It seems that after a year or so, Pearne lost interest in his invention and went into the teaching field. He proved to be a very successful professor at Armour Tech where he remained until his death.[3] But Pearne’s work was not in vain, for Charles L. Krum had become intensely interested and carried on the work with further inventions of his own. Indeed, he filed his first patent application on August 20, 1903, which proposed the use of a code comprising four signals: a positive pulse or a negative pulse of low voltage, and a positive or negative pulse of a higher voltage. Four additional patents were filed, the last in 1906. C. L. Krum then set about building a machine which was demonstrated in 1906 and looked promising enough to form a company to further develop it. This company was made up of the Mortons (brothers Joy and Mark) and the Krums (Charles L. and his son Howard who had just finished college). The combination of their names, of course, resulted in “The Morkrum Company,” which was incorporated in the State of Maine on October 7, 1907. The charter stockholders were Joy Morton, who shouldered the greatest financial burden; Charles Krum; Joy Morton’s secretary, Daniel Peterkin (he later became an officer of the Morkrum Company); Mark Morton; and Sterling Morton (Joy’s son, of whom we shall be hearing more later on). The working capital of the new company amounted to $150,000.00. Charles Krum’s son Howard, after graduation, joined with his father in the developmental work of this new company and, due to his studies in electrical engineering, was able to help his father considerably. His first love and intended career was music, but he put this aside in favor of his father’s telegraph printer. However, a tune on the piano which he always kept in the laboratory would help him solve many a difficult problem. In 1908 the Krums developed and produced a working model of the four-unit-code, plus-minus, high-low-voltage system, which was applied to operate the mechanism of an Oliver typewriter. The system was then given an operative test on the wires of the Chicago and Alton Railroad, of which Joy Morton was a director. As their research work progressed, Howard studied the various systems in current use and, with his father, decided to abandon the plus-minus, high-low-voltage system. They turned instead to a system using the five-unit permutation code as employed by Baudot in his multiplex telegraph in which synchronized terminal apparatus with periodic correction was the controlling feature.