The terms of the merger as embodied in the six-line agreement (it was later made over into a twenty-five-page legal document which concluded by saying that in case of dispute the six-line agreement should be the final authority) were these: each of the old companies received a half interest in the common stock (10,000 shares) of the new company; 15,000 shares (callable at 105) of the new company’s preferred stock should be divided according to the assets of the old companies. Actually, 13,979 shares of preferred were issued, the majority going to the Morkrum group. And so it was that the agreement to join both companies under the name Morkrum-Kleinschmidt Corporation was consummated and chartered in the State of Delaware on December 29, 1924, with Sterling Morton as President, Howard L. Krum as Vice President in charge of manufacturing, and Edward E. Kleinschmidt as Vice President in charge of development, patents and foreign sales. One of the first decisions to make was whether the Kleinschmidt plant in Long Island City or the Morkrum plant in Chicago would be the headquarters for the new company. The Kleinschmidt company was on a 27,000-foot leased floor in a building which R. H. Macy Company had just purchased to use for a warehouse, and negotiations had been going on for some time for the purchase of the Kleinschmidt lease—the sum of $25,000.00 having been offered. When the union of the two companies was decided upon, an agreement to vacate on the terms offered was signed, and the Kleinschmidt firm moved to the Morkrum-owned plant in Chicago. [Illustration: Fig. 10 Morkrum-Kleinschmidt Corporation No. 14 Start-Stop Typebar Tape Printer _Picture through courtesy of Teletype Corporation_] Bringing together the engineering talent and patents of the two companies had an immediate effect toward further progress. The first thing the new company set out to do, through consolidation of their past efforts, was to perfect a satisfactory start-stop-operated tape printer for the Western Union Telegraph Company to use for circuit extension to customers who were extensively using the telegraph for immediate, written communication. (This was to speed up telegraphic communication and eliminate the need for messenger service which had been the custom.) The Morkrum company had submitted their start-stop-operated Baudot tape printer, and the Kleinschmidt company had proposed the Western Union No. 22 tape printer in a redesign to start-stop operation. Now, the new company was able to combine both plans and as a result came up with their first development, a typebar, start-stop-operated, tape printer, the No. 14 (see figure 10). In the final design, Howard Krum and his production engineers took a large part. After tests and evaluation, Western Union’s first order was for 10,000 machines at $317.00 each. This amounted to a total of $3,170,000.00. No such quantity had ever been heard of before!