[Illustration: Fig. 11 Morkrum-Kleinschmidt No. 15 Page Printer _Picture through courtesy of Teletype Corporation_] (As may be seen in the following chapter, it was these licensing arrangements which led to the establishment of the TELEX intercommunicating teleprinter system in Europe.) In early 1927 the well-known newspaper publisher, Mr. Frank E. Gannett, came to Morkrum-Kleinschmidt, bringing his company’s engineer, Mr. Walter Morey, who had heard of various attempts to operate a typesetting machine, such as Linotype or Intertype, directly from the telegraph. Mr. Gannett said, “We have telegraph typewriters in our news rooms that record the news as transmitted from the Associated Press and the United Press, and that is fine. Now, why not go a step further and operate our typesetting machines directly from the telegraph circuit? If you can develop such a device, I will help finance the project.” Indeed, after some study of the matter, the possibility of devising such a system seemed entirely feasible and the development of suitable apparatus was turned over to the research and development department. A workable plan was soon put together and a separate company, the Teletypesetter Company, was organized, with Mr. Gannett joining financially. Edward Kleinschmidt was elected president. Development proceeded and a complete set of apparatus was set up and publicly demonstrated for the first time on December 6, 1928, at one of Mr. Gannett’s newspapers, _The Times Union_ of Rochester, New York. Teletypesetter equipment was subsequently manufactured for several installations. After the Western Electric Company purchased the Teletype Corporation in 1930, the Teletypesetter Company was sold to the Fairchild Company. Teletypesetter equipment is now in universal use by most newspapers and the larger printing companies. During the period that the United States’ business cycle was on a continuous upswing (during the late 1920s), securities sales on the New York Stock Exchange were going to constantly higher volume, and the old step-by-step stock ticker did not, by large margins, keep pace in recording stock share transactions. There was a cry for a higher speed stock ticker; in fact, the Stock Exchange officials told Morkrum-Kleinschmidt that they would be happy to convert the entire system if they could get higher speed. An adaptation of the five-unit-code, start-stop system seemed the solution and the Research and Development department set out to develop suitable apparatus. Several ideas were studied and, because of the frequent changes from letters to figures, requiring printing in separate rows on the tape, a six-unit code was adapted instead in which combinations for a figure included the sixth selecting pulse to operate the figures print hammer and block the letters print hammer.