View Single Post
 
Old 11-07-2015, 09:41 AM
Ernst Ernst is offline
Silver Member
 
Join Date: Jul 2012
Posts: 910
# 0068

New York, October 13th, 1904.

J.P. Morgan Esq.
New York City.

Dear Mr. Morgan:-

I would beg you, in all earnestness, to peruse the follow-
ing statement of facts which I have brought separately to your at-
tention.

1. Five years ago, (as you may have gathered from from
my original announcement in the Century of June 1900, copy of a
patent specification filed May 16, 1900, and article in the Elec-
trical World and Engineer of March 5, 1904) I succeeded in encircl-
ing the Earth with electrical waves. What gave to this result, far-
reaching in itself, a tremendous significance, was the observation
that in their passage, from Colorado Springs to the diametrically
opposite region of the globe and return, the waves suffered no per-
ceptible diminution of intensity, thus affording an absolute ex-
perimental evidence, that by my system power in unlimited amounts
can be transmitted, without wire, to any distance and, virtually,
without loss.

2. I recorded my discoveries in the Patent Office and
secured broad and uncontested rights in Patents, some of which I am
still keeping back, for reasons which it is unnecessary to explain.
When they appear they will create a profound impression.

3. I was, even then, firmly convinced that these advances
would prove of greater importance than the steam engine, the tele-
graph, the telephone and my multiphase motor combined, for they of-
fered an ideal solution of the problem s of fuel, transportation,
and intelligence-transmission, in all their ramifications.

4. Desiring to obtain a support such as this work was
deserving, more for the good of the world than my own, I approached
you, naturally enough with the easily realizable project of es-
tablishing communication across the Atlantic, which required a
smaller investment.

5. I was fortunate to enlist your interest, but not
quite on the lines of my own suggestion. I contemplated the forma-
tion of one or two companies, to which all my inventions in wire-
less telegraphy and telephony and in my system of lighting were,
respectively, to be assigned, and proposed that you take fifty-one

J.P.M.,-2.

Percent. Of the stock (not fifty, as you yourself said in our first
conversation, because then you would not control), the remainder to
go to my Parent Company. But when I received your formal letter
it specified an interest of fifty-one percent. in patents on these
inventions. That was different though my share was the same. It
was a simple sale. The terms were entirely immaterial to meand I
said nothing, for fear of offending you. Your have repeatedly re-
ferred to some stock and it is just possible, that a mistake was made, and that you intended to take exactly what I proposed, and
what would have been, for many reasons, greatly to my advantage.

6. Your participation called for a careful revision of
my plans. I could not develope the business slowly in grocery shop
fashion. I could not report yacht races or signal incoming steam-ers. There was no money in this. This was no business for a man
of your position and importance. Perhaps you have never fully ap-
preciated the sense of this obligation.

7. When I discovered, rather accidentally,, that others,
who openly cast ridicule on what I had undertaken and discredited
my apparatus, were secretly employing it, evidently bent on the
same task, I found myself confronted with wholly unforseen condi-
tions. How to meet them was the question. Of course I could not
enjoin the infringers. In Canada, almost midway,,I had no rights.
My patents on the art of individualization, insuring non-interfer-
ence and non-interferability, were not as yet granted in England
and the United States. Suppose I was anticipated in this inven-
tion? Then I would have to rely on ordinary tuning. This was in
a measure, satisfactory so long as I was alone, but shrewd competi-
tors, with the advantage they had, could make me fall short, as the
capital I had at disposal was only sufficient for two small plants.
Once I failed with you in the first attempt, you would not listen
to any other proposition. Once I lost your support I could not be-
cause of your personality and character of our agreement, interest
anybody else, at least not for several years, until,the business
would be developed and the commercial value of my patents recogniz-
ed. But there was one way, the only way, of meeting every possi-
ble emergency, and making the ultimate success perfectly certain.

8. Here I must add a purely explanatory paragraph. Sup-
pose a plants is constructed capable of sending signals within a
given radius, and consider an extension to twice this distance.
The area being then four times as large the returns will be, rough-ly, fourfold on account of this alone. The messages, however, will
become more valuable. Approximately computed, the average price
will be tripled. This means that a plant with a radius of activity
twice as large will earn twelve times as much. But it will cost

J. P. M.,-3.

Scarcely twice as much. Hence in investing a certain sum destined
for two small plants into a single one, the earnings will be six-
fold increased. The greater the distance the greater the gain un-
til, when the plant can transmit signals to the uttermost confines
of the Earth, its earning power becomes, so to speak, unlimited.

9. The way to do was to construct such a plant. It
would yield the greatest returns, not only for the reasons just
mentioned, but also because every other plant erected anywhere in
the world, by anyone, was sure to be turned into a source of income
It would give the greatest force to my Patents and insure a mono-
poly. It would make certain the acceptance of my system by all
governments. It discounted in advance all possible drawbacks, as
anticipation of the results by thee trespassers of my rights and
delay. It offered possibilities for a business on a large, digni-
fied scale, commensurate with your position in life and mine as a
pioneer in this art, who has originated all its essential princi-ples.

10. The practicability of such an undertaking I had al-
ready demonstrated in Colorado, but to make those feeble effects,
barely detectable by delicate instruments, commercially available
all over the Earth, required a very large sum of money. You had
told me from the outset that I should not ask for more, but the
work was of such transcending importance and it was of such enor-
mous value in your hands, that I undertook to explain to you the
state of things on your first return from abroad. You seemed to
misunderstand me. That was most unfortunate. Had I obtained your
hearing, your enemies would not had succeeded in inflicting you
injuries, for the first motor or lamp operated across the Pacific,
would have delivered them in your power. To achieve a great re-
sult is one thing, to achieve it at the right moment is another.
That favorable moment is gone forever. Your popularity has suffer-
ed, the moral force of my work has been weakened by delay, the
audacious schemers who have dared to fool the crowned heads of
Europe, the President of the United States, and even His Holiness
the Pope, have discredited the art by incompetent attempts and
spoiled the public by false promises which it cannot distinguish
from those sure of fulfillment, based on knowledge and skill and
legitimate right. That is what pains me the most.

11. Still, in spite of all this, Mr. Morgan, I can
realize what I have held out to you when you yourself said to me
that “you had no doubt”. I know you must be sceptical about get-
ting hundredfold returns, but if you will help me to the end you
will soon see that my judgement is true. Once my first plant is
completed I can place a dozen of such at once. I do not need to
wait for returns from subscribers. There are one thousand million
J. P. M.,-4.

Dollars invested in submarine cables alone. This immense property
is threatened with destruction because just as soon as people find
that messages for, say, five cents a word can be transmitted to any
distance, nothing will stop the demand for the cheaper and quicker
means of communication. The investment in cables is too large to
pay on this low basis and the only chance the Companies have is to
take hold of the new advances. My patents control every essential
element of the art. They are impregnable. In your hands, and
backed by these great results, they should be of enormous value.

12. My work is now so far advanced and could be finished
quickly. I have expened about $250,000 in all and a much smaller
sum separates me from a great triumph. If you have lost faith in
me have you not someone in whose knowledge and ability you have
greater confidence than in mine, and to whom I could explain?
Seventy-five thousand dollars would certainly complete the plant
and then I would have no difficulty whatever in getting all the
capital necessary for the further commercial expansion.

13. Since a year, Mr. Morgan, there has been hardly a
night when my pillow was not bathed in tears, but you must not
think me a weak man for that. I am perfectly sure to finish my
task, come what may. I am only sorry that after mastering all the
difficulties which seemed insuperable, and acquiring a special
knowledge and ability which I now alone possess, and which, if ap-
plied effectively, would advance the world a century, I must see my
work delayed.

In the hope of hearing from you favorably, I remain,

Yours most faithfully,
__________________
 
Reply With Quote