It was at this juncture that Edison reached New York, and according to his own statement found shelter at night in the battery-room of the Gold Indicator Company, having meantime applied for a position as operator with the Western Union. He had to wait a few days, and during this time he seized the opportunity to study the indicators and the complicated general transmitter in the office, controlled from the keyboard of the operator on the floor of the Gold Exchange. What happened next has been the basis of many inaccurate stories, but is dramatic enough as told in Mr. Edison's own version: ``On the third day of my arrival and while sitting in the office, the complicated general instrument for sending on all the lines, and which made a very great noise, suddenly came to a stop with a crash. Within two minutes over three hundred boys--a boy from every broker in the street--rushed up-stairs and crowded the long aisle and office, that hardly had room for one hundred, all yelling that such and such a broker's wire was out of order and to fix it at once. It was pandemonium, and the man in charge became so excited that he lost control of all the knowledge he ever had. I went to the indicator, and, having studied it thoroughly, knew where the trouble ought to be, and found it. One of the innumerable contact springs had broken off and had fallen down between the two gear wheels and stopped the instrument; but it was not very noticeable. As I went out to tell the man in charge what the matter was, Doctor Laws appeared on the scene, the most excited person I had seen. He demanded of the man the cause of the trouble, but the man was speechless. I ventured to say that I knew what the trouble was, and he said, `Fix it! Fix it! Be quick!' I removed the spring and set the contact wheels at zero; and the line, battery, and inspecting men all scattered through the financial district to set the instruments. In about two hours things were working again. Doctor Laws came in to ask my name and what I was doing. I told him, and he asked me to come to his private office the following day. His office was filled with stacks of books all relating to metaphysics and kindred matters. He asked me a great many questions about the instruments and his system, and I showed him how he could simplify things generally. He then requested that I should call next day. On arrival, he stated at once that he had decided to put me in charge of the whole plant, and that my salary would be $300 per month! This was such a violent jump from anything I had ever seen before, that it rather paralyzed me for a while, I thought it was too much to be lasting, but I determined to try and live up to that salary if twenty hours a day of hard work would do it. I kept this position, made many improvements, devised several stock tickers, until the Gold & Stock Telegraph Company consolidated with the Gold Indicator Company.'' Certainly few changes in fortune have been more sudden and dramatic in any notable career than this which thus placed an ill-clad, unkempt, half-starved, eager lad in a position of such responsibility in days when the fluctuations in the price of gold at every instant meant fortune or ruin to thousands.
Edison, barely twenty-one years old, was a keen observer of the stirring events around him. ``Wall Street'' is at any time an interesting study, but it was never at a more agitated and sensational period of its history than at this time. Edison's arrival in New York coincided with an active speculation in gold which may, indeed, be said to have provided him with occupation; and was soon followed by the attempt of Mr. Jay Gould and his associates to corner the gold market, precipitating the panic of Black Friday, September 24, 1869. Securing its import duties in the precious metal and thus assisting to create an artificial stringency in the gold market, the Government had made it a practice to relieve the situation by selling a million of gold each month. The metal was thus restored to circulation. In some manner, President Grant was persuaded that general conditions and the movement of the crops would be helped if the sale of gold were suspended for a time; and, this put into effect, he went to visit an old friend in Pennsylvania remote from railroads and telegraphs. The Gould pool had acquired control of $10,000,000 in gold, and drove the price upward rapidly from 144 toward their goal of 200. On Black Friday they purchased another $28,000,000 at 160, and still the price went up. The financial and commercial interests of the country were in panic; but the pool persevered in its effort to corner gold, with a profit of many millions contingent on success. Yielding to frantic requests, President Grant, who returned to Washington, caused Secretary Boutwell, of the Treasury, to throw $4,000,000 of gold into the market. Relief was instantaneous, the corner was broken, but the harm had been done. Edison's remarks shed a vivid side-light on this extraordinary episode: ``On Black Friday,'' he says, ``we had a very exciting time with the indicators. The Gould and Fisk crowd had cornered gold, and had run the quotations up faster than the indicator could follow. The indicator was composed of several wheels; on the circumference of each wheel were the numerals; and one wheel had fractions. It worked in the same way as an ordinary counter; one wheel made ten revolutions, and at the tenth it advanced the adjacent wheel; and this in its turn having gone ten revolutions, advanced the next wheel, and so on. On the morning of Black Friday the indicator was quoting 150 premium, whereas the bids by Gould's agents in the Gold Room were 165 for five millions or any part. We had a paper-weight at the transmitter (to speed it up), and by one o'clock reached the right quotation. The excitement was prodigious. New Street, as well as Broad Street, was jammed with excited people. I sat on the top of the Western Union telegraph booth to watch the surging, crazy crowd. One man came to the booth, grabbed a pencil, and attempted to write a message to Boston. The first stroke went clear off the blank; he was so excited that he had the operator write the message for him. Amid great excitement Speyer, the banker, went crazy and it took five men to hold him; and everybody lost their head. The Western Union operator came to me and said: `Shake, Edison, we are O. K. We haven't got a cent.' I felt very happy because we were poor. These occasions are very enjoyable to a poor man; but they occur rarely.''
There is a calm sense of detachment about this description that has been possessed by the narrator even in the most anxious moments of his career. He was determined to see all that could be seen, and, quitting his perch on the telegraph booth, sought the more secluded headquarters of the pool forces. ``A friend of mine was an operator who worked in the office of Belden & Company, 60 Broadway, which were headquarters for Fisk. Mr. Gould was up-town in the Erie offices in the Grand Opera House. The firm on Broad Street, Smith, Gould & Martin, was the other branch. All were connected with wires. Gould seemed to be in charge, Fisk being the executive down-town. Fisk wore a velvet corduroy coat and a very peculiar vest. He was very chipper, and seemed to be light-hearted and happy. Sitting around the room were about a dozen fine-looking men. All had the complexion of cadavers. There was a basket of champagne. Hundreds of boys were rushing in paying checks, all checks being payable to Belden & Company. When James Brown, of Brown Brothers & Company, broke the corner by selling five million gold, all payments were repudiated by Smith, Gould & Martin; but they continued to receive checks at Belden & Company's for some time, until the Street got wind of the game. There was some kind of conspiracy with the Government people which I could not make out, but I heard messages that opened my eyes as to the ramifications of Wall Street. Gold fell to 132, and it took us all night to get the indicator back to that quotation. All night long the streets were full of people. Every broker's office was brilliantly lighted all night, and all hands were at work. The clearing-house for gold had been swamped, and all was mixed up. No one knew if he was bankrupt or not.''
Edison in those days rather liked the modest coffee-shops, and mentions visiting one. ``When on the New York No. 1 wire, that I worked in Boston, there was an operator named Jerry Borst at the other end. He was a first-class receiver and rapid sender. We made up a scheme to hold this wire, so he changed one letter of the alphabet and I soon got used to it; and finally we changed three letters. If any operator tried to receive from Borst, he couldn't do it, so Borst and I always worked together. Borst did less talking than any operator I ever knew. Never having seen him, I went while in New Y
ork to call upon him. I did all the talking. He would listen, stroke his beard, and say nothing. In the evening I went over to an all-night lunch-house in Printing House Square in a basement--Oliver's. Night editors, including Horace Greeley, and Henry Raymond, of the New York Times, took their midnight lunch there. When I went with Borst and another operator, they pointed out two or three men who were then celebrated in the newspaper world. The night was intensely hot and close. After getting our lunch and upon reaching the sidewalk, Borst opened his mouth, and said: `That's a great place; a plate of cakes, a cup of coffee, and a Russian bath, for ten cents.' This was about fifty per cent. of his conversation for two days.''
The work of Edison on the gold-indicator had thrown him into close relationship with Mr. Franklin L. Pope, the young telegraph engineer then associated with Doctor Laws, and afterward a distinguished expert and technical writer, who became President of the American Institute of Electrical Engineers in 1886. Each recognized the special ability of the other, and barely a week after the famous events of Black Friday the announcement of their partnership appeared in the Telegrapher of October 1, 1869. This was the first ``professional card,'' if it may be so described, ever issued in America by a firm of electrical engineers, and is here reproduced. It is probable that the advertisement, one of the largest in the Telegrapher, and appearing frequently, was not paid for at full rates, as the publisher, Mr. J. N. Ashley, became a partner in the firm, and not altogether a ``sleeping one'' when it came to a division of profits, which at times were considerable. In order to be nearer his new friend Edison boarded with Pope at Elizabeth, New Jersey, for some time, living ``the strenuous life'' in the performance of his duties. Associated with Pope and Ashley, he followed up his work on telegraph printers with marked success. ``While with them I devised a printer to print gold quotations instead of indicating them. The lines were started, and the whole was sold out to the Gold & Stock Telegraph Company. My experimenting was all done in the small shop of a Doctor Bradley, located near the station of the Pennsylvania Railroad in Jersey City. Every night I left for Elizabeth on the 1 A.M. train, then walked half a mile to Mr. Pope's house and up at 6 A.M. for breakfast to catch the 7 A.M. train. This continued all winter, and many were the occasions when I was nearly frozen in the Elizabeth walk.'' This Doctor Bradley appears to have been the first in this country to make electrical measurements of precision with the galvanometer, but was an old-school experimenter who would work for years on an instrument without commercial value. He was also extremely irascible, and when on one occasion the connecting wire would not come out of one of the binding posts of a new and costly galvanometer, he jerked the instrument to the floor and then jumped on it. He must have been, however, a man of originality, as evidenced by his attempt to age whiskey by electricity, an attempt that has often since been made. ``The hobby he had at the time I was there,'' says Edison, ``was the aging of raw whiskey by passing strong electric currents through it. He had arranged twenty jars with platinum electrodes held in place by hard rubber. When all was ready, he filled the cells with whiskey, connected the battery, locked the door of the small room in which they were placed, and gave positive orders that no one should enter. He then disappeared for three days. On the second day we noticed a terrible smell in the shop, as if from some dead animal. The next day the doctor arrived and, noticing the smell, asked what was dead. We all thought something had got into his whiskey-room and died. He opened it and was nearly overcome. The hard rubber he used was, of course, full of sulphur, and this being attacked by the nascent hydrogen, had produced sulphuretted hydrogen gas in torrents, displacing all of the air in the room. Sulphuretted hydrogen is, as is well known, the gas given off by rotten eggs.''
Another glimpse of this period of development is afforded by an interesting article on the stock-reporting telegraph in the Electrical World of March 4, 1899, by Mr. Ralph W. Pope, the well-known Secretary of the American Institute of Electrical Engineers, who had as a youth an active and intimate connection with that branch of electrical industry. In the course of his article he mentions the curious fact that Doctor Laws at first, in receiving quotations from the Exchanges, was so distrustful of the Morse system that he installed long lines of speaking-tube as a more satisfactory and safe device than a telegraph wire. As to the relations of that time Mr. Pope remarks: ``The rivalry between the two concerns resulted in consolidation, Doctor Laws's enterprise being absorbed by the Gold & Stock Telegraph Company, while the Laws stock printer was relegated to the scrap-heap and the museum. Competition in the field did not, however, cease. Messrs. Pope and Edison invented a one-wire printer, and started a system of `gold printers' devoted to the recording of gold quotations and sterling exchange only. It was intended more especially for importers and exchange brokers, and was furnished at a lower price than the indicator service.... The building and equipment of private telegraph lines was also entered upon. This business was also subsequently absorbed by the Gold & Stock Telegraph Company, which was probably at this time at the height of its prosperity. The financial organization of the company was peculiar and worthy of attention. Each subscriber for a machine paid in $100 for the privilege of securing an instrument. For the service he paid $25 weekly. In case he retired or failed, he could transfer his `right,' and employees were constantly on the alert for purchasable rights, which could be disposed of at a profit. It was occasionally worth the profit to convince a man that he did not actually own the machine which had been placed in his office.... The Western Union Telegraph Company secured a majority of its stock, and Gen. Marshall Lefferts was elected president. A private-line department was established, and the business taken over from Pope, Edison, and Ashley was rapidly enlarged.''
At this juncture General Lefferts, as President of the Gold & Stock Telegraph Company, requested Edison to go to work on improving the stock ticker, furnishing the money; and the well-known ``Universal'' ticker, in wide-spread use in its day, was one result. Mr. Edison gives a graphic picture of the startling effect on his fortunes: ``I made a great many inventions; one was the special ticker used for many years outside of New York in the large cities. This was made exceedingly simple, as they did not have the experts we had in New York to handle anything complicated. The same ticker was used on the London Stock Exchange. After I had made a great number of inventions and obtained patents, the General seemed anxious that the matter should be closed up. One day I exhibited and worked a successful device whereby if a ticker should get out of unison in a broker's office and commence to print wild figures, it could be brought to unison from the central station, which saved the labor of many men and much trouble to the broker. He called me into his office, and said: `Now, young man, I want to close up the matter of your inventions. How much do you think you should receive?' I had made up my mind that, taking into consideration the time and killing pace I was working at, I should be entitled to $5000, but could get along with $3000. When the psychological moment arrived, I hadn't the nerve to name such a large sum, so I said: `Well, General, suppose you make me an offer.' Then he said: `How would $40,000 strike you?' This caused me to come as near fainting as I ever got. I was afraid he would hear my heart beat. I managed to say that I thought it was fair. `All right, I will have a contract drawn; come around in three days and sign it, and I will give you the money.' I arrived on time, but had been doing some considerable thinking on the subject. The sum seemed to be very large for the amount of work, for at that time I determined the value by the time and trouble, and not by what the invention was worth to others. I thought there was something unreal about it. However, the contract was handed to me. I signed without reading it.'' Edison was then handed the first check he had ever received, one for $40,000 drawn on the Bank of New York, at the corner of William and Wall Streets. On going to the bank and passing in the check at the wicket of the paying teller, some brief remarks were made to him, which in his deafness he did not understand. The check was handed back to him, and Edison, fancying for a moment that in some way h
e had been cheated, went outside ``to the large steps to let the cold sweat evaporate.'' He then went back to the General, who, with his secretary, had a good laugh over the matter, told him the check must be endorsed, and sent with him a young man to identify him. The ceremony of identification performed with the paying teller, who was quite merry over the incident, Edison was given the amount in bundles of small bills ``until there certainly seemed to be one cubic foot.'' Unaware that he was the victim of a practical joke, Edison proceeded gravely to stow away the money in his overcoat pockets and all his other pockets. He then went to Newark and sat up all night with the money for fear it might be stolen. Once more he sought help next morning, when the General laughed heartily, and, telling the clerk that the joke must not be carried any further, enabled him to deposit the currency in the bank and open an account.
Thus in an inconceivably brief time had Edison passed from poverty to independence; made a deep impression as to his originality and ability on important people, and brought out valuable inventions; lifting himself at one bound out of the ruck of mediocrity, and away from the deadening drudgery of the key. Best of all he was enterprising, one of the leaders and pioneers for whom the world is always looking; and, to use his own criticism of himself, he had ``too sanguine a temperament to keep money in solitary confinement.'' With quiet self-possession he seized his opportunity, began to buy machinery, rented a shop and got work for it. Moving quickly into a larger shop, Nos. 10 and 12 Ward Street, Newark, New Jersey, he secured large orders from General Lefferts to build stock tickers, and employed fifty men. As business increased he put on a night force, and was his own foreman on both shifts. Half an hour of sleep three or four times in the twenty-four hours was all he needed in those days, when one invention succeeded another with dazzling rapidity, and when he worked with the fierce, eruptive energy of a great volcano, throwing out new ideas incessantly with spectacular effect on the arts to which they related. It has always been a theory with Edison that we sleep altogether too much; but on the other hand he never, until long past fifty, knew or practiced the slightest moderation in work or in the use of strong coffee and black cigars. He has, moreover, while of tender and kindly disposition, never hesitated to use men up as freely as a Napoleon or Grant; seeing only the goal of a complete invention or perfected device, to attain which all else must become subsidiary. He gives a graphic picture of his first methods as a manufacturer: ``Nearly all my men were on piece work, and I allowed them to make good wages, and never cut until the pay became absurdly high as they got more expert. I kept no books. I had two hooks. All the bills and accounts I owed I jabbed on one hook; and memoranda of all owed to myself I put on the other. When some of the bills fell due, and I couldn't deliver tickers to get a supply of money, I gave a note. When the notes were due, a messenger came around from the bank with the note and a protest pinned to it for $1.25. Then I would go to New York and get an advance, or pay the note if I had the money. This method of giving notes for my accounts and having all notes protested I kept up over two years, yet my credit was fine. Every store I traded with was always glad to furnish goods, perhaps in amazed admiration of my system of doing business, which was certainly new.'' After a while Edison got a bookkeeper, whose vagaries made him look back with regret on the earlier, primitive method. ``The first three months I had him go over the books to find out how much we had made. He reported $3000. I gave a supper to some of my men to celebrate this, only to be told two days afterward that he had made a mistake, and that we had lost $500; and then a few days after that he came to me again and said he was all mixed up, and now found that we had made over $7000.'' Edison changed bookkeepers, but never thereafter counted anything real profit until he had paid all his debts and had the profits in the bank.
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