A HISTORY OF EDISON'S WEST ORANGE LABORATORY 1887-1931

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Edison had put all his money into perfecting the phonograph.V-17 wary the ambitious experimental projects springing into Edison's mind. The individual Edison Illuminating companies did not have the money to buy the lighting system outright, and consequently the Edison Electric Light Company, and the various manufacturing companies, often had accept stock payment for equipment and patent rights. Pushing the system depended much the credit arrangements the technology, and only the financially strong could successfully market lighting system in the 1880s." resented their caution, which argued was. The financial burden introducing the Edison lighting system had left the companies heavily debt. A financial crisis hit them the winter 1888/1889 and they recalled many their employees from the West Orange 30 laboratory, closing down several experimental projects. Edison had little respect for the management the Edison companies, claiming that "All these people are amateurs. Finance R&D became issue because Edison and the electrical companies were both running short cash. They were dangerously overextended and increasingly vulnerable to shifts money markets. The companies remembered the astronomical costs of developing the first electrical systems and they wanted to know exactly how much was going cost before they committed themselves experimental campaign. When their finances were under pressure they immediately cut back R&D expenditure