In 1890 instructed the Works complete all machines
ordered under the contract both the North American and the
Toy Phonograph Companies, "leaving nothing the Works that
has not been charged according contract.VI-11
several expensive experimental projects. therefore began to
manoeuvre himself away from the Lippincott organization while
doing the research that would produce successful product for
the amusement market the future. Unhappy that the graphophone
interests received royalty every phonograph sold, Edison
soon began feel that got the worse part the bargain.
The financial weakness the North American Phonograph Company
meant that could not support all the R&D effort carried out
on the phonograph the lab. His grand plan for
the laboratory was based the idea diversified operation
. was, felt, only matter of
time before the phonograph became major product like the
electric light and had intention sharing this gold
mine with the graphophone interest." Edison ordered the
workforce cut back the end the year; only work on
coin-in-the-slot machine and ore milling was continued. his own estimation,
he had invested $540,000 into the phonograph business 1891.
The North American company marketed both Edison's phonograph
and Tainter's graphophone. Edison thought that his machine was
better built than the graphophone and knew was more
popular with the customers.401, 5955)
Edison had conserve his resources.
^ (Illus 6-2, Men working phonographs, 29
