The Edison organization had placed sound
financial basis until new businesses such the storage
. (See Sidebar 8-1, Marketing the
Battery. was going take time before
promising new products could generate enough profits cover
the expenses R&D that overburdened their financial
statements.VIII-24
links the Edison organization, the National Phonograph
Company was also facing the great costs developing disc
record and improving the battery. They
stressed the need for sound financial base support the
weaklings and provide centralized management. The executives the
National Company shared Edison's faith the ultimate
profitability his storage battery and Portland cement, but
feared that lack credit would stop the Edison enterprise
completely drastic action were not taken 1910. They appealed to
Edison cut back some the highly unprofitable ventures,
especially the cement company, and generally economize until
the introduction new products, then the pipeline, could
replenish the treasury.
Edison had successfully developed the improved type
battery 1909, but unfortunately the market electric
automobiles had dried up.) 1911 the Edison Storage Battery was doing about
$60,000 business month, yet its start-up costs were so
high result the years R&D) that had yet record a
38
profit. The internal combustion engine now
dominated the automobile and Edison was forced look for new
markets for his battery
