Edison had devised a
magnetic ore separator because saw profitable business in
the extraction and processing the rare metals used lamp
filaments. was the critical element an
industrial empire rapidly assuming form the inventor's mind.
The phonograph, electrical, and ore milling businesses
provided the financial foundation for the laboratory. The Edison Ore Milling Company
was reorganized August 1887, its capital increased, and a
new agreement made with Edison. His first separator was designed extract iron
ore, employing powerful magnets divert iron particles from a
falling stream crushed ore.
The Edison Ore Milling Company was formed 1880 to
exploit his new patents ore separation.II- 9
that his new laboratory would able perfect a
commercial machine." Edison saw the new laboratory the
tool bring the ore milling and phonograph ventures a
successful conclusion. Edison's
expectations can seen his estimate the yearly business
of the lab with the following companies:
Edison Lamp $10,000
Edison Electric Light $5,000
Edison Machine Works $6,000
Phonograph $6,000
Ore Milling $3,000
. The Company provided $25,000 to
cover the costs experiments and Edison promised to
"construct special laboratory for the conduct and prosecution
of said experiments
