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as a substitute for stenographers, and the most extravagant fancies were indulged in as to utility in that field. To exploit the device commercially, the patents were sold to Philadelphia capitalists, who organized the North American Phonograph Company, through which leases for limited periods were granted to local companies doing business in special territories, generally within the confines of a single State. Under that plan, resembling the methods of 1878, the machines and blank cylinders were manufactured by the Edison Phonograph Works, which still retains its factories at Orange, New Jersey. The marketing enterprise was early doomed to failure, principally because the instruments were not well understood, and did not possess the necessary refinements that would fit them for the special field in which they were to be used. At first the instruments were leased; but it was found that the leases were seldom renewed. Efforts were then made to sell them, but the prices were high--from $100 to $150. In the midst of these difficulties, the chief promoter of the enterprise, Mr. Lippincott, died; and it was soon found that the roseate dreams of success entertained by the sanguine promoters were not to be realized. The North American Phonograph Company failed, its principal creditor being Mr. Edison, who, having acquired the assets of the defunct concern, organized the National Phonograph Company, to which he turned over the patents; and with characteristic energy he attempted again to build up a business with which his favorite and, to him, most interesting invention might be successfully identified. The National Phonograph Company from the very start determined to retire at least temporarily from the field of stenographic use, and to exploit the phonograph for musical purposes as a competitor of the music-box. Hence it was necessary that for such work the relatively heavy and expensive electric motor should be discarded, and a simple spring motor constructed with a sufficiently sensitive governor to permit accurate musical reproduction. Such a motor was designed, and is now used on all phonographs except on such special instruments as may be made with electric motors, as well as on the successful apparatus that has more recently been designed and introduced for stenographic use. Improved factory facilities were introduced; new tools were made, and various types of machines were designed so that phonographs can now be bought a
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