I, too, recall the impression the Paige machine made on me when I first
saw it, back in the 70's. (And yes, in effect, it was in the basement or
ground floor).

I gather the technological issue was a design that was over-complex for
the degree of precision possible for production at that time. One might
compare the situation to that of Babbage's Difference Engine. The
designer issue - Paige himself -- is usually said to have been a big
part of the problem as well. If it was the case that the Linotype
interests offered them a buyout/cross-sell, and they refused, then I'd
see that as the pinpoint of this business tragedy

See also:

  http://www.marktwainhouse.org/themuseum/archivist.shtml

  http://www.amazon.com/exec/obidos/ASIN/0826214509/marktwainquota03

  - Charles Gold's Hatching Ruin (2003)

DDD