In short
The “War of the Currents” in late-1800s America—how Thomas Edison’s DC electric grid beat the light-bulb problem, then lost the larger infrastructure battle to AC power, culminating in the first public electric-chair execution and the Niagara Falls AC power buildout.
Guest backgrounds
No external guests. Hosts are Jacob Goldstein and Robert Smith (Business History podcast). The episode also features historical figures: Thomas Edison, J.P. Morgan, George Westinghouse, Nikola Tesla, and William Kemmler.
Key claims
Edison didn’t invent the light bulb; he improved it and patented “electric lamp” (Jan 27, 1880). His bigger bet was the grid, but he chose DC despite AC’s long-distance advantage. Edison escalated the fight by sponsoring anti-AC demonstrations (Harold Brown) and advising New York to use AC for executions. AC ultimately won via Niagara Falls power and industrial electrification.
Notable examples
Carbonized bamboo filament lasting 1,589 hours; Pearl Street power turning on Sept 4, 1882; Kemmler’s Aug 6, 1890 execution (initial failure, then prolonged shock); Niagara Falls powering Alcoa (cheap electricity enabling aluminum).
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOEdison's Innovations and the Light Bulb
7:27 to 9:27
Explore Edison's quest for the right light bulb filament and its significance.
“he built his invention factory on a hill and he created the phonograph.”
The Challenge of Electrical Infrastructure
9:27 to 14:00
Understand the challenges Edison faced in building the electrical grid.
“There is this chicken and egg problem, which is you need the money first to build the infrastructure so that people will buy the light bulb.”
Edison vs. Westinghouse: The Battle of Currents
14:00 to 20:06
Explore the differences between DC and AC power and the implications for the future.
“But it's not like all of Manhattan, right?”
Edison vs. Westinghouse: The Battle of Currents
21:48 to 22:13
Explore the differences between DC and AC power and the implications for the future.
“Expense reports, receipt chasing, month-end close that takes weeks.”
Edison vs. Westinghouse: The Battle of Currents
22:17 to 23:17
Explore the differences between DC and AC power and the implications for the future.
“In our new series, American Genius, we tell the stories of three great writers who changed the way business works in America.”
The Arrival of Nikola Tesla
23:26 to 28:00
Delve into Tesla's journey and his revolutionary ideas in electricity.
“You have the little frumpy Thomas Edison.”
The Dangers of Alternating Current
28:00 to 29:40
Learn about the risks associated with alternating current and Edison's response.
“And so he could probably see that, like, this will be the technology that people will directly interact with.”
Edison's Campaign Against AC
29:40 to 32:20
Discover Edison's tactics to attack AC and promote DC, including public displays.
“He secretly sponsors a guy who does these public displays that goes to, you know, college campuses, you know, as a public service announcement about deadly AC power.”
The Shift to Electric Executions
32:20 to 33:59
Explore the decision to use electricity for state executions and its historical context.
“Like, I am bringing magic to the world to make everyone better off.”
The Execution of William Kemmler
33:59 to 37:10
Detail the first electric chair execution and its gruesome outcome.
“But of course, Westinghouse doesn't want this to happen.”
Show all 17 chapters
The Execution of William Kemmler
39:40 to 40:06
Detail the first electric chair execution and its gruesome outcome.
“Expense reports, receipt chasing, month-end close that takes weeks?”
The Execution of William Kemmler
40:09 to 41:12
Detail the first electric chair execution and its gruesome outcome.
“If your business runs on five different apps, 12 browser tabs, and one spreadsheet that everyone's afraid to touch, it's probably time for Odoo.”
Public Reaction to Kemmler's Death
41:16 to 42:00
Examine the public's response to the first electric chair execution and its implications.
“And in fact, his death is on the front page of newspapers around the country, all talking about how horrible it was.”
The War of the Currents at Niagara Falls
42:00 to 45:40
Explore how the decision at Niagara Falls shaped the future of electricity.
“Like you think, well, I can just put one big power plants and high power transmission lines out and we'll put safety measures in effect.”
Edison's Missteps and the Rise of AC
45:40 to 49:58
Learn about Edison's miscalculations in the battle between AC and DC electricity.
“But also, right after that, he bets wrong in what, like, frankly, at least in retrospect, seems like a pretty obvious mistake, right?”
Tesla's Journey and Final Days
49:58 to 54:26
Uncover the later challenges faced by Nikola Tesla and the impact of his contributions.
“And next time we'll talk about what was Edison's last big triumph, which was the movies, moving pictures.”
Tesla's Journey and Final Days
56:01 to 56:30
Uncover the later challenges faced by Nikola Tesla and the impact of his contributions.
“Agentic Commerce is testing that moment more than ever.”
Transcript
Automatic transcript. May contain errors.0:00This message is a paid partnership with AppleCard. There's something interesting about how seamlessly certain tools fit into daily life. Apple Card is one of those things. It can be applied for right in the wallet app on iPhone, and approval can happen in minutes. So it's ready to use immediately with Apple Pay. I'm so glad the days of finding my wallet, fishing out the credit card, using it, putting it back in my wallet, or oops, maybe I use cash, where's the ATM? Enough. The first time I used Apple Pay on my phone with my Apple Card, I was like, this is the future. There's no going back. With Apple Card, purchases earn daily cash up to 3 % with no points to track and no waiting for rewards.
0:45It's simply daily cash back that I earn on every purchase. There's even an option to open a high-yield savings account through Apple Card. And while I haven't done it yet, if I do, my daily cash can grow automatically over time without any extra effort. Because Apple Card lives in the Wallet app, it's always accessible on iPhone and can be used with Apple Pay at over 85 % of merchants in the U.S. And the security of Face ID and Touch ID prevents unauthorized purchases, whether using iPhone or Apple Watch. To explore it yourself, you can apply for Apple Card in the Wallet app on your iPhone. Subject to credit approval, savings is available to Apple Card owners subject to eligibility.
1:31Savings in Apple Card by Goldman Sachs Bank USA, Salt Lake City Branch, member FDIC, terms and more at applecard.com. Running a business shouldn't feel like surviving a software group project. One app for accounting, another for inventory, another for sales, and somehow none of them talk to each other. That's where Odoo comes in. An all-in-one business management software that brings every part of your business together. From sales and accounting to inventory and marketing, all in one powerful platform. No messy integrations, no bouncing between tabs. And best of all, no spreadsheets. Stop managing software and start managing your business with one unified system.
2:13Try for free today at odoo.com slash iHeartRadio. That's O-D-O-O dot com slash iHeartRadio. This episode is brought to you by Navy Federal Credit Union. At Navy Federal, they want you to know that if you need a positive sign towards achieving your goal of home ownership, this is it. Because even though today's housing market can seem discouraging, the Home Buyers Choice Loan offers members down payment options as low as 0 % with no required private mortgage insurance. Look for your sign today, Navy Federal Credit Union. Navy Federal is insured by NCUA, Equal Housing Lender. Terms and conditions apply.
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3:06Pushkin. Too quick? No, it was perfect. Pushkin. Stop. You got it.
3:14Take one, scene one.
3:26Robert Smith, I'm going to start with this. Thomas Edison did not invent the light bulb. Killing me here. You knew this. I did know this. Yeah, I mean, he improved it, right? But by the time he got to work on the light bulb, this is like late 1870s. People had been working on incandescent bulbs for a long time, right? For decades. But there was a problem, right? Nobody could figure out how to make a light bulb that lasted, that lasted long enough to be a thing people would actually use. And the key kind of limiting factor was the filament, the thing in the bulb that heats up and glows, right? And so the basic question is, what thing can you use?
4:03What material is cheap and abundant and will make a good filament? This is the canonical Edison story right here, right? If you know one Thomas Edison story, you know the story of Edison's search for the right filament. He's in Menlo Park, right? He's got the invention factory that we talked about last time. He's got his muckers around him. Filled with materials, test tubes, everything you can need for invention. They are trying literally thousands and thousands of things to see what'll work as a filament. Here's a partial list from the Edmund Morris Edison biography of things that they tried inside the lightbulb.
4:39Sassafras pith. Monkey bast. I think it's a tree. Something from a tree, I think. Ginger root. Pomegranate peel. Oh, if only our modern technology is based on pomegranates. Eucalyptus. Cinnamon bark. Palm fronds. Jute boiled in maple syrup. How you even come up with that? You're like, I don't know, jute's not working. Jute didn't work. What if we go like, I got an idea. Macaroni and asphalt. There was also this moment apparently where a few people on Edison's team used hair from their beards as filaments. You know, they had the long beards and they're like, I don't know, maybe my hair will be the one that solves this problem.
5:15They take bets on whose would last the longest. It would have been amazing if one guy's beard hair worked. But then what do you do? If it's just like just his hair, you're like, bro, we got to industrialize you, man. So they do eventually find the thing. Right. As we know. And it's carbonized bamboo. I do not know that. And they make a prototype bulb with the filament of carbonized bamboo. And it lasts for one thousand five hundred and eighty nine hours. It's a winner. Right. This is long enough to make a light bulb that's going to work. And it finally burns out. And a guy in the lab is, you know, sees marks the time.
5:51he takes the bulb and he rushes upstairs to Edison to say, we've got it. You know, a little light bulb above his head idea, right? And they all apparently like start dancing around, go outside, dance into the night because they have succeeded. In the darkness, mind you, because the light bulb had just burned out. So beautiful. And so on January 27th, 1880, Thomas Edison is granted patent 223-898. And this patent is just called, gloriously, electric lamp. And this is Thomas Edison, again, not inventing the light bulb, right, but improving it. But the thing I want to say about this canonical Edison light bulb story is the light bulb in the Thomas Edison story is way overrated.
6:35There's another patent that he applied for around the same time, it was granted later, that I think is much more important, much more telling, much more at the center of today's story. And that is patent number 369280, System of Electrical Distribution. The grid. The grid. The electrical grid. The big idea, right? The light bulb is the small idea. The carbonized bamboo, but the grid is what will change America. And really strikingly, this is what Edison is thinking about from the very beginning. It's clear from the historical record before he even gets anywhere with the bulb, he's already imagining electrifying the world.
7:17I'm Jacob Goldstein. And I'm Robert Smith. And this is Business History, a show about the history of business. This is our second of three shows about Thomas Edison. Last time you may remember, he built his invention factory on a hill and he created the phonograph. Wasn't the first to bring market, but still a miracle. And he became famous as the Wizard of Menlo Park. And so today we find Edison still in his early 30s, still a young man, a mere boy. And he's thinking much bigger than the phonograph now, right? He's not thinking about a light bulb. He is thinking about how to power a city with a million light bulbs.
7:54He's thinking about how big electric power can be beyond the light bulb. Electricity is going to be the transformative of technology for the next hundred years-ish. And yet, at a really crucial moment, Edison is going to make a fundamental mistake, a classic business kind of mistake. And this mistake is going to get him into a public and really a gruesome fight. People call it the war of the currents. It gets personal, it gets ugly, and Edison, maybe for the first time in his life, is going to lose. Edison has this idea for the light bulb and for the grid. And this idea presents a really particular, really interesting kind of problem in innovation, right?
8:34Like you can come up with a new idea. You can build the perfect prototype, a perfect light bulb, the first locomotive, you know, an electric vehicle that people are actually might want to buy. But nobody's going to buy a light bulb or a locomotive or an EV, no matter how beautiful and perfect they are, unless there is this infrastructure built around them, right? For a light bulb, you need an electric grid. For a locomotive, you need hundreds of miles of railroad tracks. For an EV, you need charging stations all around the country. And we call this the network effect at business school. It's the classic, like, no one wants to join a social network with only one person on it.
9:13Yes. And at least with a social network, it's just software, right? Like you can, if you can get people going, it can build. But in this case, in the case of the light bulb and the grid, even if everybody buys a light bulb, that's still not enough money to build the grid, right? There is this chicken and egg problem, which is you need the money first to build the infrastructure so that people will buy the light bulb. And this is what finance was invented for. Large amounts of money, capital, that can be invested for a future outcome. So Edison wants to build his grid in lower Manhattan, right?
9:47This is the densest area of the United States at this point. He wants to dig up the streets and lay wires, build these giant dynamos to generate electricity for everyone. And the cost at the time just must have been enormous. But fortunately for Edison, he knows a very rich person, a financier whose office is right in the middle of where the grid is going. Not a coincidence. And he's amassing power on the scale never before seen in the United States of America. This man. J.P. Morgan. Oh, man, I was going to do a big reveal. John Pierpont Morgan. I was going to do it in that voice. OK, yeah. J.P.
10:21Morgan, banker who created modern American economy, right? At the time, America didn't have a central bank, and J.P. Morgan sort of acted as this. He was this conduit, this center of the spokes of all the money and power in the United States. It went through J.P. Morgan. And J.P. Morgan, like billionaires everywhere, loved to be the first to get a new technology, and he loved the electric light. There's this story, actually. J.P. Morgan had this mansion right in the middle of Manhattan, of Midtown Manhattan, essentially, right? And he wanted to have lights, these new electric lights. But there wasn't a grid at the time.
11:02And just to go back a little bit, electric generators had been around for a while, you know, probably 50 years at this point, Michael Faraday. and you know it's a it's a way a mortar goes and it moves a magnet next to a wire and it creates electric current but has to be very close to the electric light so in order to get electric lights in his mansion he had to also have a generator and this meant he had to hire somebody to run the generator and this person would come at three o 'clock in the afternoon crank up or however they started the generator the lights would go on in the house and i just picture eight nine o 'clock this single glowing house in the middle of Manhattan.
11:40Everyone else has the flickering gas lights, but you've got this bright electric light in the middle of Manhattan. And then at 11 o 'clock, engineer's like, yep, turn it off the engine, turn it off, and goes home. Like, this was such a pain in the ass that only the richest man in America could have this kind of system, right? In fact, at one point, I guess he wired up some of the lamps on his desk, well, someone did it for him, and it started a fire, and they put out the fire, and they're like, I don't know, This is kind of weird, like, for you to have this dangerous technology, like, running through your home.
12:12And he's like, eh, it's fine. So Morgan becomes the key backer of Thomas Edison and his dream of building a grid. And Morgan gets the money together. That's what he does. He finances this essential infrastructure. And Edison makes it happen. You know, his team digs up the streets all around Lower Manhattan. They put the wires in. Edison builds this power station on Pearl Street. And amazingly, the whole thing from, like, the time he gets the idea until it's ready to go is four years. Which, like, what could you build in New York today in four years? We used to build things in this country. I mean, it's true.
12:50It is true. Okay, so September 4th, 1882, we are ready. Edison is ready to turn on the power. Tell me there's one of those giant switches, you know, like, chonk. I think there is a clunk switch. Yeah, yeah. Interestingly, Edison is not the man to pull it. In fact, he's not even at this power station that he has built. He's a few blocks away. The office of? J.P. Morgan. J.P. Morgan, right? The real power in this situation, am I right? Yeah, so Edison is at Morgan's office on Wall Street. The power is supposed to go on at 3 in the afternoon. You know, there's light bulbs screwed into sockets all around the office.
13:31And, you know, there's all these fancy people standing there waiting for the lights to go on. And it's almost three. And nobody's ever done this before. So it's not even clear if it's going to work, right? They're standing there thinking, are the lights going to go on in a minute or not? And a guy goes,$100 says they don't go on. Schmuck. And Edison goes, taken. And then the lights go on. Woo! It works. Gets his hundred bucks. And they go on, you know, around the neighborhood. They go on around this neighborhood, around the power station. But it's not like all of Manhattan, right? This power plant is big enough to light up like a mile.
14:07It's not even a square mile at the beginning, but that's about the limit of it. And this is really important because it's not just because this is like a prototype or something. It's inherent to the technology that Edison is using. And specifically, specifically, he's generating direct current or DC power. And for sort of basic reasons, you couldn't send DC power much more than a mile from where it was generated. Now, of course, at this point, we could say, oh, it's we don't want to get into the whole complicated AC versus DC thing. We do want to. So DC direct current, I like to think of as blowing air through a straw, right?
14:46Right. Electrons are moving through a wire in a straight line, essentially. And anyone who's been a kid has probably built something with a little light bulb and two wires and a battery. That is a direct current. Yeah. And battery is direct current. Today, when you have a battery, that is sending direct current. But there is a different kind of power called alternating current, AC. And this is kind of a genius move, right? You want electrons to move in the wire. That's what creates the work. But nothing says it has to go in one particular direction. it works if you send the electrons in the opposite direction or it works if the electrons kind of go back and forth whoo whoo whoo that's the alternating whoo whoo whoo it does just as much work i saw something on the internet and i love this idea of a saw like a saw does not go in one direction a saw goes back and forth but if you do it enough you can saw through a log right so we have the air through the straw the direct current and the saw the alternating current sure And there's one quality of AC that is going to be essential here.
15:46And that is this thing we were talking about, about the distance. So in the nature of AC, you can basically run it at really high voltages, like really high dangerous voltages. And the way it works is you could send those voltages over wires for miles, hundreds of miles, really. And then you use something called a transformer to step that power down to something useful. But those transmission lines, the one you see all over the country now, like the transmission line is the key here. They run an alternating current. They can go for amazing distances. And so then you have this tradeoff, right? Like, well, OK, high power, high voltage, really dangerous.
16:28That's AC, but it goes a long way. Or you could go a shorter distance at a lower voltage. It's much safer. And Thomas Edison, I don't know, maybe because he's a good guy or maybe because he just thinks he can build millions of power stations, you know, local power stations, thinks, I'm going to go with D.C. It is the safe and reasonable thing to do here. Not everybody makes that choice, though, right? In Europe in particular, they start experimenting with AC systems pretty early. And this industrialist in the U.S. named George Westinghouse sees this, right? He reads the journals. He keeps up with technology.
17:06And Westinghouse is going to become the AC guy in America. And Westinghouse is interesting. I didn't really know about him before this. Had his name on appliances on a famous science prize. Yes, that Westinghouse. So he was like he's kind of like a second tier industrialist, right? Like he's not like a Vanderbilt or a Carnegie. But he was a big deal then. Invented an air brake for trains. That was his first thing. has a company in Pittsburgh and, like, seems like, at least as far as sort of robber barons go, seems like a decent guy. He gave workers Saturday afternoons off as well as Sunday and a nine-hour day, which at the time was, like, pretty good.
17:41He hired women as engineers when basically nobody else did. And so in 1885, which is three years after Edison turned on the power in Manhattan, Westinghouse buys the U.S. rights to this AC system that they've been working on in Europe. And he knows what is now sort of this fundamental canon of business, which is just because you're first doesn't mean you're going to win. Like you see the power that Edison had and you're like, well, I think there's a better system that can beat Edison now that Edison has sort of demonstrated that a grid is possible. Let me show you what a giant grid would look like.
18:17Yeah. So AC has this advantage, giant grid. It does still have one disadvantage that Westinghouse is acutely aware of, and that is motors, right? Like, we start with the light bulb, but as we were saying at the beginning, like, electricity is going to be this transformative, what's the word I'm looking for? Like, you mean GPT, general purpose technology? Thank you. Electricity is going to be this general purpose technology, like computers, right? It's going to be this thing that changes everything. And people are starting to realize that. And in particular, they're realizing that electric motors are going to be a huge deal for industry.
18:53You know, the steam engine at this point is like 100 years older. So the useful, widely applied steam engine, right? It was the driver of the Industrial Revolution. It allowed people to make better factories, more widely distributed. It powered trains and boats. And so now you see, oh, the motor is going to be even better. The electric motor is smaller than a steam engine. It's more efficient. You can put it around the factory wherever you need it. But at this point in the 1880s, there are DC motors, but there are no sort of practical, efficient AC motors. And Westinghouse knows AC is not going to beat DC without a motor.
19:33Fortunately for Westinghouse, he's about to meet one of the great electrical geniuses of the age, really of any age. You're going to save it till after the break? We should say it now. Nikola Tesla. Man who went to work for Edison and then quit. After the break.
20:06This message is a paid partnership with Apple Card. There's something interesting about how seamlessly certain tools fit into daily life. Apple Card is one of those things. It can be applied for right in the wallet app on iPhone, and approval can happen in minutes. So it's ready to use immediately with Apple Pay. I'm so glad the days of finding my wallet, fishing out the credit card, using it, putting it back in my wallet, or oops, maybe I use cash, where's the ATM? Enough. The first time I used Apple Pay on my phone with my Apple Card, I was like, this is the future. There's no going back. With Apple Card, purchases earn daily cash up to 3 % with no points to track and no waiting for rewards.
20:52It's simply daily cash back that I earn on every purchase. There's even an option to open a high yield savings account through Apple Card. And while I haven't done it yet, if I do, my daily cash can grow automatically over time without any extra effort. Because Apple Card lives in the Wallet app, it's always accessible on iPhone and can be used with Apple Pay at over 85 % of merchants in the US. And the security of Face ID and Touch ID prevents unauthorized purchases, whether using iPhone or Apple Watch. To exploit yourself, you can apply for Apple Card in the Wallet app on your iPhone. Subject to credit approval, Savings is available to AppleCard owners subject to eligibility.
21:38Savings and AppleCard by Goldman Sachs Bank USA, Salt Lake City Branch, member FDIC. Terms and more at AppleCard.com. Ask yourself, what are your best people spending their time on right now? Expense reports, receipt chasing, month-end close that takes weeks. You become what you spend on, and that's not what you're building toward. Brex is the intelligent finance platform that eliminates that work before it starts. AI agents that handle the manual stuff automatically, so your team can spend their time on what actually compounds. It's time to get Brex AF. Learn more at brex.com slash AF. Hey, it's Jacob Goldstein from Business History.
22:19In our new series, American Genius, we tell the stories of three great writers who changed the way business works in America. Our first episode is about Benjamin Franklin, who, among many other things, was a best-selling business writer. Take a listen. He's writing this much later in his life, consciously creating this image of himself. And I do want to emphasize how unusual this model is at the time, this self-made man myth, because you don't want to be self-made. It's low class to be self-made. You know, this idea that we have today is the opposite, right? And it comes from Franklin. Today, there is the derisive term nepo-baiting.
23:02Well, exactly right. And these days, if you are a billionaire, you had better have a Benjamin Franklin story about starting in a garage, coming up with the idea from nothing. And here is Benjamin Franklin inventing it right before our eyes. This has been brought to you by Odoo. To listen to more of our American Genius series, listen to business history. New episodes release every Wednesday on the iHeartRadio app or wherever you get your podcasts.
23:39Robert Smith. Let's do this. Tell me about Nikola Tesla. Nikola Tesla. Beloved by nerds everywhere. Classic Serbian weirdo. Such a weird guy. Poet genius. And he comes into this story. You have the little frumpy Thomas Edison. You know, he loved to dress in country wear, you know, lived out there in Farmville in New Jersey. You know, just a classic American good guy. And into this picture comes Nikola Tesla. Six foot two, gray blue eyes, beautiful mustache. And he had these weird personality traits. For instance, he loved the number three. He felt like the number three was mystical in some way.
24:22So before he'd go into a building, he'd have to walk around it three times. Okay. So he fell in love with electricity as a toddler. So the story goes when he was petting his cat in the evening and he saw these bright sparks going between his hand and the cat. Right. And his mom says, hey, stop playing with the cat. You'll start a fire. And Tesla thinks. Electricity, fire. Is nature a giant cat? And if so, who strokes its back? It can only be God. I love him so much. So he grows up, studies electricity in Budapest, and one day he's walking in the park with a friend and he has this inspiration and he picks up a stick and in the dirt, he draws the solution to the big problem.
Read the full transcript
25:09An AC motor, a beautiful, efficient AC motor, like a true eureka moment. And Tesla says to his friend, no more will men be slaves to hard tasks. My motor will set them free. It will do the work of the world. That's one of those lines that if it was somebody else, I wouldn't believe that the guy said it. But I feel like Tesla is totally the guy who says that. I think he speaks in complete cryptic poetic sentences. I bet he said that all the time about his inventions. This just happens to be the one that's true, right? Every time he opens a door, he goes, Now men will no longer be slaves to hard tasks.
25:44Men will no longer have to open doors. So he makes it to the U.S. and he does what anyone would do in this situation. He goes to work for Edison. He's like, oh, Edison's the guy, right? But Edison is not interested in Tesla's AC motor because Edison has already made his mental decision that he is a DC man. So Tesla quits, gets a little funding, gets a patent on his AC motor. And pretty soon, who comes knocking at Tesla's door? George Westinghouse. So George Westinghouse, remember, he's seen the AC in Europe. He thinks that this is going to be the answer. So he pays Tesla$70 ,000 in cash. What an enormous amount at the time, right?
26:24And royalties on every future Tesla motor. They're already calling it a Tesla motor that Westinghouse sells. And Nikola Tesla, you know, he carefully saves and invests that$70 ,000 in cash. No, he does not. He is a Serbian poet genius. He starts to spend it, right? He moves into the Waldorf Astoria, the fanciest hotel in New York at the time. He wears tailored suits. He eats dinner every night at Delmonico's. I think it's like precisely at 8.10. Why? Nobody knows. He has 18 napkins delivered to him. A little bit of a germaphobe. Plus 18 is divisible by three. And he becomes this celebrity, right?
27:02People like Mark Twain come to hang out in Tesla's lab just to watch the electricity fly, the lightning bolts across the room. Meanwhile, across the Hudson River in New Jersey, Edison, our main character, come on. He's a very interesting, huge figure in the history of business and technology. And he is seeing his lead diminish, right? He was first in the world with the grid, with his DC grid. But now Westinghouse and AC Power are catching up. And there's this interesting question, right? Like, is Edison only Team DC because that's what his patents are, you know, strongest in, that's where he started?
27:44Or does he really believe that AC is dangerous? And I think he really believed AC is dangerous. Now, maybe it's motivated reasoning, right? No, but I think because he sees farther than most people, I think that what he saw was these wires will go into every home, every business, under every street. It will be on every street corner. And so he could probably see that, like, this will be the technology that people will directly interact with. And why not make it safe? And it is the case around this time that there are these instances where, like, you know, a kid will accidentally touch a downed AC wire and die.
28:20Like, that happens routinely. And, in fact, at a given voltage, AC is more dangerous than DC. In part, kind of amazingly, because the nature of AC in the human body is such that if you accidentally, like, grab an AC wire, something about the alternating current can, like, freeze your muscles so that you cannot let go and you just hold it until you die. So Edison feels like he needs to tell the world about the dangers of alternating current. And he starts to attack not just AC but Westinghouse. It starts in February of 1888. He publishes a booklet. Oh, crazy. This is the first shot in The War of the Currents.
29:03The booklet is called A Warning from the Edison Electric Light Company. 88 pages long. 88 pages long. A novella, let's say. And it lays out all the reasons ACO's bad. Like, yes, the danger, but also Edison says he owns all the relevant patents. And so look out, I'm going to shut you down. And also he points out that still Westinghouse hasn't figured out how to reliably produce an AC motor. Like he's, you know, working on producing Tesla's idea, but it's still in progress. But the booklet is just the beginning. And imagine Edison, you know, he sees the dangers, he fears that he is losing. And so he starts to, I would say, go too far, right?
29:44He secretly sponsors a guy who does these public displays that goes to, you know, college campuses, you know, as a public service announcement about deadly AC power. Harold Brown is his name. And he gets up on the stage and he reads a paper about the virtues of D.C. and the dangers of A.C. But all the time he's reading, the audience can see there is a dog cowering in a wooden crate. One time it was a 76-pound Newfoundland, right? So, like, this is why people have gathered. At one point, Brown turns his attention to the dog, to the Newfoundland. And he hooks wires to its back legs and front paws.
30:22And he starts delivering jolts of AC and then DC power back and forth. And then eventually Brown administers a deadly jolt of AC. And the dog dies, proving, he says to the crowd, that, you know, AC is more deadly. In secret, apparently Edison let Brown, like, do experiments on dogs, offering a reward for people to bring stray dogs to execute. You know, it was drawing crowds, but it wasn't quite working. So they start to use AC to electrocute calves, horses, just to show you, like, this is so dangerous. It can take down an animal larger than a human. And then they go from animals to people. What happens is the state of New York, someone in the state government of New York, decides that the state needs to modernize the way it executes convicted criminals.
31:14They'd been using hanging, death by hanging, which apparently goes wrong more than I thought. It's harder to hang people than I thought. And so somebody thinks, oh, well, electricity, that's this new, you know, high-tech thing. Maybe that will work better. And so somebody writes to Edison, you know, the Wizard of Menlo Park, the expert on electricity, and says, should we use electricity for state executions? And initially, Edison says, I oppose capital punishment. Don't bother me about this. Let me go invent things. But then he thinks about it some more and he gets back to him and he says, yes, electricity could work.
31:55Oh, and by the way, it should definitely be alternating current. And he even writes a letter where he says states should buy generators that are, quote, alternating machines manufactured principally in this country by George Westinghouse. Says it by name. I can't believe it. And it does make me sad because I know Edison is the hero of the story, as he is for this whole series. And generally so far, we've seen him make, I would say, pretty moral decisions about his technology. Right. And I mean, that's his whole vibe. Like, I am bringing magic to the world to make everyone better off. And this is one of those instances where maybe he's talked himself into it, that this is the right thing to do.
32:41Maybe he thinks that I can't bully my way out of this with lawyers and patents. But this is the first time I've seen him really go after a competitor in a way that is vicious. It's bad, right? It's bad. New York takes Edison's advice. Of course, Westinghouse isn't going to sell the state of New York generators, but they actually buy used Westinghouse generators and they build a few electric chairs, the first electric chairs. And on March 29th of 1889, a man named William Kemmler, who the New York Times calls an alcoholic vegetable peddler in the slums of Buffalo, he wakes up from a drinking binge, starts arguing with his girlfriend, Matilda Ziegler, accuses her of cheating on him.
33:30And then, according to the Times, when the argument reached a peak, Kemmler calmly went to the barn, grabbed a hatchet, and returned to the house. And he killed Matilda Ziegler with a hatchet. It's pretty clear he did it. He says he did it. There's a lot of evidence that he did it. And he's convicted, and he's sentenced to death. And he's on his way to being the first person ever executed by the state with electricity. In fact, somebody invents the word electrocution right around this time. But of course, Westinghouse doesn't want this to happen. He doesn't want his machines killing a man in this very public way.
34:09And so Westinghouse hires a lawyer, this really famous lawyer, to defend Kemmler, to argue in particular that killing someone in the electric chair is cruel and unusual punishment. By the way, the electric chair was actually invented by a New York dentist who happened to be a Quaker. and he had seen someone accidentally touch a generator and be instantly killed. And he thought, oh, this would be a more humane alternative to hanging. So anyway, on July 23rd, 1889, Edison is called to testify in this case over whether killing someone in an electric chair is cruel and unusual punishment. Edison, as I mentioned in the previous episode, is largely deaf.
34:53He goes in to testify, and the lawyer basically has to like yell into Edison's good ear so Edison can hear the question. The New York Times said you could hear it from the street, although maybe that's poetic license. Here, we have the transcript here. The lawyer says, I won't do the yelling part, do you believe that an artificial current can be produced which will cause death instantly and painlessly when scientifically applied? And Edison says, that is my firm belief. His exchange, his testimony runs in the New York Times under the headline, Testimony of the Wizard. And then the subhead says...
35:28He is positive that an alternating current of 1 ,000 volts would surely kill a man. Can't buy that kind of publicity. Anti-publicity. Edison tried to buy it, but in this case, he didn't have to buy it. And in fact, Kemmler loses the case. The judge says the state can execute him in the electric chair. And so the day comes. It's August 6, 1890. 90. Kemmler gets woken up at 5 a.m., puts on a suit, has a black and white check bow tie. They shave part of his head so that they can put an electrode there, you know, to make contact with the skin. At the last minute, actually, the warden has to cut through Kemmler's, like, shirt tail so that their electrode can make contact with his back.
36:11And Kemmler seems collected. The warden seems nervous, actually. The warden seems kind of shaky, but Kemmler is collected. Kemmler actually says to the warden, take your time, do it right. And the warden attaches the electrodes, straps Kemmler's arms to the chair. He actually puts this sort of leather mask on Kemmler's face that straps his head back into the chair. And then the warden says, goodbye, William, which is the signal. It's the signal for someone to turn on the power to the chair. And they do that. They turn on the power. Kemmler's body goes rigid, just like a bronze statue, somebody said.
36:49And they leave the power on for 17 seconds. And there's a doctor standing right there monitoring it. And he says, he's dead. That's enough. And they turn off the power and power goes off. And then they look at Kemmler and they see that he's still breathing. He's not dead. People start screaming. Someone faints. So they turn on the power again. And this time they leave it on, not for 17 seconds, but for several minutes. It burns Kemmler's flesh. You can smell it, apparently, in the room. His clothes catch on fire and somebody puts it out. And then finally, they turn off the power. And this time, Kemmler is dead.
37:30And that dentist who invented the electric chair was, in fact, one of the witnesses, was in the room at the time. And after it was over, what he said was, quote, we live in a higher civilization from this day. This is history. We'll be back in a moment.
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41:12That is the end of the ads, and now we're going back to the show. So Temmler has been executed. And in fact, his death is on the front page of newspapers around the country, all talking about how horrible it was. But the news doesn't have the effect on public opinion that Edison frankly hoped it would. Right. Everybody doesn't suddenly say, oh, we can't have AC power. It's obviously too dangerous. they basically just said, oh, yeah, do not strap me into a chair and run a thousand volts of AC power through my body. And, you know, in fact, the key audience here is not the mass public, right? It's the government officials who are the ones deciding what kind of power plant, what kind of power system to buy.
41:58Yeah. And you don't want to have to build a DC power plant every six or seven blocks. Like you think, well, I can just put one big power plants and high power transmission lines out and we'll put safety measures in effect. So it kind of makes sense that if you're thinking of it that way, you are going to go with the more efficient option. And the last big moment in the fight happens at Niagara Falls, actually, which, by the way, how many A's are there at Niagara? Three, two. It's Niagara. Oh, OK. I didn't know. I kept spelling it wrong. And I get the little line in Google Docs. It's Niagara. So the final moment in the War of the Currents, it happens at Niagara Falls.
42:44Because, you know, they're like these businessmen and bankers looking at this beautiful falls and thinking, look at all that kinetic energy. We could definitely spend some turbines. Yeah, yeah, yeah. So they decide they are going to build what is by far, by far the biggest power plant in the world. And so when they're making the decision, like, DC is still a possibility. Actually, Lord Kelvin of absolute zero fame says go with DC. But they go with AC. They use Westinghouse generators. And it is really striking what happens there. As soon as this is happening, as this is happening, big power-intensive companies see that it's happening and start moving their operations to be next to Niagara Falls, essentially.
43:26Like a striking one is the Aluminum Company of America. Alcoa. A.K.A. Alcoa. Takes a ton of electricity to make. Right, still, right? Still, where aluminum plants are around the world is where there is cheap electric power because that is the big expensive input, right? And so cheap, abundant power from Niagara Falls and places like it is truly what allows aluminum, for example, to become this cheap, abundant, essential 20th century material. You know, soda cans, aluminum siding, airplanes, right? You need cheap electricity to get this. And, like, go back to the beginning of the show, right? When I was saying, I don't care about the light bulb, I care about the grid, this is what I'm talking about, right?
44:11Like, what matters is the grid. What matters is cheap, reliable, abundant electric power. This is the second industrial revolution. This is the great transformation that creates the 20th century. And, like, go even bigger, right? Like, human material progress for all time foundationally rests on harnessing energy. Like, you can go all the way back to fire, the first big one, right? And then you can go to the industrial revolution, right? Basically, coal and the steam engine are the bedrock of it. And then now you have electricity, this next huge step function in human material well-being. And you can see, because of the aluminum plant, how cheap electricity makes aluminum cheaper, which makes cans cheaper and eventually airplanes cheaper and all the things you build out of aluminum.
45:02You can see that fundamental efficiency travel through the entire industrial system. Yes, everything, right? All factories are going to switch from steam power to electricity because it's better. And it takes decades. You see it like well into the 20th century. You're still seeing productivity gains that are the result of electricity. And now so we have Edison, right? This is a story about Edison. And he plays a super interesting role in this story, right? Like, on the one hand, he is the guy for electricity, builds the first real grid, makes the breakthrough, makes it happen fast, gets the money.
45:41But also, right after that, he bets wrong in what, like, frankly, at least in retrospect, seems like a pretty obvious mistake, right? Like, he bets on D.C. when A.C., it seems clearly like it was the better pick. It's interesting. One of the things I love about business history is that there's so much logic and numbers in the whole thing. But then there's always a moment where ego steps in. And I do think there is, like, this is a man who has not fumbled the ball for most of his career. A few mistakes here and there. I kind of fumbled it on the phonograph. Yeah. But, like, he's, like, he's famous, you know?
46:20The most famous. The most famous. And he's getting used to using that fame to get exactly what he wants. and he just steps one step too far. Yeah, like he's too attached, right? Like he was too in love with his original idea. And it is amazing. Like Edison was just so focused on DC. Literally Tesla was working for him. Tesla had the idea for the AC motor. Like it was right there, but Edison couldn't let go of his original idea. And this is like a classic business story. I couldn't think of like of a perfect analogy. I mean, like, kind of like Sony with Betamax, which came before VHS, but not exactly.
47:00I mean, one that's really fun, if not exactly the same, but that I like. Did you know that in the year 2000, Blockbuster Video had the chance to buy Netflix for$50 million? Oh, could have sent VHS tapes through the mail, yeah. Right. So, right. At that time, Netflix was DVDs by mail. and Blockbuster was like, that's some weirdo niche business. For cinephiles, we've got thousands of video stores. We make all this money on late fees. We're not going to do it. And it's easy to mock in retrospect when people make these kind of mistakes. But like, if you're Edison, to go back to Edison, right? In a way, Edison maybe had to be so attached to his idea, right?
47:41Like, think of what he's deciding to do, right? He's thinking, not only am I going to perfect the light bulb in a world where people have been working on it for decades and haven't done it. I'm going to build the world's first grid when that doesn't exist. I'm going to dig up Manhattan and I'm going to do it in four years, right? So maybe to be that audacious, you have to be so full of confidence that you don't have any doubt, you know, that you stick to beliefs even when you're wrong. When you have an invention and you're out there competing on what's the best invention, that's one thing. But when you're in one of these standards wars where you realize there will only be one winner, And Edison was probably familiar with this, you know, on the railroad, like there has to be a certain width of the railroad gauge, right?
48:26And like someone's going to win because it only makes sense to have one winner. And so, you know, we can debate his reasons, but it is logical to say, if my confidence can make my standard win, then I am going to show no doubt whatsoever, even when the evidence is to the contrary. I'm going to be the winner who takes all. So he didn't win, of course. And in fact, even before that power plant at Niagara got built, J.P. Morgan, you know, the original guy who made Edison's power grid dream come true, J.P. Morgan saw which way the wind was blowing, a thing he was good at, right? Not a man who got emotionally attached.
49:11And he merged Edison's company, Edison General Electric, with another company called Thompson Houston, which was in the AC business. Of course, Edison hated the deal, right? He didn't want to be in business with a company that was doing AC. But he lost control of Edison General Electric by that point. And in fact, after the merger, Edison General Electric became known as just General Electric. GE. GE. And Edison basically walked away. But the one thing, like we're going to leave Edison here, but the one thing I want to say, and this is kind of setting him up for the next time when we'll talk about Edison's final big triumph.
49:49Edison didn't look back. Like he always thought the next thing is going to be even bigger. And he thought that at this point. He thought that when he walked away from electricity. And next time we'll talk about what was Edison's last big triumph, which was the movies, moving pictures. And specifically, the way Edison came to control the entire American film industry, despite the fact that he did not invent the movie camera. Becoming his style, right? His style. Before we go, we should talk about the end of Nikola Tesla's story. Tesla, of course, was the man who could have made Edison the A.C. king.
50:26We wouldn't be telling the story in this case. We'd just be like, he's a genius all the way through. Edison, too stubborn to listen. When we last left Tesla, he had sold the rights to his AC motor patent to George Westinghouse. And he's living the high life at Delmonico's with his 18 napkins, hanging out with Mark Twain. And a key turning point comes from a few years later. It's 1891, right? George Westinghouse is in a little bit of financial trouble. He thinks he can win. He thinks the Tesla motor stole the way. But, you know, cash flow, right? It's always the cash flow. Financial crisis, loans are getting called in.
50:58So Westinghouse goes to see Tesla in New York. And remember, Tesla's supposed to get a royalty on every single AC motor that Westinghouse sells. But at this point, they're still perfecting it. And Westinghouse says to Tesla, will you give up your royalties so I can keep control of my company and keep developing your motor? And Tesla, according to his autobiography, says to Westinghouse, Mr. Westinghouse, you will save your company so that you can develop my inventions. Here is your contract and here is my contract. I will tear both of them to pieces and you will no longer have any troubles from my royalties.
51:35And he tears the contract up. Again, because it's Tesla, I believe it. Legend, right? Iconic. And a huge mistake. A terrible, terrible mistake because Tesla would go on to come up with other ideas. He was apparently working on how to transmit electricity through the air, like to basically take the next leap beyond the grid. Built this giant tower out on Long Island, right? Looked like a mushroom. There are stories about, like, did he succeed? Like, did it actually happen? But it doesn't matter because the money wasn't there, right? None of his projects worked out. He wasn't making money. He had to move out of the Waldorf Astoria and into a cheaper hotel.
52:19Hotel New Yorker still stands. Room 3227. Not divisible by three, I checked. The last two numbers are, does that count? He was on such hard times that he couldn't even get a room divisible by three. He's like, do you have one two doors down? No. How about one door down the other way? There's a plaque on the hotel room door to this day. And in fact, if you go to the basement of the New Yorker hotel, you can see some of the personal effects that he left in this room. Which you have done, yes? I have done this. Would you leave anything interesting? No, it's just like knickknacks and pictures of him.
52:53Because at the time, like, he was still this famous genius. and even before a certain person would name his company after him Tesla like there was this Tesla cult and to this day you can go see Tesla Corner near Bryant Park in Manhattan you can see where his lab was fairly close to here I think in Midtown Manhattan you can go see his personal effects at the New Yorker Hotel there is still this like vibe of this poet genius who could have who maybe could have solved this next problem that wasn't solved. I will say that the last notable thing in Tesla's life is a pigeon. It was a homing pigeon, had a band on its leg, but Tesla had no idea where it came from or who had owned it.
53:41And it would come to visit him in his hotel room high above Manhattan on the west side. And so Tesla would start to feed this pigeon, and the bird would come and go, and this became the thing Tesla was focused on at the end. And eventually, like the pigeon stopped coming back and Tesla told his biographer, when that pigeon died, something went out of my life. I know. Up to that time, I knew with a certainty that I would complete my work no matter how ambitious my program. But when that something went out of my life, I knew my life's work was finished. That's sad, man. It's a sad end for a genius.
54:20And he died in 1943. Poor but not forgotten. So that's the end of the show today. I would recommend this book, Empires of Light by Jill Jones, two N's, which was, it's a great book all about this war of the currents. It was a key source for the show today. We'll be back next week with the last episode in our Edison series. That is the story of Edison and the movies. Bum, bum, bum, bum, bum, bum, bum, bum, bum, bum, bum, bum, bum, bum. Is that the Muppets? I don't know. That's my generic old-timey. Our showrunner is Ryan Dilley. Our producer is Gabriel Hunter Chang. And our engineer is Sarah Bruguer.
55:00I'm Jacob Goldstein. I'm Robert Smith. We'll be back next week with another episode of Business History. A show about the history of business. Robert Smith, as you know, there is nowhere in Pushkin's office to make a video, to make a video podcast, which is unfortunate. We tried, and it was described as two gray men in a gray box. And reasonably so. Fortunately for us, in an amazing coincidence, literally down the hall from Pushkin's office, there is the showroom of a company called Buzzy Space. This is a company, it's where we're sitting right now. And what they do is they design furniture and acoustic solutions that make, I'm reading here, workplaces more comfortable, more creative, and more fun.
55:41I would even say cozy. Their furniture is like sort of curved and interesting colors and I guess keeps things quiet. Yes. Honestly, I wish our office was this showroom. You can find more at Buzzy.space. That's B-U-Z-Z-I dot space. Did you ever notice how you spend hours shopping online only to pause at checkout because you wonder if you trusted enough to hit buy now? Agentic Commerce is testing that moment more than ever. That's where PayPal comes in. With 25 years of checkouts, 400 million consumer accounts globally, and the benefit of fraud protection. So no matter where a purchase starts, it ends with trust.
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From the publisher
Thomas Edison didn’t invent the lightbulb, but he created something more important: the grid. Edison's system of power plants and wires brought lightbulbs to homes and offices and revolutionized modern life.
Edison was adamant that direct current (DC) should power America, and attacked competitors who said that alternating current (AC) was better. This sparked a bitter war between Edison and his rivals - and prompted Edison to become involved in the first case of a murderer being sent to the electric chair.
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