Episode Five: J.P. Morgan

Born in a banking family, needed to live up to his father’s high expectations.

There was only one way to do business: the Morgan way

As a child, J.P. would balance checkbooks. He worked very hard, but his father continued to push him.

He and his father had a strained relationship. However, he understood the game and wanted to be even more successful than his father.

J.P. Morgan’s claim to fame was buying out businesses and “morganizing” them.

J.P.’s dad always told him to never take risks. BUT…if he wanted to build an empire from the ground up, he HAD to take risks.

And he knew just who to team up with in order to build his first empire...

Episode Five: Thomas Edison

Invents the lightbulb (the word “light bulb” can be either one or two words)—J.P. Morgan sees the potential in the new technology immediately.

He knows this is his chance to create a legacy away from his father. He wanted to build a business from the ground up, not just buy out someone else.

America is the most rapidly growing country—rail, oil, steel—and now light. Electricity.

He did not work as hard on any other invention than he did with electricity.

Morgan has Edison install lightbulbs in his New York City home on Fifth Avenue.

Morgan’s home turns into a lab—4,000 feet of wiring used.

Thomas Edison creates DC power—safe and efficient.

Morgan invited his father to see the display of lights, but his dad is unimpressed. Where Morgan sees opportunity, his father sees risk.

Obviously, Rockefeller is not too happy with electricity. Morgan, on the other hand, wants to wire all the homes in New York City.

Rockefeller launches a campaign to show electricity is dangerous. Edison would later launch a similar campaign against Tesla to prove AC power was dangerous.

Tesla, who worked for Edison, invented AC currect. (alternating current vs. direct current)

Tesla is obsessed with electricity and is a total fanboy of Edison. He saw him as a hero, but later left Edison to pursue his dream of having his own company. (Edison was kind of mean to him, you could say…)

WESTINGHOUSE takes Tesla on the road to show the awesomeness of AC power.

George Westinghouse and Morgan/Edison became adversaries due to Edison’s love of all things DC current. Westinghouse/Tesla loved all things AC.

The men found themselves in a war that ended with a deal of the Niagara Falls Power Plant. Westinghouse/Tesla won. AC power would become the norm.

J.P. Morgan feels he will always live under his father’s shadow. He made a mistake backing Edison. And he dissolves their ties together, going after Westinghouse.

J.P. gets Westinghouse to sign over the patents to AC power.

Edison General Electric’s name is changed to General Electric.

GE is owned by J.P. Morgan and converts everything to AC power.

Electricity is the mainstream and Rockefeller is depressed. (I mean, I’m sure he still had the hipsters buying kerosene..)

HOWEVER, Rockefeller DOES NOT give up! He knows there’s something he could use that will make him even more ridiculous amounts of money.

….Gasoline. It will power the horseless carriage.

GE will go on to be one of America’s greatest corporations. Power keeps growing and rivals are forced to adjust.

Morgan builds power stations from coast to coast. Electricity is available to the masses.

He eventually bails out the federal government (3 billion of today’s dollars)…J.P. Morgan is almost like the Bank of America. (See what I did there?)