When Continental Edison manager Charles Batchelor returned to New York City in 1884, he brought along with him twenty-eight-year-old Serbian engineer Nikola Tesla. Batchelor had been abroad for years, first to oversee the Edison Telephone Company expansions in London in 1879 and then to install electrical lighting in Paris in 1881. While in Paris, Batchelor had hired a brilliant young dropout, Tesla, who had been recommended by Tivadar Puskas, who had and suggested the telephone exchange (an invention later built by the Bell Company from his designs). Puskas also suggested Tesla work for Batchelor as he was hungry to tinker and make improvements on electrical devices and already outgrowing his electrician job in Budapest. Batchelor was impressed with Tesla's skills in physics and soon set him to designing new equipment as well as troubleshooting difficult pieces of equipment.
Tesla came to New York to continue his troubleshooting and design position in the Edison Machine Works. The shop was notoriously crowded, loud, and hot, but Tesla threw himself into his work with a decent pay of $18/week. It was here Tesla first met his hero, Thomas Edison. Tesla had pulled an all-nighter repairing dynamos aboard the SS Oregon, completing a task that many thought impossible as the equipment had been installed during ship's construction. When the two men saw Tesla walking down Fifth Avenue at five in the morning toward the shop as they were heading home, Edison had, "Here is our Parisian running around at night." Tesla explained that he had not been out on the town but instead working and now headed back for more work, and Edison met him with a silent look. As the men went their different ways, Tesla overhead Edison comment, "Batchelor, this is a damn good man." Tesla then worked ever harder, with regular hours from 10:30 AM to 5:00 AM for an 18+ hour workday. Edison told Tesla, "I have had many hard-working assistants, but you take the cake."
Edison nearly lost his man when a manager promised a whopping $50,000 award (~$1.6 million today) if Tesla could design 24 different types of standard machines, making improvements to DC generators and arc lighting. When Tesla showed the improvements, the manager refused to give him the award, saying it had been a joke and Tesla didn't "understand American humor." Tesla complained, although Batchelor was already notoriously stingy and did not have anything like the kind of cash needed to pay such an award. Tesla might have quit, but Edison himself arrived to soothe his wounded pride with promises of payments in installments over years to come. He took Tesla back with him to Menlo Park, thinking that if the young genius could rise to the challenge of sorting out DC generators, there might be no limit to his insights with the right prompting.
Tesla proved to be the workhorse Edison had dreamed. The two frequently bickered, especially about alternating current and direct current as it came to bringing power to increasingly electrified cities. Tesla argued for transmitting power from large power stations using alternating current, a generator he had invented in 1888 (Edison put both names on the patent). Edison preferred DC with localized generators, despite the massive power loss as it was transmitted only a few blocks. Ultimately Tesla won out as investors sought to build expansive power generators utilizing the forces of nature, namely Niagara Falls. Edison liked the idea of a larger initial investment not needing to pay for fuel, just upkeep. He challenged Tesla to improve transmission even more, which Tesla completed with a "free energy" broadcast through the air itself.
The term "free energy" was not part of Edison's business-mindedness, but demonstrations at the 1893 Columbian Exposition in Chicago showed bulbs lit up without cumbersome wires. Newspapers marveled, and Edison knew good press. He soon began courting city councils with the offer of electrifying an entire area with enough power for public lighting and home machines, paid for by contracts with the Edison companies, which in turn would be paid by taxes. Facilities with larger power needs like factories would have to have their own power stations, likely Edison DC generators. St. Louis became the first "air-electrified" city in the world for its Louisiana Purchase Exposition in 1904. While anyone with the proper wires could simply tap into the broadcast energy, Edison's legal teams were quick to sue anyone who infringed on the broad patents they used to keep "electro-pirates" from thieving free energy. This put the lawyers into practice for lawsuits against Guglielmo Marconi in wireless telegraphy, creating such a quagmire that the Edison Wireless Telegraph Company gained the upper hand in radio worldwide.
By this time, Tesla was already dreaming of free energy anywhere on Earth broadcast through the ionosphere, so Edison put him to a different task to keep him occupied. Edison had overtaken the motion picture industry in the US, but he was frustrated by the costly film needed to record images chemically. His phonograph had won him great praise as the "Wizard of Menlo Park" in 1877, so he challenged Tesla to find a way to record electrically. Magnetic recording had already been done with sound by Danish engineer Valdemar Poulsen in 1898 with a wire recorder on the telegraphone, but images were a monumental task. The task required Tesla to invent a slew of new inventions for an electric camera as well as a projector to reinterpret the recordings. These inventions brought in millions for Edison, who was careful to share enough cash and, more importantly, credit with Tesla to keep him loyal.
When Edison died in 1931 at age 84, the world was very different from the wood-fire-and-candle society he had been born into. People used electricity to light, heat, cool, and operate their homes. They could turn on appliances by radio remote control while they placed televisual calls to family members hundreds of miles away, all without wires in cities that boasted broadcast energy. Outside of electrified zones, most people either passed through on trains with their own wireless broadcast or lived on farms or in villages with smaller, localized generators frequently operated by solar power. Edison's massive corporate holdings even survived the days of Trust-Busting thanks to patents protecting his many products for decades. Rents in free-energy cities skyrocketed, leading to extensive social turmoil as employment rates dropped due to automation.
Tesla spent his last years working away in Edison's laboratory in West Orange to develop automation. He felt that electrical recording had great potential in "switches" following "dockets" of different tasks. Soon his work on "processor" machines would revolutionize the world again with Edison Automations rivaled only by companies like International Business Machines and Electronic Control Company in creating handheld computing devices for work and play. He died in 1943, and many obituaries in the newspaper commented on who the true "wizard" was.
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In reality, Tesla quit. One long sentence stretched in his diary from December 7, 1884, to January 4, 1885, "Good by Edison Machine Works." He went on to meet other investors, who helped found the Tesla Electric Lighting & Manufacturing Company. Some versions of the "$50,000 joke" story attribute it to Edison himself, although Tesla maintained it was a manager.
(Quotes from Nikola Tesla's autobiography, My Inventions.)
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