Otis Singleton
The General Electric Company (GE) is an American multinational conglomerate founded in 1892. GE was born out of a merger between Thomas Edison's Edison Electric Company and the Thomson-Houston Electric Company, which was arranged by financier J.P. Morgan. Over the years, GE has had multiple divisions, including aerospace, energy, healthcare, lighting, locomotives, appliances, and finance. GE has a rich history of innovation, with employees Irving Langmuir and Ivar Giaever being awarded the Nobel Prize.
| Characteristics | Values |
|---|---|
| Year founded | 1892 |
| Founder(s) | Thomas Edison, Elihu Thomson, Ranald T. McDonald, Frank J. Sprague, Henry Villard, Samuel Insull, J.P. Morgan, Anthony J. Drexel |
| Founding place | Schenectady, New York |
| Type of company | American multinational conglomerate |
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What You'll Learn
Thomas Edison's involvement
Thomas Edison was a famous inventor and entrepreneur with business interests in many electricity-related companies, including the Edison Lamp Company, Edison Machine Works, Bergmann & Company, and the Edison Electric Light Company. In 1889, Edison's supporter and investor, Henry Villard, proposed to consolidate all of these business interests. This proposal was supported by other investors, and financing was provided by Drexel, Morgan & Co., a company founded by J.P. Morgan and Anthony J. Drexel. As a result, several of Edison's companies were merged under one corporation, which became known as General Electric.
Edison served as a figurehead on the board of directors of General Electric for a few years. During this time, he was involved in a war of currents with his rival, George Westinghouse. Edison believed that alternating current (AC) was unworkable and dangerous due to its high voltages. He stuck to using direct current (DC) in his designs, which put him at a disadvantage when Westinghouse successfully installed his first AC systems in 1886. Edison even made personal strikes against Westinghouse, stating that he would kill a customer within six months after installing an AC system. Despite Edison's efforts, he lost the "war of currents" when the organisers of the 1893 World's Fair in Chicago, also known as the World's Columbian Exposition, chose Westinghouse's AC system over Edison's DC transmission lines to power the fair's lighting displays. This fair was a significant event, as it showcased the first Ferris wheel, moving walkways, and Pabst Blue Ribbon beer, with the dazzling lights being a highlight for many visitors.
In 1893, Edison sold his stake in General Electric and invested the proceeds in an enterprise supplying iron ore to U.S. steelmakers. He paid close attention to detail, designing his own studded crushers to handle larger boulders fed by the world's largest steam shovel. Edison's involvement with mining began earlier in the late 1870s, when he tried to mine low-grade iron ore on the east coast of the United States. Despite the failure of his mining company, the Edison Ore Milling Company, he continued to pursue mining ventures and is credited with discovering the Falconbridge ore body in Canada.
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Elihu Thomson's role
Elihu Thomson was an inventor and one of the founders of the General Electric Company (GE). GE was born out of a merger between Thomas Edison's Edison Electric Company and the Thomson-Houston Electric Company in 1892. Thomson played a crucial role in the formation of GE by helping to establish the Thomson-Houston Electric Company, which later merged with Edison's company.
Elihu Thomson had a keen interest in electricity and was an early researcher and commercializer of X-rays following their discovery by Roentgen. He is known for developing the first X-ray system for General Electric, which featured a transformer in a wooden box and a gas-filled X-ray tube. Thomson was also involved in other innovations, such as the first large steam turbine produced by GE in 1903.
Thomson's contributions to the field of electricity were significant. He founded the Thomson-Houston Electric Company, which became a successful enterprise. The company's success led to its merger with Edison's company, creating what would become one of the largest companies in the world. Thomson's role in this process was instrumental in shaping the future of GE.
The Thomson-Houston Electric Company brought significant assets and capabilities to the merger. It had established itself as a prominent player in the electrical industry, with a strong focus on innovation and a wide range of products. The merger allowed the combined entity to leverage the strengths and resources of both companies, solidifying its position in the market and enabling further expansion.
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J.P. Morgan's financial backing
The General Electric Company (GE) was founded in 1892 through the merger of Thomas Edison's Edison Electric Company and the Thomson-Houston Electric Company. The merger was arranged by financier J.P. Morgan, who also backed Edison's lighting experiments through his company, Drexel, Morgan & Co.
Drexel, Morgan & Co. was founded by J.P. Morgan and Anthony J. Drexel. The company's involvement with Edison predated the formation of GE and demonstrates J.P. Morgan's long-standing interest in the electrification industry. In addition to J.P. Morgan, Edison also received support from Henry Villard, a long-time supporter and investor who proposed the consolidation of Edison's various business interests. Samuel Insull, who served as Edison's secretary and later financier, also played a role in advocating for the merger.
The financial backing provided by J.P. Morgan was instrumental in bringing together the complementary strengths of Edison's company and Thomson-Houston Electric. The merger created a powerful conglomerate that combined Edison's innovative spirit and patents with Thomson-Houston's operational expertise and market presence. This combination positioned GE for significant growth and influence in the electrification industry.
J.P. Morgan's support for GE extended beyond the initial merger. In 1896, GE became one of the original 12 companies listed on the newly formed Dow Jones Industrial Average, further enhancing its reputation and financial prospects. Additionally, GE established an industrial research laboratory in 1900, continuing the tradition of innovation that J.P. Morgan had helped foster. Over the years, GE diversified into various divisions, including aerospace, energy, healthcare, lighting, locomotives, appliances, and finance, solidifying its position as a leading American conglomerate.
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The company's early years
The General Electric Company (GE) was founded in 1892 through the merger of Edison General Electric Company and Thomson-Houston Electric Company. The company was incorporated in New York and headquartered in Boston.
In the years leading up to GE's formation, Thomas Edison had business interests in several electricity-related companies, including the Edison Lamp Company, Edison Machine Works, Bergmann & Company, and Edison Electric Light Company. In 1889, Drexel, Morgan & Co., a company founded by J.P. Morgan and Anthony J. Drexel, financed Edison's research and facilitated the merger of several of his companies under one corporation, forming the Edison General Electric Company.
Around the same time, Thomson-Houston Electric Company was also expanding. It was formed through the merger of American Electric Company, founded by Gerald Waldo Hart in 1880, and Thomson-Houston Electric Company, led by Charles Coffin.
Following the merger that created GE, the new company continued to grow and diversify. In 1893, GE purchased the business of Rudolf Eickemeyer, acquiring patents and designs related to transformers for electrical power transmission. In 1896, GE was listed on the newly formed Dow Jones Industrial Average, and it established its lighting division headquarters at Nela Park in East Cleveland, Ohio.
During the 1890s and 1900s, GE heavily invested in electric lighting, a sector that would bring immense long-term profits. This included the acquisition of the National Electric Lamp Association (NELA) in 1911. GE's early years also saw the establishment of research facilities, with Thomas Edison's new company creating the General Electric Research Laboratory in 1900.
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GE's research and development
Thomas Edison founded the General Electric Company (GE) in 1892. GE has a long history of innovation, with research and development being a key focus for the company since its inception.
GE's first research laboratory was established in Schenectady, New York, in 1900. Known as the General Electric Research Laboratory, it was the first of its kind and set a precedent for governments, universities, and rival companies. The Schenectady location was also where many of Edison's early electrical experiments took place.
Over the years, GE has expanded its research capabilities and diversified its areas of focus. The company has multiple research centres globally, including the John F. Welch Technology Centre in Bangalore, India, established in 2000, and the Advanced Manufacturing and Software Technology Center in Van Buren, Michigan, established in 2011.
GE Aerospace Research, formerly known as GE Research, is the research and development division of GE Aerospace. With over 800 researchers in 31 groups, GE Aerospace Research is committed to advancing the future of air travel. They work across three main organizations: Aero-Thermal & Mechanical Systems, Digital & Electrical Systems, and Materials & Manufacturing Technologies.
GE Vernova Advanced Research is another hub for innovation within GE, focusing on energy and sustainability. They aim to accelerate the transition to affordable and renewable energy, tackling challenges in decarbonization, electrification, and renewable energy solutions.
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Frequently asked questions
The General Electric Company (GE) was founded in 1892 by Thomas Edison.
Thomas Edison's company, Edison General Electric, merged with the Thomson-Houston Electric Company in 1892 to form GE.
Elihu Thomson founded the Thomson-Houston Electric Company.
GE was formed through the merger of Edison General Electric and Thomson-Houston Electric Company, as well as the acquisition of assets from two other electrical companies.
Thomas Edison had business interests in several electricity-related companies, including the Edison Lamp Company, Edison Machine Works, Bergmann & Company, and the Edison Electric Light Company.
