Molly Ayala
General Electric (GE), one of the most iconic American companies, was founded in 1892 in New York. The company was founded by Thomas Edison, who consolidated his various electricity-related business interests, including the Edison Electric Light Company, with financial backing from J.P. Morgan and the Vanderbilt family. Over the years, GE has had multiple divisions, including aerospace, transportation, energy, healthcare, and lighting, and has been responsible for numerous innovations, such as the creation of the first jet engine in America and the introduction of the most popular jet engine in history, the J-47. The company has also faced challenges, including a significant decline in value following the 2008 financial crisis and criticism for its role in creating toxic waste.
| Characteristics | Values |
|---|---|
| Name of the person who oversaw the creation of General Electric | Gerard Swope |
| Year of creation | 1892 |
| Founder | Thomas Edison |
| Founder's business interests | Edison Lamp Company, Edison Machine Works, Bergmann & Company, Edison Electric Light Company |
| Other companies that merged with Edison's company to form General Electric | Thomson-Houston Company, two other electrical enterprises |
| Company that financed Edison's research and helped with the merger | Drexel, Morgan & Co. |
| Founder of Drexel, Morgan & Co. | J.P. Morgan and Anthony J. Drexel |
| Company that acquired General Electric in 2001 | Forbes |
| CEO who brought about significant growth and development | Jack Welch |
| Year General Electric was ranked 33rd largest firm in the US | 2020 |
| Year General Electric was ranked 64th in Forbes Global 2000 | 2023 |
Explore related products
What You'll Learn
Thomas Edison founded the company in 1892
Thomas Edison founded General Electric (GE) in 1892. GE is an American multinational conglomerate, which was incorporated in the state of New York and headquartered in Boston. Edison had business interests in many 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 helped merge several of his separate companies under one corporation. This corporation was called Edison General Electric, and it joined with two other companies in 1892 to form GE.
GE has been synonymous with innovation, technological advancements, and industry leadership worldwide. Over the years, the company has had multiple divisions, including aerospace, transportation, energy, healthcare, lighting, locomotives, appliances, and finance. The company has survived and initiated revolutions across industries, technologies, and managerial practices.
GE has a history of innovation, including the creation of the first jet engine in America, the G.E. 1-A, and the most popular jet engine in history, the J-47. The company also developed a 30-ton electric locomotive that could reach 30 miles per hour without the use of steam power. In addition, GE began manufacturing electric-powered home appliances, such as the first electric stove and the first electric clothes washer and refrigerator.
Under the leadership of Jack Welch, GE underwent significant growth and development, earning him a reputation as one of the most esteemed CEOs in American business history. Welch expanded the company into media and Wall Street, and during his tenure, GE's market capitalization surpassed $410 billion. The company ranked among the Fortune 500 as the 33rd largest firm in the United States by gross revenue in 2020.
Building an Electric State: A DarkRP Guide
You may want to see also
Explore related products
Drexel, Morgan & Co. financed Edison's research
In 1889, Thomas Edison had business interests in several electricity-related companies, including the Edison Lamp Company, the Edison Machine Works, Bergmann & Company, and the Edison Electric Light Company. Edison's lighting experiments were backed by J.P. Morgan and the Vanderbilt family. Henry Villard, a long-time Edison supporter and investor, proposed to consolidate all of Edison's business interests. This proposal was supported by Samuel Insull, Edison's secretary and financier, and other investors.
In 1889, Drexel, Morgan & Co.—a company founded by J. P. Morgan and Anthony J. Drexel—financed Edison's research and helped merge several of his separate companies under one corporation. Drexel, Morgan & Co. was founded in 1871 and became the predominant source of U.S. government financing. The firm was reorganized as J.P. Morgan & Co. in 1895, two years after Drexel's death, and became one of the most powerful banking houses in the world.
The merger of Edison's companies with the Thomson-Houston Electric Company in 1892 formed the General Electric Company, which became the dominant electrical-equipment manufacturing firm in the United States. General Electric mirrored the growth of industrial America from the steam age to the age of electricity and beyond. The company ranked among the Fortune 500 as the 33rd largest firm in the United States by gross revenue in 2020.
Quick Guide: Starting Remington Electric Pole Saw
You may want to see also
Explore related products
Frank Sprague oversaw challenging utility installations
Frank Sprague, born in 1857, was a graduate of the U.S. Naval Academy. He developed an interest in electricity while serving in the Navy, and in 1883, he left to work as a technical assistant to Thomas Edison. Sprague oversaw some of Edison's challenging utility installations and introduced mathematical methods to Edison's design process. He helped with the installation of Edison's groundbreaking three-wire electrical light systems and made improvements to the inventor's power distribution system.
One of the challenging installations Sprague oversaw was the installation of new electric grids in Sunbury, Pennsylvania, and Brockton, Massachusetts. Here, he demonstrated his expertise by guiding Edison's men on using mathematical calculations to determine the size of wiring needed to serve the demand on a given electric grid. Sprague's technical training and mathematical skills stood in contrast to Edison's method of endless experimentation.
Another challenging project that Sprague took on was the installation of an electric rail system in Richmond, Virginia, in 1887. This project was particularly demanding due to the steep grades, sharp turns, unpaved streets, and clay soil of Richmond's topography. However, Sprague successfully designed, tested, and deployed everything needed for the system, including the overhead wire system and the attachment of motors to the axles of the cars. The Richmond installation proved the efficiency, safety, and financial viability of an electric-powered street rail service, and it served as a model for other cities to follow.
In addition to these projects, Sprague also played a significant role in the electrification of vertical transportation systems. In 1891, he formed the Sprague Electric Elevator Company, which made groundbreaking advancements in elevator technology. One notable achievement was the development of a system that could simultaneously control multiple electric elevators from a single central control.
Sprague's contributions to the field of electricity and transportation were extensive, and he continued to innovate until his death in 1934.
Understanding PGE's Peak Hours for Electricity Rates
You may want to see also
Explore related products
Samuel Insull supported the proposal to consolidate Edison's interests
In 1889, 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. Henry Villard, a long-time Edison supporter and investor, proposed to consolidate all of these business interests. The proposal was supported by Samuel Insull, who served as Edison's secretary and later his financier, along with other investors. Insull recognised the potential of consolidating Edison's companies and played a significant role in making it a reality.
Insull's support for the proposal stemmed from his understanding of the business opportunities presented by the consolidation. He recognised that unifying Edison's companies would create a stronger, more diversified entity. By merging Edison's separate companies under one corporation, they could streamline operations, pool resources, and benefit from economies of scale. This would likely lead to increased profitability and a stronger position in the market. Insull, known for his aggressive business acumen, saw the potential for financial gains and the expansion of Edison's empire.
Additionally, Insull had a personal interest in the proposal. As someone who had worked closely with Edison for many years, he understood Edison's inventions and the potential of his electricity-related companies. Insull had been Edison's business manager for 12 years, and during this time, he focused on monetising Edison's inventions. By supporting the consolidation, Insull could continue to play a pivotal role in shaping and profiting from Edison's enterprises.
Furthermore, Insull had experience in the electricity industry and consolidating businesses. Prior to the proposal, Insull had been involved in efforts to unify Chicago's "L" system, which involved consolidating several elevated railway companies. Insull's involvement in these endeavours demonstrated his commitment to consolidation and his belief in its benefits. He understood the complexities of the industry and the potential synergies that could be achieved by merging complementary businesses.
The support of Samuel Insull was instrumental in the successful consolidation of Edison's interests. Following the proposal, Drexel, Morgan & Co., a company founded by J. P. Morgan and Anthony J. Drexel, provided the financial backing to merge several of Edison's companies. This resulted in the formation of the Edison General Electric Company, incorporated in New York on April 24, 1889. The new company continued to grow, acquiring the Sprague Electric Railway & Motor Company in the same year. Insull's role in this process solidified his position as a key player in the world of utilities and set the stage for his future endeavours.
Baking Brownies in an Electric Oven: A Simple Guide
You may want to see also
Explore related products
Elihu Thomson's Thomson-Houston company merged with Edison's
Elihu Thomson was an English-American engineer and inventor who played a crucial role in the establishment of significant electrical companies in the United States, the United Kingdom, and France. He was born in Manchester, England, in 1853, but his family relocated to Philadelphia in the United States in 1858. After graduating from Central High School in Philadelphia in 1870, he pursued a career in electrical engineering and, along with Edwin J. Houston, founded the Thomson-Houston Electric Company in 1879.
Thomson's early work with dynamos, arc lamps, and alternating-current power established him as one of the top inventors of the late 19th century. He was also a pioneer in the field of electric light and power, with inventions such as an arc-lighting system, an automatically regulated three-coil dynamo, a magnetic lightning arrester, and a local power transformer. By 1892, under the leadership of Thomson and others, the Thomson-Houston company had grown significantly, achieving sales of $10,000,000 and employing 4,000 people.
In 1892, Thomson's Thomson-Houston company merged with Thomas Edison's General Electric Company, forming the General Electric Company (GE). This merger was facilitated by John Pierpoint Morgan. The newly formed GE became one of the most prominent conglomerates in the United States, mirroring the country's transition from the steam age to the age of electricity. GE continued to grow and diversify, eventually ranking among the largest firms in the United States by gross revenue in 2020.
Following the merger, Elihu Thomson chose to maintain his laboratory in Lynn, Massachusetts, separate from GE's New York headquarters, to maintain control over his research. He worked closely with Edwin Rice, who later became GE's president in 1913, and other prominent engineers. Thomson held numerous patents, with some sources estimating over 700, and he was recognised for his contributions to electrical science and engineering, receiving awards such as the Edison Medal in 1909.
The Electric Chair: States' Adoption of a Controversial Method
You may want to see also
Frequently asked questions
General Electric was founded by Thomas Edison in 1892.
The company was founded to promote Edison's incandescent light bulb and other products.
Drexel, Morgan & Co. financed Edison's research and helped merge several of his separate companies under one corporation.
These companies included Edison Lamp Company, Edison Machine Works, Bergmann & Company, and Edison Electric Light Company.
Henry Villard, a long-time Edison supporter and investor, proposed to consolidate Edison's various business interests. Samuel Insull, Edison's secretary and financier, supported the proposal. Elihu Thomson's Thomson-Houston company also merged with Edison's company in 1892.
