J.P. Morgan's Merger Creates Dominant Force in Electrical Industry

Financier J.P. Morgan facilitated a merger between Edison General Electric and Thomson-Houston Company, creating General Electric. This merger consolidated control over three-quarters of the U.S. electrical business. General Electric emerged as a dominant force in the electrical industry, influencing the landscape of power distribution. Before the merger, the War of Currents was a major conflict in the electrical industry. The direct current (DC) systems, championed by Thomas Edison, competed against alternating current (AC) systems, promoted by George Westinghouse and Nikola Tesla. This rivalry created significant tension and competition within the industry. Thomson-Houston, with its strong AC technology portfolio, combined with Edison General Electric, which was known for its DC systems. The merger effectively ended the War of Currents by merging the strengths of both technologies under one company. This integration allowed General Electric to leverage AC technology's advantages, leading to widespread adoption of AC systems across the country. The consolidation also led to significant advancements and standardization in electrical infrastructure. General Electric's dominance facilitated consistent and reliable power distribution, which spurred industrial growth and technological progress. With J.P. Morgan's financial acumen and Thomas Edison's innovative spirit, General Electric positioned itself as a critical player in the industrial revolution and the development of modern electrical systems. General Electric's formation marked a pivotal shift in the electrical industry, streamlining operations and fostering innovation. It set the stage for technological advancements and the ubiquitous presence of electricity in everyday life, laying the foundation for future progress. #JPMorgan #ThomasEdison #ElectricalIndustry #WarOfCurrents #IndustrialRevolution #Innovation #GeneralElectric #MoofLife