Extracted By Etcohod
- NARRATOR: Previously, on "The Men Who Built America:"
The country has bounced back from a long civil war,
and is now stronger than ever.
Cornelius Vanderbilt used brute force
and intimidation to build a railroad empire
that unites the country.
John D. Rockefeller rose from humble beginnings,
and with complete confidence and ruthlessness,
created a total monopoly of the oil industry.
Then, a new product transformed the American landscape.
- CARNEGIE: I am convinced that steel is the future.
- NARRATOR: And thanks to Andrew Carnegie's steel,
America's cities now reach the sky.
- Nothing's impossible.
- NARRATOR: But after his name is linked
to one of the worst disasters in American history,
Carnegie's empire begins to fray.
His chairman, Henry Frick, pushes his workers
to the breaking point...
- (explosion)
- (man screaming)
- NARRATOR: ...causing them to fight back...
- MAN: All of those in favor of striking,
raise your hands.
- (crowd cheering)
- NARRATOR: ...barricading Carnegie Steel's flagship plant,
and when Frick decides to take it back by force...
- Fire!
- NARRATOR: ... an attempt is made on his life.
- Mr. Frick!
- (gunshot)
- NARRATOR: Andrew Carnegie is forced
to rethink everything.
- (Blues Saraceno playing "Save My Soul")
♪ When I got to Memphis ♪
♪ To put my ol' baby down ♪
♪ He said, "I can't take you to Heaven" ♪
♪ "I can't save your soul" ♪
♪ "I can't promise forever" ♪
♪ Whoa, yeah, got my heart in your hands ♪
♪ I can't feel ♪
♪ Feel my soul ♪
- NARRATOR: With his chairman shot,
and his workers rebelling, Andrew Carnegie's back
is against the wall.
His company-- and his reputation--
are under threat.
And the empire he spent a lifetime building
is on the verge of collapse.
Hoping to salvage his legacy,
Carnegie cuts short his trip abroad,
and returns to Pittsburgh.
- (ship horn blows)
- (bell tolls)
- NARRATOR: Henry Frick survives the attempt on his life.
- FRICK: Ahh!
- NARRATOR: Only three days after being shot and stabbed,
he's back in his office at Carnegie Steel.
- (grunting)
- NARRATOR: Frick's brush with death only
strengthens his resolve.
But for his boss, Andrew Carnegie,
it's a reminder that his chairman is a liability.
- DAVID NASAW: There came a time when Frick
thought to himself, "I'm running this business.
I'm the one in Pittsburgh.
I'm the one working the twelve-hour days.
I'm the one taking the bullet in the head.
I deserve to be number one."
- NARRATOR: Carnegie's relationship with Frick
deteriorates,
and he realizes he needs to make a change.
- DAVID NASAW: Carnegie isn't happy.
He whispers to newspaper reporters in Pittsburgh
that if he had have been around,
it would've been different.
That there wouldn't have been this bloodshed.
That he had more respect for the workers.
And he undercuts Frick.
- NARRATOR: But Frick refuses to accept
any responsibility.
Outraged that Carnegie has hung him out to dry,
he even goes behind his back and attempts
to orchestrate a hostile takeover.
Carnegie Steel is eroding from the inside out.
But the biggest challenge to Carnegie's empire
isn't coming from within.
A new threat is emerging.
J.P. Morgan is a banker,
who's made a fortune consolidating broken industries,
buying out failing companies,
and returning them to profitability.
Companies like Carnegie Steel.
- DONALD TRUMP: You look at J.P. Morgan,
the way he controlled the banks.
Basically he's one man who just literally dominated
the banking industry, and, essentially,
dominated financing in the country.
- NARRATOR: Morgan most recently consolidated
parts of the broken railroad industry,
making them profitable
by eliminating unnecessary competition.
- We need an answer. - We'll win this war.
- (rapping on table) - You wanna come to war?
- I've heard enough.
This is what's going to happen.
There's going to be an end to this war.
The Morgan Bank will buy the West Shore
and lease it to the Central.
They'll also buy the central stake in the South
Pennsylvania in exchange for a share in other railroads.
- MAURY KLEIN: He excelled at taking warring parties,
who were destroying an industry,
and bringing peace on terms that were suitable to them,
profitable to him,
and which gave him leverage in the business itself.
Anyone who knew anything about him realized that,
like him or not, he got things done.
- NARRATOR: Due to Frick's callousness,
Andrew Carnegie fears he might become Morgan's next target.
He makes a bold move.
One that's become all but inevitable.
- (knocking)
- Andy?
- CARNEGIE: Henry. How are you?
- Fine. - CARNEGIE: Good.
The board of managers met yesterday.
- I was unaware.
- CARNEGIE: The board has decided that it's best
if Carnegie Steel invoked the provision
of their agreement with you.
You will have to surrender your interest in the company.
You will, of course, receive full compensation
at book value.
- Carnegie!
- (pounding)
- FRICK: Carnegie!
- (toilet flushing)
- NARRATOR: As Carnegie struggles to repair
his broken empire,
J.P. Morgan continues to target failing companies,
working alongside his legendary father.
Junius Morgan is the founder
of one of the world's first modern investment banks,
a financial empire that will come to be known
as the House of Morgan.
- H.W. BRANDS: J.P. Morgan was born
into the banking business.
His father was one of the first generation
of trans-Atlantic bankers, and as a result
he identified finance as the industry
that was going to command all other industries.
- NARRATOR: From the time he could count,
J.P. is taught there is only one way to do business:
the Morgan way.
Investing other people's money
to make a fortune for yourself.
- I will return tonight.
See that these accounts balance by then.
- JENNIFER TONKOVICH: Morgan's father
had a controlling presence.
Junius really didn't sort of take his eye off Morgan
for so many years.
It was very difficult for him to bear.
- Go ahead. Open it.
Now pick it up. Feel the weight.
You know what that is?
That's what it feels like to hold a million dollars.
Now,
learn to earn it yourself.
- NARRATOR: J.P. Morgan's strained relationship
with his father continues.
And by age forty, he's looking to create
an identity of his own.
- Is all this furniture really necessary?
- That painting's four hundred years old.
- Yes, sir.
- I don't see why you feel the need
to pillage Europe of its art.
- I bought a few paintings, Father,
not a whole gallery.
- The bank of England have asked me to handle
their next bond issue, so I'm assuming
you're accompanying me back to London?
- I have plenty of work to do here.
- Just remember where our loyalties lie, Pierpont.
- I'll try not to forget.
- Let me know how you get on.
I'll leave you in peace to arrange your paintings.
- H.W. BRANDS: J.P.
Morgan understood the game,
and at some point he realized that,
as successful as his father had been,
he could become even more successful.
- NARRATOR: Morgan's father always taught him
to avoid taking big risks,
but J.P.Morgan is tired of doing things his father's way.
He doesn't want to simply buy businesses,
he wants to build them from the ground up.
He's watched as John Rockefeller and Andrew Carnegie
have built empires from nothing,
and he wants to be next.
But to do that, Morgan needs to find
an innovation to call his own.
He sets his sights on one of the world's most famous inventors.
Thomas Edison has been a renowned innovator
since the age of nineteen.
He first made his name by perfecting the telegraph
before going on to invent the stock ticker,
and the phonograph.
In his lifetime, Edison will secure
over one thousand patents.
But now, at thirty-one, Edison is on the verge
of his greatest innovation yet.
- RICHARD PARSONS: Edison had that unique ability
to sort of look at this thing,
then figure out how to use it in a way
that no one had thought of to use it before.
- So this is where genius resides.
- "Genius is eternal patience."
- Michelangelo.
- NARRATOR: One invention catches Morgan's eye:
the light bulb, and the electricity that powers it.
- A stream of invisible energy that heat
tiny filaments in the bulbs that like magic,
make them glow.
- NARRATOR: Electric light will revolutionize the world.
Like fire, or the wheel, it will transform human existence.
J.P. Morgan sees the potential in the revolutionary new
technology immediately,
and knows it's his chance
to create his own legacy.
One that will change the world forever.
As the turn of the twentieth century
approaches, America is the most rapidly growing
country on earth.
Rail,
oil,
and steel
have driven the expansion.
But a new technology is emerging
that may be even more powerful.
Electricity has the potential
to completely change the world,
and J.P.Morgan sees it as something he can own.
- RUSSELL SIMMONS: Most people are too busy
looking on the outside to really check
what their barometers say inside,
so as an entrepreneur,
if you look inside, you'll find things
that they all need that could become immensely popular,
if someone had the courage to promote.
Or to build it.
- NARRATOR: For years,
J.P.Morgan has lived in the long shadow
of his legendary father.
He's desperate for a way to make his own mark,
and electricity might be it.
Morgan is considering an investment in Thomas
Edison's company, and his newly-developed
electric light bulb.
He hires Edison to install electric lighting in his
home on Fifth Avenue, in New York.
- Sometimes you've got to take ownership.
They call it "eating your own dog food", right?
If you aren't willing to use your own product,
then how is anybody else going to trust it and have confidence?
You know, some people might call that being
a showman, I call it demonstrating trust
in your product, which any smart business has to do.
- NARRATOR: The Morgan home quickly turns
into a laboratory for Thomas Edison's
famous electric experiments.
Edison installs a small power plant in a shed
on Morgan's property.
He then runs four thousand feet of wiring through
the walls and ceilings of the house,
and installs nearly four hundred electric light bulbs,
some of the first to ever be manufactured.
After months of trial and error,
the home is ready to be displayed.
- JERRY WEINTRAUB: When I believe in something,
and I want to sell it to somebody,
I want to put it in the best light.
I don't just package it, I creatively package it.
- NARRATOR: Morgan invites many--including his father--
to see the marvel of electric lighting
for the first time,
knowing the demonstration will put him
at the forefront of a new industry.
- Ladies and gentlemen,
behold the miracle of modern science.
The gas lamp is dead.
Long live the electric light.
- (click)
- (laughing)
- (applause)
- Every light you see is powered by electricity.
There is no gas, no oil, no flame.
Just a invisible stream of energy.
- JILL JONNES: Electricity was viewed
as something miraculous, and people were amazed.
First of all, they didn't understand how it worked,
because you can't see electricity,
and so it was viewed as something almost magical
by most people.
- NARRATOR: J.P. Morgan's home
is the first private residence in the world
to be lit with electricity.
- Well Father, what do you think?
- You disappoint me, Pierpont.
I thought you knew better.
- This is the future.
- This is the stuff of carnivals and fairs.
And you've been played for a fool.
- NARRATOR: Despite his father's disappointment,
Morgan's event is a success.
- You're about to become a very busy man.
Darius Ogden Mills wants you to electrify his home.
- He'll have to wait.
The Vanderbilt family's next on my list.
- NARRATOR: Electricity becomes a must-have
for the country's elite,
with one notable exception,
John D. Rockefeller.
Rockefeller has created the largest fortune
in America by refining oil for kerosene lamps.
He realizes electric light has the potential
to replace kerosene as America's primary light source.
If the technology goes mainstream,
Rockefeller will face his biggest challenge ever.
Following the success of his home lighting display,
Morgan believes that electricity could be
the opportunity he's been waiting for,
his chance to control a new business from its start,
and become a pioneer like Carnegie and Rockefeller.
But investing in Edison goes against everything
J.P. Morgan's father has ever taught him.
- DONNY DEUTSCH: You have to be able to take risk.
You can't have greatness in anything without
putting it on the line.
Otherwise, everybody would have it.
If there was no apparent loss,
if there was no chance of tremendous failure
or tremendous setback, you can't have the upside.
- To what do I owe the pleasure, Mr. Morgan?
- There's a noise in the basement.
It's upsetting my wife.
- It's the generator.
I'll send someone around to soundproof it.
- (toy train whirs)
- JUNIUS MORGAN: You disappoint me, Pierpont.
I thought you knew better.
- J.P. MORGAN: This is the future.
- JUNIUS MORGAN: This is the stuff of carnivals and fairs.
And you've been played for a fool.
- How much competition do you have, Edison?
- Nothing worthy of note.
You know, if you could help me raise money
to install a central power station,
there'd be no need to have a generator
in your basement.
I could power anything within a half-mile radius.
- What would it take to light all the homes in New York City?
- I'd need a network of power stations.
- J.P. MORGAN: What would the cost be?
- EDISON: I'll have to go through my figures.
- Bring them to me Monday morning.
That model train set-- powered by electricity?
- Yes.
- I want one for my daughter's birthday next week.
- NARRATOR: For Morgan, the potential reward is too great.
Against his father's advice,
he invests everything in electricity,
determined to create his own legacy,
even if it means going against everything
he's ever been taught.
America is undergoing amazing changes.
Steel is building futuristic cities
of unimaginable height, and kerosene is lighting homes
across the country.
But, a magical new innovation is emerging,
and J.P. Morgan is determined to bring it to the world.
- (laughter and applause)
- NARRATOR: Electricity has captured
the public's imagination, but the technology is
still unproven, and virtually unused.
But partnered with Thomas Edison, J.P. Morgan
is convinced he can bring electricity
to the entire country.
- There is no success without risk taking,
and I think that is actually what distinguishes
the captains of industry from others.
- NARRATOR: Morgan gives Edison what amounts
to eighty-three million dollars today,
and together they form a new business,
the Edison Electric Light Company.
Funding Edison is a huge risk for Morgan,
and goes against everything his father taught him.
For years, Morgan was instructed to avoid
investing in new and unproven industries.
But where his father sees risk,
J.P. Morgan sees opportunity.
- STEVE CASE: I think what's great
about the truly transformative inventions
and the entrepreneurial ideas that really end up having
a significant impact is they start relatively small
and most people don't quite understand
even what you're talking about, and they take some time
before they get traction, but eventually they break
through and the impact's far broader than anybody,
you know, could have imagined.
- NARRATOR: Morgan and Edison get right to work,
transforming a building in Lower Manhattan
into the world's first central power station,
a high-tech wonder filled with massive generators
capable of lighting thousands of homes.
- The idea was that from this central station
would flow all this direct current,
but it also meant that it had to be transmitted.
- MAURY KLEIN: The future of electricity
wasn't just illumination.
It was power, and power required transmission
over long distance.
- NARRATOR: Edison's workers labor day and night,
digging a network of ditches over fifteen miles long.
They lay over one hundred thousand feet of thick
copper wire, connecting Edison's power station
to hundreds of homes and businesses throughout New York.
Edison's power grid becomes the model for how electricity
is transmitted in the United States.
- JILL JONNES: He had never worked so long
and so hard at any invention to make it functional
as he did with electricity.
- NARRATOR: With Edison's power station up and running,
a new era dawns.
The city lights up for the first time ever.
And soon, Edison's power grid covers half of Manhattan.
Electric streetlights line avenues,
and homes throughout New York are buzzing with electricity.
- JIM CRAMER: Edison had a big think approach
which said that, "We can build giant distribution centers
and make it so that electricity is cheap
enough for the masses."
What a brilliant idea.
- NARRATOR: J.P. Morgan
and Thomas Edison stand to make a fortune.
But their success is bad news
for the most powerful man in the country.
Until now, John Rockefeller has been
virtually unchallenged while providing light
to homes from coast to coast.
But as Edison's power grid expands over a greater
and greater area, he realizes his kerosene empire is at risk.
Every home Edison wires with electricity
is a lost customer for John Rockefeller.
- The great titans of the late 1800s,
like Rockefeller, they tended to be very ruthless.
They were interested in dominating the market,
and moved in every way they could to get as big
a chunk of the market as they could in order to
ensure their own profits.
- JIM CRAMER: The industrialists
of that time are naked capitalists.
They absolutely wanted to get rich,
and they wanted to build something that lasted.
Rockefeller wanted Standard Oil
to be the greatest oil company in the world.
- NARRATOR: Rockefeller launches a targeted
campaign against electricity.
Painting the new technology as dangerous,
even deadly, he warns of mass electrocutions
and out-of-control fires.
Rockefeller knows if he can frighten the public,
kerosene will continue to be the dominant light source.
- JERRY WEINTRAUB: I am not a good enemy.
I'm a terrible enemy.
So, if you screw around with me, or you hurt me,
I'm gonna hurt you back.
Now that doesn't mean physically, but I will,
in the end, win.
Because I'm a winner, and I don't lose.
- NARRATOR: But John D. Rockefeller
is about to become the least of Morgan's problems.
A new competitor emerges.
- ANNOUNCER: Ladies and gentleman, Nikola Tesla!
- (applause)
- NARRATOR: A war over the future of electricity is coming,
and J.P. Morgan could be the first casualty.
America's explosive change transforms
the world's view of the country.
Where many once saw failure,
innovation is now leading the nation into a new age.
Railroads, oil, and steel have rebuilt the country,
and electricity is creating unimagined advances.
J.P. Morgan's attempt to unseat John D. Rockefeller
as the man lighting America has led him
to partner with Thomas Edison to form
one of the first electric companies, and together,
they're electrifying homes throughout New York.
- The inventions, the things that literally
almost come out of nowhere,
require incredible vision and support
from leadership, because those are big leaps.
If a leader doesn't take that invention
and really embrace it and own it, it won't happen.
- NARRATOR: Morgan has gone against his father's
advice by backing Edison, but he's maintained
one of the rules he's learned.
- How much competition do you have, Edison?
- Nothing worthy of note.
- NARRATOR: Edison is ignoring what's
potentially the biggest challenge to his design
for electricity, and it comes from inside his own lab.
His apprentice, Nikola Tesla.
- JILL JONNES: Nikola Tesla,
from a very young age, was obsessed with electricity.
And when he first meets Thomas Edison,
initially he worships him...
- Mr. Edison, sir.
- What is it?
- I was wondering if you had chance to look
at my AC motor design.
- Nobody's interested in your design, Tesla.
Alternating current is not safe,
which is why we use direct current.
- NARRATOR: Tesla has developed a new form
of electricity known as "alternating current", or "AC".
But Edison believes that higher voltage AC
is more dangerous than the direct current electric standard
he's pioneered.
- JILL JONNES: I think Edison probably saw Tesla
as a junior employee.
I mean, remember.
Edison is world-famous, and Tesla's just one
of many very bright young men who work for him,
and the fact that he's pushing AC is no big deal
to Edison, because Edison sees himself as the person
who's really solved this problem and made it commercial.
- What's this?
- My resignation.
- You won't find anybody else to employ you.
- I'll set up my own company.
- Good luck finding an investor.
- NARRATOR: Now free to pursue his own ideas,
Tesla begins looking for an investor
to back his AC technology.
He finds one in inventor-turned-businessman
George Westinghouse.
- TESLA: The magnetic field, when it moves,
it carries the motor around.
Motor powers itself.
- How far do you think you can take AC?
I mean, what is its potential?
- TESLA: Build one power plant,
can supply enough electricity to eastern
part of United States.
- That's amazing.
- NARRATOR: Morgan and Edison may have lit up New York,
but Westinghouse and Tesla believe alternating
current's greater power is more effective...
- Thank you.
- NARRATOR: ...and they set out to prove it.
- Good luck, Nikola.
- Thank you, Mr. Westinghouse.
- ANNOUNCER: Ladies and gentlemen,
please welcome the new wizard of electricity,
Nikola Tesla!
- (applause)
- My first demonstration is for those amongst you
who fear that AC and high voltage will make
the world unsafe.
- (electricity humming)
- (applause)
- NARRATOR: Tesla travels the country,
showing AC pulsing through him.
The successful demonstrations have orders
for Westinghouse power stations pouring in.
- People who understood the science of electricity
realized that Tesla was a new giant,
and a significant rival.
- (applause)
- NARRATOR: J.P. Morgan
suddenly finds himself in an unfamiliar position.
- I thought you didn't have any competition.
- None that are worthy of note.
- I have just seen the drawings and descriptions
of an electrical machine lately patented by
Mr. Tesla, which will revolutionize the world's
electrical business.
- AC has a very high voltage, and is lethal.
A young boy touched a straggling wire
and was killed instantly.
You, sir. You have DC running through your home.
None of your family are at risk.
- J.P. MORGAN: Edison, I see that the electrical industry
has two competing systems right now: AC and DC.
This world has room for only one of 'em.
- NARRATOR: J.P. Morgan
is staking everything on Thomas Edison.
But as the battle to electrify the nation heats up,
the pressure Morgan puts on Edison sends him
down a dark path.
America's advancement in the last three decades
is staggering.
Railroads have replaced wagon trails to unite the nation,
and the country's cities stand tall on steel.
First kerosene transformed the night,
and now,
electricity is about to light homes from coast to coast.
Only John D. Rockefeller isn't about to let
J.P.Morgan and Thomas Edison put him out of business.
He's determined to keep kerosene the leader
in the light game.
He begins a campaign to stop electricity before
it gains traction, though he may underestimate the draw
of this magical new power.
- (applause)
- J.P. Morgan
has more to worry about than Rockefeller.
Morgan's father always told him to avoid
competition at all costs.
And now he and Thomas Edison are locked in
a heated battle over what will become the dominant
form of electricity.
Nikola Tesla has developed a whole new way
to transmit electricity, and his technology threatens
to destroy everything Morgan and Edison have built.
- J.P. MORGAN: The electrical industry
has two competing systems right now: AC and DC.
This world has room for only one of 'em.
- NARRATOR: If Morgan loses,
he risks ruining his reputation, and his name.
Morgan ratchets up the pressure on Edison,
telling him to take out the competition in any way he can.
- ALAN GREENSPAN: J.P.Morgan was, really,
an extraordinary character.
He was steely-eyed, determined, very smart,
and somebody who had that characteristic
"I'll take charge".
And he did.
- NARRATOR: Feeling the pressure from Morgan,
Edison sets out on a mission to prove his
direct current is the safest form of electricity.
- The War of the Electric Currents is the dark side
of Thomas Edison.
The tactic that Edison took was to persuade
people that alternating current was the killer current.
It is a side of Edison we don't normally see.
- NARRATOR: He begins using Tesla's
alternating current in a series of demonstrations,
hoping to scare the public about AC's power.
- Edison used all sorts of dirty tricks
to try to discredit AC.
He killed animals before an audience.
- NARRATOR: But nothing seems to be slowing
the enthusiasm for Tesla's stronger current.
Growing ever more desperate to please Morgan,
Edison is relieved when a letter arrives
that could be his opportunity.
A New York state prison has been looking
to replace hanging as a means of execution.
Many have come to believe that the medieval method
is cruel and inhumane.
Electricity could provide a useful alternative.
The design Edison envisions is simple,
yet groundbreaking.
- NARRATOR: America's advancement
in the last three decades is staggering.
Railroads have replaced wagon trails to unite the nation.
And the country's cities stand tall on steel.
First Kerosene transformed the night.
And now electricity is about to light homes
from coast to coast.
Only John D. Rockefeller isn't about to let
J.P. Morgan and Thomas Edison put him out of business.
He's determined to keep kerosene
the leader in the light game.
He begins a campaign to stop electricity
before it gains traction...
...though he may underestimate the draw
of this magical new power.
J.P. Morgan has more to worry about than Rockefeller.
Morgan's father always told him to avoid
competition at all costs.
And now he and Thomas Edison are locked
in a heated battle over what will become
the dominant form of electricity.
- (Blues Saraceno playing "Save My Soul")
♪ When I got to Memphis ♪
♪ I put my old baby down ♪
♪ He said I can't take you to Heaven ♪
♪ I can't save your soul ♪
♪ I can't promise forever ♪
♪ Whoo ♪
♪ With my heart in your hands ♪
♪ I can't feel, fell my soul ♪
- JILL JONNES: Edison became very happy to help
develop an electric chair, as long as that electric
chair used Westinghouse alternating current generators.
- NARRATOR: Edison devotes his lab's attention to the
development of the world's first electric chair.
It's the perfect opportunity to prove
that Tesla's AC is dangerous...
...even deadly.
The prison invites the press to witness
the most sensational demonstration imaginable.
The world's first human execution...
...by electricity.
- Is it ready?
- Yes.
- Goodbye, William.
- He's dead.
- PRISON OFFICIAL: He's bleeding.
- He's breathing.
- I'm gonna be sick.
- JILL JONNES: They then essentially
roasted this man alive.
It was a botched execution.
- NARRATOR: The gruesome act backfires on Edison.
The public doesn't connect A.C. to Tesla.
All they remember is that electricity
was used to kill a man.
And that Edison was behind it.
The damage to his reputation is massive.
And J.P. Morgan endures an even worse fate.
- Now I have to read in the newspaper
my son is funding Edison.
A latter-day Frankenstein.
- He didn't pull the switch.
- Let me make a few points clear to you.
I do not want the House of Morgan
associated with electricity.
Or any of the devil's works.
I have spent my life making a name
and I am not about to let you destroy it.
- I have a chance to build here--
- Pierpont!
It's over.
I set sail for Monaco tomorrow.
While I'm away, see to it you sell
whatever stakes you have in these Edison companies.
- NARRATOR: Morgan set out to become
a legendary innovator in his own right.
But now his dream has come crashing down.
Edison has played directly into John Rockefeller's hands.
Demonstrating electricity to be dangerous and deadly.
Morgan knows that pulling his funds from Edison
would completely destroy the electric industry.
And leave Rockefeller at the top of the light game.
But despite his father's objections...
...Morgan is still convinced that electricity is the future.
And soon, news of a new project reignites his ambitions.
A project that will remove the stain of Edison's experiments...
...and restore the public's trust in the electric industry.
Electricity is about to go national.
A company at Niagara Falls has begun work
on one of the most ambitious construction projects
ever undertaken.
The world's largest power plant is being built.
And 1 ,300 men are digging a massive tunnel
2.5 miles into bedrock.
Once complete, the raw power of the falls
will generate a mind boggling 120,000 horse power.
More than all the electricity being produced
throughout the country...
...combined.
- MAURY KLEIN: Niagara is a watershed in the history
of the electric industry.
It shows that it is not only feasible
but practical to transmit electricity over distance.
- NARRATOR: The Niagara power station will be capable
of generating enough electricity to light
the entire Northeast.
- JILL JONNES: To take such a incredibly famous place
that's got this extraordinary water power
and harness it to electricity was going to make
the case to the world that this was something
you could do everywhere.
- NARRATOR: But the Niagara Power Company
hasn't yet decided who will power the generators...
...Morgan and Edison's D.C. Or Tesla's A.C.
The world's biggest power station would be
a huge game changer.
J.P. Morgan knows it's his opportunity
to create the empire he's always wanted.
But he also knows that getting the contract
to power Niagara would require a massive investment.
One his father would never allow.
Morgan agonizes over his next move...
...until tragedy strikes.
- Sir.
- NARRATOR: His father has been
in a horrible carriage crash.
Junius Morgan dies as a result of his injuries.
J.P. is now left in charge of the House of Morgan.
The empire includes a vast portfolio of businesses
invested in railroads, real estate, shipping,
manufacturing...
...and electricity.
With his father gone, nothing is holding Morgan back.
- JENNIFER TONKOVICH: When Junius died it
was truly a devastating moment for Morgan.
But also it ended up being a bit of a relief,
because after his father's death he really came into his own.
The freedom really helped him realize
the full potential in some ways.
- NARRATOR: Morgan's net worth more than quadruples.
And instantly he has hundreds of millions of dollars.
Money he plans on using
to win the Niagara contract.
- The best time to buy is when there's blood on the streets.
- I'm not sure I follow you.
- It's advice Lloyd Rothschild gave my father.
It's advice he never took.
I'm increasing my investment to $4 million.
I'll give you an extra million dollars in cash
to pursue other projects.
- That shouldn't be a problem.
- Good. The Niagara Falls Power Company is inviting bids
for the new Niagara Falls central power station.
They haven't yet decided if they want to go
with A.C or D.C.
I want you to prepare a bid, Edison.
This is now a race.
You better win.
- RICHARD PARSONS: Timing is everything in business.
Everybody wants to be the first mover.
Everybody wants to be on the bleeding edge,
or the cutting edge.
You have to be on the pulse of the moment.
Timing in business is just like timing in life.
It is perhaps as important as any other single factor.
- NARRATOR: Construction of the Niagara Power Station
is continuing at a blistering pace.
(explosions)
Workmen are almost finished
with a 2.5-mile-long tunnel.
And it won't be long until water shoots through it...
...powering turbines the size of houses.
Those turbines will generate enough
electricity to light up the entire northeast.
Morgan knows that to win the contract,
he'll need to eliminate the competition.
Tesla and Westinghouse are making headway
with alternating current.
But after their company's rapid expansion,
Westinghouse is drowning in debt.
And his business is struggling to stay afloat.
J.P. Morgan sees an opportunity to take advantage
of his vulnerability.
- (crowd yelling)
- JILL JONNES: J.P. Morgan
was a huge power on the stock market
when it was not at all regulated.
In the case of George Westinghouse,
his company on a number of occasions,
was assaulted on the stock market by Morgan entities.
- NARRATOR: Morgan capitalizes on a downturn
in the economy.
...launching a smear campaign designed
to trigger a sell-off of Westinghouse stock.
- JOURNALISTS: Mr. Morgan!
Mr. Morgan!
- What is to be done about the panic?
- There's no need to panic.
- Mr. Morgan, are we on the verge of a depression?
- Not if we act wisely.
- Now how many more companies will go bust, Mr. Morgan?
- The only companies at risk
are those fast expanding capital intensive,
debt-ridden ventures.
Thank you, gentlemen.
- Mr. Morgan! Mr. Morgan!
- NARRATOR: Morgan's remarks are subtle.
But his influence on Wall Street is so great,
their effect is devastating.
Over the next few weeks, investors sell off
Westinghouse's stock, sending the company
into a tailspin.
Within days, it's almost bankrupt.
- DONNY DEUTSCH: You get successful at something
and all of a sudden you make a lot of money
and the world says you're successful.
There's no margin for failure anymore.
There's only degrees of success.
NARRATOR: With Westinghouse driven into debt,
Morgan is convinced there's no longer
any competition to win the contract for Niagara.
Unable to raise additional funds,
Westinghouse is ready to admit defeat.
- Tesla, the reason I'm here is to tell you
my company is on the verge of bankruptcy.
- You have my A.C. motor designs,
- It's the opposite.
Nobody will lend me money
because of your royalty deal on your patents.
- The benefits that will come to civilization
from my polyphase system
will mean more to me than money involved.
Mr. Westinghouse, you will save your company
to develop my invention.
This is my contract, and I will tear it to pieces,
and you will no longer have any troubles
from my royalties.
- Thank you, Nikola.
NARRATOR: Tesla gives Westinghouse control of A.C.
and forgoes all claim to his patents.
Investments soon pour in.
And Westinghouse Electric is viable again.
Westinghouse knows that to beat Morgan,
he needs a bold move.
And soon, he has the perfect opportunity.
Chicago is about to host
one of the globe's landmark events--
the World's Fair.
Organizers want it to be the most stunning display
of technology ever seen.
They decide to light the entire event using electricity.
- JILL JONNES: The managers and the creators
of the Chicago World's Fair of 1893 want to have
an entirely electric city.
They want to be cutting edge.
They invite companies to bid
on this contract to electrify the fair.
- NARRATOR: Morgan assumes that he and Edison
are a lock to light the fair.
But Westinghouse has other plans.
He drastically underbids the project...
...claiming the can light the fair for less
than a quarter of what Morgan and Edison have bid.
The bold move secures the contract,
and Westinghouse and Tesla immediately get to work
wiring the fairgrounds.
And finally, on opening night,
with the eyes of the world on Chicago,
they flip the switch.
And instantly, over 200,000 light bulbs come to life.
- JILL JONNES: 27 million people came to this Fair
and saw an electrified world.
And that had a huge, huge impact
on spreading this technology.
People realized there was a whole electrical future coming.
- NARRATOR: It's a display
unlike any the world has ever seen.
And it's all powered using George Westinghouse
and Nikola Tesla's alternating current electricity.
The fair forever demonstrates the safety
and viability of A.C.
Westinghouse and Tesla's incredible display
has another consequence.
A decision is made on who will power
the Niagara Falls station.
Two letters go out...
...but only one man can win the contract.
America is now the most technologically advanced
nation on the planet.
Trains, oil, and steel have built the country,
and the newest sensation, is electric light.
Showcased at the Chicago World's Fair,
electricity is about to go national.
But a battle has broken out.
Pitting J.P. Morgan
and Thomas Edison against George Westinghouse
and Nikola Tesla.
In a fight for control of the world's largest power plant...
...at Niagara Falls.
- STEVE CASE: If you're really trying
to not just to create a company, but to create a new industry
and change the world in a fundamental way,
you really need to believe in the idea and stick
with it through thick and thin
because it's going to be a tough road.
- NARRATOR: J.P. Morgan has invested
millions into the electric industry...
...hoping to replace John D. Rockefeller
as the man lighting America...
...and the Niagara Power Plant could give him
control over the future of electricity.
- JILL JONNES: Whoever wins this contract
is going to be the preeminent electrical company--
not just in America, but the world.
- NARRATOR: The plant at Niagara Falls reaches a decision.
And two letters go out.
But there can only be one winner.
In a shocking twist...
...George Westinghouse wins the contract
for the power station.
- JACK WELCH: You always want to be
in the winning locker room.
You don't want to be in the loser's locker room,
with a towel around your head.
- NARRATOR: J.P. Morgan has been badly defeated.
His dream of building an industry
from the ground up is over.
His attempt to make his own name...
...ruined.
- JUNIUS: This is the stuff of carnivals and fairs.
And you've been played for a fool.
- NARRATOR: He realizes his father
may have been right all along.
But never willing to admit defeat...
...J.P. Morgan sees a way to turn failure into opportunity.
- DONALD TRUMP: J.P. Morgan
made a mistake backing Thomas Edison.
I mean, they all make mistakes.
And I always say that you have to guard
against the downside.
Because it can be the greatest deal you've ever seen,
and there is a chance that that deal won't work out.
Don't let a deal like that take you down
if it doesn't work.
- NARRATOR: Morgan is determined to gain control
of the electric industry.
And he's going to do it the Morgan way.
- JILL JONNES: If you were on his bad side,
or he coveted your company,
or the technology that your company had,
you did not want to be in that position.
- NARRATOR: Morgan returns to the lessons of his father.
He's going to intimidate the competition into submission.
He starts his attack by going after Westinghouse,
and everything he owns...
...including Tesla's A.C. electricity patents.
- MORGAN: Congratulations, Westinghouse.
I hear you won the Niagara Falls contract.
I'll be taking you to court for patent
infringement over A.C. designs.
- Why would you start a legal case
that will cost millions-- a case that you will lose?
- Because you don't have the resources
to fight such a case-- and you'll go under.
- What is it you want?
- You know the answer to that.
- (applause)
- My first demonstration
is for those amongst you who fear...
- NARRATOR: Westinghouse has no choice but to give in
to Morgan's demands.
Knowing that the cost of a lawsuit will put him
out of business, he's forced to sign over the patents
for Tesla's A.C. electricity.
But Morgan doesn't stop with Westinghouse.
With the loss of the Niagara contract,
the company Morgan started with Thomas Edison is broken.
And Edison's D.C. electricity looks like a failure.
- MAURY KLEIN: Thomas Edison is probably
the most brilliant inventor America every had.
And like many brilliant men he was capable
of spectacularly wrong choices.
- NARRATOR: As far as Morgan's concerned,
there's only one way to fix Edison Electric.
He's going to streamline the company.
And his first step is to eliminate Thomas Edison.
Morgan buys up additional shares of Edison Electric stock...
...until he has complete control of the company.
- It's a device that shows moving pictures.
We'll put the Niagara business behind us,
and Edison General Electric will move forward
to greater things.
- The name of the company has been changed--
to General Electric.
- But it's my company.
Surely I have a say.
- Not anymore--you no longer have a majority stake.
NARRATOR: Morgan's new electric company--
general electric--is instantly one of the most powerful
corporations on earth...
...valued at $50 million, or the modern equivalent
of over one billion.
With Edison out of the way,
Morgan converts the company to A.C. electricity.
The standard that's still used today.
- STEVE CASE: With General Electric,
you could tell they were building a big company
and something that was really going to change the world.
They were really trying to position
it in the marketplace as a significant,
lasting company.
NARRATOR: General Electric will go on to become
one of America's biggest corporations.
- DONNY DEUTSCH: The players change, the stakes change,
but the essence of the game stays the same.
Whether it's understanding who it is that you have
to kind of massage, who it is you gotta knock on the head,
who it is you have to buy off to do this.
That's the game.
- NARRATOR: With the creation of G.E.
J.P. Morgan has consolidated the electric industry.
Just like he did with the railroads.
And Wall Street.
It's a move he learned from his father.
A move J.P. Morgan has now made his own.
- STEVE WYNN: There's always a reason
why you can't do something, but if deep inside you
it's what you want very badly, you take chances,
you measure opportunity and get where you want to go.
- NARRATOR: J.P. Morgan joins Rockefeller and Carnegie
as one of the most powerful men in the country.
But Morgan's rapid rise to the top
makes him hungrier than ever.
And as his power grows...
...his rivals are forced to adjust.
America is the fastest growing country on the planet.
Linked by railroads, fueled by oil,
and built on steel.
The nation has become a battleground
for magical new innovation.
Electricity is transforming the world.
And with General Electric,
J.P. Morgan is the uncontested leader in the industry...
...using his millions to build power stations
from coast to coast.
Bringing electricity to the masses for the first time.
- STEVE CASE: Entrepreneurs want to
change the world, want to have a significant impact,
don't want to just build a company.
They want to build an industry.
They don't want to just create another product or service,
they really want to fundamentally improve
aspects of people's lives.
- NARRATOR: But J.P. Morgan
doesn't want to be confined to just one industry.
He wants to own them all.
As the head of the biggest investment bank in the world,
Morgan has unrivaled power and influence,
and he's returned to his old ways.
Only now he's taken the House of Morgan to another level.
- MAURY KLEIN: Morgan's reach was very broad
in American industry.
He becomes the most respected,
reliable and trusted figure,
not only because of the power and wealth that he wields,
but just because of his character.
- NARRATOR: After a two year depression,
the U.S. Treasury has become perilously close to bankruptcy.
And there is only one man the government can turn to.
J.P. Morgan is called to Washington to help.
- JIM CRAMER: We think of bankers now
as just greedy bankster-gangsters.
Morgan was maybe one of the greediest of all,
but he also really had this side of him
which just said I have faith in men,
I have faith in the country, and I am going to lend it.
- NARRATOR: Morgan puts together a loan
worth over $100 million, almost $3 billion today,
and bails out the federal government.
Saving the American economy from complete collapse.
- DONALD TRUMP: J.P. Morgan
was really the country's banker.
Today when you think of that, it's inconceivable.
But he would loan the country money,
when the country was in trouble.
- ALAN GREENSPAN: Morgan obviously was looking
at the national interest in the context of his own,
that is, saving the U.S. Treasury
was an act of basic self interest,
but it was an act of nationalism.
- NARRATOR: Morgan's newfound power is a huge
wakeup call to his rivals.
They see Morgan as a threat they need to deal with.
Before he deals with them.
John Rockefeller feels the pressure
to keep his empire intact like never before.
Despite his best efforts to stop it in its tracks...
...electricity has gone mainstream.
- STEVE WOZNIAK: The people started these great companies,
they just think out solutions on their own to problems.
You don't do it the way it's been done before--
that's in a book.
You go out and you try something new cause you think
it'll, that you'll be able to make it work...
- NARRATOR: To keep Standard Oil profitable,
Rockefeller needs to find a product to replace kerosene.
And the answer may have been
in front of him the entire time.
- Just over 100 degrees you get a mixture of alkanes.
Sadly it can't be used for anything.
- ROCKEFELLER: Why not?
- ANDREWS: Too volatile.
- NARRATOR: Rockefeller targets a byproduct of refining oil
that for years has been thrown away.
The highly flammable runoff is soaking fields
and polluting rivers.
The toxic substance is called gasoline...
...and so far, no one has figured out a use for it.
- DONALD TRUMP: Oftentimes I'm asked
do you have to be ruthless to be very successful?
And I say, you do not have to be ruthless,
you have to be smart.
Smart is the key word.
You have to be smart.
- NARRATOR: Rockefeller hires a team of scientists
to try to find a use for the toxic substance.
First they create small products...
...like synthetic beeswax and petroleum jelly.
But Rockefeller becomes convinced gasoline
has a bigger potential.
The quest to create a more powerful motor
leads to the development of the internal combustion engine.
The exact properties that make gasoline so dangerous,
also make it the perfect fuel to power this engine.
- JACK WELCH: You're always looking
for the next innovation.
The next niche.
The next product improvement.
The next service improvement.
You're always trying to get better.
- NARRATOR: The timing is perfect for Rockefeller.
Already in possession of the world's largest supply
of gasoline, he starts using gasoline powered
engines to run machines in his refineries.
The efficiency and power of the engine quickly make
it the standard in factories across the country.
But when the engine is put on wheels...
...creating what's being called "the horseless carriage"...
..Rockefeller realizes that gasoline could be
even bigger than kerosene.
But right when Rockefeller sees
the future of the oil industry...
- WILLIAM JENNINGS BRYAN: No man could earn a
million dollars honestly.
- NARRATOR: An outside threat emerges.
- WILLIAM JENNINGS BRYAN: I will tear down these trusts!
- NARRATOR: ...who could destroy everything he--
and his rivals--have built.
- WILLIAM JENNINGS BRYAN: Do you hear me Carnegie?
Do you hear me Rockefeller?
- NARRATOR: As the 20th century approaches.
J.P. Morgan and John Rockefeller have been locked
in a battle pitting electricity against kerosene.
Their rival, Andrew Carnegie,
has stayed out of the fray.
He's been quietly building his steel empire bigger than ever.
Including landing lucrative contracts
with the U.S. Navy to provide steel for warships.
Making him one of the country's first defense contractors.
- DONNY DEUTSCH: The great business icons--it's not
that they were worth hundreds of millions,
or billions, or trillions of dollars,
it's that they moved society forward.
Whatever their motivations,
whatever it was, they--being here
and their lust for success, for power, for money,
for fame--moved us forward.
- NARRATOR: But now, J.P. Morgan
is about to take business to a whole new level.
He begins looking for other ways to make money.
Building on his father's business model.
He creates a tactic that's so innovative,
it becomes known as "Morganization."
- "Morganization," in effect,
means taking companies that were fighting each other,
bringing them together,
and managing the company in such a way that
competition is reduced, profits are increased.
In other words, trying to impose order on these
fiercely competitive industries.
- NARRATOR: Morgan starts restructuring companies
in industries across the country.
Firing workers and eliminating inefficiencies.
While prioritizing profits over everything else.
And soon, Morgan's rivals adopt the same approach.
- STEVE WYNN: The private sector--greed, ambition,
dreamers, the stuff of entrepreneurs;
look at it too closely, you may not admire it
as much as you do after the fact.
- NARRATOR: Carnegie and Rockefeller
begin Morganizing their own companies.
Maximizing profits by slashing their workforce.
Those who still have a job...
...are forced to work longer hours.
For even less pay.
- JIM CRAMER: What we saw during this golden age
of capitalism was the unregulated side
of capitalism that make us feel, these days,
glad for federal government,
because no one else was keeping an eye on things.
- NARRATOR: Conditions for workers across the country
become almost unbearable...
...as going to work for many Americans,
becomes a dangerous proposition.
- STEVEN WATTS: You had a working class
or even the unemployed who had a very hard time of it.
They had low paying jobs, if any at all in this
period, a little bit above starvation wages,
many of them.
So, there's a growing disparity of wealth
in this period that was very striking.
- DONNY DEUTSCH: What people defined
as haves and have-nots, super rich, hedge fund guys,
and people just trying to pay their mortgage.
It's still nowhere near what was going on
in the old days as far as, you know,
truly abusive conditions for workers.
- NARRATOR: The gap between the rich and the
poor continues to grow...
...at a staggering rate.
While the working class struggles...
...profits for Carnegie, Morgan,
and Rockefeller are better than ever.
To millions of workers around the country,
the titans of industry are a symbol of everything
wrong with America.
A seething undercurrent of anger takes hold.
One that quickly bubbles to the surface.
With an election year on the horizon,
a politician from Nebraska is channeling
the public's frustrations.
WILLIAM JENNINGS BRYAN: I will tear down those trusts.
- NARRATOR: And directing them right
at America's richest men.
- WILLIAM JENNINGS BRYAN: Do you hear me Carnegie?
Do you hear me Rockefeller?
- NARRATOR: William Jennings Bryan is an up
and coming political force who's drawing huge crowds...
...vowing to put an end to the country's monopolies.
But Bryan's promise of change is bad news
for the leaders of American business.
- H.W. BRANDS: To many people it seemed as though big money,
big corporations, the biggest of all
Standard Oil, were taking over the country.
From this emerged the progressive movement.
And a major part of its platform was antitrust legislation.
Not just legislation, but antitrust prosecution.
- NARRATOR: Rockefeller, Carnegie,
and Morgan have built entire industries from the ground up.
They're not about to let a charismatic politician
destroy their empires.
But public opinion is solidifying against them.
And as Bryan begins a campaign for the White House...
...the Titans know that stopping him won't be easy.
They devise a plan so bold,
no one has ever attempted it before.
There's only one problem...
...to be successful, they can't work alone.
For the first time, America's most powerful
men will have to put their rivalries aside...
...and start working together.
- CARNEGIE: What do you think?
- We need to buy the President.