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Westinghouse Electric Corporation, one of the most influential companies in
the development of American industry, innovation, and technology, was founded in
1886 by George Westinghouse (1846-1914). Westinghouse was an inventor and industrialist who
held over 300 patents and had already revolutionized the railway industry with
his invention of the air brake system. He sought to apply his inventive genius
and business acumen to the burgeoning electrical industry, and his new company
would soon become a powerhouse in electrical engineering, energy production, and
consumer electronics.
George Westinghouse was a visionary who saw electricity as the future of
industry and daily life. He was particularly drawn to the work of
Nikola
Tesla,
the Serbian-American inventor who had developed the alternating current (AC)
system of electricity distribution. At the time, Thomas Edison's direct current
(DC) system was the dominant form of electrical transmission, but it had
significant limitations, particularly over long distances. Westinghouse
recognized the potential of Tesla's AC system to solve these problems and bought
Tesla's patents for AC in the late 1880s, forming the basis of a long-standing
rivalry between Westinghouse and Edison, known as the "War of Currents."
Westinghouse's early work on AC transmission was groundbreaking. The company
developed a system for long-distance transmission that allowed electricity to be
delivered efficiently over vast distances, which would be crucial for powering
cities and industries. One of Westinghouse's most significant early successes
came at the 1893 World's Columbian Exposition in Chicago, where the company won
the contract to light the fairgrounds using its AC system. The success of this
project was a major public relations victory, demonstrating the superiority of
alternating current and leading to widespread adoption of AC power. Following
this, Westinghouse won another major victory by securing the contract to build
the first major hydroelectric power plant at Niagara Falls, which began
operating in 1895 and supplied electricity to Buffalo, New York.
As Westinghouse Electric Corporation grew, it became involved in many areas
of electrical engineering and manufacturing, including power generation,
electrical appliances, and industrial systems. Westinghouse was not just a
businessman but also an innovator who valued scientific research. The company
established some of the first industrial research laboratories, which became
centers of innovation. Notably, William Stanley, a Westinghouse engineer,
developed the first commercially viable transformer, a critical component in the
success of AC power distribution.
In addition to Tesla, another significant figure in Westinghouse's history
was Oliver Shallenberger, who invented the alternating current watt-hour meter,
which became the standard for measuring electricity consumption. The meter
allowed electric companies to charge customers based on usage, an essential
development for the commercialization of electricity. This invention, along with
many other patents held by Westinghouse and his engineers, helped establish the
company as a leader in the electrical industry.
The early success of Westinghouse Electric was paralleled by aggressive
financial maneuvers. To compete with Edison's General Electric, Westinghouse had
to raise significant capital, often through stock issuances and debt. At times,
this placed great financial strain on the company, particularly during the Panic
of 1893 when the U.S. economy fell into a deep depression. Westinghouse faced
severe financial difficulties during this period, and in 1907, amid another
financial crisis, George Westinghouse lost control of the company to financiers
who forced him out. Despite this personal setback, the company continued to
thrive and expand under new leadership.
Westinghouse Corporation rapidly diversified into various sectors, becoming a
major player in electrical appliances, radio, and broadcasting. In the early
20th century, Westinghouse moved into radio broadcasting, a new technology at
the time. In 1920, Westinghouse's KDKA in Pittsburgh became the first commercial
radio station in the United States, broadcasting the results of the presidential
election between Warren G. Harding and James Cox. The success of KDKA helped
launch the radio industry, and Westinghouse quickly became a leading
manufacturer of radio equipment, creating both the technology for broadcasting
and the receivers that brought radio into American homes.
The company's innovation continued into the realm of nuclear power. In the
1950s, under the leadership of H. C. Smith and physicist Alvin Weinberg,
Westinghouse became a pioneer in the development of commercial nuclear energy.
The company was awarded the contract to build the first full-scale nuclear power
plant, the Shippingport Atomic Power Station in Pennsylvania, which began
operating in 1957. Westinghouse's work in nuclear energy was transformative,
providing the foundation for the global nuclear power industry. The company
developed key technologies, including nuclear reactors and fuel systems, and
became a leader in the design and construction of nuclear power plants around
the world.
Throughout its history, Westinghouse was home to many of the era's great
scientists and engineers. Beyond Tesla and Stanley, some notable figures
included Joseph Desch, who led efforts to design early computing systems during
World War II, and Vladimir Zworykin, who made pioneering contributions to
television technology. Zworykin is credited with inventing the iconoscope, the
first practical television camera, and the kinescope, an early cathode ray tube
that would become the basis for television screens.
Westinghouse's research and engineering achievements were complemented by its
manufacturing might. The company established a large number of factories and
research facilities across the United States, with major operations in
Pittsburgh, East Pittsburgh, and Trafford, Pennsylvania, as well as in
Cleveland, Ohio, and Buffalo, New York. These facilities produced a wide range
of products, from light bulbs and electrical generators to household appliances
and industrial equipment. The company's factories were key employers in these
regions, contributing significantly to the economic development of the
industrial Northeast.
Financially, Westinghouse was listed on the New York Stock Exchange and
became a significant player in the stock market, known for being one of the
largest and most profitable industrial companies in the world. The company's
financial health, however, was sometimes volatile due to its constant push into
new technologies, markets, and industries. In the 1980s, Westinghouse faced
increased competition and financial pressures as it attempted to diversify
beyond its traditional core businesses. Under the leadership of CEO Robert
Kirby, the company made a series of acquisitions in broadcasting and financial
services, but many of these moves proved to be problematic, leading to financial
strain.
By the 1990s, Westinghouse began shedding its industrial and manufacturing
businesses, selling off divisions such as its appliance and defense businesses,
which had once been central to the company's identity. In 1995, the company
renamed itself CBS Corporation after acquiring the television network CBS. This
shift marked the end of Westinghouse as an industrial giant and its
transformation into a media company.
Westinghouse's legacy, however, continues. The company name lives on in
Westinghouse Electric Company, which was spun off in 1999 and continues to
operate in the nuclear energy industry, designing nuclear reactors and providing
services to nuclear power plants worldwide. The Westinghouse brand also remains
iconic in consumer electronics and appliances, though it has changed ownership
several times.
In terms of patents and inventions, Westinghouse's contributions were vast.
The company held thousands of patents, covering everything from AC power
transmission systems to household appliances, nuclear reactors, and radio
technology. These innovations helped shape modern life and made Westinghouse one
of the most innovative and influential companies of the 19th and 20th centuries.
Westinghouse Electric Corporation's history is a story of visionary
leadership, scientific and engineering brilliance, financial highs and lows, and
transformative technologies. George Westinghouse's belief in the power of
electricity to change the world set the company on a path of innovation that
influenced countless industries. From AC power distribution to nuclear energy
and from radio to consumer electronics, Westinghouse's impact on technology,
industry, and everyday life is profound and enduring.
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