Power Failure: The Rise and Fall of an American Icon

Let’s begin our journey with a spark—a literal one. In the late 19th century, the world was dark after sunset, lit only by candles, oil, and the dreams of inventors. Into this age stepped Thomas Edison, whose incandescent bulb offered not just light, but hope. Yet, as you’ll soon see, it wasn’t invention alone that built an empire—it was the marriage of vision and business daring.

While Edison’s genius brought forth the lightbulb, dynamo, and phonograph, the real magic happened when Charles Coffin, a shrewd, ambitious businessman from Maine, entered the story. Coffin saw what Edison and other inventors often missed: the need for capital, scale, and relentless organization. He orchestrated the merger of Edison’s company with Thomson-Houston, another electrical pioneer, forming the General Electric Company in 1892. In this union, GE inherited the restless energy of inventors and the iron discipline of financiers.

Imagine the skepticism of those early days. Many townsfolk believed electricity would explode or set their homes ablaze. Salesmen traveled from town to town, demonstrating the wonders of electric light, often installing the first bulbs themselves. They had to be part engineer, part evangelist. GE’s first triumph was not just in creating technology, but in convincing the world to believe in it.

Coffin’s genius was in creative financing. He accepted stocks and bonds from cash-poor local utilities as payment for GE equipment, essentially betting on their future success. This vendor financing allowed GE to expand rapidly, outpacing rivals and weaving itself into the fabric of modern America. By 1893, even as the country plunged into a devastating financial panic, Coffin’s bold moves kept GE afloat, setting a template for resilience that would echo through the ages.

Yet, this was just the beginning. The merger of invention and ambition, the spark of light in the darkness, set the stage for a century of transformation. As we move forward, remember: every great enterprise is born not just of ideas, but of the courage to make them real. Next, we’ll explore how this spirit of innovation and drive for growth shaped GE’s unique culture and leadership style, a crucible for some of the most famous—and controversial—executives in business history.