From the dawn of the age of electricity, both GE and Westinghouse manufactured the expensive generating equipment that enabled local utility companies to produce power. GE was often paid in stock by these utility companies, and so ended up owning strategic stakes in most of them. Eventually GE created a holding company, the Electric Bond and Share Company, that would control the generating companies. By June 1929, the utility companies were the hottest category of stocks, i.e., among
the most overpriced.
After the First World War, GE’s position as the industry’s leader was unassailable, and throughout the 1920s, the company had a new strategic objective: “The creation and fostering throughout America of a positive electrical consciousness.” In that single decade, GE, working with and through a trade association called the National Electric Light Association (NELA, the forerunner of the Edison Electric Institute), transformed America. The headquarters of GE Lighting is still at Nela Park, East Cleveland, Ohio.
The annual meeting of NELA in 1923 was the venue for the launch of the proposed national grid. “One vast power system for whole country projected,” declared the New York Times on July 17, 1923, in a breathless preamble to a front-page report from the conference by none other than the chairman of Westinghouse, Brigadier General Guy Tripp. There were two competing schemes at the time—the utilities favored one called Super Power; their opponents, largely municipalities, were pushing Giant Power, which would limit the influence of the utilities.
Both factions agreed, however, that a national grid was needed. “The only reason for the existence of such a system,” wrote Tripp, “is that it will increase the welfare of the people served by it.” Really?
In retrospect it would have been right to be cynical about this claim. Although the decision to create a pro-electric culture in America was a very conscious one, nobody realized quite how conscious until the late 1920s, when a Federal Trade Commission inquiry into NELA revealed the exact level of manipulation and the large propaganda budget devoted to persuading households to go on the grid.
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3 Responses
“Howes stressed the importance of the local community and the employment of domestic staff.”
Perhaps electrical power was seen as a savior by those householder who couldn’t afford domestic staff? The electrical appliances, and the power to operate had a cost, but one less than hired help. Point being that electrical power, and the appliances that consumed the power most likely weren’t a hard sell to those who could afford them. We today probably can’t appreciate the change electrical power repented in the daily live of many.
I see again a comment associating terrorist attack & decentralization. Large population centers will be the target of choice for terrorists When/if their localized power generation is destroyed. Power from the grid will be that return there lives back to normal. That should be the case if the conversation doesn’t turn from lambasting the grid to improving it. The citizens of japan have learned how important electrical power is to modern life. They experienced a situation where those off-grid, or on localized generation wouldn’t have fared any better than those on the grid
It makes no more sense to push electricity hundreds of miles using dangerously high voltages that is does to send water through hundreds of miles of pipeline. This is lunacy, sheer utter lunacy when solar and wind power can easily provide our electric power.
What about more efficient electric motors that can run our electric gadgets on 12 or 24 volt power? What about developing more efficient light sources (LED is still expensive, but it needn’t remain so)
What about all the overunity devices which are mysteriously pulled from YouTube for “Terms of Use Violations”?
The best defense against terrorist attacks on our electric power distribution is DECENTRALIZATION.
If the power I pay for is so good, why do my electronic sewing and knitting machines, my computer, and my TV all require not just surge suppressors, but power cleaning surge suppressors to smooth out the spikes and optimize their functioning?
There is a hidden agenda which we are being told doesn’t exist. Our public fool systems are teaching our children to not ask questions. Wake up!
Wow! Men, that was some short article of just 9 pages :) . Is appreciated. Great Info. Thank you