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. I am convinced that
steel is the future. NARRATOR: And thanks to Andrew
Carnegie 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,
causing them to fight back-- All those in favor of
striking, raise your hands. [cheering] NARRATOR: --barricading
Carnegie Steel's flagship plant, and when Frick decides to
take it back by force-- Fire! [music playing] NARRATOR: --an attempt
is made on his life. Mr. Frick. NARRATOR: Andrew Carnegie is
forced to rethink everything. [MUSIC - BLUE SARACENO, "SAVE MY
SOUL"] (SINGING) When I got to Memphis
to put my ol' baby down, he said, I can't
take you to heaven. I can't take your soul. I can't promise forever. Got my heart in your
hands, I can't feel-- feel my soul. [music playing] 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 cut short his trip abroad
and returns to Pittsburgh. [music playing] Henry Frick survives
the attempt on his life. Only three days after
being shot and stabbed, he's back in his office
at Carnegie Steel. [grunting] 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. 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 12-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 been around,
it would have 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. [music playing] A new threat is emerging. JP 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 JP
Morgan, the way he controlled the banking system. 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. [interposing voices] 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. It'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 was 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. [music playing] Andrew? Henry. How are you? Fine. Good. The board of managers
met yesterday. I was unaware. 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! Carnegie! [knocking] [toilet flushing] NARRATOR: As Carnegie struggles
to repair his broken empire, JP 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. HW BRANDS: JP 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, JP is taught that there's
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
balanced by then. JENNIFER TONKOVICH:
Morgan's father had a controlling presence. Junius really
didn't 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 $1 million. Now-- learn to earn it yourself. NARRATOR: JP Morgan's strained
relationship with his father continues. And by age 40, he's looking to
create an identity of his own. Is all this furniture
really necessary? That painting's 400 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 the next bond issue. So I'm assuming you'll
accompany 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. HW BRANDS: JP 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 JP Morgan is tired of
doing things his father's way. [music playing] 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 19. 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 1,000 patents. But now at 31, 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. [music playing] So this is where
genius resides. Genius is the
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. [music playing] NARRATOR: Electric light
will revolutionize the world. Like fire or the wheel, it
will transform human existence. JP 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
20th-century approaches, America is the most rapidly
growing country on Earth. Rail, oil, and steal 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 JP 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 it or to build it. NARRATOR: For years, JP 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. If you aren't willing
to use your own product, then how is anybody else
going to trust it and have confidence. 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 4,000
feet of wiring through the walls and
ceilings of the house and installs nearly 400 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. [music playing] [gasping] [laughs] [applause] Marvelous! 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: JP 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 fares. 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
is next on my list. NARRATOR: Electricity
becomes a must-have for the country's elite-- with one notable exception. John D. Rockefeller. [music playing] 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 JP 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
round to soundproof it. [music playing] JUNIUS MORGAN: You
disappoint me, Pierpont. I thought you knew better. JP MORGAN (VOICEOVER):
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 would 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. What would the cost be? I'll have to go
through my figures. Bring them to
me Monday morning. Is that model train set
powered by electricity? Yes. I want one for my
daughter's birthday next week. [music playing] 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 JP Morgan is determined
to bring it today the world. [laughs] NARRATOR: Electricity
has captured the public's imagination. But the technology is still
unproven and virtually unused. But partnered with
Thomas Edison, JP 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 $83 million 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,
JP 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 is far
broader than anybody 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
labored day and night, digging a network of
ditches over 15 miles long. They lay over 100,000
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 street
lights 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: JP 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
want to get rich, and wanted to build
something that lasted. Rockefeller wanted Standard Oil
to be the greatest oil company in the world. NARRATOR: Rockefeller launches
a targeted PR 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 going to 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. Ladies and gentlemen. Nikola Tesla. NARRATOR: A war over the future
of electricity is coming. And JP 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. JP 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 a
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 is just one of many
very bright young men who worked 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. [music playing] 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. 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? Build one power plant can
supply enough electricity to eastern part of
the United States. That's amazing. NARRATOR: Morgan and Edison
may have lit up in 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! My first demonstration
is for those amongst you who fear
that AC and high voltage will make the world unsafe. [buzzing] 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. NARRATOR: JP 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 struggling
wire and was killed instantly. You, sir, you have DC
running through your home. None of your family are at risk. Edison, I see that
the electrical industry has two competing systems
right now AC and DC. This world has room
for only one of them. [music playing] NARRATOR: JP 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. [music playing] 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 JP 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] JP 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. The electrical industry has
two competing systems right now AC and DC. This world has room
for only one of them. 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: JP
Morgan was really an extraordinary character. He was steely-eyed,
determined, very smart, and somebody who had
that characteristic I will take charge. And he did. [music playing] 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. [music playing] 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. [chains rattling] Is it ready? Yes. Goodbye, William. He's dead. He's bleeding. He's breathing. I'm going to 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 AC 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 JP 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've spent my entire
life making a name. And I'm not about to
let you destroy it. I have a chance to build! Pierpont! It's over. I set sail for Monaco tomorrow. While I'm away, see to it that
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. [music playing] 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 and 1/2 miles into bedrock. Once complete, the raw power
of the falls will generate a mind-boggling
120,000 horsepower-- 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. JERRY WEINTRAUB: 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
DC or Tesla's AC. The world's biggest
power station would be a huge game-changer. JP 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. What's that? NARRATOR: His father has been
in a horrible carriage crash. Junius Morgan dies as a
result of his injuries. JP is now left in charge
of the House of Morgan. [music playing] 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 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 his 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. [music playing] The best time to buy is when
there's blood on the streets. I'm not sure I follow you. It's advice Lord
Rothschild gave my father. It's advice he never took. I'm increasing my
investment to $4 million. I'll give you an
extra $1 million cash to pursue other projects. That shouldn't be a problem. Good. 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 AC or DC. I want you to
prepare a bit Edison. This is now a race. You better win. [music playing] NARRATOR: 30 years of
unparalleled growth have made America one of
the world's most powerful countries. Coast-to-coast travel,
artificial light, and skyscrapers now
dot the landscape. Men like Vanderbilt,
Carnegie, and Rockefeller have made fortunes
building modern America. And now JP Morgan is
hoping to join them by bringing a revolutionary
new technology to the masses. But Morgan's attempt
to build the world's leading electric company
is being challenged. While he's backing Thomas
Edison's direct current, George Westinghouse
and Nikola Tesla are developing a different
standard-- alternating current. As the competition heats
up, the opportunity to operate the Niagara
Falls Power Station reignites Morgan's ambitions. He knows that whoever controls
Niagara Falls will control the future of electricity. 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 just
like timing in life is perhaps as important as
any other single factor. [music playing] NARRATOR: Construction of
the Niagara power station is continuing at
a blistering pace. Workmen are almost finished with
a 2 and 1/2 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 the company's
rapid expansion, Westinghouse is drowning
in debt and his business is struggling to stay afloat. JP Morgan sees an
opportunity to take advantage of his vulnerability. [shouting] JP 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. 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. 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! 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
stock sending the company into a tailspin. Within days, it's
almost bankrupt. 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
of 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 that my company is on the verge of bankruptcy. You have my AC motor design. You can raise more money. It's the opposite. Nobody will lend me money
because of the royalty deal on your patent. 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. [music playing] Thank you, Nikola. NARRATOR: Tesla gives
Westinghouse control of AC and foregoes 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. The managers and creators
of the Chicago World's Fair of 1893 want to have an
entirely electric city. And 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 he 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. [music playing] JILL JONNES: 27 million
people came to this fair and saw an electrified world
and that had a huge, huge impact in spreading this technology. People realized that 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 AC. 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 JP 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 create a company, but
create a new industry and change the world
in a fundamental way, then 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: JP Morgan
has invested millions in 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. [music playing] 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: JP 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 MORGAN: 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, JP Morgan immediately
sees a way to turn failure into opportunity. DONALD TRUMP: JP 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 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 AC electricity patents. Congratulations, Westinghouse. I hear you won the
Niagara Falls contract. I'll be taking you to court
for patent infringement over AC 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. 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 AC 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 DC electricity
looks like a failure. MAURY KLEIN: Thomas Edison is
probably the most brilliant inventor America ever 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. [music playing] 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. [music playing] 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 $1 billion. With Edison out of the way,
Morgan converts the company to AC 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've got
to knock on the head, who it is you have to buy off to do this. That's the game. NARRATOR: With the
creation of GE, JP 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 JP 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. [music playing] NARRATOR: JP 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 a magical new innovation. Electricity is
transforming the world. And with General
Electric, JP 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 who
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. Don't want to just create
another product or service, they really want to
fundamentally improve aspects of people's lives. NARRATOR: But JP 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. [music playing] NARRATOR: After a
two-year depression, the US Treasury has come
perilously close to bankruptcy. And there's only one man
the government can turn to. JP 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 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 them. 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: JP 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
US 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 because you think 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. Why not? 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 keyword. 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. [music playing] 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. [music playing] 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 can earn a million dollars honestly! NARRATOR: --an outside
threat emerges. WILLIAM JENNINGS BRYAN: I
will tear down those trusts. NARRATOR: Who could destroy
everything he and his rivals have built. WILLIAM JENNINGS
BRYAN: (ANGRILY) Do you hear me, Carnegie? Do you hear me, Rockefeller? [music playing] NARRATOR: As the
20th-century approaches, JP 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 US 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 of
trillions of dollars. It's that they move
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 JP 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. [music playing] 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. 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. STEVE WYNN: 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
define is haves and have nots, super-rich hedge fund guys
and people just trying to pay their mortgage, is still
nowhere near what was going on in the old days as far as
your 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 have
become 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-- I will tear down those trusts. NARRATOR: --and directing them
right at America's richest men. 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. HW BRANDS: To many people, it
seemed as though big money, big corporations, and 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. [music playing] 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. What do you think? We need to buy the President. [music playing] NARRATOR: They've battled
each other for decades. But now the country's
biggest titans have no choice but to unite. In a pivotal election,
Rockefeller, Carnegie, and Morgan joined forces to
ensure the White House will bend to their will. I'll make sure he'll be
our man in the White House. And as they continue
to amass their fortunes-- Congratulations, Carnegie. You're now the richest
man in the world. NARRATOR: --a legendary
innovator from a new generation transforms the country. The Ford motor
car is the first car affordable for the common man. NARRATOR: Ushering
in a whole new era. [music playing] And due to an unlikely
turn of events-- He's got a gun! [gunshot] THEODORE ROOSEVELT: I, Theodore
Roosevelt, do solemnly swear-- NARRATOR: --the titans face
their toughest challenge yet. The United States versus
Standard Oil is now in session.
