The collapse of London-based financial institution Baring Brothers causes panic in the markets. Among those affected is Westinghouse, whose bankers are hounding him to terminate Tesla’s contract, including royalties, presumably because they want to put a stop to Westinghouse’s high research and development expenditures. Reluctantly, Westinghouse approaches Tesla and asks him to renounce the contract so he can save the company, and Tesla agrees. Tesla has always cared more about inventions and personal loyalty than about contracts and making money.
