J.P. Morgan meets twice with Nikola Tesla. Morgan controls most of the railroads in the eastern United States and played a key role in the formation of General Electric with Thomas Edison. In the late 1900s, he was also involved, with Andrew Carnegie, in the formation of United States Steel. He also attempted to purchase Guglielmo Marconi’s American patents on wireless transmission, but without success. He then decides to try Nikola Tesla. In both meetings, Tesla suggests to Morgan that wireless technology will replace telegraphs and telephones (an accurate prediction). He proposes forming two companies and insists that Morgan hold a 51% stake. But he keeps the meetings brief, undoubtedly out of fear of J.P. Morgan’s forceful personality, but perhaps also out of discomfort with the banker’s large, deformed nose. On March 4, J.P. Morgan agrees and finances the operation with $150,000. For Tesla, it’s an endorsement, but for Morgan, it was probably just a sideline: a few days later, he spends $550,000 on two paintings and $1 million on a donation to a hospital. Morgan likely supported Tesla at this stage as philanthropic funding for an advanced, but high-risk, scientific project. In any case, the funding did arrive for Tesla’s Wardenclyffe Tower venture, construction of which on Long Island began in November 1901.
