Writer 1879: Solitary Journey in France

Chapter 655 Collapse! (Bonus chapter for the Alliance Leader, thanks to reader "Yuema Tianshan"!)

That afternoon, the ballroom of the Fifth Avenue Hotel in New York was temporarily converted into a press conference venue.

The hall was already packed with people. Reporters from all the major New York newspapers had come out in droves, along with financiers, engineers, and curious citizens who had rushed over upon hearing the news.

The hushed conversations created a buzzing background noise, and everyone's eyes were focused on the empty stage.

At exactly 2:00, Lionel Sorel walked in first, followed by John Pierpont Morgan Jr. and Nikola Tesla.

The three walked to the long table and sat down. Lionel sat in the middle, Morgan Jr. on the left, and Tesla on the right.

There were no opening remarks, no pleasantries. Lionel picked up a document in front of him and said, "I've invited you all here today to announce two things."

The first thing Sorel-Tesla Electric will do is open-source its patent for a three-phase induction motor.

As soon as he said that, a gasp of surprise erupted from the audience.

Lionel waited a few seconds until the noise subsided before continuing, "Any company that wants to manufacture this kind of motor only needs to pay us a patent licensing fee."

Alternatively, if you possess technology that interests us, we can also engage in patent swapping.

Seeing the confused expressions on the faces of some reporters in the audience, he added, "Our patent license is a one-time grant; we do not charge patent royalties based on power output."

This statement silenced the audience completely, and the reporters looked stunned, clearly not quite able to process what had just happened.

"We don't charge patent fees based on equipment power, that is, per horsepower. As long as you are licensed, you can use this technology to manufacture motors of any power."

"Sorel-Tesla Electric" only charges the initial fixed licensing fee; thereafter, no additional fees are charged.

"Wow—!" Now everyone understood, and they all exclaimed even louder.

Thomas Edison's passion for patents and his demanding nature are well-known. He was obsessed with vertical integration in industries, especially in the power sector.

Edison Electric took on all aspects of the business, from equipment manufacturing and electricity sales to power plant construction, and even made its own screws.

Thomas Edison believed that only in this way could he maximize his profits.

He leveraged his control over most of the core patents for DC motors and systems to establish an extremely stringent and expensive licensing rule.

One of the rules is that any DC generator produced under his license must pay him a patent royalty of $2.5 per horsepower generated.

This fee is simply astronomical! It completely cuts off any company or individual attempting to build their own power plant or enter the power industry.

Because, in the end, the cost of purchasing his license and then producing generators himself might be higher than buying "Edison Electric" finished products directly.

This has led to almost no companies being willing to buy his licenses; people either buy his products and electricity directly, or simply don't use electricity at all.

However, this is also a major reason why the promotion of direct current is slow.

Edison had the typical extreme personality trait of "if I can't make the patents disappear completely, I'd rather let them rot in my hands."

The high wall of patents he built did protect his empire, but it also severely hampered the development of the entire power industry.

Lionel's move is tantamount to undermining the business model of DC power.

When the patent for "three-phase induction motor" entered the market, hundreds and thousands of companies, large and small, were manufacturing, promoting, and selling AC generators and motors—

Any debate about whether direct current or alternating current is superior will become meaningless.

The market will vote with its feet. More efficient, lower-cost, and longer-range AC systems, coupled with readily available key motor patents…

Everyone can imagine that alternating current will sweep away all the barriers that direct current has painstakingly built, like a flood.

The reporters in the audience whispered excitedly, already sensing the impending headlines and a major industry upheaval.

Without pausing, Lionel immediately announced the second piece of news.

"This year, Sorel-Morgan Electric will launch a new device for individual electricity users. We call it a 'meter'."

He explained briefly: "'Electricity meters' can accurately measure how much 'electricity' each user uses. With them, power companies can charge precisely by building or even by household."

He swept his gaze across the crowd again, making sure everyone understood the weight of his next words: "This will completely end the current model of charging by the number of light bulbs."

"boom--!"

If the first piece of news was a blow to Edison's technological barriers, then this second piece of news was a fatal blow to "Edison Electric".

Edison's "central power station" power supply model adopted the "charge per light bulb" approach.

Because it is impossible to accurately measure how much electricity each user actually uses, the power station can only charge monthly fees based on the number of light bulbs installed in each user's home.

To ensure that power plants do not incur losses, power companies will inevitably "overestimate" some costs, passing on costs such as line losses, maintenance, and potential risks.

However, this fixed fee becomes a significant barrier for less affluent families or those who simply want to use electricity for a small business.

They might only need to turn on the lights for one or two hours a day, but have to pay for the whole day, which greatly inhibits the application of electricity in areas other than lighting.

People might think: "Electric lights are bright, but they're too expensive. Besides illuminating a dark room, what else can I use them for? It doesn't seem worthwhile." The invention of the "electricity meter" perfectly solves this problem. Users pay only for the electricity they use, transparently and willingly.

This will greatly lower the barrier to electricity use, making it truly possible for electricity to enter every household and into small shops and workshops on the streets.

The press box erupted in cheers. Shouts of questions rose and fell.

"Mr. Sorel! What exactly is the patent licensing fee?"

What is the working principle of an electricity meter? How is accurate measurement ensured?

Does this mean that the price of electric lights will drop significantly?

……

Lionel ignored all the shouts and questions. He expressionlessly put down the documents in his hand and stood up. Morgan Jr. and Tesla also stood up.

"That's all I wanted to say," Lionel said finally, his voice completely flat.

Then, without hesitation, he turned and left the stage, exiting through a side door. Morgan Jr. and Tesla followed closely behind.

The hall was left filled with stunned reporters and guests. Before they could fully recover from the shock of the two bombshell announcements, the main figure of the press conference had already disappeared.

After a brief moment of stunned silence, an even greater uproar erupted. Reporters rushed towards the door, trying to catch up with Lionel, but were politely stopped by hotel staff.

They could only discuss excitedly with each other, quickly jotting down the key points of the report in their notebooks.

Everyone knows that tomorrow morning, the headlines of newspapers throughout New York, the United States, and even the world will be filled with these two revolutionary news stories.

------------

Edison's private study in Menlo Park, New Jersey.

Thomas Edison sat behind his large desk, several New York newspapers from that morning spread out in front of him.

Those glaring headlines and articles stung his eyes like red-hot needles.

Samuel Insall stood by the desk, hands at his sides, barely daring to breathe. He could sense the anger emanating from his boss, a anger born of humiliation.

Edison had been sitting there for almost an hour, flipping through all the newspapers and reading each one carefully, but he hadn't said a word.

Finally, he spoke: "Insar."

“Yes, boss.” Samuel Insall immediately stepped forward.

"Get ready. I'm going to England. The sooner the better."

Samuel Insall paused for a moment: "Britain? Now? Boss, in New York..."

Edison interrupted him: "New York? New York is finished! Morgan betrayed me; that French boy deceived everyone with intrigue and sensationalism."

But Britain hasn't yet. Our future, our hope, lies in Britain!

His eyes held the look of a trapped beast that had found its last way out in a desperate situation.

"The London power plant project is progressing well, and we have friends in Parliament and the Cabinet. Britain is the last bastion of DC power. I absolutely cannot lose it."

Samuel Insall understood. In the American market, under the onslaught of alternating current technology and "open patents," as well as "electric meters," the decline of direct current was irreversible.

At least in the short term, Edison will find it difficult to turn the tide here. But Britain is different!

Thanks to his immense international reputation and early lobbying efforts, Edison had successfully secured the adoption of direct current (DC) systems for London's first major municipal lighting project.

That was his last and most important stronghold. As long as Britain persisted in using direct current, its influence was enough to change the habits of the entire world.

"I'll arrange the tickets and itinerary right away." Samuel Insall asked no more questions and turned to leave quickly.

Silence returned to the study. Edison sat alone in the dim light, like a cold stone statue.

His gaze was blank as he stared ahead, but his mind was churning with turbulent emotions.

Lionel Sorel… that damned, inexplicable French writer! He knows nothing about real engineering! He just plays with concepts and sways people!

In addition, they use flashy but impractical performances and seemingly generous but actually malicious business tactics to disrupt order!
Open patents? Only fools and spendthrifts would do that! Patents are the lifeblood of inventors, the guarantee of order and value!

Pay-as-you-go? Sounds great, but it means endless metering disputes, equipment maintenance costs, and unpredictable revenue!
Only fixed fees constitute a stable and reliable business model!
And that Tesla… traitor! Has he forgotten how generously he was made to work for Edison Electric?
This is an opportunity that countless electrical engineers around the world dream of! Yet he chose to betray himself and even become his mortal enemy.

Thinking about this, Thomas Edison felt a strong wave of dizziness and nausea.

The very foundation upon which he built everything—technological authority, business model, patent barriers—was crumbling before his very eyes.

He cannot sit idly by and wait to die. Britain must hold on!

(Third update, thank you everyone, please vote with monthly tickets!)

(End of this chapter)