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.This figure is, apparently, too high.According to a census of central stations in the UnitedStates conducted by T.Commerford Martin (Electrical World,March 14, 1914) the horsepower of generators in operationin 1902 was 1,620,000 and in 1907 the figure had risen to6,900,000.On a pro rata, per-year basis, this would makethe figure for 1905, the year when Tesla's first patentsexpired, 5,000,000.During this period many manufacturerswho had been using steam power installed dynamos in theirfactories and operated isolated plants.These would not beincluded in the central-station figures and, if added,would bring the total horsepower to perhaps 7,000,000.Tesla would have been entitled to $7,000,000 royalties onthis equipment, on the basis of his $1-per-horsepowerarrangement.In addition he would have been entitled toroyalties on motors that used the power generated by thesedynamos.If only three quarters of the current generatedwere used for power, this would have entitled him toadditional royalties of $5,000,000, or a total of$12,000,000.)It would be a tough job for any executive, no matter howshrewd or clever, to talk a man out of a contract thatwould net him many millions of dollars, or induce him toaccept a reduction in rates amounting to millions.Westinghouse called on Tesla, meeting him in the same SouthFifth Avenue laboratory where he had purchased the patents70 four years before.Without preliminaries or apologiesWestinghouse explained the situation."your decision," said the Pittsburgh magnate, "determinesthe fate of the Westinghouse Company.""Suppose I should refuse to give up my contract; what wouldyou do then?" asked Tesla."In that event you would have to deal with the bankers, forI would no longer have any power in the situation,"Westinghouse replied."And if I give up the contract you will save your companyand retain control so you can proceed with your plans togive my polyphase system to the world?" Tesla continued."I believe your polyphase system is the greatest discoveryin the field of electricity," Westinghouse explained."Itwas my efforts to give it to the world that brought on thepresent difficulty, but I intend to continue, no matterwhat happens, to proceed with my original plans to put thecountry on an alternating-current basis.""Mr.Westinghouse," said Tesla, drawing himself up to hisfull height of six feet two inches and beaming down on thePittsburgh magnate who was himself a big man, "you havebeen my friend, you believed in me when others had nofaith; you were brave enough to go ahead and pay me amillion dollars when others lacked courage; you supportedme when even your own engineers lacked vision to see thebig things ahead that you and I saw; you have stood by meas a friend.The benefits that will come to civilizationfrom my polyphase system mean more to me than the moneyinvolved.Mr.Westinghouse, you will save your company sothat you can develop my inventions.Here is your contractand here is my contract--I will tear both of them to piecesand you will no longer have any troubles from my royalties.Is that suficient?"Matching his actions to his words Tesla tore up thecontract and threw it in the waste basket; andWestinghouse, thanks to Tesla's magnificent gesture, wasable to return to Pittsburgh and use the facilities of thereorganized company, which became the present WestinghouseElectric and Manufacturing Company, to make good his71 promise to Tesla to make his alternating-current systemavailable to the world.Probably nowhere in history is there recorded somagnificent a sacrifice to friendship as that involved inTesla's stupendous gift to Westinghouse of $12,000,000 inunpaid royalties, although Westinghouse personally receivedonly indirect benefits from it.It is also probable that the failure to pay Tesla theseroyalties resulted in one of the greatest handicaps toscientific and industrial progress which the human race hasexperienced
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