Charles Proteus Steinmetz

Charles Proteus Steinmetz (1865-1923) was born in Breslau, Silesia, Germany. He developed theories for alternating current that made possible the expansion of the electric power industry in the United States. [1], [1]

Steinmetz studied electricity in Germany. He became a socialist but had to leave Germany when Bismarck began rounding up socialists. He immigrated to the United States where he eventually went to work for General Electric [1]. His most influential work was to develop a theory of magnetic hysteresis. When Schenectady, where he was living, elected a socialist mayor, Steinmetz began serving in the city government. In his later years Steinmetz became interested in lightning.

Here's an interesting anecdote, as told by Charles M. Vest, President of the Massachusetts Institute of Technology, during commencement on June 4th, 1999. General Electric's facilities in Schenectady, New York. GE had encountered a performance problem with one of their huge electrical generators and had been absolutely unable to correct it. Steinmetz, a genius in his understanding of electromagnetic phenomena, was brought in as a consultant -- not a very common occurrence in those days, as it would be now.

Steinmetz also found the problem difficult to diagnose, but for some days he closeted himself with the generator, its engineering drawings, paper and pencil. At the end of this period, he emerged, confident that he knew how to correct the problem.

After he departed, GE's engineers found a large "X" marked with chalk on the side of the generator casing. There also was a note instructing them to cut the casing open at that location and remove so many turns of wire from the stator. The generator would then function properly.

And indeed it did.

Steinmetz was asked what his fee would be. Having no idea in the world what was appropriate, he replied with the absolutely unheard of answer that his fee was $1000.

Stunned, the GE bureaucracy then required him to submit a formally itemized invoice.

They soon received it. It included two items:

1. Marking chalk "X" on side of generator: $1.

2. Knowing where to mark chalk "X": $999.

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