May 16th, 1888: Tesla's Speech Before AIEE
"A New System of Alternate-Current Motors and Transformers" paper was read before the American Institute of Electrical Engineers (now the IEEE) at Columbia University in New York.
Tesla sells patents for A.C. Polyphase System to George Westinghouse for $25,000 in cash, $50,000 in notes and a royalty of $2.50 per horsepower for each motor.
Tesla travels to Westinghouse headquarters in Pittsburgh to finalize the contract for the A.C. Polyphase system and to help develop his motor. He stays there for around one year.
Tesla was introduced to Alfred S. Brown, director of Western Union, and Charles F. Peck, a New York City attorney, who were sold on his alternating current system after he demonstrated his "Egg of Columbus." Tesla agreed to split his patents on a fifty-fifty basis in exchange for funding. Brown located the laboratory at 89 Liberty St. and the company filed for its first patent by the end of the month.
March, 1885: Tesla Electric Light Company
Investors approached Tesla and asked him to develop an improved arc lighting system. Although this was not the opportunity he had hoped for, the group was willing to finance the Tesla Electric Light Company in Rahway, New Jersey. The proud new owner set to work and invented a unique arc lamp of beautiful design and efficiency. After completing the work, Tesla was forced out of the company and left with nothing but worthless stock certificates. Tesla later referred to this as "the hardest blow" he'd ever received.
1885: Tesla Quits Edison
At some point during Tesla's employment, Edison promises to pay him $50,000 if he can improve the performance of Edison's D.C. dynamo. Tesla succeeds beyond Edison's expectations, but he reneges on his promise to pay Tesla. Edison is quoted as stating to Tesla, "You don't understand our American humor." Deeply hurt, Tesla resigns. Some accounts state that Edison offers Tesla a raise if he will reconsider but Tesla declined.
1886: Tesla's Winter Of Suffering
Betrayed by men he trusted, Tesla considered the winter of 1886/1887 a time of "terrible headaches and bitter tears." He was forced to work as a ditch digger for $2.00 per day and questioned the value of his education.
June 6th, 1884: Tesla Arrives In New York
In the spring, Tesla, with funds provided by Uncles Petar and Pajo, packed his gear and caught the next boat for America. His trip didn't start too smoothly because his ticket, money and some of his luggage were stolen.
To make matters worse, a mutiny broke out on the ship and Tesla was nearly thrown overboard. Through his strong resolve, Tesla was not deterred. He arrived in New York a few weeks later with four cents in his pocket, a few poems and remnants of his belongings.
June 7th, 1884: Tesla Meets Edison
Some accounts state that Tesla started the very day he arrived in New York. Others put his start date on the following day. Regardless of the discrepancy, we know that Edison essentially hired Tesla on the spot but would hear nothing of his A.C. power system.
Tesla was soon dispatched to Henry Villard's ocean liner, the Oregon, the first boat ever to have electric lighting. The set of dynamos that powered the ship were badly damaged and Edison was amazed to learn that Tesla had repaired them.
He was quoted as calling Tesla "a damn good man." While Tesla worked for Edison he also installed and repaired incandescent and arc lamps, reassembled D.C. generators and designed twenty-four different types of machines that became standards replacing original Edison designs.
The dynamo aboard the Oregon shortly after Tesla's repair.