The Real Story Behind Charles Steinmetz and Ford’s $10,000 Generator Fix

Knowing where to mark “X”.

My love for exploring technology history was inspired by learning the stories of characters such as Steinmetz who worked in an different era, where technology was at its nascency and there was a lot of uncover. And they did with traditional tools, a paper and a pen.

This is the story of Charles Proteus Steinmetz, the legendary electrical engineer and one of General Electric’s greatest minds. During my time working at GE’s historic Schenectady plant, my team was based in Building No. 2—one of the oldest structures on site. The building was nearly deserted, with only our team occupying its vast, echoing halls. In my spare moments, I would wander through its empty offices, imagining the bustling activity it once held. Decades ago, this space had been alive with thousands of workers and hundreds of engineers, but now, silence had replaced the vibrant hum of innovation.

In the basement of the building, was a lab – it was a lab where Steinmetz used to work.

Historic Fact: GE Research Lab was established at the suggestion by C.P Steinmetz.

Steinmetz outside Building no. 2, GE plant Schenectady NY.

An interesting anecdote which I am recounting below, probably apocryphal, was originally told by Charles M. Vest, President of the Massachusetts Institute of Technology, during commencement on June 4th, 1999. 

A version of this famous story

When a massive generator at Henry Ford’s plant broke down, none of his in-house engineers could fix it. So he called in Charles Proteus Steinmetz — a 4-foot-tall genius who revolutionized electrical engineering.

Steinmetz arrived with nothing but a pencil, a notebook, and a cot. He spent two days observing the machine, calculating in silence.

Then, he asked for a ladder and a piece of chalk.

He climbed up the generator, marked a small X, and said,
“Remove this panel and take out 16 turns of wire.”

The engineers followed his instructions — and the generator roared back to life.

A few days later, Steinmetz sent Ford a bill: $10,000.

Surprised, Ford asked for an itemized invoice.

Steinmetz replied:
Marking the spot with chalk: $1
Knowing where to mark: $9,999

The takeaway being that, expertise is something you pay for, as in hindsight everything looks easy.

Fact or Fiction

My curious self wondered if any part of the story was true. So, I fact checked this and I found a link to an old audio recording. The story in the recording seems more plausible. While, Steinmetz never marked X or any letter, nor did he tap an hammer, nor did he asked to remove 16 turns of wire – it did involve the generator and Henry Ford.

It so happens, that he fixed the generator himself, by using a ladder and some tools. And, he did send a bill for $10,000, and at Ford’s request itemized it as $1 for using the ladder and $9999 for his expertise.

And no he did not arrive with a cot.

Further Reading

  1. Steinmetz: https://edisontechcenter.org/CharlesProteusSteinmetz.html
  2. GE Research Lab, history: https://edisontechcenter.org/GEresearchLab.html

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