section_path: AC and the induction motor
section_name: AC and the induction motor
paragraph_text: AC and the induction motor
  
  In late 1886, Tesla met Alfred S. Brown, a Western Union superintendent, and New York attorney Charles Fletcher Peck. The two men were experienced in setting up companies and promoting inventions and patents for financial gain. Based on Tesla's new ideas for electrical equipment, including a thermo-magnetic motor idea, they agreed to back the inventor financially and handle his patents. Together they formed the Tesla Electric Company in April 1887, with an agreement that profits from generated patents would go 1 ⁄ 3 to Tesla, 1 ⁄ 3 to Peck and Brown, and 1 ⁄ 3 to fund development. They set up a laboratory for Tesla at 89 Liberty Street in Manhattan, where he worked on improving and developing new types of electric motors, generators, and other devices.
  
  In 1887, Tesla developed an induction motor that ran on alternating current (AC), a power system format that was rapidly expanding in Europe and the United States because of its advantages in long-distance, high-voltage transmission. The motor used polyphase current, which generated a rotating magnetic field to turn the motor (a principle that Tesla claimed to have conceived in 1882). This innovative electric motor, patented in May 1888, was a simple self-starting design that did not need a commutator, thus avoiding sparking and the high maintenance of constantly servicing and replacing mechanical brushes.
  
  Along with getting the motor patented, Peck and Brown arranged to get the motor publicized, starting with independent testing to verify it was a functional improvement, followed by press releases sent to technical publications for articles to run concurrently with the issue of the patent. Physicist William Arnold Anthony (who tested the motor) and Electrical World magazine editor Thomas Commerford Martin arranged for Tesla to demonstrate his AC motor on 16 May 1888 at the American Institute of Electrical Engineers. Engineers working for the Westinghouse Electric & Manufacturing Company reported to George Westinghouse that Tesla had a viable AC motor and related power system—something Westinghouse needed for the alternating current system he was already marketing. Westinghouse looked into getting a patent on a similar commutator-less, rotating magnetic field-based induction motor developed in 1885 and presented in a paper in March 1888 by Italian physicist Galileo Ferraris, but decided that Tesla's patent would probably control the market.
  
  In July 1888, Brown and Peck negotiated a licensing deal with George Westinghouse for Tesla's polyphase induction motor and transformer designs for $60,000 in cash and stock and a royalty of $2.50 per AC horsepower produced by each motor. Westinghouse also hired Tesla for one year for the large fee of $2,000 ($ 67,800 in today's dollars) per month to be a consultant at the Westinghouse Electric & Manufacturing Company's Pittsburgh labs.
  
  During that year, Tesla worked in Pittsburgh, helping to create an alternating current system to power the city's streetcars. He found it a frustrating period because of conflicts with the other Westinghouse engineers over how best to implement AC power. Between them, they settled on a 60-cycle AC system that Tesla proposed (to match the working frequency of Tesla's motor), but they soon found that it would not work for streetcars, since Tesla's induction motor could run only at a constant speed. They ended up using a DC traction motor instead.