Samuel Insull arrived in the United States in 1881 at age 21, wearing side whiskers specifically to appear older than his years. He rapidly transformed from a personal assistant for Thomas Edison into a central figure of the American electrical utility infrastructure, ultimately managing vast holding companies across the Midwest before his business empire collapsed during the Great Depression.
Early Career and Edison Partnership
Born in London on November 11, 1859, to Insull Insull and Emma Short, he began as an apprentice clerk at 14. He became a stenographer at Vanity Fair before securing a role as private secretary to Colonel George Gouraud, the London representative for Thomas Edison's telephone companies. After moving to the United States to serve as Edison's personal secretary, he managed electrical power stations and participated in the 1889 founding of Edison General Electric. Although he played a role in the 1892 merger that created General Electric, he moved to Chicago after failing to secure the company presidency.
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In 1892, he became president of the Chicago Edison Company. He achieved profitability by implementing a demand-metered billing system after observing English shops, which allowed for tiered rates based on usage times. This strategy reduced bills for many homeowners by 32% by 1897. He later merged the Chicago Edison Co. with the Commonwealth Electric Light & Power Co. in 1907 to form Commonwealth Edison Co. By 1920, the firm employed 6,000 workers, served 500,000 customers, and generated nearly $40 million in annual revenue.
Holding Companies and Expansion
He expanded his influence by acquiring diverse utility and railroad interests, including the Chicago Rapid Transit Company and the Chicago North Shore and Milwaukee Railroad. He advocated for industry regulation, viewing utilities as natural monopolies that benefited from standardized service and eliminated infrastructure duplication. His operations utilized vertical integration, controlling coal extraction and transport via the Chicago & Illinois Midland Railway to supply generating stations like the Fisk and Crawford stations. In 1929, he oversaw the completion of the Chicago Civic Opera House.
Financial Collapse and Legal Proceedings
The Great Depression triggered the collapse of his Midwest holding company empire. Critics alleged he profited by selling worthless stock to investors who relied on his professional status. Following his downfall, he faced a seven-week trial alongside 16 co-defendants. After two hours of jury deliberation, they were acquitted of all charges. He spent his final years in Paris, where he died on July 16, 1938. He is buried at Putney Vale Cemetery.
Fast facts
- Born: November 11, 1859, London
- Died: July 16, 1938, Paris
- Occupations: Businessperson, entrepreneur
- Naturalized US Citizen: 1896
- Burial Site: Putney Vale Cemetery
- Major Project: Chicago Civic Opera House
- Notable Merger: Commonwealth Edison Co. in 1907
Questions readers ask
Did Samuel Insull successfully manage his utilities during the Great Depression?
No, his expansive Midwest holding company empire collapsed during this period.
Was he convicted of financial fraud?
No, he and his co-defendants were acquitted of all charges following a trial in the 1930s.
