Nikola Tesla, a Serbian electrical engineer, claims…

Nikola Tesla, a Serbian electrical engineer, claims in 1885 that he can redesign Edison's inefficient motor and generators, making an improvement in both service and economy.

According to Tesla, Edison remarked, "There's fifty thousand dollars in it for you—if you can do it".

This has been noted as an odd statement from an Edison whose company was stingy with pay and who did not have that sort of cash on hand.

After months of work, Tesla fulfills the task and inquires about payment.

Edison, claiming that he was only joking, replied, "Tesla, you don't understand our American humor".

Instead, Edison offers a US$10 a week raise over Tesla's US$18 per week salary; Tesla refuses the offer and immediately resigns.

Tesla had begun working at the Continental Edison Company in France in 1882, designing and making improvements to electrical equipment; he had relocated to New York City in 1884.

During his trip across the Atlantic, his ticket, money and some of his luggage had been stolen and he was nearly thrown overboard after a mutiny broke out on the ship.

Edison had hired Tesla to work for his Edison Machine Works.

Tesla's work for Edison had begun with simple electrical engineering and quickly progressed to solving some of the company's most difficult problems.