The Two Patents That Built the Jet Agehttp://www.fool.com/investing/general/2013/04/02/the-two-patents-that-built-the-jet-age.aspx Alex Planes
April 2, 2013
On this day in economic and financial history...
April 2 is notable for two important patents, both of which have contributed greatly to the fortunes of two longtime components of the Dow Jones Industrial Average (INDEX: ^DJI). In fact, these two patents can be considered indirectly responsible for much of the modern industrial world's efficiency, as well as the success of other Dow components. As such, they may be two of the most underrated patents in American industrial history.
The motor of the world
Brayton's Ready Motor went on display at the Philadelphia Centennial Exposition in 1876, where it caught the eye of tinkerer George B. Selden. The sight of this chugging motor inspired Selden to create the "road engine," which was to become the first true patented automobile in the United States. This patent was to create such trouble for the early auto industry that it brought Henry Ford (NYSE: F) into a fierce legal fight that lasted for years. Before Ford's ultimate triumph in 1911, Selden used the patent and its defensive cartel to push many other automakers to either enter licensing agreements or go out of business. Once the threat of patent litigation cleared, the auto industry was free to develop along competitive lines, rather than legal ones -- and here Ford would triumph with its assembly line manufacturing process.
Although the auto industry transitioned away from Brayton-type engines very early in its history, the Brayton cycle informs the development of engines to this day. Gas turbines and air-breathing jet engines both operate under Brayton cycle principles -- which means that the underpinnings of virtually all modern airline flights were first patented more than 140 years ago. General Electric (NYSE: GE) leads the world in jet engines; this segment is worth more than $18 billion to the industrial conglomerate. GE also happens to be a major developer of gas generators, which makes the company -- which traces its origins to the same decade in which Brayton developed his engine -- perhaps the greatest beneficiary of Brayton's innovation.
Foiling high production costs -- for good
Aluminum is abundant in the Earth's crust and has been known since the discovery of clay-like bauxite (the predominant source of aluminum) in 1821. Early aluminum-refining efforts took multiple steps and required the application of electrical currents -- hardly an easy process in the days before widespread electrical generation. This made aluminum nearly on par with gold for rarity and prestige. Before Hall's process was developed, its status was "capped" when a pyramid of refined aluminum was used on the top of the Washington Monument. Wired recounts Hall's development: