Insull, Samuel

Samuel Insull (1859–1938) was a tycoon's tycoon who used and often abused public relations to craft a financial empire that eventually toppled, leading to his indictment on charges of mail fraud, violation of federal bankruptcy law, and embezzlement. He was acquitted. Eventually in financial ruin and ill health, the career ended for this master of publicity, promotions, and government relations, although he was never a practitioner by that name. In 1901, he created one of the first corporate public relations departments to forge favorable opinion on the part of customers and government officials.

His business career began in 1882, when he became Thomas Edison's private secretary. He participated in the battle of the currents, which convinced him of the power of public relations even though Edison lost that battle to George Westinghouse. Through the battle, Insull realized the potent impact of public policy for giving rationale to specific business activities.

Insull served Edison as the general manager of his business organizations, which were growing and becoming more varied. Through their efforts, they created Edison General Electric and eventually Chicago Edison Company. Over time, this business and others became part of what was generally called the “Insull Empire.”

Insull realized that no product—even electricity—could survive, let along prosper, without publicity and promotion. He engaged in such activities as using publicity associated with electric trolleys in Chicago to demonstrate the virtues of this power source. Substantial attention was focused on electricity through the 1893 Chicago World's Fair; the Tower of Light, an illuminated Ferris wheel; and many displays to help residential users of power understand the industry. He engaged in mass marketing through the magazine Electric City. This publication was full of ideas favoring lifestyle advantages and cost savings for users of electricity. The sorts of marketing appeals he loved featured the use of electricity as a mark of affluence. Electric lights glowing in windows would demonstrate to neighbors the financial achievements of the homeowner.

Merger was a vital part of his empire building. He realized the need for regulated monopoly as a way to protect investments in electricity generation and distribution. Not only did he see the need to manufacture products that used electricity, such as the General Electric refrigerator, but he also wanted to extend electricity to every part of the country. This last mission motivated him to promote government financing of rural electrification.

Insull, along with other tycoons, recognized the need to create various opinions that led to favorable acceptance and treatment of various business activities. No industry or product is merely accepted and taken for granted. Acceptance must be crafted, and public relations plays a vital part in that fabric of [Page 425]thought. In 1897, Insull convinced the city council of Chicago to grant his company a 50-year franchise to sell electricity as a regulated monopoly operating in the public interest. Far from creating political corruption as the basis of business dealing, Insull merely became very good at what was established practice long before his time. He realized that without oiling politicians with self-serving advantages, businesses could be brought to a standstill.

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