Statue of Liberty
Lighthouse Board and War Department (1886–1933)

When the torch was illuminated on the evening of the statue's dedication, it produced only a faint gleam, barely visible from Manhattan. The World characterized it as "more like a glowworm than a beacon." Bartholdi suggested gilding the statue to increase its ability to reflect light, but this proved too expensive. The United States Lighthouse Board took over the Statue of Liberty in 1887 and pledged to install equipment to enhance the torch's effect; in spite of its efforts, the statue remained virtually invisible at night. When Bartholdi returned to the United States in 1893, he made additional suggestions, all of which proved ineffective. He did successfully lobby for improved lighting within the statue, allowing visitors to better appreciate Eiffel's design. In 1901, President Theodore Roosevelt, once a member of the New York committee, ordered the statue's transfer to the War Department, as it had proved useless as a lighthouse. A unit of the Army Signal Corps was stationed on Bedloe's Island until 1923, after which military police remained there while the island was under military jurisdiction.

Wars and other upheavals in Europe prompted large-scale emigration to the United States in the late 19th and early 20th century; many entered through New York and saw the statue not as a symbol of enlightenment, as Bartholdi had intended, but as a sign of welcome to their new home. The association with immigration only became stronger when an immigrant processing station was opened on nearby Ellis Island. This view was consistent with Lazarus's vision in her sonnet—she described the statue as "Mother of Exiles"—but her work had become obscure. In 1903, the sonnet was engraved on a plaque that was affixed to the base of the statue.

Oral histories of immigrants record their feelings of exhilaration on first viewing the Statue of Liberty. One immigrant who arrived from Greece recalled:

I saw the Statue of Liberty. And I said to myself, "Lady, you're such a beautiful! You opened your arms and you get all the foreigners here. Give me a chance to prove that I am worth it, to do something, to be someone in America." And always that statue was on my mind.

The statue rapidly became a landmark. Originally, it was a dull copper color, but shortly after 1900 a green patina, also called verdigris, caused by the oxidation of the copper skin, began to spread. As early as 1902 it was mentioned in the press; by 1906 it had entirely covered the statue. Believing that the patina was evidence of corrosion, Congress authorized US$62,800 (equivalent to $2,130,000 in 2023) for various repairs, and to paint the statue both inside and out. There was considerable public protest against the proposed exterior painting. The Army Corps of Engineers studied the patina for any ill effects to the statue and concluded that it protected the skin, "softened the outlines of the Statue and made it beautiful." The statue was painted only on the inside. The Corps of Engineers also installed an elevator to take visitors from the base to the top of the pedestal.

On July 30, 1916, during World War I, German saboteurs set off a disastrous explosion on the Black Tom peninsula in Jersey City, New Jersey, in what is now part of Liberty State Park, close to Bedloe's Island. Carloads of dynamite and other explosives that were being sent to Russia for its war efforts were detonated. The statue sustained minor damage, mostly to the torch-bearing right arm, and was closed for ten days. The cost to repair the statue and buildings on the island was about $100,000 (equivalent to about $2,800,000 in 2023). The narrow ascent to the torch was closed for public-safety reasons, and it has remained closed ever since.

That same year, Ralph Pulitzer, who had succeeded his father Joseph as publisher of the World, began a drive to raise $30,000 (equivalent to $840,000 in 2023) for an exterior lighting system to illuminate the statue at night. He claimed over 80,000 contributors, but failed to reach the goal. The difference was quietly made up by a gift from a wealthy donor—a fact that was not revealed until 1936. An underwater power cable brought electricity from the mainland and floodlights were placed along the walls of Fort Wood. Gutzon Borglum, who later sculpted Mount Rushmore, redesigned the torch, replacing much of the original copper with stained glass. On December 2, 1916, President Woodrow Wilson pressed the telegraph key that turned on the lights, successfully illuminating the statue.

After the United States entered World War I in 1917, images of the statue were heavily used in both recruitment posters and the Liberty bond drives that urged American citizens to support the war financially. This impressed upon the public the war's stated purpose—to secure liberty—and served as a reminder that embattled France had given the United States the statue.

In 1924, President Calvin Coolidge used his authority under the Antiquities Act to declare the statue a national monument. A suicide occurred five years later when a man climbed out of one of the windows in the crown and jumped to his death.
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