Andrew Carangie (1835-1919)

Early Life:

Andrew Carnegie was born in Dunfermline, Scotland on November, 25 1835. He was the son of William Carnegie, a handloom weaver. The introduction of power looms and the depression of 1848 in Britain induced the Carnegie’s to move to United States, where they settled at Allegheny, Pennsylvania, now is known as a part of Pittsburgh. He worked in the cotton factory with his father making $1.20 a week. He was a bobbin boy at the factory. He loved reading, Shakespeare, and music with a cultivated taste. His Father died in 1855, and Andrew began the leader of the family. At age 14, he became a messenger boy at the Pittsburgh Telegraph Office. Within two years, he became a Telegraph operator.

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Andrew Carnegie as a young fellow
Andrew Carnegie as a young fellow


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Early Career:

Carnegie impressed Thomas A. Scott in 1853 when he came to Pittsburgh. He hired him as a personal clerk and telegraph operator for $35 a month, which was soon raised to $50. When Thomas A. Scott became vice president of Pennsylvania Railroad in 1859, Andrew became the superintendent of the Pittsburgh division. During the Civil War, Carnegie followed Scott to Washington to organize the military telegraph system.

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Thomas A. Scott-The Man who started Carnegie's rise in his career
Thomas A. Scott-The Man who started Carnegie's rise in his career


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Steel Business: Carnegie began working in the steel business in 1872. His mills dominated all others because he always used the latest technologies and methods, including with finances. He was the first major producer of steel in the United States. He was a tough guy that pushed his workers hard to keep things running efficiently. His business tactics were a major reason why the United States changed from Agriculture nation to an Industrial nation. Carnagie Steel represented a transition from privatley hld businesses to corporations with ownership seperate from managment. His company was sett up as a series of partnerships. He used to Vertical Integration to make his business grow. The scope of his operation was Henry Clay Frick.

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Henry Clay Frick: Corporate Owner of Carnagie Steel, good business man to Carnagie
Henry Clay Frick: Corporate Owner of Carnagie Steel, good business man to Carnagie



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Homestead Strike of 1892:

As any company, the workers of Carngie Steel were not happy. Most of the employees belonged to a union. Carnagie and Henry Clay Frick, had managed to keep union laorers under control at thier othr steel mills. The union at Homestead, had power, power the other mills didn't have.



workers at Homestead
workers at Homestead


In June 1892, the union expressed its dissatisfaction with conditions at the Homestead mill but indicated they were willing to negotiate. Carnagie was in Scotland at the time, so lucky for all, Frick was in charge. With the rage of the workers, Frick shut down the mill and locked out 3,800 workers. On July 6th, workers seized the mil and sealed off the town from strikebreakers. Frick then called in the Pinkerton Detective Agency. 300 ment showed up and faught the workers for 12 hours. The Pinkertons were willing to surrender four times, but every time the workers shot down the flag. Finally, the surrender was taken, but the surviving Pinkertons were brutally beaten.

The Pinkerton Detective Agency Badge
The Pinkerton Detective Agency Badge

Frick, being stubborn called in 8,500 National Guard Troops to allow strikebreakers to go work at the mill. Carnagie got word of whatws going on, and yelled at Frick for his lack of judgement. The partnership ended as well as thier friendship. In the end of all this madness, the union workers failed to achieve any of thier goals. Almost 300 of them went back to work. Raging with anger, Carnagie cut thier wages way down, and crushed the union in the mill.

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Trials of 1890:====

It presented 3 challenges. Two of them were surmounted, and one left a deep hurt and stained Carnegie's repuation. The nationwide depression of 1893-1896 resulted in plant shut downs, mass unemployment, and collasping of the markets. Carnegie's business pushed prices down, retained it workers and profits.

Carangie finnally met competion with J.P. Morgan and Company in New York and the Moore Brothers in Chicago. These companies were interested in stability in an industtry with excess capacity and flucating market conditions. They wanted controlled prices, prorations of the market, and tying agreements rather than Carnegie's ruthless competition with all comers. They made heavy steel and light s

teel and because they threatened to cut down their purchases from Carnegie's unless he was willing to play their game.
J.P. Morgan-A very powerful business man that bought Carnegie Steel
J.P. Morgan-A very powerful business man that bought Carnegie Steel

Carnagie was thinking of selling out and retiring in 1889. More threats came in from the West and the East and were too much for his fighting spirit and his sense of outrage. He would start to make new things like tubes, wires, nails, and hoop and cotton ties when he expanded his sales activities in the West. He ordered a new tube plant on Lake Erie at Conneaut, which would be a great transportation center with harbors and boats to run to Chicago and a railroad to connect with Pittsburgh, and made production better.

This buisness was then originated to the name of U.S. Steel Corporation in 1901, through the work of J.P. Morgan. His main point was to buy Carngie off at his own price. The Carnegie Company was bought off for about $500 million dollars. Carnegie's personal share was $225 million, which he insisted on having the corporations first-mortage bonds.

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Philanthropy:

Once Carnagie was retired, he started to give all of his money away to charities. Starting off in his home town, in 1903 he established the Dufermline Trust for the benefit of the town. One of his first acts upon reitiring from business was to establish a pension fund for Carnegie employees. In 1895, he endowed the Carnegie Institute of Pittsburgh, the Carnegie Trust for the Univerrsities of Scotlnd in 1901 and then the Carnegie Institution of Washington in 1902. In addition to his, he gave many
The Carnagie Library in Colorado
The Carnagie Library in Colorado
gifts to smaller enducational institutions in the United States and for free public libraries.

He then created the Carnegie's Hero Fund was established in the United States in 1904 and extended abroad. He also did work with the Peace Palace at The Hague in 1903 and the Carnegie Enowment for International Peace in 1910 to a grant of $50,000 to help the radium research of Marie Curie. He wasn't religious, but he purchased over 7,500 church organs. In 1911, Carnegie started one of the largest philanthropic groups in the 21st century, the Carnegie Corporation. The Carnegie Corporation is a private grant making foundation which promoted the advancement of knowledge and understanding amongst U.S. citizens. Even today, the Carnegie Corporation is involved in education, race relations, public policy and poverty. In total, Carnegie had given away $350 million, and another $30 million was given away in his name after his death.




Gospel Of Wealth:
The Gospel Of Wealth
The Gospel Of Wealth
While Carnegie was one of the richest men of his time, he started out very poor, therefore understanding what that life is like. In 1889, he published “The Gospel of Wealth” in North American Review, in which Carnegie described his belief that the wealthy were responsible for using their money to help give back to society. He felt that money was God given, and that the poor were poor because God wanted it that way. “The man of wealth,” he declared, must act as “trustee and agent for his poorer brethren, bringing to their service his superior wisdom, experience, and ability to administer, doing for them better than they would or could do for themselves.” (American Eras Vol. 8). Carnegie contradicted himself many times regarding this subjet. He understood what poverty was like and believed the wealthy should give back to society, but believed that God wanted the poor to be poor and continued to cut his worker’s wages and keep them in poverty.




Legacy:

Andrew Carnagie
Andrew Carnagie
Andrew Carnegie and his "rags to riches" story are well known and respected, even today. His works in the steel industry and fortune are two parts of his legacy, but what he gave back is worth so much more. His philosophy in the Gospel of Wealth was seen as an important statement in the industry of that time. His philanthropy works are especially important and appreciated today. The legacy of Andrew Carnegie is an important part of the United States history and will continue to live on.




Time Line of His Life:

1835- November 25, Andrew Carnegie is born at Dufermline, Fife.
1848- May 17, Carnegie's leave for America. July 6, they arrive at New York and journey to Pittsburgh. Andrew begins work as a bobbin boy.
1849- Carnegie starts work as messenger at O'Reilly Telegraphs.
1850- Carnegie progressesto telegraph operator.
1853- Carnegie becomes personal telegraph operator and private secretary to Thomas A. Scott, Superintendent of the Western Division of the Pennyslvania Railroad.
1856- Carnegie signs deal with the Woodruff Sleeping Car. Co.
1859- Carnegie becomes Superintendentof the Western Division of the Pennsylvania Railroad Co.
1867- April, Carnegie and others organize Keystone Telegraph Co.
1870- December 1, Carnegie manufactures steel.
1872- November 5, New company formed to forge steel.
1881- April 1, Carnegie Bros & Co. Ltd formally established.
1887- Marries Louise Whitfield
1892- July 1, Foundation of Carnegie Steel Co.
1897- Only daughter, Margaret was born.
1900-Carnegie Co. established
1903- August 3, Creation of Carnegie Dunfermline Trust.
1911-Carnegie Corporation of New York founded.
1919- August 11, Death of Andrew Carnegie




Citation:


"Andrew Carnegie." Encyclopedia of World Biography. 2nd ed. Vol. 3. Detroit: Gale, 2004. 309-312. Gale Virtual Reference Library. Web. 16 Feb. 2011.

Beuttler, Fred W. "Carnegie Corporation of New York." Dictionary of American History. Ed. Stanley I. Kutler. 3rd ed. Vol. 2. New York: Charles Scribner's Sons, 2003. 55-56. Gale Virtual Reference Library. Web. 16 Feb. 2011.

"Carnegie, Andrew (1835-1919)." American Eras. Vol. 8: Development of the Industrial United States, 1878-1899. Detroit: Gale, 1997. 111-112. Gale Virtual Reference Library. Web. 16 Feb. 2011.

"Carnegie, Andrew." U*X*L Encyclopedia of U.S. History. Sonia Benson, Daniel E. Brannen, Jr., and Rebecca Valentine. Ed. Lawrence W. Baker and Sarah Hermsen. Vol. 2. Detroit: UXL, 2009. 241-244. Gale Virtual Reference Library. Web. 16 Feb. 2011.

Johnson, Arthur M. "Carnegie, Andrew (1835-1919)." Encyclopedia Americana. Grolier Online, 2011. Web. Jan. 2011.

Lamont-Brown, Raymond. Carnegie: the Richest Man in the World. Stroud: Sutton, 2005. Print.

Nasaw, David. Andrew Carnegie. New York: Penguin, 2006. Print.