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Carnegie, Andrew Carnegie, Andrew Carnegie, <<kahr NAY gee or KAHR nuh gee,>> Andrew (1835-1919), was a Scottish-born American steel manufacturer. He was one of the wealthiest individuals of his time. Carnegie used his huge fortune to establish many cultural, educational, and scientific institutions. Early life. Carnegie was born on Nov. 25, 1835, in Dunfermline, Scotland. His father was a weaver. After power looms began to replace handweaving, the Carnegies immigrated to the United States in search of new opportunities. Andrew was then 12 years old. The family settled in Allegheny City, Pennsylvania, now part of Pittsburgh. Andrew worked in a cotton mill and later became a telegraph messenger. He taught himself to send telegraph messages and became a telegraph operator when he was 17. In 1853, Carnegie got a job as a clerk and telegraph operator for the Pennsylvania Railroad. He later became a secretary for one of the railroad's division superintendents, Thomas A. Scott. With Scott's help, Carnegie advanced in the firm and eventually succeeded Scott as superintendent. During the Civil War (1861-1865), Carnegie helped organize telegraph services for the Union Army. Rise to wealth. While working for the Pennsylvania Railroad, Carnegie invested in several iron companies. One was the Keystone Bridge Company, which built iron railroad bridges. He also purchased stock in an oil company and in the Woodruff Sleeping Car Company, which manufactured railroad sleeping cars. Carnegie left the Pennsylvania Railroad in 1865 to run his businesses. In 1872, Carnegie traveled to Europe to sell bonds to European investors. During his travels, he realized that the demand for steel would increase in the years ahead and decided to enter the steel industry. In 1873, he and several partners bought land near Pittsburgh and established the J. Edgar Thomson Works, which became the largest and most modern steel mill of its time. A nationwide business slump occurred in the United States from 1873 to 1879. Despite the slump, Carnegie expanded his steel company. During the early 1880's, business revived, and the demand for steel increased. Carnegie's mills earned millions of dollars. Another business slump began in 1883. Most steel companies suffered, but Carnegie's firm continued to expand. In 1883, Carnegie purchased the Homestead Works, one of the largest competing steel mills. He also bought a majority of the stock in a coke company established by Henry Clay Frick, an American industrialist, and made Frick one of his partners. © 2017 World Book, Inc. All rights reserved. WORLD BOOK and the GLOBE DEVICE are registered trademarks of World Book, Inc. Page 1 of 3 In 1892, Carnegie combined three of his companies and formed the Carnegie Steel Company. Frick became chairman of the new firm and took responsibility for its daily operation. Carnegie handled the company's investments and long-range planning. Carnegie's financial success resulted partly from his sales ability. He also created a talented management team and outbid his competitors by paying careful attention to his manufacturing costs. In addition, he expanded during periods of economic decline, when most of his competitors cut back their investments. Carnegie thus enlarged his facilities inexpensively and could meet the increased demand for steel during years of economic growth. The Homestead Strike. In 1892, steelworkers at Carnegie's Homestead plant went on strike because they had received a wage cut. Carnegie was vacationing in Scotland at the time, and Frick refused to bargain with union leaders. Frick decided to reopen the plant by force, and he hired guards from the Pinkerton Detective Agency to protect nonunion workers from the strikers. Fighting broke out between the guards and the strikers, and several people were killed. The state militia restored order and reopened the plant. Most of the strikers quit the union and returned to work, and the strike ended in failure. Throughout the Homestead incident, Carnegie remained silent. Previously, he had claimed to support labor unions and oppose the use of force to end a strike, thus earning a reputation as a supporter of workers' rights. Many people criticized his silence during the Homestead strike, which they interpreted as approval of Frick's actions. Retirement. In 1901, Carnegie sold the Carnegie Steel Company for $480 million to J. P. Morgan, an American banker, and retired. "Mr. Carnegie," Morgan said, "I want to congratulate you on being the richest man in the world." Carnegie's fortune was estimated at $500 million. Morgan and other manufacturers later combined their companies to form the United States Steel Corporation. After Carnegie retired, he devoted his time largely to writing and to promoting worthy causes. In an essay called "Wealth," published in 1889, he outlined his ideas on using large fortunes for the improvement of society. Carnegie also wrote the books Triumphant Democracy (1886), The Empire of Business (1902), Problems of Today (1908), and Autobiography of Andrew Carnegie (1920). Carnegie's contributions to society. Carnegie believed that people could improve themselves through hard work. He also thought wealthy individuals should use their fortunes to aid society. He opposed charity but believed in helping others to help themselves, chiefly by providing educational opportunities. Carnegie donated about $350 million to various causes. With this money, he established over 2,500 public libraries throughout the world. He also financed the construction of Carnegie Hall, a famous concert hall in New York City. A group of technical schools founded by Carnegie now form part of Carnegie Mellon University in Pittsburgh. The Carnegie Institution of Washington (now also known as the Carnegie Institution for Science) was established to encourage research in the biological and physical sciences. The Carnegie Hero Fund Commission gives rewards for bravery. The Carnegie Foundation for the Advancement of Teaching provides pensions for college professors. The Carnegie © 2017 World Book, Inc. All rights reserved. WORLD BOOK and the GLOBE DEVICE are registered trademarks of World Book, Inc. Page 2 of 3 Endowment for International Peace works to end war. The Carnegie Corporation of New York provides funds to educational institutions and to organizations that conduct research on education and public affairs. Carnegie died on Aug. 11, 1919. Contributor: . Les Standiford, Ph.D., Director, Creative Writing Program, Florida International University. How to cite this article: To cite this article, World Book recommends the following format: MLA: Standiford, Les. "Carnegie, Andrew." World Book Student. World Book, 2017. Web. 9 Jan. 2017. APA: Standiford, L. (2017). Carnegie, Andrew. In World Book student. Retrieved from http://www.worldbookonline.com/student/article?id=ar095960 Harvard: Standiford, L 2017, 'Carnegie, Andrew' , World Book Student, World Book, Chicago, viewed 9 January 2017, <http://www.worldbookonline.com/student/article?id=ar095960>. © 2017 World Book, Inc. All rights reserved. WORLD BOOK and the GLOBE DEVICE are registered trademarks of World Book, Inc. Page 3 of 3.
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