Andrew Carnegie

Andrew Carnegie Andrew Carnegie was a Scottish-born industrialist, businessman, and a major philanthropist. He was an immigrant as a child with his parents. He built Pittsburgh's Carnegie Steel Company, which was later merged with Elbert H. Gary's Federal Steel Company and several smaller companies to create U.S. Steel. With the fortune he made from business, he turned to philanthropy and interests in education, founding the Carnegie Corporation of New York, Carnegie Endowment for International Peace, and Carnegie Mellon University in Pittsburgh. While Carnegie paid his employees the low wages typical of the time, he later gave away most of his money to fund the establishment of many libraries, schools, and universities in America, the United Kingdom and other countries, as well as a pension fund for former employees. He is often regarded as the second richest man in history. Carnegie started as a telegrapher and by the 1860s had investments in railroads, railroad sleeping cars, bridges and oil derricks. He built further wealth as a bond salesman raising money for American enterprise in Europe. Steel was where he made his fortune. In the 1870s, he founded the Carnegie Steel Company, a step which cemented his name as one of the “Captains of Industry”. By the 1890s, the company was the largest and most profitable industrial enterprise in the world. Carnegie sold it to J.P. Morgan in 1901, who created US Steel. Carnegie devoted the remainder of his life to large-scale philanthropy, with special emphasis on local libraries, world peace, and education and scientific research. Carnegie made his fortune in the steel industry, controlling the most extensive integrated iron and steel operations ever owned by an individual in the United States. One of his two great innovations was in the cheap and efficient mass production of steel rails for railroad lines. The second was in his vertical integration of all suppliers of raw materials. In the late 1880s, Carnegie Steel was the largest manufacturer of pig iron, steel rails, and coke in the world, with a capacity to produce approximately 2,000 tons of pig metal per day. In 1888, Carnegie bought the rival Homestead Steel Works, which included an extensive plant served by tributary coal and iron fields, a 425-mile (685 km) long railway, and a line of lake steamships. Carnegie combined his assets and those of his associates in 1892 with the launching of the Carnegie Steel Company. By 1889, the U.S. output of steel exceeded that of the UK, and Carnegie owned a large part of it. Carnegie's empire grew to include the J. Edgar Thomson Steel Works, (named for John Edgar Thomson, Carnegie's former boss and president of the Pennsylvania Railroad), Pittsburgh Bessemer Steel Works, the Lucy Furnaces, the Union Iron Mills, the Union Mill (Wilson, Walker & County), the Keystone Bridge Works, the Hartman Steel Works, the Frick Coke Company, and the Scotia ore mines. Carnegie, through Keystone, supplied the steel for and owned shares in the landmark Eads Bridge project across the Mississippi River at St. Louis, Missouri (completed 1874). This project was an important proof-of-concept for steel technology, which marked the opening of a new steel market. In 1901, Carnegie was 66 years old and considering retirement. He reformed his enterprises into conventional joint stock corporations as preparation to this end. John Pierpont Morgan was a banker and perhaps America's most important financial deal maker. He had observed how efficiently Carnegie produced profit. He envisioned an integrated steel industry that would cut costs, lower prices to consumers and raise wages to workers. To this end, he needed to buy out Carnegie and several other major producers and integrate them into one company, thereby eliminating duplication and waste. He concluded negotiations on 2 March 1901, and formed the United States Steel Corporation. It was the first corporation in the world with a market capitalization in excess of $1 billion. Carnegie spent his last years as a philanthropist. From 1901 forward, public attention was turned from the shrewd business acumen which had enabled Carnegie to accumulate such a fortune, to the public-spirited way in which he devoted himself to utilizing it on philanthropic projects. He had written about his views on social subjects and the responsibilities of great wealth in Triumphant Democracy (1886) and Gospel of Wealth (1889). Among his many philanthropic efforts, the establishment of public libraries throughout the United States, the United Kingdom, and other English-speaking countries was especially prominent. Carnegie libraries, as they were commonly called, were built in many places. His method was to build and equip, but only on condition that the local authority matched that by providing a site and operating maintenance. To secure local interest, in 1885, he gave $500,000 to Pittsburgh for a public library, and in 1886, he gave $250,000 to Allegheny City for a music hall and library; and $250,000 to Edinburgh, Scotland, for a free library. In total Carnegie funded some 3,000 libraries, located in 47 states. Carnegie also built libraries in Canada and overseas in the United Kingdom including the Republic of Ireland, Australia, New Zealand, the West Indies, and Fiji. He also donated £50,000 to help set up the University of Birmingham in 1899. The Broome County Public Library in New York opened in October 1904. Originally called the Binghamton Public Library, it was created with a gift of $75,000 from Andrew Carnegie. The building was designed to serve as both a public library and a community center. He gave $2 million in 1901 to start the Carnegie Institute of Technology (CIT) at Pittsburgh, and the same amount in 1902 to found the Carnegie Institution at Washington, D.C. He later contributed more to these and other schools. CIT is now part of Carnegie Mellon University. Carnegie served on the Board of Cornell University. His interest in music led him to fund construction of 7,000 church organs. He built and owned Carnegie Hall in New York City. Gustavus Swift Gustavus Swift founded a meat-packing empire in the Midwest during the late 19th century, over which he presided until his death. He is credited with the development of the first practical ice-cooled railroad car which allowed his company to ship dressed meats to all parts of the country and even abroad, which ushered in the "era of cheap beef." Swift pioneered the use of animal by-products for the manufacture of soap, glue, fertilizer, various types of sundries, and even medical products. Swift donated large sums of money to such institutions as the University of Chicago, the Methodist Episcopal Church, and the Young Men's Christian Association (YMCA). He established Northwestern University's "School of Oratory" in memory of his daughter, Annie May Swift, who died while attending the school. When he died in 1903, his company was valued at between US$125 million and $135 million, and had a workforce that was more than 21,000 strong. "The House of Swift" slaughtered as many as two million cattle, four million hogs, and two million sheep a year. Three years after his death, the value of the company's capital stock topped $250 million. He and his family are interred in a mausoleum in Mount Hope Cemetery in Chicago, Illinois. Following the end of the American Civil War, Chicago emerged as a major railway center, making it an ideal point for the distribution of livestock raised on the Great Plains to Eastern markets. Getting the animals to market required herds to be driven distances of up to twelve hundred miles to railheads in Kansas City, MO, whereupon they were loaded into specialized stock cars and transported live (on the hoof) to regional processing centers. Driving cattle across the plains also led to tremendous weight loss, and a number of animals were typically lost along the way. Upon arrival at the local processing facility, livestock were either slaughtered by wholesalers and delivered fresh to nearby butcher shops for retail sale, smoked, or packed for shipment in barrels of salt. Certain costly inefficiencies were inherent in the process of transporting live animals by rail, particularly due to the fact that some sixty percent of the animal's mass is composed of inedible matter. Many animals weakened by the long drive died in transit, further increasing the per-unit shipping cost. Swift's ultimate solution to these problems was to devise a method to ship dressed meats from his packing plant in Chicago to the East. In 1878, Swift hired an engineer to design a refrigerated boxcar that was well- insulated, and positioned the ice in a compartment at the top of the car, allowing the chilled air to flow naturally downward. The design proved to be a practical solution to providing temperature-controlled carriage of dressed meats, and allowed Swift & Company to ship their products all over the United States, and even internationally, and in doing so radically altered the meat business. Swift's attempts to sell this design to the major railroads were unanimously rebuffed as the companies feared that they would jeopardize their considerable investments in stock cars and animal pens if refrigerated meat transport gained wide acceptance. In response, Swift financed the initial production run on his own, then — when the American roads refused his business — he contracted with the GTR (a railroad that derived little income from transporting live cattle). In 1880 the Swift Refrigerator Line (SRL) was created. Within a year the Line’s roster had risen to nearly 200 units, and Swift was transporting an average of 3,000 carcasses a week to Boston.

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