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Andrew Carnegie
1838-1919
Andrew
Carnegie was born in Dunfermline, the medieval capital of Scotland,
in 1835. The town was a center of the linen industry, and Andrew's
father was a weaver, a profession the young Carnegie was expected
to follow. But the industrial revolution that would later make
Carnegie the richest man in the world, destroyed the weavers'
craft. When the steam-powered looms came to Dunfermline in 1847
hundreds of hand loom weavers became expendable. Andrew's mother
went to work to support the family, opening a small grocery
shop and mending shoes.
"I
began to learn what poverty meant," Andrew would later
write. "It was burnt into my heart then that my father
had to beg for work. And then and there came the resolve that
I would cure that when I got to be a man."
An
ambition for riches would mark Carnegie's path in life. However,
a belief in political egalitarianism was another ambition he
inherited from his family. Andrew's father, his grandfather
Tom Morrison and his uncle Tom Jr. were all Scottish radicals
who fought to do away with inherited privilege and to bring
about the rights of common workers.
But
Andrew's mother, fearing for the survival of her family, pushed
the family to leave the poverty of Scotland for the possibilities
in America. She borrowed 20 pounds she needed to pay the fare
for the Atlantic passage and in 1848 the Carnegies joined two
of Margaret's sisters in Pittsburgh, then a sooty city that
was the iron-manufacturing center of the country.
William
Carnegie secured work in a cotton factory and his son Andrew
took work in the same building as a bobbin boy for $1.20 a week.
Later, Carnegie worked as a messenger boy in the city's telegraph
office. He did each job to the best of his ability and seized
every opportunity to take on new responsibilities. For example,
he memorized Pittsburgh's street lay-out as well as the important
names and addresses of those he delivered to.
Carnegie
often was asked to deliver messages to the theater. He arranged
to make these deliveries at night--and stayed on to watch plays
by Shakespeare and other great playwrights. In what would be
a life-long pursuit of knowledge, Carnegie also took advantage
of a small library that a local benefactor made available to
working boys.
One
of the men Carnegie met at the telegraph office was Thomas A.
Scott, then beginning his impressive career at Pennsylvania
Railroad. Scott was taken by the young worker and referred to
him as "my boy Andy," hiring him as his private secretary
and personal telegrapher at $35 a month.
"I
couldn't imagine," Carnegie said many years later. "what
I could ever do with so much money." Ever eager to take
on new responsibilities, Carnegie worked his way up the ladder
in Pennsylvania Railroad and succeeded Scott as superintendent
of the Pittsburgh Division. At the outbreak of the Civil War,
Scott was hired to supervise military transportation for the
North and Carnegie worked as his right hand man.
The
Civil War fueled the iron industry, and by the time the war
was over, Carnegie saw the potential in the field and resigned
from Pennsylvania Railroad. It was one of many bold moves that
would typify Carnegie's life in industry and earn him his fortune.
He then turned his attention to the Keystone Bridge Company,
which worked to replace wooden bridges with stronger iron ones.
In three years he had an annual income of $50,000.
However,
Andrew expressed his uneasiness with the businessman's life.
In a letter to himself at age 33, he wrote: "To continue
much longer overwhelmed by business cares and with most of my
thoughts wholly upon the way to make more money in the shortest
time, must degrade me beyond hope of permanent recovery. I will
resign business at thirty-five, but during the ensuing two years
I wish to spend the afternoons in receiving instruction and
in reading systematically."
Carnegie
would continue making unparalleled amounts of money for the
next 30 years. Two years after he wrote that letter Carnegie
would embrace a new steel refining process being used by Englishman
Henry Bessemer to convert huge batches of iron into steel, which
was much more flexible than brittle iron. Carnegie threw his
own money into the process and even borrowed heavily to build
a new steel plant near Pittsburgh. Carnegie was ruthless in
keeping down costs and managed by the motto "watch costs
and the profits take care of themselves."
"I
think Carnegie's genius was first of all, an ability to foresee
how things were going to change," says historian John Ingram.
"Once he saw that something was of potential benefit to
him, he was willing to invest enormously in it."
Carnegie
was unusual among the industrial captains of his day because
he preached for the rights of laborers to unionize and to protect
their jobs. However, Carnegie's actions did not always match
his rhetoric. Carnegie's steel workers were often pushed to
long hours and low wages. In the Homestead Strike of 1892, Carnegie
threw his support behind plant manager Henry Frick, who locked
out workers and hired Pinkerton thugs to intimidate strikers.
Many were killed in the conflict, and it was an episode that
would forever hurt Carnegie's reputation and haunt the man.
Still,
Carnegie's steel juggernaut was unstoppable, and by 1900 Carnegie
Steel produced more of the metal than all of Great Britain.
That was also the year that financier J. P. Morgan mounted a
major challenge to Carnegie's steel empire. While Carnegie believed
he could beat Morgan in a battle lasting five, 10 or 15 years,
the fight did not appeal to the 64-year old man eager to spend
more time with his wife Louise, whom he had married in 1886,
and their daughter, Margaret.
Carnegie
wrote the asking price for his steel business on a piece of
paper and had one of his managers deliver the offer to Morgan.
Morgan accepted without hesitation, buying the company for $480
million. "Congratulations, Mr. Carnegie," Morgan said
to Carnegie when they finalized the deal. "you are now
the richest man in the world."
Fond
of saying that "the man who dies rich dies disgraced,"
Carnegie then turned his attention to giving away his fortune.
He abhorred charity, and instead put his money to use helping
others help themselves. That was the reason he spent much of
his collected fortune on establishing over 2,500 public libraries
as well as supporting institutions of higher learning. By the
time Carnegie's life was over, he gave away 350 million dollars.
Carnegie
also was one of the first to call for a "league of nations"
and he built a "a palace of peace" that would later
evolve into the World Court. His hopes for a civilized world
of peace were destroyed, though, with the onset of World War
I in 1914. Louise said that with these hostilities her husband's
"heart was broken." Carnegie lived for another five
years, but the last entry in his autobiography was the day World
War I began.
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