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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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