Andrew Carnegie: The Charitable Captain of Industry

Andrew Carnegie: The Charitable Captain of Industry
During the time period after the Civil War and nearing the twentieth century, America’s economy was in prime position to be molded – all America needed was someone to come along to mold it. Businesspersons like Cornelius Vanderbilt and entrepreneurs like John D. Rockefeller were prime examples of exactly whom America needed to take charge of the economy at this time; however, there was one man who was not only a self-made steel tycoon and one of the wealthiest 19th century U.S. businessmen, but a humanitarian as well. This charitable captain of industry was none other than Mr. Andrew Carnegie – who transformed himself from a young Scottish immigrant to a corporate leader and philanthropist whose name still echoes prominently throughout American society today. Although plagued by devastating events in his past, Andrew Carnegie was a captain of industry because of his smart investments and, ultimately, a philanthropist because of his selfless acts. Before owning the world’s largest steel corporation, Andrew Carnegie was a mere messenger boy for a telegraph office. It was at the telegraph office where Thomas A. Scott took a liking to Carnegie. After many years of working closely under Scott and moving up the ranks, Carnegie became superintendent of the Pennsylvania Railroad and Scott’s right hand man. Scott later gave Carnegie the task of connecting the East to the West by way of a bridge that crossed the Mississippi. On a hunt for a material that could withstand the rapid waters, Carnegie came across steel – a radically new substance that was more flexible than iron so it could handle the harsh tidewaters of the Mississippi. By the time the bridge was complete, Carnegie knew he had stumbled upon something. This new material could entirely revolutionize the building process. Carnegie may not have known the importance of what he discovered, but steel was about to become the center of Andrew Carnegie’s whole world and propelled him to the status of captain of industry. While working under Scott at the railroad, Carnegie was simultaneously investing his money in other businesses, especially in the oil industry. With all of the revenue that his oil investments brought him, Carnegie decided to leave the railroad industry in 1865 and focus on his other business interests – like steel. By the next decade, most of Carnegie's time, interest, and money were dedicated to the steel industry. His business, which became known as the Carnegie Steel Company, revolutionized steel production in the United States. Carnegie knew steel had a long future in America and began to modernize the building process like never before. Carnegie established plants around the country, using technology and methods that made manufacturing steel easier, faster and more productive. This “work smarter not harder” ideal was called vertical integration. This “vertical integration” was the method of improving manufacturing efficiency by making products more readily available and reliable. Focusing on steel production, the Captain utilized this vertical integration process to completely revamp America; however, some felt that the company's success came at others expense. When the Carnegie Steel Company was working at full capacity, Carnegie was overwhelmed, and he knew he needed help. Carnegie scoured the nation for a partner and finally found Henry Frick. Although merciless, Frick was the backbone that Carnegie needed, unfortunately, this decision brought only trouble and controversy. In 1892, while Carnegie was on leave in his hometown of Dunfermline, Scotland, the chairman of Carnegie Steel, Frick, was left in charge; however, neither Frick nor Carnegie could have anticipated the coming event. After the company tried to lower wages at a Carnegie Steel plant in Homestead, Pennsylvania, the employees protested. They refused to work, starting what the Homestead Strike of 1892. To put down the revolt, Frick hired the Pinkerton Detective Agency’s private army. The conflict then turned violent between the strikers and the army. Even though Carnegie was away at the time of strike, many still held him accountable for what happened. Though his past was not perfect, Andrew Carnegie was not only a good businessman, but also a good human. He was a captain of industry not only because of the profit he earned, but because of what he did with his money – he improved America in many other ways except simply the improved production and use of steel in Americans everyday lives. Andrew Carnegie donated millions of dollars to the New York Public Library, he established the Carnegie Institute of Technology in Pittsburgh (Carnegie-Mellon University now), he created the Carnegie Foundation for the Advancement of Teaching, he built Carnegie Hall, and he formed the Carnegie Endowment for International Peace. Andrew Carnegie is without a doubt a great individual and a great Captain of Industry.