Andrew Carnegie is an American businessman who was the richest man in the world at the turn of the 20th century. Carnegie owned an enormous fortune, estimated at $ 310 billion at the time of the businessman's death. The famous philanthropist and billionaire, in addition to the development of industry in America, also supported the development of culture and science in the world. What influence did Andrew Carnegie have on the development of American industry? How did the businessman start his career? See how Andrew Carnegie lived and achieved.
Andrew was born on November 25, 1835, in Dunfermline (Scotland). The boy's parents worked hard as weavers so that the four of them could live a good life - the couple had another son, Thomas. The Carnegie family lived modestly, living in a small studio apartment. Andrew's parents and their sons ate, slept, and spent time together on just a dozen square meters. When Andrew was 12, his parents decided to immigrate to the United States. They saw there a better chance of finding a good job and giving their children a better start in life. They settled in Allegheny City (Pittsburgh) in the American state of Pennsylvania. Andrew's mother started repairing shoes there, and his father worked in a cotton factory. When money was scarce, Mr. Carnegie also traded in bedding.
Andrew started working at the age of 13 to contribute to the family budget. First, he was a reel tutor in a weaving factory, where he worked for several hours a day. Back then, he was earning $ 2 a week with just one day off work. It was not easy for him. Young Andrew knew, however, that he must help his family live with dignity at all costs. The boy did not have time for joyful games with his peers. He didn't have a comfortable life and he didn't know what a carefree childhood was. However, his parents had taught him that hard work could keep him well. It was with this conviction that the boy began his adventure by earning money.
When Andrew was 15, he quit his job in a weaving factory. He became a telegram broker, already working for a slightly higher wage ($ 2.5 a week). The position of a telegraph messenger guaranteed the young Carnegie not only better money, but also other interesting benefits - such as free theater tickets on the day of the premiere. Andrew was very hardworking. He showed diligence in his work, he was also very diligent and thorough. In the telegraph office, this got the attention of the management team. Everyone was very impressed with how diligent young Andrew is. The teenager was offered a change of position to a telegraph operator.
In 1853, Andrew Carnegie became an officer of the Pennsylvania Railroad's telegraph. He continued to work diligently, trying to be as accurate as possible in his profession. He was soon promoted to secretary of one of the directors of the railroad, Thomas Scott. Thanks to this man, Andrew quickly received another promotion, this time to head of department. An interesting fact is that during the Civil War (1861-1865) it was Andrew Carnegie who helped in the organization of telegraph communication for the Union army, as well as planned transport and sent railroad rails for the army. Andrew then had no idea that he would soon be the richest in the entire United States. Much richer than Cornelius Vanderbilt or Jakob Fugger.
It was 1855. Andrew was already making enough money to try to invest it in something. Enterprising Carnegie decided to invest $ 500 in Adams Express. A few years later, Andrew received a stake in the Woodruff railway company. Carnegie slowly made his fortune while continuing to work for the railroad company. Soon after, Andrew began buying shares in steel companies, especially one - the Keystone Bridge Company, which built railroad bridges. In addition, he also bought shares of oil companies and wagon factories.
At the end of the American Civil War, Andrew Carnegie achieved such excellent results on the stock exchange of the companies he invested in that he quit the Pennsylvania Railroad. Carnegie felt this would be the best time to start his own business. As he decided, he did so.
Andrew Carnegie predicted that the demand for steel would increase in the coming years. He found this out on a trip to Europe in 1973, where he noticed a clear demand for an alloy of iron with carbon. Andrew had a nose for business, so he started investing in steel. Carnegie was very tough at negotiating and literally swept away competitors, expanding his business to such an extent that he began to dictate prices himself. He constantly invested in the development of his own company, constantly taking on smaller business partners. However, he never decided to sell the shares publicly. He wanted to control every aspect of his own business on his own, which he did with incredible detail.
Andrew Carnegie's steel mills, and especially the Homestead Works, purchased in 1883, began to be very popular, as the man had assumed. Thus, they also began to bring huge profits for Carnegie's company, counting in the millions of dollars. As a result, Andrew was able to buy most of the shares of Henry C. Frick's company, which imported coal to America. Carnegie and Frick soon became business partners. In 1892, Andrew merged his three steel plants into one, transforming it into the Carnegie Steel Company. Frick appointed the director of the concern, who was to be responsible for the current production from then on. What was Carnegie himself doing? He continued to invest money and devise new strategies for the expansion of the concern.
The businessman in America developed not only the industry but also transport. Carnegie's concern was built near the Great Lakes, where a whole fleet of merchant ships was built to transport raw materials and finished products. Had it not been for Carnegie's ability to select employees and his extraordinary investment sense, it would not have turned out so beautifully.
Even the economic crisis was not terrible for Andrew. As other companies collapsed, Carnegie continued to grow his business and was incredibly successful. In time, he even began to control the largest metallurgical enterprises in America. His concert Carnegie Steel Company turned into the largest producer of rails and cast iron in the United States. Carnegie then bought the Gomsted Metallurgical Plant (its largest competitor), becoming a monopolist in its industry. Thus, he also became the richest man in the world, who lived at the turn of the 19th and 20th centuries.
Andrew Carnegie also tried to pursue his career in other areas. He tried his hand at literature, writing articles about building a business for popular newspapers. He also regularly exchanged letters with ... presidents of the United States. As a wealthy man, he also began to invest in the development of culture and science, creating, inter alia, free libraries or donating money to a medical college in New York.
In 1892, a workers' strike broke out at the Carnegie Steel Company. They rebelled by drastically cutting weekly wages. Henry C. Frick refused to speak to the unions and refused to provide any comment on the matter. Instead, he brought in scabs, that is, people working at the time when others were on strike. He protected them, but despite this, there were serious riots, resulting in 9 deaths. About 100 strikers were seriously injured. Had it not been for the intervention of the militia, it could have resulted in an even greater tragedy.
What about Andrew Carnegie himself? He didn't say anything about it. He was on vacation in Scotland during the strike. He was heavily criticized by the trade unions for his silent attitude, losing in the eyes of the employees. He has assured them many times that he supports trade unions and defends their rights. It turned out, however, that in reality, these were just words thrown to the wind.
In 1901, Carnegie retired. At that time, with assets estimated at over USD 300 billion, he was considered the richest man in the world. Only later did John D. Rockefeller "bite" him. Like John D. Rockefeller, Andrew Carnegie spent a lot of money on a variety of social causes. It is estimated that he spent a total of over 350 million dollars for charity. For he used to say that "a man who dies rich dies disgraced."
Carnegie went out of his way to support his thesis. He financed, inter alia, around 3,000 public libraries, promoted English around the world, and opened the Carnegie Institute of Technology in Pittsburgh. On August 11, 1919, Andrew Carnegie died of bronchitis in New York City. However, he left behind many goods that are still used today by other people who dream of similar success.
Bibliography:
- Charles R. Morris: Giants. How Andrew Carnegie, John D. Rockefeller, Jay Gould, and J. P. Morgan Created the American Super Economy, Onepress Publishing House, Gliwice 2006
- David Nasaw: Andrew Carnegie, Penguin Books Publishing, 2006
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