Carnegie and the steel industry vertical

He was also one of the most important philanthropists of his era.

Carnegie and the steel industry vertical

When Carnegie was thirteen, his father had fallen on very hard times as a handloom weaver; making matters worse, the country was in starvation. His mother helped support the family by assisting her brother a cobblerand by selling potted meats at her "sweetie shop", leaving her as the primary breadwinner.

Allegheny was rapidly populating in the s, growing from around 10, to 21, residents. The "Made in Allegheny" label used on these and other diversified products was becoming more and more popular.

Carnegie and the steel industry vertical

Dealers were not interested in selling his product, and he himself struggled to sell it on his own. Soon after this Mr. John Hay, a fellow-Scotch manufacturer of bobbins in Allegheny City, needed a boy, and asked whether I would not go into his service.

I went, and received two dollars per week; but at first the work was even more irksome than the factory. I had to run a small steam-engine and to fire the boiler in the cellar of the bobbin factory.

It was too much for me.

I found myself night after night, sitting up in bed trying the steam gauges, fearing at one time that the steam was too low and that the workers above would complain that they had not power enough, and at another time that the steam was too high and that the boiler might burst.

He made many connections this way. He also paid close attention to his work, and quickly learned to distinguish the differing sounds the incoming telegraph signals produced.

He developed the ability to translate signals by ear, without using the paper slip, [21] and within a year was promoted to operator.

Carnegie and the steel industry vertical

He was so grateful to Colonel Anderson for the use of his library that he "resolved, if ever wealth came to me, [to see to it] that other poor boys might receive opportunities similar to those for which we were indebted to the noble man". Starting inThomas A.

Carnegie accepted this job with the railroad as he saw more prospects for career growth and experience with the railroad than with the telegraph company.

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Carnegie then hired his sixteen-year-old brother, Tom, to be his personal secretary and telegraph operator. Not only did Carnegie hire his brother, but he also hired his cousin, Maria Hogan, who became the first female telegraph operator in the country.

The railroads were the first big businesses in America, and the Pennsylvania was one of the largest of them all. Carnegie learned much about management and cost control during these years, and from Scott in particular. Reinvesting his returns in such inside investments in railroad-related industries: Throughout his later career, he made use of his close connections to Thomson and Scott, as he established businesses that supplied rails and bridges to the railroad, offering the two men a stake in his enterprises.

The investment proved a great success and a source of profit for Woodruff and Carnegie. Carnegie helped open the rail lines into Washington D. Following the defeat of Union forces at Bull Runhe personally supervised the transportation of the defeated forces.

Under his organization, the telegraph service rendered efficient service to the Union cause and significantly assisted in the eventual victory. Carnegie later joked that he was "the first casualty of the war" when he gained a scar on his cheek from freeing a trapped telegraph wire.

Defeat of the Confederacy required vast supplies of munitionsas well as railroads and telegraph lines to deliver the goods. The war demonstrated how integral the industries were to American success.

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The demand for iron products, such as armor for gunboats, cannons, and shells, as well as a hundred other industrial products, made Pittsburgh a center of wartime production. Carnegie worked with others in establishing a steel rolling milland steel production and control of industry became the source of his fortune.

Carnegie had some investments in the iron industry before the war. After the war, Carnegie left the railroads to devote all his energies to the ironworks trade.

Carnegie worked to develop several iron works, eventually forming the Keystone Bridge Works and the Union Ironworks, in Pittsburgh.Carnegie's empire grew to include the J. Edgar Thomson Steel Works in Braddock, (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 .

Carnegie and the Steel Industry: Vertical Integration Essay When Carnegie started his steel company he started with a very little mount of money so in order to pay less to manufacture the steel and increase his profits, Carnegie bought out companies that provided raw materials like iron, which is one of the main components of steel.

Carnegie Steel Company was a steel producing company primarily created by Andrew Carnegie and several close associates, to manage businesses at steel mills in the Pittsburgh, Pennsylvania area in the late 19th century. The company formed in and was subsequently sold in in one of the largest ever business transactions of the early 20th century, to become the major component of the United .

Carnegie’s business enterprises present a classic illustration of vertical integration. He sought to become immune from competition by dominating all aspects of the production process. He was not content to own only the steel mills, but worked to control iron ore barges, coal and iron fields and the railroads (one area where he was not especially successful).

Carnegie and the Steel Industry: Vertical Integration Essay When Carnegie started his steel company he started with a very little mount of money so in order to pay less to manufacture the steel and increase his profits, Carnegie bought out companies that provided raw materials like iron, which is one of the main components of steel.

In , J.P. Morgan offered to buy all of Carnegie’s steel holdings for the price of $ million. Carnegie acceptance made him the world’s richest man. Morgan went on to form U.S. Steel, a corporation with a capitalization in excess of $ billion.

Carnegie Steel Company - Wikipedia