The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-08-12

I$sSSs 81 ~ s7E ~ # S.l |
ANDREW CARNEGIE
| steel King and Phnanthropist.
velopment of the iron and steel busi-
ress and in 1864 he bought an interest
| in the Iron City Forge company.
Shortly afterwards he Joined Thomas
N. Miller in the organization OF rival
concern. The experiment was not a
SUCCESS and Carnegie set about form
ing his first merger, the two concerns
being joined under the name of the
Union Iron Mills company with a cap
lital OF 100000
MARVELLOUS ACTIVITY
He then formed the Keystone
Bridge company with J. Edgar Thorn
son as president. Colonel Scott was also
taken into the concern. The company
was so prosperous from the start that
Carnegie resigned as superintendent
OF the Pennsylvania lines. In 1868.
after a trip to England during which
he noated 5000. 900 of Pennsylvania
Railroad bonds, which netted him a
commission of $:25,0 900. he decided to
Introduce the Bessemer process in his
mills and soon atterward organized the
Arm OF Carnegie, McCandless and
ICON pany. In Pittsburg. Into this con-
cern he put all his available cash.
The first step toward Carnesie's
mystery OF the steal industry was the
erection of the Edgar Thomson Steel
Works. Through the concerns con-
nection with the Pennsylvania railroad
competition was ruthlessly related
n III m at
DDS of Carnegie and his partners came
in for much criticism then and In
later years, but the iron master had
not then developed his admiration for
: democracy in business and expressed
. the belief that Capitalization OF con-
! troll was beneficial for all.
2 The division Of labor among the
partners in the firm was described
! thus:
e "shinn bossed the show. McCandless
lent its dignity and standing, Phipps
: took in the pennies at the gate and
kept the payroll down. Tom Carne
gle kept everybody In good hume
and Andy looked after the advertis-
ing and drove the band wagon"
The partners soon began to drop
out one by one. Some were forced
out; others died and by 1881 Carnegie
> owned fifty per cent of the business.
In 1886 Carnegie controlled seven
steel and iron companies and his for
tune was estimated at $15.0o0,000. In
1899 the profits OF these companies
were estimated at sci 100000.
Following the Homestead strike in
1892 Carnegie had his famous break
, with his former partner, Henry c.
: Frick, because Of Carnegie's having
> remained in Scotland while the strike
was in progress. leaving. Frick to bear
r the brunt of the battle
Gets $3.50 zoo, 900.
l In 1901 the Carnegie Steel Company
!, was absorbed by the United States
' Steel Corporation. the price paid be-
:, ing $460.o0o.oo0. Carnegie's share
= was approximately $3.50. 900. 900. Be.
fore the sale Carnegie had been
: planning a master stroke for driving
: his rivals entirely out OF business. This
included a war on the Rockefeller in
terests. the Pennsylvania railroad.
the National Tube company and the
American Steel and Wire company.
The first steps In this warfare were
to be the construction OF railroad
from Pittsburg to the ocean. the build
ing of s12.00o.0o0 steel plant at
Cleveland. the establishment Of seven
, great ore carrying steamships and the
formation Of an International alliance
for the elimination of all competition
with Carnegie company.
A few years ago Carnegie made the
boast that he had created forty-two
Charles NJ schwab. William Ellis
, Corey and A. c. Dinkey. Some per-
J cons claimed that Carnegie's rapid
I rise to wealth was due to the energy
OF his young partners, but many of
the partners themselves have testified
to Carnegie's wonderful vision and
aggressiveness which they declared
, to have been the chief factor in the
success OF all OF his companies.
None of Carnegic's fortune was de-
rived from stock exchange transac-
tons He mentioned this fact at a
! dinner to a number OF veteran tele.
graphers who were his guests.
:. Gentlemen" he said. with the
famous Scotch burr. which never left
him. lit is a good day for this coun-
try when the stock gamblers come to
grief and ! wish could invent a sys-
tenn whereby both parties to stock
, gambling would suffer. i am speak
ing as a business r an and one who
, never made dollar by gam bling in
stocks and who would as soon make
it that way as by playing cards, bridge
whist and SO on"
He was a strong advocate Of pro-
hibition and urged fetal abstenince on
his employees. In the distribution of
has vast wealth. Carnegie regarded
Libraries as the most useful gifts
that could be conferred upon the peo-
pie free libraries maintained by the
people" he once declared. ARE cradles
OF, democracy and their spread can
never fail to extend and strengthen
the democratic idea. the equality OF
the citizen. the royalty OF man. They
',haticAlIy (; uits OF the true
| American ideal"
His gifts OF libraries were always
based IN the idea of co cooperation by
1.-THE community in the maintenance Of
1.-THE institution.
Il give he said. usually because
I want those places or institutions to
4 help themselves love to help those
who help Themselves"
Music was one OF his hobbies and
ehurchea