EPICWORLD DINNER TOPICS

NOTE TO READERS: Thank you for all your positive comments. Unfortunately, many of your comments have gone to the image page and are not displayed in connection to this post. To make sure you are part of the discussion, I have removed the time limit on the  comment box  and temporarily removed the picture of Carnegie so all the comments are displayed correctly. Please do not click images in any of the posts to leave comments, and be aware that for your comments to be displayed, they must be entered in the “leave a comment”  box at the conclusion of the post. I hope you continue to enjoy this site. ~C.A. Davidson

Dinner Topics for Tuesday

Today capitalism and producers of wealth are much maligned by people and groups who are afflicted by what can only be described as envy. Andrew Carnegie was one of those captains of industry to which we owe a great deal. Carnegie Steel transformed our cities and helped build America into a thriving economy. Like many of the very wealthy, he made mistakes in his career, but also like  many of the very wealthy, Carnegie gave away a large portion of his wealth which resulted in much betterment of our society.  Young adults need to learn about the men who built America.  Be sure to view the following video of a young man who has done just that, and shares what he learned in an award-winning speech. ~C.A. Davidson

Twelfth grader David Henry recently delivered a speech at Regents Academy’s Open House on the topic of Andrew Carnegie and free enterprise. This was an award-winning speech in the Texas Farm Bureau Free Enterprise speech.

See video here

From Wikipedia

Andrew Carnegie (  /kɑrˈneɪɡi/ kar-NAY-gee, but commonly /ˈkɑrnɨɡi/ KAR-nə-gee or /kɑrˈnɛɡi/ kar-NEG-ee;^[1] November 25, 1835 – August 11, 1919) was a Scottish-American industrialist who led the enormous expansion of the American steel industry in the late 19th century. He was also one of the most important philanthropists of his era.

Carnegie was born in Dunfermline, Scotland, and emigrated to the United States with his parents in 1848. His first job in the United States was as a factory worker in a bobbin factory. Later on he became a bill logger for the owner of the company. Soon after he became a messenger boy. Eventually he progressed up the ranks of a telegraph company. He built Pittsburgh’s Carnegie Steel Company, which was later merged with Elbert H. Gary‘s Federal Steel Company and several smaller companies to create U.S. Steel. With the fortune he made from business among others he built Carnegie Hall, later he turned to philanthropy and interests in education, founding the Carnegie Corporation of New York, Carnegie Endowment for International Peace, Carnegie Institution of Washington, Carnegie Mellon University and the Carnegie Museums of Pittsburgh.

Carnegie gave most of his money to establish many libraries, schools, and universities in the United States, the United Kingdom, Canada and other countries, as well as a pension fund for former employees. He is often regarded as the second-richest man in history after John D. Rockefeller. Carnegie started as a telegrapher and by the 1860s had investments in railroads, railroad sleeping cars, bridges and oil derricks. He built further wealth as a bond salesman raising money for American enterprise in Europe. Carnegie once gave $25,000 to Speaker of the House David B. Henderson to erect a library on the campus of Upper Iowa University in his name.^[2]

He earned most of his fortune in the steel industry. In the 1870s, he founded the Carnegie Steel Company, a step which cemented his name as one of the “Captains of Industry”. By the 1890s, the company was the largest and most profitable industrial enterprise in the world. Carnegie sold it in 1901 for $480 million to J.P. Morgan, who created U.S. Steel. Carnegie devoted the remainder of his life to large-scale philanthropy, with special emphasis on local libraries, world peace, education and scientific research. His life has often been referred to as a true “rags to riches” story.

Railroads

In 1850, Carnegie became a telegraph messenger boy in the Pittsburgh Office of the Ohio Telegraph Company, at $2.50 per week,^[6] following the recommendation of his uncle. His new job gave him many benefits including free admission to the local theater. This made him appreciate Shakespeare’s work. He was a very hard worker and would memorize all of the locations of Pittsburgh’s businesses and the faces of important men. He made many connections this way. He also paid close attention to his work quickly learning to distinguish the differing sounds the incoming telegraph signals produced and learned to translate signals by ear, without having to write them down^{[citation needed]} and within a year was promoted as an operator. Carnegie’s education and passion for reading was given a great boost by Colonel James Anderson, who opened his personal library of 400 volumes to working boys each Saturday night. Carnegie was a consistent borrower and a “self-made man” in both his economic development and his intellectual and cultural development. His capacity, willingness for hard work, his perseverance, and his alertness soon brought forth opportunities.

Starting in 1853, Thomas A. Scott of the Pennsylvania Railroad Company employed Carnegie as a secretary/telegraph operator at a salary of $4.00 per week. At age 18, the youth began a rapid advancement through the company, becoming the superintendent of the Pittsburgh Division. His employment by the Pennsylvania Railroad Company would be vital to his later success. 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.^[7]

Scott also helped him with his first investments. Many of these were part of the corruption indulged in by Scott and the Pennsylvania’s president, J. Edgar Thomson, which consisted of inside trading in companies that the railroad did business with, or payoffs made by contracting parties “as part of a quid pro quo“, as biographer David Nasaw writes.^[8] In 1855, Scott made it possible for Carnegie to invest $500 in the Adams Express, which contracted with the Pennsylvania to carry its messengers. The money was secured by the act of his mother placing a $500 mortgage on the family’s $700 home, but the opportunity was only available because of Carnegie’s close relationship with Scott.^[8][9] A few years later, he received a few shares in T.T. Woodruff’s sleeping car company, as a reward for holding shares that Woodruff had given to Scott and Thomson, as a payoff. Reinvesting his returns in such inside investments in railroad-related industries: (iron, bridges, and rails), Carnegie slowly accumulated capital, the basis for his later success. Throughout his later career, he made use of his close connection 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.

Industrialist

1885–1900: Empire of Steel

Carnegie’s mother had not wanted him to get married.^[11] After she died in 1886, Carnegie married Louise Whitfield,^[11] who was more than 20 years his junior.^[12] In 1897,^[13] the couple had their only child, a daughter, whom they named after Carnegie’s mother, Margaret.^[14]

Carnegie made his fortune in the steel industry, controlling the most extensive integrated iron and steel operations ever owned by an individual in the United States. One of his two great innovations was in the cheap and efficient mass production of steel by adopting and adapting the Bessemer process for steel making. Sir Henry Bessemer had invented the furnace which allowed the high carbon content of pig iron to be burnt away in a controlled and rapid way. The steel price dropped as a direct result, and Bessemer steel was rapidly adopted for railway lines and girders for buildings and bridges. The second was in his vertical integration of all suppliers of raw materials. In the late 1880s, Carnegie Steel was the largest manufacturer of pig iron, steel rails, and coke in the world, with a capacity to produce approximately 2,000 tons of pig metal per day. In 1888, Carnegie bought the rival Homestead Steel Works, which included an extensive plant served by tributary coal and iron fields, a 425-mile (685 km) long railway, and a line of lake steamships. Carnegie combined his assets and those of his associates in 1892 with the launching of the Carnegie Steel Company.

By 1889, the U.S. output of steel exceeded that of the UK, and Carnegie owned a large part of it. Carnegie’s empire grew to include the J. Edgar Thomson Steel Works, (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 Scotia ore mines. Carnegie, through Keystone, supplied the steel for and owned shares in the landmark Eads Bridge project across the Mississippi River at St. Louis, Missouri (completed 1874). This project was an important proof-of-concept for steel technology, which marked the opening of a new steel market.

In 1886, Carnegie wrote his most radical work to date, entitled Triumphant Democracy. Liberal in its use of statistics to make its arguments, the book argued his view that the American republican system of government was superior to the British monarchical system. It gave a highly favorable and idealized view of American progress and criticized the British royal family. The cover depicted an upended royal crown and a broken scepter. The book created considerable controversy in the UK. The book made many Americans appreciate their country’s economic progress and sold over 40,000 copies, mostly in the U.S.

Controversies

1889: Johnstown Flood

Main article: Johnstown Flood

Carnegie was one of more than 50 members of the South Fork Fishing and Hunting Club, which has been blamed for the Johnstown Flood that killed 2,209 people in 1889.^[35]

At the suggestion of his friend Benjamin Ruff, Carnegie’s partner Henry Clay Frick had formed the exclusive South Fork Fishing and Hunting Club high above Johnstown, Pennsylvania.

Prior to the flood, speculators had purchased the abandoned reservoir, made less than well-engineered repairs to the old dam, raised the lake level, built cottages and a clubhouse, and created the South Fork Fishing and Hunting Club. Less than 20 miles downstream from the dam sat the city of Johnstown.

The dam was 72 feet (22 m) high and 931 feet (284 m) long. Between 1881 when the club was opened, and 1889, the dam frequently sprang leaks and was patched, mostly with mud and straw. Additionally, a previous owner removed and sold for scrap the 3 cast iron discharge pipes that previously allowed a controlled release of water. There had been some speculation as to the dam’s integrity, and concerns had been raised by the head of the Cambria Iron Works downstream in Johnstown. Such repair work, a reduction in height, and unusually high snowmelt and heavy spring rains combined to cause the dam to give way on May 31, 1889 resulting in twenty million tons of water to sweep down the valley causing the Johnstown Flood

Although Cambria Iron and Steel’s facilities were heavily damaged by the flood, they returned to full production within a year.. After the flood, Carnegie built Johnstown a new library to replace the one built by Cambria’s chief legal counsel Cyrus Elder, which was destroyed in the flood. The Carnegie-donated library is now owned by the Johnstown Area Heritage Association, and houses the Flood Museum.

1892: Homestead Strike

The Homestead Strike was a bloody labor confrontation lasting 143 days in 1892, one of the most serious in U.S. history. The conflict was centered on Carnegie Steel’s main plant in Homestead, Pennsylvania, and grew out of a dispute between the National Amalgamated Association of Iron and Steel Workers of the United States and the Carnegie Steel Company.

On July 6, the arrival of a force of 300 Pinkerton agents from New York City and Chicago resulted in a fight in which 10 men—seven strikers and three Pinkertons—were killed and hundreds were injured. Pennsylvania Governor Robert Pattison ordered two brigades of state militia to the strike site. Then, allegedly in response to the fight between the striking workers and the Pinkertons, anarchist Alexander Berkman shot at Frick in an attempted assassination, wounding Frick. While not directly connected to the strike, Berkman was tied in for the assassination attempt. According to Berkman, “…with the elimination of Frick, responsibility for Homestead conditions would rest with Carnegie.”^[37][38] Afterwards, the company successfully resumed operations with non-union immigrant employees in place of the Homestead plant workers, and Carnegie returned to the United States. However, Carnegie’s reputation was permanently damaged by the Homestead events.

Philosophy

Andrew Carnegie Dictum

In his final days, Carnegie suffered from bronchial pneumonia. Before his death on August 11, 1919, Carnegie had donated $350,695,654 for various causes. The “Andrew Carnegie Dictum” illustrates Carnegie’s generous nature:

• To spend the first third of one’s life getting all the education one can.
• To spend the next third making all the money one can.
• To spend the last third giving it all away for worthwhile causes.

Carnegie was involved in philanthropic causes, but he kept himself away from religious circles. He wanted to be identified by the world as a “positivist“. He was highly influenced in public life by John Bright.

Continued