Carnegie Steel Company
{{Short description|19th-century steel production company in Pennsylvania, US}}
{{Use mdy dates|date=August 2016}}
{{Infobox company
| name = Carnegie Steel Company
| image =
| type = Partnership
| slogan =
| foundation = {{start date and age|1892|07|01}}
| defunct = {{start date and age|1901|03|02}}
| location = Pittsburgh, Pennsylvania
| founders = Andrew Carnegie
Henry Clay Frick
George Lauder
Henry Phipps Jr.
| key_people =
| num_employees =
| industry = Steel, coke, railroad
| products = {{hlist|Steel|coal|coke|flat-rolled and tubular steel products|railroad rails}}
| services = Manufacturing
| revenue =
| net_income =
| successor = U.S. Steel
| assets =
| equity =
| homepage =
}}
File:Carnegie-Illinois Steel furnaces.jpg
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 was formed in 1892, and was subsequently sold in 1901 in one of the largest business transactions of the early 20th century, to become a major component of U.S. Steel. The sale made Carnegie one of the richest Americans in history.
Creation
Carnegie began the construction of his first steel mill, the Edgar Thomson Steel Works, in 1872 at Braddock, Pennsylvania.Nasaw, D., 2006, p. 144 The Thomson Steel Works began producing rails in 1874.Nasaw, D., 2006, p. 161 By a combination of low wages, efficient technology, infrastructure investment and an efficient organization, the mill produced cheap steel, which sold for a large profit in the growing markets of industrial development. Carnegie alone estimated that 40% was returned on the investment, i.e., a profit of $40,000 from a $100,000 investment in the mill.Nasaw, D., 2006, p. 170
The profits made by the Edgar Thomson Steel Works were substantial enough to let Carnegie and his partners, including Henry Clay Frick, his cousin George Lauder, and Henry Phipps Jr., buy other nearby steel mills. These included the Homestead Steel Works, which Carnegie acquired in 1883.{{cite web | url = http://www.riversofsteel.com/routestoroots/3RsWindows/homestead_works.html | title = Rivers of Steel – Homestead Works | access-date = 2016-07-25 | archive-url = https://web.archive.org/web/20160309065821/https://www.riversofsteel.com/routestoroots/3RsWindows/homestead_works.html | archive-date = March 9, 2016 | url-status = dead }} The presence of the Allegheny, Monongahela, and Ohio rivers provided transport for the heavy materials used in steel production. Each plant was near to or alongside a river.
Carnegie agreed to Frick's subsequent proposal that the various plants and assets, including H. C. Frick & Company, be consolidated into a single company. This consolidation occurred on July 1, 1892, with the formation of the Carnegie Steel Company.Nasaw, D., 2006, p. 396
Operations
The company headquarters were located in the Carnegie Building, an early skyscraper in Downtown Pittsburgh.{{cite web | url = http://www.city.pittsburgh.pa.us/wt/html/mellon_square.html | title = Mellon Square | access-date = 2008-01-22 | url-status = dead | archive-url = https://web.archive.org/web/20080306043051/http://www.city.pittsburgh.pa.us/wt/html/mellon_square.html | archive-date = March 6, 2008 | df = mdy-all }} Built to show its use of steel in its construction, the building was fifteen stories high and was left uncovered for a full year. The Carnegie Building was demolished in 1952.{{Cite web |title=Pittsburgh's Feuding Architectural Landscape. And a Bell Tower. |url=https://www.doorsopenpgh.org/benebby-blog/pittsburghs-feuding-architectural-landscape-and-a-bell-tower |access-date=2023-04-24 |website=Doors Open Pittsburgh |language=en-US}}
Carnegie Steel made major technological innovations in the 1880s, especially the installation of the open hearth furnace system at Homestead in 1886. It now became possible to make steel suitable for structural beams and, with the advanced work of George Lauder in arms and armament, for armor plate for the US Navy and the militaries of other governments, which paid far higher prices for the premium product. In addition, the plant moved increasingly toward the continuous system of production. Carnegie installed vastly improved systems of material-handling, like overhead cranes, hoists, charging machines, and buggies. All of this greatly sped the process of steelmaking and allowed the production of far vaster quantities of steel. As the mills expanded, the labor force grew rapidly, especially less skilled workers. The more skilled union members reacted with the unsuccessful 1892 Homestead Strike along with demands for reduced working hours and against pay cuts. After the unsuccessful strike the company continued to expand and profits grew year on year, with the company having earned net profits of $21 million in 1899.Nasaw, D., 2006, p. 578
J&L Steel was the most important competitor to the Carnegie Steel Company (and later to U.S. Steel) in the vicinity of Pittsburgh.
| class="wikitable"
|+Carnegie Operations{{Cite web|url=https://www.loc.gov/resource/g3824p.ct008390/?r=0.666,0.41,0.225,0.088,0|title=Map of the Pittsburgh district showing railroad terminals and location of iron and steel works having track connections (circa 1906)|website=Library of Congress }} !Name !Location !Rail Service !Type of Facility |
| Carnegie Carrie Furnaces
|Rankin |Union RR |Steel Mill – 5 Blast furnace stacks |
| Clark works
|Pittsburgh |Allegheny Valley |Hoops, bands, light rails |
| Donora works
|Donora |Pgh, Virginia & Charleston |Steel Mill – 2 Blast furnace stacks |
| Duquesne works
|Cochran |Union RR |Steel Mill – 4 Blast furnace stacks |
| Edgar Thomson works
|Union RR |Steel Mill – 11 Blast furnace stacks |
| Homestead works
|Munhall |Union RR |Steel Mill |
| Howard axle works
|Howard |Union RR |Forge |
| Isabella furnaces
|Etna |West Penn |Steel Mill – 3 Blast furnace stacks |
| Lower Union Mills
|Pittsburgh |Allegheny Valley |Iron Mill |
| Lucy furnaces
|Pittsburgh |Allegheny Valley |Steel Mill – 2 Blast furnace stacks |
| Monessen works
|Monessen |Pittsburgh and Lake Erie |Rolling Mill and Steel works |
| McCutcheon works
|Allegheny |Pittsburgh and Western |Hoops, bands, light rails |
| Painter works
|South Side |Pittsburgh and Lake Erie |Processing |
| Upper Union mills
|Pittsburgh |Allegheny Valley |Iron Mill |
| Galvanizing plant
|South Side |Pittsburgh and Lake Erie |Processing |
Sale
Carnegie Steel Company was sold in 1901 to U.S. Steel, a newly formed organization set up by J. P. Morgan.Nasaw, D., 2006, pp. 580–588 It sold at roughly $492 million{{Cite web|url=http://www.fundinguniverse.com/company-histories/united-states-steel-corporation-history/|title=History of United States Steel Corporation – FundingUniverse|website=www.fundinguniverse.com|access-date=2019-05-14}} (${{formatnum:{{Inflation|US|.492|1900|r=1}}}} billion+ today), of which $226 million (${{formatnum:{{Inflation|US|.226|1900|r=1}}}} billion+ today) went to Carnegie himself.Nasaw, D., 2006, p. 687 U.S. Steel was a conglomerate with subsidiary companies. The name of the subsidiary company was changed to the Carnegie-Illinois Steel Company in 1936, incorporating the name of the former Illinois Steel Company.
See also
References
{{Reflist|2}}
Further reading
- {{Cite book |last=Krass |first=Peter |title=Carnegie |date=2002 |pages=612 |url=https://www.questia.com/library/book/carnegie-by-peter-krass.jsp |access-date=August 25, 2017 |archive-date=June 4, 2011 |archive-url=https://web.archive.org/web/20110604183810/http://www.questia.com/library/book/carnegie-by-peter-krass.jsp |url-status=dead }} A standard scholarly biography, along with Nasaw and Wall.
- {{Cite book |last=Krause |first=Paul |title=The Battle for Homestead, 1880–1892: Politics, Culture, and Steel |url=https://archive.org/details/battleforhomeste00krau |url-access=registration |publisher=University of Pittsburgh Press |date=1992 |pages=[https://archive.org/details/battleforhomeste00krau/page/548 548]}}
- {{Cite book |last=Nasaw |first=David |title=Andrew Carnegie |url=https://archive.org/details/andrewcarnegie00nasa |url-access=registration |date=2006|publisher=Penguin Press |isbn=978-1-59420-104-2 }} Major biography along with Krass and Wall.
- {{Cite book |last=Misa |first=Thomas J. |title=A Nation of Steel: The Making of Modern America, 1865–1925 |date=1995 |archive-url=https://archive.today/20120805234054/http://www.umn.edu/~tmisa/NOS/1.1_intro.html |url=http://www.umn.edu/~tmisa/NOS/1.1_intro.html |archive-date=August 5, 2012 |access-date=January 8, 2020 |url-status=bot: unknown }}
- {{Cite journal |last=Sabadasz |first=Joel |title=The Development of Modern Blast Furnace Practice: The Monongahela Valley Furnaces of the Carnegie Steel Company, 1872–1913 |journal=IA, The Journal of the Society for Industrial Archeology |volume=18 |issue=1/2 |date=1992 |pages=94–105 |jstor=40968252}}
- {{Cite book |last=Wall |first=Joseph |title=Andrew Carnegie |publisher=Oxford University Press |date=1970 |pages=1137}} A standard biography along with Nasaw and Krass.
External links
- {{HAER |survey=OH-33 |id=oh0088 |title=Carnegie Steel-Ohio Works, Steam Engines, 912 Salt Springs Road, Youngstown, Mahoning County, OH |photos=22 |cap=2}}
- [https://historicpittsburgh.org/islandora/object/pitt%3AUS-QQS-MSS315/viewer Carnegie Steel Company Records], Detre Library & Archives, Heinz History Center.
{{Pittsburgh}}
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Category:Steel companies of the United States
Category:Lauder Greenway family
Category:Defunct manufacturing companies based in Pittsburgh
Category:Manufacturing companies established in 1892
Category:Manufacturing companies disestablished in 1901
Category:1892 establishments in Pennsylvania