Andrew Carnegie

Summary

Andrew Carnegie, born in 1835 in Scotland, overcame poverty and hardship to become one of the wealthiest men of his time. Starting as a factory worker, he quickly rose through the ranks, investing wisely and founding Carnegie Steel. Despite his success, his reputation was tarnished by the Homestead Strike of 1892. In 1901, he sold his steel company for $480 million, becoming the world's richest man. Carnegie devoted the rest of his life to philanthropy, giving away 90% of his wealth, funding over 3,000 libraries, and leaving a lasting legacy of education and charity.

Takeaways

• 😀 Carnegie was born in 1835 in Dunfermline, Scotland, and immigrated to Pittsburgh in 1848 due to the decline of the local linen industry.
• 😀 Despite his family's poverty, Carnegie's mother instilled in him a drive for success and the desire to redeem the family's failures.
• 😀 Carnegie's first job at a textile factory paid just $1.20 per week, but he dedicated his free time to self-education at a local library.
• 😀 He impressed his employers by teaching himself Morse code, which led to him becoming a telegrapher for the Pennsylvania Railroad at age 17.
• 😀 Carnegie's quick thinking during a train crash in 1855 earned him the respect of Tom Scott, leading to him becoming Scott's protégé.
• 😀 Over the next 12 years, Carnegie made profitable investments, often using insider information, including in the railroad and steel industries.
• 😀 Carnegie saw the switch from iron to steel tracks as an opportunity, leading him to open his first steel plant in 1875 and dominate the industry.
• 😀 By 1890, Carnegie's income was more than $2 million annually, a fortune he chose to give away rather than hoard.
• 😀 Carnegie believed in the power of education, establishing libraries as his signature philanthropic contribution to help others access knowledge.
• 😀 Despite his philanthropic actions, conditions at Carnegie's steel plants were harsh, and the 1892 Homestead strike damaged his reputation as a worker advocate.
• 😀 In 1901, Carnegie sold his steel company to J.P. Morgan for $480 million, becoming the richest man in the world, and devoted his remaining years to philanthropy.
• 😀 Carnegie's belief in wealth distribution led him to donate 90% of his fortune, approximately $350 million, to charity, establishing a lasting legacy.

Q & A

What was Andrew Carnegie's early life like, and how did it shape his future?

Andrew Carnegie was born in 1835 in Dunfermline, Scotland, into a family that struggled financially due to the decline of the local linen industry. After moving to Pittsburgh, he worked at a textile factory, earning low wages. His mother emphasized the importance of success and redemption through him, motivating Carnegie to educate himself and improve his circumstances.

How did Carnegie's relationship with his mother influence his career?

Carnegie's mother, Margaret, played a crucial role in shaping his ambition. She repeatedly told him that the family had suffered from his father's failure and that she wanted redemption through his success. This pressure motivated Carnegie to work hard, self-educate, and strive for greater opportunities in life.

What was Carnegie's first job in America, and how did it set the stage for his future?

At age 12, Carnegie got his first job at a textile factory in Pittsburgh, working 12-hour shifts for $1.20 a week. This early exposure to hard work and the realities of industrial labor shaped his understanding of business and the value of opportunity, pushing him to seek better prospects and eventually enter the telegraph industry.

What significant accomplishment helped Carnegie gain the attention of Tom Scott?

Carnegie impressed Tom Scott, a top executive at the Pennsylvania Railroad, by teaching himself to decipher Morse code by ear. His ability to understand and transmit messages quickly earned him recognition and a position as Scott's personal telegrapher, offering him valuable insight into the workings of big business.

How did Carnegie handle the crisis involving a train wreck in 1855, and what was the result?

In 1855, when news of a train wreck came in while Tom Scott was out of the office, Carnegie took the initiative to send orders to clear the wreckage, signing Scott's initials. His quick thinking impressed Scott, who made Carnegie his protege, thus accelerating his career in business.

What strategies did Carnegie use to dominate the steel industry?

Carnegie used highly efficient production methods to lower the cost of steel, enabling him to cut prices and outcompete rivals. He sought to monopolize the steel industry by driving competitors out of business through this pricing strategy, eventually becoming the largest producer of steel in the U.S.

What was Carnegie's relationship with labor and how did it impact his legacy?

Carnegie's relationship with labor was complicated. Despite advocating for workers' rights in his writings, he chose to side with management during the violent Homestead strike of 1892, hiring armed guards to break the strike. This tarnished his image as a friend of the working class, though his business continued to grow.

How did Carnegie make the decision to sell his steel company to J.P. Morgan?

In 1901, at the age of 65, Carnegie decided to sell his steel company to financier J.P. Morgan for $480 million, making it the largest buyout in U.S. history at the time. This sale allowed him to focus entirely on philanthropy, and it solidified his status as the richest man in the world.

What was Andrew Carnegie's philosophy regarding wealth and philanthropy?

Carnegie believed that the wealthy had a moral obligation to give away their fortunes for the public good. He famously stated that 'the man who dies rich dies disgraced,' and he spent the latter part of his life donating around 90% of his fortune to causes like education, libraries, and scientific research.

How did Carnegie's philanthropy affect the world, and what are some lasting legacies of his donations?

Carnegie's philanthropy has had a lasting impact, especially through the establishment of over 2,500 public libraries worldwide. His belief in education as a means of social upliftment helped millions of people, and his foundations continue to support various charitable causes today.