Company type | Partnership |
---|---|
Industry | Steel, coke, railroad |
Founded | July 1, 1892 |
Founders | Andrew Carnegie Henry Clay Frick George Lauder Henry Phipps Jr. |
Defunct | March 2, 1901 |
Successor | U.S. Steel |
Headquarters | Pittsburgh, Pennsylvania |
Products |
|
Services | Manufacturing |
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 men in history.
Carnegie began the construction of his first steel mill, the Edgar Thomson Steel Works, in 1872 at Braddock, Pennsylvania. [1] The Thomson Steel Works began producing rails in 1874. [2] 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. [3]
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. [4] 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. [5]
The company headquarters were located in the Carnegie Building, an early skyscraper in Downtown Pittsburgh. [6] 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. [7]
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. [8]
J&L Steel was the most important competitor to the Carnegie Steel Company (and later to U. S. Steel) in the vicinity of Pittsburgh.
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 | Braddock | 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 |
Carnegie Steel Company was sold in 1901 to U.S. Steel, a newly formed organization set up by J. P. Morgan. [10] It sold at roughly $492 million [11] ($18 billion+ today), of which $226 million ($8.3 billion+ today) went to Carnegie himself. [12] 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.
Andrew Carnegie was a Scottish-American industrialist and philanthropist. Carnegie led the expansion of the American steel industry in the late 19th century and became one of the richest Americans in history.
Homestead is a borough in Allegheny County, Pennsylvania, United States, along the Monongahela River 7 miles (11 km) southeast of downtown Pittsburgh. The borough is known for the Homestead strike of 1892, an important event in the history of labor relations in the United States. The population was 2,884 at the 2020 census. It is part of the Pittsburgh metropolitan area.
The history of Pittsburgh began with centuries of Native American civilization in the modern Pittsburgh region, known as Jaödeogë’ in the Seneca language. Eventually, European explorers encountered the strategic confluence where the Allegheny and Monongahela Rivers meet to form the Ohio, which leads to the Mississippi River. The area became a battleground when France and Great Britain fought for control in the 1750s. When the British were victorious, the French ceded control of territories east of the Mississippi.
The Homestead strike, also known as the Homestead steel strike, Homestead massacre, or Battle of Homestead, was an industrial lockout and strike that began on July 1, 1892, culminating in a battle in which strikers defeated private security agents on July 6, 1892. The governor responded by sending in the National Guard to protect strikebreakers. The dispute occurred at the Homestead Steel Works in the Pittsburgh-area town of Homestead, Pennsylvania, between the Amalgamated Association of Iron and Steel Workers and the Carnegie Steel Company. The final result was a major defeat for the union strikers and a setback for their efforts to unionize steelworkers. The battle was a pivotal event in U.S. labor history.
Henry Clay Frick was an American industrialist, financier, and art patron. He founded the H. C. Frick & Company coke manufacturing company, was chairman of the Carnegie Steel Company and played a major role in the formation of the giant U.S. Steel manufacturing concern. He had extensive real estate holdings in Pittsburgh and throughout the state of Pennsylvania. He later built the Neoclassical Frick Mansion in Manhattan, and upon his death donated his extensive collection of old master paintings and fine furniture to create the celebrated Frick Collection and art museum. However, as a founding member of the South Fork Fishing and Hunting Club, he was also in large part responsible for the alterations to the South Fork Dam that caused its failure, leading to the catastrophic Johnstown Flood. His vehement opposition to unions also caused violent conflict, most notably in the Homestead Strike.
Thomas Morrison Carnegie was a Scottish-born American industrialist. He was the brother of steel magnate Andrew Carnegie and co-founder of the Edgar Thomson Steel Works.
The Columbia Rolling Mill, an iron and steel works, operated in Uniontown, Pennsylvania, from 1887 to 1895. In 1895 it was sold to Andrew Carnegie, who moved the mill to Homestead, Pennsylvania. The mill was Uniontown's largest industry in the early 1890s.
The Jones and Laughlin Steel Corporation, also known as J&L Steel or simply as J&L, was an American steel and iron manufacturer that operated from 1852 until 1968. The enterprise began as the American Iron Company, founded in 1852 by Bernard Lauth and Benjamin Franklin Jones, about 2.5 mi (4.0 km) south of Pittsburgh along the Monongahela River. Lauth's interest was bought in 1854 by James Laughlin. The first firm to bear the name of Jones and Laughlin was organized in 1861, and headquartered at Third & Ross in downtown Pittsburgh.
Henry Phipps Jr. was an American entrepreneur known for his business relationship with Andrew Carnegie and involvement with the Carnegie Steel Company. He was also a successful real estate investor. After selling his stock in Carnegie Steel, he devoted a great deal of his time and money to philanthropic works.
Homestead Steel Works was a large steel works located on the Monongahela River at Homestead, Pennsylvania in the United States. The company developed in the nineteenth century as an extensive plant served by tributary coal and iron fields, a railway 425 miles (684 km) long, and a line of lake steamships. The works was also the site of one of the more serious labor disputes in U.S. history, which became known as the Homestead strike of 1892.
Union Railroad is a Class III switching railroad located in Allegheny County in Western Pennsylvania. The company is owned by Transtar, Inc., which is a subsidiary of Fortress Transportation and Infrastructure Investors, after being acquired from U.S. Steel in 2021. The railroad's primary customers are the three plants of the USS Mon Valley Works, the USS Edgar Thomson Steel Works, the USS Irvin Works and the USS Clairton Coke Works.
Amalgamated Association of Iron and Steel Workers (AA) was an American labor union formed in 1876 to represent iron and steel workers. It partnered with the Steel Workers Organizing Committee of the CIO, in November 1935. Both organizations disbanded May 22, 1942, to form a new organization, the United Steelworkers.
The Edgar Thomson Steel Works is a steel mill in the Pittsburgh area communities of Braddock and North Braddock, Pennsylvania. It has been active since 1875. It is currently owned by U.S. Steel and is known as Mon Valley Works – Edgar Thomson Plant.
Carrie Furnace is a former blast furnace located along the Monongahela River in the Pittsburgh area industrial town of Swissvale, Pennsylvania, and it had formed a part of the Homestead Steel Works. The Carrie Furnaces were built in 1884 and they operated until 1982. During its peak, the site produced 1,000 to 1,250 tons of iron per day. All that is left of the site are furnaces #6 and #7, which operated from 1907 to 1978, and its hot metal bridge. The furnaces, designated a National Historic Landmark in 2006, are among the only pre-World War II 20th century blast furnaces to survive.
Before 1800 A.D., the iron and steel industry was located where raw material, power supply and running water were easily available. After 1950, the iron and steel industry began to be located on large areas of flat land near sea ports. The history of the modern steel industry began in the late 1850s. Since then, steel has become a staple of the world's industrial economy. This article is intended only to address the business, economic and social dimensions of the industry, since the bulk production of steel began as a result of Henry Bessemer's development of the Bessemer converter, in 1857. Previously, steel was very expensive to produce, and was only used in small, expensive items, such as knives, swords and armor.
The economy of Pittsburgh, Pennsylvania is diversified, focused on services, medicine, higher education, tourism, banking, corporate headquarters and high technology. Once the center of the American steel industry, and still known as "The Steel City", today the city of Pittsburgh has no steel mills within its limits, though Pittsburgh-based companies such as US Steel, Ampco Pittsburgh and Allegheny Technologies own several working mills in the Pittsburgh metropolitan area.
The Carnegie Library of Homestead is a public library in Munhall, Pennsylvania founded by Andrew Carnegie in 1898.
David P. Demarest was an American academic and writer best known for his work on organized labor, social geography, and US working-class literature.
The US iron and steel industry has paralleled the industry in other countries in technological developments. In the 1800s, the US switched from charcoal to coal in ore smelting, adopted the Bessemer process, and saw the rise of very large integrated steel mills. In the 20th century, the US industry successively adopted the open hearth furnace, then the basic oxygen steelmaking process. Since the American industry peaked in the 1940s and 1950s, the US industry has shifted to small mini-mills and specialty mills, using iron and steel scrap as feedstock, rather than iron ore.
Carnegie Brothers and Company, Ltd. was created by the consolidation of the steel businesses owned by Andrew Carnegie in the early 1880s. Those steel and coke works that were consolidated were:
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