Big Business Report

Andrew Carnegie was in the business of steel. He was the leader of the American steel

industry from eighteen seventy three to nineteen hundred and one. He built the

Carnegie Steel Company which made him the second richest man in history. His

business got started because Carnegie decided that he no longer wanted to be a

capitalist with several diversified interests. In 1870, decided that steel would replace iron

in the manufacturing industry. So taking his own funds, he invested in getting his own

furnace and then a second one in 1872. This led to him organizing a Bessemer steel rail

company with a limited partnership.

His business grew to the level it did because he controlled the integrated iron and steel

operations completely. In the 1880’s his business was the largest manufacturer of steel,

pig iron and coke in the world. He expanded his empire by buying out all of his

competitors. By 1889, his business of steel exceeded production in the United States

and the United Kingdom in which he was a major player in. The businesses he acquired

included the J.Edgar Thomson Steel Works, Pittsburgh Bessemer Steel Works, Lucy

Furnaces, Union Iron Mills, Union Mill Hartman Steel Works, Keystone Bridge Works,

Scotia and the Frick Coke Company. With these businesses and the fast and efficient

mass production of steel, Carnegie was able to accumulate a mass of wealth.

The positive and negative effects of the business in the late nineteen hundreds were

that goods were produced faster and cheaper than before. Transportation from the steel

production allowed an increase in the railroad industry allowing for better

communication and shipments. “Advancements in steel production and improved

management techniques allowed steel mills to boost their production, which drove the

prices down. This aided an already expanding market, as well as expanding the

pocketbooks of a few individuals.” Urbanization was also on the increase creating more

jobs and opportunities for workers. The negative effects were pollution, crowded cities

and child labor law issues. There were also long hours, unsafe working conditions and

low wages for employees. Carnegie was also ruthless in business undercutting all of his

competitors until they were no longer making money and then he would buy them out

for little money.

Carnegie and his business affected society today in a very positive way. Carnegie was

generous contributions to various institutions before his death. He donated to several

cultural and educational institutes. He set up trust funds that he credited to being for the

betterment of mankind. He set up trust funds for the building and upkeep of three

thousand public libraries. The Carnegie Institute of Pittsburgh was founded and opened

in eighteen ninety five. The Institute housed an art gallery and at his request also

because the first place to buy contemporary art. It also housed a natural history

museum and a music hall. There was a group of technical institutes that flourished in

the Carnegie Institute of Technology and is now known as Carnegie Mellon University.
There is also the Carnegie Institute of Washington that does research in both physical

and natural science. The most famous out of all of it is the Carnegie Hall in New York

City. He also funded the Foundation for the Advancement of Teaching which is used to

provide pensions for university professors. Finally, he funded the Endowment of

International Peace which was to see to the abolition of war.

The pros and cons of big business was that the U.S went from being purely agricultural

to an industrialized giant. Transportation, communication and the population explosion

caused the U.S to become the leading power when it came to the Industrial Age. New

inventions came into play that made life more beneficial. Electricity, machinery

improvements and business expansions made the working man move into more skilled

positions. The cons of big business were the poorly treated workers as well as low

wages and unsafe working conditions. There was the stripping and overuse of natural

resources as well as an abundance of pollution. The gap between the rich and the poor

was enormous. The overcrowding in cities led to many issues such as working classes

and high disease rates. There was both social and racial segregation that would cause

tensions.

There are not many of the old pros and cons that still exist from the Industrial Age.

While there may be a slight issue with racism and sexism in the workplace, there have
been things formed to take care of it such as the NAACP and affirmative action to

ensure work for the disadvantaged.

The Big business age brought a lot of changes and shaped America not what it is today.

Carnegie was a major contributor in that sense and has left lasting marks due to his

generosity

References:

"Andrew Carnegie." Encyclopedia of World Biography. 2004. Retrieved March 24, 2011
from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-3404701139.html

“Industrial Revolution.” 2001. Retrieved March 24, 2011 from Evansville.net:

http://www.42explore2.com/industrial.htm

Porter, Glenn. “Industrial Revolution.” Retrieved March 24, 2011 from MSN Encarta:
http://encarta.msn.com/encyclopedia_761577952_1/Industrial_Revolution.html