who bought carnegie's steel company in 1901
J. P. Morgan


Andrew Carnegie in 1900. The goal was to buy out Carnegie's steel business and merge it with several other steel, coal, mining and shipping firms. After financing the creation of the Federal Steel Company, he finally merged it in 1901 with the Carnegie Steel Company and several other steel and iron businesses (including Consolidated Steel and Wire Company, owned by William Edenborn), to form the United States Steel Corporation. In 1901 U.S. Steel was the first billion-dollar company in the world, having an authorized capitalization of
13470290
Carnegie Steel Company


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 formed in 1892 and was subsequently sold in 1901 in one of the largest ever business transactions of the early 20th century, to become the major component of the United States Steel Corporation. The subsequent sale made Carnegie one of the richest men in history. Carnegie began the construction of his first steel mill, the Edgar Thomson
916276
Carnegie Steel Company


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. J&L Steel was the most important competitor to the Carnegie Steel Company and later to U. S. Steel in the vicinity of Pittsburgh. Carnegie Steel Company was sold in 1901
916281
Henry Flagler


in 1892, the first step in the dissolution of the trust. Upon his ascent to the presidency, Theodore Roosevelt initiated dozens of suits under the Sherman Antitrust Act and coaxed reforms out of Congress. In 1901, U.S. Steel, now controlled by J. Pierpont Morgan, having bought Andrew Carnegie's steel assets, offered to buy Standard's iron interests as well. A deal brokered by Henry Clay Frick exchanged Standard's iron interests for U.S. Steel stock and gave Rockefeller and his son membership on the company's board of directors.
12479899
John D. Rockefeller


the Sherman Antitrust Act and coaxed reforms out of Congress. In 1901, U.S. Steel, then controlled by J. Pierpont Morgan, having bought Andrew Carnegie's steel assets, offered to buy Standard's iron interests as well. A deal brokered by Henry Clay Frick exchanged Standard's iron interests for U.S. Steel stock and gave Rockefeller and his son membership on the company's board of directors. In full retirement at age 63, Rockefeller earned over $58 million in investments in 1902. One of the most effective attacks on Rockefeller and
15106806
Andrew Carnegie


business. His steel enterprises were bought out for $303,450,000. Carnegie's share of this amounted to $225.64 million (in , $), which was paid to Carnegie in the form of 5%, 50-year gold bonds. The letter agreeing to sell his share was signed on February 26, 1901. On March 2, the circular formally filing the organization and capitalization (at $1.4 billion – 4 percent of U.S. national wealth at the time) of the United States Steel Corporation actually completed the contract. The bonds
1729739
Illinois Steel Company


market to the west of Chicago, where Carnegie lacked sufficient supply lines. The strategy proved successful. In 1898, the Illinois Steel Company acquired the Minnesota Iron Company, Lorain Steel Company of Ohio, the Johnson Company of Pennsylvania, and the Elgin, Joliet & Eastern Railway, forming the Federal Steel Company. Upon completion of the merge, general counsel Elbert Henry Gary became president of the company. In February 1901, Gary worked with J. P. Morgan to have him acquire Carnegie Steel. Days after the acquisition was approved,
3547991
U.S. Steel


The company experienced significant downsizing during the 1980s; a decline in market capitalization resulted in its removal from the S&P 500 Index in 2014. J. P. Morgan and attorney Elbert H. Gary founded U.S. Steel on March 2, 1901 (incorporated on February 25) by combining Andrew Carnegie's Carnegie Steel Company with Gary's Federal Steel Company and William Henry "Judge" Moore's National Steel Company for $492 million ($ billion today). At one time, U.S. Steel was the largest steel producer and largest corporation in the world
12904984
Monopoly


being a monopoly. J. P. Morgan and Elbert H. Gary founded U.S. Steel in 1901 by combining Andrew Carnegie's Carnegie Steel Company with Gary's Federal Steel Company and William Henry "Judge" Moore's National Steel Company. At one time, U.S. Steel was the largest steel producer and largest corporation in the world. In its first full year of operation, U.S. Steel made 67 percent of all the steel produced in the United States. However, U.S. Steel's share of the expanding market slipped to 50 percent by 1911,
19193993
U.S. Steel recognition strike of 1901


National Steel and American Steel Hoop subsidiaries into its Carnegie Steel arm in 1903, the union found itself servicing contracts with the now-nonexistent Steel Hoop company rather than Carnegie. In the depression of 1904, the Carnegie Company demanded significant wage cuts. The union balked and struck, but by December the strike had been broken and the union had lost almost all of its Western affiliates. U.S. Steel idled AA mills whenever possible, breaking the union through attrition. Local AA unions often assisted in their own destruction. To make up
3486370
History of the steel industry (1850–1970)


battle between strikers and private security guards. The dispute took place at Carnegie's Homestead Steel Works between the Amalgamated Association of Iron and Steel Workers and the Carnegie Steel Company. The final result was a major defeat for the union and a setback for efforts to unionize steelworkers. Carnegie sold all his steel holdings in 1901; they were merged into U.S. Steel and it was non-union until the late 1930s. By 1900 the US was the largest producer and also the lowest cost producer, and demand for steel seemed inexhaustible.
3304818
American business history


steel market. U.S. Steel was the iconic billion-dollar industrial corporation. It was formed by banker J. P. Morgan (1837-1913) and lawyer Elbert H. Gary (1846-1927) in 1901 by combining the Carnegie Steel Company with Gary's Federal Steel Company, and several smaller concerns. Carnegie permanently left industry to become a philanthropist on a global basis, and judge Gary ran the operation. In 1907, it received federal permission to buy out its largest competitor, the Tennessee Coal, Iron and Railroad Company,
8512933
Andrew Carnegie


Pittsburgh's Carnegie Steel Company, which he sold to J. P. Morgan in 1901 for $303,450,000. It became the U.S. Steel Corporation. After selling Carnegie Steel, he surpassed John D. Rockefeller as the richest American for the next several years. Carnegie devoted the remainder of his life to large-scale philanthropy, with special emphasis on local libraries, world peace, education, and scientific research. With the fortune he made from business, he built Carnegie Hall in New York, NY, and the Peace Palace and founded the
1729713
Technological and industrial history of the United States


a steel plant in Braddock, Pennsylvania at the junction of several major railroad lines. Carnegie earned enormous profits by pioneering vertical integration; he owned the iron ore mines in Minnesota, the transport steamboats on the Great Lakes, the coal mines and coke ovens, and the rail lines delivering the coke and ore to his Pennsylvania mills. By 1900, the Carnegie Steel Company was producing more steel than all of Britain and in 1901 Carnegie sold his business to J.P. Morgan's U.S. Steel earning Carnegie $480 million personally. The ability
4362202
Charles M. Schwab


began his career as an engineer in Andrew Carnegie's steelworks, starting as a stake-driver in the engineering corps of the Edgar Thomson Steel Works and Furnaces in Braddock, Pennsylvania. He was promoted often, including to the positions of general superintendent of the Homestead Works in 1887 and general superintendent of the Edgar Thomson Steel Works in 1890. In 1897, at only 35 years of age, he became president of the Carnegie Steel Company. In 1901, he helped negotiate the secret sale of Carnegie Steel to a group of
4724345
James Gayley


Carnegie for much of his professional life, and was part of Carnegie's board of managers during the final years of Carnegie Steel. Due to his prolific involvement and as recognition of his services, Gayley was appointed as the company's first vice president when Carnegie Steel merged to form the United States Steel Corporation in 1901. At his new position, he oversaw the shipping and transportation of ore, in upwards of 30,000,000 tons annually. Gayley served in this capacity until his resignation in 1908 due to illness. Gayley became a member
11022599
Bessemer and Lake Erie Railroad


north to Conneaut Harbor. The company was created largely out of a series of small predecessor companies including the Pittsburgh, Shenango and Lake Erie Railroad, and the Butler and Pittsburgh Railroad Company. The company was renamed the Bessemer and Lake Erie Railroad in 1900. Carnegie Steel had an exclusive 999-year lease to the PS&LE. This lease was acquired by US Steel when that company acquired Carnegie Steel in 1901. At the end of 1925 B&LE operated 228 miles of road on 631 miles of track; at the end of 1970 mileages were
6470308
Carnegie Brothers and Company


Frick being the major supplier of coke to the new company. Thomas Carnegie, Andrew Carnegie’s brother died in 1886 and in 1889 Frick began to manage a portion of the company. Frick also bought company shares. Frick advanced and was promoted to chairman of the company. After his promotions Frick worked with Carnegie to reorganize much of business. Frick organized many improvements including a buy out of the Duquesne Steel works. Frick acted to combine "Carnegie Brothers & Company, Limited" and "Carnegie, Phipps & Company" into
2567168
William B. Dickson


employees. Dickson was one of the last of Andrew Carnegie's "young geniuses" to rise through the ranks to become a junior partner in Carnegie Steel, where he designed America's first corporate safety department and pension plan. When J.P. Morgan founded U.S. Steel in 1901, Dickson became assistant to the president of the new corporation and later first vice president. In 1915, he became vice president, treasurer, and director of Midvale Steel and Ordnance Company, which during World War I was the third largest steel company in the
5717338
Edgar Thomson Steel Works


in sympathy. Frick took extreme measures. He brought in thousands of strikebreakers. When he sent in 300 Pinkerton guards to protect the strikebreakers, a riot broke out, resulting in 10 deaths and thousands of injuries. To prevent any further bloodshed, the governor, Robert Pattison, sent two brigades to stop the fighting. Carnegie, McCandless and Company recommenced operations with non-union immigrant workers. In 1901, Carnegie sold the Carnegie Steel Company, including the Edgar Thomson Works, to J. P. Morgan, Elbert H. Gary and
6562841
Homestead Steel Works


for their efforts to unionize steelworkers. In 1896, Carnegie built the Carnegie Library of Homestead in nearby Munhall as part of concessions to the striking workers. (This however has never been validated. Carnegie had the plans drawn up in the late 1880s, and run ins with the Union bosses kept him from actually building it.) In 1901, Carnegie sold his operations to U.S. Steel. On January 6, 1906 it was announced that the company would undergo upgrades and expansions worth seven million dollars ($ today.) The
10507309
James Gayley


James Gayley (October 11, 1855 – February 25, 1920) was an American chemist and steel metallurgist who served as a managing director of the Carnegie Steel Company, and as the first vice president of U.S. Steel from 1901 to 1908. He is credited with many inventions which greatly improved the fields of steel and iron making. For his contributions in the field of metallurgy, he was awarded the Elliott Cresson Medal in 1909, and the Perkin Medal in 1913. Gayley was born on October 11, 1855, in Lock
11022593
U.S. Steel recognition strike of 1901


The U.S. Steel recognition strike of 1901 was an attempt by the Amalgamated Association of Iron, Steel and Tin Workers (the AA) to reverse its declining fortunes and organize large numbers of new members. The strike failed. The AA had formed in 1876. It was a labor union of skilled iron and steel workers which was deeply committed to craft unionism. However, technological advances had reduced the number of skilled workers in both industries. In 1892, the AA had lost a bitter strike at the Carnegie Steel Company's steel
3486358
U.S. Steel recognition strike of 1901


only combined Elbert Gary and J.P. Morgan's Federal Steel with Andrew Carnegie's steel operations, it also incorporated the plants of the American Tin Plate Co. The AA was confronted with a crisis: It had to organize the plants of U.S. Steel before the corporation, with its relatively infinite resources, could stop the union drives. But the executive committee of U.S. Steel was equally aware of the threat the AA posed, and the company's board of directors secretly adopted a resolution on June 17, 1901, opposing any unionization attempt.
3486362
Henry Phipps Jr.


second largest shareholder. In 1901, Carnegie Steel Company was sold to the United States Steel Corporation; a newly formed organisation, set up by Pierpont Morgan. It sold for $400 million (approx. $13.3 billion today), of which $226 million went to Carnegie himself, and $48 million went to Phipps. In 1907, Henry Phipps established Bessemer Trust Company to manage his substantial assets that would be shared by his offspring following his death. In 1909, Phipps expanded his Cape Cod holdings to the entire
13462133
Joseph G. Butler Jr.


industrial activities centered on Youngstown, Ohio, where he became a pivotal figure in the community's transition from iron to steel production. In 1892, he joined local industrialist Henry Wick in the organization of the Ohio Steel Company, which built two Bessemer plants along the Mahoning River, just northwest of Youngstown. The company went into production in 1895, only to be sold four years later to the Pittsburgh-based National Steel Company. In 1901, the local plant became the Ohio Works of the Carnegie Steel Company, part of
2575618
Pittsburgh


headed to more safety in Canada. The American Civil War boosted the city's economy with increased iron and armament demand by the Union. Andrew Carnegie began steel production in 1875 at the Edgar Thomson Steel Works in North Braddock, Pennsylvania, which evolved into the Carnegie Steel Company. He adopted the Bessemer process to increase production. Manufacturing was key to growth of Pittsburgh and the surrounding region. Railroad lines were built into the city along both rivers, increasing transportation access to important markets. In 1901, J. P. Morgan and attorney
5198071
Duluth, Missabe and Northern Railway


, that Rockefeller would sell his stake in the railroads and mines of the Mesabi Range to the Carnegie Steel Company. Rockefeller sold the DM&N to U.S. Steel in 1901, who operated it as an independent company. In 1906 the DM&N extended its line to Coleraine, and in 1907 extended further to the Canisteo District to service the Canisteo and Orwell mines. The DM&N carried first shipment of iron from Canisteo in 1909. In order to continue iron ore shipments from Duluth, the DM&N played a big part in developing the St. Louis
14064342
U.S. Steel


or creativeness during its heyday. In 1901, it controlled two-thirds of steel production and, through its Pittsburgh Steamship Company, developed the largest commercial fleet on the Great Lakes. Because of heavy debts taken on at the company's formation—Carnegie insisted on being paid in gold bonds for his stake—and fears of antitrust litigation, U.S. Steel moved cautiously. Competitors often innovated faster, especially Bethlehem Steel, run by U.S. Steel's former first president, Charles M. Schwab. U.S. Steel's share of the expanding market
12904989
Union Railroad (Pittsburgh)


has resulted from the union of five different railroads between the years 1906 and 1915. The original URR extended from East Pittsburgh to Hays, a distance of six miles, and was constructed in the years 1894–1907. Four years later, Carnegie formed the Bessemer and Lake Erie Railroad under this exclusive ownership and arranged to lease PS&LE for 999 years. This arrangement stayed in place with the formation of U. S. Steel in 1901, which bought out Carnegie interests. The Union was expanded to include the several other mills in the Mon Valley
2424957
Homestead strike


and Illinois continued for a few more years, but the union continued to collapse. Many lodges disbanded, their members disillusioned. Others were easily broken in short battles. Carnegie Steel's Mingo Junction, Ohio, plant was the last major unionized steel mill in the country. But it, too, successfully withdrew recognition without a fight in 1903. AA membership sagged to 10,000 in 1894 from its high of over 24,000 in 1891. A year later, it was down to 8,000. A 1901 strike against Carnegie's successor company
12519604
Andrew Carnegie


producers and integrate them into one company, thereby eliminating duplication and waste. He concluded negotiations on March 2, 1901, and formed the United States Steel Corporation. It was the first corporation in the world with a market capitalization over $1 billion. The buyout, secretly negotiated by Charles M. Schwab (no relation to Charles R. Schwab), was the largest such industrial takeover in United States history to date. The holdings were incorporated in the United States Steel Corporation, a trust organized by Morgan, and Carnegie retired from
1729738
Stockport Central Library


, concentrating on steel. His companies prospered despite a depression and in 1901 were consolidated, and sold forming the United States Steel Corporation. With a personal fortune of $480 million, he endowed 2509 libraries worldwide and 660 libraries in Britain. Initially, Andrew Carnegie offered Stockport Corporation £10,000 for the erection of a free central library. The design was put out to competition and Bradshaw & Gass submitted a design costing £14,000. The Carnegie assessor, Percy S Worthington, award the 'premium' to them in October 1910
4402066
Edgar Thomson Steel Works


Stewart, James Robb Wilson and Thomas Carnegie. The firm was known as Carnegie, McCandless, and Company. The plant was named after J. Edgar Thomson, who was the president of the Pennsylvania Railroad. Carnegie Brothers and Company 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: The merging of these separate business operations into one resulted in the newly formed company owning an interest of nearly $5 million. On January 1, 1873
6562837
History of the steel industry (1850–1970)


rails, and coke in the world, with a capacity to produce approximately 2,000 tons of pig iron per day. In 1888, he 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. A consolidation of Carnegie's assets and those of his associates occurred in 1892 with the launching of the Carnegie Steel Company. Around that time, he asked his cousin, George Lauder to join him in
3304814
History of Pittsburgh


proceeded to play a key role in the development of the U.S. steel industry. He became a philanthropist: in 1890, he established the first Carnegie Library, in a program to establish libraries in numerous cities and towns by the incentive of matching funds. In 1895, he founded the Carnegie Institute. In 1901, as the U.S. Steel Corporation formed, he sold his mills to J.P. Morgan for $250 million, making him one of the world's richest men. Carnegie once wrote that a man who dies rich, dies
12954555
Mesabi Range


ore field or transportation business, and John D. agreed not to go into the steel business. The steelmakers adapted their mills to process the ore from the Mesabi range. Oliver broke with the agreement, and in response, John D. procured a monopoly of ore ship transportation on the Great Lakes. John D. sold his western ore holdings to J.P. Morgan for $90,900,000 soon after Morgan bought Carnegie's steel interests in 1901. Several large-scale strikes took place on the Mesabi Iron Range during the early 1900s. The first began
8152152
Carnegie Steel Company


to the United States Steel Corporation; a newly formed organization, set up by J.P. Morgan. It sold at roughly $492 million ($14.8 billion in 2019), of which $226 million went to Carnegie himself. 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. Changes in production processes to create steel had already appeared before the Carnegie Steel Company was sold. Steel manufacturers had begun to abandon the Bessemer converters and install
916282
History of the steel industry (1850–1970)


, American Steel and Wire, and National Tube) with two major integrated companies, Carnegie Steel and Federal Steel. It was capitalized at $1.466 billion, and included 213 manufacturing mills, one thousand miles of railroad, and 41 mines. In 1901, it accounted for 66% of America's steel output, and almost 30% of the world's. During World War I, its annual production exceeded the combined output of all German and Austrian firms. The Steel Strike of 1919 disrupted the entire industry for months,
3304820
Charles A. Otis


stayed until his death. Otis was a member of the Ohio Society of New York. In 1894, he became president of New Commercial National Bank. He retired from Otis Iron and Steel Company in 1899. By 1901, the Otis Iron and Steel Company merged with the Cleveland Rolling Mill Company into US Steel. The Jones and Laughlin Steel Company bought the former Otis Steel company along the Cuyahoga River in Cleveland was purchased in 1942. Otis retired from the New Commercial National Bank in 1904. Commercial Bank merged with the Mercantile
3749203
Carnegie Brothers and Company


a single company newly named Carnegie Steel Company, Limited on July 1, 1892. Carnegie Brothers & Company had contracts with railway and transportation in addition to, Keystone Bridge Company, Pittsburgh & Western Railway, Rail Makes’ Association, and the Steel Patent Company. These companies specialized in litigation for steel patents and production methods (Steel Patent Company of Philadelphia) and rail production (The Rail Makers’ Association). At the time many other companies, including Carnegie’s were working to establish uniformity of the railroads. These efforts
2567169
Carnegie Steel Company


formation of the Carnegie Steel Company. The company headquarters were in the Carnegie Building, an early skyscraper in Downtown Pittsburgh. 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. It was later rebuilt as a memorial in 2012. 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
916279
1901 Homestead Library & Athletic Club football team


). In late September 1901, Fultz announced the makeup of the 1901 team. The payroll for the 1901 Homestead team was $25,000 a year, which was paid by William Chase Temple (owner of the Pittsburgh Pirates) and officers of the Carnegie Steel Company. When Fultz first announced the lineup in late September, it included Pete Overfield (center from Penn), Bemus Pierce (left guard from the Carlisle Indian School), Art Poe (right end from Princeton), "Hoppy" Hunt (left end from
9392837
Andrew Carnegie


iron to be burnt away in a controlled and rapid way during steel production. Steel prices dropped as a result, and Bessemer steel was rapidly adopted for rails; however, it was not suitable 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 1883, Carnegie bought the
1729734
Carnegie Building (Pittsburgh)


The Carnegie Building, also known as the Carnegie Steel Building, was a high-rise building in Pittsburgh, Pennsylvania. The structure started construction in 1893 and was completed in 1895 as the city's tallest at the time. It was the first steel-framed skyscraper in Pittsburgh upon completion. The building served as the world headquarters of Carnegie Steel Company, a steel producing company of the late 19th century created by industrialist and philanthropist Andrew Carnegie to manage steel mills in the city, and later to become U.S. Steel. The
17764868
Lauder Greenway Family


The Lauder Greenway Family is a Scottish-American clan whose influence on, and involvement in, American political and economic affairs dates from the 1640’s through the contemporary era. The modern progenitor is George Lauder, Sr. (1815 - 1901), a Scottish businessman and political radical who raised his son, George Lauder, and nephew Andrew Carnegie. The two latter men would go on to create the Carnegie Steel Corporation, the forerunner to U.S. Steel and subsequently become amongst the richest men in the world. The genesis of
1593596
Tennessee Coal, Iron and Railroad Company


be listed on the inaugural Dow Jones Industrial Average, compiled in May 1896. However, it was not long before TCI was eclipsed by its principal competitor, the United States Steel Corporation, a huge conglomerate formed in 1901 out of the enormous Carnegie and Federal steel empires. By the time of the Panic of 1907, U. S. Steel felt confident enough to launch a takeover bid of its Southern rival. On the morning of Saturday November 2, banker and tycoon J. P. Morgan, one of the founders of U. S. Steel
3483876
Early history of private equity


Union, the Erie Railroad, Union Pacific and the Missouri Pacific Railroad. Later, J. Pierpont Morgan's J.P. Morgan & Co. would finance railroads and other industrial companies throughout the United States. In certain respects, J. Pierpont Morgan's 1901 acquisition of Carnegie Steel Company from Andrew Carnegie and Henry Phipps for $480 million represents the first true major buyout as they are thought of today. Due to structural restrictions imposed on American banks under the Glass–Steagall Act and other regulations in the 1930s, there was no private merchant banking
14271128
History of private equity and venture capital


Jay Cooke financed the United States Transcontinental Railroad. Later, J. Pierpont Morgan's J.P. Morgan & Co. would finance railroads and other industrial companies throughout the United States. In certain respects, J. Pierpont Morgan's 1901 acquisition of Carnegie Steel Company from Andrew Carnegie and Henry Phipps for $480 million represents the first true major buyout as they are thought of today. Due to structural restrictions imposed on American banks under the Glass–Steagall Act and other regulations in the 1930s, there was no private merchant banking industry in the United States
19222859
Carnegie Brothers and Company


Carnegie Brothers & 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: The merging of these separate business operations into one resulted in the newly formed company owning an interest of nearly $5 million. At the time, Andrew Carnegie owned over half of it. Henry Clay Frick began to supply Carnegie Brothers and Company with coal and coke that was required to operate the steel mills. This relationship progressed with the result in
2567167
Nathan L. Miller


career in Cortland as corporation counsel. He later moved to corporate law, and his rise in politics was strongly helped by his relationship with Andrew Carnegie and the United States Steel Corporation. Miller helped to effect the mergers that created this early mega-corporation. The merger helped Carnegie get out of the steel business and make him the richest man in the world at the time. Miller was New York State Comptroller from 1901 to 1903, first appointed to fill the unexpired term of Erastus C. Knight who had been elected Mayor of
4404009
J. P. Morgan


several other steel and iron businesses to consolidate them to create the United States Steel Corporation. Carnegie agreed to sell the business to Morgan for $480 million. The deal was closed without lawyers and without a written contract. News of the industrial consolidation arrived to newspapers in mid-January 1901. U.S. Steel was founded later that year and was the first billion-dollar company in the world with an authorized capitalization of $1.4 billion. Morgan was a member of the Union Club in New York City. When his friend,
13470306
American business history


the Civil War the British innovation of making inexpensive steel, which is much stronger than traditional ironwork, cause the radical transformation. Young Andrew Carnegie (1835–1919) was a key leader. He was not an engineer, but he gave experts in the mills in Pitsburgh their lead, and he moved to New York City to sell large quantities of steel for the new bridges, railways and skyscrapers. By 1890 Carnegie Steel was the world's largest manufacturer of pig iron, steel rails, and coke. In 1888, Carnegie bought
8512930
Benjamin Franklin Fairless


But he resigned from Republic Steel effective September 15, 1935, to join U.S. Steel. On August 28, U.S. Steel announced that it was merging its Illinois Steel (headquartered in Chicago) and Carnegie Steel (headquartered in Pittsburgh) subsidiaries into a single Carnegie-Illinois Steel Company (with headquarters in Pittsburgh), and that Fairless would be president of the new company. On September 17, two more wholly owned subsidiaries, Clairton By-Products and the Lorain Steel Company, were merged into Carnegie-Illinois as well.
5147097
Thomas M. Carnegie


Thomas Morrison Carnegie (October 2, 1843 – October 19, 1886) was a Scottish-born American industrialist. He was the brother of steel magnate Andrew Carnegie and co-founder of the Edgar Thomson Steel Works (a steel manufacturing company). He was born in Dunfermline, Fife, Scotland, on October 2, 1843. His parents were Will and Margaret Carnegie, and he had a brother, Andrew, who was eight years older. A sister, Ann, had been born in 1840 but died in infancy
2359350
Thomas M. Carnegie


Thomson Steel and less with the Isabella Furnace and Union Iron companies. It was Thomas who suggested to Andrew that the companies be consolidated into a single firm, and that Thomas' stake in the new firm be raised commensurate with his managerial role. His older brother agreed. On April 1, 1888, Andrew Carnegie reorganized his iron and steel businesses into one company, Carnegie Bros. & Co., with Thomas holding 17 percent of the stock. Included in the reorganization were the Lucy and Isabella furnaces, Union Iron Mills, and
2359383
Homestead Steel 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 long, and a line of lake steamships. The works were the site of one of the more serious labour disputes in U.S. history, which became known as the Homestead Strike of 1892. The steel works were first constructed in 1881. Andrew Carnegie, (a Scottish emigrant), bought the 2
10507307
American business history


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. Consolidation came in 1892 through the Carnegie Steel Company. By 1889, American output of steel exceeded that of Britain, and Carnegie owned a large part of it. By 1900, the profits of Carnegie Bros. & Company alone stood at $40,000,000 with $25,000,000 being Carnegie's share. Carnegie's empire grew to include the J. Edgar Thomson Steel
8512931
Andrew Carnegie


the opening of a new steel market. In 1901, Carnegie was 66 years of age and considering retirement. He reformed his enterprises into conventional joint stock corporations as preparation for this. John Pierpont Morgan was a banker and perhaps America's most important financial deal maker. He had observed how efficiently Carnegie produced profits. He envisioned an integrated steel industry that would cut costs, lower prices to consumers, produce in greater quantities and raise wages to workers. To this end, he needed to buy out Carnegie and several other major
1729737
Henry Clay Frick


marrying Adelaide Howard Childs, in 1881, Frick met Andrew Carnegie in New York City while the Fricks were on their honeymoon. This introduction would lead to an eventual partnership between H. C. Frick & Company and Carnegie Steel Company and, eventually, to United States Steel. This partnership ensured that Carnegie's steel mills had adequate supplies of coke. Frick became chairman of the company. Carnegie made multiple attempts to force Frick out of the company they had created by making it appear that the company had nowhere left to go and that
1191179
The labor problem


union officials. It began as a railroad strike but eventually formed riots that lasted four days and killed fifty people. The first strike due to depersonalization by machines was the Homestead Strike in 1892 on the Carnegie Steel Company by the Amalgamated Association of Iron and Steel Workers (AA). This ultimately resulted in the attempted assassination of Henry Clay Frick, Chairman of The Carnegie Steel Company, and a crushing blow in the attempt to unionize steel workers. Another example is the Pullman Strike in 1894, where almost 4,000 workers who were
16151100
John Walker (industrialist)


John Walker (1843–1932) was a prominent iron and steel industrialist in Pittsburgh, Pennsylvania during the early 20th century. He was born in Allegheny, Pennsylvania, now known as Pittsburgh's North Side. His father was a Scottish immigrant. He was a boyhood friend of Andrew Carnegie and Henry Clay Frick; all three of them grew up to be steel industrialists. Walker founded Wilson, Walker & Co. in 1872, a company producing bar iron, railroad car forgings, and rail plates. In 1886, the company was bought
3640837
History of the steel industry (1850–1970)


America from Scotland. Lauder was a leading mechanical engineer who had studied under Lord Kelvin. Lauder devised several new systems for the Carnegie Steel Company including the process for washing and coking dross from coal mines, which resulted in a significant increase in scale, profits, and enterprise value. Lauder would go on to lead the development of the use of steel in armor and armaments for the Carnegie Steel Company, spending significant time at the Krupp factory in Germany in 1886 before returning to build the massive armor plate mill at the Homestead
3304815
Carnegie Steel Company


Henry Clay Frick, his brother Thomas M. Carnegie, his cousin George Lauder, and Henry Phipps Jr., to buy other nearby steel mills. These included the Homestead Steel Works which Carnegie acquired in 1883. The presence of the Allegheny, Monongahela, and Ohio rivers provided transport for the heavy materials associated with steel-making. Each plant was nearby or alongside a river. Carnegie agreed to Frick's subsequent proposal that the various plants and assets be consolidated into one company. This consolidation occurred on July 1, 1892 with the
916278
Private equity


and families. In 1901 J.P. Morgan arguably managed the first leveraged buyout of the Carnegie Steel Company using private equity. Modern era private equity, however, is credited to Georges Doriot, the "father of venture capitalism" with the founding of ARDC and founder of INSEAD, with capital raised from institutional investors, to encourage private sector investments in businesses run by soldiers who were returning from World War II. ARDC is credited with the first major venture capital success story when its 1957 investment of $70,000 in Digital Equipment Corporation (
17621599
William Ellis Corey


William Ellis Corey (1866 - May 11, 1934) was president of the Carnegie Steel Company from 1901 to 1903, and was president of U.S. Steel from 1903 to 1911. He was born in Braddock, Pennsylvania in 1866. In 1883 he married Laura Cook, whom he met when she worked for his family, and they had one son, Allan Corey. In 1906, Laura filed for divorce in Reno, Nevada, charging that William had deserted her in May 1905. Laura was awarded custody of Allan and a
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Philander C. Knox


elite hunting club (see South Fork below), Knox served as a director of the Fifth National Bank of Pittsburgh. With Henry Clay Frick and Andrew Mellon, he was a director of the Pittsburgh National Bank of Commerce. As counsel for the Carnegie Steel Company, Knox took a prominent part in organizing the United States Steel Corporation in 1901. Knox was a member of the South Fork Fishing and Hunting Club, which had a clubhouse upriver of Johnstown, Pennsylvania. It maintained an earthen dam for a lake by the club
3960567
History of the steel industry (1850–1970)


Steel Works that would revolutionize warfare forever. By 1889, the U.S. output of steel exceeded that of Britain, and Andrew Carnegie owned a large part of it. By 1900, the profits of Carnegie Bros. & Company alone stood at $480,000,000 with $225,000,000 being Carnegie's share. 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
3304816
Illinois Steel Company


iron operations were handled in conjunction with Pickands, Brown & Company. The success of Illinois Steel did not go unchecked. The Carnegie Steel Company had a more efficient operation in Pittsburgh, Pennsylvania and sought to force Illinois Steel into receivership. Carnegie sold steel near Chicago at only eighteen dollars a ton, forcing Illinois Steel to sell their products below production cost. By 1896, Illinois Steel had drawn papers to place the company into receivership. Before these papers could be filed, however, Illinois Steel decided to focus on expanding their
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Andrew Carnegie


rival Homestead Steel Works, which included an extensive plant served by tributary coal and iron fields, a 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 in Braddock, (named for John Edgar Thomson, Carnegie's former boss and president
1729735
Mirror Lake Library


The St. Petersburg Public Library (also known as the Mirror Lake Community Library or Carnegie Library) is a Carnegie library built in 1915 in "Beaux-Arts" style. It was one of 10 Florida Carnegie libraries to receive grants awarded by the Carnegie Corporation of New York from 1901 to 1917. Steel magnate and philanthropist Andrew Carnegie provided funding for more than 3,000 Carnegie libraries in the United States, Canada, and Europe. The library is significant to the city's history as the first permanent home of the public library system
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John George Alexander Leishman


throughout his life, Carnegie continued to think of Leishman as one of his "boys" and included Leishman in the official "History of the Carnegie Veterans Association". Leishman occupied the following positions: Vice Chairman, Carnegie Brothers & Company, Ltd.; Vice President and Treasurer, Carnegie Steel Company and President, Carnegie Steel Company. The Leishmans' social and business connections provided entrée into an extraordinarily exclusive circle of sixty-odd families, called the South Fork Fishing and Hunting Club. It was conceived as an idyllic summer colony
18447757
Ocala Carnegie Library


The Ocala Carnegie Library opened in 1916 on Ocklawaha Avenue in Ocala, Florida. It was one of 10 Florida Carnegie libraries to receive grants awarded by the Carnegie Corporation of New York from 1901 to 1917. Steel magnate and philanthropist Andrew Carnegie provided funding for more than 3,000 Carnegie libraries in the United States, Canada, and Europe. Constructed in the Spanish Mission architectural style with a red-clay tile roof, Ocala's first public library was a short distance from what is today the Silver Springs Nature Theme Park. Although the
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Andrew Carnegie


might be hazardous to competition. Spencer feared that an absence of "sympathetic self-restraint" of those with too much power could lead to the ruin of their competitors. He did not think free market competition necessitated competitive warfare. Furthermore, Spencer argued that individuals with superior resources who deliberately used investment schemes to put competitors out of business were committing acts of "commercial murder". Carnegie built his wealth in the steel industry by maintaining an extensively integrated operating system. Carnegie also bought out some regional competitors, and merged with
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Thomas M. Carnegie


formation of limited liability companies, and the Edgar Thomson Steel Company Ltd. was created on October 12, 1874. The company took its name from J. Edgar Thomson, who although not a large investor in the works had a superb reputation as an honest and trustworthy person (an important asset in risky financial times). Over the next several years, Thomas Carnegie generally oversaw the Edgar Thomson Steel Company. His success in this endeavor was summed up by a corporate historian this way: Other historical assessments conclude Thomas had a solid grasp
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Andrew Carnegie


others, usually maintaining the majority shares in the companies. Over the course of twenty years, Carnegie's steel properties grew to include the Edgar Thomson Steel Works, the Lucy Furnace Works, the Union Iron Mills, the Homestead Works, the Keystone Bridge Works, the Hartman Steel Works, the Frick Coke Company, and the Scotia ore mines among many other industry related assets. Furthermore, Carnegie's success was due to his convenient relationship with the railroad industries, which not only relied on steel for track, but were also
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Clayton Mark


steel pipe. In 1900, he built a pipe mill in Evanston, IL, bought another in Ohio in 1901, a zinc mining company in 1906, and in 1916 Mark built a steel mill in Indiana Harbor to supply his own requirements for steel. In 1917, Mark began construction of a planned worker community “Marktown” to house the workers of his steel mill in Indiana Harbor, East Chicago, although it was never completed. Marktown was designed to house 8,000 employees in 200 houses, and the plans included a
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Eagle Grove Public Library


The Eagle Grove Public Library, now the Eagle Grove Historical Museum, is a historical building in Eagle Grove, Iowa, United States. A subscription library was begun in Eagle Grove around 1885, and housed in the post office. The impetus for the first free public library was a 1901 advertising campaign by a Des Moines insurance and investment company. When local citizens bought company's bonds, the company donated 250 books to the town. The books were housed in the Masonic Hall. The Carnegie Corporation of New York accepted Eagle
20251161
History of Pittsburgh


In 1892, a confrontation in the steel industry resulted in 10 deaths (3 detectives, 7 workers) when Carnegie Steel Company's manager Henry Clay Frick sent in Pinkertons to break the Homestead Strike. Labor strife continued into the years of the Great Depression, as workers sought to protect their jobs and improve working conditions. Unions organized H.J. Heinz workers, with the assistance of the Catholic Radical Alliance. Andrew Carnegie, an immigrant from Scotland, a former Pennsylvania Railroad executive turned steel magnate, founded the Carnegie Steel Company. He
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Andrew Mellon


McClintic-Marshall Construction Company and established Crucible Steel Company, the Pittsburgh Coal Company, and the Monongahela River Coal Company; the two coal companies collectively contributed 11 percent of the coal production of the United States. With Frick, Richard Mellon, and William Donner, Mellon co-founded Union Steel Company, which specialized in the production of nails and barbed wire. Though Frick had fallen out with steel magnate and long-time business partner Andrew Carnegie, Mellon received Carnegie's consent to venture into the steel industry. Responding to
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Carnegie Investment Bank


interest of the company. In 1988 Carnegie was taken over by what later became Nordea and remained in their hands until 1994, when a newly formed company, "Carnegie Holding", bought the bank. The new holding company was to 55% owned by British merchant bank Singer & Friedlander and to 45% owned by Carnegie's employees. In 2001, Carnegie Holding company was merged with D. Carnegie & Co, making the latter the parent company in the "Carnegie Group". The company was listed on the Stockholm Stock
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Amalgamated Association of Iron and Steel Workers


against one another. The Homestead strike affected the AA nationwide. The Joliet Iron and Steel Company, the Jones and Laughlin Steel Company, the St. Louis Wire Mill Company, the Edgar Thomson Steel Works and the Duquesne works all refused to sign contracts with the AA while the Homestead labor action lingered. A deepening in 1889 of the Long Depression led most steel companies to seek wage decreases similar to those imposed at Homestead. In 1893, Carnegie defeated an AA union drive at the Duquesne steelworks. In 1885, Carnegie ousted the
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William B. Dickson


position at Carnegie Steel Company and went to New York with Charles M. Schwab, president of United States Steel Corporation, which began business on that date. Dickson moved his family to Montclair, New Jersey, where he bought a home on Llewellyn Road to which he added wings designed by New York architect Frank E. Wallis. Nurtured in the bosom of the Presbyterian Church, by mid-life Dickson had forsworn all "dogmatic religion" and described himself as an "Ethical Christian." Dickson was a founding member of the Montclair
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Henry Phipps Jr.


Henry Phipps Jr. (September 27, 1839 – September 22, 1930) 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. Henry Phipps Jr. was born on September 27, 1839 in Philadelphia, Pennsylvania. He was the son of English born Hannah Frank and Henry Phipps, an English shoemaker who migrated to Philadelphia
13462129
George Lauder (Scottish industrialist)


director of Carnegie Steel, ran both the coke and ore businesses, and was the company's second largest shareholder after Carnegie.. After over thirty years as a senior member of the syndicate, Lauder was seen as the "balance wheel" for his moderate and cautious counsel and the lone "brake" for his often impulsive cousin Carnegie. Partner Daniel Clemson referred to Lauder as a "father figure" to the rest of the company. After the successful sale of Carnegie Steel Corporation to J.P. Morgan, leading to the formation of
16374218
SS Onoko


with a steel deck and steel pilothouse structure. In 1896 she had her boilers replaced with two 12 x 12.5 foot Scotch marine boilers. On May 16, 1896 the "Onoko" collided with the schooner "Mary D. Ayer" in heavy fog on Lake Michigan. Five sailors on the "Ayer" died. The "Onoko"'s wooden spar deck was replaced with steel in 1901. Later that year the principal owners of the "Onoko", the Nicholas Transportation Company, bought out all the lesser stockholders to become
22003918
Carnegie Education Pavilion


Atlanta and designed by Henri Jova. The pavilion is located in Downtown's Hardy Ivy Park, at the curve in Peachtree Street where it intersects with Baker Street. The monument's inscription reads: "The Advancement of Learning." It also features the inscriptions of the names of three famous Western poets "Dante", "Milton", and "Asop", in addition to the library's namesake, "Carnegie". From 1899 to 1901, Andrew Carnegie, the steel magnate and philanthropist from Pittsburgh, donated $
18420534
Edward Manning Bigelow


Peabody; they had no children. In the late 19th century Pittsburgh became a boomtown, known as a "Steel City" for its high concentration of steel mills. Bigelow, a close friend of Andrew Carnegie, joined the city administration and was appointed City Engineer in 1880. The position was transformed in 1888 into Director of Public Works, a position he held for three terms of office, first from 1888 to 1900, again between Jul 1901 and Nov 1901, and then from 1903 to 1906. In 1911 the Governor
16316569
Carnegie Library of Homestead


Pompein brick for construction of the 220 by 132 foot facility. Renovations and modifications have not altered the original physical arrangement of the building, that of three separate facilities- library, music hall and athletic club- under one roof. While Carnegie required communities to use public funds to subsidize the operation of his libraries, Homestead was one of the few exceptions. Operation of the libraries in Braddock, Homestead and Duquesne were originally funded by Carnegie's plants in those towns. After the sale of his business to U.S. Steel in 1901, Carnegie
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Carnegie Steel Company


Steel Works in 1872 at Braddock, Pennsylvania. The Thomson Steel Works began producing rails in 1874. By a combination of low wages, efficient technology infrastructure investment and an efficient organisation, 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. The profits made by the Edgar Thomson Steel Works were enough to let Carnegie and his partners, including
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Andrew Carnegie


Carnegie Steel Company. Carnegie left on a trip to Scotland before the unrest peaked. In doing so, Carnegie left mediation of the dispute in the hands of his associate and partner Henry Clay Frick. Frick was well known in industrial circles for maintaining staunch anti-union sentiment. With the collective bargaining agreement between the union and company expiring at the end of June, Frick and the leaders of the local AA union entered into negotiations in February. With the steel industry doing well and prices higher, the AA asked for a
1729771
History of New York City (1898–1945)


financing programs for the steel, agricultural implements, shipping, and other industries. It also financed much of the British and French war efforts in World War I. John D. Rockefeller, of Standard Oil, expanded from a dominant position in oil to other industries as well as banking. Andrew Carnegie dominated steel until he sold out to Morgan in 1901. After 1900, Rockefeller and Carnegie largely devoted their interest to philanthropy, as to a certain extent did Morgan. With the creation of the Federal Reserve System in 1913, the Federal
9214311
St. Joseph Abbey, Louisiana


Benedict, Louisiana around 1901 and was mostly a wooden structure. In 1907, about five years after its completion the monastery was completely destroyed by fire. A new monastery was constructed out of steel and brick that was constructed thanks to the Fabacher family, owners of the Jackson brewery in New Orleans, and by Andrew Carnegie, who donated a shipment of steel. The monks' individual talents, training, and past professional experience prior to taking monastic vows included architecture, construction and farming, and served them well. In the
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Lawrence C. Phipps


Lawrence Cowle Phipps (August 30, 1862 – March 1, 1958) was a United States Senator representing Colorado from 1919 until 1931. Lawrence Cowle Phipps was born on August 30, 1862 in Amity, Pennsylvania a son of William Henry Phipps and Agnes McCall. He grew up in Pittsburgh, Pennsylvania where he joined the Carnegie Steel Company as a clerk. His uncle, Henry Phipps, was the second largest shareholder in the company. Lawrence Phipps eventually advanced to first vice president. He retired in 1901 and moved to Denver
16452485
Phipps family


The Phipps family of the United States is a prominent American family that descends from Henry Phipps Jr. (1839–1930), a businessman and philanthropist. His father was an English shoemaker who immigrated in the early part of the 19th century to Philadelphia, Pennsylvania, before settling in Pittsburgh. Phipps grew up with Andrew Carnegie as a friend and neighbor. As an adult, he was Carnegie's business partner in the Carnegie Steel Company and became a very wealthy man. He was the company's second-largest shareholder and also invested in
5514919
John Walker (industrialist)


by Carnegie, Phipps & Company and Walker became chairman of the board. As a director of Frick Coke Co., he sided with Frick over Carnegie in their clash to control American steel production. Carnegie offered Walker a $3,000,000 share of Carnegie Steel to change sides; Walker refused to double-cross his friend Frick. Walker retired in 1888. Walker lived in a mansion on Western Avenue in Pittsburgh's North Side neighborhood. At Walker's death in 1932, he was one of the last surviving steel masters in Pittsburgh.
3640838
Continental Steel Corporation


The Continental Steel Corporation was United States steel producer from 1927 until 1986. The company was created on June 21, 1927 through the merger of the Kokomo Steel and Wire Company (founded in Kokomo, Indiana in 1901) with the Superior Sheet Steel Company of Canton, Ohio, and the Chapman Price Steel Company of Indianapolis. Among the original eleven directors was John E. Fredrick, who had been an organizer of the Kokomo Fence Machine Company in 1896 and had served on the board of directors of the Kokomo Steel and Wire Company
3647090
Albert D'Oench


for the Carnegie Library in Sandusky, Ohio (1901); Germania Life Insurance Company Building (1910); Guardian Life Insurance Company building; the William R. Grace Company building addition; and Richard Morris Hunt's New York Tribune Building. The Carnegie Library and the Germania Life Insurance Building are on the National Register of Historic Places. In January 1901, D'Oench married Alice Grace Holloway, whose father, William Russell Grace, was the founder of W. R. Grace and Company and a mayor of New York City. They had a
9214995
Bellefonte Furnace


capitalists to invest in and restart the furnace. Gephart assumed the presidency of the new Bellefonte Furnace Company, which owned the furnace and the ore leases at Mattern Bank and Red Bank. Furthermore, Gephart revealed that the company had bought the large ore deposits at Scotia from Carnegie Steel to augment the furnace's ore reserves. Gephart's Central Railroad of Pennsylvania was to build a trestle across Spring Creek to reach the plant. John Reilly was retained as vice president, and Tom Shoemaker was one of the directors. The furnace was
11052692
U.S. Steel


, or be reinvested in additional shares of U.S. Steel common stock. U. S. Steel maintained the labor policies of Andrew Carnegie, which called for low wages and opposition to unionization. The Amalgamated Association of Iron and Steel Workers union that represented workers at the Homestead, Pennsylvania, plant was, for many years, broken after a violent strike in 1892. U.S. Steel defeated another strike in 1901, the year it was founded. U.S. Steel built the city of Gary, Indiana in 1906, and 100 years later it remained the
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