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Carnegie's Investments During The Progressive Era

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1. During Carnegie’s experience as an “apprentice manager” at the Pennsylvania Railroad, he gained many skills while being a manager. He learned about the economic principles as he got familiar with the finances and accounting, and paved strong personal relationships, such as Thomas A. Scott, that taught him how to become a successful manager, capitalist, and entrepreneur. Through learning about accounting, Carnegie was able to pinpoint how to make decisions such as increasing or decreasing rates and making or postponing repairs. There was also another important concept he learned, the formula for profitable operation of a capital intensive business. The formula was to learn the costs of what is being made and reduce it as much as possible, then once that price is figured out you lower prices to attract a larger volume of commerce. All these lessons lead him to finding ways at saving the…show more content…
Tomas A. Scott, an administrator of the PA RR helped Carnegie with many investments. Many of the investments were facilitated by Scott and the PA RR president, John Edgar Thomson, which involved insider trading in companies that the PA RR did business with, or bribes made by contracting parties. Scott helped Carnegie with his first investment of $500 in the Adams Express, an inside trade guaranteed to bring in a profit. Carnegie also gained a few shares in Theodore Tuttle Woodruff's sleeping car company, as a reward for holding shares as a bribe. Carnegie would then invest his profits in other investments such as iron, bridges, and rails. Carnegie accrued capital that would help create the foundation for his own steel company. Throughout his career, he took advantage of his association with Thomson and Scott, as he established businesses that supplied rails and bridges to their railroads, he thanked the two men with an offer of stake in his enterprises. Carnegie’s financial wheeling and dealing would bring money and new business to not only himself but those associated to
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