The Use of Horizontal and Vertical Integration by Carnegie in the Industrialization Period

Andrew Carnegie was one of the wealthiest men in America but his wealth didn’t come without hard work and dedication. Carnegie was born in “Dunfermline, Scotland on November 25, 1835” (Tyle). According to Laura B. Tyle, the invention of the weaving machine unfortunately pushed Carnegie’s family in to poverty “In 1848, Carnegie’s family left Scotland and moved to Allegheny City, Pennsylvania, where his father and eventually him worked in a cotton factory” (Tyle). After leaving the cotton factory “Carnegie became a messenger boy for the Pittsburgh telegraph office and eventually made his way up to telegraph operator” (Tyle). According to Laura B. Tyle “Thomas A. Scott, the superintendent of the western division of the Pennsylvania Railroad, made Carnegie his secretary at the age of eighteen.” Later, Carnegie took over Scott’s position of the railroad. Furthermore Carnegie “began to see that steel was going to replace iron and by 1873 he organized a steel rail company” (Tyle). According to Laura B. Tyle he continued to build his company when he “cut prices, drove out competitors,

Without Carnegie, the steel industry, and the second industrial revolution in general, would never have progressed as much as it did. Carnegie did what was necessary to make the steel industry more productive and more efficient, for less money. He was a shrewd, ruthless, businessman who’s aggressiveness made the steel, railroad, and oil industries so economically successful. These characteristics, though not always looked upon as nice or sympathetic, were sometimes necessary. He had paid his time as a poor factory boy, and now it was his turn to live comfortably and aid others less fortunate to work towards the same success.

The Carnegie Steel Company was a successful factory, which employed many hundred of workers. Andrew Carnegie, who was the owner of the company, wanted a large successful business, which he had achieved already, but he was always looking for ways to save and make more money. By 1892, unions had been formed

As young immigrant child living in the rural ruins Andrew Carnegie was forced to not receive education and held accountable for his family´s well being. One of his early jobs was a telegrapher this job gave him the experience that led him to becoming Thomas Scott´s protégé in the railroad business. By this, Carnegie obtained many knowledge from the desiscions Scott made, which eventually help Carnegie create the sensational Steel Industry. Although, Carnegie´s story is one of the most admired through-out this era, however in his early life things weren’t effortless. The responsibility taken by him during his childhood was colossal having to work everyday to sustain a single mother raised family is not a piece of cake. Similiarly,the average life a coal miner entails how poor children had to appear at the coal mine everyday risking their life each second spent in the fuming mines, and all for a couple of cents a day. This caused a an enormous impact on Carnegie´s perspective over wealth, he believed if people wanted to overcome

Many people at the time were living in poverty and there weren’t enough jobs that had sufficient pay to support a family. The steel industry was one that had the highest earning wages. The average daily wage at the time for iron and steel workers were $1.87, this is far above other industries that had a smaller amount of pay. Others can argue that because of the bad working conditions workers faced in the steel industries, Carnegie shouldn’t be considered a hero. But isn’t the goal of a business to create more jobs? Carnegie believed that it was proper to have completion between the rich and the poor because if there wasn’t, there would be no individuals capable enough to provide such jobs to further expand the essential needs of laborer and those of the economy (Doc 3). When Carnegie sold the Carnegie Steel company to J.P Morgan for $400 Million, the newly named company (U.S Steel) created numerous amounts of jobs employing 168,000 people.

Andrew Carnegie was known to be the most hypocritical of all robber barons. He supported worker’s rights but couldn’t uphold his own moral code. Under his watch, his company cut worker’s wages and extended hours. Carnegie caused an uprise of his own workers and created the Homestead Strike of 1892. He approved that his company should hire men to intimidate the workers into submission, which sparked violence and ultimately resulted in many people getting killed. Andrew Carnegie used his wealth and influence to his benefit, paying a replacement to fight for him to avoid getting drafted in the Civil War. Andrew Carnegie was a powerful robber baron that used vertical integration to control the steel industry.

     Let us first look at Mr. Andrew Carnegie. Carnegie was a mogul in the steel industry. Carnegie

Perhaps the most controversial of Andrew Carnegie’s qualities is his belief in Social Darwinism. The English philosopher Herbert Spencer convinced Carnegie that it wasn’t bad to be successful. It was “survival of the fittest” in the business world and there was no reason for Andrew Carnegie to feel guilty for obtaining more wealth. Throughout Carnegie’s life, he displayed his firm belief in the certainty of competition. In fact, he was afraid of competition and did all he could to obstruct or completely remove it when it came to his

According to Les Standiford from scotsman.com, “Carnegie had his plant manager post a notice that the works would close for an indefinite period and that 1,600 men would be put out of work with the stated reason being plant renovation. But Carnegie had resolved that the real purpose was to drive out the unions, only non-union men would be rehired when they reopened the plant. By February of 1885, with the men facing starvation and freezing temperatures and no money to buy food or coal, they agreed to come back in under individual contracts, their wages decreased by up to 33%. The union was crushed forever at the plant."[3]. This quote directly shows the ruthless nature Carnegie had when it came to his business, despite his good views on life and spending money, and even agreeing with workers unions, he does not want them to get into his factories and increase the prices it cost him to pay is workers. He was willing to put off thousands of workers in the dead of winter with them unable to afford food or proper heating due to the lack of work, just so that he could prevent costs of labor increasing. Another similar case was when Carnegie attempted to avoid harming his public image while dealing with protests, according to learningtogive.net, “While expanding his steel empire, Carnegie ran into a series of labor relation problems with Homestead Works, a rival steel mill with the most modern equipment and technology available that he had purchased. The problems began when the workers organized a strike. Carnegie instructed his associate, Howard Frick, to handle the situation however he deemed necessary. Because Carnegie was seen as a friend of the worker and usually handled similar situations by

When Carnegie decided to go into business for himself, he chose the steel industry, but his success came at the expense of his workers. He decided he should own the entire supply chain from iron mines and coal fields (to supply his raw materials) to ships and railroads (to deliver his products). He expanded rapidly; not

Besides the people who thought Andrew Carnegie was a captain of industry others thought the opposite. He was a rich robber baron who was a “Robbin’ Hood, who would steal from the working man to give to himself. He gave wealth to the poor was true, but it was not his own money, it was the money from the left over low wages of the workers while keeping his own. People believed that he was a robber baron giving away money that was not really his. This made him a robber baron even though having the captain of industry

It illustrated the poor conditions of labour, which contributed to industrialization and a labour union, which took care of fighting for benefits and the working conditions of these child labourers. Andrew Carnegie’s article (as seen in document D) proposes the idea of the rich using their wealth to improve society, as he believed that the fact that a person was rich, showed that he was more fit than others. Carnegie acknowledged that the living conditions were poor and wanted to help change that. This introduced industrialization into the Gilded Age. In the late 19th Century, Carnegie led the enormous expansion of the American steel

Andrew Carnegie became known as one of America’s “builders”, because of his efforts that fueled the economy. Carnegie became such a wealthy man because of the vertical combination strategy he used, which the idea was first used by Gustavus Swift. With that strategy, he bought railroad companies and iron mines. Carnegie searched for ways to make better products cheaper, then he incorporated new machine and techniques that enabled him to track precise costs. He made any wise choice that would help him on the road to

He used vertical integration to dominate the steel industry. During the late 1800s, the Carnegie Steel Company was most profitable industrial enterprise in the world. Even though Carnegie did not invent steel and the processes that he used were brought over from other places of the world, including Europe, it is an exceptional popular opinion that Carnegie invented the American Steel Industry. Carnegie was able to create steel at a fair price which was beneficial to America at the time. Countless bridges and buildings were capable of being constructed. This behooved the people in that it led to an economic boom which allowed more jobs

Andrew Carnegie was a firm believer in idea of individualism. That everyman must work and rise on his own ambition alone, that each man for themselves. In other word, he did not believe in the communist thought of working