U. S. Steel

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

Since steel is a commodity it leads to very volatile prices and can change quite frequently due to demand. By looking at Exhibit 1, you can see how the average price per ton decreased form $425 per ton in 2000 to $354 per ton in 2001. This exhibit shows how many tons of steel Nucor sold during certain years from 1970 to 2006. It is interesting to see that Nucor’s net income was fairly low during the years of 2000-2002, but increased to $1,121.5 million. This is because of Nucor’s many acquisitions during the low period. Just a few years later in 2004, the price of steel was back up to $595 per ton.

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

Andrew Carnegie built his fortune out of nothing, clawing his way to the top and making his fortune by seeing the expanding usage of steel and quickly jumping on the opportunity, becoming one of the first and biggest steel producers in America, and later the world[2]. With this massive corporation

Carnegie earned a lot of money from his investments and quit his job with the railroad to focus on his business affairs, which included frequent traveling to Europe to sell railroad bonds. On one trip, Andrew Carnegie met the English inventor, Sir Henry Bessemer, who had invented a new process for making high quality steel efficiently and cheaply. After meeting Bessemer, Carnegie decided to concentrate his investments in the steel industry. He opened a steel company in Pittsburgh and adapted his steel mills to use the Bessemer process. The process allowed Andrew Carnegie to manufacture steel efficiently and cheaply. To increase manufacturing efficiency even further, Carnegie began the vertical and horizontal integration of the steel industry, which allowed Carnegie Steel Company to save money as it expanded. He quickly became one of the richest people in history due to his hard work before the creation of Carnegie Steel and during its operation. Andrew Carnegie sold Carnegie Steel Company to J.P. Morgan. Carnegie became a philanthropist in his retirement and gave away $350 million, which was about 90% of his fortune. He built

Two of the most well-known and successful companies of the Industrial Revolution were the Standard Oil Company, and the Carnegie Steel Company. Both were exceedingly successful in virtually removing all competition in their respective fields of business and controlling almost all of the production capacity of their respective products in the United States. Their founders, John D. Rockefeller of the Standard Oil Co., and Andrew Carnegie of the Carnegie Steel Co. conducted business practices that were different from one another in how they dealt with competition as seen in the undercutting or cheap type

" Pittsburgh's strategic location and wealth of natural resources spurred its commercial and industrial growth in the 19th century. A blast furnace, erected by George Anschutz in 1792, was the forerunner of the iron and steel industry that for more than a century was the city's economic mainstay; by 1850 it was known as the "Iron City." The Pennsylvania Canal and the Portage Railroad, both completed in 1834, opened vital markets for trade and shipping. After the American Civil War, great numbers of European immigrants swelled Pittsburgh's population, and industrial magnates such as Andrew Carnegie, Henry Clay Frick, and Thomas Mellon built their steel empires there. The city became the focus of historic friction between labor and management, and the American Federation of Labor was born there in 1881."

In 1892, Frick realized there was no centralized management for the company and decided to combine everything to form the Carnegie Steel Company. It was worth $25 million and was the largest steel company in the world. Frick became greedy and wanted to increase profits, so he lowered employee wages. Workers began to strike, so Frick hired 300 strikebreakers to resolve the situation. There was a battle that lasted a day and 60 men were wounded.

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

“Chicago and the nation entered the Progressive era. …The 1901 steel strike ended in defeat for the union, and the once powerful Amalgamated slipped into irrelevancy. Chicago’s steel mills remained unorganized, yet U.S steel tried to sidestep Chicago radicalism by developing a whole new town just across the border in Indiana. Gary, Indiana became the center of the region’s steel industry. Not overtly planned in the tradition of Pullman but nonetheless a company town…”

to sell his company. March 2, 1901, the United States Steel Corporation was formed and

Even in spite of the economic recession in 1991, Nucor still appeared to be one of the fastest growing steel companies in America, even considering the spending levels regarding disposable income among Americans. This is especially true since September 11, attacks, because economic levels in America have tended to exhibit a slight disability. After the attacks on 9-11 markets, as well as the overall financial climate of the United States took on immediate hits. Yet, after President Bush’s tax cuts made in 2002, the country rebounded from a mild recession which dated back to the Clinton administration and has since sought to recover. The steel industry worldwide was mired in one of its most unprofitable periods ever when 9-11 hit. The recovery from the recession, as well as an attempt to pull through current financial hard times due to the war in Iraq have added extra strains on Americans and their ability to spend, which in turn affects the steel industry.

As a result, the union of United Steelworkers of America would launch a multi-million dollar marketing campaign denoted as “Stand Up for Steel,” while also attempting to wield influence through The Congress and executive branch. Here the group pushed for import quotas and the implementation of a Section 201 arrangement. Despite this, the U.S. steel industry would subtly oppose the union positions vis-à-vis a Section 201 and quotas, before eventually capitulating. Particularly in the case of the former, the industry feared the risks a Section 201 could bring.