Early Life
The man who was to become one of the wealthiest individuals of his time came from rather inauspicious beginnings. Andrew Carnegie – known as ‘Andra’ to his family – was born in 1835 in Dunfermline, Scotland, to parents who were unable to afford a midwife to attend the birth (Nasaw, 2006). In 1848 the Carnegies immigrated to the United States of America, traveling steerage, on a ship that took 50 days to get across the Atlantic (Krass, 2002). Once in America, they traveled to Allegheny City, Pennsylvania - now a part of Pittsburgh- where Carnegie’s mother had family (Nasaw).
Carnegie’s formal education was minimal – he started school in Scotland at the age of eight; and by the age of 13 he had immigrated to the United States and was working full-time to help support his family (Krass, 2002). Carnegie got his first job as a boy as a strike-breaking ‘scab’ at the Anchor Cotton Mills, after signing a contract agreeing to work illegal 12-hour work days (Nasaw, 2006), for which he earned $1.20 a week (Krass). Fortunately, this first job proved to be temporary, and Carnegie soon moved on to other jobs. As a teenager he worked in a bobbin factory and as a telegraph messenger boy, and in 1853 he entered the railroad business at the age of 18 by taking a job with the Pennsylvania Railroad (Carnegie, 2006). Here, there were many opportunities for promotion, and by the age of 24 was a president of a division of the railroad company (Krass, 2002).
The man who was to become one of the wealthiest individuals of his time came from rather inauspicious beginnings. Andrew Carnegie – known as ‘Andra’ to his family – was born in 1835 in Dunfermline, Scotland, to parents who were unable to afford a midwife to attend the birth (Nasaw, 2006). In 1848 the Carnegies immigrated to the United States of America, traveling steerage, on a ship that took 50 days to get across the Atlantic (Krass, 2002). Once in America, they traveled to Allegheny City, Pennsylvania - now a part of Pittsburgh- where Carnegie’s mother had family (Nasaw).
Carnegie’s formal education was minimal – he started school in Scotland at the age of eight; and by the age of 13 he had immigrated to the United States and was working full-time to help support his family (Krass, 2002). Carnegie got his first job as a boy as a strike-breaking ‘scab’ at the Anchor Cotton Mills, after signing a contract agreeing to work illegal 12-hour work days (Nasaw, 2006), for which he earned $1.20 a week (Krass). Fortunately, this first job proved to be temporary, and Carnegie soon moved on to other jobs. As a teenager he worked in a bobbin factory and as a telegraph messenger boy, and in 1853 he entered the railroad business at the age of 18 by taking a job with the Pennsylvania Railroad (Carnegie, 2006). Here, there were many opportunities for promotion, and by the age of 24 was a president of a division of the railroad company (Krass, 2002).
Business Tycoon
When the Civil War broke out during 1861, the Union Army’s dependence on rail made the Pennsylvania Railroad a vital strategic priority (Nasaw, 2006), and Carnegie’s work with the railroad contributed to the war effort. During the war, Carnegie made three considerable investments that would later prove to be very profitable – oil, bridge-building, and iron (Krass, 2002). Combined, these three investments made Carnegie a wealthy man and allowed him to further invest. After resigning from the Pennsylvania Railroad in 1865, Carnegie went into the iron business, which proved to be successful (Krass, 2002). Soon after, in the early 1870s, Carnegie turned his attention to steel manufacturing, which was still a new industry in the United States at the time (Nasaw). Carnegie’s steel mills proved to be extremely profitable, and it was in the steel industry is where Carnegie’s real fortune was made. In 1901, ready to retire and supported by his partners, Carnegie sold the Carnegie Steel Company and its associated mills to J.P. Morgan for the price of $480 million, out of which a $225,639,000 share went to Carnegie in gold bonds and cash (Krass), the equivalent to nearly $120 billion today (Nasaw). After sealing the deal with Carnegie, Morgan reportedly shook Carnegie’s hand and congratulated him on being the richest man in the world (Nasaw).
When the Civil War broke out during 1861, the Union Army’s dependence on rail made the Pennsylvania Railroad a vital strategic priority (Nasaw, 2006), and Carnegie’s work with the railroad contributed to the war effort. During the war, Carnegie made three considerable investments that would later prove to be very profitable – oil, bridge-building, and iron (Krass, 2002). Combined, these three investments made Carnegie a wealthy man and allowed him to further invest. After resigning from the Pennsylvania Railroad in 1865, Carnegie went into the iron business, which proved to be successful (Krass, 2002). Soon after, in the early 1870s, Carnegie turned his attention to steel manufacturing, which was still a new industry in the United States at the time (Nasaw). Carnegie’s steel mills proved to be extremely profitable, and it was in the steel industry is where Carnegie’s real fortune was made. In 1901, ready to retire and supported by his partners, Carnegie sold the Carnegie Steel Company and its associated mills to J.P. Morgan for the price of $480 million, out of which a $225,639,000 share went to Carnegie in gold bonds and cash (Krass), the equivalent to nearly $120 billion today (Nasaw). After sealing the deal with Carnegie, Morgan reportedly shook Carnegie’s hand and congratulated him on being the richest man in the world (Nasaw).
Later Life
In 1887, Carnegie married Louise Whitfield. The marriage was a successful one; Carnegie (2006) wrote in his autobiography of his marriage with her, “My life has been made so happy by her that I cannot imagine myself living without her guardianship” (p. 188). The couple’s daughter and only child, Margaret Carnegie – called Baba by her parents – was born in 1897. Carnegie retired from the steel business in 1901; having published The Gospel of Wealth, in which he lays out his beliefs on philanthropy, he felt he had to act on them (Carnegie, 2006).
As he got older Carnegie relinquished to a great extent his previously hard-core capitalist views, and spoke out about the steel tariff, environmental concerns related to the iron and steel industries, and worker’s rights; the birth of his daughter seems to have had a softening effect on him (Krass, 2002). It was in his old age that Carnegie also started focusing exclusively on his philanthropy plans; he said in his autobiography that after retirement, “I resolved to stop accumulating and begin the infinitely more serious and difficult task of wise distribution” (p. 221). Libraries were not the only institution to benefit from Carnegie’s philanthropy later in life. Hospitals, universities, parks, and churches also received money (Maurizi, 2001). Carnegie also funded, and campaigned tirelessly for, his other pet project of promoting international peace efforts, a cause that was actually acting against his own self-interest as his company profited greatly off of manufacturing steel for the U.S. Navy (Nasaw, 2006). Unfortunately, Carnegie died during World War I, so he was not able to see his dream of world peace fulfilled despite his efforts (Nasaw). In 1911 Carnegie founded the Carnegie Corporation of New York to formally oversee philanthropic projects after his death.
By the end of his life, Carnegie had given away over $350 million to his philanthropic projects and causes (Nasaw), or more than 90% of the wealth he had accumulated in his lifetime (Maurizi, 2001). The overall sum of his grants and donations would be in the tens of billions today (Nasaw). Andrew Carnegie died of bronchial pneumonia on August 11th, 1919, at the age of 83. Ultimately, he succeed in his lifetime goal of giving away all of his fortune – after his philanthropic endeavors and legacies left to family, friends and employees, there was around $20 million left in Carnegie’s estate when he died, the entirety of which was bequeathed to the Carnegie Corporation to fund future philanthropic projects (Nasaw).
In 1887, Carnegie married Louise Whitfield. The marriage was a successful one; Carnegie (2006) wrote in his autobiography of his marriage with her, “My life has been made so happy by her that I cannot imagine myself living without her guardianship” (p. 188). The couple’s daughter and only child, Margaret Carnegie – called Baba by her parents – was born in 1897. Carnegie retired from the steel business in 1901; having published The Gospel of Wealth, in which he lays out his beliefs on philanthropy, he felt he had to act on them (Carnegie, 2006).
As he got older Carnegie relinquished to a great extent his previously hard-core capitalist views, and spoke out about the steel tariff, environmental concerns related to the iron and steel industries, and worker’s rights; the birth of his daughter seems to have had a softening effect on him (Krass, 2002). It was in his old age that Carnegie also started focusing exclusively on his philanthropy plans; he said in his autobiography that after retirement, “I resolved to stop accumulating and begin the infinitely more serious and difficult task of wise distribution” (p. 221). Libraries were not the only institution to benefit from Carnegie’s philanthropy later in life. Hospitals, universities, parks, and churches also received money (Maurizi, 2001). Carnegie also funded, and campaigned tirelessly for, his other pet project of promoting international peace efforts, a cause that was actually acting against his own self-interest as his company profited greatly off of manufacturing steel for the U.S. Navy (Nasaw, 2006). Unfortunately, Carnegie died during World War I, so he was not able to see his dream of world peace fulfilled despite his efforts (Nasaw). In 1911 Carnegie founded the Carnegie Corporation of New York to formally oversee philanthropic projects after his death.
By the end of his life, Carnegie had given away over $350 million to his philanthropic projects and causes (Nasaw), or more than 90% of the wealth he had accumulated in his lifetime (Maurizi, 2001). The overall sum of his grants and donations would be in the tens of billions today (Nasaw). Andrew Carnegie died of bronchial pneumonia on August 11th, 1919, at the age of 83. Ultimately, he succeed in his lifetime goal of giving away all of his fortune – after his philanthropic endeavors and legacies left to family, friends and employees, there was around $20 million left in Carnegie’s estate when he died, the entirety of which was bequeathed to the Carnegie Corporation to fund future philanthropic projects (Nasaw).