andrew_carnegie by pengtt

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									Andrew Carnegie

    The original “Man of Steel.”
The boom in the oil and steel industry
after the Civil War turned the U.S. into
a highly industrialized nation.

Andrew Carnegie was a Scottish-born
American industrialist who led the
enormous expansion of the American
steel industry in the late 19th century.
Carnegie worked for the Pennsylvania
Railroad and made some wise
investments. By 1865, Carnegie was
making $50,000 a year.

During trips to Britain he met steel
makers and foresaw the future
demand for steel in the United States.
In the 1870s Carnegie built the first steel
plants in the United States to use the new
Bessemer steel making process, borrowed
from Britain.              First cheap method of making
                               steel, invented by Henry
                               Bessemer in England in 1856.
                               It has since been superseded
                               by more efficient steel-making
                               processes, such as the basic-
                               oyxgen process. In the
                               Bessemer process compressed
                               air is blown into the bottom of
                               a converter, a furnace shaped
                               like a cement mixer, containing
                               molten pig iron. The excess
                               carbon in the iron burns out,
                               other impurities form a slag,
                               and the furnace is emptied by
 Cutting costs was at the heart of
 Carnegie’s business method.

 Cut workers wages as much as
  you can without them rebelling.
 Increase work hours.

 Incorporate new technologies.
Carnegie was known for reducing costs
through vertical integration of the steel

Vertical integration occurs when a
business expands its control over other
businesses that are part of its overall
manufacturing process. For example, a
steel business would be vertically
integrated if it owned or controlled iron
mines, coal mines, railroads, etc.
  Andrew Carnegie was also one of the most
  important philanthropists of his era.

  philanthropy – an active effort to promote
  human welfare.
                                142 libraries were constructed in
                                California through Carnegie grants.

Carnegie Hall – New York City

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