Ethics

This book by Peter Krass is a fascinating biography which reconstructs the life of a legendary and philanthropist industrialist by the name Andrew Carnegie. In this book Krass has recounted the life of one of the major figures in the history of Americans. Andrew Carnegie is described as a ruthless man who made a fortune in the steel industry and ultimately gave away most of it. By the time Carnegie died he had given out almost all of his money. He was the first of the super rich to become famous for his giving and trying to justify himself as well as building a philosophy around it. (Krass)

In this book Krass has tried to reconstruct the complicated life of this titan who was able to rise in power in the Americas gilded age. The author has also explored the contradictions of Andrew Carnegie who rose from lowly bobbin boy to build the most profitable as well as biggest steel company in the world. The author has also examined how Andrew Carnegie became the greatest philanthropists ever known and how he earned a notorious reputation which history has yet to reconcile with his remarkable achievements. (Krass)

According to the author Carnegie came from humble origins in Scotland. Together with his family they migrated to United States when he was still a child.  In the United States he got his first job as a messenger boy but he later climbed ranks and worked as a telegraph clerk, railroad executive and steel magnate. He first built Pittsburghs Carnegie Steel Company which was later merged with Elbert Garys Federal Steel Company. It was also merged with other smaller companies and they all together created the U.S Steel.  During his time a businessman he had made a fortune and through this he turned to philanthropy and also had interests in education. This is how he founded Carnegie Museums of Pittsburgh, Carnegie Mellon University, Carnegie Corporation of New York and Carnegie Endowment of International Peace. (Krass)

As stipulated by the author, he started as a telegrapher and by 1860s through his hard work he had already made investments in railroad sleeping cars, railroads, oil derricks and bridges. Carnegie also built his wealth further by selling bond raising money for the America enterprise in Europe. Most of his wealth was earned through the steel industry. It is believed it is the money that he had already made in the steel industry that made him to engage in steel business and thus opening his first steel company in 1870. This step is what cemented his name as one of the captains of industry.  By the 1890s Carnegies Steel Company was the largest and also the most profitable industrial enterprise in the whole world. In 1901 he sold the company to J.P Morgan who transformed it into U.S Steel. (Krass)

According to Krass, Carnegie as an industrialist in his steel business made a fortune and controlled the most extensive integrated steel and iron operations which were ever owned by an individual in the United States. In his reign he made two great innovations. The first was the efficient and at the same time cheap mass production of steel rails for railroad lines. The second was the vertical integration of all the raw materials suppliers. Carnegie Steel Company in the late 1880s was the largest manufacturer of steel rails, pig iron, and coke. It had the capacity to produce 2000 tons of pig metal per day. This was a result of the innovations that he had made which were very successful.  (Krass)

In 1888 he bought his rival Homestead Steel Works which was inclusive of an extensive plant served by tributary iron fields and coal, a line of lake steamships and a 685 km railway. In 1889 steel production in the United States had already exceed that of United Kingdom and Carnegie owned a large part of it. Carnegie went ahead and even merged with J. Edgar Thomson Steel Works which was named for Carnegies former boss and Pennsylvania Railroad president. He later merged with the Lucy Furnaces, the Union Iron Mills, the Hartman Steel works, Pittsburgh Bessemer Steel Works, the Frick Coke Company, Keystone Bridge Works and Scotia ore mines. Through Keystone Carnegie supplied steel for and also owned shares in the Land mark Eads Bridge project across the Mississippi river a project which was an important proof for steel technology. This project marked the opening of a new steel market. (Krass)

Carnegie after selling his company in 1901 spent the remaining years of his life as a philanthropist. After this year Carnegie turned the public attention from the shrewd business acumen to the public spirited way where he devoted himself to utilizing his fortune on philanthropic projects. In articles such as Gospel of Wealth and Triumphant Democracy, Carnegie gave his views about social subjects.  In the article Gospel of Wealth, he referred to people like him as those people who rose to the top as a result of superiority.  He also wrote that such people used their wealth as a trustee for the better society.  (Krass)

He devoted himself to providing capital from what he had made in steel industry for purposes of public interest, educational and social advancement. He was a supporter for spelling reform movement which was meant to aid English spread. He also funded the establishment of public libraries throughout United Kingdom, United States and other English speaking countries. In total Carnegie had funded the establishment of about 3000 libraries. He funded the establishment of Carnegie Institute of Technology at Pittsburgh and Carnegie Institution in Washington. He also established large pension funds for his former employees at Homestead in 1901 and for American college professors in 1905. He also funded the construction of 7000 church organs as a result of his interest for music. He also founded Carnegie hero fund for the United States which was alter established in other countries such as Sweden, Norway, Denmark, Belgium, Canada, Italy, France and United Kingdom. (Krass)

Carnegie in this book by Krass is portrayed as a ruthless businessman. He is portrayed as a ruthless employer. The author argues that he used to pay his employees badly even though he does not provide support details to justify his claim. The author also asserts that he used to make his employees to work for 56 hours a week in good times and 84 hours a week in bad times. He also illustrates a strike which occurred at Homestead which lasted for 143 days.  The workers had gone on strike after they had demanded an increase of their salary with 30 percent after the companys profits had increased by 60 percent. Some workers even demanded for 60 percent. This led to the management to lock the union out. There were some workers who had not gone on strike and the management brought in those thousands of strikebreakers to work when they were safeguarded by Pinkerton agents. Afterwards operations in the company resumed but with non union immigrant employees who replaced the Homestead plant workers. The author has also portrayed serious accidents which occurred in the steel mills for instance the case of Jones. The author also describes the working conditions in steel industry as unsafe. Therefore those who worked in Carnegie steel company were always at risk. He also asserts that several died as a result of unsafe conditions even though it cannot be concluded so because the life expectancy in those days was 37 years and it even presumably lower in countries where the immigrant workers had come from. (Krass)

Even though Carnegie can be described as ruthless, his ruthless in business can be reconciled with his beneficence. Carnegie after making a fortune in business he in fact sold it to another person so that even other s can be able to have what he had. He also dedicated much of his wealth and time in doing philanthropic activities. Thus his riches helped the society in a very great way. He established many libraries which are still in use and thus he helped the society. He also established educational institutions through which the current generation has gained its knowledge. Therefore even though he was ruthless in his business practice what he gave back to the society was a more beneficial than what he had gained. This is because even after his death what he established still remains helpful to the society.