Changes

==Building the steel industry==

==Building the steel industry==

In the 36 years that followed his taking over the Kloman Co., Carnegie's career could serve as a summary of the industrial development of the nation in this period. In 1873, on one of his frequent trips to Great Britain, he met Henry Bessemer, inventor of the "Bessemer process," and became convinced that the industrial future lay in steel. His key decision investing $250,000 in the Edgar Thomson Steel Company, formed in 1874 with a capital of $1 million. The Bessemer plant at the company's site at Braddock's Field, near Pittsburgh was designed to manufacture high quality steel rails. Carnegie's huge success with this venture was due first to his commitment to technological change and second to his previous experience with the railroads. He wanted to have the most modern equipment available and was willing, whenever necessary, to scrap expensive machinery after only a short time if better technology could be had. The administrative structure he put together at the Edgar Thomson works was similar to the one he had worked in at the Pennsylvania Railroad. He appointed the country's most talented steel engineer, Captain William Jones (1839-1889), as general superintendent to oversee the daily work of the managers in charge of the blast furnaces. Jones had invented of several basic tools, such as the "Jones Mixer."  Carnegie frequently pressured Jones to decrease employee wages, only to have Jones fearlessly reiterate the efficacy of enlightened labor policy.<ref> Tom Gage, "'Hands-on, All-over': Captain Bill Jones." ''Pittsburgh History'' 1997-1998 80(4): 148-169. Issn: 1069-4706 </ref>   

In the 36 years that followed his taking over the Kloman Co., Carnegie's career could serve as a summary of the industrial development of the nation in this period. In 1873, on one of his frequent trips to Great Britain, he met Henry Bessemer, inventor of the "Bessemer process," and became convinced that the industrial future lay in steel. His key decision investing $250,000 in the Edgar Thomson Steel Company, formed in 1874 with a capital of $1 million. The Bessemer plant at the company's site at Braddock's Field, near Pittsburgh was designed to manufacture high quality steel rails. Carnegie's huge success with this venture was due first to his commitment to technological change and second to his previous experience with the railroads. He wanted to have the most modern equipment available and was willing, whenever necessary, to scrap expensive machinery after only a short time if better technology could be had. The administrative structure he put together at the Edgar Thomson works was similar to the one he had worked in at the Pennsylvania Railroad. He appointed the country's most talented steel engineer, Captain William Jones (1839-1889), as general superintendent to oversee the daily work of the managers in charge of the blast furnaces. Jones had invented several basic tools, such as the "Jones Mixer."  Carnegie frequently pressured Jones to decrease employee wages, only to have Jones fearlessly reiterate the efficacy of enlightened labor policy.<ref> Tom Gage, "'Hands-on, All-over': Captain Bill Jones." ''Pittsburgh History'' 1997-1998 80(4): 148-169. Issn: 1069-4706 </ref>   

Carnegie purchased iron ore lands in the Lake Superior region, acquired ships and ore-handling facilities, and joined forces in 1884 with Henry Clay Frick (1849–1919), who controlled the great Connesville coal beds. He formed Carnegie Bros. & Co. in 1881 with a capital of $5 million; its chairman was Tom Carnegie; after 1889 Frick held the post. Andrew Carnegie himself had no title, though he controlled 55% of the capital in the partnership, which made a profit of $2 million in its first year.  

Carnegie purchased iron ore lands in the Lake Superior region, acquired ships and ore-handling facilities, and joined forces in 1884 with Henry Clay Frick (1849–1919), who controlled the great Connesville coal beds. He formed Carnegie Bros. & Co. in 1881 with a capital of $5 million; its chairman was Tom Carnegie; after 1889 Frick held the post. Andrew Carnegie himself had no title, though he controlled 55% of the capital in the partnership, which made a profit of $2 million in its first year.