Andrew Carnegie: Lawbreaker Or Law-Abiding?

Andrew Carnegie was a Scottish-American industrialist and philanthropist. Born in Dunfermline, Scotland, Carnegie immigrated to the US with his family at the age of 12. He started working in a cotton mill and later became a telegrapher. Carnegie eventually led the expansion of the American steel industry in the late 19th century and became one of the richest Americans in history. While he is known for his philanthropic work, there is a question over whether Carnegie broke any laws during his career.

Carnegie's involvement in the 1892 Homestead Strike, where he locked out union workers from his Homestead, Pennsylvania, steel mill, marred his reputation. The strike turned violent, resulting in the deaths of at least 10 men. Despite expressing support for trade unions in print, Carnegie's actions during the Homestead Strike indicated that he did not want unions in his steel mills. He repeatedly employed strikebreakers and drove his employees to work longer hours without pay increases. Carnegie also demanded 12-hour shifts and implemented a sliding scale that tied wages directly to the price of steel.

Carnegie was one of over 50 members of the South Fork Fishing and Hunting Club, which has been blamed for the Johnstown Flood that killed 2,209 people in 1889. However, it is unclear if Carnegie spent any time at the club, and he was in Paris, France, when the flood occurred.

Carnegie also consolidated his holdings to form the Carnegie Steel Company in 1892, which may have been an attempt to create a monopoly in the steel industry. In 1901, J.P. Morgan bought Carnegie Steel and merged it into U.S. Steel, creating a corporation approaching the size of Standard Oil and controlling about 60% of steel production. While this move may have been influenced by a desire to create a monopoly, it is unclear if Carnegie or Morgan broke any laws, as specific antitrust legislation was not introduced until 1914 with the Clayton Act.

Did Andrew Carnegie break laws during the Homestead Strike?

The Homestead Strike of 1892 was a violent labour dispute between the Carnegie Steel Company and its workers in Homestead, Pennsylvania. While it is unclear if Andrew Carnegie broke any laws during the strike, his actions and those of his plant manager, Henry Clay Frick, were unethical and resulted in loss of life.

Carnegie's involvement in the union-breaking action forever tarnished his reputation as a benevolent employer and a champion of labour. Carnegie supported Frick's plans behind the scenes, despite his public pro-labour stance. In the spring of 1892, Carnegie instructed Frick to produce as much armour plate as possible before the union's contract expired at the end of June. If the union failed to accept Frick's terms, Carnegie told him to shut down the plant and wait until the workers gave in. Carnegie wrote from England, "We... approve of anything you do... We are with you to the end."

Carnegie travelled to Scotland in May 1892, leaving Homestead in Frick's hands. Although he later tried to distance himself from the events, his cables to Frick were clear: do whatever it takes. Carnegie gave Frick permission to break the union and cut workers' wages, which the workers protested by going on strike. Frick locked them out and fenced off the plant with a 12-foot-high, three-mile-long barrier that workers dubbed "Fort Frick". On July 2, Frick fired all 3,800 workers.

Carnegie hired the Pinkerton National Detective Agency to protect the non-union workers he planned to hire. On July 6, 1892, 300 Pinkerton detectives arrived at the Homestead plant, where thousands of striking workers and their families were gathered. The two groups exchanged gunfire, and at least three Pinkerton agents and seven workers were killed.

The violence appalled Carnegie, who wrote, "The Works are not worth one drop of human blood. I wish they had sunk." However, he pressed on, and at Frick's request, the Pennsylvania governor sent 8,500 troops to Homestead. The plant was turned over to the militia on July 12, and by July 15, it was operational again with replacement workers.

The Homestead debacle helped turn public opinion against the use of hired security in labour disputes, and 26 states passed laws outlawing it in the years following. Carnegie's reputation was irreparably damaged, and critics branded him a hypocrite and a coward for hiding in Scotland while Frick did the "dirty work".

Did Andrew Carnegie break laws with his business acquisitions?

Andrew Carnegie was a Scottish-American industrialist and philanthropist who led the expansion of the American steel industry in the late 19th century and became one of the richest Americans in history. Carnegie's business career was not unlike that of other ambitious immigrants who made their fortunes by being in the right place at the right time. However, there is no indication that Carnegie broke any laws with his business acquisitions. In fact, he is known for his philanthropic work, giving away most of his wealth to charities, foundations, universities, and other philanthropic ventures.

Carnegie started working at a young age, finding employment as a bobbin boy at a cotton mill when he was 12 years old. He then worked as a telegraph messenger and operator, and eventually became the division superintendent of the Pennsylvania Railroad in 1859. While working for the railroad, he invested in various ventures, including coal, iron, and oil companies, and made his first fortune by his early 30s.

Carnegie co-founded his first steel company near Pittsburgh in the early 1870s and created a steel empire over the next few decades. He maximized profits and minimized inefficiencies by owning factories, raw materials, and transportation infrastructure involved in steelmaking. In 1892, his primary holdings were consolidated to form the Carnegie Steel Company.

In 1901, Carnegie sold the Carnegie Steel Company to banker John Pierpont Morgan for $480 million, making him one of the richest men in the world. He then devoted himself to philanthropy, eventually giving away more than $350 million, which represented the bulk of his wealth. Carnegie funded the establishment of more than 2,500 public libraries around the globe, donated more than 7,600 organs to churches worldwide, and endowed organizations dedicated to science, education, world peace, and other causes.

Did Andrew Carnegie break laws with his involvement in the South Fork Fishing and Hunting Club?

Andrew Carnegie was a member of the South Fork Fishing and Hunting Club, which has been blamed for the Johnstown Flood that killed over 2,000 people in 1889. The club owned the South Fork Dam, which had a history of negligent maintenance and alterations that were believed to have contributed to its failure on May 31, 1889. Despite the evidence suggesting that the club was to blame, its members evaded legal responsibility for the disaster.

While there is no indication that Carnegie himself broke any laws, his association with the club raises questions about his role in the tragedy. As one of the leading members, Carnegie's involvement included joining his friend Benjamin Ruff, and his partner Henry Clay Frick in forming the exclusive club. The club's members were the leading business tycoons of Western Pennsylvania, including Frick's best friend, Andrew Mellon, and his attorneys Philander Knox and James Hay Reed.

The South Fork Dam was originally built by the Commonwealth of Pennsylvania between 1838 and 1853 as part of a canal system. However, with the advent of railroads, the lake was abandoned, sold to the Pennsylvania Railroad, and eventually sold to private interests before being acquired by the club in 1881. Prior to the flood, speculators had purchased the abandoned reservoir, made inadequate repairs to the dam, raised the lake level, and built cottages and a clubhouse.

Carnegie and the other club members were aware of the dam's integrity issues, and concerns had been raised by the head of the Cambria Iron Works downstream in Johnstown. Despite this, the club failed to address the problems adequately. The dam frequently sprang leaks and was patched with mud and straw between 1881 and 1889. Additionally, a previous owner had removed and sold for scrap the discharge pipes that allowed controlled water release.

When the dam broke, unleashing a torrent of water that destroyed several towns and resulted in the Johnstown Flood, Carnegie and the other club members formed the Pittsburgh Relief Committee to provide assistance to the flood victims. They also decided to never speak publicly about the club or the flood, a strategy that proved successful. Knox and Reed successfully fended off all lawsuits against the club and its members, arguing that the dam's failure was a natural disaster and an Act of God.

While Carnegie's involvement in the South Fork Fishing and Hunting Club did not directly result in legal consequences, the tragedy raises ethical questions about his actions and those of his fellow club members. Their failure to address known issues with the dam and their evasion of responsibility for the disaster led to devastating consequences for the people of Johnstown.

Did Andrew Carnegie break laws with his involvement in the steel industry?

Andrew Carnegie was a Scottish-American industrialist and philanthropist who led the expansion of the American steel industry in the late 19th century. Although he claimed to be pro-union, his actions didn't always match his rhetoric. Carnegie's involvement in the steel industry was marred by the violent Homestead Strike in 1892 at his Homestead, Pennsylvania, steel mill. After union workers protested wage cuts, Carnegie Steel general manager Henry Clay Frick locked the workers out of the plant. Carnegie was on vacation in Scotland during the strike, but he supported Frick, who called in around 300 Pinkerton armed guards to protect the plant. A bloody battle broke out between the striking workers and the Pinkertons, leaving at least 10 people dead.

Carnegie's role in the Homestead Strike damaged his reputation as a supporter of the working man. However, it is unclear whether he broke any laws during this incident. While he may have engaged in union-busting tactics, these were not necessarily illegal at the time.

Carnegie also consolidated his holdings to form the Carnegie Steel Company in 1892, which may have raised antitrust concerns. However, it was not until 1890 that the Sherman Antitrust Act was passed, banning monopolistic combinations that placed "unreasonable" restrictions on interstate and international markets. It is possible that Carnegie's steel empire violated this act, but it is unclear whether he was ever charged or prosecuted for any antitrust violations.

In conclusion, while Carnegie's actions in the steel industry, particularly during the Homestead Strike, were controversial and damaging to his reputation, it is difficult to determine based on the available information whether he broke any laws. Further research into the specific laws and regulations in place at the time, as well as any legal actions taken against Carnegie, would be needed to make a definitive conclusion.

Did Andrew Carnegie break laws with his involvement in the railroad industry?

Andrew Carnegie's involvement in the railroad industry was marked by a rapid ascent from his working-class beginnings. Carnegie's career in the railroad industry began with a series of jobs, including messenger in a telegraph office and secretary and telegraph operator for the superintendent of the Pittsburgh division of the Pennsylvania Railroad. By 1859, Carnegie had risen to the position of division superintendent of the Pennsylvania Railroad. While in this position, he made profitable investments in a variety of businesses, including coal, iron and oil companies, and a manufacturer of railroad sleeping cars.

Carnegie's tenure with the railroad ended in 1865, but he continued to leverage his connections and expand his railroad-related investments. He founded ventures such as an iron bridge-building company (Keystone Bridge Company) and a telegraph firm, often using his connections to win insider contracts. Carnegie's investments in the railroad industry, along with his other ventures, made him a very wealthy man by his early 30s.

While there is no indication that Carnegie broke any laws during his involvement in the railroad industry, his business practices have been criticised as unethical. Carnegie's investments were often made through insider trading and quid pro quo arrangements with Pennsylvania Railroad executives Thomas A. Scott and J. Edgar Thomson. Carnegie also used his connections with the railroad industry to benefit his other ventures. For example, he supplied steel for and owned shares in the Eads Bridge project, which was an important customer of the Pennsylvania Railroad.

Carnegie's business philosophy was simple: he retained profits earned in good times to tide him over during bad times, and he expanded during depressions when construction costs were low and competitors were forced to sell. Carnegie also constantly innovated to reduce operating costs, as he believed that small reductions in costs had a greater impact on profits than construction costs. Carnegie's business practices, while potentially unethical, do not appear to have been illegal at the time.

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