The American Experience
Andrew Carnegie: Making Money the Old Fashioned Way

Steel Mill Tour



"Farewell, then, Age of Iron; all hail, King Steel.." Andrew Carnegie

In early August of 1875, the new Edgar Thomson works received its first order-- 2,000 steel rails. On August 22 of that year Andrew Carnegie's modern plant lit up the sky as its pear shaped Bessemer Converter roared to life. Sparks and fire shot up into the sky, signaling that Andrew Carnegie was ushering America into the age of steel.

The Edgar Thomson works, located on the banks of the Monongahela River on the outskirts of Pittsburgh, was a model of efficiency--as was any Carnegie endeavor. But even by Carnegie's high standards, the scale and output of the plant were outstanding.

Pushed by Carnegie and his managers, the men at ET produced vast amounts of steel. By the first quarter of 1877 ET had produced 14,940 tons of rails and billets and was the leading producer of steel rails in the country.


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The Bessemer Process

The heart of Carnegie's plant was a contraption known as the Bessemer Converter. Named for its inventor, the Bessemer made it possible to produce a large amount of steel. Bessemer, the quintessential inventor and the son of an engineer, produced his first invention at the age of seventeen--embossed stamps for use on title deeds. At that time, the British government was losing thousands of pounds in revenue each year through the illegal reuse of title stamps. Bessemer's invention made the crime virtually impossible and earned him his first job. Over the course of his life Bessemer secured over 110 patents.

photo of Harold Livsey

While attempting to develop explosive shells for Napoleon's army, Bessemer found himself in need of stronger steel and began to experiment with a new process. His idea was a simple one--he would construct a furnace capable of injecting air into a vat of molten iron--the blasts of air created the heat which in turn burned out the impurities] The result was steel. Although there were some problems, Bessemer's furnace, known as the Bessemer Converter, attracted world wide attention. Until then, it had only been possible to produce steel in small quantities but with some refinements, Bessemer's invention made possible the production of steel on a large scale. When Andrew Carnegie saw the potential of the Bessemer, he realized the inevitability of the age of steel and moved quickly to bring the technology to America.

photo of John Ingham

Efficiency was the mark of the Edgar Thomson works but there was a human cost attached to the speed of the operation.


The Puddlers

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Prior to the age of steel, the manufacturing of metal had been controlled by men known as puddlers, who made wrought iron in small quantities. Quite unlike the men who ran the machines at Andrew Carnegie's Edgar Thomson works, the puddlers were craftsman, whose knowledge and skill were passed on through apprenticeship.

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The puddlers would lose as Carnegie and the Bessemer accelerated the change from iron to steel, much like Andrew Carnegie's father had lost out when the Industrial Revolution brought mechanization to the garment industry.


Cost Conscious

Carnegie would enjoy fabulous success in the steel business--a success he had been preparing for throughout his business career. The key was in watching the costs.


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The Bessemer

From the start, Andrew Carnegie's Bessemers generated a lot of money. William P Shinn, Carnegie's general manager sent his boss the following memo two months into ET's operation:

October costs--cost per ton of rails:

Labor $8.26 Metal $40.86 Lime, fuel, etc. $6.31

Total $55.47 Bess. & Siemens royalites $1.17 $56.64

Sold at an average of $66.32 per T, so our profit of $9.86 per T is pretty good for second month. We made $18,000 in second month of operation.


Working the Mill

Working in a steel mill was not a pleasant task. Bill Rogel, a former steel worker, worked the Bessemers at a Pittsburgh plant.

photo of Bill Rogel

From a distance the Bessemer produced what looked like a fireworks display. Up close, it was not nearly as charming.

At the Edgar Thomson plant the molds would form ingots. From those, the workers would form steel rails.

The reputation of steel workers as tough guys was well deserved. At the plant, danger lurked around every corner and at the top of every blast furnace.




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