Pronounced Influence Of Carnegie Steel In 19th-Century America

Elijah Renner Mrs. Stacy Barton US History Honors 15 April 2024 The Pronounced Influence of Carnegie Steel in 19th-Century America In the turbulent landscape of late 19th-century America, Andrew Carnegie’s steel empire stood as a titan. The 19th-century lively American economy was characterized by rapid industrialization, with the emergence of dominant forces in various young industries. Following the Civil War, the hunger for steel surged, and Carnegie Steel met this demand head-on through cutting-edge methods like the Bessemer process. In relentless mass production of steel, Carnegie Steel ignited railroad expansion, while also catalyzing urban development. But Carnegie Steel’s rise wasn’t without controversy: through vertical integration

In 1859, Carnegie replaced executive Thomas A. Scott as superintendent of the Western Division (Resetar). Carnegie was appointed Superintendent of the Military Railways and the Union government’s telegraph lines in 1861. During Carnegie's time in these roles, he began to understand the magnitude of demand for iron products in the expanding railroad industry. This prompted him to enter the steel industry (Terrell and Snyder). In 1865, Carnegie exited the railroad industry. In 1872, using wealth obtained from his investments in the railroad, he founded the Carnegie Steel Company. The company, Carnegie believed, would be very successful if it could meet the railroad’s demand for iron and steel (“Andrew Carnegie” 310). Before 1867, however, steel was only manufactured in small batches (Sisson 79). To efficiently produce steel, Carnegie sought to implement new methodologies. Between 1865 and 1870, Carnegie, an independent investor, noticed the effectiveness of Bessemer converters in English steel production (“Andrew Carnegie” 310). The Bessemer steelmaking process was patented by Henry Bessemer, an English engineer, in

When population density in cities like New York rose, engineers used steel, a lighter and stronger material than iron, to construct taller buildings (“Technological Innovations”). What’s more, mass-produced steel rails save railways money by minimizing maintenance costs. Reduced maintenance costs contributed to higher cost-effectiveness, leading to growth in steel rail usage during the 1880s (Atack 357). Carnegie capitalized on the value of his product, becoming a fierce competitor in the steel industry. The abundance of raw iron materials contributed to low-cost steel production. In the mid-19th century, large iron ore deposits were found in the Lake Superior region. One site, the Mesabi Range, became the largest iron ore producer in the world (“Joan Waugh's Gilded Age Homepage”). Carnegie Steel employed vertical integration, a business practice where a company controls every part of its supply chain. Carnegie Steel achieved decreased production costs by operating its suppliers of raw materials (Gordon). In December 1896, Carnegie Steel purchased a 50-year lease to John D. Rockefeller's large Mesabi Range iron