Autobiography of Andrew Carnegie

were even able to exchange a poor article for a good one and obtain a bonus. But it is still more unbelievable that a prejudice, equally unfounded, existed against putting into the blast furnaces the roll-scale from the mills which was pure oxide of iron. This reminds me of my dear friend and fellow-Dunfermline townsman, Mr. Chisholm, of Cleveland. We had many pranks together. One day, when I was visiting his works at Cleveland, I saw men wheeling this valuable roll-scale into the yard. I asked Mr. Chisholm where they were going with it, and he said: "To throw it over the bank. Our managers have always complained that they had bad luck when they attempted to remelt it in the blast furnace." I said nothing, but upon my return to Pittsburgh I set about having a joke at his expense. We had then a young man in our service named Du Puy, whose father was known as the inventor of a direct process in iron-making with which he was then experimenting in Pittsburgh. I recommended our people to send Du Puy to Cleveland to contract for all the roll-scale of my friend's establishment. He did so, buying it for fifty cents per ton and having it shipped to him direct. This continued for some time. I expected always to hear of the joke being discovered. The premature death of Mr. Chisholm occurred before I could apprise him of it. His successors soon, however, followed our example. I had not failed to notice the growth of the Bessemer process. If this proved successful I knew that iron was destined to give place to steel; that the Iron Age would pass away and the Steel Age take its place. My friend, John A. Wright, president of the Freedom Iron Works at Lewiston, Pennsylvania, had visited England purposely to investigate the new process. He was one of our best and most experienced manufacturers, and his decision was so strongly in its favor that he induced his company to erect Bessemer works. He was quite right, but just a little in advance of his time. The capital required was greater than he estimated. More than this, it was not to be expected that a process which was even then in somewhat of an experimental stage in Britain could be transplanted to the new country and operated successfully from the start. The experiment was certain to be long and costly, and for this my friend had not made sufficient allowance. At a later date, when the process had become established in England, capitalists began to erect the present Pennsylvania Steel Works at Harrisburg. These also had to pass through an experimental stage and at a critical moment would probably have been wrecked but for the timely assistance of the Pennsylvania Railroad Company. It required a broad and able man like President Thomson, of the Pennsylvania Railroad, to recommend to his board of directors that so large a sum as six hundred thousand dollars should be advanced to a manufacturing concern on his road, that steel rails might be secured for the line. The result fully justified his action. The question of a substitute for iron rails upon the Pennsylvania Railroad and other leading lines had become a very serious one. Upon certain curves at Pittsburgh, on the road connecting the Pennsylvania with the Fort Wayne, I had seen new iron rails placed every six weeks or two months. Before the Bessemer process was known I had called President Thomson's attention to the efforts of Mr. Dodds in England, who had carbonized the heads of iron rails with good results. I went to England and obtained control of the Dodds patents and recommended President Thomson to appropriate twenty thousand dollars for experiments at Pittsburgh, which he did. We built a furnace on our grounds at the upper mill and treated several hundred tons of rails for the Pennsylvania Railroad Company and with remarkably good results as compared with iron rails. These were the first hard-headed rails used in America. We placed them on some of the sharpest curves and their superior service far more than compensated for the advance made by Mr. Thomson. Had the Bessemer process not been successfully developed, I verily believe that we should ultimately have been able to improve the Dodds process sufficiently to make its adoption general. But there was nothing to be compared with the solid steel article which the Bessemer process produced. Our friends of the Cambria Iron Company at Johnstown, near Pittsburgh--the principal manufacturers of rails in America--decided to erect a Bessemer plant. In England I had seen it demonstrated, at least to my satisfaction, that the process could be made a grand success without undue expenditure of capital or great risk. Mr. William Coleman, who was ever alive to new methods, arrived at the same conclusion. It was agreed we should enter upon the manufacture of steel rails at Pittsburgh. He became a partner and also my dear friend Mr. David McCandless, who had so kindly offered aid to my mother at my father's death. The latter was not forgotten. Mr. John Scott and Mr. David A. Stewart, and others joined me; Mr. Edgar Thomson and Mr. Thomas A. Scott, president and vice-president of the Pennsylvania Railroad, also became stockholders, anxious to encourage the development of steel. The steel-rail company was organized January 1, 1873. The question of location was the first to engage our serious attention. I could not reconcile myself to any location that was proposed, and finally went to Pittsburgh to consult with my partners about it. The subject was constantly in my mind and in bed Sunday morning the site suddenly appeared to me. I rose and called to my brother: "Tom, you and Mr. Coleman are right about the location; right at Braddock's, between the Pennsylvania, the Baltimore and Ohio, and the river, is the best situation in America; and let's call the works after our dear friend Edgar Thomson. Let us go over to Mr. Coleman's and drive out to Braddock's." We did so that day, and the next morning Mr. Coleman was at work trying to secure the property. Mr. McKinney, the owner, had a high idea of the value of his farm. What we had expected to purchase for five or six hundred dollars an acre cost us two thousand. But since then we have been compelled to add to our original purchase at a cost of five thousand dollars per acre. There, on the very field of Braddock's defeat, we began the erection of our steel-rail mills. In excavating for the foundations many relics of the battle were found--bayonets, swords, and the like. It was there that the then provost of Dunfermline, Sir Arthur Halkett, and his son were slain. How did they come to be there will very naturally be asked. It must not be forgotten that, in those days, the provosts of the cities of Britain were members of the aristocracy--the great men of the district who condescended to enjoy the honor of the position without performing the duties. No one in trade was considered good enough for the provostship. We have remnants of this aristocratic notion throughout Britain to-day. There is scarcely any life assurance or railway company, or in some cases manufacturing company but must have at its head, to enjoy the honors of the presidency, some titled person totally ignorant of the duties of the position. So it was that Sir Arthur Halkett, as a gentleman, was Provost of Dunfermline, but by calling he followed the profession of arms and was killed on this spot. It was a coincidence that what had been the field of death to two native-born citizens of Dunfermline should be turned into an industrial hive by two others. Another curious fact has recently been discovered. Mr. John Morley's address, in 1904 on Founder's Day at the Carnegie Institute, Pittsburgh, referred to the capture of Fort Duquesne by General Forbes and his writing Prime Minister Pitt that he had rechristened it "Pittsburgh" for him. This General Forbes was then Laird of Pittencrieff and was born in the Glen which I purchased in 1902 and presented to Dunfermline for a public park. So that two Dunfermline men have been Lairds of Pittencrieff whose chief work was in Pittsburgh. One named Pittsburgh and the other labored for its development. In naming the steel mills as we did the desire was to honor my friend Edgar Thomson, but when I asked permission to use his name his reply was significant. He said that as far as American steel rails were concerned, he did not feel that he wished to connect his name with them, for they had proved to be far from creditable. Uncertainty was, of course, inseparable from the experimental stage; but, when I assured him that it was now possible to make steel rails in America as good in every particular as the foreign article, and that we intended to obtain for our rails the reputation enjoyed by the Keystone bridges and the Kloman axles, he consented. He was very anxious to have us purchase land upon the Pennsylvania Railroad, as his first thought was always for that company. This would have given the Pennsylvania a monopoly of our traffic. When he visited Pittsburgh a few months later and Mr. Robert Pitcairn, my successor as superintendent of the Pittsburgh Division of the Pennsylvania, pointed out to him the situation of the new works at Braddock's Station, which gave us not only a connection with his own line, but also with the rival Baltimore and Ohio line, and with a rival in one respect greater than either--the Ohio River--he said, with a twinkle of his eye to Robert, as Robert told me: "Andy should have located his works a few miles farther east." But Mr. Thomson knew the good and sufficient reasons which determined the selection of the unrivaled site. The works were well advanced when the financial panic of September, 1873, came upon us. I then entered upon the most anxious period of my business life. All was going well when one morning in our summer cottage, in the Allegheny Mountains at Cresson, a telegram came announcing the failure of Jay Cooke & Co. Almost every hour after brought news of some fresh disaster. House after house failed. The question every morning was which would go next. Every failure depleted the resources of other concerns. Loss after loss ensued, until a total paralysis of business set in. Every weak spot was discovered and houses that otherwise would have been strong were borne down largely because our country lacked a proper banking system. We had not much reason to be anxious about our debts. Not what we had to pay of our own debts could give us much trouble, but rather what we might have to pay for our debtors. It was not our bills payable but our bills receivable which required attention, for we soon had to begin meeting both. Even our own banks had to beg us not to draw upon our balances. One incident will shed some light upon the currency situation. One of our pay-days was approaching. One hundred thousand dollars in small notes were absolutely necessary, and to obtain these we paid a premium of twenty-four hundred dollars in New York and had them expressed to Pittsburgh. It was impossible to borrow money, even upon the best collaterals; but by selling securities, which I had in reserve, considerable sums were realized--the company undertaking to replace them later. It happened that some of the railway companies whose lines centered in Pittsburgh owed us large sums for material furnished--the Fort Wayne road being the largest debtor. I remember calling upon Mr. Thaw, the vice-president of the Fort Wayne, and telling him we must have our money. He replied: "You ought to have your money, but we are not paying anything these days that is not protestable." "Very good," I said, "your freight bills are in that category and we shall follow your excellent example. Now I am going to order that we do not pay you one dollar for freight."