The Age of Big Business by Burton Jesse Hendrick (best android ereader .TXT) 📕

When some future Buckle analyzes the fundamental facts in the World War, he may possibly find that steel precipitated it and that steel determined its outcome.

Three circumstances contributed to the rise of this greatest of American industries: a new process for cheaply converting molten pig iron into steel, the discovery of enormous deposits of ore in several sections of the United States, and the entrance into the business of a hardy and adventurous group of manufacturers and business men. Our steel industry is thus another triumph of American inventive skill, made possible by the richness of our mineral resources and the racial energy of our people. An elementary scientific discovery introduced the great steel age.

Steel, of course, is merely iron which has been refined—freed from certain impurities, such as carbon, sulphur, and phosphorus.

We refine our iron and turn it into steel precisely as we refine our sugar and petroleum. From the days of Tubal Cain the iron worker had known that heat would accomplish this purification; but heat, up to almost 1865, was an exceedingly expensive commodity. For ages iron workers had obtained the finer metal by applying this heat in the form of charcoal, never once realizing that unlimited quantities of another fuel existed on every hand.

The man who first suggested that so commonplace a substance as air, blown upon molten pig iron, would produce the intensest heat and destroy its impurities, made possible our steel railroads, our steel ships, and our steel cities. When William Kelly, an owner of iron works near Eddyville, Kentucky, first proposed this method in 1847, he met with the ridicule which usually greets the pioneer inventor. When Henry Bessemer, several years afterward, read a paper before the British Association for the Advancement of Science, in which he advocated the same principle, he was roared down as “a crazy Frenchman,” and the savants were so humiliated by the suggestion that they voted to make no record of his “silly paper” in their official minutes. Yet these two men, the American Kelly and the Englishman Bessemer, were the creators of modern steel. The records of the American Patent Office clearly show that Kelly made “Bessemer” steel many years before Bessemer. In 1870 the American Government refused to extend Bessemer’s patent in this country on the ground that William Kelly had a prior claim; in spite of this, Bessemer was undoubtedly the man who developed the mechanical details and gave the process a universal standing.

Though the Bessemer process made possible the production of steel by tons instead of by pounds, it would never in itself have given the nation its present preeminence in the steel industry. Iron had been mined in the United States for two centuries on a small scale, the main deposits being located in the Lake Champlain region of New York and in western Pennsylvania. But these, and a hundred other places located along the Atlantic coast, could not have produced ore in quantities sufficient to satisfy the yawning jaws of the Bessemer converters. As this new method poured out the liquid in thousands of tons, and as the commercial demand extended in a dozen different directions, the cry went up from the furnace’s for more ore. And again Nature, which has favored America in so many directions, came to her assistance.

Manufacturers in the steel regions began to recall strange stories which had been floating down for many years from the wilderness surrounding Lake Superior. The recollection of a famous voyage made in this region by Philo M. Everett, as far back as 1845, now laid siege to the imagination of the new generation of ironmasters. For years the Indians had told Everett of the “mountains of iron” that lay on the Minnesota shore of Lake Superior and had described their wonders in words that finally impelled this hardy adventurer to make a voyage of exploration. For six weeks, in company with two Indian guides, Everett had navigated a small boat along the shores of the Lake, covering a distance that now takes only a few hours. The Indians had long regarded this silent, red iron region with a superstitious reverence, and now, as the little party approached, they refused to complete the journey. “Iron Mountain!” they said, pointing northward along the trail—“Indian not go near; white man go!” The sight which presently met Everett’s eyes repaid him well for his solitary tramp in the forest. He found himself face to face with a “mountain a hundred and fifty feet high, of solid ore, which looked as bright as a bar of iron just broken.” Other explorations subsequently laid open the whole of the Minnesota fields, including the Mesaba, which developed into the world’s greatest iron range. America has other regions rich in ore, particularly in Alabama, located alongside the coal and limestone so necessary in steel production; yet it has drawn two-thirds of its whole supply from these Lake Superior fields. Not only the quantity, which is apparently limitless, but the quality explains America’s leadership in steel making.

Mining in Minnesota has a character which is not duplicated elsewhere. When we think of an iron mine, we naturally picture subterranean caverns and galleries, and strange, gnome-like creatures prowling about with pick and shovel and drill. But mining in this section is a much simpler proceeding. The precious mineral does not lie concealed deep within the earth; it lies practically upon the surface. Removing it is not a question of blasting with dynamite; it is merely a matter of lifting it from the surface of the earth with a huge steam shovel. “Miners” in Minnesota have none of the conventional aspects of their trade.

They operate precisely as did those who dug the Panama Canal. The railroad cars run closely to the gigantic red pit. A huge steam shovel opens its jaws, descends into an open amphitheater, licks up five tons at each mouthful, and, swinging sideways over the open cars, neatly deposits its booty. It is not surprising that ore can be produced at lower cost in the United States than even in those countries where the most wretched wages are paid.

Evidently this one iron field, to say nothing of others already worked, gives a permanence to our steel industry.

Not only did America have the material resources; what is even more important, she had also the men. American industrial history presents few groups more brilliant, more resourceful, and more picturesque than that which, in the early seventies, started to turn these Minnesota ore fields into steel—and into gold. These men had all the dash, all the venturesomeness, all the speculative and even the gambling instinct, needed for one of the greatest industrial adventures in our annals. All had sprung from the simplest and humblest origins. They had served their business apprenticeships as grocery clerks, errand boys, telegraph messengers, and newspaper gamins. For the most part they had spent their boyhood together, had played with each other as children, had attended the same Sunday schools, had sung in the same church choirs, and, as young men, had quarreled with each other over their sweethearts. The Pittsburgh group comprised about forty men, most of whom retired as millionaires, though their names for the most part signify little to the present-day American. Kloman, Coleman, McCandless, Shinn, Stewart, Jones, Vandervoort—are all important men in the history of American steel. Thomas A. Scott and J. Edgar Thompson, men associated chiefly with the creation of the Pennsylvania Railroad, also made their contributions. But three or four men towered so preeminently above their associates that today when we think of the human agencies that constructed this mighty edifice, the names that insistently come to mind are those of Carnegie, Phipps, Frick, and Schwab.

Books have been written to discredit Carnegie’s work and to picture him as the man who has stolen success from the labor of greater men. Yet Carnegie is the one member of a brilliant company who had the indispensable quality of genius. He had none of the plodding, painstaking qualities of a Rockefeller; he had the fire, the restlessness, the keen relish for adventure, and the imagination that leaped far in advance of his competitors which we find so conspicuous in the older Vanderbilt. Carnegie showed these qualities from his earliest days. Driven as a child from his Scottish home by hunger, never having gone to school after twelve, he found himself, at the age of thirteen, living in a miserable hut in Allegheny, earning a dollar and twenty cents a week as bobbin-boy in a cotton mill, while his mother augmented the family income by taking in washing. Half a dozen years later Thomas Scott, President of the Pennsylvania Railroad, made Carnegie his private secretary. How well the young man used his opportunities in this occupation appeared afterward when he turned his wide acquaintanceship among railroad men to practical use in the steel business. It was this personal adaptability, indeed, that explains Carnegie’s success. In the narrow, methodical sense he was not a business man at all; he knew and cared nothing for its dull routine and its labyrinthine details.

As a practical steel man his position is a negligible one. Though he was profoundly impressed by his first sight of a Bessemer converter, he had little interest in the every-day process of making steel. He had also many personal weaknesses: his egotism was marked, he loved applause, he was always seeking opportunities for self-exploitation, and he even aspired to fame as an author and philosopher. The staid business men of Pittsburgh early regarded Carnegie with disfavor; his daring impressed them as rashness and his bold adventures as the plunging of the speculator. Yet in all its aspects Carnegie’s triumph was a personal one. He was perhaps the greatest commercial traveler this country has ever known. While his more methodical associates plodded along making steel, Carnegie went out upon the highway, bringing in orders by the millions. He showed this same personal quality in the organization of his force. As a young man, entirely new to the steel industry, he selected as the first manager of his works Captain Bill Jones; his amazing judgment was justified when Jones developed into America’s greatest practical genius in making steel. “Here lies the man”—Carnegie once suggested this line for his epitaph—“who knew how to get around him men who were cleverer than himself.”

Carnegie inspired these men with his own energy and restlessness; the spirit of the whole establishment automatically became that of the pushing spirit of its head. This little giant became the most remorseless pace-maker in the steel regions. However astounding might be the results obtained by the Carnegie works the captain at the head was never satisfied. As each month’s output surpassed that which had gone before, Carnegie always came back with the same cry of “More.” “We broke all records for making steel last week!” a delighted superintendent once wired him and immediately he received his answer, “Congratulations. Why not do it every week?” This spirit explains the success of the Carnegie Company in outdistancing all its competitors and gaining a worldwide preeminence for the Pittsburgh district. But Carnegie did not make the mistake of capitalizing all this prosperity for himself; his real greatness as an American business man consists