Andrew Carnegie was a Scottish-American industrialist who accelerated the growth of the American steel industry toward the end of 19th century. After amassing a substantial fortune from his investments, he set an example for the super-rich by giving away almost 90% of his wealth to improve life for the less fortunate.
Born in Dunfermline, Scotland, Andrew Carnegie began his life in a one room house which was shared with a neighboring family. He took his first job at 13 as a bobbin boy to help support his family. He would change the spools of thread in a cotton mill for 12 hours a day. With the family near starving and his father out of a job, they decided to immigrate to the United States in the hopes of a better life. In 1848 the family took up residence in Allegheny, Pennsylvania.
In 1850, Carnegie started working as a messenger for the Ohio Telegraph Company. Carnegie had a passion for learning and hard work. He had a sharp memory and was able to make connections with local businessmen and would remember things about them. He was promoted within a year. His attention to detail and determination quickly opened up opportunities for him. At age 18, he took a job with the Pennsylvania Railroad Company as a telegraph operator and quickly advanced through the ranks, becoming Superintendent of his Division.
With the help of his mentors, Carnegie invested in the railroad, which slowly earned him extra capital. In the spring of 1861, he was appointed Superintendent of the Military Railways, and helped pull the first brigade of Union troops to Washington D.C. The civil war demonstrated how important the telegraph and railroad industries was to American success, and Carnegie’s investments continued to grow. Near the end of the war, his investment in a farm on oil-rich land turned into a windfall, which he quickly reinvested into the steel industry.
Steel is where Carnegie made his fortune, by creating integrated steel operations all over the United States. From raw materials to mass production to delivery of finished steel products, Carnegie’s business dominated by addressing every aspect of the industry. He acquired numerous small operations and integrated them into his own. In 1901, he negotiated a deal to sell his operation to John Pierpont Morgan for $480 million.
Carnegie devoted the next 18 years to finding ways that his fortune could help improve the lives of others. He established public libraries throughout the English speaking countries. He donated $2 million to create the Carnegie Institute of Technology, now known as Carnegie Mellon University. He funded numerous organizations and institutions, including the Tuskegee institute, Carnegie Hall, and the Peace Palace at The Hague. When Carnegie died in 1919, he had already given away $350 million, which would be approximately $4.75 billion today.
Towards the end of her life, Carnegie devoted himself to taking care of his aging mother. “Do your duty and a little more and the future will take care of itself.” He always felt a personal responsibility to give back to others and the community. He saw money as a way to make positive change in the world.