Famous Givers and Their Gifts. Bolton Sarah Knowles
unusual, and especially must this be beyond the strict boundary of his duties. He must suggest, or save, or perform some service for his employer which he could not be censured for not having done. When he has thus attracted the notice of his immediate superior, whether that be only the foreman of a gang, it matters not; the first great step has been taken, for upon his immediate superior promotion depends. How high he climbs is his own affair."
Carnegie "kept his eyes and ears open." In his "Triumphant Democracy" he relates the following incident: "Well do I remember that, when a clerk in the service of the Pennsylvania Railroad Company, a tall, spare, farmer-looking kind of man came to me once when I was sitting on the end seat of the rear car looking over the line. He said he had been told by the conductor that I was connected with the railway company, and he wished me to look at an invention he had made. With that he drew from a green bag (as if it were for lawyers' briefs) a small model of a sleeping-berth for railway cars. He had not spoken a minute before, like a flash, the whole range of the discovery burst upon me. 'Yes,' I said, 'that is something which this continent must have.' I promised to address him upon the subject as soon as I had talked over the matter with my superior, Thomas A. Scott.
"I could not get that blessed sleeping-car out of my head. Upon my return I laid it before Mr. Scott, declaring that it was one of the inventions of the age. He remarked, 'You are enthusiastic, young man; but you may ask the inventor to come and let me see it.' I did so; and arrangements were made to build two trial cars, and run them on the Pennsylvania Railroad. I was offered an interest in the venture, which, of course, I gladly accepted. Payments were to be made ten per cent per month after the cars were delivered, the Pennsylvania Railroad Company guaranteeing to the builders that the cars should be kept upon its line and under its control.
"This was all very satisfactory until the notice came that my share of the first payment was $217.50. How well I remember the exact sum; but two hundred and seventeen dollars and a half were as far beyond my means as if it had been millions. I was earning fifty dollars per month, however, and had prospects, or at least I always felt that I had. What was to be done? I decided to call on the local banker, Mr. Lloyd, state the case, and boldly ask him to advance the sum upon my interest in the affair. He put his hand on my shoulder, and said, 'Why, of course, Andie, you are all right. Go ahead. Here is the money.'
"It is a proud day for a man when he pays his last note, but not to be named in comparison with the day in which he makes his first one, and gets a banker to take it. I have tried both, and I know. The cars paid the subsequent payments from their earnings. I paid my first note from my savings, so much per month; and thus did I get my foot on fortune's ladder. It is easy to climb after that. A triumphant success was scored. And thus came sleeping-cars into the world. 'Blessed be the man who invented sleep,' says Sancho Panza. Thousands upon thousands will echo the sentiment, 'Blessed be the man who invented sleeping-cars.' Let me record his name, and testify my gratitude to him, my dear, quiet, modest, truthful, farmer-looking friend, T. T. Woodruff, one of the benefactors of the age."
Mr. Pullman later engaged in sleeping-car building, and Carnegie advised his firm "to capture Mr. Pullman." "There was a capture," says Mr. Carnegie, "but it did not quite take that form. They found themselves swallowed by this ogre, and Pullman monopolized everything."
While a very young man, Carnegie was appointed superintendent of the Western Division of the Pennsylvania Railroad. As superintendent he became the friend of Colonel Scott; and, together with some others, they bought several farms along the line of the road, which proved very valuable oil-lands. Mr. Carnegie says of the Storey Farm, Oil Creek, "We purchased the farm for $40,000; and so small was our faith in the ability of the earth to yield for any considerable time the hundred barrels per day which the property was then producing, that we decided to make a pond capable of holding one hundred thousand barrels of oil, which we estimated would be worth, when the supply ceased, $1,000,000. Unfortunately for us the pond leaked fearfully, evaporation also caused much loss; but we continued to run oil in to make the losses good day after day, until several hundred thousand barrels had gone in this fashion.
"Our experience with the farm may be worth reciting. Its value rose to $5,000,000; that is, the shares of the company sold in the market upon this basis; and one year it paid in cash dividends $1,000,000 – rather a good return upon an investment of $40,000. So great was the yield in the district that in two years oil became almost valueless, often selling as low as thirty cents per barrel, and not infrequently it was suffered to run to waste as utterly worthless.
"But as new uses were found for the oil, prices rose again; and to remove the difficulty of high freights, pipes were laid, first for short distances, and then to the seaboard, a distance of about three hundred miles. Through these pipes, of which six thousand two hundred miles have been laid, the oil is now pumped from two thousand one hundred wells. It costs only ten cents to pump a barrel of oil to the Atlantic. The value of petroleum and its products exported up to January, 1884, exceeds in value $625,000,000."
Within ten years from the time when Mr. Carnegie and his friends bought the oil-farms, their investment had returned them four hundred and one per cent, and the young Scotchman could count himself a rich man. Before this, however, he had entered the iron and steel industry, in which his great wealth has been made. With a little money which he had saved, he borrowed $1,250 from a bank, and, with five other persons, established the Keystone Bridge Works of Pittsburg, with the small capital of $6,000. This was a success from the first, and in latter years has had a capital of $1,000,000. It has built bridges all over the country, and structural frames for many public buildings in New York, Chicago, and other cities. From this time forward Mr. Carnegie's career has been a most successful one. He has become chief owner in the Union Iron Works, the Edgar Thomson Steel Works, the Homestead Steel Works, formerly a rival company, the Duquesne Works of the Allegheny Bessemer Steel Company, and several other iron and coke companies. The capital of these companies is about $30,000,000, and about twenty-five thousand men are employed.
"In 189 °Carnegie Bros. & Co., Limited," says the Engineering and Mining Journal for July 4, 1891, "had a capacity to produce 600,000 tons of steel rails per annum, or over twenty-five per cent of the total capacity of all the rolling-mills of the United States, while its products of steel girders, plates, nails, and other forms of manufactured iron and steel are greater than at any other works in this country, and exceed the amount turned out at the famous Krupp Works in Germany." The company has supplied the United States Government with a large amount of armor plates for our new ships, and also filled a large order for the Russian Government.
The Edgar Thomson Steel Works have an annual capacity of 1,000,000 gross tons of ingots, 600,000 gross tons of rails and billets, and 50,000 gross tons of castings. The Duquesne Furnaces have a yearly capacity of 700,000 gross tons of pig-iron; the Lucy Furnaces, 200,000 gross tons yearly; the Duquesne Steel Works, an annual capacity of 450,000 gross tons of ingots. The Homestead Steel Works have an annual capacity of 375,000 gross tons of Bessemer steel and ingots, and 400,000 gross tons of open-hearth steel ingots. The Upper Union Mills have an annual output of 140,000 gross tons of steel bars and steel universal mill-plates, etc.; the Lower Union Mills, an annual capacity of 65,000 gross tons of mill-plates, bridge-work, car-forgings, etc.
The industrious, ambitious boy was not satisfied merely to amass wealth. He had always been a great reader and thinker. In 1883 Charles Scribner's Sons published a book by this successful telegraph operator and iron manufacturer, "An American Four-in-Hand in Britain." The trip was suggested by Mr. Black's novel, "The Strange Adventures of a Phaeton," and extended from Brighton to Inverness, a distance of eight hundred and thirty-one miles.
Mr. Carnegie and his party of chosen friends made the journey by coach in seven weeks, from July 17 to Aug. 3, 1881, and had a most enjoyable as well as instructive trip. The Critic gives Mr. Carnegie well-merited praise, saying that "he has produced a book of travel as fresh as though he had been exploring Thibet or navigating the River of Golden Sand." The book is dedicated to "My favorite heroine, my mother," who was the queen dowager of the volume, and whose happiness during the journey seemed to be the chief concern of her devoted son.
This book had so cordial a reception that the following year, 1884, another volume was published, "Round the World," covering a trip made in 1878-1879; Mr. Carnegie having sailed from San Francisco to Japan, and thence through the lands of the East.