as soon as he begins to earn. I should say to young men, no matter how little it may be possible to save, save that little. Invest it securely, not necessarily in bonds, but in anything which you have good reason to believe will be profitable; but no gambling with it, remember. A rare chance will soon present itself for investment. The little you have saved will prove the basis for an amount of credit utterly surprising to you. Capitalists trust the saving young man: For, every hundred dollars you can produce as the result of hard-won savings, Midas, in search of a partner, will lend or credit a thousand; for every thousand, fifty thousand. It is not capital that your seniors require, it is the man who has proved that he has the business habits which create capital. So it is the first hundred dollars saved that tells.”
“What,” I asked Mr. Carnegie, “was the next enterprise with which you identified yourself?”
A FORTUNATE LAND PURCHASE.
“In company with several others, I purchased the now famous Storey farm, on Oil Creek, Pennsylvania, where a well had been bored and natural oil struck the year before. This proved a very profitable investment.”
“Were you satisfied to rest with these enterprises in your hands?” I asked.
“No; railway bridges were then built almost exclusively of wood, but the Pennsylvania Railroad had begun to experiment with cast iron for bridge building. It struck me that the railway bridge of the future must be of iron, and I organized, in Pittsburg, a company for the construction of iron bridges. That was the Keystone Bridge Works. We built the first iron bridge across the Ohio.”
His entrance to the realm of steel was much too long for Mr. Carnegie to discuss, although he was not unwilling to give information relating to the great subject. It appears that he realized the immensity of the steel manufacturing business at once. The Union Iron Mills soon followed as one of his enterprises, and, later the famous Edgar Thompson Steel Rail Mill. The last was the outcome of a visit to England, in 1868, when Carnegie noticed that English railways were discarding iron for steel rails. The Bessemer process had been then perfected, and was making its way in all the iron-producing countries. Carnegie, recognizing that it was destined to revolutionize the iron business, introduced it into his mills and made steel rails with which he was enabled to compete with English manufacturers.
THE HOMESTEAD STEEL WORKS.
INFANCY
His next enterprise was the purchase of the Homestead Steel Works—his great rival of Pittsburg. By 1888, he had built or acquired seven distinct iron and steel works. All the plants of this great firm are within a radius of five miles of Pittsburg. In no other part of the world can be found such an aggregation of splendidly equipped steel works as those controlled by Carnegie and his associates. It now comprises the Homestead Steel Works, the Edgar Thompson Steel Works and Furnaces, the Duquesne Steel Works and Furnaces, all within two miles of one another; the Lucy Furnaces, the Keystone Bridge Works, the Upper Union Rolling Mills, and the Lower Union Rolling Mills.
In all branches, including the great coke works, mines, etc., there are employed twenty-five thousand men. The monthly pay roll exceeds one million, one hundred and twenty-five thousand dollars, or nearly fifty thousand dollars for each working day.
“You believe in taking active measures,” I said, “to make men successful.”
“Yes, I believe in anything which will help men to help themselves. To induce them to save, every workman, in our company, is allowed to deposit part of his earnings, not exceeding two thousand dollars, with the firm, on which the high interest rate of six per cent. is allowed. The firm also lends to any of its workmen to buy a lot, or to build a house, taking its pay by installments.”
“Has this contributed any to the success of your company?”
A STRENGTHENING POLICY.
“I think so. The policy of giving a personal interest to the men who render exceptional service is strengthening. With us there are many such, and every year several more are added as partners. It is the policy of the concern to interest every superintendent in the works, every head of a department, every exceptional young man. Promotion follows exceptional service, and there is no favoritism.”
“All you have said so far merely gives the idea of getting money, without any suggestion as to the proper use of great wealth. Will you say something on that score?”
“My views are rather well known, I think. What a man owns is already subordinate, in America, to what he knows; but, in the final aristocracy, the question will not be either of these, but what has he done for his fellows? Where has he shown generosity and self-abnegation? Where has he been a father to the fatherless? And the cause of the poor; where has he searched that out? How he has worshipped God will not be asked in that day, but how he has served man.”
MR. CARNEGIE’S PHILANTHROPY.
That Mr. Carnegie has lived up, in the past, and is still living up to this radical declaration of independence from the practice of men who have amassed fortunes around him, will be best shown by a brief enumeration of some of his almost unexampled philanthropies. His largest gift has been to the city of Pittsburg, the scene of his early trials and later triumphs. There he has built, at a cost of more than a million dollars, a magnificent library, museum, concert hall and picture gallery, all under one roof, and endowed it with a fund of another million, the interest of which (fifty thousand dollars per annum), is being devoted to the purchase of the best works of American art. Other libraries, to be connected with this largest as a center, are now being constructed, which will make the city of Pittsburg and its environs a beneficiary of his generosity to the extent of five million dollars.
In his native land, Scotland, thrift is a virtue that is taught with the alphabet; and, when the twelve-year-old “Andy” Carnegie came to America with his father and mother, he was full of the notion of thrift and its twin brother, hard work.
CARNEGIE’S VIEWS ON THRIFT.
Once he wrote on the subject of thrift for a Scottish journal. He said:—
“The accumulation of millions is usually the result of enterprise and judgment, and some exceptional ability or organization. It does not come from savings, in the ordinary sense of the word. Men who, in old age, strive only to increase their already too great hoards, are usually slaves of the habit of hoarding, formed in their youth. At first they own the money they have made and saved. Later in life the money owns them, and they cannot help themselves, so overpowering is the force of habit, either for good or evil. It is the abuse of the civilized
