37 pages • 1 hour read
Harold C. LivesayAndrew Carnegie And The Rise Of Big Business
Nonfiction | Biography | Adult | Published in 1975A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
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Andrew Carnegie
The central figure of Livesay’s biography, Andrew Carnegie occupies the bulk of the book. Livesay’s descriptions of Carnegie’s life mostly adhere to discussing his growth as an entrepreneur, with occasional episodes of Carnegie’s personal life. Carnegie is born in 1835 in Dunfermline, Scotland, to a poor family. As a youth, he absorbs the political ideals of Britain’s Radical movement through his father, Will. Carnegie’s family immigrates to Pittsburgh in 1848, where Carnegie immediately takes up work in a textile factory to support his family. Unhappy with factory work, Carnegie jumps at the opportunity to work as a telegraph messenger boy. Carnegie’s diligent work ethic sees him climb up the ladder of the telegraph office, until he finally lands a job working under Tom Scott on the Pennsylvania Railroad. Under Scott, Carnegie learns the ins-and-outs of running a modern corporation, and also learns to make a fortune through investing his money in various corporations and through speculative deals.
Longing to create something concrete out of his money, Carnegie opens his steelworks in 1872. The corporation modernizes the manufacturing industry through its emphasis on precise accounting, use of scientific knowledge, and vertical integration. Over the next three decades, Carnegie’s steelworks grows in size, becoming one of America’s most profitable businesses. Yet, Carnegie’s devotion to his business often harms his personal relationships, such as those with his mentor, Tom Scott, and his brother, Tom. In the wake of the violent Homestead Strike, Carnegie’s reputation as a friend of the workers is seriously damaged. Carnegie grows uneasy with his accumulation of wealth, and in 1889 publishes his famous article, “The Gospel of Wealth,” arguing that earning a fortune is only worthwhile if it is given back to society. After selling Carnegie Steel to J.P. Morgan, Carnegie follows through on the ideas he espouses in “The Gospel of Wealth,” purchasing numerous public institutions (such as libraries and theaters) with his millions.
Will Carnegie
Will Carnegie is Andrew Carnegie’s father, and primarily appears in the first three chapters of the biography. In Scotland, Will finds his work as a hand weaver obsolete due to the introduction of the power loom during the Industrial Revolution. After immigrating with his family to America, Will briefly takes up work in a textile factory but struggles to adapt, ultimately quitting and forcing his wife to support the family. Will’s inability to provide motivates Andrew Carnegie, who seeks to succeed in the industrial world where his father had failed.
Tom Scott
Tom Scott is one of Andrew Carnegie’s primary mentors. As a superintendent in the Pennsylvania Railroad, Scott hires Carnegie to lead the Railroad’s telegraph division. Carnegie develops a fierce loyalty to Scott, and Livesay writes that Scott serves as a “strong father figure” for Carnegie (45-46). Scott urges Carnegie to begin investing his money, and provides Carnegie with the $600 to make his first stock purchase, setting Carnegie on the path that earns him his fortune. While Scott and Carnegie remain business partners in numerous deals, their relationship sours when Scott asks Carnegie to endorse loans that Scott is unable to pay. Carnegie refuses, and though his refusal protects his business, Carnegie forever loses his friendship with Scott.
Henry Frick
Henry Frick first meets Andrew Carnegie as the owner of the Henry C. Frick Coke Company, which provides Carnegie Steel with the raw material of coke. Carnegie acquires the corporation and decides to keep Frick as partner, as he is impressed by Frick’s business capabilities. In 1889, Carnegie trusts Frick so much that he appoints Frick chairman of his company. However, Frick and Carnegie begin to differ over their views on labor: Carnegie believes in respecting labor unions, while Frick believes company owners should be able to do as they please on their property. During the 1892 Homestead Strike, Frick tries to break the strike by bringing in scab labor, resulting in an intensely violent conflict. Carnegie receives criticism for the Homestead Strike, and grows angry towards Frick. Carnegie’s anger is only worsened when Frick tries to arrange the sale of Carnegie Steel to the ill-reputed Moore Brothers, and as a result, Carnegie seeks to oust Frick from his corporation.
Tom Carnegie
Tom Carnegie is Andrew Carnegie’s younger brother, working under Carnegie in his many industries. Livesay describes Tom as “in Andy’s shadow since childhood, and [Tom] remained an unhappy satellite all his life” (123). Carnegie often leaves Tom in charge of his companies when Carnegie travels through Europe, and in eventually appoints Tom chairman of the company. As chairman, Tom is frequently subject to manipulations and abuse from Carnegie. Unable to handle Carnegie’s intense pressure, Tom develops a drinking problem in the early 1880s, which kills him in 1886.
