Personal Finance, Week 4: Andrew Carnegie

Andrew Carnegie was born on November 25, 1835, in Dunfermline, Scotland. He was William Carnegie’s and Margaret Morrison’s first born son. When the country of Scotland was in starvation William Carnegie and his family left Scotland and moved to Pittsburgh, Pennsylvania in 1848 in search of a better life. At age 13 he got a job at a cotton mill. He was working for 12 hours a day, 6 days a week, making $1.20 a week. In 1849 he became a telegraph messenger boy for $2.50 a week. According to Wikipedia “He was a hard worker and would memorize all of the locations of Pittsburgh’s businesses and the faces of important men. He made many connections this way. He also paid close attention to his work and quickly learned to distinguish the different sounds the incoming telegraph signals produced. He developed the ability to translate signals by ear, without using the paper slip”. When he was 18 years old he got a job at the Pennsylvania Railroad as a secretary/telegraph operator and got paid $4.00 a week. On December 1, 1859, when Carnegie was 24 years old he became superintendent of the Western Division of the Pennsylvania Railroad and got paid $1,500 a year. For four years Carnegie was superintendent and in 1865 he left to focus on his own business ventures. In 1872 the construction of Carnegie’s first steel mill began at Braddock, Pennsylvania. According to Wikipedia “By a combination of low wages, efficient technology, infrastructure investment and an efficient organization, the mill produced cheap steel, which sold for a large profit in the growing markets of industrial development”. In 1901 Carnegie sold his business, the Carnegie Steel Company, to J. P. Morgan for $480 million which ultimately made him the wealthiest man of his time on the planet.