Carnegie Steel Company was a steel-producing company primarily created by Andrew Carnegie and several close associates to manage businesses at steel mills in the Pittsburgh, Pennsylvania area in the late 19th century. The company was formed in 1892, and was subsequently sold in 1901 in one of the largest business transactions of the early 20th century, to become a major component of U.S. Steel. The sale made Carnegie one of the richest Americans in history.
Creation
Carnegie began the construction of his first steel mill, the Edgar Thomson Steel Works, in 1872 at Braddock, Pennsylvania.[1] The Thomson Steel Works began producing rails in 1874.[2] 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. Carnegie alone estimated that 40% was returned on the investment, i.e., a profit of $40,000 from a $100,000 investment in the mill.[3]