CARNEGIE SIDE-LIGHTS

Dominion, Volume 13, Issue 17, 15 October 1919, Page 2

CARNEGIE SIDE-LIGHTS

■ SECRETS 'OF SUCCESS.' " ' Andrew Carnegie used to 6ay ' that "pioneering doesn't pay," and yet he was in the larger sense the greatest pioneer in the development of the American iron a lid steel trade (says the New York "Evening Post"). He was quick to take hold of the problem, but he was'not necessarily ' the first. ' Carnegie rightly said: "Iron and steel' owe an unpayable debt of gratitude to James M. Swank.'' the great historian and statistician of the industry, and he would hardly dispute Mr. Swank's accuracy in' placing the Cnrnegie organisation the eleventh in his "list .of the early manufacturers ol Bessemer steel in the United States, as mny bo seen by reference to Swank's"lron in AH Ages,"' published in 1884, In that .review, Carnegie' Brothers and Co. are shown to'have made their first Bessemer steel' on August- 1875. Of the works that preceded theirs;' severalsurvive, but it was not long until the Carnegie organisation, was the largest manufacturer of Bessemer: steel in - the United States. .-.■■' ....

The .history of the steel trade lias been strewn with wrecks, soon forgotten. But that is only another way of saying that all the works that have survived .were managed by men who were more or-.less quick to adopt new methods and devices.' Carnegie was not' much quicker than others; but with his .instinctive knowledge of the'bsst time to take hold, he was able to make all his improvements on a large scale, and thus reap the larger benefits from them. ' '. Andrew Carnegie's greatest ability was admittedly in selecting men, and-putting them in tho right place. That presupposes, however, a knowledge of what kinds of men are required to make a complete organisation. In this ..GarneFrie did not neglect the financial end. Henry Phipps. his boyhood friend and partner for inany .years, had peculiar ability along that- line. • It was said he could keep a check in circulation longer than any Other.man in Pittsburg. Easily tho greatest financial achievement of the Carnegie, organisation was the financing of the change from wrought iron to mild .sted manufacture, in the decade of the nineties. This had to be done; largely in a period of industrial, depression. Scores and scores of iron mills succumbed.. adhering to their iron plants "'when there '.fas no longer a competitive' field. Tt was 'aid that at one time the Carnegie Steel Company's pape" was in every bank in the S l ate of Pennsylvania.

Carnegie's greatest hobby was alfio his chief.menns of success.- It was tonnage. He had keen appreciation of'the-factor, played by "overhead." Stupendous exBenditures were- niade for engines ■ and machinery, but whett installed - they were made to pay for themselves by producing tonnages that rivals had- not dreamed of compassing. He was followed, of course, but lie always maintained the.lead. It was. toiinnpo output 'per unit of equipment that . enabled -the American steel industry to outdistance its foreign rivals while payinsr much higher wages per man. The. Carnegie sales methods have been criticised, particularly by comparison with these of to-day! yet last December a movement was started in - the. steel trade to eliminate-the common _form,of contract, practically: an • option in many cases rind the movement was soonabaii doned. That system of selling'was originated 'by Jlr. Carnegie. It is reeojnised throughout tlio steel trade a* beimr a Carnegie policy. The object was to tie up consumers so that if they could use the tonnage it .would' be furnished: if they could not, no one was the. loser. Carnegie was a pvice-cutter. So were his competitors. He was simply n.moro astute price-cutter. He played the game of his time. ' Rut it would be' rash to assume that if he were living his life over again he would not play the came now according to-the rules of todav.