By: Devin Fan and Wolfgang Mueller
Andrew Carnegie was one the greatest men that helped build America. He was a cunning businessman and knew how to build an empire, an empire of steel. His claim to fame was from vertical integration. He bought the mines, the refineries, the mills, and the transportation to cut down costs and make a bigger profit. This was a captain of industry move because the cost to make steel was lowered but the price to sell could be the same.
This is an example of Vertical Integration with oil. It is very similar to Carnegie's.
Another reason he was a captain of industry was because he lowered the price of steel, making it more affordable for lower income families. This also forced other steel companies to lower the prices and in result bankrupt them so Carnegie can buy them up and make a bigger steel empire.
This graph represents Carnegie's cost to make steel and price to sell steel
The final example that Carnegie was a captain of industry was because he was one of the first innovators to use the Bessemer process. This process with the vertical integration made the price of making steel at an all time low. The Bessemer process made steel making efficient and cheap so many people can use steel. This is example is a captain of industry move because he managed to make steel at a low cost while every other company couldn't do it.
This is what a furnace would look like back in Carnegie's time
Carnegie still affects us today. For example he has a fund that donates money every year. Also, bridges like the Eads bridge, and some very famous bridges. This is because he founded the keystone bridge company. Also, without Carnegie, there would be very little steel, because he learned how to mass produce it.