Mr. Pullman later engaged in sleeping-car building, and Carnegie advised his firm "to capture Mr. Pullman." "There was a capture," says Mr. Carnegie, "but it did not quite take that form. They found themselves swallowed by this ogre, and Pullman monopolized everything."
While a very young man, Carnegie was appointed superintendent of the Western Division of the Pennsylvania Railroad. As superintendent he became the friend of Colonel Scott; and, together with some others, they bought several farms along the line of the road, which proved very valuable oil-lands. Mr. Carnegie says of the Storey Farm, Oil Creek, "We purchased the farm for $40,000; and so small was our faith in the ability of the earth to yield for any considerable time the hundred barrels per day which the property was then producing, that we decided to make a pond capable of holding one hundred thousand barrels of oil, which we estimated would be worth, when the supply ceased, $1,000,000. Unfortunately for us the pond leaked fearfully, evaporation also caused much loss; but we continued to run oil in to make the losses good day after day, until several hundred thousand barrels had gone in this fashion.
"Our experience with the farm may be worth reciting. Its value rose to $5,000,000; that is, the shares of the company sold in the market upon this basis; and one year it paid in cash dividends $1,000,000—rather a good return upon an investment of $40,000. So great was the yield in the district that in two years oil became almost valueless, often selling as low as thirty cents per barrel, and not infrequently it was suffered to run to waste as utterly worthless.
"But as new uses were found for the oil, prices rose again; and to remove the difficulty of high freights, pipes were laid, first for short distances, and then to the seaboard, a distance of about three hundred miles. Through these pipes, of which six thousand two hundred miles have been laid, the oil is now pumped from two thousand one hundred wells. It costs only ten cents to pump a barrel of oil to the Atlantic. The value of petroleum and its products exported up to January, 1884, exceeds in value $625,000,000."
Within ten years from the time when Mr. Carnegie and his friends bought the oil-farms, their investment had returned them four hundred and one per cent, and the young Scotchman could count himself a rich man. Before this, however, he had entered the iron and steel industry, in which his great wealth has been made. With a little money which he had saved, he borrowed $1,250 from a bank, and, with five other persons, established the Keystone Bridge Works of Pittsburg, with the small capital of $6,000. This was a success from the first, and in latter years has had a capital of $1,000,000. It has built bridges all over the country, and structural frames for many public buildings in New York, Chicago, and other cities. From this time forward Mr. Carnegie's career has been a most successful one. He has become chief owner in the Union Iron Works, the Edgar Thomson Steel Works, the Homestead Steel Works, formerly a rival company, the Duquesne Works of the Allegheny Bessemer Steel Company, and several other iron and coke companies. The capital of these companies is about $30,000,000, and about twenty-five thousand men are employed.
"In 1890 Carnegie Bros. & Co., Limited," says the Engineering and Mining Journal for July 4, 1891, "had a capacity to produce 600,000 tons of steel rails per annum, or over twenty-five per cent of the total capacity of all the rolling-mills of the United States, while its products of steel girders, plates, nails, and other forms of manufactured iron and steel are greater than at any other works in this country, and exceed the amount turned out at the famous Krupp Works in Germany." The company has supplied the United States Government with a large amount of armor plates for our new ships, and also filled a large order for the Russian Government.
The Edgar Thomson Steel Works have an annual capacity of 1,000,000 gross tons of ingots, 600,000 gross tons of rails and billets, and 50,000 gross tons of castings. The Duquesne Furnaces have a yearly capacity of 700,000 gross tons of pig-iron; the Lucy Furnaces, 200,000 gross tons yearly; the Duquesne Steel Works, an annual capacity of 450,000 gross tons of ingots. The Homestead Steel Works have an annual capacity of 375,000 gross tons of Bessemer steel and ingots, and 400,000 gross tons of open-hearth steel ingots. The Upper Union Mills have an annual output of 140,000 gross tons of steel bars and steel universal mill-plates, etc.; the Lower Union Mills, an annual capacity of 65,000 gross tons of mill-plates, bridge-work, car-forgings, etc.
The industrious, ambitious boy was not satisfied merely to amass wealth. He had always been a great reader and thinker. In 1883 Charles Scribner's Sons published a book by this successful telegraph operator and iron manufacturer, "An American Four-in-Hand in Britain." The trip was suggested by Mr. Black's novel, "The Strange Adventures of a Phaeton," and extended from Brighton to Inverness, a distance of eight hundred and thirty-one miles.
Mr. Carnegie and his party of chosen friends made the journey by coach in seven weeks, from July 17 to Aug. 3, 1881, and had a most enjoyable as well as instructive trip. The Critic gives Mr. Carnegie well-merited praise, saying that "he has produced a book of travel as fresh as though he had been exploring Thibet or navigating the River of Golden Sand." The book is dedicated to "My favorite heroine, my mother," who was the queen dowager of the volume, and whose happiness during the journey seemed to be the chief concern of her devoted son.
This book had so cordial a reception that the following year, 1884, another volume was published, "Round the World," covering a trip made in 1878-1879; Mr. Carnegie having sailed from San Francisco to Japan, and thence through the lands of the East. As he starts, his mother puts in his hand Shakespeare in thirteen small volumes; and these are his company and delight in the long ocean voyage. Through China, India, and other countries, he observes closely, learns much, and tells it in a way that is always interesting. "Life at the East," he says, "lacks two of its most important elements,—the want of intelligent and refined women as the companion of man, and a Sunday. It has been a strange experience to me to be for several months without the society of some of this class of women,—sometimes many weeks without even speaking to one, and often a whole week without even seeing the face of an educated woman. And, bachelor as I am, let me confess what a miserable, dark, dreary, and insipid life this would be without their constant companionship."