READING PASSAGE 1

PASSAGE 1

Read the text and answer questions 1-13

Andrew Carnegie: industrialist and philanthropist

The Scottish-born American industrialist and philanthropist Andrew Carnegie, who was the leader of the American steel industry from 1873 to 1901, donated large sums of his fortune to educational, cultural, and scientific institutions. He was born in 1835 in Scotland, the son of William Carnegie, a weaver, and Margaret Morrison Carnegie.

With the invention of weaning machines, William Carnegie's job disappeared, and eventually the family was forced into poverty. In 1848 the family left Scotland and settled in Pittsburgh, Pennsylvania, in the USA. William found a job in a cotton factory, but he soon quit to return to his home handloom, making linens and trying to sell them door-to-door. Andrew Carnegie also worked in the cotton factory, but after his father died in 1855, his strong desire to help take care of the family pushed him to educate himself. He became an avid reader, a theatergoer, and a lover of music.

Andrew Carnegie became a messenger boy in a telegraph office and later became a telegraph operator. Thomas A. Scott, superintendent of the western division of the Pennsylvania Railroad, made the eighteen-year-old his secretary. Carnegie was soon earning enough to buy a house for his mother. During the Civil War in the United States (1861-65), he helped organize the military telegraph system, but soon returned to Pittsburgh to take Scott's old job with the railroad.

Between 1865 and 1870 Carnegie made money through investments in several small iron mills and factories. He also traveled throughout England, selling the bonds of small United States railroads and bridge companies. Carnegie began to see that steel was eventually going to replace iron for the manufacture of rails, structural shapes, pipe, and wire. In 1873 he organized a steel rail company and continued building by cutting prices, driving out competitors, shaking off weak partners, and putting earnings back into the company. He never went public (sold shares of his company in order to raise money). Instead he obtained capital from profit, and when necessary from banks, and he kept on growing, making heavy steel alone.

In the 1880s Carnegie's purchases included a majority stake in the H C Frick Company in Pennsylvania that had vast coal interests, and also the Homestead mills business. Frick became his partner and eventually chairman of the Carnegie Company. Carnegie had moved to New York City in 1867 to be close to the marketing centers for steel products, while Frick stayed in Pennsylvania as the general manager. They made a good team. Behind the scenes, Carnegie planned new projects and the improvement of existing plants; Frick was the working director who watched over the mass-production programs that helped keep price down.

Carnegie spent his leisure time traveling. He also wrote several books, including Triumphant Democracy (1886), which pointed out what he thought were the advantages of life in the United States over the unequal societies of Britain and other European countries. To Carnegie, access to education was the key to America's political stability and industrial accomplishments. In 1889 he published an article, 'Wealth', stating his belief that the rich had a duty to use their money to improve the welfare of the community. Carnegie remained a bachelor until his mother died in 1886. A year later he married Louise Whitfield and they had one child together. The couple began to spend six months each year in Scotland, though Carnegie kept an eye on business developments and problems.

Carnegie's absence from the United States was a factor in the Homestead mills strike of 1892. After acquiring Homestead, Carnegie had invested in new plants and equipment, increased production, and automated many of the mill's operations, cutting down the number of workers that were needed. Carnegie believed that workers had a right to join unions and to bargain with management through their unions. He also recognized the right to strike, as long as the action was conducted peacefully. He viewed strikes as trials of strength, with peaceful discussion resolving the conflict. In contract talks during 1892, Frick wanted to lower the minimum wage because of the need for fewer workers. The union representing his workers would not accept this and organized a strike.

Following a violent confrontation that resulted in the death of eight workers, soldiers were sent in to restore order and Carnegie was criticized for his lack of action. In the 1890s Carnegie also began to meet with tougher competition from newer, bigger companies who were interested in controlled prices and sharing the market. Companies that he had sold to for years threatened to cut down their purchases unless he agreed to cooperate. These threats made him decide to fight back. He refused to enter into any agreements with other companies. Moreover, he decided to invade their territories by making similar products and by expanding his sales activities into the west of the country. Eventually, though, he decided to sell his company to the newly formed U.S. Steel Corporation in 1901 for almost $500 million. Carnegie's personal share was $225 million.

In retirement, Carnegie began to set up trust funds 'for the improvement of mankind'. He built some three thousand public libraries all over the English-speaking world and funded galleries, museums and concert halls in the US. He also built a group of technical schools, a research institute, and a foundation providing pensions for university professors. When Carnegie died in 1919, the continuation of his broad interests was put under the general charge of the Carnegie Corporation, with a donation of $125 million.

Questions 1-13

Questions 1-7

Complete the notes below. Write ONE WORD ONLY from the passage for each answer.

Carnegie's Life

1835-1855

- found employment in the same workplace as his

- educated himself through books, theatrical performances and

1855-1865

- worked in a telegraph office

- became to Thomas A Scott at Pennsylvania Railroad

1865-1870

- made investments in the US and England

- realised that changing engineering needs would require a greater demand for

1873

- managed a rail manufacturing business by:

+ reducing

+ restructuring

+ reinvesting profit and sometimes borrowing money from

1880s

- Frick and Carnegie became partners

- Carnegie's responsibilities:

+ arranging future and innovations for factories

- Frick's responsibilities: Production

Questions 8-13

Choose TRUE if the statement agrees with the information given in the text, choose FALSE if the statement contradicts the information, or choose NOT GIVEN if there is no information on this.

8 Carnegie believed that the USA offered more opportunities than European countries did.
9 A smaller workforce was required at the Homestead factory after Carnegie took control.
10 Carnegie prevented his workers from joining unions.
11 Carnegie blamed Frick for the violent workers strike in 1892.
12 In the 1890s Carnegie negotiated with his competitors.
13 Carnegie's provision of funds for libraries was limited to those in the United States.