Image provided by: University of Nebraska-Lincoln Libraries, Lincoln, NE
About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (Jan. 4, 1903)
TI How Andrew Carnegie Chose His Lieutenants 1 v i j , , . - ,,.-, " I !.,. . , - l -- ,iiLAL''..l W. E. COREY, PRESIDENT CARNEGIE STEEL. COMPANY. IV. W. BLACKBURN, SECRETARY-TREASURER CARNEGIE STEEL. CO ANDREW M. MORELAND. (Copyright, liw3. by Thomas U. Vl.k.) ' ANDREW CARNEGIE was recently I bluntly asked the question: I What influenced you most in the selection of your lieutenants iimSitsU i Kieel Industry ?" "Apparently trivial incidents," was the laconic reply. Then, after a moment's pause, ho added, by way of explanation: "I watched young men with whom I came in contact, and whenever I ran across one who, all unconsciously, by some small action or word uttered in ordinary conver sation, made me feel that he had the qualities demanded in my business, I gave him a chance to prove that he really had them. And when he did, then he became one of my lieutenants, and in return for his assistance I endeavored to let him havt a fair share In the profits of my business." This, in brief, is the story of the se- lection and making of the so-called Carne gie group of millionaires. Charles M. Schwab is one of these men. James C.ayley, vice president of the United States Steel corporation, Is another. Thomas Lynch, successor of H. C. Frick, at the head of the world's biggest coke com pany, is a third; Mr. Frick himself a fourth, and William E. Corey, the youthful president of the Carnegie company anil the Carnegie Steel company, a fifth. Then there are H. P. Hope. Daniel M. Clemson, A. R. Peacock, F. T. F. Lovejoy, W. W. Black burn and Thomas Morrison, a Carnegie cousin brought over from Scotland and given a humble position in a mill yard; Andrew M. Moreland, George Lauder, Al bert C. Case and Joseph E. Schwab, brother of Charles; Lawrence Phipps, who, though a nephew of Henry Phipps, Mr. Carnegie's lifelong partner, had to start at the bottom nnt work im with men who had no rich relatives; A. R. Hunt. W. E. McCausland. who began life as a messenger in a mer cantile agency office, and many others. The incident that led Mr. Carnegie to select A. R. Peacock, formerly holding the Important post of purchasing agent of the Carnegie properties, as a lieutenant. Is typi cal of the manner in which the majority of the members of the famous group were picked out. Mr. Peacock owes his millions to a re. mark that his last employer liked. Twelve years ago Mr. Peacock was sales man for a New York decorating house. At that time Mr. Carnegie arrived In the metropolis to see about some decorating that he wanted done in the Fifth avenue mansion that he recently discarded for the more magnificent one further up the ave nue. He asked the firm that had Mr. Pea cock In its employ to send him samples of g. wall paHT. and Mr. Peacock was assigned to take them. The salesman's manner of displaying the samples and conducting business so favor ably impressed the prospective customer that a few days later, when he wanted to Inspect more samples of wall paper, he ex pressly requested that Mr. Peacock be sent with them. His second talk with the Bales man pleased Mr. Carnegie more than the first, and Just as Mr. Peacock was leaving, the millioi a're said, apropos of nothing that had gone before: "Young man, you will be rich some day." Mr. Peacock laughed. "Mr. Carnegie," he answered, "if I thought so, I'd be willing to give the man who helped me to riches a liberal discount." Mr. Carnegie's reply all but took away his hearer's breath: "I'll take you at your word. Go to your employers, resign at once and come with me." Mr. Peacock did as he was bid, and. judg ing by results, he gave Mr. Carnegie a lib eral discount in work, for his fortune Is conservatively estimated at $lu,OitO,iioO. H. C. Frick not long ago named Mr. Pea cock ns one of the thirty men in Pittsburg who are worth this sum and over. He has recently moved into a new house which cost $1,11(1(1, mm and which is said to contain the finest interior woodwork of any private residence in America. Daniel M. Clemson is another of these fortunate two score men. He got the good will of Mr. Carnegie and, ergo, his mil lions, because he could shoe a horse well and wasn't afraid of work. Mr. Clemson was born on a farm In cen tral Pennsylvania. When he was 0 years old he was apprenticed to a blacksmith. The recompense was all that he could eat and an occasional suit of homespun. Ho blossomed out as an accomplished "smithy" on his nineteenth birthday. As his pay was still his board, he went out into the world to seek his fortune. He drifted to one of Carnegie's mines. "What can you do?" asked the superin tendent. "Shoe horses," was the reply. Mr. Clemson shod horses so well and so many In a day that when Mr. Carnegie was inspecting tho mine, the superintendent sail: "Thai fellow shoeing horses over there is the fastest and best man in the shop. He's not afraid of work either; he'll work all day and all night if necessary. "(Jive him a chance In the mechanical department," ordered Mr. Carnegie. Mr. Clemson soon had charge of all the mining machinery. Next he became the mine superintendent. In 1S85 he was transferred to Pittsburg. Now he has charge of the 11.') river and lake vessels owned by the Steel trust and Is head of a natural gas company which has under lease W, 0(10 acres, operates 130 wells and produces 40,000,000 cubic feet of gas each day in the year. He still lacks a year of being ,"o. Like Hie great majority of Pittsburg men of money, he is compara tively young. Andtew M. Moreland, former secretary of the Carnegie company, owes his present financial position to his ability to send and receive telegraph messages with lightning-like rapidity and unerring accu racy. This accomplishment softened Mr. Cart egie's heart toward him, for Mr. Car negie, himself a splendid telegrapher, thoroughly appreciates one. Therefore, Mr. Moreland did not long remain an oper ator on the private line conned tug the Carnegie plants with one another and all with the New York office (f the great iron master. First thing he knew he was ris ing tapldly in the steel business. Like Mr. Moreland, W. W. Blackburn, the present secretary and treasurer of the Carnegie company and also second vice president of the Carnegie Steel company, started in and attracted attention without the aid of outside influence. Mr. Black burn had been a clerk in a country store In central Pennsylvania before he went to the Carnegie mills and there he had picked up a knowledge of business principles that shortly caused his new employer to see evidences of splendid business acumen in him. After Hint this poor boy of a poor farmer went forward gradually and when Mr. Moreland resigned the secretaryship of the Carnegie company he succeeded to the position. He and Mr. Moreland can truthfully be called boy millionaires, for each is still on the shady side of middle age. Like the rest of Carnegie's lieutenants, these two ambitious employes had to work hard to keep the good will of their em ployer and get a share of the profits. How closely the Carnegie gr.up was kept vcrsy down to business Is shown by the follow- succi ing incident: Mr. Moreland, when auditor of tho com pany, was summoned to New York to con sult with his commercial master. At din ner Mr. Carnegie set wine before his guest. "No, thank you, I don't drink," said Mr. Morela nd. loiter on Mr. Carnegie brought out the cigars. "No, thank you. I don't smoke." said Mr. Moreland. Still later in the evening Mr. Carnegie proposed a game of cards. "No, thank you, I don't play cards," said Mr. Moreland. Mr. Carnegie looked nt his guest. "Tell me why you don't do any of these things?" he drily requested. "You've kepi me working too hard all these years; I've had no lime to learn," was the reply. Mr. Carnegie thought a moment. "Andy," ho said, "I'm going to give you a three months' vacation. Now, for heaven's sake, go off somewhere and learn to do something besides work." The Carnegie company one day adver tised in the newspapers for a bookkeeper. t- T. F. I-ovejoy, while working In a laun dry, had plckd up a good knowledge of ac counting, and so, when he read the "want ad," decided to apply for the position. By good luck he managed to arrive at the man ager's office ahead of all other applicants, and. after a short interview, was given the position. The lucidity cf his balau.o sheets al once attraded attention, and then step by step he began rising until he attained the secretaryship. This he held until he took sides with Mr. Frick In his rontro- if f I t MIS 7 1 , i MRS. B. S. N. M. BAKER AND MRS. , FLORAL PARADE. SOLOMON LUNA IN MRS. It KER S PRIZE WINNING TURNOUT AT THE ALBUQUERQUE, with Mr. Carnegie, and then he was ded by Mr. Moreland. Mr. Lovejoy Is said to be In the $IO,ooo,( and over class. II. P. Hope, who, although not quite so young In years as Mr. Blackburn, Is si ill on the Kiintty tilde of middle age, was se lected by Mr. Carnegie to be the company's first stenographer because he presented a clean, keen appearance and had the reputa tion among his associates of being (lose of mouth. In Ibis position Mr. Hope came Into intimate and confidential relations with Mr. Carnegie and his proven ability to guard business secrets gave li I ill his golden oppor tunity, which has yielded him :i.imo,nnn. When Albert C Case, now of New York, where many of Pittsburg's moneyed men have moved In lale years, attracted Mr. Carnegie's al tent Ion, he was connected with the Pittsburg office of ft big mercantile agency. One day he gave the Carnegie com pany a piece of Informal ion that saved it several thousand dollars. Shortly after thai he was ahked how he would like to become I he head of I he credit department of the Carnegie plants. For five years thereafter he handled the credits and In that time only '.i-lonoths of 1 per cenl of the millions of dollars Involved was lost. Only a few years ago William E. Corey, president of tho Carnegie company and (he Carnegie Steel company and frequent ly talked of as a future president of the United States Steel corporation, was push ing a wheelbarrow In the yards of one of the Carnegie mills In Braddock. He wheeled so much more Iron In a day than tho men at his elbows that he was soon made a foreman over them. Then his em ployers noticed that he got three times as much work out of his men as the other foremen and at the same time tho men worked harder without any grumbling and swore by their new and youthful boss. Corey was straightway picked out by Mr. Carnegie as a promising valuable acquisi tion and given constantly widening oppor tunities. He worked hard, studied at night to Im prove his public school education and In tlmo became an expert chemist and armor plate authority. He was made supcrintend- nt of this mill and that department and Invariably Increased the output. When Mr. Schwab resigned to become president of the steel trust Mr. Corey was I he only man considered for his successor at the head of the Carnegie company ami the Carnegie Steel company. Thomas Lynch, the young head of th world's biggest coke company, was partly brought forward by Mr. Carnegie, although Mr. Frick found him. But afler the latter had done this, Mr. Carnegie, recognizing Mr. Lynch's worth, helped lo place advance ment In his way. Mr. Lynch went to Pittsburg from a country town in southwestern Pennsyl vania, where his father, a hard working Irishman, had put him through the com mon school and started clerking in a wholesale grocery store. Afler a few weeks' trial he was discharged. He drifted lo the little coke town of Broad Ford, near his home, and became a clerk In the .company store of (). A. Tinslman, who had coke ovens In the nelghbr rhood. When Mr. Frick secured tho Tinslman property a few months later he put Mr. Lynch in charge if (he store because, forsooth, he was its only clerk. Mr. Lynch made the store pay and as a result he was told to superintend I lie various company stores of his em ployer. Soon he was superintendent of all the coal mines operated by the Frick Carnegie interests in the Connellsvllle coke region. About this time foreigners were brought Into the coke regions and all sorts of (Continued on Eighth page )