United States Steel: A Corporation with a SoulCotter, Arundel
History
United States Steel: A Corporation with a Soul
Cotter, Arundel
United States Steel Corporation
In the early years of the steel industry the iron master did not
produce his own coke. He bought it. But as the industry became more and
more integrated it became obvious that the two operations must go hand
in hand if costs were to be kept down, and to-day most of the larger
manufacturers produce all the coke they need in their steel operations.
One of the first and certainly the most important mergers combining
steel and coke interests was that which brought together Andrew
Carnegie and Henry Clay Frick, and later resulted in giving to the
Steel Corporation, when it absorbed the Carnegie Steel Co., control of
the vast coal mines and numerous coke ovens originally owned by Frick
and his associates.
Long before his death, which took place December 2, 1919, Frick had
earned the right to be reckoned as one of the outstanding figures
in American industrial history. Like many other Americans who have
achieved great success he began life without advantages, starting his
business career as an errand boy and later occupying the position of a
clerk in a distillery at Mount Pleasant, Pa., in the middle of what is
now the big Connellsville coke-producing district.
At that time the American coke industry was in its infancy. The young
clerk perceived its possibilities and out of a very slender salary,
by frugal living and many privations, saved enough to make some small
investments in coal properties. Later, when the coke industry was
in the dumps, and most of those connected with it could see nothing
but disaster, Frick, convinced of a great future for coke, managed
to enlist the aid of a Pittsburgh banker and purchased a number of
properties at bargain prices, organizing H. C. Frick & Co., which later
became the H. C. Frick Coke Co. In a few years the clerk had risen to
be the dominating figure in the coke trade.
When Carnegie decided that economical manufacture of steel implied
the acquisition of coke properties he secured control of the Frick
Company and later negotiated a partnership with Frick, merging the two
companies. Eventually, after a lawsuit and much bitterness between the
two men, Frick and Carnegie separated. But when the Steel Corporation
took over the Carnegie Company, Frick was induced to become a member
of the Finance Committee, and it is generally recognized that his
financial acumen was of enormous assistance to the big Corporation in
the days before it had established itself firmly. Frick remained a
director of the Corporation and one of the most influential members of
its Finance Committee until the day of his death.
Frick left an enormous fortune. Although he left substantial legacies
to his children and others, the mass of fortune was distributed among
public institutions for the good of the community.
Public-domain text, read in full here on John Shaqi.
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