Dunfermline, Scotland – Birthplace of Andrew Carnegie

Andrew Carnegie statue erected in 1914 in Pittencrieff Park, Dunfermline
Photo credit: commons.wikimedia.org

While visiting Dunfermline we discovered the Andrew Carnegie Museum which was built around the humble cottage where Carnegie was born. The story of his youth makes his rise to become the richest man in the world* all the more intriguing.

The Carnegie’s shared the top floor of this cottage with another family.

In addition to telling the life story of Andrew Carnegie, the museum preserved the humble one room loft apartment where he was born and where his family cooked, ate and slept. Another family occupied the room across the hall. The first floor space was taken up by hand looms. Andrew’s mother, Margaret Carnegie, worked to hand weave towels and linens. Once textile factories mechanized the weaving process, the Carnegies fell on hard times.

Andrew Carnegie was born in this room, beds on the right, dining table to the left, no kitchen, no bathroom. Cooking was done at the fireplace.

Against the wishes of Andrew’s father, Margaret decided they should emigrate to Allegheny County, Pennsylvania where she had a sister. Andrew was 12 years old when they made the journey. Although education was not mandatory, Andrew had voluntarily attended school starting at the age of 8 and learned the basics. He put his sharp mind to use on his first job at age 15. He earned $1.20/week as a telegraph operator where he became invaluable by being able to translate Morse code messages by ear without having to write down the words.

Two of these hand looms occupied the cottage’s first floor.

Carnegie was hired as a personal secretary at $4.00/week at the age of 18 by Thomas A. Scott, owner of the Pennsylvania Railroad Company, one of the largest railroads in the country. Carnegie quickly rose to the role of superintendent of the Pittsburgh office. Carnegie’s relationship with Scott made possible an investment in Adams Express, which carried messages to corporate offices as they came in by telegraph. Margaret had to mortgage their house for $500 against its $700 value to make the payment. The investment paid off. Adams Express later grew to become American Express with Carnegie getting in on the ground floor.

The Carnegie steel mill at Homestead, PA, 1905
Photo credit: documentarist.com

The outbreak of the American Civil War called for rapid, large scale expansion of the railroads. Carnegie did not invest in railroads. He invested in the companies who supplied railcars, locomotives and parts to the railroads. Carnegie used money from his investments to open a steel plant using state-of-the-art technology to sell rails to the railroads. He also invested in iron mines, shipping and refineries. Eventually, Carnegie’s expanding steel empire threatened the future of other steel producers because he now owned the entire supply chain as well as the finished goods.

The library at Homestead, PA includes a swimming pool, a 1,000 seat theater and a bowling alley free for employees.
Photo credit: Explorepahistory.com

In order to stop him from overtaking the industry, the steel producers needed an investor who had the funds to buy him out. John Pierpont Morgan envisioned an integrated steel industry with efficiencies based on consolidation and minimizing waste. In 1901, Carnegie was 66 years old and ready to retire, so he accepted the largest corporate buyout in history.  J.P. Morgan paid Carnegie $480 million ($13.2 billion today) and U. S. Steel was born. Carnegie spent the next twenty years of his life funding public works including the building of over 2,800 public libraries. He endowed the Universities of Scotland with $10 million including scholarships for boys who could otherwise not afford a university education. The Carnegie Trust continues to endow numerous universities.

The World Court at The Hague, The Netherlands
Photo credit: muntr.org

As a pacifist, Carnegie had the Peace Palace built at The Hague in The Netherlands, which today houses the International Court of Justice (The World Court), and is still managed by the Carnegie Trust. The Trust also supported the Children’s Television Workshop. The Carnegie Museum displays Bert and Ernie puppets to commemorate the Trust’s support for the production of Sesame Street, now in its 44th year and broadcast in 140 countries.

Growing up in Dunfermline, Carnegie was excluded from entering the nearby private Pittencrieff Estate. In 1902, Carnegie purchased the 76 acre estate and gifted it to the people of Dunfermline. Today, as we depart Dunfermline, we pass Pittencrieff Park where now stands a statue of Andrew Carnegie, a self-made business mogul and philanthropist, a famous American and a favorite son of Scotland.

*Note: Using CPI cost-of-living statistics, Carnegie’s net worth would have been $13 billion today. Using GDP figures to determine the costs of goods and services at the turn of the century, Carnegie’s purchasing power would be comparable to $165 billion today.