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Back to #437 The Tycoons: Carnegie, Rockefeller, Gould & Morgan.

Why Did Andrew Carnegie Burn Stalled Railroad Cars?

David Senra says Andrew Carnegie burned stalled railroad cars to clear the tracks. Shortly after Carnegie became superintendent of the Western Division, he shocked the other executives by doing it. The core job of the railroad was to keep traffic moving, and a stalled car was a bottleneck. He did the same thing over and over. He was not worried about the other executives' opinions. If he decided an action was right, he took it. Senra describes the habit as picking the objective, then cutting through conventions, competitors, or ordinary people in the way.

The rise had been fast. Tom Scott, one of the leading railroad executives of the period, mentored Carnegie, and the two shared an office while Scott ran the work by telegraph. By the early 1860s Carnegie was already a rich man. In a period when conflicts of interest were routine, Scott steered him into investments in companies that did business with the Pennsylvania Railroad, including a sleeping-car company and a bridge builder, and often advanced the purchase money.

Transcript

#437 The Tycoons: Carnegie, Rockefeller, Gould & Morgan ·

Founders

More from this episode

  1. How Were Carnegie, Rockefeller, Gould, and Morgan Different?David Senra, reading the preface of Charles R. Morris's The Tycoons, says Andrew Carnegie, John D.
  2. How Old Were Carnegie, Rockefeller, Gould, and Morgan When Lincoln Died?David Senra, reading Charles R.
  3. How Did John D. Rockefeller Buy the Clark Oil Refinery?David Senra, reading Charles R. Morris's The Tycoons, says John D.
  4. How Did Jay Gould Start With 50 Cents?David Senra says Jay Gould started with 50 cents.
  5. How Did Jay Gould Profit From Cornelius Vanderbilt's Cattle Rate?David Senra, reading Charles R.
  6. How Did John D. Rockefeller Beat Other Oil Refiners?David Senra says John D.
  7. What Made Andrew Carnegie's Steel Cheaper?David Senra says Andrew Carnegie's steel lost less than rival mills when prices had to fall, because the works with the newest equipment could cut prices and…
  8. Why Did John D. Rockefeller Buy the Strongest Refiners First?David Senra says John D. Rockefeller bought the strongest refiners first because taking the top few in a new territory made everyone else fall in line.

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