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costly. Carnegie used the Bessemer method, a newly developed technique which cut steel production costs in half. At this time, Carnegie was the largest manufacturer of pig iron, producing 2,000 tons per day.

In 1901, Carnegie was 66 years old and preparing for retirement.

He organized his subsidiary companies into a joint cooperative with the probable intention of transitioning to his humanitarian stage. John Pierpont Morgan, one of America’s most prominent bankers and deal makers, was highly impressed with Andrew Carnegie’s cost e ciency and ability to make a pro t, year in and year out. With the Carnegie buyout and other steel producing competitors, J.P. is Morgan created U.S. Steel. giant merger combined resources, thus avoiding duplication and unnecessary waste. A milestone in business deals; it was the rst company in the world to have $1 billion in capital assets.

Carnegie sold his rm at a buyout price of 12 times the annual earnings of $480 million totaling $5,670,000,000, ($13.7 billion in 2011 dollars). Carnegie’s share of the purchase amounted to nearly $230,000,000 in 50-year gold treasury bonds netting 5% annually. Oddly, he did not want to see or touch these bonds, and they stayed in a safety vault in New Jersey awaiting their eventual disposal in the future.

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