The Ten-Million Dollar Question
By Ken Zurski
For a man whose mission it was to relinquish his entire fortune before his death, Andrew Carnegie still had plenty of money left when he passed in 1919 at the age of 83. That’s no indictment of a man who built a massively successful business, became the richest man in America, and devoted his later years to giving it all back. It was a noble thing to do. But Carnegie had made so much capital that even he found it difficult to allocate the funds sufficiently.
So he asked for help.
Carnegie grew up poor in Scotland, came to America, and amassed millions in the steel industry. Along the way, he made just as many enemies as dollars. Like many so-called tycoons of his time, Carnegie was accused of cutthroat practices which sacrificed workers’ rights for the bottom line. The Homestead Strike of 1892 was due to a dispute between steel workers at Carnegie’s Homestead, Pennsylvania plant and management which refused to raise workers’ pay despite a windfall in profits. The riot that followed is still one of the bloodiest labor confrontations in history. Ten men were killed in the melee and Carnegie who continued production with nonunion workers, was blamed for the uprising.
Carnegie viewed it differently than the workers. He believed that reducing production costs meant lower prices to consumers. Therefore, he theorized, the community as a whole profited, not the unions. It was a slippery slope. But, many asked, was it worth men dying for?
Carnegie, of course, thought of himself as a benefactor and did not apologize for becoming a wealthy man. When he retired, however, he made it clear that being rich was only relative: “Man must have no idol and the amassing of wealth is one of the worst species of idolatry! No idol is more debasing than the worship of money! Whatever I engage in I must push inordinately; therefore should I be careful to choose that life which will be the most elevating in its character.”
Carnegie didn’t hand out money haphazardly. He spent it on things and places that moved him. Among other worthy causes, the most prominent were funds for more schools – especially in low income communities – and the building or expansion of public libraries. In each case, he released the money only after specific demands were met, each one designed to make sure none of it went to waste. Carnegie had final approval.
In 1908, at the age of 72, with millions more left to give, Carnegie wrote a letter to people he admired. It was in effect an offer disguised as a question: “If you had say five or ten million dollars (close to 5-billion today) to put to the best possible use,” Carnegie asked, “what would you do with it?” Many of the correspondence were business leaders and some were presidents of institutions already bearing the Carnegie name. Most responded in kind that the money should be used to continue fellowships. The letters were an indication that the burden of giving away a fortune was weighing heavy on Carnegie’s mind.
“The fact is that after spending about $50-million on libraries, the great cities are generally supplied and I am groping for the next field to cultivate,” Carnegie wrote President Theodore Roosevelt. “You have a hard task as present but the distribution of money judiciously is not without its difficulties also and involves harder work than ever acquisition of wealth did.”
Carnegie wrapped up the letter by pointing out the absurdity of that last line. “I could play with that and laugh,” he noted.
In the end, of course, Carnegie left enough money behind to take care of his wife and daughter. His loyal servants and caretakers were awarded pensions and his closest friends received substantial annuities.
Carnegie gave away an estimated $350 million dollars, but for the rest, he had one final request. After the will segments were dived up, nearly $20-million remained in stocks and bonds.
He bequeathed that amount to the Carnegie Corporation organization he proudly founded, and which still exists today.
(Sources: Andrew Carnegie by David Nasaw; various internet sites)