Industrial Leaders and Their Impact

[dramatic music] NARRATOR: Previously on "The Men Who Built America." Bruised and battered following the long Civil War, the country has emerged stronger than ever. American railroads have become the largest companies in the world. And through shear force-- Buy everything you can. NARRATOR: --Cornelius Vanderbilt has built the biggest. We're gonna watch them bleed. [dramatic music] NARRATOR: But a new industry emerges to challenge the railroads. Led by John D. Rockefeller, the age of oil begins. Soon, Vanderbilt and the other railroads see oil as an opportunity. ROCKEFELLER: You want a cartel between oil and railroads. NARRATOR: But as railroad men like Tom Scott and his protege Andrew Carnegie take on big oil, Rockefeller declares war on the railroads-- Shut them down. NARRATOR: --and brings the industry to its knees. [MUSIC - BLUES SARACENO, "SAVE MY SOUL"] (SINGING) When I got to Memphis, I put my old baby down. He said, I can't take you to heaven, I can't save your soul, I can't promise forever. Hey, yeah, I got my heart in your hands. I can't feel, feel my soul. [rain pattering] PRIEST: If the gathered here would now join me in the reciting of the Lord's Prayer. [birds screeching] Our Father, who art in heaven, hallowed be Thy name. Thy kingdom come, Thy will be done on Earth as it is in heaven. Give us this day our daily bread and forgive us in our trespasses as we forgive those who trespassed against us. And lead us not into temptation but deliver us from evil. For Thine is the power and the glory, forever and ever. Amen. [dramatic music] NARRATOR: Andrew Carnegie's mentor is buried on a rainy day just outside of Philadelphia. He dies a broken man, defeated and humiliated at the hands of John D. Rockefeller. The loss is an enormous blow to Carnegie. Without Tom Scott, Carnegie would be nothing. Sir. Thanks. NARRATOR: At the age of 12, Andrew Carnegie begins working for a local railroad in Pittsburgh. There, he meets the company's president, Tom Scott. SCOTT: Andy. NARRATOR: Scott takes a liking to young Carnegie hiring him as his personal assistant. Now, take this and this to the division superintendent Yes, sir. This is for you, sir. Oh, Thank you. DAVID NASAW: He never expected to work at 12 years old. He wanted to go to school. He wanted to grow up. But the family had absolutely no way of surviving without sending him to work. [music playing] HW BRANDS: Andy is the man of the household. He realizes fairly early on that he's smart. He discovers in himself an ambition. And when Andy Carnegie showed the intelligence, showed the nerve to take on some of the responsibilities, Scott realized that this was somebody to cultivate, somebody to nurture. NARRATOR: Tom Scott quickly advances Carnegie through the ranks. Like most young people who get breaks, luck has a lot to with it, and timing. And the second factor besides timing is that, as a young man, usually all of us would admit that there was a mentor, a benefactor. And when an older person who you respect and admire has confidence in you, it's a great booster to your own self-confidence. NARRATOR: By age 24, Carnegie is promoted to manager of the company working closely with Scott to oversee the railroad's expansion west. [metal clanging] [geese quacking] SCOTT: So I bought 100,000 shares at $10 a share before news of the contract came out. When the issue became public, the shares doubled in value. The next day, you know what I did? I sold them. I didn't have to build a thing. The key is westward expansion. CARNEGIE: Yes, sir. [breathing heavily] Here. This is where I want the bridge. Right here. You think you can do it? Yes, sir. I know a good designer, James Eads. He's crazy but he's a genius. A bridge builder, is he? No, but he's quick and he's cheap. He can do anything. Come. NARRATOR: The bridge Scott has outlined will be the largest in America. The problem is, Carnegie has no idea how to build it. A bridge spanning the Mississippi River would connect east to west like never before. The key to success for any railroad is getting across the Mississippi River. Once you get across the Mississippi River, you can move west. The question is, how do you get across the Mississippi River? NARRATOR: The bridge will have to be over a mile long. One in four bridges built at the time fail. And nobody has built a rail bridge this big. But Carnegie knows there's no reward without risk. He invests everything he has into the bridge. HW BRANDS: Andy Carnegie stepped up. He decided he could do it. One striking thing about Carnegie, and this is true of the great entrepreneurs, they're willing to take risks. They're willing to roll the dice and bet, in later days, the whole corporation or, in this case, bet his career. [music playing] It's no good. Why? We can't block steamboat traffic. We've been through this. Show me the cantilever one again. It's not going to withstand the Mississippi current. So make it stronger. It's impossible. The combined forces from the passenger traffic, rail freight, and the river current will exceed the tensile strength of iron. The bridge will collapse. Nothing's impossible. STEVE CASE: You have to be patient and have perseverance. And then having a sense of where you want to go and having the passion to still believe in your idea even when everybody else is saying, well, why are you wasting your time on this? Obviously, it's not happening. But you know it's going to happen. You just don't-- you never give up on that idea. [church bell tolling] [sighs] MAN: How am I supposed to make any money? They're worth more than a dollar. MAN: 5 cents, final offer. All right. [metal clanging] [hooves clomping] It's not going to withstand the Mississippi current. So make it stronger. Maybe if it was made out of steel. Nothing's impossible. [machinery banging] NARRATOR: Steel is the strongest material ever made, created by mixing iron with carbon at over 2,000 degrees. The problem is, it's extremely expensive and difficult to mass produce. Because steel is so rare, it's only used to make small items-- forks, knives, and jewelry. No one has ever tried to use steel to build a structure this big, until now. He's looking into the future. He looks across the Mississippi and he sees a bridge. And he's able to see that future and then willing to have enough confidence in his vision to put everything he's got into it, and he's willing to convince others that he knows what that future is going to be. NARRATOR: In order to complete the bridge, Carnegie needs to find a way to make a massive amount of steel. He spent a lot of time traveling. He would go to steel mills. He would meet with chemists to figure out, how do you make this steel? NARRATOR: English inventor Henry Bessemer has created a device that cuts the time to manufacturer a single steel rail from two weeks to 15 minutes. Carnegie understands the value of the new technology and begins to adapt it. Every business has some uniqueness, either unique talent, unique product, unique capacity. And the trick is to find it and capitalize on it. NARRATOR: With the steel in place, Carnegie is able to begin construction. [exciting music] At just 33, Andrew Carnegie is poised to realize the impossible-- building the first major bridge to span the Mississippi River, uniting America. But Carnegie's decision to use steel has proven costly. He's already two years behind schedule and expenses are mounting. [slow music] DEBT COLLECTOR 1: "Dear Mr. Carnegie. Our records show that we have not received your payment of $35,000 which was due--" "Dear Mr. Carnegie. I'm writing to notify you that despite numerous efforts to obtain final payment for the above invoice, I have been unsuccessful--" DEBT COLLECTOR 2: "This letter will serve as formal notice to you that you are in default of your obligation to pay the sum of $59,000 for steel delivered to you." DEBT COLLECTOR 3: "I must now accelerate the collection efforts in accordance with--" [interposing voices] DEBT COLLECTOR 1: "And you will be able to settle this outstanding amount immediately." DEBT COLLECTOR 2: "We will have no alternative but to commence legal proceedings against you." [rope creaks] I guarantee you, if these guys were alive today, they wouldn't be telling you about their successes. They'd be telling you about their early failures or the places they almost failed. That's the great motivator, and you have to be able to embrace that. If you can't embrace both failure or the possibility of failure or the tremendous fear of failure, you can't be wildly successful. It's an axiomatic truth. NARRATOR: With no money left, Carnegie is forced to bring construction to a halt. His dream has become a nightmare, but he's not going down without a fight. [music playing] The birth of modern America is well underway. Trains now touch all four corners of the continent. Homes across the nation are lit at night. And the country's most ambitious construction project is in progress on the banks of the Mississippi River led by Andrew Carnegie. Carnegie has insisted on building his bridge out of steel, an unproven material with huge costs. Construction is drastically behind schedule and dangerously over budget. Carnegie is under mounting pressure. CARLY FIORINA: The difference between people who succeed and people who fail, I think, in many cases, it's not fear. Everyone experiences fear. The difference is, what do you do with your fear? Do you work to overcome it or do you let it defeat you? And I think that is actually what distinguishes very successful people from others. NARRATOR: Desperate, Carnegie reaches out to investors looking for an infusion of cash. CARNEGIE: You'll be glad to learn that the building of the St. Louis bridge is progressing smoothly. I am convinced that steel is the future. However, obtaining such a large quantity of steel is proving to be difficult causing us some delays. It is also proving to be extremely expensive. My forecast shows that we will require another million dollars before the year is out, but I have no doubt that in time the people will come to see the bridge as the eighth wonder of the world. Yours sincerely, Andrew Carnegie. NARRATOR: Carnegie's last-minute pitch works. He secures the financing he needs. And finally, after four years, the bridge is complete. The results are epic. But Carnegie now faces a new problem. In St. Louis, one of the real problems was convincing people that the bridge wasn't going to fall. I mean, nobody had ever seen bridges like this anywhere. NARRATOR: Carnegie sees all the possible uses for steel. But before he can realize the material's potential, he needs to convince the public of its strength. And he has a plan to do just that. A popular superstition at the time holds that an elephant won't cross an unstable structure. [dramatic music] DAVID NASAW: The day the bridge opens, Carnegie, who is a master publicist, sets up a parade across the bridge that's led by an elephant. [cheering] [elephant roaring] NARRATOR: It's an incredible gamble, but Carnegie hopes if the elephant crosses, the people will follow. [cheering] DAVID NASAW: As the people of St. Louis look at this bridge, they see that it can sustain whatever weight's gonna be put on it. NARRATOR: When the stunt succeeds, Carnegie gets more requests for his steel than he can possibly handle, and his biggest customer is an industry he knows well. [train horn blowing] The railroads are looking to replace their bridges and rails with steel, but Carnegie can't produce enough of the new material to fill all the orders. He needs to increase his capacity. And to do that, he needs to raise additional funds, so he turns to his old mentor Tom Scott. With his help, Carnegie raises over $21 million in today's money. And with it, he builds his first steel plant. DAVID NASAW: He sees the future, and he is willing to invest where few other American entrepreneurs are willing to invest, in these gigantic new plants. NARRATOR: Sprawled over 100 acres just outside of Pittsburgh, Carnegie's steel mill is the largest in the nation. Capable of rolling out 225 tons of steel a day. You have to believe, if you're Carnegie, that you're going to have multiple years of growth where steel is important. The faith and optimism that someone like Carnegie had is just off the charts versus what we see now. NARRATOR: With the new plant, Carnegie can supply as much steel as the country needs and make himself a fortune. But Carnegie's timing couldn't be worse. After years of overbuilding, the railroads are suddenly struggling to stay profitable. HW BRANDS: There were too many railroads at the time. There wasn't enough traffic to sustain them. NARRATOR: With the railroads in dire need of cargo, John Rockefeller sees an opportunity and negotiates better rates for shipping his oil. But the struggling railroads quickly realize their business won't survive and go back on their word causing Rockefeller to pull his oil from the trains. Carnegie's mentor, Tom Scott, tries to adjust, but he can't survive without Rockefeller's oil. His business is decimated, and Tom Scott never recovers. [somber music] PRIEST: From ashes to ashes and dust to dust. NARRATOR: Andrew Carnegie has lost his mentor, the man who meant more to him than anyone else in the world. SCOTT: Andy. Now, take this and this to the division superintendent. I think you can do it. Yes, sir. NARRATOR: As far as Carnegie is concerned, one man drove Tom Scott to his grave. [dramatic music] And now, Andrew Carnegie wants revenge. America's growth, following the Civil War, is nothing short of epic. Train tracks link east to west as never before. Oil lights homes from coast to coast. And steel is remaking the landscape in a way never thought possible. But just when the growth looks unstoppable, the railroad industry, the backbone of the American economy, collapses, and the nation is thrown into the worst depression it's ever seen. Andrew Carnegie is on the brink of losing everything. Without the railroads, he's lost his market for steel, and he blames his bitter rival, John D. Rockefeller. Desperate for a new market, Carnegie notices a trend he can capitalize on. Unemployed Americans by the thousands are flooding cities like New York and Chicago in search of work. And to accommodate the population surge, buildings are being constructed as fast as possible. Carnegie brilliantly begins to see that the future is not in rails but in structural steel, in girders, in beams, to build skyscrapers. And again, he's ahead of the curve. NARRATOR: The world's first skyscraper is built in Chicago. Its thin brick walls hang on a thick frame manufactured from Carnegie Steel. In the next few years, over 100,000 new buildings are erected in Chicago alone. Until steel began to become a major product, much of what we see about America could not have happened. America grew up, vertically, on steel. NARRATOR: Modern America is being built using Carnegie Steel. The skyscraper boom makes Andrew Carnegie one of the wealthiest men in America. But for Carnegie, it's not enough. [suspenseful music] John Rockefeller's personal fortune is seven times larger than Carnegie's, a feat he's achieved through a calculated ruthlessness. Carnegie believes that to avenge his mentor's death, he must surpass John Rockefeller as the most powerful man in America. And to do that, he must find help from someone even more cutthroat than his rival, and he knows the perfect man for the job. Henry Frick is a self-made millionaire by 30. He's one of the Midwest's largest coal suppliers. A ruthless businessman, Frick has a reputation for getting what he wants, by any means necessary. FRICK: Carter! Carter! This belongs to me now. Carter, I know you're in there! CARTER: [grunts] NARRATOR: Hiring Henry Frick will give Carnegie the merciless edge he lacks. [dance music] Follow me, sir. Henry. CARNEGIE: Andrew. Good to see you. Thank you for coming. It's my pleasure. Please sit. Thanks. Whiskey, neat. Now, Henry, I believe you're married since I saw you last. Marriage changes a man, Andrew. Oh, how's that? [chuckles] Well, let's say I've calmed down a bit. Well, it's a noble institution, as they say. Huh. I don't know about a noble, but it's an institution. An institution nonetheless, right? BOTH: [chuckling] MARK CUBAN: The partnership between Carnegie and Frick was very analogous to the way a good business partnership works today. You want somebody that's completely opposite and different from you as you possibly can get. NARRATOR: Frick's first assignment is to get Carnegie Steel into shape. His boss believes that Frick will use his toughness to cut costs and eliminate waste, leading to bigger profits. Many see giving Frick so much power as a huge risk, but Carnegie decides it's a risk worth taking. Welcome aboard, Henry. Thank you, Andrew. NARRATOR: In the end, hiring Frick may be the worst decision of Carnegie's career. [music playing] America's unprecedented growth is being led by a group of extraordinary men. Commodore Cornelius Vanderbilt creates the biggest railroad company in the country. John D Rockefeller uses standard oils refining capabilities to light homes from coast to coast. And now, Andrew Carnegie is using mass-produced steel to erect buildings that touch the sky, making the country stronger than it's ever been before. [music playing] CARNEGIE: Our Profit margin is unassailable. Our productivity is absolutely as good as any steel mill in Europe or America. NARRATOR: Carnegie's steel empire is expanding at a staggering rate. In just two years, profits have doubled. CARNEGIE: Right this way, sir, and I'll show you the rest. NARRATOR: By ramping up production, Carnegie and Frick are able to use the proceeds to buy competitors throughout Ohio and Pennsylvania. HW BRANDS: Carnegie demonstrated that if you're the first in whatever you do, you have a huge advantage over the people who come along later because you've got the jump on them, and very often that jump allows you to carve a niche and to maximize your profits within that niche. NARRATOR: Carnegie's personal fortune is skyrocketing. His net worth is now upwards of $3.5 billion in today's money. [dramatic music] His decision to hire Henry Frick looks like a stroke of genius. Through intimidation and fear, Frick renegotiates favorable contracts with suppliers and eliminates unnecessary expenses while upping production. ALL: 9, 8, 7, 6, 5, 4, 3-- NARRATOR: Approaching the final decade of the century, Carnegie Steel is more profitable than ever. Carnegie rewards Frick by making him chairman of his company-- Happy New Year. Happy New Year. NARRATOR: --the second most powerful man in steel. But for Frick, it's not enough. He wants his boss's seat at the table. Frick's father had been a failure, and now he wants to make sure that everyone knows he's not his father. Frick purchases land in the hills East of Pittsburgh. On it, he builds a members-only club for some of the wealthiest men in the country. The South Fork Fishing and Hunting Club sits on a huge artificial lake where club members can boat and fish. Even Carnegie joins the club. It doesn't seem like a problem to me. We know who our friends are, and we know how to please them. Yes, you can always buy a man. However, if it's possible not to, I would think that that's the bet-- FRICK: Excuse me just for one moment. NARRATOR: To create their playground, the club takes control of the South Fork dam, holding 20 million tons of water, the largest dam of its kind in the world. Just 14 miles down river lies Johnstown, a working-class community of steel workers and their families who live under the constant threat that the next rainstorm will wash away the dam. City officials beg Frick to strengthen the dam, but he ignores their pleas completely. [horse whinnies, nickers] I heard there was an accident. Well, you're right. There has been an accident, and I can't get my carriage to cross this road. Your carriage is too wide for the road, sir. Now, that is where you and I are going to differ. My carriage is just fine. It's the road that's the problem. To widen the road we'd have to lower the dam, sir. Well, there now. That wasn't too hard to sort out, was it? NARRATOR: By lowering the dam, Frick weakens it. [laughter] CARNEGIE: Henry shows me the ledgers at the end, and that was not the number I was expecting. It was a little bit higher than what I was expecting. And the only question remaining is how much money we'll make next year. FRICK: Well. I'm a bit dry over here, Henry. NARRATOR: Frick is content with his club, his image, and his wealth. [thunder rumbling] [laughing] CARNEGIE: That's terrible. That's not funny at all, Henry. NARRATOR: But everything is about to change. America is in an age of unprecedented prosperity. The country is connected coast to coast by rail. Kerosene lamps brighten the night. And steel is being used to build structures no one could have imagined even a decade earlier. Overseeing much of the growth are Pittsburgh steel magnates Andrew Carnegie and Henry Frick. Ideal partners, together they've driven Carnegie Steel to massive profits. [music playing] To celebrate, they've erected the South Fork Fishing and Hunting Club-- FRICK: Cheers. VANDERBILT: Cheers. NARRATOR: --a lakefront members-only playground, but construction has weakened the dams surrounding the lake at South Fork posing an imminent threat to the lives of tens of thousands of people in the valley below. [church bell tolling] Memorial Day breaks in Johnstown as ominous clouds roll in. [suspenseful music] [thunder rumbling] [thunderclap] [rain pattering] [sign squeaking] WOMAN: It's raining now. NARRATOR: At South Fork, lake levels are rising at an inch every 10 minutes. MAN 1: Let's go. Let's go. We need more bags here. MAN 2: Give me that bag. I need more bags. [thunderclap] [suspenseful music] MAN 1: Over here! MAN 2: Give me that bag. John! Get a telegram to Johnstown. Tell them to evacuate. [dramatic music] NARRATOR: The message reads, "South Fork dam liable to break. Notify the people to prepare for the worst." [clicking] The Johnstown telegraph office has seen the same warning many times before. They ignore it. [thunder rumbling] [somber music] [dramatic music] MAN 1: We need more up top. We're running out of time. [water rushing] Leave it! Leave it! Let's get out of here! Now! [rumbling] [crashing] [dog whining] [dog barking] [dramatic music] [water rushing] Get out of here! The dam's burst! [water rushing] MAN: Move away from the window. [rumbling] [glass shattering] [water bubbling] [somber music] NARRATOR: When the water stops, more than 2,000 people lie dead. One in three are so mutilated, they can't even be identified. 1,600 homes are destroyed and over four square miles of the town are completely leveled. The Johnstown flood is the worst man-made disaster in the United States prior to 9/11. Bodies will be found for years to come, some as far away as Cincinnati, 350 miles from Johnstown. Volunteers come from across the country to assist in the recovery. The flood is the first major peacetime relief effort of the recently formed American Red Cross. As outrage over the flood grows, the public looks for someone to blame. Most of that blame falls on the members of the South Fork Fishing and Hunting Club, but the members deny responsibility. [music playing] Lawsuits are filed, but they're ultimately unsuccessful. In the eyes of an angry public, The South Fork members, including Henry Frick, have gotten away with murder. The incident forever changes Andrew Carnegie who feels a sense of responsibility for the disaster. Unlike many of his fellow club members, he soon drops out of South Fork and begins a campaign to rebuild his damaged image. When your brand becomes so big that you become the name, you become the face behind the brand, it's difficult. There's also a great deal of responsibility and risk and you have to be very, very careful. NARRATOR: Carnegie donates millions to help rebuild Johnstown. Carnegie gave money to thousands of libraries, millions and millions of dollars. Carnegie wanted to be remembered for the good he had done. NARRATOR: Carnegie begins building public monuments across the country, and soon a grand music venue in Manhattan becomes his passion. [dramatic music] [hooves clomping] [horse whinnies] [thunder rumbling] [orchestral music] [chattering] Carnegie Hall is New York's new home for the performing arts and for high society to rub elbows. On opening night, Russian composer Peter Tchaikovsky is the featured performer. Andrew Carnegie is treated like Royalty, honored for the masterpiece he's built. But even in this setting, one man is a bigger presence. John D. Rockefeller is worth three times as much as Carnegie. [ominous music] But the cathedral Carnegie's built bearing his name takes their rivalry to another level. [frenetic string music] Oh, thank your, Alicia. NARRATOR: The men will spend the next 10 years battling each other, sparring with Christmas gifts. Rockefeller sends Carnegie a cheap paper vest, a jab at his simple beginnings as a poor immigrant. In return, Carnegie sends Rockefeller, a devout Baptist who doesn't drink, a bottle of fine whiskey. You know, I've had my own little rivalries. I've had a rivalry with Donald Trump where, I think it was back 2004, he was giving me a hard time about something, and I said, you know what? I could write a bigger check than you and not even know it's missing. Because I knew if I tweaked him, he would just respond, and he did. And I still like to tweak him just because it's fun. DONNY DEUTSCH: I always say, you have to have someone to hate to aim for. Having an enemy, having an arch enemy, having a competitor is what ups the game for everybody. NARRATOR: While Rockefeller's oil empire steadily grows, steel becomes the product of choice for construction, and Carnegie's business takes off. Mr. Connor. CONNOR: Yes, sir? How's the output? She's running at full capacity, sir. Good. Carry on. NARRATOR: Carnegie's steel helps trigger the upward expansion of America's cities. But if he wants to challenge Rockefeller for the title of America's most powerful businessman, Carnegie must become even more profitable. But he'll pay a price for his ambition that will threaten to destroy everything he's worked so hard to build. [cheering] [music playing] The building of a modern America is moving at lightning speed. Rail lines link east to west in a way never before thought possible. Oil is burning into the night. And steel is pushing cities to unimaginable heights. Driving this growth is a rivalry between two men, Andrew Carnegie and John D. Rockefeller. One, the undisputed king of oil. The other, the unchallenged man of steel. And each is determined not to be outdone. I benefit from high-class competition. I've been dogged by the competition, bested by the competition a couple of times, but I've had my licks too, and we managed to hold our own. [birds chirping] NARRATOR: To overtake Rockefeller as the richest man in the country, Carnegie can't just be a profitable steelmaker. He's got to be the most profitable. And for that, he needs an edge. [suspenseful music] He sets his sights on a struggling steel mill outside Pittsburgh with plans to make it the largest in his steel-making empire. Carnegie invests millions, retooling the plant to turn out more structural steel than any other mill of its size. The Homestead Steel Works is a true modern marvel, but it can't operate without manpower. One of the huge costs in a steel mill was labor. Carnegie knew that to stay profitable, he had to keep costs low. And the only way to keep costs low was to reduce wages and increase working hours. NARRATOR: To keep profits growing, Carnegie needs to continue cutting costs, including wages. But he's also determined to repair his image, something he can't do in the midst of a labor dispute, so he turns to his chairman to do the dirty work. Henry Frick has never been concerned with what people think of his methods. He's about one thing-- winning. DAVID NASAW: Carnegie didn't enjoy being a bad guy, being a villain. Frick didn't seem to mind. DONNY DEUTSCH: I think the great leaders find partners who basically can exploit their weaknesses but not dance on their strengths. Instead of hiring weaker versions of themselves, they hire people that are tremendous experts at what they're not. Henry shows me the ledgers at the end, and that was not the number I was expecting. And the only question that remains is how much we'll make next year. [laughing] Agreed. NARRATOR: With Frick firmly installed as chairman of Carnegie Steel, the boss heads to Scotland to give him room to operate. [birds chirping] [dramatic music] JIM CRAMER: The industrialists of that period of time are people who are out for themselves to make large fortunes as quickly as possible, even if it means pressing the envelope of what they have to do. NARRATOR: Frick begins squeezing all that he can get out of the workers at Homestead. DAVID NASAW: Frick decided that the only way to keep the plant running efficiently was with a 12-hour day, six days a week. What that meant was intolerable working conditions. No one could work 12 hours a day. If you're working in an office, you'd fall asleep at your desk. If you fall asleep in a steel mill, you end up dead. MARK CUBAN: You know, back when Carnegie was building his empire, obviously there were no labor laws. It was it was a free-for-all. And looking back, it seems horrific in a lot of different ways that workers were taken advantage of, but that was the game that was played back then. NARRATOR: The conditions are dangerous, and a small group of men bands together to raise their concerns. DAVID NASAW: Many of the workers at the steel mill felt that change in working conditions was a necessity. They were exhausted, and they wanted wages that were livable. NARRATOR: Unions are relatively new in America, and Frick isn't about to let them take root on his watch. But before acting, he seeks his boss's council. FRICK (VOICEOVER): "Dear Andrew. It may become necessary to fight it out this summer. Once got into, it will be fought to the finish." NARRATOR: Andrew Carnegie is well aware of Frick's aggressiveness. [gunshot] It's why he's put 3,000 miles between them. But Carnegie would rather leave some things unsaid. CARNEGIE (VOICEOVER): "Mr. Frick. No doubt you will get Homestead right. You can get anything right with your mild persistence." There's a fine line, how do we protect the worker yet at the same time continue to grease the wheels for capitalism. Sometimes those two are cross-purposes. [frenetic string music] NARRATOR: Frick takes Carnegie's words as a clear indication that it's time to go to war. He ramps up production pushing his men harder than ever. In case of a strike, he'll have a stockpile of finished steel. The men are spending half their lives in the dreadful and dangerous conditions, and they're about to reach their breaking point. MAN: [screaming] [music playing] America is growing at a staggering rate. Linked by railroads, the country is uniting for the first time. The age of steel has arrived. And Andrew Carnegie is building America's cities, erecting skyscrapers that dwarf anything ever seen. Andrew Carnegie was somebody that I think in terms of because I do buildings, and he really came up with the mass production of steel. He was the first, and he was the biggest by far, by a factor of 30 times. And what he built was unbelievable. And just got bigger and bigger and bigger. NARRATOR: To meet the demand for his steel, Carnegie orders his chairman, Henry Frick, to increase production while he heads to Scotland. Under Frick's watch, workers spend 12 hours a day, six days a week, stoking the fires of Carnegie's plant outside Pittsburgh, and the conditions are pushing workers to their breaking point. [machinery clacking] [rumbling] [explosion] [suspenseful music] [chattering] MAN: May the Lord in His love and mercy help you. May the Lord free you from sin and save you and raise you up. In the name of the Father, the Son, and the Holy Spirit. [somber music] NARRATOR: Accidents on the plant floor keep multiplying until one proves fatal. The death has the potential to unite the overwhelmed workforce. Frick knows what's coming. FRICK (VOICEOVER): "Dear Andrew. I'm not prepared to believe we will win without a severe struggle. I regret to say it does not seem that there is any other course open for us. We would better make the fight and be through with it." [suspenseful music] CARNEGIE (VOICEOVER): "Henry. One thing we are all sure of. No contest will be entered into that will fail. We all approve of anything you do. We are with you to the end." NARRATOR: Knowing his boss has his back, Frick throws to first punch. He tells workers that Carnegie Steel won't negotiate and conditions won't be improving. Frick didn't understand that the steel workers believed that the mill belonged to them. They were the ones who made the steel. It was their plant, and they weren't gonna let this nasty little Frick take it from them. O'DONNELL: Under the management of Mr. Frick, the Carnegie Company has wiped out organization in the Edgar Thompson Works, has wiped out organization in the Coke region, and are about to wipe out organization in Homestead. WORKERS: No! The time has come to send Mr. Frick a message. MAN: That's right. We do not accept the new pay scale. WORKERS: No. We do not accept the poor working conditions. WORKERS: No. We do not accept the long hours. WORKERS: No. O'DONNELL: And why can we do this? Because we are a union. WORKERS: Yeah! And nobody, nobody will break us. WORKERS: Yeah! All those in favor of striking, raise your hands. WORKERS: Yeah! Yeah! Yeah! [suspenseful music] [metal clanking] Mr. Frick. I'm giving you one more chance to call off this strike. I'll make sure any man who walks out never returns. We'll see. [dramatic music] [machinery clacking] [cog clicks] [dramatic music] NARRATOR: 2,000 steel workers barricade the front of the plant to prevent Frick from bringing in replacements. The fight has turned personal, but Frick isn't about to back down. He calls in reinforcements. [train horn blowing] [music playing] For years, the Pinkerton Detectives have been a private police force best known for tracking down train robbers. They even stopped a plot to assassinate Abraham Lincoln and were hired as the president's personal bodyguards. But now, they've become an army for hire with more men and guns than the US Military. If you have the money, they'll fight for you. And Frick has the money. We'll enter by the river, take them by force if necessary. Remember your training. Follow orders. If they start shooting, we'll hit them back hard. There is no place for cowardice. DAVID NASAW: The Pinkertons were mercenaries. They were from out of town. They had no ties to Pittsburgh, no ties to these workers. They were paid a wage to wield their clubs. The moment Frick made the decision to bring in Pinkertons, the die was cast and the only way this strike was going to end was in tragedy. MAN: Fire! NARRATOR: The building of modern America is in full force. The city's teemed with new construction projects built of steel. That steel travels around the country on railroads that unite us as never before. The growth is driven by a rivalry between the country's wealthiest men-- Andrew Carnegie and John D. Rockefeller. CHARLES SCHWAB: The great men of those times created incredible capabilities that were truly important for the establishment of a great, strong country. NARRATOR: But while the Ohio oilman is quietly amassing his fortune, the Pennsylvania steel king is dealing with a rebellion. [dramatic music] [chattering] 2,000 men barricade themselves inside the Homestead plant causing steel production to grind to a halt. Carnegie Steel's chairman, Henry Frick, is in no mood to negotiate. Under pressure to quell the revolt, Frick brings in the Pinkertons, a mercenary army capable of out-gunning the US Military, and their presence threatens to be the spark that lights the powder keg. DAVID NASAW: Frick thought to himself, when the workers see the Pinkertons, when they see that I'm not gonna back down, they will back down. He thought a show of strength, a show of resolve, was all that was needed and that would be the end. He badly miscalculated. HEINDE: Go ahead. Keep going. Hold your ground. Stay calm. Stay calm. [chattering] [dramatic music] We're here to take possession of this property. WORKERS: No! I suggest you turn around and go home. You're not getting in. HEINDE: If you do not stand aside, we will mow every one of you down. WORKERS: [grumbling] Innocent men will be on your hands. Tear down this barricade! WORKERS: [shouting] HEINDE: [grunting] [gunshot] Fire! Fire! Shoot at them. Shoot! [rapid gun fire] [groaning] [gunshot] [gunshot] WORKERS: [yelling] O'DONNELL: Keep your ground. Take it. [screaming] Fire! Fire! Fire! Fire! Fire! [echoing gunshot] [retching, vomiting] [somber music] NARRATOR: When the fighting stops, nine Carnegie Steel workers lie dead while countless others sustain severe injuries. But they managed to hold their ground until Pennsylvania's governor sends in the state militia to finally restore order. Homestead is back in the hands of the management, but Andrew Carnegie's problems are far from over. The public is outraged over the violence blaming chairman Henry Frick directly. Many are demanding justice for the dead. [suspenseful music] Mr. Frick? [gunshot] NARRATOR: The vast and rapid growth of America is in full swing. Railroads now connect all 44 states. Oil is the most precious resource in the country. And steel is building our cities. But growth at this pace doesn't come without a cost. Andrew Carnegie is making more steel than anyone else in the world. To meet this level of production, his workers are on their feet 12 hours a day, six days a week. The conditions spur them to barricade the plant leading Carnegie's chairman, Henry Frick, to call in mercenaries. Fire! Shoot them! Shoot! WORKERS: [shouting] [rapid gun fire] NARRATOR: A bloody battle leaves nine workers dead. Frick regains control of Homestead. But while the carnage is over, the public outcry is just beginning. DAVID NASAW: It was a massacre, and not just in terms of the number of injured and dead, but a massacre that any civilians should be killed standing and defending their plant. NARRATOR: Overnight, Homestead becomes a searing symbol of life and death in industrial America. [birds squawking] [suspenseful music] MAURY KLEIN: Carnegie probably was appalled at what happened at Homestead. He prided himself on portraying his company as an enlightened, progressive company, which in many ways it was. What Homestead did was to cast a stain on that and on his reputation that he had a very hard time living down. NARRATOR: Carnegie extends his stay in Scotland hoping the distance will allow the controversy to blow over, but American reporters track him down. Excuse me. Just-- just a word. CARNEGIE: No, gentlemen. Mr. Carnegie. CARNEGIE: Another time, gentlemen. Just a word. I'm not in the habit of giving interviews in the middle of public parks. Get out of my damned way! [music playing] NARRATOR: While Carnegie's hounded by press abroad, at home, the public's outrage is escalating. A new group is emerging calling themselves the Anarchists. Known for their violent tactics, they are beginning to strike out whenever and wherever they see injustice. Now, they've turned their attention to the massacre at Homestead demanding payback. Their target is the chairman of Carnegie Steel. Henry Frick is determined to get steel production back up to speed, but his enemies have other plans. [suspenseful music] [dramatic music] Mr. Frick? [gunshot] [groans] [grunting] [groans] BOTH: [grunting] [groaning] [grunting] Get off of me! [music playing] NARRATOR: Andrew Carnegie fights to save his steel empire after the bloody attempt on his chairman's life. But just as Carnegie's rivalry with Rockefeller reaches the breaking point, a new threat emerges. REPORTERS: Mr. Morgan. Mr. Morgan. Mr. Morgan. Mr. Morgan, are we on the verge of a depression? Not if we act wisely. NARRATOR: JP Morgan partners with a famous inventor-- JP MORGAN: You're about to become a very busy man, Edison. NARRATOR: --to spark a revolution that changes the world forever. [applause] But every revolution has a dark side. [suspenseful music] EDISON: I do not want the House of Morgan associated with electricity. I have a chance to build here. Pierpont! What would it take to light all the homes in New York City? This is what's going to happen. There's going to be an end to this war. [applause] The best time to buy is when there's blood on the streets. [electricity zapping]

[dramatic music] NARRATOR: Previously on
"The Men Who Built America." Bruised and battered
following the long Civil War, the country has emerged
stronger than ever. American railroads have
become the largest companies in the world. And through shear force-- Buy everything you can. NARRATOR: --Cornelius Vanderbilt
has built the biggest. We're gonna watch them bleed. [dramatic music] NARRATOR: But a new
industry emerges to challenge the railroads. Led by John D. Rockefeller,
the age of oil begins. Soon, Vanderbilt and
the other railroads see oil as an opportunity. ROCKEFELLER: You want a cartel
between oil and railroads. NARRATOR: But as railroad men
like Tom Scott and his protege Andrew Carnegie take on big
oil, Rockefeller declares war on the railroads-- Shut them down. NARRATOR: --and brings
the industry to its knees. [MUSIC - BLUES SARACENO, "SAVE
MY SOUL"] (SINGING) When I got to
Memphis, I put my old baby down. He said, I can't take you to
heaven, I can't save your soul, I can't promise forever. Hey, yeah, I got my
heart in your hands. I can't feel, feel my soul. [rain pattering] PRIEST: If the gathered
here would now join me in the reciting of
the Lord's Prayer. [birds screeching] Our Father, who art in
heaven, hallowed be Thy name. Thy kingdom come, Thy
will be done on Earth as it is in heaven. Give us this day our
daily bread and forgive us in our trespasses
as we forgive those who trespassed against us. And lead us not into temptation
but deliver us from evil. For Thine is the power and
the glory, forever and ever. Amen. [dramatic music] NARRATOR: Andrew
Carnegie's mentor is buried on a rainy day
just outside of Philadelphia. He dies a broken man,
defeated and humiliated at the hands of
John D. Rockefeller. The loss is an enormous
blow to Carnegie. Without Tom Scott,
Carnegie would be nothing. Sir. Thanks. NARRATOR: At the age
of 12, Andrew Carnegie begins working for a local
railroad in Pittsburgh. There, he meets the company's
president, Tom Scott. SCOTT: Andy. NARRATOR: Scott takes a
liking to young Carnegie hiring him as his
personal assistant. Now, take this and this to
the division superintendent Yes, sir. This is for you, sir. Oh, Thank you. DAVID NASAW: He never expected
to work at 12 years old. He wanted to go to school. He wanted to grow up. But the family had
absolutely no way of surviving without
sending him to work. [music playing] HW BRANDS: Andy is the
man of the household. He realizes fairly early
on that he's smart. He discovers in
himself an ambition. And when Andy Carnegie
showed the intelligence, showed the nerve to take on
some of the responsibilities, Scott realized that this
was somebody to cultivate, somebody to nurture. NARRATOR: Tom Scott
quickly advances Carnegie through the ranks. Like most young people who
get breaks, luck has a lot to with it, and timing. And the second factor besides
timing is that, as a young man, usually all of us
would admit that there was a mentor, a benefactor. And when an older person
who you respect and admire has confidence in you,
it's a great booster to your own self-confidence. NARRATOR: By age 24, Carnegie
is promoted to manager of the company working
closely with Scott to oversee the railroad's
expansion west. [metal clanging] [geese quacking] SCOTT: So I bought 100,000
shares at $10 a share before news of the
contract came out. When the issue became public,
the shares doubled in value. The next day, you
know what I did? I sold them. I didn't have to build a thing. The key is westward expansion. CARNEGIE: Yes, sir. [breathing heavily] Here. This is where I want the bridge. Right here. You think you can do it? Yes, sir. I know a good
designer, James Eads. He's crazy but he's a genius. A bridge builder, is he? No, but he's quick
and he's cheap. He can do anything. Come. NARRATOR: The bridge
Scott has outlined will be the largest in America. The problem is, Carnegie
has no idea how to build it. A bridge spanning
the Mississippi River would connect east to
west like never before. The key to success
for any railroad is getting across the
Mississippi River. Once you get across
the Mississippi River, you can move west. The question is, how do you get
across the Mississippi River? NARRATOR: The bridge will
have to be over a mile long. One in four bridges
built at the time fail. And nobody has built a
rail bridge this big. But Carnegie knows there's
no reward without risk. He invests everything
he has into the bridge. HW BRANDS: Andy
Carnegie stepped up. He decided he could do it. One striking thing
about Carnegie, and this is true of the
great entrepreneurs, they're willing to take risks. They're willing to roll the
dice and bet, in later days, the whole corporation or, in
this case, bet his career. [music playing] It's no good. Why? We can't block
steamboat traffic. We've been through this. Show me the
cantilever one again. It's not going to withstand
the Mississippi current. So make it stronger. It's impossible. The combined forces from
the passenger traffic, rail freight, and the river
current will exceed the tensile strength of iron. The bridge will collapse. Nothing's impossible. STEVE CASE: You have to be
patient and have perseverance. And then having a sense
of where you want to go and having the passion to
still believe in your idea even when everybody
else is saying, well, why are you wasting
your time on this? Obviously, it's not happening. But you know it's
going to happen. You just don't-- you never
give up on that idea. [church bell tolling] [sighs] MAN: How am I supposed
to make any money? They're worth
more than a dollar. MAN: 5 cents, final offer. All right. [metal clanging] [hooves clomping] It's not going to withstand
the Mississippi current. So make it stronger. Maybe if it was
made out of steel. Nothing's impossible. [machinery banging] NARRATOR: Steel is the
strongest material ever made, created by mixing iron with
carbon at over 2,000 degrees. The problem is, it's extremely
expensive and difficult to mass produce. Because steel is so rare, it's
only used to make small items-- forks, knives, and jewelry. No one has ever tried to use
steel to build a structure this big, until now. He's looking into the future. He looks across the Mississippi
and he sees a bridge. And he's able to see that
future and then willing to have enough confidence in his vision
to put everything he's got into it, and he's willing
to convince others that he knows what that
future is going to be. NARRATOR: In order to
complete the bridge, Carnegie needs to find a way to
make a massive amount of steel. He spent a lot
of time traveling. He would go to steel mills. He would meet with
chemists to figure out, how do you make this steel? NARRATOR: English
inventor Henry Bessemer has created a device
that cuts the time to manufacturer a single steel
rail from two weeks to 15 minutes. Carnegie understands the
value of the new technology and begins to adapt it. Every business
has some uniqueness, either unique talent, unique
product, unique capacity. And the trick is to find
it and capitalize on it. NARRATOR: With the
steel in place, Carnegie is able to
begin construction. [exciting music] At just 33, Andrew
Carnegie is poised to realize the impossible-- building the first
major bridge to span the Mississippi
River, uniting America. But Carnegie's decision to
use steel has proven costly. He's already two
years behind schedule and expenses are mounting. [slow music] DEBT COLLECTOR 1:
"Dear Mr. Carnegie. Our records show
that we have not received your payment of
$35,000 which was due--" "Dear Mr. Carnegie. I'm writing to notify you
that despite numerous efforts to obtain final payment
for the above invoice, I have been unsuccessful--" DEBT COLLECTOR 2: "This letter
will serve as formal notice to you that you are in
default of your obligation to pay the sum of $59,000
for steel delivered to you." DEBT COLLECTOR 3: "I must
now accelerate the collection efforts in accordance with--" [interposing voices] DEBT COLLECTOR 1:
"And you will be able to settle this outstanding
amount immediately." DEBT COLLECTOR 2: "We will have
no alternative but to commence legal proceedings against you." [rope creaks] I guarantee you, if these
guys were alive today, they wouldn't be telling
you about their successes. They'd be telling you
about their early failures or the places they
almost failed. That's the great
motivator, and you have to be able to embrace that. If you can't embrace both
failure or the possibility of failure or the
tremendous fear of failure, you can't be wildly successful. It's an axiomatic truth. NARRATOR: With no
money left, Carnegie is forced to bring
construction to a halt. His dream has
become a nightmare, but he's not going
down without a fight. [music playing] The birth of modern
America is well underway. Trains now touch all four
corners of the continent. Homes across the nation
are lit at night. And the country's most
ambitious construction project is in progress on the banks
of the Mississippi River led by Andrew Carnegie. Carnegie has insisted on
building his bridge out of steel, an unproven
material with huge costs. Construction is drastically
behind schedule and dangerously over budget. Carnegie is under
mounting pressure. CARLY FIORINA: The difference
between people who succeed and people who fail, I think,
in many cases, it's not fear. Everyone experiences fear. The difference is, what
do you do with your fear? Do you work to overcome it
or do you let it defeat you? And I think that is actually
what distinguishes very successful people from others. NARRATOR: Desperate,
Carnegie reaches out to investors looking
for an infusion of cash. CARNEGIE: You'll
be glad to learn that the building of
the St. Louis bridge is progressing smoothly. I am convinced that
steel is the future. However, obtaining such
a large quantity of steel is proving to be difficult
causing us some delays. It is also proving to
be extremely expensive. My forecast shows that we will
require another million dollars before the year is out,
but I have no doubt that in time the
people will come to see the bridge as the
eighth wonder of the world. Yours sincerely,
Andrew Carnegie. NARRATOR: Carnegie's
last-minute pitch works. He secures the
financing he needs. And finally, after four
years, the bridge is complete. The results are epic. But Carnegie now
faces a new problem. In St. Louis, one
of the real problems was convincing people that the
bridge wasn't going to fall. I mean, nobody had ever seen
bridges like this anywhere. NARRATOR: Carnegie sees all
the possible uses for steel. But before he can realize
the material's potential, he needs to convince the
public of its strength. And he has a plan
to do just that. A popular superstition
at the time holds that an elephant won't
cross an unstable structure. [dramatic music] DAVID NASAW: The day
the bridge opens, Carnegie, who is a
master publicist, sets up a parade across
the bridge that's led by an elephant. [cheering] [elephant roaring] NARRATOR: It's an
incredible gamble, but Carnegie hopes if
the elephant crosses, the people will follow. [cheering] DAVID NASAW: As the people of
St. Louis look at this bridge, they see that it can
sustain whatever weight's gonna be put on it. NARRATOR: When the
stunt succeeds, Carnegie gets more
requests for his steel than he can possibly handle,
and his biggest customer is an industry he knows well. [train horn blowing] The railroads are looking to
replace their bridges and rails with steel, but
Carnegie can't produce enough of the new material
to fill all the orders. He needs to increase
his capacity. And to do that, he needs
to raise additional funds, so he turns to his
old mentor Tom Scott. With his help, Carnegie
raises over $21 million in today's money. And with it, he builds
his first steel plant. DAVID NASAW: He sees
the future, and he is willing to invest where few
other American entrepreneurs are willing to invest, in
these gigantic new plants. NARRATOR: Sprawled
over 100 acres just outside of Pittsburgh,
Carnegie's steel mill is the largest in the nation. Capable of rolling out
225 tons of steel a day. You have to believe,
if you're Carnegie, that you're going to have
multiple years of growth where steel is important. The faith and optimism that
someone like Carnegie had is just off the charts
versus what we see now. NARRATOR: With the
new plant, Carnegie can supply as much steel
as the country needs and make himself a fortune. But Carnegie's timing
couldn't be worse. After years of overbuilding,
the railroads are suddenly struggling to stay profitable. HW BRANDS: There were too
many railroads at the time. There wasn't enough
traffic to sustain them. NARRATOR: With the railroads
in dire need of cargo, John Rockefeller
sees an opportunity and negotiates better
rates for shipping his oil. But the struggling
railroads quickly realize their business
won't survive and go back on their word causing
Rockefeller to pull his oil from the trains. Carnegie's mentor, Tom
Scott, tries to adjust, but he can't survive
without Rockefeller's oil. His business is decimated,
and Tom Scott never recovers. [somber music] PRIEST: From ashes to
ashes and dust to dust. NARRATOR: Andrew Carnegie has
lost his mentor, the man who meant more to him than
anyone else in the world. SCOTT: Andy. Now, take this and this to
the division superintendent. I think you can do it. Yes, sir. NARRATOR: As far as
Carnegie is concerned, one man drove Tom
Scott to his grave. [dramatic music] And now, Andrew
Carnegie wants revenge. America's growth,
following the Civil War, is nothing short of epic. Train tracks link east
to west as never before. Oil lights homes
from coast to coast. And steel is remaking
the landscape in a way never thought possible. But just when the growth
looks unstoppable, the railroad
industry, the backbone of the American
economy, collapses, and the nation is thrown into
the worst depression it's ever seen. Andrew Carnegie is on the
brink of losing everything. Without the railroads, he's
lost his market for steel, and he blames his bitter
rival, John D. Rockefeller. Desperate for a new market,
Carnegie notices a trend he can capitalize on. Unemployed Americans
by the thousands are flooding cities like
New York and Chicago in search of work. And to accommodate
the population surge, buildings are being constructed
as fast as possible. Carnegie brilliantly begins
to see that the future is not in rails but in structural
steel, in girders, in beams, to build skyscrapers. And again, he's
ahead of the curve. NARRATOR: The world's first
skyscraper is built in Chicago. Its thin brick walls hang on
a thick frame manufactured from Carnegie Steel. In the next few years,
over 100,000 new buildings are erected in Chicago alone. Until steel began to
become a major product, much of what we
see about America could not have happened. America grew up,
vertically, on steel. NARRATOR: Modern
America is being built using Carnegie Steel. The skyscraper boom makes Andrew
Carnegie one of the wealthiest men in America. But for Carnegie,
it's not enough. [suspenseful music] John Rockefeller's personal
fortune is seven times larger than Carnegie's, a
feat he's achieved through a calculated
ruthlessness. Carnegie believes that to
avenge his mentor's death, he must surpass John Rockefeller
as the most powerful man in America. And to do that, he must find
help from someone even more cutthroat than his rival,
and he knows the perfect man for the job. Henry Frick is a self-made
millionaire by 30. He's one of the Midwest's
largest coal suppliers. A ruthless
businessman, Frick has a reputation for getting what he
wants, by any means necessary. FRICK: Carter! Carter! This belongs to me now. Carter, I know you're in there! CARTER: [grunts] NARRATOR: Hiring Henry
Frick will give Carnegie the merciless edge he lacks. [dance music] Follow me, sir. Henry. CARNEGIE: Andrew. Good to see you. Thank you for coming. It's my pleasure. Please sit. Thanks. Whiskey, neat. Now, Henry, I believe you're
married since I saw you last. Marriage changes
a man, Andrew. Oh, how's that? [chuckles] Well, let's say I've
calmed down a bit. Well, it's a noble
institution, as they say. Huh. I don't know about a noble,
but it's an institution. An institution
nonetheless, right? BOTH: [chuckling] MARK CUBAN: The partnership
between Carnegie and Frick was very analogous to the way a
good business partnership works today. You want somebody
that's completely opposite and different from
you as you possibly can get. NARRATOR: Frick's
first assignment is to get Carnegie
Steel into shape. His boss believes that
Frick will use his toughness to cut costs and
eliminate waste, leading to bigger profits. Many see giving Frick so
much power as a huge risk, but Carnegie decides
it's a risk worth taking. Welcome aboard, Henry. Thank you, Andrew. NARRATOR: In the
end, hiring Frick may be the worst decision
of Carnegie's career. [music playing] America's
unprecedented growth is being led by a group
of extraordinary men. Commodore Cornelius Vanderbilt
creates the biggest railroad company in the country. John D Rockefeller uses standard
oils refining capabilities to light homes from
coast to coast. And now, Andrew Carnegie is
using mass-produced steel to erect buildings
that touch the sky, making the country stronger
than it's ever been before. [music playing] CARNEGIE: Our Profit
margin is unassailable. Our productivity is absolutely
as good as any steel mill in Europe or America. NARRATOR: Carnegie's
steel empire is expanding at a
staggering rate. In just two years,
profits have doubled. CARNEGIE: Right this way, sir,
and I'll show you the rest. NARRATOR: By ramping
up production, Carnegie and Frick are able
to use the proceeds to buy competitors throughout
Ohio and Pennsylvania. HW BRANDS: Carnegie
demonstrated that if you're the first in whatever you
do, you have a huge advantage over the people who come
along later because you've got the jump on them, and very
often that jump allows you to carve a niche and to maximize
your profits within that niche. NARRATOR: Carnegie's personal
fortune is skyrocketing. His net worth is now upwards of
$3.5 billion in today's money. [dramatic music] His decision to hire Henry Frick
looks like a stroke of genius. Through intimidation
and fear, Frick renegotiates favorable
contracts with suppliers and eliminates
unnecessary expenses while upping production. ALL: 9, 8, 7, 6, 5, 4, 3-- NARRATOR: Approaching the
final decade of the century, Carnegie Steel is more
profitable than ever. Carnegie rewards Frick by making
him chairman of his company-- Happy New Year. Happy New Year. NARRATOR: --the second
most powerful man in steel. But for Frick, it's not enough. He wants his boss's
seat at the table. Frick's father had
been a failure, and now he wants to make sure
that everyone knows he's not his father. Frick purchases land in the
hills East of Pittsburgh. On it, he builds a members-only
club for some of the wealthiest men in the country. The South Fork Fishing
and Hunting Club sits on a huge artificial
lake where club members can boat and fish. Even Carnegie joins the club. It doesn't seem
like a problem to me. We know who our friends are,
and we know how to please them. Yes, you can always buy a man. However, if it's
possible not to, I would think that
that's the bet-- FRICK: Excuse me
just for one moment. NARRATOR: To create
their playground, the club takes control
of the South Fork dam, holding 20 million tons
of water, the largest dam of its kind in the world. Just 14 miles down
river lies Johnstown, a working-class community
of steel workers and their families who live
under the constant threat that the next rainstorm
will wash away the dam. City officials beg Frick
to strengthen the dam, but he ignores their
pleas completely. [horse whinnies, nickers] I heard there was an accident. Well, you're right. There has been an accident,
and I can't get my carriage to cross this road. Your carriage is too
wide for the road, sir. Now, that is where you
and I are going to differ. My carriage is just fine. It's the road
that's the problem. To widen the road we'd
have to lower the dam, sir. Well, there now. That wasn't too hard
to sort out, was it? NARRATOR: By lowering the
dam, Frick weakens it. [laughter] CARNEGIE: Henry shows me
the ledgers at the end, and that was not the
number I was expecting. It was a little bit higher
than what I was expecting. And the only question
remaining is how much money we'll make next year. FRICK: Well. I'm a bit dry
over here, Henry. NARRATOR: Frick is content
with his club, his image, and his wealth. [thunder rumbling] [laughing] CARNEGIE: That's terrible. That's not funny at all, Henry. NARRATOR: But everything
is about to change. America is in an age of
unprecedented prosperity. The country is connected
coast to coast by rail. Kerosene lamps
brighten the night. And steel is being used to build
structures no one could have imagined even a decade earlier. Overseeing much of the growth
are Pittsburgh steel magnates Andrew Carnegie and Henry Frick. Ideal partners, together
they've driven Carnegie Steel to massive profits. [music playing] To celebrate, they've erected
the South Fork Fishing and Hunting Club-- FRICK: Cheers. VANDERBILT: Cheers. NARRATOR: --a lakefront
members-only playground, but construction has weakened
the dams surrounding the lake at South Fork posing an imminent
threat to the lives of tens of thousands of people
in the valley below. [church bell tolling] Memorial Day breaks in Johnstown
as ominous clouds roll in. [suspenseful music] [thunder rumbling] [thunderclap] [rain pattering] [sign squeaking] WOMAN: It's raining now. NARRATOR: At South Fork, lake
levels are rising at an inch every 10 minutes. MAN 1: Let's go. Let's go. We need more bags here. MAN 2: Give me that bag. I need more bags. [thunderclap] [suspenseful music] MAN 1: Over here! MAN 2: Give me that bag. John! Get a telegram to Johnstown. Tell them to evacuate. [dramatic music] NARRATOR: The message
reads, "South Fork dam liable to break. Notify the people to
prepare for the worst." [clicking] The Johnstown telegraph office
has seen the same warning many times before. They ignore it. [thunder rumbling] [somber music] [dramatic music] MAN 1: We need more up top. We're running out of time. [water rushing] Leave it! Leave it! Let's get out of here! Now! [rumbling] [crashing] [dog whining] [dog barking] [dramatic music] [water rushing] Get out of here! The dam's burst! [water rushing] MAN: Move away from the window. [rumbling] [glass shattering] [water bubbling] [somber music] NARRATOR: When the water
stops, more than 2,000 people lie dead. One in three are so mutilated,
they can't even be identified. 1,600 homes are destroyed
and over four square miles of the town are
completely leveled. The Johnstown flood is the worst
man-made disaster in the United States prior to 9/11. Bodies will be found
for years to come, some as far away as Cincinnati,
350 miles from Johnstown. Volunteers come from
across the country to assist in the recovery. The flood is the first major
peacetime relief effort of the recently formed
American Red Cross. As outrage over the
flood grows, the public looks for someone to blame. Most of that blame falls on
the members of the South Fork Fishing and Hunting
Club, but the members deny responsibility. [music playing] Lawsuits are filed, but they're
ultimately unsuccessful. In the eyes of an angry
public, The South Fork members, including Henry Frick, have
gotten away with murder. The incident forever
changes Andrew Carnegie who feels a sense
of responsibility for the disaster. Unlike many of his
fellow club members, he soon drops out of South
Fork and begins a campaign to rebuild his damaged image. When your brand becomes so
big that you become the name, you become the face behind
the brand, it's difficult. There's also a great deal
of responsibility and risk and you have to be
very, very careful. NARRATOR: Carnegie
donates millions to help rebuild Johnstown. Carnegie gave money to
thousands of libraries, millions and
millions of dollars. Carnegie wanted to be remembered
for the good he had done. NARRATOR: Carnegie begins
building public monuments across the country, and soon a
grand music venue in Manhattan becomes his passion. [dramatic music] [hooves clomping] [horse whinnies] [thunder rumbling] [orchestral music] [chattering] Carnegie Hall is New York's new
home for the performing arts and for high society
to rub elbows. On opening night, Russian
composer Peter Tchaikovsky is the featured performer. Andrew Carnegie is treated
like Royalty, honored for the masterpiece he's built.
But even in this setting, one man is a bigger presence. John D. Rockefeller is
worth three times as much as Carnegie. [ominous music] But the cathedral Carnegie's
built bearing his name takes their rivalry to another level. [frenetic string music] Oh, thank your, Alicia. NARRATOR: The men will spend
the next 10 years battling each other, sparring
with Christmas gifts. Rockefeller sends Carnegie
a cheap paper vest, a jab at his simple beginnings
as a poor immigrant. In return, Carnegie sends
Rockefeller, a devout Baptist who doesn't drink, a
bottle of fine whiskey. You know, I've had my
own little rivalries. I've had a rivalry with
Donald Trump where, I think it was back
2004, he was giving me a hard time about something,
and I said, you know what? I could write a bigger
check than you and not even know it's missing. Because I knew if I tweaked
him, he would just respond, and he did. And I still like to tweak
him just because it's fun. DONNY DEUTSCH: I always say,
you have to have someone to hate to aim for. Having an enemy, having an
arch enemy, having a competitor is what ups the
game for everybody. NARRATOR: While Rockefeller's
oil empire steadily grows, steel becomes the product
of choice for construction, and Carnegie's
business takes off. Mr. Connor. CONNOR: Yes, sir? How's the output? She's running at
full capacity, sir. Good. Carry on. NARRATOR: Carnegie's steel helps
trigger the upward expansion of America's cities. But if he wants to
challenge Rockefeller for the title of America's
most powerful businessman, Carnegie must become
even more profitable. But he'll pay a price
for his ambition that will threaten
to destroy everything he's worked so hard to build. [cheering] [music playing] The building of a modern America
is moving at lightning speed. Rail lines link east
to west in a way never before thought possible. Oil is burning into the night. And steel is pushing cities
to unimaginable heights. Driving this growth is a
rivalry between two men, Andrew Carnegie and John
D. Rockefeller. One, the undisputed king of oil. The other, the
unchallenged man of steel. And each is determined
not to be outdone. I benefit from
high-class competition. I've been dogged by
the competition, bested by the competition
a couple of times, but I've had my licks too, and
we managed to hold our own. [birds chirping] NARRATOR: To overtake
Rockefeller as the richest man in the country,
Carnegie can't just be a profitable steelmaker. He's got to be the
most profitable. And for that, he needs an edge. [suspenseful music] He sets his sights on
a struggling steel mill outside Pittsburgh with
plans to make it the largest in his steel-making empire. Carnegie invests millions,
retooling the plant to turn out more structural
steel than any other mill of its size. The Homestead Steel Works
is a true modern marvel, but it can't operate
without manpower. One of the huge costs
in a steel mill was labor. Carnegie knew that
to stay profitable, he had to keep costs low. And the only way
to keep costs low was to reduce wages and
increase working hours. NARRATOR: To keep
profits growing, Carnegie needs to continue
cutting costs, including wages. But he's also determined to
repair his image, something he can't do in the midst
of a labor dispute, so he turns to his chairman
to do the dirty work. Henry Frick has never been
concerned with what people think of his methods. He's about one thing-- winning. DAVID NASAW: Carnegie didn't
enjoy being a bad guy, being a villain. Frick didn't seem to mind. DONNY DEUTSCH: I think the
great leaders find partners who basically can exploit
their weaknesses but not dance on
their strengths. Instead of hiring weaker
versions of themselves, they hire people that are
tremendous experts at what they're not. Henry shows me the
ledgers at the end, and that was not the
number I was expecting. And the only
question that remains is how much we'll
make next year. [laughing] Agreed. NARRATOR: With Frick
firmly installed as chairman of Carnegie Steel,
the boss heads to Scotland to give him room to operate. [birds chirping] [dramatic music] JIM CRAMER: The industrialists
of that period of time are people who are out
for themselves to make large fortunes as
quickly as possible, even if it means pressing the
envelope of what they have to do. NARRATOR: Frick begins squeezing
all that he can get out of the workers at Homestead. DAVID NASAW: Frick decided that
the only way to keep the plant running efficiently was with a
12-hour day, six days a week. What that meant was
intolerable working conditions. No one could work
12 hours a day. If you're working in an office,
you'd fall asleep at your desk. If you fall asleep in a
steel mill, you end up dead. MARK CUBAN: You know, back
when Carnegie was building his empire, obviously
there were no labor laws. It was it was a free-for-all. And looking back,
it seems horrific in a lot of different ways that
workers were taken advantage of, but that was the game
that was played back then. NARRATOR: The conditions
are dangerous, and a small group of
men bands together to raise their concerns. DAVID NASAW: Many of the
workers at the steel mill felt that change in working
conditions was a necessity. They were exhausted, and they
wanted wages that were livable. NARRATOR: Unions are
relatively new in America, and Frick isn't about to let
them take root on his watch. But before acting, he
seeks his boss's council. FRICK (VOICEOVER): "Dear Andrew. It may become necessary to
fight it out this summer. Once got into, it will
be fought to the finish." NARRATOR: Andrew Carnegie
is well aware of Frick's aggressiveness. [gunshot] It's why he's put 3,000
miles between them. But Carnegie would rather
leave some things unsaid. CARNEGIE (VOICEOVER):
"Mr. Frick. No doubt you will
get Homestead right. You can get anything right
with your mild persistence." There's a fine line, how
do we protect the worker yet at the same time continue
to grease the wheels for capitalism. Sometimes those two
are cross-purposes. [frenetic string music] NARRATOR: Frick takes Carnegie's
words as a clear indication that it's time to go to war. He ramps up production pushing
his men harder than ever. In case of a strike, he'll have
a stockpile of finished steel. The men are spending
half their lives in the dreadful and
dangerous conditions, and they're about to reach
their breaking point. MAN: [screaming] [music playing] America is growing
at a staggering rate. Linked by railroads, the country
is uniting for the first time. The age of steel has arrived. And Andrew Carnegie is
building America's cities, erecting skyscrapers that
dwarf anything ever seen. Andrew Carnegie was
somebody that I think in terms of because I do
buildings, and he really came up with the mass
production of steel. He was the first, and he
was the biggest by far, by a factor of 30 times. And what he built
was unbelievable. And just got bigger
and bigger and bigger. NARRATOR: To meet the
demand for his steel, Carnegie orders his
chairman, Henry Frick, to increase production
while he heads to Scotland. Under Frick's watch, workers
spend 12 hours a day, six days a week, stoking the
fires of Carnegie's plant outside Pittsburgh, and the
conditions are pushing workers to their breaking point. [machinery clacking] [rumbling] [explosion] [suspenseful music] [chattering] MAN: May the Lord in His
love and mercy help you. May the Lord free you from sin
and save you and raise you up. In the name of the Father,
the Son, and the Holy Spirit. [somber music] NARRATOR: Accidents
on the plant floor keep multiplying until
one proves fatal. The death has the
potential to unite the overwhelmed workforce. Frick knows what's coming. FRICK (VOICEOVER): "Dear Andrew. I'm not prepared
to believe we will win without a severe struggle. I regret to say it does not seem
that there is any other course open for us. We would better make the
fight and be through with it." [suspenseful music] CARNEGIE (VOICEOVER): "Henry. One thing we are all sure of. No contest will be entered
into that will fail. We all approve of
anything you do. We are with you to the end." NARRATOR: Knowing his
boss has his back, Frick throws to first punch. He tells workers that
Carnegie Steel won't negotiate and conditions
won't be improving. Frick didn't understand that
the steel workers believed that the mill belonged to them. They were the ones
who made the steel. It was their plant,
and they weren't gonna let this nasty little
Frick take it from them. O'DONNELL: Under the
management of Mr. Frick, the Carnegie Company has wiped
out organization in the Edgar Thompson Works, has wiped
out organization in the Coke region, and are about to wipe
out organization in Homestead. WORKERS: No! The time has come to
send Mr. Frick a message. MAN: That's right. We do not accept
the new pay scale. WORKERS: No. We do not accept the
poor working conditions. WORKERS: No. We do not accept
the long hours. WORKERS: No. O'DONNELL: And why
can we do this? Because we are a union. WORKERS: Yeah! And nobody, nobody
will break us. WORKERS: Yeah! All those in favor of
striking, raise your hands. WORKERS: Yeah! Yeah! Yeah! [suspenseful music] [metal clanking] Mr. Frick. I'm giving you one more
chance to call off this strike. I'll make sure any man who
walks out never returns. We'll see. [dramatic music] [machinery clacking] [cog clicks] [dramatic music] NARRATOR: 2,000 steel
workers barricade the front of the plant to prevent Frick
from bringing in replacements. The fight has turned
personal, but Frick isn't about to back down. He calls in reinforcements. [train horn blowing] [music playing] For years, the
Pinkerton Detectives have been a private
police force best known for tracking down train robbers. They even stopped a plot to
assassinate Abraham Lincoln and were hired as
the president's personal bodyguards. But now, they've
become an army for hire with more men and guns
than the US Military. If you have the money,
they'll fight for you. And Frick has the money. We'll enter by the river,
take them by force if necessary. Remember your training. Follow orders. If they start shooting,
we'll hit them back hard. There is no place for cowardice. DAVID NASAW: The Pinkertons
were mercenaries. They were from out of town. They had no ties to Pittsburgh,
no ties to these workers. They were paid a wage
to wield their clubs. The moment Frick
made the decision to bring in Pinkertons,
the die was cast and the only way this strike
was going to end was in tragedy. MAN: Fire! NARRATOR: The building of
modern America is in full force. The city's teemed with
new construction projects built of steel. That steel travels around
the country on railroads that unite us as never before. The growth is driven by a
rivalry between the country's wealthiest men-- Andrew Carnegie and
John D. Rockefeller. CHARLES SCHWAB: The great
men of those times created incredible capabilities
that were truly important for the establishment of
a great, strong country. NARRATOR: But while the Ohio
oilman is quietly amassing his fortune, the
Pennsylvania steel king is dealing with a rebellion. [dramatic music] [chattering] 2,000 men barricade themselves
inside the Homestead plant causing steel production
to grind to a halt. Carnegie Steel's
chairman, Henry Frick, is in no mood to negotiate. Under pressure to
quell the revolt, Frick brings in the
Pinkertons, a mercenary army capable of out-gunning
the US Military, and their presence threatens
to be the spark that lights the powder keg. DAVID NASAW: Frick thought to
himself, when the workers see the Pinkertons, when they see
that I'm not gonna back down, they will back down. He thought a show of
strength, a show of resolve, was all that was needed
and that would be the end. He badly miscalculated. HEINDE: Go ahead. Keep going. Hold your ground. Stay calm. Stay calm. [chattering] [dramatic music] We're here to take
possession of this property. WORKERS: No! I suggest you turn
around and go home. You're not getting in. HEINDE: If you do
not stand aside, we will mow every
one of you down. WORKERS: [grumbling] Innocent men will
be on your hands. Tear down this barricade! WORKERS: [shouting] HEINDE: [grunting] [gunshot] Fire! Fire! Shoot at them. Shoot! [rapid gun fire] [groaning] [gunshot] [gunshot] WORKERS: [yelling] O'DONNELL: Keep your ground. Take it. [screaming] Fire! Fire! Fire! Fire! Fire! [echoing gunshot] [retching, vomiting] [somber music] NARRATOR: When the
fighting stops, nine Carnegie Steel workers
lie dead while countless others sustain severe injuries. But they managed to hold their
ground until Pennsylvania's governor sends in
the state militia to finally restore order. Homestead is back in the
hands of the management, but Andrew Carnegie's
problems are far from over. The public is outraged over the
violence blaming chairman Henry Frick directly. Many are demanding
justice for the dead. [suspenseful music] Mr. Frick? [gunshot] NARRATOR: The vast and
rapid growth of America is in full swing. Railroads now connect
all 44 states. Oil is the most precious
resource in the country. And steel is
building our cities. But growth at this pace
doesn't come without a cost. Andrew Carnegie is
making more steel than anyone else in the world. To meet this level
of production, his workers are on their feet
12 hours a day, six days a week. The conditions spur them
to barricade the plant leading Carnegie's
chairman, Henry Frick, to call in mercenaries. Fire! Shoot them! Shoot! WORKERS: [shouting] [rapid gun fire] NARRATOR: A bloody battle
leaves nine workers dead. Frick regains
control of Homestead. But while the carnage is
over, the public outcry is just beginning. DAVID NASAW: It was a
massacre, and not just in terms of the number of
injured and dead, but a massacre that any
civilians should be killed standing and
defending their plant. NARRATOR: Overnight, Homestead
becomes a searing symbol of life and death in
industrial America. [birds squawking] [suspenseful music] MAURY KLEIN: Carnegie
probably was appalled at what happened at Homestead. He prided himself on
portraying his company as an enlightened, progressive
company, which in many ways it was. What Homestead did
was to cast a stain on that and on his reputation
that he had a very hard time living down. NARRATOR: Carnegie extends
his stay in Scotland hoping the distance will allow the
controversy to blow over, but American reporters
track him down. Excuse me. Just-- just a word. CARNEGIE: No, gentlemen. Mr. Carnegie. CARNEGIE: Another
time, gentlemen. Just a word. I'm not in the habit
of giving interviews in the middle of public parks. Get out of my damned way! [music playing] NARRATOR: While Carnegie's
hounded by press abroad, at home, the public's
outrage is escalating. A new group is emerging calling
themselves the Anarchists. Known for their
violent tactics, they are beginning to strike out
whenever and wherever they see injustice. Now, they've turned their
attention to the massacre at Homestead demanding payback. Their target is the
chairman of Carnegie Steel. Henry Frick is determined to
get steel production back up to speed, but his
enemies have other plans. [suspenseful music] [dramatic music] Mr. Frick? [gunshot] [groans] [grunting] [groans] BOTH: [grunting] [groaning] [grunting] Get off of me! [music playing] NARRATOR: Andrew Carnegie
fights to save his steel empire after the bloody attempt
on his chairman's life. But just as Carnegie's
rivalry with Rockefeller reaches the breaking point,
a new threat emerges. REPORTERS: Mr. Morgan. Mr. Morgan. Mr. Morgan. Mr. Morgan, are we on the
verge of a depression? Not if we act wisely. NARRATOR: JP Morgan partners
with a famous inventor-- JP MORGAN: You're about to
become a very busy man, Edison. NARRATOR: --to spark
a revolution that changes the world forever. [applause] But every revolution
has a dark side. [suspenseful music] EDISON: I do not want the
House of Morgan associated with electricity. I have a chance to build here. Pierpont! What would it take to light
all the homes in New York City? This is what's going to happen. There's going to be
an end to this war. [applause] The best time to buy is when
there's blood on the streets. [electricity zapping]

Transcript for:Industrial Leaders and Their Impact

Transcript for:
Industrial Leaders and Their Impact