Narrator: INDUSTRIAL ICONS ANDREW CARNEGIE AND HENRY CLAY FRICK
CHANGED THE WORLD WITH STEEL...
WE CAN'T HAVE ANY KIND OF INFRASTRUCTURE AFTER 1865
WITHOUT STEEL.
[ TRAIN WHISTLE BLOWS ]
Narrator: ...AND TRANSFORM AMERICA INTO AN INDUSTRIAL SUPERPOWER.
THEY WERE A PERFECT FIT AT A TIME WHEN THIS INDUSTRY
WAS BECOMING THE GREATEST IN THE WORLD.
YOU HAVE TWO VISIONARIES -- GENIUSES, REALLY.
Narrator: BUT THERE'S ONLY ROOM FOR ONE AT THE TOP.
GET RID OF THEM.
ALL OF THEM.
[ CROWD CHANTING "STRIKE!" ]
THE CLIMAX -- A BLOODY SHOWDOWN.
PEOPLE DIED, AND HE WON.
MURDERER!
[ GUNSHOT ]
Narrator: THESE ARE THE EPIC STORIES OF MEN STRUGGLING FOR SUPREMACY,
BUILDING EMPIRES AND CHANGING THE COURSE
OF AMERICAN HISTORY FOREVER.
-- Captions by VITAC -- www.vitac.com
CAPTIONS PAID FOR BY DISCOVERY COMMUNICATIONS
IN 1892, DEMAND FOR STEEL IS BOOMING.
ANDREW CARNEGIE'S HOMESTEAD WORKS PRODUCES
NEARLY 800 TONS OF STEEL EVERY DAY,
A JUGGERNAUT DRIVING THE AMERICAN ECONOMY.
STEEL BRINGS CARNEGIE AND HIS PARTNER, HENRY CLAY FRICK,
IMMENSE FORTUNES, GREAT POWER,
AND ULTIMATELY THRUSTS THEM INTO DIRECT CONFLICT.
FRICK'S SENDING IN THE PINKERTONS,
BUT WE'LL BE READY FOR 'EM.
THIS IS OUR TOWN!
All: YEAH!
Narrator: AS TENSIONS RISE, THE INFAMOUS PINKERTON DETECTIVES ARE CALLED
TO KEEP THE PEACE.
DO NOT RETREAT.
DO NOT STOP UNTIL WE'RE ON THE PROPERTY.
MOVE.
[ INDISTINCT SHOUTING ]
IT'S THE BLOODY BATTLE OF HOMESTEAD...
THIS IS OUR HOME! THIS IS OUR LAND!
...A DIRECT RESULT OF TWO TITANS FIGHTING TO WIN.
PUT IT DOWN!
Man: DROP IT!
DECADES BEFORE THE HOMESTEAD SHOOTOUT,
ANDREW CARNEGIE IS A RISING STAR IN THE INVESTMENT WORLD.
Nelson: CARNEGIE'S A STORYTELLER.
HE COULD MAKE FRIENDS WITH ANYONE.
HE IS VERY GOOD AT SELLING THINGS.
Narrator: CUTTHROAT DEALS MAKE HIM A MILLIONAIRE BY 33.
ANDREW CARNEGIE BUYS DEFECTIVE RIFLES FROM THE U.S. GOVERNMENT
AND RESELLS THEM TO THE PENNSYLVANIA MILITIA --
SOMETHING THAT GETS HIM INTO A GREAT DEAL OF TROUBLE.
IT ALSO MAKES HIM HIS FIRST FORTUNE.
West: CARNEGIE HAD COME FROM A VERY POOR BACKGROUND.
AND WHEN YOU COME FROM THAT TYPE OF BACKGROUND,
IT OFTEN MAKES YOU MORE WILLING TO ENGAGE IN BUSINESS PRACTICES
THAT, PERHAPS, OTHER PEOPLE WOULD NOT USE.
Narrator: POST-CIVIL WAR AMERICA ENTERS A PERIOD OF EXPLOSIVE GROWTH.
WITH CASH TO BURN, CARNEGIE SEIZES AN OPPORTUNITY.
Nelson: THE RAILROAD SYSTEM IS INITIALLY MATURING IN THE 1860s AND 1870s.
WOODEN BRIDGES HAVE TO GO.
THEY HAVE TO BE REPLACED BY SOMETHING.
AND CARNEGIE SEES THAT STEEL HAS TO BE AT THE CENTER OF THAT,
AND HE WANTS TO BE THERE.
Carnegie: I REALLY APPRECIATE YOU TAKING THE TIME
TO SHOW ME AROUND THIS PROPERTY.
THANK YOU, MR. CARNEGIE. THE PLEASURE'S ALL MINE.
Narrator: IN 1873, CARNEGIE GOES FROM INVESTOR TO OWNER-OPERATOR
WHEN HE BUILDS THE J. EDGAR THOMSON STEEL WORKS.
NOW, WHERE IS THE RAILROAD COMING IN?
THE RAIL LINE COMES WITHIN ABOUT 500 YARDS OF THE PROPERTY.
Nelson: TO THIS POINT, STEEL WAS EXPENSIVE.
STEEL WAS SOMETHING YOU USED IN RAZOR BLADES.
IT WAS SOMETHING YOU USED IN SWORDS.
I THINK THERE'S AN EXCELLENT OPPORTUNITY HERE.
Narrator: CARNEGIE BETS ON A REVOLUTIONARY WAY
TO MASS-PRODUCE STEEL -- IN A BESSEMER FURNACE.
Nelson: CARNEGIE'S THE PERSON WHO SETS UP THE FIRST STEEL-ROLLING MILL
THAT USES ENTIRELY THE BESSEMER PROCESS.
THE IRON NEVER GETS COLD.
AND OUR BESSEMER CONVERTERS WILL BE OVER HERE, YES?
YOU KNOW YOUR STEEL FACTORY.
THE BESSEMER PROCESS GIVES YOU CHEAP STEEL.
IT GIVES YOU GOOD STEEL.
YOU COULD TAKE SOMETHING THAT COSTS $160 A TON
AND PRODUCE IT FOR $7 OR $8 A TON.
THIS IS ASTONISHING.
HOW MANY MEN WILL BE ON THE FLOOR?
IT'LL BE 1,000 MEN TO START.
CARNEGIE'S A VISIONARY.
HE SEES WHAT STEEL IS.
HE SEES WHAT STEEL CAN DO.
Carnegie: MOST WOULD STICK WITH IRON, BUT STEEL IS THE FUTURE.
AND THAT IS EXACTLY WHY THIS IS GOING TO WORK.
Narrator: EARLY ON, CARNEGIE UNDERSTANDS
THERE IS ONE ELEMENT ESSENTIAL FOR HIS OPERATION -- COAL.
¶¶
HENRY CLAY FRICK GROWS UP ON THE COAL-RICH LAND
OF WESTERN PENNSYLVANIA.
Nelson: UNDERNEATH HIM WAS CONNELLSVILLE COAL,
WHICH IS THE BEST COAL REALLY ON THE PLANET AT THE TIME.
IT MUST BE PACKED AS TIGHTLY AS POSSIBLE ALONG THE SEAMS.
YES, SIR.
I'M NOT GONNA BE HERE TO
HOLD YOUR HAND THROUGH THIS NEXT TIME.
Clark: FRICK REALLY DID HAVE A DIFFERENT APPROACH
THAN CARNEGIE.
HE WAS SORT OF A BARE-KNUCKLED BRAWLER KIND OF GUY
IN TERMS OF DOING BUSINESS.
Narrator: FRICK SEES THE REAL MONEY IS IN PURIFIED COAL, KNOWN AS COKE.
WE FILL IN THE SEAMS.
THAT ALLOWS THE HEAT IN THE OVEN
TO REACH ITS MAXIMUM TEMPERATURE.
WHEN THE HEAT'S AT ITS MAXIMUM TEMPERATURE,
WE BURN OFF ALL THE IMPURITIES.
Sanger: COKE IS THE PRODUCT OF REDUCING BITUMINOUS COAL IN AN OVEN.
AND THE MAGIC OF COKE WAS THAT WHEN MIXED WITH IRON,
IT MADE STEEL.
Narrator: FRICK STARTS HIS COKING BUSINESS IN 1870 AT THE AGE OF ONLY 21.
Sanger: HE GREW UP WITH A BIG SENSE OF BUSINESS
AND HOW BUSINESS OPERATES.
Narrator: AND LIKE CARNEGIE, FRICK ENVISIONS AN AMERICA
BOOMING WITH INDUSTRY.
Pepperell: FRICK AND HIS ASSOCIATES BEGAN TO BUILD
HUNDREDS, THOUSANDS OF COKE OVENS
AND TO BUY OUT ANY OTHER RIVAL PRODUCERS.
Narrator: IN 1873, CARNEGIE AND FRICK
ARE TWO OF THE RICHEST MEN IN AMERICA
WHEN MONEY MARKETS AROUND THE WORLD CRASH IN TOTAL PANIC.
Man: EXTRA! EXTRA! READ ALL ABOUT IT!
Nelson: LOTS AND LOTS OF FIRMS GO UNDER IN THE PANIC OF 1873.
LOTS AND LOTS OF BANKS GO UNDER IN THE PANIC OF 1873.
Narrator: NO ONE IS IMMUNE TO THE CRISIS.
Nelson: IT'S A TREMENDOUS FINANCIAL CALAMITY.
Narrator: THE PRICE OF STEEL AND COKE PLUMMETS.
CARNEGIE RESPONDS AGGRESSIVELY.
Carnegie: EXPAND WHEN NO ONE DARES RISK.
Man: I'M NOT SURE THE RISK IS WORTH IT.
GENTLEMEN, IT WILL GET BETTER.
WHEN EVERYONE IS SELLING, CARNEGIE GOES ON A BUYING SPREE.
CARNEGIE HAD THE KNACK OF MAKING MONEY DURING GOOD TIMES AND BAD.
IT WAS ONE OF HIS PARTS OF HIS BUSINESS GENIUS
THAT HE TOOK ADVANTAGE OF DOWNTURNS.
MARKETS WILL GO UP AND DOWN OVER THE NEXT TWO TO FIVE YEARS.
Nelson: WHAT CARNEGIE HAS IS ACCESS TO INVESTORS.
HE SEES ANY COMPETITORS AROUND HIM GOING UNDER,
HE BUYS THEM AT PENNIES ON THE DOLLAR.
AND IN ABOUT 5, 10 YEARS, WHEN EVERYTHING IS INCREASED,
WE WILL BE VERY PROFITABLE.
THIS IS JUST YOUR THEORY SO FAR.
THIS IS BUSINESS, GENTLEMEN. IT WILL WORK.
IT'S STRAIGHT OUT OF THE CARNEGIE PLAYBOOK --
GAIN MARKET SHARE WHEN THE PRICE IS RIGHT.
HE UNDERSTANDS THAT IF HE CAN GAIN SOMETHING
CLOSE TO A MONOPOLY -- MORE THAN 50% OF THE SHARE --
HE'S THE PERSON THAT PROVIDES THE STEEL
FOR THE ENTIRE COUNTRY.
GUARANTEED.
NOT A BAD THING.
ALL RIGHT.
YOU HAVE A DEAL.
Narrator: IN 1875, CARNEGIE OPENS AMERICA'S LARGEST
AND MOST MODERN STEEL WORKS.
Nelson: THE EDGAR THOMSON WORKS IS VERY EFFICIENT
FOR PRODUCING ONE THING, AND THAT'S ROLLED STEEL,
WHICH IS DESIGNED FOR RAILS.
Narrator: HE BETS BIG ON RAILROADS.
AND STEEL RAILS BECOME THE BASIS FOR CARNEGIE'S FORTUNE.
Narrator: WHILE CARNEGIE BATTLES THE DEPRESSION
WITH SHREWD BUSINESS TACTICS, FRICK IS FORCED TO
BORROW HEAVILY TO TAKE OVER THE COAL FIELDS.
Sanger: WHEN THE PANIC WAS OVER,
THERE WAS THIS ENORMOUS DEMAND FOR STEEL.
AND THE COKE BECAME JUST, FRANKLY, GOLD.
Narrator: BY THE END OF THE DECADE,
FRICK CONTROLS 80% OF THE COAL MINED IN WESTERN PENNSYLVANIA.
Pepperell: VERY SOON, ALL THESE ACQUISITIONS PAID OFF HANDSOMELY
FOR THE FRICK COMPANIES.
SOMEWHERE BETWEEN $80,000 AND $100,000 A YEAR INCOME.
MANY, MANY MILLIONS OF DOLLARS IN TODAY'S CASH.
Narrator: FRICK IS NICKNAMED "THE KING OF COKE."
HE RULES HIS MEN WITHOUT REMORSE.
Sanger: THESE OVENS WERE TERRIBLE THINGS.
IT WAS OFTEN REFERRED TO AS LIKE DANTE'S INFERNO, AND IT WAS.
IT WAS REALLY AN APPALLING WAY TO LIVE.
Narrator: IN RESPONSE, UNIONS GROW,
AND FRICK MOVES SWIFTLY TO CHOP THEM DOWN.
MY MEN ARE BREAKING THEIR BACKS WORKING FOR THIS COMPANY,
BUT THERE'S BARELY COMPENSATION.
THE RATE I PAY IS BEHOLDEN TO WHAT THE MARKET WILL BEAR.
IT'S THAT SIMPLE.
Clark: FRICK WAS A RUTHLESS BUSINESSMAN.
ETHICS WASN'T NECESSARILY HIGH ON HIS LIST.
IN ORDER FOR H.C. FRICK AND CO. TO CONTINUE TO WORK,
TO CONTINUE TO GROW,
THE MEN WILL BE REQUIRED TO WORK
12- AND 14-HOUR DAYS AT THE COKE PLANT.
YOU COULDN'T WORK IN A COAL MINE OR A COKE OVEN
MUCH PAST 45 OR 50, IF YOU SURVIVE THAT LONG.
ALL WE'RE ASKING FOR IS JUST A LITTLE BIT MORE
SO THEY CAN AFFORD TO FEED THEIR FAMILIES.
HE WAS A MAN OF HIS DAY, AND HE DIDN'T LIKE BEING TOLD
WHAT TO DO OR HOW TO DO IT WITH HIS OWN PRIVATE ENTERPRISE.
YOU SHOULD TELL THE MEN THAT THEY SHOULD BE AT THE PLANT
AT 6:00 A.M. TOMORROW MORNING.
Narrator: THE COKE INDUSTRY ENDS THE 1870s ON A HIGH,
LARGELY BECAUSE THE STEEL BUSINESS IS SOARING.
CARNEGIE WAS MAKING TENS OF MILLIONS OF DOLLARS
EVERY YEAR EARLY ON.
Narrator: AND LIKE FRICK, MUCH OF CARNEGIE'S PROFIT
COMES AT THE EXPENSE OF HIS WORKERS.
Clark: THEY USED TO REFER TO STEEL MILLS IN THAT ERA
AS "HELL WITH THE LID OFF."
[ MEN GRUNTING ]
ONE SHIFT WOULD BE WORKING 72 HOURS A WEEK,
WHILE THE OTHER SHIFT WORKED 96 HOURS A WEEK.
ONE HOLIDAY A YEAR -- JULY 4th.
CARNEGIE WAS AS RUTHLESS AS ANY EMPLOYER OF THE DAY
IN TERMS OF DRIVING DOWN LABOR COSTS,
SQUEEZING EVERY LAST OUNCE OF PRODUCTIVITY OUT OF HIS WORKER.
Narrator: THE RELENTLESS DRIVE TO SUCCEED
WILL LEAD THE MAN OF STEEL AND KING OF COKE
TO FORGE AN UNPRECEDENTED ALLIANCE
THAT WILL RULE 1880s AMERICA AND, SOON, THE WORLD.
ARE YOU WITH ME?!
All: YEAH!
Narrator: BUT THIS PROGRESS WILL COME AT A DEADLY PRICE.
Narrator: AFTER RIDING OUT THE DEPRESSION OF THE 1870s,
ANDREW CARNEGIE AND HENRY CLAY FRICK
CATAPULT AMERICA'S MANUFACTURING TO UNPRECEDENTED NEW HEIGHTS.
THIS IS THE CONFLUENCE OF HAVING LOTS OF COKE
NEXT TO LOTS OF GOOD IRON.
IT MAKES BEAUTIFUL STEEL.
STEEL IS NECESSARY NOT JUST FOR RAILS,
BUT ALSO FOR BUILDING BIG BUILDINGS, FOR BUILDING BRIDGES.
AMERICA IS EXPORTING, IN LARGE QUANTITIES,
MANUFACTURED FOOD,
AND STEEL CANS ARE A BIG PART OF WHAT MAKES CARNEGIE HIS FORTUNE.
FRICK AND CARNEGIE ARE DOING GREAT THINGS.
Narrator: BUT THIS METEORIC RISE WILL HAVE ITS GROWING PAINS,
AS FRICK AND CARNEGIE STRUGGLE TO MANAGE COSTS.
[ BELL TOLLING ]
Clark: BECAUSE OF THE CIVIL WAR,
THE ECONOMY HAD BOOMED THROUGH THE LATE '60s.
IN THE 1870s, THE ECONOMY TOOK A DOWNTURN,
AND THAT IS WHEN YOU SAW THE FIRST EFFORT
TO REALLY GO AFTER THE UNIONS THAT WERE JUST EMERGING.
WE HAD THE MOLLY MAGUIRES INCIDENT IN PENNSYLVANIA,
WHERE THE MINERS' UNION HAD GOTTEN A FOOTHOLD
IN NORTHEASTERN PENNSYLVANIA,
AND THE COAL COMPANIES CAME DOWN VERY HARD ON THEM,
ARRESTING 19 OF THEIR LEADERS ON TRUMPED-UP CHARGES
AND HANGING THEM.
Narrator: ORGANIZED WORKERS ARE THE LARGEST THREAT
TO FRICK'S COAL AND COKE ENTERPRISE.
Clark: FRICK WAS SORT OF TYPICAL OF THE TIME.
HE JUST DID NOT THINK UNIONS MADE SENSE
MORALLY, ETHICALLY, ECONOMICALLY.
THEY WERE HIS MILLS AND HIS MINES,
AND HE THOUGHT HE COULD DO WITH THEM AS HE SAW FIT.
AND I THINK THAT BASICALLY EXTENDED
TO HIS VIEWS OF HIS WORKERS.
Frick: THANK YOU SO MUCH FOR HAVING US.
PLEASE HAVE A SEAT.
Frick: I'LL ADMIT I WAS A BIT SURPRISED
TO RECEIVE YOUR INVITATION TO MEET.
Narrator: IN 1881, CARNEGIE SETS OUT TO DO A DEAL WITH FRICK,
WHO HAS SOMETHING THAT CARNEGIE WANTS --
LOTS OF QUALITY COKE.
CARNEGIE APPROACHED FRICK BECAUSE CARNEGIE NEEDED COKE
TO MAKE STEEL IN HIS MILLS.
AND FOR CARNEGIE TO INVEST IN COKING COAL FIELDS
WAS NEXT TO IMPOSSIBLE
BECAUSE FRICK HAD ACQUIRED MOST OF THAT LAND.
Narrator: SENSING A HUGE OPPORTUNITY,
CARNEGIE MOVES TO BRING FRICK ON HIS SIDE.
WHY I BROUGHT YOU HERE IS TO TALK SPECIFICALLY ABOUT
HOW YOUR COMPANY AND MY COMPANY CAN JOIN TOGETHER.
WHAT I NEED FROM YOU IS A STEADY SUPPLY OF COKE
TO MY STEEL COMPANY.
Pepperell: FRICK REALIZED THAT THE PLACE WHERE
THE BIG PROFITS COULD BE MADE WAS NOT AS A COKE SUPPLIER,
BUT AS A STEEL PRODUCER.
WELL, I'M BRINGING TWO MORE BESSEMER CONVERTERS
OVER FROM ENGLAND.
BESSEMERS. A WISE INVESTMENT.
HE'S FIRMLY SET HIS SIGHTS ON THAT,
HOPING THAT HIS RELATIONSHIP WITH CARNEGIE --
AT THAT TIME, A VERY NEW RELATIONSHIP --
WILL ENABLE HIM TO TAKE PART IN THAT INDUSTRY --
SOMETHING THAT CARNEGIE REALLY DIDN'T WANT TO HAPPEN.
Narrator: AGGRESSIVE ACQUISITIONS HAVE LEFT FRICK WITH A MOUND OF DEBT.
NOW HE'S DESPERATE FOR CASH FLOW.
AS USUAL, CARNEGIE'S TIMING IS IMPECCABLE.
MR. CARNEGIE, I AM INTERESTED IN BEING
THE SOLE SUPPLIER OF COKE TO CARNEGIE BROTHERS.
IN EXCHANGE, I'M WILLING TO OFFER AN 11% SHARE
IN H.C. FRICK AND CO.
IF YOU FIND THESE TERMS NEGOTIABLE,
I SAY WE MAKE A DEAL.
I BELIEVE THOSE TERMS CAN BE ARRANGED.
Sanger: YOU HAVE TWO VISIONARIES --
BRILLIANT MINDS, GENIUSES, REALLY --
WORKING TOGETHER TO CREATE SOMETHING.
IT REALLY IS A VERY IMPORTANT STUDY, I THINK,
JUST AT THE HUMAN LEVEL OF WHAT COOPERATION CAN BRING,
THE HEIGHTS THAT IT CAN GO,
AND THE DEPTH TO WHICH IT CAN FALL.
Narrator: IT SEEMS TO BE A PERFECT PARTNERSHIP,
BUT IT'S NOT LONG BEFORE BAD BLOOD FLOWS BETWEEN
THESE TWO TITANS.
West: CARNEGIE WAS PERFECTLY ADEPT AT MANIPULATING OPPONENTS,
ENGAGING IN SECRET DEALS IN ORDER TO FURTHER HIS BUSINESS.
SO HE WOULD DEFINITELY PUSH THE LINES OF ETHICAL CONDUCT
IN HIS BUSINESS PRACTICES.
Carnegie: GENTLEMEN, IT IS MOST WONDERFUL TO HAVE YOU HERE.
Man: PLEASURE, SIR.
BUT AS YOU MAY KNOW, I, UH, OWN A FEW STOCKS
IN FRICK COKE COMPANY, AND I DESIRE TO ATTAIN SOME MORE.
Narrator: CARNEGIE SEES FRICK'S OFFER OF AN 11% SHARE AS MEAGER
AND DEVISES A PLAN TO GAIN MORE OF H.C. FRICK AND COMPANY.
Nelson: ANDREW CARNEGIE NEEDS PEOPLE TO LOOK LIKE
THEY'RE NOT ANDREW CARNEGIE --
SOMEONE WHO WILL BUY STOCK IN THE FIRM FOR YOU,
ON YOUR BEHALF SECRETLY,
SO THAT YOU CONTROL MORE AND MORE OF IT.
IT DOES REQUIRE SECRECY AND UTMOST CONFIDENCE.
CAN I HAVE THAT FROM YOU?
EVERYTHING WE SAY STAYS HERE.
WONDERFUL.
I WOULD LIKE YOU TO START WITHIN THE WEEK,
AND THEN AFTER THREE WEEKS, YOU CAN START BUYING SOME.
DO SMALL SHARES AT FIRST,
AND AFTER A WHILE, I SHALL ATTAIN MORE.
Narrator: WITH THIS SLEIGHT OF HAND,
ANDREW CARNEGIE BECOMES THE LARGEST SHAREHOLDER
OF H.C. FRICK AND COMPANY.
HE ACQUIRED MORE THAN 50%, LEAVING FRICK
ONLY ABOUT 16% OF THE SHARES IN HIS OWN BUSINESS.
Narrator: WHEN FRICK REALIZES WHAT CARNEGIE'S UP TO,
HE DEMANDS A PIECE OF CARNEGIE'S COMPANY IN RETURN.
MR. CARNEGIE.
I'M HAVING A HARD TIME UNDERSTANDING YOUR METHODS.
WE ARE NOT A COMPLETE PARTNERSHIP.
TRUST ME, THIS IS IN YOUR BEST INTEREST.
Pepperell: CARNEGIE WAS A VERY, VERY ABLE POLITICIAN.
SO HE FLATTERED, HE DEFLECTED VERY ELOQUENTLY.
I'M STARTING TO BELIEVE THAT I'VE MADE A DEAL
WITH JUDAS HIMSELF.
HENRY, THAT'S A BIT HARSH, ISN'T IT?
WHEN WILL I SEE A SHARE IN YOUR COMPANY?
WHEN THE TIME IS RIGHT.
FRICK HAD BEEN MISLED
INTO WHAT THE LONG-TERM ADVANTAGES WOULD BE
TO BE PART OF THIS HUGE STEEL EMPIRE
THAT WAS FIRMLY CARNEGIE'S.
[ SIGHS ]
AND THIS BECAME A MAJOR BONE OF CONTENTION BETWEEN THEM.
FRICK BECAME A VIRTUAL EMPLOYEE OF CARNEGIE.
Narrator: RIGHT OUT OF THE GATE, CARNEGIE UNDERMINES THEIR PARTNERSHIP...
YOU ARE SUGGESTING MR. FRICK ACTED ALONE.
DIFFERENCES IN THEIR PERSONALITIES
JUST BLEW IT APART.
Man: LET'S GO!
Narrator: ...IGNITING A DRAMATIC AND BLOODY CHAIN OF EVENTS.
Narrator: AS ANDREW CARNEGIE AND HENRY CLAY FRICK
DOMINATE THE STEEL INDUSTRY DURING 1880s AMERICA,
THEIR PERSONAL RIVALRY GROWS.
BOTH CARNEGIE AND FRICK WERE VERY AGGRESSIVE
IN THEIR BUSINESS PRACTICES.
BUT CARNEGIE WAS THE MASTER OF CUTTHROAT BUSINESS PRACTICES.
Narrator: CARNEGIE SHOWS HIS TRUE COLORS WITH HIS NEW PARTNER, FRICK.
Carnegie: I OWN A FEW STOCKS IN FRICK COKE COMPANY,
AND I DESIRE TO ATTAIN SOME MORE.
USING THESE SHAREHOLDERS, CARNEGIE EFFECTIVELY HAS
MORE THAN 50% CONTROL OF H.C. FRICK AND COMPANY.
Narrator: HENRY CLAY FRICK IS DOWN BUT NOT OUT.
[ TRAIN WHISTLE BLOWING ]
IN 1883, ANDREW CARNEGIE'S LEGACY IS SECURE
WHEN HE PURCHASES THE HOMESTEAD WORKS,
A CUTTING-EDGE STEEL MILL OUTSIDE OF PITTSBURGH.
Pepperell: HOMESTEAD WAS ABOUT 100 ACRES.
IT EMPLOYED 3,500 WORKERS.
Nelson: THE HOMESTEAD WORKS IS THIS VAST, HIGH-TECH,
VERY COMPLICATED TESTING GROUND FOR NEW ENGINEERING APPROACHES
THAT YOU'RE NOT GONNA FIND ANYWHERE ELSE.
OTHER STEEL WORKS ARE VERY SPECIALIZED.
THEY PRODUCE ONE OR TWO THINGS.
THE HOMESTEAD WORKS PRODUCES A LOT OF THINGS.
Narrator: CARNEGIE PROMOTES FRICK TO THE POSITION OF MANAGER
WITHOUT A SHAREHOLDER OPTION.
Pepperell: CARNEGIE DIDN'T WANT FRICK TO EVER BE
AN INDEPENDENT STEEL-PRODUCING PERSON.
HE WAS QUITE HAPPY FOR HIM TO BE A VERY VALUED EMPLOYEE.
FRICK, THE EVERYDAY MANAGER.
CARNEGIE, THE RATHER REMOTE BIG BOSS.
Narrator: DESPERATE FOR A PIECE OF CARNEGIE'S STEEL BUSINESS,
FRICK OFFERS TO SELL ALL BUT 4% OF HIS SHARE
IN H.C. FRICK AND COMPANY.
FRICK, LIKE CARNEGIE, SAW THE TREMENDOUS POSSIBILITIES
OF HAVING A VIRTUAL MONOPOLY OF STEEL PRODUCTION
IN THE UNITED STATES.
HE WANTED PART OWNERSHIP OF THAT.
Narrator: THEY BATTLE IT OUT THROUGH A SERIES OF LETTERS.
"DEAR ANDREW, I AM RESPECTFULLY REQUESTING
A SHARE OF CARNEGIE BROTHERS STOCK
IN EXCHANGE FOR YOUR HIGHER INTEREST
IN H.C. FRICK AND COMPANY.
HENRY C. FRICK."
Narrator: CARNEGIE SEES FRICK'S MOVE AS SHORT-SIGHTED.
"DEAR HENRY, I CANNOT IMAGINE
HOW YOUR PRIDE PERMITTED YOU TO THINK, FOR ONE MOMENT,
OF SINKING TO AN INSIGNIFICANT HOLDER OF 4%
IN YOUR OWN CREATION.
THE IDEA IS SUICIDAL."
CARNEGIE WAS ALWAYS UNDERCUTTING HENRY CLAY FRICK.
"YOUR CAREER MUST BE IDENTIFIED WITH THE FRICK COKE COMPANY.
YOU NEVER COULD BECOME
THE CREATOR OF CARNEGIE BROTHERS AND COMPANY."
CARNEGIE NOW HAD A REALLY FIRM HOLD
ON COKE PRODUCING AND STEEL PRODUCING,
AND PROFITS IN TODAY'S FIGURES INTO THE BILLIONS OF DOLLARS.
[ BELL CHIMING ]
Narrator: IN 1886, AN UNEXPECTED DEATH
LEAVES A GAPING HOLE IN CARNEGIE'S CORPORATE HIERARCHY.
Pepperell: CARNEGIE'S YOUNGER BROTHER, TOM, DIED,
AND HE WAS A PARTNER IN THE FIRM -- A DIRECTOR.
Narrator: CARNEGIE KNOWS FRICK IS THE PERFECT MAN FOR THE JOB.
Nelson: FRICK HAS A CAPACITY FOR MASTERING FINANCIAL DETAIL
THAT CARNEGIE'S NOT ESPECIALLY INTERESTED IN.
Narrator: HE HAS LITTLE CHOICE BUT TO GIVE FRICK WHAT HE WANTS --
A SHAREHOLD IN THE COMPANY AND THE TITLE OF PRESIDENT.
NOW, THE FRICK COKE COMPANY WILL BENEFIT FROM THIS,
AS WELL AS THE CARNEGIE BROTHERS COMPANY.
WHEN DEALING WITH CARNEGIE, THERE'S ALWAYS A CATCH...
YOU WANT A SIGNATURE TONIGHT?
...THE IRONCLAD AGREEMENT.
BY ALL MEANS, YES.
THAT WOULD MAKE THE PROGRESS A LOT FASTER.
I COULD CERTAINLY TAKE SOME TIME.
I'M SURE THESE GENTLEMEN WOULD LIKE TO TAKE THE TIME,
AS WELL, TO REVIEW THE DOCUMENT.
Nelson: THE IRONCLAD AGREEMENT IN THE 1880s
IS INITIALLY DESIGNED TO DEAL WITH
THE PROBLEM OF PEOPLE DYING.
THEY'VE WRITTEN IT WITH YOU.
IF A PARTNER DIED, THEN IT WAS POSSIBLE
FOR THE SHAREHOLDERS TO BUY OUT HIS INDUSTRY.
Narrator: A SMALL PROVISION IN THE CONTRACT
YIELDS MORE POWER TO CARNEGIE.
DID YOU CONTRIBUTE TO SECTION THREE?
Pepperell: THE AGREEMENT PROVIDED THAT A MAJORITY SHAREHOLDER COULD BUY
THE SHARES OF A MINORITY SHAREHOLDER.
SO IF CARNEGIE WANTED TO BUY OUT FRICK, HE COULD.
COULD FRICK BUY THE SHARES THAT CARNEGIE HAD?
ABSOLUTELY NOT.
BUT WE WILL NEED SIGNATURES RELATIVELY, UH, QUICKLY.
ALL RIGHT, WELL, THEN, LET'S -- LET'S GO AHEAD
AND GET THE DOCUMENT SIGNED.
ALL RIGHT. WELL, THANK YOU.
Nelson: IT'S SOMETHING THAT FRICK SIGNS,
NOT REALLY UNDERSTANDING THAT IN THE FUTURE,
IT'S POSSIBLE THAT HE WILL BE CLOSED OUT OF THE FIRM ENTIRELY.
Narrator: WHILE EXECUTIVES WORK TO SMOOTH OUT TURMOIL AT THE TOP,
A BIGGER PROBLEM IS RISING ON THE FACTORY FLOOR.
[ MAN SCREAMING ]
[ INDISTINCT SHOUTING ]
Man: HOLD HIM DOWN! HOLD HIM DOWN!
WE NEED A FOREMAN IN HERE!
HOMESTEAD, LIKE OTHER PLANTS, HAD ITS HUGE SHARE OF ACCIDENT.
WE NEED SOME HELP IN HERE!
Clark: AMPUTATIONS, SEVERE BURNS,
PEOPLE BREATHING NOXIOUS GASES.
PEOPLE WERE KILLED ON AT LEAST A WEEKLY BASIS.
LIFE WAS CHEAP.
THE WORK WAS HARD.
THE CONDITIONS WERE HORRENDOUS.
Sanger: THESE IMMIGRANT WORKERS WERE LIVING OFF OF PENNIES,
AND CARNEGIE AND FRICK HAD MILLIONS.
Man: LOOK, MEN, THERE ARE POWERFUL PEOPLE ON OUR SIDE.
WE DON'T HAVE TO STAND FOR THIS.
THE PROFITS FOR THIS PLANT ARE IN THE MILLIONS.
THE UNION PROTECTS OUR HIDE AND OUR POCKETS.
Narrator: THE AMALGAMATED ASSOCIATION OF STEEL AND IRON WORKERS,
THE MOST POWERFUL UNION IN THE COUNTRY,
MOVES IN TO DEMAND HIGHER WAGES AND SHORTER DAYS.
Pepperell: THE AMALGAMATED ASSOCIATION OF IRON AND STEEL WORKERS
WERE THE UNION THAT WAS ALREADY ESTABLISHED
AT THE HOMESTEAD PLANT WHEN CARNEGIE PURCHASED IT.
IT HAD BEEN QUITE AN EFFECTIVE UNION.
BUT AT THE TIME, THERE WERE NO REGULATIONS ABOUT
MINIMUM HOURS OF WORK, MINIMUM RATES OF PAY,
NO HEALTH AND SAFETY REGULATIONS.
WE NEED TO BE SAFE AT WORK.
HOW ARE YOU GONNA FEED YOUR FAMILY IF YOU CAN'T WORK?
WHAT ABOUT OUR JOBS?
READ THIS.
IT'LL TELL YOU EVERYTHING YOU NEED TO KNOW.
CARNEGIE BELIEVED THAT WORKERS MADE TOO MUCH MONEY.
AND FOR SOMEBODY WHO'S CONCERNED ABOUT COST ACCOUNTING,
LIKE CARNEGIE IS, HE FINDS THE UNIONS TO BE TROUBLING.
Narrator: KNOWING FRICK'S HISTORY OF UNION BUSTING,
CARNEGIE LEAVES HIM IN CHARGE OF THE DAY-TO-DAY NEGOTIATIONS.
FRICK WAS SORT OF THE GUY WITH THE BLACK HAT,
AND CARNEGIE, I THINK, WANTED TO BE SEEN AS THE GUY
IN THE WHITE HAT.
WE GOT TO WORK TOGETHER.
THERE'S MORE OF US THAN THERE ARE OF THEM.
WE'RE YOUR BROTHERS.
WE'RE GONNA FIGHT TOGETHER,
AND WE'RE GONNA EARN A LIVING WAGE.
GET YOUR MEN BACK TO WORK.
YES, GO BACK INTO THE WORK YOU MIGHT NOT WALK OUT OF AGAIN!
WHAT YOU'RE ASKING IS MORE THAN THE INDUSTRY CAN BEAR.
THE SKILLED WORKERS ARE WITH ME.
[ Chuckling ] SKILLED WORKERS!
I CAN GET HUNDREDS, THOUSANDS OF SKILLED WORKERS --
LABORERS, JUST LIKE YOU, FROM PITTSBURGH TO PHILADELPHIA,
HERE BY NOON TOMORROW TO FILL YOUR SHOES
AND THE SHOES OF EVERY OTHER WORKER HERE.
Clark: IF THERE WAS ANY OPPORTUNITY TO BREAK THEM
OR GET RID OF THEM, HE WOULD DO THAT.
FRICK TOOK A VERY, VERY HARD LINE ON UNIONS.
Narrator: IN HIS NEW ROLE AT CARNEGIE BROTHERS,
FRICK NOW HAS THE POWER TO HANDLE THINGS HIS WAY.
GET RID OF THEM.
ALL OF THEM.
I DON'T THINK CARNEGIE REALLY UNDERSTOOD
PRECISELY WHAT FRICK HAD IN MIND.
STRIKE! STRIKE!
Narrator: CARNEGIE'S DECISION TO LEAVE FRICK IN CHARGE
WILL CHANGE THE COURSE OF AMERICAN HISTORY.
[ SHOUTS INDISTINCTLY ]
Narrator: IN THE EARLY MONTHS OF 1892,
TENSIONS INSIDE THE HOMESTEAD STEEL MILL
REACH A BOILING POINT.
CARNEGIE AND FRICK SET ASIDE THEIR DIFFERENCES
TO BATTLE THE WORKERS' UNION TOGETHER.
Sanger: THE UNIONS WANTED HIGHER WAGES, SHORTER HOURS.
CONDITIONS WERE PERFECTLY APPALLING.
[ SCREAMING ] HOLD HIM DOWN!
THE WORKERS WERE SIMPLY COGS IN THE WHEEL.
THEY WERE ALMOST NON-HUMAN.
Clark: CARNEGIE AND FRICK WERE UNITED ON THE IDEA
THAT THEY WERE GOING TO GET RID OF THE UNION.
Narrator: CARNEGIE PUTS FRICK IN CHARGE OF DAY-TO-DAY NEGOTIATIONS...
GET YOUR MEN BACK TO WORK.
...A DECISION THAT WILL HAVE DEADLY RESULTS.
Nelson: FRICK WAS INTERESTED IN DRIVING DOWN PRICES.
AND THE AMALGAMATED ASSOCIATION
WAS THE THING HE HATED MORE THAN ANYTHING.
Narrator: HIS APPROACH TO THE STEEL UNION IS SIMPLE.
WORKERS' RATES MUST FOLLOW THE SELLING PRICE OF THE PRODUCT.
Clark: IN 1892, CARNEGIE AND FRICK SENT A MESSAGE TO
THE AMALGAMATED UNION IN HOMESTEAD
THAT THE WAGES HAD TO FALL
AND THAT THE MILL WAS GOING TO OPERATE NON-UNION IN THE FUTURE.
Man: WE'RE BROTHERS IN THIS.
WE HAVE TO STAY TOGETHER SO OUR FAMILIES CAN EAT.
IF FRICK THINKS WE'RE GONNA BACK DOWN,
HE DOESN'T KNOW THE HOMESTEAD BOYS!
ARE YOU WITH ME?!
All: YEAH!
THEN WE'RE GONNA STRIKE!
STRIKE! STRIKE!
[ ALL CHANTING "STRIKE!" ]
THEY'RE GOING TO STRIKE.
I SAY WE BREAK IT.
BRING IN ALL NEW PEOPLE.
Clark: CARNEGIE CERTAINLY WANTED TO GET RID OF THE UNION,
BUT HE THOUGHT THEY COULD DO IT WITHOUT
THIS CONFRONTATIONAL APPROACH THAT FRICK WAS ADVOCATING.
I SAY WE SIMPLY STARVE THEM OUT.
CLOSE THE PLANT.
AND WHEN THEY CAN BARELY FEED THEMSELVES,
THEY'LL COME BACK TO US, DESPERATE.
WE GET WHAT WE WANT, AND THEY KEEP THEIR JOBS.
THE PLANT WOULD BE CLOSED FOR MONTHS.
WE'D LOSE MILLIONS IN PROFIT.
INVESTORS WILL START PULLING OUT.
YOU KNOW WHERE I STAND.
LONG-TERM, HENRY.
THINK LONG-TERM.
Nelson: FRICK THOUGHT THIS WAS A TERRIBLE IDEA.
HE WANTED A DIRECT CONFRONTATION.
HE WANTED TO BRING IN REPLACEMENT WORKERS.
HE WANTED TO START THE WORKS WITHOUT THEM AT ALL.
Narrator: IN APRIL 1892,
CARNEGIE HEADS TO SCOTLAND FOR THE SUMMER,
RELYING ON FRICK TO END THE STANDOFF.
CARNEGIE DISTANCES HIMSELF FROM FRICK
TO LET FRICK TRY TO COME TO SOME SORT OF CONFRONTATION
WITH THE AMALGAMATED ASSOCIATION THAT WILL PERHAPS END THE UNION,
PERHAPS WEAKEN THE UNION.
Narrator: NOT WANTING TO SACRIFICE PRODUCTIVITY,
FRICK MOVES TO SQUEEZE OUT THE UNION ENTIRELY.
GET RID OF THEM.
ALL OF THEM.
YES, SIR.
FRICK THEN BROUGHT IN WHAT ARE KNOWN AS "SCABS" --
REPLACEMENT WORKERS -- WHO WOULD COME IN AND TAKE THE PLACE OF
THE WORKERS WHO WERE THROWN OUT.
Narrator: MEANWHILE, THE UNION STEELWORKERS
STAKE OUT THEIR GROUND.
YOU NEW IN TOWN?
YES, SIR. HERE FOR WORK.
[ CHUCKLES ] YOU HEAR THAT, BOYS?
HE'S HERE FOR WORK.
AND WHAT POSITION ARE YOU LOOKING FOR?
YOU KNOW, JUST NEED TO GET BY.
"JUST"? YEAH?
YOU JUST NEED TO GET BY? YEAH.
LET'S SEE IF WE CAN FIND THAT POSITION FOR HIM.
OKAY. ALL RIGHT.
ALL RIGHT.
OOH!
[ COUGHING ]
Clark: THEY WOULD CONFRONT ANY STRANGER THAT CAME INTO TOWN,
BASED ON THE RUMORS THAT FRICK WAS GOING TO BRING IN OUTSIDERS
TO OPERATE THE MILL.
[ HAWK SCREECHES ]
AS A FEW DAYS WENT BY, EVERYBODY IN HOMESTEAD WAS NERVOUS.
Narrator: TO PROTECT THE FACTORY,
FRICK HIRES THE INFAMOUS PINKERTON DETECTIVE AGENCY.
ALL RIGHT, GENTLEMEN, OUR ORDERS ARE TO PROTECT
ANY NON-UNION MEMBERS THAT CROSS THE LINE.
WE'RE NOT SURE EXACTLY WHAT OPPOSITION WE MAY FACE.
THE PINKERTONS THAT FRICK HIRED WERE A SMALL ARMY OF TOUGH MEN,
ARMED TO THE TEETH, WHO WERE BROUGHT TO SECURE THE MILL.
Narrator: AS THE PINKERTONS MOVE ON HOMESTEAD,
FRICK TELEGRAPHS CARNEGIE IN SCOTLAND,
UPDATING HIM ON EACH NEW DEVELOPMENT.
Pepperell: HE AND FRICK WERE IN VERY REGULAR COMMUNICATION.
AND CARNEGIE SAID, "I SUPPORT ENTIRELY WHAT YOU DO.
I'M 100% BEHIND YOU."
Narrator: CARNEGIE'S FINAL RESPONSE --
"NO DOUBT, YOU WILL GET HOMESTEAD RIGHT."
[ HAWK SCREECHES ]
[ MEN SHOUTING IN DISTANCE ]
FRICK'S SENDING IN THE PINKERTONS.
THESE GUYS ARE TROUBLE, BUT WE'LL BE READY FOR 'EM.
WE DON'T KNOW HOW MANY THEY'LL BE, BUT NO MATTER WHAT,
WE'RE GONNA FIGHT, AND WE'RE GONNA WIN.
ARE YOU READY?!
YEAH! YEAH!
LET'S GO!
Narrator: TO SECURE THE MILL AND PROTECT THE REPLACEMENT WORKERS,
THE PINKERTONS ARRIVE HEAVILY ARMED.
Clark: AS THE PINKERTONS CAME UP THE RIVER,
THE UNION HAD SPIES ALL UP AND DOWN.
THE WORD WENT OUT.
WE PUSH FORWARD UNTIL WE REACH THE FACTORY.
DO NOT RETREAT.
DO NOT STOP UNTIL WE'RE ON THE PROPERTY.
MOVE.
[ INDISTINCT SHOUTING ]
THIS IS OUR HOME! THIS IS OUR PLANT!
PUT IT DOWN!
DROP IT!
Man: GET OUT OF HERE!
[ INDISTINCT SHOUTING ]
Narrator: FRICK'S PLAN TO TAKE HOMESTEAD THROUGH FORCE BACKFIRES.
10 PEOPLE WERE KILLED...
[ HAWK SCREECHES ]
...SOME ON THE PINKERTONS' SIDE, SOME ON THE STEELWORKERS' SIDE.
Pepperell: IT WAS JUST AN APPALLING SITUATION.
GROUPS OF MEN ESSENTIALLY FROM THE SAME CLASS
WERE FIGHTING EACH OTHER,
AND MANY OF THEM REALLY DIDN'T KNOW WHY.
Narrator: FOR THE PRESS, IT'S A FEEDING FRENZY.
Man: EXTRA! EXTRA! READ ALL ABOUT IT!
AS SOON AS THE NEWS OF HOMESTEAD REACHES SCOTLAND,
CARNEGIE GOES INTO DAMAGE CONTROL.
MR. CARNEGIE, I NEED YOU TO COMMENT ON
WHAT HAPPENED AT HOMESTEAD.
YES, OF COURSE.
SIT DOWN.
IT WAS MY INTENTION TO CLOSE THE PLANT INDEFINITELY
UNTIL BOTH SIDES OF THE PARTY CAN COME TO AN AGREEMENT.
YOU ARE SUGGESTING MR. FRICK ACTED ALONE.
I AM SAYING I WAS CLEAR
IN HOW THE ARBITRATION SHOULD HAVE BEEN HANDLED,
AND THE PINKERTONS WERE NOT A PART OF THIS.
Pepperell: THE EVENTS AT HOMESTEAD WERE HUGELY PUBLICIZED.
AND CARNEGIE TRIED VERY PUBLICLY TO DISTANCE HIMSELF
FROM THOSE EVENTS, PASSING ALL RESPONSIBILITY ONTO FRICK
IN HIS MANAGERIAL CAPACITY AT THE PLANT.
MR. CARNEGIE, HOW MANY PEOPLE DIED AT HOMESTEAD?
ANY FURTHER QUESTIONS REGARDING HOMESTEAD
AND THE TRAGIC RIOT THAT HAPPENED THERE
SHOULD BE ASKED TO HENRY FRICK.
BUT CERTAINLY, PRIVATELY, CARNEGIE, DURING THE EVENTS,
HAD BEEN 100% SUPPORTIVE.
HE KNEW EXACTLY WHAT WAS GOING ON.
CARNEGIE THINKS HE CAN SIT ME OUT WITH THE DUCKS,
AS IF I ACTED ALONE ON THIS.
Narrator: FRICK IS BLIND-SIDED BY CARNEGIE'S ROLE REVERSAL.
THE STEELWORKERS ATTACKED MY MEN.
IMMEDIATELY AFTER HOMESTEAD, FRICK BECOMES ENRAGED
BY ANDREW CARNEGIE WITH HIS DOUBLE TALK,
TRYING TO BLAME EVERYTHING ON FRICK.
IF WE LET THIS GO ON MUCH LONGER,
IT'S GOING TO START AFFECTING OUR BOTTOM LINE.
THIS NEEDS TO END WITHIN THE MONTH.
CERTAINLY.
FRICK CERTAINLY PUT THE BLAME ON THE MILL WORKERS.
THESE UNIONS ARE GOING TO DESTROY MY COMPANY
IF I DON'T DESTROY THEM FIRST.
Narrator: FOR FRICK, CARNEGIE'S BETRAYAL
AND PUBLIC BACKLASH WILL SOON BE THE LEAST OF HIS WORRIES.
[ GUN COCKS ]
Narrator: THE CARNAGE AT HOMESTEAD NOW THREATENS THE FUTURE OF
AMERICA'S GREATEST STEEL ENTERPRISE.
AS IF I ACTED ALONE ON THIS.
FOR CARNEGIE, HOMESTEAD IS HIS BIGGEST MISTAKE.
LETTING FRICK WAR AGAINST THE WORKERS
WAS A TERRIBLE DISASTER.
Narrator: BUT THE BLOWBACK IS FAR FROM OVER.
Sanger: ALEXANDER BERKMAN WAS A VERY, VERY ANGRY ANARCHIST.
HE FELT THE PROLETARIAT HAD TO BE FREED.
[ GUN COCKS ]
AND HE DECIDED THAT THE WAY TO SOLVE IT
WAS TO KILL THE MANY-HEADED HYDRA HENRY CLAY FRICK.
FRICK! MURDERER!
[ GUNSHOT ]
Pepperell: BERKMAN HIT HIM IN THE NECK,
AND AS HE STEPPED FORWARD FOR THE KILL SHOT, THE GUN JAMMED.
AND HE STARTED TO STAB FRICK.
[ GRUNTS ]
AT THAT POINT, HE WAS MANHANDLED BY ONE OF FRICK'S ASSOCIATES.
[ HEART POUNDING ]
Narrator: FRICK SURVIVES THE ATTACK,
RESULTING IN A SURGE OF PUBLIC SYMPATHY AND SUPPORT.
BERKMAN'S ATTEMPTED ASSASSINATION
IS NOT DIRECTLY CONNECTED TO THE AMALGAMATED ASSOCIATION.
NO ONE AT THE AMALGAMATED ASSOCIATION
KNOWS WHO BERKMAN IS.
BUT THE TWO BECOME LINKED IN PEOPLE'S MINDS.
AND AMERICANS, BY AND LARGE, TURN AGAINST WORKERS,
AT LEAST IN THE FEW YEARS AFTER THE HOMESTEAD STRIKE.
Narrator: STEEL PRODUCTION COMES TO A HALT.
Nelson: THE PLANT SHUT DOWN FOR THREE MONTHS,
AND THE AMALGAMATED ASSOCIATION NO LONGER EXISTS
AT THE HOMESTEAD WORKS.
Narrator: $2 MILLION IN REVENUE
AND $1.5 MILLION IN WAGES ARE LOST.
WHEN THE PLANT REOPENS, THERE IS ONE CLEAR WINNER.
THE WORKERS COME BACK ENTIRELY UNDER FRICK'S CONTROL.
Clark: IT OPENED NON-UNION WITH SIGNIFICANTLY SLASHED WAGES.
SO ON MOST COUNTS, IF NOT ON ALL COUNTS,
CARNEGIE AND FRICK WON THE BATTLE OF HOMESTEAD.
Narrator: THE DAMAGE IS DONE.
FRICK AND CARNEGIE BOTH AGREE ONE OF THEM HAS TO GO.
IN 1899, HENRY CLAY FRICK AND OTHERS
TRY TO BUY OUT CARNEGIE, AND THAT FAILS.
CARNEGIE'S RESPONSE IS TO USE THE IRONCLAD AGREEMENT
AGAINST FRICK.
HE PERSUADES MOST OF THE OTHER MEMBERS
TO VOTE FRICK OUT OF THE FIRM.
FRICK GOES BANANAS.
HE RESPONDS BY THREATENING TO SUE.
Narrator: THIS PUBLIC SPAT CATCHES THE ATTENTION OF
BANKING TITAN J.P. MORGAN,
WHO MAKES AN OFFER THEY CAN'T REFUSE.
Nelson: FRICK WALKS AWAY WITH $61 MILLION
AT THE END OF THE CREATION OF U.S. STEEL.
CARNEGIE WITH OVER $400 MILLION.
Narrator: THE TWO MEN WHO JUST MADE EACH OTHER AN INCREDIBLE FORTUNE
SAY GOODBYE FOR THE LAST TIME.
FRICK WAS DONE WITH ANDREW CARNEGIE
ESSENTIALLY AFTER THE HOMESTEAD STEEL STRIKE.
THEY WENT THEIR SEPARATE WAYS AND NEVER SPOKE TO EACH OTHER
FOR THE FINAL 20 YEARS OF THEIR LIVES.
Narrator: FOR CARNEGIE, RETIREMENT BECOMES HIS REDEMPTION.
THE REST OF HIS LIFE, HE'S HAUNTED BY HOMESTEAD
AND WANTS TO DO EVERYTHING HE CAN
TO MAKE PEOPLE REMEMBER SOMETHING ELSE
FROM CARNEGIE'S NAME, BESIDES THE TERROR, THE DEATHS.
ANDREW CARNEGIE, IN HIS FINAL YEARS,
STARTED BASICALLY WHAT'S KNOWN AS PROFESSIONAL PHILANTHROPY
AND ACTUALLY GAVE ALL OF HIS MONEY AWAY,
BUT ALWAYS WITH HIS NAME ATTACHED.
Narrator: FRICK, NOT TO BE OUTDONE BY CARNEGIE, FOLLOWS SUIT.
FRICK GAVE 5/6 OF HIS FORTUNE TO NONPROFITS, HOSPITALS, PARKS,
THINGS OF THAT NATURE.
Narrator: BUT FRICK STANDS BY HIS ACTIONS.
Nelson: CARNEGIE WAS HAUNTED BY HOMESTEAD.
FOR FRICK, IT WAS JUST ANOTHER DAY.
PEOPLE DIED, AND HE WON.
Narrator: FOR DECADES TO COME,
THE STEEL UNION REMAINS IN TATTERS.
Nelson: THE AMALGAMATED ASSOCIATION IS EFFECTIVELY A DEAD LETTER.
THERE ARE STILL AMALGAMATED ASSOCIATION WORKERS,
BUT THEY HIDE THEIR CARDS.
AND IT GOES BACK TO BEING A SECRET UNION.
AND IT'S REALLY ONLY 10 OR 15 YEARS LATER
THAT THE MEMORIES OF THE HOMESTEAD STRIKE
START TO LEAD TO A GROWING SENSE THAT THESE WERE THE MARTYRS.
Narrator: WHILE THEIR INNOVATIONS COME AT A STEEP PRICE,
ANDREW CARNEGIE AND HENRY CLAY FRICK'S LEGACY
REMAINS UNDENIABLE.
Nelson: THEIR POWER, THEIR INFLUENCE, MAKE THE U.S.
UNIQUELY POSITIONED TO BECOME AN INTERNATIONAL POWER.
Pepperell: THEY WERE A PERFECT FIT.
THE COKE BARON AND THE STEEL BARON COMBINE
ALL OF THESE VARIOUS INDUSTRIES UNDER ONE ROOF
TO BECOME THE BIGGEST PRODUCER OF STEEL THE WORLD HAD KNOWN.
Narrator: BY THE END OF THEIR CAREERS,
CARNEGIE AND FRICK'S COMBINED WORTH EXCEEDS $350 BILLION
IN TODAY'S MONEY.
BUT THEIR CONTRIBUTIONS TO THE WORLD ARE IMMEASURABLE.
ANDREW CARNEGIE AND HENRY CLAY FRICK
DIE WITHIN FOUR MONTHS OF EACH OTHER IN 1919.