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How to Make a Fortune., Ashburton Guardian, Volume VII, Issue 2501, 26 August 1890
How to Make a Fortune.
HINTS BY MR ANDREW CARNEGIE.
Mr Carnegie having already, m his articles on the ' Gospel of Wealth,' told us what to do with fortunes when ws have got them, now turns to tell us how to get them. His hints on this subject are published m the "New York Tribune," Tom which we take the following extracts :— THE CAPTAINS OF INDUSTRY RISE FROM ] THE RANKS. As an initial encouragement, Mr Carnegie reminds us that the present captains of industry all rose from the ranks. He enumerates the best known industrial establishments m the States, and says :— "Every one of these great works was founded aud managed by mechanics —men who served their apprenticeship. The list could be greatly extended, and if we were to include those which were created by men who entered life as office-boys or clerks, we should embrace almost every famous manufacturing concern m the country. Edison, for instance, was a telegraph operator; Corliss, of Corliss engine ; Cheney, of Cheney silk ; RoeMing, of wire fame ; Spreckles, m sugar refining—all and many more captains of industry were poor boys with natural aptitude, to whom a regular apprenticeship was scarcely necessary. In banking and finance it is an oft repeated story that our Stanfords, Rockefellers, Goulds, Sages, Fields, Dillons, Seligmans, Wilsons, and Huntingtons came from the ranks. The millionaires who are m active control started as poor boys, and were trained m that sternest but most efficient of all schools—poverty." HOW TO FAIL lit BUSINJCSS —TOI CO TO COLLEGE. Mr Carnegie is full of encouragement for those who can manage to start as office boys ; but for those' of us who have been consigned to schools and colleges he is less hopeful. " I asked » city banker to give me a few names of presidents and vice-presidents and cashiers of our great New York city batiks who had begun as boys or clerks. The total absence of the college graduate m every department of affairs should be deeply weighed. I have inquired and searched everywhere, m all quarters, but find scarcely a trace of him. Nor is this surprising. The prize-takers have too many years the start of the graduate ; they have entered for the race invariably m their teens—m the most valuable of all the years for learning anything—from fourteen to twenty ; while the college student has been learning a little about the barbarous and petty squabbles of a far-distant past, or trying to master languages which are dead—such knowledge as seems adapted for life upon another planet than this, as far as business affairs are concerned—the future captain of industry is hotly engaged m the school of experience, obtaining the very knowledge required for his future triumphs. Ido not speak of the effect of college education upon young men training for the learned professions, but the almost total absence of the graduate from high position m the business world seems to justify the conclusion that college education as it exists is fatal to success m that domain. The graduate has not the slightest chance, entering at twenty, against the boy who swept the office, or who begins as shipping clerk at fourteen." SAVE IN OKDBR TO PROFIT-SHAKE. That, however, is only one way of "getting on." If you have ability you may be taken into partnership ; but .so you may also if you have savings. "It should be the effort of every corporation to induce its principal workers to invest their savings m its shares. Only m this way can corporations hope to cope successfully with individual manufacturers who have already discovered one of the valuable secrets of unusual .success —viz., to share their profits with those who arc most instrumental m producing them. The day of the absent capitalist stockholder, who takes no interest m the operation of the works beyond the receipt of his dividend, is certainly passing away. The enormous concern of the future is to divide its profits not among hundreds of idle capitalists who contribute nothing to its success, but among hundreds of ita ablest employe's, upon whose abilities and exertions success greatly depends. The capitalist absent stockholder is to be replaced by the able and present worker." THE VIRTUE OF SELF-ADVERTISEMENT. Proceeding to discuss the qualities necessary for such success as he has been describing, Mr Carnegie dwells first on a virtue m which the present age is certainly not deficient, the virtue of self-advertise-ment. "The condition precedent for promotion is that the man must first attract notice. He must do something unusual, and especially must this be beyond the strict boundary of his own duties. He must suggest, or save, or perform some services for his employer which he could not be- censured for iiot having done. Self-interest compels the immediate superior to give the highest place under him to the man who can best fill it, for the officer is credited with the work of his department as a whole. The man who has made an improvement I should always have an eye upon obtaining an interest m the business rather than an increase of salary. Even if the business up to this time has not been very prosperous, if he has the proper stuff m him, he believes that he could make it so, and so he could." THE THREE UNPARDONABLE SINS. From virtue, Mr Carnegie passes to rice. There are three unpardonable sins m his gospel-—drinking, speculation, and lending. '' There are three great rocks ahead of the practical young man who has his foot upon the ladder, and is beginning, to rise. There is no use m wasting time upon any young man who drinks liquor, no matter how exceptional his talents. The rule should be : never enter a bar room, and never drink liquor except ;it meals. The second rock ahead is speculation. The business of a speculator and. that of a manufacturer or man of affairs are not only distinct but incompatible. I have never known a speculative manufacturer or business man who scored a permanent success. The third rock is akin to speculation—endorsing. Business men require irregular supplies of money ; at some periods little, at others enormous sums. Others being m the same condition, there is strong temptation to endorse mutually. This rock should be avoided. There are emergencies, no doubt, m which men should help their friends, but there is a rule which will keep one safe ; no man should place his name upon the obligation of another if he has not sufficient to pay it without detriment to his own business. It is a safe jule to give the cash direct that you have to spare for others, and never yoiir en* dorsement cir guarantee," **PUT ALL YOUR EC,GS IN ONE BASKET." Mr Carnegie next urges upon the aspirant to fortune the necessity for concentration. '' One great cause of failure of young men m business is lack of concentration. They are prone to seek outside investment. The cause of many a surprising failure lies mso doing, Every dollar of capital and credft, every business fchqugtyt. should be concentrated upon the one business upon which a man has embarked. He should never scatter his shot. It is a poor business which will not yield better returns for increased capital than any outside investment. No man or spt of men or corporation can manage a business man's capital as well as he manage it himself. The rule 'Do not put all your eggs m one basket' does not apply to a man's life work. Put all your eggs m one basket, and then watch that basket, is the true doctrine—the most valuable rule of all." . >
How to Make a Fortune., Ashburton Guardian, Volume VII, Issue 2501, 26 August 1890
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