Bethlehem Steel

The Bethlehem Steel Corporation was an American steelmaking company headquartered in Bethlehem, Pennsylvania. Until it closed in 2003, it was one of the world's largest steel-producing and shipbuilding companies. At its peak, Bethlehem Steel was a symbol of American manufacturing leadership and its later decline is often seen as a sign of America's reduced manufacturing role in the world.

Bethlehem Steel's steel was used in building many famous structures, including the Empire State Building, Madison Square Garden, Rockefeller Center, and the Golden Gate Bridge. The company also played a key role in making warships for the United States during World War I and World War II, helping Allied forces win against Nazi Germany and the Axis powers.

The company started in 1857 as an iron-making business and grew into Bethlehem Steel Corporation in 1904. Despite surviving early challenges in the 1970s, Bethlehem Steel faced tough competition and high costs, leading to its bankruptcy in 2001 and dissolution in 2003 when its assets were sold to International Steel Group.

History

19th century

In 1857, the first iron works in Bethlehem, Pennsylvania, was launched as the Saucona Iron Company by Augustus Wolle. That same year, a national financial crisis stopped the company from growing. The company moved to South Bethlehem and changed its name to the Bethlehem Rolling Mill and Iron Company. On June 14, 1860, the board of directors elected Alfred Hunt president.

On May 1, 1861, the company’s name changed to the Bethlehem Iron Company. Construction of the first blast furnace began on July 1, 1861, and it was ready to use on January 4, 1863. The first rolling mill was built between spring 1861 and summer 1863, and the first railroad rails were rolled on September 26, 1863. The company made rails for growing railroads and armor plating for the U.S. Navy.

A February 1880 illustration of the eleven acres of land issued to Bethlehem Steel by present-day three local jurisdictions, Lower Saucon Township, South Bethlehem, and Northampton County

The company did well in the early 1880s but faced competition from firms in Pittsburgh and Scranton, like the Carnegie Steel Company and Lackawanna Steel. The U.S. Navy’s decision to rebuild with steel-hulled warships changed Bethlehem Iron Company’s future.

After the American Civil War, the U.S. Navy became smaller, and the country focused on settling the West and rebuilding the South. By 1881, the poor condition of the U.S. fleet showed the need to rebuild it.

In 1883, U.S. secretary of the Navy William E. Chandler and U.S. secretary of war Robert Todd Lincoln sent Lt. William Jaques to study European armament makers. Jaques formed ties with the firm of Joseph Whitworth in Manchester, England. He returned to the U.S. to work with Bethlehem Iron Company, proposing to help it build a heavy forging plant.

In 1885, John F. Fritz, known as the father of the U.S. steel industry, met with Bethlehem Iron directors to discuss the proposal. In early 1886, Bethlehem Iron and the Whitworth Company made a contract.

Bethlehem Steel Works, an 1881 watercolor by Joseph Pennell

In spring 1886, Congress passed a bill to build armored ships, and Bethlehem won contracts to make forging and armor. Between 1888 and 1892, Bethlehem Iron Company built the first U.S. heavy-forging plant.

For the 1893 Chicago World’s Fair, Bethlehem Iron Company provided steel for the world’s first Ferris wheel. In 1898, Frederick Winslow Taylor joined to help solve problems in the machine shop. The company changed its name to Bethlehem Steel Company.

Bethlehem Steel Company

In 1899, Bethlehem Steel Company was established, taking over the liabilities of the Bethlehem Iron Company. The two companies operated separately under the same ownership until they merged later.

The Bethlehem Steel plant in Bethlehem, Pennsylvania, photographed by William H. Rau in 1896

20th century

In 1901, Charles M. Schwab bought Bethlehem Steel Company. He later sold it to U.S. Steel Corporation, then repurchased it and sold it to United States Shipbuilding Company. In 1904, it became Bethlehem Steel Corporation.

After its formation, Bethlehem Steel bought Bethlehem Steel Company. Bethlehem Steel became the nation’s second-largest steel provider. In 1908, it began making wide-flange structural shapes, helping start the age of the skyscraper.

In the early 1900s, the company expanded beyond steel, managing iron mines in Cuba and shipyards in the U.S. In 1913, it bought Fore River Shipbuilding Company in Quincy, Massachusetts. During World War I and World War II, Bethlehem Steel was a major supplier to the U.S. armed forces.

A preferred share of Bethlehem Steel Corporation stock, issued July 6, 1911

In the 1930s, the company built parts of the Golden Gate Bridge and a large oil refinery in La Plata, Argentina. During World War II, it made airplane parts, armor plate, and big cannon forgings.

In the late 1950s and early 1960s, Bethlehem Steel reached its peak, making 23 million tons of steel a year. By the 1970s, foreign steel became cheaper, and Bethlehem Steel faced tough competition. Flooding closed the Cornwall iron mine in 1973, and the Grace Mine shut down in 1977.

In 1982, Bethlehem Steel lost $1.5 billion and shut down many operations. It returned to profit in 1988 but continued to restructure. In the mid-1980s, demand for its steel products fell, and new competition arrived. By 1995, it stopped making steel at its main plant in Bethlehem.

21st century operations, bankruptcy, and liquidation

In 2001, Bethlehem Steel filed for bankruptcy. In 2003, it was dissolved and liquidated. Its remaining assets were bought by the International Steel Group, which later became part of ArcelorMittal.

The company tried to help the Bethlehem area by planning to reuse its old site for cultural, recreational, educational, entertainment, and retail development. The site became Bethlehem Works. The National Museum of Industrial History and a casino were built there.

In 2007, the Bethlehem Steel property was sold to Sands BethWorks to build a casino. Construction started in fall 2007 and finished in 2009. The old plant’s blast furnaces still stand as part of SteelStacks, an arts and entertainment area with music venues and a casino.

Shipyards

Main article: Bethlehem Shipbuilding Corporation

Bethlehem Shipbuilding Corporation started in 1905 when Bethlehem Steel bought a shipyard in San Francisco called Union Iron Works. In 1917, the company became officially known as 'Bethlehem Shipbuilding Corporation, Limited.

Electric multiple units

In 1931 and 1932, Bethlehem Steel made 38 electric train carriages for the Reading Company in Philadelphia. At that time, the Reading Company was one of the biggest and most successful railroads in the United States.

Freight cars

From 1923 to 1991, Bethlehem Steel was a top maker of railroad freight cars. This started after they bought Midvale Steel, which had a railcar division in Johnstown, Pennsylvania. Bethlehem Steel’s Freight Car Division was the first to use aluminum in making these cars. In 1991, the Johnstown plant was sold to its managers, forming Johnstown America Industries.

Influence on American landmarks

Bethlehem Steel made the steel for many famous places in the United States, including:

Bridges

Buildings

Bethlehem Steel manufactured the steel used in the 1927 construction of George Washington Bridge, the world's busiest motor vehicle bridge, which connects Manhattan and New York City with New Jersey.

Alcatraz Island
Empire State Building
Madison Square Garden
Merchandise Mart
One Chase Manhattan Plaza's 53,000-ton steel frame
Rockefeller Center
Waldorf Astoria hotel
The John F. Kennedy Center for the Performing Arts

Dams

Railways

San Francisco Municipal Railway

Bethlehem Steel also made the largest electric generator shaft in the world for General Electric in the 1950s, and the steel for the Wonder Wheel in Coney Island.

In popular culture

Music

In 2012, a three-piece indie rock band named itself "Bethlehem Steel" to honor the company's history. That same year, singer Nanci Griffith released a song called "Bethlehem Steel" on her album Intersection, remembering the company's closing. In 1982, Billy Joel wrote a song titled "Allentown" about the lives of steelworkers in Allentown and Bethlehem, Pennsylvania. The song talks about how many people lost their jobs when factories closed. In 1996, the band Grant Lee Buffalo also wrote a song named "Bethlehem Steel" for their album Copperopolis (album), mentioning the company in the lyrics.

Sports

Bethlehem Steel F.C. (1907–1930), supported by the Bethlehem Steel company, was one of the best early American soccer teams. Today, Philadelphia Union II is a professional soccer team linked to the Philadelphia Union in Major League Soccer. It was once called Bethlehem Steel FC to honor the original team. In February 2013, the Philadelphia Union showed a special uniform that remembers Bethlehem Steel F.C. The uniform is mostly black with white edges and includes a small Bethlehem Steel FC logo.