Bethlehem Steel

The Bethlehem Steel Corporation was an American steelmaking company based in Bethlehem, Pennsylvania. It was one of the largest steel and shipbuilding companies in the world until it closed in 2003.

Bethlehem Steel made steel for many famous buildings, such as the Empire State Building, Madison Square Garden, Rockefeller Center, and the Golden Gate Bridge. The company also helped build warships for the United States during World War I and World War II. These ships were important for the Allied forces fighting against Nazi Germany and the Axis powers.

The company began in 1857 as an iron-making business and became Bethlehem Steel Corporation in 1904. It faced strong competition and high costs, which led to its bankruptcy in 2001. The company was dissolved in 2003, and its assets were sold to International Steel Group.

History

19th century

In 1857, the first iron works in Bethlehem, Pennsylvania, started as the Saucona Iron Company by Augustus Wolle. That same year, money problems 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 chose Alfred Hunt to be president.

On May 1, 1861, the company’s name changed to the Bethlehem Iron Company. Building the first blast furnace began on July 1, 1861, and it was ready on January 4, 1863. The first rolling mill was built between spring 1861 and summer 1863, and the first railroad rails were made on September 26, 1863. The company made rails for 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 decided to rebuild with steel ships, which 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 U.S. fleet needed to be rebuilt.

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 worked with the firm of Joseph Whitworth in Manchester, England. He returned to the U.S. to work with Bethlehem Iron Company, offering to help 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 talk about the offer. In early 1886, Bethlehem Iron and the Whitworth Company made a deal.

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 created, taking over the Bethlehem Iron Company. The two companies worked 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 bought it back and sold it to United States Shipbuilding Company. In 1904, it became Bethlehem Steel Corporation.

After it was formed, 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 began in 1905 when Bethlehem Steel purchased a shipyard in San Francisco named Union Iron Works. By 1917, the company was officially called 'Bethlehem Shipbuilding Corporation, Limited.'

Electric multiple units

In 1931 and 1932, Bethlehem Steel made 38 electric train carriages for the Reading Company in Philadelphia. The Reading Company was a big and successful railroad in the United States at that time.

Freight cars

From 1923 to 1991, Bethlehem Steel made many railroad freight cars. They started this after buying Midvale Steel, which had a railcar division in Johnstown, Pennsylvania. Bethlehem Steel’s Freight Car Division was the first to use aluminum to make 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.

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 when the company closed. 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.