What arrangement do Carnegie and Rockefeller establish regarding steel production?

• A. Rockefeller builds a steel mill for Carnegie
• B. Carnegie buys an iron ore mine from Rockefeller
• C. They merge their companies
• D. Carnegie invests in Rockefeller's oil business

Answer: (B)

The correct answer is that Carnegie buys an iron ore mine from Rockefeller. This is significant in the context of their business dealings, as it highlights the relationship between the two industrialists. Andrew Carnegie sought to control every aspect of steel production, from raw materials to the finished product. By acquiring an iron ore mine, he ensured a steady supply of high-quality iron, which was crucial for steel manufacturing.

This transaction illustrates the competitive nature of the time and the way these titans of industry navigated their respective markets. Carnegie's strategy of backward integration allowed him to reduce costs and increase efficiency in his steel production, which ultimately contributed to his dominance in the steel industry. While the other options suggest various forms of partnerships or transactions, such arrangements did not occur in the same manner as the purchase of the mine, making the acquisition an essential step in Carnegie's growth and success.