The crisp air of October 1900 hinted at the approaching winter as John Kingston reviewed a stack of financial documents in his New York office. The profits from their Texas oil ventures were exceeding all expectations, making further diversification a logical next step. His gaze kept returning to a particular industry: steel. With their iron mines in full production, owning a steel mill to directly utilize that raw material held immense appeal.
The Kingstons had already dipped their toes into steel manufacturing, having acquired two small mills in Pittsburgh the previous year, followed by one in Chicago and another in New York City. These weren't major operations, and their profitability was modest, but they were foundational pieces in John's long-term vision of establishing a significant steel company. Now, the opportunity to consolidate these smaller ventures with a larger acquisition was on the horizon.
Gathered around the large mahogany table were George, Mary, and Elizabeth, each poring over the financial statements and operational details of various steel mills for sale. Michael sat quietly beside Mary, his gaze occasionally scanning the documents, though his attention seemed elsewhere.
Suddenly, Michael pointed to a document. "What about this one? Ironton Structural Steel Company in Duluth, Minnesota."
John, George, and the others exchanged curious glances. They hadn't paid much attention to that particular listing, focusing on larger, more established mills in Pennsylvania and Ohio. However, knowing Michael's… uncanny knack for identifying promising opportunities, John made a note. "Ironton Structural Steel… Duluth. We'll look into it."
A few weeks later, John, George, and Michael found themselves on a train heading north to Duluth. They wanted to see firsthand what made this Ironton Structural Steel Company so compelling. Upon arriving, they toured the facility, met the owners, and studied the operations. It appeared to be a fairly standard mill, nothing particularly noteworthy that seemed to warrant Michael's keen interest.
"Are you sure about this one, Michael?" George asked quietly as they walked through the somewhat dated production floor.
Michael frowned, his brow furrowed in thought. "I think… I'd like to meet with the research team, if they have one."
The owners, a pair of brothers, seemed slightly surprised. "Research team? Yes, we have a superintendent who tinkers with some ideas in his spare time, but there's nothing particularly interesting going on there." But John's polite insistence led them to a meeting with the mill's superintendent, a man named Henry Grey.
As Henry Grey entered the small, cluttered office, a subtle shift occurred in Michael. His usual quiet demeanor became more focused, his eyes fixed intently on the superintendent. After introductions were made, Michael, much to the owners' surprise, asked directly, "Mr. Grey, what are you currently working on?" The owners attempted to interject, wanting to steer the conversation towards more conventional topics, but Michael's insistent gaze held them back.
Henry Grey, a man with intelligent eyes and ink-stained fingers, hesitated for a moment, then explained with a growing enthusiasm, "Well, young man, I've been developing a new rolling mill process for some time now. In fact, I finalized it back in 1897. It's designed to produce a different kind of steel beam – one that's much stronger and more efficient. We're calling them wide-flange beams."
Michael leaned forward, his interest piqued. "Mr. Grey, what is the difference between these wide-flange beams and the kind of I-beams that are currently being used?"
"Well, young man, the traditional I-beams we've been using are shaped, as the name suggests, like the letter 'I'. They have a central vertical part called the web, and two horizontal parts at the top and bottom called flanges. Now, these flanges are typically tapered, meaning they get thinner as they move away from the web. This design works well for certain loads and spans, but it has limitations, especially when you're trying to build taller or wider structures that need to carry significant weight."
He then pointed to his sketch of the wide-flange beam. "What I've developed here is a beam that also has an 'I' shape, but with key differences in the flanges. Notice how they are much wider, almost resembling the letter 'H' if you look at the cross-section. These wider flanges provide a much greater surface area, allowing the load to be distributed more evenly across the beam. Furthermore, the web in my design is often thicker as well. This combination means the wide-flange beam can support significantly more weight and can span much greater distances without compromising strength. It's a more efficient use of steel, allowing us to build stronger and potentially lighter structures overall, even those reaching impressive heights."
George leaned forward, intrigued. "And this new milling process you mentioned, Mr. Grey? How does it allow you to produce these beams?"
Henry's eyes lit up further with enthusiasm. "Ah, that's the key innovation, Mr. Kingston! The traditional method of creating such strong beams often involves welding multiple pieces of steel together. My new rolling mill is designed to shape the entire beam – the web and the wide flanges – from a single piece of heated steel. This creates a much stronger and more structurally sound beam, eliminating the potential weak points that can occur with welding."
Michael looked at John and George, a small, decisive nod passing between them. John turned to Henry. "Why aren't these being produced, Mr. Grey?"
Henry sighed. "They haven't been fully tested yet. And truthfully, some of the local architects I've spoken with are… skeptical. They've voiced concerns that any tall buildings constructed with these beams would be top-heavy and prone to toppling over in strong winds." The owners shifted uncomfortably nearby, clearly sharing this skepticism.
The owners, whose names were Samuel and Thomas Abernathy, watched with growing apprehension, assuming the Kingstons would now surely lose interest in investing. After their meeting with Henry Grey, John requested a private conversation with the Abernathy brothers.
Before delving into their current operations, John had discreetly gathered some information about the Ironton Structural Steel Company in Duluth. Founded in the early 1890s, the company had benefited from the burgeoning iron mining industry in the region, producing standard steel rails and structural components primarily for local construction and railway expansion. While it was a steady business, it hadn't achieved significant scale or innovation, largely content with established production methods.
Turning to Samuel and Thomas, John said, his tone direct, "Gentlemen, we are very interested in acquiring your entire company." The Abernathy brothers, who had assumed the Kingstons were considering a potential investment or partnership, were momentarily speechless.
"You… you want to buy the whole mill, Mr. Kingston?" Samuel stammered, exchanging a bewildered look with his brother.
John nodded firmly. "We are prepared to offer you three and a half million dollars for the entire operation."
Samuel Abernathy shook his head. "Gentlemen, with all due respect, we were hoping for something closer to five million." Thomas murmured his agreement beside him.
The ensuing negotiations took time. The Kingstons, while recognizing the potential of Henry Grey's invention, were also mindful of the current state of the mill and its existing profitability. The Abernathy brothers, on the other hand, were understandably looking to maximize their return on years of hard work. The talks stretched over several days, requiring John, George, and Michael to extend their stay in Duluth. Finally, after much deliberation, they reached an agreement: the Kingstons would purchase Ironton Structural Steel Company for four million two hundred thousand dollars, which included the ongoing operation and its existing inventory and with the Abernathy brothers, Samuel and Thomas, remaining in charge of the day-to-day operations for a set period to ensure a smooth transition.
The moment the deal was finalized, and the legal documents were being drawn up, John and George approached Henry Grey. "Mr. Grey," John said, a genuine smile on his face, "we'd like to offer you an opportunity. We'd like you to come back to New York with us."
Henry looked surprised. "New York, Mr.Kingston?"
"Yes," George chimed in. "We believe in your vision for these wide-flange beams, and we want to help you make them a reality. We'll provide you with the resources and support you need to fully test your designs and bring them into production."
A look of profound hope spread across Henry Grey's face. He nodded eagerly. "Gentlemen, I would be honored."
With Henry Grey accompanying them, the Kingstons returned to New York. True to their word, they placed Henry Grey in charge of their existing steel mill in New York City. John and George, with Michael's quiet support, instructed Henry to begin constructing the necessary equipment and processes to bring his vision of producing wide-flange beams to life. The future of steel construction was about to change, and the Kingstons were positioning themselves at the forefront of this innovation.