Commonwealth Steel Company
| Company type | Private |
|---|---|
| Industry | Steel manufacturing, Railroad equipment |
| Founded | 1901 |
| Founder | Clarence H. Howard, H. M. Pflager, G. K. Hoblitzelle |
| Fate | Merged into General Steel Castings Corporation in 1929 |
| Headquarters | Granite City, Illinois , United States |
Area served | United States |
Key people | Clarence H. Howard (President) |
| Products | Steel castings, railroad locomotive and passenger car components |
Number of employees | 1,500 |
The Commonwealth Steel Company was a U.S.-based steel manufacturer located in Granite City, Illinois, established in 1901 by business figures connected with the American Steel Foundry. The firm operated a facility dedicated to producing steel castings and railroad equipment, employing approximately 1,500 people.
Commonwealth emerged as a prominent supplier within the railroad sector, with its pioneering steel castings widely adopted. By 1928, Commonwealth components were integrated into nearly every locomotive and passenger car constructed in the United States. This dominant position prompted locomotive producers Baldwin Locomotive Company and American Locomotive Company to create General Steel Castings Corporation in 1928, incorporating Commonwealth as its Commonwealth Steel Division.
Early history
Clarence H. Howard, who controlled the Double Body Bolster Company, obtained contracts for large cast-steel bolsters intended for the 1904 St. Louis World's Fair but lacked the manufacturing capacity to fulfill them. These bolsters were notable for their unprecedented dimensions. To meet production needs, Howard collaborated with Commonwealth Steel and subsequently, along with associates H. M. Pflager and G. K. Hoblitzelle, assumed control of Commonwealth in 1904. Howard served as company president for 23 years until retiring in 1931, shortly after Commonwealth merged with General Steel Castings Corporation and shortly before his passing that same year.
Company promotion of citizenship
The firm actively supported Americanization initiatives aimed at immigrant workers residing at Lincoln Place, providing complimentary English language courses and endorsing Prohibition. An article featured in the December 1915 edition of The Commonwealther emphasized the company's opposition to saloons. Additionally, it fostered camaraderie and adherence to the Golden Rule through the activities of the Fellowship Club.
In 1906, Commonwealth founded the Commonwealth School to educate its "Commonwealthers," allowing apprentices up to four hours per week during paid work hours to study subjects such as mathematics, mechanical drawing, and blueprint interpretation. By December 1923, this educational program had expanded to include a high school curriculum developed in partnership with Community High School and local officials, offering diplomas recognized on par with traditional graduates.
By 1927, close to 200 employees participated in various educational offerings including Apprentice School, Night School Drawing classes, Eighth Grade School, High School courses, University Extension classes, Special Engineering instruction, Trade Knowledge sessions, Scholarships, and School Dinners.
Workers also engaged in profit-sharing through the Commonwealth Plan, which emphasized fellowship as embodying "the Golden Rule in action," promoting mutual respect and equal opportunities. Company meetings frequently commenced with the Lord's Prayer and patriotic songs, reflecting core values centered on brotherhood and nurturing employee talents.
Innovation and growth
Commonwealth established itself as an industry leader through innovation. In 1908, it produced the first one-piece rectangular tender frame and developed specialized machining processes capable of handling castings up to long. During World War I, the company supplied cast steel frames for artillery tractors as well as locomotive components. By 1913, payroll expenses surpassed $110,000 per pay period (equivalent to $3.25 million in 2022 dollars), indicating substantial business expansion.
To accommodate increasing demand, the manufacturing plant expanded from to in 1915 and eventually grew to approximately by 1924, housing nearly under cover. In that year, Commonwealth designed and built a one-piece underframe for steam locomotives delivered to New York Central Railroad. The company invested $1.5 million (around $25.7 million in 2022 dollars) into enlarging its foundry facility to 1,475 feet—likely making it the world's largest open hearth steel foundry—enhancing production capacity by 35% and enabling fabrication of some of the largest steel castings globally.
In 1926, headquarters moved from St. Louis to Granite City following completion of a new General Office Building at 1417 State Street. By 1927, total facility size expanded to , with plant operations covering roughly and a foundry extending over one-third of a mile.
That same year, Commonwealth manufactured a one-piece locomotive bed incorporating integral cylinders and steam chests for the Terminal Railroad Association of St. Louis while also developing cast steel underframes and trucks for electric locomotives. By 1928, its products featured in almost every locomotive and passenger car built across the U.S., underscoring its significant market presence and competitive edge within the railroad industry.
Merger
A report from the St. Louis Post-Dispatch in April 1929 underscored the distinctive business approach of Commonwealth Steel, focusing on its one-piece castings that established the company as a global frontrunner in manufacturing railroad locomotive and coach frames. This advancement played a crucial role in improving railroad safety and set the firm apart within the sector.
Acknowledging Commonwealth Steel's strategic importance, leading locomotive producers—the American Locomotive Company and Baldwin Locomotive Company—together with American Steel Foundries, founded the General Steel Castings Corporation in 1928. Clarence Howard, who served as Commonwealth Steel’s president, revealed intentions to merge with General Steel Castings.
Valued at $10 million in capitalization, Commonwealth Steel was purchased by General Steel Castings Corporation for close to $35 million. The consolidation was finalized on July 30, 1929, resulting in Commonwealth Steel becoming the "Commonwealth Division" within General Steel Castings. At the same time, General Steel established its "Eddystone Division," a newly constructed foundry located near Baldwin Locomotive’s plant in Eddystone, Pennsylvania, thereby expanding its manufacturing capacity and strengthening its market position.