of the failure of the investment bank of Jay Cooke & Company, which precipitated the Panic of 1873. The Panic created financial difficulties for the company, and it floated bonds to stay alive. J. Edgar Thomson, president of the Pennsylvania Railroad and a mentor and close friend to many of the partners, bought many of these bonds in late 1873, helping keep the firm afloat. The partners dissolved Carnegie, McCandless & Co. to take advantage of a new Pennsylvania law permitting the formation of limited liability companies, and the Edgar Thomson Steel Company Ltd. was created on October 12, 1874. The company took its name from J. Edgar Thomson, who although not a large investor in the works had a superb reputation as an honest and trustworthy person (an important asset in risky financial times). Over the next several years, Thomas Carnegie generally oversaw the Edgar Thomson Steel Company. His success in this endeavor was summed up by a corporate historian this way: Mr. T.M. Carnegie's abilities were too numerous and complex to be summed up in a sentence. He was a man of sterling integrity; and it was a common saying in Pittsburg that his word was better than some men's bond. He had remarkable judgment; and his opinion on commercial questions was valued above that of much older and more experienced men. Quick and keen in his perceptions, cautious but progressive in his ideas, faithful to his engagements, and just in all his dealings, he gave to his company that which corporations are habitually lacking, namely, a conscience. Other historical assessments conclude Thomas had a solid grasp of the steel business and was a respected manager, even if Andrew considered him overly cautious. William Abbott, chairman of Carnegie, Phipps, & Co., considered Thomas the better businessman than Andrew, "solid, shrewd, farseeing, absolutely honest and dependable." Thomas lacked Andrew's ambition, but "was content with a good, prosperous, safe business and cared nothing for expansion. He disapproved of Andrew's skyrocketing tendencies, regarded him as a plunger and a dangerous leader. Tom wanted earnings in the shape of dividends, whereas Andrew insisted on using them for expansion." Although he shied away from publicity, he was a hard worker and well liked by both management and workers. His one flaw was his drinking: He often left work at noon and drank heavily for the rest of the day. Crony capitalism was an