Internal development of a limited partnership firm like Carnegie Steel, which ruthlessly drove down costs and seized on new technologies, gave way to U.S. Steel, which expanded horizontally, growing by acquisitions rather than through technological innovation. Morgan did not just help to assemble the capital necessary to bring them about; he also took a direct role in the governance of the new corporations and holding companies, seeking to ensure competent management and to forestall the ruthless competition of the 1890s, which Morgan had always thought wasteful and inefficient.
