In late 1887, Carpenter went to Europe to study steel
foundries and the metallurgy of steel. During this time he developed the improved processes that he would later patent. Rob Engle describes Carpenter's approach as an employer in an essay for the
Historical Society of Berks County: James Carpenter, founder of Carpenter Steel, believed strongly in the safety and welfare of his employees. Photographs of the era depict employees receiving medical care at company sponsored health clinics, clean dormitory rooms provided to workers, employees engaged in spirited games of baseball on a Carpenter Steel-maintained field at lunch time, and happy workers participating in a local parade. Far from being entirely company propaganda, Carpenter Steel's approach to employee relations is supported by the fact that five drives to unionize workers over the years all resulted in a rejection of union affiliation in favor of remaining a non-union shop. The company's policy was to "stay one step ahead of the union benefits and offer Carpenter employees all the advantages of union membership without joining. Carpenter bought property and built an
Italianate house at 606, North Fifth Street, Reading, which he called Swanona (not
Swannanoa). The house is slightly over a mile south of the Carpenter foundry, and Carpenter often walked to work. He became involved in community affairs as a member of the
Grand Army of the Republic and later became a Vice Commander of the
Military Order of the Loyal Legion of the United States, also known as the Union Veteran Legion, in Reading. These organizations gained him business contacts and led him to learn that specialty steel was needed by the U.S. Navy. From 1890, Carpenter used a process for treating steel ingots by air hardening. Application for a patent was delayed at first, because the process was deemed a state secret. , the first modern United States
battleship, was commissioned on November 20, 1895, and was considered a test bed for future battleships. This class of ship did not use Carpenter's steel, but
Harvey armor, in which only the facing of the steel plates was hardened. The
belt armor plates on
Indiana were at most eighteen inches thick, and most plates were far less. A standard 13-inch gun used on the USS Indiana was expected to penetrate 10–12 inches of Harvey armor. Testing showed that Carpenter's projectiles fired from the same gun could achieve penetrations of up to 15 inches. In November 1896, the Navy informed Congress that Carpenter's projectiles had tested successfully, calling them "the first made that would pierce improved armor plate". When exploded in Havana Harbor, Cuba, on February 15, 1898, "Remember the Maine!" became a rallying cry and the pace at Carpenter Steel became frantic as the demand for the new projectiles increased. Carpenter borrowed money against the value of his house to increase production. He was already in debt, but was considered a good credit risk because of the US Navy contracts. But these contracts used Carpenter Steel's entire production capacity, and payments were always late. Carpenter and the board members of Carpenter Steel Company became slightly estranged during the last part of 1897. Increased debts, business costs, employee benefits and other economic factors were the main part of the problem. Carpenter offered to resign as general manager, but this was not accepted until March 1898. The armor-piercing projectiles used during the
Spanish–American War of 1898, which devastated the Spanish fleets, were Carpenter projectiles. Letters later sent to Carpenter and to the Carpenter Steel Company gave glowing reports of their projectiles. ==Death and legacy==