The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-12-29

Under plan recently recommended to
the stockholders of the Great Northern
railway by President James J. Hill and
the management the capital stock of the
read will be increased 10 per cent in
February and the employees Of the road
given an opportunity to invest in the
issue at par. The plan is one which has
been under consideration for some time
and its details have just begun to be
known.
The fact that such a system would be
introduced has not been known except
to a few Of the officers of the road and
one or two intimate friends of President
Hill Its scope IS extensive, and 1t will
result practically in the formation of a
cooperative scheme between the man
agement and the employees of the road,
which will produce results beneficial to
both
President HllIs idea will be to set apart
a considerable portion of the increase in
capital stock, amounting to a sum of
several hundreds Of thousands. for the
exclusive benefit Of his employees. This
stock will be sold to employees at par.
and every employe of the road will have
an opportunity to invest his savings in
gilt-edged diyidend-paying securities.
AT THEIR FACE VALUE.
Great Northern stock is now worth
about $175 q share, and IS one of the most
desirable securities in the market. By
paying cash the employees will be en-
abled to secure stock worth almost double
what they will pay for it, as the increase
will hardly affect the present market
value. One provision only Is made with
reference to the issue to the employees.
and this is to the effect that only those
employes who receive a salary Of 81, 900 or
less per year will be eligible to purchase
ii on the terms mentioned 1t is the pur-
pose of the management to place the
stock where it will do the most good.
and to prevent its going into the hands
Of those who do not need it. No indi
vfdual holding can be increased to more
than $1,000. The interest on the invest
nent will make this method of slowing
away savings more desirable to the en-
ployes than to bank them and will paw a
better profit
The management intend that the stock
shall go into the hands Of the engineers.
conductors, trainmen. switchmen, opera
tors and others comprising the
RANK AND FILE
of the employees The plan will work to
the greatest good of both the manage
ment and employees, in giving the former
the assurance of the entire cooperation
of the latter, and giving the employees a
safe and desirable investment for such
savings as they accumulate. Employees
who have been in the company's serv-
ice longest will be given the preference,
as a reward for faithful services In
giving the men a chance to invest at par
in the shares Of the system they prac-
tically receive a present amounting to
whatever the stock is quoted at on the
market above par.
The announcement of the further de-
tails of the plan will not be made until
scme time following the first of the year.
The allotments of stock will be made in
February. The plan which the Great
Northern is about to inaugurate has been
in successful operation on the Illinois
Central for several years. The results
are said to be very satisfactory. In Civ
ing the employees the right to subscribe
to stock their better service is secured
and the railroad receives the benefit of
their assistance at times when, under
ether conditions, 1t would not be rem
dered.