The professional world. (Columbia, Mo.) 1901-192?, 1903-05-15
Mr.. Carnegie in England
HIS ADDRESS TO THE IRON AND
STEEL MEN OF ENGLAND.

ana LABOR.
London, May 1.-THE annual meet
ing Of Iron and Steel institute here to-
day was largely attended. After be-
ing formally installed in the chair, the
new president, Andrew Carnegie, who
remarked he was the first president of
subject, was presented by Sir James
Kitson, the former president of the in
%stitute, with the Bessemer gold medal
fer 1903. Carnegie delivered his in
augural address, which was listened to
with much interest.
Mr.. Carnegie, after expressing his
thanks for the honor conferred upon
him, paid a high tribute to the memory
of the late Abram s.. Hewitt, of New
York. He then braDched off into a
lengthy history of the profit-sharing
policy adopted by the company of
which Mr.. Carnegie was the head, say
ing in part:
Speaking from experiences, we had
not gone very far in manufacturing be-
fore discovering that perfect manage
ment in every department was needed,
and that this depended upon the men
in charge. Thus began the practice of
interesting the young geniuses around
us, as they proved their ability to
achieve unusual results, the sourc of
big dividends. These received small
percentages in the firm, which was
credited to them at the actual cash
invested, no charge being made for
good will. Upon this they were charg-
ed interest, and the surplus earned
each year beyond this was credited to
their account. BY the terms Of the
agreement th~ree-quarters of their col
leagues had the right to cancel it, pay
ing the party the sum then to his cred
it. This provision was meant to meet
possible extreme cases Of incompati-
bility Of temper, or if the recipient
should prove incapable Of develop
ment, or Of enduring prosperity. At
death the interest reverted to the firm
at it's book value. The young men
were not permitted to assume any
financial obligation, and not until their
share was fully paid by the profits
and there was no further liability up
on it, was it transferred to them. This
policy resulted in making some 40 odd
young partners, a number which was
increased at the beginning of each
year.
BY this plan they were rapidly pay
ing for their interests and promising
to become the millionaires of the then
seemingly somewhat distant future,
which, however, proved not so very
distant. They are now rich men. You
will not fail, however, to note that the
plan kept them all in excellent train
ing, as poor men still living upon their
salaries, ~millionaires in possibility,
indeed, but not in fact quite a differ
ence, for millionaires seem liable to de-
velop when still very young so many
hitherto unsupported weak spots in
their constitutions requiring careful
nursing, and many absences and short
hours, and a dozen other impediments
to hard, continuous exertion that 1t
does not seem good for their robust
health that they should be unduly bur
dened before reaching middle age. The
zest Of the chase is over too soon. 1t
will be found the exception when a
millionaire employee strains himself
unduly by over exertion to some leis
ure for self-improvement. When a man
has achieved a competence, new du'
ties to his family and to himself arise
Money is properly only the means to
an end.
This plan of reward is probably
bound to prevail to greater or less de
gree in manufacturing concerns, and
the sooner the better, for the greater
number of the workers capital car
compensate, and in one sense reward
by sharing it's gains, the more harmon
ious and therefore more profitable fol
both must the relationship become.
The great secret of success in bust
ness of all kinds, and especially II
manufacturing, where a small saving
in each process means fortune, is a lib
eral division of profits among the mel
who help to make them, and the wild
err distribution the better. There III
latent unsupported powers in Willing
men around us which only need appre
citation and development to produce
surprising results. Money reward
alone will not, however, insure these
for to the most sensitive and ambi
| tious natures there must be the not
(, of sympathy, appreciation, friendship
Genius is sensitive in all its forms, ant
it is unusual, not ordinary ability, tina
I tells even in practical affairs. Yo'