Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1903-05-08
STAKE IN FIRM MAKES MEN WORK stTTEF
Difer,nt Departments are Thus Brought
Closer Together
BILE EMPLOYEES BECOME PARTNERS
business is HelTed by Influx of New
Young Blood
IDEA SAID TO Be RAPIDLY SPREADING
British Iron and steel Institute is
Told Masters and Men Can Best
Ne Brought TOgether by
American Plan.

LONDON May THE annual meeting
Of the Iron and Steel institute here today
was largely attended. After being formally
installed IN the chair the new president,
Andrew Carnegie, remarked that he was
the hrst president Of the institute who was
not a British subject
Sir James Kitson, a former president Of
the Institute was presented with the
Ressemer gold medal for 1903
Mr.. Carnegie subsequently delivered his
inaugural address.
/ invite your attention this morning TO
the important question Of the organization
and management OF the most complicated
OF all pieces OF machinery-man-whic has
been my province.
Speaking from experiences. we had not
gone very far In manufacturing before dis
covering that perfect management In every
department was needed, ana that this de-
/. pended upon the men in charge. Thus be-
gan the practice of Interesting the young
geuiuses around us. they proved their
ability TO achieve unusual results, the
source of big dividends. These received
sunan percentages in the firm, which were
created to them at the actual cash in
Upon ,his they were charged interest, and
the surplus earned each year beyond this
was cteoited to their account BY tho
terms of the agreement three-quarters of
their colleagues had the right to cancel 1t,
paying the party the sum then to his
This provision was meant to meet pos
sible extreme cases OF incompatibility of
temper, or IL the recipient should prove in
capable of development or of enduring
prosperity, at death the interest reverted
10 the hrm 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 upon it, was
II transferred 10 them Thus thoughts of
possible loss never prevented concentration
absorbed in the daily quotations, for the
shares were not upon the stock exchange
or transferable This policy resulted in
number which was increased at the be-
ginning OF each year.
Become Future MIIIiOnaires.
BY this plan they were rapidly paying for
the rniiiionsires OF the then seemingly
somewhat distant future, which, however
proved not SO very distant. They are now
note that the plan kept them all IN excel
lent trsininS as RooT men 81 sun Living g upon
but not in esse. quite d difference.
We, did not fail to see, as the works en-
the mechanical men, the superintendents
and foremen, yet not one Of these had up
The business and the mechanical men
office and mill-were still widely separated.
Me fS ese ta 1ne r51 1t9 aemPt ag 70
li.tions. IL was made with our Captain
Jones, one Of your members, well known
and appreciated by many of you as in the
foremost rank of managers, perhaps the
foremost OF his day in America. He came
TO us as working mechanic at shillings
explained to the captain how several OF
the younger men in the business depart
ment had been made partners and were
actually receiving much greater rewards
than he, while his services were at least
equally valuable, and informed him that
never forget his reply: MIR. Carnegie,
about the business and never wish to be
troubled with H. / have plenty to trouble
Just give me laundering salary" Here
after" | said, the salary OF the president
the United safe5 t tb Is gSu5S sv eoPiS az 5s anS
My seniors, the presidents of the othel
manufacturing concerns, did not fail e
ness by paying a mechanic more saIar,
than any of them received
Needs More of same Kind.
Being much the youngest OF these grea
dignitaries. / humbly confessed my wrong
they knew where we could find two o
three more Captain Joneses at double thu
was worth several ordinary salaried presi
dents The captains declinature OF part
within my experience. None OF the othe
mechanics ever preferred salary TO part
compare with that form. Let me impres
soon have, OF. should have some day, tn
choice laid before them.
From that time forward the union of tn
mechanical and business partners wen
@i 5fsog Was Without his % interest IN fSe Sus %
ness, as pertaining to the position and n
board of management, or important com
mittee, was without a mechanical repre-
sentative Thereafter mill and office con
ferred upon all Important sales or cor
tracts. The mechanics and the men of nj
fairs were In constant consultation an
fellow partners. one OF the most profitabl
changes that ever we made.
There was another step taken in III
same direction. Men having others unde
-. wNWH Int
proceeds, or savings in cost, in their de-
partment. the managers were rewarde
by handsome bonuses beyond their salar!
based upon the general profits OF the yea
Thus, as a rule every man in authorit
& sSre 'Snn on the as sp TsS S tse
later. and was worth any two mere en-
and denied special recognition.
This plan OF reward according TO result
come so general and is spreading so IA
we may be sure Il has proved its efficienc
There are few large department stores
have not been forced to adopt IT,
This plan IS probably bound TO preva
ing concerns. and the sooner the bette
for the greater number Of the worke
reward. by sharing its gains, the more ha
monous and therefore more profitable 4
both must the relationship become.
Ought 90 Know Each other.
II the managing owners ana omcials
great corporations could only be know
to their men and. equally important, the
men known 10 their employers and d
hearts OF each exposed TO the other, as vi
as their difhculties, VIC should have
that troublesome field such harmony
delights US in the domestic, II Is main
the ignorance OF contending parties
each others virtues that breeds quarrS
everywhere throughout the world. betwe
individuals, between corporations and thu
men and between nations. I'VE only ha
those We do not know" Is a sound max
Viii we do ralI akrar 10 haar in ind
In the progress toward more harmonic
conditions between employer and el
ployed we see that the system OF payne
by hNed wages has been largely supplant
4 by payment according TO value OF servi
rendered by workmen In positions OF a
thority over Others. and by recognition n
only in money. but In position which oft
counts quite as much as coin and not 8
dom much more with the ablest. There
mains still receiving the nxed wage