New-York tribune., 1903-01-01
STEEL PROFIT SHARING.
FOR TRUSTS ElFPLOYES
Ifoo Millions Of Preferred Stock Of
tered on Three Years Time

The United States Steel Corporation. it was
announced yesterday has decided TO institute
a great profit sharing plan. participation in
which is offered to every one OF its 16S.ooo en-
poyes. The plan. fun details of which are pre-
scented in circulars issued yesterday 10 the stock
holders and the employees, respectively, has
been elaborated by the finance committee and
was approved by the board of directors at its
December meeting. It is purposed. first. to in
terest 4 large number Of the employees of the
corporation and its subsidiary companies in
becoming permanent Stockholders. and. second.
to engage on profit sharing basis the services
OF the presidents. officers. managers. superin-
tendents and all others charged with response
biity in managing the affairs of the corpora
ton thus making these men actual partners
With the stockholders in the ownership of the
corporation.
one Of the main purposes the circular to
the shareholders says. has been Ito devise some
plan that with equal fairness would apply to
every man. from the president of the Steel Cor
poration itself 10 the man with pick and shovel
working for one OF the subsidiary companies.
other objects which it is desired to accomplish
are: ITO interest the large number Of young and
able employees in the work OF more closely or
ganizing and systematizing the business in all
its branches and ramiacations; TO interest these
men in reducing the general expenses, as well
as the cost of manufacture; to offer to them an
poration's service. and to devise plan by which,
in the apportionment of money for the improve
Inent and development of plants, each subsidiary
company would be interested in what each other
company doing automatic regulation
against unnecessary duplication OF appropria-
fions thus being effected
FIRST CHANCE TO WORKING MEN.
Of the stock which is offered for sale. it is
pointed out. the worldngmen will be allowed
TO subscribe for much larger amount than the
officers subscribe for
In round figures the circular to the sharehold-
ers SAYS it requires S75, 100000 to pay the in
ierest oil the Corporations bonds dividends at
the rate of per cent on its preferred stock,
dividends at the rate of per cent, on its COM
mon stock and tc make sinking fund deposits;
and the profit sharing by the men in executive
places high and low. is to become operative only
after the realization of SS0,Oo0,000 of profits.
The circular continues
It has beer and still is intended. therefore, to
make such a adjustment of salaries as snal
seem proper in order that every man IN the en-
nloy of the Corporation of any Of its sub
sidiary companies viii feel that ne is receiving
a fair and reasonable compensation for his ssrv-
tees and that over and above such sum he shall
have an opportunity each year to earn a sufs-
stantial extra sum OF money, proNloeu ne az
his associates shall have been successful IN
earning for the stockholders substantial sur
lll1;s over and above interest. dividend and sink
In the matter of adjusting salaries, we have
gone far enough 40 know that on and after Jan
1,arv / 1908. we viii have in the employ or the
steel corporation and OF all OF lts supsioldiy
companies not to exceed twelve men with sal
aries Of $4,000 oa year or over ad ms % heion
ing TO the office OF president of the corporation
itseIf There will be not 70 exceed III nfty men
who viii receive from S1n,OOe to SZOooo a year:
-T-i,era viii be about two hunlred men who will
receive from s. COO to $4,000 year, and some
thing over fifteen hundred men VIII receive IIoiii
50 800 10 $4,000 q yea-
HOW THE NEW PLAN WILL WORK
In the past. If any subsidiary company de-
sired an appropriation for any purpose the presl-
dent of the company made his recommendation
te the officers of the steel corporation, who in
-estigated il fully and referred it to the execu-
tive committee. which considered it from every
point Of view, and il approved, passed 1t on to
the finance committee for final action Now
that the presidents and the other officers of
each subsidiary company are to be interested
in the profits of each of the other subsidiary
companies through profit sharing plan of the
steel corporation a whole, new system has
been adopted The presidents of the various
subsidiary companies are TO meet regularly as
manufacturing committee, and al their confer
ences all questions Of contemplated expenol-
lures and improvements on any plant, ques-
tions of purchasing supplies and other questions
Of common interest will be discussed, the recon-
officers of the steel corporation and to the e&-
ecutive committee, and ultimately to the finance
committee.
In tbe circular to the officers and employees of
the steel Corporation and the subsidiary COM
panies, the plan, which is twofold. is set forth
in detail. The first part is stated as follows:
THE PLAN IN DETAIL.
From the earnings of the corporation during
the wear 1902 there will have been set aside at
least 50 coo 0ee and much more as is neces-
sary for the purchase of at least 2o.ouo SHARES
~ fhe corroratjo preferred stock for the pur-
pose of ma king the following offer 20 all the
employees of the Steel Corporation and OF its sub
sidiary companies:
AT the present time there in the service Of
the corporation. and OF its subsidiary companies
about 16S01O employees. whom we propose no"
TO divide into six classes, as foIloWs-
Class A will include all those who receive
salaries of $4,000 a year over; Class B.
salaries OF from $4,000 TO $4,000 year; Class
c $1,000 10 $4,000 year; Class D, S2.JOO to
$1,000 year: Class E, $500 to S2,ooo a year;
Class T. $500 a year Jr less.
During the month of January, 1903, the above
mentioned stock will be offered to any and every
man in the employ Of the corporation, or any of
its subsidiary companies, at the price of $500
per share; subscriptions for this stock TO be
made on blanks obtainable at the Office of the
treasurer of any subsidiary company. Every
man can subscribe for much stock as he
chooses not to exceed the sum represented by
a certain percentage of his annual salary,
indicated in the following table:
Any man who belongs in Class A, as Indicated
In the preceding classification viii be allowed to
subscribe for an amount Of stock represented
by a not to exceed per cent of his annual
salary:
.. u per cent; Class E, 10 per cent; Class f,
20 per cent.
II on this basis Of subscription. more than
twenty-five thousand shares shall be subscribed
for twenty-five thousand shares will be award
ed to the several subscribers in the order Of the
classes beginning with the lowest, or Glass F,
pat1S 10 in