The Savannah morning news., 1903-01-01
1T OPENS ITS ARMS
A GREAT COOPERATIVE PLAN HAS
BEEN FORMED
BY U. S. STEEL CORPORATION.
HUMBLEST WORKMAN MAY BE-
COME A STOCKHOLDER.

of Company Plan Was George
w. Perkins'-It is Believed That IL
Will Operate to the Mutual Adj
vantage OF the Present stock
holders and Employees who Take
Advantage of Opportunity.
New York, Dec. 31.-In a double cir |
cular, one to the stockholders and the |
other to the officers and employees. the |
United States Steel Corporation an |
nounces its intention to inaugurate a |
| system whereby the humblest work.
man on it's roll may, if he desires, be- |
! come a permanent stockholder and |
share in the profits of the corpora
ton.
The scheme is the result of months
of preparation by the Finance Com
mittee of the corporation, and the cir
culars are signed by George w. Per-
kins. chairman. The plan is said to
have originated with Mr.. Perkins.
The circular to the stockholders
| points out the apparent advantage of
the plan, which was devised with
equal fairness to every man, from the
president of the steel corporation itself
to the man with pick and shovel.
working for one of the subsidiary COM
panies."
The circular goes on to say that at
this time there are about $1,000 stock
holders, who, it is believed, would feel
A greater sense of security in the cor
poration's earning power ii they knew
that officers and managers generally
were willing to enter into a contract
by which part of their compensation
for services rendered shall be paid only
after the realization of $780, 900 of
profits This represents interest on
| bonds. dividends on stocks and reserve
for sinking funds.
Employees Into Glasses.
The plan inviting officers and en-
| Moves to participate is divided into
| two PARTS. Part one prescribes that
from the earnings of the corporation
during the year 1902 there Will have
beeen- set aside at least $2,OOO,OOO, and
as much more as 1t needed Tor the
| purchase of at least $4,000 shares OF
preferred stock, which will be offered
| as follows to employees of the cor
| poration and constituent companies;
AT present the corporation and sub
sidiary companies employ about l68,-
900 men, whom it is proposed to divide
into these six classes: Glass A Will
include all those who receive salaries
| of $4,000 a year or over; Class B will
include all those who receive salaries
of from $4,000 to $4,000 year; CLASS
C will include all those who receive
salaries of from $4,000 to $4,000 year;
Glass D will include all those VINO re-
ceive salaries of from $500 to $4,000
year; Glass E will include all those
who receive salaries of from $500 to
50, 500 a year; Glass F. will include all
those who receive salaries of $500
year or less.
The preferred stock will be offered
to any employe during January at
$3.50 per share Qts closing price to-
day was SS5.S112)
| Employees can subscribe for an
amount of stock not exceeding the sum
represented by a certain percentage
of their annual salaries as shown in
this table:
| Glass B, s per cent; Glass c, 10 per
cent; Glass d, u per cent; Class E,
Is per cent; Glass F, 20 per cent.
Provisions That Are Imposed.
In part 2 of the plan it is explained
that the corporation has been and is
now making changes in the salaries
of men occupying official or semi-of-
fetal positions, and the directors have
approved these recommendations of
the Finance Committee:
Whenever $50 900, 900 and less than
800, 900, 900 is earned during 1908, 1 per
cent. shall be set aside; whenever $780,
1000 and less than 800, 900, 900 is earn
ed during 1903, IL per cent. shall be set
aside; whenever 500, 10000 and less
than $110 900, 900 is earned during 1903,
IA per cent. shall be set aside; when
ever 100000 and less than $780,
100000 is earned during 1903, 1.6 per
r.,A ct .1sF The
OOO,O 900 and less than $130, 100000 is earn
ed during 1903, is per cent. shall be
set aside: whenever 100000 and
less than S140,000,000 is earned during
1903 per cent. shall be set aside;
whenever $40, 000. 900 and less than
$780, 0O0,0 900 is earned during 1903, 2K
per cent shall be set aside: whenever
| $3.50 900 and less than $160000,000 is
earned during 1903, 21s per cent. shall
| be set aside.
| Provisions that are Imposed.
The question of what constitutes
profits is to be determined entirely
| by the Finance Committee. members
| of which, it is stated, will have no
| interest in the profit sharing plan. If
| $4,000. 900 is earned in the coming year,
100000 will be set aside, one-half to
be distributed in cash quarterly. the
| other half to be reserved until the
| red stock the stock thus purchased
/ TO be divided, one-haff to employees en-
| titled thereto, the other half to re-
main with the treasurer of the corpar-
| ton. Each shareholder is to receive
a certificate of his interest containing
| these provisions:
! First-That If he remains continu-
! ously in the service of the corporation
or of one or another of its subsidiary
| companies for five years, the stock
| shall be delivered to him and he may
/ do as he likes with 1t.
| Secondhand If he dies or become to-
| tally and permanently disable while |
| in the employ of the corporation or
| of one or another of its subsidiary COM |
panies, the stock will be delivered to |
| his estate or to him.
| Third-That he can draw the divi- |
| dends declared on the stock while it is |
| held for his account and he remains |
| in the employ of the corporation or |
| of one or another of it's subsidiary COM |
| panies.
| consent voluntarily he shall have quit |
| ted the service of the corporation or |
/ of one of it's subsidiary companies, he |
/ shall forfeit all right TO this stock, |
| and In such case il viii be held in a |
| fIInd. which at the end of five years. |
| will be divided among such employees /
as shan have complied with all the /
| conditions.
Thus rs per cent. Of all the money