New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-05-08
MR. CARNEGIE ON PROFIT SHARING.


Having been installed as president of the Iron
and Steel Institute I'm London yesterday, Mr..
Andrew Carnegie delivered an exceedingly in
teresting address relating chiefly TO the various
ways in which employees may become concerned
as mariners or stockholders in the earnings or
eapital he first told how the Carnegie COM
pany invited one after another, group of I'M
usually competent young men TO become mem
bers of the firm, the profits of the business
gradually paying for their shares, which were
not transferred TO them until they had been
fully paid for Thus having DO power TO trans
fer their shares. and speculative interest
therein. they were under no temptation 10 divert
their thoughts and energies from their duties,
but rather were acutely sensible of special IN
ducement 10 make their services increasingly
valuable. While such an arrangement with the
mass of employees was obviously impracticabe,
some scheme of general profit sharing might
have been adopted. but. as Mr.. Carnegie went
on TO say. 1.-THE thought of asking the working
--nlan TO risk his precious savings in the manu-
featuring or any form of business was always
"dscarded by us as too dangerous for him"
Instead of taking such chances, the men were
encouraged and helped 10 secure homes Of their
own that being regarded as the whole the
safest and therefore the wisest. investment
which they could make.
This part OF Mr. Carnegie's address followed
some impressive citations from long record
OF disaster. You know too well" he said,
how the path of iron and steel is strewn with
financial loss in all countries and that all
forms Of business must encounter grave risks"
Hence the government savings banks of Great
Britain though they allow only 212 per cent in
terest are a great boon 10 the investing work
man Indeed so firmly convinced is Mr. Car
negie Of the risks Of profit sharing that there
ie suggestion of inconsistency in his warm
commentator of the arrangement under which
employees of the United States Steel Corpora
ton have subscribed on special terms TO large
amount of its preferred stock III his opinion
the greatest of all industrial corporations de
serves unstinted praise for thus eyincing a
genuine interest in its workmen while saga
ciously consulting its own advantage But the
seeming inconsistency is perhaps explained by
what follows MIR. Carnegie remarks that the
sfockholding employees of the company may re-
Gently have felt some soicitude seeing the
market price of their stock fall below the point
at which they subscribed for IT, This may
mean little TO the of affairs. familiar with
the ups and downs of the mercurial Stock Ex-
change. But what must be the effect upon
the uniformed workman? OF this ! am well
"assured-the workman whose thoughts are
upon the speculative surprises Of the exchange
will not prove desirable. II bis thoughts
"are upon the Stock Exchange they cannot be
upon the machinery; and machinery, like art,
lis jealous mistress, brooking no rival claim
~ant TO its absorbing demands" Absolute Sc
curity for the workman's investment is indis-
rsensabIe and something more is required than
the United States Steel Corporation has yet
done.
What then. is the next step TO be taken, &C
eording 10 MIR Carnegie? Since, In his opinion,
the policy of every workman a shareholder
would end most of the conflicts between capital
and labor, every corporation could well afford
to distribute q proportion Of its stock among