The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1903-05-29
Andrew Carnegie on Profit Shar;no.

Inc most convincing proof OF the
steady march of labor to a recon-
pense based more and more upon
profits, and in forms drawing cap
ital and labor into the peaceful
bonds of mutually, is to be credit
ed to the United States Steel Com
pany, the largest of all industrial
corporate and for which it de-
serves unstinted praise, as proving
genuine interest in the workmen
and sagacious thought for its own.
To this step I invite your earnest
attention, for it may we'll prove of
SURPRISING Importance and mark
an epoch in the history of the rela-
tons of capital and labor. 1t may
even be looked back to as having
furnished the solid foundation for
the solution of most of the trouble
some questions between them.
1t is in this form: twenty-five
thousand of the 500 shares of pre-
ferred cent stock was offered to it's
10000 employees at $3.50 per 500
share, in different amounts, accord
ing to their earnings, which were
subscribed for twice over; nearly
one-sixth of the men subscribed
one-half being salaried men.
Twenty thousand more shares of
stock were afterward provided,
making $4,000 in all, worth about
$4,50O,OOO. Monthly payments are
received. Another distribution of
shares is intended next year.
One valuable and praiseworthy
feature is that for five years those
holding their shares and still in the
service are given a yearly bonus of
S. upon their shares, and during
second five-year term bonus,
amount not yet fixed, is promised.
The third feature, equally praise
worthy, is the resolve to set apart
yearly from earnings, should these
exceed $S0,O00,OOO, l per cent of the
earnings, and for each $1OOOOyOOO of
earnings, an additional one-fifth of
1 per cent for fund to be awarded
to such of their officials and men as
have in the opinion of the Finance
Committee best deserved it, as a
reward of merit and not pro rata.
1t will be noted that the invest
ment is at the risk of the men.
This seems a feature which we may,
however, expect the corporation to
change as experience is gained, as
the plan is most wisely stated to be
subject to future changes. In most
of the States of the Union, labor's
precious earnings, surely the most
precious of all capital, are first
charge upon property, and this I
believe the only safe policy to fol-
low. Every workman a sharehold-
er" would end most of the conflicts
which sadden us, between capital
and labor. To effect this, every cor
poration could we'll afford to offer
to distribute part of it's shares
among the saving workmen, and in
case of disaster give preference to
repayment of principal as first
charge. Any desired legislation
with proper safeguards could be
readily obtained authorizing cor
porations to make savings of en-
.ployes up to certain sum for each
a preferred claim, ranking before
mortgage or ordinary debts
or the claims of shareholders.
akin to the mechanics lien
and the homestead exemption laws.
This seems due to the working
man, who, necessarily unacquaint-
ed with business, takes his shares
upon trust and becomes the bene-
ficiary or the victim of his EMPLOY
ers. He should be considered as
an inexperienced youth in the affair.";
besides, he is asked to invest not
solely for his own, but at least
equally for the advantage of his
employer. His adviser is not a
disinterested party and therefore
cannot be absolved from RESPONSE
bility, which would, I am codfident,
lead owners of the United States
Steel Company to save their trust
ing workmen from, loss through
following their advice, intended to
promote the mutual advantage of
the company and the workers. The
responsibility is not small, since
the circular assures the workmen
they are offered "a safer and more
profitable investment than the
workman could possibly find for
his savings elsewhere" Much
better, therefore, that legal form be
given to the moral claim.
There is another point of view.
the influence upon the prudent
workman of distraiting anxiety in