Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1903-01-01
WORKMEN TO Be
STOCKHOLDERS.
U, S, Steel Co, to lnaugurate Sys-
tenn to Make L Possible,
WILL SHARE IN PROFITS.
The Plan IL Result Of Months of Prep
aration by Finance Committee
OF Corporation.

oular, one to the stockholders and 10
the officers and employees, the United
States Steel corporation announces It's
Intention to inaugurate system
whereby the humblest workman on its
rolls, may, II he desires, become
permanent stakeholder and share IN the
profits of the corporation. The scheme
Is the result OF months Of preparation
BY the finance committee Of the cor
polation, and the circulars are signed
by George w, Perkins, 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 it.
self 10 the man with pick and shovel,
working for one Of the subsidiary COM
lNnles
The circular goes on to say that at
this time there are about $4,000 stock
holders, who II Is believed, would feel
Il greater sense Of security in the cor
lorations 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 he paid only
after the realization of SSO,UOO.OOO OF
profits. This represents interest on
bonds dividends on stocks and reserve
for sinking funds.
The plan inviting officers and en-
rloyes to participate Is divided into
two parts. Part prescribes that from
the earnings Of the corporation during
the year 1902 there Will have been set
aside at least S2,O0OOOO and as much
more as is needed for the purchase OF
at least $4,000 shares OF preferred
stock, which will be offered as follows
to employees Of the corporation and
constituent companies;
At present the corporation and sub
sidiary companies employ about l6S,OyO
men, whom 1t is proposed TO divide
into these six classes;
Glass A win include all those who
receive salaries of $4,000 a year or
over.
Glass b win include all those who
receive salaries of from $4,000 10 $4,000
year.
Glass c win include all those who
receive salaries of from $1,000 to $4,000
a year
Glass D viii include all those who
receive salaries of from $500 to S5OV,
q year.
Glass f win include all those who
receive salaries OF from $500 10 $500
q year.
Class f will include all those who
receive salaries Of $500 year or less.
The preferred stock will be offered -
any employe during January at $3.50
rer share. Its closing price today was
SS5.S1la)
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; class c, 10 per
cent; class d, u per cent; class Il. 10
per cent class f, 20 per cent.
In part two Of the plan 1t is ex-
planned that the corporation has been
and is now making changes In the sal
aries Of men occupying official or semi
official positions, and the directors
have approved these recommendations
Of the finance committee;
Whenever 100000 and less than
800. 000. 900 Is earned in 1908, / per cent
shall be set aside,
Whenever SSO0OO,0OO and less than
800, O00. 600 is earned during 1908, 12 per
cent shall be set aside.
Whenever 500, 600 and less than
Sic. 0O0 900 Is earned during 1908, IA per
cent shall be set aside.
Whenever $40 900, 900 and less than
$l20, 100000 is earned during 1908, 16 per
cent shall be set aside.
Whenever 3O.00O,00O and less than
sl4O, 900 900 is earned during 1903, per
cent shall be set aside.
Whenever Sl40. 00O. 900 and less than
$3.50, 100000 Is earned during 1903, 2.25
per cent shall be set aside.
Whenever $3.50, 600, 600 and less than
$3.50. 900 900 is earned during 1908. 20
pr cent shall be set aside.
The question OF what constitutes
profits Is TO be determined entirely by
the finance committee, who, Il is stat
ed will have no interest In the profit
sharing plan. If SS00OO,0OO is earned
IN the coming year 100000 will be set
aside, one half 10 be distributed in
cash quarterly. the other half TO be
reserved until the end of the year and
invested in preferred stock. the stock
thus purchased TO be divided. one half
to employees entitled thereto the other
half to remain with the treasurer OF
the corporation. Each shareholder IS
90 receive a certificate of his Interest
containing these provisions:
First-That II he remains continuous
ly in the service Of the corporation or
81 one or another Of It's subsidiary
companies for five years the stock shall
be delivered 10 him ard he may do as
ne likes with Il.
second-That II he dies or becomes
totally and permanently disabled while
IN the employ OF the corporation, or OF
one or another OF It's subsidiary com
panles. the stock will be delivered TO
his estate or 10 him,
Third-That he can draw the divi-
dends declared on the stock while u
Is held for his account and he remains
I'm the employ Of the corporation. or
Of one or another Of its subsidiary COM
parties.
Fourth--That II without previous
consent voluntarily he shall have quit
ted the service OF the corporation or
~ It's subsidiary companies. he shall
forfeit all right TO this stock, and IN
such case Il viii be held in a fund,
which. at the end Of five years. will
b. divided among such employees as
shall have complied with all the con-
dltlons.
Thus % per cent Of all the money set
aside in this profit sharing plan will be
held for fye years arA win be given
TO such only as at the end of
period shall be IN the employ Of the
corporation, or one or another or us
subsidiary companies, from and since
Jan !. 1909.
High officials Of the steel corporation
declined today 10 discuss the reported
approaching retirement OF President
SChwab.
Chinese Sailors Transferred.