New-York tribune., 1903-05-08
BUILDING Up A BUSINESS.
He Tells Of the Benefits Of PROFIT
Sharing.

sDH0tRS
London Nav THE annual meeting of the
Iron and Steel Institute here to-day was largeiy
attended. After being formally installed 'is
new president Andrew Carnegie. who rethaiA AeU
that he was the first president of the institute
who was not a British subject presented TO 81
James Kitson. former president OF the Aii7'
,,+. the Ressen,er Gold Medal for 1903.
Mr.. carnegie's speech as president was aS
follows:
successor is struck by IN value or . bne SCI s,song
them the chief inventors and pioneers IN Nv whose
yteei-Bessemer. Semens Bel and otneis s csrreIy
ssne who has flied the office who has not ,cb oe Of
his inaugural address 70 aei15 ae',l VI Tsf living
sI9hority Gpon it. What contrast the PreSeIo NJ
AL e;+ber as inventor chemist. investigatoT, , OF
mechanicisn. None knoW SO wei beeS eS centred on
the business department and that IL is eNPein Tt
=. tbs saone Mloh Which ifTers most. perhaps
from any other-at least an AmeIlGaIn s instinct
sn 30 more be nstiiied in by teachers than
+hn boring instinct could be developed by feeoins
the hoilne ,oie invite YOUR attention TINS
morning therefore TO the important qgestiom ot e
che orsauization and management OF tna' i;ch th3S
compiicated of eli pieces of machinery-In8i III
s,esEinr 1g from experience had not gone very
far in manufacturing before discovering ma
and that This depended upon the men IN cnarge, .
Thus began the practice of interesting lne Liz t
geniuss l a1oens US Tcsmits The source of big diy-
ends IheSe TeSSa rses Sna5i to them at the actual
cash invested. charge being mace loI ,Sa sur
Upon this they charged interest ano tne sur
plus earned each year beyond this was creaeTn nf W
heir account By the fees 81 had the right to
,-snce4 n paving the party the sum then 10 ms ms
E Te This 9es PFeVon a oinncompatbiiity wag Of temper
II the recipient should incapable Of deSeiGp &
terest reverted to the firm at Its book value
NOT ABSORBED IN STOCK MARKET
The young were not per peTmttted bt tSsT to share
any financial 9n,iganol 1o9ts a1 and there was no
further liability Upon it, was IL lraIsie1to - 81 ,-e1
aS 5e aGs hGGsts upon on heir daily duties They
were not absorbed in the daily ecta,eps or trans
feTrSie This policy resulted making some me
69sSda d yqSg qe gbesinnih geT1nih5 Of is eac Year
BY this plan they were rapidly paying ;,,issras i
Of the then Seemingly somewhat distant future
which however ProEeo hUI ;n 80 roI fail however to
1ofe that the plan kept them all in excellent tram
miiionaires in posse. indeed. but not in esse.
quite difference, for monalres seem SEEM hitborto
Sevelon when still very young. many Iltherto
S1nsuspected weak spots in their constitutions re-
quiring careful nursing ano ma many ysfTnent to
hard continuous exertion that il does not seen IN
1ndaly burdened before reaching middle age The ne
zest Of the chase is oyer too ;3nnaire STGn eploye
strains himself unduly by overexertion 10 SOM
les9Te ;asd 5o Sanetence new duties TO his family
and to himself arise Money is properly only tne
We did not fail to see. the works enlarged di
how much success depended upon the mechanical
men. the superintendents and foremen- neI uoe @
one of these had up to that time been aoInlIeu 90
5c s5d rWeTe stili widely separated Well
do remember the first attempt to Dr'hg was
made with Captain Jones, one OF your ineili n
YOU as in the foremost rank Of managers, perhaps
The foremost of his day in America he came e 10
] explained 70 the captain how several OF me ane
MADE partners and were actually receiving much
greater rewards tnan he whiie d fnrmed tlS him that
we wished TO make him a partner shah never
@Nr. Carnegie. I am much obliged. but know
nothing about business and never s %ish m 70 be De
in these works Leave me as L am. and just give
laundering salary - - 49, r,;zo-+
Of the United States is yours captain, ana 50
IT remained till the sad day Of his death
MECHANICAL PARTNERS.
The captains declination OF partnership was the
Zone Of the other mechanics ever preferred salary
10 partnership and they were wise FROM lfaI
business partners went steadily forward until no
manager OF mill without his interest IN IN ttle Inc
board of management important committee
was without mechanical representative: There
al5eI NH m ai.r rI1a I1ecbapirs and the men
partners-one Of the most profitable changes that
There was another step taken in the same direc-
ton. Men having others under Their charge Were re
given interest in the proceeds or savings & IN i
cost in their department Where il was possible a
were rewarded oy handsone pouSss pes % Vt1a & 1Lie
salary based upon the general prohts OF the year.
Iolt & e 81. steD of he ladder which led TO part
llership sooner later, and was worth any two
mere employees paid only daily or monthly wage
The great Secret of Success in business of all
kinds. and especially in manufacturing where a
small saving in each process means fortune Is a
liberal division Of profits among the men VINO help
ter There lie latent unsupported powers in willing
men around US which only need appreGlau9n a1 ana
rewards alone viii not, however insure these, Tor
TO the most sensitive and ambitious natures there
must be the Of sympathy. appreciation friend
ship. Genius is sensitive IL all ITS forms ana II Is
unusual Tot ordinary ability. that tels even ., IN
practical affairs. You must capture and keep the
Fore his is brsin can do its best Indeed this law
has no limits. Even the mere laborer becomes more more
srhcient as regard for his employer grows. Hand
service or head service, il is heart service that
Ia the progress toward more harmonious condi-
tions between employer and employed we see @ tnat
largely suppanted by payment accordng TO value
9utho-ity over others and by recognition not only
in money, but in position which OFTEN counts quite
the ablest. There remains stil receiving the fixed
wsee tne geso f4 rs ~ afon 81 ~ enniover and en-
ployed that these have not failed TO rise greatly
ton Of the worker has not passed over even the
humblest. but has reached and benefited all
THE SLIDING SCALE.
But the irresistible pressure which has forced
change after change in the relations Of capital and
labor still operates unchecked We have evidence
Of this in another important advance. the sliding
scale which provides not a fixed wage but in some
degree settles by results Increased demand brings
higher prices and profits TO the employer, which in
turn bring 10 the workEnen higher returns. So that
as the employers profits rise and fall so do the
workman s rewards. If 1 were asked what the
hest service the Carnegie Company was ever able
render the wage Garner. next to giving steady
employment at wages equal 10 any. should an
swer. ''7ersuadng them 20 adopt the sliding
scale with a minimum insuring living wages, at
it's works at Braddock. fourteen years ago. which
las given perfect Satisfaction from that day this