The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-08
CARNEGIE To BRITONS
ADDRESS OF GREAT INTEREST TO
EMPLOYERS AND EMPLOYEES.
How the PhilanthrOpist Built Up His
Business by Putting Mechanics I'm
ControI-Proft Sharing.

LONDON, May THE annual meeting
of the Iron and Steel Institute here to-day
was largely attended. After being formally
installed in the chair the new president.
Andrew Carnegie, who remarked that he
was the first president of the institute who
was not British subject. presented Sir
James Kibon. a former president of the
institute, with the Bessemer gold medal
for 1903. Mr.. Carnegie subsequently deliv-
cred his inaugural address. which was lis
tened to with much interest. He told how
he had trained young men to direct the
various branches of his great industry in
the United States. He said in part:
1--WE did not fail to see as the works en-
larged how much success depended upon
the mechanical men, the superintendent
and foremen, yet not one Of these had up
to that time been admitted as a partner.
The business and the mechanical men.
office and mill, were still widely separated.
Well do L remember the first attempt to
bring these two departments into closer
relations. 1t was made with our Captain
Jones, one of your members, we'll known
and appreciated by many of you as in the
foremost rank of managers, perhaps the
foremost of his day in America. He came
to us as working mechanic at eight
ShillingS per day. / explained to the cap
tain how several of the younger men in
the business department had been made
partners and were actually receiving much
greater rewards than he, while his services
were at least equally valuable, and in
formed him that we wished TO make him
partner. / shall never forget his reply:
Mr.. Carnegie, am much obliged, but
know nothing about business and never
wish to be troubled with 1t. / have plenty
to trouble me here in these works. Leave
SALARY f and @ sad e the salary of
the President of the United States is yours,
captain and II remained till the sad
day of his death.
MY seniors. the presidents of the other
manufacturing concerns, did not fail to
take me to task for running the steel bust
ness by paying mechanic more salary
than any of them received. Being much
the youngest of these great dignitaries L
humbly confessed my wrongdoing, not,
however, failing to inquire if they knew
where we could find two or three more
Captain Joneses at double the price. We
did not overpay the captain: he was worth
several ordinary salaried presidents. The
the only one which ever came within my
experience. None of the other mechanics
ever preferred salary to partnership. and
they were wise. Nothing can compare with
that form. Let me impress that upon the
younger members here who may soon have
or should have some, day the choice laid
before them. From that time forward the
union of the mechanical and business part
ners went steadily forward until no man.
ager of mill was without his interest
/
ton and no board of management inn
portant committee was without a me-
chanical representative. Thereafter mill
and office conferred upon all important
men of affairs were in constant consulta-
ton and fellow-partners, one of the most
profitable changes that ever was made 49,,
same direction. Men having others under
their charge were given an interest in the
proceeds; or savings In cost. in their depart
/ MOI VIC 20, do hn
limits of a department the managers were
rewarded by handsome bonuses beyond
their salary. based upon the general profits
of the year. Thus, as rule, every man in
authority became more than mere wage
Garner. He felt himself on the first step of
the ladder which led to partnership sooner
or later, and was worth any two mere en-
ployes paid only a daily or monthly wage
and denied special recognition.
This plan of reward according to results
for heads of departments has already be-
come so general and is spreading so fast we
may be sure 1t has proved its efficiency.
There are few large department. stores or
important houses in retail trade which have
not been forced to adopt it.
This plan is probably bound to prevail
to greater or less degree In manufacturing
concerns, and the sooner the better, for the
greater number of the workers capital can
compensate, and in one sense reward, by
sharing Its gains the more harmonious and,
therefore, more profitable for both must the
relationship become.
II never see fishing fleet set sail without
pleasure. thinking this is based upon the
form which is probably to prevail generally.
Not man in the boats is paid fixed wages.
Each gets his share of the profits. That
seems to me the ideal. 1t would be most
interesting If we could compare the results
of a fleet 20 uianned and operated with one
in which men were paid fixed wages, but I
question whether such a fleet as the latter
exists From my experience 1 should say
crew OF employees against a crew of part
ners would not be in the race. .
The idea of making every workman a
capitalist and of sharing large percentages
of the profits among those rendering excep-
tional service will probably encounter the
opposition of the extremist on both Sides
the violent revolutonist of capitalistic con-
ditions and the narrow. grasping employer
whose creed is to purchase his labor as he
does his material. paying the price agreed
upon. and there an end. But this opposi-
ton will. believe, amount to little. 1t
will even speak well for the new idea If
secuted by the extremists and commended
| by the mass of men who are on neither dan
gerous edge, but in the middle where usu-
ally lies wisdom |"