The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1903-01-07
STEEL TRUST TO SHARE PROFITS.
Plan. Proposed Whereby Every
EmpIoye HAY Become a
Stakeholder.

St0ckh0lder.
New York, Dec. 31.-In a double
circular, one to the stockholders and
the other to the officers and employees,
the United States Steel corporation
announces its intention to inaurgate
system whereby the humblest work
man on it's roll may, if he desires, be-
come q permanent stockholder and
share in the profits of th9 corpora
ton. The scheme is the result of
months Of preparation by the finance
committe of the corporation, 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, to the man with pick and shovel
working for one Of the subsidiary COM
panies."
The circular goes on to say that at
this time there are about So, 600 stock
holders, who, it is believed, would feel
a greater sense of the security in the
corporations earning power if they
knew that officers and managers were
willing to enter ino contract by
which part of their compensation for
services rendered shall be only after
the realization of $50, 600, coo Of profits.
This represents interests on bonds,
dividends on stocks and reserve for
sinking funds.
The plan inviting officers and en-
p1oyes to participate is divided into
two parts. Part one prescribes that
from the earnings Of the corporation
during the year 1902 there will have
been set said at least 81, 900, 900 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 corpora
tion and constituent capital. At pre-
sent the corporation and subsidiaries
companies employ about l68, 600 men
whom it is proposed to divide into
these six classes:
Glass 40 will include all those
who receive salaries Of 5000 a year
or over.
Glass "B" will include all those
wllo receive salaries of from $4,000 to
$4,000 a year.
Glass "C', will include all those
who receive salaries Of from S., 600 to
$4,000 year.
Glass @D'' will include all those
who receive salaries Of from 81, 500
to 5000 year.
Glass "E'' will include all those
who receive salaries OF from $500 TO
Class aF;' will include all those
who receive salaries of $500 year or
less.
The preferred stock will be offered
tc any employe during January at
S32. so per share (its closing price to-
day was $500.
Employees can subscribe for an
amount Of stock not exceeding the
sum represented by a certain percent
age of their annual salaries as shown
in this table:
Glass sB." s per cent. class &C."
10 per cent. class I'D. " II per cent.
class s'E, y Is per cent. !; class ssF'' 20
per cent.
In part two of the plan, it is ex-
planned that the corporation has been
and is now making-changes in the
salaries of men occupying official or
semi-oficial positions, and the direc-
tors have approved these recommends
tions of the finance committee.
Whenever $50, 600, 900 and less than
| $50, 600, 600 is earned during 1903, l per
cent. shall be set aside.
Whenever 0,O0O, 600 and less than
500, 600, 600 is earned during 1908 1.2
per cent. shall be set aside.
Whenever 800, 600, 900 and less than
S11O, 600, 600 is earned during 1903, Ia
per cent. shall be set aside.
Whenever s110, 600, 900 and less than
s12o, 900, 600 is earned during 1903, 1.6
per cent. shall be set aside.
Whenever S120, 600, 900 and less than
/ S130, 600, GOO is earned during 1903, 1.6
per cent shall be set aside
Whenever $50, 900, 600 and less than
$40, O00 600 is earned during 1903, 2
per cent. shall be set aside.
Whenever s140, 00G, 600 and less than
$50, 600, 600 is earned during 1903, 214
per cent. shall be set aside.
Whenever $50, 600, 600 and less than
! Sl60, OUO, UUO is earned during l9U5, Z72
per cent, shall be set aside.
The question of what constitutes
profits is to be determined entirely
by the finance committee, which it is
stated will have no interest in the
profit sharing plan. # $50, 900, 600 is
earned insthe coming year $500, 600 will
be set aside, one-half to be distri buted
in cash quarterly, the other half to be
reserved until the end of the year: in
vested in preferred stock; the stock
thus purchased to be divided one-half
to employees entitled hereto, the other
| half to remain with the treasurer Of
the corporation. Each shareholder is
to receive a certificate for his inter
est containing these provisions:
First-That If he remains contin-
uously in the service of the corpora
tion or in one or any of its subsidiary