The San Francisco call., 1903-01-01
New System
Ready for
Trial.
Dividends in
Store for
TOiIerS.
Surplus to Be
DiVidedAn=
nuaHy.

NEW YORK, Dec. S1.-In a double cir
cular, one to the stockholders and the
other to the officers and employees, the
United States Steel Corporation announces
its intention to inaugurate a system
whereby the humblest workman on its
rolls may. if he desire, become a perma-
rent stockholder and share In the profits
Of the corporation. The scheme is the
result Of months of preparation by the
finance committee of the corporation and
the circulars are signed by George w.
Perkins. chairman. The plan is said to
have originated with 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 itself to the man with
pick and shovel working for one Of the
subsidiary companies
The circular goes on to say that at this
time there are about 5000 stockholders.
who. 1t Is believed. would feel a greater
sense of security in the corporations
earning power if they knew that the o.
ficers and managers generally were will
ing to enter into a contract by which a
part of their compensation for services
rendered should be paid only after the
realization Of SSO,OOOOOO Of profits. This
represents interest on bonds dividends
on stocks and reserve for sinking funds
DETAILS OF THE DIVISION.
The plan inviting officers and employees
- participate Is divided into two parts, =
Part one prescribes that from the earn
irgs OF the corporation during the year
1902 there will have been set aside at
least 100000 and as much more as is
needed for the purchase Of at least g, ,O00
shares Of preferred stock. which will be
offered as follows to employees of the cor
pcration and constituent companies:
At present the corporation and subsid
iary companies employ about $4,000 men.
whom 1t is proposed to divide into these
six classes; Glass A will include all those
who receive salaries of $4,000 a year or
over; class B will include all those who
receive salaries OF from $4,000 to $4,000
year; class c will include all those who
receive salaries OF from 5000 to $4,000 a
year; class d will include all those who
receive salaries of from $500 to 5000 a
year; class will include all those who
receive salaries of from $500 to $500 a
year; class F will include all those who
receive salaries of $500 year or less.
DISTRIBUTION OF PROFITS.
The preferred stock will be offered to
any employe during January at $s2 80 per
share tits closing price to-day was sS5 S7l.).
Employees may subscribe for an amount
of stock not exceeding the sum represent
ed by certain percentage of their an
nGal salaries as shown in this table.
Glass b, per cent; class c, 10 per cent;
class ID, p per cent; class E, Is per cent;
class F. 20 per cent.
In part two of the plan it is explained
that the corporation has been and is now
making changes in the salaries Of men
occupying Official or semi-official posi-
tions and the directors have approved
these recommendations of the finance
committee:
Whenever ssb,OOO.OOO and less than SEQ
100000 is earned during 1903 one per cent
shell be set aside; whenever S90.O0060l
and less than S10O. .O00, 600 is earned during
1903 1.2 per cent shall be set aside; when
ever SlOO,OO0.O 900 and less than S11OO0o.00O IS
earned during 1903. IA per cent shall be
set aside: whenever S11O.OOo,O0O and less
than s12OO0O00O is earned during 1903. 1S
per cent shall be set aside: whenever
$3.50 600 and less than S14O,000OO8 is
earned during 1908, per cent shall be set
aside; whenever $40, 100000 and less than
Si50,OOO, 600 is earned during 1903. 2k per
cent shall be set aside: whenever $4,000
OOo and less than $50 100000 is earned dur
ing 1908. 2ls per cent shall be set aside.
BOTH CASH AND STOCK.
The question of what constitutes profits
is 10 be determined by the finance com
mittee which. il is stated. will have no
interest in the profit-sharing plan. II
$50 100000 is earned in the coming year
100000 will be set aside. One-half to be
distributed in cash quarterly. the other
half to be reserved until the end of the
wear and invested in preferred stock the
stock thus purchased to be divided one
half TO employees entitled thereto. the 9TH
er half to remain with the treasurer OF
the corporation. Each shareholder is to
receive a certificate for his interest con-
tanning these provisions:
First-That If he remain continuously in
the service of the corporation or OF one or
another of its subsidiary companies for
fve years the stock shall be delivered to
him. and he may do as ne likes with IT,
! second-That II he die or become totally
/ and permanently disabled while in the
employ of the corporation or Of one or
another of its subsidiary companies the
stock shall be delivered to his estate or
TO him.
Third-That he may draw the dividends
declared on the stock while it is held for
his account and he remain in the employ
of the corporation or Of one or another
of its subsidiary companies.