The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1903-01-09
STEEL TRUST ADOPTS
PROFIT SHARING
All Employees Of the Corpora
ton Will Be Permitted to
Subscribe for Stock.
DETAILS OF THE SCHEME
Result of Months Of Labor by the
Trusts Finance Committee-Em-
ployes to Be Divided Into
Glasses.

New York, Jan. I'm a double cir
cular, n to the stockholders, and the
other to the officers and employees, the
United Steel corporation it's
intention to inaugurate a system
whereby the humblest workman on it's
manent stockholder and share in the
profits of the corporation.
The scheme is the result of months
of preparation by the finance commit
tee Of the corporation, and the circu-
lars are signed by Geo. w. Perkins,
chairman. The plan is. said to have
originated with Mr.. Perkins. The cir
cular 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
the pick and shovel working for one
Of the subsidiary companies"
The circular goes on to say that at
this time there are about 5000 stock
holders, who, it is believed, would feel
a greater sense Of security in the cor
poration's earning power if they knew
that officers and managers generally
were willing to enter into a contract by
which part Of their compensation for
services rendered shall be paid only
after the realization Of $50, 200 900 of
profits. This represents interests on
bonds, dividends on stocks and reserve
for sinking funds.
Divided Into Two Parts.
The plan inviting officers and en-
ployes to participate is divided into two
parts. Part one describes that from the
earnings Of the corporation during the
year 1902 there will have been set aside
at least $4,000, 900, and as much more as
is needed, for the purchase of at least
%, 600 shares of preferred stock, which
will be offered as follows to employees
of the corporation and constituent COM
panies.
At present the corporation and sub
sidiary companies employ about 16S, 900
men, whom it is proposed to divide into
these six classes:
Glass A will include all those who re-
ceive salaries of $4,000 a year or over.
ce GIss sa} "a Siil Of in sis,sss to a5l So tA 80 a y YEAR. re-
salaries from s5,ose to sic, ese a year.
Glass d will include all those who re-
ceive salaries Of from $500 to $1,000 a
Glass E will include all those who re-
ceive salaries of from $500 to $500 a year.
Sld0S l. VAL lllCluoS III l1lOSC WHO It.
ceive salries of $500 a year or less.
The preferred stock will be offered to
n employe during January at $3.50
per share; it's price is $85.S7k.
Amount Employees Can Subscribe For.
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: Class B, 8 per cent; Glass c, 10
per cent; Glass D, u per cent; Glass E,
Is per cent; Glass T, 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 semiofficial
positions and the directors have APP
proved these recommendations of the
finance committee.
OF all over $50, 900, 900 n less than
$50, 600, 900 earned during 1903, 1 per cent
shall be set aside.
OF all over $50, 0e0, 600 and less than
500, 600, 600 earned during 1903, 1.2 per
cent shall be set aside.
Of all over $109, 600, 600 and less than
$11O, 600, 600 earned during 1903, IA per
cent shall be set aside.
OF all over s11e, 600, 900 and less than
$120, 600, 600 earned during the year 1903,
lie. per cent shall be set aside.
Of all over S12e, 900, zoo and less than
SoA 1iSo oo14416 LOOO, Lee pS1
cent shall be set aside.
OF all over $13o,oso,oo and less than
$40, 600, 600 earned during 1903, 2 per
cent shall be set aside.
Of all ove $14e, oee, 900 and less than
$3.50, oe0, eco earned during the year 1903,
2A per cent shall be set aside.
OF all owe $3.50. 0ee,0 geo and less than
$3.50, 00o, coo armed during 1903, az per
cent shall be set aside.
The question Of what constitutes
profits is to be determined entirely by
the finance committee, who, it is stated,
will have no interest in the profit shar-
ing plan.
Shareholders Certificates,
Each shareholder is to receive a GER
tifcate for his interest, containing
these provisions:
/. That II he remains continuously in
the service of the corporation or of one
or another Of its subsidiary companies
for five years, the stock shall be delivered
to him, and he may do as he likes with it..
2. That II he dies or becomes totally and
permanently disabled while in the employ
of the corporation or of one or another
of its subsidiary companies, the stock will
be delivered to its estate or to him.
3. That he can draw the dividends de-
clared on the stock while it is held for his
account and remains in the employ Of the
corporation or OF one or another of its
subsidiary companies.
4. That If without previous consent VOL
UNFAIRLY he shall a quilted the service
of the corporation or of its subsidiary
companies, he shall forfeit all right to this
stock, and in such case 1t. will be held in
a fund which at the end of five years will
be divided among such employees as shall
have complied with ali the conditions.
Officials Of the steel corporation de-
clined to discuss the reported ap-
preaching retirement of President