The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-01-01
PLAN TO SHARE
STEEL PROFITS
Circular Sent Out by United
States Steel Corporation.
EMPLOYEES CAN GET STOCK
NEARLY 10000 MEN IN THE
EMPLOY OF THE COMPANY.


nounces its intention to inaugurate a
man of it's rolls may, If he desires, be-
come a permanent stakeholder 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 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 $1,000 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
We're willing TO enter into a contract
by which part of their compensation
for services rendered shall be paid
only after the realization of $4,000. 600
of profits. This represents interest on
bonds, dividends on stocks and reserve
| for sinking funds.
Two Parts to the Plan.
The plan inviting officers and en-
plOyes to participate is divided into
two parts Part prescribes that from
the earnings of the corporation during
the year 1902 there will have been set
aside at least $2,000.0G0 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 corporation and
constituent companies:
At present the corporation and sub
sidiary companies employ about $4,000
men, whom it is proposed TO divide
into these six classes:
Glass A will include all those who
receive salaries Of $4,000 a year or
over.
Glass B will include all those who
receive salaries of from $4,000 to $4,000
Class c viii include all those who
receive salaries Of from $4,000 to $4,000
year.
Glass D win include all those who
receive salaries of from $500 to $1,000
Class f will include all those who
receive salaries of from $500 to $500 a
year
Glass F win include all those who
receive salaries of $500 year or less.
Cost to Employees.
The preferred stock will be offered to
any emplOye during January at $3.50
per share. Its closing price today was
SS5.8715)
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: class c, 10 per
cent: class D. L per cent; class h, 10
per cent: class f. 20 per cent.
In part two of the plan 1t is eX-
planned that the corporation has been
and is now making changes in the sal
aries Of men. occupying official or semi
official positions, and the directors
have approved these recommends tons
of the finance committee:
Whenever $50. O00, 600 and less than
800 000, 900 is earned in 1908, l per cent
shall be set aside.
Whenever S90,OOO,OO0 and less than
500. 10000 is earned during 1903, IL per
cent shall be set aside.
Whenever $1O0. 100000 and less than
S11O.OOOO00 is earned during 1903, IA per
cent shall be set aside.
Whenever $4,000, 900 and less than
$1,000 600 is earned during 1908, 1.6 per
cent shall be set aside.
Whenever $3.50, COO, 600 and less than
$40. OOO, 600 is earned during 1903, per
cent shall be set aside.
Whenever $40, 900, coo and less than
$50, coo is earned during 1903, 2-25
per cent shall be set aside.
Whenever $50. 100000 and less than
$3.50. 900. 900 is earned during 1908. 2.5 per
cent shall be set aside.
Certificates to Be Issued.
+ The question of what constitutes
profits is to be determined entirely by
the finance committee. Who. it is stat
ed. will have no interest in the profit
sharing plan. If sS0.O0OOO0 is earned
in the coming year, $500 000 will be set
aside. one-half to be distributed in
cash quarterly, the other half to be
reserved until the end of the year. and
invested IN preferred stock, the stock
thus purchased to be divided, one-half
to employees entitled thereto, the other
half to remain with the treasurer of
the corporation. Each shareholders is
to receive a certificate for his interest
containing these provisions:
First-That if he remains continuous
ly in the service Of the corporation or
Of enc or another of its subsidiary
companies for I'VE years the stock shall
be delivered TO him and he may do as
be likes with it.
SecOnd-That if he dies or becomes
totally and permanently disabled while
in the employ Of the corporation. or OF
one or another of its subsidiary COM
panies, the stock viii be delivered to
his estate or to him.
Third-That he can draw the divi-
bends declared on the stock while II
is held for his account and he remains
in the employ of the corpora tion. OF
of one or another of its subsidiary
F, companies.
Fourth-That if without previous
consent voluntarily he shall have quiz
ted the service of the corporation or
Of its subsidiary companies. he shall
forfeit all right TO this stock, and in
such case il win be held in a fund,
which. at the end of five years. Will
be divided among such employees as
shaE have complied with all the con-
ditions.
Thus % per cent of all the money
set aside in this profit sharing plan
Will be held for five years and Will be
given to such only as at the end OF
that period shall be in the employ of
the corporation, or one or another OF
its subsidiary companies, from and
since Jan. I. 1903.
High officials of the steel corporation
declined today TO discuss the reported
sFproachipg retirement OF President
Schwab.