The San Francisco call., 1903-01-10
PROFIT SHARING.
of their high

- KOFI1 sharlng among employers ana eInplOyeS
is not an unttied experiment in the United
States. In some cases it has failed, while in
others it has had a fair measure of Neither
the the failures have been sufficient thus
far to demonstrate conclusively whether it can
be looked to a final solution OF the problems of
labor and capital. Still that large number OF people
look to it with hope and expectancy is demonstrated
by the increasing number of attempts to put it into
operation and by the popular interest taken in every
notable venture in that direction.
This year experiment larger scale than
ever before undertaken is to be tried by the United
States Steel Corporation. An elaborate scheme OF
profit sharing with the employees of the great trust
has been devised and published The employees are
to be divided into various classes corresponding to
the gradations in their salaries wages Each
man in proportion TO his salary is to be permitted
to subscribe for certain amount OF stock at fixed
price per share. Payments for the shares to be
made in monthly installments in such amounts as the
subscriber may desire, but the total amount must be
paid within three years. The amount of stock thus
Offered this year $4,000 shares and it is announced
that if the plan prove acceptable a similar number
Of shares will be offered similar terms in January
of each year hereafter.
feature OF the plan over which there has been
some controversy is thus stated in the official an
nouncement: Dividends on the stock will go to
the subscriber from the date when he commences
to make payments. AS the stock has been
paid for will be issued in the of the original
subscriber and he sell it any time he chooses
but inducement for him to keep it and remain
an employe OF the corporation the following offer
is made: If he will not sell or part with the stock
but will keep it, and in January of each year. for
five years. commencing with January, 1908, will ex-
hbit the certificate to the treasurer of his company
together with letter from proper official to the
effect that he has been continuously in the employ
OF the corporation, and has shown proper interest
in its welfare and progress he will during each OF
such five years receive checks at the rate Of S. share
per year This is equivalent extra dividend on
the stock of 5 per cent in addition to the regular
per cent"
While on its face that clause of the offer seems
favorable to the employees taking the shares, it ap
pears good many OF them object to it. A Pittsburg
dispatch reports that interviews with leading
poyes of the Homestead plant show decided dis
inclination on the part Of the men to support the
plan The dispatch says The workmen claim that
only the department and general superintendents who
draw large salaries, will be able purchase enough
stock to make investment worth the while
Another objection is that stock will not be delivered
to the employees for five years and that if workman
leaves the services OF the corporation before that
time ne loses his stock. lhe obJectors assert that
the five years provision is virtually contract to
hold them in the conpany's service for that length
OF time. They claim, also, that it would destroy
their independence in OF dispute"
1t will be then that Se experiment is not going
to be tried under the best conditions in the world
1t starts in the face OF hostile sentiment already
formed. None the less it is we'll worth trying,
and it is to be hoped it be made profitable
to both the corporation and the employees that it will
lead the way to further profit sharing hereafter.