Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1903-05-07
Installed as President of
Iron and Steel In
stitute.
CEREMONY IN LONDON
Takes Advantage of OC-
CaSion to Make Not
able Speech.

London, May ANDREW Carnegie
the Iron and Steel Institute here to-
day. In his inaugural address he
said:
Mr.. Carnegie, after expressing his
thanks for the honor conferred upon
him, paid a high tribute to the MEM
DRY of the late Abram S. Hewitt, of
New York. He then branched off into
lengthy history of the profit-shar-
ing policy adopted by the company
of which Mr.. Carnegie was the head,
saying in part:
speaking from experiences. we had
not gone very far in manufacturing
before discovering that perfect man
agement in every department was
needed, and that this depended upon
the men in charge. Thus began the
practice of interesting the young
geniuses around us. as they proved
their ability to achieve unusual re-
suits. the source of big dividends.
These received small percentages in
the firm, which was credited to them
at the actual cash invested, no charge
being made for good will Upon this
they were charged interest, and the
surplus earned each year beyond this
was credited to their account. BY
the terms of the agreement three
quarters of their colleagues had the
right to cancel it, paying the party
the sums then to his credit. This pro-
N-iGi nHn -
treme cases of incompatibility of tenn
per. or if the recipient should prove
incapable of development. or of en-
during prosperity. At death the in
terest reverted to the firm at its book
value. The young men were not per-
mitted to assume any financial obli-
cation. and not until their share was
fully paid by the profits and there
was no further liability upon it, was
il transferred to them. This policy
resulted in making some forty odd
young partners. a number which was
increased at the beginning of each
year. BY this plan they were rapidly
paying for their interests and prom
iSng to become the milliOnaireS of
the then seemingly somewhat distant
future, which, however. proved not so
very distant. They are now rich men.
You will not fail, however, to note
that the plan kept them all in excel
lent training, as poor men still living
upon their salaries, millionaires in
posse. indeed, but not in esse-quite a
difference, for millionaires seem liza
BILE to develop when still very young
so many hitherto unsuspected weak
spots in their constitutions requiring
careful nursing, and many absences
and short hours, and a dozen other
impediments to hard, continuous eX
ertion that it does not seem good for
their robust health that they should
be unduly burdened before reaching
middle age. The zest of the chase is
over too soon. 1t will be found the
exception when millionaire en-
ploye strains himself unduly by over
eXertion to some leisure for self-im-
provement. When man has achieved
competence. new duties to his fam
lily and to himself arise. Money is
properly only the means to an end.
The Plan of Reward.
This plan of reward is probably
bound to prevail to greater or less
degree in manufacturing concerns,
and the sooner the better, for the
greater number OF the workers capi-
tai can compensate, and in one sense
reward, by sharing it's gains, the more
harmonious and therefore more prof
liable for both must the relationship
become.
The great secret of success in bus
mess of all kinds, and especially in
manufacturing, where a small saving
in each process means fortune. is
liberal division of profits among the
men who help to make them. and the
wider distribution the better. There
lie latent, unsuspected powers in will
ing men around us which only need
appreciation and development to pro-
duce surprising results. Money re-
wards alone will not, however, insure
these, for to the most sensitive and
ambitious natures there must be the
note of sympathy, appreciation,
friendship. Genius is sensitive in all
it's forms. and it is unusual, not ordi-
nary, ability, that tells even in prac-
teal affairs. You must capture and
keep the heart of the original and
supremely able man before his brain
can do its best. Indeed this law has
no limits. Even the mere laborer be-