Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-03-09
How Employees Buy Stock.

The method is really a very simple
one. Employees subscribe for stock,
one or two shares apiece. The shares
cost $3.50, or less than the market
value. Each employe pays in monthly
installments, taken from his wages, and
he may have the payments made small
or large, as he likes, save that not more
than 25 per cent of his wages may be
so used in any month, and he may
not be more than three years in COM
pleting payment. Dividends at the
rate of per cent a year go to the
subscriber from the date of his first
payment. Interest at per cent is
charged on the deferred payments. In
other words, the corporation sells stock
below the market price, on credit, and
pays the holder 2 per cent year in
dividents more than he has to pay in
interest Here is a direct inducement
to the investment of savings. But this
is not all. Inducements are offered
the employe to complete payment for
his stock and to hold 1t. AS soon as
he has fully paid for it, the certificate
is issued in his name, and he is free
to dispose of it. But to make it worth
his while to hold it and at the same
ner in the companys service, the cor
poration says to him: If you hold your
stock, and beginning with January next
year you show it to the treasurer of
your company, and present a letter from
the proper official that during the pre-
ceding year you have been in the en-
ploy of the company. and have shown
a proper interest in its welfare and
Il Al-:-
for five years, we will give you, in adj
dition to the dividends paid you, a bon
us of five dollars per share for each
year.
During the second period of five years
we will pay you further yearly bonus
as q reward for your continuous faith
ful SERVICE" The amount of the sec
ond bonus can not now be fixed, but it
will doubtless be larger than the first
one. Ample provision is made for the
protection of subscribers who from one
cause or another are unable to complete
payment Subscribers who discontinue
payments get their money back and
keep the difference between the per
cent dividends and the 8 per cent inter-
est. In the case of subscribers who die
or are disabled while faithfully serving
the corporation, after having paid for
their stock, the five dollars per share
yearly bonus is not lost, but is paid
over to them or to their estates.
1t would be worth the While of any
reader of the Review of Reviews to sit
down and figure out the profits of a roll
ling mill worker who subscribed for
say two shares of stock and undertook
to pay for them in one year The Shares
would cost him s165. His monthly pay
ments would be $13.75. Five per cent
interest on these deferred payments
would be about s3.75. AT the end of the
year he would own his stock outright
and get the $14 in dividends, or 5000
over the interest. If he remained in the
service of the company for five years
he would in that period draw in divl-
dends $66.25, and $50 in yearly bonuses
of $5 a share. His total income, $116.2o.
And he would then have, as his own,
free of all charges, an investment
bringing him perpetually $14 year.
and at least $24 a year as long as he re-
maned in the service of the Steel COR
poration.-From The Steel Corporation
Points the Way by Waiter Wellman.
in the American Monthly Review OF
Reviews for March.