The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-01-01
STEEL TRUST PLANS
ITO TAKE IN ITS MEN
They May Buy Shares and
Become Stockholders
AN ELABORATE SCHEME
The Amount of Stock for Which Employees
May Subscribs is Limited by Certain
Conditions. Details Of Pro-
fiji Sharing Plan.
(By the Associated Press }


(By the Associated Press.)
New York, December 31.-In a double,
circular. one to the stockholders and the
other to the officers and employees, the
LATED States Steel Corporation an
nounces it's intention to inaugurate a
system whereby the humblest on it's roll
may, if he desires, become permanent
stockholder and share in teh profits of
the corporation. The scheme is the re-
suit 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 itself, to the man with
pick and shovel working for one of the
subsidiary companies"
The circular goes on to say that at
this time, there are about $4,000 stock
holders, who, it is believed, would feel
greater sense of the security in the cor
power IL tHey hucW
that officers and management general
ly were willing to enter into a contract
by which part of their compensation for
services rendered shall be only after the
realization of $4,000, 900 of profits. This
represents interest on bonds, dividends
on stocks and reserve for sinking funds.
The invitation to officers and employees
to participate is divided into two parts.
Part one prescribes that from the earn
ings of the corporation during the year
1902 there will have been set aside at
least 100000 and as much more as is
needed for the purchase of at least 2os-.
600 shares of preferred stock, which will
be offered as follows to employees of the
corporation and constituent companies:
At present the corporation and subsi-
diary companies employ about 10000
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 $20,-
900 year.
Glass &C" will include all those who
receive salaries Of from $1,000 to $4,000
a year.
Glass "D' will include all those who
receive salaries of from 81, 500 to $1,000 a
year.
Glass "E" will include all those who
receive salaries of from $500 to $4,000 a
year.
Glass ''F' will include all those who
receive salaries of $500 year or less.
The preferred stock will be offered to
any employe during January at $3.50 per
share Gts closing price today was
$S5.S71a).
Employees can subscribe for an amount
of stock not exceeding the sum repre-
sented by a certain percentage of their
annual salaries as shown in this table:
Glass "B'' per cent; class CO., 10
per cent; class 3D., u per cent; class
''E", Is per cent; class "F'', 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 semi official posi-
tions, and the directors have approved
these recommendations of the finance
committee:
Whenever S0,000,000 and less than $780,
100000 is earned during 1908, / per cent
shall, be set aside; whenever $50, 900, 900
and less than $1O0,00000O is earned dur
ing 19O9 IL per cent shall be set aside.
Whenecer s1OOOOO,O0O and less than
$11O,Oo0,000 is earned during 1908, IA per
cent shall be set aside
Whenever $110,O00,000 and less than
$12O,O00,O0O is earned during 1903, 16 per
cent shall be set aside.
Whenever $120, 900, 900 and less than
$130,000,O00 is earned during 1903, is per
cent. shall be set aside.
Whenever s1S0, 100000 and less than
$i40,O00,000 is earned during 1908, per
cent. shall be set aside.
Whenever s14O,O00,000 and less than
$150,000.000 is earned during 1903, "a per
cent shall be set aside.
Whenever $3.50, 900 and less than
$16O,000,000 is earned during 1908, 212 per
cent shall be set aside.
The question CT what constitutes profits
is to be deterined entirely by the finance
committee, who, it is stated, will have
no interest in the profit sharing plan. II
$80,000,000 is earned in the coming year
$500, 900 will be set aside, one-half to be
distributed in cash quarterly, the other
half to be reserved until the end of the
year. 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 shareholder is
to receive a certificate for his interest
containing these provisions:
l. That If 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 de-
livered to him and he may do as he likes
with it.
g That if he dies or becomes totally
and permanently disabled while in the