The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-01-01
To Have Equal Opportunity with the
High SaIaried Man to Get n Part OF
the Surplus Earnings.
PREFERRED STOCK AT $3.50
WILL BE OFFERED TO SIX CLASSES
OF CORPoRATIoN's EMPLOYEES.
working Force Numbers About 1GS,-
Years Before Securing stock.

NEW YORK, Dec. si-In a double circu-
lar. one TO the stockholders and the other
TO the officers and employees. the United
States Steel Corporation announces its in
tention to install a system whereby the
humblest workman on its rolls may, If he
desires. become a permanent stOckholder
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 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 5000
stockholders VINO, it is believed. would
feel a greater sense of security in the
corporations earning power if they knew
that officers and managers generally were
willing to enter into a contract by which
part of their compensation for services rem
dered will be paid only after the re-
represents interest on bonds. dividends on
stocks and reserve for sinking funds.
The plan inviting officers and employees
TO participate is divided into two parts
Part one prescribes that from the earn
iugs OF the corporation during the year
1902 there win have been set aside at
least s2.000.OOo. and as much more as is
reeded. for the purchase of at least 5000
shares of preferred stock, which will be Of
fered as follows to employees of the cor
poration and constituent companies:
SIX CLASSES.
At present the corporation and subsidiary
companies employ about 16s. 600 men, whom
IT is proposed to divide into these six
classes:
Glass A will include all those who re-
ceive salaries of $50 600 a year or over.
Glass will include all those who receive
salaries of from $4,000 to $4,000 year.
Class will include all those who receive
salaries of from 5000 To $4,000 year.
Class ID will include all those who receive
salaries of from $2.500 to 5000 a year.
Class will include all those who receive
salaries of from $500 to s., so a year.
Class + 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.
Uts closing price to-day was SS5.S71b.)
Employees subscribe for an amount
OF stock not exceeding the sum represented
by certain percentage of their annual
earnings. shown in this table: Class b,
per cent; Class G, 10 per cent; Glass ID,
Il per cent: Glass Z, 10 per cent. Glass L,
20 per cent
WHAT SHALL BE SET ASIDE.
In part two of the plan it is explained
that the corporation is now making
changes In the salaries of men occupying
official semioficial positions and the
directors have approved these recon-
mendations of the finance committee
Whenever sS0O00.OoO and less than s9O.-
100000 IS earned during 1903, per cent. shall
be set aside.
Whenever sso.Oooooo and less than $780,
ooo.eoo is earned during 1908. l.2 per cent.
Whenever 10000, 900 and less than s11o.
100000 is earned during 1903, IA per cent.
shall be set aside
Whenever Si1000o,O00 and less than $40 =
100000 is earned during 1903. 1.6 per cent
shall be set aside
Whenever si20,O0o0O0 or less than $3.50.
100000 is earned during 1903. is per cent.
Whenever slso.0Oo.OOo and less than s4o.-
100000 is earned during f903 per cent.
Whenever s140O00.0O0 and less than sI50
oooeS is earned during 1865. "a per cent.
shall be set aside.
Whenever sl5O.OOO.OOo and less than $780,
10000 is earned during 193, 2la per cent.
shall be set aside.
WHAT CONSTITUTES PROFITS.
The question of what constitutes profits
Is TO be determined entirely by the finance
committee. which. Ii is said. will have no
interest in the profit taking. II $4,000 000
is earned i'm the coming year $4,000 will be
set aside one-half TO be distributed In cash
quarterly. the other half to be reserved
until the end of the year. invested I'm pre-
ferred stock: the stock thus purchased 10
be divided one-half 10 employees entitled
thereto. the other half to remain with the
. treasurer of the corporation. Each share
holder is 10 receive certificate for his in
terest containing these provisions.
First-That IL he remains continuously
in the service of tn corporation or one OF
another of its subsidiary companies fol-
five years the stock shall be delivered to
him and he may do as he likes with IT,
Second-That IL he dies or becomes totally
and permanently disabled while in the en-
ploy OF the corporation or one or another
OF its subsidiary companies the stock will
be delivered TO his estate TO him.
Third-That he can draw the dividends
declared on the stock while il is held fol
bis account and he remains in the EN-.
ploy OF the corporation or one or anothe,
OF rs subsidiary companies.
Fourth-That if without previous consent
voluntarily he shall have quilted the serv-
Ice of the corporation or OF its subsidiary
companies he shall forfeit ali right TO this
stock and I'm such case 1t will be held IN
a fund which at the end OF i've years will
be divided among such employees as shal
have complied with all the conditions
Thus 25 per cent. of all the money Sc,
aside In this pront-sharing plan viii bs
held for five years and will be given onl,
10 those who. at the end OF that period
will have been IN the employment OF IN.
corporation or one or another OF It's sub
sidiary companies from and since Jan.
ls0. High officials OF the steel corpora.