Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1903-05-07
Steel King Formally 1nstahvv
in Presence of Large As
semblage in London.
TRIBUTE TO HEWITT
Great American Manufacturer in In
ausuraI Address Tells of Success of
Profit Sharing Policy in Development
(. of Great Manufacturing Interests.

London, May I'm the presence of
one of the largest assemblages ever
gathered at the annual meeting of the
Iron and Steel institute, Andrew Car
negie, the steel magnate, was today
formally installed as president of the
institute. After being formally in
stalled, President Carnegie, who re-
marked that he was the first executive
of the institute who was not British
subject, presented Sir James Kitson,
the former president, with the Besse-
mer gold medal for 1908. President
Carnegie subsequently delivered his
inaugural address, which was listened
to with great interest.
Profit Sharing Policy.
Mr.. Carnegie after expressing his
thanks for the honor conferred upon
him paid high tribute to the memory
of the late Abram S. Hewitt of New
York. He then branched off into a
lengthy history for the profit sharing
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 ge-
niuses around us, as they proved their
ability to achieve unusual results, the
source of big dividends. These re-
reived small percentages in the firm,
which were 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 sum
then to his credit. This provision was
meant to meet possible extreme cases
of incompatibility of temper, or if the
recipient should prove incapable of de.
yelopment of enduring prosperity. AT
death the interest reverted to the firm
at it's book value. The young men
were not permitted to assume any
financial obligations, and not until
their share was fully paid by the prof
its and there was no further liability
",
This policy resulted in making some
40 odd young men partners, number
(which was increased at the beginning
of each year.
Valuable Training.
BY this plan they are rapidly paying
for their interests and promising to be-
come the millionaires of the then
1ie.fa nj f,1t,,ra. how.
ever, proved not so very distant. They
are now rich men. You will not fail to
note however, that the plan kept them
all in excellent training, as poor men
still living upon their salaries, million
aires in posse, indeed, but not in ease
quite a difference, for millionaires
young, so many hitherto unsupported
weak spots in their constitutions, re
quiring careful nursing, and any alb
sences or short hours, and a dozen
other impediments to hard continuous
exertion that it does not seem good
for their robust health, that they
should be unduly burdened before
reaching middle age. The zest of the
the exception when millionairs EN-
ploye strains himself unduly by over
eXertion, to some leisure for self i'm
provement. When aman has achieved
competence, new duties to his family
and himself arise. Money is properS
only the means to an end.
This plan of reward is probabl,
bound to prevail at greater or less de
gree in manufacturing concerns, ant
the sooner the better, for the create
number of workers capital can CON
pensate, and in one sense reward b,
sharing it's gains, the more harmoniou
and therefore more profitable for bot
must the leationship become.
Heart Service Counts.
The great secret of success in bust
ness of all kinds, and especially il
manufacturing, where a small saving
In each process means fortune is {
liberal division of profits among tn,
men who help to make them, and tn,
wider distribution the better. There
lie latent unsupported powers in viii
ing men around lis which only neet
appreciation and development to pro
duce surprising results. Money re
wards alone will not. however, insure
these, for to the most sensitive ant
ambitious natures there must be th
note of sympathy, appreciation, friend
ship. Genius is sensitive in all it
forms, and it is unusual, not ordinar,
ability that tells even in practical al
fairs. You must capture and keel
the heart of the original and supreme
ly able man before his brain can d.
its best. Indeed this law has no lin
its. Even the mere laborer become
more efficient as regard for his en-
ployer grows. Hand service, or hea
service, it is heart service that counts
One of the chief sources of whateve
success may have attended the Carnt
gle steel Co. was undoubtedly its po