River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1908-12-31
SHAREHOLD|NG BY
LABOR BEST PLAN
ANDREW CARNEGIE'S ADVICE
AND PROPHECY.
EXTRACT FROM NEW BOOK
Joint-Stock Form of Business with
Employers and Employees Equally
Interested Is What He
Sees in Future.

New York, Dec. 28.-"In the future,
labor is to rise still higher. The joint
stock form opens the door to the par
ticipation of labor as shareholder in
every branch of business. In this, the
writer believes, lies the final and en-
during solution of the labor question.
Nothing can stand against the direct
management of owners. We are only
pioneers whose duty is to start the
movement, leaving to our successors
its full and free development as
human society advances"
These are striking statements found
in an article by Andrew Carnegie in
the January number of The Worlds
| Work. An editorial note states that
| the article is taken from Mr.. Car
negies new book Problems of To-
magazine because of the remarkable
it might be called even sensational
forecast that he makes of the con-
tinued Improvement in the position of
labor till profit-sharing does its perfect
work and the laborer and the capital
list become the same man."
Carnegie Company's Method.
Mr.. Carnegie tells of the beginnings
made by the Carnegie Steel Company
many years ago by making from time
to time forty-odd young partners, who
| paid for their interest in the business
by their notes, payable only out of the
profits of the business. Great care,
| Mr. Carnegie says, was taken to admit
workers of the mechanical department
which had hitherto been neglected by
employers.
Speaking further on of the combina-
ton Of many steel works into the one
United States Steel Corporation, he
says that the problem presented was
not altogether new, ''for individual and
corporate management have co-existed
since joint-stock companies were
formed. The former had undoubtedly
| great advantages over the latter. Able
men managing their own works, in
competition with large bodies of
shareholders employing salaried man
| ayers, were certain to distance their
| corporate competitors, and did So.
Nothing can stand against the direct
management of owners"
To the Corporations Advantage.
Going on to speak of the experiment
| of the United States Steel Corporation
in interesting it's officers and employees
in it's shares, Mr.. Carnegie says that
every corporation could well afford
to sell shares to it's saving workmen
| giving preference in repayment at cost
| as a first charge in case of disaster,
! just as present laws provide first for
| the mechanics lien and for homestead
exemption. This is due to the work
| ingman, who necessarily buys the
shares without knowledge, and is
asked to buy them, not solely for his
own advantage, but for the benefit Of
the company as well-the advantage
of both"
The writer points out that "just as
the mechanical world has changed and
improved, so the world of labor has
advanced from the slavery of the Ia
borer to the day of his absolute in
dependence and now to this day, when
he begins to take his proper place as
the capitalist-partner of his employer.
We may look forward with hope to
the day when it shall be the rule for
the workman to be partner with cap
ital, the man of affairs giving his bust
ness experience, the workingman In
the mill his mechanical skill, to the
company, both owners of the shares
and so far equally interested in the
success of their joint efforts, each in
dispensable, so that without their CO.
operation success would be impos-
sible."
Partnership Is Best Plan.
Replying to the possible charge of
being over-sanguine, Mr.. Carnegie de-
clares himself convinced that ''the
huge combination, and even the mod
crate corporation, has no chance in
competition with the partnership,
which embraces the principal officials
and has adopted the system of pay
ment by bonus or reward throughout
it's work. The latter may be relied
upon, as a rule, to earn handsome
dividends in times of depression, dur
ing which the former, conducted upon
the old plan, will incur actual loss,
and perhaps land in financial en-
barrassment. He continues:
"Co-partnership tends to bring a
realizing sense of the truth to both
labor and capital that their interests,
broadly considered are mutual; and as
far as the latter is considered it may
finally, in some cases, be all fur
nished by those engaged in the works,
which is the ideal that should be held
in view-the workman both capitalist
and worker, employe and employer.
"This, however, is not for our time.
We are only pioneers, whose duty is
to start the movement, leaving to our
successors its full and free develop
ment as human society advances. The
first company so owned will mark a
new era in the relations of labor and
| capital We may not have to wait
long for this experience, since it is
| in line with recent developments. The
| writer has no desire to embark again
| In business. But nothing would ap-
! peal to him so strongly as his ideal.
| He should like to address a body of
workmen, many thousands in number,
as all-fellow partners"
Permitted to Whistle in Church.
Harry P. Bosom OF Reading, as his