Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-12-29
Andl-s. carnegie Makes Suggestion
for Solving Labor Problem.
STEEL KING WRITES NEW BOOK
Experience in Taking in Young
Partners is Recounted.
EXAMPLE OF STEEL CORPORATION
Reason for Giving Preference to Its
Employees is Explained.
PLAN Is SUCCESSFUL IN BOSTON
Prediction Made that Corporations
Conducted by Labor-Capitaiists
win outdIstance All Their
Competitors.
EXAMPLE OF STEEL CORPORATION
PLAN Is SUCCESSFUL IN BosTol

stock form opens lne oOOE 10 lne pAItlClpd-
ton of labor as shareholder in every branch
of business In this the writer believes,
lies the final and enduring 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 It's
full and free development as human society
advances"
These are striking statements found in an
article by Andrew Carnegie in the forth
coming January number of the Worlds
Work made public today. An editorial
note states that the article is taken from
Mr. Carnegie's new book, Problems of
Today and that It is published in the
magazine because OF the remarkable-it
might be called even sensatlonal-forecast
that he makes of the continued Improvement
in me position OF labor till proflt-sharing
does it's perfect work and the laborer and
the capitalist become the same man."
Mr.. Carnegie tells Of the beginning 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 busi-
ness. Great care, Mr.. Carnegie says. was
taken to admit workers OF the mechanical
department which had hitherto been neg
lected by employers. Speaking further on
of the combination of many steel works
into the one United States Steel corpora
tion 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
owr works. in competition with large
bodies of shareholders employing salaried
managers. we're certain TO distance their
corporate competitors, and did so. Nothing
can stand against the direct management
of owners"
Example of steel Cooperation.
Going ON no ,speRx OF tho rxpsriment OF
the United States steel corporation in in
teresting its officers and employees in Its
shares Mr. Carnegie says that every
corporation could weil afford to sell shares
20 its saving workmen giving preference In
repayment at cost 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
workman who necessarily buys the shares
without knowledge, and is asked to buy
them, not solely for his own advantage,
but for tho benefit OF the company as we'll
tic advantage OF both"
he writer points out that "Just the
mechanical world has changed and i'm
vanced from the slavery Of the laborer to
the day OF his absolute independence. and
now to this day, when he begins to take
lis proper place as the capitalist-partner
OF his employer. We may look forward
with hope to the day when II shall be the
rule OF the workman 10 be partner with
capital, the man OF affairs giving his busi-
ness experience the workingman In the
uill his mechanical skin. to the COM
l..
equally Interested in the success OF their
Joint efforts each Indispensable, so that
without their cooperation success would
be impossible"
Replying to the possible charge of being
, oversanguine. Mr. Carnegie declares him
self convinced that the huge combination.
and even the moderate corporation. has no
chance in competition with the partner
ship, which embraces the principal Off
csls and has adopted the system Of pay
ment by bonus or reward throughout It's
work. The latter may be relied upon, as
rule, TO earn handsome dividends in
times OF depression. during which the
former. conducted on the old plan. will
incur actual loss, and perhaps land in
financial emba rrassment.
Plan Successful In Boston.
BY way OF illustration, he cites the case
OF the Filene stores OF Boston. which he
says, has gone farthest OF all in the d.
rection OF making its employees sharehold.
ers.' The establishment. he says employs
100 to 800 men, the capital stock Is held
only by employees and is returned to the
corporation at its value. should any EN-.
ploye leave the service. Every share OF
stock belongs TO same one working IN
the stores THE most important advance. u
says Mr.. Carnegie, lis that all questions
are submitted 10 arbitration. not only com.
plants or disputes. but wages. scope oi
work and tenure of employment. More
than 100 cases of arbitration have ariser
and the result is that both managers anc
employees have been satisfied that this /,
the true plan. When an employe is dis
charged he has the right to appeal to ar
arbitration board composed OF fellow EN-
ployes OF different grades All wage dis
pntes have been satisfactorily settled
There is a profit sharing department. hav.
Ing nothing to do with wages. which ha,
been able 70 distribute varying amount,
each year"
lie goes on 10 describe the workings Of
the plan. remarkng incidentally that tn.
f1ene stores are not excelled. II equallet
IN making profits" He cites other exam.
pies OF profit sharing and Joint owner
ship. and then comes to his generali1ations
In the course Of which he says. amons
other things;
Whether thn communists ideal is 10 b,
finally reached upon earth. after man 4,
so changed that self-nterest. which 1,
now the handspring OF human action. viii
give place TO heavenly neighbor interest
cannot be known. The future has not
been revealed. He who says yes
and he who says no. are equal,
foolhardy. Neither knows. therefor,
neither should presume 4,
consider, much less 70 legtslate in theh
day, for future they can know nothing OF
The writer. however, believes one poln
(Continued ON second PaTs1