The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-12-25
Frederick p. OlcOtt Gave First
Presents to Employees.
Central Trust COmpany's Plan
Now National Custom.
PERKINS GOOD WORK
Solves Profit Sharing Plan for
Two Corporations.
Some Day WOrkmen May Own
Big Concerns.

New York. Dec. e5.-Not even in
years of great commercial and hnan-
cial activity has the disposition to cele-
brate the Christmas season by distribu-
tion among the employees Of banks and
industrial corporations OF bonuses
sometimes disguised under softer
name-been so general as has been the
case in this city this year.
In the larger way now Characters
tic Of these distributions this custom
was first established. SO far as financial
corporations are concerned. by the
Central Trust company OF this city
when IL was under the prcsidcu.y uf
the late Frederick +. Olcott That trust
instituticn was really the first OF the
trust companies to undertake reorgani-
zation o. bankrupted railroads and 10
organize underwriting syudlcates with
which the capital was TO be furnished
for large enterprises. That was in the
early eighties. Most of these undertake
ings were very prdftabic. they made it
possible for the Institution to pay divi-
dends sometimes at the rate OF "a hun
ored per cent II was Mr.. Olcotts
theory that tho prosperity which came
10 tins institution was In no small
measure due TO the energy and faith
fulness of the cmnlOyHes They SUP
plemented by executive and clerical
work some Of IL quite difficult. the con-
structive work planned hy Mr.. Dlcptt
and indorsed by the directors OF the
institution For this reason. Mr. OIL
colt advised that. as the Institution had
made great deal of money. IL should
return some portion Of these profits 70
the officers and employees. Precisely
what the first great distribution which
il was decided to make ar Christmas
amounted to has always been matter.
Of conjecture II was a half-kept Sc
cret. one reDort-which seems TO nave
been fairly aecuratc-statea that Nr.
Oicott himself received bonus equiNa-
lent to MS years salary, then said TO
have been 0.00O. And Il was therefore
presumed that all of the executive ON
GERS and employees received q like pro
portionate amount.
The moral eject Of this distribution
was verx- perceptlhle- A strong esprit de
were very proud oi the institution ana
OF its successes.
The Custom Spreads.
Speedily she custom was adopted %
other financial institutions. II has az
ways been the understanding that j. H.
Morgan & CO. distribute at Christmas.
or at New Years, bonuses or rewards
of merit. as they are called TO all OF
the employees. one year tne commonly
accepted reEort fixed the amount thus
distributed at 100 Per cent or. in other
words. every employee received gitt
in a lump equal 10 his yearly salary
A Distribution OF that lund IN the mouse
OF J. p Morgan & CO., II IS sonletlitio
thought. is explained not merely ny
the provernial generosity Of Mr.. Nor
gan and the kindly personal interest ne
takes in all his employees, but also py
the fact that it has ever been the pol
lev OF that partnership not 20 admit
any employees into partnership reia-
tons
Recently some Of the larger financial
institutions have perfected pensions.
and to some extent. proht-sharing
methods When Mr.. James Stillman
created out of one Of the smaller banks
in New York the great institution
which is now OF International conse-
ouence. he included among his other
plans the perfecting Of an adequate
pension system Some difficulties have
been met with the practical working
of this plan
The Problem Solved.
It is now generally recognized in in
dustriai circles that Mr. George ".
Perkins was the first to work out
complete solution of the problems
stated in terms OF proft-sharing and
pensfoning soon after the orEaniza-
tion of the United States steel corpo-
ration almost coincidently with the
organization OF the international ttar-
vester company. with both Of which
Nfr. Perkins was promi-
nentlv associated. he devoted all the
spare time he could give to this prob
lem.
To provide a pension fund was not so
difficult matter as 20 establish upon
a rational basis a profit-sharing sys-
TEN
Profit sharing. I'm Mr.. Perkins view.
involved the appropriation BY the wage
Garner Of a certain part OF his wages
for the purpose Of buying the stock OF
the corporation How in thoroughly
scientific manner TO aid the working
man in this endeavor WAS. perhaps. as
difficult "A problem as Mr.. Perkins ever
undertook - solve. II was az last
worked out and has been accepted by
the corpora tions and so generally ac-
cepted by the employees as now 10 jus
tify the belief that in the course OF
time the men who work for these cor
porations viii be the owners. possibly.
Of a majority Of the stock. and owners
because they have earned through their
employment the means by which they
may become in this way true capital
lists
In this city profit sharing and pen
sion methods are being more and more
The proft-sharlnR feature IS.
in great measure or as far as practi-
cable. based upon the system origi-
mated BY Mr.. Perkins.