The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1916-02-17


New York, Feb. 17-Paying bonuses
of $1,000. geo or $5,ooO,OoO a year in
addition to prineely salaries to assist
ants who increase profits or output
Schwab told the Aldine club yester-
day.
t<BPains are a bigger asset than
money" he said to the 500 eook and
magazine publishers and literary peo-
pie present. fHThey are essential To the
success of any business and should be
paid for by the corporations who
profit by them
PAID one Assistant a Million.
Z Mr.. Schwab said that he had paid
Vice President Arch johnson of the
Bethlehem Steel Co. $60e, ooo in addi-
ton to his salary last year, and that
another assistant had received more
than 100000 as his share of the
profits he had produced
The writer's and publishers all ap-
plauded Mr.. Schwab's sentiments
when he talked of brains being paid
for al increased rates, and not q few
looked as though they would like to
get a chance to increase their in
comes by receiving bonuses
Mr.. Schwah spoke without notes,
easily and in conversational tones. He
was received with great enthusiasm by
his auditors. who. hunched their
chairs closer to hear all he might
say. To alIay the fears of the timid,
Mr., Sehwab told them he had a plant
at Bethlehem that was az least so per
cent. greater than the famous Hupp
works at Essen, Germany.
pr. Albert Shaw introduced Mr..
Schwab, who had been induced by Dr.
o. S. Marden to make short ad-
dress to the club.
st am not going to tell you about
my business he said, E'but I am going
to tell you about the steel business in
general"
Growth of the Industry.
He said that in 1897 he personally
worked over the first steel giFdeF that
was put into a skYseraper. Since that
time, he said, the steel business in the
United States had gone forward in
leaps and bounds. England and Ger
many, he declared. had stood still in
the production of steel, while the out
put of the United States during the
last year was 24,Qo0,000 tons.
1T expect to see this output increas-
ed to more than 100000 tons ire
1885,, Mr.. Schwab said. I'm 1901
I built the first steel railroad car and
now more than 5000 oe tons of steel
are going into the construction OF
these cars. =, F
"I am a believer in profit sharing
with department heads and with
forts add to the profits of an enter
prise either by economies or by IN
creased output. It has been the graf
ihGation of my life that I have been
able to make money for young men
by bringing out of them their latent
possibilities, If an assistant OF an
employe can by his own efforts add
to the prosperity of a concern, he
houId- share in that prosperity.
How He Answered a Stockholdeg.
81 was once severely criticised by a
stakeholder for having distributed 10
or 20 per cent. to the managers OF
departments before, we had paid any
dividends. This stoekheldeR ehafac-
teried it as a useless eKtraNagance- /
asked him whom he considered the
most successful profit producer.
g Andrew Carnegie he answer
ed.
g sf5xaet1y,' I replied, 'eWen he gave
SO per cent. of his profits, and can
speak auth oritatively on this, because
I shared in some of them
sProft sharing will settle the labor
problem eventually. 1T will be sur
yiyal Of the finest; the producer will
be rewarded while the non=pFodueeF
will remain xhefe he is.
ssBig business has eliminated small
bushes In other days the small bus
mess man was able to acquire a eem=
peterlce and retire. Under the new
regime all honest labor will be able to
look forward to getting enough to live
ON in old age.
ssrhere is No hope fer the success
of any business today unless 1t Is
highly specialized. The small husi=
ness cannot exist, for the reason that
the big business by economies has
made it Impossible The e1nploye. WIN
supplant in earning capacity the
small business man. Thus by his own
efforts, without capital, he will secure
the competency for which we all
strive
AS an instance of the specialization
spent SO, 100000 in the development of
out having moved a. ton of ore. He is
now building ten ships of more
than 1900 tons each.
He Tells the ''Bob'' Story.
He was called on to tell the Bob"
story when he was manager of one Of
the Carnegie plants and very proud of
his position
"a Carnegie manager was mighty
big man in any town he was in Mr..
Sehwab assured. his hearers. He was
a bigger man than most of you would
believe I was riding in the carriage
with Bob the negro driver. one day,
and as we passed, a woman and q, lit
tie child were standing by the road.
g There goes Mr.. Schwab,' the wo=
man said to the child I was ina
pressed that she too knew what a big
man was. But the child soon put