The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-03-07
SCHWAB BONUSES
N 1915 100000
Mechanics Earn Big Pay, But
He Calls MilIitn-DoIlar Gifts
Only a Myth.

BETHLEHEM, Pa, Marcn tue
bonus plan is in full operation at the
Bethlehem Steel Company, and has peen
ever since Charles M. schwab assumed
control OF the works.
All men in the production end particl-
pate. from the superintendent down 10
the mocha MICS, although the common
laborers are excluded. Nor do the
bonuses 20 to clerks.
A good many OF the mechanics whose
regular nav IN normal times would be
50 day awe been earning from sSO 10
800 every two weeks, bonuses Included
and a large number as high as $50 FORT
nightly.
The highest bonus paid to any depart
nent head last year is said to have been
y $4,000.
System Is Retroactive.
The bonus eystem is retroactive and
failure Is penalized with negative
charge. The plan often works a hard
ship on men who are not directly at
fault. This Is because the bonuses are
a premium on production. II a shell
or a gun shows a fault. so that 1t Is
rejected, a charge is made against every
person who had a hand in producing 1t,
back to The very men who made the
original molten metal.
Through an unavoidable accident one
foreman lost his bonus for a year
which he figured would run to 1850,
and got into debt besides. He was SUI
perintending the casting OF a large
quantity Of valuable metal when a
heavy chain broke and the metal was
lost. The chain, regularly supplied from
the stores, had been tested and guar
anteed.
It has been remarked that some Of
the younger foremen. many OF whom
are graduates of technical schools, have
obtained enough bonuses In year to
buy comfortable homes. The grand total
of bonuses paid last year is estimated
TO have been between 100000 and
$4,000
No 100000 Bonuses.
Reports that an official of the COM
pany last year received bonus OF
81 100000 and another $6OG.OO0 were cr'-
phatically denied by Mr.. Schwab. The
head If the big concern said that he
had never made any such statement,
and deprecated the publication OF the
report because of possible dissatisfac-
ton among other employees.
Men who know these statements are
not true make fun of YOU. while those
who don't know the real facts become
around" said Mr.. Sahwab. 81 canrot
imagine why i should have been mis-
quoted like that.
Some OF the officials at the steel
works receive handsome salaries. bc
cause they earn them. and some Ut the
mechanics and other workmen receive
handsome wages. also because they are
worthy of their hire. but my CHER con-
Germ IL the payroll. from which every
body gets something, and ! am not es-
pecially busy In trying to make one or
two millionaires."
Denies Receiving 100000.
Arch Johnson, vice president of the
Bethlehem Steel Company, whom the
report mentioned as having received
100000 in bonuses last year, said there
was no truth in 1t. President Eugene
Grace and Vice President Johnston,
after many years of hard work, have,
efforts. but neither Of them ever made
anything like a million. or $6oG,OOO In a
single year.
The following story of Mr.. Grace was
This man thought he ought to have
100000 for improvements and extern
stons. Mr.. Grace said he would study
the request, which was made In a re-
After several weeks had elapsed Mr..
Grace called the man into his office
and said:
Honors 100000 Requisition.
'All very good, but do you think you
can do your best with s5Oo,OOO?'
ia rather have 1000. OO0," said the
superintendent, and then he explained
what he could do with 100000.
Exactly" responded Mr. Grace. 81
think we had better go about 1t in the
big way tight of, and II you make a
requisition for 100000, with your plans
as you outline them. II will be honored."
When the war orders came that de-
partment was able to turn out it's prod
uct at an astonishing rate, and enabled
MT. Schwab to demonstrate to Lord
Kitchener that he was equipped.