The Hawaiian gazette., 1916-06-02
Of GAS
COMPANY ACQUIRE
STOCKOF CONCERN
VIZ. 4it3tt+t4~4T44 -
President william R. Castle In
augurates Liberal Cooperative
Plan For Mutual Benefit
FIFTY ATTACHES GET
SHARES AT DISCOUNT
Holdings Purchased On Easy
payment Basis As Safe and
Profitable Investment

Fifty men, employees of the Honolulu
Gas Company are now, or soon will he
stockholders in the corporation that
pays their salaries. They have been
offered and have accepted an opp0r
tunity to invest in the shares of the
company, through the generosity of w.
Il. Castle, president of the corporation,
| portion Of whose stock the men are
buying.
The scheme Is not new one with
Mr. Castle, who bases his idea on the
Ian adopted years ago by the United
States Steel Corporation, shortly after
its formation by the late j. 7. Morgan,
and which in turn adopted the idea
from the Carnegie Steel Hoop Com.
.pany. The directors of the big steel
rust set aside a certain proportion of,
he stock of the corporation, which was
o be sold to the employees on the in.
stallment plan, so much down and so
much a month.
first Test Made In Hawaii
The plan is said to have worked
5plendidly in the States, has gradually
moved westward, and is now more OF
less common in California and other
ioast States. SO far as is known, Mr.
Castle and the gas company are the
irstg TO try il out in anything like an
organized manner in Hawaii.
The plan has been simmrring foI
some time in the mind of Mr. Castle
ccording to friends Of that gentleman,
md some weeks ago it assumed con
'rete form. He set aside fifty shares
# his own holdings in the gas com
'any, and offered them to the men
rnder him at7par.
This meant a loss of approximately
.orty dollars a. share FOR him, as the
took was then quoted at about $40
although none of it was on the market
nd ir WAS practically impossible to
"1uy"in any of it"ar" any"pricpA The
plan he laid before the employees of the
corporation was simple. In effect it
was this
Mr.. Castles Proposition
"Here are fifty shares of stock in
the gas company. | am willing to sell
them to you in order to benefit you
md also by the increased interest
which you will take in your work
benefit the company, for forty dollar
less than the market value, and OF,
such terms as you yourselves are will
.ng and able to meet -
The men to whom the offer was made
held a meeting and after discussing
the matter decided to appoint a trus
tee to whom the stock should be turn,
ed over by Mfr. Castle, to be held for
the employees until such time as their
monthly payments of five dollars a
share, should be completed, or in TWEEN
ty months after the plan went into
operation. This arrangement, with
certain other details, proved satisfac.
tory to Mr.. Castle and the final de.
tails were settled and the plan began
its working out.
Fifteen Fail To Profit
There are sixty I'VE employees of tn,
gas company. but fifteen of them 70
me reason or smother were either un
bic or unwilling to enter into thu
'chenr. Tn" fry who did take the
'harCs are enthusiastic over the idea
Frank z. Cannon. the acting man
lger of the company, when asked abOu
he matter last night, in the absence
IF Mr.. Castle. who is in Hawaii, de
lined t" talk about the plan, furthe
than to confirm certain Of the details
~ am not at all sure that Mr.. Cas-
lie will be pleased to learn that his
'lan has brc"mr known,' said Mr.
Cannon, "hut | am sure that it is go
ny to- prove good one for all con
:erned. The men are going to be kRl
loser to the concern for which they
re working, which is fine thing 70
he concern and il fine thing for the
men"