The Birmingham age-herald., 1916-01-31
HOW WAGE BANNERS. SHARE THE PROFITS. .OF b|G CORPORATION Resumption of Common Div idend Not Announced Un- til Increase in Wages PROPHESIES SHOW
 KEEN FORESIGHT With Steel and Iron as a Barometer the Entire Nation Is Approach
 ing the Crest of Great
 Prosperity
By HOLLAND

New York. January 30.-(Special. .)-Since the report of the United States Steel corporation for the last three months of the year 1915 was published, a few days ago, the comment has frequently been made that the public, and especially the financial district public, should have taken the hint which was contained in the announcement of the increase of 10 per cent in the wages of this corporation's employees, the aggregate being about s15- O00'0O0 a year. That increase was an- nounced some weeks ago Now some who are thought to be astute in discover ing the meaning behind the action of managers of great industries are won dering why they did pot perceive that this increase in wages inevitably pointed to the resumption of the per cent divi- dends upon the common stock of the cor poration.
 A little over a year ago, the late Nor man B. Ream, who had served upon the finance committee of this corporation from the day of it's organization ex- plained, contidentially, what Was involved in the decision of the managers to pass the dividend. The reason for the confi- dence at that time enforced by Mr Ream no longer exists. He said that if the
 
 dividend at the rate of per cent, it might be compelled at the same time to reduce wages. Therefore, the stockholders who received 2 per cent would gain that much at the expense of the wage-earners That was thought to be not in line with the fundamental policy of this organization. Therefore, wages were not reduced, but the stockholders had lean year.
 Mr Ream also intimated that if good times ever came-and he believed they would come-and if by reason of good times the earnings were increased then if any use of these earnings were made in the form of distribution the wage earners would receive their proportionate part of the gain first and the stockholders second
 This prediction which was made in the fall of 1914 by MT. Ream has now been Justified although he did not live long enough to know that it was an accurate prediction. There were a few who sur missed after the increase in wages was made that it might point to a resumption of the per cent dividend.
 GEORGE w. PERKINS, VIEW
 When speaking, a few days ago. of the true relation between capital and labor, George w. Perkins said that his eperi- ence had been-and his experience is also that of his associates in the management or the United States Steel corporation that intelligent la bor does not begrudse capital fair, even generous, return in interest or dividends; but when labor does not know whether the return is fair, generous or eXorbitant it is natural for labor to suscpect that it is exorbtant and i'll that case it is sure to make de- mand for it's proportionate share in the prosperity of the company.
 The skilled artisans employed by the United States Steel corporation are we'll informed respecting the earnings of that corporation and are now assured that they will share any prosperity the corpora tion may gain and will be last to feel the effect of demoralizaton or stagna- tion.
 SCHWAB'S PREDICTION
 Charles M. Schwab was quoted several years ago as having ventured the pre- diction that the time was ont distant when the United States Steel corpora tion: would be earning probably as much as $2OO,OOO.O00 year. For the first time since MT. Schwab made that prediction if he were correctly quoted-the earnings for one quarter will, if maintained, re- suit in earnings of approximately S20O, ,OOO,- 600 in a single year. Mr. Schwab was said have based his judgment upon his forecast of the continued increase in the iron and steel industry in the United States. He is known to have made an- other prediction which has been almost justified, for he professed himself to be confident that within short time the United States would be turning out yearly 100000 tons of pig iron. The latest authorized report shows that already the