The Washington herald., 1919-04-05

the capitalization OF many OF the
large corporations OF the United
States.
Nevertheless the net earnings were
nearly sl3s.o0o.ooo not quite as much
as the prediction made by Mr..
Schwab
Not at any time have the managers
of the United States Steel Corpora
ton regretted the heavy increase In
wages which they have. especially
since the European war. adopted.
Nearly all. If not ALL of these in
creasesl were made voluntarily by the
managers, there having been no spe-
cial or urgent appeal from the skilled
artisans or those employed as labor
ers for increases.
And this result, in the opinion of
many, furnishes an object lesson for
those who are diligently studying the
true relation of those who are en-
ployed to the corporation that en-
ploys them With successive increase
in wages. some of them bringing un-
paralleled weekly earnings to the en-
ployes. there has followed an increase
in efficiency. lowering in the cost of
production, and spirit of content
nent and satisfaction accompanied by
some sense of pride on the part of the
employees, because they feel that they
constitute an important and we'll rec
ognized part in the affairs Of the cor
poration.
Geo. W. Perkins Plan.
In 1903 George W. Perkins worked
cut, after long and patient study. a
method by which the employees of the
corporation would be enabled to gain
some share in the earnings of the cor
poration in addition TO their wages or
salaries. Mr.. Perkins did not call this
profit sharing. He had little faith in
the customary methods that were
adopted by managers who permitted
their employees to share in the profits
He wanted to perfect a method by
means of which the employees could
utilize some part OF their earnings in
purchasing an interst in the corpora
ton. For IL they were able to do that
then they would be relieved from
! the sense of charity or OF any OF the
| bonuses involved. They would begin
to feel that they We're. as owners, a
part of the corporation.
This was the fundamental princi-
pie upon which the late Abram S.
Hewitt, himself an iron and steel
manufacturer even when he was
mayor OF New York and during
many years when he served as a
member of Congress, based his be-
| lief of what the true relation of
employees should be to those who
paid wages. He was confident that
| if the men who aided in the produc-
| tion of the commodities Of a corpo-
ration were able to secure through
the ownership of shares an interest
in the corporation. then gradually
| they would increase that interest
and it might be that in due time the
employees would own a majority of
the stock. That. Mayor Hewitt was
confident. would put an end to labor
troubles.
$4,000 Employees.
Mr.. Perkins did work out a plan
which involved. not bonus giving or
profit sharing, but ownership of the
stock gained through the utilization
of some part Of the earnings of the
employees. Some doubt was felt
when this plan was adopted about
its success. No longer does any
doubt prevail. Seventy-eight thou
sand employees of this corporation
are share holders. They own in the
aggregate 351, 900 shares of the pre-
ferred stock and $4,000 shares Of
the common stock, and they have
paid for every dollar of this stock
out of their earnings. /
Many--thini< .that-this js<perhsPs
the greatest achievement. of this
giant corporation. greater even than
the achievement shown by its bal
ance sheet of total assets and liza
bilities OF $500. 10000. The entire
report is a masterpiece so far as
setting forth. as il can do when
carefully read, the main features of
the stupendous growth of the United
States in industrial progress, is con-
cerned And it is admitted and was
so judicially decided by the circuit
court. that this achievement has
been accomplished without doing in
fjustice to any one.
HOLLAND"