Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1920-01-01
Million Bonus Paid.
Ford Industries Divide Profits
With Employees.

- With Employees.
Detroit, Mich Dec. 81. Henry Ford
and his son Edsel Ford announced today
the distribution of $4,000, 900 bonus
among the 80. 600 employees of all branches
of the Ford interests and the Inaugural
ton of an investment plan whereby every
worker, from the man who yields brom
to the chief executives. may participate
in the profits of the business.
Bonuses, which will be paid in cash to-
day, come in addition to the profit-shar-
ing plan which was inaugurated several
years ago and which will be continued.
1t is the intention of the Ford organiza-
ton to make the distribution of these
bonuses an annual event if the earnings
of the company permit.
In cash and in the number of men con-
cerned, and without counting the moral
effect on industry as whole, this act OF
economic justice surpasses anything IN
the history of labor.
The lowest award paid goes to men
Sc day and who have been in the en-
ploy of the various companies three
months. Itamounts to $50. The high
est award goes 20 the skilled workers
who have been with the company five
years and who are receiving $lo.SO day.
The bonus received by the latter amounts
to $27O.
Employees who receive salary will al
so receive bonuses. Ability and length
of service will be the standard on which
the awards will be based.
In announcing the plan which permits
employees to invest up to one-third OF
their pay in the organization and share
in the prosperity of the company, the al
lied interests of Henry Ford are carrying
out the ideal of Mr.. Ford that labor has
a right to participation in the benefits of
the prosperity which it helps to create
and, in the words of Henry Ford himself
"should have d share as well as job. !"
When the complete ownership of the
Ford Motor Company was acquired by
Henry Ford and his son last summer
steps were Immediately taken to work
out the details of the bonus and invest
ment plans announced toda . 1t always
has been the Ford policy to discourage
big dividends to non-producing stock
holders. and to use profits in rewarding
labor and in expanding industry. This
policy, as Henry Ford regards it means
not only good pay and share in the
profits for the workers, but the employ
ment of more and more people as the
business grows,
Henry Ford holds, and has repeatedly
stated it as his belief. that no man should
be permitted to own stock in an industry
unless he plays productive part in the
operation of that industry, and the initi-
alton of the investment plan is pract-
cal application of that belief.
Under the investment plan certificates
will be issued in the names of employees
in denominations of $l00 $500 and $1,000.
Only persons in actual and active SER
vice Of the organization will be permit
These certificates will bear guaran-
teed il tel est at the rate of six per cent
per annum and in addition to this fur
| Their pa ments will be made semi-annu-
ally if the earnings of the company per-
nit, at a rate fixed by the board of
directors.
In case of death or disability certifi-
Gates standing in the name of an en-
ploye may continue, at the discretion of
the din ectors, to draw interest and pay
ments for he benefit of his dependents.
Deposits toward the purchase of GER
tificates may be made within three days
after an employe rec,i ives his pay from
the company; the amount deposited
however, is not to exceed one-third of
such pay. Deposits made toward the
purchase of certificates will draw inter-
est at The rate of three per cent per
annum. compounded semi-annually.
Certificates must be paid for out Of
bonus or pay and no employees will be
permit. ed to draw money from his bank
dECOuI- vi CItST coCTCS " udAc pay
ments.
A significant statement may he found
in one Of the closing sentences of the
compar, s announce ment. 1t reads:
"Other plans for enlarging the income
and increasing power of the dollar of
our employees are under consideration I"
The policy ref,cted by these announce
ments is not new with the Ford organ
ization. The history for the company
for the last five years shows that its
ideal of industrial justice has always
been high. In 1914 the Ford Motor
Company announced minimum pay of
SIS day since which time it has distri-
buted approximately 100 million dollars
inprofits to, employees. Following this
Mr.. Ford was sued by minority stock
holders and compelled to paw dividends
instead of reinvesting earnings and in
creasing wages as he desired. Sometime
later, however, came the announcement
of a SO day minimum scale of pay and
then the. purchase of the holdings of
minority stockholders by Henry and
Edsel Ford.
No sooner was the organizati in
their complete possession than they be-
gan to arrange for an additional dis
fr;huf;o,, ~ y,rof,t, with thar tbono o mr. @