Every evening, Wilmington daily commercial., 1921-01-15
HERCULES POWDER CO.
To ELIMINATE BONUS
EFFECTIVE MARCH |
In Line With the General Busl-
ness Readjustment in
Industry.
BOOST WAS WAR MEASURE

The monthly bonus which salarled
enployes Of the Hercules Powder Co.
have received since October /, 1919, IN
order to enable them 30 meet the past
high cost of living, will be dlscontiI ued
on March /. according 20 an annouE &C.
ment made today by the board OF d.
rectOrs.
This action it is explained, Is in accord
with the general policy Of industries
throughout the country III gradual!y re-
adjusting their affairs "a the return to
normal conditions is achieved. The bonus
was granted at time when prices were
NJ their peak in order to offset the de-
probation Of the purchasing power Of the
individuals income and To meet the
competition Of other industries paying war
salaries Now that cost OF lvmg Is de
creasing and in tho future must constantly
and surely decline, il is belieYed that the
| purpose OF the bonus has been served,
! according 10 officers Of the company
| The fact that March ! has been set Tor
| the action 10 take effect allows even
/, further time for much greater decline N
/ prices and enables the employees Of the
/ company 20 prepare for the return 70
/ their ordinary salary status.
President r. H. Dunham, OF the Her
Il I
, t0dsv said.
The action which has been taken by the
Hercules Powder Co. is not IN any sense
/ \ single isolated case. but It's strictly IN
| line with the policy which is being followed
4 by businesses al ever the country
l policy which has for its purpose assistance
! IN the necessary reconstruction which
must take place before business can e.
forward again on a soun d and normal
footing 1t must be understood that the
bonus which was added TO the monthly
salaries of our employees was never IN
tended as g permanent increase and was
the result OF a greatly inflated scale o.
compensation. all over the country. addec
TO the company desire to assist Its mem
bersin meeting the high prices.
ALREADY there has been some decrease
inI living costs and with wholesale prices
reduced as they are. il seems only ques
ton of days before the retailer who ha'
received the benefit of such large proflt'
| will be forced 10 adjust his prices as th'
| manufacturer has done, thus resuitm.
in q steady decline until normal condition
4 are reached. With the practically assured
decrease in prices, We feel that the bonu
has served its purposes and that II Is oni'
consistent with good business policy II
this period Of readiustment through
which sllindustries are passing. 10 remov'
it, We do not believe that this actor
viii work any general hardships upon on
= organization, the members OF which reallz
that their expenses viii decrease as th'
/ retailer of the necessities of life Is com
peklled to make his prices accord wit
recent wholesale prices
The Hercules Co.'S bonus Is schedules
according to monthly salaries as follows
twenty-five per cent on the first hundre'
dollars: 2I per cent on the second hundre'
dollars; Is per cent on the third hundre'
dollars, and 10 per cent on the iourt
hundred dollars.
Thus, an employe whose base salar
is 500 receives s125, and one whose bas
salary is $500 receives $40. The remoVs
of the bonus, Of course, results in rsturl
to base salaries. Therefore an employ
now receiving s125 viii, after March
be paid 500 and so on, according 20 IN
schedule explained above.