Milford chronicle., 1940-05-03
DIVIDEND MELON CUT
BY SEARS-ROEBUCK
tcOalinuaa IRON Vilal Paesj

Dover members OF the Sears profit
sharing fund learned at the meeting
that the company had contributed a
total OF S3.0lS, ABS to the fund ma
tionaiiy out Of its 1889 profits.
Company contributions to the pro
flt sharing accounts of employee
members were made according to the
length of their periods Of service as
follows:
For members Of the fund who have
been with the firm for less than five
years, the company contributed 49
cents for every dollar deposited by
the employee during the fiscal year.
For those who have served from five
to ten years, the contribution was
So cents for every dollar saved by
the employees. For those with more
than ten years of service, the COM
rany added S1.47 for every dollar OF
the fund members deposits.
In addition, the company cOntrl-
buted 20 cents for every dollar (up
to $4,000 deposited by each mem
Der. without regard to the members
length Of service.
The fund operates in the following |
manner:
Five per cent Of the salary of every
fund member is deducted at the end /
of each payroll period and placed to
his eredits in the fund. However, all /
profit sharing fund members are
limited to a maximum contribution 4
of $3.50 year, thereby limiting the
Contribution of the higher salaried
employees. The cOmpany's eOntri-
buttons out of profits are made at
the end Of the fiscal year. The mon
les thus deposited in the fund are
invested in Sears. ROebuck and Com
pany stock which is appOrtiOned
among members according to the an
nual deposits registered to their ac-
counts.
The fund has 4O,l74 members.
More than 9s per cent of all eligible
are members. The funds
current assets amount to $51, ,134 $40
based on a value of $50 per share
for Sears stock-and these assets
are credited directly to the accounts {
Of the Sears employees who are
members Of the fund. However, the
actual money deposited by the em-i
ployees in order to acquire these /
credits was cnly S12,941,945.
Manager H. A. Ulrich, of the Do |
yer store, presided at the meeting t
.oday and passed out in sealed en-
Felopes, individual statements to the J
profit sharing participants. Deliver '
ng what was. in effect, locally an q
annual report to stockholders" he i
'ecited certain statistical factors OF '
he funds history He said:
During the "a years Of the funds '
operation, S1S51 employees who t
nave died, retired, or otherwise left O
he company, deposited $13,206,049 I
n the fund. They drew out in cash 8
1r stock valued at the time of with +
irawaD assets worth $57 7,3S8,717.
Thus these employees who have
from the fund realized :,
4 value of S57.3SS,717 from an IN +
gestment, out Of savings. of S13,- z
,O6, ,049-an appreciation of $44.1S2.- =
air interest rate.
Summarizing the operation of the
und, Sears, employees-pa and :
,resent-deposited s26,147 ,994; the I
company has contributed $33s512IS2s. =
md the combined assets-(both i
hose drawn out and those remain !
ng in the fund.-, the latter valued on !
he basis of SS0-per-share Sears =
tock)-amoHnt to $lOS,523.357." :
Sears employees were paid in sal n
ries during 1889 an all-time-recOrd =
Otal of s960SS,O0O. Manager Ulrich
aid.
But in addition to the actual sal
ries, he continued. the company e.
pent for voluntary employee bene- p
is such as profit sharing, vacation. a
ck leaves, holidays and SO forth N
YER and above social security and al
Unemployment compensation pay el
ents-the sum of SS,500.O00. This g
to S149 per employee for IN
lie year. p