280 ANDREW CARNEGIE 



The most convincing proof of the steady march of labor 

 to recompense more and more based upon profits, and in 

 forms drawing capital and labor into the peaceful bonds of 

 mutuality, is to be credited to the United States Steel corpora- 

 tion, the largest of all industrial corporations, and for which 

 they deserve unstinted praise, as proving a genuine interest in 

 the workmen and sagacious thought for their own. 



It is in this form: 25,000 of the $100 shares of preferred 

 7 per cent stock were offered to their 168,000 employees at 

 $82.50 per $100 share, in different amounts according to their 

 earnings, which were subscribed for twice over; nearly one 

 sixth of the men subscribed — one half being salaried men. 

 Twenty thousand more shares of stock were afterward pro- 

 vided, making 45,000 in all, worth about $4,500,000. Monthly 

 payments are received. Another distribution of shares is in- 

 tended. 



It will be noted that the investment is at the risk of the 

 men. This seems a feature which we may, however, expect 

 the corporation to change as experience is gained, as the plan 

 is most wisely stated to be subject to future changes. In 

 most of the states of the Union labor's precious earnings, surely 

 the most precious of all capital, are a first charge upon prop- 

 erty, and this I believe the only safe policy to follow. " Every 

 workman a shareholder" would end most of the conflicts 

 which sadden us between capital and labor. To effect this 

 every corporation could well afford to offer to distribute part 

 of their shares among the saving workmen, and in case of 

 disaster, give preference to repayment of principal as a first 

 charge. Any desired legislation with proper safeguards could 

 be readily obtained authorizing corporations to make savings 

 of employees up to a certain sum for each a preferred claim, 

 ranking before mortgage or ordinary debts or the claims of 

 shareholders, akin to the mechanics' lien and the homestead 

 exemption laws. This seems due to the workingman, who, 

 necessarily unacquainted with business, takes his shares upon 

 trust and becomes the beneficiary or the victim of his employ- 

 ers. He should be considered as an inexperienced youth in the 

 affair ; besides, he is asked to invest not solely for his own, but 

 at least equally for the advantage of his employer. 



