Milwaukee Plan

One of the most prosperous newspapers in the land is the solid old Milwaukee Journal which made money even during Depression. At her death last February, the 55% of Journal stock Founder Lucius William Nieman left in trust to his widow and his niece, Faye McBeath, was to be sold, not necessarily to the highest bidder, but to the persons "most likely to carry on the Journal tradition."

Mrs. Nieman's own will directed that proceeds of her estate be given to Harvard as a memorial for a favorite nephew The paper's President & Editor Harry Johnston Grant, who already owned 20% of the Journal, thereupon announced that he and Niece McBeath wanted to have the Nieman stock made available for a plan whereby the Journal's employes could buy in on the ownership (TIME, June 15)

This week, with the court's blessing because he is credited with the Journal's present prosperity, President Grant was ready to reveal his plan. It proved to be as comprehensive a set-up for employe-ownership of a newspaper's stock as the U.S. has ever seen.

The 1,100 shares in the Nieman estate were acquired by the Journal Co. and Miss McBeath at $3,500 a share, Miss McBeath buying in her part of the trustfund. Next, one-fourth of the Journal's total stock, split 100 for 1 to convenient $35 units, was offered for sale to Journal employes of five years standing. Since 531 Journalists qualified, each employe received an initial stock quota of from $500 to $5,000, based on his pay & rank.

Many a Journal man found last January's large bonus a help toward the 50% down payment on his stock. Balance was due within ten years, with dividends applied toward payment. Employes leaving the Journal, or reaching the age of 65 must return their holdings in the stock for resale to eligible employes. Through the trustees, they may sell at any time to other employes. To prevent sales to outsiders, employes hold "certificates of participation" with voting power, instead of actual stock.

With the new alignment, Mr. Grant Miss McBeath, the estate of a former Journal business manager and the employes will each own one-fourth of the paper. Mr. Grant and Miss McBeath have directed in their wills that their stock will eventually be sold to employes thus giving them full control.

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