The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1871-09-30

scheme, they have abandoned q, and hav
gone . step further MessrM Fex, Head
d Co.'S iron works, at Newport, are nov
conducted on a kind Of Industrial part
nershiP plan, but il differs essentially II
many imPoPtant particulars from Mr.. JDo
w. Britons plan, % expounded in Thurs
days World. The main principle, namely
that every person employed shall have I
Pecunlary interest IN the success Of the
business, and the profits TO be made, thai
interest being as far ~ possible in proper
ton TO the services rendered, is nearly the
same IN both plans" .l1i rom xa
please to explain the chief details q
Messrs. Fox, Head --& Co.'S present
scheme, and point ont what you consider to
be its defects and advantages."
81 may stonce tell yeu that, although
think MessrA Fox, Head q Co.'S present
scheme u as great an advance in the CO
operative plan as cooperation il on arbi>
tratiou, I do not think it will be generally
adopted, or that It win give complete satis.
faction 10 Messrs For, Head A Co. 4
workmsn. Indeed. II believe that when
they learn what Messrs. Brewster a Co.
have done in New York the Newport work.
men will regret that they have agreed @
abide by the new rulesfor 90 long 1 period
as Eve yesrA Unlike Mr.. Briton's echsme
the English industrial partnership u NOT -
honest attempt to settle the labor question.
IL 10 merely q scheme for the protection ol
Messrs. Fox. Head d Co. from The inc,u.
venience and loss arising from possibls
strikes They agree 10 pay their workmen
At the customary rates OF the district, but
in the event Of . rise or fall in the rates Of
wages, Messrs- Fox. Head q Co.'S work
men have to wait until The alteration has
been generally accepted throuehout the
district. Thcy are qaits ut the mercy Of
the firm in this respect. because no person
intheir employ is allowed to be a member
trsdss - alfsmlfine y saalzal
kulats wiz u u
employers ~ Ha Isysd u w |6sts,
directly or indireetly, 70 the support cf any
such society. Breach of this rule is pun
ished BY forfeiture Of an participation in
the profits. and BY discharge from employ.
ment. Amuch more ob9ectionabls feature
is that the beads, Of the frm entirely con-
troll the rate Of wages -pricss for piece
work, and salaries paid to workmen, clerks
and agents-nerely promising tbal they vii
Act to the best Of their Judgment for the
good Of the concern, but, Of course, having
regard to the market value in the dishict." I"
IF that is 50. the general adoption Of
The scheme would place the rate Of wages
entirely under the control Of the employ
ars
Entirely but / should mention that
lhe employers agree not 70 combine with
other firms With view 10 control or rsgu-
late wages. II the plan were generally
adopted, each would pay wages according
70 their own interpretation Of fairness"
Are the vorkmen paid fixed percent
age on the profits Of the concern ?"
"No; but, practically, the employer
are. The wsrking partners in the firm are
paid salaries.at customary rates. and pro-
vision 10 made in every way to secure the
firf from loss. A rate Of ten per cent.
in& &rest h allowed 20 ths capitalists upou
thd dEs -outfay ON lad. wnrka. and alant. and
this percentage may be increased another
8 per cent for extensions or other purposes
by the 6rm to be advisable for the
efficient conduct Of the business. Their
in this respect does rot even end
bere, for if l6 per cent does not cover the
interest at 10 per cent on the original cap
ltal, and 8 per cent on their outlay for
improvements, they may carry forwsrd q
loss account, to be deducted from the pro
hts of the following year. The cost OF
repairs necessary for keeping up the works
and plant IN perfect sCate of efficiency, is
charged to the cost Of manufacture as also
all charges Of lawyers, bankers, and orhers
rs well az costs, damages, and expenses,
incidental to the business Of its financial
Operations. But debts are provided for by
fund created out of charge Of II per
cent. on the gross returns, and If ihe bad
debts are not covered by this fund, the
cost Of manufacture has to bear the addi-
tional burden. There are other conditions
the firm from loss in their capital
and labor, but l need not trouble you with
them"
swell, sir, now that you have shown
what stringent means are adopted to secure
the hrm from actual loss, tell me what is
done with the p o6es f'
"At the end Of each year during the
I've over which the agreement extends, q
hrm OF public accountants is appointed to
audit the accounts, and if they ind, after
paying all wages and salaries, and provid
ing for interest on the capitalists' outlay,
depreciation, renewals, bad debts, and all
other expenses incidental to the business
that any surplus profit remains, it is divi
ded into two parts-ths one being apprc
priaIed BY the capitalists as their prof., the
other being divided among those who have
received wages or salaries during The year
in proportion TO the amount Of each. And
if the result Of the years working is found
to fall short Of providing for all expenses
and charges, the deficiency 10 booked and
carried forward to be deducted from fu.
ture profits, and to be written off before
any division Of subsequent profits can be
made"
How has this worked 50 far ?''
"The term Of five years commenced
early in 1879, and at the. end Of the first
year dividend Of, | think, 5 per cent. wal
shared among the workmen Of course
the men were pleased to receive what tc
them was simply bonus, especially as they
bad received the current wages Of the dis
trict throughout the year. They bad I
grand dinner on the strength of it, and
greatly glOrified Messrs. Fox, Head & Co
ior their generosity. In my opinion the,
they deserve more credit for their ineenu
ity. Their scheme is. however, a good
step toward the true principle of industria
partnerships, which ! am very glad to Sc,
you have put in operation in this city"
Oil In Boilerp
DIR. JentE recently made the following
statementin answer To the communicate,