New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-04-08
pROEITSH1RING,

a dispatch from Auburn, Mdlnc, anHOunceS
that a firm of shoe manufacturers have SUBJ
mitted to their $50 employees plan by which
the net profits of the business shall be divided
among the workmen The men are first to re-
ceive as high wages as are paid by competing
firms and afterward are TO share in the net
protits in proportion to the labor contributed
bv each. In connection with this dispatch
very instructive review of similar efforts in
Great Britain and in this country appears In
the new annual report OF tho, Massachusetts
Labor Bureau. The report first briefly de-
scribes cooperation and proiit-sharing methods
which have been tested abroad. 1t then sets
forth the plan of proht-sharing for long time
followed in the Massachusetts fisheries. Sew
eral important manufacturing establishments
in which the system has been tested for num-
Der of wears are then mentioned; the estab-
lishment of Cameron q Co., In this city, Which
divided profits for eight years-until MIR. Came
ron's death the establishment of Brewster &
Co.. which continued TO divide profits for two
years until the men dissolved the agreement by
a strike and the Peace Dale Woollen manu-
facture, which has divided profits since 1878
Perhaps the most important of the illustrations
given, however, is that of the Pillsbury Flour
years there have been in operation in Nassa-
chusetts from seven to ten corporations formed
under the Massachusetts law.
The experience in this country thus far has
been on the whole favorable to this form of adj
iustment. 1t does not altogether prevent I'M
reasonable strikes; thus, the workmen of
Brewster a. Co. struck for eight hours n day,
though they had it in their own power through
their board of governors to make eight hours a
working day, and by striking they forfeited a
dividend of $11 900 which would have been
due month later, besides losing $4,000 in
wages, and at the end OF two weeks went back
to work on the old plan of simple wages. But
there are very few cases in which workers have
shown so little intelligence in regard to their
own interests. In the vast majority of in
stances, the harmony of interests between en-
ployers and employed has clearly prevented
controversies and increased the prosperity of
the enterprise.
The amount of dividends paid, in addition to
regular wages, has been very variable. In the
Peace Dale establishment, no dividends were
paid the first year, per cent in the second
) per cent in the third, and 3 per cent in
the fourth and in the fifth year, but after the
fifth year the adoption of ten instead of eleven
hours for the days work reduced profits so that
no dividends were declared The Pillsbury es-
adjustment has paid three dividends of
$4,000, $4,000 and $4,000, but all the
men are not included in the arrangement
dividends are paid to those who have cOntinu-
onsly remained in service for five years. and
the number OF these is of course increasing
ana dividends are also paid to men in certain
positions of responsibility without regard to
their length of service. 1t is still a question to
be determined by experience whether 1T Is wiser
TO distribute the entire dividend in cash, or to
reserve part for the benefit of tho workers, as
il done in many establishments abroad (,
whether it is better to pay dividend after a
dividend has been made to capital or before OF
at the same time with such dividend and in
what mode, If at all, the power of the employ
ers to discharge negligent or incompetent hands
shall be limited. The Massachusetts report
clearly indicates the opinion that, where profit
sharing Is attempted, it is necessary for the
protection of the men that the power OF the
emplover to get rid of those who are not eff
Gent shall be unrestricted, and 1t is pointed out
that IN other countries, whore the men them
selves have associated for manufacturing pur-
pose agreeing to divide Profits, it has been
| found necessary that the association should ex-
ercise for the protection of faithful Workers the
| same unrestraned power to discharge those
| who are negligent or lnelfcien that Is claimed