The Portland daily press., 1888-04-25
LABOR AND CAPITAL TO Be PARTNERS.
The plan of Cooperation to be Tried
In a Maine Shoe Factory.
A Lynn Capitalist Who Has a SoIu-
ton for the Labor Troubles.
Partnership Plan Large Enough to
Take in All Hands

LYNN, Mass, April 24.-One of the promi-
nent shoe manufacturers of this city, who
has large shoe factory in Maine, ON the
Kennebec below Augusta. and who has been
led by the great strikes among the shoe max
ers of this city to make a somewhat extern
sive study of the relations of labor and capi-
tal has lately perfected novel plan for ad-
mitting his employers to share of the busi-
ness. This plan, which he will very soon
put in operation in his Gardiner factory, he
has disclosed for the PRESS as follows:
81 have been in the business Of manufac-
turing shoes good many years. For long
time l operated a factory here in Lynn, and
am one of those who have been driven to
NJ aine by the war which has of late years
ragged between labor and capital here in
Lynn. My factory in Lynn still own, but
| do not operate it. have transferred my
business entirely to Maine, and to that field
shall devote myself.
"Of the turmoiIs here in Lynn have been
a student as well as sufferer by them. And
have observed this that there are large
portion of the operatives to whom labor
troubles are distasteful. They are, as might
be expected, thrifty portion, who want to
lay up something and get ahead. tThey are.
aud have been for some time, heartily tired
of the agitations here in Lynn. But they
are outnumbered and doverpowered by noisy
element that favors strikes and boycotts
and, in fact, wants to run the factories that
are owned by someone else.
''My plan is to separate these workmen
from the rest, make a class Of them II you
please; and put them on such footing that
they will feel that they have too much inter-
est in the business to strike, and in such
good circumstances that their example shall
have a good effect on other workmen who are
inclined to be less provident and steady. My
plan is not simple cooperation, because DO
not believe that company of even the most
intelligent operatives are fitted for the sue
cessful management OF large 0uSl1esS In
these days of close competition. Neither 90
l believe that the profit sharing plan has In
it the elements of permanence, because it is
not strictly just that capital should take all
the risks, pay the current prices for wages
and then divide its profits with operatives
who themselves take none OF the risks of the
business, and are at any time liable to jeop--
ardize it by foolish and i'll advised strikes. /
do not believe that laborers are children, to
whom surplus profits should be dealt out as
gifts without their understanding anything
of the business which enables the employer
to favor them; neither do | believe that the
laborers of the present time, or at least the
laborers in the shoe factories, are as rule
of sufficient business experience and ability
to establish and operate industries them
selves. The business of a shoe factory can
not be run in town meeting, neither do be-
lieve it necessary for it to be managed by an
autocrat. BY my plan / endeavor to strike
the mean. The laborers are to share the
profits, but they must share the RESPONSE bill
ty. They are to have an advisory voice in
the management of the business, but the
conduct of the business is to rest with capi-
tai.
81 will explain practically the scheme
which am putting into execution in my
Maine factory. have there, / will say, two
hundred and fifty operatives. They are all
of the best class of workmen, and propose
to keep them SO if can. l shall say to them:
Il propose to give you share Of the profits
of this business, but you must also share its
losses, Each of you must put up one hun
dred dollars. This will make an aggregate
sum of twenty-five thousand kdollars. This
is the amount you put into the business.
capital stock of fifty thousand dollars, on
which we will conduct the business OF manu-
featuring shoes. We will manage the busi-
ness by board of, say, five directors, OF
whom you shall select two and L three.
take majority of the directors because, al
ital, 1 have alone the skill and experience
to conduct the business. There
fore it is right that should retain the direct
ing power, while you are to have sufficient
representation to enable you to know how you
are being dealt with With the relations of in
terest and power thus settled, propose to
begin business. shall consider myself a
laborer like the rest of them, but as / have
the experince ] shall be manager of
the business while they are operatives.
Il shall receive a salary sufficient to give
me the living that superintendent in my
position would be expected to.have; they
are to have the wages that are necessary to
give them the livings to which they are ac-
nothing more. shall assume
that the wages which they are at present
| intend that myself, and they, too. shall
just get living from the wages. Every
thing else of the profits, except, OF course,
what is necessary for incidental expenses, is
to go to capital. At the end of the year the
eent of w Them viii Be I laid p asde for r
serve fund, the other 80 per cent will be dis,
tributed to the capital. To this reserve fund
additions will be made until it becomes sufti-
GENTLY large to insure against any probable
years Of loss. Then the whole profits Viii Viii
gives me half the profits; but have fur
nished half the capital, and it is to capital
that the profits are applied. Both they and
/ have already been paid wages according to
our relative degrees of skill, experience and
81 fully expect that this plan will give me
the best class of workmen. for the poorer
and more turbulent cannot put up the capl-
tal l think the business can be managed SO
that the workingmen will be satisfied and
ana 50
in order that they may get places in similar
cooperative undertakings or partnerships"