The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1888-09-29
DIVIDING THE PROFITS.
Co-OperatIve Experiment Of Great IN
Far-KeAehing NaIue.

In detail the fluctuations Of the vari.
Gus businesses in Cincinnati, either in
appreciation or decline, but il may ba
noted that IL has more than held its
own in one Of the great staples-leaf
tobacco-and still maintains leading
position. Yet / must refer 20 one OF
the industries for the sake OF an inn
portant experiment made in connection
with it, This is the experiment OF
proiit-sharing at Ivorydale, now, be-
lieve, the largest soap factory In tho
world. The soap and candle industry
has always been large one
In Cincinnati. and IL has In
creased about scventy-fve per cent,
within the past two years. The pro-
prietors at Ivorydalc disclaim any in
tention OF philanthropy in their new
schcme-that is, the philanthropy that
means giving something for nothing.
"a II charity; 1t Is strictly business
operation. II Is an experiment that l
need not say will be watched with n
good deal OF interest as means Of
lcsscning the friction between the IN
tcrests Of capital and labor. The plan.
Is this: Three trustees are named who
are 20 declare che net profits OF the
concern every six months; for this pur-
pose they are 20 have free access TO
tho books and papers ut all times, and
they are TO permit tho employees 20
designate book-keeper 70 make IN
examination for them also. In deter
mining the net profits, interest on
all capital invested Is cali
culatcd rs an expense ut the rate OF
six per cent, and reasonable salary
Is allowed TO each member of the firm
who gives his entire time 10 the busi-.
ness. In order TO share in the profits
the cmployc must have been at work
for three consecutive months, and
must be at work when the scmi-annual
account is made up. All the men
share whose wages have exceeded S5 u
week, and all tho women whose wages
have exceeded 1925 week. The
proportion divided 20 each cmployc Is
determined by the amount OF wages
earned; that IL, the employe shall
share rs between themselves In
the profits exactly Us they
have shared In the cntiro fund
paid as wages 90 the whole body.
excluding the first three months
wages. In order TO determine the
profits for distribution. the total
amount Of wages paid to all employees
(cxccpt TO travelling statesmen. who do
not sharo) Is nsccrtaincd. The amount
Of all expenses, including interest and
salaries. Is asccrtaincd, and the total
net profits shall be divided between
the firm and the employees sharing In
tho fund. The amount Of the net
profit TO be distributed will be that pro-
portion of the whole net profit which
will correspond to the proportion OF
the wages paid rs compared with the
entire cost OF production and the
expense of the business. To
to all employees shall equal
twenty per cent. of the entire cxpcDd-
iturc in the business, including inter-
est and salaries Of members Of the
firm, then twenty per cent. Of the net
profit will be distributed to employees.
1t will be noted that this plan pro-
notes stcadiness in work, stimulates
industry, and adds most valuable
element of hopcfulncss to labor. As II
business enterprise for the owner il Is
sound, for it makes every workman an
interested party In increasing the prof
r a, T., L..
in production, but In the market
ablcncss OF the thing produced. There
have been two divisions under this
plan. At the declaration of the first
the workmcn had no confidence in IL;
many of them would have sold their
chances for glass of beer. They cx-
pcctcd that "cXpcnses" would mako
such large figure that nothing would
bo left TO divide. When they received,
as the good wOrkmcn did, considerable
sums of money, life took on another
aspect TO them. and we may suppose
that their confidence in fay dealing
was raised. The experiment OF year
has been entirely satisfactory; it has
not only improved the class Of ON
ploycs, but has introduced into the cs-
tablishmcnt II spirit of industrial cheer
fulncss. OF course, il is still an ex-
pertinent. So long n business Is good.
all will go we'll; but if there is bad
six months and no profits, 1t is impos-
siblc that suspicion should not arise.
And there is another consideration: tho
publishing To the world that the bust
ness of six months was without profit
might impair credit. But, on the other
hand. this opcnncss in Legitimate busi-
ness may be contagious, and in the end
promotive of "a wider and more stable
business confidence. lvorydalc Is one
of the best and most solidly built in
dustrial establishments anywhere TO be
found, and doubly interesting for the
intelligent attempt To solve the most
difficult problem in modern society.
The first scmi-annual dividend
amounted To about nm eighth increase
of wages. \ girl who was earning five
dollars week would receive rs divi-
dcnd about thirty dollars year. |
think il was not in my Imagination
/ that the laborcrs in this establishment
worked with more than usual alacrity,
and seemed contontcd. II this plan
/ shall prevent strikes, that alone will