Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1888-12-07
DIVIDING THE PROFITS.
Cooperative IL .,eriment of Great and
ar-Reaching Value.

GUS businesses in Cincinnati, either in
noted that it has more than held its
own in one of the great staples-leai
tobacco-and still maintains leading
position. Yet l must refer to one OF
the industries for the sake of an inn
portant experiment made in connection
with it. This is the experiment OF
protit-sharing at Ivorydale, now, | be-
l1eve. the largest soap factory in the
world. The soap and candle industry
has always been a large one
in Cincinnati, and it has in
creased about seventy-five per cent.
within the past two years. The pro-
prietors at Ivorydale disclaim any in
tention of philanthropy in their new
scheme-that is, the philanthropy that
means giving something for nothing,
as a charity; it is strictly a business
operation. 1t is an experiment that |
need not say will be watched with a
good deal of interest as a means of
lessening the friction between the in
terests OF capital and labor. The plan
are TO declare the net profits of the
concern every six months; for this pup
pose they arc to have free access to
the books hnd papers at all times, and
thoy are to permit the employees to
designate book-keeper to make an
examination for them also. In deter
mining the net profits, interest on
all capital invested is cal
culated as an expense at the rate of
six per cent, and a reasonable salary
is allowed to each member of the firm
who gives his entire time to the bust
ness. In order to share in the profits
the employe must have been at work
for three consecutive months, and
must be at work when the semi-annual
account is made up. All the men
share whose wages have exceeded S. a
week, and all the women whose wages
have exceeded 1925 a week. The
proportion divided to each employee is
determined by the amount of wages
earned; that is, the employee shall
share as between themselves in
the profits exactly as they
have shared in the entire fund
paid as wages to 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
Except to travelling statesmen, who do
not share) is ascertained. The amount
of all expenses, including interest and
salaries, is ascertained, and the total
net profits shall be divided between
the firm and the employees sharing in
the 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 as compared with the
entire cost of production and the
expense of the business. To
Illustrates: If the wages paid
to all employees shall equal
twenty per cent. of the entire expend-
iture 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 steadiness in work, stimulates
industry, and adds most valuable
element of hopefulness to labor As a
business enterprise for the owner it is
sound, for it makes every workman an
interested party in increasing the prof
ITS of the firm-interested not only
in production, but in the market
ableness of the thing produced. There
have been two divisions under this
plan. At the declaration of the first
the workmen had no confidence in it;
many of them would have sold their
chances for glass of beer. They ex-
pected that ''expenses" would make
such a large figure that nothing would
be left to divide. When they received.
as the good workmen did, considerable
sums of money, life took on another
aspect to them, and we may suppose
that their confidence in fair dealing
was raised. The experiment of a year
has been entirely satisfactory; it has
not only improved the class of en-
ployes. but has introduced into the es-
Enlistment spirit of industrial cheer
fulness. OF course, it is still an ex-
pertinent. SO long as business is good,
all will go well; but if there is a bad
six months and no profits, it is impos-
sibie that suspicion should not arise.
And there is another consideration: the
publishing to the world that the bust
ness of six months was without profit
might impair credit. But, on the other
hand, this openness in legitimate BUSH
ness may be contagious, and in the end
promotiye of wider and more stable
business confidence. Ivorydale 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 semi-annual dividend
amounted to about an eighth increa co