The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1888-08-23
AcO.OPERATWE EXPERIMENT.
An Interesting Description of the CO.
Operative Labor Experiment at
IyorydaIe, Cincinnati

Operative Labor Experiment at
IvorydaIe, Cincinnati.
II would teach Us nothing to follow
in detail the fluctuations of the vari-
Gus businesses in Cincinnati, either in
appreciation or decline, but it may be
noted Iat it has moro than held its
own in enc Of the great staples-leaf
tobsceo-and still maintains leading
position. Yet | must refer 10 one of
The industries for the sake of an i'm
pOrtant experiment made in connec-
ton with it. This is the experiment
of proft-sharing at Ivorydale. the es-
tabllShment OF MeSsrs. Proctor and
Gamble, now, | believe, the largest
soap factory in the world. The soap
and candle industry has always been
large one in Cincinnati, and it has
increased about seventy-iive per cent.
within the past two years. The pro-
prietors at Ivorydale disclaim any in
tension of philanthropy in their new
scAene-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
teiests of capital and labor. The plan
Is this: Three trustees are named who
are to declare the net profits of the
concern every six months; for this pur-
pose they are to have free access to the
books and papers at all times, and
they 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 calculated as an ex-
pense at the rate of six per cent, and
a reasonable salary is allowed to each
member of the firm who gives his en-
tire time to the business. In order to
share in the profits the employe must
have been at work for three consecu-
tive months, and must be at work when
tlre 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 $4:25 a
week. The proportion divided to each
employe is determined by the amount
OF wages earned; that is, the employees
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 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
proportion of the whole net profit
which will correspond to the proper
ton of the wages paid as compared
with the entire cost of production and
the expense of the business. To illus
tTate: If the wages paid to all en-
ployes shall equal twenty per cent. of
the entire expenditure in the business.
including interest and salaries of men,
bers of the firm, then twenty per
cent. of the net profit will be distri-
buted to employees.
twill be noted that this plan pro-
notes stcadiness in work, stimulates to
industry. and adds a most valuable
element of hopefulness to labor. As n
business enterprise for the owners it is
sound, for it makes every workman an
interested party III Increasing the
profits of the tirm--intsrested sot only
in production, but in marketa bleness
Of the thing produced. There have
been two divisions under this plan. At
the declaration of the first the work
men had no confidence in it: many of
them would have sold their chances
for glass of beer. They expected
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 year has been en-
tirely satisfactory; has not only i'm
proved the class of employees. but has
introduced into the establishment a
spirit of industrial checrfulness. OF
course it is still an experiment. So
long as business is good, all will 90
well; but if there is bad six months
and no profits, it is impossible that
suspicion should not arise. And there
is another considerations: the publish
ing to the world that the business of
six months was without profit might
impair credit. But, on the other hand,
this openness in Legitimate business
may be contagious, and in the end pro-
motive of wider and q 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 amount
ed to about an eighth increase Of
wages. A girl who was earning five
dollars week would receive as divi-
dend about thirty dollars year. !
think it was not in my Imagination
that the labOrers in this establishment
worked with more than usual alacrity,
and seemed contented. If this plan
shall prevent strikes, that alone will
be as great benefit to the workingmen
as to those who risk capital in en-
ploying them. Charles Dudley Warner,
IN HGrper'S Magazine.
A Pen Sketch OF Austria's Emperor.
A correspondent describes the EN-