Rock Island daily Argus., 1888-10-19
THE GODIN FACTORY.
METHODS OF THE COOPERATIVE
ESTABLISHMENT AT LIEGE.


tion-Division Between Capital, Labor,
Talent and '.Nature"-How the Stock |
Changes Hands-Results
As with his social palace, so in his scheme |
of industrial distribution, NJ. Godin's ideas |
were colored by Fourierist recollections. |
Before 1880 NJ Godin had merely set apart a |
certain sums, 900 or e10,000-out of the |
profits of the year to be distributed among
his men as bonus; but in 1880 he converted
the business into commandite company, and
introduced a complicated system of arrange
ments for realizing effectively Fourier's prin-
ciple of a just division of the produce of in
dustry, the division between capital, labor
and talent, according to the Importance of
their several contributions 1t is true he
thought this principle theoretically defective,
because talent was only particular kind of
labor, ami because nature, which Fourier
wholly ignored, was, in Godin's opinion, as
important contributor to production as any
of the other three Natures share in the di-
vision ought he thought, to be appropriated
by the state, partly by means of the nation
alization of land for the purpose of letting it
out to all sorts of productive societies, and
partly by means of heavy graduated sue
cession duty and the funds thus obtained
ought to be employed in establishing sys
TEN of universal insurance against sickness,
accidents, age and vicissitudes generally
But in the meantime, so long as the laws of
private inheritance and private property in
land remained unmodified, and the state
showed no disposition to serve herself heir to
natures share, individual producers must
each set aside that share for themselves, and
consequently the first part in NJ. Godin's an
nual division is 25 per cent. of the whole net
profits to a reserve fund for purposes of per
sonal insurance. In passing l may say that
besides this every workman is obliged to pay
TO that fund per cent. on his wages, that in
1883 the fund amounted TO 100000 francs,
and in the thrte years it had existed at that
time more than $1,000 francs had been paid
out of it for sick relief and pensions on
comfortable scale.
Next to natures deal comes the deal of
talent or intelligence, and that also is fixed
at 25 per cent. The director alone (M Godin
during his lifetimel got and gets u per cent.
of the profits, in addition to his salary of
1900 francs. In 1883 this 12 per cent.
amounted to more than four times his salary.
Half the profits going thus in equal shares to
nature and intelligence the other half re-
naming to be divided between the factors
capital and labor Capital had already re-
ceived 5 per cent, interest, and labor had Of
course already received its weekly wages, all
before there was any calculation Of profit at
| all, and NJ. Godin concluded that the proper
| principle now was to give capital a share Of
| the remaining half of the profits in proper
ton to the amount of interest it received,
and labor IN proportion to the wages it had
| received. In 1883 the total amount of interest
! paid was $4,000 francs on 4,600,00 francs of
capital, and the total wages paid was 1,SSS, 600
francs, so that of this remaining half of the
| profits some nine-tenths go to the deal of
labor
| NJ. Godin's scheme, however, by no means
ends here his object was to make the en-
ployes in the final result owner of the
| capital of the business, and with this view he
decided that the laborer's share of the profits
should not be paid Immediately into their
hands, TO be used at their discretion, but
| should be applied to buy for them shares in
| the business. In this way the business is
| gradually falling into the hands of the labor
ers engaged in it In 1888 they already pos
seSsed stock amounting to nearly two millions
of francs, and though the capital has been
raised to 5000, 900 francs, 1t will only take q
few more years for it to be acquired entirely
| by the employees. The interest on the shares
they possess they receive like their wages, to
spend as they will
NJ Godin states, in his book on govern
ment, that the average amount of indirect
taxation on articles of consumption paid per
head in the familistere of Guise is seventy
five francs, and turning to books of statistics
We find that the average for France generally
is only thirty francs The people of the
fanilistere live, therefore, two and half
times better than the rest OF the French
TheiI working day is ten hours, and they
have besides common holidays, two special
fete days OF their own every year-the Feast
of Labor on the first Sunday in May and the
Feast OF Infancy on the first Sunday in
September.
The director, who at the head of the whole
place, is an autocrat in all business affairs.
He is eleeted-that is, since 1Ss0-but he is
elected for life and his management is uIl-
controlled. lie chooses the foremen and makes
the bargains. Next below him stand the
group that elect him, the associes, numbering
Sixty-eight in 1885, who must have worked at
least five years in the foundry, be men Of
good education and stainless life and possess
not less than 500 francs of capital in the
business. Their privileges are large, like
their requirements, They elect themselves
by co-optation, share in the profits on twice
their wages, can only be expelled from the
association by vote of two-tnirds of their
own peers (the other associes), have the first
right to work when work is short and retire
on pension Of two-thirds of their wa es OF
salaries. After them come ninety-tive so
cietaires, chosen by the manager and admin
istrative council, sharing the profits on one
and one-half times their wages, and getting E
pension on one-third of them; $40 partict
pants, similarly chosen, and sharing on theil
simple wages only; 25s auxiliaires, who a
yet get no share III the profits, except through
their interest in the insurance fund, and 2Si
inueresses, who are allowed to retain stocl
they have inherited, though they have NJ
further interest in the concern.
The stock, which is cnly being gradually
taken up year by year, must, when it is al
taken up, be again parted with in the sam
way, the frs shareholders being then obligeC
to sell out their shares to the new comerS
| During the interval the shares may anpar
emily be held by widows or other persons 10
in active employment, but at the end OF th
term they must always return TO the posses
sion Of actual laborers, and so the way
smoothed for the retirement OF the older gen
Grafton and tie accession of the younger
Good Words,