Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1888-09-19
DIVIDING THE PROFITS.
CO. Operative E1perlmant q Crest and


DIVIDING THE PROFITS.
j. CO.Op0retive ExperlmGnt 81 Crest and
Far Reaching Value.
1t 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 that it has more than held its
own in one OF the great staples leaf
tobacco-and still maintains leading
position. Yet l must refer to one of
the industries for the sake of an i'm
portant experiment made in connection
with it. This is the experiment Of
protit-sharing at Ivorydale, now, be-
lieve. the largest soap factory in the
world. The soap and candle industry
has always been largo one
in Cincinnati, and it has in
creased about seventy-fve per cent.
within the past two years. The pro-.
priotors at Ivorydale disclaim any in
tention of philanthropy in their new
scheme-that is, the philanthropy that
means giving something for nothing,
as charity; it is strictly business
operation. It is an experiment that I
need not say will be watched with q
good deal of interest as means of
lessening the friction between the in;
terests 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 CAL
culated as an expense at the rate of
six per cent, and 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 employee 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 1926 week. The
proportion divided to each employee is
determined by the amount of wages
earned; that is, the employe 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
Illustrate: 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 a glass of beer. They ex-
pected that Expenses" would make
such large figure that nothing would
be left to divide. When they received,
| eao WAC SOOu WI h"ou u1us 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 a spirit of industrial cheer
fulness. OF course, it is still an ex-
pertinent. So long as business is good,
all will go we'll; but if there is a bad
six months and no profits, it is impos-
sible that suspicion should not arise.
And there is another consideration: the
publishing to the world that the BUSH
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
promotive of a wider and more stable
business confidence. Ivorydale is one
of the best and most sOlidly built in