Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-10-20
ABOUT COOPERATION
How the System of Proft-Sharing
Was First Put in Operation.
WEALTH FOR THE wAGE-WORKER
And Reconciliation Between Capital and
Labor Its Result.
THE QUESTION OF TIE DAY IN AMERICA
WRITTEN FOR THE DIsPATCH.I

Not long ago a statement was published
coming from President G. B. Day, of the
New York Baseball Club, to the effect that
no system of cooperation had been success
full. Beside being prominent man in base
ball affairs Mr.. Day is leading business
man, and what he states publicly has con-
siderable influence That Mr.. Day was
mistaken in his statement I shall fully
prove, and in adducing the proof have an
other object in view.
desire to draw public attention to sys-
tenn of cooperation which in my opinion is
destined to be the only key that will solve
the very important and burning question of
the unequal distribution of wealth. If
the facts and opinions which follow
these few words of introduction will
prompt consideration of the subject by
employers and workmen then certainly
some good will have been accomplished.
The system OF cooperation to which draw
attention is industrial partnerships, or, as it
has latterly been called, proft-sharing. In
my estimation this is the very highest and
fairest form of cooperation.
The idea of industrial partnerships origin
ated with Babbage, an English economist,
but the putting of that idea into practical
OpSIdblOu was cuIIIely uut W Eume-Oedn
Leclaire, Frenchman. The story of how
Leclaire came to adopt the principle of
profit sharing is probably one of the
most interesting in industrial history. At
the age of 26 he set up in business for him
self as painter and glazier, and two years
later undertook his first contract to paint
and glaze block of seven houses for 81, 600,
having started with capital of only 5000.
He started on his work BY paying his work
men % cents per day more than current
wages. This really was the key to LecIaire's
future success. He got the very best kind
of work done and when the job was finished
he had cleared 81, 200. Leclaire's fortune
was now made, for the Paris architects be-
gan to run after him and in 1884 he was en-
ployed on the Government buildings and
Bank of France.
A woMAN's APPEAL.
Leclaire's wife now urged him to trv and
do Something for his workmen and the ap-
peal was not in vain. although it took him
seven years, from 1885 to 1842, to elaborate
plan. This was the kind of calculation
he entered into: 'I asked myself"
said he, could workman in
our business, by putting more heart
into his work produce in the same lapse
of time-that is, day, a surplus of work
,
that is, II cents? Could he besides save
cents dav by avoiding all waste ofthe mate
rials entrusted to him and by taking greater
care of his tools?'' The answer was in
the affirmative. and if one workman
would do that 300 would gain
Sl5, 900 per year. Leclaire, therefore, saw
that he could not only benefit his workmen,
but also himself by sharing the profits. He
adopted the system in 1S42 and it has been a
great SUCCESS ever since. Although Leclaire
is dead the "Maison Leclaire" still is
fourishing and has a capital of
more than 100000. In connection
with it is a mutual AID society, from which
employees are amply supported in old age.
two managing partners jointly, the senior
partner taking two-thirds, the junior one
third; one-quarter goes to the mutual aid
society; the remaining half is divided among
the workmen and others employed by the
firm, in exact proportion to wages earned.
Now, the above is very brief statement
of the most successful application of the
proft-sharing principle. But there are
other proofs of its success. My friend Mr..
Sedley Taylor, who has spent years in the
of facts relative to the system IN
question. gives us many convincing proofs of
ITS SUCCESSFUL OPERATION
Among other instances of its success he
mentions, he states: "Proft-sharing has
existed in the pianoforte manufacturing
of NJ. Bord, at Paris, since
1865, on the following basis: At each an
nual settlement interest at 10 per cent on |
capital invested in the businessis deducted |
and handed over to its proprietor, NJ. Bord. |
The remaining profits are then divided into |
two parts, respectively proportional, the one |
TO the sum already allotted as interest to |
capital, the other to the whole amount |
which has been paid during the year in |
wages at the current market rate. The |
former part is added to Mr.. Bord's receipts;
the latter is divided among all such work. |
men as have been employed by the house
or not less than six months of the year in |
question:" Several hundred thousand dol |
ars have been paid over as profits by this
irm.
The Company of General Insurance, Paris.
s successfully operated on the same princi.
Die, and so is the printing, publishing and
establishments of Chalk & Co.,
Paris. The Paris and Orleans Railway
Company has practiced profit sharing since
944. The principle has been success ully
Ipplied in almost every branch of business.
)f course, there are instances Of where it
las been adopted and abandoned. This
vas done at the collieries of Messrs. Briggs
Co., at wildwood, near Normantown,
England. The responsibility of
he breakdown, however, can in no way be
to any defect of the principle.
Well, now, having established the fact
hat the principle of proft-sharing is sound
nd beneficial to employer and employed
like, the question is, can it not be tried in
he United States? 7 think it can, and if
yer there was suitable field for its sue
essiul operation, that field is America. It
system of cooperation that is not in the
east tainted with socialism. Co-operation is
ivided from most modern socialistic schemes
v advocating no disturbance in private
roperty, by insisting on self help, and by
bhorring State help and all unnecessary
Interference with individual freedom. OF
purse am aware that cooperation has
luch sympathy with and has learned
luch from modern teachers of socialism,
ut the broad principles are distinct
roft sharing in no sense retards competi-
on, but inspires every man to
oung has very wisely said: !
The magic of property turns sand into gold
nd a barren reach into fertile garden" ,
gives each workman an in
rest in the property and establishment
here he is iaboring, and this fact is
imulus for him to act as If he were really
joint owner of the concern. In this con-
ection I think 1 cannot do better than
lote Mr.. Taylor's own words. He says:
RECoNCILING CAPITAL AND LABOR.
"a good participating house is animated
? a remarkable spirit of unity and indus
ial peace. The inveterate antagonism ,
hich, under the ordinary system of re-
unerating labor so frequently prevails be- q