The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1889-03-08
SOCIETY REFORMS ITSELF.

GVVyk bB&s ObSWsO tsO
The solution Of the Labor Ques-
tion in Progress.
r.slure Of the Fiat Gsnsy Agfss-
tsos-Result Of the prohibit
tfonSsts' Ensrts.
EDWARD Atkinson In March Foxura.
The advocate OF cooperation holds
cat the expectation Of great benefit 70
the community By the adoption Of
hat system, especially when applied
d, distribution One may ask those
vho prefer this method, II you desire
20 cooperate, Why do yoa not Coz
operateg There il nothing to prevent.
except the enc fact which il common
n overlooked, namely, that the small
margin of profit which nov sufsices To
maintain the great shops Of this conn
try. dealing upon the cash SYSTEM and
mon the principle Of large sales and
small profits. leaves little or nc frae-
Ton 10 be saved by those who choose
70 cooperate In some other way than
BY buying at such shop. The high
81 city rents are paid By the great
shopkeepers for warerooms in central
locations, In order TO be able 20 dis
tribute goods at the lowest cost. be-
cause such places are most convenient
Ter their customers. The customers
save more time and Iaa.r for
themselves BY going to these great
shops ia the trade centeYs. on which
the highest rents are paid, than they
can save for themselves by going long
distances TO small shops widely scat
tered, or BY attempting 10 share the
small margin Of profit by going into
the business OF cooperation. Ii Is
aIso probably an error to suppose that
tie big shops eat up the little ones.
The vast increase in the mass OF COM
modifies TO be distributed In recent
years makes the big shops necessary
To do the additional work. while what
are now small shops in the smaller
cities would have been great shops IN
what we're the great cities 30 or 10
years ago. The largest dealers de
their work at the least specific charge
or profit on each transaction; 1t is
only In the small shops. especially In
those giving credit, that the cost Of
distribution Is high In proportion 20
the amount of business done. At q
recent convention OF the representa-
tises OF cooperative distribution in
Great Britain. where long credit, even
AL L. 10
dered high cost In distribu-
profit saved and diyisible among
II per cent. on the gross sales. II is
on q cash basis sell at lower prices
than the private shops. Where is the
great shop in any city In the United
States in which the net profit Is even
half OF IL per cent on the gross sales ?
The largest fortunes are made on q
much smaller margin OF profit. On
the other hand, the rents, charges and
expenses of the great shops, large as
they are in the aggregate, come TO a
very small percentage on the gross
sales. while in the management OF the
separate departments oil these great
Establishments. large numbers Of men
attain success as business men who
have failed In their attempts To trans
act the same business wholly on their
own account.
The operations of the great banks
are probably conducted at the least
margin OF profit on each transaction,
as compared with all other branches
OF commerce. Ii Is for this reason
that in all times and in all places.
since banking became one OF the neces-
sary factors OF commerce. the highest
mental qualities of Judgment, pru-
dence. aud foresight, as well a. the
highest moral qualities of honor,
probity, and truth have been called
Tor and have been found in those who
have conducted the great banking
houses OF the world. On the other
hand, there is no trtler standard by
wnich to measure the general intelli-
gence and integrity, or the want Of
these characteristics, III given COM
munity, than by tde support or OBJ
strrction which It's members may give
to the establishment OF q weil-dc-
yelaped SYSTEM Of banks and banking
We may therefore ask the advocates
OF cooperation. Would your method
increase the general product or de-
crease the cost of distribution so that
each one might get more for his 50
cents than he gets nowg Can you save
ANYTHING in the general cost of distri-
button? III you can, why do you not
cooperate So far as legislation Is
concerned. the way is open.
Another proposed panacea is that of
proiit-sharing. In one way this has
been an established method ever since
the factory system was introduced
Payment BY the piece is bat system
Of proilt-sharing without imposing
upon the workman any responsibility
Tor losses. II lies at the very founda-
ton OF the rule that large earnings are
the correiatiye or complement of
los cost of production; IL
y also conducive 10 greater profit |
IN any branch of industry To which IL |
can be applied than employers can Sc
cure by any other method Profit |
sharing in this way is, however, very
different from the conception of those |
who advocate il as more lust
method of distribution than the pres
ent system. IL is commonly assumed |
that the share which now falls to capi- |
tai under the name OF profits L. very
large, because such profits have been
ss%S ScAANS va thAaf tttat AtAlf 4aaa1
fortunes. In this again IL is not safe
10 reason except on the basis of facts. |
In many arts the share, or profit, fall |
ny 10 the capital invested may be |
equal 20 the whole sum of wages paid |
cut in the conduct OF the work: vet |
this profit may be but very
small fraction on each unit @ |
product, and may represent |
but very moderate percentage upon
The capital used, in proportion to the |
risk taken. In almost all the primary |
rFocesses in the production of metals. |
nmany branches OF Woodworking,
and in the textile arts, the capital re |
CURED IN the mills or works comes 10 |
NoN or more for every man or wo- |
man employed, Heavy stocks of ma 1
terial must he carried, from oneshalf
70 saree-fourths OF the value OF the |
finished product may consist OF the |
cast OF materials purchased, and the |
Total annual product may not much |
ssceei the.amount of capital invested. |