Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1890-05-15
LABOR AND ITS SHARING.


begun in many cities in this countr,
and is causing such agitation abroad, il
only cropping toward change in tn,
division of profit. Often blinded, bu
not rarely with eyes open, labor is trying
to obtain for its share more than the
share taken by the capital and the man
aging and directing faculty. Mr. Pow,
derly, Grand Master of the Knights OF
Labor, while declaring his sympathy
with the eight-hour movement, says that
it will be completely superseded as an
issue when profit-sharing has been estab-
lished. Then the workers having a
definite interest in increasing the profits,
will want to work not eight hours, but
ten or even more, if they can with full
efficiency. But Mr.. Powderly's philo-
sophical observation still overlooks the
fact that there is profit sharing already,
and that labor already has direct interest
in the profits of the work in which it is
engaged, though often ignorant of it,
The vast body of industrial and eco
nomic information accumulated in recent
years has brought to the world no more
valuable fruitage than the certainty that
wages and profits tend already toward
an equal division of the results of labor
1t is already great partnership, of
which one or both parties may be un-
conscious, though both are forced into
it by the immutable laws of the Creator.
Capital stands on one side with manag-
ing ability, and an opportunity to es-
tablish an industry. Labor stands on
the other side, and without it capital
can make nothing. as labor also can
make nothing without the capital and
management. The natural division in
such case is a sharing of profits; to
labor half, to capital and management
half, for each is equally necessary to the
other. The statistics accumulating year
after year in multitude of industries
prove that the tendency is constantly
toward this equal division. In particular
branches of industry, where the proper
tion of capital required is largest, or
where exceptional ability in management
is necessary to success or exceptional
risks are involved, the proportion taken
by labor falls below half. In others
where the labor required is especially
skilled or the capital relatively small, |
labor takes more than half. But all in
dustries considered, the tendency is |
toward recognition of the fact that labor |
is exactly as necessary to capital and |
as capital and management |
are to labor.
1t seems to many that this blind |
of natural laws is sufficient |
They think it blind, though universal
laws ever have infinite foresight. 1t is
not perceived by them that if injustice
is done in any branch of industry, laws
more powerful than men can make tend
TO right it. Here capital takes too much;
the exceptional profits draw
more capital and management into that
/
profits. There labor takes too much: as
/ result the business becomes less profit
ible than others to capital, and the
number of employers Shrinks, and pres
,ntly the labOrerS are forced to bid
against each other for employment, and
10 wages fall. In the long run the ad-
ustment is so irresistible that the richest
of capital have been crush
ID by it, and the most powerful organiza-
ions of labor have gone to pieces when
heir demands have been a shade beyond
easOn. |,
Profit sharing would substitute visible
or invisible division. The men share
low; then they would be compelled to
NOW that they share. Their returns for
abor depend now in the long run upon
he aggregate value of products realized
" labor and capital; then they would be
orced to see that smaller products means
mailer profits to be shared. Profit
haring would teach the worker that the
between the labor and capital
) equally necessary to both, but it is not
he less real partnership, and not the
ess equally necessary to both, though
ither party fails to perceive the fact.
f the laborer could see now all that
rofit-sharing could teach him, he would I
ealize that reduction of product means I
Inevitably reduction of wages; but until ,
e sees he must struggle forward un-
eeing toward the light.