The Indianapolis journal., 1891-04-13
PROFIT SHARING In EUROPE
Some of the Results Reached Under the
New System in England and France.
Methods Pursued by Different Firms in Both
Countries-Beneficial Alike to Labor and
Capital-An Interesting Exhibit.

There never was time when the atten-
tion of so many intelligent and practical
people has been attracted By the different
phases of the labor question as during the
past few years. Higher intelligence on the
part of the wage-earner and q better ap-
probation of intelligent labor by employers
have resulted in many concessions- Intel
hgent and progressive employ ers have
proved that they attain the best results
from labor which enjoys the comforts OF
civilized life and feels the stimulus which
the accumulation of savings gives The
millions in the savings banks of the manu-
featuring States of the East. owned by the
labor employ ed in them. are the best possi-
BILE assurance of their future. because they
insure an intelligent and thrifty body of
employees.
One of the devices to benefit and interest
work people in industrial institutions is
proft-sharing. 1t has not been extensively
tried in this country, but where it has been
introduced and pursued with intelligent
method the results have been satisfactory.
Under the instructions of the administra-
tion to the foreign representatives of the
United States to inquire into and report the
industrial conditions of other countries.
sulgeneral New, ut London, has just
sent the State Department an exhaustive
report of the workings of protit-sharing in
Great Britain, compiled from q report Of
British official. In England the term
proft-sharing is used in preference to indus
trial cooperation. 1t takes various forms.
In some establishments q gift or bonus Is
presented to the employees at the end of
given period. In others. certain per-
centage of the profits is paid into prov1-
dent fund for workmen in sickness or old
age Another and more popular form 10 to
setapart from the profits percenta ge to be
used In giving the workmen an interest In
the business. A fourth method 10 70 pay
fixed percentage of the profits to the work
mon as extra wages.
ORIGIN OF THE IDEA.
In Great Britain theidea of profit-sharing
started with distribution of bonuses to
the managing staff. But it has been ex-
tended by number of establishments to
the ordinary laborers. This feature of profit
sharing is increasing every year in Great
Britain. The preserve-factory of Hartley,
at Liverpool, practices this plan of inter
estiDg employes. Mr.. Hartley has always
sought to maintain relations of paternal be-
neyolence with his work people, mum bering
BRIT! bTiay. "a wensarrangsd APARTMENT ne Il is pro-
vided, where 500 persons can have their
meals cooked and consume them in COM
fort. All the arrangements of this establish
ment Indicate an employer who has been
anxious that his prosperity should rebound
to the well-being of his work people. Three
years ago ne announced his inten-
ton to set aside a portion of the
profits each year. to be distributed amongst
the most deserving of the workers in such
sums as he and his managers might deter
mine. and this system. he finds, has stimu-
lated the interest or the workers in the
concern.
eral and popular than the stock sy stem in
Great Britain. A recent plan adopted by
the Bushills of Coventry, printers and sta
tioners, is to have dividend on wages.
for the remuneration of the capital and the
management is taken out. The remainder
is distributed according to the proportion
of wages received by the workmen. But
only one-third of the dividend is paid in
cash. The remaining two-thirds is put to
the credit OF the workman in provident
fund. If the wage dividend is found to
exceed six weeks wages the excess is
turned into a reserve fund. which bears
per cent interest. The purpose of the re-
serve fund is to provide dividends for bad
gears If there are no bad years. and the
reserve accumuiates steadily for five years,
it goes to the provident fund. This plan
has been in operation two years. ct the
end of each year the dividend has been six
weeks wages to each employee, and at the
end of the second year further dividend
equal 70 i've days wages was carried to the
HAZEL, Watson 81 Viney, Of London.
have different plan. They take out of
their profits ten n-per-cent- dividend on the
capital and provision for their reserve
fund. The remainder of the profits are di-
ylded equally between the capital and the
labor of the firm. Half of the sum allotted
to labor, or one-fourth of the whole net
profit. is paid in cash. and the other half Is
put to the credit of the employe in
provident fund. More recently q separate
plan, whereby employees may acquire inter
est or shares in the business, has been
added. Mr.. Hazell, with English blunt
ness. said they did not pretend that the
concern was philanthropic institution.
lt was q business institution, carried on
for business purposes; bnt they tried to act
90 that there should be no i'll feeling be-
tween employer and employed. but thor
ough and complete beartiness and concord.
They wanted all to have an abiding inter-
est In the firm"
One of the most recent and notable addi-
tlOns TO the list of English pr0fit-sharing
firms is that of Clark, Nickolls 81 Coombs,
London confectloners. This establishment
pays over Sl50,0C0 In wages yearly. It has
this year adopted a plan of protit-sharing.
The net profits, after a dividend at per
cent. on the ordinary shares of the COM
pany. are divided into two parts, of which
one Is TO 90 to the ordinary shareholders
in augmentation of dividend; the other is
to be q percentage on wages and salariss
paid. All the recipients of wages and
salaries who on the 3lst of December last
had been one year IN the employment of
the company shall receive this percentage
In cash. The wages percentage accruing to
persons not so qualified shall beinvested In
shares OF the company, these shares to be
set apart to form provident and sick fund
Tor the benefit of all persons In the employ
ment of said firm.
RECENT EXPERIMENT.
A celebrated recent experiment. is that of
the South Metropolitan Gas Company. The
proposition offered the men was that they
should sign a contract to remain in the en-
ployment three months. In return for this
the company agreed TO give a cash. divi-
dend to the sIgners, dependent on the cost
of gas manufacture. The promise was
that this dividend should be one per cent.
on the wages for every penny less than 2s
Sd, which the gas might cost to manufac-
ture per I. 900 feet Some 1.5O0 men earning
weekly wages accepted the proposition
Every one of them. OF course, became inn
mediately interested in seeing the cost of
manufacture decreased as much as possi-
bic. Last June the first distribution took
place. and the amount was $4,000. Since
then nearly the entire force has signed the
agreement. The chairman of the company
in explaining how the system operates
SAID:
"One decided advantage TO the company
from the working of the proft-sbaring
scheme has haen fha deaire On the nm m a m a RI