Omaha daily bee., 1891-01-18
A PLAN OF PROFIT SHARING.
Employees in Manufacturing Establishments
Prefer it to The Wage System.
PARTNERSHIP OF LABOR AND CAPITAL.
The Cooks Union-Active Engineers
Painters and Decorators-Let-
ter Carriers Ball Local and
General Labor News.

In number OF the manu- featuring estab-
lishments in this city the employees are try
ing to induce the employers to adopt the
plan of profit sharing instead of paying
wages as under the present system. That is,
the men put their labor against the capital Of
the firm and thus become partners.
n. o. Nelson Of st. Louis, who runs one Of
the largest manufacturing establishments in
the west, has tried the plan, and in speaking
of its workings, to his employees, says;
"E'ive years ago we began sharing profits
between capital and wages. There had never
been any trouble between US. The house
has been prosp porous since its foundation. Its
policy was satisfactory to you and us. We
adopting the cooperative system. We
we we since, e'' impressed any y'' conditions TONS
or restrictions. We have not asked longer
hours nor harder work. We never inquired
whether you belonged to unions or favored
protection or free trade, Most Of you under
stand the method of division, but for new
corners 1T may be appropriate to here reiter-
ate it, The business is managed by directors
and officers, like any other corporation. We
pay regular wages, just as any other manu-
featuring house. Both to salary men and
factory men we aim to pay the best of wages
so that we may get the best of men. Our
foremen are under standing instructions to
paw az ledSu as nlucn US Is paiu 1Or ike WORK
| in similar establishments. All capital in
vested is allowed q per cent, as if wages
| Having ascertained what the net earnings Of
| the year are, we set aside one-tenth for sur
| plus fund to meet losses in Improbable
years. From onetenth 20 one-twen tieth goes
| to the provident funu, which is under the
| control of a committee elected by yourselves
| We then make an equal dividend upon capi-
| tai and the total amount paid for wages and
| salaries, Each man gets the same
| dividend on his wages that he
would on similar amount of
stock. When his dividend is converted into
stock 1T receives its interest and dividend
| just the same as the capital owned by the
| original proprietors. During the five years
| in which the system has been in operation we
| have paid 43 per cent in dividends on wages,
| besides the considerable amounts paid out by
| the provident committee and the amount Of
surplus fund accumulated to meet further
contingencies. Those of you who have taken
| all your dividends in stock have received, as
| interest and dividends thereon, 81 per cent
| on the first years amount AZ per cent on the
second, 32 per cent on the third 16 per cent
on the fourth, besiues compound dividends on
the first three. Nine hours constitute days
work in this house, with full pay Believing
ten hours too long days work, we short
ened the time, first to fifty seven hours a
week. and later to fiftv-four hours. During
the past busy season-for about four months
the hours were by unanimous consent made
sixty hours week. When orders were
pressing, it seemed sound policy to try to
meet them. The dividend of the past year, as
verified by your representative, is ten per
cent for which stock certificates will be
handed you in Que time.'