The Indianapolis journal., 1891-04-13

firms in England, employing about 10000
people. The plan of each varies somewhat,
but the foregoing plans embrace the essen
tial features. The general results have
been much the same. Manufacturers VINO
have trIed the experiment for a consider
able number of years agree that 1t devel-
ops q higher order of efficiency. produces
larger profits, and brings about better reia-
tions between employer and employe. Ex-
perience has proved that the cash bonus is
not only the first step, but that share
holding must be developed slowly. No
single plan can be devised for all kinds ana
conditions. That which will work admir-
ably with an intelligent and thrifty class
of men will not be adapted TO those who
live from hand to mouth and whose
thoughts have never been turned toward
acquiring an interest in the business be-
yond their wages.
THE RESULTS IN FRANCE.
The report gives the results of some of
the experiments in profit-sharing in
France. which began in 1S4S, long before
any attempt was made in Great Britain.
Eighty-one firms representing a variety of
industries some of them having thous sands
of employees. now practice profit-sharlng.
Some of them say that it more than pays
for ITSELF that is the decrease of waste of
material, the superiority of the work. di-
minished cost of superintedence. the stabil-
ity of the force of employees. and the in
creased practical information of the work.
men have increased the profits more than
the amount paid as bonuses. etc.
Leciaire. who has built up a great fort
uLe under the system, Ia regarded as the
founder of profit sharing in France. He is
engaged in the house painting and decorat-
ing business in Paris. His first step was to
pay extra wages to good workmen. Then
he gave bonuses for the best work. The
n
wOrkmen. In 1912 he had got so far as TO
pledge himself to divide q certain portion
of the profits of the coming year among the
workmen belonging to the society he had
organized. The following February Le-
claire redeemed his promise by dividing
$3.50 among forty-four workmen. Five
years later the number of workmen with
whom Leclaire was sharing his profits had
| doubled, aud the amount distributed among
| them was over 8. 600. The Leclaire business
| has grown to enormous proportions. At pres
| ent the plan is to set aside from the gross
| profits 5 per cent. on the capital. This
/ leaves the net profits, of which 80 per
cent is distributed in cash to the work
men. % per cent. goes to the management
| and 25 per cent. is paid into great provi-
| dent society, which has, by the gradual ac-
| capital of the firm. The idea of cash dis
| tribution of profits Leclaire at length car
| ried so far that II man only worked day
/ for the firm he was entitled to something g
4
| end of the year. In 1870 the number who
| participated in the distribution of $4,000
was 75S, and the amount paid them was IA
| per cent, or about One-seventh of the
wages they had received for the whole
| year. In 1884 the profits distributed were
| S46, 1000, and S24 workmen received "a per
cent, or about one-fourth of the wages
| paid them for the year. Besides this cash
/ distribution, at the end of each year the
| workmen had the satisfaction of seeing the
| great pr0vldent society grow In wealth.
! Leciaire's experiment is considered the
| greatest IN the history of proft-sharing.
| The pioneer worked first to gain the con.
| oped bis system slowly and carefully.
| While all of the employees share in the
/ yearly cash distribution, 1T takes years of
| work under the firm to entitle an emplOye
! to membership in the great provident So
4 ciety, with all of it's benefits.
| One more Of several notable experiments
| cited In the report which have been re-
| markable successes in France is that of the
LarOche-Joubert firm. which has practiced
| prott-sharing over forty years. The teat-
ure of this system is that the whole dlvi-
dend ls paid In cash. A way is provided by
/ which the workmen may become stock
| holders, but 1T Is entirely voluntary. None
| of the profit is withheld for the purpose of
making the workmen stockholders The
| capital of this concern is 81 00000 and it's
| employees number 1000 About one-fourth
| of the stock is held by the employee The
1 eJb VI uibtTlDutlDR tuc pTOHtS Is oidD-
crate and peculiar. The length of time q
| workman has been with the frm Is taken
| into account as well as the wages he is re-
| ceivlng. Thus a man who has been with
| the firm ten years gets larger share of the
| profits than a man who has worked five
| years. although the wages of the two may
be the same. In the past ten years this
| firm has paid out cash dividends on
wages S225, ,000. The dividend has ranged
| from to IL per cent. of the wages from
| year to year. If q workman is receiving z
| $500 year in wages he gets at the end of
| each year from $50 to $50 IN addition. NJ.
| Laroche-Joubert says that one of his
| brothers so strongly objected to profit-shar-
| ing at the start that he left the business
| and set up for himself. But not succeed
| ing. he was glad to come back and be ad-
| mltted to a partnership. The firm bought
| aph his business, and the mill which. with
out prOtit-sharing, was failure, is now q
successful profit-sharing member of the
| group of factories.