Huntsville gazette., 1891-01-03
PROFIT SHARING.
Success of the Experiment as Tried
at ST. Louis.
The Panacea, when Honestly and Intel
hgentiy Administered for the Troubles
Between Labor and Capital
Five Years. Record.

ST. LOUIS, Dec. 30.-The n. O. Nell
son Manufacturing Company has just
held its fifth annual meeting since the
proft-sharing plan went into effect
The great warehouse and store-room of
the concern was closed at noon, and all
hands, from the president of the COM
pany to the Office boys, numbering
over two hundred people, took special
train on the Clover Leaf Line and visit
ed Edwardsville, ILL.,, where the new
industrial village of LIE Claire is
fast rising on the grounds which
SIX months ago were covered by
wheat-feld and orchard. The
party were greeted on arrival by the
blowing of steam whistles. The shops
there We're in full blast, and every ma
chine was kept going for half an hour,
In order that the st. Louis men might
examine them while in motion. The
work being done there is the making of
bath tubs and bathroom cabinet work.
After looking over the machine shops
the party separated in little groups to
examine the eighteen or twenty neat
residences and the club house which
have been erected in the village. They
found the clubhouse, with it's spacious
reading rooms, filed with boarders who
are working in the shops, and
who live there comfortably and almost
luxuriously at four dollars per week,
the men hiring housekeeper to run
the place, and all bills being audited by
a committee selected from their num-
Der. There is wood fireplace in the
reading-room and the house is lit by
electricity, and has all the modern i'm
provements and comforts. A visit was
house, where refreshments were served.
Returning to ST. Louis the annual
meeting was held. Mr.. Nelson made an
address, reviewing the results of the CO.
operative system during the five years
of its existence, an abstract of which
appears below. Mr.. Nelson said:
EMPLOYEES AND FRIENDS-Five years ago
we began sharing profits between capital
and wages. There had never been any
trouble between us; the house had been
prosperous since its foundation; its policy
was satisfactory to you and us. We had,
therefore, no business reasons for adopting
the cooperative system. We did not then
nor have we since imposed conditions or re-
strictions. We have not asked longer hours
nor harder work. We have never inquired
whether you belonged to unions or favored
protection or free trade. Prospective diyi
dends have been the pretext for lower wages.
Our foremen have been instructed to pay
the highest current wages paid for similar
work.
call your attention to these facts at this
time in order to make it clear that profit
sharing is not coupled with burdensome or
humiliating conditions. We adopted this
plan because it seemed to us right. What
man works for should be his, and no elabo-
rate sophistry of wages fund or of supply
and demand can impair this principle of
justice. 1t matters not by what ingenious
system of law or of force the shrewd and
strong absorb the results of other mems
efforts, it is oppression and wrong. 1t is not
benevolence, but justice, that the man asks
who lives by the work of his own hands.
Is his product measured by the wages
which he gets? Has he no equity ex
cept that of a contract made under the
duress of necessity? Have we no dispute
with the man who reaps lordly income
from the midnight stitching of sad faced
women? The dense fog of money making
does not blind us to humane obligations.
We put the brand of Cain upon the man who
imperiously declares that he is not his
"brother's keeper
Mr.. Nelson then drew comparison
between cooperation and competition;
told of the labors and victories of LIE
Claire and Godin: showed the i'm
portance of realizing the fact that no
man lives to himself alone; that linen
must not be so unfair as to claim rights
while avoiding their duty counseled
the defense of just rights after duty had
been fulfilled, and continued as follows;
For the first four years under this plan
we paid divide nds in cash, giving sin ply the
privilege of investing dividends in stock,
so desired. 1t has thus been made clear to
you that the dividends were reality, that
they were not simply manipulations on pa
per- At the beginning of the present year
we gave notice that thereafter, the directors
reserved the right to pay dividends either in
cash or in stock. This business needs all its
earnings to develop its factories and meet
the requirements of a growing trade. No
dividends upon the capital have ever been
withdrawn. All the earnings, except what has
been paid to you in dividends, have been re-
tanned in the business Your directors have
decided to pay the dividends for 1880 in
stock of the company, and this Will be the
policy of the future. There is now large
part of the capital of the house in the hands
of men who have earned their stock by divi-
dends on their wages and salaries. 1t is our
desire that this proportion should continue
to increase so that in time the business Will
be owned and controlled by the men who do
its work.
Most of you understand the method OF d.
vision; but for new corners it may be appro-
pirate to here reiterate it, The business is
managed by directors and officers like any
other corporation. We pay regular
wages, just as any other manufacturing
house. Both to salaried men and to factory
men we aim to pay the best of wages so that
we may get the best of men. Our fore
men are under standing instructions to pay
at least as much as is paid for like work IN
similar establishments. All capital invested
is allowed six per cent. as its wages. Having
ascertained what the net earnings of the year
are we set aside one-tenth for a surplus fund
to meet losses in Improbable years. From
one tenth to one-twentieth goes to the provl-
dent fund. which is under the control Of
committee elected by yourselves. From this
fund all the sick and needy are amply pro-
vided for. We then make an equal dividend
upon capital and the total amount
paid for wages and salaries. Eacn
man gets the same dividend on his
wages that he would on a similar
amount of stock. When his dividend Is con-
yerted into stock it receives its interest and