The advocate., 1892-05-25
as COOPERATION PRACTICABLE 2"

some of the organizations OF a co-opera-
tive nature, which are best known, and
now in successful operation. Among
these are some notable cases of idustries
conducted on the profit sharing plan;
the founders thereof having voluntarily
extended to their workmen opportunities
to become partners, instead of employees.
The financial success of these has
demonstrated the fact claimed by the
founders of said Industries that busi-
ness can prosper and return good profit
on the capital invested, and accord to
labor also fair share in the profits it's
hands produce. The oldest and
probably the WealthleSt of these In
stltutlons is the great iron works at
Guise, France, established by Godin,
which for over thirty years has demon
strated the profits and benefits to be
reaped from the cooperative system OF
production. II Is said to be q social,
educational and pecunlary success" }" fur
nishing TO the workers steady income,
good home, good food and clothing,
baths, schools for their children, libraries,
reading rooms, and societies for mental
culture, also sklllful medical attendance
in sickness. An insurance system has
been adopted, Covering every misfor-
tune and amply providing for the old"
The great co operative home at Guise,
called the "Famlllstere," Is said to shell
ter and furnish all these advantages to
1900 people. The value Of the entire In.
dustrlal plant Including several branches)
is estimated at several millions of francs.
A very promising and thus far success
ful business enterprise on this line, Is that
Of the N. o. Nelson Manufacturing COM
pany, of st. Louis, Missouri. From re-
liable sources we have secured the fol-
lowing statements in regard to this COM
pany and others In the same line Of asso-
clated effort:
Profit sharing was inaugurated by the
N. o. Nelson Manufacturing company, on
March 6, 1896, TO take effect on the 1st of
January preceding. The plan was outlined
by Mr.. Nelson at the time of the first an
nouncement in March. At the close Of the
year the profits were to be divided as fol-
lowp: First, the capital invested was to be
allowed the lowest market rate of interest,
which in 1886 was per cent. Second, 10
per cent. of the balance Of the profit was to
be set aside as guarantee fund to provide
against losses in bad year. Third, a Ger.
tain sum was TO be set aside as fund for
the relief of sick and disabled workmen
and the relief of their families and of the
families of deceased workmen. The rest of
the profits was to be divided among the
workers according to their earnings and
also according to the amount of their stock,
everyone being accorded the privilege Of
investing the dividend on his earning in
stock. Employees, who had not served the
company six months within the year, we're
to be excluded from the profit sharing.
SOME OF THE RESULTS.
This plan, as then outlined, has been fol-
lowed, with only few immaterisl changes,
ever since. The first year the company
paid the workmen a dividend, which
amounted to 5 per cent. on their earnings;
the second year, 10 per cent; the third year,
per cent; the fourth year, 10 per cent; the
fifth year, 10 per cent, and the sixth year.
the year 1897 per cent. Most of the 900
employees have become stockholders, and
have been drawing on an average nearly 16
per cent. on their stock. The men who
bought stock with their first years profits
a. kha close of 1896 have reoeived intareat ON