Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-07-17

and disastrous to existing methods. But
these directors had not acted hastily. The
subject was carefully discussed more than a
year. A very simple plan was finally
adopted which avoided the Objectionable
feature of exposing the books and accounts.
The employees should share with the
stockholders.
A sum not less than per cent of the divi-
dends to be paid during the next six months
should be divided among the employees at
the end of that period in proportion to the
amount of wages earned. 1t is estimated
that this would give each employe sum
equal to the interest upon the full amount OF
his wages if placed for six months in saw
ings bank. Everyone, whether man, woman
or child, was given the chance to share upon
the single condition of faithful and continu-
Gus service for six months. The plan was
explained to the overseers aud others, and a
circular letter was distribute to all. 1t
was tavorablv received and the scheme went
into operation July l, 1889.
A Success When Business Is Good.
1t was a most hazardous time to inaugur-
ate such an experiment. Profits were large
and subsequent events have proved that it
was the elimination of the cycle of pros
perlty. A cool critic remarked at the time:
profit sharing may be we'll enough when
business is good, but what will be done
when there are no profits to share?" There
are about 40 competing cotton corporations
clustered in the same town with a combined
capital of about go, 100000. The average
rate of dividends in 1889 was reported to be
within two points of 10 per cent. In 1891
it averaged considerably less than per
cent, and eight Eten of the corporations
paid no dividendAt all The wave of pros
perity crested in 1889 and was followed by
a very low tide in 1891.
1t is difficult to determine the exact in
fuence of new experiment, for nobody
knows what would have happened if some
other course had been pursued. Too much
must not be claimed for profit sharing
from the results in this case, which is still
only an experiment. The directors act
upon it every six months. This they have
done already seven times. They make no
promises beyond that time. Whatever may
happen in the future it is assured that none
of the evils predicted three years ago have
yet come to pass. Nothing has occurred
to disturb the relations of any other corpor-
alton with its employees on account of this
experiment. Thus far the experiment has
been successful beyond expectation.
During the lowest ebb the pro6t-sharing
corporation paid its stockholders regularly
to its employees semi-annually over per
cent upon their wages Nothing succeeds
like success.
The Profit Sharprs Laugh Last
It may be worth noting perhaps that the
loudest denunciation and sharpest ridicule
three years ago came from some of the man.
ayers who happened to pay no dividends in
1891. Rira bien qui rira lie dernier. While
it would be absurd to say that this e1traor-
dinarv disparity was entirely due to profit
sharing, it must be allowed that generous
policy in business counts for something, and
the interested cooperation of 500 employees
can scarcely be thought an Insignificant
factor in the success of any concern.
Profit sharing deserves fair trial The
ory and experience so far favor it. A wise
self-interest will carefully consider it.
Labor and capital should pull together with
united interest in mutual success. Profit
sharing affords the opportunity.
'The help get all the profits now," says
dissatisfied stockholder. This remark was
often heard during 1891. The stingy truck
man exclaims, "What! give that horse more
oats-he eats up all my profits now"
Never mind, try it Give him few
more-just few. Let him feel his oats
and see if it does not pay. Employees are
called help; give them a personal interest
in the success of the business and see if
they do not become helpers
GEORGE A. CHACE
FALL RIVER, MASS, July II.