Freeland tribune. (Freeland, Pa.) 1888-1921, 1892-11-28
SHARING PROFITS.
EXPERIENCE OF A BOSTON PUB
Usher WITH THE SYSTEM.


over the profit sharing principle with a
view of trying it practically in the pub
fishing house of CHM & Co. Last year
we informed our help that we would
share with them to certain extent the
profits for the coming year, and at the
close of the year we divided with them
a sum that raised their salaries some
thing over per cent. We have received
in return for this division the most cor
dial recognition from our people, as will
be seen from letters submitted below,
samples of the many that come to us,
and the assurance on their part that the
firm will lose nothing by its action.
The basis on which we made the di-
vision was wholly in favor of the clerks.
They were to share in the profits but not
in the losses of the business. Any scheme
that does not include both to some ex-
tent, it seems to me, has not a safe foun-
dation. We are trying to work out some
scheme that shall include slight risk
in the loss, as well as a sharing of the
profits, giving even larger chance of
advantage than our present scheme,
something like the following: To limit
the loss or gain of the clerks to or 10
per cent of their present salaries, or to
place them all on the basis of partners,
allowing the total amount of their sala-
ries as the amount of money they con-
tribute to the business, and taking their
full share of the profits, in accordance
with the same, on this basis. AS an
illustration, suppose the expense of the
business, including the manufacture of
the goods, amounted to half million
dollars, and the salaries of the help
amounted to $50, 900; the help would re-
ceive one-eleventh of all the profits, as
they contribute one-eleventh of the cap
ital.
feel more strongly, think, than Mr..
Farwell that in some adjustment of the
profit sharing with all classes of laborers
will be found the solution of the much
vexed question between labor and CAP
ital. Now capital hires its labor as
cheaply as it can, and labor on its side
contributes only as much as it can afford
to for the amount received. The great
majority of laborers are dependent on
their daily earnings for the necessities
of life and therefore cannot remain idle,
but must accept such wages as they can
obtain. Capital has decided advan-
tage in this respect. In other respects
1t suffers great disadvantages, for the
laborer that feels that he is contributing
more than he is paid for is not profit
q ito1n
have this antagonism with its labor.
The only way out of it will be some ad-
justment whereby a portion of the risk
in the profit and loss of the business will
depend upon the laborer, which will act
as a stimulus for him to put in his best
work every hour. One of the most COM
petent and honest men we ever had in
our employ once told me that since he
had commenced business for himself he
made longer hours and worked harder
than he used to on salary land yet"
said he, eff you had even limited that it
was possible for me to do more con-
scientious work than when | was with
you on salary l should have felt in
suited"
II thank you most sincerely for this
substantial check which | have Just re-
ceived," writes another employee, 'and
wish to assure you that your generosity
in thus sharing with us the profits of the
business is deeply appreciated. You
surely have the right to feel that you
can count upon our earnest, loyal devo-
tion to the interests of CHM 65 Co., and
to expect that the results of the coming
year will be even more satisfactory than
those of the year just closed. l hope to
contribute my share toward this sue
cess"
Here is another: 81 have received my
share of the profits and wish to thank
you for your generous gift. Aside from
all personal interest, believe the ex-
pertinent has been undoubtedly produc-
tive of great good, making as it does
each employee feel that he or she has
direct personal interest in the welfare
and success of CHM g. Co."
81 am in receipt of your letter of the
18th inst. with inclosed check. 1t came
in the nature of a surprise" writes a
third, "for though l looked for some
thing was not prepared for so generous
a gift. Please accept my most sincere
thanks.
"You ask for an expression of opinion
as to the continuance of the plan for
another year Undoubtedly the thought
that the success Of the company means
the success of the employee acts as an
incentive. Identity of interests cannot
fail to bind every member of the force
to you. 1t did not need the extra
amount received today to make me loyal
to CHM & Co, and command my best
ability, but I do feel now like redoubling
my efforts to advance their interests.
81 happened to be in the office TODAY
soon after the clerks received their
checks. If you could have seen their
pleased faces and heard their express
sions of delight it would have been
worth good deal to you. Indeed one
would be sadly lacking if he failed to
appreciate the gift and the motive which
prompted it.
"It is frequent remark of superin.
tendents and teachers everywhere that
the generosity of CHM & Co. in the dis