The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-05-31
MR.. BENEFITS PERPLEXITlEs.

The New York Herald of May "a has
come to hand with Mr.. Benefits revela-
ton of his purposes regarding the DISPOSE
ton OF his paper. In the bitter vein
which he affects he denies the truth of the
stories which have been current regarding
the transfer of the property to corpora
lion, but admits that
The present proprietor has IN view the forma-
ton OF cooperative society, bat one for the
sole benefit Of the members of the Herald
stan, Including the general manager, city edt-
tor news editor, night editor, all editors, cor
respondents reporters, artists. cashier, clerks,
toremen press and composing rooms, proof
readers. compositors printers, exchange read
ers, shipping clerks, telegraph clerks, adVertls-
Ing clerks. messengers, pOrters, fremen.
machnisrs-for they are all members OF the
Herald staff, are they not?-and not for any
stockjobbing or speculative purposes, as has
been done so often In England and America.
This cooperative society may be formed at
any moment by the proprietor whenever he
thinks proper.
The difference between this plan and
the plan which Mr.. Bennett was supposed
to contemplate is that "the members of the
STAFF would share in the profits of the
paper without possessing share in its
ownership. This plan has been adopted
in many industrial enterprises in France,
where Mr.. Bennett lives.
When Mr.. Bennett was a boy, something
over thirty years ago. his father, the
founder of the Herald. was once attacked
by severe fit of illness, and it occurred to
him that if he died the valuable property
which he had built up with so much labor
might be placed in a precarious position.
than fb0nOht IF ttoii zip
aid, keeping in his own hands fifty-nne
Der cent of the stock, and permitting his
employees to buy the other forty-nine
per cent at so low a price that they could
IN time pay for tn cir interest out of their
earnings. AS it turned out, the founder
got better, and dropped his scheme He
afterward sold the paper to his son for
dollar, and thus avoided the danger of a
contest over his will. 1t has been under
stood that the present James Gordon Ben
nett cuntemplates similar disposition of
his property in favor of his nephew. the
son OF Isaac Bell. But he is such sphinx
that no one knows his real purposes.
The organization of a cooperative So
clety on the basis of the Herald would be
attended with the advantages of all &C.
operative societies, and would be open to
the objections which have been made to
all. An employer will always be likely
to get better work out of an employe who
is not only paid wages, but who draws a
share OF the profits of the enterprise, than
he can out of one whose interest is limited
to his daily or weekly stipend. But the
position OF cooperative workman is an
omalous. If he shares profits he must
also share losses. He must, In fact, be-
come partner. And though in the man
agement of partnership enterprises the
preponderance of interest governs, yet
still minOrities have rights which may be
asserted in a disagreeable way. No man
has right to impair the value of his
partners property by mismanagement. If
he does. the courts will redress the griev-
ance. Thus, while Mr.. Benefits scheme
might induce the bulk of his staff to give
him better work. it might also tempt some
OF them to give him good deal of trouble.
AT the present day most large enter
prises are handled by corporations in order
to avoid the complications which arise
when a member of private partnership
dies. 1t would seem that, on reflection,
Mr.. Bennett will be apt to Incorporate his
paper, aud to place it ON the same basis as
the New York Tribune and the Times. But
the step would involve difficulties 10 an
other part of the article quoted above Mr..
Bennett says that by adopting certain
economies which he specifies the Herald
could be made to pay 6 per cent on twenty
millions-in other words, that it would be
worth twenty millions in cash. If he cap
italiZed ii at that sum and reserved nine
tenths of the stock for himself. tenth
would be left for his "staff" Would he
sell them the stock or make them present
of it? 1t is highly improbable that the
gentlemen on the Herald payroll would
find il their clothes two millions or any,
thing like that sum and if he gave them
the stock it would eventually drift into a
few hands. and its owners would not be
likely to remain permanently in the
service of an eXacting employer. Thus
the proprietor might find that he had
given lot of money to people who were
not at all conscious of duty of gratitude
and who were not in the least disposed to
return an equivalent for the gift,