Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1894-07-19
PROFIT SHARING.

Profit sharing is the ideal method by
which to secure proper division OF the
product OF capital and labor and whereby
the relations between employer and en-
ployed may always remain harmonious.
Cooperation has not proven as successful
as its enthusiastic promoters OF Il quarter
OF a century ago anticipated. As long as
there was fair weather, and no jealousies
arose as to who should handle the helm,
the ship Of cooperation sailed proudly
on. But when storms or dissensions
arose its instability was shown; there was
no one strong hand OF power or authority
to control or to give backing to the enter
prise.
Because OF its being, at its inception, a
philanthropic movement on the part OF
the employer, the rise of profit sharing
has been slow, and has not therefore at
tracted the attention which it deserves.
Wherever tried, however, it has proven
its ability to meet the situation, and as
its benefits become more generally known,
benefits alike to capital as we'll as labor,
the very selfshness OF human nature will
lead to its universal adoption. Its grad
ual adoption by some OF the large estab-
lishments in this country has led to the
formation Of an association for the promo
ton Of profit sharing, and which held its
second annual session in New York re.
Gently. According to the report OF the
secretary there are about 125 establish
ments in France which have adopted
profit sharing, so in England, and 100 in
America, which is slight gain over the
preceding year. The report gives an illus.
tration Of the workings Of profit sharing
in the case OF the n. O. Nelson manufac-
turing company, Of st. Louis, Of which it
says:
After six per cent has been set aside as
the commercial rate OF interest on capital,
and allowances have been made for the
reserve and provident funds, the remain
ing profits are apportioned in dividends,
two per cent on wages and one per cent
on capital. Last summer the manage
ment asked the men to work full day
for three.quarters wages, on the condition
that the one-quarter wages should be paid
back as soon as the state OF business per-
mitted. This proposition was accepted
by the men with cheers" In October
full wages were resumed again, and the
inventory at the end Of the year showed
sufficient profits to repay the wages fore
gone, although not enough profits to de-
clare any wages dividend. This is the
first time that wages dividend has been
passed since the company first tried profit
sharing in 1886. The fact that the com.
pany did as we'll as it did, despite the
hard times, is due, SO Mr.. Nelson testified,
to the extra exertions OF the management
in pushing their goods into new territory,
and to making easy terms OF payment,
to which last the willingness Of the en-
ployes to forego part Of their wages con-
trbuted largely
1t will thus be seen that from Il purely
business point OF view profit sharing is an
advantageous arrangement for both CAPT
tai and labor, and without the disadvant.
ages OF cooperation, Bellamyism or any
other ism. BY its operation the dangers
arising from the concentration OF capital
would be minfed, and the more equal
distribution OF the product OF capital and
and labor attained.