The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-07-16
TO PREVENT STRIKES.
Profit and Loss Sharing Pro-
posed by a New League.
A SUCCESSFUL TEST CLAIMED.
First Manifesto OF the Equitable League
The lie Claire system as Tried
at lie Claire, Ill.

The recent labor troubles have turned
attention anew 10 the adjustment of the
relations OF labor and capital on a more
satisfactory basis, and the result has been
the preliminary organization in this city
of what is called the Equitable League.
About 100 members are said TO have al
ready joined this body. which proposes to
combine both employer and workman in
an effort to secure 4 more equitable distri-
button of the price of their joint product.
A committee, of which G. A. LAFAYETTE,
president of the Western Central Labor
Union. is chairman. was appointed at one
of the preliminary meetings and prepared
the following manifesto:
IAN association has been formed under
the name OF the Equitable League which
has tor its object the sole purpose of &C
complishing the equitable distribution of
created wealth among those who create ii.
No destruction of present social conditions
or individual property rights is contem-
plated; on the contrary. il is believed
that these conditions must continue to
exist, that is, that the ann aud ambition
OF people should remain with the same
source of qualification. What is attacked
by the organization Is the inequitable dis
trIhution of all wealth as II is created, by
constituting the whole created wealth to be-
long exclusively to one only of the agen-
cies of its creation.
The broad ground is taken that the ad-
vancement of liberty on the part of the
many has been: First, from dictatoriai
slavery TO physical freedom, or rather
freedom in the choice of masters Sec
ondly, our recognition of the equality
of all men; that is, that birthright
or family gave no peculiar rights, power
or privileges. There now remains out the
mancipation from the theory that to the
few belongs the joint product OF both the
few and the many. While the market
may in q measure determine the current
price OF labor, II Is contended that that
alone should not be the remuneration OF
labor. 1t should be allowed 10 share in
what labor Is as necessary to create as
capital. The theory of the relation be-
tween labor and capital is in substance
that capital says to labor:
You devote your muscle, brain and
skill toward the creation or production of
certain article. While you are thus
engaged / will provide you the means
of subsistence
Each having done it's share, a given
thing is pfoduced. The profit of that
labor, maintained for the time being,
should be property, and the profit of both
in proportion us the one or the other forms
the greater part of the produced article.
The subsistence Of the emp owes should
be provided for and the profit of that
work should come to labor in diyi-
dends, just as II goes to capital upon
the realization of the profit. After lat
distribution the individual property rights
of each remain, subject only to the equit-
able distribution of wealth created by il
later on. The only change is that labor is
recognized as having higher rights than
mere market wages. The present theory
is the outgrowth of all existing conditions.
it is not part of our statute law. The
property rights now asserted and main
tanned by our courts which give to and
recognize in capital ali ownership of the
product of labor and capital, are q part of
the old common law. Hence concerted
action can modify the present condition,
incidental to the main principle and
necessity OF its successful operation In
many cases, is the determination of what
is capital. 0ver-capitalization, speculative
creation OF so-called capital, is not real
capital or wealth. be it in a railway, a
sugar refinery or any other institution
Capital is bona iide wealth, the representa-
tive cost OF labor sustained in creating the
necessary thing"
The league so far as formed includes in
its ranks not only workmen but employers
and some professional men who are in
terested in economies, and will in about a
week hold an open meeting to lay its pro-
gramme fairly before the people.
AS will be seen from the manifesto, the
object is TO promote the adoption of the
profit-sharing system with the addition Of
loss-sharing as we'll. aud TO influence leg
islation in favor of that system. This sys-
TEN. il is claimed, would put the relations
OF capital and labor on such an equitable
basis that all excuse for strikes would be
done away with and labor would be given
the best possible incentive. seli-inIerest, to
faithful service.
The proht-sharing system. as adopted by
its pioneer, lie Claire. tine Paris decorator,
has been put in successful practice with
notifications and improvements at a town
named lie Claire, IN Illinois, which was
founded about seven years ago. This town
now has population of 1000 to 5000 all
of whom worE under the profit-sharing
system. the principal industry being the
manufacture Of plumbers supplies. The
employees are paid the current wages for
their labor aud the employer is allowed
the current rate of interest on his capital
with a salary as manager, and at the end
of the year the profits are distributed be-
tween capital and II Dor on an agreed bais.
II the years operations should show a loss
the em pioyes' share would be deducted
from their wages, but the advocates of the
system saw that such a thing has never
been known IN the whole history of the
town, the workmen's annual dividends
having been equivalent TO an advance in
wages ranging from 10 10 80 per cent Yet,
the books beng opeH 10 the workmen as
stockholders, they would have clear evil
dence OF the loss and. 1t is claimed. they
eonld not object TO bearing their share
of IL