The Londonderry sifter. (South Londonderry, Vt.) 1883-19??, 1895-06-21
THE LONDONDERRY SITTER.



Any change In the methods Of conduct.
ing the productive and distributive busi-
ness In the world to be successful and
generally adopted, must first and last have
in 1t that which will tend to lessen the
cost of such production or distribution,
However desirable profit sharing may ap.
pear to us from other points of view,
this is the essential principle upon which
its success or failure depends. Unless
the employer increases the efficiency of
his labor under the proft-sharing plan to
at least the extent of the profits so paid
to his labor, he should not, as business
prop >stion, adoptit. II, however, the
reverse is true and he increases the etfi-
cheney of his labor to an extent greater
than the amount so paid to 1t, 1t is as in
cumben. upon him to adopt the profit
sharing plan as 1t is to put in an improved
piece of machinery, remembering also,
that it is the first who in adopting i'm
proved methods secures the greatest re-
ward. If proht-sharing can show that
where it is honestly and considerably ad-
administered, it is the means of develop
ing in the employe that feeling of self
interest In his labor which will tend to
secure the same thoughtful and honest eff
forts as tho he were working for him
self, then it has demonstrated its right of
hn;p h. al, lat. g Low
is that the root of existing troubles lies
in the feet that the employee takes no in
terest in his work and has no considera-
ton for his employers property or well
fare.
Now, how can profit sharing prove its
ability to produce this change in the en-
ploye's feelings? If it can be shown in a
manufacturing establishment continuing
under the same management, even down
to practically the same foremen of de-
partments, that since profit sharing has
been introduced, strikes and labor troub-
les are unknown, where before they were
commons that the waste of material has
been reduced one-half; that the number
of employees leaving the employ; or being
discharged for cause during the year has
been reduced to one third the number so
doing prior to the adoption of the system,
and that the actual labor cost OF manu-
facture, including in such cost, the a
mount of money paid to employees as the
profit sharing dividend, has been lowered,
then we think profit sharing will be JUS
titled in claiming that it has supplied that
motive to self-interest in the employees
work, which is now admitted to be so
sadly lacking.
1t was during the year 1886 that the
Knights of Labor began to assume such
prominence, and employees in manufact-
uring establishments throughout the
country became more or less restless.
During that year the firm of Proctor &
Gamble, soap manufacturers, Cincinnati,
had in their various departments no less
than fourteen different strikes, having at
different times from eleven to one hum
dred and fourteen of their employees quit
work in a body, and for all sorts of trivial
causes. They were continually at the ex-
pense of breaking in new people, and the
After considerable hesitation, it was de-
cided to put into force plan of profit
sharing and to secure, If possible, SOME
| relief from these troubles. 1t was de-
| cided to allow as a portion of the ex-
pense of manufacturing, reasonable sal
| airy to each active member of the firm,
| and to divide the remainder of the net
profits between the firm and the EN-.
ployes in the proportion that the labor
cost of production bore to the total cost
| of production. In other words, if the
sales were 100000 and the net profits
| after deducting the salaries of the firm
| 500 then the total cost of production
would be 100000. Assuming that the
amount paid for wages was $4,000, thcl
the $4,000 of profit would be divided
seven.ninths to the firm and two-ninths
to the employees.
The proposition when made to the EN-
ployes was accepted in half-hearted way
and without any belief upon their part
| that it would be of material benefit t
them. At the end of the frs. six months
a dividend of II per cent. upon the wa
yes was declared. During the next six
months there was evidence that some OF
the employees were beginning to take ,
little inter est in the working of the plan
and in order to encourage them and tt
reprimand those who did not take an in
teIest, the plan was adopted of dividing
the employees into four classes, the trs
| class getting double the regular dividend
and including those who showed unmis
| taxable signs of appreciation of the fac
that it was incumbent upon them to hell
make the profits. The second class re
| ceived the regular dividend and included
the bulk of the employees. The thirt
| class were chosen who did not evinc'
much interest in the plan and whose div
idend was one-half the regular amount
| The fourth class were those who fo
cause were cut out of any dividend at all
They continued working under this plal
for two years, by which time they ha,
managed to weed out the majority o
those who took no interest in their work
and since then have had only two classes
those who share and those and those VIII
do not. The total amount of profit-shar
ing dividend is not affected by the numbe
of those sharing. If for any reason W
are compelled to decline allowing an EN-
ploye to participate, his share is divide
| amon, the others