The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-04-04
PROFIT sHARrSG


tons are depressed. and the relations OF
capital and labor are somewhat strained,
any efforts which tend to bring the en-
Yaoyer and the employed closer together
for mutual benefit are interesting 10 note
ard worthy OF study.
Eugene V. Debs. when here recently.
sad that society originally existed under
rhe feudal system. when ehe strong ba-
ron In his castle was the ruler OF
as much land as he could control, ana
the owner OF all the peasant serfs In his
little kingdom. that the feudal system
was merged into the competitive system
OF today. whereby the weak were ground
down aud crushed under the force OF
great Accommodations OF capital. and that
the present competitive system would ul-
tmately be changed for what he believed
would be the perfect system OF co-opera-
ton.
Ar. Dsbs may not live to see his bekef
fulfilled, but there is no doubt that the
right kind OF cooperation would do much
TO solve the labor problem. Human sell
fshness Is the cause OF much bitterness.
The altr9sstIc doctrine OF leach for the
other Is one. which. II practiced. would
bring the millennium very near.
To show that profit-shar.ng can be made
successful for both the employer and en-
ploye, Frank w. Blaeksnar has written
an article for the March Forum. He says
there are a number OF notable examples
OF protit- sharing In the United States,
ard that there are now more than 10, 90
workmen in this country who are admit
ted to a share OF the profits in the sew
eral industries in which they are engaged.
Profit-shardng enterprises have not been
successful in all instances, but the faal-
ures are largely due 20 unfavorabie cir
cumstances and a lack OF Intelligence
and zeal. Mr. Biacknnar describes very
fully the working Of two notable exam
pies OF profit-sharing--the Proctor e.
Gamble Soap Company. at Ivorydaie. o..
and the NJ o. Nelson Manufacturing
Company. makers OF machinery, near St
Louis.
The firm OF Proctor & Gamble, estab-
lshed In 1887. was changed IN 1880 TO a
stock company with 100000 capital
stock. The company owns seventy acres
OF land. and factories filing twenty-four
buildings. Four railroad hines are direct
~ connected with the property. The CON-
pany employs about 800 laborers at the
and on the road. Soap making does not
require much skilled labor, consequently
the rate Of wages Is lower than in facto-
ries where a higher grade OF workman
ship Is required. These laborers put IN
iifty-flve hours a week, and the average
wages of men are SO per week; OF women.
$40. and of boys. from $3.50 to s.. All
wages are paid by the week. Under the
plan now In force at this factory the en-
ployes receive the same rate OF dividend
on their wages as is paid on the COM
mon stock or the company. The divs-
dends are paid senri-annuaily. AS an a.
lustFation. IL a man earns 500 year In
wages, he receives a dividend OF II per
cent. upon this amount, or SEQ. II a man
holds 500 worth OF stock In abe company
he receives l. per cent. on the stock. or
$50. Thus the laborer and the Stockholder
are on an equitable basis.
All employees are enGtled TO begin 20
share In the dividend after being IN the
employ of the company for three months.
All employees are on the same basis, and
fully % per cent. OF them now participate
an the profits. The company encourages
It's workmeu 70 acquire part OF the cap
stal stock. and the terms upon which they
may get the stock are very easy. The
company Is now considering plan 20 go
step farther and guarantee the en-
ployes who hold stock against boss upon
thelr inVeS; msnt. Another important fea-
ture OF the plan is the pension system
for thu benefit OF employees. This fund
IS maintained by setting ASIDE $500 semi
annually. one-half or which IS taken
from the profit-shar.ng dividends. and
one-half Is paid by the company. PEN
SONS are paid 20 any employee who has
been tn the service OF the company not
less than seven years when partial or to-
tai disability 20 work has been caused
by accident. sickness or old age. There
was Ss0@a IN mat pension fund on jan
uary !. 1895. and bat one penssoner on the
rolls The Proctor & Gamble company
admits that during the arst two years
proHt-Shar!ng as 4 money making scheme
was not successful out as the men he
came convinced that they were treated
with Justice they became more careful
AMI earnest in their work. and the sue
cess - the plan has more than exceeded
The expectations OF the company.
The gain Is In a saving OF time. IN 81
ns.nish8uE the waste OF material. In max
! ing a better quality OF wares In keeping
men % experience. and a saving in over
sight These ara tas principles which
have been maintained by advocates q
proat-Saarlng. ana she instance cited
proves eAas actual practice ooinctdes with
the theory.