New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-11-06
Az ECONOMIC EXPERIMENT.

An interesting report was sent ont from Fall
River few days ago OF the dividend made To
It's employees by one OF the large mills Of that
city. The corporation referred TO had made n
good profit during the year. and. under the profit
sharing arrangement that II has had In force for
seven years. set apart for division among It's
workmen 10 per cent OF the dividend declared
on its stock. The amount was $500 which
was apporioncd among about 400 operatives. ac
cordnc 10 the wages they received. This re-
suit obtained In n year Of depression. may be-
regarded as n distinctly successful outcome Of
scheme that even now cannot be called more
than an experiment.
In It's general outlines the Fall River plan pro
vIdes that all employees Of the corporation may
participate in It's benefits except the treasurer
and bookkecper They must signify their inien
ton Of working under 1t for six months before
the dividend would be due; must agree to work
steadily. unless sickness prevents. and to avoid
unreasonable qnarrels with their snperiors.
Furthermore. they must make regular deposits
In bank OF some portion Of their savings. Tn
der these conditions between two hundred and
three hundred Of the operatives OF this mill have
taken part in the scheme annually since II was
started The dividends paid TO individual work
men have varied In amount from SO TO $50 semi
annually. These sums are. OF course, In addi-
ton to the regular wages, which are those
scheduled by the Cotton Manufacturers Asso-
citation.
This record Of successful trial takes Its place
alongside of numerous records or other similar
experiments tina; have been made in the last
twenty or thirty years, both here and abroad,
but that have by no means had uniformly IA
vorable results. In fact there has always been
something more or less tentative about them.
Many have been abandoned for one reason or
another. sometimes after several years Of APP
parent success The details Of these industrial
partnerships" as they have been called. have
differed widely. but in general the principle at
the bottom Of them all Is thai by the prospect
held out Of receiving share of the profits. work
ngmen will he induced to aid in increasing thos"
profits by greater industry In performing the
tasks set before them. and greater care and
economy in the use Of machinery and raw ma
terinl.
II this were the only factor entering into the
|. successful conduct Of business there would bc
no doubt but that such workmcn. by their eff
cheney. greater than the average I'm their trade.
would earn each year "a share in the Increased
| profits resulting therefrom. Unfortunately, the
| complexities OF modern business prevent the full
| realization OF such antlcipations. The balance
| OF profit and loss TO the right side depends not
| mainly upon the hard work and economy OF OBJ
cratlves. but upon the sagacity and executive
l. skill centred In the counting upon the con-
| dltiOns Of general trade; upon the protection Of
the industry from the destructive effects Of for
eIgn competition. The weakest spot In the sys-
tenn OF Industrial partnership. AZ has often been
pointed out, Is found in the fact that. while work
lngmcn can share profits In successful years.
I they cannot share losses In years Of disaster and
depression. Further, the Employer. having
parted with some OF the profits Of tho good years
is less well able to withstand the strain of bad
years; while the cmploye having worked faith
fully perhaps. for the expected profits, finds
that he is deprived Of them sometimes by an-
Others ineffciency at any rate through no fault
| Of his own.
! Other objections have at times appeared In
| actual practice. some Of which have been met
Others have not been. and have resulted in the
abandonment Of the arrangement. The profit
sharing Idea presents many attractive features
and many promising possibilities to the student
OF labor problems; but It seems never to have
| taken welldefned place in the world OF bust.
ness. or to lave lost certain flavor of philan
thropy and paternallsm that has worked against
Its widespread adoption. The Fall River expert.
ment appears to have avoided the vital din.
culties 20 far; perhaps it, continuance under