The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-11-08

THE FAMlLlSTERE GALE
he socie :aire on the basis OF one and q half
times his earnings. and the participant only
year. So also when it comes to slack times,
the preference of employment is given to the
Tie full,bearing: of this class distinction is not
seen until it Is remembered hat the mem ers
and ablest, receive the biggest wages also.
The wages system has been ret lined in its
snt Ip r the he men men , wSrki RSj, hSO how msT:r o as far
committees are provided for, who, with the
managing council. regulate the matter. ANY
tendency to raise wages unduly at the EXPENSE
Of profits has been successfully repre.sed by
The men. of the first class have cxclu sive
control OF the s%ociety's affairs, They COMPOSE
and committees, and admits members from
the class below the grade OF associ&. There
part to keep pot others eS1ae out tR h H their PI profits IS might light
statistics of fifteen years show that while
piled. and the increase has been almost wholly
gained on the auxiiiaries. the sociStaires on
the participants. and the associes On the 10
OF Sis'n the first st ci inH 't eon:t ii 3D. a. "a % per eeat.
OF the:enploysesi Those OF the Sc SECOND on 3So
the the s aaHiiia HHa ' made @ e!.sa 'I per- Cent cent. OF Tq the
whole. Al the end of the fifteenth year that
.eckd 5hf aH ssocS .ha as:9 1::oc Il tbs Is. IS ssh ben cent? IT.: ;
sssse es1 1ss e. .sillS ana per .u sinsi DaF ads4s nsI
risen from ss.es to 90. Sc per cent. Of all the
ss@PPleSSes Greater Of the stsb, siGeiet " tb And ao with ~ y s the
ployees had Leen secured. OF the whole num-
Der of men in the forks, only about one-third
many Of these were youths who had but re-
Gently graduated to the workshop. So that
yond the mere financial issue. 81. Godin's
plan had stood the test,
over eH the se entire p oreanIHSe; Il. f Re eid not s .hoS.
ever. give it away; That would at best, probably.
hay . been sen,i = doubtful doubtful b be T'.s II: NJ Go din
only to prove that Industrial cooperation
was both practicable and advantageous to
facturers as well that the transfer OF their es-
Establishments TO the hands Of their employ, es
on their part either Of capital or legitimate
interest. His way of doing this was most in
was made. and its value put at 1900, 900
francs, n very conservative valuation. In re-
s soph yoF ,h hee latter Ht9gef issued iSpS shares RaPase ea GEsf f 20 Ido
er's certificates to tho full amount. These
certihca,es became the provisional capital
I've per cent. ana shared in the profits besides,
The payment or this interest was made n
running expenses had been maid; Thus the
society started with NJ. G9din holding all the
pressly, however. for It's purchase by the So
ciety at its face value, In the following way:
fixed charges had been met. the net profits
remaining, instead Of being divided In cash
among the members Of the society: were APP
AS fast as they were bought In they were can
celled, and In their place wero issued assoc
which latter were distributed among the mem
bers as profits. The total, of certificates. or
same ncnre. namely. 100000 francs. Be.
tween tho two kinds OF shares there was no
cipate In profits or to bear interest. Il took
fifteen years TO complete this process of trans
f M9;t in m either IF w %I sod II t bsssm s!m1 by the ssv farmer S9
their profits. the absolute owners of the prop
erty without his having given them one franc
NJ. Godin foresaw that there would be danger
of the ~societv's shares passing Into the hands
able. The natural processes Of death and re-
tirement from the society would OF themselves
shoufii be n prevented. IN Tas order %G't to realize en 10 the
full his idea OF a self-contained CO community
working dpSv, out T., n1,t own tR, destiny ss.nsiot, To that t.nt,s end It
should be at all times Reasonable, and sec
ondly; that when all the founders certih-
applied 10 the redemption Of the association
eeT,iheates bearing the earliest dato, those
found. SO FAR this plan ha. worked we'll: Tho
old certificates. when brought In, are can
being eiiHs distributed as proats. 70 ' TO members
Of the society. In this way any tendency 70
the scattering OF the shares Is corrected. An
unceasing exchange of shares upon n CEN
~tripetal principle goes on. but tho total amount
outstanding. remains always the same.
The practical wisdom OF the man appears no.
where 70 better advantage tn an In the manner
Of the. distribution of profits. Two errors be-
set the unscloOled meddling with such prob
lens, both crude. both. fatal. One is that OF
confounding profit and interest when capital
claims its reward; the other the ignorant dis
brains their proper proportionate share. This
Is the mistake OF those who never tried to man
age anything, always dearly paid for. In NJ.
Godin's scheme this point Is sQuarely met. IL
accords 10 caPital and lab5i respe ctiyely:
First, their wages. I. C., to capital its interest,
and TO laborers their earnings, these items en-
tering into the cost OF production before any
ton in. the net profits according to tho amount
of work done by each. that 10, In proportion 10
the interest earned by capital nnd the wages
earned bv labor. A clear distinction Is thus
made between what capital earns at interest
and what an protts. In the actual appOrtlOn-
ment, when nll the fixed charges have teen
met. rs per cent OF the net profits are so di-
the highly paid officers who manage tho socie-
tvs affairs. Chief among these is u general
manager. who is elected by the General As
sembly for life at a salary OF Ia. 900 francs. in
addition 10 which he receives four per cent. OF
the net profts, The manager can he re-
moved either II he misbehaves himself or IL the
society should Iail to pay interest on the capt
society, and responsible To the General Assem-
bly, alone, though in practice he cnnsults with
a managing co Incil If the workmen OF the
highest grade. VI. Godin held this office M
TO his DEATH. The sOciety's capital has never
failed to Yield its due interest.