The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-01-06
PROFIT SHARING.

On the day before Christmas the clerks
of the Carolina Savings Bank, of Charles
ton, S. c., were called into the presidents
room and informed that the directors of
the bank had determined to make a division
of the profits of the institution during the
new year among the clerks in proportion
to their salaries. The effect of this, they
were told. would be that each clerk. in adj
dition to his regular salary, might receive
as a bonus an extra amount in cash of
from 10 to 80 per cent. upon his salary. Thus
every clerk in the bank would be directly
interested in the continued success of the
bank. and while working for the bank he
would be working for himself as well. After
listening 10 the statement the clerks ex-
pressed themselves as highly gratifed and
were unanimous in declaring that i'm the
future they would work together more
earnestly than ever for the continued sue
cess of the bank. This form of cooperation
idea is not new, but. so far as the Journal
knows. this is the first time it has been in
PRODUCED in the management of a bank. 1t
differs from the plan adopted by the Illinois
Central Railroad Company, yet il is based
on the same principle and aimed at the
same result. Under the Illinois Central
plan any employee may purchase stock i'm
the road on installments, paying to the
company s. or multiples of that sum at one
time, and receiving his certificate of stock
when the market price has been paid in.
Until he receives his certificate the COM
pany pays him a fair rate of interest on his
money, and as soon as he has paid for one
certificate he may begin the purchase of
another. Although the plan was first
preached only a little more than three years
ago, nearly 10 per cent. of the employees of
the company are now stockholders in the
road and the managers report "a surprising
increase of efficiency in all departments.
1t is not altogether creditable to a man that
he should be more industrious, economical
and attentive to duty when he is working
for himself than when he is working for an
other on a salary, but human nature seems
to be built that way. The Illinois Central
plan seems to be working equally TO the
satisfaction of the company and its en-
ployes. A recent interview with Mr..
Stuyvesant Fish. president of the road, re-
ports him as saying:
The plan was first preached just before
the panic in 1899. One of the most crafty
ing evidences of returning confidence. and
of the closer relations now subsisting all
over the country between employer and en-
ploye. is the growing interest which our
men have taken in this matter during the
last few months.
The opportunity for buying shares,
which was at first extended to the en-
ployes of the Illinois Central, has since been
given. on the same terms. to those of the
Yazoo * Mississippi Valley Railroad Com
pany. and of the Chesapeake, Ohio & South
western Railroad Company.
There are about 1000 names on the rolls
of the three companies. OF these there are
shares. 211 officers and employees. this. of
course. exclusive of the directors. The
number of those who have made partial
Total interested La, or about 5 per cent.
of those employed.
The company's proposition amounts to an
offer to buy the shares in the market at the
current price. and to give each subscriber
a call at that price upon one share. which
he is at liberty to take or not, as he sees
tit. when his payments, with 4 per cent.
interest added. aggregate the original price
at which his share was purchased:
You will not fail to notice that there is no
element of charity i'm the proposition. but
simply am offer. on the part of the COM
pany. to let the men help themselves i'm the
hope of thereby further cementing the cor
dial relations which exist between them and
the corporation. and p~erpetuating them for
the common good.
The advantages of the plan are obvious.
Besides making the employees more faithful,
Industrious and economical it must intro
duce an element of steadiness and conserva-
tism in the management very advanta-
geous To the road. The moral effect on en-
ployes must be good in promoting economy
and thrift, and when a man finds himself
IL -. -,
soon come To have contempt for dema-
gogues and asitators who d%enounce az. cap
itaiists as robbers and public enemies.