The evening times., 1899-08-30
CURE FOR LABOR TROUBLE.
Plan Proposed by an English Man
ufacturer.

Y
A Plan Proposed by an English MAN.
! nfacturer.
E. j. Smith, Of Birmingham, England.
| who will attend the conference on trusts
in Chicago September 13 to 16, is the orig
inator of new trades movement in Great
Britain which promises to be satisfactory
alike to capital and labor. Seven years ago
the first trade alliance was formed on Mr..
Smiths plan-one of bedstead manufactur-
ers. AT the time that industry was in a
desperate condition. No manufacturer was
making money, wages were at the starva-
tion point, several firms already had gone
into bankruptcy, and many others were
with difficulty kept out of the receiver S
hands.
| Under Mr.. Smiths system every one OF
| the bedstead manufacturers has made
profit on the goods manufactured, the con-
| dition of the workmen has improved at
| least 20 per cent, and the business is as
prosperous as any other in Great Britain.
The initial work to be undertaken when
I a trade desires to form an alliance under
| MIR. Smiths system is to ascertain carefully
| and conclusively the actual costs of pro-
| duction.
To prevent manufacturing being car
ried on at a pecuniary loss a minimum
scale is adopted. A representative artic e.,
/, like a certain pattern of bedstead or one
dozen plates of given size and shape,
] is taken as a basis to ascertain how much
| 1t costs to manufacture. The manufac-
| turers agree on the minimum rate at
which 1t can be made; then a certain, per-
centage is added for profits. and this
! forms the minimum selling price for the
| article. The manufacturers bind them
| selves by the rules OF alliance not to sell
without the consent of the alliance below
| this minimum price. Workmen are also
offered certain interests in the success
| of the business, and both of the two par
ties being mutually dependent, there is
+, no occasion for strikes, .lockouts or trade
disputes.
The rules of the alliance are in sub
stance as follows.
First-A thorough examination into the costs Of
production Is made in every trade. Mr. Smith
I does not take the opinion of any person, firm,
| or company, but insists upon having the Joint
experiences and opinions of large committee
placed before him, from which estimate OF
cost much more reliable than that which any
| one manufacturer could supply is obtained.
Second-Cost taking includes the fixing OF uni
form rates for working expenses, carriage, cash
discounts, selling commissions, merchants allow
ances, rebates to large buyers and all the incl
dental costs of trading. Large buyers are given
rebate according TO the amount OF their pur-
chases from the combination every six months.
This Is obtained from the secretary OF the alliance
only, and is granted all purchase, thus en-
abling the buyer to distribute his orders through
| out the whole alliance if il suits his purpose 10
do So A system Of fixing transportation charges
places every member Of the combination on an
| equal footing all over the world matter where
| his works may be situated To all these ex-
penses is added the proportion of profit, which is
| accepted as the minimum
Rule
/ lance and arrange fsri an investigation of com
plants of underselling a departure from the
regulations. Any charge. properly proved is
punished by fine imposed by general commit
tee. but appeal to the whole alliance is open
| to all persons fined
Fourth--In many combinations compensation
against loss is guaranteed to all members. IL is
very significant however, that not a single ap-
plieation has been made Various grades of sell
ing prices also adopted whenever trade de-
pends upon the quality Of the goods and the rep
utation OF the makers. so that the unknown and
less skilltul maker may have fair chance.
Fifth-Eyery combination has large fund for
fighting and other purposes This fund is Sc
cured by means of guarantee at the bank,
so that the money docs not have to be drawn from
the business. Each member guarantees in pro-
portion to his standing in the trade, and he is
responsible only for the amount against his
name
Sixrh-ordinary expenses of management are
met by quarterly levies made in the same way.
Seventh-A foreign, committee is appointed for
the collection of statistics and examination into
competition. II also makes recommendation as
10 how TO meet this competition. This is some
times done by underselling in particular
article. until the foreign competitor either re-
tires or is willing TO come to agreement
| Eighth-There is attempt at monopoly or
making close trade in any combinations Due re-
gard is paid TO the claims of an applicant FOR
admission 10 the combination.
Embellishments are offered to workingmen
| as follows:
(a) Wages, hours, and conditions of labor ex
isting at the time the employers alliance is com
pleted are guaranteed long the alliance lasts
| tb) wages and conciiation board is formed
in which workmen have equal right in ever,
way This board has absolute power 10 settle all
disputes which cannot be arranged in the respect
i've works on terms in keeping with the Eulcs o.
each alliance. When question is settled by tn,
board the decision is relative. that the delay
necessary to adjust the matter may not prov,
prejudicial 10 either party. Strikes and lockout.
are thus made impossible.
| (c) The first arrangement OF selling prices ear
rles with II wage bonus for the workmen. il
proportion TO the amount OF the average adj
vance Whatever it may be, the first bonus l.
fixture as long as the alliance exists. Any addi
| tional advance in selling prices must be made b,
the consent of the whole board, and carries Will
1t bonus wages.
I'D The employers having formed a unioI
among themselves. give their support TO trade
unionists, that the workmen must form ,
union if none exists. On the other hand. tn,
workmen refuse to work for any but associated
employers.
Mr.. Smith, the originator of this COM
bination movement has been a successful
manufacturer for several years in Birming.
ham; has held the different positions OF
employe, traveller, salesman and manu-
facturer in his trade. and gained his