Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-06-07
Effort to Identify Interests of En-
ployer and Employe.
EXPERIENCE OF SEVEN YEARS
Students Of Political Economy
Praise the System.
PRACTICAL MANS IDEA

THE Industrial circles of Great Britain
are discussing with great interest new
trades movement which has arisen, and
which promises to be Of great Importance
! to all industries OF this kingdom" writes
Walter ]. Griffin. commercial agent at
Limoges. In an interesting report just given
out by the War Department.
The movement is an answer to the tIite
question: is there not some means of
cooperation by which the interests of the
Femployer and the employees may be united,
by which these disastrous strikes-so fatal
not only to individual comfort, interests
! and happiness. but to industry and COM
mercial slccess-may be prevented?"
Mr. E. J. Smith. the originator of this
combination movement, has been a success
full manufacturer for several years in
Birmingham; ne has held the different po-
I sitions of empIoye. traveller, salesman and
manufacturer in his trade, and has gained
knowledge from experience. While far
from posing as a theorist or laying claim
: to be called a political economist. he has
: brought to the front system which is
recognized by students in Great Britain,
! Germany. Norway and Sweden contain
( ing possibilities of better results than any
other scheme so far devised.
Dir. ChamberIain's Tribute
Joseph Chamberlain in moving vote of
Birmingham. used the following language:
L do not know whether you are aware
that within the last year or two he has car
ried out. in connection with the trade with
which he is interested. a great social expert
meEt. the results Of which have been truly
marvellous Into trade in which formerly
every one, " neither workman or employer,
dissatisfied. he has brought content
ment. Wages. l believe. have been in
creased. profits have become larger. and,
curious 10 relate. the demand and the pro-
ductiDn have increased at the same time.
This experiment., | believe. is capable of
great development. I understood when 1
Was last in b afford that great trade in
that city. acting on Mr.. Smiths suggestions,
had. agreed to adopt the principles upon
which he has secured success. Those prin-
Cipts involve a hearty union between en-
plpyers and employed. and | trhst that all
who ind themselves in a difficulty will, at
ali events give some consideration to the
Solution which MIR. Smith believes he has
found"
Mr. William Woodall, member Of parlia-
ment. speaks thus of the movement:
Il am not qCits sure as TO how much Of
real originality there may be in Mr.. E. ].
Smiths scheme suppose most of us have
had Our theories to the way in which
what he is bringing about should be &C
C"mplished- Speaking for myself. L may
say that ! have thought about it for many
years. and l have conceived many plans
whereby | could properly divide the profits
OF my business between my workmen and
L
any Of them out. for the simple reason
that could not make any profits 10 divide.
The difference between Mr.. Smiths plan
and any other seems to be that he first
makes the profit for use. and then shows
US what We ought TO do with it
Profit of Employer and Employe.
In a speech delivered before the Bed
stead Manufacturers Association Ghe first
alliance was formed In this trade) Sir
James Smith. sx-lOrd mayor of Birmng-
ham. used this emphatic language:
u think that not only the manufacturers
but the public and working people have
pronted by the work of our association
Since the association was formed the work
men have had their wages increased to the
extent of - per cent. which is equal to the
addition Of IL .oc q week to the wages paid
in birmingham; and / have reason to be-
lieva that the wages have been well spent
while the workmen have improved in char
acter and self-respect."
These representative men spoke of the
system in glowing terms three years ago.
when the Combination movement was in it's
infancy. Since then such writer's as Sidney
Webb professors Of oxford and Cambridge
universities. and several political econom-
lists of continental Europe have interested
them selves in this movement; they are
studying the question, and have written ap-
Pr0vingly on the subject 10 its originator
work of Seven Years.
Seven years have elapsed since the first
At the time Of its formation the condition
OF the industry was most desperate. No
manufacturer was making any money,
wages were at the starvation point. several
firms had already gone into bankruptcy
and a number Of others were with grea
difficulty kept out of the general receiver
hands Under this system every one of
the bedstcad manufacturers has made a
profit on goods manufactured the condi-
ZION OF the Workingmen has improved at
least - per cent. and the business is in as
prosperous a condition as any other in
Great Britain.
Methods of the Alliance
The method Of starting an alliance Is de-
scribei as follows:
To prevent manufacturing being carried
on a. a pecuniary loss. minimum scale Is
adopted representative article like a
certain pattern Of bedstead or one dozen
plates Of a given size and shape is taken
a. a basis to ascertain how much it costs
10 manufacture; the manufacturers agree
on the minimum rate which it can be
made, then certain percentage is added
for profits. and this forms the mini r,5,,n
selling price FOR that article. The manu-
facfurers bind themselves by the rules of
N" dlhance. not to sell. without the con-
sem 81 the alliance below this minimum
price The w0rkmen are also offered GER
tIiu interests in the success of the bus
mess. and. both parties being mutually de-
f''iheift. There Is no occasion for strikes.
lr-kouts OF trade disputes.
After giving in detail the many rules
governing the operations OF the alliance the
report concludes as follows:
1t will therefore be seen that workmen
secure Is their share of the bargain a good
union q minimum wage. d bonus or bo-
muses. according 10 the extra profits OBJ
la-n-i tthe first is a fiXJure). and a wage
board on which they have equal represen-
"a ION
40 excessive profits. which would him
he- trade, are possible. the consent of
In, any stgrr.,r
"a ned.
Experience has shown that the work
men are careful not to demand bonuses
For example. in the bedstead trade the
men have refused to receive any further
bonus whatever. because they believe that
thcy are now being paid all that they can
safely claim Another safeguard against
undue profits is that the trades are left
open To every one. There are no restric-
Tons upon any person entering beyond a
reasonable and proportionate entrance fee
To The alliance
Her InIerprrtatIOn of