Omaha daily bee., 1899-06-22
NEW TRADES MOVEMENT.
Nearest Approach to American Trust
Among British Manufacturers.

] NehTcNt NnnrUuth tO American
Among British Manufacturers.
Boston Transcript
! Industrial circles in Great Britain are
watching with interest new trades move
ment which promises to be Of great impor-
! tance to all the industries of the United
| Kingdom. A consular report made by the
| United States commercial agent at Limoges,
where steps have been taken to put the sys-
! tenn into operation, gives interesting details
of this scheme, Of which little has yet been
heard on this side OF the water, but which
is fruitful in suggestions to American man
ufacturers. Its originator Mr.. Il. J. Smith,
a successful manufacturer of Birmingham,
does not pose as a theorist, or claim to be a
political economist. Students recognize in
the movement possibilities OF better results s
than any other system so far devised Seven
years ago. according to the report, the first
alliance was formed in the bedstead trade,
which was then in a desperate condition.
No manufacturer was making money, wages
were at the starvation point, several firms
had gone into bankruptcy and others were
tottering. Under this system, every one OF
the bedstead manufacturers has made a
profit on goods manufactured, the condition
of the workmen has improved % per cent,
and today the business Is one of the most
prosperous in Great Britain.
Unquestionably a system which accom-
plishes any such result is worthy of investi
cation. The initial step in any trade Is to
ascertain the cost of manufacture. 1t has
been found that few manufacturers them
selves know exactly what 1t costs to produce
given article of their own manufacture.
In one trade there was a diversity of opinion
among manufacturers as 70 the cost OF max
ing the simplest OF their articles. 1t was
xN1a INA oy TIM 3,,gt hat ,,,tte 1n
taken into account in making up the esti-
mate OF the expenses incident to the fabrica-
tion of this article, and each member wrote
down his idea of the cost. When their notes
were compared it was found that the costs
were GA lis Sd per gross to manufacture,
and these same goods we're selling at G2 los
10d per gross.
To prevent manufacturing at a loss a
minimum ecale is adopted based on the
cost of representative article, like GER
tain pattern of bedstead or a dozen plates.
The manufacturers bind themselves not to
cut prices, and give bonds to that end. A
system of transportation charges places
every member on an equal footing all over
the world, no matter where his works are
located. Any manufacturer who wishes to
come into the combination may do so by
subscribing to the conditions OF membership
and paying fee to be used for defense
against foreign competition, collection of
statistics, etc. The combination is in many
of ito features trust with some of the OBJ
iectionable features OF American trusts
eliminated.
For the workmen, the wages, hours and
conditions of labor existing at the time the
alliance is formed are guaranteed as long as
the combination exists. A wages and con-
ciliation board is formed to deal with all
new conditions which arise, although 1t can
not deal with the old wages and conditions.
The workmen have an equal right in every
way on this board, and if some question
arises which cannot be settled by the board,
an arbitrator may be called in. So far this
never has been necessary. Until the dispute
is settled the workmen accept the employers
terms under protest. When the question is
settled by the board the decision is retroac-
tive, so that delay is not prejudcial to any
cause and strikes and lockouts are elimi-
mated. The first Encouragement of selling
prices carries with it a wage bonus for the
workmen in proportion to the amount of the
average advance. Finally, the employers,
having formed union among themselves,
encourage trade unions in every way. None
but union men are employed, and the work
men refuse to work for any but associated
employers Excessive profits are impossi-
BILE, as the consent of the workman to any
advance in price must be obtained
The proof Of the pudding, in such matters,
is in the eating. The results in the bed
stead trade have been noted. 1t has been
found, also, that under the new system there
has been an increased demand for the goods
manufactured The system has received
the commentator of hard headed business
men and students of political economy.
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which promises such large results. In
country where the trusts and the wage ques-
tion occupy so much attention as in America,
it would seem that an inquiry into this
practical scheme of cooperation might be
conducted with profit.