The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-06-26
INDUSTRIAL ALLIANCES.

Several days ago The Herald called
| attention TO a system of labor arbitra-
ton lately tested in the manufacturing
districts of England with excellent re-
suits. that leading statesmen of Great
Britain have given it their unqualified
Endorsement and unstinted praise.
A correspondent inquiries for details
of the plan, and adds that "a newspa-
per cannot discharge higher duty to
the public than by placing before it
practical lessons for home study that
will help to improve industrial condi-
tions and relieve the tension that seems
! to exist almost everywhere between the
| employer and the employee"
The Herald has already outlined the
general purpose of the system. The
method of its application is somewhat
| difficult TO explain in a short article,
I but a synopsis is given:
! F'irst-A thorough examination into
! the cost of production is made in every
/ trade entering the alliance. The orig
/ inator of the system does not take the
] opinion of any one person, firm or COM
pany, but insists upon having the joint
experiences and opinions of a large
committee placed before him, from
which an estimate of cost much more
reliable than that which any one man
ufacturer could supply is obtained. He
says that few manufacturers know the
actual cost of articles in which they
deal, but contends that when they be-
come accurate in cost taking there will
be no excuse for selling without a
profit which leads to wage cutting,
strikes and often ruin.
Second-The cost taking includes the
fixing of uniform rates for working ex-
penses, carriage, cash discounts, selling
commissions, merchants allowances,
rebates 20 large buyers and all the in
cidental costs of trading. Large buy
ers are given a rebate according to the
amount of their purchases from the
combination every six months This is
obtained from the secretary of the al
lance only, and is granted on all pur-
chases, thus enabling the buyer to dis
tribute his orders throughout the whole
alliance, if it suits his purpose to do
so. The system of fixing transporta-
ton charges places every member of
II
over the world, no matter where his
works may be situated. To all these
expenses is added a proportion of
profit which is accepted as the mini
mum.
Third-Rules are drawn up which
govern the alliance and arrange for the
investigation of complaints OF under
selling or any other departure from the
regulations.
Fourth-In many of the combinations
compensation against loss is guaran-
teed to all members. But in all the ex-
periments made, and although some of
them have been in operation for seven
years, not one application has been
made.
Fifth-Various grades of selling prices
are adopted, wherever a trade depends
upon the quality of the goods and the
reputation of makers, so that the I'M
known and less skilful maker may have
a fair chance, and that no one can
abuse privilege by selling in a lower
grade and taking away the trade of a |
competitor.
Sixth-Every combination has a large |
fund for fighting and other purposes. |
Thus fund is secured by means of a |
guaranty at bank. so that the money |
does not have to be drawn from the |
business. Each member guarantees in |
proportion to his standing in the trade |
and he is responsible only for the |
amount against his name. As the guar
anty is not joint document, there is
some risk to the banker who advances
the money, which is covered by paw
ment in cash of 10 per cent of the
amount guaranteed. The fund is in
vested in the names of two trustees
who have from every member of the
combination a complete indemnity for
its use.
Seventh-A foreign committee is an
pointed for the collection of statistics
and examination into competition. 1t
also makes recommendations from time
to time, as to how TO meet this competi-