Waterbury evening Democrat., 1903-09-17
CAPITALIZED LABOR.

1 As an example of an organization which is not the easiest nor the most 1 difficult to form, let us assume Ma chinists' corporation with capital stock of $10O,OOO, GOO divided into shares of $10 each. For the purpose of keep | ing the stock widely distributed and the number of stockholders large we 1 will assume the limit of holdings of and one person to be $1, GOO. Besides l owning stock in manufactures em- I ploying machinists, the objects of the corporation are to be securing employ ment for it's members on the best
 terms obtainable, and the promotion of
 the general welfare of machinists. For the purpose of keeping such an or ganization in line in which it will be of value to both capital and labor cer- tain rules or bylaws will be required,
 of which the following are examples: 1-The corporation will take no part in any labor dispute.
 2-Membership in any labor organi- zadon shall in no way affect any ones rights to become a stockholder in this corporation.
 3-No stock shall be sold to any
 
 making, using or selling machine tools. 4-No transfer of stock from one person to another shall be recognized. t5-The corporation will at all times and on demand, redeem stock at par! 6-AII stockholders are guaranteed
 annual dividends of not less than 6 per cent.
 "A bureau of employment will be fnruod and nff1ooS Ypaipta inod af S1Jif-
 able places.
 9Stockholders will be charged a 1 nominal fee for each situation secured for them, and other machinists' will be
 charged a slightly higher fee for the same service. I 9-The officers of the corporation shall, from time to time and by in-. structions of the board of directors,
 use the money accommodating in the treasury from the sale of the corpora tion's stock in manufac ctories using
 machine tools
 10-The secretary shall promptly
 notify all stockholders of each pur- chase made.
 It will be observed that there is not only a guarantee of a. 6 per cent divi-. dend, but the corporation also agrees to redeem it's own stock on demand. As there are also certain expenses to be met, it will be evident that before such corporation can be formed there must be supply of money on hand. We will assume for the present that some genie. has furnished it and that there is fund which may be drawn upon for all legitimate expenses until the corporation has an income of its own sufficient for the purpose.
 With the corporation formed and a guarantee fund on hand, machinists
 are invited to purchase stock When the prospective stockholder learns that he has something to gain and nothing to lose, that his liberty is not curtailed in any way and that Be can back out at any time without loss, he will not be slow to enter into such an arrange
 ment to the limit of his financial
 ability.
 Tn due course of time our prospective corporation has 10000 stockholders, has purchased $2O0,O0O of the capital stock of dividend-paying manufactur- ing companies, and has notified all of it's stockholders of the extent and kind of these purchases Among the pur- chases made would be an interest in the Smith Go, manufacturers of lathes and planers, an interest in Jones & Go, l manufacturers of milling machines and drill presses; and an interest in the Brown Go, manufacturers of ma chinists' small tools. AS these 10,CSO
 machinists buy good many small | tools for their own use and as they have a financial interest in the divi- dends of the Brown Go, they will buy the Brown tools in preference to other tools. While the influence of one ma- chinist is small the influence of 10,-' 900 machinists is great, and all of | these 10000 machinists favor the Smith machines and the Jones ma chimes As a consequence of this the sales of these machines increase at the expense of the sales of the machines
 of their competitors. The Smith Go
 the Jones Go, and the Brown Go not
 only reap all the advantages that they
 would have by getting their own em-
 ployes to own part of their stock, but
 they reap the additional advantages of
 widespread influence.
 l Under these conditions it will not be l long before the Johnson Go and the
 Jackson Go realize the importance of own part of their stock, and they will
 offer it at discount from market val uG. In facL7 aS DuSlueSS proposition
 it will pay the Johnson Go and the
 Jackson Go to donate large blocks of
 stock and charge the expense to ad-
 vertising and to improvements. The value received from this form of in-
 vestment would be greater than from 1 a similar sum of money invested in al-
 most any other way.-C. L. Redfeld in
 The Engineering Magazine for Septem-
 Der.
 For a bilious attack take Champer-
 dain's Stomach and Liver Tablets and