The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-18
THE PROFIT SHARING PLAN
Certain Criticisms Of IL and Visions OF
Disaster Answc cred.

To THE EplroR OF TIE SUN-Sir: Mr..
Lloyd NJ. Howell states in a letter pub
lished I'm THE SUN of January IA that
the result of Mr.. Henry Ford's profit
sharing plan will be either widespread
labor troubles not only in the automobile
industry but in all other Industries II
other manufacturers do not adopt Ford's
plan, or ruin, mathematically demonstra-
BILE. II they do.
This is very cheerful prospect for all
manufacturers, employees and those de-
pendent upon these two classes II your
correspondent propheses truly, and we
are all very much obliged to the gentle-
man for warning US Of the impending
doom of all industrial enterprises. But
hope sprlnga eternal. Are all persons
employed in the same industry ut the
present time paid alike? Theoretically.
yes Practically. no. In this country.
state or city men are doing the same
work at widely variant wages. Labor Is
perishable commodity, and the laborer
must make a forced sale at the best price
he can get at that very time and place.
for " he delays a week or a month he
has lost just SO much OF his commodity
and can never regain 1t. II n laboring
man has an opportunity to earn a higher
wage he takes II. but he usually fears to
jeopardize the actual livelihood OF his
wife and children by striking unless they
are already starving. even IL he knows
that some one else mile or a thousand
miles away is getting little more money
than he.
The 10000 men who storined the Ford
factory in Detroit in their cagerness for
employment did so because they knew
that the standard of wages there could
not possibly be duplicated in other fac
tories throughout the country.
Undoubtedly some demands will be
made by the employees of the manufac-
turers paying very low wages, but 1t is
question whether a company such as
your correspondent mentions. earning 20
per cent net profits on its capitalization,
could not afford. at least partly, to satisfy
the demands of its employees and still not
lower the dividend apprccably. owing TO
the increased willingness, loyalty and
efficiency of its employees Mr. Ford be-
lieves there will be a great increase in
efficiency. both individual and collective
in all his factories. Mr.. Ford should be
a recognized authority OF efficiency. But
the assertion that serious labor troubles
will result from the progressive policy of
one company is untenable.
a." In attacking Mr.. Ford's plan In a
letter published In the same issue, says
that the wages Of the employees of the
Ford company were increased because the
money was lying around loose and they
did not know what else to do with IL.
What an unimaginative yet trusting set
of people the directors of the Ford com
pany must be . He also deplores the
damage that will be done to the employees
of other companies owing to this increase
He then declares that the Ford company
is charging the public an exorbitant profit
on its output and ends with this
OF course the idea of reducing the charge
20 the public has never entered the wis.
minds OF the political economists who man
age the corporation.
A. I'm surprised al you. Here you
tenderly inquire what is going to happen
TO the employees Of other auto compa-
MES who are not paid so highly and In the
next breath YOU want to know why the
Ford company does not further reduce
the cost to the public. If the Ford com
pany should lower the cost OF its cars
very much more 1t would mean absolute
ruin to scores OF competitors here and in
Europe whose cars sell from 81 600 down
10 the lowest price. and thousands OF
those for whose welfare "a" is so solicit
tous would be thrown out of work. for
only small percentage could he en-
ployed at the Ford factories TO increase
their output to meet the subsequent de-
mand. RICHARD HowEILs
NEW YORK January 10