Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-04-29
LABOR LEADERS NOT
s{ IN FAVOR OF PROFIT
SHARING SYSTEMS

New York. April 2s.--One Of the most
exhaustive reports that has ever been
made on the various profit-sharing
plans that are in force or have been
tried in the United States was made
yesterday by the welfare department of
the National Civic Federation. Civic
workers have been engaged for twelve
months past in Investigating more than
900 So called profit-sharing schemes.
and their report covers the analysis OF
some 200 plans. ri
The report itself comes to no set con-
clusions, for or against the profit-shar-
ing idea, but it devotes more than $50
pages to an exposition Of the many
plans in force today or tried and aban-
doned, and sets forth group Of inter-
esting opinions and discussions both
from prominent employers. representa-
tives Of organized labor, and special
students of the subject.
George w. Perkins, Charles M.
Schwab. Samuel Gompers, president of
the American Federation of Labor,
Warren s. Stone, grand chief Of the
International Brotherhood OF Locomo-
tive Engineers, w. D. Mahon, presi-
dent of the Amalgamated Association
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others are quoted at length.
The views Of the leaders Of organized
labor appear unanimous in opposition
to the general theory and practice of
profit sharing, while large number of
the employers whose plans are ana
lyzed in the report, consider profit
sharing success.
"Many reasons" says the report, ARE
nr;1y ~ 70 hair 70 =
in the idea. Among these are that it
promotes more continuous service re-
duces cost Of PREDICTION, secures more
regular attendance at work, builds up
confidence and creates a spirit Of CO.
operation, gets rid of rolling stones,
and encourages home building, enables
the company to keep its employees dur
ing rush seasons, induces statesmen and
others to work harder, promotes eff
ficiency, interest and loyalty; and in
creases the profits Of the business"
Yet, the, report continues, employ
ers who have had experience on the
subject are by no means a unit as to
express disappointment that the efforts
of their companies were not appreci-
ated by the men, that they seemed to
PISlcE lASlE lOIdl III AACu
wages, with no variable element, that
they were suspicious of the employers
motives, that they insisted upon join
ing unions and presenting demands in
spite Of the companies efforts to give
them an extra share Of the business,
that when stock was sold to employees
upon favorable terms they would dis
pose OF it at pfoft, when. its value
rose, and SO get the habit Of watching
the stock market, that when the profit
distribution was large the employees
learned to expect q similar bonanza
every year and were disgruntled If they
did not get it. to say nothing of their
discomfort If conditions forbade any
extra payment at all; and that all
schemes Of this sort are necessarily
complicated and hard to understand, so
that the workers, especially of the less
intelligent grades, are not easily con-
WINGED that the system really benefits
them and is not merely a device to
withhold a part Of what they might
otherwise demand and get.
| THAT difficulty of comprehension is
real and not imaginary must be ac-
knowledged by investigators Of the
great number Of schemes attempted