The labor standard., 1919-10-01

trouble rather than alleviates it.
 Profit sharing on the basis l favo
 is sometimes objected to by men O
 concerns who do not wish to let ever
 their own employees know how little O.
 how much money they are making
 each year. To such men I always sa!
 (and each year I am more and more
 that they are very short-sighted Ii
 they do not hasten to change thei1
 policy. If they are not making
 enough money and the business is run
 ming on close margin each year, ther by all means they should set thei1
 situation before their men, adopt sucl
 profit-sharing plan as 1 have out
 lined, and get the genuine .co-opera.
 tion of every man towards increasing
 the profits and putting the business
 in prosperous condition. They are
 now paying wages and salaries, and
 many a night go home wondering whether the employees are really earn ing their salaries. Under such a they have a substantial guarantee that the salaries will be earned, be- cause in aiming to share in profits over and above fixed charges the men are all the more certain to earn at least the fixed charges. And would any proprietor or manager hesitate to pay a handsome premium each year for an insurance policy guaranteeing that every employe in the business would have the business on his mind and work as hard for it's success as the proprietor or manager does?
 One more thought in this connec- tion:. The man who is running on a small margin and making little profit may object to making his business affairs public property, on the ground that he would be putting a weapon into the hands of his competitors. Such a mans best protection against his competitors is loyal, closely knit organization of the highest efficiency, and this important advantage he can only secure through bona fide profit sharing plan.
 As for the man who is making so much money that he is afraid to let even his own employees know how much he is making, to that man 1 say that he is the man who, more than any other, is responsible for the seri- ous differences to-day existing be- growing intelligence of the masses, how can he expect such situation to continue? Every year, yes, every day, it becomes clearer and clearer that such a condition will no longer be tol- erated and must speedily pass away. Would it not be better for him to use some intelligent forsight and meet what clearly Ire to be the immediate future demands of public opinion?
 As for the man who is making large profits but who objects to profit shar- ing on the ground that he wants to put those profits away against the day when business may be poor, to such a man, I say that he had better use some of those profits to more deeply inter est his men in his business, and do this to such an extent that if the dark days come he can be pretty certain that his men will stand by the busi- ness in way that capital alone never can.
 Profit sharing on the basis I favor is also sometimes objected to by con- ,erns whose securities are closely 1eld. There are many ways to obviate his difficulty. Some concerns can in- crease their capital. Others that can- lot, or that cannot ao so for a time, ,an obviate the difficulty by issuing certificates of participation that will lraw the same percentage of profit as he regular securities of the business. Tn other words, where there is a genu- ne desire to share profits way can always be found.
 The day of secretive methods is passing rapidly. The day of publicity s at hand. The change is a perfectly natural evolution due to broader edu- ,ation and improved intercomn1unica- ion and has also come about because t is second nature to be less suspici- JUS and afraid of. that which is known han of that which is unknown. Any plan without an open, honest balance sheet and detailed an- lual report will never succeed.
 I am convinced that labor is entirely | wiling that capital should have it's air reward and proper protection, but 1 II this country we have had too many ] instances where capital has demanded | improper protection and taken exorbi- l ant reward; and one of the main req ons why the serious problems con- ronting us to-day are so difficult of | olution lies in the fact that too many | nen of capital are still arrogant and | and absolutely unwilling | o look with sufficient care and fair less into the causes that are pro- Iucing the views and opinions so | argely held by our people this time. )n the other hand, one of the most 1 erious drawbacks to increased output nd economical production is the list ess, indifferent service rendered by a arge percentage of employees, through | 'roft sharing, would correct this as lothing else could.
 Profit Sharing that Has Been
 Success
 Some companies with which I am onnected have realized the trend of he times and have for some time been racticing profit sharing along the ines have indicated. They believed hat proft-sharing plans based on uch principles, would so knit their ast organizations together, and would so strengthen and develop the spirit de corps, as to make it pos ible for the companies to increase heir business and their earnings; and hey were willing to share this in reased success with their employees. 'o far they have every reason to con ratulate themselves on the results. n all parts of their business, at home nd abroad, in the office force, in the