The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-12
PERKINS SEES CURE
IN PROFIT SHARING
Financier Gives Views at Con-
ference Of National Civic
Federation.
LABOR LEADER OPPOSED
Matthew Vol, Vicc-President
of A. +. Of L., Sees Effort
to Shift Losses.

Most of the Kaleidoscope angles OF
the Industrial complex were dealt with
and sundry sedative suggestions put
forth at the all day conference yesterday
OF the National Civic Federation in the
woolworth Building.
Next to the declaration by Matthew
Vol, yce-president Of the American
firmly opposes a strike such as that Of
the Boston policemen. the development
that commanded the most attention was
George w. Perxins's partnership in an
dustry plan whereby those who toll
would have fair and equitable share,
untinged by patronizing philanthropy,
In the values which their labor pro-
duces. Outlining a practical workable
profit sharing system he said:
"A good many years of actual expert
ence have made me optimistic regarding
profit sharing plans worked out along
the following lines:
"First-Every business has first OF
all to earn operating expenses, deprecia-
ton and fair returns on honest capt.
talization.
Second believe that every business
should consider that the compensation
paid employees is for the purpose OF
earning a sum of money sufficient to pay
the above mentioned items.
Third. that any profits over and
above such sum should, on some per-
centage basis, be divided between the
capital used in the business and the
employees engaged in the business.
Fourth. that in neither case should
these profits be Immediately withdrawn
from the business; that they should
be left in the business for reasonable
length of time, to protect and increase
its financial strength and safety; that.
in the case of capital, its share of
these profits should be carried to sur
plus that, in the case of employees,
their share should be distributed to them
in some form of security representing
an interest in the business. and that
hold such security for a reasonable
length of time, say, three TO five years.
Fifth, that the employees share
should be allotted to them as nearly
| as possible on the basis of the compen-
! sation they receive. Up to date this
has proved to be the best method"
Cash Division Failure.
Where profit sharing plans have d.
i vided profits on a cash basis. failure
toften has been the result, Mr. Perkins
pointed out because the objective of
the scheme, to get workmen interested
not only in their own rewards but In
business efficiency, had been ignored.
Accordingly he advocated publicity with
regard to the deteils of the business or
industry which would acquaint the en-
ployee with the exact financial situation
and show him the way to aid In i'm
proving II by his personal efforts. with
the resultant reward as his incentive.
To cement this interest he urged that
employees become security holders, hnan-
ciaiiy interested In their concerns.
To the objection that owners would
hesitate to let 1t be known publicly how
little or how much they earned Mr.
Perkins offered the answer that busi-
ness mercy getting by" would be Inn
proved were its true condition known so
that its working organization might bet
ter 1t, whereas a business reaping huge
profits could not expect to enjoy that
privilege secretly for long.
The day of secretive methods Is
passing rapidly" said Mr.. Perkins. 1.-The
day of publicity is at hand. Any profit
sharing plan without an open, honest
balance sheet and detailed annual report
will never succeed. am convinced that
labor is entirely willing that capital
| should have it's fair reward and proper
| protection, but in this country We have
too many instances where capital has
| demanded improper protection and taken
exorbitant reward: and one of the main
reasons why the serious problems con-
| fronting us to-day are so difficult of
solution lies in the fact that too many
men of capital are still arrogant and
unreasonable.
"On the other hand, one of the most
| serious drawbacks to Increased output
and economical production is the listless,
| Indifferent service rendered by a large
percentage of employees, Making part
ners OF employees through profit sharing
would correct this as nothing else could