The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1919-10-18


are no longes strshine fot definite m.
crease IN wages bat fog what they re-
gard M fairer proportion of The
preliss cf tie business Ia which they
arr cngArvd
NJ am right about this. then we ara
rapidly leaving behind the period when
labor disputes could be- settled ~ a
mere Increase In wages and are enter
Ing the period when profit sharing IN
some form must he pFaeiiced
Outline ss Correct prsNt. sharing
Plan.
A gand many ycnrx az actual expert.
eRcr have made me sers optlmiasle ~.
garling rrosit.sharng rlans worked
out along the fcllnNlne llnes:
First Eyery business has. nrat NJ
Ali 10 earn operating expenses. de-
pr.ciaticn and fair returns on honest
capitalization.
Seconh i believe that every hus'.
ness should consisicr That tho camr4n
.slon paid employees Il for the pmr.
posse nf earning sum af momey sun.
eicnt 10 pay the aforementioned
Items
Thlra--i believe thar nny pronts
over and above such sum shoald, on
some percvnsaae basis be divided be.
tween the capital usc,i n the business
and the employees engaged Ia the Lssi.
HESS
fonrth~~f beiicye that In neither
case should these profits be lmmeai.
ately Withdrawal flNm the business !.
that they should he lrss ID the business
for reasonable length ~ tlma ia pto.
feet and Inerease rs unanelal strength
aud SAFETY that IN the case ~ capital
It's share of these profits should he
carried 20 surplus. that IN the case
of employees sheir share of these prof.
It's should De distributed 10 them 10
some form Of security representing on
interest Ia the business. and that each
employee should bc required 90 hold
such security FOR reasonable length
OF Time, Say tlsee ta sise years.
Fifth believe that the e1lployecs
share ~ these profits should he allotted
70 them nearly as possible on the
basis of All. compensation they ~.
ceive, w ia date This has proved 10
be the best method
Results Attained by a Proper Plan.
New, let us see what such a plan
mcans In the Erst place. II means
that under such an arrangement caeh
employee becomes n working partner
In lao business lie 10 on the same
fooliug as tho ilnunclai partners, fns
II the concern ~ q premiership with.
say, four or tive members, tho partners
themselves are drawing out each year
what, IN a way. might be called ealn.
rieS. via, approximately the amount
~ sloney necessary % meet tlrlr pan.
erul living expenses. leaving thrlr sur.
Plus profits IN the business. Any purf.
ncrship or any prod sharing plan that
divided up th. profits and withdrew
them In cash IA The end of every year
could not last very onE
Why Some Profit Sharing Plans Fall
Many prohl-sharing pluns have divlj
"a profits with employees on a cash
basis and turned lhs money over 10 lhe
employees every 10 often, usually encr
year The result has been that II a
man earning $1,000 a year received
500 AZ the end OF The year from u
proiit-Sharing plan, he promptly lifted
his living expenses from $1,000 basis
to $1,000 basis. and hegan 10 look
apon his Income as 81 300 rather than
sluDo, aud the extra $500 did little to
Increase his activity and efficiency, or
10 promotc his intellectual efforts in
the business concerned.
Then If period came when busi.
ness was dull or poor aud hc dld not
ges the extra sanN. No found fault win
tbe owners of The business md became
gronehy and inclined 60 lose interest
IN hiS work
Little real substantial benefit comes
ffon profit sharing plan whore the
profits are pald out IN cash, except
perhaps where man uses the money
toward buying home.
Full Publicity Needed About tho BusI.
mesa.
In establishing profit.shariRg II IL
of the utmost Importance that the
entire organization, the wage and sal
ary eafners. know IN advance exactly
what they are expected to accomplish.
! mean by this that, on entering new
year. they should know exactly whnt
the preceding years accomplishments
have been. The annual Statement of
the concern sliould he full and explicit.
so that every inan engaged in the enter.
prise WIN know what business was
done In the preceding year and on what
basis profits were nnd are 10 be dis.
fributed.
soms Objections TO the Plan Answered
Msty people have said to me: "0h.
but II takes a long while for man
who II only saving small sum each
war TO acquire much of a financial In
teiest In the concern by which he Is
have always found that
such criticism comes from someone
who hSs not given sufficient thought 10 |
the stisject, for small interest means |
as Hucb TO the man having COM
parafIyriy small snary as a large In
Ierest does 10 the man Of large affairs.
Let me summarize some OF the adj |