The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1919-10-03
Sharing of Profit
Will End Unrest

Proft-sharing on frank and fair
basis was declared to be the only So
luton Of the present industrial unrest,
in speech delivered at the annual
meeting of the National Civic FEEDER
alton here today by George W. Per-
kins.
Perkins said he was convinced that
labor was entirely willing that capital
should have it's "fair reward and prop
or protection" but that there were too
many instances in which capital had
demanded improper protection and
had taken exorbitant reward"
At the same time Perkins denounc-
ed bonus systems as doing more harm
than good, and as stirring up trouble
rather than alleviating it. The giving
of bonuses, he claimed, caused en-
ployes TO feel that the employers were
making vast sums of money out of
which a sop was thrown to them to
bride them into feeling kindly disposed
or to ward off demand for a general
increase in wages.
Describes His Plan.
As an alternative Perkins proposed
a definite detailed scheme of profit
sharing which, he said, had been adopt
ed by some companies with which he
was connected and had proved most
successful. He described this plan as
follows:
81. Every business has, first Of all,
to earn operating expenses, deprecia-
ton and fair returns on honest CAPT.
talization.
SO. | 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.
"3, | believe that any profits over
and above such sum should, on some
percentage basis, be divided between
capital used in the business and the
employees engaged in the business.
a. believe that in neither case
should these profits be Immediately
withdrawn from the business; that
they should be left in the business for
a reasonable length of time, to pro-
tect AMI increase its financial strength
and safety; that, in the case of capt.
tai, its share of these profits should
be carried to surplus; that, in the case
of employees, their share Of thefe pro-
fits should be distributed to them in
some form of security representing an
interest in the business, and that each
employe should be required to hold
such security for a reasonable length
Of time, say three to five years.
Base Shares on Wages.
as. | believe that the employees
share of these profits should be allot-
ted to them as nearly as possible on
the basis of the compensation they re-
ceive Up to date, this has proved TO
be the best method"
The employer who objects to profit
sharing because he is making so much
money that he is afraid to let even
his own employees know hVw much
money he is making" was declared by
the speaker to be "more than any
other, responsible for the serious diff
ferences today existing between cap
ital and labor, for, with the growing |
intelligence of the masses, how can he
expect such a situation to continue?
Every year, yes, every day, it becomes
clearer and clearer that such a condi-
ton will no longer be tolerated and
must speedily pass away. Would it
not be better for him to use some in
telligent foresight and meet what
clearly are to be the immediate fu-
ture demands of public opinion?"
Must Have Cooperation
Perkins said that the history of
the relations between labor and CAPT
tai could be traced through the terms
successfully used to denote the man
who worked for a wage and the man
who paid the wage. First it was own
er and slave" then it became master
and man." today it is employer and
employee" and tomorrow Perkins de-
clared he believed at must be part
ners." In conclusion he said:
Since the beginning of time no coun-
try has ever had such an opportunity
to extend it's trade, increase its pros
perity and better the material condi-
ton of every one of its people as has
the United States of America at this
hour. The only factor missing is that
of close cooperation here at home
among ourselves. 1t seems incon-
ceiVable that we fail to realize where
our weakness lies and fail to adopt the
one and only remedy for it. In the
strenuous competition with the rest
Of the world that this country is on
the eve Of facing could we have a