Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-09-11
PERKINS FAVORS
PROFIT SHARING
ON FAIR BASIS
Only Solution to Industrial
Unrest, He Tells Civic
Federation

New York, Sept. 11.-Profit-shar
on frank and fai> basis was de-
clared to be the only solution of the
present industrial unrest in a speech
delivered at the annual meeting of
the National Civic Federation here
to-day by George w. Perkins.
Mr.. Perkins said he was convinced
that labor was entirely willing that
capital should have its "fair reward
and proper protection" but that there
were too many instances in which
capital mad demanded Improper pro-
lection and had taken exorbitant re-
ward"
At the same time Mr.. Perkins de-
nounced bonus systems as doing more
harm than good and as stirring up
trouble lather than allcviating 1t. The
giving of bonuses, he claimed, caused
employees to feel that the employers
were making vast sums of money out
or which sop was thrown to them
to Sribe them into feeling kindly dis
posed or to ward off a demand for a
general increase in wages.
Proposes This Scheme
AS an alternative Mr.. Perkins pro-
posed a definite detailed scheme of
proflt-sharing which he said had been
adopted by some companies with
which he was connected and had
proved most successful. He described
this plan as follows:
"First-EVery buciness has, first of
all. to earn operating expenses, de-
probation. and fair returns on hon
est capitaJizs ton.
"Secon1-I believe that every busf-
ness should consider that the COM
pensation paid employees is for the
purpose of earning a sum of money
sufficient to pay the aforementioned
items.
Third believe that any profits
over and above such sum should, on
some percentage basis, be divided be-
tween the capital used in the busi-
ness and the employees engaged In the
business.
''Tourth-I believe that in neither
case should these profits be tmme-
diately withdrawn from the busi-
ness; that they should be left in the
business for a reasonable length of
time. to protect and increase its fnan-
ctal strength and safety; that in the
case of capital, its share of these
profits should be carried to surplus;
that in the case of employees, their
share of these prodts should be dis
tributed to them in some form of
security representing an interest in
the business. and that each employe
should be required to hold such Sc
curtty for a reasonable length of time,
say three to i've years.
"Fifth:-I believe that the EN-
ployes' share of these profits should
be allotted to them as nearly as pos
sible on the basis of the compensa-
TYwS e. @A&A AN-
bas 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
how much money he is making was
declared by the speaker to be more
than any ether, responsible for the
serious differences to-day existing be-
tween capital and labor for, with the
growing intelligence of the masses,
how can he expect such a situation
to continue? Every year. yes, every
Gay, it becomes clearer and clearer
that such a condition will no longer
he tolerated and must speedily pass
pass away. Would 1t not be better
for him to use some intelligent fore
sight and meet what clearly are to
be tho immediate future demands of
Cooperation Needed
Perkins said that the history of
the relations between labor and cap
ital could be traced through the
term successfully used to denote the
man who worked for q wage and the
man who paid the wage First it was
"owner and slave" then 1t became
master and man." to-day it is "em-
ployer and employ" and tomorrow,
Mr. Perkins declared he believed 1T
must be .partnerA'" In conclusion
he said:
Since the beginning Of time no
country has ever hao such an oppor-
tunity to extend it's trade, increase
its prosperity and better the ma
terial condition of every one OF its
pc oplo as mas the United States of
America at this hour. The only fac
tor missing is that Of close co-opera-
tion here at home among ourselves.
It seems inconceivable that we will
fail to realize where our weakness
lies and Gail to adopt the one and
only remedy for it In the strenu-
Gus competition with the rest Of the
W orld that this country 10 on the eve
of facing could We have q stronger
weapon than complete cooperation
49, -