The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1919-10-09
Profit Sharing
The Workers Fair Share
BY GEORGE w. PERKINS.


New York.-(speeiai) --speakino at
the annual meeting OF the National
Civic Federation on "Profit Sharing, or
the Workers Fair Share" George w.
Perkins said, In part:
1.-THE Workers Fair Share" has been
q real problem ever since the world
began. 1t has changed greatly as civ
i)lzation has progressed. and has
crowded harder and harder for solu-
ton as intelligence and education
have spread and broadened.
The workers fair share was an un-
solved problem when the expression
that designated the relationship be-
tween the man of capital and the man
Of labor was owner and slave" 1t
still existed when the expression of
relationship became master and man.
It still exists in these days, when the
expression of relationship is "em-
ployer and employee" These very
changes In the expressions used TO
designate the relationship between
capital and labor show that steady
progress has been made toward solv-
ing the problem of the workers fair
share.
take it that everyone believes that
ne cannot go back to the old condl-
lions; that we must move forward to
an even better relationship than that
expressed by the term employer and
employee You ask: "What is this
newer relationship to be and what term
will express it?" I answer that l be-
lieve it must be partners" II l am
right, then the next question Is how
can this relationship be worked out
50 as to bring the best results to all
concerned?
Twenty-Five years ago became con-
WINGED that only through profit sharing
that was real, honest and open could
we hope to find anything like salts
factory and permanent method Of ar
irving at the workers fair share.
Profit Sharing Not Philanthropy.
do not look upon profit sharing
as philanthropy or form of benevo-
lence. do not put it in the same class
with gifts at Christmas-time or bonuses
at the end Of the year. l do not ap-
prove or believe In any plan. that even
savors Of giving man something for
nothing.
The profit sharing believe in is the
kind that is real; the kind that pro-
notes thorough and efficient co-opera-
ton between employer and employee;
the kind that makes partners OF
employees; the sort of profit sharing
that is practiced between partners in
business. Anything short Of this Is
bound to result in failure and will
widen rather than narrow the breach
between employer and employee.
Close observation, coupled with con-
siderable experience. has convinced
me that practically all the many fail
ures in profit sharing, both in this
country and In Europe, have occurred
because at bottom the plans were not
honestly devised nor eQuitably worked
out.
In the past the man who was not ed
ucated or trained to think independ-
entity struck because he wanted So
day If he was only getting $1.76, and
for quite a period labor differences
were settled on this basis believe
that we are rapidly passing out Of that
period, for our labortng people are 50
well educated and so able to think in
dependently that, in many cases, they
are no longer striking for definite in
crease in wages, but for what they re-
gard as fairer proportion Of the
profits Of the business in which they
are engaged.
If l am right about this, then we are
rapidly leaving behind the period when
labor disputes could be settled by 4
mere increase In wages and are enter
ing the period when profit sharing In
some form must be practiced
Outline Of a Correct Profit Sharing
Plan.
A good many years Of actual expert
ence have made me very optimistic re-
garding profit-sharing plans worked
out along the following lines:
First-Every business has, flrst Of
all, 10 earn operating expenses de-
probation and fair returns on honest
capitalization.
Second believe that every bust
ness should consider that the compen-
sation paid employees is for the pur-
pose Of earning sum of money sum-
cient to pay the aforementioned
items.
Third believe that any profits
over and above such sum should, on
some percentage basis, be divided b.
tween the capital used in the business
and the employees engaged In the bust
ness.
FOURTH believe that in neither
case should these profits be immedi.
ately withdrawn from the business:
that they should be left in the business
for rea sonable length Of time to pro-
ftect and increase its financial 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 prof