Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1920-10-28

IAborS AttItuoe ana OF inc TToPo'
ton Of Failuses and Doubtful Re.
suits Lies In Their Bearing Upon
the Possible Value Of Profit Sharing
~ an Industrial Remedy Of General
Application.
Profit sharing In one form or an
other has been and Is being tried on an
extensive scale IN American Industry,
In many cases 1t Is not proving suc:
cessful. The entire field of experiment.
tation is reviewed In report just IT,
sued by the executive council OF the
National Civic Federation. This ~:
port and testimony covering every
phase of the subject have been gath
cred from far and wide. AS to the
general value Of profit sharing, the Fe'
port states:
1.-THE considerable percentage of du'
bious results shown by this inquiry
should not lead to the sweeping con.
clusion that all profit sharing expert
ments are worthless. Many Of them,
from the standpoint Of special local
conditions or by contrast with some
previous order Of things. no doubt
show q net improvement In the well
fare OF this employees affected and the
morale of the plants. The real signifi-
canoe, both Of the organized labor at
titude and Of the proportion of fail
ures and doubtful results, lies In their
hearing upon the possible value OF
profit sharing as an industrial remedy
of general application.
"This, In turn, involves consideration
Of the fear of organized labor that the
employers real interest In profit shar-
ing lies In its alleged usefulness as
means to weaken and disrupt the trade
unions. and that with this once accom-
plished the employing interests would
be free to regulate wages and hours to
suit themselves, with no effective
equality of bargaining power left In
the hands Of the workers.
10 Large Problem.
ut is not In the scope OF the present
inquiry to examine the merits OF organ
lied labor's objection to profit sharing.
nor to determine whether the interests
Of labor generally would be safer I'M
der profit sharing than with the eco
nOmic power Of organization In Its own
hands. This Is a very large problem
in itself, second to few others in its
bearing upon the future OF our indus
trial and social institutions. Its gray
ity should be borne In mind In any con
sideration of proposed substitutes for
the means which so important an ele-
ment of the wage-earning class has
considered necessary to secure Its
rights and advance its welfare, ever
since the beginning of the modern In
dustrial system.
"In general, the advocates of profit
sharing the report continues, "elli'
phasize the following arguments: II
promotes more continuous service; re
duces cost of production, secures more
regular attendance at work, builds up
confidence and creates spirit OF CO.
operation; gets rid of rolling stones;
encourages home building; enables
company to keep Its employees during
rush seasons; keeps down expenses;
induces statesmen as well as others In
terested to work harder; promotes eff
cheney, interest and loyalty, and In
creases the profits of the business"
On the other hand we have the OPP
posite of the question.
1.-THE efforts of the employers were
not appreciated by the men,; the re-
port continues. "they seemed to prefer
their total earnings in fixed wages
with no variable element; they were
suspicious Of the employers motives;
they insisted upon joining unions and
presenting demands In spite OF the EN-
ployers' efforts to give them share In
the extra gains of the business; when
stock was sold to employees upon fa-
vorable terms they would dispose of 1t
at n profit when the value rose, ana
so got the habit of watching the stock
market. When the profit distribution
was large the employees learned to ex-
pect a similar bonanza every year. and
were disgruntled II they did not get 1t,
to say nothing Of their discomfort II
conditions forbade any extra payment
at all; and all schemes Of this sort
are necessarily complicated and hard
to understand, so that the workers, es-
pecially Of the less intelligent grades,
are not easily convinced that the sys-
tenn really benefits them and ism:
merely a device to withhold part OF
what they might otherwise demand
and get"
The late George W. Perkins, the first
representative of the big interests to
advocate "real profit sharing" ex-
pressed some very optimistic opinions
upon this subject.
'Pertins' Views.
II believe" says Mr.. Perkins. "ev-
cry business has. first Of all. to earn
operating expenses, depreciation and
fair returns on honest capitalization.
Every business should consider that
the compensation paid employees Is
for the purpose of earning sum of
money sufficient TO pay the above men,
toned items. Any profits over and
1n,,,. such sum should on some per-
"'nar basis. .be divided between the
,'r;si used in the business and the
o"rrs pligag god In said business. In
:, ,:'sp should these profits be i'm
aiely withdrawn from the bust
e.: they sho, nj hr left in the bust
ness for reasonable length of time,
to protect and Increase Its financial
strength and safety and in the case of