The Washington herald., 1920-03-31
CBy n stan Correspondent.)

Dayton. Ohio, March 80. - For
thtrty-siX years a fair proportion of
the worlds spenders have seen their
money disappear in John II. Patter-
sons cash registers. They have
heard the click of the mechanism
and watched the shutting OF the
cash drawer without giving a
thought that something might be
out of gear in the place where all
this money machinery came from.
Mr.. Patterson. president OF the
National Cash Register Company,
doesn't admit that anything is, or
has been wrong with the concern OF
which he is president and principal
owner, but whether right or wrong
he Is entering upon the experiment
of making capital and labor ring
up their profits on the same register.
The plan itself, which was started
In small way three years ago. has
no great measure of novelty, but the
manner of the division of the profits
comes within the realm of expert
ments."
Affects 1000 Employees.
The plan is big in its scope. When
ii was first started Il involved only
35 men. This was ancreased to 400,
which number included executives,
supervisors and foremen. Now 1000
employees, men and women. will be
affected. 1t is a "ifty-ifty" propo-
sition, fifty per cent to those who
turn out a machine every sixty Sec
onds and fifty for the company.
First. however. six per cent interest
on the company's investment will
be deducted as stockholders divi-
dend.
The company's portion, the fifty
per cent, is not counted as a divi-
dend but is for the purpose of in
creasing the business, the purchase
of machinery, upkeep and as a fund
for depreciation. The fifty per cent
for the employees in the nature of
bonus. So far the plan is according
to recognized methods of profit
sharing.
When, twice annually, the net
profits are distributed. a few more
than 500 men, all highly paid. pull
down, as their share, twenty five
per cent of the portion assigned to
the employees. The $500 get the
other half. Here is where Mr.. Pat
terson enters upon the great expert
ment.
Brains should be rewarded above
all else" was the dictum of the con-
trolling factor in the company when
attention was drawn to the SEEM
ingly unequal distribution.
The official who is drawing the
biggest salary is entitled to the
largest share of the profits. With
out Understanding the Importance
of the man who labors with his
hands, 1t Is headwork which in the
last analysis makes profits possible.
The amount depends upon the fore
sight, the care and thought eX-
pended by those who, in greater or
lesser degree. are denominated as
the management
This management is divided into
three classes. Glass "A" comprises
executives and supervisors, in all
about IS. These receive 12 per cent.
Glass "B," comprising foremen.
consisting Of IS or more employees.
will receive s per cent. Class c.
is made up of Job foremen and
other employees holding equal posi-
tions, to the number of 400, s per
cent being allocated to this class.
All the Rest in Class asD.,
The $500 or more will divide the
rs per cent which is left. This
class ID" comprises all who have
been in the employ Of the company
for thirty days or longer, but in
every class profits will be distrib-
uted in proportion to tho wages re-