Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1920-12-30
PROFIT SHARING
In MILL FAILS
In FIRST WEEK
Newbern, N. c., Work
ers Drop Experiment
They Urged

NEWBERN, N. c., Dec. 30.-(By
Associated Press.) The proft-shar-
ing system as a means OF averting
strikes is in state of collapse today,
so far as the Newbern Iron Works
and its employees is concerned. One
weeks work under the new idea
found the workers pay envelopes 10
per cent shy and today both men and
plant were idle.
Four weeks ago 76 cents an hour
was the scale in the big foundry and
machine works. A ten per cent wage
reduction was ordered on the ground
that it would be necessary to cut ex-
penses or close the plant. A one
day strike followed. The profit
sharing system was tried at the sug-
gestion of the workmen, but when
the pay envelopes showed a twenty
per cent reduction from the old wage
scale strike was called yesterday.
Company officials said today it
would be necessary to keep the plant
closed unless the employees made con-
cessions
The experiment resulted from de-
creased business due to depression.
The company notified the employees
it would have to reduce wages The
men refused to accent the reduction.
Then the company agreed to let the
emnloves operate the plant, taking
all profits in lieu of wages for pay
ment for their services.
"The rasult will be illuminating"
said ans official of the company.
"Amon many employers there was
settled conviction that labor could
not expect to continue to receive
wartime wages. Among labor lead
ers was determination not to sur
render pay increases or the new
tandard of li,ving~ss aich workers
Saw Second Cut.
The company saw itself faced with
the alternative of reducing its wages
or closing its doors, following the
SLUMP in the price of tobacco and a
corresponding reduction in the pur-
chasing nower of the people of this
section. It nut 10 per cent cut in
to effect several weeks ago. The men
walked out.
The strikers pointed out that while
there had been reductions in the cost
of living, so far as garments and
shoes were concerned. there had been
practically no reductions in food and
rent.
eve can save on clothing" they
said, "but we must feed and shelter
our families"
The management opened the books
and the men accepted the reduction.
Conditions, however, got worse and
it appeared that the management
would have to make second 10 per
cent reduction in wages or continue
to operate at heavy loss.
AGAIN the employees were called
into conference. but they refused to
accent anv further reduction
Dent close down: let us operate
the plant" said their spokesman.
"You deduct the cost of operation
ard let us have the profits that re-
main for our wages"
"Agreedp was the answer.
Office Workers Excluded.
The agreement excluded the office
workers, who had accepted the 90
per cent reduction in wages rejected
by the oneratives. They were to be
paid ont of operating expenses.
E. L. Willis. president of the, com
panv and other officials expressed
themselves as willing for the en-
ployes to have all they could earn on
the profit r-rstem.
Tho oorapanv oYorahaS - 1o~r.o
foundry and furnishes machinery and
mill supplies 20 lar~e section Of
eastern North Carolina.