The Birmingham age-herald., 1920-12-15

first vice president and assistant gem eral manager of the National Cash Register company, when speaking to large group of employees, said that he wished to get an opinion which would express the desire of the em- ployes not as to the terms, but as to the time when the profit sharing divi- sion for the past six months of this year should be made.
 MT. Barringer put the question to a vote. having suggested that all who desired that their profit sharing checks be paid to them about Christmas time so indicate by rising. Only compara- lively few did in that way record their wish When Mir. Barringer asked for a vote which would show how many desired that their profit sharing pay ments be made after January l, all most all of those who heard him put this request, rose thus si.ynifying that they preferred that the payment be made after January 1.
 So far as the company was con cerned, it made little difference. The amount of net profit in the past six months has been established. It would be easy therefore to make the various proportionate payments at once. But if payments were deferred until after
 
 lector could not demand a payment on account of income until year later.
 MT. Patterson's plan involved the setting apart from the net profits no more than six per cent which was to be the return upon their stock to tae owners of the stock. Then. having subtracted from the total net profits that part which represented dividends to the stockholders, a further division was made in this summer, 50 per cent of the net profits is to be utilized by the company by investing these earn inxs in land, buildings, machinery. in- Vsntions and in enlarging the busi- ness or in other words 50 per cent of the net profits are returned for in- vestment for the benefit of the com pany, a plan which has been adopted with success by some railroad com panies. a
 THEY RECEIVED 50 PER CENT
 The other 50 per cent of the net profits is so divided that one group Of employees receiyeds 12 per cent of the profits, another group per cent of the profits much larger group eight per cent of the profits and the largest group of all, approximately 5000 employees receive 25 per cent of the profits A division of the profit
 
 week in January. The employees are satisfied that the division is honestly made because the profits of the com. pany are determined by an outside firm of accountants.
 In the aggregate the profits thus divided among the employees amount to a very large sum. But the especial value in division of this kind is to be found in the realization by tho em- ployes that these payments are made 10 them not as gratuities or any form of bonus but because fairly represent what the earnings of the employees aooVe their regular wages have been. me checks which the employees will receive m lew days are not form or honorarium but an ackno wledge- ment of service. Alreaedy the benefi- clal effect of distribution of net profits in this manner has been oh- served. It of course tends to stimu late employees to increase production to eilHllhate waste. to perfect reason able economies because if that ha oohe the proportionate part which each employees will receive in his nrofit. sharing will be larger than it would h, were he indifferent This cash reeister experiment now no longer an exneri ment, has been looked upon by in- dustrial leaders as perhaps the best solution Of the problem which, if properly answered, will show how. to establish perfect co-operation betwasn employ CTS and employees There are inumations that other industrial or ganizations will at least after norraI times are restored, establish profit sharing plans similar to that which has been so successfully Undertaken under the leaderhip of MT Patterson