Evening star., 1920-02-08
BUSINESS FIRM TESTS
SHOP COMMITTEE PLAN
Value of Cooperation Between Employers
and Workers Being Exemplihed at
Plant in Wappingers Falls.


but it was without power to enforce
it's recomme ndations.
Village Is Trnnsformed.
A survey of housing conditions was
Immediately begun, and the practical
knowledge of the operatives on the
board was at once aDparent-and also
their desire to maintain business
like attitude toward the problem. That
is. they held that the houses ought
to return A fair interest on the capi-
I al invested. At once great trans
formation began to take place in the
village: reconstruction of old houses.
new paint new convenienceS and even
the removal of several antiquated
tenements. All this was entirely man
aged by the board of operatives. but
paid for by the company. The board
established a fine base ball and ath-
letic field in a natural amphltheater
and playground for the children. and
by winter they had taken possession
of one of the old saloon buildings and
changed it into we'll equipped vii
lage clubhouse which is today one of
the centers of life in the town. They
also began the publication of a month
ly paper called Bleachery Life. dealing
all sides of mill life, including certain
news printed in Italian for Italian
workers. This has been real agency
in awakening mutual interest. Plans
have now been made for selling all
company houses to the workers at low
prices with deferred payments.
The officials of the company kept in
close contact with these developments.
In November of 1918 they were ready to
lay the foundations for the next step:
Mr.. Hatch addressed a mass meeting OF
the workers and outlined the broader
aspects of his new plan. which he caiieo
partnership between workers. manage
ment and capital.
In a partnership each partner. he ex.
planned. shares the responsibility OF
management by taking charge OF the
business he is best qualified to handle:
partners are also entitled to know the
general results of their joint efforts. and
he said that in future the board OF op-
eratives would receive the report of the
ret earnings of the company just as did
the board of directors: and. finally. part
ners share in the final net profits OF the
company and he outlined a new plan OF
profit-sharing between the owners ana
the workers which I shall describe later.
Finally he summed up his attitude to-
ward the whole problem in words which
merit careful reading as a fine express
sion of the new point of view:
''Why 1 am not satisfied with the sys-
tenn of paying wages as determined oy
supp. and demand. i. e.. with paying
as large profits for the company as mar
ket conditions will permit? Because l
am convinced that this system has been
weighed in the scales OF human expe-
rience and found wanting. 1t treats
every employe as a means to an eno. the
end being the enrichment iof the en-
ployer. whereas every man, every
woman and every child is an end in
himself or herself. the most valuable
creations in the universe. To phrase II
differently: Because this system has on
the one hand resulted in poverty for
in hic oil Dl0nIy.
and on the other causing, as 1t does. the
concentration Of great wealth in the
hands of a few. has enshrined the pur-
suit of material wealth as the dominant
life motive of men,"
The Machinery Created.
This was a general outline Of prin-
ciples as yet there was no real ma
chinery for working them out. But
such machinery cannot be created out
needs of the situation. AS the board
of operatives broadened the scope OF
its activities it came again and again
into contact with the deeper problems
of the mill itself-wages. hours and real
control. AS yet 1t could only
make suggestions to the management.
but by May, 1919. it was ready to ask
for more power. The board explained
to the company that 1.-The apathy and
lack of interest with which many en-
ployes view the board of operatives"
were due to the fact that it's powers
did not affect directly those things in
which the employees are most vitality in
terested-matters within the mill, ques-
tions of hours. wages and the various
conditions by which they are surrounded
in their daily work" In response to
suggestions from the management,
which was already considering the re-
duction of the hours of labor in the
nj nf a Skn f0r Nv iDI1t
hour week and for an increase of wages
by Is per cent. At the same time the
board Of operatives felt enough of the
new spirit of cooperation and partner
ship not to stop merely with a demand
for better wages and shorter hours for
the workers, but they offered to do
their part in keeping up production.
They expressed their determination to
produce as much in eight hours as for
merly in ten. and actually suggested the
installation of time clocks to keep a
record Of all employees! They also rec
employees be called and full explana-
tions made in regard to the importance
Of cooperation on the part Of every
one. in order that production may be
kept up and no loss sustained by us
all as partners on account of reduction
of hours"
The next step was a long one. The
company decided to establish a board
of management, consisting of three
members representing the employers
side (the manager of the mill. the
New York agent and the treasurer of
the company. Mr.; Hatch) and three
members chosen by the board of op-
eratives. Mr.. Aurswald, Mr.. Beasley
and Mr.. Clark. This board was given
absolute power Ito settle and adjust
such matters of mill management as
may arise"-practically complete con-
Nf hn will
lock between the~two groups over any
they are empowered to elect
a seventh arbitrating member, whose
deciding vote shall be final. This
board went into control in August,
1919.
PrOnt-ShaPing Plan Adopted.
A profit-sharing system was adopt
ed on these terms: After all expenses
are paid. including per cent interest
on capital. the net profits, whatever
they may be, are divided. half and
half, between the stockholders and
the workers. Mr.. Hess, the agent
(manager) of the mill. has introduced
a complete cost-accounting system. so
that net profits can be known month
ly and dividends are therefore now
declared monthly. The first dividend
to the wage-workers was paid last
August and represented per cent
upon wages earned in the previous six
No sooner. however, is any profit
sharing plan discussed than the prob
lem arises as to what will happen
when losses come. The company has
met this problem by establishing two
funds to be built up out of
profits until each reaches $3.50. 900
one to pay half wages to workers if
the mill is forced to close down, the
other to maintain regular interest on
capital.
These new responsibilities. coupled
with the new opportunities for a real
share in any increased effort, have