The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-07-11
SELLS
HUGE BUSINESS
TO employees
$50 Workers Get Control of
Columbia Conserve
Plant Here.
BOSS CAN BE FIRED
Amazing Dream of City
Industrial Head True
After 13 Years.

HIlEI 10 ICdI o.
The president of an indianapolis
firm doing an annual business OF
more than $1,5o0,000, voluntarily
placed himself today in the hands
of his $50 employees, who are privi-
legged to discharge him if they see
fit.
William P. Hapgood and his CO.
workers in the Columbia Conserve
Company, today celebrated the thir-
tenth anniversary Of of the
most unusual experiments in Ameri-
car industrial history, when the $50
employees assumed 81 per cent of the
company'S stock and Hapgood n
nounced he would remain at the
lead of the firm only so long as his
co workers wanted him.
Tomorrow Seventy-SiX employees
might vote to discharge Hapgood-
and he would step out of office
without complaint.
Dream Of Years Is True
But Hapgood expects no such de-
velopment, for he long has been
known as the most democratic
member of this first complete unit
of industrial democracy. For thirteen
years he and his two brothers.
Hutchins and Norman (the editor)-
have planned for this day when
they would consummate Americas
first million-dollar business without
a boss"
Columbia employees have acquired
their shares in the business without
paying for it. Profits of the COM
pany simply have been accumulated
and used to purchase the common
stock, which was given outright to
the workers as a group.
MY brothers and 1 have taken
this step to satisfy our own desires
for real happiness" Hapgood said.
Real happiness is not to be bought
with wealth, but only by a right
relationship with our fellows. We
have the hope that our experiment
may hint at possible new solutions
for Americas grave industrial
problems, especially that of UNI
employment"
Wages Based on Needs
1t was in 1917 that the three
brothers inherited the soup plant
and started their socio- industrial
experiment. They made a contract
with their employees as a group for
purchase of the business by a re-
tirement of the common stock from
profits. Features of the transaction
included:
l. Wages are based on actual
need Of the worker, not his eff
cheney or earning power" Thus a
janitor who happens to be the father
of five children may be paid more
than the super-salesman who is I'M
married; or the stenographer who
is a widowed mother may be paid
more than the unmarried executive
who dictates to her.
2. The wage rate is fixed for each
employe by his fellow workers.
There are leaders" but no bosses.
3. A married man automatically
receives so per cent higher wages
than a single man-and he gets 81
a week more for each child up to
the limit Of three children, a limit
set in the belief that more than
three children proves a menace to
any workers happiness.
Weekly Council Held
4. The employees hold a weekly
council, at which every detail.
every important policy, is discussed
and settled. The girl who pastes
labels on the soup cans is at liberty
to criticise the presidents new sales
program-and often does. If a
majority agree with her, the presi-
dents program is rejected.
5. Every employe holds his job
until discharged by the council Of
his co-workers.
6. A sinking fund for old-age
pensions is provided.
Z. Workers or their dependents
who are i'll may be voted financial
relief from company funds by the
workers council.
8. All workers stock is held by
the employees as a group; no
ploye holds stock as an individual,
nor can he hand it down to his
heirs.
On these principles the company
has operated for thirteen years,
and last year did a 100000 bust
ness, with net profits of $4,000
after dividends were paid on pre-
ferred stock. More than $4,000 was
spent for health and welfare work
among the employees during the last
twelve months.
The workers today assumed 81
per cent of the stock and full con-
troll. Eventually the EIapgood broth
ers expect 100 per cent Of the stock
to be held by the workers.
And the slogan of the organiZa-
ton, Hapgood said today, is: From
every man according to his ability;
to every man according to his
needs"