Evening star., 1938-12-06
Continued From Page A-11)

ship" These fears seem to be un-
founded, since signally successful
plans are reported as having been
in operation from a quarter a CEN
tury to a half century or more.
1t is argued by some that profit
sharing will of necessity raise
wages Others assert that Its
operation will reduce wages"
AS to the effect on wages, the one
positive result of profit-sharing, ex-
cept as affected by broad general
economic changes, appears to be
that 1t tends to stabilize wages, and
provides such permanency of en-
.1loyment as to reduce the labor
turnover to fraction of normal.
Contention Disputed.
There are those who claim that
the sharing of profits cannot be
differentiated from wages" hence
that it all is added to the wage scale
and that the strife to secure more
and more will continue.
The testimony of employers with
most successful plans indicates that
this result does not follow. We are
familiar with plans under which
the employe attaches no relation
ship whatsoever to his wages and
his share in the profits.
There is the quite prevalent be-
lief that employees will support and
approve a prof1t-sharing plan while
profits are being made, but that
they will become resentful when
losses occur and profits are not
available for distribution under the
plan. A number of companies have
testified through their executives
that no such condition prevails
among their workers.
The record of profit sharing ex-
perience indicates its application re-
quires intelligence and study. Too
many overlook or ignore psychology
ical factors which are as important,
If not more so, than the dollars i'm.
volved.
The principle of sharing is
grounded in the traditions of the
American system. To broaden the
base, and increase the number of
participants and to instill personal
consciousness of the individuals in
terest in the profit system" is to
mobilize an unbeatable defense of
the American capitalistic system
and make democracy triumphant.
The triumvirate of industry
capital, management and labor
should now, as never before, be
united against the enemies who
seek to destroy them.
The brilliant success achieved by
many companies which have
adopted profit 1t-sharing plans suited
to their needs is perhaps proof that
others can do it if they have the
will to do it.
Voltaire said: IF nation can be
made to think. nothing can stop it,"
Undoubtedly Voltaire meant nothing
could stop the nation from achiev-
ing success, progress and prosperity,
and the fulf1llment of the highest
destiny of mankind. Conversely, I
would submit-if nation ceases to
think, nothing can prevent its ulti-
mate degeneration, dissolution and
decay.
Who can estimate with accuracy
the cost of the misunderstanding
between employer and employe-
not alone to them - but to the
American people? The financial
burden of strikes and lock-outs-
the inevitable antagonism with their
moral consequences - the loss in
man days and workers wages-the
enforced curtailment of output,
which affects the entire system Of
production and distribution all the
way down to the clerk and delivery
boy in the retail store-the reduced
purchasing power-the increased re-
lief load?
The total cost probably would be