Evening star., 1938-06-19
PROF|T-SHAR|NC
PROBE IS HAILED
Senator Herring Sees Great
Benefit to Industry
From Inquiry.

The investigation of profit sharing
plans in industry. which a Senate
Finance Subcommittee will undertake
during the recess of Congress. will be
of great benefit to both workers and
employers, Senator Herring. Democrat,
Of Iowa declared in an interview.
According to Senator Herring, who
Is chairman, the subcommittee will
open headquarters in the Federal
building in Chicago and will begin
its work within q week.
The investigation will be conducted
by means of questionnaires and by
visits of subcommittee investigators
to firms which have experimented
with prof1t-sharing plans. It is ex-
pected that the field part of the in
vestigation will be completed by No.
vember is, after which hearings will
be held in Washington. The subcom-
mittee expects to have its report ready
when Congress convenes in January
All Phases to Be Probed.
The subcommittee plans to investi-
gate both successful and unsuccess-
ful proflt-sharing plans. Concerning
the aims and scope of the investi-
cation, Senator Herring said:
"The purpose Of this investigation
is to assemble in one place and In a
convenient form the information re-
lattng to this subject. We believe it
viii be Of great value, not only to
concerns now operating profit-shar-
ing plans, but also to those which may
adopt such plans In future.
I'VE shall study not only profit
sharing plans but other wage inoen-
tive plans and various combinations
Of wage and wage incentive plans. We
desire especially to ascertain the ad-
vantages of straight wage payment
plans, of wage incentive plans and of
various combinations of the two types
and of their effects on the output per
worker and on the attitude of en-
ployes toward their job
1t is the belief of the subcommlt-
tee that by soundly formulated profit
sharing plans industrial concerns can
do much to increase employe output
and encourage the worker to help
make the industry a success"
Will Not Ask legislation.
The subcommittee does not plan, as
a result of its investigation, to rec
ommend legislation requiring indus
trial concerns to adopt profit-Aharing
plans. 1t expects, however. to rec
omn1end tax credits or other forms
Of inducement whereby the Federal
Government may encourage industrial
concerns voluntarily to establish and
maintain proflt-sharing plans for their
employees.
The subcommittee recommenda-
tions also are expected to embrace
the granting of inducements by the
Federal Government to industries
which have or may adopt plans pro-
viding for an annual wage to their
employees.
by the adoption of profit-sharing
and annual wage payment plans"
said Senator Herring, I'VE believe
much can be done also to provide the
purchasing power necessary to absorb
the output of industry and agricul-
ture. BY enlarging and stabilizing
the income of wage earners and other
workers industry would at the same
time expand and stabilize the mar
ket for its own products. And by
this means industry would be en-
abled to proceed at more even pace,
thus reducing the wide upward and
downward swings which have charac-
terized business In the past"
(copyrirht 1898, by the North American
Newspaper Alliance, Inc)