Show PROFIT SHARING thic THE people of 0 this territory have devoted a great deal of attention to the subject of sharing profits between capital and labor and merchant and customer the recent establishment of a mercantile institution in this city on the equitable operative cooperative co plan is an evidence of the fact that this subject continues con to attract consideration here the chicago news of the lust contains the first of a series of papers upon pon this subject which it proposes u to publish tue toe initial one discusses with considerable ability some of the underlying principles ot of the question and describes several experiments which have been made with a view tb dividing between capital and labor the proceeds of the business in which both are engaged tae earliest experiments of this mud described by this writer were made in F france cc and an account of one made by ryn leclaire eclaire an extensive manufacturer of parts paris which began in 1812 and has worked with great success until now to is riven given the system of M leclaire is somewhat complicated and elaborate but has it Js Is said produced the most satisfactory results while this instance of tho the successful sf ul working ol of the principle of proves that principle to be a right one it also illustrates the difficulty of practically applying it in fact the difficulty of carrying out the principle of profits baring does not aoi lie im in the reluctance of either employed emp loyes or laborers to acknowledge its in a system by which watch that which ils recognized as a benefi beneficent ceEt hmay be successfully sf ully and practically carried out the writer in the chicago news reproduces recommendations made by K N 0 nelson esq a prominent manufacturer of st louis who has given much attention to various methods of profit sharing mr nelson says of a plan adopted by himself any firm or corporation may inaugurate this method without deranging in its internal economy it if profits are esi earned ened a division is based upon the espital employed and the wages paid the ratio of division may vary according to the nature of the occupation or the disposition jot df the proprietor it may be a cash dividend or a stock dividend A reasonable arrangement may be as follows out of net profits pay capital market rate of interest W workmen would gladly become proprietors could they hire capital in this arrangement not only is the capital supplied but likewise an established business coupled with expert management set aside a sufficient guarantee fund tor for possible future losses and as disability and death leave helpless families in destitution credit a axed portion bionto to a provident fund the former insures capital the latter men provision is thus tar far made for a proper accretion to productive capital and at the same time for keeping it and tile the workers in repair what now re maids is a clear surplus and may safely be consumed shall it be hoarded to eventually force out of activity both labor and ca capital ital or shall labe divided among t those ose who have by brains and skill an and patience produced it shall the mo mothers her and children have better houses a and aad ad better clothing co thing more churches and better education less squalor and less leas dependence on charity justice might well dictate that all this surplus should go to those who made it but let us not attempt too much at once divide it equally upon capital and labor combined it if the former be two fifths let it receive two fifths of ef the net profit after the deduc ties enumerated have been made A man earning 1000 per annum would get twide twice as much as the one earning and tour four times as much as the apprentice at 5 per week the process is automatic the rate of salaries and wages is regulated us under the present system presumably according to efficiency if the business stand in need of additional c capital a I 1 alu or tile the proprietor designs to gr gradually retire his investment the dividends way may be partly or altogether paid in certificates of one nature or another during daring recent years a great many business and establish meats in chicago have adopted the principle of profit sharing to a greater or less extent and by an almost endless variety ol 01 of methods some firms alca employed emp loyes to ta take stock in their others pay pat commissions while others distribute bonuses fixed arbitrarily or by rules agreed upon the tendency among the business houses of that city is marked and rapid in the direction ox or riving giving to the wake wage workers wor kera under some plan or other a chase oi of the profits lor for it to is now amply proven that employers by doing mis enlist the best beat talent and energy of which their employed emp loyes are capa capable bAJ prevent disaffection preserve harmony harmany and accomplish many other desirable objects but the full carrying out oat of this system will require an education on the part of both employers and workers whereby each will be made to better understand the principles involved and perfect methods for successfully applying them the interest dobbe now joe in ing taken in this subject by both caal fiand and labor I 1 to Is a good owen omen as aa it cannot result in harm and may lead to the invention and adoption of methods of great benefit to civilized society |