SAMUEL CABOT. 553 



" It seems to me obvions that, if we can draw any inference from 

 these facts, it is that, inasmuch as my profit compared to the wages 

 paid has increased, the efficiency of my workmen has improved. 



" But, above all, my own observation has convinced me that the 

 morale of my employees is much superior to the average, and that they 

 are more contented and willing by far than is usual in similar establish- 

 ments. In fact, I am satisfied that this bargain has been a good bar- 

 gain, a good one for both parties to it, and that the extra money I have 

 laid out has been well and profitably invested. 



" I have, for obvious reasons, not laid any emphasis upon the philan- 

 thropic side of this enterprise, especially as I am sure it can be recom- 

 mended to many, if not to most, manufacturers, and to their employees, 

 purely upon its utilitarian advantages ; but it is obvious that it stimu- 

 lates both sobriety and thrift in workmen, and that it can be made to 

 assist men of family to build homes for themselves, thus surrounding 

 the factory with the homesteads of men who are interested in its 

 success and that of the neighborhood. 



"From my seventeen years' experience, therefore, gentlemen, I can 

 cordially recommend profit-sharing on this or a similar plan as of 

 marked advantage to both employer and employed." 



I have quoted this paper almost entire, because it seems to me to 

 show the man — his desire for the good of others, joined to sound busi- 

 ness common sense, and the practical wisdom needed to make the 

 scheme effective. That it was effective is shown by the fact that, 

 when a new hand was inclined to be indolent, the other workmen 

 insisted on vigorous work from him if he was to stay in the factory, 

 for, said they, " We will not have our profits cut down by the lazy or 

 inefficient." It will be observed that the success of this system de- 

 pended on an absolute trust on the part of the men in the upright- 

 ness of their employer. The slightest suspicion that it would not be 

 carried out equitably, or that in some underhand way it would redound 

 to the profit of the chief, would have wrecked it at once. And here 

 the comparatively small number of men was a potent factor, as they 

 were all able to know Mr. Cabot personally, and to realize his absolute 

 honesty and fairness. That they also learned to love him appeared 

 from the impressive sorrow with which they attended his funeral. 



This absolute honesty and fairness was also conspicuous in his busi- 

 ness relations. He would often make concessions beyond what could 

 be justly demanded, if he thought the claim was made in good faith, 

 while, on the other hand, he would not yield an inch when this was 

 not the case, but proved a dangerous and pertinacious adversary. In 

 one case at a very early stage in his career a man who had circulated 



