278 RURAL RECONSTRUCTION 



About twenty years ago, Mr. Edwin Strutt (who manages the 

 es\ate on behalf of his brother Lord Rayleigh), commenced paying 

 his employees an annual bonus in addition to their wages. This 

 bonus ranges from a payment of £20 to a foreman, £5 to a head 

 cowman, to 40s. to an ordinary hand. The system has been still 

 further elaborated in the case of cowmen, who receive an additional 

 bonus if the amount of milk from their cows exceeds a certain 

 quantity. While certain rough rules of this kind are observed in 

 allocating the bonuses, the exact amount which each one receives 

 rests with Mr. Strutt, whose aim throughout is to reward any man 

 who has done especially good work. The amount distributed in 

 bonuses has varied in different years, latterly amounting to £1,000, 

 and has averaged during the whole period about £700 a year. But 

 this sum bears no exact relation to the year's profits. 



In the year 1906 it was decided to supplement the bonuses by a 

 regular system of co-partnership. The principal particulars of this 

 scheme are as follows : — Any man working on the estate is allowed 

 to invest his own or his wife's savings in the farm. The money thus 

 invested is used as ordinary farming capital. It is withdrawable at 

 any time on a month's notice being given. It is guaranteed interest 

 at 4 per cent., and it receives in addition a full percentage of any 

 additional dividends that may be declared at the end of the year. 

 Thus, as far as profits are concerned, the men investing money on 

 the farm receive all the privileges of shareholders in an ordinary 

 commercial company. In other respects, however, they are subject 

 to certain important restrictions. 



Men are not allowed to invest money which does not belong to 

 them or their wives. Any man leaving Lord Rayleigh's employ is 

 required to withdraw his deposit forthwith. No individual depositor 

 may invest a larger sum than £200. Finally, the entire control of 

 the industry rests with Lord Rayleigh and Mr. Strutt, who decide 

 the manner in which the men's capital is to be employed, and the 

 amount to be put by in any given year for depreciation and reserves, 

 before the additional dividends (over and above the guaranteed 

 4 per cent.) are declared. 



Before declaring dividends the following charges have to be met : — 



(1) Outgoings and current expenses of all kinds, including wages 



and salaries. 



(2) A rent to Lord Rayleigh of about 25s. per acre on all the land 



farmed. 



(3) The bonus amounting to about £700 a year. 



Any sum remaining after all these charges have been met is profit, 



