Profit-Sharing. 



31 



this sort. It was agreed that at the end of the year the net income 

 should be divided into three equal parts — one for the laborers, another 

 for the company and one for a reserve fund. The labor dividend should 

 be paid annually and before the dividend to capital. No officer, over- 

 seer, clerk or sub-contractor must share in the dividend. The true 

 value of all labor contributed shall be determined by the amounts 

 earned and credited to each workman as wages for labor performed 

 during the year. Accounts shall be examined by auditors mutually 

 agreed upon, and laborers arbitrarily discharged or necessarily de- 

 prived of work shall not be debarred from receiving their share of the 

 dividend. Disagreements shall be settled by arbitration and a bill of 

 prices shall be mutually agreed upon on or before January 1 of 

 each year. No reduction of wages shall be made to affect any con- 

 tract on hand, and in case of an increase of rates on any contract, the 

 difference may be adjusted in making up the dividend. A leading 

 firm of clothiers in New York city explained its plan to its employees 

 in this way : " The purpose is to set aside a certain percentage of our 

 net gain as ascertained at the end of the year, and with that sum de- 

 clare a dividend upon the total amount of wages paid to those who 

 work under our own roof. Whoever has earned even so much as a 

 week's wages will participate, provided he was not discharged for 

 cause. Upon the basis of our last year's business you would have re- 

 ceived nearly five per cent upon the total of your year's earnings. 

 In other words, the man who drew $20 per week, or $1,040 during 

 the year, would have had a check for nearly fifty dollars. We 

 make no promises on the score of amount. We hope this year will 

 yield better results. It may not do so well. The determination of 

 that is largely in your hands. If any thing is made, whatever it may 

 amount to, your share shall \>v faithfully distributed; you can trust 

 us for that." On this basis three per cent was distributed in 1888 

 and five per cent in 1889. 



The leading merchant of Philadelphia, John Wanamaker, two 

 years ago issued a circular, stating that all who had been in the 

 employ of the house for seven years, and such others whose term of 

 service shall hereafter reach that length of time, are to participate in 

 the profits of the business. All employees who do not come in the 

 seven-year class are to have added to their regular salaries a sum each 

 week graded by their sales. In the clerical, packing, invoice and 

 various offices, a civil service system is to be strictly followed in 

 making promotions and advancements. The record of each person in 

 the employ of the house will be carefully kept and will govern all 



