32 



Profit-Sharing. 



changes. There will also be a special honor list, "for the more rapid 

 preferment of those showing marked business ability, rapid improve- 

 ment, diligence, economy and usefulness." The distribution for the 

 first year was $109,439.68. The employees of the store were called 

 together at the expiration of the second year, in May, 1889. At that 

 time $46,082.29 were paid, which, added to $58,263.29 already paid, 

 made a total of $104,345.68. The following statement was made by 

 the proprietor : "In two years we have paid the usual salaries and 

 exactly $213,785.39 more by this free-will distribution. Not one per- 

 son, to the best of my knowledge and belief, would have had any 

 larger salaries had this plan of distribution not been in force ; so that 

 it is out of our pockets into yours, and without any obligation on our 

 part except good will and interest in the welfare of our good people. 

 Under a system of monthly examinations of individual records, all 

 our clerks have had proper consideration according to merit, and per- 

 haps a few salaries have been reduced as above value of services, while 

 many have been advanced without solicitation. This is the present 

 and future policy of the house. The checks given out to-night might 

 all have been larger, and it is a disappointment to me that they are 

 not. You have it in your power, by your enthusiastic and earnest 

 efforts, to increase or diminish what the firm has set aside for this dis- 

 tribution. I wish to do two things by this plan : First, to give actual 

 proof of heartfelt interest to our people ; second, to solidify the people 

 into one mig*hty and perfect force to increase the business for the 

 benefit of themselves and their employers." 



In May, 1889, the Bourne Mill Corporation, of Fall River, Mass., 

 adopted a plan to provide sharing with its employees. It was proposed 

 that every man, woman and child continuing in the employ of the 

 company, from July, 1889, to January, 1890, should receive some 

 share of the profits, to be paid in cash on the 10th day of February, 

 1890, in proportion to the wages earned for the whole six months, and 

 that the total amount divided shall not be less than six per cent of 

 the amount of cash dividends declared and paid to the stockholders 

 during the same time. The only condition was faithful and continu- 

 ous service, except on account of sickness or any other sufficient rea- 

 son. A well-known publishing house in Chicago has tried the profit- 

 sharing system for several years. About twelve years ago, when the 

 capital stock of the firm was $200,000, it induced its foreman and 

 heads of departments to buy five shares of stock at par, to be paid for 

 at the rate of not less than $1 per week. Notes bearing six per cent 

 interest were accepted when the employee did not wish to pay cash. 



