PARLIAMENTARY PUBLICATIONS. 



[Sept. 1894. 



the systems of this kind described as being in operation at the 

 date of the report is one which was adopted early in 1886 by 

 Earl Spencer on a farm of 296 acres at Harleston. 



Lord Spencer provides the requisite capital and appoints a 

 manager, under whom eight labourers (associated as the " Har- 

 leston Co-operative Farming Association ") and two boys work. 

 He may also determine the connection of any co-operator with 

 the scheme, and may depute the buying and selling of stock 

 and produce to his own nominee. From the gross revenue 

 deductions for outgoings are to be made, including deductions 

 for the rent, rates and taxes, and 4 per cent, interest on the 

 capital employed. Of the net profits, 75 per cent, go to a reserve 

 fund to be accumulated until the whole of any capital advanced 

 by or due to Lord Spencer, with interest, shall have been re- 

 deemed, and a surplus of 1,000^. realised and maintained ; the 

 balance of profits is to be divided annually among the co- 

 operators (including the manager) in proj)ortion to wages 

 earned, but should a loss be made, then, if a balance of profits 

 exists in any subsequent year, this balance is to be carried to a 

 reserve fund until the loss shall have been made good. Canon 

 Bury, the hon. secretary of the association, writes that there 

 has been no opportunity of testing the system of profit-sharing 

 as there have been no profits to share ; the continuous fall in 

 prices caused the men to lose heart, and as the whole secret of 

 success lay in the work being done with greater zeal and 

 earnestness, and therefore done cheaper, the scheme may be 

 said to have failed. 



A more successful experiment is that which was initiated in 

 1886 by Mr. Albert Grey, who farms a considerable extent of 

 land in Northumberland. This gentleman is said to have first 

 adopted profit-sharing in the year mentioned in relation to 

 the East Learmouth Farm and to the Howick Home Farm, in 

 1888 in relation to the farm of Chevington Moor, and in 1889 

 in relation to West Learmouth Farm. Since May 1891 the two 

 Learmouths have been worked together as one undertaking. 

 The system now in force in regard to the Learmouths is that 

 after the fixed charges of rent and interest (at 4 per cent.) have 

 been met, 25 per cent of the profits is carried to reserve fund, 

 25 per cent, is allotted to management (of which two-thirds goes 

 to the head manager, and the other one-third is divided equally 

 between the stewards and the head shepherds), while of the 

 remainder one half goes to Mr. Grey, and the other half is 

 divided between the labourers in proportion to the wages earned 

 by each. It is provided that if the gross profits for any one 

 year should fail to pay rent and interest on capital, the deficit 

 must be made good out of the net profits of succeeding years 

 before any bonus can be distributed. The objects to which the 

 reserve fund is to be devoted are (1) to make up the annual 

 charges of rent and interest in bad years ; (2) to provide 

 superannuation allowances ; (3) to supply money " for any 



