Profit-Sharing in Agriculture. 
783 
fixed rate of interest, and otlier necessary deductions for depre- 
ciation and reserve had been made, should be divided between 
labour and capital in proportion to the money value of the 
services rendered by each — i.e., if an industry were to pay 
IjOOOL to the labourers for the use of their labour, and 500L 
to the capitalist for the use of his capital, then two-thirds of 
the net profits should go to labour and one-third to capital. 
This principle, which I observe has been adopted by Mr. Boyd 
Kinnear. was laid down by the late Monsieur Godin of Guise 
as one which was demanded by expediency no less than by 
justice. 
The only consideration which prevented my applying to 
East Learmouth this principle of division, which still appears 
to me to be the fairest prhiciple which has yet been formulated, 
was that in this particular instance of Learmouth Farm the 
proportions would have been the other way, since, inasmuch as 
the farm pays twice as much in the shape of rent and interest as 
it does in the shape of wages, only one-third of the net profits 
would have been available for the employes. I was afraid that 
the prospects of advantage held out to them by this proportion 
would have appeared so small that they would not have had 
sufficient inducement to co-operate with me in the way I 
wished in an endeavour to make the experiment a success. 
So I thought the best way to accustom them to the principle 
of profit-sharing, and to make them realise its advantages, would 
be to adopt the simplest possible form of division, and, after the 
fixed charges of rent and interest had been met and a certain 
percentage of profits had been paid to a reserve furd, to divide 
any surplus profits that might remain in equal proportions 
between them and me, the half going to labour being divided 
among them in proportion to the wages earned by each. 
Acting upon this principle, I was able to give to the workers 
for the year ending May 12, 1888, a bonus of Is. in the pound, 
or an increase of 5 per cent, upon their wages. For the year 
ending May 12, 1889, the profits only amounted to 29Z., 
which sum was placed to reserve, being too small to admit of 
an appreciable bonus being distributed. For the year ending 
May 12, 1890, the workers received a bonus of Is. l\d. in the 
pound, or an increase upon their wages of 5^ per cent. 
For the year ending May 12, 1891, the profits amounted 
to 19U. In the division of this sum I adopted a somewhat 
diff'erent plan. Before I proceeded to the division of profits 
between labour and capital, I took 25 per cent., or 47/. 18s. Gc?., 
and added it to the reserve-fund. I next put aside another 25 
per cent., or 47/. 18s. Qd., for the reward of management. This 
