DETAILED ACCOUNT OP VARIOUS SCHEMES. 
49 
24548 
D 
Interest on shares shall be at the rate of 5 per cent, per annum 
whenever the profits of the Society, after extinguishing any 
adverse balance and providing for reduction of preliminary 
expenses, and for any subscriptions due to propaganda organisa 
tions, suffice to pay such interest. Any surplus profit shall be 
applied in forming a Reserve Fund, applicable by resolution 
of any general meeting on a recommendation of the Committee, 
to meet any contingency affecting the Society, or for any other 
purpose, whether within the objects of the Society or not, other 
than the payment of interest on shares, provided that notice of 
every such recommendation be given to every member not less 
than six clear days before such meeting. 
The terms of the partnership agreement which, on July 28, 
1908, was entered into between Messrs. Gilbert Brothers, as 
general partners, and the Society, as limited partner, provides 
that the partnership should commence as from June 30, 1907, 
and should continue until three months’ notice of intention to 
terminate it should have been given by any partner, or until the 
whole of the capital should have been acquired by the limited 
partner. The agreement also provides that, after paying salaries 
to the general partners (the two Messrs. Gilbert), depreciation, 
and interest on capital at 5 per cent., the remaining profit shall 
go to form a profit-sharing fund, until Is. in the pound 
shall have been paid on wages, and, after that, a reserve fund. 
The agreement also provides, that, as the amount of capital 
belonging to the employees increases, the capital belonging 
to the general partners shall be reduced; and that, when 
the two general partners shall have been entirely paid out, then 
the business shall belong to the Employees’ Society as their sole 
property, and be carried on by that Society as a Workers’ Pro 
ductive Society. Of the 92 persons at present employed by Messrs. 
Gilbert Brothers 66 are members of Gilbert Brothers’ Employees, 
Limited. 
Employees’ Investment Society. 
In the case last described, the employees, although capable of 
acquiring shares in their employer’s business, have at present no 
part in the management of its affairs. 
As an example of special arrangements made with the object 
of enabling the employees of a profit-sharing firm to acquire by 
the investment of their bonus not only a financial interest 
ni a business, but also a considerable share in the control of the 
undertaking, may be cited the case of Foster, Sons & Company, 
Limited, of Padiham, near Burnley, a firm of builders and con 
tractors, employing in 1911 from 56 to 80 persons. 
This business was originally a private firm (William Foster 
& Sons), and in that form had already introduced a system of 
Profit-sharing in January, 1900. Under this scheme capital was 
to receive, in the first place, a fixed rate of interest, while the 
remaining net profits were to be divided in stated proportions 
between the firm and its employees, the share of the employees 
being divisible among them in cash, in proportion towages earned. 
In 1903 the business was turned into a joint stock company, 
while, at the same time, an association was formed of the em