92 IV.—CONVERSION OF ORDINARY BUSINESSES INTO 
CO-OPERATIVE SOCIETIES. 
J 
rate of per cent, on their wages. In 1896 no bonus was paid, 
the profits of the preceding year not having been sufficient to 
permit of such payment. The only other available information 
in regard to this Society is that in November, 1897, the share 
holders passed a resolution to go into voluntary liquidation in 
consequence of its not being able to meet its liabilities. 
HASLEMERE BUILDERS, LTD. 
The third of the cases in which an ordinary non-co-operative 
business has been converted into a Co-operative Society is note 
worthy in this respect that, prior to this conversion, the employer 
in question (Mr. Herbert Hutchinson, architect and builder, of 
Haslemere, Surrey, employing some 150 persons) had for some 
time had in operation a scheme of Profit-sharing, his employees 
sharing in the profits of the business, but not owning any 
part of the capital. The profit-sharing scheme provided that, 
as from January 1, 1897, the surplus of the gross profits, after 
paying wages and salaries, including salaries of managers and 
principal, and the cost of materials, rent, taxes, insurance, office 
and travelling expenses, depreciation of plant and other out 
goings, should be distributed as follows: —(1) A sum equal to 
4 per cent, of the total outgoings in those jobs which should be 
executed by the firm without the superintendence of another 
architect, and 80 per cent, of the commission for work surveyed 
or designed, but not executed, by the firm, and for all agencywork, 
should be divided (in proportions to be agreed between them) be 
tween the principal and the two managers by way of extra salary; 
{2) interest at a specified rate; and (3) a sum equivalent to 3£ per 
cent, of the total outgoings was to be divided between the principal 
and managers by way of extra salary. The balance was to form a 
Bonus Fund, part of which (88 per cent.) was to be distributed 
in cash, the rest (12 per cent.) being carried to a Provident Fund 
for the benefit of the employees; but in no case, unless one or both 
of the posts of managers should be in abeyance, was the principal 
to take any share in the Bonus Fund. 
The cash part of the Bonus Fund was to be divided in the follow 
ing proportions : —30 per cent, was to go to the managers, 8 per 
cent, to the foremen, and 50 per cent, to the clerks and workmen, 
being distributed (save in the case of piece-workers and sub-con- 
tractors and their men) in proportion to their wages earned during 
the year. The accounts of the firm were to be audited and the 
division of profits certified by a chartered accountant. 
In 1898 the employees received a bonus (cash bonus plus sum 
credited to Provident Fund) equivalent to 91 per cent, on their 
salaries and wages, but no distribution of bonus took place in 1899 
or in 1900; in 1901 46 employees received a share in the profits 
earned in 1900 equivalent to a little over 1 per cent, on their 
wages. Mr. Hutchinson found the results of the profit-sharing 
arrangements “most discouraging.” He attributed the unsuc 
cessful financial results of the business to the want of energy and 
carefulness displayed by his workmen generally (especially on