DETAILED ACCOUNT OE VARIOUS SCHEMES. 
39 
Profit-sharing Deposits. 
A type of Profit-sharing possessing much interest is that in 
which the right to participate in profits is made contingent upon 
the employee’s investing money with his employers, and takes the 
form of a rate of interest on the employees’ deposits varying with 
the profits of the business. A system of participation of this 
natux-e was, in 1866, introduced by the firm of Fox Brothers & Co. 
(converted in .1896 into a joint-stock company), of Wellington, 
Somerset. This firm of woollen manufacturers had for some time 
allowed its managers, foremen, and clerks to l'eceive a bonus calcu 
lated in part according to the year’s profits, in part according to 
the status of each. In 1866 they introduced a plan of receiving 
from their workpeople sums of money on deposit, to bear a rate of 
interest never less than 4J per cent, nor more than 10 per cent., 
but within these limits varying “ in accordance with a certain 
fixed scale based on profits, which has been prepared by Messrs. 
Fox Brothers and Co.” The firm undertakes to repay any sum up 
to £50 on seven days’ notice, above £50 on two months’ notice. 
The total number of persons at present employed is 1,561, of whom 
239 (186 men and 53 women) are depositors under the scheme. The 
opinion of a member of this firm, Mr. Joseph H. Fox, in respect 
to the x’esults obtained by the system just described was set forth 
by him in a paper read in 1881 before the Social Science Associa 
tion ;* and in connection with the present inquiry he states that 
he does not think that the experience of the years that have 
passed since the paper was read has in any way modified the 
views therein expressed. 
After mentioning that the system had been thoroughly appre 
ciated by the workpeople, Mr. Fox continues : — 
“ Secondly.—There has been scarcely any trouble experienced in carry 
ing it out, and I am not aware that there has ever been any complaint 
made of the rate of interest given, although this has varied from 4-1 per 
cent, to 10 per cent., nor am I aware that it has ever been suggested that 
the rate of interest was unfair, or any wish expressed to know how it was 
calculated. The decision of the partners has in all cases been accepted 
without question. 
Thirdly.—It has on one or two occasions happened that, when a high 
rate of interest has been paid, applications for increased wages have 
followed, it no doubt being thought that as the'business had been pros 
perous, a better rate of wages could be afforded. 
“ Fourthly.—It is very difficult to form an opinion as to the effect pro 
duced on the carefulness and attention of the workpeople, and whether in 
this sense the scheme has answered. I believe it has in the case of many 
of the foremen and others in places of trust, but these have had, it must 
be remembered, an additional stimulus from their being partly paid in 
accordance with results. But with the ordinary workpeople there is not 
so much scope for showing interest, and as they nearly all work by the 
piece, it can produce but little effect on their industry. There are, of 
course, many ways by which economies may be effected—by the saving of 
material, by care of machinery, and in other ways; but it is very difficult 
to form a definite opinion as to the results of the scheme in this important 
respect. It must be borne in mind that in a manufacturing business the 
skill and judgment shown in the purchase of the raw material and the sale 
Transactions of Social Science Association, 1881, pp. 671-675.