40 
tl.—PRIVATE FIRMS AND COMPANIES. 
of the goods are important factors, and that when a large amount of raw 
material is worked up, and when the stocks both of raw material and 
of manufactured goods are necessarily heavy, and when there is a 
constant fluctuation in prices, the apparent profits are much affected 
by these fluctuations. These matters are, of course, outside the work 
people, and they feel that their exertions may he in part neutralised by 
other causes not under their control, and this operates prejudicially on 
the working of this scheme. Could they clearly see cause and effect, and 
directly trace the results of their increased watchfulness in the increased 
prosperity of the business, then their participation in the profits would 
probably have more definite results. 
“ Fifthly.—There is no doubt that the management of the business 
by the partners is much more closely watched by the workpeople, and 
especially by the foremen and others in places of trust. 
“ Having thus endeavoured to describe some of the results of the plan 
carried out in our works, I will attempt to point out some of the lessons 
that these appear to me to teach, and also to state some of the difficulties 
that seem to me to threaten all schemes the object of which is to make 
the employed participators in the profits with their employers. 
“ First.—Unless a sufficiently large share of the profits be given, the 
desired effect will not be produced, that is to say, that increased attention 
and intelligence will not be aroused which are necessary to ensure its 
success. 
“ Secondly.—The larger the interest given to the employed, and the 
more their prosperity depends directly on the prosperity of the concern, 
the greater will their influence become. As long as a business is prosperous 
and well managed all will go on well; large profits will be divided, 
and the employees will be satisfied. But when bad times come, either 
from depression in the trade carried on, or from bad management, then 
difficulties will arise, the workpeople may become dissatisfied, and in the 
latter case especially may insist on the management being changed. In 
any case, the difficulties of the principals will be greatly increased, and 
they may come into awkwmrd collision with their workpeople. 
“ Thirdly.—I fail to see that the introduction of industrial partnerships 
will altogether solve the wages difficulty. Divide the profits as you will 
between capital and labour, it will always be a question open to dispute 
whether that division is a fair one. It is true that by introducing plans 
whereby labour is to share directly in the profits made by the joint action 
of capital and labour the total profits earned may be augmented, and the 
earnings of the labourer be also increased, yet after all he may remain 
dissatisfied with his share, and may demand either an increase of wages 
or a larger share in the profits. 
“ In conclusion, it seems to me that the experience gained by the work 
ing out of the scheme adopted by us shows that when the basis exists of 
an excellent understanding, and thorough goodwill between the masters 
and workmen, and whep the share of the profits given to the latter is not 
too large, then, the system may be carried out successfully so long as the 
management of the concern is good and the business prosperous, but 
that the results on the profitable w'orking of the business are somew'hat 
dubious. It has, however, the advantage of avoiding to a large extent the 
difficulties which might arise were the share of profits divided among the 
workpeople to be on a larger scale.” 
A system of profit-sharing deposits on lines different in certain 
respects from that just described, which is of much interest on