52 
II.—PRIVATE FIRMS AND COMPANIES. 
expenses and paying any subscriptions due to co-operative propa 
gandist associations. Any surplus profit is to be applied as 
follows: — 
“ (1.) In paying the employees of the Society a dividend upon 
the wages or salaries received from the Society during 
the year at the same rate as the dividend on wages 
declared by the company for the period in question. 
“ (2.) If any surplus still remains, in forming a Eeserve 
Fund, until such fund shall equal 25 per cent, of the 
nominal value of the society’s investments for the time 
being. Such fund shall be applicable by resolution of 
any general meeting on a recommendation of the com 
mittee 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 he given to every member not less 
than six clear days before such meeting. 
“ (3.) If any surplus still remains, in paying any arrears of 
interest on shares which in any previous year have not 
received 5 per cent., the oldest of such arrears to be 
paid first. 
“ (4.) If any surplus still remains, in paying the committee 
for their services according to any scale from time to 
time approved hy the general meetings; and 
“ (5.) If any surplus still remains, in paying in cash a further 
dividend on shares for the year.” 
Taking together the profit-sharing bonuses distributed first by 
the firm of William Foster & Sons and subsequently by the 
Company (Foster, Sons and Company, Limited), the average ratio 
which the bonuses distributed in the years 1901-1911 have borne 
to the wages and salaries of the participants has been 2'5 per cent. 
Out of the total capital of the Company (4,000 shares of £1 
each) 764 shares are owned hy the Employees’ Society. These 
shares entitle the Society to one-fourth of all the votes that can 
be given at a general meeting of shareholders of that Company; 
and out of the four directors of the Company two are employees, 
appointed by the Employees’ Society. 
In reply to the question addressed to the Company as to the 
results obtained by the arrangements above described, the Company 
states that the adoption of this system has proved “ satisfactory 
on the whole, though for four years, owing to low competitive 
prices, there has been no profit. It has improved matters in 
increased zeal on the part of the more intelligent men. There are 
also more harmonious relations [between employer and employed]. 
Many men, however, are too low in general intelligence 
to grasp the principle underlying either Profit-sharing or 
Co-partnership.” 
Investment in Shares in Names of Trustees. 
Another form of profit-sharing scheme is that under which the 
employees may acquire a share in the capital of a business by the 
investment in shares, to be held by trustees on behalf of the