bETAILED ACCOUNT OF VARIOUS SCHEMES. 
53 
workpeople, of a stated proportion of the bonuses payable under 
the scheme. As an instance may be mentioned the scheme of 
John Knight, Limited, of Silvertown, London, E., a firm of soap 
and oil manufacturers, employing in 1911 from 581 to 659 persons. 
A scheme of simple Profit-sharing, with bonus paid in cash 
(though the recipients were allowed to leave all or any part on 
deposit at interest with the company), was introduced in June, 
1904, by Messrs. John Knight & Sons, Limited, the prede 
cessors of the present company. The basis of the division 
of profits was that, after 6 per cent, was earned on the 
Company’s capital, each employee should receive one week’s 
wages for each additional 1 per cent, earned. At the end of 
1906 this Company was voluntarily wound-up, and its business 
transferred to a new Company under the title of “ John Knight, 
Limited,” the previous arrangements as to Profit-sharing with 
employees remaining in force unchanged. 
Early in 1909, however, certain alterations were made in this 
scheme, providing for the payment of half a week’s wages for each 
half per cent, paid on capital over 5 per cent.; it was also 
provided that two-thirds only of the bonus should be paid in cash, 
while the remaining one-third should be invested in the names of 
Trustees, on behalf of the employees, in ordinary shares of the 
Company. 
The average ratio which the share in profits taken by the em 
ployees of this Company has borne to their wages or salaries in 
the form of bonuses distributed (whether in cash or shares) has 
been 5'8 per cent, in the years 1905-1911. 
That the share which the employees have already acquired in 
the capital of the Company is not inconsiderable, will be seen 
from the figures which follow. The total capital of the Company 
at present issued consists of £435,000, in 350,000 ordinary and 
70,000 deferred shares of £1 each, fully paid, and 30,000 ordinary 
shares of £1 each on which 10s. has been paid. Of the ordinary 
(fully paid-up) shares a total amount of £2,967 is owned by 48 
of the Company’s employees, while £424 of deferred shares are 
held by 31 others. These holdings are independent of those under 
the profit-sharing scheme, under which the Trustees hold, on 
behalf of 518 of the Company’s employees, a total of £2,275 in 
ordinary (fully paid-up) shares. Of the ordinary shares (10s. 
paid) 154 shares are owned by. 5 employees. 
The proportion of the total votes that might be given at a general 
meeting of shareholders of the Company by its employees, directly 
or indirectly through the Trustees, is stated to be a little over Ij 
per cent.; managing directors and other superior officials are not 
counted as employees, for the purposes of this calculation. In 
addition one of the employees has a seat on the Board of the 
Company, which consists of sis directors in all. 
The results of the adoption of the arrangements above explained 
are thus described by the company : — 
“ Our impression was, until the labour troubles in the 
summer of 1911, that the Profit-sharing and Co-partnership 
was decidedly satisfactory, but we were greatly disappointed 
when our employees left their work for three weeks at that