APPENDIX L. 
Co-partnership Scheme and Rules op the South 
Metropolitan Gas Company. 
Co-partnership with Officers and Workmen. 
The Company’s late Chairman, Sir George Livesey, originated its Co 
partnership Scheme in the year 1889. The Scheme provided for the pay 
ment in cash of a percentage on all salaries and wages, the percentage 
rising and falling (like the Shareholders’ dividends), proportionally with 
the price at which gas was sold. The initial price was taken at 2s. 8d. 
per 1,000 cubic feet, and a Bonus, payable in cash, of one per cent, on 
salaries and wages was given for each penny at which the Company was 
able to sell gas below this figure. 
The Scheme was revised in 1894, the Bonus percentage being then in 
creased to 1J per cent, for each penny per 1,000 cubic feet at which gas was 
sold below 2s. 8d. One-half of the Bonus was payable in cash as before, 
and the other half was invested in the purchase of the Company’s Ordinary 
Stock. 
The Scheme was again revised in 1901, the initial price of gas being 
raised to the same figure as that by which the dividends of the Share 
holders are regulated, viz., 3s. Id. per 1,000 cubic feet, and at the same 
time the Bonus was reduced to f per cent, for each penny per 1,000 cubic 
feet at which gas was sold below the basis price. 
Summary 
showing the Rate and Amount 0} Bonus Darned Yearly 
Year. 
Rate per cent. 
Total. 
1889 
...(Nest-Egg)... 
... £6,863 
1890 
5 
6,037 
1891 
5 
... 10,010 
1892 
3 
6,145 
1893 
4 
7,872 
1894 
6 
... 11,785 
1895 
6 ...X .. 
... 12,892 
1896 
7i 
... 16,906 
1897 
7\ 
... 18,000 
1898 
7J 
... 18,207 
1899 
8i 
... 21,374 
1900 
9 
... 24,592 
1901 
3J 
... 10,401 
1902 
7\ 
... 25,676 
1903 
7\ 
... 28,151 
1904 
8J ... ... 
... 33,696 
1905 
9J 
... 42,648 
1906 
94 
... 43,962 
1907 
9| 
... 45,591 
1908 
71 
... 36,416 
1909 
7\ 
... 37,123 
1910 
8i 
... 41,327 
(Note.—The Bonus Year ends on June 30th.) 
Object and Details of Working.—To induce all the Officers and Em 
ployees to take a real interest in their work by giving them a new motive 
for endeavouring to promote the prosperity of the Company, and (equally 
important) to give them an opportunity to improve their position in life 
by saving their annual Bonus and becoming owners of property in the 
stock of the company. 
By the Sliding Scale system (established by Act of Parliament) the 
profits the Company may divide among its Shareholders are dependent upon 
the price charged for gas—for every reduction of Id. per 1,000 cubic feet 
the Shareholders become entitled, by the Company’s Act of 1900, to 2s. 8d. 
per cent, additional dividend, and, on the other hand, should the price of 
gas be raised, the Shareholders’ dividend is reduced 2.s. 8d. per cent, for 
every penny.