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