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.