﻿DETAILED ACCOUNT OF VARIOUS SCHEMES.

43

firm. At the same time the principle of Profit-sharing was intro-
duced by a scheme thus described in the prospectus issued prior
to the formation of the company:—“ In order, however, to asso-
ciate capital and labour still more intimately, the founders of the
company will recommend to the shareholders that whenever the
divisible profits accruing from the business shall (after the usual
reservation for redemption of capital and other legitimate
allowances) exceed 10 per cent, on the capital embarked, all
those employed by the company, whether as managers or agents
at fixed salaries, or as workpeople, shall receive one-half of such
excess profit as a bonus, to be distributed amongst them in pro-
portion to, and as a percentage upon, their respective earnings
during the year in which such profits shall have accrued.” It was
further arranged that the bonus received by those employees who
took shares in the company should be at a higher rate than that
received by those who did not hold shares, the former class
receiving, on the first distribution of bonus, twice as much, on
subsequent distributions half as much bonus again, as the latter.
In 1872 the price of coal and the rate of colliers’ wages rose
rapidly, the advances in wages granted to the miners being an
increase in the aggregate of from 27 J to 30 per cent, upon their
standard rate;* and it was thought proper to increase the
minimum rate of interest on capital from 10 to 15 per cent. The
first division of profits on the new basis was that for the year
ending .1 une 30, 1873; and this basis was maintained during the
rest of the period during which the profit-sharing scheme was in
force. The total amount received by the employees as bonus was
as follows: —

Year ending June 30, 1866

9 9

9 9

9 9

9 9

9 9

9 9
9 9

99

1867

1868
1869

9 9

9 9
9 9

9 9

1871

1872

1873

1874

£

1,800

2,700

3,150

3,462

1,740

1,745

5,250

14,256

6,048

Total

£40,151

Thus, during the nine years covered by the Table, the average
amount received as bonus was about £4,460 a year. What was
the average ratio of bonus to wages during this period as a whole
is not stated by the authorities consulted: the ratio for 1865-66
is, however, given as 10 per cent, in the case of shareholding and
5 per cent in the case of non-shareholding employees, and tire

T. .	T „„ 107a Hip advance in wages had increased to at

It is asserted that by June, lbib, tne auvaiv	s>	p 7 /;	uv

least 50 per cent, on the original standard. {Co-opt* alive 1 loduuion, oy
Benjamin Jones, p. 497)