PROFIT-SHARING- AND CO-PARTNERSHIP BOARD OF TRADE. (LABOUR DEPARTMENT.) REPORT ON PROFIT-SHARING ' AND LABOUR CO-PARTNERSHIP IN THE UNITED KINGDOM, Presented to both Houses of Parliament by Command of His IHajesty. 1)rT1)T T n LONDON: 1 UilLISHLI) BY HIS MAJESTY’S STATIONERY OFFICE. X° either directly or through any Bookseller, from WYMAN and SONS, Limited, Fetter Lane, E.C., and 32, Abingdon Street, S.W.; or H.M. STATIONERY OFFICE (Scottish Branch), _ 23, Forth Street, Edinburgh; or E. PONSONBY, Limited, 116, Grafton Street, Dublin- . °}'T t?°af the Agencies in the British Colonies and Dependencies the United States of America the Continent of Europe and Abroad of 1. WISHER XJNWIN, London, W.C. POINTED BY DARLING and SON, Ltd., Bacon Street E 1912. [Cel. 6496.] Price 8\d. 1. 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PROFIT-SHAKING- AND OO-PARTNERSHIP. BOARD OF TRADE. (LABOUR DEPARTMENT.) (REPORT ON PROFIT-SHARING AND LABOUR CO-PARTNERSHIP IN THE UNITED KINGDOM. Presented to both Houses of Parliament by Command ot His majesty. i LONDON: PUBLISHED BY HIS MAJESTY’S STATIONERY OFFICE. To he purchased, either directly or through any Bookseller, from WYMAN and SONS, Limited, Fetter Lane, E.C., and 32, Abingdon Street, S.W.; or H.M. STATIONERY OFFICE (Scottish Bkanch), 23, Forth Street, Edinburgh; or E. PONSONBY, Limited, 116, Grafton Street, Dublin; or from the Agencies in the British Colonies and Dependencies, the United States of America, the Continent of Europe and Abroad of T. FISHER UNWIN, London, W.C. \ printed by DARLING and SON, Ltd., Bacon Street, E. 1912. [Cd. 6496.] Price 1 To the Secretary of the Board of Trade. Sir, I have the honour to present herewith the accompanying Report on Profit-sharing and Labour Co-partnership in the United Kingdom, which has been prepared in this Department. The work of investigation was at the outset entrusted to Mr. David F. Schloss, who was eminently qualified to undertake this duty. When, however, his work was nearing completion he was unfortunately compelled to relinquish it owing to an illness which, to the great regret of all who worked with him, ended in his death a few weeks ago. The last detailed Report issued by the Department on the sub- ject of Profit-sharing was also compiled by Mr. Schloss, and was published in 1894. The Department has endeavoured, by annual enquiries, to keep up to date the information contained in that Report, and has published the results of these enquiries in the Board of Trade Labour Gazette and in the Abstracts of Labour Statistics; but it is clear that the time has now come for another general survey of the whole subject. In this Report, as in the previous one, Profit-sharing is under- stood to involve an agreement between an employer and his workpeople under which the latter receive, in addition to their wages, a share, fixed beforehand, in the profits of the undertaking. A grant or bonus, therefore, made at the absolute discretion of an employer, and not upon any pre-arranged basis, is not a case of profit-sharing for the present purpose. It may further be remarked that, without a special inquiry, it would be difficult to determine in the less well-organised trades in which many of the profit-sharing schemes have been started, whether the wages paid are the full current district rates. Labour Co-partnership is an extension of Profit-sharing, enabling the worker to accumulate his share of profit in the capital of the business employing him, thus gaining the rights and responsi- bilities of a shareholder. A still further stage is found in some co-partnership schemes which provide for a direct share in the management as well as a share in the profits, one or more seats on the board of directors being expressly reserved for representatives of the workpeople. The present investigation has brought to light a large number of profit-sharing schemes in private firms and companies which were not mentioned in the 1894 Report, and the number of schemes now known to be in operation is 133, the number of workpeople employed by the firms having such schemes being about 106,000. These 133 schemes are the survivors of nearly 300 profit-sharing arrangements of which 163 have been abandoned. (245 8—4.) Wt. 7032—3889. 2500 & 90. 11/12. D & 8, A 2 The following’ tabular statement classifies the schemes accord- ing to the date of adoption, and shows the extent to which schemes started at various periods have survived. Date of Starting. Total N umber of Schemes. Schemes abandoned. Schemes still existing. Schemes as to which no recent particulars are available. Up to 1870 20 17 3 1871-1880 18 12 6 — 1881-1890 84 63 20 i 1891-1900 82 58 23 i 1901-1905 27 7 19 i 1906-1910 55 G 49 — 1911-1912 (seven months). 13 " 13 Total 299 163 133 3 It will be seen that 81 out of the 133 surviving schemes were started since 1900, and G2 since 1905. The number of workers under existing schemes who were entitled to share in profits at the end of 1911 (or in 1912, in the case of schemes started since 1911) was 57‘3 per cent, of the total number of workers in the firms where those schemes were in force. The average “ bonus,” or share in profits, in 1911 repre- sented an addition to the wages of participants of 5'5 per cent, in the case of those firms who furnished particulars to the Department ; this was also the average for the whole period 1901 - 1911. There is a great diversity in the schemes as regards the form of bonus to workers. In about three-fifths of the schemes the bonus is paid in cash; this is especially the case with the older schemes. In a certain number of schemes the whole of the bonus is paid to a provident fund, or it is partly paid in cash and the remainder paid to a provident fund. A more common type of scheme, however, is that in which the whole or part of the bonus is retained for investment in the capital of the undertaking, the other part (where all is not so invested) being paid out in cash or retained on deposit with the employers for provident purposes. This capitalising of the bomis may perhaps be regarded as the characteristic feature of the more recent profit-sharing schemes, and is invariably found in the large and important group of gas- works. Many industrial undertakings are, however, not capable of absorbing annual additions to capital, and success is in some cases only attained by keeping the capital account as low as possible. 3 For one reason or another a large number of failures seem to have occurred in the various attempts which have been made to give the workers a direct share of profits. In more than half the cases of abandoned schemes the cause of abandonment seems, however, to be traceable not to any inherent fault in the scheme as such, but to the falling off of business and to the fact that there were no profits to share. This form of weakness is less likely to affect undertakings which are more or less of the nature of monopolies. Gas companies account for 33 out of the 133 profit-sharing schemes now known to be in existence; but it would probably be unsafe to deduce from their experience any general principles applicable to commercial undertakings of an ordinary character. Doubtless the success or failure of profit-sharing depends largely on the type of scheme introduced, on its applicability to the particular business of the employer, and on the spirit in which it is worked by the two parties to the agreement. To what extent it may be possible for profit-sharing and co-partnership arrangements to become general throughout British industry, and what influence the adoption of such systems would be likely to exert in promoting' industrial peace, are questions which are of very great moment, but which it would certainly be improper to attempt to answer in a Report like the present, intended, not to formulate opinions, but only to supply the facts and materials upon which a judgment may be formed. A section of the Report deals briefly with Profit-sharing and Labour Co-partnership in co-operative societies. This section presents some special features arising out of the fact that here there is no separate employing class, and the capital is provided by the members of these workmen’s societies. In the retail dis- tributive societies, or “ co-operative stores,” 195, or about one in seven of the whole “Store” group, have profit-sharing schemes for the workers employed. The number of profit-sharing workers in these societies was upwards of 17,000 in the year 1910; and the bonus divided amounted to about 4£ per cent, on the wages of the workers participating. In addition, one of the co-opera- tive wholesale societies, and three of the consumers’ productive societies, had profit-sharing schemes, with about 7,600 and 1,300 participating workers, respectively, in the year 1910. Another group of co-operative societies are the Productive Associations of Workers, that is to say, societies formed and managed primarily in the interests of the workers employed, and not of the consumers. In view of this feature of their constitu- tion, it is not surprising to find that 40 of them, or nearly half of the total number, allotted a share in their profits to their workers in 1910, either as bonus on wages or as contributions to provident funds, or both. Moreover, a large proportion (36^ per cent, in 19.10) of the committee-men who manage such societies are themselves workers. In conclusion, I desire, to point out that, although an endeavour has been made to make the particulars contained in this Report with regard to Profit-sharing and Co-partnership in private 4 2 24548 4 businesses in the United Kingdom as complete as possible, it is not claimed that these particulars are exhaustive. It is hoped, therefore, that those who possess information as to either past or present profit-sharing schemes not mentioned in the Report will kindly communicate with the Department. The Depart- ment will also be glad to receive the names and addresses of any employers who may hereafter adopt any system of Profit- sharing. I have, &c., GEORGE STAPYLTON BARNES. Labour Department, Board of Trade. November, 1912. o REPORT ON PROFIT-SHARING AND LABOUR CO-PARTNERSHIP IN THE UNITED KINGDOM. I.—Scope of Inquiry. What is meant by “ Profit-sharing” ... ... ... ... ... 6 What is meant by “ Labour Co-partnership ” ............. 9 H.—Profit-sharing and Co-partnership in Private Firms and Companies. A. —General Summary.................................... 10 B. —Analysis of Schemes now in force .................. 16 C. —Detailed Account of Schemes of Various Types ...... 27 B.—Opinions of Employers as to Results obtained by Profit- sharing and Co-partnership ... ... ... ... ... 67 HI.—Profit-sharing and Co-partnership in Co-operative Societies. A.—Industrial Co-operative Societies—• (1) Associations of Consumers 75 (2) Associations of Workers 80 B.—Agricultural Co-operative Societies 85 IV.—Conversion of Ordinary Businesses into Societies. Co-operative Wm. Thomson & Sons, Ltd., Huddersfield ... 87 Brownfield’s Guild Pottery Society ... 90 Haslemere Builders, Ltd 92 Appendices 95 Index 152 REPORT ON PROFIT-SHARING AND LABOUR CO-PARTNERSHIP IN THE UNITED KINGDOM. I.—SCOPE OF INQUIRY. It will be convenient, at tlie outset, to state in precise terms tlie meaning1 which in this Report is attached to the terms “ Profit- sharing1” and “Co-partnership.” What is meant by “ Profit-sharing.’’ The definition of Profit-sharing1 adopted in this Report is in the main identical with that formulated by the International Co-operative Congress of 1897. At the meeting1 of the International Co-operative Congress held m Paris in 1896, the question of the exact meaning to be attached to the term “ profit-sharing ” was referred to a special Committee, which presented its report on this matter to the Con- gress held in the succeeding year at Delft. The report of this Committee, which was adopted in its entirety by the Delft Con- gress, stated that the Committee took as their basis ‘ ‘ the definition implied in the first resolution passed (without opposition) at the International Congress on Profit-sharing held at Paris in 1889—a meeting attended by a large number of the leading exponents of the method, and the competence of which is beyond question.” WHAT IS MEANT BY PKOFIT-SHAKING. 7 Tlie resolution referred to was in the following terms : — “The International Congress is of opinion that the agree- ment, freely entered into, by which the employee receives a share, fixed in advance, of the profits, is in harmony with equity and with the essential principles underlying all legislation.”* The report of the special Committee went on to elucidate the above definition, as follows: — “ With respect to the ‘ agreement ’ mentioned in the definition, the Committee consider that, while an agreement binding in law is the normal form, they do not exclude cases in which the agreement has only a moral obligation, provided that this agreement is, in fact, honourably carried out. “ By a ‘ share ’ in profits is meant a sum paid to an employee, in addition to his wages, out of the profits, the amount of which is dependent on the amount of these profits. If an employer undertakes, for example, to contribute to a Pension Fund £1 for every £2 contributed by his workmen, this is not a case of Profit-sharing, unless the undertaking is to pay out of profits only, because the sum payable under the agreement does not depend upon the amount of the year’s profits. “ With respect to the ‘ profits ’ a share in which is, under a profit- sharing scheme, allotted to the employees, these profits are, in the opinion of the Committee, to be understood as the actual net balance of gain realised by the financial operations of the undertaking in relation to which the scheme exists. It is, therefore, necessary to point out that the pay- ment of bonus on output, premiums proportionate to savings effected in production, commission on sales, and other systems under which the amount of the bonus depends upon the quality or amount of the output or volume of business,! irrespective of the rate of profit earned, does not constitute Profit-sharing. “ It is to be observed that the money to be received by the employee under Profit-sharing is to be received by him strictly as an employee, i.e., in consideration of the work done by him. The fact that an employee holds shares or any pecuniary interest in an undertaking, and as such holder receives, on account of such shares or interest, a part of its profits, does not constitute a case of Profit-sharing.” With regard to tlie paragraph just cited, it may be useful to point out that while the definition there given excludes from the term “ Profit-sharing ” cases in which the share in profits received by an employee is received by him as the holder of a pecuniary interest in an undertaking, this exclusion presumably covers those cases only in which the whole of the employee’s participa- tion in the profits takes the form of a dividend received by him in respect of his capital invested in the undertaking in the ordinary way. If a working-man has bought in the open market a share in a company by which he is employed, he gets a part of the profits; but he cannot be said to be employed under the method of Profit-sharing, for the dividend which he receives is paid to him as the owner of capital invested in the undertaking, and is not received by him as an employee, in remuneration of * A resolution identical with that set forth in the text so far ns regards the definition of Profit-sharing was passed at the subsequent International Congress on Profit-sharing held at Paris in 1900. t With respect to systems of Bonus on Production (irrespective of the rate of profit earned), information will be found in the Report on “ Gain-sharing," published by the Department in 1895 [C.—7848]. 8 I.—SCOPE OP INQUIRY. his labour. If, however, the company issues shares to its work- men gratuitously or at a price below their market value, or otherwise upon specially favourable terms, thus making (to the extent of these concessions) a gift to those among its employees to whom these shares are issued, then this is a kind of Profit- sharing ; for, in a case like this, the dividends received by the shareholding employees are, in whole or in part, received in respect of this gift and as a reward of their labour supplemental to their wages. So, again, if a firm makes special arrangements by which it receives, by way of loan from its employees, sums entitled to a rate of interest varying with the profits, this may also be considered to be a kind of Profit-sharing. The report of the special Committee referred to above proceeds as follows: — “ Having explained what they understand by a 1 share in profits,’ the Committee direct attention to the requirements contained in the Congress resolution (i.e., the resolution of the 1889 Congress on Profit-sharing) that the share shall be ‘ fixed in advance.’ It is not necessary that the employees shall know all the details of the basis upon which the amount of their share is fixed; thus an employer may agree to give his employees one-half of all his profits in excess of a certain ‘ Reserved Limit,’ that limit being communicated only to an accountant who certifies what is due to the employees; this would he a case of Profit-sharing. On the other hand, if the share given to the employees is indeterminate, i.e., if the employer at the end of the year determines whether he shall give one- tenth or one-fifth, or some other fraction of his profits, to his employees, at his absolute discretion and not upon any pre-arranged basis—this is not Profit-sharing. “ The next question is, supposing the total amount which an employer is to give to his employees as a body to be fixed upon a pre-determined basis, must the share of each individual participant be similarly fixed? Or may the employer distribute this amount at his unfettered discretion among the dif- ferent employees, according to his opinion of their merit or otherwise? In strictness, cases of the latter type might well be held not to fulfil our defini- tion; but the Committee, on careful consideration, are not prepared to declare such cases inadmissible as instances of Profit-sharing, provided that in any event the whole of the employees’ share be distributed among all or some of the employees, except such as shall have forfeited their share by failure to comply with precise reasonable conditions of participation, but so that in.no case shall any part go back to the employer. “ It is important to inquire how far a distribution of profits must extend in order to constitute a case of Profit-sharing. If the distribution be confined to managers, foremen, and leading hands, or to any of such classes of employees, this, in the opinion of the Committee, is not Profit-sharing. A profit-sharing distribution may exclude persons who are not adults, or who have not been in the service of the employers for some reasonable qualifying period, but must, in order to come within the definition of Profit-sharing, include in any case a large proportion, which the Com- mittee consider should not be less than 75 per cent.* of the total number of the adult employees who have been in the service of the employer for at least one year.” For the purposes of the present Report, the term “Profit- sharing ” has accordingly been used as applying to those cases in which an employer agrees with his employees that they shall While the general principle here laid down is accepted, it has not appeared proper to draw in this Report any such hard and fast line as to the irreducible minimum proportion of employees who must be participants. WHAT IS MEANT BY LABOUR CO-PARTNERSHIP. 9 receive, in partial remuneration of tlieir labour, and in addition to their wages, a share, fixed beforehand, in the profits realised by the undertaking to which the profit-sharing scheme relates. What is meant by “ Labour Co-partnership.” The sense in which the term “Labour Oo-partnersliip" is employed may be explained by quoting the words recently used by some distinguished advocates of the system. In a Memoran- dum on “ Co-partnership and Labour Unrest,” issued in October, 1911,* it is stated that: — “ The Co-partnership of Labour with Capital is capable of many modifications according to the needs of varying industries, and in some one of them it is applicable to almost every industry where labour is employed. In its simplest form, taking the case of a man employed by a great Limited Liability Company, it involves: — 1. That the worker should receive, in addition to the standard wages of the trade, some share in the final profit of the business, or the economy of production. 2. That the worker should accumulate his share of profit, or part thereof, in the capital of the business employing him, thus gaining the ordinary rights and responsi- bilities of a shareholder.” Profit-sharing and Labour Co-partnership exist in two fairly distinct forms, these methods being applied, on the one hand, in Co-operative Societies (associations mainly or entirely composed of and managed by workmen, or in the case of Agricultural Societies, by small farmers), and, on the other hand, in ordinary non-co-operative businesses. It will be convenient to treat of these two different kinds of industrial organisations in separate parts of this Report. Profit-sharing in private firms and com- panies is dealt with first, as this is probably the aspect which has received most general attention. c This Memorandum was signed by Lord Courtney of Penwith, the Right Hon. Thomas Burt, M.P., the Right Hon. C. Fenwick, M.P., the late J. M. Ludlow, C.B., Sir W. H. Lever, Bart., Sir B. C. Browne, Dr. Alfred Marshall,-and Messrs. W. IT. Hadow, T. C. Taylor, M.P., George Thomson, Corbet Woodall, Chas. Carpenter, and E. O. Greening ; also, on behalf of the Executive of the Labour Co-partnership Association, by Mr. Amos Mann, its President, Mr. Aneurin Williams, then Hon. Treasurer, and Mr. Henry Vivian, then Hon. Secretary of the Association. 10 II.—PROFIT SHARING AND CO-PARTNERSHIP IN PRIVATE FIRMS AND COMPANIES. A.—GENERAL SUMMARY. In tlie following pages the attempt lias been made to present, in as concise a manner as possible, the results of the inquiries which have been made by the Board of Trade continuously since the publication of the Report on Profit-sharing of 1894 and of the special investigation which lias been carried out for the pur- poses of this Report. This investigation has had the result of bringing to the knowledge of the Labour Department a large number of cases, both of past and present Profit-sharing, not included in the statistics previously published. Thus in the Fifteenth Abstract of Labour Statistics of the United Kingdom [Cd. 6228 of 1912] the total number of schemes started since 1829. when the first experiment in Profit-sharing known to have been made in the United Kingdom was initiated on Lord Walls- eourt’s farm, is given as 232, of which 76 were in operation at June 30, 1911, according to the information then available. In the present Report, however, 299 schemes are mentioned as having been brought into operation between .1829 and the middle of 1912. After deducting three schemes for which no recent particulars could be obtained, and .163 schemes which have ceased to be in operation, the number of firms known to have profit-sharing schemes in operation at the present time is 133. The increase in the number of cases as to which it has been possible to furnish information constitutes a noteworthy advance, which has only been made possible by the general readiness shown by employers to send answers, often inevitably of a character involving a great deal of trouble, to the questions addressed to them by the Department. It will be seen from tire particulars stated (see p. 15 and Appendix A, pp. 95-101) that the 133 firms by whom the profit- sharing system is being applied employ between them over 106,000 persons, and are engaged in a wide range of business undertakings of varying magnitude in all parts of the Kingdom. The ample details which the courtesy of these employers has made it possible to furnish both as to the nature of the systems adopted in different cases and as to the results obtained by their operation, constitute a body of evidence with regard to the character of the different profit-sharing schemes now in force, and to the effects which these schemes are found to produce, which is of great value. The facts set forth prove that the adoption, in one or another of its numerous forms, of the profit- sharing system, is capable of affording to employees no incon- siderable advantages. These advantages include the opportunity of receiving an addition—under favourable circumstances a not inconsiderable addition—to their normal remuneration, the pro- vision of special facilities for thrift, and in many cases a certain GENJiUAL SUMMARY. 11 measure of control over tlie management of the undertakings by which they are employed. At the same time, the opinions of employers quoted or summarised in the following pages show that the methods of Profit-sharing and Co-partnership are in numerous instances considered hy practical men, who base their judgment upon actual experience, to produce excellent results in the direction both of developing a higher degree of efficiency on the part of the employees, and of bringing about more harmonious relations between employers and employed. In comparing the details set forth in the present Iteport with those stated in its predecessor, the fact that conies most pro- minently to light is the marked increase in those forms of Profit- sharing in which the method adopted is either to invest the whole or part of the bonus in shares in the undertaking—shares which generally though not always confer voting rights—or in other ways to secure that the employees shall possess a direct financial stake in the capital of the business. The idea of making arrangements of this nature is not novel, but there has been a considerable development of such systems within the last few years; and it is to this form of Profit-sharing that public attention is at the present moment principally directed. A review of the facts shows that schemes involving investment by employees in the capital of their employers’ businesses have met with a large measure of success; but great caution is necessary in drawing inferences of a general character from these results. In the first place it is necessary to point out that in the great majority of cases the experiments are of such comparatively recent date tliatsit may be somewhat premature to found upon the results which appear to have been attained in these instances any very positive conclusions with regard to the general applica- bility of the Co-partnership method. Secondly, the fact that a large number of these experiments have taken place in a single industry, and that this industry (gas making) is carried on under very special circumstances and enjoys exceptional advantages, must impose a certain degree of caution in drawing deductions as to the applicability of such systems to businesses of all kinds. Certainly, the Gras Com- panies afford a field exceptionally favourable for the applica- tion of co-partnership methods. The absence of bonus, caused by insufficiency of profits, which in ordinary business not seldom occurs, is practically unknown in Gas Companies. Their shares and stock are often classed as “ gilt-edged securities,” and the chance that employee-investors will lose their savings by the liquidation of the company is so small as to be almost negligible. 1 hirdly, there is the point that the issue of shares to employees means an addition to capital account, and this is not always possible or desirable. Writing to the editor of Labour Co- partnership, tlie organ of the Labour Co-partnership Association, on November 1st, 190G, Mr. Alexander Horn (one of the Managing Directors of Messrs. Clarke, Nickolls & Coombs, Limited, who have in the last 22 years paid to their workpeople 12 II.—PRIVATE FIRMS AND COMPANIES. in bonuses a total of more than £172,000) remarks as follows :■— “ 1 wonder how Sir George (Sir George Livesey, Chairman of the “ South Metropolitan Gas Company) would deal with such a “business as ours, where, during the 16 years our profit-sharing “ scheme has been in force, we have paid in bonuses more than “ twice the amount of our ordinary capital, and we couldn’t, if “ we wanted to, find employment for such an accumulation of “ capital as these bonuses represent. With a Gas Company, “ which is always increasing its mains and adding to capital “ account, it is different. We want to keep our capital account “ as low as possible.” In an article on Co-partnership the Engineer, of May 31, .1912, describes a profit-sharing scheme under which a Company at the end of each year pays 5 per cent, dividend on its shares “ and the remaining profits are apportioned between capital and “ labour in the ratio that the capital bears to the wages bill. “ The labour portion is distributed amongst all the workers gro “rata with their wages, but not in the form of money. The “ distribution is made in ordinary shares of the Company, which, “ of course, take their dividends in the ordinary way in succeed- tT ing years.” This journal observes that under this scheme “ in the course of time the business must become seriously over- “ capitalised. Already the majority of the shares are owned by “ the workpeople, and these all, with the exception of such “ transfers as are made when, for example, a co-partner dies “ or leaves the firm, represent new created stock. Clearly there “ must be a limit to that kind of thing. A natural limit would “ no doubt be reached when the capital became so great that “ the dividends dwindled to the 5 per cent, due to shareholders. “ There would then be no new issue of stock, and although every “ shareholder would be concerned in maintaining the 5 per cent. “ dividend, there would clearly not be the stimulus that there is “ at present.” Complete lists of the profit-sharing schemes notified to the Department up to August 1, 1912, are contained in Appen- dices A and B (pp. 95-114), particulars relating, to schemes which have been abandoned being given separately from those relating to schemes in which Profit-sharing is at present in force. In every case the year of starting Profit-sharing is given, together with the nature of the business carried on by the employer, the number of the employees, and the form in which the bonus is paid. In the case of abandoned schemes, the year and the cause of abandon- ment are also stated; while for schemes at present in force particulars are added as to the number of employees entitled to participate at the end of 1911 (or in 1912, in the case of schemes started since 1911). In Appendices C and D 1pp. 115-125) Tables are given for existing and for abandoned schemes relating to the investments of employees in their employers’ businesses. The Summary Table on the next page has been compiled from the information given in the Appendices referred to above : •— GENERAL SUMMARY, 13 Table*' showing Progress of Profit-sharing in the United Kingdom. Year. Number of Schemes started by Firms in each Year. Numb That have since ceased to exist. er of such Scl As to which particulars could not be obtained. iemes In operation at 1st August, 1912. 1829 i i 1865 6 5 — 1 1866 6 5 — 1 1867 4 4 — — 1868 1 1 — — 1870 2 1 — 1 1871 2 2 — — 1872 5 4 — 1 1873 2 1 — 1 1874 1 1 — 1876 4 2 — 2 1878 2 — — 2 1880 2 2 — 1881 3 2 — 1 1882 2 1 1 1883 3 2 . 1 1884 3 1 — 2 1885 2 2 1886 5 4 1 1887 7 6 1 1888 6 6 1889 20 12 8 1890 33 27 i 5 1891 17 14 — 3 1892 17 13 i 3 1893 6 5 — 1 1894 6 3 — 3 1895 10 7 — 3 1896 5 4 — 1 1897 3 3 — - 1898 5 3 — 2 1899 4 1 — 3 1900 9 5 — 4 1901 4 1 3 1902 5 5 1903 6 2 4 1904 5 2 3 1905 7 2 i 4 1906 4 4 1907 8 2 p, 1908 17 17 1909 16 2 14 1910 10 2 Q 1911 7 7 1912 (seven months) 6 — — 6 299 163 3 133 * This Table includes all the information received by the Department up to 1st August, 1912, * 14 II.— PRIVATE FIRMS AND COMPANIES. Duration of Existing Profit-sharing Schemes. Tlie details given show that, out of the 133 cases of present Profit-sharing referred to in the Table, four date back 40 years and upwards (profit-sharing arrangements having been adopted in 1865, 1866, 1870 and 1872 respectively); seven date hack between 30 and 39 years (the dates of adoption being 1873, 1876, 1876, .1878, 1878, 1881 and 1882 respectively); 24 others have had an existence of 20 to 29 years (19 of these belonging to the period 1889 to 1892 inclusive); and 25 others have had an existence of 10 to 19 years. The whole of the remaining 73 cases (55 per cent, of the whole number) were started at various dates within the last 10 years, 21 of these belonging to the period 1903-1907 inclusive, 46 to the period 1908-1911 inclusive, and the other six to the first seven months of the present year (1912). Duration of Past Experiments. When we come to analyse the details as to abandoned profit- sharing schemes contained in Appendix B (pp. 103-112), we find that the duration of these 163 experiments is unknown in eleven cases (including that made by Lord Wallscourt, which is stated to have lasted for “at least” 17 years), and in the remaining 152 cases is believed to have been as follows : —41 years in one case; 31 years in one case; 27 years in one case; 25 years in one case; 24 years in one case; 23 years in one case; 22 years in one case; 21 years in two cases; 20 years in two cases; 19 years in three cases; 18 years in four cases; 17 years in two cases; 16 years in one case; 15 years in four cases; 14 years in two cases; 13 years in five cases; .12 years in five cases; 11 years in six cases; 10 years in seven cases; 9 years in seven cases; 8 years in ten cases; 7 years in five cases; 6 years in nine cases; 5 years in five cases; 4 years in fourteen cases; 3 years in seventeen cases; 2 years in sixteen cases; .1 year in thirteen cases; while in six cases the scheme was adopted and abandoned in the same year. Thus the average duration of Profit-sharing in these 152 cases was about 8 years, while more than one-third of them came to an end before the fourth, and more than one-half before tlie seventh year of the experiment. Causes of Cessation of Profit-sharing. An examination of the causes which have operated to bring the several experiments to a close shows that in 8 cases nothing is known on this point, while the causes given in the remaining 155 cases may be roughly classified as follows: —Apathy of employees and dissatisfaction of employers with results, 59 cases; diminution of profits, and losses or want of success, 29 cases; enterprise abandoned, and liquidation or dissolution, 25 cases; changes in or transfer of business, 22 cases; substitution of increased wages or shorter hours, or other benefits, 8 cases; dis- satisfaction of employees, 4 cases; job finished or death of employer, GENERAL SUMMARY 15 4 cases; special circumstances, 4 cases. It will be seen that, while in 92 out of these 155 cases the discontinuance of Profit-sharing appears to have been clue to various circumstances none of which can well be attributed to the operation of this system, the number of cases in which Profit-sharing was abandoned on the ground that the system had failed in producing the results hoped for from it is 03, or about two-fifths of the whole. A summary of the causes of cessation of profit-sharing schemes by the trades in which the schemes were adopted is given on p. 114 in Appendix 13. Trades in which Profit-sharing Schemes have been adopted. With regard to the comparatively large number of schemes which have been started since 1907, it may be pointed out that up to and including that year only four gas .companies had adopted profit-sharing methods, and that a considerable propor- tion (nearly one-half) of the number of schemes started since 1907 is due to the extension of profit-sharing methods among gas companies which began in 1908. An account of the system of profit-sharing practised by these companies is given on pp. 54-64. The following Table* gives particulars of the trades in which profit-sharing schemes have been adopted: - Nature of Business. Total Number Number of Schemes existing at 1st August, 1912. of Schemes. Schemes abandoned. Number of Businesses. Number of Employees. Building trades 12 9 3 151 Mining and quarrying 6 6 — — Metal, engineering and ship- building trades Metal 9 8 1 163 Engineering and ship- 21 17 4 17,336 building. Textile trades ... 14 7 7 4,951 Clothing trades 19 12f 5f 1,637 Transport ... 3 2 1 173 Agriculture 18 12 0 737 Printing, paper and allied trades :—- Paper making ... ... 1 4 794 Printing, bookbinding, &c. 36 25 11 3,389 Woodworking and furnishing 10 7 3 169 trades. Chemical, glass, pottery, &c.... 22 8 14 15,649 Food and tobacco 31 18 13 6,760+ 28,246 Gas works 34 1 33 Electricity supply 2 — 2 414 Other businesses 57 30| 26f 25,620 299 163 f 133f 106,1891 '• inis xaoie mwuues all the information received by the Department no to 1st August, 1912. f No recent particulars are available as regards three of the schemes started (two in the Clothing trades and one in “Other businesses”) to show whether they are still in existence or have been abandoned, t Excluding one firm for which figures are not available, 16 IT.— PRIVATE FIRMS AND COMPANIES. Ratio of Bonus to Wages. Detailed Tables with regard to the proportionate addition made to wages by the profit-sharing bonus in the case of those firms which have supplied the information are given in Appendix E (pp. 126 and 127), from which the following summary has been prepared. It will be noted that the average ratio of bonus to wages for the period 1901-1911 is 5'5 per cent, and that the ratios varied during this period from 7'1 per cent, in 1906 to 4'5 per cent, in 1908, since which year they have shown a pro- gressive increase up to 5'5 per cent, in 1911. Year. Number of Distribu- tions. Number of Employees. Number of Participants. Average Bonus, taking into account the number of Participants in each case. 1901 54 19,435 11,816 5-0 1902 53 20,321 12,343 5-9 1903 50 20,282 13,067 6-8 1904 52 38,009 16,341 6-5 1905 52 42,283 16,942 6-5 1906 58 41,294 17,922 7-1 1907 55 42,082 18,921 6-0 1908 62 56,738 34,059 4-5 1909 71 61,762 38,881 4-8 1910 86 77,374 50,461 5-0 1911 100 82,659 51,443 5-5 Average Bonus for 1901-11. 5-5 per cent, on Wages. B.—ANALYSIS OF SCHEMES NOW IN FORCE. An analysis has been made of the schemes of Profit-sharing at present in force with a view to classifying and comparing their principal features. The results of this analysis are stated below, the references to the various schemes being given by means of numbers, the kev to which is contained in Appendix A (pp. 95- 101). Legal Contract or Gratuity. Most of the schemes make no express reference to the question whether the arrangement is a voluntary one or a strict legal contract. It is found that in a few instances(a) only is the share in profits allotted to employees given to them as a matter of strict legal right. In some instances(b) it is declared to be given gratuitously or as a voluntary payment, one firm (No. 11) de- scribing it as “ an act of grace.” A few companies(°) expressly state that their profit-sharing schemes confer no legal rights on employees. (“) Nos. 3, 7, 49. 103. (") Nos. 11,14, 25, 27, 29, 31,40, 41, 125, 130 (») Nos. 20, 29, 31, 42, 44, 92. ANALYSIS OF SCHEMES NOW IN FORCE. 17 Determination of Bonus Fund. In tlie majority of cases the total amount allotted for distribu- tion among the employees as bonus is a fixed proportion of the profits; hut in a small number of cases(a) participation stops at a certain point, beyond which the claims of the employees cease. In some cases(b) the amount available for the payment of bonus is not a proportion of the profits, but a sum contingent upon a certain rate of profit being earned by the business: this sum is in some cases(°) a fixed percentage on wages (varying in one instance (No. 18) according to the amount of profits, and in another (No. 116) according to the length of service of the parti- cipants), and in others(d) an amount ascending with the rate of profit earned. In one instance (No. 122) a sum of money sufficient to buy a fixed number of shares in the undertaking is apportioned to selected employees. With profit-sharing gas companies, the bonus varies with the price of gas according to a fixed scale, rising as the price falls, and falling as the price rises. These companies are by law allowed to increase their dividends beyond a certain point only in proportion to a reduction in the price charged by them for gas. It follows that a rise of bonus is always accompanied by an increase of dividend, and may therefore be regarded as an indica- tion of increased profits, though it is not based (as in other systems) on a direct distribution of profits. The Divisible Profits. The profits taken into account for the purpose of ascertaining the amount available for distribution as bonus are almost in- variably the profits earned by the undertaking^) to which the scheme applies in the year, or in a certain number of cases(f) the half-year, preceding the distribution, which takes place usually once a year, but in some cases(s) half-yearly, or even quarterly^) or monthly.^) The profits in the case of No. 16, however, are taken from the average results for several years; while firm No. 35 reserves to itself the right to carry forward an amount of undivided bonus with a view “ to average good and bad years.” The divisible profits for the purposes of the profit-sharing scheme are usually declared to be the clear or net profits—that is to say, the gross profits after deduction of rent, taxes, rates, wages, salaries, and other working expenses. In joint stock com- (*) Nos. 2, 8, 22, 44, 51, 78, 116. (b) Nos. 18, 28, 44, 46, 59, 75, 106, 116, 122, and one anonymous case. (°) Nos. 18, 28, 46, 116, and one anonymous case. (d) Nos. 44, 75, 106 ; in the case of No. 106 the amount credited to employees as bonus must not exceed the amount represented by a 10 per cent, dividend to shareholders. (°) the business as a whole ; in one case (No. 35), however, the profits taken into account are those of a particular department, while in another (No. 60)—confined to working foremen—they are estimated for each job which the participant has had charge of. (*) Nos. 10, 20, 41, 50, 102, 109, and one anonymous case. (B) Nos. 11, 13, 17, 26, 32, 59, 92, in addition to cases noted under (*) (h) Nos. 23, 45, 92. Q For No. 92 distribution may bo monthly, quarterly, or half-yearly, as may be found most convenient for different classes of recipients. 24548 B 18 II.—PRIVATE FIRMS AND COMPANIES. panies the salaries include those of managing' and other directors, and an analogous practice obtains with a few(a) private firms, though, as a rule, in such firms the remuneration of management is included in the proportion of the profits not allotted to em- ployees, but retained by the firm. As to the minimum remunera- tion of capital, interest at fixed rates is included in a large number of instances, whether in the case of joint stock companies or of private firms, among the deductions to be made before “ net profits ” are arrived at; the fixed rate of interest being generally 5,(b) sometimes 6,(c) per cent., and only exceptionally a lower(a) or a higher(e) percentage. In the case of No. 60 the remunera- tion of capital is secured by a certain standard of profit' being fixed for each job; this scheme is confined to working foremen (leading hands), who are paid a percentage on the total account for each job, and a special provision is made that any deficit on the estimated profits is deducted from the amount due to the employee. In some cases special mention is made of sums to be set aside for depreciation^) and for reserve funds.(») Under scheme No. 7 a sum is set aside before profits are divided to be devoted to a Provident Uund for widows and orphans of em- ployees. The “ reserved limit ”—i.e., the point at which the participa- tion of the employees begins—is in a few cases(h) known to be based not on the actual profits earned in the years immediately preceding the introduction of the profit-sharing scheme, but on an amount below those profits. The principle upon which the reserved limit is calculated is generally communicated to the employees.0 In a few cases(J) the results of the calculation determining the total amount avail- able for participation are certified by professional auditors, whose figures can be seen by the employees. In two(k) cases the employees are allowed to inspect the books of the firm. Share in Profits allotted to Employees. The proportion of the profits allotted for division between the employees varies considerably in different schemes. Of the cases in which no mention is made of any part of the total net profits being retained for the employers as a reserved limit, there are a few(’) in which .10 per cent, of the profits is allotted as the share (0 Nos. 19, 27, 35, 78, 115. (b) Nos. 5, 6, 9, 16, 28, 41, 43, 49, 62, 65, 78, 87, 103, 115, 117, and one anony- mous case ; in the case of No. 49 the rate is cumulative. 0 Nos. 14, 25, 26, 51, 75, 76, 92, 120, 122 ; in the case of No. 76 the rate is cumulative. (d) No. 88, 4 per cent. (c) No. 131, about 9T per cent. ; Nos. 61 and 125, 10 per cent. ; No. 81, 50 per cent. (f) Nos. 5, 25, 26, 37, 43, 78, 125. (») Nos. 5, 6, 7, 9, 25, 49, 76, 125. (”) Nos. 19, 25, 27, 66. Q In the case, however, of Nos. 23 and 64 the reserved limit is disclosed only to a professional auditor, who in the former case issues a certificate if no bonus can be paid, and who in the latter case certifies the amount due toemployees. (i) Nos. 14, 20, 30, 39, 47, 57 ; see also reference to Nos. 23 and 64 in preceding note. (k) Nos. 54 and 78 (through Finance Committee—see pp. 46-49), 0 Nos. 17, 126, and one anonymous case. ANALYSIS OP SCHEMES NOW IN FORCE. 19 of the employees; others(a) in which 5 per cent, is allotted, one(b) of 3 per cent., another(b) of 1| per cent., one(°) in which the share of the employees is 2\ per cent, of the divisible profits up to a certain sum, and 5 per cent, of the profits in excess of such sum; the whole of the divisible profits are allotted to employees in one case,(d) while in another(e) the whole of the profits from one department are so allotted, with one-half of the remaining' profits. It is, however, necessary to state that many of the returns contain no information as to the percentage of profits allotted to em- ployees in cases where there is not known to be any “ reserved limit.” In a few cases(f) capital and wages share concurrently, the bonus being at the same rate on wages as the rate of interest received by capital. Where the participation of employees in profits is dependent upon the profits reaching a certain fixed amount, the proportion of the surplus profits above this reserved limit which, so far as is known, is appropriated to the payment of bonus varies from 5 per cent, up to 50 per cent., about one-third (») of the schemes which fix the bonus in this way allotting the latter percentage. (For the other percentages, see note(b).) In one case (No. 78) the whole of the profits above the reserved limit are allotted to employees up to 5 per cent, on their wages. In a number of cases)1) the surplus is shared between capital and wages qyro rata, i.e., the bonus on wages is at the same rate as the dividend on capital; this plan being varied in the case of No. 65 by giving half a week’s wages for every half per cent, over 5 per cent, paid as dividend. In three cases (Nos. 63, 64, and 68) in which the employees’ right to share in profits is conditional on the profits reaching a certain standard, the bonus allotted is based on the total net profits (not the surplus profits over the reserved limit), the employees getting per cent, of such profits in the case of No. 63, 10 to 15 per cent, (rising with the profits) in the case of No. 640, and in the case of No. 68 a dividend on their wages equal to one-quarter of the rate of dividend paid to ordinary shareholders. With regard to the division of the total bonus fund among the different employees, by far the most common method adopted is to divide this fund between the participants in proportion to the amount which each has earned in the period to which the distri- bution relates; but in making the calculation overtime is excluded in a few schemes(k), overtime and piecework in a consider- (“) Nos. 50, 70 (may vary to 6 per cent.) 71, and one anonymous case. (b) Anonymous. (°) No. 130. (a) No. 37. (c) No. 3. (f) Nos. 36, 48, 54. (s) Nos. 19, 25, 35, 49, 66, 112, 131 ; in the case of No. 61 the directors and employees share between them half the surplus profits. (h) The percentage is 33^ for No. 6 ; 25 for Nos. 5, 16, 27, 120 ; 20 for Nos 14, 76 ; 16§ for No. 81 ; and 5 for Nos. 26, 40, and an anonymous case ; in the case of No. 125 the amount given to employees is equivalent to 15 per cent, of the dividends paid to shareholders in excess of 10 per cent. 0 Nos. 43, 51, 73, 87, 88, 92, 115, 117. 0 There is a further provision that “ the amount to be distributed must not bring the profit remaining below the figure it would have stood at, if the lower percentage had been calculated on the highest amount to which the lower percentage applied.” (k) Nos. 5, 23, 26, 53, 86, 94, 24548 B 2 20 II.—PRIVATE FIRMS AND COMPANIES. able number of schemes(a) (principally of gas companies), and piece- work alone in one scheme (No. 124); in the case of many gas companies(b) no deduction is made for time lost through sickness up to two months; while a few companies(°) provide that time so lost will be allowed for at the discretion of the Directors. In a few cases(d) the bonus is given in the form of so many weeks’ wages, and does not depend upon actual earnings, which may be affected by lost time and other causes. In several cases(°) it depends upon the length of service of employees as well as upon their earnings. In the case of No. 37 it depends entirely upon the length of service. There are several instances(f) in which the amount of the bonus depends wholly or partly on the position of employees. A num- ber of companies(g) reserve to themselves the right to fix each man’s share according to their opinion of his worth and behaviour, irrespective of his position. Other methods of distribution of the bonus fund are noted below(h). Profit-sharing Deposits. In a limited number of cases the form of Profit-sharing adopted, either exclusively or in conjunction with some more common type, consists in paying to employees who leave money in the hands (») Nos. 24, 38, 55, 82, 83, 89, 90, 91, 93, 95, 96, 98, 99, 100, 105, 107, 110, 111, 119, 121, 127, 128, 129, 132 ; in the case of No. 54 overtime and piecework are excluded, but harvest payment is included. (h) Nos. 24, 38, 53, 55, 82, 83, 84, 86, 89, 91 (6 weeks, not 2 months), 93, 94, 95, 96, 98, 99, 100, 105, 107, 109, 110, 111, 119, 121, 123, 127, 128, 129. (') Nos. 14, 90, 132. (a) Nos. 29, 46, 75 ; in the case of No. 29 the bonus also depends on the position of employees, heads of departments getting double-shares and persons under 21 half-shares. (°) Nos. 12, 21, 34, 42, 43, 46 ; No. 21 provides that those employed 7 years receive twice the amount received by those employed under 7 years ; with No. 42, those employed 6 months and under 12 get only half a share ; in the case of No. 43 a double bonus is given to employees with 5 years’ service and owning shares in employer’s business equivalent to half a year’s wages. (f) No. 16 (gee p. 28) ; Nos. 14 (where employees are divided into four classes, according to their work, each class receiving a different number of shares), 58,125 ; in the case of Nos. 17, 29, 35, 124, heads of departments get larger shares than ordinary employees, while the shares in bonus apportioned by No. 32, though based on wages vary according to whether participants are (1) men, (2) apprentices, or (3) boys. Under scheme No. 44 the participants are divided into classes depending on (1) position, (2) success, and (3) length of service. (B) Nos. 1,13,27,30 (clerks only), 40, 58 (depends also on position), 61 ; com- pare No. 57, where shares are allotted to employees on recommendation of manager, and No. 103 (see pp. 29-36). In the case of No. 122 the bonus is allotted in the form of shares to approved employees, each employee getting one share. The share in profits allotted to employees under schemes Nos. 4, 70, 71 depends upon the employer’s judgment as well as upon wages. (h) In the case of Nos. 20 and 25 the proportion of the bonus allotted to each employee is the same as his wages bear to the total wages bill, the bonus accumulating to employees not entitled to participate being in the case of No. 26 devoted to a common Provident Fund. The bonus is equally divided among employees by Nos. 3, 30 (workmen only), 59, 67, 112. In the case of No. 124 each employee’s share is determined by a scale, arranged according to wage-limits. Under No. 31, which applies to sale agents, the bonus depends partly upon success and partly upon the percentage of sales to expenses. In No. 81 the bonus depends partly upon success and partly upon wages. ANALYSIS OP SCHEMES NOW IN FORCE. 21 of their employers in the first place a fixed rate of interest, generally varying between 3 and 5 per cent.,(a) and then a further return on these deposits varying with the rate of profits of the business. The rate of this extra return is in a few cases(b) to be such as, together with the fixed interest, will bring the total rate of return up to the rate of dividend paid by the company, with a maximum limit of 10 per cent, in one case (No. 22); in two cases (Nos. 8 and 51) the rate of the extra return is to be one-half of the difference between the fixed minimum rate of interest and the rate of dividend paid by the com- pany, with a maximum limit of 7 per cent, for No. 51 and of 10 per cent for No. 8; in another case (No. 102) it is to be half the rate of profits in excess of 8 per cent., the interest in this case being paid half-yearly. Under scheme No. 79 deposits are received by a private employer who, in addition to a fixed mini- mum rate of interest, gives “ a bonus which is fixed by the Auditor in proportion to the profits.” Where a limit is fixed to the amount of money which may be invested, this varies from .£15 to £400.(°) Notice is generally required before any sums may be withdrawn by investors, varying from two days to two months.(d) In addition to the foregoing instances, there should be mentioned under this heading the special cases of two gas companies (Nos. 84 and 109) who receive fixed weekly contribu- tions from employees and who, in addition to a fixed rate of interest (4 and 5 per cent, respectively), give a bonus on the contributions. varying with the price of gas, the whole of the amount credited to employees being invested in shares in the undertaking. Proportion op Bonus reserved as Provident Fund. In three cases(e) the whole of the bonus due to the employees is credited to a provident fund. Where such a fund exists it is more usual, however, for only part of the bonus to be devoted to this purpose, the other part being either paid to employees m cash or credited to their account for the purchase of shares in the undertaking by which they are employed. The proportion (“) The rate is 3 per cent, for No. 22, 4 per cent, for Nos. 8, 51, 85, 102, U Per cent, for No. 2 and 5 per cent, for No. 97 ; in the case of No. 10 there is no guaranteed minimum rate of interest. C) to (no fixed interest, return on investments being the same as rate of dividend, if any, upon capital), 22, 85, 97. In the case of No. 2 the return varies with the profits between certain limits according to a fixed scale (see pp. 39 and 40). 0) The limit is £15 for No. 10, £50 (£100 for bailiff) for No. 97, £100 for No. 51, £400 for employees paid quarterly and £200 for other employees in the case of No. 8. No limit is fixed by Nos. 2, 22, 85. (’() In the case of No. 51 any sum up to £2 may be withdrawn in one week on notice of two days being given ; otherwise one month’s notice is required. With No. 102 amounts up to £1 may be withdrawn on seven days’ notice fourteen days’ notice being required for higher amounts. Seven to fourteen days’ notice is required by No. 8 (see pp. 41 and 42), and seven days to two months by No. 2 (see pp. 39 and 40). One week’s notice is required by Nos 85, 97 and one month’s notice by No. 22. In the case of No. 10 no notice is required for the withdrawal of small sums, while otherwise a week’s notice is required. (') Nos. 9, 27, 37. 22 II.—PRIVATE FIRMS AND COMPANIES. thus credited for provident purposes is usually one-half.(a) In a few cases(b) the provident fund is supplemented, or even entirely supported, by sums representing the bonus due to employees who have not fulfilled certain conditions to entitle them to participate individually. Purposes to which Provident Funds are applied. Provident schemes may generally be divided into two classes, viz. : (1) those in which a common fund is established for the benefit of employees, and (2) those in which separate amounts are credited to individual employees. In the case of (1) the purposes include provision for the necessities arising from sick- ness, old age, disablement, and death, and also, in the case of female employees, for a marriage dowry. Instances of schemes making provision for sick allowances are Nos. 5, 9, 25, and 43. Provision for the payment of superannuation grants is made' by Nos. 9 and 25. Provision is made against disablement by No. 9 and for the payment of a sum on the death of the participant by Nos. 5, 9, and 25. Provision for marriage is made in the case of female employees by Nos. 5 and 35. In cases where the deferred bonus is the individual property of employees, definite provision is made in some instances for the payment of the amount accumu- lated on the attainment of a certain age(°) or after a certain period of service^); while it is provided in other instances(0) that the deferred bonus may only be withdrawn in special approved cir- cumstances. In the case of No. 30 the money set aside is for a sick club, the balance at the end of each year being distributed among the employees. Some gas companies, while not retaining the “withdrawable” half of the bonus (see p. 63) for definite provident purposes, try to ensure that it shall be so retained by warning employees against regularly withdrawing this half; some companies(f) say that if employees do not save their bonuses as intended they will be removed from the list of participants’, while othersfo) say that breach of this rule may lead to their profit- sharing schemes being discontinued. (a) One-half in the case of Nos. 5, 11, 20, 24, 39, 41, 55, 82, 93, 96, 98, 99, 105, 107, 108, 111, 123, 132. In the case of No. 23, the proportion is two-thirds, while it is one-third in the case of No. 29, one quarter in the case of No. 30, and one-tenth in the case of No. 49. In the oase of No. 91 the whole of the bonus is to be regarded as held for provident purposes after a £10 share in the under- taking has been purchased by bonuses. (b) See rules applying to Nos. 25 (pp. 36-38), 49 (pp. 49-52), and 78 (pp. 46-49). In the case of No. 43 the provident fund is accumulated from the bonuses due to employees with less than 12 months’ service, or who leave before the expiration of the year for which the bonus accrued ; while with No. 87 the bonus due to employees who leave during the year is credited to a Sick Fund. The provident fund is supplemented by the bonuses due to casual hands in the case of No. 5. (°) This varies from 55 in the case of No. 37, 60 for men and 55 for women in the case of No. 30, 60 in the case of Nos. 29 and 41, to 65 in the case of No. 23, and 70 in the case of No. 20. No age-limit is laid down by No. 11, money being paid when employee is considered pensionable. (a) Defined as 25 years by Nos. 20, 23, 39, and 30 years by No. 29. (") Nos. 5, 24, 27, 55, 91,' 108, 132. (f) Nos. 82, 93, 105, 107. ANALYSIS OF SCHEMES NOW IN FORCE. 23 Rules as to Forfeiture of Provident Fund. Where a fund is collective (i.e., for the benefit of all em- ployees alike and not credited to them individually) employees leaving1 a company’s employment for reasons other than those of sickness, old age, &c., would generally forfeit their rights to participation. Where, however, sums have been credited to them individually, employees leaving in such circumstances may usually recover these sums, either at once or after a period.(a) An exception is provided by the rules of No. 29, by which the fund standing to an employee’s credit is forfeited if he is discharged for reasons other than those of ill-health, or leaves without the firm’s assent; while if he leaves with the firm’s assent, one-half of the fund may be claimed. A number of schemes provide for the forfeiture of bonus in cases of fraud(b) or serious misconduct. (°) In the case of No. 20 it is provided that any loss or damage caused to the company by an employee may be made good from his deferred bonus. Provident Funds, how Invested. The amounts standing to the credit of the various provident funds are usually left in the hands of the firms; where they are regarded as deposits accumulating at interest (as is invariably the case where amounts are credited to individual employees) the rate of interest specified varies from 3 per cent, to 5 per cent., 4 per cent, being the most usual rate. In the case of No. 30 the money is deposited in the Post Office Savings Bank; in two cases(d) the firm reserves to itself the right to deposit the money in a savings bank, at the current rate of interest therein, instead of allowing its own rate of interest; while in the case of No. 29 the firm retains the right to invest the fund as may be expedient. In the case of No. 49 the money is held in trust by the Employees’ Society (.see pp. 49-52). It is utilised by No. 37 for the purchase of pensions in the Royal National Pension Fund for Nurses. Shares issued to Employees as Gift or on Special Terms. Where employees hold shares which have been bought in the open market, they are not considered to be employed under the method of Profit-sharing. But where shares, or their equivalent for purposes of dividend, are issued to employees either (1) without exacting any payment or (2) on specially favourable terms as to purchase price or method of paying up instalments, &c., this is a form of Profit-sharing. An example of (1) is provided by Nos. 52(«), 103 (see pp. 29-36), and 104.(f) In none of these cases (a) Within a fortnight of the next half-yearly stocktaking, providing the time waited is at least three months, is specified by No. 20. In the case of No. 23 employees must wait for the period during which they would have had to be employed to entitle them to the payment of their deferred bonus. With No. 41 payment is deferred for 12 months if an employee leaves of his own desire. '(’>) Nos. 11, 20. 24, 55, 82, 93, 96, 98, 99, 105,107, 108, 111, 123. («) Nos. 5, 41, 91. (d) Nos. 20, 23. (°) Special employees’ shares. (f) A fixed number of Ordinary Shares have been set aside by the Company for the benefit of selected employees, who receive nominations entitling them to the dividend upon shares, the shares themselves being retained by the Company. 24 II.—PRIVATE FIRMS AND COMPANIES. are the beneficiaries entitled to vote at a general meeting of shareholders. Further examples of (1) are provided hy Nos. 56, 69, 72, 77, and 133, in all of which cases Ordinary Shares or shares benefiting as Ordinary Shares have been allotted to employees gratis-, the employees of firm No. 69 were also allowed to pur- chase a certain number of shares on specially favourable terms. Shares below market value are issued by No. .15 (see pp. 64-66), the employees being allowed to purchase them by instalments. Easy terms for the purchase of shares are also offered by Nos. 7, 57, 74,(a) and 114.(b) With regard to the scheme of No. 7, more than half the total shares of the company are held hy employees or their wives and children. The shares are not transferable but may be bequeathed by the holder to his wife or children or to a fellow- dredgerman, or, in case of an employee dying intestate, may be claimed by his son, if a dredgerman; otherwise they revert at death to the Company, who will pay the market value of the shares to the employee’s legal representative. In the case of No. 57 half of the dividend paid upon shares is to be devoted to paying up shares not fully paid up, and “as regards any unpaid capital, interest at the rate of 5 per cent, per annum shall be charged . from the date as at which the shares rank for dividend until paid.” The shares, both under this scheme and under that of No. 114, carry no votes. No shares acquired under schemes Nos. 57, 74, and 114 may he transferred without the consent of the companies concerned, who reserve to themselves the right to find a purchaser at the price paid by the employee; while special pro- vision is made in all three cases hy which shares shall be at the unreserved disposal of the company, on payment of the price at which they were purchased, in the event of the death of a partici- pating employee. Conditions attached to Profit-sharing. In some cases(°) all the employees without distinction are allowed to share in the bonus fund; but in many instances par- ticipation is confined to persons who possess certain qualifications, the most usual of which is a certain length of service with the firm, varying from three months up to fifteen years, the most frequent period named being one year.(d) In a few cases(e) persons below a certain age are excluded. In other cases(f) par- ticipation in profits is confined to employees selected by the (") Ordinary £1 Shares issued, to be paid up by instalments of not less than Id. per week, 4 per cent, interest being charged on unpaid capital. (b) Cumulative Preference Shares issued, to be paid up by instalments, entitling holders to extra dividends when Reserve Fund exceeds certain limits. C) Nos. 1, 5, 9, 17, 19, 34, 45, 46, 48, 58, 67, 68, 70, 72, 76, 78, 87, 112, 126. ((1) Cases of 3 months are Nos. 102,120 ; 6 months, Nos. 11, 20, 26, 27, 28, 32, 41, 66, 73 ; 9 months, No. 12 ; 1 year, Nos. 21, 23, 25, 36, 39, 42 (half-benefit for 6 months’ service), 43, 62, 75, 88, 92, 106, 113, 115, 117, 125, 130 ; 18 months, Nos. 14, 30 ; 2 years, Nos. 16, 31 ; 3 years, Nos. 29, 122 ; 5 years, Nos. 51, 103, 124, 131 ; 7 years, Nos. 3, 37 ; and 15 years, No. 69. (e) The minimum age-limit is 21 years for Nos. 14 and 82 ; 16 years for No. 10, and 25 years for No. 103. In the case of No. 78 the bonus accruing to persons under 16 is subject to special treatment (see pp. 46—49). (f) Nos. 13, 40, 44, 52, 56, 57, 61, 65, 104, 133. ANALYSIS OP SCHEMES NOW IN PORCE. 25 management. In a few instances certain classes of employees, such as persons receiving commission,(a) persons earning more or less than fixed amounts,(b) pieceworkers,!0) or casual labourers!'1) are excluded from participation; other special cases are noted under (e). In certain instances conditions are attached to participation, by far the most frequent of which is the signing of a contract of service for a stated period, generally twelve months, as is the case with nearly all profit-sharing gas companies,(f) this con- tract providing that wages shall not be reduced during the term specified. In a few cases(^) profit-sharing employees are required to be members of a fund for provident purposes. A provision is made in the rules of No. 29 that employees under 21 must have been total abstainers and non-smokers for the whole of the pre- ceding year. Taking together the total number of profit-sharing schemes now in operation (but excluding three cases for which the particulars cannot be given) the figures given in the Table in Appendix A show that the following were the percentages which the number of employees in each case who were entitled to share in profits at the end of 1911 (or in 1912, in the case of schemes started since 1911) formed of the total number of employees in 1911: less than 20 per cent, in 16 cases, with an aggregate of 35,809 employees; in 3 cases, with 2,353 employees, 20 but under 30 per cent.; in 7 cases, with 892 employees, 30 but less than 40 per cent.; in 5 cases, with 1,117 employees, 40 but under 50 per cent.; in 8 cases, with 2,369 employees, 50 but less than 60 per cent.; in 4 cases, with 714 employees, 60 but less than 70 per cent.; in 23 cases, with 22,866 employees, 70 but under 80 per cent.; in 19 cases, with 26,017 employees, 80 but less than 90 per cent.; in 19 cases, with 10,822 employees, 90 but less than 100 per cent.; while in 26 cases, with 3,082 employees, (“) Nos. 25, 35, 124 ; No. 18 gives less to employees on commission than to others. (b) Only employees with an income of less than £250 aro allowed to participate by No. 106, while No. 93 admits no employees to participation whose salaries exceed £200 ; participants must be earning at least 30s. a week, if men, and 14s. a week, if women, in the case of No. 124. (°) Nos 16, 35, 40. (d) No. 5 (in this case the bonus accruing to casual hands is credited to a general provident fund), 50, 54, 64, 84, 123, 128, 129. (e) Only warehouse stalls and cutters participate in the case of No. 66, factory workers and porters being excluded, but allowed a week’s holiday ; under scheme No. 71, only males and foremen participate, while scheme No. 60 only provides for leading hands ; travellers are excluded in scheme No. 116, and in the case of No. 81 the scheme is confined to agents and superintendents. (f) With all, except Nos. 84, 109, 123, 132 ; in the case of No. 86 such an agreement is provided for in the rules of the profit-sharing scheme but is not enforced in practice ; the schemes of Nos. 84 and 109 are based upon con- tributions. The maximum period named in agreement is only 4 months in the case of No. 127 and 6 mouths in the case of No. 107. In one case (in which the period is 12 months) it is stated by the company that there are “ various dates of commencing, viz., 1st January, 1st April, 1st July, 1st October, the object being not to have the whole determining at the same time.” An agreement is required to be signed under scheme No. 51 providing for 28 days’ notice to be given before the termination of the service of the employee; scheme No. 29 has a similar agreement for an unspecified period, which in practice is usually one week. (") Nos. 23, 53, 83, 110. 26 II.—PRIVATE FIRMS AND COMPANIES. all participated. The average percentage of all employees who were entitled to participate in profits in these 130 cases was 57'3. Forms of Bonus Payment.(a) In about three-fifths of all the schemes under examination the bonus is paid in cash. In about one-half of the remaining schemes part of the bonus is paid in cash, and the remainder is either credited to a thrift fund available to provide provident benefits for the employee or invested in shares in the employer’s business. The other commonest type of scheme is that in which the whole of the bonus is retained by the employer, part for investment in shares and part on deposit, to be withdrawn only for purposes of a provident character. In a very small number of schemes the whole of the bonus is devoted to provident purposes. With regard to those schemes in which part of the bonus is retained for investment in shares in the employer’s business and the other part is either paid out in cash or retained on deposit with the employer for provident purposes, in several cases the provisions as to withdrawal are subject to the retention by the company of the whole of the bonus until a certain amount of stock has been bought or for a specified period. In a few schemes the whole of the bonus is always retained by the company for investment in its shares or stock, one company(b) making an additional provision that money may be temporarily withdrawn in specially approved circumstances up to one-half of the amount of bonus which may be awaiting investment; while another com- pany^) provides that in special circumstances (sickness or unem- ployment) the trustees will lend an employee an amount equal to two-thirds the market value of his shares together with any uninvested bonus standing to his credit. With regard to the shares obtained by the investment of bonus, restrictions are imposed by nearly all companies in order that such shares shall not be transferred without their consent being pre- viously obtained. In a few cases(a) the shares are held on behalf of the employees by trustees, while in others(e) it is provided that the shares shall only be held by employees. In the case of most gas companies (which comprise the majority of cases in this group) the shares are held in the individual names of employees, and special provision is made by which employees selling shares (“) Particulars are given of the form of bonus payment adopted by each firm in Appendix A. (pp. 95-101) ; see also Summary on p. 102. Similar par- ticulars are given for abandoned schemes in Appendix B. (pp. 102-113). (b) No. 119. (°) No. 106. (<l) In the case of No. 128 the shares are held by three Trustees, consisting of a director, a co-partner, and the secretary of the company. The shares are held in trust by the directors in the case of No. 65, and by two Trustees, one of whom is appointed by the company and one by the employees, in the case of No. 106. The votes on account of shares held under the last-named scheme are vested in a Committee of five, including two profit-sharing employees, and are to be exercised era bloc. In the case of No. 84 the shares are held jointly in the name of the employee and the company’s engineer. In the case of Nos. 91 and 121, shares are issued in the name of employees, but the certificates for them are retained by Trustees. CO No, 43 ; and see the special case of No. 49, where shares are held by an employees’ society (pp. 49-52). Reference should also be made to the rules of No. 78 (see pp. 46-49). The shares of No. 43 carry no vote and may only be sold when an employee holds an amount equivalent to a year’s wages. ANALYSIS OF SCHEMES NOW IN FORCE. DETAILED 27 ACCOUNT OF VARIOUS SCHEMES. without the consent of the company will lose their right to share in profits(a); in some cases(b) it is expressly provided that such loss of right is only incurred by employees who sell shares to persons outside the company’s employment. Under scheme No. 125 half of the bonus is paid in the form of bonus certificates, which benefit as ordinary shares, and are not transferable in ordinary circumstances, but may be transferred on the death of an employee to his representative, or will be redeemed by the com- pany. No restriction is generally placed on the devolution of shares on the death of the holder, and in the case of many gas companies special facilities are offered for the transfer of shares to the holder’s nominated representative. Share in Control of Business. As a rule—though there are some important exceptions, as noted above—the shares owned by the employees give them the ' ordinary voting powers; and as time goes on and their holdings increase, their voting strength should in due course be augmented. At present, the proportion of the total number of votes which belongs to the employees reaches or exceeds 5 per cent, in only a few cases(°) and is in nearly all cases a quite insignificant percentage. The employees are represented on the Board of Directors in 9 cases.(a) There exist, however, under a very large number of profit-sharing schemes,(e) joint committees composed of employers and employed whose functions, although of a consulta- tive nature only, cannot be considered unimportant.(f) 0.—DETAILED ACCOUNT OF SCHEMES OF VARIOUS TYPES. xllthough it is not practicable to describe in detail all the profit- sharing schemes which have been adopted in the United Kingdom, the different kinds of Profit-sharing will be illustrated by a short account of certain schemes of various types. Cash Bonus.* Taking first the form of Profit-sharing in which the whole of the bonus is paid in cash, and in which, neither by the invest- ment of their bonuses nor of their other savings, have the em- ployees acquired an interest in the capital of the undertaking by (a) The principal exceptions are Nos. 38 and 86, which make no provision against selling Stock. (b) Nos. 55, 82, 83, 89, 94, 95, 96, 100, 107, 119, 121, 128. (°) The principal cases are No. 7, 53 per cent, (including the wives and children of employees) ; No. 49, 25 per cent. ; No. 61, 20’6 per cent. ; No. 81, 19*5 per cent. ; No. 69, 12'5 per cent. ; No. 77, 10'6 per cent. ; No. 56, 8’5 per cent. ; No. 74, 6'6 per cent. ; No. 6, 6 per cent. ; No. 68, 5'7 per cent. ; and No. 101, 5 per cent. (D Nos. 7, 24, 38, 48, 49, 61, 72, 76. 133. (n) All gas companies and Nos. 5, 20, 23, 29, 39, 41, 78, 103, 106, 124. (f) Some description of the functions of a joint committee will be found on pp. 59 and 60. * A general form for a simple profit-sharing scheme with cash bonus will be found in Appendix F., pp. 128-130. 28 IX.—PRIVATE FIRMS AND COMPANIES. which they are employed, an example may be found in the scheme which has been in force since 1887 on the Home Farm of Lady Wantage (about 5,000 acres lying between Wantage and Hendred, Berks). The plan adopted is to pay rent, interest at 5 per cent, on capital, rates and taxes, purchase of stock and other working expenses, and wages, and then to allot a portion of the surplus balance as the share of the employees, the remaining profits going to their employer. For the purposes of the profit-sharing scheme the profits are calculated on the working, not of a single year, but of a series of years. Thus, in those years in which profits are made, the share of the employees is partly paid over to them at once, partly credited to a reserve fund which is available for the payment of a bonus, if, say once in every four years, a bad year occurs in which no profits are earned. The net balance of profit earned in the series of years being thus ascertained, the losses made in the bad years being deducted from the profits made in. the good years, one quarter of such net balance goes to the employees. The accounts of the farm are audited by a firm of accountants, and the certified balance-sheet can be seen by any employee. “ The bonus is distributed in shares of so many shillings each, the farm manager getting at the rate of ten shares to one, the ordinary labourers one share, and boys half a share each.” All male employees who have worked on the farm for at least two years receive bonus; but the female labourers are not given any share in profits, the reason given for their exclusion from participation being that most of the work which they do is piece-work. The number of persons (of either sex) employed on the farm varies from 188 to 238. The number of employees who, at December 31, 1911, were entitled to participate in profits, was 147. The ratio which the bonus has borne to the wages of participants, taking an average of the bonuses distributed in the years 1888-1911 inclusive, has been about 4‘8 per cent. In regard to the effects produced by the adoption of the profit-sharing scheme, the agent for the estate observes as follows:—“ I think the giving of the bonus has been the principal reason why we have never had the least trouble with the labourers on this estate, although there are many other boons for which they ought to be, and are, grateful.” In November, 1884, Messrs. Blundell, Spence & Co., Limited, colour, paint, and varnish manufacturers, oil boilers and refiners, and anti-fouling composition makers, of Hull and London, adopted a system of Profit-sharing. From the clear profit of the year, i-e., “ the net amount available for dividend, reserve, or carrying forward, after deduction of all outgoings whatever” there is deducted a sum sufficient to pay 5 per cent, on the preferred, and 6 per cent, on the ordinary shares; of the remainder a definite fraction is devoted to the payment of “ gratuities ” to the employees. This fraction was, under the original scheme, one- tenth; but under successive revisions of the scheme the propor- tion was raised to one-eighth, and in May, 1912, to one-fifth. Of this bonus or “ gratuity ” fund the office staff takes one-sixth DETAILED ACCOUNT OF VARIOUS SCHEMES. 29 (originally one-fifth), and those employed in the works, ware- houses, &c., five-sixths (originally four-fifths). The participants are divided into classes according to the. importance of the work done hy each,* there being four classes, receiving respectively .1 share each, l\, and 3 (originally 1, 2, 3, and 4). All adult employees in the service of the company during the last eighteen months are entitled to participate in the Bonus Bund (distributed in cash), unless they have been absent, during the preceding twelve months, more than 60 early morning quarters or 240 hours in the aggregate,f except with the sanction in writing of a Managing Director: in case of absence due. to sickness or other unavoidable cause, however, the Managing Directors may grant an approximately proportionate amount of any gratuity to which the employee would otherwise have been entitled. + The number of persons employed by this firm in 1911 varied between 803 and 840, of whom some 600 were, on December 31, 1911, entitled to participate in profits. The ratio which the bonus has borne to the wages of participants, taking an average of the bonuses distributed in the years 1886-1911 inclusive, has been 3‘07 per cent. Although the scheme makes no provision for the investment of the bonus, a certain number of employees (64) have acquired ordinary shares of the company to the total (nominal) amount of £6,130, and these employee-shareholders possess be- tween them T3 per cent, of the total votes that might be given at a shareholders’ meeting. With respect to the results obtained hy the adoption of their profit-sharing scheme, the company states that: “ We think that the scheme induces the men to take an increased interest; in their work, and that it does tend to promote a good feeling between employers and employed.” A system of participation in profits, which embraces not alone the ordinary employees of the business, but also the directors and other principal officials, and which presents several other features not be found in other profit-sharing schemes, is in force with the firm of Lever Brothers, Limited, soap manufacturers, of Port Sunlight, and with certain associated companies, under a scheme introduced in May, 1909, and altered and extended in June, 1910. § The whole of the ordinary shares in Lever Brothers, Limited, are held by Sir W. H. Lever and his son, and the scheme was introduced on the initiative of Sir W. H. Lever. The scheme is based upon the creation of a “ Co-partnership trust,” and upon the issue of certificates of two kinds, called respectively “ partner- ship ” and “ preferential ” certificates. By the Articles of Association of the company provision is made whereby any moneys proposed to be distributed by way of divi- dend after the payment of preference and ordinary dividends * * * § * Thus a mechanic takes “ 1J gratuities,” while a labourer takes “ 1 gratuity.” f Originally the disqualifying period of absence was 50 working days'in 2 years ; then (after Nov., 1890) 24 working days in 12 months ; altered as in the text in 1898. + This proviso was added in 1904. § The scheme is described as at present in operation (as modified in 1910). 30 II.—PRIVATE FIRMS AND COMPANIES. (including a dividend of 15 per cent, per annum upon its pre- ferred ordinary shares and of 5 per cent, per annum upon its ordinary shares) are to he applied in payment of a dividend at the rate of 5 per cent, per annum upon the “ preferential certi- ficates ” of the trust: the surplus profits are then divided between the holders of ordinary shares of the company and the trustees of the “Co-partnership Trust” in proportion to (a) the total amount paid-up or credited as paid-up for the time being on the issued ordinary shares of the company and (b) the total nominal amount of the “ partnership certificates ” then issued and out- standing, and entitled, for the time being, to participate in the distribution of dividends under the scheme. The certificates (partnership and preferential) are to be issued from time to time as required by the scheme; but in no case are partnership certificates for a nominal amount exceeding ,£500,000 to be at any one time issued and outstanding except with the consent in writing of “ the holder of the majority shares of the company ” i.e., the registered holder or holders of all the issued ordinary shares of the company, or such holder of ordinary shares as shall be nominated in writing by the holder or holders of at least three-fourths of the then issued ordinary shares, to exercise the powers conferred upon “ the holder of the majority shares of the company.” Such holder shall at any time or times be at liberty to require that any further issue of partnership certificates shall be stopped either permanently or for such period or periods as he shall think fit. The certificates (whether partnership or preferential) are for £1, or a multiple of £1. A partnership certificate may from time to time be exchanged for a preferential certificate in accordance with the terms specified below. Out of the moneys received by the trustees from the company, the trustees pay to the holders of the preferential certificates the fixed preferential dividend at the rate of 5 per cent, per annum mentioned above, or at such less rate as may be payable under the scheme; the balance of the moneys in their hands is distributed by the trustees among the holders of the partnership certificates entitled to participate by way of dividend. Preferential certificates of such amount as the holder of the majority shares of the company may request are from time to time to be issued by the trustees to, or for the benefit of, any institution, the object of which shall be the advantage, betterment, or enjoyment of persons in the employ of the company or of companies associated therewith , including Christ Church at Port Sunlight, the day or Sunday schools, clubs, and parks. Pro- vision is also made under this part of the scheme for the granting of scholarships to the children of employees. The trustees are to be the directors, for the time being, of the company (other than Sir W. H. Lever) or such of them as are willing to act. The Trust is to continue during the life of the survivor of the issue living at the date of the Trust Deed (May 1, 1909) of Tier late Majesty, Queen Victoria, and 21 years after the death of such survivor, and during such further period (if any) DETAILED ACCOUNT OF VARIOUS SCHEMES. 31 as shall be lawful. It is expressly declared that the Trust Deed shall not be construed as creating a partnership in law between the company and the trustees, or between the company and any person interested under the scheme. The scheme applies to directors or deputy-directors of the com- pany devoting their whole time to the interests of the company, and to “ employees,” that is to say (a) persons in the employ, whether in the United Kingdom, or abroad, of the Company, or (b) in the employ in the United Kingdom of any of the associated companies*; (c) the secretary of the chairman of the company; (d) persons formerly in the employ of the company and now in the employ, away from Port Sunlight, of any of the associated companies; (e) directors of the company not devoting their whole time to the interests of the company; (/) any former director of the company; (g) directors of any of the associated companies nominated by the holder of the majority shares of the company. It also applies to persons in the employ elsewhere than in the United Kingdom of any of the associated companies, provided that at the time of any issue of partnership certificates to such persons the associated company in whose employ they are shall have paid, in addition to interest on debentures and other prior charges and dividends on preference shares, a dividend of not less than 5 per cent, per annum upon the nominal amount of its ordinary issued capital for the financial year last preceding such issue, t The conditions upon which partnership and preferential cer- tificates may be issued are stated in the scheme in the following terms: — “ 2. Every direcfbr of any length of service and/or age, and every employee who shall be not less than 25 years of age, be of good character, and shall have a clear record of at least five years’ faithful and loyal service with the Company, or any of the Associated Companies, or the Chairman of the Company’s Directors, and who shall agree to he hound by the provisions of the Trust Deed and the Scheme, and also undertakes not to waste time, labour, materials, or money in the discharge of his duties to the Company, but to loyally and faithfully further the interests of the Company, its Associated Companies, and his co-partners, to the best of his skill and ability, may, subject to such provisions, have issued to him from time to time Partnership Certificates upon the terms hereinafter mentioned: Provided that the Holder of the Majority Shares of the Company shall if he so think fit be entitled to cause certificates to he issued to any director or employee whether or not he shall comply with all or any of the provisions of this Clause, and the Trustees shall issue certificates accordingly, when requested in writing by the Holder of the Majority Shares of the Company so to do. “ 3. Any Partnership Certificates which may be issued under the Scheme shall, subject to the limits stated below, be issued on or as soon as con- veniently may be after the 1st January in each year. And in any subsequent years further Partnership Certificates may, subject as afore- said, be issued to any director or employee. e “1 The Associated Companies ’ means Benjamin Brooke and Company Limited, Hodgson and Simpson, Limited, and Vinolia Company, Limited, and any other company constituted or carrying on business in the United Kingdom or' any British Colony or Dependency, or any Foreign Country, of which the majority of the shares for the time being shall be held by or on behalf of the Company, or any other company referred to in this sub-clause.” f This extension of the Scheme to employees outside the United Kingdom belonging to Associated Companies was introduced in 1910, 32 II.—PRIVATE FIRMS AND COMPANIES. “ 4. The issue to a director shall be made in accordance with the direc- tions of the Holder of the Majority Shares of the Company, who shall determine whether the director is qualified to receive a Partnership Certificate, and if so the nominal amount, within the limits mentioned below, of the certificate which is to be issued to him. A director shall he entitled to receive and hold for his own benefit, subject to the provisions of the Scheme, certificates, whether Partnership or Preferential, notwith- standing that he may be a Trustee of the Trust Deed. “5. The employees admitted to receive Partnership Certificates and the nominal amount of their certificates shall, in the first instance, be deter- mined by the Trustees who, in the case of any employee, may, if they think fit and shall if requested in writing within such time as the Trustees shall in the circumstances of the case think reasonable by the employee so to do, refer his case to the Committee for consideration and for a Report whether the employee is qualified, and if so, what is the nominal amount of the certificate which, in the Committee’s opinion, he ought to receive? After receipt of the Report, the Trustees shall consider it and all the circumstances of the case, and shall finally decide whether the employee is entitled to the issue to him of a Partnership Certificate, and if so, for what nominal amount, which, however, shall not exceed the limits stated below. Notice of the decision shall be given to the employee, who shall be entitled at any time within one calendar month, or in the case of an employee in the service of the Company or an Associated Company, and for the time being resident out of the United Kingdom, within three calendar months or such further time as the Trustees may think fit, of the giving of such notice to appeal from the decision of the Trustees to the Holder of the Majority Shares of the Company. Such Holder may, if he thinks fit, hear the Trustees and the employee, and call for any evidence he deems desirable on such appeal, and his decision shall be final and binding.................... “6. The Trustees shall from time to time issue to every person qualified to receive the same, Partnership Certificates in accordance with the fore- going provisions. “ 7. The nominal amount of the Partnership Certificates issued and to be issued under the Scheme shall be limited, as follows: —• “ (a.) The Director Class.—A director may receive Partnership Certifi- cates of a nominal amount approved by the Holder of the Majority Shares of the Company, but not exceeding the limits from time to time fixed by such Holder. “ (6.) The Management Class.—A director of the Company not devoting his whole time to the interests of the Company, a former director of the Company, or a director of any of the Associated Companies, if nominated as hereinbefore mentioned; or an employee who is a Secretary, Assistant Secretary, Manager, Assistant Manager, or Foreman, may receive Part- nership Certificates for a nominal amount determined by the scale and within the limits of the following Table: — Maximum Nominal Amount Table I. of Partnership Certificates. £ 3,000 Where annual salary is £750 or upwards Where annual salary is less than £750 and not less than £500 .............................. 2,000 Where annual salary is less than £500 and not less than £300 1,200 Where annual salary is less than £300 and not less than £200 800 Where annual salary is less than £200 and not less than £100 400 Where annual salary is less than £100 200 DETAILED ACCOUNT OF VARIOUS SCHEMES. 33 “ The nominal amount of the Partnership Certificates to be distributed amongst all the persons specified in this sub-clause (herein called 1 the Management Class ’) shall not exceed in the whole one-fourth of the total nominal amount of the Partnership Certificates for the time being authorised to be issued. “ (c.) The Salesman Glass.—An employee who is a Manager of a Selling Branch, a Head Traveller, Head Salesman, Assistant Traveller, Assistant Salesman, Advertising Manager, Head Inspector, or Superintendent of the ‘ door to door ’ selling, demonstrating, or other like advertising force, may receive Partnership Certificates for a nominal amount determined by the scale and within the limits of the following Table: — Maximum Nominal Amount Table II. of Partnership Certificates. £ Where annual salary is £750 or upwards ... ... 3,000 Where annual salary is less than £750 and not less than £500 2,000 Where annual salary is less than £500 and not less than £300 1,200 Where annual salary is less than £300 and not less than £200 ... ... ... ... ... 800 Where annual salary is less than £200 and not less than £100 400 Where annual salary is less than £100 ... ... 200 “ The nominal amount of the Partnership Certificates to be distributed amongst all the employees specified in this sub-clause (herein called ‘ the Salesman Class’) shall not exceed in the whole one-fourth of the total nominal amount of the Partnership Certificates for the time being authorised to be issued. “ (d.) The Staff Glass.—Any employee, being a member of the Staff and not included under any of the foregoing Classes, may receive Partnership Certificates for a nominal amount determined by the Scale and subject to the limits of the following Table: — Table III. Where annual salary is £200 or upwards Where annual salary is less than £200 and not less than £100 Where annual salary is less than £100 Maximum. Nominal Amount of Partnership Certificates. £ 800 400 . 200 “ The nominal amount of the Partnership Certificates to be distributed amongst all the employees specified in this sub-clause (herein called the Staff Class ’) shall not exceed in the whole one-fourth of the total nominal amount of the Partnership Certificates for the time being authorised to be issued. Provided that the Holder of the Majority Shares of the Company shall, if he so think fit, be entitled to cause Partnership Certificates to be issued to any of the persons specified in this Clause in excess of the ■maximum nominal amounts above set forth. “ No person shall be qualified for the time being to receive Partnership Certificates under more than one Class. “8. A director or employee may only receive Partnership Certificates, if and so far as the Trustees shall be in a position to issue same to him, having regard to the limits of the total nominal amount of Partnership Certificates wdiich may be issued under the Scheme, and to the limits imposed by the last preceding clause as to the maximum nominal amount 24548 0 34 II.—PRIVATE FIRMS AND COMPANIES. of the Partnership Certificates to be allotted to the different classes. The total nominal amount of the Partnership Certificates allocated to each class by the last preceding clause may from time to time be varied by the Trustees, with the consent of the Holder of the Majority Shares of the Company (provided that by so doing the nominal amount of any Partner- ship Certificates for the time being issued and outstanding be not diminished). “9. In determining the nominal amount of a Partnership Certificate which may be issued to an employee, the Trustees shall have a discretion to allot any nominal amount from £1 to the maximum nominal amount specified in the Tables, provided it be a multiple of £1, and the Trustees shall be guided in their determination strictly in accordance with the merits of the applicants, and without consideration of precedent or the nominal amount of any Partnership Certificate that shall have been allotted to any other applicant. “ 10. The Partnership Certificates held by any director or employee shall be cancelled : —- “ (i.) In the case of a director, if he shall in the opinion of the Holder of the Majority Shares of the Company, or in the case of an employee, if he shall in the opinion of the Trustees be guilty of neglect of duty, dishonesty, intemperance, immorality, wilful misconduct, flagrant inefficiency, disloyalty to his employers, or breach of his undertaking not to waste time, labour, materials, or money in the discharge of his duties, but to loyally and faithfully further the interests of the Company and its Asso- ciated Companies to the best of his skill and ability, and whether or not he shall resign or be discharged from his employ- ment in consequence thereof. Any employee whom the Trustees shall consider guilty shall be entitled to have his case considered by the Committee before being finally dealt with by the Trustees, and any employee may appeal from the decision of the Trustees to the Holder of the Majority Shares of the Company, whose decision shall be final and binding. The procedure specified in Clause 5 hereof, as to the reference to the Committee, the decision of the Trustees and the appeal therefrom, shall, so far as applicable, be followed in any proceeding under this sub- clause. “ (ii.) If the employment of a director or employee shall cease, if a man before he attains the age of 65 years, or if a woman before she attains the age of 60 years, by voluntary retirement or resignation and not owing to permanent incapacity to work caused by ill-health. “ (iii.) If the director or employee, being a man, shall attain the age of 65 years, or being a woman shall attain the age of 60 years, and shall retire, whether upon his or her own initiative or upon the request of the Company or an Associated Company. “ (iv.) If the director or employee shall die or shall from any other cause, save those hereinbefore specified in this clause, cease to be a director or employee. “ (v.) If during the life of the director or employee any act or event shall happen whereby the Partnership Certificates held by him under the Scheme, if belonging absolutely to him, would become vested in or charged in favour of some other person or corporation. “11. In the event of the employment of a director or employee ceasing for any cause other than those specified in sub-clauses (i.) and (ii.) of the last preceding clause, or in the event of such director or employee dying leaving a widow, then such former director, employee, or widow (as the case may be) shall be entitled to receive from the Trustees a Pre- ferential Certificate in exchange for the Partnership Certificates held by such former director or employee at the time of the termination of his employment. The nominal amount of such Preferential Certificate shall be either 10 times the average dividends paid in respect of the former director or employee’s Partnership Certificates during the three preceding DETAILED ACCOUNT OF VARIOUS SCHEMES. 35 years, or the same nominal amount as that of the Partnership Certificate so exchanged, whichever shall be the lesser. In the event of the, death of any Holder of a Preferential Certificate leaving a widow, such widow shall be entitled to have issued to her, and to retain during widowhood, a fresh Preferential Certificate of the same nominal amount, and subject to the same conditions as that held by such deceased Holder. Nothing in this clause shall be deemed to entitle the legal personal representative of any deceased director or employee to receive a Preferential Certificate. Provided that the Holder of the Majority Shares of the Company shall, if he so think fit, be entitled to cause to be issued to any former director, employee, or widow referred to in this clause, a Preferential Certificate for an amount in excess of the nominal amount above set forth, or in the case of such former director or employee holding no Partnership Certi- ficates, then to such former director or employee, or the widow of such, a Preferential Certificate for such an amount as the Holder of the Majority Shares of the Company shall think fit. “ 12. A Preferential Certificate shall be cancelled: — “ (i.) If the Holder thereof shall die; “ (ii.) If the Holder thereof, being a former director or employee shall enter into any employment or business without the previous consent in writing of the Trustees; “ (iii.) If the Holder thereof, being the widow of a director or employee, shall marry again; “ (iv.) If any act or event shall happen whereby the Preferential Certificate, if belonging absolutely to the person to whom it is issued, would become vested in or charged in favour of some other person or a corporation.” In connection with the working of the Scheme there is esta- blished a Committee consisting of three persons nominated by the persons constituting the Management Class, three nominated by the persons constituting the Salesman Class, three nominated by the persons constituting the Staff Class, and three nominated by the Holders (if any) of the Preferential Certificates for the time being outstanding. (No person not ordinarily resident in the United Kingdom is eligible for election as a Member of the Committee.) No resolution of the Committee is to be deemed to have been carried unless supported not only by a majority of the members of the Committee, voting individually upon the resolution, but also by a majority of the different sections of the Committee represented and voting at the meeting; and for this purpose each section of three members is to be deemed to be entitled to one vote, ■which shall be given in accordance with the direction of a majority of the members of that section present at the meeting, and unless there is such a majority the vote of that section is not to he counted. The Committee elects a Chairman, and such Chairman, if the voting of the members of the Committee be equal, or if the voting of the sections of the Committee be equal, is to have a casting vote. In July, 1909, 1,041 employees of Lever Brothers, Limited, including directors, managers, salesmen, travellers, advertising managers, clerks, workmen, labourers and others, who had quali- fied under the terms of this scheme, were handed Certificates (Partnership and Preferential) of the nominal capital value of <£113,650. It should be added that the scheme was made retrospective, so that any employee who was 25 years of age in 1901 and had five years’ service or more at that date was eligible to receive C 2 24548 36 II.—PRIVATE FIRMS AND COMPANIES. certificates for eight years; and of the total number of certificates issued, 303 were retrospective for eight years or over, 42 for seven years, 81 for six, 123 for five, 159 for four, 131 for three, 99 for two, and 103 for one year.* In 1910 the total amount of Certificates (of both kinds) was raised to £214,982, in 1911 to £298,731. It may he mentioned that the dividends on the Partnership Certificates are credited to the persons entitled to receive them in a Savings Bank account, opened for the purpose in the Com- pany’s books in 1909. The total number of persons employed by Lever Brothers, Limited, and by its Associated Companies in 1911 in the United Kingdom was over 9,000. There were 2,500 employed outside the United Kingdom. Of these, at the end of 1911, .1,749 (1,448 in the United Kingdom, 301 outside it) were the holders of Partnership or Preferential Certificates under the Scheme above described. In reply to the Department’s question as to the results obtained by these arrangements, the Company writes : — “ It is too early yet, in the opinion of the Chairman of the Company, to speak authoritatively with reference to the Co- partnership Scheme. But his experience is that with the majority the Scheme does increase their sense of responsi- bility and loyalty to the firm, perseverance and assiduity in discharge of duties. He would not abandon it, nor has he any desire to go back to the days before the Scheme. If it were not in operation, he would desire to provide such a Scheme, and he does not think his experience of it has dis- closed any inherent defects or any possibility as far as this business is concerned of very materially improving upon it.” Bonus, part Cash, part Provident Fund.* An example of the type of Profit-sharing in which part of the fund available for the payment of bonus is paid in cash and the remainder is credited to a Provident Fund for the benefit of the employees may be found in the scheme of a large London firm of confectionery manufacturers, Messrs. Clarke, Kiel,oils, and Coombs, Limited, which came into force on January 1, 1890. The arrangement in this case is that “ after paying all salaries, liabilities on agreements, making allowances for bad debts, and the usual provision for depreciation and other reserves, paying interest on debentures, dividend on preference shares, and a dividend at the rate of 6 per cent.t on the ordinary capital of * The Eules of a profit-sharing scheme with bonus partly paid in cash partly credited to Provident Fund will be found in Appendix G-., pp. 130-133. f The company states that it had paid 10 per cent, on its ordinary shares for two years prior to the introduction of the profit-sharing scheme, “ but it was thought wiser to start dividing profits with the workpeople after only 6 per cent, had been paid to the ordinary shareholders. The directors suggested this as having every confidence in the scheme themselves, they thought, if the workpeople saw something tangible within their grasp, they would be more likely to give it a fair trial.” DETAILED ACCOUNT OF VARIOUS SCHEMES. 37 the company, any balance of profit remaining will be divided into two parts, of which one-half shall belong to the ordinary share- holders, and go to augment their dividend, and the other half shall belong to the total wages fund of the workpeople, clerks, and other employees of the company, excepting such as are paid wholly or in part by commission.” The company’s accounts ai’e audited by a professional accountant. Each employee who has been at least twelve months in the company’s service previous to the annual distribution is entitled to participate, and shares in proportion to the amount of wages earned (in the proportion that the sums paid to him or her in wages or salary bears to the total sum paid in wages and salaries during the year). The bonus is paid in cash. A certain number of employees each year are, of course, not entitled to participate owing to not having com- pleted the qualifying period of twelve months’ service; and a sum is set aside representing what would have been paid to such employees had they possessed the necessary qualification, and is carried to a Provident Fund for the benefit of the employees. The balance yearly remaining to the credit of this fund is invested (under the control of the directors) in the company’s debentures and preference shares, and forms the nucleus of a superannuation fund. All the benefits provided by the scheme are declared to be a free gift only, no right being conferred upon any person. The company employs from 2,500 to 2,900 persons, of whom, at December 31, 1911, 1,995 were entitled to share in profits. The addition made to wages and salaries by the bonuses paid in 1891-1912 inclusive has averaged 11'9 per cent. The total amount of the bonus allotted in favour of the employees in these 22 years is ,£172,025. The benefits provided by means of the Provident Fund are (a) the payment of two- tliirds of their wages for six weeks to employees who fall ill; (&),the payment of £5 to the representatives of a deceased em- ployee; (c) the payment of £5 to women who, after being five year's in the company’s service, get married; (d) the gradual accumulation of a Superannuation Fund. The amount now standing to the credit of this Superannuation Fund, which will be for the benefit of all employees who have been 25 years in the service of the firm, and will come into operation in 1915, is over £37,000, invested in the company’s debentures and fully-paid preference shares. With regard to investments by the employees individually, the company states that the acquiring of shares in the business by employees has not developed as a feature, and the employees’ hold- ing as regards both voting power and capital is negligible.* In reply to the question addressed to them in the present inquiry as to the results obtained by the adoption of Profit-sharing, the Company has sent the following observations: — “ The directors of the company are generally satisfied with the results of their scheme. Though all that was expected of it has not been realised—mainly because the most of the employees are young girls, whose main ambition is marriage, and consequently take no great permanent interest in the * On this point, see remarks of one of the company’s managing directors on Pp. 11 and 12. 38 II.—-PRIVATE FIRMS AND COMPANIES. business—nevertheless it has undoubtedly called forth extra zeal, specially among the higher-grade employees, and has tended to greater stability of employment. But the happiest results of the scheme have been the harmonious relations sub- sisting between the management and employees, and any- thing in the nature of a strike has been unheard of during the company’s experience of Profit-sharing.” In the scheme last described, the part of the share in profits allotted to the employees, which is not paid out at once in cash, but is reserved to be used for their benefit later on, forms a Pro- vident Fund, the benefits provided by which accrue to the partici- pants collectively. In other cases the reserved bonus is credited to the account of each participant individually. As an example may be cited the scheme which has been in force since July, 1889, at the Hele Paper Works, Cullompton, where 223 persons are employed, of whom, on December 31, 1911, 157 were entitled to share in the profits of their employers (the Hele Paper Company, Limited). The rules of this scheme provide for the payment to the employees of a bonus dependent on the profits of the business, this arrangement conferring no legal claim, but the amount to be certified by an accountant. Tbe bonus is paid half-yearly, all the men and boys and some of the women in the employment of the firm during the half-year being allowed to participate; the total bonus is “ distributed among participants in the proportion of each worker’s wages to the whole wages of the mill.” One-half of a participant’s bonus is paid in cash, the other half being credited to him as a Provident Fund, on which interest at 5 per cent, per annum is allowed half-yearly; the part payable in cash may, at the option of the participant, be left with the firm on deposit at similar interest. The Provident Fund of an employee may be drawn out when he attains the age of 70, or completes 25 years’ continuous service; if he dies, his representatives get the amount at once. If he quits the service of the firm, provision is made for his getting his Provident Fund promptly. The rules of the scheme provide that the sums credited to the Provident Fund may either be left on deposit with the firm or may be placed in a savings bank; as a matter of fact the former course has been adopted in all cases. The permission given to the employees'to deposit their cash bonus has been taken advantage of to a con- siderable extent. There is at present on deposit with the com- pany a sum of £2,244, belonging to 158 of their employees, and representing partly Provident Fund, partly cash left on deposit. In addition, two of their employees own preference shares of the company to the (nominal) amount of £170: these shares are 5 per cent, cumulative, issued at par, not conferring the right to attend meetings of shareholders. As to the results obtained by Profit-sharing in this case, the company writes:—1' We have no wish to discontinue our Profit- sharing scheme, as there are advantages attached to it'; but we cannot say that it has had any great effect on the zeal of the employees. The relations between ourselves and our employees always have been and continue to be harmonious.” DETAILED ACCOUNT OE VARIOUS SCHEMES. 39 Profit-sharing Deposits. A type of Profit-sharing possessing much interest is that in which the right to participate in profits is made contingent upon the employee’s investing money with his employers, and takes the form of a rate of interest on the employees’ deposits varying with the profits of the business. A system of participation of this natux-e was, in 1866, introduced by the firm of Fox Brothers & Co. (converted in .1896 into a joint-stock company), of Wellington, Somerset. This firm of woollen manufacturers had for some time allowed its managers, foremen, and clerks to l'eceive a bonus calcu- lated in part according to the year’s profits, in part according to the status of each. In 1866 they introduced a plan of receiving from their workpeople sums of money on deposit, to bear a rate of interest never less than 4J per cent, nor more than 10 per cent., but within these limits varying “ in accordance with a certain fixed scale based on profits, which has been prepared by Messrs. Fox Brothers and Co.” The firm undertakes to repay any sum up to £50 on seven days’ notice, above £50 on two months’ notice. The total number of persons at present employed is 1,561, of whom 239 (186 men and 53 women) are depositors under the scheme. The opinion of a member of this firm, Mr. Joseph H. Fox, in respect to the x’esults obtained by the system just described was set forth by him in a paper read in 1881 before the Social Science Associa- tion ;* and in connection with the present inquiry he states that he does not think that the experience of the years that have passed since the paper was read has in any way modified the views therein expressed. After mentioning that the system had been thoroughly appre- ciated by the workpeople, Mr. Fox continues : — “ Secondly.—There has been scarcely any trouble experienced in carry- ing it out, and I am not aware that there has ever been any complaint made of the rate of interest given, although this has varied from 4-1 per cent, to 10 per cent., nor am I aware that it has ever been suggested that the rate of interest was unfair, or any wish expressed to know how it was calculated. The decision of the partners has in all cases been accepted without question. Thirdly.—It has on one or two occasions happened that, when a high rate of interest has been paid, applications for increased wages have followed, it no doubt being thought that as the'business had been pros- perous, a better rate of wages could be afforded. “ Fourthly.—It is very difficult to form an opinion as to the effect pro- duced on the carefulness and attention of the workpeople, and whether in this sense the scheme has answered. I believe it has in the case of many of the foremen and others in places of trust, but these have had, it must be remembered, an additional stimulus from their being partly paid in accordance with results. But with the ordinary workpeople there is not so much scope for showing interest, and as they nearly all work by the piece, it can produce but little effect on their industry. There are, of course, many ways by which economies may be effected—by the saving of material, by care of machinery, and in other ways; but it is very difficult to form a definite opinion as to the results of the scheme in this important respect. It must be borne in mind that in a manufacturing business the skill and judgment shown in the purchase of the raw material and the sale Transactions of Social Science Association, 1881, pp. 671-675. 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 DETAILED ACCOUNT OF VARIOUS SCHEMES. 41 account of the large number of the employees concerned, is that in force with Sir W. G. Armstrong, Whitworth & Co., Ltd., ordnance manufacturers and iron and steel shipbuilders, of New- castle-on-Tyne and Openshaw, Manchester. In the address which Dr. John Watts made to the Co-operative Congress of 1878, it was stated that Sir Joseph Whitworth, the distinguished manufacturing engineer, of Manchester, “ told his own workmen that if they liked to invest part of their wages in the firm he would be their saving's bank, and would give them the same dividend that he got himself on his own capital.”* The business of Sir J. Whitworth was, in 1888, turned into a limited company, which continued the system just described. The rules of the company provided that “ deposits of not less than Is. and not more than £1 of the depositor’s weekly wages will be received from persons in the employ of the company each week,” and that “ on each declaration of the annual dividend by the company, interest will be allowed on the amount standing to the credit of the depositor equal to the rate per cent, of dividend declared on the shares of the company. Such interest will be credited to each depositor, and added to the principal due to him as on and from the 3.1st of March next preceding the declaration of the annual dividend.” Deposits might be withdrawn, with interest at 4 per cent, from the last 31st of March, at from three to fourteen days’ notice; but this notice mig-ht be dispensed with under special circumstances. “ Persons leaving the employ of the company will be repaid their deposits, with interest, at the expiration of fourteen days.” In 1896 the business of Sir Joseph Whitworth & Co., Limited, was amalgamated with that of Sir W. G. Armstrong, Mitchell & Co., Limited, and the combined undertaking was registered under its present title of Sir W. G. Armstrong, Whitworth & Co., Limited. The scheme of profit-sharing deposits above referred to was extended by its application, in a form slightly modified, to the whole of the employees of the amalgamated company. Under this scheme deposits of not less than Is. and not more than ,£1 of the depositor’s weekly wages are received from persons in the employ of the company each week, the maximum amount which may be deposited being £200; in the case of officials paid quarterly these limits are raised to £2 a week, and £400, respec- tively. The directors, however, reserve the right of fixing a limit to the total amount which will be received. The deposits carry a fixed interest of 4 per cent., and, in addition, a bonus is declared each year equal to half the difference between this fixed rate and the dividend payable on the shares of the company, but so that interest and bonus together shall not in any case exceed 10 per cent. Interest and bonus are added to depositors’ accounts unless they give notice to withdraw in cash. Deposits can be withdrawn up to one-half on seven days’ notice, or the whole on fourteen days’ notice: under special circumstances no ® Report of the Co-operative Congress of 1878, p. 37 42 XX.—PRIVATE FIRMS AND COMPANIES. notice is required. Persons leaving the employ of the company will be repaid their deposits at the end of fourteen days.* The bonus paid to the employee-depositors (i.e., the excess over the fixed minimum rate of 4 per cent, which they have received in respect of their deposits) has, taking an average of the last eight years, constituted an addition to their wages at the rate of 2'6 per cent. The total amount on deposit with the company at the end of December, 1911, under the scheme above described, was £241,432, and the number of employees to whom these deposits belonged was 2,788. The number of persons employed by the company in 1911 varied from 15,812 to 15,953.t Shareholding by Employees. Passing now from those types of Profit-sharing in which the employees make deposits with the business by which they are employed to those cases in which the employees of profit-sharing films hold shares, we find that in some instances shareholding by employees, while not compulsory, is encouraged by the provisions of the profit-sharing scheme; while in other cases such investment forms an essential part of the profit-sharing arrangements. Special Advantages for Shareholding Employees. So far as concerns the encouragement of stockholding by employees, probably the most famous of all the instances in which Profit-sharing of this type has been adopted in this country is the well-known experiment made by Messrs. Henry Briggs, Son and Co., in relation to their collieries (the Whitwood and Methley Collieries), near IN" or man ton. The details in regard to this case have long ago been laid before the public with so much fulness* that it is unnecessary in this place to offer more than a brief sum- mary of the leading facts. In 1865 the firm of Henry Briggs, Son & Co. turned their business into a limited liability company, the bulk of the shares being taken by the partners, but a large amount of the capital being offered to the public, with a preference given to the officers, workmen, and customers of the * The scheme is printed in full in Appendix H., pp. 133 and 134. In the cases mentioned in the text the employees’ deposits are unsecured. The form of agreement formerly in force with a company which allowed its employees to invest in its debentures (£5 per cent.), promising to pay the employee debenture- holder, in excess of this fixed interest, the difference between this interest and the rate of dividend paid on its ordinary shares, is printed in Appendix I. p. 135. For a case in which the employees’ deposits are secured by debentures of the employing company, see p. 65. t The employees of the Company have made investments in its securities (apart from the profit-sharing deposits described in the text) ; these investments (the amount of which it is not possible to state) were made on the same terms as in the case of the general public. + See, in particular Methods of Social Reform, by W. Stanley Jevons, pp. 122— 155 ; Industrial Partnerships, by H. C. Briggs ; Thornton, On Labour, pp. 348-355 ; Profit-sharing, by Sedley Taylor, pp. 117-154 ; Die Gewinn- betheiligung, by H. Frommer, pp. 11-34 ; Profit-sharing between Employer and Employee, by N. P. Gilman, pp. 243-272 ; Co-operative Production by Benjamin Jones, pp. 494-499. 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) 44 II.—PRIVATE FIRMS AND COMPANIES. ratio for 1866-67 as 12 per cent, in tlie case of shareholding and 8 per cent, in the case of non-shareholding’ employees; while it would seem that the bonus divisible for 1871-72 was at the rates of 9 and 6 per cent, for shareholders and non-shareholders respec- tively. As regards the numbers participating, it is stated that the number of employees participating in the year ending June 30, 1873, was 1,937, and the number participating in 1874 was 2,218.* It is stated that in 1868 the number of persons employed in these collieries was 989 adults and 214 boys, and that in the early part of 1869, out of 989 adult workmen, 144 held between them 178 shares, equal at par value to £1,780. From the first adoption of the profit-sharing scheme there had been a committee of the workmen, called together from time to time to give advice in respect to improving the processes of coal mining; and, as the accounts were verified each year by a professional accountant chosen by the shareholders, the employees had always a full knowledge of the affairs of the business, though at first no direct control. In 1869, however, one of the workmen shareholders, elected by his fellows, was given a seat as one of the board of five directors. It will be seen that the arrange- ments made to carry out the method of industrial partnership were in many respects singularly complete; and their effect upon the conduct of the workmen was for some time considered to be very satisfactory. A spirit of harmony between employer and employed was developed, such small disputes as arose being amicably settled without loss of time; the coal was got in a more careful manner; there was a considerable saving in timber used for props, &c. The men showed a willingness to work extra hours when this was asked of them in the interests of the business, and generally were readier to obey orders than before the introduction of Profit-sharing. The circumstances which led to the abandon- ment of the method of Profit-sharing were briefly as follows: — Messrs. Briggs had hoped that Profit-sharing would be accepted by their workmen as a substitute for Trade Union organi- sation, they, on their part, abstaining from joining any com- bination of employers for the regulation of wages. “ Until the summer of 1868, the workmen seemed to enter into these views; but at that time a growing desire to join the Union began to manifest itself, on tbe ground that, as the company agreed to pay the average weekly wages of the district as well as a share in the profits, and as the Union tended to raise those wages, it was to the interest of the workmen to aid in that endeavour. ”t In 1872, after the directors had fixed upon August 19 for the annual meeting of the shareholders, they received a notice stating that a great meeting and demonstration of the Miners’ Union was to take place on that day, and requesting that work at the pits should be stopped in order to enable the men to attend. There- upon the managing director, Mr. Archibald Briggs, issued notices to the effect that those who stayed away from work on August 19 * Profit-sharing, by Sedley Taylor, p. 147. f Memorandum by Messrs. Briggs in Sedley Taylor’s Profit-sharing, pp. 122,123. DETAILED ACCOUNT OF VARIOUS SCHEMES. 45 would forfeit all claim to bonus for the future, and must take their chance of losing the bonus for the past year, since it lay in the power of the shareholders to settle what bonus was to be given and to whom; and the men were told in plain terms that they had to choose between Profit-sharing and Trade Unionism. About one-third of the men stayed away from work, and were deprived of bonus until reinstated the following Christmas. During 1873, a year in which the coal trade was very prosperous, the relations between Messrs. Briggs and their men, though not so good as before, were fairly satisfactory; * but in 1874 a dispute arose about the use of “ riddles ” for sifting the coal in the pits. The use of riddles underground had, for reasons into which it is unnecessary to enter here, long been a grievance in the eyes of the Yorkshire miners; during the fat years, when coal was so much sought after that even smudge was saleable, the men had been allowed to send up the coal unsifted, a slight reduction being made in their ton- nage rate of wages. Now that prices were falling, the employers wished to revert to the use of the riddle in their pits; but the Trade Union declared that never again should riddles be intro- duced ; and Messrs. Briggs’s men for some time declined to use them. “ The events above described did not, however, lead at once to the abolition of the industrial partnership system. At the meeting of shareholders held in August, 1874, it was decided not entirely to abandon it, but to give it one more chance, modi- fying, however, the rules regulating the distribution of the bonus, and making these rules more stringent. ”t Not long after this Messrs. Briggs, in common with the other employers of the I district, announced their intention of reducing the men’s wages. This reduction the miners, including those employed by Messrs. Briggs, declined to accept, and a strike of four weeks’ duration ensued. As the direct consequence of this fact, “ the final step was taken, and a resolution passed at the half-yearly meet- ing of shareholders, held in February, 1875, that the payment °f a bonus on the industrial partnership principle should be dis- continued. Many of the men themselves had expressed a wish io the same effect, having an idea that we were in some way merely keeping back a portion of their wages to be probably (but not certainly) returned to them at the end of the year; and they said they would prefer to be paid precisely the same wages, and be put on the same footing as men at other collieries.”% In connection with this case it is worth noting that the system adopted did not partake of the nature of a definite, binding agree- ment between employers and employed, since the shareholders * At this time “ some of the surrounding colliery proprietors, anxious to attract men to their pits and secure as large a share as possible of the great prosperity, and finding the bonus o-iven by our company was a great inducement to men to remain with us, began to offer something beyond the regular wages of the district, saying it was 1 instead of Briggs’s bonus,’ thus strengthening the view already entertained by some discontented men that the bonus was something kept back out of the weekly wages to be given at the end of the year, and that if we could pay it then we could give it to them weekly just as well.” (Memoran- dum by Messrs. Briggs in Sedley Taylor’s Profit-sharing, p. 125). t Memorandum by Messrs'. Briggs in Sedley Taylor’s Profit-sharing, PP- 1‘28, 129. + Ibid., p. 129. 46 II.—PRIVATE FIRMS AND COMPANIES. might (as will have been seen) at any time refuse to vote the bonus. Among the reasons for the workpeople’s dissatisfaction with the scheme appear to have been the facts that the initial rate of dividend reserved to the shareholders before any division of profits in favour of the employees could take place was raised by 50 per cent, when wages advanced, but no proposal appears to have been made to reduce it when a reduction in wages was proposed; that in 1873 a sum of .£30,000 was taken out of the last year’s profits and invested in a new mine, the shareholders getting new shares in respect of the purchase, but the employees losing £15,000 of bonus, which would otherwise have come to them as their share of this £30,000; and that the employees’ share in profits was further diminished, because (as it is stated) “ large sums were placed to depreciation and reserve funds, altogether out of proportion to what is usual, and the men were thereby deprived of the share which ought to have come to them as bonus. In the two years 1873-4, the reserve was increased by £26,600; and in the three years 1873-4-5 ‘ stores, repairs, renewals, and depreciations ’ were credited with £151,377.”* Limited. Partnership by Employees. Under the provisions of an Act recently passed (the Limited Partnerships Act, 1907), it is now possible for the employees of a private firm, as a body, to acquire an interest in its business, their responsibility in respect of the debts or obligations of the firm being strictly limited, and no rights of interference in the manage- ment of the business being conferred upon them. The Act, which came into operation on .January 1, 1908, enables the formation of limited partnerships, by virtue of lyhich one or more individuals can, as limited partners,” enter into partnership with other persons who are called “ general partners.” A body corporate may become a limited partner. The limited partners contribute to the partnership capital in cash or in other property valued at a stated amount, but are not liable for the debts or obligations of the firm beyond the amount so contributed. The Act further provides that “ a limited partner shall not take part in the management of the partnership business, and shall not have power to bind the firm,” but he “ may by himself or his agent at any time inspect the books of the firm and examine into the state and prospects of the partnership business, and may advise with the partners thereon.” The first firm, it is believed, to avail themselves of the oppor- tunity of making arrangements with their employees under this Act was Messrs. Gilbert Brothers, boot manufacturers, of Nantwich, a firm employing 92 workpeople. This firm began by introducing in 1907 a scheme of Profit-sharing, under which a fixed proportion of their profits was allotted to the pay- ment of bonus to their employees; and in December, 1907, 108 of their employees received a bonus in respect of the 12 months ending June, 1907, under this scheme. In 1908, however, this * Co-operative Production, by Benjamin Jones, pp. 497, 498. DETAILED ACCOUNT OF VARIOUS SCHEMES. 47 system of Profit-sharing was further developed by taking advantage of the new Limited Partnerships Act. The employees of the firm formed a Society, which, in June, 1908, was registered under the Industrial and Provident Societies Act, 1893, under the name of “ Gilbert Brothers’ Employees, Limited.”* By the Special Buies of this Society its objects are declared to be “ to carry on the industries, businesses and trades of manufacturers of and dealers in boots, shoes, and every kind of footwear, both wholesale and retail, and whether alone or in limited partnership with any other Society, company, firm, or person.” The llules further provide that “ the following may be admitted members; (a) employees of Gilbert Brothers, Wholesale Shoe Manufacturers, Jiantwich, who have been employed for at least six months; (b) the managing partners for the time being of that business; (c) other persons approved by such managing partners and elected by the Committee of the Society. This Committee, which is elected from those who have been members of the Society for at least two years and have at least £10 paid-up in the shares of the Society, possesses the ordinary powers and duties of a Committee of Management, but does not possess certain special powers and duties, which are assigned to a separate Committee termed “ the Finance Committee.” This Finance Committee consists of not less than four and not more than five members, and its powers and duties are thus defined : — “ (1.) It may at all reasonable times inspect the books of any partnership in which the Society is a limited partner and examine into the state and prospects of the partnership business, and may advise with the general partners thereon and (in so far as the same is permitted by the Limited Partnerships Act, 1907), may meet and confer with the general partners when- ever occasion requires upon all differences and ques- tions concerning the capital of the partnership and the managers’ salaries. c' (2.) It shall inform the employees of any such partnership, by notice in writing to each employee, or at a general meeting of the Society, how much (hereinafter called Part A) of the profit-sharing fund as defined in any agreement for sharing profits between such partner- ship and its employees, is paid as bonus or dividend on the wages or salary of those employees taken col- lectively who, at the date to which the accounts of the partnership were made up, were members of the Society or under the age of 16 years, and how much (here- inafter called Part B) is paid as bonus or dividend upon the wages or salaries of the other employees collectively. “ (3) It shall further privately inform the accountant of the Society how much of Part A is declared in respect * The Special Rules of this Association are printed in Appendix J PP- 135-138. 48 II,—PRIVATE FIRMS AND COMPANIES. of the wages or salary of each member, and of each employee under 16 years of age.” It is provided that “ all sums received by the Society, under arrangements of or with Gilbert Brothers, for sharing profits with its employees, shall he treated as capital and not as income of this Society. They shall be invested according to the rule with respect to investment set forth below and credited in the books of the Society, as follows: — “ (1.) Each member of the Society shall be credited with the amount received by the Society as dividend or bonus on his wages or salary, such amounts not to be withdrawn so long as he is a member of the Society and has less than £200 fully paid-up in the shares of the Society; but, whenever there is a sufficient sum standing to his credit, enough shall be transferred to his share account to create a fully paid-up share in the Society until he has £200 fully paid-up in the shares of the Society; and application for membership of the Society shall be taken to include application from time to- time for any such share or shares. “ (2.) Any amount received by the Society in respect of an employee under 16 years of age shall be entered in his name until he is 16 years of age. If he then, or within one year afterwards, becomes a member, it shall be transferred to his share account, and otherwise to Part B. “ (3.) The Society shall hold that part of its capital repre- senting Part B as a Non-Members’ Provident Fund for the benefit of all employees of Gilbert Brothers, who, from time to time, are not members of the Society, or their wives, children, or widows, or persons dependent on them, to be administered under regu- lations made by the committee of management of the Society from time to time and approved by the managing partners of Gilbert Brothers.” Shares are to be of two kinds, “ Invested ” and “ Accumulated.” The latter shall be shares paid-up in the manner stated above under (1) and (2). All other shares shall be called Invested Shares. Invested Shares shall have preference both as to payment of dividend and in case of a dissolution of the Society. No person shall hold more than £100 in Invested Shares. The capital of the Society, except such sums as may appear to the Committee to be likely to be necessary to meet the current expenses of the Society, and to pay out any of its members who may at any time cease to be employees of Gilbert Brothers for at least six months, or to satisfy the purposes for which the Non- Members’ Provident Fund is held, shall, in furtherance of its objects, be applied in augmentation of the Society’s share or interest in Gilbert Brothers as a limited partner therein, or in the purchase of the whole of such business. Subject to the above, the Committee may invest in the manner provided in the general rules. DETAILED ACCOUNT OP VARIOUS SCHEMES. 49 Interest on shares shall be at the rate of 5 per cent, per annum whenever the profits of the Society, after extinguishing any adverse balance and providing for reduction of preliminary expenses, and for any subscriptions due to propaganda organisa- tions, suffice to pay such interest. Any surplus profit shall be applied in forming a Reserve Fund, applicable by resolution of any general meeting on a recommendation of the Committee, to meet any contingency affecting the Society, or for any other purpose, whether within the objects of the Society or not, other than the payment of interest on shares, provided that notice of every such recommendation be given to every member not less than six clear days before such meeting. The terms of the partnership agreement which, on July 28, 1908, was entered into between Messrs. Gilbert Brothers, as general partners, and the Society, as limited partner, provides that the partnership should commence as from June 30, 1907, and should continue until three months’ notice of intention to terminate it should have been given by any partner, or until the whole of the capital should have been acquired by the limited partner. The agreement also provides that, after paying salaries to the general partners (the two Messrs. Gilbert), depreciation, and interest on capital at 5 per cent., the remaining profit shall go to form a profit-sharing fund, until Is. in the pound shall have been paid on wages, and, after that, a reserve fund. The agreement also provides, that, as the amount of capital belonging to the employees increases, the capital belonging to the general partners shall be reduced; and that, when the two general partners shall have been entirely paid out, then the business shall belong to the Employees’ Society as their sole property, and be carried on by that Society as a Workers’ Pro- ductive Society. Of the 92 persons at present employed by Messrs. Gilbert Brothers 66 are members of Gilbert Brothers’ Employees, Limited. Employees’ Investment Society. In the case last described, the employees, although capable of acquiring shares in their employer’s business, have at present no part in the management of its affairs. As an example of special arrangements made with the object of enabling the employees of a profit-sharing firm to acquire by the investment of their bonus not only a financial interest ni a business, but also a considerable share in the control of the undertaking, may be cited the case of Foster, Sons & Company, Limited, of Padiham, near Burnley, a firm of builders and con- tractors, employing in 1911 from 56 to 80 persons. This business was originally a private firm (William Foster & Sons), and in that form had already introduced a system of Profit-sharing in January, 1900. Under this scheme capital was to receive, in the first place, a fixed rate of interest, while the remaining net profits were to be divided in stated proportions between the firm and its employees, the share of the employees being divisible among them in cash, in proportion towages earned. In 1903 the business was turned into a joint stock company, while, at the same time, an association was formed of the em- 24548 D 50 II.—PRIVATE FIRMS AND COMPANIES. ployees of tlie new Company with the special object of enabling them to acquire an interest in its capital and a share in the con- trol of its affairs. The title of this society,x registered under the Industrial and Provident Societies Act in April, 19Ud, is “ Fosters’ Employees, Limited ” ; and it is stated that most of the employees of Foster, Sons & Co., Limited, joined the Society on its formation. By the Articles of Association of the Company its directors are required to retain 1,000 of its (£1) shares for issue to the Em- ployees’ Society. The disposable profits of the company, after providing for the creation and maintenance of a reserve fund, are to be divided in the following' manner: —The shares are, in the first place, to receive a dividend for each year at the rate of 5 per cent, per annum,* and the remaining profits are to be divided as follows : One-tentli is to go to the Employees’ Society for its Common Fund (see below), and four-tenths to the Employees’ Society to be applied for the purchase of shares in the Company and for the benefit of the employees: as to this four-tenths the Company is to declare how much is paid as a bonus on the wages or salary of each employee who is a member of the Employees’ Society, and how much is paid as a bonus on the wages or salaries of the non-members of that Society collectively, such amounts to be strictly in proportion to the respective wages and salaries paid. Finally, one-fourtli is to go to the manager or managers for the time being; and the remaining one-fourth is to be paid to the holders of the ordinary shares as a further dividend. So far as concerns the share to be taken by the employees in the management of the affairs of the Company, it is provided in the first place that the Employees’ Society shall be entitled to appoint one delegate for every 100 shares held by. it, to attend the general meetings, and to speak thereat, but one only of such delegates shall be its proxy to vote thereat; and, in the next place, that the employees shall be represented on the Board of Directors in the following manner: — The number of the Directors is to be not less than three nor more than five, and the first Directors are to be Mr. Thomas Foster and Mr. John Foster (the partners in the former firm of William Foster & Sons), and a third person appointed by them. So long as Messrs. Thomas and John Foster shall together hold one-half of the share capital of the Company for the time being issued and are willing to serve, they shall continue to be Directors. The Employees’ Society shall be entitled to appoint one of its members (whether himself a shareholder in the Company or not) a Director of the Company whenever it holds at least one-tenth of the share capital of the Company for the time being issued, and one more when it holds one-fifth. In the last case the total number of Directors shall be five. Subject to the provisions last stated, the Directors may appoint additional Directors, but so that the total number of Directors shall not exceed the maximum above specified. * Provision is made for the making-up of any deficiency on the dividend for the preceding year. DETAILED ACCOUNT OF VARIOUS SCHEMES. 51 The special objects of the Employees’ Society are declared by its rules* to be to deal in the shares and debentures of Foster, Sons & Company, Limited. Subject to the provisions stated below as to the Common Fund, all sums received by the Society under arrangements of that Company for sharing profits with its employees are to be treated as capital and invested in the manner stated below and credited in the books of the Society as follows: — (1.) Each member of the Society is to be credited with the amount declared by the Company to be paid as bonus on his wages or salary, and whenever there is a sufficient sum standing to his credit, enough shall be transferred to bis share account to create a fully paid- up share in the Society. (2.) The bonus on wages of non-members of the Society is to be credited collectively to a non-members’ Provident Fund, to be administered as a trust for the benefit of those employees of the Company who are not members of the Society, or their wives, children, or widows, or persons dependent on them. (3.) The sums declared by the Company to be paid for the credit of the Common Fund are to be applied for educational, social, provident, propagandist and other purposes for the benefits of the members of the Society or their wives, children, widows, or persons dependent on them. The capital of the Society is to be invested in fully paid-up shares in the Company, so long as such shares can be acquired, by allotment, at par. Thereafter the committee of the Society are, if authorised by a general meeting, to invest any further capital in purchase at the market price of additional shares or debentures in the Company. If any balance-sheet of the Society would otherwise show a deficit in capital account, the amount of such deficit shall be written off the Reserve Fund and failing that off the Common Fund. Tlie profit and loss of the Society is to be calculated annually and at the same time its investments are to be valued by the committee. Any deficiency in the value so set upon these invest- ments as compared with their nominal value is to be treated as a loss by the Society for that year, and any surplus above such nominal value is to be put to Reserve Fund until such fund equals one-fourtli of the nominal value of the Society’s investments for the time being; and any further surplus is to be treated as profit for the year. Out of the profits of the Society share capital shall in the first place receive interest at the rate of 5 per cent, per annum, when- ever the profits suffice to pay such dividend, after extinguishing any adverse balance and providing for reduction of preliminary * The Rules of the Employees’ Society consist of “ General Rules for an Industrial and Provident Productive Society,” published by the Labour Co-partnership Association, 6, Bloomsbury Square, London, W.C., modified in » e " Special Rules” of this Society. These Special Rules are printed in Appendix K., pp. 138-140. 24548 D 2 52 II.—PRIVATE FIRMS AND COMPANIES. expenses and paying any subscriptions due to co-operative propa- gandist associations. Any surplus profit is to be applied as follows: — “ (1.) In paying the employees of the Society a dividend upon the wages or salaries received from the Society during the year at the same rate as the dividend on wages declared by the company for the period in question. “ (2.) If any surplus still remains, in forming a Eeserve Fund, until such fund shall equal 25 per cent, of the nominal value of the society’s investments for the time being. Such fund shall be applicable by resolution of any general meeting on a recommendation of the com- mittee to meet any contingency affecting the society or for any other purpose, whether within the objects of the society or not, other than the payment of interest on shares, provided that notice of every such recommendation he given to every member not less than six clear days before such meeting. “ (3.) If any surplus still remains, in paying any arrears of interest on shares which in any previous year have not received 5 per cent., the oldest of such arrears to be paid first. “ (4.) If any surplus still remains, in paying the committee for their services according to any scale from time to time approved hy the general meetings; and “ (5.) If any surplus still remains, in paying in cash a further dividend on shares for the year.” Taking together the profit-sharing bonuses distributed first by the firm of William Foster & Sons and subsequently by the Company (Foster, Sons and Company, Limited), the average ratio which the bonuses distributed in the years 1901-1911 have borne to the wages and salaries of the participants has been 2'5 per cent. Out of the total capital of the Company (4,000 shares of £1 each) 764 shares are owned hy the Employees’ Society. These shares entitle the Society to one-fourth of all the votes that can be given at a general meeting of shareholders of that Company; and out of the four directors of the Company two are employees, appointed by the Employees’ Society. In reply to the question addressed to the Company as to the results obtained by the arrangements above described, the Company states that the adoption of this system has proved “ satisfactory on the whole, though for four years, owing to low competitive prices, there has been no profit. It has improved matters in increased zeal on the part of the more intelligent men. There are also more harmonious relations [between employer and employed]. Many men, however, are too low in general intelligence to grasp the principle underlying either Profit-sharing or Co-partnership.” Investment in Shares in Names of Trustees. Another form of profit-sharing scheme is that under which the employees may acquire a share in the capital of a business by the investment in shares, to be held by trustees on behalf of the 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 54 II. — PRIVATE FIRMS AND COMPANIES. time in sympathy with the general * labour unrest ’ through- out the country. They returned to work on practically the same terms as we offered them before they went out, and we have reason to believe that a large majority of them were led by a few, and kept from work by ‘ peaceful pickets,’ thus causing the whole of them to lose three or more weeks’ wages unnecessarily. We are giving our scheme a further trial, as it is certainly appreciated by the employees generally, and it has always been our wish to maintain harmonious rela- tions with them. It has the effect of inducing them to take an interest in their work and teaching them to avoid waste; hut as the speed at which a great deal of our work is done cannot be accelerated through any effort of the employees, it is doubtful whether we are recouped for the extra expen- diture, excepting through small savings made by care on the employees’ part to avoid waste.” Profit-Sharing in Gasworks. Out of the total of 106,189 persons employed by all the 133 firms known to the Department to have profit-sharing schemes in operation, no less than 28,246 are in the employment of Gas Companies. A short account of the scheme in operation in relation to the employees of the South Metropolitan Gas Company of London, the pioneer of this form of Profit-sharing, will he of interest. South Metropolitan Gas Company. At the beginning of November, 1889, the South Metropolitan Gas Company, which had already been giving its officers and foremen an annual bonus dependent upon its profits since 1886, adopted a scheme of general participation. In March, 1889, “ The National Union of Gas Workers and General Labourers of 11 Great Britain and Ireland ” was formed, and shortly afterwards succeeded in obtaining very considerable concessions in favour of men employed in gasworks. In August-September, 1889, the London dock strike took place; and a general movement was started for securing better terms of employment for the v/orking-classes, and especially for labourers doing heavy work demanding a minimum of technical skill, such as the work required in gas making. In the course of the autumn the Gas Workers’ Union made certain demands upon the South Metro- politan Gas Company; these were not resisted, hut the company’s officials became convinced that further concessions wdiich the company would feel unable to grant would probably be put forward by the Union, and that “ a strike was likely to take place “ at any moment without any warning.” In order to avert this contingency, Mr. (afterwards Sir) George Livesey, the chairman of the company, induced the directors to assent to the adoption of a special system of Profit-sharing. The company employs a large number of workmen, some all the year round regularly, the others in winter only. The offer made (on November 6, 1889) to all the regular staff in the service of the company was as follows. The shareholders (as the law then stood) were allowed to receive a DETAILED ACCOUNT OF VARIOUS SCHEMES. 55 dividend of 10 per cent, when the price of gas was not above 6d. per 1,000 feet, and an additional dividend of J per cent, for each reduction of one penny per 1,000 feet in the price of gas; the plan proposed was to give the employees a bonus of “ 1 per “cent, on their year’s wages for every penny reduction below “2s. 8d. per 1,000 feet” (the price then being 2s. 3d!.). In addition, there was to be placed to the credit of every man who should accept the scheme a sum equal to what he would have received as bonus if the scheme had been in force during the pre- ceding three years, this “ nest-egg ” being equivalent to 9 per cent, on one year’s wages.* In order to take the benefits con- ferred by the profit-sharing scheme, the workman was required to sign an agreement binding himself to work for the company for twelve months at the current rate of wages, the company agreeing to employ him during that period, and also undertaking “that no alteration shall be made in the wages to the disadvan- “ tage of any of the men.” The money coming to the employees under the scheme was not to be withdrawn, except in case of death, during the first year, “ nor during the first five years, “except in case of death, superannuation, or leaving the service “ of the company,” but was to remain on deposit at 4 per cent, with the company, and was to be forfeited in case of a strike or wilful injury to the company. Within a week about 1,000 of the regular workmen signed the agreement; but by many of the men much dissatisfaction was felt with the company’s proposals. A. very large number of stokers, being employed for the winter only, found that the scheme did not extend to them, and their hostility was, no doubt, a potent factor in promoting wide-spread discontent with the project. In consequence of a meeting between the directors and representatives of the workmen who had signed agreements, held on November 21, 1889, the company withdrew the clause under which a man was to forfeit his bonus in case of strike or wilful injury, agreed to allow the future annual bonuses to be paid out in cash, and made other modifications in order to meet objections. The scheme was issued in a revised form on November 27, 1889, provision now being made for paying a bonus to workmen employed during the winter only (as well as to the regular men), subject to their sig'ning an agreement to serve the company for three months. However, the Gas Workers Union manifested a strong aversion to the scheme on a variety of grounds, the most important objections being that the scheme was likely to induce men to leave the Union, and that men bound by twelve- monthly agreements, especially by agreements terminating at different dates, and punishable for breach of their contracts by penalties of a criminal 1" as well as of a civil nature, would find it impossible to strike with effectiveness, if such a measure should * This “nest-e«g” offer remained open until December 31, 1889. The original offer stated the amount as equivalent to 8 per cent, on one year’s wages ; this was altered on November 27, 1889. 1* Persons employed in gasworks, such as those of this company, who break a contract of service can, under certain circumstances, be punished by fine or imprisonment under the Conspiracy and Protection of Property Act, 1875 (38 & 89 Yict. c. 86, sec. 4). &6 II.—PRIVATE FIRMS AND COMPANIES. appear necessary 'with a view to obtaining1 any desired alterations in the conditions of employment. Accordingly, the Union insisted that the profit-sharing1 scheme should be abolished, and [subsequently explained to be a mistake for or] that the men who had accepted it should be removed from the works; and to enforce this demand over 2,000 men (practically the whole of the company’s stokers) came out on strike on December 12, 1889. The company filled the places of the strikers; and the strike, having virtually worn itself out, came to an end on February 4, 1890. The lines upon which the profit-sharing scheme was carried out were materially changed in 1894, when it was arranged that the rate of bonus should be increased from 1 to ljj- per cent, on wages for every penny at which gas was sold below the standard price; provided that, when the rate of bonus reached 9 per cent., the further increase was to be at the old rate of 1 per cent. The new arrangement applied to employees who should agree to have one-half of the whole amount of their bonus for the current year invested for them in the stock of the company; the bonus was to be calculated on the daily wages, no account being taken of over- time, and as to men on piece-work, on the amount the men would have earned at their ordinary rates in the regular working hours; the sums to be thus set aside out of bonus were to be invested in the names of trustees (three in number, one director, one officer, and one profit-sharing workman); and when a man had so credited to him an amount sufficient to buy £5 worth of stock (the price of which was then £12 15s.) a stock certificate should be issued in his name. Such winter men only as arranged to come back the following winter were allowed to have their bonus on the new scale. The company also undertook to allow 4 per cent, interest upon all withdrawable amounts and any other savings, and to arrange for the investment of any such sums in its stock or shares. The agreement which the company required its employees to sign as a condition of their participation in profits* required the employee to state that he was not a member of the Gas Workers’ TJniont and the continuance of his employment was made con- ditional on his not joining that Union* ; but these restrictions were dropped many years ago. The form of agreement, which for a long time has been and now is in force, is printed at p. 145; the period for which the men engage themselves is, for the most part, 12 months, save in the case of the winter men, whose terms of service vary from 3 to 6 months. The Rules of the scheme provided for the appointment of a Profit-sharing Committee (the * “ The directors reserve the right to refuse permission to sign an agreement to any man who takes no interest in the welfare of the company, or who is wasteful of the company’s property, or careless or negligent in the performance of his duty.” t l’or the reasons which induced the company to insert this declaration in the profit-sharing agreement (which originally contained no such declaration) see the evidence given by Sir G. (then Mr.) Livesey before the Labour Commission, Evidence before Labour Commission, Group C., Yol. III., p. 244, also p. 238 and p. 598. 4 The Company also had a rule against the employment of members of the Coal Porters Union ; in a circular issued by the Chairman of the Company in September, 1899, it was stated that “ the prohibition stands to this day, but no inquisitorial methods are adopted to enforce it.” DETAILED ACCOUNT OP VARIOUS SCHEMES. 57 name of which was in September, 1903, changed to “ Co-partner- ship Committee ”) and for the election of auditors to supervise the accounts, the terms of these provisions being as follows: — “ 11. A committee of management shall be elected, to consist of the chairman of the board of directors, and 17 members elected by the board, and 18 members elected by the profit-sharers in proportion to the numbers at each station, who shall be elected by ballot; one-third of the members of the committee to retire by rotation every year, but to be eligible for re- election. Seventeen members shall constitute a quorum, of which not less than eight shall be workmen, and every resolution to be binding at such meeting shall have for its support a majority of the members of the com- mittee present at, and voting upon, the resolution. “12. The committee shall appoint a secretary, who shall have no power of voting. “ 13. In the event of any difference arising as to the construction of these rules, it shall be referred to the committee, whose decision shall be final and conclusive. “ 14. There shall be two auditors, one to be elected by the workmen, the other to be appointed by the company, whose duty will be to compare and initial the workman’s pass-book with the general account . . . “ 15. The committee shall meet for the transaction of business when summoned by the secretary, but not less than twice in each year; and on a requisition of 20 employees or three of their own number at any time. “16. The secretary shall receive all notices, summon all meetings of the committee, and obey the orders of committee in all other matters and things whatsoever.” Other alterations have been made in the scheme since 1894. As from January 1, 1898, the interest allowed on the employees’ deposits wTith the company was reduced, the reason for this alteration being thus explained in the company’s half- yearly Report:—‘‘When the Scheme was started, the rate “ of interest paid by the company on new issues of Ordinary “ and Debenture Stock averaged nearly 5 per cent., and that being so the Directors felt justified in offering 4 per “cent, to the employees on their deposits; but now the average ‘ rate paid by the company on new issues is rather under 3| per “ cent. Under these circumstances the Directors felt that it was ‘ not in accordance with sound business to pay more on the “deposits. The question was explained to the workmen’s repre- “ sentatives, who unanimously agreed that it would be right to “ reduce the rate of interest. To encourage thrift the Directors ’ proposed that 4 per cent, should be continued on small deposits “ (£20 was the limit adopted); and on all amounts over that limit “the rate of interest was reduced to 3 per cent, from January “ 1st last. This was readily accepted by the workmen, and “excepting a few hundred pounds withdrawn for investment in “ the company’s stock, the deposits remain as before the reduction ‘ of interest.” It was at first found that a considerable proportion of the employees failed to avail themselves of the opportunity afforded them of leaving the withdrawable part- of their bonus on deposit with the company. The company accordingly gave notice in August, 1899, that those participants in the bonus who, during the past five years, had regularly withdrawn all their withdrawable 58 II.—PRIVATE FIRMS AND COMPANIES. bonus, would at the next distribution, in 1900, have nothing placed in their withdrawal account unless they should deposit with the company, week by week, a sufficient sum to equal by June 30, 1900, a week’s wages: it was, however, provided that, if a man should have withdrawn money to invest it otherwise, this notice was not to apply to him. Further, at the end of 1900, it was announced that “ all those men who have withdrawn “ their bonus must deposit not less than 6d. a week in the Com- “ pany’s Savings Bank to entitle them to the full bonus next “ June.” By the Company’s Act of Parliament of 1900 the starting point of the sliding scale in relation to the dividend of the shareholders was, as from July 1, 1901, lowered from 3s. 6d. per 1,000 feet to 3s. Id. In the revision of the rules of the profit-sharing scheme which came into force on the same date, the starting point of the bonus scale was made 3s. Id. instead of 2s. 8d.; and instead of the two rates previously in force (1 per cent, on wages if all the bonus were withdrawn and 1£ per cent, if half were invested in stock) bonus was fixed to be paid in future at one uniform rate, viz., three-quarters of one per cent, on wages for every reduction of one penny in the price of gas below 3s. Id. per 1,000 feet. At the same time the investment of one- half of the bonus in the company’s stock was made obligatory for all except the winter men, and the minimum amount of stock to be purchased out of accumulated bonus was raised from £5 to £10. Winter men under agreement were to be entitled to the full bonus provided they returned in the following winter and left the with- drawable half on deposit with the company, the other half being invested in stock on their behalf. If, however, they chose to take the withdrawable half in cash, they would not he entitled to any investment in stock. Should the half bonus at any time amount to 5 per cent., the maximum payable to winter men taking payment in cash would be reached. With regard to the disposal of their stock by employees it was now provided that “ Any man “ selling his stock to any outside party, without the consent of “ the secretary of the company, will at once cease to be a Profit- “ sharer .... those wbo sell their stock except for the “ best reasons, such as investing in the Building Society or buy- “ ing a house, and those who regularly withdraw their half bonus, “ will be struck off the list. They may, however, again become “ qualified by saving for two consecutive years an amount equal “ to one week’s wages in each year.” By the same revision the rate of interest on money of the employees deposited with the company was made a uniform 3 per cent., irrespective of amount. By the latest revision of the Co-partnership Rules, which came into force on July 1, 1910, an important alteration was made in regard to the treatment of the bonus. TJp till then, while one- half of tire bonus was required to be invested in the company’s stock, the other half might either be left on deposit with the company or invested in stock, or might be withdrawn at a week’s DETAILED ACCOUNT OF VARIOUS SCHEMES. 59 notice. Now it was laid down that this second half of the bonus is to he “ left in the company’s hands to accumulate at interest, “ or it may be invested in stock with the trustees, or it may be “ withdrawn under special circumstances by giving a week’s “ notice.” Another change made by the 1910 revision was the increase in the number of members of the Co-partnership Committee from 36 to 54; and it is provided that “ candidates must hold and con- “ tinue to hold while in office on the Committee not less than “ £25 of stock, and they must have been not less than five years “ in the company’s service.” The Co-partnership Rules of the South Metropolitan Gas Com- pany are printed in full in Appendix L, pp. 141-144. Speaking generally, a large part of the functions of the Co- partnership Committee* consists in smoothing away friction which may arise between individual workmen and their employers, and in removing suspicions entertained by a workman that he is not being treated fairly. For this purpose a very important part is played by the workmen’s representatives on this Committee to whom the workman who thinks himself hai'dly dealt with applies in the first instance. In very many cases a talk between the workman and the representative on the Co-partnership Committee of the class of employees to which he belongs suffices to allay the man’s discontent. Should this not be the case, the next step is for the representative before whom he has laid his case to put the matter before the superintendent or other official in charge of the depart- ment of the works in which the workman is employed. If the interview between the official and the representative should fail to produce results satisfactory to the complainant, then the case is brought before the Co-partnership Committee. But the necessity for this step occurs but seldom, most cases being settled in the manner above mentioned. When complaints come before the Committee its decision is always accepted without demur. In a certain number of cases, however, the matters which have come before the Co-partnership Committee have concerned, not individual workmen, but the employees of the Company as a whole. In this manner the rules of the Superannuation Fund of the Company have from time to time received necessary revisions. Perhaps the most important of the many useful tasks that have been performed by the Co-partnership Committee has been the settlement of the rules of the Company’s Accident Fund, and the subsequent revisions of these rules necessary to adapt them to be certified (as they have been) as a Contracting-out-Scheme under the Workmen’s Compensation Acts. In relation to this Scheme the Co-partnership Committee acts as referee in cases of disputed The account given in the text is based upon information supplied by the secretary of the Co-partnership Committee and by certain of the workmen’s representatives on the Committee. benefits, the entire administration of this Accident Fund being left in its bands.* On August 27, 1898, a scheme for the election by the officers and workmen of the company of employee-directors, made under the provisions of the Company’s Acts of 1896 and 1897, came into operation. This scheme was to continue in force for three years (subject to cesser, if the amount of the investment of the employees in the stock of the Company should fall below the nominal amount of £40,000), and was renewed in 1901. In 1907 the scheme was again renewed for a further period of 43 years. It is, however, subject to prior determination should the employee- shareholders reduce their holding' of stock below certain specified limits, or should the shareholders resolve that the Co-partnership Scheme no longer answers its purpose of promoting a true union of employers and employed. Such resolution is to be subject to the approval of the Board of Trade. The number of employee directors is not to exceed three, of whom one shall be a salaried officer, and the other two employees in receipt of weekly wages; and it may be reduced below that number if the amount of stock held by the employees should decrease. At the date of the adoption of the 1907 scheme the employees held stock of the Company to the aggregate amount of approximately £200,000, or one-thirty-second of the total capital of the Company; and the scheme provides that: — “If at any time the aggregate investment of the employees should fall back by 10 per cent, of its amount below any figure it may have attained less than one-tenth part of the paid-up capital, the number of employee- directors shall be reduced to two by lot, provided the reduction of the aggregate holding of stock is general with the salaried staff and the weekly wage-earners. If it is entirely or mainly in either section, justice requires that section to lose a director. If the reduction should amount to 20 per cent, the number of employee-directors shall be reduced to one by lot. Provided that if the aggregate investment should be restored to the original maximum the directors lost by the first and second reductions shall be restored. A reduction of 30 per cent, shall disqualify the remain- ing employee-director.f So long as the aggregate holding exceeds one- tenth part of the ordinary nominal capital, the above provisions as to reductions shall not apply.” With respect to the qualification of an employees’ director it is provided that: — “ The qualification of an employees’ director shall be two-fold, the having been continuously not less than 14 years in, and continuing in, the employ * In connection with this Accident Fund a system of “ Juries of Workmen” is in force. The rules of the Fund provide that an inquiry shall be made into every accident that is a charge on the Fund, and may, at the discretion of the Company’s engineer, be made into any other accident. “ Every jury shall consist of not more than two members of the Co-partnership Committee of the Station, not more than four from the Department in which the accident happened, and the remainder [making the number up to 12] in order from the Jury List.” The duties of a jury include that of investigating the circumstances causing the accident, and stating “ whether any blame attaches to any official or workman, or whether the plant, machinery, or means of protection were defective, if they are satisfied there has been any neglect or carelessness or defect,” and “ if, in the opinion of the jury, anything can be done to prevent a similar accident in future, they shall make such recommendation as they may consider necessary.” f If the conditions laid down as to the aggregate holding of stock by employees are at any time restored, then the Directors, with the Shareholders’ consent, may revive the scheme. DETAILED ACCOUNT OF VARIOUS SCHEMES. 61 of the Company and the having held for not less than 12 months prior to the date of election, and the continuing to hold, not less than £120 stock of the Company, accumulated under the Co-partnership Scheme. As the aggregate holding of stock increases, so shall the qualification . of employee-directors increase in the following proportion : “ Aggregate holding £200,000, qualification £120 „ „ £300,000, £140 „ „ £400,000, „ £160 „ „ £500,000, „ £180 One-tenth of capital or more, ,, £200.” Taking the whole period during which the profit-sharing scheme has been in force, the bonuses paid under the scheme have made an addition to the wages and salaries of the participants at the average rate of 6'9 per cent. The number of persons employed by the company in 1911 varied between 5,534 and 6,704, of whom, at the end of 1911, 5,800 were entitled to share in profits. In all, 5,656 of the company’s employees hold between them ordinary stock of the company to the (nominal) amount of £301,490 (of whom 4,767 hold in their own names £290,700, the trustees holding £10,790 on behalf of 889 employees).* In addition, the company holds on behalf of 5,534 of its employees deposits (accumulated bonus and other savings) to the total amount of £54,260. With regard to the share in the control of the affairs of the company possessed by its employees, it is estimated that out of the total number of votes which could be given at a general meeting of the shareholders the proportion representing the voting strength of the employee-shareholders is about 2 per cent.; while of the ten directors of the company three (one official and two workmen) are representatives elected by its employees. In reply to the questions addressed to it by the Department as to the results of the system above described" (asking whether the system had proved satisfactory, whether it had called forth extra zeal, and whether it had tended to promote harmonious relations between employers and employed and avoidance of strikes and disputes) the company states “ To all the above questions—Yes.” Other Gas Companies. The example set by the South Metropolitan Gas Company in 1889 was followed in 1894 by the Crystal Palace District Gas Company (known since 1904 as the South Suburban Gas Com- pany), which adopted a system generally similar to that of the pioneer Company. Seven years later, in 1901, a similar scheme was introduced by the Chester United Gas Company and the Commercial Gas Company. Until the year 1908 these four Gas Companies were the only ones that had profit-sharing arrange- ments in force; but in 1908 12 such companies, in 1909 nine (including the Gas Light and Coke Company of London, employ- ing 10,000 to 11,500 persons), in 1910 two, and in 1911 three Gas Companies adopted profit-sharing schemes; and up to the end of * It should be understood that some of the 4,767 employees holding stock in their own names also have fractions of £10 held for them by the trustees. 62 II.—PRIVATE FIRMS AND COMPANIES, June, 1912, their example had been followed by three other Gas Companies. It is of interest to note that these 33 profit-sharing Gas Companies manufactured between them in 1910 49 per cent, of the total gas produced by all the Gas Companies of the United Kingdom. The systems of Profit-sharing which are in operation in these undertakings are upon lines generally similar to the bonus and investment scheme of the South Metropolitan Gas Company, just described, but exhibit certain variations from that scheme, the more salient of which will now be indicated : — Conditions attached to Participation.—Participation in profits is almost invariably made conditional on the signing of an agree- ment of service, usually for 12 months, but for shorter periods in the case of special classes of employees, particularly the men employed only in winter. Such a restriction is not however im- posed, in practice, by the Rugby Gas Company, and is not provided for by the rules of the Watford Gas and Coke Company, the Epsom and Ewell Gas Company, the Plymouth and Stonehouse Gas Light and Coke Company, or the Aldershot Gas, Water and District Lighting Company. The Chester United, Wrex- ham, and Dartford Gas Companies require that their employees, in order to be allowed to sign agreements, shall be members of Benefit Societies. The Gloucester Gas Light Company excludes from participation employees whose salaries exceed £200 per annum. Determination of Amount of Bonus.—In nearly all cases the rate of the bonus, as with the South Metropolitan Gas Company, varies inversely with the price of gas, and is not contingent upon any other factor. But in two cases (Epsom and Ewell Gas Com- pany and the Watford Gas and Coke Company) the bonus takes the form of an addition to wages varying also with the amount of deposits with the Company made by the employee. The scheme of the Epsom and Ewell Gas Company provides that each profit-sharing employee shall pay to a fund created under the scheme Is. or 6d. a week, to which the Company adds an amount varying with the price of gas; thus, if the price of gas is 3s. Id. per 1,000 cubic feet, the bonus addition is at the rate of Is. or 6d. a week (i.e., an amount equal to the employee’s own payment); if the price falls to 3s. 6d., then the bonus addi- tion rises to Is. Ofd. in the case of a man contributing to the fund Is. a week, or half that sum in the case of a man con- tributing 6d.; and so on up to a maximum of Is. 6d. (or 9d., as the case may be) when the price of gas falls to 2s. lid. A scheme on generally similar lines is in force with the Wat- ford Gas and Coke Company. Investment of Bonus.—While the rules of a large number of Gas Companies* provide, like those of the South Metropolitan Company, that one-half of each bonus shall always be invested in the Company’s stock, under the schemes in force with the * South Suburban Gras Company, Chester United Gas Company, Commercial Gas Company, Leamington Priors Gas Company, Tottenham and Edmonton Gas Light and Coke Company, Gloucester Gas Light Company, Grantham Gas Company, Longwood Gas Company, Liverpool United Gas Light Company, and the City of Waterford Gas Company. DETAILED ACCOUNT OF VARIOUS SCHEMES. 63 Tunbridge Wells Gas Company, tlie Wrexham Gas Company, and the Merthyr Tydfil Gas Company, the employees are required to leave the whole of their first five annual bonuses to be invested in the Company’s stock: the Dartford Gas Company requires the first two bonuses to be thus invested. The employees of a large number of Gas Companies* have to leave for investment the whole of their bonus until the employee holds a specified amount of stock or shares. Under the schemes in force with the Walker and Wallsend Union Gas Company, the Watford Gas and Coke Company, the Wandsworth and Putney Gaslight and Coke Com- pany, the Epsom and Ewell Gas Company, and the Harrow and Stanmore Gas Company, the whole of the bonus is always to be invested in stock or shares of the Company. Provisions as to withdrawable Bonus.—So far as concerns the part (if any) of the bonus which is not required to be invested in stock or shares of the Company, this money, usually one-half, is either (a) paid out in cash, as in the cases of the Rugby Gas Company, the Wellingborough Gas Company, and the Hartford Gas Company; or (b) is deposited with the Company: in the latter case it is withdrawable, in many casesf at short notice, but in some cases* (as with the South Metropolitan Gas Company) only under special circumstances or for special purposes. The interest which has been acquired in the capital of these profit-sharing Gas Companies by their employees amounts in the aggregate to a very considerable sum; for they own stock or shares (ordinary) to the total nominal value of £459,581, while the market value at present prices is considerably in excess of that amount; they also own preference stock to the total nominal value of £110, and debenture stock to the total nominal amount of £627; while they have, on deposit with their respective employers sums amounting in the aggregate to £142,134. With respect to the share possessed by these employees in the control of the affairs of the Companies by which they are employed, it must be remembered that in most cases sufficient * Cambridge University and Town Gas Light Company (£20); Bournemouth Gas and Water Company, Rugby Gas Company, Cardiff Gas Light and Coke Company, and Hertford Gas Light Company (£10) ; Croydon Gas Company, Gas Light and Coke Company, Wellingborough Gas Light Company, Ilford Gas Company, Weston-super-Mare Gas Light Company, Aldershot Gas, Water and District Lighting Company, Plymouth and Stonehouse Gas Light and Coke Company, and Enfield Gas Company (£5). f South Suburban Gas Company, Chester United Gas Company, Bourne- mouth Gas and Water Company, Tunbridge Wells Gas Company, Rugby Gas Company, Gas Light and Coke Company, Wrexham Gas Company, Grantham Gas Company, Wellingborough Gas Light Company, Dartford Gas Company, Longwood Gas Company, Liverpool United Gas Light Company, Merthyr Tydfil Gas Company, Hertford Gas Light Company ; Leamington Priors Gas Company, Gloucester Gas Light Company, Cambridge University and Town Gas Light Company, City of Waterford Gas Company, Tottenham and Edmonton Gas Tight and Coke Company, Croydon Gas Company, Weston-super-Mare Gas Light Company, Plymouth and Stonehouse Gas Light and Coke Company, Enfield Gas Company ; in the last nine cases withdrawal is discouraged by the statement that regular withdrawal will debar an employee from future participation, or ®ay lead to the abandonment of the scheme. * Commercial Gas Company, Cardiff Gas Light and Coke Company, Ilford Gas Company, Wandsworth and Putney Gaslight and Coke Company, Aldershot Gas, Water and District Lighting Company. 64 II.—PRIVATE FIRMS AND COMPANIES. time has not elapsed to enable them to acquire enough stock or shares to entitle them to more than a quite insignificant voting strength. The proportion of the total number of possible votes at a general meeting of the Company which could be given by its workpeople is estimated at more than 1 per cent, in six cases only (Leamington Priors Gas Company, 1'7 per cent; South Metropolitan Gas Company and Cardiff Gas Light and Coke Com- pany, 2 per cent.; Chester United Gas Company, 2 8 per cent.; South Suburban Gas Company, 2'9 per cent.; Grantham Gas Company, 5 per cent.). In two cases only are the employees of these Companies repre- sented on the Board of Directors, the South Metropolitan Gas Company (as mentioned above) having three employee-directors and the South Suburban Gas Company two. But in every case there exists in connection with the profit-sharing scheme a Joint Committee of employers and employed, with functions generally similar to those of the Co-partnership Committee of the South Metropolitan Gas Company described on p. 59. Shares issued to Employees below Market Value. In May, 1886, Messrs. Hazell, Watson & Viney, Limited, printers and bookbinders, of London and Aylesbury, a firm now employing about 1,400 persons, brought forward a scheme of Profit-sharing under which they proposed to allot by way of bonus to all persons who had been employed by them for more than three years one- half of any profits that might be made over 10 per cent. One-half of the bonus was to be paid in cash in pro- portion to wages earned, the other half being added to a Provident Fund to which the employees pay weekly contribu- tions, which have been supplemented by large donations from the Company. This Fund provides sums payable at death, and grants during exceptional illness or calamity, and a limited number (at present 20) of pensions of 10s. a week to members over 60 years of age. The interest of an employee in the Provident Fund cannot be assigned or taken by creditors. Provision is made for enabling an employee who leaves the firm to receive two-thirds of his subscriptions to this Fund without interest. The amounts which accrued to the employees under this profit-sharing scheme, taking the bonus paid in the years 1887-93 inclusive, were equiva- lent to an average addition to the wages of participants of 0'8 per cent. In 1890 the firm made an arrangement by which employees were allowed to buy £10 shares in the Company at about three- quarters of their market value by weekly instalments of Is. each. The employee at once received the full dividend, and if he died before all the instalments were paid, his representatives took the share without further charge as fully paid-up. The profit-sharing scheme (apart from the arrangements for the purchase of shares by employees) was discontinued in 1895, on the ground, as stated by the Company, that the profits had not for some time allowed the payment of bonus. But the share- purchase arrangements have been continued, under terms varying from time to time but speaking generally of a similar character to those above described; and in all cases the shares have been DETAILED ACCOUNT OF VARIOUS SCHEMES. 65 allotted to the employees at about three-fourths of their market value. Under the last of these share-purchase schemes (which came into operation in 1907) it is provided that “ in order to “ ensure that the shares shall he held hy those employed in the “business” the following restrictions shall he imposed as to the re-sale of them. “ (9) Shareholders leaving the Company when under 50 years of age.— Any Shareholder who leaves the Company from any cause whatever before reaching the age of 50 shall be bound to offer his (or her) Shares for re-sale at the price paid for them (i.e., £10 each) to some other employee of the Company. If any descendant of the Shareholder so leaving shall be in the employment of the Company the Shares may be transferred to him. If the Shareholder has no descendant in the employ of the Company, then he shall give the Directors notice of his intention to sell his Shares. ' It shall be the duty of the Directors to find an employee or some other person to purchase the Shares at £10 each. If the Directors fail to find a purchaser in one month from the date of such notice, then the Shareholder shall be at liberty to retain his Shares or to sell them in the open market at the best price obtainable. The same conditions shall apply to any Shareholder who wishes to sell these Shares while remaining in the Company’s employment. (10) Shareholders leaving the Company when over 50 years of age.— Shareholders who have attained the age of 50 before leaving the Company’s employment shall have the privilege of retaining possession of their Shares for life, and after their death clause 12 shall apply. (11) Shareholders dying before all instalments are paid.—If the pur- chaser dies after he has paid his first instalment and before his purchase is completed, all further liability as to instalments on his Shares shall cease, and the Shares become the property of his heirs, to be dealt with in exactly the same way as Shares of Shareholders dying after paying all their instalments, and in the same manner as described in the next paragraph. (12) Shareholders dying aft'er paying all their instalments..Upon the Shareholder’s death, at any age, the Shares may be held by his widow if she so desire, during her lifetime. At her death the Shares must be transferred, as described in paragraph 9.” It is also provided that not more than five shares shall be allotted to any one employee on the special terms described above, and that in allotting such shares “ preference will he given to “ those who have been longest in the Company’s employ, and to “ any who may have bought shares at a higher price ” (than £10 each). The total number of £10 shares (fully paid) now held by 207 of the Company’s employees is 1,219. These shares, it should be understood, entitle the holders to the ordinary voting rights; and the proportion borne by the votes of these employees to the total of all the votes that could be given at a general meeting is approximately 4‘9 per cent. The Company's employees are allowed to deposit their savings with the firm at 4 per cent, per annum (free of income tax), these deposits being secured by £14,500 4 per cent, first Mortgage Debentures of the Company, the market value of which is par. The present number of depositors is 1,135, and the total amount on deposit £13,324. The Provident Fund (referred to above) possessed at June 30, 1911, a capital of £13,920, and had a membership of 608. This Fund is invested mainly outside the Company, but there are held on its account 237 £10 5 per cent. Cumulative Preference Shares 24548 E 66 II.—PRIVATE FIRMS AND COMPANIES. of the Company, 14 of the Company’s 4 per cent. Mortgage Deben- tures, and 30 of its ordinary shares, besides £149 on deposit with the Company. Any member of the Provident Fund who is mating an effort to save, and who sees that a loan of a moderate amount will help him in this direction, is eligible for a loan from the Company, to be repaid by instalments spread over several years, with interest at £4 per cent, per annum. Loans are granted upon condition that they are used for some purpose of thrift, such as buying a house, buying shares in the Company, or in some way increasing the applicant’s capital. To qualify for a loan, borrowers must be able to produce evidence of having already made some savings, and they must be able to give reason- able security, which, however, involves the borrower in no legal costs. By adding to the loan a sum equal to the insurance risk the borrower is able to secure that in the event of his death while the loan is running his representatives have nothing to pay, and the house, or whatever property the loan has purchased, becomes theirs free of further charge. Sixty-four loans have been made, amounting to £13,472, of which £9,327 has been repaid. The borrower can repay at any time, but the Company cannot call in the loan before the termination of the agreed period, even if the borrower leaves the Company’s service. In addition to the Provident Fund there is also a Pension Fund, which was established in 1910 with the view of enabling members of the office and administrative staff with earnings of at least 40s. a week (25s. in the case of women) to make substantial savings on their own account. The money paid in by the members, who were 43 in number at December 31, 1911, accumu- lates at 4 per cent, compound interest; and each year the Com- pany pays into the Fund a sum sufficient to provide a 50 per cent, bonus on the members’ savings. Of the £1,604 to the credit of this Fund on December 31, 1911, the greater part was invested outside the firm’s business. The Company has for the first seven years of the Fund’s existence guaranteed that the capital will earn 4 per cent, compound interest. Although Profit-sharing in the form of the appropriation for the purpose of paying a bonus to the employees of a fixed pro- portion of the profits of the business has not been in operation since 1895, the Company states that, “ there are about 350 of our “ employees who receive bonuses by way of additions to their “ salaries or wages, either weekly, yearly or at other intervals. “ Further, the Company contribute a large sum annually in various “ ways for the advantage of the whole staff. These bonuses and “ contributions amount to about £7,000 annually, being approxi- “ mately 6| per cent, on the total of the salaries and wages paid.” With respect to the results obtained by the arrangements above described, the Company state:—“ Our experience is that “ the various efforts we have made for the betterment of our staff ‘‘t are thoroughly appreciated by them. These efforts have apparently increased the previous good feeling between our- “ selves and our employees, and they have tended to greater (c e®°le^lc3r on the part of the employees. The capital owned by “ them in connection with these schemes is about £55,000; their private savings outside the Company are of course unknown.” OPINIONS OF EMPLOYERS. 67 D.—OPINIONS OF EMPLOYEES AS TO EESULTS OBTAINED BY PEOEIT-SHABING AND CO- PABTNERSHIP. One principal object of the present inquiry was to ascertain the opinions of employers who still have in force systems of Profit-sharing and Co-partnership as to the results produced by the adoption of systems of this nature.* For this purpose a series of questions was addressed to the employers ashing whether the adoption of Profit-sharing' (or Co-partnership) had proved satisfactory, whether the system had caused an increase of zeal on the part of the employees, and whether it had tended to promote harmonious relations between employers and employed. Considerations of space make it impracticable to set out verbatim the replies which have been received, and it has seemed best to adopt this course in relation only to those firms whose experience of the systems in question dates back to 1902 or to an earlier year; while the opinions expressed by the firms whose experience of Profit-sharing and Co-partnership is shorter are briefly stated in summary form. The number of firms still practising Profit-sharing which adopted the system prior to 1903 is 60, of which number nine sent no reply to the question set forth above; while the opinions of eight others (Messrs. Fox Bros. & Co., Ltd., see pp. 39 and 40; Messrs. Blundell, Spence & Co., Ltd., see pp. 28 and 29; Messrs. Hazell, Watson & Viney, Ltd., see pp. 64-66; Lady Wantage, see pp. 27 and 28; The Hele Paper Co., Ltd., see p. 38; The South Metropolitan Gas Co., see pp. 54-61; Messrs. Clarke, Nickolls & Coombs, Ltd., see pp. 36-38; and Messrs. Foster, Sons & Co., Ltd., see pp. 49-52) have been set forth in the detailed account of schemes of various types contained in previous pages. The opinions expressed by the remaining 43 firms referred to are printed below, the trade (where practicable) being shown in each case. Particulars of the manner of treating bonus in each case will be found on pp. 95-10.1 under the corresponding name or initials. “ ,1. J.” writes: — “ We believe that, generally speaking, Profit-sharing has proved a “ useful stimulus. Our work is of such a nature that we cannot “ point to definite tangible results, but we do certainly believe that “ the adoption of our Bonus System has proved satisfactory. We “ certainly believe it has tended to promote harmony between Em- “ ployers and employed, although our relations with our Employees * In the] case of schemes which have been discontinued, the causes of abandonment hrefsummarised on p. 114. 24548 E 2 68 II.—PRIVATE FIRMS AND COMPANIES. “ have been so uniformly harmonious that the sharing of profits has “ only increased the good feeling, not created it. In a number of “ cases extra zeal has no doubt been exhibited, but this applies more “ particularly to men who are generally zealous. Every two or three “ years a meeting of the workmen takes place at which the meaning “ of our profit-sharing is explained, and all are exhorted to do their “ best for us and for themselves. Good points are extolled and “ cautions given against failings. The last and most important “ departure, now in its thirteenth year, has been the giving our “ workmen a summer holiday, the period varying with length of “ service. We pay the usual rate of wages for the days allowed as “ holiday and make a contribution towards the cost, provided the “ holiday is spent at least 8 miles from-------Slipper baths with “ hot and cold water, dining rooms with hot water and facilities for “ cooking and supplying meals are provided on the premises.” “ R. P.,” bookbinders and stationery manufacturers, write : — “ Satisfactory. We believe that the principle of giving the em- “ ployees an interest in the business (beyond their weekly wages) is “ a right one and we find that it tends to harmonious working. We “ have had no dispute or strike since this scheme was begun and we “ have been considering an enlarged scheme.” Mr. E. 0. Greening', of the Agricultural and Horticultural Association, Ltd., writes: — “ The adoption of Co-partnership in our case has proved quite “ satisfactory. I believe it has been helpful in enabling us to steer “ our Association safely through serious difficulties and to restore it, “ after great losses, to prosperity. It has saved us from strikes and “ conflicts when adverse circumstances have stopped usual rises in “ salaries and even compelled reductions in salaries and wages. It has “ kept our people loyal under a prolonged depression.” The Women’s Printing Society writes : — “ The result of Profit-sharing has been entirely satisfactory in the “ case of our Society. The relations with the workers are harmonious, “ and the latter, regarding the business in a sense their own, are keen “ to make it pay.” The Secretary of the Tollesbury and Mersea (Blackwater) Oyster Fishery Co., Ltd., writes : — “ My personal opinion is that our Co-partnership system cannot be “ termed satisfactory, as the dredgermen have control of the situation. “ The Board consists of twelve Directors, six being supposed to “ represent the ‘ A ’ shareholders or capitalists, and six to represent “ the ‘ B ’ shareholders or dredgermen. The latter, however, have “ secured a majority on the Board and are able, at times, to dictate “ their views as to what work shall be done and, consequently, what “ amount shall be spent on wages, whereas from the financial stand- “ point and profitable working of the Company it would perhaps be “ more beneficial for such work to be left undone, having regard to “ the heavy proportion the wages bear to the other expenditure of “ the Company.” Messrs. Cassell & Co., Ltd., printers, publishers, etc., write : — “ The Company’s Provident and other Funds no doubt tend to pro- “ mote harmonious relations between the employees and the “ Company.” Messrs. Fidler & Sons, seedsmen, farmers, etc., write : — “ The system of Profit-sharing has tended to promote harmonious “ relations between employers and employed, and also created greater “ desire on the part of those employed to watch over the interests of “ the firm.” OPINIONS OP EMPLOYEES. 69 Messrs. J. II. Ladyman & Co., grocers, write : — “We are still of the opinion that our system of profit-sharing is “ beneficial by creating a greater interest in the welfare of the “ business.” The Birmingham Dairy Co., Ltd., writes : — “ Profit-sharing is considered on the whole to have proved satisfac- “ tory. At the same time, the Bonus given is rather regarded as part “ of regular wages than as an incentive to extra zeal. “ This Company have up to the present time been able to satisfy “ their employees as regards remuneration and have not therefore “ been troubled with strikes or collective disputes.” “ C. C.” writes: — “ Our senior assistants and warehouseman and our travellers (most “ of whom have been a long time with us) make the interests of the “ business their own. Our relations with the whole staff are very “ pleasant ones. “ A. B.” writes : — “ We consider that our system of deposits promotes interest in the “ business and good feeling so far as it extends.” Messrs, Robinson Bros., Ltd., tar distillers, write : — “No results observed.” “ C. D.” writes: — “ Usual harmonious relations between employers and employed.” Messrs. John Rowntree & Sons, grocers, restaurant proprietors, etc., write :■— “ The amount of Bonus for the last two or three years has been so “ small that we do not think it has exercised any appreciable effect “ upon the employees. We believe, however, that the scheme is “ appreciated by them, and that its general effect is to call forth “ extra zeal, and to promote harmonious relationships between “ employers and employed. We are glad to say, however, that these “ have always been good in our business.” “ D. D.,” corn, seed, etc. merchants, write: — “ Trade Union regulations and practices causing some disturbance, “ which is likely to cause withdrawal of profit-sharing.” “ M. M.,” flour millers, write : — “ We consider the result has been satisfactory. The Bonuses have “ been valued and appreciated, a good feeling has existed and har- “ monious relations maintained and possibly difficulties have been “ avoided because the men know we study their interests.” Messrs. Stainsby & Lyon, Ltd., tar distillers, write: — “ There have been no strikes or labour disputes for the past 35 years, “ and it is thought that the profit-sharing scheme does encourage “ employees to work with greater zeal, and that it tends to promote “ harmonious relations between employer and employed.” The Yice-President of the Valvoline Oil Co. (Successors to Boult Bros. & Co.) writes: — “ The scheme..............• • :............................... “ has been of advantage in encouraging careful work and stimulating “ exertions.” Messrs. Thomas Brakell, Ltd., printers, write: — “ We find our system of Bonus quite satisfactory.” 70 II.—PRIVATE FIRMS AND COMPANIES. “ L. M.” writes : — “ Quite satisfactory. There is not the slightest doubt that it “ ‘ promotes harmonious relations between employers and employed “ ‘ and avoids strikes and disputes.’ We have never had any trouble “ with our men since we adopted it. The most important thing is “ that it does away with the perpetual arguing with employees as to “ their remuneration. They know that if business is good their “ salaries rise automatically.” Messrs. John Sadd & Sons, Ltd., timber merchants, write: — “Not altogether satisfactory; in some instances it answers well, but “ it has not brought out any extra effort amongst some of the men; “ but on the whole it tends to promote harmonious relations between “ employers and employed.” The South Suburban Gas Co. refer to a speech by Mr. Charles Hunt, Chairman of the Company, at the Ordinary Half-Yearly General Meeting' of the Company held on February 2, .1912, in which he said : — “ . . . . having regard to the labour unrest in other industries of “ which so much had lately been heard, it was with much satisfaction “ that the Directors were able to report the continued smooth working “ of the Co-partnership system, one of the good effects of which had “ been to increase in a marked degree the intelligent interest on the “ part of the employees of all grades in the success of the Company’s “ operations. The spirit of Co-partnership was, in fact, manifest in “ the accounts before the proprietors. Sir George Livesey was always “ of the opinion that considerable monetary value attached to the “ goodwill of employees; and this value was now being reaped in the “ shape of better carbonizing results, reduction of working costs, and “ zealous attention to the requirements of consumers. In return, the “ employees derived substantial benefit from the annual Bonus to “ which they were entitled under the scheme.” Messrs. H. Ballantyne & Co., woollen manufacturers, write : — “ After nearly 20 years’ experience we have no hesitation in saying “ that our system of Profit-sharing does ‘ call forth extra zeal.’ It is, “ of course, impossible to say how far this goes in recouping us for the “ amount paid in Bonus, but we have no doubt that it does so to a “ considerable extent. It has certainly helped to promote the most “ harmonious relations between us and our employees. The best “ evidence we can give of our belief in its success is our recent decision “ to extend the scheme to all workers in our employment, whether in “ our Innerleithen works or elsewhere.” Messrs. Carr, Lomas & Co., Ltd., mantle manufacturers, write : — “ Partial success only. It has given the Directors the opportunity “ to encourage merit—doubtful if it has conduced to harmonious “ relations as a rule, but the gift of Bonus has generally been “ appreciated.” Messrs. G. W. Chitty & Co., Ltd., flour millers, write: — “We still continue to be quite satisfied with the results of our “ Profit-sharing scheme and have nothing to add to earlier reports.” Messrs. T. Chalmers & Sons, Ltd., paper makers, write : — “ The system continues to work satisfactorily and to our mutual “ advantage.” <£ P. Y.” writes: — “ Certainly. We are satisfied that our system has been an all round “ benefit. J OPINIONS OF EMPLOYERS. 71 “ We cannot say that extra zeal on the part of the rank and file is very evident, hut the more intelligent the worker the more highly “ he or she appreciates the system. “ During its operation we have apportioned nearly £100,000 as the u workers’ share of our profits. Undoubtedly a part of this is the result of the increased interest of our workers, but to what extent “it is impossible to say, certainly not all. We have never advocated “ the system as enabling an employer to make more money for himself, “ but as a benefit mainly to the workers, without too great cost to the “ employer. “ While there can be no guarantee of industrial peace, the com- “ munity of interests fostered by the system undoubtedly promotes “ harmonious relations between employer and employed and thus “ reduces the risk of labour disputes to a minimum.” “ K. K.” writes : — “We have every reason to be satisfied with the working of the “ scheme. There is a general good tone amongst our people and a “ keen interest in the prosperity of the Company, particularly on the “ part of old servants. It is impossible to estimate the money effect “ on the Company, but our feeling is that we lose nothing and probably “ gain something by the scheme. We attach much importance to the “ fact that no one has ever been promised anything in the way of “ Bonus; it has come as an agreeable surprise and as a gift. We keep “ the Bonus as private as ppssible both as regards the names of the “ participants and the amounts of Bonus and the method of “ calculation.” Mr. Tom Morley, printer, writes; — “ My opinion is that after receiving the Bonus a few times, it is “ taken as being part of the wages and does not make much difference, “ except in isolated cases, but 1 think it helps to make things run a “ little smoother.” Messrs. Humphries & Bobbett, corn millers, write : — “ We have had no friction with our men at all.” Messrs. Hollason & Jones, brace, belt, and garter web manu- facturers, write : — “ In our opinion profit-sharing has been satisfactory to a certain “ extent. We consider that the nature of the scheme, which is only a “ partial one, prevents it being as satisfactory as it might be. We “ think that to be perfectly satisfactory the amount given as Bonus, “ or at least a part of it, should be left in as capital and a dividend “ paid on this capital, at the same rate as the ordinary capital of the “ firm or Company. We think that arrangements of this kind do tend “ to promote harmonious relations between employer and employed, “ but it is impossible to say to what extent. Speaking for ourselves, “ there have been no strikes or serious disputes here.” Messrs. Wyles Bros., Ltd., wholesale boot and shoe merchants, write: — “ Our experience of Profit-sharing amongst the general employees is, “ that it is very much appreciated by all concerned and with us has “ been very successful. The best of feeling prevails amongst the “ employees, and labour disputes are unknown to us. Several of our “ employees have been with the firm between 20 and 30 years. “ The prospect of receiving a Bonus at the end of the year “ undoubtedly calls forth extra zeal on the part of the employees, who “ are aware this payment annually is quite optional on the part of “ Directors and is subject to satisfactory trading results.” Mr. Daniel Cameron, of Messrs. D. Cameron & Son, builders, writes: — “ The giving a Bonus certainly promoted zeal and greater interest. “ But with some natures it promotes arrogance and a sense of over- “ importance and sometimes cheekiness. But to the prudent and “ discreet it makes better servants throughout and prevents the incli- “ nation to strike and causes those who are getting a Bonus to sever 72 II.—PRIVATE FIRMS AND COMPANIES. “ their connection with all trade unions which is a great benefit to the “ employer. I was on the Executive Council of the Plumbers’ Trade “ of the United Kingdom, and was sent to Manchester and Sheffield to “ settle strikes in those cities and settled them on the mutual conces- “ sion principle to the satisfaction of employer and employed. But I “ learned by experience that the best thing to prevent strikes was the “ Bonus system when the workers were steadily employed from year’s “ end to year’s end.” Messrs. Spillers & Bakers, Ltd., millers, biscuit manufacturers, etc., write : — “ The system has not been found to call forth extra zeal on the part “ of the employees. Although the recent critical labour conditions “ have somewhat severely tested harmonious relations between “ employer and employed, we are inclined to think that had we not “ had this profit-sharing arrangement matters would have been worse “with us; it certainly cannot be pronounced a ‘cure,’ but it might “ possibly become such if it had not so strongly aroused the resentment “ of the more advanced labour leaders.” Messrs. John Stow, Ltd., cabinet makers and upholsterers, state that the system has probably called forth extra zeal on the part of the employees, and add : — “ Our men are non-unionists, and we reciprocate by abstaining from “ joining the Employers’ Federation, although it is not a condition “ on either side, and we often employ unionists when we want “ additional hands. “ We pay the union rate of wages. “ 11) _pase of a general strike our men would not cease working, “ and in case of a general lock-out we should still continue “ working, . . . .” The Secretary and General Manager of the Chester United Gas Co. writes: — “ Yes. The scheme has been in operation 10 years, and it is esti- “ mated that the amount awarded as Bonus has not exceeded one-half “ of the amount realized by the Company by the additional interest “ taken by the employees generally in the Company’s prosperity. “ Personally, I think success is dependent upon the interest taken in “ the scheme by the most responsible officials and by checking any “ tendency to withdraw Bonuses unnecessarily.” Sir Herewald Wake, Bart., farming, writes: — “ Most satisfactory. On the few occasions any profit has been made, “ all the hands were much pleased and appeared stimulated in their “ work. “ The more intelligent men are not discouraged by a bad year like “ 1910-1911. “ My relations with my employees have always been most har- “ monious, our mutual object being to make all the land I work, “ 1,130 acres, as productive as possible.” The Engineer and General Manager of the Commercial Gas Co. writes: — “ The adoption of Profit-sharing has, in my opinion, proved entirely “ satisfactory. The system which has been in vogue in this Company “ for a period of nearly 10 years has undoubtedly had the effect of “ interesting the employees in the Company’s undertaking. “ In regard to the latter part of your enquiry, I have to say that, “ during the recent labour troubles, it was undoubtedly largely due “ to the influence of Profit-sharing that the Company’s employees “ loyally observed their duties, although I have good reason to believe “ that attempts from outside have been made to counteract its “ influence and undermine the loyalty of the employees to the Com- “ pany, attempts which, I am happy to say, have been unsuccessful. “ In conclusion, I feel that I cannot speak too highly of the merits “ of the Profit-sharing system. It has been a boon to the needy and “ a guarantee of fidelity.” OPINIONS OB' EMPLOYERS. 73 Messrs. Morris & Bolton, Ltd., printing ink manufacturers, write: — “ Satisfactory in every respect; it induces extra zeal on the part of “ those who hold shares and is an incentive to the others.” “ B. B.” writes : — “ Our scheme of Profit-sharing has proved satisfactory. Its object “ was to bind to us zealous and efficient employees, and to stimulate “ these qualities of zeal and efficiency, encouraging the desire to save “ waste of time or material, and the feeling that each member was “ benefiting directly by so doing. We have had our disappointments, “ but firmly believe in the principle of profit-sharing, and are satisfied “ with the general result in our case. Our business is one not liable to “ be affected by direct strikes or labour disputes—we are hard hit by “ those recent strikes, but our own employees are not liable to be “ affected by such a spirit. Our object has been to benefit our most “ deserving or promising employees, and make them settle down “ with us.” Messrs. H. Backhouse & Co., Ltd., grocers, chemists, etc., write; — “ After an experience of nine years we have no hesitation in saying “ our simple profit-sharing scheme has proved satisfactory and we “ would not return to the old system. “ Our business has grown steadily during this period, and although “ we had strikes all round us during the past year we never had any “ complaint from our men. We are strongly of opinion that Co- “ partnership of some kind is the only way to combat labour troubles.” Messrs. James Cropper & Co., Ltd., paper makers, write : — “ Profit-sharing—in some departments—was discontinued by us two “ years ago. “ We found that it did not 1 call forth extra zeal,’ owing to the “ half-yearly distribution of profits—the result of endeavour was not “ felt soon enough. Also, so many other factors outside the workers’ “ control either make or mar profits. “ As the output was decreasing, we adopted piecework, which has “ resulted in an ever increasing output.” “ L. R.” writes : — “ The adoption of this profit-sharing has proved very satisfactory. “ It has undoubtedly called forth extra zeal on the part of the 11 employees, and the payments they receive at the end of each year “ are highly appreciated, although obviously they vary from year to “ year. Care had to be taken, however, that the quality of the work “ was not depreciated. We have certainly found that these arrange- “ ments tend to promote harmonious relationship between the “ employees and ourselves.” Coming now to the more recent cases—those in which Profit- sharing or Co-partnership has been adopted since 1902—we find that out of the total of 73 cases the duration of Profit-sharing has been nine years in 4 cases, eight years in 3 cases, seven years in 4 cases, sis years in 4 cases, five years in 6 cases, four years in 17 cases, three years in 14 cases, and less than three years in 21 cases. In a considerable number of cases* either no answer at all was given to the Department’s question as to the results obtained by Profit-sharing and Co-partnership, or it was expressly stated that the experience of the firm had been too limited to enable them usefully to reply on this head. With respect to the remaining * Nos. 64, 72, 78, 80, 107, 108, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133. 74 II.—PRIVATE FIRMS AND COMPANIES. 53 cases, in only two instances (Nos. 61 and 71) is it stated that the results hoped for were not obtained, while in five others (Nos. 62, 66, 69, 79, and 111) it is observed that the results were on the whole satisfactory, but that the good influence of the methods adopted did not extend to the whole of the employees— a more or less considerable proportion of whom remained un- responsive. In three cases (Nos. 87, 104, and 106) the employers express only a moderate degree of satisfaction with the results obtained, but in the great majority of instances* their satisfaction with the effect produced by the adoption of Profit-sharing and Co-partner- ship is entirely unqualified, and in some of these cases they ex- press a very high degree of appreciation. As examples showing the terms in which this appreciation is expressed, may be quoted the replies of three of these firmst: — “ 0. N.,” worsted and cotton manufacturers, write: — “ 1st. Simply as a money making plan we should not say that tlio “ scheme has paid us, but this was not the chief reason for its intro- “ duction. “ 2nd. We think our workers put forth extra zeal and are more “ interested in their work and the place generally and more anxious “to do good work. “ 3rd. Yes, we think there is no question that the plan has tended “ to promote harmonious relations between ourselves and our work- “ people. We have never had any strikes or lock-outs either before or “ since we started profit-sharing, but the last few years have been “ exceptional. We have had a six weeks’ strike in our nearest “ town, three miles away, but there was no suggestion of unrest among “ our people. We think there is not much of the suspicion and “ distrust between ourselves and our workers that seems to prevail, and “ that the interests of Capital and Labour are not antagonistic but “ have much in common.” The Prudential Assurance Company, Limited, writes: — “ The Profit-sharing scheme has proved eminently satisfactory and “ has been greatly appreciated by the staff. “ The Company has never been troubled by strikes, and it is doubtful “ whether any other similar large body of men (over 20,000) could be “ found to show the same consistent degree of loyalty. “ The Profit-sharing scheme -was not needed for the purpose of main- “ taining the general loyalty and zeal, but at the same time, the “ annual distribution of a share of the profits undoubtedly enables the “ Company to show its appreciation of the untiring efforts of a hard- “ working staff which they are anxious to suitably reward.” The General Manager of the Bournemouth Gas and Water Com- pany writes: — “ We are thoroughly satisfied with the operation of the scheme, and “ I am fully satisfied from the obvious interest taken in their work “ by the employees generally and by practical instances that it would “ not be wise to mention in detail, that the result of the scheme is to “ create and cement conditions of mutual interest, cordiality, and “ goodwill which cannot be obtained by any other existing system with “ which I am acquainted.” * Nos. 63, 65, 67, 68, 70, 73, 74, 75, 76, 77, 81, 82, 83, 84, 85, 86, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 105, 109, 110, 112, 113, 114, 115, 116,117,118,119. ’’’’’’’’ t See also the opinions expressed by Firm No. 65 (Messrs. John Knight, Limited), pp. 53 and 54, and by Firm No. 103 (Messrs. Lever Brothers, Limited), 75 III—PROFIT-SHARING AND CO-PARTNERSHIP IN CO-OPERATIVE SOCIETIES. Co-operative Societies may be divided into four main groups, viz. (i.) Industrial, (ii.) Agricultural, (iii.) Banking, Credit and Insurance, (iv.) Housing and Building Societies. The last two classes of Co-operative Societies, from tlie nature of the operations which they carry on, employ only a very small number of persons,* and since in regard to such organisations the ques- tion of Profit-sharing and Labour Co-partnership may be considered to possess relatively less importance, this part of the Report will be concerned exclusively with (a) Industrial and (b) Agricultural Co-operative Societies. Moreover, as the present Report is solely concerned with the relations between employers and workpeople, those classes of Co-operative Societies which employ a relatively in significant number of workpeople are not here considered. The extent to which the methods in question are in operation in the different types of associations of which these two groups are composed varies greatly; and for this reason each type will, in the account which follows, be treated separately. A.—INDUSTRIAL CO-OPERATIVE SOCIETIES. (1.) Associations or Consumers. («) Retail Distributive (Store) Societies. Profit-sharing with Employees. The number of the Co-operative Retail Distributive (Store) Societies at the end of 1910 was 1,421, of which only 195, or approximately one in seven, gave any share in profits to any of their employees. In regard to those Store Societies which have given a share in their profits to their employees, the addition * It should be explained that by “ Housing and Building Societies ” is meant Societies which provide houses or facilitate the acquirement of houses, but do not, as a rule, themselves carry out building operations. A full account of Co-operative Societies of all types will be found in the Report on Co-operative Societies, issued by the Department in 1912 [Cd. 6045] ; see also Board of Trade Labour Gazette, May, 1912, pp. 172, 173, and August, 1912, pp. 333, 334. 76 III.—CO-OPERATIVE SOCIETIES. made to the remuneration of the employees by the bonus on wages which they have received is shown in the Table below: —• Ratio of Bonus to Wages in Profit-sharing Retail Distributive (Store) Societies, 1899-1910. [Compiled from. Returns made to the Co-operative Union, to the Labour Department, and to the Chief Registrar of Friendly Societies.] Year. No. of Profit-sharing Employees at end of year. Patio of Bonus to Wages and Salaries. Distributive Departments. Productive Departments. Total. Distribu- tive De- partments Productive Depart- ments. Both De- partments together. 1899 12,101 1,075 13,176 Per cent. 6-1 Per cent. 6'7 Per cent. 6-2 1900 # # 12,018 * # 5-2 1901 10,282 1,903 12,185 5’3 4-9 5-3 1902 11,110 1,931 13,041 5-4 5-3 5-3 1903 11,756 2,314 14,070 5-4 5-0 5-4 1904 12,771 2,448 15,219 5-5 5-2 5-4 1905 14,132 2,465 16,597 5-3 5-1 5-2 1906 14,680 2,738 17,418 5-1 5-0 5-1 1907 15,006 2,736 17,742 5-1 5-1 5-1 1908 14,017 2,905 16,922 5-0 4-9 5-0 1909 13,958 2,792 16,750 4-6 4-6 4-6 1910 14,411 2,829 17,240 4-5 4-6 4-5 Note.—A Society is not included in the Tabic for any year in which it did not allot a sum to employees. * Cannot be stated. It will be seen that the ratio of bonus to wages in the distri- butive and productive departments of these Societies respectively has varied but slightly during the twelve years covered by the Table, having during the greater part of this period been a little over 5 per cent., though it has fallen below this figure in the last two years. Shareholding by Employees. The membership of Retail Distributive Societies, as of Co- operative Societies of every type, is invariably open, subject to election by the Committee of Management, so that there is no difficulty in the employees becoming shareholders, and it is believed that in most cases they do so. In regard to the extent of the control capable of being exercised by the employees at meetings of the shareholders, it must be borne in mind that the rule in these Societies is one member one vote, irrespective of the number of shares held by each. As to their direct influence upon the pro- ceedings of the Committee of Management, it may be stated that it is very unlikely that in any appreciable number of cases em- INDUSTRIAL : ASSOCIATIONS OF CONSUMERS. 77 ployees of a Store Society would be found to have seats on its Committee. (5) Wholesale Societies. Projit-sharing with Employees. The English Co-operative Wholesale Society, which at the end of 1910 employed 4,823 persons in its distributive and 13,053 in its manufacturing departments,* does not now share profits with its employees. On this Society deciding in 1873 to establish its own work- shops for production, the members, upon the recommendation of the Committee, adopted a scheme under which a bonus was to be paid to the employees based partly upon the profits made by the Society and partly upon an increase in sales. When the dividend upon purchases paid to members reached 2d. in the £, the employees were to receive a bonus of 2 per cent, upon their wages, and an additional \ per cent, for each increase of \d. in the £ in the dividend upon purchases, until the bonus upon wages reached a maximum of 4 per cent. In addition, when the sales of the Society for the year averaged £2 per quarter per head of the total membership of the shareholding societies, a further bonus of 1 per cent, upon wages was to be paid, with an additional | per cent, for each increase of 2s. 6d. per head in the average sales up to a maximum of 3 per cent, upon wages. This arrange- ment applied to all employees of the Society, whether engaged in its productive or its distributive departments. In 1876 the Committee of the Society reported that the bonus system had not given satisfaction, and recommended its discon- tinuance, this course being adopted at a general meeting of delegates by 150 votes to 78. In 1882 the Committee introduced into certain departments a system under which a bonus was to be paid based upon an increase in sales and a decrease in expenses, subject to a certain minimum of profit being shown on the working of the depart- ment. This was extended to a larger number of employees during 1885; but in 1886 the Committee again reported adversely upon the scheme, with the result that it was abandoned, and no further steps have been taken as regards Profit-sharing with employees. In 1907 a “ Thrift Fund ” was established by the Society for its employees. All the employees, distributive and pro- ductive, are eligible for membership on completion of six * The English Wholesale Society carries on the following industries— building, metal working, the manufacture of textiles, boots and shoes, and other clothing, printing and bookbinding, woodworking, furnishing and brush-making, the manufacture of soap, candles, starch, &c., flour milling, the manufacture of biscuits, sweets, preserves, pickles, and of other food, and of tobacco, as well as farming and dairying. 78 III.—CO-OPEKATIVE SOCIETIES. months’ continuous service. The objects of the fund are “ to make provision for the retirement of its members through old age, or incapacity caused by infirmity of body or mind, the encouragement of thrift, and the creation of a bond of interest between the Society and employees which shall be mutually advantageous.” Contribution to the fund by employees is, with certain exceptions, on a basis of 3| per cent, on fixed wages of over 40s. and 2£ per cent, on wages under 40s. The Society contributes to the fund on the basis of 2J per cent, on the wages of those members whd earn 30s. per week and under, and 1J per cent, on the wages of those earning over 30s. per week. The accounts of contributions are kept under separate heads and owned separately by the Society and the employees respectively, until such time as the benefits become withdrawable at the age of 60 years, or earlier under certain contingencies, or on termination of service. The management of the fund is in the hands of a committee of eleven, six directors of the Society and five elected employee members, who become trustees for the investment of the fund with the Society. At the end of 1910 the amount invested with the Society was £88,398. The Scottish Wholesale Society, which carries on similar under- takings to the English Society, and which employed 1,859 persons in its distributive and 5,752 persons in its productive departments at the end of 1910, adopted Profit-sharing in 1870. The scheme then adopted provided that its employees (all of whom were at that time employed in distribution) should receive a bonus on their wages at double the rate of dividend paid to members on purchases. In 1883 the Society commenced production, and in 1884 the old arrangement as to bonus was replaced by a new scheme which established a differential rate between workers in the distributive and in the productive departments. Under this, the distributive employees received a bonus at the same rate as the rate of dividend on members’ purchases; while the rate of bonus to productive workers was determined by the net aggregate profit made in the manufacturing departments only. This arrangement was again revised in 1892, when the Society decided to pay to all its employees, whether employed in its distributive or its productive departments, a bonus on wages at the same rate as the dividend on purchases paid to members : it was required, however, that one-half of each worker’s bonus should be retained and placed to his credit in a special fund called the Bonus Loan Fund, which receives interest at the rate of 3 per cent, per annum. Except with the consent of the Committee, deposits in this Fund are only withdrawable after the expiration of three months from the date of the employee leaving the service of the Society. Since the establishment of Profit-sharing with the employees, and up to the end of 19.10, a total sum of £197,071 had been allotted to the employees, of which £57,892 remained in the Bonus Loan Fund. INDUSTRIAL : ASSOCIATIONS OP CONSUMERS. 79 The amount of the addition to wages made by the profit-sharing Bonus received by the employees of the Scottish Wholesale Society in the years 1899-1910 was as shown below: — Ratio op Bonus to Wages in Scottish Co-operative Wholesale Society, 1899-1910. Year. Number of Employees sharing in Profits. Ratio of Bonus to Wages and Salaries. Year. Number of Employees sharing in Profits. Ratio of Bonus to Wages and Salaries. 1899 5,401 Per Cent. 3-3 1905 6,694 Per Cent 3-3 1900 6,091 3-3 1906 6,984 3-3 1901 6,192 3-3 1907 7,453 3-3 1902 6,403 33 1908 7,653 3-3 1903 6,786 3-3 1909 7,547 3-3 1904 ... • ... 6,562 3-3 1910 7,611 3-3 Shareholding by Employees. In the English Co-operative Wholesale Society membership is confined to Societies registered under the Industrial and Provident Societies Acts or the Companies Acts, so that it is not possible for any of its employees to hold shares. The Scottish Wholesale Society, in addition to admitting Societies to membership, has, since 1892, permitted its employees to become holders of from five to fifty shares of £1 each, and they are entitled to send one representative to the general meet- ings, with an additional representative for every 150 employees who become shareholders, each representative having one vote. No employee, however, can hold any office on the Committee or he an auditor of the Society. At the end of 1910, 561 of the em- ployees (out of a total of 7,611) were shareholders, holding 15,704 shares, upon which £13,945 was paid-up; and, in addition, £57,892 of the loan capital of the Society, representing the Bonus Loan Fund mentioned above, belonged to its employees, members and non-members together, the balance-sheets not showing separately the amount belonging to each class. The number of votes which the employees are entitled to give at meetings of shareholders through their delegates is at present four. (c) Productive Societies. The 39 Consumers’ Productive Societies in existence at the end of 1910 consisted of 5 corn-mills, 22 bread-baking Societies, and 12 miscellaneous Societies engaged in various industries, including building, printing, laundry work, dyeing and cleaning, and mineral water manufacture. Out of the 39 Societies com- prised in this group, three Societies only in 1910 allotted any share in their profits to their employees. The total number of employees who thus participated in profits was 1,312, and the 80 III.—CO-OPERATIVE SOCIETIES. bonus which they received mounted on the average to an addition to their wages of 7'6 per cent. By far the most important among these three profit-sharing Consumers’ Pro- ductive Societies is the United Baking Society of Glasgow, which is a federation of 178 Societies, and employs .1,255 persons. The amount of the bonus distributed in 1910 by this Society to its employees was equivalent to 8T per cent, on their wages and salaries for the year. The bonus received by the employees of the United Baking Society is invested in a “Bonus Investment Society” formed by them; this Society in turn invests the capital so raised in shares of the United Baking Society, and so acquires the right as a member to send delegates to the General Meetings of that Society. In this way the employees secure the power of voicing their opinions on the affairs of the Society by which they are employed, the number of the votes to which they are in this manner entitled being 25. For the most part, the amount of control exercised by the employees of the group of Societies now under consideration (the Consumers’ Productive Societies) whether as shareholders in the Societies by which they are employed or as Committee-men may be considered tol)e insignificant. (2) Productive Associations of Workers. Unlike the Societies dealt with in the previous section, which are formed and managed primarily in the interests of consumers, the productive associations of workers are formed and managed primarily in the interests of the persons employed. They are in the main an attempt by the workers in various industries to substitute for the ordinary conditions of employment by an individual capitalist or a Joint Stock Company a system under which the members of the Societies work in a factory or workshop either rented by, or belonging wholly or in part to themselves, under conditions of labour decided upon by the members, and carried out under the direction of a manager and committee elected by them, the profits of the undertaking being distributed as the members, in general meeting assembled, may decide. In 1910 there were at work 96 associations of this general character, of which 11 were in Ireland. With one exception (a bacon curing factory) these 11 Associations are of a somewhat different character from the English and Scottish Societies, being known as Home Industries Societies. Of the 10 Home Industries Societies two only in 1910 allotted out of their profits any sum (£7 and £3 respectively) as bonus on wages to their employees. It is believed that the number of employee-shareholders is not large, and that it is not at all common for employees to be members of the Committee of Management of these Societies. The remaining 86 Societies (which may conveniently be termed “ Productive Associations of Workers ”) are mostly in England, where 82 were at work: of the remainder, three were in Scotland and one (the bacon-curing factory above referred to) in Ireland. INDUSTRIAL : ASSOCIATIONS OF WORKERS. 81 Since it is this group of Co-operative Societies in which Profit- sharing and Co-partnership play the most prominent part, the leading facts in relation to them will he stated in somewhat greater detail. The nature of the industries in which the Societies comprised in this group are engaged, their Membership, Capital, Sales, and Profits or Losses are shown in the Table which follows: — Productive Associations of Workers—Summary by Industries, 1910. [ Compiled from Returns made to the Labour Department and to the Chief Registrar of Friendly Societies.] So- Membership. Capital. Industries. ties at end of Year In- divid- uals. So- cie- ties. Share. Loan. Re- serve and Insur- ance. Sales. Profit(+) or Loss( - )** Building No. £ £ £ £ £ 4 674 7 4,208 3,564 1,051 25,709 + 1,530 Quarrying 1 392 526 27,467 12,245 3.313 - 1,243 Metal, Engin- 12 923 190 19,195 8,526 10,130 64,972 + 4,038 eering, &c. Textile 13 5,881 1,317 140,337 116.719 27,191 471,252 + 21,070 Boot and Shoe 19 3,947 719 65.646 51,264 13,377 372,767 + 9,487 Other Clothing 4 1,652 538 36,889 26,166 5,288 178,477 + 14,173 Frinting and 19 2,666 457 57,295 34,101 16,899 150,805 + 11,150 allied trades. Woodworking and Furnish- 4 -236 95 11,049 30,398 3,282 30.391 + 534 in^. Food Prepara- 3 4,378 207 32,725 12,752 6,149 119,445 + 5,020 tion. Bassdressing, 2 109 1 414 182 1,515 5,022 + 313 Mat and Brushmaking. 1,452 + 26 Leather 2 34 1 344 42 118 Miscellaneous 3 139 15 695 350 18 2,578 + 41 Total 86 | 21,031 4,073 396,264 296,309 85,018 1,426,183 + 66,139 * The amounts in this column are the amounts of the profits (or losses) before dividend on the share capital has been paid. It will be seen that the industries in which this branch of co-operative production prevails to the greatest extent are the clothing and the textile trades, the printing and allied trades, the food preparation trades, and the metal and engineering trades. Profits and Profit-sharing. In these Societies the profits realised are devoted in the first instance to paying a fixed rate of interest (frequently 5 per cent.) on the shares; out of the balance sums are usually added to Reserve 24548 F 82 III.—CO-OPERATIVE SOCIETIES. Funds, including' Accident, Compensation, and Insurance Funds; a dividend on purchases is in many cases paid to the customers of the Society; capital in some cases gets a further share in profits over and above the fixed rate of interest; and a portion of the profits, varying in different cases, is usually allotted to the employees in the shape of a bonus upon the wages earned by them, this bonus being wholly or in part capitalised as shares in the Society, entitling the holders to participate in the manage- ment of the concern: in addition, in a considerable number of Societies, amounts are allotted out of profits to Provident Funds for the benefit of their employees. The goods produced by these Societies are in the main sold to Retail Distributive Societies, which frequently provide a considerable portion of the capital employed, and which share in the management by means of delegates elected to the management committees of the Societies. The number of the Workers’ Productive Societies which in the years 1899-1910 shared profits with their employees, the number of their employees participating in profits, the ratio of bonus to wages, and the amounts allotted out of profits to Provident Funds for the benefit of employees, are shown in the Table which follows: — Profit-sharing by Productive Associations of Workers, 1899-1910. [ Compiled from Returns made to the Co-operative TJnion, to the Labour Depart ment, and to the Chief Registrar of Friendly Societies.'] All Societies together. Societies which shared Profits with their Employees. Year. No. of So- cieties at end of Year. No. of Employees at end of Year. No. of Societies* which paid Bonus on Wages in Year. No. of Employees receiving Bonus on Wages in Year. Ratio of Bonus to Wages of Parti- cipants in Year. *No. of Societies which all otted Sums to Provident Funds in Year. Amount of Sums allotted to Provident Funds in Year. 1899 ... 99 6,731 46 4,635 Per Cent. 5-8 23 f 1,220 1900 ... 100 6,912 45 4,745 6-2 24 1,116 1901 ... 100 6,899 44 4,947 6-6 20 1,168 1,578 1902 ... 108 6,804 52 4,981 4-4 23 1903 ... 107 6,861 47 4,527 4'1 22 1,061 1904 ... 114 6,788 39 3,893 3-3 18 769 1905 ... 107 6,555 32 3,417 3-6 13 645 1906 ... 107 6,813 33 3,929 3-7 16 971 1907 ... 96 6,755 40 4,280 4-4 19 1,364 1908 ... 90 6,744 44 4,675 4-5 26 2,362 1909 ... 91 6,671 39 4,908 4-5 23 1^971 1910 ... 86 6,766 38 4,969 4-4 j 21 2,480 * Some of these Societies paid bonus on wages and also allotted sums to Provident Funds ; this was the case with 19 Societies in 1910. Out of the 86 Productive Associations of Workers in existence at the end of 1910 there were 40 which allotted a share in their INDUSTRIAL : ASSOCIATIONS OF WORKERS. 83 profits in favour of their employees, either as bonus on wages or as contributions to Provident Funds, or both; of these 19 both paid bonus on wages and allotted sums to Provident Funds, 19 paid bonus on wages only, and two credited the whole of the share in profits allotted to employees to Provident Funds. The average addition which the bonus made to the wages of participants was, in 1910, 4'4 per cent. Share of Employees in Membership, Capital, and Control. The extent to which the employees share in the membership, •capital and control of the Workers’ Productive Societies will be seen from the four Tables printed below : — Productive Associations other Individuals, 1899-1910. of Workers—Share of Employees, and Societies, in the Membership, [Compiled from Returns made to the Laboivr Department.] Year. Number of Socie- ties to which the Par- ticulars relate. Membership. Employees. Other Individuals. Societies. Total Mem- bership. No. - Percent- age. No. Percent- age. No. Percent- age. 1899 ... 88 3,285 19-6 10,730 63-8 2,793 16*6 16,808 1900 ... 88 3,616 21-2 10,457 61-4 2,958 17-4 17,031 1901 ... 91 3,683 21-4 10,440 60-7 3,068 17-9 17,191 1902 ... 88 3,421 19-6 10,831 62-2 3,172 18-2 17,424 1903 ... 92 3,279 18-0 11,646 64-0 3,273 18-0 18,198 1904 ... 101 3,469 17-4 12,965 65-2 3,449 17'4 19.883 1905 ... 89 3,332 19-4 10,366 60-3 3,479 20-3 17,177 1906 ... 97 3,478 18-3 11,779 62-1 3,719 19-6 18,976 1907 ... 86 3,372 18-4 11,071 60-6 3,832 21-0 18,275 1908 ... 84 3,570 16-1 14,892 67-1 3,738 16-8 22,200 1909 ... 83 3,758 16-6 15,018 66-3 3,872 17-1 22,648 1910 ... 78 3,699 16-0 15,510 66-9 3,964 17-1 23,173 It will be seen that in the year 1910 nearly 67 per cent, of the members of the 78 Associations which have supplied information (and which represent 95 per cent, of the total sales of the 86 Productive Associations of Workers) were persons not employed by the Associations, 17 per cent, were other Co-operative Societies, and only 16 per cent, (as against 19'6 per cent, in 1899) were employees of the Associations. The voting strength of the employees is, however, greater than would appear from these figures, because proxy voting is very seldom allowed by the rules of these Associations, and employees are, of course, more likely to be on the spot than the “ other individuals.” 24548 F 2 84 III.-CO-OPERATIVE SOCIETIES Productive Associations of Workers—Number and Propor- tion of Employees who were and who were not Members, 1899-1910. [ Compiled from Returns made to the Labour Department.} Year. Number of Societies to which the Particulars relate. Employees who were Members. Employees who were not Members. Total Employees. Number. Percentage. Number. Percentage. 1899 88 3,285 53-1 2,903 46-9 6,188 1900 88 3,616 57-1 2,718 42-9 6,334 1901 91 3,683 56-0 2,889 44-0 6,572 1902 88 3,421 54-3 2,877 45-7 6,298 1903 92 3,279 51-5 3,088 48-5 6,367 1904 101 3,469 54-8 2,862 45-2 6,331 1905 89 3,332 56-1 2,602 43-9 5,934 1906 97 3,478 54-3 2,931 45-7 6,409 1907 86 3,372 53-4 2,942 46-6 6,314 1908 84 3,570 56-0 2,807 44-0 6,377 1909 83 3,758 59-5 2,555 40-5 6,313 1910 78 3,699 58-2 2,659 41-8 6,358 It will be seen that in the 78 Productive Associations of Workers to which the figures relate, not quite three out of five of the employees were in 1910 members of the Association for which they worked. Productive Associations of Workers—Share of Employees, OTHER INDIVIDUAL MEMBERS, SOCIETIES, AND NON-MEMBERS, in Share and Loan Capital, 1899-1910. [ Compiled from Returns made to the Labour Department.] No.of Socie- ties to Capital held by Year. which the Par- Employees. Other Indivi- dual Members. Societies. Non-Members (Loans).* Total Share ticu- lars re- late. Amount. Per- cent- age. Amount. Per- cent- age. Amount. Per- cent- age. Amount. Per- cent- age. and Loan Capital. 1899 88 £ 72,122 12-6 £ 188,764 33-0 £ 210,408 36-8 £ 100,248 17-6 £ 571,542 1900 88 72,620 12-8 200,079 35-2 219,302 38-6 76,386 13-4 568,387 1901 91 76,078 13-1 214,885 37-1 225,813 250,581 39-0 62,648 10-8 579,424 1902 88 73,070 12-2 211,404 35-2 41-7 65,916 10-9 600,971 1903 92 78,573 13-5 207,993 35-6 236,381 40-5 60,741 10-4 583,688 1904 101 75,181 12-4 221.824 36-7 242,696 40-1 65,597 10-8 605,298 1905 89 ,67,996 11-7 221,536 38-0 242,992 41 -7 50,384 8-6 582,908 1906 97 71,428 69,578 11-7 221,394 36-2 265,381 43-5 52,307 8-6 610,510 1907 86 11-2 222,625 35-7 271,232 43-5 59,697 9-6 623.132 1908 84 72,260 11-2 236,056 36-6 270,743 41-9 66,351 10-3 645,410 1909 83 82,090 12-4 235,901 35-6 281,999 42-6 62,337 9-4 662,327 1910 78 81,576 12-3 237,204 35-8 288,775 43-5 55,566 8-4 663,121 Including Bank overdrafts. INDUSTRIAL. AGRICULTURAL. 85 Productive Associations or Workers—Proportion op Mem- bers of Committees of Management who were respec- tively Employees, other individual Members, and Representatives of Societies, 1899-1910. [ Compiled from Returns made to the Labour Department.~\ Number Number and Proportion of Committee-men who were of Year. Societies to which the Par- ticulars relate. Employees. Other Individual Members. Representatives of Societies. Total Commit- tee-men. No. Percen- tage. No. Percen- tage. No. Percen- tage. 1899 ... 88 334 40-3 360 43.4 135 16-3 829 1900 ... 88 333 40-4 355 43-1 136 16-5 824 1901 ... 91 368 43-8 337 40-2 134 16-0 839 1902 ... 88 302 38-2 342 43-3 146 18-5 790 1903 ... 92 314 38-1 357 43-3 153 18-6 824 1904 ... 101 369 40-8 379 41-9 157 17-3 905 1905 ... 89 309 38-4 371 46-2 124 15-4 804 1906 ... 97 297 35-1 390 46-0 160 18-9 847 1907 ... 86 301 38-2 352 44-6 136 17-2 789 1908 ... 84 290 36-7 367 46-5 133 16-8 790 1909 ... 83 292 38-9 314 41-8 145 19-3 751 1910 ... 78 256 36-5 297 42-4 148 21-1 701 Examining the figures in relation to 1910 contained in the two preceding tables, it will be observed that the total share and loan capital of the 78 Societies here referred to amounted to ,£663,121, of which 12‘3 per cent, belonged to the employees, 35'8 per cent, to other individual members, and 43'5 per cent, to other Societies; while the remaining 8'4 per cent, consisted of bank overdrafts and non-members’ loans. Of the 701 members of the Management Committees of these Societies 36'5 per cent, were employees, 42'4 per cent, other individuals, and 21'1 per cent, representatives of Retail (Store) Societies, etc., holding shares in these Productive Societies. It may be added that as regards the proportion of the production which was under the direct control of the employees, the returns received by the Department show that in 19 Societies (with 37‘2 per cent, of the total sales of the 78 Societies) the employees were not represented on the Managing Committees; in 39 Societies (with 27'2 per cent, of the sales) some of the Committee-men, but less than a majority, were employees; while in 20 Societies (with 35-6 per cent, of the total sales of the 78 Societies) employees formed the majority of the Managing Committee. Of these 20 Societies 14 were engaged in the manufacture of boots and shoes. B.—AGRICULTURAL CO-OPERATIVE SOCIETIES. Productive Societies. The number of Agricultural Productive Societies in existence at the end of each of the years 1899-1910, the number of these 86 III.—CO-OPERATIVE SOCIETIES. Societies which, in these years shared profits with their em- ployees, the number of the employees of these Societies, and the ratio which the bonus received by them bore to their wages, are shown in the Table which follows : — Profit-sharing by Agricultural Productive Societies, 1899-1910! [ Compiled from Returns made to the Labour Department, to the Chief Registrar of Friendly Societies, and to the Irish Agricultural Organisation Society.'] Societies which shared Profits with their Employees. Year. No. of all Societies at end of Year. No. of Societies which paid Bonus in Year. No. of Employees receiving Bonus on Wages in Year. Ratio of Bonus to Wages- of Participants in Year. 1899 137 i 3 Per Cent. 2-5 1900 156 ii 48 5-6 1901 161 12 78 4-9 1902 193 14 77 2-9 1903 225 19 133 4-3 1904 256 24 126 4-2 1905 260 27 177 3-3 1906 272 30 186 3-3 1907 287 38 222 5-4 1908 302 31 174 5-0 1909 317 48 318 5-4 1910 335 45 321 6-2 It will be seen that, taking all the Societies comprised in this group together, the element of Profit-sharing with employees has not, so far, played an important part in the organisation of the Agricultural Productive Societies. Among these Societies the principal group is formed by the Irish Dairying Societies, 291 in number in 1910, with aggregate sales of £2,059,905, or 93'4 per cent, of the total sales of the whole of the Agricultural Productive Societies in the United Kingdom. The profits made by these 291 Irish Societies in 1910 amounted to £23,958, out of which £591 in all was paid by 38 Societies to their employees as bonus on wages, to which it made an average addition of 5’9 per cent. With respect to shareholding by employees, the rules of the Agricultural Productive Societies provide that the share in profits falling to the employees shall be accumulated as shares in the Societies; and in those cases in which a share in profits has. been paid to the employees, it may be presumed that there are in the Societies by which this bonus has been allotted a certain number of employee-shareholders; speaking generally, however, it does not appear that in any considerable number of cases employees are members of the Society by which they are employed, nor that the employees are, to any very appreciable extent, repre- sented on the Committees of Management of these Agricultural Productive Societies. 87 IV.—CONVERSION OF ORDINARY BUSINESSES INTO CO-OPERATIVE SOCIETIES. In the great majority of cases the Industrial Co-operative Societies are undertakings initiated, and from their commence- ment owned and managed, mainly or entirely, hy working-men. But in a few cases undertakings originally established by employers in the ordinary way have, hy the admission of the workpeople employed to a very extensive share in the profit, capital, control, and responsibility, and by the adoption of co- operative principles of organisation, been converted into Co-opera- tive Societies. A short account of the three principal cases in which a change of industrial organisation of this nature has taken place will be of interest in connection with the subjects dealt with in the present Report, WM. THOMSON & SONS, LTD., HUDDERSFIELD. The earliest example is that of the business of woollen and worsted manufacturers carried on under the name of ¥m. Thomson & Sons, Limited, at Huddersfield. The owner of this concern, Mr. George Thomson, turned it in October, 1886, into a Society, which was registered under the Industrial and Provident Societies Act. The property was taken over from the firm by the new Society at a valuation of £19,713 including £10,628, value of raw materials and unfinished and finished stock, £4,226, book debts, and £4,859, value of machinery and fixtures. It was paid for partly in shares but mainly in loan stock, carrying 5 per cent, interest and repayable only if such interest should not be paid for two consecutive years. After providing for interest on loans and for depreciation (at the annual rate of 10 per cent, for fixtures and 2\ per cent, for buildings), the rules of the Society provide* that the dividend on the shares shall be limited to 5 per cent.; but if at any time the profits of the business do not allow of such dividend being paid in full, the deficit (but without interest) is a first charge on the subsequent profits. Out of the balance remaining after satisfying the claims of the shareholders the rules require that not less than 10 per cent, shall be carried to reserve, until this fund amounts to 10 per cent, of the capital. The Committee may, if they think fit, devote a portion of the profits to a fund to be called the Assurance. and Pension Fund against sickness, accident, and infirmity, in which case the following scale shall apply: — (1.) Whenever the net profits realised in any year are equal to 5 per cent, of the wages paid during that period, a sum equal to 1 per cent of such wages. * The Rules are stated in their present form. The provisions in regard to the Assurance and Pension Fund were inserted (with consequential amendments of the other provisions with respect to the division of profits) in 1892. 88 IV.—CONVERSION OF ORDINARY BUSINESSES INTO CO-OPERATIVE SOCIETIES. (2.) For every sum by which such profits are 2\ per cent, more than such 5 per cent., an additional sum equal to 1 per cent, of such wages; but so that the total amount thus applied shall not exceed 5 per cent, of the wages paid during such period. The remaining net profits are to be divided into two equal parts, one half to go to the employees of the Society as a bonus on wages and the other half to the customers of the Society as dividend on purchases.* The share thus allotted to the employees is to be paid, not in cash, but in shares or payments on account of shares in the Society. By the rules Mr. Thomson was appointed to be general manager of the Society during his life, but subject to removal by the vote of five-sixths of all the members of the association and five-sixths of all the votes capable of being given at a special general meeting; and it is declared that he shall, as manager, “ control all business carried on by the Society, and engage, remove, or discharge all assistant managers, salesmen, or employees of every description required to conduct such business, and fix their duties, salaries, or other remuneration at such rates, and require them to give security in any form approved by the Committee, as he may determine, subject to the duty of regularly reporting all such acts to the Committee.” It is also provided that Mr. Thomson, in the event of his death while he continues manager, or his resignation, may, by his will, or any instrument under his hand, appoint such person as he may select to succeed him as general manager, subject to confirmation by a special general meeting. The Committee of the Society, whose functions, under the circumstances, are mainly consultative, consists at present of Mr. Thomson (ex-officio president), two employees of the Society (a designer and a weaver), three representatives of Co-operative Societies which hold shares in William Thomson & Sons, Limited, one representative of the Huddersfield Trade Council, and the secretary of the Weavers’ Association. This Committee meets monthly; but those of its members who are employed in the mills act as a sub-committee, meeting as required, and dealing with questions of an urgent nature, such as a breakdown of machinery. The share capital of the Society at the end of 1911 amounted to £12,309, the loan capital to £11,931, the reserve fund to £2,402, and the Assurance and Pension Fund to £582. ThG number of employees was 121. Out of the total (£12,309) of share capital, £3,950 belonged to other Societies, viz. £3,850 to 44 working-class Co-operative Societies, mainly retail distributive (Store) Societies, and £100 to Trade Union organisations and Friendly Societies; while employees of the Society held £2,600: all but one of the 121 employees held shares, Mr. Thomson himself, as manager, * Tbis dividend on purchases is paid only to the two Co-operative Wholesale Societies, not to general traders, who prefer the usual terms of credit, &c. On account of the arrangements which have been made as to co-operative purchases, the exact equality between the share of the employees in the “ remaining net profits ” prescribed by the rules is subject to certain variations. WM. THOMSON & SONS, LTD. 89 holding £200. The remaining £5,759 was held by various individuals, 240 in number (workmen and other persons interested in the Co-operative movement). Of the loan capital, £6,967 belonged to members employed by the Society, and of this £6,876 belonged to Mr. Thomson; £880 belonged to other Societies, almost exclusively retail distributive (Store) Societies; £1,930 to Trade Union organisations; and £2,154 to various individuals. For the first few years after the conversion of this business into a Co-operative Society considerable difficulties were met with, impeding the financial success of the undertaking, because some of the customers, objecting to the association of Mr. Thomson with the co-operative movement and to the adoption of co-operative principles in the concern, withdrew a large amount of business. On the other hand, the working-class Co-operative Societies from the first have given the association considerable orders, and while the Society’s sales were at the outset about £22,500 a year, they have now more than doubled, being £46,932 in 19.11. The profits realised have during the existence of the Society varied greatly in different years, but the shareholders have received their 5 per cent, all through ;* and it is to be noted that on several occasions, in years in which the profits did not suffice to pay this rate in full, the employees voluntarily made good the deficiency out of their wages, the sums thus given up by the workpeople to the shareholders amounting in all to £1,400. After allowing for this amount, the average net addition which the share in profits (bonus on wages plus sums credited to the Assur- ance and Pension Fund) allotted to the employees has made to their wages since the Society was formed has been equivalent to 3'3 per cent, on wages. "~ With regard to the wages paid by the Society, it is to be observed that in 1893 it was decided at the suggestion of Mr. Thomson to substitute experimentally for the system of pay- ment by piece-work, usual in the woollen weaving industry, a system of time-wages, t and at the same time to adopt, instead of the hours worked in the trade (then 56| hours per week) a 48-hour week; time-wage payment with a 48-hour week has been in operation in these mills ever since. In the last Report of the Society (for the year ending December 31, 1911) it is stated that, desiring to commemorate in a practical manner the twenty-fifth year of the Society’s existence, it had increased wages all round, at the same time increasing the minimum of the weekly pension allowance to 12.s. for men and to 8s. for women. It is of interest to note that no married women are employed by the Society; those women who, upon their marriage, have worked not less than five years with the Society being granted, * On one occasion 4 per cent, only was paid, but the deficiency of 1 per cent, was made up to the shareholders out of profits soon afterwards. f The main objection entertained by the weavers to being paid piece-wages was that they received no remuneration in respect of periods between finishing one job and starting on another, this “ waiting for warps ” causing them considerable disadvantage. The time-wage rates introduced when piece-work was abolished were based upon average earnings in each department during a fairly good year. 90 IV.—CONVERSION OF ORDINARY BUSINESSES INTO CO-OPERATIVE SOCIETIES. out of the Assurance and Pension Fund, a sum of £5, and if not less than ten years, £10. It would appear that the position occupied hy the workpeople of Wm. Thomson & Sons, Limited, is of such a nature that they identify themselves to a remarkable extent with the interests of the business. The very considerable sums contributed out of their wages by the workpeople in order that the shareholders should not receive less than their usual return of 5 per cent, have already been mentioned. As further exemplifying the feelings entertained by the workpeople it may be observed that, as was reported in 1890, one of the workmen having invented a great improvement in weaving, instead of patenting it for his. own benefit, presented his invention to the Society. From the point of view of the management, the fact that the workpeople are directly interested in the business is found to result in their exhibiting increased application and avoiding waste; it also makes the management much less costly, because, as Mr. Thomson has said, “ each man and woman becomes his or her own manager.” At the same time the services rendered by Mr. Thomson as head of the business are so highly appreciated that his original salary of £500 a year was, within a few years after the formation of the Society, increased by the Committee to a very considerable extent. In 1891 Mr. Thomson informed the annual meeting that he was prepared to have the rule requiring a five-sixths majority before he could be removed from the management modified so that a smaller proportion would be required in order to depose him; but “ it was unanimously proposed not to alter the system, because, as it was then, they were perfectly satisfied with it.” Mr. Thomson also offered to give up the autocratic authority reserved to him as manager by the rules; but, although this offer was repeated in 1892 and again in 1893, on no occasion was the desire expressed that his position should be altered. BROWNFIELD’S GUILD POTTERY SOCIETY, LTD. The second of the three cases in which an ordinary business has been turned into a Co-operative Society is that of Brownfield’s Guild Pottery Society, Limited. Mr. Arthur Brownfield, the owner of the old-established pottery works of Messrs. William Brownfield and Sons, at Cobridge, in Staffordshire, determined, in consequence of the lock-out which took place in the pottery in- dustry in 1891, but in which his firm was in no way concerned, to place this undertaking upon a new footing by transferring it to a Co-operative Society, which was registered under the Indus- trial and Provident Societies Act in October, 1892, and commenced to manufacture in January, 1893. The following account of the start of the Society, reprinted from the Report on Profit-sharing published by the Board of Trade in 1894 (C.—7458), shows the history of this experiment up to that date : — The share in the assets of the late firm, which belonged to Mr. Arthur Brownfield, the founder of the society, is represented by £6,000 deferred stock carrying interest at 5 per cent., which “ shall not confer a right to demand payment of the principal from the society so long as any claim BROWNFIELD’S GUILD POTTERY SOCIETY, LTD. 91 for the payment of the ordinary share capital remains.” The existing capital of the society is stated to consist of £6,690 deferred stock, £7,531 preferred shares, and £932 loan stock. The £6,690 deferred stock includes, in addition to the £6,000 belonging to Mr. Brownfield, £690 belonging to employees of the society. Of the 7,531 preferred shares, £251 belong to employees of the society, £1,410 to trade unions (£650 to the Pottery Hollow Ware Pressers’ Society, £500 to the Pottery Printers’ Society, £250 to the National Order of Potters, and £10 to the Bakers’ Society),. £1,760 to working potters employed in other w7orks and railway servants,. £650 to 25 co-operative societies, £23 to employees of co-operative socie- ties, £125 to three customers of the Guild-Pottery society, £480 to persons who supply the society with raw materials, and £2,832 to the general public. The £932 loan stock consists, in part, of £200 advanced by two- managers of co-operative societies, and £50 advanced by a co-operative society, these loans carrying interest at 5 per cent., while the balance (£682) has been advanced without interest hy Mr. Brownfield, this sum including £282, part of his salary of £400 a year remaining unpaid. The total number of persons employed by the society is about 400, of whom 200 (not including Mr. Brownfield) hold stock or shares, all the 200 holding deferred stock, while 150 hold both deferred stock and preferred shares. The whole of the employees are expected before long to have become owners of at least £1 apiece of deferred stock, as they are taking up this stock by instalments; “ every week, when the workers are on full time, men pay 5 per cent, on their earnings and women 2^ per cent.” It is intended that the holdings of the employees in the deferred stock shall be increased until they amount in the aggregate to £2,000. The rules, provide that the net profits, “after providing for the interest and dividend upon any loans or deposits or guaranteed preferential shares,” shall be applied in reduction of the fixed stock and plant at specified rates, and in the reduction of any preliminary expenses, and then in the following manner: share capital is to receive a dividend of 6 per cent.; not less than 10 per cent, of the profits shall be carried to reserve until this fund amounts to 10 per cent, of the capital; not less than 2^ per cent, of the net profits shall be devoted to an education fund; the society’s subscrip- tion to the Co-operative TJnion is to be paid; the committee may devote a certain part of the profits to an assurance and pension fund; then three-fourths of all remaining net profits shall go “to all the persons who during the period to which the division relates have been employed by the society for not less than six calendar months in the whole, the proportion of profits falling due to each person to be determined as the committee may fix from time to time ” (the bonus is at present arranged to be “ in proportion to the weekly wage ”), while the other fourth of the net profits is to go to the customers of the society. All bonus coming to- employees is to be in the shape of shares or payments on account of a share in the society. Mr. Brownfield is manager of the society, the rules providing that he can be removed only “ by the vote of five-sixths of all the members of the association and five-sixths of all the votes capable of being given at a special general meeting ”; he “ shall control all business carried on by the society, and engage, remove, or discharge, all assistant- managers, salesmen, or employees of every description,” &c., “ subject to the duty of regularly reporting all such acts to the com- mittee.” His remuneration is determined by an agreement made between him and the committee, which was part of the conditions of the purchase of the business. The committee consists of 18 members, of whom 16 are persons employed by the society (including Mr. Brownfield, one of the travellers, the art director, the cashier, the stock-keeper, and several of the leading operatives) and two are representatives of Trade Unions (the National Order of Potters and the Pottery Hollow Ware Pressers’ Society). It appears that this undertaking has at its outset been considerably ham- pered by having to contend with “ the prejudice of the former customers of the late firm, who object to the Guild-Pottery supplying co-operative distributing societies,” which has led to a falling-off in the trade done. The- profits did not suffice to permit of the payment of any bonus to employees in 1894. In 1895 they received a bonus at the 92 IV.—CONVERSION OF ORDINARY BUSINESSES INTO CO-OPERATIVE SOCIETIES. rate of per cent, on their wages. In 1896 no bonus was paid, the profits of the preceding year not having been sufficient to permit of such payment. The only other available information in regard to this Society is that in November, 1897, the share- holders passed a resolution to go into voluntary liquidation in consequence of its not being able to meet its liabilities. HASLEMERE BUILDERS, LTD. The third of the cases in which an ordinary non-co-operative business has been converted into a Co-operative Society is note- worthy in this respect that, prior to this conversion, the employer in question (Mr. Herbert Hutchinson, architect and builder, of Haslemere, Surrey, employing some 150 persons) had for some time had in operation a scheme of Profit-sharing, his employees sharing in the profits of the business, but not owning any part of the capital. The profit-sharing scheme provided that, as from January 1, 1897, the surplus of the gross profits, after paying wages and salaries, including salaries of managers and principal, and the cost of materials, rent, taxes, insurance, office and travelling expenses, depreciation of plant and other out- goings, should be distributed as follows: —(1) A sum equal to 4 per cent, of the total outgoings in those jobs which should be executed by the firm without the superintendence of another architect, and 80 per cent, of the commission for work surveyed or designed, but not executed, by the firm, and for all agencywork, should be divided (in proportions to be agreed between them) be- tween the principal and the two managers by way of extra salary; {2) interest at a specified rate; and (3) a sum equivalent to 3£ per cent, of the total outgoings was to be divided between the principal and managers by way of extra salary. The balance was to form a Bonus Fund, part of which (88 per cent.) was to be distributed in cash, the rest (12 per cent.) being carried to a Provident Fund for the benefit of the employees; but in no case, unless one or both of the posts of managers should be in abeyance, was the principal to take any share in the Bonus Fund. The cash part of the Bonus Fund was to be divided in the follow- ing proportions : —30 per cent, was to go to the managers, 8 per cent, to the foremen, and 50 per cent, to the clerks and workmen, being distributed (save in the case of piece-workers and sub-con- tractors and their men) in proportion to their wages earned during the year. The accounts of the firm were to be audited and the division of profits certified by a chartered accountant. In 1898 the employees received a bonus (cash bonus plus sum credited to Provident Fund) equivalent to 91 per cent, on their salaries and wages, but no distribution of bonus took place in 1899 or in 1900; in 1901 46 employees received a share in the profits earned in 1900 equivalent to a little over 1 per cent, on their wages. Mr. Hutchinson found the results of the profit-sharing arrangements “most discouraging.” He attributed the unsuc- cessful financial results of the business to the want of energy and carefulness displayed by his workmen generally (especially on J HASLEMERE BUILDERS, LTD. 93 distant jobs); on the other hand, the profit-sharing scheme made many of his men “ extremely loyal.” At the end of 1900 Mr. Hutchinson “ abandoned Profit-sharing ” in order to introduce other arrangements. In the spring of 1902 the business was trans- ferred to a Co-operative Society, which, on March 10, 1902, was registered under the Industrial and Provident Societies Act, 1893, as “ the Haslemere Builders, Limited,” about 30 of Mr. Hutchin- son’s employees taking shares in the association. The rules of this Society provided that the Committee should issue to Mr. Hutchinson loan stock (up to £15,000) for the purpose of carrying out any objects of the Society, and in particular for acquiring the business of Mr. Hutchinson, such stock to carry interest at the rate of £5 per cent, per annum, except that it should not exceed in any year that received by the ordinary shares, and also, when the profits should permit, a share in the profits as hereinafter mentioned; it was not to confer a right to demand payment of the principal from the Society except on five years’ notice being given, unless by agreement with the Society. In case of liquidation, this loan stock was to rank pari passu with ordinary shares. It was to be transferable in amounts of not less than £10 to any person approved by the Committee. It was also provided that in the event of the loan stock held by the founder (Mr. Hutchinson) exceeding the total of the paid-up and the accumu- lated shares (sums credited as shares to capitalise profits; see below), the founder should have the right during the first ten years to buy out the shareholders at a price to be agreed upon between himself and the Society, or to be fixed by arbitration. The Committee of Management was to consist of the founder, as president, the secretary, manager, and seven committee-men appointed partly by the holders of loan stock and partly by share- holders, in proportion to the relative amounts of loan stock out- standing and of the share capital paid-up or standing to the credit of the members as accumulated shares; provided that the com- mittee-men elected by the shareholders should not, in any case, be less than two, and should be three whenever the paid-up and accumulated share capital held by the employees and ex-employees of the Society should exceed £1,000. Holders of loan stock were among themselves to have one vote for every complete £10 held by them, and no person was to be eligible for the Committee unless he held at least £10 share capital, whether as paid-up ordinary shares or accumulated shares, or the two together. Mr. Hutchinson was appointed president of the Society for life, with power to nominate his successor; and so long as the loan stock held by him or his successor should exceed the paid-up ordinary and the accumulated shares taken together, he was to have the right of veto on any resolution of the Committee or of the Society (but not so as to limit the provisions as to arbitration in case of disputes contained in the rules). The division of the profits (after providing for depreciation, interest on loans and reduction of preliminary expenses) was to be as follows: —The shares were in the first place to receive 5 per cent., and if the profits should not suffice to pay this rate on ordinary shares, the deficit was to be made 94 IV.—CONVERSION OF ORDINARY BUSINESSES INTO CO-OPERATIVE SOCIETIES. good by writing off tbe accumulated shares to the amount required; out of the balance an amount not exceeding 10 per cent, of the profits was to be devoted to forming a Reserve Fund to the value of one-tenth of the amount of the Society’s shares, loans and deposits; a further.10 per cent, was to be paid over to the Provi- dent Fund and Education Fund in proportions to be determined by the Committee; while the remaining profit of the Society was to form a “dividend fund” to be distributed as follows:—(a) One-third to the holders of ordinary and accumulated shares, and to the holders of special loan stock in proportion to the paid-up or accumulated amounts of their holdings; (b) one-tliird to all the employees of the Society who should have worked for the Society at least 600 hours during the period to which the distribution related, but so that the bonus to labour thus provided should accrue in favour of those employees only who were members of the Society, the share of profit which would have gone to the other em- ployees but for their non-membership being paid to the Provident Fund; (c) one-third to the management. This one-third allotted to the management was to be distributed in the proportion of 50 per cent, to the president as remuneration for his services, 15 per cent, to the Committee, and 35 per cent, to the manager and fore- men, and to others rendering special services to the Society, whether members or not; such 35 per cent, to be in addition to their bonus as employees, and to be at the sole discretion of the president, without his having to render any account of the same, and with power to carry any part forward from year to year. Of the shares of dividend allotted under (a) and (b) one-half was to be paid in cash, one-half in accumulated shares of the Society. In its first year the Society employed (according to the amount of work in hand) from 120 to 150 persons, of whom at the end of the year (1902) 27 received out of the profits in the form of cash bonus plus sums credited as shares or to Provident Fund, amounts equivalent to 41 per cent, on their wages; in 1903, 33 (out of 120) employees received a little over 3 per cent.; in 1904, 4 per cent, was paid to 44 employees (out of the total of 190 employed in that year); in 1905 no bonus was paid; in 1906 6'4 per cent, was paid to 30 member-employees (out of a total of 109 employees); in 1907 a bonus was paid, but neither the ratio which that bonus bore to wages, nor the number of participants can be stated; in 1908 and 1909 no share in profits was received by the employees, and in July, 1910, the Society went into voluntary liquidation. 95 APPENDIX A. i.—Cases in which Profit-sharing now Exists (according TO THE INFORMATION AVAILABLE AT 1ST AUGUST, 1912). The letters in column 4 signify as follows:—C.—paid in Cash; P.—paid to a Provident Fund or in pensions, or retained by firm to encourage thrift; C.P.=paid partly as C. and partly as P. ; S.= invested in shares in the undertaking ; C.S.=paid partly as C. and partly as S.; S.C.=paid as S. for a prescribed period or until employee has a prescribed holding, then partly as S. and partly as C., S.P.=paid partly as S. and partly as P. No. Date of adop- tion of Profit- sharing Name and Address of Firm. (Certain firms who wished to remain anonymous are indicated by letters, chosen at random.) Nature of Business and how Bonus is paid. (See note at head of Table.) Number of Em- ployees in 1911. Num- ber of em- ployees entitled to par- ticipate on Dec. 31,1911. 1 1865 “J.J.” Manufacture, C. 163 163 2 1866 Fox, Bros. & Co., Ltd., Wellington, Somerset The Colne Fishery Board, Colchester. Woollen manufacturers, C. 1561 239 3 1870 Oyster producers and sellers, C. 8-190 423« 4 1872 “ R. P.” Bookbinding and sta- tionery works, C. 250 40 6 1873 Agricultural and Horti- cultural Association, Ltd., 92, Long Acre, W.C. Supply and manufacture of artificial manure, oil cakes, seeds, &c., C.P. 195-325 195 3 1876 Women’s Printing So- ciety, 31, Brick Street, Piccadilly, W. Printing, C 53 51 7 1876 Tollesbury & Mersea (Blackwater) Oyster Fishery Co., Ltd., Tollesbury, Witham. Oyster merchants and planters, O.f 14-83 466° 8 18781 Sir W. G. Armstrong, Whitworth & Co., Ltd., Elswick Works, New- castle-on-Tyne. Shipbuilding, engineer- ing and ordnance manufacture, C. 15,812- 15,953 2,238 9 1878 Cassell & Co., Ltd., La Belle Sauvage, Lud- gate Hill, E.C. “T. L.”... Printing, publishing, and bookbinding. P. 1,150- 1,200 1,175 10 1881 Manufacture, C. 230 173 11 1882 Brooke, Bond, & Co., Ltd., Goulston Street, Aldgate East, E. Tea blending and pack- ing. C.P.§ 570-636 459 12 1883 Fidler & Sons, Royal Berkshire Seed Stores, Reading. Seedsmen, potato growers, farmers, and fruit salesmen. C. 40-60 36 13 1884 “ E E.” ... Manufacture. C. 53 26 14 1884 Blundell, Spence, & Co., Ltd, Hull. Colour, paint and varnish manufacture, oil boil- ing and refining. C. 803-840 600 15 1886]| Hazell, Watson, & Yiney, Ltd., London and Aylesbury. Printers and book- binders. C. 1,400 207 * Employed in rotation. t There is a Provident Fund for Widows and Orphans of employees to which the General Meeting of the shareholders allots such sums as it thinks fit (about 2 per cent, of divisiblo Profits.) 1 Adopted about 1878 in the Manchester business of Sir Joseph Whitworth & Co., Ltd. and continued after some modification by Sir W. G. Armstrong, Whitworth & Co., Ltd. ’ >§ C. until June, 1903. || See p. 64. 96 APPENDIX A.-----1.—CASES IN WHICH PROFIT-SHARING NOW EXISTS—(contd.). No. Date of adop- tion of Profit- sharing. Name and Address of Firm. (Certain firms who wished to remain anonymous are indicated by letters, chosen at random.) Nature of Business and how Bonus is paid. (See note at head of Table.) Number of Em- ployees in 1911. Num- ber of em- ployees entitled to par- ticipate on Dec. 31,1911. 16 1887 Lady W antage, Lockinge, Wantage, Berks. Farming. C. ... 188-238 147 17 1889 J. H. Ladyman & Co., King’s Lynn. Wholesale and retail grocers. C. 32 32 18 1889 Birmingham Dairy Co., Ltd., Birmingham. Dairymen and restaurant proprietors. C. 318-338 283 19 1889 “C.C.” Supply. C. 18-20 18 20 1889 Hele Paper Co., Ltd., Cullompton, Devon. Paper-making. C.P. ... 223 157 21 1889 Avalon Leather Board Co., Ltd., Street, Somerset. Leather board manufac- turers. C. 74-80 71 22 1889 “ A. B.” Manufacturers. C. 1,250 45 23 1889 Robinson Bros., Ltd., Ryder’s Green, West Bromwich. Tar distilling. C.P. ... 118-144 131 24 1889 Sonth Metropolitan Gas Co., Old Kent Road, S.E. Gasworks. S.P. 5,534- 6,704 5,800 25 1890 Clarke, Nickolls, & Coombs, Ltd., Clarnico Works, Victoria Park, N.E. Manufacturers of con- fectionery. C.P. 2,500- 2,900 1,995 26 1890 “C.D.” C 16 12 27 1890 John Rowntree & Sons, 19-21, Westborough, Scarborough. Grocers, provision mer- merchants and res- taurant proprietors. p # 10C-130 120 28 1890 “D.D.” Corn and agricultural requirements. C. 206 206 29 1890 “ M.M.” Flour millers. C.P. ... 131 78 30 1891 Stainshy & Lyon, Ltd., Knottingley. Tar distillers. C.P. ... 42-53 43 31 1891 Valvoline Oil Co., (suc- cessors to Boult Bros. & Co.), C12,Exchange Buildings, Liverpool. Oil refiners. C. 36 31 32 1891 Thomas Brakell, Ltd., 58, Stanley Street, Liverpool. Printing. C. ... ... 116-128 100 33 1892 Geo. Anderton & Son, Ltd., Cleckheaton, Yorks. Worsted spinners C.... 580 81 34 1892 Clement Dailey & Co., Ltd., Park Butts, Kidderminster. Corn, &c. merchants. C. 35 35 35 1892 “ L. M.” Supply and manufac- ture. C. 670 221 36 1893 John Sadd & Sons, Ltd., Maldon, Essex. Timber merchants. C. 141-175 127 37 1894 Guy’s Hospital Trained Nurses’ Institution, Guy’s Hospital, S.E. Nursing. P. ... ... 105-116 66 38 1894 South Suburban Gas Co., Lower Sydenham, S.E. Gasworks. C.S. 618-712 621 * From 1893 to 1899 this firm owned a caf^, in which the bonus was treated as C. APPENDIX A.—I.—CASES IN WHICH PROFIT-SHARING 97 NOW EXISTS—{contd.). No. Date of adop- tion of Profit- sharing Name and Address of Firm. (Certain firms who wished to remain anonymous are indicated by letters, chosen at random.) Nature of Business and how Bonus is paid. (See note at head of Table.) N umber of Em- ployees in 1911. Num- ber of em- ployees entitled to par- ticipate on Dec. 31, 1911. 39 1894 D. Ballantyne & Co., March Street and Dam- croft Mills, Peebles, and Caerlee Mill, In- nerleithen. Woollen manufacturers. C.P.* 840 729 40 1895 R. B. Carr, Lomas & Co., Ltd., Manchester. G. W. Chitty & Co., Ltd., Charlton Mill, Dover. Mantle manufacturing. C. 475 76 41 1895 Flour millers. C.P. ... 55-60 53 42 1895 T. Chalmers & Sons, Ltd., Lochmill, Lin- lithgow. “P. Y.” Paper making. C. 80 79 43 1896 Manufacture. S.P. ... 1450- 1500. 1251 44 1898 “ K. K.” Manufacture. C. 1961- 2066. 485 45 1898 T. Morley, King’s Road, Reading. Printer, show card writer, &c. C. 10-12 11 45 1899 'Humphries & Bobbett, Castle Flour Mills, Bristol. Corn millers. C. 44 44 47 1899 Rollason & Jones, Nun- eaton. Brace, belt, and garter web manufacturers. C. 200-210 19 48 1899 Wyles Bros., Ltd., East Street, Derby. Wholesale boot and shoe merchants. C. 250 250 49 1900 Foster, Sons& Co., Ltd., 24, Station Road, Padi- ham, Burnley. Builders and con- tractors. S.P.f 56-80 68 50 1900 D. Cameron & Son, 13, Salisbury Place, Edin- burgh. Building. C. ... 3-9 2 51 1909 Spillers & Bakers, Ltd., Cardiff. Millers, corn merchants, biscuit manufacturers, &e. C. 1350 708 52 1900 John Stow, Ltd., 3, Free Street, Bradford. Cabinet making and upholstering. C. 21-46 11 53 1901 Chester United Gas Co., Chester. Gasworks. C.S. 109-117 73 54 1901 Sir Herewald Wake, Bart., Courteenhall, Northampton. Farming. C 47 47 55 1901 Commercial Gas Co., Stepney, E. Gasworks. S.P. 1411 1234 56 1902 Morris & Bolton, Ltd., 17, Book’s Court, Furnival Street, E.C. Printing ink manufac- turers. C. 45-50 5 57 1902 “B.B.” Manufacture and supply, C.S. 81 44 58 1902 H. Backhouse & Co., Ltd., Dundalk, Ireland. Grocers, wine merchants, chemists and drug- gists, C. 45-50 48 59 1902 J. Cropper & Co.. Ltd., Burnside Mills, Kendal. Paper makers, C. 410 40 60 1902 “L.R.” Manufacture, C. 50-104 28 61 1903 | “ M. R. ” Manchester ... Supply, C 125 74 C. until 1903. 21548 * C. until 1898. G 98 APPENDIX A.—I.—CASES IN WHICH PROFIT-SHARING NOW EXISTS—([contd.). No. Date of adop- tion of Profit- sharing. Name and Address of Firm. (Certain firms who wished to remain anonymous are indicated by letters, chosen at random.) Nature of Business and how Bonus is paid (See note at head of Table,) Number of Em- ployees in 1911. Num- ber of em- ployees entitled to par- ticipate on Dec. 31,1911. G2 1903 P. & O. Garnett, Ltd., Wharfe Works, Cleck- heaton. Ironfounders and ma- chine makers. C. 140 119 63 1903 Saville’s (1902), Ltd., Hulme, Manchester. Finings manufacturers and brewers’ sundries- men. C. 24 19 64 1903 “ K.T.” Wharfingers and bonded warehousekeepers. 0. 173 85 65 1904 John Knight, Ltd., Silvertown, E. Butt, Yosper & Knight, 103, Old Town Street and Mill Street, Ply- mouth. Soap manufacturers. C.S.* 581-659 490 66 1904 Woollen merchants and clothing manufac- turers. C. 280 64 67 1904 J. Adnams&Son, Speen- hamland Brewery, Newbury. Brewing and bottling. C. 8-10 9 68 1905 Hay&Son, Ltd., 97-101, Norfolk Street, Shef- field. Wine and spirit mer- chants. O. 50 50 69 1905 Mackenzie & Storrie, Ltd., 35, Shore, Leith. Printers, lithographers, and stationers. C. 14 5 70 1905 “B.C.” Provision merchants and food specialists. C. 18 18 71 1905 “ L.L.” Chocolate manufac- turers. C. 60 12 72 1906 Henry Sagar, Ltd., Mill House Dye Works, Triangle, Halifax. Dyers and finishers. C. 80 80 73 1906 “ O.N.” Worsted and cotton manufacturers. C. 200-210 210 74 1906 Mail & Leader, Ltd., High Bridge, New- castle-on-Tyne. Newspaper publishers. C. 272 114 75 1906 “R.S.” Manufacture and sup- ply. C. 1,083 1,000 76 1907 W. J. Parry, Ltd., Coet- mor Yard, Bethesda. G eneral merchants. S... 7 7 77 1907 Douglas & Son, Ltd., Brunswick Street, Glasgow. Musical instrument manufacturers and specialists. C. 14 11 78 1907 Gilbert Bros., Nantwich Boot manufacturers. S.P. 92 92 79 1907 A. C. Penman, Queens- berry Motor Works, Dumfries. Motor carriage manu- facturing. C. 90-100 13 80 1907 D. Redhead & Co., Ltd., Crown Street, Ketter- Manufacturing confec- tioners. C. 11-12 12 81 1907 ing. Prudential Assurance Co., Ltd., Holborn Bars, E.C. Issue of insurances and annuities on lives. C. 20,664 17,963 82 1908 Leamington Priors Gas Co., Leamington Spa. Gasworks. S.P. 116-135 111 * C. until 1909.  APPENDIX A.—I.—CASES IN WHICH PROFIT-SHARING 99 NOW EXISTS—(contd.). No. Date of adop- tion of Profit- sharing. Name and Address of Firm. Nature of Business and how Bonus is paid. (See note at head of Table.) Number of Em- ployees in 1911. Num- ber of em- ployees entitled to par- ticipate on Dec. 31,1911. 83 1908 Wrexham Gas Co., 23, Salop Road, Wrexham. Gasworks. S.C. 64 59 84 1908 Epsom and Ewell Gas Co., Epsom. Gasworks. S. ... 59-83 50 85 1908 Lord Rayleigh, Terling, near Witham. Farming. C. ... 300 219 86 1908 Rugby Gas Co., Craig- side, Rugby. Gasworks. S.C. 54-71 42 87 1908 Tamworth Herald Co., Ltd., 14, Silver Street, Tamworth. Letterpress printing, bookbinding, &c. C. 22 22 88 1908 The Reporter, Ltd., Dewsbury. Weekly newspaper. C. 23-24 22 89 1908 Tunbridge Wells Gas Co., 44, High Street, Tunbridge Wells. Gasworks. S.C. 135 135 90 1908 Bournemouth Gas and Water Co., Bourne- mouth. Gasworks. S.C. 500-600 396 91 1908 Cardiff Gas Light & Coke Co., Bute Ter- race, Cardiff. Gasworks. S.P. 500-600 235 92 1908 Castner-Kellner Alkali Co., Ltd, 13, Ab- church Lane, E.C. Manufacture of bleach- ing powder and caus- tic soda by electro- lytical process. C. 725-775 683 93 1908 Gloucester Gas Light Co., Eastgate Street, Gloucester. Gasworks. S.P. 119-127 113 94 1908 Walker & Wallsend Union Gas Co., Nep- tune Road, Wallsend- on-Tyne. Gasworks. S 113 95 95 1908 Wellingborough Gas Light Co., Ltd., Wel- lingborough. Gasworks. S.C. 63 61 96 1908 Tottenham & Edmon- ton Gas Light & Coke Co., 639, High Road, Tottenham, N. Gasworks. S.P. 620-650 597 97 1908 Strutt & Parker, Dengie, Essex. Farming. C 80 27 98 1908 Croydon Gas Co., Katharine Street, Croydon. Gasworks. S.P. 544-608 539 99 1909 W eston-super-Mare Gas- light Co., 32, The Boulevard, Weston- super-Mare. Gasworks. S.P. 109-140 72 100 1909 Gas Light & Coke Co., Horseferry Road, Westminster, S.W. Gasworks. S.C. 11,893- 13,532. 9257 101 1909 Grantham Gas Co., High Street, Grant- ham. Gasworks. C.S. 50-64 48 G 2 l 24548 100 APPENDIX A.—I.—CASES IN WHICH PROFIT-SHARING NOW EXISTS—(contd.). No. Date of adop- tion of Profit- sharing. Name and Address of Firm. Nature of Business and how Bonus is paid. (See note at head of Table.) Number of Em- ployees in 1911. Num- ber of em- ployees entitled to par- ticipate on Dec. 31,1911. 102 1909 Westminster Electric Supply Corporation, Ltd., liccleston Place. S.W. Supply and distribution of electric energy. C. 350-412 273 103 1909 Lever Bros., Ltd., Port Sunlight, Cheshire. Soap manufacturers. C. “over 9,000” 1,448* 104 1909 Barratt & Co., Ltd., Mayes Boad, Wood Green, N. Manufacturers of con- fectionery. C. 1,500- 2,000 217 105 1909 Cambridge University & Town Gas Light Co., 52, Sidney Street, Cambridge. Gasworks. S.P. 210-242 168 106 1909 Cotton Powder Co., Ltd., 24, Walbrook, E.C. Manufacture of cordite, guncotton, &c. S.f 384 193 107 1909 City of Waterford Gas Co., 94, South Mall, Cork. Gasworks. S.P. 70-90 64 108 1903 Ilford Gas Co., Broad- way, Ilford. Gasworks. S.P. 197-207 157 109 1909 Watford Gas & Coke Co., Watford. Gasworks. S. ... 115-130 120 110 1909 Dartf ord Gas Co., Water- side, Dartford. Gasworks. S.C. 42-55 37 111 1909 Enfield Gas Co., Sydney Hoad, Enfield. Gasworks. S.P. 171 145 112 1909 Norman, Sawyer & Co., Ltd., Cheltenham. Printing, stationery, &c. C. - 46 46 113 1910 J. T. Cooper & Son, King Street, Graves- end. Upholsterers. C. 41 41 114 1910 Wilkin & Sons, Ltd., Tiptree, Essex. Jam manufacture. C. In factory, 140-200. On farms, 80-800. 40 115 1910 Hasler and Clapham, Dunmow. Corn merchants and farmers. C. 47 39 116 1910 The “Sanitas” Co.,Ltd., Locksley Street, Lime- house, E. Disinfectant, chemical, and embrocation manufacturers. C. 120 105 117 1910 Walford, Hasler & Co , Ltd., Dunmow. Coal merchants. C. ... 21 18 118 1910 Longwood Gas Co., Longwood, Hudders- field. Gasworks. C.S. 61-76 29 119 1910 Wandsworth & Putney Gaslight & Coke Co., Wandsworth, S.W. Gasworks. S 500 357 120 1910 Gregory, Love & Co., Lt 1., 175, Friar Street, Beading. Grocers, provision mer- chants, &c. C. 58 54 Including the employees of certain associated companies of Lever Bros. Ltd. t Bonus invested in shares of Company or other securities. APPENDIX A.—I.—CASES IN WHICH PROFIT-SHARING 101 NOW EXISTS—(Gontd.). No. Date of adop- tion of Profit- sharing. Name and Address of Firm. (Certain firms who wished to remain anonymous are indicated by letters, chosen at random.) Nature of Business and how Bonus is paid. (See note at head of Table.) Number of Em- ployees in 1911. Num- ber of em- ployees entitled to par- ticipate on Dec. 31,1911. 121 1911 Merthyr Tydfil Gas Co., Picton Street, Merthyr Tydfil. Gasworks. S.C. 55-73 35 122 1911 Bussells & Wrangham, Ltd., Malton. Brewers and millers. S. Not known. 30. 123 1911 Plymouth & Stonehouse Gas Light and Coke Co., Plymouth. Gasworks. S.P. 346-378 289 124 1911 Johnson Bros. (Dyers), Ltd., Bootle Dye Works, Liverpool. Dyers and dry cleaners. C. 1918 300 125 1911 Loders & Nucoline, Ltd., Cairn Mills, Silver- town, Essex. Oilseed mills. C.S. ... 375 53 126 1911 Chas. H. Osborne, Luton Straw hat manufacturer. C. Gasworks. C.S. 120 120 127 1911 Liverpool United Gas Light Co., Duke Street, Liverpool. 1724- 1949 1307 128 1912 Harrow and Stanmore Gas Co., Gas Works, Harrow. Gasworks. S 101-130 90* 129 1912 Hertford Gas Light Co., Gas Works, Hertford. Gasworks. S.C. ... 30 30f 130 1912 Notting Hill Electric Lighting Co., Ltd.,~ Notting Hill Gate, W. Supply of electricity. 0. 33 sit 131 1912 Wilkinson & Riddell, Ltd., Birmingham. Textile merchants. C.... 325 212f 132 1912 Aldershot Gas Water & District Lighting Co., Aldershot. Gas and water under- taking. S.P. 149 143f 133 1912 “ O.O.” Rag merchants. C. ... 11 4+ -1 * Number of employees to whom retrospective bonus was paid for 1911. t Number of employees entitled at date of furnishing information in 1912. Addendum to Appendix A.—I. The following schemes are known to have been started at the dates mentioned, but the Department has no information to sbow whether they are still in existence or have been abandoned:— Date of Adop- tion. Name and Address of Firm. Nature of Business. How Bonus paid. Number of Em- ployees. 1890 Jackson & Sons, King’s Road Corner, Reading. Tailors and outfitters ... C. 92 (in 1905) '1892 James Johnston, Abbey Road, Stirling. Timber merchant c. 12-30 (in 1903) 1905 “A.A.,” Manchester Drapers and milliners ... c. 9-11 (in 1907) 102 APPENDIX A—(contd.). II.—Existing Schemes summarised by Forms of Bonus Payment and Years in which Schemes were STARTED. Schemes started. How Bonus is paid. Upto 1870. 1871- 1880. 1881- 1890. 1891- 1895. 1896- 1900. 1901- 1905. 1906- 1910. 1911- 1912. Total. All in cash 3 4 13 8 8 15 23 5 79 All to a Provident or Pension Fund, or re- tained by firm to en- courage thrift. 1 1 1 3 Part in cash and part retained for provident purposes. ... 1 5 3 ... ... ... ... 9 All in shares in the undertaking. ... ... ... ... ... ... 6 2 8 Part in cash and part in shares. ... ... ... 1 ... 3 2 2 8 All in shares for a pre- scribed period or until employee has a pre- scribed holding; then part in cash and part in shares. 7 2 9 Part in shares and part retained for provident purposes. 1 2 1 11 2 17 Total 3 6 20 13 10 19 49 13 133 APPENDIX B. I.—Cases in which Profit-sharing has been abandoned. The letters in column 4 signify as follows:—C.=paid in cash ; P.—paid to a Provident Fund., or in pensions, or retained, by firm to encourage thrift; C.P.—paid partly as C. and partly as P. ; P.C. = paid as P. until employee has a prescribed holaing, then as C.; S.=invested in shares in the undertaking; G.S.—paidpartly as C. and partly as S.; S.C.=paid as S. for a prescribed period, or until employee has a prescribed holding, then partly as S. and partly as C. ; S. P. = paid partly as S. and partly as P. Duration of Profit- sharing. Name and Address of Firm. Nature of Business and Number of Employees at date of abandonment of Profit-sharing. How Bonus was paid. (See note at head of Table.) Cause of Cessation of Profit-sharing. 1829-? Lord Wallscourt, Co. Galway, Ireland ... Farming (*) ... ... ... . . c. Not known. 1865-75 Henry Briggs, Son, & Co., Ltd., Whitwood and Methley Collieries, Yorkshire Coal mining (1203) c. Dissatisfaction of employees. 1865-? Clayton Plate and Bar Iron Co., Ltd. Iron manufacture (*) ... c. Not known. 1865-68 Greening & Co., Ltd., Salford Wire netting &c manufacture (*) c. Liquidation. 1865-88 Milliners & Dressmakers Co., Ltd., London . Millinery and dressmaking (*) c. Want of financial success. 1865-1906 Jolly & Son, Bath, Ltd., Milsom Street, Bath. Silk mercers, drapers, &c. (300-370) ... c. Dissatisfaction of employers with results. 1866-72 John Curwen, Plaistow and London Music printing and publishing (20-45) c. Dissatisfaction of employees ; increase in wages granted. 1866-? South Buckley Coal and Fire Brick Co., Ltd. Coal mining and fire-brick making (*) c. Liquidation. 1866-87 Cobden Memorial Mills Co., Ltd., Sabden, Lancs. Cotton manufacture (*) c. Liquidation. 1866-72 Wm. Lawson, Blennerhasset, Cumberland . Farming (*) c. Sale of farm. 1866-74 Fox, Head & Co., Middlesbrough Iron manufacture (400 or 600) c. Dissatisfaction of employers with results. 1867-98 Fletcher & Son, Castle Works, Norwich ... Printers, stationers, &c. (198-205) ... c. Changes in business. 1867-? Lloyd & Summerfield, Co-partnership, Ltd., Birmingham. Glass manufacture (*)... Not known. Not known. *Number of employees not known. 103 Appendix B.—I.—Cases in which PkofiT-sharing has been abandoned—(contd.). Duration of Profit- sharing. Name and Address of Firm. (Certain firms who wished to remain anonymous are indicated by letters, chosen at random.) Nature of Business and Number of Employees at date of abandonment of Profit-sharing. How Bonus was paid. (See note at head of Table.) Cause of Cessation of Profit-sharing. 1867—? Wardle, Blythe & Co., Denaby Co-operative Pottery. Pottery manufacture (•) c. Not known. 1867-70 John & Henry GWynne, Hammersmith Ironworks, London. Engineering works (*) ... c. Dissatisfaction of employers with results. 1868-72 Price’s Patent Candle Co., Ltd., London ... Candle manufacture (900) c. Substitution of shorter hours. 1870-? .North of England Industrial Coal & Iron Co., Ltd., Middlesbrough. Coal and iron mining, and iron smelt- ing (*). c. Dissatisfaction of employers with results. 1871-74 Lord George Manners, Ditton Lodge Farm, near Newmarket. Farming (•) c. Death of employer. 1871-77 Benjamin Collins, London Bookbinding (200) c. Dissatisfaction of employer with results. 1872 Troughton & Simms, London and Charlton. Mathematical instrument making (*).. c. Apathy of employees. 1872-84 Spottiswoode & Co., New Street Square, London. Printing (over 350) c. Diminution of profits, chiefly through competition. 1872-79 Gimson & Co., Leicester Engineering works (150) c. Diminution of profits. ?1872-? W. Hill & Son, London Baking (*) ... ... c. Dissatisfaction of employers with results. 1873-77 John Thomasson & Son, Bolton Cotton spinning (160) ... c. Diminution of profits and dissatisfac- tion of employers with results. 1874 M. Wright & Sons, Leicester Elastic web manufacture (*) ... c. Dissatisfaction of employers with results. 1876-1900 Goodall & Suddick, Leeds Printers and stationers (300) ... c. Changes in business. 1876-91 Hamilton & Co., Ltd. (previously Hamilton & Co.), London. Shirt, collar, and underlinen manufac- ture, dressmaking and millinery (50). C.P. Liquidation. 1880- 1907 (?) W. Jacks & Co , Glasgow Iron merchants (38) ... c. Substitution of bonus giving. 1880-92(?) Co-operative Needlewomen’s Society, Holborn, London. Needlework (25) Not known. Dissolution. 1881-99 Holmes & Co., Lichfield Ooachmaking (14) ... C.P. Want of financial success. 1881-1906 Birmingham Coffee House Co., Ltd., Birmingham. Temperance caterers and hotel pro- prietors (279). C. Diminution of profits. 1882-90 Bolton King, Gaydon, Warwick Farming (*) C. Losses. 1883-93 Decorative Co-operators’ Association, Ltd., (afterwards D’Oyly & Co., Ltd.), London. House painting and decorating (60-70) S.P. & c. Liquidation. 1883-89 Tangyes, Ltd., Birmingham Engineering works (1,500) c. Substitution of fixed rate of interest, to avoid undue publicity. 1884-1900 Perrott & Perrott, Ltd., Tenter Street, Moorfields. Packers, clothworkers and finishers, &c. (110-120). C.P. Dissatisfaction with results and apathy of employees. 1885-87 Working Women’s Co-operative Associa- tion, Ltd., London. Shirt and dressmaking (*) s. Want of success ; business transferred. 1885-94 Needlewomen’s Co-operative Association, Ltd., London. Underlinen, <£c., manufacture (60) ... s.c. Want of success ; dissolution. 1886-1907 J. W. Arrowsmith, Quay Place, Bristol ... Printing and publishing (68) c. Substitution of increased wages. 1886-99 Burroughs Wellcome & Co., London, E.C. Manufacturing chemists (394) c. Dissatisfaction of employers with results. 1886-97 Earl Spencer, Althorp House, Northampton Farming (11) ... c.s. Want of success. 1886-1903 Earl Grey, Howick, Lesbury, Northumber- land. Farming (85) ... C.P. Farms let ; or transition from one form of cultivation to another. 1887-1905 John Boyd Kinnear, Kinloch, Fifeshire ... Farming (24) c. Occupation of farm given up. 1887-91 Waterman & Co., Bristol ... Boot manufacturers (46) c. Firm gave up manufacturing. 1887-95 H. D. Young & Sons, High Street, Edin- burgh. “G. R.” Leather merchants, &c, (22) ... c. Dissatisfaction of employers with results. 1887-1909 Engineers (100) C. or P. as em- ployees decide. Not known. 1887-96 Circle Co-operative Printers’ Society, Ltd., Barking Road, (formerly Circle Co- operative Printing Co. of Belfast). Workwomen’s Co-operative Association, Ltd., London. Printing and publishing (5) S.P. Dissolution. 1887-91 Shirtmaking and tailoring (80) C. Want of success ; liquidation, 1888-97 S. & E. Collier, Ltd., Grovelands, Reading. Coventry Gas Fitting, Electrical, and En- gineering Co., Ltd. (formerly Coventry Gas Fittings Co., Ltd.), Coventry. Brick, pottery, &c. making (150-160) C. Substitution of old-age pensions. 1888-1900 Gas, electrical and general engineers (41). C.P, Liquidation. * Number of employees not known. 104 105 Appendix B.—I.—Cases in which Profit-sharing has been abandoned—(contd.). Duration of Profit- sharing. Name and Address of Firm. (Certain firms who wished to remain anonymous are indicated by letters, chosen at random.) Nature of Business and Number of Employees at date of abandonment of Profit-sharing. How Bonus was paid. (See note at head of Table.) Cause of Cessation of Profit-sharing 1888-1908 Binns & Co., Ltd., Market Place, Derby ... Oatmeal and cornfactors, seedsmen, &c. (11-13). s. Liquidation. 1888-99 Richard Binns, Lovelands, Reigate Fruit farming (4-34) ... C.P. Want of success. 1888-1908 Build of Handicraft, Ltd., London Furniture makers, metal workers, &c. (15-25). c. Liquidation. 1888-1907 T. Bushill & Sons, Ltd., Coventry ... Manufacturing stationers (428) c* Dissatisfaction of employers with results. 1889-1907 W. Rowntree & Sons, Scarborough Drapers, &c. (255) c. Dissatisfaction of employers with results ; different methods adopted in favour of employees. 1889-1904 Sampson Low, Marston & Co., Ltd., Southwark Street, London, S.E. Booksellers and publishers (70) c. Liquidation. 1889-99 Western Tanning Co., Bedminster, Bristol. Tanning (55) c. Dissatisfaction with system. 1889-99 New Welsh Slate Co., Ltd., Festiniog, North Wales. Slate quarrying (231) c. Liquidation. 1889-1900 “ D.P.” Printing (520) c. Apathy of employees and liabilities imposed by Workmen’s Compensa- tion Act. 1889-94 Thomas Scott, jNew Bridge Street, JSew- castle-on-Tyne. Printer, publisher and stationer (20) c. Dissatisfaction of employers with results. 1889-90 Aitken, Dott & Son, Edinburgh ... Frame-making (f) c. Apathy of employees. 1889-91 J. & S. Wood, Westbourne Park, London. Laundry work (50 permanent) c. Dissatisfaction of employers with results. 1889-1902 W. D. & II. O. Wills, Ltd., Bristol Tobacco manufacture (f) C.P. Transfer of business. 1889-1901 Christopher Thomas & Bros., Ltd., Broad Plain, Bristol. Soap and candle manufacture (277) ... c. Substitution of shorter hours. I889-92(?) Peto Bros . London ... Building (f) Engineers’ machine tool makers (55) c. Job fin ished; discontinuance of business. 1889-97 Lee& Hunt, ArkwrishtWorks,Nottingham. c. Want of success. 1890-94 McVitie & Price, Edinburgh Biscuit manufacturers (250) ... c. Destruction of Works by fire ; system in abeyance. 1890-1900 Robert Martin, Crown Printing Works, West Hartlepool. Printing (14) ... C. Dissatisfaction of employer with results. 1890-1903 Newman & Son, 27, Widegate Street, Bishopgate, London, E. Printing (26) ... P. Transfer of business. 1890-? Thomas Hailing, Oxford Works, Chelten- ham. Printing (9) C. Not known. 1890-98 Cardiff Milling Co.(f ormerly James Tucker, Ltd.), Cardiff. Millers (120) C. Liquidation. 1890-91 Bailey, Nokes & Co., Ltd., Birmingham. Rolling mills and ammunition makers (t). Tramways (over 100) ... c. Want of success. 1890-93 (?) London, Deptford & Greenwich Tram- ways Co., (formerly Southwark & Dept- ford Tramways Co.), London. c. Apathy of employees. 1890-95 Archibald Edmtston & Son, Cannon Street, Sslford. Engineering works (60) c. Dissatisfaction of employers with results. 1890-92 G. Hubbard, London Building (over 150) c. Want of success. 1890-93 Kensington Co-operative Stores, Ltd., London. Stores (f) Stores (f) Not known. Want of success : reconstruction. 1^90-91 General Service Co-operative Stores, Ltd., London. Not known. Liquidation. 1890-91 Central Co-operative Stores, Ltd., London. Stores (f) Not known. Liquidation. 1890-93 London Co operative Supply Stores, Ltd., London. Stores (f) Not known. Liquidation. 1890-94 Charles Joyner & Co., Icknield Square, Birmingham. Chandelier, &c. manufacturers (250)... C.P. Conversion of business into limited company. 1890-92 G. Holloway, Temple Guiting, Gloucester- shire. Farming (f) s. Death of employer. 1890-1909 « f. N7’ Engineers (1,185) c. Diminution of profits. 1890-1903 Osborne & Young, Coldharbour Lane, Brixton, London, S.W. Corn merchants, flour factors, and forage merchants (94). c. Dissatisfaction of employers with results. 1890-98 Robert McVitie, Queensferry Street, Edin- burgh. Baker and confectioner (65-70) p. Business converted into a limited com- pany, a number of employees taking shares. * (_\P until 1895. f Number of employees not known. 106 Appendix B.—I.—Cases in which Profit-sharing has been abandoned—(contd.). How Bonus Duration of Profit- sharing. Name and Address of Firm. (Certain firms who wished to remain anonymous are indicated by letters, chosen at random.) Nature of Business and Number of Employees at date of abandonment of Profit-sharing. was paid (See note at head of Cause of Cessation of Profit-sharing, Table.) 1890-97 W. & J. Mackay, & Co., Ltd., Fair Row, Printing, bookbinding, &c. (72) c. Apathy of employees. Chatham. 1890-91 Browett, Lindley & Co., Ltd., formerly Engineering works (80) c. Special circumstances. Salford, now Patricroft, near Manchester. 1890-1907 “J.N.” Fruit (10-18) c. Want of success. 1890-91 Drake & Gorham, London ... Electrical engineering (*) c. Not known. 1890-1904 Marquis of Hertford, Ragley, Warwickshire. Farming (25) ... c. Farms let. 1890-1900 H. D. & B. Headley, High Street, Ashford, Printing (77) c. Changes in business arrangements. Kent. 1890-91 Joseph Bromhead, Westbury, near Bristol. Laundry work (100) ... c. Dissatisfaction of employer with results. 1890-1904 Idris & Co., Ltd., Camden Town, London, Mineral water manufacturers (750) ... p. Depression of trade. N.W. 1890-? William Terrell & Sons, Ltd., Amos Yale, Wire and hemp rope and patent engine- c. Dissatisfaction of employers wich Bristol. packing manufacture (102-118). results. 1^91 I on 1895 j ( Hon. T. A. Brassey, Park Gate, Battle, \ \ Sussex. / Farming (two farms) j ^ C. 1 c.s. / Occupation of farms given up. 1891-94 Phillips & Co , Wrexham ... Teamen and grocers (14) c. Conversion of business into limited company. 1891-1909 Women’s Work Association, Cheltenham... Embroidery, &c. (8) Not known. Liquidation. 1891-99 William Lawrence & Co., Ltd. (formerly Cabinet making, &c. (400) C. Special circumstances connected with William Lawrence), 64, London Road, Nottingham. conversion of business into company. Wholesale produce merchants (25) ... 1891-93(7) Edward Tuke & Co., Bradford and Leeds ... C. Not known. 1891-97 John Barbour & Co., Whitehouse, Bel- fast. Dobson & Barlow, Ltd., Bolton Flax spinning (450) ... C. Bad state of trade. 1891-1906 Engineers (2,800) c. Apathy of employees. 1891-94 Alfred Hickman, Spring Vale Furnaces, Iron smelting (500) c. Dissatisfaction of employer with W olverhampton. results. 1891-1902 Franklyn, Davey & Co., 12, Welch Back, Bristol. Tobacco and snuff manufacture (163) C. Transfer of business. 1891-1900 “G. H.” Manufacture of woollen and worsted goods (200-250). c. Badness of trade. 1891-98 R. H. & S. Rogers, Ltd., 9-12, Addle Street, Wood Street, London, E.C. Shirt and collar manufacturers (1,000) c. Apathy of employees and liabilities imposed by Workmen’s Compensa- tion Act, 1897. 1891-93 Joseph Collard, London ... Printing and stationery (23) c. Dissatisfaction of employer with results. Dissatisfaction of employers with results. 1891-99 Waltham Bros., Ltd., Stockwell, London, S.W. Brewers (133) ... C. P. 1891-95 Crompton & Co., Ltd., Mansion House Buildings, London, E.C. Electrical engineers (500) c. Scheme not taken up by employees generally. 1892-96 Petty & Sons, Ltd., Whitehall Printeries, Leeds and Reading. Printers and manufacturing stationers (223). c. Dissatisfaction of employers with results ; share-purchase system sub- stituted. 1892 Robert Mushet & (Jo., Lonningfcon Iron Works, Leith. Engineers (200) ••• c. Dissatisfaction of employers with results. 1892 Welsh Liberal Newspaper Co., Ltd., Swansea. Newspaper printers and publishers (18) C. or S. Not known. 1892-95 Peel Bros., Lincoln Corn merchants and millers (20-25)... c. Dissatisfaction of employers with results. 1892-97 John Devereux&Sons, High St., Lowestoft. Grocers, &c. (46-05) ... c. Dissatisfaction of employers with results. 1892-94 Raithby, Lawrence & Co., Ltd., Queen Street, Leicester. Printers, &c. (165) c. Voluntary liquidation and recon- struction of company. 1892-94(?) John Rateliffe, 108, St. George’s Road, Bolton. Decorator (15-40) c. Dissatisfaction of employer with results. 1892-94 John Williams & Sons, Ltd., 47, Wilmslow Road, Didsbury, Manchester. Bakers, grocers, &c. (47) c. Dissatisfaction of employers with results. 1892-1903 Unwin Bros., Ltd., 27, Pilgrim Street, Ludgate Hill, London, E.C. Steam printers and stationers (456) ... c. “ Lapsed.” 1892-96 Coombs “ Eureka ” Aerated Flour Co., Ltd., 4, Stanford Street, Nottingham. Prepared aerated flour factors (45) ... c. Dissatisfaction of employers with results. * Number of employees not known. 109 Appendix B.—I.—Cases in which Profit-sharing has been abandoned—(contd.). Duration of Profit- sharing. Name and Address of Firm. • (Certain firms ■who wished to remain anonymous are indicated by letters, chosen at random.) Nature of Business and Number of Employees at date of abandonment of Profit-sharing. How Bonus was paid. (See note at head of Table.) Cause of Cessation ol Profit-sharing. 1892-? “J.K.” Manufacture (70) c. Diminution of profits. 1892-1904 Y. Trotter & Son, Ltd., Chirnside Paper Mills, Berwickshire. Paper manufacturers (302) c. Apathy of employees. 1892-93 Tobacco Corporation, Ltd., London Brush Electrical Engineering Co., Ltd., 49, Queen Victoria Street, London, E.C. Tobacco manufacture (25) c. Liquidation. 1893-1902 Electrical engineering (1315) ... C.P. Dissatisfaction of employers with results. 1893-1912 Jacob Pickwell, Grimsby ... Master Stevedore (4-400) c. Dissatisfaction of employees with system. 1893-99 William Parnall & Co., Ltd., 108, Victoria Street, Bristol. Shop fitters, &c. (45) ... c. Liquidation. 1893-95 The Ideal Club and Restaurant, 185, Tottenham Court Road, London, "YV.C. Restaurant and sale of provisions (20) c. Failure to earn profits. 1893-? Jesse Mundell, Middlesbrough House painter (9-12) c. Not known. 1894-98 William Cussons, Ltd., 18, Beverley Road, Hull. Grocers, provision merchants, &e. (190-200). c. Dissatisfaction of employers with results. 1894-1900 Clark's Bread Co., Ltd., 12, Ponthill Road, Hove, Brighton. Bakers and confectioners (94) c. Dissatisfaction of employers with results. 1894-1909 Richard Briggs & Sons, Ltd., Bankfield Lime Works, Clitheroe. Lime manufacturers and quarry pro- prietors (80). c. Dissatisfaction of employers with results and grant of higher wages. 1895-98 E. Broad, Redruth, St. Austell Draper (150-180) ... c. Information not available for publica- tion. Transfer of business. 1895-97 R. Binns & Son, Cross, near Axbridge ... Fruit-growers and nurserymen (5) ... C.P. 1895-98 Smith & Forrest, Manchester Oil, tar, and resin distillers and mer- chants (30-40). Not known. New responsibilities of employers under Workmen’s Compensation Act, 1897. 1895-9G Wm. Hancock & Co., Ltd., Cardiff Brewers (158) C. Dissatisfaction of employers with results. 1895-97 White Stile Laundry, Brentford Laundry (17) ... Not known. Transfer of business. 1895-96 N. J. Powell & Co., Ltd., 101, Whitechapel High Street, London, E. Vellum binders and pocket - book makers (80-100). C. Changes in business. 1895-99 John A. Hunter & Co. (formerly Butter- with & Hunter), Liverpool. Provision (bacon &c.) merchants (70) C. Changes in constitution of firm. 1896-98 Kensington Co - operative Stores, Ltd., (Dressmaking Department), 64-74, Ham- mersmith Road, London, W. A. Morton & Co., Darvel, Ayrshire Dressmaking, &c. (10-18) P. Liquidation. 1896-1901 Curtain andcarpet manufacturers (681) P. Dissatisfaction of employers with results. 1896-1909 Nottingham Brewery, Ltd., 52-58, Mans- field Road, Nottingham. Brewers (200) C. Diminution of profits. 1896-1907 “ R.F.” Provision merchants (10) C. Substitution of increased wages. 1897-1901 Herbert Hutchinson, Haslemere, Surrey ... Architect and builder (140) ... C.P. Conversion of business into co-opera- tive society. 1897-1903 Richmond Gas Stove & Meter Co., Ltd. (formerley Richmond & Co., Ltd.), Warrington, Stratford, &c. “K.N.” Gas engineers (manufacturers) (820- 870). c.s. Dissatisfaction of employers with results. 1897-1905 Builders (8) c. Bad trade and insufficient profits. 1898-1902 Meath Home Industries Association, Ran- dlestown, Navan. Needlework, embroidery, weaving and knitting (150). c. Conversion of business into co-opera tive society. 1898-1907 “ T.K.” Pencil case makers, silversmiths, &c. (about 150). p. Depression of trade. 1898-1904 Ilford, Ltd. (formerly Britannia Works Co., Ltd.), Ilford, London, E. J. E. Nelson, Sunderland. Manufacturers of photographic plates and papers (250-270). c. Dissatisfaction of employers with results. 1899-1901 Slater and slate merchant (27) c. Apathy of employees. 1900-04 Teasdale & Co., Ltd., South Vale Works, Carlisle. Manufacturing confectioners (320) ... C.P. Diminution of profits owing to Sugar Tax. 1900-03 Young & Marten, Ltd., Stratford, London. Builders’ merchants, &c., manufac- turers, ironfounders, &c. (347). c. Profits did not reach reserved limit. 1900 Madame Veigele, London Vegetarian depot and general agency (6). Timber importers and saw-mill pro- prietors (122). c. Business given up. 1900-10 “A.D.“ c. Dissatisfaction of employers with results. 1900-07 S. Gallery & Sons (formerly Samuel Gallery, Ltd.), Glasgow. Slipper manufacturers (116) ... c. Reconstruction of company. 110 Appendix B.—I.—Cases in which Profit-sharing has been abandoned—(contd.). Duration of Profit- sharing. Name and Address of Firm. (Certain firms who wished to remain anonymous are indicated by letters, chosen at random.) Nature of Business and Number of Employees at date of abandonment of Profit-sharing, How Bonus was paid. (See note at head of Table.) Cause of Cessation of Profit-sharing. 1901-04 Willey & Co., Ltd., Exeter Engineers (500-750) C.P. Dissatisfaction of employers with results. 1903-12 Metcalfe & Cooper, Ltd., Poultry, London General printers, &c. (80-100) C.P. Dissatisfaction of employers with results. 1903-08 “ T.N.,” Glasgow Supply (22) c. Transfer of business. 1904-07 Joseph Bank, Ltd., Hull Flour millers (281) p. Dissatisfaction of employers with results. 1904-05 Douglas Cockerell, Ewell, Surrey ... Bookbinder (3-6) c. Transfer of business. 1905-08 “M.N.” Builders and contractors (30) c. Dissatisfaction of employers with results. 1905-12 E. VV. Harris, 132, Hurst Street, Birming- Scrap metal dealer (20) c. Increased taxation. ham. 1907 Levant Mining Co., Pendeen, Cornwall ... Tin and copper mining (465-523) c. Dissatisfaction of employers with results. 1907-10 Baymond Bros., Manor Boad, Yeovil Cabinet making and upholstering (7) c. Dissatisfaction of employers with results. 1909-10 Irvine’s Ship Building & Dry Docks Co., Shipbuilding (*) c. Dissatisfaction of employees. Ltd., West Hartlepool. 1909-11 Carmarthen Gas Co., Carmarthen Gasworks (19) c. Dissatisfaction of employers with results. 1910-11 Wessex Press, Ltd., Portsmouth Newspaper and letterpress printing c. Liquidation. (50-130). 1910-12 Manufacture (600) P.C. Dissatisfaction of employers with results ; strike. * Number of employees not known. 113 APPENDIX B.—(contd.) II.—Abandoned Schemes summarised by Forms of Bonus Payment and Years in which Schemes were STARTED. How Bonus was paid. Schemes started. Up to 1870. 1871- 1880. 1881- 1890. 1891- 1895. 1896- 1900. 1901- 1905. 1906- 1910* Total. All in cash 1C 10 41 35 10 4 5 121 All to a Provident or Pension Fund, or retained by firm to encourage thrift 3 3 1 7 Part in cash and part retained for provident pur- poses 1 7 3 2 2 D 10 All in shares in the undertaking 3 3 Part in cash and part in shares ... 1 1 1 3 All in shares for a prescribed period or until employee has a prescribed holding; then part in cash and part in shares... 1 1 Part in shares and part retained for provident pur- poses 2$ 2+ Miscellaneous me- thods One— One— 2 Not known 1 1 paid in cash or retained for pro- vident purposes. 4 paid in cash or shares. 3 1 9 Total 17 12 63 43§ ' 1 16 7 6 164§ * No schemes started since 1910 have been reported as abandoned. f Retained for provident purposes until employee lias a prescribed holding; then in cash. J Under one of these schemes part Of the bonus might also be paid in cash. § One employer with two separate forms of bonus payment is included twice in this total. 24548 H APPENDIX B .—(contd. III.—Abandoned Schemes summarised by Causes of Abandonment and Trades. Cause of Abandonment. Number of Schemes in existence at 1st A ugust, 1912. Trade. Apathy of employees and dissatis- faction of employers with results. Diminu- tion of profits, and losses or want of success. Enterprise aban- doned, and liquida- tion or dissolu- tion. Changes in or transfer of business. Substitu- tion of increased wages or shorter hours, or other benefits. Dissatis- faction of em- ployees. Job finished or death of employer. Special circum- stances. Not known. Total. Building trades 3 2 i i i _ i 9 3 Mining and quarrying Metal, engineering, and shipbuilding :— 3 — 2 — — i — 6 Metal 3 2 1 i — — — — i 8 i Engineering and shipbuilding ... 8 3 1 — i i i i i 17 4 Textile trades 4 2 1 — — — — — — 7 7 Clothing trades ... 1 3 5 3 — — — — — 12* 5* Transport ... 1 — — — — i — — — 2 1 Agriculture Printing, paper, and allied trades :— — 3 3 3 — — 2 — i 12 6 Paper making 1 • — — — — — — — — 1 4 Printing, bookbinding, &c 9 3 3 7 i i — : i 25 11 Woodworking and furnishing trades 3 1 2 1 — — — — — 7 3 Chemical, glass, pottery, &c. 2 — — — 3 — — 1 2 8 14 Food and tobacco ... 8 4 2 3 — — — 1 — 18 13 Gas works ... 1 — — — — — — — — 1 33 Electricity supply ... — — — — — — — — — — 2 Other businesses 12 6 4 4 2 — — 1 1 30° 26* Total 59 29 25 22 8 4 4 4 8 163* 133* * No recent particulars are available as regards three schemes which were started (two in the Clothing trades and one in “Other businesses”) to show wh.eth.er they are still in existence or have been abandoned. 115 APPENDIX C. Amounts invested by Employees with Eirms included in Appendix A as at present practising Profit- sharing. As one and the same individual may hold investments of different kinds, duplication in the figures exists and cannot be avoided, in respect of the numbers of employees holding Investments. Amounts invested apart from Profit-sharing arrangements are included. N.B.—P.F. in the column as to Nature of Holding means a Pension or Provident Fund. Name o£ Firm and Date of adoption of Profit-sharing. “J.J.” (1865)........... Fox Bros. & Co., Ltd. (1866). Agricultural and Horti- cultural Association, Ltd. (1873). Women’s Printing So- ciety (1876). Tollesbury and Mersea (Black water) Oyster Fishery Co., Ltd. (1876) Sir W. G. Armstrong. Whitworth & Co., Ltd. (1878). Cassell & Co., Ltd. (1878) “ T.L.” (1881).......... Brooke, Bond & Co., Ltd. (1882). Blundell, Spence & Co., Ltd. (1884). Hazel], Watson & Viney, Ltd. (1886). C.C.” (1889) .. Nature of Business and Number of Employees in 1911. Investments by Employees. No. of Em- ployees holding Manufacture (163) Woollen manufacturers (1,561). Supply and manufacture of artificial manure, oil- cakes, seeds, &c. (195— 325). Printing (53) ........ Oyster merchants and planters (14-83). 175* 239 80 37 195 17 5 466J { Shipbuilding, engineering ■ 2,788§ and ordnance manufac- ture (15,812-15,953). Printing, publishing and bookbinding (1,150— 1,200). Manufacture (230) Tea blending and packing (570-636). Colour, paint and varnish | manufacture, oil boiling! and refining (803-840). t 24 433 64 Printers & bookbinders - (1.400). 207 1,135 608 Supply (18-20) ... Nature and amount of Holding. Deposits, £9,985. Deposits f. Ord. Shares, £203. Deposits, £206. Deposits (P.F.), £261. Ord. Shares, £301. Debenture Stock, £26 Ord. Shares, £11,885. Deposits, £241,432§ Deposits, £5,743. Deposits (P.F.), £2,120. Ord. Shares, £6,130. Ord. Shares, £12190 Deposits, £13,324.|j f 5 °la Cum. Pref. Shares, (P.F.), | £2,370. ! 4°/0 Mortgage De- ll bentures(P.F.), j £1,400 I Ord. Shares (P.F.), £300. I Deposits (P.F.), L £149. Deposits, £182. * Including some ex-employees and widows of former employees. t Particulars not available for publication. J Employed in rotation. § The employees of the Go. have other investments in its securities, as to which figures are not available for publication. || Secured by .£14,500 4 °/0 first mortgage debentures of the Company. 24548 H 2 116 APPENDIX C.—EMPLOYEES’ INVESTMENTS WITH FIRMS NOW PROFIT-SHARING—(COIltd.). • Investments by Employees. Name of Firm and Date of adoption of Profit-sharing. Nature of Business and Number of Employees in 1911. No. of Em- Nature and ployees holding. amount of Holding. Hele Paper Co., Ltd. (1889). i Paper making (223) ... I 2 (158 Pref. Shares, £170. Deposits, £2,244.‘:) “ A.B.” (1889) Manufacturers (1,250) ...' 45 Depusits, £9,521. Robinson Bros., Ltd. Tar distilling (118-144)... 132 Deposits (P.F.), (1889). £2,978. r i 4,767 Ord. Stock, £290,700. South Metropolitan Gas Gasworks (5,534—6,704) 889 Ord. Stock, Co. (1889). £10,790.f 5,534 Deposits, £54,260. Clarke, Nickolls & Manufacturers of confec- 2,500- Debentures & Pre- Coombs, Ltd. (1890). tionery (2,500-2,900). 2,900 ference Shares (P.F.), £37,0004 John Rowntree & Sons Grocers, provision mer- 92 Deposits, £1,676. (1890). chants and restaurant proprietors (100-130). M.M.” (1890) Flour millers (131) 88 Deposits (P.F.), £3,289. Valvoline Oil Co. (Sue- Oil refiners (36) ... 36 Ord. Shares, eessors to Boult Bros. & Co.) (1891). 11 L.M.” (1.892) £30,000. Supply and manufacture 185 Deposits, £19,488. (670). John Sadd & Sons, Ltd. Timber merchants (141- 11 Ord. Shares, £800. (1893). 175). South Suburban Gas Co. Gasworks (618-712) 1514 (599 Ord Stock, £29,603. Ord. Stock, £2.770.f (1894). (Deposits (P.F.), D. Ballantyne & Co. Woollen manufacturers 516 £7,622. (1894). (840). 1 Deposits, £7,213. G. W. Chitty & Co., Flour millers (55-60) ... 57 Deposits (P.F.), Ltd. (1895). £2,966. T. Chalmers & Sons, Paper making (80) 44 Deposits, £994. Ltd. (1895). f 9 Ord. Shares, £7,960. “ P.Y.” (1890) Manufacture (1450-1500) 1 1057 Special Employees’ Shares, £41,073. “ K.K.” (1898) Manufacture (1961-2066) f 5 (678 Ord. Shares, £400. Deposits, £7,380. Wyles Bros., Ltd. (1899) Wholesale boot and shoe 10 Ord. Shares, £530. merchants (250). Poster, Sons & Co., Ltd. Builders and contractors 35 Ord. Shares, £764.§ (1900). (56-80). Spillers & Bakers, Ltd. Millers, corn merchants, 1 57 Deposits, £9,950. (1900). biscuit manufacturers, (306 Deposits (Savings &c. (1350). Bank) £14,188. f Ord. Shares, £50. John Stow, Ltd. (1900) Cabinet making and up- holstering (21-46). 11 j Special Em- 1 ployees’Shares, L £180. ( 42 Ord. Stock, £1,260. Chester United Gas Co. (1901). Gasworks (109-117) I- f Ord. Stock, J Vb30 + 1 Deposits, £8494 * Partly Provident Fund. f Held by Trustees on behalf of employees. + Market value ; the nominal value of securities cannot be stated. § Held through “ Foster’s Employees, Ltd.," see pp. 49-52. APPENDIX C.—EMPLOYEES’ INVESTMENTS WITH FIRMS 117 NOW PROFIT-SHARING—(COiltd.). Name of Firm and Date of adoption of Profit-sharing. Commercial Gas Co. (1901). Morris & Bolton, Ltd. (1902). “ B.B.” (1902).......... “ M.R." Manchester (1903). P. & C. Garnett, Ltd. (1903). John Knight, Ltd. (1904). Hay & Son, Ltd. (1905). Mackenzie & Storrie, Ltd. (1905). Henry Sagar, Ltd. (1906) Mail & Leader, Ltd., (1906). W. J. Parry, Ltd., (1907) Douglas & Son, Ltd., (1907). Gilbert Bros. (1907) ... A. C. Penman (1907) ... Prudential Assurance Co., Ltd. (1907). Leamington Priors Gas Co. (1908). Wrexham Gas Co. (1908) * Held by Trustees % Held through “ G Investments by Employees. Nature of Business and Number of Employees in 1911. No, of Em- ployees bolding-. Nature and amount of Holding. 746 1,234 Priuting ink manu- facturers (45-50). Manufacture and supply (81). Supply (125) ........ Ironfounders and machine makers (140). Soap manufacturers (581^659). Wine and spirit merchants (50). Printers, lithographers and stationers (14). Dyers and finishers (80) Newspaper publishers (272). General merchants (7) ... Musical instrument manu- facturers and specialists (14). Boot manufacturers (92) Motor carriage manufac- turing (90-100). Issue of insurances and annuities on lives (20,664). Gasworks (116-135) Gasworks (64) 5 44 17 ( 3 f 48 518 80 114 4 11 66 13 104 ( 4 °la Capital ) Stock, £20,005. ) 3i °/0 Capital ( Stock, £7,215. ' 4 °/0 Capital Stock, £1,205.* <j 3h °/0 Capital Stock, £250.* ( Deposits, £18,605. C Ord. Shares, £400. •{ Special Em- ployees’ Shares, l £ 1,300-t Staff Shares, £19,710. (£15,087 paid up). Ord. Shares, £10,350. Deferred Ord. Shares, £400. Debentures, £300. Ord. Shares, £2,967. Ord. Shares, -F9 * Ord. Shares""'(10/- paid), £154. Deferred Shares, £424. ; Ord. Shares, £950. Cum. Prof. Shares, £1,160. Ord. Shares, £690. Ord. Shares, £260. Ord. Shares, £4,005. Ord. Shares, £50. Special employees’ Shares, £263. Shares (in Capital of business),£100. J Deposits, £280. Ord. Shares, £39,015. Ord. Stock, £570. Debentures, £490. Deposits, £666.* Deposits, £458. Ord. Stock, £640, I Deposits, £568. * I Deposits, £934. on behalf of employees. ilbert Brothers, Employees, Ltd.,” f Given free. see pp. 46-49. 118 APPENDIX C.—EMPLOYEES’ INVESTMENTS WITH FIRMS NOW PROFIT-SHARING—(COlltd.). Name of Firm and Date of adoption of Profit-sharing. Epsom & Ewell Gas Go. (1908). Lord Rayleigh (1908) ... Rugby Gas Co. (1908)... Tunbridge Wells Gas Go. (1908). Bournemouth Gas & Water Co. (1908). Cardiff Gas Light & Coke Co. (1908). Gloucester Gas Light Co. (1908). Walker & Wallsend Union Gas Co. (1908). Wellingborough Gas Light Co., Ltd. (1908). Investments by Employees. Nature of Business and Number of Employees in 1911. No. of Em- ployees holding. Gasworks (59-83) / 30 l 46 Farming (300) ... 219 Gasworks (51-71) 42 ' 6 Gasworks (135) 135 53 f 107 1 Gasworks (500-609) J 1 396 l ( 88 Gasworks (500-600) / 98 \ 233 Gasworks (119-127) 113 Gasworks (113) 79|| 29 ' 4 Gasworks (03) ... 61 I . 42 Nature and amount of Holding. Ord. Stock, £300. Deposits, 480. Deposits, £2,894. (10 °l0 Standard j Ord. Shares, £l40.*f 7 °/0 Standard Ord. Shares, ( £40.*f Consolidated C. Stock (7 °la Stan- dard), £60. 'Consolidated C. Stock (7 °/Q H Standard), £500.f „ Deposits, £623.f Deposits, £229. 7 \ “ B.” Ord. Shares. £1,8104 (7 X ‘ B” 0rd’ ^ Shares, £2,610f§ l Deposits, £473.f Deposits, £369. Ord. Stock, £1,827. Deposits, £1,175. / Deposits, £608.f \ Deposits, £995. '3J °/0 Standard Consolidated Stock, £877. 5 °/o Standard Ord. Stock, < £175. Pref. Stock, £110. Debentures, £137 „Deposits, £184.-j" Deposits, £58. 10 “ £5 Original” and 13 ‘‘£10 Ad- ditional ” Shares, £180. f 20 “£5 Original” | and 1 “ £10 ■’ Additional” Shares,£110.f1f (Deposits, £546. Deposits (P.F.), £1,545. * The amounts held of the two classes of Shares represent an investment of £584. t Held by Trustees on behalf of employees. X Stated to be of an estimated market value of £3,063. § Stated to be of an estimated market value of £4,282. |l Some of these employees hold more than one class of Stock. If Representing an investment of £314. APPENDIX C.—EMPLOYEES’ INVESTMENTS WITH FIRMS 119 NOW PROFIT-SHARING—(COIltd.). Name of Firm and Dato of adoption of Profit-sharing. Tottenham & Edmonton Gas Light & Coke Co. (1908). Strutt & Parker (1908) Croydon Gras Co. (1908) Weston-super-Mare Gas- light Co. (1909). Gas Light and Coke Co. (1909). Grantham Gras Co. (1909) Westminster Electric Supply Corpn., Ltd. (1909). Lever Bros., Ltd. (1909) Barratt & Co., Ltd. (1909). Cambridge University & Town Gas Light Co. (1909). Cotton Powder Co., Ltd. (1909). City of Waterford Gas ! Co. (1909). * * * § ** Nature of Business and Number of Employees in 1911. Gasworks (620-650) Farming (80) Gasworks (544-608) Gasworks (109-140) Gasworks (11,893- 13,532) j l Gasworks (50-64) Supply and distribution of electric energy (350 -412) r i Soap manufacturers -J (“ over 9,000 ”)|| ^ Manufacturers of confec- tionery (1,500-2,000). Gasworks (210-242) Manufacture of cordite, guncotton, &c. (384). Gasworks (70-90) Investments by Employees. No. of Em- Nature and ployees holding. amount of Holding. 1 (468 Ord. Stock, £7,395. ( Ord. Stock, ^ 606 ) £1,260* j Deposits, £4,087. i- ( Deposits, £1,891* 27 Deposits, £820. ( 364 1554 Stock, £3,420.f / Stock £2,650 * \ Deposits, £2,683* f 9 Ord. Stock, £45. \ 147 Ord. Stock, £150* ( 72 Deposits, £333.* 7,069 Ord. Stock, £41,1904 9,257 Ord. Stock, £22,220.* 9,000 Deposits, £15,997. 5,300 Deoosits, £10,700.§ 2,800 Deposits, £6,100.§ 360 Deposits, £10,950.§ 900 Deposits, £53.§ Ord. Stock, £87. ( Ord Stock,£110.® | Deposits, £105. ( 5 Ord. Shares, £755. 16 Cum. Pref. Shares, £1,365. ( 273 Deposits, £2,932. Partnership Certi- 1,749 IT II ficates, £298,731. 118 Pref. Shares, £80,780. 1,089 Deposits,£15.788** 50 Cum. Pref. Shares, £1,300. f 145 “O” Stock, £1,080. 4 150 “C” Stock, £245* (142 Deposits, £319. f Ord. Shares, £10. 252 -J Ord. Shares, ( £215* f 5 Ord. Shares, £50. l 68 Deposits, £367.* * Held by Trustees on behalf of employees. + Stated to be of an estimated market value of £4,207. J In addition to this £16,370 Ord. Stock is held by 815 Staff Officers. § These four amounts are Deposits by the Indoor Workmen’s Society, the Outdoor Workmen’s Society, the Officers’ Mutual Insurance Society, and the Employees’ Slate Clubs respectively. || Including the employees of certain associated companies of Lever Bros., Ltd. If Including 301 employees outside the United Kingdom. ** It should be understood that this amount includes private savings as well as dividends on Partnership Certificates, and also deposits of employees who are not Co-partners, and of certain members of the Co-partners’ families. 120 APPENDIX C.—EMPLOYEES’ INVESTMENTS WITH FIRMS NOW PROFIT-SHARING—(contcl.). Investments by Employees. Name of Firm and Date of adoption of Profit-sharing* Nature of Business and Number of Employees in 1911. No. of Em- Nature and ployees holding amount of Holding, r fOrd. 11B” Stock, 1 6 7 £365. Ilford Gas Go. (1909) ... Gasworks (197-207) ... j ( Ord. “C” Stock, £570. 159 Deposits, £1,596. ' 71 3£"/ “B” Stock, £1,070. f3£7„“B” Stock, Watford Gas & Coke Co. Gasworks (115-130) -< (1909). 100 { £395 * ( Deposits, £500.w ( Consolidated Hartford Gas Co. (1909) Gasworks (42-55) 37 J. Stock, £200.* ( Ord.Stock,£285* Enfield Gas Co. (1909)... Gasworks (171) / 60 (145 Ord. Stock, £358. Deposits, £396.* Wilkin & Sons, Ltd. Jam manufacture— ) (1910). In Factory (140-200) ( 40 Employees’ Pref. r Shares, £551. On Farms (80-800)... ) 83 Deposits, £350. Hasler & Clapham (1910) Corn merchants and 32 Deposits, £422. farmers (47). Wnlford, Hasler & Co., Coal merchants (21) 1 Deposits, £100. Ltd. (1910). Longwood Gas Co. (1910). Gasworks (61-76) 39 / Deposits, £97.* \ Deposits, £78. r ii2 i 3J °/0 Ord. “C.” Stock, £640. Wandsworth & Putney Gasworks (500) ... -( 360 1 3£ °la Ord. 110.” Gaslight & Coke Co. Stock, £1,275* (1910). Merthyr Tydfil Gas Co. l 12 Deposits, £66. Gasworks (55-73) 35 Deposits, £71.* (1911). Bussells & Wrangham, Brewers and millers (£) ... 30 Shares, £300. Ltd. (1911).f f 7 Ord. Stock, £50. Plymouth & Stonehouse Gasworks (346-378) |299 ( Ord.Stock,£304* Gas Light & Coke Co. \ Deposits, (1911). £1850* f f First Cum. 5 °/0 Pref. Shares, Johnson Bros. (Dyers), Dyers and dry cleaners 7 -i and “A.” Cum. Ltd. (1911). (1,918). 1 5£ °/0 Pref. 573 f Shares, £2025. Deposits, £3,714. f 52 Bonus Certificates, Loders & Nucoline, Ltd. Oilseed mills (375) \ £98. (1911). l 42 Deposits, £1,658. Harrow & Stanmore Gas Gasworks (101-130) 89 Deposits, £270. Co. (1912). Wilkinson & Riddell, Ltd. (1912). Textile merchants (325) ( 35 1 10 Ord. Shares,£4,660. Pref.Shares,£2,835. “ O.O.” (1912) ... Rag merchants (11) { Ord. Shares, £1,001. Deposits, £374. Hold by Trustees on behalf of employees, t Details based on press notices. t Number of employees not known. APPENDIX D. Firms included in Appendix B as having abandoned Profit-sharing who made arrangements for receiving Investments from Employees, and the nature of such Investments. N.B.— P.F. in the column as to Nature of Investment means a Pension or Provident Fund. Name of Firm. Nature of Business and Number of Employees at date of abandonment of Profit-sharing. Nature of Investment. Duration of Scheme. Cause of Cessation of Profit-sharing. Henry Briggs, Son & Co., Ltd. Coal mining (1203) ... Shares 1865-75 Dissatisfaction of employees. Greening & Co., Ltd. Wire netting, &c., manufacture* Shares 1865-68 Liquidation. South Buckley Coal and Fire Brick Coal mining and fire brick making* Shares 1866-? Liquidation. Co., Ltd. Cobden Memorial Mills Co., Ltd. ... Cotton manufacture* Shares 1866-87 Liquidation. Wardle, Blythe & Co. Pottery manufacture* Shares 1867-? Not known. Price’s Patent Caudle Co., Ltd. ... Candle manufacture (900) Shares 1868-72 Substitution of shorter hours. North of England Industrial Coal and Iron Co., Ltd. Coal and iron mining and iron smel- ting.* / Shares 1870-? Dissatisfaction of employers with results. Benjamin Collins ... Bookbinding (200) Shares (in Capital of business). 1871-77 Dissatisfaction of employer with results. Hamilton & Co., Ltd. (previously Hamilton & Co.) Shirt, collar and underlinen manufac- ture, dressmaking and millinery (50). Deposits (P.F.) and Shares (in Capital of business). 1876-91 Liquidation. Wm. Jacks & Co Iron merchants (38) Deposits 1880-1907(?) Substitution of bonus giving. Holmes & Co. Coach making (14) ... Deposits (P.F.) 1881-99 Want of financial success. Decorative Co-operators’ Associa- tion, Ltd. (afterwards D’Oyly & House painting and decorating (60-70) Shares and Deposits (P.F.) 1883-93 Liquidation. Co., Ltd.) Perrott & Perrott, Ltd. Packers, elothworkers & finishers, &c. (110-120). Deposits 1884-1900 Dissatisfaction with results and apathy of employees. * Number of employees not known. Appendix D.—Firms included in Appendix B as having abandoned Profit-sharing who made ARRANGEMENTS FOR RECEIVING INVESTMENTS FROM EMPLOYEES, AND THE NATURE OF SUCH Investments—(contd.). Name of Firm. Nature of Business and Number of Employees at date of abandonment of Profit-sharing. Nature of Investment. Duration of Scheme. Cause of Cessation of Profit-sharing. Working Women’s Co-operative As- sociation, Ltd. Shirt and dressmaking* Shares 1885-87 Want of success ; business trans- ferred. Needlewomen’s Co-operative Asso- Underlinen, &c., manufacture (60) ... Shares 1885-94 Want of success ; dissolution. ciation, Ltd. Earl Spencer ... Farming (11) ... Shares (in Capital of business). 1886-97 Want of success. Earl Grey Farming (85) ... ... Deposits 1886-1903 Farms let ; or transition from one form of cultivation to another. “ G.R.” Engineers (100),.. Deposits (P.F.) 1887-1909 Not known. Circle Co-operative Printers’Society, Ltd. (formerly Circle Co-operative Printing and publishing (5) Deposits (P.F.) and Shares. 1887-96 Dissolution. Printing Co.). Coventry Gas Fitting, Electrical and Gas, electrical and general engineers(41) Deposits (P.F.) 1888-1900 Liquidation. Engineering Co., Ltd. (formerly Coventry Gas Fittings Co., Ltd.). Binns & Co., Ltd Oatmeal and corn factors, seedsmen, &c. (11-13). Shares... 1888-1908 Liquidation. Richard Binns Fruit farming (4-34) Deposits 1888-99 Want of success. Guild of Handicraft, Ltd Furniture makers, metal workers, &c (15-25). Shares... 1888-1908 Liquidation. Sampson Low, Marston & Co., Ltd. Booksellers and publishers (70) Shares... 1889-1904 Liquidation. JNew Welsh Slate Co., Ltd.. Slate quarrying (231) Shares... 1889-99 Liquidation. W. D. & H. 0. Wills, Ltd Tobacco manufacture* Deposits 1889-1902 Transfer of business. Christopher Thomas & Bios., Ltd. Soap and candle manufacture (277) ... Deposits ... ... 1889-1901 Substitution of shorter hours j Robert Martin Printing (14) Deposits (P.F.) 1890-1900 Newman & Son Printing (26) ... Deposits 1890-1903 Cardiff Milling Co. (formerly James Millers (120) Deposits 1890-98 Tucker, Ltd.). Charles Joyner & Co. Chandelier, &c., manufacturers (250) Deposits (P.F.) 1890-94 G. Holloway “ F.N.” Farming (*) ... Deposits 1890-92 Engineers (1,185) W orkmen’siDebentures 1890-1909 Osborne & Young Corn merchants, flour factors and Deposits 1890-1903 forage merchants (94). Robert McVitie Baker and confectioner (65-70) Deposits (P.F.) 1890-98 Idris & Co., Ltd Mineral water manufacturers (750) ... Preference Shares and 1890-1904 Deposits (P.F.) Hon. T. A. Brassey ... Farming (two farms) ... j ^ (1) Deposits (2) Shares and De- 1891-99 1895-99 Phillips & Co. ... posits (P.F.). Teamen and grocers (14) Deposits 1891-94 William Lawrence & Co., Ltd. (for- merly William Lawrence). Cabinet-making, &c. (400) Deposits 1891-99 Dobson & Barlow, Ltd Engineers (2,800) Debentures ... 1891-1906 Alfred Hickman ... Iron smelting (500) Deposits 1891-94 “ G.H.” Manufacture of woollen and worsted Deposits 1891-1900 goods (200-250). R. H. & S. Rogers, Ltd Shirt and collar manufacturers (1,000) Deposits 1891-98 Crompton & Co., Ltd. Electrical engineers (500) W orkmen’s Debentures 1891-95 * Number of employees not known. Dissatisfaction of employer with results. Transfer of business. Liquidation. Conversion of business into limited company. Death of employer. Diminution of profits. Dissatisfaction of employers with results. Business converted into a limited company, a number of employees taking shares. Depression of trade. | Occupation of farms given up. Conversion of business into limited company. Special circumstances connected with conversion of business into company. Apathy of employees. Dissatisfaction of employer with results. Badness of trade. Apathy of employees and liabilities imposed by Workmen’s Com- pensation Act, 1897. Scheme not taken up by employees generally. to w hdF- i Appendix D.—Firms included in Appendix B as having abandoned Profit-sharing who made arrange- ments FOR RECEIVING INVESTMENTS FROM EMPLOYEES, AND THE NATURE OF SUCH INVESTMENTS—(COIltd.). Name of Firm. Nature of Business and Number of Employees at date of abandonment of Profit-sharing. Nature of Investment. Duration of Scheme. Cause of Cessation of Profit-sharing. Petty & Sons, Ltd. ... ... Printers and manufacturing stationers (223). Shares... ... 1892-96 Dissatisfaction of employers with results ; share-purchase system substituted. Welsh Liberal Newspaper Co., Ltd. Newspaper printers and publishers (18) Shares... 1892 Not known. Raithby Lawrence & Co., Ltd. Printers, &c. (165) ... Shares... 1892-94 Voluntary liquidation and recon- struction of company. Unwin Bros , Ltd. ... Steam printers and stationers (456) ... Deposits 1892-1903 “ Lapsed.” William Parnall & Co., Ltd. Shopfitters, &c. (45) Debentures ... 1893-99 Liquidation. William Cussons, Ltd. Grocers, provision merchants, &c. (190-200). Shares... 1894-98 Dissatisfaction of employers with results. Clark’s Bread Co., Ltd. Bakers and confectioners (94) Shares... 1894-1900 Dissatisfaction of employers with results. Richard Briggs & Sons, Ltd. Lime manufacturers and quarry pro- prietors (80). Co-partnership Certi- ficates. 1894-1909 Dissatisfaction of employers with results and grant of higher R. Binns & Son Fruit growers and nurserymen (5) ... Deposits (P.F.) 1895-97 Transfer of business. Kensington Co-operative Stores, Dressmaking, &c. (10-18) Deposits (P.F.) 1896-98 Liquidation. Ltd. (Dressmaking Department). A. Morton & Co. ... Curtain and carpet manufacturers(681) Deposits 1896-1901 Dissatisfaction of employers with results. Herbert Hutchinson Architect and builder (140) ... Deposits (P.F.) 1897-1901 Conversion of business into co- operative society. Richmond Gas Stove & Meter Co., Ltd. (formerly Richmond & Co., Gas engineers (manufacturers) (820-870). Preference Shares ... 1897-1903 Dissatisfaction of employers with results. Ltd.) “ T.K." Pencil case makers, silversmiths, &c. Deposits (P.F.) 1898-1907 Depression of trade. Teasdale & Co., Ltd. Manufacturing confectioners (320) Deposits (P.F.) 1900-04 Diminution of profits owing to Sugar Tax. “ A.D.” Timber importers and saw-mill pro- prietors (122). Deposits (P.F.) 1900-10 Dissatisfaction of employers with results. Willey & Co., Ltd Engineers (500-750) ... Deposits 1901-04 Dissatisfaction of employers with results. Metcalfe & Cooper, Ltd General printers, &c. (80-100) Deposits (P.F.) 1903-12 Dissatisfaction of employers with results. Joseph Rank, Ltd Flour millers (281) Deposits (P.F.) 1904-07 Dissatisfaction of employers with results. Raymond Bros Cabinet making and upholstering (7) Deposits 1907-10 Dissatisfaction of employers with results. Irvine’s Ship Building and Dry Docks Co. Ltd. Shipbuilding (*) Preference Sharesf ... 1909-10 Dissatisfaction of employees. “ P.P.” Manufacture (600) Deposits! ; Deposits (P.F.) 1910-12 Dissatisfaction of employers with results ; strike. | * Number of employees not known. t These Shares carried no votes. J Scheme required Bonus up to £5 to be accumulated. 126 APPENDIX E. Ratio of Bonus to Wages under Profit-sharing Schemes, 1901-1911 (so far as reported). Ratio of Bonus allotted to Wages in cases referred to in Cols. 2 and 5. (1.) 1901. 1902. Num- ber of Distri- butions (2.) Number of Em- 1 ployees. 1 (3.) Number of Par- ticipants. (4.) Num- ber of Distri- butions (5.) Number 1 of Em- j ployees. (6.) Number of Par- ticipants. (7.) Nil 7 1,761 8 2,548 Under 1 per cent. — — — 1 117 113 1 and under 2 per cent.... 3 247 141 • — — 2 3 ... 7 1,621 1,301 6 757 620 3 „ 4 „ ... 9 7,199 4,702 8 536 419 4 „ 5 „ 8 1,544 928 6 3,479 2,273 5 „ 6 „ 7 2,728 2,046 10 3,729 2,066 6 „ 8 „ 4 820 742 5 6,478 4,877 8 „ 10 „ ... 3 434 73 2 117 110 10 „ 12 „ ... 2 831 362 5 467 455 12 „ 16 „ ... 3 2,163 1,479 1 2,000 1,361 16 „ 20 „ ... — — — — — — Over 20 per cent. 1 87 42 1 93 49 Average Bonus, taking into account the number of >• 5'0 per cent on wages. 5 • 9 per cent, on wages. participants in each case. 1903. 1904. Nil 9 1,989 12 2,203 Under 1 per cent. 1 124 119 — — — 1 and under 2 per cent.... 2 334 334 5 1,154 1,093 o R 7 1,148 819 5 18,640 2.813 3 „ 4 ,, 7 994 880 6 1,532 1,260 4 ,, 5 ,, 4 1,293 814 6 1,283 869 5 „ 6 „ G 3,663 2,283 4 2,724 1,946 6 „ 8 „ ... 7 7,930 6,077 6 2,360 1,405 8 „ 10 „ ... 1 108 108 3 5,787 5,132 10 „ 12 „ ... 3 165 163 2 170 170 12 „ 16 „ ... 1 381 28 1 47 44 16 „ 20 „ ... — — — — — — Over 20 per cent 2 2,153 1,442 2 2,109 1,609 Average Bonus, taking into account the number of >6*8 per cent, on wages. 6 • 5 per cent, on wages. participants in each case. 1905. 1906. Nil 6 1,934 _ 9 2,313 Under 1 per cent. — — — — — — 1 and under 2 per cent,... 4 683 609 4 968 862 2 „ 3 „ ... 6 22,572 3,049 6 19,938 3,024 3 ,, 4 ,, 6 761 656 4 856 492 6 1,793 1,147 6 1,686 1,075 5 „ 6 „ 7 2,875 1,905 8 2,532 1,994 6 8 ... 5 1,571 1,459 6 2.261 1,837 8 „ 10 „ ... 3 5,815 5,046 3 6,024 5,435 10 „ 12 „ ... 5 3,625 2,812 4 581 275 12 „ 16 „ ... 3 548 206 5 1,574 1,205 16 „ 20 „ ... — — — 2 2,449 1.670 Over 20 per cent 1 106 53 1 112 53 Average Bonus, taking into account the number of > 6 • 5 per cent, on wages. 7 • 1 per cent, on wages. participants in each case. 127 Ratio of Bonus to Wages under Profit-sharing Schemes, 1901-1911 (so far as reported)—(contd.). r Ratio of Bonus allotted to Wages in cases referred to in Cols. 2 and 5. (1.) 1907. 1008. Num- ber of Distri- butions. (2.1 Number of Em- ployees. (3.) Number of Par- ticipants, (4.) Num- ber of Distri- butions. (5.) Number of Em- ployees. (6.) N umber of Par- ticipants. (7.) Nil 8 2,582 10 1,987 Under 1 per cent. 1 1,200 1,100 i 1,200 1,100 1 and under 2 per cent.... 3 606 559 2 258 247 2 „ 3 „ ... 6 712 627 7 20,534 15,347 3 „ 4 ... 6 19,786 3,131 6 14,688 2,470 4 1,634 728 5 1,828 1,141 5 „ C 5 2,244 1,956 12 4,541 3,959 6 „ 8 11 8,663 7,594 9 8,231 7,541 8 „ 10 „ ... 2 545 228 1 131 78 10 „ 12 4 1,543 1,087 5 581 222 12 „ 1G „ ... 2 92 89 3 2,639 1,899 10 „ 20 2 2,356 1,766 — — — Over 20 per cent. 1 119 56 1 120 55 Average Bonus, taking into account the number of )- 6 • 0 per cent, on wages. 4 • 5 per cent, on waees. participants in each case. 1909. 1910. Nil 10 2,140 9 2,194 Under 1 per cent. 2 1,895 1,621 2 429 315 1 and under 2 per cent.... 2 15,994 2,180 6 15,427 3,471 2 ,, 3 ,, 5 242 235 4 428 207 3 4 „ 9 21,816 18,460 11 14,250 10,894 4 , 5 „ ... 10 1,609 957 10 22,587 18,974 5 „ G „ ... 13 5,092 4,507 16 3,522 2,869 6 „ 8 „ ... 12 9,515 8,285 16 5,099 3,289 8 „ 10 „ ... 1 57 50 7 10,308 8,342 10 „ 12 2 51 39 2 55 42 12 „ 16 „ ... 2 2,605 1,854 1 2,850 1,885 1G „ 20 „ ... 2 634 634 1 112 112 Over 20 per cent. 1 112 59 1 113 6! Average Bonus, taking into account the number of > 4'8 per cent, on wages. 5'0 per cent, on wages. participants in each case. 1911. Nil... 17 3,567 _ Under 1 per cent. 2 511 399 Average ' 1 and under 2 per cent.... 3 15,974 2,322 Bonus for 2 „ 3 „ ... 2 265 207 1901 11, 3 „ 4 11 14,954 10,657 TAKING 4 ,, 5 14 3,175 2,310 INTO 0-0 per 5 ,, G ,, 12 22,225 19,220 Account i- cent. 6 8 ... 25 9,502 5,847 THE on 8 „ 10 „ ... 6 8,456 7,610 NUMBER of wag-es 10 „ 12 „ ... 4 3,762 2,660 Partici- 12 „ 16 „ ... 3 157 145 PANTS IN 16 „ 20 „ ... — — — EACH CASE. Over 20 per cent 1 Ill 66 Average Bonus, taking into account the number of >5*5 per cent, on wages. participants in each case. APPENDIX F. General Form for a Simple Profit-sharing Scheme : Cash Bonus. (Reprinted from Profit-sharing and the Labour Question, by T. W. Bushill,* pp. 233-237.) (1.) Method of Profit-sharing.—From and after the 1st of January, 1890, the surplus (if any) of the clear profits of the business beyond such definite sum as is for the time being reserved to the firm for their own benefit (herein-after referred to as the “ reserved limit ”) shall be divided into two equal parts, one thereof to be distributed gratuitously as a bonus to the employees in the manner defined by these rules, and the other to be retained by the firm. (2.) The “ Reserved Limit.”—The present reserved limitf has been communicated confidentially to , chartered accountant, and will not be altered for the first three years, if the scheme so long subsists. Thereafter it may be raised or reduced by the firm, but (unless altered during some month of January) not so as to affect the distribution of profits for the financial year current at the time of alteration. Notice of any alteration will be given to the employees in such manner as to let them know how far such alteration would have affected the last preceding distribution had it then been in force. (3.) Accountant’s Certificate.—The accounts of the business will be audited each year by a chartered accountant, who will certify to the employees the bonus (if any) to which they are entitled. (4.) Qualifications for Profit-sharing.—The employees entitled to share in the profits for any financial year are such only as were employed at the commencement of such year, and have furnished a request to be entered on the list of profit-sharers. The acceptance of the terms herein offered is not to be in any way a condition of employment or of promo- tion. Profit-sharers will be free to become or remain members of any trade or friendly society. (5.) Duration of Scheme.—The scheme is to continue in force only until the firm give notice to the employees putting an end thereto, but such notice, unless given during some month of January, will not take effect until the end of the financial year current at the time it is given. (6.) Method of Distribution.—-The employees’ share of profits accruing in each financial year is (subject as after mentioned) to be distributed among them in proportion to their respective salaries or wages at the commencement of such year, taken for one week, exclusive of premiums, overtime, or other variable allowances. In making any year’s distribu- tion it shall be permissible to the firm to carry forward undivided to the credit of the following year’s employees’ share of profits any sum which, if divided, would have given to them less than one week’s wages, calcu- lated as aforesaid. (7.) Payment of Bonus.—Each employee’s bonus shall, within two months of the end of the financial year, be paid into his account at some savings bank, and will then become his absolute property. (8.) Employees leaving.—An employee whose service ends by notice given on either side, by illness, or by death, will have a right to bonus for the financial year in which his service ends, in proportion to the portion of the year elapsed to the end of the month preceding the end of his service. Any employee leaving under circumstances other than before mentioned shall lose such right. Any sum lost to an employee under this rule does not accrue to the firm, but goes wholly to increase the distribution to the other employees. * London: Methuen & Co., 1893. t It !s very desirable that some intimation of the possible benefit to the employees should be given when the scheme is introduced. A simple style of communication would be: “ It the profits during the present year equal the average of the past three years, there would be a bonus equal to weeks’ wages for each participant." (T.W.B.) 129 [general form for profit-sharing scheme : CASH BONUS. (9.) Proviso in Event of Damage.—If an employee ceases to be in the service of the firm by reason of any wilful act or default on his part causing loss or damage to the firm, or is at the time indebted to the firm, his bonus shall be applied to making good such loss or damage or to payment of such debt. (10.) Partnership not conferred.—The employees or any of them will have neither the rights nor liabilities of partnership; nor are they to intermeddle or be concerned in the management or the accounts of the business. (11.) Alteration of Pules.—Alterations or modifications of these rules, which experience may suggest as desirable, may from time to time be made by the firm; but such changes, unless made during some month of January, are not to take effect until the end of the financial year current at the time they are made. (12.) Definitions.—In these rules, words importing the masculine gender include also females: “ Firm ” includes the present members of the firm, as also any person or persons succeeding to the business; “ Business ” means the business of the firm, whatever changes may take place in the nature or branches of such business or places where the same is carried on; “ Financial year ” means the year from the 1st of January to the 1st of January; “ Scheme ” includes all relations between the firm and employees under these rules. Dated this day of 1890. (Signed) [Form of Request under Rule 4.] To Messrs. -18 . I beg to request you to place my name on the list of profit-sharers, and I hereby agree to accept tho rules for the time being of the profit- sharing scheme. (Signed) Name (in full)------------------------------------- Address (in full) -------------------------------— This form should be handed to the firm on or before February 1st. [Form of Accountant’s Certificate, Rule 3.] -------------------------18 . I have examined the Balance-Sheet and Profit and Loss Account of Messrs. for the year ending 31st December, 1890, and also the Wages Inst for January, 1890, and certify that under the rules of the “ Profit-sharing Scheme,” the bonus permits of a dis- tribution of weeks’ wages for each participant, and that there remains an undivided balance equivalent to about days’ wages to be carried forward to the credit of the Employees’ Bonus Fund of next year. 24548 Chartered Accountant. I 130 APPENDIX F: APPENDIX G. Some Alternative Rules. An alternative “ Method of Profit-sharing ” found to be preferable in some cases, e.g., with rapidly growing businesses. The actual percentage can, if desired, be communicated confidentially to a chartered accountant; but in such a case it would be advisable to give the employees some intimation of the addition to ordinary wages it will be possible for them to earn. (1.) In lieu of Rules 1 and 2 above:—Prom and after the 1st of January, 1890 per cent, of the clear profits of the business will be distributed gratuitously as a bonus to the employees in the manner defined by these rules. An alternative “ Method of Distribution,” suitable to businesses in which the majority of the employees are piece-workers. (6.) In lieu of Rule 6 above:—The employees’ share of profits accruing in each financial year is (subject as after mentioned) to be distributed among them in proportion to the respective salaries or wages earned by them during such year. If this alternative rule he adopted, the last clause in the first sentenoe of Rule 8 above (commencing “ in proportion to ”) should be omitted. APPENDIX Gr. RULES OF THE PROFIT-SHARING SCHEME FORMERLY IN force with Messrs. Thomas Bushill and Sons, Manufacturing Stationers, Coventry ; Cash Bonus and Provident Fund.* (Reprinted from Profit-sharing and the Labour Question, by T. VV. Bushill, pp. 206-212.) (1.) Method of Profit-sharing.—From and after the 1st of September, 1888, the surplus (if any) of the clear profits of the business beyond such definite sum as is for the time being reserved to the firm for their own benefit (herein-after referred to as the “ reserved limit ”) shall be divided into two equal parts, one thereof to be distributed gratuitously as a bonus to the employees in the manner defined by these rules, and the other to be retained by the firm. (2.) The “ Reserved Limit.”—The present reserved limit has been com- municated confidentially to Mr. Charles J. Angus, 43, Finsbury Circus, London, E.C., Chartered Accountant, and will not be altered for the first three years if the scheme so long subsists. Thereafter it may be raised or reduced by the firm, but (unless altered during some month of Sep- tember) not so as to affect the distribution of profits for the financial year current at the time of the alteration. Notice of any alteration will be given to the employees in such manner as to let them know how far such alteration would have affected the last preceding distribution had it then been in force. (3.) Accountant’s Certificate.—-The amount (if any) available for dis- tribution will each year be certified by a chartered accountant and will be communicated to the employees. (4.) Qualifications for Profit-sharing.—The employees entitled to share in the profits for any financial year are such only as at the commencement of such year on the 1st day of September were members of the sick club, and have on or before that date delivered to the firm’s cashier for the time being a certificate or other satisfactory evidence of age, and a request to be entered on the list of profit-sharers. (5.) Duration of Scheme.—The scheme is to continue in force only until the firm give notice to the employees putting an end thereto; but * The firm (now T. Bushill & Sons, Ltd.) subsequently wished to transfer the Provident Fund to the National Debt Commissioners. The Commissioners, however, were unable to accept it as a trust fund, and the firm consequently decided to discontinue the fund and pay the whole bonus in cash. RULES OF MESSRS. THOMAS BUSHILL & SONS. 131 such notice, unless given during some month of September, will not take effect until the end of the -financial year current at the time it is given. (6.,l Method, of Distribution.—The employees’ share of profits accruing in each financial year is (subject as after mentioned) to be distributed among them in proportion to their respective salaries or wages at the commencement of such year, taken for one week, exclusive (1) of pre- miums, overtime, or other variable allowances; or (2) of loss caused by short time. As to employees who are piece-workers, such week’s wages in the case of each such worker is to be arrived at (exclusively as afore- said) by averaging the wages earned by him during the last month of the preceding financial year. In making any year’s distribution it shall be permissible to the firm to carry forward undivided to the credit of the following year’s employees’ share of profits any sum -which, if divided, would have given to them less than one week’s wages calculated as afore- said. (7.) Employees’ Deserve Fund.—(a.) If in any year the employees’ share of profits should exceed such sum as would, if divided, give a bonus to them equivalent to six weeks’ wages (that is, six times the amount of the one week mentioned in Rule 6), the surplus above such sum shall go to form an employees’ reserve fund. (6) This fund will remain in the hands of the firm, bearing interest at the rate of 4 per cent, per annum, and may be applied, at the discre- tion of the firm, in aid of a subsequent year’s distribution. (c) If any such year’s surplus should not be so applied within five years of its transference to the reserve fund, the same, with interest thereon, shall, at the end of such five years, be allotted to the provident funds of such of the employees as shall then be in the employ of the firm (subject as after mentioned) under the title “ Bonus from Reserve.” (d.) No employee shall be entitled to benefit by any “ bonus from reserve ” who was not a profit-sharer for the year in which the money allotted in reserve bonus was earned. (e.) The allotment shall be made in proportion to the respective wages or salaries of the employees sharing in the allotment (computed in accordance with Rule 6) for the year in which the money allotted was earned. (/.) It shall be permissible to the firm at their discretion to allot a “ bonus from reserve ” at an earlier date than provided for in clause (c) of this rule. (<7.) The accounts of this fund (whenever any monies stand therein) will be audited yearly by a chartered accountant, and submitted (con- fidentially) to the firm’s cashier for the time being. (8.) Treatment of Bonus.—The share of the profits accruing to each employee (hereinafter called “ Bonus ”) is to be divided into three equal parts; one of these will be paid over to him within two months of the end of the financial year, and the other two parts will be credited to him in the books of the firm as a provident fund for his benefit. There will be delivered to him a pass-book in which the account of his provident fund will be entered, and which must be produced when any payment from it is demanded. (9.) Employees Leaving.—Any employee whose service ends by notice given on either side, by illness, or by death, will have a right to bonus for the financial year in which his service ends in proportion to the portion of the year elapsed to the end of the month preceding the end of his service. Any employee leaving under circumstances other than before mentioned shall lose such right. Any sum lost to an employee under this rule does not accrue to the firm, but goes wholly to increase the distribution to the other employees. (10.) Proviso in event of Damage or Embezzlement.—If an employee ceases to be in the service of the firm upon or by reason of any act or default on his part causing loss or damage to the firm, or is at the time I 2 24548 132 APPENDIX G. indebted to the firm, his provident fund shall be applied to making good such loss or damage or to payment of such debt. If the act be embezzle- ment or felony, his provident fund shall be wholly and absolutely for- feited, and shall be applied, subject as before mentioned, to such purpose, beneficial to the employees generally, as may he determined upon by the consulting committee (formed under Rule 20). Whenever this Rule is called into operation, the circumstances of the case will be reported to the said consulting committee. (11.) 4s to Withdrawal of Provident Fund.—Subject as after men- tioned, no employee shall be entitled to withdraw any portion of his provident fund.* (12.) 4s to Withdrawal after Leaving.—Subject to Rule 10, if an em- ployee during his life ceases to be in the service of the firm from any cause, he shall remain entitled to his provident fund, but he, or any person claim- ing from or under him, shall not be entitled to withdraw it until such time as, if he had continued in the service of the firm, he would have been so entitled under Rule 13; provided, however, that he may be voted earlier payment if the firm and the consulting committee (formed under Rule 20) should be of opinion that exceptional circumstances existing in his case make such earlier payment advisable. (13.) On attaining Sixty-five Years of Age, or completing Twenty-five Years of Service.—An employee on attaining the age of sixty-five years, or completing twenty-five years of continuous service, may, on the following 31st day of December, receive his provident fund accruing during that period. In reckoning the twenty-five years, service to the firm or predecessors of the firm, commencing at any time since the 1st of January, 1880, is to be included, but not service while under the age of twenty-one years. Any such employee, notwithstanding receiving his provident fund, if he continues on in the service of the firm will, as to future bonuses and otherwise, have the benefit of and be subject to these rules. (14.) In case of Marriage.—A female employee, who, after leaving the service of the firm, marries, may thereupon claim an immediate payment of her provident fund. (15.) In case of Death.—If an employee dies, his legal personal repre- sentatives will be entitled to immediate payment of his provident fund. (16.) Claim,s to be in Writing.—In every case where an employee or any person claims payment, such claims shall be in writing, and delivered to the firm’s cashier for the time being. (17.) In case Scheme is Discontinued.—If the firm should put an end to the scheme, the provident funds of all the employees will become payable to them on the 31st day of December following. (18.) Interest on Provident Funds.—The provident fund of each employee will, while the same remains in the hands of the firm, be credited with interest at the rate of 4 per cent, per annum, but no interest will be allowed for any fraction of a financial year. The firm may, if they choose, deposit the provident fund of any employee or part of such fund in a savings bank, in which case the amount deposited is to be credited with such interest only as may be allowed by the savings bank. (19.) Security given for Provident Funds.—The firm will give security upon property of ample value for all monies from time to time belonging * The following clause, intended to protect shares in a Provident Fund from being assigned by a participant or seized by his creditors, is contained in the scheme formerly in force with Messrs. Waltham Brothers, Limited, Brewers, Stockwell: “ If an employee at any time before the deferred bonus standing to his credit has been withdrawn and actually received by him, become bankrupt, or do or suffer anything whereby the deferred bonus or any part thereof, if belonging absolutely to him, would voluntarily or involuntarily become vested in, or payable to some other person, the committee may, if they in their absolute discretion think fit, pay or apply such deferred bonus or the income thereof or any part thereof for or towards the maintenance and support of such employee and his wife, children or remoter issue (if any), or of any one or more of them exclusive of the others in such manner and proportions as the committee shall think fit.” RULES OF MESSRS. THOMAS BUSHILL & SONS. 133 to the employees’ provident funds, or so much thereof as may be remain- ing in their hands. (20.) Consulting Committee.—The sick club committee are to form a consulting committee under this scheme for the firm to consult with on any question affecting any employee, or arising under these rules, on which the firm may desire assistance; nevertheless the ultimate decision of every question is to rest with the firm. (21.) Partnership not Conferred.—The employees or any of them will have neither the rights nor liabilities of partnership, nor are they or any of them to intermeddle or be concerned in the management of the business or the book-keeping or accounts of the firm. (22.) Giving of Notices.—Notices or communications to the employees are to be deemed effectually given or made if given or made in wriling to the consulting committee (formed under Rule 20). (23.) Alteration of Buies.—Alterations or modifications of these rules which experience may suggest as desirable may from time to time be made by the firm; but such changes, unless made during some month of Sep- tember, are not to take effect until the end of the financial year current at the time they are made, nor are any such changes to take effect retrospectively, so as to affect the amount of the provident fund at the time they are made of any employee. Notice of every such change will be given pursuant to Rule 22. (24.) Definitions.—In these rules, unless there be something in the sub- ject or context requiring a different construction, words importing the masculine gender include also females. “ Firm ” includes the present members of the firm, as also any person or persons succeeding to the business, whether such person or persons shall be the present members, or one or more of them, together with any other person or persons, or of any other person or persons only. “ Business ” means the business of the firm, whatever changes may take place in the nature or branches of such business, or places where the same is carried on. “ Sick club ” means the Cow Lane Steam Works Sick Club, and “ sick club committee ” the committee for the time being of such club. “ Financial year ” means the year from the 1st of September to the 1st of September. “ Scheme ” includes all relations between the firm and employees under these rules. “ Continuous service ” as also any analogous expression, means (not- withstanding temporary absences) the whole period during which the relation of employer and employee virtually subsists and there is no dismissal. “ Provident fund ” includes additions thereto under Rule 7 and of interest. Revised rules, dated this 30th day of September, 1891. (Signed) Thomas Bushill and Sons. APPENDIX H. Rules of Employees’ Deposits Fund in force with Sir W. Gr. Armstrong, Whitworth & Co., Ltd. Amount. 1. Deposits of not less than One Shilling and not more than One Pound of the depositor’s weekly wages will be received from persons in the employ of the Company each week. The amount agreed upon will be kept off through the wages sheets. 134 APPENDIX H. 2. Officials who are paid quarterly may deposit sums of not less than One Shilling and not more than Two Pounds per week. The amounts must be handed in at the Cashier’s Office of each department. 3. In the case of employees paid weekly, the total amount which may be deposited is £200. In the case of those paid quarterly, the total is £400. Interest and Bonus. 4. A fixed sum equal to 4 per cent, per annum will be allowed as interest on all deposits, and will be added to the depositors’ accounts at the end of June and the end of December in each year, except in the case of such depositors as may give notice of their intention to withdraw the interest in cash. 5. In addition to the fixed rate of interest, a bonus will be declared each year equal to half the difference between the fixed rate of 4 per cent, and the dividend payable on the shares of the Company. As in the case of the fixed interest, this bonus will be added to the depositors’ accounts unless they give notice of their intention to withdraw it. 6. Sums withdrawn will be entitled to only the 4 per cent, interest from the 31st December preceding up to the date of repayment. They will, however, be entitled to their proportion of the bonus up to the said 31st December preceding. 7. No interest or bonus will be allowed on sums of less than Ten Shillings, or in respect of any period less than one calendar month. Deposit Books. 8. All sums deposited with the Company will be entered in a deposit book. On a date which will be duly announced, this book will be handed to those depositors having time boards, at their respective time offices, by one of the Company’s staff, and on production by the depositors of their time boards. 9. In order to be written up, all deposit books must be returned at the time offices once in each month, to one of the Company’s staff appointed to receive them, and on a date which will be duly announced. 10. Those officials who have not time boards will receive their deposit books direct from the account branch and must return them there each month. Repayments and Withdrawals. 11. Deposits will be repaid or may be withdrawn as follows: — Up to one-half on seven days’ notice. The whole on fourteen days’ notice. 12. Under special circumstances the Company will allow deposits to be withdrawn without notice. 13. Persons leaving the employ of the Company will be repaid their deposits at the expiration of fourteen days. Supplementary Rules. 14. The interest and bonus payable under the Rules will be limited to a total of 10 per cent, on all deposits made after June 30th, 1901. The minimum will be 4 per cent, as hitherto, and the sliding scale will apply subject to the above limit. 15. In the case of deposits made on or before June 30th, 1901, the foregoing rule will apply on and after January 1st, 1903. 16. The Board of Directors reserve the right of fixing a limit to the total amount which will be received upon these terms. 10th June, 1901. 135 APPENDIX I. Form of Agreement in Relation to Workmen’s Debentures, carrying Interest varying with Profits, formerly in force with a Firm of Engineers. It is hereby agreed between ------------------------, Limited, by ------------------------, their secretary, of the one part, and of the other part, that in consideration of the faithful service to the Company of the said the Company will pay to the said so long as he remains in their employment, additional interest upon the debentures of the said Company, Nos. , which are held by the said (and so long only as they are held by him), over and above the interest at the rate of £5 per centum payable thereon in any case, as follows, viz., for each half- year in respect of which interest at a higher rate than five per cent, per annum shall have been paid upon the ordinary shares of the Company, such a sum as will make up the total interest on such debentures to the same rate per cent, per annum as is paid upon the ordinary shares as aforesaid. Such additional interest shall be payable at the same time as dividends upon the ordinary shares of the Company for the preceding half-year. As witness the hands of the said ------------------------------- and of the said the day of 189 . Witness to the signature of the said Witness to the signature of the said APPENDIX J. Rules of Gilbert Brothers’ Employees, Limited. (a) The rules hereto annexed, entitled “ General Rules for an Industrial and Provident Productive Society,”* numbered 1 to 126, are the rules of the society subject to the Special Rules thereof. (b) The rules next following, numbered I. to XX., are the Special Rules of this society, whereto the General Rules therein referred to are respec- tively subject, and the interpretation clause thereof applies. Special Rules. I. General Buie 3.—The name of the society shall be Gilbert Brothers’ Employees, Limited. II. General Buie 3.—The special objects of the society shall be to carry on the industries, businesses, and trades of manufacturers of and dealers in boots, shoes, and every kind of footwear, both wholesale and retail, and whether alone or in limited partnership with any other society, company, firm or person. III. General Buie 4.—The registered office of the society shall be at School Lane, Nantwich, in the County of Cheshire. * The Rules referred to are the “ General Rules for an Industrial and Provident Productive Society ” published by the Labour Co-partnership Association, 6. Bloomsbury Square, London, W.C. 136 APPENDIX J. IV. General Hales 7, 37, 39, and 60.—The following may be admitted members: (a) Employees of Gilbert Brothers, Wholesale Shoe Manufac- turers, Nantwich, who have been employed for at least six months; (6) the managing partners for the time being of that business; (c) other persons approved by such managing partners and elected by the committee of the society. Persons ceasing to be employees or managing partners shall cease to be members unless they apply to the committee of the society to remain members, and the committee consent, with the approval of the managing partners of Gilbert Brothers, for the time being. Otherwise they shall be paid out six months after the date of their so ceasing, and shall, as soon as the funds of the society allow, receive for their shares their nominal value, or any less sum appearing to be their value by the last balance sheet of the society, and meanwhile they shall not have any right of voting. The limit mentioned in General Rule 39 shall not apply to such repayments. V. General Buies 66, 69, and 70.—Besides a committee of management the society shall have a finance committee of not less than four and not more than five members, whose powers and duties shall be— (1) It may at all reasonable times inspect the books of any partnership in which the society is a limited partner and examine into the state and prospects of the partnership business, and may advise with the general partners thereon and (in so far as the same is permitted by the Limited Partnerships Act, 1907) may meet and confer with the General Partners whenever occasion requires upon all differences and questions concerning the capital of the partnership and the managers’ salaries. (2) It shall inform the employees of any such partnership by notice in writing to each employee, or at a general meeting of the society, how much (hereinafter called Part A) of the profit- sharing fund as defined in any agreement for sharing profits between such partnership and its employees is paid as bonus or dividend on the wages or salary of those employees taken collectively who, at the date to which the accounts of the part- nership were made up, were members of the society or under the age of 16 years, and how much (hereinafter called Part B) is paid as bonus or dividend upon the wages or salaries of the other employees collectively. (3) It shall further privately inform the accountant of the society how much of Part A is declared in respect of the wages or salary of each member and of each employee under 16 years of age. The first members of the Finance Committee shall be . . . Any vacancy caused by death, removal, or resignation shall be filled by some member nominated by the society and approved by the general partners in such partnership. Any addition to the finance committee shall be made in the same way. The committee of management shall not have any of the above powers or duties. VI. General Buies 8, 111, 112, 113, and 114.—All sums received by the society under arrangements of or with Gilbert Brothers for sharing profits with its employees shall be treated as capital and not as income of this society. They shall be invested according to Special Rule IX. and credited in the books of the society as follows: — (1) Each member of the society shall be credited with the amount received by the society as dividend or bonus on his wages or salary, such amounts not to be withdrawn so long as he is a member of the society and has less than £200 fully paid up in the shares of the society; but whenever there is a sufficient sum standing to his credit, enough shall be transferred to his share account to create a fully paid up share in the society until he has £200 fully paid up in the shares of the society; and appli- cation for membership of the society shall he taken to include application from time to time for any such share or shares. (2) Any amount received by the society in respect of an employee under 16 years of age shall be entered in his name until he is RULES OP GILBERT BROTHERS’ EMPLOYEES, LTD. 137 16 years of age. If he then or within one year afterwards becomes a member, it shall be transferred to his share account, and otherwise to Part B. (3) The society shall hold that part of its capital representing Part B as a Non-members’ Provident Fund for the benefit of all employees of Gilbert Brothers, who, from time to time, are not members of the society or their wives, children, or widows, or persons dependent on them, to be administered under regula- tions made by the committee of management of the society from time to time and approved by the managing partners of Gilbert Brothers. VII. General Buies 22, 26, and 112 (2).—Shares shall be of two kinds, Invested Shares and Accumulated. The latter shall be shares paid up under Special Rule VI. (1) and (2). All other shares shall be called Invested. Invested shares shall have preference both as to payment of dividend and in case of a dissolution of the society. No person shall hold more than £100 in Invested shares. VIII. General Buie 23___The payment of instalments on shares shall only be enforced in case of dissolution, or if the committee decide to put General Rule 23 in force. Otherwise a member shall only be obliged to pay his entrance fee, and may leave any share allotted to him to be paid up under Special Rule VI. (1) or (2). IX. General Buie 35.—The capital of the society, except tvuch sums as may appear to the committee to be likely to be necessary to meet the current expenses of the society and to pay out any of its members who may at any time cease to be employees of Gilbert Brothers, for at least six months, or to satisfy the purposes for which the Non-members’ Provident Fund is held, shall in furtherance of its objects be applied in augmentation of the Society’s share or interest in Gilbert Brothers, as a limited partner therein, or in the purchase of the whole of such business. Subject to the above, the committee may invest as provided in General Rule 35. X. General Buie 55.—The ordinary business meetings shall be held twice annually. One shall be held as soon as possible after the completion of the annual accounts of Gilbert Brother's. This shall be called the annual meeting. The second ordinary business meeting shall be held in the sixth month following. XI. General Buies 64 and 65.—The committee of management shall be elected from those who have been members of the society for at least two years, and have at least £10 paid up in the shares of the society, if a sufficient number of such members are nominated and are willing to serve. XII. General Buie 71.—Every balance sheet of the society shall give a complete list of members by their numbers and not by their names, and show the amount paid up on shares by each. It shall also give a similar list of loan-holders and the amount of their loans outstanding. It shall also state up to what date interest and dividend are included. It shall also give a separate account of the Non-members’ Provident Fund, and state clearly that such fund is held in trust, and is not an asset of the society. XIII. General Buie 86.—The seal of the society shall have the device of a coin and the name of the society around. XIV. General Buie 82 is not adopted. XV. General Buies 90, 91, and 92 are not adopted. XVI. General Buie 96.—Fines shall be carried to the Reserve Fund provided for in Special Rule XVIII. XVII. General Buie 111.—The profit and loss of the society shall be calculated annually, and at the same time the investments of the society other than as a partner in Gilbert Brothers, and not including investments of the Non-members’ Provident Fund, shall be valued by the committee at their then present value or the last previous valuation or their cost price, whichever be the least. Any deficiency in the value so set upon such investments as compared with their cost price or last previous valuation shall be treated as a loss by the society for that year. 138 APPENDIX J. : APPENDIX K. XVIII. General Buie 112.—Sections 3, 4, and 6 of General Rule 112 are not adopted. Interest on shares shall be at the rate of 5 per cent, per annum whenever the profits of the society, after extinguishing any adverse balance and providing for General Rule 112 (1) and (5), suffice to pay such interest. Any surplus profit shall be applied in forming a Reserve Fund, applicable by resolution of any general meeting on a recommendation of the committee to meet any contingency affecting the society or for any other purpose, whether within the objects of the society or not, other than the payment of interest on shares, provided that notice of every such recommendation he given to every member not less than six clear days before such meeting. XIX. General Buies 113 and 114 are not adopted. XX. General Buie 117 (a).—Where the dispute is between the legal personal representative or the nominee of a deceased member and the society, and the question at issue is, who is entitled to the whole or any portion of the property of such deceased member in the society, and either claimant applies to the society for arbitration, the secretary of the society shall give to each claimant notice, in writing, fixing a day and hour for the parties to attend at the society’s registered office for the selection of arbitrators in the mode set out in Clause 2 of General Rule 117, by such of the claimants as attend. (6) When the arbitrators have made their award on any dispute, they shall send a copy of the award to the secretary of the society. (c) The Arbitration Act, 1889, or any Act amending the same, shall not apply to any arbitration under this rule. APPENDIX K. Rules of Fosters’ Employees, Limited. (a) The rules hereto annexed, entitled “ General Rules for an Industrial and Provident Productive Society,”* numbered 1 to 126, are the rules of the society subject to the Special Rules thereof. (&) The rules next following, numbered I. to XVIII., are the Special Rules of this society, whereto the General Rules therein referred to are respectively subject, and the interpretation clause thereof applies. Special Rules. I. General Buie 3.—The name of the society shall be “ Fosters’ Employees, Limited.” II. General Buie 3.—The special objects of the society shall be to carry on the industries, businesses, and trades of dealers in the shares and debentures of Foster, Sons, and Company, Ltd. (hereinafter called the company). III. General Buie 4.—The Registered Office of the society shall be at No. 24, Station Road, Padiham, in the County of Lancashire. IV. General Buies 7, 37, and 39.—The following may be admitted members: (a) Employees of the company; (&) directors thereof; (c) other persons approved by the directors of the company and elected by the committee of the society. Persons ceasing to be employees or directors can only remain members by consent of the committee of the society, with the approval of the directors of the company. Otherwise they shall be paid out, receiving for their shares their nominal value, or any less sum appearing to be their value by the last balance sheet of the society. The limit mentioned in General Rule 39 shall not apply to such repayments. These are the General Rules mentioned in note to p. 135. RULES OF FOSTERS’ EMPLOYEES, LTD. 139 V- General Buies 8, 111, 112, 113, and 114_____Subject to the provisions hereinafter contained as to Common Fund all sums received by the society under arrangements of the company for sharing profits with its employees shall be treated as capital and not as income of this society. They shall be invested according to Special Buie VII. and credited in the books of the society as follows: — (1) Each member of this society shall be credited with the amount declared by the company to be paid as dividend or bonus on his wages or salary, and whenever there is a sufficient sum standing to his credit, enough shall be transferred to his share account to create a fully paid up share in the society, whether such share be applied for by him or not. (2) The sums declared by the company to be paid as dividend or bonus on the wages of non-members of this society shall be credited collectively to a Non-members’ Provident Fund, to be held by the society as trustee and not as beneficial owner, and to be administered for the benefit of those employees of the company who, for the time being, are not members of this society, or their wives, children, or widows, or persons dependent on them, subject to any regulations made by the committee from time to time and approved by the directors of the company. (3) The sums declared by the company to be paid for the credit of Common Fund shall be applied thereto and administered for educational, social, provident, propagandist, and other purposes for the benefit of the members of this society or their wives, children, or widows, or persons dependent on them, subject to any regulations which the society may from time to time make and the directors of the company approve. Special committees for the above purposes shall only be appointed if the regulations above mentioned so provide. The power of the general meetings shall not extend to the Non-members’ Provident Fund, nor shall they as to the Common Fund extend beyond the provisions of this rule. VI. General Buie 23.—The payment of instalments on shares shall only be enforced in case of dissolution or if the committee decide to put General Buie 23 in force. VII. General Buie 35.—The capital of the society, except such sum as it may be necessary to keep as cash in hand or at bank from time to time, shall be invested in fully paid up shares in the company, so long as such shares can be acquired, by allotment, at par. Thereafter the committee shall, if authorised by a general meeting, invest any further capital of the society in purchase at the market price for the time being of additional shares or debentures in the company. Subject to the above they may invest as provided in General Buie 35. VIII. General Buie 55.—The ordinary business meetings shall be held twice annually. One shall be held as soon as possible after the issue of the annual report of the company. This shall be called the annual meet- ing, and at it the delegates to represent the society at the annual meeting of the company shall be elected. The second ordinary business meeting shall be held in the sixth month following. IX. General Buies 64 and 65.—In the election of members of committee preference shall be given to those who have been members of the society for at least two years and have at least £10 paid up in the shares of the society, if a sufficient number of such members are nominated and are willing to serve. X. General Buies 71 and 112.—If any balance sheet would otherwise show a deficit in capital account, the amount of such deficit shall be written off the Beserve Fund, and, failing that, off the Common Fund, so far as such funds respectively extend. XI. General Buie 71.—Every balance sheet of the society shall give a complete list of members by their numbers and not by their names, and show the amount paid up on shares by each. It shall also give a similar 140 APPENDIX K. list of loanholders and the amount of their loans outstanding. It shall also state up to what date interest and dividend are included. It shall also give a separate account of the Non-members’ Provident Fund, and state clearly that such fund is held in trust and is not an asset of the society. XII. General Buie 86.—The seal of the society shall have the device of a coin and the name of the society around. XIII. General Buie 82 is not adopted. XIV. General Buies 90, 91, and 92 are not adopted. XV. General Buie 96.—Fines shall be carried to the Common Fund. XVI. General Buie 111.;—-The profit and loss of the society shall be calculated annually, and at the same time the investments of the society shall be valued by the committee. Any deficiency in the value so set upon such investments as compared with their nominal value shall be treated as a loss by the society for that year, and any surplus above such nominal value shall be put to Reserve Fund until that fund reaches the limit specified in Section (2) of Special Rule XVII.; and any further surplus shall be treated as profit for the year. XVII. General Buie 112.—Sections 2, 3, 4, and 6 of General Rule 112 are not adopted. Interest on shares shall be at the rate of 5 per cent, per annum whenever the profits of the society, after extinguishing any adverse balance and providing for General Rule 112 (1) and (5), suffice to pay such interest. Any surplus profit shall be applied as follows; — (1) In paying the employees of the society a dividend upon the wages or salaries received from the society during the year at the same rate as the dividend on wages declared by the company for the period in question. (2) If any surplus still remains, in forming a Reserve Fund, until such fund shall equal 25 per cent, of the nominal value of the society’s investments for the time being. Such fund shall he applicable by resolution of any general meeting on a recom- mendation of the committee to meet any contingency affecting the society or for any other purpose, whether within the objects of the society or not, other than the payment of interest on shares, provided that notice of every such recommendation be given to every member not less than six clear days before such meeting. (3) If any surplus still remains in paying any arrears of interest on shares which in any previous year have not received 5 per cent., the oldest of such arrears to be paid first. (4) If any surplus still remains in paying the committee for their services according to any scale from time to time approved by the general meetings; and (5.) If any surplus still remains in paying in cash a further dividend on shares for the year. XVIII. General Buie 117.—(a) Where the Dispute is between the legal personal representative or the nominee of a deceased member and the society, and the question at issue is, who is entitled to the whole or any portion of the property of such deceased member in the society, and either claimant applies to the society for arbitration, the secretary of the society shall give to each claimant notice in writing, fixing a day and hour for the parties to attend at the society’s registered office for the selection of arbitrators, in the mode set out in clause 2 of General Rule 117, by such of the claimants as attend. (6) When the Arbitrators have made their award on any dispute they shall send a copy of the award to the secretary of the society. (c) The Arbitration Act, 1889, or any Act amending the same, shall not apply to any arbitration under this rule. 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. 142 APPENDIX L. It is therefore in the interest of the Shareholders that gas should be sold at the lowest practicable price; but as the Act of Parliament did not apply the principle of the Sliding Scale to the employees of the Company, they consequently had no direct interest in the price at which gas was sold. In order to remedy this defect, the Directors, on October 30th, 1889, unanimously resolved to offer to their Officers and all Workmen who were willing to sign Agreements, a share in the profits of the Company in the form of a percentage on their salaries and wages. The principle of the Sliding Scale was adopted, the percentage (or Bonus) rising when the price of gas is reduced, and falling when it is raised. The initial price or starting point with the Sliding Scale which regulates the dividend of the Shareholders is fixed by the Act of Parliament of 1900 at 3s. Id. per 1,000 cubic feet, and the same figure now applies to the Co-partnership scheme. The Shareholders get 2.s. 8d. per cent, for each penny reduction in the price of gas. The Co-partnership Bonus is at the rate of 15s. per cent, on the annual salary of the Officers and the year’s wages of the Workmen for each penny at which gas is sold below 3s. Id. per 1,000 cubic feet. One-half of the Bonus is invested in the Company’s Ordinary Stock in the names of the three Trustees until the amount credited to any Co-partner is sufficient to give him a Stock Certificate in his own name. The remain- ing half of the Bonus is left in the Company’s hands to accumulate at interest, or it may be invested in Stock with the Trustees, or it may be withdrawn under special circumstances by giving a week’s notice. Scale of Bonus. If the price of Gas is at or above 3s. Id. per 1,000 feet—No Bonus. At 3s. 0 d.— | per cent. At 2s. 5d.—6 per cent. „ 2s. lid.—1J J J „ 2s. id.—6f )> „ 2s. 10d.—2| >> „ 2s. 3d.—7£ J? „ 2s. 9d.—3 J J „ 2s. 2d.—Si }) „ 2s. 8d.—3} } J t, 2s. Id.—9 3) „ 2s. 7d.—4-| J } „ 2s. Od.—9| 3 J „ 2s. 6d.—6{ )) And so on. Buies. 1. Employees working under signed Agreements and Officers who fulfil the conditions of these Rules shall be entitled to the Co-partnership Bonus. The Directors reserve the right to refuse permission to any man to sign an Agreement who does not take an interest in the welfare of the Com- pany and its Co-partnership, or who is wasteful of the Company’s property, or is careless or negligent in the performance of his duty. 2. The bonus shall be calculated on the salaries of the Officers, and the wages of the employees, no account being taken of overtime. Those employees who may be employed on piece-work shall have their Bonus calcu- lated on the amount they would have earned at their ordinary rate of wages in the regular working hours. 3. No deduction shall be made on account of absence caused by sickness, unless the total amount of such absence exceeds two months (8 weeks) in the year, and then only the excess over that period shall be deducted. 4. The Bonus year shall end on the 30th June in each year and the Bonus shall not be declared until that date. It shall be paid in full to employees discharged from the Company’s service on account of slackness of work, or in the event of superannuation or death, for the period such employees have worked under Agreement since the previous declaration of Bonus. Men leaving the Company’s service of their own accord before the declaration of the Bonus and with the approval of their Engineer or Super- intendent, shall, in respect of the current year’s Bonus, be paid only the withdrawable half calculated on the time they have been under Agreement in such year. Should a man be discharge'1 for misconduct or breaking the terms of his Agreement, he shall not be paid Bonus for the expired portion of the period of the Agreement he was working under at the time. 5. On the declaration of the Bonus on the 30th of June in each year, or in the case of a Winter man on the completion of the term specified in his Agreement, the whole of the Bonus to which he may be entitled (see Rule 6 RULES OP SOUTH METROPOLITAN GAS CO. 143 for Winter men) shall become the absolute property of the employee. One- half shall be separately entered in his Pass Book and invested in the Com- pany’s Ordinary Stock, either in his own name or on his behalf in the names of the three Trustees, and the other half shall be entered in his Pass Book to accumulate at interest, but under special circumstances, it may be allowed to be withdrawn upon giving not less than seven days’ notice upon a form provided for the purpose. The whole of the Bonus, however, may be placed direct to the Trust Account if any employee notifies the Pay Clerk or the Co-partnership Secretary that such is his desire. Under no circumstances whatever, except fraud, shall the declared Bonus or any part or any accu- mulations thereof, whether in the hands of the Trustees or in the name of the employee, be forfeited. 6. Winter men under signed Agreement shall be entitled to the full Bonus, provided they return in the following Winter, and leave the with- drawable half on deposit with the Company. If, however, they choose to take the withdrawable half in cash, they are perfectly at liberty to do so, but in that case they will not be entitled to the other half. Should the Bonus at any time amount to 10 per cent., the maximum payable to Winter men who take payment in cash, viz., 5 per cent., will be reached. Winter men who leave their Bonus with the Company and who do not return the following season can, on application to the Secretary, obtain payment of the withdrawable portion to which they were entitled when leaving, plus the usual interest. 7. The Committee shall appoint three Trustees, one Director, one Officer, and one Co-partner Workman, in whose names the half Bonus and any interest, savings, or transferred amounts added thereto shall be invested annually in the Company’s Ordinary Stock. If the amount so accumulated by any employee be sufficient for the allotment of £10 or more of Stock, the Trustees shall transfer such amount to him. In the event of leaving the service of the Company or on the death of any depositor the Trustees shall pay to him or to his representatives, in accordance with Rules 5 and 11, whatever money may be standing in his name in their hands, but under no other circumstances shall any money be withdrawn from the Trust Account. 8. Interest at the rate of 3 per cent, per annum shall be allowed on all amounts, excluding fractions of a pound, accumulated with the Company. It shall be calculated up to June 30th in each year, but shall not be given for an incomplete month. 9. The Company will receive and add to his account such amounts as any employee may deposit as savings, and on all such sums interest shall be paid as per Rule 8. 10. The Company will, on the application of any of their employees, make arrangements for the transfer and investment of any sums to their credit in the withdrawable account or any other money they may desire to invest, into the Stock of the Company. Any employee selling Stock purchased through Co-partnership, without the consent of the Secre- tary of the Company, or pawning or pledging the same, will at once cease to be a Co-partner, notwithstanding any Agreement he may have signed. No Co-partnership system can endure unless it continues to fulfil the objects for which it was founded; therefore those Co-partners who do not endeavour to promote the welfare of the Company and of Co- partnership, and who sell, pawn or pledge Stock or withdraw Bonus except as allowed under special circumstances shall be struck off the list and not be permitted to renew Agreements. They may, however, again become qualified after the lapse of two years if during that period they have taken an active interest in the prosperity of the business and have deposited savings equal in amount to two weeks’ wages. 11. Any Employee may, pursuant to the South Metropolitan Gas Act, 1896, nominate by writing in the prescribed form (which may be obtained from the Secretary), any person or persons to be registered as owner of and to transfer the whole or any part of the Stock of the Company belonging to him, and to receive the whole or any part of the deposits 144 APPENDIX L. standing to his credit in the event of his death, provided that they together do not exceed the sum of £100. Such nomination may be in favour of one person or several persons either jointly or in specified Shares. On the receipt of the nomination by the Secretary it will be duly registered, and the nominee or nominees will, on production of proof to the satisfaction of the Directors of the death of the appointer, be entitled to be registered as owner or owners of the Stock, and to receive the deposits in accordance with the nomination to the amount of £100, subject, how- ever, to a declaration as to the amount of the appointer’s estate and to payment of estate duty if after deduction of debts and funeral expenses it should exceed the value of £100. Any nomination may be revoked by the appointer by writing under his hand signed in the presence of a witness and registered with the Secretary. Where an employee has not registered a nomination and the Stock and deposits belonging to him do not exceed the value of £100, the Directors are authorised by Parliament, and will be prepared in a proper case (after the Estate duty is paid if his total property exceeds £100 after deduction of debts and funeral expenses) to distribute the amount in payment of funeral expenses or debts or among his widow and children or next of kin, if probate of a Will or Letters of Administration are not produced within such time as they think reasonable. 12. A Committee of Management shall be formed, to consist of the Chairman of the Board of Directors, and twenty-six members elected by the Board, and twenty-seven members elected by the Co-partners in pro- portion to the numbers at each Station, who shall be elected by ballot; candidates must hold and continue to hold while in office on the Committee not less than £25 of Stock, and they must have been not less than five years in the Company’s service; one-third of the elected members of the Committee shall retire by rotation every year, but shall be eligible for re- election. Twenty-six members shall constitute a quorum, of which not less than thirteen shall be members who were elected by employees, and every resolution to be binding at such Meeting shall have for its support a majority of the members of the Committee present at, and voting upon, the resolution. 13. The committee shall appoint a Secretary, who shall have no power of voting. 14. In the event of any difference arising as to the construction of these Rules, it shall be referred to the Committee, whose decision shall be final and conclusive. 15. There shall be two Auditors, one to be elected by the employees, the other to be appointed by the Company, whose duty will be to compare and initial the employees’ Pass Books with the General Account, and for that purpose all Pass -Books must be handed in or sent to the Head Office in the month of May in each year. 16. The Committee shall meet for the transaction of business when sum- moned by the Secretary, but not less than twice in each year; they shall also be summoned on the requisition of five of their own number or of thirty of the employees. 17. The Secretary shall receive all Notices, summon all Meetings of the Committee, and see that all decisions of the Committee are duly carried out. 18. No alteration shall be made in these Rules whatever except by the sanction of the Committee, and subject to notice of at least one calendar month; which notice shall state the nature of the alterations, and be posted in conspicuous places at the various stations; but nothing in these Rules contained, or which may be contained in any Rules hereafter agreed upon, shall give to any employee, whether Officer or Workman, any right to interfere in the management or control of the Company’s Works, or in the working and carrying on of the Company’s business, except as provided by the Company’s Acts of 1896-7 for the appointment of three Directors by the Employee Shareholders. 19. The Company shall provide all the books and other incidentals, and keep the accounts, together with a record of all the transactions, at the Company’s sole cost and charges. RULES OP SOUTH METROPOLITAN GAS CO. 145 Form of Co-partnership Agreement. General Agreement. Memorandum of an Agreement made the day of 191 between for and on behalf of the South Metropolitan Gas Company, of No. 709, Old Kent Road, in the County of Surrey, of the one part, and of the other part. 1. The said for South Metropolitan Gas Company agrees to employ the said for a period of. months from the day of the date hereof at one or other of the Stations of the said Com- pany, if he shall remain sober, honest, industrious, and performs the work allotted to him. 2. The said agrees to serve the said Company for the said period of months in whatever capacity he may from time to time be employed by the said Com- pany at the current rate of wages applying to such capacity. 3. The said agrees to obey the orders of the Foreman in charge. 4. The hours of working for yard men to be 54 hours per week. 5. The Company undertakes that during the continuance of this Agree- ment the different rates of wages in force at the date hereof, and which, under Clause 2, may become payable to the said shall not be reduced. 6. The said to be entitled to the benefit and be bound by the conditions of the Co- partnership Rules so long as he shall continue in the service of the Com- pany under Agreement. As witness the hands of the parties, No obstacle will be thrown in the way of any man engaged under the above Contract who may wish to leave the Company’s employment before the expiration of the period of service therein agreed for, provided he shall notify such wish to the Engineer of the Station at which he may for the time being be employed, and on receipt of such notice the Engineer shall, in his discretion, consider whether the services of such man can be dispensed with without detriment to the Company, and, if so, permission will be given at the expiration of the usual week’s notice. 24548 K 146 APPENDIX M. List of Official and Unofficial English Publications and Magazine Articles in the Library of the Labour Department dealing with Profit-sharing and Labour Co-partnership. (a.) Official Reports and Publications, jBoard of Trade :— ---- Report on Profit-sharing. J. Lowry Whittle, 1890. (C. 6267 of 1891.) ---- Report on Profit-sharing. D. P. Schloss, 1894. (C. 7458.) ---- Board of Trade Labour Gazette. Articles with Statistics of Profit-sharing. July, 1895; July and December, 1896; July, 1897 ; August, 1898; August, 1899 ; August, 1900 ; August, 1901 ; March and July, 1902 ; October, 1908 ; October, 1904 ; September, 1905 ; April, 1907 ; January and February, 1909; October, 1910; October, 1911. Profit- sharing and Labour Co-partnership, July, 1912. ---- Abstract of Labour Statistics of the United Kingdom. 1st (1893-94) to 15th (1909-1910). Statistics of Profit-sharing in each issue. ----Report on Lndustrial and Agricultural Co-operative Societies in the United Kingdom, 1912. [Cd. 6045.]* Profits and Profit-sharing with Employees (Associations of Consumers), p. xxvi. Profit-sharing (Associations of Workers), p. xxxiii. Board of Agriculture and Fisheries. Profit-sharing on a Farm in Germany. Note. Journal, Nov ember, 1907, p. 503. Industrial Questions and Trade Unions. Correspondence with H.M. Missions Abroad regarding. Reports respecting the Progress of Foreign Industry and Production, Co-operative Societies &c., 1867. Co-operation in Foreign Countries. Reports by H.M. Representatives Abroad on the Systems of. Commercial No. 20. (1886.) (C. 4783.) Royal Commission on Labour, 1891-1894:— For reference see (1) Index to the Evidence given by representatives of Co-operative Societies and of Various Movements, before the Com- mission sitting as a Whole. (C. 7063-iii.) (2) Index to the Evidence taken before Groups A, B and C Subjects. (C. 7063-iv.) (3) Glossary of Technical Terms. (C. 7063-v. c.) (4) The Agricultural Labourer. Vol. 1. Part iii (C. 6894-iii), Part iv (C. 6894-iv). Co-operation and Profit-Sharing in France. Translation of Extracts from the Report of the French Senate Committee appointed to inquire into the Bill passed by the Chamber of Deputies on Co-operative Production and Supply Associations, and on Profit-sharing ; laid before the Senate on 22nd February, 1892. (Stationery Office Paper, 1893.) (5.) Unofficial Books, Pamphlets and Articles. Agriculture. Co-operative Agricidture: A Solution of the Land Question as exemplified in the History of the Ralahine Co-operative Agricultural Association, County Clare, Ireland. William Pare, 1870. (London: Longmans Green & Co.) ---- The Irish Land and Labour Question illustrated in the History of Ralahine and Co-operative Farming. E. T. Craig, 1893. (London: Triibner & Co.) ---- rlhe Land and the Labourers. A Record of Facts and Experiences in Cottage Farming and Co-operative Agriculture. Rev. C. W. Stubbs, 1884. (London : Swan, Sonnenschein & Co.) ----Profit-sharing in. Albert Grey. See Profit-sharing. Associated Homes. Lecture by E. Yansittart Neale on the Familistere at Guise, 1880. (London : Macmillan.) Better Way, A. See Labour Co-partnership. * Contains list of publications dealing with Co-operation (see p. 258), PUBLICATIONS DEALING WITH PROFIT-SHARING AND LABOUR CO-PARTNERSHIP. 147 Capital and Labour, The Claims of. W. Pare, 1854. (London : Ward and Lock.) ---- Paper read by P. W. Shorey at the 1890-91 Session (January, 1891) of the Institute of Marine Engineers. (Printed by Wilson & Whitworth, Broadway, Stratford.) ---- Partnership of, as a Solution of the Conflict between them. Henry Vivian. Bead before the Economic Section of the British Association, 13th September, 1898. ---- The Marriage of. See Labour Co-partnership. ---- Labour and Capital in Alliance. W. T. Thornton, 1869. See “ On Labour.” Clarke, Nickolls <£- Coombs. See Profit-sharing. Coal Mining, Co-partnership in. See Co-partnership. See also Whitwood Collieries. Commandite in France. E. Martin Saint Leon. “Economic Journal,” June, 1907. ----See also Partnership “ en OommanditA” Co-operation, History of ’. G. J. Holyoake, 1875. 2 vols. Vol. II, Chapter XV— Industrial Partnership. (London : Triibner & Co.) ---- The Progress of, in England and France. (References to profit-sharing and co-partnership schemes.) A. Millerand. “ New Review.” September, 1889. ---- (Industrial.) D. E. Seliloss. “ Contemporary Review,” April, 1890. ---- at Home and Abroad. C. R. Fay, 1908. Part III., Chapter V.—Profit- sharing : The Workers’ Society and the Co-operative Store. (London : P. S. King & Son.) ---- (Industrial). The Story of a Peaceful Revolution. Catherine Webb. 4th edition (revised). 1910. Chapter XVII—Labour Co-partnership. (Manchester : Co-operative Union, Ltd ) . Co-operative Industry. Ernest Aves, 1907. (London : Methuen & Co.) Co-operative Movement, llie, in Great Britain. Beatrice Potter, 1891. Work- ing Class Limiteds, p. 126. (London : Swan, Sonnenschein & Co.) Co-operative Production. Wm. Thomson & Sons, Ltd. (1) Rules, 1886. (2) Co- operative Production in Woollen and Worsted Cloths, Woodhouse Mills, Huddersfield. Carlisle Congress, 1887. (3) Address by the Bishop of Ripon. ----in France and England. Participation and Profit-sharing. Edward Cummings. “Quarterly Journal of Economics,” July, 1890. ■--- Benjamin Jones, 1894. 2 vols. Chapter XXVII—Profits and Profit- sharing. (Oxford : Clarendon Press.) ---- H. W. Wolff. “ Economic Review,” January, 1895. ----A Novel Attempt at, in the Building Trades. Henry Vivian. “ Economic Review,” June, 1896. Go-operators and Profit-sharing. W. E. Snell. “ Economic Review,” April, 1893. Co-partnership in Coal Mining. Industrial Peace and Industrial Efficiency. Proposals submitted by Sir Christopher Furness, October, 1908. ----Speech by Sir Christopher Furness to officials and workmen of the Wingate Colliery Co , Durham, May, 1909. Co-partnership Journal. South Metropolitan Gas Co., No. 1 (January, 1904)— in progress. Co-partnership Magazine. Gas Light and Coke Co., No. 1 (January, 1911)— in progress. Co-partnerslup (formerly Labour Co-partnership). From commencement (August, 1894)—in progress. Co-partnership and Industrial TJnrest. Viscount Wolmer, M.P. “ National Review,” May, 1912. Co-partnership Movement, Ihe. Notes. H. W. Wolff. “ Economic Review,” July, 1908. Co-partnership Shirt Factory, Girls. Sedalia (Missouri). Note in “ Progress,” April, 1911, p. 127. Equitable Commerce as practised in the Equity Villages of the United States of North America. Paper read before the British Association at Glasgow, September, 1855, by William Pare. Furness, Sir Christopher. (Scheme of.) See Co-partnership in Coal Mining. 24548 K 2 148 APPENDIX M. Gas Companies : South Metropolitan Gas Company. Report of the Proceedings at an Interview between the Directors and Representatives of the Workmen of the South Metropolitan Gas Co., who have signed Agreements under the Profit-Sharing Proposal, 21st November, 1889. ---- ----- Paper on the Profit-Sharing Scheme of the South Metropolitan Gas Co., its History and Results. George Livesey. Co-partnership Con- ference on the Labour Question, Newcastle-on-Tyne, 14th October, 1899. ----------“ Co-partnership Journal.” No. 1 (January, 1904)—in progress. ------ Gas Light & Coke Company. “Co-partnership Magazine.” No. 1. (January, 1911)—in progress. Good Fellowship Scheme. See Thames Ironworks. Guise. The Familistire at. Associated Homes. Lecture by E. Yansittart Neale on, 1880. (London : Macmillan.) ■--- Notes. E. A. Barnett. “ Economic Review,” January 1904. ----Txoenty years of Co-partnership at. Aneurin Williams. “Economic Review,” January, 1905. ----Twenty-eight years of Co-partnership at. Translated from the French by Aneurin Williams, 1908. (Labour Co-partnership Association.) Ilebden Bridge Fustian Manufacturing Co-operative Society. The story of the formation of, 1888. Report of Coming of Age Celebrations, 1891. ---- A brief sketch of Twenty-one Years’ Work in Co-operative Production. Joseph Greenwood, 1891. Industrial Conference, Preliminary. Report of Proceedings, 16th March, 1894. With description of a Suggested Union of Employers and Employed. (London : Methuen & Co.) ---- Proceedings in connection with the, Newcastle-on-Tyne, 13th and 14th October, 1899. Industrial Efficiency. Arthur Shadwell, 1906, 2 vols. Chapter VIII.—Wages. (London : Longmans, Green & Co.) Industrial Organization at Delft. Notes by M. H. Prichard. 11 Economic Review,” January, 1902. Industrial Partnership. Notes by Spenser Farquharson. “ Economic Review,” July, 1897. ---- See “ History of Co-operation.” .(Holyoake.) ----, An. (Wm. Thomson & Sons.) Notes by J. M. Ludlow. “ Economic Review,” April, 1902. Industrial Partnerships. W. Stanley Jevons. See Social Reform, Methods of. Industrial Problem, Three Solutions of the. (Profit-sharing, industrial partner- ship and co-operation.) C. H. D’E. Leppington. “ Charity Organisa- tion Review,” April, 1893. Industrial Remuneration Conference, January, 1885. Report of Proceedings and Papers. (London : Cassell & Co., Ltd.) Industrial Remuneration, Methods of. I). F. Schloss. 3rd edition, 1907. (London : Williams & Norgate.) ---- Ihe Increase in, under Profit-sharing. D. F. Schloss. “ Economic Journal,” June, 1891. Industrial Union of Employers and Employed. T. W. Bushill. “ Economic Review,” April, 1894. ---- J. M. Ludlow. “ Economic Review,” October, 1895. Industrial Warfare. The Aims and Claims of Capital and Labour. C. Watney and J. A. Little, 1912. Contains chapter on Profit-sharing and Co-partnership. Industry, The Efficient Organisation of. See Labour Co-partnership. Labour Co-partnership. Labour Co-partnership Association, (formerly Labour Association for promoting Co-operative Production, based on the Co-partnership of the Workers), Selection of Publications of :— ---- ----- Annual Reports. 1st (1884-85) to 26th (1910-1911). ---- ----- Co-partnership. From commencement, August, 1894—in progress. Up to 1907 was called Labour Co-partnership. ---- ----- The Principles, Objects and Methods of the Labour Association. E. Vansittart Neale. ----------Co-operative Workshops in Great Britain. Thomas Blandford, 1895, 1897, 1898, PUBLICATIONS DEALING WITH PROEIT-SIIAKING 149 AND LABOUR CO-PARTNERSHIP. Labour Co-partnership. Labour Co-partnership Association. Publications of (contd.). ---- ----- The Marriage of Capital and Labour. Address by Hodgson Pratt 1896. ---- ----- Labour Co-Partnership. James Bonar, LL.D. Read at Leeds Industrial Conference, 4th March, 1899. ---- ----- Should Workmen be Partners? F. Maddison, March, 1901. ---- ----- History and Present Position of Labour Co-partnership. Aneurin Williams, March, 1901. ---- ----- Labour Co-partnership and the Aspirations of Labour. Aneurin Williams, 4th May, 1907. ---- ----- Labour Co-partnership in relation to Social Progress. Professor S. J. Chapman, 1907. ---- ----- Twenty-eight Years of Co-partnership at Guise. See Guise. ---- ----- Co-partnership in Industry. Charles Carpenter, 1912. ---- ----- A Better Way. Partnership of Labour with Capital. Aneurin Williams (n.d.). ---- ----- A Better Way. Some Facts and Suggestions as to introducing the Partnership of Labour with Capital into Established Businesses. Aneurin Williams (n.d.). ---- ----- Workmen as Producers and Consumers. F. Maddison (n.d.). ----------2he Efficient Organisation of Industry. Henry Yivian (n.d.). ---- ----- Labour Co-partnership in Practice. Henry Yivian (n.d.). ----------Ihe Industrial Possibilities of Wales. With special reference to the Slate Industry. W. J. Parry (n.d.). ---- Co-partnership of Labour, The. Aneurin Williams and Henry Yivian. Economic Review,” July, 1894. ---- Labour Co-partnership. H. Demarest Lloyd, 1898. (London and New York : Harper Bros.) ---- Labour Co-partnership, Recent Progress of. Aneurin Williams and Henry Vivian. “ Economic Review,” April, 1901. ---- Labour Co-partnership Association, The. Notes. F. Maddison. “Economic Review," July, 1910. ---- Labour Co-partnership. Notes in “ Economic Review.” Henry Vivian, January, 1912 ; L. Y. Lester-Garland, July, 1912. Labour, On. Its Wrongful Claims and Rightful Dues. Its Actual Present and Possible Future. W. T. Thornton, 1869. Book IV—Labour and Capital in Alliance. (London : Macmillan & Co.) Labour Problem, Solutions of ihe. I. Industrial Co-operation. David Dudley Field, “ North American Review,” January, 1893. Labour Question, Lectures on the. Thomas Brassey, M.P., 1878. Lecture VI. Co-operative Production. (London : Longmans, Green & Co.) Landholding (Collective) in Italy. Notes by H. W. Wolff. “ Economic Review,” January, 1907. Leclaire. A Lecture by W. H. Hall, 1880. (Manchester: Central Co-operative Board.) Limited Liability and Co-operative Capital. A Practical Suggestion. W. S. Ogle, F.C.A., 1911. (London : C. & E. Layton, 56, Farringdon Street.) Marcroft Family, The. A History of Strange Events. William Marcroft, Senr., 1889. (Rochdale : E. Wrigley & Sons, Ltd.) Metayage in Western France. L. L. Price. “ Economic Journal,” March, 1894. ---- (farming on shares). See “ Profit-sharing in Agriculture,” by Albert Grey. Partnership “ en commandite,” or Partnership with limited liabilities, 1848. (London : Effingham Wilson & Co.) Pottery Trade, Profit-sharing and Co-operation in the. Warneford Moffatt. See Profit-sharing. Profit-sharing. Profit-sharing between Capital and Labour, On. A word to Working Men. Sedley Taylor, 1882. (Cambridge: W. Metcalfe & Son). ---- ----- Paper read to the Manchester Statistical Society by Sedley Taylor, 10th January, 1883. ---- ----- Six Essays. Sedley Taylor, 1884. (London : Kegan Paul, Trench, Triibner & Co.) ---- Profit-sharing and Co-operative Production. Paper read by E. W. Greening at the Industrial Remuneration Conference, 1885. ----Profit-sharing Agreement (South Metropolitan Gas C'o.). See Gas Companies. 150 APPENDIX M. Profit-sharing. Profit-sharing between Employer and Employee. A study in the Evolution of the Wages System. N. P. Gilman, 1890. (London : Macmillan.) ------- Profit-sharing. D. F. Schloss. “ Charity Organization Review,” January, 1890, and March, 1891. ---- Profit-sharing in Agriculture. Article by Albert Grey in “ Journal of the Royal Agricultural Society,” December, 1891. ----Profit-sharing Precedents. H. G. Rawson, 1891. (London : Stevens & Sons, Ltd.) ---- Profit-sharing Firms (British), List of, with Notes. T. W. Bushill and D. F. Schloss. “ Economic Review,” January, 1891. ----Profit-sharing. Official Report by J. Lowry Whittle. Note in “ Economic Journal,” March, 1891. ---- Profit-sharing Scheme of Clarice, Nickolls & Coombs. Note in “ Economic Review,” April, 1891. ----Profit-sharing Schemes. Notes on. W. H. Frere. “ Economic Review,” April, 1892. ---- Profit-sharing and Co-operative Production. L. L. Price. “ Economic Journal,” September, 1892. ---- Profit-sharing. (On Associations formed in the United States.) D. F. Schloss. “ Economic Review,” October, 1892. ----Profit-sharing and the Labour Question. T. W. Bushill, 1893. (London : Methuen & Co.) ----Profit-sharing, Co-operators and. W. E. Snell. “ Economic Review,” April, 1893. ---- Profit-sharing and Co-operation (Pottery Trade). Warneford MofEatt. “ Economic Review,” April, 1893. ---- Profit-sharing in the United Kingdom. See notes in “ Employer and Employed.” Journal of the United States Association for the pro- motion of Profit-sharing. Yol. I. (1893) to Yol. IY., No. 2 (January, 1896). ---- Profit-sharing Report (Official) of 1894, Note on. “Economic Journal,” September, 1894. ---- Profit-sharing and the Labour Question (Bushill), Review of. F. C. Montague. “Economic Journal,” September, 1894. ------ Profits and Profit-sharing. Benjamin Jones, 1894. See Co-operative Production. ---- Profit-sharing. Notes. C. F. Garbett. “ Economic Review,” April, 1896. ---- Profit-sharing (Clarke, Nickolls & Coombs, Ltd.). Notes. “ Economic Review,” July, 1898. ---- Profit-sharing Scheme of the South Metropolitan Gas Co., its History and Results. George Livesey. Paper read at the Co-partnership Confer- ence of the Labour Association at Newcastle-on-Tyne, 14th October, 1899. ----Profit-sharing, Successful. “ Economic Journal,” 1899. ---- Profit-sharing in the United Kingdom. See Chapters IX. and X. and Appendices II. and III. of “ A Dividend to Labour." N. P. Gilman, 1899. (Boston and New York : Houghton, Miflin & Co.) ----Profit-sharing Concerns, Two. Lawrence Phillips. “ Economic Review,” April, 1900. ----Prosperity-sharing versus Profit-sharing in relation to Workshop Manage- ment. W. H. Lever. “Economic Review,” January, 1901. ---- Prosperity-sharing versus Profit-sharing. Notes. J. Bonar. “ Economic Review,” April, 1901. ---- Prosperity-sharing: A Rejoinder. W. H. Lever. “ Economic Review,” July, 1901. ^ ---- Profit-sharing: A Vindication. George Livesey. “ Economic Review,” October, 1901. ----Profit-sharing. Some Aspects of. George Mathieson. “ Economic Review,” January, 1902. ---- ----- 'Ihe South Metropolitan Gas Co. Note as to alleged exclusion of trade unionists. “ Economic Review,” January, 1902. ---- Profit-sharing Experiments. Notes. M. W. Middleton. “ Economic Review,” April, 1903. r ] 9HB 1 PUBLICATIONS DEALING WITH PROFIT-SHARING AND LABOUR CO-PARTNERSHIP. 151 Profit-sharing (contd.). Profit-sharing, Hostility of Trade Unions to. Labour Notes in “Economic Journal,” September, 1902; June, 1903; June, 1904; June, 1910. ----------See “ Industrial Democracy.” B. & S. Webb, 1902, p. 551. (London : Longmans, Green & Co.) •—— Profit-sharing, Money and. Or the Double Standard Money System. James O. Smith, 1908. (London: Kogan Paul, Trench, Triibner & Co.) ---- Profit-sharing. C. B. Fay. See Co-operation at Home and Abroad. ---- Profit-sharing and Co-partnership. Monthly Journal. No. 1 (June, 1912)— in progress. (London : Co-partnership Publishers, Ltd.) ---- Profit-sharing and Labour Co-partnership. Theodore Cooke Taylor, M.P. “Contemporary Review,” May, 1912. ----Profit-sharing in Operation. (J. T. & J. Taylor, Ltd., Batley). Notes. J. L. Stocks. “ Economic Review,” July, 1912. Ralahine. See Agriculture. Shirt Factory (Co-partnership.) See Co-partnership. Slate Industry. W. J. Parry. See Labour Co-partnership. Social Advance, Methods of. Edited by C. S. Loch, 1904. Chapter X— Industrial Partnership and the Prevention of Distress, by George Livesey. (London: Macmillan.) Social Reform, Methods of. W. Stanley Jevons, 1883. On Industrial Partner- ships, p. 122. (London : Macmillan.) Stockholding by Employees in the United States Steel Corporation. Ernest Aves. “Economic Journal,” March, 1903. Sun Mills Company, History of. 1858-1877. W. Marcroft. Thomson, Wm. & Sons, Ltd. See Co-operative Production; also Industrial Partnership. lhames Ironworks and Shipbuilding Company, Good Fellowship Scheme of “ Thames Ironworks Quarterly Gazette,” 1896-1906. “ West Barbary"; or Notes on the System of Work and Wages in the Cornish Mines. L. L. Price. “Journal of the Royal Statistical Society,” September, 1888. Whiiwood Collieries, Normanton. Yorkshire. Memorandum on the Industrial Partnership at. See “ Profit-sharing.” Sediey Taylor, 1884. See also references given on p 42 of this Report. Working Class Limiteds. See “ The Co-operative Movement.” Working Men Co-operators. A. H. D. Acland and B. Jones, 1893. (London : Cassell & Co.) Workmen as Producers and Consumers. See Labour Co-partnership. Workshops, Co-operative in Great Britain. See Labour Co-partnership. Zeiss (Carl) Works at Jena, System of employment at the. Dr. F. Schomerus 1910. ------ A Model Co-operative Establishment. Notes by EL W. WolfE. “ Economic Review,” July, 1908. 152 INDEX. Note.—For official and other publications dealing with the subject of Profit- sharing and Labour Co-partnership, see Appendix M, pp. 146-151. “ A. A.” ................................. “ A. B.” ................................. Abandonment of Profit-sharing, see Cessation. Abstract of Labour Statistics of the United Kingdom, Accountant, see Accounts (Verification of). Accounts (Verification of), ... ... 8,18,21,28,37,38 “A. D.,” ........................................ Adnams, J. & Son, Agreements, profit-sharing (or co-partnership), 7, 25, 55, Agricultural and Horticultural Association, Ltd., Agricultural Co-operative Societies, Agriculture, Profit-sharing in, Aitken, Dott & Son, ... ....... Aldershot Gas, Water and District Lighting Co.,....... Analysis of profit-sharing schemes now in force, ... Anderton, Geo. & Son, Ltd., ... Armstrong, Sir W. G., Whitworth & Co., Ltd., ... 41 Arrowsmith, J. W., Assurance and Pension Fund, Auditor, see Accounts (Verification of). Avalon Leather Board Co., Ltd., Page. 101 69,96,116 ........1,10 I, 44, 47, 92, 128, 130 111,125 ............... 98 56, 62,135,142,145 ... 68,95,115 85,86 15,28,72,114 .............106 ... 62, 63,101 16-27 ............... 96 42, 95,115,133,134 ...............105 87-91 ............... 96 Backhouse, H. & Co.,......................................... 73, 97 Bailey, Nokes & Co., Ltd., ... ... ... ... ... ... ... 107 Ballantyne, D. & Co., ... ... ... ... ... ... 70,97,116 Barbour, John & Co., ... ... ... ... ... ... ... 108 Barratt & Co., Ltd., ... ... ... ... ....... ... 100,119 “B. B.,” ......... ..................................... 73,97,117 “ B. C.,” ...................................................... 98 Binns & Co., Ltd., .......................................... 106,122 Binns, R. & Son, ........................:................... 110, 124 Binns, Richard, ... ... ... ... ... ....... 106, 122 Birmingham Coffee House Co., Ltd., ... ... ... ... ... 105 Birmingham Dairy Co., ... ... ... ... ... ... 69,96 Blundell, Spence & Co., .............................. 28, 29, 95,115 Board of Trade Labour Gazette, ... ... ... ... ... 1,75 Bonus on production not Profit-sharing,............................. 7 Bonus (profit-sharing), how paid, 26-29, 36-38, 41, 48, 51, 53, 55, 56, 58, 59, 62, 63, 64, 78, 82, 88, 91, 92, 94, 128, 131, 134, 141-143 (see also Appendices A and B, pp. 95-113) ; how determined, 17, 21, 28-30, 36, 37, 41, 43, 50, 53, 55, 56, 58, 62, 64, 77, 78, 91, 92-94, 128, 130, 134, 141, 142 ; how divided, 17, 19, 20, 28, 29, 37, 38, 43, 51, 53, 64, 78, 91, 92, 128, 130, 131 ; period of distribution, 17, 38 ; carried to reserve, 28, 131 ; see also Forfeiture, Investment, Provident Funds, Ratio. Boot and shoe manufacturing, Profit-sharing in, ... ... ... 46-49 Bournemouth Gas and Water Co. Brakell, Thomas, Ltd., Brassey, Hon. T. A., ... Briggs, Henry Son & Co., Briggs, Richard & Sons, Ltd., Broad, E., ........ Bromhead, J., ... ... Brooke, Bond & Co., ... Browett, Lindley & Co., Ltd., Brownfield’s Guild Pottery Society, Ltd., 63, 74, 99,118 69, 96 108.123 42-16,103,121 110.124 ........ 110 ........ 108 95,115 ........ 108 90-92 INDEX. 153 Brush Electrical Engineering Co., Ltd., Building trade, co-operative scheme in force in, Building trade, Profit-sharing in, .......... Burroughs, Wellcome & Co., Bushill, T. W., ....................... Bushill, T. & Sons, Ltd., ................... Businesses to which Profit-sharing applied, 15 ; and B, pp. 95-114. Butt, Vosper & Knight, ...................... Page. ..................... 110 .................... 92-94 ........ 15, 49-52, 114 ...................... 105 ........, ... 128,130 .............. 106,130-133 see also Appendices A 98 Cambridge University and Town Gas Light Co.,.................. 63,100,119 Cameron, D. & Son, ... ... ... ........ ............ 71,72,97 Capital, interest on, ........ 7,18, 28-30, 36, 43, 46, 49-53, 57, 87, 89-91, 93 Cardiff Gas Light & Coke Co., Cardiff Milling Co............. Carmarthen Gas Co.............. Carr, B. B., Lomas & Co., Ltd., Cassell & Co., Ltd., Castner-Kellner Alkali Co., Ltd., Casual labourers, “C. C.,” ................ “ C. D.,” ................ Central Co-operative Stores, Ltd., Cessation of Profit-sharing, causes of, 14, 15, 44, 45, 64, 93 ; see also Appendix B, pp. 103-114. 63, 64, 99,118 .............. 107,123 .................... 112 .............. 70,97 .............. 68, 95,115 ...................... 99 22, 25, 55, 56, 58, 62,142,143 .............. 69,96,115 .............. 69,96 ......................107 •v. ... 70,97,116 15,114 61-64, 72, 97,116 ... 70,97,116 105,122 36-38, 96,116 110,124 103 15,114 42-46 103.121 ... 112 ... 109 ... 105 104.121 ... 95 61-63, 72, 97,117 Chalmers, T. & Son, Ltd Chemical, glass, pottery, etc., trades, Profit-sharing in, Chester United Gas Co., .......................... Chitty, G. W. & Co.,.............................. Circle Co-operative Printers’ Society, Ltd , Clarke, Nickolls & Coombs, Ltd., Clark’s Bread Co., Ltd., ............ Clayton Plate and Bar Iron Co., Ltd., Clothing trades, Profit-sharing in, ... Coal-mining, Profit-sharing in, Cobden Memorial Mills Co., Ltd., ... Cockerell, Douglas, Collard, Joseph, .................... Collier, S. & E., Ltd.,....... Collins, Benjamin, .................. Colne Fishery Board, ... Commercial Gas Co., ... Commission, persons paid by : not on profit-sharing basis, 7 ; excluded from Profit-sharing, 25, 37. Committee, profit-sharing, (or co-partnership), ... 27, 35, 47, 56, 57, 59, 60, [64,133,136, 144 Conditions as to participation in Profit-sharing, 24, 25, 28, 29, 31, 34, 35, 37, [55-58, 62, 64, 91,128,130,142,143 Confectionery manufacture, Profit-sharing in, ................. 36-38 Contract, see Legal Contract and Agreements. Control of business, employees’ share in, 11, 26, 27, 29, 37, 44, 46, 50, 52, 53, [60, 61, 63-65, 68, 76, 79, 80, 83, 85, 93 Coombs “ Eureka ” Aerated Flour Co., Ltd., ...........................109 Cooper, J. T. & Son, ... ... ... ... ... ... ... ... 100 Co-operative Needlewomen’s Society, ..................................104 Co-operative Societies, Profit-sharing and Labour Co-partnership in : Associations of Consumers, 75-80 ; Associations of Workers, 80-85 ; Agricultural Productive Societies, 85, 86 ; conversion of ordinary businesses into Co-operative Societies, 87-94. Co-partnership, Labour, see Labour Co-partnership ; see also under Profit-sharing. Cotton Powder Co., Ltd., ... ... ... ... ... ... 100, 119 Coventry G-as Fitting, Electrical and Engineering Co., Ltd., ... 105,122 154 INDEX. Crompton & Co. Ltd., Cropper, J. & Co. Ltd., Croydon Gas Co., Curwen, John, ... Oussons, William Ltd., Page. 109.123 ...73, 97 63, 99,119 ... 103 110.124 Dailey, Clement & Co., ... • ......... Damage to be made good from profit-sharing bonus, Dartford Gas Co. “D. D.,”............................................ Debentures (Workmen’s), .............. Decorative Co-operators’ Association, Deferred participation in profits, see Provident Funds. Denaby Co-operative Pottery, ................ Departmental Profit-sharing,... Deposits, see Loans. Depreciation, provision for, ... Devereux, John & Sons, Directors, employee, ... Directors included in profit-sharing scheme. Disputes with employees, 44, 45, 53-56, 90 ; see also Results. Distribution of bonus, period of, see Bonus (profit-sharing). Distributive (Store) Societies, Co-operative, Retail, Dobson & Barlow, Ltd., Douglas & Son Ltd., ... D’Oyly & Co. Ltd., “ D. P.,” ............... Drake & Gorham, Duration of existing profit-sharing schemes, 14, 73 ; of ........... 96 23,129,131,132 62, 63,100,120 ........69, 96 .......... 135 105,121 .......... 104 17,73 18, 46, 87, 91-93 ........ 109 27,44, 50, 52, 53, 60,61,64, 68 . 29, 31, 32 ...75, 76 108,123 98,117 105,121 ... 106 ... 108 experiments, 14 Edmeston, Archibald & Son, ..............................................107 “E. E.,”................................................................. 95 Electricity supply, Profit-sharing in,......................... 15,114 Employees’ Investment Society, ......................... 49-52, 138-140 Employees : number in profit-sharing firms, 15 (see also Appendices A and B, pp. 95-112) ; relations with employers under Profit- sharing, see Results. Enfield Gas Co................................................. 63, 100, 120 Engineering and shipbuilding trades. Profit-sharing in, 15, 41, 42, 114, 133,134 English Co-operative Wholesale Society, ... ... ... .......77-79 Epsom & Ewell Gas Co., ... ........ ... ... 62,63,99,118 Farming, Profit-sharing in, Fidler & Sons, ... Finance Committee of employees, . Firms, list of, see Appendices A & B Fletcher & Son, .............. “ F. N.,” .................... Food preparation, Profit-sharing in,.. Foremen under profit-sharing schemes. Forfeiture of right to bonus, Foster, Sons & Co., Ltd., Fox, Bros. & Co., Ltd., Fox, Head & Co., Franklyn, Davey & Co., Fraud, see Forfeiture of bonus. 23, 29, ... 15,28,86,114 ..............68, 95 ........ 47,136 .............. 103 ........ 107,123 ........ 15,114 ........ 18, 40, 92 34, 55, 58,128,131,142,143 49-52, 97,116,138-140 39, 40, 95,115 ................... 103 ................... 109 Gain-sharing not Profit-sharing, Gallery, S. & Sons, Garnett, P. & C., Ltd., 7 ... Ill 98,117 INDEX. 155 % Page. Gas Light and Ooke Co., .............................. 61, 63, 99, 119 Gasworks, Profit-sharing in,............. 15, 17, 21, 22, 25-27, 54-64, 114 “ Gas-workers’ Union,” ... ... ... ... ... ......54-56 General Service Co-operative Stores Ltd.,..........................107 “ G.H. ”... ... ... ... ... ... ... ... ... 109 123 Gilbert Bros.,.................................. 46-49, 98,117,135-138 Gimson & Co............................................................104 Glass, pottery, chemical, etc. trades, Profit-sharing in .... 15, 114 Gloucester Gas Light Co., ............................ 62, 63, 99,118 Goodall & Suddick, ....................................................104 «G. B ” ... ... ... ... ... 105 122 Grantham Gas Co., ... ... ... ....... ••• 62-64,99,119 Gratuity, profit-sharing bonus as, ...................16, 28, 29, 37, 45, 46 Greening & Co., Ltd., ... ... ... ....... ••• ••• 103,121 Gregory, Love & Co.................................................... 100 Grey, Earl, ... ....................................... 105,122 Guild of Handicraft Ltd., ... ... ... ... ••• ••• 106, 122 Guy’s Hospital Trained Nurses’ Institution, ........................... 96 Gwynne, John & Henry, ................................................ 104 Hailing, Thomas, Hamilton & Co., Ltd.,... Hancock, ffm. & Co., Ltd., Harris, F. W.,........ Harrow & Stanmore Gas Co.. Haslemere Builders, Ltd., Hasler & Clapham, Hay & Son, Ltd., Hazell, Watson & Viney, Ltd Headley, H. D. & B., ... Hele Paper Co., Ltd., ... Hertford Gas Light Co., Hertford, Marquis of, ... Hickman, Alfred, Hill, W. & Son, Holloway, G., ... Holmes & Co.,......... Home Industries Societies, Horn, Alexander, Hubbard, G„ Humphries & Bobbett, Hunter, John A. & Co., Hutchinson, Herbert, ... .......... 107 104, 121 ........ 110 ........ 112 ... 63, 111, 120 .........92-94 100,120 98,117 64-66, 95,115 ........ 108 ... 38,96,116 63,101 ........ 108 108.123 .......... 104 107.123 104,121 ........ 80 ........ 11 .......... 107 .........71,97 .......... Ill 92, 93, 111, 124 Ideal Club and Restaurant, ... ... ........ ••• ••• HO Idris & Co., Ltd., ............................................. 108,123 Ilford Gas Co.,.................................................63,100,120 Ilford, Ltd., ............................................................HI Indeterminate bonus not Profit-sharing, ... ... ............... 8 Industrial Co-operative Societies, see Co-operative Societies. Industrial and Provident Societies Acts, ... ... ...47, 50, 79, 87, 90, 93 Interest on capital, see Capital. Investment of bonus, 11, 21, 26, 27, 46-64, 78, 88, 142, 143 ; in existing schemes, see Appendix 0, pp. 115-120 ; in abandoned schemes, see Appendix D, pp. 121-125. Investment of Provident Funds, 23, 37, 38, 65, 66 Irish Dairying Societies, Irvine’s Shipbuilding & Dry Docks Co., Ltd., 86 112,125 Jacks, W. & Co., 104,121 Jackson & Sons, 101 “J. J.," 67, 68, 95,115 156 INDEX. “J. K.” ............. “J. N.,” ............. Johnson Bros. (Dyers), Ltd., Johnston, James, Jolly & Son, Bath, Ltd., Joyner, Charles & Co., Page. ... 1.10 ... 108 101,120 ... 101 ... 103 107,123 Kensington Co-operative Stores, Ltd Kensington Co-operative Stores, Ltd King, Bolton, ... Kinnear, John Boyd, “K. K.” “K.N,” Knight, John, Ltd., “K. T.” ............................ 107 (Dressmaking Department), 111, 124 ......... 105 ......... 105 ... 71,97,116 ......... Ill 52-54, 98,117 .......... 98 Labour Co-partnership, Labour Co-partnership, 9, 11,12 ; see also under Profit-sharing. Labour Co-partnership Association, Ladyman, J. H. & Co., Lawrence, William & Co., Ltd., Lawson, Wm., ... Leamington Priors Gas Co., ... Lee & Hunt, Legal contract, profit-sharing arrangements Levant Mining Co., Lever Bros., Ltd., ........... Limited Partnerships Act (1907), Liverpool United Gas Light Co., Livesey, Sir Geo., “ L. L.,” ............... Lloyd & Summerfield, Co-partnership, “ L. M.,” ............... Loans to employees, Loans to employers by employees. Ltd. Loders & Nucoline, Ltd., London Co-operative Supply Stores, Ltd., London, Deptford, and Greenwich Tramway Longwood Gas Co., 9, 51, 135 ...69, 96 108,123 ... 103 62-64, 98,117 ... 106 ... 7,16 ... 112 29-36,100,119 ...46-49 62, 63,101 12, 54, 70,141 ... 98 ... 103 70, 96,116 ... 66 7, 8, 20, 21, 23, 38, 39, 41, 42, 55-59, 61, [63, 65, 78,132-134, 143. 101,120 11 Loss of rights of employees to bonus, Losses, employees share in, Low (Sampson), Marston & Co., Ltd “ L. R.,” ............... Mackay, W. & J. & Co., Mackenzie & Storrie, Ltd., Mail & Leader, Ltd., ... Management, remuneration of, Manners, Lord George, Marriage benefits, Martin, Robert,... McVitie & Price, ............. McVitie, Robert, Meath Home Industries Association. Merthyr Tydfil Gas Co., Metal trades, Profit-sharing in, Metcalfe & Cooper ... ... Milliners and Dressmakers Co., Ltd., Mining and quarrying, Profit-sharing “M. M.,” ... ... “M. N.” ......... 26, 27 Co. see a so For :eiture ... 107 ... 107 62, 63,100,120 22 ...89, 90 106,122 ...73, 97 ... 108 98,117 98,117 18, 50, 94 ... 104 37, 89, 90,132 107,123 ... 106 107,123 ... Ill 63,101,120 15,114 112,125 ... 103 15,114 69, 96,116 ... 112 INDEX. 157 Page. Morley, T., 71,97 Morris & Bolton, Ltd., 73, 97, 117 Morton, A. & Co., ... ... ... 111,124 “M. R.,” 97, 117 Mundell, Jesse,... 110 Mushet, Robert & Co., 109 Needlewomen’s Co-operative Association, Ltd., 105, 122 Nelson, J. E., ... ... Ill Newman & Son, 107,123 New Welsh Slate Co., Ltd., 106, 122 Norman, Sawyer & Co., ... ... 100 North of England Industrial Coal and Iron Co., Ltd., 104, 121 Nottingham Brewery, Ltd., ... ... Ill Notting Bill Electric Lighting Co., Ltd., 101 Number of cases dealt with in report, 10 ; of employees of profit-sharing firms, 15 (see also Appendices A and B, pp. 95- “ 0. N.,” ............................................... 74, 98 “0. 0.,” ..................................................... 101,120 Opinions of employers, see Results. Osborne & Young, ............................................. 107, 123 Osborne, Ohas. H., ... ... .................... ••• 101 Overtime excluded from wages for distribution of bonus, 19, 56, 128, 131, 142 Paper-making, Profit-sharing in, Parnall, William & Co., Parry, W. J., Ltd., ........... Peel Bros., .................... Penman, A. C.,........... Pension funds............ Perrott & Perrott, Ltd., Peto Bros., .................... Petty & Sons, Ltd., ............ Phillips & Co.,................. Pickwell, J acob, ............. Piecework excluded from wages for distribution of bonus, Pieceworkers excluded from Profit-sharing, ............... Plymouth and Stonehouse Gas Light and Coke Co., Post Office Savings Bank, Provident Fund paid into, Pottery, chemical, glass, &c., trades, Profit-sharing in, Pottery works, co-operative scheme in force in, .......... Powell, N. J. & Co, Ltd., ................................ “P. p.,”.................................................. Premium on production not Profit-sharing, ................ Price’s Patent Candle Co., Ltd., ......................... Printing and bookbinding, Profit-sharing in, ............. “ Productive ” Societies, Co-operative : Industrial 15,38, 114 110.124 98,117 ... 109 98,117 22, 37, 59, 66, 87-91 105.121 ... 106 109.124 108,123 ... 110 19, 20, 56,142 96 98 62, 63, 101,120 ....... 23 15, 114 90-92 ....... Ill 112.125 ....... 7 104.121 15,64-66,114 Associations of Consumers, 79, 80 ; Industrial Associations of Workers, 80-85 ; Agricultural, 85, 86. Profit-sharing: defined, 6-8; distinguished from stockholding, 7; from premium on production, 7 ; from bonus-giving, 8 ; not con- fined to principal employees, 8 ; progress of, 13 ; trades in which adopted, 15 ; causes of cessation of, 14, 15 (see also Appendix B, pp. 103-114) ; results of adoption of, 28, 29, 36-40, 44, 45, 52-54, 61, 66, 67-74, 77, 92, 93 ; duration of existing schemes, 14, 73 ; duration of past experiments, 14 ; number of persons employed in profit-sharing firms, 15 (see also Appendices A and B, pp. 95-112) ; analysis of various schemes, 16-27 ; detailed account of certain schemes, 27-66 ; firms by which adopted and nature of businesses, see Appendices A and B, pp. 95-112 ; rules for schemes, 128-145. See also Bonus (profit-sharing), Committee, Conditions of partici- pation, Profits, Publications, Waste. Profit-sharing Report, 1894,............. ............ ... ... ... 1,10 158 INDEX. Page. Profits : how determined, 7, 17, 18 : share of employees, 18,19 ; number of employees participating in, 8, 16, 25, 126, 127, (see also Appendix A, pp. 95-101). Progress of Profit-sharing, ................. ... ... ....... 13 Provident funds under profit-sharing schemes : bonus credited to, in present profit-sharing firms, see Appendix A, pp. 95-102 ; in past profit-sharing firms, see Appendix B, pp. 103-113 ; proportion of bonus reserved as, 21, 22, 26, 38, 64, 92, 94, 131 ; provision against alienation of, 132 ; purposes to which applied, 18, 22, 37, 38, 51, 64, 132 ; forfeiture of, 23, 132 ; how invested, 23, 37, 38, 65, 66, 132 ; security for, 132, 133. Prudential Assurance Co., Ltd., ................................. 74, 98,117 Publications on Profit-sharing and Labour Co-partnership ... 146-151 “P. Y.,”......................................................... 70,97,116 Raithby, Lawrence & Co., Ltd., ................... Rank, Joseph, Ltd., RatclifEe, John, Ratio of bonus to wages, 16, 28, 29, 37, 42-44, 52, Rayleigh, Lord, Raymond Bros., Redhead, D. & Co., Ltd., Reporter, Ltd., ... Reports and other publications, Reserve funds,................. Reserved limit before Profit-sharing begins, Results of adoption of Profit-sharing, 28, 29, ............. 109, 124 ............. 112,125 ...................109 53, 61, 64, 76, 79, 80, 82, 83, [86, 89, 92, 94,126,127 99,118 112,125 ... 98 99 146-151 46, 50, 81, 87, 94 8,18,19,128,130 36-40, 44, 45,52-54, 61,66, [67-74, 77, 92, 93 111 Richmond Gas Stove and Meter Co., Ltd., ... 111,124 Robinson Bros., Ltd., 69, 96,116 Rogers, R. H. & S., Ltd., ... ... 109,123 Rollason & Jones, 71,97 Rowntree, John & Sons, 69, 96,116 Rowntree, W. & Sons, 106 “ R. P.,” 68. 95 “ R. S.,” 98 Rugby Gas Co. 62, 63, 99,118 Russells & Wrangham, 101,120 Sadd, John & Sons, Ltd., 70,96,116 Sagar, Henry, Ltd., ... ... ... 98, 117 Sanitas Co., Ltd., 100 Saville’s (1902), Ltd., Schemes (profit-sharing), see Profit-sharing. 98 Scope of inquiry, 69 Scott, Thomas, 106 Scottish Co-operative Wholesale Society, 78, 79 Seniority in division of bonus, Shares issued to employees on advantageous terms, 8, 23, also Investment of bonus, and Transfer of Shares. 20, 65 24, 64, 65 ; see Shipbuilding and engineering trades, Profit-sharing in, 15, 41, 42,114, 133,134 Sickness, provision for, see Provident funds. Smith & Forrest, ...................................................110 Soap manufacture, Profit-sharing in, .........................29-36, 52, 54 South Buckley Coal and Fire Brick Co., Ltd., ................. 103 121 South Metropolitan Gas Co.,...................... 54-64, 96,116,141-145 South Suburban Gas Co., ......................... ... 61-64,70,96 116 Southwark and Deptford Tramways Co......... ... ... ... ... ' 107 Spencer, Earl, ... ......... '........................ m\\ 105 m Spillers and Bakers, Ltd., ................................... 72 97 116 Spottiswoode & Co.,.............................. ’’’ ’ ’ jp4 INDEX. 159 Page. Stainsby & Lyon, Ltd., ... ... ... ... ... ... ...69,96 Stockholding by employees, see Shares. Store societies, see Distributive (store) societies. Stow, John, Ltd., ... ......... ... ... ... ... 72,97,116 Strikes in profit-sharing firms, 45, 53-56 ; see also Disputes and Results. Strutt & Parker, ... ... ... ......... ... ... 99,119 Superannuation, see Pension funds. ... 99 ... 105 42, 44, 45 111, 125 ... 108 15,114 106,122 ... 104 ...87-90 Tamworth Herald Co., Ltd.,.............................. Tangyes, Ltd.,.......................................... Taylor, Sedley,......................................... Teasdale & Co., Ltd., ... Terrell, William & Sons, Ltd., ... ........ Textile trades, Profit-sharing in, Thomas, Christopher & Bros., Ltd.,...................... Thomasson, John & Son, Thomson, Wm. & Sons, Ltd., ... ........ Thrift funds, see Provident funds. “T. K.,”................................................ “T. L..” ......................................... “ T. N.,” ......................................... Tobacco Corporation, Ltd.,.............................. Tollesbury & Mersea (Blackwater) Oyster Fishery Co., Ltd., Tottenham & Edmonton Gas Light and Coke Co., Trades in which profit-sharing schemes have been adopted, Trade Unions and Profit-sharing ... ... ... ...44,45,54-56,69,72 Transfer of shares acquired under profit-sharing schemes, 24, 26, 27, 58, 65, [143,144 Transport trades, Profit-sharing in,.............. ........... 15, 114 Trotter, T. & Son, Ltd., ........... ... ........ ... ... 110 Troughton & Simms, ... ... ... ... ... ... ... ... 104 Trustees appointed under profit-sharing scheme, 26, 29-36, 52-54, 56, 143 111, 95, ... 68,95, 62, 63, 99, 124 115 112 110 115 119 15 Tucker, James, Ltd. (CardifE Milling Co.),... Tuke, Edward & Co., ... Tunbridge Wells Gas Co., 107,123 ... 108 63, 99,118 United Baking Society (Glasgow), Unwin Bros., Ltd., .......... ... 80 109,124 Valvoline Oil Co., ... ... ........ Veigel6, Madame, Voting strength of employees, see Control of business. 69, 96,116 ... Ill Wages in profit-sharing firms, ... 9, 25, 43-46, 72, 89 Wake, Sir Herewald, Bart. 72, 97 Walford, Hasler & Co., 100,120 W’alker and Wallsend Union Gas Co., 63, 99,118 Wallscourt, Lord 10,14,103 Waltham Bros., Ltd., 109,132 Wandsworth and Putney Gas Light and Coke Co., 63,100,120 Wantage, Lady, 27, 28, 96 Wardle, Blythe & Co 104,121 Waste, avoidance of, through Profit-sharing, 54, 73, 90 Waterford, City of, Gas Co., 62, 63,100,119 Waterman & Co.. 105 Watford Gas and Coke Co., ... 62,63,100,120 Wellingborough Gas Light Co., Ltd., 63,99,118 Welsh Liberal Newspaper Co., Ltd.,... 109,124 Wessex Press, Ltd., 112 Western Tanning Co., 106 160 INDEX. Westminster Electric Supply Corporation, Ltd., Weston-super-Mare Gas Light Co., ... Page. 100, 119 63, 99,119 White Stile Laundry, 110 Whitworth, Sir Joseph & Co., Ltd., 41 Whitworth & Co., Ltd., see also Sir W. G. Armstrong Wilkin & Sons, Ltd., ... 100, 120 Wilkinson & Kiddell, Ltd., ... 101,120 Willey & Co., Ltd., 112,125 Williams, John & Sons, Ltd., 109 Wills, W. D. & H. O., Ltd., 106,122 “ Winter men ” in gasworks, see “ Casual Labourers.’ Withdrawal of deposits, notice required, 21, 39, 41,42, 58, 59, 63,134, 143 Women in profit-sharing firms, ... ... 22,28,37-39,89,90,95,108,115 Women's Printing Society,.................................... 68, 95,115 Women’s Work Association,..............................................108 Wood, J. & S.,.........................................................106 Woodworking and furnishing trades, Profit-sharing in, ... ... 15,114 Woollen manufacture, Profit-sharing in, ... ... ... ... ...39,40 Woollen and worsted manufacture, co-operative scheme in force in, ...87-90 Working Women’s Co-operative Association, Ltd., ... ... 105,122 Workmen-directors, see Directors, employee. Workwomen’s Co-operative Association, Ltd., ...........................105 Wrexham Gas Co., ... ............. ... ... 62,63,99,117 Wright, M. & Sons, ....................................................104 Wyles Bros., Ltd., ..........................................71, 97,116 Young, H. D. & Sons,... Young & Marten, Ltd., 105 111 [CM. 6394.] lOi d. Gs. Od Evidfnc-. [Cd. ........ 54-.'. ....... W. Tinplates Manufacture. Report on Condition of Employment. Statistical Tables, British Colonies. 1910. [Cd. 6400.] Horse Power Ratino of Motor Cars. Report of Committee, with 6414,6415.]................................................ China Loan Negotiations. Correspondence. [Cd. 6446.] ... Military:— Armourers, Instructions for, in the care, repair, browning, &c. of Small Arms, Machine Guns, “ Parapet” Carriages, and for the care of Bicycles. 1912 ... ... ... Is. 6d. Do. Amendments, Aug. 1912 ... ............................... 1 d. Army Review. Yol. III. No. 2. 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STATIONERY OFFICE (Scottish Branch), 23, Forth Street, Edinburgh; or E. PONSONBY, Limited, 116, Grafton Street, Dublin; -Or from the Agencies in the British Colonies and Dependencies, the United States of America, the Continent of Europe and Abroad of T. FISHER UNWIN, London, W.O. PRINTED BY DARLING and SON, Ltd., Bacon Street, E. 1912. PUBLICATIONS DEALING WITH PROFIT-SHARING AND LABOUR CO-PARTNERSHIP. 149 o to o NO o 03 -J > -0 O 00 03 00 > 00 O (O a o n c 3 a 3 'trier ship. Labour Co-partnership Association. Publications utd.). Marriage of Capital and Labour. Address by Hodgson Pratt, 1896. mr Co-Partnership. James Bonar, LL.D. Read at Leeds |rial Conference, 4th March, 1899. : J<1 Workmen be Partners ? F. Maddison, March, 1901. org and Present Position of Labour Co-partnership. Aneurin j; ns, March, 1901. \ur Co-partnership and the Aspirations of Labour. Aneurin ps, 4th May, 1907. Mr Co-partnership in relation to Social Progress. Professor S. spman, 1907. 1 ty-eight Years of Co-partnership at Guise. See Guise. artnership in Industry. Charles Carpenter, 1912. I*\etter Way. Partnership of Labour with Capital. Aneurin ns (n.d.). titer Way. Some Facts and Suggestions as to introducing the cship of Labour with Capital into Established Businesses. ■- n Williams (n.d.). | hnen as Producers and Consumers. F. Maddison (n.d.). Efficient Organisation of Industry. Henry Yivian (n.d.). mr Co-partnership in Practice. Henry Yivian (n.d.). t.Industrial Possibilities of Wales. With special reference to the Hdustry. W. J. Parry (n.d.). ship of Labour, The. Aneurin Williams and Henry Yivian. >mic Review,” July, 1894. 3-partnership. H. Demarest Lloyd, 1898. (London and New Harper Bros.) (■partnership, Recent Progress of. Aneurin Williams and Henry “ Economic Review,” April, 1901. ■partnership Association, The. Notes. F. Maddison. “Economic July, 1910. partnership. Notes in “ Economic Review.” Henry Yivian, f, 1912 ; L. Y. Lester-Garland, July,..1912. • Wrongful Claims and Rightful Dues. Its Actual Present and t Future. W. T. Thornton, 1869. Book IY—Labour and \in Alliance. (London: Macmillan & Co.) , Solutions of the. I. Industrial Co-operation. David Dudley North American Review,” January, 1893. Lectures on the. Thomas Brassey, M.P., 1878. Lecture YI. Utive Production. (London : Longmans, Green & Co.) vllective) in Italy. Notes by H. W. Wolff. “ Economic j: j” January, 1907. :: iture by W. H. Hall, 1880. (Manchester : Central Co-operative and Co-operative Capital. A Practical Suggestion. W. S. Ogle, 1911. (London : C. & E. Layton, 56, Farringdon Street.) , The. A History of Strange Events. William Marcroft, Senr., ‘ 'Rochdale : E. Wrigley & Sons, Ltd.) 'em Frame. L. L. Price. “ Economic Journal,” March, 1894. l shares). See “ Profit-sharing in Agricultureby Albert Grey. | commandite," or Partnership with limited liabilities, 1848. a : Effingham Wilson & Co.) Profit-sharing and Co-operation in the. Warneford Moffatt. fit-sharing. Profit-sharing between Capital and Labour, On. A word to , g Men. Sedley Taylor, 1882. (Cambridge: W. Metcalfe & Son). 1 read to the Manchester Statistical Society by Sedlev Taylor nuary, 1883. bays. Sedley Taylor, 1884. (London: Kegan Paul, Trench, : & Co.) ng and Co-operative Production. Paper read by E. W. Greening idustrial Remuneration Conference, 1885. “^ng Agreement (South Metropolitan Gas Co.). See Gas oumpauies. I