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