If Mr. Pillsbury from his abundance and his generosity maintained this system at some willingly made sacrifice—a thing of which he is perfectly capable—it would be extremely creditable to him individually and exceedingly fortunate for his employés individually; but it would not help to solve the labor question at large. Unless experiments at cooperative profit sharing prove advantageous enough to recommend the system to employers for business reasons, the system must be counted a disappointment and a failure. Few employers are in a position to do business on any system that handicaps them in the fierce struggle of competition."[1]
The Columbus (Ohio) Gas Company adopted a plan of profit sharing in 1885. President Emerson McMillan gives the following account:
Former method was to divide equally the saving in the cost of labor per unit of product. That is to say,—if cost of labor for unit of product was reduced 5 per cent, in any one year as compared with the preceding year, the men's wages would be increased 2 ½ per cent, from that time on. Eventually we reached a point when further reductions were not possible. Under method adopted in 1895, we pay the men a dividend at the same time and at the same rate paid to the stockholders, payable semi-annually. The stockholders' dividend is figured on the amount of his stock. The employés' dividend is figured on his earnings. If an employé earns $1000 a year, he receives a dividend of $50. Every employé from the president down is entitled under certain restrictions to participate in the dividend. In the company to which I am referring about seventy-five, or say, nine-tenths of our regular employes participate. The conditions are: (a) The employé must have been in the service of the company for one year preceding the beginning of the six months for which a dividend is declared. (b) His services must have been continuous and satisfactory. If compelled to be absent a satisfactory substitute is accepted. (c) Until an employé has become the actual owner of at least three shares of stock, either through dividends or purchase, the company may pay the dividend in stock. We greatly desired to have all our employés become
- ↑ Albert Shaw, Coöperation in a Western City, American Economic Association publications, 1887; pp. 183–190. Also Johns Hopkins University Studies in Historical and Political Science, Sixth Series, pp. 256–263.
