a rule prove better than the average ordinary person who would be casually picked up to fill a vacancy. Thus both the permanency and the morale of the force have been improved.
Another beneficial result of the plan has been the saving of labor. Although it is difficult to determine the saving due directly to the profit sharing plan, there can be no doubt that it is considerable. In the year 1894 for instance, the labor cost of manufacture, including a 12 per cent. profit-sharing dividend upon the wages, was 63 per cent, of what it was during 1886, and this in spite of the fact that the average rate of wages in 1894 was a trifle over 12 per cent. higher than in 1886. Now figuring conservatively, and throwing all questionable items against profit-sharing, and estimating that the improved methods of manufacture are responsible for 28 per cent, of the 37 per cent. shown, there remains a saving equal to 9 per cent. plus the 12 per cent. increased wages, or 12 per cent. cheaper labor cost of manufacture to be attributed to profit-sharing.[1]
Some of the improved methods of manufacture are also to be accredited to the interest developed by the profit-sharing system. For instance, the writer was shown a soap-cutting machine which had been so improved by the workmen as to save the company a considerable sum. The motive in this and other improvements by the workmen was the possibility of an increased dividend. The employés have developed also a greater interest in the character of the goods manufactured, taking special pride and pains in things in which they assume a large profit is made. They will call the attention of the foreman to little questions as to quality of the different brands of soap manufactured, showing plainly a desire to do their share in seeing that nothing goes out from the factories which would tend to injure the demand for the products of their labor.[2]
There has also been a saving in material, though just how much it is difficult to determine. One of the principal sources of waste in the factory is due to the waste of scraps and small
