Until the 1st of July, 1865, the Whitwood and Methley Junction Collieries were worked as a private enterprise by the firm of Henry Briggs, Son, and Company. For several years previous to that date, the regular working of the collieries, and the legitimate profits derivable therefrom, had been most seriously interfered with by the occurrence of frequent and lengthened strikes among the workman. These unhappy differences became at length so serious, that the proprietors determined to register their company under the Act of 1862, "with the primary view" (as was stated in a prospectus issued during the month of November, 1864) "of securing the co-operation of all connected with the collieries, either as managers and working-people, or as customers; in the earnest hope of thus effecting a satisfactory solution of the difficult problem, now so largely occupying the attention of political economist and philanthropists, namely, the best mode of associating capital and labour, and of preventing the occurrence of those trade disputes which so frequently disturb the social relations of our country."
After mentioning that the valuation of the property would not exceed the sum at which it stood in the books of the firm, it was further stated in the prospectus that the members of that firm would retain at least two-thirds of the share capital and, "that in allotting the remaining one-third, they would give a decided preference to applications for shares—first, from the officials and operatives employed in the business; secondly, from the purchasers of the produce of the collieries." The amount of the shares was fixed at 15l., with 10l. called up, and the most novel feature of the proposed undertaking was introduced by the following clause:
"In order, however, to associate 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 proportion to their respective earnings faring the year in which such profits shall have accrued." It was added, that the acting partners of the existing firm would
