conduct and an increased effort to make the business more profitable will warrant.
P. N. Kuss, painter and decorator, of San Francisco, Cal., introduced the first profit sharing experiment on the Pacific coast in 1890. The basis of division is, (1) current wages paid every week and salary of manager; (2) interest on capital invested at 10 per cent.; (3) profits divided into three equal parts, one-third payable to manager, one-third in cash to employés, and one-third invested for employés' benefit. The employés' portions are divided pro rata to earnings of the year. The bonus has averaged from 5 to 6 per cent, on wages, though for two of the five years no profits were made.
The Bowdoin Paper Manufacturing Company, of Brunswick, Maine, began practicing profit sharing in 1890. Ten per cent, of net profits, after interest on plant is deducted, is divided among employés in proportion to the wages they have received during the period of cooperation. The firm write: "Our experience has been favorable and we think well of the plan. For the past few years business has been in a depressed condition and the labor dividends have been small and infrequent, but we believe that the influence of the system is in the right direction." They believe that the system tends to increase rather than to decrease profits.
The Cumberland Mills, owned by S. D. Warren & Company, of Boston, Mass., practice a similar plan of profit sharing.
CASES OF TEMPORARY ABANDONMENT OF PROFIT SHARING DUE TO COMMERCIAL DEPRESSION.[1]
The Page Belting Company, of Concord, N. H., had several years' experience in profit sharing dating from 1887, The plan was to divide the net profits, after paying capital 10 per cent., up to
- ↑ The Peace Dale Manufacturing Company, of Peace Dale, R. I., deserves mention in this connection. This firm, founded at the opening of the century, has an enviable record in its dealings with its employés. In 1878 an indeterminate plan of profit sharing was adopted, which in its application for four years, 1880 to 1884, was practically a determinate plan of profit sharing. Fifty per cent, of the net profits were divided among the employés, amounting to a bonus of 5 per cent, on wages for the first two
