PROFIT-SHARING AND COOPERATION 805
of their earnings. The 75 per cent, of the profits is declared as a dividend upon the above sums and then divided among the mem- bers of the groups in accordance with the earnings estimated as above. Space forbids a fnore detailed account of this most inter- esting of all such developments. A most accessible as well as complete account is found in the Bulletin of the Departtneiit 0/ Labor, for September, 1896, by W. F. Willoughby. M. Godin's Solutions sociaks, published in 187 1, is but an earnest of that which has come to pass.
The best-known of English attempts at such a transition is that of Wm. Thompson & Sons, of Huddersfield, manufacturers of woolen goods. The transition was made in 1886. The capi- tal stock is about ;^6,000 in £\ shares, and about £1 1,000 loan capital bearing 5 per cent, interest. The latter belongs for the most part to Mr. Thompson. The shares are held by working- class cooperative societies, by trade-union organizations, by 150 employes, by other workmen, and by twenty-six other persons "interested in the movement." Mr. Thompson is president and manager of the society, removable only by a vote of five-sixths of all the members of the association and five-sixths of all votes capable of being given at a general meeting. He also may appoint his successor. The " manager shall control all business carried on by the society, and engage, remove, or discharge all assistant managers, salesmen, or employes of every description, and fix their duties, salaries, or other remuneration at such rates, and require them to give such security, as he may determine, subject to the duty of regularly reporting all such acts to the committee." The committee's functions are mainly advisory.
Profits are divided as follows: ( i ) to a depreciation fund ; (2) in paying 5 per cent, dividend on share capital ; (3) in form- ing a reserve fund ; (4) in educational funds ; (5) in subscribing to the cooperative union ; (6) to an insurance and pension fund ; the remainder of the profits are divided into two equal parts, one of which is divided among all persons who have been employed by the society for not less than si.x months as a bonus on wages, and the other half among the customers of the society. The
