jority of the employees, however, have taken advantage of the new offer, and will in future receive the regular dividend paid to owners of common stock as well as the profit sharing dividend, both of which have been of late years 12 per cent. The Proctor and Gamble Company employs some six hundred persons at Ivorydale, nearly all of them of a comparatively unskilled class. The gains are principally a saving of time, a lessening of waste material, the better quality of work, permanence of the working force, decreased need of oversight, and industrial peace. It is claimed that there has been 21 per cent. cheaper labor cost in manufacturing under profit sharing than under the simple wage system.

(7). The Bourne Mills: In the Bourne Cotton Mills, of Fall River, Massachusetts, profit sharing has been in successful operation for nearly fifteen years, under conditions which are usually considered very unfavorable. The wages in this industry are comparatively low, the first cost of the plant is large, machinery plays an important part in production, and the average grade of intelligence among the working people is low, many of them being ignorant French Canadians. Under the plan adopted in 1889, and considered and re-adopted by the Board of Directors every six months since that date, the sum distributed is between 6 and 10 per cent. of the amount paid to the stockholders, and is divided among the employees upon the basis of wages earned. The dividend on wages has ranged from 2 per cent. to 7 per cent., and a special dividend of 40 per cent. of the original

amount is now paid to all persons who have been in the service of the company continuously for over fifteen years. The last dividend was 22 per cent., paid on December 12, 1903. There are four hundred or more employees, and all who have worked faithfully for six months are entitled to share in profits. All those, however, whose names are entered on the profit sharing rolls are required to sign a contract pledging them to faithful service and to promote the interests of the company both in and out of the mill. One reason for the success of the plan is that great pains have been taken to impress upon every employee the duty of contributing his share towards the best possible operation of the mills. It is made clear to all that the company does not intend to make a free gift of money for nothing, but expects each employee to assist in the formation of profit.

(8). The Ballard and Ballard Company: The Ballard and Ballard Company of Louisville, Kentucky, began profit sharing in 1886 by agreeing to give its miller, in addition to a stipulated salary, 5 per cent. of the net profits of the business. The system was extended, some years later, by dividing 10 per cent. of the net profits among the salaried employees, and shortly afterwards all the laboring men who had been with the company for two years were included. At present the company, after the payment of interest at 8 per cent. on the capital invested, takes out seven of its employees, to each of whom is given 5 per cent. of the profits, after which 10 per cent. of the profits are divided among the remaining salaried em

ployees and the laborers who have been in the employ of the company for two years or more, making 45 per cent. which is distributed. The method used in determining the amount of the bonus is to divide the total net earnings by 145 per cent.

(9). The Cabot Manufacturing Company: The experiment of Mr. Samuel Cabot, manufacturing chemist of Boston, was begun in 1887, and has continued in successful operation for seventeen years. In this establishment every employee who wishes to become a participant is required to sign a promise to give a sixty days' notice before leaving, and also "to do his work as quickly and carefully as possible, remembering that the greater the yield the larger the profits." In consideration of this promise, a certain fixed proportion, known only fo the employer, of the net profits, is divided among the profit sharers, according to their wages. One-half of the bonus is paid in cash, and one-half is placed in a savings bank by the employer as trustee. If the employee dies his heirs are at once entitled to the accumulated fund in the savings bank with interest, and if he leaves the works, after giving the required sixty days' notice, the fund remains at interest for two years, and is then paid to the operative, provided that in the meantime he has not sold any secrets or formulas learned in the course of his employment in the Cabot works. In any case this fund never returns to the employer, but, if forfeited by reason of discharge or of leaving without the required sixty days' notice, is "distributed among the other participants at the next

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division." The employer has the right to lend a workman money on his fund for the purpose of building a home. The profits distributed among the thirty-five to forty sharers have averaged a little over 14 per cent. of the total wages earned, and the dividend for 1903 was 21.3 per cent. on wages. During the seventeen years the total amount distributed has been $40,464. Mr. Cabot stated in May, 1904, before the American Social Science Association: "If we can draw any inference it is that, as my profit compared to the wages paid has increased, the efficiency of my workmen has improved. But above all, my observation has convinced me that the spirit of my employees is superior to that of the average and that they are more contented and willing by far than in similar establishments. In fact, I am satisfied that this bargain has been a good one for both parties to it, and that the extra money laid out has been well and profitably invested."

(10). The Baker Manufacturing Company: The Baker Manufacturing Company of Evansville, Wisconsin, which manufactures pumps and windmills, is one of the most important examples of profit sharing in the United States. The plan, adopted in 1899, provides that the profits of the business "shall be divided between the preferred stock and labor in proportion to the earning capacity of each.' The earnings of preferred stock are arbitrarily defined to consist of an annual dividend of 5 per cent., while the earnings of ordinary labor are considered to be the product of the total number of hours employed

during the year by the price of such labor per hour, and the earnings of salaried labor are the total amount received in the year. After provision is made for a sinking fund and for a dividend not to exceed 5 per cent on common stock, and on amounts credited toward the purchase of common stock, the remainder of the net profit is "divided between all the persons regularly employed in the manufacturing business and the preferred stock in proportion to the recognized earnings of each. Fifteen per cent. of this division shall be paid in cash and eighty-five per cent. in the common stock of the company." No person is entitled to share in this division of profits "who shall have been in the regular employ of the company for less than two consecutive years, who shall quit the service of the company or who shall be discharged." Thus every man who has been in the employ of the company for over two years owns common stock and has also received some cash as bonus. "Every share of common stock carries with it a vote in the management of the business." Under this system of profit sharing the earnings of capital and labor were increased; in 1899, 60.3 per cent.; in 1900, 82.7 per cent. ; in 1901, 73.8 per cent. ; in 1902, 98.45 per cent.; and in 1903, 69.17 per cent.

(11). The N. O. Nelson Company: One of the most noted examples of profit sharing in the United States is the N. O. Nelson Manufacturing Company of St. Louis, Missouri, and Leclaire, Illinois. This company manufac tures plumbing goods, and began profit sharing in 1886 as an immediate result of the great railroad strike in the