Page:American Journal of Sociology Volume 1.djvu/709

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C. G. Conn, manufacturer of band instruments at Elkhart, Ind., adopted a system of profit sharing in his establishment in 1891, and later in his printing office. After ascertaining the gross receipts for the year the proprietor deducts as his own share 28 per cent. This includes, (1) remuneration for services as entrepreneur, (2) interest on invested capital at 8 per cent., and (3) royalty on patents and use of proprietor's name. From the remaining 72 per cent., the running expenses of the year were next to be deducted. The surplus remaining was to be divided among employés as follows: In order to stimulate the five superintendents to careful oversight, twenty cents were to be given to each of them for every instrument manufactured and sold during the year. The remainder of the profits was to be divided in the ratio of ten, six and four among the employés who had been in continuous employment for at least one year, according to their membership in one of three classes; membership to be based on length and character of service. More than 80 per cent, of the two hundred and more employés now participate. While it is difficult to determine the ratio of bonus to wages in such a system, yet for the first two years it amounted to more than 12 per cent. The justification of the plan is stated by Mr. Conn as follows: