Page:American Journal of Sociology Volume 2.djvu/69

Rh pieces of soap, by allowing them to fall upon the floor and become trampled under foot. This dirty soap used to accumulate so rapidly that it was necessary to work over the accumulation every two or three weeks. Now it takes three or four months to accumulate a sufficient quantity to be re-handled. The effect of saving by the employés can also be seen in the general air of tidiness and cleanliness about the factories. The testimony of the members of the firm is, that the plan has been a success, that it has exceeded if anything their expectations. "Profit-sharing," says one member, "has proved to be good for both employer and employé."

What would be done in the event that no profits were earned, or a loss incurred? This is a question which the company has never been forced to meet. The position of the company however has been expressed by the secretary as follows: "The employés should not stand any portion of a loss. The wages that are paid them are paid for the ordinary efforts that laborers usually exert. The profit-sharing dividend is paid them for the extraordinary labor and care which they give in return for the dividend. Under these circumstances, if the business in which the profit-sharing system is in force should show a loss, we can see no reason why the employés should stand a portion of it, because they in reality do sustain a loss. The capital invested would certainly be no worse off than in a business where profit-sharing was not in force; but on the contrary, would have received from its employés better service than if such system was not in force; and the loss to stockholders has thereby been made less than it would otherwise have been. Under those conditions we certainly think that it would be wrong and a hardship to ask the employé's to bear any portion of such loss; from the fact of their having given extra labor and care, for which they receive no compensation."

We have considered the advantages chiefly from the point of view of the employer. The benefits to the employé are obvious. He receives as high wages as are paid elsewhere plus his part of