Page:American Journal of Sociology Volume 4.djvu/824

 804 THE AMERICAN JOURNAL OF SOCIOLOGY

numbered 1,041 out of a total of 1,720 employes in 1895. The associis have entire control of the management of the enterprise. The transfer to the cooperative basis began in 1880, and was completed in 1894. The total capital stock, based on a careful inventory, was 4,600,000 francs. This was divided into founder's certificates, to be replaced by association certificates as the mem- bers of the society came into possession of them. This was done as follows : After expenses of production, including inter- est on certificates, had been met, the net profits were applied to the purchase of founder's certificates, instead of being divided as cash dividends on wages of the members of the society, as was done from 1877 to 1879, after the manner of most profit-sharing enterprises. The dividends were thus paid to employes as asso- ciation certificates, and the founder's certificates were canceled as fast as purchased. The last founder's certificates were replaced by association certificates in 1894, and the society came into complete possession of the property. Since then such dividends are paid in cash. A member now receives, in addition to his wages, profits on capital, interest on capital, and profits or divi- dends earned by his wages ; so that with many wages constitute only 70 per cent, of the annual income. The division of profits is as follows: 25 per cent, is allotted to the directors, and the remainder is allotted to labor and capital. The 25 per cent, is divided as follows: 4 per cent, to the general manager, 14 per cent, to the members of the general council, 2 per cent, to the council of audit and control, 2 per cent, in awards to workmen for exceptional service, and i per cent, for the advanced educa- tion of one or more scholars, these awards being made by the managing council. Out of the 75 per cent, allotted to labor and capital (until 1881 one-third of this was devoted to the formation of a reserve fund equaling 10 per cent, of the capital stock), capital draws a fixed proportion. That is, the earnings of capital amount to 5 per cent, on the capital stock, or 230,000 francs annually. Labor earns a varying amount. The associ^s share in profits on the basis of twice the amount of their earnings, the socictaires on the basis of one and a half times the amount of their earnings, and the mixiliaires and participants on the exact amount