THE ERNST ABBE LEGACY.

Press, Volume LXV, Issue 13378, 20 March 1909, Page 7

THE ERNST ABBE LEGACY.

•by k. R"!-~h-> -rai. raK-s.") 1 ,1. v.)•■■<• bis wealth I.U-1 Any man who d-*-'"----nL- t<> th" imp.-cv-m-nt ot *-' ;__ ~., ,„ r :iikl , ?:1 .,;- ; ,i •elation- '•<■-■•"' " , , _ -, wav a-- '" •' ' '■ **•' nSB ervc'iu-i by *,tri'«*s and Un-\z- ** "£_ Z r,-_i, S - 1 **„ a public ,„_, rati*"- »- ■ of,lo i <,r '. Mb, vh» V-, ■*♦- **ne **„*_■ optical -voru.s ... J0... Un > Jjv 4_taMislied '-us .!..:'..l t- th- tlth philanthropist o; th.- highest or.-r. the vol only 1..:'« in--* p-,,-erty to £*-_, he W -_orv.-l th, h'.:-- * and at the — ume i -.:ard,d ; ho workers iron, lock-nuts, and ga*.e Aem-nch an int-nst in the .uc-«- = ,f tho.factorj* that iii-y c0..1d ■-...« _tbiDg whatevr by si n.-.n--. lh. f _»■*_>*-. s,t-:'_r"' v to •*-<>] v-* in° itory t»f ,jW - s **'' ; — . , rtT ilx. problem is so f-.-..--ht with sugration, that its p-'r-ral cannot ta.l to J« of Taint* *<> anyone- * iio ta _.*.-. an ntelligcnt interest in the great eeoncaic Strug-*!'' **-hi<*h is new i-iking place jet-veen capital and lahotir. In order to convey a correct idea >f the evolution of the Zci.'-s works and ibcir present position as an object lesion to the industrial world, it is csBntial that a description should he rJTcn of their initiation and remarkibl* development. Somo sixty-two fsara ago a skilful trades-man named Carl Zeiss opened a small workshop in Jena for tho purpose of supplying microscopes, or any other optical instrument for which ho could obtain orders. To assist him in his irtrrk he employed one journeyman and two apprentices, but orders came in so ilowly that master and employees often rent short of necessaries. But Carl vas not the man to bo d'tshi-art-eneei by » few roverses. lie plodded on month ifter month, turning out tho best goods he was capable of producing, until at length his skill and integrity brought inch an increase of business, that in 1857 he had to take larger premises. Nine years later, recognising the defects of the rule of thumb method, hy which optical instruments wero at (hat time made, he determined to outstrip his competitors by seeking the assistance of a high-class mathemati-

. ciaii, who could apply his knowledge to the improvement of tho microscope. Tho man he selected was Ernst Abbe, a University "Don," who, in 1863 had established himself in Jena as a tutor in mathematics, physios and astronomy. The problem submitted to Abbe, was tho determination, in advance, of the data required for tho correct construction of optical instruments. After

•working for some time, Abbo declared that tho old, time-honoured theories of the formation of microscopic images wa3 wrong, and ho then formulated tho principles which govern the construction of tho modern microscope. In 1875 x\bbe and Zeiss became partners, and their union had far-reaching results. From the t'mo Abbe devoted his scientfic attainments to the improvement of the Zeiss instruments tho output of tho factory increased _o rapidly that year by year additional premises hid to be provided for extra workmen. As Carl Zeiss grew okier and loss fitted to copo with tho cares

of the growing business, its manage-

ment devolved more and more upon tho younger partner. Abbe, knowing the value of scientific control in the

manufacture of scientific instruments, plaoed each department in his factory m charge of a learned specialist, upon whom devolved tho duty of deciding npon the best forms of construction for tho various instruments made by th'r firm. Under these University graduates, of whom thero are now .forty; are practical foremen who give off act to the instructions of their chieis, and the work itself is done by a body of highly trained men noted for their intelligence. In 1881; Carl Zeiss's •West son joined the firm, but after th© death of his father in 1888 he retired, leaving Ernst Abbe sole proprietor of tie works. For most men this would lave been a favourable opportunity to enjoy a well-earned fortune, but AtSbe lad a nobler ambition. In 1801 ho •necuted a deed by which he ceded the Ctrl Zeiss works and all his proprietary liS—ts in various inventions and creat•d what is known as the Carl Zeiss StJrton_ or Trust. The effect of this deed was to place w;works and their capital under the

•Smtrol of a selected body of men who

*»•_ Bound by certain carefully pre**»red statutes to administer the estate iritaioh a manner that tho largest pos--fjMe number of workmen would finel

permanent employment in the works, Wd so that all profits should be devoted partly to the advancement of science »na .partly to the benefit of tho people «jf Jena. The essential principle of this need of gift is that the enterprise it•eli shall, for all time, be the nominal •entity which owns the works and that, ' p7 tho aid oi the* trustees, it shall be JU o~_ proprietor. The order in which j&tere-ts rank in the enterprise is as follows:—1st: All who have been, aro - low-, or will bo employed in the enterPr***. Snd: Science l , to which the enterprise owes so much, and finally, tho Wvironment in which the enterprise developed. In this plan of distribution M direct account is taken of the capi"W because tho proprietor elected to watow his capital on tne enterprise. Nevertheless strict care is taken that «» capital shall earn a fair interest, ***ea*Me it is from these earnin_s that Wntribritions are made to tlie UniT *2! ty of Jena and to tlie town. The Trust is administered as follows: .--In tho first place the Minister of Eduction appoints a Government official 7**« that the provisions of Ernst «opes statutes are strict Iv observed. f<"*» trustee, who is paid by the enter- £_**_> ' s strictly forbidden to make the of the organisation s thservient W tho-* of the State. The Governing fjwd comprises, in addition to the "J™I*,1 *, members of the boards of m.in-■K-ment of the factory and of the glass "Or!--.. Except in tbe case of the Jwe-ntaent trustee, membership of the "2J™ B of management is an honorary Jrj*: »nd is open only to rK*rsons en- * n **" & w orks. Until his death £ri_"»?' Ernst Abl.e took an active in- {!".__'"_ ***** administration of his trust. jsJ** then Herr Max Fischer, who in i™**. nndertook the task of consolid.it"K the business, and Dr. Otto Schott, ff* Proprietor of the glass works, have **«"_ the most active pnrts in the deof the enterprise. ___" sv,< *<*ess which hits attended the "WU Of those who have been inthe- duty ol giviog effect statutes- is' remarkable, the lu,ar, tV of the whole organisation the ultimate reciprocal relation- ,"_* between the means and the end.

!A few facts will serve to show tin? progress ot riie bu_:i_.->s under such novel conditions, j In 1591 there were 700 employees in I ihe two works. To-day there are 3000. During the r;u:r.e period the sales have I moru than trebled, and the net profits I hive? enabled the trustees to distribute I tens of thousands of pounds annually I r;> Jena and it:_ L'rnver-ity. Since the i business way established tbe town has | boconii an industrial centre, and the I ["niversity has been rnabltel to extend ' it.s ii'.uctioi'.s in v manner that would | have he,-ii imp.'.-" ible without the large ! -rants that have l-ee-n made to it. i The works which now belong to the I '.-ntcrpri.-e consist of the instrument faci tory. covering tour ar.re-s iv tiie centre

'o; the town, a r.hare of IJr Otto Schott's ' large glass work*, situated in the ■ suburbs, ar.d an electrical power-house ! which is connected by cable with the ] works. The commercial field of activity jin the town building is practically j limited to the construction of niicroS scopes, telescopes, iirid-glasses, cameras 'nnd r.llied apparatus, one ot ihe esse-n- ---| tial conditions of the trust being that | the scientific method of producion shall i lie maintained. Another condition is ; that ;hc prices at which the inaiiul'acI tnrcd goods are sold, nnd the- amount ;ed wages paid, must be st) adjusted that ■ the net profit shall be equal to 10 per i cent, of tho total expenditure. As it is not possible for the managers io know, until the books are hahuie-eil, the exact sum available for wages, the em I ployees receive a definite average wage |or salary, according to their positions, j and at the end ot the year, if there is i a -urpliis, it is paid out pro rata. Apart from tlie actual wages or salaries, the employees are entitled to many benefits |in tho shape of sick pay, and after I five years' service, if incapacitated, to n p'n~ion varying from 50 per cent, to j 75 per cent, of income.

At the age of 65 an employee is entitled to retire on a pension amounting to 75 per cent, of his previous income, and the widow and children of any person engaged in the enterprise is entitled to f'O per cent, of the pension that would " havo boon payable to thc deceased.

The nrovisions make it impossible to dismiss a worthy employee without giving him six months' pay and a quarter of the pension to which he would bo entitled if incaptcitateel. Under no eircumst.nncps may an employee- whose health is bad be ds- ;- missed with the object of saving tho pension. Another advantage is that all standard holidays amounting to eleven or twelve days in the year, and also a yearly holiday of six days. are paid for at standard wages. Wedding presents aro made and gifts bestowed to celebrate length cf service, and grants of money are also mado to assist tho employees in becoming possessed of _ home. Tho rules also provide that special payment as an honorarium may be made for exceptional scientific, technical, or economic activity on the part of an employee. Rewards are also given for practical proposals for tho improvement of tho business in any respect. These proposals have to be made in writing and a motto must be appended in lieu of signature, so that the identity of the writer may not be disclosed till the award is fixed. In 1900 an experiment was tried by changing the nine-hours system of work to one of eight hours. The reI stilt showed that 4 per cent, more was done per man than had been accomplished in previous years. The workmen themselves were surprised at this rcstdt, as they were under tho impression they had dono no more per hour when working eight hours than they did when working nine. As a matter of fact, the men hi consequence of the shorter hours had been enabled to turn out about one-sixth more work por hour than they could when working an hour longer. Needless to say, the works are now carried on under an eight-hours system. At first,, sight it might appear that the advantages enjoyed by the Carl Zeiss Stiftung could not profitably be accorded to employees by firms in which the capital belonged to private persons who simply carried on business for their own profit. On reflection this impression is dispelled, because the profits made, by tho Carl Zeiss Stiftung are seen to be sufficient to give a handsome and constant return for tho capital invested. In the adjustment of mutual interests which is now being sought alike by labour and capital, some sacrifices must be mado on each side in order to avoid the calamitous results of lock-outs and strikes. It seems highly probable that some plan, closely resembling that which is formulated* in the Abbe statutes, will be found the best means, in permanent works, of establishing harmonious relations between employees and employers.