PROFIT-SHARING.

Dominion, Volume 5, Issue 1303, 5 December 1911, Page 5

PROFIT-SHARING.

ADDRESS AT THE NEW ZEALAND CLUB. An address on the subject of that interesting question in commercial finance, which is known as "profit-sharing," was delivered at n. Now Zealand Club luncheon by Mr. T. C. Taylor, M.P., of England, yesterday. Mr. Taylor's viotvs on the question have already been very fully reviewed in The Dominion. During the course of liis remarks-, Mr. Tavlor pointed out that thero wern two kinds of labour —physical and brain. Railways, for instancy, were built to a £reat extent by navvies, but there was also tho civil engineer and others who plaved important, parts in the construction work. All these latter people earned their money us honestly as the navvy, and the equity cf their claim rested ou the samo principle as tho navvy's—the value to tho community of the service rendered. As to tho status of employers, if an employer was merely a shareholder ho was entitled to the capitalist reward and nothing else, but if, in addition, he managed the business he was entitled to a reward for his lalwur just as any other worker. Profitsharing meant paying full wages before declaring any profit. The theory was that tho fust claim on the business after its debts had been paid was that of wages and salaries. Mr. Taylor said that this profit-sharing system bad been tried in his business in England for a number of years, and had worked well. There were difficulties to overcome, but, in tlio course of time and with mutual confidence, that could be done. Ho explained that lord Furness's schcmo (which had not been a success) was not a profit-sharing scheme. It was an agreement that the workers would not strike if ho would not lock out; and he was to sell them shares, uot give them shares. A vote of thanks was accorded Mr. Taylor at tho close of his remarks.