PROFIT-SHARING

Dominion, Volume 10, Issue 3088, 19 May 1917, Page 3

PROFIT-SHARING

AN EXAMPLE FROM YORKSHIRE I BONUS OF 25 PER CENT. Aji example of how happily the pro-fit-sharing principle in business does work out at times was evidenced at the annual meeting of J. T. and W. Taylor, Ltd., which has woollen mills at Uramley and Batley, Yorkshire. Reporting tho chairman, Mr. Theodore C. Taylor, M.P., the "Heckmondwike Herald" said;— "Chief interest centred, of course, in tlio result of the profit-sharing scheme. A i dividend at tho rate of 17$ per cent, on share capital will be paid as follows: 12} per cent, in cash and 5 per cent, in new 5 per cent. War Loan Stock. The bonus on wages will be at the rata of 25 per cent, to employees entitled to double bonus and 12■} per cent, to those entitled to single bonus. Those entitled to doublo bonus will be given. 20 per cent, in War Loan and 6 per cent, in fully-paid shares of the company; those entitled to single bonus will bo paid to employees not less than twenty-one years of ago who have baen with tho company at least five years and own shares equal to half a year's wages. In tho first instance tho scheme applied to managers, and afterwards to foremen, and it was not until 1896 that the whole of tho employees were included. Tho scheme had worked so well that the only alteration of any importanco which had been mado was the Introduction of double bonuses Bevcn years ago. Mr. Taylor next alluded to the company's provident sick fund, In connection with which the company paid half the contributions. Ho said that during 1916 there was distributed £223 in sickness benefit, £109 in disablement benefit, £45 in maternity benefit, and £15 in death benefit. Thcro were tea kitchens at tho mills, ana ho was informed that they were now being run at a loss of £1 per day, but he did not object to tho loss, because ho considered that tho employees received tho value of £5 a day in comfort. (Hear, hear.) Having announced the dividend and war bonus to bo paid for the past year, Sir. Taylor said the War Loan 6took to be distributed in part payment would he allotted as from February 16' and would hear interest from that date. That was an improvement on tho ar--1 rangemenfc in 1916 when interest on War Savings Certificates and Exchequer Bonds could not carry interuntil the exact amount of each individual holding was known. He had arranged at an interview with the Chancellor of tho Exchequer that the i whole sum to he invested should ho allotted in ono amount. Owing to tho War Loan being issued at £95 per £100, each employee would receive stock to tho value of 20s. for every 19s. due in bonus. (Applause.) Ho regretted to find that last year some employees who' need not have done so had sold their War Savings Certificates. J-b was their duty to their King, to their country, and, ahovo nil, to tho men in the trenches, not to sell any form of War Loan until they were absolutely compelled to do so. The nominal value of War Loan to be allotted to tho employees would exceed £20,000, and ho confidently relied upon tho workers not to sell it.' There could bo, r.o finer investment in tho world, and there was no sacrifice involved in retaining it, especially as the interest was so high. If it became necessary to sell, however, there was no more saleable security than British Government stock. He advised any

employee who might bo short of money not to soil the 6crip, but go to tho firm's office and se-9 if it did not contain a generous "uncle." (Laughter.) They would find tho cashier willing to_relievo them of any difficulty without their having to sell the scrip. (Applause.) But he wanted the workpeople to go much further than keeping their War Loan investments. In the coming week about another £20,000 would be distributed by tho company in cash dividends, and the banks would bo open to receive applications for 'War Loan. Ho did not ask tho shareholders and employees to do anything which he himself was not going to do. Ho was going to put every penny he could raise in a reasonable way "into the loan, and all ho asked was that others should do the same. All the £20,000 ought to go into the War Loan, and as much more as was possible, Mr. Taylor next expressed his appreciation of the three War Savings Associations formed in connection with the company's Batley mills. Ho said tliero were 405 members, who had taken up 860 certificates at a.,purchase price of £666 10s. (Applause.) Ho went on to say that when the 1915 War Loan was issued tho company invested £4000. Feeling that there would never again be a chance of making such a good investment of tho reserve fund and of doing so much good with the money tho directors had decided to take up £60,000—(applause)'— which, added to tho £20,000 to which he had already alluded, would make the holding of tho shareholders' and bonus receivers amount to £80,000. (Applause.) If the £20,000 to be distributed in dividends was also invested tho company would have- lifted £100,000 of tho national burden."