would be but very small dividends, there might arise occasions when the employe stockholder would be demoralized to an extent when he would actually become so discontented that his efficiency would be impaired.

Moreover, it is claimed that but very few employes can purchase stock on a cash basis (some say because of their general improvidence) and therefore the inducement to enter into this relation will make no real appeal to the ordinary workman. Managers, superintendents and foremen might be benefited by ownership of stock or in profit-sharing plans, but being human and not divested of selfishness, such would have more or less influences in depressing wages, to increase the distribution funds, thus benefiting themselves, but actually ignoring the rank and file of working people who might have been paid larger wages if these plans were not employed.

It has been contended, further, that the payment of a bonus, in addition to salaries and wages, has a tendency to cause undue reliance to be placed upon that expectation, which if not fully realized, would cause so much disappointment that discontentment would follow. That feeling, coupled with the belief that because they are expectant beneficiaries, they cannot ask for increased wages or other privileges and benefits, would utterly destroy a true sense of proper relationship in these attempts to promote welfare work.

A concluding thought upon the foregoing topics brings the conviction that every plan for welfare work has some merit, and that none is capable of universal application. One form may be better adapted to certain occupations and localities than another, but whatever plan is used, the ultimate success of it will depend very largely upon the management employing it. A purpose to do what is right and a close adherence to the principle of the Golden Rule will bring but few disappointing results, no matter what method may give direction. How fully these ideas have been realized in practical application can be learned in the accounts following, to which the attention of the reader is now invited.

SOME CONCRETE PENNSYLVANIA EXAMPLES.

Fortunately employers of labor in the State of Pennsylvania have not wholly neglected the opportunities offered by the various forms of welfare work and profit-sharing to establish better relationship between themselves and their employes. In various sections these methods have been successfully used and, except in a few cases, they have not been abandoned because the plans were failures, or proper

ends were not attained; but there has been much evolution to more perfect degrees of the same plans, or something still more liberal or beneficent toward those needing such aid. Albert Gallatin, of Philadelphia, the owner of glass works, employed profit-sharing plans as early as 1794, but how successful they were, judged by present-day conditions, is not known. In Pittsburgh H. K. Porter had profit-sharing features in connection with his business as early as 1886. A year later bonus systems were adopted by Philadelphia firms and were systematically and successfully carried on, but particulars or results of such operations have not been given to the public.

The mercantile establishment of John Wanamaker, of Philadelphia, has a satisfactory system of reward for usefulness and faithfulness, in addition to the payment of wages. One plan contemplates the payment of extra bonus every six months, the same to be computed on the number or amount of sales; fidelity and efficiency have been promoted by these means.

The Public Ledger management, of the same city, has given a bonus of ten per cent. on wages paid, and also made provisions for pension and insurance systems to benefit faithful employes.

The profit-sharing system instituted in April, 1910, by Joseph Fels, for the benefit of the employes of Fels & Co., manufacturers of soap, in Philadelphia, has attracted great attention. He provided that employes in service, three years or longer, should receive in annual dividends fifteen per cent., based on wages earned by them. Those who had served less than three years were to receive a smaller dividend. Modification of plan has been made to permit larger payments for longer service and restricting the payment of bonus until a certain period of service has been attained. The plan of paying bonus, on a proper wage basis, has been found satisfactory. Welfare work has been promoted also by Fels & Company, who have greatly advanced the sanitary conditions of their factory, making it a model of neatness and providing many comforts for their employes, all of which has been repaid by improved service on the part of their working people.

Contemporary experience was afforded by the Glen Knitting Company of Philadelphia, which recently made a distribution of thirteen thousand dollars among its working people. Five thousand dollars of that amount had been paid in as dues to the shop benefit association by the employes, the balance being supplied by the proprietors of the mills as their contribution to the movement. The payment of these sums was made possible through the greater earning capacity, in consequence of more efficiency and a management unrestricted by

outside influences. The employes were busy and content with the privilege of doing their work in a way agreeable to themselves and their employers, each benefiting mutually.

Heebner & Sons, agricultural implement makers of Lansdale, Montgomery county, have a profit-sharing plan which has been found satisfactory to all connected with that establishment. They commend the idea as worthy of imitation by any corporation. Their testimony is: "It certainly does help to produce cordial relations between employes and employers." The obligation to share profits is self-assumed on the part of the firm. Of their own accord they paid to the men ten per cent. additional wages because of the service given and as a stimulus to still better service, during the year to come. They were not disappointed in their workmen, nor in their profits, being able to add twelve per cent. to the year's wages. They found it far better to do that "than to be dickering with the employes to increase their wages a little and to have all the contentions that are connected therewith." Owing to depressed business conditions the firm's profits were not as great the past year, but again, without specific agreement or legal obligation, the men received as a bonus twelve per cent. of their yearly earnings.

NOTABLE PITTSBURGH EXAMPLES.

In the Pittsburgh section three specific examples merit attention in this connection. Most comprehensive ownership and profit-sharing plans have been adopted recently by Kaufmann's "The Big Store," incorporated to conduct a department store on a large scale in Pittsburgh. The sponser of these plans is Edgar J. Kaufmann, who assumed responsibility for a donation of at least $1,000,000 of ⚫ the common stock of the company to initiate and carry out the plans which are intended to benefit at least 2500 employes. These, through the operations of the plans, if they would come to fruition as projected, would, in the course of five years, secure valuable stock in Kaufmann's based on salaries they are earning, since twenty per cent. of the stock was to be allotted annually. In a way the store would become thoroughly co-operative through efficient service of the employes. A plan of insurance is to be combined with these features to provide against the contingencies of temporary or permanent disability sustained by employes before the final acquisition of the stock set aside for them. No obstacle shall be projected against normal or unusual increase of salary due an employe because of the manifestation of unusual proficiency. In practical operation the plan

was beset with some difficulties, which are now being removed, but there has been enough demonstration of success to add to the confident belief that the methods sought are practicable and that they will permit a full realization of the hopes of the founders.

The Pittsburgh Coal Company and most of the subsidiary companies, in this and other States, have given encouragement to an Employees' Association which was formed in 1900 to assist employes to save money and invest such savings in the capital stock of the Pittsburgh Coal Company, helping thereby to create further mutual interest between the employers and the employes of the company. Through this means many employes made profitable investments of money which otherwise might not have been saved and in addition secured opportunity to become co-operative factors of the company employing them. Workmen can contract to acquire stock at market price and pay for it on an installment plan, the dividends accruing meanwhile being applied to reduce the same, after interest charges on unpaid balance have been deducted. For the purpose of convenience, in allotting this stock, the wage earners were divided into six classes. Class F, the lowest, includes those who earned $800.00 or less per year, and who were privileged to contract up to 20 per cent. of their pay. Class A, the highest, includes those who earnings are $20,000 or more per year, and contract privilege is limited to 5 per cent. of the amounts earned, the idea being to secure the cooperation of the ordinary workman as much as possible. In case of shortage of stock to be contracted, the lower wage classes are always given preference. Bonuses are attached for satisfactory work and five years of such service on the part of a stockholder workman secures a further dividend.

An additional movement in welfare work was made when, in 1902, the Employees' Relief Department and Pension Fund was created. This also has had very substantial growth and has been of great aid to the workmen and their families. In a little more than twelve years of operation a million and a quarter of dollars have been disbursed as benefits under the rules of these bodies, which have obtained substantial recognition as part of the life of this great corporation. Its friendly attitude and generous policy has been given hearty reception by the employes and while not every object aimed to be secured has had full realization, there has been approximate attainment in every movement. The state of feeling formerly existing has been changed and more cordial relations have been established by these means, which have effectually removed many of the distressing conditions previously existing.

The Carnegie Steel Company of Pittsburgh, subsidiary to the United States Steel Corporation, has a profit-sharing plan based on the ownership of stock of the parent company, which has been in

successful use since 1903. The annual cost of this plan to the company is more than a million dollars but the corporation continues it because of its many good qualities in promoting its own welfare and those of its employes who have been induced to save money and invest it upon a profitable basis. In a number of cases those employes who held their stock for five years practically received it for nothing. The Carnegie Company, however, claims that the greatest advantage of the plan was in teaching employes the habit of saving some part of their earnings at all times, thus forming steady, thrifty habits. The terms offered for the acquisition of the stock were easy and favorable, carrying with them benefits beyond those to the ordinary stockholder. The privilege of buying stock is relatively greater for the lower paid men and monthly payments can be less than $2.00 per share, with a maximum limitation not to exceed 25 per cent. of the monthly earnings of any contracting shareholder. In case of inability to fulfill the contract, whatever sums paid in are refunded with five per cent. interest allowance.

How popular the proposition has been is shown by the statement issued December 31, 1912, which indicated that there were 32,248 employes stockholders under this plan. Their aggregate holdings were more than 125,848 shares of stock, two-thirds of which were owned by those earning less than $2,600 per year.

The Pension Fund of the United States Steel Corporation was established in 1910 by the merging of the $4,000,000 fund provided by Andrew Carnegie in 1901, and $8,000,000 now set aside by the Corporation. This immense fund of $12,000,000 is administered by a manager appointed by the twelve trustees controlling the fund, at a cost of but little more than 3 per cent. of the disbursements made. Some of the principal features attaching to the fund are: Compulsory retirement of women at sixty years of age and of men at seventy years, after twenty years' service; or voluntary retirement after a like term of service, each class ten years younger. Retirement through disability, after fifteen years of service. Minimum pension to be $12.00 per month; maximum $100.00 per month, computation to be made at the rate of one per cent. of the average monthly earnings, in the last ten years of service. The average age of the pensioners, after two years operation, was nearly sixty-four years; and the average term of service was not quite thirty. Nearly two thousand persons have become pensioners and more than $360,000 have been paid out as pensions. The system has become part of the life of the Corporation and will be a strong means to permanently and loyally hold together its diverse forces employed by the company.

The United States Steel Corporation in this and other states has also been most active in various forms of welfare work, such as teaching foreign workmen sufficient English, so that they can more