III. (2)

Here I would point out that the Report of the Trades Union Commissioners is not only erroneous as regards questions of theory relating to industrial partnerships, but is, in point of fact, positively opposed to their evidence. They say:

“It must be remembered that, as regards Messrs. Briggs' system, the principle is to limit the profits of the employer, and to give the workman, over and above his wages, a share in the profits of the concern, without subjecting him to any liability for loss. It is, then, not unreasonable to suppose that many capitalists will prefer the chances of disputes with their workmen, and even run the risk of strikes and temporary loss, rather than voluntarily limit their profits to 10 per cent., or any other fixed amount.”

These statements totally misrepresent the system which we are going to consider. The Messrs. Briggs, as we shall see, do not allow of any fixed limit to their profits. Instead of 10 per cent. being their maximum profit, it is rather a minimum, since the interests and energies of the workmen are enlisted in ensuring them this amount, which is a first charge upon all the profits of the establishment. It is true that any excess of profits above 10 per cent. is shared with the men; but considering that the men, by abstaining from all strikes, agitations, or loss of time, and by promoting in every way the success of the firm, have greatly diminished the risks, there is not the slightest reason to suppose that the average profits of the masters will be decreased. The men cannot earn any dividend without an equal amount going into the pockets of their masters. Again, I venture to assert that this arrangement is entirely sound in principle, and that the arbitration and conciliation so much recommended by the Commissioners, although a good makeshift, is entirely unsound in principle.

But fortunately the time is past when this question need be discussed as a matter of theory only; it is now a matter of experience. It has been put to the test in more than one instance, and under circumstances which will meet every objection. The results are of a most conclusive character.