VI. (2)

I owe to the kindness of Messrs. Fox, Head & Co., a copy of the rules on which their work is conducted, and that we may understand precisely the nature of the scheme, I have prepared a summary of the rules.

(1.) The employers are to have the sole and undisputed control of the works and the business.

(2.) No employés are to belong to Trades Unions.

(3.) Employers similarly are not to belong to any association of employers.

(4.) All questions concerning wages and prices are to be decided at the discretion of the employers.

(5.) Wages will, however, be those generally accepted in the district, but during any trade dispute the old rate is to be retained.

(6.) Working partners are to receive salaries at customary rates, approved by accountants.

(7.) Rate of interest allowed to capitalists is to average 10 per cent. during the continuance of the scheme.

(8.) Amount charged annually for renewals and depreciations of the work and plant is not to exceed on an average 6 per cent. per annum upon the outlaid capital.

(9.) Cost of all necessary repairs are to be charged to the cost of manufacture.

(10.) Costs of manufacture are to include all law, banking, and other incidental charges.

(11.) To meet bad debts a fund is to be created by an annual charge of 1½ per cent. of the gross returns. Should this fund prove insufficient the excess shall be charged to cost of manufacture. Any balance of the fund at termination of partnership to be carried forward should the partnership be reconstituted; otherwise it shall revert to capitalists.

(12.) Surplus profits beyond all the charges and costs of manufacture are to be divided into two equal parts, one half to be distributed to all employés—that is, all who have received wages or salaries during the year—in proportion to the amount so received by them.

(13.) The employers to appoint public accountants to audit accounts and report the result.

(14.) The public accountants to decide all matters in dispute.

(15.) Employés' bonuses unclaimed during one month to be forfeited.

(16.) All employés to share proportionately to the time they have served, however short.

(17.) All dividends not claimed to be carried to the profit and loss account of the following year.

(18.) Any employé joining a Trades Union or legally convicted of injuring the works to forfeit dividend.

(19.) Persons performing work by contract to furnish lists of the wages paid to their assistants, who will receive the dividend direct from the employers; the latter, however, will not be responsible for the correctness of the returns, and will decide all disputes at their discretion.

(20.) Should the year's profits not meet all the charges, including 10 per cent. profit to capital, the deficiency is to be charged to the profit and loss account of the following year.

(21.) Exempts from the scheme a certain patent manufacture belonging to Messrs. Fox, Head & Co.

(22.) No employé to acquire any of the rights or liabilities of a partner, or to be in any way exempted from the laws relating to masters and workmen.

(23.) The scheme is to be considered a continuation of that of November, 1866.

(24.) Employés will be considered as assenting to the scheme by merely accepting or continuing in employment.

This scheme came into operation on the 5th of February last, and is to continue in operation for five years.