Wages and Profit-Sharing. by R. N. GilchristReview by: Henry VivianThe Economic Journal, Vol. 35, No. 139 (Sep., 1925), pp. 449-450Published by: Wiley on behalf of the Royal Economic SocietyStable URL: http://www.jstor.org/stable/2223228 .

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1925] GILCHRIST: WAGES AND PROFIT-SHARING 449

the rate of pay to be fixed by " social evaluation," until " through industrial democracy economic freedom is assured." The inter- national control of industry, " though as yet in the future, is cer- tain of fulfilment." But if all men are to work hereafter, one may perhaps ask the question, since labour is exerted on different planes, what measure of the intensity, duration, and efficiency of labour will ultimately be insisted upon? Is it any reply to point out, generally, as we may, that Australia claims to have increased its private wealth from pre-war ?325 per head to ?400 per head of population in 1921.

Mr. Parkinson regards State railways, municipal services, etc., as examples of " a spurious Socialism." Thus the typical State railways of Australia " are nationalised, but they are not socialised, and they are certainly not owned by the people of Australia, who, in fact, only hold the equity of redemption. They belong- except nominally-to the British capitalists who advanced the money which enabled the railways to be built." We may ask, however, where and how British capitalists have any control over the management and returns of the State's railways. As Mr. G. D. H. Cole admits, Trade Unionism exists to carry on the class struggle, and " if industrial democracy is the end in view, Labour has a long way to go, and must set its own house in order before it can hope for any great success." We cannot help regarding as still doubtful the author's conclusions that Australia has a legislature ready to enact communal ownership, that capitalists are mere creatures of circumstances, for whom it is only right and fair that the " revolution " should be made as easy as possible.

A. DIJCKWORTH

Wages and Profit-sharing, with a chapter on Indian Conditions. By R. N. GILCHRIST, M.A., Labour Intelligence Officer, Bengal. (University of Calcutta. Pp. 422.)

PART I of this book reviews various methods of industrial remuneration. The case for and against the Time Wage, the Piece Work Wage, the Premium Bonus, Scientific Management and other systems of payment are fairly stated.

Part II gives a useful account of many Profit-sharing and Co-partnership schemes, coupled with a reasoned statement of the difficulties which accompany this method of advance towards the solution of industrial problems. Profit-sharing and Co- partnership are, we are told, the " outward and visible signs of the yearnings of capital and labour to find peace and good-will."

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450 THE ECONOMIC JOURNAL [SEPT.

Part II is perhaps the most interesting and useful section of the book, dealing as it does with the general conditions of labour in India. It shows how different the problem is as between the East and West, and illustrates the danger of assum- ing that things called by the same name mean the same thing. A Trade Union in India is at present a very different thing from what it is here. The officials of the Unions do not corre- spond with the responsible heads of British Unions. They are often, it would appear, mere adventurers, here to-day and gone to-morrow. The reasons often given for striking, the average workman in Great Britain would laugh at. To students not acquainted with industrial conditions in India, this section of the book should be very helpful.

HENRY VIVIAN

Sharing Management with Workers. By BEN M. SELEKMAN,

Department of Industrial Studies of Russell Sage Foundation. (New York. 1924. Pp. 141. $1.50.)

THIS is a study of the partnership plan of the Dutchess Bleachery Works, Wappingers Falls, New York, and describes how step by step a scheme for enabling the workers to participate in the management and profits of the enterprise has been developed since 1918.

It is one of the largest mills of its kind in the country, and employs about 600 workers, 450 being men and 150 women. A considerable proportion are Italians. The workers now share in the conduct of the business through three Boards-the Board of Operatives, the Board of Management and the Board of Directors. They share in the financial results through the net profits of the Company being equally divided between stockholders and operatives. Net profits are arrived at after meeting the operating and other costs, the payment of the market rate of wages and 6 per cent. to stockholders. Two Sinking Funds are created prior to the division of profits, one to assure the income of the stockholders, the other to assure half-time wages for the oper- atives during periods of unemployment and business depression. The plan was not put forward as a substitute for Trade Unionism, and in practice friction with the local branch of the United Textile Workers has been avoided. The Company say that " there has been no question about the response of the workers to any reasonable demand made by the management to increase the efficiency of the industry." HENRY VIVIAN

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