Music Trade Review
Issue: 1914 Vol. 58 N. 4 - Page 3
Music Trade Review -- © mbsi.org, arcade-museum.com
digitized with support from namm.org
PUBLIC --
U*tU
THE
HMEW
[HLflC TIRADE
V O L . L V I I I . N o . 4 Published Every Saturday by Edward Lyman Bill at 373 Fourth Ave., New York, Jan. 24, 1914
SING E 0 P I S
fc of p E | YE 1 AR CENTS
Distribution
T
HE best advertised man for the New Year is Henry Ford, of automobile fame, and it is
interesting to note the variety of opinions expressed regarding his profit-sharing plan,
following the announcement of the distribution of $10,000,000.
The papers all over America, in th? great cities and smaller towns, have given up
large space for comment upon the real motives which prompted Mr. Ford to make this startling
announcement, and all kinds of theories have been advanced. Many have given self-advertising as
the basis. I do not believe that he was actuated by such a selfish motive.
Mr. Ford is not the first American manufacturer to undertake profit-sharing with his employes.
Many have admitted their employes as stockholders. Many more have established a system of old
age pensions supported entirely out of the profits of the business.
Mr. Ford is doing things in a way which is startling to say the least, and I do not see how his
plan could be applied broadly to industry. His su?cess as a manufacturer is almost unprecedented,
and profits cannot be divided in such a manner unless there are profits to divide. Men cannot be
paid a wage of $5 a day unless means can be found to enable them to earn that amount per day.
Now, if all manufacturers measured up to the Ford stature this wage scale might be easy; but,
unfortunately, there are but few Fords—if more than one. Hence the condition which Mr. Ford
creates by his announcement is complex to say the least.
To my mind the just distribution of profits, of labor and of brains in the business world is
not going to be brought about either by the benevolence of capital or the demands of labor—it will
be the joint work of both factors in making reasonable concessions.
The benevolent plan does not seem to work out just right, because every man likes to have
his rewards or honoraria in coin of the realm, like Ford offers, instead of having it put into
libraries or schools, both of which are helpful.
Steadily, surely and resistlessly public opinion is bringing about marvelous changes in the rela-
tions existing between employer and employe, but in my opinion it will be some time before the
world moves up to the Ford experiment in idealism.
There are so many complex features being introduced in our modern industrial life that it will
be indeed difficult for some manufacturers to have any large accumulated profits.
The recent enactment of a new labor compensation law in this State imposes many added costs
upon employers of labor which did not exist heretofore. These are obligatory, and with increased
expenses there may be decreased profits.
!W%%*^
Again, conditions may grow out of the new labor compensation law in New York which will
be more far reaching than ever planned by its originators. In the first place, less men can operate
in the same amount of factory space—hence to conduct the same business larger facilities will be
necessary—therefore, a corresponding increase in factory costs.
Again, the amounts whicli must be paid to the widows of workmen who are killed in the
factory may cause some employers of labor to feel that they cannot carry such a risk, and that it
will be better to employ single men. Then, again, single men will find that if there is a liability
of losing their jobs when they marry, the inclination will be to remain single, hence new social
relations may be created which will not add to the morals of the State,
{C
digitized with support from namm.org
PUBLIC --
U*tU
THE
HMEW
[HLflC TIRADE
V O L . L V I I I . N o . 4 Published Every Saturday by Edward Lyman Bill at 373 Fourth Ave., New York, Jan. 24, 1914
SING E 0 P I S
fc of p E | YE 1 AR CENTS
Distribution
T
HE best advertised man for the New Year is Henry Ford, of automobile fame, and it is
interesting to note the variety of opinions expressed regarding his profit-sharing plan,
following the announcement of the distribution of $10,000,000.
The papers all over America, in th? great cities and smaller towns, have given up
large space for comment upon the real motives which prompted Mr. Ford to make this startling
announcement, and all kinds of theories have been advanced. Many have given self-advertising as
the basis. I do not believe that he was actuated by such a selfish motive.
Mr. Ford is not the first American manufacturer to undertake profit-sharing with his employes.
Many have admitted their employes as stockholders. Many more have established a system of old
age pensions supported entirely out of the profits of the business.
Mr. Ford is doing things in a way which is startling to say the least, and I do not see how his
plan could be applied broadly to industry. His su?cess as a manufacturer is almost unprecedented,
and profits cannot be divided in such a manner unless there are profits to divide. Men cannot be
paid a wage of $5 a day unless means can be found to enable them to earn that amount per day.
Now, if all manufacturers measured up to the Ford stature this wage scale might be easy; but,
unfortunately, there are but few Fords—if more than one. Hence the condition which Mr. Ford
creates by his announcement is complex to say the least.
To my mind the just distribution of profits, of labor and of brains in the business world is
not going to be brought about either by the benevolence of capital or the demands of labor—it will
be the joint work of both factors in making reasonable concessions.
The benevolent plan does not seem to work out just right, because every man likes to have
his rewards or honoraria in coin of the realm, like Ford offers, instead of having it put into
libraries or schools, both of which are helpful.
Steadily, surely and resistlessly public opinion is bringing about marvelous changes in the rela-
tions existing between employer and employe, but in my opinion it will be some time before the
world moves up to the Ford experiment in idealism.
There are so many complex features being introduced in our modern industrial life that it will
be indeed difficult for some manufacturers to have any large accumulated profits.
The recent enactment of a new labor compensation law in this State imposes many added costs
upon employers of labor which did not exist heretofore. These are obligatory, and with increased
expenses there may be decreased profits.
!W%%*^
Again, conditions may grow out of the new labor compensation law in New York which will
be more far reaching than ever planned by its originators. In the first place, less men can operate
in the same amount of factory space—hence to conduct the same business larger facilities will be
necessary—therefore, a corresponding increase in factory costs.
Again, the amounts whicli must be paid to the widows of workmen who are killed in the
factory may cause some employers of labor to feel that they cannot carry such a risk, and that it
will be better to employ single men. Then, again, single men will find that if there is a liability
of losing their jobs when they marry, the inclination will be to remain single, hence new social
relations may be created which will not add to the morals of the State,
{C
Future scanning projects are planned by the International Arcade Museum Library (IAML).