PROFIT SHARING SCHEMES.
THE HONGKONG TELEGRAPH.
SATURDAY. DECEMBER 6,1919.
CIVIL AVIATION.
remaining after all operating and fixed charges, including adequate salaries and wages, have been
A recent writer to Skipping and met; after provision has been made for statuory and extraordin-Engineering (Shanghai) said:- ary-reserves, and after a fair re- Civil aviation possesses great
is estimated that a rigid airship of other hand, the "in" saya that national fortunes of this counter 3,500,000 cubic feet gas capacity supposing that the money is to may largely depend, the “Amas“ would be capable of flying from be raised in America and trans- points out how exceedingly, une Shanghai to San Francisco carry-mitted hither in cash, since it is desirable it is that there should ing a commercial load equivalent out of the question to transmit be signs of estrangement and-mit- to the weight of fifteen tons. more than a small part of it by understanding between the two
PRINCIPLES ADVOCATED BY AN AMERICAN turn has been paid to the stock potentialities as an aid to the de-Apart from the "trunk" airways means of bills of exchange, it will as there are now.
BROKER.
t
tu
ад
holders on their investment. This velopment of commerce, and we mentioned, there are many possi-cost 1,200,000 for carklage by surplus should be divided in an know that there is at our disposal bilities for internal aerial com-ses alone, and should carriage on
Deficient in Knowledge. agreed definite percentage between a new means of communicationmunication in such countries as land from New York to San Fran
But this is only one of the many the officers and employees and the which can be employed in opening Canada, Australia and China. Incisco or Tacoma be included, the
are total cost of transportation will be examples illustrative of the na In the discussions "now taking but also after a fair return to stockholders. The amount accro-op far distant portions of the Australia and China, there place as to the relationship which the stockholders and the setting ing to the stockholders should be world, and in establishing postal great industrial areas unconnect nearly 12,000,000. Besides, owing tional defect now under consider should exist between capital and up of proper reserves.
added either to the surplus ac-and other services in districts noted by railways, and vast stretches to the various difficulties in theation, the "Asaki" self-condemn.. Jabour, much stress is being laid Bonus System Criticised. count and thus become an addi-yet served, or only partially serv-of productive country in which no way of arranging for hold spaceingly concludes. "In the analysis on the establishment of the part- Profit-sharing must not be con- tional investment on their part in ed. by other methods of communi-facilities for communication exist and effecting insurance, etc, it of this particular feature of the to cation, especially in China. Avia- In countries such as these air-will be well-nigh impracticable to Japanese people-their defective nership. It surely needs no argu- founded with stock subscription the property, or distributed ment to prove that this is desir-plans and bonus systems. De them, in whole or in part, as extration, if properly guided, will help craft has also a wide scope for accomplish the transfer to time, adaptation to international com to say nothing of the advantage or mon life-we note that the nation, able, but it can exist only if there sirable and advantageous as these dividends, as may be determined still further to secure the inter-survey work.
Long-distance fights under com-disadvantage of redeeming the including statesmen, merchantsand, is a real understanding of each sometimes are to the employees, by the management of the enter- rational development of industry, other's problems. It must be bas- they cannot replace à real and prise. The amount accruing to but we must remember that it as mercial conditions will be broken bonds in cash in place of conver-others, are deficient in knowledge up into stages, at which, in order sion in Japan. It is said, adds and insight which should be ed on mutual good-will and con- continuing interest in the earn-the employees should be distri-set in its infancy. - fidence, and there must be un-ings of an enterprise, fluctuating buted to all officers (including In some countries air transport to reduce the strain on engines the same journal, that the money brought to bear on the solution of year by year in proportion to the possibly members of the Board of must necessarily be limited in it fresh pilots will be held in readi- etc., at less cost and with greater case of intelligent and well-inform and personnel, fresh machines and may be sent from India, Hongkong, problems in hand. Even in the reserved co-operation between em- ployer and employee.
results achieved. The payment Directors) and employees who opportunities on account of the In any scheme of industrial de of a cash bonus at more or less have been in the service for a excellent railway communications es
ease, but then it may be asked how ed men, their point of view is apt mocracy the worker should have a regular intervals becomes in time specified period, with a larger and also by reason of the uncer-
Since aviation will affect close-much gold is to be found in India to be narrow and insular; and even topercentage additional wage,
those receiving tain weather conditions which pre-
ly and in voice in determining the condi- simply an
ever-increasing available for the purpose; and we though there are some thoughtful tions of his employment. there which the worker is certain to ad-smaller salaries and wages and to vail. The home aerial routes degree the interests of all nations, may safely leave Hongkong out of men in and out of the Government should be insurance, pension, and just his living.expenses, and there-those longer in the service.
In these circum- they are lacking in the character The which have been tentatively estabit was recognized as essential that consideration. benefit plans, there must be con- fore does not induce saving or en-officers and employees should be listed offer, nevertheless, import air laws should be established on stances, concludes our contem- and decision which characterize the leaders of foreign nations. tentment, based on proper working courage thrift. The temptation is classified according to the salaries ant advantages if they are used basis applicable uniformly to porary, the upshot will be that conditions, and there should be too great to spend it as it comes they receive and the service they as feeders for the trunk routes to The effort was to ensure, so far ed in the shape of bills of ex- will do well to reflect on and re- 88 many countries as possible. part of the sum will be transmitt- These are points which the nation participation by the worker in the in. In addition, if it is fixed, as render, and these in turn accord-places abroad. In the interim results of the enterprise, so that is usually the case, at an arbitrary ing to length of service, so that there is the minor consideration of
as was humanly possible, that no change and the rest will be sent form if it is to play a creditable his interests and those of his em- figure. it is bound to give the a proper distribution can be made. pleasure flying which will assist precautions should be omitted to in from America, India and Hong-
part in international politics here; ployes may, as far as possible, be- worker the feeling that he is not A table should be issued showing in educating and preparing public and the security of those who re-
protect the safety of those who fly kong.
after." Y100,000,000 is, no doubt, come identical, It is to this last getting his full share and that he what each one in each classifica-opinion, and will help towards a main below, and to permit at the
As Yet Untutored.
a large sum-it-is one-tenth of the phase of this important subject is not really participating in the tion would receive on the basis of realization of the practicability of same time the utmost freedom for of the Nation." the "Tokio Asahi,”
In an article entitled "Defects capital of Lord Leverhulme's soap that I am addressing myself, and profits of the business. A pure some definite sum distributable 30 air transportation. And, as time individual effort in the direction a moderate middle-class organ, worth all this anxious introspec business-but it hardly seems stock subscription plan is simply that it could then be easily figur-goes on, the continued improve-of producing new and experiment says that, innumerable as are the tion." The Japanese bankers ap- in discussing it I am doing so, as terms of corporate enterprise, but invest. with the privilege of paying ceive when the announcement of of aerodromes nearer to the cen- what I have to say is just as ap-in instalments. Unless there is the distributable amount is made. tres of industry will open wider, of course, be regarded as per-serious of them all is perhaps that to the conditions they could get for plicable to those privately owned. added to the annual return on the The real crux of the situation possibility for development. This mament in character. They will it is not yet sufficiently accusa renewal of the loan. The chorus There can be no true partnership stock he thus acquires a special is what form the distribution aspect of civil aviation is one that formity with the probably chang life.
be subject to modifications in contomed to international common of alarm greeting the return of the if either element has an unfair ad-dividend, because he is an em-1should take. It should not be in should interest municipal authori-ing aspects of air navigation.
This may, it suggests, be vantage over the other There ployee, there is no participation cash, as this is almost certain to tes
due to the fact that the country money is like that felt by an Orion- must be no secrets as to the results by him in the earnings of the com.be of no permanent advantage to
It will. in most countries. be has been open to foreign inter- tal creditor when his bills are paid of the operations of the business. pany beyond that accruing pro-the employee and does not assist period of great difficulty, especial- tions to ensure that the regula- and is not so experienced as the displeasure and a sign that busi- The next year or two will be alone of the Air Ministry's func-course only for the past 50 years he often takes it as a mark of
a matter of convenience, in the giving the employee a chance to fed by each one what he is to re-ment in aircraft and the locational aircraft The regulations can- defects of the cation, the mostparently made a miscalculation a
thropy or of charity.
recent article:-
10
portionately to any other stock him in, securing a permanent in-
for ly terest in the property. It should holder.
not a
we may try
manufacturers.
per cent. tice was signed, and manufac-nautics, though it must and will
.#
SCOTTISH OIL.
there must be full disclosure. se that the worker knows he is get
Large tions are carried into effect-but Europeans and Americans are in ness relations are terminated. It ting his full share and that it is
Varying Returns.
be in the form of some security plant has been laid down, much it is felt that, at all events during the matter of international deal is somewhat grotesque that alarm thus to his interest to secure the It may be argued against profit which it is to his interest to hold. of which had not attained its the transition period between war ings. Whatever the cause may be, should be felt at the appearance of maximum results. There must be sharing that men working in dif- I suggest non-negotiable, re-
maximum output when the Armis-and peace, the industry of aero this lamentable truth has, it says such a sum on the Japanese money no paternalism, no interference ferent concerns, but in a similar gistered convertible 6
been brought home more painfully market. Ten times the amount is with the personal liberty of the capacity, will receive different re- debentures, convertible into cash turers are faced with the problem wish to fend for itself, should re- than ever by the attitude recently needed to restore, the yen to its employee, no savouring of philan-wards for the same class of work at the option of the holder after a of a radical reduction in Govern-ceive as much direct assistance adopted by the Japanese bankers proper value. In England the only because one happens to be employ-cert in period, say three years, ent work and a hesitation on the from the Government as possible. more especially by the Japanese anxiety expressed is that the Not Money-Making Scheme. ed by a successful employer and but even during that period re- part of transport firms to place Two ways, for instance, in which Government-in their negotiations money owing may not be forth- Ax William Cooper Procter. another by one who makes but deemable by the company, in case orders until commercial types such help can be afforded are with with the British Government in re-coming. President of the Procter and Gam-meagre profits, insufficient to per the holder leaves its service. 1 have been satisfactorily evolved. regard to aerial navigation in all gard to the repayment of certain | ble Company, has well said in emit of a distribution. That is feel convinced that if the em The adage of not putting all one's its phases, including air maps, British bonds, which has resulted
ture: but, after all, that is one of ployees once get the habit of hold-eggs in one basket is one for the charts, and surveys, as well as in having the bonds paid in cash. The boxing for petroleum on the
manufacturer "No one can build a sound pro- the inequalities of opportunitying them, either in their original aircraft
to-day. beacon stations, aerial piloting The terms and conditions insisted Scottish shale oil-field on the £t-sharing plan on the desire to which are bound to exist, no mat- form or converted into stock of Those firms, such as shipbuilders, marks, and signals of every deson by the Japanese syndicate by borders of Edinburgh and Linlith- make money.
You must be poster now
to prevent the company, they will, except in which in peace had great business cription, and meteorology. In the way of commissions, etc., mar, the gow has been stopped. The ex- sessed of the conviction, not only them. Even so, the hardship is case of emergency, continue to do in other directions, and only took last direction indeed, we may look "Asaki" says, have been reason-pert workers from the United that a fair share of the profit ex- great one if profit-sharing so and thus accumulate a real re-up the manufacture of aircraft in forward to the time when the able enough in the present circum-States have returned home, it be isting without the profit-sharing plans are predicated on and are serve fund for themselves and the war to assist, should return whole of the world will be em-stances, but it may be doubteding stated that their contract was plan belongs
to their original interests, and braced by a network of meteorolo- whether they the worker, supplemental to adequate com- their families.
were so essential completed. The work has been but that under the profit-sharingpensation. It should be borne in Encouragement of Thrift.
those which can devote some of gical stations interconnected by that they were justified in insist in progress for seven months, and plan the worker will produce mind, however, that profit-sharing As an additional encouragement their surplus plant to the construc-wireless telegraph, sa that the ing on them at the risk of bring the progress was slow, whinstone, enough additional to pay his profit is primarily applicable to and suit- to thrift and as a reward for con- tion of beats, motor bodies, rolling pilot or aerial navigator will being about cash redemption. This is very hard, being encountered sharing dividend. Your interests able for manufacturing and protinuity of employment I suggest stock and the like, may find it enabled to determine the weather risk is defined as including first, ander the shale bed. It is not must be primarily in the men and oucing concerns where there is a that the debentures be cashable at easier to bridge over the difficult prevailing and forecasted in any injuring the prospects of a defla- officially conceded that boring seeing that they have the oppor direct relation between the work-a premium on an ascending scale, period of the infancy of commer-locality through which he will tion of the currency, a crying need has been abandoned, be those tunity of earning, through increaser and the goods produced. It is dependent on the length of time cial aviation..
here for the purposes of regulate with experience on the Scottish ed interest, the-additional money: not so easily adapted to enter they have been held and the holder It is felt that a far-seeing policy
ing prices, the redemption of the shale oil area do not believe there and, above all, you must realize prises, such as public service cor- has remained in the employ of in regard to aviation will bring
British bands being possibly pro is any flow of oil, and that the that it is more than money that porations, where the rates received the company. For instance, it its rewardy as has been the case
ductive of a deal of evil without only method of extracting oil is the men want, it is a sense of are fixed by law and the service might well be provided that their with the development of sea and
any compensating advantage. by the process, conducted by the ownership, that can be, in part rendered by the employees is more cash value should be 102 per rail borne commerce.
The pria-
Secondly, another thing to be re-companies on the Mid and East at least, developed through profit-arbitrarily defined.
cent. after five years and 105 per ciple to be followed in aiming at
membered in this connexion is Lothian shale folds, of raising sharing. Without this unselfish
Basis of Distribution.
cent after ten years and there-all-round' improvement in the de-
that the fact of the tiation holding the shale and thereafter extract- motive on the part of the ent- In my opinion, the salaried after..
sign and construction of aircraft,
a large amount of British bondsing the oil in the surface retoris. ployer, profit-sharing will never be officers should participate in any The greatest handicap to indus- is the attainment of security, re- Surprise is naturally expressed serves to 'mhance the position of a success, for both he and the profit-sharing plan, and it should trial economy and efficiency is liability, regularity, together with in these days, says the Japan the Japanese bankers in the eyes A ROBERT DOLLAR BUILDING.
in the end, will distrust each not be restricted. as in most pro-shifting enployment, not only on reduction of cost.
Speed and Chronicle in a leading article, of the world to their inestimable
Architects' drawings of the other and be dissatisfied with any posals appears to be the case, to account of the expense and waste great climbing power, the essence when a nation pays its debts, and moral and material advantage fo
those working for a daily wage. It which this entails; but even more of the fighting machine, can be the Japanese Government and business, purposes.
seven story concrete building to distribution made."
be erected on Canton Road ad- Proft-sharing might well be might possibly be advisable to in-so because of its effect on the subordinated in commercial craft backers have been taken aback Business and Politics. joining the Union Building, for
service rendered until these three objects have been by the unexpected turn the nego- called savings sharing, as in the elude even the members of the quality
Thirdly, and of greatest import-Messrs. Robert Dollar Company.. tiations have taken relating to the ance, is the. relationship between have been received in Shanghai. final analysis it is the economies Board of Directors, who are, after There can be no economy and real attained. in operation and the increase in all, the highest officials, rendering efEciency unless the workers feel
It is apparent that one of the redemption of the Y100.001,000 of Britain and Japan, who have been Construction of the building is to British Yen Exchequer Bonds doe Allies since 1902. A League of begin about January 1 the work
20
of
pass.
BRITAIN'S DEBT TO JAPAN.
REDEMPTION OF THE YEN
-EXCHEQUER BONDS.
production resulting from a real important services. They are fre- that their efforts have a real re-createst functions of aircraft is on the 15th proximo. Owing to Nations has indeed been formed, having been delayed because of. participation by the workers in quently not large shareholders,lation to the success or failure of a connection with long-distance the serious difficulties-evidently but it is so, ill-founded a structure a shortage of material caused by-
and received, under the prevailing the enterprise with which system in America, but nominal are connected. compensation for their services,
they
communication work between the
turn on the capital invested is de- called "tantieme" system prevalent vert his debeatures into cash. AsDepots also are being established terms insisted on by the Japanese commercial dealings need not ne-ing." The pleas were drawn by This, of course, is not feasible, which provides that after a cer-right would probably be rare. France, Italy, the Mediterranean.viously thrown out that it might sacrificed ta, politics; but in case architects, of New York and
of capital and labour are not the Board of Directors to make reserve the right to redeem deben-
tal does not necessarily represent serves,
the north
reaching India at Karachi
after a telegram had been receiv-1
are
and
LEON IN CHINA. -
Daja,
process
the fruits of their industry which "will make available the profits to
As a precautionary measure the dominions and Crown Colonies ofg in the way of the repayment that it is highly desirable, that the the steel strike. One year is the be shared. Theoretically
the Empire, and with this in view of the bonds, whether by bills of Anglo-Japanese Alliance should re-time estimated to be needed for the ideal situation would be a wage contrary to the practice of most company should reserve the right plans have been prepared in the bankers concerned were perfectly of the two Rowers and the basis of which is to cast approximately exchange or in cash, the Japanese main the key-nate of the diplomacy construction of the building· other leading countries. to require, say, 60 days' notice of Air Ministry for main air-lines to confident that the British Govern- the peace of the Far East Of Taels 400,000. The building will scale fluctuating with the earnings of the
We can learn much from the so- the intention of the holder to con- India, Australia and of the enterprise, just as the re-
the Cape.
ment would end by conceding the course, our contemporay proceeds, he named "Robert Dollar Build- pendent on the profits realized. in many European countries, in the case of savings banks, this
The route to India will cross side in spite of the suggestion pre-cessarily be mixed up with, or Messrs. Murphy but in considering plans for the tain statutory dividend has been ever, availed of, but it is a neces and from Sollum, an establishment of industrial part-paid a definite percentage of the sary protection against times of nership, it must not be overlocked. Surplus profits remaining is pass-crisis or of acute financial string-coast of Africa, will proceed via pay the bends in cash. Their con- the inconveniences felt as a result Shanghai. The Robert Doller first, that the respective positions ed to reserves, (with the right toency. The company should als/Caire and Damascus. to Bagdacfidence was so great that even of a given commercial transaction Company will use two doors for are comparatively slight, it may its own offices, and the remain- In discussing aircraft we are ed by the Specie Bank that the often prove advantageous, in the ing five floors will be rented out parallel, and, secondly, that capi- additional appropriations for re-tures at their cash value, applica perhaps a little apt to overlook bonds were going to be paid in long rua, both in political and as offices.
cash they still doubted whether not exceeding a certain ble at the time, in cases of involun- the possibilities of the flying-boathe telegram, really represented commercial interests, to put up) wealth, but is often made up of amount), then a definite percen-tary termination of service and of like the aeroplane, which the final decision of the British with such incnaveniences. During the contributions of many people tage goes to the higher officials death and permanent disability,chine has for various reasons, not i
It is reported that the amouat: the war, the financial co-operation Government. The bankers case of an employee the least being the question of still in the dark as to how the feat between Britain and Japan went of iron manufactured in China, of moderate means, who also, like and to the Board of Directors, but in the
the service of his own the wage earner, pre dependent on and the final balance is available leaving
aerodrome accommodation, per- period a certain for extra dividends to the stock-accord within the income they receive.
of transmitting the funds will be on in a highly satisfactory manner, through the modern The stockholder takes all the holders. They have gone to an after the receipt of debentures the haps reached for the moment its achieved in due time, but usa says the "Ascht generously will- totals 4,009,000 tons a year, while maximum economical size, the fly- risk; he can earn a return on his extreme in giving those directing redemption should be at par anding-boat is still capable of great precautionary measure it has been ing to let bygones be bygones in 3,000,000 tons are manufactured investment only if the business is the enterprise a share in the re-interest.
suddenly decided that public bonds the little disputes concerning em- by the old method. The amount development. When the problem should be issued to the amount of bargoes and shipping; and it is a of iron ore deposit at various profitable, and even in that case suits, and in most cases have ap- must frequently do without divi-parently largely overlooked the
Y50,000,000, with special induce well-known fact, it says, that, mines in the country is estimated
dends so
3 to strengthen the fact that the general run of em-vertible into stock of the company, rough weather has been solved, all ments for holders of the British whatever may have been the case at 633,988,000 tons. enterprise by reinvesting its earn- ployees are also in a position to at the option of the holder, thus the sea will be its aerodrome. bonds to take them in payment of with other matters, this at least deposits in Hupeh is 73,838,000 inga. The employee, on the other make a material contribution to enabling him of his own volition, hand, receives his compensation its success, and should, therefore, at such time as he deems well, to waterways and cross seas which went bonds with a view to pre- made a very favourable impression Kiangsi aze put at 119,460,000 and
venting the money market being on London society. This being 23 a first charge on the business, receive consideration.
secure an interest in the company, at the moment, if not impractica- undesirably affected by so sudden so, it is all the more deplorable. 4000,000 tons respectively,
A plan of this nature combines ble, present danger to the aero-
that the situation now threatens to his salary or wage forms part of
GOLD EXPORTS FROM US. How the Money Will Come. the operating expenses, and must which seems inadvisable is that profit-sharing, an encouragement plane, which once on the water an influx of so large a sum.
change suddenly for the worse. It The "Yamcto" giver expression cannot be believed that Britain
According to the United States be paid even before interest on the distribution is in cash, and to saving and an eventual inter cannot, from the very nature of
The primary thus becomes simply additional est in the enterprise, and avoids, its construction, resume its four to a report in circulation when it now wants to pay the bonds in Department of Commerce, in nine bor owed money. return to labour is practically compensation A combination of fin my opinion, many of the objec-ney. In this regard we have re- guaranteed, while that to capital the two plans, providing for both tions which have resulted in the cently had an object lesson in the says that the gold will be brought cash, our contemporary thinks, but months this year the United D00 worth of gold of which is dependent on the results achiev- officers and employees, appears to failure of profit-sharing plans in successful crossing of the Atlan- on a battleship in order to lessen she has been forced to the decision | States exported nearly: $226,000,-
authorities of the Bank of Japan anese side. Considering that there be no partnership which does not the one which should be followed clearly understood by the em N.C. 4-
For really long-distance trans the matter, adding, however, that and many other matters on which exported $109,000,000 worth of say that they know nothing about are the problems of loans to Chins America and $116,000,000 worth to Asia. The United States alads cess of an enterprise should have presents a portion of the income of
the enterprise after all chargestions are not generally favourable the opportunity to participate.
bare been met, that it is in no to the employment of aeroplanes times transported by men-of-war operation between British and worth to China. Practically all The basis of a profit-sharing sense a bonus and that the disör even of flying-boats, and for during the war, it will not be sur Japanese bankers and that it is these exports were made on bekait ustning not bals after payment plus de pairs with the surplus are surplus proffs to be divided, prove to have a great futats. It saopted in this instance. On the
Another feature in their system
1.
Stock Interest.
The debentures should be coc-¡
of construction for endurance in
Such a vessel could navigate
The ore
tone, while those in Anhui and
ed. It is apparent that there can be the soundest proposition and the past. It must, of course, betic by the American seaplane, the the risks on the way, although the by the terms imposed by the Jap$59,000,000 worth went to South
1ecognize these factors, and that All who contribute toward the sucployee that such a distribution reoceanic flying, however, the condi considering that specie was some there should be a harmonius co-silver to India and $89,000,000
any scheme of profit-sharing, if it
is to te effective, must provide that the profits or surplus income
Plan Suggested.
to be dealt with shall be those re- of adequate salaries wagen, must deal only
prising if this method should be
од such co-operation that the of Europe,