CAPITAL AND LABOR.

Nelson Evening Mail, Volume IV, Issue 136, 12 June 1869, Page 2

CAPITAL AND LABOR.

To the Editoe op the Nelson Evening Mail, i i Sir,— Since my last communication on the above subject, I have seen an abstract of Mr. I Brigg&'s exposition of his scheme which he , recommends for "adoption in all branches of j trade." It is as follows— *" j 1. The manager and workmen to be paid salary and wages at the current rate of remuneration. 2. Out of the profits a preferential interest to be paid on the capital invested equal to the average amount of interest and profi: in the particular class of business. A sum to be also reserved, if necessary, for replacement of plant or stock. 3. Any balance of divisible profit to be " divided as a bonus, in the form of an equal percentage over the aggregate amount of capital invested, and of wages and salaries earned during the period in which such profit has accrued." Each workman will thus receive a proportion of profit calculated according to the amount of his wages earned, or " labor-capital " for tbe time 4. The managers may, if they think fit, reserve a proportion of the profits to form an " invested capital reserve fund," and a ," labor-capital reserve fund," apportioned between the two in the proportion of the capital to the gross wages, i 5. Where business is liable to fluctuations, if in any year there have not been made profits sufficient | to pay the preference-interest on capital, the* deficiency to be made up, either out of the reserved - funds (if any), or out of extra profits in future years, before distributing any part of them as bonus. And in like manner provision may, if thought desirable, be made for the capitalisation of reserved funds when an extension of the busi- ! ness is deemed proper. The Pall Mall Gazette, speaking on this subject, says that it need hardly be pointed out j that the working of any such scheme as ; this ' [implies not merely «onsid«abte business capacity

on all sides, but the most perfect honesty and candor in the capitalist or master; and we should have thought the difficulty of -working out the arrangement very serious if Mr. Brigga and others had not practically shown that it may be overcome. This scheme, of course, will require modification in the colonies, especially as regards wages to manager and workmen, and all those employed by the Company; a great proportion of which, at first at least, must be taken out in shares, so as to put tliose receiving pay on an equality with the capitalist who invests his money. I am, &c, E. T.