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Vol. III. No. 529.
THE EVENING BULLETIN.
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ou Fob. 3rd, the following oflk-orn were
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W. It. Castle Vico President
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S27 3t Secretary.
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. Honolulu; Fob. 6, 1807. 620-2w
PROFIT SHARING SYSTEM
'biioui.it we hi: voktunate
E.Vorjfin tw cr.r ANr.xri.."
AUIe- i:ay by V. C Jnnea-I'inniliient
Planter Who Would ntd
of Cniltrxi Lnbor.
Mr. and Mrs. W.R. Castlo en
tertained the. monthly meeting of
the Social Scfonco Club at their
homo, Victoria and Kiuan street's,
yeBtejdny evening. Thoso present
were ,ob follows, about evenly
divided between members and in
vited guests: Prof. P. A. Hosmer,
W. E. Kowoll, Prof. W. D. Alex
ander, Prof. A. B. Lyons, Dr. An
drews, Hov. O. H. Gulick, V. R.
Castle, Jas.'B. Castle, Qeo. P. Cas
tle, Rev. O. M: Hyde, D. D., J. B.
Atherton, Rov. O. P.. Emerson, Dr.
N. B. Emerson, Rov. D. P. Birnie,
Chief Justico A. F. Judd, Asso
ciate Justico W. F. Frear, P. O.
Jones, Rev.,S. E. Bishop, D. D.,
Dr. Maxwell, Mr. Hurd, Prof. M.
M. Scott, Dr. J. M. Whitnoy, Prof.
Theo. Richards, Captain Hanford
6f U. S. 8. Alert, J. Hyde Pratt of
New York State, Dr. Wobber, Prof.
Wood, W. N. Armstrong, Attar1-noy-Qoneral
W. O. Smith, B. F.
Dillingham, Col. W. F. Allen,
Senator H. P. Baldwin, Q. L. Ed
wards, J. T. Crawley, U. Thomp
son, Mr. 'Adams, late of Winchen
den, Mass., and D. Logan.
Rev. Mr. Emerson presided.
Dr. Hyde read the minutes of the
previous meeting, which was
devoted to a discussion of the
sewerage question, Mr. Hering
the engineer, of Now York, hav
ing been present. A desultory
discussion followed upon mi
crobes, water, mosquitoes, etc.
Mr. Jones road tho papor of the
evoking,. his. themo-being "Profit
Sharing." At the outset he re
marked: "The subject of profit
sharing is ono that does not seem
to have received by employers, in
this or other countries, tho con
sideration it deserves. In mak
ing inquiries for works upon this
study, it is surprising to note how
fow havo been published. Maga
zines have from tirao to timo pub
lished' short articles. Newspapers
contain contributions and editori
als upon tho subject, but it is
difficult to get direct or roliable
data or much of serious interest
from these." Tho latest publica
tion ho know upon tho groat ques
tion was by -N. P. Gilman of
Massachusetts in 1893,in which
many facts and statistics ,had
been gathered, which in the paper
would bo liberally quoted.
Amrtnrr anvnrnl mniUnAn fvinrl
at various timestjjy which labor
ers or common' Hands have shared"
in the profits of a business, is tho
plan of product sharing, or a divi
sion of the material or produce
raised. In agrioulturo, this has
beon in vocrue from the nnrlinnt.
times, and has also been, and still
jh, jjriiuiiBou in ine nsnonos, ana
in mining.' There are objections
to this in nrrionlture. nq it ilnnn
not encourage the farmer to muko
improvements; Mr. Gilman says:-
"Tho wnrlrinr nf tlin anil hv lm
proprietor himself tends to be
come the nrcdominnnt rpmmn
over' tho surfaco pf tho globe." He
iurtner ueoioros mat fow attempts
havo vet been mado to annlv the
principle of partnership to agri
oulturo in tho more doveloped
form of profit sharing. Timo
wages, pioce work, quality prices,
porcentago on sales, economy
prizes ana co-operation are among
some of, the other methods that
have been used.
Mr. Jones doemod it unneces
sary to use time in discussing any
of thoso methods except that of
co-oporation. It had boon adopt
ed to a considerable extent in
somo of our homo industries, and
was a vital interest to tho Islands.
Corporation has boon described as
a movementf roin the sidt of tho em
ployee to suporsode wages, also an
effort on tho part of tho employeo
to got rid of tho employer. The
author of tho papor dissentodfrom
the following opiniou in tho Ha
waiian Stat of December. 21, 185)0:
"Thfysnrt of co operation in cano
culturo that has succeeded in Ha
waii litis little or nothing of the
very pretty but impractical prdlit
snaring about it. In straight co
operation, as one soys, 'everybody
js a shareholder ami overybody
considers himself a boss.'"
Tho essayist presented lettors
from W. W. Goodale, manager of
Ouomea Sugor Co:, and V. Kin
nov. late mnnnnnr nf Hmmnm
Sugar Co., saying that each con
tribution was of intorest, "as both
gentlemen are practical farmers,
who have introduced, with consid
erable success, co-operation on es'
tates in their management. The
dealings with the workmen on theso
two plantations have been quite
at variance. One purchases tho
cane by its estimatod weight; the
other pays for the juice by actual
measure, so much per clarifior of
500 imperial gallons."
Mr. Goodalo sent a copy of a
"contract for cultivation made with
Jas. Deveroaux by which he was
paid a stated sum per aero and
provision was made for a bonus
on the yield if it exceodod four
tons per aero and forfoit if tlje
yield fell below four tons per acre.
De'vereanx was a careful cnltiva
tor and the result of tho transac
tion was in every way satisfac
tory. Tho yield excoedod by a
small amount 400 tons and a bo
nus was paid him. This would
bo a satisfactory form of contract
if tho right men could be hud to
take charge of tho work." He al
so forwarded a copy of a contract
made with a Japanese for cultiva
tion of a field for a stated sum per
ton of cane. It was ono of about
six similar contraotB and tho re
sults hod been satisfactory to Mr.
Goodalb, ho Bays and continues:
"Tho contractors havo divided tho
proceeds among themselves ao
cording to arraugomonts made by
which they individually shared in
the profits. They toll me that they
have made from 818 to $25 per
month; their wages in tho planta
tion gang3 would not have exceed
ed Slo per mouth. In settling
theso contracts I have very fortu
natelybeen able to settle without
woighing tho cane nnd so made
quite a saving to both parties. If
cane was loaded on to cars as it is
at Ewa and somo othor places,
that would not be any additional
expense, but hero whore tho enno
must bo weighed alongsido the
flume or iu tho field it makes a
groat deal of handling and a loss
of time. Whjlo tho results so fur
from this form of contract havo
been satisfactory to all parties I
should not care to go into it very
Auothor form of contract for
warded is one in force at tho time
of writing, by which Wong How
plants caue on shares with the O.
8. Co. ou land which ho owns or
otherwise controls. Ho has about
fifty acres of land situated so near
tho ,mill that by taking 'special
paiuB the manager v can keep the
mill running full, and bo keep an
nnmirntn nnminnl nf liia -inina Tim
same is trueof other plantors likoj
U.UUJU1 uuu mu uuiuu jruriugueso
who raise cano on homesteads.
When taking off suoh fields Mr.
Goodale's custom is to make a two
wooks' run on plantors' cano and
that of the company, and then
clean up the mill, sending tho
sugar of tho two weeks' run
forward undor a distinguishing
mark, and dividing tho proceeds
according to. tho'units of density
or purity of tho rospectivo juices.
"Tho plantors who work undor
this system havo all made monoy
with tho exception of Kama!,' who
from hia nennlinrlv TTnwniinn
.methods of doing business baroly
Keeps nis uoaa aoovo water." Uno
Portuguoso is noted as having
done particularly well with his
w Mr. Goodalo has also a system
without contracts, whoreby Jap
anesoraise cane on side hills and
in ravines, where tho ground is
too stoop for plowing with ani
mals, or on small patches detach
ed from tho largo fields. Ho gives
them tho froo ubo pf the land, and
last year ho paid 83 a ton, and
paid out 10,512.39 to the com
pany's laborers for cane raised by
them undor this system. Tho
cano was grown in patches of
from one-quarter of on aero
to three acres and in lots
of. from 10 tons to 200 tons.
"The work is done ovoningB, holi
days and to a certain oxtont on
Sundays," Mr. Goodalo says, "60 '
it is hard to got at the actual coht
to tho planters, but at- tho prico I
paid them last year thqy are said
to have made money, aud from
the tact thnt tliey continue to tako
up avery available piece of land it
would seem that tlify nro satisfied
witji- tho results. The effect of
this upon tho men is good in.ovory
way and besides tho gain to the
plantation from the sugar itself,
wo" nro benefited by the improve
meut in tho dispositions and great
er industry of the men who own
the cano and their iufluonce upon
the others. It is expensive band
ling these littlo lots of cano some
times and there are always annoy
ances of one kind or another, but
thegenoral effect is so good for the
plantation and the men that tho
trouble can bo easily borne."
Mr. Goodale Rays the conditions
at Papaikou are not favorablo for
co-oporativo plans on a large
scale if the cane has to bo weigh
ed or the juice measured, but
the contracts like thoso. mado with
Deveroaux and tho Japanese are
good if a modo of settling cau be
agreed upon that docs away with
such weighing and measuring. In
conclusion ho says: "During tho
laBt throe years there has been au
obuudanco of labor in this dis
trict, and no disturbance of any
kind, so that very littlo attention
has boon paid to othor systems of
cultivation than the ono I havo
Mr. Kinney gives full details of
his plan of paying according to
the quantity of juico in the clari
fiers. A lucid synopsis would
take more space than can here bo
afforded. The different kinds of
work are contracted for with many
companies of Japanese laborers,
who havoa method of keeping
thoir own accounts, with their res
pective companie's. Hore are
some of the results given by Mr.
"We are nover bothered by thoir
inward or local bickerings, and
never have uny disputes in settling,
because every transaction appears
in their pass books just as in our
owU record, and clean settlements
are mado at tho end of each
"The influence upon tho lives
apd bearing of theso mou is
"Ovor throe-fourths of our cul
tivation is douo under this system
aiid it practically gives us a homo
guard of nearly "two hundred mon
against any disorder likely to
aifept tho welfare of tho pla'co.
"Still another beneficial featuro
growjng out of this systora is tho
boni&hmeut of foul fiolds. Tho
ground in this district, oven deep
into tho subsoil, is infested with
untold numbora of dormant weed
seeds, and ns soon as it is stirred
or exposed to tho air, moisture al
ways being present, tho weeds'
spring up millions to tho aero.
Each company is intent,
upon keeping down its own work,
in different parts of, its field, just
as each particular spot needs
work, so that as a. rule fow if anv
weeds are allowed to scatter thoir
seeds, and in a fow years you nro
rid of foul fiolds, Fiolds whoro
wo paid five dollars per clarifior
six yoarsagonow find eager takers
Some concluding romarks of
Mr. Kinney aro as follows:
"In tho earlier stages of this
movomont, for I will no longer
call it an experiment, notwith
standing much highor rates wero
paid, quite a number of compa
nies failed ovon to cover thoir
advances and had to
havo considerable advances
written off. But for the
last throe years not a company
has been sottled with but havo had
cash coming to- them. Inssomo
instances 'they have cleared ovor
$20 por month."
"Wo must look sharp that they
do not cheat us, and sunrpor still
that wo do not oheat thorn."
"The grand fault'of tho Bystom
is its evanescence. It is aftor all
only for tho tlav. It does not
touch the question of population I
and thereby pormanent and
natural labor supply."
Mr. Jones, commenting on the
Honomu method, says: "Some
plan should be arranged, if this
kind of an ngreoment is to bo
continued, by which tho cane can
bo paid for by tho aero or upon
the estimated weight of tho cane,
us nt Ouomea.
. Ho proceeds to say: "Tho
Ewa plantation has a system of
co operation, by winch the luntl is
cultivated on shares. The man
ager calls it 'profit sharing,' but it
is not bo, strictly speaking. In
tho last annual report of that
plantation, for the year ending
Septomber 30; 1890, Manager
Lowrio says: 'This system I
consider ono of the best features
of tho plantation; it insures tho
company, to n certain extent,
ogainBtany soiious strikes; also
diminishes tho chances of fire in
the fields, and it creates the best
of fooling bolween tho company
and laborers. We havo formed
eight new companies, three of
which aro modo up of the new
Chinose, roceived nbont n year
ago. They aro doing very woll, I
think, equally as woll as tho
The conditions of contracts now
in force on Ewa plantation aro
given ob follows:
"The plantation gives uso of tho
land after plowing, furrowing and
planting; makes advances month
ly for food and other necessary
Expenses; furuishos houses aud
fuel, to. bo cut by tho planter; also
uso of water for irrigating; takes
cano from tho fiolds to mill, and
pays a certain sum por tou of
cane, deducting advances mado.
"The planter agrees to furnish
all tools aftor first instance; takes
wator from main ditch to his field
for irrigating; lhys portable track
from field to main track; to caro
for cane, stripping two or threo
times; to cut cano when ripo and
load on cars.
"Tho agreement may be termin
ated at any timo by tho plantation?
manager, or on two months' notico
by the planter."
Mr. Jon os coramonts thus:
"While it may bo admitted, and
certainly tho ovidouco horo intro
duced is conclusive, that co-oporation
is to a certain degree benefi
cial and profitable, yet there is a
still bottor way of dealing with
Mr. Jon s produced a great mass
of testimony to tho success of pro
fit Bhoring in lnrgo employing es
tablishments in both Europe and
America. Ono interesting item
was that of a man tonding machin
ery who saved moro value in lu
bricating oil formorly wasted than
paid his bonus. Applying the in'v
formation givon to local affairfi
Mr. Jones said:
"It is to bo hoped that tho ovi-
denco horo introduced in this
paper, is sulficiout to satisfy all
that profit sharing is reasonable,
just and feasible, and that it is a
system, suitable for many kinds of
business aud one which may be
adapted to tho cultivation of sugar
on all of our plantations with
profit to tho shareholders, aud
with tho happy rosult of bring
ing about such a state of
affairs, as to avoid troublos
and maintain poaco and harmony
among oil employed on our sugar
Against tho objoction that our
labor is not intelligent enough to
comprohond or appreciate such a
reform ho places tho tostimony of
Messrs. Kinney, Goodale and
Lowrio. He Bays further along:
"It would appoar that tho intro
duction of profit shoring on isl
and plantations would bo more
dcsirabloand satisfactory than tho
co-oporation now in voguo on sev
eral estates. All workmen through
out tho group would enjoy its ad
vantages. It would estop dissatis
faction amongst thoso who do not
now havo tho privilego of tho co
operatives'. It would bo n benofit
to thoso who now aro working on
tho co-oporativo plan. Thoso now
so located ofton havo poor land to
cultivato, whereas under profit
sharing they would get tho bonofit
of tho riohost lands on the ostatos,
besidos onjoying thobonefit of tho
ontiro capital and the advantage
of intelligent .management. Again
it provonts any dissatisfaction on
irrigated plantations in tho dis
tribution of wator."
Believing that tho value of his
paper as tho presentation of a
theory would end with its rootl
ing, Mr. Jones, from n study of '
tho subject, tubmittl a plan of
profit sharing to bo adopted by
ono of tho largo plnntations,which
hud been presented to tho stock
holders, and mot with their hearty
approval. It will probably bo
put into effect at once, nnd is hero
Give eveiy one of tho employees
on tho estnto au interest iu" the
profits of tho business.
lVduet all expenses for running
the plantation, aud au ulluwauce
of 10 per cent, for dividends on
tho capital, and allow 20 per cont.
of tho balance as a bonus, .to be
divided ainoug all employed by
tho corporation, the amount to bo
distributed in proportion to the
According to tho results of,
opeintions on tho plantation in
question for four years, ono of
which showed, a loss, tbis system
would havp yielded in that tirao a
total bonus of 804,177.03. ' This it.
oqunl to a bonus to wages of 8.10
per cent, per annum.
Employees would have, received,
amounts as their shares of tho
profits, ranging from S489.G0 por
annum to the manager to $12.2-1 to
tho lowest .paid laborer, which is
equivalent to an extra mouth'B
wages each ycor for tho whole por- -iod.
Ono-bolf of the 20 per cent
is to be paid in cash at tho outl of
the year, aud tho othor half put to
roservo fund, tho disposition of
which is to bo determined by tho
directors of tho company.
Tho only conditions nro thnt all
who participate must have beon
sober, industrious nud faithful in
thedischargo of thoir respectivo
Upon this Mr. Jones concludes
his papor thus: "It may not bo
thnt this will prove to be tho best
plan thnt can be put -into opera
tion, but it will, do to begin with,
and improvements can bo made as
timo progresses, until somo plan
can bo arranged that will give tho
best results to all parties concern
ed." Mr. Jones was warmly applaud
ed as ho concluded the reading of
his comprehensive papor. A
conversational discussiou of the
, Chief Justico Judd thought tho
bouus iu the proposed plan n
small ono, and only 'to bo puid
onco a year. Tho laborer could
make more than that gambling.
t Mr. Jones replied that it wns
enough to begin with. It was an
extra month's pay in a year. Bo
sides, iu tho example given, one
yodr oUt of ,fonr the p'lautalion.
Dr. Hyde Tho manuuer cots
Mr. Athorton thought it would
stimulate tho laborer very much to
bo told ho would got nu extra
dollar oach month.
Mr.' W. R. ' Castlo thought it
would bo a great induoemont to
Chinese and Japanoso, and evon
to Americans. '
. Mr. Baldwin wsq oskod for his
views, as tho most experioncod
man present. Ho said his im
pression was that tho plan adopt
ed by Ewa would bo moro suc
cessful with the' class of labor wo
now hove. Ho had not thought
of profit sharing in that light. If
wo aro fortunoto onough to got
annexation to tho Unitod States,
this would be a good plan, as wo
.would havo a highor class of labor
to doal with. Co-oporation is ub
old as the sugar industry hore. J.
think' it is unfortunato that co
operation was tried so early. It
was moro in voguo botwoen 1805
and 1870 than since. Co-operation
got n black eyo thon from
which it has novor recovorod. My
trouble with it was mostly about
water. It ia easier to como to
terms now booauso tho aro so
many; mon who understand tho
business. I should like to think
of Mr. Jonos' plan. If the laborer
could got liia twelfth part ovory
month it would bo bettor in effect.
Mr. Baldwin spoko in this con
nection of tho amount of wunder-
Contimied on 4th Pnye.
4' ' . - '' ,A,
' t .viarVstt