LETTERS TO THE EDITOR
• WORKERS AS PARTNERS [To the Editor of the SPECTATOR.] SIR,—Mr. Eric G. Underwood in his letter criticizes my article in your issue of August 14th, in which I explained a scheme for selling ordinary shares to workers on favourable terms. Mr. Underwood says I give away. the whole of my case when I state : "the scheme is suitable for any company whose shares normally stand at a prerniuri.'"there are many companies whose shares do ordinarily stand at a premium, though in periods of serious trade depression they May fall temporarily below, par. . There are also some companies whose shares, in spite of the War, have alwaya remained above par. The scheme of share-purchase I suggested is suitable for these companies.
Mr. Underwood also 'says : "the employer who encourages his workpeople to Place their savings in the shares of the company for which they work is incurring a very grave responsibility," and he adds, a man should not put all his labour and his capital in the same business. If an employer offers to his employees shares in a prosperous company below their market value, he is treating them much better than the shareholders, and the employees need not invest all or a major part of their savings.
The scheme has been in existence for many years in our company, and the habit of thrift has been greatly encouraged by it. The employees have invested £22,000 in ordinary shares, at par, and very rarely sell them, although the divi- dends and share values have fluctuated considerably. In addition they have £26,500 on deposit in the company's savings bank (amply secured by investments held by Trustees), and they have bought over 100 houses, aided by loans from the company. I know that by these and other schemes con- nected with the company. they have saved over 00,000, and, of course, there are other forms of saving of which I know nothing. 'Title scheme for share-purchase by employees which I sag. gested is not an untried theory, but a practical method which has stood the test of peace and war, prosperity ad adversity. It encourages thrift and self-reliance, and is appreciated by the workers, and as these figures show. they do not "put all their eggs in one basket." The workers desire to have a greater share of the wealth they help to create, and our scheme gives to them, on favourable terms, a share in the profits and the rights of shareholders. Time and experience have proved the value of our scheme, and if it were adopted in other coin. panics I feel sure that many of the workers would be glad to purchase shares on these favourable terms.—I am, Sir, &C.,
W. Howanp HAZELL
(Chairman of Hazel, Watson and 'Viney, Ltd.). 52 Long Acre, London, W.C. 2.
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