tries would follow our lead, thus greatly simplifying our business relations with the various American Commonwealths.

Addendum. In all lines of manufacture the employees should share in the net annual profits of the company; but, in figuring the yearly cost of running the establishment and doing the work, there should be included fair salaries for all the working officers, 6% on the actual amount of cash invested in the plant and business (but not on the total capital stock), an annual allowance for a sinking fund to redeem the bonds or other indebtedness of the organization, and taxes of every kind. The net profit estimated in this way should generally be divided on the basis of one-third to the employees and two-thirds to the company, but sometimes, perhaps, on that of one-fourth and three-fourths. The reason why it should not be split on a "fifty-fifty" basis is that the company has to run the risk of standing a loss in bad years, while the employees do not. Only those employees who are still connected with the company at the end of the year, or who have been discharged in good standing, should share in the bonus; and their proportionate amounts should be computed as previously indicated for the case of construction contracts.