par value of such stock is only ten dollars, and may be paid for in instalments. Such special stock shall not exceed two-fifths of the actual capital of the corporation. Whenever a dividend is paid, the holders of such stock receive their full proportionate share. Special stock can only be sold or transferred to employees or to the corporation itself, and the by-laws may provide as to the number of shares of such stock which may be held by any one employee, and the methods of transfer and redemption of such stock in case any person holding it cease to be an employee. (Mass., 1886, 209.)

This statute has not, however, proved effective, and it has not been copied in other states.

§ 44. Profit-sharing.-Except as above and in section 42, there have been no statutes passed in

in their by-laws, in addition to the matters enumerated in section three hundred and three of said code, provide:

"1. For the number of votes to which each stockholder shall be entitled, and,

2. The amount of profits which shall be divided among persons other than the stockholders, and the manner in which and the persons among whom such division shall be made." Cal. Civil Code, 1878, p. 63, § 1.

"There is also a recent and elaborate statute providing for the incorporation of co-operative associations for any lawful business, in which "the rights and interest of all members shall be equal, and no member can have or acquire a greater interest therein than any other member has," wherefore it appears likely to become a dead letter. See Cal., 1895, 183.

any of the states regulating the subject of profitsharing in the ordinary way. There is, however, no legal objection to an employer's determining wages or part of the wages paid by the amount of profits of the business, and such a relation will not effect a partnership between him and his employees. It is possible, however, that such an arrangement would be difficult, if not impossible, in states where weekly payment laws exist. (See discussion of this subject in section 21.)

10

CHAPTER V

STATE REGULATION OF FACTORIES, MINES, AND WORKSHOPS

§ 45. The Factory Acts. (See also §§ 17, 18.) The precedent of the English factory acts passed originally in 1831 has been very generally followed in nearly all the states. The right of the state legislatures to impose such regulations by law rests upon the Police Power, which we have discussed in § 4. Such statutes are doubtless constitutional in any case where the reason of the regulation is based upon considerations of the public health, safety, and comfort, or the health and morals of the operatives, and is apparent on the face of the statute; but it will not do, under the guise of police regulation, to pass statutes of which the real purpose is different, even though they be in the interest of any particular trade or otherwise desirable. Such regulations or reformations can only be attained by combination among the workmen themselves to see that they are complied with.

The statutes which have been passed on this subject are very many in number, but among the more important may be mentioned the following:

1

Statutes providing for the preservation of the health of employees in factories by the removal of excessive dust, or for securing pure air, or requiring fans or other special devices to remove noxious dust or vapors peculiar to the trade; 1 statutes requiring guards to be placed about dangerous machinery, belting, elevators, wells, air-shafts, etc.; statutes providing for fireescapes, adequate staircases with rails, rubber treads, etc.; doors opening outward, etc.; 5 statutes providing against injury to the operatives by the machinery used, such as laws prohibiting the machinery to be cleaned while in motion, or from being cleaned by any woman or minor; 6

3

2

1 Ct., 1893, 204; N. Y., 1892, 673; N. J. Sup., p. 773, 25; Pa. Dig., p. 866; Mich., 1895, 184; Md., 27, 148. Against noxious vapors by fans, etc., see: Mass., 1894, 508, 38 and 39; R. I., ib., 9; N. J., ib., 24; Mich., 1887, 136; Mo., 8220; Cal., 1889, 5; La., 1890, 123.

2 Mass., 104, 13, 14; R. I., 1894, 1278, 5, 6; Ct., 2265, 2266; N. Y., ib., 16 and 18; O., 2573 c; Mich., Wis., 1887, 549; N. J.; Pa. Dig., p. 865.

3 Me., 26, 26; Mass., 1888, 316; P. S., 104, 15-18; Vt., 1892, 83; R. I., 1890, 286; Ct., 2645, 1855, 254; N. Y.; N. J., 1890, 63; Pa.; O., 2573; Ill., 1885, p. 201; Mich., 1875, 1841, 6; Wis., 4575 a; Minn., 24, 263; Del., 1881, 546; Va., 1890, 199; Mo., 8220; Dak., 1887, 544; Ga., 1889, 610; La., 1888, 87; D. C., 1887, 45; Wash., 1891, 81; Mon., 1891, 282; Wy., 1891, 80. 4 Mich., 1895, 184, 7; N. Y. "Mass., 104, 19; N. J., 1887, 177, 6; Wis., 1636 c; Mich., b; Miss., 2088; Dak.

6

Mass., Ct., N. Y., N. J., ib., 17; R. I., ib.; Mich. Compare §§ 14, 17, 18.

9

laws requiring mechanical belt shifters, etc., or connection by bells, tubes, etc., between any room where machinery is used and the engine-room;8 laws aimed at overcrowding in factories, and at the general comfort of the operatives; and many special laws in railways, mines, and other special occupations, such as the laws requiring warning guards to be placed before bridges upon railroads,10 requiring the frogs and switches or other appliances of the track to be in good condition and properly protected by timber or otherwise,11 providing automatic couplings to both freight and passenger trains, and, in building trades, providing for railings upon scaffolds and for suitable scaffolds generally.13

12

There are most elaborate statutes and several constitutional provisions regulating the conduct of mining industries, the condition of mines, the use of safety cages, etc., in the states where the mining industry predominates. 14

'N. Y., ib.; Pa., ib., 17; Mich., ib.

8 Mass., 1886, 173; 1890, 179.

9 N. J., v., 23; Wis., 1636 f; Mo., 8220; N. Y., ib., 14; Md., La.

10 N. Y.

11 This statute is being rapidly adopted in all the states. 12 R. I., 1884, 1282.

13 N. Y., 1889, 214; 1885, 314; Md., 1894, 158.

14 N. Y., 1890, 144, 394; Pa., 1885, 169; 1891, 177; Ind., 1891, 49; Io., 1884, 21; O., 290-306, 6871; Vol. 83, pp. 165-182; Mich., 1887, 213; Md. Loc. L., 1888, 196-209; Mo., 7061-7077; Wash., 1891, 81; Mon., 1891, p. 282; Wy.,