Bava Metzia 69: Splitting Profits

Two friends or colleagues might make an arrangement where one's wage comes from a part of their business profits.  The rabbis recognize circumstances, especially regarding the care of animals, where it might make sense for people to be paid more than their wage according to the profits that may or may not be forthcoming.  The rabbis consider what amount of money should stand as one's wage and what amount of money should be paid above someone's wage.

We are introduced to an interesting example.  Two people agree to an arrangement where one person will fatten a cow and the profit will be split.  Instead of splitting the animal and its profits equally, the secondary partner was offered the head of the animal but not its tail.  When doing this a second time, his wife insisted on the tail as well as the head of the cow, but they only received half of its tail.  When he complained, the rabbi said that they should split the head as well.  Any other division of the profits or the animal might look like paying interest.

The rabbis discuss for how long a person should care for an animal in his care before it is returned to the owner its profits are shared.  They distinguish between donkeys, cows, and small animals.   We learn about two Kutim who turn to Jewish judges twice to help them settle a case where the money from iska or wine was divided by one of two partners without the other's knowledge.  Ultimately it is decided that the division of money (high quality coins and heavy coins) is much more simple than the division of animals or other property.  

The rabbis question whether or not it is alright to lend money without charging interest. What if the borrower uses that loan to charge interest to another person?  Rav Pappa believes that this type of interest is permitted, for it does not affect the initial lender directly.

A new Mishna teaches that we can assess a cow, a donkey, or any animal that works and eats.  It is permitted at that point to give the animal to a herdsman for half, which means that the profits of the animal - including its offspring and any losses).  This is not considered to be interest because when the animal works, the herdsman does earn a wage in order to avoid the laws of ribit.  The minhag determines whether or not the offspring are raised with the herdsman.  Further, a mother cow or horse and her offspring are assessed together.  The mother works and thus the herdsman does not need to be paid a wage to avoid collecting interest.  Finally, one may increase rent on his field and lend money to the renter (so that the renter can continue renting the land) without worrying that this is charging interest.

The Gemara elaborates on why this last point is not charging interest.  A baraita is quoted where a renter may borrow money from the landowner to improve the property and then the renter will pay a higher rental price.  This benefits everyone, for the owner's property is improved and the renter's business is improved.  This is also true regarding bettering the mast on a ship.