turers and managers have found practical exemplification in various manufacturing establishments, as well as in railroad shops in different parts of the country.
Perhaps the best field for a short consideration of this interesting subject, so far as railroads are concerned, is to be found on the Santa Fé Railroad system. The introduction of the individual-effort reward or bonus system of stimulating employees to extra or unusual effort, and of compensating them suitably therefor, is probably the most important of all the betterment work on this railroad. The inauguration of the system followed the strike of the machinists, boiler-makers, and blacksmiths, in May, 1904. The credit for its introduction on the Santa Fé is due to Mr. J. W. Kendrick, Second Vice-President. Mr. Charles H. Fry, associate editor of the “Railroad Gazette,” who has written a valuable and comprehensive report of this betterment work, gives the following as its principal features and objects:—
“To restore and promote cordial relations, based on mutual respect and confidence, between employer and employee;
“To restore the worker to himself by freeing him from the small and debasing tyrannies of petty and arbitrary officials on the one side, and from individuality-destroying union domination on the other;
