it to your workman in this way. You say to him, “During the past year I have watched your work closely, and made hundreds of ‘studies’ in regard to the ‘part’ you turn out with that machine. I find that you have averaged about six to the hour. Now I am convinced that you can just as well turn out seven. Your pay is now $2.50 per day; if in the future you can make seven instead of six of these ‘parts’ in an hour, I will pay you $3.00 per day. In fact, your pay will increase in exact proportion to your cleverness and industry. Furthermore, if by any manner or means you can invent a way, such, for instance, as an improvement in the mechanism or in the operation of your machine whereby you are enabled to turn out a dozen of these ‘parts’ in an hour, I will see to it that your pay is increased accordingly, without any limit whatever.”
Continuing our general illustration, we will now take it for granted that you are able to start this bonus system in your factory or shop, in which, under ordinary circumstances, you give employment to one hundred union men. At the end of a certain period you find, on account of the extra effort put forth by the most ambitious and cleverest men, that the number of these “parts” which you require in your business, or on your railroad, can easily be turned out by seventy-five men. So without delay you reduce the working force in your shop ac-
