THEORY OF PRODUCTIVE EFFICIENCY 187 
Railways. Great progress has already been made under 
this arrangement, but there has not as yet been sufficient 
time or opportunity to work out a permanent method for 
the participation of employees in actual revenue gains, the 
chief benefits thus far being regularization in employment 
and improvements in working conditions. 
MITTEN MANAGEMENT AND ITS AGREEMENT WITH 
OrcaNIzED LABOR 
The most comprehensive and successful application of 
the theory of productive efficiency is to be found in the 
system of cooperation between employees and management 
on the Philadelphia Rapid Transit Company under what 
is known as the Mitten Plan. This plan has had a prac- 
tical, evolutionary development since its inauguration in 
1911. Under its provisions employees were at first guar- 
anteed a certain agreed-upon participation in gross operat- 
ing revenues. Later this method of sharing productive 
gains was changed to an arrangement by which employees 
received each year 10 per cent. of the revenue gains arising 
from increased economies and efficiencies. In 1926, a fur- 
ther change was made by which both employees and man- 
agement receive an equal share, which for the employees 
is in addition to their usual compensation, in the gross 
revenues of the Company. Employees have for a number 
of years used their participation in increased productive 
gains in purchasing stock of the Company, and at the 
present time the controlling interest is held and voted by 
smployees collectively through their own trustees. 
For many years, Mitten Management operated its street 
railway properties in Philadelphia and Buffalo on a non- 
inion basis. There was no discrimination against members 
of labor unions, but there were no agreements with labor 
organizations, excepting one of several vears’ duration