CHAPTER 1

INTRODUCTION

This book is not a compilation of data relative to wage
changes during the past quarter of a century. So far as
it has been possible, the attempt has been carefully made
to eliminate all statistical compilations or concrete data.
Such material has been used only where absolutely necessary
 to demonstrate a point or indicate a tendency, and
even then in the most restricted way. The primary object
has not been to present detailed information relative to the
compensation of industrial workers. The real purpose
has been to analyze and bring to light the extraordinary
changes which have occurred during recent years in
thought and action relative to theories of wage determination
 and the principles regulating the participation of
employees in the output of industry. This has rendered
necessary also a review of the revolutionary changes in the
fundamental attitude of industrial leaders, financiers, students,
 publicists, and members of adjustment agencies,
toward wage principles and standards, and also the citation
of the sanctions for new standards and theories of wages
which have developed through judicial or official action.

TrE NEw INDUSTRIAL REVOLUTION

Prior to the World War, gradual, evolutionary changes
had been taking place in wage-theories. After our entrance
into the conflict, however, by mutual agreement between
capital and labor, the general procedure was adopted of
maintaining the pre-war purchasing power of wages by
periodic changes in rates of pay according to fluctuations