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 neces- 
sary 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 determina- 
tion 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, stu- 
dents, 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