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 practical,
 evolutionary development since its inauguration in
1911. Under its provisions employees were at first guaranteed
 a certain agreed-upon participation in gross operating
 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 further
 change was made by which both employees and management
 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 noninion
 basis. There was no discrimination against members
of labor unions, but there were no agreements with labor
organizations, excepting one of several vears’ duration