286 INDUSTRIAL REVOLUTION AND WAGES 
and traditional differentials according to hazard, skill, re- 
sponsibility, and productive efficiency. 
When the practical procedure had thus been worked out 
for thus establishing rates of pay and relating them to each 
other, a plan should then be adopted by which these basic 
wage-standards would be permanently maintained in terms 
of actual purchasing power. This would require the crea- 
tion of a statistical division to compile changes in prices 
or costs of living at regular intervals, according to 
the usual budgetary standards of weights, it being under- 
stood that at reasonable intervals wages would be auto- 
matically adjusted according to fluctuations in the costs 
of living index. 
After the general wage-scale had been worked out in this 
way and provision made for the maintenance of its pur- 
chasing power unimpaired, whether cost of living advanced 
or receded, there should finally be formulated the princi- 
ples and methods upon the basis of which wage-earners 
should participate in the productive gains of industry. 
There are many plans by which practical experience has 
already demonstrated this may be done. Those which have 
been found most satisfactory are: (1), the guaranty to 
wage-earners as a whole in an industry of a certain ratio 
of the gross revenues of the industry and its distribution 
to individuals according to relative earning power; or, 
(2), the guaranty to wage-earners of a certain proportion 
of net revenues or revenue gains, after capital require- 
ments had been fully met; or, (3), the guaranty to labor of 
a certain percentage of the gains in economies and effi- 
ciencies which had been produced within given periods, 
usually one year, by cooperation between labor and man- 
agement. 
Either the second or third method enumerated above 
would probably be the most satisfactory. The first method