The following illustrations are only partially descriptive of the Santa Fé method, but they are sufficiently accurate to cover the principles involved, the benefits that are derived from them, and some of the objections which have been advanced by the union men on the railroads, who are opposed to the bonus system in any form. You take a certain piece of machinery, say a part of a locomotive. You make a “study” of this part. After making one hundred tests, under all sorts of conditions, you make a schedule in your machine-shop for this particular operation or piece of work. You then fix upon a standard time for doing this work. Standard time is simply the time which it ought reasonably to take to do the work without killing effort, but by eliminating every unnecessary waste. The elimination of waste is the fair and square proposition you present to your workman. You say to him, “Make a standard time on this piece of machinery, and I will pay you twenty per cent above your hourly rate, that is, above your regular pay. If you take more than standard time, your bonus will diminish until at fifty per cent above standard time it will simply merge into your day rate. On the other hand, if less than standard time is taken, your bonus will increase above twenty per cent. But, under any conditions or circumstances, you will always receive your full day’s wage.” The situation becomes still plainer, if you explain it to your workman in this way. You say to him, “During the past year I have watched your work closely, and made hundreds of ‘studies’ in regard to the ‘part’ you turn out with that machine. I find that you have averaged about six to the hour. Now I am convinced that you can just as well turn out seven. Your pay is now $2.50 per day; if in the future you can make seven instead of six of these ‘parts’ in an hour, I will pay you $3.00 per day. In fact, your pay will increase in exact proportion to your cleverness and industry. Furthermore, if by any manner or means you can invent a way, such, for instance, as an improvement in the mechanism or in the operation of your machine whereby you are enabled to turn out a dozen of these ‘parts’ in an hour, I will see to it that your pay is increased accordingly, without any limit whatever.”