The original premium system is known as the _Halsey_ plan. There are, however, several well─known modifications of the plan, all based on efficiency, but each having certain distinguishing characteristics. No more clear presentation of the essential features of the best known premium systems has been made, than is found in a review by Mr. Carl Bender, published in the Engineering Magazine, from which the following is quoted: HALSEY PREMIUM PLAN To mitigate to some extent the evil workings of piece rates, Mr. F. Halsey invented the premium plan shown in Fig. 1. The slant of the wage line may be at any angle from horizontal, straight piece rate, to coalescence with day rate line. This system possesses at least four valuable points: 1. It pays day rates if a longer time is taken than standard. 2. It is a very flexible system and can be adapted to different conditions. 3. It lessens but does not obviate the necessity of changing rates. 4. It lessens but does not wholly remove the inclination to limit output. It is in one respect a step backward, since it substitutes uncertainty for definiteness as to wage costs. Nevertheless, the Halsey system was an admirable step in advance. Usually the worker is given either one─half or one─third the time he saves. Psychologically it is much better than piece rate, since most workers are more inclined to lessen their time than to increase the number of pieces turned out. A man will deliberately decide that he ought not to turn out more than five pieces a day, but he will not feel the same desire to avoid breaking his own record of two hours per piece. Under the Halsey system, no limit is placed on a man's earning power per hour, and also a minimum piece rate of one─half or one─third the initial rate per piece is allowed, so that if a man worked on his own time, he would at least receive per piece one─half or one─third standard pay. [Illustration: Fig. 1. Diagram of the Halsey Premium Wage System] TAYLOR SYSTEM