While in the main there are many different plans upon which successful machinery establishments are conducted, there are some underlying principles that must be observed to avoid meeting with difficulties. The rate of wages paid is certainly a large element of shop economy, but there are so many other elements that should be considered before wages are reached, that we often find proprietors, who pay their workmen at a comparatively high rate, doing a more prosperous business than their competitors who have reduced wages to the lowest possible scale. Many machine shop owners, not having mastered the various economies of management, as soon as profits begin to shorten, pounce directly upon the wages paid to their workmen, and pare them down so as to make up for the deficiency elsewhere. They don't seem to realize that there are important elements of economical management other than closely watching the wages of labor and the cost of material. It is sometimes necessary to reduce the rate of wages, but what a different effect it has upon the men in different shops! In one shop you scarcely hear a murmur--no angry meetings--no threats of a strike--no growling at the head of the establishment. The intelligent workmen understand the reasons for the reduction without a wordy explanation, and accept it, feeling confident that it has not been unjustly made. In another shop it causes ill feeling, angry protests, and perhaps a disastrous strike. The owner often charges his trouble to the character of his workmen. Let him review his course, and see if the great cause is not in his own management. Mechanics are keen and observing. If the business is poorly managed they are not slow to mark it, and when a cut is made in wages can generally cipher out the cause. It is good economy to keep a systematic record of the cost of everything. This record will be found very valuable in making estimates, much more so than guess work. It is not good economy to keep using worn-out tools when any work of consequence is to be performed. The extra cost of labor and spoiled pieces would soon pay for new tools. It is not good economy to keep discharging capable workmen for petty causes, and employing new hands to take their places. It is poor economy to use slow-cutting grindstones to accomplish work that fast cutting emery wheels are suited for. It is questionable economy to employ lathes, planers, and drills to perform work of any extent that a milling machine will do better in less time and at much less expense. It is decidedly bad economy to employ engines and boilers that waste fuel and are troublesome to keep in good running condition. It is mistaken economy to buy inferior tools, machines, and shop supplies, because they are low priced.