WORTH OF PREVIOUS METHODS IN THE HANDLING.--It will be noted in the discussion of the three types of compensation so far discussed, that there is nothing in them that renders them unscientific. Any one of the three may be used, and doubtless all are used, on works which are attempting to operate under Scientific Management. Whether they really are scientific methods of compensation or not, is determined by the way that they are handled. Certainly, however, all that any of these three can expect to do is to convince the man that he is being treated justly; that is to say, if he knows what sort of a contract he is entering into, the contract is perfectly fair, provided that the management keeps its part of the contract, pays the agreed-upon wage. In proceeding, instead of following the order of Schloss we will follow the order, at least for a time, of Dr. Taylor In "A Piece Rate System"; this for two reasons: First, for the reason that the "Piece Rate System" is later than Schloss' book, Schloss being 1891, and the "Piece Rate" being 1895; in the second place that we are following the Scientific Management side in distinction to the general economic side, laid down by Schloss. There is, however, nothing in our plan of discussion here to prevent one's following fairly closely in the Schloss also. THE GAIN-SHARING PLAN.--We take up, then, the Gain-sharing Plan which was invented by Mr. Henry R. Towne and used by him with success in the Yale & Towne works. This is described in a paper read before the American Society of Mechanical Engineers, in professional paper No. 341, in 1888 and also in the Premium Plan, Mr. Halsey's modification of it, described by him in a paper entitled the "Premium Plan of Paying for Labor," American Society of Mechanical Engineers, 1891, Paper 449. In this, in describing the Profit-sharing Plan, Mr. Halsey says--"Under it, in addition to regular wages, the employes were offered a certain percentage of the final profits of the business. It thus divides the savings due to increased production between employer and employe."