Sec. 1. In any attempt to formulate principles for use in the settlement of wage disputes, past experience furnishes much guidance. What this experience consists of. Sec. 2. Such principles as have been used in the settlement of wage disputes have usually resulted from compromise; reason and economic analysis have usually been secondary factors. However, industrial peace cannot be secured by a recurrent use of expedients. Sec. 3. The attitude most favorable to industrial peace. Chapter II--Some Pertinent Aspects of the Present Industrial Situation 8 Sec. 1. The chief aims of any policy of wage settlement for industrial peace defined--the chief tests to be passed. A knowledge of present industrial facts essential to the formulation of sound policy. Sec. 2. The present economic position of the wage earners. Sec. 3. Their relations to the other groups in industry. The acceptance of the practice of collective bargaining essential to any policy of wage settlement in the United States to-day. Trade unionism must prove itself fit for this responsibility, however. Sec. 4. The economic position of capital in the present industrial order. Its service to production. The problems to which the accumulation of capital has given rise. Sec. 5. The economic position of the directors of industry. Industrial control an attribute of ownership. Two important suppositions used in this book, concerning: a. The forms of industrial income; b. The possible spread of public ownership, and its consequences for a policy of wage settlement. Chapter III--The Principles of Wages 35 Sec. 1. A knowledge of the forces governing existing wage levels essential in any attempt to work out a policy of wage settlement for industrial peace. Sec. 2. Wage incomes determined by great number of forces. The three most important and constant among these stated. Sec. 3. These three to be taken up in order. The volume of the flow of wealth in the county of the worker the first to be considered. Its relation to wages indirect, as all product is joint result. Sec. 4. The scientific management theories of wages based on a misconception of the relation between the productive contribution of labor and wages. These theories merely an elaboration of one method of wage payment. They have perceived one important truth, however. Sec. 5. The "group-demand" theory of wages as held by some trade unions, based on a similar misconception. Valid, sometimes, from group point of view; unsound from point of view of labor in general. Sec. 6. The second important force determining wages is the relative plenty or scarcity of the different groups or agents of production. How this governs the share of the product going to wage earners. Sec. 7. Many important modifying forces to the influence upon wages of relative plenty or scarcity. The most important considered.