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Mr. Halsey, in objecting to the use of the word "drifting" as describing his system, has referred to the use of his system in England in connection with a "rate-fixing" or planning department, and quotes as follows from his paper to show that he contemplated control of the speed of the work by the management: "On contract work undertaken for the first time the method is the same except that the premium is based on the estimated time for the execution of the work."
After practicing this method of time study himself for about a year, as well as circumstances would permit, it became evident that the system was a success. The writer then established the time-study and rate-fixing department, which has given out piece work prices in the place ever since.
Both the seventh and eighth duties call for a certain amount of clerical work and ability, and this class of work is almost always repugnant to the man suited to active executive work, and difficult for him to do; and the rate-fixing alone requires the whole time and careful study of a man especially suited to its minute detail. Ninth.
The writer quotes as follows from his paper on "A Piece Rate System," written in 1895: "Practically the greatest need felt in an establishment wishing to start a rate-fixing department is the lack of data as to the proper rate of speed at which work should be done.
Of especial importance was the Mann-Elkins Act of June 18, 1910, which further extended the powers of the Interstate Commerce Commission. Experience had brought out serious defects in the rate-fixing procedure set up by the Hepburn Act.
The apparent advantage of fixing a fair average rate was, that it made rate-fixing exceedingly simple, and saved clerk work in the time, cost and record keeping. A careful time study, however, convinced the writer that for the reasons given above most of the men failed to do their best.
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