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Updated: June 8, 2025
Stockett: "The principle of standardization is designed to abolish within a given area the multiplicity of rates paid for similar service by the application of one standard rate for each occupation, minor differences in the nature of the work due to varying physical and other conditions being disregarded."
For an eloquent and incisive discussion of this whole subject, based, of course, on the facts of his own time, see the chapter in J. S. Mill, "Principles of Political Economy," entitled "Of the differences of wages in different employments." J. N. Stockett, "Arbitral Determination of Railway Wages," pages 165-6.
Stockett: "... The railways oppose district standardization on the ground that rates cannot be disassociated from conditions and since conditions vary widely on different roads in such extensive territories as the railway districts they maintain that rates cannot be made uniformly applicable on all the roads.
See also the controversy between the railways and railwaymen arising from the difference described by J. N. Stockett, Jr., "Arbitral Determination of Railway Wages," pages 107-8: "In determining the increase in railway wages for the purpose of ascertaining whether wages have kept pace with increasing prices the question arises as to whether wages mean earnings or rates.
Compare J. N. Stockett, Jr., "Arbitral Determination of Railway Wages," pages 46-47. Section 1. The reasons for seeking separate principles for the settlement of the wages of the lowest paid groups. Section 2. Wage statistics of these groups a matter of familiar knowledge. Section 3. The definition of the living wage idea. An inescapable element of indefiniteness contained in it. Section 4.
Stockett has written, "Indeed there is every likelihood that the existence of a powerfully organized and highly paid group of labor in any industry such as the engineers and conductors in railway transportation far from being detrimental, may in the long run, be beneficial to the interests of the unorganized and low paid workmen.
In its enumeration and discussion of the difficulties to be met in the application of principles, and of the attitude of most agencies of wage settlement it is particularly interesting. American Economic Review, June, 1916. J. N. Stockett, "Arbitral Determination of Railway Wages," page 75. Resolution No. 18 offered to 1920 Convention, Cigar Makers Official Journal, May 15, 1920.
The same problem has arisen, of course, many times in the course of trade union negotiations for example, in the coal mines and railroads of the United States. Section 12 , Trades Board Act, 1909, Restated in the Corn Production Act, 1917. J. N. Stockett, Jr., "Arbitral Determination of Railway Wages," page 23. J. N. Stockett, Jr., "The Arbitral Determination of Railway Wages," page 21.
The practical consequences of any wage policy which gave full recognition to these minor differences must also be weighed. These have been vigorously stated, for the case of railway labor, by Mr. Stockett. "... The employees maintain that the varying physical and traffic conditions in the different roads should not constitute a basis for the payment of various rates.
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