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183 "There has never been a strike by men working under this system, although it has been applied at the Midvale Steel Works for the past ten years; and the steel business has proved during this period the most fruitful field for labor organizations and strikes. And this notwithstanding the fact that the Midvale Company has never prevented its men from joining any labor organization. All of the best men in the company saw clearly that the success of a labor organization meant the lowering of their wages in order that the inferior men might earn more, and, of course, could not be persuaded to join.

"I attribute a great part of this success in avoiding strikes to the high wages which the best men were able to earn with the differential rates, and to the pleasant feeling fostered by this system; but this is by no means the whole cause. It has for years been the policy of that company to stimulate the personal ambition of every man in their employ by promoting them either in wages or position whenever they deserved it and the opportunity came.

"A careful record has been kept of each man's good points as well as his shortcomings, and one of the principal duties of each foreman was to make this careful study of his men so that substantial justice could be done to each. When men throughout an establishment are paid varying rates of daywork wages according to their individual worth, some being above and some below the average, it cannot be for the interest of those receiving high pay to join a union with the cheap men.