INTERNAL RELATIONS. 73 



determine the cost of each operation and hence that of the prod- 

 uct. Nothing can be more illusory then such a proceeding ; it 

 makes no allowance for the time consumed in preparing work 

 and tools ; for the inevitable loss of time in changing from one 

 job to another, and for the waste. It is like attempting to de- 

 termine from half a dozen foot tracks the general direction in 

 which he who made them was traveling. 



In practice nothing can be surely known of the cost of any 

 job until it is completed ; and yet foremen and others are ex- 

 pected to keep within their estimates ! 



So with piece work ; the price for it can only be set blindly, 

 or by competitive bidding, unless a broadly comprehensive view 

 of the subject be first obtained. Even if awarded to the lowest 

 bidder, it is probably better in the long run to know for about 

 what price he can afford to do it properly, than to risk wasting 

 the temporary profit gained by excessive reduction, in disputes 

 with the contractor over the quality of his work, with the added 

 risk of delay in the production of other dependent parts. 



2. Cost of material. 



Leaving out such cases as one in my own experience, in which 

 no material was charged to a job actually containing several 

 hundred pounds of iron, the foreman estimates the material con- 

 sumed, and either guesses at its value, or, if of an earnest turn 

 of mind, goes to the office and gets one of the clerks to hunt it 

 up among the records. 



Here his labor generally stops ; his natural desire to make the 

 best possible showing may lead him to confine himself to the 

 bare total cost of labor and material, omitting all charges for 

 miscellaneous expenses, such as superintendence ; clerk hire ; 

 power ; use and wear of tools, machinery and buildings ; oil ; 

 waste ; heating and lighting ; laborers, watchmen, teamsters and 

 the like. These expenses, however, are generally covered by 

 adding a certain percentage, as follows : 



a. An arbitrary charge, depending on the circumstances of 

 each case. 



b. A percentage on the gross cost of the job 



