The Elm Orlu Contract System

THIS paper describes the methods used to determine the rates of payment for contract work and the plan of contract supervision in the Elm Orlu mine. A discussion of the theory of wages and the eternal question-what is a just wage-are beyond the scope of this article. In the fall of 1920 the Elm Orlu was the largest mine in Butte using the day's pay system of payment for stoping operations. High labor and supply costs and a falling market for the product of the mine made economic mining difficult. The mining method had been changed from the square set stoping to timbered rilling to eliminate most of the shoveling. There was no opportunity to reduce the cost of supplies other than more rigid economy in their use. It was recognized, however, that the labor efficiency was low and that the reduction in costs depended on increasing the output per man. While in general, the low man efficiency was a resultant of the high wages paid and the shortage of men during the war and subsequent period of inflation, it was felt that the contract and bonus system used in the other mines was the main factor in that the most capable and energetic men had been attracted to those mines where more than average skill and dili-gence were recognized by more than average pay.