The piece work system which is now adopted at the Oi Works is explained. Its merits and demerits are disoussed. The piece-man rate system and several premium systems are examined with a view of deciding whether or not they are well adopted at the works. Finally the proposed wage system is explained, the essential points of which are as follows : (a) the work is given to the workers in form of the piece-man rate, (b) the day wages are paid for the actual working hours, (c) for the hours saved by the workers the mean day wages in each shop are paid, (d) in cases of joint works, wages on the time saved, calculatey by the above method, are divided among the workers in proportion to the actual day wage earned by each worker plus twice the actual working days served.