The midland journal. (Rising Sun, Md.) 1885-1947, 1892-03-18

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1t may be said that he should then
be discharged and younger man put
in his place. but this policy is neither
humane nor economic. 1t is inhaman
because it throws the laborer upon the
world at time when he has become
incapable Of earning living, making
of him either a pauper or beegar.
This is socially degrading; it tends to
stamp out the manhood aud destroy
the individuality, dignity and freedom
of the citizen. On the other hand, to
avoid this calamity laborers are tempt
ed and even taught to restrict their
standard Of living to the narrowest
limits that something may be saved for
that ''rainy day." To this end women
desert their homes for the shop, chill
dren are hurried into the factory when
they ought to be in school. Thus 10
the name of false economy the highest
interests Of home life are neglected,
ignorance is perpetuated and ths social
advance Of the laborers is prevented.
It is uneconomical because all this
Injuries the growth Of intelligence and
integrity, so indispensable to efficient
workmen.
To order therefore to obtain the best
result from laborers they must not only
live under good conditions while work
ing, but they must be placed beyond
the fear Of want in their old age. To
secure this labor depreciation Or in
surance fund should be made an estab-
lished part Of the cost of production
just the same as depreciation for ma
chinery is provided for now.
From this two important advantages
are obtained: ~ Laborers can be re
tired without becoming paupers when
they cease to be profitable factors in
in production or when they reach what
economists call the stage OF diminish
ing returns ~ Their future being
assured, laborers> would feel safe 10
keeping their wives at home, sending
their children to school, and otherwise
living up to the full extent of their
income. Thus instead of constantly
trying to restrict their standard of liv-
ing to provide for old age. they would
have every inducement for extending
it, which would tend to increase their
intelligence, social character and indi-
viduality, and develop not only more
eficiant laborers but higher manhood
and superior citizenship among our
people.
therefore regard labor insurance as
a necessary feature Of any continuously
profitable system Of production. Not
as part of the Economic Distribution
of Earnings but as a means of per-
manently securing surplus earnings to
distribute either to laborers or capital
lists. Accordingly in addition to my
method of Economic Distribution of
Earnings, and as an impor tant aid to it,
have adapted system of Labor
Insurance.
I commenced these experiments in
1866. The plan for insurance is based
upon the accepted actuary tables oflife
insurance companies, and has two fea.
lures. One is regular life insurance
policy, to provide for the family in case
of death of the worker; the other is
Pension Fund to provide for the co.,
tingencies of accident or other forms Of
incapaeity while living. The life in
surance provides every employee with
a 81 900 policy for every five years
consecutive services until the amount
reaches $4,000.
The pension fund entities every EN-.
ployee to pension when disabled for
work from accident or old age, 10
progressive ratio, beginning with fifty
per cent Of his wages. In case of &C.
cident the pension begins at once. and
in case Of old age after ten years ser.
vice, rising at the rate Of ten per cent
every three years until his full wages
are reached.
The system of Economic Distribu-
ton of Earnings as ! said. is largely a
matter of bookkeeping. AS in any
we'll ordered establishment we have a
known unit of cost of production, which
has been ascertained by continued ex.
perienee and which is acted upon as
the basis of doing business. And with
scientific system of book keeping this
established cost per uait (under existing
methods) is Just as definitely known in
every department as is for the whole
establishment.
If any important departure from this
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