Omaha daily bee., 1902-11-29
WILL PENSION ITS OLD MEN
Uni.u Pac'6 &c Will Adopt System for En-
ployes First Of Year.
PATTERNED AFTER ILLINOIS CENTRAL
purpose 20 Promote Harmony Be
tween Employees and Employer
and Incidentally 90 Ala I'm
Solving Labor Question.

A pension system for the employees Of the
company goes into effect on the Union Pa
cinc January 1. 1903. The system has been
perfected and the rules and regulations,
which are compiled in book form, have re-
oeived the signature OF President Horace
@. Burt. with the possible exception OF
some printing nothing remains to be done
but place the system in effect, yet II was
said at the presidents ONCE this morning
that no sormsl statement would be made
regarding the details OF the proposition
just now.
Pensloning employees may still be consid-
cred an innovation among railroads. II lie
a departure which but few roads have fol-
lowed. yet even in It's experimental stage
has attained a degree OF popularity which
insures its more general adoption. The
Pennsylvania and the Illinois Central both
have this system in effect. the Pennsylvania
being the FIRST to adopt It.
The Illinois. Central's system, by those
who have studied IL, has been generally
commended as a most liberal one. II Is
regarded much more liberal In It's pro-
visions to its employees than that OF the
Pennsylvania. It is understood the Union
Pacihc's system is patterned after that Of
the Illinois Central.
To be eligible under the Illinois Central's
system Of pensions an employe must have
first been In the service OF the company ten
years or longer. Then II he has reached
the age OF 10 he must be retired" There
is no option about this. But he may be re-
tired at So. either by the voluntary action
Of the company or upon his own application,
which must be favorably acted on by the
board of pensions.
Incapacity from Service.
Ineapacity from active service is the de-
termining factor in such cases. The words
"Iu service" refer not only to the main
lines OF the company, but to any proprietary
line, and 30 wide is the latitude toward the
employees that II one be employed on a line
which later may fall into the possession OF
the Illinois Central he will be Just as eligi-
BILE to a pension as though he had spent
the entire ten years OF his service on the
main line. For instance, II a man, say 6S
years of age, has been at work eight years
on some road which the Union Pacific may
buy. he would get his pension when he be-
came 70 years of age just the same as
though ne had spent all his ten years on the
Union Pacific. This, at least, is the rule on
the Illinois Central and, assuming that the
report is correct that the Union Pacific has
practically followed out the same system,
1t will be the rule there.
The rate Of pension doubtless will be 1
per cent Of the average monthly pay which
the applicant has received for the ten years
last prior to his retirement, multiplied
by the number OF years he has been In
the company's employ. This is con-
sidered a very liberal allowance. What
amount of pension fund the Union Pacific
has or will set aside is not known at this
time. The Illinois Central road originally
set aside $3.50, 900 when its system went into
effect July /. 1901. and provided for the
appropriation OF 800, 900 each year there
after or as much more as the demands OF
the Institution warranted. One inexorable
rule is that in no case shall a pension be
assigned. The fundamental principle of the
pensioning system is to cultivate closer
mutual relations between employer and en-
ploye and II is the purpose that this bond
OF union shall survive the retirement Of the
employee from active service. These ends
would be utterly defeated, It is held, were
the assignment of pensions tolerated. The
Illinois Central agrees that its pensioned
employees can engage in other business II
they desire, but cannot re-engage in the
service OF the company and this rule is
expected to obtain with the Union Pacific.
Board of Pensions.
The management and control Of the PEN
sion department will be vested in a board
Of pensions whose headquarters will be In
Omaha and whose transactions will be sub
joct to the approval Of the president.
In the case Of the Union Pacific, as with
all other roads. this system Of pensioning
aged and incapacitated employees will, II is
urged, work wonders In the way of tenn
p~orizing the labor situation. For in
stance, before the strike in the Union Pa
cihc shops broke out last June there were
many old men at work there whose days
Of effective usefulness had passed and the
disposition Of whom became a problem
to the company. II these men were arbl-
trarily discharged 1t would forthwith in
volve the company In a fight with the
unions to which they belonged. and YET
certain officials did actually complain thai
these men were not able to earn a fair
days pay and were a dead load on the
company. SOM OF them had been in the
service of the Union Pacific for thirty
years. II was held. on the other hand
that to turn them out now after they had
spent their strength and energy for the
company would be wrong. and there the
matter hung. The charge has been mad
more than once that this strike, which
was In the nature OF a lockout. was pre-,
cipitated as a means OF thinning out the
shop ranks. At any rate It is believed thii
pension system will furnish adequate solu,
tion for this problem should II arise again
The Union Pacific has finally decided tina