The evening world., 1902-11-13
Army of $4,000 Men Will Be Given a VoIun-
tary Advance of $4,25O, OOO-This Is the
Second Surprise of the Kind for the En-
pIoyees This Year.
Decision Reached at a Meeting Of the Di-
rectors in Philadelphia Yesterday but Kept
Secret Till Announced by President A. j.
Cassatt, Who Intended It as a Surprise.
Especial to The Evening WORLDLY

Especial to The Evening word)
PHILADELPHIA, Nov 1s-From point to point over the telegraph
lines of the Pennsylvania Railroad to-day vas flashed the joyful news that
$4,000 employees would receive a increase of 10 per cent. in their salary
dating from the first of the present month. The word wa sent out from
Cassatts office. and in a remarkable short space of time every d-
vision superintendent had been notified. This increase affects the em-
ployees est of Phtsburg and Erie only.
AS soon as the supennendents received the new it a transferred
to heads Of departments. who quickly posted notices acQuaintlng their sub
ordnates of the fact. and general rejoicing followed.
DECISION REACHED YESTERDAY.
The determination to increase salaries all around vas arrived at during
the meeting of the Board of Directors yesterday. 1t was determined. how
ever, that omchl word should first be sent to the employees this morning
before the action should be made public. 1t therefore followed that the first
linking Of the roads generosity cam from the mel themselves The oncial
notification states that all employees who receive a salary of $500 per
month or less will be the recipient of 10 per centsincrease to date from
Nov. l. -,sl. .r
N is estimated that the Pennsylvania Railroad has in its employ east
OF PittshurE ard Erie at the present time $4,000 men, and at least 81 per
cent. Ct these ara affected by the increase. Under normal circumstances
only $4,000 would be employed, but the tremendous increase in foreign
ramc has nseessitated the employment of at least $4,000 more.
CAME AS A.
The cost of this increase in wages to the company will be tremendous.
Estimating that the average rate of wages paid per month is $50 per man.
and this is a mild eslmate-the additional payroll eharss pei month would
be Sa54oCO. or about SL26OOOO per year
In the various offices o. the Pennsylvania Railroad at Broad street sta
ton to-day there val a general air of satisfaction. Not an inklng of what
the directors had intended to do had leaked out and even after the action
was taken yesterday not a word was said until this morning.
SECOND ADVANCE MADE THIS YEAR.
The increase of salaries announced to-day by the Pennsylvania system.
while it does moi affect all the $4,000 employees, is the second announced
within a year. Last January a raise in wages amounting from 4 to IL per
cent. a granted to every employee of the company. from the humblsst
|nagman to the most resplendent trainman or the portnest official.
The wage increase made a year ago cost the company about $100OO00
annually. Evidently the policy paid. for with the tremendous increase in
the number of employees that is tt result from the construction of the new
North River tunnel and the establishment Of the New York and LonE
Island terminals the payroll will be increased a sum beyond the total wage
expense of many smaller lines.
In addition to the policy of increasing wages the Pennsylvania system
inaugurated some time age a system of pensions for superannuated o. dis
nbled employees that is said to be the most liberal in thecountry. Nearly
every railroad Of prominence has a Relief Fund, the bulk of which is con-
nv H. emnloyee although the mpan ana II without
compensation and donate sufficient amounts to keep the treasury funds up
to a required figure. &
BULK OF T. BORNEBY
The Pennsylvania Fund. while resembling the plan of other railroads
in Sol respects. is more radical in that the bulk of the expense falls upon
the company, and that in addition to supplying sick and death benefits 1t
takes care of employees compelled to retire because Of long service or dis
ablement
Ten years y labor we're spent before the plan ws perfected; There
were many difficulties to be overcome. Finally it was decided that the
scheme decided upon could not be improved. and although there as some
protest from aged, but still vigorous, employees it was put into effect
Employees If the Pennsylvania 1T now compelled to retire when they
the u of seventy years. Between the ages of sixty-hve and sixty-nine
years they may be retired upon proof Of physical disability. The pension
pn incorporates the payment Of a n amount equal to 1 per cent OF the
annual wages for each year of service. For instance a man whose average
wages while in the employ o, the company we're $500 a year and who had
worked for thirty years, would receive 30 per cent of his salary or Slo
annually after retirement and until death. There are now about 1000 re-
EMPLOYEES o N the pension rolls, to whom are paid more than 100000
a year.
No man Is taken o n a an employee of the Pennsylvania who Is over
ears of age, unless exceptional circumstances should prevail OF
unhss he had been employed at some previous time and had terminated his
connection With the company amiably. A Board Of omcers consisting q
the Vice Presidents. the General Manager and Assistant comPtTOlEAAts
road manages the pension fund N