The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-12-28
PENsIoNING OLD EMPLOYEES.

A current item says that the next annual
report of the Baltimore & Ohio Railway
will show a larger number of persons on
the pension list than ever before. 1t ought
to. for 1t is the oldest established railroad
pension list in the country, and as the sys-
tenn extends the number of pensioners
should, also.
The practice of old-age pensions for en-
ployes borrowed from England has made
some progress in this country and will
probably extend as our commercial inter-
ests become more firmly established There
is element of justice in it that appeals
to large employers and besides encourag-
ing faithful service, it enables employers
TO weed out persons who have become par
italy incapaciteted by age and to fill their
places with young men-a practice which
seems especially popular with some corpor-
atoms that require physical activity and
endurance in their employees.
The Baltimore e. Ohio Company estab-
lished what it called a relief department
several years before it adopted the pension
system. Under the former rule. established
join the department. as a condition of being
employed. An employee getting $50 per
month must pay into a common fund $3.50
per month. for which he is entitled to 81 a
/ day for fifty-two weeks of sickness or of
| disablement from accident. to $1,000 in case
of death from accident, and to $500 in case
/ of death from sickness. Employees earning
/ higher wages pay in more and are entitled
10 more. in proportion. In its first twenty
years the Baltimore & Ohio department
/ paid Sc, Ole, 199 TO members and 81, 232 for
expenses. Under the pension system, estab-
lished in 1884. this company had 32S pension
ers in 1901 past sixty-five years of age. cost
ing annually S61,174. An employee at wages
not over SIS per month, who has been a
member of the relief department ten years,
gets pension of IS cents day on reach
ing sixty-hve. Employees at wages between
$50 and S75 per month get 70 cents a day
/ on reaching the pension age. This is not
much, but 1t is something and the small
monthly payment that secures it is hardly
felt
About three years ago the Pennsylvania
Company established a pension department
on a large scale. though it had carried a
relief fund for many years before that
AS the Pennsylvania Company has about
10000 employees tie experiment of granting
age pensions was an important one and il
was only adopted after thorough investiga-
ton of the subject and of the systems
practiced in different parts of the world
Under the system as adopted retirement is
voluntary at sixty-fve years and compul-
sorry at seventy. During the first year OF
the operation of the system 1.292 men were
retired on pensions aggregating S244 0l9
During 1902 the pension list aggregated
1928, 4O3. The amount of a pension is 1 pei
cent. Of average annual wages for tn,
last ten years of service. multiplied by
total years of service. \ man retired al
seventy. after serving the company fifty
years would thus get half pay for the re
mainder OF his life. Following the tive
companies above named pension depart
ments have been established within tn
last three years by five other rail " sys