The Washington times., 1904-03-06
With But One Exception
All of the Presidents
Advisers Favor
the Idea.
Secretary Moody Would
Appoint Only Young
People for a Few
Years Service.

bill to present to Congress.
THE association said Mr. Starr. lin
its study of the pension problem. has
not confined itself to Government
methods Last November 5000 letters
were sent out to leading corporatior.s.
railroads, banks and business houses.
requesting information on their own
pension systems. The last question of
thesc letters read: 'Divesting il of its
humanitarian principle. do you regard
the pension system as a good business
methodT Seventy replies were received
from the larger corporations Of the
country, which use the system, and the
answers of all OF them to this question,
as you can see for yourself, are in the
affirmative. The officers OF 100 banks
wrote their approval of the pension sys-
tenn from q business standpoint Many
other replies We're received. showing
that. like ourselves. the writer's are
reaching after a similar system"
Mr.. Starr also produced a number of
the annual reports Of corporations en-
ploying the retirement system, such as
the Pennsylvania Railroad, the Della
ware. LacSawanna and Western. and
others, and an examination of these
showed a high state of prosperity and
smooth working Of the system OF pen
sion retirement. Probably the most in
teresting report because it represents
the Oldest corporation system of pension
retirement. is that of the Grand Trunk
Railroad of Canada, which instituted
the system thirty years ago. The Grand
Trunk sent a special report. showing
that the scheme embraced all officers.
passenger or freight agents, telegraph
operators, and the clerical STAFF gen.
orally. who, on the date of its becoming
effective were under thirty-seven years
OF age. and in receipt Of more than
800 per annum. Membership was op-
tional for officers and employees then in
the service. but compulsory upon ali who
entered after the LIST of October. 1875.
The revenue OF the retirement fund is
derived from a contribution from the
members of 21z per cent Of their pay. de-
Quoted monthly on the pay rolls. the
amount so contributed being augmented
by a contribution of an equal amount
monthly by the Grand Trunk Railway
Company.
The funds are invested in the names OF
three trustees appointed by the directors
OF the company. A report is made
every five years by competent actuarics
as to the position and prospects Of the
fund. ard after the experience OF tvveu-
ty-nine years II has been found TO be
IN an entirely healthy and solvent condi-
ton
Members are eligible for a pension at
The age of hfty-five years. such pension
being computed on the basis Of one
sixtieth Of the ret~ing pay for each year
of membership, the allowance, however.
in no case to exceed two-thirds of the
average annual pay curing the period
OF membership.
In the event Of member being inca
pacitated for work. owing TO mental or
bodily infirmity. after having contrib
uted for ten years or over, he is en-
titled to a pension on the same basis.
In the event OF an employe leaving the
service after contributing for FIVE years.
he receives one-half. and after ten years
the whole OF his contributions. Should
he die at any time. his widow receives
the whole amount paid IN by him. or
IL he leaves no widow. then the same is
paid TO his legal representatives.
Speaking Of some of the features Of
the plan. the Grand Trunk officials
write:
OBJECTIONS have occasionally been
made as 20 the compulsory character Of
the system. but such are the result OF
q lack OF consideration Of the subject
The scheme Is the outgrowth Of a desire
TO apply for their individual welfare the
opportunity AFFORDED by the employment
OF a large body OF men. 1t is an adspta-
ton Of the sound principle. the greatest
good for the greatest number The op-
portunity would be thrown away were
the system made voluntary one. be-
cause such a. course would neutralize
any benefit obtaInable by reason Of the
collective feature
THE practical results consequent upon
the operation Of the fund have been ex-
ceIlent In many instances where en-
ployes dispensed with would otherwise
have been reduced to penury they have
been enabled 10 pass the remainder OF
their lives in comparative comfort"
such expressions as these make us
feel that we are right IN our contention
that the establishment Of a pension re-
tirement system on sound business ba-
sis will be for the good both OF the Gov
ernment and the employe." said Mr..
Starr.
Il might go into the tentative "details
OF our plan. but II would be Of little
value. as we cannot take any position or
lay any scheme intelligenUy until we
are POSSESSED OF the data which the
Presidents order will produce These
will be submitted to actuaries. and the
percentage which our bill will recon-
mend 10 be charged against the salaries
-SfII be one which will assure the sue