The Washington herald., 1907-09-15
Chief Wales Explains the
Scheme for Clerks.
WILL BE COMPELLED TO SAVE
Congress 20 Be Asked 90 Pass Bill
LegaIizing Committees ReconsmeH-
dntion-Hope 20 Benefit Service as
Well as superRnnuated Employees,
Treasury 10 Pay Good Interest.

/ held out by a commercial career, y u
would get able and intelligent help, IS tho
belief Of G.. r. Wales. chief Of the aD-
pointment division Of the Civil Service
Commission and member OF the sub
committee OF the Keep Commission On
personnel. He made statement yester-
day In regard 10 lis investigation Of the
/ question OF the superannuatiOn OF gov
ernment employees
In al matters affecting the public
! service" said MT. Wales. the first con-
sderation must be the welfare Of tbs
government The interest Of the indi-
vidual employe must be entirely sec
oudary. The comIgittee considered only
the interests Of the government reaEz-
ing. OF course. the incidental benefit TO
the employe.
In at least one respect the govern
ment has been handicapped in compet-
ing with private institutions for the best
class of employees. Many persons object
TO entering the service because the Op-
portuHIties for advancement are limited
In private business the zeal OF the en-
| ploye is kept alive by the hope Of con-
tinued advanceUent and the possible op-
portunity OF sharing in the management
and profits Of the enterprise. In other
words, the classified service does not offer
a real career as an indUcement for re-
crUits 10 its seIEice.
Government Is Handicapped.
For positions requiring some training
or ability In addition 10 that which can
/ be obtained in the common schools, the
} Civil Service Commission is experiencing
great difficulty in securing a sufficient
1 number OF qualified persons 10 meet the
/ needs Of the government For example.
1 while there has always been demand
I for male sten0graphers and typewriters,
and much publicity has been given 10
/ this fact. The commission has never had
so much difficulty as IL is having al pres
I ent 10 supply the wants OF the various
/ departments In this line. The usual en-
1 trance salary Of 500 a year is probably
equal 20 that paid By private firms on
/ entrance, but the government needs men
/ Of some experience, and il cannot offer
4 the inducements for the future that are
/ offered by private establishments
! since the government IS a competitor
/ Of private establishments IN the matter
Of employees. any plan looking 10 the So
/ luton Of the question OF superannUatl0n
must take into consideration what those
| competitors are doing 10 solve the cues
+ ton. Il was found that III rapidly IL
/ cTeasing numbers railroads and large IN
dUSrial corporations axe adopting various
/ schemes for the retirement Of employees
+ OF long standing. Various plans have
( been adopted. In most cases the en-
piOyer sUstains the entire cost Of retire
meut. in others. ole-hal1 while IN some
/ cases all OF the fund is provided by de-
/ GuctioHs from the pay Of the employees.
/ The motive for the adoption Of such
/ schemes by private corporations cannot
/ be wholly a phllanthropiC one
! The benefits 10 the public service OF
/ retirement provisions are Wen Illustrated
I in the high character Of the Federal
/ judiciary. as we'll as the officers Of the
army and navy. There are undoubtedly
many well-equipped men, possessing the
highest qualifications, who would be at
/ tracted 10 the classified service Il there
were some assurance that they would be
taken care OF n cd age They would
enter the government service with the
/ feeling that the public business was 10 Do
/ their life work. and they would bring 10
/ it a high grade of ability and the stand
/ ard OF the service would be raised.
For Compulsory Savings.
Although the government might be
/ amply justified from q purely selfish ard
/ economic standpoint in providing the en-
/ tire fund for the retirement Of its super
ANIMATED employees. there is q strong
prejudice against the establishment Of q
| civil pension list in the United States.
/ such as is maintained by all the other
/ great powers Of the world. We therefore
gave consideration 70 the many different,
plans proposed whereby the employees
provide a part or all Of the retirement
/ fund by deductions from their pay, with
! the result thaJ It submitted plan In the
/ form OF q bill which. If adopted. VIII
mean ultimately that eacn empl0ve viii
/ be required 20 save enough money out Of
/ his salary 20 pay for his own retirement.
/ In reality. the plan amounts 70 little more
/ than compulsory savings. since each en-
ploye viii have a certain amount deduct
/ ed from his pay each month which VIII
I be deposited iu the United States Treas
urv 20 his credit. wherc IL viii draw 1 per
/ cent interest. When he leaves the serv-
| ice he can draw out the entire amount in
I one sum, If he desires. or receive II in
/ the form Of an annuity, payable quar-
D teTlE- If any remains dlICr MS ucdlA IL
/ is to be paid 10 his heirs.
| Employees who have been in the serv-
/ ice for some time. including all those who
may now be superannuated. could not be
/ expected to pay into the Treasury enough
money 10 secure their retirement in this
way, and SO it is proposed that present
employees commence paying when the act
/ takes effect and when they reach the re-
Quired age the government viii supply the
/ deficiency necessary TO provide for their
retirement IN the annuity specified in the
1 bill In such cases the employees VIII not
I have the option Of drawing the amount in
/ a lump sum. but must take il In the form
OF an annuity.
Amount of Annuity,
The amount OF tie annuity is 20 be ~
per cent Of the pay Of the employe for
each year Of his service. and from the
| time he enters the service until he leaves
| It he is required 10 pay such an amount
monthly as VIII. when he arrives at the
retirement age, be sufficient, with the ad-
dition Of the interest, TO pay him such an
annuity for the remainder Of his life.
If this plan Of retirement is adopted,
| il is believed that the government viii
/ experience the same economic or money
| benefits that have been uniformly expert
enccd by private corporations, resulting
/ from the securing &C more capable en-
tploves. and consequent performance OF
the work with greater efficiency and less
cost. The benefits to the employees are