The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-01-11
INDUSTRIAL PENSIONS
By FREDERIC j. HASKIN
By FREDERIC ]. HASKIN.

stocks Of the corporation until they now
constitute the great majority Of the stock
holders, though, of course they do not
own the majority OF the stock It is be-
lieved that by this method the employees
Of the company will be able 10 accumu-
late enough 10 provide them a steady, if
small, income for their old age
The literature Of the industrial pension
in the United States is exceedingly
scarce. Except for the fugitive para
graphs in unindexed newspapers there is
little on which the student Of the subject
may put his finger But the people vino
have tried IT, so universally commend Il
that one will probably not have 10 wait
long for the time when the Industrial
pension will be the rule, rather than the
exception, in the United States. In this
connection Il is interesting 20 note that
while in Europe the governments have
taken the lead in these matters Of re-
tiTement and pensions. over here private
corporations have been first 10 try them
Most European governments have sys-
TENS Of compulsory insurance Germany,
for Instance has subsidized insurance in
situations which write policies against
sickness. accident. and old age. The gov
eminent compeis everybody to take out
this insurance, but by liberal subsidies.
which it gives 10 the companies. II is able
10 give its subjects exceedingly low rates.
II is held that this is better than q
straight-out gift from the government. as
il helps the individual TO help himself
rather than lean on the government
One Of the principal differences to be
faced IN this country IS the evil Of ma
lingering, which is another word lor
playing sicR The sick pay which this in
surance provides makes it worth many
a mans while to feign sickness, and there
are, as "a result, thousands of cases Of
malingeTing reported every year. Other
nations have trouble with the old age
pension. From Australia comes the re-
port that there are many instances TO be
found here where old people give away
their property 10 their children. and then
deliberately have themselves turned adrift
in order that they may receive the benefit
of the bounty OF the government All
sorts OF administrative troubles have been
experienced I'm carrying out the civil pen
sion idea English writer's are just now
advocating the newest form Of insurance.
They seek TO have men insured against
idlcness.
Those who read the signs of the times
believe the industrial pension is but an
other evidence of the closer relationship
that is TO exist between capital and labor.
Experience has demonstrated to the en-
ployer that nothing Yields such large div
idends as a satisfied working force. and
old policies have stood aside for this new
one Millions of dollars are being spent
by the employers Of the United States in
providing means Of individual uplift for
their workingmen. Club rooms, gymnasi-
ums homes, ard schools have been pro
vided. and every effort is being put forth
TO foster the most friendly relations be
tween the employer and the employed But
10 the better relations that are to exist
between labor and capital, none of these
will hardly contribute so much as the in
dustTial pension. How close this relation
ship is TO become is shown by the action
Of the Erie. which is also arranging to
a pension system II has made
a rough draft of a system which it thinks
VIII be suited to its needs. and has sent
this out among its employees with the re-
quest that they feel free TO make any sug-
gestions they may have for its improve
ment.
The New York street railway was prob
ably the pioneer street car company 10
pension its employees, and the First Ma
tional Bank. of Chicago. was the first
banking institution to provide a retire
ment fund for its force. The cost of pen
siUns 10 the corporations giving them Is
not excessive. Probably less than per
gent of the employees Of a given railroad
will live 10 become eligible to such pen
sion. and even a smaller percentage still
will live 10 draw it for more than five
years Thus. while insUTing to every
faithful employee that he will have a COM
Portable old age after his superannuatiion,
Ii comes more often as protection
against a time that never comes Those
which have made the re-
firing age at sixty-five will, 6f course,
have to pay more pensions and longer
pensions than those which make a limit
at seventy. Ali roads that give pensions
have arranged it so that if. in the judg
ment Of the officials. a man should he re-
tired earlier than the limit fixed, it may
be done, not more than five years earlier.
To-mOrrOw-Our Fleet at Rio de
JaneirO.