Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-25
Present Plans in Effect In
clude Less Than | Per
Cent of Workers.
STATES MAY SEEK WAYS
OF AIDING UNEMPLOYED
Contributory Method for Retire
ment Pay Is Gaining
in Favor.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, January 24.-Thomas
n. McInnerney of Chicago, president of
the National Dairy Products Corpora- :
ton, must feel greatly satisfied with the
work OF his company for 1880.
When the sales of this immense or.
ganlzation went over the $500 600 900
mark for 1929, and made a net profit
OF $2ls576,000 during the year. it
Seemea lar cry from the time when
Mr.. Mc1nnerney cooled his feet in the
| outer offices of the Wall Street bankers
waiting for chance to ask them for
dustry."
$25,OO0.OOO In Profits.
The story can be told in a coIorful
way only by Tom Mclnnerney hlmsen.
But the substance of it is that the New
YORK bankers did not believe that
mliking cows" was a business, and
That 1t was beneath their dignity to
loan money In any such way"
But Mr.. McInnerney stuck to 1t, He
got his million then, and has secured
scores OF millions since. Now comes
the report that the total sales of his
coW-milking" business reached $685.
OOU,OO0 In 1889, an increase of SIS. OOO-
600 over the preceding year. The net
profits were $25,000,G00, or approxi-
mately $4.O7 a share on the 6,l5O.OO0
shares outstanding.
Even as late as 1923, the total sales
Of the National Dairy Products Co. were
81 $1,000 Then the company earned
$5.1O share on 100000 shares out
standing.
Today the National Dairy is paying
about go per cent of its earnings in
olvldends, and the balance Is being
used to expand the business in many
cities throughout the United States.
AND Tom McInnerney says he's Just
getting nicely started.
The National Industrial Conference
Board has issued monograph report
giving a description Of the various in
dustrial pension plans now In existence.
Business men better study this subject.
It's coming-the pension system.
The extension throughout the field
OF industry of pension plans adequate
In their provisions, eQuitably admin
1Stered and soundly financed, win do
much toward removing any real need
or excuse for resort to the dubious
board.
The contributory type Of pension
plan, as far as industry Is concerned,
is growing In favor, the board con-
cludeS. This Is q plan whereby every
employe pays a certain percentage Of
his weekly wage into the fund and the
company, too, pays q certain percent
age, the two together joining hands
to give, upon retirement, that economic
independence which every worker de-
sires.
Unfortunately, the number Of such
experiments in the United States Is
pitifully small, less than per cent Of
the workers. Unless American business
moves faster than 1t has into this
field during the last 10 years it is
almost certain that the State will set
up some plan designed to protect the
vast majority of workers.
Bankers Code Of Ethics.
In the code of ethics of the Amer
lean Bankers Association is found this
statement:
Bankers should never accept per-
sonal profit from any of the banks
transactions with customer A banker
should not use the cash or credit Of
his bank for the promotion of his
own personal business enterprises"
The relations being brought out daily
in the New York bank inquiry, regard
ing the operations of the defunct Bank
OF United States, indicate that some of
the directors and officers of that bank
were using the banks funds for stock
speculation. Stocks of these various
affiliated companies were thrown around
and juggled, like nobody's business.
John G. Flynn, student Of banking.
reviewing the situation in the New Re-
public, made this statement:
The proposals of bank superintend-
ents to prohibit banks from coupling
their stocks with those of other cor
porations, limiting the investment of
bank funds in the stocks of other cor
porations, prohibiting the bank officers
and employees from borrowing from the
bank, and prohibiting the bank officers
from becoming officers in any company
selling security should be passed at
this session of the Legislature, and the
same rule should be applied to ma
tional banks"
Here's a subject for the careful con-
sideration of the Glass Committee, now
investigating banking and credit con-
ditions
European Economic Union.
M BRAND, French foreign minister,
Europe's most eloquent and impressive
orator, is discouraged over the outlook
for a European political or economic
union.
He has worked for it, talked about
1t, written about itr-almost prayed for
1t for over year. Now at Geneva, an
attempt is being made to work out q
skeleton plan.
But no one there really believes it
can be brought about. Italy and Ger
many raised objections to it early on
the ground that Russia and Turkey
were not asked In. Germany's critical
position has caused DR.. Strasseman's
successor, DR.. CurtiSS, to modify his
position. Even M. BRAND, himself.
has lost much. prestige in France, due
to the rise of q new radical group,
who are fast taking control Of the
French government.
Tariff walls are the curse Of Europe.
An economic union of all Europe-its
80 nations-iS fantastic. Far more
practical would be an economic union
Of the Balkan States, for example-an-
other one of Northern Europe and still
another one of Western Europe.
An economic union of the whole Of
Europe may come some day-probably
when the intense nationalism created
BY the Great War gives way to an
based ON the enlight-
ened Self-interest of all Of Europe. But
who is there to say that such a time
has arrived, while the struggle for
higher and higher tariff walls remains?
The decision at Geneva to carry on
his Pan-European conference behind
closed doors looks like q weakness. But
S It? Perhaps in such fashion Euro
bean statesmen will really tell more
'rank than they otherwise would Just
Why Nch q union at this time no
chance to succeed. a.
- nnrsr Ailisnee X ~,Sws