The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-09-17
SWOPE DRAFTS
NEW PACT FOR
U. 5. |NDUsTRY
Security for Worker and
Employer Sought by
G. E. President.
ADVANTAGES ARE CITED
Old Age Pensions, Life and
Unemployment Insurance
Are Proposed.
BIZ United Press

crate al American industry in work
ing out an economic plan to safe
guard employer and worker and
solve permanently the problem OF
''hard times" has been drafted by
Gerard Swope, president of the
General Electric Company.
Swope outlined his plan to SOC
members Of the National Electrical
Manufacturers Association, repre-
senting the fifty divisions of the in
dustry, at a banquet Wednesday
night.
The plan calls for organization
Of each industry into a trade
association regulating production
through agreement on trade prac-
tees and ethics. and providing
standard accounting methods and
regular financial reports.
Labors interests are protected
through provisions for workers
compensation, old-age pensions, life
and disability insurance, and I'M
employment insurance.
OiNcS WOIhCI 0COuAhbJ
The interest of the general public
is protected through federal super
vision. The federal trade commits
sion or a bureau of the department
of commerce would regulate COM
panies and trade associations.
Swope's plan gives the workman
a sense of security in his job and
tends to remove fear of the forty
year desdline" as he grows older.
The proposal was drafted in con-
sultation with leaders of the cleo
trical industrial although it was
planned to embrace all United
States industries-and has the tacit
approval of that group.
Owen d. Young, board chairman
of General Electric, also spoke at
the dinner and heartily Endorsed
the plan.
Swope said five principles under
lie his program;
Every effort should be made to
stabilize industry and thereby sta
Billie employment to give the
worker regularity and continuity of
employment, and when this is prac-
ticable, unemployment insurance
should be provided.
Industry Should Lead
"Organized industry should take
the lead, recognizing it's RESPONSE
bility to its employees, to the public,
and to its StockholderS-rat than
that democratic society should act
through its government.
There should be standardized
forms Of reports so that stockhold-
ers may be properly informed.
Production and consumption
should be co-ordinated on broader
and more intelligent basis, thus
tending to regularize employment
and thereby removing fear from the
minds of the workers as to continu-
ity of employment; as to their sur
viving dependents in case of deaths,
and as to old age.
Every effort should be made to
preserve the benefits of individual
originality, initiative, and enterprise,
and to see that the public is assured
that its interests will be protected"
Adoption of the proposals will re-
quire modification of "some exist
ing laws" Swope admitted. BY this
it was understood he referred to the
Sherman antitrust laws.
Cities Workers Benefits
Swope's plan would benefit the in
dividual worker in the following
manner:
He would be protected by work
mems compensation,
He would receive a life and dis
ability insurance policy with face
value equal to years pay, paid for
by the worker and the company on
equal terms.
He would receive a pension on re-
tirement from fund to which he
and the company had contributed
equally. The pension would equal
half his regular pay.
If tightening of business con-
ditions should cause him to lose his
job he would receive payments up to
$40 a week from a fund to which
he and the employer had con-
Jributed, and the fund also would be
available for loans.
All the above benefits include pro-
visions allowing him to transfer
from one company to another, or
from one industry to another with
out losing any of the funds he has
contributed to the various forms of
protection, as long as the firms for
which he works are among those
bound by the business con-
stitution."
Employers Gains Listed
The individual employer and
stakeholder, on the other hand,
wuold be benefited as follows:
The trade association would reg
ulate trade practices and business
ethics.
1t would establish standard meth
QdS Of accounting for the particular
@AANNoNA ~ &c Wei do oO<i4AQdAQ 4Ol111S
OF financial statements.
1t would collect and distribute in
formation on volume of business, in
ventorieS, Standardization of prod
ucts and Stabilization of prices.
The stock holder would get a
statement of earnings and condi-
ton of the business at least once
each quarter.
Under Federal Regulation
Plans of the individual trade as
sociations would have to be ap-
proved by the federal supervisory
body. A general board of admin
istration, composed of three mem
bers representing employers, three
representing labor, and three APP
pointed by the federal board-would
interpret the insurance and pension
features Of the plan and organize
and administer the trust funds.