Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-17
Job PROTECTION
UNDER j. S. URGED
Gerard Swope, General EIec-
trio Head, Would Stabilize
Trade by Group.
Enroial pispatch to The star.

special Dispatch to The star.
NEW YORK, September ia plan
whereby American industry would I'M
dertake to stabilize all its branches. I'M
der Federal Government supervision,
and endeavor to protect its workers
against unemployment, disability and
old age was submitted last night by
Gerard Swope, president OF the Gen.
eral Electric Co., in an address broad
cast at the annual dinner of the Ma
tional Electric Manufacturers Associa-
ton here. owen D. Young. chairman
of the board of the General Electric Co,
hailed the plan as one whose design
recognizes obligations to employees and
to general economic stability which have
only been accidentally discussed be-
fore"
Mr.. Swope proposed that legislation be
enacted to require all industrial and
commercial companies with so or more
employees to form trade associations
within three years and to work toward
establishing a balance between produc-
ton and consumption through control
Of production within the associations
Each company would be obliged to
adopt a uniform accounting system and
submit quarterly an annual financial
statement to a Federal Supervisory
body.
For the protection of employees the
plan enyisioned adoption of all COM
panies of life and disability insurance,
a pension system and unemployment
insurance for all workers receiving
$1,000 a year or less. All employees.
after five years service, would be
obliged to put aside at least / per
cent of their earnings into the pension
fund and similar sum into the I'M
employment insurance fund. Further
more they would match the employer,
dollar for dollar, in the payment Of
premiums on life and disability insur-
ance. These protective systems would
be on the same basis in each branch
of industry. thus equalizing COMPETE
tive conditions The plan offered pro-
visions whereby an employe might
carry with him his accrued benefits if
he should change his employer, and 1t
suggested management-employe particle
patton in the execution of the whole
program.
Retirement at 20.
The pension plan is based on retire
inent at half pay at the age OF 10,
and the unemployment insurance would
provide half pay, up to maximum OF
$40 weekly, to employees who were
laid of.
Under the plan each industry would
form a general board of administration
composed of representatives Of en-
ployer. employees and the public, the
publics representatives to be appointed
by Federal supervisory body.
In a preamble to his plan, MIR.
Swope said coordination of production
was impossible under the present laws
Before asking for their amendment or
repeal he thought industry should as
sure the public of the constructive ma
ture of the steps it would take.
Organized Industry should take the
lead" he said, recognizing its respon-
sibility to its employees, TO the public
and to its stockholders, rather than
that democratic society should act
through its Government. If the various
States act, industry viii be confronted
with different solutions, lacking uni
formity and imposing varying burdens,
making competition on national scale
dificult. If either the individual States
or the Federal Government act, the
power of taxation has no economic re-
Mr.. Young pointed out that Mr..
Swope before Offering the plan, had
conferred with his associates in the
electrical manufacturing industry. Mr..
Swope. he added, would be the first TO
admit that the plan was not free from
criticism. Economic planning, Mr..
Young continued, would contribute to q
more stable prosperity but he reminded
his audience that, like all other things
in this world, it demands its price,
and that price would be surrender OF
some individual freedom.
Chaos without Set Plan.
Nov, am not saying that we should
have an economic plan" Mr.. Young
continued. "All am saying is that we
should have something for discussion,
so as to see definitely what it costs. II
the individual units of production are
ready to surrender their liberty of ac-
ton to the extent necessary to execute
g plan, then the further question arises
aC to whether the public is ready to
have them do So We can retain in this
country unorganized individual plan
ming and operation, but If we do its ac-
rion will necessarily be at times cha
cite and We shall. as result, pay the
economic penalty for that disorder,
such as We are paying now.
We can in this country have organ
lied economic planning with some cur
tailment of individual freedom, which,
II the plan be wise and properly exc
ruted, will tend to diminish economic
disorder and the penalties which we
pay
There was also, Mr.. Young continued
the question to whom this individual
freedom was to be surrendered, and
that would be for the public to say. He
welcomed the plan, mot as a final an
Swer to the problems with which II
deals, but as definitive proposal which
will enable US TO consider these prob
lens intelhgently.' There were, he
concluded, three courses open-to dc
nothing, to place upon industry the re-
execution Of definite plan, to acqui-
esce in the Government providing the
means for employe protection through
the power Of taxation.
Robertson Sees Good in Plan.
A. W. Robertson, chairman Of the
Westinghouse Electric g. Manufacturing
Co, said he had read the plan several
times, but was not at all sure that he
understood it completely. He thought
the spirit Of cooperation which II
called for would undoubtedly result In
some specific concrete good, even If, In
putting the plan into execution, flaws
were found in it.
Continuing, Mr.. Robertson said:
Inc plan mentions but does not
Elaborate upon the need Of planning
and coordination between competing
companies, SO that consumption and
production of goods may be co-or-
dinated or harmonized to the end thai
economies may be made, overexpansior
avoided and regularity of employment
provided.
Unless some method Is provided SC
that factories may be operated more
regularly than they have during the
last few years Il refer to the fact that
in 1928 and 1929 we were operating
"a hours day every day and now We