The Waterbury Democrat., 1931-01-30

gently; it is not certain yet how many employees they cover. Two of the other 13 plans are now defunct. The fund of the Rockland Finishing company was exhausted within three years of its initiation, and the Amer ican Cast Iron Pipe company has abandoned its formal plan, although benefits are still paid as occasion re- .quires. The eleven other companies employ about 10000 workers of whom about $500 are eligible to un- employment benefits.
 The immediate stimulus to the es- tablishment of company plans can be round in acute unemployment sis- nations. says the study analysis. Moreover, the plans have beet initiated largely by employers inter- ested in scientific management, and for the most part they have been adopted as part of a bread plan for Iregularizing employment. These companies thought that the expense Of providing unemployment pay would furnish an incentive to regu- larization and reduce the cost of turnover. Some at least hoped the plans would be a means of strength ening their hold on the working force and increasing it's loyalty to the management just as some of the unions hoped to use out-ofwork benefits to bind the members more closely to the organization. While the profit motive was necessarily dominant throughout, twas temper ed in several instances by human ltarian considerations and a sense of industry's responsibility for employ ment security.
 Executives Quoted
 Executives of two of the leading companies operating their own un- employment insurance plans are quoted in System. One of these is Henry Dennison, president of the Dennison Manufacturing company, who says:
 from use during prosperous times and put into circulation in slack l times are of value in relieving dis tress, and of still more value in help ing to keep our economic block pressure from running too high and falling too low, but they are of the greatest value of all in their psy- chological effects upon management. l "Such funds set up action and re- action. Their direct action is to help in any present period of unem- ployment; their reaction is to sting employers into healthy irritation to make them think of putting the screens on. Through them we get that positive spur which cold cash outlays exert,-which is direct and actual and not to be argued away as easily as estimates of possible future indirect losses can be. They offer very practical arguments against un- due expansions at the peak of the cycle and for the toughest kind of thinking as to what can be done to keep things moving in the cycles trough"
 c. R. Cary, vice-president of the Leeds and Northrup company, Phila- delphia, manufacturers of electrical and pressure instruments, is quoted as follows:
 | Unemployment insurance is an eleme1t of industrial life which has come to stay. Although it is rela- lively new in this country, there is little doubt that it is destined for wide application. Whether the ap- plication of such insurance is to be handled intelligently by each indus try. or les sintelligently by the state, is in no small measure in the hands of management. If state insurance becomes necessary, industry Will have to foot the bill with few, if any, compensating advantages.
 eff the individual industry can and does devise it's own adequate in- surance, the expense involved may be in large part, if not entirely, offset by an immediate and continuing re- suit of the policy, the development and maintenance of the project may be made direct and mutually sat- isfying bond between the company and it's employees. It is my hope that industry will introduce unemploy- ment insurance and avoid the politi- cal action which otherwise is almost | a certainty'