Evening star., 1948-04-25
Operators Claim
|CoaIFundAnows
But $50 Pension
Contention Is Based
On Report of Actuories
In Firm Lewis Hired
By jones Y. Newton

by Jomes I. Newfon
Soft coal operators, girding
for renewal of the battle with
John L. Lewis over pensions for
miners, declared last night the
United Mine Workers welfare
fund will support pensions of
only $50 a month for men IS or
older.
The operators disclosed the final
results of study of the pension
problem made by a firm of actuarial
experts, as Mr.. Lewis prepared to
put into effect the Bridges plan,
calling for $100 monthly pensions
for miners 81 or older.
Mr.. Lewis has called a meeting
of welfare fund trustees for 4:30
pm. tomorrow, presumably to make
arrangements to begin the $100-a-
month payments provided in the
settlement worked out by Senator
Bridges, Republican, of New Hamp-
shire. Senator Bridges is the neu-
tral member of the trustees board.
and Ezra Van Horn represents the
operators.
Court Asked to Void Plan.
Mr. Van Horn last wee asked
District Court to void the Bridges
plan and to hold it's author and
Mr.. Lewis personally liable" for
any expenditures from the welfare
fund until his injunction request
can be heard. He charged that the
plan, pushed through a trustees
meeting over his objections, violates
the Taft Hartley Act in several re-
spects and would bankrupt the fund.
The final report of the actuarial
experts shows that the present well
fare fund, supported by payment Of
10 cents per ton on all coal produced,
would fall far short of taking care
of the Bridges plan. 1t was made
by the same firm Mr.. Lewis hired to
make a preliminary study last fall.
The study allows for pensions for
the miners employed by the coal
firms contributing to the welfare
fund-those companies who signed
the present contract with Mr.. Lewis.
Mr.. Van Horn estimates the total
number of employees at 336, 900 and
the number 65 or over who are still
working at 1900. The 10 cents per
ton royalty will bring in about
$50, 100000 a year.
S35,0OO,O00 for Pensions.
A total of $35 900, 900 would be put
into the pension fund each year,
leaving the rest for payment Of
death, accident and sickness benefits,
disqualification and medical care for
the miners, which is also called for
in the industry contract with Mr..
Lewis.
First-year cost Of $50 monthly
pensions to the miners IS or older
would be $4,545 900. The cost would
rise rapidly in succeeding years to
peak of S48 ,440, 900 a year.
The balance from the early low
cost years would be placed in re-
serve fund, which the experts said
by 1872 would total $500, 100000. In
terest from the reserve fund, plus
the annual contributions of $35 ,000,-
900, would support the $50 pensions
from then on.
The experts placed the minimum
cost of the contract benefits other
than pensions at about $l4,500,0 900
a year. However, no allowance is
made in that figure for payments to
miners dependents, or for pay
ment of a death benefit after the
miner has retired.
Benefits Included.
That figure would include these
benefits:
Payment of $1,000 for death be-
fore retirement; $40 weekly accident
or sickness payments for a MAXI
mum of 26 weeks, disqualification,
IS a dey for 81 days; $50 to cover
other hospital expenses, and surgi-
cal expense up to $3.50.
There was no estimate from the
experts as to the cost of the Bridges
plan, but the operators claim a
royalty of from 80 to 20 cents per
ton of coal would be required to
support it.
Their figures show that 1880 of
the men now working for contrib
utors to the fund are 81 or older.
compared with the $500 figure used
by the actuaries. Then, the Bridges
plan would cover all miners who
have retired since May %, 1916.
adding several thousand others to
the list. Apparently, the Bridges
plan would also include the old
among the estimated 10000 UNIV
members whose employers are not
contributing to the fund.
The operators claim they are also
obligated to provide pensions for
the old among some $4,000 foremen,
supervisors and straw bosses" who.
under the Taft Hartley Act, are
exempt from the contract with the
UNIV. This has been called to their