Page:American Journal of Sociology Volume 2.djvu/522

 508 THE AMERICAN JOURNAL OF SOCIOLOGY

Such is the system in principle. In practice the firm sets aside each year a calculated amount on the profits of the busi- ness. Against this distribution account the amounts paid for life insurance under the provisions of the insurance system, and the amount necessary to maintain the pension fund are con- sidered fixed charges. If in any business year the net profits are not sufficient to cover the amounts paid for life insurance and for pensions such deficiency is forwarded as a charge against the net earnings of the following year ; the remainder, after the payment of such fixed charges, is dispensed under the provisions of the endowment fund.

The pension system provides that every male employe over twenty-one years and not over fifty years of age at the date of entering service shall be entitled, after ten years of continuous service, to a pension as follows : In case of partial or total ina- bility to work, on account of accident, sickness or old age, an employe is entitled to 50 per cent, of the wages earned during the last year preceding the disability ; 60 per cent, after thirteen years ; 70 per cent, after sixteen years ; 80 per cent, after nine teen years ; 90 per cent, after twenty-two years; and 100 per cent, after twenty-five years of continuous service. In case of accident or sickness contracted while in the service of the house, previous to the completion of ten years' service, each employe is entitled to a pension of 50 per cent, of his wages earned during the year next preceding such accident. No pension is to exceed $1000. That is, the highest schedule of pensions falling to employes who draw salary or earn wages to the amount of $1000 a year or over, is as follows : After thirteen to sixteen years of service, a pension of $600 while such disability may last ; from sixteen to nineteen years of service, a pension of $700 ; from nineteen to twenty-two years of service, a pension of $800 ; from twenty-two to twenty-five years of service, a pension of $900 ; after twenty-five years of continuous service, a pension of 1000.

The life insurance system provides that every male employe, after five full years of continuous service, dating from the age