Page:American Journal of Sociology Volume 2.djvu/523

 SYSTEM OF LABOR PENSIONS AND INSURANCE 509

of twenty-one, is entitled to a life insurance policy of #1000, and for every five years of continuous service thereafter, up to fifteen years, $1000 additional; making for this class of employes a maximum insurance of $3000. Employes entering the service at any time between twenty-two and twenty-six years of age, shall be entitled to not more than two policies of $1000, one after five years and the other after ten years of continuous ser- vice. Employes entering the service at any time between twenty- seven years and forty years of age are entitled to policies of $1000 after five years of continuous service. For all employes who enter the service after the age of forty years, and for all those rejected by the life insurance companies, the amount of $35 is annually deposited, but in no case are principal and inter- est to exceed $1000. In case of death the amount then to the credit of any employe is paid to his heirs and assigns, and all policies are made so payable.

The endowment system provides that every male employe over twenty-one years of age, after five years of continuous ser- vice, is entitled to an endowment account, upon which he is credited at the end of each year with the amount which the manufacturing record has shown to be earned over and above the wages paid him. If, through gross carelessness, the employe has caused the house a loss, such loss is charged against the above account. This fund is payable when the employe has arrived at the age of sixty years or upon his death. Interest at 6 per cent, is credited to the account. Should an employe quit the service of the house, interest ceases and the principal is paid as specified. Against this account any employe may obtain a loan not exceeding the amount to his credit by paying interest thereon at the rate of 6 per cent., and by giving collateral security. This system replaces the profit-sharing system, and has no vital connection with the pension and endowment sys- tems.

None of these systems impairs the right of the employer to discharge an employe, or the right of the employe to quit serv- ice at any time for any cause. There are various minor pro-