Page:The New International Encyclopædia 1st ed. v. 14.djvu/911

* OLBERS. 7 suit Schilling, Williclm Others: Sein Leben und siine 'Werkc (Berliu, 18'J4). OLCHAS, ol'chaz, or Mangun. One of the North Tuugusic tribes dwelling at the mouth of the river Amur, in Asia, and clc*ely related to the so-called Keindeer Tunguses. See Tlngus. OLD AGEj Diseases of. See Senility. OLD AGE PENSIONS. Allowances paid to the aged workman either by the (Jovermucnt or by the employer. The term is commonly extended so as to include allowances from a fund to which the recipient has contributed, Init which is de- rived only partially from such contributions. Old age pensions are usually defended on thi' ground that a large class of laborers are unable to make adequate provision for old age, and hence are certain to become paupers when no longer able to work. Of these aged paupers, a large num- ber have been sober and industrious workers, and for this reason their fate serves to discourage the workmen of the lowest paid classes. Op- ponents of old age pensions contend that if pro- vision for old age is made by the State, one of the chief incentives to thrift will be removed. Defenders of the plan argue that it is simple justice that a faithful workman should be de- centlj- fed and housed when incapacitated for work by age. It is questioned whether such pen- sions actually discourage thrift; whether the despair of escaping pauperism which is common in certain classes does not do more to destroy in- dustrious habits than a judicious plan of old age pensions. In Europe the provision for old age is a subject of great practical importance. The recognition of State responsibility is an in- novation of the last decade. A system of State pensions has been established in Denmark and compulsory insurance obtains in (Jermany and Sweden. Similar laws have been enacted for coal-miners in Austria (1880), France (1894), Rumania (1895), and Belgium. The State may ci'eate institutions for voluntary insurance and may ofl'er indueement.s to the workmen to insure themselves, as in France and I'elgium. Privately organized institutions, e.g. friendij societies con- trolled by the State, may ])erl'orm this function, as may also be done through funds set apart by the employer — a common plan in transportation, mining, and the iron and steel business. Compulsory insurance originated in Germany. Dr. Schacllle, the founder of State insurance, con- ceived the plan in 18G7. In the early seventies it was generally discussed, and Wagner and other economists gave it their support. The present law (Invalidity and Old Age Insurance, 1889; revised July, 1899) was enacted through the in- fluence of Bismarck, w'ho hoped thereby to check the growth of socialism. All workmen, assist- ants, journeymen, foremen, engineers, servants, clerks, and teachers, who are sixteen years of age and upward, and who do not receive more tluin $500 yi'arly. must c<mtrihute to a pension fund, to which the employer must contribute equal sums, while the Empire adds .$12.50 an- nually to each annuity and pays the cost of ad- ministration. Thirty-one institutions have been provided to which payments are made by means of stamps. Pensions are paid to septuagenarians. Sweden introduced eumpulsorv insurance in 1SS9 and Iceland in 1890. A Parliamentary com- mission to investigate the subject was appointed in Norway in 1894. In Finland old age insur- 77 OLD AGE PENSIONS. auce is voluntary, with loeal pension funds ad- ministered by the State. Denmark (1891) grants small pensions in the form (jf additional income to the worthy poor. Tliis dill'ers from poor relief in that the recipient retains his right to vote. In Belgium, the Caisse GenOral d'Kpargne et de Ketraite (1850) is guaranteed by the State. The system has rapidly developed since 1891. Subsidies are otTered to friendly societies, and the attention of employers is called to the bene- fits of insurance. The new accounts increased from 568 in 1888 to 4.3,873 in 1898. In France the Caisse Nationale des Retraites pour la Vieil- lesse (1850) has not been popular. It is used by the railroads and other corporations which provide pensions for their emjdoyees. Among the many corporations whieh [u-ovide old age pensions may be mentioned the Joint Stock Com- pany of Vielle (zinc workers) and the Gaa Company of Paris. The jjension funds are usual- ly supported by contributions from the employees, but sometimes entirelj' from the profits of the company. In England Canon Blackley first initiated the movement for old age pensions, but the name of Charles Booth is chielly associated with its later development. He advocates granting pensions without regard to age or desert. Several re- ports of committees of Parliament (notably 1891, 1899) cover the ground extensively. Some trade unions provide pensions. In 1898 New Zealand passed a pension law granting £18 yearly to citizens of twenty-five years' residence who were sixty-five years of age. Deductions are made when there are other sources of income, so that the stigma of poverty is at- tached to the scheme. In the United States there has been no exten- sive demand for the adoption of the system by the Government, although it has long existed in embryo in the practice of retiring on half pay certain officials, who have served a given num- ber of years or have attained a certain age. There is also a marked tendency among railroads and other large corporations to pension their aged employees. The Chicago and Northwestern Railroad on December 12, 1900, adopted a plan ■n-hich is being followed by other roads. The pen- sions are managed by a board of four officials, and all employees may enjoy them. Men seventy years old who have been thirty years in ser- vice are retired; those from sixty to sixty -nine who have served thirty years and are incapaci- tated may be retired at the discretion of the board. The pension amounts to 1 per cent, of the average monthly payment, for the ten years preceding retirement, for each year of service. The Pennsylvania, Illinois Central, Union Pacific, Philadelphia and Reading, and the Grand Trunk have recently adopted jieiisicm systems. Among street railways, the jletropolitan. New York (.July 1, 1902), provides for the retirement, vol- untary and involuntary, of nieii between sixty- five and seventy-five years of age after a .service of twenty-five years. For a continuous service of twenty-five years the pension amoiuits to 25 per cent, of a workman's salary, and increases with length of service. A number of gas com- panies have pensioned their aged employees, notably the Consolidated Gas Company of New York City, and the (las Company of (irand Rap- ids, Mich. .Andrew Carnegie has providcil for the pensioning of employees at the Pittsburg