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Do aot deface books by marks and writing. Cornell University Library HD7106.U6 P41 1919 Report of the Pennsylvania commission on 3 1924 030 079 515 on I olin no Cornell University Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924030079515 1 M.« c L i. O)/ REPORT V^?l''«/J OF THE PENNSYLVANIA COMMISSION OM OLD AGE PENSIONS MARCH, 1919 HARRISBURG, PENNA.: S. L. L. KXTHN, PBINTBB TO THB COlOIOirWXALTH. 1919 CONTENTS. Page. I. Letter of Transmittal, 3 II. Forward 5 III. Introduction, 7 1. History of Commission 7 2. Scope of Commission's Work 8 3. Methods of Procedure, 10 4. Outstanding Features, 11 5. Concluding Remarks, 13 IV. Chapter I — The Problem of thv". Aged in Pennsylvania 15 A. Study of the aged inmates in almshouses, 16 1. Facts about inmates 15 2. Character of almshouse paupers, 31 3. Movement of almshouse population 34 4. Status of County Almshouses 35 5. Westmoreland County Home Investigation, o9 6. General condition of county poor houses, i2 7. The problem of outdoor relief, 59 8. Northampton County Home Investigation, fiO 9. Detailed budget study of Berk's county almshouse 61 B. Study of inmates in fraternal and benevolent homes for the aged, 1. Facts about inmates, 6(1 2. General description of homes for the aged, 74 C. Facts concerning recipients of private outdoor poor relief, 82 D. Work of Philadelphia Society for Organizing Charity, S6 E. Study of the non-dependent aged population 88 V. Chapter II — Extent and nature of existing pension systems in Pennsyl- vania 113 1. Industrial pension systems in Pcnsylvaniu 113 2. Railroad pension systems in Pennsylvania, 145 3. Teachers' retirement funds in Pennsylvaniii, 159 4. Municipal employees' pension systems, 179 (a) Police retirement funds 179 (b) Firemen retirement funds, 190 (c) General municipal employees 193 5. State employees' retiremi'nt provisions 195 6. United States pensioner 197 7. Old age benefits of fraternal organizations, 197 8. Trade union superannuation benefits 200 VI. Chapter III — The problem of old age pensions, — What it is 211 1. Introduction, 211 2. Voluntary insurance, 218 3. Compulsory contributory insurance, 219 4. Straight or non-contributory pensions 223 (i) Page. 5. iJniveimal and partial schemes of insurance 231i VII. Chapter IV— Old age pension systems of foreign countries 235 A. Introductory note, 235 B. Voluntary and subsidized systems, 235 1. Belgium 235 2. Canada, 237 3. Italy 238 4. Massachusetts 240 5. Spain 244 6. Switzerland 245 7. Wisconsin, 246 C. Compulsory contributory old age insurance, 246 1. Austria, 246 2. Chile, 247 3. France, 248 4. Germany 240 5. Greece 252 6. Iceland 253 7. Iiuxumburg 253 8. Netherland 254 9. Norway, 256 10. Roumania 258 11. Russia, 258 12. Sweden, 259 13. Switzerland 260 D. Non-contributory or straight pension systems, 262 1. Alaska, 262 2. Arizona, 263 3. Australia, 268 4. Denmark 266 5. Great Britian, 267 6. New Zealand 269 E. Summary of existing old age pension schemes 271 VIII. Appendix A 273 1. Typical cases of aged dependents found in Philadelphia, Pittsburgh and Reading, 275 2. Stories of almshouse inmates, 280 3. Stories of abandoned parents, 281 IX. Appendix B 288 X. Appendix C, 290 LETTER OF TRANSMITTAL. March 15, 1919. To the General Assembly of the Commonwealth of Pennsylvania : In compliance with Joint Eesolution No. 413, providing for the appointment of a commission to investigate and report upon the subject of old age pensions, we have the honor to transmit to your honorable body^ the report which follows. Kespectfully, JAMES H. MAUKER, Chairman. (Mrs.) EDWIN C. GRICE, ALLEN W. HAGENBAOH, DAVID S. LUDLUM, HARRY W. SEMPLE, ALVIN C. SPINDLER, ABRAHAM EPSTEIN, Director. (3) m (4) FOREWORD. This volume marks the result of a task undertaken with some misgiving. When the Commission had been appointed the time allotted to the work had been lessened by several months. But, even with our limited period of activity, we feel that the result of our efforts is not at all discreditable. This is to a great extent due to the hearty efforts of those who engaged in the outdoor services, cov- ering the field of investigation, and who have given us valuable data. We were also much aided by the employers of the State, by the stewards and managers of charitable institutions, a number of uni- \ersity professors and the heads of the departments of the Federal and State Governments, to all of whom our thanks are due and tendered. The Commission wishes to give due credit to Mr. Abraham Epstein, the Commissions' Director of Kesearch, for his excellent service in bringing out this report. He has directed the out-door investigations, compiled the results, and written the comments of this, our tenta- tive accomplishment. Much credit is also due to the faithful services rendered by Mr. Anatole Feldman and Miss G. E. Maeder, the assistants in the office. We trust that all who study the pages of this report will derive equally, as much information from it, as we experience satisfaction in its presentation. JAMES H. MAURER, Chairman. (Mrs.) EDWIN C. GRICE, ALLEN W. HAGENBACH, DAVID S. LUDLUM, HARRY W. SEMPLE, ALVIN C. SPINDLER. (5) (6) INTRODUCTION. I. HISTORY OF COMMISSION. During the 1917 session of the General Assembly of Pennsyl- vania, Honorable Governor Wm. C. Sproul, then a member of the Senate, introduced joint resolution No. 413, providing for the appointment of a commission to investigate and report upon the subject of old age pensions. The resolution follows.- "Whereas, Progressive legislation has been enacted in some States and nations establishing a system of pensions for aged and incapacitated citizens, and a number of plans for accomplishing this result have been suggested at various times in Pennsylvania; "Therefore, be it resolved. That the Governor of this Common- wealth be, and he is hereby, authorized and directed to appoint a commission, to consist of seven reputable^ citizens of Pennsyl- vania, who shall serve without compensation other than for their reasonable expenses, to look into the general subject of old-age pensions, and to investigate the various systems provided for this purpose in other nations and States, together with all the facts relating thereto, especially as bearing upon the industrial and other conditions prevailing in Pennsylvania, and with a view to their practical adaptability here. Said commission to have full powers to subpoena witnesses and to secure information under the authority of the Government of the Commonwealth, and to make its report to the Legislature not later than March fifteenth, one thousand nine hundred and nineteen. Said commission shall con- sist of two members of the bar of the Supreme Court of Pennsyl- vania, who have studied social problems, two employers of labor, two members of recognized labor organizations, and one citizen of the Commonwealth, who shall be a woman experienced in the study of social problems. Said commission shall formulate such plans for its organization and work as may seem desirable to its member- ship; and an appropriation of five thousand dollars (|5,000), or so much thereof as may be necessary, is hereby specifically made for the purpose of carrying out the work of said commission." The resolution was approved by Governor Martin G. Brumbaugh on the 25th of July, 1917. In accordance with the provisions of the resolution. Governor Brumbaugh appointed the following persons as members of the Commission: Judges Robert S. Frazer and Emery A. Walling, representing the Supreme Court of Pennsylvania; Messrs. Wilson (7) H. Brown, of Philadelphia aud David S. Ludlum, of Ardmore, rep- resenting employers of labor; Messrs. James H. Maurer of Beading, and Harry W. Semple of Philadelphia, representing organized labor add Mrs. Edwin C. Grice, of Philadelphia. The first meeting of the Commission was held in the Governor's oflSce, on November 20th, 1917. At this meeting, Mr. James H. Maurer was elected permanent chairman. A short time later Judges Frazer and Walling sent in their resignations because they felt it inadvisable for judges of the Supreme Court to serve on a commission and help draft legislation which they might in the future be called upon to judge with refer- ence to its constitutionality. In their stead. Governor Brumbaugh appointed Messrs. Warren K. Miller, of Allentown, and Alvin C. Spindler, of Pittsburgh, as representatives of the bar. In October. 1918, the Commission lost, through death, two of its most active members in Wilson H. Brown aud Warren K. Miller. The latter's place is now filled by Mr. Allen W. Hagenbach, of AUentown. The place of Wilson H. Brown is still vacant. The first organization meeting of the Commission did not occur until February 1918. At this time the Commission engaged a sec- retary who gave part time to the Commission's work. The intensive work of the Commission did not begin until the engagement of Mr. Abraham Epstein, as Director of the Commission's researches in the latter part of June 1918. II. SCOPE OF COMMISSION'S WOEK. The resolution specified that the Commission "look into the gen- eral subject of old-age pensions, and to investigate the various sys- tems provided for this purpose in other nations and States, together with all the facts relating thereto, especially as bearing upon the industrial and other conditions prevailing in Pennsylvania, and with a view to their practical adaptability here." To comply with this was an immense task in the short period of time left. The Commission was immediately confronted with numerous perplexing problems. The resolution required it to answer (1) with regard to the general subject of old age pensions; (2) as to the various sys- tems provided for this purpose by other states and nations and (3) as to the soundness and need of such action in Pennsylvania. From the start, however, it became aware that in addition to the above, it would also be required to examine what has already been done in this State and its adequacy to meet the needs; the mistakes pointed out and the improvements suggested in the existing pro- visions toy students of the problem. It also knew that if it deter- mines that a pension or insurance scheme is necessary in Pennsyl- vania, in order to cope with the needs of the aged, it would have to decide as to the exact plan for such a system. Shall it be a sys- tem of voluntary savings, compulsory-contributory insurance, or straight pensions by the State? If a contributory pl^n is suggested, the question is raised as to who shall contribute and What amounts? How shall it be collected? If gratuitous pensions are to be granted, how shall it be administered? At what age shall a pension be given? Of what amount shall it be? What shall be the qualifica- tions for a pension? What shall Ibe done with the disabled or injured? Will it be in harmony with existing conditions of wages and standards of living? What effect will it have upon self-depend- ence and thrift? What do the people of this Commonwealth think and desire? And finally, what is the most appropriate and most constructive form of legislation the Commission can suggest, which would insure its passage by the legislature and its approval by the great majority of the citizens of this Commonwealth? In plan- ning its work, the Commission realized that duplication of the work done by other Commissions and individuals was a great waste of time. It has, therefore, carefully examined the work already done by other State Commissions, federal departments and various stu- dents of the problem before undertaking its own investigations. It was also aware that co-operation with agencies and individuals working along the same lines was invaluable, and the Commission has everywhere sought to secure the co-operation of such groups. While the Commission fully appreciates, and does not at all mini- mize the value of public hearings in legislative matters — where rep- resentatives of various groups are given the opportunity of express- ing their ideas upon the subject, — it became convinced, after one or two such hearings, that they were of little value, unless the Com- mission is equipped with some facts and knowledge of the subject to be discussed. Most of the material, ordinarily presented at such hearings, are largely repetitions, or reiterations of opinions held by individuals, often with no facts to substantiate them. In its attempt, to comply with the spirit, as well as with the specific provisions of the resolution to the best of its ability, within the remaining period of time, the Commission deemed it necessary, in order to look into the general subject of old age pensions, to examine carefully its origin, the plans alrearly adopted by the dif- ferent foreign countries and the proposed plans of insurance or pensions. Fortunately, much of this material has been already presented and discussed by various state commissions and othfer individuals interested in the subjects. In order to ascertain the conditions and the needs of the aged in Pennsylvania, the Commis- sion found it essential to deal not only with the effects of depend- ency and aged poverty, but also to learn something of the causes underlying such dependency. To do this, it was not suflScient to 10 confine the investigations to the dependent classes alone. At the very outset, the Commission became cognant of the fact that no intelligent idea of the problem of aged dependency could be obtained without a study of those aged, who, although nominally non-depend- ent, are nevertheless, in need of, and entitled to some assistance. III. METHODS OF PROCEDURE. With the above outlined aims in mind, the Commission proceeded with its investigations in the following manner. It held personal interviews with 3,405 inmates, 50 years of age and over, in 60 alms- houses in the State. Information was collected with regard to the age of the inmates, at time of investigation, and time of admission, nativity, ^family connections, physical condition, cause of disability, occupation engaged in, weekly earnings, sources of income, means of outside support, etc. Interviews of a similar nature were also held with 2,170 inmates in 65 fraternal and benevolent homes for the aged in the State. Information, concerning identical points, of nearly 500 aged recipients of private relief was ascertained from the records of a number of charity organizations in the State. With reference to the non-dependent aged, house-to-house canvasses of sev- eral sections in Philadelphia, Pittsburgh and Reading were con- ducted by the Commission's agents. Nearly 4,500 men and women, 50 years of age and over, in these cities, were interviewed along the lines enumerated above. In order to obtain some idea as to the truth of the often repeated assertions, that most paupers are a worthless lot, and are generally recruited from the ne'er-do-well class, the Commission selected at random about 100 cases of almshouse residents and followed these up by inquiries of their former employers with reference to their general character, length of service, quality of service rendered, etc. Because of limited funds and time, the Commission was unable to look exhaustively into the general conditions of the almshouses and their management. It has, however, attempted to secure, as much knowledge as was possible under the circumstances, regard- ing the legal provisions and stata of the poorhouses and aged homes ; the relation of the State Board of Public Charities to these institu- tions; the average cost per capita per inmate in these institutions, a.nd the problem of outdoor relief. It has also succeeded in making a detailed budget study of at least one county home, regarding the farm products produced, the amounts and kinds of food consumed by the stewards and inmates respectively, and the actual per capita cost of the inmates, when all expenses were considered. The extent and nature of the existing means provided for the pro- tection against old age was ascertained by the Commission after a 11 careful examination of all the pension schemes existing in the State. These included the pension systems adopted by the various industrial concerns, railroads, municipalities, the State, the United States, fraternal organizations and trade unions. Being unable, because of the difficulties of war conditions, to secure first hand information regarding the various systems of old age pensions as established in European countries, the Commission relied for its information upon this point, mostly upon authoritative treatises of other State Commissions and individual students. An attempt was made, however, to bring the data up to date, as far as was possible. IV. OUTSTANDING PEATUEES. The Commission's investigations so far, have brought out certain points to the fore-ground which, it is to be hoped, will throw light upon the whole problem of the aged. It appears from the Commis- sion's study of the general aged population in Pennsylvania, that aside from the aged dependents found in almshouses, benevolent or fraternal homes, and those receiving public or private relief, there is a considerable proportion (43 per cent.) of the aged population, 50 years of age and over, in the State, who, when reaching old age, have no other means of support, except their own earnings. Only a small percentage (38 per cent.) of the general aged population in the State claim to possess personal property of their own. This would indicate clearly that many of these aged folks — when their power of earning is steadily declining with advancing years — will fall dependent, in many cases thru no fault of their own, either upon the State or upon private charity. The investigations also show that in most of the industries in our State, many workers be- come unfit before reaching the age of 50, with the inevitable result of steadily decreasing earnings. In certain industries, like that of the railroads, for instance, it appears that more than half of the workers become impaired before their 50th birthday. It is also shown that when the prime of life has passed, many Pennsylvanians are compelled to change their occupations, which ordinarily in- volves a decline in wages. This decline, with the majority of aged people, appears to be due entirely to sickness and enfeebled age. The increasing problem of old age stands out even more significantly, when it is remembered that while the earning powers of most wage- workers are steadily decreasing, after a certain period of age has been attained, the expenditures on food and rents, even under normal price conditions, remain the same, while that on medicine is steadily increasing. The investigations also disclose that as far as Penn- sylvania is concerned, the problem of th? support of the aged is 12 largely a native problem, rather than an imported one. The immi- grant paupers all claim to have had a long term of residence in both the United States and Pennsylvania. Regarding the aged panpers and the non-dependent aged classes, the outstanding differences lie, it would appear, in the respective family connections and physical conditions. In the almshouse pauper groiip, 40 per cent, were found to be single, 39 per cent, widowed, and only 16.9 per cent, married. Among the inmates of benevolent homes for the aged, the percentages were: 30.1 single; 58.3 widowed; and only 7.8 married. More than 65 per cent, of both of these groups had no children living, and of those that had chil- dren, more than 90 per cent, were reported unable to help support. On the other hand, among the non-dependent aged, only 5.4 per cent, were found to be single, 38.2 were widowed, while 55.1 per cent, were married and still living together. Only 10.6 per cent, of the latter group had no children living. Again, of the paupers, nearly 90 per cent, had never possessed any property, while the percentage of the propertyless among the non-dependent aged, was 62 per cent. With regard to the physical condition, it is also shown that while 64 per cent, of the aged persons residing in their own homes were still in fair or sound physical health, the percentage of those in good health in pauper institutions was 35.0, in the case of the inmates of the benevoleiit institutions, and only 12.3 per cent, in the case of the almshouse inmates. That dependency in Pennsylvania is not entirely due to the personal shortcomings of the individuals, is evidenced from the excellent recommendations given practically all the inmates of almshouses, followed up by the Commission, by their former employers. Giving due consideration to the fact that most humans will strain a point rather than give a poor recommendation, the reliable qualities of these inmates are evidenced nevertheless, from the fact that most of these inmates have served for long periods of time with one em- ployer (30 per cent, serving for more than 10 years). The Commission's investigations also disclose an exceedingly con- fusing and bewildering system of management of our county poor- houses. Not only do many of the ofladals connected with these in- stitutions, have little knowledge of the problems involved in the care of the aged, but there is obviously a laxity in the management of these institutions and the distribution of county funds. The State supervision of these aged homes is insufficient, loose and hardly competent. Careful records are kept in only few institutions. There is no uniform method of accounting. Computations of costs are made in almost as many forms and methods as the men making them. Many of the per capita costs of almshouses given in the re- ports of the Board of Public Charities do not represent the actual 13 cost. ITie latter do not include the interest upon the permanent investment and, in many cases, do not include the value of farm pro- ducts. According to the Commission's estimate from records sub- mitted by the directors of the poor to the State Board of Public Charities, the average cost per capita per inmate, in 1917, was $5.87 per week. The cost in the private institutions was even higher than that. It is also shown that in a few instances the per capita costs were more than abnormally high. From the Commission's study of the existiug means providing for the protection of the aged and superannuated, it is also apparent that they are insufficient and can never be expected to meet the situation to any extent. It is shown that of all the numerous forms of aged benefits provided, only about 10,000 aged people in the State are actually benefited. Of the numerous large industries in I'ennsylvania only about twenty make it a rule to care for their aged employees after long and faithful service. While all the large rail- roads in the State pension their faithful workers — after a long period of service — the number of railroad workers actually benefited, as compared ^^ith the total number of workers in this industry, is in- significant. It also appears that only the first and second class cities in Pennsylvania provide against the old age of their various municipal employes. The number of persons who may expect old age benefits, as such, from fraternal or trade union organizations is hardly worth considering. In the third and foui-th chapters of this report, the Commission has aimed to present in a concise and brief manner the methods advocated and adopted by various countries in dealing with the aged problem. The advantages and disadvantages, and the arguments in favor and against each particular scheme are presented, it is hoped, in an impartial fashion. It was the purpose of the Com- mission to present this solely from the student's attitude, as the Commission itself, because of the lack of time and the disputed and contradictory facts is, as yet, unable to decide upon the merits or demerits of any of the schemes presented, and as to their applica- bility in Pennsylvania. V. CONCLUDING REMAKKS. In the following report, the Commission designed to assemble cer- tain concrete facts and it is presenting them with no sense of finality. Not only does the Commission consider its investigations still in- complete, but no attempt has been made in the following pages, to exhaust the possibilities of further statistical calculations and com- binations. In presenting its findings, as embodied in this report, only the salient features of the analyzed data have been discussed. The Commission is fully aware of its shortcomings. The latter was 14 partly due to the limited funds and time at its disposal, and to the extraordinary times in which it was forced to do its work. The phases still ahead of it are too numerous to be mentioned. Because of the disputed and contradictory arguments regarding the various schemes established by foreign countries, and because during the period of war it was difiicult to secure first-hand information upon the subject, the Commission is still unable to decide upon the fav- orable points of -these various claims, or to decide upon any con- structive measure of legislation at this time. The war has proved the acid test of the soundness of many a social measure, and the Commission would, therefore, urge further study of these schemes as they have been affected and as they have survived in the countries having just finished the war. As far as conditions in Pennsylva- nia are concerned, the Commission deems it still necessary to secure more complete information, as to the nuniber of people actually in need when reaching old age. It is also important to secure an ap- proximate estimate of the sums now expended upon the dependent aged by the different public and private relief organizations. In the consideration of a contributory or nonrcontributory system of pen- sions, it is still important to secure more light regarding the exact incomes and expenditures of certain classes of wage-earners in the State. This would be possible only after complete budget studies were made of representative families in several parts of the State. Again, it may be essential to make a complete enumeration of the aged people in Pennsylvania before the best method of legislation can be proposed. The Commission, therefore, presents in this re- port the findings it has gathered, imd hopes, that whether thru itself or another body, the study of the problem wiU be further car- ried on and promoted to a successful termination. Fully conscious of its shortcomings and incompleteness, the Com- mission, nevertheless, feels most happy to state that it has tried to do the best with the limitations it had to confront. It is its most cherished hope that much of the data collected will prove of real benefit, not only to this Commonwealth, but to other states and agencies, who in common, aim to see a better and happier world to come. CHAPTER I. THE PROBLEM OF THE AC5E1) IN PENNSYLVANIA. STUDY OF THE AGED INMATES IN ALMSHOUSES AND DISCUSSION 0L< SOME RELATED PHASES. In a study of the aged population in Pennsylvania, the senile gioup residing in the almshouses and poor districts of the different counties, constitutes a large and important factor. This class of de- pendents is supported almost entirely by taxation, and as such, its consideration is of prime importance. For the purpose of studying the problem of aged dependency in Pennsylvania, it is highly essen- tial that the present social and economic status of these inmates be ascertained. This alone, however, would be of little value if no light was secured upon their previous condition and the causes that led to and underlie their dependency. There being very meager rec- ords of the inmates kept by the different almshouses, the Commission deemed it necessary — in order to obtain as complete data as pos- sible — to interview these inmates individually with reference to the desired facts. A card schedule for this purpose was devised and printed. The enormous task of interviewing the inmates in the numerous almshouses and poor districts in the State, with the limited time and money the Commission had at its disposal, could not have been com- pleted without the generous co-operation and assistance extended by the different heads of the institutions. The Commission wishes here- with, to acknowledge its gratitude to the three score or more super- intendents and stewards, who altho confronted with many difficulties ■ — that of a depleted force due to the war and the ravages of the Influenza Epidemic — have given much of their time and generous co- operation. In many instances several hundred inmates were inter- viewed for the purpose of the Commission. Of the 82 almshouses in the State, 58 have returned the schedules containing the interviews with their inmates. Only about a dozen institutions have'either not replied to our several letters or have not returned the schedules forwarded them. And only one — Berks County Almshouse — defi- nitely refused to co-operate with the Commission. As in all ovir studies, we have here dealt only with the inmates 50 years of age and over. A total of 3,405 aged inmates were interro- (15) 16 gated in 58 different almsliouses and poor districts in all parts of the State. Some of the largest institutions canvassed were: the Philadelphia Almshouse, where 744 men and women were inter- viewed ; Pittsburgh City Home, where over 300 residents were inter- viewed and Allegheny County Home, and Central Poor District of Luzerne County where 205 and 225 inmates were questioned respec- tively. In approximately a dozen other places, over 100 inmates in each were canvassed while all the inmates of the smaller places were interviewed. Practically all the schedules were filled out by the individual heads of the institutions or by competent representatives thru personal interviews. Only the inmates of the Philadelphia Alms- house and Dauphin County Almshouse were canvassed by the Com- mission's agents. A letter of inquiry addressed to the Poor Directors of a number of counties with regard to the total number of inmates in their respective almshouses, and the percentage of those who are 50 years of age and over, shows — for those who responded to our request — that 74.75 per cent, of the total number of inmates are 50 years of age and over. The percentage for the same age group in 1910, as given by the U. S. Census of Paupers, was 69.6 per cent, for Pennsylvania and 73 per cent, for the whole United States. TABLE NUMBER 1. Ages of Inmates at Time of Investigation. Acre Period. Number. Per Cent. 50 to 55 444 13.4 55 to 60 175 13.9 60 to 65 483 14.1 65 to 70 658 19.3 70 to 75 518 15.2 75 to 85 587 17.2 85 to 100 128 3.8 Not stated 112 3.1 3405 100.0 The preceding table indicates that of the 3,405 inmates investigated, 27.3 per cent, were under sixty years of age; 33.4 per cent, were between 60 and 70 and 36.2 per cent, were over 70 years of age. 17 TABLE NUMBER 2. Ages of Inmates at Time of Admission. Age Period. Number. Per Cent, Under 30 31 1.00 30 to 40 92 3.00 50 to 55 :U)5 11.52 55 to 60 453 13.35 60 to 69 535 15.60 65 to 70 553 16.30 70 to 75 388 11.44 75 to 80 253 7.46 SO to 90 1S8 5.44 90 and over 15 .44 Not Stated 185 5.45 3,391 100.00 Prom the second table it appears that only about 13 per cent, were admitted under 50 years of age; 24.87 per cent, were admitted be- tween the ages of 50 and 60 ; 31.9 per cent, between 60 and 70, while over 24.78 per cent, were admitted after they had reached their seventieth year. A comparison between our figures and those ob- tained by the Massachusetts Commission on Old Age Pensions in 1908 is of interest. In the New England State only S per cent, of those investigated entered the almshouse before the age of 60 and 92 per cent.' had passed their sixtieth year before they took up resi- dence in the almshouse. The higher rate of those entering almshouses below the sixtieth year in Pennsylvania may be explained by the highly developed industries peculiar to this Commonwealth, which, requiring greater physical stress, wear out and incapacitate men at an earlier age. For those admitted during the year 1910 to the alms- houses of the entire country, the percentages were 17.7 between 50 to 59; 18 from 60 to 69 and 15.3 per cent, over 70 years.* As would be expected, the age of admission is considerably lower tlian the age given at time of investigation. It is obvious, that the great majority of the aged inmates enter the institution late in life. This would indicate a close relationship between institutional pau- perism and old age. The combination of advanced years and infir- mity, when coiipled with the fact, that in most cases these people have no one to depend or fall back upon is — as will be seen later — IJie chief cause compelling an aged person to go to the poorhouse. •The lower percentages given by the census are due to the fact that the latter percentages were compared with the total almshouse population, while the percentages given in Table No. 2 are based on the group 50 years of ago and over. 18 Most men will stay out of an almshouse as long as they can. When tliey are compelled to take up residence there, it is usually not due to personal or other misfortunes in earlier years, but in most cases is the result of feebleness and lack of assistance from other sonrce.J. TABLE NUMBER 3. Nuinhcr of Years in 1 iixtilutioii. Number Length of Time. Investigated. ' Per Cent. Under 1 year, 626 18.40 1 year to 3 years, 1135 33.33 3 years to 5 years, 487 14.30 5 years to 10 years, 520 15.27 10 years to 15 years, 232 6.81 15 years to 20 years, 106 3.11 20 A'-ears and over, 160 4.70 Not stated, 139 4.08 3,405 100.00 The above table is noteworthy. It is clear that the almshouses are to a large extent only temporary shelter places. Nearly 52 per cent, have been in the almshouse less than three years; 29.57 per cent, have been there from 3 to 10 years, and only 14.62 per cent, lived tJiere more than 10 years. The 1910 census report of the paupers in Pennsylvania shows very similar percentages; 54.2 per cent, residing in the almshouse less than three years; 29.8 per cent, from three to ten years and 15.6 per cent, who have resided for a longer period than ten years. For the entire United States, of those investigated in 1910, 53 per cent, were in almshouses less than three years ; 28.6 per cent, resided there from three to ten years and only 17.6 per cent, were in almshouses for a longer period than 10 years. There are no figures available to show what percentage of the aged almshouse inmates in Pennsylvania are discharged for various reasons and the percentage of those that die during the same period. In the 1916 Report of the State Board of Public Charities, the per- centage of discharged persons in almshouses is given as 73.43 per cent, and the percentage of those who died as 17.47 per cent. These percentages, however, are for the entire almshouse population; and the rate of those removed by death is obviously higher for the aged population. In the entire United States during the year 1910, ac- cording to the U. S. Census Report of Paupers in Almshouses, 3 7,486 deaths occurred among paupers in poorliouses. This number amounts to a death rate of 207.7 per 1,000 of the almshouse population at the beginning of the year. The death rate in the general population of 19 the registration states in 1910, was 14.7 per 1,000. The census fig- ures for 1910 also show that in the almshouses, throughout the United States, the average length of stay in these institutions is somewhat greater for females than for males. Of the males, one-third have been in institutions less than one year; of the females one fourth. The approximate average length of stay was 4.9 years for males as compared with 6.6 lor females. This is, of course'to be ex pected. TABLE NUMBER 4. Numhci- of Admis-Hons to the Almshouses. Number Number of Times Admitted. Investigated. Per Cent. Admitted for the first time, 2,166 78.93 1 to 3 times, 377 13.74 3 to 5 times, 128 4.66 5 to 10 times, 54 1.96 10 to 15 times, 10 .36 15 to 20 times, 7 .25 20 times and over, 3 .10 2,745 100.00 The table showing the number of admissions of the canvassed in- mates gives a higher rate of single admissions in Pennsylvania than that prevalent in the whole United States. Seventy-nine per cent, of the inmates investigated by the Commission were admitted for the first time ; 13.74 per cent, had been admitted once or twice before and only 7.33 per cent, had three or more admissions to their credit. For the United States as a whole, of those in pauper houses during 1910,- 63.3 per cent, were admitted for the first time; 24.3 per cent, had from one to three previous admissions, while 12.5 per cent, were admitted three or more times. It would appear that in Pennsylvania tiie almshouses are used as mere temporary relief agencies to a lesser extent than they are in other states. This is perhaps explained by the fact that it is more difficult for aged men to find suitable work in our industries than is the case in other states. On the other hand, as was pointed out before, Pennsylvanians may be more worn out in tlieir old age than are those who are accustomed to lighter labors in their younger days. ' TABLE NUMBER 5. Sex. Number. Per Cent. Male, 2,136 62.74 Female, 1,269 37.26 3,405 100.00 20 Table number five shows the preponderance of aged males over aged females in the almshouse population. AVhile the above figures are somewhat lower than the percentages given in the 1910 Census of the I'aupers in Pennsylvania — 68.1) per cent, for males and 31.1 per cent, for females— this may be explained again by the fact that the Commission's enumeration was only of those 50 years of age and over while that of the census included all inmates. It is also interesting to remark that the above percentages found by the Commission are in exact agreement with the percentages found by the Massachusetts' Commission on Old Age Pensions in its study in 1908. The compara- tive difference between the sexes in the almshouses and that prevailing iu the entire State population is significant. According to the Thirteenth United States Census, the percentage of males in the entire State population was 51.4 per cent, and that of females 48.0 per cent. The reasons for the disproportionate number of nia]e paupers in institutions over female paupers may be explained in sev- eral ways. Children or relatives will make greater sacrifices in order to keep an old mother at home and prevent hei- going to a poorhouse, than they would for an aged father or other male relative. Aside from the sentimental reasons involved, the presence of an old woman around the home — unless she is absolutely invalided — entails little burden, as she can be made useful in numerous Avays. This, however, is not the case with an aged man. Aged women are also more gen- erously provided for by private charity than are aged men. The per- centages of aged men and women who are inmates of benevolent and private Homes for the Aged, as stated elsewhere, are 23.54 and 76.46 per cent, respectively. The relationship here is thus radically re- versed from that of the almshouse population. TABLE NUMBER 6. Conjugal Condition. Number. Per Cent. Single, 1,361 40 .05 Married, 577 1694 Widowed, 1^336 39.14 Divorced, 23 .67 Separated, 3 1q Not stated, IO5 3^10 3,405 100.00 The foregoing table, with respect to the conjugal condition of alms- house inmates, is of more than passing significance. It will be ob- served that the single and widowed, constitute nearly eighty per cent, of the total number of inmates. The marital conditions of people over forty-flve years of age in the entire State, as given in the United States Census for 1910, was for males, single 9.1 per cent.; n'arried 77.7 per cent, and widowed 12.6 per cent ; and for women the percentage for those over 4.5 years of age was, single, 10 per cent , marked 60.3 per cent, and widowed 29.2 per cent. The marital condi- tions of paupers, for the entire United States as given by the census is as follows: Single 50.2 per cent.; widowed o2.5 per cent.; mar- ried 13.7 per cent. Some light may be shed on the problem of aged pauperism, by comparing the preceding figures with those obtained from the house- to-house studies conducted by the Commission. In the latter group tiie respective percentages are: Single, 5.4 per cent.; married, 55.5 per cent., and widowed, 38.3 jier cent. These figures would seem to indicate that the prime reason why the aged poor cannot remain in their own homes, or in those of their parents or close relatives is because, as a rule, most of these institutional paupers have no one to fall back upon in their declining days. Having no children of their own, their parents dead, and in many cases, with few relatives, to be relied upon, these paupers seek the institution as the last resort for shelter and nourishment. The wide difference between the popu- ktions of single people in the almshouses and those living at hoipe, doubtless, explains why the former are inmates of pauper institu- tions and the latter are classed as "nonKlependent." It may be interesting at this point, to call attention to the differ- ent conclusions arrived at by the Massachusetts Commission with ref- eience to the same phase. In Massachusetts, the Commission found that "the average of single persons is only 15.1 per cent, among the aged poor, whereas in the general population of the State it is 55.51 per cent." Based on this, the Commission concludes: "It is evi- dent that the heavier burdens imposed by family life contribute some- tJiing towards the volume of poverty in the State." This inference if! certainly not warranted from the figures obtained by the Com- mission or from the figures of the U. S. Pauper Census of 1910. Even ip Massachusetts the percentage of widowed in the institutions in all classes averaged 52.7 per cent, as compai^ed with 6.36 per cent, in tlie general population of the State. The Commission's investiga- tions showed thruout that where theie were children or other relatives able to help, all efforts were made to assist and support tlie aged person, rather than send him or lier to the poorhouse. The small percentage of married persons in the almshouses is worthy of notice. Only 16.94 per cent, are married. The percentage of married paupers as given in the United States Pauper Census is even lower than this figure — 13.7 per cent. This is to be contrasted with 55.5 per cent, found in the house-to-house studies and 69 ])<'r cent, for those over 45 years of age in the entire State population, according to the Thirteenth IT. S. Census. While the percentage of tliis group in pauper institutions is comparatively small, it consti- tutes nevertheless, the most acute problem of institutional care. Of those having their mates living, only 9.9 per cent, were residing to- gether in the same institution; 90.1 per cent, were separated and compelled to give up home ties and life-time associations in order to avail themselves of the benefits of the poorhouse. About 5 per cent, of the mates living are confined in penal institutions or insane asylums. Thirty-two per cent, live in other poorhouses while the great majority, it appears, manage to stay with some friend or rela- tive. As this group admittedly, has a home, a system of relief which would insure the advantages of home environment over that of the institution has been generally recognized as superior and urged by students of the problem.* TABLE NUMBER 7. Nuinbcr of Children Living. Number. None 1 2 3 4 5 C 6 and over 2,319 100.00 The above table further emphasizes the isolation of the majority of the inmates who must avail themselves of the comforts of the almshouse. Sixty-three and 51 hundredths per cent of those investi- gated have no children living; 13. .5 per cent have but one child living, \^diile only 23 per cent have two or more children living. A com- parison at this point \N'ith the same aged gioup studied in the *It may not be amiss to relate at this point the following conversation taken from a letter by Mr. T. V. Powderly, in the "Report of Committee on Miners' Home and Pension," Page 24-25. It tells the stoiT of the National Soldiers' Home, located in the District of Columbia. The story follows: "One day I met an inmate of the Home and during our conversation he informed me that a feeling of discontent pervaded the whole place, that but few were satisfied. I remarked that I had heard quite a few of the inmates were crazy and he confirmed the statement. I asked how many men were in the Home. He said, 'eight hundred and seventy-eight.' My next ques- tion was, 'How many of the inmates are crazy?' His answer, solemnly stated, was, 'eight hun- dred and seventy-eight.' When I expressed surprise, he explained: 'Of course that statement of mine is an exaggeration. I don't mean to infer that every man in the Home is insane in^ the popular acceptance of that term, but they are all crazy for a sight of their old homes for the sound of loved ones' voices, for the companionship of old home friends. Our lives are lone- some to a degree. We were all strangers to each other until a short time ago, and being thrown suddenly together we cannot assimilate or form new friendships that are anything like the old ones. Some of us have wives and children back home and it is heartbreaking to be so far away from and out of sight and sound of them." Number Investigated. Per Cent. 1,477 63.51 311 13.50 177 7.70 131 5.62 95 4.12 66 2.83 26 1.11 36 1.61 ^o house-to-house canvasses is significant. In the latter group, only 10.63 per cent had no children living; 15.8 per cent had only one child, while nearly 70 per cent had two or more children alive. The data obtained with regard to the ages of the children living shows that more than 13 per cent, of them are adult, indicating that this aged group has few dependents. On the other hand, 89.93 per cent of these children are reported as unable to support their parents. The majority of these children are burdened with large families of their own. Most of them also belong to the ranks of the unskilled workers and earn wages which are hardly sufficient to maintain their own families in comfort. Only a very small percentage, namely: 4.15 per cent have children believed to be fully able to support their parents, while an additional 6.86 per cent are able to help support the parents if ready to make the required sacrifices. Only 22 out of a total of 1,179 cases investigated are reported as having children fully able to support them but who refused to do so. A similar study by the Ohio Commission on Health and Old Age Insurance, conducted at the same time, gives 7 per cent of the chil- dren fully able to support their parents, but who refuse to do so. It would seem from this, that filial duty is more generally recog- nized by the people of our own State than it is in our neighboring State. The laws of Pennsylvania obligate children to maintain their parents. The percentage, however, of those who refuse to do so, is so small as to constitute a negligible problem. Nearly 95 per cent, of the aged inmates investigated, have no other relations able to help support them. The scanty family connections of the inmates are very significant in considering the establishment of a state-wide pension system and the amounts to be allowed. The majority, having neither children nor relatives with whom they could reside, could hardly leave the institution when granted a small pen- sion. Most of the inmates would Iiave to remain in the institution unless the sum granted them would be suflicient to provide them with at least as much comfort in a private family as those obtained, in the poorhouse. TABLE NUMBER S. Nativiti/ of the Almshouse Iiniuites TuvcKtiffated. Place of Birth. Number. Per Cent. Pennsylvania 1,267 44.00 United States, 366 12.71 Foreign, 1,247 43.29 2880 100.00 In 1910, according to the United States Census, the total native born in Pennsylvania was 6,028,994 or 81.2 per cent, and the total 24 foreign born was 1,442,374, or IS.S per cent. In 1900 tke percentages were S4.4 per cent, and 15.6 per cent, respectively. This gives an in- crease of 3.2 per cent, in the foreign born in the State during the ten year period. It is evident from the above table that the percentage of paupers who are of foreign birth is much higher than tlie per- centage of foreign born in the general population. The former group constitutes 44 per cent, of the total number in almshouses or mo.'e than double the percentage of foreigners in the entire State popu- lation. The percentage of foreign born in almshouses in 1910 for the entire United States was 39.3 per cent., while the percentage of foreign born in the same year in the population of the country was 14.7. What has been said in the preceding pages about the family connections of the almshouse inmates generally, is even more aggra- vated in the case of foreign born, who in many instances leave all their family ties behind them. Of the native born, only a small percentage, 12.71, were born in other states. Forty-four per cent, were born in I'ennsylvania. Al- though the percentage of paupers born in other states is somewhat greater than the percentage of those born in other states in the entire population — OO.G per cent, for those born in Pennsylvania and only 9.4 per cent., of those born in other states in the population of 1910 — it is nevertheless true that the great bulk of aged pauperism in this State is home grown rather than imported. TABLE NUMBER 9. Couidry of Birtli of the Foreign Bom. Number Country. Investigated. Per Cent. Ireland, 462 38.79 Germany, 250 20.99 England, 114 9.57 Austria, 110 9.23 Wales, 51 4.28 Poland, 49 4.11 Scotland, 38 3.19 Italy, 25 2.09 Xorway and Sweden, /20 1.68 Kussia, 18 1.51 France, 17 1.43 Switzerland, 11 1.00 Other nations, 26 2.13 Total, 1,191 100.00 Of the 1,191 foreign paupers, from whom the country of birth was ascertained, 38.70 per cent, claimed Ireland as the country of their 25 birth. Germany was the fatherland of 20.99 per cent. England and Austria were the native lands of 9.57 per cent, and 9.23 per cent., re- spectively. Wales, Scotland and Poland contributed each less than 5 per cent., while Prance, Italy, Eussia, Norway and Switzerland added each less than 2 per cent. The ranking of the foreign born in the State at large in 1910 wa^' as follows: Austrians, 17.5 per cent., Eussians 16.7 per cent., Ger- mans and Italians each 13.6 per cent., while Ireland ranked fifth with 11.5 per cent. It is of interest to note that while Austria leads the foreign born in the entire State population it is the fourth on the list of those contributing aged paupers ; and Eussia, the second in the g€;neral foreign born population, contributes less than 2 per cent, to the pauper institutions. On the other hand, Ireland, ranking fiftli in the entire foreign born population in the State, contributes more than four times the number furnished by the highest ranking for- eign group, and more than twenty times the foreign group ranking second in the general population. Germany ranking third in the foreign born population of the entire State, ranks second in the num- ber of paupers contributed, while Italy, with a ratio similar to that of Germany in the entire State population, conlributes only 2 per cent, to the pauper population. The strikingly high percentage of foreign born paupers furnished by Ireland and Germany, as compared with those immigrants who come fiom the east and south of Europe, is significant. It can only be explained by the fact that the immigration from the latter countries is of comparatively recent date. Most immigrants come here in their prime of life; and it would appear that for a time they are able to work arid remain away from the poorhouses. Another factor may perhaps be found in the language difficulties encountered by the foreigners from the East and South Enropean countries. Able to converse only in their native tongues, these immigrants make greater efforts to remain away from public poorhouses, where the only language spoken is foreign to them. It is also a fact that the earlier classes of immigrants have come here to stay, Avliile many of the more recent types of immigrants return to their native lands when approaching old age. The fact, moreover, that most of these inmates come from the lowest ranks of labor, and that the Irish and Ger- mans have admittedly, a comparatively higher standard of living, would indicate a lesser ability in this group to save and provide for old age. The percentage of naturalized voters among the foreign born in almshouses is 70.3 per cent. The percentage of voters in this group is much higher than among the foreign born in the general popula- tion of the State. Only 33.6 per cent, are naturalized in the latter group. 2G TABLE ]S UMBER 10. Length of Time in the United States. Number Number of Years. Investigated. Per Cent. Less than 10 years, 22 2.00 10 to 20 years, 51 4:.62 20 to 30 years, 177 16-03 30 years and over, 854 77.35 l"^ 100.00 Only 2 per cent, of the foreign born answering this question were here less than 10 years ; nearly 5 per cent, were in the United States from 10 to 20 years ; 16.03 per cent, resided here from 20 to 30 years and 77.35 per cent, lived in this country 30 years and more. For the eutire United States pauper population of 1910, the percentages were ae follows: Less than 10 years in the United States, 3.5; ten to 10 years, 0.04; twenty years and over, 79.9 per cent. These figures further bear out the fact that recent immigrants do not contribute any considerable number of candidates to the aged almshouse poi)ulation. TABLE NUMBER 11. Length of Residence in Pennsylvania. Number of Years. Number. Per Cent. Less than 5 years, 16 1.52 5 to 10 years, 41 3.90 10 to 20 Tears, 88 8.36 20 to 30 years, 155 14.73 30 years and over, 752 71.49 1,052 100.00 Of the aged inmates who were born either in foreign countries or in other States of the Union, only about 5.5 per cent, were residing in Pennsylvania less than 10 years. Twenty-three per cent, were resi- dents of the State from 10 to 30 years, while 71 per cent, lived here SO years and more. TABLE NUMBER 12. Physical Condition of the Aged Inmates. Condition. Number. Per Cent. Sound or fair health, 436 12.80 Bad or poor health, 985 28.92 Crippled, maimed or deformed, .... 450 13.21 27 Defective in sight or hearing, 316 9.30 Feeble-minded, ?QS 9.04 Eheumatic, 247 7.25 Chronic sickness, 131 3.85 Kidney Trouble, 15 .44 Tuberculosis, 26 .76 Epileptic, 117 3.43 Dropsy, 10 .30 Not stated, 364 10.70 3,405 100.00 One would naturally expect to find a great number of the aged in almshouses to possess some sort of physical defect. Of the 3,405 cases investigated, only 12.80 per cent, are reported as being in good or fair health. Of those reported in bad or poor physical condition 28.92 per cent, were in a general state of poor health; 13.21 were crippled, maimed or deformed; 9.04 per cent, were feeble-minded; 0.3 per cent, were defective in sight or hearing; 7.25 per cent, were rheumatic; quite a number were epileptic and a number were suf- fering from various diseases. Of the total number investigated only 5 per cent, were reported as able bodied ; 40 per cent, were partially disabled, while 55 per cent, were totally incapacitated. For the same age group in the house-to-house studies, 04. 3 per cent, are re- ported in good or fair health, and only 35 per cent, are in poor health. In the total i>auper population of the United States in 1910, the percentage of able-bodied was 20.64 per cent. The leading defects for the United States as a whole are given as follows: Old and infirm, 32.08 p6r cent. ; feeble-minded, 24.68 per cent. ; crippled, maimed or deformed, 25.64 per cent., with small percentages due to various other causes. The foregoing may be indicative of the pre- vailing physical defects of the aged inmates. A study of 22 typical infirmaries by the Ohio Commission showed that out of the 2,260 cases investigated, 830 or 36.46 per cent, were old and infirm; 305 or 13.4 per cent, were defective mentally and 1,125 or 49.77 per cent, sufi'ered from disease or physical defects. These figures, secured in the same year, show great similarity to ours, and from the view point of establishing a pension for all, it is evident that the small percentage of able-bodied in this group of dependents would not take away a great number of these inmates from the institutions. The causes of disability are given m the fol- lowing table: 28 TABLE NUMBER 13. Causes of DisuhHitj). Cause. Number. Sickness, 627 Old age, 603 Accident, 230 Loss of limb or organ, 76 Feeblemindedness, 1J^6 Paralysis, 53 Alcohol, 81 Per Cent. 34.5 33.4 12.7 4.2 7.7 3.0 4.5 1,810 100.00 The preceding table brings out what has been pointed out many times before i. e., that sickness is the chief factor in poverty and pauperism. Although 33.4 per cent, are reported as incapacitated directly because of old age it is probable that many of these became old prematurely due to sickness. The small percentage attributed to alcohol is significant when it is taken into consideration that in a few instances, the superintendents in filling out the schedules added intemperance as a cause in cases of accident or loss of limb. TABLE NUMBER I4. Causes of Disability According to the Occupations Inmates Were Engaged in. Kind of Occupation. CAUSE Sickness. Old Age. Accident. Alcohol. No. Per cent. No. Per cent. No. Per cent. No. Per cent. 64 53.28 27 25.23 17 15.88 fi 5.61 25 48.07 17 32.69 7 13.49 3 4.78 6 26.08 16 69.57 1 4.35 888 44.95 262 34.84 104 13.83 48 6.38 87 58.78 40 27.02 12 8.12 » 6.08 76 55.06 2.S 16.07 28 20.28 n 7.97 55 48.24 23 20.18 29 25.44 7 6.14 Total. Building trades Steel industry, : Railroad workers, Outdoor and casual occupa- tions, Indoor and sedentary trades, _ Skilled trades, Miners, 107 752 148 The preceding table may shed some light upon the aged problem as affected by the particular Pennsylvania industries. The out- standing facts here are: (1) with the exception of those engaged on railroads, sickness— and not the industrial occupation directly— is the leading factor in incapacity. Only on railroad work does accident figure as the leading cause of incapacity. This is not onlv the case with the pauper group but holds true of the nondependent 29 group as well, as is shown in another part of this report. Sickness also ranks highest among indoor occupations as a cause of inca- pacity. Disability through old age follows next as a cause in this class of occupations. The latter cause also ranks highest among outdoor occupations and lowest among miners and various skilled trades. This is to be expected, as there are more men engaged in unskilled and casual occupations at a late period in life, than there are in any other group. The low rate of disability due to old age, attributed to skilled mechanics and miners may be explained by the fact that with the development of modern machine processes, men are scrapped much earlier in life and aged men are generally undesirable in the skilled trades. Miners, on the other hand, age prematurely, and in both occupations the accident rate runs high — 25.44 per cent, for miners and 20.28 per cent, for skilled groups. Old age is not given as a cause of disability among railroad workers, doubtless, because of the disproportionate accident rate prevalent in that industry. Alcohol as a factor of disability is highest for skilled and sedentary trades, with casual occupations coming next, while railroad workers give the lowest rate. TABLE NUMBER 15. Previous Occupations and Occupations Before Admission. Previous Number Per Last Oc- Per Occupations. Investigated Cent. cupation. Cent. Skilled and semi-skilled, 485 19.10 348 17.94 Common and unskilled,. 1197 46.97 924 47.66 Domestic service, 110 4.32 113 5.82 Housewife, 583 22.93 451 23.26 Farmers, 82 3.30 51 2.62 Miners, 45 1.77 25 1.30 Professional, 14 .55 .. Clerical, 26 1.06 27 1.40 2,542 100.00 1,939 100.00 It is evident, from the foregoing table, that there was little change in the nature of occupations the inmates were engaged in during their earlier years and those followed immediately preceding admission to the almshouse. Most of the inmates have been engaged iu the same occupation all their lives. While the kinds of occupa- tions given include almost every pursuit in life — professions not excluded the great bulk is recruited from the ranks of the unskilled and common labor groups. More than 47 per cent, come from this Housekeeping and domestic service rank second with 27 per cent., followed by skilled aud semi-skilled trades with 19.10 per cent. Other occupations yield but small percentages. 30 In the pauper population of the United States in 1910, the com- mon and unskilled laboring groups furnished about 36 per cent. Farmers, planters, and dairy farmers constituted 12.1 per cent of the entire United States pauper population, but constitute less than 2 per cent in Pennsylvania. The different skilled trades also con- tribute considerable numbers to the entire United States pauper population. TABLE NUMBER 16. Weekly Wages Earned Earlier in Life and Immediately Preceding Admission. Amount Earned per Week. Earlier in lite. Per cent. Immediately preceding admission. Per cent. 113 95 200 411 170 191 70 7 1 8.93 7.65 15.82 33. 5S 13.44 15.11 6.53 .65 .65 100 103 200 306 99 110 49 11 2 10.20 $ 3 to $ 5, 10.50 $ 5 to $ 8, - ; 20.42 $ 8 to $12 - 31.15 $12 to $15, $15 to $20, $20 to $30, $30 to $40, 10.10 11.23 6.08 1.12 .20 1,264 lOO.OO 979 lOO.OO The outstanding difl'erences in the wages earned by the canvassed inmates in their earlier ages and that earned before admission is tliat while .32.30 per cent, earned less than |8.00 per week in their earlier years, a greater number or 11.12 per cent, were earning the same sum prior to their admission. On the other hand, while 61.07 per cent, were earning between .$8.00 and .1i;20.00 per week in their younger days, only .52.48 per cent, were earning the same amount at the time of admission. This would prove that the earning power of these inmates was gradually declining, due either to old age or similar causes. The small wages earned by the majority of the inmates also seem to shoAv that many of these aged folk could not earn a sufficient sum to maintain themselves in comfort. Of those who reported their last earnings before admission, 72.27 per cent, were earning less than .«12.00 per week; 21.33 per cent, earned be- tween |12.00 and .'?20.00 per week and only G.4 per cent, were mak- ing $20. 00 or more a week. REPORT U\ - OF THE PENNSYLVANIA COMMISSION ON OLD AGE PENSIONS MARCH, 1919 'N HARRISBURG, PENNA.: J. L. L. KtTHN, pi^IflTBE TO THB CX)MMONWBALTH. 1919 .nt. (2) 31 TABLE NUMBER 17. Cause of Loss of Earning Foiver. Number Cause. Investigated. Per Cent Sickness, 1,151 63.70 Old age, 385 21.31 Accident, 174 9.63 Husband's death, 21 1.16 Intemperance, 76 4.20 1,807 100.00 The causes attributed to the decrease in earning power were given as follows: 63.7 per cent claimed sickness as a cause; 21.31 per cent, attributed their loss of earning power to old age; accidents were the cause of 9.63 per cent. ; 4.20 per cent, was attributed to in- temperance; and 1.16 per cent., in the case of women, lost all support by the death of their husbands. Of more than 2,000 inmates questioned, as to their property hold- ings, 191 or 9.5 per cent, claimed to have had property above debts. More than 90 per cent, never possessed any property of their own. At the time of investigation less than 1 per cent, were receiving in- comes from property holdings or savings. The losses sustained by those who previously owned property, were attributed to sickness by 35.5 per cent. ; to need of immediate support by 34 per cent. ; to fraud by 9 per cent. ; to business failures and fire losses 14 per cent., and 3 per cent, lost property through bank failures, while a similar number lost their property through intemperance. Ninety-eight per cent, of those investigated had no source of income available at the time of investigation. CHARACTER OF ALMSHOUSE PAUPERS. "The records of the inmates are very imperfect from the fact that the inmates are so feeble-minded and infirm that the majority do not know their ages or their previous occupations. They are all natives of Pennsylvania, and all single or widowed, with the exception of one who is here because of desertion by her husband. None have any means of income, but one gets a soldier's pension. Two inmates have two brothers who have some property and, no doubt, would take them in their homes, if they were not feeble-minded. The class of people in the almshouse are those who can't keep themselves and would not know what to do with money if they had some." "The dependents in almshouses are of such a character that it seems to me it is a waste of time as to their past life. Most of them were nothing but parasites in society all their days, not one worthy of an old age pension, if it could be had. They are mentally and morally degenerates ; most of them foreign born, and half of them never naturalized. Tramps in summer and here in winter. The only record that could be had would be unreliable, for there is no way to obtain it but from them. Hence, we go into few details when they are admitted. The. average life of an inmate has been a failure, lyrgely due to the fact that they never realized what a successful life is." The above typical expressions of sentiment come from two secre- taries of the Poor Directors, in different parts of the State. From the preceding discussions something of the truth with reference to the statements of the nativity and naturalization of the inmates has been learned. It is obvious from this that a better understanding of the character of these inmates is not only essential when contem- plating the establishment of a pension system for the aged, but is equally as necessary in order to comprehend the pauper problem as a whole. Assuming that the sentiments expressed in the last letter, are based upon facts, it would seem that the proper places for such people are the jails and workhouses rather than the almshouses. "Mental and moral degenerates" have no place in homes, presumably, for the relief of the worthy poor and inflrm. If this is not the case it shows a fundamental laxity in the management of some of these homes. The connection of a person holding such views with an almshouse is dangerous and detrimental to the morale of the home and the welfare of the inmates. Such a person cannot be expected, but to look upon the inmates as wretched ingrates who must be treated like criminals, with the hope of reforming them — if not for this world, then for the next one. A home under such a person is little short of a jail. The Commission considered this question of the character of the inmates of serious and vital importance. To undertake however, a following up of these inmates in their former localities and to ascertain their general characters from friends and relatives, was pro- hibitive with the limited time and money at the Commission's dis- posal. However, in order to obtain some light upon this point, a question with reference to the name and place of the last employer, and year when employed was inserted in the almshouse schedule. Because of the difficulty of finding the record of employes in many industries — where men are generally known by check number— the number that could be followed up, and from whom returns could be secured simmered down to somewhat more than 100. The cases followed up were selected at random from the residents of about thirty different alm.«liouses and represent workers of varied occupa- tions. 33 The letter addressed to the former employers requested informa- tion with regard to the length of time in employ, the quality of service rendered, the general character of the employe, and the reason for leaving employment. Twenty per cent, of the answers received with regard to the time of employment stated that the men in question had worked less than six months; 21.5 per cent, were employed from six months to three years ; 29 per cent, served from three to ten years, Avhile 30 per cent. were engaged for ten years or more continuously. As to the quality of service rendered, only 4.5 per cent, reported of bad service; 80 per cent, reported that the services were either satis- factory or good, while 15 per cent, reported of excellent service. As to the general character of the employes, only 5.9 per cent, claimed that these former workers were drunkards or lazy; nearly 95 per cent, reported of good, honest and faithful characters. The above is substantiated by the reasons given by the former employers for leaving their employment. Forty per cent, quit work because of sickness ; fifteen per cent, because of old age ; twenty-two per cent, either because the work was completed or the shop was shut down, while 20 per cent, gave no reason for leaving service and only 1.6 per cent, were discharged from their employment. Some of the recommendations given these inmates are most inter- esting. The following few are typical ones: "He had charge of our tool room and stock rooms and was one of the best men in this position we ever had. (H. B. Underwood & Co.)." "We always considered him a good and reliable workman. (Pitts- burgh Spring & Steel Co.)." "Steady, industrious, reliable workman. (Pressed Steel Car Com- pany)." "Our superintendent reports Mr. W. as of excellent character, honest, and did his work most satisfactorily. (Dorhan's Monitor Carpet Mills)." "A good steady man and a good mechanic. (Pennsylvania Iron Works)." "This man was only disciplined three times during his 48 years of service with the Pennsylvania Railroad." "Faithful employe while working in this colliery. (R. & R. C. & L. Co.)." "He worked for me off and on as general utility man around the house and I always found him very willing and a good worker." "He is a good printer and I never knew a more kind hearted and generous man." "As far as we can judge from business connections with him, he is honest and deserving." 34 "L. W. was one of the best and most reliable men that worked for me. An A number one man." The following include all the recommendations given, illustrating the opposite type of inmate : "He owes my mother five meals and one night's lodging, to this date." "Down and out on account of drink." "He would absent himself at times for several weeks while on drinking bout." "His father was foreman in the shop until his death. His son was never dependable on account of drink." "Was a good teamster and good to his horses. One thing I am sorrj' to say, his money was all spent for booze." MOVEMENT OP ALMSHOUSE POPULATION. The ratio of almshouse paupers per 100,000 population in the United States, according to the 1910 tJensus, has declined steadily since 1880. In that year there were 132 paupers in almshouses to every 100,000 population. It fell to 116.6 in 1890 ; 101.4 in 1904 and 91.5 in 1910, The ratio of the growth of the pauper population between 1904 and 11)10 was one-fourth as great as that of the total population. In I'ennsylvania there were 9,054 paupers in almshouses in 1904, con- stituting 133.2 per 100,000 population. In 1910 the total pauper population was 9,606 or 123.5 per 100,000 population. Thus, while the total population between the two periods increased 12.8 per cent., the almshouse population increased 6.1 per cent, or less than half.* The number admitted during the year 1904 to the Pennsylvania almshouses was 9,738 or 143.8 per 100,000 population. In 1910, 9,467 or 123.5 per 100,000 population were admitted. During the latter year there were 271 or 2.8 per cent, fewer admissions than in the former year. The latest report of the Board of Public Charities for the year 1916 gives the total adult inmates on January 1, 1916, as 17,237. This was 182 less than the number on the same day the year before. During the year 1916 there were admitted to these institutions 25,,- 543 adults. In the same year there were discharged, for various: reasons, 25,482 leaving in the institution on December 31, 1916, a total of 17,278. This was 61 more than there were on the first of the year, but 33 or .02 per cent, less than the number at the end of the previous year. From the reports, submitted by 73 almshouses •It is pprhaps Important to warn in this connpction against the' conclusion that this decline is due to a decrease In poverty, or to the increased well being of the population as a whole. It is, undoubtedly, larpoly the result of the chanees made since 1880 in the methods of dealing with the poor. Not only has there been more -adequate legislation governing the administration and admissions to almshouses — wliich previously served as the place of refuge for all classes of un- fortunates — but in addition, recent years have witnessed a tremendous development in all kinds of homes and asylums of fraternal and beneflrial organizations. The latter bave kept manv people at home, who would have otherwise, been inmates of almshouses. Private organized charity has also 4one ipqch to prevent the poor from going to pauper houses. 35 to the Board of Public Charities for the year 1917, which were ex- amined by the Commission, the total average population during that year was 16,716. The floating nature of the almshouse population is significant. The number admitted during a year is ordinarily much higher than the number in the institutions at a certain time. And the number discharged during a year equals the number admitted during the same year, and at times even exceeds that number. The permanent population is usually a little more than either of those admitted or discharged during the year. The floating population is composed largely of the ne'er-do-well group. This class usually leaves the institutions during thVsummer months, when they are able to secure casual employment. They return to the almshouses when winter comes, after they have nothing left. Tt is evident that the alms- house is not the proper place for these misfits of society. In most cases these men are able-bodied and capable of Avork. The almshouse with no means of employment, only encourages them to further idle- ness. The 1916 Eeport of the Board of Public Charities attributes the discharge of the adults during that year to the following causes : Dismissed, 18,612 73.03 Died, 4,611 18.10 Eloped, 1,824 7.16 Removed, 410 1.61 Deported, 25 .10 Total, 2.VS2 100.00 STATUS OF COUNTY ALINISHOUSES. The 67 counties in Pennsylvania are divided into over 100 poor districts. There is no systematic arrangement of poor districts. It may constitute a whole county, parts of two counties, a city, a bor- ough, a township, a group of townships or a borough and a town- ship. There are 82 regular almshouses in the State. Forty-five of these are county institutions and 37 are local poorhouse districts. In addition, there are a number of small houses which are used by the individual boroughs or the township poor districts for the tempo- rary accommodation of the poor, and the granting of partial support. The following counties have no almshouse or poorhouse: Cameron, Fulton, Juniata, Pike, Snyder, Sullivan, Union and Wyoming. The location of many almshouses are in remote and inaccessible parts of the existing poor districts. No general revision of the Pennsylvania laws relating to the poor has taken place since 1S36. The chaotic and conglomerate legal con- 36 fusion may be evinced from the fact that at the present time there are over eleven hundred Acts of Assembly relating to the poor. Eight hundred of these are local and special laws. "There is no uniformity in the laws relating to the appointment or election of Poor Directors who may serve as such ; the proper and uniform title of such officials; types of approved plans for almshouses; manage- ment and accounting ; taxation for support ; inspection ; segregation of sexes and classes of inmates ; admissions and discharges and pay- ments for support."* The reponsibilities and appointments of the poor authorities are regulated by the various Acts of Assembly. These are shaped and guided largely by the demands of the particular localities at the particular time. Some of these acts designate the county commis- sioners, while others place the management of all affairs relating to the poor in boards called "Directors of the Poor." In the smaller districts the poor are taken care of by "Overseers of the Poor." These officers are empowered to provide lands and buildings adequate for the care of the poor of the district and also to care for them by housing them, or in dispensing outdoor relief. The compensation of the different poor directors is regulated by law from time to time and is usually graded in accordance with the population of the particular district. The directors are elected for four years. There is neither a uniform regulation of admission to almshouses nor conditions of legal settlement in the Poor districts. Admissions, at present, are placed in the hands of the Court, Justices of the Peace, Magistrates, Directors of the Poor and other authorities. An act x>assed in 1913 provides "that the real estate of any pauper shall be liable to the expenses of his support, maintenance, and burial, incurred by any poor district, whether owned at the time such ex- penses were incurred or acquired thereafter." ** The State Dependents Commission concludes in its report that "the vital thing to be secured, is the welfare of the dependent. Every social institution, should submit to the most exacting publicity. So- ciety has a right to know, not merely how its money is spent but how its dependents are actually cared for. No properly conducted charity resents expert advice or friendly criticism. Those that do should l>e watched and supervised by proper and competent authority."*** It is probably with this idea in view that there was created in Pennsylvania as early as 1S69 the State Board of Public Charities. This body consists of five commissioners appointed by the Governor "who together with the General Agent and Secretary shall constitute a Board of Public Charities." "The commissioners," it is provided, *Report of the State Dependents Commission of 1915, page 14. •^Pennsylvania Ivaws, 1913, pag:e 564. ***Report of State Dependents Commission, page 20. 37 "shall receive no compensation for their services but their actual tiaveling and necessary expenses. This Board is to meet at least once in every three months." The duties and powers of the General Agent and Secretary of the Board of Public Charities as amended in the Act of 1913 read as follows : "SECTION 4. The General Agent and Secretary of the Board of Public Charities shall hold his office for three years, unless sooner removed ; he shall be a member of the board ex-offlcio ; and it shall be his duty to cause a correct record of its proceedings to be kept, oversee and conduct its outdoor business, visit all charitable, penal, reformatory, and correctional institutions in the State at least once in each year, except as hereinafter provided, and as much oftener as the board may direct; he shall prepare a series of interrogatories, with the necessary accomijanying blanks to the several institutions of charity, reform and correction in the State and to those having charge of the poor in the several counties thereof, or any subdivision of the same, with a view to illustrate in his annual report the causes and best treatment of pauperism and crime, and shall have free access to all reports and returns now required by law to be made; and he may also propose, for the approval of the board, such general investi- gations as he may think best. He shall be paid annually the sum of five thousand dollars (5,000), and his additional traveling ex- penses. "SECTION 5. The said commissioners shall have full power, either by themselves or the general agents, at all times to look into and examine the condition of all charitaMe, reformatory, or correc- tional institutions within the State, f.nancially and otherwise; to in- quire and examine into their methods of instruction, the government and management of their inmates, the official conduct of trustees, di- rectors, and other officers and employes of the sam,e; the condition of the buildings, grounds, and other property connected therewith, and into all other matters pertaining to their usefulness and good man- agement ; and for those purposes they shall have free access to tlie grotmds, buildings, and all books and papers relating to said insti- tution ; and all persons now or hereafter connected with the same are hereby directed and required to give sucli information, and afford such facilities for inspection, as the said commissioners may require; and any neglect or refusal on the part of any offlcer or person con- nected with such institution to comply with any of the requirements of this act shall subject the offender to a penalty of one hundred dollars f|l 00.00), to be sued for and collected bv the geneml agent in the name of the board. The commissioners shall also have power to employ such experts, clerks, stenographers, and other employes of all kinds as the business of the Board of Public Charities and that of XI, „ r<^TviTni++oo nn T,nTiiicv Tnflv renuire. 38 "Whenever, upon the examination of any jail, prison, penitentiary, or almshouse, any condition shall be found to exist therein which, in the opinion of said commissioners, is unlawful or detrimental to the proper maintenance, discipline, and hygienic condition of such institution, or to the proper care, maintenance, and custody of the inmates therein the said commissioners shall have power to make such recommendation to the warden, inspectors, trustees, sheriff, commissioners, overseers of the poor, or other officer or officers charged hy law with the government of such institution, as said com- missioners may deem necessary and proper to correct the said ob- jectionable condition ; and in case of the neglect, failure, or refusal of such officer or officers to comply with such recommendation, or in case of his or their failure to make such attempt to comply there- with as shall be satisfactory to the said commissioners, within ninety days from the date of service of said recommendation upon them, the said commissioners shall certify the fact in the case, together with their recommendation, to the district attorney of the proper county, whose duty it shall be thereupon to proceed, by indictment or other- wise, to remedj' the said objectionable condition. "SECTIOX 6. The said commissioners, by themselves or their general agents, are hereby authorized and required, at least once in each year, to visit all the charitable and correctional institutions of the State receiving State aid, and ascertain whether the moneys ap- propriated for their aid are or have been economically and judiciously expended ; whether tlie object of the several institutions is accom- plished ; whether the laws in relation to them are fully complied with ; v.hether all ])arts of the State are equally benefited by them, and the various other matters referred to in the fifth section of this act ; and in their annual report to the Legislature, to embody the result of their investigations, together with such other information and recom- mendations as they may deem proper. "SECTIOX 7. The said board shall also require their agent, at least once in every two yeiirs, to visit and examine into the condition of each of the city and county jails or prisons and almshouses or poor houses, and shall i.ossess all the power relative thereto, men- tioned in the fifth section of this act,, and shall report to the legis- lature the result of the examination, in connection with the annual T-(p)rt autliorized liy tliis act. "SECTION 8. It sliall be the duty of all persons having charge or oversight over the poor in any city or county of this State, or in any subdivision thereof, and all persons having charge or control of county jails or prisons or workhouses, and all other persons having charge or control over any other charitable, reformatory, or correctional in- stitution, not now by law required to make an annual report of the condition of the same, io make report annually to the said commis- 39 sioners, at such time, upon such form, and in such manner, as they may prescribe, of such fact and statements concerning the same as they may require; and all charitable, reformatory, and correctional institutions now required by law to make annual reports shall here- after make and transmit the same to said commissioners, on or be- fore the first day of September in each year; and all such institu- tions now receiving or that may hereafter desire to receive State aid shall annually give notice to said commissioners, on or before the first day in September in each year, of the amount of any appli- cation for State aid which they may propose to make and of the several purposes to which such aid, if granted, is to be applied. Any neglect or refusal on the part of any person having charge or con- trol over any jail, prison, workhouse, or charitable, reformatory or correctional institution, to make the report required by this act, or otherwise required by law, shall subject the offender to a penalty of one hundred dollars ($100.00), to be sued for and collected by the General Agent in the name of the board. "The commissioners may prescribe to all institutions receiving State aid a method of keeping their books ; and the commissioners shall make no recommendation for the allowance of State aid to any such institution which shall not adopt said system. "SECTION 9. Whenever any such institution shall thus give notice of asking for State aid, the commissioners shall inquire care- fully into the grounds of such request, the purpose or purposes for which the aid is asked, the amount which will be required, and into any matters connected therewith and in the annual report the result of such inquiries shall be given, together with the opinions and con- clusions of the board thereon. "SECTION 12. The Board of Public Charities shall annually pre- pare and print, for the use of the legislature, a full and complete re- port of all their doings during the year preceding, stating fully in detail all expenses incurred, all officers and agents employed, with a report of the general agent and secretary, embracing all the respective proceedings and expenses during the year, and showing the actual conditions of all charitable and correctional institutions within the State, with such suggestions as the board may deem necessary and pertinent ; and the said general agent and secretary is hereby author- ized to prepare the necessary blanks and forward the same, in good season, to all institutions from whom information or returns may be needed, and to require a prompt return of the same, with the blanks properly filled." WESTMORELAND COUNTY HO]\rE TNVESTIOATION. A perusal of this act would seem to give the Board of Public Charities full and drastic powers of supervision over all public in- 4U stitutions. In view of this, the investigation of the Westmoreland County Home, conducted by the Board's agents in February, 1917, is significant, either as it illustrates the laxity of our laws or as it sheds light upon the whole problem and management of our insti- tutions for the poor. The substance is taken from local newspaper accounts as reported during the time of investigation. The agents conducting the investigation having referred to these newspaper ac- counts, they may be presumed to be authoritative. The investigation of the following charges was conducted by two assistant agents of the Board of Public Charities. The accusations against the superintendent were that (1) "He seemed to take sides with the employes and tried to keep up strife among them." (2) That "he was simply not fit to handle the job." (3) "That immorality ex- isted between the superintendent and female employes and male and female employes of the County Home." The President of the Poor Board admitted that he had smelled liquor on the breath of employes but added that "no action other than speaking to them about it had been taken." Charges were also made that a Director of the Poor had granted orders for outdoor relief to three different persons, which later, it was claimed, went for wearing apparel for another woman in the case. The orders inchided items such as, silk hose, corsets, ladies' I'.ats, ribbons and night shirts. "The 'whiskey bills' presented, showed tliat nineteen and one-half gallons of the 'fire-water' were delivered to the County Home between January 25, 1916, and January 22, 1917." When the physician at the County Home was asked "what quantity of whiskey he prescribed for patients during the year," he replied, "Not over a gallon in twelve months." When the Director of the Poor was asked about the outdoor re- lief bills for personal wearing apparel, and whether he had not in- vestigated to see if the goods went to the right party, he replied "I did not think it was my business to investigate." The duties of the superintendent were defined by the Directors of the Poor, at the hearing, as "his duty to superintend the building." The climax of this investigation is reported as follows in the Greensburg Morning Review of February 27, 1917: "Resumption of the hearing yesterday morning brought a storm of debate and heated argument between H. H. Fisher, attorney for R. D. Wolflf, (member of the Poor Board) M. N. McGeary, attorney for the Poor Board and Mr. Theurer and Mr. Gill, the agents, when Mr. Gill resumed examination of Mr. Wolflf, who was on the witness stand when the hearing ad- journed Friday evening. Mr. Gill started the argument by inquiring of Mr. Wolflf: "Did you make any inquiry into the copies of vouchers handed yoii Friday?" 41 "Mr. Fisher was on his feet at once and made the following state- ment in which he questioned the authority of the assistant agents to conduct the investigation. "This witness has been advised by his counsel to refuse to answer this question for the following reasons : "First — This investigation or so called investigation is not being conducted by the Board of Commissioners of Public Charities or a majority of said Board, but is being conducted by Wm. G. Theurer and S. E. Gill, Assistant General Agents who have no legal authority to conduct this, investigation. In this connection counsel for wit- ness and other parties in interest now move the Board of Commis- sioners of Public Charities to eliminate and strike from the record all of the testimony or so-called testimony, which has been taken be- fore and by the said Assistant General Agents. "Second — Under the provisions of both the Federal and State Con- stitution this witness cannot be compelled to give evidence against himself. "Third — The proceedings heretofore taken and now proposed to be taken in this matter by the said Assistant General Agents are irregu- lar, illegal and void, inasmuch as they have been taken, and are now proposed to be taken before the Assistant General Agents aforesaid who have no authority or jurisdiction under any law of this Common- wealth to conduct such an investigation. "Mr. Gill refused to recognize counsel and read to Mr. Wolff part of the law which he said gave the agents power to conduct the investi- gation. Mr. Fisher and Mr. McGeary argued the matter with the two agents. Mr. Wolff upon advice of counsel refused to answer the questions when asked by Mr. Gill. The agents then, apparently, dropped the matter and requested Mr. Wolff's minute book. They asked him about certain minutes of a meeting of January 26, 1916. Mr. Fisher again interrupted and advised Mr. Wolff not to answer. The agent again explained to Mr. Fisher and Mr. McGeary that the hearing was not a court trial and therefore counsel would not be recognized. Both refused to waive 'their rights' and when asked to leave the room refused to do so. Mr. Theurer called Dan Dun- mire, a local detective, who had been guarding the door during the hearing to eject the attorney. Mr. Fisher warned the agents and detective that if hands were laid on him that he would construe it as 'assault and battery.' After more arguments on both sides, Mr. Gill interrupted with a question to Wolff as to whether he declined to answer all questions. Mr. Wolff said that upon the advise of counsel he did. Mr. Gill said 'You are excused.' As Mr. Wolff started to leave Mr. Fisher also arose and stated that 'since my client is ex- cused in courtesy I will leave.' Mr. McGeary who stated that he represented many of the witnesses was going to remain in the room, 42 but he was excused by the agents and went out. Neither Mr. Fisher nor Mr. McGeary again appeared in the room during the hearing of the witnesses. "Mr. Gill stated to a Review reporter that he thought no further action would be taken by the agents to compel Mr. Wolff to appear before the commission. 'He refused to answer questions,' said Mr. Gill 'and this we will report to the Board of Public Charities.' " The Board of Public Charities having made public no report since that time, it is not known what actions were taken in this matter. GENERAL CONDITIONS OF COUNTY POORHOUSES. It is to be greatly regretted that the Commission was unable, in tlie short time at its disposal, to make personal visits to the different almshouses and learn more about the general qualifications and com- petence of the stewards and superintendents of these institutions. The tasks of these heads are not light. As one expressed it "These positions do not pay much for a person M^ho must be a farmer, doctor, book-keeper and almost any other occupation known to mankind." It was impossible to secure complete information as to the conditions, or to assimilate the spirit prevailing in these homes, where many, "whose spirits having oozed out from their bodies under the foot of life," are compelled to spend the rest of their lives. It is hardly necessary to point out that it is of paramount importance to know not only how the tax-payers' money is spent, but it is equally essential to know accurately of the treatment accorded, the food furnished, the medical care and sanitation established, the conditions of the build- ings, the degree of congestion, the recreational or occupational facili- ties afforded, the character of the inmates and the general environ- ment of the homes. The heads of the county almshouses, are as a rule, political ap- pointees. The great majority of them have had no experience of this nature, previous to their appointments. There can be no question that many of them have been successful farmers. But knowledge of the proper care of a farm is hardly sufficient to qualify one also to take care of and promote the general welfare of those entrusted to them and who look to them for some measure of happiness. Many of the men connected with the management of the almshouses are prejudiced and often without the rudiments of an education. Where the superintendents are highly educated men, and trained — of whom there are only a few— they are as a rule powerless, and have no au- thority to make improvements without the consent of the poor board 01' the county commissioners. The three or four institutions visited by the Commission's agents, were found to be kept in exceedingly good condition. But those visited cannot be taken as truly representing the general conditions 43 of most of the almshouses in the State. It is, of course, inevitable that where old persons congregate — many of whom suffer from foul smelling disordeis — there should always i>revail a very noticeable bad odor. In the few institutions investigated, the buildings were kept clean, with more light and air in each room, than is usually found in middle-class city homes. The inmates looked neatly dressed. The bedrooms were neatly arranged and well ventilated, wliiJe the bed covers were uniformly clean. These were kept so by the inmates themselves. The inmates were given three meals a day. The big meal usually consisting of one dish made up of a medley of edible foods, bread and coffee, with an additional vegetable on occasions. The dis- cipline was of such character as is only essential in institutions. But even in these progressive institutions there was no genuine homelike spirit. Most of the inmates looked sullen and wore a depressed and downcast mien. Practically all were eager to get out of the place. Even in the best equipped institutions there were no recreational facilities provided for these inmates. Except for a pack of cards, a game of checkers and a few old magazines, there was nothing these aged could do to keep their minds occupied and to prevent their nursing of grievances and discontent. This feeling of depression is augmented by the fact that in most homes no attempt is made to segregate the old people, — who have been compelled to go to the almshouse through no fault of their own, — from the feeble-minded, and in some cases even the partially insane. In many places they are compelled to eat at the same tables and sleep in the same dormi- tories with the latter groups. The inmates in most almshouses are a very heterogeneous collection. They comprise insane, feeble-minded persons and epileptics ; blind and deaf mutes ; sufferers from chronic diseases, persons with criminal records; prostitutes; mothers of illegitimate children, orphans, and deserted children. "Many of the poorhouse inmates," writes a very intelligent miner from western Pennsylvania, "physically broken, spiritually crushed, and in some instances mentally wrecked, poorly paid mechanics in their day, would have been heartened could they have foreseen the beacon of a pension on retirement, and it would have been an inspi- ration to save, if only a little from their meagre wages." It is, of course, natural that the average citizen when the question of a state wide pension system is suggested should inquire as to how much more in taxes it will mean for him. It is astonishing, however, to find that the same citizen never takes the time to inquire either as to how much he is spending on the poor at the present time, or as to the quality of services rendered for the expenditures. Certainly, no private business man would permit his money to be spent without an accurate account of all the expenditures made; and no efflcient busi- ness man would continue to contribute money without ever inquiring into the results and the efficiency of the business, and whether more efficient methods might not be introduced which would reduce the present cost. What is so obviously plain to the business man is as yet, apparently, a sealed book to the taxpayers in this State. It was seen from the law creating the Board of Public Charities that it is the only State body having jurisdiction over the almshouses. It has the right to compell "all persons having charge or oversight over the poor in any city or county of this State, or in any subdivision thereof to make an annual report at such time, upon such form and in such manner, of such facts and statements as they may pre- scribe and require." This would appear to give the Board of Public Charities ample power to secure the most accurate accounts of all the incomes and expenditures made by the Directors of the Poor and stewards, and superintendents of the different almshouses. This, however, is far from being the case. One looks in vain for such detailed accounts. Not only is there no uniform system of account- ing and bookkeeping for all the different poor boards' and superin- tendents' records — which has been a universal practice in all our neighboring States for many years — but even the computations of ccsts are made in haphazard fashion, in accordance with the desires and best interests of the individuals responsible for the expenditures. As is expressed by the Secretary of one Poor Board, "We are, of course, interested in presenting as low a rate as possible to the tax- payers." Accordingly, each poor board fixes and computes its per capita cost per day or per week, which it submits to the Board of Public Charities, so as to meet its own needs and interests. Because of this, it is found that in determining the total amount of the alms- house expense, some will include also the expenditures made upon "buildings and improvements" and "other extraordinary expenses." Others will not figure this at all in the total costs ; while still others will deduct from the total expenses, the income received from those inmates, who having some means, are made to pay for their keep. Some few consider the value of the farm products in the total ex- penses but the great majority do not. 45 40 a. IS I- e o 03 -si o =1. Kl >^ — V K| S to ia ^ <=> lO ^ to ^ ^ S^ •-^ g cq t-. e so s 5 cc •sainjipnsaxa ajBSajSSy •jsnai joop^no Md 1800 £[}[93dl 9SBJ3AV •saeuadxa ssnoqsniiB ib^oj, •JOqB[ pnS 83SBU 'IB^OJ, •ojoq nSisjoj ■njoq 8AI1BJJ a 003 OOl t— CO I— I rH tS U5 t- >* lO a> pi CO Qi Oi rp M £-- M c; -^ co^^ "* I 01 O "*WeOC*iNMc«MC«&3 2E38S 8fegS8SS5;2SSg._„, t-u3oi»o m* ■* ^ o «Do4 t- 00a - M lO Q^ ■* 6 l> 1-1 -^H l-H (N Jh C4 M rH I— I C« ■* W OCO 00 gjftCOC* t;- b- f-t rH ITS t- -^ LA n la li 01 O t- ootoeico->*Mpoir3? ^S o S ^ -w. _ "^ ^ .2 O aj M «! ^r -TJ XJ H w 3 ^ O) O d 03 ? O . -SO cTSfJ en ^ bo lll-^^llliillill||||5 "&&ggg^"al^aa.«°5^'^§°;i aJ^Sja-"-"*' S S (m "w no ^5 O £i^ O^ O S 3 „'aMgg§>SS.>3SSi;a5£»-c5-g3g SSB; ga°«a a6.|6 ,5|aL 0000 ! cj t^ QQ 46 ■BO.in:Hpujilxo 3;i!So,iS3\- ■faipi loopjno J8lJ JSOD (t[3iaa« 33BI8AV •sasnailxD asnoqstntB imoj, 'S3I.IBIB3 no soan^ipusdxa 1-i to ■re^ox ■nioq u3i3io,a; "ojoq. 9ai:;b^ p o o SSSSSlSSSSSgg ?§S"^£;SS??SSS°'g|3 = D p> -31 ■«* ca CO « s (N ro 01 1— 1 ©1 o 5 "* I— i-H Os &5 c ■1 «P Od eo iS f-^rH 1(5 t--*M-*OjCO i-hQ sgssssss r-i tCMc4 eoeo w W-^tfcao-^-^rtirSeooiMt-oCKNi-icocQio ■«* (Bi-f-rtfiot^mOi-ic-iiOtor-iacoc^ioo 2 i-( "* ,tiS=;p = g'g'3uo^p^.S3aSMCB9PP-e'K'C :3-Ea oSE3^^BaBaaBa«'Sp>.""Sooog feg 0)., ■a-s 'D'O a a a a aa J3.P II 47 see s^isssasss sssgagfi 9ia OQ -^ CO ■«< o ^ OLOD m-^n iBaniSi-it-MO gsssg © "^ cc ^ «■*««!-( aoboi So M ■* i-t Th i-i CO "^ S5 lAso-^wflowt- rH tH eO •* ©« "*2S oTcO oT 04 «C4 M fc "* ® co«>^^-««o ■I ■«* lO C« IQ 0» li o so Tfi ocflOSSt-t-cn himSSw 5S oj CO 85 OS lO «b cocJiAoOiH eo & =ss sg^ssie'-"' ""igggs (i< I O ! o I ' d IS ■a t, II w " (-1 ills a ° 73 rt ^ '^ III! {S 09 O a? 5« rt O IH O) o as - -aoSsa •3 -^ ' eo a) ■** to Tj . .'& 3 9 2 •u » 2 " a ™ M " § n2 o ^ a «i nr = M S'Sw . ,o^ a 3 §-w o 3 -»■ 0) O) QJ oSSxJ-a ^.H 1.3 ^^ "S «> aJ„ SfS52fl" ^^S>^fe333a'g«2H3iSi, SS-wsaCD'a'o'aiaigEm sSe =3'aiijaa2222i2oSo'*.?*o jg^P'3 o aa a a^a-'^>i>.t>te.S ffi « f !>• 09 cd 'O'O CO DO S5 P o aa S3 i§ Si* o o 00 tfi la as 48 The foregoing table shows the main expenditures of the various almshouses as given in the 1916 Annual Report of the Board of Public Charities. It includes the total number of inmates, the total alms- house expense, the average weekly cost per capita, the money spent on outdoof relief and the aggregate expenditures of the poor dis- tricts. It will be seen that the costs per week as given in thia report vary from forty-nine cents per capita per week in one county, to $6.51 per week in another. When an attempt is made to check up the given weekly costs, by dividing the submitted total almshouse ex- pense by the given number of inmates, the results cannot be made to agree. Following this method of computation, the weekly per capita costs were found by the Commission, to run as high at |9, ,|12, and almost $15 per week in a few cases. This is not only true of the figures as given in the 1916 report, but the submitted figures in the 1915 report, do not balance similarly. The Commission does not question the integrity of the given figures. It wishes, however, to point out the confusion and chaos encountered when any intelligent point of information is desired to be ascertained. The figures submit- ted, no doubt, are based upon actual facts, but they are computed in helter-skelter fashion as suited best the individuals who made out these reports. No attempt was made by the Board of Public Char- ities to ascertain or explain these multifarious methods of computa- tion; and the reports were published as they were submitted. It is surprising, that although these reports have been before the public for a number of years, no one in the State, as far as the Commission is aware, either challenged or discovered these so obviously misin- formed facts. To obtain its data, the Board of Public Charities submits the fol- lowing form to the different almshouses. This is filled out and re- turned to the Board, from which in turn, the latter makes out its report. ANNUAL FINANCIAL REPORT. • • • Almshouse, County. ALMSHOUSE EXPENSES. Salaries, wages, and labor (including medical attention), Provisions and supplies, Fuel and light, Clothing (including shoes) , Furniture and bedding and other dry goods, Medicine and medical supplies, Ordinary repairs, Traveling expenses, 49 Farm expenses, Incidental expenses, Total current expenses, Building and improvements, Other extraordinary expenses, Total almshouse expenses, OUTSIDE expenses; Outdoor relief, Insane in State or other hospitals, Children in homes and private families, Feeble-minded in training schools, Support of poor in other institutions, Other outside expenses, Aggregate expenditures, Eeceipts other than from taxes, Receipts from taxes, Total receipts, Average daily number supported during year, Average cost per day for maintaining dependents, LIABILITIES. Salaries unpaid, Miscellaneous bills unpaid, (estimate), Other indebtedness, Total liabilities, •Number of day's support given inmates, including vagrants during year, I hereby certify that the above report is correct. Name OfiSce, PO., County, *To obtain this information get the sum of the number of days in which all the inmates were supported. For instance, if there were 3 prisoners, 1 supported during the entire year, or 365 days, 1 for three months, or 91 days, and 1 for one week, or 7 days, the total would be the sum of 365, 91 and 7, or 463 days. In examining the returned reports, for the year 1917, the Commis- sion found it so perplexing that it could make little progress. Only twenty-six of the seventy-three reports submitted for the year 1917 could in any way be made to check. When further inquiry was made of a number of superintendents as to their methods of computation, 50 ouly about 50 per cent, responded. Of all the replies received, each one Iiad his own method showing how the per capita cost per week was obtained. One steward after explaining his method of compu- tation added: "You will note that on the form furnished, by the lioard of Public Charities, there is no space for setting said items apart to show intelligently what the real indoor county home ex- penses were, hence this confusion." One of the reports submitted to the Board of Public Charities states : "On or about November the 3rd, 1917, J. K. S. who has been Overseer of our Poor District for many years past, died very sud- denly. His successor, J. K., has not been able to find any record showing what expenditures made by J. K. S. were for almshouse and what for outside relief. J. K. S. had charge of all almshouse ex- penditures so that at the present time, it is absolutely impossible to determine accurately how his total expenditures should be divided between almshouse and outside relief. It. is an absolute impossi- bility to accurately divide the expenditures between these two ac- counts." This was signed by the new Overseer of the Poor. Table No. 19 is the result of the Commission's attempt to classify, from the submitted reports for the year 1917, the incurred expendi- tures according to the amounts spent directly on the maintenance of the inmates ; that expended on salaries, wages and general overhead expenses ; the money laid out on additional supplies and building im- provements, and for farm expenses. 51 '-I o o 4i a % o •[Biio; pat3ia •saup -nns pas pEsqisAQ •aouBns^aiBin :jo3ji0 -IPP" PUB ssiiMnS 5 t~ in 064 Ji s ■miBj no sasaadxa •amoDni lu^oi 3t~inoor;')'^d3(5imeofi -00G5'Mooo)u30jeD*i: m -^ 0» ■* -* c- o -* 00 a CO TtH't-Tifs i-i oT cs o«s - E? i-l "«< t- E; O^Os LACa dCA U rnSiNM St»c5rooll-iSTtiOMr-(OlA ^ t- B OSrH 00 Nt-_CTHc>eioaoe)Oi~®i-itc t CO CO MiH«0Or b >.e4ooc H^a eO«COiOiO-o -j d « 1° 9 jesi^S' S9S -ssssg: rPC4 M W i-H 0> ■O CO O d S O „ Q> t Q, Si §3 "" P P ^4 -to " ,5 03 o S 3 oa.Sj3So.a o iiobo oO ^ n a p o T3 oa S ^ rj ^j t-i ^< ^ass (h M u o) O o3 si, 0) 01 5 m w 2 ni M CO — ■" islli^s III n >0 j|||llllllflli^°ll i^ii S^Ai-Sbs- o 3 3 a §55123 2 3 Sva-C so 52 •[1350? pUBjr) -nns poB puaqjsAO 'dDa^nd^ni^in 'iOBiiQ -!PPB pnB ssiiddng S s O 05 g El •aiiBj uo sssnsdxa eniODii! iBjoj, toeou5usrHSt'SwrH»6OTio&<3i6om»n&ecoo«i«5eoo->»icji--iSoc« o>(>-OtHiHc«(Nojio50ou5t-Qo®oi5t-OJ030iTtH iSoSo-wiiOT-i-SioSS ■^0»C00St>t>iH«b-gO I-HIO i-TiHUieiJ rH -"jTrHoT CO rH iH « i> lO -*" iH O feS8gS3ggf:!8gg§SSgl2!Sggfeg32SS888SS dJ us i-T t> t-^ b^ M M 1> fc c 5i-irHOSr-iaiW5Wl?JOe H CO oT-* «D«0 r-T"* i-Tw OJ-^OOOlOO C3 i t- CO c4 CO ro i-HO t- oS t- -W -^ CO l05«»rHOrH«S §ss5!as3$5sgeeggs8ggagf2gE3sg8aBa-gsss §gSSSgg||feSggfeS8ggfcgg^ggl88SSgi izi s s ^ g 8 8 s" as s if s gg gg-g '>"a ^ ^ g ^"""s" ss 3 s^'ss :2i ^ I Ir ^ "^- s c y +^ 03 A3 _ o I D _-a •Q *J3 Pi P saP a £ ^oTSS^ Signs « a> ia . i^°=a sS °* g.liilii^piiiilllili ';=Sd 53333 t,7,'^r';(ai0.9Sg"^'S^^.£.SSi533S S •a^^d g g S g S S-S § s .1 a^'^ I g s a a g a6saoso 03 o eo lo o "W e« ta ts M Qi go so o OS « -^J* 1-1 l-t i-H ■*© t-Ca rH SO CO lO ^■*OM&5 i-*So8 W H rH t-5o-* i ArHfiO et Ob Cb M i-t QD ■<)< 62 CO -^ o ^ « ei c gli NOOffl'tttr- 3S?2S3 ?2gS?3SgggS M O C30) Ob- £4 !3S3S8 SSE3SSS8ggg o>© o Cb O Ol QO bii KK la 13 is i ^9 fc« go 35£ s a a g g >.t,B 3 3 3 ^4^ cd cEj eS 03 { 2 "l a> lU * in £ ^S^" 3S8S3gg33.£:Sgi CD tH t> i/S O; ■* rH U M©MeO«U5MCOiOiHC04i«vOCO&3'*CO''!ffTjC^JtTj( SSSlggSSSgfc sSScoSii-iaioi Sfli- ^Meooj bij-^CTjeo bou3Mxt> gcHCi(MOO'*CCM>®i-He}.feoOOCOt-fi30-*i-';S|'; OO&rH Cnm rH i-H r-(i?* bflt-O & -?t< u5 i-- CO- 'SS^S tD©oomoDcoooD OSCO^e-]CCOOi3lOO-^ijrit-"*^Ot»lftCOr-"Q5iOrHOOeiiOSOoe4COWC4 n o -OUQ c P-ut-o-t?*; 3 2 a S S o 9 o o ag , .,_ .Og«.o,o-Dg00„0«^g'-' :ll|p£S.s5SS|plll| 111 ^i ^6e586(56sl - ™ O) 3 ' 'I' 2 S ■= a c « o s 55 3S5 OOOOr HC4 lOo* irt ■* « ■5= t-o t-o O |25 K ^o-* io*i©i-iiO ■Ts M 55 O) -gi c _ JSS ■iS^^g^ assscss-astessstessg-a-a-a-assf '-''--1(5 OCiOO '■'O "^ ^ izilzitzilz; 55 S lO cS U3 o Oi i-i 'SJbc* ODofc-SaOOTOO "SjJM '5 S) S)c^ S«0©Ol>-*b-SS 'faJb'S t- K t> «5 o 5 3M" Qi -o.£.£.£;.^«o^ = s M bo bl) Ml M C- "-I ^ O O O O ^sss^ 0SMOe«M0*Q0M'«*'Tt(b-i-Ht-e0O(MC0aii-iO0;OTtit- o a o m 2 3 « hl'^ O t-, as 5 <-H +J -p -w 4J -tS S fc^^o o o op *?'-' a o o g oo a g a a g -550 H a a a n J ca 83 03 rf 03 1-1 S M S 5 S3 s , ° S -a to H ag 3 ■a' .9 a 2 ; ».SaSo3o3«B)eo £ S^^ OS 03 03 « a Ba-gix ogs- «6S S|g' O t 0!.„ a P^ j: CS 03 «> ai ; a oS « a'f, 3 ■S'^Dcotsi i»7i CO 5 5" ^ ^ ■» a i1 tn EJ m ^1^5 o>-aSa •^ a Om oj oj EiS a a f.^ i§ ^ S « Eil .n g aJ "' >> u — S§So -ao!i|^-iSSa^„ g fcgS^^ S S a.S.2.S.S go6 a S a g SS o.SS£!*5.o.axiJ3p„ aana 6igaaaalass§§°||55S5 g||t§et;i;&a3S5ssagg'SS §°£ooooojij5j:fji:o'3Saaap aSaiZi|zigi!z;|Ziil4FLi(ijPHfM^a!*a!»coM S St: agS CO-- O >j o a":«^w .pO.o o o < O g * * CS o O B cq ■sasnadxa jaqio Iiv S S 'laipj joopjno ■nois -[Ajp aidcais iq pnnoj •O •ort each inmate in an almshouse, would only be possible after a system of evaluation of all farm products consumed, was established. It may be safely assumed that ^\hen these are added to the present ]f the Board and County Controller afterwards. The steward also, v.ould, at times, pay bills in cash and be reimbursed later by the Board. DETAILED BUDGET STUDY OF BERKS COUNTY ALMSHOUSE. It was beyond the Commission's resources to attempt complete budget studies of county almshouses with regard to the farm products I)rodiiced, consumed in the institutions, and that sold outside. Such studies would, of course, be invaluable as shedding light upon the efficiency of the management of the institution, and the actual cost per inmate. The Commission has succeeded, however, in making such a complete study in at least one institution, the findings of which are submitteS herewith: 62 In the 1917 Financial Report of Berlis County, published by the County Controller, it is stated that the Berlcs County almshouse is located "three miles southwest of Reading, Pa. The farm con- sists of 514 acres. Thirty-five acres of this is in meadow land, 4 acres in truck, 100 acres in woodland. The balance is under culti- vation for general farming. Value of Farm, |200,000 Value of buildings, 250,000 ''The daily average of inmates supported in the institution for the year 1917 was 313. The total almshouse expense for the year was 150,555.19. The average weekly per capita cost is given as |3.50.* The Report also states that "In computing the average weekly cost per capita, every item of expense that enters into the- maintenance of the inmates is included, food, clothing, bedding and furnishings, medical services, drugs, light and heat, salaries of officials and at- tendants, tobacco and postage stamps." The Report then gives the following farm and dairy products: FAR3I CROPS. "The farm crops were exceptionally good all through, the soil responding bountifully to the efforts of cultivation. The corn yielded what is generally termed a 'bumper crop.' The amount of each crop follows : Hay, 130 tons ; wheat, 2,000 bushels ; oats, 2,100 bush- els; corn, 3,600 bushels (shelled); potatoes, 1,600 bushels; rye, 177 bushels." TRUCE. "The truck garden produced the following: Parsnips, 20 bushels; peas, 14 bushels; tomatoes, 71 bushels; cucumbers, 798 dozens; radishes, 11 bushels ; beans, 76 bushels ; lettuce, 28 bushels ; cabbage, 4,213 heads; celery, 2,275 stalks; endive, 300 stalks; onions, 53 bushels; carrots, 19 bushels; gooseberries, 5 bushels; grapes, 35 bushels; strawberries, 115 boxes; turnips, 6 bushels; potatoes, 14 bushels; peppers, 6 bushels; lima beans, 5 bushels; eggplants, 123; redbeets, 36 bushels; currants, 150 quarts; pumpkins, 135; SAveet corn, 3,865 ears; sauerkraut, 30 barrels; pears, 22 bushels." THE DAIRY. "The dairy consists of 36 cows, and produced as follows: 64,860 quarts or 16,21.") gallons of milk. A proportionate amount of this milk is used fresh daily for the different hospital waids and also for cooking and baking purposes. The balance is turned into butter, of which 4,270 pounds was produced, and oil con.sumed at the institu- tion in its various departments." *It Is interesting to note that on Table No. 19 the weekly per capita cost is given as $3.94, while diTlding the total almshouse expense by the average number of Inmates |rlves only $3.09 as 63 BUTCHER SHOP. "Slaughtered 85 head of cattle, which yielded 54,594 pounds of beef, 2,964 pounds of tallow and 7,342 pounds of hides. Killed 16 calves, produced 1,285 pounds of veal. Killed 58 head of pigs, which netted 12,073 pounds pork and 1,710 pounds lard. The total amount of meat produced of all kinds was 67,952 pounds. These meats were all used at the institution. "Boiled 432 barrels of soft soap and 2,180 pounds hard soap." THE BAKERY. "There were baked and consumed during the y«ar 86,328 pounds or over 43 tons of bread. This product is baked fresh daily in two- pound loaves and amounted to a total of 43,104 such loaves." POULTRY. "The hennery consists of 525 barnyard fowls and produced 1,412 dozen eggs for the season." LIVE STOCK. "The live stock of the farm at present consists of 14 head of mules, 1 horse, 36 dairy cows, 2 stock bulls, 36 steers, 156 pigs of all sizes, 7 heifers and 525 chickens." It Avill be observed that of the 4,270 pounds of butter produced and of the total of 67,952 pounds of meat of all kinds produced, the report states that these were "all consumed at the institution." With this in mind it is very significant to note that in the steward's report to the County Commissioners, which was examined by the Commission, it is reported that the total amount of beef (of all kinds) consumed was 55,469 pounds, leaving 12,483 pounds of beef unaccounted for; 86,328 pounds of bread was baked, but the steward's report states that only 80,288 pounds were consumed, leaving 6,040 pounds unaccounted for. Of the 1,412 dozens of eggs produced, only 1,313 are accounted for by the steward ; 4,270 pounds of butter was produced according to the County Commissioners' Keport. The steward's report shows that only 3,327 pounds was consumed, leaving 943 pounds not accounted for. The following table also is interesting as it throws light upon another phase of institutional management in a ninnber of county poorhouses. The number of inmates, it will be noticed, was almost ten tiroes the number at the steward's table. 64 TABLE NUMBER 20. Kind and Amount of Food Consumed at Berks County Home Betiveen January 1, and December SO, 1917. Kind ol Pood. On inmateB' table ol 318. Amount per person. Stewards' table of 32. AmouDt DOT person. Apricots, lbs., Beans, lbs., Beel, lbs. (aU kinds), Bread, lbs., Butter, lbs.. Cbeese, lbs.. Chicken, lbs.. Chocolate, lbs., Cocoa, lbs., Coffee, lbs., Essence of coffee, lbs.. Corn flakes, lbs., Corn starch, lbs., Cream of wheat, lbs., .. Doughnuts, Eggs, doz., Farine, lbs., Fish, lbs., Flour, lbs., Fruit pudding, lbs., Jelly, gal., Lard, lbs., 48 18 106 !,704 690 72 78 92 ,200 774 Liver pudding, lbs., Milk, qts., Molasses, qts., i Mother's Oats, lbs., Oat meal, lbs., Onions, pks., Peaches, lbs., Pepper, lbs. Pork, lbs. (all kinds). Peas, lbs., Prunes, lbs., Potatoes, bus. , Rice, lbs., Raisins, lbs., Sugar, lbs., Shredded wheat, Salt, lbs., Tapioca, lbs., Tea, lbs., Vinegar, gal. , Veal, lbs., 034 127 720 2.9 132 250 7.5 .15 8.7 2.2 .23 .25 .29 3.8 2.4 .22 3.78 7 .03E .6 1.7 .039 23 4.8 .Oi .6 .035 43 .096 26.5 7.9 l.S 2.7 6.8 8,736 2,100 934 633 309 117 66.5 80.75 19.8 10 75 534 2.8 16.7 539 138 2,121 16.7 4.8 66.2 495 35 15.6 1.2 22.4 .09 6.2 .013 1.1 .42 2.3 91 8 •791 209 165 180 16 16 1,236 2.0S .26 21.6 6.6 6.1 6.7 .48 .6 32.6 S5 1.8 446 14.6 The above table is illuminating from the standpoint of the quality and quantity of the food consumed on the respective tables of the inmates and stewards. It is shown throughout that the coarser foods are consumed by the inmates, while the better kinds, are used by the stewards. This is significant when it is remembered that many of the aged folk are continuously sick and need more of the better foodstuffs. In an attempt to arrive at the actual per capita cost per inmate, the Commission secured an estimate of the prices prevailing, during the year 1917, on the following articles consumed in the almshouse. These prices are estimates made by reputable produce merchants located in the vicinity of the almshouse and represent the lowest prices of the articles during that year. The amount and value of each product is given below: •Sausage. 65 l«»"s 76 bushels $1.00 per $ 76.00 Bread, 86,328 pounds .04 per 3,453.12 S*?!' 54,594 pounds .22 per 12,010.68 ^u™'"! 4,270 pounds .40 per 1,708.00 Cucumbers 798 dozen .10 per 79.80 f^Biibage, 4,213 heads .2i per 105.33 Celery 2,275 stalks .03 per 68.25 Carrots 19 bushels .50 per 9.50 Currants 150 quarts .10 per 15.00 Eii^^e, 300 stalks .03 per 9.00 Eggplants ^ 123 plants .03 per 3.69 Eggs, 1,412 dozen .35 per 494.20 Gooseberries 5 bushels 1.50 per 7.50 Grapes, 35 bushels 1.00 per 35.00 Hides 7,342 pounds .20 per 1,468.40 Hard soap 2,180 pounds .08 per 174.40 -Lettuce, 28 bushels 1.00 per 28.00 Lima beans, 5 bushels 9.00 per 45.00 Lard 1,710 pounds .28 per 478.80 Onions 53 bushels 1.50 per 79.50 Potatoes, 1,600 bushels 1.50 per 2,400.00 Parsnips, 20 bushels .75 per 15.00 Peppers, 6 bushels 1.00 per 6.00 Pumpkins 135 .05 per 6.35 Pears 22 bushels 1.00 per 22.00 Poi'k 12,073 pounds .18 per 2,173.14 Peas, 14 bushels 1.00 per 14.00 Rye., 177 bushels 1.50 per 264.50 Radishes, / 11 bushels 1.00 per 11.00 Redbeets, 36 bushels 1.00 per 36.00 Soft soap 432 barrels 1.50 per 648.00 Strawberries, 115 boxes .10 per 11.50 Sauerkraut 30 barrels 13.00 per 390.00 Sweet corn, 3,865 ears .25 doz. 80.50 Tomatoes, 74 bushels 1.00 per 74.00 Turnips, 6 bushels .75 per 4.50 Tallow 2,964 pounds .15 per 444.60 Veal 1,285 pounds .18 per 231.30 Wheat 2,000 bushels 2.20 per 4,400.00 Total value of products $31,581.56* The articles sold and amounts received according to the County Commissioners' Eeport were as follows: Wheat, $4,133.68; corn fod- der, 110.00; hides, |1,549.09; tallow, |3o4.71; corn, |24.52; hay, $10.00; oats, |94.27; potatoes, |883.00; miscellaneous receipts, $222.51. The total receipts from farm products amounted to 17,049.27, leaving the value of consumed products to $24,532.29. Five per cent, for interest and depreciation on the permanent investment of $450,000 gives $22,500. Adding the grand total of $50,555.49 total almshouse expense as given in the Commissioners" Eeport to the total of $24,532.29 tor consumed products, together v/ith' the $22,500 on interest and depreciation, the grand total almshouse expense amounts to $97,587.78. When this grand total is divided by the 313 inmates, the total cost per capita is raised from $3.50 per week, as stated by the County Commissioners, to $6.00 per week or nearly double the per capita cost stated in the Countv Commissioners' Eeport. •This total does not include the valne of the hay, oats and com, as these were, doubtless, con- sumed by the farm stock. 66 STUDY OF INMATES IN FEATEENAL AND BENEVOLENT HOMES FOE THE AGED. Information concerning the aged group residing in private and benevolent homes foV the aged, was obtained through the cordial co-operation of the superintendents and heads of these institutions. The inmates in 65 of these homes were interrogated personally, with reference to the desired data, from a printed card-schedule devised for that purpose. Tliese interviews were in practically all cases conducted by the heads*'o||the institutions themselves. A total of 2,158 aged inmates were thus questioned. The ages of the inmates as found at the time of investigation follow : TABLE NUMBER 21. Ages of Institutional Inmates at Time of Investigation. Number Age. Investigated. Per Cent. 50 to 55, 28 1.29 55 to 60, 36 1.66 60 to 65, 92 4.26 65 to 70, 326 15.10 70 to 75, 549 25.44 75 to 85, 911 42.21 85 to 100, 190 8.86 Over 100, 1 .04 Not stated, 25 1.14 2,158 100.00 ■ It will be observed that only 2.95 per cent, are under 60 years of age in this group as compared with 27.3 per cent, in the case of the almshouse inmates; 19.36 per cent, are from 60 to 70 years of age, while 67.65 per cent, are between the ages of 70 to 85. The late period in life at which these inmates enter the institution is further borne out by the fact that only 1 per cent, were admitted before the age of 50 ; 5 per cent, entered the institutions at the ages of 50 to 60; 41.8 between 60 and 70, and a similar percentage were admitted to these institutions after they had reached their 70th year. In the Massachusetts study of 1908, parallel percentages are given. One per cent, were admitted before the age of 50 ; 4.4 per cent, between 50 and 60 ; 41.7 per cent, between the ages of 60 and 70, while 58.8 per cent, were admitted after they had passed their seventieth year. The strikingly higher age of entrance into the institution for this group when compared with the almshouse group, is significant. The lower percentage of those entering the institutions, over 70 years of age in Pennsylvania, as compared with that given in Massachusetts, is prob- ably again the result of the more strenuous industrial life led in our own State. istigated. Per Cent. 181 8.40 674 31.23 366 16.96 -m 24.46 9.73 105 4.86 50 2.32 44 2.04 67 TABLE NUAtBER 22. Numl)er of Years of Residence in the Institution. Number Time in Institution. Invi Under 1 year, 1 year to 3 years, 3 years to 5 years, 5 years to 10 years, 10 years to 15 years, 15 years to 20 years, / 20 years and over, Not stated 2,158 100.00 The above table would indicate a longer span of life for the in- laates of private and benevolent homes for the aged, than for alms house paupers. Although the ages at admission are much higher for the former inmates, their period of stay in the institution is considerably longer. The percentages are for those in residence less than 1 year, 8.4 and 18.4 per cent, respectively. While about the same percentage in both groups were in the institutions from 1 to 5 years, the percentage of those residing in the institutions 5 years and more was 35 per cent, in the case of almshouse inmates and 43.4 among the inmates of the benevolent homes. Other reasons for the longer stay of the inmates in the latter homes, may perhaps be found in the facts that practically all benevolent institutions charge a con- siderable fee at admission. The accommodations offered by these homes are often more satisfactory than are those offered by the county poorhouses. That aged women remain longer in institutions than aged men has already been pointed out. TABLE NUMBER 23. Number Sex. Investigated. Per Cent. Male, 508 23.54 Female, 1,650 76.46 2,158 100.00 The reverse sex preponderance in this class of inmates over that in the county almshouses has been alluded to once before. The percentages of men and women among the aged inmates of benevolent homes in Massachusetts in 1908 were 30.6 per cent, and 69.4 per cent, respectively This would indicate that aged women are 68 more generally provided for by private charity than are aged men. It may also show that aged women are either more thrifty than are aged men or that they are more readily helped by friends. TABLE NUMBER 24- Conjugal Number Condition. Investigated Per Cent. Single, 650 30.12 Married, 170 7.88 Widowed, 1,258 58.30 Divorced, 11 .50 Not stated, 69 3.20 2,158 100.00 Although the percentage of single people among the inmates of benevolent homes is more than three times the percentage of the same found in the entire State population, it is considerably lower than the percentage of single people among almshouse paupers. The percentage of widowed constitutes 58.30 per cent, in this group and 39.14 per cent, in the case of almshouse dependents. This would seem to indicate that widowhood constitutes a leading factor in institutional pauperism. This is especially the case with this group, consisting largely of women who are provided for, as long as their breadwinner lives, but wlio become dependent soon after the hus- band's death. The percentage of married inmates in these homes having their mates living, is less than one-half the per cent, of those ill county poorhouses. Of these 62.3 per cent, were living together in the same home. In the almshouse population, it will be remem- bered, only 9.9 per cent were residing together. The problem of the severing of home ties and close associations, is therefore, not so acute in this group. TABLE NUMBER 25. Niuuber of Children Living. Number of Number Children. Investigated Per Cent. None, 1,193 65.69 1, 265 14.59 2, 145 7.98 3, 109 6.00 4, 53 2.91 5, 26 1.45 6 13 .72 6 and over, 12 .66 1,816 100.00 69 The striking fact that 65.69 per cent, of these inmates have no children living — which is even 2 per cent, more than among tlie alms- house inmates- — is illuminating on the whole problem of aged de- pendency and institutional care. The percentage of inmates in benevolent homes in Massachusetts having no children living, was 60.6 per cent, as against 56.3 per cent, in the case of almshouse paupers. Fourteen and fifty-nine hundredths per cent, of those having children alive have but one child ; 13.98 per cent, have two or three children, and only 5.74 per cent, have more than three children living. This further bears out the reference previously made that the dominating factor compelling aged persons to go to an institution — whether it be a county poorhouse, or a benevolent or private home for the aged — is the fact that having no children of their own, they muKt seek the institution to furnish them the care they require. Most children will make sacrifices in order to take care of their aged de- pendent parents. Few strangers or relatives, however, want to be burdened with the presence of an aged person, even if they are to be paid for their services. That there is a real need for institu- tional care for certain aged groups, is obvious. Only a fraction of 1 per cent, of the inmates interviewed still had small children. Of those having adult children only 5 per cent, were receiving contributions from them. The amounts of the contribu- tions in the great majority of cases were less than $3.00 per week. Ninety-five per cent, of those having children received no contribu- tions from them. This seeming neglect on the part of children may be attributed, not so much to their unwillingness to make such con- tributions, but to the fact that many of these aged inmates having once paid their entrance fees, were not in need of such assistance. Only 4 per cent, reported of having near relatives, able and willing to support. Ninety-six per cent, had no other friends or relatives able or willing to support them. The scanty family connections of insti- tutional inmates are thus further emphasized. TABLE NUMBER 26. * Nativity of the Inmates Investigated. Place of Number Birth. Investigated Per Cent. Pennsylvania, 1,114: 51-62 United States, 298 13.89 Foreign, 684 31.59 Not stated, 62 2.90 2,158 100.00 70 The above table shows a higher rate of native born and a lower per cent, of foreign born among the aged inmates of benevolent and private homes than is the case in the county almshouses. While this is to be expected, the proportion of foreign born in these insti- tutions is still greater than the ratio of the same group to the total population of the State. Of these inmates, more than half were born in Pennsylvania; 13.89 were born in other States, while 31.59 per cent, were of foreign birth. TABLE NU3IBER 27. Native Country of Foreign Born Inmates. Number Country. Investigated. Per cent. Germany, 283 43.02 Ireland, 161 24.50 England, 105 15.95 Scotland, 33 5.01 Austria, 13 1.97 Switzerland, 12 1.82 Wales, 11 1.67 Norway & Sweden, 4 .60 France, 2 .30 Other Nations, 7 1.06 Not stated, 27 4.10 658 100.00 Approximately the reverse of the leading almshouse foreign born populations is the case of the foreign born populations in benevolent homes. In the former, Ireland leads with almost twice the number contributed by Germany — the second in the list. In the private homes for the aged, however, Germany comes first, with nearly twice the number contributed by Ireland. England maintains third rank here also, but contributes much more to this group proportionately tlian to the almshouse pauper group. Scotland also gives a higher percentage of the former inmates. Austria, — the leading country in the foreign born in the entire population of the State — contributes less than one-fourth of the number it supplies to the county poorhouse population. The other countries contribute but small percentages. The preponderance of German born residing in benevolent institu- tions may be accounted for by the early immigration from that country, and by the fact that many of the latter immigrants are rather thrifty and well organized along institutional, fraternal and beneficial lines. The percentage of naturalized voters among these inmates was found to be 75 per cent. This is 5 per cent, higher than among the inmates of pauper institutions and more than twice the percentage 71 TABLE NUMBER 28. Length of Residence in U. 8. and Pennsylvania. Years of Residence. In U. S. Per Cent. In Penna. Per Cent. 5 years and under 27 3.16 5 to 10 years 1 .2 29 3.40 10 to 20 years, 12 2.1 64 7.47 20 to 30 years, 30 5.2 69 8.04 30 years and over, 529 92.5 668 77.93 572 100.00 857 100.00 Of the 572 foreign born inmates stating their time of residence in this country, only 7.5 per cent, stated that they were here less than 30 years ; 92.5 per cent, lived in the United States for more than 30 years. Of the foreign born, and natives from other States in the union, 6.56 per cent, lived in Pennsylvania less than 10 years; 15.51 per cent, were in this State between 10 and 30 years, while 77.93 per cent, have been residents of this Commonwealth for more than 30 years. The small percentage of recent immigrants in these homes may be explained in the same way as in the case of the poorhouse in- mates. TABLE NUMBER 29. Physical Condition of the Aged Inmates. Number Physical Condition. Investigated. Per Cent. Sound or fair health, 776 35.98 Poor or bad health, 490 22.69 Defective in sight or hearing, 203 9.55 Crippled or maimed, 90 4.16 Eheumatic, 156 7.23 Chronic sickness, 63 2.91 Kidney trouble, 28 1.28 Tuberculosis, 10 .46 Dropsy, 7 .32 Feeble-minded, 65 3.01 Epileptic, 12 .55 Not stated, 258 11.86 2,158 100.00 The figures in the foregoing table are noteworthy. The number of these aged folks still in good health is remarkable. While among the almshouse inmates only 12.80 per cent, are reported in good or fair health the percentage of those in the same condition of health in the private and benevolent homes is 35.98 per cent. Although the percentage who are in good health among the "non-dependent" aged. studied in the house-to-house canvasses, is considerably larger than the percentage in this group, it must be remembered, that the ages represented here, are much higher than those in the "non-dependent" group. Only 3 per cent, we're between 50 and 60 years of age in the former, while 48.39 per cent, were in the same comparatively young age period in the latter group. Of those reported in poor health, it will be noticed that 22.69 per cent, were in bad health generally. The same percentage as in the almshouse group, were defective in sight or hearing. The per- centage of feeble-minded in these institutions is only about one-third the percentage in public institutions for the aged. Similar percent- ages in both groiips are found to be suffering from rheumatism, epilepsy, dropsy, etc. The percentage of able-bodied in this group is reported as 16.3 per cent., which is more than three times the per cent, of those in alms- houses ; 63 per cent, are reported as partially disabled, and 20.6 per cent, as totally disabled. In the almshouse population the percent- age of aged inmates totally disabled constitutes 55 per cent, of the inmates investigated. 'I ABLE NUMBER 30. Causes of DisaMlity. Number Cause. Investigated. Per Cent. Old age, 549 47.65 Sickness, 417 36.21 Accident, 107 9.30 Feeble-minded, 29 2.51 Loss of limb or organ, 50 4.33 1,152 100.00 This table is significant because it shows that old age is the lead- ing factor in incapacity among these inmates. It constitutes 47.65 per cent, in this group as compared with 33 per cent, in the alms- house group. Sickness follows next as a cause in 36.21 per cent, of the cases investigated. A considerable number are incapacitated through accident or loss of limb or organ. TABLE NUMBER 31. Occupation of Inmates Before Admission. Number Occupation. Investigated Per Cent. Skilled, 299 19.50 Common and unskilled labor, 251 16.35 Housewife, 559 36.44 73 Domestic service, 173 11.27 Farmer, 47 3.06 Clerk, 69 4.50 Miner, 15 1.00 Small business, 28 1.82 Profession, 93 6.06 1,534 100.00 The foregoing table shows that the percentage of skilled and semi- skilled workers is about the same in this group as in the almshouse group — 19.50 per cent, as compared with 17.94 per cent. The per- centage, however, of the common and unskilled group is less than half of the almshouse inmates. The number engaged in domestic service is almost twice the number of those who were engaged in the same occupation among the residents of pauper houses. As would be in- ferred from the disproportionate number of female inmates, the num- ber of housewives is also greater here. In contrast to the almshouse population, a considerable percentage of professional people and even a sprinkling of small business men are found among these inmates. TABLE NUMBER 32. Weekly Earnings of Inmates Before Admission. Amount of Number Weekly Wage. Investigated. Per Cent. $3.00 or less, 99 13.00 13.00 to 15.00, 140 18.24 15.00 to 18.00, 117 15.24 18.00 to 112.00, 212 27.63 112.00 to 115.00, 87 11.33 $15.00 to 120.00, 63 8.20 120.00 to $30.00, 46 5.98 130.00 to 140.00, 1 .13 $40.00 and over, 2 .25 767 100.00 The foregoing table is significant. It shows that 31.24 per cent. earned less than $5.00 per week ; and 74.01 per cent, earned less than $12.00 per week. Such a low wage was true of only 64.81 per cent. among almshouse paupers. The smaller income of the majority of the institutional inmates may be explained by the disproportionate number of women inmates, who evidently received lower wages. It is interesting to note that the great majority of these women paid considerable sums as admission fees. In saving up enough from their meagre incomes to pay the required fees, the sacrifices these women must have made, in providing for their old age, are amaziug. 74 The percentage of those earning more than |12.00 per week is again smaller among the inmates of private institutions. This may again be explained in the above manner. The present sources of income of the inmates investigated were given as follows: TABLE NV3IBEB 33. Number Source of Income, Investigated. Per Cent. None, 1,411 80.31 Pensions, 164 9.33 Savings, 143 8.14 Property holdings, 16 .92 Children's contributions, .... 3 .17 Any other contributions, .... 18 1.02 Union or Fraternal benefits,. .2 .11 1,757 100.00 It will be seen that more than 80 per cent, have no source of in- come. Of the number who receive some income, 42 per cent, receive from $1.00 to |5.00 per week; 48 per cent, from $5.00 to $8.00 per week, and 10 per cent, receive more than $10.00 per week. With reference to the previous property holding of these inmates, 87 per cent, stated they had never possessed any property. The values of the properties, of those having such, were given as follows: Six per cent, had properties valued at flOO and less; 11 per cent, from $100 to $200 ; 36 per cent, from |300 to $500, and ten per cent, more claimed to have had properties valued at more than $1,000. In entering the institutions only 321 or 16.7 per cent, of a total of 928 answering this question paid no entrance fees ; 5.3 per cent, paid $100 or less; 33 per cent, paid from $100 to $300, and 45 per cent, paid $300 or more on entering these homes. GENERAL DESCRIPTION OF THE HOMES FOR THE AGED. Practically all the different homes for the aged are maintained and managed either by various church denominations, beneficial or- ders, benevolent societies, or are maintained by private philanthropic legacies and endiowments. In addition to these sources of income and the income derived from admission fees, many of these organiza- tions solicit alms from different sources. A considerable number of these are also subsidized by the State. Of the 32 institutions re- porting to the Board of Public Charities for the year 1917, only tour did not charge admission fees. The entrance charge in the others ranged from $10, in one case, to $500 in the majority of cases. 75 All of the above institutions admit people only after they have reached a specific age. Of the 29 institutions stating the age neces- sary for admission, only one admits persons at the age of 45 and over. Fourteen institutions set the age limit at 60. In thirteen others no one is admitted under 65, while one institution admits people only after they have reached 70 years of age. No accurate estimate of the number of aged people in benevolent homes is available. In the Institutional Directory of the Board of Public Charities for the year 1916, there are listed 114 institutions, scattered throughout the State, under "Homes for the Aged." A number of those listed, however, have either no home in connection with their dispensing of relief or provide only temporary shelter. Approximately 100 of these institutions maintain permanent homes for the aged. A letter inquiring as to the number of aged inmates in these homes, brought 48 responses. In these institutions the total annual average population was found to be 2,829. Presuming that the same ratio of population will be true of the remainder of the homes for the aged, it may be assumed that the total aged popula- tion in 1917, residing in the different private and benevolent homes was approximately 6,500. The population of these institutions is far more stable and per- manent than is the case with the population in the county poor- houses. An analysis of the reports of 32 aged institutions, sub- mitted to the Board of Public Charities for the year 1917, shows that at the beginning of the fiscal year there were 1,466 inmates in these institutions. During the same year 372 more were taken in. Of these, 144 or 7.83 per cent, were discharged and 159 or 8.64 per cent, died during the same year. It will thus be observed that the move- ment of the population in these homes is insignificant, compared with that of the county almshouses. The explanation of this has already been stated elsewhere. The high death rate among this aged group is, of course, to be expected. Because of reasons mentioned before, the Commission was unable to make personal visits to these institutions. A few letters from the heads of these homes, however, may add some light as to the general character of the homes and the types of inmates. "Our work," writes one superintendent, "is to provide for the poor and destitute who have no property, no incomes, nor means of support and who are needy. We admit no one under 60 years of age. Most of them are over 70 and 80, and require care rather than means. As old age brings so many infirmities, there is not one here who has not some kind of an affliction. Our old people come to make their homes with us until they die." The Secretary of a Philadelphia Home writes, "We Ijave from 70 to 75 residents at our home, the age rauging from 68 to 90 years. Of 76 this number, I do not believe there would be even as many as one dozen who have one cent of income at any time ; consequently, nearly all are entirely dependent on the bounty of the Home. Some have children, but I doubt if any of them are able to provide a suitable and comfortable home for their aged mothers ; hence, their entry into our institution." The Commander of the Pennsylvania Soldiers' and Sailors' Home of Erie, reports: "This is a Home for Soldiers and Sailors of the Civil War, and of the Spanish American War, who are admitted by reason of their service and their inability to maintain themselves. They are all over fifty years of age ; the largest number over seventy- five; some over eighty; some over ninety, and one over one hundred. Nearly all receive pensions from the National Government, the amounts being governed according to the age and length of their service, which is held in trust for them by the Board of Trustees, while they remain in the Home. No women are admitted. There are here at present 211 men." "We care for 175 men," writes the head of another aged institu- tion, "all of them are over 60 years of age; 148 are over 70, and several are over 90. None of them are able to do any regular line of work. They have no relatives or friends who are able to or care to look after them. They have, therefore, placed them in this home to be cared for in every particular as if they were children. As no man is admitted who has a living wife, they are all widowers or bachelors and will remain here until they pass away. In most cases, the home will provide a place of burial and assume all expenses of funeral." The matron of an Old Ladies' Home explains, "You will see, over half of our family have no income whatever; if they are eligible, it makes no difference, we admit them. If they have pensions they pay $51 a quarter, and they receive $24 a quarter for their own use. We provide everything necessary for them." Another one informs us "Our home is a place for old people but we have none but old ladies who apply. They have nothing to amount to anything over and above the |700 entrance fee, as we do not take women who have money or can take care of themselves. They must be 65 years old and have lived 10 years prior to application in the State of Pennsylvania ; and able to help themselves. They have the use of the interest of the little money they have over and above the $700 for themselves. If they have nothing, the home cares for them as long as they live." An Aged Colored Women's Home reports of the following inmates: "Mrs. M. E., born Nov. 13, 1844, widow, without children, birth- place Philadelphia, no income from any source." "Mrs. H. G., bom -Jan. 11, 1839, widow, without children, birth- place Port Deposit, Md., no income." 77 'Mrs. M. D., born at Eumley, W. Va., was a slave and does not know date of birth, but thinks she is about 70 years old. No chil- dren, without any income." "Mrs. J. W., born in the South in slavery, does not know where or when. Probably about 55 or 60 years old. Mentally incompe- tent. No family." One matron sums up the inmates of her institution as follows: "None are admitted who are not destitute. None have any source of income. None have any occupation. None have any property. None have any relatives willing or able to help support them." That the recent increase in prices affected these institutions con- siderably may be seen from the following letter: "The capacity of our home is 55 but owing to war conditions, increased cost of living, and the fact that the income for maintaining the home is received solely from legacies of its founders, we have not filled any vacancies for nearly three years in an effort to reduce the population of the home to 35." It was alluded to before that many of the above Homes for the Aged receive subsidies from the State. "In some of these homes," reports the Pennsylvania State Dependents Commission, "it has hap- pened that the State appropriation has been large enough to run the entire institution." The State Board of Public Charities has juris- diction over the operation of these institutions. They are obliged to make a report annually to the latter body. At the end of 1918, however, only about 35 of the institutions for the aged had sent in their reports for the year 1917. Many of those who received State aid did not turn in a report, and a number of the reports that were returned were filled out inadequately. The necessity of stricter supervision of these institutions has been recognized and advocated for some time. The Commission on De- pendents in its 1915 Eeport to the Legislature urged strict super- vision of these homes because it. has found that in many homes where admission fees were charged, "It has happened more than once, that they have fallen into financial straits and being unable to comply with their contracts, they have closed their doors, in consequence of which these elderly people have been forced to seek relief and shelter else- where, and have irrevocably lost their money which had been de- posited as an entrance fee, and which was their sole dependence for support for the remainder of their lives."* •Report of Pennsylvania Dependents Commission, 1915, Page 57. 78 M $ •sasoEKl -xa iBno I !n p t-i es -p« pnB gdiiddng Sh 'O « S-S •nuBj no sssnedxa •JB^OI^ pUBJQ •psAVOjJoq ^anOK u gS tS 'Sddjnoa a> J9mo [[B raoi^ 5 o o •s^jonpojd puB IBIJ9:JBIII JO 8lBg .H •A^unoo pas 3:jb;s raoj^a; a o -t^ 3 -W d CO -a 'O ^> -a a a IZi iiiieiall^slSglii^iiiiiiS Hcoea i-*iiO rH«« 1-t HOteOOJrHOOOb-^t- snu ss OS Ob- S B a :;3 oj '3J pa» (Mcc ■« oe4 t- CDr-tOlO OW f-« O lOOOUJSSiSS S8g 8 jg I r-i I I ^ I I T-io®t-&ioooioiaio©ioiMt»^oioOi 'sss^; |Ph 'b . a OO CM(M «D» CO -fid j • I" ^j: •;r Is «2 03 .-s.I ss ! I o a" fd o S 's'^r-ii 1 ^ 'III mil • 111^^^^ s if .43 2 tafA S o a saw O O n 80 ■no(8[A!p sidoiis iq pnnoj SB Jiasa jad jsoo aSniSAy S8IJUBIIO oiiqnj JO pjBog o^ pa^^iuiqns SB ^asM. jad ^soo 33bj9Av •jB3i 3niinp pajjoaana jaqmnn aSeaaAy o s ■[BJOJ PUBJ3 •aouB -jnsni pna jgajajai •Sip -nns pnB pBaqjSAQ 'aouBnajmBoi )38jiq a 3532888 eortHcouS'* a a a QJ Oi O »■ S " o o'-' Z ^ ^ "SSggs-BJS'feSjJ-assssSi-aiSSsgiteaess o §, §. 8SS S^So5o@c4 SwcScoS 8S8SSBSSffiS iigi r£© 00 O s6'lb ^- t- t^ Cft »lOlH-*C en KPiSS © to lO » 3; W t- rH 00 ess SteS r)^S !SS& i-Pn n ^ n «o a a sssssssssssssggsssssa OCQ ^ K Q QS § Hioa)ai'*©«pc4e4-*<0'*i-cu3io« >-4i-<#'wt«53(Cioc4-«fi-I«»©«KDmc4 0> WSfi*^*"^^ S ! l^S ss o 3'g I oo. '0 0$ «|o 81 sIj; i§g ISg. iig •a a ■a3P) ban |„-s as": oja ft Oil- o cccaP o 82 From table No. Si, showing the incomes and expenditures of 32 institutions for the aged, it will be observed that 15 of these institu- tions receive State subsidies, the amounts aggregating 148,322.97. The State appropriations in a number of cases exceeded the incomes received from all other sources. Of the grand total income of $581,419.63, a total of |485,441.78 was spent on 1,545 inmates. The average per capita cost is thus |6.03 per week or |25.83 per month. This is slightly higher than the per capita cost in the case of the alms- houses. That there is a more proficient system of accounting in these in- stitutions is apparent from the fact, that although the same classifi- cations of expenditures were made in these institutions as in the case of the almshouses, there are fewer per capita costs here which cannot be made to balance. The relation of expenditures on "over head" to "direct maintenance" and to the "grand total" of expendi- tures, are approximately the same in both classes of institutions. The tremendous overhead expenses in a few of these institutions are also evident from the table. In one institution the weekly per capita cost amounts to $19.88, while in another it amounts to |38.81. As in the case of the almshouses, the interest on permanent in- vestments and depreciation is not included in the total cost. The aggregate valuation of the properties of 30 of these institutions, as reported to the Board of Public Charities for the year 1917, was )jS2,- 896,042.00. Five per cent, for interest and depreciation on these in- vestments amounts to $144,802.10. When this is added to the total expenditures made during the year, the aggregate expenditures are $630,246.88. This total when divided by 1,545 the average inmates supported during the year, raises the per capita cost from $25.83 per month to $33.99 per month. FACTS CONCEENING EECIPIENTS OP PEIVATE OUTDOOE POOE BELIEF. Thanks to the co-operationyof the Secretaries of the Associated Charities and Aid Societies of Erie, Lancaster, Lansdown, New Castle, Philadelphia, Seranton, Sewickley, Willamsport and York, their records for the latest fiscal year were examined by the Com- mission. Detailed information however, was secured of only such recipients of relief who were 50 years of age and over. A total of 471 cases were thus investigated. 83 TABLH NUMBER 35. Ages of the Applicants for Private Outdoor Poor Relief. Number Age. Investigated. Per Cent. 50 to 55, 60 12.7 55 to 60, 78 16.6 60 to 65, 62 13.2 65 to 70, 73 15.5 70 to 75, 104 22.0 75 to 85, 78 16.6 85 to 100 10 2.1 Not stated, 6 1.3 471 100.00 Of the aged recipients of private charity, 20.3 per cent, were between 50 and 60 years of age; 28.7 per cent, were between the ages of 60 and 70, while 40.7 per cent, were 70 years of age and over. That poverty and old age are in direct ratio to each other is thus obvious. TABLE NUMBER 36. Conjugal Number Condition. Investigated. Per Cent. Single, 57 12.1 Married, 213 42.2 Widowed, 183 38.8 Divorced, 1 .2 Separated, 13 2.8 Not stated, 4 .9 471 100.00 Although the percentage of married people in this group is much lower than is the case with institutional pauper classes, it is inter- esting to point out, that it is considerably lower than the percentage of the same found in the house-to-house studies; and is only a little more than half the percentage of married people of that age, in the entire population. This would seem to point out again- — what has already been shown — that marriage, as such, is not a direct cause of poverty. On the contrary, it may even tend to alleviate pauperism to a certain extent. Widowhood, or the loss of the breadwinner is the dominating factor everywhere, as a cause of poverty. This has been recognized in most civilized countries and practically all Euro- pean governments have established forms of protective insurance against such exigencies. 84 Scanty family connections are a characteristic feature of dependent classes. Of the married in this group, 34 per cent, live alone ; 41 pev cent, have but one other person living with them and only 25 per cent, have two or more persons in their families. Seventeen per cent, of the aged applicants for poor relief have children still under 16 years of age. Eighty- three per cent, of the children, however, are adult. The extent of the childrens' or other relatives' ability to help sup- port is given by 307 applicants. Of these, only 11 or 3.6 per cent, were reported as fully able to help support; 198 or 64.4 per cent, were reported as partly able or willing to help support, while 98 or 32 per cent, were unable to help support in any way. TABLE NUMBER 31. Nativity of Recipients of Private Charity. Number Nativity. Investigated. Per Cent. Pennsylvania 140 34.2 United States 117 28.9 Foreign 152 36.9 409 100.00 While the percentage of those receiving private poor relief is veiy small for Pennsylvania natives, in proportion to those born in this State in the entire population, poverty as a ^whole, is evidently home grown rather than imported from foreign lands. Sixty-three and one- tenth per cent, of the recipients of private outdoor relief are native born and only 36.9 per cent, are of foreign origin. The propor- tion of those born in other States and .in foreign countries is much larger than the proportion of the same groups in the total State popu- lation. While the percentage of native Pennsylvanians receiving charity is less than half the percentage of the same in the entire population, the ratio of those born in other States and receiving charity is more than twice the proportion in the entire State popu- lation. Of the foreign born 53 per cent, were naturalized. Only 12 per cent, of those born in other States or in foreign countries have lived in Pennsylvania less than 10 years; 20 per cent, were in this State from 10 to 20 years ; 33 per cent, from 20 to 30 years, and 35 per cent, have resided here for 30 years or more. While the percentage of those residing a shorter period in this State is higher in this group than in the case of the institutional dependents, the small percentage of dependents contributed by recent immigration is still noticeable. 85 TA BLE NUMBER 38. Occupations at Time of Application for Relief. - Number Occupations. Investigated. Per Cent. Not working 168 48.4 Common and unskilled labor. 87 25.0 Skilled labor 11 3.2 Domestic service 58 16.8 Housewife 23 6.6 347 100.00 The striking feature in the above table is the fact that 48.4 per cent, were not working at the time of application for relief. The small percentage of skilled workmen, as is apparent from the table, is significant. The large number engaged in domestic service is also conspicuous. The causes for relief were attributed to sickness, by 41.6 per cent., and unemployment by 7 per cent. Other causes for relief given, were : old age by 42 per cent. ; insufflcient income or low wages by two and one-half per cent. ; strikes by 1.8 per cent. ; accident by one and one-half per cent. ; domestic and other mal- adjustments by 3 per cent., and less than 1 per cent, were in tem- porary need because of death. The earning capacity of aged people may be seen from the follow- ing: Of those who were working at the time of their applying for relief, 48.6 per cent, were earning less than |5 per week ; 20.5 per cent, earned from |5 to |12 per week, and only 30.9 per cent, earned wages above |12 per week. These earnings, it must be remembered, were in a period of the greatest prosperity, in which high wages were the rule. One-half of the applicants, to the Charity Organizations enumer- ated above, had ho other sources of income outside their own wages. Of those having some outside assistance 70.8 per cent, were helped by children or other relatives; 10.2 per cent, by church organiza- tions ; 8 per cent, had pensions ; 5.3 per cent, were receiving benefits from unions or fraternal organizations and 5.7 per cent, more were receiving some income from property holdings or savings. The amounts of these outside incomes were less than $5 per week in 56 per cent, of the cases ; from $5 to flO per week in 32 per cent., and only 12 per cent, had outside incomes amounting to $10 or more per week. Of the 471 cases investigated, by these different Charity Organiza- tions 26.2 per cent, were found to be fully in need. Seventy-two and three-tenths per cent, were partly needy and only 1.5 per cent, were 86 found to be in no distress. Eighteen per cent, of these applicants had received relief once or more before ; 82 per cent., however, had applied for the first time. Only 9 per cent, of those applying for private relief -were inmates of charitable institutions at some previous time in their lives. The nature of relief given to these applicants is listed as follows: TABLE NUMBER 39. Nature of Relief Given. Kind. Number. Per Cent. Food 1C5 49.6 Fuel 50 15.0 Cash 49 14.7 Clothes 25 7.5 Legal advice 11 3.3 Home provided 11 3.3 Medical assistance 8 2.4 Given work 4 1.2 Referred to other institutions 2 .6 Relief refused 8 2.4 333 100.00 The amounts given per mouth to these applicants were as follows: 27.3 per cent, received |3 and less a month ; 16.7 per cent, were given from |3 to .fo per month; 33.8 per cent, from |5 to |10 per month, and 22.2 per cent, received relief amounting to more than |10 per month. The length of time this relief continued was for 1 month or less, 35.4 per cent. ; from 1 to 3 months, 17.2 per cent. ; from 3 to 12 months, 19.2 per cent., and for more than 1 year, 28.2 per cent. WORK OF THE PHILADELPHIA SOCIETY FOR ORGANIZING CHARITY. The Philadelphia Society for Organizing Charity had 218 appli- cants for relief, who were -"iO years of age or over for their fiscal year ending October, 1918. The nativity of these applicants was as follows: 111 were born in the United States; 40 were born in Ireland; 22 in England; 17 in Italy ; 13 in Germany ; G in Scotland, and one in each of the following countries : Austria, Armenia, France, Poland, Switzerland, and West Indies. Of the foreign born 34 were naturalized ; 32 were not natural- ized, while the citizenship of the rest of the cases could not be ascer- tained. Seventy-three were born in Pennsylvania and lived here all 87 their lives ; 13 resided in Pennsylvania over 50 years ; 45 lived in this Slate from 25 to 50 years ; 35 from 5 to 25 years ; i lived here less than o years and in 48 cases the length of residence was uncertain. The ages of the applicants were as follows : 44 were over 50 years of age but under 60 years ; 55 were between the ages of 60 and 70 ; 92 between 70 and 80 ; 20 between 80 and 90 ; three were over 90 years of age and four did not know their ages. Thirty- two of these were single ; 56 were married and lived together ; 112 were widows, 10 were widowers and 8 were deserted or divorced. Eighty-one of these applicants were living alone; 72 had two in their families ; 26 had three in their families ; 9 had 4 ; 14 had 5 ; 5 had fymilies consisting of 6 persons each ; and 22 had more than 6 in their families. Mnety-six of the applicants had no children living. Ten had children under 16 years; 57 had children over 21 years of age. Six had dependent grandchildren. Only 21 of these lived with mar- ried children and grandchildren. At the time of application 146 had no occupation; 24 did house- work; 20 did odd jobs; 16 sewed for a living and 4 were barbers. Among the other occupations given were mill-workers, carpenters, machinists, tin-makers, expressmen, news-stand men, clerks, teachers, peddlers, pipe-titters and storekeepers. Of those working at the time 37 earned less than f5 per week. Fifteen earned from |5 to |10 per week ; 9 earned from flO to .f 15 per week and 4 worked for their board. The previous occupations of these applicants are significant; forty- six were domestic servants; 30 were housewives; 20 were seam- stresses ; 19 were laborers ; 6 were collectors ; 5 were teachers, with a like number of drivers; 2 were watchmen; three were blacksmiths; and one was a pharmacist. Four had been in the regular army. Others were pipe fitters, actors, wholesale notion sellers, shoemakers, printers and longshoremen. The reasons attributed for relief were as follows : Feebleness from age 140 ; sickness 87 ; unemployment 25 ; irregular employment 9; non- support 20; accident 14; blind or deaf 15; intemperance 10; previous supporter incapacitated 14; and a few others because of exhausted savings. Of the 218 cases, 92 were completely dependent ; 86 were partially dependent ; 30 were temporarily dependent ; 6 needed homes ; and 4 would be dependent when small savings were exhausted. The nature of the relief given was food in 88 cases ; in 2S cases rent was paid and in a like mimber of cases clothing wa^purchased. Coal was given to 29 persons. Sixty-three persons were helped with a montlily outlay of S5 and under; 51 were given from $5 to ?]0 per month; 27 from $10 to S15 ■ 7 from ;i?15 to .1?20, and 14 persons were given relief amounting to |20 and more per month. 88 Of the other sources of income received by these applicants, 40 received support from children ; 25 from relatives ; 9 from friends ; 20 received pensions; 22 were given free homes with relatives; 11 were assisted by churches ; 6 had lodgers, and 30 had no other sources of income than that given by the Philadelphia Society for Organizing Charity. Only 13 of the 218 cases had obtained outdoor relief pre- viously, and 28 had been inmates of charitable institutions before. The extent of the ability of the children or other relatives to help support may be judged from the following: Twenty-five applicants secured complete support from children; 92 were given partial sup- port ; 40 had no relatives ; 17 had relatives who could not be located ; 23 had relatives who were unable to support, while 21 had relatives who were able but unwilling to help support. The Philadelphia Society for Organizing Charity gave cash relief to 162 of these aged applicants. The total amount given for the entire period these cases were under the care of the Society, was. $33,291.57. STUDY OF THE NON-DEPENDENT AGED POPULATION. By far the most numerous and most significant aged group to be considered in any study of the problems confronting the aged — is the non-dependent* aged group. This class constitutes the most import- antant element when a system of old age pensions is contemplated for the aged poor. Many aged people, not depending upon public or pri- vate charity, and nominally standing above the line of dependency and who are excluded from the ranks of the pauper classes, are often in needy circumstances, and would properly be entitled to share in the benefits of any system of old age pensions. It is, therefore, of prime importance to have all the information with regard to the number of the aged who are above or below the line of dependency ; the extent to which they were able and have saved for old age, and the degree of their physical capabilities to take care of themselves. Altho certain phases of the aged problem are generally known, the information available, was found to be insufficient as far as furnish- ing fuly the data which is necessary in a study of the exact condi- tions of the old people. This lack of material was even more felt when facts relating to the social and economic condition8,603 were between the ages of 50 to 59; 188,921 were between the ages of 60 to 64; 234,887 from 65 to 74, and 91,031 over 75 years of age. The percentage of people over 50 years of age in the entire State population in 1910 was 14 per cent. The percentage of those 45 years o.p age and over was 19.1. In urban centers, however, the percentage of those 45 years of age and over was 18.3 or eight-tenths less than in the entire State. The 1910 U. S. Census also gives the percentages of people 65 years of age and over as 4.3 for the entire population. The same aged population divided by urban and rural districts was 3.'i and 5.1 per cent, respectively. On the basis of the relation of the total aged people interviewed (including their wives), and th..^ popula- tion visited in the house-to-house ctudies, the percentage of people 50 years of age and over is 11.3. The percentage of those 65 years of age and over is found to constitute 3,2 i;er cent, of the total popula- tion. m TABLE NUMBEE 41. Sex. Pittsburgh. Headins. Philadelphia. Average Per cent. No. Per cent. No. Per cent. No. Per cent. Male, 794- 813 49.4 BO. 6 1,413 1,512 48.3 51.7 668 675 49.8 60.2 49.2 Female, Total, 1,607 100.0 2,925 100.0 1,343 100.0 The totals in the above table include also the wives who were 50 years of age and over. It will be seen that the percentage of females 50 years of age and over is a little higher than that of males. Tlie proportion of males and females, for those 50 years of age and over, as .given in the 1910 Census for the entire State population was as fellows: 49.8 per cent, for females and 50.2 per cent, for males. In urban centers, however, the ratio of males 45 years of age and over as given by the same Census was 17.8 per cent, as compared with 20.1 per cent, in rural districts. The percentage of women of the same age group was 18.9 in urban centers and 20.1 in rural district^'. The apparent discrepency between the figures in the above table and the Census figures for the entire State population may be due to the fact that the percentage of women 45 years of age and over in Hn urban centers is higher than the percentage of men of the same age grounp 1'- the same centers. TABLE NUMBER 42. Marital Conditions. Pittsburgh. Heading. Philadelphia. Average Per cent. No. Per cent. No. Per cent. No. Per cent. Single, 50 705 493 3 1 4.0 56.0 39.0 .2 .8 114 1,238 800 5 10 3 5.3 57.0 36.9 .2 .5 .1 73 559 407 3 5 8 6.9 53.0 38.5 .3 .5 .8 5.4 Married, 55.1 Widowed, 88.2 Divorced, _ .2 Sepiarated, .6 Not stated, .6 1,252 100.0 2,170 100.0 1,055 100.0 100.0 The above table reveals many interesting facts. The average per- centage of single people is found to be 5.4. The average for married is found to be 55 per cent. In the entire State population, as given in the 1910 census, the percentage of single people 45 years of age and over was 9.5 per cent. For the same year the percentage of married people, 45 years of age and over, was 69 per cent. A considerable in- crease over the Census figures is found in the case of widowed persons. The figures being 38.22 per cent, as given in the above table and 20.8 92 per cent, as given by the Census. The proportion of divorced in this aged group is less than one per cent, in both cases. The differences between the Commission's figures and those given by the Census may i:i part be accounted for by the fact that the latter figures include also the group between 45 and 50 years of age, while the former figures deal only with those 50 years of age and over. It is to be expected that the number of single people would be somewhat less among the older group than among the younger. The differences in the percentages of married people may be accounted for by the fact that the proportion of widowed in the three cities is almost twice as large as that given by the Census. That a considerable number die between the ages of 45 and 50 is obvious. The remarkable differences between the marital conditions of this senile group and the aged insti- tutional pauper classes have already been pointed out. TABLE NUMBER 43. Places of Birth. Nativity. Pittsburgh. Reading. Philadelphia. Aveirage Per cent. No. Per cent. No. Per cent. No. Per cent. 465 20S 569 15 37.1 16.2 45.5 1.2 1,830 69 208 63 84.3 S.3 9.8 2.8 356 50 616 33 33.8 4.7 68.4 3.1 B1.7 8.1 37.8 Not fltated 2.4 1,252 100.0 2,170 100.0 1,055 100.0 100.0 It will be observed from the foregoing table that of the people in- vestigated 51.7 per cent, were born in Pennsylvania ; 8.1 per cent, were born in other states of the Union, while 37.8 per cent, were of fcreign birth. The nativity of the entire State population in 1910 was, native born 81.2 per cent., and 18.8 per cent, foreign bom. The percentage of those bom in other States as compared with those born in Pennsylvania, was 9.4 per cent, and 90.6 per cent, respectively. TABLE NUMBER 44. Length of Time in United States. Length of Time. Pittsburgh. Reading. PMladelphia. Average Per cent. No. Per cent. No. Per cent. No. Per cent. 5 22 64 466 .9 8.9 11.6 83.7 20 IS 18 138 10.6 6.9 9.6 73.0 69 123 92 311 11.5 20.7 15.5 52.3 7.7 10 to 20 - lO.B 20 to 30 J!- 12.2 30 and over, 69.6 Total, v> 557 100.0 189 100.0 695 lOO.O 100.0 93 That only 7.7 per cent, of the foreign born have lived in the United States less than 10 years, is to be expected when it is remembered that men ordinarily emigrate to a strange country in the prime of life. Few people can undertake this responsibility when past middle age. The insignificant number of those having a short period of residence in Pittsburgh is largely due to the character of the population of the particular district and does not hold true of the entire foreign popula tion of the city. Twnty-two and sven-tenths per cent, have lived in the United States from 10 to 30 years, while of the foreign born residing in this county for 30 years or more the percentage varies from 52.3 per cent, in Philadelphia to 83.7 per cent, in Pittsburgh. The average for all cities of this class of residents is 69.6 per cent. TABLE NUMBER 45. Length of Eesidence in Pennsylvania. Pittsburgh. Reading. Philadelphia. — ■ Average Per cent. No. Per cent. No. Per cent. No. Per cent. 12 9 51 116 1,064 1.0 - .7 4.0 9.3 85.0 14 15 24 44 2,073 .6 .7 1.1 2.0 95.6 14 63 126 89 763 1.3 e.o 11.9 8.4 72.4 5 to 10 years, _ 2 5 10 to 20 years, ■ „ 5 7 20 to 30 years, a a 30 years and over, 84.3 Total - - - 1,252 100.0 2,170 lOO.O 1,055 100.0 100.0 The number of aged people residing in Pennsylvania under 10 years is apparently very small. That Philadelphia should have a higher percentage of the short time residents, is to be expected because of its larger foreign population. The proportion of those residing in Pennsylvania more than 30 years or all their lives, is very large in each city. The exceedingly higher percentage found in Reading is to be expected from a pouplation consisting largely of natives. TABLE NUMBER 46. Poltical Status of The Foreign Born. Naturalized. Pittsburgh. Reading. Philadelphia. Average Per No. Per ceiit. No. Per cent. No. Per cent. cent; Yes 464 39 92.2 7.8 163 30 84.5 15.5 308 177 63.5 36.6 80.1 No 19.9 503 100.0 193 100.0 485 100.0 lOO.O According to the Thirteenth United States Census, the percentage of naturalized foreigners in Philadelphia in 1910, was 41.5 jier cent. In Pittsburgh the percentage was 41, while in Reading it amounted 94 to 31.6 per cent. The higher percentages of naturalized voters given in the above table, as compared with those in the Census, is to be expected of the older persons whose period of residence, as stated before, was quite long. It may also be explained by the fact that the war has spurred many foreigners to become naturalized. TABLE NUMBER 47. Number of Persons in the Families Investigated. Number. Pittsburgh. No. Per cent. Eeading. No. Per cent. PMadelphia. No. Per cent. Average Per cent. 1 in family, 2 in family, 3 in family, 4 in family, 5 in family, 6 in faanily, 7 in family, 8 in family, 9 in family, 10 in family, Over 10 in family Not stated, Total, 258 833 249 158 78 64 41 31 16 7 3 14 1,252 20.6 26.6 20.0 12.6 6.2 5.1 3.3 2.5 1.3 .6 .2 1.1 100.0 563 421 299 215 116 76 38 18 14 16 40 2,170 16.3 26.0 19.4 13.8 9.9 5.4 3.5 1.8 .7 1.8 271 SOO 130 115 87 62 35 29 13 6 2 6 100.0 1,055 25.7 28.4 12.3 10.9 8.3 5.9 3.3 2.8 1.2 .5 .2 .5 21.2 27.0 17.2 12.5 8.1 6.4 3.3 2.3 1.1 .5 .3 1.1 lOfl.O The preceding table is interesting. It will be observed that the number living alone varies from 16.3 in Reading to 20.6 in Pittsburgh and 2.5.7 in Philadelphia. This variation is readily explained by the larger foreign born population in the respective cities, which contrib- ute a greater number of single people. Twenty-seven per cent, have ouly their wives living with them. The number of aged folks living either alone or with their wives constitute thus, nearly 50 per cent. Twenty-nine and seven-tenths per cent, have one or two children living with them and 21 per cent, have three or more children residing with them. TABLE NUMBER 48. Number of Children Living. Pittsburgh. Reading. Philadelphia. Average Per cent. No. Per cent. No. Per cent. No. Per cent. None, 94 176 170 178 153 114 112 163 10 8.0 15.0 14.0 15.2 13.1 9.7 10.0 14.0 1.0 199 820 330 306 244 184 111 228 22 10.2 16.5 17.0 15.7 12.6 9.5 6.7 11.7 1.1 131 152 169 144 113 S4 76 92 7 13.7 15.9 16.6 15.0 11.8 8.8 7.9 9.e .7 10.6 16.8 16 9 1, 2 3, .- _. . 15.3 12 5 4, __ 5 - C, ..-, _ 7.6 7 to 10, __ _ .. 11.8 .9 1,170 100.0 1,944 100.0 958 100.0 lOO.O 95 Attention has already been called to the fact, that while of this aged class, only 10.6 per cent, have no children, the percentage of those not having any children in the pauper groups were 65.61 per cent, in the case of almshouse inmates; a similar percentage in the case of inmates of benevolent homes, and 44 per cent, in the case of the recipients of private outdoor relief. It is evident that the pos- session of children in old age is a great protection against depend- ency. Thirty-one per cent., as shown in Table No. 48, had one or two children living; forty-five per cent, had from 3 to 6 children alive: while 12.7 per cent, had more tban 6 children living. Of these chil- dren, only 3.3 per cent, were still under 16 years of age ; 16 per cent, of the adult children were married, while 80.7 per cent, were still single. It is interesting to note that among the aged people apply- ing to the Charity Organizations for relief, the number of those hav- ing children still under 16 years of age, was 17 per cent., or more tban five times the proportion in this group. TABLE NUMBER 49. Number of Dependents. Number. Pittsburgh. Heading. PMladelpUa. Average Per cent. No. Per cent. No. Per cent. No. Per cent. 36.? 303 165 87 49 24 44 !i5.1 29.3 15.9 S.4 4.7 2.3 4.3 782 BS7 248 117 68 24 29 43.3 29.8 13.7 6.5 3.8 1.3 1.6 287 293 99 72 33 22 16 35.1 35.5 12.0 8.8 4.0 2.7 1.9 37.8 1, 31.5 2, _ - _ - -_ 13.9 3 _ _ _ 7.9 4 ■ 4.2 5, _„ _ 2.1 2.6 Total 1,035 100.0 1,805 100.0 822 100.0 100.0 Altho as was pointed out, only a small percentage of this grou]) have children under 16 years of age, the number of those, however, having no one depending upon them is only 37.8 per cent. Thirty-one and five-tenths per cent, have their wives to support, while 30.7 per cent, more, have one or more children besides their wives depending upon them. The dependents are, of course, not confined to juvenile children. They are often defective adult children and members of the family who are invalided. Many cases were found where aged people were supporting their widowed daughters or grandchildren who were left orphans, or who were defective. 96 TABLE NUMBER 50. Living with Whom. Living With. Pittsburgh. Reading. Philadelphia. Average Per cent. No. Per cent. No. Per cent. No. Per cent. 588 56 188 206 66 63.3 5.1 17.0 18.6 6.0 969 157 218 340 177 .52.6 8.5 11.8 18.1 9.0 448 75 144 143 94 49.6 8.3 15.9 15.8 10.4 51.8 Alone - 7.3 14.9 Married cliildren, 17.5 Relatives or friends, 8.6 Total, . 1,104 100.0 1,881 100.0 9M 100.0 lOO.O Of the total 3,889 families given in the above table, it is seen that more than 50 per cent, were still the heads of their own families. Seven and three-tenths per cent, lived alone; 32.4 per cent, lived with children and 8.5 per cent, were living with relatives or friends The liirge number of the non-dependent parents residing with their chil- dren is striking, as compared with the pauper classes. This is a result largely, because unlike the case with the pauper classes where tlie great majority of the children were unable to help support, the occupations ascertained of the children who do support their aged parents seem to show that the latter are more or less capable of doing so. The figures in the folowing table reveal the fact that only few of these children belong to the lowest ranks of labor. TABLE NUMBER 51. . Occupations of Children who Support Their Parents. Occupation. Pittsburgh. Reading. Philadelphia. Average Per cent. No. Per cent. No. Per cent. No. Per cent. Skilled and semi-skilled, „. Oommon and unskilled la- 109 105 iia 20 17 29.7 28.6 31.8 5.5 4.6 237 120 52 21 10 53.8 27.3 11.8 4.8 2.3 83 49 18 30 5 44.8 28.6, 9.7 16.2 2.7 42.7 27 6 Olerlcal, — 17.7 8.8 3 8 Small business, Professional, _ Total, . S87 100.0 440 lOO.O 185 lOO.O 100.0 Of the married children, who were supporting their parents, it ap- pears that a great majority were not burdened with large families of tlieir own. Seventeen per cent, had no children at all ; 47 per cent, had but one or two children to support ; 24.5 per cent, had three or four children living, and only 11.5 had more than four children of their own. A number of cases, in each city, however, were found 97 where aged persons were supported by children who were earning low wages and had large families of their own. Aged parents— and in some cases even distantly removed relatives — were given support by many heads of families even though it entailed great sacrifices. This burden, altho in most cases borne cheerfully, was nevertheless, at the expense of their own and their children's comfort. TABLE NUMBER 52. * Physical Condition and Cause of Disability of the Aged Persons. Physical Condition. Pittsburgh. Beading. Philadelphia. Average Per cent. No. Per cent. No. Per cent. No. Per cent. Sound or lair health, Poor or bad health, 770 184 110 33 31 19 13 12 11 5 5 4 2^ 64.0 15.3 9.1 2.8 2.6 1.7 1.0 1.0 .9 .4 .4 .3 .3 .2 1,255 276 211 42 54 43 18 26 47 -9 S 8 3 6 62.6 13.7 10.5 2.1 2.8 2.2 .9 1.3 2.3 .5 .3 .4 .1 - .3 649 122 99 30 25 22 12 13 11 1 3 S 2 65.5 12.8 10.0 3.0 2.5 2.2 1.2 1.3 1.1 .1 .3 .3 .2 64.0 13.8 9.9 Peeble from old age, — - Crippled or maimed, Deiective hearing or sight,. Chronic sickness - 2.7 2.6 2.0 1.0 Kidney trouble, - 1.2 Heart trouble, 1.5 Epileptic, Invalided, - .3 .3 Tuberculosis, — .3 Dropsey, .2 .2 Total 1,202 100.0 2,003 100.0 992 100.0 100.0 The comparatively larger number of thi^ senile population in sound or fair health, over those in pauper institutions has been com- mented on before. That the percentage of people between the ages of 50 and 60 is greater in this group than in the pauper classes has also been pointed out. It is significant, however, to note th .t 36 per cent, of the people 50 years of age and over in the three cities studied have already become incapacitated. The leading defects given were as follows: 13.8 per cent, were in a general bad or poor state of health ; 9.9 per cent, were suffering from rheumatism, and only 2.7 per cent, claimed old age as a direct cause of their feebleness. Small per- centages were suffring from various illnesses. Of the number re- ported sick in the three cities 61,8 per cent, were partially incapaci- tated and 38.2 per cent, were tQtaly incapacitated for labor. 98 ti C3 O) l>^ -l-s aj « F4 OJ ,j^ , H CO lO bO M K ^ «3 P CO ^ d ^ r^> PC -Ij o E-i OJ a •rH H .1:3 be ■A CO 0^ OLi 00 =0 OS t,W US iHl-l 1 aj^_j^ ea H bi) a ||Sg3?3 ~eq~ tin 4) ^ 03 r-T ^ >] ^ CO CDOjI>0)CD -P '^ ■^* 06 I> N rH 1 ^' yA bo 03 P 'a ,0 S ffi laiNoooino 03 g5jWM«m 1 3 A rt ssssss S3 ^ 3 COl-H 10 ^ Ph i ■ ^ CO CO 00 1>-* 10 <^ er cent, had sickness in their families from three to 12 months, while G.."> per cent, had somebody sick in their families for more than twelve n»onths. Sickness with regard to wage-earners themselves in the same families is found to be as follows: f)'.).~) per cent, of ti\e wage- earners were not sick at any time during the year. 18. G per cent, were sick for less than three months ; 10.9 per cent, were sick from one to three months ; 8.7 per cent, from three to twelve months, and 2.-3 per cent, were sick all the time during the year. The enormous amount of sickness among wage-earners themselves in this population in signifi- cant. 100 a o •r-t -5H OS w G H M O S P3 P .2 f^^ OJ § Ph pq nS <* 3 H ^v PI Ph OlftlO'^r-'OCOOOlOt-; o ^^OM-^NrHN^rHrt. § 5 fi ^ O m OOOr-JrHOtNOOoD-dJNW O CQ^tDMlft 'rHrHI>rH« 8 t> M <1 flH \t; lflrHMOt-»-*WO"*lA o e« 1 COeSrH rH S r-l 2 t-, ja t*5- 00 <» to Ohm ga 00 ri 00"*O >H CO W 1 a o" THr-liH r» A< a 4^ Ot-'*COr-H s ^ M tH 3 fl 1^ ^ S§S SS'°S'°g°>°^ § (C d ■M rH t-OC^ CD cotDOOeq o 93 s ggcdcJci -> 's-^'s I 1 a (^ gisssa S'°a''3 M Nr-l i-i frl ooooos'^irse.oofNN o o ^3 a ^■^^^^ -^^^^^ g cS s !>i n O a s glgsfesgegas i~ a o K '"' 1 w" lt3"*CONlOrHO<»(Mlft'* o s 5SS«'^'^ ■" ■"■-'^S 1 X3 bO »^ h il* P fM ■Q fi s d ;2i 1 r II Mi i -a-a j ga : 1 MM ', S ' 1 1 1 to to ; - iSSSsS a (OH s o 101 Table Number 54 reveals many interesting facts. An exaraination ol the total number of aged persons in all the three cities from whom the previous and present occupations were ascertained, shows that men past a certain age must quit even the skilled trades in which they have been engaged the greater part of their lives. Modern industry, apparently, has little use for the superannuated worker, and few men can continue working at the same occupation after they have reached a certain age. While 36 per cent, stated that they were skilled or semi-skilled mechanics in thir earlier days, only 23.8 per cent., of men past 50 years of age, were sstill engaged in the same occupation. The percentage of those doing unskilled or common labor or clerical labor, on the other hand, remained stable. That there would be a decrease in the per cent, of the aged population formerly engaged in small business enterprises is surprising. It is also to be noticed that in their earlier days less than 2 per cent, ^ere not working because of incapacity, but 26.6 per cent, were found not to be working among those 50 years of age and over. The fluctuations of the minor occupations are inconsiderable. 102 03 o I— i -r-i EH H p> «J 03 a t< i^ la CO r- V 00 ii CO 00 ^ r;^ ;ji ^ ■* W j g iftoeocooioeoiftfflt- rH l>J CO t-^ 00 O 00 "* CO C0in .2 H Oh i 6 12; 3S53S!SS|a*S CO G fan p t-i-lCO| ^. ho 3 .8 .9 2.S 4.8 4.8 20.3 22.0 6.7 1.3 35.6 1 S d (^4 ^ Tti r^ as in rH p 5 -t> oinWNiAOoc 103 ^able Numbep 55 is significant. The effects of war wages upon the earning capacity of this senile group is shown clearly. The extreme low pay has diminished considerably. While 7.5 per cent, were earning less than ijfo per week in their former days only 3.5 per cent, or less than half were earning the same at the time of investiga- tion in spite of their advanced ages. This would seem to show that the wage rate per day was considerably higher during the war period, and men and women who because of their poor health could work only two or three days in the week, earned more than they did foi* merly,. even while working, in many cases, every day in the week. The percentage earning the next wage from $5 to .|12 per week is also almost one-third the percentage of those who earned the same weekly sums in their earlier ages. On the other hand, of those' who earned the average wage previously, between |12 and |20 per week, the percentage was 42.3 per cent, as against 28.2 per cent, earning the same amounts at the time of investigation. Twenty-two and one- tenth per cent., however, were earning |20 or more a week in their earlier days, but 24 per cent, were earning the same amount of money at present. In spite of the tremendous industrial expansion iii Penn- sylvania during the war, and the drafting of the young workers from the three cities investigated, it is evident from the low standard of the average wage paid these workers, that aged people are either not wanted in Pennsylvania industries or are not remunerated to the same extent as the younger workers, or to the extent of the Avages earned by themselves in their earlier days. Besides the effects of the increased cost of living, however, the conditions of the aged were affected by the war in many other ways. Many of the old folks were supported largely by young children who boarded with them. Altho the latter often made no direct contributions to the family, they paid for their room and board, which very often was sufflcient to keep the entire family in comfort. A^'hen these boys were drafted, a great number either made no allotment or in many cases, when they were made, they were received after much delay. A great many aged people were thus left almost destitute by the war. Instead, there- fore, of decreasing the problem of aged dependency, the effect of the war has tended to augment it. It is interesting to observe the variations in the present wage- standards of the three different cities. Philadelphia gives thbla. Aveiagt for No. Per cent. No. Per cent. No. Per cent. AU. Sickness, 'Old aee . .. 76 83 , 38 19 35.2 S8.4 17.6 8.8 157 105 31 14 51.1 34.2 10.1 4.6 120 71 26 2 64.8 32.4 11.9 .9 47.0 35.0 13.2 Various other causes, 4.8 Total, - 216 100.0 307 100.0 219 100.0 100.0 The causes attributed to the impairment of wages are given in the above table. It will be observed that sickness is the leading cause of impairment. However, this is true only of Reading and Philadel- phia, the leading cause of disability in Pittsburgh is attributed to old age, which in the former two cities, ranks second. TABLE NUMBER 57. Ages When Earning-Power Was Partially and Totally Impaired For the Three Cities Inclusive. Age. Age When Impaired. Age When Stopped. No. Per cent. No. Per cent. Undar 30 - 21 32 152 126 112 109 52 41 13 3.2 4.8 23.2 19.2 17.1 16.6 7.8 6.2 1.9 16 65 64 70 102 81 74 29 3.0 40 to 50 11.2 13.0 55 to 60 14.2 21.0 16.6 - 70 >to 75 15.1 6.0 Total, — 658 100.0 490 100.0 The above table is significant. While the percentage of workers, whose earning-power is impaired before the age of 40 in Pennsyl' vania, is small, the percentage of those whose earning-power is im- paired between the period of 40 and 50 years of age is considerable. Fifty per cent, of workers have their earning-power impaired before the age of 55. When reaching the age of 65, nearly 85 per cent, of wage-earners have their earning-power impaired and their wages re- duced. That many heads of families still continue to labor even after their health has been impaired is generally known. The above taile shows that only 14.2 per cent, had stopped working altogether before the age of 50. At the age of 60, altho 67.5 per cent, had their health im- paired, only 41.4 per cent, of the heads of the families had .actually stopped working. It is interesting to point out that while there is little difference between the three cities with regard to the impair- ment ages, there is considerable variation in the percentages of those that stopped working altogether before reaching the given age period. Only in 9 per cent, of the cases did the earning power stop entirely before 50 years of age in Reading. In Philadelphia, the earning power of 13.8 per cent, of the heads of families stopped before reach- ing the age of 50, while in Pittsburgh it was 21.26 per cent. -£3 »; 3 Td fl M T3 i=l CS Oi a,) hr lO -il M >-, W JD ■4^ 3 t:3 d ^'h .S H a -< H o 100 IM 00r-N5O CO W-^H«D M T-H-* CO 1ft t^-* -* O Ot- io t- N i-i CO rH ift Ift t- t^ t> CO CD W -"ii O O lA CO go CD -* O r-< {> MM N ^ CO CO O CO lO-* MCO r O -^ OO M O CO (M i-I ■* tD O --H CM«(D!M Olft cd-^ iH COO Ift ■1 :o io -rj* QD i-( CO CO in -^ CO O O) M CO r-5 00 00 O M CD ">Ji OS ift CD i-H O COM iH M Ol M "*MCD00Or •*ind CO M CO 1ft I- 1 1 1 : TS is ' >, SR ^J S -2 ^ 3 o a g'3 107 The preceding table is exceedingly signiiicant. Tt will be observed that the earning power of manj-^ workers is impaired before they reach the age of 40. The percentage varies from 2.6 per cent, among indoor and sedentary trades to 16.4 in the steel industry and 57.1 per cent, in the case of railroad workers. Only in the steel industry, however, is there found a number who are totally incapacitated before the age of 40. The extent of incapacity before reaching the age of 50 among workers, classified according to the industries they were en- gaged in, is also shown in the above table. It will be observed that in the building trades 12.6 per cent, are partially impaired before the age of 50 and only 6.3 per cent, are totally incapacitated before reaching the same age. On reaching that age it is found that 55.3 per cent, are partially and 14.1 per cent, are totally impaired in the case of steel workers. Of those engaged in causal occupations 26.7 per cent, have their earning powers partly, and 8.4 wholly reduced before attaining 50 years of age. Of indoor and sedentary trades the percentage of partially impaired before the 50th birthday is 15.2, while 8.3 are wholly disqualified for service at that age. Twenty-six and nine-tenths per cent, among glass blower.s have their earning powers reduced before reaching 50 years of age and 20 per cent, at the same age are permanently incapacitated. Of skilled workmen in the various trades, 29 per cent, are impaired partially and less than 3 per cent, wholly before attaining their 50th birthday. Among rail- road workers of those whose incomes are affected before the age of 50, the percentages are 64.3 to a partial extent and 6.2 entirely. At the age of 60, the proportion of workers, according to the various trades, whose earning powers had not yet been affected are as follows: In the building trades 55.1 per cent, suffered no loss of income before reaching the age of 60. In the steel industry only i;^>.2 per cent, were earning the same amounts as in their earlier days at that age. Thirty-six per cent, of workers are still found engaged at 60 in casual occupations. Among workers of indoor and sedentary trades, 46.5 per cent, were found without reductions in their earning power at the age of 60. Only 26.9 per cent, of glass blowers are in their full capacity at that age, and none are found engaged in that industry at the age of 70. The percentage of skilled mechanics in good health at 60, is 25.5 per cent., while 28.2 per cent, of railroad workers are found to be in unimpaired health at the age of 60. 108 TABLE NUMBER 59. Causes of Disability According to Occupations Engaged In. Occupation. Sickness. No. Per cent. Old Age. Industrial Accident. ' Mal-adjustment, No. Per cent. No. Per cent.. No. Per cent Building trades, ' 73 Steel industry, j 35 Casual occupations, 83 Indoor and sedentary oc- cupations I 96 Grlasa blowers, - 13 Various skilled trades, ..i 69 Bailroad workers. 9 65.7 43.7 51.8 57.9 59.1 61.4 '■ 32.1 I 23.7 32.5 36.9 36.5 36.4 35.1 32.1 12 j 16 I 18 1 5 1 15 10 10.6 20.1 11.3 4.3 4.5 11.2 36.8 3.7 1.3 A glance at table Number 59 reveals the causes of the high and low disability age periods as are found in the various industries. In the building trades the leading cause of disability is attributed to sick- ness, with old age following. The same is true of all other industries except in the case of railroads, where the leading cause is attributerl to accidents, with 35.8 per cent. Old age, as a cause of incapacity, is highest in the case of indoor and sedentary occupations and lowest in the building trades. Accidents as a cause of disability, as stated above, is highest among railroad workers. A high percentage of acci- dents — 20.1 — is also found among steel workers. TABLE NUMBER GO. Other Sources of Income. Sources. Pittsburgh. No. Per cent. Beading. Philadelphia. No. jPercent., No. Percent.) Average I for All. None. Children's support, Property-holdings, Savings, Pensions, .—-— Insurance, Union and fraternal benefits, All other contributions, Total, 364 315 200 34 47 18 11 145 1,134 82.0 28.6 18.0 .3 4.0 2.3 1.8 13.0 768 421 193 64 141 27 172 87 41.0 22.5 10.3 3.4 7.5 1.5 9.2 4.6 lOO.O I 1,873 100.0 445 164 66 11 48 57.6 21.2 7.2 ' .8 ' 4.5 1.1 1.4 6.2 100.0 43.6 24.2 11.8 1.5 6.3 I.« 4.1 7.9 lOO.O It will be seen that the proportion of those who have other sources of income besides their wages is quite varied in tJie three cities. 1" Pittsburgh, only 32 per cent, have no other source of income. In Reading, there are 41 per cent, having no other means of support, whUe in Philadelphia more than one-half, or 57.6 per cent, claimed to have had no other source of income except their earnings. The ex- planation largely lies, as has been pointed out before, in the different 109 characteristics of the populations canvassed in the three cities. For the three cities inclusive, the average per cent, receiving in- comes from property holdings was 11.8 ; from savings 1.5 per cent. ; from pensions 5.3 per cent. ; from insurance l.G per cent. ; and from unions or fraternal organizations 4.1 per cent. Many of the aged folks were supporting themselves by having their children board with them, while the great majority were living with their children ord were supported by them. The aihounts of the outside income were given as follows: 3.1 per cent, claimed an income from other sources amounting to less than |2 a week; 11.7 per cent, received an income from |2 to |5 per week; 20.1 per cent, from |5 to |10 per week; 19.9 per cent, from $10 to |20; 18.1 per cent. $20 or more, while 27.1 per cent, only received room and board and the necessary expenses. TABLE NIJMBEE 61. Property Possessions. Owned Property Pittsburgh. Reading. Philadelphia. Average for AU. No. Per cent. No. Per cent. No. Per cent. Yes, -__ - 600 439 57.5 i2.5 580 888 39. B 60.5 95 449 17.5 82.5 88.0 62.0 Total, ,1039 100.0 1,468 100.0 544 100.0 100.0 The differences, in the three cities, between those who claimed to have had property above debts at any time is significant. Only 17.5 per cent, of Philadelphians claimed to have had property of their own. In Beading, the percentage was 39 and one-half per cent., while in Pittsburgh, 57.5 per cent, claimed to have had property abo\e debts. On the other hand, while in Pittsburgh only 42.5 per cent, had no property, the percentage of the same in Philadelphia was 82,5 per cent, or nearly double the number in Pittsburgh. Of those who claimed to have had property in their earlier days but who had lost it, the causes given for the losses were as follows: 88.3 per cent, had to sell their properties in order to meet emergency needs, or because of want of immediate support; 7.1 per cent, lost their property thru unwise investments; 2.3 per cent, thru bank fail- ures, while an equal per cent, lost their property thru fraud. The adequacy of the earnings of the aged in Pennsylvania to meet their needs, may to a certain extent be judged from the following tibles. The weekly expenditures given below are only for those aged who were the heads of the families. No classification is here made as to the expenditures of individual males, females, couples or fami- lies. The average number of persons in the families studied, how- ever, was in Pittsburgh, 3.6, Reading 3.8, and Philadelphia, 3.7. 110 TABLE NUMBER G12. Monthly Expeiulitmes for Bent. Amount per Month. Pittsburgh. Reading. Plniladelphia. Average Per cent. No. |Per/cent. No. Per cent. No. Per cent. 13 1.4 29 3.1 32 2.0 63 1 4.1 223 1 1'.5 234 : 1-T.3 142 9.6 r,2 ' 3.4 ^1 i 62 7:2 3.5 $ 5 to $ 8 91 ' 12.6 167 23.2 102 14.2 105 14.5 7« ' 10.5 14 ' 2.0 4 .5 111 ' 16.3 6.6 69 38 6» DS 26 6 6.3 4.1 7.4 9.8 2.7 .6 14.6 $12 to $15, - 11.2 $15 to $20, 10.5 8.0 ftSO to S40 1.7 $40 and over, ^ .4 609 1 64.6 774 60.6 43.5 Total -- 942 ^ 100.0 1,629 100.0 722 ' 100.0 100.0 For the three cities studied, 10.1 per cent, pay rentals of less than !t'S per month. The variations tor (»a(li city, liowcver, are consider- able. It varies from 4.5 per cent, in Pittsburgh to 19.8 per cent, in Philadelphia. Tr^^enty-flve and eight-teiitlis per cent, pay rentals ranging from ^8 to |15 per month. This again varies from 10.1 per cent, in Pittsburgh to 2!t.S in Reading and 'MA per cent, in Pliiladel- phia. In the Philadelphia districts, more than 50 per cent, pay rentals amounting to less than |15 per month. In Pittsburgh only 14.9 per cent, pay similar sums. The differences in these rentals is not only an indication of the higher rents ]>ai(l in Pittsburgh but further bears out the dift'erences in the character of the poimlation, residing in the territories canvassed in the different cities. It is again to be noticed that while only 15 per cent, wei-e owning their liomes in Philadelphia, 50.6 per cent owned homes in Reading and fi+.6 per cent, v/ere home owners in Pittsbui'gh. The average home ownership for the three cities is 43.5 per cent. The Thirteen tTi U. S. Census gives the home ownership for Pennsylvania as 41.5 per cent. In the entire United States, home ownership was 45.8 per cent. TABLE NUMBER C3. Weekly Food Expenditures. Weelfly Amount. Pittsburgh . Heading. Philadelphia. Average Per cent. No. Per cent. No. Per cent. No. Per cent. $ 5 and under, $ 5 to $10, 48 123 205 147 99 7.7 19.7 33.0 23.8 16.0 98 280 317 166 91 10.4 29.5 33.4 17.2 9.5 61 108 104 66 52 15.8 26.7 26.9 17.2 13.4 11.8 25.3 $10 to $15, ___ . 31.1 $15 to $20, ._ 19.2 $20 and more - 13.1 Total, — - _- 622 lOO.O 951 lOO.O 386 100.0 100.0 Ill The -greater number of single aged people in Philadelphia again accounts for the greater percentage of those spending least on food per week. A greater number spend from flO to |20 on food, in Pitts- burgh, than in Eeading or Philadelphia. For the three cities inclu- sive only 36.6 per cent, spend less than |10 per week on food ; 50.3 per cent, have expenditures on food running from $10 to $20 per week, while 13.1 per cent, spend more than |20 per week on food. TABLE NUMBER 61. Monthly Expenditures for Clothing. Pittsburgh. Reading. Philadelphia. Average Per cent. No. Per cent. No. jper cent. 1 No. Per cent. None 45 48 40 18 30.0 32.0 26.0 12.0 142 493 52 8 20.2 71.0 7.5 1.3 50 117 54 11 21.6 50.6 23.2 4.7 23.9 61.2 18.9 6.0 $ i and under, $ 5 to $10, — .. $10 and over, ^ Total, - 151 100.0 695 lOO.O 232 100.0 100.0 The remarkable small expeditures made on clothing by many aged folks is evident from the above table. This is to be expected of the aged group, who manage to get along with much less expenses on clothing than can the younger and middle aged group. It will be ob- served that in Pittsburgh the number having no expenditures on clothing is considerably larger than the number in other cities. That the large expenditures made on rents and food have something to do with this fact, has been borne out from the investigations in the three cities. Many aged parents, in answer to the question of the amounts spent on food and rents replied, "we spend all we make." Very little under these circumstances was left to be spent for clothing. The ii.genious methods applied by many housewives in obtaining their clothes were astonishing. Only 25 per cent, were spending more than $4 a month on clothing. TABLE NUMBER 65. Monthly Expenditures for Medicine. Amount per Month. Pittsburgh . Heading. Philadelphia. Average Per cent. No. Per cent. No. Per cent. No. Per cent. 81 92 22 12 39.1 44.4 10.7 ,5.8 265 440 19 7 35.3 61.1 2.6 1.0 149 178 9 5 43.7 52.2 2.6 1.5 41.4 48.3 6.7 3.6 207 100.0 721 100.0 341 100.0 100.0 Onlv 41.4: per cent, had no expenses on medicine; 48.3 per cent, spent less than $1 per week; 10 per cent., however, were found to have medicine expenditures of over $5 per week. CHAPTER II. EXTENT AND NATURE OF EXISTING PENSION SYSTEMS IN PENNSYLVANIA. (1) INDUSTRIAL PENSION SYSTEMS IN PENNSYLVANIA. The problem of the old man in industry is comparatively a new one. It is the outgrowth of the machine process and industriaL expansion. It might seem to some, that the war, with its increasing demand for labor, has checked, if not solved, the problem of super- annuation. But the careful observer will readily see that the prob- lem has only been aggravated. The increased industrial efiiciency, necessitated by the war, and the great demand for young men, has magnified the problem of the worn out worker. And as under the added strain of war efficiency combined with modern industry, human energy soon wears out, the problem will, doubtless, grow in its intensity. In Pennsylvania the problem is pressing. This is due to the fact that in this State we find located some of the country's leading cor- porations. In these industries, producing the country's largest wealth, millions of men are employed. In order, therefore, to ascer- tain to what extent industrial concerns are taking care of their aged or superannuated workers, letters were sent to every corpora- tion in the State employing five hundred men or more. A number of other firms, with well known pension or retirement systems, were also canvassed. The latter, although not necessarily located in the State have nevertheless hundreds of workers here. The letters aimed to inquire into the various systems of superannuation now in opera- tion by the different concerijis. In addition,*^ information as to the number of employes, the number of pensioners, the amount expended on them and the total annual payroll, was solicited. Two hundred and fifty letters wer.e addressed to these concerns. Nearly two hundred of them promptly replied, stating whether or not they had any definite system, pensioning their old employes. No one will deny that the problem of the aged worker is of para- mount importance. This is "true in Pennsylvania on account of our highly developed industries. In view of these facts, it is rather sur- prising to see the remarkably small percentage of concerns that have actually established regular pension systems. (113) 8 114 This is even more astonishing when it is acknowledged by all indnwtrial leaders, that a pension system is a "good business policy." Furthermore, it is claimed by many employers that the system is doiilg much to reconcile the tAvo classes. It is generally argued that an established pension fund, reduces the extent of indus- trial discontent and cultivates instead efficiency and feelings of harmony and loyalty. The employes generally accept such a sys- tem with favor and thus bring the employer and employes together in recognizing a mutual interest. It is universally admitted that it has done much to eliminate waste and demoralization in industry, as a result of continued employment of men who have long outlived their usefulness. It may not be proiitable to enter into an exhaustive discussion of the motives for the establishment of such systems. SuflSce it to say, however, that it is generally agreed by all students, that while a few may have been inspired by humanitarian or philanthropic motives, the economic considerations play the leading part. Pen- sions are given not only "as a reward for faithful and efficient service" and "appreciation of the fidelity and honest service of the employe," but also, "as an incentive to further service" as is explicitly stated by many corporations. It is hardly probable that one of the chief purposes, as advanced by several students, in estab'- lishing a regular pension system, was to lessen the attractiveness of labor imions and make men loyal to their employers, rather than to one another or to any Brotherhood. Were this true, it has failed in its purpose. We have but to observe the growth and power of the Ilailroad Brotherhoods while contending with such systems for a long period in this country. However, Miles M. Dawson, in the U. .S. Department of Labor report of the Proceedings of the Con- ference on Social Insurance, held in December 1916, relates an instance when "A Canadian Railway Company which had not engaged to pay pensions, except at its pleasure, recalled retired employes to its service upon the occasion of a strike, on penalty of forfeiting their pensions. This involved depriving an old employe of the reward of a lifetime of service unless ready to dishonor him- self by betraying a Brotherhood of which he had been a member for a quarter century or longer.''- Neither can it be advanced that employers of labor have failed to adopt regular pension schemes in view of the expense involved. On the contrary, systems of pensions have proved ultimately to be inex- pensive undertakings. Pensions have come to be merely deferred wages paid as dividends in case of incapacity. This is not only the opinion of many students of the problem, but is even acknowledged bv manv industrial leaders. The President of a New York and Penn- 115 sylvania concern writes for instance, "Investigations on our part Lave developed the fact that as a rule under a pension system the rate of pay is inadequate." The Illinois Pension Laws Commission concludes in its 1916 report that "Whether the contribution to a pension fund be taken wholly from the employe's wages or salary, or be paid wholly by the employer, or be derived in part from each, these contributions are in-all three cases to be regarded as in reality a deduction from wages or salary. The existence of a pension system in connection with any position or employment is taken into account by both parties to the contract of employment, and that, broadly speaking, wages and salaries actually paid are in due course reduced below what they otherwise would be by the amount of the total contribu- tions from both the employer and employe to a pension fund. The employe will thus pay for his pension by deductions from his wages or salary, whether he is conscious of it or not. Indeed it is quite possible that with a sound fund in existence the reduction in wages and salaries may in time materially exceed the amount of the total contributions owing to the advantages of such a fund to the employe under present economic conditions. This consideration further emphasizes the advantage to the employer of having such a fund established."* That this is generally true and admitted by many may be seen from tne following report of one of the largest plants in the State. While reporting as having only forty persons on its pension roll, receiving payments varying from fifteen dollars to forty dollars per month, the company states that "it has always been the policy of the company that any employe growing old or employed to the end of his utility in the works shall not want in his or her declin- ing days." The letter further adds: "This fact is generally known by the employes and apparently works out quite satisfactorily and agreeably to the mutual advantage of the employe and the company.'^ •Illinois Pension Commission Laws Report 1916 pagre 282. 116 aS c- 9p O SJ O :& --a OS w S'O < SS S3 -s is " d 043+3 o g Mo ■■3 ^ M fe &; "-"S a a S a ppo. O (3 a sa t>.o o " ag a© O 03 "■a 3« :& o2 ■ 5 8 oi 01 " ^ a) 03 a . O DQ O u O 03 a ••^ A p ^^ °p ^ ^ (D O o3if -P • . m P p a S p o^ ca • ■a o.£ ° T3« O DO 9 IS -OKI O «4-< ■aaS 4J J> O «a-° «.£53 Sol's E S '"■*^ o lag pa ©■o to P 4^ Pi ►-. CD o S'-e 'S CO &• "is ^ o S.b qH P.O Sog,1 .2g"o CO p 03 P S - h OJ o ■fH Peg I) a a h •J CO °«ag fl a ft °a -« o'O'Bp ,■"•9,!? Ul U 'O O.P Pi 03 IB fO o o*^ P OQ J3 0.4i OOBg SESo ass S P to Re P.'S §■0 s| .32 fe to Q 03 „ cl S3 |>> l-S OS a 03 P p 03 &a as II .§ s Pi a a 6I§ -.si .$ DQ . ^P W.2 ■5 a P s 3s 6p ■sw 1. ^% ■It >"oi a*^ bOoQ Ol "So 03 -Oft ■ft "6 a ~ a s 0<, ^■SaS-ga aw .2 >. 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SB ^ o WO 3 C.2 a c; ^ •a a 4^4^ Ol S3.S 133 An analysis of these systems as shown in the preceding table brings many interesting facts to the foreground. (1) It is evident that these industrial systems are still in their experimental stage. This is brought out clearly by the f;ict that with only two exfe]>tions thi'y have all been established within the last seven or eight years. (2) They give no representation in the management to the employes, except when the employes make contributions (and even then not in all cases), and they are either under the direct control of the board of directors or by a board appointed by them. (3) The plans in use in Pennsylvania for pensioning wage-earners nearly always provide out and out service pensions with provisions made for the voluntary or compulsory retirement at a certain age. The fact that only four corporations have contributory systems emphasizes the difficulties confronted in such a system. These obstacles are: (a) Wage workers resent compulsory savings and are opposed to entrust- ing these to their employers', as they are in each case, (b) The instability of wage-earners employment necessarily makes any sys- tem of contributions complicated. Wage workers, unlike salaried employes, do not anticipate continuing long in the service, nor do many of them expect to be promoted. With the exceptions of Strawbridge & Clothier, Armour, and Morris and companies, Avhich have contributory systems, membershij) is, of course, not compulsory and applies to all employes, A^ith the exception of a few cases where a certain age or amount of wages is required for eligibility to membership. In one or two cases mem- bership in the Relief Fund of the Company is required. At least one company, while stating that membership to the Relief Fund is not compulsory, adds that "preference in laying off and taking on will usually be given to such members or persons offering to become such." However, most of the systems are not contributory and are generally "granted as a voluntary reward for faithful and efficient service and as an incentive to further service," to quote the lan- guage of a few concerns. With reference to the age of retirement it appears that while seventy years of age is everywhere set as the maximum period of service, a number of concerns have more liberal provisions. Prac- tically all provide that employes may retire at sixty -Ave at their own request or at the discretion of the company. A number of concerns even provide for retirement at sixty, and some at fifty-tive. That female employes cannot be continued the sanie length of time in the service as male employes is apparent from the provisions made by the several companies which employ female labor, for an earlier retirement. While seventy years of age is set as tlie general compulsory retirement age for men employes, sixty years, with one exception, is the highest age set for women workers. 134 Continuous service is generally required in considering the period of employment, and leave of absence, suspension, or lay off for a period longer than six months, in the majority of cases, constitutes a break in this service and employes lose all credit for previous employment. rractieally all establisiicd systems base the amount of the annual pension \ipon u certain percentage of the employe's wages. Gen- erally, it is computed by taking one per cent, of the monthly wages for the last ten years and multiplying by the number of years of service. Four concerns, however, have a two per cent, basis while Morris & Company has as high as a two and a half per cent, basis. Others have a straight sum of about |15 to |20 per month. With the exception of Armour & Company — whose system is only for salaried employes — and carries a restriction of five thousand dollars per annum maximum, the general limit of a pension is one hundred dollars per month, and in one case at least only fifteen dollars per month. The minimum amount generally allowed varies from 18.40 per month in one case to |30 in another. The average being about .$20 per month. The question of providing for the stability of the fund is a very serious one. It is obvious that when no contributions are made by the employes, that the company should provide for all deficiencies. In most instances the corporations guarantee the payments to all those already on the payroll or to those who may soon become entitled to it. In a few cases as that of the United States Steel and Catnegie Fund, where a .|12,000,000 fund is established, pay- ments of peiisiojis are, oi' course, secured. A number of concerns, however, stat(,' that the company "reserves the right at any time to withdraw or modify this grant." While a few concerns not engaged in A\ar industries may not feel able to continue pensions "particularly in war times," as is expressed by one well knpwn con- cern which was engaged in the production of non-war essentials, with the great majority of large Pennnsylvania concerns there can be no doubt of the company's abilitj' to pay its pension. Indeed as one large concern in the Eastern part of the State points out "We feel the need of something better than this but any adequate system would impose a burden which, while it could be easily car- ried as times are now. would be crushing in times such as we had before the war."' This concern further adds that "We have for many years paid pensions to a few of our employes who had served long periods with our concern. We have no regular system for this, however, and during the business depression prior to the war, which hit us severely, we had to suspend payment of these in some cases." 135 That this situation is fraught with the greatest danger is obvious. Co quote Mr. L. W. Squire "The question naturally comes to the Qind of the thinking working man: What is the measure of the lisappointment of the scores, perhaps hundreds, of employes of the ;orporation who were looking forward to pensions for the support )f old age and are now helpless and unprovided for? Such a con- iition is analogous to that of the crew of a vessel who, after a ong hard voyage over dangerous seas with food exhausted, nerves •acked and strength almost gone, have only one hope left, — that of speedily making an hospitable harbor; but alas, find themselves shipwrecked upon a barren island." Only one concern purchases mnuities from a reliable insurance company, and those that have Bstablished funds generally provide for a reduction in the annuity basis if the annual expenditures exceed the sum allowed for that year. It is evident from our analysis that most concerns take care of those who become incapacitated regardless of age. Definite proof of incapacity by the company's physician is generally specified. In a number of cases these are dealt with individually by the boards ; a few have special allowances while others have no provisions at all. Although a shorter peiiod of continued service is frequently required in this case, it is, nevertheless, specified. The period varies from ten years in two establishments to twenty-five years in another. The sum allowed for this irregulai- pension is ge'ierally determined in the same way as the regular one i. e. by computing a percentage of the monthly wages multiplied by the number of years of serv- ice. Special allowances, however, are provided in a few instances and in one case it is "determined after consideration of all circum- stances and length of service." In those concerns where systems of relief funds are also to be found, cases of total disability are, of course, taken care of. Where no such systems exist and where an employe has not served the required time — unless his case may come under The State Work- men's Compensation Act — there is evidently no relief. The granting of a pension ordinarily does not debar the pensioner from engaging in any other business. But in a few cases the amount of annuity varies inversely with the income from other sources. That it would, however, be practically impossible for any employe to follow the line of work he could do best and to which he was accustomed, is obvious from the provision made by practically all concerns that he cannot engage in any other business which may be prejudicial to the company's interests. Nor may he be further engaged by the same company. This provision would seem also to allav the fear of some people of the possible competition of the nensioners. Although isolated instances are related of retired old 136 men who accept jobs for less money, because added to their pension their wants are more readily satisfied, it is hardly a problem with the industrial pensioners who ordinarily spend all their life-power before retiring.* At any rate the fact of receiving a pension would hardly make one a more dangerous competitor in the labor market than if one were left starving at the age of sixty or seventy and was still able to perform some useful labor. An indication of the length of time usually in service before one is retired on a pension may be seen from the following table. It includes all the retired employes of the U. S. Steel Corporation and subsidiaries, since its establishment in 1911 to 1918 inclusive. Table No. 67. Years of Service With The U. S. Steel Co. by the 3,341 Pensioned Employes. No. of Years Number Per cent. 1.43 10.41 18.18 30.53 18.17 11.84 5.80 3.44 .20 0. of Y^ears Numb 6 to 10 -IS 10 to 15 348 15 to 20 007 20 to 25 1,020 25 to 30 604 30 to 35 398 35 to 40 194 40 to 50 115 50 & over 7 3,341 100.00 It will be observed that only 1.43 per cent, were employed less than 10 years before retirement; 28.59 per cent, were in the service between ten to 20 years, while 48.7 per cent, were employed from 20 to 30 years, and 21.28 per cent, served more than 30 years before they were retired on a pension. It may also be of interest to add that of the former employes receiv- ing pensions from the U. S. Steel and Carnegie Pension Fund, more than 17 per cent, come from the departments directing the manage- ment and superintendence of the various concerns. Only about 21 per cent, of the pensioners are listed as common or unskilled laborers. The rest represent the skilled and semi-skilled groups. The insignificant total number of employes on pensions in this greatest industrial State and the small sum expended by the concerns •The following comment by the manager of the U. S. Steel and Carnegie Pension Fund con- firms this. In his report for the year 1917 he states; "of the number relieved from duty in 1917 because of physical incapacity, 15 per cent, died in 1917, indicating that they had giyen their full measure of loyalty to the service." 137 which employed them, stand out very noticeably in table no. 66. The number of former employes receiving pensions when compared with the total number employed at a particular time is negligible. Of the concerns from whom information was obtained, with regard to the amounts spent on pensions and on their total payrolls, the former is found to exceed one per cent, of the latter in only two instances. With the majority of concerns, the expenditures on pensions amount to less than one-half of one per cent, of their annual payroll. Many of the concerns having regularly established pension sys- tems state that they are governed in granting pensions by the "char- acter and quality of service," and provide for increases in "especially meritorious cases." A large number of these concerns have also quite elaborate relief, sickness and benefit insurance schemes. All concerns are explicit against any inference of vested rights or priv- ileges granted to employes by the pension. The companies always reserve the right to discharge an employe or terminate a pension for violation of any of the company laws or gross misconduct and so forth. It may be interesting to observe the great variety of industries which have established regular pension schemes, as is apparent from table no. 66. There are pension schemes established not only by Iron & Steel, and similar concerns, but there can be found included also Packing Companies, and at least one department store, and one Insurance Company. Although the industries enumerated in the above table are the only ones in the State having established definite systems of pension- ing their old employes, a great many more concerns report that while they have no regular provisions, individual measures have been adopted to take care of superannuated and faithful workmen. These companies deal with each case on its own merits and while not having any basic principles to depend on, generally follow cer- tain well marked out lines. Thus one corporation reports: "In the past whenever any one has been in continuous service for twenty- five or more years and has arrived at the age of seventy he is pen- sioned on half pay. This does not apply in every case, as there are some less important cases which will receive perhaps one-third pay." Another one states: "Whenevei' any one of our employes is inca- pacitated we feel it is an obligation of ours to take care of him or her, whether they have been in our employ five years or fifty years. We therefore, have no definite plan, but take care of each case indi- vidually. At the present time we have fifty-four who are pensioned and the amounts paid to them vary from $5 to |10 per week. We consider that our stock plan is more of a pension system than any- thing else, even though it is not recognized as such and the employes 138 participate even before tliey become incapacitated. Nearly al] of oui* employes who have been with the Company for ten years or more have been allotted stock of the Company which costs them absolutely nothing, the stock being paid for by dividends. When the stock is fully paid the dividends are paid to the beneficiary but the stock is held in trust for the individual for, a period of flf- teen years. If the employe severs his connection with the Company for any reason, aside from illness or being incapacitated he will receive the par value, and the stock reverts back to the Trustees. If the employe dies or if incapacitated the stock is then transferred to him or his heirs and becomes their personal property. We feel that this is a provision against old age that is better than any pen- sion plan we can adopt." The General Cigar Co. reports: ''We have in eifect a pension sys- tem payable generally after the service of years as follows: using ten per cent, of the last week's salary as a basis, one per cent, is added for each year's service. The time of retirement rests upon the judg- ment of the Superintendent in direct charge and subject to the approval of the officers of the Company." As very little variation can be found in these plans, it is inter- esting to find one concern reporting tliat: "This Company assumes all expenses in connection with group insurance which is carried on the life of every employe who has been with us for a period exceeding one year or more." In its letter to the employes which is attached to every policy, this Company states: -'In appreciation of past service and to indicate our interest in you and those depend- ent upon your efforts, we ask that you accept with our best wishes and free of expense, attached Life Insurance Policy issued by the Etna Life Insurance Company of Hartford, Connecticut, under arrangements where! ly the dependents of our employes are pro- tected under a special plan as follows: — "To those employed one continuous full year and less than two years, the amount of insurance policy .f.300.00. Two continuous full years or longer service |500.00. For continuous service thereafter an increase of |100.00 annually until the maximum amount of 11,000.00 has been reached." "In case of death of the employe his (or her) dependents will be paid in cash the sum noted above, in accordance with the length of continuous service the employe has given us." "It is important to say that this insurance does not in any way take the place of any payments to be made to you for accidents under Workmen's Compensation Laws." "If it is your desire to specially name any beneficiaiy your wishes in this respect may be indicated by filling out a card which wiU b? furnished for this purpose," 139 That the granting of a pension is still looked upon by some as a paternal offer to the worthy, although careless, children is evident from the following interesting letter which states that: "Our usual method of procedure is first to gi\'e an old and faithful employe very light day work without a reduction in his wages; this keeps him occupied, he retains his self respect; besides he is rendering some service and remains among his friends. When he becomes too old or infirm to perform any kind of work, we supply whatever money is necessary to keep him in comfortable circumstances. We have never ignored any old faithful employe." At the present the company has six on pension roll, payments varying from flOO per month to one person to |25 to another. The same president of the company tlieu continues to say that: "The Company does not bind itself to continue these pensions; in other words there is no contract with the employe but as stated above the Company has never abandoned an old faithful employe and has no intention of doing so in the future. We have to be extremely careful not ,to place a premium on lack of thrift. The thrifty men who are as a rule the best workmen do not require pen- sions; a number of our old employes have left us and become shop keepers. We realize fully that under the pi;esent arrangement a man who learns to take care of himself and provides for his old age receives no pension; on the other hand we feel obliged to assist those who are not unfortunate but are shiftless as regards their personal affairs." One of the largest plants in the .State reports that : "We consider each case individually, giving due weight to such factors as length of service, loyalt;f"of service, character of work employe was engaged in, number of dependents, present mode of living, age and general physical conditions at the time of application. The Company has on its pension roll at present about forty persons, payments varying from |15 to |40 per month with one or two exceptions where higher rates are paid." The Company has also a beneficial association which embodies no pension feature. "At the Johnstown plant of the Cambria Steel Company," reads another report, "the Cambria Benefit Association, an organization composed of our employes and operated and governed by its own directors embodies a pension fund into which 35 cents per month is paid by the members. Cambria Steel Company contributes to the same fund at the rate of 10 cents per month per member equal to about |20,000 per annum. The Company also contributes the cost of operation ; i. e. salaries, expenses, office supplies, etc., of the C M B. A. officers and clerks. This amounts to about .?14,000 so that the aggregate contribution by the Company is about .';';'>1,000 per annum. Last year's report of the 1917 pension fund, shows the 140 Total number on pension list Dec. ;J1, 1917, 145 Total amount paid in pensions for year, |33,10S Average pension paid per month from f20 to $30." Many rea.sons are given by the various concerns in explaining the absence of definite provisions for old age pensions. From the replies made, it is apparent that a great majority of large concerns in the (rotate are not only aware of the value of such a system but have also given a great deal of thought to the subject. Numerous con- cerns report of being not only "heartily in favor of establishing such a system" or "of the good work of the Commission" but many corporations have actually had committees studying the subject for months and even for years in a few instances. Where no reg- ular systems have been established, it is generally because it is believed by these corporations that it is more advantageous to them to deal with the individual as "such arrangement is a much better plan than any legal system because it gives the opportunity to nwaid real merit," to quote the president of one concern in Phila- delphia. Thi.s Company further assures us that "we always confer such benefits where we are assured that thgy are deserved by long services and fidelity," or as is stated in another letter "it is not established," because, "the number of our employes and the close- ness with which the oflBicers of our concern come in contact with them does not make a system advisable in our opinion at the pres- ent time." This method of dealing with the individual employe, used by so many of the large corporations which undoubtedly could afford the establishment of a regular scheme is seriously objected to even by many advanced thinkers among the employers. The principal objec- tion is best stated by L. W. Squire when he warns us of "the sus- picion among employes that favoritism and partiality may determine the fact and amount of pension, which suspicion seriously affects the contentment, loyalty and industry of workmen growing old in the corporation's service." However, besides the obvious difficulties which would be con- fronted by smaller concerns in establishing a formal pension sys- tem, there are many other reasons given which can be reduced in summing up to the following: H ) That the business has not been "running long enough to warrant adopting a plan of this kind." (2) That the working force is not stable enough and never stay long enough. This is particularly true of industries where many young women are employed who according to the reports, "either have a natural tendency to get married" or as stated by another concern of a similar industry that "being located in the heart of the coal region they marry when they reach maturity." This insta- 141 bility and greater labor turnover has apparently been increased by the war. Especially is this the case with the industries located near munition plants or ship building yards which caunot compete with the new establishments. One concern for instance reports that "As a matter of fact we are unable to keep them long enough that they would ever be entitled to a pension, owing to our proximity to Hog Island and other munition plants in this vicinity." Another company reports, "At the present time our force is greatly depleted, by reason of our help leaving for employment in the ship-yards, draft, and so forth." But it adds: "It has been ouv practice to pay our employes for what they lose in sickness and otherwise." The following report may also be very interesting; it slates: "With the wages we are now paying we think our employes well able to provide for themselves. Looks as though the bosses would have to be provided with old age pensions." That only the concerns employing wage-earners on a large scale can afford to establish well defined systems of retirement, is clear from our analysis of the situation. A number of smaller concerns state that all the systems proposed were "too complicated to be practical for their purposes," "that it required an expenditure on the part of the company which it could not meet." Many different objections are given with regard to the establishment of pension systems. Some of the most interesting ones are the following: A large shoe manufacturing concern states: "From a casual obser- vation we believe it is very hard to get a small concern to establish such a system. It would certainly require the co-operation from employes, as well as assistance in some form from the State. It might be necessary for the State to make this compulsory that the employe co-operate with the employer to establish such a system. It occurs to us that this ought to be a State affair and not left to small corporations to take up and look after. Small corporation.^ do not have the officers and equipment to devise and handle such !i system as far as our information goes." And not only is a state pension system advocated, but some go even further and advocate a national system. The president of a large glass company in the western part of the State says: "W;' believe in the pension system, but we think it should be a national movement, for the reason that any pension we would pay would necessarily come out of earnings. If the State undertakes to tax or otherwise enforce pension laws, it might Avork a hardship on manufacturers within the State, as the competition they would meet would probably be from factories located in other States where no such tax or expense was involved. If all States had the pension system it would put all factories and mills on an equality." 142 Ou the othei' hand, one concern states that "The persons to whom we give pensions and the amounts given to them have always been considered a private matter between ourselves and our former empldjL's and we thei'efore do not care to divulge this information." About tweui3'-live of the large concerns in the State report thai although they have uo regular pension provisions they always take care of each case. The following statements illustrate the typical ways and means employed and the general consideration given in providing for worn out, faithful employes. One corporation states that it "has made it a practice for many years to provide for men who are retired by reason of old age or disability who have been many years in the service of the company, provided, tiiey or their families are in need of financial assistance." A number of companies state either that "we do consider individ- ual cases when the circumstances are exceptional and we have a dozen or two .such people on our jiay loll"; or again "we have in soiiK/ instaiK'CK pensioned sujierannuated employes. None on pav roll at llie pi'esent in PennsyJvanJa" ; and furtlier "we are not a par- ticularly large company. In some cases they are retired on full pay, other.s half pay, and in other cases we give nothing at all, depending on tlie financial conditions of the party concerned." Jones & Laughlin Steel Co. reports that "Each case is talien up and decided upon its merits, depending upon the number of years employed and the fidelity and usefulness of the employe; some being retained upon 1he pay roll during their natural life and others being paid a certain per cent, of their earnings for life." Similarly, a nuniljer of others roport: "Each case stands for itself and pension is based on the length of service and fidelity of emi)loye" ; or that "We treat each case individually and consider this to be the best method." On the other hand, numerous concerns .state that "While we have been endeavoring to take care of our old emi)loyes we heartily approve of the general idea of this cliar- acter and would \)e pleased to hear if any general plan develops under j^overnmental regulations." And still many more concerns write that they ^,^-ould be very glad to "have you post us to what is being done." "to co-operate in working out a ]ilnn which would be practical" or "to receive any literature and report your Commission is issuing." One concern is guided in the granting of pensions to its employes by (1) number of years of service (2) number of years of continu- ous service (3) actual need of emploj'e and (4) amount earned dur- ing previous 1en yenrs of emjjloy. Another explains: "Where em])loye has been with us for many years, we handle the matter according to the merits of each individual case. Where they were unable to do work, a monthly remittance was made them sufficient 143 to their needs, and at their death, in each instance, a substantial check was given ample to cover funeral expenses and incidentals for a period thereafter." And further, another one reports that "The pensioning or retirement is based entirely upon a man's faith- fulness in the service of the company. Have at the present time nine men, some dating as far back as January lllth, 1918, who receive half pay." That each system must be adapted to the particular character of the concern may be evident from this letter which states: "We have been for some time working on a system which would fit into our case better than any system used by others." About fifteen large concerns report that although they have neither a regular pension system nor definitely marked out princi- ples by which they take care of their old employes, they still make an efCort to keep their superannuated workers till the end of their days by providing easier work for them. Thus one company find- ing that an "employe cannot be utilized in one position," tries to find something that he could do, "so as to help him along" but always, only "when a man has been faithful and with the company for con- siderable length of time." The work given to such men is stated by another one to be such "as watchman, gateman, etc." One company reports that it is their habit "to place our men in so called pension jobs ratlier than relieve them from all activity" and it adds, "There are a few such men at this plant who seem to be contented and happier when occupied." The following are typical methods applied. One concern "arranges for a transfer to a lighter occupation or retirement with a satis- factory bonus basis optional to the employe." Another one "made it a rule for all those aged in the service to make their duties such as would be easy for them and in nearly all cases continue them at the same wages they received previously, till death." The "oldest plant in western Pennsylvania," reports that on account of its location, "in a small town, most of our employes have been with us for a considerable period of time, the majority of them, however, leaving us at different times to take employment elsewhere and afterwards returning to us." This company takes care "of old employes incapacitated for regular work by creating jobs for them around the plant, paying them flO per month whether they work or not, unless absence is caused by drunkeness, or volun- tary absence. Most of these men are away about thirty per cent, of "the time under pay. Where they cannot do even this they are retired at -$15 per month." It is evident from our preceding summary that for the great majority of large concerns in Pennsylvania, the problem of whax to do with worn out wage earners, has been, and still is a real one. 144 Numerous concerns have committees working on this subject at the present time. In a number of establishments where a regular sys- tem was deemed impracticable or could not be afforded, different measures such as a transfer to lighter and easier work or some definite plan for the care of superannuated employes were resorted to. It is also obvious, however, that in spite of the admitted signifi- cance of the problem by many of the far-sighted corporations, it can hardly be expected that the industries themselves will solve it. Although generally considered of paramount industrial importance, we still find somewhat more than seventy large concerns in the State, to whom our letters were addressed, replying that not only have they no regular system of relief for their old workers but that they have never considered such plans; and, judging from the meagerness of their replies, are apparently not interested in the problem of assist- ing and providing for their faithful but old employes. It may not be amiss in this connection, to give an idea of some of the other forms of relief and benefit associations which may or may not include old age provisions, established by many large indus- trial concerns in the State. The following few may be selected as typical: A well known cigar company reports of this plan: "We encourage the purchasing of stock in this Company, as a means of providing for old age. This stock, while valued at considerable above par, is ofl;ered at par and payments are arranged for, accord- ing to the earning capacity of the eniploye. All employes who have been on our pay-roll more than two years are paid their full salary during any period of incapacity due to illness. In the event of permanent incapacity a special arrangement is made. Two cases of this kind were adjusted and in each case an arrangement of half salary was made. All married men are insured at Company's expense, for one, two or three thousand dollars based on length of service." Another concern reports: "In 1912 we distributed some $50,000 among certain mill employes of the Company for faith- ful and long continued service, who had been with us fifteen years and upward. The method used was based on length of service and the amounts varied from |2,000 to |500 each. While this did not establish a precedent, it is just possible that at some future time a similar distribution may be made." A number of concerns have either "an aid association whereby the men contribute monthly a certain sum and their estate receives an amount should they be injured or die" ; or as is reported by one, "There are two institutions here which operate for the benefit of injured employes and those who die during service. These are organizations with voluntary membership and are conducted by the employes themselves with our assistance." And again another 145 states, "We have three employes who served us faithfully for many years. We pay two of these at the rate of |1 per working day and 11.50 to one. We have given the matter a little thought but reached no definite conclusion, decided these simply as a means of express- ing our appreciation of the service the men had rendered to us." (2) RAILROAD PENSION SYSTEMS IN PENNSYLVANIA. The railroads were the first in this country to establish retire- ment systems for their employes. This is, doubtless, explained by the fact that railroad employes are very often required to be under -the most prolonged tension of both mind and body. Men in modem transportation systems are subject to greater hazards and wear out more rapidly than in many other branches of industry. With the rapid and unprecedented development of the American railroads, the problem of what to do with the superannuated worker loomed up earlier in this industry than in any other. Railroads in this country have therefore begun to establish private retirement systems at the same time when European governments have been engaged in instituting systems of public pensions and insurance. 146 S S OS 53 5§ s a o i3 A +J **-! O o >1 p>. Pi p< a g 05 5s 5a p. Q. 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Is 0,0! ^+3 s ol — 03 spills ill o « a ??,a^ 07i ? I'E"-' s- a§«| .£^s5|as if S JiS „, o •= sap' o ■S*h'^*^ cap, q Sses2g.l-aaS»s ■ssfc^'S3^o«'Eg 1 Jas""S?5ai as 2-335 a S" iii-iisi:i5i caSPfrHOdO '-'tor «bapo^s-9B»o| t^sg "asaq.a" £-ga'a»sSag<3 a a&i s o a a OS o a d • d H ^ fj v O a*" 33 a p 03 "(..a ag» git ag ^tuo" oScioo*H«rtd ,a>)034Ja O US t^W' O) 5 > : "a « . u-M ta 3 u — ■OS (D'O O c f" a a c „ O 0! O U fr B *" £S « is. s a sa Pitts- lines com- 1917. t> ^ ijis - 184 es west o Total lo associate ,804, Dec „S3 g ^ a •a" » .g - 1 O M4jS ^lia ^8 a OS XJ H M 1^ ,S •O 93 . ^g 1^ .2 8 a OS a Sa f6 1? Si sS ° fl « Oj o» s 154 The number of companies and the extent of pensions established by railroads in Pennsylvania are found in table 68. This table was ascertained from more than one hundred letters of inquiry — similar to the ones sent to the large industrial concerns — addressed to all railroads operating M'holly or partly within the boundaries of this Commonwealth. Of these, 8.1 per cent, responded. It will be observed from table no. G8 that the main development in railroad pensions did not begin until the early days of the pres- ent century. The Baltimore and Ohio Eailroad has, according to all the evidence, the distinction of introducing the industrial private pension system in this country. It established its pension fund in 1889 — the same year when the government pension scheme was adopted in Germany. More than a decade passed before the next railroad — The Pennsylvania — in this State, saw the necessity of following the example. The great majority of the railroads operat- ing wholly or partly in this State have established a regular system of pensioning, only within the last ten years. What is true of the industrial concerns is evidently true of all the hailroads, namely: the administration of these funds is either under the direct control of the board of directors of the various companies, or by a board appointed by them, or by the president of the railroad. The only exception to this is the Baltimore and Ohio Fund — which requires four years membership in the Belief Fund — and which is controlled hy the same executive committee as the lat- ter department. Such absolute control is readily explained by the fact that in no case do employes make any contributions to these funds, with the exception, of course, of the Baltimore and Ohio Rail- road. The payments are entirely gratuitous, on the part of the company, for faithful services rendered, and the funds are therefore controlled by them. As is the case with the industrial concerns, a compulsory and vol- untary age of retirement is provided also in the railroad systems. With but two exceptions the former is seventy years. The period of service required before an employe can retire on a pension is varied. It ranges from ten years with a number of railroads, to thirty years required by the Philadelphia and Reading Railroad. Where the shorter period of service is specified it is generally pro- vided that no person is eligible to a pension who enters the service after 40 or 45 years of age. In a few cases the age of eligibility to service is as low as 35 years of age. The larger period of serv- ice before a pension can actually be secured is obviously the pre- vailing one. It may be interesting to note here, the differences in the term of service required by the industrial concerns and the various rail- roads in ilie State. Twentv-five vcars of seivice is the maximum set 155 by the different industrial establishments. Many require twenty or fifteen years of service and at least two companies require only ten years of service. This is to be contrasted with twenty-five and thirty years of service generally specified or implied by the rail- roads. The explanation of this may lie not only in the fact that the labor turnover is much greater with the former, but also because railroad lines are more anxious and adapted to retain in the service, as long as possible, their experienced and well trained employes. With the exception of the Baltimore and Ohio Railroad, practically all the railroads have an identical method of computing the annui- ties awarded. Most of the railroads provide for 1 per cent, of tlie average monthly wages earned for the ten years next preceding retire- ment, multiplied by the number of years of service. Only the Buffalo Rochester and Pittsburgh Railroad Company awards a regular pen- sion equal to 2 per cent, of the average montlily wages computed ia the same way. With the Baltimore and Ohio Railroad Company, where membership in the Relief Fund is required, it is provided that "each pensioner shall receive a daily allowance, excluding Sundays, equal to one-half the benefits provided to be paid for sickness, under tlie Regulations of the Relief Feature, to a member of the class to which the pensioner would, while in the service, have been assigned under said Regulations, had he been required to become a full member ui' said Feature. In the case of a pensioner who has been continu- ously a member of the Relief Feature of the Baltimore and Ohio Em- ployes' Relief Association fifteen years, this allowance will be in- creased by the addition of five per cent, thereof; and a like addition will be made for each additional term of five consecutive years of 3uch membership.'' The following table shows in brief the amount of allowance to pensioners: P. ii a|s >s . s'^ Btf,- "^S- i'«13 t» -a £"§ og-a S" S g'o aiSB SSS iS^'S g.sl E-( 1^ ^ $0.25 $0.26J 62i $o.m 75 .V8J .825 1.10 1.37J [•hose contributing- under reliel feature to class E, 1.25 l.Sli Although a great number of establishments do not provide for sither maximum or minimum pensions, two hundred and fifty dol- ars per month seems to be the limit set for the former while five loUars per month is that set for the latter. 156 With the majority of railroad pension establishments, the differ- ence between the age when one is compelled to retire and the period when one may retire voluntarily on account of physical incapacity, is only a question of the last live ye;irs. Se\euty being the age of compulsory retirement, it is usually pro\ided that an employe may retire on account of physical incapacity between the ages of 65 and 69. The Buffalo, Rochester and Pittsburgh, and the Delaware and Lackawanna Eailroads provide for the latter retirement from 60 ou. A few companies, however, provide no age or service, and leave it to the discretion of the Board of Directors to decide upon the merits of the individual case. Only the Western Maryland Kail- road Company requires no definite period of service in retiring an employe on account of unfitness for duty. With most of the con- cerns, a period of twenty to thirty years of service is required before an .employe is entitled to a Company annuity. Excepting one estab- lishment, the method of computing the annuity on account of physical incapacity follows the same manner as the regular one, i. e. by multiplying the percentage of the monthly wages by the num- ber of years of service. Only three or four railroads make provisions, by means of pen- sions, for employes who have been injured and have become totally disabled while performing their duties. These few concerns state that an employe, in case of injury or total disability, may be pen- sioned regardless of his age or length of service. The majority of cc^mpanies, however, make no provisions for such employes before they have completed the required period of service. The railroad companies as well as the industrial concerns, gen- erally state that the granting of a pension does not debar an employe from engaging in any other business but further specify that he cannot re-enter the service of the company. The pension funds of the great majority of railroads are fixed at a certain amount. It is also provided by practically all of these that "when basis of pension allowance shall create demands in excess of the sums fixed, a new basis, ratably reducing the pension allowances, may be established." Some of the additional characteristics generally typical of these pension systems may be summarized as follows: In computing the length of service it is usually specified that "leave of absence, sus- pension or dismissal followed by re-instatement within one year or temporary lay-off is not to be considered a break in the continuity of service." Practically all companies "reserve the right to termi- nate pensions for gross misconduct" and "reserve right and privi- lege to discharge from service at any time any employe without liability to pension." Some state that "employes who are dismissed from or voluntarily leave the service of the company for any cause 157 i'hatsoever relinquish all claims to consideration or pension allow- mces." One states that "employes forfeit claims to pensions when eaving service under strike orders." The number of former employes on the pension rolls of the differ- i.t railroads in I'enit.sylvania is given in table no. 68. These were he figures prevailing during the Spring of 1918. The number of )ensioners on the rolls of the Pennsylvania Railroad East of Pitts- mrgh cannot be definitely obtained. However, associated in th(i idministration of the Pension Feature, besides the Pennsylvania Railroad's Eastern Lines are: the West Jersey and Sea Shore Railroad Company ; Philadelphia and Camden Ferry Company and lie New York, Philadelphia and Norfolk Railroad Companies. These employes are operating within the States of Pennsylvania, New York, [STew .Jersey, Delaware, Maryland, Virginia and the District of Columbia. At the end of December 1917, the total number of ?niployes on the pension roll in all these States numbered 3,801. .Assuming that most of these pensioners are residing in the State [ti Pennsylvania, it is obvious that the total number of aged employes provided with railroad service pensions in this State hardly exceeds i,000 men.* In addition to the railroads listed in the preceding table, the fol- lowing companies are subsidiaries of the U. S. Steel Corporation. The employes here participate in the benefits provided by the U. S. Steel and Carnegie Pension Fund. These companies are the Besse- mer and Lake Erie Railroad Company, Etna and Montrose Rail- road Company, Pittsburgh and Ohio Valley Railroad Company, Monongahela Southern Railroad Company, Donora Southern Rail- road Company, and Pencoyed and Philadelphia Railroad Company. The Waynesboro and Washington Railroad Company is governed by the rules and regulations of the Pennsylvania Lines West of Pittsburgh in its pension matters. The Chestnut Ridge Railroad Company operates under the system of the New Jersey Zinc Com- pany, an analysis of which appears in the industrial table. Fifty-five of the answers received from the roads having charters in Pennsylvania, state that they have no provisions for pensioning their employes whatsoever. This, however, is the case only with the very small or young railroads. To quote one general manager wlio is "personally very much in sympathy" with the plan, "this is a small railroad and thus far without sufficient earnings to admit of this plan." Another general superintendent writes, that "the idea is an excellent one and provides an outlet for superannuated employes that cause a great deal of worry to those in charge of ,-» this Tihase m.ay perhaps hp shed from another anffle of the Commission's work. •.Some I'snt "'!,,„ jji^prent ocCOTStions and their relation to the period of impairment, railroad Tn its Btndy "' ,.'^„„, " rf„™ the hlffhest accident rate, bnt of all oases InTestiffated not one impair- workers hare not "V''' Jt ,jj ^^■^f.^ words to continnity of service. The health and earning power ment was diie to ^^^^|^^ g^e impaired before BO years of age on acconnt of Bickness or accident. 158 organizations where men settle down more than they do with us." Reassuring us of his hearty co-operation in the matter he states the reasons for not adopting any definite system of pensioning, "Eailroad organizations like ours have a heavy turnover of employes annually; as railway switchmen are quite migratory in character and disposition and seldom stay long with strictly switching roads." Another letter states frankly: "Our net earnings for the year 1917, after payment of all expenses amounted to the small sum of fifty dollars." On the other hand, a number of even smaller railroads, although not having regular established systems of pensioning, report of individual schemes adopted or generally followed in taking care of their aged workers. Thus one railroad in the eastern part of the State while reporting that "the question of pensioning au employe is simply a matter for tlie consideiation and decision of the officers of the company," further advises that "at the present time this company has forty-seven pensioned employes in the State of Penn- sylvania who receive an aggregate of $884.29 per month. Another railroad with only one pensioner in Pennsylvania reports that "our pension sy.stem is discretionary and each case must be authorized by the board of directors." The letter further informs us that "generally speaking we grant pensions to employes who have reached the age of 70 years, and who have been in our service for 25 years. The usual basis for pension is determined by allow- ing the employe 1% per year for each year of service on his average annual wages for the last ten years." The Central Railroad of New Jersey, which reports of 45 pen- sioners in Pennsylvania, states that in their sj'stem "any employe who has been in the service thirty continuous years and has reached the age of seventy shall be pensioned. Employes between 65 and 69 years of age, inclusive, who have been continuously for thirty or more years in service and who have become incapacitated may be retired and pensioned. And any faithful employe, irrespective of age or length of service, who shall have received injuries in the performances of his duty which wholly incapacitated him for reg- ular or other vocation or who shall through sickness so contracted become so incapacitated, may be awarded such sum as a pension for such length of time as may be determined." Two or three concerns who follow no definite principle in their pensioning of aged employes report either that "this matter has been decided upon the merits of each individual case" or while stat- ing that they have "no regular pension system" assure us that "we do care for our old employes and those who may be incapacitated from continuing in regular work by providing such other employ- ment as is best suited to each individual case." 159 The small total number of railroad pensioners in this State, actually provided for in tlieir old age, when compared with the num- ber of workers engaged in the transportation systems in Pennsylvania is even more significant when it is apparent from our preceding exam- ination, that practically all the leading railroads, operating partly 01- wholly within the boundaries of this State, and a great many of the smaller roads, have some form or another of provision for their aged employes. The fact that only such a negligible number take advantage of these pro\isions can only be explained by the fact that before a service pension is actually a^^•alded, one must have lived up to the most stringent requirements and provisions. (3) TEACHEES' EETIBEMENT FUNDS IN ^ENNSYL^'ANIA The two primary fvmctions of old age retirement systems are: (1) The protection of the individuals and their dependents against the contingencies of old age and disability. (2) It provides a means of improving the efficiency and raising the standard of the services rendered, by eliminating from the service, the superannuated and disabled, who are no longer efficient, and by attracting better ability into the particular service. It is hardly necessary to point out, that nowhere are these functions of greater significance than in our educational system. It is of paramount importance that the best available talent and ability, and that men and women of superior kind should be attracted to our schools for the development of the moral character and ideals of our children. Similarly, no one, to be sure, will question the justice of providing our teachers — the moulders of the future generations — against the day when they are no longer able to provide for themselves. The problem of relief from superannuation is even more aggra- vated in the case of teachers. It is an admitted fact that our teachers are not adequately I'emunerated. In many instances, altho their wages are on par with the lowest compensated groups, a com- paratively high standard of living is required of them. Sufficient savint o«g al cfe.2 a 2^ jj ft oa g a >+3 9 ^ 12; E3 » O OJ .« •I- 8„a* ^ 03+3 E g 3-*^ ra'b pa >>ii S al =S ng as sg g2S| SS" lsS-3 03 O •w > ui,Q ^ '-ag a *-i -. a** 03 «S p §.2°. 03+* cG W a> a « fflS o » *3 a =.^ 13 h o a >> C I* «j ^^ rt*- ac^gOo +3+J P<*3 o O'O a .. i2 d o •g i C3 * s ^a iz; 5g M 1 si 03 g a Ph PM^ CO s « (^ d r-i M a *OT 11 i ^ .253 3 03 • (S S| e Bi n 2 g o B g CQ wl gg'H Is « Eh§ a 03 ■^ o 163 s O S4 in Not stated. 20. a s 8 CO S c CM g •5 bo If No age given; based on service. No compulsory age pro- vided; men at 66, women at 55. May retire volun- tarily if in active service after the required number of years. No age provided. oj to 4J o 13 C W i > br OS oj 03 Board of directors, consisting of 7 persons elected from the charter members by the teachers aimuaUy. Retirement board consists of 7 iwrsons. The presideiit of the board of school directors; 2 members of the board appointed by the president; the district bu- perintendent of schools and 3 teachers elected by the teachers. Retirement board consists of 7 members. President of board ol school directors; two other members of board; superintend- ent of public schools and S teach- ers, one elected each year by the teachers. Retirement board of 5 mem- bers. President of board of school directors. Two other members of board elected by the school directors and 2 teachers elected by teachers for two years. « o By retirement board, consist- ing' of 5 persans. The president of board of Bchool controllers. Two other members of board and S teachers elected by teach- ers. * r-t i a o "A i . 1% 1 ti to a Si a.b &^ = M Hi ^1 % Pittsb Retirem it was p 1917.) 4A s .S a .9 a s H o w fl CO DO (a 03 d a □ a tij o 5 » O ■t> " «" o sip aw g agl^i llfl .ps5 . G-p 0! ca oj ci.p.'ois 3 ° S > 6 03 g •H OS 3 033* t-, 03 03 d> § ® d** 1 >.S5.a ■3>- Is.- 3 a 8 |°d a §:-S s::i S'-gS SSgS ^ 0. ,. g S IP-^ 4J S-H O M >-s a sag o _, -^ Q ■3 us' g «• a s s s i < >i x t» III! a ^ f-, ^ u S ss^i S t^s« I •M a ki 11 ^ Is O a ^a ■3« 1 § S la • FN S a. 3 1 1 . Si a S 03 g ^1 11 •Si a ga 03a i ft K o ! i-( 04 00 1 10 © ?5 1 165 11^ SaSS as c3 ^^ em . S »»' a • S3 v SB J C8-B a a ■ «W rj to OS 34j a „ o 9 " u an ™ « " p §11 2 .3 3 a "J o loS'^ a O Pi 09 a pq Ci 3 ►^^ 'Oio o a.2 2 O to oi aba ti 9S t>i '3 ^ gas oil tn-^ 2 to E B a ^ a'CsS op, ■§ P.+J +J Opd "o •-t ^1 bio a "*£ P. *^ .p .. a ^ .-4J p rj tn£] H Q> to ta 2rp P o-^ g P K s a'O a> p »a ai (c - g Eaga .** 03 +> OJP. *^ ^ ^ 5,4) p >» •P S . o-"Sfe 9 ra^ s^"^ ("■=> "I 5 P 166 o O < > m H oc >-< OQ 25 O I— I CO :^ H td o < s o • a^ •H •M O S +3 03 t>i J3 E>i=a 1 CI a [>> to <1 go; td E> "a Si 03-0 > O n C/J t*. X3 =8 & t>> t>>3 1 3 s a Wl Tl IS a* >•§ 03 » . h rt to O H 0) - Q.03 §y •w O n o s-= 6 "^i^ ass S3 3 s-ss ?> tc 03 03 a a^«s &jq OQ ^ O.P-, '^%'S si ill cj 53 n "^ >. to P 6D I— l"H a Oft o3 P 3 ^ fl ■■ C a> 3 03 t>i fl a ° ^ "^ ftp. ■4J OS 3 T3 PI P a 3 (^ o « aa li ah So aa aa 03 O a U 03 ^ t-* s g o J5 •i a ^s I 3s 1 E Ph-S cog M Ph d ,-, « 1 ^21 •Ei 03 b On o B ja a . S-P 3 OS. 3 n SS ■sa ■^ 9 a" o§ ■^3 3 "3 03 0} 1^ a£ a a o q o3-g £1 9 167 w-a 1' 3 s sa •M a si 03 ^ OB'S H g Be=a 11 g d e8 ^ QM O m .+3 -a""* ^•S o Ssg eBMH o o tl 3 |a ■sg a ■»^ .a * a • a" « 03 „ o CO fx o ■<^ 01 J3 p Sd " art s o 5 rt 168 in 0« 5S5 _!« g t o'2 o 5S n o ! g a P-9 N.1 ij a ig 0: ^: 03 M fl 03 S J3 03 as CO o •62 ■a gi ■ga-. a fe ■SS'O § a §5 O 3 a 6 ia . JES S 03 PJ F-1 lU o o S.|2 U S D u a a) "^ "^ bOT) ^ „' ■ Q S "^ is s| g" -^ ^ P > « to Mtmagg •H*^ m £3 o « " ^ &-S s Bag" g O a ta " ^i'" p. oS.gg - be- ■ag S.S S 03 g 03 w s .g o3 s a i= O a o t4 o J3 JS S g = . a ^^ > > S "S 03 ?, a M gs« ea ca g 2f >S<,= '' i ^ « * a «S 'S -p a 'o 6 S° -it •-.■&^i- £.1 bS to ^S "^-7 .SJ oj a _ 3§ o'' as g H c 1-3 d «tH ■■ to ^ t-, m oj 0) 4^ C).n IS n !fg otas sS !^ "= p»i S !>• -1 ti-a "is ■a - t-l (3 e*«»-t S 3 I" go St •203 03. 3 E S a « 3 fi'g ^s 2 o ■S m H m "A O H W o H a o J3 s a CES ■0\ s& th Pitts- awaiting adequate Prior to with no -,■« g o> t... a e'^'Zg-sa " a if .9 8 Is .9 of^S^^ o ^3 +a rt S ? -^-^•s-s «1 1^ lis"^i as -1 03.2 4^ a« i3 3 tii]"+3 " ^^ aju „, Gil 5 >. 6 ii a o (-i |SagS». SSSHS g »a 3^ •3 a S-g.2 3 S '-' p. €a 171 A summary of the existing funds now in operation, as found in nble no. 69, reveals the following: The administration of the different retirement funds is generally r. the hands of a retirement board consisting of five or seven mem- •ers. As a rule these boards are controlled by the Board of School directors and the superintendents of the different schools. The ■epresentation of the teachers on these boards usually consists of wo or three persons depending whether the board is composed of ive or seven members respectively. In Lancaster, however, the seven members of the Board of Directors are elected annually by :he teachers from the charter members. The Erie plan, established n 1916, — the last one adopted in Pennsylvania — vests the manage- nent of the Retirement System in a board of five members, "two nembers elected by the Retirement Association, the chairmen of the committees on 'finance and property' and 'instruction' of the Board )f School Directors and one other elected by these four." Where the age of retirement is fixed, it is generally between 60 md 65 years. A somewhat lower age period for women is often provided. Thirty years of service, twenty of which are to be in the local school district, is generally required in order to be eligible for a retirement annuity. The City of Lancaster, however, requiies a period of thirty-five years of service, twenty-five of which are to be in the Lancaster schools. On the other hand, in Pittsburgh, only twenty-five years of service were required, while Erie and Altoona make no specification as to the minimum number of years in serv- ice necessary for retirement. Scranton and Williamsport require Duly fifteen years of service in the local schools out of the thirty vears of service specified for retirement. With but one or two exceptions, membership to these funds is compulsory for all teachers. The income of the retirement funds is in practically all casPK derived from three general sources. The contributions of the teachers themselves; appropriations from the different school boards; and whatever is derived from accrued interest, donations, legacies, bequests and so forth. In most systems the teachers' contributions to the funds amount to from 1 to 3"^ of their animal salaries. These are usually graded in accordance with the number of years in the service; the contribution being highest for those longest in the service. Erie teachers however, pay as high as 5% of their annual salary, the minimum being .|35 per annum. In Scranton all teachers contribute |15 per year irrespective of serv- ice. Teachers in Lancaster and Reading pay straight sums varying From five to fifteen dollars per year in direct proportion to their :„« r»Ti1-iT nr> tho Pitfshnrcrh Tenphers' 'RptirpmeTi+ 172 Fund, which was abandoned early in 1917, did teachers make no contributions whatsoever. In that city, the Board of Education paid a flat pension of live hundred dollars per year after twenty- live years of service. The appropriations of the different school boards to these retire- ment funds are usually, "an additional amount equal to at least the amounts contributed by the teachers." A number of school boards also provide an appropriation sufficient to cover the expense of administering these funds. Before a teacher can retire on an annuity, it is practically every- where specified that he or she must have made at least twenty-five or thirty annual payments to the fund. When this is not the case, the amount of contributions, still unpaid, is deducted from the annuity. Six cities provide pension annuities equal to one-half the annual salary at date of retirement. Some cities however, pay straight sums ranging from three hundred dollars to fiive hundred dollars per year. The pensions of Altoona teachers are computed by tak- ing 2% of the average pay for the last ten years multiplied by the number of years of service. In Erie there are two classes of mem- bers. Class A, — those in the service on or before June 5, 1916; and Class B, — those entering the service after June 5, 1916. A mem- ber in Class A, "retiring at age of 60 years or over, shall be entitled to receive from the annuity fund the annuity purchasable by his contributions, with regular interest thereon, together with an equal amount from the pension fund ; and if such member shall have served in the public schools not less than fifteen years immediately preceding retirement, or in the case of such a member whose total service in the public schools of Erie is not less than thirty years, at least ten of which shall have immediately preceded retirement, he shall be entitled to receive from the pension fund an additional amount sufficient to make the retirement allowance equal to the annuity that would have accrued if he had made thirty contribu- tions not in excess of |100 each at the rate of 5% of his average salary for the five years immediately preceding retirement if such sums had been invested annually at 4% compound interest; if the amount so computed is less than $300, the retiring member shall be entitled to receive from the pension fund an additional amount sufficient to make the total amount $300." A member in Class B, "retiring at age sixty years or over, shall be entitled to receive from the annuity fund the annuity purchasable by his contributions with regular interest thereon, together with an equal amount from the pension fund." A minimum and maximum amount of annuities is established in maiiT cases. The lowest minimum is found in Williamsport with 173 $250 per year, while Pittsburgh has the highest with |500 per year. The maximum annuity set, varies from $300 per annum in Reading, to |1,000 in Philadelphia. In case of mental or physical incapacity partial annuities are generally provided. These are computed by taking as many thirtieths of a full annuity as the number of years of service. A minimum period of service is usually required even for the grant- ing of partial annuities. This latter period varies from five years in most cities to twenty-five years required in Lancaster. In practicalljr all retirement systems, provision is made for both compulsory and optional retirement age periods. The latter is usually given at the discretion of the Board of School Directors, during the five years preceding the compulsory retirement age, to those having fulfilled tlie necessary period of service. Besides the cities enumerated in table no. 69, there is also a Teachers' Retirement Fund in Chester. The only information secured from that city is that the age for retirement is sixty years and that "there are at present four teachers on pensions. Two receive annual pensions of f357.24, one $359.16 and another one 1312.60." "At the present time," writes the superintendent of schools in Pittsburgh "we have no. Teachers' Retirement System in operation in connection with the Pittsburgh Public Schools, but the Board of Education and the teachers are awaiting the making vital of the present State Teachers' Pension Law by an adequate appropriation at the coming session of the State Legislature." "Prior to January 1st, 1917, we did have a pension plan whereby teachers who had been in the employ of the Board of Education for at least twenty-five years were eligible to retirement, by the Board, on a flat pension of |500 per year, — the Board of Education paying the full amount out of the general school funds." "No rules were made governing the operation of the above plan. Each case was acted upon on its own merits, and a teacher was permitted to retire only when tlie Board approved of such retire- ment, and when retiring the teacher was placed upon our pension pay-roll at the rate of |500 per year, — which amount was paid to the teacher in twelve equal installments." "At the present time we are now carrying on our pension service list, one hundred and five retired teachers to whom we pay .152,500 per year in the aggregate amount." In Philadelphia, besides the regular retirement fund, there exists also,, the Elkin Fund, a private endowment, administered by the Board of Public Education. "Under the provisions of this endow- ment as thus administered, unmarried female teachers who have served at least twenty-five years in the public schools of Philadel- 174 phia, and who are physically or mentally incapacitated for teach- ing and whose private income does not exceed four hundred dol- l.a-s, may lie retiied upon an annuity of four hundred dollars." The rules and regulations of the Itetirement Fund also provide that "supplementary annuities which shall not exceed four hundred dol- lars may at the discretion of the Retirement Board be given to con- tributors who shall become annuitants under the Elkin Fund; but shall in no case exceed the difference between four hundred dol- lars and the total private income of the annuitant from any source or sources whatsoever other than the Elkin Fund annuity." Among the other general characteristics of these funds are the following: Annuities cease upon marriage of an annuitant or on recovery from disability. This usually does not apply to annui- tants retired on length of service. It is also generally provided— as is the case with most private pension systems — that in case of insufficient funds, a pro rata reduction in annuities may be estab- lished. There may be little gain in further discussing the merits or demerits of these funds. The success of these retirement systems may be evidenced from the following facts. Since the Act of Assembly of 1907, only twelve cities in Pennsylvania have established systems of retirement funds for their teachers. The one in Pitts- burgh was dissolved early in 1917. The superintendent of schools in another city states "that the fund is not sufficient to take care of the whole number of teachers in the city who ought to be receiv- ing pensions." From an actuarial survey made of the Philadelphia Fund, writes an associate superintendent: "Tt has been found that it , will be necessary to revise the provisions of the fund in order to place it njion a sound basis." At a meeting held in October, the teachers' representatives of the Erie Eetirement System "spoke in favor of joining the State body as the latter offers several advan- tages which can never be duplicated by the Erie School District" The efficacy of these funds may also be apparent from the fact that the total number of teachers receiving pensions, in one form or another, during the winter and spring of 1917, did not exceed 624 (including Chester).* The total annual amount expended on these was approximately S2S-t,2.^7.64. The inadequacy and deficiencies of the systems in operation at present are generally recognized. Tt is as a result of this recogni- tion that the Legislature, in 1917, established a state wide system of Public School Emploves' Retirement Fund. ♦Tn fidrlitiOTi to this nijmber thpre were also In 1917. thirty-one tedohers in the State receiT- injr ppn=iions from the Cainegie Foundation for the Advancement of Teaching. Tliese pensions are ffivpn only to teacliers in colleges, tmiyersities,' technical schools and so forth. Tm The provisions of this bill, which becomes operative July 1919, are summarized as follows:* "The act establishes a Retirement Sys- tem for teachers and other employes of the public school system of the Commonwealth of Pennsylvania. The system will include: "1. All 'present employes' who are not members of existing local retirement systems maintained wholly or in part from appropri- ations or public moneys and who elect to become members of the State system prior to July 1, 1919. "2. All 'present employes' \y\xo are members of local systems and who elect through a two-third vote of the membership of the local association with the approval of the local school board to merge the local association with the State system. "3. All 'new entrants' (i. e., those who enter the service after July 18, 1917) who do not become members of local retirement associations. II. HOW THE SYSTEM WILL BE MANAGED. "The management of the system is vested in a Eetiiement Board, which is assisted by the Board of School Directors by whom the employes are paid. "1. The Retirement Board is to be constituted as follows: (a) The State Superintendent of Public Instruction; (b) The State Treasurer; (c) One member appointed by the Governor; (d) Three members of the Retirement Association elected from among their number; (e) A seventh member not an employe of the public school nor an officer or employe of the State to be elected by the other six. "2. The chief duties of the Retirement Board will be: (a) To keep the system actuarially sound; (b) To invest and manage the reserve and savings funds created by tlie act; (c) To grant retire- ment allowances as provided by the act. "3. The chief assistance rendered by the school directors will consist in: (a) Furnishing the Retirement Board with the infor- mation and records as required in the act, and (b) Making the deductions from salaries of employes certified by the Retirement Board. III. HOW THE FUND WILL BE MAINTAINED. "The funds of the system are to be established upon a reserve basis the cost being divided between the employes, the State and the school district as follows : "1. Contributions hy the employes. (a) The employes who become members of the Retirement Association will be required to ij^om a summary by OliTer P. Comman, Chairman of the LegislatiTe Committee of the State Kdacatlonal Association. 17t) pay a definite percentage of their yearly salary.* This percentage will be determined by their sex and age at the time they begin to make contributions. The rates will vary from slightly more than tliree per cent, to nearly seven per cent. "(b) The rates of contribution will be computed by the use of mortality tables, interest tables, and other actuarial data. The initial rate paid by the employe will continue unchanged until retirement unless it should be altered at the time of actuarial reval- uation which are provided for in the act. "(c) The rate of annual contribution for each 'new entrant' must be such that when 62 years of age is attained the reserve accumulated in the individual savings account will be sufficient to purchase approximately one-half the retirement allowance which is provided for the employe by the terms of the act. The cost of that allowance is determined by the average final salary upon which it is based and upon the length of time the annuity will be drawn as shown by the mortality table. "(d) The rate of contributions of employes who have 'prior serv- ice' at the time the act goes into effect must be such that their accumulated savings fund will be sufficient to purchase one-half of the superannuation allowance due on account of future service, and the State and school districts will provide the total retiring allowance due to the prior service. "(e) Employes whose rates of contributions are over 5 per cent, have the option of T-educing the rate to 5 per cent, and receiving at retirement the proportionately smaller annuities that their sav- ings will purchase. "(f) Employes' contributions are placed in the distinct and sep- arate fund, called the Annuity Savings Fund. Each employe's contributions are placed in his or her individual account and may be withdrawn if the contributor leaves the service without purchas- ing a retirement allowance. "2. Goiiirihiitions hy the State and school districts, (a) The State and the school districts will each pay one-quarter of the cost of the superannuation allowance which is dependent upon service rendered after the bill takes effect, and they will each pay one-half the cost of the superannuation allowance dependent upon service rendered prior to the establishment of the retirement system. "(b) The State and school districts will each pay one-half the cost of that part of the disability allowance which the accumulated deductions of the disabled employe do not provide. "(c) The contributions of the State and of the school districts will be made in the folloAving way: Contributions for employes in ♦Contributions are not to be paid nor retirement allowances computed upon that part of ttie salary of any employe -which is in excess of $2000.00 per annum. 177 service at the establishment of the fund will be provided for by a series of payments amounting annually to about 5.6 per cent, of the pay roil of those who contribute. This will distribute the accu- mulation of "State Annuity Reserve Fund No. 2" over about thirty years after which time this contribution will be no longer neces- sary. In addition there will be provided a certain percentage of the salary of each entrant into the service after the retirement system is established. What that percentage shall be will depend upon the age at entrance. Assuming an average age at entrance of 23 years for the entire service, the contributions thus provided would amount annually to about 2.56 per cent, of the salaries of men entrants and 2.80 per cent, of the salaries of women entrants. "(d) The contributions of the school (Jistrict on behalf of those of its employes who become members of the Retirement Associa- tion may be made indirectly; the State being authorized to deduct the amount due the retirement systems from the total State appro- priation for schools due the local district. The school district, therefore, will not be required to make its contribution from the money raised by local school taxes. "(e) The State will contribute the administrative expenses of the system. IV. THE CONDITIONS OF RETIREMENT. "The benefits accruing to contributors to the system and the age and other conditions of retirement are as follows: "1. Superannuation benefit, (a) Age for retirement: A super- annuation allowance is granted upon the application of a con- tributor who has attained age 62. Retirement is compulsory at age 70. "(b) Amount of allowance: The amount of the allowance is equal approximately to l-80th of the average salary* of the ten years immediately preceding retirement, multiplied by the number of school years the contributor has rendered service in the State. Should the employe where the rate exceeds 5 per cent, elect to reduce his or her contributions to 5 per cent, the amount of the allowance provided by the employe is reduced proportionately. The employe may elect also to take a sinaller allowance and pro- vide that it be continued to dependents. Provision is made in the act for other options of equivalent actuarial value. "2 DisaUUty benefit, (a) Conditions of retirement: A disa- bility allowance is granted to contributors who are found by exam- ination at any time after ten years of service to be physically or — ,^ i. _. .TO not to be paid nor retirement allowances computed upon that part of the Bala??"ot"ny employe which is In excess of $2,000 per annum. 178 mentally incapacitated for duty. Employes drawing disability allowances who are under 62 years of age must submit to periodic examinations to determine whether disabilities have been removed, Those who recover are to re-enter the service or to have their allow- ances reduced. "(b) Amount of disability allowance: The amount of the benefit is one-ninetieth of the average salary* of the ten years immediately preceding retirement, multiplied by the number of years of serv- ice that the employe has rendered. The minimum allowance is 30 per cent, of final salary except that it must not exceed eight-ninths of the amount of which the employe would have received had he or she remained in service to obtain a superannuation allowance. "8. Refund benefit. To contributors who leave the service with- out a retirement allowance, or to the estate of contributors who died in the service, full return of contributions is made with four per cent, compound interest. Contributors may elect, in lieu of the refund benefit, an annuity or deferred annuity of the actuarial equivalent of their accumulated contributions." This new system, although claimed to be "one of the few in this country founded upon a scientific basis and built up in accordance with the most modern principles of finance and legislation," is criticised by some students with regard to the following: It is claimed that the allowance, consisting of 1-1 60th of the final salary for each year of service, is open to objection because the taking of the final salary only as the basis, exposes the system to abuses. It is also argued that the provision that the State shall be reim- bursed by the employers of the teachers to the extent of one-half paid by it to meet the future cost of pensions, while primarily intended to interest the local employers in the welfare of the teachers and to distribute the cost is exposed to the danger, that since the State may reimburse itself out of money due to local educational authorities for school purposes, the school expenditures may be crippled to that extent. Students of the question also point out that if the State desires to share the cost in the system it should not have been done at the expense of the schools. The fear is expressed that the burden of the expense may tend to discourage local authorities from raising the salaries of teachers and lead to the employment of only low salaried teachers, and to this extent, negate one of the prime principles embodied in the entire system— the attracting of better ability. Admitting these shortcomings and imperfections it is evident, however, that any form of a state wide pension system is superior to individual local funds. The teachers everywhere in this State *Contributions are not to be paid nor retirement allowances computed upon that part of the salary of any employe which Is in excess of $2,000.00 per annum. 179 are, from all evidences, heartily in favor of the new system. The poi)ularity of the new act may be seen by the fact that by February, 1919, ten out of the twelve local teachers' retirement funds have merged with the State Fund. The others will probably have joined before this report is out of press. In addition to the local funds, 30,000 individual teachers had made application to join the fund by the same date. The sentiment of the teachers now in the different local funds may perhaps be judged from the following replies made to our inquiry with reference to the same: The secretary of one school board writes: "Up to date our teachers have taken no action in the matter, but there is a very active committee urging the teachers to endorse the bill and go into the State Fund instead of continuing our present pension fund." "So far as my own personal opinion is concerned, I would say that there are many points in the State bill that are an advantage over the system that we have and I cannot see how our teachers ^^'0uld be injured in any way by going into the State Fund." Mr. Oliver P. Cornman of the Philadelphia Public Board of Edu- cation writes: "So far as I have been able to learn, the teachers and other school employes heartily endorse the Retirement System and a large majority of the 'present employes' will elect to become members of the Retirement Association. Philadelphia teachers will have to choose between revising their local systems (which will carry with it a considerable increase in the rates of contribu- tion) or merging with the State system. The matter of the State Retirement System has been placed before the 'other employes' of the Philadelphia system and a large portion of them have made application for membership in the Retirement Association." (4) MUNICIPAL EMPLOYES' PENSION SYSTEMS. From the standpoint of the taxpayer the problem of the aged municipal employe is of paramount importance. There can be no greater waste of the taxpayer's money than the retention, in our state and municipal service, of men who have outlived their usefulness. To continue in the employ of our cities at full wages, old men and old women, who are no longer capable of rendering efficient service, is not only a waste of money but in addition has a demoralizing influence upon the entire service. It is also a fact, only too well known, that, because of political influences, our State, 180 Gouuty aud City govermuents are burdened with an overwhelming number of superannuated workers who have lost their effectiveness in discharging their duties and who are known to be ineflftcient.* The constantly increasing volume of work and the introduction of new methods and higher standards of efficiency into the admin- istration of our municipalities, necessitate the establishment of some process which will relieve the municipalities from the "dead weight" imposed upon them. The establishment of such a system would, in addition, raise the standard and enhance the quality of the service rendered and attract better ability to the particular lines of work. As employers of labor, however, our cities cannot afford to set the example of discharging outright and turning adrift, or cart- ing oft' to the poorhouses, employes who have spent the best years of their lives in the service of the municipality. It is pointed out by some students that in the case of policemen and firemen, who are engaged in the most hazardous occupations — in the protection of the life and property of their fellow-citizens — that it is only a matter of justice that the city make some provisions against the day when they are no longer able to provide fot themselves, (even as the Nation provides pensions for its soldiers and sailors who hazard their lives in the Nation's defence.) Aside from the justice of the case, however, it is evident that what is recognized as "a good business policy" with private employers ought to prove of profit to our city administrations. The advantages of retiring aged workers on pensions is recognized by all progressi\e employers of labor. This is evident from the rapid development of these systems, within recent years, as discussed in the preceding pages. Practically all the leading cities in Europe have had pension systems for their aged employes. In the United States this move- ment is comparatively recent. It is hardly fifty years old. At the present time, however, every one of the eighteen cities in the United States having more than 300,000 inliabitants, has a pension fund *The following study iindertaken by the Massachusetts Commission on Old Age Pensions is enlightening : "The cost and waste of the present method in the city of Boston, as -well as the need and scope of a pension plan applied to the municipal service of the city, are indicated by certain returns prepared at the request of the mayor. "The returns show the following facts regarding the number of pensionable employes, their length of sei-vice . compensation and efficiency : — "The total number of employes over 65 years is 491; oyer 70 years, 168. The amount of compensation paid to employes over 65 is 1419,888.45; over 70, $273,000. The number over 65 reported as inefficient is 296. The compensation paid to this group is $200,194.35. "The percentage of inefficient employes among the employes over 65 years is strilcingly large in many departments. For example, in the cleaning and watering division of the street depart- ment 35 are employed , of whom all are reported inefficient ; in the cemetery department 16 persons over 65 years are employed, of whom all are reported as Inefficient; in the park depart- ment 27 are employed, of whom 24 are inefficient. "The period of service Is over 30 years in the ease of 119 employes over 65, or 25 per cent, of the total. Culy 5% or 42 persons, have been in the employ of the city less than five years. "The leading departments, in j-espect to number of pensionable employes, rank as follows; (1) paving division of street department, 109 over 65 years; (2) water department, 65; (3) sanitary division, street department, 68; (4) sewer division, street department, 47; (5) cleaning and watering division, street department, 35; (6) park division, 27; (7) ferry division, street department, 26; (8) cemetery department, 16." (Report of Mass. Commission on Old Age Pensions, Annuities and Insurance, pp. 270-1.) 181 for its policemen and firemen. The six cities with 200,000 to 300,000 inhabitants also pension their policemen and firemen. Nearly all the cities with populations between 100,000 and 200,000 have some form of pensioning one class or another of municipal employes. 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Not one of the third class cities has established such pro- visions for its aged employes. That there is, however, a strong desire and active agitation for the establishment of such funds is evinced from the replies received to our letters of inquiry addressed to the heads of the Police Bureaus. "In Erie," writes the Chief of Police, "the police oflflcers have an association known as the Police Relief and Pension Association' which is working to build up a fund to be used for this purpose. We are in hopes the State will do something for the third class cities along these lines in the near future." The Johnstown police "have collected f3,000 playing base-ball to be applied to this fund as soon as we can get council to pass an ordinance creating it." The Chief of Police in Altoona writes: "No effort has been made by the municipal authorities to establish a pension fund in this city and we would be very glad if your department would take the initi- ative in this matter." Harrisburg reports that it "has not as yet established a pension fund for policemen, but hopes to do so in the near future." In Hazelton, at the time the reply to our inquiry was made, "there was a man from 'The Policemen's News' who was trying to organize the fore and to form one, promising to start a fund from the advertising which ho will receive for his magazine in writing up the history of the Hazelton Police Department." The Chief of Police of the City of York, expresses his approval of a pension fund, while the head of the Police Department in Wilkes- Parre laments, "With regiet, I have to say we have no pension fund nor have we any prospects as yet." The outstanding features of the three funds now in operation are as follows: The administration of these funds in Philadelphia and Pittsburgh is in the hands of a Board of Directors made up largely of Police District Delegates. In both cities, the city officials are members ex-officio, while in Scranton, the Police Pension Com- mission is composed of two active members of the Bureau of Police, two persons from the citizens at large and the Director of the Department of Public Safety, who are all appointed by the mayor. In Philadelphia and Pittsburgh, aside from the members of the police force, it is provided that outsiders maj^ become life members by paying •'if25. The latter, however, cannot vote and have no right to participate in the benefits. In Philadelphia, each member contributes to the fund one day's pay per month (not to take into account that part of the salaries in excess of .f.3fl00 per annum). Pittsburgh policemen pay 1| per cent, per month of their respective salaries. It is further provided that whenever the surplus of the fund reaches the sum of $50,000 no dues shall be paid. Tn Scranton, the police pay 1 per cent, of their monthly salaries. Besides the regular contributions from the members, the funds are supported by city appropriations and whatever is derived from donations, legacies, bequests, etc. The Scranton fund also receives "all money from the sales of unclaimed articles in the possession of the police." Philadelphia's appropriation to its police pension fund for the year 1918, amounted to .f60,000. Scranton appropriates "the sum of not less than |2,000 each year and also pays the expenses incurred in the administration of the fund." Only the regulations of the Philadelphia fund stipulate that a member may retire at the age of 50 after 20 years of service. Pittsburgh and Scranton make no age stipulations, but require respectively, 20 and 30 years of service. The annuity is computed in Philadelphia, by taking 2^% of the average pay for the last 10 years and multiplying it by the number of years of service. In Pittsburgh and Scranton it is one-half the salary at the time of retirement. In case of injury or disability received while on duty the fund does not stipulate any definite age or years of service required before the granting of a pension. The same method of computing the annuity is followed here as in the case of the regular one. The Philadelphia fund also provides for the extension of benefits, in the case of death, to dependent widows and children. Twenty dollars per month is the widow's pension and six dollars per month in addition is paid for each child. The benefits may not exceed fifty dollars per month. The widow's pension is discontinued at remarriage and the child's at the age of fourteen. If both depend- ent parents are living, an award of twenty dollars per month is given and twelve dollars per month if there is but one living. The Pittsburgh and Scranton funds make no such stipulations. All the existing funds provide for the reduction of the amount of pension in case of insufflcient means. In Philadelphia and Pittsburgh, a member when discharged, forfeits all claims and con- tributions. In Pittsburgh this is the case even upon resigning from the service. Pensions may be revoked in case of misconduct in all city schemes. From the pension features for firemen as found in table no. 70, it is evident that here again only the first and second class cities in the State have definite provisions for aged firemen. A number of third class cities have firemen Relief Associations, but these pay only sick and death benefits for a limited period. 191 The chief characteristics of the regular firemen's pension systems in operation at present are the following: The Pittsburgh Fund, although originally established in 1886, did not begin to pay old age or service benefits until after the passage of the "act for the government of cities of the second class" in 1901. This act pro- vided that "The city councils may provide by ordinance a fund for the care, maintenance, relief of aged, retired, disabled or injured policemen or firemen." The Philadelphia Firemen's Pension Fund was chartered in 1891 and the Scranton Fund did not come until 1904. Only in the Pittsburgh Fxmd do the firemen have no repre- sentation on the Board of Control. In Philadelphia the control is entirely in the hands of the members contributing. But such members of the City Councils as may be named by these bodies are members ex-officio of the Board of Control. Scranton, as is the case in its police fund, provides also for the representation of the citizens at large. All uniformed and regular members of the fire departments are eligible to membership. In Philadelphia, the members contrib- ute one day's pay each month. When pensioned, a member still continues to pay 50% of one day's salary at the time of his retire- ment. Pittsburgh firemen contribute f30 per annum in monthly installments; while in Scranton firemen pay 1% of their monthly salary. Other sources of income, which help to maintain these funds are, from appropriations made by the State and City (usually moneys received from taxes on Foreign Fire Insurance Companies), gifts, legacies, bequests, fines and all moneys turned over from previous funds. The Philadelphia Fund in 1918 received an appro- priation from City Councils amounting to .1f25,000. The City of Scranton also provides for the payment of all necessary expendi- tures of the Commission. The age when a fireman may retire on a pension is placed in Philadelphia at 45, after 20 years of service. In Pittsburgh, no age is stipulated. Twenty years of service is required, but this need not be continuous. Service credit is also given for time served in the U. S. Army or in the State Militia. The age required for retirement in Scranton is 60 years after 30 years of service. No one under 25 is eligible to service. The annuity provided in all funds is one-half the salary received at time of retirement. This salarj' must have been received for a required period of time. In case of injury or total disability a pension is paid regard- less of age or length of service. The Pittsburgh fund provides j-i-.j- „ ^omhpr shall receive full pay when off duty as a result of 102 an injury. This is paid by annual appropriations and not from the fund. In case of total disability ,fl,000 is paid from the fund. At the death of a fireman, both Philadelphia and Scranton pro- vide for the extension of benefits to widows and children. The former receive $20 per month and $6 per month is added for each child. The total, however, must not exceed 50% of salary at time of retirement. These pensions are given only in case a member dies within twelve months after being placed on pay-roll. Widows' pensions cease at remarriage and childrens' at the age of IC. In case of unmarried members, the Philadelphia Fund also extends benefits to dependent parents. Twelve dollars per month is given to one parent and twenty dollars per month for both. In addition to the above three cities, Altoona reports that its "firemen have a Eelief and Pension Association which pays bene- fits for sickness, accident, and death, also pensions members after 20 years of active service. The maintenance of same is derived from dues, donations and the City by ordinance turns over the money received from the State from the tax on Foreign Insurance Companies." The City of Johnstown reports: "We have established a pension fund in connection with our Eelief Fund. We have over 126,000- in our fund thanks to our many friends in Harrisburg." A number of cities have their firemen organized in "Firemen's Relief Associations" which pay sick and death benefits. These are usually administered by elected officers from the members. The funds are maintained by contributions from the members (when the service is not voluntary) and by appropriations from the city. The latter is usually the pro rata share received by the city from the State from the tax on Foreign Insurance Companies. The sick- ness benefits are paid for a certain length of time and in case of death, it is usually provided for the extension of the benefits to dependent widows and children, and if unmarried, to dependent parents. Practically all the organizations of the latter type are admit- tedly inadequate and their funds are often insufficient to meet their needs. The chief of the fire department, where one of the best of these systems prevails, writes: "I am of the opinion that the city should keep this money and establish its own pension fund. There should be a service pension paid and as our men get $10 per week from the Association in case of accident and their wages also from the city in some cases extending for several months, you can easily see what a great chance there is for fraud. Our local Asso- ciation has about .fl4,000 in its treasury and there is so much wrangling and dissatisfaction that a quorum cannot be obtained at some of the meetings. The pensioning of firemen should be s State affair." 205 The, widow of a member, entitled to old age or disability relief, who is without means of support and who has reached the age of sixty years at the time of her husband's death, is entitled to the $5 weekly payment until she dies or remarries. It is provided by the by-laws, that each member shall pay to the International Union Treasury such relief dues as may from time to time be levied by the International Union in convention assembled. The present assessment to the fund is 50 cents a month for each member. This union has jurisdiction over the U. S. and Canada. In Octo- ber 1918, it had 1,374 old age beneficiaries; 109 were receiving dis- ability benefits and 1G7 widows were on pension. Each of these was drawing |5 per week as a pension. In Pennsylvania this Union has 101 persons receiving old age benefits, 15 are receiving disability benefits and 16 widows are receiving pensions, making a total of 132 pensioners. In this State each one of these is receiv- ing $5 per week or |260 per year, making a total of |34,320 per year. The Brotherhood of Locomotive Firemen and Enginemen reports of "an insurance feature in which every member must participate if he is able to pass the required medical examination," but "has no Old Age Relief Fund." The Order of Railway Conductors of America, reports of twenty- one fennsylvanians receiving assistance from their Relief Fund. The average amount received by these a month is |25.00. The secretary further adds: "All members of our Order are eligible to participate and receive assistance from this Fund, provided they are totally disabled and without means of support for themselves and families." It is interesting to notice that the organizations which have established pension systems of late, have learned somewhat from the experience of their predecessors and are at least attempting to adjust their rates on a more actuarial basis; and in addition provide many safeguards for the stability of their funds. The Pension Association of the Brotherhood of Locomotive Engineers was first authorized in 1912 and was revised and readopted May 22, 1018. Its constitution provides that after the passage of this law, no one 60 years of age and over shall be admitted to membership. On and after June 30, 1916, no appli- cation shall be received for membership to the Pension Association from those who have reached the age of 50 years. And on and after December 31, 1919, no one can join who has reached the age of 45 years, while after December 31, 1920, members who have reached the age of 40 years are barred from membership. It is 20G earning at least |60 per month are eligible to membership in this association; also '"no person who is out of employment temporarily caused bj' sickness or injury, can become a member of this Asso- ciation during such period." In addition to these restrictions, "All applicants for membership in this Association will be required to pass a physical examination by a competent and reliable phy- sician, and those having known physical or mental defects may become members of this Association, provided that proper and legal waivers be furnished by such applicants exempting this Association from any and all liabilities resulting therefrom." Benefits are extended to the following: First, "Any member of this Association in good standing, who was in active service at the time of enrollment as a member, but who from physical or mental cause is totally and permanently disqualified, or has been retired on account of old age, shall receive from the funds of this Association a monthly pension as hereinafter provided. "Any member of this Association who voluntarily retires from active service will not be entitled to receive a pension on account of old age until he has reached the age of 6") years." Second: "Any member of this Association, in good standing, who was not in active service at the time of enrollment as a mem- ber of this Association, who from physical, mental, or other canse, is unable to perform any kind of remunerative employment, or who has reached the age of 70 years, shall receive from the funds of this Association a pension as hereinafter provided; provided further, however, that no member shall receive a pension for dis- ability caused l)y his use of intoxicants, or unlawful acts." Third: "All members of this Association, who are 65 years of age and are in active service, may if they so elect, voluntarily retire permanently from such service, and thereupon become eligi- ble to a pension at once. All other members who have reached the age of 70 years shall be granted a pension." The contributions and the pensions of this Association are graded and vary in accordance with the age and period of contri- bution. The amount of dues paid by each member follows: "All active members under the age of 30 years shall pay 50 cents per month. All active members from the age of 30 to 35 years shall pay fl.OO per month. All active members from the age of 35 to 40 years shall pay |1.50 per month. All active members from the age of 40 to 45 years shall pay |2.00 per month. All active members from the age of 45 to 50 years shall pay |2.50 per month. All active members from the age of 50 to 55 years shall pay |3.00 per month. 207 All active inembera from the age of 55 to 60 years shall pay $3.50 per month. All active members from the age of 60 to 65 years shall paj^ $4.00 per month. All active members over the age of 65 years shall pay |4.50 per month." The'pensions allowed are based upon the following scales: "Any jnember of this Association who has been declared a pensioner by the Board of Governors, who shall have paid dues for 60 months, or less, shall receive a pension from "this Association for the remainder or his life, of |25.00 per month." "Those paying the dues for 61 months to 120 months, fSO.OO per month. Those paying the dues for 121 months to 180 months, |35.00 per month. Those paying the dues for 181 months to 240 months, |40.00 per month. Those paying the dues for 241 months to 300 months, |45.00 per month. Those paying the dues for 301 months to 360 months, |50.00 per month. Those paying the dues for 361 months to 420 months, $55.00 per month. Those paying the dues for 421 months to 480 months, $60.00 per month. Those paying the dues for over 480 months, $65.00 per month." The Brotherhood of Locomotive Engineers also has an Indigent Fund and an Insurance Relief Fund. No information is available as to the number of pensioners in Pennsylvania. The Pressman's Union adopted a pension plan, by first creating a sinking fund from the accumulations of a 25 cent assessment per month for all members for five years, before the payment of pen- sions became operative. This, it is believed, Avill create a sufllcient fund which when placed on interest will insure stability and pre- vent the gradual increase of the per capita tax as was the case with other established funds. Since 1913, District Number 21, United Mine Workers of America has had the following pension system: Each member pays 40 cents assessment per month, which may be raised or lowered when necessary. All members, 60 years of age, wlieii they have discontinued work in the mines, or those physically disabled from performing further labor in and around the mines, having no other means of support, and in good standing for five years preceding January 1st, 1913, shall receive $3.00 per week. Those joining the Union 208 after January 1st, 1913, are not eligible to benefits unless they have been members in good standing for 5 years prior to making application for pension. At the 1916 International Convention of the United Mine Workers of America, a Committee was appointed "to investigate and report the advisability and possible cost, to the International Union, of erecting and maintaining a suitable home wherein to care for the aged, infirm and decrepit members." After a careful investigation of the Soldiers' Homes, and Homes for The Aged maintained by the different unions, and fraternal organizations, in the United States and England, the Committee reached the conclusion that "taking the estimates of other homes, it would cost about $40.00 per month for each resident for clothing, food, medical attendance, and medical supplies." The Committee further reports that "The question of pension, with or without a home, was early called to our attention, and as the difiierent organizations with whom we came in contact either had pension systems in active operation or were preparing to adopt pension systems, we deemed it advisable to gather all the data possible on that subject." In comparing the safeguards adopted by other organizations, and in its "endeavors" to select the best that are actually necessary, to make the plan a success, the com- mittee at the last International Convention of the U. M. W. A., recommended the following plans for creating and maintaining a pension system. "(1) An old age disability pension fund is hereby created by an assessment of 40 cents per month per member, which shall auto- matically be raised and lowered as necessary under the direction of the board of trustees hereinafter provided for, but in no case shall the assessment exceed 50 cents per month. per member. "(2) Said assessment shall be in full force and operation on and after April 1, 1918. "(3) A sinking fund shall be created by the accumulation of said assessment for a period of three years from and after April 1, 1918. "(4) That on and after April 1, 1921, all members in good standing who have reached the age of sixty-five years and who have been continuous members in good standing for a period of ten years immediately preceding their application for pension and have paid their regular monthly assessment to the pension fund for at least three years, whose earning capacities have been reduced to less than twenty-five dollars per month, and who have no visible means of support other than their labor, shall be eligible to receive a pension of twenty dollars per month, payable monthly. 209 "(5) That on and after April 1, 1921, any member who has been a continuous member in good standing for ten years immediately preceding his application for pension and who has paid his regular monthly assessment to the pension fund for at least three years and who is totally incapacitated for work by reason of accident or sickness of a permanent character, who has no visible means of support other than his labor and who has been denied aid from compensation laws or has tried and tailed to recover reasonable damages for injuries sustained, shall, upon satisfactory proof, be allowed a pension of twenty dollars per month, payable monthly; the trustees to have the right to appoint a physician or physicians to make an examination if they deem it necessary." From a canvass of 699 locals with a total membership of 120,568 the Committee has learned that there were 4,199 members from 60 to 65 years old; 1,928 from 65 to 70 years of age, and 156 from 70 and over. In addition there were also, 1,497 members inca- pacitated under 60 years of age. The Committee admits that this is a very large per cent., as compared with the membership of other organizations, but recom- mends the adoption of 65 years of age as the minimum age for the payment of pensions. The Committee accepts the experience of the International Typo- graphical Union as a safe guide for their own contemplated plan. It states that in the latter Union, there is a fraction more than 22 pensionere to each 1,000 members, which they assume will hold true of their own membership. They ignore however, the fact that the percentage of pensioners in the I. T. U. has been continuouslv on the increase. And further ignore the definite warning, of the Union's Executive Committee, sounded at the last convention, that while the expenditures on pensions have continuously increased, the receipts did not increase to the same ex;tent. And for t]ie last fiscal year there was even a deficit. The experience of even the firmly established and best inten- tioned fraternal pension systems in this country has not proved these to be very satisfactory insurance instruments. It is, doubt- less, this recognition that has prompted the International Typo- graphical Union to adopt the following resolution at its 1917 Con- vention. "Whereas The United States of America is the only great nation in the world (excepting Eussia) that does not provide old age pensions for its worn out and worthy workers ; and, "Whereas The consequent necessity of American workers to pro- ride their own benefits is a gross inju.stice, and frequently ends in failure through no fault of the workers; and, U 210 "Wheieas, The Govei-uiuoiit of the United States of America has deiiianded that its citizens protect the honor of the nation with their lives in a great war, while this Government has not in the past been responsive to the demands of its workers to protect their lionor; therefore, be it "Kesolved, That the International Typographical Union, in con- vention assembled, endorse and urge the passage of the old age pension bill introduced in Congress by Geo. 1. R. Sherwood, for the benefit of all American workers." That attempts, made by the working classes to provide against old age frequently end in failure, is certainly well borne out and generally recognized. Labor organizations and labor leaders have therefore been most active in agitating for governmental pension systems in old age. Knowing the difficulties confronting them in establishing their own provisions, labor unions have repeatedly declared that "The responsibility of caring for the veterans of industry who in times of peace have been the mainspring in the work of material progress, and in times of war have always been ready to sacrifice their all, either in the field of active operations or in bearing the burdens of taxation and support, should as a ]«iatter of riglit and justice rest upon the Government." In Penns^dvania, for the last decade, the State Federation of Labor has been the most active body urging a state-wide pension plan for all aged workers. A bill for this purpose was introduced by the Chairman of this Commission, in the 1917 session of the Legislature. CHAPTER III. THE PROBLEM OF OLD AGE PENSIONS— WHAT IT IS. "In the care of the aged we express our altruism in its highest xorm."* The question of state pensions for the aged, like all social problems, is of modern origin. As a form of social insurance it is not necessarily pi'eventlve of poverty but rather remedial. Neverthe- less, in its most liberal form it seeks to accomplish a more equita))le distribution of wealth. A state old age pension ultimately in volves a redistribution of wealth, eiclier from the productive years of the individual to his non-productive years, or from the funds of the entire community to the aged. The question of providing for the aged hardly existed before the era of the factory system. The modern problem of old age is a result of the Iremendous industraliza,- tion of production since the industrial revolution. In the primitive patriarchal state old age was revered, and the aged person w>ir looked up to for advice. Where the family was a unit the supremacy of the old Avas permanent and continued beyond theii- productive powers. Tlie worker in medieval times ordinarily would go on working as long as he could produce something. The feudal lord was obliged to take care of his workers in case of sickness, accident and old age. Under those conditions there was no necessity for individual provisions against any emergency. In the early stage of industrial develo])ment, the economic relations betA\'een men were more or less of a permanent character. The labor contract was usr.ally life-long. The usefulness of an old man or woman also rarely ceased in an agricultural society before actual senility had taken place. All this is changed under our modern wage system. The rapid development of industry has dejtrived old age of the esteem bestowed upon it under the more primitive patriarchal conditions. Modern industrj' at the end of a life of productive toil relegates its aged and decrepit workers to the scrap heap as useless and of no economic value. "It is notorious that the Insatiable factory wears out its workers with great rapidity. As it scraps machinery so its scraps human beings. The young, the vigorous, the adaptable, the supple of limb, the alert of mind, are in demand. In business and in the ^T~ Tiiattor of the asf-d ^mis aettled summarily by -primitive men. It is told that some tribes used to put their old gentlemen up in trees, and then after singing "tiie fruit savajre _y ^^^^^^ '^^^ frees, and clubbed the nged unfortunates as they tumbled do-wn. (2U) 212 professions maturity of judgment and ripened experience offset, to some extent, tlie disadvantage of old age; but in thie factory and on the railway, with spade and pick, at the spindle, at the steel converters there are no offsets. Middle age is old age, and the woi'n-out worker, if he has no children and if he has no savings, Loeomes an item in the aggregate of the unemployed. The veteran of industry who is crowded out by changes in processes and the use of new machinery is obviously an instance of maladjustment."* It was seen from our discussions that many industrial concerns — especially railroads — will not employ men after they have reached the age of 40, and a few bar men from employment even at the age of 35. It was also found that but few aged workers were engaged in the leading Pennsylvania^ industries. The labor contract in th(.' factory system is made onl^ for a temporary period, and the em- ployer recognizes no obligation to support the workers during theii- declining years of inactivity. The aged worker is thrown upon his own resources. This condition of impotence is augmented still further by the break-up of the family in modern society which often thrus. The expenditures made during the same time were .f 1, 97.1,859.00 paid to pensioners; and |50,183.70 for administra- tion and registered system. The balance of the fund on May 31, 1917 was .f 615,875.73. The table below sliows what it cost per mendier to maintain this fund since its establishment. Monthly Pension Total Earnings of Assessment Year Members Per Member 1909 S40.293,73S 37.3 cents 1910 45,602,944 39.7 cents 1911 49,770,668 40.5 cents 203 1912 53,378,902 41.3 cents 1913 56,944,484 42.5 cents 1914 61,050,332 43.0 cents 1915 61,155,285 43.5 cents 1916 62,711,805 43.3 cents 1917 66,652,431 45.2 cents It will be observed that with one exception the assessments have continually increased. During the first few years, the financial operation of the system was declared eminently satisfactory. A comparison, therefore, of the receipts and expenditures of this fund during the first few years and the last years is exceedingly enlightening. In the first year the receipts exceeded the amount expected, while the expenditures were even less than those esti- mated. Because of this, there was a temptation to reduce the amount of assessment. After several years of experience, however, it appears that the expenditures on pensions have grown steadily, and in 1917 have amounted to nearly $20,000 more than the receipts from the assessments. Indeed, while at the end of the first year the balance in the fund, after paying out all expenditures, was $159,767.17, in 1917, there was an actual deficit of $425.15. -This deficit is even larger when the f23,282.75 interest item is deducted from the total receipts. At the last convention of the I. T. U. a warning was sounded because of this and it was recommended that "the provision in the pension law which permits a member of but ten years' standing to be placed on the pension roll at the age of 70 should be repealed. When this amendment was adopted there was some justification for the law. That justification has ceased to exist, and it is not fair that those of our members who join the union at the age of 21 or thereabouts should be assessed to pay pensions to members who join at thei age of 55 or later. It is a question whether members who work regularly two days each week are legally entitled to continue on the pension roll. We may as well realize the fact that if we are to continue this extremely liberal interpretation of our pension law we must pay for it by an increased assessment." Up to May 31, 1917, 2,590 applications for pensions by the I. T. U. were received. Of this number 72 petitions were disapproved, 51 Avere withdrawn and 2,467 were approved. Death removed 958, leaving 1,509 pensioners on May 31, 1917. The high death rate of 86.9 per cent, among these pensioners is significant. This is doubtless due to the advanced ages of the pensioners. Only 110 of these living are under 60 years of age. The membership of the unions having members on pension in 1917 was 49,766. The pen- sioners represented 3 per cent, of the membership of these unions 204 which in return constituted over three-fourth of the total member- ship of the I. T. U. During the fiscal year ending May 31, 1917, 69 pensioners were added. The Order of Railroad Telegraphers has established a pension fund for life annuities to old and faithful members of the order who have reached an advanced age in life, as well as to those totally disabled through physical and mental infirmities. In order to be eligible to membership, one must be a member continuously for at least five years, immediately prior to the filing of applica- tion for membership with the pension fund. Members 60 years of age and over are not eligible to membership in the pension fund after January 1, 1916. The fund is maintained from an admission fee of five dollars from all applicants for membership in the pension fund and from a semi-annual assessment thereafter "equal to an equal division of $240 over the period ensuing between the age of the applicant at the time of admission to the pension fund and his 65th birth- day after which his or her assessments shall cease." When a member of the pension fund attains the age of 65, he is paid a monthly salary of |20 during the balance of his or her natural life. In order to obtain a total disability pension, eight years mem- bership is required. The assessments cease as soon as placed on retirement roll. The pension fund is entirely self sustaining and can in- no way create any financial liability to the order of the Railroad Tele- graphers. The Secretary and Treasurer of the Order writes: "We will prob- ably discontinue our pension plan at our next convention, which will be held during the month of May 1919, due to the fact that this proposition has not received the support of our members as ^vas anticipated. If it is discontinued, all money paid into the fund will be returned to the members of this department." The Blicklayers, Masons, and Plasterers' International Union of America has an Old Age, Disability and Widows' Relief Fund. This union provides, that when a member has been in continuous good standing for a period of twenty or more years, and has passed the age of sixty and who through some bodily infirmity is unable to secure sustaining employment at any occupation and has no means of support, he is then entitled to make application and receive .f5 per week benefits from the Relief Fund. A member who meets with some accident while working at his trade on a building, during worldng hours, and is incapacitated from work, and who has ten years of continuous standing to his credit, is entitled to disability relief, of |5 per week. 213 the Report. Students of social and economic conditions and of stand- ards of living are generally agreed that with the modem cost of living, the great masses of workers cannot lay aside from current wages suf- ficient to provide for possible emergencies. The excessive expendi- tures required on food and rent as disclosed in the house-to-house studies bear out this contention. Saving for old age is especially dif- ficult as it is so remote and uncertain of attainment. Most people have a working belief in the power of kind fate to bring release in one form or another, before the tools have to be dropped. Professor iSeager aptly states: "The conditions of modern industry have failed to supply motives for saving sufficiently strong to take the place of those that are gone. It is true that saving is still necessary to pro- vide for the rainy day, for loss of earning power due to illness or acci- dent or old age, but against these needs is the insistent demand of the present for better food, for better living conditions, for educa- tional opportunities for children. This demand is not fixed and sta tionary. It is always expanding. . . . One consequence of our living together in cities and daily observing the habits of tho.st bettei off than we are is that we are under constant pressure to advance our standards. This pressure effects the wage-earner quite as much as it does the college professor. Both, when confronted with the problem of supporting a family in a modern city, find the cost of living as Mark Twain has said, 'a little more than you've got.' ''* Professor Miller, in the most recent book on Social Insurance, con- cludes: "Thrift is a desirable habit for those who receive a wa^e fiat makes saving a possibility, but thrift becomes a mockery in the homes of the poor, and 'saving' an economic falsehood."** It is evident that the problem of economic support of the aged i- with us, and whether met in one form or another, society bears the burden. The giving of alms, however, either private or public, is noi. only insufficient and unsatisfactory, but as has been pointed out by many students before, it exercises a degrading effect upon the recipi- ent and is repugnant to the self-respecting person. "While the social activities of the state are marked by hujnane legislation in many forms, for the betterment of the individual, its system of poor relief is antiquated. Poor relief makes no distinction between the worthy and the unworthy ; the social stigma, the deprivation of citizenship and often the publication in the town report of the name of tlie recipient and the amount doled out to him, make the system onerous and the approbrius epithet of 'pauper' is the price the citii'.en pays for help "*** It is also evident that the retention of an aged employe in active service often involves economic waste. .11 R Senger, "Social Insurance," pp. 10-11. .i>. ^ T^illpr "Social Insurance In the TJ. S. 1918," p. 111. ...i lal Report On Old Age Pensions," by Committee of National Association of Manufactiireis, May, 1917. P- 2. 214 To meet the problem adequately, systems of old age pensions or in- surance are, therefore, urged, not only iis a means of taking the aged workers out of the poorhouse and enabling them to spend tJieir last years in self-respect and comfort but for many other reasons. "Social insurance has a significant effect on the national health and phy- si(|ue," says Frank A. Yanderlip, President of the National City Bank. It is contended that any system of insurance is preferable to indi- vidual savings. Insurance is defined as an arrangement by whicli the losses sustained by few are distributed among many. The indi- vidual savings against old age from this view point may be consid- ered even uneconomic as it requires every person to provide by a lifetime of painful effort, ^\'ith no absohite security, against a con- tingency which is certain to be experienced only by a few who sur- vive. Moreover, it is argued by many students that "Wages ought to mean an income sufficient to insure support for life ; and where such is uot the case it is inevitable that supplementary means shall be forthcoming in old age to warrant a continued 'living.' Under such conditions public support should be considered as postponed wages, and not charity. The worker who has spent his life in industry, and whose wages have been legitimately consumed in support of himself and family, is entitled to 'supplementary' wages in old age. A pen- sion in such cases may rightly be called 'postponed wages.' "* Secretary of War, Newton D. Baker, in his annual report lor 1917, speaking of a retirement la^v for Government employes said: "The effect of such a law would be to give an assurance of a competent and comfortable old age. It would relieve the employee from the fear of loss of occupation and of livelihood, would further inspire him to loyalty to the Government as an employer, thus improving the gen- eral quality of the service rendered bj^ Government employees, and would permit the replacement of some employees in the vai'ious de partments who have long and faithfully served the Government and reached venerable but enfeebled years without having had an oppor- tunity to accumulate any competence upon which their retirement can rest."** Secretary of Commerce Redfield, in his annual report for the same year said : "Efficient service and justice to employees demand a comprehensive, wide-reaching, and effective scheme of re- tirement pensions, the advantages of which are being more and more widely recognized by progressive commercial establishments and by foreign governments."*** The Chief Clerk of the Department of State said : "Most men look forward with more or less apprehension to the impairments of advancing years, and such apprehension un- consciously affects adversely their ability for the complete jierform- ance of duties assigned to them. I believe that a reasonable assui- *G. R. Miner, "Social Insurance," pp. 109-110. ••Report of Hearings Before U. S. Senate Coromittee On Civil Service and Bettencliment," p. •"Ibid. 215 ance of being cared for in liis declining years will proportionately increase a man's mental and physical effectiveness in his years of health and vigor."* Secretary of Labor, William B. Wilson, in speaking of old age pensions said: "During his entire lifetime tlie propertyless workman must continue to give a share of what he produces in the form of profits to his employer in return for the opportunity of earning a living. The compensation received seldom exceeds the household requirements, 'economically administered.' When the time comes that the physical and mental faculties begin to decline, when his powers of brain and brawn can no longer be profitably employed, no means have been accumulated by him with which to sustain existence. Surely, then, society at large, to which he has given a lifetime oC labor, which protects his employer and others in their title to prop- erty, should protect him in his right and title to a comfortable exist- ence during the remainder of his days." "The State at the present time recognizes a part of its duty to the old, the sick, the injured and the incompetent, as is shown by the establishment of poorhouses and hospitals. But our poorhouses are organized and maintained on the principle of charity, rather than on obligation which society owes to its superannuated workers. The application of the principles of charity in that case is unjust. Soci- ety, in carrying out its own ideas of economic law, has left thi'm, after a lifetime of hard labor completely stranded, like ship-wreckod mari- ners on the arctic shore of time. It owes them a living, and should pay its debts."** In his inaugural address to the members of the Massachusetts Leg- islature of 1917, Governor Samuel W. McCall, recommended the adoption of a system of old age pensions which should be legarded strictly as a pension "granted in recognition of long and meritorious service to society." In answer to the objection that a pension would discourage thrift, Governor McCall states : "That the members of the groups to which it would practically be applicable, work for wages which would not permit of saving upon any sufficient scale and with little to save they would have little to squander." The New England Governor speaks of the need of old age pensions as a direct creation of modern machine industry which because of its speed and strain has no place for many workers who are unable to maintain the pace much beyond their prime of life. The problem as stated by him i.-? that "It does not necessarily mean that they are worn out, but they cannot keep up with the demands of the modern methods of produc- tion and thus they are thrown out of their accustomed work at a period of life and under circumstances when it is difficult, if not "QMotert by "MRRsachnsetts Commission's Report," p. 342. 216 impossible, for them to acquire efficiency in a new calling. If they have not made provision before that time arrives they are likely to become dependent.'" "Strictly, a wage should be paid during the period in which one is v. ordinarily able to work in such employments which would support him for his whole life. Thirty years of labor with the fast-flying machinery of our manufacturing establishments will enable the work- iiigman to produce more than with the appliances just before our era he could have produced in many centuries. It is not economically just to credit to machinery the whole saving in production and leave the man a derelict at the end of his working time. There should be charged against it the damage done him as a producing Agency as an element in the cost of production. If that element were not to be fairly represented in wages or in some other way we should have a deformed industrial system, which would absorb the vital forces of millions of men and then heartlessly cast them off with no hope of living out their days, except through the charity of their fellow men. It would be just to assess against production the cost of providing for the care of the worker during the period after his invalidity should come. Either that or the wage should be adjusted so that in ordinary cases it would enable the worker to make provision for him- self." The adequacy of the means existing in Pennsylvania to meet the problems of the superannuated workers, who often thru no fault of their own, are forced to become dependent was seen from the discus- sions ill the preceding chapters. An examination of the tables re- vealed that of all the multifarious forms of industrial, municipal, and fraternal pensions in the State the number of Pennsylvania wage- earners actually on pension lists in 1918 hardly reached ten thou- sand. In the seventeen leading industries listed, the number of former Pennsylvania employees actually receiving old age pensions Avas 2,152. The number of wage-workers receiving pensions from concerns having no regular pension system would hardly exceed an additional five hundred. Of all the railroad workers in the State only about four tliousand aged employees are receiving old age support. Tables 1-1 and 58 are significant at this point. However, even if these systems were operated more extensively, it is clear that they are largely dependent upon the arbitrariness of the employer, which makes the receipt of a pension very uncertain for many employees. The period of service required is often too long. These schemes, it was apparent, discriminate unfairly against those who cease to be employees. In a few cases in the contributory schemes, employees either do not have their contributions returned or have them returned without interest. Generally industrial pensions are considered nierely deferred wages. These industrial systems specify th?it a pe'V 217 siou may be terminated at any time; that the establishment of such a system is not to be construed as conferring a contiactuarial right, and lliat the company reserves the right to discharge an employee or terminate the system at any time. It is also pointed out by many students of the problem that these systems have an injurious efifect upon the independence and mobility of labor, as it ties a man to his job by discouraging him from changing from one employer to another, which, it is claimed, are important factors in the securing of higher earnings and better conditions for wage-earners. "I have known of a case recently in which a large organization in this country notified all its old men that if they did not return to work in the event of a strike they would lose their pensions."* Furthermore, these systems at best, as Avas pointed out by many employers, are possible only in ^Inrge industries. Of the nearly fifty thousand public school teachers in Pennsylvania, only a little more than 600 are receiving pensions from the various retirement funds. The new State Eetirement Fund which is coming into effect in July, 1919, is expected to benefit more. The number of policemen, firemen, and other municipal and State employees in the State receiving old age pensions did not exceed 1,700. The inade- quacy of protection against old age provided by trade unions or fra- ternal organizations has already been discussed. It was seen that most of these are not established upon sound actuarial principles. Many have become insolvent and many more are liable to dissolution at any time. As a rule, all these pension funds are exempt from the strict supervision required of private insurance companies. The total number of pensioners in the State (not including pensioners of the United States) constitutes three per cent, of the total population os-er 65 years of age in the State. In other words, only three out of every hundred or thirty out of every thousand persons; 65 years of age and over, were protected by old age benefits in Pennsylvania in 191S. This percentage is cominited on the total population 65 years of age and over as given by the 1910 census. It is obvious that it would be still lower if the increase in the aged population during the past eight years was taken into consideration. That verv few old people in Pennsylvania are able to care for themselves even tho they are not dependent upon public or private charity has been disclosed from the house-to-house studies. It was found that but few under the in- creased cost of living could save for old age. That there is an old age problem is thus obvious. Practically all civilized countries have recognized it and have adopted one form or another of national schemes to cope with this. Even in tho United States there is developing a general recognition of the obligation of society to protect in their old age the veterans of its 'army of 758. •Kev. V Father O'Grady, Bulletin of IT. S. Bnrcau of Labor Statistics— No. 212, p. 218 toil." Til is is evidenced by the rapid growth of industrial pen- sions and by the appointment, by numerous States, of commissions to study the problem. At least three States, Massachusetts, Arizona and Wisconsin have adopted some method to cope with this problem. Our own Governor, Honorable Wm. C. Sproul, in his inaugural ad- dress urged that "the important subjects of old age pensions and in- surance against sickness . . . will have to be given clot;e atten- tion, and the whole subject brought up for inclusion in the State's social program." The systems providing for old age as adopted in the various coun- tries are generally classified under the following main schemes: (I) 'S'oluntary insurance; (II) Compulsory-contributory insurance; (ill) Gratuitous or straight pensions by the government. Voluntary insurance against old age may be classified into sev- eral types: (A) Private Voluntary Insurance, (B) Voluntary Insur- ance Under Public Administration, (C) ^^oluntary Subsidized Insur- ance. Under the first are included: (1) The old age benefits pro- vided by trade unions and fraternal organizations, (2) Insurance against old age by industrial corporations and (o) Insurance with private companies. All of these forms are business propositions pure and simple. They involve no state action except supervision. The extent of insurance thru the above agencies is very limited. (B) Voluntary Insurance Under Public Administration. In this form of insurance thei'e is no state subsidy, but the government sells annuities and insurance at cheap rates. In addition to govern- mental guarantees, the state bears the expense of adminis-t ration. This is the underlying principle in the state plans of savings in force in Massachusetts, Wisconsin and Canada. The aim of this insurance is to facilitate savings against old age and to make it attractive and accessible to wage-earners. The amount of insurance is limited and opportunities are offered employers of labor to cooperate with their employees either by making contributions towards the payment of the premium or by collecting it. The advantage of this form of state savings over private insurance lies in the cheapening of the premiums by the elimination of profits and the cost of administration. (C) Voluntary Subsidized Insurance. The object here is to put a premium on savings for old age. The state in this case subsidizes individual thrift by means of a state contribution. These systems were practiced in France, Belgium, Italy, Serbia and Spain. They are devised with the special purpose of serving the wage-workers. The amounts of the subsidies vary in each country. The lalter are not given to the insured but deposited to his account and go to swell the amount of the pension purchased. The three preceding forms of voluntary insurance are the evolu- tionary outgrowth of one another. The chief reason urged in favor 219 of voluntary iusuvauce is that it encourages thrift and maintains the w;]t respect of its beneficiaries. It is pointed out however by all experts that in practice after many decades of effort it has failed to accomplish its purpose. Even generous subsidies do not seem to at- tiact more than a small i)art of the wage-earners, and in some coun- tiies these systems have to be partly or entirely superseded by other methods. "Voluntary subsidized insurance has never at any time or in any country accomplished its purpose. The common people don't insure."* Dr. Rubiuow after an exhaustive discussion of the voluntary schemes in the several European countries concludes: "1. That even a heavily subsidized system of voluntary old age insurance attracts only a small proportion of the working class, pre- sumably of the better-paid strata. ."2. That even of those who begin accounts, a large and growing proportion fail to continue to make the necessary contributions with any regularity. "3. That usually only the minimum is contributed which is neces- sary to acquire the subsidies. "4. That the workingmen are forced to reduce their old age pen- sions in order to safeguard the interest of their families, and "5. That the pensions actually acquired are pitifully small."** IT. COMPULSORY CONTRIBUTORY INSURANCE. This form of insurance is a logical result of the failure of the voluntary systems. The great mass of wage-workers being either unwilling or unable to insure themselves against old age, Laropean governments sought to overcome this by making it obligatory for certain classes of wage-workers — whose yearly income did not exceed a certain amount — to insure them- selves against old age. The government making it attractive ou the other hand, by subsidizing the insurance. Germany was the first country in Europe to establish compulsory insurance of working people. A system patterned after the German one was later adopted by France in 1910. Systems embodying the compulsory principles are also established in Austro-Hungary, Greece, Iceland, Italy, Luxem- burg, Netherlands, Rumania, Russia and Sweden. Under the compulsory form of insurance all wage-earners earning below a certain income are compelled to insure. Salaried workers above a set amount are not obligated to insure but may, in common with^Bier classes, take out voluntary insurance. Participation in the plS^^gins at an early age. Contributions are generally made both by the employer and employee in equal parts. The state's con- • lunier "arital Insurance in the United States," p. 112. ••^ubinowr^oriol Insurance," p. 344. 220 tribution consists of bearing the expenses of administration. In ad- dition, it also makes a direct contribution to the pension after it ha,* matured. In Germany the contributions of the workers are graded in accordance with their income, while in France it is uniform for all adult males, females and minors. The eui];loyees' contributions are collected by the employer who is alloA\ed to discount them from the wages of his workers. The age when one becomes entitled to a pen- sion is set at 60 years of age in France, and 70 years in Germany. Before a person, however, can receive a pension he must have a nec- ossarj' number of contributions; this in tiermany is 1,200 weeks, and ii' France thirty annual contributions. To protect also those who cannot make the required number of contributions, provisions are made in both countries reducing the required period of contributions by 40 weeks for each year of age over 40 in Germany and thirty in France, when the law went into effect. The amount of the pension allowed under these plans is very small, rarely exceeding $60 a year— an allowance which cannot obviously go very far. No country which has introduced compulsory insurance has at any time attempted to- raise more than fifty per cent, of the necessaiy funds from the insured persons. In Germany the contributions from the insured persons amount to about 40 per cent, of the total disbursements, v/hile in other countries it amounts to about 30 per cent, of the funds dis- bursed. The advantages of the system of compulsory contributory insur- ance are as follows: (1) Its possibility of universality. By means of compulsion, insurance cannot only be extended to all classes that, need most the protection against old age, but can also be made most effective. "Obligatory insurance, and obligatory alone, by making Ibe support of insurance an indispensable item of the family budget,^ will act upon wages in such a way as to raise its standard, which in- creased expenditure will be shifted upon the cost of production and I'rices, and thus make a general industrial condition to be borne with- out any appreciable hardship."* (2) Compulsorj^ insurance avoids tlie dependence upon charity. Under this system the worker gets his pension as a matter of right even when he is not poor. "It is not ii dead-level system. It preserves a normal relation between the stand- ards of life before and after the age of pension and also preserves a just relationship between services rendered and the rewards granted, for it is usually based upon 1he length of contributions, which is tlie length of productive activity."** (3) It encourages thrift even thp not of a voluntary nature. (4) The need of old age pensions is largely a result of the industrial problem and ought to be borne by industry. "It is economically just, in so far as it exacts a contribu- tion from the industry, for superannuation is not less a factor of •Quoted by W. F. Willoughby, "Worklngmen's Insurance," p. 33B. ••Eublnow, "Social Insurance," p. 386. 193 The City of Monongahela "carries on its books what is known as the Special Firemen's Fund which fund was created and is sus- tained by the city's pro rata share from Foreign Insurance pre- miums received from the Auditor General out of which we care for sick and disabled firemen who become incapacitated by reason of fighting fire. The City allows for hospital, doctor bills and the amount equal to the daily wage or salary of the sick or injured fireman. We have in the fund at the present time the sum of 15,069.88." The plight of the cities that have no systems of Firemen Relief and the reactions of those fire chiefs who are eagerly concerned in promoting the best interests of their departments, may be illus- trated from the following letters. The chief of the fire depart- ment of a city in the western part of the State writes: "We have no pension fund here and are not likely to have one. I have been trying to get our city fathers interested in the Fire Department but they take more interest in the garbage department, street department or any old department. I am ashamed of our equip- ment. I don't like to see firemen from other cities visit us. They go away laughing. We are way out of date. We have no pension fund and if we ever get it, it will be through Harrisburg and not through our city fathers." From Oil City the appeal comes: "If you can do anything for us to get one we shall appreciate it very much." The chief of the fire department of an eastern city, after stat- ing that they have no fund whatsoever adds: "Our fire drivers are not taken care of by any insurance in accordance with the Com- pensation Act, neither by the city or their respective companies, which I consider they should be. I hope that this information will enlighten you in the matter and compel the right party to provide compensation for them." Of even greater importance' than the question of providing old age pensions for policemen and firemen is the question of providing some form of relief in their old age for the general body of munici- pal employes. Policemen and firemen are comparatively better paid than the common laborers and the lower ranks of employes in general, and are tlierefore, better able to provide for old age. Our municipalities employ many hundreds of workers from the latter groups, who in many cases are paid a lower rate than that paid in the local private industries. These workers, who do the "dirty work," are obviously the group least able to save for old laee That these men who are responsible for the health and the manifold comforts, furnished by our modern cities and who loyally ]94 serve the muuicipality during the best period of tlieir lives, shoul not be left helpless in their old age is so manifestly a matter c justice that it needs no further emphasis. Pennsylvania is the leading State in the ITnion in the establisl ment of systems for pensioning their municipal employes in thei old age. Of the five cities in the country which have establishe such funds, Pennsylvania has two — Philadelphia and Pittsburg] having such systems at the present time. The only other thre cities in the country are New York, Boston and Chicago. On J?,Iay 20, 1915, the Legislature passed an act "requiring citiei (if the first class to establish a pension fund for employes of sai( cities and all county or other employes, if any, paid by an appro priation of the city councils thereof and out of the treasury o said cities." On the 28th of the same month a similar act "requir ing cities of the second class to establish a pension fund foi employes of said cities" was passed. Immediately following the passage of these resolutions botl Philadelphia and Pittsburgh established such funds. The formei came to existence on August 6, 1915, while the latter was organ ized on October 4, 1915. These funds were established in accordance with the provisions of the Legislature and are similar in many respects. In both cities the pension funds are administered by a Board of Pensions consisting of the mayor, the City Controller and rep- resentatives of the City Conncil. Only the Pittsburgh fund, how- ever, gives representation to the employes ; two contributing mem- bers are elected to the Board by the contributors. The beneficiaries in both funds are all salaried and regular employes of the city and county (except those who at the time of the approval of the act are provided for by the already existing pensions). The two pension schemes are still obviously inadequate as both provide that per diem employes, — for whom the need of a pension system is even greater — are not required to enter the system unless they so desire. The same exceptions to those already pro- tected by pensions are provided here also. These funds are made up largely from the contributions of the members — ^two per cent, of monthly salaries, not to exceed |4 per month. In addition, each city appropriates "a sum sufficient to maintain the pensions or compensations together with such amounts which may be necessary for administering the same." Before an employe can retire on a municipal pension, it is pro- vided in both funds that he must be at least 60 years of age, and haye been at least 20 vears in the service. 195 The amount of the regular pension is 50% of the average amount of wages received during the last five years but must not exceed flOO per month. In case of injury or disability one may be pensioned regardless of age or length of service in Philadelphia. The Pittsburgh fund, however, requires 20 years of service before one can receive a pension for disability. No benefits are provided lor dependents but in case of death, pension may be given to the mem- ber's estate. (5) STATE EMPLOYES' EETIREMENT PROVISIONS. At the present time there are two classes of State employes who may retire on pensions received from the State after they have fulfilled the specified requirements. These groups are the judges of the Supteme, Superior, Common Pleas, and Orphans' Courts and all "State employes in penitentiaries, reformatories and other insti- tutions operated by the Commonwealth, as well as those moi'O directly in the service thereof." The former group was first taken care of by an act which was passed in 1901. This act provided "for the removal of judges of the Supreme, Superior, Common Pleas, and Orphans' Court, per- manently disqualified by rea.son of physical or mental disability to jperform their judicial functions and duties with half pay for unexpired terms." In 1911 this 'nas amended "so as to allow them full pay during the balance of their terms of office and under certain conditions, half pay during the remainder of their lives." The ;i mended act provided in addition that "from and after the first day of January, Anno Domini one thousand nine hundred and twelve, whenever the Governor is of opinion, based upon satis- factory medical evidence, that a judge of the Supreme, Superior, Common Pleas or Orphans' Court, is, by reason of physical or mental disability, permanently incapacitated for performing his judicial duties, he shall notify said judge of his opinion, giving the reasons therefor; and if the said judge shall resign within thirty days after such notice ... he shall receive for the balance of the term for which he was elected if he shall so long live, the salary he would have received Iiad he remained in active service. "An A' judge of the Common Pleas or of the Orphans' Court, so resigning, who shall have served continuously in judicial office for twentv-five years or more, immediately prior to the date of his resignation, and shall have reached the age of seventy years, or anv judge of the Supreme, or Superior Court, so resigning, who shall have served continuously in judicial office for twenty years or more immediately prior to the date of his resignation 196 shall receive during the remainder of his life, after the expiration of his said term, one half of the salary which he would have received had he remained in active service. "Any judge of the Supreme or of the Superior court, who shall have served continuously in judicial office for twenty years or more, and any judge of the Common Pleas or Orphans' Court, who shall have reached the age of seventy years, and who shall have served continuously in judicial office for twenty-five years or more after his honorable retirement from the office by expira- tion of term, resignation, or otherwise, shall receive dui'ing the remainder of his life one-half of the salary which he would have received had he remained in active service." In 1917 the following changes to this bill were made. It was provided that "Any judge of the Common Pleas or of the Orphans' Court, so resigning, who shall have served continuously in judicial office for twenty years or more, immediately prior to the date of his resignation, and shall have reached the age of seventy-five years, or any judge of the Supreme or Superior court, so resigning, who shall have served in judicial office for twenty years or more, at the date of his resignation . . . shall receive during the remainder of his life, after the expiration of his said term, one- half of the salarj^ which he would have received had he remained in active service. "Any judge of the Supreme or of the Superior Court, who shall have served in judicial office for twenty years or more, and any judge of the Common Pleas or Orphans' Court, who shall have reached the age of sixty-five years, and who shall have served con- tinuously in judicial office for twenty years or more after his honorable retirement from office by expiration of term, resignation, or otherwise, shall receive during the remainder of his life one-half of the salary which he would have received had he remained in active service." The revisions made consist in reducing the period of continuous service for judges of the Common Pleas and Orphans' Court from t^-enty-five years to twenty years. On the other hand, the age when a judge of the lower courts may retire was raised from seventy years to seventy-five years of age. The only change made for judges of the Supreme or Superior Court in case of resignation, was, that formerly the twentv years of service had to be "immedi- ately prior to the date of his resignation." Under the amended plan, 'it is only required that he "shall have served in judicial office for twenty years or more." Fiirther modifications made are, that judges of the Supreme and Superior Court, may now also retire at sixty-five instead of sev- enty years of age, having sert^ed twenty years, which need not 221 modern industrial life than is the rate of accidents or of sickness. If it be just that each industry should contribute to the cost of acci- dent compen.sation in proportion to the number of accidents occur- ring, rather than that the entire cost be forced back upon the national treasury, it would seem to be equally just that an industry which 'uses up men by forty-five or fifty-flve years may be made to contribute to the cost of old-age support in a greater degree than another indus- try or occupation in which men can preserve their produciive life until sixty-five. Looking upon it in another way, the justice of the claim may be admitted, that a contribution on the part of the indus- try to old-age insurance is but a deferred wage . . . If, under modern industrial conditions, it coiild be expected that the wage workers themselves would be able to raise the standard of wages to the necessary level so as to include the cost of old-age support, and that they would use this additional increment for that purpose, no compulsory system would be necessarv'. But the compulsory system ih necessary just because these two conditions are found to be im- possible."* (5) It does not burden taxation directly. (6) Com- pulsory insurance is urged because of the fact that more countries huve adopted this plan than any other, and because it has proved suc- cessful in Germany. The objections to the compulsorj' principle of insurance are: (1) It cannot be made universal as it omits many who may need such protection, no less than wage-earners. Tt is pointed out that it can only be made to apply to persons who are in regular employment. It is almost impossible to collect contributions of persons who are irregularly emploj'ed, of agricultural laborers, of those who are their own employers, of women who work at home not for wages, of small merchants, and so forth. (2) It is impossible even through com- pulsion to reach the poorest class of workers who are most in need of old-age support. These people cannot save enough to contribute to pension funds. Thrift among workers who do not receive a living \Aage, it is contended, is a mockery, uneconomic and unsocial. (3) Compulsory insurance lessens the quality of self-help and reliance in the individual. "If this is the country of wealth it is also the coun- try of individualistic ideals and achievements. It was founded to secure individual liberty of thought and action with opportunities for working o\it one's own salvation. This is its peculiar destiny and its special mission, and its greatest contribution to luimanity will be in terms of character rather than wealth. Not for any reason of sentiment, but because our national progress under the individu- alistic ideal has been such as to demonstrate its wisdom and sound- ness do T believe we should take no steps calculated to take us away from this path of development."** ^^^^cial ln™''r|^^anae?; BuUettn of Bureau of Labor StatlsticB, p. 774. •♦Magnus W. AiuABimc , 222 (4) Where the compulsory system is established the sums con- tributed by the insured are practically insignificant. Not only does the state make a direct subsidy to the insured, but it also bears the expenses, which because of the inherent complexities of conduct- ing the administrative machinery, and the recording of facts for a long period of years with reference to contributions, is enormously expensive. It has therefore, been advanced that there is practically no difference between the state paying pensions outright, and collect- ing the contributions by the compulsory principle. (5) Compul- sory insurance is class legislation as it places the wage earning classes under a special regime. It necessitates the creation of a vast bureaucratic system. "It would be nothing but taxation, and being exacted from unwilling subjects, would carry with it none of the good influence of voluntary thrift."* (6) Old age is not a problem of industry alone for people grow old despite all human efforts. "Old age defines itself." (7) The amount of the pension is small and the age set is too high. The pension as paid in Euro- pean countries are, as is commonly expressed, "too little to exist on and too much to die on." (8) Compulsory contributions are in- elastic and cannot be adjusted to tlie particular needs of the various industries and localities. (9) It is un-American, distasteful and contrary to the American spirit. The compulsory principle, it is claimed, is intolerable and would not be accepted by the American cilizens. Mr. Arthur M. Hnddell, a dissenting member of the Mas- sachusetts Commission states the case as follows: "To my mind, com- pulsory insurance is un-American, and cannot be considered in any waj' as a solution of this question. The wages of the workman will not permit of any compulsory assessment for insurance. There is a vast difference between this and compulsory sanitary laws, com- pulsory education and compulsory quarantine laws. A poor man can comply with any of the above laws without ,an expenditure of money or in any way reducing his wages, which he could not do with a compulsory insurance law, as that would be equivalent to a reduc- tion in wages. There is not sufficient margin between the living ex- penses and the wages of the workman to permit that reduction in his wages."** Captain ^Vm. P. White. V. S. X., retired, argues: "We started i" our country as individuals, and up to a comparatively recent time we have insisted upon the individual's right to conduct his life in his own way. The Declaration of Independence says that this Gov- ernment was formed so that we might pursue individually life, liberty and the pursuit of happiness ; but the complications of modern society are bringing about the feeling that upon the whole body of society , 'Charles Booth, "Pauperism And The Endowment 01 Old Age," p. 187. •"Massachusetts Report, p. 337. 223 rests the responsibility for caring for those who in the race have been crowded to tlie wall. And every civilization that lias existed where some part of the comnuinity has depended upon the state for its pro- tection, for its care, has gone to the wall." "There is one great nation that has existed for 4,000 years, and it exists to-day potentially the strongest people on the globe. They have believed in the individnal, or family ; and they will succeed — if they still stick to the idea — after all the rest of the nations of the earth have disappeared. Now, if we want to protect our civili- sation, we have got to insist on individual responsibility. We cannot shift individual responsibility to society. We have got to teach the principles of industry. We cannot allow our young men to grow up in the faith that society in the long run will take care of them, if through their indifference to their own care they should fall by the wayside."* (10) The compulsory principle is also believed to be unconstitu- tional as it obligates certain groups to set aside a certain percentage of their earnings to provide for old age. III. STRAIGHT OR NON-CONTRIBUTORY PENSIONS. Just as the compulsorj' insurance principle was an outgrowth of tl|e failure of voluntary insurance, so is the establishment of straight pension systems a result brought about by the complexities and in- effectiveness of the compulsory insurance principle. Straight pen- sions are comprehensive and immediately effective, as compared with the compulsory forms which require a long term of years before they may work themselves out and be able to cope with the immediate problems. Originally state pensions were given as a result largely of the pressing problem of poor relief. This form of outdoor relief, was an improvement over the indoor relief which bore the brand of pauperism. Under this system neither the employer nor the employe make direct contribiitions. The funds are paid out from the general treasury. Systems of gratuitous pensions have been adopted by Denmark, New Zealand, Australia, France, Great Britain, New South Wales and Alaska and Arizona in the United States. State pensions are usually granted to all persons complying with certain requirements. The specifications usually state that a person before receiving a pension must have attained a certain age; that he must have been a citizen of a long period of residence ; that he must not have an income from any source above the specified amount. And sometimes it is also required that he must have fulfilled a certain period of service. In addition to these, most countries require also, certain moral and character qualifications. In many countries pen- ""isulletin Of U. S. Bureau Of Lahor Statistics, 212, pp. 759-760. 224 sions are denied on account of family desertion, neglect of minor children, drunkenness, or prison sentence. It is generally specified that pensions are given to the "deserving poor." The first of these systems was established in Denmark in 1891. Due to the influence of Lloyd George, a straight old age pension system was adopted by Great Britain in 1908. In 1915, Alaska and Arizona in the United States had enacted similar systems. Although the principles in- volved are the same in all countries, the requirements and qualifica- tions are widelj' varied in the several countries practicing these sys- tems of pensioning the aged people. The non-contributory form of old age relief is one of the most popular and most widely discussed plans. The advantages of this scheme over the voluntary and compulsory systems are as follows: (1) Its simplicity. Straight pensions are given only under definite and well defined conditions ; the amounts are fixed and require little administrative expense. (2) Straight state pensions are just, as it is the duty of the state to take care of its aged poor. This obli- gation of the state, it is pointed out, has been recognized by the lat- ter long ago in its distribution of poor relief. Pensions in old age would accordingly involve only the removal of the stigma and degra- dation of the present system of poor relief. It is claimed that the state, at present, relieves every class of suffering except old age. Pensions are, therefore, aimed to remove the sufl'erings and terror associated with old age. "It is compulsory now upon our citizens to make a living, but if they wish to become criminals, the state will support them. But the man who wants to remain a law-abiding citizen and try to support his family is compelled to provide for old age, when the facts are that he is unable at the present time to secure many of the comforts of life. Every law-abiding citizen has ren- dered to his country some service, which entitles him to look forward to a pension given in return ; and as at present the premium placed upon crime and poverty is un-American, something should be done to provide for the law-abiding, self-supporting citizen."* (3) Al- though nominally non-contributory, it is contended that in reality all have contributed in the taxes they have paid. Mr. Lloyd George pointed this out as follows: "As long as you have taxes upon com- modities which are consumed practically by every family in the coun- try, there is no such thing as a non-contributory scheme . Again, the worker who has contributed by his strength and his skiU to the increase of the national wealth, has made his contributions to the fund from which his pension is to come when he is no longer able to work."** It is thus argued, that those who have given a consid- erable part of their lives in useful service have already made those *A. M. Huddell, "MassachusettB Eeport," p. 338. ••Quoted by Massachusetts Commission, p. 230. contributions to the state and are entitled to freedom from the dread and anxiety of their needs during their declining years, and from the 'brand of pauperism. (4) The cost of the pension could be met considerably by savings on poor relief. The extent to which this would hold true in Pennsylvania is discussed in other parts of the report. (5) Xon-contributory pensions by the state would encour- age people to greater loyalty, ambitions, independence and hopeful- ness. It is argued that, "any change that will increase the feeling of security and confidence with which wage-earners contemplate the future will tend to cause them to make rational provisions for the future." James T. Buckley, another dissenting member of the Mas- sachusetts Commission argues that, "Assurance through a pension, contributory or otherwise, that one's last days would be spent in peace and comfort, with no fear of poverty and want, would have a strengthening influence upon the individual, enabling him to go to his daily task with a calm and contented mind, and would tend to increase 'the sense of personal responsibility and independence.' "■'' (6) Pensions in old age would keep families more closely together. It would increase filial affection and respect for parents. "A pen- sion would bind the family more firmly together, for oftentimes the grandparent with a small guaranteed pension would be a welcome addition to the family of the son or daughter, when without this he would be only in the way."** The chief objections to straight government pensions in this coun- try were stated by the Massachusetts Commission on Old Age Pen- slcms. Annuities, and Insurance, in its report of 1910. This Com- mission concluded that, "The adoption of any scheme of non-con- tributory pensions in Massachusetts, or any other American State, seems inadvisable and impracticable." The reasons given were as follows: (1) The heavy expense involved in such a scheme. The Commission estimated that for Massachusetts to pay a pension of !jt;200 per year or |4 per week for half the population 70 years of age and over, would cost that State not less than |10,000,000' per year. The cost of providing pensions from 65 years of age and on would of course, be greatly increased. The 1910 census gives the popula- tion of Pennsylvania 65 years of age and over as 325,918. A similar estimate for half the population of 65 years and over in Pennsylvania would involve an expenditure of f 32,591 ,800. To this it is argued that the great part of this cost is already paid by the citizens at present by means of the different charita'ble and philanthropic forms. Moreover it is advanced by a dissenting member of the Massachusetts Commission that the argument of heavy expense "is fallacious; for the ultimate expense of any given project is the same, whether that •Md, p. 332. •*Ibld. 226 cost be levied directly upon those who are to benefit by the scheme,,, as in the proposed contributory schemes, or indirectly upon the same bimeficiaries through the medium of the State tax."* Again Dr. Rubiuow argues that "when an institution is to be established, first, its necessity, its usefulness, or harmfulness must be considered, and o]ily then the question of ways and means comes into the fore- ground."** (2) Straight pensions is class legislation as ittaxe« the rich for the benefit of the poor. "There is no real ground for the assertion that because an industrious man has failed to earn a sufiiciency, he has a right to be rewarded for his industry out of the proceeds of a tax levied upon his neighbors, to whom he has rendered no service, or none which has not been paid for in wages."*** (3) Gratuitous governmental pensions would destroy the habit of thrift, as it would lessen the sense of personal responsibility and independence. The case for this contention is stated by a leading opponent of social insurance in this country as follows: "It will un- dermine and tend to destroy the self-respecting character of our people as citizens of a democracy where economic independence, achieved by individual effort, self-sacrifice and self-denial, is, after all, the only aim worth while. However much we may be inclined- to permit ourselves to be deceived by specious arguments of guess work philanthropy into believing the gift is to help the recipient and not to hinder, such gifts, with rare exceptions, are opposed to the principles of character-building and of character-maintenance throughout all the years which constitute the span of human life. . Hold out the prospect that such effort is not necessary, that earnings may be squandered for a thousand and one needless purposes, that restraint upon family expenditures is not required,, and the most powerful incentive which makes for character and growth in a democracy is taken away."**** President A. T. Hadley, of Yale University states : "We need measures which shall increase in- dividual responsibility rather than diminish it ; measures which shall give us more self-reliance, and less reliance on society as a whole. We cannot afford to countenance a system of morals or law which justifies the individual in looking to the community rather than to himself for support in age or infirmity."***** These arguments are refuted by students of the problem by point- ing first to the fact that the great majority of the people who reach old age and who qualify for pensions in the countries having pension systems, is in itself sufficient evidence that there was either no habit of thrift to be destroyed or that the conditions of the wages were *Ibld, p. 332. ••"Social Insurance." p. 281. •••William H. Lackey, Old Age Pensions, p. 103. ••••Quoted by Massachusetts Commission, p. 233. Ibid, p. 240. 227 so low that savings were impossible. It is also evident that the habit of thrift can hardly be destroyed by a pension — which at best, is hardly sufficient to keep body and soul together— rpaid at the re- mote and uncertain possibility of attaining old age. On the con- trary, it is pointed out, it would be an incentive to saving as the pen- sion allowance meeting only the bar6 necessities would enable a per- son with a little savings to spend his declining days in comfort. The Wisconsin Industrial Commission, in its report of 1915 points out that non-contributory pensions do not discourage saving and cites the example of Denmark which was the first to establish such a system, and where after twenty years of experience the number of applicants for old age pensions shows a tendency to decrease rather than the contrary, so that it cannot be said that habits of thrift have declined. "I found in Denmark that the people who had most right to speak with authority on the subject maintain that the law has not acted in a way detrimental to thrift. The Inspector-General of the Sick Re- lief Funds holds that they are more thrifty." (Miss Sellers' evi- dence before Aged Pensioners Committee, 1903, p. 5).* "Whether we take Germany, Australia or Denmark, the answer is the same. Thrift, instead of vanishing before old age pensions, has actually in- creased. There has been more money placed in the German Savings banks since 1891."** The Australian Royal Commission in its report of 1907, concluded that "The question as to whether thrift is discouraged by Old Age Pensions has been enquired into Iby your commissioners, and they have arrived at the conclusion that the fact of a necessitous person being entitled to a pension of 10s. a week at the age of 65 years will not have any appreciable influence on saving habits at an earlier age." Mr. Miles M. Dawson, a leading authority is quoted as saying, "I think there has been an error about pensiojas checking the savings. In any country where it has been adopted, in Denmark, Great Britain, New Zealand, etc., the amount of savings has been continually en- larging."*** (4) It is also contended that non-contributory pensions would lower wages. This argument is based upon the following assump- tion: (a) Because of the direct competition of the pensioned em- ployee, (b) The prospect of a pension in future years would lead workers to accept lower wages than they would otherwise be disposed 1o demand. This it is claimed is the case in the industries where pensions are now established, (c) It would encourage undesirable immigration, as it would invite immigrants from outside the state, and thus depress the \\-age rate by overcrowding the labor market. ~i^ted by Harold Spender, "Contemporary Review, Vol. 93," p. 94. r.i^'SlJtin^of' V. S. Bnreau of Labor StatistlCB, No. 212, p. 778. 228 The fallacy of tlie lii-«t of (hose points has already been pointed out in another place, where it was shown that the number of people still able to do work at the agc^ when pensions are given is very insignifi- cant in Pennsylvania. These men are a vei'y unimportant factor in the labor market. ^loreover, this argument if true, would applj equally as well to any form of savings or even contributions from children. Again as was pointed out before, it is evident that a man with no income whatsoever is a more dangerous competitor in the labor market than the man Anth some means of support. The sec- ond argument is obviously far-fetched. Tt requires a lot of imagi- nation to suppose that the prospect of a \'eiy meager assistance in their old age would alone be sufficient to make wage-earners work for lower wages. Furthermore, it is known to all students that the wage rate paid, at the present time, does not presume savings for old age as a prime element and daily necessity of the working people. While there is some truth that in the industries having regular pen- sion systems the wage rates of certain classes of workers — especially those past their middle age — may be lower than in other industries not having such systems, it is because there is the incentive to work in the one particulai- industry over the other. How a state- wide pension system could have a similar effect is difficult to see. As to the third contention of encouraging immigration it is not borne out by the facts in the countries where such systems are in operation. Long terms of residence within the state is required everywhere, and - immigration, as is well known, is not popular with men past middle age. That a small pension given, when reaching old age would hardly be a sufficient inducement to young immigrants, is self-evi- dent. (5) Straight pensions, concludes the Massachusetts C'Oiamissiou, would have a disintegrating effect upon the family. "A non-contribu- tory pension system would take away, in part, the filial obligation for the support of aged parents, which is a main bond of family solidarity. It would strike at one of the forces that have created the self-sup- porting, self-respecting American family. The impairment of family solidarity is one of the most serious consequences to be apprehended from an experiment with non-contributory pensions."* Mr. A. M. Hnddell, in j)i('senting a dissenting opinion upon this point states: "The facts that are Ijefore us as to the influence of pen- sions on the American family have either been entirely overlooked or misconstrued by the majority of the commissioners. We have before us the pension of the veterans of the Civil War, their widows and orphans, and I fail to find the evidence that warrants any state- n'ent to the effect tJmt tJiis pension by the United States Government has disintegrated the family, or lessened 'fhe filial obligation for the •Report of Massachusetts roniniission, p. .301. 229 support of the aged parents,' or has in any way impaired the family xsolidarity. On the contrary, the ])ensions to the veterans of the Civil War has built up the American family, and the filial obligation of the family has been strengthened and its solidarity maintained. An old person living with a married son or daughter' that is striving to bring up a family and provide for them as an American family should be provided for, and give to the children a proper education, can find a place for the veteran or his widow who receives a pension from the Government in the family, because tliey do not take a\\ay from the family any of the necessities of life, or stop in any way the education of the children. At the same time, the independence of the veteran or his widow is maintained, because they have enough 1o pay for their needs at that period of life . . . With this pen- sion the old veteran and his widow are made comfortable in their old age by living with their children, their friends, or in homes where they are paying their own way, and have a feeling of inde- pendence that old people should have. They know they are not taking away from the family any of the necessaries of life, or hamper- ing the education of the children through any expense of their own support. Any extra expense in the workman's family directly af- fects the education of the child, compelling him to leave school and seek employment to help maintain the family."* The same argument is also answered bj^ Mr. L. W. Squire as fol- lows: "Fortunately or unfortunately, according to the standpoint of religion and economics from which one views the matter, we Ameri- cans have not that concejition of the family, as the unit of society, and that reverence for old age, which is ingrafted upon the heart of the Oriental in all his religious and economic training. In China and Japan it is rare to And any individual in want above sixty years of age, who has not some relative, no matter how remote, whose ethics and religion command him to make a place in his home for the in- digent one, and provide for him as if he were a member of his own immediate family. Almshouses, private indoor or outdoor relief, for the old, are hardly known in those Oriental lands, where high ethical regard for the aged is instilled into the individual common mind from infancy. Unfortunately, however, in this country, no such esteem for the aged one prevails, except among his near relatives and especially in agricultural communities. In our manufacturing cen- ters especially, the helpless, destitute giandfather or grandmother is regarded as a distinct burden to the household, the carrying of which oftentimes forces the children out of school and into the streets, factories, or shops, in order to provide for the added increment to the household expenses which the taking on of an aged relative, no matter how near he may be to the immediate family, entails.''** •Massachusetts Report, pp. 334-335. •*01d Age Dependency, pp. 312-13. 230 Dr. Eubinow puts it this way: "There is a good, old-fashioned, atavistic nobility of sentiment about this argument which will greatly please all good men and women except those who have to be sup- ported by their children, and those who have to support their parents and also their own families on a wage-earner's budget. Scientifically the argument is certainly original, because it assumes the basis of the family to be the support of the older generation by the younger, while it has always been fairly well agreed upon by all students of society that the shoe was on the other foot, and that the care of the children by the parents was the proper function of family. It further seems to assume that we love our burdens, and that when parents cease being burdens the children cease loving them. "It assumes that the standing of a superannuated parent in a family is in an inverse proportion to the amount he is aJble to con- tribute to the family budget. It is an appeal to an ideal of a patriarchal family which has been dead for a century in every in- dustrial country, and which really never had any strong hold upon American life. Of course, its inapplicability to the aged single man or the aged spinster aunt will be evident. For it certainly cannot be claimed that the support of all spinster aunts is also a funda- mental principle of American family solidarity. Then, again, even married people may not have any children, or may have lost them. One must remember that New England was practising race suicide long before the term ever became popular. As a matter of fact, the very data gathered by the Commission shows that of the inmates of almshouses and benevolent homes over twenty-five per cent, were single and of those receiving outdoor relief fifteen per cent. "Furthermore, these data also show how these almshouses and homes do break down the solidarity of the American family. Of their inmates forty-two per cent, had adult children living at time of entrance, of the several thousand pensioners receiving outdoor relief, sixty per cent, had adult children at the time of investigation, and fifty-nine per cent, other near relatives. It is really surprising that the Commission did not recommend discontinuance of aid, both institutional and outdoor, because of the demoralizing effect upon said children and relatives. "However, the same table which conveys the information just quoted shows that while there were children in some 60 per cent, only in 22 per cent, were they able to render aid; that this propor- tion was only some 10 per cent, in case of the inmates of homes, and about 50 per cent, in case of persons receiving outdoor relief. More- over, it appears from another table that some 40 per cent, were re- ceiving aid from children or relatives, as outdoor relief is seldom bountiful."* •Bublnow, "Social Insurance," pp. 814-15, 2J}1 From the Commission's studies it was seen that in the case of both almshouse and benevolent institution inmates, more than sixty-flve and a half per cent, had no children living. Of the aged applicants for relief, about forty per cent, had no children, and among the gen- eral aged population, altho the percentage of those having no children a+ all was little more than ten per cent., only 24 per cent, of the aged were actually supported by children, while 43 per cent, had no other sources of income. (6) Straight pensions are objected to also because they resemble charity much more than a system of insurance in which the worker makes a contribution. This, however, depends largely upon public opinion. Considered in -the light of deferred real wages instead of poor relief, the receipt of a pension would not involve any degrading eflFects. (7) Non-contributory pensions by the state, argues the Massa- chusetts Commission will result in "mischievous political effects. It would open the door to political favoritism of various sorts." Wil- liam H. Lacky contends that "Such a question would infallibly pass into the competitions of party warfare. It would become in most constituencies one of the most prominent of electioneering tests. Rival candidates would be competing for the vote of a wage-earning electorate who had a direct pecuniary interest in increasing or ex- tending pensions and in relaxing the conditions on which they are given. Can it be doubted that in many cases their first object would be to outbid another, and that national and party politics would soon be forced into a demoralizing race of extravagance?"* (8) The constitutionality of such a scheme is also questioned by the Massachusetts Commission. Strangely enough, however, it ad- mits that firemen, policemen and teachers A^'ho "are not only rendering peculiarly hazardous meritorious services to society, but also have deprived themselves of the full opportunity of earning the largest returns for their services in a competitive way . . . have some claim upon the State for special consideration in the mat- ter of public support in old age. This claim, however, cannot exist in the case of persons employed in the ordinary competitive cnllings." The fallacious method of the Commission's reasoning at this point is self-evident. The basis of the Massachusetts Commission's opposition to the non-contributory system may be seen summed up in its concluding paragraph as follows: "A non-contributory pension system is simply a counsel of despair. Tf such a scheme be defensible or excusable in this country, then the whole economic and social system is a failure. The adoption of such a policy would be a confession of its breakdown. To contend that it is necessary to take this course is to trj^e roram, Volumn 28, p. 699. 232 assiime that members of the working cla-sw either cannot earn enough, or cannot save enough, to talie care of themselves in old age. If that be true, then American democracy is in a state of decay which no sys- tem of public doles could possibly arrest, but would rather hasten."* IV. THE gasp: for and against universal and PARTIAL SCHEMES. When either the compulsory-contributory, or non-contributory pen- sions are discussed the question whether they shall be universal 01 partial, is to be taken into consideration. The universal schemo involves a total change of front as to the policy of public relief It is based no longer upon the theory of relief of destitution only. It aims tu extend pensions to all, or almost all, the aged over a certain age Vi'ithoot any conditions. The funds to be drawn from the common purse. This would necessarily involve a steady increase in both the number of persons and cost and would, as stated by Sir Gharles Booth, mean that "the policy of doing so is the opposite of that adopted in savage states, where the old, when incapable, are knocked en the head." No such system, however, is as yet, in operation any- where. The principle of partial insurance or pensions is, as was pointed out before, established now in many countries. Pensions established now by foreign countries are given only to men anri women belonging to certain wage groups or to persons having ful- filled certain specified requirements. The universal principle is advanced principally, because, it is argued, if pensions were offered to all aged persons, it would remove eiitirely the savor of dependency or paiiperism. Charles Booth, the foremost advocate of universal pensions in Great Britain, presents the case for such a system as follows: "The idea in the minds of those who think that poverty and desert should be the conditions of relief, tend rather to an elaboration of the Poor Law, which by classi- fying those who ask its aid and varying the awards, shall make them ill-' often a mark of merit as a stigma of disgrace. I must confess that this, to me, appears an impossible ideal. I can imagine no court ot inquiry that could be trusted. I believe that the selected poor who receive pensions or were provided for in almshouses, to which only their poverty and their good conduct entitled them, would still be considered and consider themselves paupers, by whatever name they might be called. If to obtain a certificate of merit involved :i searching inquiry into the past life of each applicant, it would, I believe, be strongly resented, and most of all by the most worthy. Even the simplest form such an inquiry could take, limiting itself to proof of thrift, would be unsatisfactory, as the best proof of thrift "Report of MassachiLsetts Comniission, p. 310. 233 v.f^uld always lie in having no need to apply.* He further argues: ■'Indoor relief lacks humanity and outdoor encourages improvidence. We are therefore justified in seeking some better plan. Pensions at 65 are suggested, to be acquired voluntarily with state aid. But, to be effectual, the system must be universal, or the improvident would still trust to the rates (outdoor relief), and their treatment un- ceasingly oscillate between foolish kindness and unpopular severity. I r the system is to be universal, it must be compulsory ; and if com- pulsory, its cost, however collected, is taxation. Moreover, to be sat- isfactory, the system must apply to the old of our own time. We shall not tax ourselves for a benefit only to be realized after ■iO years have passed. But if this system is to be universal, and to apply to our own old people, the forms of insurance become absurd. Why ear- mark the payments and accumulate funds at all? It is not insurance Me require, but the endowment of old age."** In another connection he states: "Benefits which all may enjoy carry with them no slur. Educational endowments are enjoyed by the rich, free elementary edu- cation as bestowed upon the poorer classes, the facilities offered by free libraries, etc., are cases in point. Pensions open to all and paid for out of taxation would have nothing, either morallv or eco- romically, in common witli pauperism."*** And again, "No other plan of selection is possible except at sacrifice of independence. To select the poor is to pauperivse, to select the deserving is to patronize. To do either is to humiliate."**** In favor of the universal plan is also urged its simplicity and cheapness of administration. This system requires no complicated or troiiblesome conditions of eligibility, nor does it entail many details. Many of the objections to the universal plan have already been stated in the discussions of the compulsory and non-contributory systems. What has been brought against the former systems may apply equally as well, and even more so, against the universal scheme. Additional objections offered are: (1) Its increased cost. A uni- versal scheme is obviously the most costly of all pensio;i systems, and, it is pointed out, that to give a pension to all people— to well-to-do and wealthy who do not need them— is a waste of money. (21 There are also objections against the giving of pensions indiscriminately to undeserving persons such as criminals or paupers. "The inclusion of criminals and paupers within the pensionable population is indefen- sible on any ground of individual desert or public policy. Such per- sons clearly have no claim to a pension, whatever may be truo of the deserving and respectable aged poor. Moreover, the policy of pen- sioning the industrious and thriftless, the sober and the intemperate. — triT les Booth, "Pauperism and the BDdowjnent of Old Age," pp. 181-182, .•Knnt)i •■Pauperism," p. 23.5. , , ..?Q",otod hy Jiassachnsetts Commission, ,.. 241. ...•Booth. "Pauperism," p. 237, 234 the deserving and the undeserving, indiscriminately, would be in the highest degree pauperizing and demoralizing. It would put a pre- mium upon thriftlessness and dependency."* (3) It is also argued that any such state-wide scheme has no finality to it. Once embarked upon a venture, there would always be the agitation and temptation to reduce the age of pensioning and increase the pension amounts. (4) Under a universal scheme there would be even lesser means of preventing fraud and imposition. This, it is pointed out, is continu- ally taking place in array pensions. (5) The pensioner may dissi- pate his income on the day when it is paid. The pension, it is also claimed, would benefit little, those who are too old or infirm to live alone. ♦Report of Massachusetts Commission, p. 243. CHAPTER IV. OLD AGE PENSION SYSTEMS OF FOREIGN COUNTRIES. INTRODUCTORY NOTE. The aim of this chapter is to present briefly the different systems adopted by the various countries to meet the problem of aged depend- ency. An attempt was made to bring the data up to date. This was only partly successful, however, as the literature and statistical mate- rial from European countries, readily obtainable under normal condi- tions, have been very meager during the past few years on account of the war. A careful search of the files of the libraries of the Congress, Federal Labor Department, American Association for Labor Legislation, and the New York public library failed, to disclose more complete information. Most of the data incorporated in this chapter have, therefore, been taken from recent studies, such as, the "Report of a Special Inquiry Relative to Aged and Dependent Per- sons in Massachusetts," 1916 ; I. M. Rubinow's "Social Insurance," 1913, and such bulletins of the International Labor Office as were available, in addition to the various official government publications that have recently reached this country. It is interesting to point out that, altho, the consideration of the subject of old age pensions is comparatively recent in this country, it has been discussed and has constituted a problem of great significance, in many countries, for more than a half a century. At the present time, at least twenty-one foreign governments — including all the leading countries in Europe —and three States in the Union, as well as the Territory of Alaska, have enacted legislation of one form or another to cope with this problem. The divisions in this chapter are made in accordance witli the nature of the pension system in existence, i. e., either voluntary, compulsory, or non-contributory. The countries in each division are presented in alphabetical order. I VOLUNTARY AND SUBSIDIZED SYSTEMS OF OLD AGE INSURANCE. BELGIUM. The Beli^ian "General Savings and Retirement Fund" was origin- ally established in 1850. During the 50 years which followed, several attempts were made to attract a greater number of people into the (235) 236 fund by reducing the minimum of deposits, by influencing children from 6 to 14 years of age to join the fund, as well as by appropria- tions for annual subsidies by the national and provincial govern- ments to mutual aid societies, who induce their members to join tlie fund. Little success, howevei', was achieved thru these measures, as far as solving the pressing problem of old age relief. The law of 1900 was, therefore, enacted which sought to encourage wage-earners to provide annuities for old age, by assisting theui thru state contributions and by giving special grants to the needy aged. The law provides that any person over IS years of age may pay into the fund for himself or for another person. The depositors are not required to nuike regular payments either at fixed periods or of a fixed amount. Minimum deposits, however, are one franc (19 cents). The law excuded from benefits those classes who pay above a cer- tain minimum amount in taxes or licenses, and state officials who are entitled to old age pensions by virtue of existing hnvs. The age when annuities are payable is set at 05, and the amounts of the annuity cannot exceed 1,200 francs (.'52.''1.60). The government adds its contribution in the form of premiums which are added to the sums paid by the insured. Governmental premiums cease when the sums ciedited to the insured are sufficient to secure an annuity of 3fi0 francs (|72.00). Originally the governmental allowances were rather small and did not prove sufficiently attractive to the old people. The amounts were, therefore, increased in 1003, so that the government gave an allowance of one hundred per cent, on the first six francs ($1.16) deposited by a person, who on January 1st, 1903, was between the ages of 40 to 45 ; for those persons who were between the ages of 45 to 50 on tha.t date, the subsidy rose to 150 per cent, and amounted to 200 per cent, on the first 6 francs (|l.lfi), to those per- sons who were 50 years old at the time the law was enacted. The effect of these subsidies may be seen from the following figures. "In 1890 the number of insured was only 10,000 and undei- the influence or the subsidies began to grow, though slowly, and by 1899 it amounted to 1G9,000. The systeUiatic granting of subsidies ordered by the act of 1900, in one year doubled the nundier of depositors. In 1902 it reached half a million. The increase in the rate of subsidies in 1903 brought the number to 036,000, and by 1910 it was well over 1,000,000."* To meet the immediate problem of old age relief, the Belian gov- ernment in addition to subsidizing savings, practically established a system of temporary straight old-age pensions. A straight pension was given to all persons 65 years of age and over, if they w^ere Bel- gian subjects and had been residents of Belgium for at least one yeav prior to their application for relief. They must also have been work- •I. M. UubinoTT, "Social Insurance." p. S42. 1>37 men, which is defined as, "men and women habitually working with their hands for an employer, in consideration of a wage, whether such Avork be performed on time wage or piece wage, at home or away from home, and whether it be domestic, agricultural, industrial or handicraft work."* The applicant must also be in want, which means one whose resources are under ordinary circumstances insuf- ficient to enable him to support himself and his family in accordance with the standard of comfort prevailing among workmen of his trade in the district in which he resides."** The amount of the straight pension given is very small, namely, 65 prancs (|12.55). The law also provided that persons who were not less than 55 years of age in 1901 Avere to get a similar pension when reaching the age of 65. But those between the ages of 55 ant in eases of invalidity or disablement, no annuity shall irwonty-fourth Annual Report of Uiiits-d States Commission of Labor, Vol. 1, p. 511. • »Thid.. D. 512. 238 be payable before the age of 55 years. If the annuitant dies before the expiration of the specified number of years, the annuity must be paid to his legal representatives for the remaining number of years, unless agreements to the contrary have been made between the State and the annuitant. The system of government annuities is in charge of a superin- tendent of government annuities in the department of trade and commerce. Payments are made in three forms: weekly payment, yearly payment, and single payment. The rates for females are somewhat higher than those for males. Premiums may be paid to the departent directly or to any postmaster. Any person between the ages of 5 and 85 may purchase an annuity, and any contract providing for the annuity to commence at a greater age than 85, is subject to the same terms of purchase price, as if the age were exactly 85. Plans are also provided by which employers may co-operate with their employes in the purchase of annuities. In addition to this voluntary insurance system against old age, the government has also provided for the benefit of the employes of the Inter-colonial Railways and Prince Edward Island Railways, a separate fund which was established by the Act of March 27th, 1907, and which was later amended in 1908 and in June 1913. Under this fund, the insured persons and the state contribute equal shares, the latter's contribution, however, cannot exceed $100,000 per annum. The employe's first monthly contribution is fixed at three per cent, of the monthly wage, and the remainder at one and one-half per cent. Pensions are given, (1) to those who have attained the age of 70; (2) to those who have become physically or mentally incapa- ciated; (3) to persons who have attained the age of 60 and wish to be retired from service (after 15 years of service in all the three cases) ; (4) to persons permanently disabled, as a result of injuries while at work, and (5) to persons who at the time when the act was passed have already reached tlie age of seventy and who have been at least ten years in the service. The amount of the pension is based on one and one-half per cent, of the average monthly pay re- ceived during the 8 years immediately preceding the granting of the allowance, multiplied by the number of years. of service. The maximum, however, is $20 per month, and cannot be more than two- thirds of the average monthly wage. It is also provided that before an employe can become entitled to participate in any of the benefits he must serve 6 months on probation, during which period he must contribute to the fund. ITALY. The Italian "National Institution For the Insurance of Workers Against Invalidity and Old Age" was establish in 1898. Since then 239 it has been amended several times. It is a system of voluntary in- surance for wage-earners as expressly avowed in its name. Its pur- pose is to offer protection against old age to manual laborers, and other citizens who pay a tax not exceeding 30 lire (|5.79) per year. Other classes also may insure themselves but have no right to the special subsidies. In the beginning, the government appropriated ten million lire ($2,000,000) and provided, in addition, certain other revenues, for the fund. The pensionable age is 60 years for men and 55 for women. Men employed in mines, furnaces, glass factories, foundries, railroads, etc., may be pensioned at 55. The pension may also be postponed to 65, in that case, increasing proportionately. The amount to be deposited annually is left to the discretion of the insured, but a minimum of six lire ($1.16) annually is required, no single contribution of which is to be less than 1 lire (19c). For the special industries mentioned, the minimum is nine lire. The government's contribution must not exceed ten lire (|1.93) per annum. Twenty-five years of contribu- tions is required, but this period may be reduced for persons ad- vanced in years; and special subsidies are also provided for those whose acquired pension would be too small. In case of permanent invalidity — which means the reduction to less than one-third of the normal earning capacity — payment of annuities is allowed after five years of contributions to the fund have been made. A special inva- lidity fund has been created for this purpose, and special benefits are given to invalids. The amount of annuities range from 120 lire (|23.16) to 360 lire (.^69.48). At the end of 1910 the total number of accounts opened was 300,000 amounting to some ,f5,000,000. The number insured, according to Dr. Eubinow, after twelve years of the fund's operation, constituted only 2 per cent, of the total population gainfully em- ployed in that country. He also claims that "the period of greatest growth for the Italian system seems to have passed. In 1906 over 50,000 new accounts were started, in 1907, 35,000, and in 1908, less than 29,000."* •The fienres presented by Dr. Bnbinow, In his book on "Social Insurance," page 343, give the number of new persons insured in 1906 as 150,000. This is, doubtless, a result of a typographical error as the "BoUettino Dell UfBcio Del Lavoro, 1904 to 1909, and Die Arbeiter-Versicherung Im Auslande Dr Zacher, (emoted in the Twenty-fourth Annual Report of the United States Com- missioner' of Labor, Vol. 2, p. 1895, 1909), give the total number of insured during that year as 50 791. The figures given in the same table for the entire period — 1899 to 1908 — ^however, do not seem to warrant his conclusions. The table follows: Year. 1S99, 1800, — 1901, 1902, — 1903, — Total Insured during year. T7« Tear. 1904, Total Insured during year. 31,429 10,279 1905, 23,680 20,324 1906, 60,791 .. 64,470 28,779 1907, 1908. 35.160 _ . 28,695 240 The Italian syistein has also a compulsory feature for the employes of the following governmental industries: tobacco, engraving and printing, salt works, railway employes, employes in the shipping in- dustry and sailors. The age of pensioning for these groups is the same as in the voluntary system. The monthly contribution required i! lire for men and one lire for women. The minimum pension is 480 lire (,?92.64) for men and 300 lire (|57.90) for women. The state's annual contribution i^34 lire, l|6.56), for men, and 22 lire, (|4.25), for women. MASSACHUSETTS SYSTEM OF SAVINGS BANK, LIFE INSURANCE AND OLD AGE ANNUITIES. The Massachusetts system of savings bank insurance was devised and sponsored by Supreme Court Justice Louis D. Brandeis, and the ^Massachusetts Savings Insurance League. The system first went into operation in June, 1908. The State law authorizes savings banks to establish insurance departments which may issue policietj upon the lives of persons, and sell annuities in accordance with tlie regulations provided by the State Insurance Commissioner. These savings banks have no stockholders and are operated solely for the benefit of the depositors. The author of tlie plan stated that the purpose of the act was: (1 ) "to give Massachusetts wage-earners an opportunity to secure safe life insurance at the lowest possible cost, as a substitute for indus- trial life insurance; ... (2) To give to Massachusetts wage-earn- ers an opportunity to make provisions for their old age by the pur- chase, out of current earnings, of annuities at the lowest possible cost. (3) It is also designed to furnish a partial solution of the problem of providing for the superannuated workingman, by making the opi)ortunities for saving the workingman's money as numerous as the opportunities for wasting it."* Under the savings bank insurance system the following forms of in- surance are offered to residents of the Commonwealth of Massachu- setts, or persons regularly emplo.yed therein: (1) Straight Life In- surance; (2) Twenty Payment Life Insurance; (3) Twenty Year En- dowment Insurance; (4) Old Age Annuities; (5) Combination Insur- ance and Annuities and (6) Immediate Annuities. The maximum life insurance policy written is .f4,000 and the maximum annuity cannot be for more than |800 per year. The expenses involved in the administration of the savings bank insurance is borne largely by the State. In order to reduce the ex- penses involved in this form of insurance, banks are not permitted to employ paid solicitors or house-to-house collectors of insurance "Report of Massachusetts Coinmission, pp. 191-92, 1910. 24 i premiums. In addition, dividends to stockholders are also elimin- ated. As a result of this, it is claimed, that savings banks are able to offer insurance at considerably lower rates than the rates formerly charged by commercial companies. In addition, every policyholder at the end of each year receives a check from the bank representing his share of the net profits of the business. This distribution of profits, it is contended, has tended not only to reduce the number of l.ipses but also to encourage savings bank deposits. The following table shows the amounts of the monthly premiums for the ditferent policies : TABLE NUMBER 11 Monthly Premiums of Some of the Old Age and Comhination Insur- ance Annuities. Old Age Annuity . Combination Insurance and Annuity. Beginning Annuity at Age $200 Annuity at $200 Annuity at $250 Insurance and $260 Insurance and Age 60. Age 65. $200 Annuity at Age 60. $200 Annuity at Age 66. 15 ti.es $1.06 $1.89 $1.28 18 1.76 1.10 1.97 1.33 17 1.84 1.16 2.U6 1.38 18 1.94 1.20 2.15 1.44 19 2.04 1.26 2.25 1.50 20 2.14 1.32 2.36 1.57 21 2.24 1.38 2.47 1.64 22 2.36 1.46 2.69 1.71 23 2.48 1.54 2.72 1.79 24 2.62 1.62 2.85 1.87 25 2.76 1.70 2.99 1.96 26 2.92 1.78 3.16 ' 2.05 27 3.08 1.88 3.31 2.U 28 3.24 1.98 3.49 2.25 29 3.44 2.08 3.68 2.36 30 3.64 2.20 3.89 2.48 31 3.84 2.32 4.11 2.61 32 4.04 2.44 4.35 2.74 33 4.34 2.58 4.61 2.89 34 4.62 2.74 4.89 1 3.03 35 4.92 2.90 5.19 1 3.22 36 5.24 3.08 5.53 ' 3.40 37 6.60 3.28 5.89 3.60 38 6.00 3.48 6.29 1 3.82 39 6.44 3.70 6.76 ' 4.05 40 6.94 3.96 7.24 4.31 41 42 48 44 7.48 4.22 7.79 4.59 8.08 4.52 8.40 1 4.89 8.76 4.86 9.09 ! 5.23 9.54 5.22 9.88 ! 5.61 45 46 47 48 49 10.42 5.62 10.78 6.02 11.44 6.06 11.80 ' 1 6.48 12.62 6.58 12.99 ! 7.02 14.02 7.14 14.3fl 7.58 15.66 7.78 16.06 ' 8.25 60 51 52 17.66 8.52 18.07 i 9.00 20.12 9.38 •20.64 1 9.87 23.18 10.. 36 23.63 10.88 16 242 Monthly Premiuws of Some of the Old Age mid Oomhination Insur- ance Annuities — Continued. Old Age Annuity. Combination Insurance and Annuity, Beginniner Annuity at Aee $200 Annuity at Age 60. $200 Annuity at Age 65. $250 Insurance and $200 Annuity at Age 60. $250 Insurance and $200 Annuity at Age 66. 63 64 S:7.1b 32.50 11.54 12.92 27.62 32.97 12.07 13.48 55 56 57 68 59 40.00 14.60 16.68 19.28 22.66 27.20 40.48 15.19 17.29 19.92 23.32 27.88 60 33.56 34.29 The following table also shows in detail the growth of the system since its inauguration: Amount of Insurance in Force. — February 8, 1919. No. of Policies, 22,176. Amount of Insurance, $10,323,226. GROWTH IN TEN YEAKS. Tear Total Premium Income Ten Tears. Number ol Policies in Force Oct. 31. Insurance in Force. Death Claims. 1909, . $25,377.29 68,890.68 76,348.92 102,832.27 124,205.08 139,757.35 164,058.96 212,885.24 261,562.27 317,475.73, 2,621 3,318 6,063 6,652 8,054 9,439 10,892 14,030 17,850 20,709 $992,761 1,367,363 1.956,038 2,528,809 3,150,806 3,566,778 4,341,205 6,041,754 8,161,144 9,732,239 $500 1910 3,622 1911, _ , 8,638 1912, „ 6,613 1913 - - 10,679 1914, 9,706 1915, --- - - 12,477 1916, 27,984 1917, „ 24,386 1918, 83,237 $1,483,393.79 $182,742 For the ten years the system has been in existence, the total in- come is as follows: Premium income during ten years, $1,483,393 79 Interest income during ten years, 201,140 55 Deferred and uncollected premiums, etc., 54,178 24 Accrued interest, 14,623. 07 Total, $1,753,335 65 243 The amounts disbursed were: Paid in settlement of death claims $182,743 01 Annuities paid, 2,168 36 Paid policyholders in cash on surrender of policies, . . 100,095 48 Paid policyholders in cash dividends, 182,298 57 Dividends apportioned (1919), 45,818. 86 Total paid policyholders, $513,574 28 "From the above," writes Miss Alice H. Grady, Secretary of the Savings Bank Life Insurance, "it will be observed that there is reserved for the benefit of policyholders, or has already been paid back to them, amounts aggregating $1,585,844.01, that is, a sum largely in excess of the total amounts received from all policyholders since the system was put into operation. This is a most encouraging demonstration of the excellent earning power and conservative man- agement of the four banks which have been licensed to establish life insurance departments." The different insurance banks have agencies in large manufac- turing and commercial establishments, people's institutes, social set- tlements and trade unions. At the present time, the four banks having insurance departments, have established also forty-five public agencies in savings banks; nineteen public agencies in trust com- panies; 225 agencies in mills, shops and factories, and 20 other public agencies. The advantages of this insurance consist not only in its cheaper rates, but many other beneficial effects are claimed to have been brought about by these banks. Miss Grady claims that: "Coinci- dent with the establishment of savings-bank Ufe insurance in Massa- chusetts, the big industrial companies not only improved the condi- tions of their policies but also reduced the cost of their weekly pre- mium insurance about 20 per cent. The great significance of this re- duction has become increasingly apparent as the years have come and gone. For instance, during the year 1915, the wage earners of Massa- chusetts alone paid to the industrial insurance companies on weekly premium policies the astonishing sum of $12,000,000. Had it not been for the reduction in cost above referred to, it is a fair assumption that the amount paid to the industrial companies last year by our Massachusetts alone paid to the industrial insurance companies on weekly premium policies the astonishing sum of $12,000,000. Had it not been for the reduction in cost above referred to, it is a fair as- sumption that the amount paid to the industrial companies last year iby our Massachusetts people would have been not $12,000,000 but $15 000,000. Those $3,000,000 remain in the pockets of the Massachu- setts wage earners or have been used by them to purchase other necessities of life. Bearing this in mind, it is not difficult to under- stand why the State is wiling to contribute the modest sum of $20,000 244 a year toward the support of an institution wliich has been instru- mental in bringing about this immense annual saving to our people. One might even go so far as to hazard the suggestion that the people of Massachusetts aie getting an extraordinary good return on an exceedingly small investment.'"* The extent that voluntary insurance against old age may be ex- pected to relieve tiie problem of aged dependency in the United States, may be seen from tlie experiences of the Massachusetts sys- tem. On February s, 1919, after ten years of existence there were in force 14,085 level premium life insurance policies amounting to 17,396,826; 8,091 employes group insurance policies amounting to 12,926,400 and only 215 old age annuities amounting to $30,468. The total annuity contracts written since 1908 was 288, of which four were terminated by death, 20 terminated by surrender, six more by lapses and 4;j changed to other forms of insurance. These figures show clearly to what extent voluntarj^ insurance is succeeding in the United States. Miss Alice H. Grady, altho, admitting that "from the above it might be inferred that the people are not willing to purchase annui- ties," contends, nevertheless, that "this inference is not entirely cor- rect, the simple fact being that the people do not know about them. For lack of funds we have not yet been able to demonstrate what could be done by means of an educational campaign to teach the people what deferred annuities are and the advantage of this form of savings against old age. "We believe that if the time shall come when we are able to bring home to our people, by means of a systematic educational campaign, the knowledge and benefits of this system, we shall find them both intelligent and responsive to this form of appeal, and ready to make voluntary saving against old age, as they are now learning to do against sickness and death." SPAIN. The "Spanish Old Age Insurance Institution" was established in 1908. It is chiefly modeled after the Italian system. It provides in- surance for wage workers and state employes. Salaried, or official employes, may be insured if their earnings do not exceed 3,000 pesetas (•17579) per year. The amount of the pension to be secured is left to the discretion of the insured. The maximum amount, however, is I 500 pesetas (.52S9.50) per year. The amount of the subsidy is also left to the discretion of the directors of the institute but must not exceed 12 pesetas ($2.32) per person, during the first ten years of the institution's existence. For the benefit of those who were of ad- vanced years, at the time of the establishment of the institution, spe- cial subsidies are granted. State subsidies are given only to those persons A\'ho have nmde some payments into the fund during the pre- 245 ceding year. The lattei" are denied also to tliose who are receiving pensions either from the government or private sources and to tliose classes who pay a direct tax above a certain sum. The participants ir the state subsidies must also be Spanish citizens, living in Spain, and over l,s years of age. The government has endowed the fund at its inauguration with 500,000 pesetas (!»(i,50()). In addition it contriliutes annualy not less -than 125,000 pesetas (|24,12o). The insurance fund is kept separated from the government treasury and there is close relation between the national insurance institution and other old age insur- ance funds. Altho the government encourages private insurance in- stitutes, it does not grant them subsidies. SWITZERLAND. In Switzerland there are two contonal insurance organizations, the Social Insurance Fund of Canton Xeuchatel and the Old Age Insurance Fund of Canton Vaud. The former is a mutual organiza- tion with optional membership which was esta))lished by the cantonal IpAv of May 1."), 1906, and which enjoys a contonal subsidy. It pro- vides straight life insurance policies as well as mixed and annuity policies. Of the total number of policies during the year 1913, 6,620 poli- cies, representing insurance to the amount of .$1,242,920, were straight life insurance ])olicies, and 7,707 policies, representing |;2,653,750, were mixed policies and TATt policies, representing .|50,180, were annuity policies. The Old Age Insurance Fund established in Canton Vaud, by the law dated March 2, 1907, combines old age insurance with various forms of savings deposits. The premiums or deposits may be either definite or provisional; the latter may be withdrawn within 10 years after payment. The principal purpose of this is to enable employers to provide old age insurance for their workmen without being com- pelled to risk losing such payments, in case of tlie premature deatJi or disability of the insured. This insurance fund also makes special efforts to encourage deposits by women and children, especially school children. The cantonal government further makes very liberal contributions to the premium or de])osits of citizens of the Canton, who are industrial tradesmen or workmen, whose annuities do nor fall due before their 55th year, and whose annual premiums or deposits range from 6 francs (fl.Kl) and do not exceed (iO frano (I11.5S). The total number of the insured during tlie years 1912 and 191."! Avere 13 823 and 14,096 respectively; the total premiums received were $30 111 and |33,531, to which there was added |15,052 and .fl6,604 246 cantonal contributions. The total payments to the insured amounted to only $470, and |724, respectively. The comparatively low pay- ments are explained by the fact that the fund has been in existence a short time.* WISCONSIN. A State Insurance System was established in Wisconsin in 1911. The State sells both annuities and life insurance. Unlike the Massa- chusetts plan, the expense of administration is not borne by the State, but is paid from the insurance funds. No detailed information is available. II. COMPULSORY-CONTRIBUTORY OLD AGE INSURANCE. AUSTRIA. Agitation for a system of insurance for salaried persons, private officials, etc., began in Austria as early as 1888. A bill for that purpose was introduced in 1901. The first such law, however, did not come into effect until January 1st, 1909. This act provided a lim- ited system of contributory old age and invalidity insurance, re- stricted to certain classes of salaried employes. This act was amended in essential respects by an imperial decree on June 25, 1914, and was intended to become eiSective on the first of October, 1914, but due to the outbreali of the war, an order dated August 24, 1914, provided that the benefits should be retroactive as from the First of August, 1914. While the object of the insurance is to build up a right to an invalidity or old age pension for the insured person himself, it differs from most other compulsory schemes, as it is not a system of working class insurance, but rather of the middle classes. Only the following classes are compelled to insure themselves. (1) Employes working in Austria, who have the character of officials by virtue of their posi- tion; (2) those engaged in duties of a preponderately intellectual character, both of which groups must have at least a total annual in- come under one and the same employer of 600 kr., (Ifl21.80) ; (3^ those engaged in the managements of works or departments of works ; (4) supervisors over the work of other persons, and (5) those serving on the staffs of offices and counting-houses. Salesmen and othev clerks, come under the compulsory insurance only if they have re- ceived the required higher education. The law does' not compel to insure those engaged in domestic service or as workers and appren- tices in the production of goods, in industry, mining, agriculture and forestry. Exempted from the compulsory insurance are also, persons who do not enter an employment to which the insurance applies until •Economic World, New York, June 24, pp. 826-828, ) 2iT they are 55 years of age; employes of the state, commune, etc., for whom other provisions have already been made, but only in case their pension is higher than the lowest provided by the law. A number of other classes of employes are also exempt. The obligation to insure begins at the end of the 18th year. The insured are divided into six classes, according to their annual sal- aries which range from 600 kr. (|121.80), for the lowest class, to over 3,000 kr. (|609) for the highest class. Allowances, gratuities, etc., are included in the total income. The premiums paid monthly for the six classes range from 6 kr. (|1.22) to 30 kr. (|6.09). The employer pays two-thirds of the premium in the four lower classes and one-half of the premium in the two higher classes. In case of an annual income over 7,200 kr. (|1,461.60), the employe has to pay the whole premium himself. An old age pension is paid, in the case of insured men, either after 4C years of contribution at any age, or may be paid after 5 years of contribution on reaching the age of 70. In case of women, only 35 years of contributions are required, when the age of 55 has been reached, or after 5 years of contribution after reaching the age of 65. The amount of the pension varies with the salaried classes and the number of contributions made. The pension ranges from 180 kr. (136.54) for the lowest class, to 270 kr. (,^54.81) the second class; 360 kr. ($73.08) the third class; 540 kr. (|109.62) the fourth class; 720 kr. ($146.16) the fifth class, and 900 kr. (fl82.70) for the sixth class. The reduced pension amounts to two-thirds of the fixed one. . Pensions of half the amounts are also paid to the widows of insured persons, who drew an invalidity or old age pension during their lives or have acquired a right to such a pension. The administration is under a central pension institution and its local ofiSces. In 1911 there were 108,311 persons insured in Austria. The State also has a compulsory old age pension fund for the gov- ernment mining employes which was established in 1854. The State pays one-half of the contributions to that fund. CHILE. In February 1911, a law was passed in Chile requiring state rail- roads to establish a savings fund for the retirement of incapacitated salaried employes and workmen and for the compensation of persons injured in the service. The fund is constituted (1), by deducting 5 per cent, from the employes' wages; (2) by retention of the first monthly increase in pay (3) by the accumulation of fines and penalties, unclaimed pay,^ etc. and (4) by adding 54.8 cents out of every $365 of receipts. 248 Office employes who have been in the service for 10 years and who are completely incapaciated for work, may be retired with as many tonrtieths of 75 per ctMit. of earnings as their years in service Day hiborers employed in tin; maintenance of ways, etc., having ten years (tf service and totally incapacitated for work may be retired with 50 per cent, of wages. Persons engaged in the upkeep of rolling stock, 65 years of age, 30 years in the service and incapacitated for work, retire with 50 per cent, of wages. The year's work must be of not less than 250 days. Persons permanently incapacitated because of accident are compen- sated by the payment of full wages. FRANCE. After experiences with voluntary and subsidized insurance schemes lasting for more than half a century, France in 1910 was the flr^t country to follow Germany's example in adopting a national com- pulsory system of old age insurance. Since its first enactment it has been amended several times, chiefly by the acts of September 30th, 1912; August 17th, and December 25, 1915. The present law pro- vides that all workers (salaried or wage-earners) earning less than 3,000 francs (.';579i, must take out old age insurance. State em- ployes who do not come under the regulations of civil and military pensions are also required to insure themselves. The law has also exempted several large industrial groups who were already protected by more liberal compulsory provisions. The insuring of a person may begin from the age of 12. The contributions are of three kinds, depending upon the age or the sex of the insured person. Adult males pay 9 francs {|1.34) per year; adult females 6 francs (i?^l.]6i per year; and minors under IN years of age pay four and one-half francs (.f0.y7). The employer is re- quired to duplicate this contribution and is also made responsible for the entire payment of the premiums. He is permitted to deduct the worker's share from his wages, and receipts it by a system of special stamps which are affixed to the employer's card. The age when one may be pensioTied is 05. Pensions, however, may be drawn at 55 with a proportionate deduction in both the amount of pension and the state subsidy. The amount of a I'ension is baseil upon the number of contributions made and the age of the insured. In order to obtain a regular pension, 30 payments are required. This is reduced to 28 for all men who have performed at least two years of military service; and in the case of women, one annual payment for the birtli of each child is deducted from the "required thirty years. The i-^tate adds to each regular pension 100 francs (■^irKSO). This is still more increased by one-tenth to those person?', 249 of either sex, who shall have brought up at least three children to the age of 16. For those who have made less than thirty payments but more than fifteen, the state subsidy is computed on a basis of 3.33 francs {|0.64) for each year of contribution. No state siibsidy is given in cases of less than 15 annual payments. To meet the immediate problem of relief for the aged, the law of 1910 also provided that all persons who were already 35 years of age, at the time the law was passed, must insure. To those between the ages of 35 and 40, the regular state subsidy was given. If 4(i years old, in 1910, the sul)sidy was raised 2 francs and thereafter it was raised two francs for every additional year at which insurance began. Those over 65 years of age at the time the law went into effect, were continued to be given pensions in accordance with pre- vious laws. The number of persons insured under this act in 1913 was 7,854,132. The income for that year was 45,525,540 francs (-If 8.786,429). Tlie total number of persons pensioned in 1912 was 640,532. In addition to the compulsory insurance system, the Frencli law .also provides a system of voluntary insurance which is extended to private persons with small incomes, small employers of labor, peasant proprietors, independent workingmen, and wage earners with incomes of more than 3.000 francs {!t?579), but less than 5,000 francs (|965). The act of December 25, 1915, raised the maximum life annuity from 1,200 to 2,-! 00 francs (!5;231.60— 1f463.20). An Autonomous Pension Fund for miners was created l)y the act (if February 25, 1914, which repealed the previous legislation on this matter. For the purpose of forming a basic capital for these pen- sions, the act provided that the mine ov.ners pay every month into the fund 4 per cent, of the wages of the workers. The regular contribu- tion is borne one-half by the employers and one-half by the workers. The right to a pension begins at 55 years of age. Miners who can prove that they have worked for wages for at least 30 years or at least 7,920 days, (absence on account of sickness is not deducted), in French mines, have the right, in addition, to a state allowance of 100 francs and a bonus from a syiecial fund. In case of permanent in- capacity a miner is entitled to a pension regardless of age. The Act of June 5, 1915, Introduced the use of "social insurance books" (livret d' assurances sociales) for persons who at the sam.' time as they insure themselves lor a pension in the National Old Age Pension Fund, wish to arrange lor their dependents to receive a sum down upon their death. GERMAXY. Old a<'e insurance was first established in Germany in 1889. Since 1911 the system of old age insurance constitutes a component part 250 of the German system of woikingmen's insurance, which includes besides the payment of old age pensions, sickness, accident, invalidity and survivors benefits. The German law provides that all persons whose annual income does not exceed 2,000 marks (|476), must insure. The obligation to insure begins with the 17th year. Public employes, otherwise provided foi, are exempt from insurance. Prior to 1916, the age of eligibility for an old age pension was set at 70 years. An Imperial law of June 12, 1916, reduced this age from 70 to 65 years. This law was made retroactive taking effect as from the First of January, 1916. In addition to the old age pension, the German system also provides for an invalidity pension gianted in case of permanent disability before the pensionable age. The latter is given to all persons unable to earn one-third of the normal wages ir the same occupation and locality. As would be presumed, many more persons are receiving invalidity rather than old-age pensions. The former has steadily increased while the latter has steadily de- clined. In 1914, there were 91)8,339 invalidity pensions paid, as com- pared with 87,261 old age pensions. The comparative growth and decline of the two forms of pensions may be seen from-the following: In 1891 there were 31 invalidity pensions ; this increased to 405^35 in 1900 ; in 1908 it rose to 86S,086, and in 1914 it numbered 998,339. The aggregate expenditures for the old age and invalidity pensions stood as one to two in 1894 ; it reversed to two to one in 1900, 8 to one in 1908, and 11 to one in 1912. The reduction of the pensionable age from 70 to 65, doubtless, reduced this proportion considerably. The consequences of this reduction for the first complete year, during which it was enforced, may be seen from the following figures: It is stated (Deutcher Reich sanzeiger, 6th, Feb. 1918), that the number of new pensions granted by the insurance offices of the various states increased from 11,276 in 1915, to 92,120 in 1916. Those granted by other offices of a special nature rose ten-fold in the same interval.* The expense of insurance in Germany is borne jointly by the state, the employers and the employes. The state, besides bearing the expenses of administratiou and of the payment of pensions — thru the postoffices — conti'ibutes, in addition, a fixed sum each year to- ward every pension. The amount of the weekly premium is paid by the employer and employes in equal parts. The employer is also made responsible for the insurance of all of his employes and for the payment of their premiums. He is permitted to deduct the lat- tcr's contributions from their wages, and receipts it by affixing special stamps to the worker's receipt cards. The contributions are not uniform but vary in accordance with the annual earnings of the workers. For this purpose, the insured persons are divided into five classes ranging from those earning •The Labonr Gazette, Marcli 1918, p. 98, London. 251 less than 350 marks ($83.87) per year, in the first class, to those earning more than 1,150 marks (|273.93) per year in the fifth class. Until 1917, the weekly contribution for these classes ranged from 1(> pfennige (|0.038) to 48 pfennige (|0.114) per week. On Janu- ary 1st, 1917, however, owing to the extra sums expended as a result of the reduction in the age limit, the contributions were increased to 18 pfennige per week for the first class, and 50 pfennige per week tor the highest group. In order to be eligible for an old age pension, one must have made at least 1,200 weekly contributions. To meet the immediate problem of old age relief the required number of contributions was reduced by 40 weeks for each year of age over 40 at the time the law became operative. Persons over 70 years of age at the time of the passage of the law were thus pensioned outright. The amount of the old age pension ranges from 110 marks (|26.20) per year, to 230 marks (3j54.7U) per year, according to the wage class the insured person is in. The government's contribution consists o1: a uniform state subsidy of 50 marks (|11.91) to all pen- sioners. The lowest annuity granted is 60 marks (|14.29) for the first wage class. This is increased by steps of 30 marks ($7.15) for each succeeding class until it reaches 230 marks (|54.79). The German system, in addition to paying pensions, makes also an efCort to prevent invalidity whenever possible. The invalidity insti- tute has the power to provide a course of medical treatment, such as would reduce or prevent the loss of earning power. For this pur- pose a chain of 65 or more sanitoria are maintained, which treat annually about 70,000 persons. It is claimed that 80 per cent, of the cases treated are discharged as cured. The institutes are also authorized to invest part of their reserve in such manner as will promote the social welfare of the working classes. In order to im- prove the health and well being of the insured persons, the insti- tutes have erected model dwellings for workmen, as well as conva- lescent homes, people's baths, labor colonies, etc. The insurance in- stitutes claim that this has resulted in a considerable reduction in the death rate and sickness rate in Germany. The invalidity and old age insurance system is administered by approximately 50 territorial and special "institutes" under the gen- eral supervision of the central insurance office. The administration is in the hands of highly trained experts. To each insurance oflSce are attached several boards of arbitration which adjudicate cases in dispute. These consist of a president and vice president and two rep- resentatives of both employers and employes. In~1914, the total cost of administration of the insurance system was 24,156,658 marks ($5,754,116). 252 The avciage amount of old age pensions in 1!J14 was IGT.tli) niaiksi ($40.02) or about |3.l]3 per month. Because of the steady rise iii wages which decreased the number of persons in the lower wage groups, the average pension i)aid has risen steadily. In 1891 it amounted to 124 marks (.f20 54). In 1900 it was .|84.67, and in 1908 it was !f!39.5S. The average amount of this invalidity pension, in- creased from |41.(>0 in 1909 to $46.51 in 1913. In 1913 the number of x>ersons insured under the invalidity and old age insurance was 10,323,800. This represented 24.4 per cent, of the total population. From 1891 to 1913 the distribution of the contributions towards the invalidity and old age pensions was as follows: The employers contributed •?418,026,865, representing 40.7 per cent, of tlie total con- tiibutions. The insured persons contributed a similar sum. The ag- gregate state subsidy during this period amounted to |191, 981,177, which represented 18.0 per cent, of the total contributions. The total contributions for the 22 years amounted to |1,028,034,907. On January 1st, 1913, the act creating the salaried employes' in- surance system came into operation. This was primarily for the payment of old age and survivors pensions. A waiting period of ten and five years respectively, for the payment of such benefits, is pro- vided, but this period maj^ be shortened by the payment of extra piemiums. Under this insurance institute, pensions are paid if the earning capacity of the insured has been lessened by 50 per cent, instead of two-thirds, as required under the general insurance system. The contributions here are made by the employers and employes with no state subsidy. During the year 191G, the total amount of contri- butions j>aid to the institute by the employers and employes, was in round figures 113,000,000 marks (,f 26,894,000 ) . This insurance sys- tem is very unpopular, as during the same year the obligation to insure was contested by many peoxjle. While only few pensions were given during the year 1916, the insurance institute for salaried em- ployes granted such other benefits as provided by law. First of these was the granting of juedical and curative treatments. The institute is objected to by many, as it is claimed, that its creation was mainly for political reasons, in order to separate the salaried employes from wage-workers, r,s a special class. GREECE. A compulsory invalidity and old age insurance system for Greek sailors was enacted in 1907. The cost is divided equally between the insured, the employers and the state.* ♦Report of Special Inquiry' Relative to Aged and Dependent Persons in Masaachusetts, 191fi, p. 102. 253 ICELAND. A coiripulsory system of old age and invalidity insurance was established in Iceland as early as 1890. The act provides that "All servants between the ages of 20 and 60, all day laborers, and jseisoiis working with their parents nirist annually contribute to this fund 10.27 for men, and .fO.O.S for women. The male head of each house- hold must pay this contribution for every person who resided with him during the year, but he may deduct it from the wages of his em- ployes. For non-payment of these contributions, property may be at- tached. The only persons exempt from paying contributions are those without means who are responsible for maintaining one or more dependents who are unable to provide for themselves ; those unable to earn wages on account of sickness or other causes; and those who have provided for their old age by purchase of an annuity of at least 150 kroner (|40.20). "Pensions are granted to persons over 60 years of age who have received no poor relief during a prior period of ten years. The minimum pension is 20 kroner (.15.36) and the maximum pension granted may not exceed 200 kroner ($53.60). "Funds are administered in cities' by the magistrates, in rural communities by the parish council, and these oflBcials may set aside as their salaiies, 4 per cent, ot all contributions levied. They must also elect two persons who audit the annual balance sheet of the respective funds."* LUXEMBUfW. Luxemburg first established a compulsory system of old age and invalidity insurance in 1011-12. The act provided that all persons earning not less than 8,000 marks (.f;715) annually must insure. Per- sons earning not more than 3,600 marks (.f858) may, in addition, take out voluntary insurance. The law also provides for institutional care to prevent incapacity and provides for the care of widows and dependents in case of death. The pensionable age was first set at 68 but an amendment, passed in June 1914, reduced it to 65 and provided that, "Any insured Luxemburg subject who has completed his sixty-fifth year of age, and who jnoves that he has worked in the Duchy for at least 2,700 days in an occuj.ation subject fo compnlsoTV insurance, shall be en- titled to an old age pension." Also "Luxemburg subjects wlio on 1st Januarv, 1912, are sixty-five years of age or more, and who prove that during the five yeai-s which immediately preceded this date they have regularly exercised in (lie Grand Duchy an occupation subject to compulsory insurance, shall be entitled to claiTn one-third of the — Mleport of Special Inquiry Relative to Aged and Dependent PerBons in Maanaohuaette. 19t6. 254 original pension." And further, "Insured Luxemburg subjects who have completed the sixty-fifth year of their age within ten years im- mediately following 1st Januaiy 1912 . . . shall be entitled to old age pensions, if they give proof that during the five years immediately preceding 1st January, 1912, they have regularly exercised in the Grand Duchy an occupation subject to compulsory insurance, and that since that date up to the completion of their sixty-fifth year they have worked on an average 270 days a year."* As in Germany, the state, the employers, and the employes bear the expenses of the pension. The state subsidy amounts to a fixed sum of 48 marks (|11.43) for every insured man and 38.40 marks ($9.15) for every insured woman. For this purpose, the Act of 1914 sets aside a credit of 125,000 francs to be paid annually for 50 years, to the deposit of the Invalidity and Old Age Insurance Institution. The total contribution of the employers and employes is at the rate of 2.1 per cent, of the wages earned. This is divided equally between the employer and the employe. The former was made responsible fo]' the payment of the premiums, by the Act of 1911, and was authorized to deduct the employe's share from the wages. The Act of 1914 modi- fied this, so that by mutual agreement, the retention of deductions corresponding to the contributions due, may be postponed until the final settlement, (this to be not later than December 31, of each year) ; and the share of contributions of agricultural workers, work- .ing partly on their own account and partly for others, shall be col- lected direct from such persons. The amendment also provides that the Managing Committee of the Insurance Institution may require a security to be deposited by contractors domiciled in a foreign coun- try, who temporarily employ in the Grand Duchy persons liable to insurance. The contributions to this fuud in 1912 were as follows: from indus- trial and miscellaneous occupations, 1,339,000 francs, and from agri- cultural, 53,777 francs. The benefits paid out during the fiscal year, 1912-13, were 29,464 francs to the industrial and miscellaneous occu- pations and 16,045 francs to agricultural workers. NETHERLANDS. By an act passed on the 5th d' June, 1913, a system of old age and invalidity insurance was established in the Netherlands. It provides for compulsory insurance of aJl workmen in the Netherlands over 13 years of age, who are not in active military service, and who'se annual income does not exceed 1,200 florins ($482). This Act also applies to seamen and workmen employed in a foreign country by Netherland establishments. The law exempts from compulsory insurance those •BtUletin of International Labour Office, Vol. 9, No. 7, p. 310, 1914, 255 vno work for wages by way oJ: exception and for short periods ; tiiose already entitled to a pension from the state or private establish- ments; and those who pay a property or an income tax exceeding ^,000 florins. The government, it is also provided, is to pay an annual subsidy to the insurance fund of 10,000,000 florins ($4,020,- 000), for a period of 75 years. Prior to 1914, the government also paid to the districts a subsidy of 50 florins (IpSO.lO) per pension. The insurance entitles the v.'orkmen to an annuity in the event of disablement or after the completion of his 70th year of age. Incapacity is defined as the inability to earn one-third of the normal wage. In case of death the surviving children receive annuities until the age of 13. In order to be eligible for an invalidity annuity, every insured person must have paid 150 premiums, x^fter the age of 70, a person is entitled to an old age annuity. Persons convicted of crime, recipients of public chai-ity and those of immoral character are disqualified from a pension. It is also required that one must have been a resident of the country for at least 20 years and a citizen for at least 5 years before he is entitled to a pension. Persons subject to compulsory insurance are divided into five classes in accordance with the wages earned. These range from the first class — those earning less than 240 florins (|96.48), to those earning 900 (f 361. 80) or more florins. The weekly premiums paid vary from 20 cts. (|0.08) for the first class to 48 cts. (|0.193) per week in the fifth class. The premium is paid by the employer who is entitled to deduct from the weekly wages a sum ranging from 4 cts. for the first wage class, to 24 cts., in the fifth wage group in the case of adults, and half the tunount of the premium for each wage class in the case of minors. The employers bear a greater share in the lower wage groups and bear an equal amount in the case of the upper wage classes. Military conscripts, while in service, are as- signed to the second wage class and their premiums are paid by the State. The amount of the annuity is computed as follows: The pension amounts to 325 times the total of the premiums paid up, which is divided by the number of the weeks during which the person has been insured. To this is added 14 per. cent, of the total amount of the premium paid up, whicli must not be less than one-fifth of the original pensions. "In accordance with this formula an insured person who has paid 48 weekly contributions each year, from the age of 20 to the age of 70, and whose wages were |5 a week up to the age of 25 $6 a week up to the age of f30, $7 a week thereafter would be entitled to a pension of about .f2.30 a week at the age of 70. In the c\'ent of his becoming incapaciated at the age of 30, he would from that time onward receive about fl.25 a week. Should such inca- 25G pacity not occur until his 40tli year, he would receive about |1.50 t week, and if it did not occur until his 50th year, he would receive about *1.8(t a week."* The act also iivoxides that in cases of persons subject to compulsory insurance, if permanent disability may be averted by medical treat ment, the "Labor Council" may cause such insured persons to be subjected to such treatment or placed in a nursing institution at tlw expense of the State Insurance Bank. Besides tlie compulsory in.>nrance system, Netherland also pro- vides a system of voluntary, insurance for those exempted under the fiist system against invalidity and old age. ^'OIi^^^AY. In February 1907, a ('omniission was appointed in Norway to study the problem of invalidity and iild age insurance. The Commission tinished its work in 1912, and submitted a draft of a bill for a national invalidity and old age insurance system. This bill proposed that all male and female persons residing in Norway or belonging to the crews of Norwegian vessels, Norwegian citizens in Norwegian employment in foreign countries and Norwegian citizens employed by foreign countries in Norw:iy, shall be compelled to insure them- selves against invalidity and idd age. The insurance to begin from the age of IG years. The proposed sclieme provides for the payment of an invalidity pen- sion — invalidity existing when the earning power is reduced to less tlian one-third the normal — after four years of conti-ibutions and aftei' a waiting period of 2(! weeks from the time of the invalidity. If a person earns 1,.'">00 ciowns (••^402) a year, he is not to be considered disabled under any condition. The old age pension matures at 70 years. An invalidity pension ceases as soon as an old age pension is drawn. Medical and institutional care is also ])rovided in the pro- posed bill. The bill jroposed that the cost of the administration of the insur- ance should be borne by the state and the commune; the cost of the insurance proper, however, lobe met by the contributions of the in- sured persons. In addition, it is suggested that the commune pay 2.") ci-o\vns (.'{Sfi.70) annually for every current invalidity pension. During the time of sickness or accident, the commune also to pay the cfiutribntions in case the insured person is unable to ])ay them him- self. The contributions are to be ])aid for 50 years, but persons over 70 years of age are exempt from jiayments. Contributions are to be 2 i;eT- cent, of the earnings but nol less than two crowns (|0.54) a year. *Report of a Special Inquiry Relative to Aged and Dependent PersonB in Massachnsetts , 1916, p. 102, 257 A fraction of one per cent, on the property of an insured person is added to the contribution. A deduction of 5 per cent, from the contribution is made for each dependent of the insured person. Ko child over 14, however, is to be considered dependent. The bill proposes a rather unique system of computing the amounts of the pensions. The framers of the bill assumed that, "On the coming into force of the insurance, the sums at present expended for public and private poor relief, which are raised by taxation, will de- ci-ease considerably. This should result in a saving to persons who for some reasons or other are exempt from insurance, and also to corporations, foundations, and societies, the income of which is sub- ject to special taxation. If such individuals and incorporated bodies do not give some equivalent lor this saving, they would actually obtain an advantage at the expense of the insured persons because expenditures which would otherwise be borne by all persons subject to taxation would in such a case be borne exclusively by the insured persons. Since the national insurance system does not intend to bring about such a shifting of the social burden, the bill provides that all persons who have ceased to pay regular contributions, all persons who are not subject to insurance, and all taxable corpora- tions, foundations, and societies, the income of which has not been taxed in the assessment on their stockholders, partners, or members, must pay to the national insurance institution an equivalent for their saving in taxes, the amount of which shall be determined on the basis of statistical computations.'' It is, therefore, provided that the total fund, in addition to the regular contributions, shall consist also of the insured person's savings in poor relief and private support, as well as the current invalidity subsidy of the commune. In order to make the pension uniform, a basic pension of somewhat more than 5S crowns (|14.20) per year is, therefore, to be paid to the insured person regardless of the amounts of the premiums paid. The basic pension is increased in accordance with the number of contributions made, the economic conditions, and the number of the dependents of the insured person. An additional grant of 15 crowns (14.02) is given for every child under 14. If both husband and wife are receiv- ing a pension, 20 crowns ($5.36) for every child under the age of 14, is granted. Contributions are to be collected along with the Communial taxes. The employers are to pay the contributions of their employes, as well as those of their employes' families. The employer may deduct the cost from his employe's wages. If the pension granted by the usua^ method of computation is too small, the commune may grant an in- crease.* — I^ZT-^-.,! •<-heine of National Social Inanrance for Norway, bj Nlcolay L. Biigge, Secretary In the :Nto^l?l«n ^Istry of Finance. (MannBCript copy In the Library of the U. S. Bnrean of Labor Statlstloi.) 25S ROUMANIA. An act passed in 1912, established a compulsory old age and invalidity insurance system in Roumania. This act was modeled alter the German and French systems. It defines invalidity in the same manner as is defined by the Gerlman act. A person becomes eligible to an old age pension at the age of 65. Like the French system the contributions are made uniform for all classes. For the first ten years from the date Ihe act becomes effective, the amounts of the weekly contributions are set at 45 bani (|0.87). This is divided equally among the employer, employe and the State. The employer is made responsible for the entire payment of his own and his worker's contributions, but may deduct the latter's share from the wages. In order to be eligible for a pension, contributions for at least 12 weeks must liave been made. The regular old age pension amounts to 150 lei (.|28.95). The invalidity pension is paid to the insured person after Ifi weeks of consecutive illness. The latter is increased by 10 bani (|0.02) for every weekly contribution in excess of 2,000. RUSSIA. There was no general provision for invalidity and old age insurance in Russia. Those provided will, such protection included the various government employes who, howt\er, covered a considerable field. An old age XJension fund granting pensions after 25 years of service to employes of State mines was established as early as 1797. In 1804 this was extended to .all emidoyes of State factories. Before the revolution, there were several separate State funds in existence which required employes of the particular industries to participate. The Ttate Miner.s Fund paid pensions after 35 years of service, and required all over 18 years of age, engaged for at least one year in the work, to become members of the fund. The Railroad Employes Pension Fund required all employes of State and private railroads to insure themselves. A pension was paid after 15 years of service. A similar fund existed for the employes of the State Liquor Monopoly. A separate savings fund for old age also existed for the workers of factories and harbor works operated by the min- istry of marine. Another fund against old age was operated for the members of the volunteer ileet. A compulsory contributory pen- sion fund was also established for all the employes of the Zemstvos. Practically all these funds ■were controlled by the members of the particular funds. In 1914 the government's contribution to these funds amounted to 117,994 roubles (|G0,694). 259 SWEDEN. In 1913, Sweden enacted a compulsory system of old age insurance which is more comprehensive than any of those in existence. Instead of limiting it to certain wage groups as is the case in most other countries, it is made universal in so far as it provides that every Swedish man or woman above the age of 16 years is subject to com- pulsory insurance, until the completion of his or her 66th year. The law exempts only persons who are permanently incapacitated for work; state employes already provided with pensions; elementary school teachers ; members, of the artny and navy, ministers of religion and the wives of persons thus exempted. The contribution is paid from the 16th year by every man and woman in the fortn of an annual tax or premium amounting to three crowns (IgO.SO). This contribution is increased by two crowns for incomes over 500 to 800 crowns : the surtax is increased by 5 crowns for incomes from 800 to 1200 crowns and by 10 crowns for incomes of 1,200 crowns and over. The law provides that the annual contri- bution payable by each persoji shall be collected by the commune in which the person is registered. The commune is also bound to ac- count, and pay into the fund an amount corresponding to the con- tributions that may not have been paid. The wife's contribution is to be paid by her husband. And the father is responsible for sucli pension contributions for children under 18 years who are registered as residents in his house. Should the employer pay a contribution on behalf of his employes, he may retain the sum disbursed out of the wages paid, within six months of such payment. The insurance benefit consists in an invalidity pension in the case of permanent incapacity for work, regardless of age, and in an old age pension on attaining 67 years of age, even if incapacity has not yet set in. The amount of the pension for men is 30 per cent, of the total pension contributions paid, and for women, 24 per cent. It is also provided that pensioners permanently incapacitated for work, whose annual income does uot exceed 50 crowns (|13.40), receive ill addition to their pension out of the Exchequer 150 crowns (|40.20) per annum per man and 140 crowns (|37.52) per woman. This sub- sidy decreases to one-half if the pensioner's income is over 50 crowns ($13.40), and ceases altogether when the income amounts to 300 crowns ($80.40) per man or 2S0 crowns ($75.04) per woman. In the event of fully paid up pension contributions, the pension addition is increased by .08 per cent, for every crown paid. The pension addi- tions are borne to the extent of three-quarters of the amount by the State while the remainder is divided between the Landsting and the communes. 260 Pensions are not given to those in receipt of poor relief or 1o habitual drunkards and idlers. If institutional care is given, the institution may claim the right to the pension in order to reimburse itself to the amount charged for the care of the pensioner. Imprison- ment or conviction for more than one month stops the receipt of a pension during that time. It may be claimed, however, by the de- pendents for their support. The law also provides that in order to become entitled to a higher ptmsion than that provided for in the act, every Swedish subject who has reached the age~of 15, may, by paying contributions not to exceed 30 crowns (!p8.04) per annum become entitled to a higher pension. To all voluntary contributions paid within each year, an amount equal to one-eighth of the contributions, is added by the government. The amount of the pension being one and one-half per cent, of the voluntary contribution in the case of a man, and one-sixth less than tliat, in the case of a woman. The administration of the insurance is under a pension committee, the chairman of which is appointed by the king's representative — one for every pension district in the country — while the six members and their sribstitutes are elected bj the communes. To meet the immediate problem of old-age relief, a provision stipu- lates that, for persons who during the years 1914 up to and including 1918, have acquired the right of an addition to their pension or sup- port, or to an increase thereof, Ihis benefit is to be calculated as from 50 to 90 per cent, of the sums otherwise provided in the act; and for persons who when the act comes into force, are between the ages of 25 and 45 years, 27.5 to 20 per cent, for men or 22 to 16 per cent, for women, of the contributions paid. The increased cost is borne by the government. The number of pensions granted under this law in 1914 was 33,138. The amount paid was 1,875,457 crowns (.'if502,022), which was an average pension of 56.6 crowns (|15.17). It is also shown that pen- sions were granted to 10,565 men with a total of 623,120 crowns ($166,996) or 58.98 crowns (?15.81) per capita; 22,573 pensions were granted to women amounting to 1,252,336 crowns (.|335,625) or 55.48 crowns, (.'ifl4.87'l per capita. In 1914, the total number of persons insured under this act was 3,225,700. The contributions of the pen- sioners amounted to a total of 14,571,000 crowns (.|3,905,028). The number of voluntary cases insured in 1914 was 628. .SWITZERLAND. The National Assembly of the Swiss Canton of Glarus introduced a system of State old age and invalidity insurance in the Canton by the Act of the 17th of May, 1916, Insurance is compulsory for all 261 persons between 17 and 50 years of age who ha\e their legal demicile in the Canton. Persons who remove to another Canton may remain in insurance by paying au increased annual contribution; persons Avho settle abroad leave the insurance, but if they return to Switzer- land within four years they may re-enter the insurance by paying an increased contribution for the period of their absence. The funds are raised: (1) by an annual contribution from the Canton of 85,000 frcs., together with the interest from the Old Age and Invalidity Insurance Fund and other associations; (2) by an annual contribution from the Communes of 1 frc. per head of the population; (3) by an annual contribution of 6 frcs. from each in- sured person. The obligation to pay contributions ceases on reaching the age of 65. The annual contributions may be commuted by making a single payment ranging from 125 frcs. at the age of 17 to 470 frcs. at the age of 49. Disablement pensions are payable to persons who, having been insured for five years, become incapable of work on ac- count of illness or other infirmities for at least one year, regardless of their age. Old age pensions are payable from the age of 65. The right to draw an old age pension is conditional upon the insured person having paid altogether at least 400 frcs. (i. e., 33 years' con- tributions plus interest), otherwise the pension is reduced accord- ingly- The amount of the annual invalidity pension begins at 150 frcs. and increases annually by IG frcs., up to a maximum of 300 frcs. for men and 250 frcs. for women. The amount of the annual old age pension is: Men. Women. At the beginning of the 66th year, 180 frcs. 140 frcs. At the beginning of the 67th year, 210 frcs. 160 frcs. At the beginning of the 68th year, 240 frcs. 180 frcs. At the beginning of the 69th year, 270 frcs. 210 frcs. At the beginning of the 70th year & upward, 300 frcs. 250 frcs. A claim to a pension lapses if the insured person takes up his resi- dence abroad after beginning to draw his pension ; in this case the person concerned may demand the reimbursement, without interest, of the contributions he has paid. The insurance is effected thru the State Old Age and Invalidity Insurance Institution. Special provi- sions regulate voluntary insurance, to which persons of from one to 17 years of age may be admitted.* There are also in Switzerland a large number of special funds with definitely restricted membership, such as the employes of the federal railways and of the post-ofiBce department. Membership here is made compulsory. The contributions are borne jointly by the in- sured persons and the federal government. - ,Bni letiD of International Labom Office, Vol. XT, Nob. 8, 7; 1018. 262 III. NON-COlSfTRIBUTORY OE STRAIGHT OLD AGE PENSION SCHEMES. ALASKA. The Legislature of the Territory of Alaska iu 1915 passed an act providing that, "Any pioneer of Alaska, regardless of sex, who has attained the age of sixty -five (G5) years and shall have resided in Alaska for ten consecutive yeais or more since the year 1905, and is entitled to the benefits of the Pioneers' Home at Sitka, Alaska, or of the Home for Indigent Pioneers at Fairbanks or elsewhere in Alaska (should the same be established) may in lieu of an applica- tion to be received and cared for at such home, make an application to the Board of Trustees of said Alaska Pioneers' Home, for an allow- ance to be paid out of the revenue of said Home; and thereupon said Board shall investigate the case of such applicant, and if they find that his or her case is worthy, and that he or she is in actual need of such allowance, the said trustees shall enroll him or her as a beneficiary of said Home . . . and in conformity therewith, an allow- ance shall be paid for his or her use as provided in Section three and four of this Act . . . Provided, that if any person pensioned under the pi'ovisions of this act, shall be admitted, to the Alaska Pioneers' Home or other Territorial Institutions, any pension granted here- i;nder shall be suspended during the time such person shall be an inmate of any such Territorial Institution, nor shall any pension be paid to any person who has been absent from the Territory of Alaska for a period not to exceed one year." The original bill provided for allowances not to exceed |12.50 per month in any case. This was amended in the 1917 session so that as the law stands now ; "Each allowance granted shall be of such amount not exceeding twelve dollars and fifty cents (|12.50) per month, as said Board of Trustees in their discretion shall allow and be specified in the certificate having due regard to the necessities of the applicant ; provided that in the case of extreme emergency the Board may, in its discretion, make a maximum allowance to pioneer women, who shall be sixty years of age and otherwise qualified to re- ceive such allowance according to the provisions of this Act, in the Slim of twenty-five {|25.00) dollars, per month... and after being granted shall not be diminished in amount, but may be from time to time increased by said Board to an amount not exceeding said maximum. Provided, however, in case the Board of Trustees shall be satisfied that the beneficiary is in position to support himself or herself, or can be supported by his or her relatives, the Board may revoke the grant of an allowance, cancel the beneficiary's certificate, and strike his or her name from the roll of the beneficiaries." 2m The Legislature in 1917 also provided that, "the sum of thirty thou- sand dollars or so much thereof as may be necessary, is hereby appro- priated for the purposes of this act;. . .provided that the Board of Trustees shall not grant allowances calling for an expenditure in excess of fifteen thousand dollars in any one year ; and further pro- vided, that any excess fund not issued the first year shall be avail- able for use the following year." ARIZONA. At least one State in the Union, Arizona, enacted in 1915 by initia- tive petition and popular vote legislation granting old age pensions. These are given to all needy citizens of the United States who have been residents of the State of Arizona for at least five years prior to application therefore and who have reached at least 60 years of age. The pension amounts to |15.00 per month and is given so long as the pensioner continues to liv« in the State. This act had been held unconstitutional by the Superior Court of Arizona, in November, 1915, and an appeal was then taken to the Supreme Court of the State. AUSTRALIA. The Australian old age invalidity act was passed on June IQ, 1908, and became effective July 1st, 1909. This act supersedes the previous old age pension systems established by the separate States of New South Wales, Queensland and Victoria. The new law which was amended in some essential respects in December 1912, applies to the entire Commonwealth, including the States of New South Wales, Victoria, South Australia, West Australia, Queensland and Tas- mania. The law provides for the granting of pensions to all males over 65 years of age and females above the age of 60. Pensions are given to persons who have been residents of Australia for at least 2.5 years. They must also be of good character and not to have been imprisoned for four months within 5 years in the last 25 years. Pensions are refused to claimants who are wife-deserters, drunkards, etc., and are not given to those who own property above £310 (.f 1,509). The law also excludes from the pension right, Asiatics or aboriginal natives of Australia, Africa, New Zealand or the Islands of the Pacific. In addition to the old age pension the Australian act also provides for an invalidity pension payable to any person above 16 years of age, who is permanently incapacitated for work, provided that the person shall have resided in Australia for at least 5 years. The claimant for an invalidity pension must also have no claim upon an employer 264 for accident compensation and not to have property or income in ex- cess of the pension amount. The act of 1912 also specifies that gifts or allowances given to a pensioner by children, grand-chUdren and relatives, etc., are not included in the income. The above act also made naturalized citizens entitled to pensions from the time of their naturalization, instead of after three years of waiting, as was re- quired previously. The law also provided that permanently incapa- citated persons should include the permanently blind. By the Acts of Nov. 1912 and Dec. 1914, the government of Australia set aside a credit of three million, and five and one-half million pounds re- spectively, for the purpose of the invalidity and old age pension funds. No unifortn or fixed pension amount is provided. The law specifies that the amount of pension fchall be "at such rate as, having regard to all the circumstances of the case, the commission who determines the pension claim deems reasonable and sufficient." The pension must not exceed, however, £26 (|127) per year. And no pension may be paid of such amount as to bring the pensioner's total income above £52 ($250) per year. Where the pensioner has property, the pension is reduced to the extent of one pound ($4.87) for every ten pounds (148.70) of the net property exceeding 50 pounds (|243) ex- clusive of the home, or above £100 (|487) including the home. When both husband and wife are pensioners, deduction in case of each of them shall be one pound for every 10 pounds of net property above 25 pounds. The number of pensioners in Australia has been increasing steadily, the following figures show the steady rise: Years. Number ol Old Age and Invalidity FenBioneis. Amounts Paid In Pensions. 1909, — . 1910, — 1911, ... 1912, ... 1913,'.-. 19U, .. 1915, ... 1916, ... 1917, .. 80,482 65,492 82,953 89,834 96,682 104,645 111,309 91,783* 93,672* £1,497,330 1,868,648 2,148,034 2,239,048 2,577,965 2,704,809 *Not including invalidity pensions. The cost of administering these pensions rose from £37,146 in 1910, to £48,407 in 1915. This amounted to £2, 9s, 7d. per cent, per 100 pounds distributed in 1910, and decreased to £1, 15s, 5d per cent, in 1915. The average fortnightly pension amounted to 19s, Id in 1910 and 19s, 5d in 1915. 265 The following two tables give a detailed account of the pensioners admitted during the fiscal year of 1916-17: TABLE NUMBER 72 Old Age Pensioners Admitted During the Year 1916-1917 ly the Dif- ferent States of Australia. 1 C8 1 i 1 09 1. B « |2 OS 1 a 125 t> >) 'O'O'O o aaa| M n n w . B a o_, BO o o o'O a n M M &t » CI a q ^TS o o o o « o o o9 g PbSs isos i" m S 3,9 CI m a '5 R « a « [H CJ OO s". *" as. op S_3 a o s ?3 o ^ g o So 6n "■I ,J_ QJ Ml Q) DQ Pi .O dj 3 c3 o 2 ■« S 23 ?9 S o E S nS S a5 U o -a a iS . s »-s •OM -a es asy sf rt " S fe ficit: ^; ■an :g S'o, aga = ,5=3 19 i-3 8 IS " -a o o tl d 03 S ! 1 ^ 03 I bo a :i O 1 aa -a .-S a S 2SSSS Si"sS s "t,«aa (uS O O O a .2«Sg oa c g 1 a ^n s^fc E «g? ;^"s,o«B' ^ m 1-1 rH rt 5 4 n oao 22 'E •"E'E^ "E ooool o ^ rt t»» t»J CQ >» h« trf ^ > h O tn o O f*» O 05+2 qO CO ^i .55 3g395 3 Pi U P> n d Pi aaaaa a 00000 o OlziOOt* O I I aSa.Sa g§sa-B, 2 N OQ CO M S H 3 S'o) fl hi 2.2 a a co'O ^ S|21 Bl I 2 N « S a - fe t< 3 m a E O O 3 S I . 3 g~-a +»'0 o a OS fl S^o "O a^o . a "a a «4,> V ^ 272 I i I' fin O o fi m O 9 M 'S 32m His *-•- M eB OS 23 •" r-( — ' +3 Wf»>-«- g. to is. » 43 3 K **r:!Mffli3osae9--**3os a o an gS"gS ell ?i!Sl>S I '. 1^ I I I O I I I 'g I g i|a i a i|h I asaes iM i^ §1 e e I I I I I I a I :3 ii »3 ^S ? 03 CO tS<*i 03 V -- is ss |a 1 V I I I a^ aj OS ej eB S n inLag nil giiiiifi i|ii i T-(rHfHr-( l-l rH |H IH O *^ *^ •^ 2 5^ OS'S a m I I I I r !»£. -a ' ass's '4 o I a.® ■M'O O c8 «a 5 J VM 3 APPENDICES. 18 '™' (274) APPENDIX A. SOME TYPICAL CASES OF MALADJUSTED AGED DEPEND- ENTS FOUND IN OUE INVESTIGATIONS. (a). Cases Encountered in the House-to-House Studies in Philadel- phia, Pittsburgh and Reading. Mr. M. P. is 58 years old. A year ago he had a paraletic stroke and ever since that day he has not been able to work. Until a week ago, a trade union to which he belonged, had taken care of him and his sickly wife. However, according to the by-laws of the organization, benefits for sickness are only paid for one year. To go to the poor- house and be separated from each other was unthinkable to the still loving couple and so Mrs. P. is taking in washing and supporting the family. W. H., 62 years of age, was a trolley motormau who lost his leg in an accident. The car company bought him an artificial leg and gave him a position as watchman which he had kept till about two years ago, when he was discharged. He then worked in a stocking factory. When the factory started on government work he again lost his job. When visited, his wife had been sick in bed for 9 weeks. His daugh- ter-in-law is keeping the home together as best she can. She gave up her position in order to look after the old folk. In addition, she is also supporting her husband who is confined in a tuberculosis sani- tarium. Mr. H. is 68 years of age. Sixteen years ago he was hurt while at work at a well known Pittsburgh steel plant, which totally incapaci- tated him. His only son lost both of his legs at the same place. Not a cent was given to either the father or son. Now, in order to sup- port his aged father and mother, the son begs on the streets. Mrs. D. E. lives on Hope street, Philadelphia. She is past 60 in years and almost totally blind. She is stiU supporting her aged mother, 85 years of age. Hardly able to distinguish white from black she takes in washing and stands over a steaming tub of suds all day long in order to keep herself and her mother alive. She has three children living somewhere, but rarely hears from them. (275) 276 J. E. past 70 years of age, was found to be taken care of by an old friend, a countryman of his from the other side of the water. On being questioned the Good Samaritan replied, "If he works and makes a few cents he pays me a little something, and if not, all right. I keep him just the same." Eighteen years ago, before the compensation law went into effect, G. W. 72 years old, was injured in a locomotive plant. Being inca- pacitated for work he was dismissed from service without any pro- vision for support. His wife then took up the burden of supporting and for a long time sold shoe laces on the streets to earn enough to keep herself and her husband. She is now past 76 and is blind. Peddling on the streets is now also prohibited by law, and the two old people have nothing ahead of them except the poorhouse. Mrs. M., a widow, had not left her bed for three years. Her hip was fractured thru a fall on an icy pavement. Her age is 83. No person walks this earth whom she can call a relative, and she is de- pending upon the charity of strangers. Another old soul, verging on the brink of the great beyond, had taken Mrs. M. to her one room home and is sharing her ibed and fireside with her. During the day the latter peddles and begs on the streets. Mr. W. G. is 66 years old. He insists that he is "as fit as a fiddle." The employment agents, however, do not think so and for the past several months Mr. G. has been unable to find any kind of work on account of his age. In the prime of his life, W. A. B., 63 years old, had worked in a paper mill. He had for the greater part of his life earned on an average |12.00 a week. He raised a family of three children on this salary. At present, his children are old enough to support them- selves and W. A. B.'s pay envelope has, on account of war wages, f.ittened up to $23.00 a week. Mrs. C. B., a widow of 72 years of age and not in good health, man- ages to earn about $3 a week, gathering fern leaves on the mountains for florists. A grandson of 17 works, when he can, to help out. Her daughter with whom she resides gives her food and medicine. For weeks at a stretch in the winter, the old woman is ill and unable to get about, but nevertheless, hates the idea of being dependent and en- deavors to take in washing and do light work to earn what money she can to lighten her daughter's load. 0. R., age 71, was hurt at his work while cleaning the streets of Eeading, Pa. His sister, who is a widow, keeps the house for him. She also goes out washing and with the money she earns, along with the $5 a week which O. R. gets from the Workmen's Compensatiou Insurance, they just manage to have enough to eat. 277 An old woman, born in Austria, has two sons in the army. She does not speak English. She did not know that her sons could help her in any way. Being considered an enemy alien she was afraid to ask for any help. These sons were her only support before. When visited, she was sick and supported by a son-in-law. Mrs. E. is 65. Her husband is too feeble to work. Mrs. R. works as a house maid to support herself. Four of her children are mar- ried and have large families of their own to support. One son is paralyzed. As a result, the father is living away from his wife, with a single daughter, who works in a factory. Mrs. G. 60 years old is divorced from her husband. She is living alone and has $2 a week income from rented property. She says she has not bought any clothing for the past eight years, as she makes use of her dead mother's clothes. She was sick all last year, but could not afford a doctor or even medicine. Out of the |2 per week she has to support herself and pay the taxes. Mr. R. is 61 years old. He is a widower. He has one married child. Since her husband has gone to war, Mr. R. took over the support of his daughter and her two children. When visited he was unable to find suitable work on account of his age. L. C, a widow of 65, was left without means of support when her two sons were drafted. They are now in Prance and she has not received an allotment from them. She has two married daughters but as they have families of their own they cannot help her. Mrs. K., a widow of 75, is forced to support a consumptive child who cannot work. She has another son in an asylum. Despite her age, she still works as a janitre.ss and supports her son. Mrs. R. is 72 years old. She is a widow and is taking care of two grandchildren whose father is at war. When she undertook to do this, her main support was a single girl, who was a telephone oper- ator. This daughter is not working now due to illness. Mrs. R.'s only income is $10 a week from property rent. B. K. is 56 years old. He is crippled, sickly and can do little worJc. His one single daughter is also feeble and cannot work more than a few weeks at a time. In addition, one of his married daughters, who was deserted by her husband, is depending upon him for sup- port. Mr. F. is 55 years old. He has a large family to feed and cloth. Thru his own efforts alone, he cannot make ends meet. In order to help out, he has taken his oldest son out of school to help support the family. The boy is about 15 or 16 years old. 278 Mrs. M. H. is a widow, age 72. She formerly was supported by her son. A year ago, while at work, her son broke his leg thru an acci- dent, and has not been able to work since. Besides his mother, the son has a wife and four children to look after. He receives about $20 per month compensation. The son's wife, during the night, to help out, does cleaning in a public school house. Mr. S. is 52 years old. He has a wife and four children to support. His back was broken at work before the compensation law came into effect. His oldest child is 14 and works out with her mother to help support the family. Mrs. H. is 80 years old. She has worked aU her life and until a week ago took in washing. She is now in bed, unable to get up. One of her daughters, 58 years of age, altho crippled, manages to earn about |4 a week by cleaning. These two women are depending upon another daughter who takes care of the home by day and cleans offices at night. Mr. M. age 74, a widower, worked as blacksmith for a structural iron concern for 25 years. Twelve years ago he broke down on ac- count of the heavy work. Finding him unfit for work, the company discharged him. His only support now is a daughter who works as a clerk in an office. Mr. and Mrs. P., age 72 and 68 respectively, are living together. They have $1,500 in the bank and they tried to live on the interest, but this interest was not sufficient to meet their needs. They arc, therefore, continually drawing from the principal, and very much worried about living longer than the money will last them. Mrs. P. is 74 years old. In order to support a crippled husband, who cannot work, she takes in sewing, making an average of |4 a week. As she is very feeble herself, she cannot work for weeks at a time, during which period the couple are forced to go with very little to eat. Their children refuse to support them. H. G., who is 75 years old, is very sick as a result of paralytic strokes. Earlier in his life he was a blacksmith, but is totally incapa- citated now. Moreover, he needs constant attention. Mrs. G., who is 74, cannot tend to him, as she is feeble herself, and so the son must stay home from work and tend to his father. Mrs. C, age 60, supports her husband, who is disabled, on $5 a week which she earns by taking in washing. She has one son in the army but receives no allotment from him as he is married. This woman still keeps out of debt and manages to get along on her f5 per week. 279 Mrs. M., 60 years of age, a widow, is taking care of two grandchil- dren whose mother is dead and whose father is in military service. When visited, she had not gotten anything as yet from her son-in-law or from the Government. The son-in-law claimed, however, that he had made an allotment. Mrs. C. aged 65 is a widow. Her only source of income is her daughter, who earns $12 a week. Mrs. C."s sister is also dependent on the young daughter. This girl, the mother claims, is sacrificing her whole life to support her mother and aunt. Mr. W. is 75 and his wife is 70. Mr. W. has been blind for 2 years and is unable to work. They have two sons. One has a large family of his own and is not able to support his aged parents and the other, who has been their main support, was drafted. Mrs. W. now goes out washing and cleaning in order to meet the necessary ex- penses. A. L. solves the problem of living in old age by stopping with each of her several married daughters for short periods of time. She makes the rounds at short intervals. W. C. A. age 50, drinks to excess. He does not support his family. His wife, age 43, supports the family by working in a factory. In addition, the husband spends most of the money she earns on drink. When Mr. S. was well and young he was a laborer in Beading, and earned as much as $5.50 a week. This he has been unable to do for the past 15 years, as he has been suffering from rheumatism and dropsy. He is now 66 years of age. He is supported by his feeble wife, who, in addition to taking care of her husband, is also support- ing an idiotic grandchild, 19 years of age, whose both parents are dead. Mrs. S. derives her income partly by taking in washing and partly by begging. Until eight weeks ago, Mrd. E. aged 69, whose husband 70 years of age did not work since 1900, when he was injured while at work in a Pittsburgh steel mill, took in washing for her living. This she is now unable to do as she is too weak. Her one married daughter that helps support the aged couple can no longer do so, as her own hus- band is now paralyzed. Her other daughter is a widow with small children and can hardly earn enough to support herself. Mrs. K. never asked for charity and would not listen to any such suggestions. She was still hoping to get well and take in washing again, and said she will never go to the poorhouse as long as she is still able to do some work. 280 (l). Typical Stories of Almshouse Inmates. Mrs. C, a resident of the Philadelphia Almshouse, is a widow 70 years old. Since her husband's death she has worked in a restaurant as a cook and had managed to save up about $1,000. On this, she expected to live thru her declining days. But the bank in which she had deposited her money failed and with it went Mrs. C.'s money and hopes. Being too old to secure further employment she was forced to seek the poorhouse as her place of shelter. Mrs. H., a widow 80 years of age, is an inmate of the same alms- house. While her husband was living, he made good money and the two bought a little property. When her husband died she borrowed some money to meet certain emergencies and gave a mortgage on hec home. After a time she hired out as a cook in order to pay off hoi* debt. This she could not accomplish and the property was taken away from her. Having no children who could help her, and being very old, she had no other alternative but to enter the poorhouse. K. L., 57 years of age, claims that her son is making $50 a week, but refuses to support her, altho the court has placed an order on him to that effect. She charges that in order to get her out of the way her son had her committed to the poorhouse. B. L. is 61. She is single. When her father died, he left her enough money to live on. She lived on this for some time until a brother swindled her out of it. Having no other means of support she was compelled to go to the poorhouse. Mary F. is 56 years old and single. She has no one in this world except a married sister. This sister kept her fot some time. When Mary got sick and required some attention, her sister's husband re- fused to keep her any longer and she was forced to go to the alms- house. Mrs. B. is a widow 80 years of age. When her husband died he left her $2,000. She lived on this and took care of her son who was left a widower with a number of small children. Finally she got sick and was compelled to go to a hospital. Most of her mony was used up on medicine and doctor bills. After being discharged from the hospital and her money all gone she was sent to the almshouse. As a result of this, her son's family is broken up and the woman is heart- broken. Old Elizabeth C, 74 years of age, had lived for some time after her husband's death with her son who is fairly prosperous. On account of disagreements with her daughter-in-law, E. C. claims, the latter had succeeded in inducing her son to place her in the almshouse. 281 Mrs. E.'s husband, at one time, was the owner of three butcher shops and several mills. When he died, the papers of possession were stolen and others substituted in their place. She has not a cent left now. Her one son, when last heard from, was a traveling sales- man, but this was a long time ago. Mrs. D. is a widow of 73 years of age and almost totally blind. At her husband's death she was left a house and lot. Her son-in-law induced her to sell the house and lot for |600. Mrs. D. then went back to Germany, the country of her birth, and left the $600 with her son-in-law. When she came back to this country her money was refused her. Shortly afterwards, a §300 life endowment policy came due, but she claims to have signed it over to her son-in-law, not knowing what she was doing, because of her defective sight. She was then sent to the almshouse. (c). Cases of A'bandoned Parents Taken from the Records of the^ Municipal Court of Philadelphia. J. H., a widower of 80 years, came to court and said that he had had a son Patrick, who had died in the Philadelphia Hospital, leav- ing him |2,000 to keep him for the rest of his life. Soon after the funeral, Mr. H.'s daughter took him to an attorney's office for the avowed purpose of signing some papers concerning the funeral ex- penses. Not being able to read, he did this and later found that he had signed over all his money. He was then refused admittance to his daughter's home and was told to go back to the place where be had been living before. Up to the time of applying for aid from the court, Mr. H. had been stoping with a poor friend of his who, how- ever, could not keep him much longer. Mrs. B. is 56 years old. When her husband died their nine. chil- dren were placed in homes. She knows little about them now. At present she works in a hospital as a scrub woman earning $25 a month. Outside of this, she has no means of support. Three of her sons, however, are in the service and have promised to help her. Tn addition to this she asks that her other sons, James and Joseph, give her |1 a week each. Joseph is a brakeman on the Pennsylvania R. R. and lives in Delaware. When James was called to court he said that his mother drank to excess. That she was usually drunk when she had money and caused disturbances. He said that she was a disgrace to the family and tho he knew she would get drunk on the money, he would, however, give her a dollar a week. He did not want has address made known to his mother for fear of annoyance. Mrs. M., 62 years, has been living since the death of her husband, with one of her sons. One day, coming home from a visit to a friend. 282 she found a note from her son's wife, stating that if she did not leave her son's home, the wife would leave her husband. Eather than break up the domestic happiness of her boy, she immediately left and went to the home of one of her daughters. Being thrust out of her son's home had completely upset her and now she wanted to live by herself. For this purpose she asked that her son contribute |2 a week and her daughter |1 a week towards her support. M. C. R., age 65, came into court and said that he was living with one of his married daughters. Altho he was receiving a pension of |12 per month from the Pencoyd Iron Works, it was not enough for his support. Consequently he asked that his son John pay him $2 and Jacob and Samuel $1 per week. Letters were written to the sons to come to court. They all agreed to pay their father $1 a week. The papers were signed and the case was temporarily dropped. Some few weeks later Mr. E. came to court and said that Jacob and Samuel paid very regularly and that John did not pay at all. When John was asked why he had not paid, he said that he could not afford it on account of the high cost of living. A Probation Officer investigated the financial conditions of John and found that he was retired from the grocery business, owned property and had a bank account. He also had a jitney business. The Probation Officer then went to the other sons and found they were only making |15 a week, and had wives and large families to support, but were satisfied with the agree- ment. When John was called to the Court for non-payments, he said that all his property was made over in his wife's name. And in regard to his jitney business, he claimed he received very few orders. However, the court insisted that he pay the amount stipulated. A few days later Mr. E. came to the court and said that he was now v/orking and could support himself and that he wanted the orders vacated on his sons. A week had not passed before Mr. E.'s married daughter came to Court and said that her father had never been able to work and was now living with her. She believed that her father had been taken to Court by his sons, and as he could not read had signed the rescinding paper without knowing what he was signing. John absolutely refused to pay his father anything. The other sons agreed to pay what the court stated. But before matters could be arranged, and John made to pay, Mr. R. died, which closed the case automatically. Mr. A. D., who is 73, came to court and said that he could not get steady work on account of his rheumatism. Consequently he found it hard to pay board to his daughter Elizabeth. When he asked his children for help they became impudent and refused. The children, when called to court, said that they were willing to give their father a home and to provide for him, if only he would keep away from 283 Elizabeth, with whom he drank freely. When one son was in the Navy, they said, the father received $15 per month as an allotment, but spent it on drink instead of on his home. Mrs. A. D. is an inmate of the insane ward at the Philadelphia Hospital at the same time. On asking A. D. whether he would stay away from Elizabeth, he re- plied that he would stay away from the whole family and live in a furnished room if his children would only pay his board. A Proba- tion Offlcer went to the home of Elizabeth and found her working in a factory, making |5 a week. Her home was very clean and com- fortable. All that Mr. D. wanted from his children was enough so that he would not be entirely dependent on Elizabeth. On question- ing Elizabeth's employer it was found that she was a steady and honest worker. On interviewing Elizabeth herself, she said that sh^ and her father could not agree with the rest of her family and that she was willing to support her father without the help of them. Shi had a very good appearance and did not look like a drinking woman. The people in the neighborhood of the D. home, however, insisted that both Elizabeth and her father had a very bad reputation. They stated that they were both worthless and that it ^-as a shame that the three respectable members of the family had to suffer for them. Before the court could take action, Mr. D. got drunk and was com- mitted to the alcoholic ward of the Philadelphia Hospital. Mary R., daughter of Mrs. W., said in court that she wanted sup- port for her mother from her brother John, who was a bridge builder. She said that she had supported her mother for 5 years and that John refused to help her. John came to court and said that his mother had lived with him about 5 years ago and that she did not know that he had been asked to help her. He said that he was willing to give his mother |2 a week and give her a home but he knew that she would refuse that. He signed an agreement to pay |2 a week. Some time later Mary R. came to court and said that John had made no pay- ments as yet, and that he was now working at Hog Island. Alice B., with whom John was living, came to court and paid |7 for John. She said that John was making |60 a week at Hog Island. Payments were then very regular for several weeks, when suddenly they stopped. On investigation, it was found that John was in the hospital at Hog Island on account of an accident. He said that as soon as he was well enough to work he would resume his payments. Sam M. husband of Mrs. A.'s daughter Adella, one day told her that he wanted to borrow |200 from a building association. He asked Mrs. A. to sign a paper as security for him, which she did. However, instead of this being for the purpose stated, she signed away her right to her property. Her house is now under the daugh- ter's name. Mrs. A. is 80 years old. When Mr. M. was called to 284 court he said that he had taken over the property because Mrs. A. was too old to look after it. He said that there was 6 months inter- est due on the mortgage, that the taxes and water rent had not been paid for a year and that the trust company wanted the mortgage con- siderably reduced. He said that- he was willing to give the property back to his mother-in-law and also claimed that he had supported her for some time. A Probation Officer interviewed Adella, who said that she knew her father left enough money to maintain her mother till the end of her life, but that she did not know what had become of the money. She also stated that a son had left her |500 in cash. She claimed that she had offered her mother a home but she soon became dissatisfied. Mrs. K. and her husband, being of a ripe old age, had not sufficient strength to go into the world and earn a living. They had five chil- dren, three sons and two daughters. And no one of the children was able to support both of his parents. Consequently the old folks had been separated after a lifetime of struggling, working and living together. Mrs. K. was living with a widowed daughter while her hus- band was staying with a son. Mrs. K. thought that if her other chil- dren contributed something towards her support that her widowed daughter would be able to keep them both. She was very anxious to live with her husband. But the widowed daughter was not in favor with the rest of the family, who said that she was mean and made their mother work for the little returns she got. One son said that he alone, without any help from the family, would take his mother and give her a better home than that which she had. He was not able, however, to support both of his parents. He refused to give any money to his mother so long as she was staying with her daughter, as he claimed that she would never see any of it. Mrs. Q., a widow aged 63, claimed that of five sons, but one, Wil- liam, gave her anything towards her support. The court interviewed the children and one by one they either claimed that they had families of their own to support or that they were out of work. Joseph came to court with an attorney saying that his mother was an habitual drunkard and scold, and that he wanted her committed to a home or hospital. After a few weeks at the St. Francis Home, Mrs. Q. was taken away from there. She had but few clothes, but was in good physical condition. She went to the post-offlce with a Probation OfiQcer to get her mail. There was $14 for her from her son William. She also had |15 under her skirt and she wanted to take all but |2 and deposit it in the bank where she had an account. She then went to look for a room but would not pay more than |1 .50 per week. Not finding one to her liking she went to the home of her daughter. Here a quarrel ensued as the daughter did not want to let her mother in 285 the house because her little girl was sick and the noise of Mrs. Q., she claimed, would harm the child. Mrs. Q. then went to her son's house and again met with refusal at the hands of her daughter-in-law. The daughter-in-law would not have her under any conditions, so Mrs. Q. returned to her daughter, who finally agreed to keep her until she found a room. She stated, however, that if Mrs. Q. made any further trouble between her and her husband that she would have her com- mitted. Mrs. O. came to court and said that she and her husband were living together, but as her husband was a cripple he could not earn their support. She said she was a seamstress but could work no longer as she had to take care of her husband. They had eight children of whom five were married and three single. Two of the sons were in the Navy. Mrs. O. came to court thinking that between the boys, enough could be given to keep her and her husband together. Mrs. M. appeared in court and said that Mrs. H., 77 years of age, came to live in her house two years ago. She said that Mrs. H. had, inherited some money and intended going to a home for the blind. But after the debts had been paid off she had not enough money for the admittance fee. Mrs. M. stated that none of Mrs. H.'s children cared for her and as she was no relation to her, she thought that an- other home should be provided. A Probation Officer called on a daughter-in-law of Mrs. H., who said that she had kept her mother- in-law up until two years ago. One day when she was out working Mrs. M. came and took the old lady to her home because she (the daughter-in-law), had wanted to put Mrs. H. in a home for the poor. She said that her husband would be willing to contribute a little to the support of his mother, but as he was earning only $15 a week, he could not give much. Mrs. H. was finally committed to the Philadel- phia Hospital. Mrs. L. came to court and said that she had been, for some time, supported by her married daughter, Josephine, who had eight little children of her own to support. Her son, Edward, she said was com- fortably situated, and could help her. She asked that he be made to pay her |1.50 a week. The court then sent a letter to Edward. In the mean time, before a reply from Edward had been received, Mrs. Annie M. another widowed daughter, came to court and said that she was not able to give her mother support but that if her brother would pay her board, as he was able to do, she and her sister would supply their mother with clothing and other necessities. The court placed an order of |1.50 on Edward. After about six weeks Mrs. L. came to court and said that her son did not pay his court order regu- larly. He was finally made to pay his mother $10 a month. 286 Mr. John W., aged 68, said that on account of rheumatism, he had not worked steadily for three years. He had been living with his son Walter for some time but he wanted John and William, his other sons, to contribute to his support. He asked for $1.50 from each. John and William agreed, in court, to pay the |1.50 a week. A few weeks later Mr. W. came to court complaining of non-payments. He said that he had moved away from his son Walter. He earned his room and board thru odd jobs. He said he left the home of Walter because he had quarreled with Walter's wife. Mr. W. complained repeatedly of not getting his money from his sons. When Walter came to court, he said that his wife got disgusted with his father be- cause he got drunk and on account of this the latter left his home. He said that he would take him back if he kept straight but he could not afford to pay more than .f0.50 a week. Later Mr. W. re- ported that John was back in his payments. He said that John was working at Hog Island making |40 a week and could afford to pay. This was investigated and found true, but in the meantime, Mr. W. got a job himself at Hog Island as switchman at |15 a week, and did not need further assistance from his sons. Mrs. H. is 53 years old. Her husband deserted her seventeen years ago, and ever since, she had a hard time working and trying to bring up her four children. She now has rheumatism, is very nervous and needs help to support herself. She asked that her son Harry pay her $3 a week. On being questioned, Harry stated that he had just started work at |13 a week and that he could not afford to pay |3. However, he was willing to give |1.50. His mother agreed to this and the necessary papers were signed. After some time Mrs. H. came tc. court and complained that the payments were made very irregu- larly. At about this time Harry married and hearing, thru the Burns Detective Agency, that his father had recently died in Cleveland, leaving some property, moved to that city with his wife, leaving Mrs. H. without any means of support. Mrs. M'. appeared in coiirt and complained that altho her sons were helping to support her, they were not alloting enough money. The sons, on the other hand, stated that their mother was very eccen- tric and a crank, and thru her evil disposition has caused the disrup- tion of the family. A Probation Officer investigating these charges found that Mrs. M. was considered, by neighbors, quite a quiet woman. Mrs. M. was under the doctor's care for asthma, and was unable to work and support herself. She claimed that all her chil- dren were making good wages and could contribute more than, they were at present, without inconveniencing themselves. One was a lawyer, filling a government position, at Washington. She insisted upon having her allotments increased, but her children refused. 287 Mrs. K. was living in a furnisiied room with her daughter Laura. She said she was 65 years old, a widow for 30 years and had raised her family thru her own efforts. She had a pension of $24 a month. Mrs. K. was suffering from heart trouble. She said she was put out of her house by her son, who previous to his marriage was a very duti- ful boy. He had purchased a house for her and the title was in her name. Lately he frequently threatened her life and called her vile names. Mrs. K. would like to collect the rent on the house or have her son vacate. When the deed of the house was drawn up it was stated that Mrs. K. was to have a, room in it for life. Now on account of her son, she was afraid to go home. When called to court the son was very indignant and said that he only bought the house in his mother's name so that if anything ever happened to him she would always have a home. He also said that his mother was jealous, quick tempered and unrelenting. He claimed that his sister, Laura, was the main trouble in the case as she abused his wife and children and had tried to break up the home. The son said that he never threatened his mother and that he refused to give her any money as she had a pension. He said, however, that he would take her back into the house but that he would not take back Laura. Mrs. E. re- fused to live with her son, under these conditions, and continued living with her daughter in a furnished room. Here she took sick and after lingering three months died. Mrs. B., aged 61, said in court, that thru an accident, two years ago, she had not been able to work. She asked the four of her sons to give her a dollar a week each for support. She also wanted one of her sons, who was a widower, to give her a home. One of the sons came to court and absolutely refused to give his mother any support. He said that on account of drunkenness she had never been a mother to him. It was thru her conduct that her husband lost his mind and died. He said that she was never able to live with any of her sons on account of alcohol and that the three younger girls were adopted when very young and that his mother had never both- ered to find out where they were. Mr. E., son-in-law of Mrs. A. B., had been supporting his mother- in-law, who was 72 years old, for 12 years. He earned |1,400, a year but thought that A. B.'s sons should help support the old lady. A. B. used laudanum to the extent of three ounces a week and was under the doctor's care. Mr. E. wanted two sons to contribute |1.50 a week each towards the support of Mrs. A. B. When called to court one son said that he was only making .fl3 per week and had a family of six children to support. He said however that he was willing to do all he could to help his mother. Mr. E. called again at court to see what had been done. He said that it was the price of the drug and that the 288 doctor's bills that embarrassed him. The other son wrote to the court stating that he has honestly kept his agreement with Mr. E. to pay |1.25 per week for his mother's drug. He also stated that he was making but |18 a week. A conference was held at court where one son agreed to pay $1.25 per week and signed the papers accord- ingly, while the other refused to make any written statement, saying that his word was good. Mrs. D., age 76, formerly lived with her son Edward. One day re- turning from a visit she found the door locked and she was refused admittance. She is now living with a friend who is willing to keep her for two dollars a week. Mrs. D. asked for this sum from her sons and was refused. 0. F. is sick and nervous and has to stop work for a while. She has two small children who are not able to work. She asked her married son, Frank, for help, but he said that he had to look after his wife first. Frank has passed the examination for paymaster in the Navy Yard. Frank never replied to the court's letter, but Mrs. F. said that he was making flOO a month and that his wife was making the same. They have no children and Mrs. F. thinks that they are able to give her !^2 a week. Mrs. F.'s two young children are very delicate. On being interviewed Frank said that he was boarding and that it cost him |20 a week. He also said that his wife was sick and had to work to help pay the doctor bills. Under the circum- stances, his salary was insufficient to help his mother. A Probation Officer interviewed Mrs. F. who said that one of her daughters was working for the Bell Telephone Co., making |10 a week. Of this she gave |9.50 to her mother. That was her sole support. Mrs. F. wanted an order put on her son Frank to pay her |2 a week as long as she was not able to work. This, she said, would go to the younger cliildren and not to herself. 289 APPENDIX 15. Expectation of Life in Years, hy Sex. at Specified Ages, Sixty-fixye Years and Over, Original Registration States, Utiited States, 190!) to 1911. Age. [ Males and Females. Males. Females. 65 I 11.60 11.24 11.96 70 0.11 8.83 9.38 75 6.99 6.75 7.20 80 5.25 5-. 10 6.37 85 4.00 3.90 4.08 90 3.03 3.01 3.05 m 2.35 2.36 2.34 100 i 1.85 1.81 1.91 Number and Percentage Population Aged Sixty-five Years and Over in Each Five-Year Age Period After Age Sixty-five, United States, 1910. Age Period. Total: Males and Females. Males. Fetnales. Number. Per cent. Number. Per cent. Number. Per cent. 65 and over, _ _ 3,949,624 1,679,503 1,113,728 667,302 321,754 122.818 33.473 10,946 100.0 42.5 28. is 16.9 8.1 3.1 .8 .3 I,9a5,976 863,994 i)61,644 531,280 153, «5 66,335 14.. 563 4,426 100.0 43.5 28.3 36.7 7.7 2.8 .7 .2 1,963,548 816,509 662,084 336,022 168,009 66,483 18,920 6,621 100.0 65 to 69, 41.6 70 to 74, 28.1 76 to 79 17.1 80 to 84, 8.6 SS to 89, 3.4 90 to 9A, 1.0 .3 Deaths Per 1,000 Living, Original Registration States, United States, 1900 to 1911, hy Sc.r and iy Age Periods, Sixty-fl.ve Years and Over. Age Period. Males and Females. Males. Females. flS to 69 48.6 71.6 106.2 160.9 225.3 313.2 414.7 540.5 .51.7 75.1 112.8 167.0 234.4 315.4 410.3 559.3 45.5 75 to 79 80 to 84 85 to 89 90 to 94 Q^ to 99 155.7 532.6 100 and _ o , "(Tables^taken from the New York Medical Journal, May 19, 1917.) 10 200 I Q 'A i— ( Q J5 H Ph Ph < o o ^1 S -si o o O W +3 " '" dn ? a o ^ -S ■c .Sf bu O tl O .q a ^ bX) ^ 1— 1 M ^ a CO OJ SjO OJ ^ ^ a ".^ J <1 ? ^ bo o a o O) <^ CO " i: ^ *' r- ^ ^ S !^ « >> s 7! ■= S a PI Q 2" s ja -- -S .s p =" •■ 01 2 5 H « O ^ :z; a a ^ 3 3 . ?5 ^ S _ .-- rt T-l 13 CI ^ _ s a ^ rf Oh fe < i> ■s ■a & " S .^ cs .■S b is ^ I a .a 3 ■? ^ ^ o <| 03 ^ 03 03 '^ V 3 ^=9 p. s a J" ^ 3 a SS " 4-1 -y bi •43 1^ 2 i 3 s a 5 3 0) o S. 2 « o3 o) >) d ^ QJ O 4J ^ *^ fl S ^ -^ rHCO:DXO'MCOlO<:OXOClCO rHi-iiHiH,Hi-((MMfM 291 a CD o, 3 o a >i a T3 flj si Tl tj >> 03 a 3 QJ VJ ,j3 3 ■M r/1 an bt\ 03 « ^ ^ rf3 C3 >> 5 C3 n 03 . a P g a Oh "^ a M — ' -^ a ?^ -=3 '^ ro n 5" ° ^ o 3 g g 3 £■ -5 -= ^ -5 ^ o ^ o a -"^ -4J ■c f> 4-J a 2 "TS Tl fl 8 3 O 'O tfJ ^ ^ O d 3 S^' a 6 1 O C3 :^ <^ O )— ( 0^ W :j ^ o ft ^ ^ > +-> CO > » H ii M GQ ;> O ^ Cu J 1^ S Oh ^ J= a => g e S >■ 2 3 X = ;5 iz; H -^ ^ " i o. 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