The Huron Expositor, 1933-06-02, Page 3ALJ
NNE 2, 1903
41�b r.° t `�
is
cc
i
n-
n -
ss
Dn
Jct
at:
ur
ri-
LS-
tr-
ek
sh..
of
rs,
.res-
ail'
re}ail'
rs-
era
:ca
es,
deh.
he
:ilk
Aldi
leas
na.
ip
'vie
:es
he
Yo'
nes
her
Par
her
de
ns
a Ig
Or
Ter
rs
se-
ine
ed
ht
yes
er
ell;
1d'
ns
of
ice
n -
lis
rs.
kM
ed
he
he:
c-
.
r
Seen � �n the.County Papers
r
Firemen Had Early Run.
'At 'six O'clock Thursday morning a
verities' 'fire was 'narrowly avertteile
'when the tar cert used for patching
the . roads in town took fire at 'the
wear of the town hall. Street Com-
anissioner Kinsinrlan had arisen early
• ,and started a fire in the cart to heat
ithh .tar. A few ,minutes later Mr.
lainensan noticed •the apparatus in
tames and promptly turned in a fire
• ualarns. The brigade was on the scene
9i 'n a couple of minutes and extin-
guished the blaze with chemicals.
''The flames leaped to the weigh scale
building and tburrhried a ,window frame
nand melted th:e glass. It was lucky
the eontimissioner discovered the
'blaze at an early stage. Mitchell
Advocate.
Carload of horses Shipped.
The. first shipment of horses: for
anany months from this district left
Seaforth thaal' tter part of last week.
t'Flalf pf the 'ear load came from Bees -
'eels and halo from Goderich. W. A.
Mowry, the shipper, secured the hors-
es around these parte himself, and
bought the other portion ,from' Gode-
each from Mr. Allen'.. They were go-
ing to Thomas Lowry in New Lisk-
earde-'Brussels Post..
United Church S. S. Anniversary.
Brussels United 'Church is hold-
ing their Sunday School anniversary
;Sunday next. 'Mr. F. H. Gilroy, of
:Petrolia, will address both morning
and evening • services, and will sing
also. Mi•. Gilroy was' formerly man-
ager o€ the Bank of Nowa Scotia, and
liras very many friends here.—Brus-
,.csels Post.
Teeswater Nurse Does Well.
:Miss Helen Kathleen Arkell, Tee --
water, a nve+mlber of the graduating
+class at the Toronto General Hospi-
tal this year, won the Gertrude
+011-llara prize for bedside nursing.
Miss Arkell is to 'be congratulated
for winning this prize and also for
•successfully graduating. —Wingham
Advance-Tifees.
Truck Upset Near Blytb.
• 'One of Epps'' transport trucks
seamme to grief about one-half mile
•north of Blyth on Highway Noe 4
last Thursday morning. In turning
out to pass an unmanageable ,horse
-the truck took to the ditch breaking
down considerable fence on the farm
•of Fred Osler before upsetting. The
• •contents of the truck were scattered
'into the field. Fortunately the driv-
er was not seriously hurt. The truck
was badly smashed.---1W'ingham..Ad-
-varece-Times.
Willed $50,922 to Widow for Life.
Mrs, Annie Brown is left a life in-
et.erest in the $50,922 estate of her
'husband, Harry, a former resident of
this town. who died in •Toronto on
March 4th. Residuary legatees and
their shar.s are: Sarah Roller, dau-
ghter, $16,9'80; Aaron Brown, son.
ts7,580: Susan Brown. daughter. $:5,-
'700; Abraham Brown, son, $,12,580;
Moses Brown, son, $8,050. Assets are
Teal estate '$17.973: mortgages, $24.-
'905; cash, $7,243; .'bonds, $500, and
hhousehold effects, $300. — Wingham
'Adv+'arse-Times.
Goderich had a short visit from
one of Canada's •industrial captains
et the weak end in Mr. D. R. Gross-
man. vice-president and general mat -
sager of the .Studebaker Corporation.
• He was here with his wife and young
daughter en route to Oeven Sound,
'driving a beautiful Pierce -Arrow,
which is, now owned Iby the Stude-
baker Corporation.--Goderich Star.
Suggests Bird' Sanctuary Here.
Messrs. Geo. Laithwaite and Wm.
'Symonds have returned from a motor
trip to Windsor, Detroit and Fort
Erie, the return trip being made by
way. of Leamington and Kingsville,
Where they paid .a visit to Jack Min-
er's !bird sanctuary. 'In conversation
-with Mr. Miner he told the visitors
be thought there were excellent facil-
ities around God:erich for the 'build-
ing up of a sanctuary. It was notic-
•.ed that in the Elie district, app
trees were in 'full blooms, while in
the central counties the bloom was
not ass far advanced.-sGoderich Star.
Will Summer Be Cool?
IA prediction that the sun will be
colder for the next two years, with
the 'pos ilbility the earth will be af-
fected in a • way yet unknown, has
been issued by the Smithsonian In-
stitute at Washington. For the next
24 months, said • Dr. 'Charles G. fAlb-
bot, secretary of the institution, the
heat that' issues from the sun and
makes Life possible on earth will be
somewhat below normal. This does
not necessarily 'Lean the earth will
'have-two`cald years for earthly wea-
ther fa `affected by many .influences
besides 'the sun's heat. Hafwever, it
is believed the cold years on the sun
must have some affect on the earth,
though what it will be is unpredict-
able. Dr. Ablbot already has had
some sjccess as a predictor of the
sun's ''weather." In 19$0 he 'fore-
cast two warm years on the sun,
which in general has been fulfilled.
Measurements have :shown that the
sun has been giving out,considerable
more heat than normal 'since then.—
Zurich 'Herald.
Medical Men Meet.
Huron 'Medical Association held its
quarterly -meeting 'Wednesday last at
Alexandra 'Marine and General Hos-
pital. 'Between twenty and thirty
members ,.of the medical' profession
were 'at 'Goderich from all parts of
the county. Dr. A. J. MacKinnon,
of Zurich, president, was in the chair.
The guest speaker, 'Dr. Gilchrist, of
Toronto, delivered a splendid address
on "The Treatment of Diabetes with
Insulin.". Dr. 'Macklin, of Goderich,
read an excellent paper on "The
Nervous •Systetmis ' of Pernicious An-
aemia." Dr. Connell, of Lucknow;
Dr. Taylor and Dr. Whitley, of God-
erieh, also discussed several matters
pertaining to the profession. The
question ofs state medicine in its pres-
ent status was discussed. This has
,been under Services for twenty-two
years. The next 'meeting will be
held in Clinton. Zurich 'Herald. •
Fatal Accident at Porter's Hill.
IA very sad accident occurred on
the farm of Mr. JaYck. Yuill Tuesday,
just at noon. Mr. Russell Fenn, who
has been working for Jack for' some
time, hitched the team to, the roller,
tying the harrows' behind; the team
became frightened and ran away,
throwing him to the ground, the
roller passing over his body, killed
him almost instantly. Much sorrow
is felt for Mrs. Fenn- in this trying
time. Mr. and 'Mrs. Fenn have lived
in this district for almost a year and
Trade many friends.•-1Clinton News-
Recor.d.
'Launches Powerboat.
:Mr. et. Colborne, Wellington St.,
successfully launched his twensy-five
foot home-made powerboat on Sun-
day last. Mr. Colborne had been
working on the boat since last Au-
gust and completed; it last week. It
is, equipped with a Chevrolet engine
•that is' capable of doing ten knots
per hour,—Goderich Signal.
Pineapple Jhm
Peel the pineapple and remove
eyes. Discard tough core,, and put
remainder •through the food chopper,
using a coarse cutter. Place a dish
under the chopper to catch the juice
as it .falls, and work quickly. It
work of chopping is delayed, metal
will. discolor and will spoil, the flavor
of the fruit. Measure the fruit and
juice. Aced three-quarter .cup of wa-
ter for each 4 cups of•the fruit and
juice. Bring to boiling point and
simmer in a covered pan for exact-
ly 30 minutes. Remove from the fire.
When a large quantity of fruit is to
be cooked, the. time for simmering
should be'increas'ed..
When making this jam, best re-
sults will be obtained when only a
small amount of this fruit is made
up at one time, The method is a
quick one. and a large amount of the
jam can be made in a short tine`
4
Acorn Barn
Ventilators
Prevent spon-
taneous combus-
tion. Base, 20
in.; Drum, 16
in.; Height, 4
ft 5. in. -only
$5.00.
11011111111111i 111111
Preston
Ga van zed Tanks
Special Spring Sale. Writh
for prices.
Slocum's
Spark
Arrester
For your
house chim-
ney. Fre-I
vents roof
fires.
• Slocum's Fire Suffocator
For 'putting out fires when
-they are beginning.
PRESTON Barn
Door Hardware
We can save you
money on your
barn door.hard-
ware. Write"' for
prices.
• Preston Steel Clad Barns
Built with rugged steel
trusses or plank trut'ahs.
Roofed and sided with fire-
proof steel.• Write for
"book About Barns".
rn
Use Preston
Led-Hed"
Neils
Lead is used on
the head of these
nails to seal the
nail -hole. Now
only l5c Ib.
Millions of dollars worth of farm build-
ings are being eaten up each year by ro
and decay caused by leaky roofs, and b
fires. Save your buildings N 0 W befor,
they get beyond savitig. Re -roof" with
Rib -Roll.
Rib -Roll is permanent. It cannot arp,
shrink, peel, crack, curl or bulge. .It is
fireproof—sparks cannot ignite it. hen
properly grounded at the four rners
according to the Ontario Lightni g Rod
Act, it gives complete lightning protec-
tion.
"Council Standard" Rib -Roll is now sell-
ing at the lowest prices in history. Quality
is still maintained at its highest point.
Write for free sample and
useful roofing booklet.
We make all kinds of Sheet
Metal Building Materials.
liNCII.STANOAR.1
444 purl COOtO,4
Earn,Fmdut
Guelph Street mited Factgries also at
Preston, Ont,/ Montreal & Torbato
AL ^y a a atG
evenwest it Must be m e elp • in
Ow or six •ibalttc'hee. Belem starting
to snake up the jane, have .evez+r
thaw in readiness—sugar measured
out; • jars ready, co'mmerciai pectin
open and ready.
IMeatfuire into a fairly large •sauce-
pan 4 ceps of the simmered fruit
anid - juice mixed. Add 7 level cupfuls
of granulated sugar. Stir. Bring to
a full nailing iboil. Boil exactly 1
minute by the elook. Add" 1 bottle
of celn-.imercial (pectin alvd ' one-half
teaspoon tartaric acid (pure fruit ac-
id—sold by all druggists). • Remove
from the ,fire, stir, and let stand for
5 minutes, stirriri'g occasionally, then
pour into hot, sterilized jars. Cover
with a thin layer of _.paraffin and
when fruit is cola, add more hot
parafitn, rolling they, jar to make a
perfect seal. Tie down, or adjust
lids, and store in a cool, dark place.
' Pineapple Preserved Raw..
(Shred pineapple and measure it.
Add an equal quantity of sugar, mix
well in a 'c'rock or earthenware dish
and let stand from 24 to 36 hours
in a .cool place, until sugar has dis-
solved. •Stir occasionally. Keep cov-
ered. Place this fruit in cold. ster-
ilized jars, seal tightly and store in
a cool place. This mixture has a
delicious flavor and is very appetiz-
ing when 'used as a sauce for pud-
dings and .plain ice creams. It is too
rich to be eaten as a preserve.
Birth Control Needed
in Banking
In the decade ending, with 193? the
number of banks in the United 'states
decreased from about 80,000 to a
little less than 20,000. 'One bank out
of every three bit the dust of in,
solvency, and in doing so wiped out
stockholders, froze deposits, and in-
fir•+ed' substantial losses upon entire
regions. Though the depre:ision un-
questionably brought particular grief
to our ,banks, the fact re'm'ains that
it .merely emphasized more clearly
certain basic "faults in our banking
system—and in our bankers.
The point acquires added force as
we note that Canadian depositors
have last no money whatever through
hank failures. Why have we been
selected for special sorrow, and
wherein lies the secret of Canadian
banking strength?
There are marry differences be-
tween the systems of the two coun-
tries, first and most obvious of which
is the presence of nation-wide branch
system's in 'Canada and the confine-
ment ..of 'brant'}, banking in this sou n -
try to a limited number .,pf states. It
has been argued -that the distribution
of Ojr•an'ches throughout the country
enables a 'bank to diversify its risks,
and thus acquire a stability not op-
en to the batik which serves but a
single com'm'unity. This •is a time -
Worn analysis whose' greatest virtue
is that it is easily understood. B«encli
'banking Cr.Iay be desirable for w other
reasons; but its. merits from the
point -of -view view of safety are more ,ap-
parent than. rear`. The most serious
'hank failures ..in this country have
been those. of banks with great sys-
tems of branches, notably the Bank
of the Ur -'ted States and more recent-
ly .the two banks in Detroit 'whoa?.
failure ushered in the great standstill
in American banking.
A far snore vital difference, is the
severe limitation in the number of
Canadian banks. 0£ these there ai•e
at present but ten, which, through
tranches, serve every community`.
Banks, like all other enterprises,
must subsist upon a ivoluinee of busi-
ness that has 'a direct relation to the
population, wealth and 'business ac-
tivity of the. community. It is not
curly difficult but irtprud'ent to at-
tempt to drum' up business deli+berat-
eJ;y for the purpose of 'suppo'rting a
bank. The sale Of Peruvian" bond's
of d'oubtful Tem it by evangelical
salesmen is a good illustration of
what happens when hanks are forced
to resort to un•wholesotne competi-
tion.
Canada has had the foresight and
the great political perception to prac-
tice strict birth control in the grant
of bank charters. The matter is left
largely to the" discretion of the Can-
adian Bankers Association. , The ap-
plicant must demonstrate a need for
banking facilities not adequately pro-
vided by existing' tanks.. To illustrate.
the imlpontance of this point, take
the experience of North Dakota and
New York State. In 1920, North
Dakota had 898 banks or one bank
for every 725 inhabitants. New York
had 1056 banks, one for every, 10,400
of her citizens. The human base
which supported one 'bank in New
York bad to support fourteen banks
in North Dakota. During the period
1920-1929, 444 banks failed i'n New
York. Our state .banking coma nis-
sion•ers; and this applies to the Comp-
troller„ of the 'Curren'cy in the years
immediately following the war, dis-
pensed charters- with utter indiffer-
ence Ito community needs.
An equal disregard for the safety
of our barks' is evident in the capital
requireirrients set up by statute. In
Canada no bank can sitert in busi-
nese sinless it 'has,um. paid -in capital
of half a :million dollars. If a bank
makes mistakes which result in lose -
es, they are chargeable first to the
profits of the 'bank, avexrt to its capi-
tal and finally to the depositors. Thus
the greater the capital fund the safer
the 'bank, other tth'tings 'being equal.
But many of our states have no min-
it'utm capital requirement for banks.
A bank in Tennessee with only a $5,-
000 eapital for years 'solicited funds
of depositors.
The element of reasonable profit
is another factor of se£ety. 'Canada's
banks co-operarte in .the determination
of reasonable interest rates upon de-
posits, which permits. the banker to
invest his funds safely without the
necessity of courting those high
yields that. come only with undue
risks, The rate on savings deposits
for years has been uniform through -
abut Canada. at 3• three per cent. and
on demand deposits at of 1 per
cent., as contrasted in this country
with an average of over 4 per cent.
on savings and until recently pf 2
per cent. on demand accounts. These
high ,rates are, the result of com.peti-
Sion among en excessive number of
banks for a limited atlou.nt of ,busi-
ness. The banks in turn are compel-
led to consider "attractive 7 per 'cent,
,bonds," In the end the depositor
pays the 'bi'IL
;An'at'her f orxr}, of ' wl�a lnie .eon
pettition T an i i ' coimtry
which does Slot eaffat in --Canada 1
that between vaaialla aliatallaa o'f
basaca. Iblclttding ,the felarai govern-
arent,, there are 48.different 1'urig4104
time 'under which 'ban'k's may oper-
ate. The greater laxity Of state laws
the lower capital requirements, the
less rigid inspections, the right in
many stales to purchase and own
stocks, have kept approximately twos
thirds of our 'band's within state
folds in spite of the decided advant-
ages of a national character and
membership in"' the 'Federal Reserve
System. Ne 'Canadian 'hanks are
ohartered by Provinces.
Canadian banking law offers some
startling contrasts to American leg-
islation. IMost important is the pro-
hibition of 'leans upon the (security of
real estate. If a (bank accepts a
$5,000 deposit from 'Smith, .payable
on demand, arid •then • lends it to
Jones on a five•ryear real estate mort-
gage, it :may 'find ,itself in a most em-
barrassing position should Smith d'e-
eide to exercise his right. This is
precisely what the :Smiths in this
country did, last Feibruary to banks
which had loans to real-estate owing
Joneses that could not be collected.
The result was the national banking
holiday. Canada wisely eonfrnes real
estate 'loans to insurance and special
mortgage companies; Who are not
obligated to pay out assets on demand
to creditors or owners.
Other significant rules are . the'
taboo upon loans secured by bank
shares, the 'prohibition of loans ex-
ceeding $10,00'0 to any officer or bank
employeeNted the bans upon partici-
pation by the ,bank in any trade or
lnrsirness or 'the ownership of toms
mon and 'preferred stocks. The Can-
adian law embodies the curious no-
tion,th'at'a (bank should stick to bank-
ing. •
'However, after alil5s••said and done
it remains to. affirm that 'banking is
a professeare No forms or rules can
assure good banking without good
bankers. It is, in the quality of Can-
aclian bank management that Canada
perhaps finds its greatest banking
strength.. There is a pride in safety
and service, the flower of a deeply
rooted tradition of banking, to which
the desire for profits is conepletely
subord'inated. To a Canadian bank-
er it is unthin:kaible that the :pres.pec't
.of a fat bonus or an extra half per
cent. to s'tockholdei•s should lead to
doubtful loans. Canadian hankers
serve, a long Apprenticeship and are
carefully trained.
What a contrast to the• American
(banker! Early in January a small
bank in an eastern state folded up,
The story is characteristic. The presi-
dent was a retired soap. manufactur-
er who, restless for something t.do,
ort 'anize•d' a bank. With corn l tend
:elale civic pride, but atrocious• bank-
ing judgment, he backed a new con-
vention hall with his own and deposi-
tors' funds. A receiver is .now min-
istering last rites to Jibe bank. Such
an experience is not pos'si'ble in Can-
ada. Canadian bankers are not train-
ed in soap factories,
- Far Outdoor Appetites
Unfortunate, indeed, is ;he. ,?oy or
girl who does not k.nov' the whele-
sone joys of summer camp; who has
not felt the exhilaration that !crines
frclm being close to nature end under
the "spell of thepen s'k'y"; wlrnse'
nostrils are not familiar with the
savory odor of steaks sizzling over
an open fire.'
Camp days can be some of the
happiest days of a child's life. There's
a thrill in delving into the wanders
of nature., There's 'stimulation in t!te
health.giving freshness of air ar.d
warm sunshine. There's relaeati;'n
in the long, nerve -soothing 'silences
of the open.
Jaded city 'ap'p'etites are revived
after a long tramp through the
woods or an invigorating swim.
.Johnny, w.h.o wouldn't drink milk at
home, finds it tastes surprisingly
good at camp. And Susan who usu-
ally turns up her nose at eggs wel-
comes them with zes,t when 'they are
served on a 'bacon triangle hot off
a large stove,
Do you know how to fix there that
way? Fitid some flat stones and
place thein beneath the fire to get
hot. .When they are heated and out
frau,' beneath the fire, lay triangles
of bacon on thein. Place the three
strips of ba,ecm for each triangle;
close enough together so that when
the fat melts, and the egg is broken
into it, it will hold together and you
'can turn it' by lifting the bacon. Sim-
ple, isn't it?
It's surprising ,how easily a full
meal can be prepared ov,cr an open
fire without the use of 'even a single
cooking utensil. .And it is heaps of
fun boo. Wouldn't the lollovtng
menu meet a hearty welcome after a
long hike?
Kabobs
.Baked Potatoes
Buttered whole wheat rolls
Baked Bananas
ICup of Milk.
Kabobs are the campers' name for
broiled steak. To make them, you
will need ti pound of round steak
and a half of an onion for each per-
son. As'k the market to cut the slic-
es of meat r'ttlto 114 inch pieces when
it is ordered. Out •a green stick, ,,and
sharpen it at one end. With it,
pierce one of the pieces of meat,
then a slice of onion, then a slice of
meat and then another piece' of on-
ion and so on until everything is
on the sti'dk, Broil the 'mleat by hold-
ing or suspending the stick over -the
fire. It will probably take about 10
Traveling Salesman
Was Almost Ruined.
Greenville, 'Mise.—W. A. Huber,
recently said: "Traveling day anti
night and eating in cafes and ho-
tels had a lot to do with my case E
know, but I was in mighty bad
Shape. Constipation had practically
ruined me. I took every kind of
laxative I ever heard of, but they
only aggravated my trouble. When
I started taking Sargon and Sargon
Soft Mass Pills I just had to drag
myself out of bed and through the
day. The trea.tment not only res
levee, me but I heve aetua.11y etl
85 pounds in weight."
C. £I#ERIIAl3if
•
from now until Jan.
1, 1934, for new sub-
scribers only. What
a , bargain; All the
news of the tow'n—
the country — t h e
county --the editorials
—the advertisements
of leading merchants
are in The Huron Ex-
positor each week. This special offer for new sub-
scribers•means that the best in Seaforth newspapers
is now available at less than cost. Cut out and send
in the' attached coupon with 50 cents. Act now.
•
THE HURON
EXPOSITOR
McLean Bros., "Publishers ,
Established 1860
PHONE 41, SEAFORTH
Sins:
I enclose 50 emits. Will you
please send me The Huron Ex -
posher as per your 'special
offer.
Name
Address
minutes to broil over hot coals. .
The potatoes are baked by wrap-
ping them in wet leaves or wet
brown wrapping paper and burying
them under the fire. This takes about
an hour, depending upon the size of
potato. As soon as the potatoes are
done,' be sure to break them open sol
that the steam may escape and the
potatoes will be flaky and not sog-
• gy.
The bananas can he baked the!
sante way as the potatoes, in about
15 minutes. You night want to
squeeze a bit of Penton juice over
the banana when eaten. ' Or here's
another idea. Lay back a section of
the banana peel, remaT•e two or three
small chunks of banana and replace
by hits of niar.sshnaallow to fill the
spaces. Then ,bind the peeling on
again and roast under the fire.
Watchman, What. of
Our Pensions?
Tony Bacigalupo is 35 years old.
He has been employed by a steel
company for five years. Now that
he has a family he sometimes won-
I'r rs what will happen when he is
old. Will he crawl about like Old
Iioppo, begging on street corners? Or i
will he line respectably like Old,
Martino who has a pension from the'
company?
r'Vshat chance has Tony 'of reeeiv•
ing a peneidn? Before he can reach
the desired goal he must jump
through more hoops than . a circus
performer. Here are. sdirne of them:
1. He must be employed' by a com-
pany that has a pension plan. Only
4;000.000 industrial workers out of
28,000,000—one in seven—is lucky en-
ough to work for such a company.
2. (He must remain with the com-
pany until he is 65 years of age.
3. He must have continuous 'per-
formance. If his last six months, or
year, layoff is at the age of 55 his
cth•ance's for a pension are virtually
nil. There are probably 85 chane
in 100 that he will quit the jab, or
die, before reaching pension age.
4. !If 'he remains with the company
till he is 65 the pension plan must
still ibe in effect—a mighty big "if."
G. Once the pension has been
granted the company must decide to
keep on paying it. Most voluntary
plans have no legal obligations, and
the pension can be reduced, or dis-
continued.
The plan in Tone's cosnlpely is typ-
ical. IIt is non-contributory, anti bas-
es the pension on Tonyle average an-
neal wage for the few years just pre-
ceding >;etirement, multiplied by the
minilber of years in service. Thus, 1
per cent: of his incdme of $1501) a
year, Multiplied by 36, the years in
carrupany employ lip to 6151, would
gi'v'e Tony a ,pension of $525 a year.
The ease of Tony, multiplied many
thousands' of times, throws into high
relief the d'elbaele of a 'plant that
once was heralded as a snout prop
of the existing indu's'trial order.
These are the conclusions derived
from a monumental work on indius-
tri•al Pension Systems in the United
'States and 'Canada, just completed,
after .fiivie years of study by indus-
trial Relations Counselors, Inc., a
non-pro'fit-+mlaiking research organiza-
tion, the trustees ofwhirJh include
Raymond B. Fosdick, Cyrus McCorm-
ick, Jr., Jahn D. Rockefeller, 3rd, and
Owen D. it°oun'g t
Private industrial pension plans
were first inaugurated in 1873. Rail-
roads first put such plans into effect
and their example was followed by
banks, public' utilities and ,manufac-
turing industries. 'The prosperous
years 1925 to 1929 saw a strengthen-
ing of the financial bases of the move-
71ent, .but since 1929 the mortality
has been extremely heavy. Nine-
teenths of the workers covered be ,pen-
•iiin plans now may los•e.their pension
prospects at any time.
The report has" disclosed a host of
reasons for this state of affairs, fore-
most among them. the following:
Inadequate .,financing. lack of legal
safeguards. discrimination in favor of
:ttanamemtnt• and against 'the rank
end file of ,worket;s, and misconcep-
: ion of the nature and true uses of
pensions.
Haphazard financing has been the
rut• for most pension systetms. Dis-
regerding actuarial considerations,
most of them di.pend upon current
revenue to cover pension payments.
Depreciation of pension fund invest-
ments and incomes have impaired the
future prospects of a number of pen-
sion plans.
Stockholders seeking to holster up
dwindling die idends are beginning to
iuestion the legality of obligations
incurred in pension plans. and a
Federal Crturt derision in one case
inslicates that probably pensionuar-
antees no'l, ratified. by stockholders
are invalid.
Plans to which employees have con-
tributed have proved no less risky
than other plans. When Morris &
omipany, Chicago packers, were
merged with Armour & Company,
the pension liabilities of Morris to
its 600 retired ,pensioners alone a-
muuntnd to $7,000,000. Armour re-
fused to assvlmie the liability, and a
court held' that the pension plan ere-
ated no contractual obligation on the
part of Morris„& Company.
Pension fundis may 'sometirues be-
come the objeot of stock market man-
ipulation,, even 'in cases where the
company has guaranteed the pension.
The head of a large industrial' cor-
poration was tremendously excited
one day upon receiving a circular
from a brokerage house which com-
mented on the reserve set aside for
pension's and pointed out that a size-
able extra dividend could be split if
a pool were to take control of the
eomlpany's stook, abolish the pension
scheme and capture. the reserve. The
pension funds of this company were
not legally trusteed and they were
susceptible of removal. The stock
,jobbers were frustrated 11y the com-
pany which quickly remo'v'ed tlhe fund
so that it could not be "captured.”
'W!hen is a pension guarantee worth
more than the paper on which it is
written? Only when the funds are
adequately trusteed, 'because other-
wise the plan courts insolvency. Be-
sides, the temptation to tam'p'er with
funds, or to reduce pensions, may be
irresistible. One of the largest cban-
panies in its line has a plan guar-
anteeing the pensions will, be 'paid as
long as pensioners live. ` Early last
'year it decided that too much was
bei'n'g paid pene'ioneas.and when they
received their ,next cheques they found
on the back, a statement in whhih
they were to agree to a 10sper cent.
reduction. To cash the check ,they
had to accept the curtailed penasion
'benefit. There is not yet one com-
pany maintaining an irrevocable plan
so that, strictly speaking, no indus-
trial pension in existence offers ab-
solute pension security. .
(Most plans 'favor managerruent un-
duly; sometimes the aggregate pen-
sions of a few executives almounts to
half the aggregate pensions of hun-
dreds of employees. Here is the way,
the pension schemes operate to favor
the upper class group. The ordinary
employee begins at a low wage, and
his income tends to rise'in slow stag-
es until he is 45 or 50. Hid .average
wage is what he receives from the
ag8 of 25 to: 35. The wages of man-
agement, however, tend_. to keep on
going up until the executive retires.
Since pensions are usually based on
the last ten ,years' nay, executives
draw higher pensions as their in-
comes have continued to mount.
'Dramatic evidence of the failure of
the whole industrial pension move-
ment is implicit in the conclusion of
the report of the Industrial Relations
Connselods which lists 29 safeguards
and precautions that should be tak-
en in formulating any industrial pen-
sion plan. These include guarantee
of funds,, adequate financing. flexibil-
ity as to retirement provisions, sep-
paration of paper and ]bwer ranks to
avoid discrimination.
What is the future of ' industrial
pensions? Few plans will be able
to survive unless there is a measur-
able recovery from the depression int
the near fteture. Business improve-
ment is absolutely necessary in or-
der to permit the accumulation of
large funds necessary to same these
plant.
"Voluntary provisions of complete
old age security by industry under a
business economy, in which the crit-
erion of success and the condition. of
continued existence.* profits, inevit-
ably involves inescapable contradic-
tions," the report concludes.
The logic.of the pioneer work un-
dertaken by the Tnduatrial Relations
Counselor% points only in one direc-
tion; towards- a compulsory govern-
mentally sponsored old age pension
system if mere than a fraction • of
industry's superannuated workers are
to be properly cared for against old
age distress.
CENTRAL ECONOMICAL
SPOTLESSLY CLEAN
THOROUGHLY MODERN
ROOM RATES
WITH RUNNING WATER St SO .o
WITH PRIVATE RATH 22.50 uo
BELL PHONE INEVERYROOM
WRITE FOR FOLDER
HOTEL WAVER LEY
TORONTO