SYSTEM OF LABOR PENSIONS AND INSURANCE 507
academy. In addition a night school is maintained by the firm for its employe's.
One of the first efforts of Mr. Dolge was the founding of a Mutual Aid Society among his workmen in 1881. To this the employer has contributed liberally, though its chief support is derived from membership dues. The firm also experimented with various forms of profit-sharing; and with two or three fore- men this plan is still continued, the firm being bound to continue this as long as these men remain in its employ. But these plans were not satisfactory for many reasons. Mr. Dolge believes any such plan "wrong in principle and as a rule detrimental to the development of an enterprise;" that "any system which depends solely upon the will of the employer, and cannot be made an inseparable part of the wage-earning system is repul- sive and therefore not worth considering." Dissatisfied with his experience in profit-sharing, Mr. Dolge turned to other experiments. In 1882 a system of pensions was introduced and four years later a system of life insurance. These various sys- tems were combined in a general one in 1890, including pen- sions, life insurance and endowment, the latter being substituted directly for the profit-sharing schemes.
While the plan as thus reorganized has only been in opera- tion for five years, yet the principle upon which it is based has had a test of twenty years. While the perfected plan is the result of experience, the fundamental principle is a conviction, and has always been the same. This principle is that the employer, the industry, should provide against the depreciation of the employe's, and for their continuance and development, just as he does for the manufacturing plant ; and as a certain percentage is set aside against this latter depreciation so a similar percentage on the wages fund should be set aside to be devoted to a similar service in respect to the employe's. Twenty years' experience has demonstrated that in this business I per cent. of the wages fund will do this. Mr. Dodge holds that a busi- ness that cannot stand such an increase in expenses is so unstable as to be a menace rather than a benefit not only to its proprietor but also to society.
