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» t 4 The Chronide Strives To Be A Clean News paper, Complete, Newsy and Reliable / Site GUintmt If You Don’t Read The Chronicle You Don’t Get the News Volume UI i ~.= Clinton, S. C., Thursday, December 13, 1951 Number 50 A Regular Chronicle Feature PENSION PLANS MAY BE BIG TROUBLE OR A REAL HELP Parlr Tv-r 7 A nrar hjive & Committee appointed Babson ^ ark ’ ~" DeC ; 7 * A representing the itock- and very important development i» ho i d€rSf on e member representing 4MVI«%ev Im I sr i»asitort f Anri aw - - — - - - wwa mav>diitT~ taking place in the investment and labor world in connection with em ployees' Pension Systems. It is of ut- most importance to every employer and every reader of this column. Pension Systems tnay greatly im prove labor rela tions, or can result In colossal trouble. At the present time they are not con trolled by legisla- ■ tion and usually by the corporations and wageworkers enjoying them. What Is A Pension Plan? There are various forms of Pen sions Plans and all should be “cus- W. Bsb* unsupervised the wageworkers, and one member representing the executives. This Committee selects a lawyer to draw up the proposed Pension Plan, an Actuary to determine the annual payments (unless an insurance com pany is used), and a Bank to receive the funds for investment. If the Committee is wise, before any plan is adopted, it will first employ some impartial statistical organization to give independent advice in the in terest of all parties. Some Pension Plans are “contrib utory”, in which case the wagework ers make a contribution, but in most cases ,the entire burden is carried by the corporation. After the above steps have been consummated, the work consists of an actuarial study each year to determine how much As Washington Seas It... THE NATKUUL SCENE definite indication as to his inten tions. As a matter of fact, the story was still going strong in Washington that — j it might be possible that Presindent 1 Truman would nominate General Eisenhower in the Democratic na- convention, giving him a and the “draft" Special to The Chronicle. Washington, Dec. 10.—President tional Truman this past week kicked of! unanimous vote the Democratic presidential cam- which he maintains must be shown paign in a speech before the na- before he would become a candidate, tional democratic womens clubs, other important stories on the challenging the Repifclkans to make Washington salient the atroc- this nations foreign policy an issue, j ty 5^1^ of the massacre of some but in no w«y giving an indication, 8 000 u s prisoners in Korea by that he would make the race for ; Chlnese Reds and tom made” for each different cor- should be paid to the Bank and poration. Usually they provide for compulsory retirement at W years of age and optional retirement after thirty years of employment Each wageworker receives a pension based upon his salary and number of years of service, less his Social Security Pension. A full pension usually av erages about $150 a month for wage- workers, and up to $600 a month for executves. For a new corporation without any back obligations, this is a very sim HOW THE BANK INVESTS THE MONEY. The payments to retiring employees are made by the Bank. Where Is The Dynamite? The work of the Trust Depart ments of Banks has heretofore been limited largely to handling Family Trust Funds, serving as Executors of Wills, and operating Agency Ac counts. In these cases only a few beneficiaries are involved. If the Bank then makes a mistake, only two or three children may be affect- pie matter. Even for old corpora-.ed. When, however, a Bank is in- tions it is simple to care for new em- ; vesting this money for 1,000 wage- ployees and to make CURRENT workers, whose families are de- APPROPRJATIONS for old em- 1 pending almost solely thereon in ployees. But, when it comes to pro- their old age, the situation is very viding the money to take care of the i different. All parties involved are back years of old employees, this sitting on a keg of dynamite! Hence, requires heavy appropriations. To the greatest care should be taken. encourage corporations to adopt these Pension Systems, the Govern- money in-Government Bonds, fer ment allows (if definite rules are followed) the corporation to charge all such appropriations to EX PENSE. This means that Uncle Sam will pay about one-half of the bill. The corporation also can have the Trustee purchase some of its own stocks, which may be very advan tageous to all concerned^ Method Of Operation The usual method of operation is Some Banks want to invest all the re-election. President Truman also forecast use of a huge “slush fund” by Republicans in 1952 and a con tinuation of the “smear” campaigns which were so successful in Mary land, Ohio and Utah in the 1950 congressional elections. Republican National Chairman congressional demands for a probe, indications were that there would be none before a cease-fire was worked out as a result of pending negotiations, probably by January, when the atrocity facts would be come known. Although President Truman did drawn before the senate could act and 173 nominations died with the end of the session without action. These nominations included 1,326 postmasters of which 1,177 were con firmed and 137 were unconfirmed and will have to be nominated at the new session. The President made 1,521 nomi nations of civilians for jobs other than postmaster of which 1,471 were confirmed, 28 withdrawn and 20 were not acted on. The two re jects—the two Innois judges, were the only outright refusals of the year. A total of 23,437 nerw com missions and promotions in the armed forces were approved with out a rejection. The inside story is that President Trunnan is finally aroused over frauds in the tax division of the government and in other division? and is determined to oust those re sponsible for any black marks in his administration. He started with the firing of Theron Lamar Caudle, assistant attorney general in charge of the justice department’s tax di vision. According to information, others in the department of justice may get the axe or resign under Are. OFFICE SUPPLIES ' Complete Use, all the little Item* needed for the office. CHRONICLE PUBLISHING CO. Phone 74 Guy Gabrielson answered the Presi- J not j are ^ on ^is requests dent’s charges by declaring the f rom a recalcitrant congress, legis- Democrats spent more money in the lative-wise, he ran up a 99 per cent 1950 campaign than did the R«- score on approval of nominations publicans, but spending reports from sen ^ Senate. Two most im- the three national campaign groups portant which were not approved, in each party, plus local spending, j, u t -which on the other hand were indicated Republicans spent $3,176,- 205, while the Democrats spent $2,971,213 in the 1950 campaigns. Elsewhere on the political front in Washington, Harold Stassen, president of the University of Penn sylvania, announced his presidential candidacy and opened headquarters in Washington. Under Senator Henry Cabot Lodge, Jr., of Massachusetts, was named to heap up the Eisen hower organization, although Gen eral Eisenhower still had given no not voted down, were those of Philip Jessup as a US delegate to the United Nations, and of GeneBfil Mark Clark as ambassador to the Vatican city. While publicity was given to these two, plus two nomi nations for U. S. judgeships in Illi nois turned down on rejection by Senator Paul Douglas of Illinois, the senate confirmed all of 26,284 nomi nations with the exception of the two judgeship rejections. General Clark and Jessup. Forty were with- American Flyer ■i Trains and Accessories \ Complete Yarborough Oil Go. “Your Goodyear Tire Store” PLENTY OF FREE PARKING SPACE Dr. W. W. Adams VETERINARIAN 614 Musgrove Street Phones: Office 958 Residence 991-W Clinton, S. C. getting this policy was followed by the big banks of Germany where these Pension Plans started. As a re sult, the money was entirely wiped out with a total loss to everybody. Other Banks want to buy stocks now selling at an average of $270, thus forgetting that these stocks sold at only $42 in 1932 and may again. Other Banks want to buy only cor poration bonds, ignoring the con tinual decline in the value of the dollar, as do the Life Insurance Companies. Finally, there are banks which follow all three policies un der the “shotgun” theory. The cor rect procedure is for the Committee, after employing outside independent advice, to consult with the bank about the policy, and inform the wageworkers quarterly thereon. This cannot be done by using an insur ance company. SUBSCRIBE TO THE CHRONICLE i: The Officers and Directors Of This Association Take Pleasure In Announcing A 3% DIVIDEND As of Dec. 31,1951, To Investors To Be Paid Dec. 31 In addition to earning attractive semi-annual dividends, the funds of each investor are insured up to $10,000 Own Your Own Home! 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