The Clinton chronicle. (Clinton, S.C.) 1901-current, December 13, 1951, Image 1
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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!
When you are ready to buy or build
we are ready to help you.
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Federal Savings
—K-
(AND LOAN ASSOCIATION
A Clinton Institution Serving Clinton People Since 1909
Telephone No <
OFFICERS AND DIRECTORS
B. Hubert Boyd, Preaident J. F. Prather, Vice-President
J. Sloan Todd. Secretary-Iteaavrer
Mrs. Henry Hunter, Asst. Sec.-Treas.
B. Hubert Boyd J- B. Hart T. H. Copeland
J. P. Prather T. D. Copeland J. W. Finney, Sr.
W. W. Harris J. Sloan Todd R. H. McGee
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