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Re: (erielack) Book Review -- Mott



Ron,

> Their typical employee in the example averaged $60 per month in salary and 
> had 30 years service. This equalled $18 per month for his pension.

That sounds much better (data-wise) than the $7/day speculation earlier in 
the thread. If one applied those kinds of rates to the inflation lookups, it 
paints a very diferent story than the common mythology.

It is hard to fathom the numbers involved here -- but consider the labor 
agitation and strikes of the period that led men to fight for better pay --  
even losing those starvation wages for the length of the strike.

> The article goes on to mention that the DL&W set aside $50,000 for the 
> first year to cover all their pensioners, "an amount as large in 
> proportion to the number of employees as has been set aside by any large 
> corporation."

Much of Labor considered pensions a scam at the time -- alng with proposals 
for plans like today's Social Security -- the general figuring was that 
workers should receive the money immediately rather than ever defer wages, 
which could easily be stolen. Railroad plans like the DL&Ws were real 
break-throughs. What is funny (and actually sad in its ignorance) is today's 
notion that workers **should** have had control over savings -- because at 
starvation wages -- there would be none.

Pensions and insurance plans were both innovations that railroads such as 
the DL&W and their labor organizations pioneered, and is yet another 
fascinating subject of a fascinating business.

Cheers,
Jim Guthrie
ELHS #1296 


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