Under such conditions the system has served the dual purpose 

 of affording a mandatory savings fund and true social in- 

 surance. 



An inspection of the sums paid for gratuities and pensions 

 shows that the contributions received from the subscribers 

 were in very small proportion to the amounts involved,' and 

 the Pension Board is of the opinion that if other provision 

 can be made, these payments should not be taken from the 

 joint accumulated contributions of the subscribers but rather 

 from the income of an endowment fund established for this 

 purpose, as it is apparent that the expenditure of any con- 

 siderable amount for such purpose during the early history 

 of the plan may render it difficult to meet the future obliga- 

 tions which have been assumed by the acceptance of regular 

 contributions from the subscribing employees. 



The Pension Board would therefore recommend that solici- 

 tations be made for the creation of a substantial endow- 

 ment fund. If such a fund should be raised it would be 

 advisable to amend the rules so as to limit the expenditure 

 of its income, for a period, to the payment, according to the 

 rules, of gratuities and retirements allowed subscribers who 

 will not have contributed a sum proportionate to the obliga- 

 tion. * 



Respectfully submitted, 



Felix M. Warburg 



Chairman 



February 1, 1915 



