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The Swope Plan 1.

All industrial and commercial companies (including subsidiaries) with 50 or more employees, and doing an interstate business, may orm a trade association which shall be under the super!ision o a ederal body re erred to later. ". These trade associations may outline trade practices, business ethics, methods o standard accounting and cost practice, standard orms o balance sheet and earnings statement, etc., and may collect and distribute in ormation on !olume o business transacted, in!entories o merchandise on hand, simpli ication and standardi#ation o products, stabili#ation o prices, and all matters which may arise rom time to time relating to the growth and de!elopment o industry and commerce in order to promote stabili#ation o employment and gi!e the best ser!ice to the public. $uch o this sort o e%change o in ormation and data is already being carried on by trade associations now in e%istence. A great deal more !aluable wor& o this character is possible. '. The public interest shall be protected by the super!ision o companies and trade associations by the (ederal Trade )ommission or by a bureau o the *epartment o )ommerce or by some ederal super!isory body specially constituted.

+. All companies within the scope o this plan shall be re,uired to adopt standard accounting and cost systems and standardi#ed orms o balance sheet and earnings statement. These systems and orms may di er or the di erent industries, but will ollow a uni orm plan or each industry as adopted by the trade association and appro!ed by the ederal super!isory body.

5. All companies with participants or stoc&holders numbering "5 or more, and li!ing in more than one state, shall send to its participants or stoc&holders and to the super!isory body at least once each ,uarter a statement o their business and earnings in the prescribed orm. At least once each year they shall send to the participants or stoc&holders and to the super!isory body a complete balance sheet and earnings statement in the prescribed orm. -n this way the owners will be &ept in ormed o the conditions o the business in such detail that there may be no criticism o irregularity or in re,uency o statements or methods o presentation. .. The ederal super!isory body shall cooperate with the -nternal /e!enue *epartment and the trade associations in de!eloping or each industry standardi#ed orms o balance sheet and income statement, depending upon the character o the business, or the purpose o reconciling methods o reporting assets and income with the basis o !alues and income calculated or ederal ta% purposes. 0. All o the companies o the character described herein may immediately adopt the pro!isions o this plan but shall be re,uired to do so within ' years unless the time is e%tended by the ederal super!isory body. Similar companies ormed a ter the plan becomes e ecti!e may come in at once but shall be re,uired to come in be ore the e%piration o ' years rom the date o their organi#ation unless the time is e%tended by the ederal super!isory body. 1. (or the protection o employees, the ollowing plans shall be adopted by all o these companies2

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(A) A 34/5$678S )4$P67SAT-47 A)T, which is part o the legislation necessary under this plan, shall, a ter care ul study, be modeled a ter the best eatures o the laws which ha!e been enacted by the se!eral states. (9) :-(6 A7* *-SA9-:-T; -7S</A7)6. All employees o companies included in this plan may, a ter two years8 ser!ice with such companies, and shall, be ore the e%piration o i!e years o ser!ice, be co!ered by li e and disability insurance. (1) The orm o policy shall be determined by the association o which the )ompany is a member and appro!ed by the ederal super!isory body. The policy will belong to the employee and may be retained by him and &ept in ull orce when he changes his employment or otherwise discontinues particular ser!ice as outlined later. (") The ace !alue o a policy shall be or an amount appro%imately e,ual to one year8s pay, but not more than =5,000, with the e%ception that the employee may, i he desires, increase at his own cost the amount o insurance carried, sub>ect to the appro!al o the 9oard o Administrators, later de ined. (') The cost o this li e and disability insurance shall be paid one hal by the employee and one?hal by the company or which he wor&s, with the ollowing e%ception2 the company8s cost shall be determined on the basis o premiums at actual age o employees less than '5 years old and on the basis o '5 years o age or all employees '5 or o!er and shall be a ace !alue o appro%imately one?hal a year8s pay but limited to a ma%imum premium or =",500 o insurance. An employee ta&ing out insurance at age '5 or o!er will pay the e%cess premium o!er the amount based upon age '5. This will remo!e the necessity or restriction against engaging employees or trans erring them rom one

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company to another because o ad!anced age, as it will place no undue burden o high premiums upon the company. (+) The li e and disability insurance may be carried by a li e insurance company selected by the trade association and appro!ed by the ederal super!isory body or may be carried by a company organi#ed by the trade association and appro!ed by the ederal super!isory body, or a single company may be ormed to ser!e all associations. (5) The administration o the insurance plan or each company shall be under the direction o a 9oard o Administrators consisting o representati!es, one?hal elected by the employee members. The powers and duties o the 9oard or each company will be to ormulate general rules relating to eligibility o employees, etc., but such rules shall be in consonance with the general plan laid down by the @eneral 9oard o Administration o the trade association o which the company is a member, and appro!ed by the ederal super!isory body. (.) Pro!ision or the continuation o a policy a ter an employee lea!es one company and goes to another in the same association, or goes to a company in another trade associationA continuance o the policy a ter retirement on pensionA pro!isions with regard to bene iciariesA total or partial disabilityA method o payment o premiums by payroll deductions or otherwise, wee&ly, monthly or annually, shall be embodied in the plan ormulated by the trade association, with the appro!al o the ederal super!isory body. (0) - an employee lea!es a company to go with one which is not a member o the trade associationA i he engages in business or himsel A or i he withdraws rom industrial or commercial occupation, he may elect to retain the portion o the policy or which he has

paid, in whole, or in part, by the continued payment o the proportional ull premium costs, or he may recei!e a paid up policy, or be paid the cash surrender !alue or the part or which he has been paying the premiums. The cash surrender !alue o that portion o the policy paid or by the company will be paid to the company which paid the premiums. ()) P67S-47S. All employees o companies included in this plan shall be co!ered by old age pension plans which will be adopted by the trade associations and appro!ed by the ederal super!isory body. The principal pro!isions will be as ollows2 (1) All employees may, a ter two years o ser!ice with a company coming within the scope o this plan, and shall, be ore the e%piration o i!e years o ser!ice, be co!ered by the old age pension plan. (") All employees a ter two years8 ser!ice may, and a ter i!e years8 ser!ice shall be re,uired to, put aside a minimum o one per cent o earnings, but not more than =50 per year, or the pension und. The employee may, i he desires, put aside a larger amount, sub>ect to the appro!al o the 9oard o Administrators. (') The )ompany shall be re,uired to put aside an amount e,ual to the minimum stated abo!e, namely one per cent o earnings o employees, but not more than =50 per year per employee. (+) The abo!e minimum percentage shall be the same or all employees who are less than '5 years o age when payments begin and the minimum percentage or these employees shall remain the same therea ter. The percentage to be set aside by employees coming into the pension plan at '5 years o age or o!er shall be so determined that it will pro!ide a retiring allowance at age 00 the same as though they had begun one per cent payments

at the age o '5. These pro!isions enable employees to go rom one company to another in the same association or to di erent associations at any age with pro!ision or retiring allowances which will be not less than the minimum rate o an employee who entered the pension plan at age '5. (5) The amounts set aside by the employee and the company with interest compounded semiannually at i!e per cent until retirement at age 00, or a typical a!erage employee, would pro!ide an annuity o appro%imately one?hal pay. (.) The administration o the pension plan or each company shall be under the direction o a 9oard o Administrators, consisting o representati!es, one?hal appointed by the management and one hal elected by the employee members. The powers and duties o the 9oard or each company will be to ormulate general rules relating to eligibility o employees, conditions o retirement, etc., but such rules shall be in consonance with the general plan laid down by the @eneral 9oard o Administration o the trade association o which the company is a member, and appro!ed by the ederal super!isory body. (0) The amounts collected rom the employees and the companies shall be placed with the pension trust organi#ed by the association, the management o which shall be under the direction o the @eneral 9oard o Administration re erred to herea ter. -n no case shall such unds be le t under the control o an indi!idual company. (1) The Pension trust shall in!est all unds and place them to the credit o the indi!idual employees, including the income earned by the trust. - an employee goes rom one company to another in the same association, the unds accumulated to his credit shall be continued to his credit with proper record o trans er. - an employee goes to a company in another association, the unds accumulated to his credit shall be trans erred to his

credit in the pension trust o the association to which he goes. - an employee goes to a company which does not come under these pro!isions or which is not a member o a trade associationA goes into business or himsel A or withdraws rom an industrial or commercial occupation, the amount o his payments plus the interest at the a!erage rate earned by the unds shall be gi!en to him. - an employee dies be ore reaching retirement age, his bene iciary will recei!e the amount o his payments plus interest at the a!erage rate earned by the unds. 3hen an employee reaches retirement age, the entire amount accumulated to his credit, including his own payments and those o the company, plus accumulated interest, will be gi!en to him in the orm o an annuity. - an employee goes to a company which does not come under these pro!isions or which is not a member o a trade associationA goes into business or himsel A or withdraws rom industrial or commercial occupation, he may elect to let the amount to his credit (namely, his own payments plus those o the company and the accumulated interest) remain with the pension trust or trans er, i he should return to the employ o any company coming within the pro!isions o this plan. - he does not return to the employ o a company coming under these pro!isions, he may at any time therea ter withdraw the amount o his own payments plus interest at the a!erage rate earned by the unds up to that time. )ompany contributions and accumulated interest credited to employees who die, or or reasons indicated abo!e, recei!e or withdraw their own contributions and interest, shall be returned to the employer or employers who made the contributions. (B) The rules go!erning the payments o pensions on retirement and all other rules go!erning its continuance shall be made by the trade association, appro!ed by the ederal

super!isory body, and obser!ed by the @eneral 9oard o Administration and the 9oards o Administration o the member companies. (*) <76$P:4;$67T -7S</A7)6. All employees on piece wor&, hourly wor& daily, wee&ly, or monthly wor&, with normal pay o =5,000 per year or less (appro%imately =B..15 per wee&) shall be co!ered by unemployment insurance. (1) All such employees may, a ter two years o ser!ice with a company coming within the pro!isions o this plan, and shall, a ter i!e years o ser!ice, be each re,uired to put aside a minimum o one per cent o earnings, but not more than =50 per year or an unemployment insurance und. (") The company shall be re,uired to put aside an amount e,ual to that put aside by the employees, as set orth abo!e, namely one per cent o the earnings o each employee, but not more than =50 per year or each such employee. (') - a company regulari#es and guarantees employment or at least 50 per cent o the normal wage paid each year to such employees, the company assessment or employees co!ered by such guarantee need not be made, but the employees will pay in a minimum o one per cent o earnings, but not more than =50 per year, into a special und or their own bene it. - such an employee lea!es the company, dies or retires on pension, the amount to his credit in the special und plus interest at the a!erage rate earned by the special und, shall be gi!en to him or to his bene iciaries or added to his pension. (+) - a company so plans its wor& that it is able to reduce unemployment, when the amount o such company8s credit in the normal unemployment und is e,ual to but not less than 5 per cent o the normal annual earnings o the employees co!ered, the company

may cease ma&ing payment to the und. 6mployees8 payments will continue. The company will resume payments when its credit in the normal unemployment und alls below 5 per cent o normal annual earnings o the employees co!ered. (5) 3hen the wee&ly payments made rom the und or unemployment bene its amount to " per cent or more o the a!erage wee&ly earnings o participating employees, the company shall declare an unemployment emergency, and normal payments by the employees and the company shall cease. Therea ter all employees o the company (including the highest o icers) recei!ing 50 per cent or more o their a!erage ull?time earnings shall pay 1 per cent o their current earnings to the unemployment und. A similar amount shall be paid into the und by the company. The unemployment emergency shall continue until normal conditions are restored, which shall be determined by the 9oard o Administrators o each company. Thereupon normal payments will be resumed. (.) The main pro!isions or the distribution o the unds shall ollow along these lines, unless modi ied by the 9oard o Administrators as set orth in Section *, paragraph 0 hereo . A certain small percentage o the normal payments o the employees and the company may be considered as a!ailable or helping participating employees in need. A larger percentage o such normal payments may be considered as a!ailable or loans to participating employees in amounts not e%ceeding ="00 each, with or without interest as may be determined by the 9oard. The balance o the unds shall be a!ailable or unemployment payments. <nemployment payments shall begin a ter the irst two wee&s o unemployment and shall amount to appro%imately 50 per cent o the participating employee8s a!erage wee&ly or monthly earnings or ull time, but in no case more than

="0 per wee&. Such payments to indi!idual employees shall continue or no longer than ten wee&s in any twel!e consecuti!e months unless e%tended by the 9oard. 3hen a participating employee is wor&ing part?time because o lac& o wor& and recei!ing less than 50 per cent o his a!erage wee&ly or monthly earnings or ull time, he shall be eligible or payments to be made rom the und, amounting to the di erence between the amount he is recei!ing as wages rom the company and the ma%imum he may be entitled to as outlined abo!e. (0) The custody and in!estment o unds and administration o the unemployment insurance plan or each company shall be under the direction o a 9oard o Administrators consisting o representati!es, one?hal appointed by the management and one?hal elected by the employee members. The powers and duties o the 9oard shall be to ormulate general rules relating to eligibility o employees, the waiting period be ore bene its are paid, amounts o bene its and how long they shall continue in any year, whether loans shall be made in time o unemployment or need, whether a portion o the unds shall be placed at the disposal o the 9oard or relie rom need arising rom causes other than unemployment, etc., but such rules shall be in consonance with the general plan laid down by the @eneral 9oard o Administration o the trade association o which the company is a member, and appro!ed by the ederal super!isory body. (1) - an employee lea!es the company and goes to wor& or another company coming within the pro!isions o this plan, the proportionate amount remaining o his normal contributions, plus interest at the a!erage rate earned by the unds, shall be trans erred to such company and to his credit. - he lea!es or other reasons, dies or retires on pension, the proportionate amount remaining o his normal payment, plus interest at the a!erage

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rate earned by the unds, shall be gi!en to him, or to his bene iciary, or added to his pension. 3hen such employee8s credit is trans erred to another company, or paid to the employee or to his bene iciary under this pro!ision, an e,ual amount shall be paid to the cooperating company. @676/A: A*$-7-ST/AT-47. 6ach trade association will orm a @eneral 9oard o Administration which shall consist o nine members, three to be elected or appointed by the association, three to be elected by the employees o the member companies, and three, representing the public, to be appointed by the ederal super!isory body. The members o the @eneral 9oard, e%cept employee representati!es, shall ser!e without compensation. The employee representati!es shall be paid their regular rates o pay or time de!oted to 9oard wor&, and all members shall be paid tra!eling e%penses, all o which shall be borne by the trade association. The powers and duties o this @eneral 9oard shall be to interpret the li e and disability insurance, pension and unemployment insurance plans adopted by the trade association and appro!ed by the ederal super!isory body, super!ise the indi!idual company 9oards o Administration, orm and direct a pension trust or the custody, in!estment, and disbursements o the pension unds, and in general super!ise and direct all acti!ities connected with li e and disability insurance, pension and unemployment insurance plans.

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