and that of the employer from one-half of 1 per cent to 13 per cent of the wages.

The miners' funds of many mining and metallurgical establishments in the Polish provinces require equal contributions from both parties, and by the proposals of 1905 and 1906 the employer was supposed to contribute one-half as much as the workman. The increase from one-half to two-thirds is somewhat compensated by the extension of the care of injured employees from 6 weeks to 13 weeks. The entire cost of medical treatment of all cases of sickness is paid by the employer. Voluntary members of the sick benefit associations pay all the cost of their insurance.

The financial organization is identical with that proposed in the draft of 1906. The association is required to have two funds, the general (operating) fund and the reserve. The contributions of the employers and employees, the revenue from property and investments, and the miscellaneous revenues are paid into the general fund. The remaining revenues are paid into the reserve. If at the time of the organization of the sick benefit association the establishment has a fine fund, this is turned over to the reserve. In addition annual contributions of from 5 per cent to 10 per cent of the payments of employers and employees, according to the constitution of the association, and also the annual surplus, are turned into the reserve. contributions must be paid until the reserve is equal to the expenses of the association for the preceding two years, and they are renewed as soon as the reserve falls below that level. Voluntary contributions are disposed of according to their designations, in absence of which they go into the reserve.

The

Current expenditures are paid from the operating funds, and the reserve is used when the operating fund is exhausted. The reserve is intended to give stability to the financial status of the association and to save it from insolvency in case of an unexpectedly increased demand, such as an epidemic or a catastrophe involving many employees. It is further provided that when more than one-half of the reserve on hand in the beginning of the year has been spent, a general meeting of the association must be called for the purpose of adjusting the finances, either by increasing the contributions or by reducing the benefits within the limits established by the law, or by other means not contrary to the law.

In case of temporary embarrassment of the fund the employer must advance the necessary money as a noninterest-bearing loan, and if there are several employers united in one association this loan is distributed among them according to their respective contributions. To prevent the association from assuming excessive indebtedness, such loans are limited to a sum equal to the revenues for three

months. All revenues of the association must be used in liquidating this loan before any payments are made into the reserve.

In case permanent increase of dues becomes necessary the association, in general meeting, may raise the contributions of the employers and employees above the normal limits; but the same proportion of 2 to 3 must be preserved, and the employer's share must not exceed 2 per cent of the employee's wages. To be effective this measure requires the approval of the local labor insurance commission. If the sick benefit association should fail to take such steps as are here outlined the commission may order them on its own initiative. What further measures should be taken, if after all this is done the revenues of the association still remain insufficient, is not indicated in the law except in the provisions about the liquidation of the association. The provision of the plan of 1906, that the employer meet the excess of the charges on the association above the regular revenue, has been eliminated from the bill. On the other hand, the reduction of the contributions of the employers and employees below the legal minimum is permitted whenever the reserve exceeds the required limit. Self-government is limited by the rights of the employers and by governmental control and regulations. The organs of administration are the general committee and the board of directors. The members of the general committee are selected by and from the general membership of the association. The number of such committeemen shall not exceed 100, and when several establishments are united in one association the number of committeemen must be proportioned to the number of members in the association. An important provision makes the chairman of the general committee, with a casting vote in case of a tie, a representative of the employer, or of the employers by mutual agreement. The employer and members of the association may appeal from the decisions of the general committee to the local labor insurance commission. The executive work of the association is performed by the board of directors, consisting of an odd number, partly elected by the membership of the association and partly appointed by the employer or employers, for a period of three years; the number of the elected directors exceeding that of the appointed, by one. The appointed directors need not be members of the association, and no qualifications are stated. The elected directors must be members of the association, of either sex, not under 25 years of age, never convicted of crime or for avoidance of military duty, not bankrupt, not under indictment, nor under police supervision, etc. Committeemen and directors may absent themselves from work for the purpose of attending to their official duties and may not be fined or discharged for such absence. The directors may be paid a compensation, if provided by the constitution. The board selects its chairman and vice chairman

from its membership, though the constitution may provide that the chairmanship shall be intrusted to the employer or his representative.

The executive work performed by the board includes the determination of the sickness, the calculation of the earnings of the members, and the granting of all benefits. Its decisions may be appealed to the general committee. It prepares the annual financial report, which must be audited by a special auditing committee and, after approval by the general committee, be forwarded to the local labor insurance commission. The general committee may at any time order an auditing of the finances, begin proceedings for removal of the directors, or bring criminal charges for malfeasance in office. The functions of a treasurer are intrusted to the employer, or where there is more than one to one of the employers selected by them. He keeps the funds, cash as well as securities, and may turn them over for safe deposit to a credit institution, the cost being charged to the association. The funds necessary for current expenses must be invested in government or other bonds designated by the Government. All payments due from employees are retained by the employers from the pay and paid together with the contributions of the employers, and for failure to do so the employers become personally liable for the amount and are fined to the extent of 1 per cent for each month of delay.

If the work of a manufacturing establishment is temporarily suspended the association may also temporarily suspend its activity without going into liquidation, and the property and books of the association are to be kept in accordance with regulations contained in the constitution. If the establishment goes out of business, the association must wind up its affairs, and after all obligations have been paid the assets are to be paid into the imperial funds existing for manufacturing industry and for the mining industry. If one association is joined to another because of decrease in its membership, the assets are transferred to the latter association. One association may be joined to another by the local labor insurance commission if it is unable to straighten out its financial difficulties, or is threatened with insolvency. If the action of an association is judged to be contrary to public peace and order it may be closed and liquidated upon approval of the labor insurance council.

The associations are directly subject to the control of the local labor insurance commissions, which have only a small representation of employers and employees. Above these stands the central labor insurance council..

The local commission has the final decision in the questions of organization of individual or joint associations; it may relieve any employer from the obligations of the law, but an appeal may be taken

to the council. The commission approves the constitutions and may order changes. It keeps a list of associations existing under its jurisdiction. It may order the liquidation of a fund (with the approval of the council) or join one fund to another. It must approve and may order an increase of the contributions over that established by the law. It may hear appeals and cancel any resolution adopted by the general committee of an association. If the general meeting or the board votes a sum of money which seems to the employer (who acts as treasurer) contrary to the law or constitution, he may appeal to the commission within three days.

The auditing and revision of the accounts may be undertaken by the factory inspectors on their own initiative, by orders of the commission or by the civil governor through his agents. The results are reported to the civil governor, who forwards them to the commission, of which he is a member, for consideration and action. When actions contrary to the law or the constitution are discovered, the commission orders the correction of such actions within a specified time, and it may remove the chairman or the board of directors for the same. The civil governor has authority to remove the chairman or the directors, not only for actions contrary to the law or the constitution, but also for acts contrary to public peace and safety, reporting such action to the commission within two weeks. The vacancies thus created must be filled in the same order as the original officers were elected, and if these offices are not filled within a specified time the commission may temporarily intrust the administration of the association to the employer or to a person designated by him.

OLD-AGE AND INVALIDITY INSURANCE.

What has been done in Russia to establish old-age and invalid pensions through legislation is almost exclusively limited to government employees. But in view of the many industrial and commercial enterprises owned and operated by the Russian Government this field is not an inconsiderable one, including as it does most of the railroads, many mines and metallurgical establishments, printing offices, and navy yards. Efforts for protection of employees against old age have also been made by the provincial governments (zemstvos), but these concern professional employees mainly. As against these public employees, workmen in private establishments, except railroad employees, have hardly been provided for at all through legislation, and private efforts are almost as meager.

The earliest pension legislation dates back to the time of Peter the Great, but was intended for navy employees only. It was enacted on January 13 (24), 1720. On June 9 (20), 1728, that legislation was extended to the army. The first pension act referring to industrial employees was promulgated October 28 (November 8), 1738, and

applied to some state factories. All this legislation included only cases due to invalidism or total disability caused by sickness. In reorganizing the system of army pensions, Katherine II was the first to introduce the old-age pension for a definite length of service. On June 22 (July 3), 1797, old-age pensions for workmen employed in the state mines of the Kolyvan-Voskresensk mining district were introduced, to be paid after twenty-five years of service, and on March 9 (21), 1804, these pensions were extended to the employees of the state factories at Olonetz. A general pension law for military and civil employees was promulgated on December 6 (18), 1827, which, with minor modifications, is now in force.

The modern era in the history of pensions on an insurance basis for the industrial employees of the Government begins with the act of March 8 (20), 1861, establishing the miners' fraternities in the state mines and metallurgical establishments, already mentioned in connection with sickness insurance. Their activity was insignificant until the issue of the temporary regulations of April 9 (21), 1881. They were reorganized by the law of May 26 (June 7), 1893. The establishment of pension funds for employees of private railroad companies was ordered by the law of May 30 (June 11), 1888. On June 3 (15), 1894, a law was approved providing for old-age pensions for the employees of the state railroads. This was extended and amended by the law of June 2 (15), 1903 (the same date as the workmen's compensation act for factories, mines, and metallurgical establishments), which is now in force. The employees of the government printing office were provided with a pension fund by the law of June 3 (15), 1894. On January 1 (13), 1900, a pension fund was established for the vast army of employees of the government spirit monopoly. On January 27 (February 9), 1903, a law was passed, and amended on April 18 (March 1), 1903, ordering the establishment of pension funds in all the industrial establishments of the ministry of the navy. In the two largest of these factories in St. Petersburg such funds have existed since 1898.

STATE MINERS' BROTHERHOODS.

The pensions system for employees of the state mining and metallurgical establishments was the first important and systematic effort in Russia to provide old-age and invalid pensions for industrial employees, though the number of workmen affected by it did not exceed 25,000. Its organization dates back to 1861, though the activity was insignificant for twenty years. Before the emancipation of the serfs in 1861, the state mines and metallurgical establishments utilized enforced labor. The law of March 8 (20), 1861, which changed the condition of the labor contract, also ordered the establishment of employees' brotherhoods (tovarishchestvo). The func