prises causing the collapse of the pension funds connected with them kept up the agitation in favor of some legislation. A bill giving the members of the establishment fund preferred claim in case of failure was introduced in 1890 and called forth a series of commission reports, both in the Chamber and in the Senate, during 1891 to 1895. The idea of preference for all the obligations of the fund met with a strong opposition in the Senate, and the Chamber yielded in order to meet the demand for some legislation. The compromise resulted in the law of December 27, 1895.

The act of December 27, 1895, aims to protect the interests of the employees to whom the privilege of establishment pension funds have been extended, in several ways. In the case of bankruptcy or liquidation by order of court or voluntary liquidation or transfer of the establishment the workmen and employees are granted the right to claim that part of the pension fund which has not been utilized in conformity with the by-laws.

Furthermore, the law demands that all sums deducted from the employees' earnings or contributed according to definite agreement by the head of establishment or received from any other sources for the purpose of constituting old-age pensions must be deposited either with the National Old-age Retirement Fund in the form of individual deposits or with the "Caisses des Dépôts et Consignations," unless by special authorization they are deposited in special syndicate funds or establishment funds. These must be authorized by special administrative decree, which regulates the mode of operation of each such special fund. The investment of such funds is also regulated by the law, which limits them to state or state guaranteed securities or obligations of Departments, communes, chambers of commerce of the Credit Foncier, and a few similar securities.

A preferred lien is given on the real estate and personal property of the heads of establishments in case the amounts due had not been deposited with one of the funds designated. The privileged lien covers only the amount due for the current year of the failure or liquidation and the year preceding. In point of rank the privileged lien stands together with the lien for unpaid wages.

The law has introduced a certain measure of order and security in many establishment funds. It has been criticised because it was not sufficiently comprehensive, in that it included only establishment funds in which regular deductions were made from wages or regular definite contributions made by the employers, leaving out the less definite arrangements or promises for pensions, and also because it failed to regulate in any way the rights of workmen in case of change of employer before any pension rights accrued. On the other hand, many large establishments objected to it as an unnecessary interfer

ence with their affairs. It was claimed by many of them that the unnecessary strict provisions for control would lead to the abolition of establishment funds.

Unfortunately recent data are not available to judge of the development of establishment funds during the last 15 years. In an exhaustive work on workmen's pension funds, published in 1906, (") the data of the old investigation of 1895 are used.

But that the establishment funds are still an important feature of French industry may be assumed not only because of the rapid growth in the popularity of the old-age pension principle within that time, but also in view of the care which has been taken not to destroy these institutions when passing the general compulsory old-age insurance law of 1910 (see p. 941).

PROVISIONS OF ACT OF APRIL 5, 1910, CONCERNING ESTABLISHMENT

FUNDS.

Establishment funds may continue to exist and insure their employees under the new law of 1910, provided they are authorized for this purpose by a special decree. Provision must be made in the constitution of each fund for adjustment of the accounts of each employee in the case of his changing his place of employment.

The regular contributions required by the new law from the employers and employees may even be dispensed with in case of the existing establishment funds, provided the pensions payable by them are at least equal to those obtainable under the new law.

Besides the classes of securities allowed to all pension institutions, the establishment funds are granted the privilege of investing their accumulations in first mortgage loans upon the real estate of the establishment up to one-half of the actual value of the real estate.

In addition, the act of 1910 provides for the case of such establishments as will not obtain the necessary authorization. In such case the operation of the fund shall be limited to the fulfillment of obligations already incurred, i. e., the payment of pensions already earned and the continued insurance of persons who are carrying the insurance at the time the law goes into effect, but prohibits further extension of operation. In such cases the contributions of both parties must be adjusted to the required level unless the retirement pensions assumed are higher than those provided by the law. Or the funds may be wound up by transferring the capital values of rights to annuities acquired to the National Old-age Retirement Fund.

a J. Lefort, Les Caisses de Retraites Ouvrièrs, Paris, 1906-7, vol. I.

COMPULSORY OLD-AGE INSURANCE.

SEAMEN'S NATIONAL INVALIDITY FUND.

HISTORY.

The insurance of seamen against old age and invalidity is one of the oldest examples of the application of the principle of compulsory old-age insurance in France. It dates back to the year 1673, when the Seamen's National Invalidity Fund was created. With the exception of a few months during the period of the French Revolution, this fund has continued in operation to the present day. Many changes and reorganizations have taken place since that time, one of the most important being the law of April 11, 1881, which was in force from that date until the enforcement of the present law, enacted July 14, 1908. The purpose of this institution, which is managed by the Ministry of the Marine, is to provide pensions for superannuated seamen and seamen's widows.

In the early part of the nineteenth century this fund had a considerable surplus, but from 1800 to 1814 the Government abstracted no less than 126,000,000 francs ($24,318,000). In 1816, however, 82,442,334 francs ($15,911,370) were restored. After this restoration the fund was again self-supporting, and during the period of 1863 to 1867 it had acquired a sufficient surplus to enable it to turn over 4,500,000 francs ($868,500) to the Government. After this period, however, owing to various laws augmenting the pensions its expenditures were increased to such an extent as to destroy its equilibrium. From 1867 to 1871 it met its obligations by gradually disposing of its invested funds to the extent of 17,685,595 francs ($3,413,320). In 1872 this system of meeting obligations was abandoned, and the State began to supply the deficiencies by voting subsidies. (a)

On November 17, 1885, a law was enacted providing that on and after January 1, 1886, the pensions of seamen in the government service should be paid by the treasurer of the State, thus leaving this fund for seamen in private employ only. This greatly reduced the pension roll of this institution, but nevertheless it remained far below a paying basis and required annual state subsidies amounting to millions of francs. In the beginning of this century this subsidy amounted to about 11,000,000 francs ($2,123,000).

COMPULSORY MEMBERSHIP.

The law of July 14, 1908, provided for a reorganization of the fund. This law provides that every French registered seaman shall be entitled to a pension after 300 months' service and when he

a Les Retraites Ouvrières, par Eugene et Michel Lacombe, Paris, 1905.

reaches the age of 50 years. If he becomes so disabled as to be rendered incapable of serving on board a vessel, he can be pensioned before the age of 50 years. The fact of disability is determined by a commission appointed by a decree of the minister of the marine.

The annual pensions provided by virtue of this law, which are considerably higher than before, are as follows:

ANNUAL PENSIONS PAYABLE BY THE SEAMEN'S NATIONAL INVALIDITY FUND AS PROVIDED BY THE LAW OF JULY 14, 1908.

The widow receives a pension if the husband was drawing a pension at the time of his death and if the marriage took place at least 2 years before the seaman had become entitled to a pension. She is likewise entitled to a pension if the seaman had served 300 months before his death and if the marriage took place at least 2 years before he ceased his sea service. If a widow has no children she must be at least 40 years of age in order to be entitled to a pension. If she has children her age is not considered, even though the children subsequently die. If she is divorced she has no right to a pension. Remarriage forfeits the widow's pension if the second husband is drawing a pension. In case the latter dies or is divorced, her former rights are revived. An annual pension of 100 francs ($19.30) is accorded to widows in need who are not receiving pensions and have not been divorced and whose husbands had died at sea or after 15 years' service, even if these had elapsed before the promulgation of the present law. Widows receive, in addition, a supplementary payment of 4 francs (77.2 cents) per month for each child under 13 years of age.

In case the deceased seaman leaves children of another marriage or illegitimate children, they are entitled to a portion of the widow's pension, not exceeding in the aggregate one-half the regular allowance. If the seaman leaves no widow or if the widow dies or is disqualified, the children under the age of 16 years receive the widow's pension, even if there is but one child. As soon as one of a number of children attains the age of 16 years his share is distributed among those remaining under that age.

A partial pension is granted to registered seamen who have served at least 180 months, of which at least 100 months were spent on board of commercial or fishing vessels, who, in the opinion of the commission, have become incapacitated for sea duty. This pension is equal to one three-hundredth of the minimum rate provided in the above table for each month of service, plus the supplementary allowance of 60 francs ($11.58) per annum. The widows and orphans of these pensioners receive one-half the amount of their pensions.

These partial pensions are not intended to be in addition to the payments received from the National Seamen's Provident Fund (Caisse de Prévoyance des Marins Francais) provided for in the act of December 29, 1905, and described on page 727. Furthermore, all pensioners of the Seamen's Invalidity Fund are excluded from drawing pensions from the Seamen's Provident Fund except in cases where the seaman is 60 years of age and over and is drawing only a secondgrade pension, in which case a supplementary payment may be made. The partial pensions are discontinued whenever a pensioner resumes his sea duty.

Seamen who come under the provisions of this act of July 14, 1908, in high-sea navigation or fishing are required to contribute 5 per cent of their wages toward this fund. This is an increase of 2 per cent over the contributions required under the old law. Certain classes of seamen in coastwise trade and coast fishing pay fixed monthly dues, which serve as a limit for the dues of those of the same grade who contribute 5 per cent of their wages.

These fixed contributions are as follows:

CONTRIBUTIONS OF CERTAIN CLASSES OF SEAMEN WHO PAY FIXED MONTHLY DUES TO THE SEAMEN'S NATIONAL INVALIDITY FUND.

Other officers.

Masters and officers, second class, in coast wise trade, marine engineers of second class, and pilots..

.96

.87

Apprentices..

Cabin boys..