tive determination of the concrete facts that are pertinent to intelligent consideration of the old age pension question in this state is clearly the first step toward a scientific solution of the problem. The investigation of the State Commission is designed to supply the needed statistical information.

In 1905 a report on old age pensions was issued by the State Bureau of Statistics of Labor, under the direction of the former Chief of the Bureau, Mr. Charles Felton Pidgin. The statistical matter presented in this report was, however, of dubious character. The statistics purported to show that the establishment of a pension system, providing $260 a year for all persons over sixty-five years of age who made application for such pension, would save the state about $2,000,000 a year. Mr. Pidgin arrived at this startling conclusion by calculating the net cost of the pension scheme on two assumptions: first, that only one person in five of pensionable age would apply for a pension; second, that the entire expenditure for charitable purposes by cities, towns, individuals, and societies would be abolished by the institution of a pension system. The amount required to pay pensions of $260 a year to one-fifth of the population over sixty-five years of age was estimated by Mr. Pidgin to be $7,441,564. The amount expended for charitable purposes by cities, towns, individuals, and societies. was calculated at $9,580,551.51. The following passage from the report states the two assumptions on which the estimate of the cost and the saving of the pension plan is based:*

Now it is not to be assumed that all persons sixty-five years of age or over would ask for the old-age pension. Many such persons are in affluence; others, and a much larger number, are in comfortable circumstances; many others are still able to work and support themselves or contribute to the support of their families; and quite a large number would be unable to obtain such a pension owing to their past manner of living. The experience of foreign countries has shown that not more than one-fifth of the persons beyond the age of sixty or sixty-five apply for the old-age pensions. As has been shown, the amount required to pay an annual pension of $260 to one-fifth of the persons in the State

* Annual Report of the Bureau of Statistics of Labor, 1905, pp. 143-144.

sixty-five years of age or over is $2,138,987.51 less than was contributed in the year 1900 by the cities and towns and by individuals and corporations for charitable purposes. If this plan were adopted, cities, towns, individuals, and corporate societies would be free from collecting and distributing money for charitable purposes.

The assumption that only one person in five of eligible age would apply for a pension of $260 a year is palpably grotesque. There is nothing in the experience of other countries to warrant such an assumption. In New South Wales, for example, the percentage of the population over sixty-five years of age in receipt of pensions is about 45 per cent. There are 21,685 pensioners out of 47,426 persons of eligible age. In Great Britain the percentage of persons qualifying for pensions under the new pension act is about the same as in New South Wales,45 per cent. There are 596,038 pensioners out of a population over seventy years of age of approximately 1,270,000. It should be remembered that in Great Britain, as in New South Wales, persons with incomes of more than a specified small amount, and also certain classes, such as criminals and paupers, are excluded from the benefits of the pension plan. If a universal pension, such as Mr. Pidgin proposed, were adopted in this state, it is reasonably certain that a large proportion of the population of eligible age would apply for pensions. If, however, only one-half of the age population applied, or if one-half were disqualified by various conditions of eligibility as in other countries, the cost would, nevertheless, exceed $20,000,000 a year. The number of persons sixty-five years and over in the state is given in the census returns of 1905 as 161,918. Onehalf of that number is roundly 81,000. Pensions of $260 a year for 81,000 persons would cost $21,060,000 annually.

The other assumption made by Mr. Pidgin, that the total expenditure for poor-relief by cities, towns, individuals, and societies would be abolished by the adoption of a pension scheme, is manifestly extravagant. The theory is that, if you provide age pensions for all persons over sixty-five years of age, almshouses and almsgiving will become superfluous. This

theory overlooks the patent fact that poor-relief is not granted exclusively to the aged poor. A state cannot get rid of all its juvenile and adult dependents by merely pensioning the aged population.

As to the actual effect of a pension system on expenditure for poor-relief, the experience of European countries which have tried the pension policy shows that such expenditure tends to increase, rather than decline, after the pension system is established. The Preliminary Report of the Massachusetts Commission gives an analysis of the experience of Denmark and the Australasian Colonies of Great Britain, which illustrates this tendency. The statistics of the operation of the Danish system disclosed these striking facts:

1. The number of recipients of old age relief has increased rapidly at the rate of 4 to 5 per cent. annually, while the population has grown only at the rate of one-half to 1 per cent. The number in 1893 was 43,826; in 1906, 68,831.

2. The expenditure has risen in even greater proportion. In 1893 the total was 2,963,086 kroner ($741,000); in 1906, 7,666,000 kroner ($1,914,000).

3. At the same time the expenditure for ordinary poor-relief has also increased in recent years. When the old age relief system was established, it was expected that the cost of poorrelief would decrease to some extent, if not proportionately to the grant of old age relief. For a few-years this expectation was realized. Since 1896, however, the amount expended for poor-relief has steadily increased, and in 1905 the amount thus expended exceeded the expenditure for 1890 by nearly 400,000 kroner ($100,000).

A survey of the figures relating to the operation of the New Zealand act since its passage shows that the number of pensioners has increased steadily, but not with notable rapidity; that the amount paid in pensions has increased greatly, being in 1908 nearly three times as large as in 1899. The latter fact is due, in large measure, to the increase of the amount of the pension from £18 to £26 a year in 1905. The effect of the pension act on expenditure for poor relief has been to reduce some

what the amount spent on outdoor relief. The expenditure for indoor relief, however, has increased notably since the act went into operation. Thus the total expenditure for poorrelief has risen considerably.

Concerning Victoria, Mr. H. W. Meakin, treasurer of the colony, states: "The introduction of the old age pension system in this State has had no appreciable effect on the charitable institutions."

The Australian Royal Commission of 1905 drew the following conclusions regarding the relation of a pension system to poor-relief in the colonies:

The amounts voted for charities by the governments of New South Wales and Victoria, where old age pension acts are in existence, have not been appreciably reduced in consequence of the passing of these acts. It has been shown that in numerous cases the granting of pensions, with the consequent removal of inmates from asylums, has been exceedingly harmful, and that many of them have drifted into most undesirable quarters and suffered neglect and privation."

These facts completely discredit the popular notion that the adoption of a pension system would mean "the passing of the poorhouse." It seems clear that, whatever benefits a pension system might or might not bring, it could not be expected to do away with almshouses and almsgiving. That, at least, is the lesson of foreign experience with pension systems.

The statistical investigation which the Commission has projected is designed, primarily, to show in a conclusive way the cost of applying in Massachusetts the various schemes of old age pensions proposed or tried in other countries, and, secondarily, to exhibit in considerable detail the financial, industrial, and social conditions of the aged population. For the purpose of such an investigation the population over sixty-five years of age may be divided conveniently into several classes.

First, the criminal and the insane. It is necessary to know the number of persons of pensionable age in correctional institutions and in hospitals and asylums for the insane, in order to determine the scope and the cost of any pension plan. In most schemes ad

vocated or adopted, the members of this class would be debarred from the receipt of a pension. Furthermore, the criminal and the insane would still have to be maintained in institutions, even if a pension system were instituted. This class, therefore, does not require detailed investigation for the purposes of an investigation relating to old age pensions. The number of persons in this class must, however, be definitely determined in order to get at the proportion of the population of eligible age that would come under the provisions of a pension plan.

Second, the institutional poor. It is necessary to determine the number of persons of pensionable age in public and private charitable institutions, at a given date, and also the number admitted during the period of one year, as well as the number of deaths, discharges, and transfers during the year.

An investigation covering at least a period of twelve months is needed to show the full extent and movement of this institutional population. A mere "day count" would give only a partial indication of the burden imposed by this dependent class, and would afford an altogether inadequate basis for calculating the scope and the cost of any pension system. Such a calculation must be made on a year basis. It is necessary to know not only how many persons might come under the provisions of a pension scheme at any given date, but how many persons must be provided for in an operating year.

The particular information needed concerning this institutional population relates to the total cost of maintaining this class; the percentage of aliens, invalids, insane, criminals, and the like in this class, who would either be debarred from the receipt of a pension or would necessarily remain in institutions even if a pension scheme were adopted; the percentage of persons in this class who would be enabled by the grant of a pension to withdraw from institutional residence; the reduction, if any, in expenditure for institutional dependents to be expected from the adoption of a pension plan.

Third, the non-institutional poor. The number of persons of pensionable age who receive outdoor relief from public and