Beneficiary Features of American Trade Unions

ies in the fact that in the case of insurance a signed contract known as a policy is given to the insured, while in the case of a benefit no policy is issued. This difference

and are regularly employed. The highly important r?le which insurance systems have played in the formation and working of these unions and the gene

omotive Engineers, the Order of Railway Conductors, the Brotherhood of Locomotive Firemen, the Brotherhood of Railroad Trainmen, the Order of Railroad Telegrap

the original constitution, foremen and machinists as well as engineers were admitted; but since February 23, 1864, membership has been restricted to locomotive engineers.[11] The Brotherhood was prosperous from the outset,

d the assessments prior to the Cincinnati convention of October, 1867. This convention ordered all assessments paid at once, and on December 2, 1867, $1212.40 was paid over to the chairman of the board of trustees. This was the nucleus of a fund which reached $10,787.63 on March 1, 1871. On account of charges of mismanagement and the slow growth of the fund repeated efforts

of claims paid, $31,920; average amount of each claim, $1520.09; cost per member, $19. At Baltimore, on October 21,1869, by-laws were adopted providing for assessments of $1 per member for each death, and 50 cents for each case of total

ary, 1890, the association numbered about 8000, and on January 1, 1897, it had increased to 18,000. During the twenty-five years of voluntary insurance $3,122,-669.61 was paid in death and disability benefits, and at the close of 1896 this t

rder of Railway Conductors was organized at Columbus, Ohio, on December 15, 1868.[16] For a period of twenty-two years the organization grew slowly against much opposition. From 1877 to 1890 the Order was exclusively beneficiary, and many of its members withdrew to organize the "Grand International Brotherhood of Railway Conductors of America." In 1890 the Natio

and the amount thus collected constituted the "benefit" paid.[17] At the first annual session held in Chicago in June, 1869, efforts were made to create a permanent insurance fund, but without result; and at the second session held in Buffal

epartment," and said: "A complete revision of its laws can no longer be postponed, if we keep it from going to pieces altogether."[20] In 1882 the insurance laws were amended, and an immediate improvement began in the condition of the department. In 1891 the insurance became compulsory. On April 1, 1891, there were 3950 members and the outstanding risks amounted to $9,875,000, while on April 1, 1893, there were 11,436 members, carrying insuranc

th was retarded by the great strike of 1877, by the opposition of the International Firemen's Union, by the difficulties with the Knights of Labor in 1885, and by the Chicago, Burlington and Quincy strike of 1888. These checks were only temporary, howev

and regained sufficient strength to withstand the financial and industrial depression of 1893-1896. In 1897 Grand Master Sargent said, "The condition of the beneficiary department excels by far any previous period in the history of the Brotherhood-so far as prompt payment of claims and the dispat

service, the more appropriate name of Brotherhood of Railroad Trainmen was adopted." The membership consists of conductors, brakemen, train baggagemen, train flagmen, yard masters, yard foremen and switchmen. On August 31, 1893, the membership

ed rapidly, but with the financial and industrial depression the membership decreased, so that in May, 1895, it showed a reduction from 28,000 to about 18,000. The membership of the beneficiary department at t

telegrapher, line repairer, leverman, or interlocker, including all employees connected with operation of signal towers and interlocking plants."[26] By April 30, 1893, the membership numbered 17,780.

f "Mutual Life Insurance Association of North America." The insurance failed entirely to attract any considerable part of the membership, and up to July, 1890, the total amount paid was only $2430.05.[28] In 1896 the Grand Division appointed a committee to devise a plan for a system of insurance. The plan reported was submitted to referendum vote in December, 1897, and became operative on Ja

that the purposes of the organization were "to wage war against discrimination made by arbitrary employers; to organize for benevolent purposes; to amicably adjust labor disputes by arbitration; and for mutual aid to its members."[30] The Association was forced by the def

nding of the Association in 1894 the insurance department was successful. In 1901 the Union without a dissenting vote adopted a compulsory system of insurance. During 1902 $6,151,200 of insurance was issued, during 19

rship of 600, united with the Brotherhood of Railway Section Foremen, an organization with 400 members. The new union took the name of Brotherhood of Railway Trackmen of North America. Prior to 1898 the Brotherhood was almost exclusively a fraternal insurance society, but in that year collective bargaining was added to its functions. In 1903 the organization became

surance and from the uncertainty in the number of assessments levied each year, the St. Louis convention of 1896 reverted to a system of optional insurance. Previous to the adoption of this plan the Order had paid death

s so as (a) to secure their rights as Government employees and to promote the welfare of every member, and (b) to found the United States Letter Carriers' Mutual Benefit Association."[33] The first annual session appointed a committee to draw up a plan for an insurance system. The report was published in January, 1891, and was considered by the National Association at its second annual ses

enefit associations for the payment of death and disability insurance. The growth of the national benefit department was thus retarded, and at the tenth annual session in October, 1877, subordinate divisions were prohibited from maintaining "mutual benefit societies."[36] The national organizations, on the other hand, do not furnish accident insurance, but leave this function to the local bodies. In the formation of this policy, also, the Conductors took the initiative

bility in the Conductors', the Firemen's, and the Trainmen's beneficiary departments during recent years shows the high importance of disability insurance to the men engaged in the more hazardous occupations. The disability claims paid among the Firemen for the eleven years from 1894 to 1904 were 24.5 per cent. of the

, 11.8 per cent.; while among the Firemen the percentages for the biennial terms 1894-1896 and 1902-1904 were 32.9 per cent. and 21.4 per cent., respectively. The claim statistics of the Trainmen show the same tendency althou

DISABILI

Per Cent. of Disability Claims. Disabil

Disab

893-1894 265

6 274 46

8 363 63

0 440 55

2 523 81

04 688

94-1896 29

8 349 11

0 488 17

2 655 18

4 857 23

8] 1886 75

77 42

45 59

52 69

75 116

64 123

70 145

72 201

04 138

12 147

54 159

40 160

58 165

03 211

98 205

07 231

70 249

88 305

49 374

stricter definition of disability and to better administration. The number of dis

laims resulting from accidents still farther

LAIMS IN BROTHERHOOD O

Causes Percentage of Claims from Natural Causes. Percentage of Cl

26 2,610 16.7

3 4,522 31.

7,322 26-1

claims from accidental causes-including both disability and death-was 73-2/3 of the whole number of claims paid, while the percentage from natural causes was only 26-1/2. In other words, these statistics show that t

artial disability is "the loss of one hand or one foot or any injury preventing the performance of one or more important daily duties pertaining to a regular occupation." In other words, to secure the indemnity for total disability, the insured must be disabled from performing any regular labor whatever. In the railway organizations total disability is so defined as to cover inability of the insured to continue in his position. Secondly, the disability insurance offered by the regular insurance companies is joined with accident insurance affording a weekly indemnity during the period of illness due to accident. The railway employee, if he insures against totally disabling

3, 1871: "The Baltimore convention, 1869, adopted a disability clause, the Nashville, Tenn., convention amended it, and the Toronto, Canada, convention, 1871, repealed it." At St. Louis, 1872, the Brotherhood formed a separate association, known as the "Total Disability Insurance Association," for furnishing insurance against disability to members. An entrance fee of $2 was required and the assessment was fixed at $1.[42] In 1876 the convention dissolved the Total Disability Insurance Association, and the Engineers did not succeed in establishing a satisfactory system of disability insurance until 1884, when the prosperous condition of the association enabled the convention to carry out its long-cherished plan and to make provision for the payment of the same benefit in c

it has been regarded as an essential element in railway insurance systems. Hence the Trainmen in 1883, the Telegraphers in 1887, and the Switchmen in 1886, in their first constitutions, and the Trackmen in 1893, made the disability insurance equal to that paid in case of death. All of the railway organizations, except the Telegraphers, follow this policy at the present time. The Telegraphers have not paid a dis

rovision for the large number of carriers whom old age prevented from doing the regular amount of work.[47] Under the original plan, which went into effect January 1, 1903, the Association issued retirement certificates to members in the sums of $500, $400, $300 and $200 at monthly premiums of $6.70, $5.35, $4.00 and $2.70, respectively. On retirement, after having paid thirty annual premiums, or their equivalent, the beneficiary was entitled to receive annually t

e years of service. For five years' membership such a member received fifteen per cent.; for ten years', thirty per cent.; for fifteen years', forty-five per cent.; for twenty years', sixty per cent.; for twenty-five years', seventy-five per cent. Any member of not less than five years' standing might, after ninety days' notice to the chief clerk, withdraw from the Association; and in such event he became entitled to receive seventy-five

eptember 1, 1903, only eighteen retirement certificates had been issued, of which thirteen were for $500, two for $300, and three for $200. The average age at entrance was fifty-three and the average length of service, twenty-two years. The total receipts of the retirement fund were only $390.90.[52] On September 1, 1905, the total number of certificates issued had reached twenty-five, with only

s, but those duly qualified may hold both annuity and disability certificates. Any member of the National Association of Letter Carriers may become an "annuity member;" but only those under sixty-five years of age and in good physical conditio

ithdraw at any time prior to reaching the annuity, and in that event all payments are to be returned, with interest. Members may receive loans to the amount of ninety-five per cent. of the sum accredited to them in the retirement fund, provided this

annuity per $100 for various ages accord

00 ANNUITY IN THE

Age at which

45 50 5

.83 $ 3.19 $ 2.16 $

6.63 4.05 2.5

.06 5.37 3.

3 7.79

4.62

1

condly, the new system provides that a member may retire five years after entrance, or thereafter at any successive period of fi

become disabled permanently by "tuberculosis, paralysis, locomotor ataxia, dropsy, cancer, diabetes, sciatica, chronic rheumatism, chronic kidney or mental disease, or any other chronic disease," not especially named in the constitution, that may, in the judgment of the board o

accept 40 per cent. of their regular salary, while retired, and that they pay the remaining 60 per cent. to the senior substitute in their office. Under the conditions of this plan, the applicant for retirement must submit himself to the board of examiners, who shall, after a physical examination by the physician of the board, determine his eligibility. The results of this plan would be two-fold: first, to relieve t

of trustees.[62] During the early years disability claims were often presented through subordinate officials, who were either unable to interpret the laws aright, or were unwilling to assume the responsibility of pronouncing the claims illegal. The Engineers, after a period of thirty-two years, in 1898 adopted a satisfactory definition of total disability: "Any member of this Association losing by amputation a hand at or above the wrist joint; a foot at or above the ankle joint; or sustaining the tota

one dollar per member upon each death or case of disability, while the Firemen paid fifty cents upon each death or case of disability.[65] The membership was small and the assessments were largely regarded as benevolent contributions. This phase is well illustrated by the early history of the benefit among the Conductors. The first benefit, paid in December, 1871, amounted to $48. During the first thirteen years of the department's activity 19 claims were paid. The last was $70, and the average amount paid was $88.[66] This system continued until 1881-1884, when a general revision of co

1883, 1887 and 1886, respectively, and the Trackmen (Maintenance-of-Way Employees) in 1892 fixed the amount paid at the definite sums of $300, $1000, $500 and $1000, respectively.[67] The Letter Carriers, although organized after the railway unions had fixed at a definite sum the amount of insurance to be paid, for several years paid only a sum equivalen

a smaller amount. As early as 1886 the Firemen provided that only members under forty-five years of age might take insurance,[70] and in 1887 the Telegraphers adopted an age limit of fifty years.[71] The Conductors, under the constitution of 1890, provided that any member between the ages of fifteen and fifty might take $2500 of insurance against death or disability, and any member between the ages of fifty and sixty might take $

pay $1 monthly per $1000 of insurance; those from thirty-five to forty, $1.25; from forty to fifty, $1.50. Insurance rates in the Letter Carriers' Mutual Benefit Department have, with the exception of the first year of operati

ations as to the amount and rate of

Classes. Amount of

Under 40 y

under 4

under 5

Under 35

under 4

o 50

nder 45 y

d ove

age restri

s 18 and un

under

nd 6

o age restr

loyees 18 and under 45

to 55 at graded r

chmen's organizations the young men contribute materially to the cost of insuring the old men. This charge is not so heavy as might appear at first sight, since in both organizations many members withdraw when they are promoted to higher positions in the service. In grading the amount of insurance offered according

f claims. The Conductors took the initiative by providing in the constitution of 1881 that the grand secretary-treasurer, on paying a claim, should levy the regular assessment upon each member to be held in reserve to pay the next claim.[74] This was followed in 1885 by a regulatio

aside for insurance purposes, and that amount has been determined only by the long experience of the organizations. Again, the insurance must be in an amount which accords with the idea

inimum and the maximum amounts

inimum Amount.

Locomotive Engi

lway Conduct

Locomotive Fi

f Railroad Tr

road Telegrap

n's Unio

of-Way Emplo

s' Association

3; and the Switchmen to $1200 in 1901. While the Engineers, the Conductors, and the Firemen offer insurance in relatively large amounts, only a small per cent. of the membership take out certificates for the larger sums. On June 30, 1904, of the 54,434 Firemen, 43,228 carried $1500 certificates, while only 717 carried $2000 certificates, and 824, $3000 certifi cates.[77] On November 1, 1904, of the 41,124 Engineers, 24,187 carried $1500, and 10,337 and 1602 carried $3000 and $4500, respectively.[78] In each of these organizations the $1500 certifi

men next adopted a similar feature in 1888. Although the Engineers and the Conductors did not enforce compulsory insurance until 1890 and 1891, respectively, during the twenty years preceding its adoption frequent proposals were made by subordinate divisions of both these organizations for the adoption of such an arrangement. On different occasions the national conventions considered the wisdom of such proposals, wei

in on October 1, 1901, and the Telegraphers on January 1, 1898.

d and readopted. The opposition to it was due in a large measure to uncertainty as to the number of yearly assessments necessary and also to the fact that many of the members carried insurance in old-line companies.[81] The Switchmen's insurance departmen

e Firemen provides that the non-beneficiary member shall be entitled to all the privileges of the subordinate lodge, but shall not take part in the national convention or in any way participate in the benefits and privileges of t

compulsory insurance appears to have caused an increase in the membership of the brotherhoods. On January 1, 1890, the date on which compulsory insurance became operative, the membership of the Brotherhood of Locomotive Engineers numbered 7408; on January 1, 1897, it had increased to 18,739; and in May, 1904, to 46,400.[83] On January 1, 1891, the date on which compulsory insurance was inaugurated, the membership of the Order

reatly in the different organizations, a

ear Ending. Cost of Ins

ecember 31,

December 31

une 30, 1

ecember 31

s December

ecember 31,

oyees December 31, 1903