New-York tribune., 1886-03-08
PAILROID LIFE INSURANCE.
PLAN PROPOSED BY THE PENNSYLVANIA

THE COMPULSORY FEATURES REMoYED-BENEFlT
TO THE EMPLOYEES.
For some time great corporations have seen
pavs them to insure themselves against loss by
fire. Now the Pennsylvania Railroad Company has
gone into the OF nsurng the lives or lts EN-
poyes The scheme has been in process Of Introduction
for nearly two months. In brief the plan is as fol-
lows;
The 40 600 men in the employ OF the company aIe
divided into five classes according to the amount Of
salary paid them The first class includes oil below $33
n month second class from so to $50 month; thlrd
from 900 to $50 fourth from $50 to $lOO and ffth all
above SlOO man in the first class pays 70 cents a
month into the fund. lie is entitled to 70 cents day II
disabled by sickness accident while at his work If
he Is killed by accident while in tho discharge of bis duty
to the Pennsylvania Company his heirs receive 5000 IL
dies from any other causes, natural or accidental
they receive $3.50 The latter insurance can be carried
after leaving the cOmpanys service The other classes
arc multpes OF these in the order given That Is the
sccond class. who pay 81 30 month"; get $1,000 II Killed
by accident on the road etc while the third class pay
80 25 month"; and so in proportion. All persons now
in the employ of the company OF whatever age or phys
cal condition eligible to the benefits OF the Insurance.
but il is not compulsory. 1t was ~ first made compu-
sorry With all who should eater the service alter the
scheme went into effect Applicants hal to De under
ceraiu age and DO declared sound by Of tho COM
papy's physicians after thorough physical cxamna.
ton Those not ftto insured were not to be ta ken
into the service.
Tho advantages OF this arran ngement TO the company
were obvious It was also undoubtedly good thing FOR
some classes Of the employees or less Of an i'm
position upon others In the fest place the company Is
secure against all suits damages from those who 90
into the scheme Each man VINO takes out policy must
give q pledge that the company shall not be sued ID
case Of death or injury by an aeciueh1' anu
before ho can get his allowance OF
his heirs can get their money release
at ha piy %
second place the cOmpulslOl Gnecing uc" men WOAlu
raise the standard OF the service IN low years 10
grade The Of the employees would be u!lru WIN
youug healtbIul men. TArdly,t 1t prevents any lrduu
Tor as the taken ont OF the salaries aud
the benefits regularly entered on the pay roll there
viii be chance for CrJOkedness II VIII oe lupohSIoIe
Tor tsnbled clerk 10 draw both his salary and his In
suraucc money or IN any way beat tho company
10 the and sicky now in the service tho adydh-
t-cs are great as tue rates much lower nan they
,od ,et ftom any reputable insurance company. The
same is true OF engine men ana trdh'hGh III Iue
service, whose work Is hazardous 10 IS also gOOd
thing for the reckless careless aud gn0rah VINO ncyer
would unless compelled to do So Tor clcrEs
rates are excessive This castlrOn uniformity Is the
feature against which the greatest opposition was le
yc.opcd. About thirt OF ihe Sompany einPto(}eS P(}
have scnifcd their intention OF taking out p0lcles
The Brotherhood Of Locomotive Engineers nave hileIo
been hoste 10 H. ana ths, WIN vigorous oppu..,O 10
,coprd IN other quarters has led the company TO WIN
draw the compulsory clause affecting new men. Ihs
m name strips the scheme OF cvtIy IedIutv Vi coI &
sion IA II has always been understood, Notwithstanding
the M .reprr-cuaOns OF some newspapers. that II was
s ia name only, because the exercise or absolute free
make N losing transaction. All the old aud scky men,
the bad risks" would into lt because the rates are
lower than they could get from regular company
white nIl the good r.ks" would stay ont, Iuls would
comuci the giving up o the plan, AMI the Peun,yya1l1
utruld Company gives Up anything wnirh II mas
fully determined To pu through. open comp lsIOh ma
been gwen and wisely, because men naturally resist
nuvthug OF mat KIND Nothing easier. however thtu
10 award position 70 tha Ohe ot the score or
two OF applicants VINO signifies hi willingness 10 insure
with the company. while t Il distinctly understood that
there Il no coupllsiOu whatever In the matter IN
the snmo way n wa. announced from tho first by the
cOmpauy that while old employees were not to be coeced
vet whenever 70 became necessary TO teduco the Ioce
preference would b. given 70 those who had Insured
ih.tusslyes II wOuln't take many " reductions OF
Kind 10 bring every man who wahol 10 stay on Io
road INTO the loid -, . ---,-,..- a..
ms to be- expected. OF course, that In working the
scheme will be gradually improved. aud the "bhoNiOus
features removed A. the average monthly assessment
viii be- ~ 80; tho total income when All the mon are
,uaured VIII reach ST2OOuO with these iSures
Insurance experts have calculated that the p"ut7 Will
he something enormous. The company. however, say
tc that the expense OF starting the scheme
s great and that when this paid OF all profits VIII be
turned into indemnity fund and rates reduced ac
curdiugiy