The Washington times., 1906-07-15
FREE INSURANCE
FOR EMPLOYEES
American Tobacco Company
InaugurateS Generous
Benefit System.
YEARS WAGES AT DEATH
ALI of Corporations 10000 Workers
Entitled to Bounty With
out Cost.

The American Tobacco Company
which is the largest tobacco company
IN the world, has issued a formal no
tice 10 its great army OF employees, 10
Gated ia every State In the Union that
hereafter il viii pay a death benefit to
the beneficiary OF any person in its ser
vice who draws not more than $50
week in wages. This notice affects about
$4,000 men and women. The notice,
copy of which has been mailed 10
each employe, provides as follows.
Upon proof of the death of any per
son In the employment of this company
who shall have been continuously In its
service for at least one year preceding
his or her death. and whose wages DO
not at that date exceed $50 per week.
the American Tobacco Company viii
donate IN cash 10 the person finally des-
ignated by such omploye a sum of money
equal TO the wages paid 20 such dead
employe by this company during the
last year of his or her life. not exceed
ing. however in any case. the sum of
$500"
Plants in Many Cities.
The American Tobacco Company has
plants located in the following cities and
towns: New York. Baltimore. Rich
mond, Danvllle, Newport News. South
Boston Va; Durham, Greenville, Hen
J derson. oxford. Rocky Mountain, VIII
son. n c., New Orleans, Louisville,
) OwensbOro. l. Niugton, Maysyille, Ky;
; ST Louis, AIidGieJown, Cincinnati, Ohio;
/ Jersey City. Chicago, Philadelphia,
! Clarksviue, Darlington, Timmousville,
s. c.
In addition 30 the foregoing the COM
pany has saIesmyn and other employees
+ in practically every important city in the
United States, SO that there is hardly
town of any size In the entire country
D. that does not contain "a number Of fami-
lies who viii he benefited by this action.
Factory managers throughout the
ecountry have sent reports 10 the gen
eral offices of the company at III Fifth
avenue. New York. since the notice was
sent OuI. saying that the new PROPOSE
tion has been received with The greatest
ENTHUSIASM among the employees Those
who Will be benefited by the company
oner include every kind of employe; the
travelling sa,esmen, OF whom the COM
pany employs several thousand. steuos-
raphers. clerks. boollkeopers. office boys,
mechanics, porters, truckmeu, Natch-
men ard common lah0rers. as well as
The skilled workmeu OF various classes.
Reasons for the Move.
j. Fletcher jr. comptroller of the
American Tobacco Company whose de-
partment has charge of the new benefit
plan, yesterday made the following
statement
''The directors of our company have
been carefully considering this PROPOSE
learned that the employees of the com
pany are paying thousands OF dollars
every year for Industrial insurance The
premiums or assessments of this type
OF Insurance are paid ia weekly install
ments and make "A more or less serious
drain upon the resources of employees
drawing small or moderate wages. After
due consideration the company devised
this plan 20 relieve ITS employees from the
expense of carrying any insurance OF
This kind. OF course we hope that those
of our employees who can AFFORD 10 do
so viii carry insurance additional 70
our bounty.
The plan of the paying OF The benefit
Is made as simple as possible. There "a !
absolutely no red tape of amy kind con-
uected with it,. No emplOye viii be call /
eel upon 10 contribute. directly or in /
directly a single penny 10 the fund out J
of which the benefit viii be paid. There
viii be no doc lmeut 10 br drawn up |
and signed
EmplOye Names Beneficiary.
"AU that the employe will have TO
do VIII be TO give 10 the cashier of the /
branch OF office at or from which he is
employed the name Of the beneficiary TO /
whom the bounty is TO be paid The
bounty is not attachabIe, nor viii it be
turned over 20 his heirs or assigns Of
the beneficiary. The reason for this is
that the bounty does not belong TO the
insured. but 10 the company, and can be
delivered only TO such person as the |
cmpIoye designates by his own free VIII. |
In other words. 1t viii be impossible Tor
anyone other than the person named by
the employe TO collect the money.
I'VE expect that the expense OF estab- /
fishing this bounty or benefit system
viii be large, but We believe that # will
be money we'll Invested. j viii GER
tainly greatly benefit our employees, and
we believe that It will have a tendency
10 keep in our employ the very best
class Of working people
Plan Entirely New.
So far as known, this is the first in
stance in which corporation has en-
gagged itself TO pay death benefits out
OF its own treasury.
other corporations have helped their
employees organize mutual benefit so
cieties, and have contributed funds 10
that end. Some have sold stock TO their
employees and have put into operation
dividend plans of one kind or another,
but this is, It is believed, the only case
on record in which "a bounty has been
payment OF any kind on the part Of
its employees.