United labor bulletin., 1909-10-08
INSURANCE by UNIONS.

Four Principal Organizations Insure
Members at Cheaper Rates Than the
Old Line Companies-Averase Cost
Per 500.
Discussing trades union insurance in
the Typographical Journal, Don C. d.
Moore presents the following intec,4 -
ing data:
The Cigarmakers' union is one of the
nost interesting of all the unions for
surance. The union has been in exist
ence since 1864 and began paying sick
and death benefits in 1881, twenty-e sht
years ago. and out of work benefits in
1885 The membership of the cigar
makers approXimates that of the lnle1
national Typographical union, or upward
of As, 900 In addition to the three forms
of insurance-sick, death and Disability
and out of work-the organization pre-
vides for strike benefits and maintains
loaning fund for travelling m mbers,
which amounted in 1906 to $50,O5O.
Applicants who are suffering from any
chronic disease or who are more iha'
fifty years of age receive no sick behe
fits and not more than $50 death bene-
fits, but they pay only Is cents weekly
dues. or half the regular per capita
Out of Work Benefit-A member who
for two years has paid his dues is en-
titled to receive during unemployment
SO weekly for six weeks. After an In
termission of seven weeks he may again
receive the same for another six weeks,
but not more than s54 in any one year
The amount paid out in 1906, the latest
available figures, was $2S,011, or an av-
erage cost of 60 cents per member per
year.
Sick Benefits-A member who has
paid his dues for an entire year has
the right to receive S. weekly during
his sickness, but not to exceed thirteen
weeks. No benefits are paid the first
week. and if the sickness is caused by
drunkenness or vice no benefits may be
drawn. The sick benefits paid in 1906
amounted to s162,9O5, or $3.50 per
capita.
Death Benefit-the death benefits are
graded according to length OF MEMBER
shin If the deceased has been mem
Der for five years 5000 is paid, for ten
years $3.50 and fifteen years $3.50. An
interesting feature of this part OF the
system is that if a member be totally
disabled, losing say his eyesight or the
use of both hands, he receives lump
sum equal to the amount his family
would receive in case of his death. The
cost of the cigarmakers' death and dis
ability benefits during 1906 was s1S5,514
or $4.OS per capita.
The organization has been contemplate
ing the addition to the above of an old
age pension feature. The union had on
hand at the close of 1906, $714,5O6, OF
about SIG per capita, which would seem
to insure financial stability.
The railway brotherhoods are also an
interesting field of inquiry on the sub
iect of insurance Following as they dc
very hazardous occupations, the rail
way workers feel the need of death and
disability insurance more than other
kinds. and they provide it generally in
the form of compulsory minimum, with
an optional addition. The respective
amounts in the four principal brother
hoods are:
Compulsory Optional
minimum. addition
Brotherhood of Locomo-
tive Engineers ...... $1,000 $4,000
Order of Railway Con
ductors .....: 1000 1000
Brotherhood of Locomo-
tive Firemen ........ 1,50O 1900
Brotherhood of Railway
Trainmen .....,...... ooO oo'
In this connection the cost of insur
ance to the members, compared with
the cost in private companies, should
be interesting to those who contend that
labor unions cannot furnish insurance as
cheap as the companies making it
business. Following are the figures
showing the charge levied by the broth
erhoods and the rate of the casualty
companies for the same class of men al
thirty-five years, the rates being $1,000
insurance.
Rate o
Rate of Casualty
union compan!
Engineers ........... $3.50 s27 7.5r
Conductors .......... 1900 222;
F4remen ............ 1900 27.2;
Trainmen .. 1900 272;
The average cost per $1,000 insurance
for the four unions is s1595, while the
average in the old line companies fo
the same occupation is $25.9S, or al
average difference of $1,000 in favor o
the brotherhoods. Moreover the insur
ance companies rates cover payments
only in case of death, while the brother
hoods pay the same amount for total dis
| ahilit,r &c for death-nn small matfer IL