Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-12-30
INSURANCE FOR
ALL RAILROAD
EMPLOYEES
Erie Railroad Initiates New
Cheap Insurance Plan
For It's Workers
THREE CENTS A DAY
Policies of $4,000 Issued to Men at
/. Cheapest Possible Rate Other
Roads Expected to Follow Example

New York, Dec. 3O.-Two of the
most comprehensive and liberal
group insurance plans ever arranged
by corporations in behalf of employees
were announced today, to take effect
at the start of the New Year. The
Erie railroad will insure 10000 men,
fixing the maximum policy at $4,000
and for this charging the employees
three cents a day. The Delaware and
Hudson Co., will insure it's men,
without cost to them for $500, and
will permit them to take up to $4,000
insurance at comparatively small
cost.
The Erie insurance is divided be-
tween the Aetna Life and the Metro
politan Life, each company carrying
insurance on, in round numbers, lo,-
900. The total amount Of insurance
involved will be about S40,0o0,0OO.
The benefit will apply to those eli
gible employees who have had two
years or more service prior to mid
night December 81, 1921, when the
contract goes into effect. No medical
examination is required and each en-
ployee will name his own beneficiary.
Any employee who is permanently and
totally disabled before reaching the
age Of 60 will receive the face value
of his insurance certificate, payable
under one Of several methods. The
plan covers virtually all men employ
ed by the road.
For the first month the road will
pay the total cost of the. insurance.
After February the employees will
contribute toward the: cost. Their pay
.ments will vary, according to their
age, from l cent day per 81, 900 OF
insurance to cents day per 81 900
of insurance. The maximum amount
of insurance for any employee is to
be $4,000. 1t is planned for each en,-
ployee to have insurance equal to the
amount Of his annual pay: but not
above $4,000. When earnings are not
fixed the amount OF Insurance will be
the average Of the yearly earnings.
Each Delaware and Hudson en-
ployee Of two years standing was in
sured for $500 and those in the service
six months. but less than two years,
for $3.50, the company to pay the en-
tire cost and the men to select their
own beneficiaries,
At death the insurance will be paid
in lump SUM and to permanently
or totally disabled workers in month
ly installmerts.
A plan by which the workers band
ed in class groups could increase the
amount to a maximum of $1,000 each,
the company to pay part OF the ad-
ditional premium and the men the re-
mainder, was also announced.
In addition the company said it had
arranged for the workers to take out
"at exceedingly low rates" insurance
against accidents not covered by the
workmen's compensation laws, loss Of
work through sickness and also un-
employment.
No medical examination is to be re-
quired. Employees leaving the serv-
ice for any reason can exchange their
certificates without medical examina
tion for policies of the same amounts,
paying the regular rates for their
ages At the time of substitution.
Groups of employees, consisting Of
not less than three-fourths of those
in any one class, who desire insurance
above $500 must apply for it before
March 81 next. For each additional
81 900 the insured employee must pay
so cents month, the company pay
ing the premium in excess of this
amount.
Sickness insurance and accident
insurance are to be borne entirely by
the polcyholder applying for it, the
insurance to be paid beneficiaries for
six months at SIS week, the sick
ness premium being s1.25 month
and accident insurance at "a cents