The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-07-26
n. P. TO PROVIDE
INSURANCE FOR
ITS employees
Plan to Write Largest Insur.
ance Policy in Northwest
Is Announced
PLAN is EXPLAINED

st. Paul, Mimi, July 26.-Charles
Donnelly, president of the North
ern Pacific Railway, today announ-
ced that at meeting Of the board
of directors held on July Is, 1924,
approval was given to a plan under
which the 10000 workers on the
/ Northern Pacific will be given in
surance protection. The statement
follows:
"All employees in the service Of
the railway company six months
or more will be covered by a GER
tain amount Of free life and total
disability insurance, the premiums
on which will be paid by the rail.
way company without any expense
whatsoever to the employees. In
addition the railway company will
afford to employees in service one
year or more the opportunity to
purchase additional group life in
surance at rates far below the cost
of ordinary individual life insur-
ance by assuming part of the pre-
MUM on such additional insurance.
"The whole plan will become CT
fective if and when rs percent Of
the eligible employees have sub
scribed to it as requested by the
law governing group insurance. 1t
has been worked out in line with
the company policy of seeking to
improve the position of it's en-
ployes and of making it easier for
them to make provision for those
dependent upon them.
'This plan will not disturb either
the hospital service or the North
ern Pacific Beneficial association
or the pension system Of the rail-
way company, but will supplement
them so that when the insurance
becomes effective employees will
have available additional protec-
ton against adversely. Under the
proposed plan each employe will
get $4,000 life insurance the pre-
MUM on which will be paid for in
full by the railway company and
at the expiration on one years pre-
MUM this amount of free insurance
will be increased to $4,000, con-
tinuing at that figure thereafter
as long as the employee is in SER
vice; in addition to this free life
insurance, employees who have been
in continuous service one year or
more may purchase additional life
insurance in varying amounts on
what is known as the contributory
plan. The cost of this additional
insurance part is paid by the rail-
way company and part by the en-
ploye.
The cost to- the employe per
100000 of this additional insur-
ance will range some where be-
tween 70 cents and 80 cents per
month. An employee leaving the
service permanently for any cause
may obtain from the insurance
company. writing the policy at the
commercial rates applicable to his
age at the time he leaves the ser
vice and without medical examina-
ton, the amount of insurance car
ried fer him under this plan in
Guiding the $4,000 or $4,000 in
surance paid for wholly by the
Northern Pacific Railway Com
pany. ST..
"The insurance is payable in full
to the beneficiary in case of death
or if the employee becomes totally
disabled before he reaches the age
of 60 years it will be paid to him
in installments.
Amount of Insurance
"The amount Of insurance cover
ed by this single plan will be ap-
proximately $50, OOO, 100000. It will
be the largest single policy ever
written in the northwest, and the
third largest policy ever written
on employees of American railroads
being exceeded only by the policies
of the Southern Pacific and Union
Pacific.
'This insurance is bought by the
railway company in wholesale
amount and at wholesale price, -
said Mr.. Donnelly. "The company's
only purpose in buying it is to
make it available to employees at
rates much less than cost; the en-
ploye is not required to stop his
brotherhood insurance or any
other insurance. Our aim is sim
ply to provide easy insurance for
all employees who wish it, includ-
ing those who, because of age or
i'll health are not able to get it in
any other way. 1t is prompted by
the realization which is everywhere
deepening of the dependence one
upon the other of employer and
employed.
mo railway company in America
has a body of employees more eff
Gent or faithful or loyal than that
of the Northern Pacific and it is
deeply gratifying to the manage,
ment to be able to extend to them
this evidence of the company's ap-
probation. The plan will be sub
mitted to them within the next few
weeks"