In practically all the unions trade-union benefits originated with the
local unions. With the introduction of national systems the unions have
pursued different policies with regard to the degree of freedom allowed
the local union in paying benefits. The national unions that pay
benefits may thus be divided into three classes according to their
relations with the local unions. In the first class are those unions
that pay insurance against death and disability.[10] These unions
reserve to the national union the exclusive right and authority to issue
insurance but permit the local organizations to pay other benefits. In
the second group are those unions that pay death, sick or out-of-work
benefits from their national treasuries, but prohibit the local unions
from paying similar benefits. The unions that have patterned after the
Cigar Makers' Union belong to this group. The chief of these are the
Deutsch-Amerikanischen Typographia, the Iron Molders' Union, the
Journeymen Plumbers' Association, and the Piano and Organ Workers'
Union. Finally, the largest group of unions paying benefits permit the
local unions also to pay similar benefits. The principal unions of this
character are the Typographical Union, the Brotherhood of Carpenters and
Joiners, the Brotherhood of Painters, and the Amalgamated Wood Workers'
Union. In general, the more highly developed the beneficiary functions
of the national unions become, the less freedom the local unions are
given in carrying on such functions. The tendency is therefore to
replace local with national benefits. The local unions still play,
however, a large rôle in the payment of benefits. It is probable that
the aggregate sum disbursed by local unions in the United States for
such purposes does not fall far short of the amount expended by the
national unions.

[Footnote 10: Order of Railway Conductors, Brotherhood of Locomotive