Engineers, Brotherhood of Locomotive Firemen, Brotherhood of Railroad
Trainmen, Order of Railroad Telegraphers, Switchmen's Union, Brotherhood
of Maintenance-of-Way Employees, and National Association of Letter
Carriers.]




CHAPTER I.


INSURANCE AGAINST DEATH AND DISABILITY.

The distinction between systems of insurance on the one hand and systems
of death benefits on the other is not so much one of quality as of
quantity. Legally the distinction lies in the fact that in the case of
insurance a signed contract known as a policy is given to the insured,
while in the case of a benefit no policy is issued. This difference is
not of economic importance. Ordinarily, however, where a trade union
issues insurance policies to its members the amount paid is larger than
in the case of a death benefit. The establishment of insurance systems
has thus been confined to a few organizations. The membership of these
unions receive relatively high wages and are regularly employed. The
highly important rôle which insurance systems have played in the
formation and working of these unions and the general similarity of
their experiences make it desirable to treat insurance against death and
disability separately from the more common death benefits.

The unions which have been successful in establishing insurance systems
are the seven principal unions of railway employees, viz., the Grand