The differences in the cost of insurance are the result of several
factors. The slight degree of risk in the occupation is largely
responsible for the relative cheapness of the Telegraphers' and the
Letter Carriers' insurance. More important differences are due to the
age grouping of the membership. Thus the Firemen, whom old-line
companies, for the most part, classify as extra-hazardous, furnish
insurance against death and disability at $12 per $1000. The principal
reason for this low rate is the rapid change in membership, the old men
withdrawing and being replaced by young men. Near the close of the
nineties the cry of "Something must be done to keep the old members in
the Brotherhood of Locomotive Firemen" was raised; but it was clearly
shown that "the greatest favor a member of the Brotherhood could show
the insurance department was to pay his assessment for ten years and
then withdraw, permitting a man ten years his junior to take his place."
The grand secretary-treasurer states that the membership practically
changes every seven years, due to promotions to the position of engineer
and to withdrawals of older men for various reasons. The withdrawal of
old men conduces to a more favorable age grouping, to a decrease in the
death rate, and to a consequent decrease in the cost of insurance. The
Switchmen's Union presents an interesting contrast. The Union prescribes
no age limit, and higher positions in the service are not so frequently
open to the advancement of its members. The result is that the number of
older members is relatively greater, and insurance is maintained at a
considerably higher cost.

The cheapness of the insurance offered by these organizations is better
appreciated when compared with that offered by old-line companies. The
following table shows the cost of insurance per $1000 in a typical life
insurance company for different classes of railway employees and letter