onductors, Brotherhood of Locomotive
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 role 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
Brotherhood of Locomotive Engineers, the Order of Railway Conductors,
the Brotherhood of Locomotive Firemen, the Brotherhood of Railroad
Trainmen, the Order of Railroad Telegraphers, the Switchmen's Union of
North America, and the International Brotherhood of Maintenance-of-Way
Employees and the National Association of Letter Carriers.

The oldest of these organizations, the Engineers, was formed at Detroit,
August 17, 1863, as the "Brotherhood of the Footboard," and was
reorganized at Indianapolis, Indiana, August 17, 1864, under the present
name. Under the original constitution, foremen and machinists as well as
engineers were admitted; but since February 23, 1864, membership has
been restricted to locomotive engineers.[11] The Brotherhood was
prosperous from the outset, and at the twenty-first convention in 1884
Grand Chief Arthur reported 258 subordinate divisions with 16,000
members; at the sixth biennial session in May, 1904, Grand Chief Stone
reported 652 divisions with 46,400 members.

[Footnote 11: