d time a reputable physician, who must
sign all claims for sick relief. The result usually is the discovery of
laxity in the local administration and the necessary corrective measures
are applied.[232] The Cigar Makers have a staff of travelling auditors
who from time to time inspect the accounts of local unions and
scrutinize the administration of the benefits.

[Footnote 232: Proceedings of the Twenty-second Convention, 1902, in
Supplement to Iron Molders' Journal, September, 1902; Proceedings of the
Twenty-third Convention, in Supplement to Iron Molders' Journal,
September, 1907.]

The administration of out-of-work relief is similar to that of sick
benefits in that the national union must of necessity rely upon the
local union. The requirement of registration from day to day is the
chief administrative check upon the payment of the benefit to members
not entitled thereto.

The more complete the system of benefits the less is the difficulty in
preventing the payment of fraudulent claims. A union such as the Cigar
Makers or the Typographia has a comparatively small problem in
administration as compared with that of a union like the Iron Molders.
Since the Iron Molders do not maintain an out-of-work benefit unemployed
members are tempted to try to secure sick benefits. Even in the Cigar
Makers the sick benefit and the out-of-work benefit are used as a form
of superannuation relief. The addition of a superannuation benefit would
lower the expense of maintaining the sick and out-of-work benefits.

The administration of trade-union benefits is subject to certain rules
imposed by the statutes of the various states. All the commonwealths of
the United States regulate by law the conduct of insurance business. In
this regulation, distinction has necessarily been made between regular
insurance companies and that class of organizations known as fraternal
or beneficiary societies. The trade organizations described in this
monograph as maintaining insurance or benefit departments fall under the
latter class.

The unions paying insurance, as distinguished from benefits, have
conformed to certain requirements of these laws, either by incorporating
their insurance departments or by modifying the rules of the
organizations in harmony with special state regulations for fraternal
insurance companies.

Prior to 1894--from December, 1867, to 1894--the Brotherhood of
Locomotive Engineers had its headquarters in the state of New York