[Footnote 26:  Constitution, 1903 (St. Louis, n.d.), pp. 5, 7.]

[Footnote 27:  The Railroad Telegrapher, Vol. 21, p. 292.]

Although the Order paid benefits almost from its organization, it was without an effective system of insurance until January 1, 1898, when the present system was established.  The first constitution, 1886, provided that local divisions should exercise every honorable means to assist a member in need, and at the session in 1887 a voluntary insurance association was established under the name of “Mutual Life Insurance Association of North America.”  The insurance failed entirely to attract any considerable part of the membership, and up to July, 1890, the total amount paid was only $2430.05.[28] In 1896 the Grand Division appointed a committee to devise a plan for a system of insurance.  The plan reported was submitted to referendum vote in December, 1897, and became operative on January 1, 1898.[29] From March 1, 1898, to June 15, 1899, applicants were received without an entrance fee, and during this period the success of the department was practically assured.  The insurance is compulsory on all members.  At present there are about 38,000 members carrying insurance, the mortuary fund has a balance of $120,000, and the total amount of insurance paid aggregates $142,000.

[Footnote 28:  Vol. 6, p. 310.]

[Footnote 29:  Vol. 14, p. 880.]

A local organization of switchmen was effected at Chicago on August 18, 1877, but a national union was not formed until February 22, 1886, when the Switchmen’s Mutual Aid Association was inaugurated.  At the first annual session in September, 1886, the grand master declared that the purposes of the organization were “to wage war against discrimination made by arbitrary employers; to organize for benevolent purposes; to amicably adjust labor disputes by arbitration; and for mutual aid to its members."[30] The Association was forced by the defalcations of its treasurer to disband, and a new organization, the Switchmen’s Union, was formed.  Since this reorganization in 1897 rapid growth has been made under the management of conservative officers.  On January 1, 1903, the Switchmen’s Union had a membership of 14,000.

[Footnote 30:  Switchmen’s Journal, Vol. 2, p. 247.]

The first constitution provided for death and disability insurance.  At the second session in September, 1887, the grand master reported $15,000 paid for death and disability claims during the year.[31] Until the disbanding of the Association in 1894 the insurance department was successful.  In 1901 the Union without a dissenting vote adopted a compulsory system of insurance.  During 1902 $6,151,200 of insurance was issued, during 1903, $2,906,600; while at the close of 1902 $4,779,600 of insurance was in force, and at the close of 1903 $6,679,200.  The total amount paid in death and disability claims since reorganization has aggregated $207,335.75.