by pretended disablements. The benefit must also be tangible and fixed, to obviate discontent; for, as a rule, the people engaged in manual labor are suspicious of indefinite insurance, and dread being taxed for unknown quantities—the employés of the company were therefore divided into two classes—the first class containing those engaged in operating trains and rolling-stock, and the second containing all those not so engaged; and the unit of premium was fixed at twenty-five cents per month per rate, for each feature, or seventy-five cents for the three features of the lowest rate, increasing in the ratio as given in the table on page 773.
Members may now secure insurance under this feature to the extent of thirty rates, or six thousand for a premium of twenty-five cents a rate for death under benefit 5 only.
It was provided that, while no employé could take the benefits of a lower class than those to which his salary assigned him, he could take as many more rates (up to the limit) as he chose. Also that such of those employés in the service at the time of the inauguration of the association as did not desire to take the three, could yet, as they elected, enjoy the benefits of one or more features; which brought within the reach of all, on a uniform and simple scale, protection commensurate with what they could spare to secure it.
The manner of collecting premiums next demanded consideration. As no initiation fee could, with propriety, be exacted of those newly seeking employment for a livelihood, so none could properly be collected from those already in the service; and as, for obvious reasons, it was undesirable to ground the plan upon a capital stock company, it became necessary to mainly depend for assets upon the payment of premiums. By the simple expedient of requiring premiums to be paid in advance, there would always be on hand the maximum sum required to pay for the casualties of the following month, and this was also thought to be the least onerous and therefore the best form of subscription.
The liabilities and benefits of members being well known, premiums could be deducted from their wages on the monthly pay-roll, and thus all risk through the handling of funds by irresponsible parties was avoided, and the Baltimore and Ohio Company became responsible for the collection—the association being credited on the company's books with the premiums which remain in its custody until withdrawn by legitimate warrant. No large sums are allowed to accumulate, the surplus not needed for immediate wants being invested by the committee of management from time to time in first-class securities. It was believed, and the result has fully proved, that premiums thus collected, while subject to the scrutiny of every interested person, would be paid with less reluctance than after the money had passed into the actual possession of members, and in many cases they would not be conscious of having made any contribution at all.
