CHAPTER VI.

MISCELLANEOUS FUNDS.

INTRODUCTION.

Thirteen funds investigated have been classed as miscellaneous. They present certain distinctive features entitling them to recognition under the general discussion of Workmen's Insurance, but because of their peculiar features they can not be included properly in any of the several divisions and groups under which the other funds are shown. They are described here separately in such detail as the data obtained will permit. All but two are establishment funds.

The employees contribute to the maintenance of seven of these funds; the other six funds are gratuities of the establishments, no dues or assessments whatever being paid by the employees. The funds contributed to by the employees provide different benefits, such as cash benefits for temporary disability, hospital treatment, funeral expenses, payment of insurance premiums, etc. The dues range from $5.20 to $12 per year, not including three funds where payments are based wholly or in part on a percentage of monthly earnings. In one of these funds the cost is 1 per cent of monthly salary, in one 3 per cent of monthly salary, and in the other 3 per cent of monthly salary in addition to monthly dues.

Practically the same benefits are secured to employees in the cases of the six gratuity funds provided by establishments.

DESCRIPTION OF INDIVIDUAL FUNDS.

CARNEGIE RELIEF FUND.

This fund was created by Mr. Andrew Carnegie in 1901, and provides for accident and death benefits and pension allowances for employees of the Carnegie Steel Company and its constituent companies. It is not incorporated. The employees in no way contribute to the fund, Mr. Carnegie having created an endowment of four million dollars of the Carnegie Company bonds, the income from which supplies the annual income of the fund. At the close of the fiscal year December 31, 1908, there were approximately 85,000 employees in the companies' service, and benefits or pensions were being paid on account of the injury, death, or superannuation of 804 employees. The office is in Pittsburg, Pa.

ADMINISTRATION.-The affairs of the fund are administered by an advisory board, appointed annually by the board of trustees of the fund. The advisory board elects a treasurer from among its own members and appoints a manager and an assistant manager. A part only of the operating expense is paid by the fund, the company furnishing offices, the service of company surgeons, etc. The manager has general charge of all business pertaining to the fund and passes upon all claims, but an appeal may be taken from his decision to the advisory board.

CONDITIONS OF EMPLOYMENT.-There is no specified age limit for entering the company's service. Employees leaving the service forfeit all right to benefits or pension allowances, but if they are reemployed within two years, no break is considered to have occurred in the continuity of their service. Time thus lost, however, is deducted in computing length of service. Time lost owing to leave of absence, suspension, temporary lay off on account of reduction in force or disability is not deducted.

DISABILITY BENEFIT.-Benefits are paid for disablement resulting from accident or cases of sunstroke or heat exhaustion occurring to employees while on duty at the following rates: Unmarried men, 75 cents per day; married men, $1.00 per day. No benefits are paid until the time lost by reason of the disability aggregates one year, after which time benefits are paid monthly as long as the disability lasts. Benefits are not paid for injuries due to intemperance, unlawful or immoral acts, or for time for which wages are paid by the company. Beneficiaries must not leave the company surgeon's jurisdiction without his knowledge or permission. During the year 88 persons received accident benefits aggregating $20,307.70.

DEATH BENEFIT.-Benefits on account of death resulting from accident, or cases of sunstroke or heat exhaustion occurring to employees while on duty, are paid as follows: In the cases of married men, $500 for the widow and $100 for each child under 16 years of age, the total death benefit in no case to exceed $1,200; in the cases of unmarried men, $500 for the relative or relatives of whom the deceased was the sole support, or to whose support he was a regular contributor. Benefits are not payable for death due to intemperance or to unlawful or immoral acts. Benefits are paid in monthly installments, the amounts depending on the financial condition of the beneficiaries. During the year benefits amounting to $109,023 were paid on account of the death of 402 employees.

PENSION ALLOWANCE.-Any employee of a constituent company of the Carnegie Steel Company which has been ten years controlled by the Carnegie interests, who has reached the age of 60 years and has been at least fifteen years continuously in the service of the company or the employing constituent company, and is incapacitated for

further service, may be granted a pension. Any employee of a company which has ceased to be a constituent company of the Carnegie interests is eligible to a pension allowance, provided that at the time the company by which he is employed left the Carnegie interests he had reached the age of 55 years, had been twenty years in service, and his case fulfills all the other requirements. In such cases only such time as was given by the employee to the Carnegie interests is included in computing length of service. If an employee becomes. permanently totally disabled from sickness or injury while not on duty before reaching the age of 60 years, provided his case fulfills all the other requirements, he may be granted a pension. A physical examination by a company surgeon, or some other surgeon satisfactory to the manager, is made of all applicants for a pension allowance.

Pension allowances are paid monthly for life on the following basis: For each year of service, 1 per cent of the average regular monthly pay received for the entire term of service. Pensioners may engage in any gainful occupation outside of the company's service. During the year 555 persons received pension allowances amounting to $81,093.

If at any time the total benefit payments and pension allowances should exceed the annual income, the regulations provide for a ratable reduction in all allowances and benefits. No assignment of pensions or benefits is permitted. Pensions or benefits may be withheld or terminated on account of any misconduct on the part of the beneficiary.

CASES OF BENEFITS ON THE ROLL DURING THE FISCAL YEAR ENDING DECEMBER 31, 1908.

THE UNITED CIGAR STORES COMPANY OF NEW YORK, N. Y.

This company, with branch stores throughout the United States, provides sick, accident, and death benefits for certain of its employees. At the close of the fiscal year ending January 1, 1907, there were 1,914 employees, 1,594 of whom were males and 320 females. The total number entitled to participate in the benefits was 844 male employees. The temporary benefit feature was instituted in 1903, and the insurance feature in 1904.

ADMINISTRATION.-The assistant secretary of the company administers the affairs of the benefit features, and passes upon all claims of employees to benefits. His action is final.

CONDITIONS OF MEMBERSHIP.-The minimum age limit for entering into the service of the establishment is 16 years and the maximum 45 years. All employees in Greater New York are entitled to participate in the sick and accident benefits except the clerical force, which is excluded from all benefit features.

Participation in the death benefit feature is limited to employees not over 45 years nor under 21 years of age who have been not less than one year in the employ of the establishment and have passed the required physical examination of the life insurance company in which the establishment insures eligible employees. All rights to benefits terminate upon leaving the employ of the establishment. There are no fees, dues, or assessments, the entire expense of the benefits being borne by the establishment.

TEMPORARY DISABILITY BENEFIT.-Employees in Greater New York only are entitled to temporary benefits. These benefits are in effect from date of employment. There are three classes, viz: Highest class-Employed more than one year: Receive the services of physician, medicine, etc., and three-fourths of salary. Second class-Employed six months and not more than one year: Receive services of physician, medicine, etc., and one-half of salary. Third class-Employed less than six months: Receive service of physician, medicine, etc., and one-fourth of salary.

The cash benefits are paid for a period not to exceed two weeks. Benefits are forfeited for failure to notify the establishment in writing or by telephone message as to the cause of absence, the probable date of return, and the home address of the employee. The services of a physician and medicine are furnished during disability. Temporary disability benefits were received by 370 members during the year. The amount expended for cash benefits during disability was not reported.

DEATH BENEFITS.-Death benefits are divided into two classes, employees receiving an annual salary of less than $1,000 being insured for $1,000; those receiving $1,000 and upwards are insured to the extent of their salaries, but are limited to the sum of $2,500. All insurance is for one year, from August 18 of any year. In case of death, claims become payable three days after the verification of proof. Claims are usually settled in four days. Self-destruction, sane or insane, within the first year of insurance is a risk not assumed by the insurance company and causes the forfeiture of benefit rights. One death benefit was paid upon a $1,000 policy during the fiscal year.

OTHER BENEFITS AND PRIVILEGES.-Employees in Greater New York are entitled to medical and hospital service, medicine, suspensory bandages, and eyeglasses, at the expense of the establishment. The establishment contributes to the Red Cross Hospital. During the fiscal year there were four cases cared for in this institution.