1 00:00:01,100 --> 00:00:04,200 Welfare. Before the welfare state by 2 00:00:04,200 --> 00:00:08,900 Joshua Fulton, many people think life without the welfare state 3 00:00:08,900 --> 00:00:12,800 would be chaos in their minds. Nobody would help support the 4 00:00:12,800 --> 00:00:15,800 less fortunate and there would be riots in the streets. 5 00:00:16,000 --> 00:00:19,200 Little do they know that people found innovative ways of 6 00:00:19,200 --> 00:00:22,800 supporting each other before the welfare state existed. 7 00:00:22,800 --> 00:00:26,600 One of the most important of these ways was the mutual Aid 8 00:00:26,600 --> 00:00:32,000 Society Mutual Aid. Also known as fraternal ISM 9 00:00:32,000 --> 00:00:36,100 refers to social organizations that gather dues and paid 10 00:00:36,100 --> 00:00:38,800 benefits to members facing hardship. 11 00:00:38,800 --> 00:00:43,700 According to David B, 0 from Mutual Aid to the welfare state. 12 00:00:43,800 --> 00:00:47,000 There was a great stigma attached to accepting government 13 00:00:47,000 --> 00:00:51,600 Aid or private charity, during the late, 18th and early 19th 14 00:00:51,600 --> 00:00:55,000 centuries, Mutual Aid on the other hand did not carry the 15 00:00:55,000 --> 00:00:58,200 same stigma. It was based on reciprocity, 's 16 00:00:58,200 --> 00:01:02,600 today's Mutual Aid, Sippy and could be tomorrow's, donor and 17 00:01:02,600 --> 00:01:06,900 vice versa. Mutual Aid was particularly 18 00:01:06,900 --> 00:01:09,500 popular among the poor and working class. 19 00:01:09,500 --> 00:01:13,800 For instance, in New York City, in 1909, forty percent of 20 00:01:13,800 --> 00:01:16,500 families, earning less than a thousand dollars a year. 21 00:01:16,800 --> 00:01:20,800 Little more than the living wage had members who were in mutual 22 00:01:20,800 --> 00:01:24,900 Aid societies, ethnicity. However, was an even greater 23 00:01:24,900 --> 00:01:27,600 predictor of mutual Aid membership than income. 24 00:01:27,900 --> 00:01:31,900 The new immigrants such as Germans Bohemians and Russians, 25 00:01:31,900 --> 00:01:35,400 many of whom were Jews participated in Mutual Aid, 26 00:01:35,400 --> 00:01:37,900 societies at approximately twice. 27 00:01:37,900 --> 00:01:40,400 The rate of native whites and six times. 28 00:01:40,400 --> 00:01:43,900 The rate of the Irish. This may have been due to new 29 00:01:43,900 --> 00:01:47,700 immigrants need for an enhanced societal safety. 30 00:01:47,700 --> 00:01:53,100 Net by the 1920s. At least one out of every three 31 00:01:53,100 --> 00:01:56,300 males was a member of a mutual Aid Society. 32 00:01:56,400 --> 00:02:00,000 Members of societies carried over 9 billion dollars worth of 33 00:02:00,000 --> 00:02:04,500 life, insurance by 1920 during the same period lodges. 34 00:02:04,600 --> 00:02:08,500 Dominated the field of health insurance, numerous lodges, 35 00:02:08,500 --> 00:02:12,100 offered unemployment benefits. Some black fraternal Lodge has 36 00:02:12,500 --> 00:02:16,000 taking note of the nature of African-American employment at 37 00:02:16,000 --> 00:02:19,300 the time, allowed members to receive unemployment benefits, 38 00:02:19,600 --> 00:02:23,300 even if they were up to six months behind in dues. 39 00:02:24,900 --> 00:02:27,800 Under Lodge medicine. The price for Health Care was 40 00:02:27,800 --> 00:02:30,900 low members. Typically paid two dollars about 41 00:02:30,900 --> 00:02:34,800 a day's wage to have yearly access to Doctors Care. 42 00:02:35,000 --> 00:02:38,300 Minor surgery was frequently included in this fee. 43 00:02:38,700 --> 00:02:42,000 Nan Lodge members. Typically paid about two dollars 44 00:02:42,200 --> 00:02:45,000 every doctor's visit during this time period. 45 00:02:46,300 --> 00:02:50,500 Low prices for Lodges did not, however necessarily translate to 46 00:02:50,500 --> 00:02:55,100 low-quality the independent order of Foresters. 47 00:02:55,400 --> 00:02:58,300 One of the largest Mutual Aid societies frequently. 48 00:02:58,300 --> 00:03:03,400 Touted that the mortality rate of its membership was 6.66 per 49 00:03:03,400 --> 00:03:09,100 thousand much lower than the 9.3 per thousand for the general 50 00:03:09,100 --> 00:03:13,800 population. Rogers also had incentives to 51 00:03:13,800 --> 00:03:15,500 keep costs down. For instance. 52 00:03:15,800 --> 00:03:20,200 The ladies friends of Faith benevolent Association a black 53 00:03:20,200 --> 00:03:24,400 female society would pay Members taken ill two dollars a week. 54 00:03:24,500 --> 00:03:28,200 If they saw the lodge doctor and three dollars, if they didn't a 55 00:03:28,200 --> 00:03:32,800 visiting committee, also checked on the claimant to guard against 56 00:03:32,800 --> 00:03:35,200 false claims members, who fail to visit. 57 00:03:35,200 --> 00:03:39,800 The claimant were fined. $1 Mutual Aid societies also 58 00:03:39,800 --> 00:03:44,900 enforced more Codes in 1892, the Connecticut Bureau of Labor 59 00:03:44,900 --> 00:03:50,400 Statistics found that societies followed the invariable rule of 60 00:03:50,400 --> 00:03:55,100 denying benefits for any sickness or other disability 61 00:03:55,300 --> 00:04:00,800 originating from intemperance vicious or immoral conduct many 62 00:04:00,800 --> 00:04:04,100 societies, refuse to pay benefits for any injury 63 00:04:04,100 --> 00:04:07,600 sustained in the participation of a riot. 64 00:04:07,900 --> 00:04:11,000 Some lodges even denied membership to Who who, 65 00:04:11,000 --> 00:04:13,400 manufactured explosives or played? 66 00:04:13,400 --> 00:04:18,000 Professional football? Many Mutual Aid societies, 67 00:04:18,000 --> 00:04:22,100 branched out and founded their own hospitals and sanitariums 68 00:04:22,500 --> 00:04:28,800 the Securities, benefit Association or SBA charge $21 69 00:04:28,900 --> 00:04:32,200 for an 11-day. Stay at their Hospital in 70 00:04:32,200 --> 00:04:35,500 Kansas. While the average at 100 private 71 00:04:35,500 --> 00:04:39,800 hospitals. Was $72 again, quality was not 72 00:04:39,800 --> 00:04:44,700 necessarily sacrificed for price at the sba's sanitarium, the 73 00:04:44,700 --> 00:04:47,500 mortality. Ality rate was 4.5 percent. 74 00:04:47,500 --> 00:04:52,800 While the historical average for sanitariums was 25%, This is 75 00:04:52,800 --> 00:04:56,300 especially impressive considering that 30 to 50 76 00:04:56,300 --> 00:05:01,400 percent of all cases admitted to the sba's sanitarium were 77 00:05:01,600 --> 00:05:05,600 advanced. A large number of African 78 00:05:05,600 --> 00:05:09,000 American societies also created their own hospitals. 79 00:05:09,200 --> 00:05:12,200 In the early 20th century. It was not a given that 80 00:05:12,200 --> 00:05:15,300 African-Americans would be admitted into many hospitals. 81 00:05:15,500 --> 00:05:19,400 If they were, they frequently had to face such indignities as 82 00:05:19,400 --> 00:05:22,000 being forced to bring their own eating utensils. 83 00:05:22,000 --> 00:05:25,800 Sheets and toothbrushes to pay for a black nurse. 84 00:05:26,000 --> 00:05:31,000 If none was on staff when the knights and Daughters of Tabor 85 00:05:31,000 --> 00:05:35,800 in Mississippi a black fraternal With a reach across only a few 86 00:05:35,800 --> 00:05:42,000 counties opened tab borean Hospital in 1942 membership. 87 00:05:42,000 --> 00:05:48,100 Nearly doubled in three years to 47,000 Mutual Aid societies. 88 00:05:48,100 --> 00:05:54,000 Also founded 71 orphanages between 1890 and 1920 to almost 89 00:05:54,000 --> 00:05:58,200 all without government subsidy. Perhaps the largest of these was 90 00:05:58,200 --> 00:06:02,700 moose heart founded by the Loyal Order of Moose in. 91 00:06:03,400 --> 00:06:05,300 Eighteen hundreds of children live there. 92 00:06:05,300 --> 00:06:08,100 At the time. It had a student newspaper to 93 00:06:08,100 --> 00:06:12,200 debate teams, three theatrical organizations and a small radio 94 00:06:12,200 --> 00:06:14,400 station. The success of moose heart 95 00:06:14,400 --> 00:06:18,600 alumni was remarkable alumni were four times more likely than 96 00:06:18,600 --> 00:06:22,100 the general population to have attended institutions of Higher 97 00:06:22,100 --> 00:06:26,800 Learning male alumni earned 71 percent more than the national 98 00:06:26,800 --> 00:06:30,900 average and female alumni earned it 63 percent more. 99 00:06:32,300 --> 00:06:35,700 Of course, with so many services being supplied by Mutual Aid 100 00:06:35,700 --> 00:06:39,300 societies, many groups had reason to Lobby government for 101 00:06:39,300 --> 00:06:43,300 its destruction. The first major blow against for 102 00:06:43,300 --> 00:06:45,800 eternalism occurred. When the American Medical 103 00:06:45,800 --> 00:06:50,300 Association gained control of the licensing of medical schools 104 00:06:50,800 --> 00:06:54,600 in 1920. A number of State Medical 105 00:06:54,600 --> 00:06:58,500 boards, formed the Federation of State Medical boards, which 106 00:06:58,500 --> 00:07:03,500 accepted amas ratings of medical schools, as Authoritative the 107 00:07:03,500 --> 00:07:06,700 AMA quickly rated many schools as unacceptable. 108 00:07:07,100 --> 00:07:10,200 Consequently the number of medical schools in America 109 00:07:10,300 --> 00:07:18,700 dropped from 166 and 1904 281 in 1918, a 51% drop the increased 110 00:07:18,700 --> 00:07:22,500 price of Medical Services, made it impractical for many Lodgers 111 00:07:22,500 --> 00:07:25,800 to retain the services of a doctor medical boards. 112 00:07:25,800 --> 00:07:29,500 Also threatened many doctors with being stripped of their 113 00:07:29,500 --> 00:07:32,500 licenses. If they practiced Lodge 114 00:07:32,500 --> 00:07:36,600 medicine. The next most damaging piece of 115 00:07:36,600 --> 00:07:41,000 legislation was the mobile law. The mobile law required, that 116 00:07:41,000 --> 00:07:45,100 Mutual Aid societies, show a gradual Improvement in reserves 117 00:07:45,100 --> 00:07:48,000 until this time. Societies had tended to keep low 118 00:07:48,000 --> 00:07:51,700 reserves in order to pay the maximum benefits possible to 119 00:07:51,700 --> 00:07:54,300 members. High, reserve requirements made 120 00:07:54,300 --> 00:07:58,000 it difficult for societies to undercut, traditional insurance 121 00:07:58,000 --> 00:08:01,500 companies. The mobile law also required a 122 00:08:01,500 --> 00:08:05,800 doctor's Examination for All Lodge members and forbade all 123 00:08:06,000 --> 00:08:09,500 speculative Enterprises such as the extension of credit, by 124 00:08:09,500 --> 00:08:13,200 members by 1919. The mobile law had been enacted 125 00:08:13,200 --> 00:08:18,100 in 40 States. The requirement that all members 126 00:08:18,100 --> 00:08:21,900 undergo, a medical examination, effectively barred, Mutual Aid 127 00:08:21,900 --> 00:08:25,700 societies from the growing Group Insurance Market. 128 00:08:25,900 --> 00:08:29,000 Group Insurance is Insurance offered to a large group of 129 00:08:29,000 --> 00:08:32,200 people such as employees at a company without a medical 130 00:08:32,200 --> 00:08:38,400 examination from 1915 to 1920. A number of people insured under 131 00:08:38,400 --> 00:08:45,200 group policies, Rose from 99,000 to 1.6 million, some lodges such 132 00:08:45,200 --> 00:08:51,000 as Arkansas's Grand Lodge of the Ancient Order of workmen tried 133 00:08:51,000 --> 00:08:54,200 to get around the medical examination, requirement by 134 00:08:54,200 --> 00:08:57,300 offering Group insurance at a higher price than normal Lodge 135 00:08:57,300 --> 00:09:01,300 coverage, but this put them at a competitive disadvantage. 136 00:09:02,500 --> 00:09:06,200 Mutual Aid was hindered in other ways, lodges were prohibited 137 00:09:06,200 --> 00:09:08,100 from providing coverage for children. 138 00:09:08,400 --> 00:09:11,200 This opened the door for commercial companies to offer 139 00:09:11,200 --> 00:09:14,800 industrial policies in which children's coverage was 140 00:09:14,800 --> 00:09:16,700 standard. The number of industrial 141 00:09:16,700 --> 00:09:23,800 policies Rose from 1.4 million. In 1902 7.1 million in 1920 by 142 00:09:23,800 --> 00:09:26,800 1925 industrial policies. Surpassed. 143 00:09:26,800 --> 00:09:30,600 The number of fraternal policies group, medical insurance. 144 00:09:30,800 --> 00:09:34,600 Also eventually became Tax deductible while private plans. 145 00:09:34,600 --> 00:09:37,500 Such as those purchase through a lodge, did not. 146 00:09:38,900 --> 00:09:43,200 Fraternal hospitals also came under attack during the 1960s, 147 00:09:43,200 --> 00:09:47,800 the regulation of hospitals increased to borean hospital. 148 00:09:47,800 --> 00:09:52,700 In Mississippi was cited for an adequate storage and bed space 149 00:09:53,100 --> 00:09:57,000 failure to install doors, that could swing in either direction. 150 00:09:57,000 --> 00:10:02,200 And excessive Reliance on uncertified, Personnel, a state 151 00:10:02,200 --> 00:10:05,800 hospital, regulator said of the tube Orion hospital. 152 00:10:06,000 --> 00:10:09,600 We are consistently told that you do not have Funds to do 153 00:10:09,600 --> 00:10:12,500 these things. Make improvements yet. 154 00:10:12,600 --> 00:10:16,100 If you ought to operate a hospital, something has to be 155 00:10:16,100 --> 00:10:19,500 done to meet the minimum standards of operation for 156 00:10:19,500 --> 00:10:24,600 Mississippi hospitals, the hill Burton Hospital. 157 00:10:24,600 --> 00:10:28,700 Construction Act of 1946. Also hurt many fraternal 158 00:10:28,700 --> 00:10:31,500 hospitals, especially black hospitals. 159 00:10:31,700 --> 00:10:35,000 The ACT required that hospitals, receiving federal funds, use a 160 00:10:35,000 --> 00:10:40,000 portion for Indigent care and that That Services be offered 161 00:10:40,000 --> 00:10:43,400 without discrimination on account of race Creed or color. 162 00:10:43,600 --> 00:10:46,700 Although this enabled many blacks to get free service at 163 00:10:46,700 --> 00:10:49,300 hospitals, previously, unavailable to them. 164 00:10:49,500 --> 00:10:53,100 It also cut into the membership based for black fraternal 165 00:10:53,100 --> 00:10:56,100 hospitals. Additionally some hospitals such 166 00:10:56,100 --> 00:11:00,200 as to borean hospital and the friendship clinic in Mississippi 167 00:11:00,300 --> 00:11:02,700 received, no funds. While they're nearby 168 00:11:02,700 --> 00:11:06,900 competitors, received Millions. The Advent of Medicare. 169 00:11:06,900 --> 00:11:12,900 Also hastened, the Of fraternal hospitals, MIT Economist aiming 170 00:11:13,100 --> 00:11:18,600 Finkelstein, estimated that Medicare drove a 28% increase in 171 00:11:18,600 --> 00:11:24,400 hospital spending between 1965 and 1970 by encouraging 172 00:11:24,400 --> 00:11:27,500 hospitals, to adopt new medical Technologies. 173 00:11:28,800 --> 00:11:32,600 Smaller hospitals, such as many fraternal hospitals were not 174 00:11:32,600 --> 00:11:37,400 able to adopt new technologies as quickly as larger hospitals 175 00:11:37,400 --> 00:11:39,400 and were driven out of the market. 176 00:11:39,600 --> 00:11:43,000 Another Finding supported by Finkelstein some, fraternal 177 00:11:43,000 --> 00:11:48,000 societies escape the attack of the state, by converting into 178 00:11:48,000 --> 00:11:50,000 traditional Insurance corporation's. 179 00:11:50,300 --> 00:11:54,000 Both Prudential and Metropolitan Life, have their origins in 180 00:11:54,000 --> 00:11:58,400 fraternal ISM, many societies. However, simply died off. 181 00:12:00,200 --> 00:12:03,200 Although millions of Americans are still members of fraternal 182 00:12:03,200 --> 00:12:06,200 societies such as the Masons or the Odd Fellows, the 183 00:12:06,200 --> 00:12:09,800 organizations, no longer have the importance in society. 184 00:12:10,000 --> 00:12:13,400 They once did the history of fraternal ISM serves as a 185 00:12:13,408 --> 00:12:17,600 reminder of the power of human cooperation in a free Society.