THE ‘HEARTS OF OAK’ SOCIETY.
One of the oldest and perhaps the largest of the Friendly Societies for the benefit of the operative classes, is the ‘Hearts of Oak,’ which at the present time numbers over eighty thousand members, and has a reserve fund of nearly a quarter of a million. Such extraordinarily large proportions has this society of late years assumed, and so widespread is its influence and usefulness, that we feel sure a short account of its origin and working system will not be without interest, and maybe profit to the reader.
Thirty-five years ago—in 1842—the ‘Hearts of Oak Benefit Society’ was started at the Bird-in-Hand Tavern, Long Acre, London. Of its history for the next twenty years little can be said, save that, although its progress was not anything remarkable, it worked steadily and honestly at the object it had in view, and thus firmly established itself, if it did not produce any extraordinary success. In 1863 the number of members had reached eight thousand, a circumstance which rendered a removal to more commodious premises necessary; and these were purchased freehold in Greek Street, Soho. Notwithstanding, however, this increase of business the amount transacted was not considered by the promoters of the society in satisfactory proportion to the justifiable expectations of such an undertaking, the total number of members having in 1865 only reached ten thousand, and this was attributed to the result of bad administration on the part of the existing management. A change was made in consequence; when the present form of government was inaugurated, which had at once the beneficial effect of materially increasing the society’s business. So perceptible and rapid indeed was the progress of the ‘Hearts of Oak’ after this event, that in the year 1874 another removal had to be undertaken; and for this purpose, noble premises in Charlotte Street, Fitzroy Square, W., were bought and adapted at a cost of twenty thousand pounds, and have since served for all the business requirements of the society.
Having said so much for the history of the ‘Hearts of Oak,’ let us now briefly turn to the main features and working of the system pursued by this huge benefit society.
The predominating principle upon which the system acts seems to be a complete reliance upon actual merits and on them alone. As a consequence, a total absence of all external show and attraction will be found in the administration of the society. It clings to the term ‘society’ in opposition to ‘club’ with a most jealous tenacity, although we confess to seeing very little difference between the strictly lexical significance of the two words. Mr Marshall, the able secretary to the society, is of a different opinion, however, and holds that the associations which are respectively bound up with each term differ considerably; a club being generally looked upon as a meeting for social purposes, held as a rule at a public-house. ‘It involves,’ he goes on to say, ‘the glass, the pipe, the song, and other incidents of what is called good-fellowship; and also in many cases regalia, processions, dinners, suppers, and other devices for wasting money and weaning men from their homes and their families.’ Whether such ‘incidents’ are the associations attached alone to a club or not, it is not necessary here to determine, it being sufficient to know that at all events the ‘Hearts of Oak’ does not rely upon any of these things—although it is common to think that only by such inducements and attractions can the working classes be brought into habits and ways of thrift and saving—and in so doing, the society is a standing contradiction to all such opinions. It has never had to resort to any such extraneous aid. It does not make use of either public-houses or lodges; it indulges in no dinners or suppers, no regalia or processions, no pipe, glass, or song; it employs no agents, canvassers, or collectors; and it spends no money in commission nor yet in advertisements, generally so indispensable an aid to institutions of all kinds. Notwithstanding all this, the ‘Hearts of Oak’ has of late years admitted more new members than the increase shewn by the Odd-fellows, who possess lodges and branches in every part of the civilised world.
As already stated, the society now numbers more than eighty thousand members, and these are formed into divisions of one thousand each; and each of these divisions holds a meeting at the society’s house once every month for the transaction of business, &c. Every candidate for membership must earn not less than twenty-two shillings per week, and his age must not be more than thirty-six; while before election he has of course to satisfy the committee upon certain points relating to himself and (if married) his wife, and has finally to be generally approved of by them. There are certain trades and occupations which are considered dangerous and injurious by the society, and persons belonging thereto are therefore held ineligible for membership. Each member has to pay on entrance a fee of two shillings and sixpence if under thirty-two years of age; and three shillings and sixpence if over that age and under thirty-six, the highest limit for admittance. The periodical contributions amount to about nine shillings and sixpence each member per quarter; this sum having been found, however, rather more than the total average payment for the last six years. The separate items consist of two and twopence a month to the society’s stock; and at each quarterly meeting an equal proportion of the claims met by the society during the preceding quarter on account of the various benefits (not including sickness) it has during that period conferred. In fact, each quarter every member is required to clear the books of all demands. After having belonged to the society for twelve calendar months, a member who up to that time has paid all his contributions, can by the payment of an additional fee of two shillings and sixpence, become what is termed a free member, such members having the right to participate in all the benefits which the society affords.
The benefits offered by the ‘Hearts of Oak’ are: (1) Sick-pay at the rate of eighteen shillings a week to free members for twenty-six weeks; and should the illness continue beyond that period, half that amount for a further twenty-six weeks; after which the sick member becomes entitled to relief from further contributions, and to a pension payable at a rate in accordance with the length of his membership. Non-free members participate in this benefit, but of course on a smaller scale, which, however, is very liberal. (2) Funeral benefits; being the allowance of a sum of ten pounds on the death of a free member’s wife, and double that amount to the survivors of a free member upon his death. Certain proportionate rates are granted on the death of a non-free member, half such rates being allowed in the event of such a member’s wife dying. (3) Lying-in benefit; which is the grant of a sum of thirty shillings on the confinement of a free member’s wife; the marriage and birth certificates, duly signed, requiring of course to be produced on such occasions. And (4) Loss by fire; being a compensation allowance of not more than fifteen pounds in the case of any free member’s tools or implements of trade getting destroyed or damaged by fire. There are besides these some miscellaneous benefits to which free members are entitled, such as allowances for imprisonment for debt contracted under circumstances that are in a sense justifiable, or allowances to help towards defraying the cost of a substitute to free members who are drawn and liable to serve in the militia.
These benefits seem to anticipate the chief emergencies that may happen in the course of one’s life, as well as providing for the expenses always attendant upon death; and the allowances made in respect of them are, it must be admitted, very liberal, and are doubtless the means of causing so many poor persons to save in this simple manner against the occurrence of such untoward incidents.
The success of the ‘Hearts of Oak’ is largely due, however, to other causes. Principally, we think, it may be attributed to the great economy in its management; as, for instance, it saves a large sum by the fact of its not being what is commonly known as a ‘collecting society.’ On the contrary, the members bring or send their money quite of their own accord; the consequence being that, while the managerial expenses of some collecting societies vary from 25 to 70 per cent. on the annual income, the expenses of the ‘Hearts of Oak’ amount only to 3¾ or 4 per cent.
Another favourable point in the system pursued by this society is, that all members pay alike. Technically of course this must be considered unscientific, but in the aggregate the system is found to pay; just as the same charge for a telegram whether it be to Aberdeen or to the next street is also unscientific, but practically answers well. The great argument in favour of the system seems to be the fact that it promotes business—and what more is wanted? Our large insurance companies report about one thousand policies as good work for one year; whereas the ‘Hearts of Oak’ on its system reports over sixteen thousand new members during the same period. On some such system as this it were not impossible, we think, for the whole life-insurance business of the city of London to be done by one well-conducted office; in which case the insured would certainly derive one great benefit—namely, that of having to pay very much less, perhaps only one-half of the usual premium.
Another counterpoise to the disadvantage of charging all members alike is, that a lying-in benefit of thirty shillings—as already shewn—is allowed. To young men this has a great attraction; and the result is that the average age of joining the society is only twenty-seven. So rapid indeed has been the growth of the ‘Hearts of Oak,’ that an average age of the whole society, which ten years ago was nearly thirty-four years, is now only about thirty-three years.
One other circumstance which we fancy may have something to do with the success of the society is worth mentioning—it is the business-like manner in which the system adopted is carried out. Perfect discipline among the members is maintained, and a strict adherence to the rules that have been made enforced. Every infraction of a rule is promptly visited by the imposition of a fine on the offending member; and so stringent is the society in this respect, that the amount which annually accrues under this head is very large. In the accounts of the ‘Hearts of Oak’ for 1876 we notice that this item reaches the large sum of L.6949, 13s. 6d.; which not only served to defray the year’s expenses of the society (namely, L.5819, 9s. 7d.), but left a balance of L.1130, 3s. 11d. It can hardly be considered as exactly any merit of the society that it is thus able to pay its expenses; yet there stands the fact, whatever we may think of it. It is only fair, however, to state that the greater part of this large amount arises from a fine of ninepence imposed upon members who fail to clear the books by their quarterly night. This is levied more as a sort of interest for a month’s longer use of the money; and it is a striking instance of innate want of thrift on the part of the working classes, that so many are willing to pay ninepence for the use of ten shillings for the month, rather than arrange to be prompt in their payments. The revenue derived from this fine alone is about four thousand pounds a year. It is a curious fact too, that of the total number of members on the books at any one time, it is always found that just one-third will not pay at the quarter, and have therefore to be fined. In thus deferring their payments, these members are the means of allowing both the monthly and quarterly payments being reserved entirely for the purposes of the benefits already enumerated, and for profit; under which head the surplus now amounts to forty thousand pounds per annum; in point of fact, the cost of management has always been paid for by these miscellaneous receipts. This substantial advantage is probably caused unwittingly on the members’ part, but it is not the less felt or beneficial for all that.
Having briefly pointed out the main features and benefits of the ‘Hearts of Oak,’ it only remains for us to add one word as to the great usefulness of such societies. Notwithstanding the great success of the Post-office savings-banks and such other banks as are intended for the deposit of small sums, it is our belief that they are not so conducive to permanent saving and thrift among the poorer classes as may be supposed. The number of deposits in the postal banks in any one year is no doubt very great; but on the other hand, the number of withdrawals is also great; and from this fact we infer that the larger part of the sums placed there is more for the sake of temporary safety than with any view of permanent saving. Hence then the great usefulness of societies which yield ultimate benefits for present contributions. As already pointed out, the difficulty of persuading the poorer classes to save in this manner is by no means great; and once, therefore, a working man has become a member of such a society, he knows he must pay regularly; which when he becomes accustomed to it, he only feels as a natural duty, like the house-rent he has to pay, or any other such tax. A further advantage of societies too is, that his contributions cannot be regained, except indeed at a considerable loss; but in the savings-banks it is always at his own discretion to draw out his deposits; a discretion often not very wisely used. In this comparison, however, it is by no means our wish to suggest the slightest disparagement of savings-banks, which in their way are most useful to all who are really anxious to lay by. We have only desired to shew more forcibly the benefits of societies like the ‘Hearts of Oak,’ that thereby those whom it may concern may be induced—if they have not already done so—to become members.