New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-16
EMPLOYERS LIABILITY
The Opinions of Progressive Manu-
factuTer.

To the Editor Of The Tribune
Sir: In regard to the Wainwright-Phillips
bills introduced AT Albany affecting en-
pIoysrs' liability there has been sent 10 the
manufacturers and employers of Rochester
an "anonyrnous'' circular concluding 1t Is
earnestly hoped that these bills will not be
passed at this session 1t is to be re-
GREETED that the identity Of those VINO 50
earnestly hope IS not revealed.
In 1900 Governor Hughes appointed
commission to investigate the question OF
employers liability. This commission held
public hearings I'm Rochester and elsewhere,
and found an almost unanimous sentiment
among manufacturers and employers that
the present system was wrong and should
be changed. The conclusion reached by the
commission IL. as they say, neither mover
nor untried." Practically every Civilized
nation in Europe has discarded the old sys-
tern Of employers liability based on fault
and substituted system under which the
industry bears the burden of relieving the
distress of its injured workers practically
without litigation"
The principles involved in this matter are
plain. II a workman is injured there is q
loss which some one or society as Il whole
has TO meet. Under present conditions all
employees are actually paying out annually
sums OF money which would materially
make UP this loss II directly applied. These
sums arc, however. very largely wasted IN
the large profits paid to Insurance COM
ranies, the expenses Of "adJuSters." etc,
and in litigation. Some one, however. In
the end has to pay the economic loss. and
the employers really DO so by higher
scale of wages. higher taxes and the like.
In substance, the employers are really pay
ing to-day in at last two ways.
The anonymous" circular refers 20 the
additional cost TO employers of this pro-
posed legislation. IL may be interesting TO
note the opinion Of the n. II. Franklin
Company. Of Syracuse. on this point. The
Franklin company. comparing results under
present conditions and those that would eX-
ist if it had been operating under plan
somewhat similar to the one now proposed.
after careful calculation found it had in two
years paid out directly under the present
system to insurance companies. lawyers
etc. approximately 40 per cent more than
II would have paid had 10 directly COM
pensated its employees and saved all the
present waste. This calculation did not in
cIude the present indirect cost 10 it in
volved in necessarily higher wages and
higher taxes. 1t is. however. probable that
the new bills will lead some employers to
pay somewhat more than they have been
paying for insurance and lawsuits perhaps
50 per cent more). but money paid out will
really help their employees, lawsuits Will be
largely eliminated. and In the larger sense.
figuring the indirect payments involved IN
wages and taxes. there will be a real posi-
tive saving due 10 the elimination OF waste.
The general purpose of any legislation az
fecting this matter should be:
FIrst-To eliminate waste.
second-To do away. as far as possible,
with all litigation.
Third-TO so provide that a dollar paid
out by an employer will do the injured en-
ploye as approximately as possible 100 cents
of good.
The bills introduced in Albany are by no
means ideal. Unfortunately certain cOnsti-
tutional objections make this difficult. GER
tain notifications may indeed be advisable.
However this company feels on the whole
that the proposed legislation is sane and
lust and decidedly move I'm the right direc-
ton.
GERMAN-AMERICAN BUTTON co.
Rochester April O. 1910.