Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-04-29
A Compensation Act.

| stdtIStiCS VI TIE Ills III dHNe '''
panes which make a speciality of EN-
ployers' liability insurance in New
York show that - per cent of thu
premium income is devoted to hghtlnf
the payment OF claims OF the injured
employees of their clients This is
| tremendous economic waste whicn Il
hateful to well-ordered conditions. II
| some way can be found to devote thi&
80 per cent of waste TO increasins
the claims paid, in size and nufioei'
not only would the employees ihJuie 0
be better COMPENSATED for their SUI
ferings and loss Of earning aDii'tS'
the employers themselves "o''N
make substantial savings through '"e
/ elimination of court proceedings WIN
the attendant loss of time anu '0''>
II would also promote 1ee''hs u
amitv between the large bodies Oh ell
Movers and their employees.
OF course any such plan Involves
,ba elimination of large part of the
liability insurance business, but wheh
tho, business contributes to a positive
| iniurv 10 all the parties involved. IT'S
elimination becomes necessary ana
| yiIj, he accomplished in time whether
the promoters desire it or not. Ihe
only beneficarics under the present
system are the agents. Such was the
case before the ruinous competition
among the life insurance companies oil
New York was eliminated by statute
The agents themselves were the only
bencficarics and a vast number llVed
on money which is now devoted l"
better purposes.
With these facts in mind efforts are
now being made TO bring employer
and employee closer together in that
state. in order that the employee may
have better compensation in the case
of injury and that the burden of en-
blowers liability insurance may be re-
duccd. Thus employer and employee
are brought together on a common
ground and with the common purpose
of doing away with the unnecessary
activities Of a third party who is now
working injury to both
A commission appointed to consider
the matter during the legislative re-
cess has submitted a report prepared
by it's counsel which is interesting to
students Of the problem in whatever
state they may live. The report sug-
gests a remedy designated as COM
pensation act, which is approved by
the largest employing interests as we'll
as by the larger labor organizations.
In hitting upon this solution the COM
mission has accomplished something
which is worthy of more than passing
work out this problem have resulted in
making the deadlock between capital
and labor more secure.
The constitution Of the state of New
York expressly forbids the passage of
anv statute which restricts the right
of recovery in negligence actions. This
obstacle has been overcome by pro-
viding machinery the use of which Is
optional. whereby the employer may
pay and the employee may accept in
lieu of the right of recovery at law a
stipulated compensation in case OF in
jury. regardless of the cause. This
optional provision opens up new re-
between the parties which
are within the constitution and does
not abridge the right OF the injured
workman or his family to seek COM
pensation in the courts just as is the
custom today in case there is desire
to do so
ployees is u perplexing question. The
legislatures of many states and the
legislative bodies of several foreign
have attempted to solve it.
Each has accomplished something. but
for the most part they have CROPPED in
the dark and have evolved bills or
statutes which only partially served
the end sought. Conditions in New
York have been far from satisfactory
to either the employer or the employee,
and il this commission has succeeded
in drafting a bill which contributes to
the ultimate solution of the general
problem it has served it's purpose we'll.