Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1911-04-08
Miles Dawson of the Russell
Sage Foundation Fund Dis.
cusses Important Question
at Philadelphia.
SHERMAN SAYS BOTH
SHOULD PAY TAX
He Tells American Academy
of Political and Social
Science That Burden is a
Mutual One.

Philadelphia. April N--ln discuss.
Ing the best system oi workmens
compensation FOR the United states
Niles y Dawson. actuary OF the
Russell Sage foundation. today said
to the fifteenth annual meeting OF the
American Academy OF Political and
Social Science
The subject must Ice considered In
connection with the effect of differ.
cnt systems upon the interests of en-.
pioycrs. The employees and the gencr.
81 pubic II IL. therefore. necessary
To Inquire which method will impose
The lowest and most equltably dis,rib.
ulcd cost upon The employers. and
thereby upon the industries, which
system viii reader the most effective.
reliable and universally realized aid
To injured employees whose deaths are
caused by accidents. and which sys.
TEN vii, he OF the creates, service
iO The public. taking into account the
cost, the relief of the pressure upon
lubiic ana private charity. the dimin.
uiion ot paupcrism a. prcmaiurc
compulsion TO labor and Of crime
Account must also he taken OF all
the prejudice on the subject which
may have been erected into fixed 30.
litical principles aud OF the legisia-
lion already achieved In two states
II has taken the iorm of pubic IN.
surance and In the report OF one state
committee II Is recommended on the
coDp,llsory basis, and in the report Of
another. on AN optional basis These
do not Indicate that there is a serious
obstacle in preIudices against state
insurance II II viii best answer the
purpose
A. IA" present time We are facing
The cNtravagant cost OF private in.
surancc. most Of which Is believed 10
bc inevitable. The expenses amounting
ioughly. TO onc.half OF the premiums
This ratio of expense continues In
Great Britain under the worknen's
compensation II is accompanied also
necessarily bS close settlements and
u strong preference tor lump sum set.
Elements, white workingmcn. their
families aud the community are better
served hy benefits being paid cur
rcnllN like wages
The estimated cost for agents
commission alone. were workmcn'
compensation IN full operation in the
United States. would not he less than
sl1O. .Hoo. .0oo ana Of total expenses
inlly twice this amount a. against not
more than siG00O.uoO or $50 600 o00
total expenses under n general. ma
tional wild. n!u,sOrl insurance sys.
ten. This enormous. unnece ssarN cN
penditurc. once firmy established, Is
lficul, To shake OF. because II Is
taking away The livelihood OF persons
engaged In the business. The cx
pcndllurc. therefore should no, be IN.
cured but instead should be avoided
rom the outset
The method OF insurance under
state compulsion in association of EN-
ploycrs tNin. The rates ana with
Joint com uitteos OF employers and
employees determining ,he benefits II
the Nisest course ndeI such a svs
tenn the pressure of the cost viii
gradually increase. bur as us maxi
num would be much lower than m.
der private Insurance The system
would also tend more than an, other
tu Introduce enertive prevention OF
accidents ana thereby diminish the
waste
This system IL best adapted 10 the
United tatcs. whether undertaken by
The states on bv the nation. |, Is con
slitutiona under most oi the state
constitutions. An occupation or cx
else laN Tor this purpose levied upon
employers of. If sickness Insurance l.
included upon employers and EN-
loves oou,d be- collected under the
taxing powers of ihe national govern.
mont, and distributed for these pur.
poses. which are strictly the general
welfare OF the United States"
T. Tccumsch sherman, former la
bor commissioner uf the state ui New
Work.. spoke on the merits az com
pcnsntion law. Tie said
II vii HINT, my arguments To- those
which apply with full force only to|
employment in the more hazardous
organized Industries, To- which, In my
Judgment, our first experiments in
the law of compensation should he
limited In their application The COM
pcnsation law IL u Development from
, the principles oi tn. negligence law,
Corrected Ia conform tu tn" lessons
1.f .Nperi"nc. and to modern sci-n.
Dfic knowi,dg" and modified with -
"iew to concrete as distinguished
from abstract Justice. Tho cumpcnsa
tion law differs from the law of ncgli-
g"nce In principle in that II changes
IN" rules oi contributors Negligence.
"i assumption of risks" and uf "fcl.
loM servant the criterion of "ncgll-
gcnce' and the rules governing tn.
burden "t pr""f and IN that IL fixes a