The labor world. [volume] (Duluth, Minn.) 1896-current, 1912-08-31

State Bar association held in Minne-
lette, president of the Minnesota EN-
| ployers' association, dwelt upon an
article written by DR.. Friedensburg,
late president of the senate of the I'm
perial Insurance office of the German
! empire in which the writer casts dis
| credit upon the German insurance
! system.
J. It is the first effective attack made
upon the German system and Amerj-
can opponents of state insurance take
pleasure in referring to DR.. Fiedens-
| burg's article to strengthen their po-
sition.
Probably the best informed Ameri-
can on the German system is DR..
Frankel, now assistant secretary Tor
/ the Metropolitan Life Insurance. COM
pany, but formerly connected with
the Russel-Sage Foundation fund who
spent considerable time in Europe
studying the operation of working
mems compensation acts in foreign
countries.
After Mr.. Gillette made reference
to DR.. Friedensburg's article at the
meeting of the State Bar association,
the editor of The Labor World asked
| and secured from DR.. Frankel his
criticism Of the article. 1t reads as
follows: ~
In paper read by Edison S. Lott,
president of the United States Casual
ty company of New York, before the
Liability Insurance association at it's
recent annual meeting, the writer in
refuting the arguments raised in IA
vor~ of state insurance scheme foc
compromising workmen against the
results of industrial accidents and to
show the undesirability Of such a
state plan, quotes from remarkable
paper recently issued under the pen
Of Dr.. Ferdinand .Friedensburg, who
for 20 years was president Of the sem
ate Of the Imperial Insurance office
OF the German empire. This article
OF DR.: Friedensburg, entitled: The
PRACTICAL Results of Workingmen's
Insurance in Germany" which was
translated by the Workmen's Com
pensation service and information bu-
reau, has been widely circulated and
has been used as a text by many
writer's, to indicate that the much
wanted German scheme has decided
dement's and shortcomings. In fact,
in an editorial which appeared in the
New York Post, the writer refers to
DR.. F'riedensburg's brochure as moth
ing less than an amazing indictment
Of the whole German workingmen's
insurance system. The Jersey City,
N. j., Journal, in commenting upon
DR.. Friedensburg's article states that
his book is a startling arraignment
Of a system which heretofore has,
been considered as beyond criticism.
In view Of these statements and Ct
the facts cited in DR.. Friedensburg's
article, it is timely to consider sober
ly and calmly the facts which DR..
Friedensburg has presented and u.s.
certain whether they will bear the
light Of close scrutiny and careful.
investigation.
THE summary Of DR.. Friedens-
burg's paper is quoted in Mr.. Lofts
address as follows:
rupted the system at the beginning;
that 'WOrkmen very soon got accus-
toned to bringing their, complaints,
doubts, and claims Of all natures what
often without appealing to any inter-
mediate instance:' that the Imperial
Insurance office, which Is intended to
handle questions Of law, is over
claims; that the expenses of the sys-
tenn continued to grow as the force
. required increased;' that the number
Of OFFICIALS in the Imperial Insurance
office has multiplied in tune with the
=. ~. the. num- CT Of accidents grows
with monstrous speed; that in 1885,
100, l59 accidents were. reported and
1924 90 per cent compensated, in
1908, 662,321 accidents were reported
and 1896 (pers cent? compensated
/ that often an accident is sought for
and arranged;' that sometimes a schron-
tcally sick man sWears that his old
illness is the result~of q recent acct:
the communal chiefs act entirely I'M
der the belief that they ought to help
their local residents. 80. as a result Of
the common opinion that the insurance
know what to do with, and this idea
strikingly deadens the conception Of
legality and love for, the truth that
naturally the universal laxity, the pay
ment Of unjustified claims, and the ex-
travagance practiced in equippihg hos
pitfalls and sanatoria impair the in
tegrity of the insurance funds;' that
employers do all that is possible to
to be unjust, and in vain enormous
sums are annually exacted from them
in fines;' that -. Industrial unions
and insurance institutions have
been repeatedly on the brink Of bank
ruptcy;' that the excessive cost Of the
insurance system, which is one result
! Of the degradation of the system into
charity, Is complained of by employers;
that state insurance, therefore, reacts
injuriously upon Germany's industry;
that as a result.of the cost of insur-
ance, which has gradually become
monstrous, German industry is put
at a disadvantage and is hampered to
the extreme In its competition with
foreigners -. I Is
The writer holds no brief for the
German system for compensating
workmen for industrial accidents.
That the system is not perfect no
one can deny and probably no one
| Is better acquainted or more con.
cerned about the weaknesses In the
system than the men in Germany who
have advocated the German system
for rs years and who today are its
staunchest opponents. In fact, in tho
realization of needed changes in the
law, the effort has been made for
"a -