The Detroit times., 1912-08-12
BIG DETROIT CONCERNS
ELECT TO OPERATE UNDER
new LIABILITY STATUTE
Law, Effective Sept. /, Fixes
Definite Compensation for
Various Accidents
APPLIES TO NEARLY ALL
Domestic Servants and Farm
Laborers Only Employees Not
Affected by Measure
APPLIES TO NEARLY ALL


exact estimates OF the expense TO
which employers will be subjected.
The first definite indication OF the
cost will come when the old-l!ne ac-
cident insurance companies announce
their rates for Michigan under the
new legislation. This. IL is expected,
they will do about the last week in
August. But IL will be considerably
later that the expense under al four
options allowed 10 the employers VIII
be definitely known.
Aside from insurlng in the Old line
companies an employer is permitted
10 go into a mutual insurance com
pany organized under the act; TO ad-
minister his compensation funds HIM
self IL he has shown financial respon.
sibility, or 10 place the administration
Of such funds in the hands OF the
commissioner OF insurance.
While mutual insurance companies
are in process OF formation. Il will
take some time for them TO get far
enough along to be ready 10 announce
a schedule OF rates, though former In
surance Commissioner Dearth OF Min
nesota, Is said TO have interested
about 100 Michigan manufacturers In
the organization of a mutual COM
pany, and the furniture manufacture
ers OF Grand Rapids are also said TO
have one in contemplation. As FAR
as the employers who will administer
their own indemnity funds are con-
cerned, II Is manifestly impossible 10
say what their expense will be, and
the bureau In the state insurance de
partment that will be established 10
administer such funds will not be or
ganized until Sept. /, when the law
takes effect, and il VIII be impossible
| for the insurance department 10 nix
any rates until after II has mad an
expert go over the field and classify
the risks In the various grades
But on Sept. l. the employers OF
| Michigan lose the three defenses In
I'court that have been their main con-
/ tentions in damage suits arising from
| the injury OF employes-negligenc
OF the employe himself, negligence
OF a fellow employe and the conten-
| ton that the employe assumed the
risks incidental 10 his employment
The new law provides that In an &C.
ton TO recover damages for personal
injury. none OF these three conten-
tons shall be defense.
DAMAGE Schedule Fixed.
On the other hand the employer Is,
under the new law, given the benent
OF having all damages for injuries TO
employees governed by schedule that
explicitly fixes the amount or dam
ages for Injuries to employees gov
erned by a schedule that explicitly
fixes the amount OF damages Tor any
kind OF an accident. II an emfloye
is killed the payment made to his de
pendents will be equal TO half his
average wages for a period OF oOO
- We from the date OF the accident,
!. an $40 a week or less
>Shan 81.
when an accident causes total dis
ability the employer must pay the In
iured man half his average wages,
but not more than $40 or less than ~,
for not more than 500 weeks, the total
compensation being limited to $4,OoO.
For the loss OF thumb the Injured
man is to be on half pay for 90
weeks. for a first finger, half pay for
AZ weeks. for a great toe. half pay
for 30 weeks; a hand. half pay Tor
15O weeks: arm, half pay 200 weeks;
foot. half pay 1875 weeks; leg, hall
pay It's weeks; an eye, haf pay lVV
weeks.
Any agreement by an employe 70
waive his rights under the act Is oe-
clared invalid, and payments lnoer
the act are not assignable or suoJeet
10 attachment or garnishment OF IL
able In any way for debt.
II no dispute arises over any ques-
ton. such as the injured mans adj
ity 10 return TO work, the payments
OF the indemnity proceed without any
interference from the industrial
board. which has charge OF the al.
ministration OF the law, the ooard
merely reserving a report OF the ac-
cident when Il occurs and a report
when the payments are fnally com
Melted. But II dispute arises IL Is
settled by arbitration, the Industrial
board furnishing one OF its members
for one arbitrator, the employe fur'
nishinR one and the third being
selected by the employer. insurance
company or state insurance DEPART
mont whichever is Administering
the indemnity FUNDS. Each OF the
three arbitrators receives s. per day
and travelling expenses as his fee.
Industrial Board Personnel.
John r. Kinnane. OF Bay City, Is
OF the industrial board. and
the other two members are J. A. Ken
nedy. OF Sault Ste Marie, and Ora r.
Reaves. OF jackson Richard L.
Drake. OF Detroit, is secretary, and
the hoard will soon open headquarters
in the Oakland building in Lansing
The salary OF its members Is *S'SoO
per year.
while II Is expected that the EN-
ployers WHO will be first in electing
TO come under the provisions OF the
new law will be those whose EN-
ployes engaged in the more haz-
ardous occupations. the law Is by no
means limited 10 these classes IL
will apply as well TO messenger boys,
Office clerks. store clerks, BARRIERS
and all employees except domestic
household servants and farm Iaborers.
But accidents are, of course, unusual
among the less hazardous occupa-
lions. and an employer might run
along for years without electfng TO
come under the provisions OF the new
law and without suffering any serious
he would find himself at the latter's
mercy when the case went into