The Detroit times., 1912-11-27
SIS EMPLOYERS
PASS LIABILITY
UP TO THE STATE
s----4--as--. ---~
Fake Advantage OF Clause in.
Compensation I.aw-S.00O
Employees Represented
INSURANCE DEPARTMENT
HASCREATED BUREAU
Immense Saving Would Be Rep
resented II All Employers
Grasped Opportunity
Immense Saving Would Be Rep

LANSING, Mich, Nov. 27-- lspe-
cial. )-Employers Of Michigan who
have ayailed themselves OF the option
Of the workmen's compensation law
that gives employers che right TO have
the insurance commission administer
the law for them, are receiving their
frat premium statements from lnsure
ance Commissioner Palmer.
ITp 10 the present time So employ
ara representing a combined payroll
81 over 5000 employees, have applied
10 the insurance department under
this option OF the law. This being
more than the number required under
the fourth option OF the statute, the
department Is following the mandate
~ the law and has established q
bureau for this purpose. The annual
payroll represented by these applica-
lions "a 81 $50, 900 and the premiums
10 be paid TO the department by them
will amount 70 $4,000.
This sum will be deposited with the
state treasurer, In the accident fund,
ma the interest on this will also be
credited TO the fund. The question OF
interest or income on this fund IL an
important one, and II will practically,
within 4 year. more than defray the
expense OF conducting the bureau In
the insurance department While al
present the law makes no provision
for the investment OF this fund In
Michigan mutual interest bearing
bonds. II Is the purpose Of the insur-
ance department to ask the next legts-
laturs 10 amend the law, giving the de-
partment and the state treasurer au.
thority to invest this money In this
way
Al the rate charged by the insur>
ance department compared with that
quoted In the stock liability com
panies. the premiums to be paid TO
the department represent saving to
the employers OF over $4,000. This
includes all liabilities Of the members
or this bureau, including funeral bene-
Ate. but excepting medical and hospital
services which the law provides shall
not BE paid By the bureau, but must
be paid BY the members individually,
and which can be carried BY the mem
hers at much less expense than BY
any outside party, At this ratio OF
cost. n the entire 5000 employees OF
the state who have under the law had
availed themselves OF this fourth op-
ton. Il would mean q saving to them
as the situation stands today--less
than so days since the law took effect
of approximately 100000, leaving
them To pay out Of this saving. the
cost az medical and hospital service,
While this saving would be the re-
suit OF the rates quoted In the man
nal of the stock companies II all the
employers had availed themselves Of
this option or the law, q large major
ity have failed 20 take advantage or II.
effect that the rates charged By the
Insurance department are not ade-
Quate, but when. viewed In the light of
the cut rate premiums offered BY
some Of the stock companies, some
OF which are lower than the rates
offered BY the department, II IL claim
ed that the rate charged by the state
win not only be snficient to meet la
biiities. but will leave q fair percent
Rge for credit on next years premiums
Of the subscribers to the bureau plan
When this matter was presented to-
Commissioner Palmer hs- declared
that the stool companies by their re-
duction IN rates under their manual,
have absolutely satisfied him that the
rate charged by. the bureBu will be
adequate. When. his attention was
called To circulars attacking the
states plan, be, replied that the state
was not entering into competition
with anyone for this business, but
since under the law ne Is Obliged TO
establish this bureau In the depart
ment, be proposes to give the people
the mil benefit. Of II he stated fur
ther that since his attention had been
called to the violent outbursts Of OPP
position from certain companies en-.
kaged In this class OF business, ne was
really convinced that there was con
siderable merit to the states plan.
The department IL open to ali emf
pIoyefs IN Michigan who desire to
avail themselves OF this feature, bat
will not solicit hnslness. The state
board Of health and state labor bureau
will cooperate with the insurance de.
Darfmont IN supplying information re-