The labor world. [volume] (Duluth, Minn.) 1896-current, 1912-08-31
GERMAN INSURANCE SYSTEM
DEFENDED BY DR.. FRANKEL
Assault Upon Worlds Greatest Insurance System Effectively
Answered by Expert Fredericksburg Criticised
State Insurance Has Not Been Tried.


| than the old one was.
Ih1s, however, to our mind does
not reflect in any way upon the un-
DERIVING principles which have been
| developed in the German system.
PROBABLY from time to time new
amendments will have Ito be incor-
porated In, the law to meet existing
conditions. 1t has taken Germany
70 years to bring this legislation to
It's present standpoint and it will prob
ably take rs years more until this
legislation will be satisfactory to all
concerned ~,
That there is demand for legis-
latlon OF this kind and that 1t is
meeting the requirements of the
working element: in Germany is best
indicated by the fact that in. Deem
oer' ISL, the Reichstag passed a new
compulsory law for so-called "An-
sestellte' CLERKS, etc.,. Under this
new law all individuals with an in
come of less than 5000 marks per
annum and not included in the pro-
VISIONS OF the previous law will be
compulsortly insured against old age
ana death. Without going further
into detail at present it will be suf-
nc1ent to. say that approximately 81
per cent Of the employees income and
similar contribution on the part
OF the employer is to be paid into a,
central fund, to guarantee an annuity
to the employe when he is IS years
or In case OF total or permanent dis
aointy at any age and to provide that
az MS death, an annuity shall be paid
10 MS widow during her life time and
to his children. until they are 10
years of age.
1T Is impossible in the space allot-
ed here to discuss DR.. Friedensbure's
crltlclsms In extenso. Possibly moth
ing will better illustrate the spirit.
one: might almost say animus, with
"n1cn DR.. Friedensburg has ap-
preached his subject, than his refer
ence to the fact that the number Of
accidents grows. with monstrous
speed, that "in. 1886, 1o0,15s acct
dents were reported and
In 1908, 662,321 accidents were re-
ported. One would be led to believe
from this statement, as DR.. Friedens-
ourg states, that there had been a
Itrlghtful increase in the number of
read or simulated accidents If it be
remembered, however, that in 1885.
5,z51,336 individuals were ins,,rai1
against accidents and that in 1907.
21'172, OF individuals were insured
simple arithmetical calculation will
at once convince that there has been
practlcally no increase in the number
OF accidents per- thousand individuals
insured. As matter of fact. there
was In 1886 1921 accidents per thou
sand insured ana in 1905 27.97 acct
dents per Thousand insured. The IN
crease is surprisingly small in view
or the fact that at the time the law
was instituted there was no accura+a
system OF: reporting accidents and
A1any Workmen were unacquainted
with their rights under the law.
Under the German law the sick
ness insurance societies care for. m
5ured members during the first IL
weeks of intapacity due to accident.
The tendency of late years has been
TO shift this cost; from the sickness
associations to the mutual trade as
sociations made up of. employer. In
some instances, the employers as
soc1ations have assumed this burden
voluntarily. Thi is mentioned to *
plain Dr.. Friedensburg's statement
that in 1886 10 per cent of accident,
were compensated, whereas, in 1908
Il per cent OF accidents were COM
pensated: Even as It is, the trade
associations compensate only about
one-hfth Of those injured in the year,
the other four fifths being carried by
the sickness insurance societies which
are largely organizations of the work.
men themselves and toward which
they contribute one-half of the pre-
MUM charges. . .>'''
'Dr. Fredericksburg has utterly ir-
nored any reference to other import
ant statistics in connection with the
accident insurance plan. The follow
ing %hgures are significant in this re-
|spect. In 1888, out Of j 100000. in
5ured workmen; there were IS: ia.
ta1ities and in 1908 only SO fatalities.
No alarming increase is shown here.
On the other hand, there were Fl in
div1duals per 100000 totally inca
FACILITATED in 1888 and only 4 per
100000 In 1908. I believe that not
even DR.. Friedensburg will deny that
this remarkable decrease in the num-
Der of individuals permanently inca-
FACILITATED is directly attributable to
the German accident insurance;. sys-
tenn. The scheme as it is In for:e
Erequfres the employer through pres
sure brought about by the mutual
trade association to which he belongs
to install safety devices of ali kinds.
and to Introduce into his factory or
mill every known safeguard for pro-
tecting the lives Of his employees.
against accidents II the law had
done nothing more than this, !. it's
value would have been amply demon
strated. In fact, it is conceded by
authorities on the subject that the re-
markable valuesof the German sys-
tenn is compared with other contin-
entail systems depends primarily up
on the fact that under It the need
arises on the part Of employers as
matter Of business economy to
modernize their plants by the instal-.
lation OF every possible safety device.
The individual employer who does not
do this. who is negligent Of his en-.
ployes, welfare pays.3a proportionate-
~ higher premium rate; and IL .hc.
If<,&4 ~ NJ 5.@s. . :