Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1912-02-09
Workrnen's Compensation

interests stand such charges? The !
large aggregations of capital probably
can; hut how about the small employ
er? The experience in Germany and
England tells us that his business is
jeopardized. In the face of that ex-
perience, are you willing to see his bust
ness suffer? Are you even willing TO
take a chance on such an outcome?
Do not overlook the fact that while
we have at this time in this country
many large aggregations of capital.
yet they are nevertheless but a small
part of the total employing interests
and the small employer still repre-
sents the backbone of the nations
prosperity. The crux of the problem
rests on what he can stand; solve that
properly and the problem is easy of
solution.
A measure Of this kind bears most
heavily and oppressively upon the
small employer in the hazardous lines
of industry; contributions to the vari-
GUS kinds of insurance required TO pro-
tect his business cause a much heav-
Ter percentage Of running expenses and
consequence reduction of profit so that
if long persisted in it drives him out
of business. The large employer with
ample capital at his command can
meet extra expenses of this kind much
better than the small employer. The
margin of profit for the latter is small
al best. and when you encroach upon
that by imposing unnecessary obliga-
| tons the incentive for continuing the
business is gone The inevitable re-
suit must be to compel the combina-
ton of the smaller firms into larger
one; so the strange anomaly is pre-
scented on the one side of governmental
effort to prevent great combinations of
capital and on the other hand legisla-
ton which will force the small en-
| ployer into such a combination.
! We would do well TO pause before
/ blindly adopting measures of such far
reaching scope, without first ascertain
ing definitely that phase of it which
sensible men give 10 everyday affairs,
even of a minor nature, and that is,
/ what will it cost? Many of its advo-
Gates have given no consideration at
all to this part of the subject; in fact,
it would seem as though the whole
trend of effort had been directed to the
enactment of these measures regard
less of cost and needless of conse-
quences. When informed by insur-
ance companies of probable cost the
figures have been scorned. Insurance
protection is an absolute necessity for
small employers operating under a
workmen's compensation act; without
it the savings of lifetime can be
wiped out by a single catastrophe
arising through no neglect or fault OF
the employer. The approximate costs
submitted by insurance people amounts
10 many times what such protection
costs now; after the act gets in full
swing and effective working order the
cost, like a SNOWFALL starting at the
top of the hill, gets bigger and bigger
: as IL rolls along until il reaches sucl
= swollen proportions. that il must fin
| ally fall Of its own weight. The COS
= under workmen's compensation acts
= year by year. grows heavier; if W.
, take the actual experience in German!
and elsewhere as the criterion. and i
would be folly to do otherwise, thel
! we may positively conclude that tn,
! first years cost in comparison witt
later years is like a gentle summe
+ zephyr compared with destructive cy
? clone
1 II the results following the adoptio
Y of the measure were beneficial and az
). ded to the general welfare of the pee
5 pie and the nation, then in the interes
of the general good provision, in som
r proper manner, should be devised,
V possible, to meet the cost, even if bu
/ densome. But nothing of the sort 70
n lows its adoption. Read what d
IS Ferdinand Friedensburg. who for twel
n ty years was president of the senate {
e the imperial insurance office of &c
| many, in his essay last year on tn
G subject has to say; speaking with fu
and complete knowledge gained fro
his many years personal experience
the actual working and of the result
\ following from the measure he show
= an appalling condition of affairs. Ca
any thoughtful, sensible man. emplo
er or employe, with knowledge of II