El Paso herald. (El Paso, Tex.) 1901-1931, 1913-02-01
National League of Government Employees
Is Latest AmaIgamation of Working People
S Ward International TypgHPm
E1BE

. sense it has only begun, and the same
interests and influences that have
hitherto opposed compromising legfs-
latiOn are now lining up to secure a
law that viii do as little as possible.
that viii be as much of a Iafce and
futility as ingenuity can make it, and
that will prove another crumblng
Dead Sea apple in the grasp OF the
working classes.
Two bills are before the legislature,
based on contrary principles. In be-
half OF one the casualty companies
that expect to make large profits out
Of the new system are organizing.
These companies are drawing to their
assistance the short sighted employers
who want to reduce compensation to
minimum, and the business man who
is an easy victim when his prejudices
are appealed to. In behalf of the other
the labor organizations have spoken.
The organizations are drawing to their
assistance the employers Of larger Wis
ion and those Of social vision who
greatly desire New York to start right
in the new undertaking.
The fundamental difference between
the two bills is that one proposes a
state insurance fund, with the state
guaranteeing the compensation pay
ments and fixing for each industry the
contributions TO be made. The other
proposes that the insurance companies
shall be the payers Of the benefits,
shall assess the premiums, and be the
administrators Of the law in practical
~ every respect
Little doubt can be entertained as to
which system would better fulfil public
expectations and furnish compensation
that cOmpensates. The primary trouble
with the common law liability system
is that the benefits go principally to
the lawyers and in court costs 1t will
be some gain but not much If the in
surance company is Saddled on the in
jured workman instead Of the lawyers
~ - 10 -
that the insurance companies pay in
compensation benefits but a half or a
third OF the sums they collect in pre-
miums- The half or twO-thirds is alb
sOrbed in profits and expenses. The
manufacturer thinks he is paying for
100 per cent Of protection. whereas he
gets but from SO to so per. cent. for
them Benefits are necessarily small
and the prime object Of the cOmpensa-
tory system is defeated. This defect
of the private insurance plan seems
ineradicable. The companies must
have capital and get returns on it; they
must pay the expenses Of soliciting
business and these things are a first
charge on the benefit fund.
On the other hand, with a state fund,
the full premium payments, less per-
haps a small percentage, would inure
to the benefit OF the injured. The state
would not need TO set aside a capital
fund, for its naked promise and pledge
to pay would be enough It would not
be at soliciting expense. The manage
ment would be furnished by the insur-
ance department at small additional
cost Under the New Jersey plan, where
the insurance companies are outside
the compensation system, the cOmpen-
sation for total disability is IS mini
mum to SO maximum for 800 weeks,
or 81, 800 to $4,000. This is much less
than the workman in many cases OBJ
tains But it is all that is possible If I
from so to Sc per cent Of the gross 1
premiums stay with the insurance /
companies.
For many reasons it is not desirable 4
to have general state insurance, al I
though many are Of the opinion that 1
its economic advantages are so great 4
that ultimately it will be established /
Superintendent l1mmet in a recent ad-
1ress predicted its coming. If there is
2 form Of state insurance which is de-
fensible it is that which provides
against the accidents OF industry. In
surance against fire and even insur-