The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1913-02-27
MONOPOLY
is A MENACE
Dangers Of State Compensation
Insurance Shown
PLAN SHOULD Be ELECTIVE

| !" IomPei taxpayers 10
Pay Part Of Loss of insurance Is
Effort to Secure Cooperation Of
Employers In Shutting Out comoe.
tItion-Author Of Late Book Sees
Soeialistie Scheme For People to
Control All Industries,
| A took has just been published
Dy Alien r. Foote, of Columbus, en-
titled Compensation for Industrial In.
juries." In his comprehensive dis.
cussion of the big subject, these
pointed statements are found:
While the fact OF compensation in
surance Is compulsory, the method OF
insurance should be elective. subject
to the choice of the employer elect
ing to have his insurance written By
one OF the following methods:
(al A state liability board of
awards:
CD A stock compensation insur-
ance company:
(c) a mutual cooperative CON-
pensation insurance company:
Cd) Self-insurance by complying
with reserve fund requirements
All compensations for industrial in.
Julles and terms of payment should
be fixed by statutory law. and should
De identical for all compensation in.
surance by whomsoever written.
The method of accounting to show
all costs of writing insurance and
administration of the business of
compensation insurance, and TO
establish and verify tests of solvency,
should be prescribed by the state in.
surance department, and required OF
all writers of compensation insurance
authorized to do business in the state.
including the state liability board of
awards, in identical terms and with
out discrimination.
All costs of administration, and all
expenses of every kind and nature,
incurred by any writer of compensa-
t1on insurance should be charged to
and paid out of the fund created by
the collection of insurance premiums.
This is necessary in order that the
accounts of the state liability board
OF awards may show the true and
entire cost of insurance as shown by
the accounts of those writing such in
surance by either of the other meth
DDS. /
The state insurance department
should have power to prohibit the sell
ing of insurance by the state liability
board of awards, or by any insurance
company authorized to do business In
the state, at less than cost, or at
rates of premium that are insufficient
fully to pay the true and entire cost of
the business and to establish a re-
serve fund sufficient to make the pay
ments of every approved claim for
compensation for an industrial injury
prompt and certain. This is neces-
sary to safeguard taxpayers from be-
ing compelled to pay part of the
cost of compensation insurance and,
in case Of the insolvency of the re-
serve fund, from having public funds
collected from taxpayers used to
make up deficits. 1t is also necessary
to safeguard employers participating
in insurance written by the state
liability board of awards from being
required to pay extra or increased
premiums for the purpose of making
up deficit in the fund drawn upon
by that board for the payment of ap.
proved claims for compensation.
The proposition to compel tax
payers to pay part of the cost of
insurance. which should be paid by
the industry insured, is device to
secure the cooperation of employers
in the purpose to create a state
monopoly In such insurance. Unless
human experience is to differ in the
future from what it has been in the
past, employers who are caught by
this bait will find, when it is too late
to correct their mistake, that they
have paid too high price for the
privilege of having their insurance
written at temporarily low prem
ium rate through sacrificing their
right and power to elect by what
method they shall be insured. When
the state monopoly is established by
this method as is intended, employers.
though they may have the right, will
have no power to secure insurance by
any other method, as there will be
40 one engaged in writing such in
Vurance except the state.
A state monopoly in writing CON-
pensation insurance for industrial in
juries is an entering wedge being en-
ployed by socialists to secure state
control of all industries. The purpose
OF paying the operating expenses Of
the state liability board of awards out
of funds collected by taxation is to
enable that board to sell such in
surance at less than cost and by this
means to establish a state monopoly
by driving all competitors out of the
state. This unfair method of COM
petition, when employed by in
dustrial competitors, is denounced by
courts and popular opinion. Why
should it not be- denounced with equal
indignation when employed by au-
thority OF the state?
State monopoly established in COM
pensation insurance for industrial in
iuries will be one step taken on the
road to state ownership and operation
OF all industries.
Q