Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-19
WGRKMEN'S COMPENSATION

community, We are glad To say, and there is good
reason TO believe that the present legislature will
pass a compensation bill. ..-.. . -. .:...
As the Star Bulletin pointed out when the
first signs Of opposition arose Hawaii cannot af-
ford to take the altogether antiquated attitude
that workmen's compensation is not sound
economic plan. One has only to follow the trend
of mainland legislation to see tGe state after
state is passing employers liability acts of one
kind or another, and to realize that the differ
ences now are not of principle but of method.
Within the last few weeks Pre- sident Taft pro
mulgated a workmen's compensation law for the
Canal Zone. Reference has already been made
In these columns to the fact that more than fiji
teen states have spread similar acts upon their
statute books One and all, they have realized
that industries ought to bear the cost of the in
juries inflicted upon those engaged i'm the work,
just as industries now bear the cost of accident
to or depreciation of the machinery. This funda-
mental principle is admirably stated in recent
number of the Outlook as follows:
When a machine is injured in the course of it's
the owner of the machine bears the of the
injury and charges to the expense of production,
for which he receives payment as he sells his goods.
When, however, workman is injured in the
OF his employment, the cost of the injury upon
him. who i-afford to bear IL; and if his injury
is serious resulting in long ncapacty for work,
In DEATH his family is drafted into that great army
of dependents that is reproach to civilization.
There is reason that common sense accept
why the cost in human efficiency and human life of
the production of the things that people should
not be charged to the account of that production,
Just as is charged the cost in injury TO machinery.
The Outlook points out further, it is fair TO
say, that in New York state the law has been
held unconstitutional, though the judges de-
clared legislation of the kindsis greatly needed
1t is by no means certain, however, that such a
law would he declared uHcoHstitational in Har
waii, and in any event the New York decision has
not and should not be accepted as an argument
against the general principle of workmens COM
pensation legislation.
The Outlook's summary of legislation of the
kind states that the present trend is toward Civ
ing the employer the chance to choose between
yariofs kinds of funds from which the compen-
satory payments are to be drawn, For instance,
four possible ways of providing the fund are Civ
en-, as follows:
First each employer may reserve portion of his
income out of which to pay his employees. This
of is possible when the employer is great
corporation but 1t practically of the question
with the small employer, who would find it impos-
sibe to meet the cost of serious disaster suddenly
occurring. Second number of employers may join
in establishing common compensation fund, thus
carrying on for this particular purpose process of
mutual insurance. Third, the employers who choose
to act in accordance with compensation law may
be required to take out insurance in private liability
companies There is great objection to this espe-
cally on the part of organized workmen. The rea-
sons for this objection that these liability
panies have interest whatever in the relation be-
tween the employer and the employees, and
therefore likely to disregard all the human element
that the employer would take into consideration;
of these liability companies have, at least
in the past been guilty, like some other corpora
tions of sharp practices in order payment of
the insurance; that the cost of the agents
essary for the securing of business adds unneces
sarily of the insurance, and therefore sub
tracts from the amount that the workman otherwise
might receive. Fourth, the fund out of which COM
pensaion may be paid may be administered by the
state, each empIoyer-and possibly each employe-
contributing his quota to the fund.- the disbursements
being made by department of the government.
The Outlook suggests that perhaps good So
luton of the problem would be a bill establish
ing a compulsory compensation system with
these four optional methods as to insurance. +"
One of the vital questions, of course, in any
compensation act is the amount of compensation
allowed In view of the local interest in the sub
iect the following summary of various plans is
appIicable We have summarized first, the COM
pensation allowed in the bill proposed by Sen
ator Writ, secondly, the compensation allowed
in the Panama canal act, and thirdly, the amount
allowed in the model compensation act drafted
. NV the Conference of Commissioners on Uniform
State Laws, body which has done much to pro
mote wise uniform Legislation. -.
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