Norwich bulletin., 1913-12-11

retary to serve on nominal pay in order to reduce expenses and then to elect a number of others to serve as directors, also without pay. You will note that thus far there is only one well paid man, the organizer. But just as soon as you get under way you will begin to get reports of accidents. If you have the usual luck you will have about 80 accidents per thousand em- ployees per year. Not all of these will be serious. Many will need only one visit to the physician. but every one will require on an average half a dozen letters and reports. There Is a report to the state. There is a report from the physician to be acknowledged. There Is an inspection of the physi- clans bill with a check for payment. There is a release from the injured man and a final report to the state that the transaction is closed.
 Cover Entire Liability.
 But there is another feature and a far more serious one, The state says to you. No policy of insurance under part B of this act shall be made un- less the same shall cover the entire liability of the employer hereunder .' Now, gentlemen, there is nothing in the insurance world exactly like this. In the case of fire insurance the company knows the exact limit of loss and can keep the hazard to relatively small pro- portions in a single exposure. You well know that the largest fire com Danies limit their hazard on any one building to a relatively small amount. Here there is practically no limit of loss. If there are two hundred en- ployees in a building and the building should collapse and kill half ot them the insuring company might have to pay $320,000 in death losses and as much more for totally disabling in juries. The largest and strongest cas- ualty companies in the world might well stagger under such blow. Two or three in succession might render them bankrupt What happens in the case of the Mutual?
 You are partners in the concern and your liability is unlimited. An assess ment must be laid to cover the losses and this assessment can be collected from you by process of law. If some of the members of the association are bankrupt and unable to pay, youS goods can be seized and held to cover the debt The amount of the original assessment cuts no figure. The total indebtedness must be met by those who are able to pay. Membership in an assessment or mutual company, therefore, is not a protection to your credit. It becomes a very serious lia- bility, a liability which every banker must take into account when you ap- ply to him for accommodation.
 How Casualty Co. Works.
 You may ask how the casualty com panies dare assume such risks? The question is a fair one and the answer is that no solvent casualty company in the world would dare to assume a large risk alone. The solvent and con- servative casualty companies have formed what is known as the Work mems Compensation Bureau" Its ob- ject is twOfold. First to provide a satisfactory and standard system of in- spection and second to provide for re- insurance. These companies bind them selves not to accept more than a cer- tain comparatively small hazard on any one risk
 It is hardly necessary to go into the subject of self insurance No sane concern will attempt it. To begin with the compensation commissioners can not allow self insurance unless the concern applying can deposit a large sum with the state as security and also that the risks are widely sepa- rated. You will see the wisdom of this at once. If fatal accidents or total disability occurs the self insurer is bound for a period of ten years. What banker would discount the ten year notes of the best concern in the state
 Eliminate Ambulance Chaser.
 The law. we hope. will practically