The Bridgeport evening farmer., 1913-12-17

Der of the last General Assembly, is as follows:
 Take the case of a contractor who employs ten men in the erection of 9 steel frame, a bridge, a smokestack caisson work, or the excavation of Q tunnel, loading and illuminating cart ridges, or other hazardous work, and it is not difficult to imagine an acci- dent that will kill half of them and permanently disable the rest. Tn that case the possible loss to the employer would be $32, 900. There is much to be said in support of the proposition that he should have surplus equal to the largest possible loss he can sus- tain. On the other hand, it may De said that the possibility of a. total loss is so remote, even in the case of an employer of a small number of men, all exposed to one hazard and that an extreme one, that one-ha1f of 2,00o would be a sufficient reserve or sur plus to meet any loss that could hap pen in one case in a thousand. One half might be enough for practical purposes if 1t were not for the fact that the employer may not succeed in business and that his surplus may within a year or two from the time IL is accepted so diminish that he will not continue responsible, for the losses he may incur in occupationa1 injuries That also should be taken into account in all cases and a requirement. TOT a further surplus made to meet that contingency and it should be reviewed. from time to time to see that the eu1- ployer continues solvent within the meaning of the statute, because he may incur losses that he will not sat- isfy for many years There are reasons why the requirements should not be reduced one-ha1f, one of which is that if the loss occurs by fire, the wreckage of the plant is never fully covered by insurance. The ob- struct1on to the business involves a further loss and for these and other reasons the solvency of the employer is impaired far beyond the impair ment caused by occupational injuries for which he is accountable.
 A manufacturer writes: 'EYour sec ond question Gas to. how to determine financial ability) is a poser. I have been trying ever since the hearings to- figure out how the company of which I am an officer could satisfy your commission as to our ability to pay so that we might carry our own insurance, and have about come to the conclusion that until such time as these matters are adjusted ana clear interpretation is put upon the law, and if possible amendments, that we should feel required to insure as we do for our plain liability insurance at the present tine.
 And another writer says: The mere fact that an employer proves to you his solvency at a given date is no guarantee that he can meet the ob- legations which might fall due at 9 much later date.''
 An official of the Michigan indus trial accident board writes: Less than 2 per cent. of the Michigan employers are carrying their own risk, and less than half of those who apply are gtv- en such permission. Our experience of one year has taught us to be ex- tremely careful in giving to any con- cern the right to make payments di- rect to injured employees.
 The pamphlet concludes as follows:
 ''The employer is in the position of prospective debtor; the enp1oye of a prospective creditor. The credit may extend over a. period of many years. It is the duty of the employer who seeks a certificate of financial ability to- furnish his evidence to the com missioner and the commissioner will receive and give due weight to any relevant matter which fairly tends to show the risk of the employer and his resources, together with proof of what he does or agrees to do in the mat ter of furnishing af und with which to respond to the demands which may be made upon him. The results of audits of his books, commercial re- ports, the opinions of those familiar with his condition, facts bearing upon the way in which he conducts his business, and the way in which his. risk is distrib uted among his employees will receive due consideration. The commissioners, with all of the facts of which those given are but illustra- tions, will find whether or not he fAay carry his own risk. In the discharge of this most difficult and delicate du- ty, the commission asks the aid and cooperation of the employers of the state.'