Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-21
URGES
GERMAN Plan
COMPENSATION
George K. Vending Gives De
tails of Workmen'S Compen-
sation Legislation

company, ana HOW III Iris CITY, Is re
garded as one of the eountry's experts
In workmen's compensation and en-
ployers' liability insurance, and with
this question before the present leg
islature, an address delivered by him
before the National Lumber Manufac'
turers' association is OF unusual inter
est.
Mr.. Vending strongly opposes the
American plaa, and employers liza
bility in, general, which he calls Eek
perimentaF and as strongly advo
Gates the German plan. In his ad
dress he went into both plans thor
onghly. saving in part:
The German government has insti
stutej a process by which employers
and employees administer their acct
dent insurance fund, which in ouI
country could be administered by an
Insurance commission which should
have authority to rate each hazard OF
every nature and character known ia
experience, to establish uniform com
pensation for the injuries sustained
For example, the employe is q work
man operating machinist's lathe
and the insurance rate is fixed at y
of per cent on the monthly pay roll;
thus, If the wage is 81 day. equals
for Is days S100; u of Z per cent
equals 80 cents month. The EN-
plcye pays one-fourth as much, equals
1914 cents month. Fund remitted
monthly to the state treasurer for one
mans wage, including employers
share, 621s cents month.
The fund thus created Is remitted
to the state treasurer monthly from
all the Industries in the state. 1t il
beyond the control of corporations,
firms and individuals, and is useful
only in case of injury; the employe
does not look to the employer, but
both employe and employer look to
the solvent fund for relief when the
workman is injHred-the time of his
greatest need.
Classification Of Risks.
"Ail kinds Of work have been classi.
fled and rated about 10 per cent
above actual needs. subject to such an.
nuai change In ratings ias may be
found necessary by experience. and
the burden is thus placed upon both
the employer and employe in q man
ner so just. and equitable that. the sys-
tenn is gladly welcomed by both. II
provides, the cheapest possible cost Of
Industrial accident insurance for the
workman, encourages both employer
and employe to strive for the greatest
safety in the workshop, thereby re.
ducing the cost of insurance to both
employer and employe to the lowest
minimum and making for the maxi
mum of efficiency, and enabling both
workman and employer to operate In
that intimate harmony so necessary
to success. What is the argument?
What is the proof? And what are the
answers?
Causes of Accidents
''The experience of the Germans in
dicates that seventeen per cent. plus
of accidents are caused by the care.
lessness of employers, twenty-nine per
cent plus of accidents are caused by
the carelessness of the employees and
ten per cent plus to the fault of en-
p1oyer and employe jointly, and forty
three per cent plus to the hazard OF
the industry.
Hence it follows that If the EN-.
ployer causes seventeen per cent plus
of the accidents and stands seventy
five per cent of the amount paid into
the fund and the employe causes
Twenty-Five per cent plus of the acct
dents and RENTS through his EN-.
,ployer one-fourth as much, that the
employer bears disproportionately
heavier burden than the employee, but
both have performed an agreed duty
and all is well. When an accident oc-
ours this is what happens:
Serious Defents in American Expert
mental Methods.
Our methods generally contain,
among other serious defects, the par
ticular one that, in the case of the
death of the workman, the claims
against the employer may run in favor
of the widow and the orphan for pc
Rod not exceeding five to fifteen
years; generally speaking, the object
being to properly care for the widow
ynd the children of tender years All
well intended, but how does it work
Gut? Let us see.
81. The employer is vastly respon-
sible and permanent cOneern-aH is
well.
%. The employer Is small-busiress
gets bad-the firm fails because an in
solvent debtor; widow and orphans
are out in cold.
81 Firm wants to retire from bust
compensation outstanding to wi
dow and orphans prevents. House
may not be quite highly commercially
moral; outstanding claim or claims
large, assets begin to disappear, house
makes an assignment, widow or wi
dows and orphans cannot collect;
again Germany, by her large expert
ence and scientific methods, proves
tho co,n1nocc nf hoy~ yynrl-nonsc