The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1913-03-20
STATE INSURANCE
LAW ! FAILURE
Seattle Man Points Out Flaws
In Washington System
GREEN MEASURE LIKE IT

PRESIDENT or Large constructor Com
pany Declares State Monopoly
Works Hardship Against Both EN-
ployer and Employe and Is Easily
Made to subserve Interests oi
SehemIng Politicians - Denounces
"LuIling" by Press Bureau.
Columbus, O.-(Special, THE state
of Washington has a compulsory state
fund law very much like the proposed
Green law now pending in the general
assembly.
The Washington law is an absolute
failure according to the testimony of
those who are conversant with its pro-
visions
Like the pending Green bill, the
Washington law gives the state a mo.
nopoly of the compensation insurance
business
The advice from Washington is that
sbaNC AlohOPOlS 10 "Oloo thdh plf
vate monopoly, because in the case OF
untairness in private monopolies the
state can and does step in and rem
edy evils. But with evils arising from
a state monopoly, where would the
safety valve be found? Is the query
from Washington.
". Paterson. president of the Seat
tie Construction and Dry Dock com
pany, writes Interestingly about the
Washington law. He knows about II
because he is on the ground and suf
fers because of its provision.
M. Paterson says:
1.-THE law is breeder of accidents
and unjust to workmen."
at is a tool for the INSCRIPTIONS
politician to menace business"
That is his general impression. His
objections to features Of the law are
even more hard-hitting. He adds
1.-THE freedom Of contract is abrdg'
ed. The state has established a mo.
nopoIy. II the state has superior
insurance scheme, il needs no monop.
oily. If it is inferior, it should not be
so favored.
1.-THE employer is entitled, and
should especially be in the state OF
Washington, to transact business sub
Iect to state supervision, but not state
control. He should not be forced into
the insurance business with which he
is not familiar. His business requires
that he be permitted to insure his
own risk, form associations with his
neghbors for mutual protection, or
buy his insurance in the open market
from licensed competitors or from
the state should the latter be engaged
in such business"
Menace to Business.
And then Mr.. Paterson makes a
charge against the Washington law
which can not help but attach to the
proposed Ohio law:
"When the commission Is furnished
a corps of doctors, hospitals, undertake
ers, auditors and claim agents cover
ina the entire state of Washington,
this branch of government will be the
prey of every INSCRIPTIONS politician.
The administration of the law is GER
tain to degenerate into a loose sys-
tenn Of compensating all claimants to
curry general political support. The
employer will be rewarded or punish.
ed because of his political affiIia-
tions."
Mr.. Paterson must be a prophet of
the old school. In discussing the mat
ter further he tells of condition eX-
listing in Washington that is in full
blast in this state right now, He says
"In the meantime every employer
is being luIIed into a feeling of secur-
ity by the press bureau Of the commits.
sion, which regularly publishes glow
ing accounts of this law. After few
years, there is certain to be a rude
awakening caused either by the Unit.
ed States supreme court or the initia-
tive and referendum. The result will
be a mass of personal injury Itga-
tlon."
The press bureau "lulling" is going
on in Ohio now and has been in ac,
ton for months past.
After real experience, Mr.. Paterson
says the Washington law is doing ex.
actly what employers and employees
prophecy the Ohio law will do
In Ohio neither employers nor EN-
ployes like the Green bill-only the
politicians are strong for it.