New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-24
new INSURANCE ACT
REMAINS A PUZZLE
Merits of Various Forms
of Protection Argued at
Merchants Assn. ,

The question as 10 which Of the
three forms of insurance, in stock or
mutual companies or in the state fund,
provided under the workman's COM
pensation act, which goes into effect
July 1, is preferable to employers was
by no means settled yesterday at the
hearing on the subject at the head
quarters of the Merchants Associa-
ton at 233 Broadway. The purpose
OF the hearing. as announced, was to
clear up some Of this confusion.
The advantages, as they saw them,
of each form of insurance were set
forth by Edmund Dwight, American
manager of the Employers Liability
Assurance Corporation of London;
Professor F. Spencer Baldwin. man
ager of the State Insurance Fund, and
John L. Train, of the Utica Mutual In
surance Company. A general discus
sion followed each address, and Pro-
fessor Baldwin, particularly, was the
target for many questions by mer-
chants and insurance men. There
were about 800 present.
Apparently there was considerable
Confusion" as TO the Interpretation
of the new law relative 10 insurance
under the fund and the guarantee 1t
offered to the insured from further
liability. Some of the questions put
to Professor Baldwin were evidently
framed by those who entertained
strong prejudice against the COM
pulsory compensation idea in general.
There was considerable uncertainty
expressed as TO whether the courts
would uphold the rulings of the Work
mans Compensation Commission. In
answer to these questions, Professor
Baldwin said:
"Some questions cannot be answered
satisfactorily until the act is passed
upon by the courts, because no man
can anticipate the decisions, but | DO
believe that the act will be broadly
interpreted by the commission and
that its rulings will be upheld by the
courts. If any employe, in an extra
hazardous occupation. prefers 10 take
his chances for compensation under
the common law in the courts, prompt
ed to do so by the interference or
some lawyer, | do not believe there IS
the slightest prospect of his case OBJ
tanning any standing in court. II
LAWYERS accept the act in good faith
there will be no need to attempt any
such action"
Professor Baldwin asserted that the
advantages Of the state fund insurance
over the mutual and stock varieties was
that il afforded real insurance
complete compensation to the employer,
relieving him of all further liability.
and at the lowest possible cost. He said
the established rates were l-3 per
cent less than those in the stock and
mutual companies. and that there was
no liability for assessment of the in
sured, as in the mutual companies. He
said il was the expectation of the fund
management that the present fixed
rates would prove satisfactory and ade-
Quste, though the law provided for a
readjustment of the rates at the end Of
the first six months.
"In comparison with other forms OF
insurance, the state fund offers abso-
lutte relief from responsibility" said
Professor Baldwin. land you can 20 TO
bed and rest easy as to your liability.
You may say that the possibility OF a
claim coming back TO the employer
from the stock companies is remote, hat
at the present time thirty Of the COM
panies in England writing workman's
compensation insurance are insolvent
because they failed to set aside an ade-
quate surplus.
81 have grave doubts regarding the
adequacy of the security in the mutual
companies. The mutual plan seems to
be one of dubious character under the
peculiar provisions of the new act. NJ
merous misrepresentation in regard to
the new law and the state fund have
been circulated, the commonest of
which is the assertion that those who
insure IN the state fund are open 10 as
sessment. Employers can rest assured
there IS no. possibility of that. and
nothing OF the sort is authorized under
the act"
In case OF catastrophe or some great
Calamity where the fund would not be
able to meet the demands upon il. il
would be up to the state TO make good
the speaker said. Some present doubt.
ed whether the state would see its
moral obligation" under such circum.
stances, and that the Legislature and
inc Court OF Appeals might take a dit,
terent point of vieu,