New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-29
'CLYNN PRAISES
COMPENSATION ACT
Assures Employers New
Law Will Work No
Hardship to Them.
MANY CONCERNS
STILL DOUBTFUL
Seek to Ascertain Rights Under
Statute and Await Future
Results.

Statute and Await Future
Results.
Effects of the new Wof&men's Com
pensetion Act, which will go into force
in this state Wednesday, are being felt.
Many corporations which are large en-
ployers of labor have within the last
few weeks taken steps 10 decrease their
expensive corps of legal experts who
have defended actions brought against
employers by workmen injured while
laboring at hazardous tasks. Employ
ers generally are somewhat fearful as
to the results of the new law and are
preparing TO ascertain just what their
rights are under the statute.
In response to inquiries which have
poured into the executive chamber at
Albany, Governor Glynn yesterday
gave out the following statement:
"There is no surer way to inture the
laboring man than to injure the INDUS.
try in which that man is employed, and
from the inquiries which ] have re-
ceived it would seem that many en-
ployers are afraid that the Workmen's
Compensation Law will prove a hare
ship TO the industries OF New York.
"This is an impression which desire
to correct at the earliest possible mo-
ment. ] don't want the business men
of New York to feel that The state has
saddled them with an unjust burden,
or that it has placed them at dis
advantage in their competition with the
industries of other states. On the sur
face, it would appear that the COM
pensation insurance will cost the New
York employer more than it costs the
business man of other states where
compensation laws are in operation.
Cut Overhead Charge.
7 at is true that the schedule of COM
pensation TO injured workmen fixed by
the New York law is slightly higher
than the schedules Of various other
states. but it is not true that this diff
ference is to be found in the actual
cost of insurance to the employer.
New York has net only regulated the
amount which injured workmen shall
receive, but it has also regulated
through it's Insurance Department the
rate which insurance companies may
charge the employer.
"Instead of permitting the insurance
companies to add so per cent for over
head expenses to the premiums they
charge, it has limited the overhead
charge to 80 1-3 per cent. In addition
it has created a state system of insur-
ance with rates SA per cent lower than
the rates charged by the insurance
companies.
AZ have caused a comparison to be
made of the rates charged immediate
ly after the passage Of the compensa-
ton laws in New Hampshire, Illinois,
New Jersey. Wisconsin, California,
Kansas, Michigan, Massachusetts, and
New York. In all of these states work.
mems compensation laws are in opera
ton. Out of 1t8 different industries
the New York rate is the lowest IN
forty-siX cases. In several others 1t IS
as low as the lowest, and in only SIX
industries is it higher than that with
which other states started.
"To take a few examples, the rate
charged the manufacturers of firearms
was 1.13 in New Hampshire, 1.55 in
Illinois, 1.25 in New Jersey, LIS in
Wisconsin. It's in California, 1893 in
Kansas, 1.39 in Michigan, 1.25 in Mas
sachusetts and only 81 in New York.
In furniture factories the rate charged
in New Hampshire was 100, in New
nJersey 200, in Wisconsin ESQ, in Cali
fornia $50, in Kansas 3.08, in Michi-
gan 2.2O, in Massachusetts, 1.80 and in
New York only 1.46."
The Governor also quotes figures to
show that the premium rate in glass
factories is about fifty points lower
than in the lowest of the states men
toned.
Employers Are Just.
"The list from which | have quoted"
continues the Governors statement,
"is not list specially prepared to
show New York in the most advan-
tageous light, but list of industries
which was made the basis of COMPARE
son by commission which went
abroad to study the subject of work
mems compensation. No fair minded
employer wants to take advantage OF
the man b employs. The average
New York t...Dioyer wants to be just
as we'll as generous. He wants to pro-
vide an employe, injured in the course
of his duty, with medical attendance
and to compensate the family OF the
employe for any injury to the bread
winner.
"On the other hand, no employer
wants to assume a burden beyond his
strength. In the swift competition OF
modern business no man is willing TO
handicap himself, and it would be
manifestly unfair for New York to
make compensation insurance compul-
sorv and then force the employer to
nav more than he can afford for in
surance. Consequently the same de-
sire for Justice, which impelled me TO
secure compensation for injured work
ers. led me to make a. fight for low
rates for the employer
"The insurance companies and the
actuaries of the workmen's compensa-
tion commission at first urged DIFF
ferential of 2.63 per cent. This seemed
70 me to be too high and after con-
sultation with various actuaries and
insurance experts | decided that the
differential could be reduced TO 2.OO
with entire safety. Expressed in terms
of difrerentials this does not seem
much of a reduction, but in actual dol.
lars and cents it means saving OF
from SfO,000,000 to S20,00O,OOO for the
emnloyers of the state. Just as tne
other states were able 20 reduce their
rates after experience had shown them
that it was possible to make reduc-
ton. New York should be able to make
a further cut when it has actual facts
and figures to guide it,"
Governor Glynn further explains
that the law was not drafted by the
friends of labor or the friends of capt.
tai. but asserts that it was evolved out
of conferences between bankers, ousl-
ness men, lawyers. insurance actuaries:
labor leaders and representatives oil
various Chambers of Commerce.
Bureau Is Organized.
He points to the fact that the insuT-
ance companies have created bureau
10 investigate the conditions existing