The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-20
INDUSTRIAL ACCIDENTS.
Mr.. r. Tecumsch sherman on the Cost
Under the COmpensatien Law.


Under the C0mpeusatien Law.
To THE EDITOR or The suN-Sir;
have read with Interest the letter In THE
Sun OF February IL from Henry w.
Odion relative to Industrial accidents.
Mr.. odlon suggests that from the New
York and Massachusetts, data collated In
lis letter employers can begin to calculats
the cost pr Industrial accidents In this
state" under our recently enacted work.
mems compensation law. In my opinion.
however. Mr.. Odion has In that letter made
one statement which. although substan-
tally correct. may lead employers to mis-
calculate the cost Of the New York law.
He says: Employers 10 New York must
provide for payments to be based on two
thirds OF the average weekly wage" In
my opinion this statement Ia apt to convey
to the average mind an incorrect construc-
ton OF the New York law.
That law. In section IL. provides that
the basis upon which the compensation Of
an injured employee shall be computed
Cat &c 2-3 per cent? shall be. generally,
1-b2 OF 800 times his daily wage. That
method OF computation correctly approx
mates the average weekly rate of wages
at which the workman was employed; but
It should be noted that Il does not give
the average weekly earnings, which there
fore should be distinguished. 1t In the
general purpose and intent Of the COM
pensation law that the employer shall pay
TO his injured employees some fixed pro-
portion. generally so per cent, but In
New York 66 2-3 per cent. OF the wage
loss resulting from tho injury. That loss
In the case Of total disability will be the
amount of tho wages that the Injured
person would have earned In the future IL
not injured But In practice II IL neces-
sary to take some past quantity whether
earnings or wages as the basis OF compu-
taton. The general rule Is to take past
earnings as the basis but the New York
law takes an arbitrary multiple OF daily
wages as tire basis, whether the Injured
person has earned that number Of days
wages or not. For the Industrious wage
earners who are employed In continuous
occupations there 10 little II any diner
ence between tho results OF these two
different rules. hut for those who work on
the average less than 400 days a year the
basis adopted In the New York law will
yield n much higher rate OF compensation
than would the basis OF annual earnings
And the result will be that for many
laborers and classes of laborers who
average less than 800 days work a year
the compensation provided will amount
not to sc 2-3 per cent. OF their ordinary
earnings but 10 between 90 per cent. and
i20 per cent thereof, depending upon
variations between the actual average
earnings OF the individuals affected.
This probable excess Of compensation
over earnings will be further increased In
cases Of permanent total disability. The
New York law provides for lie pensions
In such cases II is estimated by some
German authorities that q pension =. Of
Sc 2-3 per cent OF average earnings, con-
tinued regularly until death. without lapse
or reduction on account q! causes which
usually reduce or interrupt wages. Is
pretty closely equivalent to 100 per cent
49, -. til, H.,y
earned during the period OF his life after
the accident IL he had not been Injured.
n that estimate be anywhere near cor
rect then where. as in New York. the
basis OF computing the compensation is
wages instead OF earnings such life pen
s,ons for workmen who do not ordinarily
work 400 DAYS n year will generally APP
proxinate 100 per cent. frequently 1870
per cent and occasionally 200 per cent, OF
what they would have earned II not
injured.
Consequently the New York law in .
very large proportion of cases will pro-
vide for the injured not compensation
an equitable proportion OF the wage
loss. but full damages and IN a smaller
but nevertheless large proportion OF cases
II will provide great deal more than
full damages In other words. II will pro-
vide dangerous overinsurance and make
Industrial accidents frequent source OF
profit for the working people And this
without regard to whether their injuries
are due to their employers or TO their
own faults Workmen's carelessness will
be subsidiHej; and abuses and imposi-
tons will be surely. although slowly. prop
aeated. Disregarding for the immeda tc
future these incidental abuses. which may
not develop for some years, II is "A con-
sentative estimate that this law will cost
employers well over twice rs much as
either the Massachusetts or the New Jer-
sey law. But later. when those abuses
have developed, Il II probable that this
law will cost close 10 three times what
the more conservative and equitable COM
pensation laws cost.
In my opinion, consequently, when en-
ployers In New York begin to calculate
the cost OF Industrial accidents under our
new law they will he most disagreeabiy
surprised for that cost will far exceed
anything that they have ever dreamed OF.
And when the evil consequences inevitable
from gross overnsurance have developed
the working people also will And some dts.
agreeable surprises awaiting them.
=. TEcUMsgH SHERMAN.
Egw YORK, February 10.