The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-29
COMPENSATION ACT
Is LAW WEDNESDAY
Gov. Glynn Issues Statement
Calling Attention to Its
Good Features.
SAYS ITS COST Is LOWER
Compares Its Workings With
the Similar Bills In Opera
ton i'm Other states.
SAYS ITS COST Is LOWER

ALsANY. Tune IS New Yorks work.
mems Compensation law goes into effec,
Wednesday Gov. Giynn, at whose direction
the present law was drafted. rs contden.
that II will prov. its worth both TO en-
rloyer and employee when put into actual
operation, In response to various in
qulries which have poured into the EXeCu-
tive Chamber the Governor gave OUT the
following statement last night.
"on the surftcc II would appear that
the compensation Insurance will cost the
New York employer moro than IT costs
the business man Of other states where
compensation laws are in operation.
ut II true that the schedule Of COM
pensaton to injured uorkmen fixed by the
New York law If slightly higher than the
schedules Of various other states; but II
is not true that this difference is to he
found In the actual cost OF Insurance to
the employer.
New York not only has regulated the
amount which injured vorkmen shall re.
ceivs but II also has rcgultt ID. through
u Insurance department. tnc rate whicn
Insurance companies may chairc the EN-.
ployer.
INSTEAD VI permitting the insurance
companies to add 30 per cent. for over
head expenses 10 the premiums they
charge, II has limited the overhead charge
10 80 la per cent. In addition II has
created n state system NJ insurance with
rates So. per cent lower than the rates
charged by the insurance companies.
u have caused compari e. no
made ri the rates charged Immediately
after the passage OF compensation laws
IN New Hampshire, Illinois New Jersey,
Wisconsin, California. Kansas Michigan.
Massachusetts and New York. In All OF
tnese states workmen's compensation laws
are IN operation. out OF iiS different in
dustries the New York rate is tho lowest
IN forty-slN induStrics. IN several others
~ low as the lowest and In only six indus
tries is II higher. than that with which
other States started.
ITO take few examples Tho rate
charged the manufacturers OF firearms was
LIB In New Hampshire, Los in Illinois.
i.?5 IN New jersey, 1.'5 in Wisconsin. /. 75
in California. "a in Kansas las In
Michigan. l.25 In Massa chusctts and Is
only 81 in New York.
In furniture f0ctories tho rate charged
in New Hampshire was $50. in New Jcr-
sey 200 In Wisconsin $50. In California
2.s0-in Kansas 3.os IN Michigan eco, ia
Massachusetts so and In New York is
only 1i6.
In glass factories the rate In New
Hampshire. was Lila, in Illinois lsa, in
New Jersey LIS. in Wisconsin, l75. iir
California, hes IN Kansas 1893. In Michi-
gan' las, in Massachusetts LIS and IN
New York is oniy-.Si. $50
The list from which am quoting is
not list specially prepared to show New
York In the most advantageous light, but
list OF industries which was made the
basis 'of comparison, by a commission
which went abroad to study the subjec,
81 workmen's compensation and as I said.
in cny six Of these IFS industries are the
as IN New York higher than the
rates adopted in eight other States when
their compensation laws went into effect.
when tho matter OF rates was first
taken UP by the newly organized commits
sion II was decided to use the accident
losses paid 10 Injured workmen In Massa-
chusetts under the compensation law rs
a basis for the rates under the New York
compensation law.
THE insurance companies and tho ac-
tusrias ~ the workmen'a compensation
commission at first urged a differcntal
Of $50. This seemed TO me to BE- too high
and after consultation with various ac-
tusries and insurance experts I decided
that the diffcy.ntiaL could be reduced 10
200 with entire safety.
"Fxpressed in terms Of dincrentials this
does not seem much OF a reduction, but IN
actual dollars and cents Il means a saw
ing Of from 81 600, 900 To $50, 600, 900 for
The employers Of New York.
"Just as the other States were able ~
reduce their rates after experience had
shown that II was possible to make a re-
duction, New York should he able To make
a further cut when 1t has actual fact,
and figures to guide IT.