The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-29
THE CATASTROPHE HAZARD.
Remarks on the Possible Operation OF
the Workmen's Compensation Law.

To THE EDITOR or THE SUN-Sir: The
newspaper reports and editorial comments
upon the public spirited action of the
Merchants Association In giving hear
ing on the compensation law all seem to
have missed point which appealed to
mo. ] have waited to see IL some one
would say something about H. listened
as the representative OF n manufacturing
company whose light machinery. sewing
and circular knitting machines are held
by the commission in sending IL notices
to he in Group 3s.
Mr.. Dwight was very able and very fair
In presenting the case of the stock COM
panies. That interest, however. was fur
ther represented by hecklers and cls-
queurs, who were not so fair.
Mr.. Train was equally capable and de-
cent in talking for the mutual insurance
plan. He must have astonished TIE other
insurance men, though. by uncovcrng 50
frankly the secrets OF the game. lie ad-
United so much about the adequacy OF
the compensation premium rates and the
probable profits OF the business that the
eyes OF the merchants assembled must
have been somewhat opened.
Mr.. Train on the much Wanted "Catas-
trophe hazard" was iconoclastically illu-
minating. His calm assurance that the
| compensation law was not nearly so bad
as some people seemed To think was
backed by two mathematical demonstra.
lions which the merchants and the chron.
iclcrs az I have said, did not appear to
appreciate
He figured that the Bingham.on catas.
trophe. under the provisions of the com.
pensation law. could be taken care OF.
continuing obligations and all. by a capt.
talization Of little more than 100000.
outside OF catastrophe the extreme
possibility OF loss would he for the deaf IN
OF a workman whose weekly wage would
be the maximum Of 500 a week. and who
should leave widow at the youngest age
possible to have three children |. 2 and
. years old. This loss. Mr.. Train said.
could be met by capitalization OF n little
over $4,000.
Professor Baldwin, who spoke for the
state fund under circumstances Of disad-
vantage which he explained, made very
good impression with his evident sincerity
and his complete knowledge OF his sub
jcct. His greatest d disadvantage. which
he did not mention. was In the fact that
his official position compelled him to take
the hecklers seriously when he knew
that they were swinging catch questions
at him which they did not take seriously
themselves.
He knew and they knew more about the
real merits OF the matter than even Mr.
Trains figures had shown. lie knew and
they knew that even if a catastrophe
should occur early in the history Of the
State funds administration It's income
and resources would permit the handling
OF the obligations entailed beyond the
slightest doubt. The immediate" obli-
cations would find sufficient provision
ready because Immediate" In this case
means two full weeks to begin with for
the obligation to accrue. Then no one
could complain If few days more We're
required to pass upon claims and 10 ar
range for the payment Of the compensa-
ton. BY that time there would be ampi.
funds for these payments in hand The
continuing obligations would hardly
present any problem in view OF what we
learned In Mr. Trains revelations con-
corning the margin In the premium rates
for expenses and profits
II IL well to avoid getting excited and
to wait for a near view of the bugbears
set up to frighten the superficial observer.
I am quite unable to take seriously all
this talk about the bugbear % "catastro-
phe hazard" or course. If there Is an
other flood lot Of us will get pretty
wet, But even at that. there will he more
OF us saved than in Noah's time, for we
have so many moro big boats.
New YORK, June %. WILLIS HOLLY.