Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-11-26
NO COURSE OPEN EXCEPT TO
COMPLY WITH LIABILITY
LAWS.
INSURE AGAINST ACCIDENT
OR PAY OUT OF, POCKET
Rix Companies Holding Up Employ
r srs 81 state and Corporation 10 Inn
esrat;vs - Commissioner Garst Dis
eu..es WORKING Of statute-eood
Law When shorn Of Some Features.

Dea Moines. Nov. 2e.-"Do you favor
the state taking over all insurance &C
tivitiesrlife, tornado. hail-operated
by stock or mutual companies? was
asked Industrial Commissioners Garst.
Most emphatically. no." ne replied.
~ think the state has no business OF
disposition to encroach on any legiti-
!. mate insurance business in this state.
There Is. OF course, q moral obligation
on the state to see that the insurance
business. in general is conducted on
safe and fair plan. When the state
gives permission to any company TO
write insurance in this state such &C
lion should be prima fac!e evidence
that all reasonable safeguards nave
Seen thrown out for the protection OF
patrons and stockholders. we nave
had gold brick insurance In the past
never to return. I hope It IS my pc
lief that in the matter OF Workmen
compensation the payments are 10 pc
met not by insurance but by tax laio
upon the employer. The employer IS
placed in position where rs prudent
business man he has no choice but TO
provide for payment OF this compensa-
zion.
Employer Must Comply.
"Under the present law he is stood
In a corner, dsarmed and deprived OF
mis- common law defenses, and pre-
sumed to have been guilty OF negn-
gence, and is subject to exploitation by
the insurance companies. Having the
common law defenses reversed, 1t will
q
10 disprove negligence. Thus, while the
purchase of insurance generally Is
voluntary act. provision for workmens
compensation is involuntary. The state,
having enforced the obligation, should
be morally obligated to reduce the cost
TO the employ r, and at the same time
provide q reasonable compensation to
the employe.
In my judgment the amount
charged to the employer under exist
ing manuals has been and Is grossly
excessive, 1t having cost the employ er
from so to 100 per cent more than
\ 1t should at a fair rate. At the same
time, the compensation the law allowed
the injured employe is ludicrously
small. The compensation law was sup
posed to have been enacted for the
benefit Of the employees Of the state.
If this is true the first consideration
should be given to their interest. Next
to receive consideration should be the
employers Of the state. They are asked
to assume a new and novel relationship
with their employers In that they are
required to pay compensation irrespec-
tive Of the existence Of fault and so
should have every possible considera-
zion consistent with safety and a rea-
sonable compensation. You ask me
what is the cause of the movement on
THE part Of the insurance people.
understand they hold to the position
THAT the state has no moral right to
tuterfere with their business.
Not For State Insurance.
LAS far as know there never has
heen proposition in Iowa for the
state engaging in the insurance BUSH
ness. and l am forced to congratu-
tate the men who are organizing the
state Of Iowa against an employers
compensation fund. upon their sue
cess In working upon the credulity
of the thousands of good men In the
many lines of insurance who are at
heart anxious to do the big and help
yful thing needed to carry out this
laltruistic theory of compromising in
SJured WorkmeH. Again repeat, II Is
the duty Of the state, as it seems to
me, to pay every dollar Of the cost
Jof administration in order that 100
cents Of every dollar of relief paid
by employers shall go to the injured
workmen.
The justification for asking the
+ state to pay the cost of administra-
J ton is predicated on the proposition
that the saving to the state in the re-
I Guction Of court costs and lowering
c the rate for support Of the poor would
be many, many times the cost OF such
administration. 1t is to my mind mani
lfestly unfair that the employer should
/ be required to pay anything in excess
Of that which actually goes to the in
fjured workmen.
Il understand since my report to