Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-01-05
Counting the Cost

Counting the Cost
How much does workmen's compensation
really cost? And what is the value re-
ceived?
Since this form of social insurance be-
came established in America, and partly no
doubt as u consequence, the number OF in
dustrial accidents has been reduced nearly
one-half. Massachusetts has law which
makes employers and employees equal part
ners in the obligations and advantages of
safety first" 1t is a harmonious partner
ship; it has reduced the number of indus
trial accidents at remarkable rate; II has
practically cleared the Superior Court docket
of personal injury cases; it has made pos
sible the speedy adjustment of accident
claims without the litigation expensive
to State and contestants; 1t has afforded
immediate relief to thousands afflicted by
poverty and worry: and it has charged the
cost of insurance to the cost of production
with a total levy on the consumer of only
nine one hundredths of one cent for each
dollars worth of product purchased.
The cost Of getting along without work
mems compensation wakes up that efficiency
idea which is so popular nowadays.
How does Massachusetts get the results?
The Bay State law will be one of the three
or four to receive the most careful consid-
Grafton from the Legislators at Harrisburg.
This and the New York statute represent
the two principal types.
The Massachusetts way is this:
The act, which went into effect July l.
1912, is administered by the Industrial Acct
dent Board, which consists of five members
appointed by the Governor with the ap-
proval of the Governors Council
II applies to all emploVes eXceDt don1astic
and farm laborers, casual labor
having been included in its application by
a recent amendment, and to all employers
who elect to come under the act by taking
out insurance. This statement like certain
others which follow, is general, and must be
qualified by reference to statutory definitions
and judicial decisions.
Ninety per cent. of the employers in
hazardous industries are subscribers under
the act In ALL about 10000 employers of
labor have voluntarily provided its protec-
tion for $4,000 employees. There are only
10000 employees within the meaning of the
act who do not have this protection.
Insurance is issued by the Massachusetts
Employees Insurance Association which
does business on a mutual plan, and also
by approved private liability companies.
Inc rates must be submitted to and ap-
proved by the Massachusetts Insurance De-
partment. A special State commission is
now investigating the whole subject of gov
regulation of insurance rates.
From Injury to Payment
On becoming a subscriber the empIoyer
posts about his premises notices to that eff
feet. He loses his common-law defenses
that the employe was negligent that the in
Jury was caused by the negligence of a
Fellow employe and that the employe had |
assumed the risk of injury. If an employe
or subscriber prefers to remain outside the |
act, he must so notify his employer at the
time of hiring or within 80 days after the
employer becomes a subscriber The en- |
ployer OF course, can then plead the old de- |
'enses In damage suit. Only 49O employees. |
since the act took effect. have thus elected
% take their chances with litigation. In
his period, statistics show the payments
made by uninsured employers in fatal cases
ire only one-third of the amount due the
iependents OF employees under workmen's
compensation. The proportion In non-fatal
'ases' though not yet determined, is greatly
n favor Of the compensation act.
All employers, whether insured or not are
'equired to notify the State board of acci-
lents. With this notification to the board
he subscribers part in the compensation
procedure ends unless he has been guilty of
serious and wilful misconduct" In such
ases the employe is entitled to double COM
,ensatlon and the subscriber must pay the
xtra amount. He may defend himself be-
ore the board.
An injured employe notifies the insurance
ompany and is furnished with medical at
and, II necessary, is cared for at
hospital. Though the choice OF a doctor
# physician lies with the company. there
ave been few instances OF dihiculty over
he matter. as the company Is usually con-
ldarafn The accfdAnf hnara la Inra.n1.. -. i