Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-11-17

strictly regulated and a minimum pre-
scribed SO that the mutual association
Is protected from cut throat competi-
ton by private companies.
washington Is the typical state for
absolute state, insurance. No excep-
tions are allowed and no form Of pri-
vate insurance permitted by either
stock companies or mutuals. The next
form OF state insurance is that repre-
scented. by the states Of Ohio and West
Virginia.
The policy Of Ohio seemed as much
opposed as that of Washington to any
form of private insurance, but eXcep-
tions were permitted whereby employ7
ers of great financial strength were CIV
en- the right to carry their own risks
1t seems after securing this concession
some of the heavier employers Of the
state were still able to insure in the pr-
vate companies>at less rates than were
offered by the stat. This, of course
means that the stock companies In
these cases abandon their own ground
Of full premiums on the basis Of cap
italized value and themselves resort ia
the current cost method which they
have so strongly condemned in others
Moreover. the stock companies have not
only awaited themselves of this loop
hole to fight the Ohio system but have
sought to give the employers insurance
against acts Of negligence lying outside
| of compensation proper and really be-
longing to employers liability. Cues
tons thus raised have been taken into
the courts of Ohio and are at this writ
| ing on appeal to the state supreme
court with the prospect Of an early de-
Termination.
Remarkable Developments.
I'm Michigan, New York and Cali
fornia we have the best illustrations OF
a competing state fund organized anG
conducted by state officials. The sue
| cess of these funds and more particu-
larly that in the state Of California
constitutes one Of the most remarkable
developments under the workmen'<
compensation laws. The experience
heretofore in Europe had been thai
such funds were badly handicapped BY
kcompetition with private insurance. II
was commonly said, as a result of the
experience abroad. that private com
panies would always take the cream o.
l LILO DuSlucSS duu ledtc luS 'Ddu 1lShk
for the state. There seemed to be M
reason for-such a result, but it obtain.
ed In practice because while state
funds might differentiate rates so as tc
favor employers who were careful in
accident prevention, it had been found
that they feared the charge Of political
favoritism, however unfounded itmight
be, and therefore resorted to fat rates
for entire Industries and thus left tho
private companies the opportunity tt
give special rates to the best en-
ployers.
1.-THE California state fund appears
to have met this difficulty with entire
success UP to the present time. 1t De.
came "a subscriber to the identical sys-
tenn Of merit rating adopted by the
workmen's compensation service bur-
eau. This system of credits for acct
dent precautions covers a range OF
about Is per cent follows tlle line OF
the like system used in fire insurance
supplying on. nearly all points an alb
solute scale by which every item has
| its effect on the rate. Using thus the
same scale that the bureau companies
employ the state fundsis able to differ
entiate employers and adjust rates
with as much facility as the private
companies and without the state Off
Gals being unjustly subjected to the