Bryan daily eagle and pilot. [volume] (Bryan, Tex.) 1909-1918, 1916-07-20
$4,000 ACCIDENT N
CLAIMS SETTLED
WITHOUT LAWSUIT
GENERAL MANAGER OF TEXAS
EMPLOYERS INSURANCE AS
ISOLATION GIVES FIGURES.
easIs for Workmen's Compensation
Law Discussed.

FORT WORTH. Texas.-The Texa.
Economic League has given out fol
publication the following article 5y
Homer h. Mitchell, general manager
Of the Texas rnployers Insurance
Association, concerning workmen'i
compensation laws:
THE economic basis for work
mems compensation insurance laws
Is much more easily established than
the legal basis. II does not need the
support OF the facts and figures de-
veloped by investigation into the sub
ject. Practically all men are ready to
agree that the economic insecurity OF
workingmen and their dependents
justifes the fundamental principle in
volved in such laws, namely, that In
dustry should be taxed to provide def
mite, fixed and certain benefits for
injured workingmen and their de-
pendents, rather than that the re-
covery, II any, OF an injured working
man should be determined BY juries
on mixed questions Of law and mct
as to who may have been at fault
for the injury and economic loss res
sulting from IT, The legal basis for
such laws is Of interest, principally
to the legal profession.
1.-THE paramount questions with EN-.
ployers subject to the law now Is:
How has It's administration turned out
IN Texas? The answer is that mora
than fifty thousand accidents have
been reported, and that the number
OF law suits resulting has been abso
luteiy negligible. More than one hun.
dred thousand working men are pro
tected by insurance. providing stat
utory benefits. More than Ave thou
sand employers have become subscrib
>rs. Notwithstanding the very ma
.terial increase In premiums for com
pensation insurance over the cost o,
old.fashioned employers liability in.
'surance. Employers to whom the
act is not applicable have individually
and through their organizations. en-
pressed a desire to be included. rath
er than excluded as soon as the Law
can be so amended.
Whatever dissatisfaction NAV be
found among employers Is due to the
fact that the cost to the employer Il
out OF all proportion to the benefits
to the employee. The companies TO
porting to the Insurance Department
Of Texas under oath disclose the col
lection Of more than two million dol
lars In premiums. and the payment Of
only about one-third that amount lnl
losses. II Is essential to the success
of the plan that the funds be accum
ulated and disbursed through an
surance organization. but II Is not
necessary that II cost $500. or even
si.oo to provide. adjust and pay si.0e
to an injured employe. Economic
waste was the outstanding objectioa
to the operation OF the old law. Eco
,nomic waste must be eliminated from
the law before II can receive III,
approval Of all those who are sub
joct TO II.
III the insurance companies Oh
plotting the field OF workmen's com
,pensation insurance were for a mo
ment regarded by the public rs the
public now regards public service cor
porations, an investigation into thsi,
books would hardly be necessary
preliminary to vigorous restrictive
statutes. limiting their operating Of
penses and profits TO such a figure
that they would not be permitted IA
collect $500 from employers in ordoi
that 800 might be paid to employee
. "The Texas Employers Insurance
Association. created by the Act as nc
agency OF the State TO enable en-
ployers TO discharge their obligation,
toward injured employees at the least
possible cost. has. after rcducin,
stock company rates approximately
onc.third, and writing only a portios
Of the entire business OF the State 70
less than two years timo accumu
lated undivided profits Of $4,000
The total business OF the State would
have enabled them 10 accumulate
over half million dollars. Had they
collected the premiums which many
OF the commercial companies hav,
charged their policy holders, its prof
It's would have considerably exceeded
one million dollars.
1T "a time that those Affected "a
versoly by these uneconomlc meth
DDS should be looking into available
statistics and cooperating With those