Denver labor bulletin., 1918-04-13
COMPENSATION TO
BE FREED FROM
PROFITEERING
so DECLARES NEW YORK
COMMISSION.
Law Urged to Prohibit Commercial
Companies From Exploiting the
Misfortune of Workers of
That State.

'The American states should put a
stop to profiteering in workmen's
compensation insurance"
This declaration of the New York
| state industrial commission, which ad-
| ministers the workmen's compensa-
| ton law, was made thru Manager F.
| Spencer Baldwin of the state insur-
ance fund, in urging the passage of
| the Gilchrist bill to exclude. private
stock companies from the business of
compensation insurance, at a hearing
on the measure April 2 in Albany be-
fore the judiciary committee of the
Legislature
1.-The stock companies and their
representatives have by their own
| despicable competitive tactics invited
their exclusion from the field" said
Mr. Baldwin, who announced that this
conclusion has been accepted some
what reluctantly" and forced on him
| against his economic preferences after
SIX years experience in practical ad-
ministration of workmen's compensa-
| tion insurance.
| 1.-THE waste entailed by the present
| competitive plan of insurance in New
| York state may be estimated con-
servatively at S4,00O,OOO annually. 1t
costs the stock companies approx
mately 65 cents in management and
acquisition expenses to get 81 of COM
pensation into the hands of benefi-
ciaries; it costs the New York state
| fund about 10 cents to distribute 81
in compensation. There is no justifi-
cation, economically or morally, for
commissions and profits on workmen's
compensation insurance"
Millions of Dollars Wasted
Chairman T. j. Duffy of the Ohio
state industrial commission appeared
in favor of the bill, declaring that the
exclusive state fund for workmen's
| compensation insurance, as in Ohio, is
| a conspicuous success. "The legisla-
ture can now approach this proposal
| for eliminating costly and unjusti-
fable private competition" he said,
''in the light of proved performance.
President James p. Holland of the
New York State Federation of Labor
and Secretary John B. Andrews of the
| American Association for Labor Leg
| islation, among representatives of
other organizations, urged the imme-
| diate passage of the bill as a neces-
sity for relieving industry from the
present expensive burden imposed by
the casualty companies operating for
profit. Several employers also en-
dorsed the plan, testifying to the GER
| TAIN ana savings
brought about by the well-conducted
state fund.
Answering Representatives of the
commercial insurance companies who
| appeared to fight the bill, Manager
/ Baldwin declared that these companies
had misrepresented the state fund in
"an absolutely unscrupulous and
| shameless" manner.
| There is a growing conviction that
no one ought to be permitted to make
money out of the necessity of the en-
| ployer and the misfortune of the en-
| ployes," continued Mr.. Baldwin, who
asserted that his indictment of the
commercial companies does not apply
to mutual companies, which pay no
| dividends to stockholders and no com
missions to agents. "The present time
is peculiarly opportune for the stop
page of the waste entailed by the
present competitive plan of insurance.
| The exigencies of the war call for the
adoption of every practicable measure
| to speed up industry and cut down the
cost of living. The waste of millions
of dollars annually thru stock com
pany participation in the business of
workmen's compensation insurance
should not be tolerated in this period
of economic and strain "