The labor journal. [volume] (Everett, Wash.) 1909-1976, 1918-12-20
MARTIN ]. FLYZIK TORPEDOES
WASHINGTON HOSPITAL ASSN
And the Srewn With Corruption and Evidences Of
Foul Fraud

In the following letter Mf. flyZlh
a member of the State Medical First
Aid Board exposes the questionable
methods of the w. H. A.
When the courts of the State OF
Washington decreed that the en-
ployers could deduct one dollar from
the earnings of their workmen for
medical and hospital treatment
few gentlemen of leisure got to-
gether in the various parts of our
state and decided to organize priv
ate stock associations under the pre-
tense of furnishing hospital and
medical treatment to injured work
men.
The records of the Secretary Of
State show that the Washington
Hospital Association sprung into
existence on April 2, 1908, with H.
H. Harris and o. D. Edmonson as
it's incorporators. This institution
was incorporated with a capital
stock of $50,OOO.00 (90fo of which
was watered,) representing $4,000
shares at par value of one dollar
per share. The stock was sold on
the market at one dollar per share
after the manner of all stock sold
by capitalists corporations, and
those induced to purchase did so
purely as an investment on which
they hoped to realize speedy and
rich returns, and not because of any
humane motives, as it's officers
would lead one to believe.
You will note that the Washing
ton Hospital Associations incorpor
ators were not physicians and it
therefore cannot be claimed for them
that they were prompted by the
same lofty and humanitarian mo-
tives that would induce a man OF
the medical profession to form such
an association for the benefit Of
injured workmen.
Prior to the enactment of the
present First Aid Law the represen-
tatives of this association were not
obliged to consult the employees re-
garding the awarding of medical
contracts. The workman had no
voice in this transaction. The sup
erintendent by self-constituted au-
thority spoke for the men and
awarded the contracts to whom he
saw fit, and any one questioning
his wisdom was Immediately dis
charged. The workman's only func-
ton under that system was to pay
one dollar towards the maintenance
of these institutions regardless of
the number of days he worked per
month. In may instances the work
man contributed as high as $500
per month towards medical treat
ment by frequent enforced changes
of employment. 1t is also matter
of indisputable record that the bosses
Of many industries entered into
tacit compact with employment
agencies and persons holding medical
contracts to discharge from their
employment as high as 5096 of their
normal working force from time to
time so that more jobs would be
purchased to stimulate business of
these agencies and at the same time
the revenue of the persons or as
sociations holding medical contracts
increased and the spoils divided be-
tween the triumvirate. The Wash
ington Hospital Association might
also attempt to refute this state
ment in another paid advertisement,
but permit me to refer them for
corroboration to Harley Hughes,
Chairman of the Industrial Insurance
Commission, E. P. Marsh, former
President of the Washington State
Federation of Labor, and William
Short the present incumbent, all of
WHOlH Gail anu Will HOHeSlly anu
conscientiously testify as to the cor
rectness of the above statements.
These abuses were so numerous
throughout the state that many of
the fair minded employers recog-
nized the necessity of the enactment
of remedial legislation that would
strike at the root of the evil and
to a certain extent, minimize the
exorbitant hospital charges that
were deducted from the earnings OF
the workman. In order to accom-
plish these results it was necessary
to pass a law that would make the
workman a party to the medica
contract and give him a voice ir
the selection of a physician or hos
pital association that would proper
ly and decently look after him il
1o.,