New-York tribune., 1919-06-09
Fund in Enviable Condi-
ton. but Badly Managed,
Declares ]. F. Connor in
His Report to Governor
Thorough Inquiry Urged
Wynkoop Service Wrong, He
Says; Payments Delayed,
SFavorite Doctors Aided

ALBANY, June S.-Severe criticism
of the management of the state insur-
ance fund by the State Industrial Com
mission is contained in a report to
Governor Smith, made public tonight
by Jeremiah F. Connor. appointed by
the Executive to investigate the affairs
of the commission.
The state fund now insures approx
mately $3.50 employers, according to
the report, and its rates are approx
mately 141a per cent lower than the
rates of the stock companies.
1T claims to have 16 per cent Of the
compensation insurance business Of
New York State, roughly speaking to
use an expression of the manager"
reported Commissioner Connor. Fifty
per cent of this business is carried in
special groups receiving special treat
ment, so the fund generally carries onlv
about 8 per cent of the compensation
insurance of the state"
Assets Declared Sound
The fund on January /, 1918, the
report states, had assets amounting to
nearly S5,500,000, and it is apparent
that the financial condition of the
fund cat the present is in an enviable
position" 1t is said that additional
dividends in favor of employers in the
general groups, to the extent of
Sl,000,000. could be declared and the
fund still be solvent beyond a ques-
ton Of doubt.
Commissioner Connor declares the
fund has been "woefully weak" in its
ability to collect premiums, stating
that there were approximately 1900
cancelled policies from July /, 1914,
to date, IN which the payrolls have
not been audited nor bills rendered
for the amount due. In addition. he
reported, about a month ago there
were 800 cases of cancelled policies in
which payrolls had been audited but
in which bills had not been sent out
Wynlsoop Service Criticised
Much space in the report is devoted
to one of the special groups in the
state fund where the employers in this
group have contract with G. w.
Wynkoop, who does business under
the name of the Wynkoop Service,
under which an employer, in return
for certain services, including the pre-
vention or accidents and handling of
claims, pays the Wynkoop Service one
half of the dividends declared by the
state insurance fund.
"ln my opinion the Wynkoop trans
actions with the state insurance fund
are wrong from every standpoint"
Commissioner Connor reported "In
the first place, every service performed
by the Wynkoop Service for the en-
ployer should be performed by the
state insurance fund ITSELF
Numerous employers in the state
fund have been approached by repre-
sentatives Of the Wynkoop Service just
as their policies were about to expire,
Commissioner Connor reported This
suggests" .le said, "at least a system
under which the Wynkoop Service is
tipped off by some one when favorable
risks in the fund are about to expire"
Delay in Payments Charged
Many complaints have been received
by Commissioner Connor, who says he
is satisfied that there is "an unreason-
able delay in making payments to in
jured workmen out of the state fund"
He also reported that the fund pays
far more attention to getting work for
favored doctors then it does to pay
ing compensation to the claimants" AL
legged favoritism in fixing premiums
also is charged.
What l have discovered is only a
scratch on the surface" concluded the
report. II recommend that the whole
state insurance fund be investigated
from start to finish by competent
actuarial accountant"