The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1919-02-28


ences place the costs and profits of
this class of insurance at from 40 to
60 per cent of the premium paid. We
do believe, however, that the small
employer whose premium figured at
the regular rates, amounts to but a
few dollars, should not be compelled
by arbitrary demand of the insur-
ance companies to pay a $1,000 mini
mum; or that a man who employed
a few workmen for a short time in
the construction of a house should be
compelled to pay a premium of $4,000
even though this was subject to a re-
bate down to the $1,000 minimum on
surrender of his policy.
Perhaps the most embarrassing
feature Of dealing with the casualty
companies is their habit Of refusing
risks or of cancelling policies without
other stated reasons than that they
do not care for them. All of the
butchers and draymen on Maui were
for a time doing business in viola
ton Of the law because their insur-
ance had been cancelled by the com
panies. No reason for this was ever
given to the Board. Later another
COulpduJ It-MlOlG lulS ll1c VI DuSi
ness. We have one or two similar
cases on hand at the present time
where policies have been cancelled
for no cause as far as either the en-
ployer or the Board knows.
State Insurance
State insurance is not an untried
thing in the industrial field. In three
states, Washington, Ohio and Wyom-
ing, the State exercises a monopoly,
private corporations being barred
from writing accident insurance. Ne
vada, Oregon, Texas and West Vir-
ginia compel employers to insure in
the state funds if they elect to come
under the compensation laws. Cal
~ifornia, Maryland, New York, Colora-
do, Montana, Michigan and Pennsyl-
vania have state funds, employers
having option Of patronizing these or
securing compensation through pri-
vate companies.
Inasmuch as Workmen's Compensa-
tion Laws are new in the United
States, practically all having been
enacted within the past ten years)
the success Of any Of the various
plans has scarce had time for a real
test. In Ohio, however, which mono
polizes this kind Of insurance and
which is one of the largest of the in
dustrial states, the commissioners
claim that the entire cost of admins
tration amounts to but 10 per cent Of
the premium paid; that the rates are
lower than average rates in other
states, and that an ample reserve and
catastrophe reserve is carried.
This Board, therefore, respectfully
urges upon the Legislature the amend
ing Of the Workmen's Compensation
Law by providing for a Territorial
Insurance Fund TO be administered
by an expert actuary or manager for
the following
(a) Because the present system Of
private casualty company has
sistently proven unsatisfactory;
% Because the principle of COM
polling an employer to carry insur-
ance and atfording him no means Of
complying with the law except by
contributing to the support Of COM
panies engaged in the business for
their own profit, is wrong; and
(c) Because the experience OF
various states points the way to
remedy the difficulty.
This Board also respectfully sug-
gests the ACCESSIBILITY of not appoint
ing as members of Accident Boards,
persons who may be directly or in
directly interested financially in the
business OF writing compensation in
surance.