The labor world. [volume] (Duluth, Minn.) 1896-current, 1919-03-01
|0H|0'S State INSURANCE Law
GOOD FOR CAPITAL AND LABOR
Chairman Duffy Of Buckeye Commission Tells Minnesota Legs-
tors How Plan Benefits Both Workers and Employers; Hecked
By Insurance Men, He Answers Them Completely

The members of the Minnesota leg
islature listened to speech one night
last week from Thomas J. Duffy,
chairman of the Ohio State Industrial
commission, that made a. fine impress
sion with the law makers. Mr.. Duffy
came to Minnesota on the invitation
of the Minnesota State Federation of
Labor. He was introduced by G. w.
Lawson who referred to the activities
in the legislature by the insurance
companies.
Dependents Of 80 per cent of the
workers killed in industrial accidents
prior to the present working of the
Workingmen's compensation act in
Ohio recovered no damages, and of
the damages recovered by the depen-
dents Of the other 20 per cent much
Of that amount went to lawyers for
fees. This was before the state oper-
alton. of workingmens compensation,
Mr.. Duffy said.
This state of affairs brought about
dissatisfaction both by employers and
employees. Both looked for a solution,
and they found it in state operation
Of the compensation law, Mr.. Duffy
explained. During the first two years
Of the state fund in Ohio it was OPP
tional as to: whether employers would
come under the state; insurance or
would remain: under the private in
sura1lce plan. Aid as to the actual
result Of such operation: Mr.. Duffy
told Of two: incidents which: stril1ingly
demonstrated the value of state in
surance to the employer as we'll as to
the *employe. -: .'< =: ':::::.- . $780,, $780,,
The Paulding Cement. Company of
Paulding decided to- come under the
state insurance plan and paid a pre-
MUM. Of :$2o.5o for protection from
the state. Shortly .afterward, John
Schaefer: was killed in the Paulding
plant and the state promptly egban
paying the widow two-thirds Of his
weekly wage for: six years. The CO.
ment company had no actual fnan-
>cial concern in the matter.
However,, the Continental Canning
company Of Continental did not come
under the state plan. deciding to re-
main under the private insurance
plan, under which Minnesota employ
ers now operate. A girl worker was
horribly mangled in the canning COM
pany's works when her hair caught
in the machinery. The employers
sympathy was aroused and the cam
ming company asked it's insurance
company for quick settlement. The
insurance company preferred to delay
until suit was brought. A jury
promptly returned a judgment for
$500.
Again the canning company pleaded
with the insurance company to make
settlement, the canning company Of
fering to pay $1,000 of the judgment
if the insurance company would pay
the $4,000 for which the canning COM
pany was insured. The insurance
company continued with it's usual
legal efforts to evade payment. When
the canning season came the canning
conlrany went to the bank, as usual,
and tried to borrow $4,000. The
bank refused, stating that it could not
-'oA1 1AAU1fey do 4o446 do IHe 30, wv JuuS-
ment was out against the canning
company. Shortly afterwards, unable
to swing financial obligations without
help, the canning company failed.
When the state commission of Ohio
planned to start the state insurance
plan, however, it was refused cooper
alton by private companies. The state
had sought to ascertain the insurance
costs to apply in Ohio. and the pri-
vate companies refused them. Ohio
state officials at first guessed at the
figures, but now have them through
experience. In seven years the COM
mission, Mr.. Duffy said, had gotten