The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-09
STATE INSURANCE
LAX, SAYS CONNOR
Investigator Asks Governor to
Have Complete Inquiry
Into Bureau.
RATES LOW, POLICIES FEW
"Wyncoop Service" Said to
Have Means Of Inside In
formation as to Risks.

ALBANY, June S.-Severe criticism of
the management of the State Insurance
Fund by the State Industrial Commits
sion is contained in n report to Gov.
Smith. made public tonight by Jere-
miah f. Conner. appointed by the ex-
ecutive TO investigate the affairs OF the
commission.
The State fund now insures approxi-
mately $3.50 employers, according to the
| report, and its rate is approximately
IL 1-2 per cent. lower than the rates Of
the stock companies. ut claims to have
16 per cent. of the compensation insur-
ance business of New York STATE
roughly speaking to use an expression
OF the manager" reported Commissioner
Conner. Fifty per cent. Of this busi-
ness Is carried In special groups re-
ceiving special treatment so that the
fund generally carries only about per
cent. OF the compensation insurance of
the State.''
| The fund on January 1. 1918, the re-
port states. had assets amounting to
nearly $5,500.00o and 1t Is apparent
that the financial condition of the fund
''at the present Is in an enviable posi-
ton" 1t Is said that additional divi-
dends in favor of the employers in the
| general groups to the extent of n mil
lion dollars could be declared and the
fund still be solvent beyond q question
of doubt
Commissioner Conner asserts that the
fund has been ''woefully weak" in It's
ability to collect premiums, stating that
there were approximately 1900 can
| celled policies from July 1. 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 500 cases
| Of cancelled policies in which payrolls
had been audited but in which bills had
not been sent out.
Much space In the report is devoted
| 20 one OF the special groups in the State
| fund where the employers in this group
| have a contract with G. w. Wynkoop.
who does business under the name Of the
| Wynkoop Service, under which an 'em-
| ployer in return for certain services,
including the prevention OF accidents
and handling of claims, pays the Wynn
\ koop Service one-half OF the dividends
declared by the State Insurance Fund.
I'm my opinion the Wynkoop trans
actions with the State Insurance Fund
are wrong from every standpoint" Com
missioner Conner reported. IN the frs!
place every service performed by the
wynkoop Service for the employer
| ShouIQ De performed ny inc otdtc lHeui
ance Fund ITSELF
Numerous employers in the State fund
have been approached by representatives
OF the vynkoop service just as theii
policies were about to expire. Commits
sioner Connor reported. This suggests,
he said, "at least a system under which
the wynkoop service is tipped of BY
some one when favorable risks in the
fund are about to expire
Many complaints have been received
by Commissioner Connor. who says tina
he Is satisfied that there is AN unrea
sonaole delay in making payments to in
jured workmen out of the State fund
He also reported that the fund pays fai
more attention to getting work for IA
vored doctors than 1t does for payint
compensation 10 the claimants" Alleged
favorltiem in fixing premiums also Il
charged.
What I have discovered is only ;
scratch on the surface" concluded thu
report. IT recommend that the Who'll,
State insurance fund be investigated
from start to finish by a competent actu
arial accountant"