The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-04
MILLIONS LOST BY
INJURED WORKERS
State Industrial Insurance
Fund ReOpened Many Cases,
Giving Victims Increases.
PHYSICIANS CRITICISED
Inquiry Shows Compensation
Bureau i'm Good Condition
Despite Graft Cases.

About 81. 900. 900 has been lost in four
syears to injured employees VINO nave
imade direct settlements with their en-
iployers for accidents without recourse 10
1.-THE state Industrial Commission, accord
ling to William C. Archer, deputy COM
missioner. who testified yesterday before
commissioner jeremiah r. Conner IN
1.-THE investigation at City Hall into the
5affairs OF the Industrial Commission.
The money lost to the worlSmen by
these thrifty settlements" as Mr..
lArcher termed them, was saved to in
ssurance companies and other companies
(which carried their own risks. The law
has been amended since so that all
sclaims for compensation for injury must
,be submitted to the commission An
Investigation by Commissioner Conner
,of 1000 cases settled privately resulted
lin the making of additional awards to
the injured worlmen in ia cases.
Mr. Archer testified that s1s.712.4o
was received originally by the men in
their private settlements The rehearing
lof their cases before the commission re-
suited in the awarding to them of an
additional amount Of s52,27s.84. an aver
age increase of more than $3.50 a case.
The average settlement was about one
NTH of the award.
"Since the agreement law has been
defective there have been approximately
100000 agreement cases." Mr.. Archer
Testified. IF the same rule should hold
. per cent. or 1880 cases at the per
capita disclosed would reach total of
$5,770,SO0." ~
Insurance Companies Gamers.
"1n other words the investigation. so
FAR as it has gone, indicates that In
the single year starting June 80. 1917,
the insurance companies both stock and
mutual, which made use of the direct
settlement plan. were gamers by more
than a million dollars?"
YES" answered Mr. Archer.
/ And during the entire period in all
probably nearly s5.00O000?"
"Yes. Those figures would indicate
more than s5.0OO,O00. but believe the
upstate cases would run fewer addi-
tional awards"
Mr. Archer also testified that about 4 U.s.
900 cases will have to be reexamined to
determine whether or not the injured
workmen deserve more money. He ex-
planned that the commission was OPP
posed absolutely to the change in the
Jaw that made direct settlements pos
sible
THE entire State workmen's Compen-
sation Commission. with practically all
persons connected with 1t, opposed it at
that tme?"
Yes. Absolutely" Mr. Archer re-
piled with emphasis
ut was adopted at that time, was it
rot. as you have already stated, upon
the initiative and with the support of
fhe insurance companies backed by self
insurers, and some other employers and
by some civic bodies which were domi-
mated by them?"
yes. except that there were a few
Carriers which did not advocate it at the
time. and felt that it would lead to
trouble"
Medical Service Discussed.
MIR. Archer. we had on the stand the
other day some witnesses in regard to
The conduct of the medical service in
connection with the State Insurance
Fund, being that of DR.. Meyer Wolff.
do you know in your capacity or have
you learned in your capacity as deputy
in charge OF workmen's compensation
ployed by insurance companies?"
Some insurance companies employ
the same service"
Some of them, indeed quite a number
OF them, employ DR.. Meyer Wolff's in
dividual service. exactly the same SER
vice, do they not?'
( Il think so.''
was or was not one of the difficulties
encountered under the direct settlement
gYqtarn that nj.
lected by the employer, not infrequently
appeared at least to lean pretty strongly
bis way in making their reports, which
became a part Of the papers that you
were 93ks upon7"
"WdLx Ae attending physicians re-
ports on the whole have not been re-
liable evidence in the case. That is not
only true Of one physician. 1 am speak
ing generally"
Despite the revelations of graft and
bribery which have been made. the State
Insurance Fund is in Furnishing con-
qltion at the present time. Joseph III
woodward, an actuary employed by the
state Insurance Fund from NAV. 1914
10 October, 1918. testified at length con-
eerning the financial situation of the
fund and Identified as his report of
august T. 1918, stating that the assets
OF the fund had grown from zero at the
SO was S"ipiOSeu u S4,o55,143.
Fund Declared in Good Condition
Albert H. Mowbray. another actuarv
destined also concerning the present good
situation OF the fund. but said that soma
representatives of the insurance COM
panies would endeavor to use the gran
revelation for their own betterrnent.
MI. Mowbray, In the present condi-
ION OF the company as Of June 80 1919,
46,05f,SfS.5S of assets and with its stat
utory catastrophe surplus wholly unirn
paired amounting to S623,O5O 80 and mn
assigned surplus of $225.5SS.44, after
making up reserve for the dividends 10
be paid IT. the next six months period OF
$262,99o.1S, you regard It in a strong
and unassrahable position. do you not p"
ct do"
Mr.. Mowbray, the result of the
cleansing process Of getting rid of graft.
bribery and similar conditions which
have grown up there within the last wear
and half ought on the whole to be salu-
tary, ought it not?"
Tn general yes There Is this promo
sition, though, as regards tho State Fund
that the state Fund can't have its repre-
sentatives present In a network over the
state, and although regret TO say that
some Df the representatives of it's COM
retstors are about rs well, TO use plain
English. rather interruptions and will
unques;ionably seize upon has been
brought out and use II to their best
endeavor TO damn the State Fund"
The hearing will be continued Monday
at 2 p NJ