The Butler County press. [volume] (Hamilton, Ohio) 1900-1946, 1919-08-15

claims to maturity, had OH March /,
1919 clear surplus of more than
$3,600,000. Owing to this highly sol
vent condition the fund can safely
distribute about one-third of its sur
plus in the form of cash dividend
2. Premium rates proved some
what redundant under the very ex-
ceptional conditions of the past two
years, but the general rate level is no
more than adequate for normal indus
trial conditions. No general rate re-
duction can safely be made at the
present time.
3. The Industrial Commission Mani
tests every disposition to pay the full
:egal benefits upon all valid claims.
There is no evidence of unfair COM
promises, short changing or disallow-
ance of claims on merely technical
grounds But there are instances of
excessive delay in adjusting claims,
and the average interval between date
of accident and the first payment
thereon is too long These delays are
due in part to an inadequate appro-
priation and in part to overformal
j procedure requirements.
4. The fund has been managed
with extreme, even excessive economy
The actual net cost Of the fund does
not exceed 2 1-2 per cent of the aver
age annual premium over five-year
period In part, this extremely low
cost has been attained by unwise and
unnecessary skimping of service"
This is what Dawson says:
"The outstanding results of this
thorough investigation of the Ohio
State Insurance Fund is to demon
strate that it is, and had at all times
been, strong and solvent. that it has
been conducted with economy unpre-
cedented even in the state funds the
world over and at about one
twentieth the expense in insurance
conducted for profit; that the State
Industrial Commission has admins
tered the Workmen's Compensation
Act through this public agency with
care and in most unusually benefit
cial manner, so as to subserve the
public purpose of relief where relief
is due under the law; that the only
operative defect, namely, tardy and
overformal handling of claims will cas-
lily be removed by simplifying the pro-
cedure, and that, all told, the great
est and most successful demonstration
in this country of the possibilities of
the largest benefits at the lowest cost,
from a Workmen's Compensation law,
has been achieved by the Ohio State
Industrial Commission and the man
agement of the Ohio State Insurance
Fund"
While disagreeing on minor details,
the experts agree in giving praise to
the technical and administrative work
of Actuary Emile E. Watson. They
find the rates and the margins of re-
serve ample to meet any contingency
and while Downey says the catas-
| trophe reserve should be builded to
$2,000,000 from its present place of
81 ,052,00 Dawson thinks it large
enough
Commenting on the delay in getting
compensation to injured workmen
Downey says:
"This unfortunate situation" he
says, "is due in large part to totally
inadequate appropriation. The claims
division has ninety three full-time EN-.
ployes, including seven field investi-
gators, to handle more than 10000
claims annually. The salaries are
miserably insufficient to attract and
retain capable men for the responsible
positions" He says the force of fielc
agents is inadequate to make prompt
Investigations in disputable claims
However, he also criticizes the delay
in making first payments as due tt
''ritualistic procedure" Compensation
should not be delayed, he says, where
it is manifestly due, because of the
delay in receiving physicians re-
port since, as he says, medical mer
are notoriously negligent in making
reports. The employers notice of ac
cident should be made prima facit