The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-09-03
Labor Moves For
Exclusive State
Insurance Funds

A nationwide campaign has been
launched by organized labor to Sc
cure the adoption in all states of
exclusive state insurance funds for
workmen's compensation, similar to
the Ohio law.
This advanced action was ordered
in a resolution unanimously adopted
at the recent Montreal convention of
the American Federation of Labor
which in vigorous terms condemns
private profit taken by commercial
insurance companies out of the mis-
fortunes of injured workers.
"The American Federation Of La
bor," the resolution states, "has re-
peatedly appealed for the elimina-
ton of private profit in the opera
laws. In the State of Ohio the law
has worked to the advantage of the
wage workers and with the elimna-
ton of private companies much
greater benefits are available to the
injured workers. We have appealed
in the past to the various state fed
erations to have them work for the
adoption of legislation which will
give to the state alone the control
and operation of the workmen's com
pensation law. The present law in
operation in Ohio is one that other
states can safely follow"
The resolution instructs Secretary
Morrison to call the attention of the
secretary of each safe federation to
the Ohio compensation law with the
request that each state federation
petition for the enactment of similar
legislation in each state"
Before the vote was taken a ques-
ton was asked whether the Ohio plan
for an exclusive state accident insur-
ance fund is applicable also to states
Of small population.
GAS a citizen of Ohio" replied
John p. Frey of the Moulders' union,
81 would say the Ohio law is apple
able to any state, no matter how
sparse the population. 1t is based
upon the theory that every cent con-
tributed by industry should go to
those who are injured, or to the
families of those who are killed, and
not one cent to private profit"
Sixteen states have established
state accident insurance funds; and
five provinces of Canada-Manitoba
having just come into line-now pro-
vide compensation insurance at cost
through exclusive state funds.
Recently Miles NJ. Dawson, consult
ing actuary, New York, made official
Investigations of the state funds in
Ohio, Pennsylvania and New York.
In favorable report just issued By
the American Association for Labor
Legislation whose standards" for
workmen's compensation laws en-
phasize the need of exclusive state
funds, Mr.. Dawson writes:
"All three funds thus examined
were found to be in sound and pros
porous condition. Tested by correct
and even stringent actuarial stand
ards, they possess ample surplus over
all liabilities, immediate and con-
tingent. Compared with stock insur-
ance companies, they result in saw
ings of millions of dollars every year
to employers, while at the same
time providing most certain and lib
eral benefits to injured workers and
their families. In low expense of
management they set new records,
not merely for themselves, but for
all carriers of workmens compensa-
ton insurance throughout the world.
Most important of all, these inves-
LEGATIONS show the superiority of
state funds over commercial insur-
ance companies and of the exclusive
state fund, as in Ohio, over all other
carriers. That is the finding of
most immediate and direct interest
to employers, employees and the pub
lie"