The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-02-14
Favorable Action Of Leg
islative C o m m lit e e
Meets Approval.
COMMENTS BY BIG
BUSINESS MEN
Show How Greatest In
terests Of Largest Num-
berC Concerned Is ofVast
Importance to State.

that the business interests OF the state
are opposed to the bill providing for
state fund insurance. favorable ac-
ton of the house ana senate COM
mfttees In general laws yesterday was
a source OF qualification to employers,
large and small, in all section of the
State.
This was the statement made last
night by G. w. Boyd, of Richmond.
one OF the largest individual employ
srs and biggest besiness men of south
vest Virginia. Mr.. Boyd Ia president
of the Kennedy Coal corporation and
vice president OF the White Oak Lun,-
Der company, operating the largest
hardwood factory in the south.
The presence in opposition OF
group OF powerful business men at
.he public hearings on the biil' said
Mr. Boyd last night TO a reporter OF
he Richmond Nirginian, has seafsa-
ingiy impressed the general public
sith the idea tina. the bin is inimicai
y the interests OF business. In
-eality, practically all small employ
srs and many large corporations are
nliy in sympathy with the bill. The
support Of the large corporations,
those who are self-insurers} Is the
-csult of an unselhsh desire to see q
soand principal sustained. They will
1,st be affected by this bill. The de-
isaeratn effort TO create the impress
ssaa that the bill provides for a mo-
4otfolistie form Of insurance has sue
snesIesf In some itstaf1tes and the OPP
iaasitton O MANY large employers Is
s.ut 10 this Of tt1e fear that this is the
5sst sep towards such a goal.
Mr. lloyd then pointed To the
ss,isas.hsissa ssssti corporation as one
ssfsifitBns which Is supporting the bill
ssseausE-es The principle involved. This
savaapa1ig. he said. is d seif-tnsurer
s.ssf s-.siif not be affected in any Gay
ss he hiii. Incidentally he 5nan-
HAL - he cooperation na.Yed
$4,000 4ast year by not dealing with
stock insurance companies.
The bill was reported by both the
house and senate committees. The
itouse committee reported ID by a
stste of 10 4. The senate committee
reported 1t with the recomme ndation
that IL be not passed by vote of
: to 1 The vote in the senate COM
mittee Was really tied. however,, SEN
ator Hening changing his vote in or
der 70 break the deadlock and get
Cooke Voted against the bill and Sem
ator Mills. Beverley, Deal. West and
Coskc voted against the bill and SEN
ator Hening, Mitchell. Garrett. Holt
and Jeffreys for ii, Senator Hening's
vote being changed as mentioned.
Commenting on the insurance bill
last night. Mr.. Boyd said:
G. w. BOYD's VIEW
This is one of the most important
pieces of legislation in recent years
At the same session at which the ex-
sting compensation act was passed,
Joint committee Of the house and sem
ate was appointed TO conider furthr
the advisahflity OF establishing state
lA&
upon the subject That committee
held hearings during the past year
ana nled a report at this session
which was accompanied by the bill
new pending in both hou es provid-
ing for the establishment ia state
Insurance fund, and also retaining
ana protecting the right of self In
surance, both to Individual employers
and to groups OF employers, but ex-
-luding stock insurasce companies.
This report and the bill proposed by
II have met with very violAt oppo-
sition from Insurance companies all
over the country and Insurance agents
all over the state, and also from GER
ssain business interests OF tho state.
ION the other hand. large and
small busisess interests in the state
ire actively advocating the passage
81 the bill They point out the fact
that the rates established by the
stock companies are built up. accord
ing to the statements of the COM
panies filed with the insurance. COM
missioner. Of various items. 50 that
the cost Of acquisition and OF admin
lstration Is 40 per cent OF the pre-
FHiums paid. In other words. forty
cents out OF every dollar paid by en-
ployers az premiums to the stock In
surAnce companies Is consumed in
expenses before anything is left for
prontS 70 the insurance and for the
protection OF employee They say
hat this expense is unreasonable and
sxhorbitant. and In support of THAI
contention they have shown that In
Yates where there is an established
tate insurance fund, the cost OF adj
nintstration Is nowhere more than
zen per cent, IN West Virginia 1t Is
.hrce per cest, while In Ohio II is
sniy two and onc-half per cent OF the
premiums.
The employers supporting tho bin
further contend that as the presen,
compensation law Is made commit
sory by this statute. II Is the duty cf
the state to provide tho most eco
sssHfssiA sassc shed AEasHsksb ksr 4t1H snsaaecs
tion and disbursement or the fund
They do not object to the princinie
az compensation but insist that the
maximum amount of money paid by
hem for that purpose ehall be held
Tor the benefit Of their employees. IL
has been demonstrated by experience
n other states that the most eco
aeEaie Nay of celiecttng ard dIstrihut4
ng this fund is through the medium
II 3 state insurance fund. They are
ftdn ffan -