Perth Amboy evening news., 1920-02-17
GOVERNOR URGES
INSURANCE FUND
Message on Liability Insurance
Sent to the Legislature.
Ru snnoinl corrnsnondenf.

81 special Correspondent.
TRENTON, Feb. 17-Pointing out
that between the years of 1913 and
1918 inclusive employers liabi ity in
surance companies Issuing policies in
New Jersey made total profits of APP
proximately $40, 100000 owe and
above the total amount of one paid
out to injured workmen Of dependents
In cases of death, and that this profit
was saddled upon the shoulders Of
the employers of the State. Governor
Edwards last evening sent a specia.
message to the Legislature urging the
creation OF a commission TO study the
question OF establishing q State Insur-
ance Fund After reviewing the pro-
gress during the last nine years made
under the Workmen's Compensation
Laws, Mr.. Edwards said:
mo one can, / think quarrel with
the humanity of such purposes, nor
with the general desirability of pro-
tecting injured workmen and in death
cases. their dependents. so that their
usefulness to the community at large
may be conserved and so that they
may be prevented from becoming a
charge upon the State. I am I'M
pressed with the thought, however,
that In the institution of such policy.
the State assumed the responsibility
of seeing that as 'arge an award for
injuries or death should be made as
10 possible without creating too heavy
a burden upon h shoulder Of the
employer. That may be accomplish
ed, perhaps through the creation of
q State Insurance Fund. managed by
the State, to which the employer shall
contribute and out of which compen-
sation Is to be made, thereby elimi-
mating the exaction from the employer
OF accident insurance premiums large
enough to earn profits for the COM
panies carrying on such business"
The message of the governor fur
ther stated that information from
the Department of Banking and In
eurance showed hat between 1913
and 1918. the figures for 1919 not
being completed yet, companies In
surfing employers in New Jersey
against loss under the compensation
laws reaped the total Of SIT, 200. 600
In premiums on policies and paid out
under these same policies only APP
proximately $4,000, 600. thus giving
these companies the profit Of $10,-
500, 600 after deducting their ex-
penseS.
I'm my judgment, such a result de-
feats the purpose of the states poll
ICY" continued the governor. "If the
policy is worth while, n ! am sure
II Is, then we should see to 1t that
the persons for whose benefit 1t was
put into force get all the benefit pos
sible."
The statistics show that in 1918,
for instance. the employers of the
state paid premiums to the compa-
MES on the risks written amounted 10
$6,194, 90f.90, and the total losses for
the same period were but 1891, S25.-
81.
II understand the State of New
York now operates a state insurance
fund" said the governors message
In CONCLUSION. MY desire Is to sug-
gest the investigation of the creation
and operation of that fund so hat II
1t is found to be practicable, a SINH
lar fund may be instituted in this
state and the present system abol-
tshed."
This question Is one which the ex-
ecutive promised to discuss more
fully when he delivered his inaugural
address.