Capital journal. (Salem, Or.) 1919-1980, 1921-06-13

Casualty insurance companies
operating in Oregon are now en-
gagged in the greatest organized
drive against the workmen's com
pensation law in this state that
has been made since the compensa-
tion law went into effect nearly
eight years ago, according to
statement given out by the state
industrial accident commission
here today.
In their efforts to break down
the compensation act, the state
ment of the commission points out.
these insurance companies have
brought into Oregon some of their
highest paid and most effective
organizers and solicitors and have
laid their plans for highly inten-
sive campaign.
a. Spread Is Feared,
The attack on the oregon law
at this time, the statement eX-
plains, is prompted by the fear
that the wonderful record made by
the Oregon compensation act,
might lead to its adoption by 9TH
er states. This record, it is point
ed out, is shown by report COM
piled by Carl Hookstadt, compen-
sation expert for the bureau OF
labor statistics for the United
States department Of labor places
the administration of Oregon's ex-
elusive state fund far ahead of OF
not only the competitive fund
states but also ahead of the best
casualty insurance companies in !
the United States.
Information confirming thes
facts have come to the commission
from so many different sources
that we are positive of their cor
rectness," the statement of the in
dustrial accident commission
reads. I'VE have also been inform
ed that these companies, If they |
find it necessary, are prepared to
cut insurance rates far below cost |
to them in order to induce employ
ers to break away from the com
pensation la in this state, while
this temporary loss will be made
up by profits in other states where
the companies have freer hand. !
Reason for Attack. (
There is a reason for the casual
ty insurance companies centering
their attacks on yhe Oregon com
pensation law at this time. Ore
gon Is one of the few states which
have an exclusive state compensa-
tion fund By this we mean that
in Oregon casualty insurance com
panies are not permitted to write
compensation insurance under the
compensation law but instead all
employers and employees who come
under the compensation law must
look to the state accident fund ex-
clusively for their protection. Ma
tion wide attention has been call
ed to the fact that the Oregon
compensation law is being admin
istered more efficiently, from the
of the promptness In
payment of claims and the scope
Of the service rendered, than any
Insurance companies in the United
States.
This fact was made known as a |
result of an exhaustive investiga-
tion conducted by Carl Hookstadt,
expert for the bu-
reau Of labor statistics of the Uni
ted States department of labor. Mr..
report was first given
publicity at the San Francisco [
of the International AS
5ociation of Industrial Accident {
Boards and Commissions last Sep 7
Lember. and later his report was S
published in full in the December, S
920. issue of the monthly Lazor I
Review. In his report, Mr.. Hook t
tart said:
Comparison Made. v
Probably the fairest and most a
method of comparing b
tate funds with private carriers I
would be to compare the best in C
zach class. Let rs, then. compare d
he competitive fund of California Z
md the exclusive fund of Oregon
With the Liberty Mutual company
II Massachusetts, ass hown by Its