Evening star., 1921-05-16
SCORES fitzgerald
INSURANCE BILL
Witness at Hearing Declares
Proposed Law Is Monopo-
liStic and PaternaIistic.

against the Fitzgerald bill t. create
compulsory state insurance for
domestic employees as we'll as those
engaged in hazardous employment
/, the time Of the subcommittee on this
F. legislation of the House District COM
mlttee was taken up this morning
with IL debate on the merits of organ
lzed labor. which was admitted by
! Chairman Fitzgerald to be entirely
beside the question.
| The discussion of the merits of or
sanized labor was provoked by Rep
| resentative Underhili of Massachu
sets, member of the subcommittee
who asked Il number of questions of
/ r. J. Duffy. chairman of the indus
trial insurance commission of Ohio
who said he had been a labor leader
before he undertook the administra-
| ton of the workmen's compensation
law in Ohio.
| Charles ]. Columbus. representing the
! Merchants and Manufacturers Asso-
citation, asked who the witness was
ana whether he was a resident of the
/ District. Mr. Columbus was ac-
! companied by NJ A. Ieese, chairman
! of the law and Legislative committee
! Of the Merchants and manufacturers
I Association, who asked the right 10
! fiie brief setting forth the opposi-
! tion of the business men in that as
| Witness Closely Questioned.
! Edward S. Brashears. who has
charge of presenting the opposition
| of the Washington Board Of Trade.
closely cross examined Mr.. Duffy and
! other witnesses, with view to pune
turing a number of the arguments
which they presented in favor of COM
pulsory state industrial insurance.
| Hill Montague of Richmond. Va,
past president of the National Frater-
! nal Congress Of America, and a mem
| ber of it's executive committee for
! eight years and who also is a mem
| ber of the board of trustees of the
! Insurance Federation of America, rep
r"sentins fraternal societies of the
| country on this board, protested en-
phatically againEt the passage of the
Fitzgerald bill. Saying he was acting
! on twenty-five years experience, h-
! declared that the bill which it is pro-
posed to foist on the District Of Co
! the other states to copy is monopolis-
| tic. paternalistic. not needed and
! should not pass. He told the members
| of the subcommittee that he was
! speaking for the voters of the coun-
| try in telling them that this legisla-
! ton must not be passed.
Hearing Goes Over to Thursdax.
The hearing was continued with
| Thursday morning set as a tentative
| date. Chairman Fitzgerald Of the sub
| committee. who is father Of the bill
| under consideration, said that Repre-
sentative Enderhill of Massachusetts
| has asked that the Massachusetts,
commissioner be invited to testify at
the next meeting. Representative Fitz-
gerald said he hoped to end the hear
! ings after the next meeting.
Henry Nolva- representing the Gem
trail Labor Union. said that the union
! il thoroughly in accord with the Fitz-
gerald bill in every detail. Repre-
| sentative Underhill told Mr. Nolva
I'VE are all agreed as to tho need for
insuring hazardous employment and
| as to the desi bility of enacting an
! industrial insurance law"
Representative Fitzgerald announced
that in reply to suggestion from one
| of the opponents of the bill he had
| applied to the Attorney General for
| an opinion on it's constitutionality
and had received a very exhaustive
opinion to the effect that the Attor-
! ney General did not have to give an
! opinion on it's constitut!onality.
IncIusion OF Domestic Servnnts.
provoked great opposition in Wash
ington that the Fitzgerald bill in
ciudrs domestic servants and thus
imposes tax upon practically every
| household throughout the District.
Mr.. Nolva said there was just as much
any other, and by way of example
suggested that a servant might be
given rickety stepiadder to use.
Representative Fitzgerald said he
had received a report that during the
| last year three persons were killed in
domestic service in the District He
asked that he be supplied with de.
tails regarding these three caaes
Mr. Montague said those for whom
he said he was authorized to speak. are
by the national government or the state
government. because they consider it
mOnopo!istic and not the proper sphere
of the government. He said that the
insurance business is highly technical
and can best he handled by private
companies. He warned the COMMITTEES
! that the government has no authority
in this question. because the Supreme
Court has decided that insurance is not
matter Of interstate commerce. He
SAID il will be Il II righ: TO have work
mems compensation statute and a gov
eminent commission to establish
ciaims. but that is az far AS the gov
ernment should go.
Ohio Law Reviewed.
Mr.. Duffy reviewed the successful
operation of the Ohio law. which he
said was started without a cent of
working capital and which has now a
clear surplus Of about S. 10000 The
u,
been over Is per cent Of the rate
charged in other states. He argued
that workmen's compensation and in
duStrial inaurs nee were cerated by the
states AS "A matter of public policy. and
so IL is reasonable for the atate to con-
| troll and even monDpoiiZe this business
which it has brought into existence
Mr.. Prashears asked Mr.. Duffy mann
pointed questions. one Of which was
how much Ohio lost because the pre-
ni,ims are paid into the state funds
and are tax free. while thev would
! have been subject to taxation IL they
; had heen paid to private companies.
Mr. Bra shears emphasized two points
on which opposition Of the business
| men is made to the Ohio law OF
any other plan Of state insurance ex-
pense and taxation.
/ Charles r.. Ne~bit Takes Part.
| Charles r. Nesbit former insurance
| commissioner OF the District ques-
toned Mr.. Duffy regarding the length
Of time that elapsed between the ap-
| plcatiGn for payment of state in
surance and the date on which the
| insured received cofnpenSat
| Representative Fitzgerald invited
| briefs to be filed by those who have
| emphasized the danger OF monopo-
| bill.
Thomas H. Jones. representing the
| stationary engineers OF the District,
emphatically indorHed every feature
of the bill as it is.
! Rev. r. A. Mcfiowan. assistant di-
| rector OF the social action depart
| nnent Of the National Catholic We'll
I fare Council, said his organization is
| in favor Of a workmens compansa-
| tfon law. but is not on record for
compulsory state insurance. because
| he considers II a matter of detail He
| ~