The labor world., 1922-12-09
NOT STATE INSURANCE.

NOAlAOl ludL ll1ele was AO ulOuey Ill
the states insurance fund with
which to rebuild the Winona state
teachers college, destroyed by fire
Sunday last.
A similar structure was burned at
Mankato in February. The loss was
100000 and there was but 100000
in the states fund to cover the in
surance. The last loss is reported to
be 100000, and with no money in
the insurance fund which is now
said to be 100000 short.
This situation" declares the
Herald, Inevitably raises questions
about the plan whereby the state
is carrying it's own insurance. These
questions are two in number: First,
is the state insurance plan wise
Second, has it been handled wisely
when two fires leave it eight hun
dred thousand dollars in the hole?"
The evening paper then couples its
questions with the proposed state
fund system for the payment of
Workingmen's compensation as fol-
lows:
I'm view of the fact that there is
movement to extend the state in
surance plan to cover the very deli
cate and important field Of liability
and workmen's compensation insur-
ance, it is vital that these questions
be answered fairly and fully"
1t is not of the Herald's second
question that we wish to treat. We
have no knowledge Of the states
system in carrying it's fire insurance,
SO We are not in a position to discuss
it. The first question, however, con-
tains the essence of both. "Is the
state insurance plan wise?" 1t is. to
that we are prompted to reply.
In the first place the Herald is
confused as to terms. The state is
not in the fire insurance business at
all. 1t is merely carrying it's own
= insurance on it's own buildings.
1t is relatively in the same posi-
\ tion as the owner Of home who
does not carry any insurance and
+o1>
fire. The only difference may be in
the fact that the state sets aside a
h certain amount Of money every year
in a sort of insurance fund, prob:
ably the amount that it would cost
That's not state insurance. It +
what is commonly known as self in.
surance. Many large corporations
carry their own risks in the same
manner. The United States Steel cor
poration is one of them. It carries
it's own insurance on ships and car
goes, and it's own liability insurance.
IT, must. be good business for the
steel corporation. to make provision
for carrying it's own risks on its en-
ployes and ships. and if it was not
good business it would make q
change.
State liability insurance or the
state fund plan for paying working
mems compensation presents an en-.
tirely different aspect. The law does
not make it compulsory for private
owners to carry fire insurance or
their buildings. 1t does not compel
them to make good any losses done
to their property by fire. There is
nothing compulsory about any fea-
ture of fire losses at all. The state
is not concerned about owners who
Go not insure their property.
The state does, however, require
that employers shall pay certain
compensation to employees injured
at their work, and to the depend
ents Of employees meeting accidental
death in their employment. That is
compulsory charge against indus.
try. The collection of that charge
by the injured employe or depend
ents of employees that have been
killed depends entirely on the, solv-
ency of the employers. If they carry
insurance the charge may be paid,
and it usually is. If they do not carry
insurance and are not solvent the
charge can not or will not be paid
The law fixing the amount Of liza
btlity is certain, but there is no ade-
auate machinery set up to compel
payment in all cases. Private insur-
ance does not fill the bill. It can not
Y for the law does not make it com
pulsory for employers to carry work
i.7i-~''~ "'-'' "o'noansation ins1ranc