Newark leader. ([Newark, Ohio]) 1917-1946, 1922-03-24
HOW IT WORKS.
COMPENSATION BY
LIABILITY ms. CO.'S.
Pres. John H. Walkers Report There
on To Illinois State Federation of
Labor Convention at Aurora
October 1922, 1921.

President John H. Walker, of the
Illinois State Federation of Labor, in
his annual report to the Thirty
ninth Annual Convention thereof, held
in Aurora, ILL.,, October 1922, 1921,
dealt with the Illinois Workmen's
Compensation Law. The Illinois law
compensation by liability insurance
companies. We quote from President
Walkers report so that our readers
may have brought to them again the
outstanding reason for the constant
attack upon the Ohio law by The liza
bility insurance companies and their
cam oufaged organizations and agents,
and the demand of the workers in
ctner states for the Ohio plan.
President Walker said, on this phase
of Workmen's Compensation:
"* There is another aspect
OF this question of compensation and
accident insurance that | want you to
consider with me. Every intelligent
man OF woman agrees that no private
insurance company or private individ-
ual should be permitted to make prof
its out of the death and injury of the
victims of accidents in industry and
that the industry should take care of
these victims and their dependents
immediately after the accident takes
place when the need is greatest.
"The administration and applica-
ton of our present compensation law
is becoming so involved that cases are
being delayed six months and year
sometimes even two years that
should have been settled within
forty-eight hours. These delays are
occasioned by lawyers intervening in
the hope that by trickery and intimi-
dation the victims will agree to accept
less than they are entitled to.
"The present method of the employ
ers insuring themselves with private
insurance companies, and the fact
that the overhead cost of private
insurance company averages better
than 40 per cent of the amount of all
Of the premiums paid to them is ad-
ding still greater burden on the peo-
pie. The establishment of a state in
surance fund out of which to pay the
amounts due these victims of our pres
ent methods of industry who lose their
life, their limbs and their health,
would only cost about two to two and
half per cent.
The insurance companies are the
only real opponents to this kind of
legislation in our state today. great
many employers publicly say they
want state insurance fund, and a
great many more refuse to say any,
thing publicly, but tell us privately
that they want it though they dare
not say so openly or the insurance
companies will either refuse TO take
theiI risk or liability between now and
the time such law is enacted, or that
they will raise their premiums so
much that they will be at a disad-
vantage with their competitors.
"An illuminating statement appears
in the records of the Insurance Divi-
sion of the Department of Trade and
Commerce for the State of Illinois.
The premiums collected during 1919
by companies writing workmen's
compensation insurance were $11,622,-
333.51, and the total losses paid were
$4,070,181.90. Similar figures for
1918 were $9,017,715.02 and $780,
235.46.
"a further item of the same char
acter which is interesting since it
comes from the companies themselves
and shows that the records of the In
surance Department are about cor
rect-appears in tine Chicago Daily
News issue of Wednesday, August 5,
1921. 1t shows that in the year 1921
they received a total income of S8,-
133, ,254.28 and paid out $3,800,371. 81,
and includes statement of their
total losses paid since 1913 up to and
including 1921. These figures show
about an equal proportion of their in
come paid for all losses each year to
be about the same as for the year
1921.
Il would recommend that this con-
vention reaffirm the position taken in
almost every convention since the in
ception of the Compensation Law
that we strongly favor the creation
of State Insurance Fund out of
which to pay the cost of the operation
of the Compensation Law and that we
instruct its officers to push as vigor-
ously as possible a campaign to en-
tighten the people on this subject and
to secure the enactment of such a law
at the earliest possible moment"