The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-08-24

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"Es: W ~, - siiss .iiss BUREAU
HI ldsthat Rates iii Past Have
Been TOO Hi. Ind Re-
/. fers 70 Reductions
ny the
bureau


against the Beulah. Coal Mining COM
pany to compel payment of premiums.
At the same time Judge Coffey held
the "a per cent charge for initial rat
ing made by the bureau to employ
ers not paying their premiums the
first year of the laws operation, from
which refunds were made,on the basis
of the employers experience, was
1. held unjust. This charge; bureau Of
ficials say, was discontinued this
year.
Issues in the case were joined with
those in suits of the bureau against
the Hughes Electric company and
the Bismarck Gas company to COM
pei payment Of premiums, the same
decision being applied to each case.
Judge Coffey, in his memorandum
opinion, states th..l the constitution
atty of the compensation law was not
questioned in the proceeding but that
defendants held tn. raves to be so
unreasonably high as to be confis-
catory. He held that the schedule
rates of the bureau were not con-
fscatory, but complained of the rates
charged.
Review Act.
Reviewing the workmens compen-
sation law Judge Coffey states that
"chapter 1G2 in question is almos.
identical with the l.w Of Ohio, stat
with very complex industrial life.
1t is matter of common knowledge,
that in Ohio, manufacturing and par.
ticularly mining are important indus.
tries Mining there is under very
much different conditions and much
more complicated than it is in North
Dakota. Industrial advancement here
is in it's A. B. C.'s while there ls has
reached a complex state of develop
ment. The North Dakota Workmen's
Compensation Bureau in pvttine
chapter 1862 into operation was re-
quired first to fix rates and classify
risks in this state. For that spur-
> pose rate expert, an sactuary, from
Ohio was brought in who knew moth
ing of conditions in North FDakota
and made little inquiry before the
rates in question as brought from
Ohio were proposed and adopted for
this state.
Judge Coffey said that Ito put this
new program into operation all at
once was prodigious undertaking.
Surplus Exceeded.
He pointed out that the statutory
surplus provided by the law. which
requires the bureau to keep the fund
in solvent condition at all times,
was $4,000 plus s per cent OF the
amounts paid in. He said there was
an excess of $240,O00.
Judge Coffey held that the "a per
cent initial rating was untenable in
that the legislature cannot delegate
legislative authority and said that it
was an unfair rating, saying it did
not appear that the statute contem-
plated any except schedule ratings.
Judge Coffey said in conclusion.
that he did not hold the schedule rate
itself unreasonable and confisca-
tory" adding that they appeared hlg'
and close to the border line.
Judge Coffey said it had come to
his notice that rates were. being re-
duced and the "a per cent initial rat
ing was eliminated, and added, "it
is for this reason that am disposed
at this time to allow the schedule
rates to stand, as fixed by the board,
though in my judgment very high
rate and almost, if not quite, confis-
catory."
Commissioner Elliot, who repre-
sented the bureau in the case, said:
"The Bureau believes that the de-
cision of Judge Coffey will be OF as
sistance in the strenuous campaign
that it is pushing to get all employ
ers in the state to comply with the
law. The Bureaus experience IN
the ccal industry up to the present
time has been that the awards made
for injuries in that industry have
exceeded the premiums received.
This was the undisputed evidence
which was before Judge Coffey at
the trial. The Bureau in its rules
adopted prior to July 1st, OF tnls
wear abolished the "a per cent con-
ditional charge for initial rating
which Judge Coffey in his decision
condemns. This charge was abollsh-
cd because the members of the Bu-
reau we're of the opinion that that
rule was making it more difficult TO
get employers who had not been
complying with the law to come IN
to the fund. The Bureau was then
and is now of the opinion that the
"a per cent conditional charge was
locally sound. 1t has been the en-
deavor of the Bureau to reduce tne
rates to the lowest possible figure
. consistent with safety, and the rates
for nearly all the industries OF the
state have been reduced since tne
frst rates were. adopted, and dlvi.
dends have been declared at the ena
of each of the past two years whicnl
have returned much Of the surplus
back to employers.
"When the rates were first adopt-
ID there was no North Dakota ex.
nerience on which to fix rates, ana
the Bureau did the most sensible
thing that could be done; employed
an actuary who had had broad ex-
perience in fixing rates for this
kind of insurance. In doing this the
Bureau adopted the same method as
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