The labor world. [volume] (Duluth, Minn.) 1896-current, 1922-06-03

/ uay last week DelOfe the -cOmpenSa-
| tion bureau of the state industrial
! commission it was learned that a
! reduction Of 1ela per cent in insur-
' ance rates was to be made.
y, w. H. Oppenheimer, attorney for
rthe Minnesota Employers associa-
tion, charged at the hearing that the
presant rates had been based on
false figures and that the employ
ers had been paying excessive rates
FOR more than year. He asked that
the new rates be retroactive from
June 1. 1921, which would require
the companies, it is estimated, to
credit employers with from 100000
to 100000 in premiums. The insur-
ance companies are willing that the
new rates shall apply as Of March
1, 1922.
d" The profit system in WOrkingmens'
compensation is the curse of it. 1t
is bane to employees and employ
ers. 1t introduces into the settle
ment of claims arising out Of indus
trial accidents an element not inter-
ested in the public welfare, or in
the comfort md convenience Of in
jured workers, but chiefly in the
moneymaking side of the business.
That always has first consideration.
Just compensation and humanity
/ come last. and Frequently only un-
J der compulsion.
W Contested His Claim.
y Here is an Xample--EdWard
IN garage He was compelled to
1n,x .1o 10
: ards the west where he suffered
sun-stroke during the excessive
,(E It Of last June. when the ther-
}meter was registering 95 deg. He
b, 3 been totally incapacitated ever
ce, and in the meantime a wife
<three children .lsve been des-
ch for the insurance company
is to pay the 1888 compensa-
.>.o..e .ethelered by the referee. ~ -
p, The injured nan was put to the
= additional expense and trouble of
engaging counsel to fight his case.
I They won in the trial court and won
aagain in the supreme court last Fri
day, after a delay Of Il months. The
Sinjured mans employer and the
Maryland Casualty company. his in
tsurers, contested the case.
In every country in the world
swhere private insurance companies
sare still permitted to write indus
strial accident insurance the Same
S;tory is told as in the sun stroke
3case in Minnesota above referred to.
TIn the countries having the state
gfund plan there are few controver-
! fsies and general satisfaction OBJ
Z 'tains.
For State insurance.
: Many Minnesota employers at the
outset of workirgm cns' cOmpensa-
: ton in this state recognized the i'm
Iportance Of doing away with the
profit-mahing private companies. and
they formed mutual insurance com
! panies instead. These have in most
, instances been doing very we'll.
=, The Minnesota State Federation
! of Labor is committed to the prfn-
/ ciple of state industrial insurance
That is it -avors the establishment
Of d state fund for the admin stra-
, tom of the work.. mems compen-
satib bn act. The fund would be ere
ated by payments into it by em.
Z ploHers. They then would not be re-
{ qui ired to carry private or self in
! sup Tance.
q frwe.ve years ago the editor of The
! & Labor World went to Europe tc
Study the operation of workingmens
& compensation systems in foreign
+ countries. He came back fully con
!. Ninced that the state fund plan Of
'pered the best solution to the ques
ion from the standpoint of tht
State, the employers and the injured
Workmen. Such a plan would ne
| cessarily remove private and mutua
! insurance companies from the fielt
of industrial accidents.
Much Waste, Obtained.
| Under employers liability, baset
, on negligence, nearly 10 per cen
4 of the money paid by employers fo1
y protection against law suits and fol
q compensation to injured emplOye!
D was, taken by insurance companies
/ Almost so per cent of the balance
/ went to lawyers for the injured men
Only Is cents on every dollar pait
by employers reached the pocket
of the injured. There was a vast
of "a per cent under the old system
The. workinEmens' compensation
act removed IN large measure IN
nee essity for the. personal injury at
/, torney. It did not clirninate the in
/ sut lance company. 1t only saved I
4 per cent of. the waste that obtaine'
II under, the old system.
~ The insurance companies were no
.ohganized to carry orkingmens
IL compensation. They were purely EN-
+ bloyers' liability companies. Whe
employers liability was changed t
+ Workingmens' compensation the pri
y :. ..ate insurance companies wer
3, forced to change their liability plan
!, to accident insurance. 1t was ne'
! field to them, a field il which the
had no experience in this countr,
g The, rates they i:',r sed upon EN-
~ ployers were based on guess NOR
n than on experience" t%.g ~
IN Rates Are, PrOthbitivc.
i Labor lecognized d sthat when CON
Epen4ation was extended to all in
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