Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-07-10

one in his relationships to society; Of
the medical expert in his conscien-
tious asacertainment Of the degree Of
incapacity; and, finally, of the indus
trial accident commission in it's ac-
curate exploitation Of the law and
just adjudication or confirmation Of
awards for injuries.
Under the act of 1915 the benefits
were confined to one-half Of the
weekly wages and nothing was paid
until after two weeks of continued
disability.
with such conditions the insurers,
as a class, retained larger percent
age of the premiums obtained from
the then approved rates than was
conceded to be commensurate with
the value Of the services performed
by them.
I'm 1919 the Seventy-nin and in
1921 the Eightieth Legislature ad-
vanced the benefits from one-ha1f to
two thirds and shortened the period
of disability to one week. These
changes Immediately resulted in a
reversal Of conditions for the insur-
ers. With $4,000 less premiums in
1922 than in. 191S-two years that
were similar in their infiationary
tendencies-the losses of 1922 ex-
ceeded those Of 1918 by 1920.
Allowing for 33 1870 increase in
benefits and the shortened period Of
disability provided in the amend
ments Of 1921, the losses were double
those for 1918.
statistics in Maine show that all
companies transacting Workmen's
Compensation insurance in 1922 re-
ceived less than two per centum for
the expenses and reasonable profits
which previously had been computed
at $3.50.
"The ultimate effect Of the con-
tinuance of the present schedule Of
rates, whether an inflationary period
is imminent or not, means that in
surers must continue doing compen-
sation insurance in Maine.
1.-THE majority Of the people. how
ever, still demand the maintenance
Of the law in it's present form. The
insurers, on the other hand, demand
the increased rates to which they are
obviously entitled, and must have,
if they procure sufficient funds to
liquidate the augmented losses.
'An application was made to a
former commissioner for relief but
no definite decision was ever rem
dered. The present request is for a
fiat increase above National Council
Rates, as revised in 1922, Of thirty
per centum.
"a similar demand for fiat in
crease is also contemplated for New
Hampshire, but owing to the fact
that the statutory benefits in that
state are much smaller than in Maine,
the differential has been less start
ling in it's proportions and conse-
quently the increase in rates will not
be so great nor so imperative.
zone strong objection against a
full increase at this time is that
mutual and stock insurers have not
suffered in losses to the same extent.
Thus, if an excessive premium is re-
ceived in one class and distributed
in large dividends, the other class
will encounter a prohibitive COMPETE
ton, in which the first will appro-
pirate to itself all the business; the
logical consequences would then be
an urgent and persistent demand for
lower rates instead of higher. which
might later affect the stability of the
insurers in competition.
at is worthy of consideration also,
that employers already feel the
heavy burden of overhead expenses
and the restrictions and uncertain
ties of industrial operations in all
directions.
1.-THE Insurance Department is
charged with a combinat ton of seri-
Gus obligations. Not only the pro-
lection of every life and conserva-
ton of every dollars worth of prop
erty in the State are within it's pur-
view, but the employment of every
human agency and the development
of every material means in business
must be considered in its action.
ut is an essential function of the
department that all insurers within
the State must be kept solvent and,
in that respect. prompt and full pay