Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-03-02
FITZGERALD BACKS
HIS |NDEMN|Ty BILL
District Workmen. Get Com
parison With Underhill
Measure.
PAYMENT CHIEF ISSUE
Former Would Create Exclusive
Fund From Which Compensa-
ton Is Paid Injured.
PAYMENT Chief ISSUE

study the statements of the trainers
cf these rival measures and record
their pre- ference with the committee.
Several days ago The Star present.
ed statement by Representative
Charles L. Cnderhll of Massachusetts,
on his competitive insurance meas
ure," which was distributed by the
Merchants and Manufacturers Asso-
ciation-the three business organiZa-
tions Board of Trade, Chamber of
Commerce and Merchants and Manu-
facturerS' Associa ton having pro-
tested at the hearings against the
Fitzgerald bill.
Repre- sentative Fitzgeralds ex-
pianatiOn of his own measure follows
i'll part:
Placing Cost of Injury.
"Workmen's compensation laws
seek to place the wear and tear on
human life and limb on the particular
industry in which they are consumed
rather than on the general public or
charity Each business should bear
its cost in human life and limb as it
bears the expense of its dumb and
lifeless machines.
In the march of human progress
all hut the five states of the Union.
Arkansas, Mississippi, North Caro-
lima. South Carolina and Florida, hav"
adopted COMPENSATION laws of one
form or another. In some states pro-
lection Of the workmen has been de
creed by the legislature and the en-
ployers left to commercial insurance
Companies to protect themselves
against the hazards of accident
claims. Some states provide for self
insurance under bond by large en-
pioyers or the forming of mutual self
insurance organizations.
sem" other states provide a fun6
to which those employers that desirt
may contribute I'D have injured
workmcn and dep, nlentS paid from
the fund. In some states all of thcs,
forms are in competition. In others
the FUND is exclusive. that is all en-
ployers are assessed the cost as ascer-
. t;Lin"d by aCtuaries and pay in ac-
cordance with the hazards of their
business contributes to the fund
and no employer is permitted to re
main outside even though willing to
provide the insurance in a commercial
conn any.
Exclusive Fund Idea.
This latter is known as the exclu-
sive fund idea and IS the form of the
Fitzgerald bill now pending as H. r.
an in Congress. This is the form
approved by welfare organizations
which have made Il study of this
question and this Is the form univer-
sally approved by organized labor and
unorganized labor SO far as it has
bttit NV W tApItSS llStll.
The Fitzgerald bill provides that
private employers of labor in the Dis
trict of Columbia shall contribute to
the frnd their proper assessments and
tnHt THIS fund Shal. be managed and
diSburSed for the benefit OF the in
Jured workmen by the present fed
eral employees commission, which adj
ministers II similar law for the bene-
fit of 100000 employees of the United
States government and of the govern
ment of the District of Columbia
I'm the state of Ohio WI ere the ex-
elusive fund idea has ieen in opera
ton for years, it a3p ears that the
entire expense of adm n;stering the
law is no greater than that with
would be necessary were tier. 70
fund provid ID by III. gcvernm ant
charged with che ;rnnsioiiitv Of
checking up and supervising the in
surance companies settlements as
has been found necessary in every
state where they operate. insurance
companies must charge 17I2 per cent
Or more for the expense of acuuisi-
ton; per cent or more for admins
frat!on; per cent or more for in
spectfon: per cent more for
claim adjustments. and l Il per cent
or more for taxes.
Cost of Operation.
"The cost of operation by insur-
the expense 30 per cent and more
Where insurance of life or property
Is involved or where insurance of INV
KIND is optional, an insurance agent
may perform genuine public service
by persuading another to insure but
where the compensation to be paid to
injured workmen is compulsory by
law, then there can be no public serv-
ice in competition between insurance
companies for the business.
proponents of the Fitzgerald bill
suggest that where the protection of
Workmen Is made compulsory. it nee
essarily follows that it is also a pub
lie function to provide the lust and
proper means to discharge the ohli-
cation, as we do in the matter of edu-
cation with our public schools. The
rights OF workmen whose bodies are
torn or destroyed in industry should
not be commercial LIKED and profits
made from their misfortunes.
There Is no vested right of capital
to business of this kind, which
would arise only out of the law at
tempting TO protect the injured and
their families. Casualty companies.
which reap golden harvests from this
form of insurance. bitterly oppose the
Fitzgeraid bill, detouncing it as pa
lstic. because it gives no opportunity
for profit.
Charges of Lobbying.
THE insurance companies maintain
n shrewd, learned and skillful lobby
list and an organization behind him
known as the wortmen's compensa-
ton publicity bureau. and, in addi-
ton. four powerful British insurance
Gompanies, namely, the Employers
Liability Assurance Corporation the
General Accident Assurance CORPORA
tion. the London Guarantee and Acct.
dent Insurance Company and the
Ocean Accident and Guarantee Com
pany of London, for the purpose Of
Fighting welfare organizations and
the representatives of labor wherever
an the United States an attempt is
Snade to secure the passage of a law
(which will deprive them of the OPP
aDortunity to profit. While the eco
nomic feature is of great Importance,
the Fitzgerald bill alone solves the
Equally important social problem and
AHminates an ugly source of conten-
ZION between employer and employee.
{ f"In. states where no government
fund is provided, the injured work..
man must contend for the amount
llue him with q Shrewd and capable
representative of the insurance coIn-
pauy whose success is measured by
the meagerness of his settlements
Snd the adroitness with which lie
plays upon the immediate necessities
pf the injured worker and his family
ainff secures the acceptance Of the
ABfalIest sum in settlement.
Even in states which maintain a
commission to pass upon these se.-
course OF years the injured work.
S6gns.., -.ape been underpaid by in.
errance companies more than five
million dollars. An immense sum 10
b ne a1shed out 9hess OF those for wnoss
Even, state funds when brought In
competition with insurance companies
are guilty of these underpayments
because of the example. influence and
competition of the commercial COM
panieS.