Evening star., 1924-03-06
OHIO'S INDUSTRIAL
INSURANCE PRAISED
Morgan Stresses Advantage of
State Fund Over Private
Companies.

Advantages Of the Ohio state fund
for industrial insurance over self in
surance by employers were discussed
by Representative William M. Nor
gan of Ohio at the closing hearing on
the Fitzgerald workmen's compensa-
tion bill before special subcommit-
tee of the House District committee
today
Representative Morgan explained
that the Ohio Chamber of Commerce
maintained workmen's compensa-
tion league composed of insurance
representatives. He explained that
the lowest rates can be obtained by
protecting employees in industry, and
that 1t Is to the interest of employ
ers and insurance companies to throw
Gil possible safeguards around the
employees.
Ohio uses every means to protect
workmen and so has big advantage
over competitive plans. Representa-
tive Morgan said that Representative
Fitzgerald, author Of the compulsory
industrial insurance measure for the
District, was a member OF the or
ganization which fought the exclu-
sive fund in Ohio. He quoted from
Carl Hookstadt, who testified that If
all the states would adopt the Ohio
s50,000,00O year for the employers.
In Ohio 1850 insured under the state
fund in 1921 and only $50 had self in
surance. Now the latter number has
been reduced to 800.
Case in Massachusetts.
He called attention OF the COM
mittee that in Massachusetts, the
home state of Representative Under
hill, who is pushing a rival measure,
settlements made by self-insurers in
80 per cent of the cases are only 90
described one particular instance
where widow was paid $4,000 when
she was entitled to $6,500., The en-
ployer made this settlement, which
was approved by the judge of the
probate court. The widow later ap-
pealed to the Industrial commission,
which ruled against the employer.
The employer objected on the ground
that the settlement had been made
and approved by the court. This case
is now pending.
Representative Morgan also de-
scribed f1fty-eight cases against the
private employers after the industrial
insurance commission had made Its
award. This was caused largely by
Ambulance chaser lawyers, who in
Huence the people who have been in
jured, telling them that these awards
would be overridden and that they
wOulQ De given III uCH Greater
amounts. In consequence some of the
suits asked $4,000 and 100000. In
the 1ifty-eight cases the amount sued
for was $1,710.620. or an average Of
$4,000 a case. The settlements re-
covered were $174.4sO. or about $4,000
a@case. OF this the attorneys and
court costs took $61,06S, or SO per
cent Of the amount.
The net amount per case, after
lawyers were paid, was $1,955. The
total allowed under the compensation
law was $163.00O.
Date OF Settlement.
The average date of settlement was
two years and five months. The cost
to the employees was $41,875. The total
that the insurance cost $4,000 more
than II would have cost under the state
fund.
The> employees and the employers
have both found that insurance is
cheaper under the state fund, and for
THAT reason they are patronizing the
state fund rather than private COM
panies or self-insurance, Representa-
tive Morgan told the committee.
He laid before the committee sta
tistics compiled by the Ohio State
Manufacturers Association showing
that the average rate paid for all In
duatries in Ohio Is 1866 per cent
while in New York It is 3.4237 per
cent, In California 2.5876 per cent,
in Michigan 2.0S91 per cent, in uli-
nois 2.0416 per cent and In Kentucky
2.32. 30 that in all these states the
rate Is higher than in Ohio under
the state fund.