Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-06-19

meet all the hazards arising in the
course of his various duties.
An analogous principle is involved
in the case of the automobile operator
who found in the field of transporta-
ton, in most instances on his own
account, is permitted in every part of
the world to pursue his calling with
out any provision for indemnity in case
of injury to himself or his patrons
AS long as some classes and some
conditions cannot be adapted to the
theory of compensation. the ADVISABLE
ty of making such acts compulsory is
debatable. Further, if the act were to
be made compulsory as to all employ
ments which are now elective, rere-
vision OF rates would be inevitable.
THE application of the theory is still
in the preliminary stages as to cost
and equitable distribution of benefits.
Under the present administration
of the act the rates are necessarily
based on experience and computed by
complicated formulas that are deduced
from the elements of hazard, are re-
Elected in magnitude and frequently in
distinct channels over wide field and
during an extended period.
THE adjustment of rates is not
readily explainable to those who have
not given the subject special consider
alton, but amid all the intricacies of
such problem there is careful at
tempt to evolve specific charge for
each elementary classification which
will be commensurate with the risk in
yolved.
THE serious but indispensable fea-
ture of the present. SYSTEM of compu-
tation of rates is that they are based
upon the past which cannot forecast
accurately future requirements.
The principal uncertain factors
which cannot be anticipated may be
grouped in the following tabulation:
!. The mobility of wage scales due
to imitation and deflation with fixed
compensatory limits.
2. Enlarged real and fraudulent de-
mands for benefits, due to a fuller
appreciation by beneficiaries under
the act.
8. Variable tendencies to mailing
ering, especially emphasized during
periods of Industrial depression and
low wages.
4. Inability to reestablish earning
capacity, under changed conditions
of payroll and age.
0. Expansion or contraction of
working areas, due to the instability
of costs in building construction.
b. The development of a sense of
responsibility among employers and
the consequent neglect to provide
safety devices.
Z. The inclination of some SUPER
visory officials in States which con-
tribute to combined experience to in
sist upon popular rather than ade-
quate rates.
8. The fairness and precision of
state commissioners in determining
awards.
THE ideal theory of compensation
insurance Is the procurement of Sc
curity at cost. The expense must
be borne by the public in those states
where Legislation has prescribed
benefits. For these reasons all
states must be adequate.
1T is obvious that compensation
carriers must obtain funds, from
miscellaneous casualty engagements
of a private character, to provide the
balances of reserves required to Ii
quidate their public compensation
claims, but this method of maintain
ance Is unfair and puts an additional
burden on the individual for which.
ethicaily, he is in no sense respon-
sible.
Upon July 1. 1923, to provide for
an emergency due to infiationary
conditions not then reflected In ex-
listing rates, the Department promul-
gated fiat increase of twenty per
centum on all classifications. AS an