The Washington times., 1926-03-02

The Chamber of Commerce of
the United States today formally
went On record IS favoring the
underhill workmen,s compensa-
ton bin for the District, and 1t
the same time expressed it, or
position to the Fitzgerald bill,
which it characterized as one
which awould create 4 nionOpolis
tie state workmen's compensation
insurance state fund.
O,Leary States Views
IN : letter to Representa-
frederick ~. ZihIman, President
John w. O'LeaTy. Of the cornmerce
chamber, said:
THE UnderIiH bin contains the
broad provisions generally recOg
mixed by most Of the States a. fair
and equitable. The benefits % pc
paid to injured employees are Tar
more liberal than those paid IL
many States. The interests Of the
employe as well as the employers
are protected by d WOrkmen's com
pensatiOll commission appointed
by the District Commissioners The
right Of freedom Of contract Is pre-
served 80 that the employer may
elect lust how he VIII provide tor
possible indemnity to his employees
Through self.insurance, mutual In
surance or stock insurance.
III he decides 70 place his In
surance in ID private company, the
Insurance Commissioners OF the
District Of Columbia supervises the
company, not only to insure it sol
vency, but also the reasouableness
OF the rates charged. Furthermore,
1t is possible under this bill to
resort to courts Of law upon cues
tons Of fact or law when neces-
sary.
Interfere With Business
THE chamber is opposed to ii.
r. 487 1.-THE Fitzgerald workmen's
compensation billI because the
enactment Of this monopolistic
State bill represents Governmental
interference in business. In addi
ton it provides for the possible col
lective liability Of all employers in
the District Of Columbia for indem-
hrity to any injured employee rather
than the sole responsibility Of an
individual employer for indemnity
to his injured employees. This meas
ure would take $4,000 out OF the
United States Treasury to put the
Federal Government into the work
mems compensation insurance bust
ness. Under this bill the employer
loses the right Of freedom Of con
tract in that he cannot selfrinsure
nor select an insurance carrier. He
must take Government insurance.
The commission empowered 90
carry on the State fund would nor
only determine the rate and
amount of premium, but also be
charged with the collection Of pre-
miums and the determination of
the amount and payment OF conf
pensation, with no check whatso-
ever on it's decisions or actions.
@Furthermore It possesses full
authority to review its own de-
cisions with right to appeal to the
courts only on matters OF law. In
short the commission created under
this bill combined normal admins
trative functions with the business
Of insurance and has, to q consid-
cradle iegree. the power OF judicial
review. Such concentration OF
authority, we believe, is contrary to
inherent principles of good business
and Of good government.
aside from our position in this
matter we wish to call your atten-
ton to the Appropriateness of VIC
lating the principles OF home rule,
The monopolistic state fund pro-
nosal Oh. r. 4S7l would intrust the
administration OF law applying to
private employers and their EN-
nloyes in the District Of Columbia
to a Federal body created to look
after the interests of employees OF
the entire Federal Government scat
tered throughout the world.
'aThe Fitzgerald bin Is offered as
model. ultimately intended to be
urged upon the various States. The
UnderhiH bill has been prepared
only to meet the conditions in the
District on the assumption legisla-
ton OF this type must be fitted 70
the requirements of the District
just as it has been in the different
States - Is