The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1927-04-01
OPPOSITION TO
INSURANCE ACT
MAKES SHOWING
Robertson, DAILY and Others
Cite Figures to Prove
Plan Unworkable.

In another two-hour session of the
| House Committee on Labor last
night the dement's of the Industrial
Insurance measure were given pro-
| ninence, not a single defender of
he bill appearing before the Com
| nittee. r. +. Robertson and J. p.
| )aly were the principal speakers at
he hearing, both introducing com
'aiativ1 figures to support their con
cntion that the measure, as appli ID
Alaska, was not only unWorkabe
but would be burden to both in
'ustry and to the working man.
While it is possible that Chairman
iaffney plans to hold other hearings
N the subject. it was not 50 IN
'icated last night. and it is believed
hat no further public discussions
will be held by IT, Committee. 1t is
expected it will bring in its report
within a short time.
Other Also Speak
In addition to Messrs. Robertson
md DAILY, j. A IIellcnthal, H. l..
Faulkner and l.. II. Mctzgar, Super
ntendent of the Alaska Juneau
made short statements, each .oppos-
ng passage of the bill Mr. Metzgar
'onfined his statement to The method
Is2d by his company under the eX-
sting compensation law which, he
said, he believed was generally salts
factory.
Mr.. Robertson, who opened the dis
uSSiOn on the measure, reviewed the
history of the development of the
present compensation law He de
Jared that under it during the past
wo or three years there had been
generally no complaint about the
aw Itself. 1t has a fixed schedule
or injuries and death fixing rates
l1f compensation which are very lib
'ral, in fact, higher than the average
FOR the country, and near the very
top of the list. The North Dakota
law, he said, is higher generally. bnt
even il is lower in some instances
than the rates fixed by the local
statute. He cited the rate for The
loss of an eye, Alaska allowing So
1870, while the North Dakota schedule
allows $2,160.
Compares Two Measures
He compared the North Dakota
o't WIN tIdl p!ODOSeu LOT lHc lel-
ritory, and in a prepared statement
submitted a list of comparative rates
showing that the present Alaskan
rates of insurance were in many
cases less than those of the STATE
Industrial Insurance Act of North
Dakota. He cited recent recon-
mendation of the Insurance Com
mission of that State for the reduc-
ton of the $4,000 death benefit to
$4,000 to show that even the Com
mission regarded some of the State
schedules as too high to be sup
ported by industry. He pointed out
that the proposed rates of compen-
sation in the bill under discussion
were even more extreme than those
sought to be reduced by North Da-
kota
He submitted Illuminating figures
on the cost of administration in
North Dakota. During the past year
it cost that State more than $4,000
for administration and, limited by
law to $4,000, the Commission re-
commended its limit be raised 10
100000. He read an impressive list
of the staff required for administra-
tive purposes and declared it was
not unreasonable to suppose Alaska
would require at least as large if not
larger. force to administer a law of
the same kind owing to the greater
area and more scattered industrial
community found in the Territory
He compared the industries in the
Territory that would be covered by
the proposed law to those covered in
North Dakota and asserted that the
enactment of the bill would only
result in still another tax the Ter
ritOrys basic Industries.
In conclusion he pointed out that
such a law would not accomplish
the very thing urged as the prin-
cipal reason for its enactment-that
it would not insure compensation to
employees of individuals or firms
without funds. The best that could
be expected. he said, was judg-
ment against the employers in such
cases, and a judgment was worthless
unless there was money or property
to satisfy an execution.
Not Locally Workable
| For the same reason that Alaska
legislators have uniformly, in the
past 12 years rejected all proposals
for a general property tax, the bill
should also be rejected, declared Mr.
Daily. Conditions in Alaska are oil
such a nature as to preclude it's sue
cessful operation, he argued. Cost oil
administration in land OF sucf
vast space, great distances and scat
tered industrial development. would
! be so excessive as to make it {
topheavy institution, burdening botf
| industry and labor unduly and ben
efitting neither
He briefly reviewed the origin OF
compensation laws in Alaska and thu
causes for litigation under them. HI
declared it was impossible to enac
la comDensatiOn law under whicl