The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1931-06-16
SAYS COMPENSATION
BUREAUS AFFECTED
BY POOR BUSINESS
Wenzel Tells Kiwanis More Ac.
cidents, Smaller PayrolIs
Are Causing Difficulty

How the present depression has
had an adverse effect upon work.
mems compensation bureaus and
companies writing this kind of in
surance was explained to members of
The kiwanis club Tuesday by r. E.
Wenzel, a commissioner Of the North
Dakota bureau.
Rates are heading upward, he said.
because OF reductions In payrolls,
making a higher premium necessary
because of reduced income on the
basis OF established rates; because
economic pressure Is forcing injured
workrnen to reopen old claims; be-
cause disabilities last longer, since
employers do not take men back on
the payrolls as fast as formerly, and
because more accidents are occurring
among the industrial workers Of the
country.
The experience Of, the North Da-
kota bureau from which these facts
were adduced Is similar to that OF
other state bureaus and to the expe-
rience Of private companies which
write this kind of insurance, Wenzel
said.
The reason for the increase in the
number of accidents in proportion to
the number Of men employed is psy-
Geological AZ well as physical, Wen
Eel asserted. He pointed out that,
where workmen are not sure Of their
economic situation, they become de-
pressed and less attentive to their
work than in times when conditions
r better.
Because of factors attributable to
the depression, Wenzel said, the Ohio
compensation bureau will pay out be-
tween three and four million dollars
more than it will take In during 1881
and the North Dakota bureau and
private companies will have expert
enceS in proportion. In mi state
where compensation is written by
private firms, he said. the companies
have been permitted to increase their
rates 81 per cent because of factors
attributable to the depression.
On January I, 1880, Wenzel said,
the North Dakota bureau had an ex-
cess of about 100000 over the re-
quired surplus and 1t looked as though
rates could be reduced. In 1880, how
ever. this excess surplus was reduced
by $78, 1000 because of cuts in the gen.
eral level of wage scales and pay
rolls and in 1881 1t Is expected that
$137, 900 more will be Topped off. put
ting the bureau back to cost basis
by next January without any reduc-
tons in rates.
A popularity of the North Dakota
law which affects the state bureau,
the speaker said, is a provision
whereby a delinquent employer may
be restored to good standing by pay
ment Of premiums after an accident
has occurred.
In one case, he said, an employer
on the brink Of insolvency was un-
able to pay the premium but a hos
pital, which had a bill of more than
$500 against an injured man. appar-
emily advanced the $78 needed to re-
store the account to good standing.
As a result. Wenzel said, the bureau
becomes liable for a claim which will
total about $500.
Eugene Fevold, winner Of an essay
contest on the elements of success,
read his composition to the club and
was presented with a IS gold piece.
The competition was sponsored by the
vocational guidance committee of the
club.
liver Acker and P. E. Byrne were |
named delegates to the Kiwanis dis
trict convention to be held at Minot
Aug. 1927. B. O. Refvem and Jesse
Melton were named a%lternates.