Montana labor news., 1933-01-19
EXCLUSIVE STATE FUND INSURANCE

The American Federation of Labor has insisted for
years that workmen's compensation should not be sub
iect to the fraudulent practices which seem inherently
connected with commercialized insurance written by
private insurance companies operated for profit, but
should be exclusively administered by the State fund
system.
The soundness of the Federation's contention re-
ceived abundant confirmation from the SPECIAL report on
the medical abuses in compensation cases submitted to
Governor Roosevelt of New York by the Committee to
Review Medical and Hospital Problems in Connection
with Worhnnrn'o Compensation insurance, appointed by
hin a number of months ago.
The report found that under the present working out
of the New York workmen's compensation law the in
jured workers do not receive the benefit of unbiased med
ical opinions as to diagnosis and disability; that medical
testimony given in compensation cases is neither COM
petent nor honest; that many fraudulent claims are being
presented, with the connivance Of the claimants, en-
ployers and brokers, and that the system is having a de-
moralizing effect upon physicians.
On the evils developed under the system of writing
compensation insurance for profit, the report said:
"The fragrant fraud and corruption shown in the
Department of Labor records and the evidence adj
duced at special hearings into the workings of com
mercial clinics for compensation cases bring out
clearly the dangers inherent in a system which per-
mits social legislation such as the compensation law
to be used as q new area for private profit.
"The cost to the worker is bad treatment, while the
employers, the insurance companies, and the indus
tries of the State are weighed down with fraudulent
charges. Such profit making clinics have nothing
to offer to the sound administration of the law, and
their continuance is resulting IN a continuous fraud
on both the workers and the industries of the State"
To remedy the manifest injustices to the workers
found in smothering numbers under the private profit
system, the report declared:
1--WE would ask consideration of the adj
~vantages and disadvantages of an exclusive State
fund to write workmen's compensation insurance in
the State of New York"
The report was filed with Governor Roosevelt by How
ard S. Cullman, chairman of the general committee, and
DR.. Adrian V. S. Lambert, chairman of the subcommit-
tee on medical problems.
New York State already has a State fund, but employ
ers have the legal right to insure in private insurance
companies if they so desire.
1t is interesting to note in this connection that the
1882 convention Of the American Federation of Labor
reiterated the position of the Federation against COM
mercialzing WOrkmen' compensation and urged organ
lied labor in every State where private companies are
still permitted to operate to i%naugurate a vigorous cam
paign to have the State legislature set up the exclusive
State fund.
In Melbourne, Australia, members of the bill posters
union asked that King George V appoint his son, Ed
ward, Prince of Wales, as next encouragement.
Edward is a member in good standing of the bill post
ers' union.
AMERICAN