Evening star., 1933-02-08
PROBE Of WORKERS
INSURANCE URGED
Citizens Committee Would
Seek Congress Action if
Rates Are Not Revised.

Congressional investigation of work
mems compensation insurance rates in
the District, in the event that fair
equitable" rates are not otherwise
reachsd, is proposed in a report made
pubic today by a citizens committee
composed of leading trade and civic
group representatives, which has been
studying a proposed increase of 269
per cent in the District.
The civic group, of which Dr. George
c. Havenner, representing the Wash
ingt1n Chamber of Commerce, is chair
man, approved lengthy report analyz-
ing the whole compensation insurance
problem yesterday. 1t proposed that a
modified or compromise" rate increase
for the District be agreed upon on the
basis of complete figures as to increases
allowed in other States.
Rate Hearing Urged.
This compromise rate" the commit
tee said, should be recommended to
the national insurance bodies or to their
rate-making council, together with a
request for an immediate hearing at
which testimony can be presented by
District civic and trade bodies, the Dis
trict Committees of Congress and other
local groups.
Should such negotiations fail, the
whole matter should be placed before
Congress, with the request that q prop
er investigation be made and that fair
and equitable rates be enforced by con-
gressional action or by general or spe-
cific regulatory power entrusted to such
governmental agency as the Congress
may see fit to designate"
A preventive or corrective" program,
designed to cut down the increasing
volume of losses incurred by underwrit-
ers, also was proposed by the commit
tee. In this connection the group felt
that discrepancies" in the existing
compensation law here indicate the
need for restudy of the law and for
the enactment of amendments to bring
its various provisions more nearly in
line with those contained in the laws
of other States.
Medical Charges Rise.
The group also made known that its
study of the question had revealed "a
rapid rise in the medical charges paid
in connection with the local compen-
sation law.
"The situation is one which readily
lends itself to petty forms of medical
'racketeering,' the existence of which
is recognized and deplored by the local
medical profession" the committee re-
port said. A city-wide accident pre-
vention campaign. in which the Ma
tional Bureau of Casualty and Surety
Underwriters would cooperate, was
proposed as q means of decreasing the
accident rate.
In reviewing the figures on opera
law in the District, where it effects
approximately $4,000 employing firms,
the civic body found that during 1928
and 1929, the first years of its opera
ton here, the national insuranc:ng
comps nies made a surplus of 1913 per
cent in excess of their own fixed ratios,
although for the country as a whole
their losses totaled $24,582, ,654 for the
same two-year period. The loss for 1880
and 1881. according to the committees
investigation, wa: 9.6, or IL per cent
less than the profit percentage for the
first two years.
Good Record Cited.
While believing there is need for a
slight increase in the rates here, the
committee said "Washington's past good
record should be fully recognized in
fixing the amount of the local rate in
crease. 1t should be remembered, also,
that in most States rates are fixed by
law while there is no such regulatory
power in the District, although COM
pensation insurance coverage is manda-
tory under the law"
In adopting the report of the SUBJ
committee, headed by William T. REED,
jr., which made the study, the whble
committee moved to appoint subccm-
mittees to carry out recommendations
contained in the report.
Represented on the committee were
the Washington Board of Trade, Mer-
chants and Manufacturers ASsocia-
tion, Laundry Dry Cleaning Associa-
tion. Real Estate Board, Typographical
Union, Building Trades Employers As
sociation, Motor Vehicle Owners AS
sociation, Builders and Manufacturers
Exchange, Automotive Trade Associa-
ton, Electrical League, Typothetae, and
Employing Bakers Association. The
committee was called together August
%, and has conducted series of meet
ings since
The directors Of the Chamber of Com
merce also acted favorably on the rec
concentrations