The voice of labor. (Cumberland, Md.) 1938-1942, 1940-09-26


required to bring the Maryland
Act abreast OF our modern times
and conditions. The Workmens
Compensation Law was enacted
in 1914. Since then. II was amend
ed in 1916. 1920. 1891. 1895. 1897.
and 1899. However. these amend
ments have failed to touch upon
the basic changes necessary 20
make our Act adequate and mod
ern. A recent survey conducted
By the Na!.c'sal Council on Com
pensation Insurance. private IN.
surance organization. shows that
from the point Of view OF liberal
ity, the Maryland Act dropped
from ninth position among the
various states in 1929 TO twelfth
in 1910. Unfortunately. Our Com
missioners have failed to manifest
SUFFICIENT interest in the making
OF their annual report. TO learn
or make known the new proposals
offered 10 improve Workmens
Compensation Laws. These pro-
posals have come from other state
administrator and commissioners,
the United States Department Of
Labor. labor representatives Of the
various states. and from students
OF such laws.
MUCH DATA
The United States Department
OF Labor. Division Of Labor Stand
ards, WASHINGTON. d. C.. Of which
MFR. thinner is director. is devoted
to the improvement OF state COM
pensation laws and has compiled
much data and information TO this
end. The International Associa-
ton OF Industrial Accident Boards
and Commissions collates the rich
experience OF persons who admin
lister these laws in the United
States and other countries. Each
year there is held in Washington
a National Conference on Labor
LEGISLATION to which come repre-
s,n,atives sent BY the Governors
OF the states OF our nation. and
valuable recommendation eman-
ate from these conferences. Your
Excellency sent representatives
from our own state to the 1899
conference. and ] shall refer 10 It's
recommendations later in this re-
port. I commend this source ma
terial among others TO our Com
missioners and TO those sincerely
interested in improving and mod
ernizing cur Act. Many Of the
accommodations appearing here
after are taken from these same
sources.
Experience by claimants un.
der the Act has disclosed many
shortcomings 10 the Act itself.
I will attempt TO point out the
more ir,pcrtan: OF these. Ger.
tain sections CT the law have
rendered Intellectual or made
uncer.:in in meaning BY judi
cal Interpretation: ! will refer
10 the more impor ant Of these
eases also.
A. THERE SHOULD BIZ An
EXCLUSIVE STATE ACCT
DENT FUND:
A matter OF practical interes.
not only to labor but TO employ
els, Is the need for an exclusive
So c fund. This means. OF course.
thct all insurance required under
tie Act shall be placed with the
c ate Accident Fund and cannot
be placed with private insurers.
The following states have exclus-
i've State Funds: North Dakota.
Nevada. West Virginia. Ohio.
va ihington. Wyoming and Ore
r"a. An exclusive State Fund
v.,.ld certainly seem TO be more
{ ,aomical from the employers
v. point.
:cording to Mr.. thinner:
g" fundamentally. ! think 1t Is the
c1undest thing. Why not fur
r!sh him tthe employer the in
su: ance at the very lowest pos
y''!e cost with no thought OF a
Let Of litigation. which Is the
| "aboo In Workmens COM
sation.
PREMIUMS
There has been a tendency in
recent years for the insurers TO
increase the premiums. although
there was not a proportionate in
crease in benefits from the insur-
ers. Further. statistics show that
the net premium costs OF the State
Funds are 25 per cent to 90 pc:
cent cheaper than those Of private
stock companies. This saving Is
effected by reason Of the fact that
the State Fund is not intended 10
be a profit making institution.
whereas, OF course. the private
carriers operate for profit. Fur
thermore. the extensive duplica'
ton Of personnel and overhead
costs required by reason Of the ex-
istence Of a number of private in
surance companies, has a telling
effect upon the premium rate
charged to the employer.
My information is that for
the year 1887. there were about
sc private insurance companies
doing business In Workmen's
Compensation In Maryland.
Ninety per cent Of these insur-
ers averaged less than $4,000
worth OF business that year.
Picture. then. SO private insur.
ance companies. each with Its
individual overhead costs made
up OF rent. Office equipment. pay
for adjusters, Solicitors, under.
writers. lawyers. doctors. office