The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1940-01-04
Should Ban The Profit Principle In
Workmen's Compensation Insurance
Complete Application Of the
AFL State Fund Policy
Is Urqed
WHY PAY DIVIDENDS?
Privdte Insurance Cornpdn-
les Writing Compensation
Must Make Profit

FI1Vote insurance OOII1P0u-
les Writing Compensation
Must Make Profit
A strong protest against the con-
tinuance Of writing workmen's COM
pensation insurance by private insur-
ance companies organized on the profit
principle and operated to pay divi-
dends to stockholders was voiced by
Robert J. Watt, International Labor
Representative of the American Fed
Grafton Of Labor, in an address before
a recent meeting of the Air Hygiene
Foundation of America, Inc, at Pitts
burgh, Pennsylvania.
In place of workmen's compensation
insurance carried by private concerns,
with resulting large premiums levied
on employers and inadequate benefits
for injured workers, Mr.. Watt urged
the nationwide application Of the ex-
elusive workmen's compensation State
fund, advocated by the American Fed
Grafton of Labor, throughout the
United States, under which private
concerns organized for profit are pro-
hibited from writing compensation in
surance.
Pointing out that when workmen's
compensation law is passed "the in
terests of the employer and worker
should be as one," Mr.. Watt said:
"The worker is entitled to all the
benefits provided in the law, not only
because it is the law but because his
employer pays premiums for that very
purpose. The employer is entitled to
get this protection at reasonable
rate. The State has the power and it
should be it's duty to tell The employer
that he must guarantee payment
through insurance, and the State also
has the power and it Should be its
duty to see that the premium rates
are reasonable as we'll as adequate.
Abolition of Profit Motive Urged
'"The American Federation of Labor
is convinced that the interests of em-
ployers and workers can best be served
by taking the profit motive out of the
whole workmen's compensation insur-
ance. business. The American Fed
Grafton of Labor is definitely COM
mitted to the establishment Of exclu-
sive State funds in every State in The
union. 4.'F
workers find it difficult to- UNDER
stand why so many employers who
are successful in their own line. Of
business permit those who have di-
rect financial interest in injured
workers to hoodwink them. Workers
are frankly amazed when they find
such employers swallowing whole
statements that are clearly biased and
refusing to look at the picture which
has been unfolding before them for
quarter of century. .
workers wonder when they pre-
sent legislation on this subject year
after year whether employers ever
ask themselves these questions:
"What part of the premium dollar
is returned to the injured worker or
his dependents?
"How much extra is industry pay
ing over and above what reaches the
injured worker or his family?
as there any difference between
losses incurred and losses paid?'
'How does the amount spent for
expert testimony to defeat the in
jured worker compare with the
amount spent for medical care to re-
store the injured?
"If workers spend one-tenth of
their time in extra hazardous work
and nine-tenths in work of ordinary
hazard, does the hazardous premium
rate or the ordinary rate govern?
"Who represents employers at the
hearings on rate adjustment or rate
making?
"Do employers interest themselves
in seeing that an injured worker gets
a fair and just settlement?
workers wonder whether employ
ers pay any attention or care what
happens to the premium dollar they
pay out to provide protection for
their workers. The information is
available.
"The small exclusive State fund of
North Dakota, in operation since 1919,
uses approximately SO cents Of every
premium dollar to pay benefits. The
New York employer who operated
under it's State fund during 1886 and
1887 paid approximately $1.22 for
every $1.OO of benefits paid out, while
during the same two years in the
same State, the employers insured
with private stock companies paid ap-
proximately $1.9O to get the same
dollar to his injured workers.
Private consulting actuaries have
recently completed check up of the
Exclusive State Fund Of Ohio and
found that during the nearly 27 years
of it's operation, Ohio employers paid
premiums totaling $287, OPS, ,655, and
(Confinl1ad on Pore SiYl