28 



HARDWOOD RECORD 



compensation law of the New Jersey type, each being eonipelled to 

 carry insuran^ie in regularly licensed concerns operating over the 

 entire country, and thereby having sufficient risks to establish a 

 scientific average, the situation that confronts the Dupont people 

 foiild not exist. 



This law treats the relation of the employer and employe not as 

 wholly public in character but as wholly subject to domination by, 

 the state. The employer can make no contract with his employe as 

 to compensation to be paid in case of injury; the state makes that 

 for him. In case of injury the employer can not make settlement 

 with and payment to his employe; the state takes that right to itself. 

 The whole administration of compensation has been taken into the 

 control of the state. However, the state assumes no financial respon- 

 sibility. The plan is uu-American — paternalistic and calculated to 

 discourage real progress along lines of correct, just and equitable 

 workmen 's compensation laws. 



A commission of the federal government which for months con- 

 sidered the subject and compared the acts of our several states and 

 the laws of European countries, and heard exhaustive arguments 

 made by those advocating a system of insurance administered by the 

 slate, unanimously reported against such a plan. In its report that 

 commission has said in substance that it was influenced to this view 

 for the reason that if the individual employer was made responsible 

 simply to his own employes (either directly or through insurance 

 with competing companies where there is a chance of securing prefer- 

 ential rates for safe and humane management and equipment) the 

 effect would be to influence him to exercise more care in the conduct 

 of his business, in providing safe machinery and careful fellow work- 

 men, which incentive would be lacking if he were merely taxed or 

 assessed for a common fund. 



Further, that compelling the owner of the modern, well equipped 

 plant to contribute to pay for the injuries and death inflicted by 

 inadequate and carelessly managed plants could work an injustice 

 and would amount to a premium on carelessness and a penalty on 

 good management. 



In considering the matter under discussion we should not confuse 

 the matter with social insurance schemes now being agitated, such 

 as old age pensions and unemployment insurance. These are purely 

 social movements in which society at large is interested. 



We all agree that in principle workmen's compensation is right 

 and should be adopted, but it is peculiarly a subject that should be 

 removed as far as possible from politics. 



"The trail of state insurance is uncharted. Its course runs 

 perilously close between the Scylla of Socialism and the Charyb- 

 dis of organized graft." 



The employer should not, be forced into the insurance business and 

 then be compelled to accept a political management. 



Why is it that iuterinsurauce has proved such a success? Is it not 

 due to the fact that the risks are selected and the management in 

 experienced and skilled hands? How long would one of these organi- 

 zations last if turned over to a lot of politicians to handle? 



The whole doctrine in reference to workmen's compensation is new 

 to this country. 



Industry in a large sense is still more or less in its infancy in the 

 western, northwestern and southern states. 



Now if we are to accept this new industrial principle of compen- 

 sation why should we go further and superimpose on this new de- 

 parture the experiment of state insurance > 



Exclusive state insurance has never been tested up to this very hour 

 save and except in Norway, and in that country a constant deficit 

 stares the people in the face, a deficit that nuist be made up from the 

 general revenues of the nation. 



It is also important when we are discussing these economic and 

 social laws that we keep in mind the fact that our civilization and 

 business environment are vastly different from similar situations in 

 foreign countries. Anyone at all familiar with the important subject 

 of insurance knows that it takes many years to acquire that kind of 

 experience that will demonstrate that a given insurance plan is well 

 grounded. How long will it take a state to prove to itself that this 

 political insurance plan is a success? And if it should prove a failure 



the handicap business would be under and the disaster accruing to 

 the whole people would be very great. 



Consider this thought for a moment. In adjusting claims the 

 political adjuster would have on the one hand the business interests 

 of the state to consider and on the other hand labor unions to deal 

 with; that is, if in a given sense the laborer felt that he should get 

 more liberal treatlnent than was. accorded him the politician would 

 be running the risk of the disfavor of the union to which that special 

 laborer belonged. We know from experience that m politics much 

 goes by favor. This condition would be intole'rable from a strict busi- 

 ness standpoint. Then why run the risk of it when there i,'^ no need, 

 and especially in view of the fact that the great principle of work- 

 men's compensation is not at all dependent upon state insurance? If 

 we are to test state insurance then it should be elective, as in Massa- 

 chusetts and Michigan. That is, the employer has the privilege of 

 coming under a state insurance plan, or carrying his own insurance, 

 or carrying his insurance in inter-insurance or licensed companies. 

 Under this theory if state insurance is the most effective it will prove 

 itself and will gradually push aside all other methods. If it is not 

 effective then no very great harm could have been done. 



'"In all matters of social reform and betterment it is difficult to 

 find the golden mean between doing too much and doing too little, 

 but this mean must be found, or, in the end, what was a blessing will 

 become a curse. ' ' 



I regret that time limitation will not permit me to discuss this mat- 

 ter at great length. I should have been pleased to go into the char- 

 acter of a law which in my judgment would best meet the needs of 

 the industry. This I can not do. However, permit me to urge upon 

 you seriously to have a committee appointed and that the business of 

 this committee be to make a careful examination of the laws that 

 have been spread upon the statute books, and from such study and 

 investigation draft a model bill. In this connection I seriously 

 recommend your consideration of the New Jersey law and the Mich- 

 igan act, because I feel that these two measures, in a general way, 

 comprehend the best thought thus far conceived touching this im- 

 portant subject. 



If you appoint a committee such as I here suggest this committee 

 should evolve some plan whereby the representatives of labor organi- 

 zations could bo met and conferred with, because I know that you are 

 just as much concerned for the interest of the employe as you are 

 for your own interest. 



These acts should be so balanced as to safeguard business as well 

 as labor. This can be done, my friends, if business men will but 

 bestir themselves. 



I wish that every word of Mr. Cruikshank's speech could be em- 

 blazoned upon the hearts of the business men of this nation. I was 

 indeed gratified to have the privilege of listening to him. He has 

 pointed out to you the great and crying need of the hour. 



The important problems of business should be adjusted by business 

 men and not by politicians. Compensation laws should be moulded by 

 the needs of business and not by the vagaries of self-serving poli- 

 ticians. 



Attack on the Wooden Car 



On June 17 a bill was introduced in Congress by Representative 

 Roberts requiring railroads to substitute steel for wooden passenger 

 ears. The purj)ose of the bill is to insure greater safety; but if the 

 bill becomes a law its effect will likely be the opposite. Steel cars 

 are not as safe as those of w-ood in case of wreck, except that they 

 are less likely to burn. The metal crushes and buckles under im- 

 pact where wood 's elasticity may save it from crushing. Passengers 

 have a better chance to escape from a crushed wooden car than from 

 one of metal in the same condition. Aside from the element of 

 greater safety, the wooden passenger car is preferable in other ways. 

 It is more elastic and yielding, consequently it rides more smoothly. 

 It is cooler in summer and warmer in winter, and it weighs loss, 

 making the train easier to handle. If Congress undertakes to legislate 

 wooden passenger cars out of existence, many good points in their 

 favor will be brought out which have not been given due consideration. 



