40 



HARDWOOD RECORD 



woods. As an instance, the output of cross-ties in the state in 

 1909 was 142,600 of white oalc and 12,300 of other species. All 

 these ties are of high quality and are hewn out by the farmers 

 and delivered on the railroad right of way. In 1909 there were 

 5,700,000 oak pins manufactured in the state, over 600,000 locust 

 pins and 3,960,000 shingles. Poles are produced mostly from chest- 

 nut and represent a considerable industry. 



The manufacture of locust insulator pins was formerly of con- 

 siderable importance, but on account of the scarcity of supply the 

 industry has dwindled to a small production. The introduction 

 of the oak screw box to be used over iron pins has weakened the 

 locust pin market. In addition, North Carolina factories turn 

 out large numbers of hickory handles, porch columns and pumps. 

 Other minor industries are the manufacture of bobbins, spools, 

 rollers, shuttles, and also the manufacture of pipes from the 



mountain ivy. In these various industries are consumed poplar, 

 linn, cucumber, sassafras, beech, birch and maple. The manu- 

 facture of bowls from poplar blocks is a small industry, but rather 

 interesting. The blocks are made by cutting the logs into sec- 

 tions, as long as the diameter of the logs, and then splitting them 

 in half. They are delivered at the mills in this form for from 

 $10 to $15 a thousand feet. Certain sections of the state are 

 famous for their furniture production. 



The information contained in this article is derived from bulle- 

 tin No. 23 recently issued by the North Carolina Geological and 

 Economic Survey in co-operation with the United States Forest 

 Service. . The bulletin contains specific information about the vari- 

 ous individual species of commercial importance in the state and 

 can probably be secured by writing to that society. The bulletin 

 was prepared by .T. S. Holmes, forester of North Carolina. 



^ p;TO<j;BK^>^;/^iiiibtTOtS4iatov>5 ^Si^^ ' a;tt»» s ^T' 



The increase in the number of state workmen's cMnipensation and 

 employers' liability laws, as well as the possibility of a federal 

 statute on the subject, has entranced the interest of lumber manu- 

 facturers and dealers in the question. Employers' liability insurance 

 is now becoming as great a necessity as fire insurance, and with the 

 legal requirements as to compensation, which will probably be gen- 

 erally enforced in a few years, lumber interests are directly concerned 

 in the methods of paying this increased tax upon business. 



In this connection plans, which have been outline.d for a change in 

 the system of fixing rates for liability insurance, are of interest to 

 the entire trade. Heretofore the method has been to fix the rate for 

 a class or industry as a whole, and to charge the same rate against 

 all the individual risks in that class. Thus, as a rule, a sawmill gets 

 the same rate, whether located in Wausau or Memphis, and with the 

 exception of a few isolated cases which do not affect the general 

 system, every lumljerman operating a yard must pay the same rate 

 as every other yard man. The amount of the premium, of course, is 

 based on the payroll, the rate being figured on each $1,000. 



The defects of the system are obvious. In the first place, it is plain 

 that the hazard involved in one plant is not and cannot be the same 

 as that involved in another. Therefore to charge the same rate 

 against it is either to collect too little or too much for the service. 

 If too little is collected, some other employer in the same class pays 

 the difference. If too much, the excess goes to pay for the deficiencies 

 of someone located elsewhere. It is just the same as deciding that all 

 wood-working plants should carry the same fire risk, and in fact the 

 analogy is made stronger by reason of the possibility of regulating, 

 reducing and almost eliminating the accident hazard just as the fire 

 hazard can be reduced to the vanishing point with proper precautions. 



Inasmuch as the companies writing employers' liability insurance 

 do not want any more losses than they can prevent, they have been 

 endeavoring to secure a general improvement in sawmills, lumber- 

 yards and other plants with the idea of redvicing the number of 

 accidents. In the case of a sawmill, planing-mill or other wood- 

 working concern, it is conceded that a great reduction in the risk can 

 be secured by the use of giiards and other devices which will protect 

 employes from the danger of accident. Saws should be guarded with 

 the practical and efficient devices provided for them by the manufac- 

 turers; belting and shafting should be enclosed, and gears and cogs 

 boxed. With these precautions, and with care taken to secure plenty 

 of light for the plant, the number and seriousness of accidents can 

 undoubtedly be reduced. 



However, the underwriters have taken various methods of arriving 

 at this result. Some of them have maintained inspection departments, 

 which have examined various risks written by their agents, discovered 

 the need for additional protection, and made recommendations along 

 this line. In a large number of cases the recommendations have been 

 adopted and conditions improved. On the other hand, other companies 

 have taken whatever business is offered, writing it at the same rate 



as that given to the risks uliidi luive been improved either at the 

 initiative of the owner or the suggestion of the company. It goes 

 without saying that in the former the loss ratio is certain to be less 

 than in the latter, where all risks are taken without examination, and 

 where an inspection department makes no effort to secure corrections 

 of defects. 



Again, in some cases the installation of the needed protective 

 devices costs a considerable amount of money. While every employer 

 of labor realizes fully the desirability of having as few accidents as 

 possible, from a standpoint of business as well as humanity, the fact 

 that he is "covered" and will be protected from loss even if he 

 should suffer an accident, undoubtedly has a retarding tendency as 

 far as improvements are concerned. The niggardly or careless 

 employer in this case "takes a chance," especially as this attitude 

 is favored by some superintendents and workmen, who insist that the 

 installation of guards makes it impossible to turn out as much or as 

 good work as without them. This belief, however, is not generally 

 shared. 



Were the sawmill man to be informed that by installing the neces- 

 sary guards he could secure a material reduction in his rate, just as 

 in the case of fire insurance, where a considerable reduction always 

 follows an improvement in the condition of the plant, it would become 

 advisable for him to make the suggested changes, merely from the 

 viewpoint of selfish interest. If a mill is protected by the installation 

 of a sprinkler system, chemical extinguishers, watchman service or in 

 any other way which makes the spread of a fire less likely, the rate 

 automatically goes down. There is no reason why the same thing 

 should not be true of liability insurance. 



The companies writing this class of business have realized that 

 their system was wrong, and have been considering plans to change it. 

 They have finally decided to institute a schedule rating system, under 

 which every individual risk will be rated and compared with the 

 average or standard in its class, if conditions are good, the rate will 

 be low; if they are bad, the rate will be high. This will mean that 

 the operator with a plant which encourages accident will find it to his 

 interest to improve it and make it difficult for men to be injured 

 while in his employ. Even if it is necessary to spend a good deal of 

 money to secure this result, the expenditure will be a good investment 

 because of the lower premium which will be charged. 



Besides actually enabling the companies to secure lower loss ratios, 

 and the purchasers of liability insurance protection to get indemnity 

 for less than it has cost them heretofore, the number of accidents will 

 be greatly decreased. Thus the insurance companies and the employers 

 will be jointly rendering the community a service of considerable 

 magnitude, and will be adding to the sum total of human wealth and 

 decreasing the sum total of human suffering. This is a consummation 

 devoutly to be wished. 



The institution of the [>lan will require nuich study of statistics and 

 hazards. In the lumber business each machine used and each opera- 



