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W^orkmen's Compensation Beneficial H 



In an article on Workmen's Compensation, the Manufacturers' 

 News of Chicago says that when the principles of workmen's com- 

 pensation laws are thoroughly understood in America — as they are 

 in Europe — their practical effect known, their scope and operation 

 determined, it will be found that they have contributed much to the 

 sum total of industrial and public good. Every ' ' humanizing move- 

 ment" and each systematic effort to advance industrial progress has 

 been received with skepticism, subjected to severe criticism and 

 marked hostility. Time and practical experience have, however, uni- 

 formally turned skeptics into friends and critics into champions; all 

 opposition and hostility have soon been swept away, and the world 

 wondered how and why former conditions were ever tolerated. 



If one-half of the energy that is now being exerted to nullify the 

 Illinois workmen 's compensation act and resist its operations were 

 put forth to effectuate its purposes, the state of Illinois would make 

 unprecedented progress within twenty-four hours, and industrial 

 strife, turmoil and discord would soon be practically eliminated. 

 Such action would serve as a signal for intelligent co-operation and 

 the state, the employer, the employe and the public would all swim 

 with the tide in the same channel. 



Industrial progress requires the "human touch" between the 

 employer and the employe, who are a reciprocal asset to each other. 

 The principles of workmen 's compensation supply this human touch. 



It is estimated that in the United States industry kills between 

 thirty and fifty thousand persons each year, cripples five hundred 

 thousand and otherwise injures two millions. While this grim cata- 

 logue of dead and injured indicates the magnitude of our country's 

 industries, still, its unheeded consequences reflect a shadow that 

 gravely warns us of our neglect in caring for the injured and the 

 dependents of the dead. Whether this enormous human sacrifice is 

 due to the fault of the employer or the employe, or merely incidental 

 to industry, is immaterial, as it is now uniformly recognized and 

 admitted that compensation should be made therefor and charged 

 to production. 



The Illinois workmen's compensation act embodies the funda- 

 mental principles of workmen 's compensation laws and will, in a 

 great measure, fulfill its purpose. The problem presented by the 

 enactment of this law' is easily solved. The solution is: 



First — n^rapioyors accept the law and see that its provisions are carried 

 out in detail. 



Second — Employers unite in groups in accordance with their business 

 identity and adopt a plan of inter-insurance which will effectuate the full 

 purposes of the law and provide insurance for each other at cost. 



Third — Every member of each group uniformly add the cost of insur- 

 ance to the cost of production. 



Every workmen 's compensation enactment was designed and passed 

 with these ends in view. 



The chief purposes of the Illinois workmen 's compensation act are 

 to prevent injuries, promptly pay compensation and further the 

 interests of both the employer and the employe, which, in my judg- 

 ment, can best be accomplished through a state board or commission 

 ■with full power and authority to administer every feature of this 

 law. With the law properly administered, it will not only be accept- 

 able but desirable to the employer, the employe and the public. 

 There should also be an amendment requiring insurance companies 

 to make full report to this board or commission of all compensation 

 settlements made by such companies, the board or commission possess- 

 ing power to review all such settlements. 



Workmen's compensation laws have elsewhere resulted in the con- 

 servation of business stability, greater prosperity, improved standards 

 of living, fewer injuries, harmonious relations between employer and 

 employe, prevention of poverty resulting from injuries and a higher 

 average of society. All labor has been thereby elevated and per- 

 formed with a feeling of self-security, so that the employe puts forth 

 his best efforts for his employer. It is a notable fact that no state or 

 nation which has enacted workmen 's compensation laws has ever dis- 

 carded them, and what is true elsewhere will be found true in Illinois. 



There are but three authorized systems of insurance adaptable to 

 workmen's compensation laws: 



1. Inter-insurance. 



2. Compulsory or elective insurance under state administration. 



3. State insurance. 



Through each the end sought by compensation legislation is attained 

 at the actual expense of the hazard. 



Inter-insurance embodies all systems of self, reciprocal and mutual 

 insurance. By an inter-insurers' agreement the liability of each sub- 

 scriber is limited and any objectionable features that might follow 

 the original plan of mutual insurance eliminated. This insurance 

 equitably distributes the liability of the employer, effectuates the full 

 purposes of the law, insures the prompt payment of compensation 

 and secures every benefit to the employer. Inter-insurance is con- 

 ducted through an inter-insurers' exchange under the supervision of 

 an advisory committee, and, in Illinois, must be authorized by and 

 meet with the approval of the state insurance superintendent. 



Compulsory or elective insurance under state administration con- 

 sists of a system of insurance incorporated with the workmen's com- 

 pensation act, which system is founded upon the same plan and basic 

 principles as that of inter-insurance, but administered by a depart- 

 ment of the state, such as a board of awards, industrial insurance 

 commission, etc., instead of an inter-insurers' exchange. 



State insurance is a system of insurance provided at public expense, 

 supported by some established method of taxation, which is conducted 

 under state administration. 



The true purpose of compensation insurance is to pay compensa- 

 tion for every legitimate claim. All insurance companies organized 

 upon a profit-sharing basis, whereby the defeat of compensation inures 

 to the profit of the stockholders, or its methods bring about inhar- 

 monious relations between employer and employe, or disturbs plant 

 discipline, can find no quarters in the field of compensation insurance, 

 as the operation of such companies is contrary to the fundamental 

 principles of workmen's compensation laws. Hence, stock liability 

 and casualty insurance companies have been driven from this field 

 of insurance in foreign countries and have been condemned by the 

 official report of every compensation commission of our own country. 



Since the passage of the Illinois workmen's compensation act the 

 Illinois legislature has amended the general insurance laws of the 

 state for the purpose of providing a system of inter-insurance which 

 is adaptable to this act. Under this law all inter-insurers must be 

 authorized to engage in business by the insurance superintendent and 

 the business is conducted subject to the continuous supervision of the 

 Illinois Department of Insurance. 



Threatened Strike of New York Piano Makers 



The continued agitation on the part of the local division of the 

 Piano, Organ & Musical Instrument Makers' International Union with 

 the view of obtaining increased wages and other favorable concessions, 

 led to the calling of a meeting in that city on September 17. The re- 

 sult of the meeting was an ultimatum issued to the piano makers, giv- 

 ing them a period of ten days in which to meet the demands of the 

 workers for a fifteen per cent increase in wages. Failing in obtaining 

 this concession, it was decided that the piano makers will go on strike 

 which will result in the closing down of factories throughout New 

 York City and northern New Jersey. With a view of preparing for 

 the anticipated fight, a committee of one hundred men was appointed, 

 who, in case of a strike, are to personally make the rounds of the 

 piano factories and call out in person all employes of those plants, 

 and an effort will be made to interest non-union men as well as those 

 of the union in this struggle. 



It was brought out at the meeting that there has been no sub- 

 stantial raise in the wages of piano makers for ten years, which 

 condition forms the basis for the demand. The possibilities in the 

 piauo trade in New York and contingent territory are viewed seriously 

 by the local lumber fraternity inasmuch as such a condition would 

 work a decided hardship on it. 



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