152 
FOURTEENTH REPORT. 
to tax the employe means the creation of the necessity for advancing 
wages of workmen, while it is contemplated that the employer may 
reimburse himself from the consumer. It is argued by some proponents 
of compensation laws that each party — workman as well as employer 
—should bear such share of the expense as his responsibility for acci- 
dents demands. It is difficult to see the feasibility of such a plan. 
(b) Administration — Ohio, Montana, Massachusetts and Washing- 
ton require the funds to be paid to the state, which becomes responsible 
for compensating the workman. All other states arrange for the pay- 
ment to the workman directly by the employer, by rendering the em- 
ployer legally liable for such payment. 
Opinions are somewhat diverse with regard to this feature of the law. 
Eminent authorities pronounce state administration as the only effect- 
ive plan, since it is the only means whereby the employe can be assured 
of his compensation. Otherwise lie would be in jeopardy by possible 
insolvency of the employer. On the other hand this plan is weak, in 
that it absolves the employer of responsibility for the decrease of acci- 
dents. The consequent demands upon the state may make the pay- 
ments a burden to the state. 
The second plan, however, may bankrupt the employer, in which case 
the employe must suffer. It is proposed, in Michigan report, for in- 
stance, to permit the employer to protect himself by some kind of in- 
surance either mutual or employers’ liability insurance. This enhances 
the cost to the employer, but places on him the responsibility for reduc- 
ing accidents to a minimum. The problem is to escape the evils of the 
bankrupt employer or corporation on the one hand and the insurance 
company on the other. 
Administration of the law. The duties of administration are placed 
in charge of special boards or commissions created by the several acts. 
Wisconsin — Industrial Commission; Ohio — State Liability Board of 
Awards; Michigan— Industrial Accident Board (proposed); New Jer- 
sey — Employers’ Liability Commission. 
These bodies are constituted as tribunals in which all matters of dis- 
pute between employer and employe in regard to compensation shall be 
settled. This keeps such controversies from the courts and aims to 
secure uniformity of decision and administration as well as promptness 
and conclusiveness. As constitutional safeguards and a means of at- 
taining justice provisions for appeal from the decisions of this tribunal 
to regular courts are made, but these differ. In Wisconsin appeal may 
be taken if the board has exceeded its powers, is guilty of fraud or makes 
an award not supported by facts. In Ohio appeal to courts may be 
made if award has been denied. Michigan (proposed) findings of Board 
may be reviewed by State Supreme Court upon application within a fixed 
time limit by aggrieved party. 
The expense of administration is fixed upon the state, which can well 
afford to bear it, inasmuch as it is relieved by a considerable per cent — 
variously estimated as 25% or more — of its litigation. This may be 
defended, also, upofli the ground of the vital interest which the state 
possesses in the welfare of the workmen and their families. 
Relied ale <f Compensation. The states agree in having some compen- 
sation but do not agree in all the details of their schedules. For in- 
stance, in some laws the employer is required to furnish medical ser- 
