154 
FOURTEENTH REPORT. 
ployed on their ships. These moneys become a relief fund in the United 
States Treasury for maintenance of sick and disabled seamen. 
Statutes making railroad companies liable for loss of property caused 
by tires set bv their locomotives clearly create liability without fault. 
Such statutes have been upheld by state courts and by the Supreme 
Court of the United States. 
The two decisions bring into conflict two fundamental principles of 
our constitutions. The one finds its justification in the protection of 
the personal rights in property, while the other involves the rights of 
the public, as well as personal welfare of the employed class. Obviously 
the issue concerns the definition and use of the police power, which 
cannot be discussed in this brief paper. This power is ample in all 
cases of dangerous industries. Whether it is sufficient to cover all 
kinds — fhe less dangerous as well — remains to be seen. The recent de- 
cision of the Wisconsin court makes use of this defense and brings the 
workmens compensation law of that state within the scope of its funda- 
mental law. Reliance in this matter must be placed in the wisdom, 
sense of justice and broad constitutional vision of our United States 
Supreme Court finally. If a sense of justice and general welfare demand 
a change from the present system of employer’s liability, surely under 
a rational constitution, ordained to establish justice and promote gen- 
eral welfare, it ought to be possible. Recent decisions and utterance of 
our highest court give evidence of this attitude. For instance, in the 
case Xoble State Bank vs. Haskell. 219 U. S. 104, the court said of the 
police power. “It extends to all the great public needs,” and “may be 
put forth in aid of what is sanctioned by usage or held by the prevailing 
morality or strong and predonderant opinion to be greatly and immedi- 
ately necessary to the public welfare.” 
Again, in Holden vs. Hardy, 169 U. S., 366, the same court declared 
“that the law must adapt itself to new conditions of society.” It may 
seem very reasonable that a conception of the police power which per- 
mits taxation of a banker to guarantee the debts of another banker ought 
to be comprehensive enough to include a workmen’s compensation act. 
These views — even though the court be not called upon to render a 
decision immediately — will shape the judicial opinions of our state 
jurors. 
Again, these laws are accused of interfering with the freedom of 
contract. Some states seek to avoid this charge by making the law 
optional for both employer and employe. In cases of compulsory law 
this provision is defended by resting it upon the police power. On 
general principles it is the right of every citizen to contract his labor 
or services. Yet, this is not an absolute right. There can be no doubt 
that the state can restrain some individuals from all contracts, and all 
individuals from some contracts. Some restriction upon contractional 
rights, of course, is very common. The basic test of whether this law 
comes within the scope of this defense is the reasonableness of the regu- 
lation. The fact that it is the means of attaining a social good as 
well as remedy for personal injustice the Washington court pronounces 
ample justification for upholding the law as valid. 
This same line of defense is applied to the charge that such a law is 
a species of class legislation, because it takes property from one group 
