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ACCIDENT PREVENTION 
 AND RELIEF - 
 
 AN INVESTIGATION OF THE SUBJECT IN 
 
 EUROPE WITH SPECIAL ATTENTION 
 
 TO ENGLAND AND GERMANY 
 
 TOGETHER WITH 
 
 RECOMMENDATIONS FOR ACTION 
 
 IN THE 
 
 UNITED STATES OF AMERICA 
 
 BY 
 
 FERD. C. SCHWEDTMAN and JAMES A. EMERY 
 
 FOR THE 
 NATIONAL ASSOCIATION OF MANUFACTURERS 
 
 PUBUSHED FOR THE 
 
 NATIONAL ASSOCIATION OF MANUFACTURERS 
 OF THE UNITED STATES OF AMERICA 
 
 GENERAL OFFICES. 30 CHURCH STREET. NEW YORK 
 

 Copyright. 1911, 
 
 by 
 
 NATIONAL ASSOCIATION OF MANUFACTURERS 
 
 OF THE UNITED STATES OF AMERICA 
 
 
 » c 
 
 • •r 
 
 at* • 
 
NATIONAL ASSOCIATION OF MANUFACTURERS 
 OF THE UNITED STATES OF AMERICA 
 
 General Offices: 30 Church Street, New York 
 OFFICERS AND DIRECTORS 
 
 John Kirby^ Jr. (President), Dayton Manufacturing 
 
 Company, Dayton, Ohio. 
 F. H. Stillman (Treasurer), Watson-Stillman Company, 
 
 New York, N. Y. 
 
 J. G. Battelle^ Columbus Iron and Steel Company, 
 
 Columbus, Ohio. 
 C. S. Brantingham^ Emerson-Brantingham Company, 
 
 Rockford, 111. 
 H. S. Chamberlain, Citico Furnace Co., Chattanooga, 
 
 Tenn. 
 George T. Coppins, Walworth Manufacturing Company, 
 
 Boston, Mass. 
 Henry S. Hale, Hale & Kilburn Manufacturing Co., 
 
 Philadelphia, Pa. 
 C. C. Hanch, Nordyke & Marmon Co., Indianapolis, Ind. 
 
 Charles M. Jarvis, American Hardware Corporation, 
 
 New Britain, Conn. 
 Henry B. Joy, Packard Motor Car Co., Detroit, Mich. 
 
 vii 
 
 235517 
 
NATIONAL ASSOCIATION OF MANUFACTURERS 
 OF THE UNITED STATES OF AMERICA 
 
 General Offices: 30 Church Street, New York 
 OFFICERS AND DIRECTORS-Continued 
 
 H. E. Miles,, Racine- Sattley Company, Racine, Wis. 
 LuDWiG NissEN, Ludwig Nissen & Co., New York, N. Y. 
 William H. Parlin^ Parlin & Orendorff Co., Canton, 111. 
 David M. Parry^ Parry Auto Co., Indianapolis, Ind. 
 Enos Paullin^ Ferracute Machine Co., Bridgeton, N. J. 
 
 C. W. Post, Postum Cereal Co., Battle Creek, Mich. 
 Ferd. C. Schwedtman, St. Louis, Mo. 
 
 George D. Selby, Selby Shoe Company, Portsmouth, Ohio. 
 
 Giles H. Stilwell, H. H. Franklin Manufacturing Com- 
 pany, Syracuse, N. Y. 
 
 D. A. Tompkins, D. A. Tompkins Co., Charlotte, N. C. 
 
 J. P. Bird, General Manager, General Offices, New York, 
 N. Y. 
 
 George S. Boudinot, Secretary, General Offices, New 
 York, N. Y. 
 
 James A. Emery, General Counsel, Washington, D. C. 
 
 A. Parker Nevin, General Counsel, New York, N. Y. 
 
 viii 
 
COMMITTEE ON INDUSTRIAL INDEMNITY 
 INSURANCE 
 
 John Kirby^ Jr.^ (ex-offlcio), President A'^ational Asso- 
 ciation of Manufacturers, Dayton, Ohio. 
 
 Ferd. C. Schwedtman (Chairman), President Citizens' 
 Industrial Association, St. Louis, Mo. 
 
 D. A. Tompkins, President D. A. Tompkins Co., Charlotte, 
 N. C. 
 
 H. E. Miles, President Racine-Sattley Co., Racine, Wis. 
 
 Henry B. Joy, President Packard Motor Car Co., Detroit, 
 Mich. 
 
 Howell Cheney^ Cheney Brothers, South Manchester, 
 Conn. 
 
 G. A. Ranney, International Harvester Co., Chicago. 
 
 James A. Emery, AYashington, D. C, Counsel. 
 
 A. Parker Nevin^, New York City, CounseL 
 
 is 
 
ADVISORY BOARD OF COMMITTEE ON 
 INDUSTRIAL INDEMNITY INSURANCE 
 
 M. W. Alexander, General Electric Co., West Lynn, 
 Mass.; also Member Massachusetts State Commis- 
 sion on Compensation for Industrial Accidents. 
 
 B. T. Babbitt-Hyde, President B. T. Babbitt Co., New 
 
 York City. • 
 
 Geo. E. Bardeen, President Michigan Manufacturers' 
 
 Association, Otsego, Mich. 
 J. G. Battelle, President Columbus Iron and Steel Co., 
 
 Columbus, Ohio. 
 
 C. S. Brantingham, Secretary and Treasurer Emerson- 
 
 Brantingham Company, Rockford, 111. 
 0. P. Briggs, President National Founders' Association, 
 Minneapolis, Minn. 
 
 S. P. Bush, President and General Manager The Buck- 
 eye Steel Castings Co., Columbus, Ohio. 
 
 H. S. Chamberlain^ President Roane Iron Co. and Presi- 
 dent Citico Furnace Co., Chattanooga, Tenn. 
 
 Frank L. Dyer, General Manager Edison Phonograph 
 Works, Orange, N. J. 
 
 Frederick A. Geier, Cincinnati, O., President National 
 Machine Tool Builders' Association, Springfield, O.; 
 also President Cincinnati Milling Machine Co. 
 
 G. M. Gillette^ Member Minnesota Employers' Liability 
 Commission, St. Paul, !Minn. 
 
 J. M. Glenn, Director Russell Sage Foundation, New York 
 City. 
 
 G. H. Jantz, President American Hardware Manufac- 
 turers' Association, New York, N. Y.; also President 
 The American Wringer Co., New York City. 
 
ADVISORY BOARD OF COMMITTEE ON 
 INDUSTRIAL INDEMNITY INSURANCE-Contmued 
 
 Charles M. Jarvis, President The American Hardware 
 
 Corporation, Xew Britain, Conn. 
 M. W. Mix, President Dodge Mfg. Co., Mishawaka, Ind. 
 
 Laverne W. Noyes, President Illinois Manufacturers' As- 
 sociation, Chicago, 111. 
 
 Lewis W. Parker, President American Cotton Manufac- 
 turers' Association, Greenville, S. C. 
 
 David M. Parry, Ex- President National Association of 
 Manufacturers. 
 
 Col. Geo. Pope, Treasurer Pope Mfg. Co., Hartford, Conn. 
 
 C. W. Post, Chairman Postum Cereal Co., Battle Creek, 
 Mich. 
 
 I. D. Russell, Vice-President Russell & Erwin Mfg. Co., 
 New Britain, Conn. 
 
 J. H. Schwacke, Manager and Secretary Wm. Sellers Co., 
 Inc., Philadelphia, and President National Metal 
 Trades Association, Philadelphia, Pa. 
 
 George D. Selby, President and General Manager The 
 Selby Shoe Co., Portsmouth, Ohio. 
 
 E. C. Shaw, General Manager The B. F. Goodrich Co., 
 Akron, Ohio. 
 
 C. A. Smith, President C. A. Smith Lumber Company, 
 Minneapolis, Minn. 
 
 Henry R. Towne, President Yale & Towne Manufacturing 
 Co., New York City, and President Merchants Asso- 
 ciation of New York City. 
 
 Andrew T. Wilson, President Manufacturers' Association 
 of New York, Brooklyn, N. Y. 
 
Tore word 
 
 Employers' liability laws have perhaps been the Employers' 
 most fruitful source of worry, dissatisfaction and fric- Laws 
 tion to the employers and wage-workers of the United 
 States. It is freely admitted that looking at the subject 
 from the humane, economic and legal viewpoint our 
 present system can be changed, and ought to be changed. 
 
 Members of the National Association of Manufac- 
 turers have, during many years, manifested practical in- 
 terest in the prevention and relief of industrial accidents. 
 Some have established in their own plants private sys- 
 tems of relief and prevention which have attracted 
 national attention. 
 
 Impressed with the continually increasing importance 
 of this subject, its appeal to justice and humanity, and its 
 relation to widely proposed changes in the nature of em- 
 ployers' liability, a special committee was appointed to 
 investigate the whole question from the viewpoint of 
 the progressive employer. 
 
 After a thorough inquiry among the employers of the 
 United States, resulting in the receipt of 10,000 replies 
 to the Committee's interrogation sheet, a report was 
 placed before the annual meeting and resolutions were 
 adopted, of which the following is a part. ^^^^ 
 
XIV 
 
 FOREWORD 
 
 Resolutions 
 National 
 Association of 
 ManufacituTers 
 
 European 
 Investigation 
 
 ^* Whereas, the National Association of Manufacturers 
 occupies a leading position in all constructive work for 
 industrial betterment and particularly for harmonious 
 relations between American employers and wage-workers, 
 and 
 
 ** Whereas, the United States is less S-dvanced than 
 progressive European nations in respect to employers' 
 liability and industrial accident indemnity to the detri- 
 ment of the nation, its institutions and its people; 
 
 * ^ Be It Resolved, that the present system of determin- 
 ing employers' liability is unsatisfactory, wasteful, slow 
 in operation and antagonistic to harmonious relations be- 
 tween employers and wage-workers; that an equitable, 
 mutually contributory indemnity system, automatically 
 providing relief for victims of industrial accidents 
 and their dependents, is required to reduce waste, liti- 
 gation and friction, and -to meet the demands of an en- 
 lightened nation ; 
 
 '*Be It Further Resolved, that prevention of accidents 
 is of even greater importance than equitable compensa- 
 tion to injured workers. ' ' 
 
 To continue the investigations undertaken, the Asso- 
 ciation authorized Mr. Ferdinand C. Schwedtman, Chair- 
 man of the Committee, and Mr. James A. Emery, Special 
 Counsel, to visit Europe for the purpose of personally 
 observing the operation of the prevailing systems for the 
 compensation and prevention of accidents. Combining, 
 as these two men do, a thorough legal, engineering and 
 business training, together with many years' experience 
 in organization work, they seemed especially well quali- 
 fied for this difficult role. The information thus gained 
 
FOREWORD XV 
 
 is most gratifying to the officers of the National Asso-. 
 ciation of Manufacturers, and to the men who are acting 
 as members of the Advisory Board. 
 
 This volume presents the results of a four months' 
 investigation. It is not a broad treatise on social insur- 
 ance. It contains practically no data on sickness, in- 
 validity or old age pensions, but deals only with accident 
 prevention and accident relief for injured workers and 
 their dependents. Nor does this volume cover complete- 
 ly the details of the systems of the various European 
 countries. It was found that the systems of England 
 and Germany contain practically all the principles and 
 the experience which is required for the building up of a 
 sound system in the United States. Therefore, this progressive 
 
 Humane 
 
 volume describes, with much care, the methods of these viewpoint 
 two countries, and it throws such light upon various other 
 national systems as seems necessary to convey a rea- 
 sonably complete understanding of the whole subject. 
 
 A number of excellent books have been written of 
 late on the subject of this investigation, treating it in 
 its economic, legislative and sociological aspects. This 
 volume is such a combination of these viewpoints as 
 seems necessary to cover, in condensed form, the prac- 
 tical needs of the progressive, humane, American em- 
 ployer. 
 
 National Association of MANUFACTrRERS 
 OF THE United States of America. 
 
 J. KiRBY, Jr., President. 
 New York, January 1911. 
 
INTRODUCTION 
 
 Some years ago a man of much learning, who has de- present 
 voted practically his whole life to a study of social in- in [he 
 surance, and who is probably the greatest international 
 authority on the subject, was prevailed upon by his 
 friends to give to the world the fruits of his life's work 
 in book form. The result was, as might be expected, the 
 best work that has ever been written on the subject. 
 Five volumes, each containing about a thousand pages, 
 were given to the world in 1904, and an initial edition 
 of a thousand copies was printed. The work brought to 
 the author additional fame and international decorations, 
 but after seven years one-half of the original edition is 
 still unsold. A few years later this same author published 
 a pamphlet of about 50 pages, this being a short treatise 
 covering the rudiments and general principles of German 
 social insurance. Approximately a million copies were sold. 
 
 It is quite impossible for us to say all that must be 
 said to the employers of the United States in a pam- 
 phlet of 50 pages, but we have made an earnest attempt 
 to condense the information gathered into the smallest 
 possible space. Much of the most important material is 
 shown in charts and diagrams which can be absorbed by 
 the busy man at a glance. The book is written for the 
 
 xvii 
 
XVlll 
 
 INTRODUCTION 
 
 A Book 
 For the 
 Busy Man 
 
 Compilation 
 of Data 
 Carefully- 
 Made 
 
 busy man. Nevertheless, the student and the sociological 
 investigator can find much entirely new information in 
 it. For more detailed statements, minute descriptions 
 and historical information, we refer the reader to several 
 of the excellent works which have been written on the 
 subject from time to time. Among these Ve recommend 
 especially "Industrial Insurance in the United States,'^ 
 by Professor C. J. Henderson; and "Workingmen's In- 
 surance in Europe/' by Frankel and Dawson. Among 
 European works, Dr. Zacher's great work, "Die Arbeiter- 
 versicherung im Auslande," ranks foremost; "Deutsche 
 Arbeiterversicherung" is the name of a splendid recent 
 work published by the German Imperial Insurance Office 
 in honor of the twenty-fifth anniversary celebration of the 
 beginning of German Workers' Accident Compensation 
 Insurance; "Unfallverhuetung und Betriebsicherheit" 
 was published in honor of the same occasion by the In- 
 dustrial Employers' Associations of Germany, and "25 
 Jahre Unfallverhuetung" is the title of a most excellent 
 work prepared for the same occasion by the Society of 
 Accident Prevention Engineers. All of these works, and 
 many others, have been consulted liberally in the prepara- 
 tion of our report. 
 
 Anyone possessing the proper training, knowing where 
 to go, and being armed with the necessary credentials^ 
 can secure immense quantities of statistical and other 
 data in European countries. However, it requires a 
 great deal of care and labor to select from among tons 
 of literature the required facts and figures, to condense 
 them, and to translate them into charts and diagrams. 
 Nevertheless, this is the only way in which the man of 
 
INTRODUCTION xix 
 
 affairs can understand the systems of other nations, and 
 help build a scheme for the United States which combines 
 the best features of all countries. 
 
 We are gratified at being the happy instruments 
 through which the wisdom of European experts is trans- 
 mitted to our people. If we succeed (which we hope to 
 do) in furthering through this volume the great cause of 
 progressive, humane industrialism, greater harmony and 
 better understanding between American employer and 
 worker, and higher efficiency of the nation, the credit 
 belongs chiefly to the National Association of Manufac- 
 turers, which, under the leadership of its worthy Presi- 
 dent, Mr. John Kirby, Jr., and his associate officers, 
 
 has made this investigation possible. From among the Acknowl- 
 edgment of 
 splendid men who have assisted us in every possible way, valuable 
 
 Co-operation 
 
 often at great personal sacrifice, and always with un- 
 selfish devotion to the great cause, we take pleasure in 
 giving special credit to the following gentlemen: 
 
 Dr. Paul Kaufmann, President of the German Imperial 
 Insurance Department. 
 
 Dr. George Zacher, Director of the German Imperial 
 Statistical Department and one of the greatest in- 
 ternational experts on this subject. 
 
 Dr. Witowski, Director of the Imperial German Depart- 
 ment of Accident Insurance. 
 
 Dr. Klein and Prof. Hartmann, Members of the Imperial 
 Insurance Senate. 
 
 Dr. Spiecker, President of the Siemens & Halske Co., 
 Berlin, and Chairman of the Central Association 
 of German Employers' Organizations. 
 
XX INTRODUCTION 
 
 Prof. Dr. Alfred Manes, Secretary of the German Society 
 for Insurance Science, under whose supervision 
 much of the statistical and other information con- 
 tained in this volume was prepared. 
 
 Lord Stalbridge, Chairman the London and North Western 
 Railway Company. • 
 
 Lord Claude Hamilton, Chairman Great Eastern Rail- 
 way Company. 
 
 Sir Charles Scotter, Chairman London and South Western 
 Railway Company. 
 
 His Hon. Judge Alfred Henry Ruegg, K. C, The Middle 
 Temple, London. 
 
 Mr. S. R. Gladwell, Secretary Iron Trades Employers' 
 Insurance Association. 
 
 Mr. Malcolm Delevigne, Home Office, London. 
 
 Mr. C. Bermingham, Canadian Locomotive Works, Kings- 
 ton, Ontario. 
 
 Mr. J. P. Murray, Toronto, Canada. 
 
 We are also under obligations to the following gentle- 
 men who have assisted us in material ways in our investi- 
 gation : 
 
 Dr. Neisser, Chief Counsel League of German Employers' 
 Associations. 
 
 Judge von* Gastkowski of the Berlin Arbitration Courts. 
 
 H. Weinmann, Nuremberg, Chairman Quarry Owners' 
 Association. 
 
 H. Ritter von Maffei, Munich, Chairman South German 
 Iron and Steel Employers' Association. 
 
 Alfred Fues, Stuttgart, Chairman South German Metal 
 Employers' Association. 
 
INTRODUCTION Xxi 
 
 W. Jail 11, Stettin, Chairman I5rick Makers' Association. 
 
 O. Metzenthin, Brandenburg, Chairman North German 
 Textile Employers' Association. 
 
 Martin May, Frankfort, Chairman Leather Industry Em- 
 ployers' Association. 
 
 Arthur Faber, Stuttgart, Chairman Wood Workers' Em- 
 ployers' Association. 
 
 C. Metzmacher, Dortmund, Chairman Millers' Employers' 
 Association. 
 
 A. Lehmann, Hamburg, Chairman Building Trades Em- 
 ployers' Association. 
 
 Emil Jacob, Berlin, Chairman Warehouse Employers' As- 
 sociation. 
 
 J. Falkenhauer, Berlin, Chairman Team Owners' As- 
 sociation. 
 
 O. Bandke, Berlin, Chairman Excavating Employers' As- 
 sociation. 
 
 Karl Koegler, Vienna, Director Accident Insurance In- 
 stitute for lower Austria. 
 
 L. Jehle, Vienna, Chief Factory Inspector for Austria. 
 
 F. X. Karsch, Munich, Director Accident Prevention 
 Institute. 
 
 E. Ovigstat, Christiania, Director of Norwegian State 
 Insurance. 
 
 A. Gutknecht, Berne, Director Swiss Statistical Depart- 
 ment. 
 
 Ferd. C. Schwedtman, 
 
 James A. Emery. 
 
Our Sources of Information 
 
 Before introducing our readers to the details of our 
 work we want to place before them the story of our investi- 
 gation. Sound, sensible and practical results can be ob- 
 tained only by sound, sensible and practical methods. 
 Therefore, our methods must in a measure guarantee the 
 reliability of our conclusions. 
 
 We have personally visited England, Germany, France, countries 
 
 . Visited 
 
 Austria, Hungary, Belgium, Holland, Switzerland and 
 Italy. We have made a special investigation of the acci- 
 dent prevention institutions which are located in Amster- 
 dam, Paris, Brussels, Berlin, Munich, Vienna, Budapest, 
 Zurich and Milan. Most of our statements regarding con- 
 ditions in these places are based upon personal observation. 
 We have had exceptional opportunities for meeting the 
 leading men of the various countries — Government offi- 
 cials, jurists, industrialists, physicians, insurance experts 
 and workmen. 
 
 Fortune favored our investigation. The 25th anni- 
 versary celebration of the existence of the German Acci- 
 dent Insurance System took place during our presence in 
 Berlin. It brought together 1,300 of Germany's most im- 
 portant men— Government officials, employers and scien- 
 tists, all experts on one phase or another of accident pre- 
 vention, compensation and insurance. We were the only 
 
 xxlii 
 
XXIV ACCIDENT TREVENTION AND RELIEF 
 
 outsiders present at that celebration, and we are under 
 special obligations to the men who enabled us to include 
 in this volume much of the information prepared for that 
 occasion when it is not three months old in Germany. 
 International lu addition to tliis source of information, we secured 
 
 much new and important material by attemding the In- 
 ternational Conference on Social Insurance at the Hague ; 
 the International Law Conference in London; and the 
 International Conference on Labor Legislation in Lugano. 
 Each of these conferences dealt with important phases of 
 the subject of accident prevention, compensation and in- 
 surance. Our information regarding the countries 
 which we did not visit is based either upon the statements 
 made by representatives of tliese countries at these meet- 
 ings, or secured from the best known international experts. 
 Mr. Emery has given special attention to England and 
 Mr. Schwedtman to Germany, but each of these countries, 
 as well as the others named above, have been visited by 
 both investigators, and every statement, conclusion and 
 recommendation contained in this volume has the approval 
 of both. 
 
Table of Contents 
 
 Chapter I 
 
 PAGE 
 
 Outline and Underlying Principles of European Com- 
 pensation Legislation 3 
 
 Chapter II 
 Underlying Principles and General Working of the 
 German Scheme of Compensation for Occupa- 
 tional Accidents 25 
 
 Chapter III 
 Detail Description of Some of the Important Features 
 of the German System — Efficiency, Prompt and 
 Proper Medical Aid, the ''Doctor Question," the 
 Contributory Principle 45 
 
 Chapter IV 
 Obligatory Insurance an Important Factor in Acci- 
 dent Compensation — Various Forms of Insurance, 
 Mutual Insurance, Statistics, Scientific Inspec- 
 tion, Litigation 63 
 
 Chapter V 
 Hazardous Occupations — Comparative Hazard of In- 
 dustry and Farm ^^ 
 
 Chapter VI 
 Prevention of Accidents, Cause and Cure of Injuries, 
 European Safety Museums (Accident Prevention 
 Institutions) ^ 
 
 XXV 
 
XXVI TABLE OF CONTENTS 
 
 Chapter VII 
 
 PAGE 
 
 Cost of Accident Compensation Insurance in Ger- 
 many in Comparison with Similar Kates in the 
 United States 131 
 
 Chapter VIII • 
 
 Employers' Liability in Great Britain Prior to the 
 
 Compensation Acts 157 
 
 Chapter IX 
 The Introduction of the Compensation Principle by 
 the Acts of 1897 and 1900, and the Investigation 
 of the Operation of this Legislation by the De- 
 partmental Committee of 1904 169 
 
 Chapter X 
 The Final Extension of the Compensation Principle. 
 The Act of 1906, Outline of Its Provisions and 
 Examination of the Xature and Extent of Its 
 Liabilities 185 
 
 Chapter XI 
 British Compensation Statistics. The Xeglect to 
 Record the Operation of the Earlier Acts Incom- 
 pletely Remedied by Partial Information Re- 
 quired Concerning the Act of 1906 211 
 
 Chapter XII 
 Insurance under the Compensation Acts 227 
 
 Chapter XIII 
 Primal Defects of the British Legislation 249 
 
 Chapter XIV 
 Findings and Recommendations of the Committee 259 
 
TABLE OF CONTENTS XXVii 
 
 Appendix 
 Part One 
 
 Letters from Prominent German Authorities on the ^^^^ 
 Practical Working ^)f the German Social Insur- 
 ance System, with Special Reference to Accident 
 Insurance , . 273 
 
 Part Two 
 
 1. English Compensation Act of 1906 331 
 
 2. Contracting Out Scheme of Great Eastern 
 Railway Company, and Financial Operation 
 
 of Same for Year Ending June 30, 1910 353 
 
 3. Statements Made by Labor Union Officials and 
 Employers before Departmental Committee of 
 1904, Describing Effect of Act of 1897 upon 
 Elderly and Defective Workmen 369 
 
 4. Statement of Purpose and Operation of the 
 Iron Trade Employers' Insurance Association, 
 by the Secretary, Mr. S. R. Gladwell, London, 
 England 373 
 
 5. Statistical Tables of Industrial Accidents Dur- 
 ing Years 1904-1909, Inclusive. Prepared by 
 Department of Labor, Dominion of Canada . 377 
 
 Part Three 
 Voluntary Relief Associations in the United States — A 
 Descriptive Account of the Practical Working of 
 the Systems Adopted by the International Har- 
 vester Company, Cheney Brothers, and the Gen- 
 eral Electric Company 381 
 
LIST OF ILLUSTRATIONS 
 
 PAGE 
 
 Fig. 1. Frequency and Results of Accidents Frontispiece 
 
 Fig. 2. Injured Workers' Relief in Europe 12 
 
 Fig. 3. Compensation Through Compulsory Insurance 13 
 
 Fig. 4. The Contributory Principle in Europe 14 
 
 Fig. 5. Arbitration Courts, or Simplified Court Procedure for Com- 
 pensation Disputes 15 
 
 Fig. 6. Deaths Caused by Occupational Accidents 35 
 
 Fig. 7. Death Causes (Statistics 1905-07) 3$ 
 
 Fig. 8. Organization, Receipts, Expenditures and Funds (1908 ) 
 
 opposite 36 
 Fig. 9. Growth of Compensation for Accidents .. following Fig. 8, 
 
 opposite 36 
 Figs. 10 and 11. EflSciency of German Accident Compensation In- 
 surance (Statistics for 1908) opposite 47 
 
 Figs. 12 and 13. Efficiency of German Contributory Mutual Social 
 Insurance. Total Sum Contributed in Twenty-Five 
 
 Years for all Social Insurance opposite 49 
 
 Fig. 14. Duration of Industrial Injuries 52 
 
 Figs. 15 and 16. Responsibility for Occupational Accidents opposite 55 
 
 Figc. 17 and 18. The Contributory Principle opposite 58 
 
 Fig. 19. Frequency of Industrial Accidents According to Days and 
 
 Hours 68 
 
 Fig. 20. Frequency of Accidents According to Age and Sex— Indus- 
 trial Workers ^^ 
 
 Fig. 21. Frequency of Accidents According to Age and Sex— Agri- 
 cultural Workers '^ 
 
XXX List of iLLusxRAXioNy 
 
 PAGE 
 
 Fig. 22. Frequency of Accidents According to Days of the Week. 
 
 Comparison of Industrial and Agricultural Workers... 71 
 
 Fig. 23. Disputed Compensation Claims 78 
 
 Figs. 24 and 25. Comparative Hazard of Industry and Farm in 
 
 Germany opposite 83 
 
 Fig. 26. Permanent and Complete Disability Caused* by Occupa- 
 tional Accidents in 1908 84 
 
 Fig. 27. Partial Permanent Disability Caused by Occupational Ac- 
 cidents in 1908 84 
 
 Fig. 28. Temporary Disability Caused by Occupational Accidents 
 
 in 1908 85 
 
 Fig. 29. All Dangerous Parts of Apparatus and all Safety Devices 
 
 are Painted Red to Attract Workers' Special Attention. 88 
 
 Fig. 30. Accidents and Deaths Among Farm Workers Caused by 
 Falls from Ladders, Out of Haylofts, etc., During one 
 Year 88 
 
 Fig. 31. Dangerous Animals Must be Guarded 89 
 
 Fig. 32. Injuries and Deaths Among Farm Workers Caused by 
 
 Animal Bites and Kicks 89 
 
 Fig. 33. Farm Wagons Must be Equipped with Safety Appliances.. 90 
 Fig. 34. Proper Method of Loading Timber and Fastening Logs 
 During Hauling. Number of Accidents Caused While 
 Cutting and Hauling Timber During One Year 90 
 
 Fig. 35. Feed Cutting Machine Without and With Safety Guards, 
 Including Number of Fatal and Non-fatal Accidents 
 Caused by Feed Cutting Machines in One Year 91 
 
 Fig. 36. Threshing Machine Without and With Safety Devices, and 
 Number of Casualties for Which Threshing Machines 
 are Responsible in One Year 91 
 
 Fig. 37. Farmers' Horsepower Mills Must be Properly Safeguarded. 
 Number of Accidents Due to This Source of Danger in 
 One Year 92 
 
I ACCIDENT PREVENTION AND RELIEF XXXi 
 
 Pig. 38. Farmers' Power Transmission Machinery, Without an/^^^ 
 With Safety Covering 92 
 
 Fig. 39. Farmers' Power Transmission Machinery, Without and 
 With Safety Covering. Number of Accidents, Including 
 Deaths from this Cause in One Year 92 
 
 Fig. 40. Farmers' Cider Mill, Without and With Safety Covering 
 
 for Gears 93 
 
 Fig. 41. Cause and Frequency of Accidents, Analyzed According to 
 Occupations, 1908. Agricultural and Horticultural Work- 
 ers' Accident Insurance opposite 94 
 
 Fig. 42. Cause and Frequency of Accidents, Analyzed According 
 to Occupations. Accident Insurance for All Trades, 
 Building Industries and Seamen. Back of Fig. 41, opposite 94 
 
 Fig. 43. Accident Prevention, Official Expenditures During the Past 
 Twenty-five Years for Inspection and Management, and 
 Premiums Awarded for Meritorious Life-Saving Devices, 
 Etc opposite 101 
 
 Fig. 44. Twenty-one Years' Accident Prevention History for All 
 
 German Industries Combined 103 
 
 Fig. 45. Twenty-one Years' Accident Prevention History in the 
 
 Chemical Industry 104 
 
 Fig. 46. Twenty-one Years' Accident Prevention History in the 
 
 Mining Industry 105 
 
 Fig. 47. Twenty-one Years' Accident Prevention History in the 
 
 Iron and Steel Industry 106 
 
 Fig. 48. Twenty-one Years' Accident Prevention History in the 
 
 Glass, Pottery and Brick Industries 107 
 
 Fig. 49. Results of Twenty-one Years' Accident Prevention for all 
 
 Industries Combined ^^^ 
 
 Fig. 50. Results of Twenty-one Years' Accident Prevention for the 
 
 108 
 Chemical Industry 
 
xxxii List of Illustrations- « 
 
 PAGE 
 
 Fig. 51. Results of Twenty-one Years' Accident Prevention for the 
 
 Glass, Pottery and Brick Industries 10» 
 
 Fig. 52. Results of Twenty-one Years' Accident Prevention for the 
 
 Iron and Steel Industries 109 
 
 Fig. 53. Results of Twenty-one Years' Accident Prevention for the 
 
 Mining Industry , 110 
 
 Fig. 54. Results of Twenty Years' Accident Prevention (Mine Em- 
 ployers' Association) Ill 
 
 ,Fig. 55. Old Type Square Cutter Head for Wood Planer 113 
 
 Fig. 56. Injuries to Workmeng' Hands Caused by Square Cutter 
 
 Head 113 
 
 Fig. 57. New Type Round Cutter Head for Wood Planer 11.5 
 
 Fig. 58. Injuries to Workmens' Hands Caused by Round Cutter 
 
 Head , 113 
 
 Fig. 59. Safety Appliance Attached to Wood Groover 114 
 
 Fig. 60. Circular Saw and Band Saw for Wood-Working Shop Pro- 
 vided With Safety Device for the Protection of Work- 
 ers' Limbs 114 
 
 Fig. 61. Special Safety Handle for Planing Short Pieces of Wood 
 
 Without Danger to Operator's Hands 115 
 
 Fig. 62. Emerywheels with Protecting Safety Guards and Wood 
 Planer with Device Which Protects the Worker's Hands 
 
 from Contact with Gears and Revolving Knives 115 
 
 Fig. 63. Woodworking Machine Without and With Safety Device.. 115 
 
 Fig. 64. Safety Feet for Ladders , 116 
 
 Fig. 65. Ladders with Safety Feet Attached 117 
 
 Fig. 66. Safety Covering Used Throughout Berlin on Openings in 
 Streets and Sidewalks, As a Means of Protection Against 
 Slipping 118 
 
 Fig. 67. Interior View of Old Vienna Accident Prevention Institute 119 
 
 Fig. 68. Another Interior View of Old Vienna Accident Prevention 
 
 Institute 119 
 
ACCIDENT PREVENTION AND RELIEF XXXiii 
 
 PAGE 
 
 Fig. 69. Exterior View of Berlin Safety Museum 12o 
 
 Fig. 70. Interior View of Berlin Safety Museum 121 
 
 Fig. 71. Exterior View of Munich Accident Prevention Institution. 122 
 Fig. 72. Interior View of Munich Accident Prevention Institution. 122 
 Fig. 73. Safety Method of Loading and Unloading Round Timber.. 123 
 Fig. 74. Loading and Unloading Scrap Iron by Means of Electro- 
 magnets ; , 124 
 
 Fig. 75. Safe Handling of Steel Plates and Beams 125 
 
 Fig. 76. Safety Device for Handling White Hot Metal in Rolling 
 
 Mills 126 
 
 Fig. 77. Asbestos Protection for Workers Handling Crucible of 
 
 Molten Metal 127 
 
 Fig. 78. Photograph of a Gruesome Exhibit at the Vienna Museum, 
 Showing Decayed Jaw Bones, the Result of Phosphorus 
 Poisoning 128 
 
 Fig. 79. German Insurance Rates for 1909. (Building Trades In- 
 dustry ) 133 
 
 Fig. 80. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Teaming Industry 134 
 
 Fig. 81. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Flour Mill Industry 134 
 
 Fig. 82. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for River and Lake Navigation... 135 
 
 Fig. 83. Twenty-two Years' German History of Injured Workers 
 and Insurance Rates for the Brewing and Malting In- 
 dustry ^^^ 
 
 Fig. 84. Twenty-two Years' German History of Injured Workers 
 and Insurance Rates for the Agricultural and Horticul- 
 
 1 "id 
 
 tural Industry 
 
 Fig. 85. Twenty^two Years' German History of Injured Workers 
 
 and Insurance Rates for the Tobacco Industry 136 
 
xxxiv List of Illustrations 
 
 PAGE 
 
 Fig. 86. Twenty-two Years' German History of Injured Workers 
 and Insurance Rates for the Dairy, Distilling, and 
 
 Starch Industries 136 
 
 Pig. 87. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Clothing Industry 137 
 
 Pig. 88. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Quarry Industry 137 
 
 Fig. 89. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Textile Industry 137 
 
 Pig. 90. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Sugar Industry 138 
 
 Fig. 91. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Printing Industry 138 
 
 Fig. 92. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Building Trades Industry. 138 
 Fig. 93. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates in the Manufacture of Paper 
 
 Articles 139 
 
 Pig. 94. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Paper Making Industry... 139 
 Fig. 95. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Pottery Industry 139 
 
 Pig. 96. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Sea Navigation and Fisher- 
 ies Industries 140 
 
 Pig. 97. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates in Miscellaneous Metal Industries. 140 
 Pig. 98. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Excavating and Tunneling 
 
 Industry 140 
 
 Pig. 99. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Glass industry 141 
 
ACCIDENT PREVENTION AND RELIEF XXXV 
 
 Fig. 100. Twenty-two Years' German History of Injured Workers^^^^ 
 and Insurance Rates for the Woodworking Industry.... 141 
 
 Fig. 101. Twenty-two Years' German History of Injured Workers 
 and Insurance Rates for the Mechanical and Electrical 
 Industries ^ . ^ 
 
 Fig. 102. Twenty-two Years' German History of Injured Workers 
 and Insurance Rates for State Railways, Mail and Tele- 
 graph Service 242 
 
 Fig. 103. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Food and Canning Industry 142 
 
 Fig. 104. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Chemical Industry 142 
 
 Fig. 105. Twenty-two Years' German History of Injured Workers 
 and Insurance Rates for the Musical Instrument In- 
 dustry 143 
 
 Fig. 106. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Mining Industry 143 
 
 Fig. 107. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Warehouse Industry 143 
 
 Fig. 108. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for Street and Interurban Railways 144 
 Fig. 109. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Brick Making Industry 144 
 
 Fig. 110. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Leather Industry 144 
 
 Fig. 111. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for Private Railways 145 
 
 Fig. 112. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for the Iron and Steel Industry 145 
 
 Fig. 113. Twenty-two Years' German History of Injured Workers 
 
 and Insurance Rates for Gas and Waterworks 145 
 
 Pig. 114. Insurance Cost in Germany for all Industries Combined.. 146 
 
xxxvi List of Illustrations 
 
 PAGE 
 
 Fig. 115. Insurance Rates in New York Before and After the En- 
 actment of Law of 1910 151 
 
 Fig. 116. Comparison of Compensation Insurance Rates in the 
 
 State of New York and Germany 152 
 
 Fig. 117. Insurance Rates in Ohio Before and After Enactment of 
 
 Law of 1910 , 153 
 
 Fig. 118. International Harvester Company's McCormick Works.. 384 
 Fig. 119. Correct Method of Catching Stream of Melted Iron 
 
 from Foundry Cupola 390 
 
 Fig. 120. Wrong Method of Catching Stream of Melted Iron in 
 
 Foundry 391 
 
 Fig. 121. Right and Wrong Kind of Clothing and Shoes for Foun- 
 
 drymen to Wear at Work 392 
 
 Fig. 122. Illustration Calling Attention to the Dangers that May 
 
 Result from Careless Loading of Trucks 393 
 
 Fig. 123. Showing Dangers Resulting from the Non-Use of Glasses 
 
 While Working at an Emery Grinder 394 
 
 Fig. 124. Illustration Showing Guards for Wood Shaper Improperly 
 
 Used 395 
 
 Fig. 125. Illustration showing Guards for Wood Shaper Used Prop- 
 erly 396 
 
 Fig. 126. Showing Circular Saw Guard Misused 397 
 
 Fig. 127. Circular Saw Guard in Use 397 
 
 Fig. 128. Removing Twine from Shaft of Machine in Spinning by 
 
 Stopping Machine Only Safe Method 398 
 
 Fig. 129. Removing Twine from Shaft of Machine in Spinning 
 
 While Machine is in Motion, A Dangerous Method 398 
 
 Fig. 130. View of Plant of Cheney Brothers, South Manchester, 
 
 Conn 400 
 
 Fig. 131. Works of the General Electric Company at Lynn, Mass. . . 414 
 
CHAPTER ONE 
 
 Outline and Underlying Principles of European 
 Compensation Legislation 
 
ACCIDENT PREVENTION 
 AND RELIEF 
 
 CHAPTER I 
 
 Outline and Underlying Principles of European 
 Compensation Legislation 
 
 While each nation possesses problems peculiar to it- Task 
 self, some at least are shared by all the tribes of men. of°Bes^ 
 Most men are engaged in satisfying the wants of others 
 as a means of providing for their own, and injury in the 
 course of their employment is a distressing but frequently 
 recurring feature of every-day life. To lessen the number 
 and degree of such accidents, to anticipate the economic 
 loss they occasion, as well as to provide equitable rem- 
 edies for incapacitated victims, presents a task worthy 
 of the best thought of our time. 
 
 We must acknowledge that the Old World gives this 
 serious matter much more attention than the New, and 
 we are told that its action has been stimulated not merely 
 by consideration for the individual, but because the bit- 
 terness and waste accompanying accident litigation are 
 perceived to be against the public welfare, whilst the pre- 
 servation of industrial strength insures the maintenance 
 
Action a 
 Necessity 
 but Must 
 be Sound 
 
 A iil^'l Vi\ : '^ ApCtoSlNT PREVENTION AND RELIEF 
 
 of national efficiency. In our own country, interest in 
 every phase of this question is rapidly increasing in vol- 
 ume and extent, and we are already being urged through 
 powerful influences to a variety of state and national ac- 
 tion, much of which would hurry us along new paths and 
 far from ancient landmarks. But action, however neces- 
 sary, must be sound rather than sudden. Sweeping re- 
 form in procedure, perhaps radical change in existing 
 liability, may be required from broad considerations of 
 justice and expediency, but the livelihood of a nation is 
 no play-field for impulsive experimentalists. Employer 
 and employe are partners in success or failure; whether 
 they like it or not their general fortunes are inseparably 
 associated. You cannot burden the one w^ithout taxing 
 the other, and neither class can be permanently benefited 
 at the expense of the other. 
 
 Fortunately for us, we can spread before our view the 
 variety of means by which our European neighbors have 
 undertaken during a considerable period of time to pro- 
 vide against the results of injury in employment and to 
 control its cause. It is true that their governmental 
 view^point is often unlike our own, but examination of 
 their methods may reveal that many are unfamiliar to 
 our political system rather than inconsistent with it. 
 Their long experience presents much to those seeking in- 
 struction from the success and failure of others, but to 
 take profit from the efforts of others, we must understand 
 not merely ivhat they do, but why they do it. Underlying 
 what we term the compensation legislation of Europe is 
 the philosophy offered to explain and vindicate it. 
 
EUROPEAN COMPENSATION LEGISLATION 5 
 
 The starting point of European principle is the stop- Basis of 
 
 . , /. , „ , . ,. Employers' 
 
 pmg point of our system of employers' liability. With Liability 
 us, established fault is the sole basis of recovery in an 
 action for personal injury. An American workman is en- 
 titled to compensation for injury suffered in employment 
 only when he can show that he was free from blame and 
 that his hurt resulted from the failure of his employer or 
 his representative to perform some legal duty. Our courts 
 are daily engaged in ascertaining, from the circumstances 
 presented to their notice, what was the degree of duty to 
 which the employer was obligated and the amount of risk 
 which the workman undertook as an incident of his em- 
 ployment. It may and often does happen that the evi- 
 dence shows no negligence upon the part of either plain- 
 tiff or defendant, but that the injury arose from a hazard 
 of the emplo3'ment for which there is no personal re- 
 sponsibility. How often this occurs in the industries of 
 a given nation will be later considered, but to illustrate 
 the philosophy we are following, some recent English 
 figures will suffice. 
 
 The Report of the Chief Factory Inspector of Great Responsibility 
 
 ^ *^ ^ for . Accidents 
 
 Britain for the year 1909 relates incidentally that a care- 
 ful analysis was made of 1644 accidents especially in- 
 vestigated during a period of twelve months: ''373 were 
 shown to be attributable to the absence or insufficiency of 
 fencing; 552 were due to the fault of the injured person; 
 676 were unpreventable, and 43 were marked as doubt- 
 ful." (a) The recognition of such conditions gave the orig- 
 inating impulse to a quarter of a century of European 
 social legislation. 
 
 (a) Cd. 5191, page XXXIV. 
 
6 ACCIDENT PREVENTION AND RELIEF 
 
 It asks us to realize that the extended use of tools, 
 mechanical implements and appliances in all employ- 
 ments creates an element of inherent hazard unknown to 
 the simpler working conditions of the past, unavoidable 
 by human precaution, continually increasing and daily 
 entering into occupations to which its presence was for- 
 merly a stranger. It is presumed that this risk, inherent 
 in the way the world does its work, is not likely to de- 
 crease. It is pointed out that our necessities, comforts, 
 the whole complicated structure of material civilization, 
 rest upon the continued operation and extended applica- 
 tion of many potentially dangerous forces and instrumen- 
 talities, which man has brought into his service, and upon 
 the continued use of which he is dependent. 
 Principle of Under these conditions the worker is exposed to and 
 
 Trade 
 
 Hazard rcccivcs iujurics arising from neither the fault of him- 
 
 self, his fellows nor his superiors, but where the recovery 
 rests upon proof of negligence, he must bear the economic 
 burden resulting from his disability, or leave it upon the 
 shoulders of his dependents in case of his death. From 
 these considerations, it follows that there are unavoid- 
 able as well as avoidable accidents and the former ought 
 to be a burden upon the employment in which they occur 
 instead of the individual to whom they occur. 
 
 If we turn to the Germans, who first gave practical 
 application to this principle, we find that, as in other 
 countries which later adopted it, it was a primary but 
 not exclusive consideration in the formulation of a com- 
 pensatory scheme. Other conditions, not unlike those 
 arousing our present attention, were contributing factors 
 finding later expression as an integral part of the new 
 system. 
 
EUROPEAN COMPENSATION LEGISLATION 7 
 
 Dr. Boediker, first president of the German Imperial 
 Insurance Office, relates that when the first Accident In- 
 surance Bill was laid before the Reichstag in 1881, it was 
 accompanied by an explanation and argument in support 
 of its policy, which, referring to the unsatisfactory opera- 
 tion of the existing Employers' Liability Law of 1871, a 
 measure resting upon negligence; said: 
 
 ^^This condition is unbearable. The workman is conditiens 
 insufficiently protected by the present law against Germany 
 
 1 881 
 
 the dangers of his calling, whilst onerous burdens 
 are placed upon the employer and the relations be- 
 tween emi)loyer and employe grow worse instead of 
 better. A condition has been created, the removal of 
 Avhich is desirable in the interest of both classes of 
 the industrial population." 
 Recognizing the principle of trade hazards, but un- 
 doubtedly influenced by circumstances of social discon- 
 tent, Bismarck proposed the poli<3ies which have ripened 
 in the vast German system of social insurance. The 
 changes which it wrought in the fundamental principles 
 of employers' liability at the civil law were adopted within 
 twenty years by practically all the states of Conti- 
 nental Europe. But the spirit and practical methods 
 of applying the new German philosophy were not as 
 closely imitated. The essential difeerences which can 
 arise in the application of a basic principle are strik- 
 ingly illustrated in the contrast . presented by German 
 and English legislation. 
 
 The German system, we are told in a special state- 
 ment made by Dr. Neisser, chief counsel for the League 
 
Principles 
 of the 
 German 
 System 
 
 8 ACCIDENT PREVENTION AND RELIEF 
 
 of German Employers^ Accident Insurance Associations, 
 rests upon four principles : 
 
 1. It proceeds from the assumption that he who 
 creates an enterprise, that peculiar structure of human 
 beings, things and forces, and induces men to labor 
 amongst arms of steel, moving at high speed, establishes 
 a source of danger and becomes responsible for damage 
 resulting from this source. Under this theory employers^ 
 fault need not he proven. The fact that injury has been 
 caused establishes claim for compensation. 
 
 2. Convinced that in many cases the resources of 
 the individual employer would not prove equal to the 
 enormously increased liability, and that therefore the ex- 
 istence of the employer as well as compensation of the 
 injured worker would be jeopardized, individual respon- 
 sibility is eliminated and in its place is put the collective 
 responsibility of the industry. 
 
 3. To carry out this idea, large industries, and, later 
 on, commerce and crafts, or small industries, were or- 
 ganized into employers' associations grouped according 
 to callings. Thus legally incorporated, self-governing 
 bodies were formed and each and every employer was 
 compelled by law to join. The miller must join the Mil- 
 lers' Employers' Association ; the teamster, the Employers^ 
 Teaming Association, etc. Upon these organizations was 
 placed the responsibility of carrying and administering 
 the accident compensation system, and to this end they 
 were invested w^ith far-reaching legal powers for enforc- 
 ing their rules, for raising money, etc. 
 
EUROPEAN COMPENSATION LEGISLATION 9 
 
 4. Accident prevention being of greater importance 
 and larger social value than compensation, was also 
 placed in the hands of these employers' associations, with 
 the necessary legal authority for enforcement. 
 
 The first two principles, w^e observe, define liability, 
 the third is one of administration, whilst the last links 
 the compensation and prevention of accident. 
 
 We have, unfortunately, no such compact authoritative principles and 
 
 Policy of 
 
 statement of the elements of English legislation, nor can English 
 
 Legislation 
 
 they be so readily epitomized, but w^e may gather the 
 principle and policy from equally authoritative sources. 
 Mr. Asquith, the present Prime Minister, defined the 
 principle, when outlining his proposals for the Act of 
 1906 : ^'Where a person, on his own responsibility and for 
 his own profit, sets in motion agencies Avhich create risk 
 for others, he should be civilly responsible for the conse- 
 quences of what he does.'' 
 
 Mr. Joseph Chamberlain, discussing the Act of 1897, 
 declared the policy on the floor of Parliament in the de- 
 bate which preceded its adoption: 
 
 ^This new principle the government would only 
 be justified in applying by some great public human 
 interest. Now, that great public human interest 
 arose in the case of what he might call serious acci- 
 dents. The sufferers from those accidents were the 
 wounded soldiers of industry whom tliey had in 
 their minds, and about whom so much was said in 
 discussing this subject— people who were seriously, 
 if not permanently, injured, and prevented, at all 
 events for a considerable period, from following 
 
10 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Purpose of 
 English 
 Act of 1897 
 
 Comparison 
 of the 
 German and 
 English 
 Viewpoints 
 
 their ordinary employment. There would be no 
 ground for legislative interference if they could 
 believe that every accident which occurred was an 
 accident whose effects would not last longer than 
 three weeks. Sucli accidents as those were accidents 
 for which the workman might very jfroperly be ex- 
 pected to make provision himself." (a) 
 This statement of the purpose of the British legisla- 
 tion is confirmed by the Departmental Committee ap- 
 pointed in 1904 to investigate the operation of the Act of 
 1897. It said: 
 
 "That the employer should be compelled to make 
 such provision as will, under ordinary circum- 
 stances, be sufficient for the actual necessities 
 resulting from the accident. ♦ * * xhe Act is 
 aimed at affording substantial relief from the 
 consequences of misfortune, but not complete 
 indemnity." * * *(^) 
 
 "We apprehend that the principle of the Act of 
 1897 is to provide such a degree of relief to de- 
 pendents in the case of fatal accidents as shall af- 
 ford reas(mable assistance for maintenance." (^) 
 A brief comparison of the German and English view- 
 points shows the legislators of both countries to be alike 
 in recognizing the principle of trade risk. This Great 
 Britain meets by extending personal liability to assure 
 limited compensation for injury. Germany eliminates 
 
 (a) Hansard, Vol. 49, 1316 (1897). 
 
 (b) Report Departmental Committee, 1904, Ca. 2208, page 13. 
 (c). Report Departmental Committee, 1904, Ca. 2208, page 37. 
 
EUROPEAN COMPENSATION LEGISLATION 11 
 
 personal liabilit}-, substituting compulsory mutual insur- 
 ance against accident, administered by its contributors. 
 Germany unites attack upon the cause, with defense 
 against the effect of injury ; the British policy bears no re- 
 lation to accident prevention. The German administrative 
 principle aims at removing the element of personal an- 
 tagonism between employer and employe in controversies 
 arising from personal injury; the British disregards it. 
 The British legislature intervenes to relieve dependency; 
 the German to confer a right to assistance in return for 
 contribution. By each, accident is regarded as wholly at- 
 tributable to trade risk and the personal factor is 
 eliminated. 
 
 To make every employer a limited insurer in law is 
 the legal basis of all so-called compensatory legislation. 
 Not every country, however, pursues the final logic of its 
 own law. Some merely extend the personal liability of 
 the employer, others eliminate it, creating, by compulsory 
 contribution, a fund from which compensation is paid. 
 With a few striking exceptions, all countries, but not with 
 equal success, strive to lessen the causes as well as the 
 hardships of injury. 
 
 An extreme employers' liability law is still in force Employers* 
 
 LmDility 
 
 in Switzerland, proposed compensatory legislation having ^aw^^n^^^ 
 been defeated by an initiative and referendum vote. An 
 elaborate plan of accident insurance providing for con- 
 tribution from employer, employe and the state, has, 
 however, been formulated and will in all likelihood be en- 
 acted within a year. 
 
12 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 fo 
 
 
 
 
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 B-)%\ 
 
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 J 
 
 
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 / 1l-A$ -.9 ^ 
 
 
 
 
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 €^ 
 
 
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 ifT^ 
 
 S^rfj^^C 
 
 ^ 
 
 
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 Q 
 
 
 f^^ ii 
 
 W 
 
 
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 P 
 
 
 ^o »n ; 
 
EUROPEAN COMPENSATION LEGISLATION 13 
 
 A majority of European countries have found a com- 
 pensation act of little use unless obligatory insurance 
 guarantees the compensation awards to the injured work- 
 man witliout over-burdening the small employer. 
 
 FIGURE 3 
 COMPENSATION THROUGH CQMPULSORY INSURANCE 
 
 Compulsory insurance for all workers (red) in Austria, Finland, Germany, 
 Holland, Hungary, Italy, Luxemburg, Norway. 
 
 Compulsory insurance for part of wage workers (dotted) in Denmark, 
 France. 
 
 Optional insurance (white) — Belgium, England, Spain, Sweden. 
 
 In Germany, Austria and Luxemburg the employer is insurance 
 
 Associations 
 
 required, as a condition of doing business, to belong to in European 
 
 Countries 
 
 insurance associations, organized by crafts or sections, or 
 administered by the employers themselves, subject to 
 state supervision. In the Netherlands, Italy, Sweden, 
 Finland, Hungary and Norw^ay the state itself maintains 
 
14 ACCIDENT PREVENTION AND RELIEF 
 
 an insurance institution, of which the employer may avail 
 himself, except in Hungary and Norway, where he has 
 no choice, it being the only form of insurance permitted. 
 The state guarantees payments of compensation in 
 France, Germany, Italy, Hungary, the Netherlands and 
 Norway. • 
 
 Contributory The coutributory principle plays an important part in 
 
 E^lopTiniLws fclie compensation laws of Europe, as is evident from the 
 following figure. 
 
 FIGURE 4 
 THE CONTRIBUTORY PRINCIPLE IN EUROPE 
 
 Employers pay whole compensation (red) in Belgium, England, Finland, 
 Holland, Hungary, Italy, Spain. 
 
 Workmen or state contribute (white) in Austria, Denmark, France, 
 Germany, Luxemburg, Norway, Sweden. 
 
EUROPEAN COMPENSATION LEGISLATION 15 
 
 The extent to which European countries have adopted 
 simplified court procedure or special arbitration courts 
 for settlement of compensation disputes is shown in the 
 
 next figure. 
 
 FIGURE 5 
 
 ARBITRATION COURTS, OR SIMPLIFIED COURT PROCE- 
 DURE FOR COMPENSATION DISPUTES 
 
 Countries with simplified court procedure for settlement of disputes (red), 
 Austria, Belgium, Denmark, England France, Germany, Holland, Hungary. 
 Italy, Norway. 
 
 Countries with regular court procedure (white), Finland, Spain, Sweden. 
 
 Germany established its system in 1884, Norway in Dates^of^_ 
 1894, Finland in 1895, Great Britain in 1897, France and ^ent^ot^ 
 Italy in 1898, Spain in 1900, Holland in 1901, Belgium 
 in 1903, and Russia in 1904. Between 1901 and 1905 
 New Zealand, Australia, and the Canadian Provinces of 
 British Columbia and Alberta followed the lead of the 
 Mother Country, Quebec adopting the substantial provi- 
 
16 
 
 ACCIDENT PREVENTION AND BELIEF 
 
 Comparison 
 of European 
 Compensation 
 Legislation 
 
 sions of the French law in 1909. ^Yhile all this legisla- 
 tion presents underlying identities, it is worked out with 
 a variety of dissimilarity in secondary principles and 
 methods expressing national traditions and character- 
 istics, and differing views of public obligation. These 
 differences of degree and kind in the creajion of liability 
 and administrative detail while interesting are not of 
 sufficient importance to warrant detailed attention. They 
 were strikingly suggested in the brief analysis made by 
 Sir John Gray Hill at the London Conference of the In- 
 ternational Law Association in August 1910. He pointed 
 out that the acts of different countries vary from one 
 another in the following way : 
 
 1. Whether the employer is personally liable to the 
 employe, or only bound to provide or contribute to the 
 cost of an insurance fund out of which payment is to be 
 made. 
 
 2. Whether, when the employer is liable, his liability 
 is for accidents however caused, or only for those due 
 to negligence of the Superintendent appointed by him 
 or by his authority, or to the defective state of the ap- 
 pliances used in the work. 
 
 3. The occupations to which the enactments relate. 
 
 4. The maximum amount of annual earnings which 
 exclude an employe from the benefit of the Act. 
 
 5. The acts of the employe in relation to the accident 
 which disentitle him to establish his claim. 
 
 6. The extent of the claim of the employe or his de- 
 pendents. In this are included — 
 
 (a) In case of temporary disablement, the right to 
 medical treatment, nursing, etc., and the duty 
 
EUROPEAN COMPENSATION LEGISLATION 17 
 
 to submit to the same; the period after the 
 accident at which the first payment having 
 reference to wages becomes due; the proportion 
 which the payment bears to wages; the mini- 
 mum and maximum limits both as to the 
 amount and as to the period for which they 
 are to be continued ; and special provisions 
 as to persons under age. 
 (b) In case of permanent disablement, whether 
 partial or total, the enactments differ as to the 
 like questions, and also as to whether a certain 
 value or scale of compensation should be ap- 
 plied to the loss of a particular part of the 
 body of the employe, such as a leg, an arm, or 
 an eye. 
 
 7. In case of death — variations 
 
 ,._-,,, i, o 1 ^" European 
 
 (a) The allowance for funeral expenses. Laws in com- 
 
 (b) The rights of the dependents — what relations Death 
 are to be considered as such, and in what order, 
 
 and whether illegitimate relations are to be 
 included, and to what extent — the mode of ar- 
 riving at the amount payable, whether by lump 
 sum or by annuity — the period for which the 
 latter is to last and the minimum and maximum 
 limits as to amount. 
 
 8. How the enactment is to be administered, e. g. — 
 
 (a) How far government or other officials acting 
 independently of the employer and employes are 
 to intervene in the administration. 
 
 (b) Whether questions as to the interpretation of 
 the enactments, and the rights of the parties 
 
18 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Recognition 
 of the 
 Compensa- 
 tory Principle 
 in the United 
 States 
 
 under them are to be decided by a special 
 
 tribunal, or by the ordinary courts of the 
 
 country concerned. 
 (g) What powers of appeal are to be given, 
 (d) How the expenses involved in the settlement 
 
 of these questions are to be bori^. 
 
 9. Whether sickness' and disease not arising from 
 accident are to be provided for. 
 
 10. The bearing of the enactment upon the limit of 
 liability of shipowners for loss of life or personal injury. 
 
 .11. Whether the employe shall be entitled to enforce 
 a, claim against a foreign shipowner residing out of the 
 jurisdiction of the courts of the country where the em- 
 ploye resides, by arrest of his ship, situate for the time 
 being within the jurisdiction. 
 
 12. Whether the employe shall be entitled to contract 
 with the employer, under any and what circumstances, 
 not to claim the benefits of the enactment. 
 
 In our own country the compensatory principle has re- 
 ceived limited recognition in the coal mining industries 
 of Montana. In New York, it was given more extended 
 application in a measure which became effective in 
 September 1910. Congress, in 1908, passed a very 
 restricted statute of compensation for the benefit of 
 artisans and laborers in the federal service. Its ad- 
 ministration is in the hands of the Secretary of Com- 
 merce and Labor. Under its provisions he may allow to 
 the workmen in certain specified federal employments 
 full pay for one year or less during disability resulting 
 from injuries received at work. It is provided, however, 
 that no compensation shall be paid unless the injury 
 
EUROPEAN COMPENSATION LEGISLATION 19 
 
 results in disability for more than fifteen days and is 
 not due to the negligence or misconduct of the applicant. 
 In case of death from a work injury, the widow, child 
 or children, or dependent parents, are entitled to receive, 
 in such proportion as the Secretary may determine, the 
 v\'orkman's full wages for one year. 
 
 In many countries of Europe, the compensatory prin- Tendency to 
 
 . - . . Apply Com- 
 
 ciple was m its early stages applied to selected industrial pensation prin- 
 ciple to all 
 groups, but as conventional notions of the relative hazard Employments 
 
 of various employments yielded to the accumulated rec- 
 ords of experience, agriculture was laid under the same 
 burden as industry, and practically all employments are 
 now covered. 
 
 Reviewing this brief examination of the origin and 
 general nature and development of what is termed the 
 compensation legislation of Europe, the mind must be 
 impressed with the presence in all foreign systems of 
 certain common elements : 
 
 1. That the general policy is to shift the economic shifting 
 
 '^ 1 ./ Liability 
 
 burden of iniurv from the individual to the employment from individual 
 
 ** ^ to Industry 
 
 in which it is received, and through it, as an incidental 
 cost of production, to general society. The practical aim 
 is to mve an assurance of limited compensation. The 
 original basis of the proposal is insurance, either in- 
 directly by the creation of a limited right of recovery 
 against the employer, or directly by establishing a fund 
 to which contribution is enforced: one method estab- 
 lishing an insurance fund and eliminating personal 
 liability, and the other extending personal liability with- 
 out an insurance fund. 
 
20 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Accident Pre- 
 vention In- 
 separable from 
 Compensation 
 
 Contribu- 
 tory Insur- 
 ance Dis- 
 tinct from 
 Personal 
 Liability 
 
 Conceptions 
 of Public 
 Authority 
 in Europe 
 
 2. That the cause of accident requires consideration 
 equally with its consequences. Injury must be lessened 
 as well as relieved, and therefore while fault ceases to be 
 the basis of recovery, misconduct imperiling the life and 
 limb of others must be severely penalized. 
 
 3. That systems based upon contributory insurance 
 are distinct in fundamental principle from those which 
 merely extend personal liability. The first establishes a 
 legal right to assistance arising from the contribution of 
 the person assisted. The second establishes a legal duty 
 to relieve dependence existing in another. The former 
 anticipates impaired working capacity; the latter pro- 
 vides relief against existing distress. One makes the 
 worker help himself; the other nmkes the employer help 
 him. 
 
 4. All insurance systems strive to bring emploj^er and 
 employe together. All based upon personal liability avoid 
 consideration of the elements of personal antagonism. 
 
 5. The many evils of litigation being a motive for 
 change, all states endeavor to provide a simplified pro- 
 cedure, insuring speedy, cheap and efficient adjustment 
 of claims free from technical delay. 
 
 Back of all this vast body of European law lies 
 fundamental conceptions of public authority' essentially 
 differing from our own, and generally dominant, par- 
 liaments approaching the subject-matter of regulation 
 with substantially none of those checks upon legislative 
 action which are an important part of our system of 
 government. The legislatures with which we are familiar 
 are subject in the exercise of their power to the sharp 
 
EUROPEAN COMPENSATION LEGISLATION 21 
 
 restraints of the written constitutions of their state and 
 of the nation. Few of the countries of Europe possess 
 written constitutions. In many, the legislature is the 
 supreme authority, exercising its power with substantially 
 slight restraint. 
 
 The Continental notion of law is quite different from 
 our own. Its people are accustomed by the habits of 
 their national life to yield obedience to rules of conduct 
 prescribed by an autocratic authority for inferior sub- 
 jects. Americans, like Britons, regard established custom Established 
 as the basis of law and regard with vigorous resentment Basis of 
 
 ,.. ,T ,• n -, -.,. English and 
 
 arbitrary proposals departing from long accepted habits American Law 
 of thought and action. Indeed, from the Norman con- 
 quest to Magna Charta, English history is a record of 
 the continuous struggle between William the Conqueror 
 and his successors to compel the acceptance of the 
 Continental notion of law and the Saxon struggling to 
 reassert the supremacy of rights based upon long con- 
 tinued usage. 
 
 Partly from these considerations, attention is con- Reasons for 
 
 •^ Concentrating 
 
 centrated in the ensuing pages upon the compensatory Attention upon 
 
 Compensation 
 
 systems of Great Britain and Germany. From the Experience of 
 
 Great Britain 
 
 former, we have derived our principles of jurisprudence and Germany 
 and our methods of legal administration. The legisla- 
 tion of Parliament and the decisions of British courts 
 have always exerted a powerful influence on the legis^ 
 latures of our states and nation and the course of our 
 judicial decisions. We naturally anticipate with special 
 interest and hope to profit by examination of the manner 
 in which principles and methods foreign to our system 
 have been introduced and have operated in a nation 
 
22 ACCIDENT PREVENTION AND RELIEF 
 
 whose notions of personal liability and whose industrial 
 conditions and legislative traditions are like our own. 
 German On the Other hand, we turn to Germany, not only 
 
 Compensation 
 
 Legislation and because that country originated and developed these 
 
 statistics 
 
 Authoritatively Meas, which half the world has imitated, but because, 
 
 Recognized 
 
 as we shall observe, it has fashioned peculiarh' demo- 
 cratic methods of administration. Moreover, Germany is 
 recognized throughout Europe as the great exemplar and 
 authority upon the development and application of 
 these principles, and exercises a dominant influence in 
 their study and application. But perhaps the strongest 
 of all reasons for dwelling upon the system and records 
 of that great empire is because, Avith characteristic 
 thoroughness, she has compiled marvelously detailed 
 information respecting every circumstance of her ex- 
 perience, and progressively applies it to the continuous 
 development of a scientific scheme of accident preven- 
 tion and compensation. No other nation in the world 
 ^ . possesses data equally complete and extensive. More- 
 
 Oerman Data -^ i J f 
 
 AuThentfc^"^*^ ©ver, in her population, in the character and distribu- 
 tion of employment, in the extended use and continued 
 application of tools and mechanical appliances to new 
 occupations, in the comparative ratio of agricultural to 
 industrial workers, in fact, in all of the circumstances 
 of commercial and industrial life which make compari- 
 son profitable, Germany presents, upon the largest scale, 
 the most instructive example to which we can turn to 
 form practical conclusions respecting the value of the 
 novel principles in which we are interested. 
 
CHAPTER TWO 
 
 Underlying Principles ancl General Working of tLe 
 
 German ScLeme of Compensation for 
 
 Occupational Accidents 
 
CHAPTER II 
 
 Underlying Principles and General Working of the 
 
 German Scheme of Compensation for 
 
 Occupational Accidents 
 
 Germany is a nation of 63,000,000 people. Her pro- comparative 
 portion of industrial and agricultural population is not ^^^^^^"^^ 
 very much different from that of the United States, as is 
 evident from the following figures: 
 
 Comparison of United States and German statistics. 
 
 Population. 
 Occupations. Germany. United States. 
 
 1907 1900 
 
 1. Agriculture, Horticulture, Stock 
 
 Raising, Forestry, etc., 9,883,257 10,381,765 
 
 2. Industry, 11,256,251 7,085,309 
 
 3. Trade and Transportation, 3,477,626 4,766,964 
 
 4. Domestic and Personal Service 
 
 and Public Service, 471,695 5,580,657 
 
 5. Professional and Public Service, 1,738,530 1,258,538 
 
 Totals, 26,827,362 29,073,233 
 
 Public Officials and Soldiers in the United States are covered under 
 
 No. 4, in Germany under No. 5. 
 See United States Statistical Abstract 1909 and Statistisches Jahrbuch 
 
 1910. 
 
 25 
 
26 ACCIDENT PREVENTION AND RELIEF 
 
 Twenty-five years ago the leading men of Germany 
 became dissatisfied with the workings of its employers' 
 liability laws because, like our statutes, they were waste- 
 ful, slow in operation and antagonistic to harmonious 
 relations between employers and wage workers. Prince 
 Bismarck was the prime mover in bringing reform. He 
 reasoned that while the German government had excep- 
 tional powers to force arbitrary laws upon her employers, 
 it would not be wise to use this power autocratically. 
 Instead of opposing employers, and especially employers' 
 associations. Prince Bismarck conceived the idea of 
 making them the very instruments for carrying out a 
 novel scheme of compensation on scientific and efficient 
 lines. As a result the whole accident prevention and 
 com^eniauon^ compcusatiou systcm of the German empire rests upon 
 German ^^ the shouldcrs of employers' associations, and these have 
 
 succeeded, with the co-operation of workers, and undei* 
 the supervising control of the government, in making the 
 German plan the greatest example of what can be ac- 
 complished by a nation with proper co-operation and 
 organization between government, employers and workers. 
 The first law enacted on July 6, 1884, for the indus- 
 tries, was followed with an extension law on May 28, 
 1885, for land and water transportation, including tele- 
 graph, marine and army. It was again extended on May 
 5, 1886, to cover agricultural and horticultural pursuits 
 and forestry. It was further extended on July 11, 1887, 
 to cover building industries, tunneling, excavating, etc., 
 and finally, on July 13, 1887, sailors and fishermen were 
 covered. 
 
 Accident 
 
COMPENSATION FOR OCCUPATIONAL ACCIDENTS 27 
 
 In the year 1900 a revision of the various laws re- Revision of 
 
 Laws in 
 
 suited in their simplification and partial unification and i9oo 
 at the present time another endeavor is being made to 
 simplify and co-ordinate the various social insurance 
 acts providing for sickness, accident and invalidity relief. 
 The philosophy and the economic and legal basis 
 upon which Germany's system is built, as well as its 
 advantages and disadvantages, can best be judged from 
 a statement which we have secured from G. Neisser, 
 LL.D., Imperial Counsellor, and one of Germany's fore- 
 most legal authorities on this subject. A translation of 
 his statement is as follows: 
 
 "Production and commerce have been subjected to 
 far-reaching changes during this generation. This, in 
 connection with feverishly intensified speed of all work- 
 ing processes, has increased the chance of accidental in- 
 jury to an unusual degree. In view of the changes, the 
 civil laws of nations failed to meet the situation. They 
 gave injured workers a claim to damages only upon 
 establishing the employers' individual fault. 
 
 "Neither did the German Imperial Liability Laio of 
 June 1, 1871, meet the practical requirements of safe- 
 guarding the w^orker against the economic results of his 
 occupational hazards. Based upon the changes brought 
 about through industrial progress, it increased em- 
 ployers' liability, but it maintained the principle of 
 responsibility through fault. 
 
 "Guided by experience and carried on by the senti- m^^-Jl^^ 
 ment of increased social responsibility which, during the interested 
 last quarter of a century, permeated all classes of our 
 Vaterland, Germany's leading men undertook to make 
 
28 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Principles 
 on Which 
 Reform will 
 be Based 
 
 Employer 
 Must Join 
 Association 
 of liis Calling 
 
 legal provision lor workers injured through accidents 
 upon an entirely new and hitherto unknown basis. This 
 magnificent reform work rests upon four principles: 
 
 ^^1. Proceeding from the assumption that he who 
 creates an ^enterprise', that peculiar structure of human 
 beings, things and forces, and induces human beings to la- 
 bor among arms of steel moving at uncanny speeds, estab- 
 lishes a source of danger and becomes responsible for 
 damage resulting from this source. Under this theory 
 employers' fault need not be proven. The fact that in- 
 jury has been caused establishes a right to. compensation. 
 
 '^2. Convinced that in many cases the resources of 
 the individual employer would not prove equal to the 
 enormously increased liability, and that therefore the 
 existence of the employer as well as the compensation of 
 the injured worker would be jeopardized, individual re- 
 sponsibility was eliminated, and in its stead was placed 
 the collective responsibility of the industry. 
 
 "3. To carry out this idea large industries, as well 
 as agriculture, commerce and crafts, or small industries, 
 were organized into employers' associations grouped 
 according to callings. That is, legally incorporated self- 
 governed bodies were formed, which every employer was 
 compelled by law to join. The miller must join the 
 Millers' Employers' Association, the teamster, the Em- 
 ployers' Teaming Association, etc. Upon these organ- 
 izations was placed the responsibility of carrying and 
 administering the accident compensation system, and to 
 this end they were invested with far-reaching legal powers 
 for enforcing their rules, raising money, etc. 
 
COMPENSATION FOR OCCUPATIONAL ACCIDENTS 29 
 
 ^'4. Accident prevention, being of greater importance 
 and larger social value than compensation, was also 
 placed in the hands of these employers' associations, with 
 the necessary legal authority for enforcement of rules. 
 
 ^'These four principles of our system have proven 
 their strength and soundness. 
 
 "The majority of civilized nations have approved and 
 copied the principle of making claims for accident com- 
 pensation independent from the proof of fault. In 
 Germany no one wishes to return to the conditions which 
 existed under the old liability laws — to the innumerable 
 disputes concerning degrees of fault, which often experts 
 could not determine, and which made a damage suit 
 nothing but a gamble. As proper safeguards against 
 abuses of the system act, the restriction of maximum 
 compensation to two-thirds of the loss caused by an in- 
 jury and the legal authority for penalizing employers 
 as well as workers for violation of safety regulations — 
 these safeguards are considered sufficient, although they 
 might possibly be widened in some details. 
 
 "The principle of obligatory insurance which was obligatory 
 
 ^ Insurance 
 
 opposed SO severely for a long while, in and outside of Extending 
 Germany, has been accepted now almost everywhere. 
 It was a memorable event when, at the International 
 Congress for Social Insurance in Rome, October 1908, 
 Luzatti, member of the Italian cabinet, who for years 
 had been the most energetic champion of optional insur- 
 ance, acknowledged himself unreservedly converted to 
 the obligatory principle, and Millerand, member of the 
 French cabinet, joined him. It is almost generally rec- 
 ognized now that only obligatory insurance will protect 
 
ao 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Individual 
 Employer 
 Protected by 
 Organization 
 
 Accident 
 Prevention 
 in Germany 
 
 workers, and at the same time safeguard employers from 
 excess liability. i 
 
 ^^The elimination of i individual liability and the 
 organization among employers have proven exceedingly 
 fortuE^atevideas. if ^he individual employer has been re- 
 lieved of constant worry about his very •existence, and 
 the employers' associations have, according to the testi- 
 mony of those competent to judge, proven their full 
 ability to perform the great task which was placed before 
 them. Only the expert knowledge of the practical indus- 
 trialist l could devise such equitable standards of tax- 
 ation in .exact keeping with hazard as have been estab- 
 lished in Germany, and the fact that these, at times rather 
 hard -Jburdens, are borne without a murmur by the em- 
 ployers, is due to the knowledge that the taxation is 
 levied by their own elected trusted officers, and not by 
 Outsiders.' 
 
 "Similarly, the high development and efficiency of 
 ^accident prevention,' as carried out by German em- 
 ployers' associations, are the result of combined expert 
 technical and economic knowledge, which could not pos- 
 sibly be executed in equal measure either by govern- 
 mental officers or by employers organized according to 
 territory, instead of being organized according to crafts. 
 
 "The exemplary achievement of employers in the 
 direction of caring for the well-being of their injured and 
 sick workmen, and for their prompt restoration to health, 
 is again the direct result of the present type of organiza- 
 .tion. The building of hospitals and dispensaries far 
 beyond the requirements of the law, and the stimulus and 
 systematic direction which has been given to medical 
 
Workers' 
 Objections 
 
 COMPENSATION FOR OCCUPATIONAL ACCIDENTS 31 
 
 science and surgery through the aid of these employers' 
 organizations, could never have been exerted through 
 force of laws or any other agency. 
 
 ^^True, there are attacks of various kinds on the 
 German accident insurance system. Workers often con- 
 sider the compensation inadequate, but forget that al- 
 lowance ratios are higher in Germany than in all other 
 countries which have adopted the compensation system. 
 Furthermore, the payment of a compensation rate, fully 
 equal to sustained losses, would invite dissimulation and 
 weaken the sense of personal responsibility. 
 
 ^^Some workers take exception to the fact that they 
 have no share in the administration of the accident in- 
 surance system. They forget that the task which has 
 been placed upon the employers' association requires that 
 they must have the right to govern their own internal 
 affairs, and that the interest of the worker is properly re- 
 stricted to co-operation in accident prevention and re- 
 ceipt of legally outlined accident compensation. The 
 workers are represented in the commissions which draft 
 legal accident prevention regulations. They are also 
 represented in arbitration courts and final appeal courts, 
 where all disputed claims for compensation are settled. 
 
 ''The employers, on the other hand, are, as a general gyg^e^ 
 
 Af66ts with 
 
 rule, satisfied with the accident insurance system as ^^^^^^^ 
 adopted some twenty-five years ago. In fact, they have 
 accepted the heavy personal and financial burdens of the 
 new state of affairs in a spirit of cheerfulness. If, of 
 late, there is a change here and there in this sentiment, it 
 does not signify opposition to the original measure, but 
 to innovations carried out later. For instance, the in- 
 
32 ACCIDENT PREVENTION AND RELIEF 
 
 creased taxation for reserve funds is considered excessive 
 bj a great many. Recent legislative tendencies to restrict 
 the autonomy of the associations are feared and opposed. 
 "It must be acknowledged tliat some of the small em- 
 ployers are groaning under the insurance burdens, and 
 it is worthy of consideration whether or nbt, for some of 
 these industries, which technically do not differ much 
 from each other, territorial organization instead of 
 organization by crafts might not bring about greater 
 economy in expenditures. 
 Social "Now a word about the social political theorists. For 
 
 Theories years they have been calling for unification of all work- 
 
 ers' insurance — accident, sickness and invalidity — but 
 they have not been able to give more than a semblance 
 of reason for such change, nor have they been able to con- 
 struct a unified social insurance system which does not 
 materially lessen somewhere the benefits of the present 
 system. A noticeable change has taken place in public 
 sentiment as well as in scientific theories of workers' 
 insurance. It has been realized that the various branches 
 of workers' insurance — sickness, accident and invalidity — 
 rest upon different principles, and therefore necessarily 
 require different forms of organization. It follows that 
 it is better to let each branch grow according to its own 
 special requirements, than to bring together by force that 
 which does not belong together. 
 
 "The bill, which is at the present time before the 
 Reichstag, does not restrict the independence of the em- 
 ployers' associations, but in some directions it makes 
 dangerous concessions to the unification scheme. 
 
COMPENSATION FOR OCCUPATIONAL ACCIDENTS 33 
 
 "Every civilized nation must, of course, adapt its system 
 
 . T J . X i . , . must be 
 
 accident insurance system to its own economic and social Adapted 
 conditions and to the characteristics of its people, but Requtrements 
 it is to be wished that the insurance legislation of every 
 nation may succeed in strengthening the sense of social 
 responsibility, in relieving individual distress and in 
 maintaining and increasing the strength and efficiency 
 of the nation in the same measure in which the German 
 empire has succeeded, thanks to the accident insurance 
 reform of Emperor William I." 
 
 A Nummary of Recent German Figures 
 
 The following general facts and figures, taken from 
 the statistics of 1908, indicate the magnitude of Ger- 
 many's accident prevention and relief system. 
 
 Out of 63,000,000 people with 16,000,000 wage workers, statistics 
 
 of Germany's 
 
 in 6,100,000 places of employment, there are 23,750,000 Relief 
 
 System 
 
 persons insured against accidents. 
 
 Benefits amounting to |39,500,000 have been paid dur- 
 ing 1908 to 906,147 injured workers, 81,198 widows, 4,192 
 parents and 109,757 children; 2,500,000 accidents have 
 been compensated with $451,000,000 during the last 25 
 years. 
 
 The first year of the accident compensation system 
 was 1885. 
 
 In 1885, 15,002 were paid in pensions for 268 cases of 
 injury. 
 
 In 1890, 15,088,000 were paid in pensions for 100,251 
 cases. - . ' 
 
Becord of 
 New 
 Accident 
 Cases 
 
 34 ACCIDENT PREVENTION AND RELIEF 
 
 In 1895, 112,610,534 were paid in pensions for 318,368 
 cases. 
 
 In 1900, 121,838,000 were paid in pensions for 594,889 
 
 cases. 
 
 In 1905, $34,036,928 were paid in pensions for 892,901 
 cases. * 
 
 In 1908, 139,471,180 were paid in pensions for 1,008, 
 677 cases. 
 
 At first glance tliis terrific growth of injury cases 
 and compensation seems ruinous to a nation or her 
 industries. But it must be borne in mind that the annual 
 pension method of Germany adds the new cases to the 
 old, and the total number of pensioners will grow for a 
 number of years to come. 
 
 The record of 7iew accident cases, lasting more than 
 thirteen weeks, during the twenty-five-year period, gives 
 this result : 
 
 268 total new cases. 
 42,038 " 
 75,527 " 
 107,654 " 
 
 In 1885, 
 
 In 1890, 
 
 In 1895, 
 
 In 1900, 
 
 In 1905, 
 
 In 1908, 
 
 141,121 
 142,965 
 
 Summary of Facts and Figures for 1908 
 
 9,687 workers were killed; 1,072 workers were perma- 
 nently and completely disabled; 56,806 workers were per- 
 manently maimed; 73,584 workers were temporarily dis- 
 abled; 142,965 injuries extended over 13 weeks; 662,321 
 is the total number of injured workers; 1,008,677 workers 
 
COMPENSATION FOR OCCUPATIONAL ACCIDENTS 35 
 
 received pensions to the amount of |39,500,000 for occu- 
 pational injuries. 
 
 One Pension for Every Sixty-three Inhabitants 
 Truly these are tremendous figures which might be 
 used to splendid advantage for terrible comparisons, such 
 as we are accustomed to hearing on the lecture platform, 
 and to seeing in some newspapers. How small looks in comparison 
 comparison, the total of 6,000 killed and wounded in the Sie'in^wLf 
 Spanish and Philippine wars, or the 105,000 killed and 
 injured soldiers in the six bloodiest battles of our Civil 
 War, or even the 500,000 killed and injured workers, 
 which number has been given by some one as the annual 
 result of accidents in the United States. But this report 
 is not intended as a work of fiction; therefore, we will 
 continue to consider and compare facts only. 
 
 The death rate, due to work accidents, has increased in 
 Germany, as is evident from Figure 6. 
 
 FIGURE 6 
 DEATHS CAUSED BY OCCUPATIONAL ACCIDENTS 
 
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36 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 But the total number of deaths due to occupational 
 accidents is small as compared with other causes, as shown 
 in Figure 7. 
 
 FIGURE 7 
 DEATH CAUSES. (STATISTICS J9O5-07) 
 
 SQ% 
 
 Occupational accidents caused in 1905-07 eight-tenths of one per cent 
 of the total number of deaths. 
 
 Org-anization 
 Receipts and 
 Expenditures 
 
 Figure 8 will bear careful study. It shows organization 
 receipts and expenditures of the German accident insur- 
 ance system. One of the most interesting things it points 
 out is the large number of workers not covered by com- 
 pulsory insurance who come under the Act voluntarily. 
 
 It seems that with the exception of one and a half or 
 two million people engaged in mercantile pursuits, every 
 individual who can possibly be placed under such an Act 
 

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COMPENSATION FOR OCCUPATIONAL ACCIDENTS 37 
 
 is now insured, either by compulsion or voluntarily. We 
 are told that the law will be extended in the near future 
 to cover all those engaged in mercantile trades, earning 
 f750 per annum or less. 
 
 The growth of workers' accident compensation in Ger- Growth of 
 many since 1885 is illustrated in Figure 9. cotrenLtion 
 
 Germany undertook far-reaching social relief by legis- '"^ ^^''"'^"y 
 lation and insurance on a very large basis, far ahead of 
 that of any other nation, and the experiment has been 
 watched with great interest at home and abroad. 
 
 The great internal harmony which Prince Bismarck 
 considered of prime importance seems not to have been 
 realized, as is evident from many of the letters of German 
 manufacturers contained in the Appendix. Dr. Spiecker, 
 a leader among German industrialists, president of the 
 Siemens & Halske Co., and chairman of the League of Ger- 
 man Employers' Associations, said, during a recent speech : 
 ^'It is, unfortunately, true that the first object of 
 social insurance, which was to bring lasting internal 
 peace to our citizens, has so far not been real- 
 ized. Nevertheless, it appears lately that at least a 
 small ray of light has penetrated the darkness, and 
 that there is little realization among workers of the 
 benefits derived from our soci il insurance. On the 
 other hand, economically and industrially, social in- 
 surance seems to have benefited Germany." 
 Dr. Kaufmann, president of the Imperial Insurance 
 Department, and the highest Government official connected 
 with German social insurance, made the following signifi- 
 cant statement to us : 
 
38 ACCIDENT PREVENTION AND RELIEF 
 
 ^^Tlie workers' lives preserved mean maintenance 
 and increase of our national resources and there- 
 fore give splendid returns for the heavy financial 
 burdens which social insurance places upon our eco- 
 nomic structure. It is not an accident that the un- 
 precedented expansion of German coiflmerce and in- 
 dustry and the wonderful improvement in the eco- 
 nomic welfare of the nation during the last twenty 
 years have happened concurrently with thorough- 
 going improvement in the condition of our workers. 
 There is a close connection between the two events." 
 
 progrress of A Striking illustration of the progress of German in- 
 
 German 
 Industries dustrics is givcu in the following figures taken from the 
 
 statistics of the employers' associations for electrical and 
 
 mechanical trades. 
 
 During twenty-three years there has been an increase 
 in manufacturing concerns from 1,062 to 6,536, in workers 
 employed from 44,337 to 238,345, in annual pay roll from 
 ?9,000,000 to 180,000,000, increase of average wages 59 
 per cent. 
 
 While the interest of German employers and public 
 officials in the social insurance progress of other countries 
 is without doubt based primarily on considerations of 
 liumanity and good-will, the Germans make no secret of 
 their desire to have tlieir system of obligatory social insur- 
 ance adopted generally in all civilized countries. They 
 claim, and with much justice, that general obligatory 
 workers' insurance against accidents, sickness and invalid- 
 ity, has reduced unfair competition in Germany, and has 
 brought the employers' interests together in many desir- 
 able ways. It has made it impossible for the selfish, un- 
 
COMPENSATION FOR OCCUPATIONAL ACCIDENTS 39 
 
 scrupulous or inexperienced employer to underbid his 
 humane, conscientious and experienced neighbor by giving 
 less consideration to the health and well-being of his em- 
 ployes. Germany would like to carry this same theory 
 into practice with the employers of other nations for the 
 sake of international competition. 
 
 In a recent publication Prof. Dr. Hartmann, the best- 
 known technical expert on accident prevention in Germany 
 and one of the highest government officials, says : 
 
 "Various arguments have been made for the ex- Germany 
 hibition of the German national insurance system Nations to 
 at various foreign expositions. It was said that call- syst^em 
 ing attention to the great social monument which 
 Germany has built up in this direction must surely 
 increase the respect of the world. On the other hand, 
 it was argued that since German employers are 
 placed under heavy burdens on account of their 
 large share of workers' insurance premiums, it 
 would be well to have other countries know and 
 imitate Germany's system. Foreign countries hav- 
 ing to carry the same burden would make the ques- 
 tion of international trade easier for Germany." 
 The financial burden of German social insurance is 
 best expressed in a quotation from Dr. Kaufmann's letter 
 to us. He says : "From your studies you understand in 
 a general way the manifold benefits of our insurance sys- 
 tem. Nevertheless, I want to call attention to a few facts 
 and figures. Up to December 1909, the complete system 
 (accident, sickness and invalidity insurance) paid f 1,925,- 
 000,000 to 94,000,000 sick, injured, invalidated workers 
 and their dependents. The complete system pays out 
 
40 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 daily |475,000 and has accumulated reserve funds amount- 
 ing to 1540,000,000. These figures give an indication of 
 the economic importance of social insurance." 
 
 Compensation to injured workers in Germany con- 
 sists of: 
 
 1. Free medical attendance, including aaedicine, sup- 
 ports, crutches, etc. 
 
 2. Pension up to two-thirds the annual wage rate for 
 total disability and in proportion for partial disability. 
 For the first 13 weeks this pension is paid out of the 
 sickness fund. 
 
 3. In case of complete helplessness requiring nurses 
 or attendants, pension up to 100 per cent of annual wage 
 rate may be allowed. 
 
 4. Free treatment in hospitals or sanitariums and 
 pension of 60 per cent maximum to dependents. Compen- 
 sation continues as long as disability continues, but is sub- 
 ject to increase or decrease in proportion to increased or 
 decreased earning capacity as the result of injury. 
 
 5. In case of death 20 days' wages, but not less than 
 $12.50, and pension to dependents (widows or widow- 
 ers, children under 15 years of age, parents, grand-parents 
 or grand-children) amounting to not more than 60 per 
 cent of annual wages. Three hundred times average daily 
 wage is usually considered annual wage. 
 
 Deferred Payments 
 
 One more feature of the German system needs to be 
 explained before we go into details. It is the lack of 
 providing for deferred payments in the accident insurance 
 scheme. On this subject the sentiment among employers 
 
COMPENSATION FOR OCCUPATIONAL ACCIDENTS 41 
 
 is almost universal. They claim that even with its ac- 
 knowledged faults this feature of their system is much 
 superior to the methods used elsewhere of attempting to 
 cover such deferred payments. They say that neither 
 twenty-five years ago, when Germany started, nor now, 
 are there statistics available upon which to base, with 
 reasonable certainty, the future cost of accident compensa- 
 tion. They feel that it would be a most serious mistake 
 to tie up the billions of dollars required to cover any rea- 
 sonable estimate of deferred payments, and think that the 
 withdrawal of such sums Avould do much more harm to 
 German industrial development, which now needs all the 
 available cash in the country, than any harm that can 
 possibly come to future industries which necessarily will 
 have to start under a heavier financial burden due to con- 
 stantly increasing insurance premiums. They feel that 
 such heavier burden is more than outw^eighed by the 
 strenuous pioneer work which had to be done by the 
 German industries at the beginning, and which must be 
 done even now. How'ever, deferred payments are not Reserve 
 altogether disregarded. All employers' associations are be"ing^ 
 establishing reserve funds at increasing percentages. Of 
 last year's premiums 9 per cent w^as laid aside for reserve 
 to cover deferred payments. Furthermore, some em- 
 ployers' associations — for instance, the Excavating Con- 
 tractors' Association — covered the whole of the deferred 
 payments because the nature of their w^ork and their mem- 
 bership are not as permanent and steady as those of other 
 crafts. 
 
 Formed 
 
CHAPTER THREE 
 
 Detail Description or Some or the Important Features of tLe 
 German System — Emciency, Prompt and Proper 
 Medical Aid, tlie *' Doctor Question," 
 tLe Contributory Principle 
 
CHAPTER III 
 
 Detail Description of Some of the Important Features 
 
 OF THE German System— Efficiency, Prompt and 
 
 Proper Medical Aid, the '^Doctor Question," 
 
 THE Contributory Principle 
 
 We have pointed out that wastefulness is one of the wastefulness 
 
 a Serious 
 
 serious faults of our present employers' liability system. Fault m 
 
 , . Present 
 
 If we were to consider the subjects according to their systems 
 importance, we would place the lack of general accident 
 prevention activity and antagonism to harmonious rela- 
 tions ahead of efficiency, but for technical reasons we 
 shall consider these subjects later on. 
 
 Practically all accident insurance in Germany is of the 
 mutual kind. Accident insurance institutions are em- 
 ployers' associations organized according to trades or 
 crafts for the purpose of carrying, mutually and col- 
 lectively, their workers' accident compensation risk. Under 
 the German law every employer must belong to the or- 
 ganization of his craft and to these employers' associa- 
 tions is given the necessary legal power to enforce acci- 
 dent prevention and insurance rules, not only upon the 
 employer but also upon the worker. For violation of rules 
 the employer can be fined |250 for each offense, and 
 in addition his accident insurance rates can be increased. 
 A worker can be fined |2.50 for each violation and there 
 is now a measure before the Reichstag which would make 
 
 45 
 
46 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 The German 
 
 Government'! 
 
 Attitude 
 
 Respecting 
 
 Employers 
 
 willful and serious destruction of safety appliances a pen- 
 itentiary offense. The whole administration of the com- 
 pensation law has really been placed in the hands of the 
 united employers, always, of course, under the supervis- 
 ing control of the state, through the Imperial Insurance 
 Department. • 
 
 It practically amounts to this. Germany says to her 
 employers : 
 
 "The interest of the state demands the good citizen- 
 ship and highest efficiency of every worker. Good citizen- 
 ship and efficiency are dependent upon mental and phys- 
 ical welfare. It is the duty of the state to reduce to the 
 smallest possible degree all dangers to the workers' well- 
 being. Occupational accidents are a large factor in this 
 direction. We must prevent accidents and use all pos- 
 sible force and ingenuity in that direction. For unpre- 
 ventable accidents we must compensate the injured 
 workers and their dependents. The public must pay for 
 this compensation, but instead of levying a general tax 
 we make it your duty to collect this compensation from the 
 public by adding to the price of your products. In order 
 that there can be no unfair advantage, we compel every 
 employer to pay his share toward proper insurance of his 
 workers. We must be just to the workers, but also just 
 to the employers. The employers must not be unneces- 
 sarily burdened. We must have a system which gives 
 high efficiency in the industries and also high state effi- 
 ciency. Our incapacitated workers must be taken care 
 of in proportion to their decreased earning power, but we 
 must avoid anything that will have a tendency to place 
 premiums upon laziness, dissimulation, imagination or 
 
13 
 
 0^ 
 
 D 
 
 a 
 
 u 
 
 D 
 
 CO 
 
 Z 
 
 o 
 
 1 
 
 o 
 u 
 
 H 
 
 z 
 
 Q 
 
 O 
 U 
 
 z 
 
 o 
 
 O 
 U 
 
 z 
 u 
 
 g3 
 
 N 
 
 12 9 P 
 
FEATURES OF THE GERMAN SYSTEM 47 
 
 poverty. Every individual's reasonable work is required 
 for the good of the nation, and to this end it is important 
 that an injured worker be restored as promptly and as 
 efficiently as possible from the position of a consuming 
 member to the position of a producing member of soci- 
 ety. Go ahead, you employers, get together! Elect your 
 own officers, adopt your OAvn rule's and regulations, elimi- 
 nate waste, friction and red tape. Get down to business 
 and get results. The less waste you have, the fewer ac- 
 cidents you have, the less you will have to pay for insur- 
 ance and the less the nation will have to pay for com- 
 pensation." 
 
 We shall point out how the employers have made good. High 
 
 EfficiGncv 
 
 The ability and the energy of the men who, as elected of the 
 
 1 -I German 
 
 officers of employers' associations without pay, have served system 
 their crafts and their country, have created in twenty-five 
 years a social insurance structure of which the nation is 
 proud, and rightly so. 
 
 The total cost of litigation under the German system 
 is only 1.2 per cent of the total amount of insurance 
 expenditures, and the total efficiency of the insurance 
 system is remarkably high. It is said, by well informed 
 persons, that of the money paid by employers for liability 
 insurance in the United States only from 20 to 40 per 
 cent reaches the injured workers. 
 
 Figures 10 and 11 indicate the efficiency of the Ger- 
 man system of compensation for occupational accidents. 
 Figure 10 analyzes the total cost, while figure 11 analyzes 
 the detail expenditures which are carried under the Ad- 
 ministration item of 12.8 per cent in Figure 10. 
 
48 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Reasons for 
 Low cost of 
 German 
 System 
 
 The term "administration expense^' is often used very 
 ambiguously. Not often is it construed as definitely as we 
 cover it here, that is, as meaniug every expenditure which 
 cannot be charged to compensation or to reserve fund. 
 Medical attention for injured workers is considered part 
 of the compensation, the same as hospital ^expenses. This 
 item amounts to 1.5 i)er cent of the total sum. 
 
 It must be remembered that such a high point of ef- 
 ficiency can hardly be attained under any other system. 
 
 1. — Because employers' associations carry accident 
 insurance on a mutual basis and need make no profits for 
 stockholders, nor do they pay commissions of any kind to 
 solicitors. 
 
 2. — They are headed by employers of high stand- 
 ing and much experience, who devote their time and in- 
 telligence to the good cause without pay. 
 
 3. — Because prevention is encouraged under this 
 system. Insurance rates are always based by expert ad- 
 justers upon the hazard of each individual shop, making 
 due allowance for the money and energy spent in acci- 
 dent prevention appliances, somewhat on the lines of our 
 mutual fire insurance companies. 
 
 There is an additional reason for the comparatively 
 low cost of the German system. Much of the expense of 
 the Government Insurance Department is paid out of gen- 
 eral government funds. Prof. Dr. Manes, one of the best 
 European experts on this subject, whose guidance has 
 been of very great value to us, estimates that if all the ex- 
 pense of the Government Insurance Office was charged to 
 the system it would raise the administration expenses 3 
 to 4 per cent. On the other hand, it is figured that this 
 
FEATURES OF THE GERMAN SYSTEM 49 
 
 expenditure, which might well be considered a govern- 
 ment contribution to the workers' compensation fund, is 
 perfectly legitimate because the beneficial results of 
 workers' insurance upon charitable institutions, poor- 
 houses, etc., which must be kept up by the state or cities, 
 warrant this government contribution. AYliile we are 
 here discussing, primarily, relief for occupational acci- 
 dents, it is illuminating and proper to say a word about 
 the extent, efficiency and desirability of the whole social 
 insurance system — sickness, accident and invalidity. The 
 whole system is mutual and contributory. That is, the 
 state, employers and workers each pay part of the main- 
 tenance expenses. A study of Figures 12 and 13 brings 
 out the fact that workers pay 40 per cent of the cost and 
 receive 72 per cent of the total funds gathered. 
 
 Under the heading "Efficiency'^ we should consider the 
 justice and policy of lump sum payments vs. pensions. 
 The advantage of weekly pensions for injured workers weekly 
 
 . Payments to 
 
 or dependents as compared with lump sum payments is workers 
 so thoroughly fixed in the minds of German theoretical BesrMeThod 
 and practical experts, that it is impossible to find a single 
 advocate of lump sum payments. These experts point out 
 that accident compensation to injured workers is intended 
 as payment of a debt by the public, through the agency 
 of the employer, to persons hurt while directly or indirectly 
 serving the public. Therefore, the injured person is, or his 
 dependents are, entitled only to conditions similar to 
 those which were disturbed by the injury. To place in their 
 hands, accustomed only to the handling of weekly wages, 
 large sums, usually does more harm than good. It is th(? 
 duty of the public to demand, and it is the duty of the 
 
50 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Necessity of 
 Immediate 
 Medical 
 Attention 
 
 Savings 
 FJfEected by- 
 Specialized 
 Medical 
 Systems 
 
 injured or his dependents to guarantee, no further de- 
 pendency upon public charity in return for compensation. 
 
 Probably the most important requirement in the di- 
 rection of efficiency is prompt and proper medical aid. 
 Authorities all agree, and are very emphatic on the point, 
 that immediate attention to all injuries sAves much suf- 
 fering, many lives and limbs, and a great deal of money. 
 This principle has been recognized by progressive em- 
 ployers and insurance companies in the United States, 
 but prompt relief is still lacking in too many instances. 
 It would seem almost impossible to have relief extended 
 more promptly and more systematically than it comes for- 
 ward in Germany. 
 
 Under the German laws every injured worker and 
 his dependents are taken care of automatically and im- 
 mediately after the occurrence of an accident. The first 
 thirteen weeks medical attendance and compensation are 
 provided out of the Sickness Insurance Fund. Beginning 
 with the fourteenth week it is provided out of the Ac- 
 cident Insurance Fund. 
 
 Ma*ny German employers' associations have volun- 
 tarily established dispensaries and hospitals:, and insist, 
 as they have a right to under the law, upon having in- 
 jured employes treated free of charge. Every injury, 
 even a slight one, is examined and treated by medical 
 specialists. They have learned that a most thorough and 
 specialized medical system is a splendid precaution against 
 more serious harm. 
 
 A recent special volume on this subject, written for 
 the Berlin celebration, devotes pages to specific cases, il- 
 lustrating the tremendous saving that can be accom- 
 
FEATURES OF THE GERMAN SYSTEM 51 
 
 plished in this direction. Let us quote one or tAvo il- 
 lustrations. The Bavarian Building Industries Em- 
 ployers' Association established, to its own satisfaction, 
 that the expenditure of approximately |8,000 in prompt 
 and expert medical attention to its injured workmen, 
 saved approximately |160,000 in compensation expenses. 
 A Vienna insurance institution figured the net savings 
 in compensation due to the establishment of an ambu- 
 lance and first aid medical station to be |27,000 in nine 
 months. 
 
 An engine driver 35 years old was scalded during a 
 wreck. The attending general physician thought the am- 
 putation of the left arm necessary. The employers' as- 
 sociation succeeded, through specialists' treatment at its 
 own hospital, in saving the arm and bringing it back to 
 normal strength. At the time of accident the driver 
 earned |330 per annum — a few years later |425 per an- 
 num, which proves that his earning capacity was un- 
 impaired. The amputation of the arm would have meant 
 a cripple with less than half earning capacity and a life 
 compensation of |150 annually, equal to |8,000 or |10,000 
 total expense to the Employers' Mutual Insurance Asso- 
 ciation. We might quote fifty similar cases showing the 
 wonderful results of conserving the best resources of the 
 nation, the self-respect and earning capacity of her work- 
 ers, by means of prompt and proper medical attention. 
 
 There is another phase of efficiency in which prompt Prevention of 
 
 ^ Imposition 
 
 medical attention by experienced doctors with special ac- and imaginary 
 
 •^ ^ . Ailments 
 
 cident training is of immeasureable value — in prevention 
 of simulation and imaginary ailments. Up to the present 
 time German prevention experts have concentrated their 
 
52 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 energy upon serious accidents, and in a later chapter 
 we shall point out that their efforts have been successful. 
 But the number of light accidents is increasing rapidly. 
 A study of Figure 14 shows that 21.5 per cent of all ac- 
 cidents are of a duration of more than 13 weeks, while 
 78.5 per cent are of a duration less than 13«sveeks. 
 
 FIGURE 14 
 
 DURATION OF INDUSTRIAL INJURIES 
 
 0% 
 
 50% 
 
 Ratio of 
 Light to 
 Serious 
 Accidents 
 
 In point of cost statistics show that approximately 75 
 per cent of the total funds expended for accident compen- 
 sation and prevention must be charged to the 21.5 per 
 cent of the accidents lasting more than 13 weeks, while 
 only about 25 per cent of the expenditures can be charged 
 against the 78.5 per cent of accidents lasting less than 
 
FEATURES OF THE GERMAN SYSTEM 53 
 
 13 weeks. This shows the importance of preventing seri- 
 ous accidents. Nevertheless the rapid growth in the num- 
 ber of light accidents and the serious part which simula- 
 tion and imagination play in this growth, have resulted 
 in the concentrated effort of German experts to reduce 
 the number of such accidents. 
 
 It is pointed out that the careful attention which is Medical 
 
 , ,.,.... , ., Attendant 
 
 now given to slight injuries enlarges the workers' ideas should be 
 of their importance. This, and the fact that he knows 
 pensioners among his acquaintances who receive, regu- 
 larly, payments for past injury, act as powerful mental 
 suggestion and promote simulation as well as imaginary 
 ailments. A Swiss medical specialist, in discussing this 
 subject, says : "To me it is a final conclusion that in cases 
 of accident the efficiency of the medical attendant is in 
 direct proportion to his special training for such work. 
 Simulation, which usually begins very soon after an ac- 
 cident, is much strengthened by uncertain action and lack 
 of understanding on the part of the attending physician. 
 No argument, threat or fear of penalty will succeed in 
 eliminating simulation or imagination later on if im- 
 proper attitude of the attending doctor immediately fol- 
 lowing the accident has allowed them to take root." It 
 is generally admitted among German experts that simu- imposition 
 lation and imagination are the most serious drawbacks Advancement 
 to the progress of scientific accident compensation. Not • 
 one of these experts admits that the "German system" is 
 more susceptible to deception than any other system so 
 far known. In fact, it is claimed that these drawbacks 
 are inherent to any kind of insurance. Germans point to 
 the growth of fraudulent claims in fire, life and sickness 
 
5 J: ACCIDENT PREVENTION AND RELIEF 
 
 insurance, and say there will be such fraud as long as 
 there are human beings. The temptation to secure some- 
 thing for nothing has proven too strong for many a per- 
 son who seemed honest under normal conditions. But 
 Germans do not stop at philosophizing. The various em- 
 ployers' associations have taken steps to reduce simula- 
 tion and imagination to the smallest possible degree, and 
 they say that next to close personal contact between the 
 officials of the insurance and prevention system, immediate 
 and proper medical attention by the associations' medical 
 expert is the most important factor. 
 The "Doctor The "doctor question," as it is generally known all 
 
 over the Continent, has become a most important factor 
 internationally in workingmen's accident compensation. 
 At a recent international conference at The Hague almost 
 three-fourths of the time was devoted to this question, one 
 element advocating the selection of doctors by the insurer 
 (usually the employer) and the other advocating the selec- 
 tion by the injured workman. The latter proposition was 
 rejected by a large majority of the international delegates. 
 France seems to have had especially bad experience in 
 cases where the injured workman selects his own doctor. 
 It is stated that the special expert training which efficient 
 accident medical experts must have, is not possessed by 
 the ordinary physician, and it is openly charged that col- 
 lusion between injured workmen and unscrupulous med- 
 ical men has very much increased simulation, and has 
 established a certain class of ambulance-chasing doctors. 
 
 The tendency toward simulation requires a long wait- 
 ing period for injured workers. The German system gives 
 
FEATURES OF THE GERMAN SYSTEM 55 
 
 unusual advantage in this direction because the injured 
 receives relief from siclvuess insurance funds during the 
 first thirteen weeks. 
 
 The co-operation of wage workers Is an important workers* 
 
 Co-operation 
 
 phase in the direction of efficiency and elimination of Needed 
 simulation. Germany recognized that it would be unjust 
 and unwise to penalize the fair and progressive employer 
 or worker for the acts of the reactionary or lazy members 
 of the craft. 
 
 The causes of all accidents can be summed up under causes of 
 
 Accidents 
 
 four heads. They are due to employer's fault, to worker's 
 fault, to the combined fault of the two, or to the hazard 
 of the occupation. Figures 15 and 16 picture responsi- 
 bility for industrial and agricultural accidents. 
 
 The principle of compensating the workers for acci- 
 dents due to the hazard of the industry or to the em- 
 ployer's fault is sound, but the principle of paying the 
 injured worker for accidents due to his own fault is neither 
 sound nor reasonable. He should be given the benefit of 
 the most liberal treatment, but without his co-operation 
 and contribution we cannot hope to progress as rapidly 
 in many directions, and especially in the direction of 
 prevention, as we should. 
 
 Mr. Louis Brandeis in discussing workers' contribution ^ L^wyet^s 
 "from the standpoint of the lawyer," in the splendid little ^I'^^^^j^l^t^^y 
 booklet distributed by the Ridgway Company, says: 
 
 "The funds required to make compensation 
 should be raised by contribution from both employer 
 and employe, preferably in equal shares, and pro- 
 portionately to wages. 
 
56 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Equitable 
 Adjustment of 
 Contribution 
 and 
 Compensation 
 
 "No system can be effective in preventing acci- 
 dents which is not of a nature to secure the fullest 
 co-operation of employer and employe; and none can 
 be just which does not place the burden of making 
 compensation for accidents actually occurring joint- 
 ly upon those who jointly had the responsibility of 
 preventing them. 
 
 "The compensation should be fairly commensu- 
 rate with the loss. It should extend to the protec- 
 tion of the dependent widow and children. It 
 should be made not in a lump sum but in install- 
 ments continuing throughout the period of need. 
 It should so far as possible be definite in the 
 amounts to be paid, and should bear a just relation 
 to the amounts contributed." 
 The argument is often made that even if the employer 
 pays the whole compensation, the worker contributes, first, 
 through his physical suffering while injured; second, 
 through the rate of compensation which is materially 
 lower than the employe's regular income while at work. 
 Several national systems have been adopted on this theory 
 but it looks like greater wisdom and better policy to se- 
 cure the worker's financial contribution and co-opera- 
 tion while he is well and to pay him the full equivalent of 
 his lost earning capacity while injured. 
 
 This is the theory of the German system. Sixty-six 
 per cent of the annual wage rate (300 days' full wages), 
 which is ordinarily the highest compensation paid, is con- 
 sidered the full equivalent for complete disability, on the 
 theory that the ordinary lay-offs, expenses of tools, work- 
 
FEATURES OF THE GERMAN SYSTEM 57 
 
 ing clothes, car fare, etc., while at work consume one-third 
 of this annual wage rate. 
 
 Kecognizing the necessity of the worker's co-operation, Proportion of 
 
 ^_ _, i , w -, Compensation \ 
 
 the German system places 17 per cent of the total acci- Bome by ) 
 
 Workers f^^ 
 
 dent insurance cost upon the workers. 
 
 Figure 17, which has been prepared under Prof. Manes' 
 supervision, illustrates this contribution. Several other 
 experts figure that the workers' contribution is less, but 
 the definite amount matters very little here. It is the 
 principle w^hich is important. The contributory principle 
 in the accident insurance system of Germany is carried 
 into practice in a way which is sometimes misunderstood. 
 The statement is sometimes made in this country that 
 the workers do not contribute in Germany. This is er- 
 roneous. Up to the 14th week the injured worker re- 
 ceives his compensation, including medical attention, 
 through the sick insurance fund. Sick insurance is ob- 
 ligatory the same as accident insurance, and is paid for 
 two-thirds by the worker, one-third by the employer. J 
 
 An important feature of joint contribution is the fact joint 
 
 ^ Contribution 
 
 that it opens the way for meetings between workers and Fosters 
 
 ^ ^ Harmonious 
 
 employers. It establishes a connecting link which, ac- Relations 
 
 ^ '^ Between 
 
 cording to the experience of European, as well as Amer- Employers 
 ican manufacturers, is of invaluable service in fostering 
 harmonious relations between employers and workers. 
 
 The contributory principle is carried into practice in 
 Germany not only in accident insurance, but in all social 
 insurance, as shown in Figure 13 (insert p. 49). Workers' 
 contribution is recognized as just and important in the 
 Swiss bill, which is expected to become a law during this 
 
58 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Workers' 
 
 Contribution 
 
 Endorsed 
 
 by most 
 
 German 
 
 Authorities 
 
 Representative 
 Powers of 
 Contributors 
 
 session of the Swiss Parliament. The bill also recognizes 
 the propriety of government contribution to the accident 
 compensation fund. The relative contributions from the 
 three parties which is planned in this Swiss bill is showr 
 in Figure 18. Swiss government insurance officials im 
 pressed us as being extraordinarily expert, even among 
 the great specialists of Europe. 
 
 The Swiss bill is based upon the experience of othei 
 progressive nations. It proposes to cover all accidents 
 those occurring away from work as well as those occur- 
 ring at work. 
 
 The advisability of workers' contribution to accideni 
 insurance funds, while questioned by a few, is recognizee 
 and endorsed by the large majority of German author 
 ities and the efficiency of accident prevention, as wel 
 as the elimination of simulation and imaginary ailments 
 according to these authorities, is dependent to a verj 
 large extent upon workers' contribution. The extent tc 
 which the contributory principle is carried out in various 
 European countries is evident from a study of Figure 4 
 page 14. 
 
 Another phase of the contributory principle as prac 
 ticed in Germany needs exposition here. Contribution oi 
 taxation means representation. German workers paying 
 17 per cent of the accident compensation fund in return 
 have representation (by election) in the arbitration 
 courts, the appeal courts and the commissions which 
 draft accident prevention regulations. Workers have nc 
 voice in the administration or management of the com- 
 pensation funds. Socialistic labor leaders have been con- 
 testing for such representation for the political and other 
 
FEATURES OF THE GERMAN SYSTEM 59 
 
 influence it gives them over the working class. Rather 
 than give this representation German employers would 
 pay the whole premium. 
 
 Sickness insurance, of which the workers pay two- socialists 
 thirds and the employers one-third, is almost entirely in suTkneL 
 the hands of Socialistic labor leaders. This control is so 1"^"^^"^^ 
 obnoxious to the government and to the majority of the 
 employers that a larger contribution (50 per cent instead 
 of 33 per cent) and a proportionately larger percentage of 
 representation is planned for the employers now. 
 
^ 
 
CHAPTER FOUR 
 
 Obligatory Insurance an Important Factor m A.ccident 
 
 Compensation — Various Forms of Insurance, 
 
 Mutual Insurance, Statistics, Scientific 
 
 Inspection, Litigation 
 
I 
 
 CHAPTER IV 
 
 Obligatory Insurancp] an Important Factor in Acci- 
 dent Compensation — Various Forms of Insur- 
 ance, Mutual Insurance, Statistics^ 
 Scientific Inspection, Litigation 
 
 Many European nations, and among them Germany, insurance 
 
 the best 
 
 long ago learned that the creation of a right of recovery Guarantee 
 
 of 
 
 which cannot be realized is of no practical value, and that compensation 
 insurance alone can guarantee compensation to all injured 
 workers, without respect to the financial responsibility 
 of the employers. The conditions created by the injury 
 of a wage earner whose family is dependent upon his sup- 
 port are no different whether he works for the largest cor- 
 poration or the smallest individual employer. 
 
 The small employer is a much more serious factor in 
 f this problem than is generally understood. In many of 
 our interviews with large and small employers in Ger- 
 many, and in many of tlie letters, numbering one hundred 
 
 or more, which we have received from presidents of Ger- 
 es 
 
64 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Average 
 Ratio of 
 Employers to 
 Workers 
 
 The Small 
 Employer 
 a Prominent 
 Factor 
 
 man employers' associations, the importance of provid- 
 ing for the small employer and his one, two or three 
 workers, is emphasized. 
 
 The latest estimate indicates that in Germany 66 in- 
 dnstrial employers' associations cover 696,824 employers 
 with 7,868,531 workers, making an average number of 
 workers per employer of 11; while 45 agricultural em- 
 ployers' associations cover 5,434,000 employers with some 
 17,000,000 workers. Average number of workers per em- 
 ployer, 3. Several authorities have given it as their opin- 
 ion that more than 50 per cent of the w^age workers of 
 the country are employed in small places, w^here an ac- 
 cident verdict of from |5,000 to |10,000 would mean 
 bankruptcy to the employer, and, as a consequence, loss 
 of part or all compensation to the injured worker. 
 
 Our attention has been called to the fact that before 
 the inauguration of the present system even the cost and 
 worry of law suits for accident compensation proved dis- 
 turbing, and oftentimes destroying, factors to the small 
 employer. Destruction of the small employer usually 
 means no compensation for the injured worker, leaving 
 him and his dependents charges upon the community. For 
 this reason, the German system does not place the bur- 
 den of compensation upon the individual employer. It 
 places it upon the industry, that is, upon all employers 
 of each industry. For illustration: All the flour mills 
 of Germany must contribute toward a fund, out of which 
 is paid a fixed compensation for each flour mill accident. 
 The oriGjinators of the German s^^stem reasoned that only 
 
VARIOUS FORMS OF INSURANCE 65 
 
 by universal and collective action could lasting beneficent Extended 
 
 ... 1 Ti ^ -, Collective 
 
 results be secured. It would not do to cover only certain Action most 
 
 . -, , . i . , ,. . Beneficial 
 
 industries or certain localities. The system must cover 
 practically every employer and every wage worker in 
 every part of the country, and the individual financial 
 responsibility of the employer must be entirely eliminated 
 from the system. 
 
 This, of course, means compulsory insurance. Under 
 the German law every employer must belong to the organi- 
 zation of his craft, and to these employers' associations 
 is given the necessary legal power to raise funds based 
 upon the hazard of the industry, as well as the prevention 
 efforts of each particular shop. Assessments are made by 
 carefully trained scientific boards of experts, much the 
 same as in our mutual fire insurance companies. 
 
 Many countries have adopted the compulsory insur- Growth of 
 
 Compulsory 
 
 ance plan, as may be seen at a glance from Figure 3, insurance 
 page 13. The sentiment in favor of such a system is 
 spreading rapidly. Most countries give the employer the 
 privilege of insuring either in mutual companies, stock 
 companies or state institutions. Germany and Austria 
 compel insurance in mutual concerns. Experts in these 
 countries have told us that no other compensation insur- 
 ance would work satisfactorily. We are by no means 
 going to this extreme, but we feel that the better in- . 
 formed an employer is on compensation insurance de- 
 tails, the better will be the result. Close co-operation 
 must exist between insurance companies and employers' 
 associations, so that the experience of practical employers 
 
G6 ACCIDENT ^PHEVENTlON AND RELIEF 
 
 will T3e'at the disposal of insurance concerns, and vice 
 versa. Only in tbis way can prevention efforts of each 
 insured employer bear the greatest possible weight upon 
 insurance rates and the experience of the best preven- 
 tion experts be placed at the disposal of the insured at 
 all time's.* - • 
 
 It is not enough to appeal to the motives of humanity 
 among employers. They must see that it is a business 
 proposition for them to iriVest in safety appliances. 
 Co-operative Mutual Compensation iiisurance by industries might 
 
 Insurance ■ .. . . 
 
 Decreases be fouiid as advautageous as is mutual fire insurance 
 
 Cost 
 
 by industries. Most of us know that the rates of fire 
 insurance have been reduced as much as 75 per cent in 
 some establishments by the adoption of the mutual prin- 
 ciple and the selection of risks. That a similar showing 
 can be made in accident insurance is proven. As an il- 
 lustration : Commercial travelers were considered a haz- 
 ardous risk years ago, and had to pay |25 to $35 annual 
 premiums for accident insurance. By establishing com- 
 mercial travelers' mutual insurance this premium rate 
 has been reduced to an average of |7.74 per year for 
 twenty-seven years. However, it would be a most serious 
 mistake for us to endorse mutual accident compensation 
 insurance in too broad a way. 
 
 Compensation insurance will have a hard period before 
 
 it can come down to equitable standard rates. Competi- 
 
 .^ tion is going to play havoc with insurance rates, just as it 
 
 has in England, and unscrupulous promoters are going 
 
 to take advantage of the fact that a final accounting in 
 
VARIOUS FORMS OF INSURANCE 6.7 
 
 accident insurance cannot be brought about in less than strict ipsur- 
 fifty years. That is such a long time that the promoters cios^, scrutiny 
 
 by Employers 
 
 can. make money and get out, leaving the insured ^em- Requisite ,;., 
 ployers and workers to hold the bag. The sti^ictest kind 
 of insurance laws and the closest kind of scrutiny on 
 the part of employers will only lessen, it will not elimi- 
 nate, this danger. 
 
 . The establishment of mutual fire insurance has stimu- 
 lated the fire insurance business, and the .establishment 
 of mutual compensation insurance will stimulate com- 
 pensation insurance business in a similar way. As long 
 as the end is assured the employer should be given all 
 possible freedom in selecting his insurance.- -The-^success 
 of a system and the interest of all concerned, demand that 
 every method which can be provided for compensation 
 shall definitely assure the compensation to the injured 
 worker when it becomes due. 
 
 ^r: statistics 
 Scientific prevention and insurance are impossible Necessity 
 
 ^ of Accurate 
 
 without accurate statistics. We have discussed this, and statistics 
 also the lack of such statistics in the United States, but 
 we want to call attention to the fact that almost any sort 
 of information can be gathered from the German statistical 
 tables. Efforts to increase efficiency or reduce risks and 
 to base the rate of cotitribution upon the exact ratio of 
 risk, are constantly made by trained experts. The fol- 
 lowing figures indicate this tendency. 
 
Industrial 
 Accidents 
 According to 
 Days and 
 Hours 
 
 68 ACCIDENT PREVENTION AND RELIEF 
 
 Figure 19 points out the frequency of industrial ac- 
 cidents according to days and hours. Please note that be- 
 tween the hours of 9 A. M. and 12 M. and 3 and 6 P. M. 
 there are the greatest number of accidents, also that more 
 accidents occur on Monday and Saturday than on any 
 other week day. If we give credit to the general belief 
 that the great percentage on Saturday is due to the 
 fatigue of the workers, we may also be compelled to infer 
 that a similar fatigue exists among workers on Monday 
 morning. 
 
 FIGURE J9 
 
 FREQUENCY OF INDUSTRIAL ACCIDENTS ACCORDING 
 TO DAYS AND HOURS. 
 
 HOURS 1 3 6 9 12 15 18 21 24 27 30 I 
 
 A.M. 
 P.M. 
 
 [12 3 ■ 
 
 1 
 
 
 
 
 
 
 
 
 
 3 6 I 
 
 _ _ _ 
 
 
 
 
 
 
 
 
 
 9 ■■■■■ 
 
 
 
 
 
 
 
 [ 9 12 ■ 
 
 ■| 
 
 
 
 [12 3 ■ 
 
 
 1 
 
 
 
 3 el 
 
 ^^^1 
 
 
 
 
 d ^^P 
 
 
 
 
 
 
 
 9 12 mVT 
 
 
 1 
 
 
 
 
 
 DAYS 12 4 6 8 10 12 14 16 18 20 
 
 SUNDAY ■ 
 
 1 J 
 
 1 
 
 
 
 
 
 MONDAY P 
 
 ^^^^ 
 
 ^^^^ 
 
 1 
 
 r 
 
 
 
 
 TUESDAY B 
 
 
 
 
 WEDNESDAY ■ 
 THURSDAY ■ 
 FRIDAY ■ 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 SATURDAY ■ 
 
 
 ■ 
 
 ■ 
 
 ■ 
 
 ■ 
 
 ■ 
 
 m 
 
 
 
VARIOUS FORMS OF INSURANCE 
 
 69 
 
 Figure 20 indicates the frequency of industrial acci- industrial 
 dents according to age and sex. Please note in this and Accotd?ng to 
 the following diagram the increased hazard in all occu- 
 pations due to age. Several countries have had sad ex- 
 periences in barring older men from employment on ac- 
 count of their greater liability to accidental injury. 
 Under the German system there is no such disadvantage, 
 and we should see to it that there is none in our country. 
 Another lesson pointed out in this chart is the low rate 
 of accidents to women workers as compared with men in 
 the industries. 
 
 FIGURE 20 
 FREQUENCY OF ACCIDENTS ACCORDING TO AGE AND SEX 
 
 PER 1000 
 
 17 
 
 UNDER 
 16 
 
 16 
 
 Ifl 
 20 
 
 20 
 30 
 
 30 
 40 
 
 4o 
 50 
 
 50 
 60 
 
 60 
 70 
 
 OVER 
 
 70 
 
 PfR 1000 
 
 17 
 
 lA 
 
 
 
 
 
 
 
 
 i 
 
 
 16 
 
 15 
 
 
 
 
 
 
 
 
 .^^ 
 
 
 IS 
 
 
 
 
 
 
 
 
 X 
 
 nfS 
 
 «S 
 
 
 
 14 
 
 
 
 
 
 
 
 i 
 
 <A 
 
 •*■ 
 
 
 
 
 13 
 
 12 
 
 
 
 
 
 
 r 
 
 r 
 
 
 
 
 1? 
 
 II 
 
 
 
 
 
 
 // 
 
 
 
 
 
 ii 
 
 10 
 
 
 
 
 
 
 (/ 
 
 
 
 
 
 10 
 
 9 
 
 
 
 
 
 '*J 
 
 7 
 
 
 
 
 
 9 
 
 A 
 
 
 
 
 
 W 
 
 
 
 
 
 
 A 
 
 7 
 
 
 
 
 
 Mr 
 
 
 
 
 
 
 7 
 
 6 
 
 
 
 
 " 
 
 ff 
 
 
 
 
 
 
 £ 
 
 s 
 
 
 
 
 V^ 
 
 f 
 
 
 
 
 
 
 5 
 
 A 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 4 
 
 5 
 
 
 .^ 
 
 ^ 
 
 'f— 
 
 
 
 
 .^ 
 
 >!.. 
 
 
 
 
 3 
 
 2 
 
 
 ^ 
 
 
 
 . ^nM 
 
 LH.,»«* 
 
 %•*• 
 
 '«# 
 
 '•*.. 
 
 
 2 
 
 1 
 
 
 
 
 
 
 ^M..^* 
 
 ?»••' 
 
 
 
 s 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Industrial workers. 
 
Agricultural 
 Accidents 
 Accordingr to 
 Age and Sex 
 
 70 ACCIDENT PREVENTION AND RELIEF 
 
 Figure 21 pictures tlie frequency of agricultural acci- 
 dents accordin<^ to age and sex. Please note that the 
 rate of accidents to women workers is higher here than 
 the rate of accidents to men, illustrating the fact that 
 accident compensation, insurance and prevention have as 
 large a field on the farm as in the industries. 
 
 FIGURE 2t 
 FREQUENCY OF ACCIDENTS ACCORDING TO AGE 
 AND SEX 
 
 PER 1000 
 17 
 
 UNDER 
 16 
 
 18 
 
 18 
 20 
 
 20 
 30 
 
 30 
 40 
 
 46 
 
 50 
 
 5b 
 
 60 
 
 60 
 70 
 
 OVER 
 70 
 
 PER 1000 
 
 \f, 
 
 
 
 
 
 
 
 
 
 
 
 m 
 
 15 
 
 
 
 
 
 
 
 
 
 
 
 15 
 
 14 
 
 
 
 
 
 
 
 
 
 
 
 14 
 
 i:^ 
 
 
 
 
 
 
 
 
 
 
 
 17. 
 
 \7 
 
 
 
 
 
 
 
 
 
 
 
 12 
 
 II 
 
 
 
 
 
 
 
 
 
 
 
 II 
 
 m 
 
 
 
 
 
 
 
 
 
 J 
 
 V 
 
 
 10 
 
 9 
 
 
 
 
 
 
 
 
 ^ 
 
 X 
 
 ^ 
 
 I 
 
 9 
 
 8- 
 
 
 1 
 
 
 
 
 ' 
 
 .4^ 
 
 Y 
 
 
 
 ft 
 
 7 
 
 
 
 
 
 
 
 '^ 
 
 y 
 
 f 
 
 
 
 7 
 
 g 
 
 
 
 
 
 
 A 
 
 
 
 
 
 f^ 
 
 5 
 
 
 
 
 
 
 ^ 
 
 r 
 
 
 
 
 5 
 
 4 
 
 
 
 
 
 J 
 
 
 
 
 
 
 4 
 
 3 
 
 
 ^ 
 
 
 
 
 ^ 
 
 r 
 
 
 
 
 
 3 
 
 2 
 
 
 :t 
 
 2^ 
 
 voqMciS 
 
 ^ 
 
 
 
 
 ' 
 
 
 , 
 
 
 2 
 
 1 
 
 • 
 
 
 ..... 
 
 TTr 
 
 ... 
 
 ■%»•' 
 
 
 
 
 , 
 
 
 
 1 
 
 
 
 i 
 
 
 
 
 '■■ 
 
 
 
 
 
 Agricultural workers. 
 
 Comparison of 
 Industrial and 
 Agricultural 
 Accidents 
 
 Figure 22 compares frequency of accidents according 
 to days of the week for industrial: and agricultural work- 
 ers. Please n^^ that farmery areisuffering from the same 
 fatigue which characterizes the industrial workers on 
 Saturday and Monday. 
 
VARIOUS FORMS OF INSURANCE 
 
 71 
 
 FIGURE 22 
 
 FREQUENCY OF ACCIDENTS ACCORDING TO DAYS 
 OF THE WEEK 
 
 PROPOR 
 TION 
 
 SUNDAY 
 
 MONDAY 
 
 TUESDAY WEDNESDAY THURSDAY 
 
 FRIDAY 
 
 SATURDAY 
 
 PROPOR- 
 TION 
 
 1,2 
 
 
 A^ — 
 
 ^Oi^x-i-,^ 
 
 
 
 
 
 •2 
 
 IJ 
 
 
 1 
 
 "^^^ 
 
 ^liijjj^ 
 
 I WORr^E 
 
 s?- 
 
 
 ^^ 
 
 
 1 J 
 
 1.0 
 
 
 1 
 
 
 
 ^^Tftft^^ 
 
 
 -(^''^ 
 
 
 1,0 
 
 0,9 
 
 
 1 
 
 
 ^'CULTUR, 
 
 kU"**^*^ 
 
 
 
 
 0,Q 
 
 o.a 
 
 
 1 
 
 
 
 
 
 
 
 0,8 
 
 07 
 
 
 11 
 
 
 
 
 
 
 
 0,7 
 
 0,6 
 
 
 1 
 
 
 
 
 
 
 
 0.6 
 
 0,5 
 
 
 1 
 
 
 
 
 
 
 
 0,5 
 
 0,4 
 
 
 // 
 
 
 
 
 
 
 
 0,4 
 
 0,.^ 
 
 r/ 
 
 
 
 
 
 
 
 0,.-^ 
 
 0,? 
 
 
 / 
 
 
 
 
 
 
 
 0? 
 
 OJ 
 
 
 f 
 
 
 
 
 
 
 
 OJ 
 
 Comparison of industrial and agricultural workers. 
 
 Scientific Inspection 
 A scientific but practical inspection systeni is prob- scientific 
 
 _ Factory 
 
 ably one of the greatest requirements for a proper, soln- inspection 
 
 „ . _ , . , . an Essential 
 
 tion of this problem. A thorough factory inspection 
 system is a very important part of the German accident 
 prevention and insurance system. There are two kinds 
 of inspectors — government inspectors and employers' as- 
 sociation inspectors. The duty of the former is prin- 
 cipally to see that working conditions are in keeping 
 with the law, while the duty of the latter is chiefly to 
 see that those conditions conform to the regulations of 
 employers' associations. But a very important duty of two classes 
 
 ^ "^ ' .of Factory 
 
 both classes of inspectors is to study working condi- inspectors 
 tions, determine hazards v^nd make suggestions to the 
 administration officers. To this end specialists of high 
 grade are employed principally by employers' associa- 
 
72 ACCIDENT PREVENTION AND RELIEF 
 
 tions, and in many cases these men devote their whole 
 lives to a study of the hazards of a particular industry. 
 It is the specialization and the certainty of remaining 
 in a chosen line regardless of political or administrative 
 changes which make the German inspection system so 
 efficient. New men entering this profession must start 
 with a thorough theoretical and practical education. 
 They must be graduates of engineering colleges, and are 
 often placed in subordinate positions with little pay for 
 years, before they are promoted to posts of real respon- 
 sibility. There is no connection between state or national 
 politics and appointments of this kind. 
 
 The following concise statement bearing on this sub- 
 ject was prepared for us by Dr. Konrad Hartmann, Pro- 
 fessor of Preventive Engineering and the highest govern- 
 ment authority on such subjects in Germany: 
 
 "All factories in the German Empire are inspect- 
 ed both by officials of the State Boards of Inspection 
 and by experts in the employ of the employers' as- 
 sociation. 
 Duties of "The State Boards of Industrial Inspection de- 
 
 inspTJtorT rive their authority from the governments of the 
 
 Federal states. Their principal function is the en- 
 forcement of the imperial laws governing industrial 
 affairs and of the special rules and regulations en- 
 acted by the Federal Council or the authorities gen- 
 erally for the protection of German workingmen. 
 These State Boards of Inspection deal principally 
 with the prevention of accidents; they inspect and 
 supervise steam boilers and plants requiring spe- 
 cial licenses, they investigate the working con- 
 
VARIOUS FORMS OF INSURANCE 73 
 
 ditions of women and children and look into ques- 
 tions affecting factory hygiene, night and Sunday 
 work, wages and hours of employment. 
 
 "The members of these State Boards of Inspection 
 are state officials. Before being appointed, they Educational 
 must attend technological institutes for three years for'^Gov^e^nment 
 and study law and national economy for another ^"^p*^^°^^ 
 year and a half. Two examinations are required of 
 them, one covering their knowledge of engineering 
 or chemistry, and the other one covering practical 
 experience of one and a half years' service to the 
 Board in a minor capacity. After passing these two 
 examinations, they become so-called ^industrial as- 
 sessors' and subsequently inspectors, to each of 
 whom is assigned a certain district. In the course 
 of time the inspector becomes what is called an in- 
 dustrial counsellor' and is then considered a gov- 
 ernment official. Last year the State Boards of In- 
 dustrial Inspection employed 488 inspectors, among 
 whom there were 29 female assistants. To this 
 number must be added 114 special mine inspectors. 
 Both the factory and mine inspectors render annual 
 reports which are published. 
 
 "The employers' associations are organized for 
 the purpose of operating (under the supervision of 
 the imperial government) the compulsory accident 
 insurance system to which all employers are subject 
 in Germany. These associations are authorized to 
 prescribe accident prevention measures for the 
 plants within their jurisdiction and to engage the 
 necessary inspectors for their enforcement. These 
 
74 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Requirements 
 for Employers' 
 Associations' 
 Inspectors 
 
 Excellence of 
 German 
 System 
 Due to 
 Efficient 
 Inspection , 
 
 inspectors must be trained engineers and, as a rule, 
 men with, a college or university education are 
 chosen. About 340 inspectors are employed by the 
 employers' associations at the present time. Agri- 
 culture has no adequate system of supervision or in- 
 spection as yet, but such a systenf will be estab- 
 lished in the next few years. Annual reports are 
 rendered by the experts of the employers' associa- 
 tions concerning their work. These reports are pub- 
 lished and contain a great deal of statistical and 
 other information concerning the science of acci- 
 dent prevention. 
 
 ^^This two-fold system of factory inspection has 
 so far caused no friction or abuses of any kind. This 
 for the reason that the large number of plants to be 
 inspected makes it impossible to visit any particular 
 concern more than once a year and the requirements 
 of the State Boards of Inspection and of the em- 
 ployers' associations are practically uniform." 
 As already mentioned, the efficiency of the inspection 
 department and the personnel thereof account in a large 
 measure for the high standard of the whole system, and 
 for the absolute reliability of statistical records. On this 
 point Mr. Frederick K. Hoffmann, statistical expert for 
 the Prudential Insurance Company in the United States, 
 is quoted as follows : 
 
 "I do not hesitate to say, without fear of contra- 
 diction, that a single report of a technical supervis- 
 ing official in any branch of the German industry 
 contains more matter of real determining and vital 
 importance than all the reports which have ever 
 
VARIOUS FORMS OF INSURANCE 75 
 
 been made under our inadequate system of factory 
 inspection." 
 
 We are confident that Mr. Hoffmann's statement is 
 not intended as a reflection upon individuals — no more so 
 than our argument. It is the system and not the men 
 that must be attacked and changed. 
 
 Litigation 
 
 The shortcomings of our present laws in antagonizing 
 harmonious relations between employers and workers are 
 too well known to need lengthy explanation. Every em- 
 ployer of experience is aware that in nine cases out of 
 ten any kind of settlement with an injured workman 
 under our present laws is unsatisfactory. It is more 
 or less a gamble. Tlie relations of employer and em- 
 ploye often are transformed into personal dislike, or 
 even hatred, during damage suits and this feeling leaves 
 a lastingly bad influence, sometimes through a whole 
 establishment. There is no gamble in the German Between 
 
 1 • 1 • 1 Employer 
 
 system, and even m controversies which arise regard- and Employe 
 
 . . . , , . Tender German 
 
 mg compensation the individual employer's interest is system 
 not opposed to that of his injured worker. In fact, 
 he is usually very much interested in seeing that his 
 worker receives a fair deal at the hands of his employers- 
 association. Let us point out the regular method which 
 is provided for detei'Uiining compensation. 
 
 The first step is the decision of a regular commission 
 consisting of members of au emplo;y'ers' association. 
 Every case of injurv lasting inore than 13 weeks must be 
 
76 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Compensation 
 for the First 
 13 Weeks 
 
 German 
 Mode of 
 Determining 
 Amount of 
 Compensation 
 
 referred promptly to these commissions. We have al- 
 ready explained that during the first 13 weeks the in- 
 jured person receives medical treatment and financial 
 and other benefits from the sickness insurance fund, 
 to the cost of which the employer pays 33 per cent and 
 the worker 66 per cent. The award is promptly trans- 
 mitted to the injured worker in writing on regular 
 blanks, which have printed on them in black type a notice 
 to the effect that if the award is not satisfactory to the 
 injured or his dependents it can be appealed within one 
 month, free of cost, to one of the regular arbitration 
 courts, which becomes the second step of the legal process. 
 These courts consist of a regularly appointed judge, who 
 has had special training for this class of work. He, with 
 tAvo employers elected by the employers of the district, 
 and two wage workers elected by the wage w^orkers of 
 the district, make a jury of five experts. The employers 
 and workers are taken from the industries in which the 
 accident has happened. In other words, for agricultural 
 accidents two employing farmers and two farm hands 
 serve with the judge, while in the machine trade two 
 machine manufacturers and two workers engaged in that 
 trade serve with the judge. A majority decision, that is, 
 three out of five votes, fixes the status of the appealed 
 case. 
 
 We attended two arbitration court sittings. The regu- 
 lar judge with his associate commissioners of employers 
 and wage workers tried from 20 to 22 appealed cases in 
 two and one-half to three hours. There was no hurry, 
 a remarkable absence of formality, a thoroughness and a 
 
VARIOUS FORMS OF INSURANCE 77 
 
 serious common-sense endeavor to get at the facts, which 
 made a much more favorable impression upon us than 
 the numerous damage cases which we have seen tried in 
 our courts. An experienced doctor was present to assist 
 the court in matters requiring medical knowledge. In 
 many cases a medical examination was made in the court 
 room. Both sides to a controversy have the privilege 
 of representation through counsel, but the authority of 
 the judge and of the jury is so great that practically no 
 advantage can be secured by introducing technical ques- 
 tions. The fact that the total litigation expenses amount 
 to only 1.2 per cent of the insurance premiums indi- 
 cates that the system is thoroughly efficient. This 
 amount, however, does not cover that part of the court 
 cost which is borne by the state. 
 
 The award of the arbitration court is transmitted to oniy 
 both sides, but in important matters this award can be (^^es ^" 
 appealed to a court of last resort, which is called a ^''^^pp®^® 
 "Senate." Such a Senate consists of a chairman, always 
 a jurist, appointed by the Imperial Insurance Depart- 
 ment, two technical experts of the same department, two 
 judges of regular courts and one employer and one em- 
 ploye, a total of seven men. There is no appeal from the 
 decision of this court, but in case two such Senates 
 render decisions which seem to establish different prece- 
 dents, there is a provision for an enlarged Senate, or two 
 Senates meet jointly and can overrule either one or both 
 decisions. 
 
 The time required from the first decision to final rul- 
 ing is said to be never more than a year, and more often 
 
78 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 only from four Aveeks to four months. During the period 
 pending final decision part compensation is paid in all 
 deserving cases. That the compensation awards are 
 reasonably just is evident from the comparatively low 
 percentage of changed decisions, as shown in Figure 23. 
 In .every one of the 42 cases which we ^aw transacted 
 the decision of the five men was unanimous. 
 
 FIGURE 23 
 DISPUTED COMPENSATION CLAIMS 
 
 422,076 £J^^^^^^^|J^^^^^^^^gy^^^^r^>^s-j^g^ 
 
 Ji 104,298 APPEALS BY EMPLOYEES TO ARBITRA- ^ - „ « 
 ^^__^^^|J TION COURT _24.7 % 
 
 9 83,781 APPEALS DECIDED IN FAVOR OF EMPLOYERS tr\nrG 
 jgggM BY ARBITRATION COURT IS.Oj/o 
 
 20,517 APPEALS DECIDED IN FAVOR OF EMPLOYEES BY ARBI- j, ^ro 
 TRATION COURT T.OD>& 
 
 19,634 SECOND APPEALS TO SENATE (COURT OF LAST RESORT) m rAO 
 
 BY EMPLOYEES _ _ _ T'-UT'S 
 
 5,600 SECOND APPEALS TO SENATE (COURT OF LAST RESORT) BY looo 
 
 EMPLOYERS \.6l.^ 
 
 14,701 CONFIRMATIONS OF ARBITRATION COURT BY SENATE J AR^ 
 
 5,066 DECISIONS OF ARBITRATION COURT CHANGED BY SENATE 12^ 
 
 TOTAL CHANGES BY ARBITRATION COURT AND SENATE FROM EM- A.Ci <^ 
 PLOYERS' ASSOCIATIONS' VERDICTS I.'-' 'O 
 
 German 
 Arbitration 
 Courts 
 Fair and 
 Impartial 
 
 A. feature which struck us very forcibly in watching 
 the work of the German arbitration courts was the fact 
 that in several cases small emplo^^ers appeared in behalf 
 of their workmen, endeavoring to secure the highest rate 
 of compensation consistent with justice. However, in 
 each case the employer's argument seemed to avail noth- 
 ing before the fair and impartial court. While the result 
 ^as not in the ' slightest degree influenced by the em- 
 
VARIOUS FORMS OF INSURANCE 79 
 
 ployer-s friendly feeling toward his injured workman, it 
 was a decided contrast to the usual attitude of employer 
 and worker before our courts in damage suits. 
 
 The imi^ortance of single liability is recognized in importance of 
 
 Single 
 
 Germany. While it is possible to sue an employer for Liability 
 heavier damages than those awarded under the automatic 
 compensation act in cases of criminal carelessness, such 
 suits are unknoAvn. Neither in insurance rates nor in 
 any other phase of the insurance system is any other 
 obligation considered than that established under the 
 Compensation Act. 
 
CHAPTER FIVE 
 
 Hazardous Occupations — Comparative Hazard or 
 Industry and Farm 
 
Necessary 
 
 CHAPTER V 
 
 Hazardous Occupations — Comparative Hazard of 
 Industry and Farm 
 
 Statistical records compel a readjustment of our con- a New 
 ventional notions as to the comparative hazard of vari- S Ha'JTrds'''* 
 ous employments. A number of our states have expressed 
 in their laws, or contemplated laws, the opinion that there 
 are among the regular trades certain very dangerous ones, 
 and that if these trades are covered by obligatory com- 
 pensation for accidents, the problem will be nearly settled. 
 We have heard this sentiment expressed very strongly by 
 some of the framers of the New York law. The building 
 trades, for illustration, are classed in this category in 
 the state of New York. We have had five charts prepared 
 from the statistics of the German empire, which tell a 
 surprising story. 
 
 PMgure 24 analyzes the total number of accidents. 
 
 Figure 25 shows the comparative number of total and 
 permanent disability cases. 
 
 Figure 26 analyzes all cases of permanent and com- 
 plete disability. 
 
 Figure 27 deals with partial permanent disability. 
 
 Figure 2S analyzes temporary disability. 
 
 83 
 
84 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 o 
 
 
 > Oi 
 
 
 H H 
 
 
 t-l )7 
 
 l-H W 
 
 
 M Q 
 
 
 < n 
 
 
 00 O 
 
 
 t-H O 
 
 
 Q < 
 
 
 W h4 
 
 
 H < 
 
 N© 
 
 W 2 
 
 <N| 
 
 j;^ o 
 
 (xl 
 
 PU ^ 
 
 P^ 
 
 n 
 
 \D 
 
 O 
 
 ^ 
 
 i"o 
 
 
 r >* 
 
 
 H m 
 
 
 ^z: 
 
 
 H P 
 
 
 ^ w 
 
 
 < c« 
 
 
 S ^ 
 
 
 S < 
 
 
 w '^ 
 
 
 PU 
 
HAZARDOUS OCCUPATIONS 
 
 85 
 
 FIGURE 28 
 
 TEMPORARY DISABILITY CAUSED BY OCCUPATIONAL 
 ACCIDENTS IN J908 
 
 50% 
 
 All these data are based upon statistics for the year 
 1908, which do not materially differ from former years 
 except that they show a reduction in the proportion of farm 
 accidents to those of other occupations. 
 
 After studying these charts it would seem of little The Farmer 
 
 a Factor in 
 
 use to construct laws or adopt systems which do not cover ah Accident 
 the farmer. He stands first on each of the five charts ^^ ^^^ 
 
86 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Comparison of 
 Accidents in 
 Agricultural 
 and Building 
 Industries 
 
 charged with 43.5 per cent of the total number of in- 
 jured; 30 per cent of the total number of dead; 32.5 per 
 cent of the total number of permanently completely in- 
 capacitated; 45 per cent of the total number of perma- 
 nently partly incapacitated and 45 per cent of those 
 temporarily incapacitated. 
 
 Compare this with the building industry which contrib- 
 utes 7.5 per cent, 8.5 per cent, 5.5 per cent, 6 per 
 cent and 9 per cent, respectively^, of the various degrees 
 of injur}^ and it becomes evident that accident prevention, 
 compensation and insurance has as large a field on the 
 farm as it has in the industries. We do not want to be 
 understood as asserting that there are more injuries per 
 thousand among farm workers than there are in the more 
 hazardous industrial callings, but even here the farmer 
 shows up fairly high, as is evident from a study of Figure 
 1 (frontispiece). This chart, entitled "Frequency and Re- 
 sults of Accidents," is a translated reproduction of one of 
 the most important official ta])les of the Imperial Insurance 
 Department. It is well worth very careful study. Prof. 
 Dr. Manes places the number of injured farmers per 
 thousand insured at a lower figure than is shown in this 
 official table, but the importance of covering farm workers 
 is not lessened, even if the rate per thousand is reduced 
 by one-half. To safeguard the greatest number of hu- 
 man beings and to compensate the greatest number of in- 
 jured Avorkers must be the basis for action, and a system 
 which excludes 43.5 per cent of all injured workers can- 
 not be called just or progressive. 
 
HAZARDOUS OCCUPATIONS 87 
 
 The importance of covering the farm workers is fur- Agricultural 
 
 Hazard must 
 
 ther evidenced by a study of records of former years. At be considered 
 the beginning of the accident insurance period in Ger- 
 many the same erroneous impression existed there as to 
 the relative hazard of industrial and agricultural work 
 which now exists in this country. Statistical records for 
 a few years brought a change in Germany, as is shown 
 by the following statement from the official insurance 
 record of tlie year 1902: 
 
 "It Avas formerly believed that agricultural pur- 
 suits were comparatively free from accidental in- 
 2^vj. The enforcement of the compensation law of 
 1886 has proven this vicAV erroneous. The statistics 
 for 1901 show that the 48 agricultural employers' 
 associations of Germany during this one year have 
 had to compensate 50,039 injured workers, Avhich is 
 540 more than are charged against the 65 industrial 
 employers' associations for the same period.'' 
 What German statistics have proven regarding the 
 hazards of farming every other country which has given 
 this subject attention, has found to be correct only it is 
 more difficult to prove elsewhere because of lack of reli- 
 able information. 
 
 Germany was not slow to call attention to farm ac- Decrease in 
 
 Farm 
 
 cident statistics, as may be seen from the following illus- Accidents in 
 
 Germany 
 
 trations and figures copied from official German records. 
 Tlie result is a decrease in the number of farm casualties 
 from more than 50 per cent of the total casualties of the 
 empire in 1902 to 43.5 per cent in 1908. 
 
88 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 FIGURE 29 
 
 All dangerous parts of apparatus and all safety devices are painted red 
 to attract workers' special attention. 
 
 FIGURE 30 
 
 14,945 accidents, including 632 deaths, among farm workers are caused by 
 fallfi from ladders, out of haylofts, etc., during one year. 
 
HAZARDOUS OCCUPATIONS 
 
 89 
 
 FIGURE 3J 
 
 Dangerous animals must be guarded. 
 
 FIGURE 32 
 
 19,148 injuries, including 1,180 deaths, among fai-m workers are caused 
 by animal bites and kicks during one year. 
 
90 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 FIGURE 33 
 
 Farm wagons must be equipped with safety appliances. 
 Agricultural teaming is responsible for 10,480 accidents in one year. 
 
 FIGURE 34 
 
 Illustration to the left shows the safe loading of timber. 
 
 Illustration to the right shows the proper method of fastening logs 
 during hauling, and calls attention to proper condition of brakes for lumber 
 wagons. 
 
 5,718 accidents among farm workers are caused in one year while cutting 
 and hauling timber. 
 
HAZARDOUS OCCUPATIONS^^ 
 
 ^^^^ 
 
 FIGURE 35 
 
 Feed cutting machine without and with safety guards. 
 ],777 accidents, including 17 deaths, caused by feed cutting machines in 
 one year. 
 
 FIGURE 36 
 
 Threshing machine without and with safety devices. 
 
 Threshing machines are responsible for 1,296 accidents (44 deaths) in 
 one year. 
 
9^2^:^ 
 
 A<X^Ii)^ENT PREVENTION AND RELIEF 
 
 FIGURE 37 
 
 Farmers' horse power mills must be properly safeguarded. Responsible for 
 203 accidents in one year. 
 
 FIGURE 38 
 
 
 Farmers' power transmission machinery, without and with safety covering.. 
 
 FIGURE 39 
 
 Farmers' power transmission machinery is responsible for 353 accidents^ 
 including 39 deaths, in one year. 
 
HAZARDOUS OCCUPATIONS 
 
 93 
 
 FIGURE 40 
 
 Farmers' cider mill with and without safety covering for gears. 
 
 There is every reason to believe that the hazard of the Agricultural 
 farm as compared with the industries is even greater in Germany 
 the United States than it is in Germany. First, because ^Hl *^^" 
 there is more pioneer farming which is necessarily more 
 dangerous, and second, because the use of farm machin- 
 ery is much more extensive among farmers in the United 
 States than in European countries. 
 
 A recent statement of Mr. Walter Drew of New York, 
 on this subject is convincing and to the point. He says: 
 "And why should not agriculture be the most 
 dangerous of all employments? A farm worker 
 drives teams, uses explosives, handles machinery 
 of all sorts, both in and out of doors, acts as car- 
 penter, wood-cutter, painter, and as a general 'Jack 
 
Compensation 
 Measures 
 will Attract 
 Farm Labor 
 
 94 ACCIDENT PREVENTION AND RELIEF 
 
 of all trades.' His work and liis driving to mar- 
 ket take him across railroad tracks, in and around 
 cars, freight elevators, etc. There is scarcely a risk 
 applicable to any dangerous trade that does not 
 fall to him at one time or another, and added to 
 all this, and especially so far as tlie use of tools 
 and machinery is concerned, he is not specially 
 skilled or trained, and has to work in company 
 witli other men who are likewise more or less un- 
 skilled. 
 
 "Consumption of agricultural products in this 
 country has increased 60 per cent in the last ten 
 years, and production has increased but 30 per cent. 
 One of the most important of our present problems 
 is to encourage labor to seek the farm. Is there 
 any reason, in justice, why liability acts or com- 
 pensation measures should not protect the farm 
 worker, and is there not every reason, from the 
 standpoint of national industrial well-being, why 
 the farm worker should be equally protected with 
 other workers, and every possible objection to farm 
 work removed?" 
 
 A study of hazardous occupations would be incom- 
 plete without analyzing all occupations with the view of 
 learning the particular kinds of work which are respon- 
 sible for most accidents. 
 
 Figures 41 and 42, the one analyzing farm activities 
 and the other one industrial activities, are full of sur- 
 prises. Note that falls from ladders are by far the most 
 serious cause of accidents; they stand first in the farm 
 
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HAZARDOUS OCCUPATIONS 95 
 
 list, charged with 99 accidents per 100,000 insured comparative 
 
 statistics 
 
 workers, and second on the industrial list, charged with 
 143 accidents per 100,000 insured workers. Teaming, 
 loading and unloading, and machinery come next in im- 
 portance and steam boilers rank last on both lists. 
 
CHAPTER SIX 
 
 Prevention of Accidents — Cause and Cure of Injuries 
 
 European Safety Museums (Accident 
 
 Prevention Institutions) 
 
CHAPTER VI 
 
 Prevention of Accidents — Cause and Cure of Injuries 
 
 European Safety Museums (Accident 
 
 Prevention Institutions) 
 
 In line with the official declaration of the National importance of 
 
 Accident 
 
 Association of Manufacturers, Germany places prime im- Prevention 
 portance upon accident prevention. Very complete sta- 
 tistical figures kept for 25 years have intensified in- 
 terest in and action on this subject to such a degree that 
 it can well be called a national problem. For the recent 
 25th anniversary celebration commemorating the begin- 
 ning of workers' accident compensation insurance, five 
 splendid volumes, each of very liberal size, were devoted 
 to the subject of accident relief, and nine-tenths of all 
 dealt with prevention. One volume was prepared by the 
 Imperial Insurance Department, one by the industrial 
 employers' associations, another by the agricultural em- 
 ployers' associations, one by the Society of Prevention 
 Engineers, and one by the medical fraternity. 
 
 That from a humane viewpoint accident prevention 
 is not only desirable but absolutely necessary requires 
 no argument; that it pays as a business proposition can 
 
 99 
 
100 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Accident 
 Prevention 
 a Paying: 
 Investment 
 
 be demonstrated from German statistics. The transla- 
 tions of numerous letters from German employers, mostly 
 presidents of the organizations of their crafts, are quoted 
 in the Appendix. All agree that accident prevention is 
 a paying investment. From the letter of Dr. Kaufmann, 
 president of the German Insurance Departfiient, we quote : 
 ^The wisdom of giving employers' associations 
 all possible freedom of action becomes especially 
 evident in * * * accident prevention. * * ♦ 
 Recognizing that it is of prime importance to pre- 
 vent injury, since compensation will never replace 
 a father who has been killed or make up for lost 
 limbs, state officials and officers of emploj^ers' as- 
 sociations have concentrated their combined en- 
 ergies upon prevention, and wonderful have been 
 the results. Scientific accident prevention is now 
 recognized as a special and important branch of 
 technical engineering. 
 
 "Invention and prevention have gone hand in 
 hand in this work as advance agents of civilization. 
 * * * The workers' lives preserved mean main- 
 tenance and increase of our national resources and 
 give plentiful returns for the heavy financial bur- 
 dens which social insurance places upon our eco- 
 nomic structure." 
 Dr. Spiecker, president of the Siemens & Halske Com- 
 pany, and chairman of the League of German Employers' 
 Associations, which practically means the most import- 
 ant employer in Germany, writes us as follows : 
 
 "Twenty-five years have changed ^obligatory re- 
 sults' to ^voluntary performance.' Today every- 
 
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PREVENTION OF ACCIDEISI.XS , ..IjOl. . . 
 
 body who views the situation without prejudice changes 
 
 in the Past 
 
 must acknowledge, and does acknowledge, that the 25 years 
 task of the employers' associations in this field 
 (prevention and compensation) is a great blessing, 
 not only to the workers but to the industries and 
 the nation. It is perfectly evident today that we 
 have secured higher efficiency in our industries, due 
 to increased workers' efficiency, all brought about 
 b^^ relieving our workers from worries and distress 
 on account of sickness, injury, superannuation and 
 invalidity." 
 Under ^'Prevention" should be carefully considered 
 
 prompt and expert medical help, which has been discussed 
 
 in Chapter III. 
 
 A chart showing the growth of official expenditures in cost of 
 
 Accident 
 
 the direction of accident prevention during 25 years is Prevention 
 shown in Figure 43, but it must be understood that 
 the sum of |4,250,000 shown in this chart is only a very 
 small part, probably less than 10 per cent of the total 
 amount expended for prevention. It covers only super- 
 vision of the prevention system. There is no official record 
 of the many millions which have been expended by em- 
 ployers' associations and by individual employers for 
 accident prevention, but it is reasonable to believe that it 
 follows in a general way the lines of Figure 43. 
 
 The spirit which enters into this problem is best illus- 
 trated by the fact that in addition to the systematic work 
 carried on by the state, employers' associations and indi- 
 vidual employers, a large fund was raised a few years ago 
 by voluntary subscription among employers and the gen- 
 eral public for the special purpose of stimulating and 
 
, , J.0,2,, ,^,//a,ccid^j^t prevention and relief 
 
 promoting accident prevention through investigation, edu- 
 cation and invention. The occasion for the establishment 
 of this fund was the Silver Wedding of the German Em- 
 peror. He, with the best men of the nation, believes 
 that a monument of this sort is of greater lasting value 
 than marble or bronze. What a wonderful opportunity 
 exists in this direction for some of our American philan- 
 thropists ! 
 Progress It has bccu stated by men who are supposed to be more 
 
 not 
 
 Rapid or less familiar with conditions in our country that half 
 
 of our accidents are preventable. One would draw the 
 natural inference from such a statement that five or ten 
 years' systematic accident prevention will reduce the num- 
 ber of injuries 50, or at least 25 per cent. There is no 
 such favorable record in Germany after 25 years of 
 persistent effort. German experts tell us that it requires 
 from 10 to 15 years to get a fair start, that it takes 
 that many years to stop the natural tendency toward in- 
 crease in percentage of accidents. Germany's statistical 
 record can best be consulted on this point hj separating 
 the agricultural employers' associations from the indus- 
 tries. Agricultural records, which for many reasons are 
 not in as good form for detailed research as are industrial 
 records, show 16 per cent improvement in percentage of 
 accidents in 10 years. For the first 15 years the number 
 rose constantly. 
 
 Industrial employers' associations have very complete 
 and exact records, which prove that the machine hazard 
 (the number of accidental injuries caused by machines), 
 which are most susceptible to prevention efforts, have been 
 
PREVENTION OF ACCIDENTS 
 
 103 
 
 checked very materially, while the total hazards of indus- 
 tries have increased rapidly. 
 
 An analysis of 25 years' records of various industries changes m 
 
 ,,,,_, ^ . „ . Proportion of 
 
 was made by the German Society of Prevention Eno^ineers Accident 
 recently, from which we print a few charts in the follow- Past 25 Years 
 ing pages. German engineers point out that safety ap- 
 pliances cannot be made which will prevent human reck- 
 lessness or carelessness. 
 
 FIGURE 44 
 
 TWENTY-ONE YEARS' ACCIDENT PREVENTION HISTORY 
 FOR ALL GERMAN INDUSTRIES COMBINED 
 
 ^■; 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 8 
 7.5 
 
 7 
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 1887 eS 69 90 91 92 93 94 95 96 
 
 Number of injured workers per one thousand insured workers. 
 
104 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 FIGURE 45 
 
 TWENTY-ONE YEARS' ACCIDENT PREVENTION HISTORY 
 IN THE CHEMICAL INDUSTRY 
 
 95^ 
 9 
 
 b.5 
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 68.89 90 91 92 93 94 55 96 97 98 'i'i 1900 01 02 03 04 05 06.07 Oft 
 
 Number of injured workers per thousand insured. 
 
FIGURE 46 
 
 TWENTY-ONE YEARS' ACCIDENT PREVENTION HISTORY 
 IN THE MINING INDUSTRY 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 
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 1887 86 09 90 91 92 93 94 95 96 97 96 99 1900 01 02 03 04 0.5 06 07 06 
 
 Number of injured miners per thousand insured. 
 
 105 
 
106 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 FIGURE 47 
 
 TWENTY-ONE YEARS' ACCIDENT PREVENTION HISTORY 
 IN THE IRON AND STEEL INDUSTRY 
 
 159- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 1887 88 89 90 91 92 93 94 95 96 9? 98 99 1900 01 02 03 04 05 06 07 08 
 Number of injured workers per thousand insured workers. 
 
PREVENTION OF ACCIDENTS 
 
 107 
 
 FIGURE 48 
 
 TWENTY-ONE YEARS' ACCIDENT PREVENTION HISTORY 
 IN THE GLASS, POTTERY AND BRICK INDUSTRIES 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 A 
 
 M 
 
 rs 
 
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 1987 86 89 90 91 92 91 94 95 96 97 98 99 1900 01 02 03 04 05 06 07 08 
 Number of injured workers per thousand insured workers. 
 
 A further analysis of accidents in the same industries, Further 
 
 Analysis 
 
 and taken from the same records, is shown in the following of Accidents 
 pages. Here the accidents are divided into four classes, 
 and the record of each class and for each year is shown 
 in these charts. The story told is practically the same in 
 all industries, namely: 
 
 1. The death line due to accidents has either remained 
 .stationary or has actually decreased. 
 
 2. The total and permanent disability line has ma- 
 terially decreased. 
 
 3. Partial permanent disability, while increasing rap- 
 idly up to the year 1894, remained steady up to 1900 and 
 constantly decreased since then. 
 
 4. Temporary disability due to accidents has con- 
 tinually and rapidly increased. 
 
108 
 
 ACCIDENT PREVENTION AND RELIEF 
 FIGURE 49 
 
 RESULTS OF TWENTY-ONE YEARS' ACCIDENT PREVEN- 
 TION FOR ALL INDUSTRIES COMBINED 
 
 5L 
 
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 3 
 
 25 
 
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 All carves express disabled workers per one thousand insured, 
 
 FIGURE 50 
 
 RESULTS OF TWENTY-ONE YEARS' ACCIDENT PKEVEN- 
 TION FOR THE CHEMICAL INDUSTRY 
 
 1887 68 89 90 91 ofi 93 94 95 % q-j 93 99 WOO 01 02 03 (H 05 06 07 05 
 All curves express disabled workers per one thousand insured. 
 
PREVENTION OF ACCIDENTS 
 FIGURE 5J 
 
 109 
 
 RESULTS OF TWENTY-ONE YEARS' ACCIDENT PREVEN- 
 
 TION FOR THE GLASS, POTTERY AND 
 
 BRICK INDUSTRIES 
 
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 f\ 
 
 
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 rma 
 
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 1887 88 89 90 91 9^ 95 94 95 96 97 98 99 1900 01 02 05 04 05 06 07 Od 
 
 All curves express disabled workers per one thousand insured. • 
 
 FIGURE 52 
 
 RESULTS OF TWENTY-ONE YEARS* ACCIDENT PREVEN- 
 TION FOR THE IRON AND STEEL INDUSTRIES 
 
 iaB7 68 K 
 
 All 
 
 . 90 91 92 93 94 95 96 97 98 99 1900 01 02 03 04 05 06 07 08 
 curves express disabled workers per one thousand insured. 
 
110 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 FIGURE 53 
 
 RESULTS OF TWENTY-ONE YEARS' ACCIDENT PREVEN- 
 TION FOR THE MINING INDUSTRY 
 
 Preventive 
 Measures 
 Necessary to 
 Check Accident 
 Increase 
 
 6* 
 
 6 
 
 75 
 
 7 
 
 6:> 
 
 6 
 
 i5 
 
 5 
 
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 I6f7 66 89 90 91 92. 93 94 95 96 97 98 99 1900 01 02 03 04 05 06 07 OB 
 
 All curves express disabled miners per one thousand insured. 
 
 Lengthy discussions with German authorities and a 
 thorough study of the work just published by the Society 
 of Prevention Engineers, which we have before mentioned^ 
 bring out these additional thoughts on the subject : 
 
 1. Without strenuous prevention efforts industrial ac- 
 cidents grow at a tremendous rate. It is not fair to 
 stop at counting the actual decrease, we must also count 
 the probable large increase which would have taken place 
 without prevention efforts. 
 
 2. More and more slight accidents are reported each 
 year. Every effort of the government and of employers' 
 associations is directed toward prompt reporting of all 
 
PREVENTION OF ACCIDENTS 
 
 111 
 
 FIGURE 54 
 
 RESULTS OF TWENTY YEARS^ ACCIDENT PREVENTION 
 (MINE EMPLOYERS' ASSOCIATION) 
 
 1885-86 
 
 1905 
 
 Hi 
 
 2265Accid2nts 10068 Accidents 
 
 No. Per cent No. Per cent 
 
 1885-6 1905 
 
 Killed 873 38.5-1 1235 12.27 
 
 Permanently, completely disabled 89 3.93 02 .61 
 
 Permanently, partially disabled 543 23.97 3916 38.90 
 
 Temporarily disabled 760 33.56 4855 48.22 
 
 accidents. There are penalties provided for violation slight 
 
 Injuries 
 
 of this rule and it is, therefore, not surprising that Formerly 
 
 Unnoticed 
 
 workers report slight injuries now which years ago were Are now 
 
 Reported 
 
 left entirelj^ unnoticed. In view of this, the increase in 
 number of reported accidents does not necessarily mean 
 an increase in actual accidents. 
 
112 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Scarcity of 
 Help a 
 Source of 
 Accident 
 Increase 
 
 Accident 
 Prevention 
 As a 
 Business 
 Proposition 
 
 3. German industries have developed wonderfully, and 
 the necessity of employing constantly increasing num- 
 bers of "green hands'' on machines in order to keep "sup- 
 ply'' up to "demand" has made necessary the recruiting 
 of workers from among foreigners, who do not speak the 
 language of the country, cannot understanci orders or read 
 prevention rules. 
 
 All of which points to this conclusion. Accident pre- 
 vention is not only possible, it is absolutely necessary, but 
 it is a slow process. Whosoever approaches it with the 
 belief that the problem can be solved in the United States 
 in a few years, or without a systematic, intelligent, na- 
 tional movement which must have the co-operation of all 
 interested forces and especially the full backing of pro- 
 gressive legislators and employers, is over-confident, to say 
 the least. 
 
 That accident prevention pays, as a business proposi- 
 tion, is illustrated in Figures 55, 56, 57 and 58. We have 
 taken as an object lesson the wood-working industry, not 
 because it is more dangerous than many others, but because 
 the actual cases brought to our notice happened to be 
 esx)ecially impressive. 
 
 Figure 55 shows an old type square cutter head for 
 wood planers. It revolves at high speed and its square 
 form permits the hand of the operator to enter the slot, 
 which means almost certain amputation of some fingers 
 and this in turn means, of course, a pension for life. 
 
 The round cutter head, shown in Figure 57, was in- 
 vented to do away with the many serious accidents to 
 operators. It can be put in the place of the square cutter 
 head at a few hundred dollars expense. 
 
FIGURES 55, 56, 57 and 58 
 
 Old type square cutter head for wood planer. Very dangerous. Its use 
 now prohibited in Germany. 
 
 Injuries caused by square cutter head. Four cases like first illustration 
 to the left cost $15,000.00 in pensions. 
 
 Five cases like second illustration (one death due to blood poisoning) 
 cost $4,000.00 to date and $350.00 pension per year. 
 
 New type round cutter head for wood planer. ]Much safer in operation. 
 Saves 20 per cent in. insurance premiums. 
 
 Four hands which have come in contact with round cutter head. Note 
 small abrasions indicated bv black spots. If square cutter head had been used 
 all four hands would probably be crippled similar to those illustrated above. 
 
 113 
 
114 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 The following figures illustrate the method of applying 
 simple safety devices to machines. 
 
 FIGURE 59 
 
 Safety appliance attached to wood groover. 
 
 Illustration to left shows old method of operating machine which is very 
 dangerous and responsible for many lost fingers. 
 
 Illustration to right is made safe at small expense. 
 
 FIGURE 60 
 
 Circular saw (cross section) and band saw for woodworking shop, ar- 
 ranged with safety devices (red) for the protection of worker's limbs. 
 
PREVENTION OF ACCIDENTS 
 FIGURE 6J 
 
 115 
 
 Special safety Landle for planing short pieces of wood without danger 
 to operator's hands. 
 
 FIGURE 62 
 
 Emerywheels with protecting safety guards and wood planer with de- 
 vice which protects the worker's hands from contact with gears and re- 
 volving knives._ 
 
 FIGURE 63 
 
 Woodworking machine without and with safety device. A sheet iron 
 guard (red) encloses rapidly revolving cutters, preventing injury to at- 
 tendant. 
 
116 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 But let no one imagine that the most effective accident 
 prevention appliances are necessarily found on complicated 
 machines. Small pieces of rubber or lead fastened to the 
 ends of ladders to keep them from slipping, or sharp points 
 for the same purpose, are probably the most effective acci- 
 dent prevention devices in the countr3\ • 
 
 FIGURE 64 
 SAFETY FEET FOR LADDERS 
 
 I 
 
 
 Various forms of attaching rubber tips or sharp i^oints to ends of ladders 
 to keep them from slipping. 
 
 There is still mucli room for improvement, as is evident 
 from the fact that falls from ladders head the list of last 
 year's accidents. 
 
PREVENTION OF ACCIDENTS 
 
 117 
 
 FIGURE 65 
 LADDERS WITH SAFETY FEET 
 
 Indicating the security with which men can work on ladders equipped with 
 safety feet. 
 
 Some prevention devices are so simple tliat, much like a simple 
 
 Effectual 
 
 Topsy of old, they seem to have had no father or mother, cover for 
 but '^tliey just grew." We are much impressed with a openings 
 street cover which is used in Berlin wherever an opening 
 in the street or sidewalk needs a removable protection. 
 We have not found it anywhere else, and no one seems to 
 pay special attention to its existence. It was not exhibited 
 in any one of the safety museums we have visited, but any- 
 one who has watched the number of injuries caused to man 
 and beast on our city streets, due to slipping on iron 
 covers, would surely advocate the general adoption of this 
 cover, with the necessary modifications, in all American 
 cities. 
 
118 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 FIGURE 66 
 
 Many accidents to man and beast are caused by slipping- on smooth iron 
 covers on our city streets and sidewalks. 
 
 Illustration to the right shows a safety cover used throughout Berlin. 
 
 Exhibitions a 
 Strong 
 Pactor in 
 Accident 
 Prevention 
 
 Accident Prevention InMtutions 
 
 Strong factors in accident prevention on tlie Continent 
 are accident prevention institutions, or museums, tliat is, 
 permanent expositions, usually "working exhibits" of 
 safety appliances for tlie industries and the farm. The 
 oldest one of tliese institutions is in Amsterdam. It 
 is exceedingly 'interesting, but has not been kept up 
 to the high standard of newer institutions. We are told, 
 how^ever, that recently large sums of money have been 
 appropriated by the city and state for the erection of a 
 new building and for new equipment. 
 
PREVENTION OF ACCIDENTS 
 FIGURES 67 and 68 
 
 119 
 
 Interior views of old Vienna Accident Prevention Institution. 
 
120 
 
 ACCIDENT rKEVEXTION AND RELIEF 
 
 FIGURE 69 
 
 Exterior view of Berlin Safety Museum built and maintained at an 
 expense of more than a million dollars by the Imperial Government. 
 
 Prominent 
 Institutions 
 in Europe 
 
 Paris has a working exhibition of safety appliance^. 
 There is a good old institution of this kind in Vienna. A 
 new museum, for which the money is on hand, is being 
 built at great expense on a site opposite the imperial 
 palace. Budapest, Hungary; Milan, Italy; and Zurich^ 
 Switzerland, have accident prevention institutions, but the 
 two best institutions are located in Berlin and Munich, 
 Germany. 
 
PREVENTION OF ACCIDENTS 
 
 121 
 
 FIGURE 70 
 
 Interior view of Berlin Safety Museum. 
 
 Both of these museums are kept up to date at all times. European 
 
 Institutions 
 
 The latest and most improved safety appliances for acci- Kept Fuiiy 
 
 Up to Date 
 
 dent, as well as sickness prevention, are kept on exhibition 
 and are explained thoroughly at regular hours each day 
 by competent attendants. Admission is free. We are 
 told by good authorities that the keeping up of the Berlin 
 institution alone costs the government at the rate of 25 
 cents per visitor. 
 
 Nearly all machinery is made up into "running ex- 
 hibits" and delegations of workmen, foremen, contractors, 
 farmers and employers from all parts of the empire are 
 
122 
 
 ACCIDENT PREVENTION AND RELIEF 
 FIGURES 7J and 72 
 
 Exterior and Interior view of Munich Institution. 
 
PREVENTION OF ACCIDENTS 
 
 123 
 
 FIGURE 73 
 
 Safely iiiciiiud of loadiug aud unloading round timber. 
 
 encouraged to visit the Berlin and Munich museums for state Factory 
 
 Inspectors 
 
 instructive demonstrations. The various departments of Given Yearly 
 
 ,, T 1 1 i 1 n i? Demonstraticr.! 
 
 the museums are used as regular lecture halls for some 
 of the colleges and the factory and safety inspectors of 
 the country are brought to Berlin regularly for a week or 
 ten dsLYs each year to receive instruction and practical 
 demonstration regarding the year's development in safe 
 and healthy working conditions in the industries and upon 
 the farm. 
 
 Among the thousands of safety appliances which we character of 
 
 Museum 
 
 have examined in the safety museums and in the factories Exhibits 
 of the Tontinent many are very simple; others are very 
 
124 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 FIGURE 74 
 
 Loading and unloading scrap iron by means of electro-magnets. 
 More efficient and much safer than any other method of handling. 
 
 Most European 
 Safety 
 Appliances 
 Known in the 
 United States 
 
 complicated. Some are very practical; others are not at 
 all adaptable to our industries or our way of doing things. 
 It would require a large volume fo give even a super- 
 ficial impression on this subject, and after explaining every 
 safety device or prevention appliance which we have seen 
 or heard of in our investigation, we would probably be 
 told by some experts that there is little that is new among 
 them. Most of these appliances are known somewhere in 
 the United States. Many of these devices have been illus- 
 trated in the literature of American insurance companies. 
 One of our best prevention experts tells us that during a 
 recent investigation tour in one of the European countries 
 he was shown "the best and latest" safety device for punch 
 
PREVENTION OF ACCIDENTS 
 
 125 
 
 FIGURE 75 
 
 Safe handling of steel plates and beams. 
 
126 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 FIGURE 76 
 
 Safety devices for handling white hot metal in rolling mills. 
 
 Prevention 
 Spirit Most 
 Desirable 
 
 presses, Avliicli he immediately recognized as a patented 
 invention of his own, which has had a limited use in the 
 United States for many years. 
 
 A number of American employers are making praise- 
 worthy efforts in safeguarding their factories, as may be 
 learned from the Appendix to this volume. 
 
 Undoubtedly many prevention appliances in use in 
 Germany might well be adopted here, but the real and im- 
 portant difference is not in prevention apparatus — it is in 
 the prevention spirit. In Europe, and especially in Ger- 
 many, accident prevention is kept constantly before the 
 
PREVENTION OF ACCIDENTS 
 
 127 
 
 FIGURE 77 
 
 Asbestos protection for workers handling crucible of molten metal. 
 
 public, before tlie le.i>islatui'es, before the employers, and Extent of 
 before the workers. It is taught the children at school; in'terest'^ 
 the colleges devote much time to it. Trade schools and 
 similar institutions have special courses in the science of 
 accident prevention. Insurance rates are gauged accord- 
 ing to the state of accident prevention practiced in indi- 
 vidual shops, and the leaders in industrial, political and 
 economic life, instead of quarreling as to where the blame 
 for accidents should be placed, combine and concentrate 
 their efforts upon an educational and practical accident 
 prevention campaign. 
 
128 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 X 
 
 FIGURE 78 
 
 riiotograpli of a gruesome exhibit at the Vieiiua Museum. 
 Showing decayed jaw bones, the result of phosphorus poisoning. 
 
 Standard 
 
 Machinery 
 
 Compulsory 
 
 A very effective feature of the German accident preven- 
 tion program is provided by the adoption of standard 
 specifications for all types of machinery. Expert preven- 
 tion engineers draft such specifications, and after their 
 adoption by employers' associations such specifications 
 are insisted upon in the purchase of all future machinery 
 by members of the association. 
 
CHAPTER SEVEN 
 
 Cost of Accident Compensation in Germany in Comparison 
 witk Similar Rates in tLe United States 
 
CHAPTER VII 
 
 Cost of Accident Compensation Insurance in Germany 
 
 IN Comparison with Some Rates in the 
 
 United States 
 
 Some enthusiasts would tell us that equitable compensa- 
 tion would cost less than our present employers' liability 
 system. If we take into consideration harmony, human 
 happiness, health and whole bodies, there is no answer 
 to such an argument, because money cannot buy these 
 things, nor can money compensate for their loss. How- German 
 
 Insurance 
 
 ever, the cost in dollars and cents of an equitable com- Rates Higher 
 
 than Ours 
 
 pensation scheme, as expressed in insurance rates, is much 
 higher than our present employers' liability method. This, 
 at least, has been Germany's experience, and we cannot 
 hope to ever have a more efficient system than Germany 
 has now, as shown in various diagrams on other pages. 
 
 We have gathered the rates of insurance in several 
 thousand occupations, but the average man is more inter- 
 ested in the cost of compensation insurance for a certain 
 
 131 
 
132 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Meaning of 
 
 Lines on 
 Diagrams on 
 Pages Follow- 
 ing 
 
 group. For illustration: The proprietor of a machine 
 shop wants to know what percentage of the pay roll must 
 be paid for all of his employes. The rate for a certain kind 
 of machine operator is of secondary importance. The fol- 
 lowing pages give a record for all the industrial and agri- 
 cultural groups. The black lines indicate the actual cost 
 of insurance which German employers are paying now, 
 and have paid since the beginning of the system, that is, 
 1886 in most cases. The red lines show the record of in- 
 jured workers in each industrial group since the existing 
 scheme was started. You will note that the curves of al- 
 most all industrial groups show a tendency toward more 
 rapid increase between the years 1898 and 1902. This is 
 due to increased requirements regarding reserve funds. 
 Most of the diagrams have been placed so as to become 
 impressive by contrast. All diagrams and figures have 
 been prepared by experienced government statisticians 
 and many of the most important ones under the consulting 
 supervision of Prof. Dr. Manes. 
 
 Before proceeding to illustrate group rates, let us show 
 how extreme the differences in insurance premiums are in 
 a single group. 
 
COMPARISON OF INSURANCE RATES 
 FIGURE 79 
 
 133 
 
 Hazard 
 Figure 
 
 Occupation ^^^^ per $100. pay roll. 
 
 •^ 1 2 3 4 5 6 7 8 9 10 II 12 13 1^ 
 
 .1 
 
 Floor Polishers. Architects. ■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 $ .18 
 
 2.5 
 
 Paperhangers. 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 a^ 
 
 3.3 
 
 Stove Setters. ■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 58 
 
 4.5 
 
 GUziers. Cabinetmakers. H 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 .79 
 
 5.2 
 
 Painters. H 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 92 
 
 5.7 
 
 Brick Yard Workers. ^B 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 101 
 
 5.9 
 
 Asphalt and Cement Workers. Sfone and Tile ■■ 
 Layers. ^H 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1.04 
 
 6.1 
 
 Stone Masons. Stone Breakers, Plasterers, Plaster BBn 
 and Cement Casting Establishments, Arbficial ^H 
 Stone Factory ^B 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 U8 
 
 7. 
 
 Carrying Building Material, Hod Carriers, Tin- bafa 
 smiths. Locksmiths. Blacksmiths, Housesmiths. ^^M 
 Plumbers, Gas, Water and Steam Fitters. HH 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ,1.24 
 
 a 
 
 Mortar Mixers. ^^H 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 141 
 
 9. 
 
 Window Cleaners. ^^H 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 L62 
 
 11. 
 
 Passenger Vehicles, Buggies, etc. ^^H 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 194 
 
 12. 
 
 Yards seUing new buUding n^tenaJ, Bricklayers, ^^^H 
 Building Contractors, Carpenters, Stackers. I^^^^l 
 
 
 
 
 
 
 
 
 
 
 
 
 
 212 
 
 13. 
 
 ^^^1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2.30 
 
 16. 
 
 Underground Work, Sand. Gravel and Clay ^^|H 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2.83 
 
 20. 
 
 ^^^^^^1 
 
 
 
 
 
 
 
 
 
 
 
 
 3.53 
 
 24. 
 
 ^^^^^^H 
 
 
 
 
 
 
 
 
 
 
 
 4.24 
 
 27. 
 
 ' Lightning Rod Makers and Installers. Roofers. ^^^^^^^^| 
 
 
 
 
 
 
 
 
 
 
 
 4.77 
 
 31. 
 
 Welt Diggers. Stone Blasting, Quanies. ^^^^^^^^1 
 
 
 
 
 
 
 
 
 
 
 5.47 
 
 ^3. 
 
 up and taking down scaffolding. ^^^^^^^^^^^^^H 
 
 
 • 
 
 
 
 
 
 
 7.59 
 
 45. 
 
 Attending to and operating steam engines, boil- L|||1|||1||||||||1_J||^^^ 
 ers and other machinery, except wood-working ^^^^^^^^^^^^^^H 
 machines. H^HBI^B^Hl^^^^^^H 
 
 ■^ 
 
 
 
 
 
 
 
 7.95 
 
 62. 
 
 to and operating wood-working H||^H^^^^^^^^^^^^^^H 
 
 
 
 
 
 10.95 
 
 76. 
 
 Wreck-ng buildings and ships, yards for second. ^h||||||||||||||||||||||||^_ 
 hand buildir^g material. PHHHHVVHPI 
 
 1 
 
 1 
 
 1 
 
 1 
 
 1 
 
 L 
 
 
 1342 
 
 
 Averajje for the whole ^roup. m 
 
 
 
 
 
 
 
 
 
 _ 
 
 
 . 
 
 __ 
 
 $2.25 
 
 German insurance rates for 1909. 
 
 Building trades industry. Employers' Mutual Association for 
 western Germany, Section No. 1. 
 
 North- 
 
134 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 TWENTY-TWO YEARS' GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE 80 
 
 TEAMING INDUSTRY 
 
 /as6. jdso /ss>4 issd .jsaz ^^i^M 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 ^ 
 
 
 
 - 
 
 
 
 3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 / 
 
 
 
 
 
 
 
 
 
 
 z 
 
 
 
 
 
 
 
 
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 ■■ 
 
 
 
 
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 ^. 
 
 
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 ■■ 
 
 
 
 
 
 
 
 
 
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 FIGURE 8J 
 FLOUR MILL INDUSTRY 
 
 vK".?*? /S9(7 /ss-i^ jv^s isty£ fsc&/sas\ 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 ^ 
 
 
 ^ 
 
 ^ 
 
 
 
 3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 - 
 
 - 
 
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 r 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 * 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 r 
 
 
 
 
 
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 1* 
 
 » 
 
 
 
 
 
 
 
 
 
 
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 ^ 
 
 P» 
 
 
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 Black lines indicate insurance rates per $100 pay roll. 
 
 Red lines indicate number of injured per 1000 insured workmen. 
 
COMPARISON OF INSURANCE RATES 
 
 135 
 
 TWENTY-TWO YEARS' GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE 82 
 
 RIVER AND LAKE NAVIGATION 
 
 jsss Jd.^0 /ss^ ysss ^^ya^ /^sjyas.X 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 ^ 
 
 ^ 
 
 ^ 
 
 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
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 ^ 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
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 ■ 
 
 ■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 ^ 
 
 ^ 
 
 
 
 ^ 
 
 
 
 
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 m 
 
 M 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 "" 
 
 
 FIGURE 83 
 BREWING AND MALTING INDUSTRY 
 
 ys3s y^c*-^ /s^^ /sss ip^z /^i?<$-j9oa\ 
 
 4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 ^ 
 
 ^ 
 
 
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 ^ 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 ^ 
 
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 — 
 
 
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 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 L— 
 
 
 
 
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 _ 
 
 Black lines indicate insurance rates per $100 pay roll. 
 
 Red lines indicate number of injured per 1000 insured workmen. 
 
136 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 TWENTY-TWO YEARS' GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE 84 
 
 AGRICULTURAL AND HORTICULTURAL 
 
 f666 /890 /<9^ m8 me /sos^sos, 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 ^ 
 
 ^ 
 
 
 s 
 
 1. 
 
 
 
 I 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 ^ 
 
 •^ 
 
 
 
 
 
 s 
 
 , 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 
 
 
 
 
 
 
 
 
 2 
 
 
 
 
 
 
 
 
 
 '^ 
 
 
 
 ♦The heavy drop in insurance rates between lOOG and 1008 and in in- 
 jured workers is due to a census or recount of the farm population and does 
 not necessarily indicate such an improvement as the curve would suggest. 
 Another uncertainty in this chart was brought about by the necessity of 
 estimating farm wages, as no reliable statistics are at hand in this field. 
 
 FIGURE 85 
 TOBACCO INDUSTRY 
 
 /see /S90 /SS4 /ess /saz /m ma 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 J 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 
 \ 
 
 
 - 
 
 . 
 
 3 
 
 S 
 
 
 » 
 
 
 
 . 
 
 ^ 
 
 ? 
 
 r"" 
 
 
 
 = 
 
 = 
 
 
 
 = 
 
 — 
 
 — 
 
 FIGURE 86 
 DAIRY, DISTILLING AND STARCH INDUSTRIES 
 
 me mo /8H /8S6 /S02 jm-^m 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 / 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 ^ 
 
 
 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 
 
 "" 
 
 " 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 t 
 
 
 
 
 
 
 
 
 ^ 
 
 
 .. 
 
 M 
 
 1. 
 
 V 
 
 
 — 
 
 
 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Black lines indicate insurance rates per .$100 pay roll. 
 
 Red lines indicate number of injured per 1000 insured workmen. 
 
COMPARISON OF INSURANCE RATES 
 
 137 
 
 TWENTY-TWO YEARS' GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE 87 
 CLOTHING INDUSTRY 
 
 leee /sso /894 /ess /302 j9oe/306 
 
 ^" 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 m 
 
 
 m 
 
 m 
 
 
 = 
 
 1 
 
 1 
 
 
 
 y 
 
 a 
 
 s 
 
 
 = 
 
 z 
 
 
 2 
 
 z 
 
 = 
 
 
 
 — 
 
 — 
 
 FIGURE 88 
 QUARRY INDUSTRY 
 
 /sss /8SO /894 /896 /&oz /soe'/soa\ 
 
 z 
 
 
 
 
 
 
 
 / 
 
 s 
 
 ^ 
 
 
 
 
 
 ^ 
 
 MB 
 
 ■ ■ii-»* 
 
 
 
 
 
 / 
 
 / 
 
 
 
 > 
 
 s 
 
 s 
 
 
 
 
 
 
 1 
 
 
 
 ^ 
 
 
 
 r 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 
 
 ■= 
 
 ^^ 
 
 Bf * 
 
 
 
 
 
 
 
 
 
 _ 
 
 
 
 FIGURE 89 
 TEXTILE INDUSTRY 
 
 /SSff /<9^<P /a94 /SSd /^^2 /j'aSy&^sX 
 
 z 
 
 
 ■" 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 — 
 
 
 
 
 ^ 
 
 - 
 
 
 1 
 
 
 z 
 
 
 
 
 
 
 z 
 
 z 
 
 
 
 ^ 
 
 !? 
 
 
 
 
 
 Black lines indicate insurance rates per $100 pay roll. 
 
 Red lines indicate number of injured per 1000 insured workmen. 
 
138 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 TWENTY-TWO YEARS' GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE 90 
 SUGAR INDUSTRY 
 
 /d66 /890 /S34 /63S /90£ me-/90S 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 
 - 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 / 
 
 
 
 
 
 J 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 / 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 
 ^ 
 
 
 
 
 
 
 
 - 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 ■" 
 
 
 ^ 
 
 
 
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 FIGURE 9J 
 PRINTING INDUSTRY 
 
 /SS6 /SSa /SS4 /sss /j>as /.^a/;-y!i7/7A 
 
 Z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 S 
 
 s 
 
 z 
 
 z 
 
 
 : 
 
 
 
 s 
 
 s 
 
 
 
 = 
 
 5 
 
 
 = 
 
 
 
 
 : 
 
 
 
 
 — 
 
 FIGURE 92 
 BUILDING TRADES INDUSTRY 
 
 /c^c$*^ A^^^ /<9S^^ /&S(^ AP^^ /P^(S-/S^<ff\ 
 
 Z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 ^ 
 
 
 ^ 
 
 - 
 
 
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 1 
 
 
 
 
 
 
 ^ 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 ___ 
 
 
 __ 
 
 
 __ 
 
 o 
 
 
 — 
 
 
 
 ■• 
 
 
 
 
 - 
 
 
 
 
 
 ' — 
 
 
 — 
 
 
 — 
 
 
 
 - 
 
 
 — 
 
 Black lines Indicate insurance rates per $100 pay roll. 
 Red lines indicate number of injured per 1000 insured workmen. 
 
COMPARISON OF INSURANCE RATES 
 
 139 
 
 TWENTY-TWO YEARS* GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE 93 
 MANUFACTURE OF PAPER ARTICLES 
 
 /<^<9ff /SS>(? /^^^ /SJ'<S /^^£ /^iP/9-/9a^\ 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 / 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 
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 5 
 
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 = 
 
 
 E 
 
 
 r 
 
 
 : 
 
 I 
 
 ; 
 
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 2 
 
 1 
 
 — 
 
 FIGURE 94 
 PAPER MAKING INDUSTRY 
 
 me /& 
 
 'SO /694 /698 m^ /S 
 
 off'/m. 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 - 
 
 
 
 - 
 
 
 
 
 
 
 ■ 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 ^ 
 
 ^ 
 
 
 
 
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 m 
 
 
 
 ■ 
 
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 o 
 
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 — 
 
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 FIGURE 95 
 POTTERY INDUSTRY 
 
 /S86 mo /e$4 me m^ /^os-zsoe, 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 I 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 
 — 
 
 
 _ 
 
 ^ 
 
 
 
 m 
 
 
 
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 ^m 
 
 m 
 
 ^ 
 
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 a 
 
 — 
 
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 ■ 
 
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 3 
 
 
 
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 n 
 
 LJ 
 
 
 
 LJ 
 
 
 Black lines indicate insurance rates per $100 pay roll. 
 
 Red lines indicate number of injured per 1000 insured workmen. 
 
140 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 TWENTY-TWO YEARS' GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE 96 
 SEA NAVIGATION AND FISHERIES 
 
 Yflfifi m.9/7 /A94 /aas m> me-ms. 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 ^f 
 
 
 
 
 
 
 
 
 
 ^ 
 
 ^ 
 
 ^ 
 
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 g^ 
 
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 FIGURE 97 
 MISCELLANEOUS METAL INDUSTRIES 
 
 me /S$0 /6S4 /893 /Si 
 
 ^ /^^^-/J 
 
 m 
 
 ? 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 — 
 
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 FIGURE 98 
 EXCAVATING AND TUNNELING 
 
 /ee6' /sw /SS4 /S9a /s 
 
 ^ /SOS'/SOS. 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
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 ^ 
 
 ^ 
 
 
 
 
 
 
 
 ^ 
 
 ^ 
 
 ^ 
 
 
 
 
 
 
 
 ^ 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 
 
 
 
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 n* 
 
 n 
 
 
 
 
 
 p« 
 
 iiii 
 
 
 
 id 
 
 
 
 ^ 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Black lines indicate insurance rates pel $100 pay roll. 
 Red lines indicate number of injured per 1000 insured workmen. 
 
COMPARISON OF INSURANCE RATES 
 
 141 
 
 TWENTY-TWO YEARS' GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE 99 
 GLASS INDUSTRY 
 
 me /e90 /d94 /ese m2 /m-zs^^ \ 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 - 
 
 
 
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 B 
 
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 L. 
 
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 — 
 
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 !! 
 
 !!!! 
 
 - 
 
 
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 u 
 u 
 
 " 
 
 ■ 
 
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 FIGURE JOO 
 WOODWORKING INDUSTRY 
 
 me /890 /694 ms /SOO m6-f908\ 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 -n 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 - 
 
 
 - 
 
 
 ^ 
 
 
 — 
 
 / 
 
 
 
 
 
 
 
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 ^ 
 
 ^ 
 
 ^ 
 
 
 
 
 
 
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 ^ 
 
 tf 
 
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 M 
 
 M 
 
 m 
 
 
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 % 
 
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 ~ 
 
 
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 FIGURE \^\ 
 MECHANICAL AND ELECTRICAL INDUSTRIES 
 
 me /sso /SS4 /s^e /so^ /sos-jsoe \ 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 I 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 o% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 5 
 
 gi 
 
 
 g 
 
 
 
 - 
 
 
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 ; 
 
 
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 * 
 
 *■ 
 
 ! 
 
 rr 
 
 
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 Black lines indicate insurance rates per $100 pay roll. 
 
 Red lines indicate number of injured per 1000 insured workmen. 
 
142 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 TWENTY-TWO YEARS' GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE J02* 
 STATE RAILWAYS, MAIL AND TELEGRAPH SERVICE 
 
 me m<? /ss4 ms /W2 ms-ms I 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 J 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 o 
 
 
 
 
 
 
 K 
 
 
 
 
 m 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 5 
 
 5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 f— 
 
 
 
 
 
 *Tlie wage rate is estimated. 
 
 FIGURE J03 
 FOOD AND CANNING INDUSTRY 
 
 /8S6 /6S0 /894 /SS8 JS02 /SOS-t'SOS I 
 
 Z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 = 
 
 
 
 . 
 
 
 
 
 
 c 
 
 
 
 
 m 
 
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 aa 
 
 H 
 
 
 
 m 
 
 U 
 
 ^ 
 
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 m 
 
 ■ 
 
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 FIGURE J04 
 CHEMICAL INDUSTRY 
 
 /sse mo /e94 ms ^902 m 
 
 H906 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 ^ 
 
 ^ 
 
 __ 
 
 __ 
 
 __ 
 
 
 
 
 
 
 
 ^_ 
 
 
 
 
 
 
 
 __ 
 
 __ 
 
 _ 
 
 I 
 
 
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 ^ 
 
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 B 
 
 - 
 
 
 
 
 
 
 
 * 
 
 
 
 
 
 
 
 — 
 
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 — 
 
 
 
 
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 - 
 
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 - 
 
 
 
 
 
 
 
 
 
 ^^ 
 
 
 
 
 
 
 
 * 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Black lines indicate insurance rates per $100 pay roll. 
 
 Red lines indicate number of injured per 1000 insured workmen. 
 
COMPARISON OF INSURANCE RATES 
 
 143 
 
 TWENTY-TWO YEARS' GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE J05 
 MANUFACTURE OF MUSICAL INSTRUMENTS 
 
 /see /S90 /s$4 /esa /$oz /^ae-m/i 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 " 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 o% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 FIGURE J06 
 MINING INDUSTRY 
 
 /666 mo m4 /e^s /^oz me-ma, \ 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 - 
 
 ^ 
 
 
 
 
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 ^ 
 
 ^ 
 
 M 
 
 ^ 
 
 
 
 
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 m 
 
 m 
 
 
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 FIGURE J07 
 WAREHOUSE INDUSTRY 
 
 /886 /8&0 /8M /8^ /S02 W&-/303 
 
 
 Z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 ^ 
 
 
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 J 
 
 
 
 
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 ^ 
 
 
 
 
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 ^^ 
 
 ^ 
 
 Black lines indicate insurance rates per $100 pay roll. 
 
 Red lines indicate number of injured per 1000 insured workmen. 
 
144 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 TWENTY-TWO YEARS' GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE JOS 
 
 STREET AND INTERURBAN RAILWAYS 
 
 /*»• mo J8$4 /893 /Si^2 /SOg-/S^ \ 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 FIGURE m 
 BRICK MAKING INDUSTRY 
 
 /SSe" /890 /6S4 /693 7S02 m^'/SOS, \ 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 FIGURE no 
 LEATHER INDUSTRY 
 
 /866 J890 /S^ /698 JSOe /S06^S0d, \ 
 
 Z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 ^ 
 
 
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 pd 
 
 
 
 
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 15 
 
 ■■ 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 LJ 
 
 u 
 
 
 
 
 
 Black lines indicate insurance rates per $100 pay roll. 
 
 Red lines indicate number of injured per 1000 insured workmen. 
 
COMPARISON OF INSURANCE RATES 
 
 145 
 
 TWENTY-TWO YEARS' GERMAN HISTORY OF INJURED 
 
 WORKERS AND INSURANCE RATES FOR VARIOUS 
 
 INDUSTRIAL GROUPS 
 
 FIGURE UX 
 PRIVATE RAILWAYS 
 
 ms /890 1894 /ass /S02 m/s-ma 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 FIGURE n2 
 IRON AND STEEL INDUSTRY 
 
 /66S /^O m^ mS /300 /S06'/S08 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 ^ 
 
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 FIGURE nZ 
 GAS AND WATERWORKS 
 
 me /8S0 m4 /ssa m2 /m-/m. 1 
 
 z 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 Black lines indicate insurance rates per $100 pay roll. 
 
 Red lines indicate number of injured per 1000 insured workmen. 
 
146 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Rates in 
 Germany 
 Higher 
 than in 
 Eng-land 
 
 It will be seen that most of these insurance rates are 
 extremely high as compared with employers' liability in- 
 surance rates in the United States. In fact, German rates 
 are higher than present workers' indemnity insurance rates 
 in England, especially when we bear in mind that the Ger- 
 man insurance system provides only for a small portion 
 of deferred payments. Each year's assessment covers the 
 actual cost of that year, plus approximately 10 per cent 
 for reserve fund, consequently the cost will increase each 
 year because the new permanent injuries are added each 
 year to the existing old ones. 
 
 We have asked a number of prominent men what the 
 final and permanent cost of insurance will be. While this 
 is a difficult question to answer accurately. Prof. Dr. 
 Manes gave us the estimate which is illustrated in the 
 black line in Figure 114. 
 
 FIGURE IH 
 
 INSURANCE COST IN GERMANY FOR ALL INDUSTRIES 
 
 COMBINED 
 
 AfSS S(? S4 SS/mm^/O /4- /S 2Z 26 30-/S35\ 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 
 3 
 
 
 
 
 
 
 
 
 
 
 
 -^ 
 
 Z 
 
 
 
 
 
 
 
 .•••' 
 
 .•* 
 
 0*' 
 
 %^^ 
 
 I 
 
 J 
 
 ^ 
 
 
 
 — ^ 
 
 * * 
 
 
 
 
 
 
 
 
 c. 
 
 - 
 
 
 
 ^^m 
 
 
 
 
 
 
 
 Black full line — insurance cost in percentage of pay roll to date for all 
 occupations combined. 
 
 Black dotted line — estimated cost to maximum (1035). 
 
 Red line — accidents per hundred insured workers, all occupations combined. 
 
COMPARISON OF INSURANCE RATES 147 
 
 The full line beginning at 1886 and ending at 1908 
 gives the cost of insurance for all industries combined in 
 percentage of pay roll. The dotted line is the estimated 
 cost up to a maximum and permanent point, which is sup- 
 posed to be 1935, that is fifty years after the inaugura- 
 tion day of the workers' accident compensation insurance 
 system. The cost in 1908 is 1.75 per cent, in 1906, 1.725 
 per cent, in 1902 it is 1.73 per cent. The six year period 
 consequently shows very little change. 
 
 A number of experienced officials of employers' as- 
 sociations feel that Dr. Manes' estimate of nearly double 
 the present cost is too high, but other equally good men 
 consider the figure very conservative. If we consider the 
 estimate as correct it would mean that in order to cover 
 deferred payments we must practically double each one of 
 the insurance rates shown on the preceding pages. 
 
 We have asked a number of German scientists: How Germany's 
 
 Policy Is 
 
 do you explain the higher cost of your system w^hen you to increase 
 
 . the Worker's 
 
 claim, and with good reason, higher all-around working Efficiency 
 efficiency than other nations? Their answer is always 
 the same, namely: ^^We do more for the injured work- 
 ers." Substantially they tell you this: ''We are not 
 building for one year or ten years; we are building for 
 centuries. Believing in the 'survival of the fittest,' we are 
 building up a nation fit to win in international competi- 
 tion. We believe it is a paying proposition for us to spend 
 more money than other nations for our incapacitated work- 
 ers. For humane as well as for business reasons it is good 
 policy. But please note that we are spending our money, 
 not in life pensions to slightly disabled workers, nor in 
 old age pensions to persons who can prove that they are 
 
Beneficial 
 Influence of 
 Social 
 Insurance 
 
 English 
 Views of the 
 German 
 System 
 
 148 ACCIDENT PREVENTION AND RELIEF 
 
 paupers. We believe such a course would manufacture 
 paupers and invalids. We spend our money with the 
 workers' money in every endeavor that is calculated to 
 promote their efficiency or capacity. We spend lots of 
 money voluntarily and in addition to our insurance pre- 
 miums to mend as much as possible, and as quickly as pos- 
 sible, the injured worker's ills, so that he may again be- 
 come a producing member, instead of a consuming member, 
 of the nation." We have many letters from prominent 
 employers and presidents of their respective industrial 
 organizations expressing the above views and their con- 
 viction that the average German worker is more efficient 
 today on account of being relieved from worry and fear 
 of accidents and sickness. This relief work seems to have 
 a favorable effect not only on the worker, but also upon 
 his family. Medical authorities claim that the height and 
 fitness of the young men who are examined for military 
 service is improving constantly and that this is in a large 
 measure due to 25 years of social insurance. 
 
 Nor is this impression of German efficiency confined to 
 Germans. England has sent a dozen or more commissions 
 into Germany in the last year to study industrial condi- 
 tions. All of them speak highly in their reports about 
 German industrial efficiency. We quote a small part of 
 the report of one of the most critical English commissions, 
 which consisted of members of the Labor Party and Trade 
 Union Commission: 
 
 "One effect of all this public and voluntary organ- 
 ization is to prevent the hideous open social sores 
 with which we in Great Britain are so familiar in 
 the streets of our larsje cities. There are certainly 
 
COMPARISON OF INSURANCE RATES 149 
 
 poor in Germany, many more than in England. 
 But there are few so utterly broken on the wheel 
 of misfortune as those who are allowed with us to 
 wander about parading their sores and propagating 
 their kind. 
 
 "To sum up on this first point, it seems to us that 
 Germany, individually and collectively, is realizing 
 itself and organizing itself. True, it is largely by 
 bureaucratic methods. What effect this may have 
 ultimately, or may have had already, on individual 
 character, as well as upon home life, we are not in 
 a position to say; but we are convinced that it is 
 having a considerable effect at present in increasing 
 the productive efficiency of the nation. In short, 
 it is brains, and not tariffs, that account for Ger- 
 many's wonderful progress in the world.'' 
 Even in France, where ordinarily anything German French 
 
 ' J .; » Views of the 
 
 finds but little consideration, the German social insur- German 
 
 System 
 
 ance system is admired. Edouard Fuster, of Paris, one of 
 the greatest social insurance experts in the world, is 
 quoted as saying: 
 
 "The money which Germany is devoting to social 
 insurance reappears in a thousand forms. It pro- 
 motes happiness of the family, health and self-re- 
 spect. It makes for a strong, enduring nation and 
 for international supremacy." 
 But however beautiful sentiment may be we are a 
 practical nation. We are business men first and altruists 
 second. We can, and must, do as well for our workers 
 as any nation in the world, but we must not forget that 
 the average worker has a far better chance here than in 
 
150 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Comparison 
 of German 
 with English 
 and American 
 Insurance 
 
 Germany or any other European country. It may be 
 desirable and possible to inaugurate a relief system as ef- 
 ficient as the German with lower compensation and lower 
 cost. On this assumption we had prepared a comparative 
 estimate of German, English and American compensation 
 insurance values and here is the result: 
 
 Estimated Value of German vs. English and American 
 Accident Compensation Insurance. (By Prof. Dr. Alfred 
 Manes. ) — 
 
 "Free medical treatment and continuous pay- 
 ments to the family of a workman killed by accident 
 in Germany are lacking both in America and Eng- 
 land. 
 
 "If German accident insurance only did what is 
 
 done by American private insurance ( Co. 
 
 policy 1910,) it would, in my estimation, be from SS 
 to 66 per cent cheaper than it is today; if restricted 
 to the English benefits it would be from 25 to J/0 
 per cent cheaper. If, on the other hand, American 
 or English insurance were to do exactly the same 
 that is done by the German employers' association 
 for the injured workman or his family, the premium 
 of American insurance would have to be raised hy 
 at least 100 per cent^ possibly even hy 150 per 
 cent, while those of English insurance would have 
 to be increased ahqnt 50 to 100 per cent. 
 
 "The comparison can only be of an approximate 
 nature; an exact comparison is hardly possible ow- 
 ing to the numerous differences in regard to details." 
 However, at best this is only an estimate, and experi- 
 ence is necessary to prove estimates correct. We were in 
 
COMPARISON OF INSURANCE RATES 
 
 151 
 
 close touch with insurance concerns before our departure 
 for Europe, and have been since our return to the states. 
 We have compared insurance rates before and since the 
 enactment of the New York compensation law. Com- 
 parison in a few schedules is startling. 
 
 FIGURE J.J5 
 
 INSURANCE RATES IN NEW YORK BEFORE AND AFTER 
 
 ENACTMENT OF LAW OF 1910. 
 
 Per $100.00 Pay Roll. 
 
 
 
 2 , 
 
 5 - 
 
 1- 
 
 5 ( 
 
 & 
 
 7 
 
 3 ! 
 
 ) 
 
 CHEMICAL SCHEDULE g . ^^ L 
 Acid Manufactures .T^^"^ E 
 
 Increase 38% ^^^^^ ■ 
 
 ' 
 
 
 
 
 
 
 
 
 $.81 
 1.12 
 
 Aereated Water . f^"^^ E 
 
 Increase 39%. '^ F" 
 
 ' 
 
 
 
 
 
 
 
 1.62 
 2.25 
 
 RMii niN<^ TDAnr*? L 
 
 
 
 
 
 
 
 2.47 
 5.00 
 
 BUILDING TRADES ^^^^^ ^^1 
 
 Carpenters After EBm 
 
 
 Increase \U^% P^ 
 
 
 
 
 
 
 
 
 
 
 
 Z75 
 &25 
 
 ^QforemttM 
 
 1 lasona ^^.^^^ kUta^^H 
 
 Increase 12/% p 
 
 
 
 
 
 
 Painters before ■ 
 
 
 
 
 
 
 
 
 1.75 
 5.00 
 
 ruiric^ro ... HHHiH 
 
 
 
 Increase 186% ' ^H 
 
 
 
 
 
 PinpFif+Pr«; Before ■! 
 
 
 
 
 
 
 
 
 135 
 
 6.25 
 
 Kipehtters ^^^^^11 
 
 HVP 
 
 1 
 
 Increase 362% ^ 
 
 III 
 
 This increase brings New York insurance rates for insurance 
 
 Rates in 
 
 compensation above the German rates, and we have every New York 
 reason to believe that present New York rates will have to 
 be increased materially. On the other hand, it is doubtful 
 whether the efficiency is any greater than it was under the 
 
152 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 old law, SO that the average injured worker and his depend 
 ents receive no larger share of the employer's payments. 
 A comparison of insurance rates now paid in New 
 York with those paid in Germany for the same industries 
 is made in the following figure. 
 
 FIGURE n6 
 
 COMPARISON OF COMPENSATION INSURANCE RATES IN THE 
 
 STATE OF NEW YORK AND GERMANY. 
 
 Per $100.00 Pay Roll. 
 
 123456789 
 
 CnrDcntci's ^^•''"^V F^*^ ^* 
 
 
 
 
 
 
 $257 
 5j00. 
 
 v.arpcnxcr5 New York WatelBB^ 
 
 
 
 
 
 
 .,-,-„- German RateM[ 
 
 
 
 
 
 
 
 
 1.43 
 6.25 
 
 mooonj New York Ratelill^™ 
 
 ■I 
 
 
 
 
 
 
 
 Painters dermsn RateB 
 
 
 
 
 
 
 
 
 1.12 
 
 5.00 
 
 ramtcrs New York Ratell^^ 
 
 
 
 
 
 
 
 PlumbPi- German Rate ■ 
 
 
 
 
 
 
 
 
 150 
 
 (3.25' 
 
 HlumbefS New York RateM 
 
 ■ 
 
 1 
 
 Staam&PiDeRtters ^^'''"^" ■^^telt 
 
 
 
 
 
 
 
 
 150 
 
 6.25 
 
 Dt.amfcnpcrittcrc New York W;,tpB^^^ 
 
 1 
 
 
 
 
 rnsl MmoKc German Rai:e|BL ^ 
 
 
 
 
 
 
 r t.oo 
 7.20 
 
 Coal Mmci c ^^^ y^^^ u.fp^B^H 
 
 — 1 1 1 1 1 1 1 1- 
 
 Insurance 
 Rates in 
 Ohio 
 
 The State of Ohio enacted an Increased Employers' 
 Liability Law a year ago which, however, is expected to 
 be replaced with a Compensation Act at this year's session 
 of the legislature. This Ohio Act also increased insur- 
 ance rates very materially as is demonstrated in Figure 
 117. 
 
COMPARISON OF INSURANCE RATES 
 
 153 
 
 FIGURE n? 
 INSURANCE RATES IN OHIO^ BEFORE AND AFTER ENACT- 
 MENT OF LAW OF 1910 
 
 Per $100.00 Pay Roll 
 
 1 
 
 File Workers ^-I L 
 
 Increase fOOK f F 
 
 2 
 
 . i 
 
 < 
 
 ^ 
 
 ^ 
 
 
 i 
 
 k ^ 
 
 $.22 
 ,44 
 
 Lumber Yar»ds *-? C 
 
 Increase 63% ^T^®*" P 
 
 1 
 
 
 
 
 
 
 
 
 .60 
 I.IO 
 
 Provision Merchants Aflgjl^^fi 
 
 Increase 128% T P 
 
 1 
 
 
 
 
 
 
 
 
 .60 
 1.57 
 
 Box Manufacturers a^° j 
 
 Increase 150% \ 
 
 ■ 
 
 
 
 
 
 
 
 
 JO 
 
 175 
 
 Plasterers A«°'^tl 
 
 Increase 30% ^P®*^ ^¥ 
 
 
 
 
 
 
 
 
 1.00 
 
 1.50 
 
 r 1 Beforetaii 
 Carpenters ^.^^^ S 
 
 Increase 2>3% ' ^1 
 
 ' 
 
 
 
 
 
 
 
 I.P5 
 2.57 
 
 Mason Contractors ^ J^^ 
 
 Increase 26% ' 
 
 
 
 
 
 
 
 
 150 
 3.15 
 
 
 1 
 
 Concrete Construction y^X^. 
 
 Increase 110% ' 
 
 
 
 
 
 
 
 
 2.50 
 525 
 
 
 
 
 
 
 
 5.26 
 730 
 
 Before 
 
 Structural Iron Workers Afier 
 
 
 
 Increase 4-6% 
 
 
 
 
 u yu t' Before 
 
 HouseWrecking After 
 
 Increase 100% 
 
 
 g 
 
 g 
 
 g 
 
 5.00 
 
 10.00 
 
 ■ 
 
 
 
 
 
 
 
 
 
 
154 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Insurance 
 Legislation 
 Demands our 
 Attention 
 
 A comparison of the insurance rates which are il- 
 lustrated in the last pages would impress every employer 
 and every legislator with the necessity of careful con- 
 sideration of new legislation. We should act as rapidly 
 as is compatible with the greatness and complexity of 
 the subject. We must proceed in a consti^ctive and not 
 a pessimistic spirit, but unless we give due consideration 
 to every phase of the subject, we shall only retard instead 
 of hastening the final equitable solution of the great 
 problem. 
 
CHAPTER EIGHT 
 
 Employers Liability m Great Britain Prior to the 
 Compensation Acts 
 
CHAPTER VIII 
 
 Employers^ Liability in Great Britain Prior to the 
 Compensation Acts 
 
 We will now turn from the remarkable system and 
 recorded experience of Germany to consider the compen- 
 sation principle as embodied in the law of Great Britain. 
 Our entire legal system rests upon an English base, and 
 we turn with natural interest and curiosity to the spec- 
 tacle presented by the introduction of novel theories and 
 practices into a proverbially conservative system of law 
 hitherto closely akin to our own in form and administra- 
 tion. 
 
 It is from the English common law we derive the English 
 
 Common Law 
 
 fundamentals of our prevailinc]^ doctrine of employers' the Baais of 
 
 ^ ^ our Present 
 
 liability. The statutes of our states reflected the modifi- Liability Laws 
 
 cations enacted by the British Parliament. It would 
 
 therefore seem that by briefly reviewing the liability of 
 
 the employer in Great Britain before the recognition of 
 
 the compensatory principle, we may more clearly realize 
 
 the character and extent of the change it effected, and we 
 
 are in a better position to measure the consequences 
 
 which would flow from similar action within our own 
 
 states. 
 
 1S7 
 
158 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Employer and 
 Employe 
 Under the 
 Common Law 
 
 Development 
 of the 
 Liability Laws 
 
 In the eyes of the common law the relation of the 
 employer and workman, or, as it was usually termed, that 
 of "master and servant," was one of contract arising out 
 of the agreement of one to give, the other to compensate, 
 service. The development of the common law theory of 
 that relationship represents the continuous effort of suc- 
 cessive courts and judges, through long periods of time 
 and many changes of condition, to construe that contract 
 in accordance with the circumstances of employment and 
 society in which the employer and workman made it. 
 Thus, during many centuries, the liability of the em- 
 ployer for injuries received in the course of employment 
 was defined, not by an Act of Parliament, but by judicial 
 interpretation of the contract of service. Toward the 
 middle of the 19th century Parliament for the first time 
 undertook to remedy certain defects and hardships aris- 
 ing in the course of the administration of the common 
 law by reading into the contract of service new terms of 
 liability placed there from considerations of public policy 
 and justice to the workman. To this secondary stage of 
 the development of employers' liability belong those 
 various statutes passed from time to time during the half 
 century immediately preceding the first Compensation 
 Act. 
 
 This statutory liability, modifying and extending or 
 sometimes merely defining the obligations of the common 
 law, was repeatedly copied into the legislation of our 
 states and set on foot the restless movement with which 
 we have become so familiar, and which from year to 
 year, in accordance with the prevailing sentiment of state 
 legislatures, has either imposed increasing duties upon 
 
EMPLOYERS LIABILITY IN GREAT BRITAIN 159 
 
 the employer or qualified or removed in corresponding 
 measure his former defenses at the common law. 
 
 Years ago Lord Herschell epitomized the master's an- 
 cient duty to his employes in this brief statement: "The 
 employer is bound at common law to carry on his busi- 
 ness so as not to expose workmen to unreasonable risks." 
 Out of the delicate undertaking involved in ascertaining in 
 each case the character of the reciprocal duties of the em- 
 ployer and assumed risks of the employe arises the 
 variety of technical difficulties with which the application 
 of the law of negligence has made us familiar. 
 
 In the elder day, an employer, like all other persons, obligation 
 
 Under the 
 
 was under the broad, elementary obligation to so use his common 
 
 Law 
 
 property and conduct himself as not to cause injury to 
 others. This obligation rested upon him with respect to 
 those who entered his service not less than to those who 
 were outside of it. The employer at the common law 
 was, at all times, liable to his employe, even as to a 
 stranger, for the consequences of injury caused by his 
 personal negligence or his failure to perform any duty 
 placed upon him by statute. His special obligations to 
 his workmen required him to supply and maintain a 
 reasonably safe place in which to work, equipped with 
 reasonably safe machinery and appliances, and to exercise 
 in the selection of fellow servants that degree of care 
 which would characterize an ordinarily prudent man, and 
 to provide for employes rules for their instruction and 
 guidance. But while the common law made the employer Employer 
 
 . 1^ I,* "°^ Liable 
 
 liable for his personal negligence, it did not hold him for Negligence 
 
 , , J , , T of his Agent 
 
 liable for the negligence of those to whom he delegated 
 the control, direction or management of his business, or 
 
160 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Conduct that 
 Relieved 
 Employer 
 of Liability 
 
 Indemnlflcatioiil 
 Personal 
 
 any part of it, nor for any injury suffered by one employe 
 through the negligence of another employe engaged in 
 the same employment. In any action brought against 
 him by one of his workmen for injury received in the 
 course of employment, the employer was relieved of lia- 
 bility if he could show that the injured man had agreed 
 to take the risk of his employment, even though that risk 
 resulted from the employer's own failure to perform a 
 common law duty ; or if he could show that the workman 
 had himself contributed by his conduct to his own injury, 
 or had been injured through the negligence of a fellow 
 workman or some person to whom the employer had 
 transferred his own power of direction and control, ex- 
 cept that the employer was never allowed to delegate to 
 another any specific duty placed upon him by a statute. 
 
 Whenever liability was established, it required the em- 
 ployer in every case to indemnify the injured workman 
 personally. No right of action was possessed on his be- 
 half either by his family, his relatives, his dependents, or 
 his personal representatives, or his estate. If a workman 
 was killed by accident or died in consequence of it, 
 his right of action died with him, no matter how great 
 might have been the negligence of his employer. If, 
 under like conditions of injury, a workman survived and 
 sued, the death of the employer before judgment was 
 awarded likewise barred recovery. 
 
 A general percei^tion of the hardships arising from 
 the doctrine that a personal action dies with the per- 
 son in whom it exists, led to the first statutory modi- 
 fication of the common law in 1846, by the passage 
 of what was commonly known as "Lord Campbell's Act" 
 
EMPLOYERS' LIABILITY IN GREAT BRITAIN 161 
 
 or "The Fatal Accidents Act of 1846." This measure Extension 
 
 gave to the personal representative of anyone whose J^o Rlpresenta- 
 
 death was due to the wrongful act or neglect of another, ^^""^^ 
 
 the same right of action which would have been possessed 
 
 by the deceased had he survived. A just and much 
 
 needed remedy was thus conferred upon the family or 
 
 dependents of a workman whose death was caused by 
 
 negligence. But neither this statute nor any other which 
 
 succeeded it prior to the Compensation Act gave any right 
 
 of action against the estate of an individual employer to 
 
 whose negligence death or injury might be due. Thus, 
 
 even under Lord Campbell's Act, damages claimed for 
 
 death due to negligence were required to be recovered 
 
 from an individual employer during his lifetime, for no 
 
 action could be maintained against his estate. 
 
 As time brought changes in forms and methods of 
 production and the factory system originated and de- 
 veloped, the individual employer retired more and more 
 from personal contact with his workmen and was sue- / 
 ceeded by managers or superintendents exercising control 
 and direction in his stead. Likewise the individual em- Difficulty of 
 
 Proving 
 
 ployer gave way to the corporation operating through its Liability 
 directors and managing officials. With these changes 
 the proof of personal negligence became increasingly more', 
 difficult, until, where the employer was a corporation, it\ 
 was substantially impossible. 
 
 The personal liability of the employer was still further 
 limited by another important consideration. The gen- 
 eral principle that each individual is responsible for his 
 own acts but not those of another was subject to qne 
 marked exception. At the common law the master had 
 
162 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Origin of 
 
 "the Fellow 
 
 Servant 
 
 Doctrine" 
 
 Its Intro- 
 duction into 
 American 
 Law 
 
 always been held liable for the acts of his servants within 
 the scope of their authority. In 1837, in the now^ famous 
 case of Priestly vs. Fowler, (a) it was held that the 
 master was not liable to one servant for injury due to 
 the negligence of a fellow^ servant engaged in the same 
 employment. This decision originated the fhuch discussed 
 principle of common employment, or, as it is more popu- 
 larly known in our own country, "the fellow servant 
 doctrine." 
 
 A powerful decision of the Supreme Court of Mas- 
 sachusetts, written by its then Chief Justice Shaw, in- 
 troduced this ruling into American jurisprudence in 
 1842. (b) It rapidly prevailed in other states and be- 
 came an accepted principle of American laAV. It was 
 here interpreted, however, with such restrictions that, 
 generally speaking, it has never been given the extreme 
 application which obtained in England. In Great Britain 
 the principle was carried to a point at wiiich it practi- 
 cally covered all persons engaged in a common employ- 
 ment without regard to rank. Thus it was there held 
 that the general manager of a railway company was in 
 common employment Avith a platelayer, (c) the captain 
 of a ship with one of the ordinary seamen, ^^) a miner 
 with the overseer or superintendent of a mine.^®) 
 
 Our federal and state courts at no time went so far in 
 applying this important principle, but they nevertheless 
 
 (a) 3 M. & w. 1. 
 
 (b) Farwell vs. Boston, etc., R. R. 4 Met. 49. 
 
 (c) Conway vs. Belfast & Northern R. R. Co., 11 Ir. L. R. 34.5. 
 
 (d) Hedley vs. Pinkney & Sons Steamship Co., 1 Q. B. 58; 61 L. 
 J. Q. B. 179. 
 
 (e) Hall vs. Johnson, 3 H. & C. 589. 
 
employers' liability in great BRITAIN 163 
 
 became involved in many confusing and contradictory de- confusion 
 cisions due in all likelihood to the lack of an accurate Liabmty Laws 
 and generally accepted definition of common employment. 
 ''There is probably no one matter/' said the Supreme 
 Court of the United States, "upon which there are more 
 conflicting and irreconcilable decisions in the various 
 courts of the land than the one as to what is the test of 
 common service such as to relieve the master from lia- 
 bility for the injury of one servant through the negligence 
 of another." (a) 
 
 It is interesting to observe that the defense of com- 
 mon employment was unknown to the Civil Law of Europe 
 and that contributory negligence did not as a rule bar 
 recovery, but was rather an element modifying the 
 amount of damages. 
 
 The principles enunciated in 1837 became permanent 
 law by a decision of the House of Lords in 1858, (^) and 
 from that time there was a continuous agitation for the 
 abolition or modification of the defense of common em- 
 ployment. In 1877 a bill was submitted and considered 
 by a committee of the House of Commons which proposed 
 to make the employer responsible for the negligence of 
 persons entrusted with the duties of superintendence and 
 who were to be legally designated as "vice-masters." The 
 committee, however, refused to recommend the measure. ^ 
 In 1879 the government proposed that corporations 
 should be held liable for injuries caused by the negligence 
 of their manager or managers. This, however, was also 
 
 (a) B. & O. R. R. vs. Bau^, 149 U. S. 368. 
 
 (b) Bartonshill Coal Co. vs. Reid, 3 Macq. H. L. Cas. 266. 
 
164 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 ] 
 
 c New Features 
 
 J of the 
 
 ] Emplayers' 
 
 Liability Act 
 
 Of 1880 
 
 withdrawn. Finally, in 1880, the government introduced 
 and enacted what has since become known as the Em- 
 ployers' Liability Act of 1880. (a) The purpose of this 
 measure, it was stated, was to "bring back the law to 
 what it was supposed to be in England before the case 
 of Priestly vs. Fowler." 
 
 The new Act provided: "The same right of compensa- 
 tion and remedies against the employer as if the workman 
 had not been a workman, nor in the service of the em- 
 ployer, nor engaged in his work."^^) It imposed upon 
 the employer, whether an individual or a corporation, lia- 
 bility : 
 
 "1. For defective ways, works, machinery and plant. 
 
 2. For the neglect of his superintendents. 
 
 3. For the neglect of persons to whom he delegated 
 his powers of giving orders 
 
 4. For defective by-laws and instructions. 
 
 5. In the case of railway companies, for the negli- 
 gent management of trains, points and signals." (^) 
 
 The Act seems at first to have been a subject of much 
 popular misunderstanding. It is and was asserted to 
 have completely abolished the doctrine of common em- 
 ployment, and it created considerable alarm from a gen- 
 eral assumption that it imposed extremely onerous obliga- 
 tions. As the statute was subjected to interpretation, it 
 became clear that with respect to the employer's personal 
 liability for injuries arising from defects in his ways, 
 
 (a) 43 and 44 Victoria, c. 42. 
 
 (b) 43 and 44 Victoria, Sec. 1. 
 
 (c) Ruegg's Employers' Liability, etc. (Sth edition), 
 
 1C3. 
 
employers' liability in great BRITAIN 165 
 
 works, macliinery or plant of wliicli lie had or could be 
 presumed to have knowledge, no addition had been made 
 to his common law liability. The real increase of obliga- 
 tion consisted in making him responsible for the negli- 
 gence of those to whom he delegated permanent or tem- 
 porary duties of supervision, and to that extent only the 
 Act of 1880 modified the doctrine of common employ- 
 ment. 
 
 In an action at common law, the amount of compen- compensation 
 
 Under the 
 
 sation recoverable for personal injury due to negligence Act of isso 
 was not limited. In the Act of 1880, recovery was ex- 
 pressly limited to a sum "equivalent to the estimated / 
 earnings during the three years preceding the injury, of 
 a person in the same grade employed during those years / 
 in the like employment and in the district in which the 
 workman is employed at the time of injury." (a) 
 
 The Act of 1880 was closely followed by several of 
 our states. In many others, it supplied the inspiration 
 for modifying or greatly restricting the defense of com- 
 mon employment as well as that of assumed risk. No 
 state followed the British example, however, in providing 
 equal limitation upon recovery. Indeed, in some of our 
 states a constitutional provision prohibits the legislature 
 from restricting the amount of damages recoverable for 
 injuries resulting in death. 
 
 From this brief review, it must be fairly evident that American 
 
 ^ Employers 
 
 under the common law^ and its statutory modifications Liability 
 
 Greater than 
 
 by Lord CampbelPs Act and the statute of 1880, the British 
 liabilities of the British employer are by no means equal 
 
 (a) Sec. 3. 
 
166 ACCIDENT PREVENTION AND RELIEF 
 
 Comparative to the obUgatioiis existiiig in most of the American 
 
 Compensation 
 
 states, while the British workman prosecuting an action 
 for personal injury was at a decided, indeed distressing, 
 disadvantage in comparison with an American workman, 
 both with regard to the nature of his remedies and the 
 amount recoverable. • 
 
CHAPTER NINE 
 
 Tlie Introduction or tne Compensation Principle oy the Acts or 
 
 1897 ancl 1900 and tke Investigation of tLe Operation 
 
 of tLis Legislation ty tke Departmental 
 
 Committee of 1904 
 
CHAPTER IX 
 
 The Introduction of the Compensation Principle by 
 
 THE Acts of 1897 and 1900 and the Investigation 
 
 OF THE Operation of this Legislation by the 
 
 Departmental Committee of 1904 
 
 The Act of 1880 by no means stopped agitation for a Additional 
 further increase of employers' liability. From 1893 to Lilwmy 
 1897 several measures were presented by Mr. Asquith, Legislation 
 and others, to secure either abolition of the doctrine of 
 common employment, or further modification of the de- 
 fense of assumed risk. In 1893, on the second reading in 
 Parliament of a bill for the latter purpose, the first step 
 towards the principles later embodied in the Compensa- 
 tion Act of 1897 was taken by Mr. Chamberlain, who 
 offered an amendment to the pending bill, declaring "that 
 no amendment of the law relating to employers' lia- 
 bilit}^ Avill be final or satisfactory which does not provide 
 compensation to workmen for all injuries sustained in the 
 ordinary course of their employment, and not caused by 
 either their own acts or default." (^) 
 
 In 1897 Parliament passed the first compensation 
 measure, professedly following the underlying principles 
 of the German Act of 1884, but, unlike its exemplar, it did 
 not establish an insurance fund. This law in effect wrote 
 
 (a) Hansard, Vol. VIII, 19C1 (1893). 
 
170 ACCIDENT PREVENTION AND RELIEF 
 
 Provisions into everv contract of employment, a term makin«- every 
 
 of the Act " » V 
 
 of 1897 employer personally liable to pay limited compensation 
 
 for personal injury received by a workman in the course 
 of employment, except it were due to his own serious and 
 willful misconduct. ^'Whatever the true economic view 
 may be as to the ultimate incidence of hie cost of com- 
 pensation, a burden of greater or less weight was, in the 
 first instance at all events, thrown upon the employer 
 and a benefit conferred on the workman." (a) The lia- 
 bility imposed was independent of fault on the part of 
 either party, and within the limits prescribed in the Act. 
 The amount of compensation was determined, not in an 
 action at law, but either by agreement of the parties ap- 
 plying the terms of the measure to themselves, or, fail- 
 ing in that, by a private arbitrator agreed upon by the 
 parties, or a judge of the county court sitting as an ar- 
 bitrator under a simplified procedure. 
 
 Conditions of No Compensation was payable until disability from 
 
 injury had endured two weeks. Weekly payments then 
 became due proportionate to the degree of disability but 
 in no case exceeding half the weekly earnings of the in- 
 jured man, with a maximum limit of £1 (|5). If the 
 Injury resulted in death, persons within certain degrees 
 of relationship, dependent for their support upon the 
 earnings of the deceased, were entitled to compensation 
 equivalent to his earnings for three years preceding the 
 accident, but not in any case less than £150 (|750) nor 
 more than £300 (?1500), the amount payable to be de- 
 termined within these limits in accordance with the de- 
 gree of dependency of the claimant. 
 
 (a) Report Departmental Committee (1904), p. 12. 
 
BRITISH LEGISLATION 171 
 
 The Act aimed at substantial relief, not complete in- 
 demnity. Compensation was therefore theoretically to 
 continue during disability. Hence provision was made 
 for the revision of the award in accordance with the 
 increase or decrease of the existing disability. 
 
 The Act was professedly of an experimental character scope 
 
 1 1^1,- „ of the Act 
 
 and was expressly connned to seven groups of presumably 
 hazardous industries. It applied to employment on or 
 about a railway, a factory, a mine, a quarry, engineering 
 work, and "a building Avhich exceeds thirty feet in height 
 and is either being constructed, or repaired by means of 
 scaffolding, or being demolished, or on which machinery 
 driven by steam or water or other mechanical power is 
 being used for the purpose of the construction, repair or 
 demolition thereof." 
 
 In 1900 the terms of the Act were extended to agri- 
 culture which included, "horticulture, forestry and the 
 use of land for any purposes of husbandry, inclusive of 
 the breeding of live stock or bees, and the growth of fruit 
 ai^id vegetables.'' 
 
 The remedies existing at common law and by statute 
 were neither abolished nor modified but continued con- 
 currently with the new Act. The injured worker was, 
 however, in theory, compelled to make an election, either 
 to pursue his remedy at law or under the Compensation 
 Act. But it was provided that if he failed in proceedings 
 at common law or under the statute, he could apply to 
 the judge in wliose court his abortive action had failed, 
 for an award of compensation under the Act, subject, in 
 the discretion of the judge, to the subtraction of such 
 costs as were caused bv the legal proceedings. 
 
172 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Repeal of 
 the Act 
 
 Imperfections 
 of the Act 
 of 1897 
 
 It is not essential to examine at length the terms of 
 this measure. It was repealed by the existing legislation 
 of 1906, to which extended consideration is subsequently 
 given. We are, however, deeply interested in the history 
 of its practical effects. For the sweeping extension of its 
 principles following the avowedly tentative adoption of 
 them in 1897 necessarily produces a general impression 
 that the experiment must have fulfilled the hopeful expec- 
 tations of its advocates. The generality of men would like- 
 wise conclude that the Act of 1906 expressed in its terms 
 much experience derived from careful observation of the 
 operation of its predecessor. Let us consider whether or 
 not the facts of the matter give support to such natural 
 presumption. 
 
 Defects of form became evident in the earliest stages 
 of the enforcement of the Act of 1897. Ambiguities of 
 language and contradictory sections hindered and ob- 
 structed its administration and enforcement. Effect was 
 given to its provisions only by what was generally recog- 
 nized as arbitrary and indeed artifical distortion of 
 language. Docks, wharves, quays and even ships were in- 
 cluded by construction Avithin the term "Factory," and 
 workmen found themselves moving in and out of the Act 
 in accordance with the circumstances of their employ- 
 ment. One of the most prominent of English legal au- 
 thorities defied the Society of Architects to determine 
 when a building was "30 feet in height.'^^a) The Court of 
 Appeals was inclined to believe that a loose board thrown 
 upon the roof of a building might, within the terms of 
 
 (a) Ruegg Lectures "Etmploj-er and Workman in England," Lecture 
 V, p. 149. 
 
BRITISH LEGISLATION 173 
 
 the Act, be a ^^scaffolding.'^^^) One distinguished judge, in 
 the course of a decision, scathingly declared : "The Act is 
 drawn in such extraordinary fashion and the methods of 
 arriving at its meaning are so complicated, that it is not 
 easy to deal with it on broad grounds of common sense/' (^) 
 These exasperating and costly errors were widely acknowl- 
 edged and deprecated, but the irritation, expense and de- 
 lay which they caused through many years of litigation 
 remained largely unremedied. They should be full of 
 suggestion in the dangers that attend poor draftsmanship 
 in legislation. 
 
 Errors of language are, however, easily cured; it is 
 those of principle which are difficult to remedy. We are 
 far more interested in the practical operation of these 
 principles than the difficulties which arose from their ex- 
 pression in inapt and artificial language. What does the 
 statistical record of the Act disclose? Did it unduly 
 burden industry? In how many cases was compensation 
 annually paid? How did it affect its beneficiaries? How 
 do the charges in one industry compare with those in 
 others? To what extent is insurance resorted to? These operation 
 
 Act 1897 
 
 and many other inquiries naturally arise in the mind, unrecorded 
 Strange to say, there is no record from which they can be 
 answered. No provision was made in the Act or else- 
 where for the collection of information respecting it. 
 From 1897 to 1904 the only information of its operation 
 is to be had from the records of the county courts, dis- 
 closing the number and nature of arbitrated claims for 
 
 (a) Veazy vs. Chattle, 1 K. B. 494. 
 
 (b) Collins L. J., Hennessey vs. McCabe, L. J. Q. B. 175. 
 
174 
 
 ACCIDENT PREVENTION AND KELIEF 
 
 Creation 
 of the 
 
 Departmental 
 Committee 
 of 1904 
 
 Preliminary 
 Inquiries of the 
 Committee 
 
 compensation, estimated to be less than 6 per cent of the 
 total number of cases in which compensation was paid. 
 The strange spectacle is presented of a proverbially con- 
 servative Parliament enacting legislation of an avowedly 
 experimental character and proceeding to enforce it with 
 no provision for ascertaining the results of the experi- 
 ment. 
 
 Except for the fragmentary administrative information 
 represented in compensation litigation, there is no official 
 source of information respecting the Act of 1897, save 
 the report of the Departmental Committee appointed in 
 1904 to make recommendations respecting the amendment 
 and extension of the Act. This body consisted of five 
 members, including a representative employer, a promi- 
 nent trade union leader, and government officials. It 
 alone possessed, during the term of its existence, power 
 to summon witnesses and gather evidence respecting the 
 working of the Act. From its investigations we should 
 expect to learn the conclusions which led to the legisla- 
 tion of 1906. 
 
 As a preliminary to recommendations concerning the 
 extension of the Act, the Committee undertook to do 
 precisely what we wish to do — "to form some estimate of 
 the way in which this great experiment in legislation had 
 worked; to inquire whether it fulfilled expectations 
 formed some years ago; and what weak points had been 
 disclosed." (^) The Committee gathered information dur- 
 ing some 37 meetings at which a great number of wit- 
 nesses were examined. 
 
 (a) Report Departmental Committee (1004). p. 13. 
 
BRITISH LEGISLATION 175 
 
 This body began by propounding for its own guidance 
 a series of very interesting questions, tlie replies to which, 
 representing the conclusions of the Committee, relate the Questions 
 operation of the Act. Chief among these interrogatories br?he'^^^'^ 
 were the following: committee 
 
 1. ^'Have these Acts (1897 and 1900) in their opera- 
 tion been unduly productive of litigation; if so, to what 
 cause can this result be attributed and how far can the 
 evil be mitigated?" 
 
 2. "Have they tended to prevent the occurrence of 
 accidents in the industries to which they have been ap- 
 plied?" 
 
 3. "How have they affected accident benefit funds?" 
 
 4. "Have they imposed or are they likely to impose 
 an}^ undue burden on the employer?" 
 
 • 5. "Has their operation on the whole been beneficial 
 to the workman?'" (a) 
 
 The Committee began its investigation with the com- 
 plaint that the greatest difficulty arose "from the fact 
 that there w^as no provision in the Act, or elsewhere, for 
 the collecting of statistics as to the working of the Act." 
 
 Proceeding to investigate its First question, the Com- Findings to 
 
 Question One 
 
 mittee found: "various defects both in the Act itself and 
 the machinery by which it is enforced, which in our own 
 opinion gave rise to much preventable litigation." It was 
 of the further opinion that one of the chief causes of 
 litigation was to be found in what it deemed the "un- 
 satisfactory provision," that where the workman failed 
 in an action at law the court may assess compensation 
 
 (a) Report Departmental Committee (1904), p. 13. 
 
176 ' ACCIDENT PREVENTION AND RELIEF 
 
 under the Act, deducting, in its discretion, the costs of 
 the unsuccessful proceeding. ''This,'' said the Committee, 
 "has been found to offer a strong temptation to the less 
 scrupulous class of solicitors to bring speculative actions 
 on behalf of their clients under the Employers' Liability 
 Act, or in some cases at common law, with a view to 
 driving the employer to settle on advantageous terms. 
 * * * We think that this provision has worked largely 
 to the disadvantage of both employer and workman 
 and is responsible for a large quantity of illegitimate 
 litigation.-' (^) The Committee regarded the total volume 
 of litigation as small in comparison with the great num- 
 ber of cases settled by agreement. 
 
 Findings to Responding to the Second question, the Committee 
 
 Question Two 
 
 reached the surprising and it would seem somewhat dis- 
 couraging conclusions in view of the expectations aroused 
 to the contrary by the strong assertions of advocates of 
 the Act, that "No evidence has been brought before us 
 which enables us to find that any great improvement in 
 the direction of safety is to be placed to the credit of this 
 Act. Indeed, some evidence rather points in the opposite 
 direction." (^) The Committee emphasized the fact "that 
 the machinery of German insurance associations is di- 
 rected towards securing greater safety of the workman." 
 And again, in concluding, it is reiterated : "On the whole, 
 therefore, we feel unable to come to the conclusion that 
 the operation of the Compensation Act of 1897 has had 
 
 (a) Report Departmental Committee (1904), p. 19. 
 
 (b) Report Departmental Committee (1904), p. 22. 
 
BRITISH LEGISLATION 177 
 
 any marked or ascertainable effect, one way or the other, 
 upon the safety of the workman." (^) 
 
 Answering its Third query, the Committee responds: Findings to 
 ^^We think that the evidence has shown that their opera- "^^^'°" '^*'^®® 
 tion (the Acts of 1897 and 1900) has been largely to put an 
 end to those societies for accident compensation which 
 previously were supported by the joint contributions of 
 employers and workmen.'' (^) It was concluded that the 
 dissolution of these organizations was due in a great 
 number of instances to the discontinuance of the contri- 
 butions by the employers, who, said the Committee, "can 
 hardly be expected to contribute to these funds as well 
 as to bear the burden thrown upon them by the Act."^^) 
 , The Fourth question impressed the Committee with 
 special gravity, for it said: "Whatever may be the true 
 view as to the incidence of tlie burden of compensation for 
 accidents, it seems plain that if the cost thrown at all 
 events in the first instance on the employer is excessive, 
 the ultinmte loss consequent thereon will fall with equal 
 or greater weight upon the workman, either by the 
 diminution ^of wages, or loss of employment, or loss 
 through the insolvency of the employer.''(d) The evi- 
 dence before the Committee presented urgent need for a 
 clearer definition of the rights and liabilities of employer 
 and employe. "This involves the removal of certain anoma- 
 lies and distinctions, based on no ascertainable prin- 
 
 (a) Report Departmental Committee (1904), p. 23. 
 
 (b) Report Departmental Committee (1904), p. 23. 
 
 (c) Report Departmental Committee (1904), p. 24. 
 
 (d) Report Departmental Committee (1904), p. 25. 
 
178 ACCIDENT PREVENTION AND RELIEF 
 
 ciple, which at present tend to create a sense of in- 
 equality and injustice/'^^) Employers in England as in 
 America, were evidently complaining, not so much of the 
 actual cost of compensation, as that most unsatisfactory 
 of all the conditions, one of uncertainty as to the nature 
 of their liability under the Act. The Comniittee expressed 
 its conclusions respecting the Fourth question as follows : 
 Findings to "1. That the pecuniary burden imposed by the Act 
 
 Question Four 
 
 upon the employer has not been excessive. 
 
 2. But the burden tends to increase especially in 
 consequence of the rapidity at which claims are growing 
 and the burden which is necessarily imposed by the in- 
 creasing number of permanent cases, and that the Act of 
 1897 has not been sufficiently long in operation to permit 
 of au}^ really trustworthy estimate being formed of the 
 limits which this increase will ultimately reach. 
 
 3. That if this last inference is well founded, the 
 greatest caution is required before the personal liability 
 already imposed by the Act on the employer is materi^ally 
 increased, especially by any legislation which may add to 
 the indefiniteness and uncertainty of that liability, unless 
 there are paramount reasons for the suggested change."(^> 
 
 The Comniittee emphasizes in remarkable language its 
 belief in the extreme importance of the functions under- 
 taken by mutual insurance associations of employers : ''If 
 these associations receive further development and more 
 complete organization, and are extended to other in- 
 dustries, the solution of many difficulties which beset the 
 
 (a) Report Departmental Committee (1904), p. 25. 
 
 (b) Report Departmental Committee (1904), p. 3.S. 
 
BRITISH LEGISLATION 179 
 
 working oi tlie Act may be found, which will operate in 
 furtherance of the interests of both employers and work- 
 men." (^) 
 
 The conclusions in reply to the Fifth question were of Findings to 
 
 Question Five 
 
 paramount importance. They determine, and in a special 
 degree, whether or not the Act accomplishes the benefits 
 sought. 
 
 The Committee found little complaint as to the ade- 
 quacy of the compensation provided, but much as to the 
 insufficiency of provisions against the insolvency of the 
 small emploj^er. The latter difficulty was frankly de- 
 clared to be inseparable from any system resting upon 
 the personal liability of the employer. But the most 
 ■serious charge brought against the Act by laboring men 
 themselves Avas that the measure had a marked effect 
 upon the employment of elderly or maimed persons. ^^) 
 Government officials, officers of the largest trade unions, 
 representatives of great industries and employers, and in- 
 surance organizations alike offered conclusive evidence 
 that elderly and defective workmen faced an ever in- 
 creasing difficulty, not merely in retaining their present 
 employment, but in obtaining new employment, because of 
 tlie serious risk which their condition presented under 
 tlie increased liabilities of the Act. ''The evidence," says 
 the Committee, "has led us to the conclusion that the 
 Workmen's Compensation Acts have largely increased the 
 difficulties of old men finding and obtaining employment. 
 
 (a) Report Departmental Committee (1004), p. 33. 
 
 (b) Report Departmental Committee (1004), pp. 3S-S0-40. 
 
180 ACCIDENT PREVENTION AND RELIEF 
 
 We fear that the tendency is for these difficulties to 
 grow. ♦ ♦ ♦ A. somewhat different question arises 
 in reference to diseased, weak, or partially maimed per- 
 sons. In the case of the latter there is distinct evidence 
 that in many cases they are refused employment at their 
 old trade although perfectly capable 'of earning full 
 wages (a) * * * It appears to us that the operation 
 of the Act, as it stands, both as regards old, infirm, and 
 those who have been maimed, has proved a serious draw- 
 back to the advantages which in other respects it has 
 conferred on the workman." (b) 
 Remedies To remedy this serious condition the Committee sug- 
 
 Committee gcstcd that infirm or defective persons should, upon the 
 
 certificate of a medical referee, be permitted to contract 
 out of the Act on special terms as to compensation, due 
 care being had to guard such a provision against abuse. 
 Turning from an examination of the practical opera- 
 tion of the Act, the Committee gave attention to the sub- 
 ject of its amendment. In the course of this task it had 
 occasion to examine the practical operation of the only 
 bar to the recovery of compensation, the serious and will- 
 ful misconduct of the injured person. The Committee 
 commented on the fact that all the representatives of the 
 trade unions who appeared before it could mention but 
 two cases in which the question of serious and willful 
 misconduct had arisen, while it quoted Judge Ruegg, gen- 
 erally regarded in England as perhaps the highest author- 
 ity upon the construction of the Act, as giving his opinion 
 
 (a) Report Departmental Committee (1904), p. 39. 
 
 (b) Report Departmental Committee (1904), p. 41. 
 
BRITISH LEGISLATION 181 
 
 "that it was practically impossible, whatever a man does, 
 to get a finding of serious and Avillful misconduct against 
 him.''(a) 
 
 The Committee was urged to recommend that the 
 period of disability during which compensation was not 
 paid be reduced from two weeks to one, but it sharply 
 refused, declaring "the transference to the employer of 
 the burden of the compensation for the whole or any part 
 of the first two weeks would be a grave departure from 
 the system deliberately adopted by the legislation of 
 1897/'^^) "There are no sufficient reasons to justify us 
 in making any recommendations to this etfect."^^) The 
 C'ommittee attached great importance to the amendment 
 providing for the appointment of a medical referee whose 
 evidence as to the condition of an applicant for compen- 
 sation should be conclusive. It declined to recommend 
 any general extension of the provisions of the Act. 
 
 Throughout the entire I'eport of the Committee flows committee 
 
 Favored 
 
 evidence, continually increasing in volume and strength, insurance 
 
 to Personal 
 
 of the fact that the investigation convinced its members Liability 
 that the whole basis of compensation should be changed 
 by substituting insurance for personal liahiliUj. Re- 
 ferring to the difficulty of affording any certain relief to 
 the workman of the small employer, it said: "That there 
 must always be a serious risk of the insolvency of the em- 
 ployer seems to us an inevitable consequence of the adop- 
 tion of a principle of personal liability instead of that of 
 
 (a) Report Departmental Committee (1904), p. 66. 
 
 (b) Report Departmental Committee (1904), p. 76. 
 
 (c) Report Departmental Committee (1904), p. 76. 
 
Recommen- 
 dation of 
 Compulsory- 
 Insurance 
 as Most 
 Effectual 
 
 182 ACCIDENT PREVENTION AND RELIEF 
 
 compulsory insurance under proper regulations." (^) Again 
 they declare : ^'It appears impossible to guard against this 
 difficulty in a wholly satisfactory manner, unless the se- 
 curity of a solvent insurance fund is substituted for the 
 personal responsibility of the individual employer.'^^^^ 
 The very object of the Act, asserts the Committee, is to 
 provide "an indirect method of compulsory insurance 
 rather than to enforce any ordinary legal obligation." (^^ 
 
 So time after time, as the experience of witnesses de- 
 veloped new perplexities, the Committee falls back upon 
 the insurance fund as the, only, all sufficient remedy. 
 "We anticipate that the remedies under the old law will 
 fall more and more into disuse and that the minds of the 
 legislature will be directed to the improvement or exten- 
 sion of the best form, whether direct or indirect, of com- 
 pulsory insurance." ^^^ "Our difficulties * * * are 
 intensified by the fact that our system of compensation 
 is appearing to rest entirely upon the personal or in- 
 dividual liability of the employer and is not cast upon 
 a fund regulated by special legislative provisions." (®) 
 
 Such are the opinions and conclusions expressed by 
 the only authoritative public body which, between the 
 passage of the Act of 1897 and the advanced measure of 
 1906, undertook to investigate the practical effects of the 
 compensatory principle in the form given it by the 
 British Parliament. 
 
 (a) Report Departmental Committee (1904), p. 38. 
 
 (b) Report Departmental Committee (1904), p. 121. 
 
 (c) Report Departmental Committee (1904), p. 93. 
 
 (d) Report Departmental Committee (1904), p. 93. 
 
 (e) Report Departmental Committee (1904), p. 40. 
 
CHAPTER TEN 
 
 TLe Final Extension of tke Compensation Principle 
 
 TLe Act of 1906, Outline of its Provisions 
 
 and Examination of tke Nature and 
 
 Extent of its Liabilities 
 
CHAPTER X 
 
 The Final Extension of the Compensation Principle 
 
 The Act of 1906, Outline of its Provisions and 
 
 Examination of the Nature and Extent of 
 
 ITS Liabilities 
 
 The Act of 1906 is Great Britain's last and broadest Act of i906 
 
 , . , . /.I i . . . the Latest 
 
 application of the compensation principle. It repealed British 
 the preceding legislation of 1897-1900 except as to claims 
 existing under them. Rights of action at common law 
 or by statute remained unaffected, but subject, as we shall 
 see, to use as alternative but not consecutive remedies. 
 
 We shall briefly outline the Act, examining the nature 
 and extent of its liabilities and its methods of administra- 
 tion, confining our attention to provisions of substantial 
 importance and omitting reference to a variety of minor 
 details. 
 
 The Act provides in effect that every employer, indi- Provisions 
 
 of Act of 1906 
 
 vidual or corporate, in any employment shall be liable to 
 his workmen for personal injury by accident, arising from 
 and in the course of employment, where the injury is of 
 such a character as to disable the workman for at least 
 one week from earning full wages at his employment; 
 provided that the injured workman is not earning more 
 than £250 ($1,250) per year, except he be engaged in 
 
 185 
 
186 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Occupational 
 Disease 
 
 Amount of 
 Compensation 
 
 Contracting 
 Out of the Act 
 
 manual labor, in which event the amount of his earnings 
 is immaterial. No injury is to be compensated if caused 
 by the worker's own serious and willful misconduct unless 
 it results in death or serious and permanent disability. 
 
 Such occupational diseases as are named in the Act, 
 or may from time to time be designated oy the Secretary 
 of State in his discretion, are legally to be considered 
 "accidents" and compensated as such, under conditions 
 hereafter described. Six diseases were specified in the 
 Act and 18 have since been added thereto by order of the 
 Secretary. 
 
 The Act entitles an injured workman during the 
 period of his incapacity to weekly payments which shall 
 not exceed 50 per cent of his previous weekly earnings 
 and in no event more than £1 (f5) per week, the specific 
 amount being determined by the degree of incapacity fol- 
 lowing the injury, the award being subject to diminution 
 or enlargement as disability diminishes or increases. In 
 case of death from injury, "dependents'' named in the Act, 
 and including an illegitimate child or children, are, in 
 accordance with the degree of dependence, entitled to not 
 less than a total of £150 (|750) nor more than £300 
 ($1500), either from the employer or his estate. If the 
 workman leaves no dependents the employer is liable to 
 pay not to exceed £10 (|50) for medical and funeral 
 expense. 
 
 Contracting out of the Act is forbidden except where 
 employer and employe agree to a substitute scheme which 
 the Registrar of Friendly Societies approves, after as- 
 certaining by ballot that a majority of the workmen af- 
 
EXTENSION OF COMPENSATION PRINCIPLE 187 
 
 fected agree to it and that the scheme confers benefits 
 equal to or greater than those of the Act. 
 
 Notice of accident must be given, unless otherwise Notice of 
 
 Accident and 
 
 excused, as soon as practicable after its occurrence and Fiung ciaims 
 before the injured person voluntarily leaves the service of 
 the employer. The claim for compensation, unless ex- 
 cused, must be made within six months from the oc- 
 ♦currence of the accident or the date of death resulting 
 therefrom. 
 
 Compensation awarded mav be enforced by the ordi- '^^^^ ^^ 
 
 ^ c7 .; Collecting 
 
 nary process of execution or by Avhat is known as a com- claims 
 mittal order under the Debtors' Act of 1869, and when 
 paid is not subject to attachment. In the event of the 
 insolvency of the employer, a workman awarded com- 
 pensation is a preferred creditor to the extent of £100 
 (|500), but if an insolvent employer's liability be in- 
 sured, a claim vests in the workman against the under- 
 writer, equal to but not greater than that possessed by the 
 employer on his behalf. 
 
 The administration of the Act contemplates that em- Administration 
 ployer and employe shall, in the first instance, endeavor 
 by agreement to apply its provisions to themselves. In 
 the event of a dispute as to facts or the application of 
 the law, and in that event only, arbitration may be had. 
 For this purpose employer and workman may agree upon 
 a committee or a single arbitrator, or they may apply to 
 a county judge who shall sit as an arbitrator, and who, 
 in the event of his inability to do so, may, with the con- 
 sent of the Lord Chancellor, appoint a substitute to sit in 
 his stead, with such power as he would himself possess. 
 Lay arbitrators may submit questions of law to a county 
 
188 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Revisjpn of 
 Compensation 
 and Medical 
 Examination 
 
 judge. On findings of fact, the decision of the arbitrator 
 is ^iial, but appeal may be had on questions of law to 
 the Court of Appeals, and finally to the House of Lords. 
 
 A Avorkman giving notice of an accident must, if re- 
 quired by the employer, submit to examination by a duly 
 qualified physician provided and i>aid* by the em- 
 ployer. Refusal of such examination or its obstruction 
 suspends the right to prosecute the claim for compensa- 
 tion until such examination takes place. After compen- 
 sation is awarded, the recipient may, at such intervals as 
 are designated in rules made by the Secretary of State, be 
 required to submit to further medical examination by a 
 physician provided and paid by the employer, who may 
 thus ascertain Avhether or not the disability continues. 
 The evidence of a physician making such examinations is 
 not, of course, conclusive as to the workman's physical 
 condition, but upon application signed by hoth employer 
 and workman, and in that event only, the Registrar of 
 a county court may appoint a medical referee whose 
 certificate as to the physical condition of the workman, 
 his fitness for emplo^^ment or the question of whether or 
 not his incapacity is due to the accident described, is 
 conclusive evidence binding upon both parties. Any lay 
 or judicial arbitrator may ask for a report of the medical 
 referee on the physical condition of an applicant for 
 compensation, but except under the conditions described, 
 neither the parties to the controversy nor the arbitrator 
 are- bound by the report. 
 
 A workman may not recover for injury received dur- 
 ing employment both at law and under the Act, but as^ 
 under the Act of 1897, a plaintiff, failing in an action 
 
EXTENSION OF COMPENSATION PRINCIPLE 189 
 
 under the Liability Act or at the common law, may im- workmen 
 mediately ask the judge of the court in which the compensation 
 
 After Action 
 
 ahortive action has been brought, to assess his claim, if one at Law 
 til ere be, under the Compensation Act. In such event, the 
 court may, in its discretion, deduct from the compensation 
 awarded all or part of the costs incurred in the defeated 
 proceeding at law. As a matter of practice, under these 
 •circumstances judges rarely assess more than a moiety 
 of the costs caused by the legal proceeding. It is difficult 
 to understand Avhy this provision was allowed to remain 
 in the Act of 1906 in view of the emphatic protest against 
 it by the Departmental Committee in 1904. "We think,'' 
 said that body, "the poAver to assess compensation after 
 unsuccessful proceedings under the Employers' Liability 
 Act should be repealed. * * * It is no protection 
 whatever to impose upon the workman who fails the obli- 
 gation to pay, or the liability to have a deduction of costs 
 from his compensation. Tlie employer has in practice to 
 bear all his own costs, whether he succeeds or not.'' (a) 
 
 To ascertain the nature and extent of the chief lia- Nature of 
 bilities imposed by the Act, Ave briefly examine the Ian- imposed 
 guage from which the}' arise. Who is a "Avorkman"? 
 W^hat is "personal injury by accident"? When may it be 
 said to arise "out of and in the course of employment''? 
 What conduct, if any, upon the part of the AA^orkman 
 bars recover}' of compensation? The answer to these 
 queries not onl}- enables one to understand, substantially, 
 the character and extent of the obligations created, but to 
 
 (a) Report Departmental Committee (1904), p, 93. 
 
190 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Definition of 
 a "'Worlinian" 
 rnder the Act 
 and "Excepted' 
 Persons 
 
 Meaning of 
 
 "Casual 
 
 Labor" 
 
 realize the legal and practical effect of introducing such 
 terms into our own legislation, where, in conjunction with 
 similar purposes, they would be expected to convey the 
 meaning attributed in the jurisdiction from which they 
 were taken. 
 
 A "workman'' within the meaning of the Act is any 
 person who has entered into or works under a contract 
 of service or apprenticeship with an employer, whether 
 by way of manual labor, clerical work or otherwise. It 
 is not, however, to include individuals in these classes 
 earning more than £250 (|1,250) per year, except from 
 manual labor; or "a person whose employment is of a 
 casual nature,'' except it be for the purposes of the em- 
 ployer's trade or business. A member of the police force, 
 an out-worker or a member of the employer's family in 
 his service but dwelling in his house, are also excluded 
 from the operation of the Act. 
 
 It might seem at first that most "casual labor'' was 
 outside the Act. This, however, is not true. All casual 
 labor serving an employer in his "trade or business" is 
 within the Act. Thus, if a householder employed a person 
 to repair his home, damaged during a storm, he would 
 not be liable to the workman in event of his injury 
 during the job, but if the householder, being a merchant, 
 engaged a person to deliver even a single package or do 
 an errand in the execution of his business, that person, 
 if injured during the employment, would be within the 
 Act. It is the iemployment of the individual which must 
 be casual and not the work. Thus a washerwoman ac- 
 customed to come certain days in each week and do 
 
EXTENSION OF COMPENSATION PRINCIPLE 191 
 
 laundry work is not casual labor, (a) while a window casual 
 
 Labor 
 
 cleaner, given a chance job, is casual labor, (b) Further- illustrated 
 more, it is the trade or business of the employer and not 
 of the person employed which may determine the applica- 
 tion of the Act. Tlius a traveler engaging a porter to 
 carry his bag to or from a train employs him for a pri- 
 vate purpose with reference to the traveller, although it 
 is the regular business of the porter, and the porter 
 would not be within the Act, if injured. If, however, the 
 traveler, being engaged in selling goods, hired the porter 
 to carry a bag containing samples or wares, with the aid 
 of which business w^as transacted, the injur}- of the porter 
 during such employment by an accident arising from it, 
 would probably render the traveler liable. Every person 
 given chance employment for however brief a period, in 
 pursuance of the employer's business, is Avithin the Act. 
 Every person working under a contract of service or ap- 
 prenticeship, written or implied, is within the Act unless 
 he is specifically excluded from it.(c) 
 
 No one has yet undertaken to enumerate all the 
 classes of workmen coming within the scope of the Act. 
 It has been roughly estimated that some thirteen millions 
 of the population of Great Britain are within its terms. 
 One distinguished British legal authority has offered a 
 partial list of the classes of workmen included under the 
 Act, expressly insisting, however, that his list is illustra- 
 tive and not exhaustive. He embraces within the measure: 
 
 (a) Dewhur^t vs. Mather, 2 K. B., 7.54 (1908). 
 
 (b) Hill vs. Begg, 2 K. B., 802 (1908). 
 
 (c) Ruegg Workmen's Compensation, 8th ed., 273. 
 
192 ACCIDENT PREVENTION AND RELIEF 
 
 Occupations 1. Kailwaj servants. 
 
 -within the 
 
 Scope of 2. Workmen in factories and workshops, inclnding 
 
 the Act 
 
 docks, wharves, quays, warehouses, etc. 
 
 3. Workmen in mines. 
 
 4. Workmen in quarries. ^ 
 
 5. Workmen in engineering Avork. 
 
 6. Workmen in building work. 
 
 7. Workmen in agriculture. 
 
 8. Servants and assistants in shops, inns, hotels, pub- 
 lic houses. 
 
 9. Domestic or menial servants. 
 
 10. Seamen (subject to the special provisions of the 
 Act). 
 
 11. Drivers and conductors of public vehicles. 
 
 12. Clerks in banks, insurance or trading olflces (sub- 
 ject to limitation as to salary). 
 
 13. Clerks, assistants, messengers in government, county 
 or municipal offices. 
 
 14. Persons engaged in the management, driving or con- 
 trol of horses or other animals, or automobile conveyances. 
 
 15. Persons in the permanent employ, under contract of 
 service, of hospitals and other philanthropic institutions. 
 
 IG. Persons in the permanent employ, under contract of 
 service, of religious establishments, colleges, or schools, 
 besides many other smaller classes too numerous to men- 
 tion, (a) 
 
 (a) Riiegj? Employers' liability, etc., 8th ed., p. 28.5. 
 
EXTENSION OF COMPENSATION PRINCIPLE 193 
 
 To these may be added professional players taking 
 part in sports and games. In this country the term 
 would include baseball players. (^) 
 
 In connection with the term ^'workman" it should be compensation 
 
 Under the Act 
 
 noticed that the compensation awarded under the Act is Determined 
 
 "by "Earningrs" 
 
 determined by the ^'earnings" of the workman at the time 
 of injury. This is a broader term than either wages or 
 salary, for it may include not only pay, but the value of 
 any benefit or privilege arising from the employment, 
 such as the rental value of a house which the workman 
 is permitted to occupy in the course of his employment, 
 or supplies or other things which were part of his re- 
 muneration. Even gratuities habitually received in the 
 employment are part of the "earnings." (b) More than 
 that, the "earnings'' of an injured person are to be de- 
 termined not merely by what he receives from the em- 
 ployer in whose service he was injured, but in addition 
 thereto, Avhatever he may have earned in other "con- 
 current'^ employments. Thus, if he worked part of the 
 day for one employer and served as night watchman for 
 another, his "earnings'' would be estimated by his income 
 from both employments. (^^ Indeed, if he be in the con- 
 current service of a number of employers, the one in the 
 course of whose employment he is injured must, if liable, 
 compensate him, not on the basis of his "earnings" with 
 that employer alone, but on the basis of his "earnings" 
 from all concurrent employment. (^) 
 
 (a) Walker vs. The Crystal Palace Football Club, 1 K. B., 87 (1910). 
 
 (b) Penn vs. Spiers & Pond, 1 K. B., 7GG. 
 
 (c) Bevin Workman's Compensation, p. 546. 
 
 (d) Dewhurst vs. Mather, 2 K. B. ITA (1908). 
 
When 
 "Accident" 
 "Arises Out of 
 and in the 
 Course of 
 Employment" 
 
 194 ACCIDENT PREVENTION AND RELIEF 
 
 The words "arising out of and in the course of em- 
 ployment" might, on their face, cause a layman to suspect 
 that the measure provided for injuries received away 
 from work as well as when engaged in it. But this is not 
 
 its intention, we are assured, however far some decisions 
 
 . t 
 
 may seem to go. 
 
 The locality in which an injury is received is im- 
 material, provided the injured person is pursuing his em- 
 ployment. It is not necessary that he should actually be 
 at work. He is covered by this provision of the Act on 
 his way to the pay office of the employer (^) or returning 
 from it to his work, even though, in the latter case, he 
 should get on the wrong street car and in correcting his 
 ^mistake be knocked down by a passing wagon. (^) This 
 provision further protects him from the time of arrival 
 upon the employer's premises, for a reasonable period be- 
 fore going to work^*^) and likewise on leaving the em- 
 ployer's premises at the conclusion of his work^^) even 
 though he does not use the usual way.^®) If a domestic 
 servant loses her life in an accidental fire which destroys 
 the house of the employer, in which she is sleeping, her 
 death arises out of the course of her employment and her 
 dependents are entitled to compensation, (f) 
 
 Two instances may serve to suggest the novel cases 
 which have arisen under this provision and the distinc- 
 
 (a) Lowry vs. Sheffield Coal Co., 24 T. L. R. 142 (1907). 
 
 (b) Nelson vs. Belfast Corporation, 42 Ir. L. T. 223. 
 
 (c) Lowless vs. Wigan Coal & Iron Co., Ltd., 124 L. T. Jour.' .532 
 (1908). 
 
 (d) Cremens vs. Guest Keen & Nettleford, 24, T. L. R. 1S9 (1907). 
 
 (e) McKee and Others vs. Great Northern R. R. Co., 42 Ir. L. T. 132 
 (1908). 
 
 (f) Chitty vs. Nelson, 126 L. T. J. 172 (1908). 
 
EXTENSION OF COMPENSATION PRINCIPLE 195 
 
 tions observed in construing its terms. A lady's maid, instances 
 
 Showing 
 
 while sewing for her mistress near an open window, was Distinction 
 
 in Application 
 
 startled by a ^^cockehafer," a large insect, which flew of Terms 
 through the window. Instinctively throwing up her hand 
 at its approach, the maid struck her eyeball with her 
 own thumb, resulting in a serious impairment of the 
 vision. She applied for compensation, and it was held 
 that while the injury occurred ^'in the course of employ- 
 ment,'' it did not "arise out of it." (a) A teamster, while 
 lunching on his employer's premises, was bitten by the 
 stable cat. Blood poisoning ensued and two fingers were 
 subsequently amputated. This was held by the Court 
 of Appeal to be an accident '^arising out of and in the 
 course of employment," although the Court intimated 
 that the decision might have been otherwise had it been 
 shown to be "a strange cat."(b) 
 
 A summary of the principles governing the applica- 
 tion of this phrase is j^resented by Judge Ruegg, whose 
 volume on the Compensation Act of 1906 is the standard principles 
 
 Governing- 
 authority. He concludes: Application of 
 
 This Language 
 
 1. That the onus of proving both that the accident 
 arose out of, and in the course of the employment, rests 
 upon the applicant. 
 
 2. That the accident does not arise out of and in the 
 course of the employment, if it is caused by the workman 
 doing something entirely for his own purposes; or 
 
 3. The same result follows when the w^orkman does 
 something which is no part of his duty towards his em- 
 
 (a) Crdske vs. Wegan, 100 L. T. 8 (1909). 
 
 (b) Rowland vs. Wright, 24 T. L. R. 852 (1908). 
 
196 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Instances 
 Where 
 
 Liability May 
 or May Not 
 Exist 
 
 ployer, and which he has no reasonable grounds for think- 
 ing it was his duty to do. 
 
 4. The accident may arise out of and in the course of 
 the employment, if the act which occasioned it, although 
 not strictly in the scope of the workman'^ employment, is 
 done upon an emergency. 
 
 5. It may be said to arise out of the employment if, 
 it being the workman's duty to do the act, the accident 
 arises from his doing it in an improper manner. 
 
 6. It may arise out of and in the course of the em- 
 ployment, if occurring on the employer's premises, when 
 the workman has not actually commenced his work, or 
 after he has finished. 
 
 7. It may arise out of and in the course of the employ- 
 ment, if, the workman's duties not being clearly defined, 
 he may reasonably have thought it a duty to do the thing 
 in the course of which the accident occurred. 
 
 8. It does not arise out of and in the course of the 
 employment, if occasioned by the willfully tortious act of 
 a fellow-servant, when the risk of such an act cannot be 
 said to be one of the risks incidental to the service. 
 
 9. It may arise out of and in the course of the employ- 
 ment if, though occasioned tortiously, even willfully, by 
 the act of a third party, the risk of injury from such acts 
 is found to be one of the risks incidental to the employ- 
 ment, (a) 
 
 (a) Ruegg Employers' Liability (8th ed.), P- 373. 
 
EXTENSION OF COMPENSATION PRINCIPLE 197 
 
 Probably the most extensive and indeed startling de- "Personal 
 
 Injury by 
 
 grees of liability arise from the construction of the term Accident" 
 "personal injury by accident.'' This language is identical 
 witli that contained in tlie preceding Act of 1897, which 
 had resulted in mau}^ conflicting decisions. This Avas 
 doubtless due in part to the fact that the Courts of Appeal 
 usually supported the finding of an arbitrator as to 
 Avhether a particular occurrence was or was not an acci- 
 dent, this on the ground that it was a question of fact and 
 not of law. This difficulty was removed at a later date 
 by a decision of the House of Lords that the meaning of 
 "accident,'' Avhen applied to ascertained facts, was a ques- 
 tion of laAv.(a) 
 
 The earlier decisions seem likewise inclined to hold 
 that it must be shown that tlie injury for which compensa- 
 tion was asked found its proximate and immediate cause 
 in the accidental occurrence. Thus a number of instances 
 were presented in which strain and over-exertion accel- 
 erated pre-existing diseases or Avas merely the occasion of 
 disability'. Thus we find in these earlier cases such occur- 
 rences as these : 
 
 A boy at work in a mine is frightened by the colliery 
 cat. He develops St. Vitus' Dance, and it is held to be an 
 accident. A mouse runs up a miner's leg, bites him, and 
 blood poisoning ensues, held not to be an accident. A 
 workman, in the ordinary course of his duties, lifts a 
 heavy beam, as he has been accustomed to doing, and in 
 balancinjr it strains the muscles of his back, causing dis- 
 
 (a) Fenton vs. Thorley & Co. Ltd., 19, T. L. R. ().S4. 
 
m^ 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Early Difficul- 
 ties of Inter- 
 pretation 
 
 Authoritative 
 Interpretation 
 of "Accident" 
 
 ability, Iield to be an accident, (a) A workman undertakes 
 to start a gas engine in the course of his employment, finds 
 the wheel somewhat hard to turn owing to disuse, and in 
 the midst of his exertions vomits blood and afterwards 
 dies. Medical evidence was offered to show that death was 
 due to the diseased condition of the man s body and not 
 to the strain, and while the court held the death to be due 
 to disease, it considered it to be accelerated by the strain, 
 but refused to hold the occurrence an "accident." (b) 
 Shortly afterwards, the same Court of Appeal found that 
 a workman who ruptured himself while lifting some planks 
 in the usual course of his employment, suffered an injury 
 "by accident'' in the meaning of the Act.(c) 
 
 A similar case was at length presented to the House of 
 Lords for final decision, (d) A workman, in turning the 
 wheel of a machine during the course of his employment, 
 over-exerted and ruptured himself. The House of Lords 
 held that the word "accident" was to be given an "ordinary 
 and colloquial" meaning and defined it as an "unlooked 
 for mishap or an untoward event which is not expected or 
 designed." "It means," said one of the Law Lords, "any 
 unintended or unexpected occurrence which produces hurt 
 or loss." "This case," says Judge Reugg, "is authority for 
 the proposition that an accident need not be a fortuitous 
 occurrence in the sense that if the true facts had been 
 known it was a natural result of the thing done or at- 
 tempted." (a) 
 
 (a) Boardman vs. Scott & Whitworih, 1. K. B. 43. 
 
 (b) Hensey vs. White, 1. Q. B. 481. 
 
 (c) Timmins vs. L^eds Forge Co.. 10 T. L. R. 521. 
 
 (d) Fenton vs. Thorley & Co. Ltd., 19 T. L. R. C,^. 
 
EXTENSION OF COMPENSATION PRINCIPLE 199 
 
 In 1905, a workman employed in sorting wool was in- 
 fected with anthrax from contact with the sheep hides. 
 He died and compensation was refnsed in the lower courts inclusion of 
 
 Infectious 
 
 on the *>ronnd that his death was due to disease. On i^^sease as 
 
 ^ "Accident 
 
 appeal to the House of Lords, this infection was held to 
 be "personal injury by accident.- '(^) There was a strong 
 dissent by a minority of the Law Lords, who declared that 
 the decision involved holding that all diseases caught by 
 workmen in the course of their employment were to be re- 
 garded as "accidents." Doubtless, as a result of this de- 
 cision, occupational diseases were included in the Act of 
 1906 by specific description, but the case remains an au- 
 thority for the inclusion of infectious and possibly con- 
 tagious diseases within the term "accident." 
 
 lUit "accident" was logicall}^ marching to a still more 
 far-reaching application. In March, 1910, the following 
 
 Injury 
 
 striking case was presented to the House of Lords: A Accelerating 
 
 Diseased 
 
 workman, in the ordinary course of his emplovment, was condition iieid 
 
 to be "Personal 
 
 engraved in tiahteninir a nut Avith a wrench. His task injury by 
 
 'te^^te'-'^'^ ^*' i.^^iii^iiiiij_, 
 
 Accident" 
 
 admittedly required only ordinary exertion, but in this 
 instance that amount of exertion contributed to a rupture 
 of the aorta, resulting in the man's death. The admitted 
 facts presented in the higher court showed the man to be 
 suffering from a heart affection which had reached such 
 an advanced stage that any slight exertion was likely 
 to produce a rupture, or it might have occurred during 
 the man's sleep. The county judge refused compensation 
 
 (a) Ruegg Employers" Liability, Sth ed., p. 318. 
 
 (b) Rrintons Ltd. vs. Turvey, T. L. II. 444 (lOOr.). 
 
200 ACCIDENT TREVENTION AND RELIEF 
 
 on the ground that death was due to disease and not acci- 
 dent. The Court of Appeals sustained the finding. The 
 House of Lords, despite a strong dissenting opinion, lield 
 that the workman had died from personal injury by acci- 
 dent, within the meaning of the Act. (a) The prevailing 
 opinion lays down a principle pregnant with extreme lia- 
 bility ^^that an accident arises out of the employment when 
 the required exertion producing the accident is too great 
 for the man undertaking the work, whatever the degree 
 of exertion or the condition of health." 
 
 The consequences of this opinion become more apparent 
 Dissenting from reading a brief extract in the dissenting opinions of 
 
 Opinions of 
 
 Law Lords Lords Atkiusou and Shaw : 
 
 ^^The death of the deceased,'' says the former, "so 
 it appears to me, was no more an accident than if, 
 had he been a butler, he died walking slowly up the 
 stairs in the house in which he served, or, had he 
 been a coachman, he died while slowly mounting 
 to his box. It may be possible that it would be bet- 
 ter in the interest of the workmen that they should 
 be entitled to compensation for all injuries which 
 arise out of and in the course of their emploj-ment 
 however caused, though it is far from clear, since 
 it might result in depriving of employment all who 
 in any way are unsound or past their prime; but 
 while the word ^accident' remains in the statute, 
 force and meaning must be given to it in construing 
 the statute, and, much as one may sympathize with 
 the claimant, I, for my part, was unable to see that 
 
 (a) Hughes vs. Clover, Clayton & Co., 25 T. L. R. 760 (1909). 
 
EXTENSION OF COMPENSATION PRINCIPLE 201 
 
 anything which Avas not normal and most probable, 
 • if not certain^ befell the deceased." 
 
 Lord Shaw concludes thus : 
 
 "On these facts I am of the opinion that this 
 workman did die of heart disease. There was noth- 
 ing unusual or abnormal in the work, no strain 
 more than the ordinary was imposed or involved; 
 no occurrence took place to intercept or even dis- 
 turb the work or the workman ; all that can be said 
 is that being at work and diseased, he died. His 
 death was caused, in my view, not by any injury 
 by accident but simply by the disease under which 
 he unhappily suffered.'' 
 Up to this point personal injury by accident had at 
 least required the causing or occasioning of some direct 
 objective injury to the body. Within the past few months, 
 the Court of Appeals has held that personal injury by ac- 
 cident may result from mental shock or fright received Mental shock 
 
 . 1 OJ* Fright 
 
 m the course of employment. A miner, while at work, Held to be 
 
 "Accident" 
 
 heard an outcry from an adjacent chamber. Hurrying to 
 the point, lie found a workman partially covered by a fall 
 of rock, unconscious, severely injured, and his head 
 covered with blood. The rescuer hurried the wounded 
 man to the surface, Avhere he died. Subsequently, the 
 rescuer alleges that he was so affected by the appearance 
 and peril of his fellow employe that he was incapacitated 
 from further employment, and this occurrence the Court 
 of Appeals held to be personal injury by accident, (a) 
 
 (a) Yates vs. South Kirby, Folkestone & Ilauswick Collieries Ltd., 70 
 L. J. K. B. 1035 (July 1910). 
 
202 ACCIDENT PREVENTION AND RELIEF 
 
 From these decisions it becomes apparent : 
 Summary of 1. That the eniph)yer must pay compensation not only 
 
 Principles f<>i* disability or death, of whicli injury received in the 
 
 course of employment may be the direct and proximate 
 cause, but for disability or death to which such injury 
 may have been only a contributing factor* or a remote or 
 indirect cause or condition. 
 
 2. Tlmt whatever be the physical condition of the 
 workman, the employer is liable for any disabling effect 
 produced upon him by the normal conditions of his em- 
 ployment and for death resulting from pre-existing disease, 
 if even a normal circumstance of emplo^anent accelerates 
 its fatal termination. 
 
 3. The employer is liable for infection received from 
 materials handled in the course of emplo^^nent, exclusive 
 of the special provisions for occupational diseases. 
 
 4. The employer is liable for the consequences of 
 nervous or mental shock to a workman when arising from 
 the circumstances of his employment. 
 
 Subject to the provisions with respect to industrial 
 diseases, the employer is not liable for disease gradually 
 contracted in the course of employment, (a) but we cannot 
 more than conjecture whether he would be liable for con- 
 tagious disease contracted from a fellow Avorker, or sudden 
 sickness arising from exposure to the elements under the 
 normal conditions of his employment, even though such 
 exposure would not be likely to harmfully affect a nor- 
 mally healthy person. The liability created by the phrase 
 "personal injury by accident," while vastlj^ greater than 
 
 (a) Steel vs. Cammell, Laird & Co., 2 K. B. 232. 
 
 Broderiok vs. London Co. Council (1008), 2 K. B. 807. 
 
EXTENSION OF COMPENSATION PRINCIPLE 203 
 
 that under similar language at the common law or by 
 statute, or in popular acceptance of the term, is as yet 
 incapable of definite limitation. Practically it covers 
 much disability of Avhich disease and not accident is the 
 actual cause. It comprehends many contingencies, such 
 as death from a lightning stroke suffered by a bricklayer, 
 (^hhat could not have been in the mind of the most ex- 
 treme advocate of compensatory relief, and is still capable 
 of indefinite extension. 
 
 "Serious and willful misconduct" on the part of the in- "serious and 
 
 Willful 
 
 jured person bars recovery of compensation only when tlie Misconduct" 
 injury "does not result in serious and permanent disability 
 or death." The workman's right of recovery is therefore 
 in inverse proportion to his care for himself and others. 
 Suicide would doubtless bar recovery, as it would neither 
 be an "accident," nor could it probably be said to "arise 
 out of and in the course of employment," but short of self- 
 destruction, no act of the workman prevents compensation 
 if resulting injury causes death or permanent disability. 
 This limitation upon liability ma^^ therefore be urged as a 
 defense only to claims based upon tcmporanj disability. 
 Even in these cases it has been pointed out that the mis- 
 conduct, to bar compensation, has been defined in con- 
 junctive and not alternative form. It must be both serious 
 and willful. 
 
 In the judgment of the House of Lords whetlier or not 
 misconduct is "serious" is to be determined from its nature 
 and not from its consequences. ^^^ Thus if a person be 
 
 (a) Andrew vs. Faihvorth Industrial Soc, 2 K. B. 32. 
 
 (b) Johnson vs. Marshall, Sons & Co. Ltd., 22 T. L. R. 5G.J 
 
204 ACCIDENT PREVENTION AND RELIEF 
 
 seriously injured through disobedience of a trivial rule, 
 the misconduct will not be deemed "serious'' although its 
 consequences to the injured person are serious. Thus the 
 courts have refused to hold that it was "serious miscon- 
 duct" to use appliances or property forbidden by the em- 
 ployer or even that every breach of a statiitory duty was 
 "serious misconduct.- '^^) The courts have, however, 
 shown a strong inclination in considering a charge of 
 serious misconduct to regard the effect of the injured per- 
 son's action in exposing others to peril. But under the 
 limited power which the court possesses to penalize mis- 
 conduct, however it may expose others to death or injury, 
 it can but slightly discourage reckless action. (^) 
 
 Recklessness rpj^^ most scrious iustauces of the effect of this pro- 
 
 No Bar to 
 
 Compensation yisiou ucvcr rcach a public record, for the more serious the 
 consequences of misconduct to the injured individual, the 
 more certain becomes his compensation. If a boiler was ex- 
 ploded through the criminal carelessness of an intoxicated 
 engineer or fireman, it might demolish the plant, bring 
 ruin as well as death to the employer, fatal or serious in- 
 jury to many employes, but the cause of the catastrophe, 
 if disabled for life or killed, would find himself or his de- 
 pendents a preferred creditor against the employer's es- 
 tate, and his claim would be on the same footing with that 
 of his fellow^ workmen to whom he had brought death or 
 injur3^ No sound sj^stem of law can afford to tolerate, 
 much less encourage, personal recklessness, nor can it be 
 either just or even decent to make an individual liable 
 for the consequences of that misconduct in another which 
 
 (a) Johnson vs. Marshall, Sons & Co. Ltd., 22. T. L. R. 565 (1906). 
 
 Also, George vs. Glasgow Coal Co., 25 T. L. R. 57 (1909). 
 (b) Bist vs. London & S. W. R. R. Co., A. C. 209. 
 Brooker vs. W'arren, 23 T. L. R. 201. 
 
EXTENSION OF COMPENSATION PRINCIPLE 205 
 
 ^lo liimian effort can avoid. It is not onl}^ a principle ab- 
 horrent to justice and moralit}', but from the mere stand- 
 point of expediency, it defeats one of the primary pur- 
 poses of all compensatory legislation — the lessening of 
 the number and degree of accidents. It illustrates as 
 powerfully as any single circumstance can how insistently 
 the English legislation strives to. make some one person- 
 ally liable for every injury received at Avork, and how little 
 effort is made to avert the consequences it would alleviate. 
 
 The Act of 1906 includes certain industrial diseases compensation 
 
 for Industrial 
 
 arising out of employment and provides, where they occur, Disease 
 that they are to be legally considered in accordance with 
 their effect, as personal injury, or death, caused by ac- 
 cident. Six diseases were specified in the Act, and the 
 Secretary of State was given wide power to make orders, 
 adding other diseases to those enumerated. Under this 
 power he has added eighteen to the first six, making twenty- 
 four occupational diseases for which compensation may be 
 had. (a) 
 
 To claim compensation under these provisions, the dis- 
 ease must : 
 
 1. Be one named in the Act or subsequent orders of 
 the Secretary of State. 
 
 2. The workman must have been suspended from his 
 work on account of having contracted such disease, under 
 special regulations which have been provided; or 
 
 3. It must be certified by a physician appointed for 
 the district in which he is employed that he suffers from 
 one of the enumerated occupational diseases, which dis- 
 ables him from earning full wages; or 
 
 (a) Statutory Rules & Orders 1007. No. 407. 
 
206 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Proceedings 
 for Compens 
 tion Subject 
 to no 
 Limitation 
 of Time 
 
 Admirable 
 Administration 
 of Act by 
 British Judges 
 
 Protection of 
 "Lump Sum" 
 Payments 
 
 4. In case of death, it must be shown that it was caused 
 by such disease. ^^^ 
 
 It should also be noticed as a contributing element 
 to the uncertainty of liability that while there is a limit 
 of time, subject to extension within the discretion of the 
 arbitrator, within which notice of accidents must be given 
 and claim for compensation made, there is no limit of 
 time within which proceedings to establish a claim for 
 compensation must be brought. The workman having as- 
 serted his claim may attempt to enforce it whenever he 
 pleases. 
 
 The administration of the Act presents some admirable 
 features. Employer and employe are left in the first in- 
 stance to apply its terms to themselves. Until they have 
 failed to do so, there is no dispute of which a court can 
 take notice. Even then it cannot do so as a court, but 
 only as a tribunal of arbitration. The parties are free to 
 select their own arbitrator, but as a matter of practice, 
 substantially all arbitrations are had in the county courts, 
 and the promptness and dispatch with which claims are 
 adjusted present an enviable example of the very high 
 character of British judicial efficiency. 
 
 Under a practice which has become an established cus- 
 tom in the supervision of lump sum payments, county 
 court judges have become the trustees of large sums paid 
 into their courts for the benefit of dependents. To pro- 
 tect the interest of minor children and prevent the dis- 
 sipation by parents or guardians of money awarded partly 
 for their benefit, county court judges exercise a wide dis- 
 cretion in supervising the expenditure of lump sum pay- 
 ments. While the control of these funds by the courts is 
 
 (a) Ruegg Employers'" Liability, 8th ed., p. 330. 
 
EXTENSION OF COMPENSATION PRINCIPLE 207 
 
 •a protection against their dissipation, it nevertheless il- 
 lustrates the nndesirabilit}' of permitting lump sum pay- 
 ments instead of fixed instalments, variable only under 
 unusual circumstances, for the ascertainment of which 
 due provision is readily made. 
 
 The execution of the Act is supposed to be aided by a 
 number of supplementary rules and forms, much more 
 complex than seem desirable. Mr. Thomas Beven, whose 
 work on "Negligence" has been a standard authority at 
 the English bar for many years, criticizes this feature of 
 the legislation in the following language: 
 
 "The Workmen's Compensation Act was at first supplementary 
 intended to be so simple that a workman, without criticized 
 aid or counsel or solicitor, should be able to get the 
 advantage it gives him from his employer. To 
 work out this object, a power to make rules is given 
 to a body of county court judges. Tlieir first effort 
 in simplifying produces 85 rules, some of which 
 meander through pages of print, and are made, if 
 it were possible, more intolerable by 67 forms at- 
 tached to them by way of appendix. Then, within 
 a twelve-month, pages more of rules and forms are 
 produced. The Treasury joins in showering its 
 benefit of rules on the workman, and so does the 
 Home Secretary, and so do Treasury and Home 
 Secretary jointly, and so does the Registrar of 
 Friendly Societies.'' (a) 
 The administrative features of the Act, particularly 
 its provisions for arbitration, are full of instructive sug- 
 
 (a) Beven on Workmen's Compensation, 4th ed., Preface XIII. 
 
208 ACCIDENT PREVENTION AND RELIEF 
 
 gestion, but the liabilities which it creates go far beyond 
 Summary the legal disabilities which it sought to remove. Techni- 
 
 callj, its language suffers from the uncured defects ap- 
 parent in the Act of 1897, for, in the words of the Law 
 Lords, the Act "does not seem to have had the benefit of 
 careful revision." (a) But what is far m#re serious than 
 verbal deficiencies, it betrays, as we have seen, elements 
 of grave injustice. It fails to provide a single liability, 
 holding in the background the speculative threat of pro- 
 ceedings at the common law or by statute. It covers in- 
 validity whilst aimed at accident. The obligations it 
 creates are vast but indefinite, certain only in the gravity 
 of their burden and the surety of their capacity for in- 
 determinate extension. It is axiomatic that want of cer- 
 tainty as to the nature and extent of the liability it creates 
 is the most serious and costly defect of any legislation. 
 It weighs more heavily than high but definite obligation, 
 for the greater the uncertainty of statutory duty, the more 
 rapidly do insurance premiums rise to cover the contin- 
 gencies of its future interpretation and expansion. 
 
 (a) Fenton vs. Thorley & Co. Ltd., A. C. 448. 
 
CHAPTER ELEVEN 
 
 Gritisn Compensation Statistics. Tke Neglect to RecorJ 
 
 tlie Operation of tLe Earlier Acts Incompletely 
 
 Remedied oy Partial Information Required 
 
 Concerning tLe Act of 1906 
 
CHAPTER XI 
 
 British Compensation Statistics. The Neglect to 
 
 Record the Operation of the Earlier Acts 
 
 Incompletely Remedied by Partial 
 
 Information Required Concerning 
 
 THE Act of 1906 
 
 We turn from consideration of the chief provisions of 
 the Compensation Act eager to learn the effect of their 
 application. We have observed that in Germany and gen- 
 erally throughout Europe, each step in the course of legis- 
 lation proceeds from carefully compiled information which 
 is being continually renewed. The Briton began by avow- 
 edly experimenting with unfamiliar principles. Let us 
 notice the provision made for observing the manner in 
 which tlie experiment worked, the quality of the data 
 gathered, the extent of the field which it covered and the 
 light which it throws upon the operation of these prin- 
 ciples. 
 
 In 1908 the British Home Office thus comments upon "Home office* 
 
 Commentary 
 
 the existing record of ten years of compensation experi- on statistics 
 
 ence : 
 
 Act of 1897 
 
 "The ten volumes of statistics issued under the 
 earlier acts of 1897 and 1900 had reference to only 
 the seven groups of industries to which these acts 
 applied, and to causes of injury or accident occur- 
 
 211 
 
212 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Lack of 
 Statistical 
 Data 
 
 Respefcting 
 Operation of 
 Act of 1897 
 
 ring in these industries; and the information given 
 was, in the absence of any way of requiring returns 
 from employers, limited to such information as to 
 the administration of the Act as could be obtained 
 from the county courts." (^) 
 This statistical fragment was then th% only record of 
 the operation of the Act of 1897 in the possession of the 
 Government, beyond the report of the Departmental Com- 
 mittee of 1901, yet there is little evidence that the con- 
 clusions and recommendations of the committee exercised 
 much influence on the provisions of the Act of 1906. 
 Against its recommendations the waiting period, during 
 which compensation was not paid, was reduced from two 
 weeks to one, with' corresponding increase of liability, and 
 the maimed and elderly were left to struggle for employ- 
 ment under distressing conditions, which the committee 
 pointed out and without the mitigating remedies it ad- 
 vised. Against the strongly expressed opinions of the 
 committee, new liabilities of an indefinite nature were 
 added to anomalies and vague obligations which were 
 criticized. Even the complete failure to make any pro- 
 vision for compiling information of the operation of the 
 Act remained uncorrected until 1907, when the defect was 
 for the first time partially but incompletely remedied. 
 As the Home Office report of 1908 admits, prior to that 
 year there was no record of even the cases in which com- 
 pensation was paid, beyond that small number, estimated 
 between some six and seven per cent of the whole, which 
 became, during the course of a year, the subject matter 
 of litigation. Of the 93 or 91 per cent in which an award 
 
 (a) Statistics of Compensation, etc., during 1909 (Home Office) cd. 
 
 4S94. 
 
BRITISH COMPENSATION STATISTICS 213 
 
 was agreed upon by the parties concerned, there is no re- 
 port. Tlie number and character of such cases is only to 
 be conjectured from individual estimates based upon the 
 incomplete records of the insurance companies ; their num- 
 ber can merely be guessed at, their story is lost. From 
 1897 to 1908 all that one would seek to know^ concerning 
 the consequences of a great piece of social legislation must 
 be gathered from indiscriminate private sources. No pub- 
 lic record exists from which can be gleaned the pecuniary 
 burden placed upon general or specific employments, the 
 proportionate cost of insurance to compensation paid, the 
 ratio of injury in the industries affected, or any of those 
 essential circumstances which could give knowledge of 
 how the experiment worked. The possession of such data, 
 their compilation, analysis and study would alone seem to 
 have provided a guide to the further extension of tentative 
 legislation. But no such statistics w^ere had during ten 
 years; although the defect was pointed out no attempt 
 was made to remedy the condition. The Act of 1906 can 
 therefore be said to have extended its principles to prac- 
 tically all employments, without detailed knowledge of the 
 effects which had been produced within the prior area of 
 their activity. 
 
 The new measure, however, offered evidence of a public 
 
 Provision for 
 
 recognition of the statistical deficiencies we have noticed, compiling 
 
 Information 
 
 It contained a provision requiring employers ^'to make re- Respecting- 
 turns as to the number of injuries in respect to which 
 compensation was paid, the amount of compensation and 
 such other particulars as the Secretary of State may by 
 order direct." (^) Thus an opportunity was afforded for the 
 accumulation of complete detailed information. But the 
 
 (aTSec. 12. 
 
214 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Information 
 Required Only 
 from Limited 
 Number of 
 Industries 
 
 Secretary of State, despite the fact that the new legisla- 
 tion covered practically every employment in Great 
 Britain, confined, and continues to confine, requirement 
 and request for information to seven groups of industries, 
 namely: Mines, quarries, factories, harbors, docks, con- 
 structional work and shipping, excluding from the last 
 sailing vessels in the sea-fishing service, and from "con- 
 structional work," the whole field of activities included in 
 the erection, repair and demolition of buildings. This de- 
 liberate rejection of information is explained by the state- 
 ment that the industries enumerated by their concentrated 
 character, "afforded the possibility of obtaining returns 
 sufficiently complete and accurate to be of value." ^^^ 
 
 The acts of 1897 and 1900 applied only to railways, 
 factories, mines, quarries, engineering work, building 
 and agriculture. A comparison of the industries included 
 in the order of the Secretary of State with those to which 
 the former legislation applied, makes it apparent that in 
 five groups of employment an attempt is being made to 
 gather information equally obtainable, and if anything 
 more valuable than during the ten years which had passed. 
 The returns required do not cover all the industries af- 
 fected by the old legislation much less the new. Nothing 
 is asked from the building industries, or agriculture, in- 
 land transportation, including street railways, omnibus, 
 cab or motor service, all forms of domestic and clerical 
 service, and a variety of smaller employments to which 
 the law was extended. 
 
 Insurance companies estimate from the British census 
 of 1901 and later calculations, that not less than 13,000,- 
 000 persons are included within the provisions of the 
 
 (a) Statistics of Compensation during 1008. Introduction p. 3. 
 
BRITISH COMPENSATION STATISTICS 215 
 
 Act of 1906. The Departmental Committee, in the course Estimate of 
 of its report, estimated the number of persons within the p^rTons ° 
 terms of the Acts of 1897 and 1900 at 7,250,000. It is UTTJoq 
 therefore obvious that if complete returns were received 
 from the industries selected, but little more than 60 per 
 cent of the operation of the Act is presented. 
 
 Let us now examine the nature and extent of the in- 
 formation received by the British Home Office and issued 
 for the years 1908 and 1909 as "Statistics of Compensa- 
 tion and Proceedings under the Workman's Compensation 
 Act of 1906.'' (a) 
 
 The Compensation Act of 1906 did not become effective 
 until July 1907. We are therefore to receive the dis- 
 closures of the first two years of its operation. The report 
 of the second year is expected to cover deficiencies and 
 difficulties officially recognized to attach to the returns 
 of the first year. It may therefore be assumed to represent 
 the most complete information we can expect. 
 
 Table 1 summarizes the comparative statistics of summary of 
 compensation supplied by the Home Office for the years Acrof"i906^ 
 1908 and 1909. We must form some estimate as to their ?„Y^^^7t«r 
 
 1908 and 1909 
 
 character and completeness before we proceed to lise their 
 contents as the basis of subsequent conclusions. 
 
 The report informs us that the Secretary of State, 
 under the powers conferred upon him by the Act of 1906, 
 has required limited statistics of compensation from the 
 seven groups of industries heretofore enumerated, to- 
 gether with general statistics, "similar to those given in 
 previous years in regard to the administration (b) of the 
 Act. The statistics of administration are therefore con- 
 fined to the number and character of litigated cases 
 
 (a) Cd. 4894. Cd. 538G. ' 
 
 (b) Statistics Compensation during 1908. Introduction p. 3. 
 
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BRITISH COMPENSATION STATISTICS 217 
 
 under the Act, the coiiinion law and the employers' liability 
 statutes. 
 
 The particulars required from the seven groups of in- information 
 dustries are : Required 
 
 from 
 
 A. The number of fatal accidents in which compensa- u^er°Ac7i90G 
 tion was paid during the year, and the amount, distin- 
 guishing cases where persons wholly dependent, cases 
 
 where persons partly dependent and cases where no de 
 pendents were left. 
 
 B. Tlie number of disablement cases in which compen- 
 sation was paid, distinguishing cases continued from pre- 
 vious years and cases in Avhich the payment was made 
 during the year. 
 
 C. The duration of the compensation in disablement 
 cases. 
 
 D. The settlements of disablement cases by lump sum 
 payments. (^^ 
 
 Separate information was also asked concerning the 
 number and nature of cases of industrial disease, and the 
 amount of compensation paid therein. 
 
 The nature of these interrogatories precludes data information 
 respecting the comparative quantity, character and cost 
 of insurance carried, the medical and legal expense con- 
 nected with the adjustment of claims, the causes of acci- 
 dent and its comparative distribution, or other facts enab- 
 ling a substantial calculation of the pecuniary burden of 
 the Act to be made. 
 
 Unsatisfactory as is the nature of the information 
 elicited, it is, by the intrinsic evidence of the report itself, 
 incomplete within its own limitations. The report for 
 1908, alluding to the collective returns of compensation 
 
 (n) Statistics Compensation during 1908, p. 4. 
 
218 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Evident 
 Incompleteness 
 of British 
 Statistics of 
 Compensation 
 
 declares: "Of the whole of the industries covered by the 
 order, they account for 69 per cent of the fatal cases, and 
 71.10 per cent of the compensation; 73 per cent of the 
 disablement cases and 74.10 per cent of the compensa- 
 tion." (a) 
 
 Respecting the same condition the repori for 1909 does 
 not show a marked improvement. It accounts, within 
 the same groups of employments, for : "73 per cent of the 
 fatal cases and 73.5 per cent of the compensation; 73.7 
 per cent of the disablement cases and 75.8 per cent of the 
 compensation." (b) 
 
 Having deliberately narrowed their investigation to 
 60 per cent of the employments affected by the Act, the 
 returns of the Home Office are, within this circumscribed 
 field, from 25.90 per cent to 31 per cent incomplete for 
 the year 1908 and from 24.02 per cent to 27 per cent 
 incomplete for the year 1909. It is not, therefore, un- 
 fair to say that the statistics of the British Home Of- 
 fice account for less than 50 per cent of the complete 
 operation of the Act. It is undoubtedly true that within 
 one or more of the seven general groups of industries 
 covered, the returns in single sub-divisions are probably 
 90 per cent complete, but the substantial completeness 
 of the information respecting a fractional division of a 
 single industry does not, and cannot cure inadequate 
 general statements, and, in many cases, the complete 
 absence of information respecting a whole employment. 
 
 Upon these insufficient returns the cost of compensa- 
 tion to the seven groups of industries, individually and 
 collectively, is calculated and asserted upon a principle 
 of estimate as erroneous as its basic data are incomplete. 
 
 (a) Statistics Compensation during 1008, p. 4. 
 
 (b) Statistics Compensation during 1909, p. 4. 
 
BRITISH COMPENSATION STATISTICS 219 
 
 The statistician of the Home Office divides the total amount Erroneous 
 
 Computation 
 
 of compensation reported to have been paid in an}- single of cost of 
 
 . Compensation 
 
 mdustiy, or in all, by the total number of persons re- 
 ported to have been employed therein, and concludes that 
 he has arrived at the cost of the legislation for each per- 
 son employed under it.(^) There is indication, however, 
 that in some instances the number of persons employed 
 is figured from sources other than the returns, which 
 would add further errors of fact to those of process. But 
 quite apart from such irregularities it must be evident 
 that the pecuniary burden of the law to any particular 
 industry, or to all employments, is to be estimated not 
 by the total sum paid in compensation claims, nor by 
 the amount which that represents for each individual 
 employed, but by the total amount of premiums paid for 
 the insurance of all Avorkmen in a given service, or the 
 risk carried hj the individual who does not insure his 
 liability expressed in the insurance term for that risk. 
 
 The truth of this becomes clearer if we recall that it is Fallacy 
 
 of Method 
 
 a frequent complaint against our own system, that under illustrated 
 it only 40 per cent or 50 per cent of the premiums paid Experience 
 by the employer to insure his liability reaches the injured 
 Avorkman. It must therefore be obvious that any calculation 
 of the cost of employers' liability insurance in the United 
 States, based upon the amounts paid to the injured per- 
 son, would fall short of the fact by the difference be- 
 tween the premiums paid to the underwriter and the 
 amount which he expended in the settlement of claims. 
 It would be equally fallacious to figure the cost of insur- 
 ance per employe by dividing the amount paid in claims 
 by the number of persons employed in the industry in 
 
 (a) Statistics Compensation during 1000, p. 4. 
 
220 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Burden of 
 the Act 
 Displayed 
 in British 
 Statistics 
 
 Discrepancies 
 in Factory 
 Accidents 
 
 which the claim Avas paid. It must be therefore evident 
 that the conclusions reached in the British reports, re- 
 specting the pecuniary burden of the Act, are based upon 
 an utterly erroneous principle of calculation. 
 
 Taken upon their face value, the returns compiled in 
 Table 1 suggest somewhat startling conclusions as to 
 the probable extent and nature of the real pecuniary 
 burden created by the Act. The figures for 1908 are 
 based upon returns covering 7,500,000 emplo^^es, showing 
 compensation to have been paid in a total of 328,957 
 cases, or, on the face of the returns, one case of compen- 
 sation for substantially every twenty-two employes. For 
 1909 the same groups of industries shoAv compensation 
 to have been paid in 335,953 instances with hut 6/)O0fi0O 
 employes, or one payment for every 19 employes 
 reported. With 1,000,000 less employes, tlie second year 
 of the operation of the Act shows 6,996 additional cases 
 of compensation. 
 
 We are further informed that in the factory indus- 
 tries in 1909 there were 744 instances in which compen- 
 sation was paid in fatal cases and 123,134 disablement 
 cases. For the same year but 700 fatal cases were re- 
 ported under the Factory Act. In the Compensation 
 Report itself it declared, with respect to the factories: 
 "On a rough estimate the number of reported accidents 
 which disabled for more than seven days would seem not 
 to have exceeded 100,000.^^ (a) 
 
 Yet compensation was paid in 23,134 instances in 
 excess of the estimate ! These discrepancies are explained 
 in the report by the statement that the compensation 
 returns covered a "somewhat wider field than the returns 
 
 (a) Statistics Compensation durini? 1909, p. 7. 
 
BRITISH COMPENSATION STATISTICS 221 
 
 under the Factory Act, the latter relating only to em- 
 ployment in the factory, while for the purpose of com- 
 pensation returns all persons engaged hy the employer 
 in connection with the industry carried on in the factory, 
 ^outside' as well as inside hands would be included." ^^^ 
 
 This plausible explanation must face its own figures 
 respecting "outside employes," who are enumerated at 
 283,638/^) Therefore, to accept the explantion offered for 
 the discrepancy between the excess of compensation 
 awarded over accidents reported or estimated, we must 
 assume at least one in eleven of the "outside" employes 
 not only to have been injured, but disabled for at least 
 seven days! While of no great importance in itself, the 
 incident illustrates the dissatisfaction attendant upon a 
 perusal of the report. 
 
 Not only with respect to accidents, but also to Indus- Marked 
 trial disease there exists the same evidence of an increas- Q^'^/J^'^auonai 
 ing number of compensation cases accompanying a de- Disease 
 creasing number of emplo^-es. The report for 1908 gives 
 2,286 cases of occupational disease for which compensa- 
 tion was paid;(c) 1999 giiows 3,316 cases, an increase of 
 1,060 cases in which compensation was paid.(^) 
 
 Accepted upon their face value, the returns would 
 indicate that injury and compensation were practically 
 equivalent terms. If compensation payments thus in- 
 crease as employment decreases one must become lost in 
 a maze of speculation as to the proportion which will be 
 shown with increasing employment. 
 
 The record of judicial arbitration under the Act, 
 Table 2, presents most interesting features. Of 328,957 
 cases in which compensation w^as paid in 1908, but 5,358 
 
 (a) Statistics Compensation during 1909, p. 7. 
 
 (b) Statistics Compensation during 1909, p. S. 
 
 (c) Statistics Compensation during 1908, p. 12. 
 
 (d) Statistics Compensation during 1909, p. 1. 
 
222 ACCIDENT PREVENTION AND RELIEF 
 
 TABLE 2 
 OPERATION OF THE ACT OF 1906. 
 
 STATISTICS OF COMPENSATION BRITISH HOME OFFICE 
 
 REPORTS. • 
 
 COMPENSATION CASES ARBITRATED IN COUNTY COURTS, 
 
 1908.-9. 
 
 Employments 1909 1908 
 
 Professional Employments 29 19 
 
 Commercial Occupations 12 19 
 
 Shop Assistants 118 121 
 
 Domestic Servants 432 368 
 
 Seamen 359 326 
 
 Fishermen 19 17 
 
 Agriculture 265 284 
 
 Building 637 543 
 
 Factories and Workshops 1,820 1,440 
 
 Docks, Wharves and Quays 315 275 
 
 Mines 1,255 1,057 
 
 Quarries 87 66 
 
 Constructional Work (excluding Building) 177 129 
 
 Railways 176 250 
 
 Inland Transport ty Road 379 362 
 
 Inland Transport by Water 48 29 
 
 Miscellaneous 60 53 
 
 Total = 6,188 5.358 
 
BRITISH COMPENSATION STATISTICS 223 
 
 v\'ere taken into court, and of these 1,563 were withdrawn Litigation 
 
 under Act of 
 
 or settled. Of 335,953 cases in which compensation was i906 
 paid in 1909, but 6,188 were taken into court, and of these 
 1,789 were withdrawn or settled out of court. For 1909 
 ^^it appears that the number of claims to compensation 
 which have been settled judicially is less than one to five 
 in fatal cases, and less than one to two hundred in cases 
 of disablement.'' (^) 
 
 It is apparent that during both 1908 and 1909 more 
 than one-third of all the cases taken into court came from 
 employments which are not covered by the returns of the 
 Home Office, a circumstance affording further evidence 
 of the great number of cases and circumstances of com- 
 pensation which are officially overlooked. 
 
 It is very interesting to observe that the proportion Proportion of 
 of cases in which the applicant for compensation was compensation 
 successful in proceedings in court was 79 per cent in 1909, ^^^^^^^~ i^ 
 82 per cent in 1908 and 81 per cent in 1907. From Legal Actions 
 various other features of the Act which we have hereto- 
 fore considerd, it becomes impossible to conclude whether 
 the tremendous percentage of compensation claims ad- 
 justed out of court are due in any great measure to its 
 essential equity, or to the prudence of the employer who 
 refuses, by contest, to add the further costs of a hopeless 
 defense to the substantial certainty of an award. That 
 workmen are content to accept the certainties of the Com- 
 pensation Act as against the speculative possibilities of 
 recovery under the Employers' Liability Act, seems evi- 
 dent from the fact that in 1909 there were but 204 actions 
 brought under that statute as against 260 for 1908, 343 
 for 1907, and 470 for 1906. (b) 
 
 (a) Statistics Compensation during IDOO, p, .3. 
 
 (b) Statistics Compensation during 1909, p. 16. 
 
224 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Conclusions 
 
 Respecting 
 
 British 
 
 Compensation 
 
 Statistics 
 
 The continuous neglect, almost refusal, to collect 
 accessible and essential information respecting the Com- 
 pensation Acts is an English political conundrum. Even 
 the smaller Continental States studied their limited ap- 
 plication of these principles with painstaking earnestness 
 and care. But here is the puzzling spectocle of a nation 
 in the "foremost files of time," proverbially suspicious of 
 legal innovation, introducing into her ancient system 
 principles alien to her traditions and professedly^ giving 
 them trial, yet making no serious provision to observe 
 the result of her bold experiment. Under these circum- 
 stances the continued practice of these ideas during a 
 long period of years is surprising, but their extension 
 practically to the limits of Parliamentary power with no 
 scientific knowledge upon which to base the legislative 
 action is amazing. Accurate knowledge is the basis of 
 all rational action. To act without it is to grope in the 
 dark. These defects of method are widely recognized in 
 England, but, strange to say, they continue, as Ave have 
 observed, inadequately remedied. The nature and ex- 
 tent of the latest official inquiry into the operation of the 
 Act of 1906, is, we have seen, incomplete and inconclu- 
 sive and can supply merely that half knowledge which is 
 neither satisfactorv nor scientific. 
 
CHAPTER TWELVE 
 
 Insurance Under tke Compensation Act 
 
CHAPTER XII 
 Insurance Under the Compensation Act 
 The natural result of compensation legislation was a increased 
 
 Demand for 
 
 very greatly increased demand for liability insurance. Liability 
 
 Insurance 
 
 The law did not require it, but the promptings of self- ^^'Jf^^^'^j^^®"^" 
 interest, especially in view of the many alarming opinions legislation 
 which were entertained as to the nature and extent of the 
 new liability, led the employer to seek its protection. 
 The complete absence of statistical data prevents us from 
 ascertaining either the amount of compensation paid or 
 the proportion of insurance carried thereto during any 
 or all of the years since 1897. The returns required by 
 the Board of Trade during the past two years inform 
 us as to the amount of employers' liability insurance 
 business which is being done by English companies, but 
 it does not enlighten us as to the amount of compensation 
 paid. The Home Office reports, to which we have re- 
 ferred at length in a preceding chapter, estimated that at 
 least £3,000,000 (|15,000,000) was paid in compensation 
 during the year 1909. ^^^ Many insurance officials insist 
 that the true amount is from one-third to one-half greater 
 than this. 
 
 (a) Statistics Compensation during 1909, p. 3. 
 
 227 
 
228 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Incompleteness 
 of Official 
 Records 
 Compels Resort 
 to Insurance 
 Companies 
 
 But even if the amount paid for new or continuing 
 claims had been ascertained they would not suffice to 
 show the pecuniary burden of the Act. They would 
 cover the claims paid, but would leave us still ignorant 
 of the cost incident to their payment. A variety of 
 charges attach to the adjustment of claims by the indi- 
 vidual employer who carries his own risk, and if he in- 
 sures it the cost of compensation legislation to him is 
 expressed by his premium rate and not by the lesser or 
 greater sums which his underwriter may pay in settle- 
 ment of claims against him. 
 
 The incompleteness of official data forces us back 
 upon the insurance companies if we are to form any 
 satisfactory estimate of the pecuniary burden of the 
 British legislation. If public records will not tell us its 
 cost to the British employer, the insurance companies 
 will at least inform us what it will charge to assume the 
 liability of the employer. We thus obtain a knowledge 
 of rates, if not of cost, and the expression of an expert 
 judgment as to the character and extent of the employers' 
 legal risk. 
 
 The experience of those who undertake, as a part of 
 their business, to underwrite the legal burden of the Brit- 
 ish employer, is perhaps the most conclusive evidence of 
 the high and uncertain liabilities which Parliament has 
 created. Facing the task of estimating the pecuniary 
 obligations created by the Act of 1897, the English acci- 
 dent companies undertook to formulate rates upon their 
 personal experience with the common laAV and the Em- 
 ployers' Liability Act of 1880, modified by a study of 
 German and Austrian statistics and the information sup- 
 
INSURANCE UNDER COMPENSATION ACTS 229 
 
 plied by the relief associations of the great Friendly 
 Societies. A tariff was accordingly drawn and agreed 
 upon by a large number of insurance organizations, but 
 within a year many of the important parties to the agree- 
 ment withdrew, in the face of the exceedingly sharp com- 
 petition which broke out as many new companies entered 
 the field attracted by the apparently vast opportunity for 
 business. 
 
 Prior to 1909 insurance companies were not required First stages 
 
 -of Liability 
 
 to make any pecuniary guarantee of solvency. Under insurance 
 
 under 
 
 the statute passed in that year each company was re- compensation 
 
 Act 
 
 quired to deposit £20,000 (|100,000) with the Pay- 
 master-General as a condition of engaging in busi- 
 ness, (a) Cash assets were not a prerequisite in 1897 and 
 a variety of new companies came into being eager to ac- 
 cept liabilities under the Compensation Act, many pos- 
 sessing insufficient experience. The result was a condi- 
 tion of bitter competition. Kates were slashed during 
 the first year and subject to individual variations in 
 accordance with the speculative boldness of particular 
 companies. Within a year rates rapidly advanced, but 
 the sharp conflict resulted in a number of business fatal- 
 ities. The larger companies, however, appeared to have 
 acted throughout this period with general conservatism 
 and a great number soon reached an understanding on 
 rates, many of the larger organizations being represented 
 in a standing Rate Committee. Indeed, English insur- 
 ance companies are popularly known as either tariff or 
 non-tariff companies, the former including most of the 
 
 (a) 9 Edw. 7 chap. 49 Sec. 2. 
 
230 ACCIDENT PREVENTION AND RELIEF 
 
 greater organizations conforming to a minimum tariff 
 which can be lowered in individual instances only with 
 the approval of a standing representative Rate Com- 
 mittee. The non-tariff companies include all those organ- 
 izations bound by no restrictions in the making of rates, 
 but generally accepting as a guiding standard the tables 
 of the tariff companies. It is frequently stated in 
 England by the representatives of the smaller non-tariff 
 organizations that the large companies, with their 
 greater capital and experience, have enjoyed the advan- 
 tage of the more select risks and act with much caution 
 in accepting dubious ones, while the smaller and newer 
 companies are compelled by business considerations to 
 take the less desirable risks, ofttimes with serious con- 
 sequences to themselves. This condition, it is said, will 
 ultimate in the retirement of many of the smaller compan- 
 ies, leaving the field largely to their stronger rivals, who 
 will either reject a great number of risks now being under- 
 written at speculative rates, or greatly advance the 
 charges. 
 Effect of As the legislation of 1897 was subject to judicial in- 
 
 DecSons terprctatiou, the decisions of the Court of Appeals and 
 
 on Rates ^j^^ House of Lords brought home a very keen realiza- 
 
 tion of the responsibilities created by the Act, and rates 
 have been continually advanced in accordance with the 
 increase of actual and potential liabilities. The Act of 
 1906 vastly widened the area for insurance activity. A 
 variety of new employments were brought within its 
 terms. The waiting period, during which no compensa- 
 tion was paid, was reduced from two weeks to one, and 
 this, alone, wa« estimated to increase the cost of insur- 
 
INSURANCE UNDER COMPENSATION ACTS 231 
 
 ance from 30 to 50 per cent, whilst a broad margin was 
 required in new rates to cover the variety of contingent 
 liabilities over and above all the increased obligations 
 evident upon the face of the measure. Table 3 (page 232) . 
 
 A careful examination of the rate books of the tariff insurance 
 
 Rates under 
 
 companies show their premium charge under the Compen- compensation 
 
 Act 
 
 sation Act to run from two-tentjis of one per cent to 10 
 per cent of the wage roll. There are also a number of 
 employments specified as "reserve risks/' and either taken 
 at special rates in accordance with the individual cir- 
 cumstances of the employment, or for which insurance 
 is refused. 
 
 These contracts of insurance sometimes exclude classes Municipal 
 
 Insurance 
 
 of employes and sometimes individual workmen. Strong Against 
 
 /. , . . , , « -r^ Liability 
 
 evidence of this practice was presented before the Depart- to Public 
 mental Committee in 1904.(3^) The practice was then ex- 
 plained by the greater risk of injury to which elderly or 
 defective men are subject, which rapidly increases with 
 age. This condition has been aggravated by the increased 
 liabilities of the Act of 1906. Under decision of the 
 House of Lords the employer has been held, in recent 
 years, to be liable for injuries which are the natural 
 consequences of disease rather than accident. Evidence 
 accumulates constantly and everywhere that this has 
 brought about the enforcement of stringent regulations 
 in many industries respecting the employment of the old 
 and maimed. Some large employers are requiring physi- 
 cal examinations of applicants for employment. Nor is 
 this confined to private service. It is remarkable, but 
 true, that large public bodies, such as the London County 
 Council and tlie Metropolitan Water Board, who insure 
 
 (a) Report Departmental Committee (1904), Vol. I, pp. 39-40. 
 
 Servants 
 
232 ACCIDENT PREVENTION AND RELIEF 
 
 TABLE 3 
 
 INSURANCE RATES UNDER WORKMEN'S COMPENSATION ACT 
 
 1897 AND 1906 
 The amounts expressed in shillings are the rat^ per £100. 
 
 1897 1906 
 
 Aerated Water Manufacturers 7/6 20/- 
 
 Bakers 5/- 4/- to 20/- 
 
 Blacksmiths 7/6 30/- 
 
 Boat Builders 12/6 15/- to 40/- 
 
 Boot and Shoe Manufacturers 4/- 4/- 
 
 Bookbinders 4/- 6/6 
 
 Brickmakers 7/6 10/- to 40/- 
 
 Bottlers 7/6 10/- to 20/- 
 
 Brewers 7/6 20/- to 25/- 
 
 r 5/- 
 
 Builders <^ 7/6 15/- to 40/- 
 
 ( 10/- to 20/- 
 
 Chemical Workers 10/- 25/- 
 
 Cloth Mills 4/6 5/- 
 
 Confectioners 5/- 4/- to 20/- 
 
 Coal Merchants 5/- to 15/- 20/- to 30/- 
 
 Coopers 12/6 10/- to 40/- 
 
 Engineers 10/- to 30/- 10/- to 20/- 
 
 Farmers 6/- 8/- to 20/- 
 
 Glass and Bottle Manufacturers 5/- 10/- to 15/- 
 
 Iron Founders 5/- to 10/- 12/- to 50/- 
 
 Joiners 5/- to 10/- 15/- 
 
 Laundries 10/- 6/- to 12/6 
 
INSURANCE UNDER COMPENSATION ACTS 233 
 
 TABLE 3 (Continued) 
 
 1897 1906 
 
 Machinists 7/6 12/- to 40/- 
 
 Metal Goods Manufacturers (light) 5/- 6/- to 7/6 
 
 Paint Manufacturers 7/6 15/- 
 
 Paper Mills 12/- 15/- 
 
 Plasterers 7/- 10/- to 20/- 
 
 Plumbers 5/- 12/6 to 50/- 
 
 Potteries 5/- -5/6 to 50/- 
 
 Printers 4/- 6/6 
 
 Quarries 201/- 25/- to 60/- 
 
 Saw Mills 20/- 25/- to 40/- 
 
 Shipbuilders 25/- 25/- to 80/- 
 
 Ship Repairers 30/- to 80/- 
 
 Soap Manufacturers 4/- 15/- 
 
 Stevedores Special 80/- to 120/ 
 
 Stone Masons 7/6 15/- 
 
 Tanners 4/- 10/- 
 
 Tile Makers 7/6 12/6 
 
 Tin Plate Works 7/6 15/- to 20/- 
 
 Tobacco Manufacturers 4/- 7/6 
 
 Weavers 3/- 5/- to 7/6 
 
 Wire Drawers 7/6 25/- 
 
 Warehousemen 2/- 6/- to 20/- 
 
 Window Cleaners 3/6 60/- 
 
 These rates are necessarily approximate; while obtained from the 
 most reliable sources and in the majority of cases are minimum rates, 
 they are subject to change. 
 
Instability 
 of Rates 
 
 234 ACCIDENT PREVENTION AND RELIEF 
 
 themselves against their risk under the Compensation 
 Act, present the somewhat surprising spectacle of a 
 municipality taking the utmost precaution to protect it- 
 self against an extreme liability imposed by the state. 
 Continuing ^^' Collic, the Houic Officc medical referee, generally 
 
 recognized as a high authority on medico-legal aspects of 
 the Compensation Act, stated in his address before the 
 International Conference on Social Insurance, at The 
 Hague, in September, 1910, (a) that he had examined, 
 on behalf of London public bodies, 7,000 candidates for 
 employment in the public service of which he had re- 
 jected over 700, or 10 per cent. He urged, from this 
 experience of the largest municipality in the world, 
 that "it would appear that from the employer's point of 
 view, a preliminary examination of employes is a good 
 commercial investment.'' This is not a pleasant sugges- 
 tion, but if city governments establish the practice of re- 
 quiring physical examination of applicants for the public 
 service as a means of protecting the municipality against 
 legal liability, private employers and insurance companies 
 are likely to be greatly influenced by the public example. 
 But to return from conditions affecting rates to the 
 rates themselves. It is desirable to ascertain whether or 
 not the rates, however high they may seem, have reached 
 the stationary point expressing a permanent, fixed charge. 
 To this there can be but one answer. Rates must con- 
 tinue to advance, not only in accordance with the ever- 
 increasing number of permanent disabilities, but to 
 cover the contingent liabilities that are generally admit- 
 
 (a) Bulletin des Assurances Sociales Rapports Preliminaires, p. 153. 
 
INSURANCE UNDER COMPENSATION ACTS 235 
 
 ted to remain in no inconsiderable numbers in the terms 
 of tlie Act, and which in the course of its interpretation 
 must from time to time extend its legal obligations. But 
 even if the divers liabilities and dormant burdens of the 
 legislation had been capable of definite calculation and 
 included in the present rates, they must still advance, for 
 the public returns of the insurance companies, the 
 opinions of their officers and the experience of the past 
 few years demonstrate that the rates now in force do not 
 express the pecuniary liabilities of the Act in terms of 
 insurance profit. The greater part of the risks taken un- 
 der the Compensation Act are being underwritten at a 
 loss. Insurance companies are business enterprises, not 
 philanthropic institutions, and rates will undoubtedly ad- 
 vance to a point where they become profitable to private 
 enterprises, unless the state, in the meantime, should 
 substitute public insurance. 
 
 Mr. Stanley Brown, manager of the Employers' Lia- ^^^^mT °^ 
 bility Insurance Company, and Chairman of the Accident ^^* °^ \^^^ 
 Officers' Association, states that in his opinion and the ^^^^ ^""^ ^^^^ 
 general opinion of the Association, the Act of 1906 ^^goes 
 beyond the price of our former Compensation Act in a 
 proportion from 150 per cent to 200 per cent."^^) Table 4 
 ( page 236 ) shows 14 changes of minimum rates in as many 
 employments between March and October of 1910, carrying 
 increases of from 25 per cent to 150 per cent over the 
 previous charge, and still the managers of many of the 
 great insurance corporations express the opinion that 
 rates are, generally speaking, from 50 per cent to 75 
 per cent below the amount which, in the present state 
 of the law, expresses its risk. 
 
 (a) Evidence Stanley Brown, Quebec Accidents Commission, p. 8. 
 
236 ACCIDENT PREVENTION AND RELIEF 
 
 TABLE 4 
 
 t 
 
 INCREASES IN WORKMEN'S COMPENSATION TARIFF RATES 
 FROM MARCH TO OCTOBER, 1910. 
 
 Trade Old Rate New Rate 
 
 Carriers 20/- 32/6 
 
 Furniture Dealers (delivery) 20/- 32/6 
 
 Furniture Depository 20/- 32/6 
 
 Bacon Curers (Slaughter houses) 20/- 50/- 
 
 Builders Class A 15/- 20/- 
 
 Builders Class B 20/- 30/- 
 
 Builders Class C 30/- 50/- 
 
 Woodworking Machinists 40/- 90/- 
 
 Joiners (non-woodworking ma- 
 chinists) 15/- 30/- 
 
 Ironmongers (Mechanics) 15/- 20/- 
 
 Plumbers (Mechanics) 15/- 20/- 
 
 Painters and Decorators (excluding 
 
 roofs over 30 ft. high) 30/- 40/- 
 
 Painters and Decorators (excluding all 
 
 roofs) 20/- 30/- 
 
 Plasterers 15/- 20/- 
 
 Slaters 35/- 50/- 
 
 Tin Plate Workers 15/- 25/- 
 
INSURANCE UNDER COMPENSATION ACTS 237 
 
 But it may be said this demonstrates the instability Bulk of British 
 
 Compensation 
 
 of existing rates, not the fact that they are carried at a loss insurance 
 
 Carried at 
 
 and must be advanced for that reason. Table 5 (page 238) loss 
 displays the total employers' liability business done in 
 Great Britain in the year 1908 by 34 tarifP and 21 
 non-tariff companies, carrying the bulk of the nation's 
 risks. It discloses that the largest companies, individ- 
 ually, are operating at a loss, or produce an exceedingly 
 narrow margin of profit. The total revenue of the tariff 
 companies shows a net profit of but 2 per cent, that of 
 the non-tariff companies a net loss of 9.73 per cent. The 
 total operations of the 55 companies included in the re- 
 turns manifest a loss of .41 per cent. 
 
 This evidence of the insurance situation in 1908 is 
 confirmed and made much clearer by the returns for 
 1909. The matter is simplified by taking the statements 
 of the four largest and most widely known of all British 
 companies, organizations which also do business in the 
 United States. Table 6 (page 240) shows: 
 
 1. The total business of these companies in the year 
 1909. 
 
 2. Their American business during that year. 
 
 3. Their British business exclusively. 
 
 By accepting five dollars to the pound, we sub- 
 stantially translate the English money into American 
 dollars and discover a total profit for the four companies 
 for 1909 for all employers' liability business to be |1,049,- 
 890. The American business netted a total of |1,860,465, 
 whilst the British business, represented almost entirely 
 by risks under the Compensation Act, displayed a net 
 loss of 1807,575. Each company was conducted with 
 
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240 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 TABLE 6 
 
 TOTAL BUSINESS AND RESULTS, FOUR LARGEST BRITISH 
 
 EMPLOYERS' LIABILITY COMPANIES, 1909. 
 
 Company 
 
 Premiums 
 
 Losses 
 Incurred 
 
 Expenses 
 
 Surplus 
 
 Employers' Liability ... 
 
 General Accident 
 
 London Guarantee and 
 Accident 
 
 £ 
 1,046,151 
 1,168,303 
 
 558,343 
 1,477,805 
 
 £ 
 587,073 
 621,282 
 
 278,230 
 792,871 
 
 £ 
 388,500 
 519,148 
 
 247,966 
 605,554 
 
 £ 
 70,578 
 27,873 
 
 32,147 
 79,380 
 
 $352,890 
 139,365 
 
 160,735 
 396,900 
 
 Ocean 
 
 
 
 4,250,602 
 *$21,253,010 
 
 2,279,456 
 $11,397,280 
 
 1,761,168 
 $8,805,840 
 
 209,978 
 
 $1,049,890 
 
 UNITED STATES BUSINESS, 1909. 
 
 Company 
 
 Premiums 
 
 Losses 
 Incurred 
 
 Expenses 
 
 Surplus 
 
 Employers' Liability 
 
 General Accident 
 
 London Guarantee and 
 
 Accident 
 
 Ocean 
 
 £ 
 697,906 
 615,172 
 
 438,190 
 595,612 
 
 £ 
 326,702 
 205,586 
 
 221,247 
 318,845 
 
 £ 
 252,986 
 266,289 
 
 173,147 
 210,585 
 
 £ 
 118,218 
 143,297 
 
 43,796 
 66,182 
 
 371,493 
 
 $591,090 
 716,485 
 
 218,980 
 330,910 
 
 
 2,346,880 
 $11,734,400 
 
 1,072,380 
 $5,361,900 
 
 903,007 
 $4,515,035 
 
 $1,857,465 
 
 BRITISH AND OTHER SECTIONS. 1909. 
 
 Company 
 
 Premiums 
 
 Losses 
 
 Expenses 
 
 Surplus or Deficiency 
 
 Employers' Liability... 
 
 General Accident 
 
 London Guarantee and 
 Accident 
 
 £ 
 348,245 
 553,131 
 
 120,153 
 882,193 
 
 £ 
 260,371 
 415,696 
 
 56,983 
 474,026 
 
 £ 
 135,514 
 252,859 
 
 74,819 
 394,969 
 
 £ 
 
 -47,640 
 
 -115,424 
 
 -11,649 
 + 13,198 
 
 -$238,200 
 -577,120 
 
 —58,245 
 
 Ocean 
 
 +65,990 
 
 
 1,903,722 
 $9,518,610 
 
 1,207,076 
 $6,035,380 
 
 858,161 
 $4,290,805 
 
 -161,515 
 
 —$807,575 
 
 * Calculated basis $5.00 to £1 (1 pound) 
 
INSURANCE UNDER COMPENSATION ACTS 241 
 
 profit in the United States and each company operated 
 at a significant loss in Great Britain. 
 
 These conclusions are only strengthened by a detailed Explanations 
 examination of the reports of 77 companies engaged in for insurance 
 
 Losses 
 
 the employers' liability business, and made to the Board 
 of Trade of England for the year 1909. (a) But it may be 
 asked, Why should business be undertaken at a loss? Why 
 are not rates immediately raised if loss is being steadily 
 sustained? We have seen that rates are being advanced 
 and in view of the condition which evidence discloses it 
 must be assumed that they are moving upwards as rapidly 
 as circumstances permit. A fact and its explanation are, 
 however, quite different things. The British insurance 
 situation presents an interplay of many forces. One can 
 quite readily see the plain outlines of the condition without 
 perceiving all the factors which contribute to its main- 
 tenance. 
 
 It is frankly stated in insurance circles that there is 
 not sufficient data available nor has sufficient time 
 elapsed to permit the formation of an accurate actuarial 
 judgment of the liabilities created by the Act of 1906. 
 This primary difficulty is augmented by the complexity 
 of the measure and the variety of contingent liabilities 
 surrounding its future. It is further said that many fire 
 insurance companies have gone into the liability field to 
 protect household insurance, the peaceful possession of 
 which is threatened by the entree to the householder 
 which new liability companies likewise taking fire risks 
 have secured since the inclusion of domestic service in 
 
 (a) Statements Employers* Liability Insurance Co., year ending 
 Dec. 31, 1909. 
 
242 ACCIDENT PREVENTION AND RELIEF 
 
 the Act. It is further explained that fire underwriters are 
 willing, although undoubtedly not anxious, to incur loss, 
 while the taking of a limited amount of losing employers' 
 liability insurance is to be regarded as an incident in 
 the protection of their standard business. But, however 
 dissatisfied we may be with any or all of tiie explanations 
 offered for the present English insurance situation, the 
 fact which cannot be gainsaid is that the pecuniary 
 burden of the Act neither has been ascertained nor is yet 
 capable of ascertainment. If the pecuniary cost of this 
 legislation defies the experience and judgment of those 
 whose business success depends upon the successful cal- 
 culation of risk, who shall endeavor to express its terms? 
 Cost cf A fixed element in the cost of all private insurance is 
 
 Insurance 
 
 Administration the cxpcuse of administration. Statistics in England, 
 like our own, indicate that for every |1,000 paid by an 
 employer, some |400 is lost on its way to the injured 
 man. We might assume from these circumstances and 
 the natural temptation to lessen the charges for adequate 
 protection, that mutual insurance would find a large 
 field of service in England. But in spite of the opinion 
 expressed by the Departmental Committee in 1904 as to 
 the important and essential function which mutual in- 
 surance could perform in the administration of the Com- 
 pensation Act, Parliament has not seen fit to encourage 
 any form of it under the Act which employer and em- 
 ploye would support by joint action. 
 
 There seems to be a general impression that the Act 
 somehow aids the British employer to enter into some 
 mutual scheme which will bring himself and his work- 
 men together upon some equitable basis. The Act, how- 
 
INSURANCE UNDER COMPENSATION ACTS 243 
 
 ever, expressly discourages contracts outside of its terms 
 and permits them only under conditions that do not en- 
 courage the growth of substitutes. 
 
 Needless to say, no employer would undertake to main- contracting 
 
 Out Schemes 
 
 tain a plan of relief as well as meet the liabilities of 
 the Act. He can, however, provide a substitute for these 
 liabilities in only one way. He may present to the 
 Registrar of Friendly Societies a scheme conferring upon 
 his employes equal or greater benefits than the pro- 
 visions of the Act. In that event the Registrar must 
 certify, not only that this is the effect of the scheme, but 
 that a majority of the employes to whom the scheme is 
 applicable favor it, and their opinion is to be ascertained 
 by ballot. The plan must not require its acceptance as a 
 condition of employ ment, and the worker agreeing to it 
 must be permitted to withdraw at will. When all of 
 these conditions exist, the certificate of the Registrar 
 permits such a plan to remain in force for not more 
 than five years. If not fairly administered, the scheme 
 may be revoked at any time. A plan thus approved is a 
 permissible substitute for the benefits of the Act; it has 
 not, however, any binding force. Its acceptance is not 
 obligatory either upon the workmen who voted for it or 
 the minority who may have been opposed to it. The 
 approval of the Registrar does not in any way apply it 
 to the employment for which it is approved. It merely 
 permits the employer, after these various conditions have 
 been complied with, to contract with each workman indi- 
 vidually in accordance with these terms, and each indi- 
 vidual may accept it or reject it. The difficulties of organ- 
 izing systems of this character are indicated by the decreas- 
 
244 ACCIDENT PREVENTION AND BELIEF 
 
 ing number of workmen to whom they apply. The number 
 of workmen to whom the Act of 1897 applied was much 
 less than was covered by the Act of 1906, but in 1904 
 129,335 employes were covered by contracting out schemes ; 
 in 1909 there were but 66,952 in like condition. 
 The Great Prior to 1897 all the large English railroad systems 
 
 Eastern , . , it . . 
 
 Railroad Plan maintained mutual relief organizations some of which 
 possessed a high reputation for efficiency and were quite 
 satisfactory to their members, but since the passage of 
 the Compensation Acts, practically all have been aban- 
 doned except one in force on the Great Eastern Kailroad. 
 That company is now the largest employer, and indeed 
 the only very large employer contracting out of the Act. 
 Nearly 30,000 workmen are covered by its plan, the 
 particulars of which will be found in the Appendix, 
 page 353. 
 
 The Iron Trade Mutual iusurauce of employers engaged in the same 
 
 Employers' it i . t , . 
 
 Insurance or allied industrics, finds its best expression among 
 
 mine owners and in the unusually excellent organization 
 existing in the iron trades. The Iron Trades Employers' 
 Insurance Association, Ltd., is a mutual organization of 
 engineers and shipbuilders, who are members of the En- 
 gineering and Shipbuilding Employers' Federation. The 
 Association is not allowed to take as members any firm 
 . not a member of such Federation. A most interesting 
 ' memorandum describing the orgpnization and methods of 
 this Association is included in the Appendix on page 373, 
 and is presented through the courtesy of Mr. S. R. Glad- 
 well, secretary of the Association by whom it was espe- 
 cially prepared for publication. The Association insures 
 the liability risks of its members, who employ altogether 
 
INSURANCE UNDER COMPENSATION ACTS 245 
 
 upwards of 250,000 workmen. It is managed by a board 
 of directors composed of large employers of exceptional 
 ability and experience, and numbers on its staff super- 
 vising experts with exceptional insurance training. The 
 Association, by it nature, avoids elements of expense 
 essential to private insurance, having no commissions and 
 no dividends to pay, the services of its directors being 
 likewise without charge. Under these circumstances the 
 experience of the Association presents further striking 
 evidence of the native difficulties which underlie any 
 effort to successfully estimate the pecuniary liabilities of 
 the Compensation Act. 
 
 The operation of the Association from 1903 to 1909 is operation of 
 
 the Association 
 
 expressed in the following financial statement. During from 1903 
 
 to 1909 
 
 seven years of operation satisfactory to its members, it 
 has succeeded in underwriting their total liability with a 
 premium income of £866,680 (|4,333,400) at a total net 
 profit of one-tenth of one per cent. 
 
 Premiums Losses Expenses Percentage of 
 
 Received Profit or Loss 
 
 £ £ £ 
 
 1903 72,834 62,856 9,580 + 0.6 
 
 1904 77,382 73,183 9,955 — 7.3 
 
 1905 89,574 83,003 11,176 — 5.0 
 
 1906 116,376 121,422 11,079 —13.8 
 
 1907 121,544 111,607 11,576 — 1.3 
 
 1908 (18 mos.) 244,925 210,996 20,107 -f 5.6 
 
 1909 144,045 115,439 13,842 +10.1 
 
 Totals £866,680 £778,506 £87,315 + 0.1 
 
 Total losses and expenses . . £865,821 
 
246 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Summary 
 
 Respecting- 
 
 British 
 
 Compensation 
 
 Insurance 
 
 For 13 years the great insurance organizations of 
 Great Britain have wrestled with the actuarial prob- 
 lems within the Compensation Acts. Exceptional tech- 
 nical skill, experience and ability have directed their ef- 
 fort. Every business incentive has spurred them to the 
 conquest. But the remarkable success Vhich has at- 
 tached to every other department of the British under- 
 writer's vast activities is strangely absent from his 
 endeavor to gauge the employer's risks under these 
 measures. Kates rose and fell under the influence of the 
 sharp early competition. Their upward trend is now 
 long sustained. But 13 years has brought no stability. 
 The outlines of liability are still vague and indefinite. 
 The fault is not in the actuary, it is in the Act. He can- 
 not give shape to that which is formless and void and 
 state in fixed terms that which is by nature vague and 
 uncertain. 
 
CHAPTER THIRTEEN 
 
 Primal Defects of tke Britisk Legislation 
 
CHAPTER XIII 
 
 Primal Defects of the British Legislation 
 
 British compensation legislation sprang into being circumstances 
 at a time when the public attention was being: called to 5^"^®^ 
 
 ■^ ^ Compensation 
 
 the legal and economic hardships of the British workman. ^^^^^^^^^^^ 
 The rise of the Labor Party gave strength to a protest and 
 a demand, the one complaining of the legislation of the 
 past, the other proposing measures for the future. The 
 trade unions had fought their way through a variety of 
 legal disabilities not merely to toleration, but to excep- 
 tional legal privileges for their members. As the Labor 
 Party grew in power and Parliamentary representation it 
 became a considerable factor in British politics. Its in- 
 fluence was seen in the Act of 1897 and in the extension 
 of the terms of that measure to all forms of employment. 
 Many details of amendment express its reiterated de- 
 mands. Indeed, political pressure is historically a much 
 more reasonable explanation for many phases of existing 
 legislation than the patent fact of investigation disre- 
 garded and experience unrecorded. 
 
 The doctrine "of personal liability for injuries received 
 in the course of employment" was said to have been "im- 
 ported into England from Germany in an unmanufactured 
 
 249 
 
250 ACCIDENT PREVENTION AND RELIEF 
 
 The Spirit state and made up, perhaps not very artistically, into the 
 
 Workmen's Compensation Act of 1897.'^ (a) We have, in 
 preceding pages, enunciated its principles and policy in 
 the language of those who gave it being and under whose 
 leadership it assumed its final shape. Whether due to the 
 difference of viewpoint or condition, they seem to ap- 
 proach the problem full of the spirit of the Poor Laws. 
 It clings to their thought like burrs to a beggar's rags. 
 Their vision is fixed upon the "dependency" that may fol- 
 low injury. The employer becomes an instrumentality to 
 relieve indigence. The debates in Parliament, the speeches 
 from the stump which preceded the Act of 1897, and fol- 
 lowed its adoption, dwelt continuously upon the "depend- 
 ence" created by serious disability. "Relief for distress'^ 
 is the term which runs through ensuing reference to com- 
 pensation legislation in the reports of the Departmental 
 Committee of 1904 and the wider public discussion ante- 
 cedent to the broader law of 1906. The whole literature 
 expounding the virtues and vindicating the liabilities 
 created by Parliament presents the Compensation Act in 
 the guise of a gigantic scheme of poor relief. This is borne 
 out no less by the extrinsic evidence of public statements 
 than by the intrinsic characteristics of the statute. It 
 gives no consideration to the workman's injury; it salves 
 it only with limited pecuniary recompense. It neither 
 requires nor encourages, as does the German law^, medical 
 attention. It bears no relation to the prevention of in- 
 jury; it does not investigate its causes, and, knowing that 
 ignorance and neglect may permit trivial injuries to de- 
 
 (a) Law of Employer and Workman in England, Ruegg, Chap. V, 
 p. 146. 
 
PRIMAL DEFECTS OF BRITISH LEGISLATION 251 
 
 velop into serious disabilities, and that sound healing de- 
 pends upon first aid, takes no step to contribute to recov- 
 ery. It seems to consider the individual's wants but not 
 his needs. It regards the workman as one who must not 
 be permitted to become a public charge. Its thought is 
 concentrated upon making some individual relieve distress 
 which might require the aid of the state. It views the 
 whole problem in terms of charitable intervention. 
 
 How different is the German viewpoint. It thinks in German 
 terms of national policy as well as humanity. It studies ^'^'^p'^'"* 
 to meet the causes as well as the effects of work accidents, 
 and it regards each injured workman not only as a man 
 but as a national industrial asset, whose productive power, 
 when impaired, is to be restored as well as recompensed. 
 It meets the claim for injury with justice, but having 
 traced its origin to the circumstances of production, it 
 makes the collective agencies answer, and not the indi- 
 vidal possessing but limited control of its conditions. It 
 preserves and strengthens individual self-respect and in- 
 dependence by making compensation awarded, rest, not 
 upon need and distress, but upon a sturdy right to assist- 
 ance derived from personal contribution given, and the 
 state, having laid upon industry an obligation to provide 
 against accident and its consequence, leaves the respon- 
 sible parties to create the means of relief by joint contri- 
 bution, self-administered. 
 
 So much for the elementary theories and spirit of the 
 English system, and they are of no little consequence to 
 a nation like ours that prides itself upon the self-reliance 
 of its people. It is one thing to provide relief to which 
 individuals are justly entitled; it is quite another to give 
 
252 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 The I^ack of 
 Preliminary In- 
 formation and 
 Recorded 
 Experience 
 
 it under circumstances and conditions in wliich tlie most 
 admirable qualities of individual character suffer in the 
 taking. 
 
 But are the methods which have accompanied the es- 
 tablishment, operation and extension of English compen- 
 sation legislation worthy of our imitatfon? We face a 
 great task. Ought we not to go about it with that elemen- 
 tary caution which should characterize a prudent man in 
 an undertaking of ordinary importance? Yet what judg- 
 ment commends important action without knowledge. 
 Every nation of Continental Europe which has established, 
 much less extended its system of compensation, has done 
 so only after elaborate investigation directed and sus- 
 tained by trained minds. The German fortified each step 
 of his progress with the accumulated records of national 
 experience. Great Britain undertook a vast social experi- 
 ment, the introduction into an ancient system of novel 
 principles in antagonism with deep-rooted habits, customs, 
 mode of thought and traditions. It mixed its legislative 
 chemicals with anxiety and curiosity, but set no watcher 
 in the social laboratory to observe their reaction. Ten 
 years of national life passed under the continuing influence 
 of new obligations affecting the lives of millions of sub- 
 jects and yet the evidence of their effect is to be gathered 
 by the curious, only, from the scattered experience of in- 
 dividuals or the fragmentary information of private con- 
 cerns. A single committee investigated the effects of legis- 
 lative action, complaining as it probed of the difficulties 
 arising from the absence of information that should have 
 filled the public records, but the complaint passed un- 
 heeded, the defect remained unremedied, and the recom- 
 
PRIMAL DEFECTS OF BRITISH LEGISLATION 253 
 
 mendations of the only public body entitled to speak with 
 authoritative voice finds little in the subsequent legislation 
 of 1906 to suggest its own labors or conclusions, and con- 
 siderable evidence that they were either disregarded or 
 made the subject of contrary action. 
 
 The very terms defining individual liabilities and fixing 
 the financial burden of industry reinained in the new legis- 
 lation onerously indefinite, piling the costs of hidden con- 
 tingencies upon heavy existing charges. Injustice was 
 added to uncertainty by making that misconduct which 
 had been a bar to recovery under the Act of 1897 no bar 
 to compensation unless recklessness failed to result in 
 serious and permanent disability or death. 
 
 For the first time in English legal history the bar Recognition 
 
 ^ of Illegitimate 
 
 sinister was removed, the illegitimate became of right an claimants 
 equal competitor with the legitimate child in the distribu- 
 tion of parental compensation. No added right of action 
 was given to an illegitimate child under the common law 
 or statute. Here and here alone a right was given which 
 was denied under equally distressing circumstances out- 
 side the Act. Thus again the Act speaks in terms of de- 
 pendency and poor relief. 
 
 Great Britain has not followed the logic of her own 
 law. Making each employer accept the obligations of a 
 limited insurer, he possesses none of the privileges of in- 
 surance. He carries the risk without knowing the 
 premium and is thus forced to regard each employe as a 
 hazard, a circumstance which has wrought unspeakable 
 hardship upon elderly and defective workmen. To this 
 unhappy condition public attention was called by the re- 
 port of the Departmental Committee in 1904, and a remedy 
 
254 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Effect upon 
 the Employ- 
 ment of 
 Elderly and 
 Defective 
 Men 
 
 was suggested, but, like other recommendations of that 
 committee, it remained unnoticed. This distressing situa- 
 tion led Sir Edward Brabrook, late Chief Registrar of 
 Friendly Societies, a man of long experience and high 
 official position in the administration of the Act of 1897, 
 to denounce what he termed "the horrors'' of the Act, in 
 the address which he delivered to the International Con- 
 ference on Social Insurance at The Hague in September 
 1910. Dr. Collie, medical referee of the English Home 
 Office, at the same time and place, quoted the opinion of 
 the Local Government Board inspector, "that the Work- 
 men's Compensation Act has done more than anything else 
 in recent years to force men between fifty and seventy 
 years of age into the workhouse." (a) The Poor Law Com- 
 mission confirms this opinion by a similar finding in its 
 annual report for 1909. (b) Yet these unfortunate conse- 
 quences seem inevitably associated with raising individual 
 liability to an extreme point, for the employer, whatever 
 his sympathies, is forced into the situation where he must 
 retain the services of elderly and defective men at an en- 
 hanced premium, or pitilessly supplant them with younger 
 men, representing diminished risk and proportionate re- 
 duction of overhead expense. English experience seems 
 to suggest that this result can be avoided in any applica- 
 tion of the compensation principle only by eliminating per- 
 sonal liability and substituting for it contribution to a 
 solvent insurance fund. 
 
 (a) Bulletin des Assurances Sociales. Conference Internationale de La 
 Haye, p. 154. 
 
 (b) Report Poor Law Commission 1909, p. 220. 
 
PRIMAL DEFECTS OF BRITISH LEGISLATION 255 
 
 Avowedly intended to provide compensation for acci- inclusion of 
 
 Disease by- 
 dent, the Act has in fact made the employer by decision construction 
 
 liable for disease, for the English cases make it apparent 
 
 that compensation is frequently paid for accidents actually 
 
 due not to work, but the physical state of the workman. 
 
 The Act has thus overshot its mark and covered a field 
 
 greater than its purpose. 
 
 Can a measure of this nature be a proper model for 
 the imitation of our states? 
 
 We are dissatisfied with the waste and bitterness which 
 follow in the wake of litigation, but this Act neither stems 
 waste, removes elements of personal antagonism nor pre- 
 vents resort to the courts. We desire a single liability. 
 If we imitated the terms of the Act we should find our- Features 
 
 Unworthy of 
 
 selves possessed of three methods of legal controversy. imitation 
 
 We want to bring employer and employe together in a 
 joint effort to reach the causes and alleviate the conse- 
 quences of work accidents, but this measure neither pre- 
 vents accidents nor secures the moral or pecuniary con- 
 tribution of employer and workman toward their relief. 
 
 If we are to have compensation at all, we wish to assure 
 that of the workman of the small employer as well as the 
 great. This measure has never secured that result. We 
 want a system that assists in the restoration of impaired 
 working capacity by prompt medical relief, but this Act 
 gives no heed to the injury save to make it the basis of a 
 pension. Common sense suggests that any liability created, 
 however great or small, should be definite and stable, but 
 the obligations of the Act are fluctuating and uncertain 
 from its very nature. W^e must not create a condition 
 adding new difficulties in securing employment to the 
 
256 ACCIDENT PREVENTION AND RELIEF 
 
 Effect of the handicaps of age and disease. This Act created to relieve 
 
 Act 
 
 unsaiutaxy the "dependency'' of the injured, has made an army of 
 dependents among the maimed, the halt and the infirm. 
 Above all, we cannot afford in the establishment of any 
 system or the formulation of any legislation involving the 
 compensation principle, to proceed withomt due investiga- 
 tion, acquainting ourselves with our own problem before 
 we undertake its solution, and illuminating each step of 
 our progress by the accumulated experience of our march. 
 
 256 
 
CHAPTER FOURTEEN 
 
 Findings ancl Recommenaations or the Committee 
 
CHAPTER XIV 
 
 Findings and Recommendations of the Committee 
 
 From the investigations herein set forth, your Com- 
 mittee finds: 
 
 That limited compensation for personal injury received Principles 
 
 of European 
 
 in the course of employment is assured in the chief states Legislation 
 of Europe and many of the British colonies. Such legis- 
 lation, substantially, predicates: 
 
 That accidents, during work, frequently arise from un- 
 avoidable risks inherent in the nature and circumstances 
 of modern production ; that the economic consequences of 
 such injuries should be borne primarily by the employ- 
 ment in which they occur and ultimately by society in 
 whose service they are incurred and not entirely by the 
 workmen to whom they occur ; that this may be beneficially 
 accomplished by transferring a limited charge for assur- 
 ance against impairment of working capacity to society^ 
 as a cost of production, thus making certain the relief 
 of the employe without unduly burdening the employer. 
 
 That the waste, delay and harmful bitterness engen- 
 dered by litigating claims for personal injury in a legal 
 
 259 
 
260 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 system based upon fault as the sole ground of recovery 
 justify and require that the state in the public interest 
 make other equitable provision for the speedy adjustment 
 of such controversies. 
 
 That causes of injury are to be anticipated and averted 
 no less than consequences. Therefore, serious misconduct 
 jeopardizing the life or limb of others or self inflicted in- 
 jury diminishes compensation or denies it. 
 
 That all employments are included save in exceptional 
 instances where difficulties of application delay extension. 
 
 All European legislation embodying these ideas in 
 variously qualified form, is neither framed with equal wis- 
 dom nor administered with like success. But the admir- 
 able enforcement of these principles in many states sup- 
 plies conclusive evidence that rightly applied they are 
 socially, economically and industrially advantageous, and 
 if adapted to our form of government, mode of thought and 
 conditions of labor, would confer undoubted benefit. 
 
 II 
 
 Accident 
 Prevention 
 and 
 Medical Aid 
 
 That the advantages perceived were secured and are 
 maintained only in accompaniment with a sound, vigorous 
 and scientific system of accident prevention, obtaining 
 public and private co-operation, with suitable provision in 
 all cases of personal injury for prompt and efficient first 
 aid treatment provided by the employer, and of which the 
 injured person may be required to avail himself under 
 penalty of losing or diminishing subsequent compensation. 
 
RECOMMENDATIONS FOR ACTION IN UNITED STATES 261 
 
 in 
 
 That sound compensation laws rest upon a solid foun- carefui inves- 
 tigation Essen- 
 
 dation of fact obtained through tlie deliberate and im- tiai to sound 
 
 ^ Legislation 
 
 partial investigations of trained men, and, in the opinion 
 of recognized European authorities, require for success- 
 ful administration the continuous- collection and compila- 
 tion of statistics relating to every circumstance of acci- 
 dents and their compensation, and the progressive applica- 
 tion of such ascertained experience. 
 
 IV 
 
 That the German empire, which first applied the prin- High vaiue of 
 
 German 
 
 ciple of assured compensation, is, among all the countries statistics and 
 
 Experience 
 
 of Europe, the most practically successful in its applica- 
 tion ; that it alone compiles, possesses and has continuously 
 applied the record of its experience to the development of 
 a scientific system of accident prevention and compensa- 
 tion. That its accumulated statistics and tested methods 
 are of compelling influence on the legislation of Europe. 
 That its conditions of employment and ratio of agricul- 
 tural to industrial workers, its progressive application 
 of mechanical forces to new employments, make its meth- 
 ods and information a profitable study for ourselves. That 
 while many details of its administration are neither ap- 
 plicable nor desirable, the chief principles of the German 
 system of accident compensation may be adopted in our 
 respectivi^ states by voluntary action or through permissive 
 legislation and, in a large de^jree compelled by statute. 
 
262 
 
 ACCIDENT PKEVENTION AND RELIEF 
 
 V 
 
 A Solvent 
 
 Insurance 
 
 Fund 
 
 Preferable 
 
 to Individual 
 
 Liability 
 
 That assurance against loss of working capacity is the 
 basis of all European systems of compensation, avowedly 
 in most systems, logically in all others, declared in German 
 legislation, implied in English legislation. That each 
 European system fails in the practical execution of its 
 theory in the proportion that it rests compensation of 
 injury upon personal liability and not upon contribution 
 to a solvent insurance fund from which awards are paid. 
 That if every employer becomes a limited insurer in law, 
 he should become an insurer in fact, and the obligation of 
 contributing to a compensation fund or providing an ac- 
 ceptable form of insurance should become a substitute for 
 personal liability. That contribution to a common fund, in 
 accordance with the ascertained hazard of the employment, 
 assures compensation and makes it a definite charge. 
 That mere increase of personal liability with optional 
 insurance enlarges the burden of the great employer, with 
 no assurance of recovery from the small one. That the 
 creation of a compensation fund administered by the con- 
 tributors or the state, but preferably the former, permits 
 provision for simple, cheap and rapidly moving machinery 
 in the adjustment of claims, eliminates the bitter antagon- 
 ism and social friction arising from opposing interest in- 
 separable from personal liability, covers hard cases with 
 out excessive cost, allows without undue or inequitable 
 burden, a higher rate of disability and death benefits and 
 permits the calculation of a fixed annual charge for legal 
 risk capable of decrease by accident prevention. 
 
RECOMMENDATIONS FOR ACTION IN UNITED STATES 263 
 
 VI 
 
 We find that limited compensation through insurance Methods of 
 
 Insurance 
 
 is successfully obtained: through the creation of a fund 
 administered by the state, to which employer and employe 
 contribute and from which compensation is paid ; or 
 through a fund supervised by the state to which employer 
 and employe contribute and in the administration of which 
 they are represented in proportion to their contribution; 
 or through voluntary mutual associations, either of em- 
 ployers alone or of employers and employes, organized 
 under permissive legislation; or in private insurance as- 
 sociations in which the employer may carry his risk in 
 those nations where compensation is assured by the ex- 
 tension of personal liability. 
 
 That the most efficient, economic and progressive in- 
 surance system is one in which an intimate relationship 
 is established and maintained between shop management, 
 insurance management and the supervision of accident 
 prevention, and in which rates can and will most closely 
 conform to the accident record of the individual employer. 
 
 VII 
 
 We believe those systems most equitable and expedient contribution 
 which require minor contributions from employes. They 
 alone provide a justly proportionate distribution of the 
 pecuniary burden, assured dual interest in the discourage- 
 ment of fraudulent claims and mutual co-operation in the 
 practical prevention of accidents, for which employer and 
 employe are jointly responsible. They provide a necessary 
 
264 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 protection against the contamination of tliose qualities of 
 thrift and self-reliance which have ever been regarded as 
 among the most valuable assets of American character. 
 
 Creation of a 
 Single Liability 
 Essential 
 
 VIII ^ 
 
 We find compensatory legislation is intended to ex- 
 clude or purposely endeavors to discourage, save in excep- 
 tional cases, the use of pre-existing remedies at law. The 
 creation of a single liability or a single obligation to con- 
 tribute to a compensating fund, is the purpose and evident 
 tendency of all foreign legislation. A single liability is 
 essential to the satisfactory operation of the compensatory 
 principle and its adoption should therefore be accompanied 
 by the repeal, as far as possible, of all other remedies. 
 
 Compensation 
 Principle 
 Should Apply 
 to All 
 Employments 
 
 IX 
 
 We find in the complete statistical record of the Ger- 
 man empire covering a period of 25 years and sustained by 
 the less complete returns of other European countries and 
 the relative rates of private insurance therein, that we 
 must readjust our conventional notions of the compara- 
 tive hazard of various employments. European and Ca- 
 nadian (a) official statistics and the comparative personal 
 accident rates of American i^urance companies all indi- 
 cate a higli percentage of ac(Ants in agricultural as well 
 as industrial pursuits. If,>therefore, any employer is to 
 become an insurer against accident in employment, 
 all employers should bear the same burden in 
 
 (a) See Appendix, page 377. 
 
RECOMMENDATIONS FOR ACTION IN UNITED STATES 265 
 
 proportion to the actual hazard of their particular pur- 
 suit. We find that the application of the principle of 
 compensation should be universal, or it places unequal 
 and arbitrary burdens upon classes of employers and de- 
 nies participation in the benefits of its remedial pro- 
 visons to vast classes of employes. 
 
 X 
 
 We find that the amount of compensation required Limitation of 
 
 Compensation 
 
 under the various European systems is not regarded as a and Medical 
 
 ^ '^ ^ First Aid 
 
 complete indemnity but as a substantial expression of the 
 impairment of earning capacity. That in the better sys- 
 tems it is neither allowed nor intended to recompense 
 trivial injuries nor breed paupers by corrupting thrift. 
 That to this end a reasonable waiting period is established 
 between the reception of injury and the allowance of com- 
 pensation; that such precaution alone provides efficient 
 defense against the conscious or unconscious exaggeration 
 of slight injury and safeguards self-reliance. We find fur- 
 ther, however, that during such waiting period, from the 
 moment he has notice of accident, the employer should 
 provide first aid and necessary medical attendance, thus 
 preventing trivial injuries from becoming serious disabil- 
 ities throu2:h iornorance or neglect. 
 
 ^to" "fe" 
 
 
 We find that as an essential feature of administration, 
 all European systems provide for cheap and expeditious 
 adjustment of claims. That employer and employe are 
 
266 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Adjustment 
 of Claims 
 
 encouraged to reach an agreement. That in the event of 
 a dispute as to the facts or application of the law, resort 
 is had to arbitration, the finding of the arbitrators on ques- 
 tions of fact being final and appeal permitted only on ques- 
 tions of law. We believe similar provisions advisable, 
 practicable and attainable through the agency of contract 
 and the creation of arbitrators, by conferring powers of 
 arbitration upon our judges or persons chosen by the dis- 
 putants, subject to ultimate rights of action which are 
 likely to be exercised or remain dormant in accordance 
 with the practical operation of such preliminary aids to 
 agreement. 
 
 XII 
 
 Necessity 
 of Uniform 
 Principles of 
 Compensation 
 Among Our 
 States 
 
 We feel called upon to emphasize that any application 
 of the compensatory principle in our own country requires 
 assurance of substantially uniform legislation by the states 
 of the Union. The establishment of a variety of systems 
 differing in form and substance and creating new liabili- 
 ties, varying in nature and degree, would produce condi- 
 tions too obviously harmful to require amplification. 
 
 XIII 
 
 A Sound 
 Policy of 
 Compensation 
 a Primary 
 Consideration 
 
 We are conscious that the introduction of principles 
 implying systematic compensation for accidents of 
 employment into our form of government bristles with 
 legal difficulties. We are not here concerned with their 
 consideration or discussion; we are primarily interested 
 in the selection of a sound policy. We believe, how- 
 
RECOMMENDATIONS FOR ACTION IN UNITED STATES 267 
 
 ever, that at the present time and during the period 
 of investigation which must necessarily precede the 
 adoption of a satisfactory system, voluntary action by 
 private employers should receive public encouragement. 
 While our legislatures are engaged in deliberating over "Persuasive" 
 the wisest method of exercising their powers of com- 
 pulsion, splendid forces may be set in operation if they 
 will give attention to their opportunities for persuasion. 
 Pending the formulation of a public system, the voluntary 
 adoption of equitable schemes can be expedited by lessen- 
 ing the liabilities of employers who guarantee just com- 
 pensation as well as by threatening the legal defenses of 
 employers who do not. 
 
 We therefore conclude from the better results of Euro- ^ sound 
 pean experience that for reasons of justice, economy and sy^em ^^^^°" 
 well-being we ought to endeavor to substitute for a system rn^Desh-abie 
 in which redress for injuries received in employment rests 
 upon established fault, one in which limited compensation 
 is assured for all such injuries, by methods making pos- 
 sible such broad distribution of the burden as will rest no 
 harmful weight upon individuals, and protect and encour- 
 age the careful employer. W^e believe assured limited 
 compensation for Avork injuries to be a desirable and nec- 
 essary end, to be successfully executed through a method of 
 insurance clearly providing an equitable, certain and de- 
 finite distribution of risk. 
 
 No scheme can be complete or satisfactory which does Accident 
 
 Prevention 
 
 not inseparably associate prevention with compensation, inspection 
 
 .. .,. ,. 1 • 1 , , -I .J ^"^ Education 
 
 authorizing intelligent and impartial state and private 
 inspection, arousing public interest and directing the pub- 
 lic mind to the importance of averting accident, an object 
 
268 ACCIDENT PREVENTION AND RELIEF 
 
 to be attained through municipal and state museums of 
 safety appliance and the continuous compilation and pub- 
 lication of accident statistics. 
 
 Successful legislative action throughout Europe has 
 been preceded by deliberate and painstaking investigation, 
 extending in many instances through years of effort in the 
 collection and comparison of information. We are fortu- 
 nately able to avail ourselves of the most practical features 
 of the Old World's labor and experience. But we should 
 make a start for ourselves here and now, providing at once 
 for the accumulation in our respective states of that ac- 
 curate information Avhich is a basic necessity for intelli- 
 gent action. Having once determined upon a rational pol- 
 icy of compensation, we believe rapid progress can be made 
 in giving it appropriate legal form and adapting it to our 
 customs and institutions. We should act now and as rapid- 
 ly as is compatible with the greatness and complexity of 
 the subject and its intimate relation to the prosperity of 
 the employers and workmen of our country. 
 
 We do not believe we can draw our discussion to a close 
 more fittingly than by quoting from an English official 
 source a statement that at once epitomizes our problem and 
 contains a final word of admonition : 
 
 "Whatever may be the true view as to the inci- 
 dence of the burden of compensation for accidents, 
 it seems plain that if the cost thrown, at all events 
 in the first instance, on the employer is excessive, 
 the ultimate loss consequent thereon will fall with 
 equal or greater weight upon the workman* either 
 by diminution of wages or loss of employment, or 
 
RECOMMENDATIONS FOR ACTION IN UNITED STATES 269 
 
 loss througli the insolvency of the employer. The 
 problem, therefore, is to attempt such an adjustment 
 of the burden as will enable the great industries of 
 the country to be carried on without an excessive 
 share of the losses occasioned by industrial acci- 
 dents being thrown either on the employer or the 
 employed." 
 
APPENDIX 
 
 PART ONE 
 
 Letters from Prominent German Autkoritics on tLe Practical 
 
 Working of tLe German Social Insurance System, 
 
 witk Special Reference to Accident 
 
 Insurance 
 
APPENDIX 
 
 PART I 
 
 However fair and unprejudiced an inquiry is, the personal view- 
 point of the investigators is sure to influence the findings. 
 
 This report is made from the viewpoint of the humane, pro- 
 gressive employer, and is intended primarily for the information of 
 employers. By humane and progressive employer is meant the man 
 who, while having achieved success as a manager of men or captain 
 of industry, places humanity, patriotism and good citizenship above 
 personal or class interest. 
 
 In order that the reader may have the opportunity of drawing his 
 own conclusions, we print herewith a number of letters written by 
 men of great importance in European systems of workmen's compen- 
 sation for occupational accidents. We call special attention to the 
 first two letters, the writers being Dr. Kaufmann, President of the 
 German Imperial Insurance Department, and Dr. Spiecker, Chairman 
 of the League of Employers' Associations and President of the Sie- 
 mens & Halske Company. There are no bigger and broader men any- 
 where connected with the subject under consideration and their readi- 
 ness to help the National Association of Manufacturers in its search 
 for information and education should be hailed as the first evidence 
 of international co-operation among employers' associations. 
 
 That co-operation of this kind between European and American 
 employers can be of great service to all concerned, requires no 
 prophet's mind to foretell. 
 
 273 
 
274 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 TRANSLATION OF LETTER FROM DR. PAUL KAUFMANN, 
 PRESIDENT GERMAN IMPERIAL INSURANCE 
 DEPARTMENT 
 
 Success 
 
 Achieved 
 
 Through 
 
 Bismarck's 
 
 Personality 
 
 Compulsory 
 Insurance 
 Best 
 
 Berlin, October 11, 1910. 
 
 My Dear Mr. Schwedtman: 
 
 In view of the enlightened interest which 
 you have shown in the German system of 
 workers' social insurance during our various 
 conferences, I gladly comply with your re- 
 quest to sum up the principles upon which 
 this great monument was built. 
 
 The underlying thought of German 
 Dk, Paul Kaufmann 
 President imperiaiinsurance workers' social insurance is a harmonious 
 
 Department, Berlin combination of compulsory and voluntary ac- 
 
 tion. Workers' insurance is obligatory under the law and the obligatory 
 principle is indispensable for workers' insurance on a large scale. The 
 obligatory principle was very much opposed for a while after the 
 memorable Imperial message of November 17, 1881. Only through 
 the overpowering personality of Prince Bismarck could this opposition 
 be overcome. 
 
 '^oday no further doubt exists in Germany as to the necessity of 
 the obligatory principle. There is a growing demand for the exten- 
 sion of obligatory insurance to the middle classes. The obligatory 
 principle has been recognized, not only in Germany but by other 
 nations, notably at the last International Insurance Congress in Rome. 
 
 Far-reaching freedom of action is an important part of the Ger- 
 man obligatory system. Workers' insurance is carried out through 
 legally incorporated organizations with extensive self-governing privi- 
 leges. Accident insurance rests in the hands of employers' associa- 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 275 
 
 tions. Prince Bismarck directed that these employers' associations 
 must be given the greatest possible freedom. They must be kept free 
 from unnecessary restraint, bureaucratic control and red tape. 
 
 In keeping with these directions employers' associations were Legal Powers 
 given complete self-administration and were equipped with the neces- IssoSations^ 
 sary legal powers to control their members and enforce compliance 
 with regulations by fines and otherwise. This holds good in agri- 
 culture and forestry, as well as in the industries, and in invalid- 
 ity and accident insurance. The men holding the honorary positions 
 as leaders of these associations have been a strong and influential 
 force in the progress and success of the insurance system. 
 
 It is essentially the principle of self-administration that takes 
 away the objection to compulsion. German employers have carried 
 the insurance burdens willingly. The exacting oflEices of elected lead- 
 ers have been carried in a spirit of patriotic duty. To-day the ten- 
 dency among employers is to go further than compliance with legal 
 requirements. Many associations have pushed workers' welfare much 
 beyond their legal duties. This is one of the most gratifying features 
 
 accompanying our social legislation. To-day employers' associations — „ 
 
 Harmonious 
 
 industrial and agricultural — work in close harmony with state, terri- Relations with 
 
 Government 
 torial, city and country officials toward improving the conditions of Authorities 
 
 the poorer classes. 
 
 Social insurance has indeed been a school of social progress for 
 the whole German nation. Particularly pleasing has been its influence 
 upon the workers. They have carried their burden of the cost of insur- 
 ance and naturally they have taken part in conducting the system. They 
 are represented jointly with employers in arbitration courts and final 
 appeal courts. The close contact established between employers and 
 workers has brought about better relationship. They have worked to- 
 gether in every way with understanding and without prejudice, and it 
 
 XI J. 1. T- X Influence of 
 
 is no doubt a result of our social insurance that the feeling between gystem on the 
 
 employers and workers is growing more friendly right along and that Workers 
 there is much less industrial strife here than elsewhere. 
 
276 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Harmony all 
 Around 
 
 Facts and 
 Figures 
 
 Prevention 
 Better Thian 
 Cure 
 
 The happy combination of compulsion and voluntary action has 
 also worked out well in the relation between the insured, the insurer 
 and the state. Respect for legal authority on the one side and recogni- 
 tion of legal autonomy on the other have produced complete har- 
 mony all around which has never been disturbed for a moment, and 
 which is so essential to success. 9 
 
 You must have been impressed with the evidences of the harmon- 
 ious relations between employers and government officials during your 
 presence at the celebration of the 25th anniversary of our accident in- 
 surance system; the evidences of our standing shoulder to shoulder, 
 which were specially noticeable through spontaneous and enthusiastic 
 manifestation of confidence and harmony with state insurance officials 
 that were received from the members of employers' associations. 
 
 From your studies you understand in a general way the manifold 
 benefits of our insurance system. Nevertheless, I want to call at- 
 tention to a few facts and figures. Up to December 1909, the com- 
 plete system (accident, sickness and invalidity insurance) paid $1,925,- 
 000,000 to 94,000,000 sick, injured, invalidated workers and their de- 
 pendents. The complete system pays out daily $475,000 and has accu- 
 mulated reserve funds amounting to $540,000,000. These figures give 
 an indication of the economic importance of social insurance. 
 
 The wisdom of giving employers' associations all possible free- 
 dom of action becomes especially evident in two directions, namely: 
 accident prevention and systematic care of the injured and sick. 
 Recognizing that it is of prime importance to prevent injury since 
 compensation will never replace a father who has been killed, or make 
 up for lost limbs, state officials and officers of employers' associa- 
 tions have concentrated their combined energies upon prevention, 
 and wonderful have been the results. ^ Scientific accident prevention 
 is now recognized as a special and important branch of technical 
 engineering. Invention and prevention have gone hand in hand in 
 this work as advance agents of civilization. 
 
 Equally important has proven systematic care of sick and injured 
 workers, in fact, it has created a new special field for the medical 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 277 
 
 profession. Without the aid of this new agency our present promising special Field 
 
 campaign against tuberculosis would be impossible. The workers' *°^ Medical 
 
 Science 
 lives preserved in this manner mean maintenance and increases of 
 
 our national resources, and in this way give plentiful returns for the 
 heavy financial burdens which social insurance place upon our eco- 
 nomic structure. It is not an accident that the unprecedented expan- 
 sion of German commerce and industry and the wonderful increase 
 in the economic welfare of the nation during the last twenty years have 
 happened concurrently with thorough-going improvement in the con- 
 dition of our workers. There is a close connection between the two 
 
 events. The successful handling of the labor question through social 
 
 Germany's 
 insurance is one of the strongest factors in Germany's constantly Prosperity 
 ... Helped by 
 
 growing industrial progress. May Germany find among your country- system 
 
 men active allies in the direction of its arduous task for reform! 
 
 The United States of North America can build no better monu- 
 ment of its strength and idealistic sentiment than through a success- 
 ful solution of the problem of workers' social insurance. That this 
 may take place soon is the heartfelt wish of 
 
 Yours very truly, 
 
 (Signed) Dr. Paul Kaufmann, 
 President Imperial Insurance Department. 
 
278 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 TRANSLATION OF A LETTER FROM DR. SPIECKER, 
 
 PRESIDENT OF SIEMENS & HALSKE CO. AND CHAIRMAN OF 
 
 THE LEAGUE OF GERMAN EMPLOYERS' ASSOCIATIONS 
 
 Bismarck's 
 Slogan 
 
 Benefits Em- 
 ploye and 
 Employer 
 Alike 
 
 Berlin, Oct. 7, 1910. 
 Mb. F. C. Schwedtman, 
 My Dear Sir: 
 
 In further reference to our tod?; , con- 
 ference regarding workers' accident ^ "4 in- 
 validity insurance, I want to point c 
 lay special stress upon the thought \» 
 voiced in the address of welcome on tl "'"h 
 anniversary of our system in the Reichstag 
 
 „ _ , „ building a few days ago. 
 
 Dh. f. a. Spiecker 
 
 Chairman League of Employ- During the preliminary consideration of 
 
 ers' Associations, Berlin ^, . , . , -r^ . -,-». i 
 
 the social insurance laws Prince Bismarck 
 coined the classical phrase "Freedom of Organization, Obligatory 
 Results." At that time German industries accepted "obligatory results" 
 under the promise of "freedom of organization," which means Employ- 
 ers' Associations' self-government of their workers' compensation in- 
 surance system. This principle seemed to give the best promise of 
 meeting the desired statutory insurance requirements, the underlying 
 broad principles of humanity, and, above all, effective accident preven- 
 tion. Today, after twenty-five years' experience, the correctness of this 
 judgment is evident. 
 
 Twenty-five years have changed "obligatory results" to voluntary 
 performances. Today everybody who views the situation without prej- 
 udice must acknowledge, and does acknowledge, that the task of the 
 employers' associations in this field is a great blessing not only to the 
 workers, but to the industries. It is perfectly evident today that we 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 279 
 
 have secured higher efficiency in our industries due to increased 
 workers' efficiency, all brought about by relieving our workers from 
 worries and distress on account of sickness, injury, superannuation and 
 invalidity. 
 
 You will remember that each time when I gave voice to this senti- 
 ment during my celebration speech the whole assemblage heartily ap- 
 plauded and this must convince you that my sentiment and experience 
 are in keeping with that of German industries. 
 
 Regarding the relationship of the Imperial Insurance Office to the 
 self-governed employers' insurance associations, please remember that 
 every speaker during the recent celebration laid stress upon the fact 
 that . . relationship is, and has been, thoroughly satisfactory during 
 thp • ■" twenty-five years. The government insurance department has 
 
 'ts proper function in supervising watchfulness to secure Does not 
 ^ .,_r compliance with the requirements of the law. We have had no ^^^'^ qIi^. 
 intc./ence with the management of our associations. The relation be- Government 
 tween the two institutions is proof of mutual confidence as the basis 
 for complete and harmonious co-operation. 
 
 Very truly yours, 
 (Signed) Dr. Spiecker. 
 
 Chairman League of German Employers' Associations. 
 
280 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 TRANSLATION OF LETTERS FROM IMPORTANT MEN IN 
 
 GERMANY 
 
 Cologne-Bayenthal, August 23, 1910. 
 
 Workers Ap- 
 preciate 
 System 
 
 Mb. F. C. Schwedtman, 
 
 Berlin. 
 Dear Sir: 
 
 In reply to your favor of the 20th inst., I beg to say that I sent a 
 letter a few days ago to Professor Manes, in which I expressed my 
 views concerning the German Accident Insurance System. You have 
 no doubt received this letter from him, and I can, therefore, only add 
 the following: 
 
 (1) The German Accident Insurance System has proven very sat- 
 isfactory both from a business and a humane point of view. 
 
 (2) I would not consider it advisable to abolish our accident com- 
 pensation insurance laws. 
 
 (3) It is my belief that compulsory insurance is necessary in 
 order to bring about a general enforcement of the system. 
 
 (4) I am convinced that the overwhelming majority of German 
 workingmen employed in industrial occupations, particularly those pos- 
 sessing special skill, and, therefore, a higher order of intelligence, 
 thoroughly appreciate the benefits of accident insurance, although a 
 great many of them are afraid to express their opinion freely on ac- 
 count of the pressure which is brought to bear on them by their or- 
 ganizations. 
 
 (5) Not one-fourth of the German workingmen are organized as 
 yet. I am sure that if we had not adopted our accident insurance 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 281 
 
 laws 25 years ago, workingmen's organizations would be a good deal Growth of 
 
 Unions 
 more numerous and much stronger than they are today. Retarded 
 
 (6) The workingmen's indirect contribution to accident insurance 
 through the so-called "Krankenkassen" (sick funds), out of which the 
 compensation for accidents is taken during the first thirteen weeks, is 
 
 of little importance. Simulation is checked by selecting competent simulation 
 physicians and exercising strict supervision over those injured by Djfflcult 
 accident. 
 
 (7) I would not be in favor of increasing the workingmen's con- 
 tribution to accident insurance, since in the long run their contribu- 
 tion is paid by the employers anyway, and I do not see any reason 
 why the workingmen should be given the impression that the money 
 
 comes partly out of their own pockets. The moment this is done they 
 
 Workers' 
 will want to take part in the management of the Employers' Associa- share Large 
 
 tions, and no end of trouble would be the result. 
 
 (8) If an accident insurance system is to be adopted by the in- 
 dustrialists of a country I think it would be desirable, though not nec- 
 essary, for them to call upon the employers of farm help to co-operate 
 with them towards that end. 
 
 (9) In my opinion, the above views are shared by a majority of 
 the German employers. 
 
 Yours truly, ' . 
 
 (Signed) Ernst Lechner. 
 Chairman Machine Builders' and Hardware Manufacturers' Association. 
 
282 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Mainz, September 1, 1910. 
 
 System Ideal 
 
 Compulsion 
 Necessary 
 
 Workers 
 Satisfied 
 
 Mb. F. C. Schwedtman, 
 
 Berlin. 
 Dear Sir: 
 
 Answering your favor of the 20th ult., I beg to say the following: 
 In my opinion, the accident insurance system prevailing in Ger- 
 many at the present time is not only good, but ideal. Changes, ex- 
 cept in minor details, do not seem to me to be either necessary or 
 advisable. The system has stood the test both from a humane point 
 of view , and otherwise. To think of abolishing it would be absurd. 
 Insurance under a national system of this kind must, in my opinion, 
 be compulsory, if success is to be achieved. Experience has shown 
 that, if left to the individual employer's discretion, insurance is not 
 taken out by a great many. Not only is this detrimental to the inter- 
 ests of the workingmen of such employers, but obviously other em- 
 ployers, more keenly alive to their duties and responsibilities, are also 
 affected. 
 
 In spite of the efforts of social democracy to minimize the benefits 
 of accident insurance, German workingmen are undoubtedly better 
 satisfied under the present system than they would be without it. At 
 least, those who have experienced the benefits afforded by the system 
 feel it as a blessing. Class distinctions have been alleviated by the 
 adoption of accident insurance laws. It was not without reason that 
 the French social democrat Herve exclaimed, at the Socialist Congress 
 in Stuttgart several years ago, pointing to the well-satisfied appear- 
 ance of the German workingmen: "They are no Proletarians at all, 
 but belong to the Bourgeoisie." Other indications that the German 
 workingmen are coming to their senses are also in evidence. At any 
 rate, the effects of accident insurance and accident prevention are 
 making themselves felt socially in a most favorable manner. As the 
 compensation is paid out of the Sick Fund during the first 13 weeks, 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 283 
 
 the workingmen bear a certain part of the cost of accident insurance, 
 their contribution to this Fund being two-thirds. This constitutes 
 only a very small fraction of the total expense of sickness insurance 
 and even a smaller part of the cost of accident insurance, however. 
 It was more on account of their being local organizations and, there- 
 fore, better able to render prompt aid in case of accident, that the 
 Sick Funds were called upon to render the initial payments to injured 
 workers. Again, the fact should not be overlooked that the employers 
 who, nominally, only pay one-third of the contributions making up 
 the Sick Fund (the other two-thirds being paid by the workingmen jn the End 
 themselves) in reality pay all of it, since the adoption of laws com- p^^i^^Al? 
 pelling workers to insure themselves against sickness through the so- 
 called "Krankenkassen" (Sick Funds) resulted in a general increase 
 in wages. The assertion may safely be made that the cost of any 
 system of compensating workingmen must, in the end, be borne by 
 the employers, directly or indirectly. 
 
 Simulation is no doubt diminished by the fact that the first pay- 
 ments are made out of the Sick Fund, the officers of which, being on 
 the ground, are in a position to ascertain the true extent of injuries 
 caused by an accident. The Employers' Associations, however, pro- simulation 
 tect themselves very effectively against simulation by means of sys- 
 tematic medical surveillance (if necessary in sanitariums, etc.) and 
 in other ways by keeping in touch with the injured man through his 
 former employer and their own officials. 
 
 In my opinion, it would be inadvisable to increase the working- 
 men's contributions to accident insurance, as such contributions 
 would eventually come out of the employers' pockets, anyway, and 
 would, therefore, only cause needless complications. The German 
 Accident Insurance System is properly based on the theory that the 
 damage caused to life and limb by industrial accidents must practi- 
 cally be made good by the employers, as part of their manufacturing 
 cost. 
 
 On general social principles it is undoubtedly desirable that agri- 
 cultural occupations are included in the accident insurance system. 
 
284 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Statistics 
 Show Degree 
 of Hazard 
 
 It is, however, of no economic importance to the industrial employer 
 whether or not agricultural workers are also insured against accidents 
 the same as those engaged in industrial occupations. The only effect 
 the non-insurance of agricultural workers can have is to increase the 
 number of men available for industrial activities. 
 
 It is my belief that to operate an accident insurance system suc- 
 cessfully, whether it applies to industry or to agriculture, or to both, 
 it is necessary to organize the employers into groups and to ascertain 
 the varying degrees of hazard for each occupation by means of care- 
 fully kept statistics, on which the cost of the insurance to each em- 
 ployer should be based. 
 
 There is no doubt in my mind that German employers are unani- 
 mous in their opinion with reference to the points discussed above. 
 
 Yours very truly, 
 (Signed) Martin May, 
 Chairman Employers' Association for the Leather Industry. 
 
 Berlin, August 24, 1910. 
 
 Adequacy of 
 Compensa- 
 tion 
 
 My Deab Peofessor Manes: 
 
 In reply to your inquiry of the 22nd inst., I beg to say that the 
 German System of Accident Insurance, in my opinion, answers its 
 purpose admirably. The object of this system is to make the employers 
 instead of the workingmen bear the economic consequences of indus- 
 trial accidents, the underlying principle being that the former are the 
 principal beneficiaries of industrial activity and, therefore, responsi- 
 ble for the damage to life and limb caused by accidents. The rule 
 established to pay the workingmen two-thirds of their previous earn- 
 ings in the case of complete disability seems to me to be a fair one. 
 
 In fixing the maximum compensation at two-thirds of the annual 
 earning capacity the fact has been taken into account that working- 
 men can considerably reduce their living expenses when not at work; 
 
LETTERS P^ROM PROMINENT GERMAN AUTHORITIES 285 
 
 at the same time they are less apt to "take chances" in their work 
 than if the compensation amounted to their entire earnings. 
 
 Another still more valuable feature of our accident insurance sys- 
 tem is the fact that only employers in the same line of industry and 
 operating under more or less the same hazards are organized into one org-anizing 
 
 insurance association. It is obvious that manufacturers in the same Employers by 
 
 Industries 
 
 line of industry know best just how to meet the element of danger 
 in their establishments and how to devise the proper accident pre- 
 vention measures based on practical experience. 
 
 Furthermore, it is a very good plan to let the employers manage 
 this branch of insurance themselves without giving the authorities too 
 much chance for interference. 
 
 It also seems to me to be the correct point of view to base the 
 workingman's right to compensation solely on the fact that an acci- 
 dent has occurred, regardless of who is responsible for it. Formerly 
 
 the law required that the employer's responsibility for an accident 
 
 Cause of Ac- 
 be proven and this led to unreasonable demands and to conditions in cident Imma- 
 
 general which became practically unbearable. All this was due to 
 the fact that the laws of the land seemed to be in conflict with the 
 ever-growing sense of social responsibility. Our present accident 
 laws have successfully met this situation. 
 
 Trusting that the above remarks will assist you in your investi- 
 gation, I beg to remain, 
 
 Yours etc., 
 
 (Signed) Dr. W. Waldschmidt, 
 
 Director Ludwig Loewe & Co. 
 
286 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 WoLFSwiNKEL, September 21, 1910. 
 
 Could not 
 Conceive of 
 Better 
 System 
 
 Strengthens 
 Employers' 
 Feeling of 
 Solidarity 
 
 Mr. F. C. Schwedtman, 
 
 Berlin. 
 Dear Sir: * 
 
 After having been absent for four weeks, I find your valued favor 
 of the 20th ult, upon my return. Kindly excuse the delay in an- 
 swering. 
 
 As you may infer from the fact that I am the Chairman of an 
 Employers' Association, I am heartily in favor of accident compensa- 
 tion insurance, and particularly of the German system in its present 
 form. Without any fear of contradiction, I may safely claim it 
 has operated in an exceptionally satisfactory manner, both from a 
 business and a humane point of view. Indeed, I could not conceive 
 of anything better adapted to meet the requirements. I am quite in 
 favor of leaving the larger part of the burden of expense with the em- 
 ployers. My opinion, which, by the way, is shared by an overwhelm- 
 ing majority of the German employers, is that it would be anything 
 but wise to revive the conditions which existed before our present 
 system was adopted — conditions which had become practically un- 
 bearable owing to the inadequacy of private insurance companies and 
 the legal battles constantly under way. General compulsory insurance 
 is necessary to prevent discrimination and consequent unrest and dis- 
 satisfaction. It also strengthens the employers' feeling of solidarity. 
 
 So far as I am able to judge, the trade unions have not been 
 affected one way or the other by our accident insurance system; on 
 the other hand, the public charity organizations which formerly had 
 to care for the victims of industrial accidents are now much relieved 
 and can use their resources for other purposes. 
 
 The system is appreciated to a greater extent by the workingmen 
 in the small rural industrial districts than by those in the large cen- 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 287 
 
 ters, where agitation and demagogism are at work. The workingmen 
 pay their contribution to the Sick Fund quite willingly — more in view 
 of possible sickness, of course, than because of the comparatively 
 lesser chance of accidents. 
 
 Neither do the workingmen take exception to the amount of the workers' 
 cash contributions they have to make to the Sick Funds because the 
 benefits paid to them are proportionately high and their families are 
 benefited by contributory insurance. Simulation is diminished, too. 
 The workingmen's contribution, therefore, has a beneficial effect on. 
 the system generally. 
 
 ■A national system of accident insurance, in my opinion, should 
 include agricultural occupations, and I believe German agriculture 
 has been greatly benefited by being made a part of the general acci- 
 dent insurance system. 
 
 I trust that these few remarks will give you an idea of how our 
 
 accident insurance system is looked upon by German employers, and 
 
 I beg to remain, 
 
 Yours truly, 
 
 (Signed) Karl Marggraff. 
 
 Chairman Paper Manufacturers' Association. 
 
 Dresden, September 13, 1910. 
 My Dear Mr. Schwedtman: 
 
 Employers' Associations have now existed in Germany for 25 years, 
 during all of which time I have acted as chairman of the Saxonian 
 Woodworkers' Employers' Association, so that I am speaking from 
 practical experience in answering your questions as follows: 
 
 (1) Do you approve the German Accident Insurance System in its 
 present form? 
 
 In my opinion the system is exceedingly practical, especially be- 
 cause of the self-governing feature of the Employers' Associations, by 
 which all red tape is eliminated and injured workingmen enabled to ^^ j^^^ 
 secure an income or a pension as quickly as possible and without the Tape 
 necessity of complying with irksome formalities. 
 
288 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Only Minor 
 Points Sus- 
 ceptible of 
 Improvement 
 
 Socialists An- 
 tag'onistic to 
 System 
 
 Public Charity 
 Relieved 
 
 (2) What changes would you suggest? 
 
 "We approve of the fundamental principles of our accident insur- 
 ance system. In minor points, such as the accumulation of too large 
 a reserve fund, the miscarriage of justice by allowing pensions for 
 small. injuries, etc., we think the system is susceptible of improvements. 
 
 (3) Has the German system stood the test b^th from a humane 
 and a business point of view? 
 
 The German system has proven very satisfactory from both points 
 of view. 
 
 (4) If it were possible to abrogate all German accident compensa- 
 tion and insurance laws, would you be in favor of doing so? 
 
 By no means; for that would be downright folly. 
 
 (5) Do you consider general compulsory insurance absolutely 
 essential to the success of a national system? 
 
 Yes. 
 
 (6) Does the accident insurance system make the German work- 
 ingman better satisfied? 
 
 Gratitude for accident pensions is frequently met with in German 
 workingmen, but social democracy takes good care not to let this feel- 
 ing become general among the workingmen. 
 
 (7) Has the accident insurance system strengthened or weakened 
 workingmen's organizations (trade unions)? 
 
 Since the employers bear the greater burden of accident insur- 
 ance and therefore manage the affairs of their insurance associations to 
 suit themselves, our accident insurance system does not exert any in- 
 fluence on trade unions. 
 
 (8) What is the social and economic result of the German Acci- 
 dent Insurance and Accident Prevention System? (Sickness insur- 
 ance, old age and disability insurance do not enter into consideration 
 at this time.) 
 
 German workingmen injured by accidents no longer become a 
 burden on public charity, and the formerly frequent sight of cripples. 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 289 
 
 street musicians and beggars is no longer met with. Through the 
 
 accident prevention system all employers are obliged, under penalty 
 
 of heavy fines and even imprisonment, to install in their plants such 
 
 accident prevention appliances as may be prescribed by the Industrial Accident Pre- 
 vention De- 
 Board of Inspection and the Employers' Association. At regular inter- manded by 
 
 vals the Board of Directors of the Employers' Association inspects the 
 
 various plants within its jurisdiction and sees that they are equipped 
 
 with the necessary improvements and devices for preventing accidents. 
 
 (9) Is the workers' contribution to the accident insurance bene- 
 fits (through the compensation for the first thirteen weeks paid out of 
 the Sick Funds) of any importance? 
 
 While this contribution does not amount to very much, it is of 
 value because the Sick Fund authorities clear up the facts in the case 
 and make it apparent at once whether an accident exists or not. 
 
 (10) Has it diminished simulation? 
 
 Simulation has undoubtedly increased rather than diminished. 
 Many workingmen will stop short of nothing to procure a pension for 
 themselves through the accident insurance system. 
 
 (11) Are you in favor of increasing the workingmen's contribu- 
 tion or would you eliminate it altogether? 
 
 We employers are not in favor of increasing the workingmen's .^ 
 
 contribution, since this would entitle them to a voice in the manage- Workers' Con- 
 tribution not 
 ment of the Employers' Associations, and, therefore, enable socialistic Desirable 
 
 agents to penetrate into our very midst, thus opening the door to their 
 
 propaganda, as was shown in connection with the Sick Funds. 
 
 (12) Is it of any interest to the industrialist to have the farmer 
 covered in a national accident compensation system? 
 
 Yes; if for no other reason, justice demands it. 
 
 (13) Do many other employers share your opinion on the above 
 points? 
 
 I have every reason to believe that other employers hold the same 
 views as I do with regard to our accident insurance system. 
 
 The above in answer to your questions. My statements, as al- 
 ready suggested, are based on 25 years' practical experience. Of 
 
290 ACCIDENT PREVENTION AND RELIEF 
 
 course, there are many details which might be of interest and I shall 
 be pleased to give you any further information desired. 
 
 Yours truly, 
 
 (Signed) Ernst Grumbt, 
 
 Chairman Saxonian Woodworkers' Employers' Association. 
 
 Ranks Among 
 Greatest 
 Achievements 
 of Nineteenth 
 Century 
 
 A Great and 
 Noble Task 
 Accomplished 
 
 Berlin, September 21, 1910. 
 Mr. F. C. Schwedtman, 
 
 Hotel Bristol. 
 My Dear Sir: 
 
 / German legislation for the protection of workmen, in my opinion, 
 ranks among the greatest achievements of the nineteenth century. Its 
 chief value lies in the fact that all workmen and administrative offi- 
 cials who depend upon their labor, strength and health for a living 
 are, by law, protected against distress caused by sickness, accident, 
 disability or old age, and guaranteed the right to an income sufficient 
 to keep them out of the poor house. 
 
 This legislation has accomplished what in the well-known Imperial 
 message of November, 1881, was pronounced to be the first and noblest 
 task that could devolve upon any commonwealth. 
 
 That other countries have either already followed Germany's lead 
 or are preparing laws for the protection and compensation of working- 
 men, can, therefore, be readily understood and must prove a source 
 of gratification to our people. What has been accomplished by Ger- 
 many in the way of accident and disability insurance was again 
 demonstrated to the entire world, both orally and in writing, during 
 the 25th anniversary of these branches of our insurance system on 
 October 1, 1910. 
 
 As the president of the second largest employers' association in 
 Germany, the Storage Employers' Association, I principally had acci- 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 291 
 
 dent compensation insurance in view in making the above remarks, 
 but it may be claimed without exaggeration that the other two branches 
 of insurance have proven equally desirable. 
 
 Yours very truly, 
 
 Emil Jacob, 
 
 Chairman of the Storage Employers' Association, and Secretary of the 
 League of German Employers' Associations. 
 
 Cologne-Bayenthal, August 15, 1910. 
 My Dear Professor: 
 
 Your favor of the 8th Inst, only reached me to-day, as I have been 
 traveling about from place to place; I, therefore, trust you will excuse 
 the delay in answering. 
 
 You desire to have my opinion concerning the expediency of the 
 
 German Accident Insurance System. I could merely answer that I 
 
 consider this institution and the laws on which it is based Germany's 
 
 greatest achievement in the line of social reform in the last three dec- Germany's 
 
 Greatest 
 ades. I am not egotistical enough, however, to believe that such a Achievement 
 
 personal statement on my part would impress the industrialists of the j^jg^^^jeg 
 United States to any great extent or have any influence towards the 
 adoption of a similar system in the United States, and I, therefore, 
 prefer to call your attention to the "Report on the Proceedings of the 
 Extraordinary Session of the Employers' Associations, held on May 
 26, 1909," which may be considered an authoritative and impressive 
 document in proof of the fact that the duly authorized representatives 
 of all German Employers' Associations, comprising every trade and 
 industry in the empire, consider our accident insurance system so ex- 
 cellent and efficient an institution that only minor details of it seem 
 
Radical 
 Changes not 
 Desired 
 
 292 ACCIDENT PREVENTION AND RELIEF 
 
 susceptible of improvement to them and they are not in favor of fun- 
 damental changes such as the government, in its new bill relating to 
 Imperial Insurance Regulation, is aiming at. Resolutions to this effect 
 were passed unanimously by the associations represented and there was 
 not a single dissenting voice on the subject, all of which speaks vol- 
 umes for the accident insurance system in its preset form. 
 
 Yours very truly, 
 (Signed) Ernst Lechner. 
 
 Chairman of the Machine Builders' and Hardware Manufacturers' As- 
 sociation. 
 
 Berlin, September 16, 1910. 
 
 Territorial 
 Associations 
 Versus Ger- 
 man System 
 
 Mb. Ferdinand C. Schwedtman, 
 
 Hotel Bristol. 
 Dear Sir: 
 
 In reply to your inquiry of the 20th ult., and the 12th inst., which 
 greatly honors me, I beg to advise you that I entirely approve of the 
 German Accident Insurance System by which homogeneous lines of 
 industry are organized into Employers' Associations, which are granted 
 the right of self-government. Nevertheless, in adopting a new system 
 of accident insurance it should be carefully considered whether the 
 preference should not be given to Employers' Associations organized 
 territorially, by provinces, districts or the like, the same as in old age 
 and invalidity insurance, rather than to the German associations 
 which consist of employers in kindred lines of industry. My reason 
 for this suggestion is the fact that it is frequently difficult to tell to 
 just what association an employer belongs. Joint hazard tariffs could be 
 created to properly gauge the occupational hazards in the different 
 Industries represented by each Territorial Association. Whether, as a 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 293 
 
 matter of public policy, it would not be advisable to let the workmen Might Let 
 
 Workers 
 take part in the management of the Accident Insurance Associations, Help in 
 
 even though they contribute little to the cost of the system, is a ques- ?^^^^?1^a Jj^" 
 tion which merits careful attention. In exercising their right of rep- ci^tions 
 resentation in the Tribunals of Arbitration for workmen's insurance 
 and in the Imperial Insurance Office, the workmen have always con- 
 ducted themselves in an unobjectionable manner. 
 
 There cannot be the slightest doubt that the German Accident In- 
 surance System has proven most satisfactory both from a business and 
 a humane point of view. The employer is benefited by it as much as 
 the workman. It formerly was possible for injured workmen to bring 
 
 suit against individual employers for damages of simply unheard-of 
 
 Accident Com- 
 proportions — and that without incurring any expense, by simply prov- pensation in- 
 surance 
 ing themselves paupers — and the court decisions rendered frequently versus Em- 
 drove employers into brankruptcy. If the case was decided in the ^iJity^^ 
 employer's favor, on the other hand, the workman became an object 
 of public charity and had to go to the poorhouse. Now the workman 
 has a clearly established right to compensation, and damage suits 
 with all their attendant evils are, therefore, made impossible. I would 
 not be in favor of abolishing the German Accident Insurance System 
 by any means and believe in compulsory insurance as absolutely nec- 
 essary to its success. 
 
 It cannot be said that the German workmen have become better 
 satisfied on account of the rights granted to them by our accident in- 
 surance laws, but, on the contrary, trade unions have been strength- 
 ened by these laws. 
 
 The social consequences of the German Accident Insurance and 
 Accident Prevention System cannot fail to be noticed. Even if the 
 workingman has to assume one-third of the risk himself he is, as al- 
 ready mentioned, placed in a much better position financially in case 
 of accidents than formerly. As the accident prevention measures 
 initiated by the Employers' Associations contribute a great deal 
 towards reducing the number of accidents, the beneficial social influ- 
 
294 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 "Workers' 
 
 Contribution 
 
 Necessary- 
 
 Co-operation 
 of Agricul- 
 ture and 
 Industry 
 
 ence of the laws makes itself felt in more than one direction. The 
 workingmen's contribution to the accident insurance benefits (on ac- 
 count of the compensation being taken out of the Sick Funds during 
 the first thirteen weeks) is necessary, since otherwise the Employers' 
 Associations would have to deal with a large number of minor injuries 
 which do not as a rule impair the earning capacit^^ of their victims. 
 The Employers' Associations are at liberty, however, to look after such 
 cases at any time before the expiration of the thirteen weeks, if they 
 think they can accelerate the cure by so doin^. Simulation has not been 
 diminished by the laws passed for the protection of the workmen, but, 
 on the contrary, has been fostered and promoted by it. Financially 
 the workmen's contribution is not necessary, as the employers in both 
 agriculture and industry are very well able to carry the burden of 
 accident insurance alone, provided that burden is evenly distributed 
 the way this is done by the German System. For that reason it is of 
 great interest to the industrial employer to have agriculture made a 
 part of the national accident insurance system. 
 
 In conclusion I would say that the views expressed above are ap- 
 proved by the majority of the employers in my line, and beg to remain, 
 
 Yours, etc., 
 (Signed) J. Falkenhaueb, 
 Chairman of the Team Owners' Association, 
 
 Berlin, August 11, 1910. 
 
 Professor Dr. Alfred Manes: 
 Dear Sir: 
 
 It is a difficult matter to do justice, in a few words, to the import- 
 ance of our social legislation and the value of our accident insurance 
 system. 
 
 The financial aspect counts most. By glancing at the enormous 
 sums raised by employers in the last 25 years for the purpose of 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 295 
 
 compensating workmen injured by accidents, it is realized how much Distress ana 
 
 distress and misery the system has alleviated, if not entirely elimi- r:,!^^^J ^ ^ 
 
 •^ Eliminated 
 
 nated. While, in former times, the workman could obtain com- 
 pensation only by proving the employer's liability for the accident, 
 and was reduced to dire poverty long before his case had been passed 
 upon by the courts, he now has a fully established right to compensa- 
 tion, even if, as happens quite frequently, the accident was caused by 
 his own fault. The broad view that any harm befalling a work- 
 man through the very existence of a manufacturing establishment in 
 which he is employed must be offset, as far as possible, by some 
 equivalent in the shape of a fixed compensation, has resulted in an 
 achievement the value of which cannot be overestimated. 
 
 It is true that there is another side to the question which it is 
 not our intention to conceal. The prospect of being adequately com- 
 pensated for any injury he may suffer, diminishes the workman's 
 sense of responsibility. The man who receives an income without gome Draw- 
 working, especially after he has lived in idleness for a comparatively ^^ ^ 
 long period of time, loses his fondness for work as well as his effi- 
 ciency. Hence the wild scramble for pensions, with its disagreeable 
 attendant features, simulation and pension hysterics. This state of 
 affairs, it is true, is fostered by the long protracted procedure of appeal. 
 
 It would be difficult, however, to overestimate the influence which 
 accident compensation by insurance has exerted in bringing together 
 manufacturers in the same line of industry and in giving them a bet- 
 ter understanding of their common needs and interests. Unselfish de- Manufac- 
 votion and unbounded enthusiasm have been brought to the preparation 
 of measures for the prevention of accidents and each one has helped, 
 to the best of his ability, to solve the problem of how best to insure 
 the safety of life and limb in any given line of industry. The narrow- 
 minded exclusiveness which formerly kept manufacturers in the same 
 line of industry away from each other has ceased; one has become 
 the other's teacher, and I have no doubt that the growth of our indus- 
 tries in the last two decades is due in no small measure to the work 
 of our Employers' Associations. 
 
Employers 
 Welded To- 
 gether 
 
 New Govern- 
 ment Bill 
 Thought a 
 Menace to 
 Accident 
 Compensation 
 Insurance 
 
 Most 
 
 Beneficial 
 Legislative 
 Work Ever 
 Undertaken 
 
 296 ACCIDENT PREVENTION AND RELIEF 
 
 From a political point of view, too, our Employers' Associations 
 have undoubtedly done a great deal of good. The North and the South, 
 the East and the West have been brought into contact with each other. 
 Local prejudices have disappeared, and a feeling of solidarity, a desire 
 to co-operate towards a common goal, have sprung up in their stead and 
 borne many a ripe fruit. This also accounts for thf unanimous stand 
 taken by German employers against the insurance reform propositions 
 recently advanced by the Imperial government. How much of these 
 propositions will become law cannot be foreseen at this time. At any 
 rate, the tendency in the government bill to restrict the self-govern- 
 ment of the Employers' Associations and to increase the workmen's 
 sphere of influence must be pronounced as exceedingly regrettable. 
 German industrialists are thoroughly in sympathy with the idea of 
 extending the benefits of accident insurance to the largest number of 
 workmen possible, and they will also hail with delight any measure 
 which will shorten the proceedings for fixing the pensions or allow- 
 ances and the procedure of appeal. The attempt, on the other hand, 
 to create a so-called joint substructure (insurance offices) for all 
 branches of governmental insurance, cannot be fought vigorously 
 enough, since it would ultimately lead to a restriction of the work of 
 the Employers' Associations which has proven so beneficial in the 
 past. Just apprehension is felt that such measures will have the 
 effect of deterring the oflScers of the Employers' Associations, whose un- 
 selfish devotion and enthusiasm have contributed more than anything 
 else to the success of our social legislation, from taking any further 
 part in this work. 
 
 I desire to sum up my views by stating that in my opinion the 
 German Accident Compensation Insurance System has benefited the 
 nation politically, economically and socially to a greater extent than 
 any other legislative work ever undertaken. 
 
 (Signed) G. Kraemek, 
 Chairman of the Employers' Association for the Chemical Industry. 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 297 
 
 Bromberg, September 17, 1910. 
 
 Mb. Ferd. C. Schwedtman, 
 Dear Sir: 
 
 In reply to your questions of August 20th, I wish to make the fol- 
 lowing brief statement: 
 
 The German Accident Insurance System, in my opinion, is with- System 
 
 Without a 
 out a flaw, and may well serve as a model for other countries to copy. Flaw 
 
 The injured party is vouchsafed the right to compensation; he does 
 not have to beg for it. The burdens imposed on the employers are 
 quite heavy, it is true, but having been borne for so many years, have 
 ceased to be felt, and, on the other hand, are offset by the fact that 
 individual employers are no longer liable for accidents. I am very 
 much in favor of affording the workmen every possible legal protec- 
 tion against the consequences of sickness and accidents, as called for 
 by the mandates of common humanity. This necessitates compulsory 
 insurance, legally regulated. 
 
 To abrogate our social legislation is something no one would con- 
 template for a single moment. 
 
 The workers are better satisfied than ever before. The workmen's ^lorkers 
 
 Better 
 societies or trade unions have nothing to do with our social legislation, satisfied 
 
 The workmen's contribution to the Sick Funds, which is now two- 
 thirds and is to become one-half, is substantial and presumably some- 
 what conducive to diminishing simulation. In an accident insurance sys- 
 tem eliminating the sick funds, a small contribution of the workmen, 
 possibly 25 per cent, might commend itself. The employer of agri- 
 cultural-labor should be made a part of the accident insurance system. 
 
 Yours respectfully, 
 (Signed) Franz Bengsch. 
 Chairman East German Inland Navigation Employers' Association. 
 
298 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Stettin, August 23, 1910. 
 
 Has Stood 
 the Test 
 
 Better Ele- 
 ment Among' 
 "Workers Ap- 
 preciate 
 System 
 
 Simulation 
 Reduced by 
 Waiting 
 Time 
 
 Mb. Ferd. C. Schwedtman, 
 
 Hotel Bristol, Berlin. 
 
 Dear Sir: • 
 
 In reply to the questions asked of me in your favor of the 20th 
 Inst, with reference to German Accident Insurance, I beg to say the 
 following: 
 
 Questions 1, 2 and 3 can be answered by stating that the German 
 Accident Insurance System has now operated in an entirely satis- 
 factory manner for a period of 25 years. Such changes as have 
 proven desirable will be effected by the new Imperial insurance regula- 
 tions; 
 
 (4) Even if it were possible to abrogate all German accident laws 
 we would not be in favor of such action. I would not know what bet- 
 ter to put in their place. 
 
 (5) Compulsory insurance is necessary for the successful opera- 
 tion of the system. 
 
 (6) The accident insurance system gives the German workman a 
 greater feeling of security with regard to his economic existence. It 
 is only the better element among the workmen, however, that is 
 satisfied and appreciates the benefits the system affords them. 
 
 (7) The accident insurance law presumably did not appreciably 
 influence the workmen's organizations. 
 
 (8) The social effects of accident insurance on the German work- 
 men have been extremely beneficial. Injured workmen no longer be- 
 come a burden on the communities or to the poorhouses. 
 
 (9) The so-called waiting time (13 weeks) is absolutely neces- 
 sary, especially with regard to minor injuries. It undoubtedly dimin- 
 ishes simulation. Slight injuries which, as a rule only carry a tem- 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 299 
 
 porary compensation with them, are on a par with cases of slight sick- Temporary 
 
 Compensa- 
 ness. It should be rendered possible to satisfy the claims to compen- tion for 
 
 sation growing out of such injuries by granting a temporary allow- injuries 
 ance for a certain period of time, so that the injured party may adapt 
 himself to his condition. 
 
 It is exactly the small pensions paid for the loss of minor parts 
 which induce the workmen to exaggerate the consequences of acci- 
 dents and to practice simulation, 
 
 (10) A large or direct contribution of the workmen to the cost 
 of accident insurance would not be advisable. 
 
 (11) Agricultural workers should also be subject to compulsory 
 insurance, were it only because of the constant changes from agri- 
 cultural to industrial employment and vice versa. 
 
 (12) The above views are presumably shared by the majority of 
 German employers. 
 
 Yours respectfully, 
 
 (Signed) W. Jahn. 
 Chairman of the Board of Directors of the Employers' Association 
 for the Brick Industry. 
 
 Stuttgart, September 1, 1910. 
 
 Mr. F. C. Schwedtman, 
 
 Dear Sir: 
 
 Answering your favor of the 20th ult., which reached me on the System's 
 
 Worth 
 28th, I take great pleasure in complying with your request, as it is proven 
 
 well that an accident insurance system which has so signally proven 
 
 its worth, should be copied by other nations. 
 
 The enclosed statement which I sent to Professor Manes of Berlin, 
 under the date of the 16th ult., covers the subject in a general way, 
 and I shall, therefore, confine myself to answering your various ques- 
 tions, as follows: 
 
 (1) Do you like the German Accident Insurance System in its 
 present form? 
 
300 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 A Question 
 of Terms 
 
 "Booze" Pen- 
 sions Un- 
 desirable 
 
 System Pro- 
 tects Em- 
 ploye of 
 Large and 
 Small Con- 
 cern Alike 
 
 Class Hatred 
 Done Away 
 With 
 
 I approve of it in all its essential points. 
 
 (2) What changes would you suggest? 
 
 The term "Renten" (pensions) is a misnomer and should be 
 eliminated. It gives injured workmen the impression that they will 
 get something all their lives, whereas merely a temporary allowance 
 extending over a limited period of time — a few mojj^ths or, at most, a 
 few years — may be involved. Another thing which should be abolished 
 is the so-called "bagatelle" or "booze" pension for slight physical in- 
 juries, such as the loss of a few finger joints, weak arms or legs, 
 minor amputations, etc., impairing a man's earning capacity less 
 than 20 per cent. A real permanent economic damage is not 
 caused by such injuries and the allowance, if any, should be stopped 
 after a few years' time. This is doubly necessary and advisable, as 
 otherwise dissatisfaction is spread and a premium put on carelessness, 
 which, in the majority of cases, is the cause of such accidents. 
 
 Generally speaking, the German system has proven highly satis- 
 factory both from a humane and a business point of view. There is 
 just one feature connected with it which can be justly objected to, 
 and that is the unnecessary accumulation of enormous reserve funds 
 as required by the law. 
 
 I would be anything but in favor of abrogating the German acci- 
 dent insurance laws. Compulsory insurance is absolutely necessary 
 as it protects not only the man who is working for a large and pros- 
 perous concern, but also the employe of factories operated on a limit- 
 ed amount of capital, who in times gone by had to go to the poor- 
 house if injured by an accident. 
 
 It can hardly be asserted that accident insurance has made Ger- 
 man workingmen better satisfied; the small minority who have been 
 injured by accidents and enjoy the benefits of the system, of course, 
 appreciate its advantages. The great mass of the German working- 
 men, at best, are gratified at the thought that their fellow-workers 
 who have been injured by accidents, but not killed, are taken good 
 care of and that the families of the others do not have to suffer want. 
 The bitter feelings and downright hatred which formerly existed 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 301 
 
 between employer and employe and were fanned by suits for dam- Trade Unions 
 
 ages, have disappeared entirely, and this alone must be considered a c,^ *t 
 
 Strengtnenea 
 
 splendid achievement of the German Accident Insurance System. The 
 German Accident Compensation Insurance System has not strength- 
 ened trade unions in any way, as the workingmen do not take any 
 active part in the operation of the system, except by acting as co- 
 adjutators in the Tribunals of Arbitration and the Imperial Insurance 
 Office. The Employers' Associations govern themselves under the 
 supervision of the Imperial Insurance Office and resent any attempt on 
 the part of the workingmen or the authorities to interfere in the 
 management of their affairs. A striking example of this attitude is 
 found in the unanimity of opinion with which both industrial and 
 
 agricultural employers are opposing the new Imperial Insurance Regu- Employers' 
 
 Associations 
 lations. Neither is it so much the great mass of the workingmen Do Not Want 
 
 Interference 
 which desires to break down the self-governing barrier of the Em- 
 ployers' Associations, but only the labor leaders who do not belong to 
 the working class, and are actuated by selfish motives in their efforts 
 to take a part in the management of the Employers' Associations. 
 Their co-operation, unnecessary and uncalled for as it is, may be 
 readily dispensed with without working any harm to the workingmen 
 themselves. 
 
 The social consequences of the German Accident Insurance Sys- German 
 
 Workers 
 tern are of the utmost importance. In the first place, there is no longer Given a Feel- 
 
 i Ti fir of ^opur— 
 
 any danger of a seriously injured workingman becoming absolutely jt ^nd of 
 
 destitute and having to eat the degrading bread of the poor-house as Confidence in 
 
 Their Em- 
 a disabled soldier of trade or industry. Confidence in his employer ployer 
 
 and in the industry for which he works is awakened and strengthened 
 
 in the workingman, who knows that everything humanly possible is 
 
 being done for his protection and personal welfare. His is the mental 
 
 attitude of the soldier who knows that he is fighting under a capable 
 
 leader and who stands ready to go through fire and water if necessary. 
 
 It is a very important feature of the German Accident Insurance 
 
 System that the compensation during the first thirteen weeks is taken 
 
 out of the Sick Fund. In Germany all accidents, even those caused by 
 
302 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Lawsuits 
 
 Made 
 
 Impossible 
 
 Workers' 
 
 Contribution 
 
 Offset 
 
 carelessness on the part of the workingmen, give the latter a right 
 to compensation. If this were not the case, there would be no end of 
 lawsuits to determine and fix the responsibility for the accident. In 
 creating the German Accident Insurance System it was expressly pro- 
 vided that all accidents (with the single exception of those caused in- 
 tentionally) were to be compensated for out of the Sick Funds during 
 the first thirteen weeks. This provision was not a haphazard clause^ 
 but a historically well conceived and fundamental part of the German 
 system, without which accident compensation would never have become 
 an accomplished fact. The charge constantly reiterated by the critics 
 of the system that the workingmen share the cost of the insurance 
 by contributing to the Sick Fund from which the compensation is 
 taken during the first thirteen weeks after the accident, is in reality 
 without a foundation; for this contribution is more than offset by the 
 fact that all accidents, even those caused by the workingman's own 
 carelessness, for which the employers could not reasonably be ex- 
 pected to pay damages otherwise, are compensated. Indeed, financially 
 the employers would be better off if they had to pay the entire cost of 
 the insurance but did not have to pay for accidents due to the work- 
 ingmen's own fault. For practical reasons, however, and principally 
 with the view of avoiding lawsuits and unpleasant controversies be- 
 tween employers and employes which would have continued to arise 
 from the question as to the responsibility for the accident, it was 
 wisely decided to make the law apply to practically all accidents. 
 Simulation presumably is not affected by the Sick Fund contribution, as 
 those who want to simulate will do so anyway whether the money 
 they get comes out of the Sick Fund or the Accident Fund. 
 
 If employers desire to keep the self-governing feature of their 
 associations intact, they are not justified in letting the workingmen 
 contribute to their funds in any way except as is done at present. 
 
 It is economically desirable for the industrial employer to have 
 agriculture form a part of a national accident insurance system. The 
 largest share of the products of industry is consumed by the rural 
 population whose purchasing power is preserved and strengthened by 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 303 
 
 compensating the agricultural workers for injuries caused by 
 
 accidents. 
 
 A large number of other employers share my opinion on the above 
 
 subject. 
 
 I am indebted for your kind offer to furnish me any information Familiar with 
 
 American 
 I might require concerning workingmen's conditions in America; you Accident 
 
 will note from pages 2, 5 and 6 of the enclosed "Guide Book for the l"^"''^"^® 
 
 Prevention of Accidents" that I am already slightly familiar with the 
 
 subject of accident insurance in the United States. 
 
 Yours respectfully, 
 
 (Signed) Arthur Faber, 
 
 Chairman of the German Southwestern Woodworkers' Employers' 
 
 Association. 
 
 Berlix, August 30, 1910. 
 
 Mr. F. C. Schwedtmax, 
 
 Dear Sir: 
 
 Replying to your favor of the 20th inst., I beg to answer your 
 various questions as follows: 
 
 (1) Do you like the German Accident Insurance System in its 
 present form? 
 
 The German manufacturers have adapted themselves to the pres- 
 ent form of accident insurance and are well satisfied with it, so much 
 so that they would not want to be without it. 
 
 (2) What changes would you suggest? 
 
 German 
 
 I cannot suggest any radical changes in the features of the Manufactur- 
 ers Well 
 system. Satisfied 
 
 (3) Has the German system proven satisfactory both from a busi- 
 ness and a humane point of view? 
 
 Yes. The private insurance companies hardly ever paid com- 
 pensation unless a lawsuit establishing their liability was instituted. 
 
304 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Bitterness of 
 
 Feeling 
 
 Eliminated 
 
 Justice 
 Established 
 
 Old Employ- 
 ers' Liability 
 Laws a Mis- 
 take 
 
 Workers Feel 
 Secure in 
 Their Rights 
 
 This is now a thing of the past, as is also the bitterness of feeling 
 which used to take possession of workmen who were not compensated 
 for their injuries. The people now know what they are entitled to 
 and what they will get, and they also know that they will get it from 
 an organization which will pass judgment without bias or prejudice. 
 The Tribunals of Arbitration and the Imperial Insurance Office, to 
 which they may appeal, are a guarantee to them that they will get 
 justice in all cases. 
 
 (4) If it were possible to cancel all German compensation laws, 
 would you advise such a proceeding? 
 
 Under no circumstances would I advise making the least attempt 
 at anything of this kind. To go back to the conditions of employers' 
 liability laws which formerly prevailed would be more than a mis- 
 fortune and full of social dangers. 
 
 (5) Is compulsory insurance absolutely necessary in your opinion 
 for the success of a national system? 
 
 Of course, what is fair to one is fair to another. The burdens 
 imposed by the law must fall on all manufacturers alike; to dis- 
 criminate would mean that one manufacturer will find it easier and 
 the other one harder to hold his own in competition. 
 
 (6) Is the German workingman better satisfied owing to the acci- 
 dent insurance system? 
 
 The workmen are never satisfied; they are always trying to get 
 more. That is human nature. At any rate, if they are dissatisfied 
 with the compensation given to them, their anger is no longer directed 
 against their employer but against those who have fixed the com- 
 pensation. On the whole, it has been my experience that since the 
 adoption of the accident insurance law the workman banks on his 
 right to compensation just the same as he does on any other right 
 given to him by the state. 
 
 (7) Did the accident insurance system strengthen or diminish 
 trade unions? 
 
 I do not believe that the system has affected trade unions one 
 way or the other. If the accident insurance law did not exist and if 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 305 
 
 the former method of dealing with the results of accidents were still 
 in vogue, the growth of trade unions would undoubtedly have been 
 greatly accelerated. 
 
 (8) What is the social result of the German Accident Compensa- 
 tion Insurance and Accident Prevention System? 
 
 My answer to this is already partly contained in my previous Like Having 
 remarks. The workman knows that he is protected (at least to a insured 
 certain extent) against the consequences of accidents, and, like the 
 man whose house is insured, he does not worry but sleeps calmly, with 
 the certainty that if he should meet with an accident his family will 
 not suffer want. 
 
 (9) Is the workman's contribution to the accident insurance bene- 
 fits (through the compensation taken out of the Sick Fund during the 
 first thirteen weeks) of much importance? 
 
 The Employers' Associations frequently begin to look after in- workers' 
 
 jured men even before the expiration of the first thirteen weeks if Contribution 
 
 Negligible 
 
 they think that in this way a cure will be more quickly effected than Quantity 
 otherwise. This alone proves that the workman's contribution is not 
 considered of prime importance by the employers. This contribution 
 during the first thirteen weeks does not amount to a great deal at 
 best, and is out of all proportion to the benefits as a whole. 
 
 (10) Has simulation been diminished? 
 
 By no means. Simulation will continue to exist as heretofore, j^q Remedy 
 no matter whether the workmen contribute to the cost of the insur- °^ ^™" *' 
 
 tion 
 
 ance or not. The man who simulates does not stop to ask himself 
 whether, by doing so, he hurts his fellow workers' interests or not. 
 All he cares about is to get all he can for himself, regardless of any- 
 body else. 
 
 (11) Would you advise increasing the workmen's contribution or 
 would you eliminate it altogether? 
 
 Neither I nor any of the other manufacturers I know attach prime 
 importance to the workmen's contribution. By letting the workmen 
 increase their contribution, you give them the right to have their say 
 in the management of the Employers' Association. The present sue- 
 
506 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Workers' 
 Voice in 
 Management 
 Undesirable 
 
 Agriculture 
 Should be a 
 Part of 
 System 
 
 cess of these associations is based upon their not having to deal 
 directly with the workmen. The latter are represented in the Court 
 of Arbitration and in the Tribunal of the Imperial Insurance Office, 
 and have no legal fees to pay, so that their rights are fully protected, 
 but, on the other hand, the Employers' Associations are absolutely 
 unhampered and, therefore, in a position to produce splendid results. 
 If the workmen had a voice in the management of the Employers' 
 Associations disputes and differences of opinion would never cease. 
 That is the reason why I attach little value to the workmen's con- 
 tribution. 
 
 (12) Is it of any interest to industrial employers to have agricul- 
 ture share in a national accident insurance system? 
 
 In Germany the interests of agriculture and industry, unfortun- 
 ately, are widely divergent and the course taken by the representa- 
 tives of agriculture gives us just cause for complaint. Obligations 
 similar to those imposed on the industrial interests of a country 
 should certainly be placed upon agriculture. The more uniformly such 
 a system operates, the greater is its success, 
 
 (13) Do other employers share your opinion on the above sub- 
 ject to any great extent? 
 
 In our association there is but one opinion concerning the above 
 questions. I can say, without fear of contradiction, that my fellow- 
 members will readily endorse the remarks made by me if you ask them 
 their opinion. 
 
 Yours truly. 
 
 (Signed) E. Blum, 
 
 Chairman of the Board of Directors of the Northeastern Iron and Steel 
 Employers' Association. 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 307 
 
 Frankfort-on-the-Main, September 7, 1910. 
 
 Mr. Ferdinand C. Schwedtman, 
 Dear Sir: 
 
 Having just returned from a several weeks' trip, I beg to reply- 
 as follows to the questions asked in your favor of the 20th ult. 
 
 The German Accident Insurance System hits the nail squarely on Hits the Nail 
 the head in its fundamental principles, which sentiment, I am con- fh" Head *^" 
 vinced, is shared by an overwhelming majority of the German em- 
 ployers who do not want any change beyond eliminating the clause com- 
 pelling the Employers' Associations to accumulate excessive reserve 
 funds. This clause which is contained in section 34 of the Industrial 
 Accident Insurance Law of June 30, 1900, was unanimously protested 
 against by the League of German Employers' Associations in its yearly 
 convention, and the present bill for the New Imperial Insurance Regu- 
 lations contemplates a substantial reduction of the reserve fund. 
 
 The question whether the German system has proven satisfactory 
 from a business as well as from a humane point of view can be un- 
 reservedly answered in the affirmative. From the humane stand- 
 point there cannot be any doubt that a system which insures work- 
 men against the consequences of industrial accidents is a necessity, 
 
 for accidents quite unexpectedly deprive the workman of his earning 
 
 Urg-ent Need 
 
 capacity and the family of its bread winner. Of all forms of insur- of Accident 
 
 Insurance 
 
 ance, this, from a humane point of view, is therefore the most urgent, 
 
 and the German Accident Insurance System ha.s solved the problem 
 in a thoroughly satisfactory manner. Withal, German accident insur- 
 ance legislation has also benefited German employers to an appreciable 
 extent. Before the accident insurance system was establshied 25 years 
 ago, the so-called Imperial Liability Law of 1871 compelled the em- 
 ployer to compensate workmen injured by accidents which occurred in 
 his establishment and for which he himself or his authorized officers 
 
308 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Private 
 
 Accident 
 
 Insurance 
 
 Expensive 
 
 and 
 
 Inefficient 
 
 Value of 
 
 Employers' 
 
 Associations 
 
 Uniform 
 
 Distribution 
 
 of Burden 
 
 Prevents 
 
 Interference 
 
 with 
 
 Competition 
 
 or superintendents were to blame. At that time the employer was 
 obliged, therefore, in order to protect himself against the claims for 
 liability arising from such accidents, to take out liability insurance 
 in private insurance companies, the premium on which was very high. 
 If a workman was injured and the insurance company called upon 
 for damages, it frequently became necessary to reso||t to legal measures 
 to compel the company to fulfill its obligations, and the injured party 
 was left without compensation of any kind for a long time. Now, all 
 this has been changed by our accident compensation insurance sys- 
 tem, which grants the workman the right to collect damages from the 
 Employers' Association in connection with all accidents, except those 
 caused intentionally. On the other hand, the workman is not en- 
 titled to obtain damages from his employer under any circumstances 
 except where the employer caused the accident intentionally. Of 
 course this system meant a considerable extra burden for the employ- 
 ers, who have to raise the entire cost of accident insurance themselves 
 except for the thirteen weeks following the accident; this burden, gen- 
 erally speaking, is borne cheerfully and willingly by the German em- 
 ployers in consideration of the great benefits which the system af- 
 fords to their workmen and of the necessity of such insurance from a 
 humane standpoint. The chief value of German accident insurance 
 legislation lies in the creation of so-called Employers' Associations 
 who have to bear the burden of accident insurance. These Associa- 
 tions are self-governed bodies and organized according to industries. 
 They have furnished the employers a motive to form large organiza- 
 tions which have proven valuable, not only from an economic point of 
 view, but also as a means of counterbalancing the trade unions. 
 
 To abolish the legal structure on which accident insurance rests 
 is not to be thought of. By far the great majority of the German em- 
 ployers would be emphatically opposed to such a course, and, so far as 
 I know, no one has ever made a suggestion to that end. Workmen's 
 insurance — this statement, too, I make without the slightest fear of 
 contradiction — is conceivable only as compulsory insurance, which dis- 
 tributes the burden uniformly among all employers and does not in- 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 309 
 
 terfere with competition. Whether accident insurance or any of the Dissatisfac- 
 tion Pre- 
 other forms of governmental insurance existing in Germany has made vented 
 
 -the workmen better satisfied is a subject concerning which opinion is 
 
 divided. In view of the beneficial workings of our insurance laws and 
 
 particularly of our accident insurance system with its high rates of 
 
 compensation, the assumption that greater satisfaction must have been 
 
 the result seems justified; at any rate it may be safely asserted that 
 
 if this workmen's insurance had not been adopted dissatisfaction would 
 
 have reached much greater proportions. 
 
 In like manner it may be claimed that the accident insurance Trade 
 laws, far from strengthening the workmen's organizations, have influence 
 neutralized their influences. Neutralized 
 
 The fact that our governmental accident insurance system has 
 conferred great benefits on the workmen has been duly em- 
 phasized, but it should also be pointed out that both the rates and the 
 period of compensation are much more liberal in connection with this compensation 
 
 T iihpi*fil 
 
 form of insurance than they are for invalidity or sick insurance. This 
 is not only justified by the fact, that, as above stated, industrial ac- 
 cidents result in a sudden unforeseen state of distress, but also because 
 the workman in many cases, in view of his claims to compensation 
 against the Employers' Association, is no longer able to collect from 
 his employer the damages to which he was formerly entitled by virtue 
 of the liability law if his employer or fellow-workers were to blame 
 for the accident. 
 
 The workmen's contribution to the compensation paid for the con- 
 sequences of accidents, based on the fact that the compensation is 
 taken out of the Sick Funds during the first thirteen weeks after the 
 accident, is of the utmost importance. At any rate, the great majority 
 of the German employers are averse to any change in the present 
 system, even though a few have advocated that the Employers' As- Averse to 
 sociations pay an ciaims lor damages right from the start, thus throw- gygtem 
 ing the entire burden of this insurance on the employers' shoulders, as 
 the Employers' Associations are financed entirely by their members. 
 
310 ACCIDENT PREVENTION AND RELIEF 
 
 The simulation frequently to be observed on the part of workmen 
 injured b3' accidents is scarcely diminished by the practice of pay- 
 ing the compensation out of the Sick Funds during the first 13 weeks, 
 as the injured parties presumably are hardly conscious of the fact 
 that by contributing to the Sick Fund they also raise part of the cost 
 of accident insurance. Furthermore, simulation, as a rule, is only 
 met with after the treatment or cure is well under way. 
 
 The question whether the workman's contribution to the cost of 
 
 accident insurance should be increased or abolished entirely by letting 
 
 Workers' ^^® Employers' Associations take charge right after the accident oc- 
 
 Contribution j solely and simply a question of financial taxation, and the 
 
 Satisfactory "^ 
 
 great majority of the German employers would take the stand that no 
 change be made in the present system in this respect either. 
 
 That governmental accident compensation insurance is also ap- 
 plied to agricultural workers is of the utmost importance both to in- 
 dustrial and to agricultural employers. It is not only right and proper 
 that agricultural workers should share the benefits enjoyed by those 
 engaged in industrial occupations, but this is also in the interests of 
 the employers of farm help in that it checks the so-called land-flight 
 Land-Flight ^^^ counteracts the scarcity of labor in the country districts. Finally, 
 
 Checked by ^j^^ industrial employer is likewise benefited, since in many instances 
 Applying 
 
 System to agricultural and industrial plants are run in connection with each 
 Agriculture 
 
 other and the Industrial Employers' Associations would have to pay 
 
 compensation for many accidents which can now be charged to the 
 Agricultural Employers' Associations. 
 
 The above views are substantially those of an overwhelming ma- 
 jority of German employers. 
 
 Yours truly, 
 
 (Signed) F. Hexrich 
 Chairman of the Brewers' and Maltsters' Association. 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 311 
 
 Berlix, August 23, 1910. 
 
 Mb. Feedixand C. Schwedtman, 
 
 Vice-President of the National Association of Manufacturers, 
 Hotel Bristol. 
 Dear Sir: 
 
 I duly received your favor of the 20th inst. and beg to answer the 
 questions asked by you therein as follows: 
 
 (1) Do you like the German Accident Insurance System in its 
 present form? Yes, I like it very well indeed. 
 
 (2) What changes would you suggest? None. 
 
 (3) Has the German system proven satisfactory from a business 
 as well as from a humane point of view? It has proven satisfactory 
 from both standpoints. 
 
 (4) If all the German accident laws could be cancelled, would 
 you advise such a course? No, not under any circumstances. 
 
 (5) Is general insurance compulsion absolutely necessary in 
 your opinion to insure the success of a national system? Yes, com- 
 pulsory insurance is absolutely necessary. 
 
 (6) Is the German workman better satisfied in consequence of 
 
 Worker 
 accident insurance? Yes, decidedly, because he knows that he and his Knows He 
 
 family will be taken care of it he meets with an accident. 
 
 (7) Has the accident insurance system strengthened or weak 
 ened workmen's associations (trade unions) ? I am unable to form 
 an opinion on this point. 
 
 (8) What is the social consequence (among the workmen) of 
 the German Accident Insurance System? The social conditions of the 
 workmen have improved. 
 
 (9) Is the workman's contribution to the cost of accident insur- 
 ance (on account of the compensation being taken out of the Sick 
 Fund during the first 13 weeks) of great importance? Yes, because 
 
312 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Changes 
 Inadvisable 
 
 Recommends 
 System to 
 Other 
 Countries 
 
 the workman receives financial support immediately after the acci- 
 dent happens. 
 
 (10) Has simulation been decreased thereby? Yes, because the 
 Sick Fund is supervised conscientiously by the workers. 
 
 (11) Do you advise a larger contribution on the part of the 
 workmen or do you advise against the workmen'^ contribution en- 
 tirely? My advice is to leave things as they are. 
 
 (12) Is the farmer's share in a national accident insurance sys- 
 tem of interest to the industrial employer? Yes. 
 
 (13) Is your opinion on the above points shared by many other 
 employers? Yes. 
 
 I wish to also add that all civilized countries throughout the 
 world should endeavor to adopt accident compensation by insurance ac- 
 cording to the German model so that the workmen may obtain an un- 
 disputed right to the payment of compensation when they meet with 
 accidents in the course of their work. 
 
 Yours respectfully, 
 
 (Signed) Fraxz Pest, 
 Chairman of the North German Metal Trades' Employers' Association. 
 
 ScHWELM, September 14, 1910. 
 
 Mr. F. C. Schwedtman, 
 Dear Sir: 
 
 Employers 
 Want to 
 Continue 
 System 
 
 It was impossible for me to reply ere this to your favor of the 
 20th ult., and I now beg to answer your various questions as follows: 
 
 The German Accident Insurance System, based as it is on self- 
 governing Employers' Associations, has stood the test of time, and 
 there is no desire on the part of the employers to do away with 
 it, even if such a thing were possible. German employers have will- 
 ingly assumed the financial burden laid upon them by the system and 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 313 
 
 cheerfully perform the work it necessitates. Full justice is guaran- 
 teed to the workmen by the German Compensation Insurance System, 
 and the verdicts of the higher tribunals in cases that have been ap- 
 pealed prove the efficiency of the Employers' Associations and the fair- 
 ness of their decisions. If an entirely new accident insurance system 
 were planned, it is a question in my mind whether it would not be 
 best to establish a certain limit beyond which the obligation to com- 
 pensate would cease on the part of the employers. When the German 
 Accident Insurance System was adopted, employers generally were 
 under the impression that accidents causing minor injuries (such as 
 the loss of a finger-joint, stiff finger joints, slight amputations, etc.) -^^ -^eed. of 
 
 were not to result in the allowance of a pension. It was well known Compensat- 
 ing for Minor 
 
 as far back as 25 years ago, and our experience since that time has Accidents 
 confirmed it, that slight bodily injuries do not permanently impair 
 a workman's earning capacity, but cease to handicap him after a few 
 years' time when he has become used to them. The allowance of 
 small pensions (10, 15 and 20 per cent.) in such cases was chiefly 
 due to the manner in which the law was at first interpreted by the 
 Imperial Insurance Office, but of late years this tribunal has taken 
 the view that adaptation and familiarization play an important part 
 in relieving the consequences of minor injuries and furnish the basis 
 for eventually withdrawing or at least reducing the pension. If a 
 country, therefore, proceeds to pass laws creating an accident insur- 
 ance system, it should be carefully considered right at the start 
 whether it would not be well to exclude from its benefits any and all 
 accidents impairing the workmen's earning capacity less than possibly 
 20 per cent. 
 
 If accident insurance is to be regulated by law, compulsory insur- 
 ance of all persons employed commends itself as the best course compulsory 
 to adopt. In this connection I wish to refer to the proceedings of Recommended 
 the various International Workmen's Insurance Congresses, particu- 
 larly the one held in Rome. 
 
 It would be diflicult to answer the question whether accident com- 
 pensation has resulted in making German workmen better satisfied; it 
 
314 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Workers' 
 Satisfaction 
 Repressed by 
 Social Demo- 
 cratic Party 
 
 Trade Unions 
 Only Slightly 
 Affected 
 
 No More 
 
 Damage 
 
 Suits 
 
 is human nature to be dissatisfied with existing conditions, 
 and the agitators among the workmen, particularly those belonging to 
 the Social Democratic Party, see to it that whatever satisfaction is 
 felt by the workmen does not appear on the surface but is repressed 
 as much as possible. It is a fact, nevertheless, that workmen and their 
 families who have received the benefits of accident insurance, have ex- 
 pressed their appreciation and gratitude in no uncertain terms. If 
 the workmen were to vote on the question whether the system was 
 to be continued or not, an overwhelming majority would undoubtedly 
 vote in the affirmative. 
 
 Accident insurance has not strengthened trade unions to any 
 extent worth mentioning. Its only effect has been to give them a new 
 subject for discussion at their meetings and to lead to the creation 
 of secretaryships for the special purpose of protecting the work- 
 men's interests in connection with the accident insurance system. 
 Financially, too, the trade unions have been benefited somewhat by 
 virtue of the fact that the accident insurance system gives their in- 
 jured members a legal claim to compensation. 
 
 The chief value of the German Accident Insurance System, so far 
 as the workmen are concerned, lies in the fact that it grants to them 
 a clearly defined right to compensation if they meet with an accident, 
 thus protecting them against the possibility of becoming paupers. Again, 
 the bitterness of feeling which resulted from the lawsuits instituted 
 to determine whether the employer or the workman was responsible 
 for the accident, has become a thing of the past. And even if the suit 
 was decided in the workman's favor, the chances were that he would 
 not be able to collect his claims on account of limited resources on the 
 employer's part — quite aside from the fact that during the trial he 
 depended on outside help to make both ends meet. 
 
 The science of preventing accidents has been placed on a practical 
 basis by the intelligent co-operation of employers and employes, and 
 there has been a marked decrease in the number of accidents and 
 the extent to which workmen have been injured by them. 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 315 
 
 The workmen's contribution to accident insurance, based as it is 
 on the practice of paying the compensation out of the Sick Funds 
 during the first thirteen weeks succeeding the accident, is of little im- 
 portance financially but affects the practical workings of the system. Workmen's 
 
 Contribution 
 As is well known, the consequences of the majority of accidents cease Simplifies 
 
 T3r*o pt i PI 1 
 
 during the first thirteen weeks, and the Employers' Associations are, workings of 
 therefore, not burdened with a lot of work which, in the nature of ^^ ^"^ 
 things, would be out of all proportion to the actual amount of good 
 done. Inasmuch as the workmen are represented to the same extent 
 as the employers in the Courts of Arbitration and in the Tribunals of 
 Appeal and also co-operate in an equal measure in preparing accident 
 prevention devices, they should naturally also contribute something to 
 the cost of accident insurance. Above everything else, as pointed 
 out before, the fact should be taken into account that after a pension, 
 no matter how small, has once been granted it is very difficult, if 
 not impossible to stop or withdraw it, even if the conditions which led 
 to its being allowed have ceased to exist. On the other hand, when he 
 is being paid out of the Sick Fund, the workman knows that a tem- 
 porary allowance is involved, whereas, if the Employers' Association 
 were to pay him a compensation during the first thirteen weeks he 
 would struggle tooth and nail against its being withdrawn after a 
 while. The point I desire to bring out is that the important thing is 
 not so much the amount contributed to accident insurance by the 
 workmen but the way in which this contribution simplifies and facili- 
 tates the practical workings of the system. 
 
 It is of little consequence to industrial employers whether agri- 
 culture is made a part of the accident insurance system or not, but 
 agriculture itself is vitally interested in the question, since the num- 
 ber of agricultural workers deserting the farm in favor of the factory 
 will continue to increase as long as the benefits of accident compen- 
 sation are not enjoyed by those engaged in agricultural occupations. 
 
 The above brief remarks, of course, do not attempt to deal ex- 
 haustively with the subject, but I believe that my views are shared by 
 
316 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 a majority of the employers in my own line of industry and by many 
 other manufacturers as well. 
 
 Yours truly, 
 
 (Signed) August Sternenberg. 
 
 Chairman of the Linen Manufacturers' Association. 
 
 Leipsic, September 8, 1910. 
 
 Individual 
 Employers 
 Relieved 
 of Responsi- 
 bility 
 
 Me. Ferdinand C. Schwedtman, 
 
 Berlin. 
 My dear Sir: 
 
 Your favor of August 20th was not answered ere this as the under- 
 signed chairman to whom your letter was addressed personally only 
 returned from a vacation a few days ago. 
 
 It is hoped that the replies to your questions will nevertheless 
 reach you in time to be of some service to you. 
 
 We have nothing against the German Industrial Accident Com- 
 pensation Insurance law in its present form and could hardly sug- 
 gest any changes, as the law has proven very satisfactory both from 
 a business and a humane point of view. 
 
 The continuance of the German Social laws, i. e. of sick insur- 
 ance, accident insurance, old age and disability insurance, is desir- 
 able under all circumstances, as it gives the individual employer the 
 assurance that his workers are protected in every way. It is a 
 relief for him to know that an efficient and well financed organization 
 will look after his sick and injured workmen and that he cannot be 
 sued for damages or compensation. To accomplish this end, compul- 
 sory insurance is a necessary prerequisite. 
 
 That accident compensation insurance has made the German 
 workman better satisfied cannot be asserted. Among the German 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 317 
 
 workers are many Social Democrats. One of the principal doctrines 
 of the Social Democratic Party is the class struggle, which causes 
 hatred and envy of the possessing class by the so-called property- 
 less or working class. On that account the workers will never be System 
 
 Fatal to 
 satisfied with the benefits they get, as that would be fatal to the Socialistic 
 
 Doctrines 
 progress and growth of the Social Democratic movement, and, there- 
 fore, against the interests of organized labor and its leaders, the 
 latter being especially bent upon making the continuation of the 
 class struggle their one object in life. 
 
 The German Accident Compensation Insurance law has not pre- 
 vented the organization of trade unions. On the contrary many 
 workmen's societies have been started, possibly not as the result of 
 accident compensation insurance, but for other economic reasons. 
 
 The social effects of the German Accident Compensation Insur- 
 ance and Accident Prevention System are quite peculiar. Workmen 
 frequently exaggerate the results of small injuries in order to obtain 
 accident pensions, and in this fight for pensions hysterics and simu- 
 lation unfortunately have come to play an important part. The regu- 
 lations so far adopted for the prevention of accidents are rigidly en- Accident Pre- 
 vention Mea- 
 forced, and statistics show that they have been fruitful of excellent sures strictly 
 
 results, although the workmen often dislike using the protective de- 
 vices prescribed and at times become more than indifferent towards 
 the operating hazards. 
 
 The workmen's contribution is not without importance and comes 
 to about 10 per cent, of the total pensions paid. We would like to see 
 the contribution kept where it is, as it seems proper that the workers 
 should contribute something to the burden. The workmen's contribu- 
 tion, however, does not affect simulation one way or the other. 
 
 The conditions existing in Germany create a community of in- community 
 terests between agriculture and industry, on which account agricul- between Ag- 
 tural as well as industrial workers are subject to compulsory insur- P^uiture an 
 ance. These views are shared by the majority of the employers; for 
 it can hardly be questioned that nearly all employers take the hu- 
 
318 ACCIDENT PREVENTION AND RELIEF 
 
 mane standpoint that the welfare of their workmen demands an ac- 
 cident compensation insurance system. 
 
 As you are undoubtedly aware, there is now before the Reichstag 
 a bill comprising new Imperial Insurance Regulations which carry 
 with them several advantages for the workers and also some disad- 
 vantages for the employer, especially for the Empftyers' Associations, 
 
 Hopes New whose autonomy it is aimed to curtail by establishing government in- 
 
 Bill Will Not 
 
 Become Law surance offices to which the fixing of the compensation is to be trans- 
 ferred. It is hoped that this bill will not become law, all the more 
 so as the establishment of the insurance offices planned would pre- 
 sumably cause a total expenditure of at least 30,000,000 marks, ($7,500,- 
 000) not even the smallest fraction of which would raise the insur- 
 ance benefits or bring about any material promotion of insurance in 
 other directions. 
 
 Yours respectfully, 
 
 (Signed) Ferdinand Kunad, 
 Chairman Saxe-Thuringian Iron & Steel Employers' Association. 
 
 AuGSBUEG, September 1, 1910. 
 
 Mb. Febdinand C. Schwedtman, 
 
 Berlin, Germany. 
 My Dear iSir: 
 
 In compliance with your request of August 20th we beg to state 
 the following: 
 
 The organization of Employers' Associations as prescribed by the 
 German Accident Compensation Insurance law we consider an un- 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 319 
 
 qualified success. We could not suggest any change. Other forms of in- 
 surance, such as the Austrian Territorial system for instance, may 
 offer certain advantages, but after all is said and done, we think 
 the German system is by far the best. By separating the lines of Indus- German Sys- 
 try, it is rendered possible to gain a better understanding of the in- J^^ ^^^^ ^^ 
 jured party's economic and working conditions, to enforce the regula- 
 tions for the prevention of accidents more effectively and to distribute 
 the cost of the system more uniformly and fairly. These three things 
 are the very basis of a successful Accident Compensation Insurance 
 System. The German employers pay the greater part of the cost of 
 the system out of their own pockets and contribute liberally to the 
 workers' sick funds. No bureaucratic institution is entrusted with on a Business 
 the administration of the German Accident Compensation Insurance ^^^is 
 Law, but the very factors which control the economic life of Germany 
 are also responsible for the operation of our accident compensation 
 insurance system. The Government's functions are merely those of 
 supervision and examination. We would not be in favor of changing 
 the system. 
 
 We also consider that compulsory insurance is best. We are 
 firmly convinced that the countries in which the system of voluntary 
 or optional insurance still prevails will, in the course of time, change 
 to the German system. Compulsory insurance at once becomes gen- Compulsory 
 
 Versus 
 
 eral, as is shown by the evolution of Accident Compensation Insurance voluntary 
 
 T n m 1 v^T} o 6. 
 
 in Germany. If you exclude agriculture you would intensify our "land- 
 flight," by furnishing the agricultural workers an additional induce- 
 ment to become factory employes. 
 
 Generally speaking, it must be admitted that the German workers 
 are well satisfied with our Accident Compensation Insurance System; 
 it is difficult to conceive what would be the condition of German work- 
 men as a whole without such insurance. Certain it is that our work- 
 men's insurance system has substantially raised the German workers' 
 physical and mental level. The drawbacks of the system— pension 
 mania and simulation— cannot be denied, but according to our experi- 
 ence, which extends over a good many years, these are not so seri- 
 
320 ACCIDENT PREVENTION AND RELIEF 
 
 ous as is claimed in some quarters and are not confined to compul- 
 sory insurance but also exist in connection with optional insurance. 
 We are unable to say whether workmen's insurance has had a retard- 
 ing or stimulating effect on the trades' union movement. We hope 
 the above statements will be satisfactory and beg to remain 
 
 Yours very truly, • 
 
 (Signed) Richard Schurer, 
 
 Chairman South German Textile Employers' Association. 
 
 Munchex-Gladbach, September 5, 1910. 
 
 System Has 
 Not Been 
 Surpassed 
 
 Designed to 
 Protect and 
 Benefit 
 Workmen 
 
 Dear Sir: 
 
 In reply to your favor of August 20th I beg to say that the fol- 
 lowing answers to your questions are based on my personal experience 
 with our insurance laws: 
 
 The German Accident Compensation Insurance System has not 
 been surpassed by that of any other country so far as I know, but 
 has become a model for others to copy. The question what changes 
 might be suggested cannot be answered in a general way. The changes 
 proposed by the government, which occupy the Reichstag at the present 
 time, are being bitterly fought by the German Employers' Asso- 
 ciations. Speaking from my own experience, I believe that the German 
 system has stood the test both from a business and a humane point of 
 view. No one who is familiar with the German Accident Compensa- 
 tion Insurance Laws and has come into actual touch with them would 
 think of abolishing them. I consider compulsory insurance absolutely 
 necessary to make a national system thoroughly successful. If the 
 German workman has not become better satisfied since the adoption of 
 the accident compensation insurance system, it cannot be the fault 
 of the system which is primarily designed to protect and benefit the 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 321 
 
 workers. Trade unions have steadily increased since the adoption 
 
 of the system, but whether our accident compensation insurance laws 
 
 or other conditions are responsible for this is difficult to say. - 
 
 The social result of the German Accident Compensation Insurance Material im- 
 
 and Accident Prevention System must necessarily be a substantial P^'^vement in 
 
 Workers' 
 improvement of their material condition. The workmen's contribu- Condition 
 
 tion through the sick fund during the 13 weeks' waiting time is very 
 
 desirable and practical; whether it reduces simulation is something I 
 
 would not like to say; it is not necessary, in my opinion, to increase 
 
 the workmen's contribution. So far as the industrial employers are 
 
 concerned, the application of our system to agriculture presumably 
 
 has not much interest. I am justified in assuming that the above views 
 
 are shared by many employers. 
 
 Yours respectfully, 
 
 (Signed) Gael Otto Langen, 
 
 Chairman of the Board of Directors of the Rhenisch-Westphalian 
 Textile Employers' Association. 
 
 STATEMENT OF ROBERT SCHMIDT, 
 SOCIAL-DEMOCRATIC MEMBER OF REICHSTAG 
 
 Berlin, August 20, 1910- 
 
 Accident compensation insurance as existing in Germany, comprises 
 
 workmen in industry, trade and agriculture with the exception of a few 
 
 occupations in which the operating danger is comparatively slight. 
 
 TV^ants All 
 This separation has led to many inconveniences, as the dividing line occupations 
 
 cannot always be clearly recognized. The workmen desire that this gyg^"^^ ^^ 
 separation be done away with and that all persons employed en- 
 joy the same protection with regard to operating hazards. By 
 
322 
 
 ACCIDENT PREVENTION AND BELIEF 
 
 Acknowledges 
 Humanitarian 
 Side of 
 System 
 
 Thinks 
 Austrian 
 System 
 Superior 
 
 Wants Com- 
 pensation 
 Raised 
 
 Including all occupations in the system, the general cost of acci- 
 dent insurance compensation would be appreciably reduced, while 
 all workers would enjoy the same rights in case of accidents. 
 
 The German Accident Compensation Insurance Laws go far be- 
 yond the principle of the civil law in that the claims for compensa- 
 tion are not made dependent on proving either the employer's or the 
 workman's responsibility for the accident. Every operating accident 
 is recognized as such in the sense of the accident compensation in- 
 surance laws. This fundamental principle gives the worker a right 
 to compensation even if he himself contributed to the accident through 
 carelessness or negligence. It must be acknowledged that humanitarian 
 considerations were the guiding factors in eliminating this question of 
 responsibility for the accident. 
 
 The German Accident Compensation Insurance Law creates com- 
 pulsory organizations according to lines of industry and makes these 
 the carriers of the insurance. Among the workers the opinion pre- 
 vails that this division according to lines of industry is clumsy in 
 operation and that the Austrian method based on territorial divisions 
 is simpler and affords many advantages. Disputes frequently arise 
 as to the Employers' Association to which a given occupation belongs. 
 Aside from this, it happens that in composite industries several Em- 
 ployers' Associations carry the insurance or that occupations are as- 
 signed to an Employers' Association to which they do not belong at 
 all. In its first bills relating to this subject, the German Government 
 did not contemplate any division but recommended the establishment of 
 a general insurance institution. The compensation paid to those in- 
 jured by accidents is two-thirds of the damage suffered and is based 
 upon the wages actually earned. Anything above 1500 marks (375 dol- 
 lars) per annum, however, is only figured at one-third, so that the com- 
 pensation does not even reach two-thirds of the actual damage in some 
 cases. It is only in case of complete helplessness on the part of the 
 injured party that the pension is increased to the full amount of the 
 annual wages earned, subject to the limitation just mentioned. If the 
 injuries caused by the accident prove fatal, the widow receives a pen- 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 323 
 
 sion amounting to 20 per cent of the annual wages earned by her hus- 
 band, and a similar amount for each child, which, however, may be re- 
 duced, making the maximum income 60 per cent of the annual wages 
 earned. If the deceased was the principal bread winner of his parents or 
 grandparents, these are entitled to a "Survivors' Pension" unless the 
 prior claims of the widow or children of the deceased have exhausted 
 the compensation possibilities. The amounts of the incomes or pen- 
 sions paid to parties injured by accidents are considered inadequate by 
 the workers. Full compensation for the damage caused by the oper- 
 ating accident is asked. 
 
 Workers have no voice whatever in the original fixing of the com- 
 pensation, which is left entirely to the Employers' Association, but they 
 do form part of the tribunals of arbitration, to which compensation j^^gg j^^^ 
 
 cases may be appealed free of charge. The intention to restrict this Desire 
 
 Workers' 
 
 procedure and particularly not to permit all cases to go to the Imperial Present 
 
 Rights of 
 
 Insurance Office, the highest and final court of appeal in compensa- Appeal Cur- 
 
 tion disputes, is bitterly opposed by our workmen. It is felt that the 
 decision of one tribunal in connection with these frequently very impor- 
 tant cases is not sufficient, but that there should be an opportunity for 
 another examination and verdict. 
 
 The shortcomings of accident compensation insurance as the 
 workers see them, have been intimated above. It is not necessary to 
 take up questions of a subordinate nature. 
 
 (Signed) Robert Schmidt, 
 Social Democratic Member of the Reichstag. 
 
324 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Beandenbubg, September 19, 1910. 
 
 Great Im- 
 provement 
 Over Em- 
 ployers' 
 Liability 
 
 Socialists 
 Responsible 
 for Dissatis- 
 faction 
 
 Practical 
 Value of 
 Workers' 
 Contribution 
 
 Mb. F. C. Schwedtman. 
 Dear Sir: 
 
 Your esteemed favor of the 20th ult. reached me with considerable 
 delay, as I have been absent from home for quite some time. I now 
 beg to say the following in answer to your questions concerning our ac- 
 cident insurance system: 
 
 The system, generally speaking, has proven very satisfactory for 
 25 years; neither does the new bill for the Imperial insurance regu- 
 lations carry with it any substantial changes in accident insurance as 
 existing to-day. Compulsory insurance is absolutely necessary to in- 
 sure the success of a national system. Our present accident insurance 
 law is a great improvement over the old employers' liability law and 
 protects the workmen in a far more substantial manner, a fact which is 
 universally acknowledged. 
 
 The employers have acquiesced in bearing the burden of the sys- 
 tem alone. The self-governing feature of the Employers' Associations 
 has stood the test. That the workmen are frequently dissatisfied with 
 the compensation allowed by the Employers' Associations and with 
 their methods generally, is something for which the Social-Democratic 
 agitators are responsible. The accident insurance law presumably has 
 exerted no influence on the trade unions. 
 
 The economic condition of workmen injured by accidents has un- 
 doubtedly been improved. The contribution of the workmen by the pay- 
 ments being taken out of the sick funds during the first 13 weeks is 
 of no importance financially, but this arrangement makes it easier to 
 determine the extent to which the earning capacity has been impaired 
 and renders simulation more difiicult, besides enabling the injured 
 party to secure payments immediately after the accident. It is there- 
 fore recommended that this arrangement be retained but the insiff- 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 325 
 
 nificant contribution of the workmen involved by it must not be raised. 
 The separation of industrial from agricultural accident insurance, in 
 my opinion, is in the interests of both, because the conditions are so 
 different in each. 
 
 Accident prevention which the law requires from the Employers' importance 
 
 of Accident 
 
 Associations is of the utmost importance in diminishing the accidents prevention 
 which will always be connected with the operation of factories. 
 
 The views expressed above presumably coincide with those held 
 by most other manufacturers, although small employers frequently com- 
 plain of the burdens which are imposed on them by accident insurance. 
 
 Hoping that these statements will be of some use to you, I beg 
 to remain 
 
 Yours truly, 
 
 (Signed) O. Metzenthin, 
 
 President of the Board of Directors of the North German Textile 
 Employers' Association. 
 
 Mainz, August 26, 1010. 
 
 Mr. p. C. Schwedtman. 
 Bear Sir: 
 
 In compliance with your request of the 20th inst, I am very much 
 pleased to state my views regarding the questions asked. 
 
 The German Accident Compensation Insurance System, in my 
 opinion, has proven thoroughly satisfactory in its present form, both 
 from a business and a humane point of view. I consider it absolutely 
 necessary that this system and particularly the present organization 
 which is based on self-governing Employers' Associations, be retained, j^^ Need of 
 There have been no developments of any kind to render changes of a Changes 
 fundamental nature necessary. I consider compulsory insurance a ne- 
 cessity if a national system of this kind is to succeed. The German 
 Accident Compensation Insurance System has had no effect on trade 
 
326 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Belittles 
 Value of 
 Workers' 
 Contribution 
 
 I 
 
 unions in my opinion. That accident compensation insurance has 
 exerted a beneficial social influence on the workers as a class can- 
 not be doubted. Technically there is no such thing as a "workers' 
 contribution" to accident compensation insurance; under the Grerman 
 system of social insurance the workers merely contribute to the sick 
 funds, out of which the compensation for accidents is paid during the 
 first 13 weeks. The contribution in question therefore is of little import- 
 ance, so far as carrying the Accident Compensation Insurance Law into 
 effect is concerned. Simulation could hardly be expected to diminish 
 on account of the workers' contribution. It is of interest to the indus- 
 trial employer to have agriculture form a part of the system. 
 
 Even if our social insurance legislation has so far found but little 
 gratitude and appreciation on the part of the workmen, I nevertheless 
 consider it the duty of our industries, commerce, trade and agriculture, 
 to continue developing and improving the system in every way possible. 
 
 Yours respectfully, 
 
 (Signed) H. R. v. Maffei, 
 Chairman South German Iron and Steel Employers' Association. 
 
 Employers' 
 Influence on 
 Original Ac- 
 cident Legis- 
 lation 
 
 THE GERMAN ACCIDENT INSURANCE SYSTEM 
 
 By MR. ROTGER 
 
 Ckairman of tbe Central Federation of German Industrialists 
 
 As far back as 1879 the Central Federation of German Industrial- 
 ists advocated, through one of its prominent members, Baron von 
 Stumm-Halberg, the establishment of an old age and invalidity insur- 
 ance system, and in 1880 a memorandum was submitted to Prince 
 Bismarck by Louis Baare, also a leading industrialist and a well-known 
 member of the Federation, which was of far-reaching influence on 
 the first government bill dealing with the subject of accident insur- 
 
LETTERS FROM PROMINENT GERMAN AUTHORITIES 327 
 
 ance. At the Central Federation's Committee meeting on January 30, 
 
 1881, this bill met with hearty approval and enthusiastic support. 
 
 In the Central Federation of German Industrialists and among German 
 
 manufacturers generally the conviction is felt that the German Acci- turers Have 
 
 dent Compensation Insurance System has proven beneficial, and that ^°""^ Sys- 
 tem Beneficial 
 
 its fundamental principles are well conceived. After the system had 
 
 been in operation for ten years, the supplementary bill introduced with 
 
 reference to it gave rise to a discussion at the Committee meeting on 
 
 the Central Federation, held on October 18, 1897, and the remarks made 
 
 on that occasion by the late Mr. Jencke, a former president of the 
 
 Central Federation and himself an expert on the subject, met with 
 
 universal approval. His statement culminated in the conclusion that 
 
 the fundamental principles of the law required no revision of any An Expert's 
 
 Opinion Ex- 
 kind and that the opinion prevailed, both in industrial circles and out- pressed 14 
 
 side of them, that of the three insurance laws the one relating to ^ ' 
 
 accident compensation insurance had proven the greatest success of all. 
 
 That is as true today as it was then. The industrialists willingly 
 
 bear the financial burden of accident insurance and also do all the 
 
 work connected with the operation of the system. They are very 
 
 jealous, however, of their right to manage their own affairs, and justly insist on 
 
 Self-Govern- 
 so, for the self-governing feature of the Employers' Associations is of ment 
 
 vital importance to the success of the accident insurance system. 
 
 The good work done by the Employers' Associations is being rec- 
 ognized and appreciated everywhere, even outside of manufacturing 
 circles. 
 
 Details, of course, cannot be gone into here. That some of the 
 things found in the original law and in the subsequent amendments 
 were not entirely approved by the German industrialists but even 
 attacked and vigorously fought, where, in the opinion of the employ- 
 ing class, unwarranted demands were made, cannot cause surprise. 
 Thus the excessive increase in the reserve funds called for by the sup- 
 plementary bill of 1900 was opposed from the very start and, as a 
 result, the new Imperial Insurance Regulation bill which is now pend- 
 ing, again relieves this condition. 
 
APPENDIX 
 
 PART TWO 
 
 1. Englisk Compensation Act of 1906. 
 
 2. Contracting Out Scneme oi the Great Eastern Railway Com- 
 
 pany and Financial Operations of Same for Year Ending 
 June 30, 1910. 
 
 3. Statements Made by LaLor Union Officials and Employers 
 
 Before Departmental Committee of 1904, Describing Efiect 
 of Act of 1897 upon Elderly and Defective ^V^orkmen. 
 
 4. Statement of Purpose and Operation of tne Iron Trade 
 
 Employers' Insurance Association Ly tlie Secretary, Mr. S. 
 R. Glad^vell, London, England. 
 
 5. Statistical Tables of Accidents of Employment During Years 
 
 1904 to 1909, Inclusive. Prepared by Department of Labor, 
 Dominion of Canada. 
 
 329 
 
Ill 
 
WORKMEN'S COMPENSATION ACT, 1906 
 
 (6 Edw. VII. c. 58) 
 
 An Act to consolidate and amend the Law with respect to Com- 
 pensation to Workmen for Injuries suffered in the course of their 
 Employment. (21st December, 1906.) 
 
 Be it enacted by the King's most Excellent Majesty, by and with 
 the advice and consent of the Lords Spiritual and Temporal, and Com- 
 mons, in this present Parliament assembled, and by the authority of 
 the same, as follows: 
 
 I 
 
 (1) If in any employment personal injury by accident arising out 
 of and in the course of the employment is caused to a workman, his 
 employer shall, subject as hereinafter mentioned, be liable to pay com- 
 pensation in accordance with the First Schedule to this Act. 
 
 (2) Provided that 
 
 (a) The employer shall not be liable under this Act in re- 
 
 spect of any injury which does not disable the work- 
 man for a period of at least one week from earning 
 full wages at the work at which he was employed. 
 
 (b) When the injury was caused by the personal negli- 
 
 gence or wilful act of the employer or of some person 
 for whose act or default the employer is responsible, 
 nothing in this Act shall affect any civil liability of 
 the employer, but in that case the workman may, at 
 his option, either claim compensation under this Act or 
 
 take proceedings independently of this Act; but the 
 
 331 
 
332 ACCIDENT PREVENTION AND RELIEF 
 
 employer shall not be liable to pay compensation for 
 injury to a workman by accident arising out of and 
 in the course of the employment both independently of 
 and also under this Act, and shall not be liable to 
 any proceedings independently of this Act, except in 
 case of such personal negligence or wilful act as afore- 
 said. 
 (c) If it is proved that the injury to a workman is attri- 
 butable to the serious and wilful misconduct of the 
 workman, any compensation claimed in respect of 
 that injury shall, unless the injury results in death 
 or serious and permanent disablement, be disallowed. 
 
 (3) If any question arises in any proceedings under this Act as 
 to the liability to pay compensation under this Act (including any 
 question as to whether the person injured is a workman to whom this 
 Act applies), or as to the amount or duration of compensation under 
 this Act, the question, if not settled by agreement, shall, subject to 
 the provisions of the First Schedule to this Act, be settled by arbi- 
 tration, in accordance with the Second Schedule to this Act. 
 
 (4) If, within the time hereinafter in this Act limited for taking 
 proceedings, an action is brought to recover damages independently 
 of this Act for injury caused by any accident and is determined in 
 Buch action that the injury is one for which the employer is not 
 liable in such action, but that he would have been liable to pay com- 
 pensation under the provisions of this Act, the action shall be dis- 
 missed; but the court in which the action is tried shall, if the plaintifE 
 so choose, proceed to assess such compensation, but may deduct from 
 such compensation all or part of the costs which, in its judgment, have 
 been caused by the plaintiff bringing the action instead of proceeding 
 under this Act. In any proceeding under this subsection, when the 
 court assesses the compensation it shall give a certificate of the com- 
 pensation it has awarded and the directions it has given as to the de- 
 duction for costs, and such certificate shall have the force and effect 
 of an award under this Act. 
 
workmen's compensation act, 1906 333 
 
 (5) Nothing in this Act shall affect any proceeding for a fine 
 under the enactments relating to mines, factories, or workshops, 
 or the application of any such fine. 
 
 IT 
 
 (1) Proceedings for the recovery under this Act of compensation 
 for an injury shall not be maintainable unless notice of the accident 
 has been given as soon as practicable after the happening thereof and 
 before the workman has voluntarily left the employment in which he 
 was injured, and unless the claim for compensation with respect to 
 such accident has been made within six months from the occurrence 
 of the accident causing the injury, or, in case of death, within six 
 months from the time of death: 
 
 Provided always that 
 
 (a) the want of or any defect or inaccuracy in such notice 
 
 shall not be a bar to the maintenance of such pro- 
 ceedings if it is found in the proceedings for settling 
 the claim that the employer is not, or would not, if 
 a notice or an amended notice were then given and the 
 hearing postponed, be prejudiced in his defence by 
 the want, defect, or inaccuracy, or that such want, de- 
 fect, or inaccuracy was occasioned by mistake, ab- 
 sence from the United Kingdom, or other reasonable 
 cause; and 
 
 (b) the failure to make a claim within the period above 
 
 specified shall not be a bar to the maintenance of 
 such proceedings if it is found that the failure was 
 occasioned by mistake, absence from the United King- 
 dom, or other reasonable cause. 
 
 (2) Notice in respect of an injury under this Act shall give the 
 name and address of the person injured, and shall state in ordinary 
 language, the cause of the injury and the date at which the accident 
 happened, and shall be served on the employer, or, if there is more 
 than one employer, upon one of such employers. 
 
334 ACCIDENT PREVENTION AND RELIEF 
 
 (3) The notice may be served by delivering the same at, or send- 
 ing it by post in a registered letter addressed to, the residence or place 
 of business of the person on whom it is to be served. 
 
 (4) Where the employer is a body of persons, corporate or un- 
 
 incorporate, the notice may also be served by delivering the same 
 
 at, or by sending it by post in a registered letter addressed to, the 
 
 employer at the office, or, if there be more than one office, any one 
 
 of the offices of such body. 
 
 Ill 
 
 (1) If the Registrar of FYiendly Societies, after taking steps to as- 
 certain the views of the employer and workman, certifies that any 
 scheme of compensation, benefit, or insurance for the workman of an 
 employer in any employment, whether or not such scheme includes 
 other employers and their workmen, provides scales of compensation 
 not less favorable to the workmen and their dependants than the corre- 
 sponding scales contained in this Act, and that, where the scheme pro- 
 vides for contributions by the workmen, the scheme confers benefits 
 at least equivalent to those contributions, in addition to the benefits 
 to which the workmen would have been entitled under this Act, and 
 that a majority (to be ascertained by ballot) of the workmen to whom 
 the scheme is applicable are in favor of such scheme, the employer 
 may, whilst the certificate is In force, contract with any of his work- 
 men that the provisions of the scheme shall be substituted for the pro- 
 visions of this Act, and thereupon the employer shall be liable only 
 in accordance with the scheme, but, save as aforesaid, this Act shall 
 apply notwithstanding any contract to the contrary made after the com- 
 mencement of this Act. 
 
 (2) The Registrar may give a certificate to expire at the end of a 
 limited period of not less than five years, and may from time to time 
 renew with or without modifications such a certificate to expire at 
 the end of the period for which it is renewed. 
 
 (3) No scheme shall be certified which contains an obligation 
 upon the workmen to join the scheme as a condition of their hiring, 
 or which does not contain provisions enabling a workman to with- 
 draw from the scheme. 
 
workmen's compensation act, 1906 335 
 
 (4) If complaint is made to the Registrar of Friendly Societies by 
 or on behalf of the workmen of any employer that the benefits con- 
 ferred by any scheme no longer conform to the conditions stated in 
 subsection (1) of this section, or that the provisions of such scheme 
 are being violated, or that the scheme is not being fairly administered, 
 or that satisfactory reasons exist for revoking the certificate, the 
 Registrar shall examine into the complaint, and, if satisfied that good 
 cause exists for such complaint, shall, unless the cause of complaint 
 is removed, revoke the certificate. 
 
 (5) When a certificate is revoked or expires, any moneys or 
 securities held for the purpose of the scheme shall, after due pro- 
 vision has been made to discharge the liabilities already accrued, be 
 distributed as may be arranged between the employer and workmen, 
 or as may be determined by the Registrar of Friendly Societies in the 
 event of a difference of opinion. 
 
 (6) Whenever a scheme has been certified as aforesaid, it shall be 
 the duty of the employer to answer all such inquiries and to furnish all 
 such accounts in regard to the scheme as may be made or required 
 by the Registrar of Friendly Societies. 
 
 (7) The Chief Registrar of Friendly Societies shall include in his 
 annual report the particulars of the proceedings of the Registrar under 
 this Act. 
 
 (8) The Chief Registrar of Friendly Societies may make regula- 
 tions for the purpose of carrying this section into effect. 
 
 IV 
 
 (1) Where any person (in this section referred to as the princi- 
 pal) in the course of or for the purposes of his trade or business, con- 
 tracts with any other person (in this section referred to as the con- 
 tractor) for the execution by or under the contractor of the whole or 
 any part of any work undertaken by the principal, the principal shall 
 be liable to pay to any workman employed in the execution of the work 
 any compensation under this Act which he would have been liable to 
 
336 ACCIDENT PREVENTION AND RELIEF 
 
 pay if that workman had been immediately employed by him; and 
 where compensation is claimed from or proceedings are taken against 
 the principal, then, in the application of this Act references to the 
 principal shall be substituted for the references to the employer, except 
 that the amount of compensation shall be calculated with reference to 
 the earnings of the workman under the employer by whom he is im- 
 mediately employed: 
 
 Provided, that, where the contract relates to threshing, plowing, 
 or other agricultural work, and the contractor provides and uses 
 machinery driven by mechanical power for the purpose of such work, 
 he and he alone shall be liable under this Act to pay compensation 
 to any workman employed by him on such work. 
 
 (2) Where the principal is liable to pay compensation under this 
 section, he shall be entitled to be indemnified by any person who would 
 have been liable to pay compensation to the workman independently 
 of this section, and all questions as to the right and amount of any 
 such indemnity shall in default of agreement be settled by arbitra- 
 tion under this Act. 
 
 (3) Nothing in this section shall be construed as preventing a 
 workman recovering compensation under this Act from the contrac- 
 tor instead of the principal. 
 
 (4) This section shall not apply in any case where the accident 
 occurred elsewhere than on, or in, or about premises on which the 
 principal has undertaken to execute the work or which are otherwise 
 under his control or management. 
 
 V 
 
 (1) "Where any employer has entered into a contract with any 
 insurers in respect of any liability under this Act to any workman, 
 then, in the event of the employer becoming bankrupt, or making a 
 composition or arrangement with his creditors, or if the employer is 
 a company in the event of the company having commenced to be wound 
 up, the rights of the employer against the insurers as respects that 
 
workmen's compensation act, 1906 337 
 
 liability shall, notwithstanding anything in the enactments relating to 
 bankruptcy and the winding up of companies, be transferred to and 
 vest in the workmen, and upon any such transfers the insurer shall 
 have the same rights and remedied and be subject to the same lia- 
 bilities as if they were the employer, so however that the insurers 
 shall not be under any greater liability to the workman than they 
 would have been under to the employer. 
 
 (2) If the liability of the insurers to the workman is less than 
 the liability of the employer to the workman, the workman may prove 
 for the balance in the bankruptcy or liquidation. 
 
 (3) There shall be included among the debts which under section 
 tjne of the Preferential Payments in Bankruptcy Act, 1888, and section 
 four of the Preferential Payments in Bankruptcy (Ireland) Act, 1889, 
 are in the distribution of the property of a bankrupt and in the dis- 
 tribution of the assets of a company being wound up to be paid in 
 priority to all other debts, the amount, not exceeding in any individual 
 case one hundred pounds, due in respect of any compensation the lia- 
 bility wherefore accrued before the date of the receiving order or the 
 date of the commencement of the winding up, and those Acts and the 
 Preferential Payments in Bankruptcy Amendment Act, 1897, shall have 
 effect accordingly. Where the compensation is a weekly payment, the 
 amount due in respect thereof shall, for the purposes of this pro- 
 vision, be taken to be the amount of the lump sum for which the week- 
 ly payment could, if redeemable, be redeemed if the employer made an 
 application for that purpose under the First Schedule to this Act. 
 
 (4) In the case of the winding up of a company within the mean- 
 ing of the Stannaries Act, 1887, such an amount as aforesaid, if the 
 compensation is payable to a miner or the dependants of a miner, shall 
 have a like priority as is conferred on wages of miners by section 
 nine of that act, and that section shall have effect accordingly. 
 
 (5) The provisions of this section with respect to preferences and 
 priorities shall not apply where the bankrupt or the company being 
 wound up has entered into such a contract with insurers as aforesaid. 
 
338 ACCIDENT PREVENTION AND RELIEF 
 
 (6) This section shall not apply where a company is wound up 
 voluntarily merely for the purposes of reconstruction or of amalga- 
 mation with another company. 
 
 VI 
 Where the injury for which compensation is payable under this 
 act was caused under circumstances creating a leg^ liability in some 
 person other than the employer to pay damages in respect thereof: 
 
 (1) The workman may take proceedings both against that 
 
 person to recover damages and against any person 
 liable to pay compensation under this act for such 
 compensation, but shall not be entitled to recover 
 both damages and compensation; and 
 
 (2) If the workman has recovered compensation under this 
 
 Act the person by whom the compensation was paid 
 (and any person who has been called on to pay an 
 indemnity under the section of this Act relating 
 to sub-contracting) shall be entitled to be indemni- 
 fied by the person so liable to pay damages as 
 aforesaid, and all questions as to the right to and 
 amount of any such indemnity shall, in default of 
 agreement, be settled by action, or, by consent of the 
 parties, by arbitration under this Act. 
 
 VII 
 
 (1) This Act shall apply to masters, seamen, and apprentices to 
 the sea service and apprentices in the sea fishing service, provided 
 that such persons are workmen within the meaning of this Act, and 
 are members of the crew of any ship registered in the United King- 
 dom, or of any other British ship or vessel of which the owner, or (if 
 there is more than one owner) the managing owner, or manager re- 
 sides or has his principal place of business in the United Kingdom, 
 subject to the following modifications: 
 
 (a) The notice of accident and the claim for compensation 
 may, except where the person injured is the master, 
 
WORKMEN^S COMPENSATION ACT, 1906 339 
 
 be served on the master of the ship as if he were the 
 employer, but where the accident happened and the 
 incapacity commenced on board the ship it shall not 
 be necessary to give any notice of the accident; 
 
 (b) In the case of the death of the master, seaman, 
 
 or apprentice, the claim for compensation shall be 
 made within six months after news of the death has 
 been received by the claimant; 
 
 (c) Where an injured master, seaman, or apprentice is 
 
 discharged or left behind in a British possession or 
 in a foreign country, depositions respecting the cir- 
 cumstances and nature of the injury may be taken 
 by any judge or magistrate in the British possession, 
 and by any British consular officer in the foreign 
 country, and if so taken shall be transmitted by the 
 person by whom they are taken to the Board of Trade, 
 and such depositions or certified copies thereof shall 
 in any proceedings for enforcing the claim be admis- 
 sible in evidence as provided by sections six hundred 
 and ninety-one and six hundred and ninety-five of the 
 Merchant Shipping Act, 1894, and those sections shall 
 apply accordingly; 
 
 (d) In the case of the death of a master, seaman, or ap- 
 
 prentice, leaving no dependants, no compensation 
 shall be payable, if the owner of the ship is under 
 the Merchant Shipping Act, 1894, liable to pay the 
 expenses of the burial; 
 
 (e) The weekly payment shall not be payable in respect of 
 
 the period during which the owner of the ship is, 
 under the Merchant Shipping Act, 1894, as amended 
 by any subsequent enactment, or otherwise, liable 
 to defray the expenses of maintenance of the injured 
 master, seaman, or apprentice; 
 
340 ACCIDENT PREVENTION AND RELIEF 
 
 (f) Any sum payable by the way of compensation by the 
 
 owner of a ship under this Act shall be paid in full 
 notwithstanding anything in section five hun- 
 dred and three of the Merchant Shipping Act, 
 1894, (which relates to the limitation of a ship own- 
 er's liability in certain cases of lo* of life, injury or 
 damage), but the limitation on the owner's liability 
 imposed by that section shall apply to the amount 
 recoverable by way of indemnity under the section 
 of this Act relating to remedies both against em- 
 ployer and stranger as if the indemnity were dam- 
 ages for the loss of .life or personal injury: 
 
 (g) Subsections (2) and (3) of section one hundred and 
 
 seventy-four of the Merchant Shipping Act, 1894, 
 (which relates to the recovery of wages or seamen 
 lost with their ship), shall apply as respects proceed- 
 ings for the recovery of compensation by dependants 
 of masters, seamen, and apprentices lost with their 
 ship as they apply with respect to proceedings for 
 the recovery of wages due to seamen and apprentices; 
 and proceedings for the recovery of compensation 
 shall in such a case be maintainable if the claim is 
 made within eighteen months of the date at which 
 the ship is deemed to have been lost with all hands; 
 
 (2) This Act shall not apply to such members of the crew of a 
 fishing vessel as are remunerated by shares in the profits or the gross 
 earnings of the working of such vessel. 
 
 (3) This section shall extend to pilots to whom Part X of the 
 Merchant Shipping Act, 1894, applies, as if a pilot when employed on 
 any such ship as aforesaid were a seaman and a member of the crew. 
 
WORKMEN^S COMPENSATION ACT, 1906 341 
 
 VIII 
 (1) Where — 
 
 (i) the certifying surgeon appointed under the Factory and 
 Workshop Act, 1901, for the district in which a work- 
 man is employed certifies that the workman is suf- 
 fering from a disease mentioned in the Third Sched- 
 ule to this Act, and is thereby disabled from earning 
 full wages at the work at which he was employed; or 
 
 (ii) a workman is, in pursuance of any special rules or 
 regulations made under the Factory and Workshop 
 Act, 1901, suspended from his usual employment on 
 account of having contracted any such disease; or 
 
 (iii) the death of a workman is caused by any such dis- 
 ease; and the disease is due to the nature of any 
 employment in which the workman was employed 
 at any time within the twelve months previous to the 
 date of the disablement or suspension, whether under 
 one or more employers, he or his dependants shall be 
 entitled to compensation under this Act as if the dis- 
 ease or such suspension as aforesaid were a personal 
 injury by accident arising out of and in the course 
 of that employment, subject to the following modifi- 
 cations; 
 
 ;(a) The disablement or suspension shall be treated as the 
 happening of the accident; 
 
 (b) If it be proved that the workman has at the time of 
 
 entering the employment wilfully and falsely rep- 
 resented himself in writing as not having previously 
 suffered from the disease, compensation shall not be 
 payable; 
 
 (c) The compensation shall be recoverable from the em- 
 
 ployer who last employed the workman during the 
 
342 ACCIDENT PREVENTION AND RELIEF 
 
 last twelve months in the employment to the nature 
 of which the disease was due; 
 
 Provided that — 
 
 (i) the workman or his dependants if so required shall 
 furnish that employer with such information as to 
 the names and addresses of all th^ other employers 
 who employed him in the employment during the 
 said twelve months as he or they may possess, and, 
 if such information is not furnished, or is not suffi- 
 cient to enable that employer to take proceedings 
 under the next following proviso, that employer upon 
 proving that the disease was not contracted whilst 
 the workman was in his employment shall not be 
 liable to pay compensation; and 
 
 (ii) if that employer alleges that the disease was in fact 
 contracted whilst the workman was in the employ- 
 ment of some other employer, and not whilst in his 
 employment, he may join such other employer as a 
 party to the arbitration, and if the allegation is 
 proved that other employer shall be the employer 
 from whom the compensation is to be recoverable; 
 and 
 
 (iii) if the disease is of such a nature as to be contracted 
 by a gradual process, any other employers who during 
 the said twelve months employed the workman in the 
 employment to the nature of which the disease was 
 due shall be liable to make to the employer from 
 whom compensation is recoverable such contributions 
 as, in default of agreement, may be determined in 
 the arbitration under this Act for settling the amount 
 of the compensation; 
 
 (d) The amount of the compensation shall be calculated 
 with reference to the earnings of the workman under 
 
WORKMEN^S COMPENSATION ACT, 1906 343 
 
 the employer from whom the compensation is recover- 
 able; 
 
 (e) The employer to whom notice of the death, disablement, 
 
 or suspension is to be given shall be the employer who 
 last employed the workman during the said twelve 
 months in the employment to the nature of which 
 the disease was due, and the notice may be given 
 notwithstanding that the workman has voluntarily 
 left his employment. 
 
 (f) If an employer or a workman is agreed by the action 
 
 of a certifying or other surgeon in giving or refusing 
 to give a certificate of disablement or in suspending 
 or refusing to suspend a workman for the purposes 
 of this section, the matter shall in accordance with 
 regulations made by the Secretary of State be refer- 
 red to a medical referee, whose decision shall be final. 
 
 (2) If the workman at or immediately before the date of the dis- 
 ablement or suspension was employed in any process mentioned in 
 the second column of the Third Schedule to this Act, and the disease 
 contracted is the disease in the first column of that schedule set oppo- 
 site the description of the process, the disease, except where the cer- 
 tifying surgeon certifies that in his opinion the disease was not due 
 to the nature of the employment, shall be deemed to have been due 
 to the nature of that employment, unless the employer proves the con- 
 trary. 
 
 (3) The Secretary of State may make rules regulating the duties 
 and fees of certifying and other surgeons (including dentists) under 
 this section. 
 
 (4) For the purposes of this section the date of disablement shall 
 be such date as the certifying surgeon certifies as the date on which 
 the disablement commenced, or, if he is unable to certify such a date, 
 the date on which the certificate is given: Provided that — 
 
 (a) Where the medical referee allows an appeal against a 
 refusal by a certifying surgeon to give a certificate 
 
344 ACCIDENT PREVENTION AND RELIEF 
 
 of disablement, the date of disablement shall be such 
 date as the medical referee may determine; 
 (b) Where a workman dies without having obtained a cer- 
 tificate of disablement, or is at the time of death not 
 in receipt of a weekly payment on account of disable- 
 ment, it shall be the date of death. 
 
 (5) In such cases, and subject to such conditions as the Secre- 
 tary of State may direct, a medical practitioner appointed by the Sec- 
 retary of State for the purpose shall have the powers and duties of a 
 certifying surgeon under this section, and this section shall be con- 
 strued accordingly. 
 
 (6) The Secretary of State may make orders for extending the 
 provisions of this section to other diseases and other processes, and 
 to injuries due to the nature of any employment specified in the order 
 not being injuries by accident, either without modification or subject 
 to such modification as may be contained in the order. 
 
 (7) Where after inquiry held on the application of any employer 
 or workman engaged in any industry to which this section applies, 
 it appears that a mutual trade insurance company or society for in- 
 suring against the risks under this section has been established for 
 the industry, and that a majority of the employers engaged in that 
 industry are insured against such risks in the company or society 
 and that the company or society consents, the Secretary of State may, 
 by Provisional Order, require all employers in that industry to insure 
 in the company or society upon such terms and under such conditions 
 and subject to such exceptions as may be set forth in the Order. 
 Where such a company or society has been established, but is con- 
 fined to employers in any particular locality or of any particular 
 class, the Secretary of State may for the purposes of this provision 
 treat the industry, as carried on by employers in that locality or of 
 that class, as a separate industry. 
 
 (8) A Provisional Order made under this section shall be of no 
 force whatever unless and until it is confirmed by Parliament, and if, 
 
workmen's compensation act, 1906 345 
 
 while the Bill confirming any such Order is pending in either House 
 of Parliament, a petition is presented against the Order, the Bill may 
 be referred to a select committee, and the petitioner shall be allowed 
 to appear and oppose as in the case of Private Bills, and any Act con- 
 firming any Provisional Order under this section may be repealed, 
 altered, or amended by a Provisional Order made and confirmed in 
 like manner. 
 
 (9) Any expenses incurred by the Secretary of State in respect 
 of any such Order, Provisional Order, or confirming Bill shall be de- 
 frayed out of moneys provided by Parliament. 
 
 (10) Nothing in this section shall affect the rights of a workman 
 to recover compensation in respect of a disease to which this section 
 does not apply, if the disease is a personal injury by accident within 
 the meaning of this Act. 
 
 IX 
 
 (1) This Act shall not apply to persons in the naval or military 
 service of the Crown, but otherwise shall apply to workmen employed 
 by or under the Crown to whom this Act would apply if the employer 
 were a private person: 
 
 Provided that in the case of a person employed in the private 
 service of the Crown, the head of that department of the Royal House- 
 hold in which he was employed at the time of the accident shall be 
 deemed to be his employer. 
 
 (2) The Treasury may, by a warrant laid before Parliament, 
 modify for the purposes of this Act their warrant made under section 
 one of the Superannuation Act, 1887, and notwithstanding anything 
 in that Act, or any such warrant, may frame schemes with a view to 
 their being certified by the Registrar of Friendly •Societires under this 
 Act. 
 
346 ACCIDENT PREVENTION AND RELIEF 
 
 X 
 
 (1) The Secretary of State may appoint such legally qualified 
 medical practitioners to be medical referees for the purposes of this 
 Act as he may, with the sanction of the Treasury, determine, and re- 
 muneration of, and other expenses incurred by, medical referees under 
 this Act shall, subject to regulations made by the Treasury, be paid 
 out of moneys provided by Parliament. 
 
 Where a medical referee has been employed as a medical practi- 
 tioner in connection with any case by or on behalf of an employer or 
 workman or by any insurers interested, he shall not act as medical 
 referee in that case. 
 
 (2) The remuneration of an arbitrator appointed by a judge of 
 the county courts under the Second Schedule to this Act shall be paid 
 out of moneys provided by Parliament in accordance with regulations 
 made by the Treasury. 
 
 XI 
 (1) If it is alleged that the owners of any ship are liable as 
 such owners to pay compensation under this Act, and at any time that 
 ship is found in any port or river of England or Ireland, or within 
 three miles of the coast thereof, a judge of any court of record in 
 England or Ireland may, upon its being shown to him by any person 
 applying in accordance with the rules of the court that the owners are 
 probably liable as such to pay such compensation, and that none of the 
 owners reside in the United Kingdom, issue an order directed to any 
 oflScer of customs or other officer named by the judge requiring him 
 to detain the ship until such time as the owners, agent, master, or 
 consignee thereof have paid such compensation, or have given security, 
 to be approved by the judge, to abide the event of any proceedings that 
 may be instituted to recover such compensation and to pay such com- 
 pensation and costs as may be awarded thereon; and any officer of cus- 
 
workmen's compensation act, 1906 347 
 
 toms or other officer to whom the order is directed shall detain the 
 ship accordingly. 
 
 (2) In any legal proceeding to recover such compensation, the 
 person giving security shall be made the defendant, and the produc- 
 tion of the order of the judge, made in relation to the security, shall 
 be conclusive evidence of the liability of the defendant to the proceed- 
 ing. 
 
 (3) Section six hundred and ninety-two of the Merchant Shipping 
 Act, 1894, shall apply to the detention of a ship under this Act as it 
 applies to the detention of a ship under that Act, and, if the owner of 
 a ship is a corporation, it shall for the purposes of this section be 
 deemed to reside in the United Kingdom if it has an office in the 
 United Kingdom at which service of writs can be effected. 
 
 XII 
 
 (1) Every employer in any industry to which the Secretary of 
 State may direct that this section shall apply shall, on or before such 
 day in every year as the Secretary of State may direct, send to the 
 Secretary of State a correct return specifying the number of injuries 
 in respect of which compensation has been paid by him under this 
 Act during the previous year, and the amount of such compensation, 
 together with such other particulars as to the comi)ensation as the Secre- 
 tary of State may direct, and in default of complying with this sec- 
 tion shall be liable on conviction under the Summary Jurisdiction 
 Acts to a fine not exceeding five pounds. 
 
 (2) Any regulations made by the Secretary of State containing 
 such directions as aforesaid shall be laid before both Houses of Par- 
 liament as soon as may be after they are made. 
 
 XIII 
 In this Act, unless the context otherwise requires, — 
 
 "Employer" includes any body of persons corporate or incorpo- 
 
348 ACCIDENT PREVENTION AND RELIEF 
 
 rate and the legal personal representative of a deceased em- 
 ployer, and where the services of a workman are temporarily- 
 lent or let on hire to another person by the person with whom 
 the workman has entered into a contract of service or ap- 
 prenticeship, the latter shall, for the purposes of this Act, be 
 deemed to continue to be the employer of t\e workman whilst 
 he is working for that other person; 
 "Workman" does not include any person employed otherwise 
 than by way of manual labor whose remuneration exceeds 
 two hundred and fifty pounds a year, or a person whose em- 
 ployment is of a casual nature and who is employed otherwise 
 than for the purposes of the employer's trade or business, or 
 a member of a police force, or an out-worker, or a member 
 of the employer's family dwelling in his house, but, save as 
 aforesaid, means any person who has entered into or works 
 under a contract of service or apprenticeship with an em- 
 ployer, whether by way of manual labor, clerical work, or 
 otherwise, and whether the contract is expressed or implied, 
 or oral or in writing; 
 
 Any reference to a workman who has been injured shall, where 
 the workman is dead, include a reference to his legal per- 
 sonal representative or to his dependants or other persons to 
 whom or for whose benefit compensation is payable; 
 
 "Dependants" means such of the members of the workman's 
 family as were wholly or in part dependent upon the earnings 
 of the workman at the time of his death, or would but for the 
 incapacity due to the accident have been so dependent, and 
 where the workman, being the parent or grandparent of an 
 illegitimate child, leaves such a child so dependent upon his 
 earnings, or, being an illegitimate child, leaves a parent or 
 grandparent so dependent upon his earnings, shall include 
 such an illegitimate child and parent or grandparent respec- 
 tively. 
 
workmen's compensation act, 1906 349 
 
 "Members of a family" means wife or husband, father, mother, 
 grandfather, grandmother, step-father, step-mother, son daugh- 
 ter, grandson, grand-daughter, step-son, step-daughter, brother, 
 sister, half-brother, half-sister; 
 
 **Ship," "vessel," "seaman," and "port" have the same meaning 
 as in the Merchant Shipping Act, 1894; 
 
 **Manager," in relation to a ship, means the ship's husband or 
 other person to whom the management of the ship is en- 
 trusted by or on behalf of the owner; 
 
 "Police force" means a police force to which the Police Act, 
 1890, or the Police (Scotland) Act, 1890, applies, The City of 
 London Police Force, The Royal Irish Constabulary, and The 
 Dublin Metropolitan Police Force; 
 
 **Outworker" means a person to whom articles or materials are 
 given out to be made up, cleaned, washed, altered, ornamented, 
 finished, or repaired, or adapted for sale, in his own home 
 or on other premises not under the control or management of 
 the person who gave out the materials or articles. 
 
 The exercise and performance of the powers and duties of a 
 local or other public authority shall, for the purposes of this 
 Act be treated as the trade or business of the authority; 
 
 "County Court," "judge of the county court," "registrar of the 
 county court," "plaintiff," and "rules of court," as respects 
 Scotland, means respectively sheriff court, sheriff, sheriff clerk, 
 pursuer, and act of sederunt. 
 
 XIV 
 
 In Scotland, where a workman raises an action against his em- 
 ployer independently of this Act in respect of any injury caused by 
 accident arising out of and in the course of the employment, the 
 action, if raised in the sheriff court and concluding for damages under 
 the Employers' Liability Act, 1880, or alternatively at common law or 
 under the Employers' Liability Act, 1880, shall, notwithstanding any- 
 
350 ACCIDENT PREVENTION AND RELIEF 
 
 thing contained in that Act, not be removed under that Act or other- 
 wise to the Court of Sessions, nor shall it be appealed to that court 
 otherwise than by appeal on a question of law; and for the purposes 
 of such appeal the provisions of the Second Schedule to this Act in 
 regard to an appeal from the decision of the sheriff on any question 
 of law determined by him as arbitrator under this Act shall apply. 
 
 XV 
 
 (1) Any contract (other than a contract substituting the provis- 
 ion of a scheme certified under the Workmen's Compensation Act, 
 1897, for the provisions of that Act) existing at the commencement 
 of this Act, whereby a workman relinquishes any right to compensa- 
 tion from the employer for personal injury arising out of and in the 
 course of his employment, shall not, for the purposes of this Act, be 
 deemed to continue after the time at which the workman's contract of 
 service would determine if notice of the determination thereof were 
 given at the commencement of this Act. 
 
 (2) Every scheme under the Workmen's Compensation Act, 1897, 
 in force at the commencement of this Act shall, if re-certified by the 
 Registrar of Friendly Societies, have effect as if it were a scheme under 
 this Act. 
 
 (3) The Registrar shall re-certify any such scheme if it is pro- 
 posed to his satisfaction that the scheme conforms, or has been so 
 modified as to conform, with the provisions of this Act as to schemes. 
 
 (4) If any such scheme has not been so re-certified before the 
 expiration from the commencement of this Act, the certificate shall be 
 revoked. 
 
 XVI 
 
 (1) This Act shall come into operation on the first day of July, 
 nineteen hundred and seven, but, except so far as it relates to refer- 
 ences to medical referees, and proceedings consequential thereon, 
 shall not apply in any case where the accident happened before the 
 commencement of this Act. 
 
WORKMEN^S COMPENSATION ACT, 1906 351 
 
 (2) The Workmen's Compensation Acts, 1897 and 1900, are here- 
 by repealed, but shall continue to apply to cases where the accident 
 happened before the commencement of this Act, except to the extent 
 to which this Act applies to those cases. 
 
 XVII 
 
 This Act may be cited as the Workmen's Compensation Act, 1906. 
 
II 
 
 SCHEME ESTABLISHED IN SUBSTITUTION FOR THE PROVISIONS 
 
 OF THE WORKMEN'S COMPENSATION ACT, 1906, BY THE 
 
 GREAT EASTERN RAILWAY COMPANY 
 
 The Great Eastern Railway Accident Fund (hereinafter called 
 "the Fund") shall be managed by a committee (hereinafter called 
 "the Committee") consisting of the chairman of the Great Eastern 
 Railway Company (hereinafter called "the Company") the deputy- 
 chairman, the chairman of the Finance Committee, the general 
 manager and the secretary of the Company and one other officer to 
 be appointed from time to time by the Board of Directors of the 
 Company, and five servants of the Company, being members of the 
 Fund (hereinafter called "the elective members"), two of whom shall 
 be elected by the delegates of the Great Eastern Railway New Pen- 
 sion Fund from among their number, one by and from the delegates 
 of the Great Eastern Railway New Pension Supplemental Fund, one 
 by and from the committee of management of the Great Eastern Rail- 
 way Provident Society, and one by and from the committee of man- 
 agement of the Great Eastern Railway Employees' Sick and Orphan 
 Society, and in accordance with rules (not inconsistent with the 
 terms of this scheme hereinafter called "the Scheme") to be from 
 time to time framed by the committee. Six members of the com- 
 mittee shall be a quorum. 
 
 353 
 
354 ACCIDENT PREVENTION AND RELIEF 
 
 The Committee may appoint a secretary and any medical and 
 other officers they may deem necessary who shall be subject to re- 
 moval at their discretion and ms-y fix the salaries of any such secre- 
 tary, medical and other officers and such salaries together with the 
 cost of stationery, printing, postages and clerical aid required for 
 the purposes of the Fund shall be paid as to two-thirds thereof 
 out of the revenues of the Company and as to the remaining one- 
 third thereof out of the contributions of the members. 
 
 Any servant of the Company (whether employed by them solely 
 or jointly with any other Railway Company if appointed by the Great 
 Eastern Company) shall be entitled to become a member of the Fund 
 upon making application for the purpose. It shall not be compulsory 
 upon any servant to join the Fund. Any member thereof may at 
 his discretion withdraw from membership at any time upon giving 
 seven days' notice in writing to the secretary' of the Fund. Provided 
 that upon the expiration of such notice the member so withdrawing 
 shdll cease to have any claim or interest in the Fund or to be entitled 
 to any benefit therefrom or thereunder in respect of any injury sus- 
 tained after such expiration and shall have no claim with regard to 
 any contributions which he has made to the Fund or with regard to 
 any distribution of the Fund or to participate in any balance thereof. 
 
 The contributions payable to the Fund shall be as follows: — 
 I. By each member Id. per week to be deducted from his wages 
 (a part of a week to count as a whole week). 
 II. By the Company out of their own revenues the following 
 amounts, viz.: — 
 
 (1) The full amount payable under Clause (A) set forth below 
 in case of death. 
 
 (2) In case of total incapacity a sum equivalent to a weekly 
 payment during the incapacity not exceeding 50 per cent, 
 of the weekly earnings of the member, such weekly pay- 
 ment not to exceed £1 or any increased weekly payments 
 (not to exceed £1) which may be made on review by the 
 Committee. Provided that 
 
SCHEME OF GREAT EASTERN RAILWAY 355 
 
 (a.) If the total incapacity lasts less than two weeks no 
 amount shall be payable in respect of the first week and 
 (b.) As regards the weekly payments during total incapacity 
 of a member who is under 21 years of age at the date of 
 the injury and whose weekly earnings are less than 20 
 shillings, 100 per cent, shall be substituted for 50 per 
 cent, of his weekly earnings but the weekly payment 
 shall in no case exceed 10 shillings. 
 (3) In case of partial incapacity the amount payable as set 
 forth below under Clause (C) or Clause (D) (3). 
 Provided further that after the payment of a weekly sum for a 
 period of six months as hereinafter mentioned, if the weekly 
 payment shall be commuted by the payment of a lump sum, 
 the amount payable by the Company to the Fund shall be 
 such lump sum. 
 FTJRTHERMORE, if the moneys of the Fund be found insufficient, 
 the Company guarantees the payment of every allowance payable un- 
 der the Scheme, but if at the end of five and one-half years from the 
 date from which the Scheme comes into operation or if the Registrar of 
 Friendly Societies shall have in the meantime renewed his Certificate 
 to the Scheme in the manner provided by section 3, sub-section (2) of 
 the Workmen's Compensation Act, 1906, then at the expiration of the 
 period or periods for which the Certificate to the Scheme shall 
 then or from time to time be so re-certified or if upon any revocation 
 of the certificate to the Scheme there shall be a balance standing 
 to the credit of the Fund after due provision has been made to dis- 
 charge the liabilities of the Fund, such balance shall be distributed 
 or applied to such purpose and in such manner as may be agreed 
 between the Board of Directors of the Company and the elective mem- 
 bers of the committee, or, in default of agreement, as may be deter- 
 mined by the Registrar of Friendly Societies. 
 
 The allowances to be paid out of the Fund shall be as follows: — 
 (A) In case of the death of a member through an injury arising out 
 of and in the course of his duties in the Company's service there 
 shall be paid: 
 
356 ACCIDENT PREVENTION AND RELIEF 
 
 (1) If the member leaves any dependants wholly dependent upon 
 
 his earnings at the time of his death, a sum equal to his 
 earnings in the employment of the Company as aforesaid 
 during the three years next preceding the injury, or the sum 
 of £150, whichever of those sums is the larger but not ex- 
 ceeding in any case £300, and if the periot of the member's 
 employment by the Company as aforesaid has been less than 
 the said three years then the amount of his earnings during 
 the said three years shall (subject to the aforesaid maximum 
 of £300) be deemed to be 156 times his average weekly earn- 
 ings during the period of his actual employment under the 
 Company. Provided that the amount of any payments made 
 to the member under Clauses (B) (C) or (D) below in re- 
 spect of sucb injury shall be deducted from such sum. 
 
 (2) If the member does not leave any such dependants but 
 
 leaves any dependants in part dependent upon his earnings, 
 at the time of his death, such sum not exceeding in any case 
 the amount payable under the foregoing provisions as may 
 be agreed upon, or in default of agreement as may be deter- 
 minded by the committee to be reasonable and proportionate 
 to the injury to the said dependants. 
 
 (3) If, however, the member leaves no dependants, the reason- 
 able expenses of his medical attendance and burial not ex- 
 ceeding £10 shall be paid. 
 
 (B) In case of total incapacity through an injury arising out of and 
 in the course of a member's duties in the Company's service, there 
 shall be paid to the member so long as such incapacity shall 
 continue, commencing from the date of such incapacity but not 
 for a longer period than six months, a weekly sum equal to his 
 weekly earnings, such weekly sum not to exceed £1. 
 
 (C) In case of partial incapacity through an injury arising out of and 
 in the course of a member's duties in the Company's service, there 
 shall be paid to the member so long as such partial incapacity 
 
SCHEME OF GREAT EASTERN RAILWAY 357 
 
 shall continue, commencing from tlie date of such partial in- 
 capacity, such a weekly sum not exceeding 50 per cent, of the 
 weekly earnings of the member (not exceeding £1) as the Com- 
 mittee in their absolute discretion may determine. Provided 
 that in fixing the amount of such last-mentioned sum regard 
 shall be had to any wages, payment, allowance or benefit which 
 the member may receive, during the period of his partial in- 
 capacity, from the Company or any other employer and such 
 weekly payment shall in no case exceed the difference between 
 the amount of the average weekly earnings of the member before 
 the accident and the average weekly amount which he is earning 
 or is able to earn in some suitable employment or business after 
 the accident but shall bear such relation to the amount of that 
 difference as under the circumstances of the case may appear 
 to the committee to be proper. 
 (D) After the payment of weekly allowance for the period of six 
 months there shall in respect of total or partial incapacity be 
 paid to the member: 
 
 (1) Such a lump sum as may be agreed between himself and the 
 committee (subject to the approval of the Board of Directors 
 of the Company). 
 
 Failing such agreement there shall be paid: 
 
 (2) During total incapacity an amount equal to one-half of the 
 member's weekly earnings, not exceeding £1 (except in the 
 case of a member who is under 21 years of age at the date 
 of the injury and whose average weekly earnings are less 
 than 20s., when the whole of such weekly earnings shall 
 be substituted for one-half, but in this case no weekly pay- 
 ment shall exceed IDs.). 
 
 (3) During partial incapacity such weekly sum as may be payable 
 to the member under Clause (C) above set forth. 
 
 (4) The directors of the Company may at their option at any 
 time require the committee to redeem any weekly payment 
 by the payment of a lump sum of such an amount as, where 
 
358 ACCIDENT PEEVENTIQN AND RELIEF 
 
 the incapacity is permanent, would, if invested in the pur- 
 chase of an immediate life annuity from the National Debt 
 Commissioners through the Post Office Savings Bank, pur- 
 chase an annuity equal to 75 per cent, of the annual value 
 of the said weekly payment. 
 In the construction of the Scheme — t 
 
 The expression "weekly earnings" means one-half of the actual 
 earnings of a member during the 14 days next previous to the date 
 ol the injury exclusive of expenses or similar payments. Provided 
 that such earnings shall not be less than the weekly wages of a 
 member as recorded in the staff books of the Company where re- 
 corded and in the case of casual laborers shall be deemed to be of 
 the same weekly amount as the wages of other laborers of the Com- 
 pany in a similar grade of employment. 
 
 The expression "dependants" means such members of the mem- 
 ber's family as were wholly or in part dependent upon the earnings 
 of the member at the time of his death or would but for the in- 
 capacity due to the accident have been so dependent and, where 
 the member being the parent or grandparent of an illegitimate child 
 leaves such a child so dependent upon his earnings or being an 
 illegitimate child leaves a parent or grandparent so dependent upon 
 his earnings, shall include such an illegitimate child and parent and 
 grandparent respectively. 
 
 Any weekly payment under the Scheme may be reviewed by the 
 committee at the request either of the Board of Directors of the 
 Company or of the member, and on such review may be ended, 
 diminished or increased, subject to the before mentioned maximum. 
 Provided that where the member was at the date of the accident un- 
 der 21 years of age and the review takes place more than 12 months 
 after the accident the amount of the weekly payment may be in- 
 creased to any amount not exceeding 50 per cent, of the weekly sum 
 which the member would probably have been earning at the date of 
 the review if he had remained uninjured, but not in any case exceed- 
 ing £1. 
 
SCHEME OF GREAT EASTERN RAILWAY 359 
 
 An allowance weekly payment or a sum paid by way of redemp- 
 tion thereof under the Scheme shall not be capable of being assigned, 
 charged or attached and shall not pass to any other person by opera- 
 tion of law nor shall any claim be set off against the same. 
 
 If in the opinion of the committee an injury sustained by a mem- 
 ber is attributable to serious and wilful misconduct on his part, any 
 compensation claimed in respect of that injury shall, unless the injury 
 results in death or serious and permanent incapacity, be disallowed. 
 
 It shall be within the discretion of the committee to decide 
 whether or not a member shall be entitled to the payment of an al- 
 lowance in respect of any previous injury he may have sustained if 
 after sustaining the injury he has continued or resumed work for a 
 period of one month. 
 
 The committee shall be entitled if they think fit to withhold 
 any allowance or continued allowance if the member shall refuse 
 to submit himself for examination by a duly qualified medical prac- 
 titioner when and so often as the committee may require. 
 
 The committee shall be at liberty, in their discretion, to pay any 
 death allowance either to the legal personal representative of a de- 
 ceased member or to any person to whom he may have bequeathed 
 the same by will or codicil or to dependants of his. And in the last- 
 mentioned case, notwithstanding that the deceased member may 
 have a personal representative or may by will or codicil have be- 
 queathed the allowance, when any allowance has once been paid to 
 a person to whom the committee have thought fit to pay the same, 
 neither the committee nor the Fund nor the Company nor any other 
 Railway Company who are joint undertakers with the Company, shall 
 be liable to any further claim in respect of the injury on account of 
 which such allowance was paid. 
 
 The committee may, if they think fit, invest in such manner as they 
 may decide, any moneys payable to minors during the minority of 
 such minors and may apply any such moneys or the proceeds thereof 
 for the benefit of such minors in such manner as they think fit. 
 
360 ACCIDENT PREVENTION AND RELIEF 
 
 Any question with regard to what is an injury within the mean- 
 ing of that term as used in the Scheme, as to who are dependants, 
 as to which dependants are entitled to receive payments due from 
 the Fund, and the amount or amounts of such payments, shall be de- 
 termined by the committee. 
 
 If ^ny question (other than such as the committee or the Board 
 of Directors of the Company are hereby expressly empowered to de- 
 cide) shall arise with respect to the Scheme or the right to aUer 
 the amount or duration of an allowance thereunder or with respect 
 to the construction or meaning of the Scheme or the rules framed 
 in connection therewith or any variation or alteration thereof re- 
 spectively, such question shall be settled by the committee whose 
 decision shall be final and conclusive. 
 
SCHEME OF GREAT EASTERN RAILWAY 361 
 
 RULES MADE BY THE COMMITTEE MENTIONED IN THE 
 
 FOREGOING SCHEME FOR THE MANAGEMENT OF THE 
 
 GREAT EASTERN RAILWAY ACCIDENT FUND 
 
 DEFINITIONS 
 
 1. In the interpretation of these rules the following words and 
 expressions shall have the following meanings unless excluded by the 
 context: — 
 
 "The Fund" shall mean the Great Eastern Railway Accident Fund. 
 
 "The Scheme" shall mean the foregoing Scheme. 
 
 "The Company" shall mean the Great Eastern Railway Company. 
 
 "Servant" shall mean any servant of the Company, whether em- 
 ployed by them solely or jointly with any other Railway Company, 
 if appointed by the Company. 
 
 "Dependants" shall mean such members of the member's family 
 as were wholly or in part dependent upon the earnings of the member 
 at the time of his death or would but for the incapacity due to the 
 accident have been so dependent and, where the member being the 
 parent or grandparent of an illegitimate child leaves such a child 
 so dependent upon his earnings or being an illegitimate child leaves 
 a parent or grandparent so dependent upon his earnings, shall include 
 such an illegitimate child and parent and grandparent respectively. 
 
 "Member of a Family" shall mean wife or husband, father, mother, 
 grandfather, grandmother, step-father, step-mother, son, daughter, 
 grandson, granddaughter, step-son, step-daughter, brother, sister, half- 
 brother, half-sister. 
 
 "Allowance" shall mean and include every payment provided by 
 the Scheme to be made to any member of the Fund or his repre- 
 sentatives or dependants. 
 
 "The Committee" shall mean the committee for the time being 
 acting in the management of the Fund. 
 
 "Elective Member of the Committee" shall mean any one of the 
 five servants of the Company being members of the Fund, elected as 
 in the Scheme mentioned. 
 
362 ACCIDENT PREVENTION AND RELIEF 
 
 "Month" shall mean calendar month. 
 
 "Secretary'' shall mean the secretary for the time being of the 
 Fund. 
 
 Words importing the singular number shall include the plural 
 number and vice versa, and words importing the masculine gender 
 shall include the feminine gender. • 
 
 OFFICE OF THE FUND 
 
 2. The office of the Fund shall be at Liverpool Street Station or 
 at such other place as may from time to time be substituted there- 
 for by the committee. 
 
 MEMBERS 
 
 3. Every servant who desires to become a member shall testify 
 his desire by signing and forwarding to the secretary an application 
 In the form printed at the foot of these rules or in such other manner 
 as the committee may from time to time authorize or require. Upon 
 so testifying his desire the servant shall become a member and his 
 contribution of one penny per week to the Fund to be deducted from 
 his wages according to the Scheme shall immediately commence. 
 Every person becoming a member shall be entitled to receive free 
 of charge a copy of the Scheme and of these rules or other, the rules of 
 the Fund for the time being in force. 
 
 MANAGEMENT 
 
 4. The Fund shall be managed by the committee composed as 
 mentioned in the Scheme. 
 
 5. Every elective member of the committee (hereinbefore de- 
 fined) shall cease to hold office at the end of two years from the 
 date of his election or on his sooner ceasing to be one of the body 
 whether delegates or committee by which he is elected but shall 
 be eligible for re-election. On the retirement or in case of the death, 
 
SCHEME OF GREAT EASTERN RAILWAY 363 
 
 resignation or incapacity of any elective member of the committee, 
 the body by which he is elected shall elect one of its members in 
 his place but the person so elected to fill a vacancy caused by death, 
 voluntary resignation or incapacity shall hold office only so long 
 as the person in whose place he is appointed woiild have continued 
 to hold it. A retiring elective member of the committee shall be 
 eligible for re-election. 
 
 6. The continuing members for the time being of the committee 
 may act notwithstanding any casual vacancy in their body and not- 
 withstanding any omission to fill up a vacancy caused by the retire- 
 ment, death, resignation or incapacity of an elective member. 
 
 7. The chairman for the time being of the Company and in his 
 absence the deputy chairman and in the absence of both, one of the 
 members of the committee present to be chosen by those present, 
 shall act as chairman of each or any meeting of the committee. 
 
 8. The committee may meet as they think fit. Six members shall 
 be a quorum and questions arising at any meeting shall be de- 
 cided by a majority of the members of the committee present. If 
 the chairman of the Company be chairman of the meeting he shall 
 not vote unless there be an equality of votes of the other members 
 present, in which case he shall have a casting vote. Any other per- 
 son who may be chairman of the meeting may vote and in case of 
 an equality of votes he shall also have a second or casting vote. 
 Any three members of the committee of whom one at least shall be a 
 non-elective member may at any time call a meeting of the committee. 
 
 POWERS OF THE COMMITTEE 
 
 9. Before payment of any allowance the committee shall be en- 
 titled to call for and be furnished with such information and par- 
 ticulars as in their discretion they may think necessary to establish 
 the validity of the claim. 
 
364 ACCIDENT PREVENTION AND RELIEF 
 
 10. Notice in writing of any accident shall be given as soon as 
 practicable after the happening thereof and, if reasonably possible, 
 through the station master, foreman, or person in authority under 
 whom the member immediately works, to the secretary. 
 
 Any such notice and any claim for compensation made as a result 
 of the accident must comply with section 2 of the •Workmen's Com- 
 pensation Act 1906, and will be dealt with by the committee in accord- 
 ance with that section. 
 
 11. When notice has been given of an injury to a member, the 
 member shall, if and so often as may be required by the committee, 
 submit himself for examination by a duly qualified medical practi- 
 tioner as provided in the Scheme. 
 
 CUSTODY OF MONEYS OF THE FUND 
 
 12. The moneys of the Fund shall remain in the hands of the Com- 
 pany for the purposes of the Fund and the Company shall be ac- 
 countable to the Fund for the same. 
 
 ACCOUNTS 
 
 13. Accounts of the Fund shall be kept by the secretary and shall 
 be open to the Inspection of the members at all reasonable times and 
 the Company shall cause such accounts to be audited up to the 
 30th day of June, 1909, and up to 30th day of June in each succeed- 
 ing year by their chief accountant for the time being and a copy 
 of the accounts as so audited shall be sent to every member accom- 
 panied by a copy of any such report upon the Fund as the committee 
 may consider necessary. 
 
 ALTERATION OF RULES 
 
 14. The committee shall have power from time to time to alter, 
 vary, modify, revoke, rescind or add to these rules or other, the rules 
 
SCHEME OF GREAT EASTERN RAILWAY 365 
 
 for the time being of the Fund, but no alteration shall be made which 
 is inconsistent with or would render the rules inconsistent with the 
 Scheme. 
 
 15. These rules shall come in operation as on and from the 1st day 
 of July, 1909. 
 
 16. If and so far as any of these rules is inconsistent with the 
 Scheme such rule shall be of no force or effect. 
 
 Form of Application for MembersTiip 
 
 GREAT EASTERN RAILWAY ACGIE^NT FUND 
 
 Department 
 
 Station 
 
 Date 
 
 To the Great Eastern Railway Company, 
 
 I desire to become a member of the Great Eastern Railway Acci- 
 dent Fund upon the terms of the Scheme certified by the Registrar 
 of Friendly Societies and I authorize the deduction from my wages 
 of one penny per week as my contribution to the said Fund and I 
 agree with the Great Eastern Railway Company as follows: — 
 
 (a) That the provisions of the said Scheme shall be substituted 
 for the provisions of the Workmen's Compensation Act 1906 
 a^ regards any claims which I or any persons claiming under 
 me or my dependants may have for compensation under the 
 said Act. 
 
 (b) That in any case in which I,' or persons claiming under me, 
 make any claim under or by reason of the provisions of the 
 Employers' Liability Act 1880 or any Act or Acts amending 
 the same or at common law, I will accept the contribution 
 agreed to be made by the Railway Company under the said 
 Scheme and any compensation or provision which may be 
 allotted to me under the said Scheme in satisfaction of any 
 
366 ACCIDENT PREVENTION AND RELIEF 
 
 such claim so made by me or persons claiming under me as 
 aforesaid. 
 
 Signature 
 
 Check No 
 
 Occupation 
 
 Residence § 
 
 Witness to Signature — 
 
 I agree on behalf of the Great Eastern Railway Company. 
 
 Signed 
 
 Station Master, Foreman, or person in authority, under whom the 
 proposed member immediately works. 
 
 REPORT OF THE MANAGING COMMITTEE AND STATEMENT OF 
 
 ACCOUNTS 
 
 To 30th June, 1910 
 
 The Committee herewith submit to the Members of the Fund a 
 statement of the Accounts of the Fund for twelve months ending 30th 
 June, 1910. 
 
 During the year, the total number of claims was 3,164, including 
 
 16 in regard to accidents that terminated fatally. 
 
 The allowance due in respect of the 16 fatal accidents was paid as 
 follows: 
 In 11 cases to persons wholly dependent £2,016 12 7 
 
 In 4 cases to persons partially dependent 102 
 
 In 1 case to persons non-dependent 10 
 
 There was also paid £56 9s. lOd. by weekly allowances. 
 
 The number of members on 30th June, 1910, was 29,152. 
 
 By order of the Committee, G. F. Thurston, Secretary. 
 
SCHEME OF GREAT EASTERN RAILWAY 367 
 
 GREAT EASTERN RAILWAY ACCIDENT FUND 
 Statement of Accounts Year ending 30th June, 1910 
 
 RECEIPTS £ s. d. 
 
 Balance 30th June, 1909 2,451 10 1 
 
 Contributions by Members 6,109 6 
 
 Contributions by Company on account of Fatal Accidents 2,185 2 5 
 Contributions by Company on account of total 
 
 incapacity 7,554 8 
 
 Contributions by Company on account of partial in- 
 capacity and commutations 225 16 7 
 
 £18,525 17 7 
 
 DISBURSEMENTS 
 
 Amounts paid: — £ s, d. 
 
 On account of Weekly Allowance 11,899 15 11 
 
 On account of Fatal Accidents 2,185 2 5 
 
 On account of partial incapacity and commutations 225 16 7 
 
 On account one-third of expenses of management 380 11 
 
 By Balance 3,835 1 9 
 
 £18,525 17 7 
 
 16th July, 1910. Audited and found correct, 
 
 A. E. DOLDEN. 
 
Ill 
 
 STATEMENTS MADE BEFORE DEPARTMENTAL COMMITTEE 
 
 1904, RESPECTING THE EFFECT OF THE ACT OF 1897, 
 
 UPON THE EMPLOYMENT OF ELDERLY 
 
 AND DEFECTIVE WORKMEN 
 
 Mr. Stevenson, Secretary of the United Builders' Labourers' Union, 
 said, in answer to the question: 
 
 2612. You say here that the Act has operated unfavorably towards 
 the old and weak? 
 
 Yes. Not only do I experience it in my own society, but as a 
 member of a Board of Guardians as well, I am continually in contact 
 with men who unfortunately have to seek the refuge of the "house." 
 On inquiry being made, especially in certain work, it has been found 
 that questions have been put to them with regard to their physical 
 condition, especially since the House of Lords has given a decision 
 that ordinary physical disability is not a bar to a man getting com- 
 pensation, even though he may meet with an injury when it is known 
 at the time that he is suffering from some disability. I find in those 
 cases that the inquiries as to the physical conditions of the men ar$ 
 beginning to get more stringent. 
 
 Mr. Wilson, M. P., Secretary of the Durham Miners' Association, 
 sums up his views on this important question thus: 
 
 8546. I have no hesitation in saying that, this to me is one of 
 the greatest dangers. It is an indirect influence that cannot be mea- 
 sured, because practical men will tell you, and I have no hesitation 
 in saying it, that a very large number of these cases discharged 
 would not have been discharged, had it not been for the Compensation 
 Act. Now, in these times the Workmen's Compensation Act is begin- 
 ning to tell, owing to our getting into bad times. 
 
370 ACCIDENT PREVENTION AND RELIEF 
 
 Mb. Cummings, of the Boiler Makers' and Iron and Steel Ship- 
 builders' Society, says: 
 
 But the great difficulty we have had to face just now in our trade 
 is the disinclination, and in some cases the absolute refusal on the 
 part of some insurance companies to accept any risk under any con- 
 ditions whatever of men who have been maimed with the loss of a 
 leg, arm, or eye. I am glad to say that the Iro« Trade Employers' 
 Insurance Company do not act as other insurance companies have 
 done in this matter. It is a serious matter to us, because we have 
 got many hundred one-eyed men. There are a tremendous lot of one- 
 eyed men in our trade, as some portions of the work are exceedingly 
 dangerous to the eyes. That has caused a discharge in certain direc- 
 tions of a quantity of one-eyed men. I came across one in Scotland last 
 week who had been twenty-five years working for his employer with 
 one eye, and now has had to be discharged, although he is just as 
 fit now to do the work as ever. Where there is no sympathetic affec- 
 tion setting in from the loss of one eye it has been proved that a man 
 is able to earn just as much at piece work — a system general with 
 us — as he did before. 
 
 I should like to say that the injustice of the matter is marked, 
 seeing that in a case in Scotland five one-eyed men were subpoenaed 
 to give evidence stating their ability to work at their trade in order to 
 prevent another man obtaining full compensation who had lost an 
 eye. Now these man are being discharged. One employer I saw at 
 Tyneside, who had insured with an insurance company which re- 
 fused to accept any such risk, deplored the fact to me; he told me that 
 even if he paid cent per cent they the (insurance company) would 
 not accept any risk. 
 
 This is a copy of the exact clause: "It is hereby understood and 
 agreed that this policy does not cover the risk of accident to six 
 employees who are permanently disabled through the loss of an eye, 
 and one employe who is permanently disabled through the loss of a 
 leg." Five out of those six one-eyed men proved to be our people; 
 among all the other trades there was only one who had lost an eye 
 in that employment. 
 
EFFECT OF ACT OF 1897 371 
 
 So Mk. Binns, General Manager of the Midland Colliery Owners' 
 Mutual Indemnity Company: 
 
 With regard to the employment of maimed persons, the Act has 
 had great influence on this class of employment, because employers 
 cannot afford the risk of setting on men who might, by some slight 
 accident, become permanently incapacitated. A workman employed 
 by one member of the association, within a few hours of the Act 
 coming into force, had an eye destroyed. It was then found, for 
 the first time, that his other eye had been, for some time, blind, and 
 the man was thus incapacitated for life. Employers cannot afford 
 the risk of taking on maimed men whom they might otherwise be very 
 willing to take on. 
 
 Mr. Taylor, Secretary of the Cotton Trade Insurance Association, 
 says: 
 
 It is only since July of this year that we have begun to take 
 steps to dispense with people who are infirm or who have ailments. 
 I gave instructions to stop a man who was only fifty years of age last 
 week who was suffering from varicose veins in his legs. If this man 
 by some means or other knocked a leg against some machinery in his 
 mill he might easily bleed to death, and we should be liable for it. 
 We are bound to stop these people. We have not taken any notice 
 of it for the first few years, but now we are bound to take steps to 
 stop it. During the next few years, if they are allowed to contract 
 out, there will be a good many aged persons put out of work, and 
 those who have any ailment or who are cripples. I have a man in my 
 mind now who is blind of one eye — an overlooker in a mill. We shall 
 certainly have to dispense with him before very long. I shall give 
 instructions to dispense with him in the next week or two, and any- 
 one I find of that description. There are a great many of these cases. 
 
 Mr. Copley, Secretary of the National Amalgamated Union of En- 
 glnemen of Great Britain, mentions a case where a shunter had his 
 right leg taken off, and, after having been supplied with a cork leg, 
 his employers offered him employment as locomotive driver at higher 
 
372 ACCIDENT PREVENTION AND RELIEF 
 
 wages than he had before, and he was employed in this capacity, being 
 
 quite capable of doing the work, for two years. 
 
 Unfortunately the insurance company step in, and they refuse to 
 be liable any longer for any compensation if he is kept in their em- 
 ployment. The firm, of course, approached him with the idea that 
 he should contract out of the Act. He sought advice from me, and 
 I said, according as I understood the Act, an individual person could 
 not contract out of it, but the foreman told him that he could not go 
 on in their employment any longer unless he did contract out of the 
 Act. He got fourteen days' notice, and now he is practically on the 
 street — with one leg and out of employment. At the time that he 
 settled for commutation he got £150. Most of this was spent to build 
 up his constitution, to get him right, and to buy him a cork leg in 
 order to walk more easily. And now he is on the street with no 
 income from anywhere. 
 
IV 
 
 STATEMENT PREPARED BY MR. S. R. GLADWELL, SECRETARY 
 THE IRON TRADES EMPLOYERS' INSURANCE AS- 
 SOCIATION, LTD., OUTLINING PURPOSE AND 
 OPERATION OF THAT ASSOCIATION 
 
 The Iron Trades Employers' Imurance Association, Ltd., is a mu- 
 tual association of engineers and shipbuilders who are members of 
 the Engineering and Shipbuilding Employers' Federation, and the Asso- 
 ciation is not allowed to take as members any firm which is not a 
 member of such Federation. The Engineering and Shipbuilding Em- 
 ployers' Federation is an association of employers formed purely for 
 the purpose of defense against workmen's unions. The aim of the 
 Insurance Association, which is affiliated with the Federation, is to 
 manage the workmen's compensation claims of the employers at 
 the lowest possible cost consonant with humane and fair dealing with 
 the workmen. It is by far the largest mutual society in this country 
 undertaking employers' liability insurance, and its experience affords 
 an exceptional means of estimating the risk with regard to an im- 
 portant class of trades. The premiums received during 1909 amounted 
 to £145,000, and the claims were £115,000, or approximately 80 per 
 cent of the premiums, while expenses were £14,000, or about 10 per 
 cent of the premiums. The surplus on trading account for the year 
 was nearly £15,000, or more than 10 per cent of the premiums. The 
 small percentage of premiums absorbed in expenses is always a 
 noticeable feature of the accounts and the members of the associa- 
 tion, therefore, obtain protection as nearly at cost price as is prac- 
 ticable. Their experience during the last seven years is given in table 
 
 on next page: 
 
 373 
 
3. Losses. 
 
 Expenses. 
 
 Percentage 
 of Profit or 
 
 £ 
 
 £ 
 
 Loss. 
 
 62,856 
 
 9,580 
 
 + 0.6 
 
 73,183 
 
 9,955 
 
 — 7.3 
 
 83,003 
 
 11,176 
 
 — 5.0 
 
 121,422 
 
 11,079 
 
 —13.8 
 
 111,607 
 
 11,576 
 
 _ L3 
 
 210,996 
 
 20,i07 
 
 -f 5.6 
 
 115,439 
 
 13,842 
 
 +10.1 
 
 £778,506 
 
 £87,315 
 
 + 0.1 
 
 374 ACCIDENT PREVENTION AND RELIEF 
 
 Premiums. 
 Received 
 £ 
 
 1903 72,834 
 
 1904 77,382 
 
 1905 89,574 
 
 1906 116,376 
 
 1907 121,544 
 
 1908 (18 mos.) 244,925 
 
 1909 144,045 
 
 Totals £866,680 
 
 Totals, Losses and Expenses, £865,821 
 
 It will be observed that premiums and claims with working ex- 
 penses practically balance. It should also be noted that a new Com- 
 pensation Act came into force in July, 1907, considerably increasing 
 the liability of employers and, consequently, the premiums. In that 
 year the association issued provisional and experimental policies for 
 six months, subsequently extending them for a further twelve months, 
 so that the premiums received (£244,925) represent 18 months' work. 
 How is this result effected? 
 
 Constant supervision of claims is exercised by inspectors who keep 
 in touch with injured workmen. Continual efforts are made to im- 
 prove the employers' risk by the issue of rules and regulations, guard 
 notices, and various suggestions, all relating to the prevention of acci- 
 dents. Great attention is paid to the provision of proper first aid 
 treatment and periodically the doctors of the Association visit the 
 works of each firm in order to see whether the first aid arrange- 
 ments are in good order. The aim of the Association is not so much 
 to have a small hospital in the works as to have at one or more 
 points (depending on the size of the establishment) the simplest 
 possible form of bandages, lotions, etc., which are perfectly aseptic 
 and are kept in places to which dirt cannot have access. Ambulance 
 classes are also encouraged in their works, and the necessity of 
 perfect surgical cleanliness is insisted on at every possible oppor- 
 tunity. The antiquated method of obtaining merely a sick club doc- 
 tor's report every month or two is slowly being abandoned, and the 
 
IRON TRADE INSURANCE ASSOCIATION 375 
 
 newer and better practice of procuring the best possible medical treat- 
 ment for the injured workman is gradually being adopted, the view 
 being that if £100 must be spent it is better to give £75 to the 
 doctor to thoroughly repair the human machine and make it fit for 
 work again, giving the man £25 in weekly payments while he is being 
 repaired rather than £90 to the workman as some miserable solatium 
 for a permanent injury and £10 to the doctor for doing work which 
 lack of time and opportunity prevented him doing effectively. In 
 some districts a doctor is employed whose sole business it is to ex- 
 amine and treat every injured workman, the result being that although 
 a larger number of claims are called into existence by the workman's 
 attention being called, by the medical treatment, to the claim he has 
 under the Workmen's Compensation Act, yet the time the workman 
 is off work is so reduced that the cost per claim necessarily shows a 
 considerable reduction. 
 
 Among the many thousands of cases dealt with every year by the 
 Association there are a great number which are not bona fide and in 
 which the workmen are undoubtedly malingerers and are exploiting 
 the employers. When the inspectors of the Association come across 
 such cases, they report to the head office through the branch office 
 and, after an impartial consideration of all the circumstances of the 
 case, if it is found that the inspector's report is borne out by further 
 information, the name of the man is put upon a list and all the 
 members of the Association are informed that such workman will not 
 be insured under the policy. Naturally, the member looks to it that 
 the man is not allowed to be taken on in his works and a gradual 
 and very effective result of such a list of workmen is that those 
 who are irreclaimably bad are kept permanently out of the shops 
 of the members of the Association and a better tone is gradually being 
 Introduced among the other workmen, with excellent effects not only 
 on the cost of the compensation, but on the morale of the men. 
 
 EiVery employer pays a standard rate of premium per £100 of 
 wages that prevails in his class of manufacture, but if, after a short 
 
376 ACCIDENT PREVENTION AND RELIEF 
 
 period it is found that his cost is lower than the average cost of the 
 class, he is entitled to receive consideration by means of a lower rate. 
 It does not always follow, however, that the mere fact that his cost is 
 lower than the average class cost is sufficient to qualify for a re- 
 duced rate unless it can be shown that the normal cost has been 
 reduced by the member's own efforts. Every fatal ^ase is considered 
 to be a proper load of the class and where a permanent disablement 
 claim costs more than £50, the first £50 is debited to the mem- 
 ber's record and the whole of the excess is debited to the class. 
 Every member of the class, therefore, bears the cost of his share of 
 the .fatal and permanent disablement cases, but each firm bears its 
 own cost as regards all cases costing under £50 per case. If, there- 
 fore, an employer, by more careful guarding of machinery, but better 
 supervision of the workmen, by the re-arrangement of the machinery, 
 by a better system of lighting, or by more complete methods of carry- 
 ing, reduces the number and seriousness of accidents in the course 
 of the year, he will have considerably reduced his normal cost and 
 will also, in consequence, be entitled to a reduced rate. The extra 
 expense involved during the first year in effecting these improvements 
 may be considerable and even cost more than the compensation other- 
 wise payable, but the high class employer realizes that it is best in 
 the long run, even looking to his own material interests alone, to 
 incur this preliminary expense. 
 
 The claims inspectors of the Association have specially favourable 
 opportunities of seeing what other firms are doing with regard to pre- 
 vention of accidents and they carry from one works to another the 
 latest current ideas. They are enabled to draw the attention of firms 
 to new and improved arrangements which might prevent accidents, 
 but it is, of course, for the employer to say whether, after balancing 
 the advantages and disadvantages, the suggested improvement will 
 interfere with the efficiency of the machine or limit the output to 
 Buch an extent as to show no corresponding advantage in the direc- 
 tion of prevention of suffering. 
 
CANADIAN INDUSTRIAL ACCIDENTS 
 
 377 
 
 Department of Labour, Canada, 
 Statistical Tables. X. A. R., No. 39. 
 
 STATISTICAL TABLE OF FATAL INDUSTRIAL ACCIDENTS IN 
 CANADA DURING THE CALENDAR YEAR 1909 
 
 Teade OB Industey 
 
 NuMBEB OF Accidents Accobding to Months 
 
 Agriculture 
 
 Fishing and Hunting 
 
 Lumbering 
 
 Mining 
 
 Building trades 
 
 Metal trades 
 
 Woodworking trades 
 
 Printing trades 
 
 Clothing trades 
 
 Textile trades , 
 
 Food and tobacco prepar- 
 ation 
 
 Leather trades 
 
 Bailway service 
 
 Navigation ... 
 
 General transport 
 
 Civic employes 
 
 Miscellaneous trades 
 
 Unskilled labor 
 
 Total. 
 
 Jan. Feb. Mar. Apr. May June July lug. Sept. Oct. Not. Deo. Total 
 
 12 
 
 16 
 
 71 80 79 70 97 130 105 129 94 152 145 127 1,279 
 
 256 
 34 
 130 
 160 
 38 
 77 
 11 
 
 i 
 
 3 
 
 95 
 50 
 12 
 54 
 64 
 
 Department of Labour, Canada, 
 Statistical Tables. X. A. R., No. 40. 
 
 STATISTICAL TABLE OF NON-FATAL INDUSTRIAL ACCIDENTS 
 IN CANADA DURING THE CALENDAR YEAR 1909 
 
 Teade oe Industey 
 
 NuMBEB OP Accidents Accoeding to Months 
 
 
 Jan. 
 36 
 
 ii 
 
 4 
 11 
 20 
 11 
 
 i 
 
 1 
 
 5 
 
 1 
 
 20 
 
 5 
 
 9 
 
 8 
 
 11 
 
 10 
 
 Feb. 
 24 
 
 is 
 
 7 
 5 
 30 
 14 
 6 
 1 
 3 
 
 8 
 
 17 
 3 
 7 
 3 
 9 
 5 
 
 Mar. 
 24 
 
 19 
 4 
 
 8 
 40 
 9 
 5 
 2 
 1 
 
 14 
 
 1 
 
 23 
 
 1 
 
 12 
 
 11 
 
 11 
 
 9 
 
 Apr. 
 
 24 
 
 5 
 
 11 
 
 8 
 
 13 
 
 43 
 
 13 
 
 4 
 
 4 
 
 2 
 
 2 
 
 19 
 
 5 
 
 17 
 
 1 
 8 
 7 
 
 «.7 
 
 June 
 
 July 
 
 A-. 
 
 Sept. 
 
 Oct. 
 
 Not. 
 
 Dee. 
 
 Total 
 
 Agriculture 
 
 22 
 
 19 
 3 
 
 32 
 
 27 
 
 9 
 
 3 
 2 
 
 1 
 
 19 
 13 
 
 18 
 4 
 7 
 6 
 
 27 
 
 26 
 18 
 39 
 39 
 28 
 1 
 
 2 
 
 9 
 
 26 
 32 
 19 
 
 8 
 14 
 
 4 
 
 33 
 
 13 
 
 23 
 
 24 
 
 64 
 
 10 
 
 3 
 
 1 
 
 4 
 
 9 
 
 1 
 25 
 
 8 
 19 
 
 1 
 10 
 10 
 
 29 
 
 16 
 
 18 
 
 26 
 
 36 
 
 15 
 
 4 
 
 2 
 
 1 
 
 5 
 
 22 
 3 
 
 25 
 7 
 
 16 
 29 
 
 52 
 
 9 
 
 13 
 
 24 
 
 33 
 
 10 
 
 2 
 
 1 
 
 2 
 
 8 
 
 3 
 11 
 
 2 
 17 
 
 3 
 23 
 12 
 
 40 
 
 2 
 
 9 
 
 12 
 
 23 
 
 47 
 
 16 
 
 4 
 
 2 
 
 5 
 
 7 
 1 
 44 
 5 
 15 
 19 
 27 
 15 
 
 32 
 
 18 
 
 23 
 
 25 
 
 53 
 
 8 
 
 5 
 
 1 
 
 5 
 
 10 
 
 38 
 11 
 19 
 13 
 12 
 6 
 
 21 
 
 12 
 
 14 
 
 15 
 
 50 
 
 15 
 
 1 
 
 2 
 
 5 
 
 8 
 
 29 
 3 
 
 16 
 
 13 
 4 
 
 10 
 
 374 
 
 Fishing and Hunting 
 
 Lumbering 
 
 Mining .' 
 
 7 
 181 
 147 
 
 Building trades 
 
 245 
 
 Metal trades 
 
 482 
 
 Woodworking trades 
 
 Printing trades 
 
 Clothing trades 
 
 158 
 35 
 16 
 
 Textile trades .... 
 
 35 
 
 Food and Tobacco prepar- 
 ation . 
 
 86 
 
 Leather trades 
 
 9 
 
 Kailway service 
 
 293 
 
 Navigation 
 
 General transport 
 
 Civic employes. 
 
 91 
 
 193 
 
 91 
 
 Miscellaneous trades 
 
 Unskilled labor 
 
 152 
 123 
 
 
 
 Total ... . 
 
 164 
 
 160 
 
 194 
 
 186 
 
 185 
 
 292 
 
 258 
 
 *>64 
 
 225 
 
 oqs 
 
 979 
 
 218 
 
 2.718 
 
 
 
 
 
 
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APPENDIX 
 
 PART THREE 
 
 Voluntary Relief Associations in tLe United States — A Descrip- 
 tive Account of tlie Practical Working of tlie Systems 
 Adopted Ly tlie International Harvester Company, 
 Ckeney Brotkers, and tLe General 
 Electric Company 
 
APPENDIX 
 
 PART THREE 
 
 VOLUNTARY RELIEF ASSOCIATIONS 
 
 The effort of the National Association of Manufacturers to fur- National Relief 
 
 „ . . , , , System Will 
 
 ther in the United States, a national system of injured workers re- ^^^^ interfere 
 
 lief, must not, and will not, interfere with the voluntary action of With individual 
 
 Employers' 
 employers. Last year's inquiry brought out the fact that 17 per cent Action 
 
 of the members operate some sort of voluntary system of workers' 
 
 relief in their establishments. This percentage is increasing rapidly 
 
 and voluntary action is by no means restricted to members of the 
 
 National Association of Manufacturers. Secretary of Commerce and 
 
 Labor, the Hon. Charles Nagel, spoke understandingly on this subject 
 
 during a recent address in Chicago when he said: 
 
 "At the present time legislation is endeavoring to formulate 
 
 a rule more in keeping with the modern conception of the 
 
 true relation between the employer and employe, and it may be 
 
 Legislation 
 justly said that these changes, wrought in part by the courts, planned 
 
 and in part by the legislature, are in line with the standards ^.^^^ ^^L' 
 
 bigntea Jiim- 
 
 which the most far-sighted proprietors have quietly adopted, ployers' Ideas 
 * * * Here, as everywhere, our attention is called to the 
 hardships as manifested in endless and costly litigation, and 
 we are not unmindful of instances in which proprietors of their 
 own accord have waived the technical rights of the law, and 
 
 381 
 
382 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Some 
 
 Employers 
 Willing to do 
 More than 
 Law Demands 
 
 have by their own consent shaped new rules and customs afford- 
 ing a larger measure of justice and equity to their employes. 
 It would be an easy matter to instance large concerns in this 
 country which for many years have seldom appeared in court 
 as defendants in damage suits. These concerns, actuated, per- 
 haps, by motives of fairness and wisdom, perhaps in a measure 
 by considerations of economy, have broadly assumed that every 
 accident and every injury upon their premises create a pre- 
 sumption against them, and that in consequence it is for them 
 to make compensation broader, more generous, more adequate 
 and more prompt than the letter of the law seems to demand." 
 
 A few concrete statements, describing the systems in operation 
 In the establishments of some of our members, are appropriate here 
 and the courtesy of the International Harvester Company, Cheney 
 Brothers, and the General Electric Company, enables us to place the 
 following valuable statements before our readers. 
 
VOLUNTARY RELIEF IN THE UNITED STATES 385 
 
 WORKERS' RELIEF AND PENSION SYSTEM OF THE 
 INTERNATIONAL HARVESTER G MPANY 
 
 I 
 
 By G. A. RANNEY 
 
 The International Harvester Company was the first corporation in pij.g^ Corpora- 
 
 the United States to announce and put into effect plans for the com- H^^ *^ ^^^J?\. , 
 
 Voluntary Relief 
 
 plete protection of its employes. Other large employers of labor, ^^^^ 
 especially the railroads, preceded the International Harvester Company 
 with pension systems and benefit associations, but the latter Company 
 was first to voluntarily assume compensation for industrial accidents. 
 
 Their activities along these lines are divided into three heads, 
 namely, the Industrial Accident Department, the Employes' Benefit 
 Association and the Pension System, and a short description of each 
 follows: 
 
 It is well to bear in mind that these plans apply to all of the Com- 
 panies associated with the International Harvester Company and 
 cover a wide field of industrial activities. 
 
 INDUSTRIAL ACCIDENT DEPARTMENT 
 
 In the words of the Company — 
 
 "The purpose of this plan is to insure to employes at the Prompt 
 
 Definite and 
 works, twine, steel and lumber mills, and on the railroads, Adequate Com- 
 
 prompt, definite and adequate compensation for injuries result- pensation 
 ing from accidents occurring to them while engaged in the 
 performance of their duties, and also to provide compensation 
 to the widow, children and relatives who may be dependent 
 upon any employe whose death results from such accident. 
 
 "The benefits provided for by this plan will be paid regard- 
 less of legal liability on the part of the Company and no injured 
 employe will require legal assistance to collect the money to 
 which he is entitled." 
 
Benefits 
 Increase as 
 Disability Con- 
 tinues 
 
 Amounts 
 Paid Vary 
 According to 
 Extent of 
 Injuries 
 
 386 ACCIDENT PREVENTION AND RELIEF 
 
 The Company, without any contribution from the employes, pays 
 the following compensation for personal injuries caused by accidents 
 arising out of and in the course of employment: 
 
 1. Disability Benefits. 
 
 (a.) During the first 30 days of disability, one-fourth of the 
 employe's average daily pay. • 
 
 (b.) After the first 30 days, half pay during the continu- 
 ance of disability, but not for more than 104 weeks from the 
 date of accident. 
 
 (c.) These disability benefits are payable every two weeks 
 but in no case exceed $20 a week. 
 
 (d.) An employe who has received benefits for 104 weeks and 
 who is then totally disabled, shall, so long as his total disability 
 continues, be paid an annual compensation equal to 8 per cent of 
 the death benefit which would have been payable had the accident 
 resulted in death; such compensation, however, shall not be 
 less than $10 per month, and shall be payable monthly. 
 
 (e.) Disability benefits are based upon the average daily wages 
 received during the 60 days worked preceding the accident; 
 if employe worked less than 60 days, then on the average daily 
 wages received during such period. 
 
 2. Special Benefits. 
 
 (a.) If the injury causes the immediate severing of, or in 
 the opinion of the medical examiner or works' physician, 
 necessitates the amputation of a hand or foot at or above the 
 wrist or ankle, one and one-half years' wages, but in no event 
 less than $500 nor more than $2,000. 
 
 (b.) In case of the loss of both hands or both feet, or one 
 hand and one foot, four years' average wages, but not less 
 than $2,000. 
 
 (c.) In the case of the total and irrecoverable loss of the 
 sight of one eye, three-fourths of the average yearly wages. 
 
VOLUNTAKY RELIEF IN THE UNITED STATES 387 
 
 (d) In the case of the total and irrecoverable loss of the 
 
 sight of both eyes, four years' average wages, but not less 
 
 than $2,000. 
 
 3. Death Benefits. 
 
 If the employe leaves a widow, child or children, or other relatives 
 
 dependent upon his earnings for their support, benefits shall be paid 
 
 as follows: 
 
 (a.) If death results from accident before the expiration of 
 
 16 weeks from the date thereof, three years' average wages, 
 
 but not less than $1,500 nor more than $4,000. 
 
 (b.) If death results from accident between the end of the Suddenness of 
 
 Death 
 sixteenth week and the end of the fifty-second week after the Determines 
 
 ,-. ^ j_ x-i- Amounts paid 
 
 date thereof, two years average wages (but not more than ^^ Dependents 
 $3,000), less all disability benefits paid. 
 
 (c.) If the employe leaves no widow, children or other rela- 
 tives dependent upon him for their support, then reasonable 
 hospital and medical expenses, and a further sum for funeral 
 expenses, not less than $75 nor more than $100. 
 
 (d.) No death benefits shall be paid unless death results 
 within 52 weeks from the date of the accident, nor unless 
 a written claim shall be filed by the executor, or administrator 
 of the deceased employe within three months after the em- 
 ploye's death. 
 The disability benefits for the first 30 days of disability are in- 
 creased from one-fourth wages to one-half wages, provided the emr 
 ployes contribute as follows: 
 
 Employes earning $50 or less per month, six cents per month; Benefits in- 
 
 Employes earning $50 and not more than $100, eight cents creased for 
 
 Employes 
 
 per month; and Contributing 
 
 to Fund 
 Employes earning more than $100 per month, ten cents per 
 
 month. 
 
 The Company is committed to the principle that the employe should 
 
 contribute something to the benefit fund, the reason being that 
 
Co-operation 
 of Employes 
 Desired 
 
 No Compensa- 
 tion for Acci- 
 dents Caused 
 by Workers' 
 Misconduct 
 
 Injured Workers 
 Must Follow 
 Directions of 
 Company's 
 Physician 
 
 388 ACCIDENT PREVENTION AND RELIEF 
 
 the Company earnestly desires the co-operation of its employes in 
 the payment of benefits for the first 30 days of disability, because 
 it wishes every employe to assist in the prevention of accidents. The 
 Company has expended large sums in safeguarding machinery in an 
 effort to protect its employes, but without the active co-operation of 
 the employes many accidents cannot be avoided. iJnder this plan 
 the Company and the employes equally divide the payment of benefits 
 during the first 30 days of disability, and thus every employe 
 becomes financially interested in guarding against accidents and in 
 seeing that his fellow workmen are equally careful. It is the hope 
 of the Company that this mutual interest will lead to active co- 
 operation on the part of the employes and that thereby accidents 
 will be reduced to a minimum." 
 
 The Company does not pay compensation if accidents, resulting in 
 injury or death, result from or are caused directly or indirectly, wholly 
 or in part, by the intoxication, or partial intoxication of the employe, 
 or by his failure to use the safety appliances provided by the Company, 
 or by his own gross or willful misconduct. 
 
 The commencing of any legal action whatsoever against any of 
 the companies associated in the Industrial Accident Department, on 
 account of such injury by the employe, or, in the event of his death, 
 by his executor, administrator or personal representative, bars any 
 right of compensation under the plan. 
 
 An injured employe, to secure benefits, must immediately give 
 notice or cause notice to be given through his timekeeper of the 
 time and place of the accident, the nature and cause of the injury, 
 and of his residence address; and must submit immediately to a 
 physical examination by the medical examiner or works' physician 
 or other physician designated by the Company, and thereafter strictly 
 follow the directions given by such medical examiner or physician. 
 The payment of benefits cease if the injured employe refuses to fol- 
 low the direction of the medical examiner or other physician. 
 
VOLUNTARY RELIEF IN THE UNITED STATES 389 
 
 The Company maintains medical examiners at its various works, 
 whose duties are to make examination of injured employes and de- 
 cide when employes are disabled and when ahle to work. 
 
 All of the operating expenses of the department are paid by the company Pays 
 
 Operating 
 Company and no part of the contributions from employes is used to Expenses 
 
 pay such expenses. The department is managed by a Board of Man- 
 agement, composed of five members appointed by the Company. This 
 Board has complete control of the department and appoints its em- 
 ployes, medical examiners, etc., etc. 
 
 The International Harvester Company is earnestly striving to re- ^^ ,^. ^ ^^ 
 
 Nothing Left 
 
 duce the number of industrial accidents. All of its equipment is being Undone to 
 
 Prevent Acci- 
 properly safeguarded. Shop lighting, ventilation, sanitation and all dents 
 
 conditions affecting the life and safety of its employes are having 
 constant attention and such conditions are being constantly improved 
 and brought up to a high standard. 
 
 A most interesting pamphlet has been published entitled "Protec- 
 tion Against Injury." This pamphlet contains rules for the foremen 
 and also for the workmen on how to avoid accidents. These rules 
 are grouped by departments, so that an employe, say, in a foundry, 
 does not have to read the whole book. This book also contains pho- 
 tographs picturing the right and wrong way to use safety devices, Pamphlet on 
 
 Accident Pre- 
 
 the object of the pictures being to impress upon the minds of the vention Pub- 
 workmen the necessity for constant vigilance. Some of these pic- Languages 
 tures are shown on pages following. This book on "Protection 
 Against Injury" has been published in ten languages, namely, English, 
 Greek, Russian, Polish, Swedish, Lithuanian, Italian, Bohemian, Ger- 
 man and Hungarian, so there is practically no excuse for any employe 
 who can read to say that he was not advised of how to avoid being 
 injured. 
 
 The International Harvester Company pursues the subject of pro- ^cpj^jg^t Pre- 
 
 tection against injury by an especially appointed man and this work is vention Com- 
 pany's Most 
 
 handled the same as that of other departments and is considered the Important 
 
 Problem Today 
 most important subject that the Company has to contend with today in 
 
 the manufacture of its product. 
 
390 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 FIGURE n9 
 
 Catching iron in foundry. The only correct and safe way for a foundryman 
 
 to catch iron is to cut the stream in towards the furnace. 
 
 The above picture shows the correct way. 
 
 EMPLOYES' BENEFIT ASSOCIATION 
 
 Factory-work- 
 ers Contribute 
 1% Per Cent 
 of Wages to 
 Get Benefits 
 If Injured off 
 Duty 
 
 The object of the Employes' Benefit Association is to create and 
 maintain a fund at the least possible cost, which shall belong to the 
 employes, and from which shall be paid to the members when dis- 
 abled a certain income, and to their families certain definite sums 
 in the event of death. The membership is divided into two classes: 
 
 Class B includes all members employed at the works, twine, .steel 
 and lumber mills, mines, and on the railroads. Members in Class B 
 contribute 1% per cent of the wages received by them. They are en- 
 titled to receive disability benefits for sickness and for accidents re- 
 ceived while oft duty, and their dependents are entitled to death bene- 
 fits from death resulting from the above causes. (Benefits for accidents 
 received while on duty are paid by the Industrial Accident Depart- 
 ment as outlined on page 386.^ 
 
VOLUNTARY RELIEF IN THE UNITED STATES 
 
 391 
 
 FIGURE J20 
 
 Oatching iron in foundry. This foundryman placed his ladle in back of the 
 
 stream and cut the stream away from the furnace. This is always 
 
 dangerous and results in many serious burns to the feet and legs. 
 
 Members of Class A include all other employes, namely, those in other Em- 
 
 ployes Pay 1 % 
 the general office and in the sales and collection departments. These p^^ cent But 
 
 members contribute 1% per cent of their wages or salary, and are en- ^^* Benefits 
 
 Uncondition- 
 
 titled to disability or death benefits due to sickness or to accidents ally 
 either on or off duty. 
 
 The contributions of all members are based on wages which mem- 
 bers earn when working full time. No contributions are made by dis- 
 abled members who are drawing benefits. Members who leave the 
 employ of the Company may contribute for a death benefit only, 
 which contribution amounts to ten cents per month for each one hun- 
 dred dollars of death benefits. No member of the Association is al- 
 lowed to coiitfibute on the basis of a salary in excess of $2,000 per 
 annum. The regulations provide for the following benefits: 
 
 Disability from sickness, one-half wages, except for the first seven 
 days, for a period not longer than 52 weeks. 
 
392 
 
 Disability and 
 Death Benefits 
 Paid 
 
 Physical Ex- 
 imination Re- 
 luired to Join 
 
 ACCIDENT PREVENTION AND RELIEF 
 FIGURE J2J 
 
 ^^^^m ^^^^^H ^^^v • 
 
 Right Wrong 
 
 Foiindrymen should wear the best shoes and pants for safety. 
 
 Kind of pants and shoes for foundrymen to wear; hard cloth (Jean) pants 
 
 and congress shoes protect the legs and feet from burns. 
 
 Disability from accident, one-half wages, beginning with the date 
 of the accident, for a period not longer than 52 weeks. 
 
 Death from sickness, one year's average wages. 
 
 Death from accident, two years' average wages. 
 
 Loss of one foot or one hand, one year's average wages. 
 
 Loss of both hands or both feet or one hand and one foot, two 
 years' average wages. 
 
 Loss of one eye, one-half year's wages. 
 
 Loss of both eyes two years' wages. 
 
 Any employe in the service of the Company on or before Septem- 
 ber 20, 1908, had the privilege of becoming a member of the Asso- 
 ciation without medical examination and regardless of age at any 
 time prior to January 1, 1909. Subsequent to the latter date all 
 applicants for membership have been required to pass a physical ex- 
 amination. Any employe who entered the service of the Company 
 after September 20, 1908, and who was over 45 years of age was 
 
VOLUNTARY RELIEF IN THE UNITED STATES 
 
 393 
 
 FIGURE J22 
 
 Use care in loading trucks. Broken legs and serious injuries may result 
 from careless loading of trucks 
 
 allowed to contribute for the regular disability benefits; tlie j^^ath Benefits 
 
 death benefit, however, being limited to $100. An employe who has ^^^ Continue 
 
 after Leaving 
 been a member of the Benefit Association for one year and leaves Company 
 
 the service of the Company may continue his membership in respect 
 only of the maximum death benefit which he has held during the 
 past year. Each member signs an application for membership, in 
 which he authorizes the Company to deduct his contributions from 
 his wages, names his beneficiary, agrees to be governed by the regu- 
 lations, and states that he is correct and temperate in his habits. 
 Female employes are accepted as members on the same basis as male 
 employes. 
 
 When a member is disabled, he must notify his timekeeper or 
 superior officer at once. The medical examiner decides when bene- 
 fits are to begin and when they are to terminate. 
 
 No benefits are paid when the disability is due to intoxication or 
 the use of alcoholic liquors or to unlawful or immoral acts. This 
 
394 
 
 ACCIDENT PREVENTION AND RELIEF 
 FIGURE J23 
 
 Emery wheels. The man at the left has a piece of emery in his eye because 
 
 he did not wear glasses. The man at the right is wearing the 
 
 glasses provided for ertiery wheel grindere. 
 
 Board of 30 in 
 Charge; One- 
 half Elected 
 by Members; 
 Other Half 
 Appointed by- 
 Company 
 
 bar does not apply to the payment of death benefit to his beneficiaries, 
 provided contribution is made during disability. 
 
 The Benefit Association is in charge of a Board of Trustees, con- 
 sisting of 30 members representing the various works and departments. 
 One-half of the trustees are elected by ballot by the members of the 
 Association and one-half are appointed by the Board of Directors of 
 the Company. The president of the Company is ex-ofRcio chairman of 
 the Board. The Board of Trustees appoints the superintendent and has 
 general supervision over the Association. It meets quarterly. All ques- 
 tions may be appealed to this Board over the decision of the superin- 
 tendent and its decision is final. The superintendent, under the direc- 
 tion of the Board, has charge of all business of the Association and 
 acts as secretary of the Board. He employs medical examiners, clerks, 
 etc., pays all. benefits under the regulations, certifies all bills and pay 
 rolls, and decides all questions properly referred to him. 
 
 A medical examiner is stationed at each of the works. He makes 
 the required physical examinations, visits the sick and injured, and 
 
VOLUNTAUY RELIEF IN THE UNITED STATES 
 
 395 
 
 FIGURE J24 
 
 The wrong way to use a shaper. Employes not usins: guards provided for 
 
 wood sliapers will be discharged. See that the guards 
 
 on your machine are always in place. 
 
 Makes Liberal 
 
 decides when they are disabled and when they are able to work, and 
 performs such other duties as may be required of him by the 
 superintendent. 
 
 The membership in the Association is voluntary. 
 
 At the end of each year, if the average membership in the various company 
 
 manufacturing plants during that year has equalled 50 per cent of the ^ , ., 
 
 Contribution 
 
 average total number of employes in the plants, the Company contrib- Based on 
 
 Membership 
 iites $25,000 to the fund; and if such average membership has equalled 
 
 75 per cent of such total number of employes, the Company contributes 
 ^50,000 to the fund. On January 1, 1910, the Company contributed 
 $50,000 for the preceding year, and according to the membership dur- 
 ing 1910 will undoubtedly be required to make another contribution 
 of the same amount. 
 
 All expenses of the Association are paid out of its funds. The Association 
 
 Financiully 
 annual contribution of the Company is first applied toward the nee- Sound 
 
396 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 FIGURE J25 
 
 
 - — i -• ^.^ii- 
 
 
 . 1 1 
 
 ft 
 
 
 i 
 
 1 
 
 __J^^^M^ ^^w|gii||HHpr » '# 
 
 mm 
 
 er in wood shop. You cannot be injured on a shaper if a guard is 
 used as shown above. 
 
 essary expenses of conducting the affairs of the Association, and the 
 balance remaining after such deduction is available for the payment 
 of benefits. 
 
 The Benefit Association on December 1, 1910, had a membership 
 of over 28,000 and it was in a most flourishing financial condition. 
 
 Workers Do 
 Not Contribute 
 to Pension 
 Fund 
 
 PENSION SYSTEM 
 
 The pension system, like most all other systems, is based on the 
 age and length of service of the employe. The Company, however, 
 does not require any contribution from the employes to the pension 
 fund as the payment of all pensions is assumed by the Company. 
 Male employes who have reached the age of 65 years and who 
 have been in the service 20 years may be pensioned upon their 
 application, while all employes who have reached the age of 70 years 
 and who have been in the service 20 years or more shall be pensioned. 
 
VOLUNTARY RELIEF IN THE UNITED STATES 
 
 397 
 
 FIGURE J26 
 
 The wrong way to use a «a\v guard. Employes not using guard provided for 
 
 circular saws will be discharged. See that the guard on 
 
 your machine is always in place. 
 
 FIGURE J27 
 
 Circular saw in wood shop. This man has the saw guard in place and his 
 hands are protected from injury. 
 
398 ACCIDENT PREVENTION AND RELIEF 
 
 FIGURE J28 
 
 Spinner in twine mill. This girl has stopped her machine and is removing 
 the twine from the shaft with her knife. This is the only safe way. 
 
 FIGURE J29 
 
 Spinner in twine mill. This girl did not obey the rules of the company and 
 tried to remove twine from the shaft with her fingers instead of her knife, 
 while the machine was in motion. A serious injury to her hand was the 
 result. 
 
VOLUNTARY RELIEF IX THE UNITED STATES 399 
 
 Female employes who have reached the age of 50 years and have 
 been 20 or more years in the service may, at their own request, 
 be pensioned, but all female employes shall be retired at the age of 
 GO years, provided they have been in the service 20 years. 
 
 The amount of the annual pension (which is payable in monthly- 
 installments) is arrived at in the following manner: 
 
 For each year of active service an allowance of 1 per cent of the Pension Paid 
 
 average annual pay during the 10 years next preceding retirement. ^^^^^ ^^ Wages 
 
 No pension shall exceed $100 per month or be less than $18 per month. ^^^ Every 
 
 Year of Ser- 
 The administration of the pension fund is in charge of a Pension vice 
 
 Board consisting of five members — all officers or employes of the 
 
 Company and appointed by the Board of Directors. 
 
 ****** 
 
 The International Harvester Company has printed pamphlets de- 
 scribing the three plans mentioned above and copies of same may be 
 obtained by those interested in this subject by communicating with 
 G. A. Ranney, International Harvester Company, Harvester Building, 
 Chicago. 
 
PLANS ADOPTED BY CHENEY BROTHERS FOR INDUSTRIAL 
 INSURANCE AND OLD AGE PENSIONS 
 
 By HOWELL CHENEY 
 
 In the past both the Company and the employes had established, 
 as occasion required, various forms of relief for disability. On 
 the part of the Company these had not been administered under any 
 well-defined system, or in proper relation to each other, and conse- 
 quently had not served the ends for which they were designed, in the 
 
 most efficient manner. Their basis was a charitable one tending to „ , 
 
 Based on 
 
 supplement incompetence and thriftlessness, rather than to encourage Charity in- 
 efficient 
 efficiency and foresight. On the part of the employes their mutual 
 
 assistance has been limited necessarily to particular or fraternal 
 groups, and so has not been within the reach of the great majority 
 of employes. 
 
 The industry is one of the least hazardous of mechanical employ- 
 ments, and the problem of taking care of industrial accidents was felt 
 to be only an incident in the general problem of social insurance, 
 and not to be separated from it. The value of the contributory prin- 
 ciple was recognized, but its object in securing a mutual and co- 
 operative undertaking was obtained by making the insurance against contributory 
 Industrial injuries, upon a fixed and liberal scale entirely at the em- J^^^j^^^^ 
 ployer's expense, dependent upon the employe's protecting himself 
 against disability due to sickness at his own expense. Also the grant- 
 ing of a pension as a return for long and efficient service was made 
 
 401 
 
40 Per Cent 
 of Employes 
 Women 
 
 Disability 
 
 Insurance 
 
 Through 
 
 Mutual 
 
 Benefit 
 
 Association 
 
 402 ACCIDENT PREVENTION AND RELIEF 
 
 dependent upon the individual's having contributed toward an annuity. 
 A long established custom in the payment of accident benefits made a 
 direct cash contribution impracticable, and in the particular industry 
 not essential, because most of the injuries being of a minor nature 
 the establishing of a cash contribution or of a long waiting period 
 would make it appear that the injured persons were still carrying the 
 whole of the burden. 
 
 On the lines indicated above the Company proposed to its em- 
 ployes a mutual and co-operative undertaking, whereby a comprehen- 
 sive range of insurance against loss of earning power due to all forms 
 of disability was made possible for all under equal conditions as re- 
 gards costs and results. Forty per cent of the employes are women, 
 and a careful study was made of this side of the problem, which is 
 a feature the railroads, wood and metal trades have not had to 
 consider. 
 
 The development of the scheme proposed the uniting of all these 
 forms of protection under two general plans, which were carefully 
 correlated: — First, the organization of a mutual benefit association 
 managed jointly by the Company and its employes to cover injuries, 
 sickness, annuities and death; and secondly, the development by 
 the Company of old age pensions as assuring a definite return for long, 
 efficient and faithful service. The following description states in 
 concise form the more important features of these plans. The exact 
 conditions governing them are contained in the formal constitution 
 and by-laws. 
 
 Workers Con- 
 tribute 2 Per 
 Cent of Wages 
 
 OBJECT 
 The object of the Association was to provide a simple and easy 
 means whereby those employes who were willing to set apart ap- 
 proximately 2 per cent of their wages might secure to themselves 
 or their families an assured income in the form of certain benefits 
 to be paid in the case of death, sickness, injury or incapacity from 
 old age. 
 
VOLUNTARY RELIEF IN THE UNITED STATES 403 
 
 MEMBERSHIP 
 
 Prior to December 1, 1910, all of the employes of Cheney Brothers, ^g Years the 
 
 or subsidiary companies, were eligible, unless physically disqualified, ^^® Limit for 
 
 Full Member- 
 
 to full membership. Since December 1, 1910, employes over 45 ship 
 years of age have been eligible to limited membership only, which en- 
 titles them to sick and 'accident benefits, but not to death claims or 
 annuities. The contributions of full members are 2 per cent of the 
 mean wage of the class to which they belong, and of limited mem- 
 bers IM: per cent. 
 
 ORGANIZATION 
 
 The affairs of the Association are managed by a president, vice- Board of 
 
 Trustees Made 
 president, superintendent, medical director and eleven trustees. The ^p qj -pive 
 
 treasurer of the Company is the Association treasurer and an ex- pp° ^ ^ ° 
 
 officio member of the Board of Trustees. Of the other members of ^^^^ Repre- 
 sentatives of 
 the Board five are appointed by the directors of the Company, and" Association's 
 
 , , , Members 
 
 five are elected by the members. The president and vice-president 
 
 are chosen by the Board on the nomination of the trustees represent- 
 ing the members. The superintendent and medical director are ap- 
 pointed by the Board on the nomination of the trustees representing 
 the Company. There are three executive committees known as the 
 operating, finance and auditing committees. One member of the 
 operating committee is chosen by the trustees representing the mem- 
 bers, one by the trustees representing the Company, and the third 
 is the superintendent. The finance committee is chosen in like man- 
 ner, the treasurer being the third member thereof. 
 
 CONTRIBUTIONS 
 
 Contributions are paid monthly in advance and are subtracted 
 from any wages earned, or otherwise are paid in cash. 
 
404 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Benefits Paid 
 Automatically 
 
 Injured 
 Workers 
 Taken 
 Care of 
 
 ACCIDENT BENEFITS 
 
 All accident benefits are paid by the Company, including medical 
 and surgical attendance, and hospital maintenance, where necessary, 
 but are distributed through the medium of the Association. They are 
 allowed to members of the Association who are injured in the service, 
 unless the injury was due to the member's own willful and serious 
 misconduct, or disobedience of rules reasonably designed for the 
 protection of employes. Such accident benefits are paid automatically 
 to members only, without any question as to the Company's legal lia- 
 bility. The specific benefits are: 
 
 (a.) In case of death, three years' wages and reasonable funeral 
 expenses. 
 
 (b.) In case of total incapacity, half pay during the continuance 
 of disability, excepting the first three days, for a maximum of six 
 years. 
 
 (c.) In case of partial incapacity, after the resumption of work, 
 one-half the difference between the wages earned before and after 
 the injury. Such partial incapacity benefits continue for such part 
 of the six years as the total incapacity benefits have not been paid. 
 
 (d.) In all cases of accidents to members, medical and surgical at- 
 tendance, artificial limbs and hospital maintenance, where necessary, 
 are provided at the expense of the Company. 
 
 (e.) One per cent is added to the above accident benefits for 
 every year of service over five; and in the case of married members 
 supporting families, 5 per cent for each child, until a maximum in- 
 crease of 25 per cent is reached. 
 
 SICK BENEFITS, AND DEATH CLAIMS FROM DISEASE 
 
 Sick benefits are paid out of the contributions of members, amount- 
 ing to 2 per cent of their average wages for full members and l^A per 
 cent for limited members, plus a contribution from the Company of 
 one quarter of the amount paid in by the members. 
 
VOLLNTARY RELIEF IN THE UNITED STATES 
 
 405 
 
 Members are divided into five classes according to their average 
 weekly wages. 
 
 The specific benefits and contributions for each class are given be- 
 
 low; 
 
 SECTION 6. SCHEDULE OF SICK AND DEATH BENEFITS 
 
 
 Class 
 A 
 
 Class 
 B 
 
 Class 
 C 
 
 Class 
 D 
 
 Class 
 E 
 
 Those receiving \ more than 
 
 weekly '( not more than 
 
 $7.50 
 
 $7.50 
 12.50 
 
 $12.50 
 17.50 
 
 $17.50 
 22.50 
 
 $22.50 
 
 Mean wage of Class 
 
 $5.00 
 
 $10.00 
 
 $5.00 
 2.50 
 
 $15.00 
 
 $20.00 
 
 $24.00 
 
 Benefit per ( 1st 52-weeks 
 week \ 2d 52 weefejs 
 
 $2.50 
 1.25 
 
 $7.50 
 3.75 
 
 $10.00 
 5.00 
 
 $12.00 
 6.00 
 
 Death Claims 
 
 $130.00 
 
 $260.00 
 
 $390.00 
 
 $520.00 
 
 $624.00 
 
 r 2% of mean wage 
 Weekly ) — full members 
 Contribution ■^ *li4%_limited 
 ( members 
 
 $0.10 
 .061/4 
 
 $0.20 
 
 .121/2 
 
 $0.30 
 
 .183/4 
 
 $0.40 
 .25 
 
 $0.50 
 
 .311/4 
 
 ♦Limited membership purchases no death claims nor annuity. 
 
 In the case of sickness or injuries other than those suffered in Half Benefits 
 
 . ., . ,,„-.,, J. XT . 1 to Members 
 
 the service, they receive one-half of the mean wage of their class ]3isabied 
 
 for the first 52 weeks (excepting the first three days) and one-quarter While Of£ 
 
 for the second 52 weeks; and in the case of death one-half of the mean 
 
 yearly wage of their class. 
 
 ANNUITIES 
 
 The balance of the money, contributed by the members, left after 
 the payment of sick and death benefits, is transferred to a fund called 
 
406 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Reserve 
 Fund for 
 Paying Annui- 
 ties 
 
 the Reserve Fund. This is invested and allowed to accumulate into 
 a fund from which annuities will be paid to members from the time 
 of their retirement until their death. Members who leave the service 
 after contributing five years can recover that proportion of their 
 contributions which was charged to this fund, without interest. The 
 dependents of members who have died before becoming entitled to an 
 annuity, can recover with compound interest at 4 per cent. Female 
 members may at the time of marriage recover the proportion of their 
 contributions charged to this fund, with compound interest at 4 per 
 cent. Thus members may benefit from this fund by three methods. 
 
 (a.) By retiring at the annuity age because of either old age or 
 permanent incapacity. 
 
 (b.) By leaving the service after having contributed for five years. 
 
 (c.) By the beneficiaries of members receiving as an addition to 
 the death benefit that proportion of the member's contributions which 
 has been carried over to the fund, with interest compounded at 4 per 
 cent annually. 
 
 Annuities can be paid under the first classification to the fol- 
 lowing: 
 
 (a.) To men over 70 years of age and women over 60 years of ago, 
 who have been contributors to the fund for 10 years. 
 
 (b.) To men over 65 years of age and women over 55 years of age 
 who have been contributors to the fund for 15 years and who are 
 retired. 
 
 (c.) To men or women of any age who have been contributors 
 to the fund for 20 years and who have become permanently incapaci- 
 tated for further work in the service of the Company. 
 
 On leaving the service there is a further restriction in that the 
 payment may not be made until one year after the termination of 
 membership, which is to prevent a dissipation of the fund for pur- 
 poses other than were intended. 
 
 Under the third classification if a member dies before becom- 
 ing entitled to an annuity it becomes a definite addition to his death 
 benefit. 
 
VOLUNTARY RELIEF IN THE UNITED STATES 
 
 407 
 
 No annuities can be paid under the plan for 10 years, and their 
 amounts will be dependent upon several unknown factors, such as the 
 average rate of interest to be obtained on the investments of the Asso- 
 ciation, the average age of entering and retiring, and the number of 
 withdrawals. It is conservatively estimated that they will be equal to 
 about one-fifth of the amount of the pensions. 
 
 MONTHLY ANNUITIES FOR CLASS C 
 
 
 
 
 YEARS 
 
 CONTRIBUTED 
 
 
 
 Age at 
 Retirement 
 
 20 
 
 25 
 
 30 
 
 35 
 
 40 
 
 45 
 
 50 
 
 70 
 
 
 $4.80 
 
 $6.63 
 
 $8.94 
 
 $11.79 
 
 $15.36 
 
 $19.74 
 
 65 
 
 $2.49 
 
 3.57 
 
 4.92 
 
 6.60 
 
 8.67 
 
 11.25 
 
 
 60 
 
 2.01 
 
 2.88 
 
 3.93 
 
 5.25 
 
 6.90 
 
 
 
 55 
 
 1.71 
 
 2.43 
 
 3.30 
 
 4.41 
 
 
 
 
 50 
 
 1.50 
 
 2.13 
 
 2.88 
 
 
 
 
 
 45 
 
 1.35 
 
 1.89 
 
 
 
 
 
 
 PENSIONS 
 
 The pension system is related to the Benefit Association in that 
 its members only are eligible for pensions. The granting of pensions 
 remains, as before, a sole activity of the Company. And while mem- 
 bership in the Association establishes eligibility, it does not in itself 
 
 create any right to a pension, which is granted at the discretion of Company 
 
 Grants 
 
 the Directors of the Company as a return for long, efficient and Pensions for 
 
 Long and 
 
 faithful service. EfflcSent 
 
 Pensions may be granted by the pension committee, under the regu- Service 
 lation of the directors to the following classes of employes, if mem- 
 bers of the Benefit Association: 
 
408 ACCIDENT PREVENTION AND RELIEF 
 
 (a.) To any employe over 50 years of age who has been 25 or more 
 years in the service, and who has become totally incapacitated for 
 further work at any employment or trade; or to those employes as 
 much younger than 50 as they have worked years more than 25, who 
 have become totally incapacitated. 
 
 (b.) To men, after 25 years of service, who are 7J years of age or 
 over; or to men for the same term, who are from 65 to 69 years of age 
 inclusive and have become incapacitated for work of a like character 
 to their past trade or employment. 
 
 (c.) To women, after 20 years of service, who are 60 years of age 
 or over; or to women for the same term who are from 55 to 59 years 
 of age, inclusive, and have become incapacitated for work of a like 
 character to their past trade or employment. 
 
 The amount of a pension is determined by the employes' efficiency 
 as expressed in wages and years of service. It is 10 per cent of the 
 average actual monthly wages for the 10 years preceding retirement 
 plus 1 per cent of the same amount for every year of service. There 
 is no maximum or minimum rate of pensions and all from super- 
 intendents down will be figured by the above rule. 
 
 ESTIMATE OF AMOUNT OF PENSIONS FOR VARIOUS RATES OF 
 WAGES AND TERMS OF SERVICE 
 
 Averagre 
 Monthly 
 Rate of 
 
 $36 
 
 $40 
 
 $45 
 
 $50 
 
 $60 
 
 $70 
 
 $80 
 
 $90 
 
 $10(J 
 
 Wages 
 
 
 
 
 
 
 
 
 
 
 Term of 
 Service 
 
 
 
 
 
 
 
 
 
 
 20 years 
 
 $10.80 
 
 $12.00 
 
 $13.50 
 
 $15.00 
 
 $18.00 
 
 $21.00 
 
 $24.00 
 
 $27.00 
 
 $30.00 
 
 25 years 
 
 12.60 
 
 14.00 
 
 15.75 
 
 17.50 
 
 21.00 
 
 24.50 
 
 28.00 
 
 31.50 
 
 35.00 
 
 30 years 
 
 14.40 
 
 16.00 
 
 18.00 
 
 20.00 
 
 24.00 
 
 28.00 
 
 32.00 
 
 36.00 
 
 40.00 
 
 35 years 
 
 16.20 
 
 18.00 
 
 20.25 
 
 22.50 
 
 27.00 
 
 31.50 
 
 36.00 
 
 40.50 
 
 45.00 
 
 40 years 
 
 18.00 
 
 20.00 
 
 22.50 
 
 25.00 
 
 30.00 
 
 35.00 
 
 40.00 
 
 45.00 
 
 50.00 
 
 45 years 
 
 19.80 
 
 22.00 
 
 24.75 
 
 27.50 
 
 33.00 
 
 38.50 
 
 44.00 
 
 49.50 
 
 55.00 
 
 50 yeare 
 
 21.60 
 
 24.00 
 
 27.00 
 
 30.00 
 
 36.00 
 
 42.00 
 
 48.00 
 
 54.00 
 
 00.00 
 
 55 years 
 
 23.40 
 
 26.00 
 
 29.25 
 
 32.50 
 
 39.00 
 
 45.50 
 
 52.00 
 
 58.50 
 
 65.00 
 
VOLUNTARY RELIEF IN THE UNITED STATES 409 
 
 COST TO EMPLOYES AND ITS DISTRIBUTION IN BENEFITS 
 The cost to employes is 2 per cent of their wages which an actuarial 
 estimate distributes as follows: 
 
 Per cent 
 
 Cost of Sick Benefits 9 
 
 " Death Benefits from Sickness 4 
 
 " " Out of Service Accidents, classed as sickness 125 
 
 Transferred to Reserve Fund for Annuities 575 
 
 Total. 2. 
 
 It has been possible to give an amount of insurance under these 
 plans which it would not be possible for members to purchase at the 
 same cost from any commercial insurance company, or in any fra- 
 ternal or mutual benefit society, because all of the operating expenses, 
 all the benefits for injuries received in the service and 25 per cent of 
 the amount contributed by the members toward sick benefits, death 
 claims from sickness, and annuities, are paid for by the Company, in 
 addition to the entire cost of pensions, which are administered under a 
 separate plan. 
 
 In dealing with insurance against sickness and death it is a very Benefits 
 
 Greater than 
 difficult problem to convince wage earners, whose experience with in- those of 
 
 surance problems is not large, that a sound conservative proposition ^^^^^^^ ^- 
 
 surance Com- 
 
 based on scientific actuarial estimates is in the long run cheaper panics or 
 
 Mutual and 
 as well as safer for them, than the less expensive premiums charged Fraternal 
 
 Societies 
 by assessment and fraternal benefit associations, whose universal 
 
 practice is to encourage new business by deferring the inevitable 
 day of reckoning. It would have been a material assistance in meet- 
 ing this problem if the right to a death benefit could have been "con- 
 tinued after leaving the service until some fixed age, as is done by 
 the International Harvester Co.; but the Connecticut laws made such a 
 course impossible. As a matter of fact, few such policies would be 
 
410 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 continued, but it would answer the objection that the life insurance 
 feature compelled continuance in one employment, whereas fraternal 
 associations were under no such restrictions. 
 
 COST TO THE COMPANY 
 
 The cost of the plan to the Company was estimated to be the 
 
 following percentages of the pay roll: 
 
 Per cent 
 
 Operating Expenses Including Inspection and Medical Expenses. .125 
 
 In Service Accidents 375 
 
 Contribution to Sick Benefit Fund 5 
 
 Total Benefit Association Expenses 1. 
 
 Cost of Pensions 2. 
 
 Total 3. 
 
 No Guide for 
 
 Other 
 
 Industries 
 
 The cost of pensions would form no criterion as to estimating the 
 cost of pensions in other industries or establishments, as the char- 
 acter of the help is most unusually stable and fixed and contains a 
 very high percentage of employes eligible to pensions either imme- 
 diately or prospectively. 
 
 THE REASONS FOR THE ASSUMPTION OF THESE 
 OBLIGATIONS 
 
 In the case of accidents it was the replacing of a haphazard char- 
 itable system, more or less dependent upon the varying discretion of 
 Company Con- 
 siders Accident department managers, with a uniform system guaranteeing a just and 
 Compensation 
 
 P^r* o^ equal treatment of every case. In a wider sense it is a definite state- 
 
 Cost of Pro- 
 duction ment by the Company of the general principle under which they have 
 
 acted for many years, that injuries, so far as they are a necessary 
 
 incident to industry, are a part of the cost of production and should 
 
VOLUNTARY RELIEF IN THE UNITED STATES 411 
 
 be borne to that extent by the consumer, and not entirely by the 
 injured person. The plan provides for a means of determining this 
 factor of the cost of production more definitely, and of insuring both 
 the Company and the employe against it. 
 
 In the case of sickness four considerations induced the Company's 
 contribution to the sick benefit fund. First, it was an extension of 
 the Company's past system of relief to individuals and tubercular 
 patients, so that it was not entirely dependent upon charity but was 
 an encouragement to the efficient and provident employe who was 
 willing to make a sacrifice to secure the additional benefits guar- 
 anteed. Secondly, it covered whatever slight occupational disease 
 or unsanitary conditions might be connected with the industry, which 
 its members were powerless to protect themselves against. Third, 
 illness as well as injury occasion a large economic waste to the 
 Company as well as to the employes on account of lost time, idle 
 machinery, and ineffective work. It is to the direct interest of the 
 Company as well as the individual to bring about a re-establishment 
 of health, and consequently efficiency, by supplying the best conditions 
 
 possible for recovery. In furthering these ends much could also be Benefited by 
 
 Helping Sick 
 accomplished by scientifically helping the employes to protect them- and injured 
 
 selves from the depredations of cheap assessment plans, which de- 
 prived them of the assistance which they supposed they had purchased, 
 when they most needed it in their old age. 
 
 In the case of pensions the past practice of the Company has tended 
 toward their bestowal in cases of necessity. The new regulation 
 makes a pension dependent on the part of the Company on long, 
 efficient, and faithful service; and further on the part of the employe 
 upon his willingness, independently of it, to supplement his pension Pensions 
 by a definite degree of providence on his own part in the form of g^siness 
 an annuity. This makes a pension not so much a charity as an ac- Policy 
 knowledgment of the additional value of length and fidelity of serv- 
 ice; it provides a pension for the efficient, thrifty employe as a mat- 
 ter of sound business policy, rather than to the less eflicient and 
 improvident hand as a matter of charity. 
 
412 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 PRINCIPLE? INVOLVED 
 
 Liability 
 
 Plan Insures 
 Company 
 Against Un- 
 just Legal 
 Burdens 
 
 The aim was first to eliminate the whole question of liability, and 
 to place the remedy on an entirely differen| plane. There- 
 fore, no attempt has been made to alter in any respect the 
 present legal rights or liabilities of either party to the contract. And 
 the Company did not believe it was running a great risk in not de* 
 manding a release from some portion of its liability in lieu of assum- 
 ing considerable obligations not imposed upon it by law and statutory 
 rights. The character of the plan itself is the Company's best insur- 
 ance against the imposition of unjust and unreasonable legal burdens; 
 best in proportion as it automatically insures the workingmen, in 
 their own right and not as a charity, of a fairer distribution of the 
 burden of accidents and disabilities inevitably due to the modern 
 organization of industry than thej' could obtain either through the 
 intermediary of a law, a court or an insurance company. 
 
 Individual 
 Replaced by 
 Collective Re- 
 sponsibility 
 
 Compensation vs. IKsurance 
 
 The principle is fast becoming established that industrial 
 accidents are a risk inherent in modern industry and not 
 justly based on any theory of personal fault; and that an 
 economical settlement of the matter is dependent upon our remov- 
 ing it from the sphere of individual responsibility and basing it 
 squarely upon the new theory of a collective responsibility for a risk 
 inherent in the system. It should follow from this that either "dam- 
 ages" or "compensation" in the sense of making good a loss is as 
 mistaken a settlement as was the principle of legal awards assessed 
 by a court. No amount of damages can rightly compensate for the 
 life of a husband, son or brother. The ultimate cause lies in human 
 nature and the organization of industry. The direct causes are as 
 varied as the characters of men and the organization of industry. 
 They cannot be exactly defined by laws. They belong to a system. 
 
VOLUNTARY RELIEF IN THE UNITED STATES 413 
 
 not to individuals. Clearly the remedy must be worked out between 
 the component parts of the system, and must be much more in the 
 nature of a mutual insurance against a known risk than of compensa- 
 tion for damage done. 
 
 Character of the Insurance 
 
 It is not in the nature of charity or poor relief. Hence, 
 to measure the insurance by the "dependence" created, as 
 is done in the English system, is to start upon an entirely 
 false basis. It is an insurance against loss or depreciation of earning 
 power, i, e., wages, or efficiency. The aim should be entirely to con- 
 serve or maintain the efficiency of workers, and hence their insurance ^ 
 
 Death and 
 
 should be expressed entirely in the terms of wages. There should Disease Just 
 
 as Important 
 be no maximum or minimum benefits, but all from directors to door- to insure 
 
 keepers should be benefited by the same plan. One scale of premiums Occidents 
 and a corresponding one for benefits, both a percentage of wages. 
 Loss of earning power from industrial injuries is only one, and a 
 minor, cause of loss of earning power. Disease and death must in- 
 evitably impair the earning power of every worker; industrial in- 
 juries that of a very few. If there are sound economic reasons for 
 compelling an insurance of the one, why not of them all? 
 
 Note. — Messrs. Cheney Brothers will furnish complete copies of the 
 ccnstitution and by-laws of the Mutual Benefit Association in operation 
 at their works, to persons interested. Copies may be had from the 
 National Association of Manufacturers, 30 Church Street, New York 
 City. 
 
o 
 
 O 
 
VOLUNTARY RELIEF IN THE UNITED STATES 415 
 
 MUTUAL INSURANCE PLAN OF THE GENERAL ELECTRIC 
 COMPANY'S EMPLOYES, AT WEST LYNN, MASS. 
 
 By MAGNUS W. ALEXANDER 
 
 The spirit of the age is prompting the managers of industrial en- 
 terprises to appreciate with increasing insight the human phase of 
 their problem. Before the factory method became an established 
 part of our industrial system, the master concerned himself with the 
 well-being of his men. When large groups of employes, however, 
 came under the management of a single employer or a corporation, 
 master and men in their personal relations began to drift apart. Of 
 late the care of the employes is again attracting the attention of our 
 
 industrial managers, who, on an enlarged basis, and with due con- 
 
 ^ ,, , , No Paternal- 
 
 sideration to the changed social and industrial conditions, are in many jsj^; promotion 
 
 ways endeavoring to increase the well-being and contentment of their °^ Self-Help 
 
 Instead 
 
 employes. The philosophy involved in this new effort, however, 
 eliminates the old paternalistic idea of taking care of the employes, 
 and substitutes the modern view of stimulating and assisting em- 
 ployes to take care of themselves. 
 
 It was in line with this thought that the officials of the General 
 Electric Company at West Lynn, Mass., some eight years ago, con- 
 sidered the establishment of a mutual benefit association. Such an 
 organization, they believed, would, if properly constituted and man- 
 aged, result in physical and moral benefit not only to the employes, 
 but to the company as well. The idea of a mutual benefit association 
 among employes is neither new nor novel; yet the Association at 
 the Lynn works merits attention on account of its new and novel 
 features, which, during a period of eight years, have proved their 
 value. 
 
A Question of 
 Management 
 
 Some Draw- 
 backs of Ordi- 
 nary Mutual 
 Benefit Asso- 
 ciations 
 
 Association 
 Made up 
 of Small 
 Self-Governing 
 Bodies of 
 Workers 
 
 416 ACCIDENT PREVENTION AND RELIEF 
 
 Before the Company started the plan it investigated existing or- 
 ganizations of a similar character, for the purpose of ascertaining the 
 causes of the partial or total failure of some of them, and the reasons 
 for the ineffectiveness of the many in developing their full poten- 
 tialities. As a result of this investigation, it was found that certain 
 features tended to operate against the complete success of a mutual 
 benefit association. It seemed clear that whenever the employer or 
 his agents take, by statute, a prominent part in the management of 
 such an organization, the workmen themselves not only fail to assume 
 the responsibilities for the proper administration of the funds, but usu- 
 ally lose genuine interest in the Association, and finally look upon 
 the whole matter with a suspicion which, though unfounded, is not 
 unnatural. On the other hand, it must be borne in mind 
 that a large organization presents an administrative problem 
 that cannot easily be dealt with by the employes alone, and 
 of necessity, therefore, calls for active participation in the man- 
 agement by the employer. Yet, when the Association becomes 
 so large as to require the full service of one or more officials, the mem- 
 bers look with disfavor upon the use of part of their contributions 
 for the payment of salaries for these officials. Even though the em- 
 ployer assumes such payments, this feeling of discontent is not wholly 
 overcome. Finally, the accumulation of large funds in the treasury 
 of an Association accentuates the belief of the individual member that 
 in case of discontinuance with the Company he should not lose his 
 equity right in these funds — he forgets that his small contribution 
 can entitle him only to insurance protection of a limited time, for 
 which he pays his premium in advance. 
 
 When these deficiencies became understood, certain ideas suggested 
 themselves as fundamental for a successful administration of a large 
 mutual benefit association. They are: 
 
 1. Sub-division of the Association into small, self-acting and self* 
 administering, though closely connected, bodies. 
 
 2. Management of these sub-divisions by the members themselves, 
 with a general supervision of all by a representative of the Company, 
 
VOLUNTARY RELIEF IN THE UNITED STATES 417 
 
 to keep the machinery in proper working order, and at the same 
 time, act as the connecting link between the Association and the 
 Company. 
 
 3. Limitation of the size of trust funds in the treasuries to such 
 amounts as would, under ordinary circumstances, seem sufficient for 
 the payment of all guaranteed benefits. 
 
 4. Utilization of all or very nearly all contributed moneys for the 
 purposes for which they were contributed — sickness, accident and life 
 insurance. 
 
 5. Simplicity of administration in order that every member may 
 fully understand his own obligations and rights and those of all others 
 connected with the Association. 
 
 While these principles can be worked out in many ways, local 
 conditions and available personnel necessarily being influencing fac- 
 tors, any plan, I believe, will prove efficacious if it is designed: to 
 
 Insurance 
 offer employes the cheapest insurance consistent with sound and safe Must be Inex- 
 
 ,,.,.,. „ . , pensive and Pro- 
 
 management against disability from sickness or accident, and death; mote Relations 
 
 and to assist in the development of such relations between employer ^^^^^^^ ^"^" 
 
 ployer and 
 
 and employes as will tend to increase their mutual loyalty, and con- Employes 
 sequently bring about increased efficiency and contentment. 
 
 The correctness of the first assumption will be readily accepted by 
 all. The second, however, usually receives no open recognition; but 
 to my mind it should be clearly enunciated in order to eliminate mis- 
 understanding and distrust on the part of the employes. Inasmuch 
 as it is one of the functions of good management to create a body of 
 efficient and contented employes, every proper scheme to this end is 
 justified and will justify itself by a clear statement of the premises 
 on which it rests. 
 
 In this spirit the constitution and by-laws of the Thomson-Houston 
 
 Mutual Benefit Association — named after the then existing Thomson- Organized 9 
 
 Houston Company, but now called the General Electric Company — Essential ' 
 
 were worked out, and the Association was organized on August 9, features 
 
 Remain 
 
 1902. Though several changes have since been made in the con- Unchanged 
 stitution and by-laws, the essential features have remained unaltered. 
 
Divided into 
 Sections of 
 Not More than 
 150 Members 
 Each 
 
 Sectional 
 Division 
 Prevents 
 Fraud 
 
 Saves Time 
 and Expense 
 
 418 ACCIDENT PREVENTION AND RELIEF 
 
 The constitution provides for an Association, which shall consis 
 of individual Sections of not more than 150 employes each. Eacl 
 Section has its own administrative body and treasury, and operates 
 independently of, and yet interdependently with, all other Sections of th( 
 Association, under the common constitution and by-laws. The mem 
 bership of each Section is, so far as practicable, recruited from a 
 department of the factory, and transfers to other Sections are made 
 possible whenever members are transferred to other departments foi 
 business reasons. When necessary, two or more Sections are formed 
 in the same department. 
 
 The advantages of this sub-division are obvious. This arrangement 
 groups together for mutual aid employes in a department who arc 
 acquainted with each other, establishes therefore a community ol 
 active interest in each small group and makes the choice of the Board 
 of Directors of each Section more truly an expression of the will oi 
 the members than would ordinarily be the case in a large Associa- 
 tion. New employes of the department are quickly approached with 
 a request to join, and will be usually attracted to an organization 
 composed of fellow workers in the same department, when they might 
 hesitate to join a large Association of the whole factory. On account 
 of the acquaintanceship among the members of a Section, the gen- 
 uineness of a disability claim of any member can be readily estab- 
 lished, and fraudulent practice easily checked. Moreover, under this 
 arrangement the secretary-treasurer of each Section can collect dues 
 weekly without loss of more than two or three hours, and at the time 
 of the collection can personally inform the members of the condi- 
 tions of the Section. The payment by the Company of the usual wage 
 to the secretaries during such periods is neither an undue financial 
 burden on the employer, nor is it subject to the same criticism that 
 was made in reference to officials paid for their full time. Finally, 
 a division of the whole Association into small Sections gives the Com- 
 pany an opportunity to come into closer touch with the individual 
 members than would otherwise be the case. 
 
VT'LUNTARY RELIEF IN THE UNITED STATES 419 
 
 Each Section solicits its own membership, collects its own dues, Death Risks 
 and compensates for disabilities from sickness or accident of its own 
 members. All Sections, however, have pooled their death risks so 
 as to distribute this more expensive risk over a large membership. 
 To this end a fund is maintained by monthly assessments on the va- 
 rious Sections, and from it all payments for death benefits for de- 
 ceased members of the whole Association are made. The chairmen 
 
 of the Sections form the committee in charge of the Fund, and their 
 
 Powers of 
 prerogatives extend so far as to permit the granting of extra dis- Death Fund 
 
 ability benefits beyond those which each Section may give under the ommittee 
 constitution and by-laws. Requests for emergency benefits are referred 
 to the committee by the secretary of the Section whose member is 
 to receive the advantage, and are then promptly transmitted to an 
 investigating board of three. This investigation forms the basis of 
 action by the whole committee, which may grant a loan, give a lump 
 sum or weekly benefits in addition to those guaranteed by the Section, 
 or assume the expenses for special medical treatment and other 
 necessaries of life. 
 
 While this arrangement gives a much desired flexibility to the 
 scheme of granting benefits, it safeguards itself in that the repre- 
 sentative of each Section serving on the committee naturally scru- 
 tinizes the claims made by other Sections. This exercise of care is 
 still further fostered, and an economic administration of the Fund 
 assured, by the provision which suspends assessments on the various 
 
 Sections whenever the amount in the treasury reaches $2,000, and re- ^^^^ Kept 
 
 Between $1,000 
 
 sumes monthly collections only when, by death and emergency pay- and $2,000 
 ments, the treasury is reduced to $1,000. Experience has shown that 
 a floating treasury with a $2,000 maximum limit is sufficient to meet 
 all ordinary payments. In order, however, to carry still further the 
 aim of minimizing contributions by the Sections to the Death and 
 Emergency Benefit Fund, the committee of the latter arranges for 
 and assumes charge of the social activities of the Association, the 
 proceeds of which are turned into the general fund. At the same 
 
Funds of 
 Each Section 
 Vary Between 
 $200 and 1300 
 
 Only 
 
 Legritimate 
 
 Disability 
 
 Claims 
 
 Granted 
 
 Average 
 Cost to Each 
 Member 
 
 420 ACCIDENT PREVENTION AND RELIEF 
 
 lime, the infusion of a wholesome social spirit into the Association 
 produces beneficial results. 
 
 The same policy or economy is also applied to each individual 
 Section, which, under the constitution and by-laws is directed to dis- 
 continue the collection of weekly dues from its members as soon as 
 its treasury contains $300 or more, and to call for dues again when 
 the payment of disability benefits, assessments to t!ie General Fund, 
 and other expenses have reduced the balance in the treasury to $200. 
 The desire for an economical administration in each Section stimulates 
 the effort to discontinue general assessments by economy in the 
 Emergency and Death Benefit Fund, and to compensate only for just 
 disability claims when the same are supported by an investigation 
 of the visiting committee, or by other evidence. In each case, unless 
 the disabled member is so far removed from Lynn as to make a 
 personal investigation by a visiting committee impracticable, every 
 claim for disability benefits is investigated weekly by a visiting 
 committee, composed of members of the claimant's Section. The 
 tendency for economy is still further promoted by a wholesome rivalry 
 between the different Sections, each of which desires to afford to 
 its members the cheapest insurance through frequent suspension of the 
 payment of dues. 
 
 In this way members of many Sections have been insured by pay- 
 ing weekly dues during a part of the year only. While the consti- 
 tution and by-laws provide for weekly dues of 10 cents during the 
 periods of collection, statistics show that the average dues per year 
 per member amount to not more than $4.00, or about 8 cents per 
 week. In return for this small contribution, the members secure 
 a life insurance of $100, and a disability insurance of $6 per week 
 for male, and $5 per week for female mehibers, for a total period 
 of not more than 14 weeks in each consecutive 12 months; and, fur- 
 thermore, they are assured of additional emergency benefits when a 
 claim for such seems justified in the judgment of the general commit- 
 tee. Thoughtful consideration will readily prove that it is better for 
 all concerned to limit the statutory obligations for disability benefits 
 
VOLUNTARY RELIEF IN THE UNITED STATES 421 
 
 to a relatively short period, and to transfer further obligations to the 
 
 Emergency and Death Benefit Fund, where each case can be dealt 
 
 with according to its particular needs and in a more liberal manner. 
 
 Although the constitution and by-laws provide for a sub-division of 
 
 the whole Association into small bodies, the latter are at the same time 
 
 placed on the same basis of operation, and are again brought into 
 
 close correlation through the Emergency and Death Benefit Fund, 
 
 through social activities involving the whole Association, and, finally. General Chair- 
 man Appointed 
 through the general chairman. The latter, who is the only oflBcial by Company 
 
 of the Association and the chairman of the general fund, is appointed visory Capacity 
 by the Company, but with this selection the statutory influence of *° Association 
 the Company ceases. The functions of the general chairman are to 
 guard the interests of the whole Association, to stimulate the various 
 officers and committees, and to keep all Sections within the bounds 
 of constitutional limitation. Though he is not vested with any execu- 
 tive authority, save that which a Section may delegate to him from 
 time to time, his real power lies in the personal influence which he 
 may be able to exert; and this influence will be strengthened and en- 
 larged to the degree to which he will keep it clearly before all mem- 
 bers that his counsel and suggestions are only of an advisory nature, 
 and do not need to be accepted by the Sections unless their contrary 
 action may conflict with the provisions of the constitution and by- 
 laws. The Emergency and Death Benefit Fund Committee offers 
 to the general chairman an excellent opportunity to discuss the wel- 
 fare of the Association as a whole, and of the individual Sections, and 
 to shape the thought of the chairmen of the various Sections, through 
 whom his influence may be brought home to the membership at large, stands Be- 
 Finally, holding his flnger on the pulse of the membership on the ^^^^^ Com- 
 pany and 
 one side, and having the ear of the Company on the other side, the Members of 
 
 Different 
 general chairman can work to the benefit and advantage of both in- Sections 
 
 terests, and he will fill this dual position so much the better the more 
 fairly and impartially he deals with both sides. 
 
 During eight years as general chairman of the Association, my 
 advice has been asked in hundreds of cases, either as to an interpre- 
 
421 
 
 '^9 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Liberality is 
 the Motto in 
 Dealing With 
 Disability and 
 Death Benefit 
 Claims 
 
 Flinds Are 
 Administered 
 Carefully, Be- 
 ing Raised 
 Entirely by 
 the Workers 
 Themselves 
 
 tation of the constitution and by-laws, or to tlie extent to wliich 
 liberality and leniency might properly be carried in individual cases. 
 In regard to the latter point, I have always advocated that inasmuch 
 as the Association was formed primarily for mutual help in favor of 
 those in distress, no claim of a disabled member nor of the heirs 
 of the deceased should be refused, unless the invalidity of the claim 
 or its fraudulent character can be shown conclusively; and, further, 
 I have maintained that it is better, with the limited funds on hand, 
 to give a little to many rather than to give much to a few. In re- 
 gard to the interpretation of the constitution and by-laws, on the other 
 hand, my advice has always been to follow the spirit of the constitu- 
 tion rather than the strict letter of its provisions; and I have pointed 
 out again and again the oft-recurring phrase in the Constitution which 
 makes the decision of the Board of Directors in a Section final and 
 conclusive as to proof of alleged facts. At this moment I can hardly 
 recall a single instance in which a Section, or the Association as a 
 whole, deliberately disregarded my advice, and I attribute this con- 
 dition to the belief that the employes, because they realized their own 
 power in the premises, proceeded naturally with care and were con- 
 sequently willing and anxious to seek and take counsel. To make the 
 members of the Association still more conservative and deliberate 
 in the disbursements of the funds, I have taken every opportunity to 
 remind them of the fact that they themselves are paying for all 
 benefits out of their weekly dues, without any contribution on the part 
 of the Company, and that, therefore, the whole responsibility for and 
 duty of maintaining the Association in good condition and on a 
 sound financial basis, must rest squarely on the shoulders of the 
 members themselves. It must not be inferred from this statement, 
 however, that the General Electric Company does not take an ade- 
 quate financial interest in the Association, for the Company bears 
 the whole administrative expense, which includes the payment of 
 wages to the secretaries for the time consumed in collecting dues, 
 and to members of the Board of Directors when in attendance at 
 monthly or special meetings. The Company has repeatedly expressed 
 
VOLUNTARY RELIEF IN THE UNITED STATES 423 
 
 its willingness and desire to contribute to the funds of the Associa- Company's Aid 
 tion, but such offers have always been declined by me with thanks. 
 In doing this I believe I have acted in accordance with the wishes 
 of the members at large, whose natural pride has prompted the de- 
 sire to maintain their own organization for their own direct benefit 
 and by their own efforts, as long as this can be done without any 
 outside assistance. 
 
 A recent extension of the scope of work of the Association is meet- special Loan 
 
 ing with much approval. Heretofore a disabled member was ade- ^^^^ Grants 
 
 Temporary 
 
 quately taken care of through benefits paid by his Section, and, where Loans to 
 
 Worthy 
 necessary, through emergency benefits from the general fund. Menir Members 
 
 hers in good health, however, could not obtain any financial assistance 
 from the Association, although they might be much in need of such 
 assistance, especially after a prolonged period of disability. It was, 
 therefore, decided to establish the "Loan Fund of the T. H. M. B. 
 Association," which shall, under proper regulations and restrictions, 
 grant temporary loans to worthy applicants. Accordingly, it was 
 arranged to divert $1,000 of the proceeds of the next entertainments 
 of the Association to the Loan Fund, which amount may be in- 
 creased at some future time upon proper authority of the Emergency 
 Fund Committee. The Loan Fund has been placed in charge of a 
 Board of three Trustees, with the General Chairman as Chairman and 
 Treasurer, and the two other Trustees selected by and from the mem- 
 bers of the Emergency Fund Committee. 
 
 Any member of the Association in good standing who has been 
 
 Association 
 
 a member for at least one year, shall be entitled to a temporary loan. Fully 
 
 Protected 
 
 which shall be paid back without interest in such weekly instal- Against Loss 
 
 ments, by order on the Paymaster, as the Board of Trustees may 
 
 decide. A member receiving a loan must, however, agree that in 
 
 case of his death prior to the cancellation of the loan, the then unpaid '• 
 
 amount of the loan shall be deducted from the death benefit of $100 
 
 due him from the Association. In specially needy cases, of course, 
 
 where the heirs of the deceased should receive the full amount of 
 
 $100, it will be within the province of the Emergency Fund Com- 
 
424 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Membership 
 Increased from 
 100 to 5000 
 In Eight Years 
 
 Association 
 Financially 
 Sound 
 
 mittee to grant an emergency death benefit equal to the amount 
 withdrawn for the concellation of the loan. The Loan Fund is there- 
 fore protected fully in regard to members who might die before the 
 cancellation of the loan and those who remain in the service of the 
 Company. Only when members leave the service of the Company 
 before having repaid the loans granted to them, is ^he Loan Fund in 
 danger of loss; yet the number of such instances can be minimized 
 by proper care on the part of the Board of Trustees in investigating 
 the requests for loans. 
 
 The Thomson-Houston Mutual Benefit Association was founded 
 eight years ago with one Section and 100 members; during the 
 following years the membership increased steadily, except during the 
 year 1907-8, when business depression necessitated the suspension of 
 many employes. On October 1, 1910, the Association could boast of 
 4,785 members distributed over 33 Sections, and since that time the 
 membership has been further augmented, and today includes fully 
 5,000 employes. This represents a very gratifying proportion of the 
 total number of employes, — about 10,000, — considering the always 
 present floating element among employes who have no desire to 
 join such an organization, and the rather large number of those 
 already insured against disability and death through fraternal organ- 
 izations or insurance companies. Furthermore, it should be remem- 
 bered that the Lynn works employ nearly 2,000 working girls who, 
 as a class, are not educated up to the value of insurance and are not 
 trained for co-operative effort. The influence of the Association will, 
 no doubt, make itself felt more and more as time goes on, and it is 
 hoped that eventually most of the employes will be included in its 
 membership. 
 
 Should we desire to measure the success of the Association, we 
 would naturally turn to figures as representing the financial benefits 
 distributed among the members. Thus, we find that the Association 
 disbursed during the year which ended on October 1, 1910, $17,459.65, 
 of which $14,163.80 were paid for disability benefits to 690 beneficiaries, 
 $495.85 for emergency benefits, and $2,800 for death benefits to the 
 
VOLUNTARY RELIEF IN THE UNITED STATES 425 
 
 legal heirs of 28 deceased members; yet the treasuries of the Associa- 
 tion contained $8,502.58 of unexpended moneys when the new fiscal 
 year opened. The financial value of the mutual insurance plan, how- 
 ever, is still better illustrated by the distribution of $92,962.35 during 
 the eight years of the Association's existence, of which $77,176 were 
 paid for disability benefits to 2,862 beneficiaries, $1,139.85 for emer- 
 gency benefits, and $14,646.50 for death benefits to the legal heirs 
 of 149 deceased members. This is indeed a splendid tribute to the 
 usefulness of the Association, and its significance lies in the fact that 
 this large sum of money was contributed entirely by the employes 
 themselves, who willingly paid over their 10-cent pieces week by week 
 in order that they might thereby assist their more unfortunate co- 
 workers, and, at the same time, make some provision for themselves 
 should periods of distress befall them. 
 
 These figures, big as they are, however, reveal only one side of Rgjations 
 
 the picture; the other side has to do with the spirit of fellowship Between 
 
 Company and 
 
 which has grown up among the members of the Association, and Employes 
 
 Improved 
 
 with the friendly relatioub which have been fostered between the 
 
 Association as a whole and the Company. This value should not be 
 underrated. 
 
 Many plans have been suggested for an extension of the scope and 
 usefulness of the Association, and there is well-grounded hope that 
 some of these will be carried into effect before long. One of the 
 plans advocates the purchase of a suitable farm by the Association, 
 which would serve as a home and outdoor working place for con- 
 valescent members, and also as a vacation resort; it is hoped 
 at the same time that, with scientific farming and the sale of the farm 
 products to the factory restaurant of the Lynn works, the farm may 
 also yield an additional revenue to the Association. 
 
 Another plan contemplates the establishment of lecture courses. Association's 
 
 through which the members may be afforded the pleasure of increased Scope to be 
 
 Extended 
 knowledge on interesting subjects of timely importance, and receive 
 
 instruction in first aid treatment of injured persons, the use of safety 
 
 appliances, and the prevention of accidents. 
 
426 
 
 ACCIDENT PREVENTION AND RELIEF 
 
 Association 
 Governed 
 Like a 
 Democracy 
 
 The Thomson-Houston Mutual Benefit Association at West Lynn, 
 Mass., represents truly a democracy— a government of the members, 
 by the members, and for the members. Not unlike the United States 
 of America (if such presumptuous comparison may be permitted), 
 the Association is composed of individual self-governing Sections, each 
 bearing the cost of its own administration and being supported for 
 this purpose by taxation of its own members. All Sections are operat- 
 ing under the constitution of the Association, and the interpretation 
 of the provisions of the constitution and the power of enforcing its 
 observance by all Sections have been lodged with a central department, 
 that of the general chairman. Finally, as the individual states of the 
 Union have delegated to the Federal government certain functions, 
 like the conduct of the postal system, so have the Sections delegated 
 to the Association as a whole the payment of death benefits and 
 emergency benefits, as well as other matters that can better be at- 
 tended to by the whole Association than by individual Sections. 
 
INDEX 
 
INDEX 
 
 A 
 
 PAGE 
 
 Accident Compensation, a public debt in Germany 49 
 
 compared with employers' liability in Germany 293 
 
 Contribution of Swiss Government to 58 
 
 Growth of the principle in Germany 37 
 
 Societies in England put out of business by Acts of 1897 
 
 and 1900 177 
 
 system rests with Employers' Associations in Germany .... 26, 45 
 
 The "Doctor Question" in 54 
 
 Total expenditures in Germany for fig. 10, p. 47 
 
 Infe(?tious diseases classed in Great Britain, as 199 
 
 Insurance a necessity in Germany 307 
 
 Advisability of workers contributing to fund in Germany 58 
 
 Agriculturists should contribute to 281 
 
 companies in Great Britain find difficulty in adjusting rates. . 228 
 
 cost of operating in Germany 47, 147 
 
 costs based on industry hazard and extent of prevention efforts 
 
 in Germany 65 
 
 Deferred payments in German 40 
 
 Estimated cost for 50 years in Germany 147 
 
 First Bill before Reichstag in 1881 7 
 
 includes agricultural and horticultural workers in Grermany. 
 
 (frontispiece) 
 
 laws have strengthened trade unions 293 
 
 operated by employers on mutual basis 45, 48, 274 
 
 Organization receipts, expenditures and funds fig. 8, p. 36 
 
 principles of German Employers' Associations 8 
 
 private, expensive and inefficient in Germany 308 
 
 probably menaced by new government Bill in Germany 296 
 
 Proportion of cost borne by workers in Germany for 57 
 
 Workers' contribution large enough in German 281 
 
 Workers in Germany have no part in management of 306 
 
 Insurance system, Accurate statistics essential in 268 
 
 benefits charitable associations in Germany 286, 288 
 
 Contributory principle in the German 57 
 
 Empiloyers' Associations in Germany responsible for administra- 
 tion of 28 
 
 First year of German 33 
 
 has approval of Germany 287 
 
 includes agricultural workers in Germany 287 
 
 429 
 
430 INDEX 
 
 PAGE 
 
 Accident Insurance System not favored by Socialists 288 
 
 Objections of workers in Germany to 31 
 
 Radical changes not desired in Germany in 292 
 
 Reforms of Emperor William I, in the German 33 
 
 regarded as ideal, in Germany 282 
 
 satisfies employers in Germany 31 
 
 satisfies workers in Germany 282 
 
 should include agricultural industries ...... 302, 306, 310, 312, 315 
 
 Laws strengthen trade unions in Germany • 293 
 
 Litigation contrary to public welfare 3 
 
 Influence, socially, on the workers, of 293 
 
 Meaning of term, a question of law in Great Britain 197 
 
 mental shock, in Great Britain held to be an 201 
 
 Prevention absolutely necessary in United States 112 
 
 a business proposition 99, 100, 112^ 
 
 advanced in Germany by payment of premiums for safety 
 
 devices fig. 43, facing p. 101 
 
 compulsory under German law 28^ 
 
 conditions not improved in England by Compensation Acts 
 
 of 1897 and 1900 17& 
 
 considered by agricultural Employers' Associations in Germany 99- 
 
 Co-operation of legislators in United States needed for 112" 
 
 Cost of, in Germany fig. 43, facing p. 101 
 
 eflSciency dependent on workers' contributions 58 
 
 Exhibitions in Europe strong factors in 118. 123 
 
 fund in honor of German Emperor 102 
 
 German trade schools give instruction in 127 
 
 Importance of, in the United States 99* 
 
 in Germany in chemical industry fig. 45, p. 104 ; fig. 50, p. 108- 
 
 in Germany in combined industries. . .fig. 44, p. 103; fig. 49, p. 108 
 in Germany, in glass, pottery and brick industry 
 
 fig. 48, p. 107; fig. 51, p. 109 
 in Germany, in iron and steel industry. fig. 47, p. 106; fig. 52, p. 109 
 in Germany, in mining industry 
 
 fig. 46, p. 105; fig. 53, p. 110; fig. 54, p. Ill 
 
 inseparable from compensation 20 
 
 Institution in Amsterdam, oldest in Europe 118 
 
 Interest manifested in Germany upon subject 101 
 
 laws in Germany require machine parts to be made standard . . 12J^ 
 
 Magnitude of Germany's system for 33 
 
 methods strictly enforced in Germany 317 
 
 more important than compensation in Germany 9, 29, 260 
 
 not considered in Great Britain in Act of 1906 2.50 
 
 on practical basis in Germany 314 
 
 progress not rapid in Germany ^ 102 
 
 regarded as better than cure, in Germany 276 
 
 regulations in Germany legally drafted by special commissions. 31 
 
 spirit is strong in Germany 12^ 
 
 scientific, an important branch of technical engineering in 
 
 Germany 100, 276 
 
 Value of efiicient medical aid in 260 
 
 Views of Institution at Vienna for figs. 67 and 68. p. 119 
 
 Record of new cases in Germany .34, 103 
 
INDEX 431 
 
 PAGE 
 
 Accidents due to carelessness in teaming fig. 122, p. 393 
 
 Emplo3'ment should bear economic consequences of 6, 259 
 
 employer should provide medical aid in 265 
 
 from street openings, prevented by safety cover fig. 66, p. 118 
 
 German workers compensated for unpreventable 46, 47, 259 
 
 more speedy method of adjusting claims needed 259 
 
 Accidents in Canada, fatal and non-fatal (table) 377, 378 
 
 Accidents in Germany. 
 
 all wage workers insured against 33, 302 
 
 Among farm hands from falls fig. 30, p. 88. 94 
 
 analysis of .• 107 
 
 caused by feed cutting machines fig. 35, p. 91 
 
 caused by threshing machines fig. 36, p. 91 
 
 causes and frequency of 55 figs. 41 and 42, p. 94 
 
 causes of increase in 27, 52, 110, 112 
 
 comparative statistics on 95 
 
 comparison of industrial and agricultural 71, 86 
 
 compensation during last 25 years, for 33 
 
 compensation not necessary for minor 313 
 
 compulsory insurance against 11, 83 
 
 concentrated efforts of experts to reduce slight 53 
 
 cost placed on manufacturers for 283 
 
 Death rate increased by occupational 35, 107 
 
 deaths in 1905-07 from occupational fig. 7, p. 36 
 
 decrease of farm 87 
 
 Disastrous to small employer 64 
 
 due to fault of employers and workers 55 
 
 due to hazard of occupation 55 
 
 farmer a factor in 85, 86 
 
 frequency and results of (frontispiece) 86 
 
 frequency of, according to age and sex fig. 20, p. 69 
 
 frequency of, according to days and hours fig. 19, p. 68 
 
 frequency of, according to days of week fig. 22, p. 71 
 
 frequency of, from animals in Germany fig. 42, p. 94 
 
 from Farmers' horsepower machinery figs. 37 and 38, p. 92 
 
 growth of compensation for fig. 9, facing p. 36 
 
 importance of preventing serious 53 
 
 Increase of slight cases reported 52 
 
 legal provision for workers injured by 28 
 
 of less than 13 weeks' duration fig. 14, p. 52 
 
 of more than 13 weeks' duration., .fig. 14, p. 52; fig. 24, facing p. 83 
 
 partial permanent disability from occupational fig. 27, p. 84 
 
 penalties provided for not reporting Ill 
 
 pensions granted injured workers for fig. 9, facing p. 36 
 
 permanent and complete disability caused by occupational . fig. 26, p. 84 
 
 per 1.00 insured workers, all industries fig. 114, p. 146 
 
 persons insured against 33 
 
 principle of compensating workers for 55 
 
 promptly reported by employers and associations 110 
 
 ratio of light to serious 52 
 
 responsibility for occupational figs. 15 and 16, p. 55 
 
 sickness and invalidity insurance 39, 49 
 
 temporary disability from occupational, in 1908 fig. 28, p. 85 
 
432 INDEX 
 
 Accidents in Great Britain. PAGE 
 
 "arising out of and in the course of employment" 195 
 
 authoritative interpretation of term, by House of Lords 198 
 
 Burden of proof rests upon applicant 195 
 
 Discrepancies in factory 220 
 
 early difficulties of interpretation 198 
 
 locality of, considered under Act of 1906 194 
 
 notice required • 187 
 
 personal injury by t ^^" 
 
 responsibility for 5 
 
 Accidents in Switzerland, proposed bill covering all 58 
 
 Act of 1897 in Great Britain, Lack of Statistical data on 212, 224 
 
 Act of 1906 in Great Britain, Estimate of number of persons cov- 
 ered by 215 
 
 increased field of insurance activity 230 
 
 increased liability over Acts of 1897 and 1900 235 
 
 Information required and not required from employers under 217 
 
 insurance rates under 231 
 
 Litigation under 223 
 
 official inquiry into operation of, inconclusive 224 
 
 operations during years 1908 and 1909 215, 217 
 
 Provision for compiling information respecting 213 
 
 Statistics show burden of 220 
 
 Actuarial problems of Compensation Acts of Great Britain 246 
 
 Administration expense of Germany 48 
 
 Agricultural Accidents. 
 
 according to age and sex, in Germany , 70 
 
 cause and frequency of, in Germany fig. 41, facing p. 94 
 
 caused by vicious animals, in Germany fig. 32, p. 89 
 
 compared with Industrial accidents in Germany 71, 86, 87 
 
 partial permanent disability from, in Germany fig. 27, p. 84 
 
 percentage of 264 
 
 permanent and complete disability from, in Germany. fig. 26, p. 84 
 
 responsibility for, in Germany fig. 16, p. 55 
 
 Resulting from cutting and hauling timber, in Germany. 
 
 fig. 34, p. 90 
 
 Resulting from teaming, in Grermany... fig. 33, p. 90 
 
 statistics of German 25, 64 ; fig. 84, p. 136 
 
 temporary disability from, in Germany fig. 28, p. 85 
 
 Agricultural workmen in Great Britain, under Act of 1906 192 
 
 ailments, German prevention of imaginary 51 
 
 Agriculture. 
 
 a hazardous industry in Ehigland 171 
 
 Co-operation in Germany of Industry and 294, 317 
 
 Hazard of, in United States greater than in Germany 93 
 
 Hazard of, must be considered 87 
 
 included in German compensation laws (frontispiece), 26, 287 
 
 should form part of any national accident insurance system. 
 
 302, 306, 310, 312, 315 
 
 Alberta, compensation laws established in 15 
 
 Alexander, Magnus W. : Mutual Insurance plan of the General Elec- 
 tric Company 415 
 
 American and British compensation, comparative 166 
 
INDEX 433 
 
 PAGE 
 
 American and European employers, co-operation between 273 
 
 Amsterdam accident prevention institution, oldest in Europe 118 
 
 Animals, dangerous, must be guarded in Germany fig, 31, p. 89 
 
 Appeal und-er Act of 1906 in Great Britain 188 
 
 Arbitration Court Awards in important matters may be appealed 
 
 from in Germany 77 
 
 decisions in Germany — confirmed or changed by Court of Last 
 
 Resort fig. 23, p. 78 
 
 decisions in Germany made by a majority of three out of five votes. 76 
 
 Employes' appeals to, in Germany fig. 23, p. 78 
 
 expenses in German compensation cases borne in part by state .... 77 
 
 fair and impartial in Germany 78 
 
 for settling compensation disputes, in European countries 
 
 fig. 5, p. 15. .265, 266 
 
 judges in Germany selected from industry in which accident 
 
 happened 76 
 
 second step in the German compensation system 76 
 
 Arbitration, judicial, of compensation claims in Great Britain 221 
 
 under Act of 1906 in Great Britain 187 
 
 Asquith, Mr., measures to secure abolition of doctrine of common em- 
 ployment in England 169 
 
 Associations, voluntary relief, in the United States 381 
 
 Australia, compensation laws establisTied in 15 
 
 Austria, insurance associations in 13 
 
 Austria, insurance in mutual companies, compulsory in. .. .fig. 3, p. 13, 65 
 
 Austria, simplified court procedure in fig. 5, p. 15 
 
 Austria, Territorial system of insurance in 319 
 
 Austria, workmen or state contribute in fig. 4, p. 14 
 
 B 
 
 Bavarian Building industries Employers' Association 51 
 
 Belgium, compensation laws established in 15 
 
 employers pay whole compensation in fig. 4, p. 14 
 
 optional insurance for workers in fig. 3, p. 13 
 
 simplified court procedure in fig. 5, p. 15 
 
 Benefits paid injured workers during 1908 in Germany 34 
 
 Bengsch, Franz, Chairman East German Inland Navigation Elhiployers' 
 
 Association 297 
 
 Berlin, Accident Prevention Institution in 120 
 
 Beven, Thomas, on Workman's compensation legislation in Great Britain 207 
 
 Bismarck, Prince, and German manufacturers 37 
 
 effect of policies 7 
 
 prime mover in German compensation reform 26 
 
 statement on freedom of organization and obligatory results in 
 
 Germany 278 
 
 success in compensation legislation due to personality of 274 
 
 Blum, E. : Chairman Board of Directors, Northeastern Iron and Steel 
 
 Employers' Association 306 
 
 Boediker, Doctor, first president of German Imperial Insurance Ofiice. . 7 
 Brabrook, Sir Edward, late Chief Registrar of Friendly Societies in 
 
 Great Britain 254 
 
434 INDEX 
 
 PAGE 
 
 Brandeis, Louis 55 
 
 Brewers' and Malsters' Association of Germany 310 
 
 Brewing and Malting in Germany, frequency and results of accidents 
 
 in (frontispiece) 
 
 Industry, injured workers in fig. 83, p. 135 
 
 Brick making in Germany, frequency and results of accidents in 
 
 (frontispiece) 
 
 industry, injured workers in fig. 109, p. 144 
 
 British and American compensation, comparative ^ 16G 
 
 British Columbia, compensation laws established in 15 
 
 Brown, Stanley, manager of Employers' Liability Insurance Company 
 
 of Great Britain 235 
 
 Budapest : accident prevention institution in 120 
 
 Building Industries, Bavarian, Employers' Association 51 
 
 comparison of accidents in, with agricultural, in Germany 86 
 
 comparison of New York and German insurance rates 
 
 fig. 11(3, p. 152 
 
 frequency and results of accidents in, in Germany (frontispiece) 
 
 hazardous occupations in 83 
 
 included in German compensation laws 26 
 
 injured workers in, in Germany fig. 92, p. 138 
 
 rates of insurance before and after enactment of Law of 1910 in 
 
 New York fig. 115, p. 1 51 
 
 Building, workmen on, under Act of 1906 in Great Britain 192 
 
 C 
 
 Canada, compensation laws established in 15 
 
 Fatal and non-fatal accidents by trades in (table) 377, 378 
 
 Carelessness, human, not prevented by safety appliances 103 
 
 Cause and frequency of agricultural accidents in Germany ... fig. 41, p. 94 
 
 Central Federation of German Industrialists 326 
 
 Chamberlain, Joseph, on Act of 1897 9, 169 
 
 Charity associations in Germany benefited by accident insurance sj'stems 286 
 
 Charity, public, relieved by accident insurance system of Germany 288 
 
 Chemical industry in Germany, accident prevention in 
 
 fig. 45, p. 104; fig. 50, p. 108 
 
 Frequency and results of accidents in (frontispiece) 
 
 Injured workers in fig. 104, p. 142 
 
 Rates before and after enactment of Law of 1910 in New York, 
 
 in fig. 115, p. 151 
 
 Cheney Brothers Silk Mills, South Manchester, Conn fig. 130, p. 400 
 
 Industrial insurance and old age pension system at 401 
 
 Cheney, Howell, of Cheney Brothers, South Manchester, Conn., state- 
 ment by 401 
 
 Chimney sweeping in Germany, frequency and results of accidents 
 
 in (frontispiece) 
 
 Civil Law of Europe, Contributory negligence formerly not a liar to 
 
 recovery under 163 
 
 Claims, compensation, adjustment of 266 
 
 Filing of, in Great Britain 187 
 
 Judicial arbitration of, in Great Britain 221 
 
 Mode of collecting in Great Britain 187 
 
 promptly adjusted in Great Britain under Act of 1906 206 
 
INDEX 435 
 
 PAGE 
 
 Class hatred eliminated by German compensation system 300 
 
 Clerks under Act of 1906 in Great Britain 192 
 
 Clothing industry, frequency and results of accidents in Germany, in 
 
 (frontispiece) 
 
 Injured workers in Germany, in fig. 87, p. 137 
 
 Collective responsibility in Germany 28 
 
 Collie, Doctor, authority on medico-legal aspects of Compensation Act 
 
 of Great Britain 234 
 
 medical referee of the English Home Office 254 
 
 Commerce and Labor, statement by Secretary of 381 
 
 Commissions in Germany, workers are represented in 31 
 
 Committee on Industrial Liability Insurance and Accident Prevention 
 of the National Association of Manufacturers, findings and 
 
 recommendations of 259 
 
 Common ■employment in England, agitation for abolition of defense of. . 163 
 Common Law in I^ngland, basis of present American liability laws. . . 157 
 
 first statutory modification of 161 
 
 Comparative hazard of industry and farm in Germany 
 
 figs. 24-25, facing p. 83 
 
 Compensation, accident prevention inseparable from 20 
 
 administration by contributors or state, the best method of. ...262, 263 
 comparative value of American, British, and Germans systems 
 
 of \. 150, 166 
 
 Comparison of insurance rates in New York and Germany, for 
 
 fig. 116, p. 152 
 
 Dates of establishment of laws, in various countries for 15 
 
 Difficult to make equitable rates of . 66 
 
 Limitation of period of 265 
 
 Mutual principle will lessen cost of 67 
 
 Principle should apply to all employments 264 
 
 Uniform principles needed in United States for 266 
 
 Compensation in Europe. 
 
 Contributory principle in ' 14 
 
 Countries in which employers pay all fig. 4, p. 14 
 
 Countries in which workers or state contribute to fig. 4. p. 14 
 
 disputes, settled by simplified court procedure fig. 5, p. 15 
 
 Financial responsibility, of employers for 63 
 
 Insurance the best guarantee of 63 
 
 Judicial settlement of claims for -.15, 266 
 
 laws for injured workers in all European countries but Switzer- 
 land fig. 2, p. 12 
 
 legislation proceeds from carefully compiled information 211 
 
 not regarded as complete indemnity 265 
 
 practically all employments included in 19 
 
 provides for expeditious adjustment of claims 265 
 
 systems in European countries fig. 2, p. 12 
 
 The ^'Doctor Question" in 54 
 
 through compulsory insurance fig. 3, p. 13 
 
 Compensation in Germany. 
 
 Accident verdicts for, disastrous to small employers 64 
 
 a public debt to injured workers 49 
 
 burden placed upon each industry in Germany 64 
 
 Economic and legal basis of 27 
 
436 INDEX 
 
 PAGE 
 
 Compensation in Germany for accidents to workers 33, 47, 99 
 
 lessened by medical equipment of Vienna Institution 51 
 
 less important tlian accident prevention 29 
 
 Method of determining amount of 75, 76 
 
 Method of payment of 31, 78 
 
 not necessary for minor accidents 313 
 
 Pensions granted to injured workers for fig. 9, p. 36 
 
 Prince Bismarck, prime mover in reform in. 26 
 
 Principle of ^ 55 
 
 Proportion of costs borne by workers for 57 
 
 Right of injured workmen to 28 
 
 Small employers strive for high rate of, for injured workers 78 
 
 temporary, for minor accidents 299 
 
 Compensation Claims in Germany, judicial settlement of. ...fig. 23, p. 78 
 
 Percentage of disputed 78 
 
 Compensation Fund in Germany, based upon industrial hazard and pre- 
 vention efforts 65 
 
 Government contributes to 49 
 
 Workers have no voice in the administration of 58 
 
 Insurance in Germany, an aid to prosperity 277 
 
 appreciated by workers 280, 298 
 
 costs of, to employers 132 
 
 Decision by employers' association commission, first step in . . 75 
 
 does not strengthen trade unions 301, 309, 314 
 
 during past 25 years 33 
 
 effect of on manufacturers 295 
 
 eliminates distress, misery, and class hatred 295, 300 
 
 Employers wish to continue 312 
 
 Expense of administration of fig. 11, p. 47, 48, 147 
 
 -fatal to socialistic doctrines 317 
 
 Financial responsibility of employers for 63 
 
 First year of 33 
 
 increases confidence of workers in employers 301 
 
 Influence on workers of 275 
 
 lessens workmen's sense of responsibility 295 
 
 protects employes and employers 300, 320 
 
 Theory of 56 
 
 Total expenditures for fig. 10, p. 47 
 
 versus employers' liability 293 
 
 legislation in Germany, administered by employers, under state 
 
 supervision 26, 46 
 
 an authority 22, 297 
 
 effect of, on trade unions 317 
 
 First enactment of 26 
 
 Relation of injured workmen to 251 
 
 First revision of 26 
 
 system in Germany comprehensive 36, 37, 284, 302 
 
 does not interfere with self-government 279 
 
 Growth of fig. 9, p. 36, 37 
 
 Medical attention a part of 48 
 
 most beneficial legislation ever enacted 296 
 
 must have definite date for payment to be successful 67 
 
 satisfies manufacturers 303, 311 
 
INDEX 437 
 
 PAGE 
 
 Compensation (in Great Britain). 
 
 Act of 1897, amendment of Mr. Chamberlain to 169 
 
 Burden of compensation upon employer not excessive in 178 
 
 Conditions of 169, 170, 171 
 
 created less liability than Act of 1906 235 
 
 experimental in character 171 
 
 first compensation measure passed by Parliament 169 
 
 Imperfections of 172, 173 
 
 Operations unrecorded 173^ 174 
 
 repealed in 1906 172 
 
 Spirit of , : 250 
 
 Acts of 1897 and 1900, affected employment of elderly or maimed 
 
 persons 179, 180 
 
 involved less liability to employers than Act of 1906 235 
 
 productive of litigation 175, 176 
 
 Remedies suggested by departmental committee for 180 
 
 Societies destroyed by 177 
 
 Unoercainty as to liability of employers, under tlie 178 
 
 Act of 1906, Amount of compensation under 186, 193 
 
 Compensation and medical examination subject to revision 
 
 under 188 
 
 discourages contracts outside of its terms 242 
 
 does not require medical attention 250 
 
 Effect upon employment of elderly and defective men, by. .253, 254 
 
 Insurance rates under the (table) 232, 233 
 
 Loss from underwriting risks under 235 
 
 preferred by workmen to Employers' Liability Act 223 
 
 Statistics and proceedings of 215 
 
 Summary of decided principles of 202 
 
 Text of the 331-351 
 
 unworthy of imitation in many features 255, 266 
 
 claims in Great Britain, affected by serious and willful miscon- 
 duct 203, 260 
 
 Employers personally liable for 170 
 
 Filing of 187 
 
 Judicial settlement of 206, 221 
 
 may be enforced by ordinary process of execution 187 
 
 not barred by recklessness 204 
 
 Insurance, Amount paid during 1909, for 227 
 
 Increases in tariff rates for (table) 236 
 
 carried at a loss 237 
 
 Erroneous computation of cost of 219 
 
 includes industrial diseases 205 
 
 position of underwriters in 246 
 
 Legislation, Actuarial problems of 246 
 
 Circumstances producing 249 
 
 first measure did not provide insurance fund 169 
 
 increases demand for liability insurance 227 
 
 influenced by trade unions 249 
 
 Liability of employers before adoption of 157 
 
 Primal defects of 249, 253 
 
 proceedings not limited as to time 206 
 
 secured by workmen after action at law 189 
 
438 INDEX 
 
 PAGE 
 
 Compensation statistics in Great Britain, conclusions on 224 
 
 Incompleteness of 218, 224 
 
 Suicide bars recovery of 203 
 
 under Act of 1880 1C5 
 
 Compensation in Switzerland, government contribution to 58 
 
 Compensation in United States 
 
 Adjustment of 269 
 
 American workmen entitled to 5 
 
 rates in New York must be increased § 151 
 
 rates in Ohio 152 
 
 recognition of, principle of 48 
 
 Restricted statute of 18 
 
 Sound policy a prime consideration in 266, 267 
 
 Voluntary action by emploj-ers should receive encouragement 267 
 
 Will attract farm labor 94 
 
 Competition, obligatory workers' insurance has reduced unfair 38 
 
 in Germany prevented by uniform distribution of burden 308 
 
 Compulsory insurance, European countries protecting all wag€ work- 
 ers fig. 3, p. 13 
 
 European countries, protecting part of wage earners. ,. .fig. .3, p. 13 
 
 growth of, in Europe fig. 3, p. 13, 65 
 
 recommended in Germany 313 
 
 Compulsory standards for machinery enforced in German accident pre- 
 vention system 128 
 
 Compulsory versus voluntary insurance in Germany 319 
 
 Constitution of United States exercises sharp restraint on legisla- 
 tures 20, 21 
 
 Contracting out of the Act of 1906 in Great Britain 186, 243 
 
 Contributions by employes, value of 263 
 
 equitable adjustment of compensation and 56 
 
 joint, fosters harmonious relations between employers and workers. 57 
 
 Contributions, employers', in Germany fig. 17, p. 58 
 
 Contributions, workers', in Germany, a negligible quantity 305 
 
 in Germany, necessary 294, 311 
 
 in Germany, to mutual social insurance fig. 13, p. 49 
 
 in Germany, proportion to employers' fig. 17, p. 58 
 
 in Germany, satisfactory 310, 317 
 
 in Germany, simplify practical working of system 315 
 
 Contributors in Germany, representative powers of 58 
 
 Contributory insurance distinct from personal liability 20 
 
 negligence formerly not a bar to recovery under Civil Law of 
 
 Europe 163 
 
 principle, a lawyer's view of 55, 56 
 
 in Europe fig. 4, p. 14 ; fig. 17, p. 58 
 
 mutual, as proposed in Switzerland fig. 18, p. 58 
 
 Co-operation between employers and insurance companies may decrease 
 
 insurance uates 65, 66 
 
 of agriculture and industry in Germany 294 
 
 of legislators in accident prevention necessary in the United States. 112 
 
 of wage workers important 55 
 
 Correct method of removing twine from shaft of spinning ma- 
 chine fig. 129, p. 398 
 
 Craft organizations in Germany, employers compelled by law to join.. . 8 
 
INDEX 489 
 
 Dairy, DistilleiT and Starch Industries in Germany, frequency and 
 
 results of accidents in (frontispiece) 
 
 22 years' German history of injured workers in fig. 86, p. 136 
 
 Damage suits eliminated in Germany 314 
 
 Dangerous animals, must be guarded, in Germany fig. 31, p. 89 
 
 parts of machinery painted red, in Germany fig. 29, p. 88 
 
 Death Causes in German^-, in 1905-07 fig. 7, p. 36 
 
 Deaths in Germany, growth of, compensation, for accidental, .fig. 9, p. 36 
 
 from diseases in 1905-07 fig. 7, p. 3G 
 
 from occupational accidents 
 
 fig. 6, p. 35; 'fig. 7, p. 36; fig. 25, facing p. 83 
 Decisions by Arbitration Courts in compensation claims, in Ger- 
 many fig. 23, p. 78 
 
 by Court of Last Resort (Senate) in compensation claims in 
 
 Germany fig. 23, p. 78 
 
 by Employers' Associations in compensation claims in Ger- 
 many fig. 23, p. 78 
 
 effect on rates in Great Britain of judicial 230 
 
 Denmark, compulsory insurance for part of wage workers in. .fig. 3, p. 13 
 
 simplified court procedure in fig. 5, p. 15 
 
 workmen or state contribute in fig. 4, p. 14 
 
 Debtors' Act of 1869 in Great Britain 187 
 
 Departmental committee of 1904 in England, investigation and findings 
 
 by the 175, 176, 177, 178, 179, 180, 181, 182 
 
 Dependents in Great Britain entitled to compensation under Act of 1906 186 
 Devices, life saving, in German accident prevention, premiums paid 
 
 for fig. 43, facing p. 101 
 
 Disability, partial permanent, from occupational accidents in Ger- 
 many fig. 27, p. 84 
 
 permanent and complete, caused by agricultural accidents in Ger- 
 many fig. 26, p. 84 
 
 permanent and complete, caused by occupational accidents in Ger- 
 many fig. 26, p. 84, 107 
 
 temporary, caused by occupational accidents in Germany, in 
 
 1908 fig. 28, p. 85, 107 
 
 Disease in Great Britain, employer liable for 231, 255 
 
 Diseases, deaths from, in Germany, in 1905-07 fig^ 7, p. 36 
 
 industrial, compensation for in Great Britain 205 
 
 infectious, classed as accident in Great Britain 199 
 
 Occupational, in Great Britain, Marked increase in 221 
 
 Distillery, dairy, and starch industries in Germany, frequency and re- 
 sults of accidents in (frontispiece) 
 
 Doctrine of common emplo.vment, English 
 
 '•fellow servant" established by Chief Justice Shaw in the United 
 
 States in 1842 162 
 
 "fellow servant" in England, established in Priestly vs. Fowler 
 
 case 162, 164 
 
 personal liability in Great Britain 249 
 
 Domestic service, statistics in Germany 25 
 
 statistics in United States 25 
 
 Drew, Walter : Farm Hazards in the United States 93, 94 
 
 Drivers and conductor under Act of 1906 in Great Britain 192 
 
440 INDEX 
 
 E 
 
 PAGE 
 
 East German Inland Navigation Employers' Association 297 
 
 Education, inspection and accident prevention essential to successful 
 
 system 267 
 
 Efficiency, interest increasing in national 4 
 
 judicial, high character of British 206 
 
 of accident prevention in Germany dependent upon workers' con- 
 tributions 58 
 
 of German insurance system ^ 47 
 
 of German workers, policy to increase 147 
 
 of the Germany system of compensation for occupational accidents. 47 
 
 of workers in Germany increased by industrial relief 101 
 
 required in Medical attendants in Germany 53 
 
 Electrical and mechanical trades in Germany, frequency and results of 
 
 accidents in (frontispiece) 
 
 statistics of 38 
 
 Electro-magnets for safely loading and unloading scrap iron . . fig. 74, p. 124 
 
 Elevators and lifting engines in Germany, causes and frequency of acci- 
 dents by fig. 42, facing p. 94 
 
 Emery wheels, injuries from carelessness while using fig. 123, p. 394 
 
 with safety guards for protecting workers' limbs fig. 62, p. 115 
 
 Emperor William I of Germany, Accident insurance reform of 33 
 
 Employe, right of action in England formerly ended with death of . . . . 160 
 
 insurance systems strive to bring together employer and 20 
 
 regarded as an unknown hazard in Great Britain by employer. . . . 253 
 
 Employer and employe benefited by Germany's compensation system . . . 278 
 
 general fortunes of 4 
 
 Ehnployer, bound at common law not to expose workmen to unnecessary 
 
 risk 159 
 
 Employer (individual), not burdened with compensation in Germany.. 64 
 
 protected by organization 30 
 
 Employer in Germany must join compensation association in his 
 
 industry 28 
 
 pays 33 per cent, of sickness funds 76 
 
 Employer in Great Britain an instrumentality to relieve indigence.. 250 
 
 forced to regard employe as an unknown hazard 253 
 
 formerly indemnified injured workmen on establisliment of liability 160 
 formerly relieved of liability if injured man had agreed to take risk 
 
 of employment 160 
 
 held liable for injuries resulting from disease 231 
 
 liable for disease 255 
 
 liable for medical and funeral expenses under Act of 1906 186 
 
 Liability of, under Act of 1906 185, 186 
 
 nature of liability under Act of 1906 imposed on 189 
 
 not liable formerly for negligence of his agent 159 
 
 pecuniary burden of compensation not excessive under compensa- 
 tion Act of 1897 , 178 
 
 personally liable for injuries received by workmen 170 
 
 right of action formerly ended with death of 160 
 
 workmen can secure compensation after action at law from 189 
 
 workman preferred creditor in case of insolvency of 187 
 
 Employer in United States, degree of duty of 3 
 
INDEX 441 
 
 PAGE 
 
 Employer and employe, Accidents due to fault of, in Germany 55 
 
 antagonized by present laws in United States 75 
 
 given demonstrations at German accident appliance exhibitions.... 123 
 
 Insurance systems, strive to bring together 20 
 
 protected by German compensation system 300 
 
 Relations of, under German system 75 
 
 under common law, in Great Britain 158 
 
 Employers, Accident verdicts disastrous to small German 64 
 
 administer compensation law in Germany 46 
 
 adverse to change of system 309 
 
 Appeals decided in favor of, by Arbitration Court in Germany 
 
 fig. 23, p. 78 
 
 Average ratio of, to workers in Germany 64 
 
 bear burden of insurance 283 
 
 Benefited by compulsory insurance .;,. 286 
 
 Character of information not required under British Act of 1906, 
 
 from 217 
 
 Compelled by law to join craft organization 8, 45 
 
 Compensation system increases confidence of German workers in,. 301 
 contribute toward maintenance of social insurance system, aided 
 
 by state and workers 49 
 
 Co-operation between European and American 273 
 
 Co-operation of, with insurance companies may improve insur- 
 ance rates 66 
 
 Co-operation with legislators necessary in the United States 112 
 
 Costs of compensation insurance to 132 
 
 Dissatisfaction against present insurance burdens by small German 32 
 
 Effective organization among 30 
 
 Efforts to secure highest rate of compensation for injured workers 
 
 by small 78 
 
 Financial responsibility of, in Europe 63 
 
 German Government's attitude respecting 46 
 
 Importance in German industrial insurance of the small , 64 
 
 Importance of immediate medical attention recognized by progres- 
 sive American 50 
 
 Increased power over sickness insurance funds desired by 59 
 
 Information required, under Act of 1906. in Great Britain, from.. 217 
 Joint contribution fosters harmonious relations between workers 
 
 and 57 
 
 liable for injuries caused by personal negligence, in Great Britain. . 159 
 
 may contract out with employes in Great Britain 243 
 
 National relief system will not interfere with action of individual. 381 
 
 of farm help should co-operate in accident insurance 281 
 
 pay third of the sickness insurance fund, in Germany 57 
 
 pay whole compensation in Belgium, England, Finland, Holland, 
 
 Hungary, Italy and Spain fig. 4, p. 14 
 
 Percentage of premiums reaching injured workmen in United 
 
 States, paid by 219 
 
 Provisions against insolvency of small British 179 
 
 relieved of responsibility in Germany 316 
 
 safeguarded from excess liability by obligatory insurance 30 
 
 satisfied with present accident insurance system 31 
 
442 INDEX 
 
 PAGE 
 
 JE?mployers should be given freedom in selecting insurance 67 
 
 should provide first medical aid in accidents 265 
 
 uncertainty of, as to liability under Compensation Acts of 1897 
 
 and 1900 178 
 
 united by compulsory insurance in Germany 38 
 
 Value of organizing by industries by 285 
 
 Voluntary action of, in compensation should receive public en- 
 couragement 267 
 
 wish to continue compensation system in Germanjit 312 
 
 would rather pay whole cost of compensation than allow workers' 
 
 representation in Germany 59 
 
 JEmployers' associations in Germany 28 
 
 Accident insurance in hands of 274 
 
 Accident prevention and compensation system rests with... 26, 28, 45 
 
 Agricultural workers in 64 
 
 are establishing reserve funds in Germany 41 
 
 Bavarian Building Industries 51 
 
 carry accident insurance on mutual basis • 48 
 
 Claims decided by fig. 23, p. 78 
 
 Decision by commission is first step in compensation awards 75 
 
 for the brick industry 299 
 
 for the chemical industry .' 296 
 
 for the leather industry 282, 283, 284 
 
 given power to enforce accident prevention and insurance rules. ... 45 
 
 have taken steps to reduce simulation 54 
 
 Independence of 32 
 
 Industrial statistics of, more perfect than agricultural 102 
 
 in harmony with Government inspectors 71, 275, 276 
 
 Legal powers of 275 
 
 officials serve without pay 48 
 
 Principles of 8 
 
 promptly report accidents 110 
 
 Qualifications required for factory inspectors of 74 
 
 should co-operate with insurance companies 65 
 
 statistics of, for electrical and mechanical trades 38 
 
 Taxation levied by trusted officers of 30 
 
 Value of 308 
 
 Employers' contributions in Germany fig. 17, p. 58 
 
 fault need not be proven in Germany 28 
 
 Accidents due to 55 
 
 Employers' liability in Germany 131 
 
 Act of 1880 in Great Britain did not stop agitation for further 
 
 increase of 169 
 
 Employers' liability, Decisions of principles respecting compensation 
 
 under Act of 1906 in Great Britain regarding 202 
 
 Business and results of four largest insurance companies in 1909, 
 
 in Great Britain (table) 240 
 
 Business of fifty-five companies in 1908 in Great Britain 
 
 (table) 238, 239 
 
 Development in Great Britain of 158 
 
 Fallacy of method used to compute cost in United States of 219 
 
 greater than in Great Britain 165 
 
INDEX 448 
 
 PAGE 
 
 Employers' liability in Switzerland 11 
 
 Employers' Liability in United States, basis of 5 
 
 prior to Compensation Acts in Great Britain 157 
 
 Provisions of Act of 1897 in Great Britain 170 
 
 Employers' Liability system in United States wasteful 45 
 
 under Law of 1871 in Germany 7 
 
 under Lord Campbell's Act extended to their representatives 161 
 
 versus accident compensation in Germany 293 
 
 Employers' Liability Act, enacted in 1880 in Great Britain 164, 165 
 
 Cost of administration in Great Britain 242 
 
 of 1880 in Great Britain followed in p'art by some American States 165 
 
 Workmen in Great Britain prefer Compensation Act to 223 
 
 Employers' liability law, Amendment, in 1897, in Great Britain, to.... 169 
 
 based on English common law in America 157 
 
 Employers' membership in accident insurance associations compulsory 
 
 in Germany 45 
 
 premiums in proportion to workers and State as proposed in 
 
 Switzerland fig. 18, p. 58 
 
 responsibility for accidents in Germany 8 
 
 E'mployes, Appeals of, decided by Arbitration Courts in Germany 
 
 fig. 23, p. 78 
 
 Appeals of, to Court of Last Resort, in Germany fig. 23, p. 78 
 
 can recover for injuries resulting from employers' negligence, in 
 
 Great Britain 159 
 
 Lord Herschell on master's duties to 159 
 
 not to be exposed to unnecessary risk, in Great Britain, by com- 
 mon law 159 
 
 Value of contributions by 263 
 
 Employments, Compensation principle should apply to all 264 
 
 Contract and circumstances of, under common law in Great Britain. 158 
 
 Economic consequences of accidents should be borne by the 259 
 
 English doctrine of common 169 
 
 Engineering and Shipbuilding Employers' Association of Great 
 
 Britain 127, 244, 245 
 
 Engineering work a hazardous industry in England 171 
 
 Engineering workmen under Act of 1906 in Great Britain 192 
 
 England, Act of 1880 did not stop agitation for further increase of 
 
 Employers' liability in 169 
 
 Additional liability legislation in 169 
 
 Agitation for abolition of defense of common employment 163 
 
 Amendment to Law of 1897 relating to employers' liability in 169 
 
 Ancient duty of master not to expose workmen to unnecessary risks 159 
 Case of Priestly vs. Fowler establishing "Fellow Servant Doc- 
 trine" 162, 164 
 
 Colonies establishing the compensation laws of 15 
 
 Commissions from, sent to Germany for study 148 
 
 Comparison of trade risk between Germany and 10 
 
 Compensation Act of 1897 confined to hazardous industries in 171 
 
 Compensation Act of 1897 repealed in 1906 172 
 
 Compensation Acts of 1897 and 1900 destroyed accident compen- 
 sation societies in 177 
 
 productive of litigation in 175, 176 
 
444 INDEX 
 
 PAGE 
 
 England, Compensation legislation strives to fix liability for injury in. 205 
 
 Compensation legislation strives to fix liability for injury in 205 
 
 Compensation conditions of, under Act of 1897 in 169, 170, 171 
 
 ■ Compensation under the Act of 1880 in 165 
 
 Compulsory insurance recommended as most effectual by Depart- 
 mental Committee 182 
 
 Creation of tbe Departmental Committee of 1904 in 17tt 
 
 Defense of assumed risk in 169 
 
 Departmental Committee favors insurance to pergonal liability 
 
 in 181, 182 
 
 Departmental Committee of 1904 in 10 
 
 Development of employers' liability in 158 
 
 Early diflSculty of proving liability in 161 
 
 EflRciency of German workers recognized in 148 
 
 Employer formerly indemnified injured workmen on establishment 
 
 of liability in 160 
 
 Employer formerly not liable for negligence of his agent, in ... . 159 
 Employer formerly relieved of liability if injured man had agreed 
 
 to take risk of employment 160 
 
 Employers formerly liable for injury caused by personal negligence. 159 
 
 Employers' liability greater in the United States than in 165 
 
 Employers pay whole compensation in fig. 4, p. 14 
 
 Employers' personally liable to pay limited compensation for 
 
 injury in 170 
 
 Employment of elderly or maimed persons affected by Compensa- 
 tion Acts of 1897 and 1900 in 179, 180, 253, 254 
 
 Enactment of Employers' Liability Act of 1880 in 164, 165 
 
 Established custom basis of law in 21 
 
 Extension of liability to representatives of employers under Lord 
 
 Campbell's Act 161 
 
 "Fatal Accidents Act of 1846" in 161 
 
 First statutory modification of common law in 1846 in 161 
 
 Imperfections of the Compensation Act of 1897 in 172, 173 
 
 Importance of conclusive evidence by medical referee in 181 
 
 Impossible to get a finding of serious and willful misconduct in. 180, 181 
 Industrial safety not improved by Compensation Acts of 1897 and 
 
 1900 in 176 
 
 Insurance rates lower in Germany than in 146 
 
 Investigation findings by the Departmental Committee of 1904 
 
 in 175, 176, 177, 178, 179, 180, 181, 182 
 
 Liability, extent of, under Act of 1880, in 165 
 
 Lord Campbell's Act in 160 
 
 Obligation under the common law in 159 
 
 Operations of the Compensation Act of 1897 unrecorded in ... . 173, 174 
 
 Optional insurance for workers in fig. 3, p. 13 
 
 Parliament passes first compensation measure in 1897 in 169 
 
 Parliament remedied defects in common law, Middle of 19th cen- 
 tury in 158 
 
 Pecuniary burden of Compensation Act of 1897 upon employer 
 
 not excessive in 178 
 
 Principles and policy of liability legislation in 9 
 
 Provisions against insolvency of the small employer in 179 
 
INDEX 445 
 
 PAGE 
 
 England, Provisions of Employers* Liabilitj^ Act of 1897 in 170 
 
 England, Remedies as to Compensation Acts of 1897 and 1900 sug- 
 gested by the Departmental Committee in 180 
 
 Right of action formerly ended with death of employer or employe 
 
 in 160 
 
 Scop€ of Compensation Act in 171 
 
 Simplified court procedure in. . » fig. 5, p. 15 
 
 Special obligations to workmen under old compensation laws in . . . 159 
 
 Statutory laws of, copied into United States legislation 158 
 
 Uncertainty of employers' liability under Compensation Acts of 
 
 1897 and 1900 in • 177, 178 
 
 English Common Law is basis of present American liability laws 157 
 
 English, Contrast between German legislation and 7 
 
 Doctrine of common employment 169 
 
 German and United States accident compensation, compared with 150 
 
 system of law proverbially conservative 157 
 
 views of German system 148 
 
 Europe, Accident prevention exhibitions strong factors in 118 
 
 accident prevention institution at Amsterdam is oldest in 118 
 
 Compensation legislation proceeds from carefully compiled infor- 
 mation in 211 
 
 Compensation through compulsory insurance in fig. 3, p. 13 
 
 Contributory negligence formerly not a bar to recovery under 
 
 civil law of ] 63 
 
 Contributory principle in fig. 4, p. 14 
 
 Created Right of Recovery in 63 
 
 Financial responsibility of employers in 63 
 
 Growth of compulsory insurance in 65 
 
 Injured workers' relief in fig. 2, p. 12 
 
 Insurance best guarantee of compensation in 63 
 
 Legislation principles in 259 
 
 Practically all employments included in compensation in 19 
 
 European and American employers, co-operation between 273 
 
 European compensation legislation, comparison of 16 
 
 European compensation systems provide for expeditious adjustment of 
 
 claims 265 
 
 countries, extent of contributory principle in 58 
 
 legislation, adapted to our form of government would prove bene- 
 ficial 260 
 
 systems. Compensation not regarded as complete indemnity under. 265 
 Examinations, Applicants for employment in Great Britain must un- 
 dergo physical 231 
 
 Excavating and tunneling. Injured workers in fig. 98, p. 140 
 
 included in German compensation laws 26 
 
 "Excepted" persons in Great Britain under Act of 1906 190 
 
 Expenditures, receipts, and funds of accident compensation system of 
 
 Germany fig. 8, p. 36 
 
 Expert prevention* engineers draft standard specifications for German 
 
 machinery 128 
 
 Explosives in Germany, Causes and frequency of accidents by. fig. 42, p. 94 
 
446 INDEX 
 
 F 
 
 PAGE 
 
 Faber, Arthur: Chairman German Southwestern Woodworkers' Asso- 
 ciation of Germany 303 
 
 Factory accidents in Great Britain, discrepancies in 220» 
 
 employment a hazardous industry in England 171 
 
 inspection system of Germany, statement by Frederick K. Hoff- 
 mann, on excellence of 74; 
 
 inspectors in Germany are graduates of engineering colleges 72: 
 
 inspectors, in Germany, for employers' associationap requirements 
 
 for 74r 
 
 inspectors of, given yearly demonstrations in Germany 123 
 
 Falkenhauer, J., Chairman of Team Owners' Association of Germany. . 294 
 
 Farm accidents in Germany decreasing 8T 
 
 Farm and industry in Germany, comparative hazard of 
 
 figs. 24-25, facing p. 83: 
 
 Farm hazards in the United States, Walter Drew on 93 
 
 labor in the United States, compensation measures will attract. ... 94 
 
 wagons in Germany must have safety appliances fig. 33, p. 90 
 
 Farmer a factor in all accident systems in Germany 85 
 
 Farmers' cider mills, with and without safety guards, in Germany 
 
 fig. 40, p. 93: 
 horsepower mills in Germany must be safeguarded. . ..fig. 37, p. 92 
 power transmission machinery without and with safety covering 
 
 in Germany fig. 38, p. 92' 
 
 "Fatal Accidents Act of 1846" in England 161 
 
 Fatal and non-fatal accidents in Canada by trades from 1904-1909 
 
 (table) 378^ 
 
 Fatal industrial accidents in Canada in 1909 (table) 377 
 
 "Fellow Servant Doctrine" in England 162" 
 
 Established in United States by Chief Justice Shaw in 1842. . .162, 163 
 Feed cutting machine in Germany, without and with safety guards 
 
 fig. 35, p. 91 
 
 Finland, compensation laws established in 15' 
 
 compulsory insurance for all workers in fig. 3, p. 13- 
 
 emploj-ers pay whole compensation in fig. 4, p. 14 
 
 insurance associations in 13: 
 
 regular court procedure, for settling disputes in fig. 5, p. 15 
 
 Fire insurance companies of Great Britain enter employers' liability 
 
 field 241 
 
 Fishery and sea navigation in Germany, frequency and results of acci- 
 dents in (frontispiece) 
 
 Fishermen included in German compensation laws 26" 
 
 Flour mill industry, 22 years' German history of injured workers 
 
 in ] fig. 80, p. 134 
 
 Flour mills in Germany, frequency and results of accidents in. (frontispiece) 
 Food and canning industry, 22 years' German history of injured 
 
 workers in fig. 103, p. 142* 
 
 Food industry in Germany, frequency and results of accidents in 
 
 (frontispiece) 
 
 Forestry included in German compensation laws .' 26- 
 
 statistics German 25' 
 
 statistics in United States 25» 
 
INDEX 44T 
 
 PAGE 
 
 France, compulsory insurance for part of wage workers in. .. .fig. 3, p. 13 
 
 compensation laws established in 15 
 
 German social insurance system admired in 149' 
 
 simplified court procedure in fig. 5, p. 15^ 
 
 the "Doctor Question" in 54 
 
 workmen or state contribute in fig, 4, p. 14 
 
 French compensation laws, Quebec adopts 15, IG 
 
 French views of German system 149' 
 
 Friendly Societies of Great Britain 243, 254 
 
 Fund, accident compensation, Swiss government contribution to 58 
 
 accident insurance, in Germany, advisability of workers' contribu- 
 tions to 58 
 
 accident prevention, raised by popular subscription in Germany... 101 
 compensation, administered by contributors or the state, the best 
 
 method 262, 263 
 
 Government contributions to, in Germany 49 
 
 in Germany, increased requirements for reserve 132 
 
 in Germany, workers have no voice in the administration of. . 58 
 
 Fund, German accident insurance 50 
 
 German reserve 41 
 
 German sickness insurance 50 
 
 insurance, preferable to individual liability 262 
 
 insurance, not in -England's first compensation measure 169 
 
 sick, in Germany 76, 281, 283, 287 
 
 Funds, expenditures, receipts and organization of accident insurance 
 
 and compensation system of Germany. .. .fig. 8, facing p. 36 
 Fuster, Edouard. social insurance expert 149 
 
 G 
 
 Gas and waterworks in Germany, frequency and results of accidents 
 
 in ( frontispiece ) 
 
 22 years' history injured workers in fig. 113, p. 145 
 
 General Electric Company, of the United States, mutual insurance 
 
 plan of the 415 
 
 works at West Lynn, Mass fig. 131, p. 414 
 
 German Emperor and accident prevention fund 102 
 
 German employers united by obligatory workers' insurance 38 
 
 German, E'nglisb, and United States accident compensation insurance, 
 
 comparison of 150 
 
 German experts, concentrated efforts to reduce light accidents, by 53 
 
 German legislatures, accident prevention constantly agitated in 127 
 
 German prevention appliances may be adopted in United States...... 126 
 
 German Southwestern Woodworkers' Association 303 
 
 German system, English views of 148 
 
 French views of 149 
 
 of compensation insurance, theory of 56 
 
 German trade schools have special courses in accident prevention 127 
 
 Germany, accidental injuries, in 27 
 
 accident cases, proportion of changes in 103 
 
 accident insurance and compensation, organization, receipts, expen- 
 ditures and funds in fig, 8, facing p. 36 
 
 a necessity in 307 
 
 for agricultural and horticultural workers in (frontispiece) 
 
448 INDEX 
 
 PAGE 
 
 Germany, accident insuiance in hands of employers' associations in 282 
 
 * in liands of employers' associations in ; 274 
 
 Social consequences of 293 
 
 system ^26 
 
 accident prevention, all industries, in . . fig. 44, p. 103 ; fig. • 108 
 
 analysis of in 07 
 
 business proposition in ^9 
 
 cost of inspection and management in fig, 43, faci 101 
 
 demanded by law in • -^ 289 
 
 enforced by compulsory standards for machinery in . . . 128 
 
 greater than compensation in 9 
 
 in 30 
 
 in chemical industry, in fig. 45, p. 104 ; fig. 
 
 in glass, pottery and brick industries, in 
 
 fig. 48, p. 107; fig. 
 
 in iron and steel industries, in fig. 47, p. 106; fig , ^. 109 
 
 in mining industry, in 
 
 fig. 46, p. 105; fig. 53, p. 110; fig. 54, p. Ill 
 
 methods strictly enforced in 317 
 
 paying investment in 100 
 
 placed on practical basis in 314 
 
 strong in 126 
 
 more important than compensation in 29 
 
 accidents among farm hands from falls, in fig. 30, p. 88 
 
 causes in 55 
 
 comparative statistics of, in 95 
 
 due to fault of employers and workers in 55 
 
 of less than 13 weeks' duration, in fig. 14, p. 52 
 
 of more than 13 weeks' duration, in fig. 14, p. 52 
 
 to farm workers while cutting and hauling timber, in. fig. 34, p. 90 
 
 to women workers, few compared with men in 69 
 
 adequacy of compensation in 284 
 
 a^ed work-ers not barred from employment in 69 
 
 agricultural accidents, according to age and sex 70 
 
 less than in United States 93 
 
 resulting from teaming, in fig. 33, p. 90 
 
 agricultural occupations included in accident insurance, in 287 
 
 agricultural employers' associations in 64 
 
 on accident prevention in 99 
 
 agricultural, statistics of 25 
 
 agriculture and industry, community of interests in 317 
 
 and Austria, insurance in mutual companies compulsory in 65 
 
 and England, Contrast of legislation in 7 
 
 and Great Britain, difference in viewpoints of . .251, 252 
 
 and Great Britain, comparison of trade risk in 10 
 
 and New York, comparison of insurance rates between. fig. 116, p. 152 
 
 annual pension method, adds new cases to the old, in 34 
 
 arbitration court decisions, appeals from, in 77 
 
 decisions made by a majority vote, in 76 
 
 expenses borne in part by the State in 77 
 
 fair and impartial in 78 
 
 make medical examination in 77 
 
 the second step in legal process of cotnpensation in 76 
 
INDEX 
 
 149 
 
 PAGE 
 
 Gerraanyr 'Average ratio of employers to workers in 64 
 
 benefits paid during 1908, in 33 
 
 benefited by social insurance 37 
 
 bill -before the Reichstag in 32 
 
 'ki of compensation placed upon the industry in 64 
 
 3. and frequency of accidents by occupations in, fig. 42, facing p. 94 
 
 .3 of accidents immaterial 285 
 
 •"fi^y associations benefited by accident insurance in 286 
 
 ririson of accidents in agricultural and building industries in 86 
 
 ;nson of United States statistics with thos-e of 25 
 
 conii.. nsation and accident prevention rests witli employers' associa- 
 tions in • • 26 
 
 ■'•nsation benefits employer and employe alike in 278 
 
 St to employers in 132 
 
 les not interfere with self-government in 279 
 
 minates class hatred in 300 
 
 iaial to socialistic doctrines in 317 
 
 .-for accidents during the last 25 years 33 
 
 for minor accidents not necessary in 313 
 
 for occupational accidents in 47 
 
 funds, based on industrial hazards and prevention efforts in 65 
 
 increases workers' confidence in employers in 301 
 
 includes all accidents in 302 
 
 compensation insurance Act comprehensive, in 36-37 
 
 cost of administration in fig. 11, p. 47 
 
 total expenditures in fig. 10, p. 47 
 
 versus employers liability in 293 
 
 compensation laws include land and water transportation, marine 
 and army telegraph, agricultural and horticultural pursuits 
 and forestry, building industries, tunneling, excavating, 
 
 sailors and fishemen 26 
 
 administration of in hands of united employers in 46 
 
 established in 15 
 
 compensation legislation, relation of injured workmen to, in 251 
 
 proceeds from carefully compiled information in 211 
 
 compensation lessens workmen's sense of responsibility in 295 
 
 a model in 297 
 
 most beneficial legislation ever undertaken in 296 
 
 protects and benefits workmen in 320 
 
 protects employes and employers in 300 
 
 reform. Prince Bismarck, prime mover in 26 
 
 system, economic and legal basis of 27 
 
 to injured workers in 40 
 
 to workers, estimated cost of 147 
 
 to workers a public debt, in 49 
 
 scheme of 6 
 
 compulsory insurance against accident in 11 
 
 best 274 
 
 for all workers in fig. 3, p. 13 
 
 necessary in 282 
 
 recommended in . . * 313 
 
 contributory principle inj 57, fig. 17, p. 58 
 
 of accident insurance in 57 
 
450 INDEX 
 
 PAGE 
 
 Germany, co-operation of agriculture and industry in 294 
 
 cost of accident prevention in 101 
 
 cost of industrial accidents placed on manufacturers in 283 
 
 cost of insurance in 14G 
 
 created rights of recovery in 63 
 
 damage suits eliminated in 314 
 
 dangerous animals must be guarded in fig. 31, p. 89 
 
 dangerous parts of machinery and safety devices painted red, to 
 
 attract attention, in fig. 29, p. 88 
 
 death rate due to work accidents increased in .... .• 35 
 
 deaths, all causes, 1905-07, in fig. 7, p. 36 
 
 caused by occupational accidents in 35 
 
 diseases, 1905-07, in fig. 7, p. 36 
 
 due to accidents in 107 
 
 from occupational accidents in fig. 6, p. 35 ; fig. 7, p. 36 
 
 deferred payments in accident insurance system in 40 
 
 distress and misery eliminated by compensation in 295 
 
 "Doctor Question," the, in 54 
 
 domestic statistics of 25 
 
 duration of industrial injuries in 52 
 
 during period pending final decision, compensation paid in part in . . 78 
 
 duty of state to protect workers in 46 
 
 each employer pays his share toward proper insurance of his 
 
 workers 46 
 
 effects of compensation law on manuf acurers in 295 
 
 on trade unions in 317 
 
 eflSciency of accident prevention dependent on workers contribu- 
 tions in 58 
 
 efficiency of insurance system in 47 
 
 efficiency of medical attendant in 53 
 
 Employer must join association in his industry in 8, 28 
 
 pays one-third of the sickness insurance fund in 57 
 
 employers adverse to change of system in 309 
 
 bear burden of insurance in 283 
 
 of farm help co-operate in accident insurance 281 
 
 pay 33 per cent, of sick funds in 76 
 
 plan to obtain increased power over the sickness insurance 
 
 funds, in 59 
 
 wish to continue compensation system in 312 
 
 Employers' Accident Insurance Associations, principles of 8 
 
 employers' associations are accident insurance institutions in 45 
 
 and accident prevention in 30 
 
 are responsible for administration of accident compensation 
 
 system in 28 
 
 carry accident insurance on mutual basis 48 
 
 commission decision first step in compensation system 75 
 
 have power to enforce accident prevention rules and insurance 
 
 rules in 45 
 
 have taken steps to reduce simulation in 54 
 
 in 28 
 
 work in harmony with government authorities in 275, 276 
 
 employers' contributions in fig. 17, p. 17 
 
 fault need not be proven in 28 
 
INDEX 451 
 
 PAGE 
 
 Germany, employers' liability and compensation in 131 
 
 law of 1871 in 7 
 
 law of 1881 in 7 
 
 employers' membership in insurance organization obligatory in.... 65 
 
 responsibility for accidents in 3 
 
 English commission study industrial conditions in 148 
 
 estimated cost of insurance in 147 
 
 experts of, aid National Association of Manuf actur€rs 273 
 
 extent of contributory principle in 58 
 
 factory inspection in 74 
 
 system of 72 
 
 factory inspectors graduates of engineering colleges in 72 
 
 falls from ladders serious cause of accidents in 94 
 
 farm accidents, decrease in 87 
 
 farmer a factor in all accident systems in 85 
 
 farm wagons must have safety appliances, in fig. 33, p. 90 
 
 Financial responsibility of Employers in 63 
 
 first accident insurance bill in 7 
 
 first compensation law enacted in 26 
 
 first year of accident compensation system in 33 
 
 former employers' liability laws a mistake 304 
 
 frequency and results of accidents in (frontispiece) 
 
 frequency of agricultural accidents in, according to age and sex 
 
 fig. 20, p. 69 
 
 general compulsory insurance best for employers in, . '. 286 
 
 government and employers' associations promptly report accidents in 110 
 government inspectors and employers' associations inspectors in, . 71 
 
 government insurance department 48 
 
 Government's attitude respecting employers 46 
 
 government's contribution to workers' compensation fund in 49 
 
 great value of statistics and experience in 261 
 
 growth of accident compensation in 27, fig, 9, p, 36 
 
 compensation for deaths due to accidents in fig. 9, p. 36 
 
 compulsory insurance in 65 
 
 unions retarded in 281 
 
 hazard, comparative of industry and farm in figs. 24-25, p. 83 
 
 hazards : ratio, made by experts in 67 
 
 highest court for compensation cases in 77 
 
 hospitals established by employers' associations in 50 
 
 hospital expenditures for accidents in fig, 9, p, 36 
 
 Imperial Insurance Department, frequency and results of accidents 
 
 as shown by 86 
 
 on accident prevention in 99 
 
 supervises administration of compensation law 46 
 
 Imperial liability law of 1871 27 
 
 importance of accident prevention in 99 
 
 importance of preventing serious accidents in 53 
 
 improvement of economic welfare concurrent with the improvement 
 
 in condition of workers 38 
 
 imposition hinders advancement in 53 
 
 incapacitated workers cared for in 46 
 
 increase in workers* contribution not desirable in 28^ 
 
 increase of light accidents in 52 
 
452 INDEX 
 
 PAGE 
 
 Germany, independence of employers' Associations in 32 
 
 individual employers relieved of responsibility in 316 
 
 individual responsibility in 28 
 
 industrial accidents according to age and sex, in 69 
 
 according to days and hours, in fig. 19, p. 68 
 
 industrial and agricultural accidents in, comparison of 71 
 
 comparison of, according to days of week, in fig. 22, p. 71 
 
 industrial employers' associations in 64 
 
 consider accident prevention in 99 
 
 Industrial injuries in fig. 14, p. 52 
 
 industrial insurance assessments made by experts in 65 
 
 in mutual concerns, compulsory in 65 
 
 Industrialists, Central Federation of 326 
 
 industrial relief has secured higher eflBciency in 101 
 
 statistics of 25 
 
 waste from injuries compared with loss of life in wars 35 
 
 influence of compensation system on workers in 275 
 
 injured and sick workmen cared for by employers in 30 
 
 quickly receive relief from sickness insurance funds in 55 
 
 injured workers form industrial groups in 132 
 
 restored to industry quickly as possible 47 
 
 injuries, extending over thirteen weeks during 1908 in 34 
 
 to agricultural workers, by vicious animals in.... fig. 32, p. 89 
 
 insurance, amount paid, in 276 
 
 approval of 287 
 
 associations in 13 
 
 compulsory versus voluntary in 319 
 
 cost for all industries combined fig. 114, p. 146 
 
 for workers relieves charitable institutions, in 49 
 
 important for smaller employers in 64 
 
 litigation cost in 47 
 
 premiums, differences in 132 
 
 rates compared with those in New York 152 
 
 rates fixed according to efforts at accident prevention 127 
 
 rates for 1909, industrial occupations per $100 pay roll, in 
 
 fig. 79. p. 133 
 
 higher than in Great Britain 146 
 
 rates higher than in United States 131 
 
 rates lower than in New York 151 
 
 rates, basis of 48 
 
 best guarantee of compensation in 63 
 
 lawsuits made impossible in 302 
 
 Leading men interested in compensation system 27 
 
 League of German employers' associations 290 
 
 legal accident prevention regulations drafted by commissions in . . 31 
 
 legal counsel may be engaged by both sides in arbitration courts.. 77 
 
 legislation for protection of workmen great achievement 290 
 
 low cost of insurance system in 48 
 
 manufacturers satisfied with compensation system of 30.3, 311 
 
 machine hazard records, in 102 
 
 machinery of insurance associations secure greater safety of the 
 
 workmen in 176 
 
 magnitude of accident prevention and relief System in 33 
 
INDEX 453 
 
 PAGE 
 
 Cermany, medical attention part of compensation in 48 
 
 medical attention part of compensation 48 
 
 fraternity consider accident prevention in 99 
 
 specialists treat all injuries in 50 
 
 membership of employers in accident insurance associations com- 
 pulsory in 45 
 
 method of determining amount of compensation in 76 
 
 of providing for determination of compensation in 75 
 
 mutual accident insurance in. 45 
 
 necessity of immediate medical attention 50 
 
 new government bill considered a menace to accident insurance in 296 
 
 new insurance bill not favored in 318 
 
 obligatory insurance in 29 
 
 obligatory results changed to voluntary performance 100-101 
 
 obligatory social insurance universally adopted, is desire of. .38, 39 
 obligatory workers' insurance has reduced unfair competition in. , 38 
 occupational accidents causing death in fig. 25, p. 83 
 
 lasting over thirteen weeks in fig. 24, p. 83 
 
 offers greatest example of good accomplished with proper co- 
 operation 26 
 
 officials of Employers Associations serve without pay 48 
 
 one pension for every 63 inhabitants in 35 
 
 organization receipts and expenditures of the accident insurance 
 
 system in 36 
 
 partial permanent disability from occupational accidents, in 1908, 
 
 in fig. 27, p. 84 
 
 paupers not granted old age pensions in 147 
 
 payment of compensation in 31 
 
 penalties provided for not reporting accidents in Ill 
 
 pensions paid for injury in 33, 34 
 
 paid for occupational injuries during 1908 in 35 
 
 permanent and complete disability from occupational accidents in, 
 
 fig. 26, p. 84 
 
 permanent disability from accidents in 107 
 
 personal service statistics of 25 
 
 persons insured against accidents in 33 
 
 policy to increase workers' efficiency in 147 
 
 premiums paid for life saving devices in fig. 43, p. 101 
 
 present accident insurance system satisfies employers in 31 
 
 preservation of workers means increase of national resources in,. 38 
 
 prevention better than cure in 276 
 
 prevention encouraged under present system in 48 
 
 prevention of imaginary ailments in 51 
 
 Prince Bismarck and German manufacturers 37 
 
 principle of compensating the workers for accidents in 55 
 
 private accident insurance expensive and inefficient in 308 
 
 progress not rapid in accident preven^:ion in 102 
 
 of industries in 38 
 
 prohibits use of square cutter heads on wood planers.. fig. 55, p. 113 
 
 proportion of compensation borne by workers in 57 
 
 prosperity helped by compensation system in 277 
 
 public charity relieved by accident insurance system of 288 
 
 public service statistics of 25 
 
454 INDEX 
 
 PAGE 
 
 Germany, radical changes in accident insurance system not desired in.. 292 
 
 ratio of light to serious accidents in 52 
 
 recognized as authority on compensation legislation 22 
 
 record of new accident cases in 34 
 
 relief system, Statistics of 33 
 
 representative powers of contributors in 58 
 
 requirements for factory inspectors for employers' associations in 74 
 
 reserve funds in 41 
 
 responsibility for occupational accidents in fi^s. 15-16, p. 55 
 
 revision of compensation laws in 27 
 
 right to compensation in 28 
 
 safety appliance bill pending before Reichstag in 45 
 
 safety appliances for woodworking machines for protecting workers' 
 limbs, in.. fig. 59, p. 114; fig. 60, p. 114; fig. 61, p. 115; 
 fig. 62, p. 115; fig. 63, p. 115; fig. 124, p. 395; fig. 125, 
 
 p. 396; fig. 126, p. 397; fig. 127, p. 397 
 
 scarcity of labor increases accidents in 112 
 
 School children taught accident prevention in 127 
 
 scientific accident prevention an important branch of technical 
 
 engineering in 100 
 
 scientific accident prevention branch of technical engineering in . . 276 
 
 sick fund of 281, 283, 801, 309, 312, 315 
 
 sick insurance obligatory in 57 
 
 sickness, accident and invalid insurance in 49 
 
 sickness insurance fund in 50 
 
 simplified court procedure in fig. 5, p. 15 
 
 simulation in 53, 54, 58 
 
 made difficult in 281 
 
 prevented in 283 
 
 reduced by waiting time in 298 
 
 remedy for 305, 310 
 
 slight injuries to workers, increase total of industrial accidents in 111 
 
 small employers and accident verdicts, in 64 
 
 an important factor of industrial insurance, in 62 
 
 dissatisfied with present insurance burdens in 32 
 
 work to secure highest rate of compensation for injured workers 
 
 in 78 
 
 social insurance, beneficial to ' 148 
 
 system admired in France 149 
 
 system is mutual and contributory in 49 
 
 system. State, employers and workers contribute toward the 
 
 maintenance of 49 
 
 socialistic demands in 322 
 
 socialists antagonistic to accident insurance system of 288 
 
 socialists control sickness insurance in 59 
 
 social political theorists in 32 
 
 society of prevention engineers in 103 
 
 spirit shown in preventing accidents in- 101 
 
 statistical tables accurate in 67 
 
 statistics of accident, sickness and invalidity insurance in 39 
 
 of employers associations for electrical and mechanical trades 
 
 in 38 
 
 show degree of hazard in 284 
 
INDEX 455 
 
 PAGE 
 
 Germany, State Factory inspectors given yearly demonstrations in 123 
 
 stock raising, statistics of 25 
 
 success in compensation legislation due to Bismarck's personality.. 274 
 
 taxation levied by trusted oflScers of employers' associations in.... 30 
 
 temporary compensation for minor injuries in 299 
 
 temporary disability from occupational accidents in 1908, in, 
 
 fig. 28, p. 85 
 
 territorial associations versus system in 292 
 
 total disability from accidents in 107 
 
 total number of injured workers during 1908 in 34 
 
 trade and transportation, Statistics of 25 
 
 trade unions not strengthened by compensation of 301, 309, 314 
 
 trade unions strengthened by accident insurance laws 293 
 
 uniform distribution of burden prevents competition in 308 
 
 value of employers' associations in 308 
 
 value of organizing employers by industries in 285 
 
 wage workers insured against accidents in 33 
 
 weekly payments to injured workers in 49 
 
 accident compensation insurance in 99 
 
 workers appreciate compensation system of 298 
 
 are represented in the commissions in 31 
 
 have no voice in management of accident insurance in 306 
 
 contribute 66 per cent, of the sick funds in 76 
 
 employed in small plants, percentage of ,. 64 
 
 feel secure in their rights in 304 
 
 have no voice in the administration of compensation funds in 58 
 
 injured by unpreventable accidents compensated in 46 
 
 in agricultural employers' associations in 64 
 
 killed in 1908 in 34 
 
 know they are protected in 311, 314, 319 
 
 may help in managing insurance associations in 293 
 
 pay two-thirds of the sickness insurance fund in 57 
 
 permanently injured in 1908 in 34 
 
 satisfied in 297, 309 
 
 satisfied with accident insurance in 282 
 
 temporarily disabled during 1908 in 34 
 
 voluntarily come under Compensation Insurance Act in 36 
 
 workers' attitude toward contribution to sick funds in 287 
 
 workers' contributions important in fig, 17, p. 58, 311 
 
 necessary 294 
 
 satisfactory in 310, 317 
 
 simplifies practical working of system in 315 
 
 to accident insurance funds, advisability of, in 58 
 
 to accident insurance large enough in 281 
 
 to mutual social insurance in fig. 13, facing p. 49 
 
 workers' compensation in mutual insurance in fig. 12, p. 49 
 
 change in public sentiment in 32 
 
 efficiency recognized in England 148 
 
 ideas of slight injuries enlarged in 53 
 
 increased hazard, due to age, in 69 
 
 obligatory under law 274 
 
 workers' objections to accident insurance system in 31 
 
 workmen or state contribute in fig. 4, p. 14 
 
456 INDEX 
 
 PAGE 
 
 Gladwell, S. K., secretary of Iron Trade Employers' Association of 
 
 Great Britain 244 
 
 Glass industry in Germany, frequency and results of accidents in 
 
 (frontispiece) 
 
 22 years' history of injured workers in fig. 99, p. 141 
 
 Glass pottery and brick industries, 21 years' German accident prevention 
 
 in fig. 48, p. 107 ; fig. 51, p. 109 
 
 Great Britain, accident companies find difficulty in formulating insur- 
 ance rates in 228 
 
 accidents "arising out of and in the course of emplfyment". .... 195 
 
 Act of 1897 in 10 
 
 Act of 1900, "excepted" persons under 190 
 
 administration of 187 
 
 Amount of Compensation under 186 
 
 appeals under the, in 188 
 
 bears no relation to accident prevention 250 
 
 comprehends many contingencies under "accidents" in 203 
 
 discourages contracts outside its terms in 242 
 
 does not require medical attention in 250 
 
 features of administration in '. 206 
 
 increased area of insurance activity 230 
 
 official inquiry into operation of, inconclusive in 224 
 
 the latest Liability Law in 185, 186 
 
 actuarial problems within the Compensation Acts of 246 
 
 amount of compensation paid during 1909 in 227 
 
 Burden of the Act of 1906 displayed in the statistics of 220 
 
 claims under Act of 1906 are promptly adjusted in 206 
 
 common law development in 158 
 
 compensation awarded may be enforced by ordinary process of 
 
 execution in 187 
 
 for industrial diseases in 205 
 
 insurance carried at a loss in 237 
 
 insurance, lessons of, to United States in 249-256 
 
 insurance, position of underwriters in 246 
 
 laws established in 15 
 
 legislation, influenced by labor party in 249 
 
 legislation, primal defects in 249-253 
 
 legislation, relation of workman in 251 
 
 proceedings not limited in 206 
 
 under Act of 1906 determined by earnings in 193 
 
 continuing instability of rates in 234 
 
 contracting out of the act of 1900 in 186, 243 
 
 contract of employment and circumstances under common law in 158 
 
 cost of insurance administration in 242 
 
 Debtors' Act of 1869 in 187 
 
 definition of a "workman" under Act of 1906 in 190 
 
 difference between viewpoint of Germany and 251, 252 
 
 Discrepancies in factory accidents in 220 
 
 doctrine of personal liability in • 249 
 
 early extension of "Fellow Servant Doctrine" in 162 
 
 early difficulties in interpretation of "accident" 198 
 
 effect of Compensation Act unsalutary 256 
 
 upon employment of elderly and defectime men in 253, 254 
 
INDEX 457 
 
 PAGE 
 
 Great Britain, effect of judicial decisions on rates in 230 
 
 emploj^er and employe under common law in 158 
 
 employer an instrumentality to relieve indigence in 250 
 
 forced to regard employe as an unknown hazard in 253 
 
 liable for disease in 255 
 
 liable for medical and funeral expenses under Act of 1906 in. . 186 
 
 liable for injuries resulting from disease in 231 
 
 employers' associations, engineering and shipbuilding in 244-245 
 
 employers' liability business of fifty-five companies in 1908 in 
 
 (table), 238-239 
 insurance, business of four largest companies in 1909 in 
 
 (table), 240 
 
 outlines at present are vague in 246 
 
 prior to Compensation Act in 157 
 
 Erroneous Computation of Cost of Compensation in 219 
 
 Estimate of number of persons covered by Act of 1906 in 215 
 
 explanations advanced for insurance losses in 241 
 
 features of Compensation Act unworthy of imitation 255 
 
 fire insurance companies enter employers' liability field in 241 
 
 first stages of liability insurance under Compensation Act in.... 229 
 
 Great Eastern Railroad plan in 244 
 
 Home Ofiice Commentary on Statistics, Act of 1897 211 
 
 illegitimate children of injured workmen entitled to compensation 
 
 under Act of 1906 in 186 
 
 illegitimate claimants recognition in 258 
 
 inclusion of infectious diseases as "accident" in 199 
 
 incompleteness of compensation statistics in 218, 224 
 
 incompleteness of ofiicial records compels resort to insurance com- 
 panies in 228 
 
 increase of liability. Act of 1906 over Acts of 1897 and 1900 235 
 
 increased demand for liability insurance under compensation legisla- 
 tion in 227 
 
 individual liabilities indefinite in 252 
 
 information and recorded experience lacking in 252 
 
 under Act of 1906 required only from limited number of in- 
 dustries in 214, 217 
 
 injured workmen entitled to compensation under Act of 1906, in. . 186 
 injured workmens' dependents entitled to compensation under Act 
 
 of 1906 in 186 
 
 injury accelerating diseased condition held to be personal injury in 199 
 
 insolvency of employer, workman a preferred creditor, in 187 
 
 instances where liability may or may not exist in 196 
 
 insurance companies known as either tariff or non-tariff in 229 
 
 not required to make pecuniary guarantee of solvency prior 
 
 to 1909 in ; 229 
 
 rates under Act of 1906 in 231 
 
 under Workmen's Compensation Act of 1897 and 1906, in 
 
 (table), 232-233 
 
 interpretation of "accident" by House of Lords in 198 
 
 investigation of accidents in 5 
 
 Iron Trade Employers' Association of 244 
 
 judicial arbitration of compensation claims in 221 
 
 abor party a power in 249 
 
458 INDEX 
 
 PAGE 
 
 Great Britain, lack of statistical data respecting operation of Act of 
 
 1897 , 212, 224 
 
 locality of accidents considered under Act of 1906 in 194 
 
 liability of employers before adoption of compensatory principle in 157 
 
 Marked increase in occupational diseases in 221 
 
 meaning of "accident" a question of law in 197 
 
 meaning of "casual labor" under Act of 1906 in 190, 191 
 
 mental shock by fright held to be accident in 201 
 
 mode of collecting compensation claims in 187 
 
 municipal insurance against liability to public servftnts in 231 
 
 nature of liability imposed by Act of 1906 on employer in 189 
 
 non-tarifif companies not bound by rate restrictions in 230 
 
 notice of accidents and filing of claims in 187 
 
 number of workmen under Act of 1908 in 191, 192 
 
 occupational diseases under act of 1906 in 186 
 
 occupations embraced under the Act of 1906 in 192-193 
 
 onus of proof in accidents rests upon the applicant in 195 
 
 operation of Act of 1906 during years 1908 and 1909 215, 217 
 
 physical examinations of applicants for employment required in. . 231 
 provision for compiling information respecting Act of 1906 in. .. . 213 
 
 recklessness no bar to compensation in 204 
 
 report of Chief Factory Inspector of 5 
 
 Responsibility of, for accidents in 5 
 
 Review of workmen's compensation Act of 1906 208 
 
 Risks taken under Compensation Act underwritten at a loss .... 235 
 
 Serious and willful misconduct affecting compensation in 203 
 
 Shortcomings of Compensation Act of 255 
 
 Spirit of compensation Act of 1897 in 250 
 
 statistics of compensation and proceedings under the Compensation 
 
 Act of 1906 in 215 
 
 Suicide bars recovery of compensation in 203 
 
 workmen may secure compensation after action at law in 188, 189 
 
 prefer Compensation Act to employers' liability Act 223 
 
 Great Eastern Railroad of Great Britain, plan of 244 
 
 Grumbt, Ernst, Chairman Saxonian Woodworkers' Employers' As- 
 sociation 290 
 
 H 
 
 Hague, International Conference on Social Insurance at The 234 
 
 International Conference on "The Doctor Question" at the 54 
 
 Hartmann, Dr. Konrad, statement on factory inspection system of 
 
 Germany by 72 
 
 Hartmann, Professor, Doctor 39 
 
 Hazard agricultural, greater in United States than in Germany!.!!.. 93 
 
 Agricultural must be considered 87 
 
 comparative, in Germany, of industry and farm. figs. 24-25, facing p. 83 
 
 element of inherent g 
 
 increased by old age, in Germany !!!!!!!!!!!! 69 
 
 In Great Britain, employer regards employe as an unknown! ! ! ! ! ! 253 
 machme, in Germany, industrial employers' associations have com- 
 plete record of iqo 
 
 of occupation, accidents due to, in ' Germany! ! ! 55 
 
 principle of trade g 
 
INDEX 459 
 
 PAGE 
 
 Hazardous occupations 83 
 
 in building trades 83 
 
 in England, compensation act of 1897 confined to 171 
 
 obligatory compensation for accidents in 83 
 
 Hazards, farm, in tlie United States, Walter Drew on 93-94 
 
 in Germany, exact ratio of, made by experts 67 
 
 of industries in Germany are passed on by employers organizations 65 
 
 Henrich, F. : Chairman of Br-ewers' and Malsters' Association 310 
 
 Hershell, Lord, on duty of master to employes 159 
 
 Herve, French social democrat, statement by 282 
 
 Hill, Sir John Gray, analysis of Acts by 16 
 
 Hoffmann, Mr. Frederick K., on excellence of German factory inspection 
 
 system 74 
 
 Holland, compensation laws established in 15 
 
 compulsory insurance for all workers in fig. 3, p. 13 
 
 employers pay whole compensation in fig. 4, p. 14 
 
 simplified court procedure in fig. 5, p. 15 
 
 Horticultural and agricultural accidents in Germany cause and fre- 
 quency of fig. 41, facing p. 94 
 
 Horticultural and agricultural workers, in Germany, accident insurance 
 
 for (frontispiece) 
 
 Horticultural pursuits, included in German compensation laws 26 
 
 statistics, German 25 
 
 statistics, United States 25 
 
 Hospital expenditures for accidents in Germany fig. 9, facing p. 36 
 
 Hungary, compulsory insurance for all workers in fig. 3, p. 13 
 
 employers pay whole compensation in fig. 4, p. 14 
 
 insurance associations in 13 
 
 simplified court procedure in fig. 5, p. 15 
 
 Illegitimate children in Great Britain entitled to compensation under 
 
 Act of 1906 186. 253 
 
 Imperial Insurance Department of Germany, Accident prevention con- 
 sidered by 99 
 
 Imposition hinders advancement in Germany 53 
 
 Prevention in Germany of 51 
 
 Indemnity, Compensation not intended under European systems to be 
 
 complete 265 
 
 rates higher in Germany than in England 146 
 
 Individual liabilities indefinite in Great Brita;in 252 
 
 Industrial accidents in Germany, according to age and sex., .fig. 20, p. 69 
 
 according to days and hours fig. 19, p. 68 
 
 according to days of week fig. 22, p. 71 
 
 compared with agricultural 71 
 
 fatal and non-fatal, in Canada, in 1909 (table) 377 
 
 Increase in number of slight 110 
 
 paid by manufacturers 283 
 
 Partial permanent disability from, in 1908 fig. 27, p. 84 
 
 Permanent and complete disability from fig. 26, p. 84 
 
 Responsibility for fig. 15, p. 55 
 
 Temporary disability from fig. 28, p. 85 
 
460 INDEX 
 
 PAGE 
 Industrial compensation funds in Germany based on assessments made 
 
 by experts 65 
 
 conditions in Germany studied by English commissions 148 
 
 diseases in Great Britain, compensation for 205 
 
 Industrial employers' associations in Germany 64 
 
 consider accident prevention 99 
 
 have complete record of machine hazard in Germany 102 
 
 Industrial injuries, duration of, in Germany fig. 14, p. 52 
 
 Industrial insurance in mutual concerns, compulsory i^ Germany and 
 
 Austria 65 
 
 Industrial Liability Insurance and Accident Prevention, findings of 
 the Committee of the National Association of Manufac- 
 turers on 259, 269 
 
 Industrial occupations, insurance rates per $100 pay roll, in Ger- 
 many fig. 79, p. 133 
 
 Industrial, political and economic leaders co-operate in German acci- 
 dent prevention methods 127 
 
 Industrial relief has secured higher efficiency in Germany 101 
 
 strength, preservation of, insures national efficiency 3 
 
 Industrial trade associations in Germany, frequency and results of acci- 
 dents in (frontispiece) 
 
 Industries, accident prevention for 21 years in combined German 
 
 fig. 44, p. 103; fig. 49, p. 108 
 accidents per 100 insured workers, in combined German. fig. 114, p. 146 
 Comparison of accidents in Germany, in building and agricultural. 86 
 Comparison of insurance rates in Germany and New York, in 
 
 building trades and coal mining fig. 116, p. 152 
 
 English, Compensation Act of 1897 confined to hazardous 171 
 
 Information under Act of 1906 required in Great Britain only 
 
 from limited number of 214 
 
 Insurance cost in Germany for all fig. 114, p. 146 
 
 Insurance rates in Ohio before and after enactment of Law of 
 
 1910, in various fig. 117, p. 153 
 
 Progress of, in Germany 38 
 
 21 years' German accident prevention in glass, pottery and 
 
 brick fig. 48, p. 107 ; fig. 51, p. 109 
 
 in mechanical and electrical fig. 101, p. 141 
 
 Industry, accident prevention in Germany, in mining 
 
 fig. 46, p. 105 ; fig. 53, p. 110, fig. 54, p. Ill 
 
 Industry and agriculture in Germany, co-operation of 294, 318 
 
 Industry and farm in Germany, comparative hazard of. .figs. 24-25, p. 83 
 
 Industry, comparative hazard of occupation in 83 
 
 Industry, German statistics of 25 
 
 21 years' German accident prevention in chemical 
 
 fig. 45, p. 104; fig. 50, p. 108 
 
 in iron and steel fig. 47, p. 106 ; fig. 52, p. 109 
 
 United States statistics of 25 
 
 Industrial Insurance and old age pensions, system of Clieney Brothers. 401 
 Industrial waste from injuries in Germany compared with loss of life 
 
 in wars 35 
 
 Inflammable substances in Germany, Causes and frequency of acci- 
 
 <^e°ts by fig. 42, p. 94 
 
IITDEX 461 
 
 PAGE 
 
 Injured workers in Germany, compensation a public debt to 49 
 
 Costs of medical attention for 48 
 
 economy in giving prompt medical attention to 51 
 
 Pensions granted in accident compensation, to fig. 9, p. 30 
 
 Four principles governing compensation for 28 
 
 receive aid from sick funds during first 13 weeks 76 
 
 Relation of compensation legislation to 251 
 
 in Great Britain entitled to compensation under Act of 190(1 186 
 
 in the United States, percentage of premiums reaching the 49, 219 
 
 restored to industry as quickly as possible in Germany 47 
 
 per 1000, combined German industries, .fig. 44, p. 103; fig. 49, p. 108 
 per 1000, in chemical industry in Germany . fig. 45, p. 104 ; fig. 50, p. 108 
 per 1000, in glass, pottery and brick industries in Germany 
 
 fig. 48, p. 107; fig. 51, p. 109 
 per 1000, in mining industry in Germany 
 
 fig. 46, p. 105; fig. 53, p. 110 
 per 1000, in iron and steel industry in Germany 
 
 fig. 47, p. 106; fig. 52, p. 109 
 
 Relief in Europe fig. 2, p. 12 
 
 Injured workers, 22 yeai-s' (Jerman history of, in agricultural in- 
 dustry fig. 84, p. 136 
 
 in brewing and malting industry fig. 83, p. 135 
 
 in brickmaking industry fig. 109, p. 144 
 
 in building trades industry fig. 92, p. 138 
 
 in clothing industry fig. 87, p. 137 
 
 in dairy, distilling and starch industries fig. 86, p. 136 
 
 in excavating and tunneling fig. 98, p. 140 
 
 in flour mill industry * .fig- 81, p. 134 
 
 in food and canning industry fig. 103, p. 142 
 
 in gas and water works fig. 113, p. 145 
 
 in glass industry fig. 99, p. 141 
 
 in iron and steel industry fig. 112, p. 145 
 
 in leather industry fig. 110, p. 144 
 
 in manufacture of musical inslrrments fig. 105, p. 143 
 
 in manufacture of paper articles fig. 93, p. 139 
 
 in mechanical and electrical industries fig. 101, p. 141 
 
 in mining industry fig. 106, p. 143 
 
 in miscellaneous metal industries fig. 97, p. 140 
 
 in paper making industry fig. 94, p. 139 
 
 in pottery industry fig. 95, p. 139 
 
 in printing industry fig. 91, p. 138 
 
 in private railway service fig. HI, P- 145 
 
 in quarry industry fig. 88. p. 137 
 
 in state railways, mail and telegraph service fig. 102, p. 142 
 
 in street and interurban service fig. 108, p. 144 
 
 in river and lake navigation fig. 82, p. 135 
 
 in sea navigation and fisheries fig. 96, p. 140 
 
 in sugar industry fig. 90, p. 1.38 
 
 in teaming industry fig. 80, p. 1,34 
 
 in textile industry fig. 89. p. 137 
 
 in tobacco industry fig. 85, p. 1.3(» 
 
 in warehouse industry fig. 107, p. 143 
 
 in woodworking industry fig. 100, p. 141 
 
462 ^^^^^ 
 
 PAGE 
 
 Injuries among farm workers caused by vicious animals, in Ger- 
 many fig- 32, p. 89 
 
 caused by round cutter head on wood planer fig. 58, p. 113 
 
 caused by square cutter liead on wood planer fig. 56, p. 113 
 
 due to carelessness in loading and unloading trucks fig. 122, p. 393 
 
 from careless use of emery-wheels fig. 123, p. 394 
 
 from disease, employer in Great Britain held liable for 231 
 
 Greater production and commerce in Germany have increased ac- 
 cidental ^ 27 
 
 industrial, duration of, in Germany fig. 14, p. 52 
 
 industrial waste from, in Germany, compared with loss of life in 
 
 wars 35 
 
 minor, temporary compensation in Germany for 299 
 
 occupational, in Germany, pensions for during 1908 35 
 
 slight, workers' ideas of, enlarged in Germany 53 
 
 treated by German medical specialists 50 
 
 workers', slight, increase total of industrial accidents in Germany. Ill 
 
 Injury in employment in Europe 4 
 
 in United States basis of recovery in personal 5 
 
 liability for, in England, compensation legislation strives to fix. .. . 205 
 
 personal, by accident in Great Britain 197 
 
 personal, in England, employers personally liable for compensa- 
 tion for 170 
 
 when accelerating diseased conditions, held to be accident in 
 
 Great Britain 199 
 
 Inspection, accident prevention and education essential to successful 
 
 system 267 
 
 and management in German accident prevention, cost of. fig. 43, p. 101 
 Insurance, accident, in Germany, Agricultural occupations included 
 
 in (frontispiece) 287 
 
 Agriculturalists should contribute to 281 
 
 a necessity in Germany 307 
 
 Contributory principle in 57 
 
 Cost of administration of fig. 11, p. 47 
 
 German system, workers' objections to 31 
 
 in hands of employers' associations 274 
 
 laws in Germany, strengthen trade unions 293 
 
 Organization receipts, expenditures and funds for 
 
 fig. 8, p. 36; fig. 10, p. 47 
 
 probably menaced by new government bill 296 
 
 Proportion of costs borne by workers for 57 
 
 reform of Emperor William I. of Germany 33 
 
 Social consequences of 293 
 
 systems of Germany benefit charity associations 286 
 
 system, of Germany not approved by socialists 288 
 
 workers' contribution large enough 281 
 
 workers in Germany do not aid in management of 306 
 
 Insurance Act in Germany, Workers voluntarily coming under 36 
 
 Insurance administration, in Great Britain, Cost of 242 
 
 Administration expense of German compensation 48 
 
 area in Great Britain increased by Act of 1906 230 
 
 assessments made by trained scientific boards of experts in Ger- 
 many 65 
 
INDEX 463 
 
 PAGE 
 
 Insurance, Austrian Territorial system of 319 
 
 associations in Europe, Employers required to belong to IS 
 
 in Germany secure greater safety for workmen ITG 
 
 may be managed in part by workers 293 
 
 in European countries 13 
 
 best guarantee of compensation, in Europe, is 63 
 
 bill, new, in Germany, not favored 318 
 
 British underwriters unable to gauge employers' risks under Act 
 
 of 1906 246 
 
 burdens in Germany dissatisfy small employers 32 
 
 Business and results of four largest companies in Great Britain, 
 
 in 1909, in Employers' Liability (table) 240 
 
 carried at a loss in Great Britain 237 
 
 Insurance companies, Co-operation of with employers' associations 
 
 essential 65 
 
 employers' liability, in Great Britain, business and results of 
 
 four largest (table) 240 
 
 Incompleteness of official records in Great Britain compels re- 
 sort to 228 
 
 in Great Britain not required to make pecuniary guarantee of 
 
 solvency prior to 1909 229 
 
 known either as tarifiE or non-tariff in Great Britain 229 
 
 non-tariff of Great Britain not bound by rate restrictions.... 230 
 Complete medical equipment of Vienna Institution results in les- 
 sening costs of compensation 51 
 
 Comprehensiveness of German system of 30, 37 
 
 compulsory, best for German employers 32, 274, 286 
 
 for all workers in Austria, Denmark, France, Finland, Ger- 
 many, Holland, Hungary, Italy, Luxemburg and Norway. 
 
 fig. 3, p. 13 
 
 in Germany 274 
 
 necessary in Germany 29, 282 
 
 versus optional, in Germany 319 
 
 Cost decreased by mutual 67 
 
 Cost, in Germany, all industries combined, for fig. 114, p. 146 
 
 Cost of litigation in Germany 47 
 
 Cost to German employers, of compensation 132 
 
 Departmental Committee in England recommends compulsory 182 
 
 Differences in premiums paid in Germany for. . . 132 
 
 Each employer in Germany pays share of 46 
 
 Employers should be given freedom in selecting 67 
 
 Estimated cost in Germany, of 147 
 
 Expensiveness and inefficiency of private compensation 308 
 
 Explanations advanced, in Great Britain, for losses in 241 
 
 First accident compensation Bill in Germany enacted in 1881.. 7 
 
 fund, German accident and sickness 50 
 
 Individual liability less desirable than solvent 262 
 
 not in England's first compensation measure 169 
 
 Prompt payment in Germany of sickness 55 
 
 Germany desires universal adoption of obligatory social 38, 39 
 
 German Employers' Associations on mutual basis in carrying acci- 
 dent 48 
 
 German employers bear burden of 283 
 
464 INDEX 
 
 PAGE 
 
 Insurance, German employers pay one-third of the fund for sickness. ... 57 
 German employers plan to obtain increased power over funds for 
 
 sickness 59 
 
 German Socialists control sickness 59 
 
 German statistical tables furnish accurate information on 67 
 
 German statistics of accident, sickness and invalidity 39 
 
 German workers pay two-thirds of the fund for sickness 57 
 
 Growth in Europe of compulsory 65 
 
 Insurance important for smaller employers in Germany 64 
 
 Insurance, industrial, and old age pensions, System of CMfeney Brothers, 
 
 for 401 
 
 Insurance, industrial, in mutual concerns compulsory in Austria and 
 
 Grermany 65 
 
 institutions for accident compensation on mutual basis in Germany 45 
 
 institutions maintained by state in Europe 13, 14 
 
 International Congress in Rome for social 29 
 
 legislation, demands careful consideration 154 
 
 liability, Compensation legislation in Great Britain increases de- 
 mand for 227 
 
 Fallacy of method used in United States to compute cost of . . . 219 
 
 in Great Britain under Compensation Act, first stages of 229 
 
 Methods of compensation 263 
 
 municipal, in Great Britain, against liability to public servants. . 231 
 
 mutual associations, for employers in Great Britain important.... 178 
 
 Insurance (mutual) plan of the General Electric Company 415 
 
 oflScials in Switzerland are extraordinarily expert 58 
 
 optional, in Belgium, England, Spain and Sweden fig. 3, p. 13 
 
 paid in Great Britain during 1909 227 
 
 Percentage of premiums paid in United States reaching injured 
 
 workmen 47, 219 
 
 Personal liability distinct from contributory 20 
 
 premiums 1.2 per cent, of the total amount of litigation expenses 
 
 in Germany 77 
 
 Insurance rates. Accidents eon:i)anies of Great Britain find difficulty in 
 
 formulating 228 
 
 Basis of German. 48, 127 
 
 comparison of New York with those of Germany fig. 115, p. 152 
 
 for agricultural and horticultural industry in Germany, .fig. 84, p. 136 
 
 brewing and malting industry fig. 83, p. 135 
 
 brick making industry fig. 109^ p. 144 
 
 building trades industry fig. 92, p. 138 
 
 clothing industry fig. 87^ p. 137 
 
 dairy, distilling and starch industries fig. 86, p. 136 
 
 excavating and tunneling fig. 98, p. 140 
 
 flour mill industry fig. gl, p. 134 
 
 food and canning industry fig, 103, p. 142 
 
 gas and waterworks .,fig, 113^ p. 145 
 
 glass industry _' -f ^ fig_ 99] p, 141 
 
 iron and steel industry fig. 112, p. 145 
 
 leather industry '.'.'.WW..'.', .'fig! lio! p! 144 
 
 manufacture of musical instruments fig. 105, p. 143 
 
 manufacture of paper articles fig. 93, p. 139 
 
 mechanical and electrical industries fig. 101, p. 141 
 
INDEX 465 
 
 PAGE 
 
 Insurance rates for miniug- industry in Germany fig. lOG, p. 143 
 
 miscellaneous metal industries fig. 97, p. 140 
 
 paper making industry fig. 94, p. 139 
 
 pottery industry fig. 95, p. 139 
 
 printing industry fig. 91, p. 138 
 
 private railways fig. Ill, p. 145 
 
 quarry industry fig. 88, p. 137 
 
 river and lake navigation fig. 82, p. 135 
 
 sea navigation and fisheries fig. 96, p. 140 
 
 state railways, mail and telegraph service , . . .fig. 102, p. 142 
 
 street and interurban rallwajs. ; fig. 108, p. 144 
 
 sugar industry fig. 90, p. 138 
 
 teaming industry fig. 80, p. 134 
 
 textile industry fig. 89, p. 137 
 
 tobacco industry fig. 85, p. 136 
 
 warehouse industry fig. 107, p. 143 
 
 woodworking industry fig. 100, p. 141 
 
 improved by co-operation between employers and insurance com- 
 panies 66 
 
 Insurance rates in Germany higher than in England or United States 
 
 131, 146 
 
 Great Britain under Act of 1906 231 
 
 must be increased in New York for 151 
 
 New York, before and after enactment of Law of 1910. fig. 115, p. 151 
 
 higher than German rates 151 
 
 Ohio, before and after enactment of Law of 1910 fig. 117, p. 153 
 
 per $100 pay roll, for industrial occupations in Germany, in 
 
 1909 fig. 79, p. 133 
 
 reduced by mutual principles and selection of risks 66 
 
 reduced by round cutter heads on wood planers fig. 57, p. 113 
 
 under Workmen's Compensation Acts of 1897 and 1906 in Great 
 
 Britain (table) 232, 233 
 
 Insurance system considered ideal in Germany 282 
 
 Beneficial results on charitable institutions of German 49 
 
 Contributory principle in German 57 
 
 Deferred payments in German accident 40 
 
 Economic and social conditions, of German accident 33 
 
 efiiciency of German 47 
 
 in foreign countries strive to bring employer and employe together. 20 
 
 Low cost of German 48 
 
 mutual in Germany 49 
 
 operated by employers in Great Britain 244, 245 
 
 Radical change not desired in German 292 
 
 Receipts and expenditures of German 36 
 
 should include agricultural industries 302, 306, 310, 312, 315 
 
 Statistics essential to successful 67 
 
 supervised by state, in Germany 46 
 
 Theory of German system of compensation 56 
 
 to compensate sick workers obligatory in Germany ■ 57 
 
 to guarantee compensation must be obligatory 13, 14 
 
 Total cost in Germany of 276 
 
 Unfair competition reduced in Germany by compulsory 38 
 
 Workers' compensation in Germany, under mutual social. fig. 12, p. 49 
 
466 INDEX 
 
 PAGE 
 
 International Conference at the Hague on "The Doctor Question" 54 
 
 on Social Insurance 234 
 
 International Congress for Social Insurance in Rome 29 
 
 International Harvester Company, McCormick Works fig. 118, p. 384 
 
 statement by G. A. Ranney, of th€ 385 
 
 workers' relief and pension system of 385 
 
 International Law Association 16 
 
 Invalidity, sickness and accident insurance in Germany 39, 49 
 
 Investigation essential to sound legislation ^ 261 
 
 Iron and steel industry in Germany, frequency and results of acci- 
 dents in ( frontispiece ) 
 
 German accident prevention in fig. 47, p. 106; fig. 52, p. 109 
 
 22 years' German history of injured workers in fig. 112, p. 145 
 
 Iron foundry, Correct method of catching stream in fig. 119, p. 390 
 
 Incorrect method of catching stream in , fig. 120, p. 391 
 
 Proper kind of clothing to wear in fig. 121, p. 392 
 
 Iron Trade Employers' Association of Great Britain, Ltd 244 
 
 Italy, Compensation laws established in 15 
 
 Compulsory insurance for all workers in fig. 3, p. 13 
 
 Employers pay whole compensation in fig. 4, p. 14 
 
 insurance associations in 13 
 
 simplified court procedure in fig. 5, p. 15 
 
 Jacob, Emil : Secretary League of German Employers' Association .... 291 
 Jahn, W. : Chairman Board of Directors, Employers' Association for 
 
 the Brick Industry 299 
 
 Judicial decisions in Great Britain, effect on rates 230 
 
 K 
 
 Kaufmann, Doctor Paul, president, German Imperial Insurance De- 
 partment 37, 39, 100 (Portrait) 274 
 
 Kraemer, G. : Chairman Employers' Association for the Chemical In- 
 dustry of Germany 296 
 
 "Krankenkassen," German 281, 283 
 
 Kunad, Ferdinand: Chairman Saxonian Thuringian Iron and Steel 
 
 Employers' Association of Germany 318 
 
 L 
 
 Labor, "casual," meaning of term under Act of 1906 in Great Britain 
 
 190, 191 
 
 Labor party in Great Britain a power 249 
 
 Labor T'nions of Germany, growth retarded 281 
 
 Ladders, causes and frequency of accidents in Germany, by falling from 
 
 Fig. 42, p. 94 
 
 Safety feet for, in use in Germany fig. 64, p. 116, Fig. 65, p. 117 
 
 Lake and river navigation in Germany, frequency and results of ac- 
 cidents in (frontispiece) 
 
 Langen, Chairman Board of Directors, Rhenisch-Westphalian Textile 
 
 Employers' Association of Germany 321 
 
INDEX 467 
 
 PAGE 
 
 Law Association, International 16 
 
 Law, Civil, European, contributory negligence formerly not a bar to 
 
 recovery under the 163 
 
 Common, development of, in Great Britain 158 
 
 in Great Britain, contract and circumstances of employment 
 
 under 158 
 
 Compensation, administered in Germany by employers under 
 
 imperial supervision 45 
 
 Continental, different from that of United States 21 
 
 Englieh system, proverbially conservative 157 
 
 in Germany, accident prevention demanded by 289 
 
 Liability, Act of 1906, in England. . .' 185, 186 
 
 of 1910, New York, insurance rates before and after enactment of 
 
 fig. 115, p. 151 
 of 1910, Ohio, insurance rates before and after enactment of 
 
 fig. 117, p. 153 
 Workmen in Great Britain may secure compensation from employer 
 
 after action at 189 
 
 Laws, accident prevention, in Germany strengthen trade unions 293 
 
 American liability, based on English Common Law 157 
 
 Comi)ensation, in Germany 2G 
 
 for injured workers, in Europe fig. 2, p. 12 
 
 liability, United States Supreme Court on confusion of 163 
 
 United States, on industrial insurance 75 
 
 Lawsuits made impossible in Germany 302 
 
 League of German Employers' Associations 100, 290, 291 
 
 Leather industry in Germany, accidents in (frontispiece) 
 
 Employers' association for the 282, 283, 284 
 
 22 years history of injured workers in fig. 110, p. 144 
 
 Lechner, Ernst, Chairman Machine Builders' and Hardware Manu- 
 facturers' Association of Germany 280, 292 
 
 Legal accident prevention regulations drafted by commissions in Ger- 
 many 31 
 
 Legal basis of Germany's compensation system 27 
 
 counsel may be engaged by both sides in German arbitration courts 77 
 
 process of compensation award in Germany 76 
 
 provisions for injured workers in Germany 28 
 
 Legislation, Careful investigation essential to sound 261 
 
 Comparison of European compensation 16 
 
 compensation, circumstances producing British 22 
 
 Germany the authority on 22 
 
 in England, strives to fix liability for injury in 205 
 
 in Europe, proceeds from carefully compiled information 211 
 
 in Germany, most beneficial ever undertaken 296 
 
 in Germany, relation of injured workmen to 251 
 
 in Great Britain, influenced by trade unions and Labor Party 249 
 
 in Great Britain, primal defects of 249-253 
 
 in Great Britain, relation of workman to 251 
 
 Legislation, European, adapted to our form of government would prove 
 
 beneficial 260 
 
 for workmen's protection in Germany, great achievement 290 
 
 in Great Britain exercises influence on our legislatures 21 
 
 Insurance, demands careful consideration 154 
 
468 INDEX 
 
 PAGE 
 
 Legislation, Legal l»asis of compensatory 11 
 
 Liability in England, additional 169 
 
 Principles of European 259 
 
 proposed in Switzerland covering all accidents 58 
 
 Legislators, co-operation necessary in accident prevention in the United 
 
 States • 112 
 
 Legislatures, German, accident prevention constantly agitated in 127 
 
 in many European countries exercise supreme authority 21 
 
 Liability Act, Employers', Enacted in England, 1880. ..• 164, 165 
 
 in Great Britain, workmen prefer Compensation Act to 223 
 
 Liability and compensation in Germany 131 
 
 elimination of Individual 30 
 
 Liability, Employers, Act of 1880 did not stop agitation in England 
 
 for increase of 169 
 
 basis of, in United States 5 
 
 Development of common law in Great Britain, on 158 
 
 formerly defined by contract of service in England 158 
 
 formerly relieved of, by agreement with the workman 160 
 
 greater in United States than in England 165 
 
 in Great Britain before adoption of compensatory principle.. 157 
 
 in Switzerland fig. 2, p. 12 
 
 in United States, Fallacy of method used to compute 219 
 
 outlines vague, in Great Britain 246 
 
 Provisions of Act of 1897 in England 170 
 
 uncertainty of, under English compensation Acts of 1897 and 
 
 1900 178 
 
 versus accident compensation in Germany 293 
 
 employers safeguarded by obligatory insurance from excessive. .30, 61 
 
 Extent of, under Act of 1880 in England 165 
 
 Fire insurance companies of Great Britain gone into Employers' . . 241 
 for injury in Great Britain, compensation legislation strives to fix 205 
 
 imposed on employer in Great Britain by Act of 1906 189 
 
 increased under Act of 1906 235 
 
 Individual, indefinite in Great Britain 252 
 
 Extension of, to representatives of employers under Lord 
 
 Campbell's Act 161 
 
 if established, formerly required employer to indemnify in- 
 jured workmen 160 
 
 in Great Britain affected by serious and willful misconduct. . 203 
 
 in Great Britain, Early diflSculty of proving. . . . .' 161 
 
 instances where it may, or may not exist 196 
 
 not preferable to solvent insurance fund 262 
 
 insurance, business of fifty-five companies in Great Britain in 
 
 1908 (table) 238, 239 
 
 business of four largest companies in Great Britain in 1909 
 
 (table) 240 
 
 cost of administrating in Great Britain 242 
 
 percentage of premiums paid reaching injured workmen in the 
 
 United States 47, 219 
 
 under Compensation Act, first stages of 229 
 
 under compensation legislation in Great Britain, increased 
 
 demand for 227 
 
 Law, Employers' of 1881 in Germany 7 
 
INDEX 469 
 
 PAGE 
 
 Liability Laws, Employei-s' amendment to, in England 169 
 
 in Great Britain, Act of 1906 185 
 
 laws, Switzerland employers' 11 
 
 former, of Germany, a mistake 304 
 
 opinion of United States Supreme Court on confusion of.... 163 
 
 legislation, in England, additional 169 
 
 principles and policy of English 9 
 
 personal, distinct from contributory insurance 2o 
 
 in England, Departmental Committee favors insurance by. 181, 182 
 
 in Great Britain, doctrine of 249 
 
 shifting responsibility from individual to industry 19 
 
 single creation of, essential 264 
 
 German system recognizes importance of 79 
 
 system, wastefulness of United States employers' 45 
 
 to public servants in Great Britain, municipal insurance against. . 231 
 Life saving devices in German accident prevention, premiums paid for 
 
 fig. 43, facing p. lOl 
 
 Linen Manufacturers' Association of Germany 316 
 
 Litigation expenses in Germany 1.2 per cent, of total insurance premiums 77 
 in England, unduly caused by Compensation Acts of 1907 and 
 
 1900 175, 176 
 
 insurance, cost of German 47 
 
 under Act of 1906 in Great Britain 223 
 
 Loading and unloading in Germany, causes and frequency of accidents 
 
 in fig. 42, facing p. 94 
 
 London Conference of the International Law Association 16 
 
 Lord Campbell's Act in England 160 
 
 Lump sum payments protected in Great Britain 206 
 
 Luxemburg, compulsory insurance for all workers in fig. 3, p. 13 
 
 insurance associations in 13 
 
 workmen or state contribute in fig. 4, p. 14 
 
 Luzatti converted to obligatory principle 29 
 
 M 
 
 Machine Builders' and Hardware Manufacturers' Association of Ger- 
 many 281, 282, 291 
 
 Maffei, H. R. V. : Chairman South German Iron and Steel Etoploy- 
 
 ers' Association ' 326 
 
 Manes, Professor Doctor, European expert on accident insurance 
 
 48, 57, 146, 147, 150, 284 
 Manufacture of musical instruments in Germany, Injured workers 
 
 in fig. 105, p. 143 
 
 paper articles in Germany, Injured workers in fig. 93, 139 
 
 Manufacturers in Germany, Effects of compensation system on 
 
 295, 296, 303, 311 
 Marggrafif, Karl : Cliairman, Paper Manufacturers' Association of Ger- 
 many 287 
 
 Massachusetts Supreme Court decides "Fellow Servant Doctrine . . . 162, 163 
 May, Martin, Chairman Employers' Association for Leather Industry 
 
 of Germany 284 
 
 Meat industry in Germany, Frequency and results of accidents in 
 
 (frontispiece) 
 
470 INDEX 
 
 PAGE 
 
 Mechanical and electrical trades in Germany, Injured workers in 
 
 fig. 101, p. 141 
 
 Frequency and results of accidents in (frontispiece) 
 
 Statistics of 38 
 
 Medical aid and accident prevention 260 
 
 should be promptly given • . . 51, 265 
 
 Medical and funeral expenses in Great Britain, Employer liable for, 
 
 under Act of 1906 186 
 
 Medical attendants in Germany, Efficiency of 53 
 
 Medical attention in Germany, a part of compensation • 48 
 
 considered immediately necessary 50 
 
 Cost of : 48 
 
 in Great Britain not required by Compensation Act of 1906 250 
 
 Progressive employers in United States recognize importance of 
 
 immediate 50 
 
 Medical examination and compensation in Great Britain, Revision of 
 
 Act of 1906 188 
 
 Medical examination in Germany, made by arbitration courts 77 
 
 Medical referee in England, Importance of conclusive evidence by 181 
 
 Medical specialists in Germany, All injuries treated by 50 
 
 Metal industry in Germany, Frequency and results of accidents in 
 
 (frontispiece) 
 Metzenthin, O. : President, Board of Directors, North German Textile 
 
 Employers' Association 325 
 
 Milan, Accident prevention institution in 120 
 
 Millerand converted to obligatory principle 29 
 
 Mine employment in England a hazardous industry 171 
 
 Mine workmen in Great Britain under Act of 1906 192 
 
 Mining (Coal), in New York and Germany, Comparison of insurance 
 
 rates in fig. 116, p. 152 
 
 Mining in Germany, Accident prevention in 
 
 fig. 46, p. 105; fig. 53, p. 110; fig. 54, p. Ill 
 
 Frequency and results of accidents in (frontispiece) 
 
 Injured workers in fig. 106, p. 143 
 
 Minor injuries in Germany, Temporary compensation for 299 
 
 Miscellaneous metal industries in Germany, Injured workers in 
 
 fig. 97, p. 140 
 Miscellaneous occupations in Germany, Causes and frequency of acci- 
 dents in fig. 42, p. 94 
 
 Misconduct, serious, in Great Britain, Definition of 204 
 
 in Great Britain, Effects on compensation and liability of 203 
 
 Montana, compensatory principle recognized in 18 
 
 Mortality statistics, in Germany, 1905-07 fig. 7, p. 36 
 
 Munich, Germany : Accident prevention institutions in 120 
 
 Municipal insurance in Great Britain, against liability to public ser- 
 vants 231 
 
 Museum exhibits in Europe, character of 123 
 
 Museums, needed in United States to exhibit safety appliances 268 
 
 Musical instruments manufacture in Germany, Frequency and results 
 
 of accidents in (frontispiece) 
 
 Mutual contributory principle in Germany 49, fig. 17, p. 58 
 
 in Switzerland, proposed plan of fig. 18 p. 58 
 
 Mutual insurance compulsory in Austria and Germany 65 
 
INDEX 471 
 
 PAGE 
 
 Mutual insurance employers' associations in England, Importance 
 
 of 178, 244, 245 
 
 Mutual insurance plan of the General Electric Company of the United 
 
 States 415 
 
 Mutual principles of insurance and selection of risks may reduce rates. 66 
 Mutual social insurance in Germany, Workers' compensation in 
 
 fig. 12, p. 49 
 workers' contribution to fig. 13, p. 49 
 
 N 
 
 Nagel, Hon. Charles : Secretary of Commerce and Labor, statement by . 381 
 
 National Association of Manufacturers of tlie United States 381 
 
 National Association of Manufacturers aided by prominent German 
 
 experts 273 
 
 declares importance of accident prevention ' 99 
 
 findings and recommendations of the Committee on Industrial 
 
 Liability and Accident Prevention of the 259 
 
 National relief system v^ill not interefer v^ith individual employer's 
 
 action 381 
 
 Navigation in Germany, causes and frequency of accidents in . . fig. 42, p. 94 
 Neisser, Doctor, Chief Counsel for German Employers' Accident In- 
 surance Association 8, 27 
 
 Netherlands, insurance associations in 13 
 
 New York and Germany, comparison of insurance rates in. .fig. 116, p. 152 
 
 New York ; compensation insurance rates must be increased 151 
 
 compensatory principle recognized in 18 
 
 hazardous occupations in building trades of 83 
 
 insurance rates before and after enactment of Law of 1910 in 
 
 fig. 115, p. 151 
 
 Insurance rates in Germany lower than in 151 
 
 New Zealand, compensation laws established in 15 
 
 Non-fatal and fatal accidents by trades in Canada from 1904-1909 
 
 (table), 377, 378 
 
 Northeastern Iron and Steel Employers' Association of Germany.... 306 
 
 North German Metal Trades Employers' Association 312 
 
 North German Textile Employers' Association 325 
 
 Norway, compensation laws established in 15 
 
 compulsory insurance for all workers in fig. 3, p. 13 
 
 insurance associations in 13 
 
 simplified court procedure in fig. 5, p. 15 
 
 workmen or state contribute in fig. 4, p. 14 
 
 O 
 
 Obligatory insurance in Germany, has reduced unfair competition 38 
 
 has united employers 38 
 
 Results changed to voluntary performance in 100-101 
 
 suggested for universal adoption 38 
 
 Occupational accidents in Germany, causes and frequency of agricultural 
 
 fig. 41, p. 94 
 
 Compensation for ; . . 47 
 
472 INDEX 
 
 PAGE 
 
 Occupational accidents, Deaths caused by 
 
 fig. 6, p. 35; fig. 7, p. 36; fig. 25, p. 83 
 
 lasting over thirteen weeks fig. 24, p. 83 
 
 Partial iiermanent disability from fig. 27, p. 84 
 
 Permanent and complete disability caused by fig. 2(5, p. 84 
 
 Responsibility for fig. 15-lG, p. 55 
 
 Temporary disability from fig. 28, p. 85 
 
 Occupational diseases in Great Britain, marked increase in 221 
 
 under Act of 1906 in Great Britain 186 
 
 Occupational injuries in Germany, pensions paid for. 35 
 
 Occupations, causes and frequency of accidents in Germany by fig. 42, p. 94 
 
 embraced under the Act of 1906 in Great Britain 192, 193 
 
 industrial, insurance rates per $100 pay roll, in Germany fig. 79, p. 133 
 
 necessity for obligatory compensation in hazardous 55, 83 
 
 Ohio, insurance rates and compensation legislation in.. 152; fig. 117, p. 153 
 Old age pensions and industrial insurance : system of Cheney Brothers 401 
 Optional insurance for workers' compensation in European countries 
 
 fig. 3, p. 13 
 
 P 
 
 Paper articles, frequency and results of accidents in manufacture of 
 
 (frontispiece) 
 Paper making in Germany, frequency and results of accidents in 
 
 (frontispiece) 
 
 injured workers in fig. 94, p. 139 
 
 Paper Manufacturers' Association of Germany 286, 287 
 
 Paris, working exhibition of safety appliances in 120 
 
 Payments, by workers and receipts from German social insurance system 49 
 
 in German accident insurance system, deferred 40 
 
 in lump sum protected in Great Britain 206 
 
 weekly, to injured workers in Germany 49 
 
 Pension and workers' relief, system of the International Harvester Com- 
 pany 385 
 
 Pension in Germany for slight physical injuries, should be abolished.. 300 
 
 for injury 33^ 34 
 
 one for every 63 inhabitants 35 
 
 to injured workers fig. 9^ p. 36 
 
 Pension, old age, and industrial insurance, system of Cheney Brothers 401 
 
 old age, in Germany, not granted to paupers 147 
 
 Personal liability in Great Britain, doctrine of 249 
 
 Pest, Franz: Chairman, North German Metal Trades Employers' As- 
 sociation 322 
 
 Physical examination of applicants for employment required in Great 
 
 Britain 231 
 
 Pottery industry in Germany, frequency and results of accidents in 
 
 (frontispiece) 
 mjured workers in fig 95^ p ^39 
 
 Preventive devices, simple, the most effectice '. . , 116 
 
 Prevention of accidents in Germany a business proposition 112 
 
 in Germany, cost of fig. 43, p. 101 
 
 in Germany placed on practical basis 314 
 
 pays as a business proposition 112 
 
INDEX 473 
 
 PAGE 
 
 Prevention spirit desirable in the United States 126 
 
 Priestly vs. Fowler, case in England establishing "Fellow Servant 
 
 Doctrine" 162 
 
 Principles of compensation in Great Britain decided under Act of 1906 202 
 
 Principles of European Legislation 259 
 
 Printing industry, in Germany, injured workers in fig. 91, p. 138 
 
 Printing in Germany, frequency and results of accidents in. . (frontispiece) 
 Private railways in Germany, frequency and results of accidents in 
 
 (frontispiece) 
 
 injured workers in fig. Ill, p, 145 
 
 Professional players (sports) in Great Britain under Act of 1906.... 193 
 Professional service in Germany, statistics of 25 
 
 in United States, statistics of 25 
 
 Public service in Germany, statistics of 25 
 
 in United States, statistics of 25 
 
 Quarry employment in England a hazardous industry 171 
 
 Quarry industry in Germany, frequency and results of accidents in 
 
 (frontispiece) 
 
 injured workers in fig. 88, p. 137 
 
 Quarry workmen in Great Britain under Act of 1906 192 
 
 Quebec, compensation laws established in 15 
 
 Railway employment in England, a hazardous industry 171 
 
 servants, in Great Britain, under Act of 1906 192 
 
 Railways in Germany, causes and frequency of accidents by. .fig. 42, p. 94 
 
 Ranney, G. A. : of the International Harvester Company, statement by 385 
 
 Rates in Great Britain, continuing instability of 234 
 
 Receipts, of accident insurance and compensation system of Germany 
 
 fig. 8, p. 36 
 
 Recovery, equitable grounds for 260 
 
 Reichstag, German, bills before the 32, 45 
 
 Relief, accident, German literature on 99 
 
 associations, voluntary, in the United States 381 
 
 for injured workers in Europe fig. 2, p. 12 
 
 industrial, has secured higher efficiency in Germany 101 
 
 national, will not interfere with individual employers' action.... 381 
 
 statistics of in Germany 33 
 
 Responsibility, collective, in Germany 28 
 
 employers' financial, in Europe 63 
 
 for agricultural accidents in Germany •. .fig. 16, p. 55 
 
 for industrial accidents in Germany fig. 15, p. 55 
 
 for occupational accidents in Germany figs. 15-16, p. 55 
 
 individual, in Germany 28, 316 
 
 workmen's sense of, in Germany, lessened by compensation 295 
 
 Rhenisch-Westphalian Textile Employers' Association of Germany... 321 
 
 Ridgway Company, booklet of 55, 56 
 
 Right of action in England formerly ended with death of employer or 
 
 employe 160 
 
474 INDEX 
 
 PAGE 
 
 Risks, accidents arising during work from unavoidable 259 
 
 defence of, assumed, in England 109 
 
 reserve, in Great Britain • 231 
 
 taken under Compensation Act in Great Britain underwritten at 
 
 a loss 235 
 
 River and lake navigation, in Germany, frequency and results of ac- 
 cidents in (frontispiece) 
 
 injured workers in Germany, in fig. 82, p. 185 
 
 Rotger, Mr.: Chairman, Central Federation of German Industrialists.. 326 
 Ruegg, Judge Alfred Henry, English authority upon compensation act 
 
 of 1897 180 
 
 Interpretation of "accident" by 198 
 
 summary of principles by 195, 196 
 
 Russia, compensation laws in 15 
 
 S 
 
 Safeguards in American factories 126 
 
 .Safety appliance bill pending before the German Reichstag 45 
 
 Safety appliances, a paying proposition for employers 66 
 
 for woodworking machines, fig. 59, p. 114; fig. 60, p. 114; fig. 61, 
 p. 115; fig. 62, p. 115; fig. 63, p. 115; fig. 124, p. 395; 
 
 fig. 125, p. 396; fig. 126, p. 397; fig. 127, p. 897 
 
 will not prevent human carelessness 103 
 
 Safety covers for street openings, in use in Germany fig. 66, p. 118 
 
 Safety devices for handling hot metal fig. 76, p. 126; fig. 77, p. 127 
 
 for handling steel plates and beams fig. 75, p. 125 
 
 painted red to attract workers' attention, in Germany. . . .fig. 29, p. 88 
 
 "Safety feet for ladders in use in Germany fig. 64, p. 116 
 
 Safety method of loading and unloading round timber fig. 73, p. 123 
 
 of loading and unloading scrap iron by electro-magnets . . fig. 74, p. 124 
 Safety Museum in Berlin, views of . . . .figs. 69 and 70, pp. 120 and 121 
 
 in Munich, views of figs. 71 and 72, p. 122 
 
 Sailors included in German compensation laws 26 
 
 Saxonian-Thuringian Iron and Steel Employers' Association of Germany 318 
 
 Saxonian Woodworkers' Employers' Association 287, 288, 289 
 
 Schmidt, Robert : Social Democratic Member of Reichstag of Ger- 
 many 322, 823 
 
 Schurer, Richard: Chairman South German Textile Employers' Asso- 
 ciation 320 
 
 Scrap iron, safely loaded and unloaded by electro-magnets fig. 74, p. 124 
 
 Seamen under Act of 1906 in Great Britain 192 
 
 Sea navigation and fisheries in Germany, Frequency and results of ac- 
 cidents in (frontispiece) 
 
 injured workers in fig. 9(5^ p. 140 
 
 •Senate, (Court of Last Resort) in compensation claims, in Germany, 
 
 Decisions of fig. 28, p. 78 
 
 •Servants, domestic, under Act of 1908 in great Britain 192 
 
 in shops, hotels and public houses, in Great Britain, under Act 
 
 of 1908 192 
 
 Shaw, Chief Justice, established "Fellow Servant Doctrine" in United 
 
 States in 1842 1(32, 163 
 
 Shipbuilding and Engineering Employers' Association in Great 
 
 Britain 244, 245 
 
INDEX 475 
 
 PAGE 
 
 Sick funds in Gei-many 50, 281, 283, 301, 309, 312, 315 
 
 workers' attitude toward 287 
 
 •Sickness insurance in Germany obligatory 57 
 
 Sickness, accident and invalidity insurance in Germany 39, 49 
 
 ■Sickness insurance funds in Germany, Employers pay one-third to.... 57 
 
 employers planning to obtain increased power over 59 
 
 Simulation caused by eliminating waiting period 55 
 
 Socialists control 59 
 
 Workers pay two-thirds of 57 
 
 ^Simulation in Germany 53, 54, 58 
 
 Co-operation of wage workers necessary in elimination of 55 
 
 made difficult 281,283 
 
 not easily remedied 305, 310 
 
 reduced by waiting time 298 
 
 Steps taken by German Employers' Associations to reduce b4 
 
 ^Social consequences of accident insurance in Germany 293 
 
 ^Social insurance system of Germany admired in France 149 
 
 Beneficial results of German 37 
 
 Economic importance of German 40 
 
 Efficiency of German 47 
 
 Germany desires universal adoption of her 38 
 
 International Conference at the Hague on 234 
 
 International Congress in Rome on 29 
 
 mutual and contributory, in Germany 49 
 
 State, employers and workers contribute toward maintenance of 
 
 German 49 
 
 Workers' compensation in Germany under fig. 12, p. 49 
 
 Workers' contribution to fig. 13, p. 49 
 
 Workers' payments to and receipts from 49 
 
 Socialistic demands in Germany 322 
 
 doctrines in Germany ; compensation system fatal to 317 
 
 Socialists in Germany control sickness insurance funds 59 
 
 do not approve of accident insurance system 288 
 
 Social political theorists in Germany 32 
 
 "Society of Prevention Engineers in Germany 103 
 
 of Germany on accident prevention 99 
 
 "South German Iron and Steel Employers' Association 326 
 
 South German Textile Employers' Association 320 
 
 Spain, Compensation laws established in 15 
 
 Employers pay whole compensation in fig. 4, p. 14 
 
 Optional insurance for workers in fig. 3, p. 13 
 
 Regular court procedure, for settling disputes in fig. 5, p. 15 
 
 Spiecker, Doctor F. A. : Chairman, League of German Employers' As- 
 sociation 37, 100, 278 
 
 (Portrait) p. 278 
 
 Spinning machines, showing right and wrong way to remove twine 
 
 from shaft figs. 128 and 129, p. 398 
 
 Standard specifications provided in Germany for all types of machinery 128 
 Starch, dairy, and distillery industries in Germany, Frequency and 
 
 results of accidents in (frontispiece) 
 
 State and worker, in Switzerland, proportion of premiums as pro- 
 posed for fig. 18, p. 58 
 
476 INDEX 
 
 PAGE 
 
 State, employers and workers contribute toward maintenance of social 
 
 insurance in Germany 49 
 
 State or workmen -contribute in European countries fig. 4, p. 14 
 
 State railways, mail and telegraph service, in Grermany, Injured 
 
 workers in fig. 102, p. 142 
 
 State supervision in Europe of insurance associations 13 
 
 Statistical table of fatal and non-fatal accidents by trades in Canada, 
 
 (table) 37, 378 
 
 Statistics, Accurate information obtained from German insurance.... 67 
 
 comparative, of accidents in Germany and United States 25, 95 
 
 Conclusions on British compensation 224 
 
 Erroneous, of cost of compensation insurance in Great Britain , . . 218 
 
 German invalidity, accident and sickness insurance 89 
 
 Great value of German 201 
 
 Incompleteness of, British 218, 224 
 
 Necessity, in United States, for accurate 268 
 
 not kept 211 
 
 of Act of 1897. Commentary of Home office on 211 
 
 of German relief system 33 
 
 Scientific prevention and insurance impossible without accurate. . 67 
 
 showing burden of the Act of 1906 220 
 
 showing cost of compensation insurance in Germany 52 
 
 showing degree of hazard in Germany 284 
 
 Steam boilers in Germany, causes and frequency of accidents by 
 
 fig. 42, facing p. 94 
 
 Steel plates and beams, devices for safe handling of fig. 75, p. 125 
 
 Stemenberg, August: Chairman, Linen Manufacturers' Association 
 
 of Germany 316 
 
 Stock raising. Statistics of American 25 
 
 Statistics of German 25 
 
 Street and interurban railways in Germany, frequency and results of 
 
 accidents in (frontispiece) 
 
 Injured workers in fig. iQg, p. 144 
 
 Sugar industry in Germany, Frequency and results of accidents in... 
 
 (frontispiece) 
 
 Injured workers in fig. 90, p. 138 
 
 Suicide in Great Britain bars recovery of compensation 203 
 
 Supreme Court of Massachusetts, establishment by Chief Justice Shaw 
 
 of "Fellow Servant Doctrine" in 162, 163 
 
 Sweden, Insurance associations in 13 
 
 Optional insurance for workers in fig. 3, p. 13 
 
 Regular court procedure, for settling disputes in fig. 5, p. 15 
 
 Workmen or state contribute in fig. 4, p. 14 
 
 Switzerland, Employers' liability law in '. . . n 
 
 government contribution to accident compensation fund in 58 
 
 Insurance officials very expert in 58 
 
 Mutual contributory principle as proposed in fig. 18, p. 58 
 
 only European country with employers' liability system, .fig. 2, p. 12 
 
 Proposed bill covering all accidents in 58 
 
 showing proportion of cost of compensation imposed on em- 
 ployers, workers and state, in fig. 18, p. 58 
 
 Workers' contribution in ' ' 5 j ^ 
 
INDEX 477 
 
 Tariff rates on workmen's compensation in Great Britain, increases 
 
 in (table) 236 
 
 Teaming accidents in Germany, caused by careless loading and unload- 
 ing fig. 122, p. 393 
 
 frequency and results of (frontispiece), fig. 42, p. 94 
 
 injured workers in fig. 80, p. 134 
 
 Team Owners' Association of Germany 294 
 
 Telegraph, marine and army, German compensation laws include .... 26 
 
 Territorial associations versus German sj'stem 292 
 
 Textile industry in Germany, frequency and results of accidents 
 
 in (frontispiece/ 
 
 Injured workers in fig. 89, p. 137 
 
 safe loading of, in Germany fig. 34, p. 90 ; fig. 73, p. 123 
 
 Threshing machine without and with safety devices in Germany 
 
 fig. 30, p. 91 
 Tobacco industry in Germany, frequency and results of accidents in 
 
 (frontispiece) 
 
 Injured workers in fig. 85, p. 136 
 
 Tools, in Germany, causes and frequency of accidents by 
 
 fig. 42, facing p. 94 
 
 Trade and transportation, German statistics of 25 
 
 United States statistics of 25 
 
 Trade hazard, principle of 6 
 
 Trade risk in Germany and England, comparison of 10 
 
 Trade schools in Germany teach accident prevention 127 
 
 Trade unions in Germany, accident insurance laws strengthen the.... 293 
 
 compensation system does not strengthen 301, 309, 314, 317 
 
 Influence compensation in Great Britain 249 
 
 Trades, fatal and non-fatal accident in Canada, by (table) 378 
 
 German statistics of electrical and mechanical 38 
 
 hazardous occupations in building 83 
 
 Transportation, German compensation laws include land and water. . 26 
 
 Tunneling, compensation laws in Germany include 26 
 
 frequency and results of accidents in (frontispiece) 
 
 U 
 
 Underwriters unable to gauge employers' risks under Compensation Act 246 
 
 United States, Accident prevention necessary in 112 
 
 Accident statistics essential in 268 
 
 Adjustment of compensation in 269 
 
 Agricultural hazard less in Germany than in 93 
 
 Agricultural statistics of 25 
 
 Comparison of German statistics with 25 
 
 Compensation measures will attract farm labor in 94 
 
 Congress passes restricted statute of compensation 18 
 
 Employers' liability less in England than in 165 
 
 Employers safeguard their factories in 126 
 
 English Compensation Act of 1880 closely followed in 165 
 
 English statutory laws copied by 158 
 
 Established custom basis of law in 21 
 
478 INDEX 
 
 I'AGE 
 
 United States, Fallacy of method used to compute cost of insurance in. . 219 
 
 "Fellow Servant Doctrine" established in 1842, in 162 
 
 German experience and statistics of great value to 261 
 
 importance of accident prevention in 99 
 
 • industrial statistics of 2^ 
 
 insurance rates lower than in Germany 131 
 
 Insurance values compared with those of England and Germany. . 150 
 
 legislation influenced by British legislation 21 
 
 liability laws based on English common law ^ 15T 
 
 Museums of safety appliances essential in 268- 
 
 Opinion of Supreme Court on the confusion of liability laws in 163 
 
 Opportunity for philanthropists in 102' 
 
 Percentage of money paid by employers for liability insurance 
 
 reaching the workers in 47, 219* 
 
 Persuasive legislation in 267 
 
 Prevention spirit desirable in 126- 
 
 Principle of immediate medical attention recognized in 50^ 
 
 Recognition of the compensatory principle in 18- 
 
 Sound policy of compensation a primary consideration in 266, 267 
 
 Trade and transportation statistics of 25 
 
 Uniform compensation principles needed in 266- 
 
 Voluntary compensation for injuries should be encouraged in ... . 267 
 
 Voluntary relief associations in 381 
 
 Wastefulness of present employers' liability system in 45« 
 
 V 
 
 Vienna accident prevention Institution 120- 
 
 savings in compensation of, by eflScient medical stations 51 
 
 Gruesome exhibit at fig. 78, p. 128- 
 
 Voluntary action by employers in compensation should receive public 
 
 encouragement in United States 267 
 
 Voluntary relief associations in the United States 381 
 
 W 
 
 Warehouse industry in Germany, frequency and results of accidents 
 
 in (frontispiece) 
 
 22 years' history of injured workers in fig. 107, p. 143; 
 
 Waldschmidt, Doctor W 284, 285- 
 
 William I, Emperor of Germany, Accident insurance reform of 33- 
 
 Woodworkers' Association, German Southwestern 303. 
 
 Woodworking industry in Germany, frequency and results of acci- 
 dents in (frontispiece) 
 
 22 years' history of injured workers in fig. 100, p. 141' 
 
 Woodworking machines in Germany, safety appliances for, fig. 59, 
 p. 114 ; fig. 60, p. 114 ; fig. 61 and 62, p. 115 ; fig. 63, 
 p. 115 ; fig. 124, p. 395 ; fig. 125, p. 396 ; fig. 126, p. 397 ; 
 
 fig. 127, p. 397 
 
 Worker in Germany knows he is protected 311, 314, 319* 
 
 Workers, Accidents to men in Germany more frequent than to women. . 69' 
 
 aged, not barred from employment in Germany 69' 
 
 Cause and frequency of accidents to fig. 41, p. 94 
 
INDEX 479- 
 
 PAGE 
 
 Workers appreciate compensation system in Giermany 278 
 
 Average ratio to employers in Germany of 64 
 
 chosen as judges in German arbitration courts taken from industry 
 
 in which accident happened 76 
 
 compensated in Germany, when injured by unavoidable accidents. . 46- 
 
 Compensation for accidents, a public debt to injured German 49- 
 
 contribute 66 per cent, of the sick funds, in Germany 76 
 
 Do not aid in management of accident insurance in Germany.... 306 
 
 Duty of state to protect 46 
 
 feel sure of their rights in Germany 304 
 
 have no voice in the administration of compensation funds in 
 
 Germany ' 58- 
 
 Importance of co-operation among wage 55 
 
 Industrial groups of German injured 132" 
 
 injured, Pensions granted in Germany to fig. 7, p. 36 
 
 restored to industry as quickly as possible. 47 
 
 Joint contributions foster harmonious relations between employers 
 
 and 5T 
 
 killed in Germany during 1908 34 
 
 Liability insurance percentage in United States reaching the in- 
 jured 47 
 
 may help manage insurance associations in Germany 293 
 
 must not be exposed to unnecessary risks by master under common 
 
 law of England 159 
 
 pay two-thirds of the Gerihan sickness insurance fund 57 
 
 Pensions paid to, in Germany during 1908 for occupational injuries 35- 
 
 Percentage of, employed in small plants, in Germany 64 
 
 Permanently disabled in Germany during 1908 34 
 
 Permanently maimed in Germany during 1908 34 
 
 Policy in Germany is to increase efficiency of 147 
 
 Proportion of compensation in Germany borne by 57 
 
 Protected by obligatory insurance 20- 
 
 Protected by safety devices for handling hot metal 
 
 fig. 76, p. 126; fig. 77, p. 127 
 
 receive medical treatment and support from sick funds in Germany 76- 
 
 Represented in commissions in Germany 31 
 
 satisfied with accident insurance in Germany 282, 297, 309 
 
 Slight injuries increase total of industrial accidents in Germany, to 110- 
 
 temporarily disabled in Germany during 1908 34 
 
 Total number during 1908, in Germany, of injured 34 
 
 22 years' German history of, in agricultural industry, .fig. 84, p. 136 
 
 in brewing and malting industry fig. 83, p. 135 
 
 in brick-making industry fig. 109, p. 144 
 
 in building industry fig. 92, p. 138> 
 
 in clothing industry fig. 87, p. 137 
 
 in dairy, distilling and starch industries fig. 86, p. 136 
 
 in excavating and tunneling fig. 98, p. 140* 
 
 in flour mill industry fig. 81, p. 134 
 
 in food and canning industry fig. 103, p. 142^ 
 
 in gas and waterworks fig. 113, p. 145 
 
 in glass industry fig. 99, p. 141 
 
 in iron and st^eel industry fig. 112, p. 145- 
 
 in leather industry fig. 110, p. 144 
 
i 
 
 480 INDEX 
 
 PAGE 
 Workers, 22 years' German history of, in manufacture of paper 
 
 goods fig. 93, p. 139 
 
 in manufacture of musical instruments fig. 105, p. 143 
 
 in mechanical and electrical industries fig. 101, p. 141 
 
 in mining industry fig. 106, p. 143 
 
 in miscellaneous metal industries fig. 97, p. 140 
 
 in paper-making industry fig. 94, p. 139 
 
 in pottery industry fig. 95, p. 139 
 
 in printing industry # ... .fig. 91, p. 138 
 
 in private railway service fig. HI, p. 145 
 
 in quarry industry fig. 88, p. 137 
 
 in river and lake navigation fig. 82, p. 135 
 
 in sea navigation and fisheries fig. 96, p. 140 
 
 in street and interurban service fig. 108, p. 144 
 
 in state railways, mail and telegraph service fig. 102, p. 142 
 
 in sugar industry fig. 90, p. 138 
 
 in teaming industry fig. 80, p. 134 
 
 in textile industry fig. 89, p. 1^ 
 
 in tobacco industry . .fig. 85, p. 136 
 
 in warehouse industry fig. 107, p. 143 
 
 in woodworking industry fig. 100, p. 141 
 
 voluntarily come under Insurance Act in Germany 36 
 
 Weekly payments in Germany to injured 49 
 
 Workers and employers. Accidents, in Germany, due to fault of 55 
 
 antagonized, in United States, by present laws 75 
 
 given demonstrations at German accident appliance exhibitions. . . 123 
 Workers, Employers and State contribute toward maintenance of social 
 
 insurance system in Germany 49 
 
 Workers' accident compensation insurance in Germany 99 
 
 Estimated costs of 147 
 
 Workers' and State's proportion of premiums as proposed in Switzer- 
 land fig. 18, p. 58 
 
 attitude toward contributions to sick funds in Germany 287 
 
 Government's contribution in Germany to fund for injured 49 
 
 Mutual social insurance in Germany, for compensating, .fig. 12, p. 49 
 
 Workers' compensation for injuries fiii-. 2, p. 12 
 
 mfist be paid at definite times G7 
 
 determined under Act of 1906 by earnings, in Great Britain 193 
 
 Workers' contribution, in Germany, important 58, 311 
 
 in Switzerland 57, 58 
 
 necessary 294 
 
 Principle of 55, ^^(^ 
 
 proportion of fio-. 17, p. 53 
 
 satisfactory 2S1. 310 317. 
 
 should not be increased in Germany 289 
 
 to mutual social insurance in Germany fig. 13, p. 49 
 
 Workers' efficiency increased by industrial relief, in Germany 101 
 
 Recognition in England of German 148 
 
 Workers' fault, accidents due to, in Germany 55 
 
 ideas of slight injuries enlarged by simulation in Germany 53 
 
 injuries extending over thirteen weeks in Germany during 1908. . 34 
 insurance, Beneficial results in Germany, on charitable institu- 
 tions of 49 
 
INDEX 481 
 
 PAGE 
 
 Workers' irisurance, change in public sentiment in Germany about 32 
 
 Rates in Germany higher than in England for 146 
 
 unites employers and reduces unfair competition 38 
 
 limbs protected by safety appliances on woodworking machines 
 in Germany, fig. 59, p. 114; fig. 60, p. 114; fig*. 61, p. 
 115 ; fig. 62, p. 115 ; fig. 63, p. 115 ; fig. 124, p. 395 ; fig. 
 
 125, p. 396; fig. 126, p. 397; fig. 127, p. 397 
 lives, preservation of, means increase of national resources in 
 
 Germany 38 
 
 objections to German accident insurance system 31 
 
 relief and pension system of the International Harvester Company 385 
 
 relief in the United States, voluntary system of . 381 
 
 Workmen benefited and protected by compensation system of Germany 320 
 contracting out schemes not obligatory upon, in Great Britain .... 243 
 contribute to compensation fund in Austria, Denmark, France, 
 
 Germany, Luxenburg, Norway and Sweden fig. 4, p. 14 
 
 Definition of, under British Act of 1906 190 
 
 Economy in giving prompt medical attention to injured 51 
 
 English employer personally liable for injuries received by 170 
 
 entitled to compensation under Act of 1906, in Great Britain 186 
 
 employers in Germany care for injured and sick 30 
 
 indemnified by employer on establishment of liability 160 
 
 injuries to, from careless use of emery wheels fig. 123, p. 394 
 
 Liability of Employer under Act of 1906 to 185 
 
 Machinery of insurance associations in Germany secure greater 
 
 safety of 176 
 
 may secure compensation after action at law, in Great Britain... 189 
 Percentage of premiums paid by employer in United States reaching 219 
 prefer Compensation Act to Employers' Liability Act in Great 
 
 Britain 223 
 
 preferred creditors in Great Britain in event of employers* in- 
 solvency 187 
 
 Relation of compensation legislation to British 251 
 
 Relation of compensation legislation to injured German 251 
 
 Small employers work to secure highest rate of compensation for 
 
 injured 78 
 
 under Act of 1906 in Great Britain 192 
 
 Workmen's accident compensation. The "Doctor Question" in 54 
 
 Workmen's Compensation Act of 1897, in Great Britain, Insurance 
 
 rates under the (table) 232, 233 
 
 Workmen's Compensation Act of 1906 in Great Britain 331 
 
 Insurance rates under (table) 232, 233 
 
 Review of 208 
 
 Statistics of Compensation and proceedings under 215 
 
 Workmen's compensation tariff rates in Great Britain, Increases in . . 
 
 (table) 236 
 
 protection in Germany through legislation great achievement 290 
 
 sense of responsibility lessened by compensation system in Germany 295 
 Wrong method of removing twine from shaft of spinning machine. . . . 
 
 fig. 128, p. 39S 
 Z 
 Zurich, Switzerland, accident prevention institution in 120 
 
-I. v^- 
 
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