REPORT UC-NRLF EMPLOYERS' LIABILITY AND WORKMEN'S COMPENSATION COMMISSION d STATE OP MICHIGAN 1911 WYNKOOP HALLENBECK CRAWFORD CO., STATE PRINTERS LANSING, MICHIGAN EXCHANGE DOCUMENTS DEPT. REPORT EMPLOYERS' LIABILITY AND WORKMEN'S COMPENSATION COMMISSION STATE OF MICHIGAN 1911 WYNKOOP HALLENBECK CRAWFORD CO., STATE PRINTERS LANSING, MICHIGAN DOCUMENTS DEPT. COMMISSIONEKS. HAL H. SMITH, Chairman Detroit CHARLES R. SLIGH, Vice Chairman Grand Rapids MICHAEL P. McCUEN Grand Rapids WILLIAM P. BELDEN Ishpeming ORA E.. REAVES Jackson RICHARD L. DRAKE, Secretary Detroit. REPOKT OF EMPLOYERS' LIABILITY AND WORKMEN'S COM- PENSATION COMMISSION OF THE STATE OF MICHIGAN. To His Excellency the Governor, and the Legislature of the State of Michigan: Your commission appointed by Act 245 of the Public Acts of 1911 to investigate and report a plan for legislative action to provide com- pensation for accidental injuries or death arising out of and in the course of employment, respectfully submits its report as follows: PART I. INTRODUCTION. The Michigan Commission to investigate and report as to employers' liability and workmen's compensation was created by Act 245 of the Public Acts of 1911. It has assumed that its creation resulted from a wide dissatisfaction with the present system of employers' liability for negligence as to employes. It has directed its investigation, as this report will indicate, to an inquiry into the facts in connection with the number of industrial accidents, the extent of the damage suffered by reason thereof, the responsibility therefor, and the financial compensa- tion which the injured receives. The result of this inquiry, as presented in this report, cannot be understood without a brief and general state- ment of the present system of employers' liability as defined by the statutes and the decisions of our courts. THE PRESENT SYSTEM OF EMPLOYERS* LIABILITY. This system known as employers' liability at common law, is based upon a showing of the employers' negligence. The law has imposed upon the employer, or master, certain duties, and holds him liable to the employe for any accident which may occur by reason of the master's failure to perform any of these duties. Failure to perform these duties is deemed negligence. It may in general be said that the employer is re- quired to furnish an ordinarily safe place in which the employe may 6 EMPLOYERS' LIABILITY AND work ; to provide ordinarily safe machinery ; to inform his workmen of the dangers of their work; to select competent servants; not to engage his servants or workmen in a different kind of work than that which they are employed to perform; and to provide reasonable inspection of his machinery and the place of work of his servant. If the employer violates any of these duties, and from such violation injury results to the workman the workman can recover in an action of law in the courts, and secure damages for such negligence, if he has estab- lished that he, on his part, has not violated his duties. The workman's duties are, briefly, that he should obey the orders of the employer, per- form his work without negligence, inform the employer of defects he may discover in his work, machinery, place of work, and as to the incompetency of his fellow workmen. In the application of these rules which govern the employer's duties, and define the duty of the workman, there have arisen three main de- fences which have been known as, first, the defence of assumed risk; second, the fellow-servant doctrine, and third, contributory negligence. These three defences have been the subject of much criticism, and the discussion that has arisen concerning them plays an important part in the agitation for a change in the system of employers liability. DOCTRINE OF ASSUMED RISK. Under the doctrine of assumed risk, an employe is held to assume and consent to the ordinary and obvious risk incident to his employ- ment, and if he is injured thereby, as a result of these risks, he cannot recover. It has been argued in this respect that the employe practically can- not refuse to work at a hazardous task, and is thus compelled to assume the risk. The Michigan courts have not applied this rule with as much rigor as have some other courts. They have held that an employe as- sumes no risk which he is incapable of appreciating, and that where there is a doubt as to the safety of the machinery, the employe can rely upon the assurance of the master. But, nevertheless, earnest criti- cism has been made of the doctrine as inapplicable to present conditions when workmen are not entirely free to select their employment. THE FELLOW-SERVANT DOCTRINE. The rule known as the fellow-servant doctrine bars a recovery in an action of negligence when the employe has been injured through the negligence of a fellow servant. This doctrine is of a comparatively modern development, and was first announced in 1837. It is closely related to the theory that the servant assumes the risks of his em- ployment. It has been accepted by all courts, sometimes on the theory that servants should co-operate for their own safety, sometimes on the theory that they jointly undertake that they are responsible to the master for each other's acts, and again on the theory that there is an implied contract to assume the risks attendant upon the employment of the other servants. WORKMEN'S COMPENSATION COMMISSION. 7 This fellow-servant rule has been criticized severely as an unjustifiable exception to the rule that the master or employer is responsible for the acts of each of his servants in the course of their employment. The chief difficulty as to this doctrine seems to be in its application rather than in the doctrine itself. The courts have radically disagreed as to what is a common employment, and as trades and employments have multiplied, an increasing difficulty has been found in the task of prop- erly classifying the workmen. It has, however, been insisted that this rule should be restricted to cases where an accident results from the act of the fellow servant who, at the time of the injury, was directly co-operating with the injured workman, in the particular work or business in hand, or where their duties brought them into habitual association so that they may exercise an influence upon each other promotive of proper caution. The Michigan courts ^ have held that the character of the work de- termines the character "of the servant, and that whenever the duty of inspection is placed upon a servant, he is a representative of the master, and so not a fellow-servant in that particular work. In short, whenever the servant exerts the power of the master in the particular work in which he is engaged, he ceases to be a fellow servant, and therefore, the servant, his fellow, who may be injured, is not denied recovery because of the first servant's negligence. Even with this modification, the rule has aroused much . opposition. CONTRIBUTORY NEGLIGENCE. As has already been stated, the workman must show before he can recover, that he," on his part, was not negligent. The Supreme Court of Michigan once said that this rule fails to produce justice. Some other states have enforced the same rule, but in the courts of the United States, it is otherwise, and the defendant must show that the plaintiff has been guilty of negligence. Our own court has modified the rule when the manner and circumstances of the accident themselves raise a presumption that it could only have occurred through the defendant's negligence (res ipsa loquitur.) The doctrine of contributory negligence is severely criticized, and it has been urged that the admiralty rule of a division of damages where there is negligence proven as to both parties should be substituted. Still others insist earnestly that the question of contributory negligence should always be left as a question of fact for the jury to determine. The practicability of such a solution is, on the other hand, questioned, since if the negligence of the plaintiff was in each instance to be left to the jury, a verdict for the defendant would undoubtedly be extreme- ly rare. The Michigan rule permits recovery even where contributory negligence is shown, if the employer's negligence is wanton or wilful. The comparative negligence rule which permits the plaintiff to recover even when guilty of some negligence is the rule in the State of Illinois and has many supporters. EMPLOYERS' LIABILITY AND RULE OF DAMAGES. Reference should here be made to the rule of damages applicable in negligence cases. In general, the amount of damages in a given case is fixed by the jury at an amount which in its opinion will fairly com- pensate the injured for the injuries sustained. The law of Michigan, however, is unique in one respect. The right of action for damages in case of death is given by two statutes, and does not exist otherwise. One of these statutes is called the Death Act, and was placed upon the statute books of the State in 1848. This statute applies where death is instantaneous. The right of action vests immediately in those who have suffered pecuniary loss by reason of the death, and permits the jury to give such damages as they "deem fair and just with reference to the pecuniary injury resulting from such death to those persons who may be entitled to such damages when recovered." The second statute is called the Survival Act. It became a part of the law in 1838, but did not cover negligent injuries until 1885. It applies where death is not instantaneous. It given a right of action to representatives of the decedent, irrespective of whether he left depend- ents or not. If any interval intervenes between the accident and the death of the injured, the right of action vests then in the injured and upon his death descends to his representatives for the benefit of his estate, and a recovery may be had without reference to the dependence of his family or heirs for an amount which may equal what the deceased would probably have earned during the remainder of his lifetime, with- out any deduction for what it would have cost him to live, or what he might have spent in the course of his lifetime. THE INVESTIGATION. Having in mind the legal rules by which the present system of em- ployers' liability is governed, the Commission undertook an investiga- tion to determine whether or not there occurred in the course of in- dustrial operations in the State of Michigan accidents to a number that would demand legislation ; whether or not the compensation received by the injured was adequate; what effect the adjustment of this compensa- tion under the present system had upon the employer and the public and, in general, what causes brought about the accidents. I. NUMBER OF ACCIDENTS. The first inquiry to which the Commission directed its efforts was as to whether or not there occurred during; the course of industry in the State of Michigan industrial accidents to a number that would justify or demand any legislation of the character proposed. That the number of accidents occurring annually in Michigan to workmen engaged in employments in the industries of the State is suffi- ciently large to demand remedial legislation is shown by the fact that WORKMEN'S COMPENSATION COMMISSION. 9 during the year 1909 employers reported a total of 1,026 accidents to the Labor Department of the State. During the year 1910, employers reported a total of 1,728 accidents. These reports do not include the accidents to railroad employees. In 1910 the number of these employees who had suffered fatal and non- fatal injuries were reported to the Railroad Commission as 990. The Commission, however, conducted an independent investigation of this question and secured reports from 466 employers exclusive of the mines and the railroads as to accidents covering the period from Janu- ary, 1910, to January, 1911. These employers employed 99,134 work- men and reported a total of 7,116 accidents. Table I will give in detail the results of this investigation., Tliis table displays the fact that 7,116 injured (fatal and non-fatal) workmen received an average compensation of $10.91. Adding to the compensation paid, the cost of medical, hospital and legal services inci- dent to accidents, we find a total cost per injured man of $15.30. To the number of fatal injuries reported in the State at large in this table should be added 73 fatal injuries which occurred in the mines and 91 fatal injuries which occurred in the railroads during the same period of time, making a total of 199 fatal injuries so reported for the State at large during the calendar year of 1911. It is estimated that there are employed in the industries of the State, exclusive of farms, 250,000 workmen. It can therefore, be fairly said, adopting the proportions shown in the foregoing table and considering the risk of the industries not reporting that in the various Michigan industries exclusive of farms, in a single year approximately 220 work- men received fatal injuries, and approximately 13,000 received injuries less than fatal. The Commission determined, therefore, that the industrial accidents of Michigan were sufficient in number to justify remedial legislation. 10 EMPLOYERS' LIABILITY AND TABLE I. EMPLOYERS' GENERAL REPORTS FROM INDUSTRIES 1 a Non-fatal ( Compensation. 'I 3 -COiC^ TjHiC'CCOlN COiCOI^GO ^ ^ O (N CO T GO^OGOGO C^li-HiCOSlC OOCOCOCD OCOi irH (N H ^ T-T WrH O CO *C O C^ *C O O5 O-^OSCSO CSTfiMOCO 1C O O5 O 00 COCOiCiCO 1 c 6-2 1-Hi-HrHrH i-H ICiH C^ 1 _^ 2* (N a> S 1C - COOO5 to 1 i| o.g co GO' V-; oo" E H * 000 H 0, s pj ^0000 00000 0000^ 00^^^ O (N T 1 6 * 1 * >C OOOCO OOCOO OOO.O COOOO 1 ; 8 co" 3 H C C iC iC S , GOOOOO OOCCO OOOOt^ CCOOO IO II ** 2 O> 8 8 8S 88 1C g o or-oo^c CO-HCCO o-*oco coooo (M ;g "S MO CN 2^ 0^ C i S cc ' a w ^ 1 1 ^d ooci icooico coooo frioooo ^T}ooo ooooo oooooo O^HOOO ooooo oooooo CO g^-Si COSISJOCO 000$. 2^888^0 CN - *IK 8 .- r ,0.^. ,.o.e.o. 5 s* 1 -91 ON ON^OOO O -lO^^H iCOOOfN .QQi^iOO C^ CO"^t 1 '^t ( C^OOOcO 8 1 " > r^C^CDO iO 'COQOCO iCOOOOi # cd 1 "* d to .S 1 :8888 8 J888 J88888 8 V .2 1 bo lOOOO O -iOiCC -OOOO>O Oi(MOCO lOO^^O O * iH i-l i-H (N O O) 1 88 :88 888 : : 8 N O IOOO^H i-H TH (N O O W i-l rH rH O i-l CO G "o C=(M(MOOO C. 01 -H it- iCt-(NCOOOCO 3 O H ' E 3 | O *j 1 i! d ! .' .' o> ' ;;.''; & ; ; ; ; ; -^ : : :1 : :::': | : : : : n o -S ' 'E * D.'G : : | : : :2 : 3 : : : : g ^ *-^ - bj, : S | i if ' f | i . : | II || | i^sl | g : ; ;|| jj I! $a|l JllgS Slljsa C^_,Co' ' O r- C2 , i c3C^ o EH .a 2 HS r l*S*S5 f^H 8 SJd,?*- * g WORKMEN'S COMPENSATION COMMISSION. 19 i ^ p ftO-rt l Si IS o^ 88 :8 : iCO -O S2S22 g "*! C^^OOO (N (NCO . .*^ O> 00(N 9 d > CJ oj U i-i ^ e'S :g ^" : S~ H IHAOO OOr-( OOO--H c^ O tf -8j OM 3 Sutpuad rHOOO OOOO -H S s^ins jo -ON 1 o5 be i! i !!! i rH S 3 S :| : *^ s . : 12 1 w 8 ^ : : ^^^ : S ^ H 1 d 1 1 i! !!! i o CO i 2 PR g be O ^^HCO S "^ 02 p-H ^H ' 7 ' TH'C^C^ CO (H H fl ^ ; "/.- 2 O 00 . d .0 . 1 || :| : S || g||^ 3 1 Ifll fill e c3 20 EMPLOYERS' LIABILITY AND TABLE XXIV. CASES IN CIRCUIT Nature of injury. Occupation. Amount recovered. Attorney's fees. Arm cut and crushed by dovetailing Paper box maker *$3,000 00 $500 00 machine necessitating amputation. Killed by elevator starting before 2,500 00 33cr deceased could get out. Killed by falling elevator shaft Head pierced with piece of steel driver. J Thrown from wagon' improper Manufacturer of cement plaster.. Manufacturer of school and opera seats. Driver for retailer 12,125 00 1,481 30 No cause 975 00 50% 125 00 harness. Explosion of gasoline in can marked 'Oil." Caused by breaking decayed step on G. R. I. Ry Manufacturer of caskets and un- of action. 4,000 00 None.. . 50% contingent. stairway. Ladder fell from tree breaking arm dertakers' supplies. Farm hamd. 250 00 50 00 Laundry worker j|l 350 00 500 00 machine. Burned by pouring bensol into Furniture worker 300 00 111 43 93 sewer into which steam was es- caping. Fell from rear bumper when cars collided while changing trolley. Leg crushed by starting turntable Street railway p. M. Ry 25% contingent . 50% contingent without notice. * Allowed by jury, appealed to supreme court. tPaid in court during new trial granted by supreme court. JDied three months after accident. TABLE XXV. CASES IN CIRCUIT COURT Nature of injury. Occupation. Time lost from work. Loss in wages. Timber fell on side breaking three ribs Manufacturer of engines. . . 9 months . . $572 40 Thumb on left hand cut off Stationery manufacturer 2 months 84 00 Lost first three fingers of left hand Skull fractured Furniture worker Manufacturing of firepots . 5 months. . . 1 1 months 300 00 Hands mangled in machinery Manufacturer wooden ware. 1 month.. . . 22 50 Total 28 months $978 90 WORKMEN'S COMPENSATION COMMISSION. 21 COURT FOR KENT COUNTY. 1910, te ~*u 5 s . |ll Wages at time of accident. Time lost from work. Loss in wages. Total cost, fees, medicine, etc. Wages after recovery. Economic conditions after recovery. Was earning power per- manently im- paired? S 9 ?-^ $15 00 per week Lost position.. Yes. 1 =n 50 100 63 Oft $3.00 per day . . . $2.25 per day . . . $10.00 per week. 6 months. 4 months. 3 months. 6 weeks $432 00 216 00 120 00 36 00 $607 75 2,316 00 183 00 116 00 $3.00 per day . $2.00 per day . $15 per week.. Lost position.. Lost position.. Lost position.. Lost position.. No. Yes. No. No. 9 50 $1 50 per day . Lost position.. Yes. 10 300 1 ^O $10.75 per week. $12.00 per week. 2 weeks . . 3 months. 21 50 144 00 2 9 00 181 50 444 00 370 00 10 per week.. . $25 per month Lost position.. Lost position.. Lost position.. No. Yes. Yes. Suit pending. llSettled out of court. llOd/UCVJ, i/U* \JL IAJU1I/. ^Additional cash expense of $6.07 in fees. MUSKEGON COUNTY. PERIOD. 1910. Wages at time of accident. Wages after accident. Medical expenses. Date of accident. Suit began. Amount recovered. Earning power perman- ently im- paired. $2.65 per day.. . $1 75 per day.. . $2.00 per day . $200 00 100 00 Aug. 22, 1910 April 21, 1910 Dec. 29, 1910 Oct. 14, 1910 *$2,10000 1,500 00 Yes. Yes. $2.50 per day.. . $1.50 per day. 100 00 150 00 Mar. 24, 1910 Aug 10 1910 Nov. 28, 1910 Sept 19 1910 None Yes. $0.75 per day.. . $0.65 per day. 50 00 June 27, 1910 Aug. 17, 1910 225 00 Yes. Av $1 91 Av $1 38 $600 00 $3,825 00 *Attorney fees, $700.00. 22 EMPLOYERS' LIABILITY AND Recove circuit || | c! s doc -ooio o *^ '^2 "^ "^ O *^ O O Tfi O ^ " l " : 8 : e> - o o o O *O O O CO 55 Q ^H rH 00 00 00 s 1 1 WORKMEN'S COMPENSATION COMMISSION. 23 The cases in Table XXIV consumed a total of 28 days of the court's time, at a cost to the State and county of $2,774.31. The court cost to the parties at suit was f 927. 60. While there were 32 cases in which suit was commenced, only 12 of them proceeded to trial, the rest being discontinued either because of settlement or some other cause result- ing in failure to prosecute. The average attorney fee for the above cases was $787.33; added to this cost to the worker (exclusive of his permanent loss of earning power) was an average medical expenditure of f 111.33; and a loss of wages averaging $180.60, thus showing that while the average amount recovered by the injured in court amounted to $2,542.78, there was left for the injured but $1,338.55, when final settlement was made, and, it will be noted, three of these accidents re- sulted in death. It appears that all the injuries in Table XXV occurred in manufactur- ing plants, that is, where there was machinery. In the first case the time intervening between the accident and the commencement of suit was 4 months, 1 week; the second, 5 months, 3 weeks; the third, 8 months, 4 days; the fourth, 5 weeks; the fifth, 7 weeks. This shows an average delay of 3 months and 3 weeks before suit was even begun. The delay until the conclusion of the litigation was, of course, much longer. Dur- ing the period of time lost from work the injured workmen were depend- ent upon others for bread, clothing and shelter in addition to the usual wants was the expense caused by the injury. The average daily wage from this table is $1.91, multiplying this by the total reported time lost, we find the total loss of wages to be $1,393.48 in these five cases; an average loss per injured man $278.70 wages. The total medical expense was $600.00; the average expense per man is $120. From these figures it can be seen that the average combined loss of wages and medical expense per injured man was $315.78. The average recovery was $765.00. Taking from this average recovery the average expense we have a, balance of $449.22 which repre- sents the compensation received by the injured man for his injury. From this amount must be taken the expenses of the trial and the law- yer's fees. Reckoning court and attorney costs at 40% we have left to the injured workman an average of $173.15 as compensation. Since all the cases reporting a recovery in this table were those in which there was permanent injury, this $173.15 is the average of which the injured workman received for a permanent reduction of his earning power. 24 EMPLOYERS' LIABILITY AND IV. EFFECT OF PRESENT SYSTEM ON EMPLOYER. The Commission having become satisfied that industrial accidents do occur in Michigan to an extent justifying remedial legislation, and that the compensation ultimately received as a whole, by those injured, and in the vast majority of individual cases, was inadequate, turned its attention to an inquiry as to the effect of the present system upon the employer. A general inquiry developed the fact that approximately 65% of the larger employers of the State -endeavored to protect them- selves against liability for negligent injuries by indemnity insurance. The total amount of premiums paid yearly by Michigan employers for all forms of indemnity insurance approximates $725,082.00. Of this amount a proportion is applicable to some other forms of insurance, but the exact proportion was not reported! to the commission. The in- vestigation by the New York Commission on Workmen's Compensation developed the fact that throughout the country as a whole not to exceed approximately 36% of the amount of premiums paid for liability in- surance were paid out in losses by the indemnity companies. All of the balance, except a not unreasonable percentage which inures to the com- panies' profit, was absorbed in the securing of business and the expenses of litigation. If the same ratio were made applicable to Michigan an economic loss has been sustained by the employer and employe that yearly approximates $435,000 if we could approximate the total of the prem- iums above set forth to industrial indemnity. The indemnity companies perform a useful function, but their interest rests solely in the economi- cal adjustment of loss. The employers to some extent treat the insur- ance not as indemnity but as if it were a transfer! of all liability, and in- stead of adjusting the loss themselves and seeking indemnity from the company they co-operate with the indemnity company so that the latter may at once assume the full burden of disposing of the litigation. Not all of the loss which arises under the present system of indemnity in- surance could or should be saved, since the insurance of the risk is a necessity, if the workman is to be adequately and completely protected. But the litigation which inevitably arises and is undoubtedly encouraged by the present form of indemnifying against this liability could be pre- vented with a very considerable saving for both the employer and the workman. The defense of litigated cases by the employer, either without the assistance of the indemnity company or in co-operation with the com- pam^, is a great expense to the employer, not only by reason of the actual expenditures for costs and attorneys, but as well because of the dissatisfaction aroused with other employes, the loss of time and loss of service. Altogether it can with justice be said, that the effect upon the employer of the present system is as serious except for the physical suffering caused by the injury, as the effect upon the workman and his family. By this we mean that the pecuniary- loss is probably as great upon the employer as upon the employe. WORKMEN'S COMPENSATION COMMISSION. 25 V. EFFECT OF PRESENT SYSTEM ON PUBLIC. The effect upon the public of the present method of handling industrial accidents was the subject of consideration. The data already set forth in the tables as to litigation demonstrated the heavy expense of the actions brought in the courts. The Commis- sion was continually impressed with the economic waste to the public because of the differences constantly arising between the employer and the employe, the animosity created and encouraged by the common law system. That the public has, however, a direct financial interest in the prob- lem of caring for the injured workmen cannot be doubted. To demonstrate the truth of this statement an investigation w^as at- tempted of the records of the poor commission of Detroit and the coro- ner's office of Wayne county. The information there secured indicates clearly that the families of injured workmen are a substantial charge upon the public funds. The coroner's office shows a record of 91 fatal accidents in 1910 arising from all causes but an investigation was completed in only twelve industrial accidents, which were selected at random. The inquiry as to the records of the poor commission developed statis- tics as to 14 fatal accidents, 13 partial permanent disabilities and 20 temporary disabilities. The examination of the data above referred to and the evidence of the extraordinary waste in litigation confirmed the Commission in its opinion that the expense of the present system to the State is so great that it could with justice bear the expense of the administration of any remedial statute. The data secured is in detail as follows: 26 EMPLOYERS' LIABILITY AND TABLE XXVII. RECORDS TAKEN FROM Earnings per week. Paid fam 1 Occupation. Injury. Nationality. Children. 1 8 .j 1 o $ d I No. Earn- ings. 1 Furniture Fell down elevator German .... $2 10 4 $2 10 $500 polisher. shaft. 2 Piano rubber.. Burned to death in Hollander.. . .1 50 3 $2 00 3 50 $80 factory. 3 Teamster Wagon struck by Canadian. . . 5 00 5 00 1,000 train. 4 Oiler, rolling Burned by collapse Canadian. . . 8 00 2 8 00 1,000 5 mill. Sewer digger. . of machinery. Fell into sewer .... German .... 2 500 6 Teamster Struck by St. car. . Polish 1 50 6 1 50 500 7 Painter Scalded to death. . . American.. . 1,000 8 Teamster Struck by St. car. . American.. . 3 00 1 3 00 9 Car tester and Foot crushed; blood German .... 2 50 6 2 50 0. 10 oiler. Engineer poisoning. Crushed between Canadian . . 4 50 - 4 50 1,000 elevator and floor. 11 Millhand Killed when drawn Austrian.. . . 3 121 into belt. 12 Teamster Knocked from American 6 780 wagon. WORKMEN'S COMPENSATION COMMISSION. THE CORONER'S OFFICE PERIOD, 1910. 27 Uy by Settlemen t. Employer. In court. Out of court. Attorney's fees. Weekly wages time of accident. Condition of family time of report. Funeral $12 00 Former employer gives widow $10 per 9 00 month for 3 years. Owns home; $250 incumb ranee. Mother earns money washing clothes ; funeral. $2,000 $666 67 19 00 one son works irregularly. Owns home, unencumbered; income $100 00 Hospital 600 100 00 12 00 13 50 from roomers. Owns home; earns money boarding and rooming. Home broken up; widow living with 25 00 Suit pending . 10 50 married daughter. Receiving aid from poor commission; o 3,800 1,900 00 20 00 destitute. In comfortable circumstances; with o 350 115 00 12 00 sister. Home broken up; widow out at ser- o vice; son contributes little. Widow no means of support except o Suit pending. . . . washing clothes. Widow running small store; debts used up insurance money. Receiving aid from poor commission; 25 00 live in two rooms. Widow now at housework; sickly and destitute; oldest boy in hospital. 28 EMPLOYERS' LIABILITY AND TABLE XXVIII. PARTIALLY DISABLED FOR LIFE, TAKEN Case number. Nature of injury. Nationality. Earnings per week. Wife. Children. No. Earnings. 15 16 17 18 19 20 21 22 23 24 25 26 27 Fractured vertebrae and paralysis of one leg .... Internal injuries* timber fell on him American German Polish Austrian Russ-Polish Polish.. $3 00 5 00 2 3 4 3 3 4 1 3 *2 2 7 3 $3 00 1 75 Leg broken badly set* walks with cane. Injured in foundry; crippled for life Seriously scalded crippled for life Eyes injured while working in foundry Lost two fingers of right hand Austrian Leg broken; walks with crutch Fell off building* walks with crutches Polish Canadian Crippled while at work on R. R Italian American Austrian Fell through floor; foot amputated Pile driver fell on leg; amputated above knee . . . Leg cut off by machinery Austrian * Aided by son who has six children. TABLE XXIX. TEMPORARILY TOTALLY DISABLED s 1 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Nature of injury. Nationality. Earnings per week. Wife. Children. No. Earnings. Leg broken while working on car Fell from freight car; injured head and arm Blood poisoned hand while at work in packing plant Polish $6 00 5 00 7 6 4 6 5 *4 t4 3 3 2 5 2 5 2 2 5 3 2 $12 50 3 50 4 00 3 00 German American Leg broken by earth falling on him Polish American Leg broken in collision; motorman Gasoline poisoning while working in auto factory Blood poisoning in leg Canadian German Leg broken bv caving in of cellar American Canadian Fell from scaffold Leg broken; auto plant Belgian Irish Polish Blood poisonong in hand from brass splinter .... Leg injured by iron window falling on him Injured foot while at work in car shops Fell from building in course of constrict uon Injured while unloading freight Austrian American American Motor fell on shoulder Fell back into wagon while driving same American Ran needle into hand Injured while at work on railroad bridge Injured while tearing down old building Syrian Canadian *Other aid from church. **Employer paid hospital bill. WORKMEN'S COMPENSATION COMMISSION. FROM RECORDS OF POOR COMMISSION PERIOD. 1910. 29 13 Total earnings. o Compensation. Wages time of accident. Period incapacitated. J? Date of accident. I O q t 1 o o Suit pending $80.00 per mo.. . Still disabled 39 July, '09 $3 00 $1.57 per day . . . 3 months 44 Oct., '10 3 00 $1.50 per day. . . Intermittent .... 41 1906 Offered $200; refused.. . $1.75 per day. . . $63.00 per mo.. . 4 years Still disabled.... 39 36 1907 1910 o o No recoverv Intermittent . 35 1908 o o $1 75 per day . . . Intermittent .... 22 July, '10 o $50 00 Wages 6 mos doc'r bill $1 75 per day 1 year 33 1909 5 00 o Suit pending $3.50 per day . . . 1 year 39 1909 $1.50 per day. . . Still disabled.... 60 1905 o o $125 00 Intermittent . 47 Sept '07 f9 75 Suit discontinued Now working 42 1902 t4 50 $200 00 Sells lead pencils 47 1900 tHusband at work. TAKEN FROM RECORDS OF POOR COMMISSION. Total earnings. Insurance. Com- pensation. Wages time of accident. 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O 2 >< d _o M 7^ X! ^ M M M ^G 'fcJtJtjM M '^ _J M c^ a 1) cy CD I O O O 4) 73 ** -MMMM MMCS g fl ^oooo o ox3 ft (3 o rJ o h3 (3 ^ CQ O S t-4t !t-5 i 5 i] PQS M W S < H 8SBO JO -OJs[ rH (M CO ^ co ^ 000,0" -c,co^ WORKMEN'S COMPENSATION COMMISSION. 31 GENERAL CONCLUSIONS. The Commission concluded from the investigation of which the fore- going is a synopsis, not only that industrial accidents in Michigan oc- curred to a number to justify remedial legislation, but that on the whole the compensation received by the injured person was not ade- quate, and that by reason of the present legal rules large sums of money were expended by employers as a protection against damages arising from industrial accidents, while but a small percentage of the sums so expended actually resulted in any benefit to the injured. It concluded that the litigation which is now uniformly the result of an industrial accident is the cause of great expense, not only to the injured but to the employer and that this expense is an actual and economic loss and waste. It was apparent, therefore, that if a change in the present system could be effected by which the burden of industrial accidents could be more equitably distributed, the injured person receive more compensa- tion, the employer be protected against the unreasonable risks of ex- cessive verdicts, and the community at large be saved the expense caused to it by present litigation between the parties and society in general could be relieved of the animosity engendered by the strife arising under the present conditions if these results could be accom- plished by a change in the present legal system, such a change was most earnestlv to be desired. REMEDIES, MODIFICATION OF PRESENT LAW. Various remedies were proposed to the Commission, and considered by it in its discussions. One proposal which was argued with consider- able insistence, and indorsed by high authority, was that the defences of the employer be modified or abolished. The Federal Government, by the Employers' Liability Act of 1908, qualified the assumption of risk defense as to common carriers "when the violation by a common carrier of any statute enacted for the safety of employes contributed to the injury of the employe." In some states the same rule has been modi- fied where the accident occurs through a defect of machinery, of which the victim had given notice. (See Massachusetts Revised Laws, 1902, par. 71; New York, 1902, Sec. 600, par. 1. Ohio Annotated Statutes, par. 3365. Connecticut General Statutes, 1902, par. 4702; Pennsylvania statutes 1907, chapter 329; Alabama Code 1901, chapter 89, 1910 and others.) The State of Ohio has in a general way already modified the com- mon law by providing that all questions of contributory negligence were to be left to the jury. This was likewise the requirement of the Federal Employers' Liability Act of 1906. Michigan in 1909, by Act 104 of its Public Acts, provided that the contributory negligence of an employe of a railroad company should not bar his recovery, if it were of a less degree than the negligence of the railroad company, its officers or em- ployes, and that no employe should be held to have been guilty of 32 EMPLOYERS' LIABILITY AND contributory negligence where the violation of a statute for the safety of employes of railroad companies contributed to the injury, and that such employe should not be held to have assumed the risk of his employ- ment where a violation by the common carrier of any statute enacted for the safety of employes contributed to the injury. This statute is common in many states, and in Oklahoma and Missouri it has been ex- tended to mines. In Maine in 1909, the fellow-servant rule was abolished for all em- ployes except domestic, farm laborers and lumbermen. Other modi- fications of one or another of the employers' defences have been made elsewhere. This remedy seemed, however, in the opinion of the Commission to be entirely inadequate and ineffective. It will be remembered that a very considerable percentage of the accidents are usually due to causes which cannot be traced in any respect whatever to the negligence of the employer. If we may adopt the results of the investigation of Miss Eastman in the Pittsburg district, (page 104, Work, Accidents and the Law), it is apparent that 54.12% are not due in any way to the negli- gence of the employer, so that a modification of the defences would not materially assist the workmen to secure compensation. Even if these defences should be completely abolished and not simply modi- fied, as above stated, there would still be left more than fifty per cent of the accidents for which no compensation whatever could be secured, and this notwithstanding the large proportion of these accidents would be chargeable to the risks that surround modern industry. Not only this, but the modification of these defences would tend to increase liti- gation in the courts by enlarging the workman's ability to maintain an action for damages, and with this litigation would still be present the vicious gamble of the verdict, which is, after all, the source of the greatest waste. It would seem, therefore, that the only rational solu- tion of the difficulty would be the adoption of some plan that would effectually put an end to the continual increase of litigation over in- dustrial accidents. REMEDIES, WORKMEN'S COMPENSATION. The second proposal, that of Workmen's Compensation, contemplates a complete change in the theory upon which damages for industrial ac- cidents rests. As we have seen, the present system is based upon a showing of the employer's negligence. Workmen's Compensation rests upon the theory that the industry should bear the hazards of all acci- dents. This theory is known as workmen's compensation to distinguish it from employers' liability, the term applied to the present legal sys- tem. It contemplates the payment of a fixed sum of money for every injury, thus endeavoring to abolish litigation to a degree, and to give compensation to every accident irrespective of fault, unless the fault be wilful on the part of the employe. No attempt will be made here to examine the laws of this character which have been enacted in every country in Europe except Switzerland and have likewise become a part of the law of many of the British provinces in the various parts of the world. A complete resume of these various laws will be found in United WORKMEN'S COMPENSATION COMMISSION. 33 States Bulletin of the Bureau of Labor No. 90, issued in September, 1910. The plan that has been in operation for a quarter of a century in Germany seems to be indorsed by the best students of the problem the world over. No examination of this branch of the subject would be complete with- out a careful study of the volume on Accident Prevention and Relief by Messrs. Schwedtman and Emery, whose commentary on the English and German law is of particular value. In the United States the compensation principle is rapidly receiving a favorable consideration. The states of Massachusetts, California, Wisconsin, Washington, Ohio, New York, New Jersey, Kansas, New Hampshire and Oregon have each enacted laws framed in general upon the basis of foreign acts. Acts of minor importance but of the same general character exist in Maryland and Montana. Numerous states have appointed commissions to investigate the subject, and united action has been urged by an organized body of these commissioners. The Federal Government is likewise investigating the subject through its own commission, intending to be prepared to give this protection to employes working in interstate commerce and within the jurisdiction of the Federal Government. The cardinal principles of a compensation law should be: (1) Reasonable compensation at minimum cost for all accidents except the result of wilful fault. (2) Certainty of amount. (3) Certainty of payment. (4) Payment without litigation. (5) Prevention of accidents. Certainty in the amount of the compensation is of the greatest im- portance because any uncertainty whatever will multiply litigation. A defect of the British insurance act much criticized in Great Britian is that it does not in the end reduce litigation, but rather increases it because of the uncertainty of the amounts that are to be received under its schedules by the workman. Certainty of payment is likewise of the first importance. It was discovered in the investigation of the commission that many employes fail entirely of compensation by reason of the insolvency or lack of responsibility on the part of the employer. We have already made clear from the results of the investigation of the commission that the waste on account of litigation in Michigan is not less than the waste because of this factor as reported by the com- missions of the other states. The fourth cardinal principle of a com- pensation act must be the abolition of litigation, insofar as it is possi- ble under constitutional requirements. The filial object of the law should be not to mulct employers in dam- ages, but to educate both them and employes to the continual and in- telligent use of accident-prevention devices, and to obedience to the fac- tory laws designed to prevent accidents. 5 34 EMPLOYERS' LIABILITY AND SUPPLEMENTAL CONCLUSIONS. First. The Commission desires to make additional recommendations which, while not technically in the scope of their authority, are in their opinion of nearly as great importance as the Compensation Act herein proposed. The first of these relates to the prevention of accidents. The Commission presents no affirmative plan in this respect but empathically urges the attention of the Legislature to the necessity of re-inforcing the Labor Department so that it can intelligently take up the consideration of accident prevention. In our opinion, additional appropriation for ex- perimental and laboratory work in this regard should be made. Experts should begin the study, under the authority of the State, of prevention devices, and Labor inspectors should be thoroughly schooled in all me- chanical appliances that will assist to this end. In the opinion of the Commission this work can and should be made of the first importance in the Department of Labor, and its benefits, if the work is intelligently undertaken, will readily repay the State for any expenditures it might make. Second. These suggested amendments to the Labor Laws of Michigan will have no effect unless they are administered by a trained and in- telligent corps of officials in the office of the Commission of Labor of the State. The Commission could not but observe that this Department of the State Government was subject, perhaps more than any other, to sudden changes in the personnel with changes of administration. This is one of the most serious defects in the law. Provision should be made that trained departmental officials should be encouraged to remain in the Department and not be subject to sudden changes in departmental heads. A system of Civil Service or a Merit system should be installed, and the careful training of labor inspectors at once taken up. Their appointment should be removed as far as possible from politics, and an effort be made to gather around this department of the State, effi- cient, trained and competent public service men who could impartially administer the law. The Commission having considered the foregoing, prepared an Act in accord with their opinions and recommendations and submit it here- with. It is prefaced with an additional statement as to its general pro- visions, giving in detail the conclusions of the Commission on its im- portant features. VI. THE PROPOSED LAW. The Commission has prepared and submits herewith a draft of a pro- posed law embodying its recommendations on this subject. It is compulsory as respects the State, and counties, cities, incor- porated villages, townships and school districts, and all employes of the State and of such municipalities, but this does not include employes of contractors engaged in performing work for the State or any such municipality. It is optional as to all private employers (including public service corporations) and their employes except that it contains a qualifying section governing employers and workmen engaged in interstate com- merce. WORKMEN'S COMPENSATION COMMISSION. 35 Any such employer may elect to become subject to its provisions, and upon "doing so in the manner provided, shall post and publish notice to his employes that he has done so. Any employe of such employer may within thirty days give written notice to his employer that he elects not to be bound" by the provisions of the law, but if the employe does not serve this notice and remains in the service of his employer for thirty days, he is presumed to have agreed to be bound. The first section of the act practically destroys the three important common law defences of the employer, namely, contributory negligence, unless such negligence was wilful, the fellow-servant doctrine, and that the employe assumed the risk. This section does not, however, apply to household domestic servants or farm laborers, nor to the employes of employers who have elected to become bound by the provisions of this act. The effect of this provi- sion will doubtless be to cause employers (other than those of house- hold domestic servants and farm laborers) to seek relief under the provisions of this act from the burdensome litigation which would follow the modification of their defences. On the other hand, the provision that this section shall not apply to employes of any employer who has elected to become subject to the provisions of this act, will leave all such common law defences in full force and effect in case any such em- ploye should bring suit against his employer to recover damages at com- mon law, and will doubtless cause employes generally to accept this act and thereby avoid the delay, expense and unfortunate results fre- quently incident to the adjustment of such claims in the courts. The courts of last resort of Massachusetts and Wisconsin have re- cently approved similar modification of the common law defences con- tained in the Workmen's Compensation Laws enacted in those states, and it is believed that the provisions here recommended are entirely within the principle of these decisions. The schedule of compensation adopted is substantially similar to that of Massachusetts and New Jersey, and the maximum of Three Thousand Dollars in case of death, or Four Thousand Dollars in case of perma- nent total disability, is that most generally adopted by states which have enacted laws of this kind, and by commissions which have made reports with reference thereto. We have, however, given particular thought and attention to the question of securing the payment of these benefits to the persons entitled thereto, and to protect them so far as possible against loss through the insolvency of employers. In seeking the best method of administering these funds, we have considered the experience of other states and countries. Every law which has thus far been adopted has been subjected to severe criticism as being inadequate and insufficient. We doubt if any single plan has yet been devised which will prove adequate to meet the needs of em- ployers and employes in a State which has such widely diversified in- dustries as Michigan. There are some large employers of labor whose solvency and financial ability is undoubted, and who are quite as able to carry their own risks growing out of the liabilities imposed by this act, as any insurance company would be. Some of these employers have already adopted voluntary plans of compensation, and are operat- ing under them with considerable success. We see no reason why such employers should not, subject to the approval of the Industrial Accident 36 EMPLOYERS' LIABILITY AND Board, carry their own risks and make the payments required by this act directly to their employes. Other employers, however, have not such financial strength, and might be overwhelmed by the liabilities accruing from some extraordinary accident, so that at the time when such protection was most seriously needed, the employer w r ould be unable to pay the compensation accruing under the law. The Commission has therefore sought to meet this situation by draft- ing a law of such wide scope, and with such great elasticity in its pro- visions, as will surely result in providing some adequate method for every employer for making these payments in a convenient and practic- able way. The proposed act gives to every employer the option, subject to the approval of the Industrial Accident Board, to: 1. Carry his own risks if he can satisfy the Board of his financial ability to do so; or 2. To insure in any employers' liability insurance company authorized to take risks in Michigan; or 3. To insure in an employers' mutual association for the or- ganization of which provision is made in this law; or 4. To request the Commssioner of Insurance 1<> assume the ad- ministration of the collection and disbursement of such funds. The purpose of providing for the organization of Employers' Mutual Insurance Associations is to permit any number of employers, not less than five, engaged in the same general business or industry, or in occu- pations where the risks and hazards are similar, having on their pay- rolls not less than ten thousand employes, to associate themselves to- gether in the organization of a company for the purpose of mutually in- suring the members of such company against the risks imposed by this law, if they think that they will be able to do so more cheaply than the liability insurance companies which insure such risks at a profit. As there is no adequate law on the statute books of Michigan permitting the organization of such companies at the present time, and as they constitute merely a means of carrying into effect the provisions of this law, and must necessarily at all times be subject to the control of the Industrial Accident Board and the Commissioner of Insurance, it has been thought desirable to make provision in this act for the organiza- tion of such companies. Roughly speaking, the idea of permitting em- ployers engaged in the same general line of industry to group themselves together in associations for the purpose of insuring these risks, has been taken from the German system. In Part VI of the law r , it is provided that when five or more employ- ers, having on their pay-rolls not less than ten thousand employes, shall request the Commissioner of Insurance in writing to assume the ad- ministration of the collection and disbursement of these funds, he shall then assume charge of the levying and collection of premiums and the payment of benefits accruing under this act. The Commissioner of Insurance is given practically the same powers in respect to all such matters as the board of directors of employers' mutual associations here- inbefore mentioned. It is made the duty of the Commissioner of In- surance to levy and collect sufficient premiums and assessments to meet WORKMEN'S COMPENSATION COMMISSION. 37 the benefits accruing to employes of employers within his jurisdiction, but it is expressly provided that the State shall not assume responsibil- ity for the payment of any amount beyond the funds so collected. "it will thus appear that the State is not engaging in the insurance business in the sense that it is assuming any liability for claims which may be presented, and the plan thus proposed differs in many respects from the various schemes of State insurance which have been adopted in Ohio, Washington, and in some European countries. We have been led to adopt the general plan of thus presenting to em- ployers these four options, because we believe that each has merit, and that as yet experience has not sufficiently demonstrated that any one or more of these methods is entitled to exclusive consideration. Further- more, in the public hearings which we have conducted, we have found employers favoring each of these four methods. We have been interested to hear representatives of a liability insur- ance company of high standing, assert at such hearings that liability com- panies operating on a profit making basis can, because of their greater experience and the advantage of their present organization, insure against such risks at a lower rate than any such proposed association of employers operating at cost as is proposed in this act. It has also been asserted at these hearings that these funds can be collected and disbursed more efficiently through the instrumentalities of the State than in any other manner. In view of this situation, the Commission has thought it advis- able to permit, subject to the approval of the Industrial Accident Board, and the restrictions set forth in the proposed law, the use of any one of these four methods, with a view of enabling the State to determine as the result of actual experience which of these methods is in fact best adapted to the needs of employers and employes in this State. We are led more easily to this conclusion by the fact that the adoption of one of these methods by certain employers will not conflict in any way with the adoption of any other of these methods by other employers. If it develops that any particular one of these methods is unsuited to the needs of the State, then the law can readily be amended in that respect, as these various plans are carefully separated from eachi other> so that, for example, either Part V providing for the organization of Employers' Insurance Associations, or Part VI, providing for the ad- ministration of these funds by the Commissioner of Insurance, may be repealed or may even be held void or unconstitutional without in any way impairing the remainder of this act. Under this broad scheme of administering payments, the injured work- man will in all cases, except where his employer has undoubted finan- cial strength, secure in addition to the obligation of the employer, that of the insurance company carrying such risk, or of the funds levied and collected by the Commissioner of Insurance, as the case may be. We have made no provision for contribution by employes to the funds necessary to pay the compensation accruing under this act. While it has been said with much force that such contribution, however small, by employes, will tend to give them a feeling of added responsibility, and that as this law covers accidents arising from their carelessness, as well as from industrial hazards, they ought morally to share the burden, yet, after full consideration of this subject, we have reached 38 EMPLOYERS' LIABILITY AND the conclusion that it is not wise to recommend that they be required to do so. In reaching this conclusion we have had in mind that em- ployers may, to some extent, add the amount of such payments to the cost of production, which, of course, could not be done by employes ex- cept by demanding an increase of wages to that amount Finally, we think that the physical injury and suffering of the employe is quite sufficient to constitute his proportion of this industrial burden. In creating an Industrial Accident Board which will assume com- plete control of all controversies which may arise in connection with the administration of these funds, we have also followed the example of other states. The method of arbitration provided is simple and summary. The committee of. arbitration is created to con- sist of three members, one of whom shall be a member of the Industrial Accident Board, who shall act as the chairman, and the others are appointed respectively by the parties in dispute. They are required to meet at the place where the accident occurred, and to conduct a thorough investigation and hearing, and to file their find- ings with the Industrial Accident Board. Either party may within seven days demand a review by the Industrial Accident Board, which shall thereupon examine the records of the committee of arbitration, together with such other evidence as the parties may desire to submit, and make a final decision. The findings of fact of the Board acting within its powers and in good faith shall be final as to such matters, but the Supreme Court may review questions of law involved in such decisions or rulings of the board, and give such directions as justice may require. This plan is similar to that adopted in Massachusetts and differs from the Wisconsin law only in that the latter permits review by the circuit court of questions of law involved in the rulings of such board, and then an appeal to the supreme court. We have deemed, however, that the shorter course is the best, because it is of the utmost import- ance that the injured workman (or in case of death, his dependents) should receive the compensation accruing to them under this net as promptly and with as little expense and difficulty as shall be reason- ably possible. It may be that the task imposed upon this board in requiring one member thereof to act as 1lio chairman of the committee of arbitration created to determine every dispute, will prove greater than it will be able to perform, on account of the number of controversies. If so, the board can be relieved by amending the law so as to provide for the appointment of one or more expert examiners, who may act in the same capacity on such committee of arbitration as a member of the Industrial Accident Board under the law as here proposed. We think, however, it is highly desirable that the members of the Industrial Acci- dent Board should, at least to begin with, be brought in close personal contact with both employers and employes, and deal at short range with the controversies which will necessarily arise under this law. Notwith- standing the care with which any law of this character may be drafted, it is foredoomed to failure unless efficiently administered by a board in sympathy with its purposes and who are, or may become, thoroughly familiar with the economic conditions to which it applies. As the operation of this law upon both employer and employe rests WORKMEN'S COMPENSATION COMMISSION. 39 necessarily upon their assent, express or implied, it may be said that the election of either to come within its terms amounts to the acceptance by them of the methods provided for enforcing collection of compensa- tion, as well as the compensation itself, and that such acceptance will constitute a waiver of any other method of enforcing liability, including trial by jury. Furthermore, since such election on the part of the em- ployer and of the employe removes any such controversy from the scope of the common law, it may be said that as to them the common law right of action, with all its incidents, including the right of trial by jury, has been effectually disposed of. We cannot hope that this proposed law will prove satisfactory to all. We have, however, in the preparation of it, drawn widely from the ex- perience of other states, as well as from the statistics and information which we have collected, and we present it for consideration in the firm belief that it represents to the full extent of present experience a broad and comprehensive plan for the adjustment of such controversies between employers and employes. 40 EMPLOYERS' LIABILITY AND A BILL To promote the general health and welfare of the people of this State, relating to the liability of employers for injuries or death sus- tained by their employes, providing compensation for the accidental injury to or death of employes and methods for the payment of the same, including the incorporation of mutual associations to insure the payments of such compensation, establishing an Industrial Accident Board, defining its powers, providing 'for a review of its awards, mak- ing an appropriation to carry out the provisions of this act, and re- stricting the right to compensation or damages in such cases, to such as are provided by this act. The People of the State of Michigan enact: PART I. MODIFICATION OF REMEDIES. SECTION 1. In an action to recover damages for personal injury sus- tained by an employe in the course of his employment, or for death resulting from personal injury so sustained, it shall not be a defence : (a) That the employe was negligent unless and except it shall appear that such negligence was wilful; (b) That the injury was caused by the negligence of a fellow employe ; (c) That the employe had assumed the risks inherent in or incidental to, or arising out of his employment, or arising from the failure of the employer to provide and maintain safe premises and suitable appliances. SEC. 2. The provisions of Section 1 shall not apply to actions to recover damages for personal injuries sustained by household domestic servants and farm laborers. SEC. 3. The provisions of Section 1 shall not apply to actions to recover damages for the death of, or for personal injuries sustained by employes of any employer who has elected, with the approval of the Industrial Accident Board hereinafter created, to pay compensation in the manner and to the extent hereinafter provided. SEC. 4. Any employer who has elected, with the approval of the Industrial Accident Board hereinafter created, to pay compensation as hereinafter provided, shall not be subject to the provisions of Sec- tion 1; nor shall such employer be subject to any other liability what- soever, save as herein provided, for the death of or personal injury to any employe, for which death or injury compensation is recoverable under this act, except as to employes who have elected in the manner hereinafter provided not to become subject to the provisions of this act. SEC. 5. The following shall constitute employers subject to the pro- visions of this act: WORKMEN'S COMPENSATION COMMISSION. 41 1. The State and each county, city, township, incorporated village and school district therein. 2. Every person, firm and private corporation (including any public service corporation) who has any person "in service under any contract of hire, express or implied, oral or written, and who, at or prior to the time of the accident to the employe for which compensation under this act may be claimed, shall in the manner provided in the next section, have elected to become subject to the provisions of this act, and who shall not, prior to such accident, have effected a withdrawal of such election, in the manner provided in the next section. SEC. 6. Such election on the part of the employers mentioned in sub- division two of the preceding section, shall be made by filing with the Industrial Accident Board hereinafter provided for, a written state- ment to the effect that such employer accepts the provisions of this act, and that he adopts, subject to the approval of said Board, one of the four methods provided for the payment of the compensation herein- after specified. The filing of such statement and the approval of said Board shall operate, within the meaning of the preceding section, to sub- ject such employer to the provisions of this act and all acts amendatory thereof for the term of one year from the date of the filing of such statement, and thereafter, without further act on his part, for successive terms of one year each, unless such employer shall, at least thirty days prior to the expiration of such first or any succeeding year, file in the office of said Board a notice in writing to the effect that he desires to withdraw his election to be subject to the provisions of this act: Pro- vided, however, That such employer so electing to become subject to the provisions of this act shall within ten days after the approval by said Board of his election filed as aforesaid, post in a conspicuous place in his plant, shop, mine or place of work, or if such employer be a .transportation company, at its several stations and docks, notice in the form as prescribed and furnished by the Industrial Accident Board to the effect that he accepts and will be bound by the provisions of this act. SEC. 7. The term "employe" as used in this act shall be construed to mean : 1. Every person in the service of the State, or of any county, city, township, incorporated village or school district therein, under any ap- pointment, or contract of hire, express or implied, oral or written, ex- cept any official of the State, or of any county, city, township, incorpo- rated village or school district therein, provided that one, employed by a contractor, who has contracted with a county, city, township, in- corporated village, school district or the State, through its representa- tives, shall not be considered an employe of the State, county, city, township, incorporated village or school district which made the con- tract. 2. Every person in the service of another under any contract of hire, express or implied, oral or written, including aliens, and also including minors who are legally permitted to work under the laws of the State (who, for the purposes of this act, shall be considered the same and have the same power to contract as adult employes), but not including any person whose employment is but casual or is not 42 EMPLOYERS' LIABILITY AND in the usual course of the trade, business, profession, or occupation of his employer. SEC. 8. Any employe as defined in subdivision one of the preceding section shall be subject to the provisions of this act and of any act amendatory thereof. Any employe as defined in subdivision two of the preceding section shall be deemed to have accepted and shall be subject to the provisions of this act and of any act amendatory thereof if, at the time of the accident upon which liability is claimed : 1. The employer charged with such liability is subject to the pro- visions of this act, whether the employe has actual notice thereof or not; and 2. Such employe shall not, at the t-ime of entering into his contract of hire, express or implied, with such employer, have given to his em- ployer notice in writing that he elects not to be subject to the provi- sions of this act; or, in the event that such contract of hire was made before such employer became subject to the provisions of this act, such employe shall have given to his employer notice in writing that he elects not to be subject to such provisions, or without giving either of such notices shall have remained in the service of such employer for thirty days after the employer has filed with said Board an election to be subject to the terms of this act. An employe who has given notice to his employer in writing as aforesaid that he elects not to be subject to the provisions of this act, may waive such claim by a notice in writ- ing, which shall take effect five days after it is delivered to the em- ployer or his agent. PART II. COMPENSATION. SEC. 1. If an employe who has not given notice of his election not to be subject to the provisions of this act, as provided in Part 1, Sec- tion 8, or who has given such notice and has waived the same as herein- before provided, receives a personal injury arising out of and in the course of his employment by an employer who is at the time of such injury subject to the provisions of this act, he shall be paid compensa- tion in the manner and to the extent hereinafter provided, or in case of his death resulting from such injuries such compensation shall be paid to his dependents as hereinafter defined. SEC. 2. If the employe is injured by reason of his serious and wilful misconduct, he shall not receive compensation under the provisions of this act. SEC. 3. No compensation shall be paid under this act for any injury which does not incapacitate the employe for a period of at least two weeks from earning full wages, but if incapacity extends beyond the period of two weeks, compensation shall begin on the 15th day after the injury : Provided, however, That if such disability continues for eight weeks or longer, such compensation shall be computed from the date of the injury. SEC. 4. During the first three weeks after the injury the employer WORKMEN'S COMPENSATION COMMISSION. 43 shall furnish, or cause to be furnished, reasonable medical and hospital services and medicines when they are needed. SEC. 5. If death results from the injury, the employer shall pay, or cause to be paid, subject, however, to the provisions of Section 12 hereof, in one of the methods hereinafter provided, to the dependents of the employe, wholly dependent upon his earnings for support at the time of the injury, a weekly payment equal to one-half his average weekly wages, but not more than ten dollars nor less than four dollars a week for a period of three hundred weeks from the date of the injury. If the employe leaves dependents only partly dependent upon his earn- ings for support at the time of his injury, the weekly compensation to be paid as aforesaid shall be equal to the same proportion of the weekly payments for the benefit of persons wholly dependent as the amount contributed by the employe to such partial dependents bears to the annual earnings of the deceased at the time of his injury. When weekly payments have been made to an injured employe before his death the compensation to dependents shall begin from the date of the last of such payments, but shall not continue more than three hundred weeks from the date of the injury". SEC. 6. The following persons shall be conclusively presumed to be wholly dependent for support upon a deceased employe: (a) A wife upon a husband with whom she lives at the time of his death. (b) A husband upon a wife with whom he lives at the time of her death. (c) A child or children under the age of sixteen years (or over said age, if physically or mentally incapacitated from earning) upon the parent with whom he is or they are living at the time of the death of such parent, there being no surviving parent^ In case there is more than one child thus dependent, the death benefit shall be divided equally among them. In all other cases questions of dependency, in whole or in part, shall be determined in accordance with the fact, as the fact may be at the time of the injury; and in such other cases, if there is more than one person wholly dependent, the death benefit shall be divided equally among them, and persons partly dependent, if any, shall receive no part thereof; if there is no one wholly dependent and more than one person partly dependent, the death benefit shall be divided among them according to the relative extent of their dependency. No person shall be considered a dependent unless a member of the family of the deceased employe, or bears to him the relation of husband or widow, or lineal descendant, or ancestor, or brother, or sister. SEC. 7. Questions as to who constitute dependents and the extent of their dependency shall be determined as of the date of the accident to the employe, and their right to any death benefit shall become fixed as of such time, irrespective of any subsequent change in conditions; and the death benefit shall be directly recoverable by and payable to the dependent or dependents entitled thereto, or their legal guardians or trustees. In case of the death of one such dependent his propor- tion of such compensation shall be payable to the surviving dependents pro rata. Upon the death of all such dependents compensation shall cease. No person shall be excluded as a dependent who is a non-resi- dent alien. No dependent of an injured employe shall be deemed dur- 44 EMPLOYERS' LIABILITY AND ing the life of such employe a party in interest to any proceeding by him for the enforcement of collection of any claim for compensation, nor as respects the compromise thereof by such employe. SEC. 8. If the employe leaves no dependents the employer shall pay, or cause to be paid as hereinafter provided, the reasonable expense of his last sickness and burying, which shall not exceed two hundred dol- lars. SEC. 9. While the incapacity for work resulting from the injury is total, the employer shall pay, or cause to be paid as hereinafter pro- vided, to the injured employe a weekly compensation equal to one-half his average weekly wages, but not more than ten dollars nor less than four dollars a week; and in no -case shall the period covered by such compensation be greater than five hundred weeks, nor shall the total amount of all compensation exceed four thousand dollars. SEC. 10. While the incapacity for work resulting from the injury is partial, the employer shall pay, or cause to be paid as hereinafter provided, to the injured employe a weekly compensation equal to one- half the difference between his average weekly wages before the injury and the average weekly wages which he is able to earn thereafter, but not more than ten dollars a week ; and in no case shall the period covered by such compensation be greater than three hundred weeks from the date of the injury. In cases included by the following schedule the disa- bility in each such case shall be deemed to continue for 1 the period speci- fied, and the compensation so paid for such injury shall be as speci- fied therein, to-wit: For the loss of a thumb, fifty per centum of the average weekly wages during sixty weeks. For the loss of a first finger, commonly called index finger, fifty per centum of average weekly wages during thirty-five weeks. For the loss of a second finger, fifty per centum of average weekly wages during thirty weeks. For the loss of a third finger, fifty per centum of average weekly wages during twenty weeks. For the loss of a fourth finger, commonly called little fioager, fifty per centum of average weekly wages during fifteen weeks. The loss of the first phalange of the thumb, or of any finger, shall be considered to be equal to the loss of one-half of such thumb, or finger, and compensation shall be one-half the amounts above specified. The loss of more than one phalange shall be considered as the loss of the entire finger or thumb; providing, however, that in no case shall the amount received for more than one finger exceed the amount pro- vided in this schedule for the loss of a hand. For the loss of a great toe, fifty per centum of average weekly wages during thirty weeks. For the loss of one of the toes other than a great toe, fifty per centum of average weekly wages during ten weeks. The loss of the first phalange of any toe shall be considered to be equal to the loss of one-half of such toe, and compensation shall be one-half of the amount above specified. WORKMEN'S COMPENSATION COMMISSION. 45 The loss of more than one phalange shall be considered as the loss of the entire toe. For the loss of a hand, fifty per centum of average weekly wages during one hundred and fifty weeks. For the loss of an arm, fifty per centum, of average weekly wages during two hundred weeks. For the loss of a. foot, filfty per centum of average weekly wages dur- ing one hundred and twenty-five weeks. For the loss of a leg, fifty per centum of average weekly wages dur- ing one hundred and seventy-five weeks. For the loss of an eye, fifty per centum of average weekly wages dur- ing one liundred weeks. The loss of both hands, or both arms, or both feet, or both legs, or both eyes, or of any two thereof, shall constitute total and permanent disability, to be compensated according to the provisions of Section 9. The amounts specified in this clause are all subject to the same limitations as to maximum and minimum as above stated. SEC. 11. The term; "average weekly wages" as used in this act is deilned to be one fifty-second part of the average annual earnings of the employe. If the injured employe has not worked in the employment in which he was working at the time of the accident, whether for the employer or not, during substantially the whole of the year immediately preceding his injury, his average annual earnings shall consist of three liundred times the average daily wage or salary which he has earned in such employment during the days when so employed. If the injured employe has not worked in such employment during substantially the whole of such immediately preceding year, his average annual earn- ings shall consist of three hundred times the average daily wage or salary Avhich an employe of the same class working substantially the whole of such immediately preceding year in the same or a similar employment in the same or a neighboring place, shall have earned in such employment during the days when so employed. In cases where the foregoing methods of arriving at the average annual earnings of the injured employe cannot reasonably and fairly be applied, such an- nual earnings shall be taken at such sum as, having regard to the previous earnings of the injured employe, and of other employes of the same or most similar class, working in the same or, most similar em- ployment, in the same or neighboring locality, shall reasonably represent the annual earning capacity of the injured employe at the time of the accident in the employment in which he was working at such time. The fact that an employe has suffered a previous disability, or received compensation therefore, shall not preclude compensation for a later in- jury, or for death, but in determining compensation for the later in- jury, or death, his average annual earnings shall be such sum as will reasonably represent his annual earning capacity at the time of the later injury in the employment in which he was working at such time and shall be arrived at according to and subject to the limitations of the provisions of this section. The weekly loss in wages referred to in this act, shall consist of such percentage of the average weekly earn- 46 EMPLOYERS' LIABILITY AND ings of the injured employe, computed according to the provisions of this section, as shall fairly represent the proportionate extent of the impairment of his earning capacity in the employment in which he was working at the time of the accident, the same to be fixed as of the time of the accident, but to be determined in view of the nature and extent of the injury. SEC. 12. The death of the injured employe prior to the expiration of the period within which he would receive such weekly payments shall be deemed to end such disability and all liability for the remain- der of such payments which he would have received in case he had lived shall be terminated, but the employer shall thereupon be liable for the following death benefits in lieu of any further disability indemnity : If the injury so received by such employe was the proximate cause of his death, and such deceased employe leaves dependents, as hereinbefore specified, wholly or partially dependent on him for support, the death benefit shall be a sum, sufficient, when added to the indemnity which shall at the time of death have been paid or become payable under the provisions of this act to such deceased employe, to make the total com- pensation for the injury and death (exclusive of medical and hospital services and medicines furnished as provided in Section 4 hereof) equal to the full amount which such dependents would have been entitled to receive under the provisions of Section 5 hereof in case the accident had resulted in immediate death, and such benefits shall be payable in weekly installments in the same manner and subject to the same terms and conditions in all respects as payments made under the provisions of said Section 5. SBC. 13. No savings or insurance of the injured employe, nor any contribution made by him to any benefit fund or protective association independent of this act, shall be taken into consideration in determin- ing the compensation to be paid hereunder, nor shall benefits derived from any other source than those paid or caused to be paid by the em- ployer as herein provided, be considered in fixing the compensation un- der this act. SEC. 14. If an injured employe is mentally incompetent or is a minor at the time when any right or privilege accrues to him under this act, his guardian or next friend may in his behalf claim and exercise such right or privilege. SEC. 15. No proceedings for compensation for an injury under this act shall be maintained unless a notice of the injury shall have been given to the employer as soon as practicable after the happening there- of, and unless the claim for compensation with respect to such injury shall have been made within three months after the occurrence of the same; or, in case of the death of the employe, or in the event of his physical or mental incapacity, within three months after death or the removal of such physical or mental incapacity. SEC. 16. The said notice shall be in writing, and shall state in ordi- nary language the time, place and cause of the injury; and shall be signed by the person injured, or by a person in his behalf, or, in the event of his death, by his dependents or by a person in their behalf. SEC. 17. The notice shall be served upon the employer or an agent thereof. Such service may be made by delivering said notice to the per- son on whom it is to be served, or leaving it at his residence or place WORKMEN'S COMPENSATION COMMISSION. 47 of business, or by sending it by registered mail addressed to the person or corporation on whom it is to be served, at his last known residence or place of business. SEC. 18. A notice given under the provisions of this act shall not be held invalid or insufficient by reason of any inaccuracy in stating the time, place or cause of the injury, unless it is shown that it was the intention to mislead, and the employer (or the insurance company carrying such risk or the commissioner of insurance as the case may be) was in fact misled thereby. Want of notice shall not be a bar to proceedings under this act, if it be shown that the employer had knowl- edge of the injury. SEC. 19. After an employe has given notice of an injury, as provided by this act, and from, time to time thereafter during the continuance of his disability he shall, if so requested by the employer (or the in- surance company carrying such risk, or the commissioner of insurance, as the case may be) submit himself to an examination by a physician or surgeon authorized to practice medicine under the laws of the State furnished and paid for by the employer (or the insurance company carry- ing such risk, or the commissioner of insurance, as the case may be). The employe shall have the right to have a physician provided and paid for by himself present at the examination. If he refuses to submit himself for the examination, or in any way obstructs the same, his right to compensation shall be suspended, and his compensation during the period of suspension may be forfeited. Any physician who shall make or be present at any such examination may be required to testify under oath as to the results thereof. SEC. 20. No agreement by an employe to waive his rights to com- pensation under this act shall be valid. SEC. 21. No payment under this act shall be assignable or subject to attachment or garnishment, or be held liable in any way for any debts. SEC. 22. Whenever any weekly payment has been continued for not less than six months, the liability therefor may be redeemed by the payment of a lump sum by agreement of the parties, subject to the approval of the Industrial Accident Board, and said Board may at any time direct in any case, if special circumstances be found which in its judgment require the same, that the deferred payments be commuted on the present worth thereof at five per cent per annum to one or more lump sum payments, and that such payments shall be made by the employer or the insurance company carrying such risk or commissioner of insurance as the case may be. PABT III. PROCEDURE. SECTION 1. There is hereby created a board which shall be known as the Industrial Accident Board, consisting of three members to be appointed by the Governor, by and with the advice and consent of the Senate, one of whom shall be designated by the Governor as chairman. The term of office of members of this board shall be six years, except 48 EMPLOYERS' LIABILITY AND that when first constituted one member shall be appointed for two years, one for four years, and one for six years. Thereafter one member shall be appointed every second year for the full term of six years. SEC. 2. The salary of the chairman shall be five thousand dollars a year, and the salary of each of the other two members so appointed by the Governor shall be four thousand five hundred dollars per year. I'he board may appoint a secretary at a salary of not more than three thousand dollars a year, and may remove him, The board shall be provided with an office in the Capitol, or in some other suitable build- ing in the city of Lansing, in which its records shall be kept, and it shall also be provided with necessary office furniture, stationery and other supplies. It shall provide itself with a seal for the authentication of its orders, awards and proceedings, upon which shall be inscribed the words "Industrial Accident Board Michigan Seal." It shall employ such assistants and clercial help as it may deem necessary and fix the compensation of all persons so employed. The members of the board and its assistants shall be entitled to receive from the State their actual and necessary expenses while traveling on the business of the board; but such expenses shall be sworn to by the person who incurred the same, and be approved by the chairman of the board before payment is made. All such salaries and expenses of said Board and its assistants authorized by this act shall be audited and paid out of the general funds of the State, the same as other general State expenses are audited and paid. SEC. 3. The Board may make rules not inconsistent with this act for carrying out the provisions of the act. Process and procedure under this act shall be as summary as reasonably may be. The board or any member thereof shall have the power to administer oaths, subpoena witnesses and to examine such parts of the books and records of the parties to a proceeding as relate to questions in dispute. SEC. 4. The Board shall cause to be printed and furnish free of charge to any employer or employe such blank forms as it shall deem requisite to facilitate or promote the efficient administration of this act; it shall provide a proper record book in which shall be entered and indexed the name of any employer who shall file a statement of election under this act, and the date of the filing thereof and its approval by such board, and a separate book in which shall be entered and indexed the jiame of every employer who shall file his notice of withdrawal of said election, and the date of the filing thereof; and books in which shall be recorded all orders and awards made by the board; and such other books or records as it shall deem required by the proper and efficient administration of this act; all such records to be kept in the office of the board. Upon, the filing of a statement of election by an employer to become subject to the provisions of this act, the board shall forth- with cause such notice of the fact to be given by requiring said employer to post such notice as hereinbefore provided; and the board shall like- wise cause notice to be given of the filing of any withdrawal of such election; but notwithstanding the failure to give, or the insufficiency of, any such notice, knowledge of all filed statements of election and notices of withdrawal of election, and of the time of the filing of the same, shall conclusively be imputed to all employes. SEC. 5. If the employer (or the insurance company carrying such WORKMEN'S COMPENSATION COMMISSION. 49 risk or commissioner of insurance as the case may be) and the injured employe reach an agreement in regard to compensation under this act, a memorandum of such agreement shall be filed with the Industrial Acci- dent Board, and, if approved by it, shall be deemed final and binding upon the parties thereto. Such agreements shall be approved by said board only when the terms conform to the provisions of this act. SEC. 6. If the employer (or the insurance company carrying such risk or the commissioner of insurance as the case may be) and the employe fail to reach an agreement in regard to compensation under this act, either party may notify the Industrial Accident Board, who shall thereupon call for the formation of a committee of arbitration. The committee of arbitration shall consist of three members, one whom shall be a member of the Industrial Accident Board, and shall act as chairman. The other two members shall be named respectively by the two parties. SEC. 7. It shall be the duty of the Industrial Accident Board, upon notification that the parties have failed to reach an agreement, to request both parties to appoint their respective representatives on the committee of arbitration. The board shall designate one of its members to act as chairman, and, if either party does not appoint its member on this committee within seven days after notification, as above provided, the Board or any member thereof shall fill the vacancy and notify the parties to that effect. SEC. 8. The committee of arbitration shall make such inquiries and investigations as it shall deem: necessary. The hearings of the commit- tee shall be held at the locality where the injury occurred, and the decision of the committee shall be filed with the Industrial Accident Board. Unless a claim; for a review is filed by either party within seven days, the decision shall stand as the decision of the Industrial Accident Board. SEC. 9. The Industrial Accident Board or any member thereof may appoint a duly qualified impartial physician to examine the injured employe and to report. The fee for this service shall be five dollars and traveling expenses, but the board may allow additional reasonable amounts in extraordinary cases. SEC. 10. The arbitrators named by or for the parties to the dispute shall each receive five dollars a day for his services, but the Industrial Accident Board or any member thereof may allow additional reason- able amounts in extraordinary cases. The fees of such arbitrators and other costs of such arbitration, not exceeding, however, the taxable costs allowed in suits at law in the circuit courts of this State, shall be fixed by the board and paid by the State as the other expenses of the Board are paid. The fees and the payment thereof of all attorneys and physicians for services under this act shall be subject to the ap- proval of the Industrial Accident Board. SEC. 11. If a claim for review is filed, as provided in Part III, Sec- tion 8, the Industrial Accident Board shall promptly review the decision of the committee of arbitration and such records as may have been kept of its hearings, and shall also if desired hear the parties, together with such additional evidence as they may wish to submit, and fille its decision therein with the records of such proceedings. Such review and 7 50 EMPLOYERS' LIABILITY AND hearing may be held in its office at Lansing or elsewhere as the Board shall deem advisable. SEC. 12. The findings of fact made by said Industrial Accident Board acting within its powers, shall, in the absence of fraud, be conclusive, but the Supreme Court shall have power to review questions of law in- volved in any final decision or determination of said Industrial Accident Board, provided that application is made by the aggrieved party within thirty days after such determination by certiorari, mandamus or by any other method permissible under the rules and practice of said court or the laws of this State, and to make such further orders in respect thereto as justice may require. SEC. 13. Either party may present a certified copy of the decision of such Industrial Accident Board approving agreements of settlement as provided in Part III, Section 5 hereof, or of the decision of such com- mittee of arbitration when no claim for review is made as provided in Part III, Section 8, or of the decision of such Industrial Accident Board when a claim for review is filed as provided in Part III, Section 11, providing for payment of compensation under this act, to the Cir- cuit Court for the County in which such accident occurred, whereupon said court shall, without notice, render a judgment in accordance there- with against said employer and also against any insurance company carrying such risk under the provisions of this act; which judgment, until and unless set aside shall have the same effect as though duly rendered in an action duly tried and determined by said court, and shall, with like effect, be entered and docketed. SEC. 14. Any weekly payment under this act may be reviewed by the Industrial Accident Board at the request of the employer (or the insurance company carrying such risks or the commissioner of insur- ance as the case may be) or of the employe; and on such review it may be ended, diminished or increased, subject to the maximum and mini- mum amounts above provided, if the board finds that the facts warrants such action. SEC. 15. If the committee of arbitration, Industrial Accident Board, or any court before whom any proceedings are brought under this act determines that such proceedings have been brought, prosecuted, or de- fended without reasonable ground, it shall assess the whole cost of the proceedings upon the party who has so brought, prosecuted or de- fended them, and in case such costs are assessed against any employe, may deduct same from any compensation awarded under this act. SEC. 16. Where the injury for which compensation is payable under this act was caused under circumstances creating a legal liability in some person other than the employer to pay damages in respect thereof, the employe may at his option proceed either at law against that person to recover damages, or against the employer for compensation under this act, but not against both, and if compensation be paid under this act the employer may enforce for his benefit or for that of the insurance company carrying such risk or the commissioner of insurance, as the case may be, the liability of such other person. SEC. 17. All questions arising under this act, if not settled by agree- ment by the parties interested therein, shall, except as otherwise herein provided, be determined by the Industrial Accident Board. SEC. 18. Every employer shall hereafter keep a record of all injuries, WORKMEN'S COMPENSATION COMMISSION. 51 fatal or otherwise, received by his employes in the course of their em- ployment. Within ten days after the occurrence of an accident result- ing in personal injury a report thereof shall be made in writing to the Industrial Accident Board on blanks to be procured from the Board for that purpose. The said reports shall contain the name and nature of the business of the employer, the location of his establishment or place of work, the name, age, sex and occupation of the injured employe, and shall state the time, the nature and cause of the injury, and such other information as may be required by the Board. Any employer who refuses or neglects to make the report required by this section shall be punished by a fine of not more than fifty dollars for each offense. PART IV. METHODS OF PAYMENT. SECTION 1. Every employer filing his election to become subject to the provisions of this act, as hereinbefore set forth, shall have the right to specify at the time of doing so, subject to the approval of said In- dustrial Accident Board, which of the following methods for the pay- ment of such compensation he desires to adopt, to wit: First. Upon furnishing satisfactory proof to said board of his solvency and financial ability to pay the compensation and benefits hereinbefore provided for, to make such payments directly to his employes, as they may become entitled to receive the same under the terms and conditions of this act; or Second. To insure against such liability in any employers' liability company authorized to take such risks in the State of Michigan; or Third. To insure against such liability in an employers' insurance association organized as provided in Part V hereof; or Fourth. To request the commissioner of insurance of the State of Michigan to assume the administration of the disbursement of such compensation exclusive of that provided for in Part II, Section 4 herein and the collection of the premiums and assessments necessary to pay the same, as provided in Part VI hereof. Said Board, however, shall have the right, from time to time, to review and alter its decision in approving the election of such employer to adopt any one of the foregoing methods of payment, if in its judg- ment such action is necessary or desirable to secure and safeguard such payments to employes. SEC. 2. Nothing herein shall affect any existing contract for em- ployers' liability insurance or affect the organization of any mutual or other insurance company, or any arrangement now existing between em- ployers and employes, providing for the payment to such employes, their families, dependents or representatives, sick, accident or death benefits, in addition to the compensation provided for by this act. But liability for compensation under this act shall not be reduced or affected by any insurance, contribution or other benefit whatsoever, due to or received by the person entitled to such compensation, and the person so entitled shall, irrespective of any insurance or other contract, have the right 52 EMPLOYERS' LIABILITY AND to recover the same directly from the employer; and in addition thereto, the right to enforce in his own name, in the manner provided in this act, the liability of any insurance company or of any employers' associa- tion organized "under the provisions of Part V hereof, or the commis- sioner of insurance, who may, in whole or in part, have insured the liability for such compensation : Provided, however, That payment in whole or in part of such compensation by either the employer (or the insurance company carrying such risk or the commissioner of insur- ance as the case may be) shall, to the extent thereof, be a bar to re- covery against the other, of the amount so paid. SEC. 3. Every contract for the insurance of the compensation herein provided for, or against liability therefore, shall be deemed to be made subject to the provisions of this act, and provisions thereof inconsist- ent with this act shall be void. No company shall enter into any such contract for insurance unless such company shall have been approved by the commissioner of insurance, as provided by law. . SEC. 4. Any employer against whom liability may exist for com- pensation under this act may, with the approval of the Industrial Acci- dent Board, be relieved therefrom by: 1. Depositing the present value of the total unpaid compensation for which such liability exists, assuming interest at three per centum per annum, with such trust company of this State as shall be designated by the employe (or by his dependents, in case of his death, and such liability exists in their favor), or in default of such designation by him (or them) after ten days' notice in writing from the employer, with such trust company of this State as shall be designated by the Industrial Accident Board; or 2. By the purchase of an annuity, within the limitations provided by law, in any insurance company granting annuities and licensed in this State, which may be designated by the employe, or his dependents, or the Industrial Accident Board, as provided in subsection 1 of this Section. PART V. EMPLOYERS^ INSURANCE ASSOCIATIONS. SECTION 1. Any number of persons, firms, partnership associations or corporations, not less than five, who have become subject to the pro- visions of this act, and who own or operate mills, factories, manufac- turing establishments of any and every kind, buildings, stores, hotels and mercantile establishments, or any combination of manufacturing and mercantile business, mines, quarries, blast furnaces, railroads and transportation companies, telegraph and telephone companies, or who are engaged in the production or supplying of gas and electricity for lighting, fuel, power, or other purposes ; printing, publishing and book- making, or in carrying on any other lawful business in the State of Michigan, may, subject to the approval of said Industrial Accident Board, associate together and form an incorporated company for the purpose of mutual insurance of its members against liability for any and all payments which may become due and payable to their employes under the provisions of this act for death benefits, disability benefits, WORKMEN'S COMPENSATION COMMISSION. 53 or otherwise, as hereinbefore set forth: Provided, however, That the persons, firms or corporations so associating themselves together for the organization of such company shall have on their pay-rolls at that time not less than ten thousand employes: And provided further, That said Industrial Accident Board may, in its discretion, limit the em- ployers forming or joining in the organization of any such company to those engaged in industrial operations of the same general character, or in operations in which the risks and hazards incurred by their em- ployes are more or less similar in nature and extent. SEC. 2. Such employers so associating shall prepare in duplicate, articles of association', as hereinafter specified, which shall first be submitted to said Industrial Accident Board and the Commissioner of Insurance for their approval, and when approved, one copy thereof shall be filed in the office of the commissioner of insurance, and the other copy with the county clerk in the county where the principal office of such company will be maintained. Such articles of association shall be signed by all the in corporators, and shall be acknowledged by them, or by their duly authorized officers or agents, before some officer of the State duly authorized to take acknowledgment of deeds, SEC. 3. Sucto articles of association shall set forth : First. The names of the persons, fi'rms, partnership associations and corporations associating in the first instance, their respective residences, the nature of the business in which they are engaged, and the number of persons employed therein by each of them. Second. That each and all of such incorporators have elected, with the approval of their Industrial Accident Board, to become subject to the provisions of this act, and are forming this corporation for the pur- pose of mutually insuring their members against liability for any and all payments which may become due and payable to their employes under the provisions of this act. Third. The name by which such corporation shall be known. Fourth. The period for which the company is incorporated, which shall not exceed thirty (SO 1 ) years. Fifth. The number of directors, which shall be not less than five (5), nor more than fifteen (15), and the names of the directors for the first year. Sixth. " The place where the office of the company shall be located, which shall be within the State of Michigan. SEC. 4. Any company formed under this act shall be deemed a party corporate and politic in fact and in name, and shall be subject to all the provisions of the statutes in relation to corporations, so far as they are applicable. SEC. 5. The incorporators of any company organized under this act shall have power to make such by-laws not inconsistent with the con- stitution or laws of this State, as may be deemed necessary for the government of its officers and members, and the conduct of its affairs, the admission of new members and regulations governing the assessment and collection of premiums and assessments; but such by-laws shall not become operative until a true copy thereof shall have been filed with and approved by said Industrial Accident Board. SEC. 6. Upon the approval of the articles of association of such company by said Industrial Accident Board and the commissioner of in- 54 EMPLOYERS' LIABILITY AND surance, and upon filing the same with the commissioner of insurance and with the county clerk of the county where the principal office of said company will be kept, the commissioner of insurance shall grant a license to such company to issue policies. SEC. 7. The board of directors shall determine the amount of the premiums of assessments which the members of such company shall pay for such insurance, in accordance with the nature of the business in which they are engaged, and the probable risk of injury to their em- ployes under existing conditions. The board may also prescribe when and in what manner such premiums shall be paid, and may change the amount thereof both in respect to any or all of its members from time to time, as circumstances may require and the conditions of their re- spective plants, establishments or places of work in respect to the safety of their employes may justify, but all such premiums or assessments shall be levied on a basis that shall be fair, equitable and just as among such members; and it shall be the duty of such board of directors to call for the required payment of premiums in such amounts as shall, in their judgment, and subject to the approval of said Industrial Ac- cident Board, be sufficient to enable such company to pay all sums which may become due and payable to the employes of any of its members under the provisions of this act, and also the expenses of conducting its business. SEC. 8. The company shall in its by-laws and policies fix the con- tingent mutual liability of its members for the payment of losses and expenses not provided for by its cash funds. Such contingent liability of a member shall not be less than an amount equal to the liability im- posed by this act. SEC. 9. If the company is not possessed of cash funds so that it has unearned premiums sufficient for the payment of incurred losses and expenses, it shall make an assessment for the amount needed to pay such losses and expenses upon the members liable to assessment there- for in proportion to their several liability. Every member shall pay his proportional part of any assessment which may be laid by the board of directors, in accordance with the law and his contract, on account of injuries sustained and expenses incurred while he is a member of such company. SEC. 10. The board of directors may, from time to time, by vote, fix and determine the amount to be paid as a dividend upon policies expiring during each year after retaining sufficient sums to pay all the compensation which may be payable on account of injuries sustained and expenses incurred. All premiums, assessments and dividends shall be fixed and determined in accordance with the experience of said com- pany, but all the funds of the company, and the contingent liability of all the members thereof, shall be available for the payment of any claim against the company. SEC. 11. Any proposed premium or assessment required of, or any dividend or distribution made to the members, shall be filed with the Industrial Accident Board, and shall not take effect until approved by said board after such investigation as it may deem necessary. SEC. 12. The board of directors may make and enforce reasonable rules and regulations, not in conflict with the laws of this State, for the prevention of injuries on the premises of members, and for this pur- WORKMEN'S COMPENSATION COMMISSION. 55 pose the inspectors of the company shall have free access to all such prem- ises during regular working hours. Any member neglecting to provide suitable safety appliances as provided by law or as required by the board of directors may be expelled by a majority vote of all the mem- bers. Any member, or employe of any member, aggrieved by any such rule or regulation, may petition the Industrial Accident Board for review, and it may affirm, amend or annul the rule or regulation. SEC. 13. Any member of said company, who has complied with all its rules, regulations and demands, may withdraw therefrom at the expiration of the period of one year for which he has elected to become subject to the provisions of this act: Provided, however, That he shall give written notice of such withdrawal to said company at least thirty days before the expiration of such period, and provided further that if at the time of such withdrawal liability may exist against such mem- ber and against said company for compensation to employes who have been theretofore killed or injured as hereinbefore provided, such mem- ber shall either relieve himself and said company from such liability in the manner provided in Part IV, Section 4 of this act, or shall other- wise protect and indemnify said company against such liability in such reasonable manner as may be required by the board of directors. SEC. 14. The business year of every company organized, existing or doing business in this State, under and by virtue of the provisions of this act, shall close on the 31st day of December in each; year, and every such company shall within sixty days thereafter prepare, under oath of its president and secretary, and file in the office of the Commissioner of Insurance of this State, and also with said Industrial Accident Board, a detailed statement showing its assets and how invested, liabilities, receipts from premiums, and all other sources, an itemized account of all expenditures, salaries of officers, number of policies or certificates in force, amount insured thereby, claims paid, and amount paid on each claim, claims reported but not paid, claims contested and why, and shall answer such other questions as the Commissioner of Insurance (who shall furnish blanks for that purpose) may require, in order to ascertain its true financial condition. The Commissioner shall publish such annual statements in detail in his annual report. SEC. 15. If any officer of the company shall falsely make oath to any certificate required to be filed with the Insurance Commissioner, he shall be guilty of perjury. SEC. 16. Any such company formed under this act shall have power to amend its articles of association and by-laws at its regular annual meeting or at special meetings called and held as provided in its by- laws, but said amendments shall, before they become operative, be ap- proved and filed in the same manner as the original articles and by- laws. SEC. 17. Any such company formed under this act shall have power to own, hold and acquire such real and personal property as shall be necessary for the transaction of its business. SEC. 18. Any company formed under this act may sue and be sued in any court of law or equity, with the same rights and obligations as a natural person, and in addition to the powers hereinbefore enumerated, shall possess and exercise all such rights and powers as are necessarily incidental to the exercise of the powers expressly granted herein. v 56 EMPLOYERS' LIABILITY AND PART VI. ADMINISTRATION BY COMMISSIONER OF INSURANCE. SECTION 1. Whenever five or more employers, who have become sub- ject to the provisions of this act, and who have on their pay-rolls an aggregate number of not less than ten thousand employes, shall in writ- ing request the commissioner of insurance so to do, he shall assume charge of levying and collection from them such premium and dividends as may from, time to time be necessary to pay the sums which shall become due their employes, or dependents of their employes, as com- pensation under the provisions of this act, and also the expense of con- ducting the administration of such funds ; and shall disburse the same to the persons entitled to receive such compensation under the pro- visions of this act: Provided, however, That neither the commissioner of insurance nor the State of Michigan shall become or be liable or re- sponsible for the payment of claims for compensation under the pro- visions of this act beyond the extent of the funds so collected and re- ceived by him as hereinafter provided. SEC. 2. The commissioner of insurance shall immediately upon assum- ing the administration of the collection and disbursement of the moneys referred to in the preceding section, cause to be created in the State Treasurv a fund to be known as: ACCIDENT FUND. As accidents occur and are reported from time to time, each such em- ployer shall contribute to this fund to the extent of such premiums or assessments as the commissioner shall deem necessary to pay the com- pensation accruing under this act to employes of such employers or to their dependents, which premiums and assessments shall be levied in the manner and proportion hereinafter set forth. SEC. 3. It is the intention that the amounts raised for such fund shall ultimately become neither more nor less than self-supporting and the premiums or assessments levied for such purpose shall be subject to readjustment from time to time by the commissioner of insurance as may become necessary. SEC. 4. The commissioner of insurance may classify the establish- ments or works of such employers in groups in accordance with the nature of the business in which they are engaged and the probable risk of injury to their employes under existing conditions. He shall determine the amount of the premiums or assessments which such em- ployers shall pay to said Accident Fund, and may prescribe when and in what manner such premiums and assessments shall be paid, and may change the amount thereof both in respect to any or all of such employers from time to time, as circumstances may require, and the condition of their respective plants, establishments or places of work in respect to the safety of their employes may justify, but all such prem- iums or assessments shall be levied on a basis that shall be fair, equitable WORKMEN'S COMPENSATION COMMISSION. 57 and just as among such employers. It shall be the duty of the com- missioner of insurance to call for the required payment of premiums in such amounts as shall, in his judgment, and subject to the approval of said Industrial Accident Board, be sufficient to enable him to pay all sums which may become due and payable to the employes of any such employer who has become subject to the provisions of Part VI of this act, and also the expenses of administering such funds. SEC. 5. If any employer shall make default in the payment of any contribution, premium or assessment required as aforesaid by the com- missioner of insurance, the sum due shall be collected by an action at law in the name of the State as plaintiff, and such right of action shall be in addition to any other right of action or remedy. In case any injury happens to any of the workmen of such employer during the period of any default in the payment of any such premium, assessment or contribution, the defaulting employer shall not, if such default be after demand for payment, be entitled to the benefits of this act, but shall be liable to suit by the injured workman (or by his dependents in case death results from such accident) as if he had not elected to become subject to this act. In case, however, the amount actually col- lected in such by such injured workman, or his dependents, shall equal or exceed the compensation to which the plaintiff therein would be entitled under this act, the plaintiff shall not be paid anything out of said Accident Fund. If the said amount shall be less than such compensation under this act, the Accident Fund shall contribute the amount of the deficiency. The person so entitled under the provisions of this section shall have the choice (to be exercised before suit) of proceeding by suit or taking under this act. If such person shall take under this act, the cause of action against the employer shall be as- signed to the State for the benefit of the Accident Fund. SEC. 6. Any employer subject to the provisions of Part VI of this act, who has complied with all the rules, regulations and demands of the Industrial Accident Board and the Commissioner of Insurance, may withdraw therefrom at the expiration of the period of one year for which he has elected to become subject to the provisions of this act: Provided, however, That he shall give written notice of such withdrawal to said Commissioner of Insurance at least thirty days before the ex- piration of such period: And provided further, That if at the time of such withdrawal liability may exist against employer for compensa- tion to employes who have been theretofore killed or injured, as here- inbefore provided, such employer shall either relieve himself and the Commissioner of Insurance from such liability in the manner provided in Part IV, Section 4 of this act, or shall otherwise protect and in- demnify said Commissioner of Insurance against such liability in such reasonable manner as he may require. SEC. 7. In case any controversy shall arise between the commis- sioner of insurance and any employer subject to the provisions of Part VI of this act, relative to any rule or regulation adopted by said com- missioner of insurance, or any decision made by him in respect to the collection, administration and disbursement of such funds, or in case any controversy shall arise between any employe claiming compensation under the provisions of this act and said commissioner of insurance, all such controversies of every kind and nature shall be subject to re- 58 ' EMPLOYERS' LIABILITY AND view in like manner and with the same force and effect in all respects, as is heretofore provided in respect to differences arising through the administration of such funds by the employer, or by a liability insurance company or by an employers' mutual insurance association. SEC. 8. The books, records and payrolls of each employer subject to the provisions of Part VI of this act shall always be open to inspec- tion by the Commissioner of Insurance, or his duly authorized agent or representative, for the purpose of ascertaining the correctness of the amount of the pay-roll reported, the number of men employed, and such other information as said Commissioner may require in the administra- tion of said funds. Refusal on the part of any such employer to sub- mit said books, records and pay-rolls, for such inspection, shall subject the offending employer to a penalty of fifty dollars for each offense, to be collected by civil action in the name of the State and paid into the Accident Fund, and the individual who shall personally give such re- fusal shall be guilty of a misdemeanor. SEC. 9. The Commissioner of Insurance shall issue proper receipts for all moneys so collected and received from employers, as aforesaid, shall take receipts for all sums paid to employers for compensation under the provisions of this act, and shall keep full and complete records of all business transacted by him in the administration of such funds. He may employ such deputies and assistants and clerical help as may be necessary for the proper administration of said funds and the performance of the duties imposed upon him by the provisions of this act and may fix their compensation, and may also remove them. The commissioner of insurance and such deputies and assistants shall be entitled to receive from the State their actual and necessary expenses while traveling on the business of the board, but all such salaries and expenses so authorized by the provisions of this act shall be charged to and paid out of said Accident Fund. He shall include in his annual report a full and correct statement of the administration of suchi fund, showing its financial status and outstanding obligations, the claims and the amount paid on each claim, claims not paid, claims contested and why, and general statistics in respect to all business transacted by him under the provisions of this act. SEC. 10. Disbursements from said Accident Fund shall be made only upon warrants approved by the State Board of Auditors upon vouchers therefor transmitted to them by the commissioner of insurance. If at any time there shall not be sufficient money in said fund wherewith to pay the same, the employer on account of whose workmen it was that such warrant was drawn shall pay the same, and he shall be credited upon his next following contribution to such fund the amount so paid, with interest thereon at the legal rate, from; the date of such payment to the date such next following contribution becomes payable, and if the amount of the credit shall exceed the amount of the contribu- tion, he shall be repaid such excess.' SEC. 11. If this act shall be thereafter repealed, all moneys which are in the Accident Fund at the time of such repeal shall be subject to disposition under the direction of the Circuit Court for the county of Ingham, with due regard, however, to the obligation incurred and existing to pay compensation under the provisions of this act. WORKMEN'S COMPENSATION COMMISSION. 59 PART VII. MISCELLANEOUS PROVISIONS. SECTION 1. If the employe (or Ms dependents, in case of his death) of any employer subject to the provisions of this act files any claim with, or accepts any payment from such employer, or any insurance company carrying such risks, or from the commissioner of insurance on account of personal injury, or makes any agreement, or submits any question to arbitration under this act, such action shall constitute a re- lease to such employer of all claims or demands at law, if any, arising from such injury. SEC. 2. If the provisions of this act relating to compensation for in- juries to or death of workmen shall be repealed or adjudged invalid or unconstitutional, the period intervening between the occurrence of an injury or death and such repeal, or the final adjudication of invalidity, shall not be computed as a part of the time limited by law for the com- mencement of any action relating to such injury or death, but the amount of any compensation which may have been paid for any such injury shall be deducted from any judgment for damages recovered on account of such injury. SEC. 3. This act shall not affect any cause of action existing or pend- ing before it went into effect. SEC. 4. The provisions of this act shall apply to employers and work- men engaged in intrastate commerce, and also to those engaged in interstate or foreign commerce, for whom a rule of liability or method of compensation has been or may be established by the Congress of the United States, only to the extent that their mutual connection with in- trastate work may and shall be clearly separable and distinguishable from interstate or foreign commerce, except that any such employer and any of his workmen working only in this State, may, subject to the approval of the Industrial Accident Board, and so far as not for- bidden by any act of Congress, voluntarily accept and become bound by the provisions of this act in like manner and with the same force and effect in all respects, as is hereinbefore provided for other employ- ers and their workmen. SEC. 5. All acts or parts of acts inconsistent with this act are to be deemed replaced by this act, and to that end are hereby repealed. SEC. 6. The legislature intends that Part V of this act and P'art VI of this act shall each be deemed separable parts thereof and from each other, so that said Part V and said Part VI, or either of them, may fail or be adjudged invalid or unconstitutional, without in any way affecting any other part of this act. SEC. 7. The provisions of this act shall take effect and be in force six months from and after the date on which the same became a law. 60 EMPLOYERS' LIABILITY AND The Commission, having conducted the investigation detailed above, prepared and herewith submits a full report of its inquiries and its con- clusions thereon and presents the foregoing form of a law, which in its unanimous opinion will meet the requirements of this subject in Michigan. Respectfully submitted, HAL H. SMITH. CHARLES R. SLIGH. WILLIAM P. BELDEN. MICHAEL P. McCUEX. OR A E. REAVES. WORKMEN'S COMPENSATION COMMISSION. 61 MICHIGAN EMPLOYERS' LIABILITY AND WORKMEN'S COMPENSATION COMMISSION 813 FORD BUILDING Hal H. Smith, Detroit, Chairman C. R. Sligh, Grand Rapids, Vice-Chalrman Michael P. McCuen, Grand Rapids William P. Belden, Ishpeming Ora E. Reaves, Jackson Richard L. Drake, Secretary Detroit, Michigan, December 15, 1911. Hon. Hal H. Smith, Chairman Michigan Employers' Liability and Work- men's Compensation Commission, Detroit Mich.: Dear Sir: On the pages following will be found a summary of the meetings held by the members of the commission, additional tables relating to accidents in the industrial field, an account of the results accomplished by the investigators employed by the commission, the forms used by them in their search for accidents in the mines, the agri- cultural and industrial centers; you will find also the question blanks sent out from the offices of the commission, and a financial statement of the secretary, the bills having been regularly audited and allowed by the proper authorities. Yours very truly, RICHARD L. DRAKE, Secretary. APPENDICES APPENDIX I. MEETINGS OF THE COMMISSION. LANSING, MICH., JUNE 17, 1911. The first meeting of the Employers' Liability and Workmen's pensation Commission, for the purpose of organization, was held in the Governor's room in the State Capitol at Lansing, and was addressed briefly by Governor Chase S. Osborn. A full membership of the Commission was present, as follows : Hal H. Smith, of Detroit. William P. Belden, of Ishpeming. Charles B. Sligh, of Grand Rapids. Michael P. McCuen, of Grand Rapids. Richard L. Drake, of Detroit. At the conclusion of the Governor's address the Commission went into executive session and Mr. Hal H. Smith, was elected chairman, and Mr. Richard L. Drake Secretary. After a short discussion of the purposes for which the Commission was formed the members adjourned. The Commissioners assembled after recess and a meeting was held at the Downey House, which was called to order by Chairman Smith. On motion it was decided to establish headquarters in Detroit, if not in conflict with the act authorizing the commission as passed by the legislature. The matter of purchasing supplies, the securing of an office force, and the employment of the corps of investigators was by motion dele- gated to Chairman Smith and Secretary Drake. Chairman Smith and Secretary Drake visited President J. L. Snyder, of the Michigan Agricultural College, for the purpose of securing, if possible, students to undertake the work of investigating the agricul- tural districts of the State. President Snyder promised his hearty co- operation. Chairman Smith communicated with Professor Holbrook, of the Uni- versity of Michigan, and secured his promise to recommend students of that college to the commission for the purpose of investigating the in- dustrial field. DETROIT, MICH., JUNE 30, 1911. Meeting called to order at 3 p. m,, in the offices of Chairman Hal H. Smith, who stated that the first business before the members was the selection of the investigators necessary to gather the data for the use of the commission in its investigation of accidents in the industrial Q 66 EMPLOYERS' LIABILITY AND establishments, in the agricultural field, the mines and the lumber dis- trict. The following applicants, after being interviewed by the com- missioners, were then engaged: Messrs. C. E. Eldrid-e, W. M. Nelson, W. W. Merrit, E. K. Dodds, C. B. Randall, A. H. Eggerth, J. C. Murray, R. W. Powell. On motion it was agreed to pay the investigators $20 per week, hotel and traveling expenses. Moved and carried that Secretary Drake superintend the investigating force and work of the commission at a salary of $175 per month and necessary traveling and other expenses when out of the city of Detroit. Moved and carried that Secretary Drake be empowered to certify vouchers for employes' salaries, office supplies, etc. After a thorough discussion the forms submitted to the commission by Chairman Smith for the recording of accidents, to be used by the investigators, were approved as follows: Form A, to be filled from in- formation from the employer; Form B, for the use of the investigators only; Form O, to contain information gathered from the injured em- ploye; Form D, for the use of employers only, containing information as to employes engaged, wages paid, amount of liability insurance, etc. Moved and carried that investigators outside of Detroit be furnished with forms A and B, and investigators in the City of Detroit be fur- nished with blanks A, B and C, and that employers be mailed Form D. Mr. Sligh was unanimously elected vice-chairman. DETROIT, MICH., JULY 22, 1911. Meeting called to order in the office of Hal H. Smith by Vice-Chair- man Charles R. Sligh, there being also present Commissioners Michael P. McCuen and Richard L. Drake. Moved and carried that an additional investigator be engaged to assist in w r ork in the Upper Peninsula, selection of same to be delegated to Mr. Belden. Moved and carried that "C" blanks be sent investigators in Grand Rapids and that as many of same as possible be completed. - Mr. Drake presented to the Commission the ruling of the Board of State Auditors to the effect that no salary could be paid to any member of the Commission. The Commission after determining that the em- ployment of a paid secretary who would devote all his time to the work was necessary 7 , requested Mr. Drake to retain that position. Mr. Drake thereupon resigned as commissioner. GRAND RAPIDS. MICH., AUGUST 3, 1911. Meeting held at the Morton House at 8 p. mi., and called to order by Vice-Chairman Sligh. Present in addition to the chairman of the meet- ing, Commissioners W. P. Belden, Michael P. McCuen, and Secretary Richard L. Drake. Moved and carried that Investigators Dodds, Murray and Hyatt be notified by the secretary, and D. D. Hunting by the vice-chairman, that their services would not be required after August 5th ; that Investigator Powell continue to August 8th and Eggerth to the 12th of August. WORKMEN'S COMPENSATION COMMISSION. 67 Moved and carried that R. L. Drake be employed as Secretary at a salary of $1,000, payable in semi-monthly installments until work of Commission is finished ; time limit on same to be January 1st, 1912. Moved and carried that Secretary communicate with Manufacturers' Association of Muskegon regarding public hearing in that city within two or three weeks. Secretary 7 instructed to communicate with following cities in regard to public meetings of the commission : Ishpeming, Houghton, Muskegon, Grand Rapids, Saginaw, Battle Creek. MUSKEGON, MICH., AUGUST 24, 1911. Meeting of commissioners in afternoon held in Chamber of Commerce rooms. Present : Messrs. C. R. Sligh (Vice-Chairman, who presided), William P. Belden, Michael P. McCucn, and Secretary R. L. Drake. Moved and carried that force of investigators be reduced by releasing George E. Brand, C. B. Randall and W. W. Merritt on August 25th. The Secretary also stated that stenographer Miss Freeman would be released on same date. After an informal session with representative employers of Muske- gon, Messrs. Ford, of Alaska Refrigerator Co., and Mr. Walker, of the Shaw-Walker Co., being present, the commissioners were taken over the city for a view of the factories by Messrs. Ford and Walker. Public meeting held in the evening in Casino Hall, there being present representatives of labor organizations, relief societies, lawyers and em- ployers. After opening remarks explaining the objects of the commission, Chairman Sligh introduced Commissioner Wm. P. Belden as tbe speaker of the evening, whose talk was well received and was the subject of much discussion among those present. Mr. Peter W. Krap, President of the mill men, opened the discussion with a short talk in which he de- plored the lack of interest in this important subject displayed by the workers, who had received ample notice of the meeting, both through notices published in local papers and posted in the various shops, as well as by mail from the offices of the commission. Remarks were also made by Thomas Geraghty, former chief of police of Muskegon, who said accidents would be greatly lessened if employers would install all safeguards the law requires, and if after installation, employes would use them. George R. Murray, President of the Railway Mens' Relief Associa- tion, urged all workers to take an interest in the work of the com- mission. Stephen H. Clink, lawyer, spoke for the retention of the employers' three defences, but in a* modified form and favored less elasticity in their interpretation. J. H. Ford, Manager of Alaska Refrigerator Co., believed industry should bear the burden and in that way provisions for safety would be more adequate. He urged that some action be taken looking toward the compensation of the injured, as in spite of all precautions and warnings workmen will meet with accidents. 68 EMPLOYERS' LIABILITY AND Vice-Chairman Sligh was called upon to answer many questions, which he did in a thoroughly capable manner. BATTLE CREEK, MICH., SEPTEMBER 19, 1911. Chairman Hal H. Smith, Vice-Chairman Charles R. Sligh, Michael P. McCuen and O. E. Reaves, the latter being appointed to fill the va- cancy caused by the resignation of Mr. Drake, attended the meeting with the Michigan Federation of Labor. On the invitation of that body Mr. Smith delivered an address to its members. At the conclusion of Chairman Smith's address, Secretary Drake was called on by President Harris. Commissioners Sligh and McCuen also spoke briefly. A short business session was held at the Clifton Hotel during the afternoon of Tuesday, September 19th, at which time it was agreed to hold a public meeting at Grand Rapids on Friday, September 29th, and also at Detroit, Saturday, September 30th, and the secretary was in- structed to make arrangements for same and provide speakers for the meetings. GRAND RAPIDS, MICH., SEPTEMBER 29, 1911. A public meeting was held by the commission on the afternoon of the above date in the guild room of the Manufacturers' Association of Grand Rapids, in the Pantlind House, at which meeting Commissioners Smith, Sligh, Belden, McCuen and Secretary Drake were present. The meeting was opened for general discussion and papers were read by Mr. Stuart Knappen and Mr. Claude Taylor, President of the Grand Rapids Trades Council. The committee appointed by the Michigan Federation of Labor, to investigate the subject of Workmen's Compensa- tion was present. This committee was composed of W. H. Stewart, and Homer Waterman of Kalamazoo; August Bricault and Claude Taylor of Grand Rapids, and George Bailey of Jackson. After the reading of papers by Messrs. Taylor and Knappen, an in- formal discussion was held and the meeting adjourned. The evening meeting was called to order by Chairman Hal H. Smith of the commission, who spoke briefly upon the objects for which the commission was appointed and the ends to be obtained. He then called on Mr. Aldricli! Blake, who made a brief address. At the conclusion of Aldricli Blake's address, the chairman called on O. H. L. Wernicke, who said in the course of his remarks that he favored a change in the present unjust system so that an injured employe may receive the compensation to which he is entitled and thinks that the man meeting with an accident is entitled to all it costs employers. Prosecuting Attorney Brown stated that it was his impression that the insurance companies and the attorneys were receiving too large a share of the money paid by the employers in connection with personal injuries to their employes. George A. Davis of Stowe and Davis, spoke briefly on the subject of Workmen's Compensation and said he hoped that the employer and em- ploye would be able to mutually agree upon some method of recompense for injuries so that court procedure might be eliminated. WORKMEN'S COMPENSATION COMMISSION. 69 Reverend A. W. Wishart, ex-assistant United States District Attorney Glute, Charles H. Leonard, and F. E. Ranney, were among the other representative citizens present who addressed lie meeting. S. Beattie, local organizer for the carpenters and joiners; Claude Taylor, president of the Trades Council; August Bricault; William Smith and C. B. Waddell of the Grand Rapids Typographical Union, with the committee representing the Michigan Federation of Labor were also present, as were a number of members of the District Trades Council. DETROIT, MICH., SEPTEMBER 30, 1911. Present: Chairman Hal H. Smith, Vice-Chairman Chas. R. Sligh, William P. Belden, Michael P. McCuen, Ora E. Reaves and Secretary R. L. Drake. Two public meetings were arranged by the commission to be held in Detroit on the above date at the Board of Commerce, the afternoon meeting being attended by representatives of the liability insurance com- panies, attorneys, members of the Manufacturers' Association and repre- sentatives of the Detroit Federation of Labor. Chairman Smith opened the meeting with: a statement that the com- mission had agreed upon a recommendation of some form of workmen's compensation, explaining that there was much waste under the present system and that as the law now stood, unless an employee could prove negligence on the part of the employer he could not recover damages in case of accident. Mr. J. D. Dort, of Flint, was called upon by the chairman to give to the meeting his views on the subject of workmen's compensation. He said he believed that the workmen themselves should pay part of the cost of accidents, holding that it would tend to make them aid in pre- venting accidents. While he did not care to put a| premium on intoxica- tion, he believed a man injured while intoxicated should receive com- pensation to some degree unless it caused the accident. Mr. Culver of the legislative committee of the Employers' Associa- tion said he believed that to compensate an intoxicated man would be putting a premium on intoxication, and he did not believe that a man injured as a result of wilful negligence, under which head he would be put by intoxication, should be compensated. Frederick B. Smith, President and General Manager of the Wolverine Manufacturing Company, endorsed the payment of something for every accident by employers. "If there is compensation there should be com- pensation all the way through, and no distinction as to how the acci- dent occurred." Michael Brady, of the Detroit Federation of Labor, was next called upon by the Chairman and stated that it was his belief that workmen should not pay any of the cost of a compensation fund. Edward S. Raymond, Detroit manager of the liability department of the Travelers' Insurance Company, said he believed the companies now in the field, with their organization and knowledge of facts, could handle workmen's insurance for the employers more cheaply than the State, and also expressed the opinion that they could handle the business to much better advantage than mutual associations of employers. 70 EMPLOYERS' LIABILITY AND Attorney Fred L. Vandeveer, also connected with the Travelers' In- surance Company, argued that the cost to the employers of a compensa- tion scheme would be so great that they might be compelled to leave the State. Attorney Frank H. Dohany, of Detroit, said he believed if the defences of the employers were removed those entitled to recover would receive the full amount and there would be much less litigation. He believes also that all injuries should be compensated for. J. Y. Mcllwain, of Port Huron, attorney for the Lady Maccabees, stated he was not in favor of a compensation law, but that he favored the doctrine of comparative negligence. He did not believe that the cost of an employe's negligence should 'be placed on the employer. State Senator Lee said that when a compensation bill was before the legislature the great objection was, that if the employe did not come under the act, but elected to sue at law, he could not successfully re- tain his situation. EVENING SESSION. John Smith, State Deputy Labor Commissioner, was the first speaker of the evening meeting. He contended in his address that a compensa- tion law would mean a decrease in industrial accidents and that the efficiency of the State Labor Department would be greatly improved if such a law were in effect. Clarence Neely, ex-president of Typographical Union No. 18, was the next speaker of the evening and argued that the workmen should pay no part of a cost of the compensation. Antoino Entenza represented the Detroit Federation of Labor and stated that he believed the limit of |3,000 set by the Commission as the maximum compensation for death was too low. Henry Eikhoff, formerly State factory inspector, believed that the workmen should pay part of the cost, the employer part, and the State a part of any compensation law. George Harris, the retiring president of the State Federation of Labor, did not believe the employe should pay any part of the cost and thought the employers should stand it entirely. W. H. Stewart and Homer Waterman, of the Michigan Federation of Labor, were present at this meeting, as well as many other representa- tives of organized labor. This meeting was the last public hearing held by the commission. DETROIT, MICH., DECEMBER 9, 1911. The Commission met at 10 o'clock a. m. Present: Chairman Hal H. Smith, Vice-Chairman Charles R. Sligh, William P. Belden, Michael P. McCuen, Ora E. Reaves, and Secretary Richard L. Drake. The Chairman made the following statement: "You each have a typewritten copy of the report to be submitted to the legislature, and a copy of the bill containing amounts of compensa- tion to be paid injured workmen under the proposed law. The secre- WORKMEN'S COMPENSATION COMMISSION. 71 tary will read the report and the bill and suggestions will be received as to proposed changes, etc." The report was then taken up and read seriatim*, and after thorough discussion of the subject matter so far as it had been read, the meeting adjourned until 9:30, December 10th. DETROIT, MICH., DECEMBER 10, 1911. Meeting called to order by Chairman Smith. Secretary continued reading of report and proposed compensation bill. At the conclusion of the discussion the following motion was made by Mr. Reaves: That Sec. 3 of Part II be amended by adding a clause providing that if disability continues for six weeks payment should relate back to time of accident, and that Section 4 be amended to read four weeks instead of two weeks. Seconded by Mr. McCuen. On vote being taken the following result was announced : Yeas Mr. Reaves and Mr. McCuen. Nays Mr. Belden, Mr. Sligh and Mr. Smith. Motion was thereupon declared lost. Mr. Belden moved that bill as presented be amended by adding to Section 3, Part II, a clause providing that if disability continues for eight weeks payment should relate back to time of accident, and that Section 4 be amended to read three weeks instead of two weeks. Seconded by Mr. Sligh. Carried unanimously. It was then moved that the report as read and the bill as read be adopted as an entirety and as to eacli section and page as the final report of the commission, which motion was upon a roll call unanimously carried. It appearing that for the purpose of completing the work of the Com- mission it is necessary to extend the term of employment of Secretary R. L. Drake beyond January 1, 1912, it was duly moved and seconded that he be employed until January 15, 1912, at the same salary now paid. Carried unanimously. Moved and carried that if the Chairman and Secretary upon investi- gation so decide, an accountant be engaged for the purpose of revising tables contained in report and certifying as to their accuracy. An informal discussion was then had as to the advisability of present- ing a supplemental report at a later date if the experience as 'to Wis- consin, New Jersey and other acts should so necessitate. The Secretary was thereupon directed to prepare corrected copies of the report and to forward same at once to the State Printer. He was also directed to secure a page proof as soon as possible and to present same to each member of commission for his signature. After discussion it was determined to ask permission of the Governor to release the report to the public press at once and the Chairman was directed to make that request by wire. The commission then adjourned to meet upon call of the chairman. 72 EMPLOYERS' LIABILITY AND APPENDIX II. THE COST OF ACCIDENTS. There follow tables showing results to employes of injuries received in various industries throughout the State, giving number injured, loss TABLE XXXI. RECORD OF ACCIDENTS d o> 1 < Compensation. jf <8 2 d o * Wages. Settlements. Other aid. Agricultural implements 2 Automobile manufacturers Brass goods manufacturers Building material Cereal manufacturers Chemists 4 8 5 4 1 o 558 3 3 58 495 $1,700 64 800 57 3 065 74 $1,050 00 1,800 00 $2,265 96 100 00 200 00 7 326 00 Cigar manufacturers 5 o 2 Furniture manufacturers . ... 13 o 19 383 75 312 00 Furniture, metal, manufacturers .... Interior finish 4 2 1 o 39 7 17 50 Lumber 7 o 46 25 00 1 120 61 Machinery manufacturers Metal goods manufacturers Miscellaneous manufacturers Municipalities 17 4 7 3 o 54 4 7 18 462 50 18 00 54 00 197 04 15 00 107 54 Paper 1 o 19 Public utilities 1 24 871 30 739 00 Shoe manufacturers Structural steel Sugar manufacturers Unclassified 1 1 1 3 1 n 10 12 13 4 70 00 "is'so 1,300 00 202 47 379 10 167 00 ' 'is'so 95 00 Vehicle manufacturers Wire manufacturers Woodworkers 1 l 2 1 2 30 ' '27'00' 13 35 ' i02 35 Totals 95 5 1,422 $7,784 19 $4,931 07 $32,768 96 Total paid out as compensation, $25,099.22, being an average of $17.59 per man, fatal and non- fatal included. Total incidental expenses, in addition to compensation received by injured employes, $10,561.95. Total expenses for all accidents, including both compensation paid to injured and expenses attendant upon same, $35,661.17, being an average expense to employers of $24.99 per injured man. WORKMEN'S COMPENSATION COMMISSION. 73 of time, compensation paid, etc. There will also be found in the pages folio-wing reports received from employers, giving the number of in- jured, fatal and non-tatal, the cost of the care of the employe, as well as the liability insurance expense, wages paid, average number of em- ployes, etc. Tables XXXI and XXXII show the comparative cost of accidents to employers who carry liability insurance and those who do not. FIRMS CARRYING NO INSURANCE. Cost incidental to accidents. Total cost of accidents. Average No. employes. Cost per man. Average com- pensation received per man. First aid. Medical. Hospital. Legal. $27 00 1,863 00 25 00 $9 00 204 15 ' '20'00 354 75 "$752 '95' 14 00 2,597 66 "s'oo' 117 00 43 00 " $360' 66' ' '300' 06' $36 00 8,136 70 1,925 00 520 00 1,249 32 12,989 40 10 00 1,283 52 426 18 9 00 1,812 96 892 04 58 00 127 25 197 04 80 50 2,352 70 1,453 00 598 52 1,008 34 238 50 42 50 27 00 187 70 205 6,834 251 82 800 3,567 910 2,763 844 56 1,059 1,947 413 330 490 216 4,070 988 259 948 269 140 37 630 $0 174 1 19 7 65 6 34 1 56 9 27 01 1-10 46 50^ 16 1 71 S 1 to 84 37 55 1 47 2 31 1 06 88 30 73 30 $8 77 633 00 66 66 15 18 20 99 ' '53'5i 44 24 90 10 83 4 50 7 71 10 94 35 00 ' 'is 50 10 00 547 77 408 68 9 00 425 35 250 50 40 00 73 25 125 00 11 00 255 58 64 40 69 50 486 82 83 00 305 00 134 00 56 50 42 50 64 41 137 00 18 16 34 95 41 75 11 15 3 00 ' 'SOO' 381 94 15 00 27 00 3 73 69 00 $1,980 65 $3,598 77 $3,875 59 $1,106 94 $35,661 17 28,108 74 EMPLOYERS' LIABILITY AND TABLE XXXII. RECORD OF ACCIDENTS d V "C H ( Compensation. P "3 I c o Wages. Settlements. Other aid. Agricultural implements Automobiles Automobiles allied Brass goods manufacturers Breweries Building material .... 4 9 9 5 5 5 2 1 o 26 2,215 310 42 45 1 $471 95 500 00 546 00 SI, 728 03 4,975 00 ' '5000 119 00 Cereal manufacturers 3 o 5 60 00 Contractors and builders 6 32 150 00 100 00 Foundries 12 1 121 45 56 390 00 Furniture 30 1 65 1,218 15 116 39 258 75 Furniture, office Glass manufacturers Heating apparatus 8 2 3 o 37 3 ;} 106 15 26 50 200 00 Interior finish i) o 11 26 00 <>0 00 Laundries 3 o 5 20 00 175 00 Leather 6 o 6 115 00 50 00 Lumber 15 1 42 231 60 4,155 00 Machinery manufacturers Metal goods Millers Miscellaneous manufacturers Paints 25 12 3 24 2 1 o 96 280 5 177 75 391 50 1,055 68 50 00 882 85 340 00 5.075 00 72 50 2,575 00 829 74 us oo 33 00 25 00 Paper . . 14 3 (>:i 271 50 1 525 00 130 70 Printing etc 10 o 3 112 00 Public utilities Railway supply manufacturers Shoe manufacturers 9 2 5 2 9 261 650 6 52 25 1,598 08 4,293 80 181 02 Steel goods manufacturers 4 o 17 16 00 Structural steel Sugar manufacturers Vehicle manufacturers 1 1 4 o 347 2 75 30 56 398 13 *3,130 00 10 00 Wearing apparel Wire manufacturers 12 7 o 30 42 48 00 214 00 150 66 450 00 Woodworkers 15 1 71 836 45 275 00 175 00 Totals 269 22 4 618 $8 192 83 30 999 54 $2 010 47 *Of this sum $1,000.00 was paid by the firm. tOf this sum $1,614.25 was paid by firm. The men injured, to the number of 4,640, fatal and non-fatal, received a total of $41,202.84, an average per man of $8.88. There was a total expense incident to injuries per man of $12.71, this including compensation paid. WORKMEN'S COMPENSATION COMMISSION. FIRMS CARRYING INSURANCE. 75 Cost incident to accidents. Total cost of accidents. Amount paid for insurance. Average No. of employes. Average com- pensation received per man. First aid. Medical. Hospital. Legal. ' '$145' 96 111 28 15 00 105 00 $94 25 1,613 33 951 30 127 00 25 00 8 00 56 00 $112 00 200 00 146 94 78 60 ' '$ioo'oo' $678 20 4,187 30 6,880 52 339 60 130 00 8 00 116 00 250 00 997 31 2,591 34 741 65 5 00 37 50 115 50 200 00 167 00 4,936 12 t6,527 25 1,761 41 70 00 5,605 92 1,169 74 2,606 95 283 50 3,580 25 6,396 97 58 00 22 00 4,058 70 30 00 643 13 683 15 1,015 30 2,088 45 $858 03 25,220 69 7,309 84 816 31 537 72 152 50 154 50 4,515 69 3,134 63 3,933 61 865 91 160 00 245 69 554 98 300 10 441 32 4,113 03 5,095 80 4,324 57 280 00 4,729 57 384 61 2,542 78 898 08 8,874 39 10,805 27 394 16 422 00 3,957 10 88 00 1,285 11 1,883 69 745 77 2,798 16 496 15,729 4,958 933 160 76 125 848 1,577 4,290 956 290 144 363 405 384 1,262 1,998 2,142 112 4,051 590 1,064 557 1,758 3,802 678 360 1,187 115 1,562 4,429 501 1,520 $18 15 11 38 17 97 2 76 122 00 io'66 iso 66 12 00 7 81 3 57 39 26 20 04 "8'83 4 18 32 50 27 50 102 01 57 57 4 15 10 00 19 67 15 59 30 64 37 33 6 96 6 51 "94 9 11 5 00 5 31 16 60 6 28 17 86 343 75 148 05 104 00 96 00 840 00 331 50 5 00 11 00 34 50 5 00 "26" 66' 2 00 30 00 7 00 86 57 15 00 '33'52" 390 50 158 00 20 00 665 32 72 66 130 00 261 64 33 50 2 00 986 24 336 00 545 25 355 66 1,401 75 ' '478' 75' 32 00 107 50 973 17 56 00 6 00 20 66 237 50 84 15 438 50 455 00 56 00 ' 'l26'o6' 9 50 1,169 46 1,096 50 ' '2i6'30' 105 66 287 00 ' 'ih'go' 7 50 101 00 107 80 60 00 $3,817 04 $9,725 11 $3,654 57 $582 20 $58,981 76 $102,723 61 59,422 THE RAILWAYS. A record of accidents occurring on steam railways in Michigan has been tabulated and illustrates the occupations in that industry most liable to injury, the comparative extent of the injuries received as well as the nature" of the accidents. In this group of injuries there was no case of loss of both hands or feet, or one hand and foot. Aside from the fatal, the most serious injuries were the loss of a hand or foot or eye, eleven men sustaining this particular loss in a total of 1,094 injured. 76 EMPLOYERS' LIABILITY AND H OOOC CO COO C O 00 s Cffl -w CO OOJi-iCO <* t-i i I X C! CC C^ -=. a I h 9& re 10 rt-H o i i o d oxoSi^ 8SSSS*S* o SJ2 loceocDO0 00 2 o bo ? o c o % lOCC COO (NcMOJO'CcM'-^'-ioC^HiO t 1 - ^H S 5 S rt O CN CO CO of 02" CO TJI" Co" 'I percent a z^s^^z^z^^z^^zz^z s g r-* T I o 'o H " 1 O) So l " 3 e+-i $_, -t o o o> o 0) Jen*" 1 5" o B> cc B CN cu !al| m *H 2?*^ H 00 = H 3 "0 rt CD 3i* 1 3 cy o d - ^ Tf CO d I I a a C3 . o o5 w p O jjS.n a $ I 3 i IB O r-iC^^ i-t iO i-i "^ HH c^""^'^"* % 1 ^ ? n a s rt . ' o O !^ 1 g^-J *Td eOCOO'> H CNr-tCO^ S o CO CO 8 I I-i Hi c o >. ' "Z :riod of disabili 3fit is unknown . . ed to com pens =2 ^ G/a'S C xl S S ?.5 1 ' c c c c ^^^^ ^ WORKMEN'S COMPENSATION COMMISSION. 77 IRON AND COPPER MINES. Tables XXXIV, and XXXV, relating to accidents in the iron and copper mines, are self-explanatory and are given for the purpose of illustrating the occupations subject to injury and the comparative extent of disability, also displaying the amount of compensation re- ceived. In this regard it may be said that while the occupation of mining is considered more hazardous than the industrial occupations, the injured fare somewhat better than those disabled through accident in any other occupation, due, no doubt, to the mutual benefit associa- tions maintained for the benefit of the injured, to which funds the min- ing firms invariably contribute. TABLE XXXIV. RECORD OF ACCIDENTS MINING. Occupation . Total. Fatal. Less than two weeks. Two weeks or more. Time lost in days. Com- pensation. Bellringers . . 2 2 13 $8 00 Blacksmiths Boys Brakemen 42 32 4 1 36 21 4 6 10 335 379 27 328 00 865 5O 15 8O Cage tenders , Captains Carpenters 5 7 21 1 1 3 11 4 4 g 201 186 459 1,079 6$ 178 00 1 116 54 Chutemen Coal passers Engineers Firemen Foremen Helpers Headfeeders Laborers. Landers Machinists . . 15 1 9 8 12 31 18 328 13 22 3 o 6 1 4 7 5 16 16 191 7 12 9 5 1 7 15 2 134 6 10 372 12 129 55 152 504 129 5,804 226 405 222 80 12 00 110 71 55 00 161 94 563 48 129 00 8,387 05 200 60 1 519 83 Miners 1 411 43 784 584 27 091 67 517 54 Motormen Pickers Pipemen Plat tm en 12 67 12 g 1 o 5 45 6 5 6 22 6 3 139 1,024 210 91 148 31 1,018 14 288 91 91 00 Puffermen Railway trainmen 4 11 1 2 9 1 2 63 118 303 83 118 00 Rockmen Shaftmen 7 8 o 3 4 1 194 55 215 02 49 51 Skiptender Steel crew Surfacemen Switchmen Teamsters Timbermen 13 9 8 8 16 353 1 7 6 7 6 2 11 192 6 2 2 6 5 154 201 87 116 209 151 6 021 1,943 27 92 74 129 50 209 00 138 79 9 129 86 Trackmen Trammers 3 1 463 11 2 901 1 551 28 20 816 37 75 29 128 68 Unclassified Wallers 73 41 2 o 42 28 29 13 1,370 480 5,570 60 429 85 Watchmen o 3 4 101 101 00 Totals 4 104 71 2 409 1 624 67 953 $131 611 6l The subjoined table gives percentage of men entitled to compensation under proposed law. Men entitled to pay for period of disability Men entitled to death benefit Men injured but not entitled to compensation. . . Cases. Per cent. 1,624 71 2,409 39.5 1.6 58.9 78 EMPLOYERS' LIABILITY AND CO199AY OMX OMJ imu ssaq 9JOUI jo S5J99M OM O 1-1 O O O CCCCO CCr-iCCO CCcOCfN r-i c O O i Ci-iCCC CC CC-KNCO CCOiO(N rHrHCCC CCCCC OMj u^m ssaq '8JOUI JO SJJ99M OA\X ' ^ CXOCN C C -i M O Cr-iCC i OOCOCC C--{99AV OA\X O i OA\1 ITBqi 889^1 9JOUI rHIMOOO Tf*OrH ,H JO S5J99AV OA\JL iC3 fto H 3o-^ T32 10 .5 Illl! !lp (D'G -^H OT l^^g . 4so a< 2 pl!s O o '2 Q S' P ~" > *= m S3 C bird ft 7 Sss^S I2lal ^2-si ||2S| iipig e !l|! her anen ries. O r pe i OOOCO OOO rHlHrHCO R 80 EMPLOYERS' LIABILITY AND INDUSTRIAL ACCIDENTS. The following Tables, ]S T os. V to XV, are referred to on page 13 of the report, and display number of injured in particular localities and amount of compensation received by them. Ten counties were selected for the preparation of these tables by the commission, and many in- dustries are reported, the industrial field generally being well covered by investigators engaged by the commission. TABLE V. EMPLOYERS' REPORTS ON PARTICULAR ACCIDENTS Occupation. Effect upon emp No. injured. No. reports giving days lost. Days lost. Buffer Cabinet maker 2 6 2 1 8 1 2 1 9 5 1 1 :; 6 > 5 14 1 32 13 5 1 1 9 1 1 5 1 4 26 4 1 1 1 1 1 5 4 4 1 :< 4 2 5 7 1 20 12 1 1 1 8 1 3 1 3 20 18 5 8! *1 18 24 1 1 6 57 51 60 30 72 12 2fi 71 116* 24 315* 148* 5 10 6 89} 36 20 5 52 318* Carpenter Cupola tender Drill machines Elevator operators Filer Firemen Grinder .... Helpers Jointer operator Laborers Millwright Molders Not given Pipe work Press operators Planers Repairer Sawyers ... ... Shapers Sanders Sealer Scraper Surfacer Stockmen Teamster Turner Upholsterers Varnishers Veneer workers . . Wood machine operators Total 169 119 1 , 623 Xo. reports giving daily wage. 1 3 1 2 1 1 2 12 Wage loss. $49 50 1 85 '17 50 40 00 60 00 56 00 32 00 6 99 70 87 63 00 10 75 78 00 334 13 $880 59 * Death resulted. fThis was a single settlement. In eight cases others were connected with the injury. One injured employe sued and recovered compensation for his injury. One employe signed a release. It is re- ported that 33 from the 166 employes whose reports on injuries are here tabulated were permitted to retain the position in which the injury befell them. WORKMEN'S COMPENSATION COMMISSION. 81 NATURE OF INJURIES IN FURNITURE INDUSTRY. o 8 38 4 To the body 7 c 4 g 7 7 4 11 66 1 o 49 IN FURNITURE FACTORIES IN GRAND RAPIDS. Compensation. I ! Employes' associations. No. of cases in which payment was made. From the furniture company. From the insurance company. Total of payments. No. of cases in which payment was made. Amount unknown. Furniture company. Insurance company. 'Amount unknown. $24 75 1 17 50 1 1 1 5 00 1 "6" 15 00 1 1 1 .. . . . . . 1 1 3 3 1 1 $20 00 1 20 00 2 1 1 26 25 1 " "6" 54 00 1 2 2 1 1 30 00 1 29 75 2 80 00 5 12 20 00 2 146 50 1 9 11 9 $205 00 15 00 2 5 4 4 00 1 67 1 3 00 2 3 1 1 . . 6 00 1 1 1 . .. - 43 00 2 '0 11 00 o 2 3 3 5 00 1 15 00 o 1 1 1 20 83 1 136 50 8 4 3 t2,500 00 $614 25 14 55 31 27 $2,709 00 $131 50 8 11 82 EMPLOYERS' LIABILITY AND J . S >> a OJ'O " lifS III 1 OSO-tf^rHCOOOrHOOOCO' lOrHWcocorOcooOO}-^ CO OOO -COCO i-l rH?O H- eoc4OtocQi-4cqtcQGQiOric4*io oo i ! % o et? ^, O OlMI>^H 00-*- i-(00 1C -HTj<(NiO OIM ^ si "t 8 :888 : : :8 885??S 5 :g 88 : : -i-lCOlM -Co o >o -*t< * LI ic o t I-H I-H o -i c; co o co 01 o o r- 1> 5 a # CO Tfl CO co 1 I 0> O^^COCO OOOOO^ O^O^CCO^ iOQC't^OO CO^CCO C^CO^O GOi-HOlOrt GOCOCQCGO iO-^r-1 Ol OlrHlOCOO COMt-CiiO 'Ct^iCOl'O O4 O T t i t GO T ( i{ CO c Q, 1 tr insurance. S 10 ^ : c 8 O OOO i-i-^OOO OOO O -*OO OOO>CCD OO^O CO a g S 1 r- COCO! OTt- #_I,_|^HO1 CO^H ^HrHCOO^CO- CO *Or 1- If oocco ooooc ooooo ooooo ooocc o8coo I 8 11 OOCCC OOOCO OOOOO CCOOO 00000 00)000 1 - M 04 i g c o Hospital. oocoo ooooo oocoo ooooo 08000 00008 O CO -t "H -f CO o o CO ompensat i occoc ooooo 08080 ooooo ocooS 00880 S S & Doctor. o8oSo oo 'oo cccoo ooSoo oooco oooco -H O -H CO T-l CO O TfH S ^ First aid. occoo 0800 ccooo ccc8o 00800 oo88S co co '--i co 10 l " oi ^ 8 CO S 1 3 || OrHOOiO CCOCOOO rf ^ C i C COIOIO^H C^H01C-( O ^ * t^ * o t-H c 1 COOCC CCOCO COCOO OCOOO 00000 O-iOOO - 1 .' '. '. '. '. '.'.'.'.'. .'.'..'. '. '. O> .' - . . . . . ' '. '. '. ' : bc : ..... .-. .S -- 03 > c c i ll ;. fill ; ijjl ; iiij-g -gj i a j-i- il 3 g WORKMEN'S COMPENSATION COMMISSION. 85 Cost to employer. till C5 1^ rH O CO OCOOOOO TJ< O O O >O iO t^ 00 rH-tf CNrHrH COCO ^ 00 ^ rH O rHCOO5OO5 Tj< rH CO CO GO rH 05 i % ': Paid for insurance. !> iO O O O O O GO iO O O O O O O 'O Ol>OCO iCOOOOtM 00 CN i 1 o 8 :88 : :::::: : : : : :|| j j j H-: : : : i : g : : :::::: : : : : o CO ' S o (M M ^ .2 i & : : : : :::::: : : : : 8 o I .... : : : : :::::: : : : : : . . . .33 11 p~ 8 CO 9 -CO : : : : : :::::: : : : :^ : 1 8 oo 8 : : : :::::: :::::: iO -CO * _o iCO *O -O O 00 - COrH CO rH M CN I Il 03 fmi ^ J o N CO rH IN Tj< ? rH M g 1 I "cc 3 d q "3 g ifx-xl sitgli Slltll 3^00o e3 H 0^,2 ^33333 .2-22 og +* o en >_ *8 I 8 ii I! C a Illl 86 EMPLOYERS' LIABILITY AND o iOCO -O OrCO CD O- O T*l i-l .-1 i-l rH o N * i Tf< (N W -CO "*. ,0 1-1 A n & 1 " bi ogo jg goo s go s 9 ,-*, ~~, * O O iC f 2 J 8& S 8 lc 1 OCOCO -i-l O N 00 M lOCO QpCCi -t- ^1 (N 1 1 lO -C^C^ -OCD^* 0> 1 g : : i^^ : : 1 1 2 8 88 :88 : :^ ^ : : 3 '3 1 3 iOC5 -OO Ml- ' COO -OOiO -CO CO i OH g U~ ': : : : : i w : : : : : : 8 : : CO tc CO !- -f .' '. '. ico 1 -o : : : ic -o s 1 p iO O s 'o c o c 3 : : : : : : : : : ; -, : o> 1- CO (N 00 s .2 s JD ; '& ' '* 3 c ; :-: 8 i :1 a : ; ; ; : fi : ;1 * . 1 i > ... 0> . . 0> . . . 9 -u_ c 1 j | . -.2 -^ .2 1 *i i : : : ^.SP ^.2 -5 5 3 ' * ^ C ^ * "^ *~* .^ T 1 . ^'O * "rrt ^ 'w ( h H : : : ? r : .' ^ ^ ^ 'o * ' ** "tft T^ * 2 : :^'a| :S^ ; ; 2 ;^"-^ ;* .c |g 1 fill! dl 1 i o_o_oc T3 2 e * 13 I he aver H WORKMEN'S COMPENSATION COMMISSION. 87 S 1 O O O i-H ^ GO O O O I s * O O ^i "^ O CO 00 ls O O O sO O O OCOOCOOOOO OOCOOOO OiOOOQOr-- O C^ *C GO O O O 10 i n ft CO CO r-l I> lO i-H i-H i-i i-< J>(N C^ I a- 5 I 00 *mpensation 11 -0 00 : 8 O 1 '3 8 '88 8 : i 88 o o 4 \ * O o CO ; ; ; ; ' ; ; ; t | ... . j C 1 ! 3 i 2 : : : : : : : c _ . . . . \\:\\ '.':' c 03 S : : : : : : : QJ >> ; ; a) ; 3 . s 03 'S O *""* d ff ^ I | g | -s -+3 O - U II ^ ti - m 3 O O *"* j ill 1 5 s S-g 1 ft d * o o 3 a- is -5 ^^ bX)0 13 d II EMPLOYERS' LIABILITY AND TABLE XII. EMPLOYERS' GENERAL Industry and occupation. Non-fatal injuries. Disability. Compen Tem- porary. Per- manent. Employer. Manufacturer fruit packages and boxes: Machinist . 1 1 1 2 1 1 1 4 1 1 1 1 1 1 Sawyer 1 i Manufacturer buggies: Spindle carver Manufacturer baskets: Sawyer . . .... 2 i i i $54 00 18 00 Printer Peeler Machinist 10 00 Manufacturer pianos: Machinist ... . 3 1 1 1 1 Watchman Foreman 30 00 Fireman Polisher . Total . 16 9 7 $112 00 There were no fatal accidents in this locality. The investigator who secured these reports was careful to obtain information upon the guarding of the machines. It is to be noticed that every accident, caused by machinery, was upon an unguarded machine. No releases were signed and no settlements were made. TABLE XIII. EMPLOYERS' GENERAL Industries reporting. Injuries. Compensation. Fatal. Non-fatal. First aid. Doctor. Wages. Other. Beet sugar manufacturer Leather manufacturer Match manufacturer Sheet metal manufacturer.. . . Machinery manufacturer Knitting mill 1 1 1 1 1 1 13 7 3 25 6 30 38 13 14 70 16 4 $3 00 60 00 10 00 101 00 25 00 130 25 80 45 6 50 88 75 290 00 10 50 $134 00 105 00 179 00 140 25 38 00 114 25 . . . $15 30 300 00 345 56 526 45 33 00 $33 00 25 16 175 00 Robe manufacturer Furniture manufacturer Foundaries Coal mining. . . Public utilities Boiler makers Wash boards Plate glass Miscellaneous manufacturers.. Total 6 239 $745 45 $710 50 $1,220 31 $249 00 Deducting the amounts spent by the beet sugar manufacturer, who carried no insurance, from the total of fiirst aid, doctor, other, settle- ments and damages, totals, which difference was subtracted from the total paid for insurance, we find that the employers in this table paid the insurance companies |7,08i.l5 more than was spent upon injured WORKMEN'S COMPENSATION COMMISSION. REPORTS FOR VAN BUREN COUNTY. 89 sation. Days lost. Machine guarded. Nationality. Now employed. Insurance company. Medical. Yes. No. Native. Foreign. $10 00 10 00 2 00 20 00 6 00 10 00 10 00 27 00 5 00 5 00 3 00 5 00 19 60 6 52 12 30 13 54 6 12 13 17 1 1 1 1 1 1 1 2 "i i $10 00 1 2 1 1 1 3 i 1 2 1 1 1 4 1 1 1 1 $10 00 $115 00 292 10 14 11 None of the workmen injured in this locality were foreigners, and an unusual number of them were retained in the positions in which the accidents befell them. In none of these accidents was another person connected with the injury. REPORTS FROM SAGINAW. Amount pai< I in. Pair! fnr "Rfltp rf Cost of A.vcrCr-iiCCOOO i-iCC t^OO GOGC-^rH COOi-lCOO C^l I-H CD i-l i-H i-l 00 !-! CO M id i II 3 Employer. iO- .. -O- -O-OOO- (M -0 -0 -OOTf rH . -O O -OCO-* * -IO rH -,-1 l> 1C o o 3 & II TH -OGOrH rJO -C5MM iiOCliMTO fOtocC^OO (M OOO i-l 1- CD i-l O CO 1> C C-l -H CO i-H . ^H ,H ic C-l H C 1C s 71 Is I It 2 3 s I-H i-( CO Oi M 1C C C-l ^1 -H fj rH , J < 1 : i : : : : :::::: 1 3 ( ( i r. c 5 -"2 : : : ; ; ; ; ; ; ; ; g ; ; ic* ' : :s 1 :| ^i Illll Illil ism JEfcobc S^Sos" z: ^- brbj '!ZSS is, 88 gg 88 : : :88 : :g -'88 :88 : 8 : CO (M O OOr-IC ox If 00 oos O i i-^OOO 1 -nO' H OO . Cs os cs Os Os Cs os Os OS os Os OrHrHO O O -H O O Ci Cs O O O C^ O> 111!! S |T3 larSjl C C C .^ = .s5 ?!ss & ^lis hand an soned w horse, t rom lifti ff load rate d poi away ined ped La Bl Ru Str c=ac -2? . IliiS ! II s if !- 3 2 C g ^' >JD P *iM ' c .be ' . "- < es o> 2 S "2 ^ S^ iss^l I' ^.PM*J ^ = S-ses-s Illli tfSg^.g' S : r^ lia S -g'Cs I t %* -si's :^ ^ 8*3 >, 11 PI 12 :& Ial2 5iS"l I l^g!| li^&s 1 Hill M :8 Loss of finger, corn binder. . Chain slipped and broke ankle. Fell off wagon and broke collar Crushed between engine and se O >: : . O >> . - . . c3 . *" o ."O . 05 "O T3 . 05 O 15 . . .^H 05 05 '5'a-S : -? s jga5l asJSi .. 1^5 S *W|2 S COOQ^ilMM COCO--lOS o-o -ag 53 | S I |S o>> s 050503005 003050503 OOOOOO 00000^ si s OS . . . o . 05 05 .-, g g OOHfeO OHOOO O O f- t-i O H g 1 ? o m jfi !!!!! !!!!.' !!!!.'! 2"r"~" 96 EMPLOYERS' LIABILITY AND sill flf ".*.* ' 0) 0) ' ' ' G C ' ! o o ; ; :88 '050* OSLC gg o o o' o' O t- (H O : : : I oS mil mil C G G G G CCOCO mil! i'fiiil owoooo 1 C B i i '"'rH CO If} 1C r-l CO tfr Q.) hC tuDc? ^ cor- CMO rHrHrH(N(M(N ooo -ooooooooooooooooooooooooo 8 i d Others. fl OOOOOOOOOOOOOOOOOOOOOOOOOOiOOOOOOOOO 8 s ation and ai Insurance company. 00000000000000000000000000000 -00000 1 OJ ft 1 0) 6 O O O O O O O O O O O O O O O O O O 10 O O O O O O O O O O O O O O O 8 8 "ft 11 ?l '.'.'.'.. . o O o -o o oo ooo oooooo 1 !(M '. '. '. '. '. '.'.'.'.'.'. ,_, 10 . -CM W COlOlOCO'*r-lOt- rH O3 CO 1C 10 CO CO CO ^ ,_( -rHOi r-( TH 1-lrH CO rH 3 . Hf Q0 W . 11 ScOOrH^lO '. iS r-l CO S CO CO rH rH rH CO CO r-l rH rH CO CO t^ O5 r-t CO - o ... ... " OiO -O CO 04 -01 Ol > > '. > '. '. '. s*- ^^ 5 2*3 'S es !- 03 ^^ U. : *, ag I 1 tOCO T-H IO T-H T-H T-H T-H IO s OJ^- 1 ^ ^ 1 expense. 88S8S S8888 888 : : :S : : 888 T-HT-HINO i-H T-H 10 t> I !l 5*9 0) 03 '.'.'.'.'. 100 O -O '.'.'.'. '.'.'. l>0 -.. -0 g ss 0>0iOO >O O- -O O -coi^ -*ooi*o T-HIOO t ' <* 10 ^H 00 i 03 -^ Sj^fl I 1 ! i- ^S . "fli Ag ** M-^^fl >> 21 |a"8 s ; '. '.'.'.'.'.'.'. '.'.'.'.'. ~. '. s;|g CO 4- SH <3 OJ > 1 II " 11% fills -i 11 ^'raS * $ i:a e o^^-S l c ^60^ r .... S?a^ c f 1 : : : : : : : : : : : : : : : : : .g 1*13 I 5; ; ..... .JD.S S o> o ^ H{ & . . . ' ' ^ ' ^ ' O' 1 "" o tf ^-r c a a** j 6 } JljjJl pi !||i iji ||| oJinO^^O c3 - (U *-t O C^'Llw^.d''^ --H-2 ^> c^ rr* c3 c3 . o3 ^OH^-^M OPQiHOH MHSWblH PnMHi-H SOt-5^-g 1 One lineman There was by contributio In three of WORKMEN'S COMPENSATION COMMISSION. 103 |b : ! : : 5 c?^ o d o 1 o ' '.*~ ' ' ' g ob g^ S i d . it O O G^ Ci i i Tf< l>- 00 CO -^ i-HDO g CO ot specified e number was 13 da i f injured. O (N (N "5 O CO 05 y, amount n in aggregal le per man pfo a p,S a^ op, " H ... a> aj 4 So d d S cs.u a o> a *l |S a .go 3 5 S t> t^jrt o> ej i rf S O 11 Ha ft >5 .. CJ i a 5 ^ rt! d ^ d 1 *Other aid tEmergenc Forty-nine $13.01, whil 104 EMPLOYERS' LIABILITY AND TABLE XLIII. REPORT OF MISCELLANEOUS Occupation. Aggregate number injured. Fatal. Days lost. Release signed. Nationality. Native. Foreign. Billiard cushion maker 1 1 1 4 1 9 1 3 1 1 52 52 28 78 1 1 2 1 6 2 1 1 Cable splicer . . 1 Electric car motorman Laborer 2 Lineman 1 Machinist 72 160 33 13 52 2 2 1 1 Millwright Sawyer Teamster Varnish rubber Total 23 1 540 2 7 15 *Amount not given, t Wages not given. JSame man injured. WORKMEN'S COMPENSATION COMMISSION. INDUSTRIES FOR MUSKEGON. 105 Disability. Tem- porary. Per- manent. Con- tinued employ- ment. Guarded machine. Yes. No. Compensation. Employer. Insurance company. Fellow work- men. Settle- ments. > a J t J 1 Hi ..- .'' 3 : 1 I s 1 1 s 11 s , paid $57.00. by scaffold broken; pa ll III . > $159 oldi 0.00. str 00. han J Mach $2, *Sawy $2,350 106 EMPLOYERS' LIABILITY AND TABLE XLIV. REPORTS ON RESULT TO Days lost. Daily wage. Wage loss. Expenses of injury. Compensation and aid. Employer. Others. Wages. Medical expenses. Other. Insurance company. Work- men's or employe's Ass'ns. 1 12 305 7 15 5 54 72 10 6 3 8 396 10 6 10 12 90 3* 196 .156 24 72 36 6 72 270 54 48 $3 00 1 00 2 00 2 75 1 65 3 20 3 50 3 50 4 60 $3 00 12 00 610 00 19 25 24 75 16 00 189 00 252 00 46 00 "$266'66' 3 00 10 00 "6" ' $18 00 7 50 $10 00 $80 00 $9 80 "eso'oo" 60 25 7 50 "6" 250 00 $40 00 7 50 55 00 17 00 26 00 750 00 54 00 42 00 6 00 1 50 30 00 100 00 50 00 50 00 2 25 3 50 2 00 3 20 3 20 1 50 2 00 1 90 1 95 1 85 5 00 3 00 1 90 1 50 4 00 1 70 2 05 2 00 1 90 6 75 28 00 792 00 32 00 19 20 15 00 24 00 171 00 6 83 362 60 780 00 72 00 136 80 54 00 24 00 122 40 553 50 108 00 91 20 75 00 24 75 16 00 4 45 15 00 150 00 90 00 "s'oo" 25 00 1.959J $4,571 28 $593 20 $897 50 $47 50 $280 00 $1,002 55 $119 50 1 Could not do full work for eight weeks. 2 Will never be able to work again. Loans made by fellow workers. Aid from relief association. 3 The company's doctor. dressed the wounded hand once each day for three months. Could not do full work for two weeks after his return to work. 4 Got nothing from relief association to which he belonged. 5 Got nothing from relief association to which he belonged. Cases reported in the seventh and eighth lines from the top are two separate injuries at different times to the same person, though in the same employment. B This was a settlement of both claims. 6 Received aid from poor commission, amount not given. 7 Was offered $500.00 settlement. 8 Wrist stiff and weak permanently. 9 Church contributed aid. WORKMEN'S COMPENSATION COMMISSION. EMPLOYES OF DETROIT COMPANIES. 107 Compensation and aid. Suit brought. Release signed. Family. Others. Single. Married. No. in family. Effect upon. Religious or fraternal Ass'ns. Relatives. $155 00 1 1 "i" 3 2 1 2 Wife went to work. 3 4 5 6 7 8 9 Wife went to work. 10 Two children went to work. 11 12 Widow and eldest girl went to work. 13 Wife went to work. 14 Eldest daughter supports family. 15 16 Two children left school. 1 1 1 1 1 1 1 i i i i . . i i i i "i" 2 3 3 ' '4' "2" 10 2 2 5 4 8 4 9 5 "3" 1 1 1 1 $75 00 75 00 24 00 400 00 100 00 1 1 1 "i" i' i i i i i i 9 6 7 6 4 $174 00 $655 00 4 4 ~21 103 10 Lost his hand. 11 The employer paid all expenses. 12 Employers paid funeral expenses only. Received aid from associated charities and poor com- mission. Suit is now pending. Life insurance policy of $1,000.00 expired just one week before the injury occurred, and because the injured man had been out of work for some time and his wife had not been in good health, he could not renew it. 13 Aid from poor commission. The employer of this injured man offered a $300.00 settlement, but it was refused. 14 This man will never be able to work again. 15 Could not do full work for one week after he returned. This man moved his family into a house where the rent was cheaper. He was permanently injured. 16 Could not do full work for four weeks after his return. 108 EMPLOYERS' LIABILITY AND TABLE XLV EMPLOYERS' GENERAL REPORTS Industry. Injured. First aid. Medical. Hospital. Fatal. Non-fatal. Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . 78 35 5 $111 44 50 00 $200 00 $25 00 1 30 57 78 4 1,628 00 200 00 68 00 Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers. 35 408 25 11 25 Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers 2 212 Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . . Automobiles and allied manufacturers.. . . Bakers 1,202 525 17 3 1,000 00 1,113 33 200 00 34 50 Brass manufacturers 15 00 9 00 75 00 Brass manufacturers Brass manufacturers Brick 12 35 1 Breweries ... Breweries Building material 20 00 Chemicals Chemicals Chemicals Chemicals 495 10 1 1 16 1 20 6 1 2 3 5 3 10 1 2 1 47 2 21 00 h 10 00 2,597 66 Clothing.. . Clothing. Clothing... Cigars Contractors Contractors Furniture Furniture 50 65 60 00 22 00 "6" 147 82 604 00 34 50 46 00 30 00 Furniture . Furniture Furniture.. . . . . Furniture Furniture Furniture Jewelery. etc. Jewelerv etc Lumber 75 00 83 00 10 00 5 00 741 00 Leathers Leathers leathers Leathers . Laundry 37 00 Laundry Laundry Miscellaneous: Adding machines . . Boilers WORKMEN'S COMPENSATION COMMISSION. FROM DETROIT, JANUARY 1, 1910 JULY 1, 1911. 109. Wages. Settle- ments. Others. Paid for insurance. Rate of insurance. Average daily wage. Average No. of employes. Total wages paid. $200 00 $50 00 $50 00 $285 30 350 00 36 25 638 09 $0.150 .180 .250 .373 $1 06 2 53 2 97 2 38 1 23 1 49 483 300 18 300 60 375 $132,102 30 190,224 99 13,379 20 179,000 00 18,500 00 170 841 00 2 32 1 165 824 988 61 2,963 66 .235 1 800 1 261*132 55 324 00 550 00 100 00 1,288 52 396 00 603 34 .360 .283 .200 1 39 1 66 1 88 2 07 600 275 195 500 355,000 00 140,000 00 112,133 41 315 815 75 800 225*000 00 135 00 2 085 00 1,904 83 .26 1 380 822 178 93 1,165 824 988 61 6 098 03 .161 2 34 5 447 3 837 179 76 5 202 64 2 03 433 264 305 76 2,868 10 .23 1 38 3 000 1 247 000 00 1,646 03 4,531 61 2,424 50 00 405 58 .20 850 37 50 25 o 1 800 00 125 00 o 2 46 10 225 7,500 00 100 00 13 00 247 15 288 86 .156 .30 1 52 2 17 340 15 200 157,678 10 9,949 57 153 15 .50 60 30 11 787 08 24 10 000 00 o o 2 48 8 2 135 6,052 00 3,065 74 63 00 100 00 50 00 7,326 00 527 31 130 62 25 00 194 42 2,853 38 3 900 00 .155 .080 .111 1.050 .754 .25 2 29 1 21 85 1 22 1 63 1 84 3 10 1,400 900 700 60 600 28 400 25 979,596 45 331,877 97 181,475 57 22,460 44 300,000 00 15,689 60 378,319 93 15 899 01 906 42 36 00 65 00 211 60 115 00 70 00 30 00 50 00 1,300 00 148 75 675 19 480 34 27 65 301 60 216 62 150 00 49 96 51 03 251 00 54 75 111 00 .150 .230 .123 .200 .333 1.000 .350 .253 .183 .153 1 62 1 34 2.90 1 76 2 84 3 28 1 31 1 32 2 00 1 88 1 80 1 92 1 35 646 26 275 4 125 50 50 124 18 65 180 50 988 175 320,229 33 12,037 65 243,297 02 2,150 00 108,309 41 50,000 00 20,000 00 49,961 35 11,000 00 37,251 57 99,032 00 29,342 14 408,626 89 75,000 00 20 00 371 55 175 00 1,150 00 11 00 52 00 150 45 176 40 971 17 109 00 .346 .270 .350 .090 .600 82 1 11 1 65 2 50 2 15 60 225 100 1,362 32 15,000 00 78,443 56 50,400 00 1,039,538 59 21,000 00 -110 EMPLOYERS' LIABILITY AND TABLE OF EMPLOYERS' GENERAL Industry. Injured. First aid. Medical. Hospital. Fatal. Non-fatal. Bridge material Color manufacturers 1 9 1 1 1 12 33 5 2 35 2 347 4 3 644 3 1 2 18 57 45 190 18 2 4 $11 15 116 00 4 00 246 75 786 24 252 14 $305 00 198 00 $49 00 38 00 Cap screws etc. Gray iron foundry Hoisting machinery Implement machinery Light castings Machine knives Marine construction etc Milk cans etc 42 00 25 00 973 17 6 00 30 00 413 32 1,096 50 28 57 340 00 3,427 80 "78'66 50 00 Milling . ... Machinist . Newspaper Picture frames Railroad cars and parts Refrigerators and machinery Sheet metal Steel fireproofing Structural steel Tin cans Paint etc Paint etc Public utilities: Gas company Electricity .... Telephone companv Wire 30 00 Wire Wire Paper Can manufacturers Stove manufacturers 1 1 1 25 10 1 2 197 12 1 12 8 18 190 66 00 83 00 35 00 102 66 11 02 413 32 800 44 22 65 10 00 Rubber goods 60 00 10 00 252 14 Shoe manufacturers . Caskets Wood and iron working machinery Radiator manufacturers Car wheel manufacturers Saw manufacturers 300 00 Stove manufacturers Harness manufacturers Wire Telephone Electricity Steam heating Total 19 4,959 $4,992 83 $7,054 01 $8,409 43 WORKMEN'S COMPENSATION COMMISSION. REPORTS FROM DETROIT. CONCLUDED. Ill Wages. Settle- ments. Others. Paid for insurance. . Rate of insurance. Average daily wage. Average No. of employes. Total wages paid. $158 00 $202 47 $30 90 $27 45 387 00 236 18 34 58 664 87 40 00 3,957 10 738 00 250 97 10,704 86 165 50 114 57 40 00 15 00 75 00 184 61 200 00 2,177 97 4.968 34 .210 .167 .230 .227 .220 .330 .516 .572 .200 .550 .414 .846 .330 .350 $1 95 2 43 1 85 2 69 1 00 1 87 2 16 2 27 "i'78' 2 00 2 23 3 65 1 82 1 72 1 84 1 93 2 27 1 75 259 13 410 130 30 7 457 18 1,187 233 60 110 120 9 3,714 80 23 18 6 $154,170 81 9,671 25 231,604 45 107,038 56 15,247 66 4,000 00 302,214 00 12,498 12 843,459 81 127,126 00 37,540 00 75,000 00 133,655 00 5,000 00 1,946,337 62 45,000 00 13,544 00 12,498 12 3,200 00 15,000 00 122,076 12 77,248 09 288,927 90 349,575 75 486.934 66 1,780,611 00 24,000 00 5,811 55 1,800 00 9,800 00 122,076 12 708,109 71 2,850 00 1,946,337 62 20,000 00 164,937 73 782,889 00 51 ,567 52 26,866 67 65,000 00 13,000 00 23,696 42 1,780,611 00 486,934 66 4,899 69 73 00 16 00 829 74 1,037 08 846 10 923 35 210 30 "6" 4,293 80 .238 2 24 1 81 2 10 2 30 2 36 1 53 2 24 2 38 1 98 1 60 375 140 450 497 675 3,878 35 8 3 20 375 1,088 5 988 50 250 1,050 85 50 125 24 45 3,878 675 5 .623 .100 964 60 46 10 25 00 .192 .160 103 35 245 58 181 02 983 42 5 06 2,152 00 727 88 88 66 325 00 25 00 94 77 4,869 34 25 00 .138 2 16 70 00 36 00 794 68 846 10 3,427 80 1,300 00 72 50 3,500 00 1,037 08 .28 .115 .33 .50 .25 .40 1.00 .05 $13,747 81 $16,351 73 $14,268 19 $73,431 54 55,551 $29,473,042 71 EMPLOYERS' LIABILITY AND OTJ H I CO CO O 00 <** |> CO * 00 cocot^ioic-^^co O5 "tf CO CO l O i-l cococNoococNO^ * t-lO l> CNrH iH rH 1C CO l> Tt< CO Ci CO CO COO ,H s- III 2 "* M ^ia rHOOOOOOO OOOOOrHrHO OOl>OrHOOO rHOOWOCOOO OOOOrHrFOO rH Hilt o ^ P bc.2 d 00000000 OOOOOOOO OOrHOOOOO OOOCOrHCNOO OCNOOrHrHOO ^1 1& Q"O M wQ O A 0000000 oooooooo oooooooo rHOOrHOOOO OOOOi-iOOO a 1 oooooooo OOrHOOOOO OOOrHOOOO OOOOOiOOO OrHOOOOOO M QJ ^ S.g O -t-^^tj 13 1 OO-^OrHOMrH OOOOOrHOO TH rH -^ rH rH O O O K3i-iOCOrHOOOO OCOCMOCMOOO !l i! rH (N r-4 i-l O O C (-5 O COOOlO^COrH^ rH lO (N CO rH O CO CO CO T}< rH CO rH rH b- CM 00 OJ r-l rH tHOO OrHrH I-l lOt~ rH CO I 11 COTHOOOOOO 1-tOCOrHrHOOr-l 0 N CM rH rH U5 TH 5. Describe accident fully 6. Had any other workman, foreman or superintendent any connection therewith 7. Loss of time to Employe 8. Payments to Employe 1 . From relief fund ; amount ? 2. For settlement; amount? Was release signed? 3. Did you or Insurance Company make settlement? 4. If medical expense or funeral expense paid separate from other figures? B. After Suit. 1. Amount paid 2. Date paid 3. Was judgment recovered? 4. Did you or Insurance Co. make settlement? 5. Expense of litigation to you , C. Did you contribute with Insurance Company in settlement? If so, how much? 9. Is workman now employed by you and in what capacity and at what wage 10. Has workman or family been pensioned in any way by you 11 . If any further cost to you, please give particulars (Sign here) The following form was for the use of the investigators exclusively. The commission printed 5,000 of these blanks: NATURE OF ACCIDENT. Form B. No 1 . Name and Address of person injured k 2. Nativity 3. Whether or not a citizen 4. Nature of employe's work 5. Employer's name at time of accident 6. Place of accident 7. Date and time of day 8. Had any other workman, foreman or superintendent any connection therewith; if so, state fully. . 9. If on machinery, describe machine. Was it guarded?. 10. Describe cause of accident fully (Sign here) 124 EMPLOYERS' LIABILITY AND Form "G," as follows, was used for information secured from the employe, 5,000 of them being furnished the commission: RESULT TO EMPLOYE. Form C. 1. Name and address of person injured 2. Date and time of accident 3. Describe injury fully 4. Any permanent injury, describe fully 5. Condition of Family at Time of Accident Members of Family Sex Age Weekly Contribution to Injured Person Earnings family income ".... $ $ $ $ $ S ' $ $ 6. Expenses on account of Accident c. Settlement of Claim for Damages: a. Medical $ b. Funeral S Without suit $ c. Other (specify) Out of court after suit $ Recovered in Court S Fee of lawyer or agent $ 7. Wage Loss Settlement by employer or Insurance a. Wages at time of accident Q O b. No. of weeks totally unable to work.. Time' from 'filing of claim or institution c. No. of weeks after return to work unable of suit to final settlement. . to do same or as much work as before d. Other Aid: accident ... _ Public $ Private Society $ 8. Insurance, Compensation or Aid Received Relatives $ a. Insurance or Benefits from: Fellow Workmen $ Insurance Co. $ Church $ Trade Union $ Other (specify). . . . Relief Association $ Fraternal Order 8 9. Effect of Accident on Family: Other (specify) $ a. Did wife go to work? b. Did children leave school to go to work? (age of each) b. Compensation from Employer: c. Was expenditure for house rent reduced? Medical expenses $ Funeral expenses $ Name and address of Informant Wages $ Other (specify) $ Investigator's initials Release signed?.. . ' Date WORKMEN'S COMPENSATION COMMISSION. 125 Of the following form 10,000 were printed and distributed throughout the State: EMPLOYER'S GENERAL REPORT. Form D. 1. Firm 2. Business ' 3. Average number of shop employes in 1910 4 . Total wages paid in 1910, $ EXPENSES ON ACCOUNT OP ACCIDENTS TO EMPLOYES IN 1910. 5. Amount paid for insurance: Employers' liability insurance $ Workman's collective Other (specify) Total... Rate of Insurance Premium ? 6. Amount contributed to Employes' Benefit Association, $ 7. Cost of Claims or Suits: Amount paid in settlements $. Amount paid in damages Cost of legal department or counsel, charged to accidents Other (specify) Total... 8. Aid to Injured Employes: Medical: First aid $ . Doctor Hospital Other (specify) Compensation: Wages , $. Pensions Other (Specify) 9. Funeral expenses Other (specify) $ . Total "$7 10. Total number of accidents Fatal Non fatal... $. (Name of firm here) This schedule was mailed to all members of the Michigan Manufac- turers* Association by the secretary of that organization, and also to all members of the Employers' Association of Detroit by its secretary. Em- ployers generally not connected with the above organizations were reached through the mail from the office of the commission and per- sonally by the investigators. 126 EMPLOYERS' LIABILITY AND Form E, for use in the agricultural districts, was used in three coun- ties, Van Buren, Ionia and Oakland. The result of the investigation in this field is given on pp. 94-96 of report. AGRICULTURAL ACCIDENTS. Form E. 1. Farmer's Name 2. Name and Address of person injured 3 . Place of accident 4. Date and time 5. Describe accident fully 9. 10. Had any other workman any connection therewith Loss of time Payment to workman A. For settlement amount and particulars B. If medical expense or funeral expense paid separate from the other figures. Is workman now employed by you, and at what wage?. Give any other particulars which can be secured (Investigator) Form "F" was used by the investigators in their search of the court records : LITIGATION. Form F. 1 . Name and Address person injured 2. Name of Employer 3 . Nature of Industry 4. Location of Factory 5. Date of Accident 6. Nature of Accident 7. Date of Commencement of Suit 8. In what Court 9. No. of file 10. Name of defendant 11 . Trial began 22. Date of remittitur from Supreme Court 12. Trial ended 23. Judgment of Supreme Court 13. Judgment for 24. Attorneys: 14. Damages allowed a. For plaintiff b . For defendant 15. Court costs 25. Cost to injured workman: 16. Attorney's fees a. Medical and other expenses incurred by reason of the accident 17. Was suit settled out of court? b. Wages at time of injury 18. Amount paid c. Time lost 19. To whom d. Did he lose position e. Was earning power permanently im- paired 20. Estimated cost of maintaining Court per f . Is he employed at present day 21. Date of return to^Supreme Court g- What are his present wages WORKMEN'S COMPENSATION COMMISSION. 127 -OPINIONS OF MEMBERS OF THE BAB. To secure opinions from members of the bar throughout the State, the following circular form was used and mailed to all members of the Bar Association and lawyers generally. The replies were numerous and in the limited scope of this report it is impossible to print them in detail : Dear Sir. It has probably come to your knowledge that, by the last Legislature, this Commission was ap- pointed to inquire and report in regard to the system of Employers' Liability n force in this State and to recommend such a law as from its investigations it should determine better suited to Michigan industrial conditions. It appears to the Commission that, for the purposes of their inquiry, it is im- portant that they should have before them the views of members of the bar whose experience in litiga- tion in cases arising out of industrial accidents has brought this subject especially to their attention. They believe that you must have information as to the workings of the present legal system relative to industrial accidents and that you can undoubtedly make suggestions which will be of value. The Commission therefore particularly requests that you will answer in writing the attached list of ques- tions. In addition it will be glad to receive from you your observations as to any other matter within the scope of the inquiry. It is requested that your reply be received at as early a date as possible. Yours truly, HAL H. SMITH, Chairman. 1. What is your opinion as to the fairness of the law in this State with regard to liability of em- ployers for accident to their employes? What, if any, are your suggestions as to its amendment of the law. 2. What is your opinion of the operation and adequacy of the Labor Law of this State in relation to the prevention of accidents, and what, if any, are your suggestions as to the amendment in that re- gard? 3. Is the court and the jury system for fixing responsibility for industrial accidents now existing in the State satisfactory in its operation? If you answer no, state why. 4. Are you in favor of a system under which all accidents to employes shall be compensated for without regard to negligence, but under which the compensation paid shall be limited in amount? Please state reasons for your answer. 5. Or are you in favor of modifying or enlarging the present liability of the employer without chang- ing the present system? 6. If you are in favor of such a plan for compensation, as described in question four, are you of the opinion that the expense should be borne by the employer or shared between the employer and em- ploye? 7. What is your opinion as to the advisability of the State bearing a portion or all of this expense, and in turn collecting same from the public by taxation? 8. What is your experience as to the value of relief associations of employes? 9. What is your opinion as to the advisability of compelling, if possible, each industry to insure against its own accidents? 10 What is your experience as to the merits of the present system of liability insurance? 11. What do you think of the practicability or efficiency of a law limiting contingent fees in accident cases or allowing the court to fix such fees. 128 EMPLOYERS' LIABILITY AND ATTORNEYS RESPONDING. R. L. Crane, Saginaw, Mich. F. W. Newton, Saginaw, Mich. W. E. Brown, LapeerJ Mich. W. R. Taylor (Senator 6th District), Kalamazoo, Mich. W. A. Burritt, Hancock, Mich. O. A. Withey, Reed City, Mich. Geo. O. Kinsman, Oxford, Mich. Jerome E. Turner, Muskegon, Mich. H. A. McNitt, Grand Rapids, Mich. James A. Lombard, Grand Rapids, Mich. E. J. Dennison, Marshall, Mich. Charles M. Woodruff, Detroit, Mich. Alex. Sutherland, Muskegon, Mich. W. L. Mason, L'Anse, Mich. L. E. Stewart, Battle Creek, Mich. H. A. Lockwood, Detroit, Mich. C. D. Hancliette, Hancock, Mich. Henry M. Butzel, Detroit, Mich. John C. Graham, Port Huron, Mich. W. A. Collins, Bay City, Mich. F. W. Riblet, Muskegon, Mich. Edward Cahill, Lansing, Mich. Wilson, Wilson & Rice, Grand Rapids, Mich. Cleland & Heald, Grand Rapids, Mich. D. H. Ball, Marquette, Mich. P. H. O'Briwn, Laurium, Mich. Mark Norris, Grand Rapids, Mich. F. A. Stace, Grand Rapids, Mich. W. T. Bope, Bad Axe, Mich. W. S. Hill, Marquette, Mich. Edw. S. dark, Bay City, Mich. F. A. Bell, Ishpeming, Mich. Dorr Kuizema, Grand Rapids, Mich. Charles E. Ward, Grand Rapids, Mich. Robert P. Hudson, Sault Ste. Marie, Mich. Dallas Boudeman, Kalamazoo, Mich. F. W. Schell, Port Huron, Mich. James E. Sullivan, Muskegon, Mich. F. L. Keating. A. W. Byers. James E. Sullivan, Muskegon, Mich. Wm. J. Landman, Grand Rapids, Mich. W. S. Tucker, Grand Rapids, Mich. Albert T. Streeter, Houghton, Mich. Clifford M. Crandall, Port Huron, Mich. Frank E. Jenkins, Oxford, Mich. Frederick W. Newton, Saginaw, Mich. WORKMEN'S COMPENSATION COMMISSION. 129 OPINIONS OF EMPLOYERS. To a large number of the leading employers throughout Michigan the subjoined set of questions was sent and a list of those responding will be found on the pages following: Detroit, Mich., August 1st, 1911. Dear Sir: It has probably come to your knowledge that by the last Legislature this Commission was appointed to inquire and report in regard to the system of Employers' Liability in force in this State, and to rec- ommend such a law as from its investigation it should determine better suited to Michigan industrial conditions. It appears to the Commission that for the purposes of their inquiry it is important that they should have before them the views of representative employers of labor. They believe that you must have experience or information as to the workings of the present legal system relative to indus- trial accidents and that you can undoubtedly make suggestions which will be of value. The Com- mission particularly requests that you will make answers in writing to the attached list of questions, and in addition will be glad to receive from you your observations as to any other matter within the scope of the inquiry. It is requested that your reply be received at as early a date as possible. Yours truly, HAL H. SMITH, Chairman. 1. What is your opinion as to the fairness of the law in this State with regard to liability of the em - ployers for accidents to their employes? What, if any, are your suggestions as to the amendment of the law? 2. What is your opinion of the operation and adequacy of the Labor Law of this State in relation to the prevention of accidents, and what, if any, are your suggestions for its amendment in that regard? 3. Is the court and jury system for fixing responsibility for industrial accidents now existing in the State satisfactory in its operation? If you answer no, state why. 4. Are you in favor of a system under which all accidents to employes shall be compensated for without regard to negligence, but under which the compensation paid shall be limited in amount? Please state reasons for your answer. 5. Or are you in favor of modifying or enlarging the liability of the employer without changing the present system. 6. If you are in favor of a plan for compensation as described in question four. Are you of the opinion that the expense should be borne by the employer or shared between employer and employe? 7. What is your opinion as to the advisability of the State bearing a portion or all of the expense and in turn collecting same from the public by taxation? 8. What is your experience as to the value of relief associations of employes? 9. If you have one such in your plant please describe it fully. 10. What is your experience as to the merits of the present system of liability insurance? 11. What is your opinion as to the advisability of compelling, if possible, each industry to insure against its own accidents as distinguished from a general insurance scheme under State Supervision? EMPLOYERS RESPONDING. Oliver Iron Mining Co., Iron Mountain, Mich. Manistee Brick Co., Manistee, Mich. Thos. Jackson & Co., Saginaw, W. S., Mich. The Tubes Mfg. Co., Ludington, Mich. Michigan Optical Co., Detroit, Mich. Armstrong & Graham, Detroit, Mich. 17 130 EMPLOYERS' LIABILITY AND Hood & Wright, Big Rapids, Mich. Woodward Furniture Co., Owosso, Mich. Edw. Finley, Hartford, Mich. The Tappan Shoe Mfg. Co., Coldwater, Mich. Peninsular Milled Screw Co., Detroit, Mich. Sheffield Car Co., Three Rivers, Mich. The Oval Wood Dish Co., Traverse City, Mich. Worcester Lumber Co., Ltd., Chassell, Mich. National Cycle Mnfg. Co., Bay City, Mich. Hanchett Swage Works, Big Rapids, Mich. Sargent Mnfg. Co., Muskegon, Mich. The Widdicomb Furniture Co., Grand Rapids, Mich. Baker & Co., Allegan, Mich. American Steam Pump Co., Battle Creek, Mich. The Macey Co., Grand Rapids, Mich. The Challenge Refrigerator Co., Grand Haven, Mich. Acme White Lead and Color Works, Detroit, Mich. Marshall Furnace Co., Marshall, Mich. American Steam Pump Co., Battle Creek, Mich. Peerless Wire Fence Co., Ltd., Adrian, Mich. Reo Motor Car Co., Lansing, Mich. Kellogg Toasted Corn Flake Co., Battle Creek, Mich. Weston-Mott Co., Flint, Mich. Northern Engineering Works, Detroit, Mich. Eureka Heating and Ventilating Co., Saginaw, Mich. National Wire Cloth Co., Niles, Mich. Peninsular Bark & Lumber Co., Sault Ste. Marie, Mich. Wolverine Cedar & Lumber Co., Sault Ste. Marie, Mich. The Huetteman & Cramer Co., Detroit, Mich. Page Woven Wire Fence Co., Adrian, Mich. Burroughs Adding Machine Co., Detroit, Mich. The Kalamazoo Sled Co., Kalamazoo, Mich. American Bridge Co., New York City, N. Y. The Evening News, Sault Ste. Marie, Mich. The Lansing Wheelbarrow Co., Lansing, Mich. Antrim Lime Co., Petoskey, Mich. Hancock Manufacturing Co., Charlotte, Mich. Great Lakes Engineering Works, Detroit, Mich. The Ramsey-Alton Mnfg. Co., Portland, Mich. Beals & Selkirk Trunk Co., Wyandotte, Mich. Schug Electrical Co., Detroit, Mich. Chas. Pehlman & Co., Detroit, Mich. Postum Cereal Co., Ltd., Battle Creek, Mich. Mitts & Merrill, Saginaw, Mich. The Spaulding Engine Co., St. Joseph, Mich. F. W. Prentice & Co., Adrian, Mich. The Pelton & Crane Co., Detroit, Mich. Cooper Wells & Co., St. Joseph, Mich. Zeeland Furniture Mnfg. Co., Zeeland, Mich. Monroe Glass Co., Monroe, Mich. Daisy Manufacturing Co., Plymouth, Mich. Amazon Knitting Co., Muskegon, Mich. WORKMEN'S COMPENSATION COMMISSION. 131 Borough & Blood Buggy Co. Dowagiac Manufacturing Co., Dowagiac, Mich. Columbian Manufacturing Co., Detroit, Mich. , The F. B. Thompson Co., Detroit, Mich. Detroit Casket Co., Detroit, Mich. Northwestern Cooperage Co., Gladstone, Mich. Ypsilanti Press Co. (Hay Press), Ypsilanti, Mich. Nichols & Shepard Co., ^Battle Creek, Mich. A. R. Russell, Bay City, Mich. Superior Cigar Mnfg. Co. Pierson & Hough Co., Detroit, Mich. M. Dervitt, Blanchard, Mich. U. S. Gas Machine Co., Muskegon, Mich. The Pingree Co., Detroit, Mich. Lilies Cigar Co., Detroit, Mich. Central Boiler Works, Detroit, Mich. Peterson Bros. Laundry, Big Rapids, Mich. Diamond Crystal Salt Co., St. Clair, Mich. Marshall Furnace Co., Marshall, Mich. Union Mnfg. & Lumber Co., Northville, Mich. Cobbs & Mitchell, Inc., Cadillac, Mich. Paw Paw Grape Juice Co., Ltd., Paw Paw, Mich. Port Huron Lumber Co., Port Huron, Mich. Wolverine Oil Co., Manistee, Mich. Feige Desk Co., Saginaw, Mich. H. W. Marsh, Manistee, Mich. , The Sears & Nichols Co., Pentwater, Mich. Briscoe Mnfg. Co., Detroit, Mich. Lloyd Construction Co., Detroit, Mich. Baker-Vawter Co., Benton Harbor, Mich. The Ray Chemical Co., Detroit, Mich. Babcock Tissue Paper Co. Gale Manufacturing Co., Albion, Mich. Michigan Stove Co., Detroit, Mich. The Widdicomb Furniture Co., Grand Rapids, Mich. The Grand Rapids Herald, Grand Rapids, Mich. Mud Lake Labor Co., Mud Lake (Alcona Co.), Mich. i 132 EMPLOYERS' LIABILITY AND REPORT SUBMITTED BY EMPLOYERS' ASSOCIATION OF DETROIT. THE EMPLOYERS' ASSOCIATION OF DETROIT, ASSOCIATION ROOMS, STEVENS BUILDING, DETROIT, MICHIGAN. December 16, 1911. Michigan Employers' Liability and Workmen's Compensation Commisr sion, Ford Building, Detroit, Michigan : Gentlemen In answer to your letter requesting information covering a number of matters relating to the subject of your investigation, we beg to state that we have canvassed very thoroughly the membership of the Employers' Association of Detroit. As a result of that investigation we submit the following general report, supplementing the same with cer- tain data secured: With very few exceptions employers' liability is covered by insurance, but the members of this association have recognized their obligation to protect their employes as far as possible and their efforts have been very largely directed towards accident prevention. They have disseminated a large amount of information concerning accident preventing devices, urging the use of every practicable form of prevention device and sup- plementing this with a careful factory inspection conducted by a special employe. These inspections are made from four to six times a year and a careful record is kept of the recommendations made from time to time. We append to this report the result of the inspections for one year. Referring now to the questions submitted by your commission, we reply as follows-: 1. It is our opinion that the liability law of this State has long since ceased to be fair either to the employer or workman. It is unfair to the employer because it leaves practically no opportunity for him to secure practical co-operation with his employes with a view 1 to improving the labor conditions and consequently labor efficiency. It is unfair to the employe because the conditions under which it was originally adopted have so radically changed that the reasons for its form have passed away. In our view no amendment of the present law can be made which will reach the difficulty. The defects can be corrected only by going to the root of the evils inherent in the present system and beginning the de- velopment along radically different lines. 2. We have no criticism as to the operation and adequacy of the labor law of this State in relation to the prevention of accidents. Conditions can be improved not by an increase in the number of laws but in intelli- gent enforcement of those now on the statute books. The State in- spectors should be most thoroughly instructed regarding all safety de- vices on the market, and for this purpose it might be found advisable to establish a State museum in which should be gathered all of the latest suggestions for the conservation of life and limb. We are very strongly of the opinion that the greatest good can be accomplished by education along these lines. It is an easy matter to demonstrate to the intelligent WORKMEN'S COMPENSATION COMMISSION. 133 employer that both the requirements of humane policy and his financial advantage can be served at the same time, and when both his heart and his poeketbook are appealed to he cannot long remain indifferent. 3. The present court and jury system for fixing the responsibility for industrial accidents in this State is very unsatisfactory in its operation. It is slow, extremely expensive and very uncertain. It practically makes necessary the shifting of the burden by the employer to insurance com- panies, whose only interest in the outcome is a financial one, while it rends to widen the breach already entirely too great between the em- ployer and the man with whom he should be upon the most friendly terms. 4. We cannot state too strongly our belief in the advisability of establishing a system of compensation by which all accidents to employes shall be taken care of without regard to negligence, provided the com- pensation is limited to a reasonable sum. The only exception we care to make to this statement is that two classes of accidents should be ex- cluded from the operation of this law. The first are those which are the result of wilful misconduct of the employe; the second those that are the result of intoxication either through the use of liquor or drugs. We are quite well aware that there are extremely few cases at the present time where employes deliberately injure themselves. We believe that this number would be greatly augmented under a compensation system if there were no restrictions. It would not often be necessary for an employer to invoke the defense of wilful misconduct, nor in our opinion would it be possible to successfully invoke that defense unless the evidence were very convincing. At the same time as a deterrent we believe it would prove quite efficacious. We have no .sympathy with the claim that accidents due to the intoxication of the victim should be upon the same plane as those which are the result of mere negligence. In- toxication of the individual who is working in a place more or less dan- gerous is very closely akin to wilful misconduct and the same arguments might be applied. We do not wish to be understood as saying that any considerable number of accidents at the present time are due to intoxication, of the victim, nor would it be necessary very often to invoke this defense, but in principle the man who completely disregards his duty to his fellow workmen, his employer and himself by coming to his work in an unfit condition resulting from his own vicious habits should not be placed upon the same basis as the man who is merely a victim of circumstances. A violation of this principle would, to say the least, be the source of much dissatisfaction. A rational, comprehensive compensation system for industrial acci- dents will obviate to a large extent the evils of the present system; re- move one source of bitter feeling on the part of the employes; establish better relations between the employer and employe, and increase the efficiency of workmen in general. 5. We are not in favor of enlarging the liability of the employer without changing the present system. In order to practically insure the operation of a compensation law under our peculiar constitutional system it may be necessary to induce un progressive employers to adopt the compensation principle by enlarging the present liability, but to en- large the present liability without securing some other substantial 134 EMPLOYERS' LIABILITY AND advantage both to employer and employe would intensify the evils of the present situation. Any possible enlargement could affect but very few injured workmen. Unless the whole system be changed the employer cannot be held liable where he is not at fault, and the injured one must always sustain the burden of proving that the employer is at fault. In over seventy per cent of accidents reported the employer is in no degree at fault. If therefore, he is to be held liable where "he is not at fault there must be a change in the entire system or the law will be illogical. 6. It is our belief that the expense should be borne in some ratable proportion by both employer and employe. The employe should not pay very much, but in no other way than by financial contribution can he be put in right relation to the fund for" his protection. Representatives of certain employes insist that they are seeking for no charity. It is our belief that a system to which they make no financial contribution will come to be regarded as a charity and we fear it will have a very un- wholesome effect. We believe that a financial contribution on the part of the employe will have a tendency, unconscious though it may be, toward the prevention of accidents and malingering. In giving expression to this view we are not unmindful of the fact that the motive of employers has been questioned. We realize the diffi- culties that may exist from a legal point of view in accomplishing this result. We therefore do not wish to be understood as saying that this is a condition without which a compensation law would not be accept- able; nevertheless we feel impelled to state our honest convictions upon this very important phase of the subject. 7. The State should bear only the necessary expense of administering the law. If a special court is established the compensation and expense of such a court should be taken care of by the State. We have very serious objections to any effort to establish State insurance or any other system by which the State will have the collection and disposition of funds devoted to the relief of the victims of industrial accidents. The establishment of a State insurance system would to a very considerable extent defeat the object of the law. We realize that a compensation law is socialistic in its tendencies and we are quite prepared to accept the responsibility for such a step. We confidently believe, however, that we should keep just as far as possible away from paternalism. State admin- istration would be cumbersome, slow, inefficient and dominated by politics. 8. Relief associations of employes to which the employer con- tributes largely are valuable and advisable if we are to have no work- ingmen's compensation law. They may also be of value to supplement that law if it shall prove to be inadequate or if it be determined that the workmen shall bear, as in Germany, the cost of the first weeks of incapacity. 9. So far as the members of this association are concerned there are very few who report relief associations and still fewer who bear any part of the expense of such associations. In the majority of cases where the occupation is considered somewhat hazardous first aid and medical treat- ment are supplied by the employer to the injured. 10. We have no criticism to offer on the present system of liability insurance. It is perhaps the most satisfactory that could be expected under present conditions. It is impossible to predict with any degree of accuracy what the results would be under a compensation law. WORKMEN'S COMPENSATION COMMISSION. 135 We believe that the widest possible latitude should be given to em- ployers in the matter of insuring their risks, consistent with safety and certainty, and that with a compensation law should go an act enabling employers, if they see fit to do so, to unite in mutual associations, organ- ized on a basis satisfactory to the Commissioner of Insurance, to take care of their own risks at cost. It may possibly appear that this work can be more cheaply and satisfactorily done by present insurance organ- izations. If such is the case there will be no need for the mutual com- panies, but in view of the uncertainties in that connection we believe your commission should make ample provision in this respect. 11. We are somewhat at a loss in answering this question, relating to the advisability of compelling each industry to insure against its own accidents, as distinguished from a general insurance scheme under State supervision. In our view the general insurance scheme will be substan- tially the same in effect as if each industry insured against its own accidents; that is the rate will be determined by the degree of hazard. We have given careful consideration to the German system, and ad- mirable as we believe it to be, we fear that it cannot be adapted to our conditions in this respect. In conclusion we submit herewith two reports compiled from data secured from our members and our records. The first relates to the number of recommendations of our factory inspector acted upon during one year. The second relates to data called for by your request for em- ployers' general report. Yours respectfully, EMPLOYERS' ASSOCIATION OF DETROIT, WALTER S. RUSSEL, A. A. TEMPLETON, Chairman Committee on Employers' President. Liability and Workmen's Compensation. FACTORY INSPECTION, OCTOBER 24, 1910, TO NOVEMBER 10, 1911 Number of items reported. Number removed or guarded. Suggestions made regarding: Exposed set screws 800 700 Unguarded gears 220 149 Exposed bolt ends on couplings 296 279 Guards for wood-working machines 110 63 Unguarded belts 121 77 Unguarded pulleys and flywheels 54 41 Exposed keys in fly wheels 45 37 Stairs not provided with rails . . . 64 51 Fire doors blocked or out of order 104 97 Pits and platforms not railed Unsafe ladders 39 70 30 57 Elevators, gates, shafts, etc 89 57 Boilers, low water alarms, valves, etc Unguarded emery wheels . 57 91 44 73 Miscellaneous . 288 203 Total 2,448 1,958 It will be found when the present inspection has been completed that in the majority of instances the items indicated by the above figures as requiring attention, have been corrected or are now receiving attention. 136 EMPLOYERS' LIABILITY AND DATA COMPILED BY EMPLOYERS' ASSOCIATION OF DETROIT FROM INFORMATION FURNISHED BY ITS MEMBERS. Average number of men employed during the year 1910. Production payroll, 1910. Liability in- surance prem- iums for 1910. Amount ex- pended for doctor's bills, first aid, and other payments made as result of accidents 1910. 2,500... 1 900 $1,472,735 03 2 261 000 00 $2,650 92 2 963 40 $1,960 00 2,800 1 400 1,741,065 24 979 ,"596 45 3,125 00 2,356 00 12 963 40 1,450 791 515 450 509 642 315 400 310 327 300 300 389 350 200 804,572 44 655,748 94 315,815 75 305,849 00 302,982 08 301,971 27 263,790 92 211,121 20 199,238 24 188,732 20 187,185 93 162,633 56 150,000 00 134,195 77 121,734 72 2,788 36 1,170 00 904 50 550 53 1,412 39 480 34 490 00 360 45 800 00 425 00 850 00 241 49 330 00 466 93 400 00 387 00 995 90 244 25 475 00 ' '150'S8 434 87 5 66 45 00 150 00 7i7 62 195 201 160 118,937 74 108,309 41 102 845 00 710 00 236 62 234 89 301 00 155 00 121 00 150 95 98,000 00 89,478 60 644 83 84 00 87 80 150 166 115 88,353 92 78,322 86 77 065 14 ' '578' 34' 135 00 50 00 550 00 175 100 75,000 00 5ti 160 00 147 00 121 00 56 66 70 70 50; 964 13 50 000 00 106 05 200 00 100 49 4S7 37 64 93 60 ... 48 370 00 156 25 179 00 71 47,940 00 45,000 00 95 88 80 00 90 66 87.. 43,856 50 107 44 47 45.! . 36,565 66 36, 128 47 ' ' 175 00 29 75 4 00 85 35 (100 00 95 58 55 44 66 33,800 21 33,800 00 32 928 10 ' ' 200 00 ' 25 00 100 00 50 30,565 35 52 35 29,229 93 26,000 00 47 19 32 50 40 35 39 . 26,000 00 25,000 00 24,603 57 175 00 25 00 34 36 28 25 24,000 00 22 045 75 200 00 99 24 16 66 35 24 22,000 00 21 000 00 175 00 100 00 28 00 30 32 23 25 27 30 20,126 08 19,822 75 19,000 00 18,200 00 17,07(> 73 17,902 66 31 25 108 99 '126 '66' 40 00 82 62 7 00 "160" 66 25 00 5 00 19 15,000 00 27 00 2 00 30 15 000 00 50 00 23 14 044 56 119 37 57 29 30 13 000 00 598 00 13 10,311 70 77 34 WORKMEN'S COMPENSATION COMMISSION. 137 DATA COMPILED BY EMPLOYERS' ASSOCIATION OF DETROIT. CONCLUDED. Average number of men employed during the year 1910. Production payroll, 1910. Liability insurance prem- iums for 1910. Amount ex- pended for doctor's bills, first aid, and other payments, made as result of accidents 1910. 28 $9,964 84 $87 50 10 9 360 00 25 00 14 11 9,612 07 9,320 93 20 00 $103 50 10 9 8,000 00 5,200 00 5 000 00 20 00 4 4,680 00 4 000 00 60 00 5 3 100 00 5 7 2,500 00 5 000 00 346 503 253,058 16 376 997 10 29 76 753 99 1,076 69 Total $13 332 604 03 $27,063 87 $24,699 01 To insure reasonable accuracy in the figures representing the average number of men employed for one year, i. e., to prevent receiving reports giving instead of the average number the total number of men employed, the following explanation appeared on our call for the data: "Average number of men employed should be determined by computing the total number of days all the men (on the production pay roll) that were engaged during the year worked, and dividing that total by the number of working days in the year, viz : 307. For example : 1000 men paid for 307 days each 300 men paid for 200 days each 200 men paid for 150 days each 500 men paid for 60 days each 2000 307,000 60,000 30,000 30,000 307)427,000(1390 "While this statement indicates that 2,000 men were employed during the year, 1,390 represents the average number that worked a full year." 138 EMPLOYERS' LIABILITY AND AGRICULTURAL INQUIRIES. Members of the Gleaners and the Grange societies of Michigan re- ceived the following circular form : Detroit, Mich., July 1st, 1911. Dear Sir: It has probably come to your knowledge that by the last Legislature this Commission was appointed to inquire and report in regard to the system of Employers' Liability in force in this State. The report and investigation should in its opinion cover employers and employes on Michigan farms. It appears to the Commission that for the purposes of their inquiry it is important that they should have before them the views of representatives of the agricultural industry, in which a considerable percentage of our citizens are employed and in which the industrial hazard is relatively high. The Commission be- lieves that you must have experience or information as to the workings of the present law and sug- gestions for its amendment which will be of value. The Commission particularly requests that you will make answers in writing to the lists of questions attached, and in addition will be glad to receive from you your observations as to the other matters within the scope of the inquiry. It is urgent that your reply be received at as early a date as possible. Yours truly, HAL H. SMITH. Chairman. 1. What is your opinion as to the fairness of the law in this State with regard to liability of cm ployers for accident to their employees? What, if any, are your suggestions as to the amendment of the law? 2. What is your opinion of the operation and adequacy of the Labor Law of this State in relation to the prevention of accidents, and what, if any, are your suggestions for its amendment in that regard? 3. Are you in favor of a system under which all accidents to employes shall be compensated with- out regard to negligence, but under which the compensation paid shall be limited in amount? Please state reasons for your answer. 4. Or are you in favor of modifying or enlarging the present liability of employer without any change in the present system? 5. If you are in favor of such a plan, as referred to in question four are you of the opinion that the expense should be borne by the employer, or shared between the employer and employe? 6. What is your opinion as to the advisability of the State bearing a portion or all of this expense and collecting same from the general public by taxation? 7. Will you furnish to the Commission any information you may have as to accidents to farm em- ployes, giving the cause, extent of injury, extent of financial loss to workman and compensation re- ceived, and whether, or not, any litigation ar AGRICULTURAL SOCIETIES RESPONDING. Andrew Berger. Scotts. Mich. North Rome Grange No. 735. Central Berrien County Agricultural Society. E. O. Ladd, Old Mission, Mich. Gleaners' Arbor No. L'l. Saugatuck and Ganges Pomological Society. A. A. Peck. Battle Creek. Mich. Eaton County Agricultural Society. Marion Grange No. 670. Gun Plain Grange. Plainwell, Mich. Grand Traverse Grange. Traverse City. Mich. WORKMEN'S COMPENSATION COMMISSION. 139 LABOR ORGANIZATIONS. Secretaries of labor organizations were sent the following list of ques- tions : Dear Sir: It has probably come to your knowledge, that by the last Legislature this Commission was appointed to inquire and report in regard to the system of Employers' Liability in force in this State. It appears to the Commission that for the purposes of their inquiry it is important that they should have before them the views of representative associations of workmen, and they believe that you must have ex- perience or information as to the workings of the present law and suggestions for its amendment which will be of value. The Commission particularly requests that you will make answers in writing to the list of questions attached, and in addition will be glad to receive from you your observations as to any other matter within the scope of the inquiry. Will you bring this matter before your union at the next meeting? It is urgent that your reply be received at as early a date as possible. Yours truly, HAL H. SMITH, Chairman. 1. What is your opinion as to the fairness of the law in this State with regard to the liability of employers for accidents to their employes? What, if any, are your suggestions as to the amendment of the law? 2. What is your opinion of the operation and adequacy of the Labor Law of this State in relation to the prevention of accidents, and what, if any, are your suggestions for its amendment in that regard? 3. Is the court andfjury system for fixing responsibility for industrial accidents now existing in the State satisfactory in its operation? If you answer no, state why. 4. Are you in favor of a system under which all accidents to employes shall be compensated for without regard to negligence, but under which the compensation paid shall be limited in amount? Please state reasons for your answer. 5. Or are you in favor of modifying or enlarging the present liability of employers without changing the present system? 6. If you are in favor of such a plan, as referred to in question four, are you of the opinion that the expense should be borne by the employer, or shared between employer and employe? 7. What is your opinion as to the advisability of the State bearing a portion or all of this expense and collecting same from the general public by taxation. 8. What is your experience as to the value of relief associations of employes? 9. What are the methods and provisions of your union for the care of its injured members? 10. How large a percentage of the expenses of your union per annum are paid for relief of injured members? 11. Will you furnish to the Commission any statistics as to the number of your members injured in the course of employment and compensation received? 12. Do your members make all possible use of accident prevention devices, and what is your ob- servation as to the extent to which they are installed. LABOR UNIONS RESPONDING. Detroit Photo-Engravers Union No. 12, Detroit, Mich. Detroit Typographical Union No. 18, Detroit, Mich. International Moulders' Union of North America, Kalamazoo, Mich. Metal Polishers, Buffers and Platers Union No. 1, Detroit, Mich. United Mine Workers of America, Union No. 1018, St. Charles, Mich. 140 EMPLOYERS' LIABILITY AND Brotherhood of Painters, Decorators and Paperhangers No. 548, Lud- ington, Mich. United Brotherhood of Carpenters and Joiners of America, Union No. 1802, Grand Rapids, Mich. Detroit Electrotypers Union No. 54, Detroit, Mich. International Longshoremen, Marine and Transport Workers Asso- ciation, Harbor Springs, Mich. International Union of United Brewery Workmen, Local No. 10, Grand Rapids, Mich. Bricklayers International Union, Grand Rapids, Mich. United Brotherhood of Carpenters and Joiners of America No. 1077, Owosso, Mich. The Detroit Clothing Cutters' Union No. 60, Detroit, Mich. United Mine Workers of America Union No. 2G64, Bay City, Mich. United Garment Workers of America No. 250, Grand Rapids, Mich. Michigan State Conference of the B. M. and Plasterers, Detroit; Mich. Detroit Stereo typers Union No. 9, Detroit, Mich. International Longshoremen's Association No. 279, Escanaba, Mich. Switchmen's Union of North America No. 80, Grand Rapids, Mich. Cigarmakers' International Union of America No. 22, Detroit, Mich. Port Huron Trades and Labor Council, Port Huron, Mich. Port Huron Typographical Union No. 300, Port Huron, Mich. Wolverine Lodge, International Association of Machinists, Bay City, Mich. REPORT OF MICHIGAN STATE FEDERATION OF LABOR. The Michigan State Federation of Labor at its annual convention held in Battle Creek, during September, elected a committee to consider the matter of workmen's compensation, and the following is their report to that body: To the Officers and Delegates of the Michigan Federation of Labor : Your committee on Employers' Liability and Compensation, find that to endeavor to draft a bill of that nature, which would be satisfactory and give it the detailed scrutiny necessary to get a good bill, would be a practical impossibility. We have therefore set forth certain essential features which we believe should be in any bill to which this federation gives its support, and recommend that this body declare for their incorporation in any liability bill to which it lends its support. First. That it shall not be a defense that the employe was negligent; that injury was caused by negligence of a fellow employe, or that the employe had assumed the risk of injury. Second. That compensation allowed for injury, shall not be assign- able or subject to or liable in any way for debts. Third. That compensation shall be one-half the regular wages of the WORKMEN'S COMPENSATION COMMISSION. 141 employe, with a maximum of $10 and a minimum of $4 per week, ex- cept where injury occurs where employer is operating in violation of any law, regarding hours of work, age of employe or use of any safe- guard provided for by law, where the compensation shall be doubled. Fourth. That measures be provided by which employing interests shall provide funds for paying such compensation. Fifth. In case of death where injured employe leaves no dependents, expense of his sickness shall be paid, and a reasonable sum for burial. Sixth. Where incapacity for work by reason of injury is partial, employe shall receive the difference between his ability to earn and pre- vious wages, but not more than $10 a week, nor less than $4. Seventh. That employes shall automatically come under the compen- sation law unless he give notice to employer within thirty days after beginning work that he elects to sue under the common law. Eighth. That no agreement by an employe to waive his compensation shall be valid. Ninth. That any compensation law shall be administered by a State commission, preferably of three members, one of which shall be recom- mended by this body in such manner as it may provide, if such provision can be so formulated as to be constitutional. Tenth. That such commission be sole judge of facts, but may report questions of law to the supreme court for determination. Eleventh. That where injury occurs on subcontracted work, the main employer shall be held liable. Kespectfully submitted, W. H. STEWART, FEED. SHULTZ, SAM T. PENNA, JAS. SMITH, GEO. D. BAILEY, Committee. After discussions and motions were made and withdrawn, the report of the committee was adopted. Telegrams were read from the secretary of Liability Commission, ask- ing for the committee elected by the Michigan Federation of Labor to a public meeting at Grand Kapids, September 29, and Detroit, September 30. Moved by Penna, seconded by several, that they be referred to the incoming executive board. Carried. Moved by Penna, seconded by several, that the secretary stand in- structed to notify all affiliated unions of the answers to the questions sent out by the Liability Commission. The following committee was elected to serve with the compensation commission appointed by the governor: W. H. Stewart, Kalamazoo; Geo. Bailey, Jackson; Claude Taylor,. Grand Rapids; Homer F. Water- man, Kalamazoo, and August Bricault, Grand Rapids. 142 EMPLOYERS' LIABILITY AND REPORT OF PRESS AND THANKS COMMITTEE. Battle Creek, Mich., Sept. 22, 1911. To the Officers and Delegates of the Twenty-second Annual Convention of the Michigan Federation of Labor: We desire to thank His Honor, Governor Chase S. Osborn, for his impartiality in the appointment of members on the Liability Commission. Also desire to thank the members of the commission for the able assist- ance rendered. STATEMENT OP LAW. To satisfy the demand for information as regards the accepted view by Michigan courts of the common law as at present interpreted, the statement given below was prepared by the commission for distribution : A Brief General Statement of the Lam of Michigan as to Recovery "by Litigation for Personal Injuries or Death Suffered by an Employe in the Course of His Employment. Bearing in mind the general rale that an employer can be held for injuries or death suffered by an employe while he is acting within the scope of his assigned duties, where the employer has failed to use such reasonable care to prevent injuries, as the nature and dangers of the business admit of and demand, it is to be noted that, in this State, the employe's recovery may be barred by the application of one or more of three rules of law, commonly referred to as the employer's defenses, and which constitute exceptions to, or qualifications of, the general rule. They are as follows : 1. Assumption of Risk. Unless there is an express agreement to the contrary, it is held to be a part of the contract of employment that the employer shall not be liable to the employe for injuries which are ordi- narily incident to the particular kind of work he undertakes to do, or Which he knows, or ought to know, are likely to occur in connection with that work. This is true whether the work is regarded as dangerous or otherwise. The employe assumes the risk of such injuries. The Michi- gan court has held, however, that the employe has not assumed the risk of an injury resulting from the employer's noncompliance with some statute, such as that providing for the use of safety devices, etc. 2. Fellow Servant. An employe cannot recover from his employer in case he is injured through the negligence of a fellow employe en- gaged in the same general business, provided the employer has been reasonably careful in hiring, and in retaining, the fellow-employe, and has furnished proper means for carrying on the work. The employe assumes the risk of such injury. This rule, it may be said generally, does not apply in cases where injury or death results from the act of one who represents the employer in the management of the entire busi- ness or some distinct branch of it. WORKMEN'S COMPENSATION COMMISSION. 143 3. Contributory Negligence. Where the employe's own negligence, or lack of ordinary care or caution, is so far the cause of the injury or death that without it the injury or death would not have occurred, he cannot, as a general rule, recover. But he can if the employer has been grossly or wilfully negligent, or if he might have prevented the employe's negli- gence taking effect. APPENDIX VII. TYPICAL RELIEF AND COMPENSATION PLANS NOW IN OPERA- TION IN MICHIGAN. Benefit and Relief Plans of the Cleveland-Cliffs Iron Company. For twenty-five or thirty years it has been the practice of the mining companies of the Lake Superior region to maintain what has been gen- erally called mine benefit clubs, with a club fund to which both employes and the companies contribute, usually in equal amounts. From these funds payments are made on account of accidental injuries received by the members while at work, and from deaths resulting from accident occurring while in the discharge of their duty. The amount of payment has been from $20 to $25 per month in case of injury, and in case of death resulting from such injury, from |300 to $500 is paid to the widow or family of the deceased. The benefit clubs of the Cleveland-Cliffs Iron Company, whose general mining offices are located at Ishpeming, organized along the same general lines as the others, the first one 25 years ago, have the following provi- sions : Each employe contributes thirty cents per month to the benefit fund, and the company contributes an equal amount. From the funds thus provided there is paid in case of an accident occurring while the employe is engaged in his regular work : $20.00 per month to a single man. $25.00 per month to a married man. These payments are made monthly during the period of disability, not to exceed fifty-two (52) weeks, no payment being made for the first five (5) days of disability. In addition to the monthly benefit payments, other amounts are paid for certain serious injuries, as follows: Loss of one arm, leg or eye, $166.66. Loss of both arms, legs or eyes, $500.00. In case of death resulting from an injury, a death payment of $500.00 is made. Arrangements are made by the company with first-class physicians, so that upon the payment of $1.00 per month, the employe and his entire family are provided with medical attendance and the necessary medi- cines, and in case of an accident, he receives hospital treatment as long 144 EMPLOYERS' LIABILITY AND as it is needed without any extra charge. These hospitals are conducted by the physicians as private enterprises, but under the supervision of the company. This arrangment has given general satisfaction. While these benefit payments have been of very great help to the families of the men employed, it was found that in case of death these payments were not adequate, and the company, after very thorough investigation, established a pension system that went into effect January 1, 1909. This system provides for a pension for old employes who have been in the service of the company for a period of twenty-five years. This provision includes a considerable number of employes. It is not at all unusual for miners to continue in- the employ of one company for twenty-five years. In fact, one of the men pensioned under this system had been in the employ of the Cleveland-Cliffs Iron Company for forty -six years. The pension system also provides for the payment of a, pension to the widows and children of men whose death has re- sulted from an accident while in the employ of the company. This pro- vides for a payment of $12.00 per month to the widow and $1.00 per month additional for each child under the age of sixteen, for a period of five years. In case the children were under the age of ten at the time of death of the father, the pension payment, by action, of the pen- sion board, may be continued beyond the period of five years, and until such time as the family becomes selfsupporting, or the children who have reached the age of sixteen years, are capable of rendering such support. In case the mother is also dead, the payments are made to the children on the same basis as though the mother were living, they receiving the full amount of payments as above provided for. During the three years in which this plan has been in operation, the effect has been very beneficial and the families have been able to main- tain themselves with this assistance, without which they would have become a public charge. These payments have been made entirely by the company, without any contributions by the men. The following instances of families now on our pension roll will show the amount of money which will be paid in case of accidents which have occurred since the plan went into effect: Pension No. 25, widow with two children, a boy of eleven and a girl eight years old, payment of $14.00 per month, $168.00 per year, or $840.00 in five years. This added to the $500.00 paid from the benefit club funds gives the family $1,340.00. Pension No. 16, widow with five children, oldest one five years old, will receive $17.00 per month, $204.00 per year, or a payment in ten years of $2,040.00. This added to the $500.00 paid from the benefit club funds, gives the family $2,540.00. This pension, by action of the pension board, may be continued still longer, or until such time as the older children will be able to assist in the support of the family. The payment of $500.00 from the club fund is of especial service, it being paid in a lump sum within a short time after the death of the employe. This amount of money is practically always sufficient to pay for the funeral expenses, and any outstanding bills, so that the family is able to start without any old obligations to be met. The money pro- vided by the club fund and also by the pension system is, however, not WORKMEN'S COMPENSATION COMMISSION. 145 subject to attachment, levy or seizure, but is for the actual use of the family. Any compensation plan would add to its usefulness and value by hav- ing a provision for the payment of some lump sum soon after the acci- dental death of any employe. This sum should not be less than f 300.00. Benefit and Relief Plans of the Oliver Iron Mining Company. The Oliver Iron Mining Company has, since 1880, maintained an aid fund to which the men contribute, and from which- fund a benefit pay- ment of |25.00 per month is paid in case of injury, and $300.00 in case of death. In 1901, Mr. Andrew Carnegie established a trust fund of $4,000,000 of the Carnegie company's bonds, the income of which is applied as follows: 1st. To provide for employes of the Carnegie company, in all its works, mines, railways, shops;, etc., injured in its sendee, and for those dependent upon such employes as are killed. 2nd. To provide small pensions or aids to such employes as after long and creditable service, through exceptional circumstances, need such help in their old age, and who make good use of it. The income from this fund .supplements the assistance rendered through the aid fund, and payments are made for such injuries as con- tinue longer than one year, and as long as the injured man lives, on the basis of seventy-five cents per day for an unmarried man and $1.00 per day for a married man. In case of death the following schedules of pay- ments are made: $500.00 for the widow of the deceased. $100.00 additional for each child under the age of sixteen at the date of deceased employe's death, but in no case to exceed $1,200.00. The company also established a voluntary accident relief plan which w*ent into effect May 1, 1910, with the following provisions: In case of accident, the disability of w^hich lasted more than ten days, payments are made for the period of disability, but not to exceed fifty- two (52) weeks. * Single men, who have been five years or less in the service of the com- pany shall receive thirty-five per cent of the daily wages they were re- ceiving at the time of the accident. Single men of more than five years' service shall receive an additional two per cent for each year of service over five years. But in no case shall single men receive more than $1.50 per day, after deducting the first ten days. Married men living with their families who have been in the service of the company five years or less shall receive fifty per cent of the daily wages they were receiving at the time of the accident. For each addi- tional year of service above five years two per cent shall be added to the relief. For each child under sixteen years five per cent shall be added to the relief. But in no case shall the relief exceed $2.00 per day for married men, after deducting the first ten days. If permanent disability results, the payment depends upon the extent that such injury disables them from their regular employment. The following injuries have specified amounts, and others in proportion to these injuries: 19 146 EMPLOYERS' LIABILITY AND (a) For the loss of a hand, twelve months' wages. (b) For the loss of an arm, eighteen months' wages. (c) For the loss of a foot, nine months' wages. (d) For the loss of a leg, twelve months' wages. (e) For the loss of one eye, six months' wages. In case of death from accidents which happen in the work of the com- pany, the Widows and children are entitled to the following death relief : In the case of married men living with their families, who have been in the service of the company five (5) years or less and leave widows, or children under sixteen (16) years of age, the company will pay relief to an amount equal to eighteen months' wages of the deceased employe. For each additional year of service above five years, three per cent shall be added to the relief. For each child under sixteen (16) years, ten per cent shall be added to this relief. But in no case shall this death relief exceed three thousand dollars (13,000.00). This plan was put into effect for one year, but has been so satisfactory that it has been continued. The payments made under this voluntary accident relief plan are not in addition to those made from the Carnegie trust fund, except in cer- tain cases. Generally speaking, the total amount received is that fixed by the voluntary accident relief plan, and the income of the Carnegie trust fund is applied to these payments so far as it is available, after which the balance is paid by the company, except in cases of total per- manent disability, payments for which are continued during life by the Carnegie trust fund according to the schedule above referred to. The amount paid also varies according to the length of time the in- jured man had been in the employ of the company. In the rase of John Brown, who died as the result of accident at the Queen mine, which occurred on July 13, 1911, the following payment was made to his widow and family: Schedule allowance 18 months' wages at $68.75 $1,237 50 Additional allowance for four children under sixteen years of age at ten per cent each 495 00 Funeral expenses 96 00 $1,828 50 In addition to the foregoing, the family received the sum of $300.00 in cash from the Mine Benefit Club above referred to, making a total of $2,128.50, \vhich was paid to or for their benefit. This man had worked less than five years for the company. If he had been employed for ten years, there would have been added to the schedule payment, above mentioned, three per cent additional for each year's services in excess of five years, or $259.87, making a total of $2,388.37. There are many employes who have worked much longer than ten years, and in some cases more than twenty years for the same company, so that in case of accidents to old employes, the amount paid is materially larger than the figures here given. W. H. MOULTON, Secretary Pension Dep't, The Cleveland-Cliffs Iron Co. WORKMEN'S COMPENSATION COMMISSION. 147 COMPENSATION DEPARTMENT OF THE ASSOCIATED FACTORIES OF FLINT, MICHIGAN. Purposes. The Associated Factories of Flint, Michigan, is an unin- corporated association comprised of the following factories hereafter called associates: "All Flint Vehicle and Automobile Plants." Its general purpose is the betterment of business and factory con- ditions among its membership. The purpose of the compensation department is to afford to any work- men, who shall comply with its regulations, certain payments to be made in case of death or disability from sickness or accident. The pay- ments to be made from the compensation department are intended to supplement the benefits paid by the Flint Vehicle Factories Mutual Benefit Association and will not begin until such benefits are ended. The Funds. The compensation department will maintain a fund to discharge the payments to be made hereunder which fund shall be pro- vided by contributions by each associate of five cents per week for each employe in its plant at the date such contribution is levied. If the contribution of five cents per week is not sufficient to discharge the payments hereinafter provided the executive committee may levy an additional assessment of not to exceed five cents per week for each employe as above set forth. Management. The compensation department will be under the sole management of the executive committee of the associated factories and under the direct supervision of the secretary thereof. The executive committee or such committee thereof as it may designate shall meet at least once a month to pass upon all petitions for payments and to examine the reports of the secretary and the physician. Any associate withdrawing from the compensation department shall not withdraw any portion of fund. But if the associated factories dis- solve as an association, any surplus remaining in the compensation de- partment shall be pro rated to each associate in proportion to the con- tributions such associate has made thereto. The associated factories shall employ a physician, who shall be com- pensated from the compensation department fund. Such physician shall examine and report as to the sickness or disability of any workman eligible to the benefits of the compensation funds upon the receipt by the associated factories of a certificate from the Flint Vehicle Factories Mutual Benefit Association that the workman is still sick or disabled and has exhausted his benefits in that association. In case of the death of a workman he shall investigate and report the cause of death and as to the dependents left surviving such workman. He shall investigate and report at least once each week on each workman to whom payments are being made and shall certify as to whether or not such workman is still under disability. He shall make such other investigations and reports as the executive committee shall deem advisable. To Whom Payments Made. No payment shall be made from the com- 148 EMPLOYERS' LIABILITY AND pensation department to any workman who is not at the time the acci- dent happened, or the sickness began, a member in good standing of the Flint Vehicle Factories Mutual Benefit Association and who at the time the petition for payment is made has not received all benefits which were payable by such benefit association. The executive committee of the associated factories may, however, make such payment from this fund a& they shall determine advisable, but not to exceed the payments hereinafter specified to any workman, or dependents thereof, employed in any of the associated factories. In case of death of any workman otherwise entitled to the payments here speci- fied, the payments will be made to his (Tependents. Dependents mean such members of the workman's family a,s were dependent upon the workman at the time of the accident. They shall include only dependent widow or husband as the case may l>e and children under seventeen years of age (or even seventeen years if physically and mentally incapaci- tated from earning) , or if no widow, husband or children, then brothers, sisters or parents as the case may be. No payment shall lie made to any dependent not a resident of the United States. In every case the question of whether a given person is or is not de- pendent on a deceased workman is solely within the discretion of the executive committee. Every person petitioning for payment as a de- pendent shall make sworn proof of his dependency on blanks prescribed by the executive committee and such proof must bem* the written ap- proval of the physician of the associated factories before any payment is made thereof. The secretary shall be given notice 1 in writing of the change of resi- dence of any dependent or workman petitioning for or receiving pay- ments hereunder. How Petition for Put/ni<'ii1 M