RULE 2.-Preferred risks.

Employments or industries showing an experience of 10 or fewer injuries to the $100,000 of wages expended shall be known as preferred risks of their respective classes and to them shall be applied the rate appearing in the schedule set forth under rule 13 herein.

RULE 3.-Experience risks.

Employments or industries showing an experience of more than 10 injuries to the $100,000 of wages expended shall be known as experience risks and the rate therefor shall be ascertained by using the printed rate fixed for preferred risks as a basis, and adding 3 per cent thereof thereto for each injury in excess of 10 to the $100,000 of wages expended.

RULE 4.-Death or total-disability risks.

Employments or industries whose casualty experience includes the death or permanent total disability of one or more employees as the result of injuries not purposely self-inflicted and which have been sustained (received) in the course of their employment wherever occurring, shall have added to the premium for each six months' period, as determined by rules 2 and 3, 20 per cent thereof and $25 for each such death or permanent total disability until such time as the sum of $2,000 has been paid into the State insurance fund for each such death or permanent total disability, except as provided in rule 6 herein.

RULE 5.-Basis of average experience.

In determining the rate for any individual employment or industry its average casualty experience shall be taken as a basis for the application of the preceding rules if such employment or industry has been in operation for three years.

If it has been in operation for more than six months and less than three years, then the experience for the time actually in operation shall be taken as a basis.

If it is beginning operations or has been in operation for less than six months, then it shall be entitled to the rate fixed for preferred risks plus 25 per cent thereof.

But in all employments or industries which have been subscribers to the State insurance fund continuously for one year or longer, the casualty experience as shown by the books of this department shall be used as a basis in determining the rate to be charged.

RULE 6.

The premium of an employer who has not been a subscriber to the State insurance fund for two consecutive semiannual periods and whose experience for the preceding three years discloses the death or permanent total disability of one or more employees as the result of injuries sustained (received) in the course of employment and not purposely self-inflicted and wherever occurring, shall be computed

according to the rules herein, except rule 4, and there shall be added thereto 20 per cent and $25 for one death or permanent total disability as disclosed in the experience as herein defined, and for each additional death or permanent total disability 10 per cent and $25, but in no case because of this rule shall be added more than $4,000 for any six months' period for any single industry or employment.

RULE 7.-How computed.

The premium of any employment or industry shall be computed upon the estimated expenditure of wages for the ensuing period of six months, and an adjustment of the amount actually due shall be made at the end of each such period in accordance with the actual expenditure of wages.

RULE 8.- Minimum premium.

The minimum premium shall be $15.

RULE 9.-Composite rule.

If an employer conducts more than one kind of employment or industry on the same premises, then each employment of industry shall have its respective class rating; but if no separate record is kept showing the actual wage expenditure of each employment or industry so conducted, then upon adjustment of actual premium at the end of the six months' period the entire pay roll shall be rated according to the highest rate.

RULE 10.-Clerical and office rate.

If clerical and office employees pursue their employment in rooms or apartments separate from other employees engaged in more hazardous employment, then that part of the wage expenditure for such clerical and office help which is in excess of 10 per cent of the total wage expenditure shall be subject to the clerical and office schedule

rates.

RULE 11.- What wages included.

The wage expenditure upon which premium is computed shall include all salary, wages, or compensation paid to all employees, excluding only the salary, wages, or compensation paid to employees engaged wholly as traveling salesmen and salaries paid to officers of corporations as such. If the employer is a partnership, then the salaries or wages of partners shall be excluded."

RULE 12.

[Resolution of August 15, 1912.]

The rules and rates herein adopted shall be subject to the terms of the resolution adopted August 15, 1912, which is hereby reaffirmed and made a part hereof.

NO. 3. STATEMENT TYPICAL OF METHODS OF ADMINISTRATION PURSUED BY STATE BOARDS OR COMMISSIONS.

Hon. CYRUS W. PHILLIPS,

WISCONSIN.

Thirty-third Floor, Metropolitan Tower,

New York City.

DEAR SIR: This is in reply to yours of December 27.

First. The Industrial Commission of Wisconsin administers not only the compensation act, but all the laws having to do with the relation of employer and employee, including safety, apprenticeship, arbitration and mediation, free employment, child labor, women's labor, and labor statistics. Second, method of administration of compensation act: We require the employer to furnish an accident report on the eighth day after the accident. This report gives in detail the facts of accident, wage, and probable period of disability. This report is docketed, and a subsequent report is required every four weeks during disability. These subsequent reports show what payments are made, and the final disposition of the case. Subsequent reports are made by insurance companies where the employer is insured. Employers are instructed to pay compensation according to the provisions of the act, and when disability ceases to file a final receipt with the commission. The accident report and subsequent reports are scrutinized in the office in order to determine that compensation is paid as provided by law. By this method about 95 per cent of the compensation cases are taken care of directly between the employer and employee without any further action on the part of the commission. We find the method gives very good satisfaction so far as the workmen are concerned. There is no red tape, and the workmen get their compensation promptly. In case of disagreement between the employer and workman we furnish a simple form of application for compensation for the workman to fill out. He fills out this application and sends it in to the commission. The commission serves a copy of the application on the respondent and a simple form of answer is furnished. The answer is to be made in five days. At that time the case is set for hearing at some point convenient to the parties. A member of the commission or one of its deputies takes the testimony. The testimony is submitted to the full commission at Madison and the case decided. By this method of administration we have been able to dispose of all cases promptly and at a minimum of expense to the State. From September 1, 1911, to November 1, 1913, compensation was completely paid in 5,627 cases; of this number, 142 were heard by the commission, the balance of the cases being settled directly between the employer and employee. The expense to the commission for the administration of the compensation act, including all printing and postage, from September 1, 1911, to December 31, 1913, inclusive, is $18,000, approximately.

The commission, by its deputies, has investigated all suspicious cases. It has held many meetings with employers and employees, instructing them in the law and how to carry out its provisions. It has issued many bulletins, explaining the law and the methods of the commission. In this way it has kept both the workman and the employer well informed and at the same time interested in working out the compensation problems.

Our law is elective, but for the month of December, 1913, 95.9 per cent of all accidents happening in the industries of Wisconsin were under compensation.

The medical claims seldom come before the commission for consideration. The employer hires the physician, and the payment of the physician is a matter of contract. Our law applies to the State and to all municipalities, and in such cases we have frequently been required to pass upon physicians' bills. We have had little trouble in adjusting these matters so far.

If I have not covered this matter sufficiently for your purpose, I shall be glad to answer any further questions.

Very truly, yours,

INDUSTRIAL COMMISSION,

C. H. CROWNHART, Chairman.

As required by chapter 751 of the Acts of 1911, Commonwealth of Massachusetts, and amendments thereto, entitled "An act relative to payment to employees for personal injuries received in the course of their employment, and to the prevention of such injuries."

This will give you notice that I (we) have provided for payment to our injured employees under the above act by insuring with the..

(Name of employer.)

This is to notify you that I claim my right of action at common law to recover damages for personal injuries. This notice is given to you under the acts of 1911, chapter 751, section 5, Part I, and amendments thereto.

NOTICE OF WAIVER OF RIGHTS UNDER COMMON LAW PREVIOUSLY CLAIMED.

.191...

..employer.

To.. This is to notify you that I waive my rights under the common law previously claimed by former notice, and now claim my rights under the workmen's compensation act. This notice is given to you under the Acts of 1911, chapter 751, section 5, Part I, and amendments thereto.

(Signature of employee.) Address.....

(City or town, street and No.)