or for other reasons. Indeed, the Nevada law speaks of the rates as "initial rates," while the table showing the experience under the Washington act shows that the number of monthly calls was less than the number of months of operation of the law in all cases except for contracting work. While these facts diminish the value of the table as a basis for comparison, particularly as between the rates for Ohio and other insurance States, it is still evident that the State insurance rates are in almost every instance, and in most cases very strikingly, below the rates charged for compensation insurance by stock companies.

The table follows:

PREMIUM RATES PER $100 OF PAY ROLL CHARGED UNDER STATE INSURANCE SYSTEMS AND BY STOCK COMPANIES IN CERTAIN STATES.

EXPERIENCE OF A STOCK COMPANY WRITING COMPENSATION INSURANCE.

In concluding this section of this article it will be of interest to consider briefly a report of the Insurance Department of the State of New York, based on an examination of the United States branch of the London Guarantee and Accident Co. (Ltd.), of London, England. This investigation was made as of date of December 31, 1912, and shows the financial operations of the company for the year with its status at the close. The company in question is an important one, transacting business in 31 States of the Union and the Territory of Hawaii. It writes accident, health, liability, workmen's compensation, steam boiler, burglary, credit, auto and teams property damages, and workmen's collective insurance. The table presented herewith gives only those items of income, expenditure, etc., which relate to liability and workmen's compensation insurance. These items are not always separated, but the data given are as presented in the report.

It is stated that of the total premiums received covering liability and workmen's compensation, amounting to $2,967,477, 44 per cent represents premiums on employers' liability, 33 per cent on other forms of liability insurance, and 23 per cent on workmen's compensation insurance. The items therefore in the first column must be considered as relating, as to approximately 57 per cent of their amount, to employers' liability insurance, and the remainder to other forms of liability insurance.

The table follows:

REPORT OF THE INSURANCE DEPARTMENT OF NEW YORK AS TO THE FINANCIAL OPERATIONS AND CONDITION OF THE LONDON GUARANTEE & ACCIDENT CO.

As to the operations of the company with reference to workmen's compensation insurance, the report says:

This company is writing workmen's compensation insurance in the following States, viz: California, Illinois, Massachusetts, Michigan, New Jersey, Rhode Island, and Wisconsin. An investigation has

been made during the course of this examination of the method of settling claims arising under compensation policies. The following schedule will show the number of claims for compensation made prior to December 31, 1912:

On claims where the disability lasts less than the period during which no compensation is paid, the company is required to furnish medical attention.

In our investigation we find that the compensation is paid promptly in all cases where the law of the State shows clearly that compensation is due. The laws of some of the States are indefinite and uncertain as to the amount of compensation to be paid and in what cases it should be paid. In order to determine its liability, the company is required in some cases to appeal to an arbitration board or a State industrial board. When the liability of the company is determined, the benefits are promptly paid. Any delay in making settlements or disputes that have arisen can in practically all cases be blamed on the failure of the laws of the various States to clearly prescribe the amount of benefit due the workman.

Many requests for lump-sum settlements in death cases are made to the company. It is the policy of the company to discourage lumpsum payments. And further many of the laws do not prescribe the method to be adopted in computing the amount to be paid in a lumpsum settlement. All such settlements must be approved either by a court or by an industrial-accident board and where such settlements have been made the proper procedure has been taken.

We find that compensation claims, especially those where any dispute arises as to the amount, are settled much more expeditiously and satisfactorily in those States which have industrial accident boards whose duty it is to approve the claim settlements. It is the function of members of such boards to determine the amount due under the compensation law and to issue rulings as to their interpretation of its provisions, and as an almost general rule the company abides by such rulings. As the members of the industrial accident boards devote all their time to the subject of workmen's compensation, it is evident that the ruling of such a board is of more value than that of an arbitration board selected promiscuously. As the injured workman selects one arbitrator and the assured another, these two

selecting a third, it devolves upon such third member in most cases to decide the disputed question. It is also true that in but few instances, if any, does the same arbitration board act.

It is believed that in all States there should be some one board or authority which will make a uniform interpretation of disputed questions arising under the law. It can readily be seen that otherwise the insurance companies or arbitration boards will make different decisions as to the benefits to be paid on claims arising under the same provision of the law and a similar state of facts. There are a surprising number of questions arising in the various States as to the benefits to be paid under the compensation acts, and it is important that all the workmen injured be given a fair and impartial hearing before a competent board whose opinions will be respected by the workmen, insurance companies, and courts.

It

In Illinois we find that the injured workman has in some cases, even though the amount of the compensation is absolutely certain, placed his claim with an attorney. The files of the company show many liens for attorneys' fees served on the company, the fees in some cases being as much as 50 per cent of the benefit to be paid. is the policy of the company, whenever possible, to induce the attorney to accept a smaller fee. There is nothing to show that the services of attorneys are required in any cases except those arbitrated or appealed to the courts, and such cases comprise but a very small proportion of the whole number.

It is also found that the medical fees charged by the doctors are in many cases exorbitant. The payment of such fees will, of course, increase the cost of compensation insurance. The company endeavors to be fair to the doctors, but does in many cases persuade them to accept a reduction from their bills. In Chicago and vicinity some of the doctors are compensated by a fixed percentage of the premiums written within a prescribed territory.

The summaries of experience under the acts given in the foregoing pages are necessarily brief and the data can not be considered as more than suggestive. While in a few reports some elaboration on classifications of accidents as to cause, duration, costs, etc., has been attempted, it is clear that with the limited experience under the laws such data are of comparatively small value; and as to some of the subjects considered, it may be said that but little new light could be added even if the data were more extensive, since they have received extensive and prolonged investigation in European countries, so that the facts in connection with them may be said to be fairly established. The rapid growth of the compensation idea, as indicated by the numerous activities of legislation and investigation, is evidence of the fact that the old liability system is recognized as completely outgrown, while the honest contentions of those who hold conflicting views as to types of laws and the modes of achieving the desired ends. suggest the necessity for well-considered action in providing for a system of compensation. The amount of information now available,

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however, seems sufficient to warrant the preparation of an adequate law to meet any industrial conditions. The amount of litigation that has reached the courts of last resort, which is the only authentic test that the Bureau of Labor Statistics can use to determine the extent to which the courts have been resorted to in connection with the compensation laws, indicates the importance of careful wording and full provision to carry out the intentions of the legislatures. That this litigation has not been without profit is evident from the number of amendments that have been adopted incorporating court constructions or otherwise meeting the points raised in the actions at law.