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as ; the~ wecepted -- mortality| tables ooo e . ntoensation 0y contehi oth, coul 'their compensation by contributing would indi¢ate as his probable life, . § discounted, of course, by interest to fii'w accident .{fund, . and --shall at:ar--agreed rate: _© *# . not "be. "permltteq;L,tQ',brotect them>-- s f % | selves in any other way. It seems| mployers: Deluded as to Cost. to me that no right--thinking man in | . Itcis this fallacious system which ' these days can object to the first idea. | vhas ' <~permitted -- the CGerman P!n~| The : injured -employge'ls entitled to | bloyer= in years : past to delude j consideration dand should reéeceive cer-- | himself ~with the belieft that his | tain benefits which, for the sake of rinsur@hce is costing him but very | argument, we will assume are those: f Hittle. 'In Association No. 1, for in--| . 10 be set forth in the proposed bill;' ;;4 Stance} composed of the mining in--| but. 'with the second idea I beg to & dustries, the cost to the employer per| Ttesbectffilly take issue with Sir Wil--| ¢ $1,000 of mwages in 1886 was $8.91; in | liam and those who believe that th@: f 1908 this rate had increased to $28.06,| employer® should be limited (to the' ? notwithstanding the fact that the State accident:--fund for his protection. § number of workmen: insured in this| Now this idea of l!imiting the em-' k association was 843,707 in 1896, and | 'plorercto & Etate fund is not t new ! 198,378 'in 1908 Now it wiil be ap--| nropositian,. *Jt has been, considered ; & parent to you that in any current cost | and debated 'in every country where| system the introduction of a greater' a@ workmen's compensation act has| : pay roll is bound to Hecrease the ; .been promulgated and all of thal R 'gri.\'erage cost.to--the employer. If, for| *2uropean countries, with the cxcep--} A instenece, in this mining association | tion of Germany, Austria--Hungary, | $ & the*: number of: persons insured had / , | Luxemberg and Norway, have dis--';f ' remained at 243,707, the cost in 1908 | | carded it, Austria adopted her work--|, } to-- the=employer \\'0111!.] have -- been '[mon's compensation act about two i sréatly in excess of $26.96 per $1,000 | years after Germany did, so that the f of \\'ug"*.:'; The same'is true of, every |fnl]()'.vlng of her example is not in-- Other Agssocigtion feéembragced in the | significant, but it is interesting to! German groups dor classess Not ons | note that when the matter was dis--| ' o_f <«the> rssociations shows that rates cussed in Belginm and other coun--| 1 have: beoit. maintained at a nriforin tries the proposition of State lnsur-' A tigure; in fact it siasserted even D; ancee exclusively was rejected. : the friechds o tho gsystem that, the In England it will be recalied that | cost will gradually ihcrease until it is the act cortents itself with providing | sstimated that the mi#ximum will not for the payment. of benefits to in-- | be reached until 1935.} It is stated jured employess, and leaves to" each | E that periods of business depression, Individual employer the right to de--. | tesulting'in a darge ngnber of insol-- 2'1(16* how he shall protect himself. II _ ' vencies armd the retivrer§®ient of a num-- cannot go that faur. I beliove that we 3 her S"ef omgpnaraécturers willt increaso bh('u,ld.thruw some satc:gua_rq.l' around l f the hurdeu'to: {Hhoge rémaining in the . the injured party by providing thm'! ; oi q o on ol £he uoh cous t taa dr bm" . 3 ty the employer shall establish his finan-- in@ustries, nacwlithstanding the ac ts io us Hilit? in : s c o on y t ¥ ormilation. 'o" Ihne*--'comparatively | clal IL'.~DUI]S!»'"{() in some way. _In( § eyIR id ie Pss 2l raring the recenrt act in --New York, for in-- | § small-- and ;nfimhcwfx(] "'lllfjrr«fi'r'n' x "i" stance, you will recall that the em-- j k reryse. which is now 'Dbeing Sel jAsid« ployer may belong either to the State | f by the «German. Gevernment. fund or take out his insurance in a | 4 o ob balct i . 1 | stock or mutual company, or if he | ' Fallacy of Cost System. t can demonstrate to tlse ua,.tisfru'liun,' f A# AT--<tated ioxyGun a few minutes. of the Commission that he is finan--| ago,); 'Gernwirs jg..the onlvy couutry ; &'.i:t"}.' strong enough to carry his own j whichK® is fising this current cost .sys-- | insurance, he may do so. providing | ' tem.suarder whiolt. the: persistent and | that he deposit with the Commission § sucdassfu]l';employer is. saddled «.with | such securities as it may 'deem neces--} the paorments t0o the injured \\url}m»-u | sary. 3 2A ; Af o iy. competitor, who retirtes from | s M + s ' Jy{ls?nl:és. leaving his burdens .to hc} Let Employer be Free. CGortrimmes | shoultdered "by his . more _ successful;| After fixing the necessjity for the | competitor.. JFfF we.could imagine a| protection and establishing 'Its qn;:lily,g country in which the industrial condi--}| we should, I think, grant to every em-- ; tions* hara become so stable and set-- | ployer the right to obtain that 1;ru-_f tted that. the -- personnet -- of business | tection in such a way as he deems | Houses itever® changed, that (there j | best. Some employers may decide' nexem¢frre avy failures, that as each | 'thut they prefer to form a mutual | merchant> or . ananufoecturer retired | organization; others may decide that from: laisiness --his family or his em-- | !th(-._v prefer the certainty of a policy ; ployees eon'inued the work, we might {issued by a stock company, which is | Sina@'saitme justification for the enrrent | | not subject to increase in premijum.,| cuétlideél. * Te--know . of n»o country, fnot | [and has the additional -- safeguard | even Gerimainry, which is in the stable | against insolvency, which results from ! c@ndition which 1\ have just deseribed. | the accuroulation of large furds;| F,?éx-"tu"l'nh' the Province of Ontario, and | others may decide that their best in-- | none'of twe'United: States are in that | terest would be served by insuring in | Houidfiun," ufnd: 1f [ may be ipermitted | the State accident fund. but each one | i cagulm . refer to that statement of should be permitted to exercise his Rismarck, J Would like to. call par-- free choice and obtain his insurance | ticolar' attention to. ; the . concluding protection in the place where it seems sentence:s.~" c s0. A most advisable to him, always bearirg ' ®--/ANo .. politigat. question 'can -- be in mind, however, the fact that the | browught. to a. perfect ~. nathematical protection imust be of an unimpeach-- | conclusion so thwt book balances cean able character. | be drgwn "ups these questions rise up, One of the most cherishly regarded | havre «their' day. and then disappear prerogatives of an insurance company | among othor'Guestions of history; that is its right of selection, Thera are | 49' the.way of organic deyelopment." numerous risks which possess char-- | In (a,l\(>'4~_"',)r(15; are 'we. safeécin as-- acteristics that cannot be referred | tuming 'That the 'form of legislation to actuarial stardards, They -- may | adopted' to--day.:. will:< bé adequate to preseni hazards which make thexfi' meet «the Srequirements. of -- future undesirable risks, and every insurance years? ; When the . current cost sys-- company knows that although anxious 1'(,?;')"_-"_;1)1erex;'(pro:\, reaches . fhe.. point to 'nl»min all the legitimate business where.: ty assessments remain . the which it can obtain, its underwriter 'sinme cach--year, there will be a huge is frequently called uporn to reject mass of--unsettled alaims on accidents risks which are not up to the stan-- which have occurtred. in the past,,and dard. Now, in any State fund it is should the laaw at any time change, quite evident that every risk must; be this. mass .of 'lif&bilittes will be a mill-- accepted. Tt is apparent, therefore stone around the necit of.the unfor-- that every employer who maintains tunate employers. _ i his plant in a perfect condition will 8o cmuch for the current cost sys-- suffer if he is grouped with those who tem, which I wis pleased--to note had have not mairtained an equally per-- Been.discarded by 'Sir William in the fect state in their plants, and no modi-- law: which he prepared for this Pro-- fication of premium can possibly ac-- 'vince' dfter: having© carefully consider---- count -- for 'all.of 'the disadvaniages 'ed <the subject and discussing it at which may result from this. great'", length in his.> memorandum Mr. Wolfo's Conclusions, <chi *ey £ i % mla-am ompanied the act. From these remarks Fow Will '8ee I'! Eimployer's Right to Protection, think, that in my opinion the ideal | o tss fls , ; | situation would result from th ao *«The _ :praoposed act 'may be con-- mert of a I&3t which would % en('u,t- sidered®"ag having two separate and for the Pa¥ment of benefits D{';J\%de distinct dbjects. _ The first provides jured workmgn, which ivould re uin- that ifi'case of injuries the workman the employers to protect thems(él e or his:dependents shall be entitled to | in a way satisfactory to the State ;.es_ a definite sum, irrespective of the| which . wouldfinally provide for tfif, question of negligence; the seoondl establishment of a _ State insurance provides that employers in certain fund for the use of those who prete: occupations shall be formed into that form of protection. uts R forty--four classes and that these em-- hW?, of .course, must -- realize that (this i# a new proposition, that we are. ;