Law Lib T M2178a 1909 UNIVERSITY OF CALIFORNIA LOS ANGELES LAW LIBRARY WISCONSIN LIBRARY COMMISSION LEGISLATIVE REFERENCE DEPARTMENT COMPARATIVE LEGISLATION BULLETIN No. 20. ACCIDENT INSURANCE FOR WORKINGMEN REUBEN McKITRICK . MADISON. WISCONSIN JULY. 1909 INTRODUCTION This little summary is gotten out to aid the Wis- consin Special Committee on Industrial Insurance in its work. We hope it will be found useful to librarians and thers who seek information on this great subject. It is not complete in any sense the subject is too great. It merely summarizes some of the efforts along the line of casualty insurance in America and foreign countries. In this connection Bulletin No. 74 of the United St.it.-s Bureau of Labor will be found especially useful, as it contains a summary of all such laws in foreign countries. CHARLES MCCARTHY, Qhief Legitfoifa /,. />,j>rtmect to Employers' lia- bility with prints or the English Acts of Parliament from I*4i5 to 1906. "The book treatsof the historical, technical and judicial basis of Ixjth blanches of Insurance remarkably well." The Jmirnnl <<*; Insurance Science, published by the German Association for Insurance. Berlin. FORKMAX, S. E. Cost of Industrial Insurance in the District of Columbia. Bulletin No. 07. U. S. Bureau of Labor. Nov. 100(5. pp. 781-822. FREUXD, ERXST. Constitutional Aspects of Employers' Liabil- ity. Green Bag, Feb. 1907. GELLER, DR. LEO. Gesetze und Verordnungon betreffeml die Unfallversichorung dor Arbiter. Wien, 1807. With explanations concerning the material and concerning the mini- sterial, administrative at;d judicial practice. fjRiHKix, A. P. C. Select List of References on Workingmen's Insurance. Government Printing Office. 1008. Washington. General: I'nited States: Great Britain: Germany; France: Belgium. HAIXKS, TIIORXWKI.L. Insurance for Workmen in Foreign Coun- tries. IT. S. Consular Reports. No. 295, April 1905. pp. 123-129. HEXDERSOX, ('HAS. R. Industrial Insurance in the United States, 1000. The University Press, Chicago. The best, most complete and reliable collection and exposition of the various methods and devices now being used in the United States for in- suring workmen against accident and sickness. Includes such subjects as law of employers' liability, insurance in private corporations, insur- ance in fraternal orders, benefit features of trade unions, mutual re- lief association , and railway provident associations. Also contains great many recent statistics concerning cost, management, an I results. LAXDIS, A KB. Friendly Societies and Fraternal Orders. 1900. The Fraternal Monitor Co. Rochester, X. Y. 133 pages. A history of the legislation, supervision, mortality, experience, re- forms, rates of assessment and present and past condition of the Eng- lish Friendly Societies, with special reference to the application of their experience to the needed cha ges in the plans of the American Fraternal Orders. LEWIS. FRANK W. State Insurance. 1000. Hough ton, Miffiin Co., Boston. A good statment of the need of workingmen for an insurance against sickness, accident and old age: also of the evolution of the doctrine of employers' liability and an argument for compulsory state insurance. ACCIDENT INSURANCE FOR WORKINOMEN PINKUS, NOKBERT. Workmen's Insurance in Germany. Yale Re- view. Feb. 1904, vol. 12, pp. 372-388; v. 13, May 1904, pp. 72-97; Nov. 1904, pp. 296-395; Feb. 1905, pp. 418-434. Also printed separately. RUBINOW, T. M. Compulsory State Insurance of Workingmen, Annals. Sept. 1904, v. 24, pp. 331-342. "Advocates compulsory state insurance and discusses German law." RUBTNOW, T. M. Labor Insurance. Journal of Political Econ- omy. June, 1904, v. 12, pp. 362-331. "Deals mainly with the economic principles." WILLOUGIIBY, W. F. Workingmen's Insurance, 189S. Crowell & Co. N. Y. One of the best and most complete analyses of the different systems of employers' liability and worktngtnen's insurance in the United States and foreign countries in print. From a statistical point of view it is out of date. ZACHER, .GEORG. Die Arbeiter Versicherung im Auslande, Ber- lin; Verlag der Arbeiter-Versorgung. A. Troschel, 1900-1907. 12 parts in 1 vol. and 5 parts. Includes laws for Denmark Sweden, Norway. Hungary, England, Italy, Austria. Spain, Finland. Russia and Germany. AUSTRIA. Internationaler Arbeiterversicherunss Ronpress, Wien, 1905. 2 vols. Shows the status of workmen's insurance in the principal countries. CONNECTICUT. Special Committee appointed by legislature. Re- port regarding legislation to regulate the liability of employers. 1907. 28pp. CONNECTICUT. Legislative Committee. Report regarding legis- lation regulating the liability of employers. 1909. ENGLAND. Society of Comparative Legislation. Journal 1897, vol. 2. Rivingtons, London. A careful analysis of the laws relating to workingmen's insurance in foreign countries. ENGLAND. Blue Book. Home Office Departmental Committee on Workmen's Compensation, 1904, 1905. FRANCE. Bulletin du Comite Permanent Congres International des Accidents du Travail. 18 vols. to 1907. GERMANY. Handbuch der I'nt'allversicherung. (written by mem- bers of the German Imperial Insurance Bureau) 1897. GERMANY. Imperial Insurance Bureau. The Workmen's Insur- ance of the German Empire, St. Louis Exposition, 1904. Ex- posed in five parts: Origin and Social Importance. Statistics of the Workmen's Insurance. Prevention of Accidents and Workmen's Hygiene. Workmen's Insurance and National Health. Workmen's Insurance and National Economy. ACCIDENT INSURANCE FOR WORKINGMEX IM.IXOIS. Industrial Insurance Commission. Report to the Governor. 1907. Contains a brief but careful statement of the law of employers' lia- liility. workmen's compemtatloa and tin- methods of accident insurance in foreign countries: also of the defrcts of our present system and a copy of the bill proposed for a system of voluntary insurance. MASSACHUSETTS. Joint Special Legislative Committee on Labor. Majority report in reference to a compensation act. In re- port of committee Jan. 1908, pp. 52-72 House Document, 1190. Boston. MASSACHCSEBTS. Legislative Committee. Report on Relations between employer and employee. Boston, 1904, 118p. NEW YOKK. Translations of the laws in foreign countries will be found in the 17th Annual Report of the New York Bureau of Labor as follows: AUSTRIA. Accident Insurance law of Dec. 28. 1*87. pp. 988-989. Act of July 20. 1894. Extending the accident insurance law of 1887. pp. 977-992. DENMARK. Law of Denmark concerning the compensation of Acci- dents to Workmen. .Ian. 7. 1898. pp. 1040-1051. FINLAND. Law of Finland concerning the liability of employers to make compensation for bodily injuries to their employees. Dec. 5. 1898. pp. 1041-104.S. FRANCE. The French Workmen's Compensation Act. April 9. 1898. pp. 1082-1087. GERMANY. Employers' Liability Act of 1871. p. 814. Insurance of Workmen against Accidents.- July 6. 1884. pp. 815-820. ITALY. Law of Italv concerning Workmen's Insurance against Acci- dents. Mar. 17. 1S!8. pp. '1075-1081. NORWAY. The Norwegian law concerning the Insurance of Factory Employees against Accidents. July 23. 1894. pp. 1033-1040. SPAIN. The Spanish Workmen's Compensation Act. Jan. 30, 1900. pp. 1097-1 100. SWITZERLAND. Laws of Switzerland concerning the liability of em- ployers to make compensation for personal injuries to workmen. Acts of 1875. 1881 and 1887. pp. 1125-1129. NEW YORK. Employers' Liability and Accident Insurance Laws Abroad. Bulletin No. :i4. Bureau of Labor. Sept. 1907, pp. 357-381. UXITKD STATES. Compulsory State Insurance Against Old Ape, Disability, etc. Report of the Industrial Commission on the Condition of Foreign Legislation Upon Matters Affecting Gen- eral Labor. 1901, v. 16, pp. 228-241. rxiTKD STATES. Compensation for Accidents. Employers' Lia- bility, Final Report of Industrial Commission. 1902. v. 19, pp. 932-039. T'XITKD STATES. The State Co-operative Accident Insurance Fund of Maryland. Bulletin No. 57, U. S. Bureau of Labor. Mar. 1905. pp. (545-848. A detailed statement of the business transacted under the Insurance Law of 19H2. Wiscoxsix. Senate Committee. Practicability ot Government and State Insurance. Majority Report on Wisconsin Legisla- ture. 1907. ACCIDENT INSURANCE FOR WORKINGMEN WISCONSIN. Senate Committee. Minority Report on Practicabil- ity of Government and State Insurance. Wisconsin Legisla- ture, 1907. WISCONSIN. Industrial Accidents and Employers' Liability in Wisconsin. 13th Biennial Report of the Wisconsin Bureau of Labor and Industrial Statistics. Part 1, 19C8. Contains statistics of Accidents in Wisconsin, an estimate of the cost to the state, the employer and the workingman and an exposition and statement of mutual accident associations, foreign insurance systems and proposed reforms. An excelleht treatment of the subject. WISCONSIN. Industrial Accidents in Wisconsin (Second Report) 14th Biennial Report Wisconsin Bureau of Labor and Indus- trial Statistics. Part 2. 1909. 10 ACCIDENT INSURANCE FOR WORKWOMEN INTRODUCTION The one quality of supreme importance in all plans and methods of iusurance is solvency, the ability to pay the benefits agreed upon. Some governments engage in the insurance business, and in such instances the credit of the government stands as a guaranty for the payment of the policy claims. This is state insurance. The more usual method of conducting the insurance business, however, is through the medium of private corporations under gov- ernment supervision. All the governments of the pro- gressive countries in which insurance is very extensively carried on, have worked out certain tests whereby they are able to ascertain the ability of companies operating under their jurisdictions to fulfill the obligations assumed. These tests are as varied in their character and rigidity as the different states and countries in which they are applied, but they usually take the form of prescribing a regular procedure for incorporation; of requiring' the creation and maintenance of certain capital accounts and reserve funds; of prescribing the different kinds of securities in which funds may be invested; of establishing a standard by which various occupations and industries may be classified accord- ing to the hazard involved; of providing the manner in which premiums and contributions shall be determined and collected; of fixing regular periods in which examina- ACCIDENT INSURANCE FOR WORKINOMEN 11 tions of accounts shall be made and statements rendered; and of determining the manner in which impairments of capital or deficiencies in assets shall be made good. These legal regulations are the expression in statute form of the principles and business methods adopted by strong private companies, and are very largely based on their previous experience. The problem in all efforts to insui'e work- ingmen against accidents is to devise a method which will so fit into the economic situation as not to bs too burden- some on either the employer or the employee and still be financially sound. This bulletin is the result of an effort to collect and arrange in convenient form the various tests above referred to, and to indicate the possible sources of material for a comparative study of the various methods of insurance now in use for ihe benefit of injured work- men. No pretense is made to an exhaustive or even a complete study of this subject, but the primary purpose has been merely to outline the field from the standpoint of those essentials required in state supervision, and to sug- gest sources of information on particular points. 12 ACCIDENT INSURANCE FOR WORKWOMEN ECONOMIC AND LEGAL DEMAND Purpose The primary purpose of accident insurance for working- men is to provide a certain and adequate return for the economic loss of wages due to personal injury in the course of employment. Persona, 1 Accident Insurance The common law doctrine provides no legal protection for workmen except in cases of negligence on the part of employers. 1 To a limited extent this rule is being modified in certain states by statutory provisions which increase the responsibility of the employer for accidents, especially in so far as they may be due to the negligence of a fellow servant. 1 The lack of legal protection and the personal care for themselves and those dependent upon them prompt many individual workmen to insure themselves against acci- dents. This gives rise to a demand for personal accident insurance which is supplied by legal reserve companies, assessment and fraternal companies or trade unions which conduct a benefit department on the assessment plan. 1 Black Law and Practice in Accident Cases, p. 71. "Clark Employers' Liability in United States. Bulletin No. 74, U. 8. Bureau of Lalmr. p. 107. ACCIDENT INSURANCE FOR WORKWOMEN 13 Employers' Liability Insurance All employers are liable under the common law for in- juries to their workmen which are due to their own negli- gence. 1 In some states the legal responsibility of employ- ers in certain industries is considerably increased by statu- tory abrogation of the fellow-servant rule, and modifica- tion of the laws of comparative negligence and assumption of risk. 2 In some foreign countries particularly England and New Zealand employers are made legally liable for all accidents regardless of negligence.' The payment of a damage suit or the payment of a personal injury claim in lieu of a suit may and frequently does place the finances of an employer in a critical condition. In order to avoid such a contingency many employers insure themselves against their legal liability for injury to their employees. This gives rise to a demand for what is known as "Em- ployers' Liability" insurance which is supplied by legal reserve insurance companies organized on either the stock or mutual plan. Workmen's Collective Insurance Some employers out of motives purely personal prefer to insure their employees against accident rather than to insure themselves against legal liability for the accident should it occur. In that event the employers usually ob- tain a policy which covers all the workmen in the plant and pay the premium for it but they frequently share the cost of such insurance with their workmen by deductions 1 Black -Law and Practice in Accident Cases, p. 71. " Clark Employers' Liability in United States. Bulletin No. 74, U. 8. of Labor, p. 114, et seq. "English Workmen's Compensation Act. Bulletin No. 74, U.S. Bureau of Labor, pp. 144-158. 14 ACCIDENT INSURANCE FOR WORKWOMEN from the pay roll. 1 In some foreign countries, notably Germany and Austria, employers in certain industries are required by law to insure their employees against accident rather than to insure themselves against legal liability for the accident. 2 This situation gives rise to a demand for what is known as "Workmen's Collective" insurance which is furnished both in the United States and in foreign coun- tries by legal reserve companies organized on the stock or mutual plan. 1 Henderson Industrial Insurance in V. S. p. 177. 2 See Accident Insurance Laws of Austria and Germany, 17 Ann. Rpt. N. Y. Bur. of Labor. 18W. pp. 815 and !77. ACCIDENT INSURANCE FOR WORKINGMEN 15 DEFINITIONS AND LEGAL DIS- TINCTIONS Insurance Defined Insurance has been defined in general terms in common law as a contract by which one party undertakes to indem- nify another against loss, damage or liability arising from an unknown or contingent event.' This definition has been written verbatim in the statutes of California, North Dakota and South Dakota." Other definitions meaning pi-actically the same though expressed in different form may be found in the statutes of Alabama, Kentucky, Massachusetts, Min- nesota, Mississippi, North Carolina, Tennessee, Texas and Washington. 3 Another common law definition has been stated as follows: "insurance is a contract by which one party, in consideration of a price paid to him adequate to the risk, becomes security to the other that he shall not suffer loss, prejudice, or damage by the happening of the perils specified to certain things which may be exposed." 4 ' Cooley Brief son Insurance Law. vol.1, v. 4. "Cal. C. C. (1906) Sec. 2527; N. D. C. C. (1905), .-ec. 5890; 8. D. C. C. (1908), Hec. 1793. 3 Ala. C. C. (1896) Sec. 2575: Ivy. St. (1903) sec. 641: Mass. L. of 1907. ch. 576 sec. 3: Minn. R. L. (1905) sec. 1596: Miss. Code (190*0 sec. 2563: No. Car. R. L,. (1905). sec. 4679: Tenn. Code (1896). sec. 3275; Tex. R. 8. (1895) Art. 3096a; Wash. Annotated C. & St. (1897) sec. 2838. 4 22 CYC 1384. 16 ACCIDENT INSURANCE FOR WORKWOMEN From an economic point of view insurance may be defined as a scientific method whereby the burden of a particular loss or damage is distributed throughout a group of per- sons exposed to similar loss or damage, and associated for the purpose of assuming that burden. Plans of Organization The business of insurance is usually conducted through one of two general plans of organization, viz: a state in- surance fund or an incorporated company. Insurance in State Fund. Some foreign countries have organized a state insurance department in which a person or firm may become insured just as in an incorpor- ated company. State officials collect and administer the funds and the state guarantees the payment of policy claims in case of a deficit in the cash funds of the insurance department. A good illustration of state insurance is found in New Zealand where the State Insurance Depart- ment is organized into three branches, viz: fire, accident, and life; and furnishes insurance on strictly business prin- ciples in competition with incorporated companies. 1 Nor- way conducts a casualty insurance business through its State Insurance office. In this instance the state pays all the expenses of the central office, half the expenses of the local branches and meets deficits."' Government insurance through the post office of England is also another illustra- tion of state activity along this line. 3 Insurance in Incorporated Companies. The more usual method of conducting insurance is through the medium of 1 Reeves. W. I. North American Review. January. 1906: N. Zealand Laws. (1899) No. 20. 1 Bulletin No. 34. N. Y. Bur. of Lalwr. (1907) v. 360. ' For the law relating to government insurance through the Post Office .see 45 and 46 Viet. o. 51. For statement and statistics of results of this insurance see Henderson Industrial Insurance p. 167. ACCIDENT INSURANCE FOR WORKWOMEN 17 incorporated companies. Under this system the state supervises and regulates the insurance business but does not conduct it. Insurance corporations are formed under general laws, which collect, administer and disburse all the funds and assume all liability for the payment of policy claims and expenses in case of a deficit in the cash funds. The state fixes a standard of solvency by requiring com- panies to have certain amounts of capital, to maintain cer- tain reserve funds, to invest their assets in legally author- ized securities, to render annual statements and to comply with certain other legal regulations. It thereby protects the policy holders from an improper conduct of the busi- ness through its lawful agents, the insurance corporations. This is the method adopted by all of the United States, by England except in case of life insurancs through the post office, and by Austria and Germany. /Stock Companies. The Missouri statutes 1 define an in- surance company organized on the stock plan as one which is owned and controlled entirely by its stockholders, and in the management of the profits of which the policy holders are not allowed to participate. It is pointed out in common law that a stock corporation is organized for the profit of its stockholders. ' Its policies are issued solely upon the credit of its capital stock to parsons who may be en- tire strangers to the corporation, who acquire by reason of their policies no right of mambership and no right to par- ticipate in its profits, and who subject themselves to no liability by reason of its losses.""' In all these particulars stock companies differ from those organiz3d on the mutual plan. The insured have an interest in stock companies, 1 Statutes (1903). see. 7853. 2 21 Am.& Eiur. Enc-yf.of Law 254. 2 18 ACCIDENT INSURANCE FOR WORKWOMEN "however, even though not entitled to share in the profits, nor responsible for deficits, because accumulations from their premiums are in the company's keeping as reserves. 1 Mutual Companies. A corporation doing 1 an insur- ance business, which has no capital stock and in the man- .-agement and profits of which the policy holders alone participate, is a mutual company." 2 The essential fea- tures of a mutual company are that all policy holders are members of the company, that the companies are required by law to have a minimum membership, that the funds are made up from cash premiums and assessable premium notes, and that the policy holders participate in the profits.' Certain funds of a mutual company in Illinois have been defined by statute as the capital of the com- pany, 4 and in a few other states mutual companies have what is known as a guarantee capital,' but a guarantee fund -or the payment of cash premiums does not change the character of a mutual company to that of a stock com- pany. Assessment or Co-ojteratire Companies. An assess- ment or co-operative company is one which contracts to pay a benefit to the designated beneficiary upon the death or physical disability of the insured, which benefit is con- ditioned not upon fixed payments, but upon the collection of assessments from time to time upon persons holding 1 Oawson. The Business of Life Insurance. p. 119. 2 Mo. A. S. (1906) Sec. 7853. *22 C'VC 1410: Spruance v. Farmers' etc. Ins. Co. 10 Fa. 25: 21 Am. & Eiur. Encyc. of Law. 253: Cooley Briefs on Ins. Law. v. 1. p. 51: Planters Ins. Co. v. Comfort. 50 Miss. 602: Mulroy v. Knights of Honor. 28 Mo. App. 463. 4 111. Laws of 1905. p. 293. Sec. 9. 'Colo. L. of 1907, e. 193. sec. 25: Cal. C. C. (1906) sees. 437 9: Pa. Ins. Law (1905). pp. 2*-9: Mich. Ins. Law (1907). sec. 13-16. Cooley Briefs on Ins. Law v. 1. p. 51. See also Dawson, The Business of Life Insurance, chapters 14 and 15. ACCIDENT INSURANCE FOR WORKWOMEN 19 similar contracts. 1 Such companies are usually organized on the mutual basis and exist solely for the benefit of the members and their beneficiaries and not for profit. In twenty states they are required to maintain an emergency fund and in six others are permitted to do so.' In a few states the maximum benefit is limited to the amount that can be raalized from a periodical call or assessment/ fraternal Beneficiary Associations. A Fraternal Beneficiary Association is usually defined in the statutes as one which is organized and conducted for the sole bene- fit of its members and not for profit; which has a lodge system with a ritualistic form of work and a representa- tive form of government, employs no paid agents except in the organization and supervision of the work of the lo- cal lodges and pays its losses and expenses and accumu- lates its reserves, if any, from voluntary donations, dues or assessments. The lodge system with the secret ritual and the representative form of government are the char- acteristics of the fraternal beneficiary association which l cf. definitions in Ala. C. C. (1907) sec. 3564: Cal. C. C. sec. 453d: Colo. L. Of 190". e. 193, sec. 71: 111. L. of (1893) P. 117. sec. 11: Ind. Burns A. S. (1908) sec. 4748: la. Code. (1897) sec. 1784; Me. It. L. (1903) p. 497: Mass. It. L. (1902) c. 120, sec. 1: Minn. R. L. (1905) sec. 16J9: Mo. St. (1906) sec. 7901: Mont. C. C. (1895) sec. 721: N. Y. R. S. (19J5) v. 2, p. 1835; It. S. his. Law (1907). p. 43; Tenn. L. of 1897. c. 127: Va. L. of 1906. p. 138; \Vis. L. of 1907, c. 546. a Ala. C. C. (1907) sec. 3588: Ark. Kirby's Digest (1904) sec. 4348: Cal. C. C. 453h: III. R. S. (1905) <. 73. sec. 237; Ind. Burns A. S. (1908) sec. 4749; Kas. O. S. (1905) sec. 3644: Ky. St. (1933) sec. 662: Me. R. L. (1903) sec. 498: Mass. It. L. (1902) c. 120. sec. 10: Mich. Ins. L;iw (1907) sec. 94: Minn. It. L. (1905) sec. 1901: Mo. St. (1906) sec. 7905; Mont. C. C. (1895), sec. 724; N. H. L. of 1897, c. 38; No. Car. It. L. (I!H5) sec. 4792: N. Y. R. S. (1905) v. 2. p. 1888; O. Bates A. S. (1908) sec. :(630i: R. I. Ins. Law 1907. p. 45: Tenn. L. of 18.)7, c. 127. sec. 7; Vt. I'. St. (1906) sec. 4771; Va. L. of 1906. p. 147. 3 Ark. Kirov's Digest, sec. 4348; Conn. G. S. (1902) sec. 3607: Ga. Ins. Law (1905) p. 15, sec. 14; Ind. Burns A. S. (1908) sec. 4751: ore. St. (1903) sec. 3750: Tex. L. of 1905. c. 125; Wis. L. of 1907, c. 507. 3630 4 Nebr. Cobhey's G. L. (19;)7) sec-. 6163 and 6471: O. Bates A. ?. (1908) sec. 30; Tex. L. of 1903. r. ill: Va. L. of 190(5, p. 150: Wy. It. S. (1899) sc<-. 3277. 20 ACCIDENT INSURANCE FOR WORKWOMEN distinguish it from the assessment or co-operative com- pany. 1 Kinds of Companies Companies are usually classified in one of two groups, either as assessment companies, or as "old line", ' legal reserve" or "level premium" companies, depending upon the manner in which they conduct their business. The terms "old line," "legal reserve" and "level premium" when used in this sense are synonomous and are frequently used interchangeably, but there is a very essential differ- ence between this kind of insurance and assessment insur- ance. Level Premium Companies. Level premium insur- ance may be defined as that insurance which is fur- nished in return for a periodical fixed premium," pay- able in advance and based on experience tables without reference to the losses or expenses which may be act- ually experienced in any particular year, as a price paid for the assumption of risk, and for which the insured is relieved of liability for anj' assessment to cover un- expected losses or expenses. Level premium companies charge a premium sufficient to maintain such reserves as will enable the company to carry out its own obligations on the basis originally agreed upon and to protect it 1 cf.definitions in Ark. Kirby's Digest (1904) sec. 4351: Cal. C. C. (1906) sec. 451: Colo. L. of 1907, c. 193. sec. "3; Conn. G. S. (1!K)2) sec. 3582: Del. Laws. v. 22, e. 99, sec. 6: Idaho C. C. (1901) sec. 224>: 111. R. S. (I9U5) c. 73. sec. 258: Ind. Burns. R. S. (1908) sec. 4764: Me. K. S. (1903) p. 500: Md. G. L. (19A3) Art. 23. sec. 210: Mass. K. L (1902) Oh. 119: Mich. Ins. Law (1907) PC. 144: Minn. L. of 1907. c. 321. sec. 1: Miss. Code (1906) sec. 2638: Mont. C. C. (1895) sec. 721: Xebr. Co!>bey's G. L. (I!W) sec. 6.B5: X. II. L. of 1895. c. 8i5: Xo. Car. R. L. (1905) s. c. 4794-7: O. Bates A. S. (1908) sec. 3t531-ll: Okla. Wilson A. S. (1903). sec. 323(5; la. Ins. Law (1905) p. 7t>: So. Car. C. C. (1902). sec. 1830: So. la. C. C. (1908) sec. 725: Tenn. L. of 1905. c. 480: Tex. L. of 1899. c. 115: Va. L. of 1906, p. 152: I'tah. St. (1903), sec. 418: Wash. L. of 1903. p. 145, sec. 1: Wy. L. of 1901. c. 51. 1 Cooley Briefs on Insurance Law, v. 1, pp. 54-55. ACCIDENT INSURANCE FOR WORKINGMEN 21 against unexpected losses and expenses. 1 Mr. Miles M. Dawson, an eminent New York actuary, explains the necessity for these reserves in the following terms:. "A level premium, to cover an increasing hazard, converging into certainty of loss, as does a whole life premium, calls for an accumulation of the excess of the premium over the current cost during the earlier years, the drawing back from this accumulation and its interest during the later years and the final application of the entire fund toward paying the insured's own claim whenever his death takes place." 2 Ileserves thus set aside constitute the distin- guishing characteristic of level premium insurance.' Practically all stock companies and such mutual companies as provide in their policies for the payment of fixed pre- miums contract insurance on the level premium plan and are designated as "level premium" or "old line" com- panies. Mutual Benefit Association. Assessment or co-opera- tive companies and fraternal beneficiary associations are usually classified by the courts as Mutual Benefit Associa- tions because they are both organized for the sole benefit of the members and not for profit. Strictly speaking these two classes of companies, frequently known as Mutual Benefit Associations, are the ones which do a purely assessment insurance business and therefore are com- monly designated as "assessment companies." The term ' 'Mutual Benefit Associations" may be said therefore to be the more general term used by the courts to include the two 1 Dawson Business of Life Insurance, i>. 39. In connection with the sub- ject of level premium and assessment insurance a careful study of chapters 3, 4 and 5 in Dawson's Business of Life Insurance will be found helpful. a Dawson Business of Life Insurance, p. 38. 3 Dawson Assessment of Life Insurance, pp. 7 and 8. 22 ACCIDENT INSURANCE FOR WORKINGMEN forms of organization which do a particular kind of business but not to designate a particular form of organization in it- self. 1 Assessment Companies. Assessment insurance is that insurance which is provided from funds derived from as- sessments or periodical calls levied to cover a particular loss or the losses and expenses of a particular term. 'The predominant and distinguishing feature of all mutual benefit associations is that the payment of losses by death or in- jury is not by a fixed premium payable in advance, as in the case of ordinary insurance companies, nor by deposit notes, as in the case of mutual companies, but by post mortem assessments, intended to liquidate specific losses, and levied only oa surviving members."" It is customary, however, among most assessment companies to charge an anticipated assessment in the nature of a more or less regu- lar premium but on the condition that an additional assess- ment may be charged in case of a deficit. The character of an assessment or co-operative company is not affected by the fact that it may have established and maintains an emergency or guaranty fund to insure the prompt payment of its losses.' 1 Kinds of Insurance From the standpoint of legal responsibility for protec- tection against accidents, there are two general kinds of insurance, viz., voluntary and compulsory. Voluntary. When insurance against accident is pro- vided in the absence of legal obligation to do so, it is said to be voluntary insurance. If such insurance is provided 1 Cooley Briefs on Ins. Law, v. 1, p. 54. * Cooley Briefs on Ins, Law, v. 1, p. 54. 3 Cooley - Briefs on Ins. Law, v. 1, p. 55. ACCIDENT INSURANCE FOR WORKWOMEN 23 by the workman himself, it takes the form of personal ac- cident insurance; but if it is provided by the employer for himself it is liability insurance, or if, for his workmen, then it is collective insurance. Throughout all of the United States and in Denmark, France, Great Britain, Greece, Russia, Spain and Sweden, insurance is volun- tary. 1 Compulsory. Compulsory insurance is such insurance against accidents as is required by law. It is collective in form and is usually provided from funds to which both employers and employees contribute. Insurance against accident is compulsory in Austria, Belgium, Finland, Ger- many, Italy, Netherlands and Norway. 2 Distinction between Compulsory Insurance and State Insurance. State insurance is insurance which is pro- vided in a fund created by the state and managed by state officials, but compulsory insurance is that insurance which is provided as the result of legal requirement and may be secured in either a state fund or in the funds of incorpor- ated companies. 3 Compulsory insurance, therefore, is not state insurance, but may be insurance required by law in. incorporated companies. The accident insurance of Ger- many and Austria is compulsory insurance, but not state insurance. All accident insurance carried in the Insurance Department of New Zealand is state insurance, but not compulsory insurance. A quotation from the explanation of the German Workmen's Insurance at the Louisiana Purchase Exposition in 1904 by Dr. Ludwig Lass will illustrate this principle: x 'According to the German sys- 1 Bulletin No. 34, p. 300 (Chart) N. Y. Bur. of Labor. (1907) a Bulletin No. 34. p. 3tSO (Chart) N. V. Bur. of Lax>r. (1907) 8 Contrast Accident Insurance Laws of Now Zealand (>3 Viet. No. 20, with Accident Insurance Laws of Austria ami (iermany. 24 ACCIDENT INSURANCE FOR WORKINGMEN system the productive classes, employers and employees, are by means of corporate self-administration exercising social self-help organized on the basis of regulations bear- ing the character of public law. Consequently m> huve not in Germany, as is often erroneously thought abroad, an insurance by the state, but an insurance by the inter- ested parties themselveSf throttyh the medium of vital cor- porations,* which are standing between the state and the individual and which are charged with the execution of the insurance." 1 Insurance on Life The different kinds of insurance on human life have been classified according to the circumstances which make a benefit payable as life insurance, accident insurance and health insurance. Life Insurance. Life insurance is that kind of insur- ance which involves the payment of money or other thing of value to families or representatives of policy holders, conditioned upon the continuance or cessation of human life, or involving an insurance, guaranty, contract, or pledge for the payment of endowments or annuities.'' Industrial Insurance. A kind of insurance has grown up in the United States and England in the past fifty years, as a branch of general life insurance, which is known as industrial life insurance, because of its peculiar nature and methods of business. When defined in the statutes the term industrial life insurance is generally used to mean that insurance for which the level premiums are regularly *The italic* do not appear in the original copy. 1 LAW German Workmen's Insurance, i>t. 1. p. 15. 2 Statutes of Texas. 1897 Art. 30Wa. ACCIDENT INSURANCE FOR WORKINGMEN 25 payable and collectable weekly or bi-weekly, and the poli- cies or benefit certificates are for suras of not more than five hundred dollars on a single life and may provide a weekly benefit for disability caused by sickness or accident not greater than twenty dollars per week. 1 Industrial in- surance is accident and health insurance adapted to the special needs of workingmen on which the premiums are collected at frequent intervals. When used in this sense the term industrial insurance" is to be distinguished from the same term which is frequently used to mean industrial life insurance. Accident Insurance Accident insurance is that insur- ance which involves the payment of money, or other thins; of value to families or other designated beneficiary of policy holders, conditioned upon the injury, disablement or death of the person insured resulting from travel or general acci- dents by land or water. In general this includes all per- sonal injuries of whatever nature resulting from external, violent and accidental causes, and differs from life insur- ance only in that a policy claim accrues from a more limit- ed number of causes. 2 In certain instances of accident insurance for workingmen the benefit may become payable only as the result of accidents which occur in the course of employment. JfpK/th Iitmiriincr. Health insurance is indemnity for loss on account of sickness.' 1 Closely allied to health in- surance is the indemnity for old age which is provided for by many mutual benefit associations.' 1 Laws of Ga. UM)5, c. 59; Mo. Stat. (11HW), sec. 7943. * Cf. Statutes of Texas. IS.tr. Art 3Utia. The Fidelity & Casualty Co. of N. Y. Its History. Standing-, and Business Methods. 1905. p. 10. 3 Cooley Briefs on Ins. Law. v, 1. p. 5.' 4 Cf. Statutpsof Ark. Ktr!>y's PUrest. (19;H) so-. 4351: 111. It. S. (1905) c. 73. sec. 258: Xebr. Cobbey'sG. L. 1907 sec. tit>3t>: and definitions of fra- ternal beneficiary associations citations for which are jriven on page 19. 26 ACCIDENT INSURANCE FOR WORKWOMEN Ptowiona Annuities Indemnities, In the current discussions of insurance for workingmen the term "pension" "annuity" and indemnity* 1 are frequently used in the same sense and when so used they severally mean the payment of fixed amounts to a beneficiary throughout a period of years instead of one lump sum when the policy becomes a claim. The payments may be made weekly, monthly, quarterly or semiannually as may be agreed upon as well as annually. This meaning is not in strict accord with the technical definitions of these terms. 1 Policies An insurance policy is a contract in which it is agreed that the occurrence of particular circumstances or events shall make a benefit payable. Policies may be classified according to the nature of the agreement made as personal accident, employers' liability or workmen's collective poli- cies. Personal Accident. A personal accident policy is one which covers the individual against accidents happening- to himself." Employers' Liability. An employer's liability policy is one which insures an employer against claims that may b3 made upon him because of injuries suffered by his em- ployees and for which he may ba liable by reason of some act or default.' It relates to a class of personal injuries for which some one other than the injured person is re- sponsible, and who is legally bound to make compensation for the l^ss sustained/ 1 For an i Hint rat ion of use above referred to see W il lough by Work- logmen'M Insurance, pp. 70.71 and 104. 7 cf. The Fidelity & Casualty Co. Its History, Standing and Business Methods -lit J5. p. 12. 3 The Fidelity & Casualty Co. Its History, Standing and Business Meth- ods 1H05, p. 12. 4 Dunham, Vale Insurance Lectures, v. 2, p. 23(5. ACCIDENT INSURANCE FOR WORKINGMEN 27 Workmen's Collective. A workmen's collective policy is one which includes all the employees of a firm or cor- poration in a single contract and insures them against loss by reason of accident or accident and sickness. "Work- men's collective insurance is wholesale insurance, the policy running to the employer, and the protection there- under to the workmen whether the employer be legally liable or not." The premium for this class of policies is based on the number of employees, the hazard of the oc- cupation and the amount of wages, 1 and is usually paid by the employer, though he may share it with his workmen by deductions from their wages. Funds In general all that part of the income of an insurance company which is not used to meet current losses and ex- penses is credited, according to well established principles of business, to one or more of the reserve funds whence it becomes a liability of the company and is invested accord- ing to law for the security of policy holders. The reserve funds to which it may be credited have been named ac- cording to the purpose which they serve. The remainder of the income after these reserves have bsen set aside con- stitutes profits. Reinsurance Reserve. Theoretically a reinsurance re- serve is a fund set aside from premiums collected sufficient in amount to enable a company to transfer or reinsure all its outstanding, unexpired risks in some other solvent com- pany or to settle the claims that become payable thereon as they arise. 2 Such a reserve can be computed according 1 to scientific principles and is required by law to be raain- 1 Henderson Industrial Insurance, p. 177. 2 Dunham Yale Insurance Lectures, p. 222. 28 ACCIDENT INSURANCE FOR WORKWOMEN tained by all legal reserve or level premium companies. It has been judicially described as a fund which must be equal in amount at all times to the aggregate policy lia- bilities at their then present value. It is created to secure these liabilities, and is from that circumstance impressed in a certain sense with an equity in favor of the holders of policies. 1 This fund is also known as the "premium reserve." Liability Reserve. The liability reserve is a special fund which employers' liability companies are required by law in some states to set aside as security for obligations accrued but unpaid." These claims accumulate because of 1 New Haven Trust Co. v. (iaff ney. 47 All. 7t: 73 Conn. 480. a The technical statement of the rule for computing this reserve as it ap- pears in the Mew York Statutes is as follows: (Revised Statutes and General Laws. v. 4. Sun. p. 426): In estimating 1 the condition of any casu- alty insurance corporation, under the provisions f this chapter, the super- intendent shall allow as assets only. such investments as are authorized by the existing lawsof this slate, at the daieof its investigation: and shall charge as liabilities, in addition to the capital stock, all out -landing in- debtedness of the corporation, and the premium reserve on ix>licies in force, euual tolhe unearned portions of the gross premiums charged for covering the risks, computed on each respective risk f torn the date of the issuance of the polic.v. There shall also be charged as a liability to each company which undertakes or writes insurance under subdivisi >n three of section seventy of this act. whether organixed under this or any other state or country, a further reserve as hereinalter provided. For the pur- pose of computing said reserve, each such company which has been en- gaged in liability underwriting for ten years or more, shall, on or before the first day of October in each year, state in writing to the superintendent of insurance its experience in the Fritted States, under a 1 forms of liabil- ity policies, each year separately according to the calendar years in which the policies were written, during a period of five years commencing ten years previous to the thirty-first day of December of the year in which the statement is made, in the following particulars, namely: The number of persons reported injured under all of the forms of liability policies whether such injuries were reported to the home office of the given company or to any of its representatives: the amount of all payments made on account or inconsequence of injuries reixjrtcd under such policies; the number and amount, separately, of al> suits or actions against polic.v holders under such policies which have been sett ed. either by payment or compromise: both of the above amounts to be ascertained as of date of the thirty-first day of August of the year in which the statement Is made, and to include in the case of suits all payments made on account or in consequence of the injury from \vhichthesuit arose, whether prior to or later than the date at which thesuit was brought. Each such company shall thereupon reserve nix>n all said kind of policies, irrespective of the date at which the policies were issued (1) for each suit or action pending, on injuries reported prior to eighteen months previous to the date of making the statement, whether such injuries wen- reported to the home office of the given company or to any of Its representatives, and which is being defended for or on account ACCIDENT INSURANCE FOR WORKINGMEN 29 the time required for adjustment and settlement or for litigation and they are no longer protected by premium reserve because the insurance is not in force, since the policy becomes a claim against the company as soon as the injury occurs. 1 Contingency Reserve or Surplus. A contingency re- serve or surplus is a fund which is set aside after the re- insurance reserve has been provided for to maat unex- pscted losses and expanses. 2 The reinsurance rasarve is computed on the basis of experience for a pariod of years. It is, therefore, based on averagas, and in normal con- ditions a company 'would ba financially sound with no other reserve than its reinsurance reserve. But in order of the holder of any such policy the average cost thereof as shown by said experience, and (2) for injuries reported under such policies at any time within eighteen months, whether such injuries were reported to the home of- fice of the given company or to any of its representatives, the aver age cost for each injured person as shown by said experience. From the sum so ascer- tained the company may dedu -t the amount of all payments made on ac- count or in consequence of said injuries reporte i within eighteen months, this amount to be taken as of the date at whith the statement is made. Any company which now issues, or shall hereafter iss ('.liability policies as aforesaid, and which has not been engaged in liability underwriting for ten years, -hall nevertheless, until such times as it may be liable to state its experience of the period hereinbefore required, make and maintain a re- serve upon all said kind of policies, irrespective of the date at which the policies were issued, determined as follows: (1) for each suit or action pending. on injuries reported prior to eighteen months previous to i he date of making the statement, whether such injuries were reported to the home of- fice of the given company or to any of its representatives, and which is being defended for or on account of the holder of any such policy the aver- age cost thereof as shown I y the average of said experience of all other companies stated as required by this secti. n. and (2) for injuries reported under such policies at any time within eighteen months, whether such in- juries were reported to the home office of the given company or to any of its representatives, the average cost f' r each injured person as shown by the average of said experience of all other companies stated as re luired by t his section : which average costs for suits and for injured person shall be furnishen by the superintendent of insurance to each such company on or I efore the first dav of December, in each year. From the sum so ascer- tained eachsuch company may deduct the'amount of all payments madeon account or in consequence of said injuries reported within eighteen months, this amount to be taken as of the date at which the statement is made. For other statements of the rule by which this reserve is computed con- sult Ala. C. C. (1VH)7). sec. 4555: Cal. L. of 1SKW, Ex. Sess. c. 119. sec. 602a; Conn. L. of 1905, c. 272: 111. L. of 1905. p. 288, sec. 12a; Mass. L. of 1907, c. 576, sec. 11: Mich. Ins. Law. (1907) sec. 42ti. 'Dunham. Yale insurance Lectures, p. 245. 2 Dunham Yale Insurance Lectures, p. 223. 30 ACCIDENT INSURANCE FOR WORKWOMEN to guard against exceptional losses, some companies set aside a special fund before distributing profits, which is known as the contingency reserve or surplus. This re- serve is not required b.v law but it is maintained by every conservative company as a safeguard against emergency. Reserve or Emergency Fund*. Reserve or emergency funds is the term applied to funds set aside by mutual benefit societies in order to enable prompt payment of pol- icy claims in lieu of an assessment. They are required by law in some states to be maintained by this class of companies; in other states their maintenance is permissible but not obligatory. 1 Profits. "Profits" is a term applied in the statutes of a number of states to that portion of the funds of an in- surance company not required for the payment of losses and expenses, nor set apart- for any other purposes allowed by law." The term "profits" represents a definite concept in insurance law, for a large number of states specify that dividends may be declared only from profits, and that these profits must be estimated according to statutory rule. 1 Citations to statutes in which tin- term reserve or emergency funds is used will be found under the head of reserves for Assessment Companies and fraternal beneficiary associations. y. 40 and 44. s Typical definitions will be found in the following citations: cf. Laws of Colo. 190' ( . eh. 193, sec. 50: Laws of Mass. 1907. ch. 57<>. sec. 1; Laws of Minn. 1907, ch. 321. sec. 1: K. S. of Texas 1897 Art. 309Ga. ACCIDENT INSURANCE FOR WORKWOMEN 31 ANALYSIS OF BUSINESS METHODS Stock Companies Incorporation. Any number of persons, though usually not less than three or five may form an insurance corpora- tion under general law on the stock plan. The usual re- quirements for this class of corporations are that a certi- fied statement including the name of the proposed corpor- ation, the names of its incorporators who must be stock- holders, its by-laws, the particular kind of insurance to be transacted and the amount of capital stock, must be filed with the insurance commissioner or the secretary of state. When the capital stock or such a portion of it as is re- quired by law, has been paid in and do posited with the state treasurer or insurance commissioner if such deposit is required and the insurance commissioner is satisfied that the proposed corporation has complied with the law in all other respects, a license is granted and the new corpora- tion may issue policies. For companies which transact a general accident or em- ployers liability business the amount of capital stock re- quired is $100,000 in 32 respective states. 1 Florida, Indi- 1 For general provisions relating to capital and incorporation see Ala. C. C. (190?) sec. 35(53: Ariz. K. S. (1901) sec. "84: Ark. Kirby's digest. (1904) sec. 4335: Cal. C. C. (1906) sec. 420. L of 190ti, c. 119; Colo. L. of 1907. c. ll>3 sec. 25: Del. Laws, v. 22 c. 99. sec. 4: Oa. Ins. Law (1905), p. 8: III. It. H. (1W5) c. 73 sec. 212: Ind. Burns R. S. (1908) sec. 47H9: Kas. (i. S. (1905) sec. 3520: Ky. St. (1903) sec. 646; La. K. L. (1904) p. 844: Me. R. 8. (1903) p. 479: Md. G. L. 32 ACCIDENT INSURANCE FOR WORKISOMES ana, Iowa, Kentucky, Mississippi and North Carolina per- mit the organization of accident companies with a capital stock of $50,000.' In many states the capital must be fully paid in in cash before the company may issue policies. In others the company may begin business when one-half or even one-fourth of the capital has been paid in but is required to have the balance fully paid up within one year, otherwise the directors become personally liable for losses on new policies written after that time. The capital stock is invested in interest bearing securities and deposited with a state official or held in trust by the treasurer of the com- pany as a guaranty for the payment of policy claims and is only to be resorted to whan the premiums received and the other income of the company are insufficient. 2 Disposition f fn<:, sec. 11; Mich. Ins. Law (1907) sec. 42t>: Minn. L. Of 1907, C. 321; Miss. Code, (H'Oti) sec. 2013: Mont. C. C. (1895), sec. (HHi. par. t>; N. Mex. Coin. Laws. (1S!>?), sec. 21C9: N. Y. R. S. & 44; W. Va. L. of 1907, c. 77. sec. (51: Wy. L. of 1907. c. 9S. s cf. la. Code, (1897). sec. 1702: Kas. G. S. (1905). sec. 3531: Xebr. Cobbey's G. L. (1907). sec. Ci431: X. I). C. C. (1905), sec. 4427; Wash. L. of 1895, i>. 159 sec. 23. 3 34 ACCIDENT INSURANCE FOR WORKWOMEN clared by statute to be the unearned premium; and is sup- posed to represent that portion of the premiums collected which corresponds to the unexpired portions of the poli- cies in force. 1 This fund is invested in interest bearing securities and is drawn upon to meet policy claims only when the cash funds are exhausted. Other Reserves and fronts. If the company maintains a contingency reserve or surplus a certain percentage of the income will then be credited to this fund, unless the company transacts employers' liability insurance. In that event it is required by law to provide for its liability re- serve according to the method described under that title in a preceding section before setting aside any other funds. Whatever is left, if anything, after retaining cash enough to cover all claims due and unpaid and all interest or other accounts payable to the company but not settled, constitutes profits which may be distributed to the stock- holders as dividends by order of the board of directors. The statutes of practically all the states specify that divi- dends shall not be declared except from surplus profits and that in estimating such profits the reinsurance reserve and cash funds enough to cover all unpaid claims and all interest and other accounts payable to the company but still unsettled must be counted as liabilities- 2 Capital Impaired Ifoir Mad? (Hood. If, after bal- ancing the accounts of a company according to the prin- ciples previously set forth, it is found that the liabilities exceed the assets, exclusive of the capital account, to the 1 !*ee also Dawson, Elements of Life Insurance, p. 84. * For illustration of this point, cf. Cal. C. C. (1906) sec. 429: La. R. L. (1904) p. H4il; Md. '. R. S.- (1899), sec. 3182. 36 ACCIDENT INSURANCE FOR WORKWOMEN ance on which the premiums shall amount to not less than $100,000 of which $50,000 shall have been paid in cash, and notes of solvent parties, founded upon actual and bona fide applications for insurance shall have been received for the remainder. 1 In Illinois a mutual employers' liability company may be organized but may not commence busii ness until at least 25 applications for insurance have been made; the total amount of insurance applied for must be based on a pay roll of not less than an aggregate annually of $25,000,000 in wages, and the total amount of the pre- miums on insurance so applied for shall not be less than $15,000, of which 25 per cent must have been paid in in cash and the balance secured by notes on bonds, or both. 2 In Colorado mutual companies are required to have a guarantee capital of at least $50,000, which consists of personal notes on which a dividend of not mora than eight per cent may be paid. This fund is provided purely for guaranty purposes, and cannot be drawn upon except when the cash funds have been exhausted and when the contin- gent mutual liability of policy holders has been drawn upon and found insufficient to meet the losses of policy claims. 1 * In a few other states the maintenance of such a capital account is a matter of discretion on the part of the company. However, a guarantee fund does not change the character of a mutual company to that of a stock com- pany/ ' Ky. L. or 1908. c,6. a 111. L. of 1905. p. 293, sec. 5. * Colo. L. of 1907. e. 193. sec. 59. 4 Cooh'y Briefs on Ins. Law, v. I. p. 51. For other statutes relating to incorporation and capital reoolroinents of mutual insurance companies, seeCal. C. C. (1906). sec. 437.8 and 9: Colo. L. of 1907. c. 193. sec. 25; Del. Laws, v. 22. c. f. sec. 4. Idaho C. C. <1901). section 2223: Ind. Rums. A. 8. (MOB), sec. 4710: la. Code (1897). sec. 1S92; Ky. St. (1903), sec. 647: La. R. L. (1904). p. 851: Mass. L. of 1907. c. 570. sec. 34: Mich. Ins. Law (1907), see. 1 and US: Mo. A. S. (l!X)ti). sees. 7852. 787^ and 7S79: Mont. C. C. 1895, sees. 060 and 653: Xebr. Cob>ey's (i. L. (1907). sees. f I^mids. Mutual companies may charge and collect upon their policies a full mutual premium in cash or in notes, and may fix in their by-laws the contingent mut- ual liability of their members for the payment of losses and expenses not provided for by their cash funds. 1 The con- tingent liability of a member usually cannot be less than a sum equal to and in addition to the cash premium writ- ten in the policy. It may be two, three or four times that amount but whatever it is it must be plainly and legibly stated on the policy. 2 It is this fact of fixing the conting- ent mutual liability of the members which distinguishes a mutual level premium company from an asssessment com- pany. Each policy holder in a mutual company is in reality a stockholder in the company. As a policy holder he has paid a fixed premium for his insurance. As a stockholder he has assumed a definite liability for the solvency of the company and is entitled to share in the profits according to the liability assumed. 3 Disposition of Funds. Mutual companies are required to maintain a reinsurance reserve of the same character and computed in the same way that stock companies are. Cash must also be reserved to cover unpaid claims and in- terest and other accounts payable to the company, but un- settled, before dividends may be declared.* A fund may be accumulated from the profits and invested according to 1 For a typical statement of the law in this respect see Mass. L. of 1907, c. 576, sec. 48. 1 For other laws bearing on this subject cf. Colo. L. of 1907, c. 193, sec. 71; 111. L. of 1905, p. 293, sec. 6: la. Code (1897) sec. 1705: Mass, L. of 1907, c. 576. sec. 50: N. H. P. 8. (1901) c. 168: N.Pa. C. C. (1905) sec. 4440; Pa. .Ins. Law. (1905). p. 68: also 22 CYC 1424. * Cooley Briefs on' Ins. Law, v. 1, pp. 51'and 52. 4 cf. 111. L. of 1905, p. 293, sec. 18 and 21: Ind. Burns S. (1908) sec. 4664: la. Code (1897) sec. 1714: Mich. Ins. Law (1907) sec. 426: Mo. A. S. (1906) sec. 7881 and 7882: N. Da. C.C. (1905) sec. 4441: X. H. P. S. (1901) c. 168, sec. 5; Pa. Ins. Law (1905) p. -68. 88 ACCIDENT INSURANCE FOR WORKINOMEN law to take the place of notes given in addition to cash premiums as security for the payment of policy claims. Such notes may not be released until the amount so accu- mulated is equal to the minimum amount of capital re- quired of stock companies, but the liability of each note decreases proportionately as the profits are accumulated. 1 In other states a permanent fund may be set aside from surplus profits by reserving 20 psr cent of the net surplus until such fund is equal to 2 per cent of the insurance in force, after which the whole of the net profits must be distributed. 2 Capital of a Mutual Company Defined When Assess- able. In the statutes of Illinois the capital of a mutual company is defined in the following language: "The amounts received for cash premiums and payments to- gether with the investments and accumulations thereof re- maining on hand at|any time shall constitute the actual funds of such company; the amount due on premium notes shall constitute the contingent fund, and the aggregate ot such funds shall constitute the capital of such company." 3 The statutes further provide that whenever a mutual company is not possessed of cash funds above its reinsurance reserve sufficient to pay its incurred losses and expenses it may make an assessment for the amount needed, upon the members liable for assessment in proportion to their sev- eral liability. 4 1 cf. 111. L. of 1905. p. 293. sec. 21; Ind. Burns. A. 8. (1908) sec. 4652. 4o54 and 4660: la. Code (1K97) sec. 1704; Ky. St. (1903) ec. 685: Nebr. Cobbey's G. L. (1907) sec. 6433: N. Da. C. C. (1905) sec. 4427, 4441 and 4442. N. Mex. Com. Laws (1897) sec. 2111. 1 Particularly X. Da. C. C. (1905) sec. 4441. ' III. Laws of 1905. p. 293. sec. 9. 4 111. L. of 1905 p. 293. sec. 6: la. Code. (1897) sec. 1733: Mass. L. of 1907. c. 576; sec. 50: Mich. Ins. Law. (1907) sec. 42tk N. Da. C.C. (1905) sec. 4444. ACCIDENT INSURANCE FOR WORKINGMEN 39 Assessment Companies incorporation and Capital. Insurance companies may be organized to transact business on the assessment or co- operative plan, either with a capital stock or on the mu- tual basis.- The procedure for incorporation is just the same as for stock or mutual level-premium companies. In Maryland 1 assessment companies may issue policies for more than $1,000 provided they have a capital stock of $50,000, which must be invested in interest bearing securi- ties and be deposited with the state treasurer. Colorado re- quires that a guaranty fund of $10,000 in cash or securi- ties be provided" and in Alabama such companies may be organized on the stock plan with a minimum capital re- quirement of $5,000. 3 The more usual method is that five or more parsons incorporate as a mutual company but that before the new corporation may issue any policies it must have bona fide applications for insurance from a definite number of parsons and must have a certain amount of cash collected from these applicants and credited to the mortu- ary fund. The number of such applications required var- ies from 100 to 500 and the amount of cash required to be collected from $1,000 to $5,000. Ten states require that one full advance assessment be paid in cash. 4 Reserves. Assessment companies differ from level- premium companies very essentially in the matter of re- 1 Gen. Laws 1903. Art. 23, sec. 176. a Laws of 1907, c. 193, sec. 71. 1 Civil Code, 1907, sec. 3575. * For stafutes relating 1 to conditions of incorporation see Ala. C. C. (1907), sec. 3574: Cal. C. C. (19015), sec. 453e: Colo. L. of 1907, ch 193, sec. 71; Conn. G. !?. (1902). sec. 3572; Fla. L. of 1905, c. 5459; 111. B. S. (1905), C. 73, sec. 210; Irid. A. S. (1908), sec. 4739: la. Code (1897). sec. 1787: La. R. L. (1904), p. 880: Me. R. L. (1903). p. 497: Md. G. L. (1904), art. 23, sec. 176: Mass. R. L. (1902), ch. 120. sec. 25; Mich. Ins. Law 1907. sec. 01156; Minn. G. L. (1905). sec. 1698: Mo. S. (1906), sec. 79>)2: Mont. C. C. (l;t:>), st>c. 720; Nebr. G. L. (1907), sec. 6468 and 6471: N. Y. R. S. & G. L. (1901). p. 1884: (). A. S. (1908), see. 3630: Pa. Ins. Law 1905, p. 52: So. Da. C. C. (1908), s c. 724: Tenn. L. of 1903, ch. 574; Texas L. of 1903. ch. Ill: Utah S. (1903). sec. 405; Va. L. of 1906, p. 147: Wis. S. (1898) se3. 1955a; \Vy. R. S. (1899), sec. 3277. 40 ACCIDENT INSURANCE FOR WORKWOMEN serve funds. It was noted in the analysis of the level- premium companies that they are required by law to keep large reserve funds but an examination of the laws relat- ing to assessment companies shows that this subject is not mentioned in some statutes. In six states the Tceeping of a reserve is optional 1 and in twenty others it is obligatory but the. fund required is very small in comparison with that of a level-premium company. 2 Seven states require a reserve equal to the amount realized from one periodical call or assessment; others require one equal to the maxi- mum policy in force while others require that a certain per cent of eacli assessment shall be set aside for this pur- pose until a reserve equal to two dollars for every $5,000 of insurance in force has been accumulated.'* After that time any cash on hand must be used to reduce future as- sessment. Mr. Miles M. Dawson, an eminent New York actuary, in his treatment of assessment life insurance em- phasizes the fact that this question of reserves marks the essential difference between an assessment and a level pre- mium company, 4 and Mr. Chas. E. Gross, in a lecture at Yale University refers to this same feature of assessment insurance as one of its principal sources of weakness. 1 For laws in which the maintenanc of a reserve is optional see Conn. G. S. (1902) sec. 3607; Ga. Ins. Law (1905) p. 15. sec. 14; N. H. L. ot 1897, c. 38; Ore. St. (1908), sec. 3751; Tex. L. of 1905, c. 125: Wls. St. (1898). sec. i;unn. 3 Laws of other states relating to reserves of assessment companies. Ob- ligatory. Ala. C. C. (1907). sec. 3588: Cal. C. C. (1906), sec. 453n; 111. L. of 1893. p. 117. sec. 12: Ind. Burns A. S. (1908). sec. 4741); Kas. G. S. (1906), sec. 3644; Ky. St. (1903). sec. 662: Me. K. L. (1903), sec. 4i*t: Mass. K. L. (1902), c. 120, sec. 10: Mich. Ins. Law (1907), sec. 71 and 94; Minn. It.L. (1905), sec. 1701; Mo. A. S. (1906), sec. 7905; Mont, C. C. (1895). sec. 724: N. H. L. of 1897, c. 38; No. Car. K. L. (1905). sec. 4792; N. Y. K. S. (1901), v. 2, p. 1888: O. Bates A. S. (1908). sec. 36301: R. I. Ins. L-iw, (1907). P. 45: Tenn. L. of 1897, c. 127, sec. 7; Va. L. of 1906. j>. 147; Vt. St. (1894) sec. 4184. 1 For reserves of this amount see 111. L. of 1893. p. 117, sec. 12: Ind. Burns A. S. (1908). sec. 4719: Minn. R. L. (1905), sec. 1701: Mont. C. C. (1895), sec. T24: X. V. R. S. (1901), v. 2, p. 1888: O. Bates A. S. (1908), sec. 36301; Tenn. L. of 1897, c. 127, sec. 7. 4 Dawson Assessment Life Insurance, p. 8. Gross Yale Insurance Lectures, v. 2, p. .332. ACCIDENT INSURANCE FOR WORKWOMEN 41 Of her Jjeyal Limitations and Exemptions. Assessment companies are usually exempt from the general insurance laws of the state and subject only to those relating specif- ically to them. However they are usually required to ren- der an annual statement. In some states the amount of the benefits payable on any one policy is limited to the amount that can be realized from one periodical call or assessment 1 and in other states the company is required to furnish a statement showing- that the amount that can be realized from any one periodical call or assessment will be equal to the benefit payable in the maximum policy issued." Maryland prohibits any assessment company from issuing a policy for more than &-10UO unless it have a capital stock or other available assets to the amount of $50, 000. A Fraternal Beneficiary Associations J^ec/al Regulation. Until within recent years there has been almost no legal regulation of fraternal beneficiary associations except to specify in one short section that they are exempt from the insurance laws. However the National Fraternal Congress in 1900 prepared and pub- lished a mortality table based on the experience of a num- ber of the larger fraternal orders in America and also pub- lished and recommended the adoption of a uniform bill ^1897) for the regulation and supervision of this class of insurance organizations. 4 Either in whole or in part and witli many minor modifications in particular instances this uniform bill has now found its way to the statute books of a number of states and constitutes a very signiti- 1 For a limited policy see Nebr. Cobhey's G. L. (1007), sec. 6468, 6471 and 6681; O. Bates A. 8. (15)08). sec. 3030; Texas L. of 1905, C. 125. a cf. also Conn. G. L. (19J2), sec. 3572; La. It. L. (1904), i>. 880: Minn. R. L. -. 724: Va. L. of 191)6, p. 138; Wis. St. 189S, ser. 1955a. Gen. Laws (1904) Art. 23, sec. 176. 4 La ndis Frienflly Societies and Fraternal Orders, p. 76, et sea. 42 ACCIDENT INSURANCE FOR WORKWOMEN cant part of the insurance legislation which relates to as- sessment companies. In the main this legislation in- cludes a definition of fraternal beneficiary associations, the substance of which has been given in a previous sec- tion of this bulletin, and a specification of their powers and limitations especially with referenca to incorporation, obligations that may be assumed, and bases on which as- sessments may be charged. Annual statements of the finances are also frequently required. Laws modeled after the uniform bill usually exempt fraternal companies from all other insurance legislation, present and future, unless they are specially mentioned in the law and many states also specify that even the law relating to fraternal orders does not apply to any society which limits its bene- fits to $200 and its membership to any particular trade or calling or to the employees of a particular person, firm or corporation. In this way most mutual aid associations such as that of the International Harvester Company are exempt from any state regulation. 1 Incorporation. The procedure for incorporation is just the same as for any other kind of insurance company. Any number of persons usually not less than five or nine may form the corporation but policies may not b3 issued until a certain number of applications for membership have been received and one advance assessment accord ipg to the by-laws has been paid by each such applicant to be placed to the credit of a mortuary fund. The number of applicants required varies from 200 to 500. 2 1 For citations tosubject matter of the preceding paragraph see the list citations ri von on i>. 20 or sections of the statutes immediately subsequent to them. * For typical laws relating to incorporation of fraternal orders see 111. L. of 1893. p. 130. sec. 7: Kan. G. S. (1905) sec. 3*2; Mich. Ins. Law (1907) sec. 145 and 152; Xebr. Cobbev's (i. L. (1907) <-. t*>54: X. Y. It. S. (1901) v. 2. p. 1890. ACCIDENT INSURANCE FOR WORKWOMEN 43 Powers and limitations. Fraternal beneficiary asso- ciations are usually given the power to contract life insur- ance and to insure against loss of life or physical disabil- ity of the insured due to accidents or disease. They are also frequently allowed to grant old age annuities, but are generally prohibited from paying such annuities before the insured has reached the age of 65 or 70. Nebraska pro- hibits any such association from issuing a policy for more than $1,000 until it has at least 2,000 beneficial members. All such companies and associations are required to derive their funds for the payment of losses and expenses, and for the creation and maintenance of reserves from periodical calls and assessments, and some states require that a clause be written in the policy authorizing extra assessments to meet deficiencies. 1 The laws of Massachusetts provide that if the amount realized from one assessmant is not equal to the face of the policy, the benefit will be cor- respondingly reduced. 2 Several states have required that the rate of assessment be based on the mortality table adopted by the National Fraternal Congress. 3 Most fra- ternal orders are not allowed to employ paid agents except for the organizing and supervising of local lodges, but they may offer special inducements to members for the purpose of increasing the enrollment in these lodges. I For citations to most of the subject matter in this paragraph see list of citations given on page 20, or the statute sections immediately subsequent to them. II R. L. (1932), c. 119, sec. (5. 3 For typical statutes relating to mortality tables of the National Frater- nal Congress see la. L. of 1907, c. 86: Me. R. 8. (1903). pp. 501-2; Mass. R. L. (1902). c. 119. sec. 4; N. Da. C. C, (1905), sec. 4581; O. Bates, A. S. (1908), sec. 3621-22: Okla. Wilson. A. S. (1903), sec. 3249; Tenn. L. of 1905, c. 480; Wash. L. of 1901, p. 362, sec. 12; Wis. L. of 1907, c. 511. 44 ACCIDENT INSURANCE FOR WORKWOMEN The maintenance of reserve funds is optional with most fraternal beneficiary associations. 1 Maryland, however, requires fraternal companies to maintain and de- posit with the state treasurer a reserve fund of $10,000 invested in interest bearing securities, 7 and Maine requires a similar though more extensive fund. 3 In this instance the reserve must be equal to fifteen per cent of the total mortuary receipts, at least until a fund of $50,000 has been accumulated, which must be invested in interest bear- ing securities and deposited with the state treasurer. It may be drawn upon to meet death claims but for no other purpose, and may not be drawn upon when it is less than the amount of one assessment, or at least $1,000. If it is decreased below this amount it must be restored by assess- ment within six months. 1 For typical statutes relating to reserves of fraternal beneficiary asso- ciations, see Ark. Kirby's Digest (1904), sec. 4339: Mass. R. L. (1902). c. 119. sees. (5 and 7; Minn. K. L. (1905). sec. 1703; Mo. St. (1906), sec. 1408; N. Y. R. S. (1901). v. 2, p. 1897: O. Bates A. S. (1908), sec. 363119; S. Car. C. C. (1902), sec. 1830; Tenn. L. of 1905, c. 480. 9 G. L. (11903), art. 23, sec. 210. ' R. S. (1903), PP. 502-3. AVCIDENT INSURANCE FOR WORKWOMEN 45 ANALYSIS OF THE BUSINESS METHODS OF SOME FOREIGN COUNTRIES Accident Insurance in Germany /Scope of the Law. Since 1884 the German government has required that all workmen and administrative officers employed in mines, salt works, establishments in which ores are treated, quarries, pits, on wharves, and in build- ing- establishments, factories and smelting works must be insured against accidents occurring in the course of their occupations. 1 In general the compensation consists of medical treatment and 66f per cent, of wages for dis- ability after the thirteenth week. Prior to that time com- pensation for accident comes out of sickness insurance funds. Compensation up to a maximum limit of 60 per cent of the annual wage may be paid the widow, children and other dependents in case of fatal accidents in addition to funeral benefits and whatever may have been paid pre- vious to death. In its nature this is workmen's collective insurance in that it is furnished by employers and covers all the workmen in the factory or establishment. Em- ployers secure this insurance by becoming members of "Trade Associations" which in reality are insurance cor- porations organized on the mutual plan along trade lines 1 German Insurance Act of July ti, 1884, sec. 1. 46 ACCIDENT INSURANCE FOR WORKINGMEN and clothed with all the corresponding legal rights and liabilities. 1 Determination <>f Trade Lines. The German law con- templates the organization of trade associations each of which shall embrace one trade only or several allied trades, extending over the whole empire or limited to particular districts. Preliminary to the organization of the trade associations it devolved upon the administrative officials of the government to determine the particular trades or groups of allied trades for which an association would be recognized by the Bundesrath. This classification was made from information furnished by employers who were required by law to send to the lower administrative of- ficials of the district within a designated time, a statement of the articles produced and the manner of producing them. From these statements a list of all the establish- ments in a district was drawn up, arranged according to the classification of imperial statistics and stating the articles produced, the manner in which they are produced, and the number of employees who are to be insured. The list was then to be filed with the imperial insurance bureau. This work is done because competing associations are not allowed; but the employer is required to insure in the as- sociation corresponding to his industry in the district in which his establishment is situated. As the result of the foregoing restrictions accident insurance in Germany is compulsory to the extent that all employers in certain in- dustries are required to insure their workmen and that they must obtain this insurance in the association of the particular trade and district to which their industry be- a German Workmen's Insurance Act. 1884. sees. 5, 6. 9 and 10. See also Society of Comix Lejf. .lourn.. 197. v. 2, pp. 33-4. ACCIDENT INSURANCE FOR WORKWOMEN 47 longs*. Employers thereby become automatically members of a corporation and as such conduct the business of these mutual corporations according- to their own volition, sub- ject only to certain regulations of the imperial insurance bureau relating to solvency. 1 Incorporation, The trade associations are organized by the voluntary action of employers in meetings arranged for that purpose. By-laws are drawn up which in general must fix the name and seat of the association; the manner of selecting the executive committee and the extent of its powers; the calling of the general meeting; the voting of members; the principles on which officers shall act in ar- ranging the classification of the danger tariff, the pro- cedure in case of changes in establishments or changes of employers; the consequences of a stoppage of work in establishments, and more particularly, the manner of mak- ing certain the payment of contributions of employers whose establishments close; the handling and auditing of the yearly accounts and the manner of exercising the powers granted the association for the purpose of prevent- ing accidents and inspecting establishments. When the trade association has thus completed its organization and obtained the consent of the Bundesrath it is in full work- ing order and may begin business. "The consent of the Bundesrath may be refused (l) if the number of establish- ments for which the trade association is to be formed, or the number of workmen employed in them, is too small to guarantee the ability of the association permanently to fulfil its obligations in respect to insurance against ac- cident; (2) if establishments are excluded from the trade 1 For subject matter of preceding paragraph cf. German Workingmen's Insurance Act, 1884, sec. 11, and Jour, of the Society of Comparative Legis- lation, 1897, v. 2, pp. :>9-44. 48 ACCIDENT INSURANCE FOR WORKWOMEN association, which, because of their small number or the small number of workmen employed in them, can not form a solvent association of their own and can not be prac- tically assigned to another association; (.3) if a minority opposes the formation of the trade association and offers to form, for specific occupations or districts, a separate association deemed to be solvent." Provision is made in the law for the organization of the trade associations by the imperial insurance bureau in those districts where the employers do not take the initiative in this matter them- selves. ' Pension Claims How Liquidated. An accident caus- ing death or total disability gives rise to a pension or in- demnity that may run for a number of years and thereby becomes a fixed charge on the association throughout the period of its duration. There are two ways of meeting these claims and the way in which they are met very largely determines the character and the amount of the reserve fund that must be maintained by the association. The first method is to charge 1 as a liability for that year the capital value of the pension, estimated according to actuar- ial principles, and to carry to the reserve fund an amount sufficient with its interest accumulations to meet all the future payments required by the pension claim. The con- tributions collected therefore must be large enough to supply the amount of cash necessary to be placed in the reserve fund. In other words according to this method an association estimates by means of actuarial principles its entire liability for a given pension as soon as it be- comes a claim and collects in its cash contributions for that vear an amount sufficient with the interest accurnu- 1 lierman Workmen's Insurance Act, 1*84. sees. 12. 15 and 17. ACCIDENT INSURANCE FOR WORKWOMEN 49 lations to liquidate all of the pension payments just as they fall due. The advantage of this method is that it is a scientific way of providing for the payment of claims as they accrue and the objection that is sometimes offered to it is that it requires the maintenance of large reserve funds. The other method is to charge as a liability for the year only that part of the pension which is payable during that year and to leave the payments falling due in subsequent years to the receipts of those years. In this instance the contributions levied during the first years of the existence of an association are small but as the association grows older and the number of its pension claims accumulate the contributions levied must be increased to meet the expense of accumulated pension claims. Consequently it can be foreseen that the older the association becomes the larger the contributions that are levied upon the members must be. The advantage of this method is that it does not require the accumulation of such large reserves but it is objected to because members who join the association in the later years of its existence are called upon to help pay pensions that became claims before they became members. 1 Reserve Funds. The German government has adopted the principle of the second method described in the pre- ceding paragraph and requires a reserve fund to be created and maintained to offset the increasing contributions re- quired and to bring about a state of equilibrium in the charges for pension payments. This fund is computed ac- cording to statutory rule by setting aside 300 per cent of the amount paid out in indemnities during the first year; 200 per cent, in the second; 150 in the third; 100 in ths fourth; 80 in the fifth; 60 in the sixth; and thereafter until 1 Willouphby. Worklngmen's Insurance, pp. 70, 71 and 104. 4 50 ACCIDENT INSURANCE FOR WORKWOMEN the eleventh year 10 per cent less each year. After the close of the first eleven years, the interest of the reserve fund is to be added to the principal until the fund shall have reached twice the sura annually needed by the asso- ciation. Thereafter the interest of the reserve may be used to decrease the contributions. The purpose of this reserve is to place the finances of the association on such a basis that the contributions made by the members would need to be large enough only to cover the actual payments for current losses and expenses for the year and to obviate the objection that otherwise new members would have to assist in paying losses which had become claims on the association before they became members. 1 Contributions How Determined. The entire business management is vested in a general meeting of the associa- tion, which may delegate part of its duties as an executive committee according to its by-laws. The management in- cludes such duties as the classification of industries ac- cording to the hazard involved, the inspection of estab- lishments, the adoption of measures for the prevention of accidents, the determination and assessment of contribu- tions, and the administration of funds collected. Section 28 of the law of 1884 provides that the general meeting of .the association shall establish rules for classifying estab- lishments according to the danger of accident in them, .and for determining the amount of the contributions in different establishments according to the danger tariff. The .assignment of establishments to the different classes in the danger tariff is done by the officers of the association in the manner prescribed in the by-laws. Employers have 1 German Workman's Insurance Law, 1884, Sec. 18; Willou?hby. Work- ingmen's Insurance, pp. 70-1. ACCIDENT INSURANCE FOR WORKWOMEN 51 the right to appeal from the assignment made to the im- perial insurance bureau. When it is recalled that the em- ployers themselves make these by-laws and choose their own officers under them, it will be readily understood how completely the actual management of the business of the insurance institutions is left to the men who, nominally at least, carry burden. Provision is also made for the revi- sion of the danger tariff at least once in five years, and for the union of two or more associations for the purpose of joint action, in part or in whole in paying indemnities. 1 Classification, of Industries and Assessment of Contri- butions. The Society of Comparative Legislation has published a description of the way in which industries are actually classified by the German trade associations and of the manner in which the assessment of contributions is made. The paragraphs relating to these subjects are quoted here in full. From this description it will be readily seen that accident insurance in Germany is assess- ment insurance in a mutual corporation organized along trade lines." "According to the scheme of the act of 1884, the sums re- quired for the payment of the compensation awarded and the current expenses of administration of the association, were to be raised and levied among its members in such a way that each employer should pay a fair equivalent to the risk which the as- sociation was undertaking on his behalf. Thus in calculating the contributions of the individual employer two factors required to be taken into consideration: the number of workmen employed by him, and the extent of the danger to which they were exposed during their work. It was proposed to effect this by assigning to each establishment attached to the association a number, called a co-efficient of risk (Gefahrenzifl'er or Beitragsfuss), which was to correspond to the burden per unit of wages paid, which, in ' German Workmen's Insurance Act. 1884. Sees. 17 and 28. 2 Journal of Society of Comparative Legislation, 183", v. 2. pp. 39-42. 52 ACCIDENT INSURANCE FOR WORKWOMEN consequence of the accidents occurring in it, the establishment was likely to lay upon the association. The contribution due from the employer to the association would then be proportional to the, number obtained by multiply ing the total amount of wages paid in the establishment belonging to him by its co-efficient of risk." "The tables of risks of the different associations naturally dif- fer very considerably, but they must agree in dividing the estab- lishments into classes according to the elements of danger attend- ing different kinds of work. Thus trades in which steam-engines are used will generally bear a higher co-efficient than those in which hand-power alone is employed. Within the limits of the classes, subdivision is allowed according to the greater or less extent of the danger. Thus a business only using one small steam engine, within range of which few of the workmen need come, will be rated lower than a business of the same kind with a shop full of engines. Regard will also be haa to the extent to which in the establishment in question the general rules formed for the prevention of accidents are complied with, but it is not permitted to rate a business higher on account of neglect in complying with special safety regulations. Such neglect is pun- ished, if at all, in another way." "The assessment of the contribution of the individual em- ployer is made by the general board, and payment is due as soon as it is communicated to him. He may dispute it before the board if he is dissatisfied, and he has also a limited right of ap- peal to the insurance office, but only on the ground of some error in calculation, or of some mistake as to the amount of wages paid, or the co-efficient of risk of the establishment. But the employer cannot appeal on either of the last two grounds if he has made default in supplying the necessary in formation, to the association. The right of appeal seems restricted, but in reality it covers all the ground. The other items upon which the calculation i& based are such as concern the members of the association gen- erally, and the proper place to dispute them is the general meet- ing of the association or section when the yearly accounts are presented for consideration and approval." "The method by which the annual budget of the associations is made up and balanced must next be explained. The compensa- tion due to persons injured, or their relatives, is paid as it falls. ACCIDENT INSURANCE FOR WORKINGMEN 53 due by the post-office. Thus the state, through the post-office, guarantees its payment, and advances the sums of money re- quired. The accounts of the associations are made up yearly, and the necessary amount levied upon the members in a single pay- ment. "Within eight weeks after the conclusion of the financial year the postal authorities forward to the association a statement of the payments made on its behalf during the year. The sum of these, together with the expenses of administration and the sum, if any, to be placed to the reserve fund, gives the total sum to be raised." "The members of the association on their side, within six weeks of the end of the financial year, forward a statement showing the number of insured workmen employed during the year, the total amount of wages paid, and the co-efficients of risk at which their establishments are rated. Only one-third of the excess above 1,200 marks of the yearly earnings of individuals is taken into account. In default of such a statement one is drawn up by the confidential agents. Care is taken in this connection to avoid all unnecessary inquiry into the business of the employer, consist- ent with retaining the power of verifying his statements. Thus he is not compelled to give the names or wages of individual workmen, and in practice, if it is necessary to examine his books, he can have it done by some one from a distance who is not a 'trade rival." Accident Insurance in Austria /Scope of the Law. In 1887 Austria adopted a compul- sory accident insurance law which embodied the principle of the German law but which differs from the German law in many of the details of organization and administration. The law includes all workmen and administrative officials employed in transportation, manufacturing, mining, quar- rying, and building, and all occupations in agriculture and forestry in which power machinery is used. Compen- sation is paid for all bodily injuries occurring in the course of employment and amounts to all expenses for medical 54 ACCIDENT INSURANCE FOR WORKWOMEN treatment and 60 per cent of the average daily wages for period of disability. In case of death funeral expenses and a pension for the widow and children not exceeding 50 per cent of the average wages. 1 OrffnnizHtioii. In general the insurance is provided in an "insurance institution" which is a corporation "under governmental supervision in accordance with the limita- tions of other insurance companies and the special provi- sions of this act." Section 9 of the Act of 1887 says that "the insurance prescribed under section 1 shall be under the management of a special insurance institution organized for this purpose and resting upon the principle of mutuality." There are seven of these institutions which are organized on a territorial basis corresponding to the political divisions of Austria instead of along trade lines as the trade associations of Germany. The proprietors of establishments in which workmen are required to be in- sured are declared by law to be members of the institu- tions although proprietors who have insured their em- ployees to the same extent in some other company to which they pay as large a contribution as they would be required to pay as members of the insurance institutions, may be released from such membership by permission of the Min- ister of the Interior. Each institution prepares its own by-laws after a model form published by ministerial decree which in general provide for the voting powers of members, the choice of representatives of proprietors and insured workmen, assessment periods and the form and content of the declarations, reports and accounts which are to be made by proprietors and sent in to the insurance institutions. The management of the business is conducted by a board 1 Hee Austrian Workmen's Insurance Act 1887. See. 1. 5.0.7 and 8. ACCIDENT INSURANCE FOR WORKINGMEN 55 of directors, one-third of whom are representatives of the proprietors; one-third, representatives of the workmen and one-third persons familiar with industrial conditions of the district, who are appointed by the Minister of the Interior. An examination of the Austrian law shows that accident insurance in Austria is compulsory to the extsnt that all employers in certain industries must insure their workmen against accidents occurring in the course of their employ- ment and that with cartain exceptions this insurance must be obtained from mutual corporations organized by the government to correspond to the political divisions of the country but managed for the most part by the employers and workmen themselves. 1 Classification, and Inspection of Industries. The law provides that all the various establishments shall be divided into different classes of risk in which there are several suc- cessive grades according to the danger of accident which they present and that the particular grade or relative position occupied by an establishment shall be designated by a number. The number used to designate the most danger- ous class is one hundred and all others are fractions of this number, i. e. percentages which have been termed "Co-effi- cients of 'Risk." The general classes of establishments are fixed by the government but the assignment of a particular co-efficient to an establishment is done by the insurance institution in which the workmen are insured. The in- spection of establishments is done by the local factory in- spectors at the request of the insurance institutions and the expenses of such inspection are considered as part of its expenses of management. An appeal in regard to the classification of the industry and the assignment of a co- 1 See Austrian Workmens Insurance Act. 1887, sees. 9, 13, and 57. 56 ACCIDENT INSURANCE FOR WORKWOMEN efficient of risk may be taken to the provincial administra- tive authorities (politische Landesbehorde) and finally to the Minister of the Interior. 1 Determination of the Insurance Contribution. With- in fourteen days of the expiration of a period set by the Minister of the Interior all proprietors subject to the Act are required to make a report to the insurance institution of the district in which their establishment is situated. This report contains a statement of the object and nature of the establishment, the number of insurable persons there employed and the amount of their yearly earnings to be taken as the basis of their insurance. In the case of new establishments the date of opening must also be re- ported. A preceding section of the law prescribes the method by which the amount of wages shall be determined and fixes the yearly wage at three hundred times the aver- age daily wage. This method as it has been interpreted and put into actual operation by the insurance institutions and administrative officials of the government, is of very great significance in the classification of establishments because it reduces the various establishments to a common basis for determining the amount of hazard involved by ascertaining the actual amount of labor expended in a given plant in the given period instead of the number of laborers employed. In this way the Austrians are enabled to account for the additional element of danger involved in an establishment which employs eight men ten hours a day on a piece of work over one which employs ten men eight hours a day on a similar piece of work. The follow- ing description of this method is taken from Prof. Wil- loughby's Workingmen's Insurance: "Each industrial 1 Austrian Workmens Insurance Act. 1887. sec. 14. 18 and 28. ACCIDENT INSURANCE FOR WORKWOMEN 57 establishment, in making its report to the insurance de- partment, is required to show, not only the total number of persons employed, but the total number of hours of labor performed. With this data, it is possible to calcu- late the number of workingmen required to perform the same amount of labor if working full time for 300 days in the year. This number of complete workingmen is, then, the number used for purposes of comparison with the num- ber of accidents. There is no doubt but that this method constitutes a radical improvement over the German prac- tice. It is evident that in this way it is possible to calcu- late, in a much more scientific and accurate way, trade risks of accidents, than if no account were taken of the time that the establishments were not in operation, or were only running part time." 1 Having thus ascertained a basis for the determination of contributions the officers of the insurance institutions determine the total amount necessary to liquidate the. current losses and expenses and amount necessary to maintain the reserves and assess the members of the institutions in proportion to the degree of risk in their several establishments. 2 Jteserve -Funds. The Austrian law provides that each insurance institution shall set aside a sum each year to be used as a reserve fund and that any surplus accruing from the management of the business may be applied to this fund but that in no instance shall the reserve fund amount to more than 10 per cent, of the funds necessary for the liabilities of the insurance institution. Two-thirds of this reserve constitutes a special reserve for the institution it- self and one-third is credited to a common fund for the 1 Willousrhby Workwomen's Insuiance. p. 106. 3 Austrian Workmen's Insurance Law, 1887, sees. 6, 18, 19, 20, 21 and 22. 58 ACCIDENT IXSURAyCE FOR WORKINGMEX benefit of all the insurance institutions. The reserve fund cannot ba drawn upon except in case of a deficit in the yearly balance and the special . reserve must have been ex- hausted before the common reserve can be drawn upon.* In addition to the foregoing reserve the capital value of all pensions estimated according to actuarial principles, i collected in the contributions of the year in which such, pensions become a claim on the institution and is set aside for the liquidation of pension payments as they fall due. This is the first one of two methods of settling pension claims that were described in a preceding section (page 48). The following quotation is an explanation of this fund as given by Prof. Wil lough by: "Finally, it is necessary to say a few words concerning the sys- tem adopted by Austria for the liquidation of the indemnities to which accidents give rise. It will be remembered that, in Ger- many, each year is made to pay only the sums actually disbursed during the year, without regard to the time when such liabilities were incurred. In Austria, however, the more scientific system, was adopted whereby each year is required to provide for the liabilities incurred durinir its course, though their complete liqui- dation may not be accomplished for a great many years. Upon an accident oceurring,therofore,the amount necessary for the com- plete payment of the pension to which it gives rise, is calculated according to tables of mortality, and then carried to the special insurance fund for the payment of pensions. The consequences of this system are, that in the beginning, the payments on ac- count of pensions are much larger than they would be under the German method. On the other hand, these payments should re- main fairly constant in amount, instead of constantly increasing until a period of equilibrium is reached, as occurs under the lat- ter system. -' 1 Austrian Workmen's Insurance Law, 1SS7. *ec. 15. 4 Will.>utfhby Workinifmen's Insurant-, p. 104. ACCIDENT INSURANCE FOR WORKWOMEN 5 Insurance in the Friendly Societies of England Closely Akin to fraternal Orders. The Friendly Soci- eties of England furnish another very interesting and practical illustration of an effort to supply certain and practical relief from the burden of accidents and sickness in industrial occupations and the experience of these soci- eties is of almost inestimable value in any attempt to arrive at a sound actuarial basis for accident and sickness insur- ance. They have still another very practical bearing on the American situation because they are so closely akin to our assessment insurance in fraternal beneficiary associations. The limits of this bulletin do not permit any detailed de- scription of the organization and purposes of these societies but a very complete and excellent account of them includ- ing a careful explanation of the efforts to get their insur- ance departments on a sound financial basis may be found in English Associations of Workingmen by J. M. Baern- reither. Government Supervision. The Friendly Societies are not under any form of government supervision unless they are registered under the act of 1896. Registration is wholly a voluntary arrangement on the part of the society. The law of 1896 provides that there shall be a chief registrar of friendly societies who must have been a barrister of not less than twelve years standing and who shall be supplied with such assistants and actuaries as the duties of his office may require. His chief duties are to collect, publish and circulate 'such information on the subject of the statistics of life and sickness and the application thereof to the busi- ness of friendly societies and such particulars of their re- turns and valuations and such other information" as he mav deem useful to the members of the societies. In ad- 60 ACCIDENT INSURANCE FOR WORKWOMEN dition to the foregoing he is required to cause to be con- structed and published tables for the payment of sums of money on death, in sickness or old age. The adoption of these tables is wholly optional on the part of the societies. 1 Registration. Any seven or more persons may become a registered Friendly Society by following out the pro- cedure set forth in the law. Societies may be registered for a number of purposes but the principal one is for the relief or maintenance of the members and their families and dependents in the event of certain contingencies. Cer- tain legal advantages and privileges accrue to registered societies just as to incorporated companies. They are also required to have a registered office where communica- tions and notices may be sent, to submit their books an- nually to a public auditor or some one legally authorized to audit them, to render an annual statement of receipts and expenditures, funds and effects of the society, to make a valuation of their assets and liabilities once every five years; and to furnish gratuitously every member or person interested in the funds of the society, an annual statement. Valuation. Registration is optional on the part of a friendly society, but a valuation of its accounts once every five years is compulsory for all societies which have regis- tered. The valuation must be made by a valuer chosen by the society, and the report must include a statement of the assets and liabilities, showing the benefits assured and the contributions receivable by the society and of its funds and affects, debits and credits. This valuation is the es- sence of all the governmental regulation of the English Friendly Societies. Its purpose, nature and extent have 1 See English Act for the Bejristration of Friendly Societies 1896. 59-60 Viet. No. 25. ACCIDENT INSURANCE FOR WORKWOMEN 61 been very clearly expressed by Mr. Baernreither in his English Associations of Workingmen, as follows: "The investigation required by a valuation of this kind is, as we have seen, a comprehensive one. Starting with an observa- tion of the experience of the society during the last few years, it examines the management, takes into consideration the occupa- tions of the members and their habits of life, the influence of local relations and the state of industry, then calculates each branch of insurance separately, and finally arrives at a result, which depends not only on a mathematical valuation but on an analysis of all the elements that effect the stability and growth f the society, on an anatomy of all its vital organs. The younger Mr. Neison, in his recent work, has expressed this thought very accurately. 'A valuation properly conducted,' he says, 'presents the means of correcting any misconceptions of the risks formed at the starting of the society, and this is its most important feature. The purpose of valuation is to maintain, as it were, the touch between the risks as they are and as they are assumed to be in the bases of the contracts, and periodically to adjust such differences as may arise. Due effect is thereby given to all local circumstances and features, which may be special to a par- ticular society; and the skill of the actuary consists not in the performance of so many multiplications of the number of mem- bers by the values of specific benefits, for any one with a slight mathematical knowledge can effect this, but in drawing proper deductions from the varying circumstances of each society as ex- hibited in its records, and in knowing how much force may safely be attributed to each particular variation in its working This constitutes the mainspring of an efficient valuation. 1 1 Baernreither English. Associations of Workingmen, p. 270. 62 ACCIDENT INSURANCE FOR WORKWOMEN METHODS OF CONDUCTING STATE INSURANCE State Insurance in Maryland Legal Liability of Employers. So far but one effort has been made to operate a system of state insurance in the United States. This system was, nominally at least, a voluntary one but on account of constitutional defects it was in operation for such a short time that very little can be inferred in regard to its economical aspects. 1 In 1902 the Maryland Legislature passed an act 2 which made all employers in certain specified industries liable under the Public General Law for damages to an employee in- jured as the result of the employers' negligence, abrogated the fellow servant rule and specified that when the injury was due to the joint negligence of both the employer and the employee then the employer should be liable for one- half the damages sustained by the injury or death. The act applied to all individuals, partnerships and corpora- tions, private or municipal, engaged in operating any coal or clay mine, quarry, and steam or street railroad, also to incorporated towns, cities or counties, or the contractors 'A detailed statement of the business transacted under this act may be found in Bulletin, No. 57, r. s. Bureau of Labor, pp. 645 648. 3 Laws of 1902, c. 139. ACCIDENT INSURANCE FOR WORKWOMEN 63 for the same, engaged in constructing sewers or in any other work of excavation or construction. Liability Relieved by Insurance. The act then pro- vided that employers in these occupations might be re- lieved from such liability if they paid in monthly install- ments to the Insurance Commissioner the following annual sums for each workman employed: 1. In mining or quarrying - $1.80 2. In operating a steam railroad - 3.00 3. In operating a street or trolley road . 60 4. Every town, city or county (or the contractor there- for) engaged in constructing a sewer, or any other excavation or physical structure, such annual sum as the insurance commissioner should deem neces- sary to insure such employees for $1000 each in event of death, considering the occupation or trade risk involved. Employers were permitted to deduct one-half of the amounts paid from the wages of the workmen after having notified them in advance that this would be done. They were not, however, entitled to the benefits of tbe law un- less they made a certified report on the first Monday of each month to the Insurance Commissioner stating the number of persons employed in the respective occupations during the preceding month, including those employed for only a part of the month, and the estimated number of those to be employed during the month of the report, and paid in advance the proper monthly installment for each person employed. Powers of JTiwimiuoe Commissioner, The insurance commissioner was authorized to receive and administer all the money or insurance premiums so received and to keep 64 ACCIDENT INSURANCE FOR WORKWOMEN a separate account of them which was to be known as the Employers' and Employees' Co-operative Insurance Fund. The monthly balances were to be invested according to law in certain safe and convertible securities and full sta- tistics of the operation of this function of the department were to be kept. A benefit of $1,000 was to be paid in the event of death of an employee as soon as the insurance commissioner was "satisfied by adequate evidence ef such death" that it came within the provisions of the law. In addition to the powers mentioned above the insurance commissioner was vested with plenary power to determine all disputed cases which might arise in the administration of the law and to regulate from year to year the rates of premiums payable in order to preserve such fund and pay the death indemnifications provided for. Provision was also made whereby he might on application and hearing exonerate an employer from all liability imposed by the act if the employer showed satisfactorily that his em- ployees were entitled to equal benefits in some other insur- ance scheme to which he contributed his share. The Act Unconstitutional. This act was declared uncon- stitutional in 1904 after it had been in operation but twen- ty-two months because it vested the insurance commissioner with judicial authority and deprived the people of a right of trial by jury in certain cases which they had previously enjoyed. The decision was rendered in the Common Pleas Court of Baltimore but was never appealed to the district or supreme courts. The insurance commissioner immediately distributed the funds collected and discon- tinued this function of his department. The opinion of the Baltimore Common Pleas Court is here printed in full as it was copied from the records. ACCIDENT INSURANCE FOR WORKWOMEN 65 Andrew J. Franklin vs. The United Railway & Electric Com- pany of Baltimore in the Court of Common Pleas. The demurrer to the plea in this case depends for its deter- mination upon the constitutionality, vel non, of Chapter 139 of the Acts of Assembly of 1902. This act had for its purpose the creation and maintenance of a co-operative insurance fund in the hands and under the supervision of the State Insurance Com- missioner for the benefit of employees in certain enumerated lines of employment. It required the employers in these occu- pations to pay into the hands of the Insurance Commissioner a certain sum for each employee in service, and in the event of death from, or as the result of accident, made the sum of $1,000 payable to the widow or children of the deceased, as the Insur- ance Commissioner should think fit. The act provided for the payment of the death benefit, in two classes of cases in which there was previously no right of action, viz: where the death re- sulted from negligence of a fellow servant, and where the de- ceased had by his own negligence directly contributed to his death. But for the handling and disbursement of this entire fund "plenary power" was lodged in the hands of the Insurance Com- missioner, thus investing him with judicial or quasi judicial powers, and that without any provision for a trial by a jury, or any right of appeal from his conclusions. Had the act stopped here it might well have been argued that inasmuch as it provided for a fund for the benefit of certain widows and orphans who would otherwise be remediless, it was within the power of the legislature to place the administration of that fund in the hands of such officials as it might see fit. But the act did not stop with the provisions already referred to, but also embraced cases where the death had been caused by the negligence of the employer, cases where there would bo a clear right of action in the courts under existing law. It also enacted that the employers who made the payments provided in the act should, by such payments, be exempted from further liability. The effect of the act was, therefore, not only to vest in the Insurance Commissioner powers and functions essentially judicial in their character, but to take away from citizens a legal right which they theretofore enjoyed, and which could be enforced by 5 66 ACCIDENT INSURANCE FOR WORKWOMEN them in the courts, and also to deny to them the right to have their cases heard before a jury. It is only necessary to clearly understand the provisions of this act to see that they are indirect conflict with several of the provisions of the constitution of the state. Thus art. 5 of the declaration of rights, assures to the people the right of a trial by jury, Knee vs. City Pass. Ry., 87 Md. 624. Art. 19 gives to everyone for injury done to him in his person or property, a remedy by the course of the law of the land. Yet both of these guarantees are completely ignored by the act in question. Without prolonging the matter, therefore, it is so clearly evident that the act in question is framed in total disre- gard of the provisions of the constitution that the act must be declared void, and the demurrer sustained. Signed HENRY STOCKBRIDGE, J udge. Accident Insurance in New Zealand /State Insurance. The accident insurance law of New Zealand is of interest in an analysis of this kind because it illustrates a method by which state insurance is con- ducted. In New Zealand the political organization of the state conducts an insurance office and state officials admin- ister the funds of the office. The insurance is conducted according to actuarial principles in competition with pri- vate corporations. Insurance in the state fund is purely voluntary on the part of all policy holders. The point of particular interest in connection with the New Zealand in- surance department is the fact that the original capital for the department is raised on the credit of the government, that a sinking fund is created out of the proceeds of the accident branch for the redemption of the government securities when they mature, and that a deficiency in the cash funds of the insurance department shall be made up out of the public treasury. Any money advanced to the insurance department in this way is considered as a loan ACCIDENT INSURANCE FOR WORKINQMEN 67 which is to be returned to the public treasury as soon as practicable out of tha proceeds of the insurance office. A brief abstract of the accident insurance law of 1899 is given in the following- paragraphs: 1 Accident Brandt. The Commissioner of Insurance is authorized to establish an accident branch of the govern- ment insurance department for the purpose of transacting a personal accident and employers' liability business. He is authorized to enter into such contracts for or relating to insurance against accident as are usually undertaken by insurers against accident, including reinsurance, in New Zealand or elsewhere of the risks taken. Capital. The governor in council is authorized to raise capital not exceeding 25,000 pounds for an accident branch of the government insurance department by issuing debentures or scrip, according to the stock law of 1877, and to prescribe the mode and conditions of repayment and the rates of interest thereon. The board is author- ized to make temporary advances out of the government insurance account in lieu of such capital. /Sinking Fund. A sinking fund is provided for in order to create a fund for the redemption at maturity of all securities issued in respect of capital raised under the Act. Reserve Funds. Such reserve funds for the purpose of the Accident Insurance branch shall be set aside out of surplus profits as the governor by order in council, may determine. Provision for Deficits, (l) If, after recourse has been had to the available funds and securities, the balance in 1 Accident Insurance Law of New Zealand, 1399, (53 Viet. No. 20. 68 ACCIDENT INSURANCE FOR WORKINGMfW the government accident insurance account is at any time insufficient to meet the charges thereon, it shall be the duty of the Controller and Auditor-General, under the warrant of the Governor and on the requisition of the Colonial Treasurer, countersigned by the Commissioner, to issue the amount of such deficiency out of the Consolidated Fund to the Colonial Treasurer to be transferred by him to the credit of the Government Accident Insurance Ac- count. (2) It shall be the duty of the Colonial Treasurer to cer- titiy every such deficiency to both Houses of the General Assembly within fourteen days after the issue of such moneys from the Consolidated Fund, if Parliament is sit- ting, or, if not, then within fourteen days after the com- mencement of the next ensuing session thereof. (3) All moneys so issued and transferred shall be deemed to be advances by way of loan, and, with interest thereon, or on so much thereof as for the time being remains un- paid, computed at the rate of five per centum per annum, shall, without further appropriation than this Act, be re- paid into the Consolidated Fund by the Commissioner out of the Government Accident Insurance Account as soon as practicable, having regard to the balance in that account. Taxation. The Commissioner of Insurance is liable to assessment and vaxation in the same manner and to the same extent as in the case of an accident insurance com- pany. ACCIDENT INSURANCE FOR WORKINOMEN 69 CONCLUSION A study of the foregoing pages, and more particularly the statutes cited thei'e, reveals the fact that in many re- spects the requirements of various American states for the insurance companies under their jurisdictions are quite uniform in regard to the amount of capital required, the reserves to be maintained and the method of determining them and the manner in which impairments of capital and deficiencies in assets are to be made good. As a rule very little has been done in this country toward permitting the organization of stock or mutual companies for the purpose of transacting employers' liability or workmen's collective insurance, or encouraging the formation of any kind of company specially adapted to the handling of this kind of business. A comparison of the laws of American states with those of European countries, especially Austria and Germany, shows that a great deal more has been done there than here toward working out a minute classification of occupations and industries according to the hazard in- volved and toward encouraging the prevention of accidents through the activity of the insurance corporations where- by the cost of insurance is greatly reduced and the burden of industrial accidents more equitably distributed. It is evident that these countries arc attempting to do a great deal in the way of modifying their law relating to the legal 70 ACCIDENT INSURANCE FOR WORKWOMEN liability of employers for accidents to their workmen by encouraging the organization of insurance corporations along trade lines in which workmen will be collectively in- sured against accidents in the course of their employ- ment and still all the essential requirements of a solvent institution be carefully observed. WISCONSIN LIBRARY COMMISSION COMPARATIVE LEGISLATION BULLETINS No. 1. Railway Coemployment. No. 2. Lobbying. No. 3. Corrupt Practices at Elections: Contributions and Expenditures. (Out of print) Exemption of Wages. Municipal Electric Lighting. (Out of print) Trust Company Reserves. (Out of print) Taxation of Trust Companies. (Out of print) Municipal Gas Lighting. (Out of print) Boycotting. (Out of print) Blacklisting. (Out of print) The Initiative and Referendum: State Legislation. (Out of print) No. 12. The Recall. No. 13. Primary Elections. The Test of Party Affiliation. No. 14. Proportional Representation. No. 15. Juvenile Courts. No. 16. Telephones. Interchange of Service. No. 17. Mortgage Taxation . No. 18. Municipal -Home Rule Charters. No. 19. Tenement House Legislation. State and Local . No. .20. Accident Insurance for Workiugincn. A 000 891 901 1