On page 810, in the first column, it is argued that no doubt big business and the insurance companies would be glad to see the pending constitutional amendment defeated. That is a pure assumption. Inasmuch as said amendment goes infinitely farther than authorizing a compensation law, and generally repeals the Bill of Rights in application to the relation of employer and employe, there may be many conservative opinions opposed to its enactment. But big business, the casualty insurance companies and a host of conservative people have been most active in the movement for an amendment permitting the enactment of a compensation law in this state in such form as the judgment of the legislature might decide, without any restrictions in the interests of any party.
On the same page, near the top of the second column, it is objected to the insurance committee’s compensation bill now pending in the Legislature that it leaves the function of fixing rates in the State Insurance Department. Why not! Is the objection to that provision that the Insurance Department, being already constituted and being composed of officials expert in the subject of insurance, will fix rates properly and not use state-administered insurance as a political weapon? Why create a new body to deal with the technical subjects with which the Insurance Department is qualified to deal?
Further down it is stated, sneeringly, that “three constitutional objections to one bill is good measure.” The objections are then stated. Now as a matter of fact three constitutional objections to one bill don’t amount to much unless these objections are valid. All the objections recited in this paragraph have been carefully considered and the overwhelming weight of opinion is that they are not valid.
It is then stated that a certain change in this bill from its earlier form has “in effect, turned the whole rich New York field over to the casualty companies.” And the reason for that conclusion is stated to be that the employers will do nothing until the casualty companies’ agents come to them, and will then do what the casualty insurance agents advise. That is nonsense. When the casualty insurance agents go to the employers under a law such as is proposed in this bill, they will go with a proposition involving an extremely large increase in rates. Employers throughout this state have been aroused over the subject of compensation and have studied the question of insurance sufficiently to turn out en masse against a proposition to give a state office the monopoly of insurance. Does it seem probable that when they are approached by the casualty insurance companies’ agents they will suddenly turn into fools and in effect submit to a monopoly by those companies? On the contrary, they will study the problem of mutual insurance very hard, and there will undoubtedly result many experiments in that line. Large establishments also will study out the problem of carrying their own insurance. It is also probable that a few employers may venture to experiment with state insurance. But the fact is, as the writer of this article knows, that no well informed and substantial employer will have anything to do with state insurance except as a last resource, or unless he is compelled.
Finally it is stated that no spokesman for the casualty insurance companies appears upon the field in New York. That is rather ridiculous. Officially, the two best informed persons upon casualty insurance in this state should be Mr. Hotchkiss, the former, and Mr. Emmet, the present, state insurance commissioner; and they both have spoken for, although not as the representatives of, the casualty companies of New York. At the same time, Frank E. Law, of the Fidelity and Casualty Company, and Edson S. Lott, of the United States Casualty Company, have made many addresses and published a considerable amount of literature on this subject. Naturally, the insurance companies have sought to avoid anything that would cause the false impression that any bill was in their particular interest. They have therefore rather confined themselves to opposing thoroughly bad measures than to advocating anything that they particularly desire or recommend.
The whole animus of this article is clearly betrayed in the opening words of the last paragraph, where the writer says, “while men are deliberately and openly planning the utter rout of the casualty companies....” Who are these men that are deliberately and openly planning the utter rout of the casualty companies? The writer is among them. They are those who seek to destroy private business in all its forms and to substitute state management and control in its place. Their activities in the present campaign have nothing to do with the particular merits or demerits of the compensation measures in question. Their whole attitude is false, in that they do not admit their motives, and besides wantonly misstate facts as to their adversaries.
F. Robertson Jones.
[Secretary-Treasurer Workmen’s Compensation Publicity Bureau.]
New York.