1.

RECOMMENDATIONS.

Section 9.-That the State, County and Municipal Corporations be considered employers within the meaning of the Act, and that provision be made for the payment of premiums and other expenses in connection with such elections.

That compensation be payable only to employees injured within this state, except as set out in said Section.

That the principal contractor be considered the employer of any employees of a sub-contractor.

I am of the opinion that this Act should be broad enough to cover State, County and Municipal employees, elective officers, however, excluded.

Compensation should be restricted to employees injured within this State, for the reason that the industries of this State should not be compelled to pay the liability of industries in other states, and further it is impracticable to obtain proper evidence of injuries outside the state, thereby causing a possible hardship upon the injured employee, or upon the compensation fund.

The principal contractor should be considered the employer of employees of his sub-contractors, for the reason that in a majority of cases such sub-contractors refuse or neglect to make election to cover their employees, and as a rule such subcontractors are irresponsible; one of their injured employees is without redress.

2. Section 18. That this section be amended so as to provide more definitely and in a more detailed manner the method of assessing premium rates, both "flat" and "merit" rates, and the manner of liquidating any deficit in a schedule, and for creating a proper surplus in each schedule and providing that the receipts and disbursements for each schedule shall be kept separate and apart on the books of the Commissioner and that each schedule shall carry its own risk.

The "merit" system of rating as put in effect in the coal schedule July 1st, 1916, having met with the approval of a majority of the subscribers forming this schedule, the same method has been applied to a number of other schedules having a considerable difference in the degree of hazard of the subscribers forming the same. The present Act, however, is not specific enough in its provisions, and should be made more definite and explicit as per my recommendations.

3. Section 19.-The changes recommenden in this Section are simply to make same conform to the p;ovision in Section 24 with

reference to the employer paying the total premium, and the employees no part of same.

4. Section 20.-That changes be made in the method of handling money received to the credit of the fund.

The present Act provides that all moneys to be credited to the Fund shall be paid into the state treasury and that the Treasurer shall issue his receipt in duplicate, the original to be delivered to the person paying same and the duplicate to the Commissioner. However, as it is necessary for all moneys to pass through the hands of the Auditor, to enable him to keep proper and accurate accounts of same, and as a matter of fact most checks for premium and deposits are mailed direct to the Commissioner, the Commissioner has found it necessary to make blank certificates of deposit, the reverse side of which shows the name and address of the subscriber whose money is included in said certificate and the amount paid by each, which together with the checks he transmits to the Treasurer, who endorses the checks and sends them, together with the blank certificate, to the Auditor. The Auditor deposits the checks in a state depository, receives back the properly executed certificate, which he endorses, enters on his books and transmits to the Treasurer, who then issues his receipts in triplicate, the original going to the person making payment, the duplicate to the Auditor and the triplicate to the Commissioner. All of the above is necessary for the proper accounting of the money, but which takes a great deal of time and delays the receipting of same to the subscriber and the proper credits being given on the books of the Commissioner.

The Act should be amended so as to require payment direct to the Commissioner, who shall transmit to the Auditor certificates of deposit covering same, the Auditor to properly enter same on his books and deliver to the Treasurer, who should immediately issue his receipts as above explained.

Provision should also be made for detailing a special person or persons in the Auditor and Treasurer's offices, or to work together, in handling the receipts and disbursements, necessary accounting and mailing of receipts used in handling the compensation fund.

5. Section 22. That this Section be amended to conform to the provisions of Section 24.

6. Section 24.-That the employers should pay all premiums. and the employees no part of same.

I believe that the cost of the workmen's compensation should be considered as a part of the cost of production, and charged to the cost of production, with the result that the consumer ultimately pays this charge, therefore I see no good reason for charging any part of same to the employee. From actual

experience in the administration of the Fund, I find that the charging a percentage of the premium to the employee has not had the effect contemplated when the original Act of 1913 was passed, and I am of the opinion it would be more satisfactory to all concerned if the employers paid the full amount of the prescribed premium.

7. Section 24.-That the minimum premium to be paid by any employer for any month be changed to fifty cents, instead of one dollar, as it is at present.

8. Section 24.-That the employer's election to pay premiums into the Fund should automatically terminate upon his failure to pay premiums, or make payroll reports or keep up deposit, when requested, within the time specified.

Under the present Act the employer's election terminates if he fails to pay premiums for two successive months, but when this occurs there may be nearly three months accrued premiums due, with only two month's deposit to pay same, which leaves such employer's employees not entitled to benefits for a period of at least twenty-five days, with their rights to sue questionable during said period. Some trouble has also been caused the Department by failure of employers to make payroll reports, although they make payments to cover premiums. The payroll reports are just as essential as the premiums for it is impossible to keep proper accounts or know the standing of a subscriber unless his payroll reports are received promptly. The Department has also had some trouble in getting subscribers to keep up their two months deposit and there appears to be no penalty for their failure in this respect.

9. Section 25.-That this Section be amended so as to cover "personal injury by accident" instead of "injuries," as provided in the present Act. The word "injury" being too broad in its scope, and may be interpreted to cover many injuries not contemplated in the framing of a workmen's compensation law.

10. Section 26.-That this Section be amended to conform to the provisions of Section 24.

11.

Section 27.-That the provisions of this Section be amended so as to take care of certain conditions found necessary from experience in administering the fund.

The present Act provides for a maximum of $150.00 to be expended for medical, surgical and hospital treatment in any one case, but to relieve what would otherwise be permanent disabilities, the Commissioner may spend for secondary treatment a sum in excess of $150.00, but not to exceed $300.00. I find that the limit of $150.00 is sufficient in the great majority

of cases and that the additional $150.00 has enabled us to relieve and make useful citizens of employees who would otherwise be possible cripples for life and placed upon the pension rolls of the Department. However, some employees are so severely injured, burned, multiple fractures, etc., that the maximum of $150.00 is insufficient and the cases cannot be considered as covered by the $300.00 maximum. I am, therefore, of the opinion that provision should be made for the payment of an additional $150.00, making the total payment for medical, surgical, hospital and artificial appliances. not to exceed $450.00.

12. Section 27.-That in addition to the payment for medical, surgical and hospital treatment, provision be made for the payment of artificial appliances as in the opinion of the Commissioner may reasonably be required.

13. Section 28.-That the Commissioner be empowered to require employers to install, use or adopt such protective or safety appliances as in his opinion are necessary for the protection of employees.

14. Section 31.-That the weekly maximum and minimum, in permanently injured cases, be made the same as in temporary disability, i. e. $10.00 and $5.00 respectively, instead of $8.00 and $4.00 as it is in the present act.

I am of the opinion that a permanently injured person should receive at least as much, if not more than a person temporarily disabled.

That this Section be amended permitting the Commissioner to pay to the dependents of an employee any compensation that may have accrued from the date of injury to the date of death.

That percentage awards in permanent disability cases be computed on a scale from five per centum to one hundred per centum. 15. Section 33. That compensation be payable under this section in case the accidental personal injury causes death within the period of one year from date of injury, instead of twenty-six weeks, as provided in the present law.

In a number of instances, especially in cases of injury to the spine, the injured employee has lived more than twenty-six weeks after the date of injury and died within a short time thereafter, leaving his dependents in worse shape financially by reason of his prolonged illness than if he had died within the said twenty-six weeks.

That paragraph (b) of this Section be amended to provide payment to a wholly dependent father or mother of fifty per centum. of the average monthly support actually received from the employee during the twelve months preceding his death, to continue for the remainder of the period between the date of death and six years after the date of injury, or until the death of such dependent, if such occurs prior to the end of said six year period. Payments to be limited to a maximum of $20.00 per month.

That provision be made for the partially dependent father or mother of an unmarried employee under the age of twenty-one, on a basis of fifty per cent of the average weekly wage of the employee, not to exceed a maximum of six dollars per week, to continue until the employee would have been twenty-one years of age.

That compensation be awarded to all children under the age of fifteen years until they reach said age.

That in defining "dependents" there be included "an invalid brother or sister wholly dependent for his or her support upon the earnings of the employee at the time of the injury causing death."

16 Section 37-That the last clause of this Section as it is at present be eliminated, for the reason that awards should in my opinion be made on the average weekly earnings of the employee in the industry or business in which he is engaged at the time of injury

17 Section 39. That provision be made in this Section whereby the Commissioner may in his discretion accept an application filed by an injured employee after six months from the date of his injury, where it is shown that such failure is due to the employer's failure to report such injury; also that Consular Officers be permitted to represent non-resident aliens, but not permitted to make application for compensation in behalf of non-resident aliens.

In a number of instances, injured employees have been denied compensation on application filed after six months from the date of their injury, due to the fact that the employer refused or neglected to make report of such injury; which is an injustice to the employee, and provision should be made to remedy this defect.

The recommendation with reference to Consular Officers not being permitted to make application in behalf of nonresident aliens is made on account of such officers having in the past, and do at the present time, file an application in behalf of a non-resident alien, without being so requested by such alien and without knowing such dependent actually exists. I am of the opinion that all applications should be