Cornell University Library 
 HD7816.U7I\/I86 1914 
 
 Report of the Workmen's Connpensation Com 
 
 ■■3 1924 002 266 850 
 
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THE LIBRARY 
 
 OF THE 
 
 NEW YORK STATE SCHOOL 
 
 OF 
 
 INDUSTRIAL AND LABOR 
 
 RELATIONS 
 
 AT 
 
 CORNELL UNIVERSITY 
 
REPORT 
 
 OF THE 
 
 WORKMEN'S Compensation 
 Commission 
 
 TO THE 
 
 Forty-Eighth General Assembly 
 
 OF THE 
 
 STATE OF MISSOURI 
 
 THE HUGH STEPHENS PRINTING COMPANY, 
 
 , JEPFBKSON CITY, MO. 
 
E ^ Cornell University 
 wM Library 
 
 The original of tiiis book is in 
 tine Cornell University Library. 
 
 There are no known copyright restrictions in 
 the United States on the use of the text. 
 
 http://www.archive.org/details/cu31924002266850 
 
REPORT 
 
 To the Senate and House of Representatives of the Forty-eighth 
 General Assembly of Missouri: 
 
 The Workmen's Compensation Commission appointed by 
 the Senate of the Forty-seventh General Assembly of Missouri, 
 consisting of Senators Ben L. White, chairman, Walter C. 
 Goodson, secretary, William G. Busby, Robert S. McClintic and 
 Alroy S. Phillips, reports as follows: i 
 
 The Commission has made a careful study of the conditions 
 and laws of this and other states and in person has visited 
 California, Oregon, Washington, Colorado, Ohio, Washington, 
 D. C, Pennsylvania, New Jersey, New York, Massachusetts, 
 Michigan and Illinois, where every facility for investigation and 
 information was placed at our disposal. Public hearings were 
 held in St. Louis, Kansas City, San Francisco, Portland, Olympia, 
 Seattle and Cincinnati, and informal conferences were held in 
 Los Angeles, Tacoma, Denver, Columbus, Washington, D. C, 
 Philadelphia, Trenton, New York, Boston, Lansing, Chicago 
 and various other places, at which the officers administering 
 the laws, the representatives of labor, employers, insurance 
 companies and various other persons were consulted or appeared 
 and gave the commission the full benefit of their views and 
 experience. The testimony taken in San Francisco and Olympia 
 will be filed with the Secretary of the Senate but owing to the 
 expense the Commission abandoned the plan of preserving the 
 other testimony. 
 
 Almost every civilized country in the world, and twenty- 
 four States of the United States, have some kind, of a Workmen's 
 Compensation Act, and in most of the other States commissions 
 are now at work preparing laws to be acted upon at the next 
 sessions of their law-making bodies. In every State which our 
 Commission visited, we found the sentiment in favor of Work- 
 men's Compensation as opposed to the old liability system, and 
 no matter how defecrtive.ihe^liaw ait persWA (^^^cted by it were of 
 the opinion that it w)|(|(^a^|^s2;i][^|io5j1|^^e old system. 
 
 liliDilSTRIAI ANFUflnfi BE|,;ij|ONC 
 
4 [43 
 
 For the reasons hereinafter stated the Commission recom- 
 mends the passage of the following four bills which will be found 
 in the appendix. 
 
 1. An Elective Workmen's Compensation Act. 
 
 2. An Act Creating the Missouri Industrial Commission, 
 
 3. An Act Providing for the Organization of Corporations 
 on the Mutual Plan to Insure Against Employers' Liability. 
 
 4. An Act Levying a Tax of Five Per Cent on all Pre- 
 miums for Employers' Liability Insurance for the Support of 
 the Industrial Commission. 
 
 CONDITIONS CAUSING DEMAND FOR WORKMEN'S 
 COMPENSATION LAW. 
 
 Of the bills recommended by the Commission the Workmen's 
 Compensation Act involves changes in the fundamental law of 
 this State which are far reaching and important, and which should 
 only be made with a thorough understanding and for reasons 
 which are sound and practical. The chief cause of the indus- 
 trial unrest and bitter feeling due to industrial accidents and of 
 the evils of our present system of compensating for them, is best 
 expressed by Sir Henry Maine, who at page 23 of his Ancient 
 Law, says: 
 
 "I confine myself in what follows to the progressive 
 societies. With respect to them it may be laid down that 
 social necessities and social opinion are always more or less 
 in advance of the Law. We may come indefinitely near 
 to the closing of the gap between them, but it has a per- 
 petual tendency to reopen. Law is stable; the societies we 
 are speaking of are progressive. The greater or less happi- 
 ness of the people depends on the degree of promptitude 
 with which the gulf is narrowed." 
 
 Changes In Industrial Conditions and Changes In The Law. 
 
 With respect to personal injuries to employees we are still 
 attempting to apply the law as it had been developed at the time 
 of the adoption of the federal constitution. At that time Watts 
 was just beginning to manufacture his steam engines and sell 
 his pumps to the miners of Cornwall, the industrial system was 
 simple and personal injuries to employees were few. Since then 
 have come the factory system, the substitution of machinery for 
 hand power, the division of labor, the new conditions of compe- 
 
43] 5 
 
 tition, the better organization, electricity, the intensity, the 
 complexity and all of the other features of modern industrial life, 
 which have brought with them such changed conditions and such 
 a toll of industrial accidents, with their attendant misery and 
 suffering, that it is now a social injustice to continue the attempt 
 to apply the old law to the new conditions. Yet with all these 
 changes in conditions, the law has not changed, and if anything, 
 has gone backward iiistead of forward. The following are 
 some of the results of this failure of the law to keep pace with 
 our development. 
 
 Number of Industrial Accidents and Their Cost to Employees. 
 
 Unfortunately there are no accurate statistics showing the 
 number of industrial accidents in the United States or in this 
 State. The most accurate statistics are those of the Massachu- 
 setts Industrial Accident Board, the first annual report of which 
 shows' 474 fatal and 89,694 non-fatal accidents reported in one 
 year. For twenty-five selected industries the rate was 91 
 accidents per 1000 employes. Using the Massachusetts figures 
 as a basis, Hon. Lindley D. Clark of the United States Bureau 
 of Labor Statistics computed that there were approximately 
 600,000 industrial accidents to the 6,615,000 wage earners in the 
 manufacturing industries of the United States in 1909, but 
 slates that in his opinion this estimate is entirely too high. 
 Probably the most conservative estimate is that of Mr. Frederick 
 L. Hoffman who estimated that in the manufacturing industries 
 of the United States in 1908 there were 5000 fatal and 203,300 
 non-fatal industrial accidents. 
 
 Inquiries sent by the Missouri Bureau of Labor Statistics 
 to 4210 factories and establishments in St. Louis, Kansas City 
 and St. Joseph, not including railroads, mines or the building 
 industry, brought forth 2060 replies showing 23 fatal and 9419 
 non-fatal accidents in 1911. As this probably represents less 
 than one^fourth of the total, there were about 50,000 industrial 
 accidents in Missouri in 1911. 
 
 The small proportion of the costs of these accidents to the 
 employer is considered in another place. What they cost the 
 State and society at large is impossible to compute. Nor can 
 the pain, deprivation and misery of the injured employee and 
 his dependents be told in dollars and cents. According to the 
 report of the Massachusetts Board the actual wage loss of the 
 89,694 non-fatal accidents was 12,965,225.00, and on 72,862 of 
 
6 [43 
 
 these accidents which were insured the cost of the medical aid 
 was $414,195.42. On the same basis 50,000 accidents per 
 year in Missouri would mean an actual money loss to the em- 
 ployees of this State of approximately $1,653,000.00 in wages 
 and of approximately $258,500.00 for medical aid, or in round 
 numbers an approximate total of almost $2,000,000.00 and this 
 is only an average of $40 per accident with nothing included for 
 death claims. Assuming that of the 50,000 accidents there were 
 200 deaths at $4000 each, the total loss to workmen and their 
 dependents is approximately $2,800,000 per year. 
 
 Compensation Paid For Industrial Accidents. 
 
 As to the proportion of this terrific loss which is paid by the 
 employer there is a still greater lack of statistics, but the con- 
 sensus of opinion is that by far the greater burden is borne by 
 the injured employees and their dependents and by the State 
 and society at large. Ufider our present system the injured 
 workman's remedy is an action at law in which he must show 
 that the injury was caused by the negligence of the employer. 
 To such an action the employer has the following four chief de- 
 fenses, proof of any of which will defeat the action: 
 
 1. That the accident was not caused by the negligence of 
 the employer, or 
 
 2. That the injury was caused by the negligence of em- 
 ployee contributing thereto, or 
 
 3. That the injury was caused by a hazard that was nec- 
 essarily incidental to the employment, the risk of which was 
 assumed by the employee, or 
 
 4. That the injury was caused by the negligence of a 
 fellow employee, which is one of the assumed risks. 
 
 Several statistical attempts have been made at the classifi- 
 cation of accidents with respect to negligence, or fault, but the 
 systems of classification are so varied that it is very difficult 
 to draw any deductions as to the proportion of cases in which 
 the employee could ultimately recover in an action at law. 
 
 On page 6 of the pamphlet, entitled "Industrial Accidents 
 in Missouri" it is stated that of 100 accidents reported to the 
 Board of Public Welfare in Kansas City in 1912, 54 per cent were 
 preventable, 24 per cent were due to negligence on the part of 
 the injured employee or his fellow employees, and 30 per cent 
 were due to the negligence of the employer in providing improper 
 safe-guards or defective equipment. On page 42 of the same 
 
43] 
 
 pamphlet it is stated that of 189 accidents in St. Louis in 1910-12, 
 24 per cent were pure accidents, 52 per cent were due to the' 
 negligence of the employer and fellow workmen and 22.7 per 
 cent were due to the negligence of the workmen alone. 
 
 On page 269 of the First Annual Report of the Industrial 
 Insurance Department of the State of Washington, it is stated 
 that of 377 fatal accidents in the district of Pittsburg, Pennsyl- 
 vania, 29.97 per cent were due to the negligence of the employer 
 alone, 27.85 per cent were due to the negligence of the injured em- 
 ployee or his fellow employees, 16.91 per cent were due to both of 
 the above classes, and 26.27 per cent were due to neither of the 
 above classes. On page 173 of the same report and page 97 
 of their Second Annual Report are tables showing the distribu- 
 tion of fault in 6356 and 12,380 accidents respectively, as follows: 
 
 2nd Report 
 
 Trade risk 
 
 Workmen's fault 
 
 Fellow workman's fault 
 
 Employers' fault 
 
 Foreman's fault 
 
 Third person's fault. . . 
 Facts not ascertainable . 
 
 69.0% 
 
 7.8% 
 
 2.4% 
 
 , .7% 
 
 .1% 
 
 .2% 
 
 19.8% 
 
 Perhaps the most reliable statistics are those in the follow- 
 ing table taken from page 269 of the First Annual Report of the 
 Industrial Insurance Department of the State of Washington, 
 page 25 of the pamphlet on Workmen's Accident Insurance in 
 Germany by Harold G. Villard, and pages 60-65 of Bulletin No. 
 92 of the U. S. Bureau of Labor Statistics, showing the German 
 official estimates of the classification of causes, the figures for 
 1907 being based on 81,248 accidents. 
 
 1887. 
 
 1897. 
 
 1907. 
 
 Average. 
 
 Fault of employer 
 
 Fault of workman 
 
 Fault of both employer and workman . . . 
 Fault of fellow-servants and third persons 
 
 General hazard of industry 
 
 All other causes 
 
 20.47% 
 
 26.56% 
 
 4.61% 
 
 3.40% 
 
 44.96% 
 
 16.81% 
 
 29.89% 
 
 4.66% 
 
 5.28% 
 
 42.05% 
 
 1.31% 
 
 12.06% 
 
 41.26% 
 
 0.90% 
 
 5.94% 
 
 37.65% 
 
 2.18% 
 
 16.45% 
 
 32.57% 
 
 3.39% 
 
 4.87% 
 
 41 . 55 % 
 
 1.75% 
 
 Taking the averages of these figures the deduction is that 
 under our law recovery could be had theoretically in but 16.45 
 per cent of all industrial accidents and that in all other cases 
 
8 [43 
 
 the employer could defeat recovery under one or the other of 
 his defenses. Applying this percentage to the estimate of 
 50,000 accidents a year in Missouri would give but 8225 cases 
 in which there could be a theoretical recovery. 
 
 But that is not all. These figures do not include the large 
 percentage of cases where the injury is so slight that it does not 
 pay to sue, say a disability lasting for one day only, which dis- 
 abilities according to the Massachusetts report comprised 41 
 per cent of the cases. Nor do they include the vast number of 
 persons who, in ignorance of their rights or through fear of loss 
 of their positions, never make any claim at all, which in the 
 opinion of the Secretary of the New Jersey Commission com- 
 prise about 50 per cent of all cases. 
 
 Omitting this last item altogether gives 9.71 per cent or 
 4855 out of 50,000 cases a year in Missouri in which a claim 
 would probably be made and a recovery had. In 1911 the lia- 
 bility companies paid to injured workmen in Missouri in round 
 numbers about $330,000.00 (which is 42 per cent of the losses 
 shown on page 125 of the 43rd Missouri Insurance Report), 
 and. assuming that 4000 of the 4855 cases were of employees 
 covered by liability insurance, there was paid an average of 
 $82.50 per injury. Assuming that employers not covered paid 
 at the same rate we have 50,000 industrial accidents a year en- 
 tailing an actual loss on the injured workmen and their de- 
 pendents of $2,800,000, for which compensation amounting to 
 but $412,500 was paid to only 4855. This of itself is a sufficient 
 arraignment of our present system, but it is not all. 
 
 Evils of Our Present System For the Recovery of Compensation. 
 
 To get this compensation these 4855 had either to compro- 
 mise with their employer or his insurer, or go into the Courts. 
 
 .A large number of the Circuit Courts are almost a year 
 behind in their dockets, and with the various motions, tech- 
 nicalities and other delays which may be interposed under our 
 deplorable legal system, it is usually between one and two years 
 from the time the suit is filed before the case is tried, the motion 
 for new trial ruled upon, and the case is so that an appeal may 
 be taken. 
 
 The Supreme Court is now over two and one-half years 
 behind in its docket, and the St. Louis Court of Appeals is about 
 two years behind, so that an appeal to these Courts could not 
 be heard for two and one-half or two years. 
 
43] 9 
 
 And after all this delay the case may be remanded for an- 
 other trial and perhaps another appeal, as a large precentage 
 of such cases usually are. The possibilities of a reversal, and 
 of wearing out the employee and forcing him to compromise, 
 and the facts that no interest is allowed on the damages and 
 that the appellate courts S^eldom inflict the 10 per cent penalty, 
 all tend to tempt the employer to appeal. In the meantime the 
 injured employee and his dependents are usually in actual need. 
 In addition to this the prices charged the employee for legal 
 services, medical aid, hospital service, the money he borrows, 
 the credit he gets for necessaries and other things, being nec- 
 essarily contingent upon the delays and uncertainties of litiga- 
 tion, are necessarily and sometimes outrageously higher. Such a 
 situation inevitably leads to evils, and charges of collusion and 
 perjury, are not uncommon on both sides. 
 
 Such conditions make a powerful inducement for the in- 
 jured employee to compromise his case for much less than he is 
 entitled to. If he attempts to settle without the aid of a lawyer 
 the settlement is usually for a very small sum. If he employs a 
 lawyer he must make a contract to pay him a contingent fee. 
 Such contracts usually vary from 20 per cent to 60 per cent of 
 the amount recovered with or without suit. Taking the average 
 of such contracts at 40 per cent and the proportion of other items 
 and the excess cost of medical aid, etc., at 10 per cent, makes 50 
 per cent which is lost to the workman., Or in other words, of an 
 actual money loss of $2,800,000.00 for 50,000 industrial accidents 
 a year in Missouri, compensation of only $412,500.00 is paid in 
 but 4855 cashes, of which only $206,250.00 reaches the injured 
 workmen to compensate them for their actual money- loss, 
 figured on the basis of the value of their lost time and the rea- 
 sonable value of the medical aid and other services in connection 
 with the injury. Such a situation alone would be a sufficient 
 cause for the ill feeling existing between employer and employee. 
 
 Waste of the Present System. 
 
 It is a very conservative estimate that the attorneys' fees, 
 and the excess over, that is reasonable in the other charges, 
 amount to fully 50 per cent of what is collected from the em- 
 ployer. Under a compensation law all of these charges are 
 eliminated. It also costs the employer, or his insurer, a great 
 deal of money to defend the suits and for court costs. Work- 
 men's Compensation laws, by eliminating these and other ex- 
 
10 [43 
 
 penses of the employer have reduced the so-called "costs of ad- 
 ministration" of insurance companies fully 15 per cent. These 
 two items alone make a waste of 65 per cent of the amount 
 paid by employers, which will be saved under the new system. 
 
 In the opinion of the Commission this state of facts was 
 sufficient to justify a change in our laws, and from its investi- 
 gations the Commission has found a similar state of facts to have 
 existed in other States, and that the consensus of opinion was 
 that the proper remedy was a good workmen's compensation law. 
 
 PRINCIPLE OF THE LAW. 
 
 The principle of social justice upon which a workmen's 
 compensation law is based is that industry should bear the 
 burden of its accidents and distribute the cost to the consumers 
 of its products. (State ex rel Davis-Smith Co. vs. Clausen, 65 
 Wash. 156, 117 P. 1101, 37 L. R. A. N. S. 466; City of Milwaukee 
 vs. Miller (Wis.), 144 N. W. 188; Besnys vs. Herman Zohrlaut 
 Leather Co. (Wis.), 147 N. W. 37.) The Massachusetts In- 
 dustrial Accident Board has figured that the actual losses paid 
 the first year under their workmen's compensation act cost the 
 consumers a little less than one cent for every $10.00 of the price 
 of the product. 
 
 Under our present system practically all of our employers 
 carry liability insurance and the cost of this insurance is one of 
 the cost items in the price of the product, and in this way the 
 industry bears the burden and distributes to the consumer the 
 cost of the few industrial accidents for which the employer is 
 liable under our present system. But the trouble is that the 
 cases for which the employer is liable under our present system 
 are too few, and there is an enormous waste in paying them. And 
 the chief cause of the trouble is the fact that negligence is the 
 basis of liability. Statistics show that in each industry every 
 year there is bound to be a certain number of employees killed, 
 a certain number will have their fingers, or their hands, arms or 
 legs cut off and a certain number will be otherwise injured. It 
 is just as much an incident to the manufacture of a product 
 that men will be killed and injured as it is that machines will 
 be destroyed or damaged, or mules killed or injured, and the 
 injuries of men go into the product as much as the injuries to 
 plant and equipment. Yet, when a machine has to be repaired 
 or sold for junk, the employer charges it as a cost item, and 
 the consumer pays for it, and no one ever stops to ask whether 
 
43] 
 
 11 
 
 the damage was caused by the negligence of the employer or the 
 consumer, or whether the machine or the consumer was guilty of 
 contributory negligence. The breakdown. was treated as an 
 accident and an incident to the business. If a team of mules 
 runs away and breaks the driver's leg, smashes the wagon, kills 
 one of the mules and badly bruises the other, the employer 
 repairs the wagon, buys a new mule, gets a veterinary surgeon 
 for the other and feeds him until he gets well, and adds all 
 these charges as cost items in the price of the product and 
 the consumer pays for them, not because the consumer or the 
 mules or the wagon, or even the employer, were negligent or 
 guilty of contributory negligence, but because the accident was 
 an incident to the industry and a certain number of such acci- 
 dents are sure to happen every year. It is just as inherent for 
 accidents to happen in an industry as it is for mules to run away. 
 But the driver — not being a wagon or a mule, pays his own doc- 
 tor's bill and loses his wages until he gets well, because, in the 
 case given, he can show no negligence on the part of his employer. 
 His injury was just as much an incident to the industry as was the 
 injury to the wagon and mules, but the employer and the con- 
 sumer do not have to pay for the driver's injury. Perhaps on 
 the theory that the mules were fellow servants of the driver and 
 that his injury was caused by the negligence of the iriules in 
 running away. 
 
 HOW THE COMPENSATION LAW COMPENSATES. 
 
 The following is an estimate, based upon the Massachusetts 
 Statistics, of how the law proposed for this State will compensate 
 for this loss to injured workmen and their dependents: 
 
 Approximate loss of 50,000 injuries per year 
 
 Borne by Employer — 
 
 Approximate medical aid in all cases 
 
 Two-thirds of the approximate wage loss for disabili- 
 ties lasting over two weeks 
 
 Approximately 200 deaths at an average of $4,000.00 
 
 each 
 
 Total borne by employer 
 
 Difference borne by employee 
 
 Estimated as follows: 
 Approximate wage loss of two weeks waiting period . 
 One-third of approximate wage loss for disabilities 
 
 lasting over two weeks 
 
 $258,500 . 00 
 916,006.67 
 800,000.00 
 
 $367,490.00 
 458,003.33 
 
 $825,493.33 
 
 $2,800,000.00 
 
 1,974,506,67 
 
 $825,493. 3!i 
 
12 [43 
 
 As the compensation act will eliminate from thg costs the 
 lawyer's charges and all excessive medical and other charges, 
 according to these approximations injured employees will re- 
 ceive under the act about nine and one-half times what they now 
 receive. 
 
 THE COST OF COMPENSATION INSURANCE. 
 
 As compared to $412,500.00 the approximate amount now 
 paid by the employers to injured workmen, $1,974,506.67, 
 would be about 4.8 times as much. But this does not mean 
 that insurance for industrial accidents will cost the employers 
 4.8 times as much as it costs them now. Using the same basis 
 as above, if all the employers of the State had carried insurance 
 they would have paid in premiums approximately $718,000.00. 
 According to the 43rd Missouri Insurance Report, of the pre- 
 miums received for such insurance only about 55 per cent were 
 paid out in losses and 45 per cent represented the cost of ad- 
 ministration to the insurance companies. According to the 
 Third Annual Report of the Wisconsin Industrial Commission 
 (p. 19) the effect of workmen's compensation laws is to decrease 
 these costs of administration to about 30 per cent, so that under 
 the act about 70 per cent of the premiums will be used to pay 
 the losses. On this basis the cost of insurance to the employers 
 in round numbers will be approximately $3,037,000.00 including 
 the tax. As compared to $718,000.00, this would make the 
 cost to the employers about four and one-quarter times as much 
 as it costs them now. Reducing the premium figures about 10 
 per cent so as to allow for employers of. three or less employees, 
 would make the total premiums about $2,750,000.00, and the 
 cost to employers about 3.8 times as much as at present. These 
 figures refer to employers as a class and not to the individual 
 employers who are carrying insurance. Under the present law 
 there are thousands of small employers of more than three 
 employees who carry no insurance, and a large part of the in- 
 crease in the volume of premiums would come from them. Ac- 
 cording to the Third Annual Report of the Wisconsin Industrial 
 Commission (p. 18) the rates for compensation under the Wis- 
 consin law, the benefits under which are about 15 per cent 
 lower than those under the law proposed for Missouri, were at 
 first about three times higher than under the old system and 
 gradually dropped until they are now about two and one-quarter 
 times higher. The- Wisconsin Commission complains that as 
 
43] 
 
 13 
 
 compared to the Massachusetts rates the Wisconsin rates were 
 about 16 2-3 per cent higher. As Massachusetts is the one 
 State in which there have been kept accurate and comprehensive 
 statistics, all compensation rates are based on the experience 
 under the Massachusetts Act. The Massachusetts Act has 
 been amended and the rates under the amended act have not 
 yet beein computed, but the insurance department of that State 
 has announced that the rates under the new act will be substan- 
 tially the same as those under the old act, though, it may be 
 necessary to make considerable changes as betweeen classifica- 
 tions. The benefits payable under the'law proposed for Missouri 
 are about 20 per cent higher than those payable under the new 
 Massachusetts law. If the rates follow this basis the Missouri 
 rates will be 15 per cent higher than the Wisconsin rates and 
 20 per cent higher than the Massachusetts rates. In the follow- 
 ing table the first column shows the present Missouri rates for a 
 few selected industries, the second column shows, the probable 
 Missouri mean rates as obtained by adding 20 per cent to the 
 old Massachusetts mean rates (obtained by adding 40 per cent 
 to the approved minimum rates) and the third column shows 
 the probable Missouri mean rates as obtained by adding 15 per 
 cent to the new Wisconsin mean rates. These are mere approxi- 
 mations of the commission, but it is believed that they will give 
 a fair idea of what the new rates will be. 
 
 Industry. 
 
 
 2. 
 
 
 Prob. 
 
 1. 
 
 Mo. 
 
 Pres. 
 
 Mass. 
 
 Mo. 
 
 Basis. 
 
 SO. 42 
 
 $0.96 
 
 .52 
 
 .80 
 
 .90 
 
 2.80 
 
 .30 
 
 .90 
 
 .40 
 
 1.04 
 
 .25 
 
 .48 
 
 .57 
 
 1.50 
 
 .57 
 
 1.36 
 
 1.25 
 
 2.56 
 
 1.00 
 
 2.16 
 
 1.50 
 
 4.00 
 
 .35 
 
 .88 
 
 1.50 
 
 2.88 
 
 .55 
 
 1.60 
 
 .25 
 
 .72 
 
 .55 
 
 .88 
 
 .55 
 
 1.12 
 
 1.00 
 
 2.24 
 
 .75 
 
 1.60 
 
 .55 
 
 .88 
 
 3. 
 
 Prob. 
 Mo. 
 Wis. 
 
 Basis. 
 
 Bakers (bread, biscuit and cracl£ers) 
 
 Confectionery manufacturers 
 
 Ohemical manufacturers (n. u. c.) 
 
 Patent Medicine manufacturers 
 
 Carriage, Coach and Wagon manufacturers 
 
 Boot and Shoe manufacturers 
 
 Leather Dressers 
 
 Tanners - 
 
 Box manufacturers (with machinery) 
 
 Lumber Yard Employes (Com. yards) .... 
 
 Saw Mills 
 
 Arms (small) manufacturers 
 
 Boiler Makers 
 
 Brass Goods manufacturers or brass fdry. . 
 
 Clock manufacturers 
 
 Cutlery manufacturers 
 
 Electrical Apparatus manufacturers 
 
 Foundry (n. o. c.) 
 
 Galvanized Iron Workers 
 
 Hardware manufacturers (n. o. c.) 
 
 SI. 71 
 1.45 
 2.42 
 
 .81 
 1.09 
 
 .58 
 1.29 
 1.29 
 3.70 
 1.61 
 5.81 
 
 .81 
 2.40 
 1.36 
 
 .64 
 1.45 
 1.13 
 2.70 
 1.36 
 
 .97 
 
14 
 
 [43 
 
 Industry. 
 
 Jewelry manufacturers 
 
 Machine Shop with foundry ■ ■ ■ ■ 
 
 Machine Shop without foundry 
 
 Radiator manufacturers • _;^- • 
 
 Saw manufacturers 
 
 Silverware manufacturers 
 
 Stove manufacturers (not sheet iron) 
 
 Tacli manufacturers 
 
 Tool manufacturers (not mach. mfrs.) 
 
 Coal Merchants — by water and land 
 
 Coal Merchants — by land only 
 
 Gas Works 
 
 Ice Dealers 
 
 Laundries 
 
 Optical Goods manufacturers 
 
 Box manufacturers solid, no paper making 
 
 Writing and Blank Book Paper mfrs 
 
 Printers — steam 
 
 Publishers 
 
 Newspapfer Oflces 
 
 Rubber Boot and Shoe manufacturers 
 
 Rubber Goods manufacturers (n. o. c.) 
 
 Quarries — blue stone, etc 
 
 Bleacheries 
 
 Clothing manufacturers 
 
 Cotton Spinners 
 
 Hat manufacturers (straw) 
 
 Hat manufacturers (not straw) 
 
 Hosiery manufacturers 
 
 Knitting Mills 
 
 Silk manufacturers , 
 
 Textile manufacturers (excl: shoddy) 
 
 Thread manufacturers (cotton or linen) 
 
 Wool Spinners (excl. shoddy) 
 
 Chair manufacturers 
 
 Carpenters — construction 
 
 Masonry (n. o. c.) 
 
 Pjiinters (away from shop) 
 
 Painters (interior) 
 
 Plumbers 
 
 Iron Work — erecting steel structures 
 
 Paviors 
 
 Averages for the 62 industries 
 
 Number of times present average Missotiri rate 
 
 1. 
 Pres. 
 Mo. 
 
 .33 
 ,00 
 .60 
 .35 
 .35 
 .35 
 .25 
 .35 
 .30 
 .00 
 .90 
 .75 
 .00 
 .75 
 .25 
 .80 
 .40 
 .25 
 .25 
 .25 
 .50 
 .50 
 .00 
 .40 
 .15 
 .40 
 .15 
 .30 
 .30 
 .30 
 .15 
 .40 
 .40 
 .40 
 .60 
 .25 
 .50 
 50 
 00 
 00 
 .50 
 .00 
 
 .805 
 
 2. 
 
 Prob. 
 
 Mo. 
 
 Mass. 
 
 Basis. 
 
 .64 
 
 1.92 
 
 1.28 
 
 1.20 
 
 .88 
 
 .64 
 
 1.04 
 
 .80 
 
 .80 
 
 .60 
 
 .56 
 
 .24 
 
 .80 
 
 .24 
 
 .48 
 
 1.60 
 
 1.20 
 
 .96 
 
 .96 
 
 .96 
 
 .96 
 
 1.60 
 
 6.00 
 
 1.44 
 
 .48 
 
 .56 
 
 .40 
 
 .64 
 
 .56 
 
 .56 
 
 .40 
 
 .56 
 
 .56 
 
 .56 
 
 1.20 
 
 4.19 
 
 6.00 
 
 3.89 
 
 2.10 
 
 1.79 
 
 12.00 
 
 2.40 
 
 1.774 
 2.20 
 
 In comparing his rates as given above the particular em- 
 ployer must bear in mind that these are mean rates and that 
 under the merit rating schedule increases and deductions as 
 high as 40 per cent are allowable, and that the Massachusetts 
 experience has shown that some of the rates for particular classes 
 are too high and some are too low under the conditions existing, 
 in Massachusetts, and the new rates will make considerable 
 changes as between the various classifications, though the 
 
43] 15 
 
 general average may be unchanged. The new Wisconsin rates 
 indicate the general nature of these changes under Wisconsin 
 conditions. He should also bear in mind that conditions in 
 Missouri may be different than those in Massachusetts and 
 Wisconsin and therefore may justify a different rate. The 
 above table is given more to show the general average than 
 the increases in particular classifications. This general average 
 shows that the mean rates under the proposed law ought not to 
 be more than 2.2 or 2.45 times the present Missouri rates 
 and as the industrial commission is given the power to regulate 
 the rates, and the facilities for obtaining the statistics nec- 
 essary to do it intelligently, it is reasonable to assume that 
 Missouri will get substantially the above rates, with due allow- 
 ances for merit rating and differences in conditions. 
 
 FUNDAMENTAL LEGAL CHANGES INVOLVED IN THE 
 COMPENSATION LAW. 
 
 Form of the Law and the Employments Covered. 
 
 Workmen's compensation laws may be divided into two 
 general classes, compulsory and elective, according as the 
 changes they make in the fundamental rights and legal status 
 of both employer and employee are imposed upon the parties 
 with or without their consent. Of elective laws there are two 
 classes according as the law establishes a presumption of election 
 that the parties Jhiave or have not elected to come under the law 
 without an affirmative act of election. The law recomrnended 
 by the commission includes both features of an elective law. 
 As to employments of farm labor, domestic servants and of three 
 or less employes, the presumption is that the parties have elected 
 not to come under the law until by an affirmative act they elect 
 to come under it. As to all other employments, the presump- 
 tion is that the parties have elected to come under the law until 
 by an affirmative act they elect not to come under it. Under 
 these conditions the benefits of the law are available to all em- 
 ployments in the State. Of elective laws there are also two other 
 classes, according to the compulsion put upon the parties to 
 come under the law by the retention or removal of the defenses 
 of contributory negligence, assumption of risk and fellow ser- 
 vant, and according to whether election should be; iiiade before 
 or after the injury. The law recommended by the commission 
 
16 [43 
 
 puts no compulsion upon the parties to employments of farm 
 labor, domestic servants or of three or less employes, but as to 
 all other employments it seeks to compel an election to come 
 under it before the injury by abolishing these three defenses for 
 an employer who elects not to come under it, irrespective of the 
 election of his employee, and leaving the defenses for an employer 
 who has elected to come under the act against an employee who 
 has elected not to come under it. This form of the law was 
 adopted for the following reasons: 
 
 Constitutionality of Compulsory and Elective Laws. 
 
 As to the Employer. 
 
 As to the employer, the chief characteristic of a compulsory 
 law is that without his consent it imposes upon him a new lia- 
 bility irrespective of "his negligence, and it is contended that the 
 imposition of such a liability without the consent of the employer 
 is taking his property without due process of law, in violation of 
 Section 1 of Amendment XIV to the federal constitution, and 
 Section 20 of Article- II of the Missouri Constitution. 
 
 A compulsory law has been held to violate these sections 
 in but one cases. (Ives vs. South Buffalo Railway Co. 201 
 N. Y. 271, 94 N. E. 431, 34 L. R. A. N. S. 162.) In all the other 
 cases a compulsory law has been held not to violate these or any 
 other sections of the federal or state constitutions, so far as the 
 employer is concerned. (State ex rel Davis-Smith Co. vs. 
 Clausen, 65 Wash. 156, 117 P. 1101, 37 L. R. A. S. N. 466; 
 StoU vs. Pacific Coast S. S. Co. [Wash.] 205 Fed. 169; State vs. 
 Seattle [Wash.] 132 P. 45; Stete vs. Mountain Timer Co. [Wash.] 
 135 P. 645; Cunningham vs. N. W. Imp. Co. 44 Mont. 180.) 
 And the Supreme Court of the United States will in all prob- 
 ability uphold the constitutionality of such an act. (See the 
 Second Employers' Liability Cases, 223 U. S. 1; Noble State 
 Bank vs. Haskell, 219 U. S. 104, 32 L. R. A. N. S. 1062.) The 
 doubt as to constitutionality caused by the Ives case has caused 
 many States to adopt an elective law, and is one of the reasons 
 why the commission has decided upon an elective law. 
 
 The decisions are uniform that elective laws though they 
 impose a new liability, impose it with the consent of the em- 
 ployer, and not violate any consitutional provision, irrespective 
 of which way the presumption of election is established. (Hill 
 vs. Union Electric Light & Power Co., , Mo. 
 
43] 17 
 
 169 S. W. 345, 361-2; Deibeikis vs. Link Belt Co. [111.] 104 N. E. 
 211; Crooks vs. Tazewell Coal Co. [111.] 105 N. E. 132; Dietz vs. 
 Big Muddy Coal Co. [111.] 105 N. E. 289; Opinions of Justices 
 209 Mass. 607, 96 N. E. 308; Young vs. Duncan [Mass.] 106 N. E. 
 I.; Matheson vs. Minneapolis St. Ry. Co. [Minn.] 148 N. W. 71; 
 Sexton vs. Newark District Tel. Co. [N. J.] 86 A. 450; Albanese 
 vs. Stewart, 138 N. Y. S. 942; 78 N. Y. Misc. 581; Pensabone 
 vs. F. & J. Auditore Co., 138 N. Y. S. 942, 78 N. Y. Misc. 538; 
 State ex rel Yaple vs. Creamer, 85 Ohio State 349, 97 N. E. 602, 
 39 L. R. A. N. S. 694; Borgnis vs. Falk Co., 147 Wis. 327, 133 
 N. W. 209, 37 L. R. A. N. S. 489; City of Milwaukee vs. Miller 
 [Wis.] 144 N. W. 188.) It has been urged that the employer's 
 three defenses may not be removed, but the decisions are that 
 the removal of these defenses, even for the purpose of coercing 
 the employer to elect to come under the law, does not violate 
 any constitutional provision. (The Second Employer's Lia- 
 bility Cases, 223 U. S. 1, 49-50; see also all the cases last above 
 cited.) 
 
 As to the Employee. 
 
 As to the employee the chief characteristics of a compul- 
 sory law are, that without his consent it deprives him of his 
 right to sue his employer in the courts, and to have the liability 
 determined, and his damages assessed by a jury. While there 
 are authorities holding that a cause of action for tort may be 
 taken away by Statute after it has accrued, but before it has 
 been reduced to judgment (Bennett vs. Hargus, 1 Neb. 419), 
 it may be conceded that after a cause of action has accrued 
 it is a property right which cannot be taken away by Statute 
 (Eastman vS. Clakamas County, 32 Fed. 24), so that the act 
 can only apply to injuries happening after it takes effect. 
 (Arizona, etc. Ry. Co. vs. Clark, 207 Fed. 817, 125 C. C. A. 
 305; Coakly ys. Mason Mfg. Co. [R. I.], 90 A. 1073.) 
 
 As to such injuries the authorities are uniform that all the 
 uninjured workman has is a mere expectancy, which is not 
 property, and which may be taken away without violating the 
 due process clauses of the constitutions (Kirby vs. Railroad, 
 76 Pa. St. 506; Martin vs. Railroad, 203 U. S. 284; The Second 
 Employers' Liability Cases, 223 U. S. 1; Mining Co. vs. First- 
 brook, 36 Colo. 498; Templeton vs. Linn County, 22 Ore. 313, 
 15 L. R. A. 730; Williams vs. Galveston, 41 Tex. Civ. 63, 90 S.W. 
 505; Sawyer vs. Railway, 49 Tex. Civ. App. 106, 108 S. W. 718; 
 Railway Co. vs. Sowers, 213 U. S. 55; Opinion of Justices, 209 
 
18 
 
 [43 
 
 Mass. 607;Sexton vs. Telegraph Co. [N. J.] 86 Atl. 451; State ex 
 rel Davis-Smith Co. vs. Clausen, '65 Wash. 156, 37 L. R. A. N. S. 
 466; Borgnis vs. Falk Co. 147 Wis. 327, 37 L. R. A. N. S. 409; 
 State ex rel Yaple vs. Creamer, 85 Ohio State, 349, 39 L. R. A. 
 N. S. 694; Deikeibis vs. Link Belt Co. [111.], 104 N. E. 211). 
 As an essential characteristic of a compulsory law is to abolish 
 the cause of adction ofr negligence, and have the case determined 
 and the damages fixed by a commission instead of in the courts, 
 more serious difficulty is encountered in Sections 10 and 28 of 
 Article II of the Missouri Constitution, providing that the courts 
 shall be open to every person, and a certain remedy afforded 
 for every injury to person or property, and that the right of 
 trial by jury as heretofore existing shall remain inviolate, for 
 some cases hold that such a law does violate these sections. 
 (Mattison vs. Astoria, 39 Ore. 577, 65 P. 1066, 87 Am. St. R. 
 687; Botdorf vs. Oregon City [Ore.] 100 P. 937; Ives vs. South 
 Buffalo Railway Co., 201 N. Y. 271, 94 N. E. 431, 34 L. R. A. N. 
 S. 152.) Both of these difficulties are overcome by an elective 
 law, such as the proposed law, which depends upon consent and 
 is virtually a contract between the parties, the election operating 
 as a waiver of all other rights (State ex rel Yaple vs. Creamer, 
 85 Ohio State 349, 97 N. E. 602, 39 L. R. A. N. S. 694; 24 Cyc 194; 
 Deikeibis vs. Link-Belt Co. [111.], 104 N. E. 211; Opinion of the 
 Justices, 209 Mass. 607, 97 N. E. 308; Young vs. Duncan [Mass.], 
 106 N. E. 1; Matteson vs. Minneapolis St. Ry. [Minn.], 148 
 N. W. 71; Borgnis vs. Falk Co., 147 Wis. 327, 133 N. W. 209, 
 37 L. R. A. N. S. 489; Sexton vs. Telegraph Co. [N. J.], 86 Atl. 
 451.) 
 
 Election Before the Injury, the Removal of the Three Defenses, 
 and a Liability) Law With the Defenses Removed. 
 
 It is not to be expected that an employer is going to elect 
 to come under a law which nearly triples the cost of his insurance 
 and makes employers as a class pay almost five times as much 
 as they now pay, without some compulsion of some sort. This 
 compulsion is furnished by the removal of his three defenses and 
 the additional burdens imposed in case he elects not to come 
 under the law. If the schedule of compensation is properly 
 balanced with prevailing conditions, the cost of liability in- 
 surance without the defenses and with the other -burdens will 
 about equal the cost for compensation insurance under the act. 
 There being no financial incentive for the employer to reject 
 
43] 19 
 
 the act, he would rather come under it as it is far superior to 
 the old system. And here it is well to call attention to the fact 
 that in those States, notably California, where too high a sched- 
 ule was first imposed, the first laws were a failure because the 
 insurance rates for liability were lower than those for compensa- 
 tion. A very careful attempt has been made to adjust the 
 schedule under the proposed act to the conditions prevailing 
 in this State. As heretofore shown prevailing conditions such 
 as the contingencies of litigation', the delays in our courts, the 
 contingent fee contract, the excessive contingent medical and 
 other charges, the ignorance of the injured workman, his necessity 
 and the various other phases of our social, legal and industrial 
 conditions would all tend to limit the amounts paid for negligence 
 cases with the defenses removed, and consquently tend to keep 
 down the cost of liability insurance. Future Legislatures, and 
 those who want the benefits of the proposed law increased, 
 should bear this in mind, as the success of the law depends 
 upon a proper balance in this respect. 
 
 A corresponding compulsion is likewise imposed upon the 
 employee. In order for the law to be valid, it must affect both 
 parties, and their minds must meet in an election by each to 
 come under and be bound by the law. The law could not 
 apply to both unless both elect to come under it. The employee 
 must feel that if he does not elect to come under the law he will 
 suffer some disadvantage not suffered by employees who do 
 -elect, otherwise there will be no inducement for him to elect to 
 come under the act, and consequently no meeting of his mind 
 with the mind of his employer. This compulsion is furnished by 
 the provision which leaves to the employer who has elected to 
 come under the law his defenses against an employee who elects 
 not to come under it. 
 
 The proposed bill requires both employer and employee to 
 make their election before the injury, for the reason that election 
 in either party after the injury is not only illegal, impractical 
 and unfair to both parties, but is inconsistent with all the prin- 
 ciples upon which the bill is founded, and would make the law a 
 failure. Owing to the fact that the payments are extended over 
 a long period, one of the essentials of the law is that the certainty 
 of receiving his payments should be guaranteed to the employee. 
 To that end the law requires the employer to insure against his 
 liability for compensation, and requires his compensation policy 
 to be filed with and approved by the commission. The em- 
 
20 [43 
 
 ployer insures before the injury, and consequently must elect 
 before the injury. To require him to insure after the liability 
 had accrued, and only for the specific injuries for which he elects 
 to pay compensation, would destroy the whole insurance system. 
 Besides the rates for insuring employees who had elected not to 
 come under the act would be lower, and the employer would 
 have to know at the time he took out his policy just how many 
 of his employees were under, and how many not under, the 
 act in order to determine the amount of his premiums. The 
 persons who advocated elections after the injury frankly ad- 
 mitted that its effect would simply be to establish a scheme of 
 charity, under which a charitably inclined employer might 
 elect to compensate those of his injured employees who could 
 not recover against him for negligence. The average of the 
 German figures for accidents due to fault of employer (16.45 
 per cent), those due to fault of fellow servants (4.87 per cent) 
 and those due to the fault of both employer and employee 
 (3.39 per cent) show that in but in 24,71 per cent of the cases 
 there is negligence on the part of the employer for which the 
 employee could recover with the three defenses removed. Ap- 
 / plying this percentage makes but 12.355 cases out of 50,000 for 
 which the employer would be liable with the defenses removed, 
 and it is not reasonable to assume that employers will be so 
 charitably inclined as pay the other 37,645 cases in which no 
 liability would exist. As above shown an elective act is a con- 
 tract between the employer and his employee, and can only be 
 sustained on the grounds of contract (Deibeikis vs. Link-Belt 
 Co. [111.], 104 N. E. 211), and the employer must elect to be 
 bound by it before the injury (Young vs. Duncan [Mass.] 
 106 N. E. 1.) Until there is also an election by the employee 
 there is no contract, and there can be no contract. Until the 
 employee elects he is not bound. A contract which binds only 
 one party is unilateral, lacks mutuality of assent and obligation, 
 is no contract at all, and is void under the law (9 Cyc. 245-6; 
 Laclede Construction Co. vs. Tudor Iron Works, 169 Mo. 147.) 
 To allow the employee the right of election after the injury 
 would violate these fundamental principles of the law of con- 
 tracts. 
 
 The reasons sometimes assigned that it is unfair to make 
 the 24.71 per cent of cases in which there is negligence, divide 
 their compensation with the 75.29 per cent in which there is 
 no negligence, and that it is unfair to make the serious injuries 
 
43] 21 
 
 divide their compensation with the minor injuries, apply alike 
 to the argument for election after the injury, and to the argu- 
 ment against any cbmpensation law and in favor of a liability 
 law with the defenses removed, such as was recommended by 
 the last convention of the State Federation of Labor. Aside 
 from the fact that any serious inequalities on these grounds are 
 covered by the 15 per cent penalty, both of these arguments 
 are unsound for the same reasons. Both election after the in- 
 jury and a liability law mean that the action would be founded 
 on proof of the employer's negligence and a resort to the courts, 
 with a continuance of all the present abuses. The very ptirpose 
 of a compensation law is to do away with the idea of negligence 
 altogether and base recovery on the simple fact that the injury 
 arose out of and was received in the course of the workman's 
 employment, and results in other States have shown that the 
 lawyer and the courts will be eliminated and all of the present 
 abuses will be abolished. 
 
 According to the First Massachusetts report (pp. 7, 8, 
 10, 19, 323-24), assuming that the serious unspecified injuries 
 causing permanent partial disability occurred with the same 
 relative frequency as the serious special injuries (loss of fingers 
 and toes not being here classed as serious), of 90,168 accidents 
 there were: 
 
 Deaths 
 
 Injuries totally incapacitating between 13 weeks and 6 months . 
 
 Injuries totally incapacitating over. 6 months 
 
 Unspecified permanent total disabilities 
 
 Special permanent total disabilities 
 
 Special permanent partial disabilities 
 
 Approximate unspecified permanent partial disabilities 
 
 Total serious cases 
 
 474 
 12,75 
 
 272 
 4 
 3 
 
 104 
 
 158 
 
 2290 
 
 That is to say that of 90,168 accidents but 2290, or only 
 about 2J per cent, were serious enough for the injured work- 
 men to make the claim that they might be dividing their com- 
 pensation with the ones receiving minor injuries. But under a 
 compensation law, are the serious injuries being treated unfair or 
 compelled to share compensation with the minor injuries? Of 
 the 474 Massachusetts deaths, 290 were under the act and 
 184 were not under it. The dependents of the 290 will receive 
 $395,541.89 (p. 326). On pages 327-332 of the Massachusetts 
 report will be found the sad history of 86 of the 184. Under 
 the act the dependents of these 86 would have received $166,288- 
 
22 [43 
 
 yet in only forty-one cases the dependents had collected $61,722.- 
 42 in full for their claims, in twenty suits were pending or 
 threatened, in ten settlements were pending and in fifteen 
 there was no settlement at all. The situation in Missouri is 
 and will be much worse undej" any system which makes negli- 
 gence the basis of recovery. Before the injury the workman 
 never knows whether he will be one of the 25 per cent who can 
 recover for negligence with the defenses removed, or one of the 
 75 per cent who received no compensation at all, and this ele- 
 ment of probability alone should be a sufficient reason for his 
 wanting to be under the compensation law. If it is not, the 
 law allows him the right to elect not to come under it before the 
 injury. As hereafter shown, the basis of the law is the average 
 not of all the verdicts in reported cases, but of only the highest, 
 and the employee, in employments subject to serious injuries, 
 by electing to come under the law, does not put himself in the 
 position sharing his compensation with the minor injuries, 
 but simply puts himself in the class of the average of the highest 
 verdicts. All he gives up is the chance to get more than the 
 average of the highest verdicts, if, by odds of three to one against 
 him, he should chance to receive an injury for which he could 
 get more than the average of the highest verdicts. An em- 
 ployee who wants to take this chance should by all means 
 elect not to come under the law, but he should not by his oppo- 
 sition seek to deprive the vast army of his fellows from the 
 benefits which they will receive under it. 
 
 In most of the few States where the compensation law 
 provided for election after the injury, the law was amended 
 to provide for election before the injury, and in those States 
 where labor rejected a compensation law and had a liability law 
 enacted, the liability law was subsequently repealed and a com- 
 pensation law enacted at the request of organized labor. 
 
 The loudest advocate of election after the injury and of a 
 liability law with the defenses removed instead of a compensa- 
 tion law is the lawyer whose business will be destroyed by the 
 law, and who hopes to retain it with election after the injury 
 so that he may persuade the injured workman to reject the act 
 and take his chances in the courts under all the present abuses. 
 To leave open such a door to injured workmen, most of whom do 
 not understand the law and will take the advice of the lawyer, 
 would be extremely dangerous from the standpoint of public 
 policy, and a very bad thing for injured employees as a class. 
 
43] 23 
 
 Wherever organized labor, uninfluenced by special interests, 
 has declared for election after the injury, or has rejected a com- 
 pensation law, it has been for the reason that employers were 
 opposing a good compensation law, and this stand was taken 
 to force them to favor a fair one. As the proposed law is fair 
 to the employee, there is no reason for labor to take this stand. 
 
 Employments of Farm Labor, Domestic Servants, and Three 
 
 or Less Employers. 
 
 A large number of the workmen's compensation acts ex- 
 clude farm labor and domestic service altogether, and quite a 
 few exclude employments of a small number of employees, and 
 such exclusions have been held to be constitutional (Opinion 
 of the Justices, 209 Mass. 607, 96 N. E. 308; Matheson vs. 
 Minneapolis St. Ry. [Minn.], 148 N. W. 71; Borgnisvs. Falk Co., 
 147 Wis. 327, 133 N. W. 209, 37 L. R. A. N. S. 489). But the 
 proposed law does not exclude these three classes altogether. 
 Instead, it merely distinguishes between them and other 
 classes of, employments by reversing the presumption of election, 
 and by not imposing upon them the compulsion involved in the 
 removal of the three defenses. In short, it leaves the parties to 
 employments of farm labor, domestic servants and three or less 
 employees, free to stay out from, or come under, the act without 
 any compulsion whatever. The reasons for this are as follows: 
 As originally enacted both the Wisconsin and California acts 
 established no presumption of election for the employments cov- 
 ered, and required an affirmative act of both parties to come un- 
 der the law. Both of these acts were amended so as to estab- 
 lish a presumption of election and require an affirmative act to 
 elect not to come under the law, because it was found that they 
 were not a success, for on account of natural inertia and lack of 
 information, very few employers and employees came under the 
 law. Compensation laws are a new idea, and the parties to these 
 three employments are generally slow to understand the purpose 
 , and workings of such a law, and might oppose it for no other reason 
 than that they did not understand it. In addition to the new 
 liability imposed, such a provision as the requirement of insur- 
 ance might stir up strong opposition. It is therefore not only 
 wise, but fair, to enact the law in such a form that the parties 
 to these employments may have an opportunity to avail them- 
 selves of its benefits as soon as, and not until, they learn of 
 and understand its advantages, without any compulsion and 
 
24 
 
 [43 
 
 without a presumption which their lack of information makes 
 unjust. The social principle upon which such laws are founded 
 is that industry should bear the burden of its accidents and dis- 
 tribute the cost upon the consumers of its products, as it does 
 other cost items. One of the principles of justice upon which 
 this proposition is founded is, that modern industry is so well 
 organized that this distribution can be easily, intelligently and 
 universally done. It therefore follows as a corollary that there 
 should be no compulsion to any employment which is not so 
 organized that it can easily, intelligently and universally dis- 
 tribute this cost. For these reasons domestic service, which 
 is hardly an industry, farm labor and employments of three or less 
 employees, are properly excepted from the compulsion and the 
 presumption. 
 
 ADMINISTRATION OE THE LAW BY A COMMISSION. 
 
 Influenced probably by Montesquieu's misunderstanding 
 of the English constitution, the framers of our constitution 
 divided the powers of government into three distinct depart- 
 ments — the legislative, executive arid judicial, and provided 
 that each should be confided to a separate magistracy and that 
 no person or collection of persons charged with the exercise of 
 powers belonging to one of these departments should exercise 
 any of the powers properly belonging to either of the others. 
 
 This theory may have been a sound one for a people whose 
 development and governmental needs were the same as those 
 of the American people at the time the constitution was adopted, 
 but the needs and development of the American people today 
 are such that a strict adherence to the original theory would 
 retard progress, make government inefficient, and cause much 
 dissatisfaction. No tw6 departments of the government are 
 the objects of more criticism than the legislative and judicial 
 and the trend of public opinion is that certain powers now ex- 
 ercised by these two departments could be more efficiently and 
 effectively exercised by an administrative or quasi-administrative 
 body. In a sense there is no more flagrant violation of the original 
 theory than is found in the various commissions or boards, such as 
 the Interstate Commerce Commission, the public utility com- 
 missions, the workmen's compensation commissions, the industrial 
 commissions and the others, which exercise powers which are in- 
 herently legislative, executive and judicial, yet the need and 
 the sentiment is such that the courts, on one ground or the other 
 
43] 25 
 
 have held that vesting all these powers in one administrative 
 body is not a violation of the constitutions. (Interstate Com- 
 merce Commission vs. Brimson, 154 U. S. 447; Interstate Com- 
 merce Commission vs. C. N. 0. & T. P- Ry. Co., 167 U. S. 479, 
 501; Interstate Commerce Commission vs. Steamship Co., 224 
 U. S. 474, 483; L. & N. R. R. Co. vs. Garrett, 231 U. S. 298, 
 305; 8 Cyc. 830 et seq.; State ex rel. Manning vs. Higgins, 125 
 Mo. 364; State vs. Hathaway, 115 Mo. 36; St. Louis vs. Mey- 
 rose Lamp Mfg. Co., 139 Mo. 560; State vs. Doerring, 194 Mo. 
 398; State ex rel. Missouri Southern R. Co. vs. Public Service 
 
 Commission, —. — Mo. , 168 S. W. 1156; Borgnis vs. Falk 
 
 Co., 147 Wis. 327, 133 N. W. 209, 37 L. R. A. N. S. 489; State 
 ex rel. Yaple vs. Creamer, 85 Ohio State 349, 97 N. E. 602, 39 
 L. R. A. N. S. 694; State vs. Mountain Timber Co., 75 Wash. 
 581, 135 P. 645.) The subject of workmen*s compensation and 
 the closely related subjects covered by the industrial commission 
 act are comparatively new and their details must be worked 
 out by careful study and investigation and accommodated to the 
 developments under the laws. Accordingly the bills are so 
 drawn that while the legislative powers reside in the legislature, 
 resort must be had to the legislature to change only the broad 
 outlines and fundamental rights, and the details are left to be 
 worked out and changed by the commission. Such for example 
 are the powers in the Commission to prescribe safety rules and 
 regulations, the forms of procedure, the percentages of disability, 
 to regulate insurance rates, policy forms and coverage, the forms 
 and contents of reports of accidents, the charges of lawyers, 
 doctors, hospitals and undertakers and other details of the laws. 
 As to the judicial department the change is more sweeping. 
 Except by consent of the parties the compensation law does 
 not take any part of any function away from the judicial de- 
 partment. With their consent it removes from the judicial 
 department the whole field of cases arising out of industrial 
 accidents (probably more than 10 per cent of all judicial busi- 
 ness), and first sifts it through the administrative powers of 
 the Commission. The results of this sifting process in elimi- 
 nating litigation are wonderful. The following are the. statistics 
 taken from the Statistical Bulletin for 1913 of the California 
 Industrial Accident Board (pp. 5, 6, 7, 22), the Third Annual 
 Report of the Industrial Commission of Wisconsin (pp. 3, 6) 
 and the First Annual Report of the Massachusetts Industrial 
 Accident Board (pp. 10, 24.) 
 
26 
 
 [43 
 
 
 California. 
 
 Wisconsin. 
 
 Massachusetts. 
 
 Number of accidents in one year covered by the law 
 
 Number compromised without a hearing 
 
 Number heard by the Industrial Commission 
 
 Number appealed to the Courts 
 
 1844 
 
 1772 
 
 72 
 
 1 
 
 10.127 
 
 9,897 
 
 230 
 
 13 
 
 72,662 
 
 72,260 
 
 402 
 
 26 
 
 
 
 On this basis of 50,000 accidents a year in Missouri only 
 eighteen would get into the courts, whereas now such cases 
 constitute more than 10 per cent of all judicial business. 
 
 Almost all the schedules fix the compensation for a limited 
 number of specified injuries and leave the employer and em- 
 ployee to figure out the compensation for all other injuries as 
 best they may, either from the wage loss or by comparing the 
 injury with those specified. This, leads to quite a number of 
 disputes and is the sole reason for many hearings. The provi- 
 sions of the proposed law, by which the commission is required 
 to investigate and determine the various percentages of disabil- 
 ity for all injuries, and on receipt of a notice of accident or 
 claim for compensation, to recommend to the parties a settle- 
 ment based on the proper percentage of the particular disability, 
 ought to tend to increase the number of compromises and cor- 
 respondingly reduce the number of hearings and the subsequent 
 litigation. It will also tend to make the compromises fair 
 and avoid legal and other expense. 
 
 The bill recommended by the majority of the preceding 
 Commission on Employers' Liability and Workmen's Compen- 
 sation followed substantially the New Jersey plan of providing 
 that disputes might be submitted to the judge of the Circuit 
 Court. The minority bill provided for the appointment of a 
 commissioner in each county to determine such disputes. Nei- 
 ther bill adopted the plan of a commission. According to the 
 Report of the New Jersey Employers' Liability Commission for 
 1913 (pp. 5, 8, 19) only about 20 per cent of the employers re- 
 ported their accidents, and of the reported cases 4 per cent failed 
 to receive the compensation due, an additional 5 per cent were 
 settled in an irregular and faulty manner, and of 132 fatal cases 
 entitled to compensation 39 failed to receive any compensation 
 at all, and the commission was divided on the question as to 
 whether these and other abuses did not justify the establish- 
 ment of a commission to hear cases and administer the law. 
 The Report on the Operation of State Workmen's Compensation 
 Laws by the Commission of the American Federation of Labor 
 
43] 27 
 
 and the National Civic Federation (pp. 43-48) sets forth many 
 additional reasons why a law administered by a commission is 
 better than the New Jersey plan and the trend of opinion is in 
 favor of an industrial commission such as is provided by the pro- 
 posed laws. 
 
 The supervisory and advisory powers given the industrial 
 commission are such that there will be no need of lawyers or 
 litigation, and no such thing as, an injured man not knowing 
 that he is entitled to compensation or being afraid to claim it, 
 or of being imposed upon. No settlement is valid until ap- 
 proved by the commission,' and the law provides a jail penalty 
 for an employer who discharges an employee for claiming com- 
 pensation or exercising any of his other rights under the act. 
 The employer is required to report the injury within ten days 
 and on receipt of notice thereof the commission must imme- 
 diately send both parties the proper blanks which must be prompt- 
 ly returned with the necessary information. Upon receipt of 
 this the commission immediately advises both parties of the 
 amount due and recommends a iasis of settlement. If the parties 
 are unable to agree upon a settlement satisfactory to the com- 
 mission the case is then heard. Immediate relief is afforded by 
 temporary awards; proceedings are summary and without regard 
 to the rules of evidence or the forms of law, and every provision 
 is made for speedy hearings and adjustments without the necessity 
 of a resort to the courts. 
 
28 
 
 [43 
 
 Principal Features of the Compensation Law, 
 
 THE SCHEDULE 6F COMPENSATION. 
 
 Accommodating the Schedule to Conditions. 
 
 Too much emphasis cannot be laid upon the fact that the 
 success or failure of an elective compensation law depends 
 upon the degree to which the benefits payable under the sched- 
 ule approximate the amounts which could be collected at com- 
 mon law for negligence with the defenses removed, under the 
 conditions as they exist in the particular State. The conditions 
 now prevailing in Missouri such as the contingencies of litigation, 
 the delays in our courts, the contingent fee contract, the ex- 
 cessive contingent medical and other charges, the large number 
 of injuries for which it does not pay to make a claim, the "claim 
 agent," the fraudulent or inadequate settlement, the ignorance 
 of the injured workman, his necessity, the possibility that de- 
 pendents may make no claim and the various other phases of 
 our social, legal and industrial conditions would all tend to limit 
 the amounts paid for negligence cases with the defenses re- 
 moved and would consequently tend to make the cost of lia- 
 bility insurance less than that for compensation. These are the 
 main conditions which ultimately tend to keep down the sched- 
 ule of compensation, and the benefits under the schedule can 
 only be increased as the conditions improve. 
 
 Equally as important at the start is the fact that Missouri 
 conditions do not alone control the situation. If an appreciably 
 greater burden is put upon industry in Missouri than is imposed 
 upon industries in other states with which we compete, to that 
 extent is our industry at a disadvantage, and not only the em- 
 ployer, but his employee as well, will feel the effects. The largest 
 single cost item in the product is labor, and if the price of the prod- 
 uct must be reduced to meet competitive conditions the wages 
 of labor as well as all other cost items must also be reduced. 
 As above shown the schedule is so drawn that Missouri's employ- 
 ers will get rates but slightly more than the Massachusetts rates 
 which are from 1 per cent to 40 per cent lower than those of any 
 
43] 29 
 
 State in the United States. As the industrial coinmission has 
 power to regulate these rates it is safe to say that under the 
 proposed law the cost of compensation insurance in this State 
 will not be greater than in any other State under a compensation 
 law. Twenty-four States already have such laws and the others 
 are gradually falling into line. The proposed law thus sub- 
 stantially equalizes Missouri conditions with those of other 
 States. 
 
 Basis of Maximum Compensation. 
 
 The schedule was accommodated to Missouri conditions 
 on the following basis: As the compensation for all other dis- 
 abilities is proportionate to and computed on the basis of total 
 permanent disability, the maximum compensation to be paid for 
 that disability was taken as a standard. The policy of our law 
 as expressed in Sections 5425 and 5427 of the Revised Statutes 
 of Missouri of 1909 is that the maximum amount recoverable for 
 death (which is one of the total permanent disabilities) by 
 wrongful act, should be $10,000.00. As shown, less than 50 per 
 cent of this amount actually reaches the injured person or his 
 dependents, and the maximum compensation was therefore fixed 
 at $5,000.00, which is about the present value of the maximum 
 compensation of $15.00 per week for 400 weeks. There are oc- 
 casional cases where for total permanent disabilities other than 
 death, verdicts have exceeded $10,000.00, but the average of the 
 eight cases of permanent disability other than death affirmed 
 by the Supreme Court from the beginning of the October term, 
 1911, to the beginning of the October Term, 1913, as found from 
 237 Mo. 109 to 252 Mo. 409, is only $10,253.00, the highest being 
 for $15,000.00 and the lowest for $8000.00. The average of the 
 verdicts in the Court of Appeals is much lower as their jurisdic- 
 tion is limited to $7500.00. At the last session of the General 
 Assembly there was considerable sentiment that the maximum 
 for wrongful death should be changed, but the bill failed to be- 
 come a law. Any change in conditions as represented by this 
 sentiment is met by the facts that in addition to the money com- 
 pensation, medical aid is furnished, and the benefits of the law 
 are extended to the vast army who never before received what 
 they were entitled to. To this basis the other elements of the 
 money schedule were accommodated. 
 
30 
 
 [43 
 
 Factors in the Schedule. 
 
 The most important factors in the money schedule are the 
 percentage of wages paid, the maximum and minimum payments, 
 the length of the period for which compensation is paid and the 
 length of the waiting period. If the above basis is adhered to, 
 the gross amount payable under the act for all accidents will re- 
 main substantially the same, and changes in one or the other of 
 these factors will necessitate changes in all the others. As be- 
 tween these factors the problem is largely one of having the total 
 benefits do the greatest good to the greatest number of injured 
 employees and their dependents, and of distributing the cost 
 more equitably as between employers. To accomplish this 
 general result it must be borne in mind that the disabiUties 
 which are of the longest duration or are serious and permanent 
 in character, are the ones which cause the greatest hardships and 
 which need compensation the most. 
 
 Percentage of Wages Paid. 
 
 The most important factors in determining the percentage 
 of wages to be paid are maUngering, the relative duration of 
 temporary disabilities, the relative proportion of permanent 
 temporary disabilities and the economic conditions of living. 
 Were the injured employee paid his full wages during the period 
 allowed for disability there would be no incentive for him to 
 recover and return to work, and great danger of his regarding 
 himself as a pensioner on industry. Studies of the operation of 
 other laws show that this problem of malingering is a serious one. 
 The theory of the proposed law is that payment of 66 2-3 per 
 cent of the wage loss will safeguard against malingering. Under 
 modern economic conditions of living it would work a great 
 hardship on an injured workman and his dependents, with 
 the added hardships entailed by the injury, suddenly to cut the 
 family income to 50 per cent of the wages of the injured bread 
 winner. Under these circumstances to pay him less than 66 2-3 
 per cent would be unfair and work an unnecessary hardship, 
 to pay him more would be unwise. As between those disabled 
 for a short time and those disabled for a longer time, a 50 per 
 cent basis would be correspondingly unfair for the reason that the 
 vast majority of disabilities last but a short time, and to take 
 from these as a class, and give to the others as a class, is unjust 
 in view of the two weeks' waiting period, the length of the period 
 
43] 31 
 
 for which compensation is paid and other factors which take from 
 the minor injuries and give to the serious injuries. The Massa- 
 chusetts report (p. 8) 'shows that of the total number of non- 
 fatal accidents the duration of the disability is 76 per cent 
 was two weeks or less, in 12 per cent between two and four 
 weeks, in 7 per cent between four and eight weeks, in 3 per cent 
 between eight and thirteen weeks, in 1 per cent between thirteen 
 weeks and six months, and in 3 per cent over six months. While 
 m9st of the schedules pay 50 per cent of the wages. States in 
 which the subject has been given the most careful study, such as 
 California, Massachusetts, Nevada, New York, Ohio, Texas 
 and Wisconsin, pay from 60 per cent to 66 2-3 per cent and the 
 trend of legislation and the most enlightened sentiment is in 
 favor of a 66 2-3 per cent basis. (See pp. 39-40 Report of 
 American Federation of Labor and the National Civic Federa- 
 tion.) 
 
 Maximum and Minimum Payments. 
 
 The amount of the maximum and minimum payments is 
 largely a matter of policy to be determined according to economic 
 conditions. The minimum payment for total disability is fixed 
 at $6.00 per week (or the actual wage if less than $6.00 per week) 
 on the basis of a minimum wage of $9.00 per week, or $1.50 per 
 day, because it is believed that $6.00 per week is the minimum 
 amount necessary for existence under economic conditions in 
 Missouri. The maximum of $15.00 per week is based upon an 
 annual wage of $1,170.00, which is about the average yearly earn- 
 ings of skilled labor in this State, and which divided by fifty-two 
 gives an average weekly wage of $22.50 for the whole year. The 
 usual minima and maxima are $5.00 and $10.00 in States have 
 a 50 per cent schedule, which means that they are based on wages 
 of $10.00 and $20.00 per week respectively. Some States having 
 a 66 2-3 per cent basis have a maximum of $15.00, others $12.00 
 and some $10.00, but to make the percentage 66 2-3 and the 
 maximum only $10.00 or $12.00 excludes from the benefits of 
 the percentage all workmen making over $15.00 or $18.00 per 
 week and discriminates against them by really reducing the per- 
 centage proportionate to the increase in their wages above these 
 figures. Missouri has quite a number of employees who are 
 making an average of over $15.00 per week for the whole year, and 
 to be fair to them the maximum wage is fixed at $22.50 for the 
 whole year. The main reason for fixing a maximum is to exclude 
 
32 [43 
 
 all high-priced salaried men and make the law applicable only 
 to workmen. 
 
 Length of the Compensation Period. 
 
 The length of the period for which compensation for per- 
 manent disability shall be pajd is the subject of quite a contro- 
 versy, but the determining factor should be the period which will 
 most nearly adjust the schedule with existing conditions as 
 above explained. Under the New York law, such compensation 
 is payable on the same percentage until the death of the injured 
 employee, and it has been estimated that installments aggre- 
 gating as high as $50,000.00 -may be paid for one injury. In 
 California, for total permanent disability, compensation is payable 
 until death on a 40 per cent basis, and it has been estimated that 
 installments aggregating as high as $25,000.00 may be paid for 
 one injury. The effect of such a law on insurance rates is ap- 
 parent, but the New York and California laws are both com- 
 pulsory. Such a provision in an elective law would make it a 
 complete failure. Under the various elective laws, the period 
 varies from about 300 weeks in such States as Minnesota, Ne- 
 braska and New Hampshire, to about 500 weeks in such States 
 as Connecticut, Massachusetts and Rhode Island. For total 
 disability, Wisconsin pays for about fifteen years, but not to ex- 
 ceed six years' wages, and that may be one of the reasons why 
 the Wisconsin rates are 16 2-3 per cent higher than the Massa- 
 chusetts rates. In such States as Iowa, Kansas, Nevada, New 
 Jersey and Texas, the period is about 400 weeks. In the pro- 
 posed law the period was fixed at 400 weeks to adjust the sched- 
 ule to Missouri conditions. As a matter of theoretical justice, 
 some compensation for permanent total disability should be 
 paid until death, but such a change in the law should come grad- 
 ually and as the limiting conditions improve, as they un- 
 doubtedly will. The statistics collected by the industrial com- 
 mission will show just what changes are justifiable in this respect. 
 
 Length of the Waiting Period. 
 
 Both from the standpoint of malingering and to avoid the 
 expense of the vast number of small accidents, all of the 
 laws, except two, provide a waiting period of from one to two 
 weeks, during which no compensation is paid. And such a 
 provision is not unjust, because the hardships imposed by such 
 injuries are slight, and the damages are so small that it would not 
 
43] 33 
 
 be worth while to sue for them. The chief controversy is over 
 the question as to whether the- waiting period should be one or 
 two weeks. 
 
 If the schedule is properly adjusted with prevailing condi- 
 tions, this controversy is largely one between employees. This 
 period is two weeks under by far the larger proportion of the laws. 
 In Nevada, where it was originally 10 days, the law was amended 
 so as to make it two weeks, and in California it was changed from 
 one to two weeks. (Report of Commission of the American 
 Federation of Labor and the National Civic Federation, pp. 
 37-38.) According to the Massachusetts report (pp. 8, 9), in 
 76 per cent of the accidents the disability lasted less than two 
 weeks. According to the Statistical Bulletin of the California 
 board (p. 6), the disability lasted less than one week in 11,634 
 accidents, or about 48 per cent out of 24,127. Assuming that 
 5 per cent of the Massachusetts disabilities lasted between four 
 and six weeks, makes 93 per cent of all injuries of which the dis- 
 ability lasted less than six weeks (which is the period after which 
 the first two weeks are allowed under the proposed law). Sub- 
 tracting the 48 per cent gives 45 per cent of the cases which 
 lose the second week. To pay these 45 per cent compensation 
 for the second week would add about $165,000 to the benefits 
 payable under the law and increase the cost to employer about 
 12 per cent. To readjust the schedule, this 12 per cent would 
 have to be taken off of either the percentage, reducing it ap- 
 proximately from 66 2-3 per cent to 54 2-3 per cent, or the maxi- 
 mum and minimum payments or the length of the compensation 
 period, reducing it from 400 weeks to approximately 320 weeks, 
 or distributed between all these factors. If the period is changed 
 from two to one week without paying for the first week in any 
 case the increased cost will be about 5 per cent. Under these 
 circumstances it is better to fix the waiting period at two weeks 
 and allow the benefits to be paid to the serious injuries, and as 
 conditions change, change the law under the guidance of the 
 statistics collected by the industrial commission. 
 
 The Death Penalty. 
 
 The reasons for fixing the death penalty at a minimum of 
 $1000.00 in all cases, were to furnish an inducement to em- 
 ployers to make their plants safe, to prevent discrimination 
 against married men and to afford revenue to pay the expenses of 
 enforcing the act. The minimum cost of one death would pay 
 
 43—3 
 
34 [43 
 
 the expense of enough safety appliances to make the ordinary 
 plant safe and the penalty provision is expected to accomplish 
 this result. In those States where no compensation except 
 burial expenses is paid for a death without dependents; notably. 
 New Jersey, it was found that employers were discriminating 
 against married men and employing as many single men and men 
 without dependents as possible. There will be a motive for this 
 discrimination to the extent that the compensation payable in 
 cases where there are total dependents differs from that where 
 there are no dependents, and $1,000.00 and burial expenses was 
 selected as the measure of this difference. Besides the policy of 
 our law, as expressed in Section 5425 of the Revised Statutes of 
 Missouri of 1909, is that the minimum amount recoverable for 
 wrongful death should be $2000.00. Instead of allowing this 
 money to fall into the hands of an administrator, appointed for 
 the purpose of recovering it, the proposed law provides that it 
 shall be paid into the treasury of the state for the expenses of the 
 industrial commission. Assuming that twenty-five deaths are 
 of employees wholly without dependents and in twenty-five 
 cases the compensation payable to partial dependents averaged 
 only $500.00, gives $37,500.00 a year as the probable revenue 
 under this section, all of which goes to prevent accidents and 
 enforce the law. 
 
 PERMANENT DISABILITIES. 
 
 Too much cannot be said of the injustices of our present 
 system of trial by jury. It is fair to neither party and in per- 
 sonal.injury cases has degenerated into a play in which both sides 
 attempt to appeal to the sentiment and prejudices of the jury. 
 The amount of the verdict is influenced, not by the real facts and 
 merits of the case, but by the age, sex and appearance of the 
 parties, whether the defendant is a corporation, rich or poor, the 
 skill of counsel and expert witnesses, and many other immaterial 
 considerations, and cases are not unknown where the liability 
 was determined by the cast of a die and the amount of the verdict 
 fixed by dividing by twelve the amount insisted upon by each 
 juror. For substantially the same injury and conditions, ver- 
 dicts differ widely. The definite schedules fixed by compensation 
 laws leave no room for such injustices. Of such schedules, for 
 permanent disabilities, there are three general classes. The 
 Wisconsin plan is to have the law provide the number of weeks 
 for which a fixed percentage of the wages shall be paid for sped- 
 
43] 35 
 
 fied injuries. The defects of this plan are that it is based on 
 wages alone and that it is impossible to specify all injuries and 
 for injuries not specified there is either no compensation payable 
 or the employer and employee are left to approximate from the 
 specified injuries the relative amount which should be paid for 
 an injury not specified. This is productive of many disputes and 
 leads to many unnecessary hearings. The Massachusetts plan is 
 to wait until the injured employee returns to work and then pay 
 him a percentage of his loss in wages. The defects of this plan 
 are that it is contingent upon the ability of the employee to se- 
 cure other employment, and of two employes earning the same 
 wage and injured in the same manner, one might secure other 
 employment paying more than that secured by the other. In 
 its report (pp. 34-38) the Massachusetts Board discusses the 
 defects of this plan, and gives its judgment that the most scien- 
 tific plan is that of the California law, which is the plan adopted 
 in the law proposed for Missouri. In short, this plan is to pay 
 compensation for pernianent disabilities on the basis of percent- 
 age of disability, taking into account the injury or disfigurement, 
 the occupation of the injured employee, his age and the various 
 other elements which enter into the disability. It is based upon 
 the hypothesis that the same injury disables in a different de- 
 gree for men of different ages and in different occupations, and 
 that different injuries to the same man disable him to a different 
 degree, and that all of these differences can be expressed in def- 
 inite percentages for each injury at each occupation, by 
 scientific study and practical investigation, the duty to make 
 which is imposed on the industrial commission. After making a 
 very thorough study of conditions in that State the California 
 Commission has prepared and published a schedule from which 
 may be determined the percentage of disability for almost any 
 injury to a person of any age in any occupation. In the appendix 
 will be found an illustrative table showing the amounts payable 
 under the. Missouri law for certain injuries, to persons of certain 
 ages, in certain occupations, at certain wages, on the basis of the 
 California percentages of disability. Other works on the same 
 subject are referred to on pages 38-47 of the United States 
 Senate Document No. 336 reprinted as United States Bureau of 
 Labor Statistics Bulletin No. 126. One of the duties of the in- 
 dustrial commission is to investigate and comjJile such a schedule 
 fixing percentages of disability under Missouri conditions. 
 
36 [43 
 
 OCCUPATIONAL DISEASES. 
 
 There is considerable conflict in the authorities over the 
 question of whether occupational diseases are covered by work- 
 men's compensation laws. The English courts have held that 
 while an occupational disease is a personal injury it is not an 
 "accident," and following this lead the decisions in this country 
 have turned on the question of whether it was the intention of 
 the law to cover only industrial "accidents" or all personal; 
 injuries. In Columbia Paper Stock Co. vs. Fidelity & Casualty, 
 Co., 104 Mo. App. 157, it was held that an employer was en- 
 titled to recover on a policy covering damages for bodily injuries 
 accidentally suffered by employees for a judgment obtained 
 against him by an employee who had become infected with 
 Bright's disease from handling rags and wall paper co ntaining 
 arsenic. To the same effect is Hood & Sons vs. Maryland Casual- 
 ty Co., 206 Mass. 223, where the employee had contracted 
 glanders in cleaning an infected stable. The next Massachu- 
 setts case was In re Hurle, 104 N. E. 336, holding blindness 
 caused by inhalation of poisonous gases a personal injury under 
 their compensation law and referring to some of the occupational 
 diseases covered by the English decisions. The last Massa- 
 chusetts decision is the recent case of Johnson vs. London 
 Guarantee & Accident Co., 104 N. E. 735, holding that lead 
 poisoning is a "personal injury" within the meaning of their com- 
 pensation law, and ditinguishing the decision from the English 
 cases on the ground that the Massachusetts act omit the words 
 "by accident" found in the English act. After this in the case 
 of Adams vs. Acme White Lead & Color Works, 148 N.W. 485, 
 a similar case and injury, the Supreme Court of Michigan held 
 that as the word "accident" appeared in the title, an occupational 
 disease was not a personal injury within the meaning of the com- 
 pensation law. To avoid a law suit on this point the commisison 
 specifically excluded occupational diseases in Section 4 of the 
 Missouri bill. So far as the commission as able to determine, 
 the subject of occupational diseases is a comparatively new 
 and undeveloped subject in jurisprudence, and the decisions cov- 
 ering the subject are few and very much in conflict. Other than 
 on the distinctioij between the words "accident" and personal 
 injury, the decisions under workmen's compensation acts fur- 
 nish but little from which constructive suggestions may be 
 obtained as to the proper manner in which occupational diseases 
 
43] 37 
 
 should be included in a workmen's compensation act. Medical 
 experts say that the same is true in the field of medicine. For 
 these and the reasons hereafter given, the commission felt that 
 to complicate the new and developing workmen's compensation 
 law with the newer and undeveloped subject of occupational 
 diseases would be exceedingly unwise at this time and it accord- 
 ingly imposed upon the industrial commission the duty of mak- 
 ing a thorough and scientific investigation of the subject and 
 recommending to the next General Assembly the proper changes 
 in the law. 
 
 The information which the commission has been able to 
 obtain on this subject has been so meagre that it is with much 
 hesitation that it makes the following suggestion as to the 
 lines along which future inquiry should be directed. 
 
 The British compensation act of 1897 did not include occu- 
 pational diseases, but in the act of 1906, six well-recognized 
 occupational diseases were cautiously included and the power 
 was given to the Home Secretary to add to this number by- 
 special orders. Without additional legislation about eighteen 
 diseases were subsequently added to the original six. Later a 
 Departmental Committee, appointed for the purpose, made an 
 investigation and added sixteen more diseases to the list, and 
 two more were added by the order of December 2, 1908. The 
 report of this Departmental Committee has been characterized 
 as the most notable contribution in the English language to the 
 subject of occupational diseases. The English theory is that the 
 Legislature should specify the occupational diseases which 
 have been universally recognized as such and vest in an ad- 
 ministrative body such as the industrial commission the power 
 to add to the list by rule after a thorough and scientific investi- 
 gation. This plan has the advantages of eliminating doubt and 
 litigation, and of intelligent and scientific definition. Sir 
 Thomas Oliver has been quoted as saying that this system is 
 not satisfactory, perhaps for the reason that it may be impossible 
 to enumerate in this manner all possible diseases, and injustice 
 may be done in casual cases such as the glanders case (Hood 
 & Sons vs. Maryland Casualty Co., 206 Mass. 223). On the 
 other hand, to say that the term "personal injury" shall include 
 any disease arising out of any contracted in the course of the 
 employment, without specifying the diseases or the occupations 
 would practically mean that there must be a law suit to establish 
 each occupational disease as such and the question would be de- 
 
38 [43 
 
 cided without careful and scientific study and investigation. by a 
 comparatively ignorant Court. Such a scheme is prolific in 
 opportunities for fraud and something akin to malingering. If 
 it is adopted, law suits should be eliminated by enumerating as 
 many occupational diseases as possible and imposing some re- 
 strictions which would tend to prevent fraud and malingering. 
 
 More difficult and undeveloped are the questions arising 
 out of the inherent differences between occupational diseases, 
 their symptoms and treatment, and other personal injuries, 
 which give rise to the necessity for special and different substan- 
 tive and administrative provisions and coiripensation. With 
 the exception of Louisiana, there is not a compensation act in this 
 country which specifically includes, or was intended to include, 
 the subject of occupational diseases, and as a consequence none 
 of the acts contain any special provisions in regard to such dis- 
 eases. The only State where such diseases have been held to be 
 covered by the act is Massachusetts, and there is no more con- 
 vincing evidence of an intention not to include them than is 
 found in Section 5 of Part II of their original law providing Ha- 
 bility for but two weeks of medical aid. The Johnson case was 
 decided last March and the commission believes that it will be 
 advisable to wait until the "defects of the Massachusetts law in 
 this respect have been developed by her experience. A similar ex- 
 perience can be expected to develop in Louisiana. In the 
 Johnson case the employer was held liable for the effects of lead 
 poison absorbed during a period of twenty years, though the act 
 had been in force but eight months. Under the reasoning of this 
 case a man might absorb lead or other poison for years in the 
 employ of one employer and after working a short time for 
 another might succumb to its effects, and the last employer be 
 held liable to pay all of the compensation. To the commission 
 this seems unjust and there should be some provision for making 
 both employers pay their proportionate part. This case also 
 suggests the necessity of giving the employer the right to insist 
 upon a medical examination of every employee before entering 
 his employ, and at times during the employment, and to require 
 the employee to submit to reasonable medical treatment, none 
 of which are provided in the proposed Missouri or any other law. 
 Cases of infection, both from the employment, his own person 
 and fellow, employees seem to require special provisions. A 
 common case of infection from his own person is found in McCoy 
 vs. Michigan Screw Co. (Mich.), 147 N. W. 572. An employment 
 
43} 39 
 
 may not be conducive to consumption yet an employee might 
 contract the disease from his fellow employee, and the employer 
 be held liable. Diseases of women, like cases of hernia, also 
 present peculiar difficulties. Special provisions should be made 
 for cases where the employee, though totally incapacitated from 
 working at his present employment, might be able to work at 
 other employments. Some time should be set after which it shall 
 be presumed that the disease did not cause death, frequent 
 reports should be made to the commission as to the progress of 
 the case, and more complete supervision should be given to the 
 commission. Special medical aid should be provided, and 
 perhaps provisions for traveling expenses and treatment outside 
 the State, and for the embalming and transportation of the body 
 in case" of death away from home. Other special provisions will 
 be found in paragraph 8 of the British act of 1906. These are 
 but a few of the respects which suggest themselves wherein by 
 ■reason of their difference from other personal injuries occupational 
 diseases require special and different provisions in the law. The 
 commission is convinced that a thorough and careful study will 
 reveal more of such differences, and that it will be unwise to 
 include occupational diseases in the bill until such matters are 
 better understood. 
 
 INSURANCE. 
 
 As the compensation payments are extended over a period 
 of almost eight years, during' which the financial condition of the 
 employer might change, it is only fair to guarantee to the em- 
 ployee the payment of his compensation by requiring the employ- 
 er to insure against his liability therefor in some method of in- 
 surance authorized under the general laws of the State. The 
 compensation act does not give the industrial commission the 
 power to authorize any particular plan of insurance, but to pro- 
 tect the employer against unfair and unreasonable rates, and the 
 employee against inadequate rates, insolvent carrier and insuf- 
 ficient protection, the commission is vested with power to regu- 
 late rates, disapprove of carriers, approve of policies and pre- 
 scribe what portion of the liability must be covered. Unfair 
 rates might destroy the balance between the schedule of compen- 
 sation and existing conditions and make the act a failure. In- 
 adequate rates might make the carriers insolvent. Improper 
 business methods and insufficient policies might defeat the pay- 
 ment of a just liability. 
 
40 
 
 STATE INSURANCE. 
 
 [43 
 
 In several of the States there has been quite a controversy 
 over the question of State insurance, either monopolistic or com- 
 petitive, neither of which are provided in the proposed laws for 
 the following reasons: Monopolistic State insurance depends 
 for its success upon a compulsory law under which all other kinds 
 of insurance are prohibited, and the proposed law is elective. 
 Under its monopoly the State is not in competition with other 
 insurers and may perform the proper functions and give the 
 service of an insurer to any degree it may see fit, and no one can 
 complain. The first function of an insurer is to issue a policy 
 which adequately covers the risk and risks incidental thereto. 
 All State schemes exclude liability to the general public, which 
 can be and is included in a compensation policy at a much re- 
 duced cost.- In Ohio the State fund does not cover liability for 
 the violation of a safety law, and the employer is not permitted 
 to insure against such a liability. As the safety laws are so 
 drawn that almost every accident can be traced to such a vio- 
 lation, the employer of Ohio is only partially covered. The 
 next function of an insurer is to inspect the risk, make recom- 
 mendations and rate the risk according to its relative hazard. 
 Neither of the monopolistic States have any provision, other 
 than the general factory inspection laws for the inspection of 
 risks, the recommendation of safeguards and the rating of the 
 risk according to its relative hazard before the policy is written. 
 To furnish this service would add quite a large item to the cost. 
 The next function of an insurer is after the accident to take hold 
 of the case, see that proper medical aid is furnished at once, in- 
 vestigate the facts, furnish legal advice, determine the liability, 
 make the proper reports, draw all the papers and furnish the 
 employer with a complete report of what has been done. The 
 monopolistic schemes are furnishing this service in a very im- 
 perfect manner and are throwing the larger proportion of its 
 burden upon the shoulders of the employer. To furnish this 
 service would add a very large item to the cost. For example, 
 the Washington fund pays the claim upon the report of the em- 
 ployer, the doctor and the statement of the injured workman. 
 At the time the Senate Commission was in Washington the doc- 
 tors of the State were complaining that the burden of investiga- 
 ting the accidents, making out the papers and determining the 
 amount of compensation was imppsed upon them, and were de- 
 
43] / 41 
 
 manding an extra fee of $5.00 for this service. This small item 
 would amount to $250,000.00 a year on 50,000 accidents. Very 
 alluring statements have been issued by the Washington and 
 Ohio boards showing how much lower their rates were than those 
 of other States, but when it is remembered that the Washington 
 schedule is based on 40 per cent of the wages, that the Ohio 
 fund only partly covers the risk, and that neither of these States 
 properly perform all the functions of an insurer, the difference is 
 easily accounted for. The New York Commission investigated 
 this subject and found that if all the functions were properly 
 performed there would be a difference in rates of but 8.39 per 
 cent in favor of monopolistic State insurance. This difference is 
 not sufficient to justify the enormous machinery necessary to 
 furnish the service, the political abuses which might arise and 
 the departure from our fundamental principles of government. 
 Considerable complaint was made that under such a scheme, 
 the same hand which collected the fund, paid it out, and that 
 there was an ever-present incentive to oppose the enlargement 
 of the benefits under the law, and to keep down the amounts 
 which were collected and disbursed. Under such a plan the 
 employee derives no benefit and there is every reason why he 
 should oppose it. Thebenefit, if any to the employer, arises out of 
 the insufficient coverage, the insufficient service, and in some 
 States the unjust and arbitrary discrimination in rates in 
 favor of the extra hazardous industries. There was also con- 
 siderable complaint that such a scheme tended to widen, the 
 breach between employer and employee, made the employer feel 
 that the State had stepped in between him and his employee, 
 and made the employee feel that the State, and not his employer, 
 was paying for the accident. 
 
 Under the competitive plan it was found that either a very 
 small percentage of the employers insured with the State or the 
 complaint was made that the State was getting all the bad risks 
 and was not furnishing adequate service or coverage. The real 
 reason behind both plans was to protect the employer against 
 excessive rates. The plan of giving the industrial commission 
 the power to make insurance rates fair and reasonable as well 
 as adequate seems never to have been tried, and the commission 
 feels that until this plan is tried, and fails, resort should notbe 
 had to either plan of State insurance. 
 
42 [43 
 
 THE MUTUAL ACT. 
 
 Section 6950 of the Revised Statutes of Missouri of 1909 
 provides that accident insurance on the assessment plan shall 
 only be carried on by corporations. The third subdivision of 
 Section 6995 of the Revised Statutes of Missouri of 1909, as 
 re-enacted by the laws of 1911, p. 273, provides for the organiza- 
 tion of corporations (third) to make insurance against personal 
 injury, disablement or death resulting from general accident and 
 (fourth) to do any and all other kinds of legitimate insurance 
 business, but no company can be organized under more than one 
 plan. Section 6998 provides that business under the fourth 
 class can be done either on the stock or mutual plan, but business 
 under the third class can be done only on the stock plan, and the 
 section seems to contemplate that the mutual plan can be 
 carried on by corporations. There seem to be. no statutes 
 providing in any way for insurance against liability for industrial 
 accidents on the mutual or assessment plan. In view of this 
 doubt the commission deemed it advisable to recommend a 
 mutual law. This bill provides for what is known as a mutual 
 company on the reserve' and advance premium plan and con- 
 tains many sound provisions which are new. Practically the 
 only differences between such a mutual and a stock company 
 are that its affairs are governed by its policy-holders who receive 
 all the profits and saving in expenses, and that in place of capital 
 stock it has the contingent liability of its policy-holders. It 
 differs from the old line of assessment mutuals by requir- 
 ing an adequate cash premium to be paid in advance and ade- 
 quate reserves to be maintained, after which any saving or 
 profits are refunded to the policy-holders. So far as the com- 
 mission has been able to learn the bill represents the best of what 
 experience has shown to be sound for mutual insurance. 
 
 THE INDUSTRIAL COMMISSION ACT. 
 
 In addition to the reasons given above there are several 
 other reasons for the establishment of the industrial commission. 
 With the enactment of a workmen's commpensation law comes 
 a duty to provide the machinery for reducing as far as possible 
 the number of industrial accidents and correspondingly re- 
 ducing their hardships to employees and their cost to employers. 
 For some time there has been the feeling that in equipping their 
 
43] 43 
 
 plants^ employers have been paying too little attention to acci- 
 dent prevention, and it is only within the last few years that 
 special study and inventive genius have been devoted to this field. 
 Under the slogan of "safety first" a wave of information, publicity 
 and interest is sweeping over the country and if turned into 
 proper and permanent channels can be made to accomplish its 
 purpose. The Legislature does not have the time to make a 
 special sudy of such regulations, and to leave the construction 
 of a general law to the courts and juries would result in confusion. 
 The body fitted to prescribe safety rules and regulations is the 
 body which through factory inspection and daily hearings of 
 accident cases would know from actual experience what is rea- 
 sonable and proper. 
 
 Having reached the conclusion to vest such powers in the 
 commission, it becomes a problem what to do with the existing 
 State officers whose functions, already duplicated and con- 
 flicting, are similar to a:nd necessarily conflict with those of 
 the industrial commission. Both the factory inspector and the 
 Commissioner ol the Bureau of Labor Statistics are required to 
 collect information as to industrial accidents. The factory in- 
 spector and the hotel inspector are both required to inspect 
 hotels. The functions of the hotel inspector, factory inspector 
 commissioner of the bureau of. labor statistics, chief mine in- 
 spector and the board of mediation and arbitration are all of 
 the same kind as those of the industrial commission. Accord- 
 ingly, following the lead of Wisconsin where a similar problem 
 was presented, to avoid a useless and expensive duplication of 
 functions, for the sake of economy, uniformity and harmony, 
 these five offices were abolished and their duties transferred to 
 the industrial commission. 
 
 The act embodies the best features of the Wisconsin, Ohio 
 and California laws and the law proposed for Maryland. In 
 form it is patterned after the Missouri Public Service Commission 
 Act, and the procedure and language of that act has been fol- 
 lowed as closely as possible. In the appendix will be found a 
 speech by the Hon. J. D. Beck of the Wisconsin Industrial Com- 
 mission, made before the 1914 Convention of the Missouri 
 State Federation of Labor, which illustrates the way they operate 
 under their law. 
 
44 [43 
 
 THE TAX ACT. 
 
 The tax act follows substantially the language of sections 
 7099-7108 of the Revised Statutes of 1909 as amended by the 
 laws of 1911, page 283, imposing a tax of 2 per cent on the pre- 
 miums of foreign insurance companies, except mainly that the 
 rate is 5 per cent, the tax covers only premiums on employers' 
 liability and workmen's compensation insurance, allows credit 
 in all cases for cancelled or return premiums and pre- 
 miums on reinsurance, is imposed on both foreign and domestic 
 companies, mutuals, reciprocals and all other insurance carriers, 
 and all of it is paid into the treasury of the State for the support 
 of the industrial commission. In the present condition of the 
 State's revenue it is doubtful if the entire fund for the support 
 of the commission could be provided without using funds nec- 
 essary for other purposes. As all of the money raised by the 
 tax will be used for the benefit of the persons paying it, and in 
 the degree of its amount, and the wisdom with which it is 
 expended, will tend to reduce to them the cost of industrial 
 accidents, the fairness and justness of the tax is at once apparent. 
 Assuming that all employers covered by the act insure against 
 their entire liability, the net premiums will amount to about 
 $2,750,000.00. Allowing $350,1)00.00 for such items as em- 
 ployers carrying the whole or part of their own risk, reductions 
 in the proportion of the liability insured allowed by the commis- 
 sion, and reinsurance, makes a probable sum of $2,400,000.00 on 
 which the tax will be assessed. This will make the tax yield a 
 revenue of only about $120,000.00 a year. As the first payments 
 do not become overdue until April, 1916, the General Assembly 
 will have to make an appropriation out of the general revenue 
 fund sufficient to pay the expenses of the commission until this 
 time, to be retransferred as the tax payments are made. 
 
 ESTIMATED EXPENSES OF THE INDUSTRIAL 
 COMMISSION. 
 
 As represented by the appropriations and the expenditures 
 out of the funds which are not paid into the State treasury, the 
 expenses of the. abolished departments for two years are as fol- 
 lows: 
 
43] 
 
 45 
 
 Page Laws 
 
 
 of 1913 
 
 Sec. 
 
 21 
 
 51a 
 
 14 
 
 27b 
 
 43 
 
 10 
 
 27 
 
 65 
 
 28 
 
 70 
 
 43 
 
 11 
 
 14 
 
 27a 
 
 14 
 
 27aa 
 
 Department. 
 
 Board of Mediation and Arbitration 
 
 Bureau of Labor Statistics 
 
 Bureau of Labor Statistics 
 
 Bureau of Labor, Statistics (Labor agency licenses) , about 
 
 Factory Inspection 
 
 Hotel Inspection 
 
 Mine Inspection 
 
 Mine Inspection 
 
 Mine Inspection 
 
 Total : 
 
 Amount. 
 
 82,500.00 
 45,000.00 
 4,000.00 
 6,000.00 
 35,000.00 
 28,700 . 00 
 21,600,00 
 17,600.00 
 7,200.00 
 
 8167,600.00 
 
 The probable effect of the acts and normal increases will be 
 to increase the expenses of the functions of the factory inspec- 
 tion department by about 115,000.00, and those of the other 
 departments by about $8000.00, so that the total biennial ex- 
 pense of performing these functions under the new acts will be 
 about $190,000.00. 
 
 The biennial cost of administering the functions under the 
 workmen's compensation act will probably be about $25,200.00 
 more than the cost of administering the Massachusetts law, the 
 additional amount being allowed for the attorney ($8,000.00), 
 the regulation of insurance rates, the study of occupational 
 diseases, the fixing of percentages of disability, the making of 
 safety rules and other enlargement of powers (about $8000.00), 
 increased traveling expenses, because the Massachusetts indus- 
 tries are all within short distances of Boston ($2000.00), office 
 furniture ($6000.00), and miscellaneous items ($1200.00). As 
 the last Massachusetts annual appropriation was $87,400.00 
 this would make the biennial cost of this function about $200,000. 
 and the biennial expenses of the commission about $390,000.00 or 
 $195,000.00 per year. 
 
 To pay these expenses there will be available the following 
 biennial revenue: 
 
 Approximate Labor Agency Licenses 
 
 Approximate Hotel Inspection Fees 
 
 Approximate Death Penalties under Compensation Act 
 
 Approximate Premium Tax 
 
 Approximate Fees 
 
 $7,000.00 
 
 30,000.00 
 
 75,000.00 
 
 240,000.00 
 
 8,000.00 
 
 S360,000.00 
 
46 [43 
 
 It is to be noted that the amount derived from death pen- 
 alties is entirely contingent and may be but little, and that the 
 amount to be derived from the premium tax for the first year 
 will also be uncertain, and neither of these amounts will be 
 available for almost a year. It must also be remembered that 
 for the compensation function only about two-thirds the amount 
 for the year 1915 will be necessary. It is therefore recommended 
 that the Legislature appropriate from the industrial commission 
 fund the sum of $245,000.00 for the payment of the biennial 
 expenses of the commission and the abolished offices and that it 
 appropriate from the general revenue fund for the same purpose 
 the sum of 1120,400.00, which is the present amount paid toward 
 said functions out of the general revenue fund of the State. 
 
 In conclusion, the members of the commission express their 
 sincere thanks and appreciation of the assistance and hospitality 
 which have been given them by their friends in this and other 
 States. 
 
 Respectfully submitted, 
 
 BEN L. WHITE, Chairman, 
 
 Federal Building, St. Louis, Mo. 
 
 WALTER C. GOODSON, Secretary, Macon, Mo. 
 
 WILLIAM G. BUSBY, Jefferson City, Mo. 
 
 ROBERT S. McCLINTIC, Monroe City, Mo. 
 
 ALROY S. PHILLIPS, 
 
 1605 Pierce Building, St. Louis, Mo. 
 December 1, 1914. 
 
43] 47 
 
 AN ACT 
 
 To provide an elective system of workmen's compensation, 
 prescribing the manner of election and the effect thereof, de- 
 fining the rights and liabilities of employers and employees elect- 
 ing or not electing to come under the act, and of third persons 
 in connection therewith, and of the employer's insurer, pre- 
 scribing the powers and duties of the industrial commission and 
 courts in connection therewith, regulating the charges for medical 
 aid, burial expenses and' attorneys' fees, prescribing the rights, 
 duties and liabilities of the employer's insurer and regulating 
 insurance rates, reserves and policies, regulating the rights of 
 dependents, making minors of sixteen years and over of full age 
 for the purposes of the act, providing for the giving and serving 
 of notice thereunder, prescribing the manner of procedure and 
 the limitations on proceedings thereunder, providing the means 
 by which the wards of the commission may be enforced and the 
 manner arid extent to which the same may be reviewed by the 
 courts, providing punishments for violations thereof, repealing 
 all acts and parts of acts inconsistent therewith, and declaring 
 that the same is necessary for the immediate preservation of the 
 public peace, health and safety, with an emergency clause. 
 
 Be it enacted by the General Assembly of the State of Missouri, 
 asfollows: 
 
 Section 1 (A). Where, before the injury, an employer, 
 other than of farm laborers, domestic servants, or of three or less 
 employees, has elected not to furnish compensation as provided 
 in this act, or where before the injury both employer and em- 
 ployee have elected to furnish or accept compensation as pro- 
 vided in this act, in any action against an employer to recover 
 damages or compensation for personal injury received in this 
 state by his employee arising out of and in the course of his 
 'employment, or for death resulting from such injury, it shall not 
 be a defense: 
 
 (a) That the injury was caused in whole or in part by the 
 negligence of a fellow employee, or 
 
 (b) That the injured employee had assumed the risk of 
 the injury, or 
 
48 [43 
 
 (c) That the injury was caused in any degree by the 
 negligence of the injured employee, unless it be proven by the 
 defendant that the injury was caused by an act of the injured 
 employee done knowingly for the purpose of injuring himself. 
 
 Note. — This section 
 
 1. Abolishes the common law defenses 
 
 (a) Where both employer and employee have elected to come under the 
 
 act and the action is for compensation. 
 
 (b) Where the employer elects not to come under the act, except in 
 
 cases -where the employment is of farm laborers, domestic servants, 
 or of three or less employees, irrespective of how the employee has 
 elected. 
 
 2. Allows the defenses 
 
 (a) Where an employer of farm laborers, domestic servants, or of three 
 
 or less employees elects not to come under the act. 
 
 (b) Where an employee elects not to come under the act, and the 
 
 employer has elected to come under the act. 
 
 Sec. 1 (B). Where, before the jury, an employer other 
 than of farm laborers, domestic servants, or of three or less 
 employees, has elected not to furnish, and his employee has 
 elected to accept, compensation as provided in this act, in any 
 action against such employer to recover damages for a personal 
 ihjury received in this state by such employee arising out of and 
 in the course of his employment, or for death resulting from such 
 injury, it shall be presumed that the injury was due to the neg- 
 ligence of the employer unless he shall prove that the injury was 
 not due to his negligence, and in any stich action the jury shall find 
 the amount of the damages and the date of the injury, and if 
 they think fit, may allow as additional damages interest thereon 
 at the rate of 6 per cent per annum from the date of the injury 
 and reasonable attorneys' fees not exceeding 25 per cent of the 
 damages first found. 
 
 Sec. 2. Except where the employment is of domestic serv- 
 ants, farm laborers or of three or less employees, both employer 
 and employee shall be conclusively presumed to have elected to 
 furnish, or accept,^ compensation under and all the provisions 
 of this act, unless either shall file at any time with the industrial 
 commission a notice that he does not intend to furnish, or accept 
 compensation under the provisions of this act. When the em- 
 ployer or employee shall at any time notify the industrial com- 
 mission in writing that he desires to withdraw such notice, the 
 presumption of election shall be re-established as of the time of 
 its receipt until further notice. Where the employment is of 
 domestic servants, farm laborers, or of three or less employees, 
 the employer and employee may elect to furnish, or accept, 
 
43] 49 
 
 compensation under all the provisions of this act by filing notice 
 thereof with the industrial commission, and unless a time be 
 specified therein, such election shall not be withdrawn except 
 upon 30 days' written notice to the industrial commission. The 
 employee shall give such notice for each employer, and on re- 
 ceipt thereof the commission shall immediately notify the 
 employer. 
 
 Note. — This section 
 
 1. Makes the act elective in Its nature. 
 
 2. Except as to farm labor or domestic service and employments of three or 
 
 less employees, requires both employer and employee to give notice If 
 they do not -wish to be bound by the act. 
 
 3. Permits farm labor, domestic service and employments of three or less 
 
 employees to be included in the act if both employer and employee 
 give notice that they so desire. 
 
 4. Provides a very simple method of notice and avoids friction between em- 
 
 ployer and employee by requiring the notice to be filed with the indus- 
 trial commission only and not given to the employer or employee. 
 
 Sec. 3. The term "employer" as used in this act shall be 
 construed to include the State, and any county, municipal 
 corporation, school district, drainage district, road district or 
 any other political subdivision or corporation thereof, and any 
 election shall be made by the lawmaking or other governing 
 body thereof. Nothing contained in this act shall be con- 
 strued as amending or repealing any statute or ordinance relating 
 to associations or funds for the relief, pensioning, retirement, 
 or other benefit, of firemen and policemen, their widows, children 
 and dependents, or as in any manner interfering with such 
 associations, funds, or benefits, now or hereafter established, 
 but any fireman or policeman, their widows, children or depend- 
 ents, who shall claim compensation under this act, shall have 
 deducted therefrom any sums received from any pension or other 
 benefit fund to which the municipal corporation contributes. 
 The term "employer" shall also be construed to include any 
 person operating a railroad in this State. 
 
 Note. — This section brings under the act all of the employees of the state or 
 its subdivisions. Including police officers, firemen, and school teachers, and 
 will have much to do in settling the agitation for the relief of public employees. 
 
 Sec. 4. — "Where, at the time of the injury, both employer 
 and employee have elected to furnish, or accept, compensation 
 under the provisions of this act, for a personal injury, other than 
 an occupational disease, received in this State by an employee 
 arising out of and in the course of his employment, or for death 
 resulting from such injury, the employer shall be liable to pro- 
 vide and pay compensation under the provisions of this act 
 
 43 — i 
 
50 ■ [43 
 
 and shall be released from all other liability whatsoever except 
 for a personal act of himself or his agent done knowingly for the 
 purpose of injuring the employee. 
 
 Note. — This section 
 
 1. Requires both employer and employee to elect before the injury. 
 
 2. Where both have so elected the employer is released from all other lia- 
 
 .bility whether at common law or by statute, and only becomes liable 
 under the compensation act, and the employee and his representatives 
 lose their right to sue his employer at common law or under other statutes 
 and can only recover the compensation provided in this act, except where 
 the injury is due to an act of the employer or his agent done for the pur- 
 pose of injuring the employee. 
 
 3. Provides that where either the employer or the employee have elected 
 
 not to come under the act, the employer is not liable to pay compensation 
 under this act, but is liable at common law or under the other statutes 
 with his defenses removed or not as specified under Section 1. 
 
 4. Excludes occupational diseases. 
 
 5. Limits the territorial operation of the act to injuries received in this State. 
 
 Sec. 5. The compensation to be furnished by the em- 
 ployer shall be as provided in this act and according to the fol- 
 lowing schedule. 
 
 (1) In addition to all other compensation, such medical, 
 surgical and hospital treatment, including nursing, medicines, 
 medical and surgical supplies, crutches and apparatus as may 
 be reasonably required at the time of the injury and thereafter 
 during the disability, but not exceeding ninety days unless 
 the industrial commission shall by order made within such time 
 otherwise direct, to cure and relieve from the effects of the in- 
 jury, the same to be furnished by the employer and in case of 
 his neglect or refusal seasonably to do so the employer shall be 
 liable for the reasonable expenses incurred by or on behalf of 
 the employee in providing the same. As soon as the employer 
 knows of an injury to his employee he shall immediately furnish 
 such requirements, and upon his failure to offer to furnish the 
 same he shall be deemed to have neglected or refused to do so. 
 If it be shown to the industrial commission that the employer 
 is furnishing such requirements in such manner that there is 
 reasonable ground for believing that the life, health or recovery 
 of the employee is endangered thereby, the commission may 
 order a change in the physician, hospital or other requirement, 
 and if the employer fail promptly to comply with said order, 
 may permit the employee or some one for him to provide the 
 same at the expense of the employer under such regulations as . 
 may be provided by the commission. All fees and charges under 
 this section shall be fair and reasonable, shall be subject to regu- 
 lation by the industrial commission and shall be limited to such 
 
43] 51 
 
 charges as are fair and reasonable for similar treatment of injured 
 persons of a like standard of living. Where such requirements 
 are furnished by a public hospital or other institution, payment 
 therefor shall be made to the proper authorities. No compen- 
 sation shall be payable for the death or disability of an employee 
 if his death is caused, or if and so far as his disability is caused, 
 continued or aggravated, by an unreasonable refusal to submit to 
 any medical or surgical treatment, the risk of which is, in the 
 opinion of the commission, inconsiderable in view of the serious- 
 ness of the injury. 
 
 Note. — This section 
 
 (1) Practically makes the liability of the employer for medical aid unlimited, 
 
 and in case he fails to furnish or tender the same, the employee or 
 some one for him may make the employer liable therefor. 
 
 (2) Allows medical aid in all cases and in addition to all other compensation. 
 
 (3) Allows the employer in the first instance to select the physician. 
 
 (4) • Requires the employer, to pay for hospital service rendered by a public 
 
 institution. 
 
 (5) Limits all charges for medical aid to such as are reasonable. 
 
 ; (2) Except as provided in Section 5 (1), no compensation 
 shall be paid for the first two weeks or less of disability unless 
 the disability shall last longer than six weeks, and all compensa- 
 tion shall be payable on the regular pay day of the employer 
 commencing with the first regular pay day after two weeks after 
 the injury with interest at 6 per cent per annum on each install- 
 ment from the time it is so due until paid. 
 
 Note. — This section 
 
 (1) Establishes a waiting period of two weeks and makes the employee 
 
 bear the burden of all injuries lasting less than two weeks, but if the 
 disability lasts longer than six weeks, compensation for the first two 
 weeks must be paid. 
 
 (2) Fixes the days of payment at the regular pay day of the employer. 
 
 (3) Makes the installments fall due commencing with the first pay day two 
 
 weeks after the injury, so that the employee will receive interest from 
 these dates no matter when his compensation is awarded or adjusted. 
 " (4) ■ Fixes the rate of interest at 6 per cent. 
 
 (3) For a temporary total disability there shall be paid 
 two-thirds of the average weekly earnings of the employee, 
 but not less than |6.00 nor more than $15.00 per week unless 
 the average weekly earnings are less than $6.00, in which event 
 the actual wages shall be paid, for not exceeding 400 weeks dur- 
 ing the period of such disability. 
 
 (4) For a temporary partial disability there shall be paid 
 two-thirds of the weekly loss in earnings of the employee, but 
 not more than $15.00 per week, for not exceeding 400 weeks 
 during the period of such disability, and if the weekly loss in 
 
52 [43 
 
 earnings cannot be readily determined, such weekly loss may be 
 determined by the percentage of the disability computed ais pro- 
 vided in Section 5 (5). 
 
 (5) Permanent disability shall be determined according to 
 the percentage thereof, taking into account, among other things, 
 any previous disability, the nature of the physical injury or 
 disfigurement, the occupation of the injured employee and his 
 age at the time of the injury, and the compensation paid therefor 
 shall be two-thirds of the percentage of disability caused by the 
 injury, times the average weekly earnings of the employee com- 
 puted at not less than $9.00 nor more than 122.50 per week, for 
 not exceeding 400 weeks during the life of the employee. When- 
 ever the weekly payments under this subsection are so small 
 that the payment thereof during the full period will work a 
 hardship on the parties, or be of no substantial benefit, the 
 period may be shortened and the payments correspondingly in- 
 creased in such a manner that the same may be of substantial, 
 benefit to the injured employee. 
 
 Note. — This section is so drawn that the commission may investigate and de- 
 termine the percentage' on disability under Missouri conditions. The subject of 
 percentage of disability is a comparatively new one and is growing rapidly. The 
 only work in this country on the subject is the Schedule for Rating Permanent 
 Disabilities prepared by the California Industrial Accident Commission, which 
 will probably be used by the Missouri Commission until it prepares its own sched- 
 ules. The Senate Commission has prepared a table showing a few of the percent- 
 ages of disability under the California Schedule and the amounts payable therefor 
 under this act, which will be found in the Appendix. Other works on the same 
 subject are referred to on pages 38-47 of the United States Senate Document No. 
 336, reprinted as United States Bureau of Labor Statistics Bulletin No. L26. 
 
 (6) Compensation paid for temporary partial disability 
 shall be deducted from the compensation allowed for permanent 
 disability but compensation paid for temporary total disability 
 shall be in lieu of compensation for permanent disability for the 
 number of weeks for which such compensation for temporary 
 total disability was paid. The employer shall be entitled to 
 credit for wages paid the employee after the injury, and for 
 any sum paid to or for the employee or his dependents on account 
 of the injury except for liability under Section .5 (1). 
 
 (7) When caused by the injury the loss of both eyes or the 
 sight thereof, the loss of both hands or the use thereof, an injury 
 resulting in practically total paralysis, or an injury to the brain 
 resulting in incurable imbecility or insanity, shall be conclusively^ 
 presumed to be permanent total disabilities, and in all other 
 cases permanent total disability shall be determined in accord- 
 
43] 53 
 
 ance with the fact. Where there has been a previous disability, 
 as the loss of one eye, one hand, one foot or any other previous 
 permanent disability, the percentage of disabihty for a subse- 
 quent injury shall be determined by computing the percentage 
 of the entire disability and deducting therefrom the percentage 
 of the previous disability as it existed at the time of the subse- 
 quent injury. 
 
 (8) The death of the injured employee shall not affect 
 the liability of the employer to provide and pay compensation 
 as in this act provided, so far as such liability has accrued and 
 become payable at the date of the death, and any accrued and 
 unpaid compensation due the employee shall be paid to his 
 dependents if any, without administration, or if there be no de- 
 pendents, to the personal representative of the deceased employee 
 or other- person entitled thereto, but such death shall be demed 
 to be the termination of the disability. 
 
 (9) If the injury causes death, either with or without dis- 
 ability, there shall be paid as compensation to his dependents, 
 installments not exceeding the equivalent of two-thirds of the 
 average weekly earnings of the injured employee, but not less 
 than $6.00 nor more than $15.00 per week, for 400 weeks, less 
 the number of weeks for which any compensation for disability 
 was paid to the employee during his life, subject to the following 
 conditions. 
 
 (a) If there be total dependents the whole of such compen- 
 sation shall be payable to them as follows: 
 
 I. To the widow or widower one-third of the average 
 weekly earnings, but not less than $3.00 nor more than $7.50 
 per week during life and so long as he or she remains single 
 or unmarried, for not exc5eeding 800 weeks, and upon his or 
 her inarriage a lump sum in the commutable value of the 
 payments for the next two years. 
 
 II. To the other total dependents shall be paid share 
 and share alike one-third of the average weekly earnings, 
 but not less than $3.00 nor more than $7.50 per week, for 
 not exceeding 800 weeks, each of such dependents to receive 
 his share during life until he shall marry or attain the age of 
 18 years and be able to work, the widow or widower being 
 authorized to collect and receipt for the shares of the minor 
 children. 
 
 III. The compensation shall be payable on the regular 
 payday of the employer to the widower or widow and other 
 
54 [43 
 
 total dependents in the proportions of the earnings above 
 specified without preference or priority, until the total com- 
 pensation has been paid, but when any of the total depend- 
 ents is lacking, or his share shall no longer be payable, 
 his share or the balance thereof shall be payable to the 
 other total dependents by way of increase in the number 
 of installments but not to exceed the period during which 
 compensation is payable to such dependents. 
 
 (b) If there be partial dependents and no total dependents, 
 a part of such compensation, determined by the proportion of 
 his income contributed to all partial dependents by the de- 
 ceased employee at the time of his death, shall be payable pro- 
 portionately to each of such dependents, but when any such de- 
 pendent shall die or shall marry or attain the age of 18 years 
 and be able to work, his share shall no longer be payable. If the 
 commutable lump sum value of the compensation payable 
 under this subsection shall be less than $1,000.00, the employer 
 shall pay the difference into the State Treasury as provided in 
 Section 5 (9) (d) of this act. 
 
 (c) The following persons shall be conclusively presumed to 
 be totally dependent for support upon a deceased employee: 
 
 I. A wife upon a husband whom she has not volun- 
 tarily abandoned at the time of his death. 
 
 II. A husband mentally or physically incapacitated 
 from wage earning upon a wife whom he has not voluntarily 
 abandoned at the time of her death. 
 
 III. A natural, posthumous, or adopted orphan child 
 or children whether legitimate or illegitimate, under the age 
 of 14 years, or over that age if physically or mentally in- 
 capacitated from wage earning, upon the parent with whom 
 he is living at the time of the death of such parent. 
 
 In all other cases questions of total or partial dependancy 
 shall be determined in accordance with the facts existing at the 
 time of deatb, but no person shall be considered a dependant 
 of any deceased employee unless he be living in this state in the 
 household of such employee at the time of his death, or unless 
 such person bears to the employee the relation of husband or 
 wife, child, adopted child or step-child, father or mother, father- 
 in-law or mother-in-law, grandfather or grandmother, brother 
 or sister of the whole or half blood. 
 
43] 55 
 
 {d) If the deceased employee leaves no dependents there 
 -shall be paid direct to the persons furnishing the same the rea- 
 sonable expense of the burial of the deceased not exceeding 
 $100.00 and the reasonable expense of his last illness, the charges 
 for which shall be subject to regulation by the industrial com- 
 mission and shall be limited to such charges as prevail in the 
 same community for the last illness and burial of persons of a 
 like standard of living. In such case the employer shall also 
 pay into the treasury of the state for the expenses of the adminis- 
 tration of this act the sum of $1,000.00, less any compensation 
 paid to the injured employee during his lifetime, and if the same 
 is not paid the same shall be recovered by a suit brought by the 
 attorney for the industrial commission in the name of the State. 
 (10) The average weekly earnings shall be computed by 
 dividing by fifty-two the annual .wages computed on the fol- 
 lowing basis: 
 
 (a) If the employee is paid by the year, take his 
 yearly wages at the time of the injury. 
 
 (b) If the employee is paid by the month, multiply his 
 monthly wages at the time of the injury by the number Of 
 months customarily worked in a year at the occupation at 
 which he was working at the time of the injury by employees 
 of his grade and class of service. 
 
 (c) If the employee is paid by the week, multiply 
 his weekly wages at the time of the injury by the number of 
 weeks customarily worked in a year at the occupation at 
 which he was working at the time of the injury by employees 
 of his grade and class of service. 
 
 (d) If the employee is paid by the day, multiply his 
 daily wages at the time of the injury by the number of days 
 customarily worked in a year at the occupation at which 
 he was working at the time of the injury by employees of 
 his grade and class of service. 
 
 (e) If the employee is paid by the hour, multiply his 
 hourly wages at the time of the injury by the number of hours 
 customarily worked in a day at the occupation at which he 
 was working at the time of the injury by employees of his 
 grade and class of service, and then proceed as in (a). 
 
 • (/) If the employee is paid ty his output, find his 
 hourly wages at the time of the injury by dividing the total 
 amount earned by him in the employment in which and 
 at the rate of pay at which he was employed at the time of 
 
56 [43 
 
 the injury during so much of the thirty days next preceding 
 the injury, including the day of the injury, as he has so em- 
 ployed by the number of hours so employed during such 
 thirty days; then proceed as in (e). 
 
 (g) If any one of the foregoing methods of arriving at 
 the annual wages of an injured employee cannot reasonably 
 and fairly be applied, such annual wages shall be taken to be 
 the amount earned as wages by the average employee in the 
 same or most similar grade and class of service in the same 
 or most similar occupation as that in which the injured 
 employee was working at the time of the injury. 
 
 (h) The reasonable value of board, rent, housing, 
 lodging, fuel and other similar advantages which are re- 
 ceived from the employer as a part of the remuneration of 
 the employee and which can be estimated in money, and 
 the value of gratuities received in the usual course of busi- 
 ness from others than the employer, shall be included as 
 part of the annual wages. 
 
 (i) In seasonable occupations, for temporary dis- 
 abilities lasting less than a year, the average weekly earnings 
 may be taken at the actual wage at the time of the injury 
 for the rest of the working season, and thereafter at such 
 wages as may actually be earned by the average employee 
 in the same or most similar grade or class of service in other 
 occupations furnishing temporary employment during the 
 dull season. In seasonable occupations, for all disabilities 
 lasting more than a year, to the average annual wages which 
 might be earned during the working season in the occupation 
 at which the employee was engaged at the time of the injury 
 shall be added the average annual wages which may be earned 
 during the dull season by the average employee in the same 
 or most similar grade or class of service in other occupations 
 furnishing temporary employment. 
 
 (j) If it be established that the injured employee 
 was of such age and experience when injured that, under 
 natural conditions, his wages would be expected to increase, 
 that fact may be considered in arriving at his average 
 weekly wages. 
 
 (11) Where the injury is caused in any degree by th» fail- 
 ure of the employer to comply with any specific statute or lawful 
 specific order of the industrial commission, the compensation 
 shall be increased fifteen per cent, and where the injury is caused 
 
43] 57 
 
 in any degree by the willful failure of the employee to use any 
 safety appliance furnished by the employer or to obey any 
 reasonable rule adopted by the commission or employer for the 
 safety of the employee, or by the employee's intoxication, the 
 compensation shall be decreased fifteen per cent. 
 
 (12) No savings or insurance of the injured employee, or 
 any benefits derived from any other source than the employer 
 or the employer's insurer for liability under thi^ act, shall be 
 considered in determining the compensation under this act. 
 
 (13) Whenever any weekly payment has been- continued 
 for not less than six months, on the application of any party 
 and on notice to the other party, in any case where it will be for 
 the best interests of the parties the industrial commission in cases 
 determined by it, or the court in cases determined by it, may 
 commute the future payments for the whole or any part of the 
 period during which they are payable to a lump sum at an amount 
 which will equal the total sum of the probable future payments, 
 taking account of life contingencies, capitalized at present value, 
 upon the- basis of interest at four per cent per annum, with an- 
 nual rest, upon the payment of which the liability of the em- 
 ployer for such payments shall cease. On notice to the other 
 party the commission or the court may permit the employer to 
 be discharged from further liability by furnishing to the persons 
 entitled to compensation an annuity, or other obligation, ap- 
 proved by the commission or court, by which the probable future 
 payments are assumed by the employer's insurer or other respon- 
 sible insurance company or other third party approved by the 
 commission or court. In making the award of compensation 
 for a permanent disability of over fifty per cent, or within six 
 months ' thereafter on notice to the parties, the probable last 
 payments for not exceeding one year may likewise be commuted 
 in case where it shall appear that by reason of the injury there is 
 an immediate and proper necessity therefor. 
 
 (14) Upon notice to the parties any agreement, com- 
 promise or award of compensation may be reopened and re- 
 determined at any time before two years from the date the same 
 became operative, by the industrial commission, on the ground 
 that the disability of the injured employee has subsequently 
 increased or diminished, or that the agreement or compromise 
 was fraudulent or inadequate. 
 
 (15) The payment to the consul-general, consul, vice- 
 consul-general or vice-consul of the nation of which any depend- 
 
58 [43 
 
 ent of a deceased employee is a citizen or subject, or to the rep- 
 resentative of such consul-general, consul, vice-consul-general 
 or vice-consul residing in this State, of any compensation due 
 under this act to any dependent residing outside of the United 
 States, any power of attorney to receive and receipt for the same 
 to the contrary notwithstanding, shall be a full discharge of 
 liability for such payment. 
 
 Sec. 6. No agreement by an employee to waive his rights 
 for compensation under this act shall be valid, nor shall any 
 agreement of settlement or compromise of any dispute or claim 
 for compensation under this act be valid until approved by the 
 mdustrial commission, nor shall the commission approve any 
 settlement for less than is due under this act. 
 
 Sec. 7. Minors of the age of 16 years and over shall be con- 
 sidered as though they had attained their majority for all of the 
 purposes of this act, and any payment or agreement made to or 
 with such a minor shall be as valid as if he had attained his 
 majority. The industrial commission or the court befoie which 
 the proceedings for compensation are pending or may be deter- 
 mined may appoint a guardian for any minor under the age of 
 16 years, or for any person of unsound mind, whether employee 
 or dependent, which guardian shall represent his ward for all of 
 the purposes of this act and may be allowed reasonable compen- 
 saiion for his services, and before receiving any compensation 
 due his ward shall give bond in a suflTicient sum conditioned on 
 his properly accounting therefor. 
 
 Sec. 8. The compensation payable under this act whether 
 determined or due, or not, shall not be assignable, shall be 
 exempt from attachment, garnishment and execution, shall 
 not be subject to set-off or counter claim, and in case of insol- 
 vency or the levy of an attachment or execution shall be a Hen 
 upon the property of the employer prior to all other liens or 
 claims except for taxes and wages, save that where written no- 
 tice is given the employer of the nature and extent thereof the 
 industrial commission or the court may allow as a lien thereon, 
 reasonable attorneys' fees for services in connection with the 
 proceedings for compensation, and may order the amount thereof 
 paid direct to the attorney in a lump sum or in installments. All 
 attorneys' fees for service^ in connection' with proceedings for 
 compensation under this act shall be subject to regulation by the 
 industrial commission and shall be limited to such charges as 
 are fair and reasonable. 
 
43] 59 
 
 Sec. 9 (a) If there be two or more employers of the same 
 employee liable for compensation under this act, such employers 
 shall furnish compensation in the proportion of their several wages 
 to the injured employee, and if part of such employers are liable 
 for compensation under this act and part otherwise liable, re- 
 covery of the whole may be had against either according to 
 their respective liabilities, and the part held liable and their 
 insurer shall by subrogation be entitled to contribution from the 
 others and their insurers in proportion to their respective lia- 
 bilities. 
 
 (b) A contractor shall be liable to furnish compensation 
 to the employees of his subcontractor employed on the premise? 
 where the contractor is doing work, but the Subcontractor shall 
 be liable to the contractor for any compensation so furnished 
 by the contractor except in cases where the injured employee 
 was under the control or direction of the contractor, 
 
 (c) If the injury happens under circumstances making 
 persons other than the employer or the employer and any other 
 employee also, liable therefor, the employee or his dependents, in 
 case of death, may elect to hold either the employer or such other 
 persons, and- contribution shall exist between the employer ^and 
 his insurer and such other persons, but the employer shall not be 
 liable to contribute unless he was negligent nor for more than 
 his part of the compensation he might be required to furnish 
 under this act. 
 
 (d). In all actions for contribution against persons not 
 liable for compensation under this act, the person seeking 'con- 
 tribution shall be entitled to recover the proportionate part of 
 the commutable value of all compensation for which he may be 
 liable under this act whether the same is paid or due or not. 
 
 Sec. 10. At any time after the injury and during dis- 
 ability the industrial commission or the court of its own motion 
 or after a hearing on the application of the employer or his in- 
 surer, may require the employee to submit to reasonable medical 
 examination at such time and place as may be fixed by the com- 
 mission or by the court, due regard being had to the convenience 
 of the -employee and his physical condition and ability to attend 
 at the time and place fixed. The employee may have his own 
 physician present and if the employee refuses to submit to such 
 examination or in any way obstructs the same, his right to 
 compensation shall be suspended and his compensation during 
 such suspension may be forfeited. 
 
60 [43 
 
 Sec. 11. Any notice required under this act shall be deemed 
 to have been properly given and served when deposited in the mail 
 properly stamped and addressed to the person to whom to be 
 given at his last known address in time to reach him in' due 
 time to act thereon. Notice may also be given and served in 
 like manner as summons in civil actions. Any notice given and 
 served, as in this section provided, to and upon the consul-general, 
 consul, vice-consul-general or vice-consul of the nation of which 
 any dependant of a deceased employee is a citizen or glibject, 
 or to the representatives of such consul-general, consul, vice-con- 
 sul-general, or vice-consul, residing in this state, shall be deemed 
 to have been properly given and served upon such dependent. 
 
 Note. — Such provisfons have been held valid and not to violate the due 
 process clauses of the constitutions. See Hurley vs. Oloott, 198 N. Y. 132, 91 
 N. E. 207, 28 L. R. A. N. S. 238; Borgnis vs. Falk Go. 147 Wis. 327, 133 N.W. 209, 
 37 L. R. A. N. S. 489, 503. 
 
 Sec. 12. Neither this act nor any provision thereof shall 
 apply to any case of death or injury or the liability therefor aris- 
 ing under any act of congress. 
 
 Sec. 13. Every employer electing to furnish compensation 
 under the provisions of this act shall carry insurance against 
 his entire liability for the same, or such part thereof as may be 
 required by the Commission [excepting at his option liability 
 under Section 5 (1)], in some stock or mutual company, mutual, 
 interinsurance, reciprocal, interindemnity, or any other plan or 
 scheme, or other insurance carrier, authorized under the laws 
 of Missouri to insure against such liability and approved by the 
 Industrial Commission, and shall file with the Industrial Com- 
 mission a copy of his policy, unless 
 
 1. None of his employees have elected to accept 
 compensation as provided in this act, or 
 
 2. He shall at least, once a year, or oftener if required 
 by the Industrial Commission, satisfy the Commission of 
 his ability to furnish the compensation without danger of 
 loss to his employees, provided he shall pay into the State 
 treasury to the fund for the support of the commission a 
 sum equivalent to any tax on the amount of the premium he 
 would pay if he carried such insurance, which shall be fixed 
 by the commission. 
 
 No part of the cost of such insurance shall be assessed 
 against, collected from or paid by the employee. 
 
43] 61 
 
 Any such employer or its officers, directors, or agents, 
 assessing or collecting any part of the cost of such insurance 
 from any of his employees, or failing to comply with any of the 
 provisions of this section, shall be deemed guilty of a misde- 
 meanor and on conviction thereof shall be punished by im- 
 prisonment in the county jail for not less than one week or not 
 more than one year. 
 
 Sec. 14. (a) The rates charged by all carriers of insurance, 
 including the parties to any mutual, interindemnity, interinsur- 
 ance, reciprocal or other plan or scheme, writing insurance against 
 the liability for compensation under this act, for insurance 
 against such liability,' and against the liability of employers to 
 employees where either or both have not elected to furnish or 
 accept compensation under this act, shall be fair, reasonable 
 and adequate, with due allowance for merit rating, and all risks 
 of the same kind and degree of hazard shall be written at the 
 same rates by the same carrier. No policy of insurance against 
 hability for compensation under this act shall be valid until the 
 form and rate thereof has been approved by the Industrial 
 Commission, nor shall any such carrier of such insurance write 
 any such policy until its basic and merit rating schedules have 
 been filed with, approved and not subsequently disapproved by 
 the Industrial Commission. Each such insurance carrier shall 
 report to the Industrial Commission, in accordance with such 
 rules as it may adopt, such information as the Corrimission may 
 at any time require for the purpose of determining the solvency 
 of the carrier, the soundness of its business methods, and the 
 fairness, reasonableness and adequacy of its rates, and for such 
 purposes the members of the Commission may inspect the 
 books and records of any such carrier, and examine its officers, 
 agents and directors under oath. 
 
 For any violation of the provisions of this section or any 
 other part of this act, the Industrial Commission may by order 
 declare invalid and refuse to approve any such poHcy of insurance, 
 and the superintendent of the insurance department may suspend 
 or revoke the license or right of such carrier to do such business, 
 but nothing in this act shall be construed as giving to any such 
 carrier of insurance a license or right to carry on such business 
 or plan or scheme, nor as giving to the Commission any power 
 to authorize or recognize any such carri'-r or plan or scheme which 
 is not authorized or permitted under the laws of this State. 
 
62 [43 
 
 (b) No person, partnership, association, corporation, com- 
 pany, mutual company, nor the members of or parties to any 
 mutual, interindemnity, mterinsurance, reciprocal or other 
 plan or scheme, or any other insurance carrier shall write any 
 insurance against the liability for compensation under this act 
 unless such reserves, if any, are provided and maintained, as 
 may be required by the superintendent of the insurance de- 
 partment, the power to require which is hereby vested in the 
 superintendent. 
 
 Sec. 15. Every policy of insurance against liability for 
 compensation under this act shall cover the entire liability, or 
 such part thereof as may be required by 'the Commission [ex- 
 cepting at the option of the Employer liability under Section 5 
 (1)], shall be in a form approved by the Industrial Commission, 
 shall be deemed to be made subject io the provisions of this act, 
 any provisions thereof inconsistent with this act to be void, and 
 shall contain an agreement by the insurer that the insurer -ac- 
 cepts all of the provisions of this act, that in case the employer 
 shall be or become insolvent, or in case the employer fail to fur- 
 nish the compensation due or awarded and all damages and costs, 
 the employee, or his dependants, or any other person entitled 
 thereto may enforce their claim against the insurer to the same 
 extent that the employer could have enforced his claim against 
 the insurer had he furnished such compensation, that the insurer 
 shall be a party to all proceedings, under this act, and. his' appear- 
 ance may be entered therein and jurisdiction over his person 
 may be obtained as in this act provided, such covenants to be 
 unaffected by any default of the insured and among other things 
 to be construed to be a direct promise to the employee or his 
 dependants or the person to whom the employer was liable. 
 But nothing in this act shall be construed to impair the obliga- 
 tion of any contract existing at the time this act takes effect. 
 
 Sec. 16. Every employer and every insurance carrier 
 writing employers liability or compensation insurance shall, 
 within ten days after notice thereof, file with the Industrial 
 Commission, under such rules and regulations and in such form 
 and detail as the Commission may prescribe, a full and complete 
 report of every injury to an employee in the course of his em- 
 ployment the partial or total disability for which has lasted or 
 is likely to last more than one day, and shall furnish the Com- 
 mission with such information as it may require with respect to 
 the injury and the compensation furnished therefor. Every 
 
43] 63 
 
 employer, or insurance carrier writing employers liability or com- 
 pensation insurance, or any injured employee or his dependents, 
 or any other person receiving from the Commission any blanks 
 with directions to fill out the same shall cause the same to be 
 promptly returned to the Cortimission properly filled out so as 
 to answer fully and correctly each question propounded therein, 
 and a good and sufficient reason shall be given for failure to an- 
 swer any question. No information obtained under the provi- 
 sions of this section shall be disclosed to persons other than the 
 parties to claims and their attorneys, save by order of the Com- 
 mission, or at a hearing or proceedings, but such information 
 may be used by the Commission for statistical purposes. Every 
 employer, employee, carrier of insurance, their director, officer 
 or agent, every employee of the Industrial Commission and 
 every other person who violates any of the provisions of this 
 section or who knowingly makes a false statement in writing to 
 the Industrial Commission shall be deemed, guilty of a misde- 
 meanor and on conviction thereof shall be fined not less than 
 150.00 nor more than $500.00 or by imprisonment in the county 
 jail for not less than one week nor more than one year, or by 
 both such fine and imprisonment. 
 
 Sec. 17. No proceedings for compensation- under this act 
 shall be maintained unless written notice of the time, place and 
 nature of the injury, and the name and address of the person 
 injured shall have bieen given to the employer as soon as prac- 
 ticable after the happening thereof, unless the employer shall 
 have had actual notice thereof, nor shall the industrial com- 
 mission or any court have jurisdiction thereof unless a claim for 
 compensation shall have been filed with the Industrial commission 
 within six months after the occurrence of the same, or in case 
 payments have been made to the employee or his dependents on 
 account of the injury, within six months after the date of the Jast 
 payment or in case of death or physical or mental incapacity or 
 of minors under 16 years of age, within six months after death 
 or the removal of such incapacity. The appointment of a 
 guardian shall be deemed the removal of mental incapacity or 
 .the incapacity of minors under this section. 
 
 Sec. 18.. The filing of a notice of injury with the Industrial 
 'Commission by either an employer or his insurer shall constitute 
 ' an entry of the appearance of both such employer and his in- 
 surer in all proceedings for compensation before the commission 
 6r any member thereof, and ten days notice of the filing of a 
 
64 [43 
 
 claim for compensation given by the commission as in this act 
 provided shall be sufficient to give the commission or any member 
 thereof jurisdiction over the person of such employer and his 
 insurer in all proceedings on such claim for compensation. 
 
 Sec. 19. Upon receipt of a notice of injury or claim for 
 compensation the Industrial Commission or any member thereof 
 shall immediately notify the other parties notifying both the 
 employee and the employer if the notice of injury is given by an 
 insurer, and shall immediately proceed to send the parties the 
 proper blanks and investigate or hear, or refer, and determine 
 the claim in a summary manner. 
 
 Sec. 20. Before any hearing is had or reference is made the 
 Mtorney for the Industrial Commission shall recommend to the 
 parties a basis for settlement of the claim, and if all parties 
 agree thereto within ten days, or agree upon any other settle- 
 ment satisfactory to the commission, the commission shall make 
 an order awarding the compensation agreed upon. If the parties 
 do not agree upon a settlement within such time, the commission 
 or any member thereof shall hear and determine the claim and 
 make a finding of the facts and award compensation as in this 
 act provided, or may refer the claim to a referee appointed by the 
 commission or any member thereof, or to three arbitrators, one 
 selected by the commission or any member thereof, one by the 
 employer and one by the claimants. The referee or arbitrators 
 so selected shall immediately hear the claim at some time and 
 place designated by the commission or any member thereof, 
 or agreed upon by the parties, and shall immediately report his 
 or their findings to the commission, which shall award compensa- 
 tion in accordance therewith. If the claim is heard by one mem- 
 ber of the commission, his finding and award shall be deemed 
 that of the commission. Hearings shall be had at such time 
 and place as may be designated by the commission. 
 
 Any member of the commission may act as such third ar- 
 bitrator. In its discretion the commission may at any time 
 within five days from the receipt of the same refuse to accept 
 and set aside the findings of any such referee or arbitrators, or 
 the findings and award of such commissioner, and may order a 
 rehearing by the commission, which shall then rehear and de- 
 termine the claim and award compensation as soon as possible. 
 
 The commission may also within such time review its own 
 findings and award and order a rehearing of any claim. In 
 any case the commission or any member thereof may make a 
 
43] 65 
 
 temporary or partial award of compensation, and from time to 
 time may modify the same, to meet the needs of the case until 
 a final award can be made, and if the same be not complied with 
 the amount thereof shall be doubled in the final award, if the 
 final award shall be in accordance with the temporary or partial 
 award. 
 
 Sec. 21. Any award made by the Industrial Commission 
 shall be final and conclusive as between the parties as to the 
 matters therein determined and shall be subject to review only 
 as herein provided and only on the grounds that the commission 
 acted without or in excess of its powers, that the award was pro- 
 cured by fraud or that the findings of fact do not support the 
 award. Within fifteen days from the date of the award any 
 party aggrieved thereby may file in the Circuit Court of the 
 County wherein the hearing was had or in the Circuit Court of 
 Cole County, an action against ther commission for a review of 
 the award,- in which action the other parties shall also be made 
 defendants. Summons shall issue to any county in the state 
 and shall be returnable within 30 days. Service upon the com- 
 mission may be had by serving the secretary or any member of 
 the commission and in case any party cannot be personally 
 served with process in this state in the manner prescribed for 
 civil actions, such party may be served by any of the methods pro- 
 vided in Section 11 of this act. Each party shall answer within 
 20 days after service and with its answer the commission shall 
 return to the court all documents and papers on file in the mat- 
 ter together with all testimony which may have been taken and 
 preserved therein and the findings and award, which shall 
 thereupon become part of the record in the cause. Upon the 
 setting aside of any award the court may remand the cause to 
 the commission for further hearing or proceedings, or it may enter 
 the proper judgment upon the findings as the nature of the case 
 shall demand. Such action shall not operate as a supersedeas 
 or stay of proceedings on an award against an employer, or his 
 insurer, or both, unless there be filed therewith a bond with 
 good and sufficient security in at least double the commutable 
 value of the compensation awarded, conditioned and with the 
 same rights and remedies to the parties as bonds on appeals 
 from justices of the peace in civil cases. Any party may appeal 
 from any final action of the Circuit Court in such case to the 
 Supreme Court and in both Circuit and Supreme Courts the case 
 
 43—5 
 
66 [43 
 
 shall have precedence over all actions of a civil nature except 
 election contests. 
 
 Sec. 22. In case no such action for review is filed within 
 such time, a certified copy of any findings and the award made 
 thereon and the date thereof may be filed at any time without 
 notice in the Circuit Court of any county of this State, and the 
 court shall immediately render judgment thereon in accordance 
 with the award. Such judgment shall have all of the incidents 
 of a judgment rendered in such court, save that no appeal or writ 
 of error shall lie therefrom and the same shall be subject to re- 
 view only by the Supreme Court in proceedings by certiorari 
 brought within sixty days to which the commission shall also be 
 made a party, and only on the ground that under the finding the 
 award is wrong as to a matter of law apparent on the face thereof. 
 Certified copies of. any modifications in the findings or award 
 may likewise be filed with like effect. The lien of such judg- 
 ment shall continue during the compensation period, and the 
 same may be revived as other judgments, but satisfaction 
 thereof may be entered on motion upon notice to the other 
 parties and proof of the payment thereof, or the deposit in 
 court of the commutable value thereof. 
 
 Sec. 23. Other proceedings under this act shall be as 
 prescribed in the act creating the Missouri Industrial Com- 
 mission and the rules and regulations adopted by the Com- 
 mission in accordance therewith, and this act shall be adminis- 
 tered by the Missouri Industrial Commission. 
 
 Sec. 24. Any employer, his officer, director, or agent, 
 who in any way discriminates against or discharges an employee 
 for exercising any right under this act, shall be deemed guilty of 
 a misdemeanor and on conviction thereof shall be punished by 
 imprisonment in the county jail for not less than one week nor 
 more than one year, t 
 
 Sec. 25. The short title of this act shall be the Workmen's 
 Compensation Act. 
 
 Sec. 26. All acts or parts of acts in conflict or inconsistent 
 herewith are to that extent hereby repealed. 
 
 Sec. 27. There being no adequate laws for the compen- 
 sation of injured employees and the other subjects covered by 
 this act and such a law being necessary for the immediate pres- 
 ervation of the public peace, health and safety, creates an 
 emergency within the meaning of the constitution and this act 
 shall take effect on June 1, 1915. 
 
43] 67 
 
 AN ACT 
 
 To create the Missouri Industrial commission, prescribing 
 its powers and duties, to provide for the regulation of places 
 where labor is employed, to require annual reports from em- 
 ployers, repealing Sections 6728, 6729 as amended, 6737, 7783- 
 7793, inclusive, 7794 as amended, 7795-7796, inclusive, 7802-7811, 
 inclusive, 7823-7827, inclusive, 7869, 8464 as re-enacted, 8480- 
 8484, inclusive, and 8496, of the Revised Statutes of Missouri of 
 1909, prescribing punishments for violations thereof, repealing 
 all acts, and parts of acts inconsistent therewith, and declaring 
 that the same is necessary for the immediate preservation 
 of the public peace, health and safety, with an emergency clause. 
 
 Be it enacted by the General Assembly of the State of Missouri, as 
 follows: 
 
 Section 1. There is hereby created a commission to be 
 known and styled the Missouri Industrial Commission, consist- 
 ing of five members appointed by the governor, by and with the 
 advice and consent of the Senate, one of whom shall be desig- 
 nated by the governor to be, and upon being so designated shall 
 be chairman of the commission. Each comrhissioner, at the 
 time of his appointment and qualification, shall be a resident of 
 this State, and shall have resided therein for a period of at least 
 five years next preceding his appointment and qualification, 
 and he shall be a qualified voter therein and not less than 25 
 'years of age. One commissioner shall hold office for 2 years, 
 two for 4 years, and two for 6 years, from the beginning of their 
 respective terms of office and until their successor shall qualify 
 the terms of the respective commissioners to be designated 
 by the governor. The term of office of each commissioner shall 
 begin on the date of the taking effect of this act, and the appoint- 
 ment of each commissioner shall be made and announced by the 
 governor immediately after the taking effect of this act. Upon 
 the expiration of each of said terms, the term of office of each 
 commissioner thereafter appointed shall be six years from the 
 time of his appointment and qualification, and until his succes- 
 sor shall qualify. Vacancies on said commission, or in the office 
 of chairman, shall be filled by the governor for the unexpired 
 term, but no vacancy shall impair the rights of the remaining 
 commissioners to exercise all the powers of the commission, and 
 
68 [43 
 
 the remaining members shall exercise all of the powers and author- 
 ity of the commission until such vacancy is filled. 
 
 Sec. 2. The governor may remove any commissioner for 
 inefficiency, neglect of duty, or misconduct in office, giving him 
 a copy of the charges against him and an opportunity of being 
 publicly heard in person or by counsel in his own defense, upon 
 not less than ten days' notice. If such commissioner shall be 
 removed, the governor shall file in the office of the secretary of 
 state a complete statement of all charges made against such 
 commissioner and his findings thereon, together with a complete 
 record of the proceedings. Any commissioner may also be re- 
 moved by the senate for inefficiency, neglect of duty, or mis- 
 conduct in office, upon impeachment by the house of represen- 
 tatives, in like manner as upon impeachment of the secretary of 
 state. 
 
 Sec. 3. Each commissioner and each person appointed 
 to office or employment by the governor or the commission, shall, 
 before entering upon the duties of his office or employment, 
 take and subscribe to an oath or affirmation to support the 
 constitution of the United States and of this State, and to faith- 
 fully and honestly discharge the duties of such office or employ- 
 ment. Each commissioner and each person appointed to office 
 or employment by the governor or the commission shall give 
 his whole time to the duties of his office or employment, and 
 shall not be financially interested in any business interfering or 
 inconsistent with his duties, nor serve on any committee of any 
 political party. 
 
 Sec. 4. The governor shall likewise appoint an attorney- 
 at-law, who shall possess the same qualifications as judges of 
 the Supreme Court, to be and act as attorney for the commission. 
 The term of office of such attorney shall be for four years and 
 until his successor shall quaUfy, beginning on the date of the 
 taking effect of this section of this act, and thereafter every four 
 years an attorney shall be so appointed for a like term, the 
 governor having; power to fill vacancies for the unexpired term. 
 Such attorney may be removed at any time by the governor or 
 the comrtiission for like causes and in like manner as in cases of 
 removal of commissioners. When requested by the commis- 
 sion, the governor may authorize the attorney to employ as- 
 sistants for the performance of such extraordinary legal services 
 for or in behalf of the commission at such special compensation 
 
43] 69 
 
 as the attorney, with the approval of the governor, may pre- 
 scribe. ^ 
 
 Sec. 5. It shall be the duty of the attorney to represent 
 and appear for the State, and for the commission, or any com- 
 missioner, in all actions brought by or against the commission, 
 or any commissioner, and in all actions and proceedings in- 
 volving any question under this or any other act, or under or in 
 reference to any act, order, decision or proceeding of the com- 
 mission, or of any commissioner, and if directed to do so by the 
 commission, to intervene, if possible, in any action or proceeding 
 in which any such question is involved; to commence and pros- 
 ecute in the name of the State all civil or criminal actions or 
 proceedings authorized by law and directed or authorized by the 
 commission, and to expedite, in every way possible, to final de- 
 termination, all such actions and proceedings; to advise the 
 commission, and each commissioner when so requested in regard 
 to all matters in connection with the jurisdiction, powers and 
 duties of the commission and the members thereof, and generally 
 to perform all duties and services as attorney and counsel which 
 the commission may reasonably require of him. 
 
 Sec. 6. The commission may appoint a medical adviser, 
 who shall be a physician in good standing, licensed to practice 
 and residing in this State for at least five years preceding his 
 appointment, at least 30 years of age, and shall serve during the 
 pleasure of the commission. It shall be his duty to advise and 
 assist the commission and each member and employee thereof as 
 to all medical questions arising in connection with the perform- 
 ance of their duties, to aid and assist in the compilation of sta- 
 tistics, investigate and examine injuries and sanitary conditions, 
 and to perform such other duties as may be imposed upon him 
 by the commission. 
 
 Sec. 7. The commission may appoint a secretary, who shall 
 serve during the pleasure of the commission. He shall keep a 
 full and true record of all of the proceedings of the commission, 
 of all books, maps, charts, exhibits, models, documents and 
 papers ordered filed or preserved by the commission, and of all 
 orders made by each of the commissioners, and of all orders made 
 by the commission or approved and confirmed by it and ordered 
 filed, and he shall be responsible to it for the safe custody and 
 preservation of all such documents at its office. He shall also 
 issue and attest all necessary processes, writs, warrants and 
 notices, tax all costs, and certify to all records, proceedings and 
 
70 [43 
 
 papers. Under the general direction of the commission the 
 secretary shall have general charge of its offices, superintend its 
 clerical business and perform such other duties as the commission 
 may prescribe. He shall have power to administer oaths in 
 all parts of the State, so far as the, exercise of such authority is 
 properly ^incidental to the performance of his duties or those of 
 the commission. The commission may also appoint such assist- 
 ant secretaries as may be necessary, and such assistant secretaries 
 may perform any duty of the secretary when so directed by the 
 commission. 
 
 Sec. 8. The commission shall have power to employ during 
 its pleasure, and prescribe the powers and duties of such assistant 
 secretaries, assistant medical advisers, clerks, stenographers, 
 experts, agents, special agents, examiners, physicians, statisti- 
 cians, actuaries, auditors, accountants, inspectors, assistant 
 attorneys, reporters, referees, arbitrators and other appointees 
 or employees as it may deem to be necessary to carry out the 
 provisions of this and other acts, or to perform the duties and 
 exercise the powers conferred by law upon the commission. 
 
 Sec. 9. The principal office of the commission shall be at 
 the State capital at Jefferson City, which shall be provided and 
 assigned by the commission of permanent seat of government. 
 The commission may also maintain offices in such other places in 
 the State as may be fixed by the commission. The commission 
 shall at all times, except Sundays and legal holidays, be open 
 and in session for the transaction of business. Its offices shall be 
 open during business hours on all. days except Sunday and legal 
 holidays, and one or more responsible persons, designated by the 
 commission, or by the secretary, under the direction of the 
 commission, shall be on duty at all times in immediate charge 
 thereof. The offices of the commission shall be supplied with 
 all necessary books, maps, charts, stationery, office furniture, 
 telephone and telegraph connections, and all other necessary ap- 
 pliances and incidentals, to be paid for in the same manner as 
 other expenses authorized by this act. 
 
 Sec. 10. The commission may sue, and be sued, in its 
 official name and shall have an official seal, bearing the follow- 
 ing inscription: "Missouri Industrial Commission." The seal 
 shall be affixed to all writs and authentication of copies of records, 
 papers on file, and to such other instruments as the commission 
 shall direct, and all courts shall take judicial notice of said seal. 
 Copies of the records and proceedings of the commission, and of 
 
43] 71 
 
 all papers on file in the offices of the commission, certified under 
 the said seal, shall be evidence in all courts of this State. 
 
 Sec. 11. The commission shall promptly and duly organize, 
 and may subdivide among its members its various duties. 
 The chairman shall preside at all meetings of the commission and 
 shall designate from time to time, by an order entered of record, 
 some member of the commission to act as chairman during his 
 absence or sickness, and during such time the commissioner so 
 appointed shall possess all the powers of the chairman appointed 
 by the governor. The chairman may, from time to time, desig- 
 nate a commissioner to perform particular duties in the absence 
 of a quorum. A majority of the commissioners shall constitute 
 a quorum for the transaction of any business, for the performance 
 of any duty, or for the exercise of any power of the commission, 
 and may hold meetings of the commission at any time or place 
 within the State. Any investigation, inquiry or hearing which 
 the commission has power to undertake or hold, may be under- 
 taken or held by or before any commissioner. All investigations, 
 inquiries, hearings, awards and decisions of the commission, and 
 every order and decision made by a commissioner, when approved 
 and confirmed by the commission and ordered filed in its office 
 shall be and be deemed the order, decision or award of the 
 commission. 
 
 Sec. 12. The annual salary of each commissioner shall be 
 $5000.00, that of its attorney $4000.00, that of its medical ad- 
 viser $4000.00, and that of its secretary $3600.00. All other 
 persons appointed or employed by the commission shall receive 
 such compensation as may be fixed by the coriimission, but no 
 actuary, statistician, expert, assistant attorney, or assistant med- 
 ical adviser shall receive a salary or compensation exceeding 
 $300.00 per month; no assistant secretary, clerk, agent, special 
 agent, examiner, auditor, accountant, inspector, reporter, or other 
 employee shall receive a salary or compensation exceeding 
 $200.00 per month, and no stenographer shall receive a salary 
 or compensation exceeding $100.00 per month. The commis- 
 sioners, the attorney and assistant attorneys, the secretary and 
 assistant secretaries, the medical adviser and assistant medical 
 adviser, their clerks, stenographers, experts, agents, special 
 agents, examiners, auditors, physicians, statisticians,, accountants, 
 inspectors, reporters, referees, arbitrators and other appointees 
 or employees; shall have reimbursed to them their actual traveling 
 expenses and disbursements made or incurred by them in the 
 
72 [43 
 
 discharge of their official duties while away from their regular 
 ofTices and places of residence in the performance of their duties. 
 Any commissioner sent by the commission to another State to 
 investigate or attend a convention, shall have reimbursed to 
 him his actual traveling expenses and disbursements on such 
 mission. All salaries and expenses of the commission and its 
 appointees or employees shall be audited and allowed by the 
 State auditor, and paid monthly by the State treasurer upon the 
 order of the auditor out of the funds provided therefor. 
 
 Sec. 13. (a) Every employer shall construct, equip, 
 arrange, operate, maintain and conduct all rooms, buildings, 
 places, machinery or equipment, where or about which labor is 
 employed, so as to provide reasonable and adequate protection 
 for the life, health, safety and physical and moral welfare of all 
 persons employed therein or thereat, and shall furnish and use 
 such safety devices and safeguards, adopt and use such methods 
 and processes, and do such other things as shall be reasonably 
 adequate and necessary for the protection of the life, health, 
 safety and physical and moral welfare of all persons employed 
 by him, and shall obey all orders of the commission, prescribing 
 what is reasonably adequate and necessary for such purposes. 
 No employer shall require or permit or suffer any employee to 
 go or be in any employment, or place of employment, which is 
 not reasonably safe. 
 
 (b) No employee shall remove, displace, damage, destroy, 
 carry off, tamper with or refuse to use any proper safety device 
 or safeguard furnished or provided for use in any employment, 
 or place of employment, or interfere in any pay with the use 
 thereof by any other person, or interfere with the use of any 
 proper method or process adopted for the protection of any em- 
 ployee in such employment, or place of employment, or fail or 
 neglect to obey all lawful orders of the commission, or to do every 
 other thing reasonably necessary to protect the life, health, . 
 safety and physical and moral welfare of such employees. 
 
 (c) Every employer in this State shall annually, on or be- 
 fore the first day of March, file with the commission, under such 
 rules and regulations, and in such form and detail as the com- 
 mission may prescribe, a full and complete report for the pre- 
 ceding calendar year, containing the name under which he 
 does business, and if a partnership, corporation or other associa- 
 tion, the number of members, male and female, composing the 
 same, where the business ^ is located, the capital invested in 
 
43] 73 
 
 grounds, buildings and machinery, the class and value of goods 
 manufactured, the aggregate value of raw material used, total 
 number of days in operation, the amount paid yearly for rent, 
 taxes and insurance, the total amount paid in wages, the total 
 number of employees, male and female, the number engaged in 
 clerical and manual labor with detailed classification of the 
 number and sex of employees engaged in each class, and the 
 average daily wages paid to each, together with the name and 
 address of each employee receiving an injury arising out of and 
 in the course of his employment, the total or partial disability 
 for which has lasted for more than one day; the nature, cause 
 and duration of such disability, and the amounts paid the em- 
 ployee and otherwise expended therefor, together with such 
 other information as the commission may reasonably require in 
 the proper performance of its duties. Any employer, his direc- 
 tors, ofTicers or agents, receiving from the commission any 
 blanks for the above purposes, with directions to fill out the same, 
 shall cause the same to be promptly returned to the commission, 
 properly filled out so as to answer fully and correctly each ques- 
 tion propounded therein, and a good and sufficient reason shall 
 be given for failure to answer any question. No information 
 obtained under the provisions of this section shall be disclosed, 
 but the same may be used by the commission for statistical pur- 
 poses. 
 
 (Note. — The first half of this section is almost the exact language of Section 
 7792 R. S. 1909. The last half is almost the exact language of Section 16 of the 
 workmen's, compensation act. See also Sections 7791, 7793, and 7827 R S. 1909.) 
 
 (d) No employer or any other person shall refuse to per- 
 mit or shall in anywise obstruct the commission, or any of its 
 members, appointees or employers, from at any time inspecting 
 the premises of the employer, or his books and records, for the 
 purpose of performing any of the duties imposed by this act 
 upon the commission or incidental thereto. Nor shall any 
 employer, or any other person in charge of the place of employ- 
 ment at the time, refuse to give the commission or any of its 
 members, appointees or employees, full information as to the 
 number of employees and other matters necessary to a proper 
 
 inspection. 
 
 (e) Any employer, his directors, officers or agents, or any 
 employee; or any employee of the commission, or any other 
 person, who shall violate any of the provisions of Section 13 of 
 this act, or who shall make a false statement in writing to the 
 
74 [43 
 
 commission, shall be deemed guilty of a misdemeanor, and on 
 conviction thereof shall be punished by a fine of not less than. 
 $50.00 nor more than $5000.00, or by imprisonment in the county 
 jail for not less than one week nor more than one year, or by 
 both such fine and imprisonment. 
 
 Sec. 14. Sections 6728, 6729 as amended, 6737, 7783- 
 7793 inclusive, 7794 as amended, 7795-7796, inclusive, 7802- 
 7811, inclusive, 7823-7827, inclusive, 7869, 8464 as re-enacted, 
 8480-8484, inclusive, and 8496, of the Revised Statutes of Mis- 
 souri of 1909, as amended, are hereby repealed, and all of the offi- 
 ces and employments created thereby are hereby abolished, and 
 all of the records, fixtures and papers thereof are hereby trans- 
 ferred to the commission, and all of the moneys collected by or 
 payable into the funds of the departments therein mentioned, 
 shall be collected by the commission, turned into the State 
 treasury and credited to the fund for the expenses of this act. 
 
 NOTE. — Sections 6728, 6729 as amended (Laws 1913 p. 353) and 6737 relate 
 to the Hotel Inspector and his deputies and the payment of their fees into the 
 state treasury. 
 
 Sections 7783-7793 relate to the Bureau of Labor Statistics. 
 
 Sections 7794 as amended (Laws 1911 p. 310) and 7795-96 relate to Employ- 
 ment Bureaus and Agents. 
 
 Sections 7802-7811 relate to the Board of Mediation and Arbitration. 
 
 Sections 7823-7827 and 7869 relate to the State Factory Inspector. 
 
 Section 8464, as re-enacted (Laws 1913 p. 409) relates to the Bureau of Mines. 
 
 Sections 8480-8484 and 8496 relate to the Board of Coal Mining. 
 
 Sec. 15. Full power and jurisdiction is hereby conferred 
 and the duty imposed upon the commission: 
 
 (a) To hear, refer and determine all claims for compensa- 
 tion, to award compensation, to prescribe the form and manner 
 of giving notices of election, to regulate the fees and charges 
 for medical, surgical and hospital treatment, including nursing, 
 medicines, medical and surgical supplies, crutches and apparatus, 
 for the last illness and burial, and for attorneys' services, to ap- 
 prove or disapprove of insurance carriers or plans or schemes for 
 insuring against liability for compensation, and prescribe the 
 forms of policies therefor, to regulate the rates charged by all 
 carriers of insurance, or under any plan or scheme for insuring 
 against the liability of employers to employees for compensation 
 or at common law, or under any statute, approve or disapprove, 
 or after having approved, subsequently disapprove of such 
 rates, or any basic schedule or merit rating system, to require 
 each insurance carrier, or the persons in any plan or scheme 
 for insuring against such liabilities to report to the commission, 
 
43] 75 
 
 in accordance with such rules as it may adopt, such information 
 as it may require for the purpose of determining the solvency of 
 such insurance carrier, plan or scheme, the soundness of its 
 business methods and the fairness, reasonableness and adequacy 
 of its rates, and for such purposes to examine its books and rec- 
 ords and its officers, agents or directors under oath, to declare 
 invalid and refuse ,to approve any such policy of insurance, to 
 prescribe rules for determining the percentage of permanent 
 disability and the percentages thereof, to commute compensa- 
 tion to a lump sum, to reopen and redetermine awards for com- 
 pensation, to disapprove or approve of settlements or compro- 
 mises, to appoint guardians for persons under disability and 
 minors under 16 years of age, approve their bonds and fix their 
 compensation, to examine injured employees, to give notices, 
 to require employers and employees to report injuries and the 
 facts in regard thereto, and the compensation furnished therefor, 
 to recommend to the parties a basis of settlement, to appoint 
 referees and arbitrators, to investigate claims, and to construe 
 and decide all questions arising under and administer the work- 
 men's compensation act, and exercise all other powers and duties 
 imposed on the commission by said act, and to make special pro- 
 vision for the administration thereof. 
 
 (b) To exercise all the powers and perform all the duties 
 now conferred and imposed by any law ypon the Inspector of 
 Hotels, the Bureau of Labor Statistics, Commissioner of Labor 
 Statistics, Commissioner of the Bureau of Labor Statistics, State 
 Board of Mediation and Arbitration, and its members. Factory 
 Inspector, Bureau of Mines, Mining and Mine Inspection, State 
 Bureau of Mines, State Chief Mine Inspector, Coal Mine In- 
 spector, State Board of Coal Mining, Mine Inspectors, State 
 Mining Board, and their respective inspectors, secretaries, 
 deputies, assistants, clerks, statisticians, and other appointees or 
 employees, and to carry out the provisions and prosecute the 
 violations of such laws, and all rights or privileges, reports or other 
 information required to be furnished or given to them, shall be 
 furnished and given to the commission, its appointees or em- 
 ployees. 
 
 ' (c) To have such supervision of every employment and 
 every room, building, or other place of employment, as may be 
 necessary adequately to enforce all laws and lawful orders of 
 the commission requiring such employment, or place of employ- 
 ment, or the machinery or equipment, at which labor is employed. 
 
76 [43 
 
 to be so constructed, equipped, arranged, operated, maintained 
 and conducted as to provide reasonable and adequate protection 
 for the life, health, safety and physical and moral welfare of all 
 persons employed therein, or thereat, to enter and inspect 
 all such places, and the books and records of the employer 
 for the purpose of exercising the powers and performing the 
 duties conferred and imposed upon the cornmission under this 
 act, and to enter and inspect every hotel and bakeshop for the 
 purpose of enforcing the provisions of Sections 6716-6737, in- 
 clusive, and 7862-7870, inclusive, of the Revised Statutes of 
 Missouri of 1909, and all amendments thereto, and any other 
 laws relating to hotels, inns and boarding houses, or bakeshops, 
 the power and duty to enforce which is hereby conferred and im- 
 posed upon the commission. 
 
 (d) Of its own motion or on complaint, to ascertain and 
 fix such reasonable standards, safety devices, safeguards, methods 
 or processes for the equipment, arrangement, operations, main- 
 tenance and construction of all rooms, buildings, places, ma- 
 chinery or equipment where or about which labor is employed, 
 as shall provide reasonable and adequate protection for the life, 
 health, safety and physical and moral welfare of all persons em- 
 ployed therein or thereat, and in particular cases to order a 
 particular employer to adopt such particular safety devices, 
 safeguards, methods or processes for the equipment, operation, 
 maintenance and construction of his rooms, buildings, places, 
 machinery or equipment, where or about which labor, is em- 
 ployed, as shall provide reasonable and adequate protection for 
 the life, health, safety and physical and moral welfare of all 
 persons employed therein or thereat. 
 
 (e) To collect, assort, classify and systematize and pub- 
 lish statistical details and information relating to all departments 
 of labor in the State, especially in its relations to the cdmmercial, 
 industrial, social, educational and sanitary condition of the 
 laboring classes, and to the permanent prosperity of the pro- 
 ductive industries of the State, to collect, compile, assort, 
 classify and systematize and publish such statistics as may be 
 necessary for the regulation of insurance rates, the study of 
 the causes, number, compensation for and prevention of in- 
 dustrial accidents and occupational diseases, the operation of 
 the schedule under and of the workmen's compensation act, 
 and to collect, compile, assort, classify and systematize and 
 publish such other statistics and information as in the judgment 
 
43] 77 
 
 of the commission will aid in the performance of its duties or be 
 for the public good. 
 
 (f) To license and regulate employment offices, agencies or 
 bureaus, and enforce all the laws in regard thereto, to establish 
 in any city of this State having 25,000 inhabitants or more, a 
 free public employment bureau, and adopt rules for the conduct 
 thereof, and do all in its power to bring together employers 
 seeking employees and persons seeking employment, to make 
 known the opportunities for employment and self-employment 
 in this State, to aid in inducing minors to undertake promising 
 skilled employments, to investigate the extent and causes of 
 unemployment in the State, and the remedies thereof in other 
 States and countries, and shall devise and adopt the most 
 efficient means in its power to avoid unemployment, to provide 
 employment, and to prevent distress from involuntary idleness. 
 
 (NOTE. — Ab to employment bureaus and agents, see Sections 7794-96 RS. 
 1909, as amended by Laws of 1911, page 310. This section extends the power to 
 establish free employment bureaus in cities having 25,000 inhabitants or more.) 
 
 (g) Whenever a strike or a lock-out is about to occur, or is 
 seriously threatened, involving ten or more persons, to proceed 
 as soon as possible to the locality of such dispute, strike or 
 lock-out, and place itself in communication with the parties to 
 the controversy and endeavor by mediation to effect a settlement, 
 and it shall be the duty of the parties to the dispute to submit the 
 same to the commission for investigation. For not exceeding 
 one week pending the investigation and decision, it shall be un- 
 lawful for a strike or a lock-out to be declared, and as soon as 
 possible the commission shall notify the parties and render and 
 publish a decision stating such details as will clearly show the 
 nature of the controversy and the points in dispute disposed of 
 by them, and indicating a proper settlement of the dispute, which 
 decision shall be published in some newspaper of general circu- 
 lation in the locality. In cases where the application for arbi- 
 tration is mutual, or both parties agree to submit to a decision of 
 the commission, the decision shall be final and binding upon the 
 parties unless excepted to within five days thereafter. 
 
 (NOTE.— ^This section is substantially the same as Section 7806 R. S. 1909, 
 except as to the provision as to publication and as to the provision making it 
 unlawful to declare a strike or lockout pending the investigation, which changes 
 are in accord with the most advanced ideas on both sides of the subject.) 
 
 (h) To hold hearings and rehearings on any matter within 
 its jurisdiction, powers and duties or necessarily incidental there- 
 
78 [43 
 
 to, and exercise its jurisdiction, powers and duties except as other- 
 wise provided in this act, in any part of the State. 
 
 (i) To issue process, subpoena witnesses, administer oaths, 
 and examine books and papers, and require the production 
 thereof, appoint referees and arbitrators, and fix their compensa- 
 tion, tax and assess costs, cause depositions to be taken, and make 
 orders and require compliance therewith, which powers 'may be 
 exercised by any commissioner. 
 
 (j) To establish and maintain museums ^nd libraries of 
 safety and hygiene, in which shall be exhibited safety devices, 
 safeguards and other means and methods for the protection of 
 the life, health, safety and physical and moral welfare of em- 
 ployees, and to pubUsh and distribute bulletins on any phase of 
 this general subject, to cause lectures to be delivered, illustrated 
 by stereopticon or other views, diagrams or pictures, for the 
 information of employers and their employees, and the general 
 public, in regard to the causes and prevention of industrial acci- 
 dents, occupational or other diseases and related subjects, and 
 to appoint advisers, who shall, without compensation^ assist the 
 commission in establishing standards of safety, and the com- 
 mission may adopt and incorporate in its orders such safety 
 recommendations as it may receive from such advisers. 
 
 (k) To authorize any of the commissioners, or any of its 
 employees or appointees, or the appointees of the governor, to 
 do or perform anything which the commission is authorized to 
 do by this act, but no order, rule or regulation, finding or deci- 
 sion of any person other than the commission, shall be binding, 
 unless approved by the commission. 
 
 (1) To adopt rules and regulations for procedure before and 
 of the commission, its members, referees, arbitrators, and make 
 such orders as shall be necessary to the exercise of the powers, 
 jurisdiction and duties of the commission, which rules, regula-. 
 tions or orders, and the findings and decisions of the commission, ■ 
 shall be admissible in evidence in every prosecution, action or 
 proceeding, and shall be conclusively presumed to be reasonable 
 and lawful, or to fix a proper standard and requirement of what 
 is reasonable and adequate for the protection of the life, health, 
 safety and physical and moral welfare of employees, until found 
 otherwise in a suit brought for that purpose under the provi- 
 sions of this act. Such rules, orders or regulations shall take 
 effect at any time decided upon by the commission, which may 
 extend said time. 
 
43] 79 
 
 (m) To have, in addition to the powers and duties herein 
 specified, mentioned or indicated, all additional, implied and 
 incidental powers which may be proper and necessary to effec- 
 tually fcarry out, perforrti and execute all of the powers and 
 duties specified, mentioned and indicated in this or any other act. 
 
 Sec. 16. (a) Hearings may be had by the commission of 
 its own motion, or on the complaint of any person, or in such 
 other manner as may be provided by law, or by rule, or order of the 
 commission, and in all cases the parties thereto shall be notified 
 of the tirhe and place. The commission may refer any pro- 
 ceeding or matter to any referee or arbitrators, who shall report 
 their findings as soon as possible to the commission, and shall be 
 entitled to such a compensation, not exceeding $10.00 per day, 
 as the commission may fix, which shall be paid out of the State 
 treasury. Such referee or arbitrators shall have power to admin- 
 ister oaths, subpoena and examine witnesses under oath, examine 
 or cause books and papers to be produced, and such other powers 
 as may be necessary. 
 
 (b) In all hearings or proceedings before any commissioner, 
 or the commission, or any of its referees, arbitrators or other 
 employees or appointees, the proceedings shall be simple and 
 summary, and without regard to the rules of evidence or the forms 
 of law, and no defect or irregularity therein shall invalidate the 
 same. 
 
 (c) The commission, any of its members, appointees or em- 
 ployees, and any party to such hearing or proceeding, shall be 
 entitled to process to compel the attendance of witnesses and the 
 production of books and papers, and may take and use depositions 
 in Hke manner as in civil cases in the Circuit Court. Subpoena 
 shall extend to all parts of the State, and may be served as in 
 civil actions in the Circuit Court, and the person serving the same 
 shall be entitled to the same fees as are allowed by law in such 
 cases. Each witness shall receive for his attendance the fees 
 and mileage prescribed by law in civil cases. The fees and mile- 
 age of witnesses subpoenaed, or the costs of any deposition taken 
 by the commission, or any commissioner, shall be approved by 
 the commission and paid out of the State treasury as other 
 claims against the State. 
 
 (d) In all cases all costs shall be taxed by the commission 
 and shall be the same as costs in civil cases in the Circuit Court. 
 In all proceedings on claims for compensation under the Work- 
 men's Compensation Act the costs, as in civil actions, incurred 
 
80 [43 
 
 by the claimant shall be taxed against the employer and his in- 
 surer unless he prevail. In other cases all costs incurred by any 
 party shall be paid by such party. Every public officer, with- 
 out exacting a fee or charge therefor, shall furnish the commis- 
 sion, on application, with a certified copy of any document, or 
 part thereof, on file in his office, and no public officer shall be 
 entitled to receive from the commission any fee for entering, 
 filing, docketing or recording any document required or au- 
 thorized by law to be filed in his office. 
 
 (e) If a person subpoenaed to appear before any commis- 
 sioner, the commission, or any of its referees, arbitrators, or other 
 appointee or employees, fails to obey the command of such sub- 
 poena without reasonable cause, or if a person in attendance 
 upon any hearing or proceeding before such body or persons 
 shall, without reasonable cause, refuse to be sworn, or to be 
 examined, or answer a question, or to produce a book or paper, or 
 to subscribe or swear to his deposition after it has been correctly 
 produced in writing, he shall be deemed guilty of a misde- 
 meanor, and on conviction thereof shall be punished by a fine of 
 not less than $50.00 nor more than $500.00, or by imprisonment 
 in the county jail for not less than one week nor more than one 
 year, or by both such fine and imprisonment, and may be prose- 
 cuted therefor in any court of competent jurisdiction, and in 
 case of a continuing violation, each day's continuance thereof 
 shall be, and be deemed to be, a separate and distinct offense. 
 
 (f) The commission may require, by order or notice given 
 to or served upon any person, as in this act provided, the produc- 
 tion within this State at such time and place as it may designate, 
 any books, accounts, papers or records kept by such person, in 
 any office or place without this State, or at its option, verified 
 copies in lieu thereof, so that an examination thereof may be 
 made by the commission, or under its direction, or the commission 
 may have such books, accounts, papers or records examined 
 in such place outside this State. 
 
 (g) Any notice or order given or required under this 
 act shall be deemed to have been properly given or served when 
 deposited in the mail, properly stamped and addressed to the 
 person to whom to be given, at his last known address, in time 
 to reach him in due time to act thereon. 
 
 (h) No person shall be excused from testifying or from pro- 
 ducing any books or papers in any hearing, investigation or 
 
 inmiirv Viplrl nnrlpr tViio oft wrhon r\rAor-oA +rv Ar, o/-, 1-.-.T +U« nrs-m^ 
 
43] 81 
 
 mission, upon the ground that the testimony or evidence, books 
 or documents required of him may tend to incriminate him or sub- 
 ject him to penalty or forfeiture, but no person shall be prosecuted, 
 ' punished or subjected to any criminal penalty or forfeiture for 
 or on account of any act, transaction, matter or thing concerning 
 which he shall, under oath, have testified or produced documen- 
 tary evidence: Provided, however, that no person so testifying 
 shall be' exempt from prosecution or punishment for any per- 
 jury committed by him in his testimony. Nothing herein con- 
 tained is intended to give, or shall be construed as in any manner 
 giving, unto any corporation immunity of any kind. 
 
 Sec. 17. Whenever there shall be a conflict between the 
 jurisdiction, powers, duties, orders, rules or regulations of the 
 commission and those of any other State board, State commis- 
 sion, or State administrative officer, a joint conference and 
 hearing shall be had with the governor at such time and place 
 as may be agreed upon, and the governor shall harmonize and 
 decide such conflict, and each of such officers shall abide by 
 such decision and modify his activities, orders, rules or regula- 
 tions in accordance therewith. 
 
 Sec. 18. Nothing contained in this act shall be construed 
 to deprive any municipal officer of any power or jurisdiction 
 over or relative to any place of employment, or the machinery or 
 equipment thereof, provided, that whenver the commission shall, 
 by order, fix standards, safety devices, safeguards, methods or 
 processes for the construction, equipment, arrangement, opera- 
 tion, maintenance or conduction of any room, building, place, 
 machinery or equipment, where or about which labor is employed, 
 the same shall be held to amend and modify any conflicting order 
 of such municipal officer, and thereafter no such municipal 
 officer shall make or enforce any order contrary thereto. 
 
 Sec. 19. (a) Whenever the commission shall adopt any 
 rule or regulation for procedure, or make any other rule, regula- 
 tion or order, or shall by order fix standards and requirements of 
 what is reasonable and adequate for the protection of the life, 
 health, safety and physical and moral welfare of employees, or 
 in particular cases require a particular employer to comply with a 
 special order, in such respect, such employer in his case, and in 
 other cases, any person affected by any such rule, regulation or 
 order, may at any time petition the commission for a rehearing 
 thereon on the ground that the same is unreasonable or unlawful, 
 and the commission shall grant and hold such rehearing, if in its 
 
 43—6 
 
82 [43 
 
 judgment sufficient reason therefor be made to appear. If a 
 rehearing is granted the same shall be determined by the com- 
 mission within 30 days after the same shall be finally submitted. 
 Such petition shall set forth specifically the ground or grounds 
 on which the petitioner considers the matter complained of to be 
 unreasonable or unlawful, and no person shall in any court urge 
 or rely upon any ground not set forth in such petition. A peti- 
 tion for rehearing shall not excuse the petitioner from complying 
 with the rule, regulation, requirement or order complained of 
 unless the commission shall otherwise determine. If upon such 
 rehearing the commission find that the matter complained of is 
 unreasonable or unlawful, it shall change the same to comply 
 with the requirements of the law. Such change shall have the 
 effect of an original order. 
 
 (b) Within thirty days after the petition for rehearing is 
 denied, or if a rehearing is granted, then within 30 days after the 
 rendition of the decision on rehearing, the petitioner may apply 
 to the Circuit Court of the county where the hearing was held, 
 or in which the commission has its principal office, for a writ of 
 certiorari or review (hereinafter referred to as a writ of review) 
 for the purpose of having the reasonableness or lawfulness of the 
 original rule, regulation, requirement or order, or the order or 
 decision on rehearing inquired into and determined. Such writ 
 shall be returnable not later than 30 days after the date of the 
 issuance thereof, and shall direct the commission to certify its 
 record in the case to the court. On the return day the cause shall 
 be heard by the Circuit Court unless for a good cause shown the 
 same be continued. No new or additional evidence may be 
 introduced upon the hearing in the Circuit Court, but the cause 
 shall be heard by the court, without a jury, on the evidence and 
 exhibits introduced before the commission and certified by it. 
 The commission and each party to the action or proceeding shall 
 have the right to appeal in the review proceedings. Upon such 
 hearing the Circuit Court shall enter judgment, either affirming 
 or setting aside the rule, regulation, requirement, decision or order 
 of the commission under review. In case the same is reversed 
 by reason of the commission failing to receive testimony properly 
 proffered, the court shall remand the cause to the commission, 
 with instructions to receive the testimony so proffered and re- 
 jected, and enter a new order based upon the evidence theretofore 
 taken, and such as it is directed to receive. The court may, in 
 
 l + CJ i-|lCl/>r»/i+Ti-VM -rt^l-V^ #^-»-»*-l ry-w-itr n r^ -. ■. n n .-v'U.^a'U 1 ^ -1 1 ' I 1 -. J.l_« 
 
43] 83 
 
 commission for further action. No court of this State, except 
 the Circuit Court, to the extent herein specified, and the 
 Supreme Court on appeals, shall have jurisdiction to, review, 
 reverse, correct or annul any rule, regulation, requirement, or- 
 der or decision of the commission, or to suspend the operation of 
 the rule, regulation, requirement, order or decision of the com- 
 mission, unless during the pendency of such writ the Circuit 
 Court shall) in its discretion, stay or suspend the same. But no 
 such stay or suspend order shall be made otherwise than on three 
 days' notice to the commission, and after a hearing, unless the 
 same shall contain a specific finding, based on evidence, that 
 great and irreparable damage would result to the petitioner, and 
 specifying the nature of the damage. 
 
 (c) In all proceedings under this section the .burden of proof 
 shall be upon the party adverse to the commission to show, by 
 clear and satisfactory evidence, that the rule, regulation, re- 
 quirement, order or decision of the commission complained of is 
 unreasonable or unlawful, as the case may be. 
 
 (d) All actions or proceedings under this or any other act, 
 and all actions and proceedings commenced or prosecuted by or- 
 der of the commission, a'nd all actions and proceedings to which 
 the State or the commission may be parties, and in which any 
 question arises under this or any other act, or under or concerning 
 any order, decision or action of the commission, shall be preferred 
 'over all other civil actions, except election contests, in all the 
 Circuit Courts of the State, and shall be heard and determined 
 in preference to all other civil business pending therein, except 
 election contests, irrespective of position on the docket or 
 calendar. The same preference shall be granted upon applica- 
 tion of the attorney for the commission in any action or proceed- 
 ing in which he may be allowed to intervene. 
 
 (e) The commission, or any party to the writ of review 
 may, after the entry of judgment in the Circuit Court, prose- 
 cute an appeal to the Supreme Court in like manner as appeals 
 in civil cases except as otherwise provided in this act. The orig- 
 inal transcript of the record and testimony and exhibits, certified 
 to by the commission and filed in the Circuit Court, together with 
 a transcript of the proceedings in the Circuit Court, shall consti- 
 tute the record on appeal to the Supreme Court. On the return 
 of the papers to the Supreme Court, such appeal shall be imme- 
 diately placed on the docket of the then pending term by the 
 clerk, and shall be assigned and brought to a hearing in the same 
 
84 [43 
 
 manner as other cases on said docket, but shall have precedence 
 over other civil cases of a different nature pending in said court. 
 No appeal by a party other than the commission, shall be effec- 
 tive unless a cost bond sufficient to secure the payment of all costs . 
 below and on appeal be filed within ten days after the entry of 
 the judgment in the Circuit Court. The Circuit Court may, 
 in its discretion, suspend or stay the operation of its judgment for 
 good cause shown, conditioned upon the diligent prosecution of 
 the appeal. 
 
 Sec. 20. In all collateral actions or proceedings, the rules,- 
 regulations, requirements, orders or decisions of the commission 
 which have become final shall be conclusive. 
 
 Sec. 21. The commission shall charge and collect the fol- 
 lowing fees, to be paid at least once each month, into the State 
 treasury to the credit of the fund for the support of this act. 
 
 For copies of papers and records not required to be 
 certified or otherwise authenticated by the commission, 
 ten cents for each one hundred words and figures; for cer- 
 tified copies of official documents and orders filed in its 
 office, fifteen cents for each one hundred words and figures, 
 and one dollar for every certificate under seal affixed thereto. 
 For each certified copy of annual report of the commission^ 
 one dollar and fifty cents; for certified copies of evidence and 
 proceedings taken before the commission, fifteen cents for 
 each one hundred words and figures; also all other fees and 
 charges allowed or required to be collected under this act or 
 any other law. 
 
 No fees shall be charged or collected for copies of papers, 
 records, or official documents furnished to public officers for use 
 in their official capacity, or for annual reports or other matter 
 published by the commission, in the ordinary course of distri- 
 bution, but the commission may fix reasonable charges for 
 publications issued under its authority. 
 
 Sec. 22. (a) All proceedings of the commission, and all 
 documents and records in its possession, shall be public records. 
 The commission shall make and submit to the governor on or 
 before the second Monday in January in each year a report con- 
 taining a full and complete account of its transactions and pro- 
 ceedings for the preceding fiscal year, together with all sta- 
 tistics and information collected by it, and such other facts. 
 
43] 85 
 
 people of the State, which report shall be laid before the legisla- 
 ture. 
 
 (b) The commission shall furnish its secretary with all of 
 its findings, orders, requirements, rules, regulations and deci- 
 sions, and the secretary shall compile the same for the purpose of 
 publication in a series of compilations to be designated "Reports 
 of the Missouri Industrial Commission," which shall be published 
 in such form and manner as may best be adapted to public infor- 
 mation and use, and such authorized publications shall be com- 
 petent evidence of the findings, orders, requirements, rules, 
 regulations and decisions of the commission therein contained 
 without any further proof or authentication thereof. 
 
 (c) The commission shall conduct a hearing and take 
 testimony relative to any pending legislation with respect to 
 any person or matter within its jurisdiction, if requested to do so 
 by the legislature, or either branch thereof, or by the governor, 
 and shall report its conclusions to the legislature, or to the 
 governor if the request was made by him. The commission may 
 also recommend the enactment of such legislation with respect 
 to any matter within its jurisdiction as it deems wise or nec- 
 essary to the public interest. 
 
 Sec. 23. Any person, corporation, his or its directors, 
 officers or agents, or any other person, who violates any of the 
 provisions of this or any other act for which a penalty has not 
 hereinbefore been specifically provided, shall be deemed guilty 
 of a misdemeanor, and oil conviction thereof shall be punished 
 by a fine of not less than $50.00 nor more than $500.00, or by 
 imprisonment in the county jail for not less than one week and 
 not more than one year, or by both such fine and imprisonment. 
 
 Sec. 24. All of the provisions of this act shall be liberally 
 construed, with a view to the public welfare, and a substantial 
 compliance therewith shall" be sufficient to give effect to all 
 rules, regulations, requirements, awards, orders or decisions of 
 the commission, and they shall not be declared inoperative, 
 illegal or void -for any omission of a technical nature in respect 
 
 thereto. 
 
 Sec. 25. Neither this act nor any provisions thereof, 
 except when specifically so stated, shall apply or be construed 
 to apply to commerce with foreign nations, or commerce among 
 the several States of this Union, except insofar as the same may 
 be permitted under the provisions of the Constitution of the 
 United States and the acts of Congress. 
 
86 [43 
 
 Sec. 26. If any section, subsection, sentence, clause or 
 phrase of this act is for any reason held to be unconstitutional, 
 such decision shall not affect the validity of the remaining 
 portions of this act. The General Assembly hereby declares that 
 it would have passed this act, and each section, subsection, 
 sentence, clause and phrase thereof, irrespective of the fact 
 that any one or more of the same be declared unconstitutional. 
 
 Sec. 27. The provisions of this act and the jurisdiction, 
 powers and duties created thereby shall extend to every em- 
 ployer, and to all parts of the State. 
 
 Sec. 28. It shall be the duty of the prosecuting and circuit 
 attorney, the police department, and all other public officers, 
 in every county and city in this State, to aid and assist the 
 commission in the enforcement of this act and in the prosecution 
 of violations thereof. 
 
 Sec. 29. All acts, or parts of acts, in conflict or inconsistent 
 therewith are to that extent hereby repealed. The pr'ovisions 
 of this act are not intended to repeal any law now in force, 
 unless in direct conflict therewith, but are intended to be sup- 
 plemental to such laws. 
 
 Sec. 30. There being no adequate provisions of law for 
 the health and safety of employees and the regulation of the 
 subjects and the performance of the jurisdiction, powers and 
 duties imposed by this act, and such a law being necessary for 
 the immediate preservation of the public peace, health and 
 safety, creates an emergency within the meaning of the constitu- 
 tion and this act shall take effect on April 15, 1915. 
 
 AN ACT 
 
 To provide mutual insurance for employers by providing 
 for the organization of corporations on the mutual plan, their 
 powers and duties and the regulation of their affairs, the powers 
 and duties of their directors and officers, the rights and liabilities 
 of its members, and the punishments for violations of the pro- 
 visions thereof, and by permitting foreign mutual companies to 
 be licensed to do business in this State upon certain terms and 
 conditions, with an emergency clause. 
 
43] 87 
 
 Be it enacted by the General Assembly of the State of Missouri, 
 as follows: 
 
 Section 1. Any five or more individuals, partnerships, as- 
 sociations or corporations, employing in the aggregate five 
 hundred or more employees in this State, who shall have asso- 
 ciated themselves together by articles of agreement in writing, 
 by complying with the provisions of this act, may become, 
 together with others, who may become associated with them or 
 their successors, a body corporate for the purpose of insuring 
 the members of such company on the mutual plan against 
 liability for injury to the person or property of their employees, 
 or the general public, or for death caused thereby, in the manner 
 and as hereinafter providedi 
 
 Sec. 2. The articles of agreement shall set out: 
 
 First. The name of the company, which shall indicate the 
 nature of the business, and shall contain the word "mutual," 
 and shall end with the word "company," and shall not be the 
 name of any mutual company theretofore authorized for similar 
 purposes in this State or known by the Superintendent of the 
 Insurance Department to be used by any corporation or associa- 
 tion for similar purposes organized or doing business in the 
 United States, or an imitation of such name. 
 
 Second. The name of the city or town and county in this 
 State in which the principal office of the company is to be lo- 
 cated. 
 
 Third. The amount of cash premiums actually paid on 
 insurance applied for which premiums shall not be less than 
 twenty-five thousand dollars, and that the same have been 
 bona fide subscribed and the whole thereof paid in actual cash 
 and is in the custody of the persons named as the first board 
 of directors. 
 
 Fourth. The name, business, address, and number of em- 
 ployees of each subscriber and the amount of premiums sub- 
 scribed and paid by such member. 
 
 Fifth. The number of directors, which shall be not less 
 than three nor more than twenty-five, and the names of those 
 agreed upon for the first year. 
 
 Sixth. The number of years the company is to continue, 
 which shall not be more than fifty years. 
 
 Seventh. That the purposes of the company shall be to 
 insure its members on the mutual plan against liability for injury 
 to the property or person of their employees, or the general pub- 
 
88 [43 
 
 lie, or for death caused thereby, including liability for all injuries 
 to person or property and all injuries caused by motor or other 
 vehicles, animals or any other instrumentality used in the 
 business of any member, whether the liability be at common law 
 or under any workmen's compensation law or under any other 
 law or statute, and to do all things which may be necessary to 
 carry out such purposes. 
 
 Eighth. That any employer of labor in this State or else- 
 where whose risk shall be satisfactory, may become a member 
 by taking out a policy of insurance in such company, which 
 membership shall continue during the life of the policy. 
 
 Sec. 3. The articles of agreement shall be signed, ac- 
 knowledged and sworn to in triplicate by all the parties thereto, 
 and in case of partnerships, associations, and corporations by 
 their principal oflTicer or agent, and the same, together with a 
 copy of the by-laws shall be filed with the Superintendent of 
 the Insurance Department. If the superintendent approve 
 of all the same and is satisfied that the requirements of the law 
 have been complied with, he shall affix to such triplicates of the 
 articles of agreement a certificate that the parties to the same 
 have complied with all of the requirements of the law, for which 
 he shall receive a fee of ten dollars, and shall return one of such 
 triplicates to the parties and file the other with the Secretary of 
 State. Upon the filing thereof and the payment of a license tax 
 of fifty dollars and the other fees required of corporations, the 
 Secretary of State shall give to the parties a certificate that the 
 corporation is duly organized, which shall set forth the amount 
 of its initial premiums paid, the period of its existence, and its 
 permanent place of location, and such certificate shall be taken 
 by all of the courts, of this State as evidence of the corporate 
 existence of such company. All amendments of such articles of 
 agreement and all certificates thereof shall likewise be filed and 
 certified, and the same together with the original articles shall 
 be public records. 
 
 Sec. 4. In addition to the powers in this act specified, 
 such corporation shall have power, 
 
 1. To have succession by its name for the period limitied 
 in its articles of agreement. 
 
 2. To sue and be sued, complain and defend in any court 
 of law or equity in and under its name. 
 
 3. To make and use a common seal and alter the same at 
 its pleasure. 
 
43] 89 
 
 4. To hold, purchase, mortgage or otherwise convey such 
 real and personal estate as is authorized by the general provi- 
 sions of the law relating to insurance companies. 
 
 5. To appoint such subordinate officers and agents as its 
 business may require, and to pay them suitable compensation. 
 
 6. To make by-laws, not inconsistent with this or any 
 other law, for the management of its property and the regulation 
 of its affairs, but no by-law shall be valid until approved by the 
 Superintendent of the Insurance Department. 
 
 7. By a vote of its members cast as in its by-laws provided 
 to change its name, the location of its principle office, the num- 
 ber of its directors, the amount of its initial reserve fund, without 
 in anywise affecting its rights, privileges or liabilities, and to 
 terminate the existence thereof, such changes not to take effect 
 until certified copies thereof have been filed with, approved and 
 certified by the Superintendent of the Insurance Department, 
 and filed with the Secretary of State in like manner as the orig- 
 inal articles of agreement. 
 
 Sec. 5. Annual meetings of the members of such company 
 shall be held for the election of directors and the transac- 
 tion of other business, at such time, upon such notice and in 
 such manner as the by-laws may provide. At all meetings a 
 majority of the votes cast thereon shall be necessary to the 
 validity of any action and all voting shall be by ballot. Each 
 member shall be entitled to one vote and one additional vote for 
 each $100.00 of estimated annual premium paid on his policy 
 or policies. In all elections for directors each member shall 
 have the right to cast as many votes in the aggregate as shall 
 equal the number of votes to which he is entitled multiplied by 
 the number of directors to be elected a't such election; and each 
 member may cast the whole number of such votes, either in per- 
 son or by proxy, for one candidate or distribute such votes among 
 two or more candidates; and the directors shall not be elected 
 in any other manner. 
 
 Sec. 6. Directors shall hold office for such term, not ex- 
 ceeding three years, and under such conditions as may be pro- 
 vided in the by-laws, but not more than two of such directors 
 shall be persons who are not members of such company. They 
 shall hold meetings at such times as may be fixed in the by-laws, 
 and shall keep a record of their proceedings. A majority of the 
 directors shall constitute a quorum for the transaction of business, 
 and the affairs of such company shall be conducted by the direc- 
 
90 [43 
 
 tors, who shall receive such compensation as may be provided 
 in the by-laws. The directors shall elect one of their number 
 president, who shall hold office during the pleasure of the direc- 
 tors and who shall preside at all meetings of the directors and 
 members and be president of the company. The directors shall 
 elect such other officers as may be provided in the by-laws, and 
 do such things as may be necessary properly to conduct the busi- 
 ness of the company. Except as otherwise provided in this act 
 the powers and duties of the directors and all officers shall be as 
 provided in the by-laws. 
 
 Sec. 7. The directors shall classify all risks and fix the 
 premium rates for each class and shall also adopt and enforce a 
 proper merit rating schedule. Liability for injuries to em- 
 ployees or the general public may be insured against in the same 
 or separate policies. The rates charged shall be fair, reasonable 
 and adequate, with due allowances for merit rating, and all 
 risks of the same kind and degree of hazard shall be written at 
 the same rate. The general form and contents of each policy 
 shall be in accordance with such rules as may be prescribed by 
 the Superintendent of the Insurance Department, and no policy 
 shall be written until the premium rates for each class and the 
 merit rating schedule have been approved by the Superintendent 
 of the Insurance Department, who may withdraw his approval 
 of the general form and contents of any policy or the rate for 
 any class or of any item of the merit rating schedule, at any time 
 upon fifteen days' notice. 
 
 Sec. 8. The directors may make and enforce reasonable 
 rules and regulations, not in conflict with the laws of this State, 
 for the prevention of injuries, and for tliis purpose the inspectors 
 of the company shall have free access to the premises of all mem- 
 bers. The policy of any member may be cancelled on thirty days' 
 notice for any failure to provide . suitable safety appliances as 
 provided by law or as required by the directors for all other 
 similar risks. Any person aggrieved by any such rule, regulation 
 or action, may present his complaint to the Missouri Industrial 
 Commission, which may annul, amend or affirm such rule, 
 regulation or action after a hearing on notice to the company. 
 
 Sec. 9. Such company shall provide and maintain such 
 reserves as shall from time to time be required by the Superin- 
 tendent of the Insurance Department, which shall be adequate 
 and sufficient to meet and discharge all fixed and contingent 
 policy liabilities. Such reserves and the surplus or other funds, 
 
43] 91 
 
 if any, shall be invested in such securities or methods of invest- 
 ment as shall be approved by said superintendent. 
 
 Sec. 10. All premiums shall be paid in cash and policies 
 may be written with a contingent liability of the policy-holder 
 for not less than one nor rnore than five additional premiums, as 
 the Superintendent of the Insurance Department shall from 
 time to time determine, the maximum of which shall be clearly 
 expressed in each policy. But no such company shall write any 
 policy without such contingent liability unless it shall first be 
 thereto authorized by the said superintendent and in addition 
 to such other reserves as may be required, shall have a cash 
 surplus of not less than 50 per cent of its earned premiums for 
 the preceding year, nor less in amount than twenty-five thou- 
 sand dollars. 
 
 Sec. 11. Such company may reinsure against all or part of 
 its liability with any insurance carrier approved by the Super- 
 intendent of the Insurance Department. 
 
 Sec. 12. Any public or private corporation, board or as- 
 sociation, and any estate in the hands of any receiver, adminis- 
 trator, executor, guardian, or other trustee in this State or else- 
 where, may become a member of such company and exercise and 
 be entitled to all the rights and subject to all liabilities of mem- 
 bers by taking out a policy of insurance in such company, and 
 the person acting in behalf thereof shall not be personally liable. 
 
 Sec. 13. The directors of any such company which is riot 
 possessed of assets in excess of the required reserves and all other 
 habilities, shall make an assessment upon each of the persons to 
 whom it shall have issued contingent liability policies, for an 
 amount sufficient to make good any deficiency, and such assess- 
 ments as shall be necessary shall be made against each such 
 member in proportion to the contingent liability expressed in 
 his policy. If the directors fail promptly to make and collect 
 such assessments the Superintendent of the Insurance Depart- 
 ment may make and collect the same. The said Superintendent 
 may, by written order, suspend the assessment or other proceed- 
 ings to restore such assets during the time fixed in such order. 
 
 Sec. 14. Any director, officer or member of any such corpo- 
 ration, or any other person, may advance to the corporation any 
 sum or sums of money necessary for the purposes of its business 
 or to enable it to comply with any requirements of the law, and 
 when so agreed such sums and the interest thereon shall not be a 
 liability of the company or a claim against its assets and shall be 
 
92 [43 
 
 repaid only out of the surplus earnings of the company. No 
 commission or promotion expenses shall be paid in connection 
 with the organization of any such company or the advance of 
 any such money to the company, and the amount- of such 
 advances shall be reported in each annual statement. 
 
 Sec. 15. After the payment of all expenses, losses and other 
 liabilities and providing for and maintaining the required re- 
 serves, the directors may make refunds to the members under the 
 following conditions: 
 
 1. All sums advanced to the company under any agree- 
 ment that the same should not be a liability of the company or a 
 claim against its assets, with interest thereon, shall be first re- 
 paid to the parties advancing the same. 
 
 2. The directors shall next set aside any amounts which 
 may be provided by the by-laws as a surplus or other fund, and 
 
 3. The balance, if any, shall be distributed as refunds to 
 the members in proportion to the amount of earned premiums 
 paid by them on the policy in force at the time the refund is de- 
 clared. 
 
 Any director knowingly voting to pay or paying any divi- 
 dend or refund in violation of the provisions of this act shall be 
 deemed guilty of a misdemeanor, and on conviction thereof, 
 shall be punished by imprisonment in the county jail for not 
 less than one week nor more than one year. 
 
 Sec. 16. The Superintendent of the Insurance Department 
 or the Missouri Industrial Commission may at any time examine 
 the books, records, assets and affairs of such company, and the 
 said superintendent may revoke or suspend its license to do busi- 
 ness for any obstruction of or failure to permit such examination, 
 or for the violation of this or any other law of this State or lawful 
 order of the said Superintendent. It shall be the duty of the 
 president, or vice-president, and secretary of the company, 
 under such rules and regulations and in such form and detail as 
 the said superintendent may require to file with the said superin- 
 tendent, on or before the first day of January of each year, or 
 within thirty days' thereafter, a full report verified by their affi- 
 davits, containing such information as the said superintendent 
 may require concerning its affairs for the preceding year, and 
 from time to time to report under oath to the said superinten- 
 dent or the Missouri Industrial Commission such information 
 concerning its affairs as either may require. 
 
43] 93 
 
 Sec. 17. Any such company may be dissolved by two-thirds 
 of the votes of its members at a meeting called for the purpose, 
 a copy of the minutes of which meeting verified by the aflTidavit 
 of the president shall be filed with the Superintendent of the 
 Insurance Department and the Secretary of State. Upon the 
 fiUng thereof the title to all of the assets of the company shall 
 immediately vest in the superintendent, who shall proceed to 
 take possession of the same and of all the books and records of 
 the company and out of the proceeds thereof pay all of the costs 
 of such administration, including a compensation of 3 per cent 
 to himself, pay or provide for all its liabilities, pro rata if there be 
 not sufficient assets to pay in full, and distribute the balance in 
 the following manner: 
 
 1. Out of such balance he shall first pay all sums advanced 
 to the company under any agreement that the same shall not be 
 a liability of the company or a claim against its assets, with 
 interest thereon. 
 
 2. The balance, if any, shall be paid to the members in 
 proportion to the amount of earned premiums paid by them on 
 the policy in force at the time the dissolution is voted. 
 
 Sec. 18. If it shall appear to the Superintendent of the 
 Insurance Department from any report of such company, or 
 upon any examination made by him or by any person appointed 
 by him, or from any knowledge or information in his possession, 
 from whatever source obtained, that any such company is con- 
 ducting its business in an unsafe manner, or that the assets of 
 such company are insufficient to justify the continuance of 
 business of such company, he shall communicate the facts to the 
 officers or directors of such company. Such officers or directors, 
 may in the discretion of the superintendent, be allowed a rea- 
 sonable time within which to correct the matter complained of. 
 And if the matter complained of is not corrected to the satis- 
 faction of the superintendent within such time, or if it shall appear 
 to the superintendent that the company is insolvent or that it is 
 unsafe or inexpedient for such company to continue to transact 
 business, the superintendent shall institute proceedings in the 
 circuit court of the county wherein such company has its principal 
 office in the name of the State at his relation against such com- 
 pany to enjoin it from the further prosecution of its business tem- 
 porarily or perpetually, or for such injunction and the dissolution 
 of such company and the settling and winding up of its affairs, 
 or for any and all of such remedies combined, as the superintend- 
 
94 [43 
 
 ent shall deem necessary. Such action shall be conducted by 
 the attorney-general of the State and his actual expenses shall 
 be paid out of the assets of the company. The jurisdiction of the 
 circuit court and the processes, pleadings and proceedings had 
 in any such case shall be the same as are provided by law for the 
 winding up and dissolution of insurance companies, so far as the 
 same are applicable thereto, save that after the payment of all 
 lawful taxes and debts due the State and the United States and 
 the counties and municipalities of this State, distribution shall 
 be made in the manner herein provided for distribution on volun- 
 tary dissolution. 
 
 Sec. 19. Any mutual company organized under the laws of 
 any other State or country, and authorized to insure against the 
 liability for which companies organized under this act may insure, 
 and solvent and having the same reserves as are required of com- 
 panies organized under this act, or reserves or other funds 
 equivalent thereto, may be licensed to carry on such business in 
 this State and any employer of this State who may become a 
 member of a company organized" under this act may insure 
 with such foreign company, if the said company shall comply, 
 with the following requirements: 
 
 1. Said company shall file with the Superintendent of the 
 Insurance Department two duly certified copies of its Articles of 
 Association and Charter, and a duly certified copy of its by-laws, 
 and shall furnish the said superintendent such other information 
 concerning its affairs as he may require. The superintendent 
 shall make such investigation as may be necessary and if all 
 the requirements of the laws have been complied with and the 
 company is such and in such condition that it may be licensed to 
 do business in this State, he shall affix to a copy of the articles 
 and charter his certificate of approval, for which he shall receive 
 a fee of ten dollars, and shall file the same with the Secretary of 
 State, who upon payment of a license tax of fifty dollars and the 
 other fees required of corporations, shall issue to such company 
 a certificate that it is licensed to do such business in this State. 
 
 2. Said company shall also comply with and be subject to 
 all of the other provisions of law relating to foreign insurance 
 companies insuring against the same liabilities. 
 
 The said license may be revoked or suspended at any time 
 by the superintendent for any failure of the said company to 
 conform to the requirements of the law, or whenever it shall 
 appear that it is insolvent or not maintaining sufficient reserves, 
 
43] 95 
 
 and the business of such foreign company shall be subject to 
 the same supervision and regulations as that of companies or- 
 ganized under this act. 
 
 Sec. 20. The fact that our laws contain no provisions for 
 the organization of such mutual companies, and there being an 
 immediate necessity for such companies, creates an emergency 
 within the meaning of the constitution, and this act shall take 
 effect from and after the date of its approval. 
 
 AN ACT 
 
 To provide for the collection of a tax on all premiums for 
 insuring employers in this State against liability for personal 
 injuries to their employees, for the support of the Missouri 
 Industrial Commission, and prescribing the punishments for 
 violations of the provisions thereof, repealing all acts or parts 
 of acts inconsistent therewith, with an emergency clause. 
 
 Be it enacted by the General Assembly of the State of Missouri, as 
 follows: 
 
 Section 1. Every person, partnership, association, corpora- 
 tion, whether organized under the laws ■ of this or any other 
 State or country, company, mutual company, the parties to 
 any interindemnity contract plan or scheme, and every other 
 insurance carrier, insuring employers in this State against lia- 
 bihty for personal injuries to their employees, or for death 
 caused thereby, whether under the workmen's compensation act,, 
 at common law, or under any statute of this State or of the 
 , United States, shall, as hereinafter provided, annually pay tax 
 upon the premiums received, whether in cash or notes, in this 
 State, or on account of business done in this State, for such 
 insurance in this State at the rate of 5 per cent per annum in lieu 
 of all other taxes on such premiums, which amount of taxes 
 shall be assessed and collected as hereinafter provided: Provided 
 that such insurance carriers shall be credited with canceled or 
 return premiums, actually paid during the year in this State, 
 and with premiums on reinsurance with companies authorized 
 and licensed to transact business in Missouri, which reinsurance 
 shall be reported by the company reinsuring such business; but 
 no credit shall be allowed for reinsurance in companies not 
 Ucensed to transact business in Missouri. 
 
96 [43 
 
 Sec. 2. Every such insurance carrier shall on or before 
 the first day of February in each year make a return verified 
 by the affidavit of its president and secretary, or other chief 
 officers or agents, to the Superintendent of the Insurance De- 
 partment, stating the amount of all such gross premiums and 
 credits during the year ending on the 31st of December next 
 preceding. Upon receipt of such returns, the Superintendent 
 of the Insurance Department shall verify the same and assess 
 the tax upon the various insurance carriers on the basis and 
 at the rate provided in Section 1 of this act, and make a schedule 
 thereof, duplicate copies of which, properly certified by said 
 superintendent, shall be filed in the offices of the State Auditor 
 and State Treasurer on or before the first day of March in each 
 year. Immediately thereafter the Superintendent of the In- 
 surance Department shall notify the insurance carriers of the 
 amount of taxes respectively due from them, and such taxes shall 
 be paid into the State treasury on or before the first day of April 
 next ensuing. If not so paid, the State Treasurer shall certify 
 the fact to the Superintendent of the Insurance Department, 
 who shall thereafter suspend such delinquent carriers of in- 
 surance from the further transaction of business in this State 
 until such taxes shall be paid. Upon receiving said money the 
 State Treasurer shall place the whole thereof to the credit of 
 the fund for the support of the Missouri Industrial Commission. 
 
 Sec. 3. If any such insurance carrier shall fail or refuse 
 to make the return required by this act, the said superintendent 
 shall assess the tax against such company at the rate herein pro- 
 vided for, on such amount of premiums as he shall deem just, 
 and the proceedings thereon shall be the same as if the return 
 had been made. 
 
 Sec. 4. If any such insurance carrier shall withdraw from 
 business in this State before the annual tax shall fall due ac- 
 cording to the provisions of this act, or shall fail or neglect to 
 pay the tax imposed herein, the Superintendent of the Insurance 
 Department shall at once proceed to collect the same, and he is 
 hereby empowered and authorized to employ such legal process 
 as may be necessary for that purpose and when so collected he 
 shall pay the same into the State treasury. The suit may be 
 brought by the Superintendent of the Insurance Department in 
 his own name, in any court of this State having jurisdiction; 
 reasonable attorneys' fees may be taxed as costs therein, and 
 process may issue to any county of the State, and may be served 
 
43] 97 
 
 as in civil actions, or in cases of unincorporated associations, 
 partnerships, interindemnity contract or other plan or scheme, 
 upon the principal agent of the parties thereto. 
 
 Sec. 5. Any person or persons who shall in this State act 
 or assume to act as agent for any such insurance carrier whose 
 authority to do business in this State has been suspended under 
 this act, while such suspension remains in force, or shall neglect 
 or refuse to comply with any of the provisions of this act obli- 
 gatory upon such person or party, or who shall wilfully make a 
 false or fraudulent statement of the business or condition of any 
 such insurance carrier, shall be deemed guilty of a misdemeanor 
 and shall be punished by a fine of not less than $500.00 nor 
 more than $5,000.00, or by imprisonment in the county jail 
 for not less than one week nor more than one year, or by both 
 such fine and imprisonment. 
 
 Sec. 6. Whenever by this act any officer is required to give 
 any notice, the same may be given by mailing the same, postage 
 prepaid, addressed to the principal office of the insurance carrier 
 or its agent in this State, or to its home office or to the secretary, 
 general. agent or chief officer thereof in the United States. 
 
 Sec. 7. Any insurance carrier, foreign or domestic, liable 
 to pay a tax upon its premiums under this act shall not be liable 
 to pay any other or further tax upon siich premiums under any 
 other law of this State, and the provisions of this act shall also 
 extend and apply to all premiums received during any part of 
 the year 1915. 
 
 Sec. 8. All acts or parts of acts in conflict or inconsistent 
 herewith are to that extent hereby repealed. 
 
 Sec. 9. The necessity of creating a fund for the support of 
 the Missouri Industrial Commission creates an emergency within 
 the meaning of the Constitution, and this act shall take effect from 
 and after the date of its approval. 
 
 COMPARATIVE SCHEDULE OF BENEFITS. 
 
 Most of the following table is a chart which the author, Mr. 
 Harrison Law of Nutley, New Jersey, has kindly consented 
 may be published by the commission and to which the com- 
 mission has made minor corrections and added the provisions 
 of the new Massachusetts, Louisiana and proposed Missouri 
 laws. 
 
 i 43 — 7 
 
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102 [43 
 
 EXPLANATORY NOTES. 
 
 Amounts following time ($5-15) denote $5 minimum and $15 maximum wage per week. 
 Where no maximum amount or time noted, for life on basis of salary. 
 Amounts standing alone or after time denote maximum. 
 ■ Letters, prefixing, following or standing alone, refer to foot notes below. 
 W — Weeks. 
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 AWE — Annual weekly earnings. 
 DE — Daily earnings. 
 PE — On same basis as previous contribution bore to earnings. 
 
 a — Within six months. 
 
 b — One-half difference between present and past earning capacity. 
 
 c — And 40% thereafter. 
 
 d — Wherepartial but permanent, 10% disability; 65% AWE for 40W; 20% for SOW; 30%; 
 120W; 40%, 160W; 50%, 200W; 60%, 240W; 70%, 240W and thereafter 10% for life; 
 80%, 240W and 20%; 90%, 240 W and 30%. 
 
 e — Upon approval of Court. 
 
 f — Upon approval of Commission. 
 
 g — Must be paid in addition to compensation. 
 
 h — Then 8% of AE (or $3500) for life, maximum $10 month. 
 
 1 — If deceased a minor two-thirds full death benefit. 
 
 3 — Dependent, not resident of United States or Canada, limit $750. 
 
 k — By agreement. 
 
 1 — If disability over 8 weeks, then compensation from date of injiu-y. 
 
 m — If disabiUty over 300 weeks, then thereafter 40 % AE for life, minimum $4, maximum $8. 
 n — Death compensation computed, 1 dependent 35 % WE ; 2, 40 % ; 3, 45 % ; 4, 50 % ; 5, 55 % ; 
 6, 60%. 
 
 o — Two years lump sum upon remarriage. 
 
 p — New York and Oregon payable to Commissioners as directed. 
 
 q — Two-thirds difference in earning capacity. 
 
 r — Upon remarriage lump sum of $300. 
 
 s — Relative proportion allowed for total disability, as present incomes bears to past income. 
 
 t — Upon remarriage lump sum of $240. 
 
 u — Subject to decision of department. 
 
 V — Loss of member maximum 156 weeks. 
 
 w — If four weeks then compensation from date of injury. 
 
 X — Plus disabiUty indemnity, but must not exceed six times AE, annual wages, minimum 
 $375, maximum $750. 
 
 y — If nurse required then full wages for 90 days. 
 
 z — Disfigurement of face or head $750 on approval of Commission, 
 aa — Maximum $3000. 
 
 ab — Widow and 1 child 40 % ; 2 or 3 children 50 % ; 4 or more 60 %. 
 
 ac — Widow remarrying without children, in lump sum one-hatf balance then unpaid. To 
 dependent husband, no children, 25%; parent wholly dependent, 25%; two, 35%; 
 dependent brother, sister or grandparent, 25%; two 30%. To cease at death or re- 
 marriage, 
 ad — Until death or remarriage, 
 ae — Married man $5 more, 
 af — Following proportions for each joint. 
 
 ag — If physically incapacitated longer on approval of Commission, 
 ah — Maximum in case of minor $2,000. 
 aj — If estate left, no liability, 
 ak — Increased to 15 % upon death of widow, 
 al — And longer if approved by the Board, 
 am — If disability over — weeks then from date of injury. 
 
 TABLE OF COMPENSATION. 
 
 Illustrating Permanent Disa'bilities Under the Proposed 
 Missouri Law. 
 
 The following table shows the compensation payable under 
 the proposed Missouri compensation law for a few occupations, 
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 Rating Permanent Disabilities prepared by the California In- 
 dustrial Accident Commission, the percentage of disability being 
 obtained from the latter schedule by adding to the first entry 
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108 [43 
 
 ADDRESS OF HON. J. D. BECK, 
 
 Of the Industrial Commission of Wisconsin Before the 
 
 1914 Convention of the Missouri State 
 
 Federation of Labor. 
 
 In the work of accident prevention it is, first of all, nec- 
 essary to know the facts. It is necessary to know the approxi- 
 mate number of accidents; how and on what they occur; the 
 amount of time and wages lost as a result of accidents; the 
 amount of damages and what it costs employes to secure them 
 under liability laws; the amount it costs the employer to pay 
 compensation, and to protect himself against liability for acci- 
 dents; the amount it costs the State to maintain courts to try 
 damage cases arising out of accidents, to say nothing of the 
 amount it costs to maintain institutions for the support of de- 
 pendency resulting therefrom. With this information at hand 
 the question then arises. "What can be and what has been done 
 to prevent accidents and eliminate the enormous waste occa- 
 sioned thereby?" 
 
 That this information has been woefully lacking is proven 
 by the laws, which were calculated to prevent accidents, in 
 nearly every State in the Union prior to the year 1911. 
 
 However, those laws were, no doubt, honest attempts to 
 solve the problem. When set-screws, for instance, had killed 
 or crippled enough men to arrest the attention of a law-making 
 body, a law would be enacted requiring all set-screws to be 
 securely guarded. When fly-wheels had caused a sufficient 
 number of injuries to attract legislative attention they would-be 
 added to the list. And so with "belts," "pulleys," "tumbling 
 rods" and the hke, until at last, despairing in the attempt to 
 keep pace with the danger points occasioned by our modern 
 industrial development, the legislature would add the phrase 
 "all other dangerous machinery," thinking no doubt, that would 
 settle the question for all time. But when a workman who had 
 his h&nd cut oif by a buzz-saw, sued for damages because the 
 saw was not guarded as pro-^ided by the phrase "all other dan- 
 gerous machinery," he found that this phrase was interpreted 
 by the courts to mean "all dangerous machines similar to those 
 enumerated in the law" and that a buzz-saw is not similar to a 
 
43] 109 
 
 set-screw, tumbling rod, belt or pulley; therefore his case had no 
 standing in court. 
 
 Other legislatures have provided that all machines or places 
 which, in the opinion of the factory inspector are dangerous, 
 shall be guarded. But courts have refused to uphold such 
 laws chiefly on the ground that they lodge too much authority 
 in a single individual who may or may not know what is dan- 
 gerous. 
 
 Defective as such provisions of law are, I believe the clauses 
 providing for their enforcement are still more defective. These 
 usually provide that the inspector shall visit a factory, pick out 
 the points not in compliance with the law, serve a notice on the 
 owner to guard his machinery within thirty, sixty or ninety days, 
 as the case may be, or a prosecution will follow. At some 
 future time, perhaps, the inspector will again visit the establish- 
 ment, and if he finds his orders have not been complied with, 
 he will do one of four things; he will compromise with the em- 
 ployer, letting him off on part of the work, if he will do the 
 remainder; or he will pass the whole thing up and issue a clean 
 bill of health; or he will issue a new set of orders, or take the 
 employer into court. Can you imagine a more fruitful field for 
 breeding contempt for law and disrespect for a State ofiicial? 
 You may say, "should the inspector find his orders not complied 
 with he should prosecute," but I question, in nine cases out of 
 ten, whether that is the best way. Think of a housewife thrash- 
 ing a servant for accidentally breaking a sugar bowl and then 
 setting her to work at washing dishes. I'd break every dish in 
 the house in less than five minutes, and so would you. 
 
 Now what has been the result? Years ago congress passed 
 safety laws applying to railroads. It was made the duty of 
 the Interstate Commerce Commission to enforce them, yet the 
 increase in accidents has gone steadily forward unabated. I 
 beheve there are some thirty or thirty-five States having safety 
 laws with various systems of factory inspection, and I believe 
 most of the States have done the best they could to enforce 
 them, yet investigations made by the Bureau of Labor at Wash- 
 ington, accident reports on file in the offices of casualty insur- 
 ance companies throughout the country, and the records of courts 
 and manufacturing establishments, all testify that the number 
 of accidents, like a snowball rolling down hill, has been in- 
 creasing at an alarming rate. In Wisconsin, during the period 
 to which I am referring, I believe we had about as good safety 
 
no [43 
 
 laws as any State. Prosecution for violation of these laws in- 
 creased to about one per day, or 365 in the year 1907. Yet the 
 accident roll increased in about the same ratio. 
 
 This was the situation which led the Bureau of Labor in 
 Wisconsin to begin an inquiry in 1907 into "Employers' Liability 
 and Workmen's Compensation," with a view to finding a more 
 effective way of attacking the problem. That investigation 
 showed that the number of industrial accidents, under a some- 
 what imperfect system of accident reporting, had increased to 
 over 14,000 a year, that the time lost by working people as a 
 result of these accidents, equalled that of a thousand men for 
 an entire year; that nearly 300 of these accidents were fatal; " 
 that the wages lost on account of them amounted to $650,000; 
 that the employers were paying over a million dollars to liability 
 insurance companies for protection against accidents and main- 
 taining legal departments to fight their cases; that only about 
 one out of every ten injured employes was able to recover; that 
 the total amount recovered did not exceed $300,000, and in many 
 cases it took from two to twelve years to see-saw these cases 
 back and forth through the courts; that only about one-fourth of 
 this $300,000 finally reached the pockets of the injured workman 
 or of his family, the remainder going to doctors, lawyers, etc.; 
 that it was costing the State from one-half million to three- 
 quarters of a million dollars to maintain courts to try damage 
 cases arising out of accidents and maintain institutions for the 
 care of those made dependent because of them. 
 
 This report was taken up by the legislature of 1909. This 
 body appointed a committee to make a further study of the 
 subject and report a bill for the session of 1911. This com- 
 mittee entered immediately upon its work. It drafted a bill 
 upon the basis of the Bureau of Labor's report and started out 
 holding hearings in every industrial center in the State. I believe 
 this is a most important procedure to insure the success of any 
 legislature which attempts to change any part of our system of 
 government or to interfere with long established customs of a 
 people. In the first place it is the only way a legislature can get 
 the necessary information upon which to base a just law, and 
 second, it is the best and surest way of preparing a people for 
 accepting such a law when it comes. 
 
 The result was that in the early part of 1911 the legislature 
 passed the workmens' compensation act, removing the defenses 
 of "fellow servant" and "assumption of risk" (later abolishing 
 
43] 111 
 
 the defense "contributory negligence"), and assured the in- 
 jured workman 65 per cent of his loss of wage in addition to 
 his doctor bills, hospital fees, medical attendance and surgical 
 appliances, thus placing the responsibility for accidents more di- 
 rectly than ever before upon the shoulders of the employer. 
 At the same time the legislature provided for a complete sys- 
 tem of accident reporting. 
 
 Simultaneously with these laws the legislature passed our 
 present safety act and repealed the old ones. Instead of .enum- 
 erating the dangerous machines or places that must be guarded, 
 or instead of lodging the power of determining danger points 
 with the inspector, it simply provides that "all places of em- 
 ployment shall be made safe as the nature of the business will 
 reasonably permit." It is then made the duty of the Industrial 
 Commission ^ to determine what places of employment are not 
 safe, and to issue such orders- as may be necessary to make them 
 safe. For the most effective work in accident prevention, I 
 believe these three laws are indispensable. 
 
 The first thing the safety division of the Industrial Com- 
 mission did after being given these laws to administer was to 
 secure the services of a man who had done the best work in acci- 
 dent prevention for some private company which represented 
 the widest possible range of industries. The second step was 
 to collect three exhibits composed of about 1200 photographs and 
 blue prints of safety devices in use by the best companies through- 
 out the country. One of these was placed permanently in 
 Milwaukee where about two-fifths of our -factory interests are 
 located, and the other two were started out over the State, each 
 one remaining in each of the several industrial centers of the 
 State for a week or two at a time. Each exhibit was accom- 
 panied by two or three deputies who visited every industrial 
 establishment in the community and invited employers, foremen, 
 workmen and citizens to look the exhibition over. At some 
 'time during the stay of these exhibits in a town two members of 
 the Industrial Commission would visit the place and one would 
 give a lecture on "Workmen's compensation" and the other on 
 "Accidents and accident prevention." These lectures would 
 be attended by employers and employes of the community. 
 
 The next step was an inquiry into places of employment 
 to determine what was unsafe and to formulate the necessary 
 orders for securing safety in those places. For this purpose we 
 invited the State Federation of Labor to appoint two men, the 
 
112 [43 
 
 Milwaukee Manufacturers' Association to appoint two and the 
 State Manufacturers' Association two, to serve on what we call 
 our safety committee. The Industrial Commission appointed 
 two men who had done the best safety work in the State, to repre- 
 sent the public on the committee, and it went to work, and 
 its services did not cost the State a cent. I may say that we 
 experienced some difficulty in getting the State Manufacturers' 
 Association to recommend its men. The president . of that 
 organization had for years been a lobbyist against nearly every 
 piece of proposed safety legislation in the state, and as. I now 
 look back upon it, I do not know as I blame him. It finally 
 developed that he wanted to serve on the committee, and as 
 it afterwards appeared, "to see that nothing was done," so he, 
 with another of his own choosing, were appointed and the 
 committee began its work. 
 
 This committee proceeded on the same theory followedby 
 the legislative committee in drafting the workmen's compensa- 
 tion act, namely, drafting tentative rules and holding hearings, 
 and it had the same dual effect of, first, procuring the 
 information necessary for drafting reasonable and just orders, 
 and second, of educating the employers to the necessity therefor 
 and how to put them into effect. 
 
 After this committee had completed its general orders on 
 safety, it appointed a sub-committee of expert elevator men to 
 study elevator accidents and draft rules for making elevators 
 safe. It also appointed a sub-committee on laundries to re- 
 commend orders covering that industry; it appointed another 
 committee of experts on sanitation, ventilation and lighting 
 to draft rules on that subject, until we now have nearly 200 
 orders in force. All these committees were made up of em- 
 ployers and employees. 
 
 But after you have secured all the laws necessary for safe- 
 guarding dangerous machinery, after you have issued every con- 
 ceivable order for the uses of safeguards, and after you h^ve 
 secured a compliance with all these laws and orders, you will 
 find you have gone only about one-third the way. In other words, 
 it has been found by those companies who have done the best 
 work in reducing accidents, that only about one-third of the 
 reduction has been made by the use of mechanical guards. The 
 other two-thirds have been accomplished by education, and co- 
 operation between employers and employees. 
 
43] 113 
 
 The next step, therefore, was the organization of a large 
 committee for the further extension of the educational work 
 along the lines of safety and sanitation. This committee 
 holds its meetings on the first Tuesday of the month. At one 
 of these, meetings, the question of "first aid" will be taken up 
 and the best authority in the country will be secured to give an 
 illustrated lecture on the subject, and the employers will see 
 to it that their first aid men attend this meeting. At the next 
 meeting, perhaps, "Foundry Accidents" will be the topic, and 
 the best authority to be found will give an illustrated lecture, 
 showing burns and other accidents and what can be done to 
 reduce the number. Foundry owners will see to it that the 
 foundrymen attend this meeting. The next meeting will dis- 
 cuss "Emery Wheel Accidents;" the next, "Exhaust Systems;" 
 the next, "Fly. Wheels," and so on until all the various danger 
 points of places of employment are considered. Such men as 
 WiUiams from Boston, Campbell, of the Illinois Steel Corporation 
 Schweddtman, from St. Louis; Shattuck, of the Kimberly-Clark 
 Co.; Young, from Chicago, and Cameron, of the American Found- 
 ers, have addressed various meetings of this kind in the State. 
 
 Running along siinultaneously with this campaign, the 
 Industrial Commission has its deputies assisting the employers 
 in the organization of "Safety First" departments, as separate 
 and distinct as the "purchasing department" or the "sales 
 department" of an ordinary establishment. In describing this 
 "Safety First" organization, I can do no better than to quote 
 from an address recently delivered by our Mr. G. W. Price, 
 assistant to the Industrial Commission, who has had this work 
 in charge. He says: 
 
 "1. It goes without saying that the men at the top — the 
 owner of the business and the manager, must be in sympathy 
 with the movement and must get back of it, and as stated before, 
 must have convinced the workmen of their own intentions by 
 visible signs. 
 
 "2. The next step is to appoint what is called a 'Central 
 Committee,' composed of the superintendent as chairman, 
 and four or five high-grade men in whom the owner of the 
 business has confidence and in whom the foremen and workmen 
 have confidence. The general management of the safety work 
 is placed in the hands of this committee and all important mat- 
 ters are referred to it for decision. 
 
 43 — 8 
 
114 [43 
 
 "3. Practically all plants have found it necessary to ap- 
 point one man, whom they call a Safety Inspector. In larger 
 plants he gives his entire time to the work. In smaller plants 
 he may give only a few hours each day to the work. The 
 Safety Inspector acts as the secretary of the central committee 
 and looks after all the details of inspection, all reports, and keeps 
 in touch with the various committees in the shop. In other 
 words, he attends to the details which busy superintendents 
 and foremen cannot and will not attend to. 
 
 "4! It has been found indispensable to have each foreman 
 make an inspection of his department, say once a week, and 
 submit to the central committee a written report regarding the 
 conditions. This plan places a certain definite responsibility 
 upon each foreman and gives him an active part in the safety 
 campaign. Unless he is given a part to do he is apt not to take 
 an active interest. 
 
 "5. In the majority of plants the superintendent holds 
 a meeting with his foreman at least once a month for the con- 
 sideration of safety. The superintendent presides at these 
 meetings and the Safety Inspector acts as secretary. A number 
 of accidents which have occurred during the month are dis- 
 cussed and ways and means are suggested for their prevention. 
 A very important and fruitful subject for discussion is the ways 
 and means of reaching the workmen. It is always found that 
 certain foremen are more successful along this line than others, 
 and their suggestions serve to help and encourage the others. 
 One superintendent told me that in one hour's time each month 
 with his foremen gathered together he could do more to line 
 them up and keep them interested and enthusiastic than by 
 going to them individually every day in the month. 
 
 "6. The most important feature of organizing safety work 
 has been workmen's inspecting committees. In each depart- 
 ment three rank and file workmen are appointed to serve one, 
 two and three months and are authorized and encouraged to 
 make a thorough inspection of their departments once a week, or 
 at least once a month. In many plants they also investigate 
 serious accidents. The reports of these committees are always 
 made in writing and are sent to their immediate foremen. The 
 foremen attend to the majority of suggestions, because they 
 us.ually cover minor points of danger, and especially of careless 
 practice. The complete report with the points which have been 
 attended to, checked off, is then sent to the central committee." 
 
43] 115 
 
 Up to date, approximately 60 per cent of the factory employ- 
 ers in Wisconsin are working where safety organizations are 
 installed. Most of these factories publish safety papers or 
 magazines, , which are mailed to every employe. These publi- 
 cations will contain articles written by -employes, offering sug- 
 gestions for the prevention of accidents, or relating some ex- 
 perience which serves as a warning to a fellow workman; or 
 favorable mention will be made by the company of some work- 
 man who has distinguished himself in designing a good guard, 
 or has saved a life. It will also contain details as to how various 
 accidents occur, etc. Many companies post a complete de- 
 scription of every accident on a bulletin board, where all em- 
 ployes may read it. They give instruction to workmen as to the 
 dangers surrounding them. They offer prizes to those who 
 devise the best safeguards and become the most proficient in 
 the rules adopted for the safety of the men. In fact, almost 
 every conceivable means is used for the elimination of accidents. 
 
 A few months ago the Milwaukee Safety Committee bor- 
 rowed four moving picture safety films from the National 
 Manufacturers' Association, and gave an exhibit in- the Audi- 
 torium, which was attended by 12,000 workmen. Later these 
 films were used for an illustrated lecture in the city of Superior, 
 where the opera house, having a .seating capacity of 1,800, was 
 filled by the laboring people of the town and 500 more were 
 turned away for lack of room. The Manufacturers' Association 
 of Racine had the use of these films for a week, and the city, of 
 Wausau had them for three nights. The commission is getting 
 up films similar to these and will exhibit them in every town in 
 the state during the next few weeks. 
 
 We are also collecting photographs of rest rooms^ factory 
 hbraries and reading rooms, factory and store restaurants, clean, 
 sanitary working places and well ordered establishments of all 
 kinds, pictures of crippled employes, families made dependent 
 on account of accidents, statistics as to waste, cost of compensa- 
 tion, and everything which will tend to keep employers, em- 
 ployes and the public alive to the work of accident prevention, 
 all these photographs will be placed upon slides and used in 
 lectures before women's clubs, labor and manufacturers' organi- 
 zations, commercial clubs, and in churches, schools and colleges 
 all over the State. The subject of safety is now being taught 
 in every school, and is being preached from every pulpit in the 
 State. 
 
116 [43 
 
 The President of the State Federation of Labor has been, and 
 is, devoting a great deal of his time lecturing on safety to the 
 various central bodies of organized labor and other civic bodies, 
 and about thirty of the manufacturers of the State who have 
 had the greatest reductions in the number of accidents have 
 volunteered to go anywhere in Wisconsin and spread the gospel 
 of "Safety First." 
 
 Now as to results: 
 
 1. There has been more safeguarding of dangerous ma- 
 chinery in any one of the last three years than during any five 
 preceding years. 
 
 2. The accident roll has been cut in two. 
 
 3. The amount of time lost as a result of accidents has been 
 more than cut in two. 
 
 4. The cost to injured workmen for securing compensation 
 for accidents has been practically eliminated. 
 
 5. The necessary cost to employers in compensating 
 accidents has not b«en materially increased. 
 
 6. The number of injured employes who receive compen- 
 sation has been increased from 10 per cent of those injured, to 
 nearly 100 per cent. 
 
 7. The amount of compensation so received has increased 
 from $75,000 to nearly a million dollars a year. 
 
 8. Damage cases in court arising out of accidents have 
 practically been abolished. 
 
 9. Instead of the 10 per cent who were able to secure dam- 
 ages under the old liability laws at the end of law suits dragging 
 along for two to twelve years, now practically every injured 
 •workman gets compensation at the end of two weeks and for 
 every week thereafter during disability, at a time when he most 
 needs it, without the necessity of the expenditure of a single 
 dollar. 
 
 10. We have reduced the number of prosecutions for vio- 
 lations of the safety laws from as high as 365 a year, to not a 
 single prosecution in over three years. 
 
 A few days ago an official from another State came to Wis- 
 consin to ascertain what we were doing and how we do it. After 
 reviewing the work, as I have done with you, he said: "You 
 need not tell me I can go down into city and get any- 
 thing out of a certain class of employers there without giving 
 them some stiff jolts in the courts." I told him we had exper- 
 ienced no difficulty, and that I thought the scheme was worth 
 
43] 117 
 
 trying. I wanted to tell him, "No, I do not think you can do it. 
 In fact, I am sure you can't. You were not put together right. 
 A threshing machine was never intended for the manufacture 
 of sugar." 
 
 This brings me to another question which must not be lost 
 sight of in the great work of accident prevention. The in- 
 spector should be placed under civil service and the tenure of 
 ofTice should be for life, or during such time as he can satisfac- 
 torily perform his duties. He should then forget politics and 
 devote his time to becoming proficient in his work, to making his 
 services indispeinsable to the State, as well as to both employers 
 and employes. 
 
 Those who framed our government contemplated that the 
 olTicer should be the servant of the people, not the master. 
 This is the spirit in which an inspector should approach both 
 employer and employee in the work of accident prevention. 
 If the employer protests against replacing a square head in a 
 jointer by a circular one, claiming it is not dangerous, that the 
 square head has been in use for twenty-five years without a single 
 accident, the inspector should be able to tell him of the number 
 of cripples square head jointers have made in the State during 
 the last two or three years, the amount it has cost in compensa- 
 tion, doctor bills, hospital fees and surgical appliances, etc. 
 If, after giving such facts as these, the inspector fails to get his 
 man, he himself has made a failure and should be made to feel it. 
 A thousand times more can be accomplished by being armed 
 with facts and figures than by force. Think of a man going into 
 an industrial establishment to educate the employees as to the 
 dangers surrounding them, with a club in his hands. He would 
 be mobbed within two seconds. Think of approaching an em- 
 ployer with the same club. He would perhaps be tolerated but 
 he would not accomplish his purpose. This has been our ex- 
 perience in "Wisconsin. 
 
118 [43 
 
 LETTER FROM MR. HENRY ABRAHAMS, 
 Secretary of the Boston Central Labor Union. 
 
 The commission is in receipt of the following letter from Mr. 
 Henry Abrahams, secretary of the Boston Central Labor Union, 
 dated July 9, 1914: 
 
 I am writing you because of the approval and interest which 
 organized labor has in workmen's compensation legislation in 
 general and with particular reference to the satisfactory working 
 out of the Massachusetts Workmen's Compensation Act; and 
 because of my desire to strongly recommend the adoption of 
 similar legislation in your State. 
 
 I have been secretary of the Boston Central Labor Union for 
 seventeen years, and secretary of the Cigar Makers' Union 
 for twenty-five years, and am at present the active secretary of 
 both organizations. During all this time, and prior thereto, I 
 have been associated with workmen in all lines of industry and 
 have been interested, with them, in endeavoring to secure the 
 passage of legislation which would insure workmen and their 
 families against need and privation when industrial accidents 
 took away from them their ability to earn wages. It has been 
 only after years of persistent effort that we secured the passage 
 of the present workmen's compensation act and I now can speak 
 with the experience of two years under it against the old common 
 law system and in favor of the workmen's compensation measure. 
 
 Under the old common law system, 90 per cent of the work- 
 ingmen who received injuries arising out of and in the course 
 of their employment did not get a dollar; the other 10 per cent 
 were obliged to bring suit, in most instances, and wait in some 
 cases from one to five years before their claims could be adju- 
 dicated by the courts. This meant the engaging of lawyers on a 
 50 per cent commission basis with the net return to the em- 
 ployee in the long run small. It has been shown by the statistics 
 gathered by the Massachusetts Industrial Accident Board that 
 five times as much has been paid injured workmen under the 
 present law than under the common law system; and that in 
 death cases alone more money has been paid than under the 
 bygone system. Nearly two million dollars has actually been 
 paid to injured workmen and their dependent widows and 
 children as a result of the first year's administration of this law 
 and this sum will be greatly increased in the second year which 
 has just closed. 
 
43] 119 
 
 The benefits of the workmen's compensation act comes 
 to the employees automatically, under the strict enforcement of 
 the law by an ideal Industrial Accident Board, composed of 
 men who are regarded by employer and employee alike, and 
 especially by organized labor, as the highest type of men in the 
 commonwealth. We have been indeed very fortunate in having 
 • honest, sincere, incorruptible men on this board, men who have 
 from the very first been determined to deal out exact justice, 
 ; impartially and promptly to all. When an insurer fails to 
 meet its obligations under the act, the employee has a remedy 
 at hand in short order. He can ask for a hearing before a 
 committee and is entitled to name a representative on said com- 
 mittee. The insurer also names one, and a member of the In- 
 dustrial Accident Board sits as chairman and assists in bringing 
 out all the facts so that a fair decision may be rendered. I have 
 been a member of such committees at various times and know, 
 from my own experience, the temper of the members of the . 
 Industrial Accident Board. They have invariably done justice 
 to every case and organized labor is well plaesed with their 
 work. The members of this Board settle thousands of cases 
 without the formality of a hearing, getting the insurance repre- 
 sentative and the employee together on common ground when 
 little difficulties arise and adjusting all grievances in accordance 
 with the requirements of the law. 
 
 We would not go back to the old-time common law suits, 
 with the three impenetrable defenses which were formerly avail- 
 able to employers and insurance companies, that is, the defense 
 of negligence of the employee, negligence of his fellow servant, 
 or the assumption of the risk of the injury. Now there is none of 
 this; the employee receives compensation whether he is negligent, 
 assumes the risk of injury, or whether a fellow servant caused 
 the injury, provided solely that the injury arises out of and in 
 the course of his employment and that he did not seriously and 
 wilfully cause said injury. 
 
 Please tell the members of organized labor of Missouri 
 that 89,000 injured employees in Massachusetts who shared in 
 the benefits of this great law say to them that the sooner they 
 place such a law on the statute books of Missouri, the better it 
 will be for them and their children; for exactly that number and 
 a few more received benefits during the first year's administra- 
 tion of our law. And finally, let me give you permission to use 
 this letter in any way you desire. 
 
Cornell University Library 
 HD7816.U7M861914 
 
 Report of the Workmen's Compensation Com 
 
 3 1924 002 266 850