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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: Rubinow, Isaac Max Title: Studies in workmen's insurance, Italy, Russia Place: New York Date: 1911 COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET MASTER NEGATIVE * ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD "BUSINESS 850.2 R82 mmmm Rubinow, Isaac Max, 1875- Studies in workmen's insurance, Italy, Russia, Spain ... New York, 1911. 4 p. 1., Arprr'H:, p. 1699-2376, i6] p. incl. tables. 23'^". Thesis (ph. d.) — Columbia university. Vita. Bibliography: p. 2010-2013. 2314-2318, 2375-2376. List of the author's publications : [4] p. "The studies offered herewith represent the author's contribution to the Twenty-fourth annual report of the United States commissioner of labor on "Workmen's insurance and compensation systems in Europe." 1. Insurance, Industrial. Title from Columbia Univ. O A 12-84 Printed by L. C. RESTRICTIONS ON USE: FILM SIZE: ^^-^ TECHNICAL MICROFORM DATA REDUCTION RATIO: ' ^ ^ IMAGE PLACEMENT: lA Q) IB liB DATE FILMED: '^-/C>~9S~ INITIALS: 0)0^ TRACKING # : U^iLf (^S2S7 FILMED BY PRESERVATION RESOURCES, BETHLEHEM. PA. > .^/ ^^ a? Ln 3 3 O" Is 13 r- (/> N C/) CJl ^-< OOM o 3 3 > o m ^ o O CO < N X M .'v'^ .•9/ ^, 'V? '^. <(/, e^ >o-? el ■^ ^^ *^ .'V^' > Ul A' ^wl-v. <;i^. a? 'V^ ^1^ 1.0 mm 1.5 mm 2.0 mm O O 3 1 o 3 3 o o 3 3 O poopi?|5|l| 1° 11^ 11^ I ro bo c> o ro I Ln AHCDEFGHIJKLMNOPQRSTUVWXYZ abcf(efghi|klmnopqrstuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghi)klmnopqrstuwvxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 2.5 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 A. '' '"*■*. c^ ■^ t* V «.< ■^ ^cp ^P ^ m H O O ■D m "o > C CO I ^ -1 0 5TUD1L5 IN WORKMEN'S INSURANCE: ITALY, RUSSIA, SPAIN BY I. M. RUBINOW Chief Statistician of the Ocean Accident and Guarantee Corporation, Formerly Statistical Expert, United States Bureau of Labor A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY « IN the Faculty of Political Science, Columbia University i^ New York 1911 Prom Lib. of Jolxa Bates Clark qot.l5,ld40 ■na V. "i/ ,' CO • > • • • > \ n *9^' PRLFACL The studies offered herewith, on Workmen's Insurance in Italy, Russia and Spain, represent, — together with a considerable portion of the study of the same problem in France, — the author's contribution to the Twenty-Fourth Annual Report of the United States Commissioner of Labor on "Workmen's Insurance and Compensation Systems in Europe." This explains the nature of treatment of the material, w^hich is descriptive rather than critical, — a limitation under which most government reports necessarily labor, especially when dealing with foreign economic and legal conditions. It would indeed be unfortunate if the writer's personal views and con- victions were permitted to create grave international conflicts. It may be added that the same circumstance has determined the somewhat unfortunate typographical form of this book, showing itself in the matter of running page headings, pagina- tion and numbering of chapters, all of which the fastidious reader will not have failed to notice. It is the author's mis- fortune, rather than fault, that in an alphabetic arrangement of European countries, Norway— the domain of another student- intruded between Italy and Russia with the malicious intent of breaking down the continuity of pagination. And finally, what is more important, the same circum- stance explains the somewhat accidental selection of the coun- tries, which— in the process of distribution of an enormous task among several fellow workers— was determined by such con- siderations as knowledge of certain languages and some famil-' iarity with the conditions of the countries treated. It was the author's fate to be left to the less familiar hunting grounds. It is hoped, however, that some unity of thought may be found in the various chapters, and that there need be no apology for presenting them together. The problem of social insurance which suddenly has acquired such tremendous importance in this country, is mainly discussed upon the basis of German and English experience; the first because of tlie remarkable com- pleteness and unity of its system, the latter because of the nat- ural tendency to follow British precedents. Much less known are the results of Romance and Slavic experience. The three countries brought here together in one volume show the work- ings of many difllerent institutions and forms of insurance, com- pulsory as well as voluntary, private as well as state. Thc^y show how unwilling were many of the countries in adapting the (ier- man ideas of compulsion. They also show how insistent is the demand of social progress that they should eventually do so. If as a result of a study of these chapters, the reader may come to the conclusion, that the trend everywhere seems to l)e fiom voluntary to compulsory insiu'ance, that success of all forms of social insurance is almost directly proportionate to the degree of compulsion, then it is hoped this conclusion will not be as- cribed to the author's leaning to the compulsory principle, an- nounced in some desultory way in magazine articles more than eight years ago, but to an accurate and impartial presentation of the facts and figures collected during three years of patient application. 1. M. R. New York City, November, 1911. II TABLL OF CONTLNT5 Workingineii's Insurance in Italy I(i!)7-2(I13 Introduction 1G9U-17UI Accident Insurance 1701-1827 History of Accident Insurance Legislation 1702-1713 Legislation in Force 1713-1733 Application of the Law 1733-1744 The National Accident Insurance Institution 1744-1782 The Compulsory Mutual Accident Insurance Associa- tion for Sicilian Sulphur Mines 1 782-1 7!I2 Compulsory Association for Insurance of Seamen. . . . 1793 Other Accident Insurance Associations 1 703-1 791> Proposed Reforms 1799-180() Statistics of Industrial Accidents 1806-1827 Sickness Insurance 1828-1802 History 1828-1832 Provisions of the Law of April 15, 1880 1832-1835 Statistics of Mutual Benefit Societies 1835-1849 Proposed Reforms 1850-1851 Maternity Insurance 1851-1802 Old Age and Invalidity Insurance 1802-1904 National Old Age and Invalid Insurance Institution. . 1802-1899 Compulsory Old Age Insurance for certain State Employees 1899-1904 Unemployment Insurance 1904-1934 Unemployment Statistics 1904-1909 Unemployment Relief by Labor Unions 1904-1914 Private IJnemployment Insurance 1914-1930 Unemployment Benefits by Trade Associations 1930-1933 Railroad Pensions and Mutual Aid Institutions 1935-2099 Introduction 1935-1941 State Railroad Pension Fund 1941-1901 State Railroad Mutual Benefit Society 1902-1990 Provident Institute of the State Railroads 1990-2001 Law of July 9, 1908 2001-2004 Conclusions 2004-2009 Bibliographv 2010-2013 Workmen's Insurance in Russia 2085-2318 Introduction 2087-2092 Accident Insurance 2092-2206 Employers' Liability 2092-2097 History of Compensation Legislation 2097-2102 Workmen's Compensation — Present Status 2102-2119 Special Provision for State Employees 2119-2127 Statistics of Operation of the Law 2127-2137 Private Voluntary Accident Insurance 2137-2150 Proposed Reforms 2150-2155 Statistics of Accidents 2156-2206 Sickness Insurance 2206-2254 Medical Aid 2207-2229 Financial Assistance 2229-2243 Proposals for Compulsory Sickness Insurance 2243-2254 Old Age and Invalidity Insurance 2254-2313 State Miners' Brotherhoods 2255-2259 Railroad Employees' Pension Funds 2259-2288 Pension Funds for Liquor Monopoly 2288-2296 Pension Fund of Other Government Employees.... 2296-2299 Pension Fund of the Zemstvos 2299-2305 Efforts for Reform 2306-2313 Bibliography 2314-2318 Workmen's Insurance in Spain 2319-2376 Introduction 2321-2322 Accident Insurance 2322-2354 History 2322-2328 Legislation in Force 2328-2342 Proposed Reforms 2342-2350 Statistics of Industrial Accidents 2350-2354 Sickness Insurance 2355-2359 Commercial Insurance Companies 2355-2356 Mutual Benefit Societies . 2356-2359 Old Age Insurance 2359-2372 The National Institute : 2360-2369 Private Voluntary Old Age Insurance 2369-2372 Railroad Employees' Funds 2372-2373 Life Insurance in Connection with Workmen's Dwellings 2373-2375 Bibliography 2375-2376 r WORKMEN'S INSURANCE IN ITALY I . I CHAPTER VII. WOEKMEIT'S IirSURAWCE IN ITALY. INTRODUCTION. The beginnings of workmen's insurance in Italy may be traced to voluntary cooperative organizations. These organizations provided for mutual help in a great mauy different emergencies, but primarily for sick benefits. They were known in the eighteenth century, but began to develop rapidly in the seventies of the nineteenth century, and by 1886 their importance was sufficiently great to cause the adoption of a special law regulating them to some extent. A few years before, by the law of 1883, the National Accident Insurance Institution was authorized for voluntary insurance against accidents. This was a private institution, formed for that purpose by a combination of 10 savings banks, but under government supervision. For the next fifteen years the question of workmen's insurance in all its phases was under continuous discussion, but very Uttle of actual legislation was accomphshed. On March 17, 1898, the acci- dent insurance law was passed, estabhshing what is practicaUy com- pulsory accident insurance, though with freedom of selection of the earner of the insurance, for a considerable portion of Itahan manufac- tunng industry and minmg. In the same year the national institu- tion for voluntary old-age and mvahdity insurance was orgauized. These two laws of 1898 present the essential legislative acts of Italy in connection with workmen's insurance. The accident insurance system was considerably extended and amended by the act of June 20, 1903, the codified text of the law being pubUshed January 31, 1904, and the system of voluntary old-age and invahdity insurance wa^ modified by the amending acts of July 7, 1901, and of May 20,1907. But no essentially new principles were introduced by any of 'these amending acts. fv.^!f*^/^^^^ ^^^ ^^^^ accomphshed by the Italian Government in the held of sickness insurance in comparison with accident and old- age insurance. The only measure enacted of any importance is the law of April 15, 1886, concerning recognition or mcorporation of the voluntary private mutual benefit societies wliich concern themselves mamly but not exclusively with sickness insurance. ^ Maternity insurance, which may be considered as a form of sickness insurance, has been earnestly discussed m Italy for over a decade. 1699 1700 BEPOET OF THE COMMISSIONER OF LABOB. The question was raised by a few individuals early in the last decade of the nineteenth century, and the influence of their agitation in pri- vate orgamzations was powerful enough to call forth a government ^- uV^^' f ^^^'^^ ^^ ^ national maternity insurance institution. Ihis bill, with some modifications, became a law on July 17, 1910 An explanation of the slow development of social insurance in Italy may be found in the general economic status of the country The occupational statistics of Italy disclose the fact that it is still largely an agricultural country. In 1901 the number of persons employed in the manufacturing mdustnes (mcluding mining) in Italy did not exceed 16 per cent of the total population over 9 years of age, or about 25 per cent if only persons gainfully employed be taken into consideration. Agricul- ture claimed 38 per cent of the total adult population, or nearly 60 per cent of that part which was gainfully employed. The occupa- tional statistics of the census of 1882 and of 1901 were presented according to different systems of classifications and are scracely com- parable; nevertheless a comparison of the statistics for the two years indicates an absence of any very large and raj^id development of mdustnal employment. NUMBER AND PER CENT OF PERSONS OVER 9 YEARS OF AGE IN ITALY, CLASSIFIED BY INDUSTRY AND SEX, CENSUSES OF 1882 AND 1901. ^"^^^^'^'^^ [Source: Annuario Statlstico ItaUano, 1905-1907, VoL I, p. 111.] Industry, etc. Agriculture, fishing, etc Mining, metallurgy, stone quarrying,' etc! Manufacturing, etc.: Building Textiles Clothing "!.'!!!!!!!.'! Food products ....!!!!!!! Wood and straw working. All other industries Census of January 1, 1882. Males. Total manufacturing, etc Transportation Commerce and exchange. . . Public undertakings ,[," Domestic service, private employ" etc Public administration Professions Defense of the land Persons living from revenues! ! ! Persons supported by families. .'. Persons supported by pubUc or private charity, Persons of unknown occupation! ! !!!!!!!!!!!!!!!!!! 6,513,545 399,920 518,876 137,476 494,432 267,938 307,802 152,520 Females. 3,101,163 7,915 67,914 1,213,978 498. 523 55,615 73,400 26,554 Total. Numbw. Total. 1,879.044 310,519 325,716 118,298 306,822 164,962 271,652 160, 155 427,456 554,480 101,115 725,284 11,258,968 1,935,984 2,664 71,377 71,280 413,022 2,400 95, 470 8.614,708 407,835 586,790 1,351,454 992,955 323,553 381,202 179,074 Percent. 38.20 1.81 535,425 4,103,608 96,161 855,691 11,292,158 3,815,028 313, 183 397,093 189,578 719,844 167,362 367, 122 160, 155 962,881 4,658,086 197,276 1,580,975 2.60 5.99 4.40 L44 1.69 .79 16.91 22,551,126 L39 L76 .84 3.19 .74 L63 .71 4.27 20.66 .88 7.01 100.00 OHAPTEB VII. — WOEKMEN's INSURANCE IN ITALY. 1701 NUMBER AND PER CENT OF PERSONS OVER 9 YEARS OF AGE IN FTALY CLAfiSIFrFn ^Y INDUSTRY AND SEX, CENSUSES OF 1882 AND 1901-SnSeS. ^"^ Industry, etc. Agriculture, fishing, etc Mining, metallurgy, stone quarrying," etc Manufacturing, etc.: Building... Textiles .".*! Clothing !!!!!!!!! Food products !.!!!!! Wood and straw working. .. ! All other industries Census of February lo, 1901. Males. 6,466,165 646,222 Females. 3,200,302 9,938 Total. Number. 9,666,467 556,160 Percent. 38.08 2.19 Total manufacturing, etc Transportation Commerce and exchange!!! Public undertakings Domestic service, private' employ, "etc! ! " *" Pubhc administration... Professions Defense of the land. . ...!!! Persons living from revenues Persons supported by families. ."." ^^^J^Sg^upported by pubUc or private " charity. Persons of unknown occupation !!!!!!!!!!!!!!! 558,890 121,479 574,666 270, 431 343,139 203,563 Total. 2,072,168 416, 152 468,918 140, 769 226,795 173. 177 274,084 204,012 301,596 1,160,969 80,178 10,603 5,906 661, 774 539,177 44.069 67,796 42,764 1,3 61,488 7,639 111,179 52.087 404,440 5.064 131,927 564,798 783,253 1,113.843 314.500 410,935 246,327 299,156 7,194,804 66,675 3,433,656 2.22 3.08 4.39 L24 L62 .97 423,791 580,097 192,856 631,235 178,241 406,011 204,012 600,752 8,355,773 146,853 10,603 12,541.808 i 12,844,699 25,386,507 13.52 L67 2.29 .76 2.49 .70 1.60 .80 2.37 32.91 .58 .04 100.00 ACCIDENT INSURANCE. The present system of compulsory insurance of workmen against mdustnal accidents dates back to the law of March 17 1898 which went mto eflFect September 17, 1898. The law was ^onsiderablv amended by the act of June 29, 1903, and promulgated in codified form January 31, 1904, in which form it went into effect through a retroactive clause December 30, 1903. The system of compulsory insurance of workmen against acci- dents has been m existence in Italy for over ten years. The substi- tution of this system for the old system of employers' HabiHty was not estabhshed m a day. The first efforts of reform of the legal prin- ciple of employers' HabiUty began as early as 1879, and the history of these efforts, lasting almost uninterruptedly through two decades, gives interesting material for the study of the development from the one extreme of civil habiUty of the employer for his act to the other of an absolute nght of the employee to compensation in ca^e of indus- ^^L^7t '}^^ '^''''^'P* ^^ ^"^^" ^^^' ^^ ^^^ collective responsi- lot of If! ^t"' u{ '^'^'' *^"^ ^^ i^^ individual employer for the proci^ '^ unavoidably connected with modem industrial repeats m Its articles 1152, 1153, 1157, and 1644 the provisions of 1702 REPORT OF THE COMMISSIONER OF lABOR. the French civil code concerning the responsibility of the employer for injuries to employees. These provisions differ little from the general principles of responsibiUty for injuries resulting from the acts of commission or omission of any person or his agents. HISTORY OF ACCIDENT INSirBANCE LEGISLATION. The conviction that the common law did not supply the necessary protection of the industrial worker, and that there was need for special protective legislation, found its first fonnal expression in the Chamber of Deputies in the bill covering workmen in the construc- tion of buildings, in mines, and workshops introduced March 17, 1879. The basic principle of this proposal was the transfer of the burden of proof from the employee to the employer. It proposed that the employers of labor in the industrial fields indicated should be respon- sible for injuries sustained by workmen through industrial accidents unless these accidents had been caused through the fault of the victim or through pure chance. This bill never came up for open discussion in the Chamber. A bill introduced in the Chamber of Deputies June 9, 1880, was based on the same principle of civil responsibility with change of the burden of proof, and in the main followed the lines laid down in the earlier proposal. This proposal did not meet with any greater suc- cess than of the pioneer proposal of 1879. The two preceding bills introduced were proposals of individual deputies and did not seem to have any considerable influence upon the membership of the Chamber. The numerous proposals made within the next two decades all came from the Government. The first of these government proposals was introduced in the Chamber of Deputies June 28, 1881. In the main, this first governmental pro- posal followed the Unes of its predecessors. It aimed to estabUsh the presumptive HabiHty of owners of land and buildings and employers of factories, mines, and quarries, in case of accidents caused by total or partial coUapse of buildings tluring construction, landslides, exca- vations, explosions, and similar occurrences, but not in all accidents, as provided in the preceding bill of 1880. A parUamentary commission appointed to examine into the gov- ernmental proposal as well as into that of the ])receding year, brought in its report November 24, 1881. This report entirely rejected the fundamental basis of all these proposals. It asserted that the pre- sumption of fault of the employer, and the consequent imposition upon him of the burden of proof, was a sudden, radical, and dangerous digression from the estabhshed principles of the ('ommim law. It admitted the justice of the responsibility where the cause of the acci- dent could be traced to the employer, but thought the presentation of proof to that effect essential. CHAPTER VII. — workmen's INSURANCE IN ITALY. 1703 A new bill was introduced February 19, 1883, based, Uke the pre- ceding ones, upon the principles of transfer of the burden of proof, and also accepting the principle of joint responsibiUty of the owners and managers as indorsed by the parUamentary commission of 1881, to which it added the responsibiUty of the engineers and architects who direct the work. In other particulars the biU differed materially from the earUer biUs. It was broader in scope in that it included railroads. The biU provided that if the employer participated in the cost of insurance of his employees against industrial accidents, at least up to one-third of the premiums, the amount of the insurance must be deducted from the amount of indemnity granted by the court. This provision was to act as a stimulus for encouraging such insurance, with the employer's participation in the cost. It is evident that in introducing this clause the Government had in view its plan for the estabUshment of the national fund for insurance of worknien against accidents, which was accompUshed in the same year by the law of July 8, 1883. This second government biU was referred to a parUamentary com- mission, which reported it back April 8, 1884. Again the parUa- mentary commission refused to accept the reforms contained in the government proposal, insisting that they were at variance with the fundamental principles of civil law. Instead of the joint responsi- biUty of engineers, managers, employers, and owners for accidents it proposed a new biU containing specific regulations for the prevention of accidents in each industry and civil UabiUty only in case of non- compUance with such regulations, only such persons being Uable who were guilty of such noncompUance. It also introduced other Umita- tions, such as the exclusion of the railroads. This modified bill according to the report brought in by the commission was to pro- tect the rights and interests of workers without injuring any other rights and without prejudicing the industrial progress of the country. The original bill of 1883, as well as the amended bUl of the parlia- mentary commission, came up for an extended discussion in the Cham- ber of Deputies and was adopted by the Chamber June 15, 1885. In passing this bill the Chamber included many important amend- ments, in which the influence of the German insurance system could be seen. The purpose of these amendments was to stimulate further the insurance of employees b^ the employers, though a voluntary system was thought preferable and better adapted to Italian con- ditions than the compulsory system established in Germany, and for the purposes of such voluntary insurance the National Insurance Fund already existed. The bill as passed by the Chamber of Deputies finally came up for discussion in the Senate, when a report was made by a senate commission on April 2, 1886. The majority of the senate commis- 67725*'— VOL 2—11 14 1704 REPORT OF THE COMMISSIONER OF LABOR. sion disagreed entirely with the fundamental principle of the bill and presented a counter project, which made the owners, em])loyer8, etc., responsible for the accident only when these persons had not conformed to all requirements as to prevention of accidents. The bill and the counter proposition were thoroughly discussed, but led to no practical results. These discussions in the Senate closed the first period of the history of workmen's insurance against accidents in Italy — a period based upon the strengthening of the civil responsibility of the individual employer (employers' liabihty), with leanings during the last two years of the period toward a system of voluntary insurance. A new period was ushered in by the new imnister of commerce and agriculture, requesting Prof. Carlo F. Ferraris to pr<»[>are a report covering the entire subject of insurance of workmen against accidents. The selection was significant, as l^rofessor Ferraris was known as a believer in the systepi of obligatory insurance. In his report to the commission (^) Professor Ferraris proposed a system based upon obligatory insurance, totally at the expense of the employers, covering all cases of accidents, inchiding those caused by the negligence of the victim himself, and he combined with this system of obligatory insurance preventative measures, so as to reduce the frequency of accidents. Notwithstanding a very violent opposition, the proposal of Doctor Ferraris was accepted by the consultative commission with certain slight modifications which involved a slight contribution of the workmen to the cost of insur- ance and in the beginning a limitation of the group of industries to be covered by the law. In this latter limitation the commission was quite persistent in including under the law only min\ hich were embraced the following points: The law was further extended to the tearing down of structures, and all land transportation. The form of annuities lasting until the age of 18, but twice a.s great before the age of 12 as from 12 to 18, was substituted for lump-sum payments in paying compensation to minor children or brothers and sisters; and for the relatives in an ascending line annuities were also made com- pulsory instead of lump-sum payments. In general the pension idea gained in popularity, and payment of lump sums was made conditional upon the demand of the victim. A special scale of compensation, lower than the general scale, was prepared for seamen. In addition, the central office of the Senate suggested the passage of a resolution inviting the Government to present by the end of 1904 a bill for the establishment of a simplified, more rapid, and less costly procedure for settlement of disagreements, and, secondly, to elaborate a bill for the obligatory insurance against trade diseases. A few minor changes were introduced on the floor of the Senate, some of these of material advantage or extenfling the application of the law; thus, while the text previously included employees in agri- culture handling machines moved by mechanical power, tliis was changed so as to include all machines moved by any power other than by the employees tending the machine. The right to establish obligatory employers' mutual insurance associations was further enlarged, so that no evidence of necessity was required; the evidence of feasibility was sufficient. The bill passed the Senate April 3, 1903, was reintroduced in the Chamber of Deputies May 12, 1903, referred to the commission which reported June 25, 1903, in favor of agreeing to the form of the bill as it passed the Senate, and without further changes the bill was so passed June 28, and was approved and became a law June 29, 1903. Thus two years were consumed in the process of amending the law of t 4 CHAPTER VII. workmen's INSURANCE IN ITALY. 1713 1898. But the resulting law was considerably broader than the original act and a great many crudities were eUminated. In accordance with a provision in the act of June 29, 1903, the text of the older law was codified with that of the act of June 29, 1903, and the new consolidated text of the law was promulgated by royal decree of January 31, 1904. LEGISLATION IN FORCE. The codified text of the law, as published by royal decree of Jan- uary 31, 1904, («) is the basis of the accident insurance system m force at present. This is supplemented by the regulations published by the royal decree of March 13, 1904;('') the royal decree of May 15, 1904, C^) referring to slight details of the special guarantee fund as established by article 37 of the law of January 31, 1904; the law of July 11, 1904;C^) the royal decree of July 11, 1904; and the royal decree of September 29, 1904, («) concerning the special provisions for the Sicilian sulphur mines. The royal decree of August 27, 1905,(/) refers to the insurance of seamen. The royal decree of December 24, 1903, (^) concerning the modification of existing acci- dent insurance contracts, in view of the changes in the law, had tem- porary importance only. A royal decree of December 13, 1903,^^) establishes a table of coefficients for computing the respective shares of claimants of indemnity for fatal accidents. By another royal decree of the same date(») the new regulations governing the National Accident Insurance Institution were approved and a new scale of insurance premiums established. INDUSTRIES INCLUDED. The law now covers the following branches of industry: First. The more hazardous employments, viz, work in mines, quar- ries, and peat bogs, also the working of the raw material and the loading and transportation to the shipping point and unloading of the product; the construction, repair, and tearing down of buildings, a Italian text: Annali del Credito e della Previdenza, 1904, No. 55, p. 1. German and Italian text: Zacher, Via, pp. 26, 27. French text: Annuaire de la Legislation du Travail, 1904, p. 375. „^ r, x, 6 Italian text: Annali del Credito e della Previdenza, 1904, No. 55, p. 30; Zacher Via, p. 46. German text: Zacher, Via, p. 47. French text: Annuaire de la Legisla- tion du Travail, 1904, p. 400. c Annali del Credito e della Previdenza, 1904, p. 132. d Annali del Credito e della Previdenza, 1904, No. 55, p. 129. « Bolletino di Notizie sul Credito e sulla Previdenza, 1904, p. 1643. / Annuaire de la Legislation du Travail, 1905, p. 463. g Annali del Credito e della Previdenza, 1904, No. 55, p. 125. Annuaire de la Leg- islation du Travail, 1904, p. 464. . J 1 T • h Annali del Credito e della Previdenza, 1904, No. 55, p. 89. Annuaire de la Legis- lation du Travail, 1903, p. 314. i Annuaire de la Legislation du Travail, 1903, p. 353. 1714 REPORT OF THE COMMISSIONER OF LAROR. whether in the city or in the country, also including the loading, transportation, and unloading of the construction materials; gas works, electric power houses, and the transmission of gas and elec- tricity; telephones; the placing, repairing, and taking down of elec- tric conductors and lightning rods; arsenals, shij) yards (except such as do not build any craft with a displacement of over 10 tons), and all industrial establishments in which explosives are manufactured or used. In this group all establishments are included without regard to the number of employees. Second. All establishments in the following industries which employ more than five workers: The construction and operation of steam railways, or other railways driven by mechanical power; trans- portation on land, rivers, canals, and inland lakes, or deep-sea navi- gation; deep-sea fishing within 10 kilometers (6.2 miles) from the shore, and all sponge and coral fishing; loading and unloading; irrigation works, drainage and reclamation, and leveling and grading works; felling and chopping trees in forests; transportation of logs and wood to the wagon road or to the river front and depositing the logs in the rivers; construction and repair of harbors, canals, dams, bridges, tunnels, and roads; and the construction, repair, and demo* lition of ships. Third. All other industries or establishments which utilize steam engines or machinery not driven by the person who tends it, and which employ more than five persons. All employees of these estab- lishments, even if not engaged in handling the machinery, are included. Findly, the work of tending machinery driven by meclianical power and utilized for industrial or agricultural purposes; service with cannon and other firearms, used to break up hailstorms; and the commissary department of the navy. Establishments utilizing machinery temporarily only, or connected with educational institu- tions and used for the purpose of instruction, or with hospitals, asylums, or other charitable institutions, are exempted, except that those persons who tend the machinery must be insured. This very detailed enumeration of industries included under the law may be thus briefly summarized: All mining work, all building, practically all construction work, transportation, and all manufac- turing industry with the exception of the hand trades. The large branches of economic activity which are not included are commerce, agriculture (except lumbering and tending agricultural machinery), and domestic service. Cooperative establishments are subject to the provisions of the law on equal terms with other establishments, and the members of the cooperative group, if working in the establishments, must be insured like other employees. t + CHAPTER VII. workmen's INSURANCE IN ITALY. 1715 The law also extends over the establishments, undertakings, or construction work of the state, provincial, or communal governments, or operated by private persons or corporations under a franchise (concession) from the Government. PERSONS INSURED. The law applies to all workmen employed in the establishments and branches of industry enumerated above, and working outside of their own homes, whether at time or piece wages; also persons employed in a supervising capacity receiving not more than 7 lires ($1.35) per day and who are paid at least once a month; to appren- tices employed in the work, whether with or without pay. Work- men who are hired and paid by other workmen in the establishment are considered for this purpose as direct employees of the establish- ment. The Italian law thus differs materially from the laws of some other European countries, in that it does not include the office employees of industrial establishments or enterprises. In deep-sea navigation all members of the crew who receive not more than 2,100 lire ($405.30) per annum are included. CHARACTER OF DISABILITY COMPENSATED. The law grants compensation to the workman for all the injuries sustained because of the employment, and causing disability lasting over five days. There is no reference to the specific cause of the accident, the whole question of negligence, even if gross, having been entirely eliminated from the Itahan law. However, if the accident is due to the willful misconduct of the injured, as established by means of a penal decision of the court, the beneficiary may be sued for the amount of compensation. BENEFITS. The compensation granted by the law consists of the following: First, medical aid; in case of temporary disability, one-half the daily wages; in case of total permanent disability, an amount equal to six times the annual earnings, and a proportionate sum in partial perma- nent disability; and in case of death, five times the annual earnings. For seamen in deep-sea navigation the scale is considerably lower, namely, four years' earnings for total disability and three years' earnings for fatal accidents. The essential feature of this scale of compensation is that it is based upon lump-sum payments, and though in some cases conver- sion into pensions or annuities is compulsory, as is explained pres- ently, yet these amounts of annuities depend upon the lump sum. 1716 REPORT OF THE COMMISSIONER OF LABOR. The Italian law does not attempt to cover the entire cost of medical and surgical treatment, as some other European compensa- tions do. Medical Attendance. — Medical help to the injured is limited to the cost of first aid to the injured and the cost of transportation to the home, or to any other place where the injured person must be taken, and that of the medical certificate. This expense must be met by the employer directly, no matter how the other compensation is paid. Employers who have organized a regular medical and pharma- ceutical service for first aid to the injured, or who have contracted for such help with the ItaUan Red Cross Society, may be freed by the order of the prefect from meeting the cost of medical help in any other way, provided the arrangements are satisfactory to the })refect. Only seamen receive full medical help. As they are granted free medical treatment during ilhiess or injury by an older provision of the Commercial Code, the law specifically states that these rights are not destroyed by the new act. Temporary Disability.— When the injury caused by the accident leads to total temporary disability, the injured person receives a daily allowance equal to one-half his wage at the time of the accident for all the time of the disability. Unhke most other accident insur- ance or compensation acts, the ItaUan law recognizes besides total temporary disabiUty also the case of partial temporary disabihty. The compensation for such disability (leading to a diminution but not entire loss of earning power for a limited time) is a daily allow- ance equal to one-half the loss in wages, paid for all the time of disability. All allowances for temporary disability are paid for all days including holidays, but the day of accident is not counted. Permanent Disability. — The compensation for total permanent disability is equal to six times the annual eamhigs, but not less than 3,000 fire (S579). If the disability though permanent is only partial, leading to decrease but not total loss of earning capacity, the com- pensation is equal to six times the loss in annual earnings, but for the purposes of this computation the annual earnings must be taken at not less than 500 lire ($96.50). In either case, whether the per- manent disability be total or partial, the indemnity is exclusive of the allowances for temporary disabiUty for the first three months. If such allowances have been paid for a longer period, the excess of pay- ments over three months is deducted from the compensation finally computed. If the compensation due to partial permanent disabiUty is smaller than the allowances paid or due to be paid for temporary disability, then the injured employee has the right to this larger amount instead of the compensation for partial permanent disabiUty. chapter VII. workmen's insurance in ITALY. 1717 To determine the degree of partial disabiUty from the injury sus- tained, the following scale is estabUshed by the regulations: Per cent. Lose of the entire right arm or up to upper third - - ^0 Loss of the entire right forearm or of the left arm up to the upper thurd 75 Loss of the entire left forearm or of all fingers of the right hand 70 Loss of all fingers of the left hand ^ Loss of the right thumb ^ Loss of the left thumb Loss of the last joint of the right thumb |^ Loss of the last joint of the left thumb Loss of the middle or ring finger ^ Loss of a finger joint Loss of a thigh — Loss of leg up to upper third Loss of lower third of leg or foot Loss of big toe, and corresponding part of foot ^^ Loss of big toe alone Loss of any other toe does not give right to any compensation. Loss of more than one toe, per toe Complete deafness of one ear • Total loss of sight in one eye Total and incurable loss of function is rated as equivalent to loss of part or organ. In case of loss of several parts or organs or of any injury not mentioned, the degree of disability must be decided upon the merits of each case. When the permanent disabiUty is total or over 50 per cent, then the computed compensation must be converted into a life annuity, for which purpose the National Old -Age and InvaUdity Insurance Institution is utiUzed. Such conversion is not made immediately, however, because of the possibility that the origmal estmiate of the degree or duration of disability may not have been accurate. The compensation granted is, therefore, turned over m trust for two years to the old-age insurance institution, and monthly aUowances are paid to the injured person equal to the annuity which he could purchase with that amount of compensation. During these two years adjustments are made, as will be explained later in discussmg the subject of ''revision." After two years the remauxing sum (dis- countmg the payments and making the necessary adjustments as a result of the revision, if any) is converted into an annuity, though in exceptional cases the magistrate may, upon petition of the injured employee made within fourteen days after the expiration of the two years' limit, permit the payment of the residual amount in a lump sum instead of an annuity. If the injured person dies within the two years as a result of the accident, the remaining compensation (possibly adjusted as a result of a revision) is treated in the same way as compensation granted in ir 1718 BEPOET OF THE COMMISSIONER OF LABOR. |1; case of death; if the death is not due to the original accident, the remaining amount of the compensation is paid to the legal heirs according to the civil law. These complex provisions are evidently necessary because of the lump-sum basis for measuring compensation. The actual amoimt of the annuity is dependent upon the age, the value of the annuity purchasable with a definite amount increasing with age. Another peculiarity due to the system of lump-sum payments is that in the case of death of the beneficiary within two years from the day of the accident, if the death was m no way connected with the original acci- dent, the legal heirs inherit the bulk of the compensation, for the annuity is not purchasable until the end of the two years. Compensation for Death. — Compensation fur death is equal to five times the annual earnings of the victim, except that in deep-sea navigation the amount is smaller, equal to three times the annual earnings only. This definite sum must be distributed among the dependent members of the family as provided for in the following complicated rules: The dependent relatives are the consort, children or other descend- ants under 18 years or disabled; parents or other ascendants; and dependent brothers and sisters under 18 years or disabled. The surviving consort (of either sex) receives — Two-fifths of the compensation, if there are children or other dependent descendants under 18 years of age or disabled because of some physical or mental defect ; these descendants receiving the other three-fifths. One-half of the compensation, if there are no children or other descendants of the classes described but dependent relatives in an ascending line survive; these relatives receiving the other half. Three-fifths of the compensation, if there are no dependent rela- tives either in an ascending or descending line, but dependent brothers or sisters under 18 years of age or disabled because of some physical or mental defect; these brothers or sisters receiving the remaining two-fifths. The entire amount of compensation if no dependent relatives of the classes described survive. If the surviving consort had been divorced from the deceased through some fault of the consort, he or she is not entitled to any compensation at all. The surviving children (legal or natural) under 18 years of age and other dependent relatives in a descending fine leceive three-fifths of the compensation if the other parent survives and the entire amount if no parent survives. B ) V m CHAPTER VII. workmen's INSURANCE IN ITALY. 1719 The compensation due to aU the children together is to be distrib- uted among them in such a way that each child receives an amount sufficient to purchase a limited annuity of equal value for those under 12 years of age; after reaching the age of 12 the annuity is reduced one-half until the age of 18 is reached, when the payments cease. If among the descendant heirs there are any who are incapacitated from earmng a fivehhood because of any physical or mental defect the share of the indemnity to be given to him Is determined by the pretor (justice of the peace) and against his decision there is no appeal The remainder is distributed among the other children accordincr to the rules explained above. '^ The relatives in an ascending fine are entitled to compensation only when no dependent children survive. They receive one-half of the compensation when tlie consort survives, or the entire amount of compensation when neither children nor consort survive The amount due to all relatives in an ascending line is distributed amon'2"'^°l-S-^^ obligatoiy accident insura^^^- that It tends to make both employers and employees less careful and accidents more frequent. ^e!* careiui The law authorizes the minister, after consultation with employers Se SdZh ^l^^f ""^^^ «"d for the protection of the workmen'! me and limb. Comphance with such regulations is demanded by the 1732 BEPOET OF THE COMMISSIONEE OF LABOB. law, and noncompliance is punishable by fmes. These rcgulationa W V "^Zi ' ''?^'"**' '''"^"'^^ "^ ^'^"«*'7, and also for certain locaht es. The minister must enforce such compliance with the regulations^ For the preparation of regulations one or more of the following bodies must be consulted: The (.ouncU of in.lustrv and commerce, the mining council, the superior councU for public works the superior committee for railroads, the council for forestrjr, the ofkbor "^ "*™'' ^** ^ ^" '^^^^ *^" ^"P^""'- ««"''"1 In addition, the employers' compuISory mutual accident insurance associations are permitted to include in their constitutions provisions for prevention of accidents. INSPECTION.-For the purpose of enforcing compliance with the requirements concerning insurance and prevention of accidents the ministry may avail itself of the services of the factory inspec tore min- ing inspectors, and the inspectors and engineers of the minUtries of pubhc works and of the marine, as weU as of the technical employees of the societies for prevention of accidents and the employee' mutual accident msurance associations and the ins,)ectora of the National Accident Insurance Institution. Special officer may be detailed for inspection m connection with the work. Peraons intrusted with inspection of industrial establishments are prohibited from having any direct or indirect interest in any indus- trial undertakmg, or from being employed by such private establish- ments m the capacity of engineers, chemists, or physicians All establishments and undertakings must be regularly inspe<-.ted at least once m two years, and special inspections may be ordered by the mmister or by the prefect at any time. The inspectors must ascertam whether the preventive regulations and the insurance requirements have been comphed with. They have the right to Tisit the establishments, to question the employers, the supervising employees, and workmen, and to inspect the general and individual wage books, the insurance contract, and all necessary documents rhey must make reports to the ministry, making the necessary obser- vations and recommendations, and certifying to any infringement of the aw and regulations. A copy of the report must also be sent to the local judiciaiy authority and to the prefect. The report must be signed by the employer, or by his representative and the mspector ine employer may state his explanations. Compulsory mutual accident insurance associations must organize an independent inspection service over the establishments subject to Its juns^ction. Its inspectors may apply to the poUce for assistance m case they are hmdered in their work, and the employee must not place any obstacles m the way of their work, under penalty of a fine of from 20 to 300 Ure ($3.86 to $57.90). j- » » uae oi CHAPTER VII. workmen's INSURANCE IN ITALY. 1733 GENERAL PROVISIONS. Ail agreements waiving whoUy or partly the benefits conferred by this act are nuU and void. Indemnities or annuities paid under this act are not subject to cession or seizure. All claims under this act must be made within one year from the date of the accident. All contracts and legal documents executed in compliance with the requu-ements of this law are free from stamp dues, insurance taxes or similar taxation. APFLICATIOIT OP THE LAW. Voluntary insurance of workmen against accidents has been prac- ,««f "WvuT^ *^! Nftional Accident Insurance Institution since 1883 With the establishment of the compulsory system of insurance the functions of the national insurance institution were greatly enlarged. New tariffs were prepared, to provide for insurance in compliance with the requirements of tlie law, though the old tariffs remamed m force for voluntary accident insurance. But private msurance companies rapidly went into the field in competition. Four private accident msurance companies qualified toward the end of 1898, and one m 1899. The other forms of insurance provided by the law did not grow in populanty under the old law of 1898. Only four employers' mutual accident insurance associations were organized under this law. One of these, the so-called "Subalpine Syndicate," was estabUshed in Tunn and approved November 30, 1898. By its constitution this ™!r]r r", ^"*!»»T'1**' ^•'"^P* employers of aU industries covered by the law m the Provinces of Turin, Alessandria, Novara, and Com. It began its operations in December, 1898, with 333 members and about 19,000 employees insured, and by 1899 the number of members increased to 600 and the number* of insured persons exceeded 30,000. « J^? ;^"*y»* \^°"ftion of mine operators, oi^anized in Sardinia "tlX The' ^^'f' ,1^' ^'^ - t«"i*<>rial limitations to its 25 Tgoo S ''T'c*"''' "Legure," in Genoa, was formed January ments in fl,^ ^^^ I °'''?'^''^' ^""^ *" **^^^ ^«^« >«^g« ««tabUsh- T21T "" *°? "*""' industry. Its constitution admitted aU enterprises except the manufacture of explosives. The associa- :::aitSdiS:ut:^tr%r"r7f^^^^^^ members ^nA^t^TrZefe^Xyl^s ^'^ '^"''^ ''' one i^'^FWen;?^^^ ""T '''^T'"^ '"^ '^^^ *^^« cooperative funds- com;^wT:;xror«*'V*"'* ^^^ ^^p^^*^""'- '^^^ '- p^'--^- p ismg a number of Sicihan wme manufacturers; and one in 1734 REPORT OP THE COMMISSIONER OF LABOR. VercelH, with 88 smaU, misceUaneous manufacturing establisliments employing 552 workers. Finally, 10 independent cooperative funds ^,000. The largest among these were the fund of a shipbuilding con- roS'/nf^'T''"' ^''^ ^'?^^ employees; the fund of subsidiary raU- roads, of Sardinia, msured 1,655; the fund of a large lin.-n-goods fac- tory, in V.cenza, with 1,681 employees; the fund of a machine shop m Milan, with 1,237 employees; and a pa,,er and printing estabS ment, in Florence, with 710 employees. Few of these private benefit unds were organized in 1899, but most of them liad exited for some time before the adoption of the law of Mar.], 17, 1898, and had sim^ appbed for recogmtion under the law. The am;ndm;nt of treTwin 1903, by extending the scope of the application of the law and the raising of the prenuum rates of the National Accident Insurance In ^ tuhon, stimukted the formation of employers' mutual associations and private benefit funds. In 1904 three voluntary mutual association were organized in Genoa, of which one included the works tZ mantmie port and one the seamen of that port. An employed compulsory mutual association for the sulphur mines of Sicily wTs established in the same year. Three more voluntary associatiZ and the compulsory association for insurance of seamen were es X hshed m 1905, and two voluntary ones in 1906 Three cooperative benefit funds were oiKanized in 1904, three more n 1906, and one early m 1907. Within the same period 12 private funds were formed, 3 in 1903, 3 in 1904, 5 in 1906, and 1 early iSm? The most important of these are the funds of street raUway employees in Florence and Naples, organized in 1903. Altogether, accordinrto qnytwr" i^^urance institutions brought up to February 28, Inst tution, 7 private insurance companies, 12 employers' voluntaiy mutual associations 2 employers' compulsory mutual association^ 10 cooperative benefit funds, and 22 private benefit funds. GENERAL STATISTICS. Unfortunately, the statistics of the activity of these various insur- ance institutions in Italy are very meager and fragmentary, and any- thing hke a complete and up-to-date account of them is quite impos- A statistical report concernmg the appJcation of the law for the tZlZZT.Tl '■ '""^^ ^««^^b«^ -^1' 1899. was published early in 1 901 . (») Later reports concerning aU the accident insurance institutions were published in 1906.(') Keports for more recent " Bollettino di Notizie sul Credito e sulla Previden.a, February 1907 v 196 * Bollettmo di Notizie buI Credito e sulla Previdenza, Vol. ^X iZ ' d 1^ c Bollettino di Notizie sul Credits e aulla Previdenza; Au^t'lm pp.'ls'f-HW. CHAPTER VII. — workmen's INSURANCE IN ITALY. 1735 years were pubKshed in the official organ of the Office of Credit and Savings Institutions. («) Keports concerning the statistics of acci- dents alone are available for the second half of 1904, for 1905, and for 1906, but these do not contain any information concemi^ other results of the insurance system. Very little is known concerning the effects of the amendments to the law. Besides, these reports are very fragmentary, so that even the total number of persons insured is not stated. (^) On December 31, 1899, 28,307 industrial estabhshments carried accident insurance, but for 20,459 establishments only was the num- ber of employees known, which aggregated 1,050,763 persons On December 31, 1900, the number of establishments carrying insurance was 36,020; the number of persons insured in 31,788 establishments was 1,272,592. (*=) In the report of the commission of the Chamber of Deputies con- cerning the ministerial proposal of Mareh 13, 1908, the number of persons msured is stated as follows: For the year 1903 869 874- 1904 937,570; 1905, 1,089,086, and for 1906, 1,106,256 These' totals are so low m comparison with the reports of the earher years that some doubt as to their accuracy exists. As a matter of fact data from only one private insurance company out of seven are available for 1903 and 1906, and for two only for 1904 and 1905. ^ a^BoUettino di Notizie sul Credito e sulla Previdenza, September-October, 1908, b Many fragmentary but valuable statement, may be found in the reports which Dr. Vmcenzo Magaldi, Chief of the Bureau of Credit and Social InsuTcT Tf tt fr/^P .^^--Iture, Industry, and Commerce (IMrezione Generate M ^e^Z e della Frev^enza, Min^tero di Agricoltura, Industrie e Commercio) periodiX furnishes to the international congresses of social insurance, and which C be con ^dered sennofficial, as the supervision of these institutions is intrusted U>X^ h^Z Fmally, Doctor Magaldi's two studies of labor insui^ce in Italy, publish^Tn Ctor Zacher's well-known series in 1905 and 1908, contain some LLic^l Tn orma^iln which could not be found in the publications either of the Bureau of CreTand I^o^dence (Iv^pettorato Generate del Credito e delta Previderaa) or of the bL^u of Labor and these data have been made use of in the following brief review cT cerning «ie activity of the National Accident Insurance Instifution Z^ sI'tisH?.!i information available is much more complete institution, tiie statistical Accid7n"f Ti^vf-^ 'Tr^'r ''^"'' P^" ^- ^^^^^ (^-^-^ International dee Accidents du Travail et des Assurances Sociales, Dusseldorf, 1902, p 681) 67725°— VOL 2—11 16 1736 EEPOET OP THE COMMISSIONEE OF LABOR. No complete official record of the distribution of the total number of insured workmen among the various insurance institutions is available, the data for 1903 to 1906, published by the parliamentai? fXwr°''' °^ *'l'^"«d>y ^ery in,omplete. These data are L NUMBER AND PER CENT OP INSURED WORKMEN IN ITALY, CLASSIFIED BY KIND OF FUND OR ASSOCIATION, 1903 TO 1906. Workiueu insured in the year - Kind of fund or association. 1903. 1904. 1905. 1906. Number. Per cent. Number. Per c^nt. Number. Per cent. Number. Per c«nt. National institution. . 421,363 352,298 62,793 18,539 14,881 48.5 40.5 7.2 2.1 1.7 370, 198 443,990 83,191 24,734 16,457 39.5 47.3 8.9 2.6 1.7 373,876 514,464 150,687 28,346 21,713 34,3 47 2 13 9 2 6 2 407,859 447,654 1H9,587 35.662 35,494 Private companies . . 36 9 Mutual association. . 40 5 Cooperative funds 17 1 Private funds 3 2 Trt+ol 2.3 1 otai ^ 869,874 100.0 937,570 100.0 1,089,086 100.0 1,106,256 100.0 The data indicate mainly a steady growth in the popularity of the mutual accident insurance principle. The figures for the cooperative IZtir Ki r**!,,^ "^T^^ growth, the number of insured having almost doubled within three years. The following table, constructed from the various reports of Doctor Magaldi, shows the number of accidents compensated by the various groups of insurance institutions, and therefore gives indi- rectly an idea of the comparative importance of these institutions: NUMBER AND PER CENT OF ACCIDENTS COMPENSATED BY EACH KIND OF INSURANCE INSTITUTION, 1899 TO 1905. ^ ^'l^:''l^-&^^TSft^sir^t^^^^ Paris, ,900; Dui^,. del Lavoro, Vol. Ill and Vol. VII.] Previdenza, August, 1906; Bollettino dell' UfflSo Kind of fund or association. Nov. 1, 1898, to Dec. 31, 1899. National institution Private companies Employers' associations Private and cooperative funds Railroad funds Total CHAPTEB VII.— workmen's INSURANCE IN ITALY. 173? The most important indication of this table is the gradual decUne m the relative importance of private insurance and the growing im- portance of the state insurance principle (in the National Accident Insurance Institution) on the one hand and of various mutual organi- zations on the other. Assuming that the number of accidents Com- pensated IS fairly representative of the number of persons insured neither mutual employers' association nor private funds showed a very extensive activity in the eariier years of the application of this law, as they did not claim more than 5 or 6 per cent. The employers' associations showed a tendency to grow. For the later years it is fr^m throttr^'^f ' *^^'«-«.'^*!-t« tte activity of private funds trom that of the employers' associations; but together these orivate and cooperative efforts show a considerable development, parfly due m 1:^1'"' of obligatory mutual employed assail " Ihe growth of thenational institution has been very rapid the slight decline in 1 905 being due to the formation of the SicUiL Sulphur m£ Mutual Accident Insurance Association, since the insurance ZtZ mines had been carried previously almost exclusively by the nit oS institution. In 1899 only one-fifth of aU accidents was comperlr^d by this institution, and in 1904 two-fifths compensated wS KTX^"^ '"' the expense of the private insurance companies which m the beginning claimed over 70 per cent of the insurance as the employers hurried to comply with the requirements of the kw bu gradually ost, the employers being attracted by the lower rat^ of the national institution. In the following table the accidents compensated by each woun of insurance institutions are classified accorLg to the t:rSSoT o the injuries sustamed, whether in death, permanent disability or temporary disability. Only for the years 1899 to 1901 are these daU S not Lt'h'T *'' r "■ '''' '""^ ^•^•'"'^-^^ ^^y •>« thus clSiied! but not for each class of insurance institutions separately. 1738 KEPORT OF THE COMMISSIONER OF LABOR. NUMBER AND PER CENT OF COMPENSATED A( CIDENTS RESULTING IN DEATH PER- MANENT DISABILITY, AND TEMPORARY DISABILITY, BY KIND OF INSURANCE INSTITUTION, 1899 TO 1902. liNauKAiNUJS ^^S^i9S2•TonPt?hlT'H^"?JSi,1f ^'^.^^^°•^ ^^^ travail et des Assurances Sociales, Paris, 1900; Dussel- del La^or'of vir^^^^^ ^'^^'^ ® ^"^^ Previdenza, August, 1906; Bollettino deli' U^o Accidents . resulting lit— Year and kind of fund or associa- Death. Permanent disability. Temporary dis- ability. tiou. Com- plete. Partial. Total. Total. Num- ber. Per cent. Num- ber. Per cent. Number. Per cent. Nov., 1898, to Dec., 1899. National institution 159 361 8 5 55 1.3 .9 .8 .8 1.7 345 1,164 51 14 74 2.8 2.8 5.4 2.3 2.4 11,663 40,151 885 95.9 96.3 93.8 Private companies 12, 167 Employer's associations 41,676 Private and cooperative funds. . . 944 603 Railroad funds 6,\jW vo.v 3,129 Total 588 1.1 1,648 2.8 56,282 96.1 58,518 1900. National institution. 153 324 27 5 50 1.0 .9 1.1 .5 1.6 9 8 1 1 7 529 1,605 86 40 72 638 1,613 87 41 79 3.4 4.4 3.7 3.9 2.4 14,824 94.3 Priv ate companies ... « 15,726 Employers' associations . . 34,356 y4. 7 36,293 Private and cooperative funds Railroad funds 2,238 1,007 3,180 yij.z 95.6 96.1 2,352 1,053 3,309 Total 559 1.0 26 2,332 2,358 4.0 55,605 ! 94.7 "58,733 1901. National institution 279 209 31 7 46 1.3 .6 1.2 .6 1.3 10 3 ....„ 1 895 1,627 106 32 101 905 1.630 106 35 102 4.1 4.4 4.3 2.9 2.8 20,837 35,178 2,334 1,148 94.6 95.0 94.5 96.5 Private companies 22,021 Emplovers' associations. . 37,017 Private and cooperative funds. Railroad funds 2,471 1,190 3,448 95.9 3,596 Total 672 .9 17 2,761 2,778 4.2 - . _ 1 62,945 1 94.9 1 66,295 1902. Total (6) 505 .8 39 2,868 2,907 4.6 59,957 94.6 63,369 a Including 211 accidents the results of which were unknown Data by accident insurance institutions are not available. A comparison between the premiums paid to the insurance institu- tions, the compensation paid by them, and the wage expense of the employers throws some light upon the cost of the accident insurance system. The amount paid in wages was not stated prior to 1901, so that the comparison of premiums, compensation, and wages can be made only for 1901 and 1902. For 1903 to 1906 the data are so fragmentary that they are omitted from the table which follows. CHAPTER VII. workmen's INSURANCE IN ITALY. 1739 AMOUNT OF COMPENSATION AND PREMIUMS, COMPENSATION AND PREMIUMS m Year and kind of fund or asso- ciation. Nov., 1898, to Dec., 1899. Wages of workers. Compensation. National institution Private companies Employers' associations. Total. Private funds. Grand total (a) 1900. Paid be- fore Dec. 31. $188,793 327,076 16,970 Due but notpaid on Dec. 31. National institution Private companies Employers' associations. Total. Private funds . . Railroad funds. Grand total. 1901. National institution Private companies ] Employers' associations! Cooperative funds f 14, 703 183,423 Total. 1203,496 510,499 16,97C Per cent of wages. Premiums paid, com- i pen- sation Per ,i?.P«»" Amount. $279,823 713,915 25,129 cent of , wages. cent of pro- mi- uras. 72.72 71.51 67.53 147,488 328,260 37.029 512,777 Total. Private funds.. Railroad funds. Grand total. 1902. National institution Private companies ...'... Employers' associations Cooperative funds Total. $2.5,495,077 58,221,017 6,037,116 605,55? 108.420 235.365 353,744 255,908 563. G25 46,988 866,521 31,423,779 65,484,573 6,861,861 583,329 415,029 309,834 27,094 2,899 150,579 16,219 315 415,029 460,413 43.313 3,214 Private funds.. Railroad funds. 520, 137 258,961 33,425 3,808 218. 159 11,127 111 520, 137 477, 120 44,552 3,919 1.62 .79 .72 .53 298,610 662,617 44,744 1,005,971 85.70 85.06 105.02 86.14 372,624 567,826 51,840 6.071 1.46 .98 .86 1.00 111.38 81.08 83.55 52.94 L66 .73 .65 .67 583,958 646.715 61,928 17.965 1.86 .99 .90 3.06 Grand total 121,847,J 89.07 73.78 71.94 21.81 The 915,108 232,135 1,147,243 j .94 j 1,310. 566 1.06 87.54 a Exclusive of railroad funds. per cent TnlQm Vfnl ^'^'^'''^^ «« ^ages is shown to be 0.96 Lcurate L! ^nd 1.08 per cent in 1902. Tliisis not altogether paid Th^ n ? ti»%Private and railroad funds no prenuums are Private^unds r'^ "^'f 'Z f' ''"''' *^°^ ^'^^ '^^'' ^-^^Pting the CpicentaL ,-T °^"^ ^"°'^'' "'■" '-^^ ^^'l l-26> respectively. ra es'^roptfo "t£f 'Z '^' J^'^'^'^-^ institution, which corrobl opmion that the industnes with the highest risks are insured 1740 EEPORT OF THE COMMrsSIONER OP LABOR. in this institution Altogether, however, the accident insurance sys- tem as estabhshed by tl»e law of 1898 did not cost ItaUan industries much over 1 per cent of the wage expense during 1898 to 1902 As the amendments of 1903, embodied in the codified text of 1904 made somewhat more liberal provisions, the .;ost is now considerably higher In fact the data for 1903 to 1906, though not very accurate, seem to indicate an increasing cost, which in 1904 amounted to 1.56 per cent in 1905 to 2.12 per cent, and in 1906 to 2.19 per cent. This comparatively low cost of the accident insurance system in the earber years is explained by the very low average amount of the compensation. From the two preceding tables and the estimates of Dr. Magaldi, quoted below, the foUowing statement has been com- piled : NUMBER OF ACCIDENTS COMPENSATED AND TOTAL AND AVERAGE AMOUNT OP INDEMNITY PAID, 1899 TO 1905. Year. 1899 (o) 1900.... 1901 ... , 1902.... Acci- dents compen- sated. 55,389 68.733 66,295 63,369 Indemnity paid. Total. $738,621 979, 543 1,033,636 1,147,243 Aver- age. $13.34 16.68 15.59 18.10 Year. 1903 1904 1905 Ac« i- dents comi ken- sated . Indemnity paid. 73.704 121,654 156,215 Total. $1,286,948 1.951,572 2,558,732 Aver- age. $17. 4ft 16.04 16.38 a Not including the railroad funds. Thus the average amount of compensation per case, while increasing quite rapidly, amounted in 1902 to only $18.10, and in 1905 to $10.38! this including all cases. A general average like the above has a limited value. Of greater importance are the averages for tlie four main classes of accidents those resulting in death, complete permanent disability, partial per- manent disability and temporary disabUity. In such detail, 1 na^ea 865 to 881. ' ^^ CHAPTER VII. workmen's INSURANCE IN ITALY. 1747 provincial and communal governments, or by private persons by franchise from the Government, must insure their employees in the national mstitution. As far as obhgatory insurance is concerned, the general provisions of the accident insurance law apply. Voluntary insurance against accidents may be contracted for by any industrial or agricultural estabhshment in the country. According to the decree of November 22, 1888, all workmen who reside within the Kingdom and who have reached the age of 9 years may be insured. According to the agreement of 1883 the minunum age was 10 years. The blind, deaf, mute, epileptic, and msane are excluded, as a rule, though the executive committee may permit the msurance of deaf, mute, or blmd. Epileptics may be insured only m the collective form and persons over 70 years of age only m the individual form. ^ . ^.^^f. ^^^ beginnmg of the operations of the national insurance institution It has insured against the results of industrial accidents namely, death, total or partial permanent disabihty, and temporary disabihty. Each insurance poHcy may or may not include the latter separate schedules of rates being provided for insurance which mcludes temporary disabihty benefits. BENEFITS. f„,^/^fi T^.^^ organization of the national insurance institution for the first 15 years of its existence was based upon the principle of voluntary msurance, no fixed amounts of compensation couJd be estabhshed, the determmation of the amounts being left to individual contracts and depending upon the insurance premimn paid, as explamed m a later section. f u, as The foUowing stipulations were made in regard to the payment of compensation. In case of death, the whole amomxt of insurance was paid to the legal heu^. Of permanent disabUity, three degrees were recognized First degree: Total permanent disability, incFuding the OSS of both eyes, both arms, both hands, both feet, one arm and one hand, one hand and one foot, or incurable mental disease. For such disability the payment of the full amount of insurance wa^ granted Second degree: Permanent disability, reducing the earning capacity one-half or more, mcludmg such injuries as the loss of one arm or hand or one leg or foot, or such mental disease as does not altogether disqualify the person from employment. Tliird degree: WTien the uijuiy IS not as serious as in the preceding degrees, but yet lea4 7.15 vn Lire. 2.40 3.23 4.06 4.88 5.66 6.44 7.23 7.94 3.75 4. 4.41 5.07 6.72 6.a3 6.94 7.56 8.10 VIII Lire. 2.99 01 03 04 00 97 8.92 9.80 6. 6. 7. 7. 8. 9. 10. 54 37 20 02 79 56 32 00 IX x Lire. 3.60 4.85 6.10 7.35 8.51 9.67 10.83 11.90 Lire. 4.80 6.50 8.20 9.89 n.46 13.03 14.59 16.03 5.67 6.66 7.65 8.64 9.54 10.4414. 11.34 15. 12.15 16. 7. 9. 10. 11. 13. 97 28 58 88 05 22 39 43 XI Lire. 7.20 9.69 12.19 14.69 17.00 19.32 XII XIII Lire. 10.80 15.46 18. 12 21.77 25.19 28.61 21. 64 32. 04 23.77 35,22 11. 13. 15. 17. 19. 20. 22. 24. 34 16. 32,19. 30,22. 28 25. OS '27. 8s 30. 68 33. 30 35. 02 79 87 Lire. 14.40 19.21 24.02 28.84 33.37 37.91 42.44 46.6 00 20. 60 24. 28. 02 32. 36. 56 40. 34 44. 47. XIV Lire. 18.00 23.97 29.95 35.91 41.56 47.21 52.84 58.10 •25.33 .39 35. 45 40.50 45.23 .96 00154.68 44 59.08 69 30. 72 76 51 26149 The new conditions imposed by the accident insurance law upon the National Accident Insurance Institution necessitated the unm^ diate preparation of a new premium tariff to conform with the cost of msurance under the new law. As the law of 1898 did not cover all industrial establishments and did not altogether destroy the oppor- tumties for voluntary insurance, the old tariffs remained in force and 1754 REPORT OF THE COMMISSIONER OF LABOR. > a new tariff of rates (tariff F) was added for insurance in compliance with the requirements of the law. Tariff F, shown in the table fol- lowing, includes rates for insurance with employers' liability (com- bined collective insurance) and without such liability (simple collective insurance). Somewhat higher rates are also quoted in case the employer desires to grant for temporary disability a somewliat higher daily allowance than one-half of the daily wages as provided for by the law. The tariff was approved by the executive council of the insurance institution on September 10, 1898, and by royal decree of October 30, 1898. It was preliminary in its character, not being based upon any very exact data. The old classification of industries and occupations was preserved with only a few changes, which were all, however, in the nature of transfers from a lower to the next higher risk group. The tariffs are seen to be higher than the highest rates quoted in the highest tariff of 1888 — that providing com])ensation of 1,000 times the daily wages for death. But, nevertheless, the premium securing all the forms of compensation guaranteed by the law of 1898 amounts to less than 1 per cent of the wage expense for the first seven risk groups. It is less than 2 per cent in Groups VIII, IX, and X, and only in the Groups XI to XIV does it rise to a very high level. ANNUAL PREMIUM RATES PER 1,000 LIRE ($193) OF WAGES PAID, FOR INSURANCE ACCORDING TO THE REQUIREMENTS OF THE LAW OF MARCH 17, 1898, AND ALSO FOR AN INCREASE OF AMOUNT OF COMPENSATION FOR TEMPORARY DISABILITY (TARIFF F). [Source: Maurice Bellom, Les Lois d' Assurance Ouvri^re k rEtranger. n. Assurance contre les Acci- dents, 4 »"«°e partie. For benefits covered by the premliuns below, see p. 1753. J Form and amount of Premium rate per 1,000 lire ($193) in risk class— insurance. I n ni IV v VI VII VIII Lire. 11.48 11.81 12.13 12.46 12.07 12.34 12.60 12.85 IX Lire. 13.93 14 35 14 74 15.12 14 70 15.03 15.33 15.63 X XI Xtl Lire. 41.26 42.48 43.62 44 76 43.21 44 21 45. 13 46.06 XIII Lire . 54 68 56.28 57.79 59.31 57.01 58.36 59.61 6a 86 XIV Simple collective insurance, with temporary disability benefits amounting to— 50 per cent of daily wages. 60 per cent of daily wages. 70 per cent of daily wages. 80 per cent of daily wages. Combined collective insur- ance, with temporary dis- ability benefits amounting to- 50 per cent of daily wages. 60 per cent of daily wages. 70 per cent of daily wages. 80 per cent of daily wages. Lire. 4 19 4.32 4.43 453 4 31 443 4 52 4 61 Lire. 460 4 74 4 87 499 4 82 4 94 5.04 5.14 Lire. 5.43 5.60 5.75 5.90 5.66 5.80 5.93 6.05 Lire. 6.37 6.56 6.73 6.91 6.66 a82 6.% 7.10 Lire. 7.31 7.52 7.71 7.91 7.65 7.83 7.98 a 14 Lire. S.23 8.47 8.70 8.92 8.61 8.81 8.99 9.18 Lire. 9.29 9.57 9.83 iao9 9.79 10.01 10.21 10.41 Lire. 18.76 19.33 19.85 20.37 19.96 20.39 20.78 21.17 Lire. 27.83 2&67 29.44 3a 21 29.40 30.06 30.66 31.26 Lire. 6&08 7a 07 71.95 73.84 7a 84 72.52 74 10 75.67 1 The rates quoted above were preliminary, and the administration of the National Accident Insurance Institution was ordered to pre- pare a new schedule of premium rates within two years. On Novem- ber 1, 1900, this time was extended to October 20, 1902, and on September 6, 1902, again extended to December 31, 1903, in view of the preparation for the amendment of the law.(®) The new tar- fl Bollettino di Notizie eul Credito e sulla Previdenza, 1902. CHAPTER VII. — workmen's INSURANCE IN ITALY. 1755 iffs were finally approved by the superior council of the institution on November 28, 1903, and by royal decree on December 3, 1903. Accompanying these new premiums is a new set of regulations con- cerning premiums and compensation. According to these new regulations, the following six forms of insurance are written by the institution, which are essentiaUy the same as in the past. A. Combined collective insurance according to the law as amended and inclusive of employers' Hability. B. Simple coUective insurance according to the law, but exclusive of employers' habihty. C. Combined collective insurance for a stipulated rate of com- pensation and including employers' Habihty (for industries not cov- ered by the law). D. Simple coUective insurance for a stipulated rate of compensa- tion but exclusive of employers' Habihty (for industries not covered by the law). E. Individual insurance according to the law and exclusive of employers' Habihty. F. Individual insurance for a stipulated rate of compensation. As a rule, to which specific exceptions may be made bv the insti- tution, the coUective forms of insurance embrace aU workmen employed by the establishment who come under the provisions of the laws of March 17, 1898, and June 29, 1903. But simple coUec- tive msurance may also be taken by a workmen's mutual benefit society. AU coUective insurance must complv with the general conditions of the poHcy as approved by the minster of agriculture industry, and commerce. The conditions of the individual poHcv are prepared by the superior council of the institution, conforming as far as possible to those of the coUective policy. The premium rates were radicaUy changed bV the new tariff \ general increase Was found necessary because of the gradual rise in tae number of accidents compensated. Besides, the twentv vears' experience of the institution permitted a more careful classification ot mdustries and occupations according to then- accident risks instead of 14 groups, the new tariff presents 32 groups. In the table foUowing are presented the two basic tariffs, A and D for the '^f^^fr^J ""^ ^^^^^^^ «f insurance. Tariff A is quoted per 1,000 lire ($193) of wages paid and includes the legal insurance as weU as employers' habihty. Tariff D is quoted per emplovee, and cover, under the corresponding class of insurance the foUowing amounts of Z7('ZT'''' "" '^'' ^^ ^'"'^ ^^ '""'^^ permanent disabUity 1,000 dLabni^ev 1 !^ P^P^^^^^^^t^ a^iount in case of partial permanent Sf "^Ci A^-'" ^''•' ''""''^ P^^ ^^y ^^ '^^ -^ temporary dis- ability. Tariff A is practicaUy of the greatest importance 1756 REPOET OF THE COMMISSIONER OF LABOR. The premium under tariff B (that is, exclusive of employers* lia- bility) is obtained by reducing the corresponding premium under tariff A by 3 per cent. Insurance under tariffs C and D is intended for industries not cov- ered by the law. Premiums for this form must be quoted i)er per- .son per annum. If the compensations stipulated are identical with those required by the law, then the premiums imder tariffs A and B may be applied to the annual earnings of eacli employee. Tariff D is apphcable when the stipulated compensation is as given above. If it is desired to include the insurance of employers' Uability, 10 per cent must be added to these rates. If other amounts of compensa- tion are stipulated, the institution may quote different rates. For individual insurance the same rates are applied. The law defines the daily allowance for temporary disability as half of the daily earnings. If it is desired to increase this to 80 per cent of the earnings, the rate of the second higher risk gi-oups is apphcable for the first six groups, and the next higher group for the remaining groups. Eight-tenths is the normal maximum of the daily earnings insurable, though in exceptional cases nine-tenths may be stipulated; the daily allowance must not exceed 5 lire (96.5 cents), unless one-haK of the wages exceeds this limit. The other maximums estabhshed are: For death, 10,000 lire ($1,930), and for total permanent disabihty, 12,000 Ure ($2,316). ANNUAL PREMIUM RATES APPROVED DECEMBER, 19<»3, BY CLASS OF RISK. [Source: Bollettino di Notizie sul Credito e suUa Prevldenza, 1904. For benefits covered by the premiums below see p. 1755.] Pre- Premium per each employee. Pre- Premium per each employee. mium per mium per Risk 1,000 lire of Including com- Exclusive of Risk 1,000 Ure of wages paid (tariff A). Including com- Exclusive of class. pensation for compensation class. pensation for coini»ensatioii wages paid (tariff A). temporary for temporary temporary for tt'mt>orary disability (tariff D). disabiUty disability /-tariff D). disability (tariff D). (tariff D). Lire. Lire. Lire. Lire. Lire. Lire. I 2.50 1.00 SO. 19 LOO SO. 19 XVII... 26.00 8.40 SI. 62 6, .50 SI. 06 II 3.00 1.25 .24 1.10 .21 XVIII.. 30.00 9.60 1.83 6 00 1.16 Ill 4.00 1.50 .29 1.20 .23 XIX.... 35.00 10.60 2.05 6.70 1.29 IV 5.00 1.75 .34 L30 .25 XX 40.00 11.80 2.28 7.60 1.45 V 6.00 2.00 .39 1.40 .27 XXI. ... 45.00 13.00 2.51 8.50 1.64 VI 7.00 2.30 .44 1.60 .31 JCXII... 50.00 14.20 2.74 10.00 1.93 VII 8.00 2.60 .50 1.80 .35 XXIII.. 55.00 15.40 2.97 11,50 3.22 VIII.... 9.00 3.00 .58 2.00 .39 XXIV.. 65.00 16.60 3.20 13.00 3.51 IX 10.00 3.30 .64 2.20 .42 XXV... 75.00 18.00 3.47 14.50 3.80 X 11.00 3.60 .69 2.40 .46 XXVI.. 90.00 20.00 3.86 16.50 3.18 XI 12.00 4.00 .77 2.60 .50 XXVII. 105.00 25.00 4.83 19.00 3.67 XII 14.00 4.60 .89 3.00 .58 XXVIII 125.00 3L00 5.98 22.00 4.25 XIII.... 16.00 5.30 1.02 3.50 .68 XXIX -. 150.00 38.00 7.33 25.00 4.83 XIV.... 18.00 6.00 1.16 4.00 .77 XXX... 200.00 48.00 9.26 30.00 6.79 XV 20.00 6.60 1.27 4.60 .87 XXXI.. 250.00 60.00 11. .58 40.00 7.72 XVI.... 23.00 7.50 1.45 5.00 .97 XXXII. ,300.00 75.00 14.48 56.00 10.62 Note.— Tariff B may be derived from tariff A by a reduction of 3 per cent. Tariff C may be derived from tariff D by an increase of 10 per cent. In insurance forms £ and F tariffs B and D, respectively, may be used. CHAPTER VII. workmen's INSURANCE IN ITALY. 1757 The Hst of industries and occupations with the risk class under which each has been placed is given on page« 1758 to 1769. As is mdicated m the many notes, it is not absolute. Many conditions may be taken into consideration for the purpose of mcreasing the premium by placmg the mdustry or occupation in a higher risk group.' In addition to these specific qualifications, a general rule permits the increase or decrease of the premium under the foUowmg circum- stances : Increase of premium m case of use of mechanical or circular saws, use of motors or dangerous machinery, extensive use of means of transportation, work on scaffolds or stagmgs or in any other position m which falls are possible, work in place when coUapse of materials is Ukely, use of explosives, corrosive substances, com- pressed gases, mflammable Kquids, or other dangerous substances Decrease of premium m case of use of electric motors, especially for the purpose of dnvmg machmery; use of special and efficient safety appliances, or other conditions evidently reducmg the risk of the industry. Whenever several distinct processes differing as to then- degree of risk are combmed in one establishment, the premium may be com- puted m the foUowing way: The wage expense in each department IS multiplied by the correspondmg premium rate, and the sum of the products IS divided by the total wage expense. Where such computa- tion IS impossible, a simUar computation, based upon the number of employees m the various departments, may be made. Furthermore, the executive committee of the national insurance mstitution is permitted to add new mdustries to those in the list and even transfer mdustries from one risk group to another, upon txie basis of experience acquired. The institution is to write insurance asked for by any mdustry to which the law of obhgatory insurance applies, but may declme the insurance in case of industries not subject to the law if the risk appears unfavorable, because of the character of the persons to be insured, their age, or their condition of health, if they object to a sutticient mcrease of the premium. \\T^(^^T'''\ ^. •*^' ^'T^"^ ^' p"" ^^'^^' ^ ^p^^^^i ^^'^^^ ^^ two Zf :l r^^' 'V^^'^"^ "^"^ ^^^ P^^^^^' ^^^^ the premium does ^IT ,^5^^^(^9•^5); of 5 lire (96.5 cents) when the premium is fo L ^.^^.^^ r (^,?-^^l. ^^^ ^^^ ^«^« than 200 lire ($38.60) ; and of Hrp7A« Aof M ^^^'""'^ contracting for a premium of over 200 lire C$d8.60). No special charge is levied upon mdividual pohcies. 1758 REPORT OF THE COMMISSIONER OF LABOR. Finally a minimum premium is established for all policies. For the individual policies this minimum amounts to only 1 lira (19.3 cents), and for the collective policies the minimum is as follows: MINIMUM ANNUAL PREMIUMS FOR COLLECTIVE INSURANCE. For risk classes— Minim lun annual premium allowable. ItoV Lire. 5 M) 19 ao 30 40 BO $0,965 VI to X. 1.930 XI to XV. 2.895 XVI to XX. 3.860 XXI to XXIII 6.790 XXIV to XXVI 7 720 XXVII to XXXII 9.650 In the following table are shown the industries and occupations included in each of the 32 risk classes and for each class the annual premium rate in per cent of wages paid. The rates, which were approved in December, 1903, are for combined collective insurance according to the law as amended, including insurance of employers' liability. CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE OF RISK; AND PREMIUM FOR EACH RISK CLASS. [Source: Cassa Nazionale d' Assicurazione per gl' Infortuni degli Operai sul Lavoro . Regolamento dei premi e delle indennit^ e tarifle, 1903. For benefits covered by these premiums, see page 1755.] 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 AGRICULTXJRE, ANIMAL INDUSTRY, AND SILVICULTURE. Agriculture: Agriculture, with machinery, including the entire personnel of the estab- lishment («) Agriculture, without machinery, including the entire personnel of the establishment Steam plowing Macliine seeding • Machine mowing steam thrashing Steam pressing of fodder Steam chopping of fodder Tilling for hemp and flax with machinery Tilling for hemp and flax without machinery Drying rooms, with machinery Drying rooms, without machinery Engineers and firemen attending to steam engines used for agricultural work not mentioned in the tariff (irrigation, drainage, cleaning, and grinding of cereals, pressing, etc.), including accessory machinery when it does not present any special danger Hort ieulture, viticulture, gardening, and other work of a sim ilar nature ( b) Dissipating hailstorms Animal industry: Cattle raising, driving, and care of stock Poultry raising Silkworm raismg, with their removal from the leaves of the mulberry tree, and their transportation Silkworm raising, without the removal from the leaves of the mulberry tree, and their transportation XX XII XX XIV xX XXII XVIII XXV XVIII VIII xm IX XIX VIII XXVII XXI I IX 4.0 1.4 4.0 1.8 4.0 5.0 3.0 7.5 3.0 .9 1.6 1.0 3.5 .9 10.5 4.5 .25 1.8 1.0 I CHAPTER VII. workmen's INSURANCE IN ITALY. 1759 CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE OF RISK; AND PREMIUM FOR EACH RISK CLASS-Continued. In- dus- try num- ber. 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 flS 09 70 71 72 73 74 Industry. Annual premium rates in per cent of wages. AGRICULTURE, ANIMAL INDUSTRY, AND SU.VICULTURE— Concluded. Silviculture: Tree felling in the mountains (a) Tree fell ing on the plains ( 6 ) Trhnming and gathering flowers and seed and other work performed upon 1/116 trccs. -----.----,..-.......,_... Manufacture of charcoal, with chopping of wood! Manufacture of charcoal, without chopping of wood ...... . . , . . . . . , . . . . .' ', FOODSTUFFS, OILS, AND TOBACCO. Beverages, alcohols, and ice: Effervescent waters Mineral waters '.'.'.'.'. W ines ( c) ^ ...""" ""]."[] Breweries Manufacture of malt !.".!.!."!.]! Manufacture and refining of aicohol! .!"!.!.".!"'.""[. Manufacture of spirits, liquors, exclusive of the distiiling withmachinerv Same as above, without machinery Sirups Vinegar Artifacial ice .'.'...'..... Coffee and spices: Coffee drying and roasting, with machinery Coffee drying and roasting, without machinery ...".. Coffee substitutes, with machinery Coffee substitutes, without machinery Spices, pulverizing and grinding ". Liquors Mustard ]!!.!'!!.'.]!!! Milk and its products: Condensed milk, including manufacture of the cans. . Condensed milk, exclusive of the manufacture of the cans Milk, sterilization and modification Manufacture of cheese, including cattle raising Manufacture of cheese, exclusive of cattle raising, with machinery Manufacture of cheese, exclusive of cattle raising, without machinerv Slaughtermg and salting of meats: Pubhc slaughterhouses, including the entire personnel Salting meat, including slaughtering Salting, without slaughtering, with machinery Salting, without slaughtering, without machinery Flour grinding, rice polishing, baking and pastes: Flour-grinding mills, stationary Flour-grinding mills, floating Pounding rice Bakeries, with machinery ".["."" Bakeries, without machinery Manufactvire of wafers [[ Food pastes, with machinery ].""!"]' Food pastes, without machinery '. Vegetable and animal oils: Animal oils Vegetable oils in general, large establishments Vegetable oils in general, small establishments Vegetable oils in general, extraction of residual oils by means of sulphur Pastry bakmg, chocolate, preserves, and food products: Pastry baking and confectionerv, with machinery . . . Pastry baking and confectionerv, without machinery '. Chocolate and almond cakes, with machinery Chocolate and almond cakes, without machinery . . Preserves, including manufacture of cans Preserves, exclusive of manufacture of cans Prepared food products, with machinery Prepared food products, without machinerv . . Tobacco: Tobacco manufactures Sugar: Sugar factories and refineries a The premium may be reduced when the use of mechanical motors is limited. b If machinery is used the premivun must be increased. o With or without transportation. nfrlrf i^^^-^^J^*'"^ transportation; the premium may be reduced OGere sufficient ^arantee of security. motore."^^"™ ^^ increased if there is connected with it any transportation service or the in exceptional cases if XXVIII 12.5 XXVI 9.0 XX 4.0 XXVI 9.0 XI 1.2 XIX 3.5 XI 1.2 XI 1.2 XVII 2.6 VIII .9 XVI 2.3 XIII 1.6 XI 1.2 XIII 1.6 IX 1.0 XXII 5.0 VIII .9 III .1 X LI VI .7 XIII L6 X LI X LI XIV 1.8 X 1.1 X 1.1 XVI 2.3 XI L2 VI .7 XXIII 5.5 XVIII 3.0 XIV 1.8 XI 1.2 XVII 2.6 XIX .3.5 XV 2.0 XVI 2.3 VII -S V .6 XVI 2.3 VII .8 IX 1.0 XII 1.4 IX 1.0 XVIII 3.0 IX 1.0 IV .5 XI 1.2 VI .7 XV 2.0 VIII .9 XIV L8 VIII .9 II .3 XVIII 3.0 the transportation use of mechanical 1760 REPORT OF THE COMMISSIONER OF LABOR. CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE OF RISK; AND PREMIUM FOR EACH RISK CLASS— Continued. In- dus- try num- ber. 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 Industry. PAPER, LEATHER, GUMS, AND PKINTINQ. Risk class. Paper and cardboard making: W ood pulp Paper manufacturing, with machinery («) Paper manufacturihg, without machinery («) Cardboard with machinery (6) . Cardboard, without macbmery ( &) Papier-m&ch6, statuary pasteboard Manufactures of paper and cardboard: Colored paper and wall paper, with machinery Colored paper and wall paper, without machinery .... — ^ Paper, wax, oiled, parchment, sand, glazed, etc., with machinery Same as above, ^tho ut machinery - v ; ML LV Various manufeetures (boxes, envelopes, tubes, bags, etc.) with machin- ery ( c) Same as above, without machinery (c) Stationery and. bookbinding, with machinery Stationery and bookbinding, without machinery •-.--- Preparation of leather and manufacture of leather substitutes: Tanneries, with machinery Tanneries, without machinery -- - . — - ■ • Dyeing, glazing, and preparation of skins and leather, with machinery.. Same as above, without machinery Parchment Wax cloth Artificial leather Bark grinding mills Manufactures of skins, leather and substitutes: Footwear, with machinery Footwear, without machinery Gloves, with machinery Gloves, without machinery Saddlery , harness, and similar things, with machinery Saddlery , harness, and similar thmgs without machinery Tnmks and other manufactures of leather, with machinery Trunks and other manufactures of leather, without machinery India rubber, gutta-percha, and celluloid , manufacture of : Manufacture of fcidia rubber and guttarpercha, with machlnMT Manufactiu-e of India rubber and gutta-percha, without machinery.. . . Water-proof textiles Manufactures of celluloid Poly graphic arts: ,^^ ., ... Printing, lithographing, color printing, etc., with machinery W Same as above, without machinery (d) Engravers Designers and copyists Photographers CHEMICAL INDUSTRIES. Acids, salts, and other chemical products: Calcium carbide Distillation of coal tar - Cream of tartar - /- • — , ^ Wood distillation, exclusive of felhng and transportation of trees Sulphuret of carbon •- rhemical Droducts not specified in the tann: (A) Manufacture of corrosive substances (strong acids, caustic alkahes,etc). (b) Manufacture of various products , where corrosive substances are used . (c) Manufacture of various products without the use of corrosive sub- (d) Manufacture of pharmaceutical products Starch , dextrin , and albumen : , Starch and face powder, with macmnery Starch and face powder , without machmery Fecula ' Glucose, dextrin, and albumen Annual premium rates in per c«nt of wages. XV] I XIV VIII :xi IV XI XI in X lit XI Itt VIJI XIV XI xn vn XI VIII XI xvu VII III VI II VIT III VI n XIV VI X xni V II 11 t\ XV XVII IV XV XXIV XVIt XV XII IX XI vr vn xt 2.6 1.8 .9 1.2 .5 1.2 1.2 .4 1.1 .4 1 .2 .4 .9 .3 1.8 1.2 1.4 .8 1.2 .9 1.2 2.6 .8 .4 .7 .3 .8 .4 .7 .3 1.8 .7 1.1 1.6 .6 .3 .3 .25 2.0 2.6 .5 1.4 1.0 1.2 .7 1.4 1.2 a Th«» T>remimn is increased if it is combined with the manufacture of wood pulp. ? FvPl?isi^ KlraanuScture of wood pulp; otherwise the premiums for paper must be aijplied. with curcular saws. CHAPTER VII. WORKMEN S INSURANCE IN ITALY. 1761 .L { CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE OF RISK; AND PREMIUM FOR EACH RISK CLASS— Continued. In- dus- try niun- ber. 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 Industry. CHEMICAL INDUSTRIES— concluded. Glue and artificial fertilizers: Glue, with machinery (a) Glue, without machinery (o) Artificial fertilizers, with machinery (t>) , Artificial fertilizers, without machinery (^) i Dyestuffs and colors and varnishes: Dyestuffs and colors (animal,vegetable, and mineral), with machinery (c) Same as above, without machinery (c) Varnishes Blacking (exclusive of the manufacture of boxes) Writing ink Printing ink Explosives: Explosives in general (gunpowder, djmamite, guncotton, etc.) Pyrotechnics (manufacture and setting off of fireworks) Cartridges (manufacture and charging) Matches: Wax matches Wooden matches, including mechanical manufactiu^ of the splints. Wooden matches, exclusive of the mechanical manufacture ofthe splints, Illuminating gas and its products: Common gas, msinufacture and distribution , Acetylene, manufacture and distribution Coke Fats and their derivatives, soaps and candles: Fats in general (lubricants, tallow, margarine, artificial butter, etc.) with machinery Same as above, without machinery Stearin, with machinery , Stearin, without machinery '.'.'.'.'.. Glycerin, with distillation of fat Glycerin, without distillation of fat Soap, with machinery ] Soap, without machinery [[[[[[[[.[] Candles of wax and tallow, with machinery Candles of wax and tallow, without machinery ',[[] Stearin candles, with machinery Stearin candles, without machinery Petroleum, essences, ether, rosin, and asphalt: Petroleum refining Essences ....". Ethers ] " Perfumery Distillation of rosins ""]".[[] Sealing wax '/'[ Asphalt working, with machinery Asphalt working, without machinery CONSTRUCTION OF BUILDINGS, PUBUC ROADS, AND IRRIGATION WORKS. Laborers in various works: Unskilled day laborers in works not otherwise specified in the tariff, in- cluding transportation on rail or by animal traction and with use of blasting Same as above, exclusive of transportation and without use of blasting Building— Construction and repair of buildings (dwellings, factories, churches, towers, and accessory structures): (a) Work executed at a considerable height or with incomplete scaffold- ing or on roofs, cupolas, etc., or work mainly connected with tear- ing down, construction of towers, belfries, smoke-stacks, placing of ligntning rods, etc. . . , (b) Work executed altogether or mainly upon scaffolding or with freq uent use of blasting or with certain amount of tearing down of buildings. (c) Work executed only partly upon scaffolding, or in which blasting is used only exceptionally or with very little tearing down of buildings. (d) Work .n which special measures of prevention are applied, or such as is performed indoors on slightly elevated staging, without tearing down of structures or use of blasting, and general assistance in con- struction Framework and construction in wood '.'.'.'.'.' Pavements of wood blocks and of cement Construction of fireplaces inside of buildings Installation of gas fixtures, heaters, and water pipes Risk class. XI VII XII IX XIII IX XIV VIII V IX XXVI XXVIII XXVI vin XIV vni XI XVI XIV XIII XI XIII XI XVI XI XIII XI XI VII XIII VIII XIII X XIV IV XIII XI XV XI XIX XV XXIV XXI XVII XV XXII IX XI XV Annual premium rates in per cent of v.ages. 1.2 .8 L4 1.0 L6 1.0 L8 .« .6 1.0 9.0 12.5 9.0 .9 L8 .9 L2 2.3 L8 1.6 1.2 1.6 1.2 2.3 1.2 1.6 1.2 1.2 .S 1.6 .9 1.6 LI L8 .5 1.6 1.2 2.0 L2 3.5 2.0 6.5 2.6 2.0 5.0 LO 1.2 2.0 a Increase of premium if benzine is used for extraction of the fats. t> Increase of premium accompanied by production of sulphuric acid. e Increase of premium if use is made of grinding mills, corrosive substances or digesters. 1762 EEPORT OF THE COMMISSIONER OF LABOR. CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE OF RISK; AND PREMIUM FOR EACH RISK CLASS— Continued In- dus- try num- ber. Industry. 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 Risk CONSTRUCTION OF BtJILDINGS, PUBLIC ROADS, AND IBRIOATION WORKS— concluded. Painters, gilders, white washers, plasterers, vamishers, workers in mosaic, paper hangers, etc.: (a) On scaffolding and exterior of the buildings (also in t he inside of build- ings when staging is placed at great height) (b) On scaffolding on inside of buildings (c) In buildings or in shops, exclusive of all work on scaffolding Decorators, installation of special illumination, and of work executed on hand ladders or movable Kdders Hydraulic work and bridges: Subterranean aqueducts, construction and maintenance — (a) Including work in galleries or at a certain depth and with frequent use of blasting (b) Including work in open air or at a slight depth with rare use of blasting (c) Including work in the open air with superficial ♦'xeavations and without use of blasting Sewers, cleaning without pneumatic machines Sewers, cleaning with pneumatic machines Canal construction: (a) Work at great depth or subterraneous, with danger of landslides and with frequent use of blasting (b) Work at slight depth with rare use of blasting, not including trans- portation of the excavated material by tramways Canal maintenance Regulation of streams and water courses: (a) Work with use of blasting or in places subject to lanlasting (b) Work with moderate use of blasting and extraction tiiid with excavar tion of stone (c) Work without use of blasting and without excavation of stone (d) Other work presenting lower risk Personnel of lighthouses D i vers Pile driving Dredges, floating Dredges, on dry land Construction of common wells Construction of artesian wells, with machinery Construction of artesian wells, by hand labor Bridges, construction and maintenance: (a) Of iron (a) (b) Of wood (a) (c) Of masonry Public roads— Construction: (a) With tunnels and bridges of considerable magnitude, either because of tlie number or because of their length or elevation (b) With tunnels and bridges of certain magnitude, or w ith frequent use of blasting, or with excavation of material, mountain roads (c) With small tunnels and bridges, with exceptional use of blasting and without excavating work, level roads (d) Without tunnels or bridges, without blasting, with limited carting. Maintenance of ordinary roads, with carting Maintenance of ordinary roads, without carting Construction of tunnels ELECTRICITY. Installation of electric telephone and telegraph lines: Electric-power conduits or electric-light wires, installation and mainte- nance (&) Telephones, installation and maintenance, with work on roofs and poles.. . Telephone installation and maintenance, including stringing of wires on poles Telegraphs, installation and maintenance Annual premium rates in per cent of wages. XXI XV VIII XXI XXI XVII XI XXII XIX XX XVI XII XX XIV XVII XXVI XXIII XIX XV XXI XXIX XXI XXII XIX XXIV XXII XIX XX XIX XX XXV XXII XIX XVII XVII IX XXV XVI XXV XVI XVI 4.5 2.0 .9 4.5 4.5 2.6 1.2 5.0 3.5 4.0 2.3 1.4 4.0 1.8 2.6 9.0 5.5 3.5 2.0 4.5 15.0 4.5 5.0 3.5 6.5 5.0 3.5 4.0 3.5 4.0 7.5 5.0 3.5 2.6 2.6 1.0 7.5 2.3 7.5 2.3 2.3 olf use is made of compressed air the premium may be increased by one or two classes. The premium may also vary according to the magnitude of the construction work . b The premium to be increased if the work is to be performed with live wires, especially in case of a high- tension current. CHAPTER VII. workmen's INSURANCE IN ITALY. 1763 CLASSIFICATION OP ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE OF RISK; AND PREMIUM FOR EACH RISK CLASS-Continued. In- dus- try num- ber. 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 262 253 254 255 256 257 258 259 260 261 262 263 264 265 266 Industry. Risk class. ELECTRICITY— concluded. Production and distribution of electric energy: Electric power houses. (Also including installation of fixtures.). BRICKYARDS, POTTERY, AND GLASS INDUSTRY. Brickyards and manufacture of plaster and cement: Brickyards, machine manufacture. . . Brickyards, manufacture bv hand Brickyards, manufacture both by hand and machinery Gjrpsum (plaster of paris), manufacture of. ,, .Cement, manufacture of various materials (not indudine'extraction)" Majohca, porcelam, and earthenware: Awacuuu;... Majolica, porcelain, and earthenware. . Glass and mirrors: Glass, including production of plate glass. . Glass, without production of plate glass Glass beads Enamels ..."."]" Working up of glass "(grinding, polishing," chemical,' in whanic^^^ photographic engravmg) Glaziers, working on scaffolding Glaziers, working without scaffolding. .'..['. Mirrors, with production of plate glass. . . Mirrors, without production of plate glass..! WOODWORKING. Poles, sticks, umbrellas, and pipes: Strips of wood for cornices, with use of mechanical saws btrips of wood for cornices, without use of mechanical saws Canes, umbrellas, whips, and pipes, with use of mechanicarsaws" (a) o«« ^^^'."™^''^"^' whips, and pipes, without use of mechanical s&^'(a)'. Barrels, with machinery (a) Barrels, without machinery (o) Horn, ivory, mother-of-pearl, amber, etc.: Horn, ivory, mother-of-pearl, bone, tortoise shell, manufacture of. with machinery ' Same as above, without machinery! ! Amber, «oral, meerschaum, manufacture" of," with "machinery Aniber, coral, meerschaum, manufacture of, without machinerV Caijenters and cabinetmakers (performing work not included under aii'y" other' Carpenters and cabinetmakers, working with machinery (including cirou- Same as above (exclusive of circular saws) '. Carpenters and cabinetmakers, working witiioii't maciiin'e'ry Carpenters and cabmetmakers, working on scaffolding or stt^in'g Manufacture of Venetian blinds, with power saws Manufacture of Venetian blinds, without power saws Shoe trees and wooden shoes, with power saws Shoe trees and wooden shoes, without power saws Impregnation -of wood (6) Carving, inlaid work, wood turning, and otiier' delicate woodwork- Wood carvers and inlaid woodworkers Wood turners, using power saws Wood turners, without power saws ! Wooden ware and wooden toys, with machinerv Wooden ware and wooden toys, without machinery myons, pencil boxes, and similar office supplies . Manufacture of match splints, with machinerv Manufacture of match splints, without machinery . Wooden sticks Fans, with use of power saws !!!!!!!!!!!!!!! Fans, without use of power saws '. Sawmills and wood planing: Wood sawing (lumber, firewood, hard-wood flooring, staves) with use of power saws, including circular saws "^ "* Same as above, with use of power saws but exclusive of circular saws' tsame as above, with use of handsaws Planing XVII XVI IX XIV VI IX xrv IX VI VII IX XVI VII XIV VII xvni XIII XVII IX XVIII X XIV VIII V III XXI XVIII XIII XXI XX VI xvni X XIII IX XVI XI XV XI XII XV IX XIV XV vin XXIII XIX XV XVIII Annual premium rates in percent cf wages. 2.6 2.3 1.0 1.8 .7 1.0 .6 L8 1.0 .7 .8 1.0 2.3 .8 1.8 .8 3.0 1.6 2.6 1.0 3.0 1.1 1.8 .9 .6 .4 4.5 3.0 1.6 4.5 4.0 .7 3.0 1.1 1.6 a Premium to be increased if use is made of circular saws. thelys'teK'i^rT^lt^on"''''^'^"^ according to the danger presented by the substances employed 1.0 1.8 2.0 .9 5.5 3.5 2.0 3.0 and 1764 REPORT OF THE COMMISSIONER OF LABOR. CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE OF RISK; AND PREMIUM FOR EACH RISK (X ASS— Continued. 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 ■WOODWORKING— concluded . Cork, wicker, and brushes: Cork working Manufactures of wicker .."V.\[ .[[..]]]] Manufactures of rush products Brushes, with woodworking '.'.'.'.'.'.'.'. Brushes, without woodworking '.".!!".!!!'!! Whisk brooms and paint brushes, with use of power. V. . Whisk brooms and paint brushes, without use of power. MACHINEEY AND MECHANICAL WORK. Appliances for lighting, heathig, electricity, and exact instruments In general: Appliances for lighting, heating, hydraulic work, manufacture, and installation (a) Appliances enumerated above, manufacture but without Installation («•)! Scientific instruments and appliances (chemical, pharmat-f-utical, surgi- cal, mathematical, physical, and optical), with machinery (c) Same as above, without machinery ( c) Scales, weights, and measiu-es, with machinery ( c) ] Scales, weights, and measures, without machinery ( c) Ordinary timepieces Tower clocks, manufacture and installation (^j '.'. Firearms: Ordinary firearms, with machinery (<) Ordinary firearms, without machinery («) ! Artillery Shipyards: (a) Large establishments for construction of wooden and Iron ships, includmg machine shops .. b) Construction of wooden ships and boats, with power saws........ c) Same as above, without power saws ^d) Construction of barges, boats, etc., with power saws !!"!!!!!"' e) As above, without power saws (the repair work, calking, etc., shall be assimilated, accordhig to its importance and the mode and place of execution, to one of the preceding groups) Breaking up of wooden ships '. Breaking up of iron ships .."!"!!!!!!]!!!!!!!!! Dry docks, management (not including the repair of ships oir any work on boardship) Carts and carriages: Ordinary carts and carriages, with use of power saws Ordinarv carts and carriages, without use of power saws Railroad and tramway cars Musical instruments and accessories: Musical instruments not otherwise specified In the tariff, with machinery Same as above, without machinery Organs, pianos, harmoniums, with use of power saws !!!!!!!!!!!!! Organs, pianos, harmoniums, without use of power saws Harmonicas, with machinery ] ] ] ' Harmonicas, without machinery "....[[""[. .[[[[V. Musical strings, catgut '.'.'.'.'.'....,'.'.'.'. Musical strings, metal ""!!"!!!!!"!!!!!!!.!!" Machines and machine shops in general: Manufacture of boilers for industrial uses Demolition of boilers for industrial uses Agrlcultvu-al machinery Construction and repair of grinding milis, with use of pow'er saws Construction and repair of grinding mills, without use of power saws Automobiles (increase of premium If testing is included) Bicycles " Sewing machines and typewriters I"" """ ..["[[[" Pumps (with Increase of premium if work In wood Is Included) '.'. Weaving looms and other Implements for weaving Grinders and assemblers of machinery VIII V vn XVII vn XVIl Vll XII IX XI VII XI VII V X XV XI XVI 11 XXV XXI XIX XVIl XIII XXIX XXXI XV XVI XIII XVI II XII vni XVI XI XI V IV VII XXI XXIII XVI XIX XVI XVI XIV XI XIV XIII XIX Annual premium rates In percent of wages. 0.9 .6 .8 2.6 .8 2.6 .8 a If the work of Installation is done upon the outside of buildings or on scaffoldings or if use is power or of foundry work the premium must be increased. 6 If use is made of power or of foundry work the premium must be increased c Premiums are increased If use Is made of power saws. ** The premium to be increased If it is combined with work outside »if the towers, e With increase of premium If it is combined with the charging of cartridges 1.4 1.0 1.2 .8 1.2 .8 .6 1.1 2.0 1.2 3.0 7.5 4.5 3.5 2.6 1.6 15.0 25.0 2.0 2.3 1.6 3.0 1.4 .9 2.3 1.2 1.2 .6 .5 .8 4.5 5.5 2.3 3.5 2.3 2.3 L8 1.2 1.8 1.6 3.5 made of CHAPTER VII. workmen's INSURANCE IN ITALY. 1765 CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS, BY DEGREE OR RISK; AND PREMIUM FOR EACH RISK CLASS-Continuei. I 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 MACHINERY AND MECHANICAL WORK— Concluded. Machine shops: (a) For lai^e construction (^) For small construction, with machineiy (o) (c) For small construction, without machinery (a) (d) For repair, with machinery (o) (e) For repair, without machinery (o) METALS. XVIII XVI XIII XIII X ^°^mn^oi^®l&i^"^*^*^' ?°i«ltlng, and early manufacturing processes): Iron and steel foundries, large establishments "^;»«»cay. iron and steel foundries, small establishments, With machine!^ BlSSth^hi^^ ' ^^^ estabUshments, without machinery ! ! '. '. Forging hammers, large" establishments! '. Forgmg hammers, small establishments Iron and steel rolling XT -i^°° ^^ ^^^^ ^^^® drawing, hot. .'.'."." I yt v ^SSsT'' ^''''^'^^^ ""^ ^""^^ ^^ ^^^^ (smeitog aiid early in^ufacturlng' Smelting of various metals, large establishments s^« In! ^J various metals, smaU establishments, with m^hi^e^; Smeltmg of various metals, small establishments, without machmerv Rollme of various metals, large establishments. . . macnmery. . . Wire drawing, various metals, hot (exclusive of precious' metals) Wiredrawing of precious metals... "o^xcuua; Manufacture of tin plate Gold beaters, with machinery. Gold beaters, without machinery Gold and silver plate Metal |;rindmg ^ [][ Goldsmithing, silversmithing, jewelry: Sllversmithing, with machinery Silversmithing, without machinery. . Go dsmithing and Jewelry, with machinery ^oldsmithing and jewelry, without machinery ^ni?«v ^ fS? utensils, metal furniture and varioiis" micl^i Blacksmiths and locksmiths, working in iron and steel XXII XVIII XIII XIX XIX XVI XIX XV XIII X XIII XVIII VI XV X III VIII XIII not otherwise une as above, without machlnerv (6) .. Same Same as above, working on scaffolding or staging? V)" Knives, scythes, cutting arms, etc., with machlnerV ' Knives, scythes, cutting arms, etc., without machinery Files, rasps, and saws "*"ctor Metallic springs for vehicles or large maci^ery Metallic springs of small size.. Screws Horseshoers !!!!!"'.'"!! Iron furniture and safes', with machinery iron furniture and safes, without machinery Tff^mJjSf ' P^""^^'^' and zinc workers, in the shop," With' maishlnei^" ' ' w^T i^^' P'"^bers aiid zmc workers. In the shopVwlthout machSi^" Workmg on roofs, staging, or scaffolding (6) macamery. Brass working * Coppersmith manufacturing,' objects of iidm'e "use... Metallic pens Metal stamping and pressing",' wltii inacidnery .* Metal stampmg and pressing, without machinery. Cartridges, exdusive of charging Metal novelties and jewelry, with machinery Metal novelties and jeweh^, without machinery Needles and pins Screws and bolts Nails, with machinery Nails, without machinery. ..." Iron points Wire metal rope, and cables ....'. Metal netting, including wli« drawing X III rv III ou[tsTdl t^h^ machi^eYh^.*'"''^^** ^°' ^^""^ °' '°'^" construction ustag factory mL^aL°£i®**-^°'"^' t^^t ^S' 5"^^ as is performed partly In the shoo and mrtlv Suo^^FS"^ proportionate to the Importance of o^ratlSm^o^eS mlS^ XIV VIII XIX XIII IX XIII XVI XIII XI XIX XIV IX XVI XII XXIV XII XIV X XII VI X XI VII X XIV XII X XII XII XVI Annual premium rates in percent of wages. 3.0 2.3 L6 L6 LI 5.0 3.0 L6 3.5 3.5 2.3 3.5 3.5 2.0 L6 1. 1 1.6 ao .7 2.0 LI .4 .9 L6 LI .4 .5 .4 L8 .9 3.5 L6 LO L6 2.3 1.6 L2 3.5 1.8 1.0 2.3 1.4 6.5 1.4 L8 LI L4 .7 LI L2 .8 LI L8 1.4 LI L4 L4 2.S work and for repairs done on scaffolding, an Inter- under the two different oon- f 1766 BEPORT OF THE COMMISSIONER OF LABOR. CLASSIFICATION OF ENTERPRISES, INDUSTRIES, AND PROFESSIONS BY DEGREE CLASSIFICAT^ONJ^*^ Ji.^^^ PREMIUM FOR EACH RISK CLASS-Contmued. ^ Annual premium rates in per c«nt of wa^es. 373 374 375 376 377 378 379 380 381 METALS — concluded. implements and utensils, metal fumitare and various articles -Concluded. Metal netting, exclusive of wire drawing Type for printing Metal turners Metal chases ^'"^ aSingTnd'lSl^^inetals, with machinery («).-. PHnH SI and bo ishini metals, without machmery (a) IwfrpfatTnl'^oW&ng, nickel platin^^ Enameling metals Electric plating MINERALS. (6) 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 •'%g|totcS'T;^v'S,'sSr-cl coloring e^rtM Mineral fuels: . Hard and soft coal mmes Turf pits Metals* Metal mining, including smelting Kle?gi?ii?e7and porphyry, with inclmed plane Marble, granite, andjwrphyry, without inclined plane. . Lava, pozzolana, and tufa stone quames. ^"^^S^u'Shur mining, including working up of the mineral. Various minerals: Graphite munng Mica and barytes and magnesite quames Petroleum mining -- Rock salt mining Salt works Ice cutting v - : ■ • •," 'i\:i«».' >V\ Working up of the products of mining, (c) ^■"i^SfrfiCiffi^orSlSS'™^^^^^^^^ : Gravel, machine crushing ;■■•; __ Gravel, hand crushing Manufacture of emery -....- Crushing of stones and earths .. . XI IX XVI IV XIV VIII IX Xll V XVIII XIX XI XX XXIII XIX XXIV XXII XXIV XXIV xxn XXII XVItl XX XVI II XIX IX XIX L2 1.0 2.3 .5 1.8 .9 1.0 1.4 .6 3.0 3.5 L2 4.0 5.5 3.5 6.5 5.0 6.5 6.5 3.0 3.5 1.0 3.5 r^lere working upon scaffolding or staging pSpS: not worki^on scaffolding or stagmj.,-^.^..^- -_..;. and marble-c and marble-c ndmechanica Miiistones and grindstones. i?S?ISS SSd martr.E<=7t(rr;;workrni-on"^"*oldta^ <" "»«'°«- " ' -krnictnnnc and erindstones I XXI 4.5 XVII 2.6 XI 1.2 XVI 2.3 XIX 3.5 XXIII 5.5 XII 1.4 XVII 2.6 XX 4.0 XVIII 3.0 XV HI 3.0 XIV 1.8 XVII 2.6 XVII 2.6 XII 1.4 XIII L6 Slate and lava working Precious stone working a The premium to be increased i^ «^,jJ,f^thfslXSb^^^^^^^^ may be increased 6 For t^e classescomprised under the rst {« ^f si^^^suDgroups, j^'aterial and danger that several if the condition of work was unfavorable ^^omipnt use of exprosives: third, excavations not contmued persons might be crushed at once; f^S^^^^i^Sh ?arS size Sat lepth or ai^tivity of the mines or quar- Swjording to the regulations of V^^ ^^a^;tSor SofSffirnl t6ols; sixth, product ion of deleterious ties; fifth, dangerous methods oftransiwrtation^^ ^ ^ material (thecr.ishing of gravel, or ekplosive gases. The premium mayj^ reduced ii me wor^b^ ^^^ ^.^ the mines or roasting and pulverizing ores, saw^rf^fd^ Jen SSuS different classes. Still greater reduc- quarries, unless these processes ^^ve already been incnKieum^ ^^^ premium may also be tion may be granted f the work is I^rfonned ^^^^^^f ^^^Xalught that the entire danger of falling reduced when the extraction of the ore takes p ace ax ^"^u a ^ i^echanical traction "^^Ttll^uS^Xe Se^{^rStLS,'^&£ aSrwi^ Of minerals, when executed in independent establishments. CHAPTER VII.— WOEKMEN'S INSURANCE IN ITALY. 1767 CLASSIFICATION OF ENTERPRTqifQ TMT^TTomT,,™^ 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 Wool and cotton cardine Artificial wool. . *^£n\X°h^1,7'"'«''«°'*«»-(P'e^"in"iobe^d Silk spinning Silk waste working Yam twisting. With maciiinei^^ Yam twistmg, without machinery" '''^SS.lf^^.^l^^!S'^^,^''-^'-rs 2.6 1.6 6.5 orint ADMINISTKATION. savings bank, Zlt^Zl^LTl''"''-'' '''''''"^ ^ *»»« ^ilan entered into he agrefment Tht ''^^^"^ institutions which have bank acts also asThrrecutivrcor''*'i^'/r'^"^" ''^ *he Milan institution. It must mee/" eSHnd'of *'' T""^*^ '°^"^-- administers all the current Tust^ek j fl '^ necessary, and supervising the work of the execSorl ItTr^!.^^^^^^ premium changes DreDar«« th^ . ^^""^^ *^® necessarv yea. the techLll'^sSments cTd^u tsthrT.'^'^' ^^^^>' «- employers and workmen for in. ,r,n. 1 ? agitation among the of accident preventS^ etc ^Mh« .t 7'''^"°' ^'"'"^^ "^^t^ods the agreements act L local afnts „f" ^- '°'" ^^'^ ^*^« '^^-" hers of the executive 00^^*^^' ^"^J'^^^'^^'^t, and five mem- of the other nine banks ^f^' *°^. ''"^ representative from each oftener if necessary It al^ '°T' """^^ ''''' semiamxually, ^1 approves the ann/al budtTand ieTr"" *°^ -den.nity';ates, tl^e action of executiveoffi^ct,tl;tdraT^ter^^^^ and revised 1770 REPORT OF THE COMMISSIONER OF LABOR. The law of December 23, 1886, provided a method for introducing changes in the conditions of the agreement. According to the law the superior council may recommend to the Government such changes in the conditions as experience shall prove desirable, and these recommendations may be approved by royal decrees (administrative acts). STATISTICS OF OPERATIONS. A record of the operation of the National Accident Insurance Institution for the entire period is quoted in the following table, showing the total number of policies issued and the number of persons insured each year from the beginning of the organization of the institution. This table shows the growth of the transactions, though not altogether accurately. The number of policies issued and the number of persons insured is excessive for the years 1898 and 1904. During 1898 the first compensation act went into effect, and during 1904 the amendments of 1903, and in both years many poUcies were written twice, first for a short time under the old conditions, and then again to comply with the new requirements, wliich explains the very large number of policies issued during these two years. NUMBER AND KIND OF POLICIES ISSUED AND NUMBER OF PERSONS INSURED EACH YEAR BY THE NATIONAL ACCIDENT INSURANCE INSTITUTION. 1884 TO 1907. [Source: Bollettino di Notiele sul Credito e sulla Previdensa, 1902 to 1908. Atti della Cassa Nazionale d'Assicurazione per gl' Infortuni degli Operai sul Lavoro, 1908 and 1909.] Indi- vidual insur- ance: Persons insured. Collective insurance. Simple. Combined. 1 oiai. Year. Policies issued. Persons insured. Average niraiber insured per policy. Policies issued. Persons insured Average number insured per policy. Policies issued. Persons insured. 1884.... 1885 1886.... 1887. . . . 1888.... 1889...- 1890.... 1891..-- 1892.... 1893. . . . 1894. . . . 1895.... 1896.... 1897.... 1898 (o). 1899 1900. . . . 1901.... 1902. - . . 1903.... 1904 (o). 42 304 532 1,058 1,192 1,292 2,056 1,904 1,947 1,922 2,105 2,472 2,540 2,777 2,710 2,274 2,452 2,669 3,029 3,082 3,379 3,409 3,460 3,811 6 28 76 02 75 82 113 101 100 105 141 187 190 250 337 201 296 443 378 463 (6) (ft) 306 2,382 6,687 4,103 4,018 4,191 4,977 5,516 6,047 11,762 11,368 12,282 16,803 15,318 20,287 6,665 8,169 9,917 10,305 10,718 C) C) 51.0 85.1 88.0 66.2 53.6 5L1 44.0 54.6 60.5 112.0 80.6 65.7 88.4 6L3 60.2 33.2 27.6 22.4 27.3 23.2 2 53 228 259 359 538 749 905 997 1,142 1,247 1,464 1,670 1,843 3,976 3,823 5,493 8,880 14,607 17,927 c 39, 505 e 27, 136 c 32, 027 c 33, 151 96 10,521 25,487 34,370 48,202 78,304 93,797 106,503 111,122 117,052 121,536 138,879 148, 5H9 154, 774 272, 825 107,326 207,464 298,383 392,027 444,739 c972,8t)8 c537,+U c 642, 154 c 644, 870 47.6 198.5 111.8 132.7 134.3 145.6 125.2 117.7 111.5 102.5 97.5 94.9 89.0 84.0 68.6 28.1 37.8 33.6 26.8 24.8 C24.6 C19.8 «20.1 C19.5 50 386 836 1,379 1,626 1,912 2,918 2,910 3.044 3,169 3,493 4,123 4,400 4,870 7,023 6,298 8,241 11,992 18,014 21,472 42,884 30,545 35,487 36,962 443 13.207 32.706 39,531 53,412 83.787 100.830 113.923 119.116 130, 736 134.999 153,633 167,912 172,869 295,822 116,264 218,085 310,969 406,361 458,539 976,247 1905 540.850 1906 645 614 1907 648,681 CHAPTEE VII.— workmen's INSUBANCE IN ITALY. 1771 The actual increase in tlie number of wage-workers inonr^H ;» shown in the second column of the followmg tluJ^gZZ^Je number of persons msured throughout the vear tL HJfflf ^ between the number of persons infured during t"e yit t shown' on page 1770, and the average number insured throu^ut the vl^ STsLrt W*''' tS-'^^^ r^'t °^ P^-^-^ we^etsutV o" r^^^ !^ . . ^ ^'S**^* number was reached in 1903 aftpr which the formation of the Sulphur Mine Employed Sal^ Wance Association caused a considerable redu^ctbn in S?ave7 age number of persons insured throughout the year in SeNatLL" Accident Insurance Institution. J «" m me iNational This table shows the increase in the number of accidents The column giving the amiual number of accidents per 1 oSper^n^ msured shows a very rapid increase in the frequLcy of accW^^ Wluch has caused a very strong outciy against th2 frauHrpfa^JJ and malmgermg, discussed more fuUy in a subsequent section sipn(bythedecreeofJuir.l'lV^ of over five days, whUe previously benefits were paid oTfor LfuriE hshed by the accident statistics of all countries, a vei^y large nrlSfon of accidents caused disability of less than one montL"^^ ^ *'*"" eigS;::^ (Tssst 7^^ ^^^ ^^^Y^^-^^ fainy uniform for about eL^i^rZ^ SCra^lti'ls^pSyTSt ^/^^ taken place m^ai^Se ^LZ'Z:^-^^. LT^^'T for the death ratio has not increased, but rather dec^^l a ' panson of the totals for the three nerioT t hi ! ^f 'f'^d. A com- ment of the law asss tni«08 wu ' . """^ ^^^^''^ ^^^ «n*c«- (1890 tl TonQt / ! ^ ^^' ^^^ P*"''*^ of ^^ first law of 1898 U899 to 1903), and of the amended law (1904 t.^ 1onA^ u • more forcibly the rapid increase in tie lidLt rate. '^' ''"^ «"* a The large number of policies issued in this year is explained by the fact that policies were issued twice during the year, first before the new regulations went into effect, and then for the rest of the year. b Included in combined collective insurance, e Including simple collective insurance. 1772 REPOBT OF THE COMMISSIONER OF LABOR. NUMBER AND PER CENT OF ACCIDENTS TO PERSONS INSURED IN THE NATIONAL ACCIDENT INSURANCE INSTITUTION AND ACCIDENT RATES, BY RESULT OF INJURY, 1884 TO 1906. [Source: Atti dellaCassaNazionaled'Assicurazionepergl' Infortuni degli OperaisulLavoro. Verb^della Seduta del 22 dicembre 1908. On September 30, 1908, there remained unsettled 3 cases of 1900; 1 of 1901 ; 7 of 1902; 56 of 1903; 127 of 1904; 90 of 1905, and 738 of 1906. Thixw numbers are not included m the figures reported for the respective years.] Year. Average number of persons insured through- out the year. 1884. 1885. 1886. 1887. 1888. 1889. 1890. 1891. 1892. 1893. 1894. 1895. 1896. 1897. 1898. 1899. 1900. 1901. 1902. 1903. 1904. 1905. 1906. 1888 to 1898. . 1899 to 1903... 1904 to 1906... 67 6,556 24,440 36,992 58,023 77,876 94,507 103,238 109,253 118,133 125,119 138,192 146,696 158,214 160,772 178,439 202,355 245,501 340,256 421,363 370, 198 373,570 406,183 1,290,023 1,387,914 1,149,951 Number of accidents resulting in— Death. 2 91 47 62 65 101 84 89 96 82 113 99 174 145 158 159 298 339 399 353 307 334 1,110 1,353 994 Per- ma- nent disa- bility. 19 67 104 108 133 153 203 211 247 299 336 366 431 390 406 646 956 1,554 2,372 2,037 2,005 2,844 2,877 5,934 6,886 Tem- po- rary disa- bility. Total num- ber of acci- dents. Numberof accidents per 1,000 insured resulting in— Death. 49 538 1,374 3,393 4,695 5,249 5,636 5,720 6,977 7,610 8,338 9,804 11,999 12,019 10,908 14,920 21,420 31,561 42,489 50,579 51,914 62,064 81,440 121,298 164,557 70 696 1,525 3,563 4,893 5,503 5,923 6,020 7,320 7,991 8,787 10,269 12,604 12,554 11,472 15,725 22,674 33,454 45,260 54,226 65,242 85,427 128,585 172,437 0.31 3.72 1.27 1.07 .83 L07 .81 .81 .81 .66 .82 .67 1.10- .90 .88 .78 1.21 1.00 .94 .95 .82 .82 .86 .97 .86 Per- ma- nent disa- bUity 2.90 2.74 2.81 1.86 L71 1.62 1.97 1.93 2.09 2.39 2.43 2.49 2.72 2.42 Tem- po- rary disa- bUity. Num- ber of aU acci- dents per 1,000 in- sured. 28 19 90 57 63 50 5.37 7.00 2.23 4.28 5.99 7.47 22.02 37.14 58.48 60.29 55.54 54.59 52.36 59.06 60.82 60.34 66.84 75.84 74.76 61.13 73.73 87.25 92.75 100.84 136.63 138.97 152.80 63.13 87.40 143.10 10.68 28.48 41.22 61.41 62.83 58.23 57.37 55.10 61.96 63.87 63.59 70.00 79.66 78.08 64.29 77.70 92.36 98.32 107. 41 143.08 145.16 160.62 66.22 92.65 149.95 Per cent of aoci- dents resulting in— Death Per- ma- nent disa- bility. Tem- po- rary disa- bUity. 2.8> 13.07 3.08 1.74 1.33 1.84 1.42 1.48 1.31 1.03 L29 .95 1.38 1.15 1.38 1.01 1.31 1.01 .88 .67 .57 .51 1.30 1.05 .57 27.14 9.63 6.82 3.03 2.72 2.78 3.43 3.50 3.37 3.74 3.82 3.57 3.42 3.11 3.54 4.11 4.^22 4.65 5.24 3.84 3.70 4.36 3.37 4.62 4.00 70.00 77.30 90.10 95.23 95.95 95.38 95.15 95.02 95.32 96.23 94.89 95.48 96.20 95.74 95.08 94.88 94.47 94.34 98.88 96.49 95.73 96.13 96.33 94.33 95.43 In addition to the increase of accidents there was also an increase in the average amount of compensation. In the following table the figures do not refer to the amount of compensation paid during any- one year, but the amount paid in compensation for accidents occurring during the year. Such a method of presentation is much more accu- rate and valuable, though it causes considerable delay, as the figures for the last five or six years are always subje(?t to correction because some claims remain unsettled for several years. The marked increase of the average amount of compensation per case from $9.92 in 1898 to $17.93 in 1899 shows the effects of the act of 1898, which regulated the amounts of compensation and increased it for both the fatal cases and those leading to permanent disability. Under the volun- tary system the average amount paid for a fatal accident fluctuated between $140.17 and $243.74; under the law of 1898 it immediately increased to $548.02, and in 1905 was $570.69. In cases of per- manent disabihty the average amount of compensation under the voluntary sytem was under 500 lire ($96.50), and immediately after the passing of the law of 1898 increased to nearly 1,000 lire ($193). CHAPTEB VII.-~W0BKMEN'S INSUKANCE IN ITALY. I773 T^^-" ---CK^fN^T^Vx^^^^^^^^^ BV THE NATIONAL YEAR, BY RESULT OF INJURY. 18^ TO 1^ OCCIDENTS OCCURRING IN EACH [Source: AttI della Cassa Nazlonai« ^' aooi . _ "^ ''^^^.^S-^^^,^;^^->{^y^P^ au, Lav... v„u.. Year. Compensation paid out for accidents resulting in- Death. Amount. }^ «280 IB I 15,556 9,937 1887 1888 1889 1890 1891, 1892. 1893. 1894. 1895. 1896. 1897. 1898. 1899. 1900. 1901. 1902. 1903. 1904. 1905.. 1906.. Per cent of total Permanent dis- ability. 1888 to 1898. 1899 to 1903. 1904 to 1906.. 11,233 11,201 19,019 17,606 17,123 19,983 19,391 27,542 21,809 38,967 32,317 86,587 91,261 177,573 211,176 255,952 209,878 175,201 186,026 236,192 822,126 571,105 17.73 68.68 41.18 30.78 25.00 30.10 27.01 24.75 26.67 22.69 29.25 22.19 29.85 25.95 42.09 33.76 40.23 32.74 28.67 22.66 21.29 18.77 Amount. $1,173 4,715 8,003 9,684 11,400 16,204 18,814 22,260 21,081 28,375 29,458 33,015 37,-590 36,593 76,553 120,201 176, 052 297,286 455,587 487,155 430,690 553, 959 Per cent of total. Temporary disability. Total foraU accidents. Average compensation paid in case of— Amount. 26.64 264,474 33.49 1,126,100 20.84 1,471,804 74.20 20.82 33.17 26.54 25.45 25.64 28.86 32.17 28.13 33.20 31.29 33.60 28.79 29.44 37.21 44.47 39.89 46.09 51.04 52.60 52.34 55.88 29.83 45.87 53.71 $128 2,379 6,190 15,577 22,203 27,971 28,769 29,808 33,865 37,699 37,159 43.437 53,988 55,549 42,572 58,831 87,763 136,543 181.096 229,073 21fi, 981 251,321 386,025 506.806 697. 375 Per cent of total. 43.53 20.64 25.45 SI, 581 22,650 24,130 36,494 44,804 63,194 65,189 69,191 74,929 85,465 94,159 98,261 130,545 124,459 205,712 270,293 441.388 645.005 892,635 926.106 822,872 991,306 886,691 2.455.032 2,740,284 $140. 17 170.95 211. 43 181. 18 172. 32 188.31 209.60 192.39 208.16 236.48 243. 74 230.30 223.95 222.88 548.02 573. 97 595.88 622.94 641.48 594. .55 570.69 556.96 212. 79 607.63 573.00 $61.75 70.38 76.95 89.67 85.72 105.91 92.68 105.50 85.35 94.90 87.67 90.21 87.22 93.98 188.55 186.07 184.15 191.30 192.07 239.15 214. 81 194.78 91.95 189.77 213. 74 $2.60 4.42 4.50 4.59 4.73 5.33 5.10 5.21 4.85 4.95 4.46 4.43 4.50 4.62 3.90 3.94 4.10 4.33 4.26 4.53 4.18 4.05 4.74 4.18 4.24 $22.59 32.54 15.82 10.24 9.16 11.48 11.01 11.49 10.24 10.69 10.72 9.57 10.36 9.92 17.93 17.19 19.47 19.28 19.72 17.48 15.18 15.19 10.38 19.11 15.89 compared with the Italkn wiges °'^''*^'''^^^ considerable when nortLt^rpZlSr"? ^^^ r^^ '^^ ^'- '-* *^We does liability. Ti.:f^c^c^^Xht^TzVrr''''''''''' '^^ ^-"p'^---' liability payments ^ndVeZpJZnth^' ''""""* "^ employe,.' the entire compensation paCenS T^! /T"'""'' constituted of year are naturally very gfeTbut ih A^'^t^at'ons from year to payments since 1898 wh!n th. 7"^ '^'''^^^ ^^'^^ i'^ ^^<^i^ waspassed,isveryslSffi;ant *t ^r^^T T'^^'^* '"^"'^^''^ 1*^ the vast maioritv oTn^i^ • P/^*"^ ^^"^ *^« **ble on page 1770 class-thaTk,Thll?uSh ""'"^ '" °' *^« combined "^^ollective according to the Kch i^^^^^^^^^ of employee' liability-bu ^ault only, and is ^^J^^^Z:^^:^:^^^ ^^^ 1774 KEPOKT OF THE COMMISSIONER OF LABOR. PROPORTION BETWEEN EMPLOYERS' LIABILITY PAYMENTS AND TOTAL AMOUNT OF INDEMNITY PAID, 1884 TO 1906. [Source: Attl della Cassa Nazionale d' Assicurazione per gl' InfortunJ degli Operai sul Lavoro. Verbale della Seduta del 22 dicembre 1908 del Consiglio Superiore e Bilancio Coiisuntivo del 1907. M ilano, 1909.1 Year. 1884.... 1885..-. 1886.... 1887.... 1888.... 1889.... 1890.... 1891.... 1892.... 1893.... 1894. . . . 1895.... 1896..., Total indemnity paid (in- cluding liability payments) , $1,581 38,550 25,270 37, 194 45,351 64,040 73, 136 71,719 79,874 88,749 100,623 102,166 Employers' liability payments. Per cent Amount. of total indem- nity. " *$i5*899" 4i.'24 1,139 4.51 700 L88 546 1.20 846 1.32 7,947 10.87 2,528 3.52 4,945 6.19 3,284 3.70 6,464 6.42 3,905 3.82 Year. 1897. 1898. 1899. 1900. 1901. 1902. 1903. 1904. 1905. 1906. Total Indemnity paid (in- cluding liability payments), 1884 to 1898. 1899 to 1906. $134,049 128.521 207,473 271,881 444,341 656,432 901,116 930, 438 824,589 991,407 990,823 5,227,677 Employes' liability payments. Amount. $3,504 4,(h;2 1,701 1,58K 2,953 11,427 8,481 4,132 1.71S 101 55,7m 32,361 Per cent of total indem- nity. 2.61 3.16 .85 .58 .66 L74 .94 .47 .21 .01 5.63 .62 The general results of the operation of this institution in the separate industrial groups to which the insured belong are shown in the following three tables for a period of four years, 1899 to 1902. By thus combining the data for a number of years lai^er numbers are obtained and the averages and proportions are more trustworthy than for a single year. The data for individual insurance are not included in these tables. One of the most interesting things brought out by the following table is the proportion between the premiums and the wage expense in the various industrial branches. The lowest relative cost is found in the textile industry, only 0.47 of 1 per cent of the wage expense being paid as premiums. The highest, nearly 3 per cent, is quite unexpectedly found in agriculture. This is easily explained, how- ever, by the fact that only persons tending agricultural macliinery are subject by the law to compulsory insurance. With this excep- tion, mining shows the highest percentage, followed by construction. Among the industries showing a low relative cost are found clothing, paper and printing, brick, earthen and glass ware, and even transpor- tation (which does not include many railroad employees, as these are protected mainly by the railroad mutual funds). The proportion between indemnity paid and premiums collected shows very interesting fluctuations. It demonstrates that the actual cost of accidents often varies considerably from the expected cost. Thus in the brick and china manufacturing industry and in mining the actual cost was very much higher than the expected cost as rep- resented by the premium charged, while in the paper and printing industry it was only about two-fifths of what was exj)ectedj in clothing and in textiles it was about seven-tenths. CHAPTEK TII.-WOEKMEN's IKSUEANCE IK ITALY. 1775 BY INDUSTRIES, 1899 TO L NATIONAL ACCIDENT INSURANCE INSTITUTION^ ISourc: B„.,e..to„ dl Noti* su. C,«Ut„ , ™„a P«v.den«, „.,, ,^. j Indemnity insured for— Death and pennanent disability. Premiums received. Agriculture Brick, earthen and elass ware Building and 'ooiistfuol tion Chemicals, etc'.'.'.".' .".".■ " " ' Clothing Electricity '.'. Food oil, andtobaocoll.' Machmery Metal working '$1,131,768 2,411,757 28, 123, 573 7,139,843 206,600 1,346,248 3,301,663 7,021,850 Temporary disability Mining.:::—::::::;- d'Ul'm S?p?^'.p™tii»g.etc.::::: Iidlim Textiles Transporta'tionV.V." Woodworking. Other industries".* 8,004,213 17,089,850 1,877,770 2,493,625 Total. S5, 093, 532 12,058,783 140,561,472 35, 688, 165 1,032.999 6,731,239 16,483,644 35,084,587 26,327,880 76,223,010 12.750,410 40,017.484 84. 198, 270 9,380,782 5.494,412 Amoimt. Indemnity paid. 103,236,290 507,126,669 $553,306 1,211,775 14,146,474 3, 617, 479 103,300 701.187 1,705,348 3,569.121 2,707,654 8,165,581 1,356,724 4,225,617 8,507.301 990,708 848,242 *32,508 2.87 17,651 .73 Amount. Per cent of wages paid. Per cent ofpre- miunu. 552,851 88,168 1,042 18, 167 37,583 94,750 58,888 359,656 15,671 37,702 166,009 26,816 13,333 128,077 23,631 512. 7(3 67.832 718 15.822 30,719 89,321 59.303 444.577 6,559 27, 1,30 179.050 22,572 8,278 2.48 .98 86.37 133.88 52,409,817 1,520,795 j 1.47 :i751^:i^ 1.82 92.75 .95 76.93 .35 68.91 1.18 87.09 .93 81.74 1.27 94.27 1.12 100.70 2.91 123.61 .26 41.85 .34 71.96 1.05 107.86 1.20 84.17 .33 62.09 1.47 99.71 '^^;;;^^^^o^^^no^i^ 3UI c«mto e su>U Previdea^, M.,, .907., 1776 REPOKT OP THE COMMISSIONER OF LABOR. The following table shows, by industries and results of accidents, the indemnity paid during the four-year period, 1899 to 1902, to persons insured under the collective accident insurance of the National Accident Insurance Institution : TOTAL AND AVERAGE PER CASE OF INDEMNITY PAID UNDER THE COLLECTrV^E ACCIDENT INSURANCE OF THE NATIONAL ACCIDENT INSURANCE INSTITUTION, BY INDUSTRIES AND RESULT OF INJURY, 1899 TO 1902. [Source: Bollettlno dl Notlzle sul Credito e svdla Prevldenza, May, 1907.] Indemnity paid for accidents resulting in— Industry. Death. Amount. Agriculture Brick, earthen and glass ware. Building and construction . . . Chemicals, etc Clothing Electricity Food, oil, and tobacco Machinery Metal working Mining Paper, printing, etc Textiles Transportation Woodworking Other industries S6,152 1,737 204,534 26,839 Total. 6,426 5,758 10,426 12,975 199,682 72 3,408 71,388 5,042 4,318 Aver- age per case. ^0 579 607 610 Permanent disa- blUty. Amoimt. 558,757 918 676 613 865 605 72 341 585 504 480 601 $16,915 17,021 212,602 23,532 627 6,690 18,766 52,913 29,015 154,273 4,165 17,036 69,320 11,706 1,989 Aver- age per case. 636,579 J277 200 195 208 157 197 182 169 148 198 83 122 186 108 199 TemT)orary dissi- IbUity. Amount. 184 $5,010 4,873 95,627 17,461 91 2,697 6,195 25,982 17,312 90,622 2,323 6,686 38,342 5,824 1,971 Aver- age per case. Ail accidents. Amount. 321,016 $6.18 a 21 4.35 4 07 4.14 3.90 4.02 3.27 a 39 4.90 a 69 2.96 3.69 a 76 a 77 4.13 $28,077 23,631 512,763 67,832 718 15,822 30.719 89.321 59.303 444.577 6.559 27.130 179.050 22.572 8.278 Aver- age per case. 1,616,362 $31.65 14.72 21.91 15.24 27.62 2L59 1&58 ia79 11.14 22.67 9.63 11.28 1&45 ia56 15.27 18. 4A FINANCIAL STATISTICS. In the details of the financial organization a radical change was affected by the decree of November 22, 1888. The original agree- ments provided that the premiums should be calculated without taking into consideration the cost of administration, and that these be distributed among the 10 banks pro rata, proportionately to their contributions to the guarantee fund. After 10 years of experience the banks might be permitted to substitute a definite annual pay- ment instead of these pro rata payments, or a lump-sum payment of the capitalized value of such annual payments. Half of the surplus from the operations of the insurance institution was to be used in payment of the guarantee fund in pro rata sums; and as long as the entire guarantee fund was not repaid, the interest on the outstanding amounts was to be returned to the banks. After the entire guarantee fund is repaid from the surplus a part, but not over one-half, of the additional surplus determined by the superior council might be used for accumulating a reserve fund and part for the benefits of the insured. This system was abolished by the decree of November 22, 1888. According to the system then established the guarantee fund was CHAPTER VII.— workmen's INSURANCE IN ITALY. 1777 turned into the treasuiy of the insurance institution which was to make use of this fund and the interest from it as of all other reTSu^ On the other hand the insurance institution was requked to meet all expenses of admmistration. The prohibition to load thLe expenses upon the premium rate was abrogated, and the ?o banl which signed the agreement were freed from anv further nhLf to contribute to the cost of administration. Thelsur^^^^^^^^^ was required to build up a reserve fimH ^^^h "'r^^^^^^^^/^s^^i^^ution »0 000 li„ <.96,500, .hen «., .„%,„.,. Tt^.lZ^fZ'^ As is seen from the statement of resourrp., «r.^ r ki-.- resources had grown to 81,313,973 171905 rt two n ' " t Items are the reserve for comDensatinn nf .r i Pnncipal the year and the original ^ZZ^f^Jn^oZtllml^^^^^ has been fircontinuour '""' ''"'^"'"' """^ *^^^' ^^''^'^ Year. Resources on Decem- ber 31. Liabilities on December 31. Guaran- tee fund. Surplus. 1889... 1891... 1892... 1893... 1894... 1899... 1900... 1901... 1902... 1903... 1904... 1905... 1906... 1907... $344,895 370, 198 387,971 407, 623 425,084 566,171 609,589 682,439 808,464 970, 109 1,137,977 1,313,973 1,474,675 1,859,422 «289,500 289,500 289,500 289,500 289,500 289,500 289,500 289,500 289,500 279,850 271,586 279,850 279,850 279,850 $9,723 13,510 19,300 19,300 19,300 29,837 49, 137 54,040 54,040 54,040 Reserve for com- pensation of cases pending. Reserve for fluc- tuation of value of secu- rities. $17,894 24,340 28,005 25,655 34,289 105,412 124,400 195,323 345,864 468,888 592,991 742,151 884,483 1,129,426 $13,510 13,510 27,406 27,406 27,406 27,406 27,406 27,406 47,618 35,931 40,644 23,526 26,566 Extraor- dinary reserve. $5,790 19,300 28,950 36,284 44,390 57,900 54,108 68,578 43,819 other reserves and funds. 77,200 38,093 48,250 38,109 $1,930 3,860 3,860 3,860 3,860 14,128 27,638 31,498 19,682 17,370 20,021 21,962 27,987 37,381 Bills payable. Surplus from opera- tions of the year. «Atti della Cassa Nazionale I' Assicurazione per gl' Infortuni degli Operai $17,557 3,387 3,684 4,051 4,783 7,914 10,497 16,094 28,153 102, 343 128,270 171,860 210, 579 262,237 $2,501 2,791 1,162 1,567 1,556 34,074 26,903 11,978 19,413 85,853 sul Lavoro, 1904-1909. 1778 EEPORT OF THE COMMISSIONER OF LABOR. In the following tables showing the receipts of the institution it was impossible to present comparable data for the entire period because of a radical change in -the form of presentation of the accounts. The first table represents a purely formal recei])t account. The actual income of the institution consists mainly of two items — the premiums received and the interest on investments. All other revenues were comparatively insignificant, except for 1902 and 1903, when they included transfers from the reserves for the purpose of covering the deficits from operation during these two years. In the table of receipts for 1904 to 1907 the form of tlie account has been changed, and the total represents the actual revenue of the institution. In 1907 the premiums were about 95 per cent of the total receipts. RECEIPTS OF THE NATIONAL ACCIDENT INSURANCE INSTITUTION FOR VARIOUS YEARS, 1889 TO 1903. [Source: Bollettino di Notizie sul Credito e suUa Previdenza. Data for 1890 and 1895 to 1898 not obtainable.] Year. Reserve for com- pensation of cases pending. Premiums. Interest. All other. Loss from operations. Total. 1889 $14,758 21,895 24,340 28,006 25,655 55,570 105, 412 124,400 195, 323 345, 864 $58,220 87,205 88,069 95,621 100,244 265,569 298,610 384,011 583,958 822,341 $12,478 17, 169 18,007 18,714 19,436 22,250 25,270 26,973 28,340 29,376 $8,777 2,577 2,883 1,298 1,651 1,265 7,073 7,478 054,994 6 100,361 $94,233 128,846 133,299 143,639 146,986 344,654 436,365 654,679 891 071 1801 1892 1893 1894 1899 1900 1901 $11,817 28,4S6 12,068 1902 1903 1,310,000 o Including $53,060 taken from the reserves for payment of claims. b Including $67,027 taken from the reserves for payment of claims. RECEIPTS OF THE NATIONAL ACCIDENT INSURANCE INSTITUTION. 1904 TO 1907. [Source: Atti della Cassa Nazionale d' Assicurazione per gl' Infortuni degli Operai sul Lavoro: Bilancio Consuntivo del 1904, 1905, 1906, and 1907.] Year. Premiums. Interest. Office fees. All other. Total. 1904 $1,219,249 1,121,709 1,244,289 1,586,953 $34. 935 39, 737 48. .W8 50,088 $26,127 22,631 25,596 26,839 $502 296 4.<3 1, 354 91,280,813 1,184,373 1,318,716 1,665,234 1905 1906 1907 On account of a change in the form of keeping the accounts the expenditures are also shown in two tables. For the years 1889 to 1^03 the first table shows the actual indemnity paid during the year, and the reserve computed at the end of the year to cover outstanding claims as an item of expenditure. The gains from operation are also shown as an expense item to balance with the revenue account. For the years 1904 to 1907 an effort is made to account for the actual expenses of the year, the indemnity for claims accrued duriag the year being CHAPTEB Vn.-W0EKMBN'S INSURANCE IN ITALY. 1779 shown rather than the indenmitv actuallv n«;^ v comparisons may be made for the TnlTLS' v"r ""T '""^ the tendency to ^aud.e nt pilt ,7eLlfdy !^^^^^^^^ Year. Indem- nity paid. Reserve at end of the year for com- pensation of cases pending 1889.. 1891.. 1892.. 1893.. 1894.. 1899.. 1900.. 1901.. 1902.. 1903.. Ex- pen- ditures for ad- minis- tration. $44,366 65,619 70,652 76,982 80,089 151,692 240, 713 307, 621 472,332 701,459 $17,894 24,340 28,005 25,655 34,289 105, 412 124,400 195, 323 345,864 468,888 $9,820 13,072 14,044 14,859 16,557 25, 778 29,741 34,937 45, 932 60,399 Medi- cal ex- penses. $2,786 1,291 846 785 727 2,277 3,625 4,414 8,359 13,047 Legal ex- penses. Ex- penses for inspec- tion. $373 36 755 474 1,826 1,396 2,273 2,570 5,425 18, 573 Taxes on in- vest- ments. $2,363 2,846 4,034 6,298 7,953 $1,647 2,266 2,377 2,470 3,234 4,299 4,893 5,244 5,441 5,423 Trans- ferred to re- serves. All other ex- penses. $13,688 19,033 15,440 21,230 8,106 16,950 .1, 30,838 157 398 18 618 602 211 971 536 1,421 5,350 Gain from opera- tions. $2,501 2,791 1,162 1,566 1,556 34,074 26,903 Total. I $94,232 128,846 133,299 143,639 146,986 344,461 436,365 554,679 891,072 1,311,930 i^:zrc^:::z'r ^"™ -'^-^^^^^^ — -■ - - - Year. 1904. 1905. 1906. 1907. Indemnity accrued. $924,570 985,383 1,119,064 1,335,393 Expend! tares for adminis- tration. Medical expenses Legal expenses. $88,465 92,790 111,300 119,586 $14, 567 18,437 25,280 36,555 -■ Cost of determi- nation of injuries. Expenses of inspec- tion. $30,558 53,665 56,014 61,066 $3,479 4,577 6,523 7,343 Taxes on invest- ments. All other expenses. $8,971 12,991 15,025 19,050 $5,423 5,423 5,423 2,125 $2,893 4,148 9,431 17,005 Total. tl, 078, 926 1,177.414 1,348,060 1, 598, 723 not furnish a satisfaS bit Z Z""' ^^^^^P^^S accounts, do results of the insurance SsSion 7 ^°»«l'^«"»'» ^ *« ^^e financial report of this institution contains a labKr^'^* ^'l' ''''' *"''"^' premiums received with f^n! ?i wmpanng the amount of Bame year and^ropX cWel' fP^f^'^^^^ --"? during the -eluding the c'omSa^tTaya J: t TS '7 *'^* ''''' durmg the year anrl th^ „ i'aj'aoie ror all accidents occurring year. As, hCever t£ to^" ''^/t^--t'-ation for the sam! Botdefini^lyknl^^J; *"**„', 7""'^* ""^ compensation payable is changes, the'annlTstteTtt ItS J^^r"'^"* *° ^'*^^^^ tions. In the foUowin.. f«hl» tv. ^ , subsequent modifica- 1780 REPORT OP THE COMMISSIONER OF LABOR. as far as available. It was impossible to obtain such data for 1885 to 1888, 1890, and 1895 to 1898. Until 1900 the premiums not only covered the compensation paid, but left a surplus for meeting the other expenditures, and even per- mitted the formation of reserves. But taken together the compen- sation and the expenditures of administration very often exceeded the amount of premiums received, so tliat evidently the low pre- miums were possible only because of the interest from the guarantee fund and the accumulated reserves. The proportion between com- pensation and premiums became quite alarming in 1901, when the compensation exceeded the premiums by 15.71 per cent. Adding the cost of administration, the excess of total expenditures over pre- miums reached 27.68 per cent in 1901, 23.71 per cent in 1902, and 21.74 per cent in 1903. Thus the premiums were far too low to cover the cost of insurance. The general revision of the rates remedied the situation, while the formation of the obligatory mutual association for the Sicilian sulphur mines reduced the amount of compensation paid very materially. The favorable proportion between the compensation paid and the premiums, and the seemingly large surplus for the last few years are deceptive because due to delay only, many claims for beneiits remaining unsettled. For these years, therefore, the amount of compensation payable is nearer to the truth than the amount of compensation paid out for each year up to September, 1908. For 1905 the amount paid out as compensation was $824,589, while the amount payable was computed at the end of the year at $985,383, and it is reasonable to assume that for 1905, as for all the preceding years, the amount eventually paid would be higher than the computed amount due. For 1906 the amount paid out up to September 30, 1908, was $991,407, while the computed amount payable was $1,119,064. Taking these amounts, the proportion of the compensation to the premiums for 1905 is 87.85 per cent, and not 73.51 per cent, and adding the expense account, 104.48 per cent and not 90.1 per cent. For 1906 the pro- portion is 89.94 per cent instead of 79.68 per cent for compensation alone, and 107.90 per cent instead of 97.65 per cent for compensation and expenses together. For 1907, the last year reported, the amount actually paid was comparatively small; the amount payable was $1,335,393, or 84.15 per cent of the premiums, while the expense account was $263,330, or 16.59 per ceut of the premiums. The total cost was therefore 100.74 per cent of the premiums. CH.4PTER VII.— WORKMEN'S INSURANCE IN ITALY. 1781 COMPARISON BETWEEN PREMTTTU*? rnMT>Ti'XTo . mx^. 1908, AND TOTAL EXPENDWURES OP THE v^TrnM^f "''™ SEPTEMBER 30. INSTITUTION, FOR VARIOUS YEARS f889?o IW OCCIDENT INSURANCE 1907. Data for 1890 and 1895 to 189llot o'bSiSbl^r ° Conrantivo del 1904, fw,TJS?SJd Year. Premiums received. 1889.. 1891.. 1892.. 1893.. 1894.. 1899.. 1900.. 1901.. 1902.. 1903.. 1904.. 1905.. 1906.. $58,220 87,205 88,069 95,621 100,244 265,569 298,610 384,011 583,958 822,341 1,219,249 1,121,709 1,244,289 Compen- sation paid for each year (up to Sept. 30, 1908). 145,351 73, 136 71, 719 79,874 88,749 207. 473 271,881 444,341 656,432 901,116 930, 438 824, 589 991,407 General ex- penses, (a) Total com- pensation and ex- penses. Exoefis of— Pre- miums. S13.244 14,399 15,656 16,679 19,381 31.814 38,485 45,974 66,013 99,971 148,667 186, 586 223,572 S58,595 87,535 87,375 96,553 108, 130 239.287 310,366 490,315 722. 445 1,001,087 1,079,105 1.011,175 1,214,979 Per cent of premiums. Total pay- ments. Compen- sation. S694 26,282 •375 330 932 7.886 140,144 110,534 29,310 11,756 106.304 138, 487 178. 746 77.90 83.87 81.43 83.53 88.53 78.12 91.05 115. 71 112.41 109. .58 76.31 73.51 79.68 Expenses. 22.75 16.51 17.78 17.44 19.33 11.98 12.89 11.97 11.30 12.16 12.19 16.63 17.97 Total payments. 100.65 100.38 99.21 100.97 107.86 90.10 103.94 127.68 123.71 121. 74 88.50 90.14 97. 6S mmor disbursements, not considered exli'n'ii^ofadSysSon^ investments, and in some years other The per capita amount of premium anH «!«.. r.f been computed and are ^hnwnT T Tn ^^ <^onipensation have the entire life of the Tst tuZ /^^/^"^^^^^^ ^-^le. By dividing the accident insLlVe^ ^ ^^^^^^^ ^ "T^'-T' f^^^"^ '^ and rates of 1898 (1899 t^ l^m<^ I a 11' ! ^^^^ "^^^^ *^^ ^^^ 1903 (1904 to 1906)-ia v^^^^^ ''''^'' '^' amendments of average amount of LorpZ t.""^ '^''*'^^' ^ ^^^^^^^- The the fiSt PeHod^lS^d^™,^^^^^^^^^^^^ llZ «/ -ts (9 991, 407 990,823 2,481,243 2,746,434 10.24 1.58 .68 .64 .58 .68 .71 .66 .68 .71 .73 .70 .85 .80 1.16 1.34 1.81 1.93 2. 14 2.51 2.21 2.44 .73 1.79 2.39 eachylar"™^'^*^^'^^^^^^^^*''"^® all payments made up to Sept. 30, 1908, for accidents occurring in THE COMPULSOBT MUTUAL ACCIDENT INSURANCE ASSOCIATION FOB SICILIAN SULPHUR MINES. The parliamentary commission whicli studied the bill of 1903 in- tended to hmit its provisions concerning compulsory employers' mutual accident insurance associations to the industry of sulphur mining in Sicily, but the law as passed did not contain the specification, because of the argument that conditions similar to those in that industry might develop in other industries also. As a matter of fact the sul- phur mining industry of Sicily was the first to be organized under the law on July 11, 1904. The difficulties arising out of the apphcation of the law of 1904 to' the sulphur mines of Sicily were claimed to be inherent in the pecuhar organization of that industry. Small undertakings predominate. Wlien the compulsory association was formed it embraced about 900 employers and nearly 40,000 employees. Subcontracting is very common. Often the proprietor divides his sulphur beds among many contractors, and even one sulphur mine may be exploited by several contractors, each having an independent shaft of entry. In addition, the usual method of payment is in piece wages. These factors made the differentiation of the employer and employee and the CHAPTER Vn.— workmen's INSURANCE IN ITALY. 1783 determination of the earnings and other details of the application of the law very difficult. The operators complained of tKxcessive charges imposed by the law. The national insurance insSL was forced to put these mines in one of the high ^ent^^^^^^^ ^tt:f ^Thr^^^^^^^ ^^™^ ^' premiums'for uLZluT^ anions. lUe pnvate insurance companies had comnI«in»^ ^f tu frequency of frauds on the part of thelaU empioye^inS af te ft" years of unsatisfactory experience left the entire fidd to the !f ^ insurance institution which by its constituSn f p^^ed Sot refusing any risks. Protracted lawsuits and delays in the patSenTS mdemnities were frequent and caused hardsliio to h« in; ^ . men, and the national insurance instituUon in whit 27^t Tht SoTwH "'"'"'*' '"'^''''^ " ^'^^^y deficit during Lyel 1899 to 1903 which was especially large in the Palermo branch due to !'- oc^al IZafins^uf^^ circumstances emphasized the neces itv o a bettToltrilToSr Icco'rrT*''' ""T' "^^'^ ^^'^ --kj feehng of econo'S 'and ^ZsZlZT^^l^V'"'^'' ^^V^^ tary association futUe ^ ^°P^ '*''" * ^<>l"a- commerce and of art^ in^^ • . ■' '*^^°*^ °* ^'^^ <"^ambers of July 11, 1904, under the name of Ihp S;I I nur^ ^"^"^ ^^^^^ ""^ for Mutual Insurance IJITJ ^ f'\^}''^^'^ Obhgatory Association Aiding in,..risi:!zi ii^zt^'^zz 2 si^-r-' ch?mbt TtL'?LlwrS'°?^^ ^^r^' '-^ ^^ ^y ^o^^ the operation of th LTas a^t" to Irel'T^ modifications in industry and to thp FmL *PP"®d *« ^^^ Sicihan sulphur-mining elation.^ These modffiS''' "^rj"''"'^ ''"*"** ^-^^^-^e Ass^ among the inS^emXyeSco^ Tc "^*'""^ "^ ^^*"^"t-g meas to be taken to /ollertlifn^r/fuTdr ""'^ '''' ^" *^^ Ma; T^2f::£tff:^ i: ''-''r'- *>* ^«p-^- - pointed out hat the method Thw-k',"'*^"'^'^' ^""^ ^'""'"«'-«« 1 1784 REPORT OF THE COMMISSIONER OF LABOR. vidual employers worked injustice, because of frequent deceptions in the statements of some of the employers. A comparison of the data of the mining office of the district of Caltanisetta with the data of the National Accident Insurance Institution showed that the amount of wages certified was about one-half of the amount actually paid. The ministry therefore accepted the suggestions of the SiciHan mining association, indorsed by several of the chambers of commerce of Sicily, that the assessments be made not according to the wage expense, but according to the quantity of sulphur produced, and that they be collected in connection with the railway transportation of the product, so as to make impossible any evasion of the assessments. OPERATIONS UNDER THE LAW OF JULY 14, 1907. The conditions of the application of the compensation legislation by the Employers' Compulsory Mutual Accident Insurance Associa- tion were considerably modified by the new law of July 14, 1907, referring especially to tliis obligatory association. The chief object of this law was further to eliminate the opportunities of defrauding the association. The special law of July 11,1 904, was aimed at the frauds in connection with the payment of contributions by the members, but It left untouched the opportunities for fraud in connection with the payment of compensation. The minister of agriculture, mdustry, and commerce in his memorial accompanying the bill introduced mto the Chamber of Deputies on June 9, 1907, declared that the law of July 1 1, 1904, aggravated frauds in connection with the statements of wages and earnings upon which the computation of compensation is based, because it took away the restraint upon exaggeration which existed when the employers' con- tributions were proportionate to their wage expense. It was pointed out in the same memorial that the conditions of contracting and sub- contracting made exaggerations of wages especially difficult to detect. The general standard of the law making the annual earnings ec^ual to 300 times the daily wage was also declared to be excessive for the Sicilian mining industry, since the actual number of working days varied in the different provinces from 160 to 248. The frequent fraudulent practices led to excessive litigation, which proved an additional expense to the insurance association. To remedy these conditions the association made repeated requests upon the Government that a system of fixed wage schedules for cer- tain occupations be substituted for the method of individual compu- tation of the earnings, and the law of July 14, 1907, is i)rimarily an adaptation of this suggestion. Connected with this are measures for better organization of medical help and for a system of medical CHAPTER VII.— workmen's INSURANCE IN ITALY. 1785 inspection Which will enable the mutual insurance association better to control the payment of compensation («) The law was to go into effect after the pubhcation of the necessary regulations, which were prepared by the ministry, were approved'y msX decree of June 14, 1908, and were promulgated oE August 6^; It will be unnecessary to give a complete analysis of the workings of this emp oyers' compulsory mutual insurance association, because in Its mam features it must follow the provisions of the gene;al accident insurance law, which was fully analyzed in an earlie^r Ittn The purpose and^scope of this institution and the extent of the industrial field covered by it are sufficiently well indicated in its titl The provisions concerning persons injured, the character of Mitv compensated, and the benefit payments all remain uncLnger o£ those features of its activity will be presented which show a materS deviation from the methods required by the general law Medical HELP.^The association is required by the law of 1907 to orgamze a service of first medical and pharmaceutical aid to the injured workers in regular stations, without any cosHo the slhur mine owners. In addition to the medical helpf the physfcLn^^^^^^^ nected with these medical aid stations must furnish thT ^.i and final medical certificates without anTcostrh ^'f^^^^ 10 levy an additional tonnaffp tnx imnn iU^ o. i u • , ">'""ii«;u t^ tu • • . ^""unge lax upon tne sulphur mined su-onrAinr, to the provisions of the law of July 11 1904 h„i ^77' *'*"'°™"'g centesimi (9.7 cents) per ton " "'^ ' ^ ' ^ ^"4' *>"* n«t to exceed 50 fraud/the law of 19ol confe^^^^^^ ^"^^ P--We cases of medical insnec^^n , '^'*'*'°*' P°^«' «° ^he association in the associationtlXtd ofleTarm^JisSela^tr^^d' tion'to be made a soon LToSbe Ld? ^'^^'•. ^ \'--%a- In case the injured Dersonp;f,,o?'/ ^^ appomts the expert, it may be a^med hv Th '^ ^ "^u"*"'^** *^^ "^^^'^^^ examination, that Lisz:2Lt't:ioT''''^7' r''''" "^*^™« p--- caused by it. *^ *^^ *'="''*'^* *^ evidently have been 4t:T it:'and Si'tavl^r;? by the association which has lost because of the examlnaZ f ^T'■'** ""^P^^^^ ^"^ ^«g^« expenses, if any ^''*°"''**'°° ^^ reimbursement of his travelbg " BonetUno del.- Uffieio del Lav„,„. Vol. x, Aug. 2. 190S. pp. ,n to m. 1786 EEPORT OF THE COMMISSIONER OF LABOB. 4 Sources of Income.— The expenses of the obligatory mutual acci- dent insurance association of the operators of Sicilian sulphur mines IS met by a special tax of 1.50 lire (29 cents) per ton of sulphur obtained or of mineral containing more than 65 per cent of pure sulphur. The assessment upon mineral containing 65 per cent and less is reduced by one-third. As stated in the report of the minister of May 23, 1904, this rate of assessments was computed in the following way : («) The total amount of compensation annually paid to Sicilian sulphur miners by the National Accident Insurance Institution in 1901 and 1902, when it assumed all insurance in that region, was about 513,000 lire ($99,009). At that time compensation was paid according to the law of 1898. It was computed that on an average the cost under the law of 1904 would exceed that under the older law by about 20 per cent, and an additional 20 per cent was allowed for the expenses of administration and the formation of the reserve, which brought the probable cost up to almost 718,000 lire ($138,574). Since the average annual pro- duction of sulphur amounted to about 500,000 tons, it was estimated that the tax of 1.50 lire (29 cents) per ton would produce the requisite revenue with a necessary margin of safety. In case the tax yields more revenue than is needed, and the general meeting of the association expresses the desire to have the tax reduced, the administrative council may petition the ministry to that effect, and after consultation with the Council of State, such reduction may be ordered by the Government, but it may require a guarantee of the solvency of the institution. The collection of the contribution wa.^ combined with the trans- portation of sulphur and sulphur minerals, because this was consid- ered the best way to reach all the sulphur mined; and since most of the sulphur is transported by rail, the railroad station nearest to the mines was considered the most convenient place for accounting for the tonnage and for receiving the contribution. The raUroad com- panies operating in Sicily agreed to assume the duty of collectin<' the contribution in connection with the freight charges. The coutribu- tion may be paid at the time of shipment or it.may be paid at the time of delivery if the shipper assigns the payment to the consignee by a proper indorsement upon the bill of lading and the railroad transfers the amounts received to the insurance association. The fee charged by the raUroad for making collections is very small, it being 5 centesuni (1 cent) per each 10 Hre ($1.93), with a minimum charge of 10 centesinu (2 cents). ■ The regulation of method of payment of contributions for the sul- phur transported over ordinary roads was left to the constitution of the association. « Bollettino di Notizie buI Credito e sulla Previdenza, 1904, pp. 827 to 835. CHAPTEE VII.— workmen's INSURANCE IN ITALY. 1787 The same rule apphes to the amount and method of payment of contributions to cover the risk of work which is tempora'iSTu^^^^^^^^^^ Determination of BENEFiTs.-The general method of determin mg the benefits due the workmen injured in the Sicihan sulphu Ss" remains the same as provided for by the laws of 1898 and 1Q0'[ ^^ fied m 1904) for all other industrii. The diirSLT^^^^^^^^^^^ June74 to? eon' ''''1^' \^ ?'"^^^^^ -gulationstsu d o^ TrZ II:- V 1' ^""^ ^^^ "^^^^^^ ^^ determination of the wa^es upon which the amount of compensation depends ^ ' -Ueterminationof Wages— InstPflH off iL ^^ * r x i employees hired for a specified annual remuneratior tW aken in ca.e of death or permanent disaS^Tn comD^L J"" 1 temporary disabiUty, the daily wage is arrived It ^/*™P^'^**'°'^ ^^ annual remuneration by 365 Forlu othpT i ^ ^'^"'^ ^^^ through division of the TZ'.-t *^^ ""^^ '"""* ^ "Stained work4 daysTthe tarious p^lZT'^ '^ ^'^^ ^^^'««« --»>- o^ paSir:^ ftrrof r f^^ -r. ^-^ -^'^ -* -'^ ^- -- by age grouDs 2TiZ t t. '"Ip*"""" '"^S provinces but also fact Lf Sr;nTil 2S' T ^^'^'''^'''^ complicated by the ferent occupSalJotT Surtl.r^- '""^ *'"?^'' '"^^ *•>« '^- groups, as foUows- UnSer 2 Ji ' "f, ""'"^'^ ^'^ '^^ded into four under 60 year^ and 60 v.« ^T' ^ ^""^ "°^«'" ^^ y^^^' 45 and divided iXZ'e age grour'underTr '''" '^"'^"^ '»''-- -« 25 and un-- P yees occupied in transporting the sulphur are arranged 1788 EEPOBT OF THE COMMISSIONER OF LABOR. also m five groups, but these groups slightly differ from the age grouping of the common laborers : Under 20 years, 20 and under 40 years, 40 and under 50 years, 50 and under 60 years, and 60 years and over. For all other occupations a slightly different age classifi- cation was adopted: Under 15 years, 15 and under 21 years, 21 and under 30 years, 30 and under 60 years, and 60 years and over. For all age groups except the highest, the demand of the law ia compUed with in obtaining the annual earnings by multiplying the daily wage by the average number of working days. For the age group of 60 years and over, the annual earnings are obtauied by subtracting 25 per cent from the product of the multiplication of the daily wage by the average number of working days. Contract workers who, though working themselves, employ other wage workers are assumed to receive the wage of the highest wage group to which any one of their employees belongs. Five years after going into effect the tables must be revised, and the procedure of the next revision is prescribed in great detail in the regulations of June 14, 1908. Kevision of the tables may be ordered after two years, if a demand for such revision is made either by the Sicilian Mutual Accident Insurance Association or by 100 workmen in any one province, and if the demand is approved by the head engineer, the district mining office of Caltanisetta approves it after investigation. The assigning of the employees to the different wage groups mdicated in the tables must proceed m comphance with the regulations. At the time of employment, the employer must inform the employee to which group of average wages he is assigned. This must be done in the presence of witnesses and with th(5 consent of the employee, who may raise objections against the assignment, and if the employer does not agree with the employee, the statements of both parties must be recorded. * The certificate of assignment must be made m writing and signed by both parties, and it must contain the objections of the employee, if any. Appeals from this assign- ment may be made within ten days to the mutual insurance asso- ciation, which association transfers the complamt to the district mining office at Caltanisetta for final decision. The same procedure must take place in case of change of the employee from one occupation to another, but if the change from one wage group to another is due to age no special notice need be given. The operator of the mine or his agent, upon complaint made by the employee to the insurance association and forwarded to the district mmmg office, may be prosecuted for faUure to give the employee the required notice of assignment. If an accident occurs to a workman before his assignment to a wage group has been made, the assignment is made by the insurance CHAPTER Vn.— workmen's INSURANCE IN ITALY. 1789 association, and disagreement as to such assignment is to be settled mtiie same way as aU other disagreements as to indemnity to be paid ci«S'' ^{^^^^^^^^^^^-de must be given to the insurance asso: ciation The same requirements are apphcable to contractors and to subcontractors employing helpers. If at the time of an accident the notice to the association is overdue, or if the notice furnished omitted to give essential information in relation to the workmen^s wages or contamed false statements relative thereto, the association may recover the amount of compensation from the employer If the salary stated to the association is lower than that'^sta ed to he employee, only the difference of the compensation based upon the two wage figures is recoverable. ^ sisrSrnf'^rrr^™''-^^^! ""^'^^^^ ^^ *^^^ association con- sist mamly of the tax upon sulphur as estabhshed by the law of July 11, 1904; in addition to this there are the initiatio"^ fees of the members, amounting to 4 per cent of their amiual wage expense 7^1r7T: '" ^T^,^-^^^^ --k> -enues ffom tEe ^: vestment of the reserve funds, and miscellaneous income The normal rate of taxes is established by the law; the specidL^essmeit for nonproductive work is determined at 5 per Lt of tC^ ^ expense, and may vary in accordance with the TriatTons of t^^^^^^ nJ fL T^^ organization of the association three funds !^e provided for: An operating fund, tlie ordinary reserve or T^LZl fund, and the extraordinary reserve fund Tl.^ «o^ guarantee fund is forced fron. the initiUT: a^S pe^LTdZLrr^ the other income, which deduction is continued untU Uie rSerrTk of ad^?n ; T'T T"^' ^"""""^ «f "'« indenmities andTp^se^ of administration for the preceding five years Tl,;« .!>c P.*"^?^^ contribuW l/,w . •"«« upon lie new membeis who have not "oeeariteTerlltS-riett^"" """ »°' 1790 REPORT OF THE COMMISSIONER OF LABOR. In case of the dissolution of the association, the constitution pro- vides for a redistribution of the accumidated reserves among the members proportionately to the wages paid as announced to the asso- ciation during the whole period of its existence. The operating fund is kept either in the Postal Savings Bank or in any other savings bank or in the Bank of Sicily, and is subject to the order of tlie president, who must himseK, or through tlie vice- president or a director, indorse all payments. The temporary benefit payments to the injured workmen are made by members of the association, who are subsequently reimbursed. Administration. — The organization and mode of operation of the insurance association is regulated by its constitution. {^) Briefly, this organization is as follows: The association is governed by the general assembly of members, meeting twice a year regularly and in extraordinary meeting whenever necessary, and its officers, as fol- lows: An administrative council, an executive office, an accident prevention committee, so called, auditors, and a board of arbitration. The membership of the association consists of the mine operators who are employers of labor. Under certain regulations the owners of mines who do not operate their mines may hold memb(».rship in the association. In the general meetings of the association the members have a voting power corresponding to the number of employees, 1 vote up to 25 employees, 1 additional vote for each additional 25 employees, but not over 100 votes to 1 person, though the number of employees is computed by assuming 1 employee for every 500 lire ($96.50) of annual wages paid. Members may be represented by proxies, but no member of the administrative council is allowed to act as the agent of any other member of the association. The administrative council consists of ten members, elected for two years, one-half of the number being elected annually. The council has the general powers given to a board of directors, subject to the control of the general assembly. The actual executive work is done by the director, who is at the head of the executive office. He is elected by the assembly for a probationary period of two years, after which he has security of tenure an«l can be removed for cause only by a general meeting at which are registered three-fourths of all voting power. He supervises all the work except that referring to prevention of accidents. The director is subject to tiie adminis- trative council, to which he refers each case of rejected appUcation for compensation. Litigation must be sanctioned by the council. The accident prevention committee consists of three members elected by the general assembly. The function of this committee is to inspect the mines and to issue specific orders and general rules for a Bollettino di Notizie sul Credito e suUa Previdenza, 1904, p. 1643. CHAPTP^ Vn.— WORKMEN 'S INSURANCE IN ITALY. 1791 the purpose of promoting the safety of the work. These orders must be approved by the council, and may be appealed from to the district mining office For the purpose of inspection the committee may impress members of the association for a short time, and must pay them the cost of subsistence and traveling expenses. The three auditors perform the usual functions of an auditing committee, and a board of five arbiters elected annuaUy by the general meeting hears all controversies between the association and Its members referred to it for informal consideration Under penalty of a fine a member is required to accept any office to which he IS elected, unless he is excused for cause by the adminis- trative council, and for his services is entitled to traveling expenses and to a per diem allowance. f^^^s Government Control of Administration. -A few changes were introduced m the methods of administration of the a^ociation by the Zrt ^ • t? ^""'P''" '^ strengthening the government control over its affairs. The governor is authorized to appoint a government representative on the administrative council of the association; aTa special provision authorizes the ministry to transfer the entire admin- istration mto the hands of a government commissioner, if the council ceases to exercise its function or exercises it irregularly. In such cases the commissioner remains in charge until the general assembly elects a new council. It was explained that some such provision w^ needed on the statute books to insure continuity of service of Z association against any malice on the part of the board of directo^ i- 'TT'^^^'' ^^' "" '^' P^^^^ «f '^^ president and of the assembly. He is to resign as soon as a council has been selected The remuneration of the commissioner is to be deternTed by the minister, but must not exceed 25 lire ($4.83) per day ^ tionT'T'^^^^' ^"^'" compulsory mutual insurance associa- tion has been m operation such a short time that little staTtical mformat,on concerning it is available; but in the following WoZSl sation paid for such accidents are given for 1899 to 1905, inclusive 1. e. a continuous period of seven years of the application ^f SieS dent compensation law, for from January i, l899^o Sber 1904 Je sulphur mme operators were insured ahnost altogether wi^h th^ Naional Accident Insurance Institution. Only the kst lineTn these Dectb^TTl' 19ol' '7 ''; !f-"^^^' P^™^' ^^^^^- 1' l^ol "o dS and tl ' r ^"^ ^^'' <^ompulsory mutual insurance asso- tbuous «nH '^'^,P^™^^^ «^.^^ comparisons. The tables show a con- i^^of th A7 r'"''' "^ '^ "^^^^^"' '^'^ "^i<^^ ---- the forma- s owed tlnT ""^ ^".'"'^ association did not stop, although it Slowed down the pace. The rate in 190^ was 126 per thousand- in 1792 BEPOBT OF THE COMMISSIONER OF LABOR. 1904 it was 143.2 per thousand for nine months, or 190.9 per thousand per annum; and in 1904-5 it rose to 254 per thousand for fifteen months, or 203.2 per thousand per annum. What the rate is under the appHcation of the new law of July, 1907, it is impossible to tell, since no data are available. As might be expected, the increase is not manifested in the number of grave accidents. In 1900 the rate per thousand of accidents resulting in death or j)ermanent disability was 8.1, in 1904 it was 9.3, and in 1905 it was 8.0, while the rate of cases of temporary disability increased from 74.3 per thousand in 1900 to 181.6 in 1904 and to 195.2 in 1905. It is also shown that the total amount of compensation increased materially, though to a less degree, because the increase of the accidents was mainly in the tem- porary disability group. NUMBER OF ACCIDENTS IN SICILIAN SULPHUR MINES AND RATE PER 1,000 EMPLOYEES, 1899 TO 1905. [Source: Bollettino di Notizie sul Credito e sulla Previdenza, 1908, Vol. XXVI.] Year. 1899 1900 1901 1902 1903 1904 1905 Em- ployees. Wages 1 paid. 38,208 38,044 38,901 37,789 37,341 35,395 $3,424,635 3,488,810 3,588, US 3,455, 5<)1 3,495,840 2,569,414 Accidents. Resulting in — Death or per- manent disa- bility. 152 308 255 263 307 248 C397 Tem- I)orary disa- bUity. 2,393 2,825 3,924 4,875 4,397 4,820 c9,056 Total. 2,545 3,133 4,179 5,138 4,704 a5,068 ^y,453 Accidents per 1,000 employees. Resulting in— Death or per- manent disa- bUity. 4.0 8.1 6.5 7.0 8.2 O7.0 clO.O Tem- porary disa- bUity. 62.6 74.3 100.9 129.0 117.8 o 136. 2 c 244.0 Total. 66.6 82.4 107.4 136.0 126.0 143.J c 254.0 o Nine months of the operation of the national insurance institution. b Not reported. c Fifteen months of the operation of the Sicilian compulsory mutual insurance association. TOTAL AND AVERAGE COMPENSATION PAID FOR ACCIDENTS TO WORKMEN IN SICILIAN SULPHUR MINES. [Source: Bolletthio di Notizie sul Credito e sulla Previdenza, 1908, Vol. XXVI.J Year. 1899 1900 1901 1902 1903 1904 1905 Total com- pensation paid 156,520.90 85,960.19 108,283.45 101,592.01 128,272.15 122,806.09 6113.259. 76 Average compensation. Per case resulting In- Death. $467.00 508.00 594.00 575.00 599.00 a 527. 00 t> 579. 00 Permanent disability. $163. 75 251.09 190.28 202. 45 2t)l. 72 « 348. 56 t> 232. 57 Temporary disability. $3.93 3.43 4.01 3.96 4.69 4.95 J>4.38 Per case, all cases. $22.21 27.44 25.91 19.77 27.27 24.23 bl7.27 a Nine months of the operations of the national insurance institution, b Fifteen months of the operations of the Sicilian compulsory mutu»il insurance association. CHAPTER VII. workmen's INSURANCE IN ITALY. 1793 COMPULSORY ASSOCIATION FOR INSURANCE OF SEAMEN. The second compulsory mutual insurance association was ordered by royal decree of December 14, 1905, approving the constitution of this association after the preliminary steps required by the law of January 31, 1904, and the regulations of March 13, 1904, had been taken. The decree ordered the association to begin operations on August 1, 1906, under the official title of the Obligatory Southern Maritime Association for Insurance of Seamen against Trade Acci- dents (Sinddcato OUigatorio Marittimo Meridionale per V Assicurazione degli Infortuni sul Lavoro delta Gente di Mare). It embraces the equip- pers and the owners of ships belonging to the shipping districts of Naples, Gaeta, Castellammare di Stabia, Pizzo, Reggio di Calabria, Taranto, and Bari, with headquarters at Naples. In all its essentials the constitution of tliis association follows that of the sulphur mine association, providing the same internal organiza- tion of administration and of the finances, except that in levying the contributions upon its members it follows the general law of 1904, which permits the general meeting to establish the rate annually. OTHER ACCIDENT INSURANCE INSTITUTIONS. As was explained at some length in the general discussion of the law and its application, in addition to the National Accident Insur- ance Institution and the compulsory mutual associations, accident insurance may be provided by the following three groups of institu- tions: (1) Private (commercial) insurance companies; (2) voluntary mutual associations; and (3) private funds, either cooperative or individual. These will be treated very briefly, especially in view of the meager data available. PRIVATE INSURANCE COMPANIES. The essential difference between Italy and Germany or Austria and some other European countries hes in the permission to private insurance companies to enter the field of accident insurance. While the ParUament did not see its way to exclude them, it felt the neces- sity of subjecting their activities to strict supervision and control, so as to protect the interests of the insuring employers as well as those of the insured employees. Private insurance companies desiring to write accident insurance under this law must obtain authorization from the ministry. Writing accident msurance without such specific authorization is punishable by a fine up to 1,000 Hre ($193) for each contract, and the insured employer has the right of action for any damages sustained. Such authorization must be asked for in written petition, accom- panied by the hst of premium rates and a sample poHcy. Variations 1794 REPORT OP THE COMMISSIONER OF LABOR. from the authorized form of policy are not permitted and are punish- able by a fine of from 100 to 5,000 lire ($19.30 to $965) and, if repeated, may lead to cancellation of the authorization. Changes in prc^mium or in conditions of policy require special permission of the ministry. The same requirements in regard to monthly reports and a register of insurance apply to the private insurance companies as to the national insurance institution. The accident msurance business must be kept entirely separate from all other business of the company. A guarantee fund is required from the private insurance companies which at the end of the year must amount to two-thirds of the pre- miums received during that year, with a minimum of 200,000 lire ($38,600). When the guarantee fund falls below the required limit and is not replenished within the specified time, the authorization ia considered canceled and the employers must, witliin fifteen days, provide for insurance in some other way. The great importance ascribed to the guarantee funds is shown by the numerous regulations concerning them. The guarantee funds must be deposited with the Bank of Deposits and Loans in the form of state or guaranteed securities, according to the market value. The valuation must be reviewed each six months, and in case of depreciation of the securities they must be brought up to the required amount. They must also be adjusted every six months to the changes in the volume of operation, and when an increase of the fund ia necessary it must be effected within fifteen days under penalty of a fine up to 50 lire ($9.65) per day for failure to comply with the require- ment. In case of reduction of the number of persons insured, the administration of the insurance company may petition the ministry for permission to refund the difference, and sucli refunding may be accomphshed by the bank upon order of the minister. In case of the discontinuance of a fund or association, such refunding is not made unless it is shown that all obhgations of the company have been met. If the guarantee fund has been impaired by payment of compensation, it must be replenished within one month under penalty of cancellation of the authorization. The administration of each private insurance company must fur- nish to the ministry monthly reports of the status and changes of insurance. The annual statements of accidents and compensation must also be pubhshed, and for this purpose a register of all accidents must be carried, giving information of estabUshments, time and place of accidents, their causes, all necessary information in regard to the injured, the injury, and the compensation. All accident insurance companies are subject to regular examina- tions by the Ministry of Agriculture, Commerce, and Industry. Notwithstanding the rigorous demands of the laws and regula- tions concerning reports from the private insurance companies, the ^ CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1795 statistical information concerning their operation is very scanty and fragmentary. The organization of these companies has been already referred to m the chapter devoted to the general application of Ihe law. Unfortunately neither the number of persons insured nor the number of persons compensated is available, so that a comparison must be made upon the respective amounts of premiums received and of compensation paid. The comparison is not unfavorable smce It shows an increase in the share of premiums distributed as compensation from 73.8 per cent in 1902 to 87.1 per cent in 1906. AMOUNT OF PREMIUMS RECEIVED AND OF COMPENSATION PAID BY PRIVATE INSFR ANCE ASSOCIATIONS IN ITALY, BY YEARS, 1901 TO 1906 ^" [Source: BoUettino di Notizie s.U Credito e sulla Previdenza. August, 1906, and September, 1908.] Year. 1901 1902 1903 1904 1905 1906 Premiums received. $567,825 646,715 601,527 1,129,285 1,431,049 1,637,595 Compensation paid. Amount. Percent of pre- miums. S460,414 81.1 477,120 73.8 459.044 76.3 810,553 71.8 1.146,369 80.1 1,426,456 87.1 employers' voluntary motual associations. It was the avowed intention of the law to stimulate mutual accident msurance among employers by the formation of mutual associations accordmg to the German type. Such mutual associations may be organized by employers who together employ at least 4,000 persons whether m the same line or in different lines of industry. The organi- zation of each association requires the autliorization of the Govern- ment, and m addition there are stringent regulations concerning control, accountancy, and guarantee in order that the employees insured in these mutual associations may receive protection equal to that given to persons insured in the National Accident Insurance institution or m private insurance companies. Employers' mutual associations must be organized in writing, the articles of mcorporation to contain a list of members and establish- ments included in the association; also evidence of the deposit of the required guarantee fund and of the approval of the constitution bv aU the employers who intend to join the association, and, finall^ evidence of payment of half the annual insurance premiums which the national insurance institution would require for insurance of aU the estabhshments in the association, this initial payment to serve as a fund to begin the operations of the association. The constitution of the association must contain the usual regula- tions as to the constituency, the meetings, the administration, and i I hill 1'"^^ 1796 REPORT OF THE COMMISSIONER OF LABOR. the financial operations, such as the methods uf distribution of the employers among the risk classes, methods of settling disputes within the association, surveillance over the establishments belonging to the association, conditions of liquidation of the association, amendments to the constitution, etc. The articles of incorporation and the constitution must be sent to the ministry for approval or amendment, with all the necessary docu- ments, such as evidence of the payment of the required guarantee fund, a statement from the national institution as to the amount of insurance premiums which the association employers would have to pay, and a list of members, with numbers of workmen to be biaured. With the final approval of the constitution by the ministry the asso- ciation is legally organized. The expenditiu-es of the association are covered by means of annual assessments upon the membership, the amount of the assessments being based upon the expenditures for the preceding year. All these mutual associations which are autliorized to act aa sub- stitutes for regular insurance companies must guarantee a scale of compensation which is in no particular inferior to that estabhshed by the law, and to assure the solvency and abihty of the associations to meet the obligations assumed they are required to place guarantee funds with the Bank of Deposits and Loans, m accordance with the regulations of the minister. The requirements concerning these guarantee fimds contained in the law and the regulations are very strict, sin(;e they are the only protection of the injured workman or his family against a dishonest or mismanaged employers' mutual insurance association. For the employers' mutual accident insurance associations the guarantee fund must equal 10 lire ($1.93) per insured employee, but not over 250,000 lire ($48,250). In addition, a further guarantee is given by the provision that when an association is unable to meet its obhgations for payment of compensation the habihty reverts to the person responsible for the insiu-ance, i. e., the employer. The regulations concerning the guarantee funds of the private insurance companies mentioned above also ap])ly to the guarantee funds of the mutual insurance associations. The formation of voluntary mutual employers' associations pro- ceeded but slowly after the enactment of the first law, in 1898. The first one to organize was the Sindacato Subalpino, in Turin, on Novem- ber 30, 1898, with over 1,000 employers and some 40,000 employees in various branches of industry. The mining employers' mutual asso- ciation in Iglesias was authorized on March 31, 1899, with some 15 employers and some 15,000 employees. These were the representa- tives of two different types of mutual insurance associations, the one CHAPTER VII.— workmen's INSURANCE IN ITALY. 1797 consistmg Of a few large employers in one definite industry and the other of a large number of small employers in many differen7branches IVo more associations were formed early in 1900, the Syndicate League m Genoa and the Association for Emp^ers on Publ^ Works (Szndacatofra Impresan dVpere PubUiche), in Florence both consisting of several hundred employer, and from five to T^hLand rfir J-;!"" "■"• -•'^ ">" -»-"'>" *- *• »=« ..frr l^^"" ^^^ formation of voluntary mutual associations pro- tions tit: "f ^ r" ''^'^ ^^^" ^'^'^'^ ^h^ compulsory assod" tions, three voluntary ones were formed in 1904-for employment m naval ports, with headquarters in Genoa, April 5; f7sI2Tn Genoa, Apnl 15; and Sideros, for miscellaneous^du; tries G^oa' the Cisalpmo m Mdan December 20; and for miscellaneous indus^ tnes and buildmg trades, Genoa, December 21; and two in mel i'tne;' ' ""'^^ '' '"' ^"^ ^ ^^^^^' ^^^^^ ^- miscelllneous mtZllf,?^^^^^ '^-^^nce^ since from Se thi .. . f ""T '' '^ '^'^'^ P^^^"^^ ^^^^^^^^^ 150 per cent. c^on to ZJ! '^'"'^'^ P"'^^ "^^^^ ^^^ ^^' ^^tual asso- ciation to another, in view of the differences in the trade risks of mdustnes covered, the relation between the total amolt oTcor^- pensation paid and the premium seems, on the whole, to be a f avorSe one, mdicatmg a moderate administrative expense. 0™ro.S O. --..KS^^VO.^^^^^^^^^^^^ ,.3UHANC. .SSOCIATIOKS r8oun.e:BoUettlnodiNotiziesul Credito e sulla Previdenza, August, 1906, and September, 1908.] Year. Number of— Employ- ers. 1901 1902 1903 1904 1905 1906 («) («) 1,689 2,523 2,893 3,255 Employ- ees Insured. Amount of— Wages Insured. («) 62, 793 83,191 109, 687 152,587 16,037,116 6,861,861 6,985,353 11,273,337 16,220,045 21,278,521 Pre- miums received. Comjpen- sation paid. Average premium per- Average indemnity per— «51,840 61,928 66,854 283,657 464,943 627,292 943,313 44,552 53,878 187, 783 332,365 512, 539 Insm^ em- ployee. («) (*) 11.06 .3.41 4,24 4.11 $1,000 of wages Insured. $8.59 9.02 9.57 25.16 28.66 29.48 $1,000 of I $1,000 of wages premium Insured, i received. $7.17 &49 7.71 ia66 20.49 24.06 $836 719 806 662 715 817 o Not reported. PRIVATE AND COOPERATIVE FUNDS. miflrS ^'^'^^',^J^fJ?«^«f ^^ individual establishment (cassa prtvata) or of several estabbshments combined {cussa comorzude) represent a transition from the principle of insurance toSf of 1 1 1798 BEPOET OF THE COMMISSIONER OP LABOR. compensation by the incUvidual employer, although a private fund which IS supported by a combination of several employers closely ap- proaches an employers' mutual accident insurance association. The permission to private employers to substitute a fund for the obhgation of insurance was mainly due to the desire to preserve such funds where they abeady existed and also to provide for comparatively large employers, who could ascertain in advance with considerable accuracy the probable cost of accident comi)en&ation. As in the case of mutual associations, private funds require authorization, must fur- nish guaranties, and are subject to government control. A private fund may be oi^anized either by an individual estabhsh- ment or by several estabUshments in the same industry or in the same locality. The authorization of the ministry is necessary, and such authorization is granted upon petition, which must give all necessary information as to the estabhshments, together with a statement from the national insurance institution as to the aimual amount of insurance premiums which would be required to purchase insurance for the risk, and evidence of having comphed with the requirements as to the guaranty. The private funds are governed by their respective con- stitutions, which must state the scale of compensations paid. This scale must not be lower than that prescribed by the law. When the private fund is organized by se^ eral establishments joined for that purpose, the constitutions must state the perio«l for which such union is affected, methods of determinmg the coefficient of risk of each establishment and the contribution of each establishment, conditions for admission of other establisliments, provision for col- lective responsibihty, methods of amending the constitution, and Uquidatmg the fund if necessary. The ministry may mtroduce changes in the constitution of such funds with the approval of the council of state and publish them as royal decrees. For the private funds the guarantee fund must not be less than five times the insurance premiums in accordance with the rates of the National Accident Insurance Institution, if the membershif) does not exceed 2,000, and three times the insurance premium but not less than 40,000 lire ($7,720) for the largest funds. The same conditions rela- tive to the management of the guarantee fund — concerning dissolu- tion, reinsurance, examination of accounts, etc—which have been given in connection with the mutual associations, also ai)ply to the private funds. Three cooperative funds were authorized in 1899, one in 1901, three m 1904, two in 1906, and one in 1907; one of these suspended opera- tions in 1905 and one in 1906. At the end of 1906 there were known to exist seven such cooperative funds. One of these covered nearly 20,000 employees, two about 6,000 each, one over 2,000; the three remaining protected less than a thousand employees each. ] CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1799 OPERATIONS OF COOPERATIVE INSURANCE FUNDS OF ITALY. 1901 TO 1906. [Source: BoUettino di Notizie sul Credito e sulla Previden^a, August, 1906. and September. 1908.] - Year. Number of— 1901 1902 1903 1904 1905 1906 Employ- ers. («) («) 509 805 994 1,225 Employ- ees Insured. Amoimt of — («) 18,539 24,734 28,346 35,662 Wages Insured. $605,556 583,329 579, 216 1,826,369 2,319,157 2,813,982 Pre- miums received. ''$6,071 17,963 7,813 20,487 23,233 29,453 Compen- sation paid. Average premiiun per — Average compen- sation per — $3,214 3,919 3.495 5.304 8.343 14.992 Insured em- ployee. $a42 .83 .82 .83 $1,000 of wages insured. $iao3 3a 79 13.49 11.22 iao2 ia47 $1,000 Of wages insured. * Not Including 1 association not reporting premiums received. $1,000 of premiiun received. $5.31 ^$52. 94 6.72 21.82 6.03 44.73 2.90 25.89 3.60 35.91 5.33 5a 90 a Not reported. Eight private funds for individual establishments qualified in 1899 and 2 „. 1900. In 1903, 1904, and 1905, 11 nxore lere organic TuLV^""^' '° u'^'^' ""**^'' manufacturing establishment Tn lunn, had a membership of 3,600 and 1 of 2,800. Three of them are organized m connection with establishments employing from 1,000 to 2,000 persons, and 9 m connection with establishments employing ewer than 1,000 persons each. It will be umiecessary to ^CZt the detailed figures concerning each of the twenty or morf private funds existing in Italy at the end of 1906. The totll data hav'^Tea given m connection with the general discussion of the results of the operation of the accident insurance law. PBOPOSED BEFOBKS. The rapid increase in the number of accidents and in the num- cbc£ raTtht'L • "*? T""* T^^ '^' ^^^^°" ^ administrative nnfrff . ^ administration of the law, notwithstanding the vari- ous efforts at reform, was lax and open to criticism. As earlv as 903, dumig the parliamentaiy debates preceding the adoption of the amendatory act of June 29, 1903, both chambe,^ passed resolu tions requesting the Government to prepare legislative'^pTposaTst; the establishment of special tribunals for the adjudication of actions ammg under this law and for the sunplification of the judicial ir^ cedure in such actions. («) ' ""'"*' P'*^ In conformity with these resolutions, on May 31, 1905 a commis- sion was appomtod for the study of the Question TvTl! commis- ftdmittpH that tu^ 1 ^ •• . question, ihe commission admitted that the regular tnbunals-accustomed to consider eases accordmg to the well-established principles of the conZon law were not well adapted to sit in cases arising unde. tris^ecial TcT which was based upon a different conception'of the relat ons betweli ~ "' '^°""" «^^l^^^e «ulla Previdenza, T^O^T^ ' 07725°— VOL 2— 11 ^20 mm^- 1800 REPORT OF THE COMMISSIONER OF LABOR. however, that the ordinary courts had an advantage over special tribunals in the general sense of legal rights and the de&iite habits of legal reasoning, due to experience and to professional training. The commission did not see its way to recommend the organization of special tribunals, but admitted that the adjustment of claims should not be left entirely to the individual bargaining of both par- ties, because the workmen or their dependetit relatives do not have the necessary understanding of the correct value of their claims. It therefore suggested that in all cases the local administrative officers (pretori) act as intermediaries, representing the State and adjusting the claims on a basis equitable to both parties; that all decisions of the ''pretori" up to 1,500 lire ($289.50) be iinal and without appeal, and in such cases where larger sums are concerned the appeals be considered by the ordinary courts of appeal; that by appropriate administrative decrees attorneys at law be discouraged from inter- fering with the administration of the law; and that the fees of attor- neys and medical and other experts be regulated by decree. This plan, expressed in a draft of a bill published toward the end of 1905, came up for discussion in the Superior Council of Labor. In the last session of 1905 the council, in view of the serious abuses of the law in Rome, instructed the Bureau of Labor in cooperation with the General Office of Credit and Provident Institutions to prepare a careful report concerning the administration of the law, and this report came up for discussion in the first session of the council for 1907. The suggestion of the commission of 1905 to delegate the important judicial powers to the ''pretori" did not meet with the approval of the council. It was argued that these administrative officers had neither the time nor the necessary medical or technical training for the consideration of these claims; that they were not free from local influences, and were likely to be more influenced by the employers and insurance institutions than by the workmen. As to the best substitutes for such administrative intervention, the sug- gestions offered embraced special courts, an autonomous central insurance office in Rome, and the adaptation of special simplified methods of procedure in the ordinary courts. A careful study of all these suggestions and of the legislation and practice of other European countries formed the basis for a bill for the reform of administrative procedure in connection with accident insurance, which was introduced on March 13, 1908, by the minis- ter of agriculture, industry, and commerce, in the Chamber of Deputies. The legislative proposal introduced by the ministry is divided into two distinct parts. The first deals with the specific problem of dis- putes arising under the law and the second aims at a general reform of administrative procedure. CHAPTER VTI.— workmen's INSURANCE IN ITALY. 1801 The arguments in favor of special tribunals prevailed. The bill ZZT ^rT"'^'" "^ ^P^^^^^ P^^^-^1 - d-tinct commit sions for consideration of controversies arising under this law A commission IS to be established in the capital of each Province to have jurisdiction of that Province. If necessaiy, separate coi^ missions may be established by royal decree, upon recoLmendatTn of the mmister of agnculture, in separate districts (circondano) with jurisdiction over that district, which is then taken out of theTui^X tion of the proymcial commission. Thus the effort is to provide aU ndustnal localities with commissions conveniently locat^ To that there may be no hardship to the poor claimant ' Each commission is to consist of three members, the president of the local tribunal, the provincial physician, and the local chief eni neer, they fumishmg the expert knowledge necessary for the pix)per consideration of the claims-law, medicine, and entering ^^ th Jn L^r '/'^^'' '^''" 'P""^^^ '"^"^^^ i« ^ be much simpler tnan m the regular courts. ""pier Minors over 18 years may appear in their own cases, and married women do not require the authorization of the husband. AttorSS or counsel are not necessary. Proceedings must be oral, as a rule Briefs may be filed only by permission of the commission. Witn^l ^ay be examined by the commission, and in the examinat'oH witnesses, as we 1 as m the entire procedure, the legal rules of proct dure are not obligatory. s i uies or proce- Considerable stress is laid upon the technical features of the case the examination of which may be made either by the ent^e conT^ sion or by any one of its members delegated for that purpose ™ commission or the member delegated may visit the plL of accident or any other place necessary to verify the statement of the Sr^ employee or any witness. ^jurea Thus the commission is given the right and opportunity to inform itse f m a most direct manner with all the facts in the Lefo addition, It IS given the right to appoint outside medical or t^cLc^ experts when necessary, these experts to be assisted by the r^L tive members of the commission. The orders of the cLmS^n have the force of judicial orders. It may order provisionarp'^^s or the deposit of guarantee funds. Its final sentences m\,Ttl2 rit olTirm: '"""*'"^r' ^* ^'^^^ ^^^ •'^ -^^'i *« *"" -u^ or cassation in Kome on a wnt of error only The expenditures of the commission are to be charged to a special fund of the Mimstry of Agriculture, Industry, and CommerTe to which contributions are to be levied upon the NatiSTccTdeit Insurance Institution and other insurance institutions Exem^ Uon from stamp and registry duties are to be conferred ^ponaU^S m connection with the proceedings of these courts il ?f 1802 REPORT OF THE COMMISSIONER OP LABOR. The last twelve articles of the bill (articles 22 to 33) suggest various reforms in the administration of the law, which are almost all directed toward increasing the control over the claimants and thus preventing the abuse of the law through fraud and malingering. The proposals are important as indicating the practical difficulties which necessarily must arise in the administration of an accident insurance law unless proper methods are early taken for their prevention. One of the most troublesome details in such administration, even in cases of admitted vahdity, is the proper method of determining the exact duration of disability, to exaggerate which there is a frequent tend- ency among the injured employees. Furthermore, aside from the cases of malingering and of deception as to the length of disability, the possible carelessness in taking measures necessary for hastening recovery must be taken into account, such carelessness being due either to ignorance or to the desire to prolong the duration of benefits. To meet these difficulties, the bill undertakes to grant to the insur- ing institutions the right to exercise medical control over the injured person, such control to consist of visits of a physician representing the insurance institution. The bill further provides that the injured employee shall be subject to the visit of the institution's physician; shall appear in proper medical institutions incUcated by the insurance institution for the purpose of having a thorough medical examina- tion made in order to ascertain the results of the injury, or submit to such treatment which, while being without danger, may, in the opinion of the insurance institution's physician, relieve the conse- quences of the accident. If the employee without good reason declines to accede to requests for any of the three enumerated measures, his compensation may be partially reduced or altogether discontinued. While these proposals are mainly directed at the ignorance or carelessness of the injured employee, other measures are proposed* for the purpose of preventing or detecting fraud and malingering. The bill intends to deprive the employee of his right to compensation under the law when (1) he has simulated or exaggerated or actually aggravated the consequences of the accident, (2) when he has returned to work while continuing to receive liis daily allowance, or (3) when he has in any other way tried to deceive the employer or the insurance institution. Finally, the third important object aimed at by the new bill is to discourage unnecessary Htigation. The commission which prepared the bill recognized that frequently attorneys are responsible for fraudulent claims or unnecessary lawsuits, and the measures for counteracting these evils are directed partly against the claimants CHAPTER VII.— workmen's INSURANCE IN ITALY. 1803 tZ h?^f ^ ""^^^"^ ^^" attorneys or any other intermediaries The bill mtends to prohibit any attorney from offering S^seSs to the clamiant m such cases. Persons who offer theif o^ se"Ses Ld fo^rfi'^^^ T"" ^'"^"^ ^^ ^"^^ intermediariesTre Tbe toed for the first offense up to 300 Hre ($57.90) and for a second offense up to 2,000 Hre ($386). Officials who, haW receTved^fc^ of accidents, give information to intermediari;s so af to eTaWe Them ifZ' V"'""'? ''' '" ^' similarly punished. M cont^^^^^^ Sh ^^^^^f^^.™^ ^ P-y^ent of services rendered incorectTon requiS tfoa^^^^ "^T^ "^^^"^^" ^^ ^^^^^ beneficiaries may be required to pay m case of unsuccessful lawsuits. ^ r^entative for the e^plo^^l^ otTrXl^r ^'^^ ^"^^ ''^ accordance with instr^STJv n in 90T thT "" °r7-^" ^ criticism to which the law of T904 1 £ u^Zand ti^ ^'^ nence gamed through its administration, uncovetd manv ZZ weak pomts requiring corrections «nH ihJ ""^Z^^^^ ""^ly other suggested were the folloX TbeTtfr tfi T' ""T'^ "Ganges to include all injuries c3' dTmnl **f ""t'"" «^ »««l««^i'»g' Wting. carrying, eto. -21 1816 M it BEPOBT OF THE COMMISSIONER OF LABOR. NUMBER AND PER CENT OF ACCIDENTS FOR WHICH BENEFITS WERE PAID BY THE mJMBEB. f ««»«»•• Bollettino dJ Notizle «ul Credito Nature of injury. Mines and met- allurgy. Accidents in each specified industry. Bricks, pottery, and glass- ware. BURNS, SCALDS, ETC. |to|e parts of body,not Includlngeyes Several parts of body: Not Including eyes Includlngeyes....; The entire body Total. WOUNDS, CONTUSIONS, FK ACTUBES, ETC Right arm: Not Including fingers.. Including fingers.. Fingers alone.. Total. Left arm: Not Including fingers. Including fingers... i> Ingers alone . . Total. Both arms: Not Including fingers. Mudlng fingers... 'Ingers alone.. Total. Right or left leg: Not Including toes , „ ««, Including toes | 2, 697 480 Toes alone. Total. Both legs: Not Including toes. Including toes. Toes alone.. Total. Head and neck: Not including eyes Includlngeyes. Eyes alone... Total. Trunk: Chest Back......: Shoulders Ribs ...■.'.■.■"■■ Abdomen Inguinal region Other parts of trunk . Total Other parts and several narte enumerated ^"^ The whole body .".'.'." .".'.".' '^tSfesTete.'!!'.!*:°*!^^°°«' ^'^ i CHAPTER VII.— workmen's INSURANCE IN ITALY. 1817 VARIOUS INSURANCE INSTITUTIONS, BY NATURE OF INJURY AND BY INDUSTRY 1W2. e sulla Previdenza, August, 1906.] ' NUMBER. i i4 1818 BEPOET OF THE COMMISSIONEE OE I.ABOH. NUMBEB-Concluded. INDUSTRY, Both arms: Fingers alone.... All other Tot^ upper extremities: ^ ingers alone. Lower extremities: Toes alone AU other Head and neck; Eyes alone All other Trunk: Ch&st Abdomen... Other parts.. "J ■■ Total Otjier parts and several parts enumer All other Grand total CHAPTER VII.— workmen's INSURANCE IN ITALY. 1819 BY THE VARIOUS INSURANCE INSTITUTIONS RV VATtror. ^ 1902-Concluded. omuiiUNS, BY NATURE OF INJURY AND BY NUMBER-Concluded. Accidents in each specified industry. Leather and other animal products. Clothing. Paper and printing. 728 783 Building and con- struc- tion. Cars, ve- hicles, etc. 1,371 Trans- portation. 9»007 1,807 Electrical industry. Agricul- tural labor. AU other. 2,822 649 460 537 PER CENT. TotaL i 4 57,617 ff ! ! 1820 REtOKT OP THE COMMISSIONER OF LABOB. OF ACCI- NUMBER. fSource: BoUettino cU Notizie sul Credlto Nature of injury. BURNS, SCAIDS, ETC. |ingle parts of body, not including eyes.. Several parts of "body: Not including eyes Including eyes.. The entire bddy Total WOUNDS, CONTUSIONS, FRACTURE Right arm: Not including fingers S, ETC Including fingers. ■Fingers alone. Total. Left arm: Not including fingers tocluding fingers.. Fingers alone... Total. Both arms: Not including fingers. Including fingers.... 'Jngers alone.. Total. Right or left leg: Not including toes Including toes Toes alone.. Total. Both legs: Not including toes. Including toes... Toes alone :; ■ Total. Head and neck: Not including eyes Including eyes.. Eyes alone Total. Trunk: Chest Back.... Shoulders ;:;; Ribs Abdomen Inguinal region . Other parts of trunk' Total. Accidents caused by- Motors. Power trans- mission appa- ratus. Working ma- chinOTy. Eleva- tors, hoists, cranes, etc. Boilers and steam fitting. Explo- sives. 9 29 7 45 18 38 5 17 4 16 5 38 7 17 55 200 23 37 11 4 3 20 11 109 7 5 i 4' ==iLl OHAPTEE VII. workmen's INSURANCE IN ITALY. 1821 D^N^im''^ INSURANCE INSTITUTIONS. BY NATURE OF INJURY AND BY CAUSE 6 sulla Previdenza, August, 190G.] NUMBER. Accidents caused by — Combus- tibles, corro- sives, gases, vapors, etc. Land- slides and falling bodies. FaUs. RaUroad acci- dents. Naviga- tion. Electric conduc- tors. Instru- ments and tools. Loading and tm- loading, lifting, carrying, etc. Other causes. Total. t 195 321 313 481 250 258 91 158 70 181 128 161 127 184 1,174 1,744 73 111 43 15 8 54 18 322 193 1.847 285 36 104 529 88 3,082 12 21 16 11 11 21 12 104 2,873 926 338 396 960 470 6,826 IT !! '» i 'ii|B:l li Nature of injury. BOUNDS, CONTUSIONS, FRACTUKES ETC concluded. ' '^•~ Accidents caused by- ThewKrC^f;-^'^' parte enumerated. Tow wounds, conteion,, f^etu.^', Suffooation. Drowning.. Poisoning. . . " " Other lesions"" Left upper extremity; Fingers alone... ^• All other Both arms: Fingers alone All other Total w upper extremity: Fngers alone.... ^.. All other Lower extremities 1 oes alone All other.. ■"■ Total Head and neck; Eyes alone All other other. . Total Trunk: Chest Abdomen Other part^:::;;; Total Other parts and several par^'enumerate'd Totelwounds,contusions,fracture All other.. Grand total . .- CHAPTEB VII.— WOKKMEN 'S INSURANCE IN ITALY. 1823 I^telir ''''"''"''''" INSTITtmONS, BV NXT.BK Or imuKV AND By CAHSE NUMBEB— Concluded. Combus- tibles, corro- sives, gases, vapors, etc. Land- slides and falling bodies. 12 Accidents caused by — Falls. Railroad acci- dents. 857 8 3,916 18,329 1,150 9 9,901 Naviga- tion. Electric conduc- tors. Instru- ments and tods. 40 1 I 18,344 9,916 40 26 Loading and un- loading, lifting, carrying, etc. Other causes. 44 81 1 6,027 262 1 Total. 86 3 7,118 2,681 37 6,028 7,119 1,454 i 2 1,463 53,484 4 f 4 57,617 PER CENT. 1824 REPORT OF THE COMMISSIONER OF LABOR. i i; n The results of injuries are classified in three groups, death per- manent disability, and temporary disability. Combii'ied data for four years, 1899 to 1902, published by the National Accident In- surance Institution, have been used because they afford the advan- tage of larger numbers, from which the conclusions are somewhat more trustworthy than from other available data. These data are presented in connection with the study of the operationn of the national institution. A little more than 1 per cent of the accidents prove fatal, a little over 4 per cent lead to permanent d^ability, and nearly 95 per cent to temporary disability only The variations between industrial groups are important. The highest rate of fatal accidents is found in agriculture, 1.69 per cent of all accidents resulting in death; in minmg 1.68 per cent of all accidents resulted fataUy, and in building and construction 1 44 per cent. The high fatality rate of agricultural accidents is due mamly to the fact that in this industry only persons tending machin- ery are covered by the compulsory accident insurance law. Besides the reporting of minor accidents m agriculture is probably not so efficient as in other industries. The lowest fatality rates are found m clothmg, paper and printing, brick, earthen and glass ware, machin- ery, metal working, and textiles. For four years there was not one fatal accident m the clothing mdustry, and only one in the paper and printing industries combined. A more careful analysis of the results of industrial accidents is possible for 1902. The tables which follow not only divide the accidents into fatal ones and those leading to temporary disability partial permanent disability, and total j^ermanent disability but indicate for the cases of temporary disability the duration of 'such disabihty, and for cases of partial permanent disability, the degree of disabihty m percentages. Out of 57,617 accidents, 54,439, or 94 5 per cent, resulted in temporary disability only, and 2,716 or 4 7 per cent in permanent, but only partial disabihty, leaving only 8 of 1 per cent for the fatal cases and total permanent disabilitv cases combined. *^ Of the cases of temporary disability, the vast majority lasted a very short time only. Accidents causing disabihty of less than six days are not considered. Of the total of 57,617 accidents 27 666 or 48 per cent, caused disability for only six to fifteen dkys 'and 17,149, or 29.8 per cent, disability for sixteen to thirty days, so that m 77.8 per cent of the cases considered the disability did not last over thirty days, and in 7,356 cases, or 12.8 per cent, from thirty- one to sixty days. Even when permanent disabUity results from the a<;cidents, the reduction of eammg power is very small in the majority of cases. CHAPTER VII.— workmen's INSURANCE IN ITALY. 1825 ^U^\^'Ju^ ""^^."^ permanent disability, in 1,157, or over two- f^^: ctacTv'of'th'"*"^!^ ^'^^ ' *"' ° P- -'^^ ^'^^^ ot^ eammg capacity of the mjured, and in 576, or a little more than one-fifth, from 11 to 20 per cent of the earning capacity Zth^tZ more than three-fifths of all the cases of permanent Mty^uct disabibty does not exceed 20 per cent. The tables show t^e result llu'""" '" ^^"'^ ^'"^'"^ ^-"P -d -1- for each auTS ! 1 1826 REPORT OF THE COMMISSIONER OF LABOR. RESULTS OF INJURIES, BY (Source: BoUettino dl Notizle sul Credlto CHAPTER Vn.— workmen's INSURANCE IN ITALY. 1827 Cause of accident. Motors Power-transmission apparatus. Working machinery Elevators, hoists, cranes, etc. .*. Boilers and steamfitting... . Explosives [[ Combustibles, corrosives, easeis. etc Landslides and feuing" bodies". '..': Railroad accidents * " Navigation .*.'."" Electric conductors Instruments and tools Loading and unloading, lifting," carrying, etc „ . . Othercauses CAUSE OF ACCIDENT, 1902. e sulla Previdenza, August, 1906.J Accidents causing temporary disability which lasted- 6to 10 days. 11 to - 15 days. Total. 53 155 1,836 151 34 11 918 4,889 2,478 9 1 8 1,882 1,714 449 14,588 47 179 1,940 159 29 22 859 4,201 2,123 9 16 to 20 days. 5 1,583 1,607 315 13,078 28 94 1,192 127 15 14 637 2,735 1,454 3 21 to 30 days. 4 886 1,063 190 47 133 1,345 146 18 683 2,756 1,417 6 1 4 8U3 1,118 205 31 to 60 days. 61 to 90 d&ys. 8,442 8,707 37 112 1,183 112 11 28 580 2,245 1,359 6 4 6 527 984 162 7,356 8 21 168 20 2 9 74 377 335 3 ..... 83 166 27 91 to 181) days. Ovar 180 days. 4 23 69 6 1,294 6 32 235 210 1 29 119 20 757 4 24 2 Total. 11 73 56 35 3 217 224 721 7,757 724 109 120 3,795 17,510 9,432 35 6 29 5,800 6,806 1,371 54,439 RESULTS OF INJURIES, BY [Source: BoUettino di N'--t«>'» by royal decree GoLnment and nViXHlt'"'' ' 'Z^ '"^'^^ ''^ *^« on .une 0, .., by the ^^^^ T^^.:, ^IZ^Z'::^ "Setrrsr Td~^ -Sctiirn:^ -' '-^ (incoiSoL'ruiie^s Te sol^rJj *'^ 'r«*^ '^^ "recognition" actuarial science. In Sscusslf tt T? ^'^ '''' ^'^^''^^ "^ number of representatives of ^^ ^'^^''''Jf t'°° ^^^^^ by a certain lead to an exLre iSel'e "^^^^^^^ ^°^'^*'^^ *^** *^ -8^^* tions of such voluntary orgSzItLns th« ''°?'"' "^'^ *^" °P«^»- such danger was purely Srin«!v' '"'*^' ^"^^ «»* t^at to be an entirely volunlatv^tr^; «»nce incorporation was intended the society itself"^ and no orSni!!? ^""*^^, ""^y "P^^^ application of other hand the ministeTdS 'h 7 ""^ ^"'"■^'^ "^ "PP'^" On the the consultative comm^^itTafthe?"^^''''""' ^^^"^ '"'^''^^^'^ ^^ hm.ted only to conditions of the ! 'T'^''^'^'' ^^^ recognition be -— -— .!^!lll_^teformalw^ization of the society 1830 REPORT OF THE COMMISSIONER OF LABOR. ! i i» without regard to the actuarial basis. Such conditions would not, in his opinion, give any guarantee of security, and it would not be proper for the Government to grant the natural support of its recognition to any institution whose setmrity was not guaranteed in any way. The bill of 1877 was prepared in accordance with these principles. It proposed the organization of a central commission of mutual benefit societies to which any such society might apply for a "recog- nition," presenting complete accounts of its financial standing. In accordance with the broad conception of these societies as insurance institutions, not only sickness insurance but also old-age pensions, widows and orphans' pensions, forms of insurance which evidently required very strict adherence to actuarial principles, were to be permitted. In addition the societies were permitted to conduct educational work or engage in cooperative enterprises, such being the custom in a great many cases. For each form of insurance the society was required to keep a separate account and to demand separate contributions. A minimum number of insured was required, 500 for sickness insurance and 200 for old-age and life insurance. The nature of the constitution of the society and the method of investment were also regulated, but the most important provision was that permitting the recognition of only such societies as fur- nished evidences of a satisfactory relation between the obligations assumed and the means at their disposal. It was explained in the memorial that in order to obtain this satisfactory actuarial basis the recognized societies would have to avail themselves of mortaUty and sickness tables based as far as possible upon Itahan data and also upon foreign statistics, which tables might be prepared by the com- mission which was to include legal, mathematical, and insurance experts. Recognized societies were to remain under the supervision of the Ministry of Agriculture, Industry, and Commerce and the commission. The ministry could accordingly order an investigation at any time and cancel its recognition if the accounts proved unsatis- factory. In recognition of compHance with these stiingent require- ments of the law the incorporated societies would accjuire, in addi- tion to the rights of legal persons, also other privileges, such as exemp- tion from certain taxes, not only of the society as such, but also of the benefits paid to its members, and pubUcation of its reports in certain official journals at the expense of the ministry. This legislative project was prepared by the consultative commis- sion for labor and savings institutions after a study of the legislation of France^ Belgium, Great Britain, and Germany. This bill did not meet with the universal approval of the societies interested. The requirements for incorporation were considered too CHAPTER VII.— WORKMEN'S INSURANCE IN ITALY 1831 On June 11, 1880, the new minister of agriculture inH.,=f commerce introduced a new bill in th« Sp^^^! u •?**"^*'7, and the reauirement^. nf ih^ u uii Senate. He admitted that hand d1~Jthe n£,% ^k" ^"'■^ *«« '''^^^^' but on the other foritasTnSX'exJ:^^^^^^^^^^^ considered essential: mThe^Ltd^fv'™^/"?"'^^^^^ ^«'« -iet,; (3) a due vZntx:::fz'^^^jL:^: ::r.is:. (3) a certam minimum number of members- and Z T^ *^^^^^' of the earlier hill tL \ • "»<''"aed aU the essential features me earner bill. The most unportant diflferences werA th.t fiT appbcation was to be mad*, tr. tL i i • .. . ^^^ ^^'^^ t^a* the incoiporationwastobe^rSredbwhi^' i!n r"^ authorities and of the society was to be iTvestwi K ' ""^"^^ t^e^ctuarial standing from local P^ofesL^^'ormTaS^ ^^^at^^^^^^^^^ mission for the rontrni «f tu^ v.„ cj. • . * central com- lui luo control ot the benefit societies was nrpqAm^fl^ k..^ * composition was made fully reDreAaicu o, i«»i. n^e senate report on Decem^r irSi* nT ?°°»^'<'''. .^^ich brought in its as proposed byti comm£C ^ ^^^^^ *'''^'' "" '"^ text of the senate hill ihl • VVhUe adhermg somewhat to the riaily changrS tt" ir,1Z;;\1 the^l^rVh^-^^^ "^^-^ foreign law; wareSir:^ adaS to'th ^ '^'^'f ''''' '^'"^^ '' '^^ Italian workmen that the Z,f f**, ^ ^^'^^ requirements of the usefulif left todeVelon *„f n .^T^* ^""'^^'^ ^«"ld be more receive the benefils of bcolt^'r' *t* *'^^ ^'^""'** "^ -«««d to to any governmentafreSrrXr'^t ""! .'"'^J'^*^ themselres project of the parliamTntai^ 1 * - ^"^ *^^ *'"'^"° '^^- The -77^7—- LJ!!^!^ ^ commission, therefore, e xcluded aU niayo 1881. "*' """"t"* e commerc.o (MiceU), nella tomato deU' 8 67725°-voi, 2-U— 22 1832 BEPORT OF THE COMMISSIONER OF LABOR. I reference to the organization of a central commission of mutual benefit societies, the requirements of a due proportion between dues and benefits, the separation of the separate forms of benefits and their accounts, the demand for a minimum number of members, and the method of investment of the funds. It also excluded pen- sions for widows and orphans from the list of permissible benefits, feeling that that function required a stricter adherence to insurance principles than was desirable to exact from the mutual benefit societies. The bill, as amended, simply contained provisions for incorporation of mutual benefit societies by local judicial authorities, with very few provisions for control of such societies. This proposal of the parliamentary commission never came up for discussion in the House. The principles enunciated in the report of the parUamentary commission were, however, embodied in the next project of a law concerning mutual benefit societies, introduced in the Chamber of Deputies on June 21, 1883. The bill was referred to a new com- mittee, which brought in its report on February 19, 1884, introducing a few minor changes. The consideration of the bill was delayed another two years, and the bill was finally passed in the Chamber of Deputies on April 8, 1886, introduced in the Senate on the next day, reported by the committee on April 10, 1886, passed and became a law on April 15, 1886. This rapid enactment of the law after a discussion of ten years seems to have been influenced by a decided change in pubUc opinion and-in its opposition to some regulation of the operations of the mutual benefit societies, while on the other hand the Government has finally adjusted the law to the demands of the opposition and has abandoned the effort to introduce a system of careful (control of the financial and actuarial status of the recognized societies. PROVISIONS OF THE LAW OF APRIL 16, 1886. The law concerning the incorporation of mutual benefit societies, approved on April 15, 1886, states the requirements with which a mutual benefit society must comply in order to be granted such recognition or incorporation, the degree of control exercised subse- quently by the Government over such recognized societies, and the benefits derived by such societies from this recognition. The law applies to all mutual benefit societies witliout considera- tion of the occupation or economic standing of its mtjmbership, pro- vided they aim at one or more of the following objects: To assist tlieir members in case of illness, working disabihty, or old age, or to come to the assistance of the families of deceased members. The law care- fully avoids the word ''pensions'' and in a subsequent circular of July 2, 1886, the minister of agriculture, industry, and commerce CHAPTER VII.-WORKMEN'S INSURANCE IN ITALY 1833 The requirements for incorporation contfti-np<1 ;„ *k i manly constitutional. The c^nstitutiorof thf so'et ^ '" T admission must define the foUowin., Thl \ ^ ^ aPPlymg for society; its objects and aims c^ndS; f a ^"*^1"»rters of the of membei.; Jheir obliga^l^a^d "Ttl JheTeX T^ ^ ^'^"^"^ tures and investment of the properW and Ihl / "^ ^^P^'^'^'" conditions of a quorum- of Sf / ^ guarantees required; adopted; the requTremeni of IZ ^ ^ •**^ '''''*'"'^^ ^^^ resolutions of the executiXZSe J^d oMhTTd^ *" *'' ''''''''' '"^^^^S' mittee; the method ^f oJl^ation of th*? "^ " '""^'^o^' «>°>- functions; the mode of reXTtZn of t *''^^1 -«rk among mem- trade, and other functiorSitutionTfr "'''"^''T^ *-^« «^ provement. No exnendit,.™! "^^*'*"*'<»>s /<>r savmg and social im- than those specmed'^above Tr tTIv Tk*"' '''' ^'^^ "'''''^ P"P«^ Second, if a society recetv^, it •^^'' ^^^ '^'^ ""^ administration. permanent object,lieTgaetf rd" 'r*""^ ''' " ^'^"^ ^^ rately and the re;enue derived frl "Jr '°"' ""f ' ^' ^'P' ««?*- with the wishes of thrdonor ^''P^'''^*'^ '"^ accordance locaffvtrr^lrtSredto r - T ''-' '^"^^ •'^ -^« to ^^^ constitution certified by a^otartn ^PPl*''**?'"'. •«"«* be a copy of the mg the rights of legal pers^ns^ fh .'^ ^^'^^ '^'^^^'^y P°««e^- effect, and wishing to obtlTn ^L L r?- ""f ''^'° '^' '*^ ""'^^ ^''to must also make the reauS **'V**'ift">°al privUeges under this law, if necessary. ^""''^^ apphcation, adjusting their constitution^ 1834 EEPOBT OF THE COMMISSIONER OF LABOR. I i Societies in existence at the time when the law went into effect and having no such rights may be granted incorporation on application, if their constitutions conform to the demands of the law. Otherwise the constitution must be amended at a general meeting specially called for that purpose, and a certified copy of the amended constitu- tion with a certified copy of the minutes of this special meeting must be attached to the application. Societies organized after the law went into effect must furnish a certified copy of the constitution and of the procedure of the charter meeting of the society. After examining these documents in order to see that they conform with the requirements of the law, the court orders that the name of the society be entered on the register of recognized societies. In case of desired change in the constitution the same method of procedure as in original incorporation is required. The governmental control consists mainly in exacting reports and holding the officers of the society responsible for observing the requirements of the law and the provisions of the constitution. The officers of the society are individually and jointly responsible for the execution of their respective duties, for the correctness of all entries in the books and for strict comphance with all provisions of the con- stitution of the society. On the other hand, an officer who formally records his dissent from a resolution in the minutes, and who gives immediate notice of such an illegal resolution to the supervising committee, thereby is relieved from such responsibility, as is also an officer who was absent from the meeting of the executive committee when the decision in question was taken. Furthermore, an officer who knowingly makes false statements con- cerning the status of the society, or suppresses any actual facts in the accounts, or before the general meeting, or in court, is punishable by a fine of 100 lire ($19.30) in addition to the usual civil responaibihty. If suspicion arises concerning the existence of gross irregularities in the work of the officers or of the supervisory committee, this may be brought to the attention of the court, provided at least 20 members so decide, and if the court should find these suspicions well grounded it may take the necessary legal measures. If a mutual benefit society has failed to comply witli the regula- tions limiting the legitimate expenditures to certain [purposes, the court must, upon application either of a member or of the public authorities, make the demand upon the society to comply with the law within fourteen days, and upon failure to do so, must order the name of the society stricken from the register of incorj)orated societies. CHAPTEE VII._W0EKMEN'S mSURANCE m ITALY. 1836 authorities, 4ir7lS coS„H„ """"TT"' ^^""^^ *^« ^^'^ Tu • • 1 ^^" ^^^® expenditures are met must be incUnut^A pei^ons, and for this reason thi" Wnit on ' Z T °'" ?^ ^'^"' equivalent to "incorporation '^ l3 bn tJf,. ^^'^'^'^^''^^ «« are extended to the Lognized ^utfJt:^^^:^^'^^l?- from stamp taxes rpo-i^frAr + o^« 4.1. • "^^^^ ot»cieues. HiXemption tax, and frorcrS^anSe^S^^^^^^^ ^^P^'^ members from seizure and cesln ^ ^^"'^'^ **» *'^^ The legal status of the mutual benefit societies bfl« n^t i have as y^t%Vn\2lZZZt:!:lJZZ'^^^^^^^ sickness than those contained in Saw *^ ^"'^ "* ""^^ "'^ JetirrthfeS- :l:tT^t^J trr'^-'' ^-^«* the statistical data available ^ *""* ^^ ^^""^^^ ^'""^ STATISTICS OF XVTTIAL BEHBUT SOCIETIES. unStltSat'^SSw hT"*"^' '^'^^^* ^--«- -- 1885, 1894, and iS* ^*" ''°*"'^' ^ '^^^' ^^^S, 1878, While they are not all elaborated exactlv on tl,^ o many comparisons are possible, and Se six renon' ? "'• l^'^' siderable material for a studv of thJj . ^"Ports furnish con- Z ^"^ " ^^"'^y "^ *^^ development of these institutions MutuoSocco,«>, RomTmr' ' * ^'^^"^^°- Sta&tica delle SocieUL di (3) Ministero di AffricolfnrQ t..^ ^- far; - «---- -^^:^'^^'^^z^t^-^^, Anne^ alle Mede^izne, anoTlsst Rol xm"" ' ''"' ""''*"^°°« ^P"*^- (5) Muustero di Aericoltnr. t j ™' ^'"»- 1904. Studio Stotistico. Rol T^ ^ ^"""^ ^ ^''^ »! 31 decembre, I Mi i y J i, 1836 BEPOBT OF THE COMMISSION EE OF LABOR. NUMBER OF SOCIETIES AND MEMBERS. The number of societies of mutual benefit, their membership, and the proportion of the membership to the population is shown in the following table. In none of the six investigations was it possible to obtain the desired information from all societies, but it is believed that the number reporting is sufficient to make the data representative. The number of societies and the membership increased rapidly up to 1894. During the period 1894 to 1904 a material decrease has taken place, and it seems certain that tlie growth of mutual benefit societies has been interrupted and the efliciency of the law of 1886 as a stimulus has greatly declined. In 1904 the average number of members per 1,000 of population was only 27.82; so that, even if women and children are excluded, only a small percentage of ItaUan citizens gainfully employed hold membership in mutual benefit societies. In addition to the societies included in the next table there were four societies of raih-oad employees in 1885 and three in 1894; but as data for these could not be obtained for other years they have not been considered in this table. NUMBER AND MEMBERSHIP OF MUTUAL BENEFIT SOCIETIES FOR VARIOUS YEARS, 1862 TO 1904. [Source : Le Societal di Mutuo Soccorao, 1878 and 1904, and Annuario Statistico, 19a5 to 1907. Data are exclusive of railroad societies.) Year. 1862(a). 1873... 1878. . . 1885... 1894. . . 1904... Population. 21,929,176 27,132,848 27,962,084 29,300,268 31,191,564 33,282,850 Total number of societies. 443 1,447 2,091 4,896 6,722 6,535 Number of societies reporting memljer- ship. Number of members. 417 1,146 1,961 4,768 6,684 6,347 111,608 218,822 331,648 730, 475 936,686 926,026 Nimiber of members per 1,000 })opula- tion. 5.09 8.06 11.86 24.93 30.03 27.82 Average number of members per society. 252 191 ie7 153 142 146 a Data for this year do not include the Province of Venetia and the city of Rome, As the law for incorporation of mutual benefit societies was enacted after the investigation of 1885 was undertaken, only the last two investigations contain separate data for incorporated and unincor- porated societies. By 1894, 1,156, or 17.2 per cent, of the societies had obtained incorporation or recognition under the law; and by December 31, 1904, the number had increased to 1,548, or 23.7 per cent. Thus even nearly twenty years after the law of 1886 went into effect, less than one-fourth of these societies availed themselves of the advantages offered by the law. The effect of the law upon the development of the mutual benefit movement must, therefore, be considered very limited. For 6,347 out of the 6,535 societies the membership has been ascertained. Of these societies 24 per cent II CHAPXEE VII.— WORKMEN'S INStTRANCE IN ITALY. 1837 lai^er than tha! oT^eT^LtrlZT'tlf r^'"^ .^^^ Incorporation is therefore found t'o be an eS^of le^T '" t^**"^-' Le Society dl Mutuo Soccorso, 1904.] Kind of society. 1894. (a) Incorporated... Unincorporated. Num- ber. Per cent. Mutual benefit societies in— 1904. Num- ber. Per cent. Reporting membership. Total. 1,156 5,566 6,722 17.2 82.8 100.0 1,548 4,987 23.7 76.3 Num- ber. Membership. Per cent Number. Per cent. 6,535 100.0 1,525 4,822 6,347 24.0 76.0 Aver- age per society. 288,598 637,428 100.0 I 926,026 « Exclusive of three societies of railroad employees. 31.2 68.8 100.0 189 132 146 lowingstaC"n;;a XS?dLTt"S^ females constituted even onltenth o^t h A . . "^ "J*^*'""^ ^*^« societies. The interests f«tt1«i k ^**^ membership of the tion of ^^yiesi:^^jz'z-^jzi^z tt: 'i^r'" KStro^rtei^;, - It ^ti T?^- - - 25.1 per cent. societies and of the female members only MEMBERSHIP OF MUTUAL BENEFIT SOCIETIES FOR VARIOtS VPA.. BY SEX. VARIOtS lEARS. 1862 TO 1904. Source: Le Society di Mutuo So«orso, 1862, 1878, 1885, and 1904.] Year. Males. 1862 1873 1878 1885(c) 1904: Number. Incorporated societies Unmcorporated societiis^! 101, 410 197, 719 «299,544 531,047 Per cent. Females. Number. Per cent. 90.86 90.36 90.35 93.68 10,198 21,103 «»28,502 35,853 9.14 9.64 "8.62 6.32 Total mem- bership 111,608 218,822 » 331, 548 566,900 *ror 3.705^sirieuS 0%^""' "^ ""' "^^^*«^- 926,026 1838 BEPORT OF THE COMMISSIONEE OF LABOB. The following table shows that in 1904 less than 4 per cent of the societies reportiag sex of members were organized for females alone. The number of organizations admitting only males has increased from a little over seven- tenths in 1873 to eight- tenths in 1904. NUMBER OF MUTUAL BENEFIT SOCIETIES IN VARIOUS YEARS, 1873 TO 1904, BY SEX OF MEMBERSHIP. [Source; La Societk di Mutuo Soccorso, 1873, 1878, 1885, and 1904.1 Societies admitting— Number of societiei — Year. Males only. Females only. Both sexes. Report- ing sex. 1,364 2,091 3,762 l,fl25 4,822 Not re- porting sex. Num- ber. Per cent. Num- ber. Per cent. Num- ber. Per cent. Total. 1873.. 1878.. 1885 900 1,537 2,861 1,178 3,900 71.20 73.50 76.05 77.25 80.88 42 70 109 38 214 3.32 3.35 2.90 2.49 4.44 322 484 792 309 708 25.48 23.15 21.05 20.26 14.68 183 "1,138' 23 165 1,447 2,091 4,900 1,548 4,987 1904: Incorporated societies Unincorporated societies. Total, 1904 5,078 80.01 252 3.97 1,017 16.02 6,347 188 6,535 In addition to the active members of societies, beloQging for the benefits to be derived from such membership, large numbers of honor- ary and contributhig members assist them by their contributions or influence, thus introducing an element of private and organized charity into the activity of these mutual benefit societies. In 1873 (*) the number of such members was 19,263, or about 9 per cent of the active membership, and in 1878, 32,177, or nearly 10 per cent of the active membership. In 1885 the total honorary membersltip amounted to 52,763, of whom only 31,690 were contributing. For later years information is not available, except that on December 31, 1903, (^) the incorporated societies had 11,675 contributing honorary members as against a total of 259,914 active members, or only 4.5 per cent. The influence of the honorary members in the development of the mutual benefit societies seems to be decreasing. SIZE OF SOCIETIES. The distribution of the mutual benefit societies by the number of members is shown in the following table for the last tliree censuses, 1885, 1894, and 1904: o Society, di Mutuo Soccorso, 1878. & Society di Mutuo Soccorso, 1904. 4 CHAPTER VIT.— workmen's INSURANCE IN ITALY. 1839 NUMBER AND PER CENT OF MUTUAL BENEFIT SOCIETTF^? m i^Anrr >,x.„ GROUP AT THE END OF EACH ?EA|?'^^;^/rND^,"^.''^''^^^^°^^ " [Source: La SocieU di Mutuo Soccorso, 1885, 1894, and 1904.] Membership group, (o) Mutual benefit societies in— 1885. Less than 50 50 to 100 101 to 200 201 to 300 301 to 400 " 401 to 500 501 to 600.... 601 to 700 701 to 800 - 801 to 900 901 to 1,000.. 1,001 to 1,500... 1,501 to 2,000.. 2,001 to 3,000.... More than 3,000. Unknown Num- ber. } 1,768 1,194 422 153 68 36 21 16 13 8 18 7 1 3 1,172 Per cent. 1894. 1904. Incorporated. 36.08 24.37 8.61 3.12 1.39 .73 .43 .33 .27 .16 .37 .14 .02 .06 23.92 Num- ber. 3,649 1,779 620 249 102 54 35 26 18 11 26 5 5 8 138 Per cent. Total 4,900 100.00 6,725 54.26 26.46 9.22 3.70 1.52 .80 .52 .39 .27 .16 .39 .07 .07 .12 2.05 Num- ber. { 224 380 497 199 99 51 23 14 6 6 7 11 4 4 23 Per cent. Unincorporated . 14.47 24.55 32.11 12.85 6.39 3.29 1.49 .90 .39 .39 .45 .71 .26 .26 1.49 Num- ber. Total. Num- j Per her. cent. 1,268 1,543 1,231 367 188 98 47 26 13 13 8 18 6 6 165 25.23 30.94 24.68 36 3.77 1.97 .94 .52 .36 .26 .16 .36 .12 .12 3.31 100.00 1,548 I 100.00 1.482 1,923 1,728 '566 287 149 70 40 19 19 15 29 10 10 188 22.68 29.43 26.44 8.66 4.39 2.28 1-07 .61 .29 .29 .23 .45 .15 .15 2.88 4,987 i 100.00 6,535 100.00 « in the report ,„r 1«M the groups hegm with the even hundred, .. foUows: mZ~, ^. '^u.2^, .^. The majority of the societies are found to be very smaU. In 1894 54.26 per cent had not over 100 membe,^. In 1904 52 11 per cent to SsTd 18 irV^ *^ar "T'"'^' ''■'' P- cent fromToo hJTa^ t P^' "^""^ ^^ membeiB or over. Only 49 societies cation of aTr? "' °"T '' '' ^^^^ '^'^ »^«- d" any appS cation of actuanal prmciples would be in such small societies soctti^TmTsh ""'^ *^ incoT>orated and unincoT,orated societies in 1904 shows a very mteresting difference in distribution by size of membership. Societies with less than Ton ™1 k. constituted 39.02 per cent of the incorporated and 56 17 per cenf o" m ~°r-*«d -r*-^ those ^th a membeiilp^: Z to 199, 32 11 per cent and 24.68 per cent; those with 200 to 999 26 1^ TLTr '"'1 ''•'/ P^' '^'''' ^""^ t'^"- -itl^ I'OOO members and over Sren irof tT '*'^?''' '''''■ '^^ ?"* '"^^ comparison someX; ver^^tl: '*"'^*'^ "^^ * membei^hip of Ls than 100 17 7 28 87er IZ ■'^?r'"^l^' *'^''" V'"" * membei^hip of 100 to 99! cent; of those wLr,^.K \"'«-'--'^P «* 200 to 499, 34.8 pe; of those with iT,nn ""T^'^'T ^^ ^00 to 999, 34.4 per cent; ^d rated TTetonCcvr'^ and over, 38.8 per cent were inc^rpo- stronger tZS::^ZZ£ '^''' ''' ^^ ''' evidently mu'ch 1840 REPORT OF THE COMMISSIONER OF LABOR. OCCUPATIONS OF MEMBERS. Satisfactory data are unfortunately lacking concerning the occu- pations of Italian workmen belonging to the mutual benefit societies. In the following table is shown all the information avail- able on this subject. The classification here is that of the societies rather than members, and the large majority of the societies, 61.05 per cent in 1894, are unclassified. Besides, no similar data are available for the last census year, 1904. Some temlency toward differentiation may be noticed in this table. In 1878 81.30 per cent of all societies, and in 1894 only 61.05 per cent were unclassified as far as the occupations of their members is concerned. In 1885 66.13 per cent of all membership of mutual benefit societies were unclassi- fied as to occupation, and in 1894 58.50 ])er cent. OCCUPATIONS OF MEMBERS OF MUTUAL BENEFIT SOCIETIES, 1878, 1885, AND 1894. [Source: La Societk dl Mutuo Soccorso, 1878, 1885, and 1894.] Occupation group. Unclassified workmen Steam railroad employees Farmers and industrial workers. Veterans, retired army men, etc. Farmers and laborers Public and private employees. . . Merchants, clerks, travelingmen, etc Mechanics, metal casters, black- smiths, etc Teachers Workmen in food industry. ..... Shoemakers, hatters, tailors, saddlers, etc Textile operatives Boatmen , fishermen, and sailors . Printing trades Masons, marble workers, stone- cutters, etc Servants, coachmen, etc ] . Musicians and theater employees Woodworkers Tobacco workers [ Porters, loaders and unloaders, etc ;. Tanners, glove makers, etc . .' ." .' .' '. Barbers, hairdressers, etc Hackmen and street-raib-oad em- ployees Physicians, surgeons, pharma- cists, veterinarians, sanitary employees, etc Vamishers, painters, plasterere, decorators, etc Coflee-house keepers, liquor deal- ers, bakers, and confectioners. . Clergymen Potters, glass workers, etc. ...... Ushers , watchmen , and servants. Goldsmiths, jewelers, and watch- makers Miners '.'.'.'.'.'.'.'. All other professions and trades . '. Mutual benefit societies in- 1878. Num- ber. 1,700 Per cent. 81.30 28 13 20 13 12 40 50 22 7 22 24 34 20 18 Total 2,091 100.00 4,817 10 16 10 8 L34 .62 .96 .62 .58 1.91 2.39 1.05 .34 1.05 1.15 1.62 .96 .86 1888. Num- ber. 8 .48 .77 .19 .48 ,38 .19 .24 .38 '14' 2,940 7 564 225 142 18 66 37 21 74 129 29 39 36 63 34 17 50 4 20 25 36 15 13 30 14 4 11 Per cent. 19 "i35 61.03 .15 n.71 4.67 2.95 .37 1.37 .77 .44 L54 2.68 .60 .81 .75 1.31 .71 .35 1.04 .08 .41 .52 .75 .31 .27 .62 .29 -.08 .23 Membership. Num- ber. .39 489,556 4,192 60,026 36,276 20,309 4,764 10,137 6,161 8,373 8,611 9,449 6,059 5,463 4,838 7.624 4,558 2,240 4,891 2,164 1,967 3.310 2,585 2,721 1,594 2,415 1,726 1,603 1,413 Per cent. 1894. Num ber. 1,795 2.80 15,460 100.00 740,280 66.13 .57 9.32 4.90 2.74 .64 1.36 .70 L13 1.16 1.28 .82 .74 .65 1.03 .62 .30 .66 .29 .27 .45 .35 .37 .22 .33 .23 .22 .19 .24 2.09 100.00 4,021 29 701 410 241 56 59 75 36 92 143 33 55 50 78 37 43 64 11 39 32 43 25 30 22 18 5 12 14 16 8 89 6,587 Per cent. 61.05 .44 10.64 6.22 3.66 .85 .90 1.14 .55 1.40 2.17 .50 .84 .76 1.18 .56 .65 .97 .17 • ow .49 .65 .38 .46 .33 .27 .08 .18 .21 .24 .12 1.35 Membership. 100.00 Num- ber. 581,609 87,087 84,526 54,292 29,526 14,300 14,102 11,350 10,652 10,346 9,260 8,177 7,746 7,384 7,222 5,118 4,274 4,184 4.173 4.018 3,626 3.678 3,534 3,213 1,935 1,852 1,588 1,628 1,435 1,155 641 10,862 Per cent. 58.50 8. 76 8.50 5.46 2 97 1.44 1.42 1.14 1.07 1.04 .93 .82 .78 .74 .73 .52 .43 .42 .42 .40 ..'17 .36 .36 .32 .20 .19 .16 .16 .14 .12 .05 1.09 994,183 100.00 CHAPTEE VII.-WOEKMEX 's I^SUEANCE m ITALY. 1841 ™^« O^ 0««ANrZATION AND OF INCORPORATION YEAR OF ORGANIZATION OF MUTUAL BENEFIT SOCIKTIES _J^^;^;;^^^^;esoc^ ' '^^■ Mutual benefit societies in existence at end of year. Year of organization. Prior to 1850 1850 to 1859 1860 to 1869 1870 to 1874 1875 to 1879 1880 to 1884 1885 to 1889 1890 to 1894 1895 to 1899 1900.... 1901 ;: 1902 1903 1904 Unknown. « Organized 1850 to I860. 6 Orgamzed 1861 to 1870 « Organized 1871 to 1875. * Organized 1876 to 1879. ThA foKl^ 1 ,, ■ ''Organized 1876 to 1879: 1904 are particularly SeriLTCr."^ '^' ^^"'^ °* ^894 and those t^S :heirr%To~:in ''''' '''^'' ^^ ^^"^^^ organized before 1895 But fh« n* T °°* '•«P°rted, had been eties (exclusive of thetl^reTrlirolTZf. 1894 showed 6,722 soci- - 25.3 per cent, of the societt tve bten'dV 1' T^'"''^ ^'^««' in lo94 and 2,917 in 7004 u • . A»y4, 4,153 were m exisfpn^A 29.8 per cent,' werrdSvfd"""' *'^' '^""'"^ ^^^ *- ye.rs7SZl 4^ It is desired to show here tho ^ffi • registration (incorporation) of the h°fif ''^ '^^ '*^ ^°' ^'olunUry tab esuppliessomeinformation Jtn J "if * '°^'^*'^' *^»« foUowing of this right of incorporatTon C ° eTL f ^%' '^'' '""''''^ '"^^^^ "«« IS greater among tl.; older societies «no rated 88 72 46 58 67 53 51 Year. 1900 1901 1902 1904 Total. Number of societies In- corporated. 59 67 66 74 64 al,fi06 a Not including 42 societies incorporated by royal decree, years not reported. CHANGES IN MEMBERSHIP. The list of the societies is not very stable from year to year, many societies dissolving and others being formed ; there is also a considerable degree of change in the membership of these societies. In the follow- ing statement the gain and loss in membership is shown for 1885 and 1903. Unfortunately the data for 1885 are for all societies and for 1903 only for incorporated societies, the data concerning the member- ship of the unincorporated societies in 1903 not being available. For this reason no satisfactory comparison of the data for the two years can be made. The incorporated societies are usually laiger, stronger, and probably subject to fewer changes in membership than those which are not incorporated. The changes of membership in 1885 among all mutual beneiit societies were as follows: Number of societies reporting 3^ 705 Effective members at beginning of year 535, l8x Members admitted during year 88, 935 Per cent of members at beginning of year 16. 6 Members lost during year 57, 216 Per cent of members at beginning of year 10. 7 Net gain during year 31, 7 19 Per cent of members at beginning of year 5, 9 Total effective members at close of year 566, 900 In 1903 the changes of membership in the incorporated societies were as follows: Number of societies reporting i, 412 Effective members at beginning of year 258, 346 Members admitted during year 19, 842 Per cent of members at beginning of year 7.7 Members lost during year 18 274 Per cent of members at beginning of year '. 7. 1 Net gain during year 1, 568 Per cent of members at beginning of year .6 Total effective members at close of year 259, 914 As is shown by the next table, the loss of membership is mainly due to failure in payment of dues. In the incorporated societies out of a total loss of 18,274 members in 1903, 10,916, or nearly 60 per cent, were dropped for that reason. CHAPTEB VII.-W0KKMKK'S XKSHIUKeE IK X.^.. 1543 LOSS *F EFFECTIVE MEMBERSHIP n,TR,„„ , (Source: Le Sodet4 dl Mutao Socco,«, 1904.] Cause of loss. Kt I t> Loss per 100 Number lost. \^^ <*nt of j membe Death... Withdrawal:: mfc"^''^ *" payment ofdues' Other causes Total total loss; I tepin^SI' of year. 3,981 2,220 10,916 1,157 21.8 LS 12.2 .0 4.2 .5 59L7 as BENEFITS. relief. In 1885, 99.4 pi^eni:^ ^^ T^'« ^ granLg'Jck were granting such relief. Societies orL«' T^ "? ^^°^' ^^'^ P^"" <=ent mutual relief other than sick bSt/iHtr'™'^ '**' ''^^ <^ though somewhat more common now tZ tt ! '^ ^^'^ exceptional, addition to sick benefits a ve^We „,iK *^f ^^.y^*^"^ ago. But ii^ otherf orms of relief, which SoTin Z/n*"^ '°"''*'^^ ^"™^' "^any ^^''^"T AT END OP Ve!kS^^,'^S!"=^ ''-"''^° EACH lONI, OF [Source: Le SocieU dl Mntao Soceom, 1885 ,1 t ' '^' ^'^''^ '*«• Kind Of benefit. ^^^'' 31 jDecember 31, ^^^ ' 1894. necember 31, 1904. Incorporated societies. Num- ber of so- cieties Unincor- porated societies. Total. Sickbenents.. Contmuo^ benefite or I,eIisVom:• 3, 739 99. 4 I (a) Chronic diseases j J. 545 41. i 62, 256 Invalidity dueto-iidusWai-at^ilV'^^ 47.9 (c) dents Rfn JJ1° ^'<^ows and oroh^ oingle pajTnents : ^"**^ Old age Chronic diseases ^d\^te(%^"^^'*°y 71.8 per per cent of them pay ot^ rt^olenSVe" Z^ " "^ ^^^^^ ^^ 1 1846 EEPORT OF THE COMMISSIONER OF LABOR. In case of industrial accidents, most societies grant benefits equal to those for ordinary sickness. The number of members of mutual benefit societies who received sick benefits and the number of days for which benefits were paid are shown in the following table for the years 1873, 1878, 1885, and 1903. The data for 1903 are for the incorporated societies only and include 69,029 cases of illness, an average of 29.1 cases per 100 members. These societies paid out $265,295 as sick benefits during the year 1903, an average of $1.09 per member, $3.84 per case of illness, and $4.32 per member receiving benefits. NUMBER OF PERSONS RECEIVING SICK BENEFITS AND NUMBER OF DAYS FOR WHICH BENEFITS WERE PAID, 1873, 1878, 1885, AND 1908. [Source: Le Society di Mutuo Soccorao, 1878, 1885, and 1904.] Year. 1873 1878 1885 1903 Number receiving bene- fits during year. Number of days for which benefits were paid. Toted. 45,786 67,229 104,386 659,258 PerlOO members. 24.35 23.26 22.55 625.00 Total. 984,539 1,612,216 2,102,881 61,293,923 Per member. 5.24 5.23 4.54 65.52 Per case of lUness. ffi 618.7 Per member receiving benefits. 21.5 22.5 20.1 622.0 a Not reported. 6*Data are for incorporated societies only. FINANCIAL STATISTICS. The report for 1895 does not contain any statement concerning the financial status of the mutual benefit societies, and for 1862 the data are quite incomplete and therefore of little value. For the remaining years for which reports were made the data are reprodu(;ed in the few tables which follow. Not all societies furnished financial statements, but the number of societies which did furnish them is sufficiently large to make the data representative, if not accurate as to totals. During the period of 31 years the proportion of revenue received from each source has not changed very much, though the total income has increased from $619,110 in 1873 to $2,804,758 in 1904. The regu- lar contributions of the active members still represent by far the most important source of revenue, nearly two- thirds of the total. Voluntary contributions and dues of honorary members, which also partake of the nature of a voluntary assistance, increased about 4 per cent between 1885 and 1904. The remainder of the revenue is derived from investments and business enterprises, and this has not changed much, amounting to about 30 per cent of the total. In 1904 a consid- erable difference is found in the per cent of revenue from each source in the incorporated and unincorporated societies. The income from other sources, which includes income from investments, constitutes 37.8 per cent of the total revenues of incorporated societies, while in the case of the unincorporated societies this income amounts to 23.4 per cent of the total. H CHAPTEB Vn.— WOBKMEn'S INSUBANCE IN ITALY. 1847 REVENUE OF THE MUTUAL BENEFIT SOCIETIES, 1873, 1878, 1885, AND 1904. [Som-ce: Le Society dl Mutuo Soccorso.l88S and 1904 Data or« r^r. i m, • *i . and 3,566 in IS^ffor mifhe n£Slfer"'noI iporST''"" ' ''^ "^ ''"^ Year. Income from — Investments. Contributions of active members. 1873. 1878. 1885. Amount Per cent of total, 1904: Incorporated societies. Unincorporated soci- eties Total, 1904. f 118, 142 195,630 278,040 19.1 19.6 19.0 Voluntary con- tributions and dues of honor- ary meml)6rs. Amount. («) $425,590 644-308 970,089 633,491 1,141,791 Per cent of total. Amoimt Per cent of total Other sources. 1,775,282 68.7 64.5 66.4 53.7 70.3 6a3 128,252 36,500 47,730 99,984 102,727 202,711 4.6 a6 3.3 8.5 6.3 Per Amount **^* of total. Total income. 7.2 S47,126 i 7.6 123,171 ! 12.3 164,404 11.3 * 446,065 ' 37.8 *380,700 23.4 $619,110 999,609 1,460,263 1,179,540 1,625,218 *826,765 29.5 i 2,804,758 a Included in income from other sources. 6 including Income from In v^^;;^;s^ For the year 1903 more detailed information as to the various socTeties ""'" " '""'^''''^ '"' '' ^^'"^^^ ^^^ ^^^ incorporated namelf S^^/oir^'"'"''' amounting to $1,542,275, over one-third, namely $531,045, represents gross revenues of the cooperative stored and other enterprises. It is impossible from the data avallaSe T determine what proportion of these gross revenues represented profit REVENUE OF INCORPORATED MUTUAL BENEFIT SOCIETIES IN 19(B. [Source: Le Society dl Mutuo Soocorso, 1904.] Soimie of Income. Real estate. Interest Amount. Total capital revenues. Ton JriK"J-°"^ ""^ ^*»^e members Contributions of honorary membere," etc." Total contributions of members. Gross revenues from: Cooperative stores Other enterprises " . " " Tp^f ^°.^.^ ^°^ revenues . . ij-xtraordmary revenues $25,996 264,292 Grand total. 290,288 595, 337 15,231 610,568 Pw cent of total. 1.7 17.1 1&8 LO 425,385 105,661 39.6 27.5 6.9 531.046 110,372 34 4 7.2 1,542,274 1 loao deUUfrilrf 1878 ldl8?5 *"^H ''r'^ T^^^^^^^^^^^^^ for 1903. For 1904 o„^^ thf/ T, ^^"° ''l *''" '«<=«T«'-''ted societies cost of adnuistration ^ the total expenditures for benefits and the 677250 ™!r V ^^ ^^" '" "**'^^ expenditures, are 1848 REPORT OF THE COMMISSIONER OF LABOR. given. Comparisons for the later' year are therefore somewhat unsatisfactory. The expenditures for the years 1873, 1878, 1885, and 1904 were as follows: EXPENDITURES OF MUTUAL BENEFIT SOCIETIES, 1873, 1878, 1885, AND 1904. ISource: Le Soeletii dl Mutuo Soccorso, 1885 and 1904. Data are for 1,103 societi«s in 1873, 1,901 in 1878, and 3,602 in 1885; for 1904 the numt)er is not reported.] Expenditures for— Year. Benefits. Administration. All other purposes. Total. / Amount. Per cent of totAl. Amount. Per cent of total. Amount. Per cent of total. 1873 $260,463 492,356 688,551 643 71.5 6&0 $67,338 122.210 268,763 16.6 17.8 25.8 $77,294 73,574 85,697 19.1 10.7 8.2 $404,995 688,140 1,043,011 1878 1885 1904: Incorporated societies Unincorporated societies.. 566,127 876,017 60.2 65.6 o 373, 769 a 459, 573 39.8 034.4 939,886 1,335,590 Total, 1904 1, 442, 144 63.4 o 833, 332 36.6 W W 2,276,476 a Including expenditures for all other purposes. b Included in expenditures for administration. The comparative importance of the various forms of mutual benefit is shown in the following table, but unfortunately the data for 1903 do not include any but the incorporated societies. It is therefore somewhat difficult to tell what the tendency was as. Permanent disability Superannuation Unemployment other Total. 1873. Amount. $191,301 25,564 5,346 9,499 620,404 («) 8,349 260,463 Per cent of total. 73.4 9.8 2.1 3.7 6 7.8 (^) 3.2 100.0 1878. Amount. $304,753 37,154 8,782 21,140 6 114, 130 (^) 6,397 492,366 Per cent of total. 61.9 7.5 1.8 4.3 6 23.2 (0 1.3 100.0 1885. Amount. a$427.450 59,493 24,513 12,102 6135,027 6,328 23,638 688,551 Per c«nt of total. 62.1 8.6 3.6 1.8 6 19.6 («) .9 3.4 100.0 1903 (incorpo- rated societies only). Amount. $266, 656 41,306 10,287 35,933 60,309 149,011 18,349 ^81,851 Per cent of total. 45.8 7.1 1.8 6.2 10.4 25.6 3.1 100.0 a Including $6,743 for temporary disability and $2,737 for maternity benefits and nursing. 6 Including superannuation benefits. c Included in permanent disability benefits. d Not reported. CHAPTEE VII.— workmen's INSUEANCE IN ITALY. 1849 The total assets of the societies, and also the average assets „er society and per member, are shown in the foUowing table for the vlri- ous years reported. There is seen to have been an almost constant growth not only m the total assets, but in the average assets per S ety and per member. The average assets of the incorporated ESs are more than three times that of the unincoT,orated sTcietie^ Thtb Zll f /I"'"'^ ^^ *^" *"'^"'' "'^'^be.^hip in the incorporated socll Ues, but the average assets per member are also considerably lai^er^ more than twice as much. ^ larger ASSETS OF THE MUTITAL BENEFIT SOCIETIES. 1873, ,878. 1885, and 190.. [Source: Le Society di Mutuo Soccorso iSRiianH lorv* t^ * .a 188=, and l.STS^^'^iMTnS^^^^^di^t'^^l^^i^'f^ >- 1^. 3,=» Year. 1873 1878..... 1886 :;;;;::; 1904: Incorporated societies . Unincorporated societies Total, 130-1 Total assets. Average per society. Average per member. $1,806,013 4,080.341 6,214,762 7,114,285 6,858,055 13,972,340 $1,648 2,093 1,766 4,684 1,522 $8.56 12.45 11.72 24.77 11.61 2,319 15.92 The next table shows for 1904 the distribution of both incorporated and unincoiporated societies by the amount of assets Sr oS half of the societies (54.08 per cent) ar« found to own less thin $96^ about one-third of the societie-s dd no ^^^ *^ i. *^°^' and under S9,650, and 0^3 63 pe" cen T^n ^^ITZ'^ '' *''' data being available for th!reZi^^T2Zo^t T^f^-r"' "" ....„ „ „. .„„„ .„„„ ,^^^ ^^ __^_^_^_^ __ ^^ ^^ ^_^__^^ [Source: Le Society di Mutuo Soccorso, 1904.] Amount of assets All societies. Under$193(l,0001ire) $19J and under $965.. »y<)6and mider$l 93o 1?^^^°^^"°^®'' $19,300. J!^',??^J°d under $48,250 $9fi,500 to $193,000 Over $193,000....::: Not reported.. Total 1850 EEPOBT OF THE COMMISSIONER OF LABOR. PEOPOSED BEFOM OF ITOTTJAL BENEFIT SOCIETIBS. Onlv a very smaU proportion of the workmen of Italy were able to^ot tie eiting voluntary societies in which the ent^e bu^Jn o the cost of insurance falls upon their own resources. I" J^'^Jhe Counca of Providence and Social Insurance appomted a special corn- Son for the study of necessary reforms in the status of the mutua benefit societies. After over a year of work the commission reported a bill for estabhshing a system of government subsidies to sickness Lurance societies. The fact that the proposal of this special com- Son received the approval of the whole councd makes this plan a matter of considerable importance. ', • , • . „„,„^ ,« « The main provisions of the proposed plan, which is to serve as a substLte for the old act of 1886, are a^ follows: In addition to the nonre^tered societies and those registered under the new aw, there fs to be created a third group of so-called authorized so^eties^ The requirements for registration are practically left unchanged. But for Shorization the requirements are considerably -<>- «t-g-J^ The societies must be of a certain size, namely, not i<^th^^ 200 active members (the statistics quoted on page 1839 -towed that l^s than on^fif th of the societies had the necessary membei-slup) . Thoy must grant a certain minimum of benefits, namely, (1 aJl necessary med cS and surgical aid from the very first fay of sickn-s^d a least for six months; (2) a sick benefit of at least 1 lura (19.3 cent.) ne7day for adults, and of one-half lira (9.7 cents) for children 16 yeai^ and under, frU the fourth day of sickness till the end of hree moTths and at least Qne-half that amount for the succeeding three months Special provision is made for maternity benefits, which m ^ew of the recent act establishing compulsory matermty msurance for working women, is now of minor importance. This matermty beneBt must cList of 'a daily benefit of rK"?J\';Vtud The dues o' Havs Dart of which may precede the birth of the child. The dues ol ?h2 authorized societfes'must be computed with conside'a.^n for the special needs, but must not be less than one hra (19.3 cents) ,>er month In add tion to individual mutual benefit societies, federa. Sons of such societies are permitted, both in the registered group a^d in the authorized group. The recognition as well ^ authoriza. Si" left to the minister of agriculture, industry and commerce, and the authorized societies are to be subjected to stncter supervision of the Government. ^ n • n^ The object of this authorization is to provide a group of ^^^7 sound and carefully supervised mutual benefit societies, to -hich su^ stantial subsidy is to be granted by the f t^^'^'^l, ^^^^^^^ J^'J^ purpose a special amiual appropriation of two miUion hre (»386,000) walpropos^d. This fund is to be divided among aU the authorized benefit societies in proportion to their membership. The system pro- i CHAPTEB VII.— workmen's INSURANCE IN ITALY. 1851 posed is to include additional subsidies for invalidity insurance in the foUowing way: Each member of the authorized mutuaZnrt so^iet^ who IS insured in the National Old-Age and Invalidity wlnceTrLtf tution IS to count as two in this distribution, and oL one share ? to go to his society, and the other to his private account i^ the ofd agl msurance fund. Mor^ver, another substantial benefit ku>T> extended to these authorized mutual benefit societies. TheLtional a cei^aVi rf *^ '^""''''^ ''"*^*"*'«'' ^ pennittJto t^t a central institute for sickness insurance, and to enter into aereement. with authorized benefit funds, or federations of such blefiSrto msure their members a continuation of the sick benefit o oThaW dtaSonTSk^rr ''' '^°™^' '^* «^ ^^ -^ ^- ^^^'^ KATBBNITY mSTTBAKCE. While the general condition of sickness insurance in Italy is stiU very unsatisfactory, since only a smaU proportion of the w^rS population enjoys the benefits of such insurance and the Stlte^ done very httle except provide conditions of incorporation a ver^ strong and very mteresting movement toward compu^ry in^™ In at least one branch of sickness insuraiice, was sta^rted Z uZZtiZ the last decade-that of maternity insurance, which very reSnS was successful in accomplishing this result. ^ recently By "matermty insurance" is meant insurance of medical or finan c'SidSr^^ *° *'' ""*'" '"' ' *^^^ P^-'l befort^Jd^fte; The theoretical question may be raised whether such a form of msurance may properly be considered a branch of sickn^s LurTnc/ 2. ,hkM .^' "^ ^r*' ""^^^^ ^''d fi^*°"'^I assistance in c^e of childbirth IS often rendered, usuaUy in comiection with generaTsXi insurance mstitutions. This is the case not only in L compu W system of sickness msurance in Gennany, but also L the volSyS- ness insurance mstitutions of Italy. But it is the insufficiency of the voluntary system of sickness insurance, its failure to includeTll thote who are m need of it, and the evidence of the special urgency of t eh msurance for a working woman during childbLh, thaf cr/ati tS movement for maternity insurance in Xly. It is Wry LteJLtiL to «r^si on" *'L"''°^'' ^' *'^ P^''^^ °^ *»^« internal r?o^ gresses on workmen's insurance aU the reports and discussions on matermty insurance were furnished by iLian delegates~the Itahan legislative work in comiection with that problem be^rsteonJ evidence of the influence of these reports ^ The information obtainable from the sLx censuses of Italian mutual benefit societies concerning their activity in maternity iZr^nclk somewhat meager. Wliile it shows a rather rapid growtH never^ theless demonstrates the very limited extent of such relief E 1852 CHAPTEB VII.— WOEKMBN's INSURANCE IN ITAI.Y. censuses of 1862, 1873, and 1878, unfortunately, do not show thk ;~ at all, c;mbining it probably with ot^ Jor^-f s.k b^^^^^^^ fitc. The census of 1894 contains no financial data. Thus only a com farisolbetween 1885 and 1904 is possible; and -n f^/h- ^^ matemitv benefits are combined with all other benefits for nursmg. ri8?5 384 "cieties out of 3,762, or 10.2 per cent, were gmng such benefits in 1894, 451 out of 6,725, or only 6.7 per cent; and m 1904, S out' o? 6 535 or 8.8 per cent. The total expenditure for this pSpt:; in S'as far as'obtained by that investigation, was only 14,182 Ure ($2,737.13), and later data are not available. SPECIAL PRIVATE MATERNITY INSURANCE INSTITUTIONS. The organization of a private maternity insurance "«*ftutio" was first nroposed before the workmen's insurance congress m Milan m ^4 3tre plan proposed was made the object of a vigorous agita- tion bv many organizations of Italian women. A thorough study of theauestion was undertaken by the Italian Hygienic Society, and m 1898 it prepS the constitution of a maternity insurance institu- tion and hougt the institution has never been realized the plan of ir proposed organization is nevertheless of some luterest The IbirtoMl e projected institution was to grant financui assistance ?^T ' i4jlh^^^¥&tS 'Zr^'i:^^ ?r ctSu^s rrSvtt^St, a"c^:rdi:^o: schedule which was to take^e at La^t 300 days of previous membership. A reserve fund was to be at lea^t •^"" «i«J^ °^ li ^ „f ^^e annual surplus was payable, Se 7'5'p ct of twfsuX was to be redistributed among the Ictte member The administration was left to the general meeting of all iTiTers and officers were to be elected by this meeting. iZrprn, which also failed, was proposed by the Sayings Bank of^olSna It was a scheme of individual saving rather than insur- ance It was contemplated to issue special '' maternity saving books "only to girls under 16 years of age who are employed in manual labor or whose parents are so employed, to be subject to the Genera rules 'folavings accounts, except that the savings so made general ruies loi ^ ^ childbirth; and as an encourage- Z:ilt:^^^Z^^^^^ of 200,000 lire (S38,600) was to be "ea ed the interes't of which was to bo distributed -noug the owne^ of thei special maternity accounts. Only in cases of childbirth m marriageTr^thin thefirst 300 daysof widowhood, were these savmgs '"The'fct^'plan which materialized was conceived in Turin. A lealte Fof the defense of the interest, of women was organized m CHAPTER VII.— WORKMEN 'S msiTBAxr^^ ^ S INSURANCE IN ITALY. 1853 iiinn early m iSQ'^i an^ « in Turin ea'rly in'SC^LlIT v" t^ -'T "' ^'^'''^^'' ^^'^ maternity insurance fund. S^ZJZTJVT '' ^''^'^^^^ - organization committee and in the hT *^« j^ague appointed an established. According t„,f !• ''^?"^'i''»g of 1898 this fund was enable its active m^^t^^^^^^^^^^^^ « «- aim of this fund is S and after childbirth. The totalTerioT 7"-^ ^°'' '°'°« *^« before normaUy given is 30 days, wuLtcrefn"""^ ''^^^^ ^""'^^'^ are birth, special provisio^ V™;^ /^^"^---ompanying chUd- The normal period is divided So ;«?* °»aximum of 45 days, days after chUdbirth. In case of m "' '^ ^^^^ ^^^^''^ ""d 15 only the second term is paid for °^^*™*g« '>'• Premature labor, The daily benefit for the period i« i sn r . given only upon proof of actCh^ f ^^ ^^^ ''^''^^' and it is djtions exacted Tre that E Iman t"" """ ^''''- ^^^^'^ •^- of admission to memberahin 7hT .'"** P^-^gnant at the time place until nine moS^te^a tlTont' ''''Tl' """'^ -* ^ membei-s' dues be regularly paT °»«nibe,^hip, and that the Membei. are divided inrtlTee clai's" a^ ""^''^""^ '«— honorary; but from a financial nnin/T^^^*'''^' contributing, and are hnportant. ContTbTti^' '^^ ^^IT "'^ '^^ ^* *^« ''*-- association from humanitarian 7ZiHt ^^""T ^^» J^^^ *!»« into three groups-founders X '^f IT'' *^^^ "^ '^^'^^'^ (»193) as a lump sum; l£ memberwW .""k ''" ''"''' ''">'' ^^- lire ($9.65) at once, either in Zn^'o^i^cZT^.'" ""* '^ '^^'^ '^ ing members, who agree to contribute 2 .^^0"'.' """^ ^'"^tribut- at least 5 year«. Active member pat .0 r"''^ ^"^ "'^""'^ '«'• month. f^moers pay 50 centesimi (10 cents) per An interesting subsidiary function nf *i awarding of premiums to mXS who tak'^r'^K"" ^ '^' ^"^"al Cu'r:n^"'r ""' P^'^-'--ndtdy vlit^^^^ '"* "'^^ ^' *'^- ^o1:!^^'^^']!^^^i^-^^^ be expected expected, but by experiente ifia^ rXf, r.T' "" *^-^-« this rate m view, the financial s^h, * .? *'' ^° P*"" *^«nt. With the following computatlT: " ^^ *^" association is seen from With a daily benefit of I 50 lirp r^o . x . normal amount of benefits per eaSi Jl, T^^ "'"'^^ '« ''^y^' ^he or 1,800 fire ($347.40) for each 1^0 IT ""T '° ^^ ^^^ («8-69), ^^!!^!^f!^!!^^i!^ost:T^^^^^^ without takini ^"i^^^^r^^^^^riT^-—----- !!!2^i_The amiual member- " Henri Sc^d^kl^^TTTT- — ^ii«annual member- International dtl'ecUnrdTTV^?^^^^^^^^^ tenue . Busaeldorf du fT^^i^^^ J- A.n^ee« Scial^^M^ti^^,^ 1854 BEPOBT OF THE COMMISSIONER OF LABOR. ship dues of these 100 members amount to 600 lire ($115.80), or only one-third of the necessary cost, leaving 1,200 Ike ($231.60), or two-thirds, to be obtained from contributing members or from other charitable sources. Yet 6 lire ($1.16) per annum is considered quite high for dues, considering the wages for labor in Italy, the old-age insurance institutions not daring to demand more than that. Thus a voluntary system of maternity insurance in Italy seems to meet the unsurmountable difficulty of excessive cost. The provisions of this societv were somewhat modified («) m 1904, when the society was recognized under tlie law of 1886^ An effort was made to adjust the membership dues to the risk of maternity, though in a rather crude way. The dues are 35 centesimi (7 cents) per month for women under 21 years of age, 55 centesuni (11 cents) per month for women 21 to 30 years old, and 45 centesimi (9 cents) per month for women over 30 years of age. The number of members in 1907 was 494, and the number of cases assisted only 121, or less than 25 per cent. Nevertheless, the membership dues were not sufficient to support the society. Five more maternity benefit societies are known to have beea organized— one in each of the cities of Milan, Rome, Florence, and Brescia in 1905, and one in Bergamo m 1906. In the MUan societv the membership dues vary from 1.20 lire (23 cents) to 9 lire ($1.74) per annum for members under 20 years of age, and for all over 20 years of age they are 9.60 lire ($1.85) per annum, while the total maternity benefit must not exceed 30 hre ($5 79)' The society in Rome, while offering a benefit equal to that of the society at Turin, exacts as dues only 25 centesimi (5 cents) per month. The society of Florence gives a daily benefit of 1.50 hre (29 cents) for twenty days before accouchment and for an equal period after accouchment, making a total benefit of 60 lire ($11.58), and also exacts higher dues— 45 centesimi (9 cents) i)er month for members under 21 years of age, 65 centesimi (13 cents) for members from 21 to 30 years, and 55 centesimi (11 cents) for those over 30 years of age. , . , ^ ,.r. i. • • The society at Bergamo charges membership dues of 40 centesimi (8 cents), 60 centesimi (12 cents), and 50 centesimi (10 cents) per month, respectively, for the same three age groups as shown for the Florence society, in addition to an initiation fee of 1 lira (19 cents), and grants a benefit of 40 lire ($7.72). ^ The society at Brescia charges 40 centesimi (8 cents), 55 centesimi (11 cents), and 45 centesimi (9 cents), respectively, for the same three age groups, and grants a daily benefit of 1.50 lire (29 cents) for thirty days, or a total of 45 lire ($8.69). a Henri Scodnik, L'Aesurance Maternelle et lee Caisses pour la Matemit6 (Congr^s International des Assurances Sociales, 8« session, Rome, octobre, 1908). The variations show thpt ih^^ • th^e societies, which are part Lh 3"^/- "''"^"^^ ''^^ ^^ -^ A great stimulus to .,/"'^"^.^«f -supporting. temity insurance" ve/bvth "^'r* ^ *^« ?-"«- of nv- ^l-regulatinginlSeXwm^Sr^ ^'^ ■'"°! ''' ^««^^ of Article 6 of this law specificajfyToSbitl ZT? '°'' ''^'^«°- <") withm one month after chUdbirth S .!. ^^P^oyment of women may be reduced to three weeks providedT^"°°*' "^'^ '^ Period tificate signed by the bureau of Ene of .^''T*'': ^^^^^<^ cer- r^ides, certifying that the state ofhT, ,^- '""*"*^ ^ ^l^<=t she without any harm to herself! perfomTh;^ *^** '^^ ""^y, to be employed. Thus the law iitLT '°'" •^^''^ ^« '^^^^ abihty, accompanied by an If^ ^ . ^ P*"«^ ^t legal dis- natural that in' both clSu^TtLZr' '"^f ' ^^ '' ^^ thjs law wa^ accompanied by r^olutL^^^Ttf *^^ ^'^''P^^^ of called upon to prepare a plal ^T£ , t\^^^ Govermnent be maternity insurance instifuSn in Jw ^''^^T"' «* '' •»»««'^al obligatory for all those fema e ;orke^ ?J membei^hip should be -mely, employees of mines, f^J^^lT^tZo^ '"^ "''''-' ^ xxv.sxxo.xxox or xhk .r^^, «, ^^^ estaffi^s^:^roSX°trr^^^ for a bill to agriculture, industry, ^nd coZnltZZ^TT'^' *^" "^^^^^ of Labor to undertake an investSr 'i^ *^^ ^*"^'''» bureau of who axe covered by the h^SZlS^^^^. *" '^^'^^ ^o"- undertaken m 1903, and the report nubli!?!;. . ^be mvestigation waa statistical mvestigation of that bureau Tt "" T' ^'^ *he fix^t ber 1, 1902, to November 30 1903 «„? ^7'."^ *^^ ^^^^ I>«'em- employees in 2,654 estabUshm;nts ' "'"'"'*"** ^^2,365 female According to the Italian census of JQn, *», Ployees and then- proportion to tb«w',''^ ''""''^'- °' '«°»ale em- shown in the follo4g^aS *°*'^ '''''^^' "^ ^"'Ployees I NUMBER AND PER CENT OF TEMALE E Industry group. -AJl Other." |Totalnum-| ber of em- ployees. 1,002,728 162.883 458,302 971, 781 2,595,694 Female employees. Number. 20,219 19,353 366,571 324,673 730,816 'Belgium, offi^d;;^:^;;^— —- ^ : — \__^^^^^>8h 28 14 ,_. 1856 EEPOET OF THE C0MMISSI01.ER OF lABOE. The total number Of females emplo^di.^^^^^^^^^^ to the census of 1901, was 730,816. On the ot^ - ^^^^^^ tical office of the Ministry of Agncultu'^e nW ^^..^..li^hments subject to the law of June 19 19 . ^^^^^^^ .^Ti^ T>ww n?NT OF FEMALE EMPLOYERS IIN r-^v. NUMBER AND PER CENT OF nfflcio del Lavoro. Basi TecnichediunaCassa ^source: Ministerodi Agricoltura,Industria^eC^ommer^^^ Female employews. Industry group. Nuin))er Total num- Under 15 years O^^r 15 years ofestab-p ^jgr of I of age. 1 oiage. lish- employees, ments. 1 > • > Per Number. ^^^J. Number. ^^^^ Per cent of „ . , 1 total Total. em- ployee*. 374,711 249, 464 421,643 228,888 3,407 1,700 54,039 23,202 12.0 7.2 17.3 26.8 24,931 21,799 257,921 63,469 88.0 92.8 82.7 73.2 28,338 23,499 311.960 86,671 7.6 9.4 74.0 37.9 Mines, metallurgy . mechan^ , ical, and chemical industries j^ ^^ Food products g* 323 Textiles 12, 670 All other m 4. 1 143,993 Total 1 ' ^ ^f 1 974 706 employees, 450,468, or 35.3 Thus out of an aggregate of ^^J^f^^^'^lJ^o, or 81.7 per cent, per cent, were fe^d^; but oj the^e^^ony ^^ , ^^ ^ ^^^ ^^^^ ^^ ^,^ ■were over 15 years oi age, aggregate. "Rnrpau of Labor embraced only 2,654 The investigation of the Bure^" J ^ , ^eat, but these estabhshments, <^^\^l'f^,\S iZ^^es between .the ages of 15 estabUshments ^^^P^^^f ,'S'female"«iployees over 15 yeas of age, and 54, or 46.8 per cent "^-^^^^^P J^ sufficiently accurate, which makes the results of th« ™'J^ statistical results of this In the follo.ving table -^^^bv ' he^^^^^^^^^ of actuarial investigation, somewhat ^imphj^d by ^ ,1,, ^irth details. The table shows, by the four indust g P ^^^^ ^^^^^^^ rate per 1,000 fuU-year e^l^^J J^ « ^^J^d the average wage employees between 6 ^^^^^^^^-^ ^•''"^""^* '"^'"'' '"^ of women giving ^^^^^ *" "^^J^ between the dues necessary finally a computation of the r^atio ^^^^ ^^ ^^^^ to cover the cost of matermty insurance ^^^ ^^^^^ employees. T^«/-f£ilytt,Tr fhlturths th'e daily wage, equal to one-half the ^J^yj^. '- ^ thousand fuU-year workers. The birth rate was found to be only 45 per^tno .^ ^^ wlule it is 120 per thousand J'>^ ^^^^^J "J'^^^^^poftion of umnarried CHAPTER VII.— WORKMEN *S INSURANCE IN ITALY. 1857 half the wages for 30 days, and 0.45 of one per cent of the wages for maternity . benefits amounting to three-fourths of the wages for 30 days. ^ BIRTH RATE AVERAGE WAGES, AND PROPORTION OF WAGES NECESSARY Trt INSURE MATERNITY BENEFIT, BY INDUSTRY GROUPS im [Source: Ministero di Agricoltura, Industria^e Co^-^o. Ufflcio del Lavoro. Basi Jecniche di una Cassa Industry group. Num- ber of estab- lish- ments. Mines, metallurgy, me- chanical, and chemical industries Food products.. Textiles AU other '.'.'.'.'.'.'.. Total 244 90 1,643 677 Num- ber of female em- ployees Nov. 30, 1902. 7,029 1,595 134,770 28,971 2,654 Com- puted number of full- year em- ployees. Num- ber of full- year work- ing women per 1,000 em- ploy- ees. 5,834 1,085 120,778 25,998 172,365 153,695 830 680 896 897 Num- ber of cases of child- birth among the wage- work- ers. Num- ber of cases of child- birth per 1,000 full- year work- ers. 271 42 4,683 1,897 892 6,893 46 39 39 73 Aver- age daily wage fe- male em- ploy- ees. SO. 23 .25 .22 .30 Aver- age daily wage of those who be- came moth- ers. Premiums necessary to insure a "niu- ternity bent- fit for 30 da\-3 (expressed in 10,000 parts of the wages.) When I When benefit benefit is J of wages. 45 .23 SO. 26 .26 .23 .32 36 34 25 46 is} of wages. 55 51 38 ,26 30 45 BILL OF 1905. The results of this investigation and the discussion of the problem Of maternity insurance both by the council of provident institutions («) and by the superior council of labor C) resulted in a bill which was mtroduced m the Chamber of Deputies on May 27, 1905 (0 by the mimster of agriculture, industry and commerce. The bill aimed to estabhsh a system of obligatory maternity insurance, limited to women between the ages of 15 and 50, employed in mines, factories and workshops. ' '^^"iic5>, For this purpose a national institution or fund was proposed ..ath headquar ers m Rome, to be administered by the National Old-Age the sam? ^ Insurance Institution, as an autonomous section of In this institution the insurance was to be compulsory for all women of the class and age designated. The benefit necessarA^ was placed approximately at three-fourths of the daily wage for 3o\lavs rather than a flat per diem rate, which would have no rein'"; t he local variations m the cost of living, as th^^ vagesdoto a great « Atti del Consiglio de Previdenza (Ministero di Agricoltura Indii«fria a C^^ ^ Atti del Consiglio Superiore del Lavoro. Ill Sessione, 1904 c Bollettmo dell' Ufficio del Lavoro, Vol. Ill, 1905. 1858 REPORT OF THE COMMISSIONER OF LABOR. extent. It was also thought proper that the employer share with the employee the cost of this form of insurance. The bill proposed to group the wages, contributions, and benefits into seven classes rather than to leave the determination of either to special computation in each case. This slight deviation from abstract justice was justified by consideration of administrative simplicity. Accordingly the following wage groups with the corre- sponding contributions and benefits were prepared: CONTRIBUTIONS AND BENEFITS, BY WAGE GROUPS. [Source: BoUettino dell' Ufficio del Lavoro, 1905, Vol. III.l Group. DaUy wages. Annual contributions. Daily benefits. 1 Lire. Under 0.60 0.61 to 1.20 1.21 to 1.80 1.81 to 2.40 2.41 to 3.00 3.01 to 3.60 3.61 and over Under $0.116.... $0,118 to $0.232.... .234 to .347.... .349 to .463 .465 to .579 .581 to .695 .697 and over Lire. 1.20 2.40 3.60 4.80 6.00 7.20 8.40 $0,232 .463 .695 .926 1.158 1.390 1.621 Lire. 1.00 1.00 1.35 1.80 2.25 2.70 3.15 $0,193 2 .193 3 .261 4 .347 5 .434 6 .521 7 .608 The annual contributions represented two days' wages, or about two- thirds of 1 per cent of the annual earnings, based on the maximum wage of each group, except in group 7, in which the contribution is limited to 8.4 lire ($1 .62). The daily benefits represented three-fourths of the maximum daily wage of the group, except that in the first two groups a flat rate of 1 lira (19 cents) per day was established, being for some employees even higher than the daily wage, and in group 7 the daily benefit was limited to 3.15 lire (61 cents). Other proposed sources of income for this institution were fines and penalties collected for noncompliance with the demands of the law, and private contributions and donations. But the membership dues have been adjusted to cover the cost of insurance. They were to be paid by the employer, who was to be permitted to deduct one-half of it from the wages of the insured. Every three years, or oftener, if found necessary, a technical revision was contemplat(^d and the amount of contribution could then be changed if necessary. The rates suggested in the bill of 1905, amounting approximately to two days' wages, or about 0.67 of 1 per cent of the annual wages, are somewhat higher than the rate obtained by the investigation of 1903 (0.45 of 1 per cent). The report justifies this increase first, be- cause in the statistical investigation miscarriages were not taken into consideration, and because due weight was not given to women em- ployed only a part of the time. The expenses of administration must also be taken into consideration, even though they would not be very great if this form of insurance is managed largely by the old-age and invalidity insurance institution. The elimination of the female em- OHAPTEE VII.-WOBKMBN'S INSURANCE IN ITALY. 1859 PJTon,' ^° n" ^^ ^'^'■' °'^' ""^^^ ^«r« i°«l"ded in the investigation of 903, will naturally not decrease the number of birthT^e^y^^lr rially and therefore will increase the birth rate. BILL OP 1907. Notwithstanding the active support given the bill of 1905 by manv cib Tn *'T' '' r^'^ ""'' ^"'"'"^"d active attentfon^iT the v<>flr<5 lator TK-, \i ■ i , . . report until more than two years later. The Ministry of Agriculture, Industry and Commerce bpnf /'a^ TK^«^ • • , . ^^ ^" ^'^^ i^^^s Of the new mcum- nnrf iA,, commission admitted all the contentions brought in su^ por of the preceding bills. It stated that in the opinion of the ma o^t ofl s iZ "'•'" '* "^ also desirable that the State shLltTh" cost of this insurance equally with the employer and employee but, it ttdZlT r '"TT ^ Government ove, to thi^pSof v^ew coi;rte7=rd^^^ i zi^xcer -r. w^^^ w^ile the amount of ^^^^7^1 ::tZ--':}'^t^ («5.79). In making this change, the commission areued thtt tU gested imposed a burden of only^i^cInTeSi (^T'^f ^"'^ ^"^- upon the women insured, and iZZTZ ^ItlZ^lZT poorest employees, while the benefit of 30 ]Z 7*^70? ^! for thirty days, or the fuU wages for about twenty-two days BILL OP 1909. The report of the parUamentary commission of December 20 1907 . ." ^ollettino deU' Ufficio del Lavoro, 1908 Vol IX t> ^7q ^ bill in Zacher'sArbeiterversicherung im Au^la^de H^ft V. r ««™^ ^xt of the w Henri Scodnik'8 L'Assurance Mate™^l W 7 A ' *'' P' *^- ^^""^ »«»* International des A^uxancrs^^^C-l^^n^^^^^^^ 1860 BEPOBT OF THE COM MISSION EB OF LABOB. :i session, and a new bill was introduced on March 29, 1909. This new bill was practically identical with that reported by the commission on December 20, 1907. The one important change concerned the rate of membership dues. Instead of a flat rate of 1.50 lire (29 cents) per annum for each em- ployee from 15 to 50 years of age, the rate proposed in this bill was 1 lira (19 cents) for those from 15 to 20 years old and 2 lire (39 centn) for those over 20 and under 50 years of age. This change was based mainly upon the great difference in the maternity rates for women of these two different age groups. (") It has been computed that this an- nual rate for women 15 to 20 years of age is 0.3 of 1 per cent, while for women 20 to 31 years of age it is 8.4 per cent. The statistics of women at work in Italy (^) shows that women from 15 to 20 years old constitute 38.5 per cent of all female employees over 15 years of age and women from 20 to 55 years of age 58.7 per cent. A rate of 1 lira (19 cents) per annum for the former, and 2 lire (39 cents) per annum for the women from 20 to 50 years of age will evidently average only a little more than 1.50 lire (29 cents) per employee, and yet be more equitable, in view of the different maternity risk, than the flat per capita rate. Another change of some importance was that of denying the right of benefit in the case of intentional abortion, while the cfises of normal abortion or miscarriage were treated as ordinary cases of labor. In none of the bills proposed and here discussed has any effort been made to furnish different rates for married and unmarried employees. The parliamentary commission brought in a very favorable report upon this bill in June, 1910(0- The commission again put forward the principle of state subsidy and found greater encouragement in the new cabinet, which followed the ministerial crisis of Decem- ber, 1909. Instead of the earlier demand for equal contributions from all the three parties concerned, a compromise was reached in the proposal that to each maternity benefit of 30 lire ($5.79) the State contribute a subsidy of 10 lire ($1.93). This represents the only important amendment proposed by the parliamentary commission. A month later the entire text of the bill as presented by the com- mission was adopted by the Parhament without any changes, and on July 17, 1910, the act became a law, thus establishing the first national institution for maternity insurance in the world. a BoUettino dell' Ufficio del Lavoro, Vol. XI, aprile, 1909. b La Donna neir Industria Italiana (Pubblicazione dell' Ufficio del Lavoro, SerieB, No. 5, Ann. 1905). c BoUettino dell' Ufficio del Lavoro, Vol. XIII, June, 1910. CHAPTER VII.-W0BKMEN'S msURANCE IN ITALY. 1861 PROVISIONS OF THE LAW OF JULY 17, 1910 - and children. Onl, sThtoil' r^^pr^Sd ^^^ "' r""^" are covered by the new maternifv ft.nW ^ ."f ''^^ ^y *^'« ^a^'er act female employees of the SftT^f^ r^' **" * ^"*^*' exception of equally fa/oraWe elts '**' '" "^-"^ '^''''' P-^^'- »* least J^J^ =Sntrtrrltu?th^an?r-sl ''''V'' mother shall discontLue toi t '7, f "" '"^ °^ '^'^^^^ '^^ also be remembered that 1 hran5 ^ ^7'" "'.^^^' ^** '* ^^'^ minimum for sick benefit luJlll^^i'^Z^t'lLi^ "^"*' Tfter parturitL Authorirvt "t '^ ^"^ ^"^^ *^« «-' -eek to reire thatThe t:S:^^Z!:ilv^;z:iZ^Tsr is ^ven to b^e^aS frSgTheten^r^^^'^ ^ ^•'-"-- A "^'^s/yV^^'^^^s^ro'. trtitrdr "*«. ^v^ ^-^• employees to which the act aSies namelv I'^'^Z"^ ^^«'° «" between the ages of 15 and 50. £ 'womTn [s to T "" T.''"' contribution is one lira flQ 1 P»„fc^ ^^ ^'®*'^ '^^'^ the 50 years old, two 1 re (38 6 een s) o7tZ"'"l 'k' '°'' ""'"^'^ '' *« are to be paid by the LpCL f.^^^^e '''''''' ^^"^ ^^"- onIt,ronf rm%t*?a:ero? th^ '""^ 7^'°^^^' ^'^ ^^^ '^^'l-t the share of the el 0'!^^^ I f "^P oyee. Any effort to raise In case of falire^o?^ e° 1T ^f '^"«''°- ^^ punishable by a fine, contributions, r:Z^:::t^^l^Zr.^ ^l-equired benefits must be naid to tharr. o„^ ^u -^ . """^^ ®™P^<>J ^^s. flie usual 1862 REPOET OF THE COMMISSIONEB OF LABOR. Other revenues of the fund, foreseen in the law, are fines collected from employers for noncompliance with the requirements of the law, and gifts or legacies or other miscellaneous contributions to the fund. An indirect contribution from the State is represented by the assumption of the cost of administration and the granting of other privileges, such as freedom from taxes and registry fees for all docu- ments in connection with its administration. The maternity fund is intrusted for administrative purposes to the National Old-Age and Invalidity Insurance Institution, though tJie finances of the two institutions must be kept entirely sei)arate. The seat of the new institution is therefore in Rome. The maternity fund is to be administered directly by a special committee, appointed by the administrative council of the old-age insurance institution. Provision is made for representation of both employers and employees on that committee; one-third of the committee to consist of the former and one-third of the latter. These representatives of both the employers and employees are to be nominated, however, by the minister of agriculture, industry, and commerce from the colleges of prud'hommes (coUegi di prohirviri) of the industries in which women are employed. The financial organization is also intrusted to the National Old-Age and InvaUdity Insurance Institution, though the accounts must be kept separately. During the first year of the appHcation of the law this institution is to advance the necessary amounts to the maternity fund, to be repaid in five annual installments with a 4 per cent rate of interest. Annual reports to the Parliament concerning the activity of the fund are requu-ed of the minister of agriculture, industry, and com- merce, these reports to contain all necessary suggestions concerning the revision of the actuarial basis of the fund. All the details of the appUcation of the law are left to the regular tions, which by the act were required to receive formal approval by royal decree within six months of the approval of the original act. The act is to go into effect three months after the publication of the regulations. OLD-AGE AND INVALIDITY INSURANCE. NATIONAL OLD-AGE AND INVALIDITY INSUBANCE INSTITUTION. In its system of compulsory insurance against industrial accidents Italy followed to a great extent the example of Germany, but it looked to France and Belgium for models of a system of old-age insurancti, and the National Institution for Insurance of Workmen against InvaUdity and Old Age (Cassa Nazionale di Previdenza per la Inva- lidita e per la Vecchiaia degli Operai), established by the law of July 1 7, 1898, is an institution for voluntary but subsidized insurance, and CHAPTEE TII.-WOBKMEN's IKStTEAKCE IN ITALT 1863 ?Sn'inSrnr ^^'^^'^^^ ^ '""^ corresponding F.nch and r^^^z t:z/z v-.tr r '--. --™^ — insurance has also a history !f ^^It'. ^^'**'° "^ voluntary efforts. "^^ "^ "^^'■'y *^e°ty years of persistent HISTORY. A biU providing forTucMn™ u ^ '^^^^ ^^"^ «^ ^*' «« 1859. This law did not Lpose Tyfinl T'^k',-' ^^" "" '^""^ ''■ 1859. treasury and therefore offeS no ad^H^r "^ 'f^^''''^^ "P<"^ the stat« provision except that pSTnld bv ^" ? ''"'°' ^''•" ^'^"'^^ institution (C'aiarfirll^!wir-^ *^ existence of an insurance went into eLltt7^oitT^"!^7""^ «»wcaiai«).(a) The lawnever A proposition tolvTrtj^^rd f '"*' °f*^^ '"'"''^'^Sd^-d- Deputies on February? 1877 K , '^.r*' "*^« '" tJi^ Chamber of Agitation for thTifab SLt^TtlTitr -^'l age pensions, organized bv Uhn. 'n^t'tution to provide old- the appointment' on"J,;^b f n Tfr^'T:!" ^^'*'^"*' ''" ^ mmister of interior and the minislr nf ^ ''°™miss,onO by the commerce for the study of tL pSm andTh *"'' ''"^'''''^' ''"^ and regulations for an old-Se anH n t^i Preparation of a bill The commission brought in Trenn/w^*^ P"°''^'^ institution.(«) was proposed the estflw^of 1^0,]^' ^^'^ '' ^ ''"' '" ^^^^ for the exclusive insurance of ll ^'^'^gc «i«"rance institution 600 lire (,115.80) to Lsural S^ "'he '' "'^P""'' ^ "'"'^ ^' tution were to consist mainlv o7?l!» revenues of the insti- ondly, of voluntary contrfiion or T"""'^ "^ '^' ''"'^'^ re- state subsidies. «°°t"^"twn or legacies, and finally of certain NaTlTnaTBllXraLtdtt^^r Tk*^ "^ ^^^^^^^ *<> «>« to act as agencies. TlecosJ otoZ' '?-^ '^' '"^'^^ POsWflices were to be advaLd by thrStat llral: .'rrelldl"'"^^*^^^ -- ^=zi tstituirri S^^-^^^^ ^; Att. Parta^entari, LegisUtu. XIII. Se^ione Isr6-77, Camera dei Dep.tati ^ Zacher, VI. 189Q n 9q a *..• t> , ' 1882-83, earner; dei i>!,2ti, "^^t' rs?'"""^"'^' ^^"'^ ^V, Pri^ Se«ione. 67726°— VOL 2—11 2i 1864 BEPOET OF THE COMMISSIONER OF LABOB. I by federations of such mutual benefit societies by offering them free of any expense the cooperation of the local post-office for the receipt of contributions and payment of pensions. Based upon these recommendations of the commission, a bill(«) was introduced by the minister of agriculture, industry, and com- merce in the Chamber of Deputies on November 30, 1881, for the establishment of a national institution for workmen's pensions. The essential features of this proposal were, first, its special designation for the use of wage-earners, and, secondly, the proposal to turn over to this institution as a state subsidy to the insured 20 per cent of the net profits of all the savings banks, private as well as postal. This provision of the bill caused considerable criticism and opposition from the savings banks, which claimed that such a tax would be an infringement of their rights and would endanger their own obligations. On the other hand, the formation of an old-age pension institution without some material state subsidy offered very Httle hope for success in view of the very low standard of earnings of the Italian workmen; and the state treasury was not in a condition to furnish a direct subsidy without additional taxation. The bill of 1881 never came up for discussion in the Chamber of Deputies. It was reintroduced with some modifications on February 19, 1883. e) ^ According to this bill, the old-age pension institution, though an independent organization, was to be administered by the National Bank of Deposits and Loans. All workers of either sex over 18 years of age could take insurance for old-age pensions in this institution. The monthly contributions were to be not less than 1 lira (19 cents) nor more than 4 lire (77 cents), and an entrance fee of from 5 to 50 lire (97 cents to $9.65) was to be required. In addition to the con- tributions of the insured, several other sources of revenue were pro- vided; namely, two-tenths of the net profits of the postal savings banks, but not of the other savings banks (0 and a few minor sources of revenue. Pensions were to be payable at any time after the insured had reached 50 years of age, provided he had been paying his premiums for fifteen years. In case of invahdity bi^fore reaching this age limit, special pensions could be granted by the committee. « Zacher, VI, p. 29. Atti Parlamentari, Legislatura XIV, Prima Sessiono. Camera del Deputati, No. 263. & Atti Parlamentari, Legislatura XV, Prima Seesione, 1882-83, Camera dei Depu- tati, No. 75. ^ c According to the law of May 27, 1875, establishing the postal savings banks, seven- tenths of the net profits of the savings banks are distributed to the depositonj, and the remaimng three-tenths must be distributed as premiums to provident institutions The assignment of two-tenths to the national pension institution was therefore Claimed as a fulfillment of their legal obligations. CHAPXEE VII.-WOHKMEK 's msUKANCK IK IXAI.V. 1865 ance with rese Jd cap 7an^^^^^^^^ in this report insu.. difference bemg that under ~ I '''' ''P'*^'' '^^ «^«'»«»» were payable^ the helt faTeo ZZ7ef ^^^t, —"1"^-- granted, whUe in mutual insuranll. t ? ^^^ P^°^'«n ^as forfeited. The two dintlTTZ. t '^''^™"l''ti«'»« ^ere to be separately, and the accuStiSns o/pror^T' ""^ "^ ^« "^^P' urally would be higher. ^ " "'^ "^"^^^i ''l^ss nat- In the mutual class the erantin«r nf tu^ „ • 8017 at the age of 65. But LeSr form 1"^'"° ^^ *« ^^ --pul- granting the pension it couhJ h?. ^^''^'^^^ insurance, at the time of wishes of the Lured,^o a" to reserTeTe r" '"'"'''''''' "'*•» '''^ mulations or part of ihZ ^°*""^ '''°«"nt "^ the accu- hisheir.,orXoufanyr"seZroKTH°' "" T""^' *« ^« P"d" accompanied the bill ^ "" ^**^*° mortality statistics ^r^X^Z'ztT£;ti:i^ir'''''^^' '^^ bm it. author the working classes, and therefore coS Z If "'"^ T'""^^''^ ^- the savings of small nronripf^rl °°t become a depository for France and Belgfum P'^^"'*'''^' *« ^*« claimed to t>e the c^ in J: Sut: tSsfr^Ind t *'7".**''^ ^' *^« '>^ thought a this duty upon loci sl^nU'^tnt'or :^ f ', T^^^^ ^ V^ose utterly unsatisfactory """^"^^ •'^^^^t societies aa anJe'lni^rau^r^rr^f XUo^ "Tf °^ ^"'"-^-^ -- ' ThrbT'^"'''-^^^ Pentn%rrariugalr^^ ^"^ ^^*'''^^^- up^o: ficx^irt^ the new minister of LricuUur? in^' 7 ^T"^ '^^'■' ^° Ju°e. 1885 bill which in many of h , , ' '."^"^t'^' ^"d commerce introduced a ;hous bills, ^nTTtC\zr:::7:^^Tfist'''^ 't *^"^- decree. («) ^^ ^"^ ^^ ^^^^ was recalled by royal the'to^"pr:tirS."tr^^^^^ -''^l^ -~ as did Belgian experience was conidere 1 f ""m "" '^' ^'"""^'^ '»'>'• the :ssiam 1866 REPORT OF THE COMMISSIONER OF LABOR. earmarks of state socialism and excessive centralization. Equally good results were claimed to be possible through private institutions, singly or in federations, but under government supervision and con- trol, and the National Accident Insurance Institution established in 1883 was quoted as an example. The bill provided therefore that each savings bank could be authorized to write old-age pension insurance by depositing a guarantee fund of 50,000 Ure ($9,650). Several savings banks could unite in forming an old-age fund. To each old-age insurance institution thus organized a definite geographic district was to be assigned. Insurance was allowed to all workers over the age of 15. Only insurance with reserved capital was to be permitted; that is, the premiums and interest being returnable in case of death. The pensions were to begin at the age of 50, though they could be postponed. When a pension was granted, it might be given with or without the reservation of the rights of the insured to his original accumulations, and even lump-sum payments might be substituted for pensions. The state subsidies to the insured remained nearly the same as in the previous bills, but they were divided into two groups, the annual subsidy and an eventual subsidy, the payment of the latter being delayed until the fund reached a certain amount. The main bond between the many old-age pension insurance institutions was to be formed by the distribution of these subsidies among them in direct proportion to the number of insured. These were to be further distributed in equal amounts among all insured persons who had paid in not less than 6 lire ($1.16) during the current year. The cooperation of the postal savings banks for collection of premiums was another form of state assistance. This bill did not have any better success than its predecessors. The Parliament dissolved before it came up for discussion. The fourth bill in this series of unsuccessful efforts was introduced in the Lower Chamber on December 9, 1887. (**) In this bill the tendency away from a direct state insurance toward a system of state subsidy and supervision of private local pension insuring institutions was even more pronounced than in the preceding bill. The bill of 1887 provided for the establishment of a special fund in connection with the Bank of Deposits and Loans. This fund was to be utilized for distribution of subsidies to institutions for insurance of workers against old age, and the selection of the institutions and the assign- ment of subsidies to each were to be left to ministerial decrees, with the provision that the distribution must be in proj)ortion to the number of insured persons over 15 years of age who had paid in during the year not less than five lire (97 cents), and the subsidy should not exceed twenty lire ($3.86). In return for tliis subsidy the « Atti Parlamentari, Legislatura XVI, Camera dei Deputati, No. 74, CHAPTEB VII.-WOBKMEN's INSUBAHCE m ITAI^Y. 1867 in compUance wit™ ^7 ^ *^ *^' regulations to be promulgated in a favorable JS on Juty^'^^^^^^^ -^-»^ brought session of the Parliament in Deceit o^^^^^^^^^^^ ibe bill was remtroduced on December 11 isso .^ • a commission, which brought in its report on July'l iZ atr^- ^ the bill with some modification «> ■ K„t u "" " •'^ i ' ^^"' aPProving The fate of the eaSMMndiid a C^%''\^''^^'' Progress. of voluntaiy old-age iLrance Non« n 1 **K-n *"■''* '° *^" '^''^'^ the eighties had even Seved th. ^ ! / ^^^^ introduced within of the Chamber Thk 1^11^ T*^ "^ a discussion on the floor before the next e.I^^nZl ZlZ^':''^:'^Z^ ^ ^'TS rtr£^tL^t™yfS;nand^^^^^^ Industry." National. Institution for Invalids of to S fSuls i^rifzTsi? t: ''- ? r --^ ^^"- of a national old-age insurlce i^ Lt nTtS t^ ^ ^^^^ local and privately organized funds. Tlugriegal t Tu^"^^^^^^ - was to be regulated by statutes prepared bfthlS.r'*""' ** ture, industry, and commerce flnHT^ I u """^^t^r of agricul- aU the previous bills itTrn T ^PP'"."^^^ ^y ™y^ decree. Like of waglwrke J^ and a vo^Z *" '"^l"'^'^^ ^o^ the special benefit subsidies. From the list I? tw"^ T '"^ ?^ ^^""^^^ ^^'^ «***« income of the Po::'f:tcz^t£t:t: :S^''Xe''"' ^! insuraoice (with reserS canS ^ T^ ^""'^ ^'l" individual form of capital in L ofZl^a^lt:^^^:^^'^^^^ f^^^ =re^Tii^^ofLriiir^f'^^ before the expSon ofsu t Lmf TT "'''''\''' ^'"^'^^^^ depended upon the individu^Mp^ir:, *"" *'*^'^ *^'« pensions benefits coiSerredXtThlStA^^rSi^^^^^ ^S??^ -Italian text: Atti Parlamentari, Legislatura XVITT Pri™ o ~ Deputati, No. 245. BoUettino di Notiz^suT^HT/ 'if^* ^^"'°*' <^*"'«'» ^ei French text: Bulletin du ComitrPermrent H^ .^ I?"'' Previdenza, 1893, Vol. II. text: Bodiker,ArbeiterveS™~95 '^ *^*'°'^'''°'^^ ««^ sum 1868 KEPORT OF THE COMMISSIONER OF LABOR. bution, the subsidy not to exceed 60 lire ($11.58) per annum to each person insured. Various minor privileges were also conferred upon the institution. In the main, however, the technical rej^ulations, the tables and computations were to be left to be elaborated by the minister of agriculture, industry, and commerce. The bill never came up for discussion in the Chamber. ''A Bill for the Establishment of a National Institution for the Insurance of Wage- workers against Invahdity and Old Age" was introduced on April 13, 1897, passed on July 14, 1898, and approved by the Crown on July 17, 1898. Thus the estabhshment of the national institution for invahdity and old-age insurance followed very rapidly the adoption of the law for compulsory insurance against industrial accidents. LEGISLATION. The following is a list of the important laws, decrees, and similar enactments which have been promulgated concerning the National Institution for Insurance of Wage-workers against Invahdity and Old Age since its organization. (1) The organic law estabhshing the institution was passed on July 17, 1898, (*) to go into effect one month after the approval of its constitution. (25* The constitution of the institution was approved by royal decree on June 18, 1899. (^) (3) The technical regulations of the institution were approved by royal decree on June 18, 1899. (*) (4) Regulations for all branch offices of the institution wore pro- mulgated by the royal decree of July 29, 1900.(0 * (5) The provisional tables for computations of earned pensions were approved by royal decree of February 3, 1901. (<^) (6) Law of July 7, 1901, amending that of July 17, 1898.(<^) (7) Codified text of the law, consolidating the act of .Fuly 17, 1898, and the amending act of July 7, 1901, published by royal decree of July 28, 1901.(0 a Italian text: Bollettino di Notizie buI Credito e suUa Prevideiiza, XIX, 1901. German text: Zacher, VI. French text: Annuaire de la Legislation du Travail; 2d Annuaire, 1898. b Italian text: Annali del Credito e della Pre\ idenza, 1899. Atti del Consiglio della Previdenza, Prima Sessions. French text: Annuaire de la Legislation du Travail, 1899. c Bollettino di Notizie sul Credito e sulla Previdenza, XIX, 1901. d Italian text: Bollettino di Notizie sul Credito e sulla Previdenza, XIX, 1901. French text: Annuaire de la Legislation du Travail, 1901. « Italian text: Bollettino di Notizie sul Credito e sulla Previdenza, XIX, 1901. German text: Zacher, Via. French text: Annuaire de la Legislation du Travail, 1901. CHAPTEB VII.-W0BKMEN'S msITRANCE IK ITALY. 1869 (8) Royal decree of Decemhpr 90 loni .i • . insUtu^on to write insu^r LT Uf^ anniuS* ^"^"^ ''' "''*-^' decl^flray 2tmr "' '^' -*'*"*-,0 approved by ro,a, banks. C) abandoned accounts with the postal savings Juri^Toile)''"'^' ''■ ''''' ^'"-'^-g '^^ law (codified text) of an? gentaTLtdililn,;^^^^ "^''''^'^ '""^ P^-- tariffs a. p Emitted b, t^^Z^ ^tlT^l-^'-:: 1,t Tef f^^ -No. 8 m tins list.)(/) • ' ^"^- (^®® above reSif^i'""^ of September 2, 1904, amending the technical .^(15)^ Royal decree of September 2, 1904, amending the constitu- tion (16) Royal decree of November 1« looft i- June 26, 1904 concerninlfll • '• ^^^^^^g the decree of diu.s of the 'frpj^i:^::::^ ^'^ -- - law S J^uJTst mT^Z'tlT' tT^r '''' ^'^'^^ ^-t o' the 30,^ ig^OrT * ''^ ''^ '^^' ^''P^''^^^ "^y -^^i dec.ee of May French text: Annuaire de la LilZnt Sn \Z^^ ^™^''^''^^' '^^^ '^- " Italian text: Bollettino de Notizie ri.I CrSf ,.' French text: Annuaire de la L^ConIUliantext: BrSi^o d^NtTzitt^^rdii'^^'n'^'L' ' '^^• Prenc^ ,ex,: Annuaire de la lSLI^L'^iC '^""'^"^'^ ^^^' ''''■ 1870 REPORT OF THE COMMISSIONER OF LABOR. (20) Constitution of the institution, approved by royal decree of March 18, 1909. («) (21) Technical regulations, approved by royal decree of March 18, 1909. (^) Not all of this legislation is m force at present. The new codified texts of the law have successively been substituted for the older texts, and with the approval of the new statutes and regulations the preceding ones were repealed. In the following pages only the leg- islative acts now in force will be studied in detail. But it is necessary to precede such detailed analysis by a brief review of the changes in legislation affecting the National Institution for Insurance of Wage- workers agamst Invahdity and Old Age, because only through such study of the changes can the tendencies in the growth and develop- ment of old-age msurance in Italy be understood. Brieily, the his- tory of the legislation concerning this mstitution is: The first law was approved on July 17, 1898, and the actual operations of the fund began in October, 1899. The fn-st amending act was approved on July 7, 1901, and the codified text of the law was promulgated by royal decree July 28, 1901, and went into effect on August 1, 1901. The second general amending act was approved on December 30, 1906, and the codified text was promulgated by the royal decree of May 30, 1907. Some of the important changes of this law did not go into effect until March 18, 1909, when the new constitution and the technical regulations of the institution were approved. Law of 1898.— The National Institution for Insurance of Work- men agamst Invahdity and Old Age as established by the law of July 17, 1898, is an institution for voluntary insurance open to all wage-workers who are citizens of Italy. The amount of contribu- tions is left entu-ely to the free will of the msured, except that a maximuni limit of 100 hre ($19.30) per annum is estabhshed, and contributions smaller than 50 centesimi (10 cents) are not received. These contributions are credited to each insured person's individual account, but, besides, additions are made to the individual accounts of all persons paying in at least 6 lire ($1.16) durmg the year. These additions are obtained partly from the interest on the endow- ment funds and partly from the annual revenues allotted to the institution. The endowment fund of 10,000,000 lu-e ($1,930,000) has been formed from two sources, contributing equal shares of 5,000,000 lu-e ($965,000) each— the net profits of the postal savings banks and the fund of invahdated bank notes not presented for cancellation. aStatutoin esecuzione della legge (testo unico), 30 maggio 1907. I'ublished by Cassa Nazionale di Previdenza per la Invalidity e per la Vecchiaia d^li Operai. b Regolamento lectrico, etc., published by the Cassa, etc. CHAPTEB VII.— WORKMEN 'S INSURANCE IN ITALY. 1871 In addition numerous other revenues were diverted to the treasury of the newly-created mstitution, to be used partly as annual reyZZ and partly to swell the endowment fund.^ Even from lelZZ revenues a portion must be diverted to the endowment fund for the nrst 10 years so as to brmg it up to 16,000,000 lire ($3,088,000) adSL'«lT ir'"'' '^ '^'^' P^"" ^^ '^''' "^ ^^^fi-t- --^ount of additional benefits is guaranteed to the insured persons They appear to be somewhat accidental, depending upon the revenu^ TuX of^n "''•'"'""; ^"' '^^^ invex^el/proportionate to S Sted OnHf '"'"'^' among whom the amount must be dis- tributed. Only the maximum limit, 12 lire ($2.32) per annum to each person, is established. ^ annum to The list of revenues diverted to this institution is very mterestin^ of trust funds are thus transferred, as follows («) yJu.\Tfi ^r\'^ "'"'"''''^ ^^' ($965,000) wa. taken from the ^4 «n I T^ r'"' ^'"'^ ^^ accordance with a law of Apri 1874, and canceled because of failure to present them for redemnS m accordance with the law of April 7, 1881, which disconS S compulsory circulation of these bank notes and established certS time hmits for their redemption m specie or treasury notes The amount of bank notes not presented for redemption Ldthere^^^^^^^ canceled by October 1, 1894, was 13,343,796 lire ($2 575^^1T T^^^ institution, therefore, amounted to less than one-half of the net^a^ of the Government from this operation. ^ The second fund of 5,000,000 lire ($965,000) was taken from thp avadable net profits of the postal savings banks/whSi C e e or^^^^^^^^^ incr"^^^^^^^ ~" "' ^^"^^"^ "-^ --^ed for the mcrease of the 10,000,000 hre ($1,930,000) endowment fund-(^) 10 1893 ThTorf ^ '^'" ^T^^ "^ ^^^"^ ^^' P^-^^ on August 31 89?* and if T ^^^^^f ^^ ^"^ ^^ circulation on December ;^^icJaame d for 30 years were invalidate d according to the law of 1872 REPORT OF THE COMMISSIONER OF LABOR. May 17, 1863. These invalidated deposits are now transferred to the old-age insurance institution. (4) By the law of July 7, 1866, dissolving the reUgious orders, then- property was used to form the so-called reUgious fund. From the proceeds of this fund expenditures for pensions are made to members of these orders and for other reUgious purposes. Of the excess of the proceeds over expenditures, one-fourth is paid to the local communities where the property is located, and three-fourths revert to the State. Of this share, one-tenth was granted to the old- age insurance institutions. (5) AU other private grants, bequests, etc. The foUowing sources were designated as regular annual revenues: (1) A portion of the net profits of the i)ostal savings banks— for 1897 and 1898, 30 per cent, and from January 1, 1899, 50 per cent, and in addition to this when the total deposits exceed 500,000,000 lire ($96,500,000), 70 per cent of the net revenues attributable to that excess. (2) Fifty per cent of the net income from the deposits of court fees and similar court moneys deposited according to the law of June 29, 1882, in the Bank of Deposits and Loans (for 1897 and 1898 only 25 per cent). (3) Legacies reverting to the State. (4) The interest upon the endowment fund; and (5) all other revenues. These various sources of annual revc^nue and the interest on the endowment fund are expected to provide means for substantial increments to the personal accounts of the members. These accounts, carefully computed according to the detailed provisions contained in the law, form the basis for payment of pensions. Normally the accounts were to be Uquidated— that is, transformed into annuities when the member reached 60 or 65 years of age, and after at least 25 years have elapsed since the first payment. This rule would not permit the insurance of persons over 40 years of age, and for the first two years insurance for a shorter period (20, 15, or 10 years) was permitted. This was subseciuently extended by the law of July 7, 1901, to December 31, 1903, and by the law of March 13, 1904, to December 31, 1905. The conversion of the accumulated account into an annuity was to take place according to the ordinary insurance principles, and according to a special table based upon ItaUan mortality statistics. Under certain conditions payment of the entire value or part of the value of the accumulated account was payable in a lump sum instead of as an annuity. Also the annuity could be purchased with reserved capital or aUenated capital. Two forms of insurance are allowed, the plan of reserved payments and the mutual plan; the essential difference between these two CHAPTER VII._W0RKMEN'S INSURANCE IN ITALY. 1873 plans being that in the former, in case of dp«tli h.f annuity is acquired, the accumXerpa» ^ '^ of the deceased, while in th^ i^.,^^^ / ,^^^ P«^^ *« the heu^ plan. As a matter of faot fh^ a;4v - according to the same appear, for t^LuJ:^^' Z''^^:^ZZ:~^ element of mutuaUtv in it Onl J ^^ . ^^^ °*^ ^""^ '''«° the- member are returned to ,'• i-t^Uaul^^^^ "' '""^ accounts are redistributed Im'g the olfmlb r T.?"' '" *'" of annuity nurrhfl-sahlA f«. „ *^ j members. The amount the mutuS plan but Lnl T"^ '''"°"°' '^ "'"^'^ ^'^'''^^ "«der more forcii^To ^l^ZCZZZl '^,Tr^ "^^^P''^^' accumulations in case of his ptmatrdelr ''^ '^""'^ '" '"^^ ^^ each';CrI;: — fol,r^^^^^^ P- -- -der X.0„.. o. ^^^^^^^ .OK «^P.K^™ ....„ .„. ...... Age at beginning of insurance. Annuity to begin at the age of- 60 years. 65 years. Mutual plan. 25 years... 30 years... 35 years... *0 years... Reserved plan. til. 40 8.36 5.95 4.07 »7.87 5.99 4.45 3.18 Mutual plan. S21.08 15.66 11.37 8.02 Reserved plan. 112.37 9.50 7.30 5.-42 on? oTd'^ig Itatr tSr *'^ system estabhshed wa. primarily nificant. if irrrmTtted tn^'"'''''?"' ^"' '"^""^^^ ^^^ ^^l accumulated Iccounts in li T T.*"''"'*^ "'' '^' ^asis of have elapseLLTthe be^innW 1 •'°^'''^'^' P™^**^'^ ^^^ y«a« invalids'^'fund wTs ttablZdY; S^ ad^fti:'';""'^ ^ ^''"^^ annuu, to invalids, but the sourcesT^S rntrs"td~e^ inircrinrchrnrwi~rr, *T'r '-^ ^^ '^'y '■ '^^' did not affect Sfe geneS ;Splt:ft,re^Tr^^^^^^ outlined above Th« .1. ^""''.'Pf ^ f *"« old-age insurance system Buruaiy ii, 1899, these notes were ordered taWon „„* t ■ lation on December ■? 1 Toni ti " "™^'^f ^ ^^^her minunum of pavments ot ^^l'^^^ '^'''"^ ^^ ' ^'^ (^1-1^^^ ^-« required. ^^^^^^^^ (9) The reqmrement of 25 years of insurance was left in normal cases; but payment of annuities before the expiratil of tLTi was permitted on condition of higher rninL^Tr^^^^ the required age was reached. ' P"^"^*"®*! (10) The financial organization was somewhat changed A m^m bers' fund was added to the existing four funds, the enlowmentS" annuity fund, invalidity fund, and reserve fund- «nrtTI^ f* ' L 1 I. / ^^ ^^r® ^^^^ ^^ the discretion of the administrfltWo councU but must not be less than 30 per cent, to be usi SX^arv proportions to mcrease the endowment fund the invaU^Cd an^ the extraordinary reserve fund. ' r J^^^ ^^^ maximum amount of the annual oidinarv benefits wa. reduced from 12 to 10 lire ($2.32 to $1.93) a Jv'wTl"^ '"* "^ December 30, 1906, went into effect immedi- ately, with the exceptions indicated below, and the codified™ xt of the law was published by royal decree of May 30, 1907 Excepted were (1) the provisions as to changes in'fh. .a ■ ■ trative council anH r9^ i\L u • , '''^'^'^g®^ ^ the admims- . ,:.. '^ouncu and (2) the changes m the methods of keening fh« individual accounts and computing the value of ann .S^k i were made dependent upon the promulga'on of I ZcZtH^t and regulations for the old-age insurance institution The'dmiSr ber, 1907 adopted the texts of both the constitution and the re^uk tions, and they were approved by royal decree of MaXs iSI ANALYSIS OF LEGISLATION IN FORCE. The institution is officiallv known a.« "Tl.» \r„t;„ it .-. .. . the Insurance of Worker. s^ZTlZJZ'':T£JtT7''' 1878 REPORT OF THE COMMISSIONER OF LABOR. labor for time wages or piece wages, or on their own account provided they do not pay more than 30 hre ($5.79) per annum in taxes of any nature. Married women may be insured without the permission of the husband and minor persons without the permission of parent or guardian. The institution may carry on an old-age insurance business among other classes of the population (so-called popular annuity insurance), but under special conditions, which will be explained presently. When a regularly insured person ceases to satisfy the above-men- tioned requirements, he is transferred to the popular insurance branch. Forms of Insurance.— At the time of taking out the insurance the- insured person must select one of the two recognized forms of insur- ance; the mutual form or the form of reserved contributions. In the first form, the payments of the insured are not returned; under the second form the actual value of the contributions made by the insured or by other persons for him are returned to his dependent relatives according to the following rules : The surviving consort receives the whole amount when neither children nor relatives in an ascending line survive. When children survive, the consort receives 40 per cent and the children 60 per cent; when no children, but relatives in an ascending Hne survive, the con- sort receives 60 per cent and the latter 40 per cent. When no consort survives the children receive the entire amount in equal portions; and in the absence of either a consort or children, the entire amount reverts to the relatives in an ascending line. Finally, when no consort, child, or ascending relative survives, tlie amount goes to the other descendants and brothers and sisters under 18 years of age, or disabled because of some physical or mental defect and who were supported by the insured while living. The time for making application is limited to two years, and if no legal heirs under the above rules are disclosed within that time the amount subject to repayment is turned over to the invalidity fund. Contributions of Insured. — No regular premiums are exacted, the amount of contribution being left entirely to the 0})tion of the insured, except that contributions smaller than 1 lira (19 cents) are not accepted, nor are contributions including fractions of a Hra accepted. This minimum limit of a single contribution is quite high, and may be claimed to be too high to stimulate the habit of small savings. To meet this difficulty the regulations provide for a method of making smaller savings by means of postage stamps. For that purpose special stamp cards are provided which are distributed with- out cost by the branches of the institution and through post-offices. These cards are ruled into squares, where ordinary postage stamps may be pasted until a full card represents a saving of 1 lira (19 cents), and may be handed in instead of cash. The accounts are sub- CHAPTEK VII.-WOEKMEN'S msUBANCE m IXALV 1879 9 lire ($1.74) for those In th/f f '"''' ^""^ ^' ^«^ ^'°'"«'». -^d ' expires at the age of SSyeait «-"Pations whose insurance It is sufficient, however if ihc. „^^ aU the elapsed yeZZtML^h- '^^ *'°°"°* "^ contributions for tions for the 1 J~o not '^"""^'"-'^i' «-«« if the contribu- ip)tuTrd\ru:;rsr;;'T- '--''' ^- ^^^^^^ between 25 years and th^ nuttr "fTea^ oTt^ '''"'' *'^ ^^'^^''''^ . Accounts op Members -The conS. '°'"''*°'^ P«"«d. individual accounts of the insured 1 .5°°' *"" "''''*^^ *" ^^e the new law, which have X i^to ^^7 T *° *''" ^'"^^''^ «' accounts are to be ve:y inch sTmnler h! ^^ "'1 ''"''''^y' '^^^ were six classes of entrieffor th.^ ^ \f heretofore, when there those insured with rep^meS of te^ -^"^ ^^'^ ^^« ^"^^ri^^ for each payment made is TnTeredle vl^f 2 ""' "' '^^*^- "^^^^ the normal annuity age purchlaWrf t f°°"'*^'' ^ ^^^ ^'th same rule applies to alJ benefit oTvtl "' 1 *u "''" P*^'"^"*- The individual accounts. P^J^ents which are granted t9 these Of course, the annuity equivalent nf .o i. computed independently eSlSr tIT ^^^"^^^ """^ °°* ^e such computation, and thie tTbL T U ' """"^ ^^ P^-^^^^d for probabihty of life ^t the t mTof il- "''", ,r*" ^^'^^^''^'-ation the at the time of payment, ^Ihl T.^tStluelf T'''"' '^"^ '""^ ^- time of maturity of the nension ^^)T T " P^^^ent at the interest is accruing uponT " ''""^ "P"'^ *^« ^^^g^h of time of insured. Different tables are 'nlc Jat T f *'! ^^""^ ''In- forms of insurance necessaiy, therefore, for the two (wSrermuruSTwrtL'e^eTc'T??^ ^'^ ^""^ °^ -™ at the time of taldng outXinlran " T^ "^"'* *»" determined make a change from one form to X M ' "J'^'}"'''' '^^y arise which such conditions the new regltLn/n * '; ''T**''^- '^'^ P^^^^^e for to the reserved-payments Sn to th^«T ^ *°^' ^"'" *^« °»"*"«'l within one year'aL ma:? a^e or ^rt'e^ ^^^^^^ f ^'e- of age recomputation of the existing crTdifs To t? ^'^ " '^'^' "^'^ amount of payments made bv f bf • . accounts, so that the becomes avaiJble to Ct^^ ^^l^TTLn'' ^''^ '''"^'^ 67725'>-voi, 2-11 25 ' ^"^^^e^' the 1880 EEPORT OF THE COMMISSIONER OF LABOR. insured does not complj- with these requirements, the cliange has no reserS^^ ^"^ *"^^ ^^^ payments subsequently made arc On the Other hand, the change from the reserved plan to the mutual plan .is permitted unconditionally and the annuity value of tne old payments is recomputed. Additional BENEFrrs.-In order to stimulate the saving habit and also to mcrease the value of the pension, the old-age insurance insti- tution contributes certain additions to the personal accounts. All persons msured according to the law are entitled to receive certain additions provided they have compUed with the requirements con- cerning the minimum annual payments, as explained on page 1879 and on the other hand have not accumulated an annuity of over 1 000 r, =ni^f Pf *™"°'- ^° addition, the old qualification of the'law ol 1898 has been perserved, that such insured workmen, for whom some special old-age and invahdity provision has been made either by the btate, provincial government, communities, or any other public or pnvate employers, are not entitled to any benefits. The amount of the ordmary benefit payable depends upon the resources available and IS determined by the council, but must not exceed 10 lire ($1 93) per annum for each insured person. In a.ldition special benefits ' are given to those msured for less than twenty-five years and for those in collective insurance. From the current revenues at least 30 per cent must be deducted by the administrative council for distribution, according to the judgment of the councU, among the endowment fund, the special reserve fund, and the invalidity f un• vyiui,u me pay- of 55 v»«,! tV J t , ' t'*' *^^ pensions maturing at the aee of 55 years, the difference for payment of $1 made at the age of^2 at he:7c;f 4V2\:^:s"'aft'h'' ''-r' ** *'^ ^^^ «^ 3o:3Tcit age of 54 1 of ,Ti; T *^' °^ ^^' ^'^ ''^ ^ *'*"»*; ""^d «* the amounts t;rbouf,i Tk "" P^'^^'^'^ges, however, the difference to decrlse In n J °' ^7 T' T'^ '^^ ''^^ °^ ^5, and then begins great:raT the'rrt™ ' ^'^ ^'^''"^^^^^ "^ ^"^^ -"^^^ P'^ - H 1882 EEPOBT OP THE COMMISSIONER OF LABOB. ^^^^'^^^^^ Regolamento Tecnico della Cassa Na«onale di Previdenza.) Age at time of pur- chase (years). Amount of annual pension purchased for $1 under- Mutual plan: Maturing at age of— 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27.. 28.. 29.. 30.. 31.. 32.. 33.. 34.. 35.. 36.. 37.. 38.. 39.. 40.. 41.. 42.. 43.. 44.. 45.. 46.. 47.. 48... 49... 50... 51... 62... 53... 54... 65... 55 j'ears. 60 years. 56.... 57.... 58.... 69. . . . 60.... 61.... 62. . . . 63 64.... 65 66 67 68 69 $0,512 .493 .474 .457 .439 .423 .406 .390 .375 .360 .346 .332 .318 .305 .293 .281 .269 .258 .248 .238 .228 .219 .210 .201 .193 .185 .177 .170 .163 .156 .149 .143 .137 .131 .125 .120 .114 .109 .104 .100 .095 .090 .086 10.798 .768 .740 .712 .685 .659 .634 .609 .585 .561 .539 .517 .496 .476 .456 .438 .420 .403 .387 .371 .356 .341 .327 .314 .301 .288 .276 .266 .254 .243 .233 .223 .213 .204 .195 .187 .178 .170 .163 .155 .148 .141 .134 .128 .121 .115 .109 .103 65 years. 11.363 1.313 1.264 1.217 1.171 1.126 1.083 1.041 1.000 .960 .921 .884 .848 .813 .780 .748 .718 .689 .661 .634 .608 .583 .559 .536 .514 .493 .472 .453 .434 .415 .397 .381 .364 .348 .333 .319 .305 .291 .278 .265 .253 .241 .229 .218 .208 .197 .187 .177 .167 .157 .147 .138 .128 70 years. $2,667 2.568 2.473 2.380 2.291 2.203 2.118 2.0.35 1. 955 1.877 1.801 1.728 1.658 1.591 1.526 1.464 1.404 1.347 1.292 1.240 1.189 1.149 1.094 1.049 1.006 .964 .92* .885 .848 .812 .777 .744 .712 .682 .652 .624 .596 .570 .544 .519 .496 .471 .449 .427 .406 .385 .365 .345 .326 .306 .287 .269 .2.51 .2;« .216 .200 .184 .168 Reserved-capital plan: Maturing at ags 55 years, j 60 years, $0,440 .422 .406 .390 .374 .360 .345 .332 .319 .306 .294 .282 .271 .260 .250 .240 .231 .222 .213 .204 .196 .189 .181 .174 .1('>8 .161 . 155 .149 .143 .138 .132 .127 .123 .118 .114 .109 .105 .102 .098 .094 .091 .088 .085 $0,675 .648 .622 .597 .573 .550 .528 .506 .486 .406 .447 .429 .412 .395 .379 .363 .349 .335 .321 .308 .295 .283 .272 .261 .250 .240 .231 .221 .212 .204 .196 .188 .180 .173 .166 .160 .153 .147 .142 .136 .131 .126 .121 .117 .113 .109 .105 .101 66 years. $1. 131 1.085 1.040 .998 .956 .917 .879 .842 .807 .774 .741 .710 .681 .652 .625 .598 .573 .549 .526 .503 .482 .462 .442 .423 .405 .388 .371 ..355 .340 .325 .31-2 .298 .285 .273 .261 .250 .239 .229 .219 .210 .201 .193 .185 .177 .170 .163 .156 .150 .144 .1.38 133 128 .124 70 yean. $2,163 2.073 1.9H7 1.903 1.823 1.746 1.671 1.6U0 1.531 1.466 1.402 1.342 1.283 1.227 1.174 1.122 1.073 1.03JI .980 .937 .895 .856 .817 .780 .746 .711 .678 .647 .617 .68» .561 .636 .510 .463 .441 .420 .400 .381 .363 .346 .329 .313 .298 .284 .270 .257 .245 .233 .223 .212 .203 .194 .186 .178 .171 .164 .158 .inZH """■ O'' P*=««iONs.-NormaIly ,he computation of pen- sions IS a very simple process according to the new law, being accom- entries in the account of the individual. In exceptional cases a lump- sum payment may be substituted for the annuity accord ngtoThe provisions to be included in the new regulations."^ These "rovkiin^ I i CHAPTER VII.— WORKMEN 's INSURANCE IN ITALY. 1883 c'dT SesT: Srol.Tt'^ '"^"^r" '^ ^•^^ '"--^ -'•'^-- ex- ceeds 365 hre ($70.45), he may choose one of the three plans-f n with the msurance mstitution and receive the interest in ^MU T the annuity during life, the capital to be paid to £ heiS at lath . If the annuity acquired amounts to leL than 60 lirr«li 58 th. o': f» .ir«^ -72 .r:,* ^ir:-' '»"- '° '— StSe."^ '"""^ '""^ °^ 10,000,000 lire ($1,930,000) to be paid by the (h) Payments from persons or institutions responsible ..nHpr ih law for the support of the invalids responsible under the (c) Annual contributions from the current revenues. ^Z^CXirnr '"''''''' ^^^' "^-^^'^- °^ P^>--ts and givet ^:\z^jz^^^ "^ '""^ ^"''^ °^ '^^-^- -<^ ^^^- urJt 'P'°"°'°*^V''" (*1'»30,000) fund is to be paid from the treas to'loTo i7. '""' "'^""'^ installments from the'budgets of 190^7" reg^uLrn?trtS;™vX^^^^^^^ ^^« -- je^^ eh earnings of T^ to leS^n ^ thilSt^^bVuS JZf vrl^" '° '^^ "*"'" occupation and locality. EvicSce bvStv"" *^ ""T ^ ^™'^^«^ ^tl' '^' appliiltion for 1 "Ss L'TZ'trel't ^^'^--r"^* incIude'Ltiiicates from instit, iL J • ^ addition, the admmistration of the Son 7 r'^^' * 'P^*=^*^ '"^'I'^al examination. The rdminis tration may declme to grant the petition for an invaliditv neXn The msured may appeal from the decision of the oZtfZ a'dS" 1884 REPORT OF THE COMMISSIONER OF LABOR. trative council of the insurance institution, but the decision of the council is final. If the annuity acquired through the minimum payments and the regular benefits is less than 120 hre ($23.10) it is increased to that amount from the invahdity fund. Any annuity acquired by means of payments over and above the required mmimum is added to this 120 lire ($23.16) annuity. The following classes of insured persons are deprived of the light to receive the subsidy from the mvahdit}^ fund above mentioned: (1) Persons whose invahdity dates back of the time of commencing the insurance, (2) persons who have insured themselves at the age of over 50, (3) persons who have become invalids either through mali- cious intent, alcoholism, or through criminal misconduct, (4) those who became invahds through an industrial accident and have received, in virtue of the accident insurance law, a compensation corr(isponding to a loss" of at least 50 per cent of working capacity, and (5) persons admitted to an insane asylum at public expense. Collective Insurance. — In order to encourage workmen's mutual benefit societies to insure their members collectively the institution is permitted to grant special benefits to persons thus insured, though such insurance may also be contracted for in accord- ance with the ordinary regulations concerning benefits. The special conditions must be stated in the insurance contract. If in such insurance agreement the society contracts for immediate pensions to such of its members as have reached the minimum age for granting annuities (55 or 50 years accorduig to the sex and occupa- tion), then to each such pension the institution adds an animal bonus of 10 lire ($1.93), but if the original pensicm was less than 10 lire ($1.93) the annual bonus shall not exceed the amount of the pension. The institution may also contract to assume the management of private and pubhc establishment funds for old age and invalidity relief. The special conditions of each such contract must be deter- mined by the administrative coimcil and approved by the Government in each individual instance. In view of the evident intent of the law to stimulate thci collective insurance of workmen against old age and invahdity tlirough the instrumentality of the mutual benefit societies, the regulations con- cerning this form of insurance as contained in the Eeglamento Technico are of great importance. Such collective insurance is permitted to associations recognized under the law of April 15, 1886, and to other unincorporated associa- tions, provided a majority of their membership conforms to the requirements of the law as to persons entitled to its benefits. Only insurance in which all members of an association are embraced is recog- fl CHAPTER VII. workmen's INSURANCE IN ITALY. 1885 nized as collective, though the association may except those of its members who are not workers or who are over 50 years old. In order to acquire the right to the special benefits offered to collec- tive insurance, the associations must make the insurance compulsory for its members by an amendment to its constitution, and must make annual contributions which, per capita, will not be smaller than the normal minimum contributions required. Wlien these conditions have been comphed with the national old- age insurance institution ^\dll contribute a special benefit of 1 hra (19 cents) per annum in addition to the normal benefits to which the insured is entitled. Wlien the association provides for insurance of its older members for a briefer period, these members receive a special benefit of 2 hre (39 cents). Such members as do not possess the qualifications of workmen or petty independent producers, entitling them to the insurance under the workmen's roster, must be entered on the roster of ''popular annuity insurance." If a member is expelled from the mutual benefit association he loses his right to receive the special benefit for col- lective insurance, beginning with the year of his expulsion. While ordinarily insurance is not written for a period briefer than 10 years, i. e., is not written for men over 50 years and women over 45 years of age, yet the occasion may arise that an association wliich has been conductmg old-age insurance among its benefit features would desire to take out collective insurance with the national institution, and the presence of members over the maximum age might prove very embarrassing. The regulations provide, therefore, that under such condition, males over 50 years of age and females over 45 may be insured for a period less than 10 years, but so that the annuity does not mature before the age of 55 for the females and the males*^in the excepted trades and not before the age of 60 for all other male workers. For those members who have already reached these age limits annmties may be purchased by the association, and in such cases the national institution grants an annual bonus to each annuity, the total annuity to be not less than 60 lire ($11.58). If such associations are paying annuities at the time of taking out collective insurance they may transfer such obligations to the national institution, and the capital cost of such annuities is determined on the basis of either the tariff for workmen's insurance or the tariff for popular insurance according to whether the pensioner is a workman or not. All these benefits conferred by the new regulations upon col- lective insurance are extended to all mutual associations insured at the time these regulations go into effect. The mutual benefit associations which have insured their member- ship may be authorized to perform for then- members the simple f 1886 BEPORT OF THE COMMISSIONER OF LABOR. financial operations of a branch office. Payment for such services must be Hmited to a per capita fee for all members in good standing for whom the minimum payments were made, and this per capita fee must be imiform for all associations. The same conditions of collective insurame may be extended by the institution to employees of industrial undertakings or pubhc enter- prises. Other Forms of Insurance.— Compensation from private employers or accident insurance companies, due to workmen disabled through industrial accidents or to workmen who became invalids because of old age or disease, may be deposited with this old-age insurance institution for conversion into an annuity. Other forms of insurance business may be permitted to the old-age insurance institution by royal decree, but the net proiit-s of such transactions must go to increase the normal annual revenues of the business. Among these regular branches of insurance is tlie so-called ''popular annuity insurance," open to all persons without the limitations estabhshed for the main line of insurance carried by the institution. Under this form of insurance none of the special bonuses or benefits previously described are granted. Whenever a person insured under the workmen's insurance plan loses the qualifications entitling him to such insurance (e. g., ceases to be employed and becomes an employer) the special bonuses and benefits to him are discontmued and the entire amount credited to him is transferred to a new account under the ''popular insurance" plan. On the other hand, if a person insured under the ''popular insurance" plan acquires the qualifications neces- sary to entitle him to insurance under the "workmen's insurance" plan, his account is so transferred and he acquires the right to the special bonuses and benefits, and the time of his insurance under the other plan is taken into consideration for the purposes of the Hquida- tion of the annuity. Financial Organization.— The following special funds are pro- vided in the financial organization in order to preserve the financial soundness of the institution: (a) The endow ment fund as described above; (b) the fund of the insured, consisting of the payments made by the insured persons or for them and benefits paid to their accounts; (c) the annuity fund, from which mature annuity accounts are paid! At the time of granting each annuity a corresponding amount is to be transferred from the fund of the insured to the annuity fund. At least each five years a technical balance of these two funds must be struck. (d) For the guarantee of these two funds a special reserve fund is created. Into this fund go any possible excesses found at the time of striking the balances of the two preceding funds, annual contribu- ) CHAPTER VII.— WOEKMEN 'S INSURANCE IN ITALY. 1887 tions from the current revenues, and other sums indicated in the regulations The purpose of this reserve is to cover all possible deficits m the fund of the insured and in the annuity fund (e) Finally the invaUds' fund, the constitution of which 'has been explamed m conjunction with invalidity insurance The payment of annual contributions from the regular revenues of the institution mto the special reserve must be discontinued when the reserve amounts to one-tenth of the sum of the amounts credited to the fund of the insured and the annuity fund If the amount of the special reserve is not sufficient to meet the deficits ansmg in these two funds, these deficits must be covered by heavier contributions from the annual revenues either within one or coundl ^^^''' "" ^'"'°'"''*''*'^ ^''^^ *^« judgment of the administrative H K?l^"°.''' "^ ^^^ institution are to be invested in Italian national- bnnl r ' . /l S^^^™'"^"* »'• guaranteed securities; raUroad bonds guaranteed by government subsidies; trusts of institutions for ,.lTl ' r'"' "-^ P'^^^'^i^J *«d communal governments and of undertakmgs for irngation and improvement woite; in urban real estate; mt^rest-bearing deposits; or loans for construction of work- ThT ^„t7"'°g« «'-.'°°rtg*ge bonds of undertakings for this purpose. The nvestments m real estate must not exceed one-fifth of all investments. riv^nT ^.^"^^^^-The cooperation of the postal-savings banks is g^ven to the old-age msurance institution without compensation This mcludes the operations for admission to membei^hip, the recent of contnbutions, and payment of annuities and other moneys i''^'^'°'''~'^''.' ?''*'''°*' ^^'^•■^^ *°d Invalidity Insur- ance Institution IS granted the same freedom from taxes as the postal and other savmgs banks, such as special insurance taxes, register fees stamp dues, and taxes on legacies bequeathed to the institution Ihe annual mcome from investments other than state or guaran- teed securities are free from the income tax an^L^J" T"^''' ^r°*'"^ ""'^^^ *^^ "workmen's insurance" plan Hre aoZ m ^"'^ " --™nce" plan, when not in excess of 1^500 lire ($289 50) are exempt from the income tax. The payments Hanc'^texr " '^^^^'^'^ °'^°''''' ^'^ ^''"'"P* f™m inheJ arf r„r''i,?''f r'^' ^^^-The annuities granted by this institution Tt^7o^^ ''^T "' '^'^""■^' ^'^^^P* ^^^ «^«««s over 400 lire ($77.20) per annum To prevent such cession, payments may be made to representatives of the member only in case of sickness cer- 1888 EEPOET OF THE COMMISSION EE OF LABOE. I I i tified to by a physician or in case of any other obstacle certified to by the local authorities. Administration.— The National Old-Age and Invalidity Insurance Institution is autonomous in the sense of having an administrative machinery entirely separated from the General Government, and no obligations, except such as are definitely specified, are assumed by the Government. While the details of the administratitm are deter- mined by the constitution, the law establishes the following demands: The main administrative body is a council appointed by royal decree, the number of members of the council being determined by the constitution. According to the law, one-thu-d of the member- ship must consist of representatives of workmen insured; there must also be representatives of savings l)anks and other corpora- tions which assist the institution and of cooperative associations whose membership is insured. In addition the council includes one representative from each of the following ministries: Agriculture, finance, posts and telegraphs; and finally, the director general of the Bank of Deposits and Loans and the director of the Bureau of Labor of the Ministry of Agriculture, Industry, and Commerce, are ex officio members of the council. This council prepares the constitution of the institution, prescribes conditions for the establishment and administration of branch offices, and also the technical regulations and the tariffs for the computa- tion of annuities; but the constitution, regulations, and tariffs must be presented for consideration to the msurance council and the coun- cil of state, to the ministers of agriculture, of finance, and of posts and telegraphs, and must be approved by royal decree. The same conditions regulate the amendments of these acts. The institution is under the supervision of the Ministry of Agricul- ture, Industry, and Commerce, to which all financial reports and balance sheets must be forwarded. The technical balances, which must be prepared every 5 years beginning with January 1, 1908, must also be presented to the Ministry of Finance. The details of administration are further regulated by the consti- tution, which was published by royal decree of May 24, 1902, and amended on September 2, 1904, to conform to the changes intro- duced by the law of March 13, 1904. The text of the new constitu- tion, proposed by the council on December 21, 1907, was adopted without any material changes on March 18, 1909. According to the constitution, the administrative council governing the institution consists of 23 members— 18 appointed by the Crown, 3 ministerial representatives, and 2 ex officio members. Among the 18 members appointed by the Crown there must be 6 representatives of the insured workmen, 2 from savings banks, and 2 from benefit or cooperative societies insuring their membership. The period of serv- CHAPTER VII.— workmen's INSURANCE IN ITALY. 1889 ice is 3 years, with right of reelection, one-third of the member- convenes at least once m 3 months. As is customary, the councU directs the general policies, issues regulations, app^r^ves 3s appoints the clencal force, etc., whHe the executiv; work is TerformS under the direction of an executive committee elected b Ahe eounS tTe cZcr' '"' '""'^"'^ vice-president, and five rnel^C^t Service on the councH is gratuitous except that traveling expenses and a fee of 20 lire ($3 86) per day is paid to member. res£g7uS of Rome, and a fee of 10 lire ($1.93) for each.session is given to the labor representatives living in Rome Branch OFFicEs.-The duties of branch offices may be intrusted mutual benefit societies, insurance companies, and similar institu- tions and in absence of such, special branch Offices mTbe estab. Sir ''"^" ''''?' '' '"^«' committees. Besid'^erfoSt the necessary financial operations these local branch offices 2 endeavor to keep the population informed of the activity ofthe msurance institution and the advantages offered by it In adi mtnt if ^r/'^"/''° ;-t^i"« -g-lations concerning the invlt tills. *'' '"'^ '''' '""^ P^^P^^*^"'^ «^ ^--' and'cuinquenSii k frr/*?^-"?! procedure of old-age and invaUdity insurance IS regulated mainly by the new technical regulations "^"^'"i''^ Applications for insurance may be made either by the appUcant him- self or by another person either at the central office in R Jme or at^e branch offices or agencies of the institution or in post-Sc^ t^^ which they are forwarded to the main offices. The admS'raUon may dechne to insure an applicant, but he has a righrto apped to the admmistrative councU, whose decision is final ^'^ Kor each insured person an individual account is opened in th« books of the institution and a deposit book is made out and forwLtS Ih paS^ ''' '-' ^^-^-- '^^ '-^ -- ^e prlnLTS atfrT^"'*^ TI^^ °'*'*^ ** any agency of the institution, as enumer- ated above, but once a year the book must be forwarded bvth« insured through the agency, for balancing, for mSg t^^ entrit in the account and for adjusting the benefiis. of th^benlfit!^/^."""! '" 'r^^"^ •'°"°*"^ "^^y ^-^ themselves hv tv. M !^ , Jl' ^''*' *°** ''"'^"'^ "i^y be designated as agents appott^^- /""'»"" ''^*^' °' *^« insurance^institutLTay appomt agents m foreign countries. "^ 1890 REPORT OF THE COMMISSIONER OF LABOR. When an insured person ceases to conform to the qualifications for workmen's insurance required by the law, he must so inform the institution. If he fails to do so and information to that effect reaches the administration, it must notify him in writing that the appropriate measures will be applied to him. The insured may appeal to the council against the decision within one month, but the decision of the council is final. Wlien the question is settled against the insured the transfer of his account to the ''popular insurance'' roll is effected. When he again qualifies for the workmen's insurance rolls he must furnish the same evidence as for an original insurances When an annuity is granted the deposit book is exchanged for an annuity certificate. Annuities are payable in quarterly amounts, on March 1, June 1, September 1, and December 1, on presentation of this certificate by any office or agency of the institution. Annuity pay- ments not demanded witliin a w^hole year are suspended and apphca- tion for their recovery must be made to the central office. Payments due but not collected may be recovered by the heirs within two years. PROBABLE AMOUNTS OF PENSIONS. The new method of computing the pension values of payments has gone into effect so very recently that it is impossible to give any accu- rate estimate as to the values of pensions which the insured may expect under normal conditions. But as the actual values of pensions purchased could not change very materially notwithstanding the radical change in the method of computations, estimates based upon the old laws of 1898 and 1901 will be indicative if not altogether accurate. The actual pensions can not, of course, be guaranteed in advance; they must depend upon the rate of interest, the amount of the institution's subsidies and the invalidity table. In the following tables the assumptions are: An annual rate of interest of 3.75 per cent, an annual additional benefit of 6 lire ($1.16) from the institution to each individual account, and the accepted Itahan mortahty table. The following table shows the expected value of the annual pension maturing at 60 or 65, when payments of contributions begin at 20, 25, 30, 35, and 40, and when the annual contributions amount to 6, 12 ,18, 24, and 36 lire ($1.16, $2.32, $3.47, $4.63, and $6.95). The values of pensions differ materially under the two plans of insurance, the mutual (alienated capital) plan and the reserved-capital plan. If old-age insurance is taken out at the age of 20 or 25, the pensions may reach substantial amounts, but for persons contracting for such insurance at more advanced ages, and especially if the minimum con- tribution of 6 hre ($1.16) per annum is paid, the pensions are very small. It must be remembered, however, that a substantial increase CHAPTER vn. workmen's INSURANCE IN ITALY. 1891 of the value of the pensions is possible by delaying the time of the maturing of the pension from the age of 60 to the age of 65, or accord- ing to the new table of pension values (on p. 1893) to the age of 70. EXPECTED VALUE OF ANNUITIES, BY FORM OF INSURANCE, AGE AT TIME OF INSURING, AND AMOUNT OF CONTRIBUTION. HMJfiOF [Source: Luigi R ava, La Cassa Nazionale di Prevideiua per la Invalidia e per la Vecchiaia degli OperaL] Expected value of annuity for annual premium f 360 hre .($69.48) at the age of 65 years may be acquired by a monthly pav- ment o 1 90 lire (37 cents) per month on the reserved^apital plan and of 1.15 hre (22 cents) per month on the mutual plan. Unfortu- nately, it is unpossible to ascertain, because of the absence of detailed reports of the old-age insurance institutions, what the average con- tnbuUon of the persons insured amounts to. rr 1892 KEPOBT OF THE COMMISSIONER OF LABOR, ESTIMATED AMOUNT OF MONTHLY CONTRIBUTION NECESSARY TO INBtTRE A PENSION OF 180 LIRE ($34.74) AND 360 LIRE (J69.48), BY FORM OF INSURANCE AND AGE AT TIME OF INSURING. (Source: Lulgi Rava, La Cassa Nazionale dl Prevldenza per la In validltil e per la Vecchlaia degll Operai. ] Age at time of insuring. 20 years. 25 years. 30 years. 35 years. 40 years. Estimated amount of monthly contribution necessary to insure a pension of- $34.74 (180 lire). Mutual plan: Ma- turing at age of— 30 years. eo.l25 .193 .290 .454 65 years. Reserved capital plan: Maturing at age of— 60 years. $0,097 .097 .116 .193 .309 $0,183 .270 .396 .598 65 years. $0,097 .116 .193 .290 .434 $69.48 (360 lire). Mutual plan: Ma- turing at age of— 60 years. $0,338 .473 .666 .984 65 years. $0,154 .222 .318 .473 .704 Reserved capital plan: Maturing at age of— 00 years. 10.492 .666 .907 1.293 65 years. $0.2«1 .3ft7 .511 .704 .994 ORDINARY PENSION INSURANCE. A tariff of rates for ordinary voluntar^^ old-age pension insurance, authorized by the law of July 28, 1901, and by the decree of Decem- ber 22, 1901, was published June 26, 1904. This form of insurance does not confer any specific gratuities upon the assured, but gives the advantage of insurance in an institution not conduct e< I for profit, which may manifest itself in lower rates. Both forms of insurance are permitted — the alienated-capital plan and the reserved-capital plan. In the former plan the premiums are forfeited at death, in the latter plan they are returned. A few rates for each plan are quoted in the following table, where the amount of pension maturing at a definite age and purchasable by a single payment of $100 is given. While the alienated plan naturally permits a higher pension than the reserved-capital plan, it is nevertheless evident that for longer periods the difference becomes very much less important. It is evident that, while attractive in form, these ordinary old-age pensions are of comparatively little importance to the wage-workers, with the standard of earnings prevailing in Italy. Thus it is true tliat by mak- ing a single deposit of $100 to the credit of his cliild at the age of 5, the workman could guarantee to that diild an annual pension of $168.90 beginning at the age of 65, but there are very few workers in Italy with an income large enough to make such provision for the old age of their cliildren. At the age of 25 a workman coultl begin to provide for his own old age; then each dollar paid in would guar- antee a pension of 46 cents beginning with the age of 60, the value of the pension purchasable with each payment decreasing with advanc- ing age. No statistics of this branch of activity of the institution were available. CHAPTER VII. — workmen's INSURANCE IN ITALY. 1893 AMOUNT OF ANNUAL PENSION SECURED FOR A PAYMENT OF $100 ON THE ORDINARY PLAN, BY AGE AT TIME OF PURCHASE AND AGE AT MATURITY OF PENSION. ISource: Cassa Nazionale di Previdenra per la Invalidity e per la Veochiaia degll Operai Assicurarlonl Popular! di Rendite Vitalizie Condizioni General! e Tariife] Assicuranom Form of insurance and age at time of purchase. Amount of annual pension secured for $100 when maturing at age of— 20 years. ALIENATED CAPITAL, 5 years 10 years 15 years 20 years 25 years 30 years 35 years 40 years 45 years 50 years 55 years 60 years 65 years 69 years RESERVED CAPITAL. $8.57 7.02 5.80 5 years 10 years 15 years 20 years 25 years 30 years 35 years 40 years 45 years 60 years 55 years 60 years 65 years 69 years 25 years. $10. 91 8.95 7.39 6.04 30 years. $14.02 11.51 9.60 7.77 6.31 35 years. 76 42 33 8.62 6.91 5.51 4.36 1L08 8.89 7.08 5.61 4.40 $18.27 14.99 12.38 10.12 8.22 6.68 40 years. $24 24 19.88 16.41 13.42 10.91 8.86 7.30 45 years. 14.42 11.58 9.23 7.30 5.73 4.46 19.18 15.36 12.25 9.69 7.62 5.93 4.45 $32.83 26.94 22.24 18.18 14.78 12.01 9.75 7.89 25. 20. 16. 13. 10. 8. 6. 4. 92 81 60 13 32 02 16 65 50 55 60 years, i years, years. 65 years. $45.81 37.60 31.05 25.08 20.62 16.76 13.61 11.02 8.85 $66. 54 45. 36. 29. 24 19. 16. 12. 10. 56 63 10 87 96 35 78 01 86 23 36.18 29.05 23.16 18.33 14 39 11.20 8.60 6.49 4 79 $102.09 83.79 68.17 56.54 45.95 37.36 30.34 24 55 19.73 15.69 12.23 52. 42. 33. 26. 20. 16. 12. 9. 6. 4 57 20 65 63 91 27 49 43 96 99 80. 64 51. 40. 32- 24 19. 14 la 7. 5. 61 72 61 85 07 94 16 46 67 65 26 $168. 138. 114 93. 76. 61. 50. 40. 32. 25. 20. 15. 90 63 46 55 19 63 64 95 24 32 70 yean. 133. 107. 85. 67. 53. 41. 31. 23. 17. 12. 8. 5. 39 08 39 58 07 28 70 92 66 . 65 71 68 ' $311. 70 255.84 211.22 172 65 140.30 114 06 92.63 74 97 6a 23 47.89 37.34 28.28 20.49 15.04 246.15 197. 61 167.59 124 70 97.93 76.17 58.49 44 16 32.59 23.35 1&07 10.47 &33 3.93 A comparison of this tariff with the precedmg estimates makes possible an approxunate determination of the value of the subsidies In the foUowmg table an effort is made to compute this value by comparmg the value of the pension on the subsidized plan and on the ordmary plan, under the supposition of an annual premium of 12 hre ($2.32). J ♦ l! ) f 1894 REPORT OF THE COMMISSIONER OF LABOR. COMPARISON OF EXPECTED VALUES OF ANNUITIES UNDER THE DIFFERENT FORMS OF INSURANCE, BY AGE AT TIME OF INSURING. Form of insurance and age at time of insuring. ALIENATED CAPITAL. Pension maturing at age of 60, iiwured at age of— 20 years 25 years 30 years 35 years Pension maturing at age of 65, insured at age of— 20 years 25 years 30 years 35 years 40 years EESERVED CAPITAL. Pension maturing at age of 60, insured at Eige of— 20 years 25 years 30 years 35 years Pension maturing at age of 65, insured at age of— 20 years 25 years 30 years 35 years 40 years Expected value of annuit v for annual premium of 92. '62 (12 lire). Work- men's form. $45.74 34.55 25.48 17.56 82.60 62. 92 47.29 34.55 24.70 35.51 27.60 20.84 14.67 57.90 45.36 34.93 26.44 19.49 Ordinary form. $28.16 22.11 17.20 13.20 44.33 34.32 26.19 19.58 14.22 16.18 11 86 8 49 5.87 27.36 20 22 14, (H 10.31 6.96 Exc<»ss of work- men's annuity. $17.58 12.44 8.28 4.36 38.27 28.60 21.10 14.97 9.48 19.33 15.74 12.35 8.80 30.54 25.14 19.29 15.13 12.53 The comparison shows that a very considerable proj)ortion of the workmen's pension consists of the subsidies. This excess of the workmen's pension over an ordinary pension purchased at the same cost is higher for the reserved-capital plan than for the alienated- capital plan. The reason for this is obvious, for in the workmc^n's pension on a reserved plan only his own payments are reserved, while the subsidies are given on an alienated plan. The difference between the values of pensions on the reserved and the alienated plans is not so great for the workmen's pension as for the ordinary pension, for the workmen's reserved-plan pension is only partly on a reserved plan. On an alienated plan, therefore, from one-third to almost one-half of the pension is due to the subsidies, and on the reserved plan from one half to two-thirds. STATISTICS. The statistical information concerning the old-age and invalidity insurance institution is very meager. In the following table is given the number of persons taking out insurance from the beginning of the activity of tlie institution in October, lcS99, until the close of 1908. The number of persons taking out insurance shows considerable fluctuations, but the largest numbers are found in the years 1902 and 1906, due to the influence of the amendments to the organic law. CHAPTER VII.— workmen's INSURANCE IN ITALY. 1895 The total number of accounts opened during the years shown in the table equals nearly 300,000; according to the latest information available the total number of accounts opened up to November 30 1910 reached 352,376; but, unfortunately, further details as to the distribution of these by sex, age, occupation, etc., are lackin- For the years 1904 to 1908 the data are shown by the place where insurance was taken out-i. e., either the main and branch offices of the institution or the post-offices; and the table shows the very impor- tant function of the post-office as a stimulus to popular thrift In some years more than one-half of the insurance was taken out at post-offices. A comparison of the two plans of insurance indicates that they are about equally popular, both meeting existing demands. During the hve years for which data are available, 1904 to 1908, the total num- fifon.f ^ r'f '^T"^ r *''^ "'"'^""l P^*"! (alienated capital) was 84,903 and that of policies on the reserved capital plan 84 849— almost exactly equal. ' NUMBER OF PERSONS INSURED EACH YEAR IN THE NATIONAl mn.i,r-v .x-,> SJu^^S IT.TZ' ''•'^"™™'^'' - — - --™-- Axrrll/^o? (Source: Bolletunodelrumdo del L"™™. ^to J^««.^and Die Arbeiter-Ve^icheruog ta Ausiande. Year. Number insured at— Number insured under- Total Post-offices. Main office and branches. Mutual plan. Reserved- capital p an. insured during year. 1899(a).... C) (*) C) 13,687 12,378 25,590 14, 162 11,302 (b) (*) C) (*) 17. 739 11,302 25.201 20,998 17,393 C) C) («>) C) 15,840 10,889 27.875 16, 630 13, 069 (M («•) C) C) 15.586 12. 791 22,916 18.530 15,026 1900 776 1901 10.279 1902 20. 324 1903 54.470 1904 28.779 1905 31.426 1906 23,680 1907 ■ 50.791 1908 35. 160 28.695 b Not separately reported. a For last 3 months only. Very interesting data concerning the size of the contributions of ri^oT^f T ^'? P"b"«li«d by the old-age insurance institution Qn\ 'i '^^ unfortunately they refer only to the years 1900 to IMS, and no later comparable data were published ; they nevertheless throw some light upon the activity of the fund. 67725°— VOL 2— 11 26 1896 REPORT OF THE COMMISSIONER OF LABOa. ANNUAL CONTRIBUTIONS OF PERSONS INSURED IN THE NATIONAL OLD-AGE AND INVALIDITY INSURANCE INSTITUTION, 1900 TO IWA. [Source: BoUettino di Notizi* sul Credtto e suUa Previdenza, l\m.] Amount of contributions during year. Total membership: No contribution Less than 6 lire ($1.16) 6 lire (SI. 16) 6.01 to 10 lire (SI. 16 to $1.93) 10.01 to 25 lire ($1.93 to $4.83) 25.01 to 50 lire ($4.83 to $9.65) 50.01 to JOO lire 10.01 to 25 lire ($1.93 to $4.83) 25.01 to 50 lire (U.&i to $9.65 ) 50.01 to 100 lire ($9.65 to $19.30) 100 lire ($19.30) and over Total Membership on reserved-capital plan: No contribution Less than 6 lire ($1.16) 6 lire ($1. 16) 6.01 to 10 lire ($1.16 to 81.93) 10.01 to 25 lire ($1.93 to $4.83) 25.01 to 50 lire (4.83 to $9.65) SO.Ol to 100 lire ($9.65 to $19.30) 100 lire ($19.30) and over Total 1900. Num- ber con- tribu- ting. 238 2.807 4,890 615 1.441 881 364 227 11.463 155 1,679 1,586 351 861 598 119 47 5,396 83 1,128 3.304 264 580 283 245 180 Per cent of tot^ 2.08 24.49 42.66 6.36 12.57 7.69 3.17 L98 100.00 2.87 31.12 29.39 6.50 15. 96 11.08 2.21 ■ .87 1901. Num' ber coo^ tribu- ling. 2.734 4.612 n. 185 2, 450 5. 397 .i, 190 2,713 2,2iG 42. 497 1.286 2. 731 7.. 380 1.250 ■2. 879 1.782 I 280 1 220 100.00 1.37 18.59 54.46 4.35 9.56 4.66 4.04 2.«7 6.067 100.00 1!>, 808 1.44S 1,881 n.805 1,200 2,518 ! 108 1,433 996 22. 689 Per cent of total. 6.13 10.85 4S. 14 5.77 12.70 7.51 6.38 5.22 100.00 190Li. Num- ber oon- tribu- ting. liO.929 24,907 27.640 3, 2.55 14.456 4.261 3.545 2,581 Per cent of U>tal. 11. 94 27.20 30 8 1) 1 18 79 <>5 4.87 2.82 91,574 100.00 6.49 13. 79 37-26 6.31 14. 53 9.00 6. 46 6.16 100.00 6.38 8.29 52. 03 5.29 11.10 6.20 6.32 4.39 100.00 4,963 14.480 12,325 1.391 6,^> 2.280 l.O.'iS 1.724 4.5.104 11.00 .32. 10 27.33 3. OS 15.27 5.06 2. .34 8.82 100.00 5.966 10, 427 15,315 1,864 7,570 1,981 2,490 857 46.470 12.84 22. 44 32. 9C> 4.01 16.29 4.26 5.36 1.84 100.00 1903. Num- ber ooa- tribu- ting. 35,959 9,<»4 39,650 4,540 18,094 7,150 6.097 5,121 126,295 19.547 5,133 17. 199 2.017 9,-192 4,09()7 14,221 15,247 15,474 15,744 15,(i73 16, 275 16,254 21,479 Fund of pensions granted. $2,860 16,341 48,978 59,343 69, 19() 104,143 186, 173 208, 105 Deposits under the acci- dent in- surance law made in case of perma- nent dis- abiUty. 157,573 212, 199 259,837 235,904 Year. Fund of the insured. Amount to be redis- tributed among individual depositors' accounts. Popular old-age pension insurance. Provident fund for the employees of the central ollice of the in- stitution. Miscella- neous. Funds to be dis- tributed, December 21. Total. 1899 $748 31,744 256, 491 579,015 1,151,385 1,913,535 2,662,872 3,478,514 4,002,543 5,025,358 $386 386 $528 200 465 456 2,312 14,095 53,741 33,858 56,259 122,861 $27,296 359,226 462,487 520,906 698, 139 677,420 1,030,472 1,161,414 1,238,582 1,480,347 $2, 379, 462 1900 $936 1,941 3,176 4,773 6,383 8,201 10,919 13,888 16,289 2, 767, 654 1901 3,;i83,516 1902 16, 405 34,740 78, 125 82,025 136,254 778,003 897, 450 4, 254, 577 1903 5, 448, 645 1904 """$27 ,"706' 52,047 88,000 159, 146 6, r»79, 193 1905 8, ;?95. 200 190(i 10,006; 954 1907 1908 12,«i02,002 15,751,559 CHAPTER VII. workmen's INSURANCE IN ITALY. 1899 As is required by the law and regulations, the largest part of the assets IS invested in interest-bearing securities held by the Bank of Deposits and Loans. In 1908 nearly 80 per cent of the total assets were so invested. The amounts invested as loans to Provinces and communes since 1903, in virtue of the act of 1902, are insignificant- though the revised act permitted investment in real estate, this' form of investment has not shown any increase. ASSETS OF THE NATIONAL OLD-AGE INSURANCE INSTITUTION. [Source: Bollettino dell' Ufficio del Lavoro, Vol. XIII, May, 1910.J Year. 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 Securities held by the Bank of Deposits and Loans. Interest due on securities held. $2,345,235 2,714,542 3,152,737 3,759,876 4.530,435 4,763,537 6,179,801 7,793,755 10,575.995 12,444.446 $26,621 33,746 42,044 68,116 85,632 88,768 116.265 156,029 178.456 207,956 Loans to Prov- inces, com- munities, etc. $403, 005 631,455 746.633 660,694 537.665 463,094 Urban real estate. $774,729 901,587 901.645 901,992 903.150 Account with the Bank of Deposits and Loans. Cash on hand in central office, branches, and post- , office, i Miscel- laneous bills receiv- able. $6,447 6,975 47,756 329,867 240.429 186,768 128.941 331,862 398, 407 1,432,908 $966 12,185 110,263 96,716 169,791 124, 618 216, 790 157,023 959 271,412 $193 206 30,715 2 18,753 9,318 5,183 5,946 8,538 28,593 TotaL r2. 379, 462 2.767.654 3,383.516 4,254,577 5,448,645 6, 579. 193 8,295,200 10,00G,9,>I 12. 602, 002 15.051,559 COMPULSOEY OLD-AGE INSIIRANCE FOR CERTAIN STATE EMPLOYEES. The Itahan Government has at various times granted old-a<^e and superannuation pensions to various groups of its emplove^s It is impossible here to enter into a discussion of these civil-service pension laws. But the general tendency to incorporate these pen^ sion schemes into the National Old-Age and Invahdity Insurance Institution deserves to be emphasized, at lea^t as far as the indus- trial employees of the Government are concerned. Perliaps the best example of this tendency is found in connection witli the employees of the government tobacco monopoly. TOBACCO MONOPOLY. On November 23, 1886, a bill for the establishment of a pension fund for the employees in the tobacco industry was introduced but It did not come up for discussion. A similar fate befell the later effort of November 19, 1887. While both these efforts failed, the admrnistration was forced to begin the payment of regular benefits to disabled and superannuated employees. In the beginning such intormal benefits were paid only to employees working for time wages, but smce 1892 these benefits were extended to workers for piece wages. From 1892 to 1899 the minimum annual pension for a 7^'^^ZT ^""^ ^^^ ^''^ ^^^^'^^^' ^^ 1899 it was increased to 180 lire ^^^4.74), m 1901 to 216 lire ($41.69), and in 1902 to 240 hre ($46 3'>) J 1900 BEPORT OF THE COMMISSIONEE OF LABOE. The maximum in 1897 was placed ut 240 lire ($10.32), in 1899 increased to 360 lire ($69.48), and in 1902 it was abolished. According to the rules adopted in 1892, inability to work did not give the right to a pension unless the appUcant had reached the age of 60; in 1894 the conditions were modified so that 35 years of service were suffi- cient, without regard to the age at the time of applying for a pension; and in 1899 the limit was reduced to 25 years of service. The following table gives an indication of the rapid development of these benefits during the period 1894 to 1903, the average number of employees being about 15,000: NUMBER OF BENEFICIARIES AND AMOUNT OF BENEFITS PAID TO EMPLOYEES OF THE TOBACCO MONOPOLY, 1894 TO 1903, BY YEARS. [Source: Ballettlao dl Natizi3 sal Credito e sulla Praviisnza, ISH.] Fiscal year. 1.S94-5... 1895-G... 1890-7... 1897-8... 1S9S-9... 1899-1900 1900-1... 1901-2... 1902-3... Number of )>enefi- ciaries at the end of the year. 221 348 309 531 685 1,238 1,754 2,094 2,445 Amount of benefit. H paid durinj? the year. If), 807. 94 11,872.03 13,832.44 21,512 77 28,589 5J 62,718 99 105,594 29 138,247 71 158,436 14 Average amount of benefits at the end cf th«« year to- Females. Mules. ('•) (") (") (■') f02.09 tH>.19 bJ39.20 ft 40. 51 ft 41. 74 ft50.6t) *60.51 128.48 129.63 a Not separately reported. ft Average for both soxes. On September 29, 1899, immediately before the l^eginning of the operations of the old-age insurance institution, Minister Carmine ruled that no pei-son could be accepted as a permanent employee of the tobacco industry who would not be insured in the national old-age insurance institution. The contributions to be deducted from their earnings and paid by the administration of the indus- try were 1 lira (19 cents) per montli from the wages of females and 2 lire (39 cents) per month from the wages of the males. To this contribution the administration of tlie industry added an equal amount. Thus the system of gratuitous old-age pensions was abol- ished in 1899 except for persons already employed. Considerable diiference in the treatment of the old and new employees arose. Those employed on or before September 30, 1899, were entitled to a pension after 25 yeai-s of service. This pension was deternuned by the average annual salary for the last five years of service and amounted to yV of the average salary when the service was less than 30 years, -fo when tlie length of service was 30 but less than 35 years, tV if 35 years but less than 45 years, ^ if 45 years but less than 50 years, and j\ if 50 years or over. In all cases, however, the pension CHAPTER VII. workmen's INSURANCE IN ITALY. 1901 was due unless disability was established. The minimum pension was 240 lire ($46.32) for women and 480 lire ($92.64) for men. If such disability arose before the completion of 25 years of service, but after 10 years, the employee was entitled to ^jj of the averacre annual salary for the preceding five years, but such pension was to run only 2 years if the employee had served less than 12 years; 3 years if he had been in service 15 years but less than 20 years, and for 4 je&rs if he had been in service 20 years but less than 25 years. The position of persons entering service after September 30, 1899, was entirely different, as they were subject to the general rule^ of the old-age insurance institution. But a computation showed that the pensions acquired under the latter conditions at the age of 60 for men and 55 for women would not be inferior to those granted under the old conditions. To make the provisions for the two classes of employees uniform, and to sanction the system by legislative action, a bill was introduced on March 17, 1904, which with a few modifications became a law on June 16, 1904. The law regulates the pensions for such employees as were m the regular service before September 30, 1899, subsequently referred to as ''old employees," and for those who entered the service since then and referred to in the following accounts as new employees The conditions are still very much different for these two classes of employees, but an effort was made in the law to equalize them as far as possible under the radical difference that only the new employees confribute to their old-age and invahdity insurance by compulsory insurance m the national institution. All workmen permanently employed in the six institutions of the tobacco-manufacturing monopoly, whether day workers, piece- workers, master mechanics, artisans, supervisors, or clerks, are included. The law provided for both superannuation and invalidity benefits. The old employees are entitled to a pension from the adminis- tration, and the new employees must have their pensions liquidated by the old-age insurance institution under one of the followincr three conditions : "" (1) When they reach the age of 60 (55 years for female employees); (2) men they are disabled for further employment after 25'j:ears of ser\dce; or (3) When they are disabled through injury or disease contracted because of their employment, provided they renounce their ricrht to compensation under the accident-insurance law. Lump-sum invalidity benefits are paid if the old employee has become disabled (not through the causes mentioned in the preceding paragraph) before he has acquired the right to a pension but after 1902 REPORT OF THE COMMISSIONER OF LABOR. 10 years of service. Under identical conditions the new employees may demand the liquidation of their accounts in the old-age Lnsurance institution either in the form of pensions or lump-sum payments. When an old employee is forced to ^ive up the service on account of disability (invalidity), a right to the regular superannuation or invalidity pension is acquired; but after 10 years of service he receives a lump-sum benefit computed on the basis of the average daily wages for the precediQg five years, which is multiplied by 300 when the length of the service is less than 15 years, by 450 when it is 15 years but less than 20 years, and by 600 when it is 20 years but less than 25 years. In case of new employees the national insurance institution must liquidate the pension either as a pension or as a lump sum, at the option of the insured. If the amount is below that named above the administration of the tobacco monopoly adds the necessary dif- ference to bring it up to that. The superannuation or invalidity pension of the old employee who has been in service 25 years is equal to the average daily wages for the preceding 10 years (excluding the two years of lowest wages) multiplied by 150. This gives approximately half liis annual salary. For each year over 25 years up to and including tlie 45th year of service 3 units are added to the multiplier, so that by the end of 45 years the multiplier would be equal to 210 and the pension to -^ of the annual wages. For each year of service over 45 six units are added, so that the full pension, equal to annual wages, would be reached after 60 years of service. In no case shall the pension be less than 300 lire ($57.90) for female employees and 480 lire ($92.64) for male employees. The new employees receive their pensions from the National Old-Age and Invalidity Insurance Institution, com [)U ted according to the general rules. Their insurance may be either on the mutual (alienated-capital) plan or the reserved-capital plan (see p. 1878), as explained later. If the pension computed by the national institu- tion falls below the minima mentioned in the preceding paragraph, and the insurance has been taken on the mutual plan, then it is raised to the minimum, and the administration of the tobacco industry pays to the national old-age institution the difference necessary to bring the computed pension up to the minimum. Wlien the insur- ance has been taken on the reserved-capital plan, then the payment is such as would be necessary to bring the pension up to the minimum, if the insurance had been taken out on the mutual (alienated ca]>ital) plan. That is to say, the minimum quoted is guaranteed to the employee only as a pension or annuity. But if the employee prefers to reduce the amount of his annuity by insuring on a reserved-capital plan, that circumstance shall not entitle him to any extra benefit. CHAPTER VII.— WORKMEN 's INSURANCE IN IT.\LY. 1903 In computing the length of service, all periods of service are added together, mcludmg the time of absence on account of sickness or military service. Credit is given for the tune spent in service in the private tobacco works in Sicily. The entu-e cost of the pensions of the old employees is met by the Government as a part of its appropriation for the tobacco works Ihe new employees are required to pay for their insurance, the fol- lowing amounts being deducted from then- wages: One lira (19 cents) per month for the female employees, who are in the vast majoritv and 2 In-e (39 cents) per month from the wa^es of the male employed' In addition a monthly contribution is granted by the administral tion, enough to make, when added to the members' contribution and the subsidy of the msurance institution, a total of 34 fire ($6 56) for the females and 58 Hre ($11.19) for the males. In other words, the total annual subsidy of the State and of the insurance institution amounts to 22 lire ($4.25) for the female employees and 34 lire ($6 56) for the male employees. * Each employee must decide under which of the two plans (reserved or ahenated capital) he wishes to be insured. Within one year from the promu gation of the law the change from the alienated capital to reserved plan was permitted. ^ All superannuation and invahdity pensions paid according to pre- vious regulations are transformed into pensions accordmg to this law but on the basis of the wages and length of service established at the time when the benefits were granted On March 31, 1903, at the time when the'text of the law was bein^ prepared, there were 16,184 names of workers on the rolls of th^ tobacco monopoly; of these, 2,371 were pensioners and 13,813 active employees and only 1,388, or about 10 per cent of the Ictive em- ployees were males. Only 3,170, or less than one-fourth, of these entered the service smce September 30, 1899, and were subject to the new provisions for compulsory insurance, while 10,643 or over t n-ee-fourths, were entitled to gratuitous pensions. An es imate of he capitahzed value of the pensions ah-eady running or to be Tanted ;i^e1;T82Xl'"'''^^^^ '''"' ^'^ ^^'"^^ '' ^^^^^^ ^S^ SALT WORKS. By the law of July 9, 1905, the provisions of the law granting pen- ions to he employees in the tobacco industry were exteSTracd emblr 30 ISQQ « those who were employed on or before Se,>- tSL T. ' , ^"^ "'°'^ "^^^ ^°'^'-«d t^« service since that time. These works employ about 2,000 persons. "BoUettino dell' Ufficio del Lavoro, Vol. IV, 1905. H I 1904 REPORT OF THE COMMIvSSIONER OF LrABOB. OFFICE OF ENGRAVING AND PRINTING. A special law granting pensions to the workers of both sexes employed in the government office for engraving and prmtmg secu- rities and valuable papers was approved on July 7, 1905. Tins law practically repeats the provisions of the law for the tobacco employees, except that the division into old and new employees dates not from September 30, 1899, but from the day of the pronmlgation of the present law (July 15, 1905). UNEMPLOYMENT INSURANCE. No governmental institution for the insurance of wage-workers acrainst unemployment exists in Italy, although the problem of unem- ployment insurance or rather unemjdoyment relief has been under serious discussion for some time. So far the practical movements of relief have been limited either to cooperative or to humanitarian relief. Only within the last year or two has the subject of government aid to unemployment insurance been seriously discussed. No general discussion of the complex problems of unemployment- is here intended, but the measures applied and proposed in Italy and the results of their appUcation will be briefly sketched. For a proper appreciation of the question of unemployment insur- ance, the few available statistical data concerning unemployment in Italy will be quoted. In view of the importance of trade unions in the development of unemployment insurance, the main data con- cerning trade unions in Italy will be brought together, and the most interesting experiment in the field of unemployment insurance will be described. UNEMPLOYMENT STATISTICS. Data concerning the amount of unemployment in Italy are rather scant. While chambers of labor since 1904 have been required to furnish the Bureau of Labor with data concerning the number of organized workers and also the number of unemployed, the data thus furnished are, as yet, very incomplete. Perhaps the best statistical study of the unemployed is that pub- Ushed by the Humanitarian Society in 1905 and referring to the status in Milan on July 1, 1903. Of an entire productive population of 165,305, only 27,306, or 16.5 per cent, made any report relative to unemployment. Of these, 6,388, or 23.4 per cent, of the number reporting were without employment on July 1, 1903. In the following table the number and per cent of these 6,388 unem- ployed persons are given by age and sex. CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1905 AGE AND SEX OF 6,388 PERSONS UNEMPLOYED IN MILAN ON JULY 1. 1903. ISource: Contro la DisDccupazione. Pubblicazioni della Society Umanitaria. April. 1905.] Age. Under 13 years. 13 to 16 years... 17 to 20 years... 21 to 25 years... 26 to 30 years... 31 to 40 years... 41 to 50 years... 51 to 60 years... Over CO years.. Not reported... Males. Nmnber. Per cent. Females. Total. Total. 30 402 764 C73 430 657 603 5»4 364 115 0.6 8.7 16.5 14.5 9.3 14.2 13.0 12.8 7.9 2.5 Number, i Per cent. Nun.ber. Per cent. 4,632 100.0 19 218 313 295 161 243 204 152 99 52 1.1 49 12.4 620 i 17.8 1,077 16.8 9tl8 9.2 591 13.8 900 11.6 807 8.7 746 5.6 463 3.0 167 0.8 9.7 16.9 15.2 9.2 14. 12. U. 7. 2. 1,758 100.0 6,3S8 100.0 The length of the state of unemployment, as indicated in the answers of the unemployed in Milan, is shown in the next table Altogether 165,305 persons were asked to report in regard to unem- ployment. Of this number, 137,999 persons, or 83.5 per cent, did not respond at all; 18,720, or 11.3 per cent, reported days of unemploy- ment withm the preceding year; and 8,586, or 5.2 per cent, siated that they had never been unemployed . Of the 6,388 persons reported unemployed on July 1, 1903, 878, or nearly 14 per cent, were unem- ployed continuously from 1 to 4 years and over. DURATION OF UNEMPLOYMENT OF 6,3SS PERSONS JULY!, 1903, BY SEX. UNEMPLOYED IX MIL.\N ON '^°""^- *''""™ '» Disoccupazione. Pubblicaxioni della Socie.4 rmanilaria, April. 1905.J Duration of uneinployinent. Males. Niuiiber. 8 days 15 days 1 month 2 months '. 3 months '. 4 to 5 months.. 6 to 7 months. . 8 to 9 months . . 10 to 11 months. 1 year 2 years. 3 to 4 years. . Over 4 years . Not reported. Total. 278 384 513 473 4(51 429 437 180 76 380 167 66 96 C92 Females. Total. Percent. 6.0 8.3 11.1 10.2 10.0 9.3 9.4 3.9 1.6 8.2 3.6 1.4 2.1 14.9 Niuuber. 107 151 253 226 198 138 119 49 27 109 35 13 12 319 Percent. Number. Percent 6.1 8.6 14.4 12.9 11.3 7.8 6.8 2.8 1.5 6.2 2.0 .7 .7 IS. 2 385 535 766 G99 659 567 S51 229 103 489 202 79 108 1.011 4,632 100.0 1,750 6.0 8.4 1-2.0 lao 10.3 a? 3.6 1-6 7.? 3.2 1.2 1.7 15-8 100.0 t). JSi 100.0 The above data, interesting in themselves, because tliev throw mnl" • T f.o'^POsition of the unemployed body, do not give very e o -t "/T ^ '° ''•' '"*" °^ unemployment. In a late^ shows the nt/T' »^tf"t'«« 7 interesting table is given which S hint °^ ""«'"P>°y'««'it fo-- '"^embers of labor organizations, conlrn .u^^° ''^ ^"''^'^^ ^^""'^ furnishing regular monthlv report^ concermng the extent of unemployment. " mmmmm SMi J 1906 REPORT OF THE COMMISSIONER OF LABOR. PER CENT OF MEMBERS OF MILAN LABOR ORGANIZATIONS UNEMPLOYED EACH YEAR, 1906 TO 1909. [Source: Societa Umanitaria, Milano, Disoocupazione Colloeamenti Sussidi in Mllano nel 1909.] Year. Average monthly number of— Per cent of mem- bers un- em- ployed. Members of unions. I'^nem- ployed members. 1908.... 1907.... 1908.... 1909.... 5.392 6,499 7,459 6.148 152 230 257 169 2.82 3.54 3.45 2.75 TKADE-UNION STATISTICS. Historically, unemployment insurance, or, to use a broader and more exact term, unemployment rt'lief, has grown up primarily as a function of the labor associations. While a few of the efforts toward furnishing unemployment relief have been made independ- ently of labor organizations, the latest and most successful experi- ments, such as the Ghent system in Belgium and tlie system of the Humanitarian Society, are based upon the recognition of this natural correlation. A few statistical data concerning the growth and extent of labor organizations in Italy will tiierefore bo useful in indicating the available organization for unemployment relief. Most of the Italian labor organizations are affiliated with the federations of trade associations, the federations of farm laborers, or the chambers of labor. The chambers of labor may be compared to our American central labor unions, though in Italy they have a semiofficial standing. They are representative organizations, composed of delegates from labor organizations, and have been growing in strength very rapidly during the last few years. At the beginning of 1906 there were 82 chambers of labor in Italy, composed of 2,732 organizations, having a membership of 298,446. Two years later the number of chambers had increased to 92, the number of organizations to 3,747, and the membership to 546,574. The total income of these chambers in 1907 was computed at 432,241 lire ($83,422.51) and the expenditures at 402,266 lire ($77,637.34). The federations of trade associations are not as strong numeri- cally as the chambers of labor and do not seem to show the same tendency to growth. In the beginning of 1907 there were 21 of these federations, composed of 2,045 organizations, with a member- ship of 204,271, while in the beginning of 1908 there were 22 fed- erations, with 2,550 organizations and 191,599 members. Within the year four new federations were organized and three dissolved. CHAPTER VII.— WOKKMEN 's INSURANCE IN ITALY. 1907 lTi%^Ji'^ri/.T^''T!u^^''' ^'^"^ approximately determined at 583,642 lire ($112,643) and their expenditures at 480,526 lire ($9'^ 74'^) The third inaportant group of labor organizations is found'in the field of agricultural labor. The organizations of farm laborers in A. .u u^ "" ^'"'''^^ ^^""^ ^^P^^^^ ^^^^^i^ ^he la^t few years At the begmnmg of 1906 there were 982 of these oi^anizations' with a membership of 221,913. Two years later the number of organizations had increased to 1,809 and the membership to 425 983 At the begmning of 1908 there were 189,423 farm laborers having membership m chambers of labor and 108,191 afhUated with the JN ajiional Federation of Agricultural Laborers. With 546,574 members in the chambers of labor, 191,599 in the tederations of trade associations, and 425,983 in federations of farm aborers, there would seem to be 1,164,156 members of labor unions m Italy. This number, however, includes a great many dupUca- tions, as many of the members of the trade associations and of the farm laborers' unions also belong to the chambers of labor Combmed statistics for these unions, indicating the relation between the local, central, and the national organizations were pubhshed m January, 1908, and refer to the beginning of 1907 They are reproduced in the following table and show a grand 'total of about 684,000 members of labor organizations in Italy NUMBER OF ORGANIZATIONS AND MEMBERS OF LABOR UNIONS AT THF BKnvXTV ^ OF 1907. BY CLASS OF LABOR AND AFFILIATION ' ^[Sourw: Bolletti;io deU' Ufficio del Lavoro, January, 1908.] Class of labor and affiliation. Agricultural labor: Affiliated with chambers of labor Independent .V' Number of orpani Number of nations, i members. Total. Industrial labor: Affiliated only with chambers of labor Affiliated only with federations Affiliated with both chambers Independent of labor and federations . Total Railroad employees. Grand total... 551 752 102, 973 17(3, S40 1,303 279,513 -^J?)!ated only with chambers of labor Amiiated only with federations. 1,438 mi 569 282 144. 100 52.960 122, 164 43,309 2,950 I 362.533 60 42,000 4,313 j 684,046 I^ndependeni'?; ^oth chambers oVlabor and federations Z J ::::::::::;::;: Total affiliated with chambers of labor A otal affiliated with federations 1.989 a 721 569 1.034 2, .558 1,290 247,073 a 94, m> 122, IM 219, S49 369.237 217,124 a Including railroad employees. tl JfT *^-^*'' "f, ^'^''" *"* S'"*"''*'" ^^""Sth by separate industries in wons and members m each large industrial group, but also their 1908 REPORT OF THE COMMISSIONER OF LABOR. respective affiliations and the proportion between organized labor and the total number employed according to the census of 1901 for almost all groups. The per cent of employed persons holding mem- bership in labor unions was obtained by di\dding the number of mem- bers in each industry at the beginning of 1907 by the number of persons in each industry according to the census of 1901. No later census figures were available. NUMBER OF ORGANIZATIONS AND MEMBERS OF LABOR UNIONS AT BEGINNING OF 1907, BY INDUSTRY AND AFFILIATION, AND PER CENT OF EMPLOYEES IN LABOR UNIONS. [Source: BoUettino dell' Ufflcio del Lavoro, January, 1908.] Industry. Labor organizations. Affiliated with— Chambers of labor only. Num- ber of or- gani- za- tions. Agriculture , Fishing Metal raining Marble and stone quarrying and Tv'orking Sulphur mining and extracting Metallurgy Precious metals, working Pottery Bricks, etc Glass Building trades Chemical industry. . Woodworking Basket making Straw goods Paper making Printing Spinning, weaving, and dyeing Leather Clothing, etc Hat making Shoemaking Barbers Cereals and pastes. . . Bread baking Sugar making Other food products. Work in ports Navigation Govermnent estab- lishments street railroads Various public em- ployments Nurses, etc Not specified 551 1 3 G 100 11 7 45 31j 130 IS 91 5 16 34 02 21 52 5 37 22 50 29 2 52 461 13 Num- ber of mem- bers. 102,973 60 240 Federations only. Num- ber of or- gani- ea- ttons. 24 4,326 1,845 12,733 891 796 5,663 2,079 13,428 2,109 8,001 227 1,221 396 2,383 7,799 2,033 4,030 352 1,254 1,663 5,009 2,438 295. 8,496 9, 283 . 918 44 82 20 31 18 Num- ber of mem- bers 50 2,700 9,895 1,091 2,911 1,141 22415,655 5i 2,007 27 972 2 24 24 5 4 11 58 6 30 16 4,016 Total. 99 8,518 15 904, 347 30,694 13 1 282 2,330 1,612 136 269 109 3,842 197 255 1,261 Both cham- bers of labor and federa- tiims. Num- ber of or- gani- za- tions Num- ber of meia< bers. 30 591 6 18 15 145 7 33 1 60 3 34 45 8 9 18 35 5 5 38 1 3,140 1,850 1,160 35 8 10 35 1 2,987 24,&19 535 4,255 1,708 26,&48 1,629 2,479 20 681 8,366 10,102 1,454 933 4,851 5,281 890 340 4,178 148 Independ- ent. Nnm- Ijer of nr- g&ni- za- tiODS. 752 Num- ber of mem- bers. Total. Num- ber of or- gani- za- tions. 1 3 15 2 2 9 2 43 3 16 2 10 2 3 18 2 4 176,540 85 665 12,698 3,725 3,171 500 26 1 7 11 2 5 2 2 77 1,989 247,0731 66152,960 509122,164, 1,034 834 6,226 194 80 95 1,082 18 4,235 170 694 352 1,782 475 60 3,946 140 94 1,021 82 2,286 399 283 951 1,050 610 200 Num- ber of mem- bers. Total number em- ployed, acwrd- ing to census of 1901. 1,303 279,513 5,693.080 15, 200 147 14 244 13 35 103 66 542 33 167 8 26 13 95 149 36 69 34 156 34 69 108 5 58 48 30 27 24 99 63 426 145 955 10, 847 8,071 47,371 971 3,517 13,911 4.94st diversified is the activity of the chambers of labor, while the federa- tions are more specialized organizations for collective bargainmg. The chambers of labor may, and do to some extent, undertake any- thing that may further the interests of labor, such as employment bureaus, legislative agitation, educational work, publication of trade papers, arbitration courts between employers and employees, etc. Thus, m 1908, 39 chambers had employment offices, 65 had legal-aid bureaus, 30 employed physicians, 19 had schools, and 44 had libraries. UNEMPLOYMENT BELIEF BY LABOB UNIONS. In a report concerning unemployment insurance recently presented to the Chamber of Deputies the estimate is made that out of half a million of mdustrial workmen belongmg to organizations onlv about 50,000 are protected by unemployment insurance. («) It is explained that the labor organizations m Italy mostly follow the policy of low membership dues, and are therefore often unable to undertake any form of insurance. The largest national labor organi- zation to carry on unemployment insurance is the Italian federation of hat makers, with 36 branches and 5,896 members, which has a federal unemployment and traveling fund. Unemployment benefits are granted under the following conditions: At least one year pre- vious membership; conclusive proof of the involuntary nature of the unemployment and absence of any other remunerative work; and duration of unemployment for at least one week. The benefit is given for not over 12 weeks, and is very small amounting to only 2 lire (38.6 cents) per week during the first three weeks, 3 lire (57.9 cents) per week during the followmg three weeks, 4.50 lire (86.9 cents) for the next four weeks, and 6 lire ($1,158) per week for the last two weeks. These are the benefits for the first (higher) group of members; for the second (lower) group they are only 1 lira (19.3 cents), 1.5 Ih-e (29 cents), 3 lire (57.9 cents), and 4.5 lire (86.9 cents) per week. The means to pay these benefits are obtamed by contributions of members, which contributions are com- pulsory. The membership dues are 10 centesimi (1.93 cents) and 5 centesuni (0.97 cents) per week for the two groups of members, and out of these dues 4 centesimi (0.77 cents) and 2 centesimi (0.39 cents), respectively, are deducted for unemployment msurance. In addi- tion to these unemployment benefits the federation pavs travelincr expenses. Durmg the year 1908 the federation distributed 2,980 lire ($576.30) for unemployment benefits and 1,914 lu-e ($369.40) in traveli ng expenses, makin g a total of 4,900 lu-e ($945.70). « BoUettino dell' Ufficio del Lavoro, Vol. XIII, 1910, pp. 1313-1334. 1910 REPORT OF THE COMMISSIONER OF LABOR. J The Italian glass workers' federation also grants unemployment relief in the following three cases: At the close of the season, if within two months work is not resumed in the same establishment or in the same locality; in case of discharge because of the recognized necessity to reduce the number of persons employed; and, finally, when the workman's leaving becomes necessary for no fault of his. The bene- fits are paid out of the general fund of the association. In the lithographers' federation the granting of unemployment benefits is made compulsory for the individual sections, under the supervision of the central committee; but insurance under this sys- tem is optional with the members. A member so insured is required to pay a premium of 10 centesimi (2 cents) per week and is entitled to relief in case of unemployment for lac^k of labor or any other cause for which he is not responsible, except sickness. The unemj)loym(^nt benefit is from 1 to 2 lire (19.3 cents to 38.6 cents) per day. l^he rules of this form of relief are very strict, requiring appearance at the headquarters of the section at least three times a week, and willing- ness to accept any employment the local section committee might offer him. The federation of printers leaves the organization of the unemploy- ment relief to its individual sections, which number 125. In 1008 62,339.45 lire ($12,031.51) were granted for 40,153 days of unem- ployment in addition to 9,709.80 lire ($1,873.99) for traveling expen- ses, making a total of 72,049.25 lire ($13,905.50). The study of unemployment relief, published by the labor bureau of the Milan Humanitarian Society in 1905, con tarns an analysis of the various forms of unemployment relief given by the Milan labor organizations at that time, i. e., before the organization of (he unemployment fund by that society. Of the 115 organizations inscribed in 1903 in the Milan chambers of labor, 41 had some provi- sion concerning unemployment benefits, and 32 were actually fur- nishing such. Unemj)loyment benefits were most frequent among the employees of metallurgical and mechanical establishments. Out of 17 organizations of such employees, only 2 did not furnish some relief. Of 14 printing trades organizations, 8 furnished unemploy- ment relief. The methods and the conditions of payment of such relief are naturally subject to the widest variations, these organizations being entirely voluntary. The contributions may be uniform for all mem- bers or proportionate to the age groups, a smaller contribution being exacted from the employees under 18 years of age, or different for master mechanics and apprentices, or the contributions may be pro- portionate to the salary. The usual amount of contribution is about 10 to 15 centesimi (1.9 cents to 2.9 cents) per week, and the usual amour t of unemployment benefit about 1 lira (19 C(;nts) per day. CHAPTER VII. workmen's INSURANCE IN ITALY. 1911 « The amounts of benefits vary considerably and may depend upon the length of membership, and various regulations exist for limiting the length of time during which unemployment benefits may be paid. This period is usually limited to about six or eight weeks, aft^r whicli some organizations grant half the benefits for another period of the same length. In the followmg table are shown the principal statis- tics of contributions and benefits of the unemployment insurance organizations in Milan : 67725°— VOL 2—11 ^27 1912 REPORT OF THE COMMISSIONER OF LABOR. CONTRIBUTIONS AND BENEFITS IN UNEMPLOYMENT [Source: Contro la Dlsoccupazione. Occupation. Members' contributions per week (cents). Amount of unemployment benefits i^er day (cents). , < Setters-up 1.9. 3.9. and 5 8 (a) 9.7, 14.S, and 19.3 14 5 19 3 and 29 Armature winders, etc 2.9,4.8, andC.8(o) Bronze workers Braziers 1.0, 1.9, and 2.9 9.7, 20. J. and 39.0 Chiseiers 2.9 and 3.9 (a) 19.3 and 29.0 29 3H 6 and 60 2 Compositors 4.8 Blacksmiths 1.0 and 1.9 9 7 and 19 3 Working women in printing 2.9 15.4. 30 9 Ty|)e founders 2.9 Metal founders 1.0, 1.9, and 2.9 9 7 19 3 and 'M Iron works 1.0, 1.9. and 2.9 9 7 20 ,1 and 24 Printers 4.8 ll.G, 17.4, and 23.2(e) 1.9, 3.9, and 5.8 (a) 29.0, 38 6, and 50.2 (d) 19.3. 24 Land 29.0 Carvers Instrument makers 9.7, li 5. and 19 3 Tinsmiths, etc 2.9 and 3.9 19.3 ami 29 Photographers' helpers 2.9 and 4.8 14.5 and 19.3 Metal cornice workers Mechanicians Fine mechanical workers 1.9, 2.9, and 3.9 (a) 1.9 and 4.8(1). 2.9 and 4.8 (a) . 9.7, 19.3, and 29.0 9.7a)ul 19.3 11.6 and 19.3 19 3 Lithographers 3.9, 7.7, anc 9.7 (») B utchers 21.2 (e) 9.7 Modelers 1.9, 2.9, and 3.9.... 19 3 20 and 38 fi Goldsmiths, etc 7.7andll.6(/) 14.5 and 24.1 Workers in skin and leather 5.8 and 11.6 (<) 19 3 24 1 and 29 Polishers 1.9 19 3 Plimibers, etc 1.9 and 2.9 9.7 and 19.3 19.3 and 29.0 29.0. . Saddlers and trunk makers Stereotypers and gal vanizers 9.7 Dyers, stamners, etc 2.9 and 3.9. . 96.5 and 135.1 (ft) 9.7, 19.3, and 29.0 4.8,9.7, 14.5, and 19.3.. 19.3, 27.0, and 33.8 Metal turners 1.9, 2.9, 4.8, andC 8 Metal chiseiers, etc 1.9, 2.9, 3.9, and 5 8 Zinc etchers 1.6, 1.9, and 2.9 Total o These amounts include dues for strike benefits. b Not reported. « During enture period of unemployment. d According to length of meml)ership. « I'er month. CHAPTER Vn. workmen's INSURANCE IN ITALY. 1913 INSURANCE ORGANIZATIONS IN MILAN, BY OCCUPATIONS. 1902. Pubblicazloni della Societa Umanitaria.] Duration of payment of un- employment benefits. Full benefits. 8 weeks 8 weeks 6 weelts 60 days 8 weeks 6 weeks 6 to 12 weeks (d) .' 8 weeks («») 60 days 8 weeks 10 weeks 8 weeks (^) 13 weeks Sweeks 8 weeks 60 days 6 weeks 6 weeks 24,30,and42days Sweeks 6 weeks 2 months 6weelcs 3 months 8 weelffi 8 weeks 6 weeks Half benefits. Number of members. 8 weeks . (6) Sweeks Sweeks 4 weeks . Sweeks. 8 weeks. («-) 6 weeks. 8 weeks . Sweeks . 8 weeks . 6 weeks. 950 109 300 233 101 898 825 297 119 1,200 190 750 138 75 210 41 95 117 230 527 230 75 360 987 240 108 170 60 666 1,400 138 144 Number unem- ployed during year. Days for which benefits were paid during year. Numbw. 84 25 1 24 6 145 5 18 5 25 38 103 47 Average per member. 2,532 329 96 349 230 6,959 246 221 66 697 1,525 3,229 264 2.7 3.0 3 15 2.3 7.7 .3 .7 .6 .6 8.0 4.3 L9 Average per member receiving benefits. Amount of benefits paid during year. 11,983 13 10 48 10 14 10 48 15 3 14 135 42 20 867 351 392 1,716 295 229 256 506 175 60 385 4,847 1.0 30.1 13.2 96.0 14.5 38.3 48.0 49.2 12.2 13.2 27.9 40.1 31.3 5.6 Total. Average per bene- ficiary. 333 «■ 25,629 3.0 L7 3.3 1.3 3.1 .7 .5 .7 LO .6 3.5 42.0 27.0 39.2 35.8 29.5 16.4 25.6 10.5 11.7 20.0 27.5 35.9 S390.33 58.86 13.90 83.83 66.58 1,993.16 38.21 36.17 23.62 134. 52 373.90 895.33 67. 79 $4.65 2.35 13.90 3.49 11.10 13.75 7.64 2.01 4.72 5.38 9 84 8.69 L44 &11 2.3 2.1 16.7 29.6 64.85 64.15 331.19 28.47 67.55 6L76 115.37 32.62 19.11 59.44 957.33 8a96 8.11 4.99 6.42 6.90 2.85 4.83 6.18 2 40 2.17 a 37 4.25 7.09 4.05 6,067.13 7.00 * Per week. i This total is not the correct sum of the items; the figures are given as shown in the original leporL 1914 EEPOET OF THE COMMISSIONER OF LABOR. I The two labor organizations which have granted unemployment insurance for the longest time are the unions of compositors and print- ers. In the following table are given the main results of their oper- ations; for the compositors, for the period 1877 to 1901, and for the l)rinters, for 1880 to 1902: RESULTS OF UNEMPLOYMENT INSURANCE IN UNIONS OF COMPOSITORS AND OF PRINTERS IN MILAN FOR A SERIES OF YEARS. [Source: Contro la Disoccupazione. Pubblicazioni della Societk rinanitaria.] Item. Contributions: Ordinary Extraordinary Total Average per member per year Benefits paid: Ordinary Extraordinary Total A vers^e per member per year Average per year ""ays of unemployment: Number for which benefits were paid Average per year A verage per member per year Members: Total number for all years Number receiving benefits Per cent receivinc: benefits Compositors: 1X77 to 1901. Printers: 18H0 to 1902. $23,169.81 $1,599.55 $9,344.12 $1,002.32 $24,769.36 $1.31 $10,346.44 $1.26 $23,61«.88 $1,028.61 $6,672.09 $73. 48 $24,645.49 $1.30 $985. 82 $0,745.57 $0.82 $293.29 71.799 2,872 3.8 18,929 1.182 ().24 24,573 1,0<)8 3.0 8,208 921 11.26 PEIVATE AND VOLUNTABY UNEMPLOYMENT INSTIBANCE. MUTUAL BENEFIT SOCIETIES. In a small way the mutual benefit societies (desciibed in the chap- ter on sickness insurance) have made some effort to meet the prob- lem of unemployment relief for over 25 years. According to the statistical reports of these mutual benefit societies, in 1885 there were 184 societies which included unemployment relief among their various activities, in 1895 there were 234, and in 1904, 417, or 6.2 per cent of all. No data exist as to the amount of unemployment relief thus granted, except for 1885, when it amounted to 32,787 lire ($6,328). The peculiar conditions of the unemployment insurance problem require special organizations for dealing with them, and witldn the last decade various special unemployment insurance societies have been founded in Italy in an experimental way. Though the extent of the activity of these societies is small, they are nevertheless of importance because the entire subject of unemployment insurance is as yet in an experimental stage, and the best method of treating this condition still remains to be determined. A brief account of them follows. CHAPTER VII. workmen's INSURANCE IN ITALY. 1915 SPECIAL UNEMPLOYMENT INSURANCE SOCIETIES. Bologna.— As early as 1896 the director of the Bologna Savings Bank proposed a new type of personal accounts for the specific pur- pose of providing for involuntary unemployment, and for the benefit of these accounts the interest from a special fund of 200,000 Hre ($38,600) was to be assigned. Personal account books could be taken out by wage-earners over 14 years of age, born and Hving in Bologna, in the trades of mason, carpenter, blacksmith, roofer, white washer, marble worker, tinsmith] glass worker, and plasterer. Each depositor was required to deposit within a certain time 5 Hre or 3 lire (97 cents or 58 cents), according to whether he was of age or not. After the time for making the deposits had elapsed, the depositors, if deprived of employment without any fault of theirs, were entitled to receive a daily benefit of 60 centesimi (12 cents) for minors and 1 lira (19 cents) for persons of age. This benefit was continued for not over 40 days, beginning with the sixth day of unemployment, and was payable every 3 days. If the interest on the special fund should become exhausted the depositors were to be entitled to receive the amounts of their deposits and interest, the total grant not to exceed 40 hre ($7.72). Unem- ployment due to sickness or accidents was excluded, other agencies existing for these forms of rehef. The depositor was required to furnish a certificate from his em- ployer and from 4 wage-earners not unemployed, in the same or similar branches of industry. The heirs of an insured person who died during the insurance period without having received any benefits received the deposits and inter- est. The same rule was to apply if the bank decided to discontinue the experiment. This plan enabled the insured to purchase for 3 or 5 lire (58 cents or 97 cents) an insurance of 40 days benefits, or a total of 24 or 40 hre ($4.63 or $7.72), but, on the other hand, there was the possibihty of losing the deposited amount if the person insured did not suffer from unemployment within the period. This was the result of the appU- cation of the ordinary principle of mutual insurance. But this prm- ciple of mutuahty was not suflaciently developed to overcome the fear of losing the deposit, and the plan never achieved any great popularity. ' ^ Buring the first year of the operation of this plan only 27 workere availed themselves of this opportunity, their deposits together with interest accrued amounting to 117.59 lire ($22.69), while the amount or benefits granted reached 660.40 hre ($127.46). 1916 REPORT OF THE COMMISSIONER OF LABOR. In the second year of the experiment, the masons, roofers, white washers, and plasterers were excluded because for them the certainty of unemployment existed. It was argued that the theory of insur- ance presupposed protection only against an unexpected or uncer- tain emergency; then the insurance premium corresponds to the degree of probability of the emergency arising; but if the emergency is sure to arise, insurance appears to be unnecessary. Other trades were added in the place of those excluded, namely, workers in am- munition factories, shoemakers, hat makers, tanners, carriage makers, leather workers, bakers, pewterere, horseshoers, brass workers, bridge workers, saddlers, stonecutters, chisclers, dyers, turners, and glaziers. Other changes also were introduced. It was thought desirable to pre- fer for insurance such persons as have shown a tendency to some providence, and therefore the right to receive benefits was limited to persons having a savings-deposit book for at least one year. Persons keeping steady employment with the same employer were thought worthy of encouragement, as against workmen constantly changing one employer for another, and therefore the right to receive benefits was limited to persons who had worked for at least one year for the same employer. The same limits of the benefits remained, i. e., 40 days and a total of either 24 or 40 lire ($4.63 oi- $7.72). The re- quired evidence of unemployment was simplified. In the year 1898-99 further modifications were introduced. The required period of ownership of a savings account was reduced from 1 year to 3 months and subsequently to one month. The required period of continuous employment was also reduced from 1 year to 6 months. Women working in the specified industries were also admitted to this form of insurance, and the list of industries was extended to include the employees of military arsenals, tobacco manufacturing, and the manufactures of mineral and sparkling waters. Private employees and the management of government estabhshments endeavored to stimulate this form of insurance by special prizes and privileges. But all these modifications and changes in regulations failed to arouse the interest of workmen in this insti- tution, and the possibility of losing the 5 hre (97 cents) of premium proved an effective barrier against any considerable- extension of the system. According to the report of the directors, the main cause of failure was the insurance principle itself, as the danger of protracted unemployment was not great in Bologna, exce))t in the building trades, to which the insurance principle was claimed to be inappli- cable. As a result the insurance i)rinciple was entirely abandoned and in its place was substituted a system of indiyidual savings for a definite purpose, with a subsidy to such savings added mainly to promote the habit of saving. New regulations were tlicrefore pre- pared in 1901. The exclusion of the building trades was discon- CHAPTER VII. WORKMEN ^S INSURANCE IN ITALY. 1917 tinned, since only by the difficulties of apphcation of the insurance principle was this exclusion justified. The basis of the new regulations was individual accumulations by means of deposits in the savings bank, upon which the bank was to pay interest. The interest upon the fund of 200,000 lire (S38,G00) was to be distributed among this group of depositor proportionately to their deposits during the current year, but not to exceed the actual amount of deposits, or 40 lire ($7.72), to one person within any one year. These additional credits were to be interest bearing like the original deposits. The essential features making these saving deposits a form of unemployment rehef are the rules that with- drawals from the account may be made only if proof is furnished that the depositor is at the time unemployed without any fault of his and that the withdrawals must not exceed 1.50 hre (29 cents) per day. These withdrawals must be made by the depositor in person, and if he, while out of work, endeavors to make withdrawals through another person without giving a satisfactory reason for such action he loses the credits already given him, mth the interest accrued, and the additional credits due during the year. The additional credits and the interest accrued on these remain on the account of the depositor for the following year if not used during the current year. In case of death of the insured these credits and the interest accrued, if not used by the depositor, revert to the fund, while the contributions made by the insured and interest on these contributions revert to the heirs. Thus, a workman partici- pating in tliis plan of unemployment relief does not run any risk of losing the savings made. The new plan of 1901 reduced itself to gratuitous contributions by the bank, without any risk on the part of the depositor. This proved more popular, and the number of depos- itors grew so large that it soon became doubtful whether it would be possible to pay the maximum bonus of 40 lire ($7.72) allowed by the regulation. As this maximum Hmit was likely to give rise to an impression that such bonuses would actually be paid, it was ehmi- nated from the regulation, and the determination of the limit was left entirely to an administrative council. In the same year persons under 18 years of age were excluded, and to persons from 18 to 21 years the daily compensation was limited to 1 lira (19 cents), because it was feared that in case the daily benefit was higher than the earnings of the young pei-sons the system of unemployment relief might prove a factor for the encouragement of lazmess and unemployment. Later it was also decided to exclude lemale wage-earners because of the difficulty experienced in estab- lishmg the lack of employment in lines of female work. Toward the end of 1901 the influx of depositors was so great that it was found necessary to increase the fund by another 100,000 hre ($19,300) and 1918 BEPORT OF THE COMMISSIONER OF 1.AB0R. I I to limit the members to residents not of the province, but of the city of Bologna. The increase of depositors under this form continued, however, and by 1903 it became evident that a further reduction of the bonuses below an amount which would be at all adequate was necessary unless further restrictions were placed in the classes of persons admitted. All wage-workers under age were therefore excluded under the assumption that they had lighter obligations and often had the chance of obtaining reUef from their homes. Persons over 65 years of age were also excluded because at that age unem- ployment assumes the nature of invaUdity and must be handled as such. Notwithstanding these limits the cost of this system grew very rapidly, and soon various abuses asserted themselves, such as deception concerning conditions of unemployment, voluntary unem- ployment, fraudulent deposits through loans so as to increase the available sum of benefits. The detection of these fraudulent prac- tices became a very difficult matter. Against the commonest form of fraud, that of an employed wage-worker receiving unemployment benefits, the remedy was proposed of demanding ihe daily apj)earance of those claiming benefits so as to establish the fact of unemployment. It was even suggested that the unemployed appear twice a day, since it was quite apparent that no employed worker could absent himself twice a day from his shop and keep his employment. But the con- sideration of the discomfort to the unemployed by doubUng trips in all kinds of weather, sometimes over great distances, with the temp- tation to spend, prevailed against this plan. The measures taken for prevention of fraud were not altogether satisfactory, and in 1903 the director was forced to announce at a meeting of the unemployed that unless some method was devised to prevent fraud this activity of the bank would have to be discontinued. As a result a commission of labor delegates was elected, consisting of five members. The commission brought in the following suggestions : That the subsidized unemployed be required to assemble daily, that they remain there for 2 hours (1 to 3 p. m.), the doors being closed after the appointed hour. This plan was not adopted because it was feared that it would cause too much complaint and irritation. The estabUshment of a vigilance committee was also suggested, but objection was found to it on account of the hostility to which the members of such committee would be exposed. It proved difficult to suggest a way to counteract the other frauds mentioned. Altogether there were 691 persons registered under this form of insurance or rehef in 1903. Their deposits and other credits amounted on December 31, 1903, to 31,570.87 lire ($6,093.18). After the win- ter unemployment, i. e., on March 31, they equaled 20,252.64 fire CHAPTER Vn. workmen's INSURANCE IN ITALY. 1919 ($3,908.76) and on May 31, 20,665.86 lire ($3,988.51). The fund from which interest is used to pay the bonuses to the persons insured equaled 356,300 lire ($68,765.90). There evidently were two well-defined periods in the history of this experiment. As an insurance scheme it was a complete failure because the classes concerned refused to take any interest in the matter. In the latter stage it became a system of subsidizing individual savings and rapidly became popular, but led to various forms of mahngery and fraud. It has also been pointed out that because of the total absence of any connection between this sys- tem of rehef and the institutions for finding employment it had no influence on the reduction of the unemployment period. The total number of savings books issued by the Bologna Savings Bank under the form of unemployment insurance up to October 3^, 1904, was 865, of which 173 became extinct, leaving active accounts on that date of 692. By occupation, these owners of books were distributed as follows: NUMBER OF' SAVINGS BOOKS ISSUED FOR UNEMPLOYMENT INSURANCE BY THE BOLOGNA SAVINGS BANK UP TO OCTOBER 31, 1904, BY OCCUPATIONS. [Source: BoUettino dell' Ufficio del Lavoro, Vol. IV, 1905.J Occupation. Number of savings books — Occupation. Number of savings books Issued. Extinct. Current. 1 Issued. Extinct. 1 Current. Masons 690 61 22 17 14 129 21 6 1 4 561 40 16 1 16 10 Clampnt^rc 13 48 4 8 White washers Mechanics Another 9 m Laborers Varnishers Total 865 173 692 This form of insurance was evidently used almost exclusively by the building trades, for whom some period of unemployment is certain. According to the regulations, the distribution of the bonuses to the accounts was made on December 31, and on the basis of the deposits made during the twelve months ending on October 31 preceding. In the following table is shown the amount of deposits for the year November, 1903, to October, 1904, by months, and it appears quite evident that the deposits did not rise to any considerable amount until toward the end of the year. 1920 EEPORT OF THE COMMISSTOIN^ER OF LABOR. NUMBER AND AMOUNT OF DEPOSITS FOR UNEMPLOYMENT INSURANCE IN THE BOLOGNA SAVINGS BANK FOR THE FISCAL YEAR ENDING OCTOBER 31, 1904. • [Source: Bollettino dell' Ufficio del Lavoro, Vol. IV, 1905.) Year and month. 1903. November December 1904. January February March April Deposits. Number. 14 3 1 1 17 85 Amount. $12. 35 4.25 1.93 .29 5.60 62.78 Year and mouth. i 904— Concluded . May June July August September October Total Deposits. Number. 223 335 454 415 397 417 2,362 Amount. 1108. 30 261.71 372. 70 350.68 343. 27 358. 46 1,932.32 The total amount credited to these 692 accounts hi October, 1903, was 18,931.02 Hre ($3,653.69), so that the total amount deposited on October 31, 1904, reached the sum of 28,943.22 Ure ($5,586.03). The amount of bonuses distributed was 7,440 lire ($1,435.92), only 328 persons quahfying for such bonuses. The total amount with- drawn for unemployment reHef during the following eight months, November, 1904, to June, 1905, was 16,290 Hre ($3,143.97), distrib- uted, by months, as follows: NUMBER OF DAYS OF UNEMPLOYMENT AND AMOUNT V/lTHDRAWN FROM THE BOLOGNA SAVINGS BANK FOR UNEMPLOYMENT RELIEF FOR THE EIGHT MONTHS ENDING JUNE 30, 1905. [Source: Bollettino dell' Ufficio del Lavoro, Vol. IV, 1905.) Year and month. 1904. November December 1905. January February Number of days of unem- ployment. 74 545 3,956 4,192 Amount with- drawn. $2L42 157. 78 1,145.26 1,213.66 Year and month. 1905— Concluded Manh April Mas Jim Total Number of days of unem- ployment. 1,732 187 146 28 10,800 Amount v/ilh- drawn. 1.501.41 54.14 42.27 8.11 3, 143. 97 The entire activity of this form of insurance might be designated as an effort to encourage the saving of summer earnings for use dur- ing the winter unemployment. Some such process is inevitable in seasonable trades, like the building trades, to which almost all the beneficiaries of this plan belong. In the case of the liologna Savings Bank a very high bonus of over 50 per cent is given to the persons practicing this form of saving. Notwitlistanding the modest limits of this activity, it was again felt necessary, in 1905, to ''proceed cautiously," as the director of the bank states in his last report, («) so as to prevent an undue pressure o Bollettino dell 'Ufficio del Lavoro, Vol. 'XIV, Oct., 1910, pp. 697-702. - 1 CHAPTER VII. workmen's INSURANCE IN ITALY. 1921 upon the resources of the bank. An entirely new set of regulations for this part of the activity of the savings bank was therefore prepared in 1905 and went into effect in the beginning of 1906. It embodied mainly the foUowing two new principles: First, that only those deposi- tors who actually suffer from unemployment participate m the distri- bution of the interest on the endowment fund. Tliis was claimed to be more logical than the distribution of the interest among all the depositors. Secondly, right was given to withdraw the deposits after the period of ''insurance" had elapsed. The regulations adopted in 1905, and still in force, provide for the following system of unemployment reHef: The Bologna Savings Bank has a special fund of 300,000 lire ($57,900) for unemployment relief of such persons as are wiUing to make sa^gs for the lean months in times when there is enough work. The bene- fits of this fund are open only to men between 21 and 65 years of age who live and work in Bologna, who are employed in manual labor, and who work for hire, being employed on a daily or weekly wage. In order to participate in these benefits the men must obtain speciaf unem- ployment deposit books. Each person may possess only one such book. A very important provision is the rule which gives the admin- istration of the fund the right to determine each year how many such unemployment deposit books shall be issued. Applications for these books must be made within a certam time of the year, namely, between March 1 and May 31, and are acted on in the order in which they have been made. The deposits must be made out of the personal earnings of the depositor and must not exceed 5 lire (96.5 cents) per week. These deposits draw the ordinary rate of interest on the same conditions as all other deposits in the savings bank. In addition to this normal rate of interest, however, these deposits entitle the depositor to a participation in the interest of the unemployment fund, there bein*' two grades of benefits. The first grade consists of depositors who deposited 40 lire ($7.72) or over, and for them, according to the lan- guage of the regulations, "1 lira (19 cents) is reserved for every lira deposited, but not over 40 lire ($7.72);" in other words, to all of the depositors of the first grade a credit of 40 lire ($7.72) is reserved. The second grade consists of depositors who have deposited less than 10 lire ($1.93); for them one-half of a lu-a is reserved for each lu-a deposited up to 20 hre ($3.86). Both the deposits and these reservations of benefits are for the purpose of unemployment rehef . Moreover, the savings of one year are intended for relief during the following year. During the cur- rent year, therefore, in which the deposits have been made, they are not subject to withdrawal. But during the next year they may withdraw such deposits, together with the share of the benefits on EEPORT OF THE COMMISSIONER OF LABOE. 1922 .>^^-— f „f v.pin t^y w th ^^^^^^ ^^^ without such proof, they lose a I r^M t ^^^ ^^^^^^ ^^^^ ployment withdrawals «i"/\^°* ^^'Jf^^ ^i^uy allowance of 1.50 hre ^le such unemployments last- This ^f ^j of the benefits consists partly of their o';^^ .^^IP^/J, JeposUois of the first grade, reserved, in the foUowmg 'atio-J-or tu P ^^^^ ^^^^ allowance i. e., those who have accumulated 40 hre ^^ ^^^.^ ^^ ^^^^^.^^ ^^^^ of 1.50 lire (29 cents) consists of 0.75 In ^ ^^ ^^ ^.^^ ^^^_^2) of 0.75 lira of the reserved ^'"^^^'l' ~^^,^uyr^ of the second grade the latter is exhausted, and f°; ^^^/^l^^ii,^ (9.7 cents) from the 1 lira (19 cents) of the deposits, and 5o ur reserves up to the lunit of 20 hre ($3.86). ^^^ ^^^^^^ In order to obtam these benefits the aep ^^ ^^^^^^^ ^^ present themselves in P™' ^J% ; benefits may, however, be requked proof of ^^^^^^^^"^^'^JXii Bologna for other locali- giL even to such ^P^^^^^.^w^^^^^^^^ in their search, ^^rrt'^^ -— --^ ^' ^"" "^- employment. _ f ^j^^ Bologna Savings Bank A complete ^''^^"J^*/ ^J^tj^^ a^ Ji„Lstration, covering the years was recently pubhshed »>y ^f 7"? ,^^ j,ew regulations had the 1904 to 1910. The account -^-'-J^;.^; J^rfng the first year of effect of restricting the deposits, espec laUy S, ^^^^^ ^^^^ ^^ he full application of the new rules ..e 1907.^^^^^ ^,^^^ ^ the total amount of benefits paid out bee .^^ ^^^^_ ^^^ ^ lire ($2,289.55) -J^^Vt'othet^lepols has materially declined, proportion of the b;"«fit. t*> riie *o*al p .^ ^^^^ ^^ ^j ^ ^^^ from 66.6 per cent ^'^^^04 to 26J P .^^^^^^^^j_ ^^ „ ^e ment fund at the same t«^^ ^^ °f ^" succeeded in preventmg the admitted that the new regulaU<>^ have s ^^^^ ^^^ threatening danger oV''''''V„ be admitted to participation in the the maximum limit of Pf^^"- ^° ^^^^^^^^^^ and for the following benefits was determined ^Y the bank at ' j^ therefore years at 750. The whole -t-y "^^^ 'J^^, .uffieulties in the Lamly interesting as an f l;;2f ^^^^^^S i, based upon the pnn- way of an unemployment relief P^*" yi voluntary savmg Tipl of subsidized Pf;;-rier[ttTi? character building, as was evidently selected fo'^J.^J^f ^^ a combmation of econom c being the best method o^ -^ef th ^^^^^^^ ,^,,^ the subsidies made and educational effcc*^' ™ "^ „„iess the work was surrounded by CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1923 OPERATIONS OF THE UNEMPLOYMENT FUND OF THE BOLOGNA SAVINGS B VVK 1904 TO 1910. »AAK, [.Source: BoUettlno dell 'Ufficio del Lavoro, Vol. XIV, 1910.] Number of deposit books. Year. On Jan- uary 1. 1904. 1905. 1906. 1907. 1908. 1909., 1910. . 690 680 752 732 729 752 795 Dis- Is- con- sued tin- dur- ued ing dur- year. ing jyear. 55 05 126- 51 35 55 94 97 99 76 96 5.3 C35 C43 At end of year. Total cred- its on books Janu- ary 1. Deposits during year. Enti- titled to partici- pate in Benefits. Not enti- tled to par- tici- pate in bene- fiits. 680 752 732 729 752 795 C787 $0,08.3.53 6.935.94 8, 402. 75 6.624.61 4.257.95 4, 734. 49 4,923.39 Total. Inter- est on de- pos- its. Benefits distrib- uted from en- dow- ment fund, (a) j Total deposits, interest, and benefits. Amount on books at end of year. Total. ?1, 917. 841.. 2, 449. 54 S96. 35 2, 444. 23 2,258.83 13.86 2,215.69 10.95 2,482.08 1.21 Year. Amount. of endow- ment fund. $1,917.84 2, 545. 89 2, 444. 23 2, 272. 69 2,226.64 2, 48:3. 29 c 897. 78 Aver- age per de- pos- itor. $64. 152. 167. 94. 112. 116. C109. I 94 $1,657 37 2,289. 884. 497. 878. 78; 3, 478. 45 e 376. 78 cl, 384. 36 62 89 34! 38 80 29 $3, 640. 07 $6. 935 55 4,987.81; 8,402 2.61L85; 6.624. 3.2.51.66! 4,257. 2.8.36.15! 4.734. 4.923. 4,037. .08 17 94 $10. 20 75 11.17 9.05 61 96' 491 39 65; 5.84 6.30 6.19 5.13 1904.. 1905.. 1906.. 1907.. 1908.. 1909.. 1910. . $07,347.00 68, 804. 50 70.039.70 70,618.70 71,101.20 71,101.20 71,101.20 Mem- bers in- scribed on rolls during pre- ceding year for partic- ipation in ben- efits. Members ad- mitted. First grade. Second grade. Mem- bers sus- pend- ed. Withdrawals. 522 .333 372 450 444 564 552 81 183 286 296 324 399 400 Benefits. Amount. Pc-r cent of total. Deposits. Amount. Per cent of total. Total. 438 145 71! 46 110 137 142 3 5 15 108 10 28 10 $1,85,5.49 1.657.29 2,289.55 884.08 497. 17 878. 78 c 376. 78 Days of unem- ploy- ment. 66. 6' 47. ij 52.2 15. 7| 21.1 26.7 C15.3; $932. 17 1,863.711 2. 100. 45 4.734.23, 1.862.441 2. 410. 77i « 2, 080. 31: 33.4 52.9 47.8 84.3 78.9 73. 3 C84. 7 $2. 787. 66 3,521.00 4.390.00 5,618.31 2,350.61 3,289.55 "2, 463. 09 6,107 6. 194 3,453 5.977 <-2,oS2 &"--««-S-^^^^ pajTnent of unemploj-ment c ?o"rXK„^'jrtX' omeTo^"' "" "-'""""o- »' "--flte was made this year. «* Not reported. ^ VENicE.--The unemployed workmen's benefit society of Venice (La SocM Prev^nza per gli Operai Disoccupaii in VeJzi^ was estal^ hsled by some pnvate persons with a charitable purpose in 1901 and legally incorporated by tlie royal decree of June 30 1901 ' The purposes of this society are to facilitate as far as possible the p lacing of unemp eyed workmen, to assist them with^empori^ ub Idles m case of involuntaiy unemployment, and to assist Ln S settlement of disputes between employei^ and employees. The first purpose is met by gathering all available information concernmg the demands for help, which information is fumXd to persons interested, and occasionally also by furnishing traveling expenses to those who have obtained employment out of towi 1924 EEPORT OF THE COMMISSIONER OF LABOR. The provision of the by-laws requiring the society to act iis a con- ciHator in disputes between employers and employees has remained a dead letter, the main function being that of granting aid to unem- ployed persons. Although originally a private organization, the mu- nicipahty of Venice went to its aid. In 1904 the amount contributed by the municipaUty of Venice was 10,000 lire ($1,930) , by the province of Venice, 1,000 lire ($193), and the contributions of honoiary mem- bers and patrons amounted to about 2,000 lire ($386). The contributions of the wage-workers insured during the first three years of the activity of the society was 40 centesimi (8 cents) per month, but in 1904-5 were increased to 1 lira (19 cents) per month by the executive council of the society. This increase of contributions was partly offset by an increase of the benefits from 1.25 lire (24 cents) to 1.50 lire (29 cents) per day to married workmen and to widows with more than two children. But the main purpose of the increase is admitted by the administration to have been to check the rapid growth in the number of insured, which became alarming in view of the absence of all limitations as to the duration of the benefits and the cheapness of the rates. The activity of this society is admitted by its administration to be in the nature of an experiment, requiring further study, especially for the purpose of adjusting the finances of the society. Its essential difficulty is evidently to be found in the fact that it is primarily a disguised form of charity, a very small share of the revenue being derived from the contributions of the insured. The activity of the society for the fiscal years 1902-3 and 1903-4 is shown in the following table: NUMBER OF MEMBERS AND NUMBER, AMOUNT, AND AVERAGE OF BENEFITS PAID BY THE UNEMPLOYED WORKMEN'S BENEFIT SOCIETY OF VENICE, 1902^-3 AND 1903-4, BY INDUSTRIES. [Source: BoUetino dell' Ufficio del Lavoro, Vol. II, 1904.1 Industry. Metallurgy (a) Shipbuilciiag, etc Building trades Woodworking Painters, decorators, etc Unskilled laborers and others not specified Total. 19()2-3. Num- ber of mem- bers. 190 34 91 15 98 17 445 Num- ber re- ceiv- ing bene- fits. 74 25 32 6 70 8 215 Per cent re- ceiv- ing bene- fits. 38.9 73.5 35.2 40.0 71.4 47.1 48.3 Total benefits. $572.33 229.96 306. 87 ♦)0.50 670.58 84.44 1,924.68 Aver- age bene- fits per beno- flcl- ary. 1903-4. 17.73 9.20 y. ow 10.08 9.58 10.56 Num- ber of mem- bers. 8.96 151 63 79 16 119 24 452 Niun- ber re- ceiv- ing bene- fits. 95 68 45 7 100 24 329 Per cent re- ceiv- ing bene- fits. 62.9 92.1 57.0 43.8 84.0 100.0 72.8 Total benefits. $894.46 676. 45 476. 42 91.19 1,015.95 266.58 3,321.0 6 Aver- age bene- fits per bene- fici- ary. $9.42 9.94 10.59 13.03 10.16 11.11 10.09 a Including only iron and steel manufacturing in 1903-4. CHAPTEB VII.— WORKMEN 'S INSURANCE IN ITALY. 1925 Milan -Perhaps the most ambitious effort in the line of unem- ployment relief ,s that made by the Milan Humanitarian Society. , Lr I ^'i^r**^ institution for various forms of social betterment 2S , «Q9 1 ^ ^ L^"'^ "^ ^'°'^'"' ^°'«^ ^""^ ^^^ died on Octobe; 28 1892, leaving his entire fortune of over 10,000,000 lire ($1,930,000) to this mstitution Because of continued htigatien (see the Su;vey July 10, 1909, vol 22, p. 541), the operations of the society did not begin until 1900. by which time the accrued interest had LcreaLd the endowment up to nearly 13,000,000 lire ($2,509,000). TVhile the scope of this mstitution is very broad, including technical educa- tion, housing reform, employment offices, and statistical study of abor problems one of the main, if not the main object at present IS the rehef of the unemployed. The scheme of the unemploved relief or msurance adopted by this organization is especiaUy interest- ing because It follows the experience of the well-known Ghent svstem «,Tief \*r?. ."P'''^ ^"^i'i'f t« l^bor organizations granting such Si . V ^^^ ^^^ f'^'"^'' '"^ ^d'l'*'"" t« contributing finan- cially to the support of the unemployed, aims mainly at stimulating self-help and mutual help among the organized workers a. a means J counteracting the harmful effects of unemployment Tnuf't ""^^Ployment insurance fund, which began its operations on July 1, 1905 is regulated by the following constitution: Constitution of the Milan Unemployment Benefit Fund. aaeociations, with participatiorand c^Deradon n? Mif.^ '**'?-*°'' ^'^'"^ ^^'"S^ Humanitarian Society, a^Xany oth^Sett^ w^ 1° ^,?tt'5'''-^ societies, of the Art. 2. This institution aims to^coordin^to thrindivU.K^^ ** participate. s^f!.rdfieii:l'd^'£^Ti'^^^^^^^^^ anc^e W the cooperative ^:^'S^'^:^Z^^^:^:^ ^':i^ by'dSl se^S^iauSirdZ'ln^^S'stplv rfla^"'^^^' ?^ ^'^ ^"^^ -"*<» suspensions of work, independenTof the wnf ^ ^thl "i; '"'^"^'■"'^l ^-^e^. and other breaking down of machinerrc^nflrlridons etc *' ^"'^^'' "^ '''^"''^^ "'^ ^'^'^'^ whlc'h.- besTd^^'tSplo^m^frelLrnS '" ^""^ "-«'"?i?° «'* associations, dence, and cooperation ' P^"* o^eraims of social betterment, pro^il th^PTOt^Y^'n\SoS bvXL'tl^^^^^ 'i'!i;™"'« ••'<' ™-<»''i<'»^ ^-go'ating . ent CToups of workere belon^nt'ii ,h^ membera and the granting of subsidies to differ" of wage ^y« fte tZfbmtv ^dtS^n^t^' r'^ consideration of the «>nditions tions must'be approven^ the Znc^^f Jl^°* unemployment. But these condi- therefore, present ,f kI; fif ^- J^^W''^''''' ^^^^ "^""^ contribute any additional payments whenever the benefat paid to the unemployed member by the association shall exceed 1 50 lire {Z\f per cents) per day. of Tb addition of the institution to the benefits paid by the associations shall be paid P^fi^^trll^^'^^ "^V"^^ ^^^^^ individuals adherin/to the associationn, after pres of these aicounte''^"'^ with statements of amounts paid out, and after the auditing heWina t^Hl!o f.T/^?^''^ ""^ the associations granting unemployment benefits and belonging to the institution must also be registered in some employment office ART. 10 rhe associations must keep accounts of their membership and of the unem- Se^Sudon^ according to a uniform plan determined by the administration of Art 11. Those members who, in the opinion of the council, do not belong to the class o workingmen, those who have deceived or tried to deceive the institution under the wJSV nffl^'l^'IfT^^K''^'-'';.'''^'' ?^Xe refused employment offered by the employ- ment oflice, shall lose the right to obtain any benefits. J h' ^y consktin^o?^^ ^P^^^^io^ of the institutions are supervised and managed by a councU (a) The president of the Humanitarian Society; (6) Another representative of the Humanitarian Society as chairman- c) Two representatives of the trade associations belonging to the institution; and representative of the cooperative societies contributing to the institution; Finally, a representative of those who contribute annually at least 5,000 lire ($965) . Ihe representatives of the trade associations and cooperative societies are elected m annual meetings of the delegates of the individual associations and cooperative societies. Each association is entitled to one vote. ^wuperauve The associations having more than 100 members have one vote for each 100 members ySr'^nd ar'?re^l''1wr°'^ ^^""^ ''^^'^^' ^^^ ''^'''''^ ^^^""^^ '^°'^''' '"^ ^®^'^ ^^ om^"e£S^ihBf^^ P^^^^^^^ ^^^ ^^- ^--' t^- headquarters, Art. 14. The institution is established experimentally for one year. The organization and plan of this form of unemployment insurance appears very plainly from the brief constitution quoted. It follows quite closely the plan of the so-called Ghent system. It began opera- tion on July 1, 1905. In the spring of 1909 an unemployment benefit institution was organized in Brescia by the local branch of the Milan Humanitarian Society. The constitution of tliis new institution follows closely that of the Milan fund. The subsidy given by it to the unemi)loy- ment benefits furnished by the trade associations is determined at 50 centesimi (10 cents) per day for not exceeding 40 days. It may be increased to 75 and 90 centesimi (17 cents and 1,9 cents) to those persons who carry membership in two or three trade associations granting unemployment benefits. According to the latest informa- tion available this institution has not yet begun its operations be- cause the necessary trade association unemployment funds have not yet been organized. The general results of the activity of the unemployment ins/i-- ance fund of the Milan Humanitarian Society are shown in ihe following table for U years, from July, 1905, to the close of l{fOO. The fund began operations on July 1, 1905, with 27 labor organiza- tions affihated and 6,449 members. By the end of the year the number of affihated organizations had increased to 33, and by^ the / CHAPTER Vir.— WORKMEN'S INSURANCE IN ITALY. 192T (Source: BoUettino dell' Ufficio del Lavoro, April 1909 June ico q ■ .. r^ _ cupazione, ColIoeamc'Ltl: SdMn •Muino,^!^]™'"*'^^*^' *^"«'»«' ^^^ Year. Num- ber of amii- ated organi- zations. Number of mem- bers on Dec. 1. JMembers receiv- ing benefits. 1905, July-December 190«> 1907.... 1908... 1909.... 33 8.363 30 8.913 40 11,944 49 12, 198 49 10,931 Number of days for which benefits were paid. Amount of benefits paid. 12,317 12. 242 36, 046 26. 309 25,090 By unions. $2. 776. 12 2. 920. 52 7, 4S9. 49 6.347.18 6, 958. 83 By Human iiarian Society. $1,091.05 1.124.76 3. 408. 75 2, 485. • 8 2.372.42 Average num- ber of davs for which benefits were paid. Total. $3,867.17 4.045.28 10.S9S.24 8.832.86 9,331.25 Average amount of benefits paid. Average amount of bene- fits paid per day. 1905, July- December 1906 1907 1908 1909 67725°— VOL 2—11 1928 BEPOBT OF THE COMMISSIONER OF LABOR. The distribution of the number of beneficiaries and of days for which benefits were paid is given in the next table for 1907 and 1908, by causes of unemployment. In 1908 dull season and industrial crises were responsible for over 80 per cent of all days of unemjdoy- ment. In 1907 more than half of the unemjdoyment was caused by lockouts and shutdowns and discharges in consequence of labor dis- disputes. NUMBER OF PERSONS COMPENSATED AND NUMBER OF DAYS FOR WHIC H BENEFITS WERE PAID BY THE MILAN HUMANITARIAN SOCIETY IN 1907 AND 1908, BY CAUSES OF UNEMPLOYMENT. [Source: Bollettino dell' Ufflcio del Lavoro, May. 1908, and April, 1909.1 Number receiv ing benefits. Days for w'hich benefits v/ere paid. Causes of uaemplojrment. 1907. Dull season Dismissal because of application of new wage scales Lockouts and shutdowns Suspension of work because of strike of other work- men supplying new material Industrial crises Discharge subsequent to labor disputes Closing of establishments through bankruptcy Suspension of operation for the purpose of taking stock Total 1908. 1907. 1908, 652 86 458 15 (^) 266 (*) 787 63 eo 60 57 91 17 Number. Per cent of total. Number. a 15,311 1,344 12,983 42.01 3.C» 35.64 20,308 2.007 1,594 551 6.237 1.51 "i7.'i2' 878 711 COo 9S (&) 50 Per cent of total. 77. 42 7.63 0.06 1,477 1,14.T f36,426 100.00 5.34 J. 70 J. 30 .36 .19 26,309 100.00 a Including industrial crises, closing of establishments through bankruptcy, and suspension of o:>eration for the purpose of taking stock, ft Included \vith dull season, c Including a duplication of 380 days due to benefits being paid }*y two societies to the same persons. The main results of the activity of the Milan unemployment insur- ance funds are shown in the following table by months of the year. The table is interesting mainly in showing the difficulty of drawing any definite conclusions as to the probable unemployment by seasons of the year. In 1905 the greatest amount of unemployment happened in Jul}^ August, and September; in 1906, in July and August; in 1907, in August, September, and December; and in 1908, in January. The table shows that the number of unemployed persons receiving benefits from the Humanitarian Society is often somewhat smaller than that receiving benefits from the labor organizations themselves. Occasions arise when the subsidy of the Humanitarian Society is denied for noncompliance ^\^th some of the regulations. /■ /{ CHAPTER VII. workmen's INSURANCE IN ITALi*. 1929 UNEMPLOYMENT RELIEF BY THE HUMANITARLA.N SOCIETY AND THE TRADE ASSOCIATIONS OF MILAN, BY MONTHS, JULY, lOK, TO AUGUST, 1909. [Source: Bolbttino dell' U.Ticio d?l Lavoro Some of the totals in this table do not agree with the totals in the following table; the figures are given as shown in the original r^'port.j Year and month. 1905. July Augusi September October Novenib?; Decsniber Total, Gmonths. 190G. JaTaarv Februa.-y March April May June July Austist September October November December Number of persons receiving bonefits. From trade ossoria- tioas. Total. . i9o; January February . . March April May June July Augusc September. OetobDr November. December.. Total. 190S. lanujiry... February . . March..:.. Apiil May Juno July August S»ptein;>ei-, Otiober... NovsnibLT. l^ecambcr. Total. 173 203 22-1' 124 119 138 9.^4 122 82 42 63 44 Gl 134 IGl 10'. 84 11.^ 92 1.100 2,019 405 135 118 130 1G7 156 201 205 234 159 193 191 2,300 From the Humani- tarifin Society. 160 18.5 2<)3 110 107 125 896 12-3 81 40 4;^ 41 to 1-24 155 1»7 78 10.> Number of days for which beiieSts wer.^ paid. By trade associa- tions. 2,393 2,9i)2 3,491 1,4(36 1 , 304 1.092 By the Humani- tarian Societv. 2.124 2.576 2. 989 1,388 1.122 1.437 Amount of bfneflts paid by trade as- sociations. I To all un- employed raemb'^rs. 13.398 11.636 1,020 74 71 78 77 63 62 198 192 131 120 133 126 163 144 357 344 374 358 2(i5 242 2S8 274 525 498 2. 508 405 135 lis 130 155 1.50 201 134 216 im 150 170 , 1(0 1.454 908 4.S6 487 497 on 1.493 2.044 1,463 981 1,804 1,602 1,418 896 388 417 388 526 1,361 1.909 1.354 896 1.490 1.197 5487 761 812 315 288 407 To mem- bers ri^ ceiving benefits from the Humani- t^irian Societv. S429 644 es8 321 243 308 .\mount of bent*- fitspaid by the H;miani- tarian Society. 3.07 2.693 295 156 90 119 112 129 319 444 349 232 4S6 ^32 295 156 90 105 99 114 305 43d 342 223 453 25*3 13.856 c 12.242 3.113 2.9-20 858 896 744 1.755 1.527 1,669 1.973 6.949 8.109 2,303 2,468 9,380 822 179 990 185 732 136 l.{.i32 419 1,364 342 1,482 3S9 1.512 406 6.716 1.096 7.9-20 1,147 1.892 553 2.226 552 8.858 2,549 179 185 130 412 325 ai7 303 1,045 l,rt?4 452 im 2,435 38.631 3tl,046 7,953 ,4S'J 5,227 5.157 2.030 2,030 1,334 1.238 1,501 1.408 2,506 2.187 1,775 1.643 2,471 2.317 2,720 2.6% 3,116 2.731 2,462 2. (MO 1,996 1.587 . 2,533 2.100 29,671 27.094 1,274 508 399 294 596 369 503 035 774 5.55 £13 Ci.^2 1,274 508 3iJ0 284 519 347 417 031 69^ 417 402 510 .022 i o.sas Total amount paid to persons receiving b neiiis bo'l" from trid ' as- sociationi and thi» Humara- tarian Society. $174 229 275 128 105 133 9B03 873 963 44<9 34S :oi 1.044 3.737 127 81 36 38 37 49 125 173 120 86 140 107 422 237 126 143 136 163 400 G12 4ti8 30J «wsf 4O0 1.125 4.045 < i S5 69 155 130 136 137 635 756 175 206 848 256 270 205 567 455 433 £00 1.680 1,850 627 712 3.283 3.403 10. S.^ 4.^ l& 117 118 191 150 209 237 243 1S4 151 1,768 097 477 402 710 437 626 838 M2 601 55S 700 2,482 8.800 o This total is not the correct sum of the items; the tgures are given as shown in the original report. 1930 REPORT OF THE COMMISSIONER OF LABOR. UNEMPLOYMENT RELIEF BY THE HUMANITARIAN SOCIETY AND THE TRADE ASSOCIATIONS OF MILAN, BY MONTHS, JULY, im,, TO AUGUST, llWi^ConoludccL Year and month. 1909. January February March April May June July 'August September . . . . October November.... December Total... Number of persons receiving benefits. From trade associa- tions. 113 118 120 147 253 178 371 177 182 200 199 155 2,213 From the Humani- tarian Society. 113 118 118 146 252 175 367 175 169 185 172 148 Number of days for which benefits were paid. A mount of benefits paid by trade as- sociations. By trade associa- tions. 2,138 1,663 1,358 1,448 1,678 3,506 2,291 3,961 2,516 2,7% 2,118 2,137 1,285 26,757 By the Humani- tarian Society. 1,663 1,358 1,406 1,631 3,382 2,212 3,835 2,354 2,296 1,859 1,826 1.108 24,930 To aU un- employed members. 315 305 325 353 729 609 1,104 948 969 714 683 333 To mem- bers re- ceiving benefits from the Humani- tarian Society. 315 305 319 348 715 558 1,078 926 860 629 615 291 A mount of bene- fits paid by the Humani- tarian Society. 145 127 138 159 321 208 347 222 221 189 173 113 7,387 6,959 2,363 Total amount paid to persons receiving ?)enefits lx)th from trade as- sociations and the Humani- tarian Society. 400 432 457 507 1,036 76C 1.42.'5 1, 148 1,081 818 788 404 9,323 XTNEMPLOYMENT BENEFITS, BY TKADE ASSOCIATIONS. In the tables heretofore given the membership of all the afliliated organizations was taken as a whole. The importance of the question of dependence of employment upon the trade calls for additional information. Data concerning the num])er of cases of relief, the number of days for which benefits were paid, and the amount of benefits paid are shown for the years 1906 to 1908 separately for each labor organization affiliated with this unemployment insurance sys- tem. For purposes of obtaining percentages, the mean between the membership of each union in January and in December has been used for 1906 and 1907. As the average membership for the year was available for 1908, it has been used in preference to the mean membership. In some instances the number of cases of relief seems large, even exceeding the mean membership in one occupation in 1907. This shows that some members received benefits more than once durinsr the year. In 1906 the number of cases of relief to printers was 36.1 per cent of the mean membership, and for the compositors the per- centage was 29.5. In 1907 the number of cases of benefits to glaa^ polishers and workers in white glass was 192.6 per cent of the me^n membership. The next highest percentage, 89.6, was for chisel^rs. In 1908 the liighest percentage, 35.4, was for metal forgers. The compositors, printers, and lithographers show comparai lively high percentages for each of the three years. CHAPTER VII. workmen's INSURANCE IN ITALY. 1931 UNEMPLOYMENT RELIEF BY THE HUMANITARIAN SOCIETY AND THE TR\DB ASSOCIATIONS OF MILAN, BY TRADE ASSOCIATIONS, 1906, 1907, AND 1908. ^^^I^V 5°"f"*°^ ^^"' Uffieio^^el Lavoro, April, 1907, May, 1908, and April. 1909. Some of the totals in otigut^re^rL] ^^^ ^ ^^^ ^ ^^^ preceding table. The fl^es are given LshS^iTtS Trade associations. 1906. Bronze workers Chiselers Compositors Blacksmiths Metal casters Printers Instrument makers Bookbinders(&) Lithographers Ironworkers Goldsmiths Mechanics Polishers and platers Workers in leather Newspaper dealers and distributers Dyers Metal turners Office employees Women in printing in- dustry Ribbon makers Workers in trimmings Type foimders Hat makers Glassworkers Basket makers Typographical union Bookbinders (*>) Metal cutters Brasiers Melal forgers Saddlers Pharmaceutical employees Workers in knit goods Gilders Lace workers Upholsterers Horseshoers Mem- ber- ship. («) Cases of relief by- Days for which benefits were paid by — Trade asso- ciations. Total. 57 66 1,300 54 900 977 12 323 463 70 140 108 205 82 Num- ber 3 383 26 353 108 2e5 1,075 522 166 310 18 167 75 74 78 315 120 14 31 55 150 102 150 116 30 61 31 8,790 14 70 1 2 7 6 15 Per cent of mem- ber- ship. 4.5 29.5 2.9 36.1 20 42 19 6 5 1 17 6 52 5 37 7 1.100 4.3 15.1 1.4 1.4 6.5 2.9 18.3 Hu- man- ita- rian Soci- ety. 3 370 26 323 14 70 1 2 7 6 15 Trade associa- tions. Num- ber. 17 4,965 156 4,696 7.5 3.9 3.6 3.6 1.6 5.6 10.2 8.0 16.5 4.2 24.7 6.9 10.0 12.5 20 54 19 6 6 1 17 6 50 5 37 7 cl,055 144 1,080 6 18 119 43 126 Aver- age per mem- ber. Aver age per bene- fici- ary. 0.3 3.8 .2 4.8 184 354 496 53 52 13 147 48 662 51 302 104 20 .4 2.3 .1 .1 1.1 .2 L5 5.7 13.0 6.0 13.3 10.3 15.4 e.o 9.0 17.0 7.2 8.4 Hu- mani- tarian Soci- ety. Amount of benefits paid by- *^ Trade associ- ations. Hu- mani- tarian Soci- ety. 17 4,503 156 4,040 144 1,080 6 18 119 43 126 $4.92 1,331.18 TotaL SI. 64 S6.56 409.58' 1,740.76 38.501 770. 68i 15.061 .7; 9.2 .3 8.4 LO' 26.1 .3 .2 .7 .9 .6 8.8 10 4 13.0 8.6 .8 2.1 .4 2.0 1.0 .7 13,856| 1.6 12.7 10.2 8.2 14.9 184 345 496 53 52 13 147 48 644 51 302 104 37.64: 208.44! 1.16| 5.21! 16.28| 8.30 29.381 S3 &6 348.57] 1,119.25 14.29 104.22 .58 1.74 10.87 4.15 1L78 41.40 74.80 106.92 4.32 9.98 2.70 34.47 2.70 101.80 4.92 72.86 10.03 20 1.93 12.6^12,7112,920.52 17.95 32.81 47.87 4.32 5.02 L26 14.18 1.35 5L93 312. 66 1.74 6.95 27.15 12.45 41.16 31. 49 4.92 29.14 10.04 1.93 1.124.76 59.35 107.61 154.79 8.64 15.00 3.96 48.65 4.05 133.29 9.84 102.00 20.07 3.86 4,045.28 h ?hi \^ r"^ 1907 the mean membership is given; for 1908 the average for the year is used. The two hues for bookbmders represent two different organizations ^^ r.J}^ * ,^ ^ duplication of 29 cases, due to the payment of benefits by three different organizations of £i thToriSnai r^portf'^'''- ^ ^""^^ ^ ""^^ '^^ "^""^^ '"^ °' '^^ '^^'' ^^^ ^^^ are /vSS shot, n d Including a duplication of 469 days due to benefits being paid by the typographical union the com- positors' union, and the printers' union to the same persons. «*P^«-ai union, me com- 1932 REPORT OF THE COMMISSIONER OF LABOR. UNEMPLOYMENT RELIEF BY THE HUMANITARL\N SOCIETY AND THE TRADl ASSOCIATIONS OF MILAN, BY TRADE ASSOCIATIONS, 1906, 1907, AND 1908-Continued. Trade associations. 1907. Bronze workers Chiselers Compositors Blacksmiths Metal casters , Printers Bookbinders(i>) Litliographers Ironworkers Goldsmiths Mechanics Polishers and platers Workers in leather Newspaper dealers and distributers Dyers Metal turners Office employees Women In printing in- dustry Ribbon makers Workers in trimmings Type founders Hat makers Glassworkers Basket makers Typographical union Bookbinders^') Metal cutters.. Brasiers Metal forgers Saddlers Chemical workers Workers in knit goods Gilders Upholsterers Gmss decorators Employees of cooperative societies Horseshoers Comb makers Photo - engravers Loom turners , Glove makers Glass polishers Workers in white glass Soap and perfume makers. Helpers in printing shoi)S. Stereotypers Total. Mem- ber- ship. («) Cases of relief by- Trade asso- ciations. Num- ber. 182 77 1,450 35 800 1,015 514 546 150 120 103 208 78 111 344 858 5991 325' 279| 136| 191 99 133 88 325| 98 14 30 70 125 123 150 162 72' C38' 121 69 576 Per cent of mem- ber- ship. 66.5 89.6 39.7 79 4(8 31 147 5 5 7 21 9 2 6 186 20 20 109 2 9 15 3 50 12 2 2 27 C193 100 C40 C80 C290 C169 C30 C200 C72 c88| C74 1 199 443 9.9 46.1 6.0 2o.9 3.3 4.2 6.8 10.1 11.5 1.8 1.7 21.7 3.3 6.2 39.1 1.5 4.7 15.2 2.3 15.4 12.2 2.9 1.6 22.0 dl.3 d68.& 2,649 4.6 1.2 6.9 .5 3.7 .6 .6 .9 1.0 .8 .6 .2 1.8 .8 2.1 .3 .3 3-2 Aver- age per bene- fici- ary. 16.4 16.2 11.7 12.2 12.8 8.0 13.9 16.8 14.2 12.9 9.7 7.2 36.0 11.2 8.5 22. Hu- mani- tarian Soci- ety. 1,987 1,116 5,869 Amount of benefits paid by- Trade as.soci- ations. S565.49 321.93 1,532.5*1 2.5 1.2 .2 .4 1.2 1 d.3 dlO.3 d49.7 ""d.3 11. 3i 6.4 22.0 6.2 21.2] 9.7 16.3 9.8 6.6 27.0 6. 965 4,717 248 2,024 84 71 90 204 65 72 67 1,587 397 226 685 44 66 318 29 ■ 779 117 11 64 151 18. Oi 18 24.0- 16.1 25.8 12.0) 24 2,997 11,430 24 14.6736,426 Hu- mani- tarian Soci- ety. Total. S191.70 J757.19 107. f9 429. 63 536.06 2,0(.8.63 258.43 1,011.98 67.10 614. 63 16.21 8.5U 17.37 39.37 14. 07 13.90 15.13 423.91 91.19 20. 5o 123. 82 8.49 16. 35 62.79 6. GUI 88.51 434.55 24. Wl 195. 90 8.11 6. 8.'> 8.68 19.69 6.27 6.94 6.46 152. 6« 38.31 20.46 66.06 4.25 6. OH 20.84 2.80 103.91 11.87 1.93 11.00 20.26 2.61) 3.24 817.84 1,372.71 4.0& 7,489.49 36.93 11.29 Loal 6.21 14.481 L22 1.16 289.21 1,103.00 "2." 32 346.94 1,446.53 91.10 710.51 24. as 15.44 26. Of 69.06 20.94 20.84 21.69 676.59 129.50 41.01 179.87 12.74 22.43 73.63 8.40 140.84 23.16 2.99 16.21 34.74 3.83 4.40 1,107.05 2,475.71 ""6.'37 3,408.7510,898.24 a For 1906 and 1907 the mean membership is given; for 1908 the average for the year is used. ^ The two lines for lx>okbinders represent two different organizations. c Membership at end of year. d Based on membership at end of year. e Including a duplication of 25 cases due to benefits being paid by two societies to the same persons. / Including a duplication of 380 days due to benefits being paid by two societies to the same persons. CHAPTER VII. workmen's INSURANCE IN ITALY. 1933 UNEMPLOYMENT RELIEF BY THE HUMANITARIAN SOCIETY AND THE TR\DE ASSOCIATIONS OF MILAN, BY TRADE ASSOCIATIONS, 1906. 1907, AND 1908-Concluded. Trade associations. 1908. Printing trades: Compositors Printers Bookbinders ( c) Lithographers Women m the print- ing industry Stereotj'pers Photo-engravers Typefounders Newspaper emplovees Printing-shop helpers. Printers' Institute Bookbinders (c) Metallurgy: Bronze workers Blacksmiths Metal founders Ironworkers Polishers and platers. Metal turners Brasiers Metal forgers Stone turners Metal boaters Industries of precision: Chiselers Workers in fine me- chanical work Metal cutters Gold))eaters Jewelers Textiles: Weavers • Ribbon makers Trimmings makers. . . • Dyers and stami)ers . . Upholsterers Glass: Glassworkers Glass fitters Glass decorators Leather: Workers in leather. . . . Glove makers Saddlers Chemical industry: Chemical workers Soap and perfumery workers Various industries: Hat makers Basket makers Comb makers Gilders and vamishers Paper hangers Carriage makers Ofiice employees, etc.: Employees' union Commercial employ- ees , Employees of coop- erative stores , Mem- ber- ship. («) Cases of relief by- Total. Trade asso- ciations. Num- ber. 1,484 1,051 616 644 415 72 63 175 122 % 320 120 237 210 650 390 284 602 24 79 267 85 87 70 17 60 111 1,130 402 2191 424 70 250 1481 38 82 105 103 160 70 131 90; a& 250 12i 6OI 487 160 199 Per cent of mem ber- ship. 238 200 31 92 64 24 3 62 10 49 81 9 16.04 19.03 6.02 16.91 13.01 Hu- mao- ita- rian Soci ety. Days for which benefits were paid by— 13.71 3.13 19.38 8.33 20.68 14.73 2. 31 36J 12.68 33! 6.57 28 35.44 56, 20.60 18 (*) (*) (6) (*) (*) (ft) (6) (») (^) (ft) (ft) (ft) (ft) (ft) (ft) (ft) 20.69 (6) (ft) (ft) (ft) .90 34 3.00 11 4 4& 2.74 1.83 11.56 9 12 12 2 3.60 .68 (ft) (ft) (ft) (ft) (ft) (b) (ft) 14.63 (6) 11.43 (ft) 1.94 (6) 8 6.33 15 8 12,64»: 1,20a 1L45 n.54 .40 3.23 L85 4.02 9.54 (ft) (ft) (ft) (ft) <^) (ft) (ft) (ft) (ft) Trad^ associa- tions. Num ber. 9,929 4,735 968 3,304 1,321 386 Aver- age per mem- ber 65 833 50i 376 2.081 95 391 750 138 353 222 86 764 92 49 747 246 12 214 299 66 46 600 133 18 30 294 172 6.6 4.5 L9 6.1 3.2 2.2 Aver- age per bene- fici- ary. 34.9 21.5 3L2 36.9 24.5 .7 2.6 .4 L6 3.8 .2 1.4 1.6 1.7 L3 10.0 Hu- mani- tarian Soci- ety. Amount of benefits paid by- Trade associ- ations. 8,327 2,037.80 4,3121 806.66 9681 234.08 2,954; 785.32 Hu- mani- tarian Soci- ety. TotaL 1,321 141.14 73L55 2,769.-35 388. 50j 1,195.16 94. 091 34& 17 285.06] 1,07a 38 j 127.48 268. C2 21. 13.4 6.0 7.7 I i^ 385 92. m 37.07; 129.23 23.3 10.6 10.9 22.7 2.6 .7 .2 .2 L8 4.9 6.4 65j 6.27 833 166.07 50; 7. 34 I 370! 103.74 6.27 42.78, 5.40 36.61 12.54 208.85 12.74 139.35 1,885 647.24 95 18. 33 391 ! 75.46 750; 192. 03 211.98 9.17 37.73 70.64 138 38. 98| 353 101. 62 12.3 36.0 22.5 8.4 12.3 15.2 1.0 27.2 12.0 2.6 2.8 .6 .3 3.8 6.1 "'."2 .9 (ft) 29,713 2.3 222- 36 764 92 49 747 13.32 34.06 246 12 33.58, 10.42 181. 18 10. OS" 9.55 219.33 2L43 3.48 73.731 8.44 4.73 7218 859.22 27.50 113. 19 262-61 62.30 135. C8 17.81 24. 9 33.0 6.8 70.931 2.31; 23.06 1.16 33.3 44.3 18.0 7.5 32.7 214 299 66 46 500 133 18 30 294 21.5: 172 5S.58 49.22 19.11 8.11 55.01 13.90 264.91 24.52 14.28 29L51 93.99 3.47 64.94 20.84 24.39 6.37 4.44 28.81 25.671 1Z83 2. 41 1. 22 S.m 2.80 62.63 28.37 33.19 16.60 79.42 73.61 26.48 12.66 93.75 38.50 3.63 8.69 9a 90 49.79 :i' 22. 5| 27,136 6,347. 18|2, 486. 68j 8,832.86 a For 1906 and 1907 the mean membership is given; for 1908 the average for the j-ear is used » X^ot rex)oi ted. c The two lines for bookbinders represent different organisations. 1934 KEPOET OF THE COMMISSIONER OF LABOR. PROPOSED GOVERNMENTAL UNEMPLOYMENT INSTmANCE. On June 16, 1910, a bill was introduced in the Chamber cf Deputies by the minister of the interior for the organization of a system of state insurance against unemployment, on the Ghent plan. The bill pro- posed only the first steps in that direction, through an appropriation of 100,000 lire ($19,300) to be used in subsidizing workmen's unem- ployment insurance organizations. In a comprehensive report accompanying this bill the general problem of unemplo3Tnent was discussed and the various methods of rehef suggested were compared. The bill, which is very brief, proposes the appropriation of 100,000 lire ($19,300) for the fiscal year 1910-11, to be administered by the minister of agriculture, industry, and commerce for the purpose of granting subsidies to labor organizations which grant unemployment relief. Only the following few requirements are specified in tlie bill: (1) That the unemployment relief granted by these organizations bo based entirely, or at least partly, upon the principle of- saving, i. e., that the organizations should not be purely charitable and should receive a part or the whole of their revenues from meml)ersliip con- tributions. (2) That a definite length of membership be required before relief is granted, so that workmen would not join these organi- zations only at the time when relief is needed. (3) That the sub- sidized persons be able-bodied workmen. This, according to tho memorandum accompanying the bill, is intended to exclude the sick, the injured, the aged, the invalid, and women after childbirth, for all of which groups special provision either exists alrea^M 1899 voi: ^ 6^Raccolta Uffieiale delle Leggi e dei Docreti del Regno d' Italia, 1900, vol. 1. 1940 REPORT OF THE COMMISSIONER OF LABOR. occupations, and at the age of 55, after 25 years of membership, for active occupations; invalidity pensions after 10 years of membership, this qualification being waived in case of invaUdity due to injury; and regulated the pensions of widows and orphans. Concerning the mutual benefit societies, the main provisions which the law estab- lished were the prohibition of pensions to survivors of members and the prohibition of any sick benefits during the first five days of illness. The organization of a commission, including representatives of the Government, the railroads, and the members of these institutions, was ordered for the preparation of new constitutions, to be uniform for all pension funds and for all mutual benefit societies, this com- mission to determine the necessary revenues to correspond to the assumed obligations. The law also requirodn<. these changes were approved by the royal decree of August 2 10^^ th T. 1 ^T""^" operation of the railroads pix>ved ui;satisfactorv the Itahan Government decided to take advant^age of the twenty-^e^ dause m the lease, aiid the operation of the main raihx>ad sUt^^ Tl^'^'t '" '""V^ '"^'^ ^ conformance with the law olpS 22, 190o ^ew constitutions embodying only minor changes we^ approved by royal decree of March 17, 1907, Vor the JZonfunZ ZlrByt^rlf-'^ as weU as for tl. neJ^J^^^l^ tlJV«?r t'^^^T'^^ "moreover, that in view of the consolidation of the railroads under the unified administration by the State the^ was no necessity for three separate institutions of'^each oite ^ gi^ups, and one week after the new constitutions were approved 7^ aw of March 24, 1907, ordered their consolidation into one i2s oo fund one mutual benefit society, and one provident i^tSon Constitutions of these three unified institutioL wei^ ap^ved T; the royal decree of May 23, 1907. approved by The entire sy stem was radicaUy changed by the law of July 9 1908 which amied to reduce the differences of treatment of e^loSS of different groups. The law pr^cribed a unified systeHf L^ ^omng, which was worked out in a codification of the kw^dth rnL of the provisions m the constitutions of the thi^ corolidX! mstitutions, published by royal decree of April 22,1^9. T^ ^ ti^is law the three institutions ceased to exist on DeceX 31 1908, and the new system was introduced on January 1, 190^ ' STATE RAILEOAD PENSION FUND. pn^dnliontfn'' " w'""* '"'P.'"'**''* "^ '^' thi^e because the Eu „f ft '*^°^'""^'^t'«'^ ^«« <^ioseW followed in ekbomting the deta s of the existmg pension system, in which the membership ?f «U the three mstitutions was merged. ^ The purpose and scope of the^pension fund was the grantin- of old- age and mvahd,t.v pensions to its members, pensions^to wilws and orphansofdeceasedmembers,lump-sum benefits tomembez^orSows ana orphans m cases in which a right to a pension had noTbern acquired, and in addition the fund assumed 'the adnlistrTt In of accident insurance in compliance with the general laws ^vcmii^ such insurance. t,"^frning The fund was specially designed for the employees of the state rail way system; within that system is included the altual operat n! f^r^ and the clerical force, but not the working force of the rEa^?!! "T Membership in the fund was restricted to such persons J S membership in one of the three pension funds on December 31 1896 1942 REPORT OF THE COMMISSIONER OF LABOR. including, as was explained above, mainly salaried em])loyees and such persons who were on that 'date members of a mutual benefit society and later became entitled to membership in the pension fund by promotion to a higher position. The pension fund took care of ordinary superannuation, as well as of ordinary invalidity at an early age, providing special benefits for invalidity due to occupational diseases or to miasmatic fevers; it granted pensions to survivors in case of death of either a member or a pensioner. Regular superannuation pensions were payable to members who retired from the service, either by their own request or by the decision of the administration, after attaining 60 years of age and after 30 years of membership in the fund, in case of sedentary occupations, or after attaining 55 years of age and after 25 years of membership in case of so-called active occupations, whi<*h include in general the train service, yard service, and station service. Employees of either group may demand a pension at the age of 55 and after 25 years of membership, provided they have had 15 years of actual service. Invalidity pensions were payable at any age, when such invalidity had been established, provided it was preceded by 10 years of mem- bership in the fund. This condition was waived when invalidity was due to an injury or other lesion acquired through the service, or to some miasmatic fever, caught in consequence of the service in an infected locality. If members of 10 years standing were separated from the service by the railroad administration without any fault of their own, they may be permitted by the administration of the fund to retain their mem- bership in the fund, contributing according to the last salary, the rail- road making the regular 8 per cent contribution. In such cases families retain the same rights as if the person had been in the s(irvice. In addition to the pensions to members, pensions were paid to widows and children of deceased members or pensioners as explained below. BENEFITS. As was pointed out above, the chief characteristic of tliese pension funds was the absence of any strict dependence between a member's accumulated contributions and his pensions. Normal pensions, which may be termed ])lain superannuation pen- sions, were liquidated on a basis of 3 per cent of the accumulated earnings of the members from whom deductions were made, to which are added one-twelfth of each increase in salary during the time. The actual annual pension was equal to nine-tenths of this computed amount, with a minimum of 300 lire ($57.90) and a maximum of 8,000 lire ($1,544). This, in case of a complete 25 years' membership, CHAPTER VII.— workmen's INSURANCE IN ITAiY. 1943 would give a pension of over 75 per cent of the average annual salary In ca^e of premature invahdity due to some injury or disease received m the service, or to a miasmatic fever, the pension fund was even more hberal. In such cases the pension was computed on a basis of 25year^of membership, no matter how long or short it actually was and for such purposes the last year's salary was assumed for all missing years. The amount of pensions to widows and orphans depended upon the amount of the pension which the deceased member was receiving, or to which he would have been entitled if he had left the service on the day of his death. The amounts of these pensions were proportionately very hi^h namely 50 per cent of the original pension if the widow alone^r- vived; 65 per cent if she had any mmor children; if in addition mmor children of the deceased by a previous marriage survived the 65 per cent was divided among all the survivors, giving the widow two shares, and not less than 25 per cent. The widow's pension was paid until remarriage, and the children's pension until they were of age, or in case of female children until marriage, if that took place before they became of age. If a member of the fund was forced to give up his position, either because of invalidity or of the abolition of his position before he had acquired the right to a pension, he received a benefit in the nature of one payment equal to 3 per cent of his total salary. A propor- tionate amount according to the pension regulations was granted to the widow and chddren of a deceased member who died before acquiring the right to a pension. If minor children, but no widow survived, they received 50 per cent of the computed amount divided equally among all those surviving or still entitled to a pension because 1 \ Tr^^' ^^ ^""^^ ^^" ^^^^ ^^^^ remained he received 25 per cent of the computed amount. Thus, with a few minor exceptions, the pension fund provided very SlSsTf tt^^^^^^^^^ -'-'''' ^^^ superannuation age anj on! rtVeMT-f ?' ^T'^"' '^' P'^^^"^ ^^^^^^ ^^« ^ contributory one (the contributions being very high as will appear in the following section) It seemed to be somewhat of a drawback that the peS nghts were los altogether by resignation or dismissal from he service, except m the cases of persons in the employ of raLaS subsequently acquired by the State, who lost their positiL at the t^ tlZn:^1Z^^^^ ^'^^ '''''' ^^' -^^ -^^^^ -^- --^-hip in wit^ft It ""^ ^^' r^^^ ^^ f P"^'^^^ ^^"^^"^^ ^^ resignation carried With It a correspondmg total loss to the widow and cWldren, while in 67725°— VOL 2-11 29 1944 KEPOBT OF THE COMMISSIONER OF LABOR. i' ik»» case of dismissal the wife and minor children were treated .under the same rules as in case of death of the employee. While all invahdity, whether or not due to industrial accidents, gave the right to a pension, a certain number of the employees insured in the fund come under the provisions of the accident com- pensation law, and therefore special provisions were included in the constitution for the purpose of adjusting these two rights and prevent- ing double compensation for accidents. In general thesp provisions may be summarized as follows: That in so far as the railroad admin- istration had not otherwise provided for tlieir accident insurance, the pension fund acted as the agent of the railroad administration for payment of compensation ; of the two amounts, that due to him as a member of the pension fund and that due under the accident com- pensation law, the larger was paid to the injured employee or to his survivors, the distribution being made according to the provisions of the accident law; on the other hand the railroad administration was required to pay to the pension fund tlie amount of compensation due under the accident law. SOUIICES OF INCOME. All of the assets of the three pension funds were transferred to the State Railroad Pension Fund. The cunent revenues of the fund may be divided into three main groups: {a) The periodical contribu- tions of the members; (&) the periodical contributions of the railroad administration as an employer; and (c) a special source of income created by the law of March 29, 1900. The contributions paid by the private operating companies before the assumption of the railroad business by the Government were then made by the State, but as before from the operating accoimts. In addition, donations and legacies might be received by the fund, and the income from investments of the funds on hand were added to the revenue. Under the constitutions of January 1, 1890, for the three indi- vidual pension funds monthly deductions of 4.5 per cent were made from the salaries and other accessory payments made to the employees. By the constitution of 1902 these were increased to 5.5 per cent on October 21, 1902. In case of an increase of the annual salary, one-twelfth of the increase was retained during the first month after the increase went into effect. In other words, the actual increase of the salary was retained for one month. If the salary was reduced because of sus])ension, leave, sickness, or transfer to a waiting list, the deductions were made as if no such decrease of salary had taken place. If the salary was entirely dis- continued for a tinae, the employee must make the deferred payments on return to the active service. . CHAPTER VU. WORKMEIS-^'S IXSUEANCE IN ITALY. 1945 From January 1, 1890, until October 21, 1902, the railroad admin- istration paid to the pension fund 5 per cent, and since that date 8 per cent, of the salaries- subject to the deductions, and in case of a promotion one-twelfth of the increase in the annual salary. In case of temporary reduction or discontinuance of the salary the administration met its obligations at the same time that the emploj^ee did. A special source of income was created for the fund by the law of March 29, 1900, act 3, in turning into the fund the proceeds of the sale of tickets of admission to raihoad stations. ADMINISTRATION. The pension fund was intrusted to an administrative committee of 12 members, of whom 6 were nominated by the state railroad administration and 3 were selected by the members in active service. Of these 9 members all but one of the administration's representatives must be employees in active service. The other 3 members were required to be representatives of other governmental departments, one of the Ministry of Agriculture, Industry, and Commerce and the other two financial experts from the l^Iinistry of the Treasury. Several other high officials were mentioned as con- sultative members of the committee. The committee elected its own president, vice-president, and sec- retary, who were not to be the above-mentioned representatives of government departments. Various provisions were contained in the constitution concerning the investment of the funds and the auditing and reporting of the financial affairs. The entire cost of the admin- istration was assumed by the railroad administration. STATISTICS. MEMBERSHip.—The movement in the membership and the number of pensioners in all the three funds is shown in the following table. The rapid decline in the membership since 1897 is easily explained by the organization of the new provident institutes.^ But even before that the membersliip appeared to be decreasing, though, as was shown in the table on page 1936, the number of employees of the ItaUan railroads was growing. But it seems to have been the policy to increase the number of temporary appointees rather than of permanent employees. Thus while the number of permanent employees has actually decreased within the decade 1891 to 1901 from 89,723 to 88,995, the number of temporary employees increased from 8,457 to 19,695. f 1946 KEPOET OF THE COMMISSIONER OF LABOR. With the practical closing of the pension funds to new members, the proportion of pensioners to members rapidly increased. In 1890 there were 16.5 pensioners for each 100 members, and in 1907, 67.5 pensioners per 100. AVERAGE ANNUAL NUMBER OF MEMBERS AND PENSIONERS IN THE THREE RAILROAD PENSION FUNDS. [Ssurce: Ferrovie dello Stato, Rapporto sulle OperazionI e suite Stato Economico delle Cessate Casse Pensioni per Tanno 1907.) Adriatic fund. Mediterranean fimd. Sicilian fund. Total of the funds. Year. Average number of mem- bers. Average number of pen- sioners. Average number of mem- bers. Average number of pen- sioners. Average number of mem- bers. Average number of pen- sioners. Average number of mem- bers. Average number of pen- sioners. 1890 13.964 13.927 13,601 13,286 13,069 12. 754 12, 494 12,341 12,196 11,9.37 11,669 11,368 10,986 10,569 10,155 9,762 9,447 9,240 2,598 2,997 3,462 3,817 4,118 4,438 4,701 4,959 5,196 5,442 5,706 5,951 6,203 6,453 6,695 6,924 7,058 7,123 22,304 22,506 22,405 22,205 22,008 21.895 21,705 21,503 21,310 20,902 20,348 19,843 19,3.53 18,859 18,309 17,753 17,244 16,820 3.481 3,883 4,387 4,809 5,145 5,489 5,905 6,318 6,701 7,155 7,626 8,070 8.487 8.870 9,293 9,618 9.865 10,099 851 844 890 915 941 954 972 951 933 907 890 875 881 900 892 889 861 861 34 40 49 55 71 90 103 136 153 184 200 218 230 260 275 282 291 293 37.119 37.277 36.^96 36,406 36,018 36.603 36,171 34, 79.5 34.439 33, 746 32,907 32.086 31,220 30,328 29.356 28,404 27,552 26,921 26,321 6,113 6,920 7,898 8,681 9,334 10,017 10,709 11,413 1891 1892 1893 1894 1895 1896 1897 1898 12,050 12,781 13,532 14,239 14,920 15,583 16. 263 1899 1900 1901 1902 1903 1904 1905 16,824 17,214 1906 1907(a) 1907 (fc) ...... 17.515 17,764 o First six months. t> Last six months: united fund. A study of the reports concerning the movement of membership of the pension funds furnishes very valuable material concerning the death rate and the disabihty and retirement rates of railroad employees. In the following tables these rates are computed for the entire membership as well as for the main groups. Perhaps the most interesting feature brought out is the small number of deaths or retirements due to accidents. Thus, for tlie ten years 1800 to 1899, the total number of retirements due to accidents was, for the two larger funds, 183, and the total number of fatal accidents 204, or 18.3 and 20.4 per annum, respectively. With an average membership of 35,000 members, this gives a rate of one accidental invaUdity per 1,913 employees, and one fatal accident to 1,716 employees. The general rate of retirements and deaths naturally increases, in view of the discontinuance of new admissions in 1S97, but not so rapidly as one would expect. To some extent this prohibition of new admis- sions was limited by the rule permitting transfers of members of the mutual benefit societies by promotion from a daily wage to a monthly salary. During 1890 to 1894 the average rate of retirement for old age and disability was 2 per cent, or 20 per tliousand; for 1895 to 1899, 2.14 per cent, or 21.4 per thousand; for 1902 to 1906, 23.6 per thousand; CHAPTER VII. — workmen's INSURANCE IN ITALY. 1947 and in 1907, 36.5 per thousand. The average death rate in 1890 to 1894 was 9 per thousand; in 1895 to 1899, 8.6 per thousand; and in 1902 to 1906, 9.7 per thousand. The percentages of resignations and dismissals are small, and have been growing very much smaller. As the constitution provided no repayments for members who resigned or were dismissed for cause, the increased value of the acquired rights to a pension evidently had the effect of counteracting the tendency both for resignations on the part of the employee and dismissals by liis superiors. MOVEMENT OF MEMBERSHIP IN THE ADRIATIC, MEDITERRANEAN, AND SICILI\N PENSION FUNDS, 1890 TO 1907. ISource: The annual reports of the funds. From 1890 to 1899 the Adriatic and Mediterranean funds onlT are included.] ' Number of members — Year. 1890... 1891 .. . 1892... 1893 . . . 1894... 1895... 1896... 1897... 1898... 1899... 1902... 19a3... 1904... 1905... 1906. . . 1907(c) 1907 (d) Members lost because of— Disability. In Jan- uary. 36,006 36,529 36,337 35.676 35,307 34,846 34,451 33,946 33,742 33.271 31,669 30,764 29.890 28,847 27,965 27,167 <26, 677 Ad- mit- ted dur- ing year. 1,697 1,232 688 731 594 732 614 842 676 313 149 232 107 88 61 50 62 Total. 37.703 37, 761 37,025 36,407 35,901 35,578 35,065 34.788 34,418 33,539 31,818 30.996 29.979 28,935 28,026 27,217 26, 739 Due to old age and inva- lid- ity. 616 856 891 605 651 677 725 695 712 821 353 439 («) («) (a) («) («) Due to acci- dent. To- tal. 25 18 22 25 10 17 11 10 20 25 20 17 («) («) («) («) («) 641 874 913 630 661 694 736 705 732 846 716 794 805 680 534 373 612 Per cent. Death. Nat- ural. 306 316 302 311 297 316 276 252 288 259 180 167 («) («) («) («) («) Acci- den- tal. 26 24 15 31 11 20 20 16 20 21 12 11 («) (a) («) («) To- Resigna- tion or dismissal. Per Nura- Per- tal. cent. ber. cent. 332 340 317 342 308 336 296 268 308 280 304 300 278 280 298 164 140 0.9 .9 .9 .9 .9 .9 .8 .8 .9 .8 1.0 1.0 .9 1.0 1.1 { 201 210 123 128 86 97 87 73 107 51 34 30 39 10 27 3 21 as .6 .3 .4 .2 .3 .2 .2 .3 .2 .1 .1 .1 (6) (») .1 a Not reported separately. f> Less than one- tenth of'l per cent. c First six months. d Last six months. < lu July. The same data are given m the following table for each branch of the service, for the ten-year period 1890 to 1899, only the two large funds being included. In both funds the highest retirement rate Is found in the groups of maintenance-of-way and station service, and the lowest in the office force. The rates of retirement are much higher for the Adriatic fund, which had a membership of a much higher average age. The higher i*etirement rates for the maintenance-of-way and sta- tion service is partly due to a higher average age of these groups, rail- road employees being transferred to these easier occupations when they 1948 KEPORT OF THE COMMISSIONER OF LABOR. are considered because of their age unfit for the more strenuous duties of the active train service. Thus, in 1890 in the Adriatic fund there were among the office employees only 15.7 per cent 50 years of age and over ; among the engineers and firemen, 17.5 per cent ; in the train service, 18.7 per cent; in the station service, 20.2 per cent; and in the main tenance-of -way, 34.2 per cent. AVERAGE MEMBEHSHIP FOR 10-YEAR PERIOD 1890 TO 1899 IN THE MEDITERRANEAN AND ADRIATIC PENSION FUNDS, BY BRANCH OF THE SERVICE. [Source: The annual reports of the funds.] Mem- ber- ship. Members lost because of— Disability. Death. Resigna- tion or dismissal. Fund and branch of the service. Due to old age and inva- lid- ity. Due to acci- dent. To- tal. Per cent. 1.7 1.7 2.5 2.0 1.4 Nat- ural. Acci- den- tal. To- tal. Per («nt. 0.8 .8 .8 .8 .9 Num- ber. 2 6 4 28 24 Per cent. Mediterranean fund: E ngineers and firemen Train service 2,276 2,120 3,696 6,793 7,724 33 34 91 131 110 5 2 2 5 1 38 36 93 136 111 17 15 26 52 72 2 3 3 5 1 19 18 29 57 73 0.09 .28 Maintenance of way Station service .11 .41 Office force .31 Total 22,609 399 15 414 1.8 182 14 196 .9 64 .28 Adriatic fund: E ngineers and firemen Train service 1,306 1,061 1,980 2,4«1 6,522 27 27 98 84 92 2 3 1 1 29 30 99 85 92 2.2 2.8 5.0 3.4 1.4 11 7 14 22 54 1 3 2 2 1 12 10 16 24 55 .9 .9 .8 1.0 .8 1 3 1 16 32 .77 .28 Maintenance of way Station service .50 .04 Office force .48 Total 13, 3.56 1 328 7 335 2.5 108 9 117 .9 53 .40 Salaries. — For a better appreciation of the data concerning the pensions paid by these funds, it is necessary to give some information concerning the earnings of the Italian railroad employees. In the following tables the average salaries have been computed from the annual reports of the Adriatic and Mediterranean funds, as far as available, namely for 1890 to 1899, and 1890 to 1903, respectively. The average earnings have increased during this period from $314 to S369 in the Adriatic fund, and from $278 to $339 in the Mediterra- nean fund. Tliese averages are considerably higher than for the entire railroad personnel, asshownin the table on f)age 1936, and are explained by the fact that the pension funds included mainly the higher paid employees. The discontinuance of new admissions in 1897, except by transfer from the mutual benefit societies, in itself is responsible for a considerable increase in the average salar}^. As a matter of fact, the greatest increase in the average salary is noticeable in the \ \ CHAPTER VII. workmen's INSURANCE IN ITALY. 1949 class of office employees where the highest salaries are paid; while in some of the other groups there was little or no increase. The average remuneration of these employees in the Adriatic fund during the last five years for which information is available (1895 to 1899) was as follows: Engineers and fireman, $410; train service, $281 ; maintenance of way, $185; station service, $204; and in office service, $450. In the Mediterranean fund data are available for a later period, 1900 to 1903, and though more recent are somewhat lower, namely: Engineers and firemen, $399; train service, $276; maintenance of way, $175; station service, $192; and office employees, $477. AVERAGE ANNUAL SALARIES OF MEMBERS OF THE MEDITERRANEAN PENSION FUND, 1890 TO 1903, AND OF THE ADRIATIC PENSION FUND, 1890 TO 1899, BY BR\NCH OF SERVICE. [Source: The annual reports of the funds.] Engineers and fire- men. Maintenance of way. Train service. Fund and year. Member- ship. Average annual salary. MemT>er- shlp. Average annual salary. Member- ship. Average annual salary. Mediterranean fund: 1890 2,104 2,131 2,152 2,154 2,155 2,190 2,252 2,293 2,369 2,351 2,363 2,372 2,341 2,329 2,139 2,291 2,351 1,009 1,006 980 1,274 1,336 1,443 1,461 1,468 1,462 1,460 1,121 1,459 $376 377 376 377 380 377 379 378 374 377 384 388 403 420 377 377 399 443 445 449 409 407 406 406 407 412 417 431 410 4,154 3,985 3,857 3,717 3,618 3,493 3,399 3,272 3,151 3,031 2,885 2,739 2,653 2,532 3,8(i6 3,269 2,702 2,385 2,253 2,032 1,967 1,897 1,800 1,713 1,583 1,5.35 1,409 2,107 1,{>08 $157 157 159 160 159 160 161 160 164 168 172 173 175 179 158 163 175 176 178 179 179 180 181 182 183 186 191 178 185 2,053 2,042 2,049 2,054 2,062 2,096 2,075 2,087 2,033 1,987 1,923 1,876 1,815 1,755 2.056 2,056 1,842 1,094 1,063 1,026 1,007 975 943 926 1,040 1,087 1,110 1,033 1,021 $251 1891 1892 253 232 1893. . 1894 253 2S3 1895 1893 219 2S3 1897 1898 255 1899 256 1900 262 1901 265 266 1902 1903 285 268 2fa 2S5 276 2T8 275 Average: 1890 to 1894 1895 to 1899 1900 to 1903 Adriatic fund: 1890 1891 1892 1893 27o 1894 287 1895. 2S3 1893 284 1897 288 279 1898 1899 275 27» Average: 1890 to 1894 1895 to 1899 27» 2Si 1950 EEPORT OF THE COMMISSIONEE OF LABOR. "^y^fTSt^^ "^^^^^^ ^^^"^^^^^ ^^ MEMBERS OF THE MEDITERRANEAN PENSION nv^?«v?pl' T't'l''.''^ ^^^ ADRIATIC PENSION FUND, 1890 to 1.119, BY BRANCH ur oiiiKViL/iii — Concluded. Fund and year. Mediterranean fund: 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1932 1903 Average: 1893 to 1894 1895 to 1839 1900 to 1^33 Adriatic fund: 1890 1891 1892 1893 1894 1895 189.) 1897 1898 1899 Average: 1890 to 1834 1895 to 1899 Station service. Memljer- ship. Average annual salary. 6,768 6,690 6,591 6,460 6,483 6,508 6,368 6,302 6,288 6,075 5,886 5,721 5,574 6,373 6,599 6,304 5,638 2,981 2,833 2,687 2,551 2,284 2,161 2,048 1,967 1,855 1,790 2,673 1,964 J178 181 179 179 179 179 179 180 180 182 185 • 187 197 200 179 180 192 192 192 200 196 197 199 200 210 205 206 195 204 Office employees, etc. Mt^mber- ship. 7,478 7,607 7,705 7,671 7,619 7,542 7,48) 7,473 7,373 7,166 7,029 6,892 6,722 6,624 7,616 7,408 6,817 6,503 6,695 6,595 6,452 6,394 6,275 6,218 6,0&3 5,9&3 5,839 6,528 6,080 Average aimual salary. Total. S415 415 408 404 416 419 425 427 444 444 455 465 488 498 412 432 477 408 407 412 431 429 436 445 448 456 466 417 450 M«'nil>er- ship. 22,557 22,455 22,354 22,056 21,960 21,829 21,580 21,427 21, 194 20,610 20,080 19,600 19, 105 18,613 22,276 21,328 19,350 13,972 13,882 13,320 13,251 12,886 12,622 12,366 12, 141 11,922 11,608 13,462 12, 132 Average annual salary. S378 281 280 2lM) 385 286 289 2U2 295 300 308 315 3:10 339 281 292 323 314 318 385 385 33S 344 352 3ri6 3m 3<)9 31*6 356 Pensions.— In the following two tables is shown the activity of the pension funds in the distribution of pensions. The first table gives the total number of current pensions at the end of each y(iar, while the second table gives the number of new pensions granted during eacii year. Because of the great difficulty in obtaining material the tables are not as complete as they should be. No data were available for the Sicihan fund prior to 1901, and therefore totals for all the three funds could not be obtained for the earher years; and for the other two funds the data are incomplete for a number of years, mainly as far as the i)ensions to ori)lian families are concerned. The data presented are nevertheless sufficient to indicate the general results. The increase in the amount of pensions is better demonstrated in the second table, showing the average amounts of pensions granted during the years specified. The averages fluctuate mainly because of the diiference in the occupation of the employees pensioned, as the differences in the annual salaries of the different classes of employees* are considerable. The pensions of the widows include those with and without minor children, and for a few years the data were given sep- /' I CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1951 arately for these groups; but as the total amounts given to the minor children are not very great the averages are affected but shghtly by combining all the widows into one group. The averages for members fluctuate from year to year between $180 and $300, seldom fallin*' outside of these hmits. If the means of five annual averages are con- sidered, then the increase from 1890-1894 to 1903-1907 for the Adriatic fund is from $198 to $257, and for the Mediterranean fund from $188 to $235. To appreciate the actual purchasing value of these pensions in Italy, it IS necessary to keep in mind not only the general level of prices and the standard of fiving, but also the wages paid. Roughly the widow's average pension equals about one-half of the employee's average pension. Taking the mean of the averages for all the funds for pensions granted each year, 1902 to 1907 the employee's pension equals $241, the widow's pension, $123, or 51 per cent, while the average pension of a family of minor orphans equals $53 per annum, or about 22 per cent of the employee's pension V\Tien the entire number of current pensions is considered the average amount appears to be much smaller and less subject to fluc- tuations, though the tendency to a higher average pension is unmis- takable. In the Mediterranean fund the average current pension for 1889 to 1893 was $160, and for 1903 to 1907, $192; in the Adriatic fund the increase was from $172 to $206. The difference between the average amount of the current pension and that of the pension granted is easily accounted for by the survival of many very low pen- sions granted many years ago when the wages of the Itahan railroad employees were very much lower than they are now. 1952 REPORT OF THE COMMISSIONER OF LABOR. NUMBER, AMOUNT, AND AVERAGE OF PENSIONS PAID EACH [Source: The annual CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1953 Fund and year. Pensions paid to- Mediterranean fund: 1889 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907(c) Adriatic fund: 1889 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 190G 1907(c) Sicilian fund: 1901 1902 1903 1904 1905 1906 1907(c) Total funds: 1901 1902 1903 1904 1905 1900 1907(c) 1907(d) Number. 1,583 1,770 2,138 2,471 2,664 2,824 3,029 3,322 3,551 3,794 4,112 4,357 4,614 4,801 5,006 5,218 5,274 5,356 5,491 1,103 1,356 1,640 2,058 2,215 2,434 2,623 2,816 2,9€0 3,104 3,246 («) 3,497 3,628 3,731 3,852 3,955 3.918 3,956 109 114 132 135 140 134 133 8,220 8,543 8,869 9,205 9,369 9,408 9,580 9,728 Members. Amount. $2.13,098 2t«, 657 341,142 430,685 4151,252 4X4,911 529,804 696,660 648,401 704,637 7«4, ;93 824, 150 »13,409 »»4,337 949,582 9)19,558 l,ai6,563 1,0.13, 365 1,0J«9,202 179,835 227,590 2«0,061 3r.2, 136 402, 631 4.'iO, 826 495,341 543,108 &V9,709 696,925 623,128 685,075 7)8,861 738, 9^3 769.995 826, 445 826, 516 840,398 24,390 27,266 33,017 35,852 37,827 36,867 36,872 1,572,874 1,650,464 1,721,582 1,795,405 1,870,835 1.896,748 l,9 288, 770 » 315, 652 358. 928 382, 015 402, 713 426,268 445,638 465, 729 472,566 93, 468 102, 628 114,471 124, 257 129,963 140,355 154, 766 166,314 176, 744 188, 142 201, 634 («) 249, 931 268,068 284, 605 301,075 315, .329 329,830 334, 735 11,201 12,260 14,001 15, .328 15, 707 19, 522 20,054 620,060 662,343 701,319 742,671 776,674 815,081 827, 355 840, 051 c First 6 months. 14,582 15,246 15,894 16,617 17,024 17,395 17,636 17,893 35,958 39,739 47,231 51,394 53,575 5«i, 465 57,002 2,210,595 2,331,32(3 2, 440, 5[^ 2,556,909 2, 665, so; 2,732,371 2,814,285 2,883,212 <»Last6montlis; united fund. 156 157 157 158 164 164 •165 165 173 182 187 190 194 193 152 153 154 154 157 157 160 161 , 1954 REPORT OF THE COMMISSIONER OF LABOR. NUMBER, AMOUNT, AND AVERA(;E OF NEW PENSIONS GRANTED [Soiirce: The annual Fund and year. Adratic fund: 1890 1891. 1892. 1893. 1894. 1895. 1896. 1897. 1898. 1899. 1900- 1901. 1902. 1903. 1904. 1905. 1906. Pensions granted to— Number. 1907 (ft) Mediterranean fund: 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907(6).. Sicilian fund: 1902 1903 1904 1905 1906 1907 Total funds: 1902 1903 1904 1905 1906 1907(6)... 1907(c)... 310 382 507 261 342 313 310 281 285 299 333 313 335 314 172 131 297 468 453 338 314 362 438 397 442 533 466 494 383 458 463 390 350 316 11 22 12 8 7 1 727 793 810 712 529 448 397 a Not reported. b First six months. Memlters. Amoimt. 166,903 66,935 98,008 57,446 73,416 69,343 70,484 5.J,625 56,344 56,392 76,051 67,641 80,352 101,253 44,730 32,290 64,231 87,566 104,712 67,143 62,126 72,310 98,038 83,546 02,905 123, 470 84,096 87,604 76,614 95,974 m, 131 86,621 82,489 93,705 4,165 6,910 4,382 2,423 1,789 442 155,830 170,525 180,865 190,297 129,008 126,437 110,765 Average. 1180 180 193 220 215 222 227 191 194 189 n 225 216 240 322 260 246 183 187 231 169 198 200 224 210 210 232 180 177 200 210 208 222 236 297 379 314 365 303 256 442 214 215 223 267 244 282 279 CHAPTER VII.— WORKMEN 's INSURANCE IN ITALY. 1955 EACH YEAR, 1890 TO 1907, BY FUNDS AND CLASSES OF PENSIONS, reports of the funds.] Pensions granted to— Widows (with and without minor children). Number. 121 148 137 146 153 166 142 146 154 174 («) («) 195 207 224 209 203 88 138 197 192 207 174 230 220 208 259 251 274 306 261 282 331 334 358 122 9 12 12 4 29 6 465 501 567 547 590 216 204 Amount. $12,071 15, 153 13,207 16,556 14,207 19,411 16,623 16, 776 16, 728 18,586 («) («) 24,626 26, 707 28,557 25,466 26,393 12,015 14,394 20,171 20,050 20,521 17,850 24,503 21,761 23,479 26, 150 29,406 35,527 33,940 32,995 30, 816 38,243 38, 746 42,216 14,986 1,252 1,851 1,328 452 4,851 742 58,873 59,374 68, 128 64,664 73,460 27, 743 27,020 5,687 2n 8.8tK2 253 5,710 238 2.875 240 6,676 180 1,184 160 217,936 174 232,866 173 253,605 174 258,426 196 207,856 172 155,675 Sit 139, 693 209 c Last six months; united fund. 1956 EEPOKT or THE COMMISSIONER OF LABOE. The following table, showing the number and amounts of pensions by the five branches of the service, further illustrates the v(5ry high level of pensions both to the members and to the widows. Unfortunately it was possible to bring the data down only to 1899 for the Adriatic fund and to 1903 for the Mediterranean fund, lat«r data not being available. But the fluctuations are not very great, nor could there be any radical change, since the provisions of the constitution regu- lating pensions have not undergone any important changes since 1890, while the rates of contributions from both sides have btien increased to meet the cost of the pensions. The average amount of the pensions fluctuated for engineers and firemen roughly between $200 and $300, for the train service person- nel between $150 and $200, for the trackmen and otlier persons employed in the maintenance of way between $100 and $120, for the station and yard service between $115 and $125, and among the ofiice force, this class containing the highest paid employees, between $300 and $400. The widows' average pensions are equal to about half the average pensions of the members. NUMBER AND AVERAGE PENSIONS GRANTED I'ACH YEAR TO MEMBERS AND THEIR WIDOWS BY THE ADRIATIC AND THE MEDITERRANEAN PENSION FUND8 1880 TO 1903, BY BRANCH OF THE SERVICE. [Source: The annual reports of the funds,] Pensions granted each year to — Fund and year. Engineers and firemen. Train service employees. Mainte- nance- of-way employees. station service emjrfoyees. Ofllce employees, etc. Total Num- ber. Aver- age. Num- ber. Aver- age. Num- ber. Aver- age. Num- ber. Aver- age. Nnm- ber. Aver- age. Num- ber. Aver- age. MEMBERS. Adriatic fund: 1890 27 30 30 36 26 22 25 21 31 23 155 127 24 40 29 38 33 34 31 44 35 69 37 •250 223 239 274 211 275 294 303 273 254 254 278 241 264 229 241 266 269 245 231 228 284 258 17 21 30 17 28 31 32 25 37 23 113 148 21 40 31 29 42 32 45 23 49 40 47 $193 179 212 185 187 182 177 176 181 180 193 179 205 162 183 159 187 179 172 144 183 187 188 123 125 212 42 53 83 82 85 80 104 555 434 G3 116 89 110 76 98 68 106 83 107 113 S105 104 106 115 112 112 104 123 119 103 106 112 110 111 no 96 104 106 102 115 110 im 107 70 100 113 82 114 75 69 77 65 76 479 302 119 171 108 100 85 124 160 126 167 180 172 $121 123 121 114 126 117 125 115 117 118 121 118 119 123 115 115 114 118 116 117 112 115 108 73 100 122 84 121 102 1(¥) $336 329 3% 361 350 388 one 310 382 507 261 342 313 310 281 285 299 1.802 1,488 300 468 406 370 316 379 424 420 445 645 477 $1W 180 l'J3 220 215 222 2'J7 191 194 189 196 205 181 187 226 181 193 196 209 222 190 2W 184 1891 1892 1893 1894 1895 1896 1897 73 1 323 TO OOTk 1898 1899 C8 500 417 73 101 149 93 80 91 120 121 111 149 108 374 357 304 317 363 385 334 3.36 378 399 436 360 447 357 Total— 1890 to 1894 1895 to 1899 Mediterranean fund: 1890 1891 1892 1S93 1894 1895 1896 1897 1898 1899 1900 CHAPTEE VII. WOEKMEN's INSURANCE m ITALY. 1057 NUMBER AND AVERAGE PENSIONS GRANTED EACH YEAR TO MFICRPRR av-« THEIR WIDOWS BY THE ADRIATIC AND THE MEDITERRANEa\ pExSoN FU^^^ 1890 TO 1903, BY BRANCH OF THE SERVICE-C^ncluded. i'E^SION Ft NDS. Fund and year. MEMBERS— Concluded. Mediterranean fund— Con. 1901 1902 1903 Total— 1890 to 1894 1895 to 1899 I«00tol903 WIDOWS, (a) Adriatic fund: 1890 1891 1892 1893 1894 , 1895 1896 1897 1898 1899 Total— 1890 to 1894. 1895 to 1899. Mediterranean fund: 1890 1891 1892 1893 1394 : 1895 189ti 1897 1898 1899 1900 1901 1902 i9a3 Total— 1890 to 1894., 1895 to 1899.. 1900 to 1903.. Pensions granted each year to— Engineers and firemen. Num- AveX' ber. j age. Train service employees. Mainte- nance- of-way employees. 44 36 164 213 183 10 9 11 14 6 7 8 7 4 5 50 31 11 11 13 11 10 11 12 13 28 14 15 20 14 11 56 78 60 $240 307 302 250 256 279 124 127 132 105 153 111 114 126 126 101 124 115 107 151 114 136 90 153 127 122 106 124 105 119 117 125 120 122 116 Num- ber. 55 36 49 163 189 187 10 8 8 7 6 11 4 6 3 6 39 30 17 18 13 10 6 13 13 9 12 13 12 12 , 14 16 64 fO 54 .\.ver-:Num age. ber. $172 170 204 177 176 184 79 98 83 90 47 66 73 68 62 81 81 70 93 90 78 71 85 68 64 69 65 80 73 72 91 74 85 69 78 Station Office service | employees, employees. etc. Aver- Num- age. ber. 121 75 110 454 462 419 33 29 36 13 18 17 8 12 10 11 129 58 26 37 27 23 14 22 26 11 25 14 20 19 12 IQ 127 98 70 $103 110 133 106 108 113 63 54 64 47 45 57 58 62 56 55 57 57 71 60 56 55 50 53 61 55 57 51 68 59 56 48 59 56 58 165 135 142 583 757 614 33 49 40 15 25 18 12 10 20 9 162 69 42 60 32 33 24 44 42 36 33 31 32 46 34 44 191 186 15C Aver- Xum- age. ber. $116 116 127 118 115 117 77 65 68 53 53 48 65 56 61 62 65 58 67 63 51 51 57 58 54 55 57 , 57 57 64 51 50 m 56 56 106 91 89 496 592 394 32 53 42 39 28 27 30 39 42 41 194 179 42 71 39 50 45 46 40 41 40 45 59 48 66 48 247 212 221 Total. Aver- Num- Aver- age, ber. I age. $333 359 355 353 408 351 1C9 160 145 150 112 146 134 136 136 125 151 132 166 153 157 128 130 160 169 137 134 152 188 164 168 14S 149 151 168 491 373 456 1.860 2.213 1,797 118 148 137 88 83 80 62 74 79 72 574 367 138 197 124 127 9» 136 133 110 138 117 138 145 140 138 685 634 561 $177 196 207 1»4 211 191 102 102 96 110 78 91 104 101 103 101 99 100 104 102 95 91 90 100 97 95 90 103 121 105 117 08 99 97 100 o Not including widows of pensioners since 1893. The relation between the average pension and the average salarv, by branches of the service, is clearly brought out in the foUowi^ table. Five-year averages have been used so as to eUminate acci- dental annual variations. The members' pensions amount to about 60 to 70 per cent of the wages, and the ividows' pensions about 30 to 35 per cent. The pensions are proportionately highest among the oliice employees where longer service is possible before invaUditv occurs. "^ -J 1958 KEPORT OF THE COMMISSIONER OP LABOR. PROPORTION BETWEEN SALARIES AND PENSIONS OF ADRIATIC AND MEDITER. RANEAN PENSION FUNDS, BY BRANCHES OF THE SERVICE, 1890 TO 1903. (Computed from preceding tables.] Engineers and firemen. Train nervlce. Aver- age sal- ary. Average pension granted to— Aver- age sal- ary. Average pension granted to— Fund and year group. Members. Widows. Members. Widows. Amt Per cent of sal- ary. Amt. Per cent of sal- ary. Amt. I»er cent of sal- ary. Amt. Per cent of sal- ary. Adriatic fund: 1890 to 1894 $431 410 377 377 399 $254 278 250 256 279 58.9 67.8 66.3 67.9 69.9 $124 115 120 122 116 28.8 28.0 31.8 32. 4 29.1 $279 281 252 255 276 $193 179 177 176 184 C9.2 c:<. 7 70.2 (i9.0 m.7 $81 70 85 69 78 1895 to 1899 29.0 Mediterranean fund: 1890 to 1894 24.9 1895 to 1899 33.7 1900tol903 27.1 28.3 Maintenance of way. Station service. Adriatic fund: 1890 to 1894 1895 to 1899 $178 185 158 lti3 175 1105 112 106 108 113 59.0 60.5 67.1 66.3 64.6 $57 57 59 56 58 32.0 30.8 37.3 34.4 33.1 $195 204 179 180 192 $121 118 118 115 117 62.1 57.8 65.9 63.9 60.9 $65 58 59 56 56 33.3 Mediterranean fund: 1890 to 1894 28.4 1895 to 1899 33.0 1900 to 1903 31.1 29.2 Office force. All occupations. Adriatic fund: 1890 to 1894 $417 450 412 432 476 $353 364 353 408 351 84.6 80.9 85.7 94.4 73.7 $151 132 149 151 168 36.2 29.3 36.2 36.0 36.3 $326 356 281 292 323 $196 205 194 211 191 ra.i 57.6 69.0 72.3 69.1 199 100 99 97 109 1895 to 1899 30.4 Mediterranean fund: 1890 to 1894 28.1 1895 to 1899 35.2 1900 to 1903 33.2 33.8 Finances.— A general review of the finances of the three pension funds since their organization in 1890 is given in the following table. Then- combined assets in 1890 were $15,841,525, and in 1907 when the three funds were united the assets amounted to over twenty-two million dollars. Nevertheless, a more careful analysis shows that their finances were not in a satisfactory condition. The annual excess of income over expenditures rapidly decreased except for the small Sicilian fund. The Adriatic fund had a deficit annually since 1900, wliich the very much increased revenues of 1902 (i. e., the increase of members' contributions from 4.5 to 5.5 per cent of the salary, and of the railroad contributions from 5 to 8 per cent) succeeded in reducing only for a time, but could not altogether obliterate. The Mediterranean pension fund also showed a deficit in 1901, and while the increased revenues of 1902 succeeded in creating a surplus, it rapidly declined during the following years. As the number of pensioners rapidly CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1959 grew, the expenditures mcreased Yer>^ much faster than the income- thus the combined revenues in 1907 ($2,827,439) show an increase of S^no^o..^!^ ^^' ''""^ 7^' ^^^'^ ^^ ^^^^' ^^^ ^^^ expenditures i^^,809,9d7) are more than four times as great as those for 1890 Of course, as the admission of new members was practically discon- tinued in 1897, the pension funds were winding up their affairs, but the computation of the actual obligations repeatedly indicated that the funds were not solvent. FINANCES OF THE ADRIATIC, MEDITERRANEAN, AND SICILIAN PENSION FUNDS 1890 TO 1907. " ' [Source: The annual reports of the funds.] Year. Income. 1890. 1891. 1892. 1893. 1894. 1895. 1896. 1897. 1898. 1899. 1900. 1901. 1902.. 1903., 1904 1905 1906 1907 («>).... 1907(c) ■| $1,909,181 1,954,609 1,968,871 3,021,310 1,994,996 1,995,528 2,038,856 2,089,741 2,103,058 2,132,529 2,160,622 2, 127, 123 2,271,512 2,662,908 2, 639, 712 2,599,843 2,774,611 1 , 429, 406 1,398,033 Expendi- tures. $694, 974 851,864 1,041,785 1,179.658 1,281,915 1,413.310 1,560,400 1,675,604 1,783,306 1,927,454 2,054,405 2,179,066 2,300,282 2,415,397 2,517.570 2, 598, 827 2. 753, 202 1.362,330 1,447,607 Surplus. Deficit. $1,214,207 1, 102, 745 927.086 841,652 713,081 582,218 478,456 414, 137 319, 752 205,075 100,217 247,511 122.142 1,016 21,409 07,076 $51,943 28.770 49,574 Assets at end of year. $15,841,525 16,944.2?0 17,871,356 18,713,008 19,426,069 20,008,307 20,702.104 21,116.241 21,435.993 21,641.068 21,747.285 21,695.342 21, 666, 572 21,914.083 22,036,225 22,037.241 22,058,650 22. 125. 726 22,076,152 In"tKi?r^'e4a ""'' '^"'' ''"' ^''' ^° '''' ^'^ ^b- ^^"^J"« ^ 1S96; the figures are given as shown b First six months. e Last six months; united fund. In the following table the income and expenditures of the three Cr°. w^'-^"' '^'",!? f""- ^^^ period since their reorganization in iM2 until their consohdation into one pension fund in 1907 The total income for 1906 amounted to $2,774,61 1, and for the first SIX months of 1907 to $1,429,406. The regular raih-oad contributions represented the largest item in these two years, being in 1906 $978 560 or 35.3 per cent of the total. Adding to this the income from the proceeds of the sale of tickets of admission to stations, $90,993 or 3.3 per cent, the total share of the raih-oads was 38.6 per cent Income from interest and mvestments in some years even exceeded the rail- road contributions; in 1906 it amounted to 35.2 per cent of the total inus the employees themselves contributed only one-fourth ('>5 1 per cent) of the total revenues of the funds. A decided increase in the revenues is noticeable in 1902 as compared with the pr«.eding years. This is caused by the increase of the con- tnbutions of both tlie members and the raikoads, as pointed out in 67725°— VOL 2—11 30 1960 EEPOET OF THE COMMISSIONER OF LABOR. the history of the funds. The members' contributions were 4 5 per cent of then- salaries until October 20, 1902, and 5.5 per cent since that date. Thus for the larger part of the year the smaller contri- bution was exacted. On the same date the railroads' contribution changed from 5 per cent to 8 per cent of the salaries; thus the m(>m- bers' contribution increased by 22.2 per cent, and that of the railroads by 60 per cent. As a result, the share of the members' contributions to the total revenue increased from 25.() per cent in 1902 to 26.4 per cent m 1903, while that of the raikoads increased from 29.3 per cent to 34.8 per cent. In the expenditures of the pension funds the main item naturally consists of members' pensions, followed by widows' pensions, the latter including the shares of minor children whose mothers are living Pensions to orphans do not represent a very large amount, and lump- sum benefits are insignificant, notwithstanding numerous provisions m the constitutions of the funds concerning such benefits. The vast majority of the members of the pension funds evidently earn pen- sions. The proportion between the amounts paid out to members and to widows remains fairly uniform. In 1902 the amount paid to widows was about 40 per cent, and in 1906 about 42 i>er cent of the amount paid to members. This proportion indicates tliat the Italian railroad pension funds are much more than merely old-age and mvahdity pension funds, since they protect thousands of families of deceased employees and pensioners. INCOME AND EXPENDITURES OF THE PENSION Fl NDS, BY SOURCE OF INCOME AND ITEM OF EXPENDITURE, 1902 TO 1907. [Source: The annual reports of t le funds.] INCOME. Fund, source of inoome, and Item of expenditure. 1902. 1903. 1904. 1905. 1333. 1907. (a) Adriatic fund: Members* contributions. . . Railroad's contributions . . Interest, etc $224,190 254.110 348,710 30,618 13,937 191 $266,716 366,552 351,640 28,952 5,625 $269,704 362. 888 350,400 28,514 6,239 $256,755 354,435 348,633 24,571 4,881 $270,883 876,111 W2,673 37,845 8,770 $151,938 209,:{34 Sale of tickets of admi,s,sion to stations 162,061 Accident compen.sations, excess of receipts. . . All otter ;; 12,H39 6,117 6,355 Total 871,756 1,019,485 1,017,745 989,275 1,056,282 647, (i44 Mediterranean fund: Members' contributions. .. Railroad's contributions .. Interest, etc -336,540 388,990 529,538 39,647 15,169 5,002 411,184 525,315 542,627 39,413 9,234 4,989 378, 418 535,643 527,613 42,220 11,105 10,320 368,306 526,095 534,943 43,131 20,714 11,270 398,894 6(>3,828 ^ 538,902 51,987 10,937 8,679 224,297 309, H45 Sale of tickets of admission to stations 262,357 Accident compensations, excess of receipts Another 11,807 7,341 3,846 TotAl 1,314,886 1,532,762 1,511,.J19 1,504,519 1,673,287 819,493 o For first 6 months only. CHAPTER VII.— WOKKMEN *S INSURANCE IN ITALY. 1961 INCOME AND EXPENDITURES OF THE PENSION FUNDS, BY SOURCE OF INXOME 4.XD ITEM OF EXPENDITURE, 1902 to 1907lconcluded ^ INCOME— Concluded . Fund, source of income, and it«m of expenditure. Sicilian fund: Members' contributions. . Railroad's contributions. , Interest, etc Sale of tickets of adinission to stations Accident com])ensations, excess of receipts , All other 1902. 1903. Total. Total funds: Members' contributions. . . Railroads' contributiems. . . Interest, etc Sale of tickets of adinission to stations Accident comiyensations, excess of receipts . . Another $20,511 22,263 38,525 1,825 *'i,"746" 84,870 1904. $25,177 34,155 40,397 1,387 153 9,392 110,661 $24,017 34.319 42,430 1,305 284 8,293 1905. 1900. 581,241 665,363 916,772 72,091 29,106 6,939 703,077 926,022 934,604 69,752 15,012 14,381 110,648 $25,738 34.917 44,217 1,172 5 $27,742 38,621 75,693 1,161 "i,"825' 106,049 145,042 Grandtotal | 2,271,512 2,662,908 672,139 932,850 920,443 72,039 17,628 24,613 2,639,712 650,859 915. 447 927,793 68,874 25,600 11,270 2,599,843 697,519 978, 5«:0 977,328 90,993 19,707 10,504 2,774,611 1907.« $16.2gr 22.306 22.760 eas 218 62.269 392.522 541. 4S5 447,178 25,244 13,458 9.419 1,429,406 EXPENDITUBES. Adriatic fund: Pensions to — Members $707,979 258.796 8,595 $734,101 $753,190 275,153 298.115 8,318 8,681 $794,567 296,700 7,819 $859,951 330. 779 8,013 Widows $414,042 Orphans 164.337 3,901 Total pensions.. . 975,370 1,017,572 i 1,059,986 1,099,086 1.198,743 582.280 iiUmp-sum benefits . . . All other expenditures. 1,352 5,645 327 15,200 286 4,418 1,756 1,519 802 195 531 Total expenditures.. 982,367 1,033,099 1,064,690 1,102,361 1.199,740 582.811 Mediterranean fund: Pensions to — Members 890,897 376,681 9,582 933.384 972,356 993,440 437,794 11,418 1,018.006 457,223 11,608 Widows 516.285 Orphans iiy4,y24 1 41/, /M 9,929 ' 11,280 228,918 5,977 Total pensions Lump-sum l^enefits. . . All other expenditures. 1,277,100 1,338,237 1 1,401,400 1,442,652 1.486,837 751,180 3,086 1,280 1,122 377 898 160 1,274 10,288 601 105 Total expenditures. . Sicilian fund: Pensions to— Members 1,280.246 1,339,517 1.402,899 1,443,710 1,498,399 751.886 (ft) (ft) (ft) (ft) (ft) (ft) 37.210 15,202 118 37,054 17,965 41 Widows 17.961 Orphans 9,6:)2 20 Total pensions 37.G(.9 42,274 49,855 62,530 55,050 27,633 All other expenditures. 160 347 126' 218 8 is" Total expenditures . . Total funds: Pensions to — Members 37,6C9 42,781 49,981 52,756 1,825,217 749.696 19,355 55,063 27,633 c 1,598, 876 c 635. 477 « 18, 177 cl, 607,485 c 670, 077 c 18, 247 c 1,725,546 c 715, 879 c 19, 961 1,915.011 805,957 19,662 Widows 948.308 Orphans 402,887 - 0,888 Total pensions T __ . 2,290,199 2,398,083 2,511,243 2,594,268 2,740,630 1.361,093 l^ump-stira benefits All other expenditures! 4,438 5,645 1,767 15,547 1,408 4,921 2,872 1,687 2,076 10,496 1,132 106 Total expenditures.. 2,300,282 2,415,397 2,517,570 2,598,827 2,753,202 1.362,330 » * irst 6 months only, b Not .«>- larif^elxT 1-OT-./1 T^t\^ e> XT.«.4. i_ 1.. J* ^, SicUian fund, not separately reported. 1962 REPORT OF THE COMMISSIONER OF LABOR. STATE RAILBOAD MTTTTTAL BENEFIT SOCIETY. Tins institution was primarily a compulsory sickness insurance so- ciety and only secondarily an old-age pension fund at the same tim(3. Gradually, however, the old-age benefits became the most important funetion, and eventually widows' and orplians' pensions were added. Ihe history of the origin and various changes of the individujd mutual benefit societies and their consoHdation into one organization has been given hereinbefore. The purpose and scope of this society embraces medical and sani- tary service, sick benefits, invalidity pensions, or lump-sum subsidies where the right of pension has not yet been acquired, and, in addition, similarly to the pension fund, it assumed the administration of acci- dent compensation to its members. Since 1905 it has also granted pensions to widows and orphans. Membership in this fund was compulsory, and included all persons who held membership in one of the three mutual benefit societies on December 31, 1896. This included mainly the employees of lower grades; but as in the original constitution of the Mutual Benefit Society of the Alta Italia Railroad, employees were permitted to hold membership in both organizations. Many of the emplovees retained membership in both the pension fund and the mutual benefit so- ciety. These evidently did not need any of the invalidity and old- age pensions of the mutual benefit society. The membership was therefore divided into two groups, ^^ordinary,'' who hdd member- ship m the mutual benefit society only, and '^aggregate'' members {compaHedpanti aggregati) holding membership in both organizations. The activity of this institution was many sided, as explained above! ' It embraced insurance against sickness, accidents, old age and inva^ hdity, ^^r\\}l some provisions for the orphans and widows, not so exten- sive by far as in the ci.se of pension funds. BENEFITS. A free medical service was kept up and supported by ihe mutual benefit society m conjunction with the second section of the new provident institute, both societies contributing their respective shares of the net cost in proportion to the total annual salaries of the respective memberships. The constitution of 1907 further pro- vided that as soon as this amount becomes greater for the second section of the new provident institute the management shaU be transferred to it. Some features of this medical service were free to all employees of the railroads, whether holding membership in either of the two organizations or not. These free functions included (1) the deter- mmation of the fact of illness; (2) the furnishing and maintenance CHAPTER VII. workmen's INSURANCE IN ITALY. 1963 in repair of orthopedic apparatus (this, however, was limited to results of injuries in the course of service, as far as nonmembers are concerned); (3) the supply of antifebriles in recognized cases of malaria; and (4) the maintenance of life-saving appliances and furnishing of emergency first aid. The cost of the last two functions, and also of the first two as far as applied to nonmembers, was reim- bursed to the mutual benefit society by the railroad administration. Medical Aid to Members.— The medical care of the members of the mutual benefit society and of the second section of the provident institute was not limited to the few functions enumerated above. It included all medical and surgical aid, medicines or their cost, hospital treatment when necessary, and other special treatment during illness or convalescence (but not including the cost of boarding and lodging), the cost of transportation of the sick or injured mem- bers to their homes or to the hospital, and, finally, funeral benefits, calculated at 5 per cent of annual wages, but not below 30 lire ($5.79). Sick Benefits. — The above numerous forms of medical and surgi- cal or pharmaceutical aid were granted to all members of the mutual benefit society as well as to those of the second section of the provi- dent institute. The sick benefits, as compensation for wages lost, were paid only to the ''ordinary" members, when because of illness no wages were paid. The sick benefits amounted to two-thirds of the daily wage beginning with the fourth day of illness and for not over 180 days in any one calendar year. No sick benefits were paid in case of ilhiess, due to disorderly conduct, vice, fights, or in work outside of the railroad service, or when the sick member declined to enter a hospital when directed or to subject himself to the orders of the physicians of the society. Old-age and Invalidity Pensions.— These may be described under two headings, pensions and lump-sum payments. Old-age and invalidity pensions were primarily intended for the ''ordinary" menibers, the "aggregate" members receiving very little outside of medical treatment and other similar benefits. The constitution of the society did not provide for any straight old-age pensions, but only for "continuous disability benefits." This means that the society did not recognize any standard retire- ment age; but as the benefits were continuous they may be classified with pensions,, and as they were paid for disability they seem necessarily to include disability arising from old age. The require- ment of 15 years of membersliip as a condition of granting such benefits brings them still nearer to old-age pensions. After 15 years of membership, if forced to give up his employment because of proven disability (invalidity) the male employee holding membership in the society received a continuous benefit (or pension) 1964 BEPOBT or THE COMMISSIONEE OF LABOB. IjCMP-SUM BENEFrrs to Membfkq Tf . ' 1 relieved of his position hecluT^TT{^-l u .""^ ""iployee was bership in tlie societv Ln J n^«J'^t>' before 15 years of mem- the last three veai3 LrlZht f T'^^ *'^""' ^^'"'y during of two montls'7y aecrdinrt: Irr"'^"^^^^ "'"\^ "^^--^ disabihty was due iTinSn reSvlw ^'"■'^' '°°""* '"^^'- " this benefit was increase" b7o7e-fStithr^'"' '"" ^^f^*"'^' average annual salary ' ^'^^' * mimnium of half the siol' werja'nt^dTf ^'T^^^T'''' "'"'^'^^^ ^^^^^^ or pon- the last 3 veara )JTjh . *''^ ^^^'^S** ^"""^ «alary of length, buUra'^JirU'rt'tV^'^^^^^^^ ZeCliZeTrirjvtii r- ^^- -^^^^^ .ght. as a^:uS;L:itf st^ro^r.^^ ^^*^ ^- ber"x"x d^fjrrr;e^r Thr ^^" -- sum benefit computedTccordin! t T '^'^*'?'^>ty' received a lump- tbe amount paidt Mnrb;te^lltT:r ^' '^-^ ^^^'^ ^^^^^ pen^tlnTrrtu^anetTsLLtJ'^ ^ P-^ ^- ^He benefit societies c^frpro^^tf™ "''^''*^^^^ ""/ '^' '""*"'J orphans of deceased menfCor JinSoronW *'" r^'^'^' the law of April 22 1905 fArt 21 w! i ? V ® societies. But roads by the Governmen n!' . ' f'f"'**J^g ^^^^ operation of rail- beginning with July nQosiTl^tli^ ^r*"'' ^^^^-^-on members who die or wl th . ! *''"' ^** "'P''*"" "^ ^^^^^ wno die or leave the railroad service after June 30, 1905 CHAPTER VII.— WORKMEN 'S INSURANCE IN ITALY. 1965 No rights were acquired by tliis amendment by the sur%-ivors of deceased members who died before July 1, 1905, or who died subse- quently but had been separated from the service before July 1, 1905 The widow's right was subject to the condition that she had not been legally separated from her husband through any fault of hers. Furthermore, both her rights and those of her children were condi- tioned upon the foUowing: That her marriage had taken place at least two years before the day of the member's death or dismissal from service, Mid that it was solemnized before the husband was 50 years old. This latter condition was waived, however, if the death was due to malaria or injury. All minor children, whether legitimate illegitimate, adopted, etc., provided they were unmarried, were entitled to share in the pension. These conditions, appUcable to widows and children, were waived in case of marriages solemnized before July 1, 1905. The widows' pensions were to run until death or remaniage, and the children's pensions untU reaching majority, or m case of the giils, until marriage if preceding such majority. ' The pension which the deceased member had been actually receiv- mg before death, or if he died in active service, that to which he would have been entitled if he had been forced to resign because of invaUdity on the day of his death, was taken as a basis of these ^\idows' and orphans' pensions. Of the actual or computed amount of the member's pension the widow received 50 per cent if she alone survived, and if minor chil- dren also survived she received 65 per cent in all. If children alone survived they received 50 per cent equally distributed, with a new redistribution eveiy time one of them became of age. If only one minor child survived he received 25 per cent. If in addition to the widow and her children other minor children of the deceased by a previous marriage survived, the 65 per cent was distributed in equal shares among all these survivors, the widow receiving two shares, and in no case less than 25 per cent. These pensions or continuous payments to the widow and chUdren were evidently the exception, for they were due only to the widow or children of such members as were receiving or were entitled to pen- sions at the time of death, and moreover, only if the grantin.' of the pension or the death in service had taken place since July 1 1905 If the husband died in active service before 15 years of memberehip or If he died as a pensioner, said pension havmg been granted to him[ before July 1, 1905, the family received only a smaU lump-sum bene- nt. If he died m service this lump sum amounted to one-twentieth of the average annual salary of the last three years of service for each year of membership m the society, with a mhiimum of two months pay and a maximum of one year's pay according to such 1966 EEPOET OF THE COMMISSIONER OF LABOR. disease which are compensated under special laws or regulations If a member who was reUeved from the servicp ZH ■' ■ a pension died and his family was^t entltC^ ? ^ 'f^'^'^^ f "Sf :t^^t ittir -bS :E of recogmzed mistake in a disciplinary .lismis^ B,,, X^ , ♦k„ „ -i . • "t* . * **^' *i<» who were not memb(!rs of anv nf the providen mstitut ons and were not insured in some o the way The proyisions regulating this branch of the societv^., nrnt-. ^* pTsSi^dt'^'Th T- ^° •: ^""^™^ thVr/^::Lrof7h: pS-t^^tyislt tHl^^al^^^^^^^ came benefit society the payments as regulaterbTthl Tw mlT received the payments due to them as member and if T.,';, *! CHAPTER VII.— workmen's INSURANCE IN ITALY. 1967 tion due under the law, the cost of medical treatment, etc. ^Mien pensions instead of lump-sum payments were due under the accident law, the capital necessary was transferred to the National Old- \ge and InvaHdity Insurance Institution, by which the annuities were paid. SOURCES OF INCOME. Notwithstanding the important extension of benefits by the law of AprU 22, 1905, granting widows and orphans' pensions, the general scale of benefits paid by the mutual benefit society was somewhat lower than that of the pension fund. On the other hand, the cost of medical service and sick benefits was a charge which the pension fund was not called upon to meet. The sources of revenue of the mutual benefit society were numerous, as is seen from the following list* 1. Assets transferred to the society at the time of its organization or to be transferred to it in conformance with the law of March '>9 1900 (surtax upon rates.) ' 2. The deductions from the members' pay. 3. Contributions from the railroad administration. 4. Income from fines and penalties imposed upon the railroad personnel. 5. The net proceeds of the sale of unclaimed articles found any- where on the railroad premises. 6 The net proceeds from the sale of railroad tariffs and time- tables. 7. The unclaimed overcharges on freight. 8. Excess sums found in the cash accounts of stations 9 Donations and legacies without special designation of purpose. 10. All other revenue which may be assigned to the society 11. Income for the investment of the funds Members' CoNTRiBUTiONS.-Most of these sources of revenue were mdehnite contingent upon many other conditions; but the contribu- tions of the employees and employers were strictly established by the constitution. J ^ The ordinary members contributed untU October 21, 190'> 3 per cent and since that date 3i per cent of their salaries and other emolu- ments for contract work, overtime, etc. As in the case of the pension funds, these contributions were partly offset bv an annual redistribu- tion among those members who are subject to the accident law of one-half of the reimbursements from the raUroad administration to the society for payments under the accident insurance. The reason for such redistribution is patent. As the mutual benefit society out of Its own funds compensated for invahdity due to accidents those of Its members who were not protected by the accident law and was . / 1968 EEPOBT OF THE COMMISSIONEB OF LABOR. reimbursed when granting accident compensations to persons so protected, it is evident that a portion of its revenues was expended in a form of benefits, payable only to those of its members not other- wise provided for, and if their contributions were equal to those of the members protected by the accident law, then in view of tlie mutual character of the society, one class of members would l)e contributing for the benefit of the other class. The amount so dis- tributed was very slight however. The ''aggregate'' members, whose rights to benefit were rather limited, paid only 1 per cent of their salary. Employers' Contribution.— The regidar contributions of the railroad administration were increased twice since their reorganiza- tion in 1890. Up to October 21, 1902, they amounted to 3 per cent, or were equal to those of the employees. From October 21, 1902, to December 31, 1905, they were 4.2 per cent, and since January 1, 1900, they became very heavy, amounting to 8.15 per cent of the annual wages of the ''ordinary" members. It contributed nothing on account of the "aggregate" members. This contribution was in- creased since the nationalization of the railroad business, when pen- sions to widows and orphans were introduced, thus considerably re- ducing the difference between the respective benefits of the better paid members of the pension fund and the lower paid members of the mutual benefit society. administration. The rules for administration of the mutual benefit society were practically identical with those of the pension fund. STATISTICS. Membership.— The movement of the membership of the three mutual benefit societies is shown in the following table. The decrease in membership was even more rapid than in the case of the pension funds, for a large proportion of the members were employees of the lower grades, in which changes are more frequent and tenure of service less secure. As was explamed above, there were two grades of membership, "ordinary" and "aggregate," the latter holding mem- bership in the pension fund at the same tune. The total average annual membership decreased from 60,851 to 36,789, or nearly 40 per cent. The greatest reduction was in the number of "aggregate" members, which was reduced to less than one-half, decreasing from the time of the first reorganization of the society in 1890. The number of "ordinary" members began to decrease in 1896, when admission of new members was discontinued. The decrease of mem- bers proceeded from two reasons, not only because of se})aration from CHAPTER VIL— workmen's INSURANCE IN ITALY. 1969 the service, through death, invalidity, resignation, dismissal or any other reason, but also by promotion from a daily wage to a monthly salary which carried with it a transfer from membership in the mutual benefit society to that in the pension fund. AVERAGE ANNUAL MEMBERSHIP OF THE THREE MUTUAL BENEFIT SOCIETIES 1890 TO 1907. '^'xxr.o, [Source: The annual reports of the societies.] Adriatic society. Mediterranean society. Sicilian society. Total. Year. "Ordi- nary" mem- bers. "Aggre- gate" mem- bers. Total mem- ber- ship. "Ordi- nary" mem- bers. "Aggre- gate" mem- bers. Total mem- ber- ship. "Ordi- nary" mem- bers. "Ordi- nary" mem- bers. "Aggre- gate" mem- bers. Total mem- ber- ship. 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907(a).... 1907(b)... 1907 20,801 21,091 21,418 20,603 19, 788 19, 128 18,605 17,950 17,161 16,465 15,744 15,083 14,525 13,981 13,513 13, 136 12,829 12,602 5.713 5,508 5,148 4,841 4,611 4,369 4,135 3,906 3,681 3,456 3,255 3,057 2,824 2,588 2,356 2,168 2,014 1,909 26,514 27,199 26,506 25,444 24,399 23,497 22,740 21,856 20,842 19,921 18,999 18, 140 17,349 16.509 15,869 15,301 14,853 14,511 18,060 18,061 18,103 18,549 18,936 19,442 20,263 20,301 19,329 18,540 17,923 17,110 16,409 15.878 15,322 14,839 14,404 14,060 13,792 13,399 13,002 12,636 12,193 11,734 11,349 10,970 10,574 10,144 9,690 9,218 8,768 8.360 7,921 7,512 7,171 6,942 31,852 31,460 31,105 31.185 31,129 31,176 31.612 31,277 29,903 28.684 27,613 26,328 25.177 24,238 23.243 22.351 21.575 21,002 2,485 2,459 2.405 2,405 2,444 2,605 2.751 2,743 2,632 2,491 2,347 2,230 2,139 2,039 1,946 1,887 1.845 1,808 41,346 42,211 41,936 41,557 41,168 41,175 41,619 40,994 39,122 37,496 36.014 34.423 33,073 31.898 30.781 29,862 29.078 28,470 27,9C0 28. 210 19,505 18,907 18,150 17.477 16.804 16,103 15,484 14,882 14,255 13,600 12,945 12.275 11,592 10.948 10.277 9.6S0 9.195 8.851 8,478 8,579 00.851 61.118 60,076 59,034 67,9?2 57,278 57.103 55.876 53.377 51,096 48.959 46.698 44.665 42.846 41,058 39.542 38.273 37.321 36.438 36.789 a First six months. The number of employees separated from the service throu.'h dis- abihty, death, resignation or cUsmissal is shown for the mutual beneht societies as far as data were available in the following table Ihe rate of retirement is somewhat lower than that of the member- ship of the pension funds, because there is no provision for regular o d-age retirement and because of the transfer of large numbers of older men to the pension funds. The death rate does not appear to be much greater than for the pension fund membership I 1970 REPORT OF THE COMMISSIONER OF LABOR. MOVEMENT OF MEMBERSHIP IN THE MUTUAL BENEFIT SOCIETIEH, 1902 TO 1907. [Source: The annual reports of the societies.] Number of members — Members lost because of— Society and year. 1902... 1903... 1904... 1905... 1906... 1907(6) 1907(c) In Jan- uary. 33,604 32,505 31,373 30,292 29,434 28, 721 d28,321 Ad- mit- ted dur- ing year. Resignation or dismissal. 14 10 3 8 2 Total. 33,618 32,515 31,376 30,300 29, 436 28,721 28,324 a Not separately reported. 5 First six months. c Last six months; united society. d I„ July Salaries.— For the proper appreciation of the data concernincr the pensions granted it is necessary to get a clear idea as to the average salaries paid, and such data would be meaningless unless given by separate occupational groups. Such data are presented in the fol- lowing table, as far as available, namely, for the Adriatic fund for 1890 to 1903 and for the Mediterranean fund for 1890 to 1901 In the original reports of the Adriatic fund the wages were stated by the day for 1890 to 1892, and in the subsequent years they were stated m computed annual amounts on the assumption of 340 work- ing days per annum. The same method of computation was there- fore used for the earher three years as well. The average earnings of the entire membership of these societies are only about one-half of that of the members of the pension funds This IS partly due to the inclusion of the female employees in the track service who are paid a mere pittance of about $33^ to $35 per annum. But the differences are considerable even if separate groups are considered," which clearly indicates that the lower-paid portion of the personnel held membership in the mutual benefit societies Some increase in the average salary has been noticeable, but not so great as m case of those who belonged to the pension funds. There is practically none as far as the ^lediterranean society is concerned for the years 1890 to 1901, and the increase in the Adriatic society seems to be due mainly to the rapid decrease in the number of em- ployees of some low-paid groups. As the promotion of an employee to a higher group was followed by his transfer to the pension fund, this explains the slow rate of increase of the average salary. CHAPTER VII. workmen's INSURANCE IN ITALY. 1971 MEMBERS OF THE MUTUAL BENEFIT SOCIETIES AND THEIR WERAGE VXVT-AT WAGES, 1890 TO 1903, BY BRANCH OF THE SERVICE ^^^-^^AL [Source: The annual reports of the societies.] Society and year. Adriatic Society: 1890 1891 1892 ■" 1893 1894 1895 1896 1897 1898 1899 .' ■ " ■ 1900 1901 1902 1903 .." Mediterranean Society: 1890 1891 1892...- 1893 1894 1895 1896 1897 1898 ■ 1899 1900 1901 Society and year. Engineers and nrenxen. Mem- bers. 705 771 812 508 450 343 334 275 225 175 112 106 109 107 310 283 358 357 356 345 337 364 333 421 468 505 Aver- age an- nual wages. Train service. Mem- bers. 1177 177 177 177 179 184 185 192 198 207 230 239 243 246 189 185 175 175 177 176 177 177 175 173 172 169 893 893 887 929 952 958 785 701 027 536 480 436 418 376 319 315 322 325 366 440 501 598 706 842 823 Aver- age an- nual wages. S140 143 145 148 149 151 154 156 159 163 169 176 182 187 146 147 148 148 145 144 141 141 140 140 141 141 Maintenance of way (males). Mem- bers. Aver- age an- nual wages. station service. Mem- bers. Adriatic Society: 1890 1891 1892 1893 ------- 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 .".■.'!.'.""| 4'99i Mediterranean Society: ' 1890 1891 1892 ■; 1893 1894 1895 1896 1897 1898 1899 1900 7,195 7,417 7,214 6,960 6,641 6,408 6,254 6,099 5,902 5,717 5,520 5,352 5,175 Aver- age an- nual wages. Office employees, etc. Mem- bers. 6,680 6,525 6,347 6,395 6,206 6,257 6,531 6,031 5,427 4,981 1901 :;:;:;:::::: ifm S138 138 139 142 144 146 148 151 153 156 158 161 166 160 138 138 137 138 138 138 138 139 140 143 145 144 Aver- age an- nual wages. 246 238 236 250 269 267 276 273 282 274 270 285 291 288 389 330 301 260 258 221 306 200 128 130 140 175 $182 184 184 185 184 183 187 188 189 194 196 202 211 215 196 202 202 201 208 216 208 229 252 249 245 259 7,904 $108 7,795 108 7,476 109 7,2^ 110 7,055 111 6,904 111 6,787 112 6,440 113 6,206 114 5,975 115 5.772 116 5,536 118 5,333 123 5,066 125 4.496 111 4.583 111 5,078 109 5.454 108 5,^48 107 6.195 107 6.498 106 6.331 107 6,159 107 6.039 108 5.883 111 5,666 112 Shop employees. Mem- bers. 4,006 4,070 3,992 3,818 3,697 3,589 3,461 3,348 3,248 3,137 2,963 2,845 2,743 2,669 4.805 4,655 4,627 4,536 4,573 4,635 4,951 4,796 4,614 4,513 4,321 4,012 Aver- age an- nual wages. $191 191 192 194 195 197 198 200 202 204 207 210 220 223 203 202 200 200 208 209 207 210 212 216 217 220 Maintenance of way (females). Mem- bers. Aver- age an- nual wages. 663 579 453 428 398 354 322 289 250 213 194 172 149 135 1,202 1.168 1.317 1,431 1.550 1.750 1,095 1,622 1,554 1,476 1.389 1,299 S32 32 33 33 32 33 33 33 33 34 34 34 34 34 35 34 34 34 34 33 33 33 33 33 33 33 Total. Mem- bers. Aver- age an- nual wages. 21,612 21.763 21,070 20,137 19,439 18,817 18,392 17,509 16,814 16,118 15,367 14, 776 14,236 13,674 18.258 17,863 18,343 18,755 19,116 19, 769 20,758 19,845 18,813 18,266 17.580 16,649 $135 137 138 140 141 143 144 146 148 150 152 155 161 164 144 143 140 138 139 137 138 139 140 142 144 145 1972 BEPOET OF THE COMMISSIONEE OF LABOR. ^Statistics of SiCKNEss.-During the period 1891 to 1900 the cernmg the cause of chsabihty, data wJ.ich give a rare and valuahl^ opportuBity to compare the sickness rates and the naturTof dfsea t reliable s ckness statistics by occupations in this country that the presentation of these data is thought to be useful ^' pres" Sed on"r^.*r' '^' f *'^ '^'' ^""^ '"^ ^ ^^^'^ed because presented on a different classification of diseases. As the num- bers upon which the rates are based are not very large (abo^t 30 000 employees for each year), and fo, each separate group vey much smaller It was thought preferable to combine the data L Ihe Dmecl data. The total membership for the nine vears is- F,>r engmeer. and firemen, 16,027; train service, 16,620; mltenance o pZesT ; l^'Zr'' «^'^«^= --^"-e 'of way (femaHm! ployees), 16 370, station service, 97,853; office force, etc., 6,367- shoD SnThT'-orr' *?*''S^!f'««^- ^ "- table the .liff^e t' tween the ordmary" and "aggregate" members is disregarded and all sickness is mcluded, whether compensa ted or not. Ihe variations from year to year are not disclosed in these table. Such variations may be due to purely local or temporal^ causefan i are not important, but rather form a disturbing elemenUn the stud v of sickness rates, except as they might ii.dicai a tendency toward an increase or decrease. ^"ueQcy toward SERVICE. ^^^ ^^^^ YEARS 1892 TO 1900, BY BRANCH OF _ [Computed from the annual reports of the societies.] Causes of disability. EngintHTs and firemen. Cases of disability. Nuinl)er. DISEASES. Per cent of total. Infectious diseases. . Malaria "' General tuberculosis Syphilis Diseases of— Metabolism Nervous system Respiratory system. .'..'.." Circulatory system Genito-urinary system! Digestive svstem .. . Organs of locomotiility. Number. Per cent of total. 6a3 17.5 .4 1.4 .9 12.9 19.4 4.9 28 62.9 32.5 24 5 &3 .9 .6 77,149 32,635 3,259 4,568 1,837 24,170 43,256 11,899 7,096 73,271 59.820 52,318 14,212 1,588 1,890 16.7 7.1 .7 1.0 .4 5.2 9.4 2.6 1.5 15.9 12.9 11.3 3.1 .3 .4 Average per ease. 8.0 11.6 543 21.0 12.1 11.7 13.9 15.3 15.7 7.3 11.5 13.3 10.7 las 19.3 Average per 100 members. 481.4 203. « 20.3 28.5 11.5 150.8 269.9 74 2 44 3 457. 4 373.2 326.4 8a7 9.9 11.8 CHAPTER VII.— WOfiKMEN 'S INSURANCE IN ITALY. 1973 CAUSES OF DISABILITY OF THE MEMBERS OF THE MFmTFi^u axttt . x^ r. Engineers and firemen. Days of disability. 1 . Per cent i Average ■ -'^^'^rage of total. ' per case P^*" ^^0 members. Not in service In service Infectious diseases Malaria General tuberculosis Syphilis Diseases of — Metabolism Nervous system Respiratory system Circulatory system Genito-urinary system.! .' .' Digestive system . . . Organs of locomotion Theskin... Affecting sight Affecting hearing. . . Hernia ACaDENTS, Not In service In service. . «. . Grand total 31,954 DISEASES. Infectious diseases Malaria General tubercidosis Syphilis '" Diseases of— Metabolism Nervous system ..... Respiratory system . . . . Circulatory system.... Genito-urinary system. Digestive system Organs of locomotion. The skin Affecting sight ] ] . Affecting hearing. . . Hernia Maintenance of way (male employees). 23,507 31.967 122 145 324 3,490 8,008 1,030 718 12,585 6,794 7,169 1,660 227 170 Total. 97, 916 161,481 217,593 6,160 2,252 3,516 41,352 108,517 15, 1.37 97,564 88,566 88,606 19,410 2,529 3,185 865,850 17.2 2ai .6 .2 .4 4 4 11.5 1.6 1.1 10.4 9.4 9.4 2.1 .3 .3 92.0 a9 &8 5a5 15.5 ia9 11.8 lae 14 7 ia9 7.8 lao 12.4 11.7 11.1 18.7 as 198.4 267.4 7.6 2.8 43 50.8 13;J.3 18.6 12.3 119.9 108.8 108.9 23.g 3L1 3.9 1.0619 i 1974 EEPOHT OF THE COMMISSION! EE OF LABOR. °Sii=— ™""=^^^^ Causes of disability. ACODENTS. Not in service. In service Total Grand total. DISEASES. Infectious diseases Malaria General tuberculosis Syphilis Diseases of— Metabolism Nervous system Respiratory system Circulatory system Geni to-urinary system. Digestive system Organs of locomotion. . The skin Affecting sight Atfecting hearing Hernia Total. ACCIDENTS. Not in service . In service Total Grand total. DISEASES. Infectious diseases Malaria ]* General tuberculosis .... . . Sjrphilis Diseases of— Metabolism Nervous system '. Respiratory system Circulatory system Genito-urinary system. Digestive system Organs of locomotion . . The skin Affecting sight Affecting hearing Hernia Maintenance of way (male employees). Cases of disability. Days of disability. Number. Per cent of total. 1,625 3,016 4,641 102,557 2,510 2,774 24 5 59 494 909 188 2,720 1,524 459 469 162 28 5 12,:«0 95 130 225 12,655 Total. 42,328 24, 444 303 414 804 7,958 14,048 2,645 1,331 33,127 15,996 15,329 3,507 468 407 163,099 1.6 2.9 Average per 100 members. 2.0 a7 4.5 100.0 5.7 126.0 Number. Per cent of total. Average per case. Average per ICO members. 20,326 54, 144 2.2 5.8 12.5 18.0 25.0 66.5 74, 470 8.0 16.0 91.5 940,320 100.0 9.2 1,155.4 Maintenance of Avay (female employees). 20.0 22.1 .2 («) .5 3.9 7.3 1.5 21.7 12.1 3.7 S.7 1.3 o («)■" 18.4 20.3 .2 .4 3.6 6.7 1.4 19.9 11.1 3.4 3.4 1.2 .2 9&2 90.2 21,150 24, 736 1,383 242 1,110 5,792 14,013 2,675 39,947 15,030 5,653 6,494 2,172 289 108 14.6 17.0 .9 .2 .8 4.0 9.7 1.8 27.5 10.4 a9 4.5 1.5 .2 .1 140,794 97.1 .8 1.0 .7 .9 1.8 100.0 1.6 1,272 2,932 4,204 144,998 .9 2.0 &4 &9 5.8 4&4 1&8 11.7 15.4 112 14 7 9.9 12.3 13.8 la 4 10.3 21.6 11.5 114 22.6 2.9 100.0 1&7 11.5 Station service. 24.1 14.0 .2 .2 .5 4.5 8.0 1.5 .8 1&9 9.1 8.7 2.0 .3 .2 93.0 43.3 302,599 25.0 194,110 .3 14,291 .4 8,169 .8 9,825 8.1 90,629 14.4 195,786 2.7 ;«,030 1.4 21,333 33.8 232.578 16.3 188,841 15.7 196,995 3.6 40,241 .5 4,790 .4 6,898 166.7 1,540,115 17.5 11.3 .8 .5 .6 5.3 11.4 1.9 1.2 13.5 10.9 11.4 2.3 .3 .4 89.3 7.1 7.9 47.2 19.7 a Less than one-tenth of 1 per cent. b Less than one-tenth of a case. 154.7 180.9 10.1 1.8 &1 42.4 102.5 19.6 292.2 109.9 41.4 47.6 15.9 2.1 .8 1,029.9 9.3 21.5 sas 1,060.7 309.2 19&4 14.6 &3 12.2 10.0 11.4 92.6 i;i.9 200.1 12.5 3.3.8 1«. 1 21.8 7.0 237.7 11.8 193.0 12.9 201.3 11.5 41.1 10.5 4.9 16.9 7.1 9.4 1,573.9 CHAPTER VII. workmen's INSURANCE IN ITALY. 1975 CAUSES OF DISABILITY OF THE MEMBERS OF THE MEDITERRANEAN RAILROAD MUTUAL BENEFIT SOCIETY FOR THE NINE YEARS 1892 TO 1900, BY BRANCH OF SERVICE-Continued. Causes of disability. Total. ACCIDENTS. Not In service In service Total Grand total. DISEASES. Infectious diseases Malaria General tuberculosis Syphilis Diseases of— Metabolism Nervous system Respiratory system Circulatory system Genito-urinary system. Digestive system Organs of locomotion. . The skin Affecting sight Affecting hearing Hernia Total ACCIDENTS. Not In service In service Total Grand total 67725°— VOL 2—11- Station service. Cases of disability. Days of disability. Number. ACCTDENTS. Not In service In service ,.. Total Grand total DISEASES. Infectious diseases Malaria General tuberculosis Syphilis Diseases of— Metabolism Nervous system Respiratory system Circulatory system Genito-urinary system. Digestive system Organs of locomotion. . Theskui Affecting sight Affecting hearing Hernia 3,538 8,739 12,277 175,376 Per cent of total. 9,136 102 101 203 9,339 14,778 1,835 95 417 323 3.346 4,745 1,394 700 13,498 6.602 8,038 1,635 156 222 67,784 1,463 6,089 7,552 65,336 2.0 5.0 7.0 100.0 Average per 100 members, 3.6 8.9 12.5 Number. 38,943 145,667 184,610 179.2 1,724,725 Per cent of total. 2.3 8.4 ia7 loao Average per case. Office force, etc. 2,177 2a3 1,995 2L4 19 .2 41 .4 37 .4 497 5.3 885 9.5 209 2.2 126 L3 1,883 20.2 556 6.0 496 6.3 159 1.7 44 .5 12 .1 34.2 3L3 .3 .6 .6 7.8 13.9 3.3 2.0 29.6 a7 7.8 2.5 .7 .2 97.8 1.1 1.1 2.2 loao 143.5 1.6 1.6 S.2 146.7 16,985 19,833 557 763 347 4,899 13,303 2,975 2,650 15,341 7,264 6,240 2,085 462 212 93,916 1,396 1,751 17.5 2a4 .6 .8 .4 5.0 13.7 ai 2.7 15.8 7.5 6.4 2.2 .5 .2 3.147 96.8 1.4 1.8 a2 97,063 loao Shop employees. 22.6 2.8 .2 .6 .5 5.1 7.3 2.1 LI •2a7 10.1 12.3 2.5 .2 .3 88.4 2.3 9.3 35.4 4.4 .2 to .8 8.0 11.4 13 1.7 32.3 15.8 19.2 a9 .4 .5 138.3 117,490 16,802 8,085 10,750 3,912 38,342 80,705 22,563 12,429 95,576 87,314 113,192 20,253 1,840 3,366 632,619 842 11.6 100.0 a 5 14 6 l&l 156.4 18.737 100,147 118,884 751,503 2.5 ia3 15.8 loao ILO 16.7 15.0 9.8 Average per 100 members. 7.8 9.9 29l3 1&6 9.4 919 15lO 14 2 2L0 &1 lai 12.6 lai las 17.7 ia3 ia7 17.3 15.5 16.6 &0 2.2 a2 LI 85.1 L4 25w8 .5 12.1 5.1 1L5 ia7 17.0 ao ia2 L7 17.8 12.7 7.1 n.6 ia2 15.1 141 2.7 12.4 .3 U.8 .5 15u2 12.8 1&4 15.7 sas 148.9 188w7 1,762.S 26&8 31L5 &8 12.0 5.5 76.9 208.9 46l7 41.6 24a9 114 1 98.0 32.S 7.3 as 1,47a 1 2L9 27.5 4a 4 ia4 1,624 6 28L3 4a2 ia4 25.7 a4 9L8 19X2 540 2as 22a9 209.1 271.0 4a6 44 &1 ia9 I 1,514 8 449 23a8 2847 11.5 I 1,799l5 -31 1976 BEPORT OF THE COMMISSIONER OF LABOR. CAUSES OF DISABILITY OF THE MEMBERS OF THE MEDITERRANEAN RAILROAD SERVICE — Concluded. Causes of disability. DISEASES. Infectious diseases Malaria General tuberculosis Syphilis Diseases of— Metabolism Nervous system Respiratory system Circulatoiy system Genito-urinary system. Digestive system Organs of locomotion. . The skin Affecting sight Affecting hearing Hernia All employees. Cases of disability. Days of disability. Number. Total. ACCIDENTS. Not In service. In service 103,853 C8,207 tKi9 1,378 1,860 19,376 34,397 6,915 6.398 80, 277 38,, 550 37,923 9,168 1,161 967 Per cent of total. Average per 100 members. 410,579 2a 5 15.5 .1 .3 .4 4.4 7.8 1.6 1.6 18.2 &7 &6 2.1 .3 .2 93.2 37.8 24 9 .2 .5 .7 7.1 12.6 2.5 2.3 29.3 141 13.9 as .4 .4 Number. 150.0 757, 302 528,339 35,527 29,754 22,477 221,866 487.988 96,538 98,500 676, 702 472,661 494, 134 105,826 12,720 16,459 Per cent of total. 3.W6,793 17.1 12.0 .8 .7 .5 5.0 11.0 2.2 2.2 lao ia7 11.2 2.4 .3 .4 Average per case. A verage per 100 members. 89.5 7.3 7.7 S4 7 21.6 12.1 U.5 14 2 140 15.4 7.2 12.3 lao u.5 ILO 17.0 27a 7 193.0 13.0 10.9 S.2 81.1 178.3 35. 3 3&0 210.7 172.7 18a 5 3a7 ■ 46 6.0 9.6 1,445.7 Total Grand total. 8,240 21,789 30,029 1.9 49 &8 440,608 100.0 3.0 8.0 11.0 IGl.O 03,943 809,080 466,023 4,422,816 ^2 &3 11.8 16.9 10.5 15.5 35.4 134 9 170.3 100.0 10.0 1,616.0 A few of the most important data of this table may well be empha- sized here. The number of cases of disability per 100 members was 161, and the number of sick days per 100 members 1,616, or 1.6 cases and over 16 days of sickness per member per annum. ' These exceedmgly high rates may partly be explained by the unhealthy climatic conditions in some parts of Italy; the high frecjuency of malaria and other infectious diseases seems to pomt m that du-ection. How much the liberal sick benefits act to cause malingery and fraud it is, of course, impossible to say. Accidents are responsible only for a small part of the loss of time. Of all cases of temporary disability only 6.8 per cent were due to accidents and 93.2 per cent to sickness, the average duration of the accident cases, however, bemg 15.5 days, as against 9.6 days for sick- ness, so that accidents were responsible for 10.5 per cent of the loss of time. • General infectious diseases, malaria, and I CHAPTER VII. workmen's INSURANCE IN ITALY. 1977 The most important deductions are to be made from the compari- son of the data of the seven separate groups. The sickness rates vary greatly, the highest being sho\^Ti by the engine service (engineers and firemen). Their occupation is, there- fore, not only the most hazardous as far as accidents are considered, but also the most injurious to the health of the employees. The second group, tram service (conductors, picket inspectors, trainmen, and brakemen), comes a close second, followed in a descending order by the station service (lower grade employees in stations, warehouses, and offices, such as watchmen, lampers, oilers, cleaners, and similar occupations, but not the workmen in the shops) and office employees. The lowest sickness rate is shown by the service of maintenance of the way (trackmen, gatemen, etc.), and it is interesting to note that the average number of cases of sickness is lower for the female employees of this class, though the somewhat longer duration of each case of sickness reduces this difference when the number of days of sickness per 100 employees is considered. The injurious effect of the railroad business upon these employees of either sex is slighter, and then- life in the open country gives them a lower sickness rate even than the much more highly paid office employees. On the whole the same classes of diseases are conspicuous in all the groups, namely, infectious diseases, malaria, and diseases of the digestive system, except that the female employees show a very high rate of genito-urinary diseases, including the specific female disorders; nevertheless very interesting differences may be noticed on close examination of the data. Thus malaria is much more frequent among the maintenance-of-way service and the office employees, many of whom are permanently located in malarial regions, while the employees of the shop, train, and engine ser\ice show a much lower rate of malarial illness. SjT)hilis and genito- urinary diseases are most frequent among the engineers and firemen, and trainmen (disregarding the high rate of diseases of the latter- class among female employees, due to special reasons) and much more frequent than among the persons in station service and in the maintenance-of-way group, a result of the irregular habits of em- ployees, who are frequently obliged to stay away from home, while the trackmen, etc., are not subject to such influences. In the class of nervous diseases, and again in the diseases of respiratory organs, of organs of locomotion, of the skin, and of the organs of the sight, the engineers and firemen show the highest rates, followed closely by the trainmen, indicating the deleterious effects of exposure and mental and physical strain inevitable in these occupations. 1978 EEPOBT OF THE COMMISSIONER OF LABOE. One reason why the figures for sickness as shown in the preceding table are so high is that the total duration of the treatment and not the ac ual loss of time was given. For comparative purposes, there- fore, the following is mtroduced, in which only such illness as le.l to actual loss of time is considered. The data extend from 1890 to 1900, inclusive, but no data were pubUshed for 1892 and 189.3 Ihe table also gives a comparison between one year and another. Ihe two classes of membership are kept separated, so that a com- panson between them is possible. The sickness rates are found to fluctuate very materially between one year and another, the minimum average being 115.2, "the maxi- mum average 134.7, and the average loss of tune from 12.3 to 18 I days per person. But no tendency to an in<;reased sickness rate or ionn°K T '" "^"^'f ^^1«- 0° the contrary, if the very high rate of 1900 be disregarded, the tendency seems to point throughout the pre- ceding decade toward a decreasing sickness rate and loss of time A comparison of the sickness rates of the "ordinary" and "aggre- gate members fails to disclose any very pronounced difference, though the treatment of these two groups by the mutual benefit societies was very much different. The "or.Unary" members paid on a per diem basis as was shown above, received in addition to all medical, surgical, and pharmaceutical assistance also a daily sick benefit of one-half their daily wage. The "aggregate" members did not receive this benefit from the mutual benefit societies, because their salaries being fixed on a monthly or annual basis, were not discontinued during illness. During eight of the nine years for which data are available, the rate for the "ordinary "J members was higher, but for some years the difference is very small For the entire period, the rate for the "aggregate" members was 117.6 per 100 employees, and for the "ordinary" members 126.2 per 100 employees. This comparison is not very conclusive, however, in view of the difference in the occupational distribution of these two groups. When comparisons by groups are made the sickness rates for ordmary members are found to be very much higher among the engmeers and firemen, the train service and the service of main- tenance of way, which may be due to the fact that the "aggregate" members represent on the whole higher-paid employees, many of whom were paid a monthly or annual salary, and so lost no time on account of illness. CHAPTER VII. workmen's INSURANCE IN ITALY. 1979 CASES OF ILLNESS CAUSING LOSS OF EARNINGS AND DAYS LOST BY MEMBERS OF THE MEDITERRANEAN MUTUAL BENEFIT SOCIETY DURING THE YEARS 1890, 1891, AND 1894 TO 1900, BY BRANCH OF SERVICE AND YEAR. [Source: The annual reports of the society.) Branch of service and year. ' OBDINAEY ". MEMBERS. Engineers and firemen: 1890 1891 1894 1895 1896 1897 1898 1899 1900 ; Train service: 1890 1891 1894 ■ 1895 1896 1897 ' 1898 1899 1900 Maintenance of way (males): 1890 1891 1894 ■ 1895 1896 1897 1898 1899 1900 Maintenance of way (females): 1890 1891 1894 1895 1896 1897 1898 1899 1900 Station service: 1890 1891 1894 1895 1896 1897 1898 1899 1900 Office force: 1890 1891 1894 1895 ;■ 1896 1897 1898 1899 1900 ;; Shop employees: 1890 1891 1894 1895 1896 1897 1898 1899 1900 Cases of illness. Days lost because Average of illness. mirabero members ' Number. Per 100 members. Number. Per 100 members. 382 1,176 307.8 11,495 3,009.1 297 874 294.3 8,240 2,774.4 377 880 233.4 8,409 2.230.5 350 784 224.0 7,368 2, 105. 2 341 765 224.4 7,320 2,149.3 351 770 219.4 7,146 2,036.2 388 590 152.1 6,130 1,579.9 422 660 156.4 5,855 1,387.4 482 849 176.1 8,350 1,732.4 396 734 185.4 7,237 1,828.0 347 1,044 300.9 9,743 2,807.8 354 rn 219.5 6,516 1,840.7 346 768 222.0 6,524 1,884.7 403 917 227.6 8,033 1,993.6 470 885 188.2 7,842 1,668.0 621 1,010 162.6 8.519 1,371.8 716 1,078 150.6 9,187 1,283.1 849 1,467 172.9 14,275 1,681.4 4.383 4,835 110.3 57,030 1,301.2 4,639 4,370 %.3 40,442 891.0 6,617 6,785 120.8 58,962 1,049.5 6,022 7,225 119.0 59,131 982.1 6,346 7,632 120.2 66,970 1,065.2 6,415 7,173 111.8 59,840 932.8 6,237 7,033 112.7 62,074 995.3 6,094 6,551 107.5 56,788 915.5 6,942 7,266 122.3 66,001 1,120.8 1,142 573 50.2 7,449 €52.3 1,185 547 46.2 6,601 567.1 1,491 1,124 75.4 13,822 9'27.0 1,650 1,225 74.2 14,306 867.1 1,722 1,393 80.9 15,906 923.8 1,658 1,145 69.1 14,578 878.8 1,588 1,082 68.1 13,700 862.7 1,515 l.(W4 68.9 12,964 865.7 1,433 1,057 73.8 13,480 940.7 6,495 8,507 13L0 92,697 1,427.2 6,603 10, 115 153.2 100.040 1,515.1 6,251 9,295 148.7 92.236 1.475.5 6,231 6,265 100.5 86,832 1.393.7 6,394 8,920 139.5 91.603 1,432.3 6,281 8,325 132.5 86,699 1,380.0 5,630 6,902 122.6 76.194 1,353.3 5,089 6,992 137.4 65.794 1.292.9 4,651 7,692 165.4 74,677 1,606.6 422 510 120.8 5,943 1,408.3 360 303 84.2 3,439 955.3 272 296 108.5 3, -223 l,l»l.9 239 191 79.9 1,920 803.5 264 294 114.4 3.030 1,147.6 253 204 80.6 2,215 865.6 169 100 59.2 996 589.4 130 84 64.6 725 557.7 154 143 92.9 1,615 1,048.7 4,840 6,326 130.7 85,857 1,773.9 4,730 6,091 128.8 79,354 1,677.7 4,574 6,671 145.8 79,856 1.745.9 4,604 6,903 149.9 75,485 1,639.1 4,793 6,221 129.8 69,328 1.146.2 4.873 6,181 126.9 63,802 1.309.0 4,686 6,057 129.0 66,655 1,419.4 4,574 5,447 119.1 60,815 1.329.6 4,412 6,426 145.6 69,985 1,586.2 ^T 1980 BEPOBT OF THE COMMISSIONEH OF LABOR. J^O^m^ND 1S,4 TO IW,, BY BKANCH OrSEKvlcE'fND ^EA^-^n^^L^"^"* MEMBEBS— concluded. Total " ordinary " members: 1890 1891 ;; 1894 ■ 1895 * 1896 1897 ■; 1898 1899 1900 AGGBEOATE" MEMBERS. Engineers and firemen: 1890 1891 1894 1895 1890 1897 1898 1899 1900 "'.'.'.'.." Train service: 1890 1891 1894 1895 1896 1897 1898 1899 1900 '.'.'.'.'.'.'. Maintenance of way: 1890 1891 1894.. ■; 1895 :.::::: 1896 1897 1898 1899 1900 '.'.'.'.['.'. Station service: 1890 1891 1894 1895 1896 1897 1898 1899 1900 "'.[" Office force: 1890 1891 1894 1895 1896 1897 1898 1899 1900 ...'!."."!."."." Total "aggregate" members: 1890 1891 .;'; 1894 1895 1896 1897 1898 1899 1900 Average number of members. Cases of illness. 18,060 18,061 18,936 19,442 20,263 20,301 19,329 18,540 17,923 1,462 1,432 1,486 1,452 1,410 1,380 1,343 1,284 1,225 1,531 1,493 1,4(50 1,415 1,377 1,341 1,290 1,232 1,171 3,874 3,753 3,389 3,282 3,175 3,074 2,970 2.861 2,738 6,3C3 6,170 5,340 5,178 4,965 4,786 4,593 4,390 4,083 562 549 518 407 422 395 378 377 473 13,792 13,399 12, 193 11,734 11,349 10,976 10,574 10, 144 9,690 Number. 22,661 23,344 25,827 2;J,361 2«i, 142 U4,683 22,774 21,856 24,900 2,860 2.951 2,899 2.872 2.394 2,174 2.401 2.077 2,203 2,163 1.822 1,847 1.698 1.491 1.307 1.393 1,285 1,437 3,970 3.140 3.186 2,547 2.664 2,499 1.968 2, 526 2,609 9.108 7,155 6.475 6.192 5.524 5,254 6.641 5,466 5.596 757 634 324 304 291 233 269 201 448 18.858 l5,tK)2 14,732 13,613 12,364 11,467 11,672 11,555 12,293 Per 100 members. Days lost because of illness. Numl*er. 125.5 129.2 136.4 120.2 128.6 121.5 117.8 117.9 138.9 195.6 205.8 195.1 197.8 169.7 157.7 178.8 161.8 179.8 141.3 122.0 126.5 120.0 108.2 96.0 108.0 104.3 122.7 102.5 83.7 94.0 77.6 83.9 81.3 66.3 88.3 95.3 143.1 116.0 121.3 119.5 111.3 109.8 122.8 124.6 137.1 134.7 97.3 62.5 74.7 69.0 59.0 71.2 53.3 94.7 136.7 116.4 120.8 116.1 108.9 104.5 110.4 113.9 126.9 Per 100 mwnbers. 267,708 247,859 263,014 251,566 262,199 242.122 234,368 211,128 248,983 31.468 33,653 32, 164 29,5;i9 26.486 26.922 27.307 27 174 26,5«7 20,9.13 18, 4N1 18,447 20,130 17.003 15,377 15,9.38 15, 896 17,3»6 46, 564 37,862 35.2MI 33,777 33,208 33, 17S 24,285 31. iU 32,979 101,112 77,281 72,962 71,149 61,037 61,796 61,897 06,040 69, am 5,996 5,9;iy 3,6-20 3,556 3,364 3,680 2,638 2,282 4,563 206,073 173,216 162,474 158,151 141,698 140,959 132,065 142,806 151,061 1,482.3 1,372.3 1,389.0 1,294.1 1.293.7 1,192.0 1,212.0 1,138.8 1,389.2 3, 152. 4 2,346.8 a, 164. 5 2,034 1,878 1,951 2,033 2, 116. 2, 170. 1,367.3 1,237.9 1.263.5 1,423.0 1,277.0 1,129.0 1,235.5 1,290.3 1,484.7 1,202.0 1,008.9 1,041.0 1 . 029. 8 1.045.6 1.079.0 817.7 1.098.0 1.204.5 1.589.1 1.252.5 1,366.3 1.374.9 1.229.1 1.291.0 1,347.6 1,504.3 1,703.3 1.066.9 1,081.8 698.8 873.8 797.1 933.1 697.9 605.3 969. G 1, 494. 2 1,292.8 1,532.5 1,348.4 1,249.3 1,283.0 1,349.0 1,407.8 1,559.9 CHAPTEB VII. WOBKMEN's INSURANCE IN ITALY. 1981 CASES OP ILLNESS CAUSING LOSS OF EARNINGS AND DAYS LOST BY MEMBERS OF THE MEDITERRANEAN MUTUAL BENEFIT SOCIETY DURING THE YEARS 1890, 1891, AND 1894 TO 1900, BY BRANCH OF SERVICE AND YEAR-Concluded Branch of service and year. ALL MEMBERS, 1890 1801 1894 1895 '; 1896 1897 1898 1899 1900 ■ Average number of members, 31 31 31 31 31 31 29 28 27 ,852 ,460 ,129 ,176 ,612 ,277 ,903 ,684 ,613 Cases of illness. Number. 41.519 38.946 40,559 . 36,974 38,506 36,150 34,446 33,411 37,193 Per 1,00 memlMas. Days lost because of illness. 130.3 123.8 130.3 118.6 121.8 115.5 115.2 116.5 134.7 Numb^. I PerlOO iiuembers. 473,781 1.487.4 421,075 1,338.4 425,488 1,366.8 409.717 1,314.0 408,897 1,277.8 383.081 1,225.0 366,333 1,225.0 353.934 1,233.9 400,034 1,81L2 Pensions.— The total number of current pensions of the mutual benefit societies are shown as far as data are available in the following table. The average pension from 1901 to 1907 is seen to be only $81.71, and in the earlier years even smaller. In judging of the amount it is necessary to point out that the averages were materially influenced by the very small widows' and orphans' pensions. As has ah-eady been explained, the mutual benefit societies did not grant any new pensions to widows and orphans from 1891 to 1904, inclusive, and the current pensions had been granted by the Alta ItaUa Raih-oad Mutual Benefit Society prior to the reorganization in June, 1890. These pensions were exceedmgly small, averaging usually $18 for widows and S7 per annum for orphans. The number of these pensions was rapidly declining, the widows' and orphans' pensions granted since 1905 being much larger, though not any too large, even considermg the Itahan standard of livmg. Another considerable class of very small pensions is found in those granted to the "aggregate" members, in order to increase their pen- sions received from the pension funds to 365 fire ($70.45). All these factors influence the average amount of the pensions paid by the mutual benefit societies. The average pension of a member within recent years was over $90, and in the Mediterranean fund over $100. The seeming drop m 1907 is due to the fact that the '^ supplementary" pensions of "aggregate" members are not stated separately, but together with the pensions of the "ordinary" members, which decreases the average. 1982 KEPOET OF THE COMMISSIONER OF LABOE. NUMBER AND AVERAGE OF PENSIONS PAID BY THE MUTUAL BENEFIT SOCIETIES IN SPECIFIED YEARS, BY SOCIETY AND YEAR. SOCIETIES [Source: The annual reports of the society.] Society and year. Pensions paid to— 'Ordinary" members. Adriatic society: ^ 1890 1891 1892 1901 1902 1903 1904 1905 1906 1907 ;; Mediterranean society: ' 1890 ^ 1891 '"" 1892 1893 1894 ■" 1895 ;■.■■" 1896 1897 1898 ' ■ 1899 ." 1900 1801 1902 1903 1904 1906 1906 1907 ;;; Sicilian society: 1901... 1902 1903 1904 1905 1906 1907 ;;;;; Total societies: 1901 1902 1903 1904 1905 1906 1907(c) 1907(d) Num- ber. 1,648 1,897 2,392 3,489 3,605 3,749 3,756 3,742 3,664 a 3, 776 1,262 1,535 1,642 1,776 1,837 1,903 1,933 1,966 1,9% 2,035 2,048 2,106 2,120 2,145 2,227 2,235 2,201 o2,395 631 650 668 692 659 635 628 6,226 6,375 6,562 6,675 6,636 6,500 o6,799 o6,841 Aver »ge. 162 66 72 88 88 88 89 89 90 • 87 74 83 87 91 93 94 95 95 97 96 98 99 '99 99 100 101 101 a 93 59 60 60 61 63 69 o69 89 89 89 89 91 91 o87 a 89 "Aggregate" members. Num- ber. 75 92 101 152 153 150 146 140 136 C) 116 129 136 144 147 151 168 179 205 217 239 244 243 237 237 231 220 (ft) Aver' age. Widows. tn 11 11 9 9 9 9 9 9 (ft) 13 13 13 13 13 13 13 13 13 13 12 12 12 12 12 12 12 (ft) Num- Aver- ber. 3% 396 387 383 371 356 (ft) ft) 11 11 11 11 11 11 (ft) (ft) 249 241 228 147 138 130 124 147 216 225 510 493 460 437 416 395 383 371 334 323 304 286 279 273 261 287 349 371 age. Orphans. 3 18 24 433 417 403 385 437 583 620 697 S19 19 19 18 18 18 18 25 34 37 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 21 31 33 Num- Aver- ber. age. 17 15 13 Total pensions. Num- ber. Aver- age. $6 6 6 4 10 11 15 11 10 8 6 6 6 3 3 1 1 1 I 53 49 51 18 18 18 18 23 33 35 38 25 28 26 6 7 7 7 7 7 7 7 7 7 7 7 3 14 14 22 29 32 o Including pensions to "aggregate" members. " Included m pensions to "ordinary" members. 7 25 26 67 31 31 24 29 30 19 1,989 2,245 2,734 3,788 3,896 4,029 4,026 4,033 4,026 4,012 1,903 2,168 2,248 2,365 2,406 2,455 2,490 2,519 2,538 2,576 2,592 2,637 2,642 3,655 2,725 2,756 2,784 2,780 631 650 668 692 662 654 653 7,056 7,188 7,352 7,443 7,451 7.464 7,445 7,605 $54 59 65 82 83 83 84 84 84 84 55 64 68 73 75 77 77 78 79 80 80 82 82 83 84 85 85 84 59 60 60 61 63 68 69 80 80 81 82 83 83 83 83 « First six months. * Last six months; united society FinaUy, it must be pointed out that women (in the service of maintenance of way) constituted a certam proportion of the pen- sioners because in the Alta Italia Raih-oad Mutual Benefit Society women were granted pensions until after the reorganization of 1890 since which they received lump-sum benefits only. These pensions to women, which were proportionate to their sal- aries, were very small and influenced the average for the pensioners tor some years the pensioners could be separated by sexes, and the pensions for each sex are shown in the following table: CHAPTER Vll. workmen's INSURANCE IN ITALY. 1983 NUMBER AND AVERAGE OF PENSIONS PAID TO "ORDINARY" MEMBERS OF THK 6?tS;^™ ''''''''^'' BENEFIT SOCIETY, 1893 TO 1903, AND OF THE MEDITERRANEAN MUTUAL BENEFIT SOCIETY, 1891 TO 1906, BY SEX. ^r-i^iXi^KKA.Nt.AN [Source: The annual reports of the societies.) Society and year. Adriatic society: 1893 1894 1895 1896 1897 J898 1899 1900 1901 1902 1903 Mediterranean society: 1891 1892 • 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1908 1904 1905 1906 Pensions paid to "ordinary" members. Males. Females. Total. Number. 2,114 2,333 2,447 2,573 2,741 2,822 2,981 3,182 3,313 3,433 3,589 1,300 1,417 1,561 1,626 1,702 1,738 1,775 1,815 1,860 1,880 1,949 1,971 2,007 2,093 2,118 2,099 Average. S84 85 87 89 90 90 90 92 92 92 91 95 98 101 102 103 103 103 104 104 104 105 105 104 105 105 105 Number. 237 232 219 213 202 194 190 185 176 170 158 235 225 215 211 201 195 191 181 175 168 157 149 138 134 117 102 Average. , Number. ! Average. $17 17 17 17 17 17 17 17 17 17 17 21 21 21 21 20 20 20 20 20 20 20 20 20 20 20 20 2,351 3,565 2,666 2,786 2,943 3,016 3,171 3,367 3,489 3,503 3,747 1,535 1,642 1,776 1,837 1,903 1,933 1,966 1,996 2,035 2,048 2,106 2,120 2,145 2,227 2,235 2,201 177 57 81 81 87 SI n M S5 95 97 96 97 99 99 99 100 101 101 In view of the great differences in salaries a better understanding of the pensions granted by the mutual benefit societies is obtained by studymg them by separate branches of the service. The following table shows the number, amount, and average of pensions granted each year by the Adriatic Mutual Benefit Society from 1890 to 1903 and by the Mediterranean Mutual Benefit Society from 1890 to 19oi, by the main groups of railroad employees. The number of pensions granted to employees in the first, second, and fifth groups (engineers and firemen, trainmen, and oflice em- ployees) were so small that it was not thought necessary to show them separately. No invalidity pensions were granted to the female employees as the constitution provided only for lump-sum benefits. The pensions appear to have been larger in the Mediterranean society due to higher wages paid by the Mediterranean RaUroad In both societies a tendency to smaller pensions is noticeable, thoucrh the fluctuations from year to year are considerable. ^^ The comparison between the various occupational groups is particularly important. The shop employees receive larger pensions ■I 1984 BEPORT OF THE COMMISSIONER OF LABOR. I ^ than either the employees in the maintenance-of-way class or in the station service. This is partly due to higher wages and partly, probably, to longer service. t J> ^^^rSf," ^'^^ AVERAGE OF PENSIONS GRANTED EACH YEAR BY THE ADRTAtip [Source: The annual reports of the societies.] Society and year. Adriatic society: 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 '.'.'.'.'.'.'. Mediterranean society; 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 ." 1900 1901 Pensions granted each year to— Maintenance-of- way employees (male). Num- ber. 123 169 320 66 i 130 ! 100 103 138 , 104 ; 135 1 136 , 117 116 200 78 90 75 68 49 52 39 47 52 56 47 67 Aver- age. $78 75 75 78 70 74 78 72 74 73 78 71 69 70 94 96 91 89 89 80 81 84 72 74 82 70 Station and yard service employees. Num- ber. Aver- age. 96 93 199 89 118 78 66 94 47 96 92 93 117 105 104 161 88 64 38 68 57 60 SO 80 56 56 S96 101 96 102 101 101 101 90 92 99 105 98 94 87 111 109 100 101 112 95 102 99 97 96 90 96 Shop em- ployees. Num- ber. 110 59 70 50 07 62 85 09 55 74 125 76 50 51 87 94 51 Ills 47 4:^ 40 37 59 27 77 84 Aver- age. All other. Num- ber. S132 136 142 115 133 133 148 124 129 124 130 122 119 126 152 141 143 148 146 141 156 147 157 142 137 146 6 7 21 17 7 10 12 6 8 6 15 7 14 8 13 16 16 8 6 11 10 3 5 8 11 8 Aver- age. $132 120 120 136 137 120 142 150 12» 105 134 132 127 118 142 148 1&3 145 143 137 141 10.3 100 120 95 119 Total. Num- ber. 335 328 610 222 322 250 266 307 214 311 368 293 297 3f54 282 361 233 24 S 140 170 146 147 16*$ 171 191 21.1 Aver- age. $102 91 91 100 96 99 109 91 94 94 104 94 90 84 120 116 111 120 117 106 107 105 112 97 107 108 Lump-sum Benefits.-Iii case of retirement because of disability before fifteen years of membership, the employee received only a lump-sum payment, as explained above, rage death benefit in case of such early death was naturally very small. Thus in 1896 these 35 families received only $1,855, or only $53 per family while 31 families of members dying at the age of 50 or OTer received $4,426, or $143 per family. NUMBER AND AVERAGE OF LUMP-SUM BENEFITS PAID TO FAMILIES OF nFPFAQvn MEMBERS BY THE ADRIATIC MUTUAL BENEFIT SotlETY, fs^ t"i9^ AND B^^^^^ [Source: The annual reports of the societies.] Lump-sum benefits paid to families of— Society and year. Maintenance- of-way employees (males). station-serv- ice employees Shop em- ployees. All others. Total. Num- ber. Aver- age. Num- ber. Aver- age. Num- ber. 1 1 Aver- age. Num- ber. Aver- age. Num- ber. Aver- age. Adriatic society: 1890 44 57 64 59 56 69 60 42 42 43 46 46 43 36 62 63 53 49 56 77 59 52 54 59 57 65 S83 78 79 70 74 71 83 71 67 82 73 92 100 103 68 67 64 65 69 72 68 62 69 83 73 84 66 59 54 53 45 53 43 49 61 57 50 54 60 44 59 41 55 64 48 39 51 36 43 47 49 39 $80 93 84 86 83 107 87 114 103 111 124 126 136 143 89 70 84 72 83 87 no 88 109 101 113 119 22 24 24 29 16 29 20 27 22 16 31 23 22 15 29 41 46 38 32 33 29 31 48 45. 37 32 1150 146 160 155 154 154 156 175 159 150 167 165 196 191 121 127 126 141 139 159 132 140 176 210 213 196 12 5 7 14 5 12 11 9 7 8 11 11 8 10 5 9 6 4 7 7 1 4 11 7 13 15 $92 73 97 92 92 94 148 165 129 155 113 157 161 179 112 114 85 200 97 74 226 107 133 112 98 136 144 145 149 155 122 163 134 127 132 124 138 134 133 105 155 154 IGO 155 143 156 140 123 156 158 156 151 1891 $92 1892 95 1893 95 1894 93 1895 90 1896 100 1897 101 1898 117 1899 102 1900 108 1901 116 1902 124 1903 136 Med iterranean society : 1890 140 1891 87 1892 86 1893 89 1894 90 1895 91 1896 94 1897 98 1898 91 1899 " ""■ 118 1900 123 1901 ' ""' 119 121 CHAPTER VII. workmen's INSURANCE IN ITALY. 1987 Until 1905, in case of death of pensioners, the family of the deceased .was not entitled to the continuous pension, but only to a lump sum. ^The minimum of such lump-sum benefit was, according to the con- stitution of 1902, four times the monthly benefit of the pensioner. As the following table indicates, the average amount of this benefit varied since 1893 between $36 and $73. It did not represent, there- fore, more than a funeral benefit and a small sum to tide over the first difficulties of the situation. By the law of 1905, embodied in the society's constitution of 1907, the widows of pensioners receiving their pensions since 1905 were granted the continuation of the pen- sion. Data concerning the application of this paragraph are not available. NUMBER AND AVERAGE OF LUMP-SUM BENEFITS PAID TO FAMILIES OF DECEASED PENSIONERS BY THE ADRIATIC AND BY THE MEDITERRANEAN MUTUAL BENEFIT SOCIETIES, 1890 TO 1903. [Source: The amiual reports of the societies.] Lump-sum benefits paid to families of deceased pensioners by — Year. Lump-sum benefits paid to families ol deceased x>ensfoners by — Year. Adriatic society. Mediterranean so- ciety. Adriatic society. Mediterranean so- ciety. Number. Average. Number. Average. Number. Average. Number. Average. 1890 1891 1892 1893 10 18 34 («) («) («) (a) $112 104 79 3 16 29 39 25 32 41 $85 142 100 62 73 50| BO 1897 1898 1899 1900 1901 1902 1903 48 59 64 76 74 96 120 $58 45 52 36 46 38 46 41 43 44 60 60 («) («) fl9 M M » m 1884 1895 1896 a Not reported. Finances.— The general review of the finances of the three mutual benefit societies for the period of 18 years since their first reorganiza- tion in 1890 very plainly shows their financial weakness. The reor- ganized funds started on January 1, 1890, with a surplus fund of $1,863,702, accumulated in the preceding period when their retire- ment benefits were rather small. But as the average age of the mem- bers increased and the number of retirement benefits grew the annual surplus decreased, and by 1892 was changed to a large and growing deficit. Thus between 1892 and 1905 more than two-thirds of the assets of the mutual benefit societies had dwindled away. Only the material increase in rates in 1906 had evidently saved these funds from financial difficulties. The causes for this appear more clearlv in the following tables, which give the financial reports for the years 1902 to 1907: ' t I' I IS:' i .. f 1988 REPORT or THE COMMISSIONER OF LABOR. FINANCES OF THE MUTUAL BENEFIT SOCIETIES, 1890 TO 1907 [Source: The annual reports of tlie societies.] Society and year. 1890... 1891... 1892... 1893... 1894... 1895... 1896... 1897... 1898... 1899... 1900... 1901 . . . 1902... 1903... 1904... 1905... 1900... 1907 (a) 1907(6) 1907.... Income. 1607,286 651,786 602,604 618,666 621, 007 631,404 640,669 632,058 618, 957 617.318 619.548 618, 004 680,164 647,884 678,854 658, 379 921,750 577,523 465,125 1,042,648 Expendi- tures. $438,774 511,717 622,963 643,941 647,381 687,918 709,489 729,991 743,441 750.402 804.849 818,511 803,409 811,332 803,079 812,832 810,709 403,235 420,345 823,580 a First six months. Surplus. Deficit. $168,512 140,069 $20,859' 25,275 26, 374 66, .M 4 6.S,«20 97,933 124,484 133, 084 18.\301 200,507 123,345 163,448 124,225 154, 453 111,041 174,288 44,780 219,068 Assets at end of year. $2,032,214 2, 172, 283 2, 151, 924 2,126,649 2, 100, 275 2,043,761 1,974,941 l,877,a« 1.752,5'i4 1,619,440 1,434,139 1,233, 6?<2 1,110,3M7 946,939 822,7)4 668. 2«H 779, » 12 953,590 998, 370 998, 370 b Last six months; united fund. The sources of revenue of the mutual l)enefit societies, as of the pension funds, consist of the following main sources: Contribution, of the members contributions of the railroads, regular sources of revenue established by the constitution, and interest and profits from mvestment. As appears from the following tables, the mem- bers contributions in 1906 constituted about one-fourth (25 2 per cent) of the total, the direct contributions from the railroads over one-h.alf (51.7 per cent), the indirect contributions, includiua the reimbursements for accident compensation, nearly one-fifth (IHS per cent) and the income from interest and investments was very small only 3.7 per cent, because of the low reserve. In view of the rapid decline of the reserve, the necessity for increasing the current revenues of the funds wa^ keenly felt. The lower level of the wages of those employees who held membership in these .societies, as compared with that of the members of the pension funds, previously describe.l, pre- cluded the possibility of increasing the members' contributions, and the railroads were therefore forced by law to increase their share. On October 21, 1902, these contributions were increased from 3 per cent of the salaries paid to 4.2 per cent, and on January 1, 1906 fur- ther mcreased to 8.15 per cent, i. e., nearly .loubled. As a result the total contributions of the railroads more than doubled between 190'> and 1906, notwithstanding the decline in the memberslii.,. In 190'' these direct contributions of the raiboads represented only 26 6 per cent, or a httle over one-fourth of the tot.d income, as against 51 7 per cent in 1906. The study of the table giving the expenditures .by mam items explams the reason for these difficulties. Pensions represented the main item, though officialK- designated bv the name of continuous benefits, and though they were given onh' for retire- ment because of invalidity, and not for old age alone. The total expenditures for retirement pensions did not show such a rapid mcrease as m the case of the pension funds, but they were stUi CHAPTER VII.— WORKMEN 'S INSUBANCE IN ITALY. 1989 increasing in 1906, being in that year 7 per cent greater than in 1902 Ihus, notwithstanding the existence of these mutual benefit societies ,o«,"T ^^ ?^^^^' ^""^ ^^^ discontinuance of new admissions since 1897, the societies have not yet reached the state of equilibrium where the granting of new pensions would be entirely offset by the discon- tinuance of old ones. As was shown in one of the preceding tables the number of current pensions was still increasing in 1907 and so' WM the average amount of pensions because of the increase ii wages While the latest mcrease of the railroad contributions from 4 2 per cent to 8.15 per cent of the salaries did overbalance the deficit and produce a shght surplus, the mutual benefit societies were not yet put upon a sound financial basis thereby. For with the continued increase of pensioners and the decrease of active members, producin.^ a fall in the revenues, the small surplus was likely to be a.'ain con- verted into a deficit in the near future. If a technical balance of the mutual benefit societies were struck, it would show that the members through their long membership had acquired rights for invalidity pensions, thus creating a large actuarial liability with practically no reserve to cover it. At the same time a new source of liabilities was created by the provision of the law of 1905 establishing pensions for widows of members dying after July 1, 1905, and for widows of pen- sioners who had received their pensions after that date In the earUer years the expenditures for pensions for widows were on account of old pensions granted before January 1, 1890, to widows of members of the old Alta Italia Mutual Benefit Societv, mer-^ed partly with the Adriatic and partly with the Mediterraneai, Socie"tv But since 1905 the number and cost of widows' pensions show an increase. If it were not for the entire change of the pension system the cost of widows pensions would rapidly have assumed large proportions. INCOME AND EXPENDITURES OF THE MUTUAL BENEFIT SOCIETIES, W. TO 1907. [Source: The annual reports of the societies.] INCOME. Source of income and item of exi)endilure. Contributions of members: "Ordinary" members.. "Aggregate" members. 1902. Total. Direct contributions of raiboad Indirect contributions of railroad: Unclaimed overcharges on freight Fines ■ Repayments for accidents. '. Another $175,846 23,369 Total Interest and investment. Another Grand total . 199,215 181,065 87,381 25,163 28,838 11,209 1903. $203,526 22,661 226, 187 1904. $199,018 21,439 1905. 1906. I 1907.(a) $197,043 20,541 $211,647 21,079 220,457 152,591 146, 747 546 680.164 243,991 57,299 17,814 27,395 11,024 113,532 63,682 492 238,851 73,558 18,597 35,881 7,552 217,584 232,726 $108,249 10.703 118,952 13.5, 588 64,130 19,528 647,884 678,854 236,473 54,383 17, 169 25,807 8,054 105, 413 65,543 33,366 658, 379 476, 144 102,707 18,809 36,773 10,223 340,306 54,500 12. 7tV4 22.941 4,612 168,512 33,760 10,606 921,750 94,817 18,072 1,186 ft 573.333 J For first six months only, origiii^'freport.^' *''''' ^''' '^° '^' '""'^^ ^^«^'° «° P=^«« 19^8; the figures are given as shown in the 1990 REPORT OF THE COMMISSIONER OF LABOR. INCOME AND EXPENDITURES OF THE MUTUAL BENEFIT SOCIETIES. 1902 TO 1907- Concluded. EXPENDITURES. Source of income and item of expenditure. Temporary disability benefits: Sick benefits Physicians' fees, expenses ' etc! Medicines, appliances, etc.. 1902. Total. Retirement benefits: Pensions Lump sums Total. 123,208 34,391 20,603 1903. 89,188 31,214 13,625 178,202 557,130 8,650 Death benefits: Pensions to widows Lump sums to families of members Lump sums to families of pensioners" Funeral benefits.... 565,780 Total. Payments to pension fund All other Grand total. 7,186 36,670 6,914 2,806 134,027 567,058 6,186 1904. 87,668 25,304 10, 162 1905. 572,244 53,576 4,979 872 803,409 6,771 35,819 8,384 2,818 53,792 50,175 1,094 123,134 690,964 6,094 110,070 22,319 10, 177 19<)6. 105. 909 22.890 U.397 1907. o 142,566 588,130 2,834 596,058 500,964 6,393 35,608 11,277 3,041 56,319 24,079 3,489 811,332 803,079 a For first six months only. ^This total is $4,190 less than the total shown 6,413 38,359 11,175 3,273 140,196 601,850 3,703 66,006 7,419 4,077 77,502 294,241 1,409 605,653 295,650 14,617 H), 576 7,442 3,055 69,220 17,637 2,445 36,690 11,357 17.913 812,832 810, 709 11,217 1,913 2,982 1,633 17,745 8,007 141 * 399, 045 report. on page 1988; the figures are given as shown in the original PEOVIDENT INSTITUTE OF THE STATE BAILEOAD. The financial organization of the provident institute resulting from the consohdation of the three separate provident institutes of the railroad operatmg companies was very much different from that of the Older institutions, and the reasons for these differences are impor- tant, having been forced by the impossibility to construct a true actuarial ba^is for the activity of a pension and benefit institution on those older Imes. It will be necessar3S therefore, to give the details of these differences in the financial organization As was stated in a preceding section, the ])rovident institute com- bined the functions of both a pension fund and a mutual benefit society, or, m otli6r words, old-a^e and invahdity insurance with sick- ness insurance and medical aid. The element of mutuahty, while not altogether elimmated, was very considerably reduced, the main activity taking the form of compulsory accumulation of individual accounts, to be converted under certain conditions either into annul, ties or lump-sum benefits. The membership in this institution was compulsory for all perma- nent employees of the raih-oads who entered the service after Dec em- ber 31, 1896, except that for employees appointed at an a^e over 45 years such membership was optional. The institute was divided into two sections the first being limited to employees receiving monthly or annual salaries and the second to those receiving daily CHAPTER VII. — workmen's INSURANCE IN ITALY. 1991 wages, the two sections thus corresponding to the pension fund and the mutual benefit society. The second section, like its prototype, combined sickness insurance and medical aid with old-age invalidity insurance and widows' and orphans' pensions. In case of promotion to a monthly salary, members of the second section were transferred to the first section. SOURCES OF INCOME. As in distinction to the two older institutions described, the benefits of this institute depended primarily upon the individual accounts. It IS necessary to analyze these accounts and aU sources of revenue before stating the amounts of pensions and other benefits. These sources of revenue are stated in the constitution as follows: (1) The regular deductions from the earnings of the members. (2) Extraordinary deductions. (3) Voluntary contributions of the members. (4) Contributions of the raih-oad administrations. (5) Special assigned sources of revenue. (6) Extraordinary revenues, such as legacies, donations, etc, and (7) Revenues from investments of funds. Briefly, these sources may be classified into tliree groups : Employ- ees' contributions, the railroad management's contributions, and miscellaneous revenues. In detail, these sources of revenue differed for the two sections of the institute. The regular contributions of the members were identical with those m the pension fund and the mutual benefit society— i. e., 5.5 per cent of the salary for the first section and 3.5 per cent for the second sec- tion. The extraordinary contributions contained the deduction of one-twelfth of each annual increase of salary and, besides, an initiation fee of one-tenth of the annual salary at appointment. As each member's account was an individual one, the members were permitted to increase these a MS.'i Arrears, etc :u)3 Total 51.559 122,057 17,682 4,243 2,031 151,469 167, 68-* 42.052 11,793 3,071 212,435 222,751 46.123 27,869 13,266 195, 256 205,912 42,394 42.635 22,957 177,987 267, 107 70,873 56,193 90, 192 QS 44") Railroad contributions 214,499 43,487 33, ties 17,999 other sources of revenue under the law (6) Investments All other Total 197. 572 376,069 522, 444 509.154 662,352 40.S <)Q6 EXPENDITURES. Physicians' expenses, etc 5,414 2,402 13,586 41 204 1,057 9,074 3,20:3 27, 172 586 1,342 13,016 8,840 3,6&4 41,400 893 2,539 30,665 9,439 4.634 53.469 1.178 15,804 44, 521 9,639 5,240 50,262 981 6,537 62,323 3,794 2 189 Meaicines and appliances Sick benefits 38,936 K28 Funeral benefits Repayments of contributions 2,938 11,062 1, 196 Payments to first section Another * Total 22,704 54,393 88,021 129,045 134,982 60,943 a First six months only. fc Including fines imposed on employees, proceeds of sale of unclaimed articles found on railroad property, {jroceeds of sale of railroad tariffs and time-tables, unclaimed overcharges on freight, and excess sums ound in cash accounts of stations. For the financial statement of the united provident institute data are available only for the first six months, July 1 to December 31, 1907. CHAPTER VII. workmen's INSURANCE IN ITALY. 2001 The income and expenditures of both sections are showTi for that period in the following table. Eliminating the transfers from the second to the first section, the income for the six months amounted to $904,332 and the expenditures to $58,117, increasing the assets during these six months by $846,215, or an average of about $22 per average member. As the total contributions of the members for these six montlis were only $272,608, the accumulations appear to be three times as great, notwithstanding the cost of sick benefits and other benefit payments. By the end of 1907 the total assets of the first section increased to $2,789,741 and those of the second section to $2,583,801, making a total of $5,373,542. INCOME AND EXPENDITURES OF THE PROVIDENT INSTITUTE, JULY 1 TO DECEMBER 31, 1907. [Source: The annual reports of the Institutes.] Income. Expenditures. Source. Members' contributions: Normal PajTTienis at rein- statement, etc All other $127,945 1,158 39,766 Total. Railroad contributions: Normal Arrears All other Total. Other legal sources of rev- enue («) Investment Another Total income ex- clusive of trans- fers Transfers from second sec- tion Grand total. First section. 168,869 186,102 '39,'7f.6' Second section. $78,716 741 26, 181 105.638 225,868 183,296 34, 126 26,181 Total. Item. $206,661 65,947 Repayment of individ- ual accounts: To discharged em- ployees To families First section 274,507 Total. 3^9.398 34, 126 65,947 From collective accounts: 'To discharged em- ployees To families 243,603 469,471 Total. 15,636 44,694 11,280 466,347 47, 194 42,082 37,999 8,663 437,985 513,541 437,985 57, 718 82,693 19.943 Medical expenses. Funeral expenses. Sick benefits 904,332 47, 194 951,526 Total expendi- tures exclusive of transfers Transfers to first secti4 2,807,018 619, 100 2,634 15,697 14,466 15,945 28,5 36,540 2,809,937 6 819,390 14,466 155,256 17,502 219,068 910, 491 690,825 22,058,650 779,302 1,879,250 1,892,976 124,720 23,333 22,076,152 998,370 67,293 12,566 59,452 2, 789, 741 2,583,801 3,426,118 48,742 192,013 35,899 96,277 3,799,049 1,837,886 26,610,178 28,448,0&l 67725°— VOL 2— li- as c Liabilities. 2008 EEPOET OF THE COMMISSIOJSTER OF LABOR. The combinations of all these institutions into one statistical picture, as is done in this table, brings out several interesting facts. Of the total income of $5,636,938, only $1,525,550, or 27.1 ))er cent, was contributed by the employees. The railroads directly con- tributed $2,531,008, or 44.9 per cent, of the total revenue, but in addition various sources of revenue, which may be considered indirect contributions of the railroads, were created by the law, yielding altogether $309,092, or 5.5 per cent, so that the entire contribution of the railroads may be put at 50.4 per cent of the total income. The mcome from investments brought in $1,112,086, or 1^.7, leavmg only $159,202, or 2.8, for other sources of revenue. The total expenditures for the entire year amounted to $3,799,048, leavmg a surplus of $1,837,885. By far the greatest share of the expenditures of the pension funds and of the mutual benefit societies was claimed by pension payments, wliich amounted to $3,426,115, or 90.2 per cent of the total. The other benefits in case of retu-ement or death, paid in lump sums, constituted only 1.3 per cent; sick benefits, 5.1 per cent; expenses of medical service, 0.9 per cent; and all other expenses, 2.5 per cent; tliese latter are mostly bookkeeping accounts, representing transfers from the mutual benefit societies to the pension funds, and from the second sections of the provident institutes to the first sections. The total assets of the three institutions on December 31, 1907, amounted to $28,448,055. But in addition to that, large accumula- tions to the credit of the older pension fund and the mutual benefit society were deposited with the governmental Bank of Deposits and Loans. It will be remembered that in accordance with the law of 1885 there was a two percent tax levied upon the gross receipts (1 per cent in case of the Sicihan railways), in order to cover the deficit of the pension funds up to 1885. In addition, the laws of April 1 5, 1897, and March 29, 1900, created surtaxes, descril)ed above. Up to March 31, 1900, these amounts accumulated in the treasuries of the pension funds, but on that date, in accordance with the latter law (March 29, 1900), they were transferred to the Bank of Deposits and Loans. On that date they amounted to $3,508,612. Further payments accordmg to these laws were made into the Bank of Deposits and Loans. The revenues under the older law of 1885 stopped on June 30, 1905, when the contracts for private operation ran out and the railroads reverted to the State, and on that date they amounted to $1,848,902. The total revenue from the later taxes of 1897 and 1900 amounted on December 31, 1906, to $11,489,415, so that the total payments into the Bank of Deposits and Loans, reached $13,338,317. The actual accumulations were materially larger because of the interest on the securities in which these deposits ii ^ w i CHAPTEE VII. — workmen's INSURANCE IN ITALY. 2009 were invested according to law. On December 31, 1906, the total accumulations amounted to $14,967,783, and on December 31 1907 to $17,234,436. To this must be added the accumulations of a special fund created by the law in 1885 to cover the deficits which have accrued in the old Southern (Meridional) Pension Fund, merged durmg the reorganiza- tion of the raih-oads and their pension funds, partly with the Adriatic and partly with the Sicihan funds. This fund was constituted bv contributions from the Southern Railroad Companv, which continued to operate the Adriatic system. Until June 30, 1905, contributions were made to the fund from time to time by the Southern railroad, and since that date the fund grew by accruing mterest. On December 31, 1907, it amounted to $1,891,731, so that the total of these supple- mentary funds amounted on that date to $19,126,167. Together with the assets of the three institutions, $28,448,055, it represented a total accumulation of $47,574,222, of which the mterest, according to the law of July 9, 1908, was made available for the purpose of meeting the pension obUgations according to the law. As, however the Government assumed the entire responsibihty of meeting thii obligation of the pension system, the financial details, important from a fiscal point of view, are immaterial as far as the solvency of the pension system is concerned. ACCUMULATIONS OF SPECIAL FUNDS DEPOSITED WITH THE BANK OF DFPO^ttq AND LOANS FOR THE PURPOSE OF COVERING OLD DEFIcTtS OF PENSION F^V^^ AND MUTUAL BENEFIT SOCIETIES. ^^^^i^a O* Pi!.NSION FINDS [Source: Rapporto sull" Andamento della Cassa Pension! per il Personale delle Fenx,vle Costltuente la Rete Adnatica, 1902 to 1903.] v^suiuenie la Date of receipt. March 31, 1900.... December 31, 1902 December 31, 1903 December 31, 1904 June 30, 1905 December 31, 1905 December 31, 1908 December 3 1,1907. Proceeds of the orig- inal 2 per cent tax (Sicilian fund, 1 per cent). $293, 129 938, 532 1,217,800 1, 589, 154 1,848,902 1,848,902 1,848,902 1,848,902 Proceeds of the sur- taxes es- tablished bv the laws of April 15, 1897, and March 29, 1900. $3, 215, 483 6,331,291 7,511,848 8, 752, 216 9,348,949 10, 052, 801 11, 489, 415 (") Total pay- ments into the Loan and De- posit Bank. $3. 508, 612 7, 269. 823 8, 729, 648 10,341,370 11,197,851 11,901,703 13,338,317 (") Total value of these proceeds, with inter- est ac- crued on deposit In the Loan and De- posit Bank. $3,508,612 (°) C) 10,977,583 12, 749, 265 14,967,783 17, 234, 436 Special fund for meeting the deficits of the Meridional pension fund. («) 8959, 727 1,248.808 1,693,881 («) 1,757,702 1,822.315 1.891,731 Total amounts on deposit with the Loan and Deposit Bank, for the pur- pose of meeting deficit*. («) («) 512,671,464 C) 14,506.967 16, 790. 098 19, 120, 107 o l^ot reported. 2010 REPORT OF THE COMMISSIONER OF LABOR. BIBLIOGRAPHY. Office du travail, Anuuaire 03-1908. Atti parlamentari. Camera dei deputati: Legfslalura XIV, Nos. 75, 75a, 215, 215tt; XV, Noe. 73, 73a; XVI, Noe. 116, 116a; XVII, No. 326: XVIII, Noe. 83, 83a. Atti parlamentari. Senator L^islatura XV, Nos. 207, 207a; XVII, N<)8. 33, 33a; XIX, No. 161a. Bassi, S.r Gli infortuni del lavoro agricolo. Milan<^, 1909. Bellom, Maurice: Les lois d'aesurance ouvri^re a I'etrang^re, II. Assurance contre les accidents, vols. 1-6. Bodio, L.: Etat de la question des accidents du travail en Italie. (Congr^H interna- tional des accidents du travail et des assurances sociales. Berne, 1891.) Calojanni, Pompei: La loi sur les accidents du travail appliquee en Sicilie aux ouvriers des mines de soufre. (Congr^s international des accidents du travail et dos assm-ances sociales. Paris, 1900.) Calojanni, Pompei: Trois anne^s d'application de la loi sur les accidents du travail aux ouvriers les mines de soufre de la Sicilie. (Congr^s international des acci- dents du travail et des assurances sociales. Dusseldorf, 1902.) Cassa nazionale d'assicurazione per gU infortuni degli operai sul lavoro. Sede cen- trale in Milano: (a) Convenzione costitutiva e regolamento generale. Milano, 1889. (b) Legge e regolamento per gli infortuni degli operai sul lavoro. Milano, 1899. (c) Legge e regolamento per gli infortuni degli operai sul lavoro. Milano, 1904. (d) Regolamento dei premii e delle indennit^. Milano, 1898. (e) Regolamento dei premii e delle indenuit^ e tariffe. Milano, 1903. '/, CHAPTER VII. workmen's INSURANCE IN ITALY. 2011 Ferraris, Prof. Carlo F.: Relazione intomo all assicurazione obbligatoriale alle respon- sabilit^ dei padroni e imprenditori per gli infortuni sul lavoro. ( Annali del credito e della previdenza, 1889, No. 22, allegato B.) Ferraris, Prof. Carlo F. : Gli infortuni del lavoro e la legge. (Annali del credito e della previdenza, 1897, No. 31.) Ferraris, Prof. Carlo F.: Das neue italienische Gesetz, betreffend die Betriebsunfalle der Arbeiter. (Archiv fur eoziale Gesetzgebung und Statistik, Vol. XII, 1898 ) Gentilli, Ermanno: Le dernier projet de loi sur les accidenta du travail en Italic. (Congr^s international des accidents du travail et des assurances sociales Brux- elles, 1897.) Infortuni degli operai sul lavoro. Legge, regolamento, regi decreti, etc. (Annali del credito e della previdenza, 1900, No. 40; 1904, No. 55.) SICKNESS INSURANCE. Bagni, T.: Contributo agli studi sulla morbosit^l degli inscritti a society di mutuo eoc- corso. (Annali del credito e della previdenza, 1902, No. 46.) Besso, M.: Relazione sul bilanci tecnichi della society di mutuo soccorso. (Ministero di agricoltura, industria e commercio. Ispettorato generale dello credito e della previdenza. Annali del credito e della previdenza, 1891, No. 23.) Federazione italiana delle society di mutuo soccorso. Manuale per le society di mutuo soccorso. Milano, 1908. Gardenghi, G.: Manuale tecnico per le society di mutuo soccorso. Milano, 1895. Gobbi, Ulisee: Le society di mutuo soccorso. Milano, 1909. Infortuni del lavaro; giurisprudenza giudiziaria. (Annali del credito e della previ- denza, 1905, No. 64; 1908, No. 77.) Lucci, Prof. A.: Considerations sur la loi italienne eur des accidents du travail. (Con- gr^s international des accidents du travail et des assurances sociales. Dusseldorf, Magaldi, Dr. Vincenzo: lEtat des travaux l^gislatifs en Italie pour la protection des ouvriers et I'assurance contre les accidents du travail. (Congr^ international des accidents du travail et des assurances sociales. Milan, 1894 ) Magaldi, Dr. Vincenzo: Sur la recente phase legislative de la protection des ouvriers contre les accidents du travail en Italie. ((^ongr^s international des accidents du travail et des assurances sociales. Bruxelles, 1897.) Magaldi, Dr. Vincenzo: La l^gislacion italienne des 'accidents du travail et son appli- cation. 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(Archiv tur soziale Gesetzebung und Statistik, 3 Band, 1890 ) Tavole della frequenza e duraU delle malattie osservate nelle persone inscritto a society di mutuo soccorso. (Annali di statistica. Roma, 1892.) I 2012 REPORT OF THE COMMISSIONER OF LABOR. Monzilli,M.:Relazioneinton,oall'applicazionedeIlaIeggel5apriIe,1886Bullesociet4 Norme e tab'elle fondamentali perl' ordiuamentoe per i bilanoi tecnichi delle eocieU di mutuo Boccorso. Roma, 1898 eocieia ma attie preeso gh .scntti nelle aocieta di mutuo soccoreo. (Annali delTredito e della previdenza, 1903, No. 51.) """ ut-i treauo e MATERNITY INSURANCE. Ministero di agricoltura, industria e commercio. Ufficio del lavoro: Baai tecniclu di una caesa di matemiU. Roma 1904 tecniclu ^'"mate'ltren'lf r''°'^^"*"f'^^' """^^ ""' P'^™>"'"- «* ^'a^istance pour la matemite en Itahe. (Congrfe mtemational des accidents du travail et des assu- rances Bocialea. Paris, 1900.) "<»v«i ki ues assu- Scodnik, Henri: L'assurance matemelle et les caisses pour la maternity rPnn^ri. .«ona. des accidents du travai, et des a^ur^'nces Lt.t"' Roml'^S Scodnik, Henri: L'institution de caisses pour la maternity en Italic (Congr^s inter national des accidents du tra^.il et des assurances sociales. DoIomS 1902 ) OLD AGE AND INVALIDITY INSURANCE. '"'"atT;^iale'^'' ^'un'" '-^''^'-V''"- (^•""'" '^'^ <^-"--"« -^ >" P-'^vo- yancesociale R^unis par le mimatJ^re du commerce. Paris, 1903 ) Cassa nazionaledi previdenza per la invalidity e per la vecchiaia degU operai- (a Statute m esecuzione della legge (testo unico) 30 maggio, 1W7 d^f Tr'° '^'^"'^"^ t^riffe per la determinazione delle quote di ren- dita vitaUzia per gli operai inscritti. W Assicurazionepopolari di rendite vitalizie "^trufn""^"!!- ^f "*"' ^^'^ het^eSend d'ie National-Ver.u herungskasse ^d^^^'^^f^' '- ^^'>«'-- <^-^^v far soziale Oesetz'S:^ rancroTLef ViennSs IlT^'"''^' '" "^"'^"'^ "" ''^^"' «' "^ -"" ^ 'lSr^*)r''f ■^'^''"^^'"^"P""''*"^''"'^'*^ ^' P»"' '" vieillessedesouvrie.^ en PaSlwT'' -^-national des accidents du (luvail et des assurances sS:s Magaldi, Df- Vincenzo: D^veloppment de la ca!s,.e aationale de pr^voyanoe nour d'rccfd L drt^':;!":'!!^"^ '^ """^^^ ^" ''^"^ (Con^.., iX^ationa aes accments du travail et des assurances Bociale.-. Dflsseldorf 1902 ) Rava Prof . Luig. : La ca^ nazionale di previdenza per 1' invaliditre la v^chiaia dedi operai mrelazione delle legislazione estere. Bologna, 1902 ^ ilrlrl^v^'- ^''*''°°' ™"" ""odificazione dello atatuto e del regolamento dell on '^.^!'''°^^^' ^' P'«-denza per la invalidity e per fve ITa a degh opera.. (Mmistero di agricoltura, indu.. CHAPTER IX. WOEKMEK'S INSITEANCE IK EITSSIA. WTRODDCTIOH. .»lT^l''"^'if "!' development of the Russian Empire dates nracti to L^T. ' '*'^,"' '''' emancipation of the serfs^^ 186? "^tZ . to that date manufacturing was conducted mainly in artisans' shZ Tbor Tr^nf" 'f "^"^ ''^'^ «-«*-g mo'itremplo^ed S agricultural country. \he ru^;^^, .tZ^^^Z^lZ of 1897, constituted 108,811,626 out of a total of 125 640 o'l nr «« « per cent. Of the 33,201,495 pei^ons gainfuUy emplold ' is ;,:5 ^7 or 55 per cent, were engaged in agriculture Together ^t'hS ptpltn! *'^^ "''''''''''''' ''''''•'''' - ''■' Pe-entfThti'S hafblrlJuter^iSi'Vf '*^/^^" ^'j^ ^''^^ "^ «"-- -^ustry lias Deen quite rapid. The urban population increased from 7 293 i fii Ter c?nuri897.''^ *"^' ^^^''^""'^' ^"^ ^«^«' *« lM28:To5f:r 'S According to the later census, the total number of persons emnlov^H in manufacturing and mechanical pursuits in 1897 wTs g^Stg and in transportation 714,745, making a total of 5,884 664 for lie llie table following shows the number and n^r .L/ t engaged in the various industries, accost thTcerut If fZ""^ N.MB.H ... r.. cK.r o™-if.«^.«- f ----- — ISource: P,.n.ier Racensement General de la Population de I'EmpIre de Bosde, ,897., Industry. Persons engaged in gainful occupations. Agricultural pursuits Professional service Personal service... Manufacturing and" mechanical pursuits. Transportation . ^op^ercial pursuits.!! Another Total. 16,159,118 78G, 673 2,958,070 4,187,826 692, 629 1,331,581 824,631 26,940,528 60.0 2,086,169 202 140 1,817,283 982,093 22,116 299,408 851,758 2.9 11.0 15.5 2.6 4.9 3.1 lOaO 6,260,967 33.3 3.2 29.0 15.7 .4 4.8 13.6 100.0 67725' 18,245,287 988.813 4, 775, 353 5,169,919 714,745 1,630,989 1,076,389 55.0 3.0 14.3 15.6 2.1 4.9 5.1 33,201,495 Members of families of persons engaged in gainful oc- cupations. 75, 456, 277 1.552,436 2,748,943 7,115,643 1,236,265 3,364,398 964,564 93,701,564 74.6 2.541,249 2.0 7,524,296 6.0 12, 285, 562 1,951,010 4,995,387 2,640,953 9.8 1.5 4.0 2.1 100.0 92,438,526 125, WO, 021 100.0 -VOL 2—11 38 2087 2088 REPORT OF THE COMMISSIONER OF LABOR. The industrial development of Russia, as of any other country, manifested itself not only in the increase of the number of persons employed in industrial occupations, but also in the substitution of large manufacturing establishments for small, independent under- takings and the consequent growth of the wage-earning classes. The problem of workmen's insurance concerns itself mainly with the wage-earner and not with the independent ])roducer. For this reason the report pubhshed in 1906 by the Russian Government con- cerning the number of wage-earners in Russia, though based upon the data of the census of 1897, is of great importance. In the follow- ing table are shown the total number of persons employed as wa^^e- earners in various branches of mining, manufacturing, transportation, commerce, agriculture, and unskilled labor and service. NUMBER AND PER CENT OF WAGE-EARNERS OF EACH SEX. BY INDUSTRIES, 1897. [Source: Ministerstvo vnutrennykh diel. Chlslennost 1 Sostav rabochikh v Rossli na osnovanii dan- nykh pervoi vsoobshchei perepisi naselenia Rossilskoi ImperU 1897 goda. St. Petersburg, 19«.Hi.J Industry. Mininp: Miners. . Smelters . Total. Manufacturing: Textiles Animal products Woodworking Metal working Minerals Chemical products Beverages- Alcoholic liquors Other Food products Tobacco Paper and printing Instruments Jewelry, etc Clothing Building Carriages and wooden boats . other Total. Transportation: Post, telegraph, and telephone. Water transportation Railroads Carting other Total. Commercial pursuits: Commerce Hotels, restaurants, etc. ... Liquor trade Cleaning, laundry work, etc. Total Total wage- earners. 163, 738 42,638 206, 376 Males. Number. 155,020 40,940 Per cent. 94.7 90.0 Females. Number. 8,718 1,098 195, 9G0 95.0 10. '116 Percent. 5.3 4.0 5.0 530, 138 74,270 173, 043 370, 933 83, 138 61,094 38,723 4,220 194, 703 27,994 52, 175 8,030 25, 767 326, 470 345, 724 8,793 65, 357 2,390,572 5,463 44,141 175, 246 118,423 25,756 310, 439 71,246 166, 295 364, 720 74, 469 45, 247 36,918 4,035 183, 941 10, 020 46, 550 7,722 25,213 256, 8S9 345, 724 8. 708 54; 029 2,012.825 58.0 95.9 96.1 98.3 89.6 741 95.3 95.0 94.5 37.9 89.2 96.2 97.8 78.7 100.0 99.7 82.7 369, 029 118,787 76,970 17,336 42,495 255,588 5,439 43,885 162, 784 117,761 25,391 355, 2C0 113,171 72, 206 15,270 il,751 212, 458 84.2 99.6 99.4 92.9 99.4 98.6 219, 099 3,024 6,748 6,213 8, 609 15,847 1,805 185 10,762 17, 374 5,625 308 654 69,581 25 11,328 96.3 95.3 93.9 .18.1 27.7 83.1 377, 747 24 256 12, 402 602 305 41.4 4.1 3.9 1.7 10.4 25.9 4.7 4.4 6.5 62.1 10.8 3.8 2.2 21.3 .3 17.3 13, 709 5,616 4,704 2,(m 30, 744 43, 130 15.8 .4 .6 7.1 .6 1.4 3.7 4.7 6.1 11.9 72.3 16.9 t ? CHAPTEB IX.— WORKMEN 'S INSURANCE IN RUSSIA. 2089 NUMBER AND PER CENT OF WAGE^EARNERS OF EACH SEX. BY INDUSTRIES. Industry. Agricultural pursuits, etc.: Agriculture Cattle raising [[ Forestry Other rural industries Fishing and hunting Total Common (unskilled) laborers Servants: In institutions In factories, etc House servants (janitors, etc.) Domestic servants Total Grand total Total wage- earners. Males. Females. 2,132,899 411,817 84,714 57,990 35,203 2,722,623 Number. 1,467,302 341,596 83,404 44,820 32,331 1,969,453 1.094,848 167,2^'0 226, 743 162,053 1,55(),599 809,426 142, 700 205,720 160,089 268, 086 2,112,635 776, 601 9,151,671 I 0,330,983 Percent.' Number. 68.8 82.9 98.5 77.3 91.8 665,597 70,221 1,310 13, 170 2,872 72.3 Percent. 31.2 17.1 1.5 22.7 8.2 753, 170 73.9 285,422 85.3 90.7 9a 8 17.2 24,534 21,023 1,964 1,288,513 36.7 1,330,034 27.7 2a 1 14.7 9.3 1.2 82.8 69.2 2,819,088 c;i.3 Z(XS According to these census figures the wage-earners in Russia num- bered over 9,000,000, of whom about 2,400,000 were employed in manufacturing, 200,000 in minmg, and 370,000 in transportation, giving a total of nearly 3,000,000 for wage-earners in industry, in the narrower sense of the word. Agricultural laborers numbered over 2,700,000, the servant class over 2,100,000, unskilled labor nearly 1,100,000, and wage-earners in commercial pursuits (not includin<^ salaried employees) over 250,000. "^ As a matter of fact this number is not as great as it would be but for the limitation put in Russia upon the designation '' wage-earner" (zahocU). A great many persons who would be so designated in this country are classed with salaried employees in Russia, as, for instance, many railway employees. On the other hand, a comparison between the number of wac'e- earners and the total number of persons employed in various occu- pations demonstrates the existence of a very large number of small independent producers in various branches of industry, as, for instance, in textile, woodworking, metal working, clothing,' etc. This comparison, as made in the following table, shows that in'man- ufactures in general only 48.3 per cent of the persons occupied were wage-earners, and more than one-half were independent producers. 2090 EEPOKT OF THE COMMISSIONER OF LABOR. PROPORTION OF WAGE-EARNERS TO TOTAL NUMBER OF PERSONS EMPLOYED BY INDUSTRIES, 1897. ' [Source: Premier Recensement General de la Population de I'Empire de Russie, 1897. Relev6 General, St. Petersburg, 1905, Vol. II. Chislennost i Sostav Raboehikh v Rossii, St. Petersburg, 190G. Vol. 1.) Industry. Mining: Miners . . Smelters. Total. Manufacturing: Textiles Animal products Woodworking Metal working Mineral products Chemical products Beverages- Alcoholic liquors Other Food products Tobacco Paper and printing Instruments Jewelry, etc Clothing Building Carriages and wooden boats. Other Total. Transportation: I'ost, telegraph, and telephone. Water transportation. Railroads Carting and drayage . . Other Total. Commercial pursuits: Commerce Hotels, restaurants, etc Liquor trade Cleaning, laundry work, etc. Total. Agricultural pursuits, etc.: Agriculture Cattle raising Forestry Other rural industries. . Fishing and hunting. . . Total Common (unskilled) laborers. Servants: In institutions In factories, etc House .servants (janitors, etc.). Domestic servants Total Grand total. Number of persons employed. 181,303 47,560 228,863 959,584 154,221 410,126 624, 954 125,781 76,869 48,485 8,740 Si3,7»4 31,485 82,397 23,391 54,570 1,168,865 726,926 14,400 106,468 4. 9.51, 056 46,729 71,057 262, 180 802, 956 31,823 714,745 1,256,330 154,470 84,287 135,902 1,630,989 16.668,134 1.121,828 125,756 1^,807 138,762 18,244,287 1.120,156 167,240 242,011 l«i5, 650 1.578,412 2,153,313 29,043,409 Wage-earners. Number. 163,738 42,638 206,376 530,138 74,270 173,043 370, 933 83,138 61,094 38,723 4,220 194,703 27,994 52, 175 8,030 25,767 326, 470 3*5,724 8,793 65,357 Per cent of persojis employed. 90.3 89.7 2,390,572 5,463 44,111 175,246 118,423 25,756 369,029 118,787 76,970 17,336 42,495 255,588 2,132,899 411,817 84,714 57,990 35,203 2,722,623 1,094,848 167,240 226,743 162,053 1,556,599 2,112,635 9,151,671 90.2 55.2 48.2 42.2 69.4 66.1 79.5 79.9 48.2 66.6 88.9 63.3 34.3 47.2 38.2 47.6 61.1 61.4 48.3 11.7 62.1 (J6.8 :i9.1 80.9 51.6 9.5 49.8 30. 6 31.3 15.7 12.8 36.7 67.4 29.0 25.4 14.9 97.7 100.0 93.7 97.8 98.6 98.1 31.5 a Because of differences In classification this item could not be obtained; it is therefore assumed to be the same as the number of wage-earners. CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2091 Along with the industrial development the problems of protection of workmen against the results of accidents, sickness, and old age have been growing in importance and have commanded increasing attention. The workmen's compensation act of June 2 (15), 1903, embracing all large industries, is perhaps the most important result in the domain of workmen's insurance. It has introduced a system of com- pensation of workmen against industrial accidents within a rather Umited scope. In the field of old-age insurance the existing provisions embrace almost exclusively the individual employees of the State. Of the private employees thus provided for the most important are the railroad employees, for whom old-age pension funds w^ere established in 1888. In view of the extensive undertakings of the Russian Gov- ernment, however, the existing old-age pension funds cover a very large body of industrial wage-earners. The pension fund for govern- ment railroad employees was organized in 1894, the fund for employees of the hquor monopoly in 1900, etc. Very much less has been estabhshed in the domain of provision agamst sickness, though the eariiest social labor legislation concerned itself with the care of the men in factories in case of sickness. Special laws concerning employees of certain state establishments were pro- mulgated early in the nineteenth century, and general provisions in the form of temporary regulations w^ere made in 1866, requiring the factory owners to furnish medical aid and if necessary hospital treat- ment to the sick employees. Thus from the very beginning the problem of medical treatment was separated from that of financial aid during sickness, and the burden of such medical treatment was placed upon the employer. Fairly satisfactory results were obtained in this branch of sickness insurance, but almost no progress was made in the other branch. Thus, the entire situation in regard to workmen's insurance in Russia may be summarized as follows : 1. An accident compensation law of 1903, followed by a series of special law^s for various groups of government employees. 2. The law of 1866 requiring the furnishing of medical treatment in factories (extended in 1886 to mines), and 3. A series of special institutions for old-age and invalidity insur- ance and rehef mainly of government employees. In addition to these provisions for the welfare of the wage-earners, as established by laws and governmental decrees, there is in Russia but little that can be traced to voluntary efforts, either of the employer or of the employees themselves. Witliin the last few years, and especially since the estabhshment of the National Legislature, considerable activity has manifested itself i > 2092 REPORT OF THE COMMISSIONER OF LABOR. in the preparation of legislative proposals for comprehensive insur- ance systems, including all the three main branches of workmen's insurance, against accidents, sickness, and old age and invahdity. Such proposals were published in 1905, 1906, 1907, and 1908, and the last ones were formally introduced in the Duma and await the action of tliis body. ACCIDENT INSURANCE. EMPLOYERS' LIABILITY. The system of workmen's compensation in Russia grew out of the development of the idea of employers' liability. A consideration of the principles governing the Hability of employers for injuries sus- tamed by workmen in the course of their em])loyment is important, not only for historical reasons but because employers' Habihty still remains the only means of redress for workmen not included under the provisions of the law of 1903. Until the promulgation of this law the Russian code did not mclude any special law to determine the general principles of the employers' liability for industrial injuries. Such measures as passed prior to 1903 were intended for rehef of definite classes of wage-earners, pri- marily state and railroad employees. The responsibility of employers for results of industrial accidents was based altogether upon the general provisions of the Russian code in regard to general responsi- bility for results of acts committed, whether criminal or not. Accord- ing to article 644 of Volume X, part 1, of the Russian code, a person guilty of committing a crime, whether with or without intent, must compensate for all losses directly caused by his act, and according to article 645 he must also compensate for all losses, even though very remote, if it be proven that the overt act was committed with the intent to cause losses to the victim of the act, while the following section exempts such losses as are caused by accidental acts, without intent and without any negligence. The sections of the code quoted apply only to criminal acts, but the failure to convict the person of any criminal act does not reheve him of the civil habihty for any losses caused by his acts, for this habihty is established by other sections of the code. Moreover, in these sections the civil responsibihty is much broader than that laid down in the sections mentioned above. Section 684 provides that "each person is obliged to compensate for damage and losses caused to any party by his act or omission, even if not criminal, provided he had not been forced to commit that act by demands of law, or of the Government, or in self-defense, or by a combination of circura- stances which he could not prevent." Furthermore, section 687 establishes also the responsibihty of a person not only for his acts, but also for those of his agents, and that of a master for the acts of a servant. CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2093 Taken together, articles 684 and 687 estabhsh the law of hability for injuries in general. They extend as much protection to the em- ployee as they do to the injured outsider, and this feature is the most characteristic one of the general Russian system of employers' Ha- bility. Special legislation in regard to special groups of employees, which will be stated presently, has extended the hability of employers. But any restrictions of the rights of the employees for compensation in case of accidents, as compared with the rights of outsiders, such as the doctrine of common employment or the fellow-servant doc- trine, are altogether foreign to the Russian law. In their application to industrial accidents and to employers' hability to their employees, these basic provisions of the law were considerably influenced by the decision of the Governing Senate, the highest judicial body of the land. According to these decisions the master is responsible for all acts of the servant which have been committed by the latter in the performance of liis duties. The prob- lem of negligence or fault does not enter into the discussion; the hability depending, according to the wording of the law, upon the question whether the accident was preventable or not, only non- preventable accidents forming an exception to the hability. Intent, or fault, or negligence may be important to determine the presence of criminal hability, but some definite act or omission and the pre- ventable nature of the accident are sufficient to establish the civil liability of the employer. Article 687 does not clearly establish upon whom the burden of evidence should fall, simply stating that the person shah not be hable for his act or that of his agent if it shall be proven that the accident was unpreventable. This proof then being a part of the defense, it was established by many decisions of the Governing Sen- ate that according to the general rules of civil procedure the plain- tiff may estabhsh his c laim by proving only the injury, the accident and the specific act of the employer or his agent causing the accident; and that the burden of showing the accident to have been unpre- ventable or that the agent was acting against his orders rests upon the defendant, being evidence to the rebuttal of the claim. In addition to the general liability of a person for the results of his acts or omissions, the Russian code also estabhshes definite principles as to the limits of this hability. After the general fact of hability has been established the same compensation is due whether the act had been a criminal one or not; in other words the amount of compensation does not in any degree depend upon the nature of the act which had caused the loss. In general the compensation must be equal to the loss sustained; therefore the law requires that in case of a fatal accident the person liable for the accident shall give means of support to the widow of the deceased until remarriage, to 2094 EEPORT OF THE COMMISSIONER OF LABOR, the dependent parents until death, to the sons until of age, and to the daughters until marriage, etc.; the person liable for the accident must cover the cost of medical treatment until recovery or death and funeral expenses, cost of support of family and dependents oth index fingers Loss of thumb and index of one hand and index of the other hand Loss of thumb, index, and ring or little finger of one hand and index of the other Loss of all fingers of one hand except index, and the thumb of the other Loss of both thumbs and indexes (o) B. ■WTJST, Loss of wrist \Lef( Stiff wrist joint (Kfi'!'.; Loose wrist joint {Left C. FOREARM. Loss of forearm at elbow joint { Loft Stiff elbow joint at full extension or full flexion {Left'^;. Stiff elbow joint at right-angle flexion {Left Loose elbow joint {Kft^!.; Lnni ted action of wrist {KfJ**;; Limited motion in elbow and wrist joint {ivpft Stiffness of elbow and wrist joint {Left'!^ D. SHOULDER AND ABM. Loss of arm at the shoulder joint or between the shoulder au^l elbow joint {ljR Stiffness of shoulder joint {Eeft^!!! Loose shoulder joint {L«'ft Limited motion in shoulder joint {Lfft^ * Inability to raise the arm more than into a horizontal position ■! -^^^^ ' • • Wrong union of fracture of shoulder blade or collar bone, if resulting in limiting|Right. . the motion of arm \L«'ft — Habitual dislocation of shoulder {Left**!! E. HANDS. Loss of both hands or wrists. XI. Lower Extremities. A. TOES. Loss of big toe Loss of all toes of one foot Loss of heads of metatarsal bones. Per cent of disa- bility. 20 15 35 20 20 10 70 55 65 50 100 50 65 70 80 85 75 65 30 25 40 30 75 65 SO 40 35 25 60 50 25 15 30 20 60 60 75 60 60 50 65 £0 30 20 40 30 20 10 20 10 100 10 25 50 a In cases of loss of several fingers, or phalanxes of several fingers, the loss of the grasping surface of the four fingers put togethor must be taken into consideration. A loss of about one-half of that surface Ls equal to a loss of one-third (33J per cent) of earning capacity. The valuation of the injuries of the hand and wrist must be much higher for workmen employed at trades which demand fine hand work.^ ^- CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2111 TABLE FOR DETERMINATION OF DEGREE OF DISABILITY DUE TO INJURIES CAUSED BY INDUSTRIAL ACCIDENTS— Concluded. Disa- bility num- ber. 117 118 119 120 121 122 123 124 125 120 127 128 129 130 131 132 133 134 135 136 Nature of disal.>Uity. Per cent of disa- bility. -|- XI. Lower Extremities— Concluded. B. FOOT. Loas of foot at the ankle joint or below it Fractures of "os calcis" or tarsal bones Complete immobility of ankle joint of one foot, tho foot being plai-ed at right angle to leg. . Complete immobility of ankle joint, the foot being placed in oblique angle to leg Loose ankle joint C. LEG. Loss of one leg Complete immoblity of the knee joint at extension Complete immobility of knee joint at slight flexion, under obtuse angle Complete immobiUty of knee joint at strong flexion in an acute angle, or over extended . . Loose knee joint Stretched ligaments of knee joint (weakened joint ) Fracture of patella with disarrangement of the apparatus for extension Irregular union of a fracture of leg with shortening of over 5 centimeters [1.97 inches] and Umited motion D. THIGH. Loss of thigh Complete immobility in hip joint in extension of leg Complete immobility in hip joint in flexion of leg Irregular union of fracture of thigh with shortening of leg of over 5 centimeters [1.97 inches] and limitation of motion Failure of fracture of hip to unite (false joint) Loss of both legs or feet XII. Upper and Lower Extremities. Loss of one leg or foot, and one arm or hand 00 40 25 40 65 40 25 SO 60 25 SO 45 75 m 60 50 65 100 100 Note 1. — Full paralysis of extremity or a pari of an extremity is assimilated to its loss; the same is true of immovable joints, cicatricial contraction, chronic ulceration, insufficient covering of bones after amputa- tion, loss of tendons, etc., when leading to complete impossibility to u.se the injured extremity at work. Note 2. — In injuries of lower extremities attention must be paid as to whether working is possible with cane, crutches, etc., and in all injuries as to how far the disabiUty caused may be rectified by means of apparatus and appliances. Note 3.— In multiple injuries, resulting from one accident, the estimate of disability must not be matie by means of a simple addition of the numbers corresponding to individual injuries according to this scale, but with consideration for the circumstances of each case, i. e. , for the resulting loss or reduction of capacity to earn a livelihood from the combined effect of all the injuries together, in connection with the general state of health and nature of employment. In no case must the estimate exceed 100 per cent. Note 4.— Traumatic and other bodily injuries not mentioned in the scale must be estimated in accord- ance with these general considerations. METHODS OF COMPUTING EARNINGS. As the amount of the pension depends upon the annual earnings of the injured workman, the method of determination of these earnings is of importance to the efficacy of the law. The following method is prescribed by the act: The actual earnings of the person injured, as determined by the books of the concern, for the year preceding the day of the accident (or in cases when the workman has been em- ployed less than a year, for all the time of his employment), is divided by the number of days of actual employment, and the average daily earnings thus obtained are multiplied by 260 (considered by this law the average number of working days in a Russian factory). In the case of establishments which normally are not active the whole year, the average daily earnings are multiplied by the normal number of 2112 REPORT OF THE COMMISSIONER OF LABOR. 4 CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 2113 working days for such establishments, but to the product must be added the usual wages of a common unskilled laborer for the differ- ence between 260 and the normal number of working days in tliat es- tablishment. Where lodging constituted ])art of the earnings of the workman, the sum of earnings as computed above must be increased by 20 per cent, and in case of table board its actual cost must be added. In no case must the earnings so computed be less tlian the average wages for unskilled labor for 260 days. The same minimum must be taken as a basis where the mjured workman was not receiv- ing any wages. On the other hand, if it can be proven that the actual ordinary or normal earnings of the injured were greater than the sum computed according to the above rules, these must be taken as a basis. Thus the minimum wage is not definitely established, but is expressed as the average wages for unskilled labor. These averages are determined by the local provincial administrative offices in charge of manufactures or mining, either for the entire province or, when it is thought necessary, for separate districts of the province, ev6ry three years, and separately for either sex in the three age groups: Children (12 to 15 years), youths (15 to 17 years), and aduhs (over 17 years). If the injured is under 17 years of age, his pension is computed at the basis of the wages of a youth, but recomputed according to the wages of an adult when he reaches 17 years of age; when the injured is under 15 years of age, such recomputation must take ))lace twice, when he reaches 15 and again when he reaches 17 jenrs of age. SEITLEMENT OF CLAIMS. In excluding cases of accidents due to gross negligence from the benefits of the law, the question of the cause of accident creates oppor- tunity for disagreements. Even if the justice of the claim is undis- puted, a great many factors evidently influence the amounts of the compensation. The actual amounts are not fixed by any administra- tive process; the law establishes a claim, for the proper determination of which all tliese provisions must be taken into consideration, but the claim is settled either by voluntary agreement or by judicial deci- sion. It is the intention of the law to encourage the former, but in order to safeguard the interests of the workmen, such agreements must be approved by the proper authorities familiar with the law. The following procedure is established with this object in view: Agreements between the injured pei-son or members of his family in regard to the amount of compensation must be in writing, signed by both parties, and certified by the factory inspector. This certifica- cation is in the nature of approval, and the factory or minhig ins[)ector must refuse his certification when the agreement, in his opinion, is obviously and substantially contrary to the requirements of the law. ^t- 4 f* The original copy of the agreement remains with the factoiy or mine inspector, while certified copies are given to each party. An agree- ment thus certified is binding similarly to a private settlement before a justice of the peace Further, the factory or mine inspector must make efforts to facili- tate such agreements. If a voluntary agreement has not been accom- plished, either party may petition the factory or mine inspector for his opinion as to their rights or duties in the case under the law. In such cases the factory or mine inspector may demand additional evidence and ask for a medical examination, and he may suggest the proper conditions for a settlement; but if, notwithstanding his efforts, the two parties can not be brought together, or if the inspector declines to cer- tify to the agreement because an unjust one, he must make a written statement (''act") to that effect, stating the date of the petition, the time, place, and circumstances of the accident, the nature of the bodily injury, the degree of disability, or, in fatal cases, the cause of death, the demands and offer of the respective parties, and, finally, state his opinion as to the merits of the case, i. e., the rights of the injured or his relatives to compensation, and its amount. Both par- ties receive certified copies of this ''act." Cases in which voluntary settlements have failed may be brought to trial before a justice of the peace or the district magistrate {ZernsJci nachalnik). When the injured is a minor, and not living with his parents or guardians, the local court may appoint a guardian. The factory in- spectors may recommend persons for such appointment. Suits may be entered by the injured within two years after the day of the acci- dent, and by his heirs within two yeai*s after the day of the deatli of the injured, as against the 10-year limit in general Russian law, but in computing this time limit, the time elapsing between entermg the case with the factory inspector or district engineer and the day of furnishing the injured party a copy of the factory inspector's "act" is omitted. If both parties have come to a voluntary agreement, either oral or written, but not approved in accordance with the rules above, the injured workman or his family do not lose their right of demanding compensation in accordance with the law, even if moi^e than two years have elapsed, and all the time during which this volun- tary agreement has been effective is left out of consideration. This protects the injured or his family from any settlement which the pro- prietor may agree upon with the view of living up to it only v. ithin the two-year limit. In actions instituted, claims are entered against the proprietor of the establishment, either at the place of the accident, or at the place of residence of the proprietor or at the main office of the establish- ment. Such action may be instituted either after carrying the case 2114 REPORT OF THE COMMISSIONER OF LABOR. through the office of the factory inspector, or without bringing it to the attention of this officer, but the law discourages the latter procedure by depriving the claimant in such cases of his right to receive court expenses. The same rule holds good if the court's judgment is for a compensation no greater than that ofl'ered by the defendant during the preliminary negotiations. But on the other hand the law endeavors to facilitate just claims in many ways; they are free from court fees, must be conducted under a simjjlified mode of procedure, the amount of attorney's fees is strictly regulated, and all contracts for excessive fees are not enforceable. Appeals against the decisions of the judges of the first instance (justices of the peace) may be had to circuit courts and higher courts of appeal; in such appealed cases the lower court, upon request of the plaintiff, may order '^a prehminary award," with or without bonds. .Judgments obtained from the courts under this law have, a preferred claim against the property of the defendant. Private settlements of the cases brought before the court are not binding ucdess they havt^ been sanc- tioned by the court. Private arbitration of cases under this law is prohibited, and decisions of courts of arbitration are not enforceable. REVISION OF COMPENSATION. Further reconsideration of the case is permitted within three years after the compensation has been granted or refused, if after a medical examination, ordered upon demand of either party, changes in the condition of the injured are found to have taken place. Lump-sum settlements, however, can not be changed and are not subject to revision. REGULATIONS AS TO METHODS OF PAYMENT. The allowances and pensions are paid periodically, ns follows: Payment of allowances for temporary disabihty must be made at the same intervals as the payment of w^ages. The time of payment of pensions for permanent disability or death may be arranged for by both parties, but in absence of such private arrangemejit the pay- ments must be made monthly in advance. At the request of the persons receiving compensation, payment must be forwarded to their place of residence at their expense. On the other hand the pensioners must twice a year (in January and July) present to the proprietor of the establishment or to his representative certificates to the effect that they are alive, and in case of widows, that they have not remamed, such certificates to be filled out by police authorities, and unless such certificates are pre- sented the employer may withhold the payments. Such certificates must be given by the police without fee, and are free from stamp taxes. Unless there has been cause for dt »mount for support se«=i-i~Hss;= -40 p^>r^ 2118 REPORT OF THE COMMISSIONER OF LABOR. can not decline to put them in writing as a preliminary to certifica- tion. In the case of a written agreement, acknowledged by a notary, appearance of the agreeing parties is not necessary and the request for certification may come in writing. The inspector must decline to certify settlements by which the employer tries to avoid a direct obligation imposed by the law, or the employee signs away one of his undisputed rights, but before doing so the inspector on his initiative must suggest the changes necessary to obtain certification. With the written consent of both parties he may certify to some provision of the settlements and except others. When requests are made upon the inspector by one party for explanation as to his rights, the inspector jnay ask the other party to appear before him, and failure to appear must be considered as a refusal to enter into a voluntary agreement. The factory inspectors may take the initiative to petition the court for appointment of the guardian for minor claimants. In case of pending voluntary liquidation, or transfer or pubhc sale of an estab- lishment, the inspector must remind the proprietors, orally or in writing, of their obligations under this act, and also inform all the beneficiaries, as far as possible, of the coming change in ownership. They must also inform the ofiicial conducting such liquidation or sale, of the obligations under this law. As defined by the regulations, the duties of the factory and mine inspectors are very broad and complex. Besides being charged with almost all the details of the execution of the law, they are practically made official mediators and conciliators, upon whose work the success of the law largely depends. INSTRUCTION TO THE POLICE. Rules for the regulation of the police authorities in connection with the law were approved by the ministei-s of interior and of war on December 11 (24), 1903. The obligations of the police are mainly limited to making an official record of the accident as soon after its occurrence as possible and gathering at the place of its occurrence all the possible information from the eyewitnesses. These regula- tions to the factory inspectors and the police were also intended to materially improve the statistics of accidents. INSURANCE. Wliile the law establishes the individual liability of the employer, and all proposals to establish a system of compulsory insurance were declared premature, the advantages of insurance were clearly recog- nized and the introduction of a system of compulsory insurance against accidents has only been deferred until a more propitious time. The law tends to encourage insurance not only by permitting it but also by providing that the employer may be entirely reHeved from CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2119 all obligation imposed if he insures his employees in an authorized insurance company under conditions no less favorable than those secured by the law. Both private insurance companies and mutual insurance societies are authorized, but both must conform to the rules as laid down by the minister of interior on December 22, 1903 (Jan- uary 4, 1904). These rules are discussed more fully in connection with the section on private insurance against accidents. SPECIAL PROVISION FOR WORKMEN EMPLOYED BY THE STATE. The industrial undertakings of the Russian Central Government have during the last two centuries been extensive, and the need of compensating the employees of these industrial establishments for results of mdustrial accidents was recognized many years before any steps were taken for a general law to cover private undertakings. CIVIL EMPLOYEES OF NAVY- YARDS. The workmen employed in the navy-yards and their families were among the first to be provided for in case of accidental injuries or death, by the law of October 8 (20), 1862, which remained in force until after the apphcation of the provisions of the general com- pensation act of 1903 to this class of state employees. According to the law of 1862, all cases of disabihty or death caused by acci- dents were compensated without any effort to determine the fault or place the blame. The law was passed 48 years ago, and estab- fished pensions which have remained unchanged. The law preserved the distinction between masterworkmen, journeymen, and appren- tices, with different amounts of pensions to each, according to the following scale: ANNUAL PENSIONS GRANTED TO EMPLOYEES OF NAVY-YARDS, BY CLASSES. [Source: Otvietstvennost predpriminatelei za uvlechla i smert rabochikh, V. P. Litwinov-FalinskiL 1900.] A-nnual pension paid to — Class. 1. For total loss of sight 2. Loss of life, or of two extremities, or such injury as will necessitate con- stant care of injured the rest of his life 3. Loss of one extremity or such Injury as will cause total disability to earn a living but does not necessitate care of injured 4. Injury resulting in disability to continue employment in the navy- yards, but not altogether destroying abUity to earn some wages, though not sufficient for support '. 5 Injury re-sulting in disability to continue in employment in navy-yard, but leaving the victim able to earn a sufficient amount for 8upi)ort at some other occupation 15.45 10.30 Pensions of the fourth and fifth groups were either permanent or temporary, depending upon the duration of disability resulting from injury. When death resulted from the injury the widow received 67725°— VOL 2—11- -40 2120 REPOBT OF THE COMMISSION EB OF LABOB. one-half of the full pension, as indicated above, and each of the chil- dren one-sixth, so that the full pension was granted to tlie family only where there were at least tliree children. Wlien the children remained orphans at the death of the injured workman, each child was entitled to an equal share of the pension, but not more than one- fourth each, so that the full pension was granted only when four orphans remained. The widow was entitled to the pension until death or remarriage, provided she led a sober and moral life, or until she entered a government asylum. Male rhildren received their pension until 14 years of age and female children until 15 years of age; but when crippled or suffering from incurable diseases, and therefore unable to earn a hving, the pension was continued for life. The dependents were entitled to a pension, not only when death resulted from the injury, but in all cases of death of a workman receiving a pension. The procedure was entirely through tlie officers administering the navy-yards. On May 17 (:^0), 1904, the provisions of the law of June 2 (15), 1903, with some modification, were substi- tuted for the law of October 8 (20), 1862, while on March 6 (19), 1906, a special act was passed. STATE MINES AND METALLURGICAL ESTABLISHMENTS. Labor in state mines and metallurgical estabhshments before the emancipation of serfs in 1861 was obhgatory for the peasants of cer- tain mining districts. Since 1857 the obUgation of the State to care for the injured and the invaUd was recognized, though the compen- sation was limited to 2 poods (72.2 pounds) of flour for an adult and 1 pood (36.1 pounds) of flour for a minor monthly, and money pen- sions varying from 1.87 to 72 rubles (S0.96 to $37.08) per annum for the injured workman, from 1.72 to 21 rubles ($0.89 to $10.82) per annum to the widow, and 1.72 to 10 rubles ($0.89 to $5.15) per annum to each daughter. By the law of March 8 (20), 1861, the relations between the state mines and metallurgical estabhshments and the peasant population of the mining districts was regulated anew, and the law provided for mmers' mutual benefit societies for the care of the sick, aged, invahds, widows, and orphans. An amendment to this law stated that in case of death or disability due to an industrial accident, pensions and allowances should be paid from the treasury of the establislmients. This was interpreted to mean that the old provisions of the law of 1857 were to be applied. A suit instituted in 1894 by an injured workman led to a decision that the law of 1857 was inapplicable, and that the injured workman had a right to recover under the provisions of the general laws. A plan of a special law providing for such compensation of the employees of the state mines and metallurgical establishments was being i)re- pared in the Ministry of Agriculture and State Domains, embodying / CHAPTER IX.— WORKMEN 'S INSURANCE IN RUSSIA. 2121 the modern principles of such compensation, and this plan was finally adopted with certain modifications on May 15 (28), 1901. This act preceded by more than two years the general compensation act of 1903, and for some time in the history of the deliberations leading up to that act, served as a model. The law is still in force and IS much broader than the act of 1903 in many points, so that the employees of the government mines and metallurgical establish- ments are the best protected against the results of industrial accidents. One of the most hnportant points of distinction is found in the mclusion of disability from trade diseases, for which the same pen- sions are paid as for injuries through accidents. Another distinction of unportance is that only such injuries and occupational diseases are excluded from the benefits of the law as have been intentionally brought about by the victim; so that negh- gence, even if classified as gross, does not deprive the injured person of the compensation. In case of a fatal result the widow and orphans do not lose the right to compensation, even if the fatal accident or disease had been brought about intentionally. The general level of compensation for the permanently disabled employee, the widow or dependent widower, children or relations under ascending fines is the same as in the general law of 1903, i. e., two-thh-ds of the pension for total disability, and a corresponding amount, namely, two-thu-ds of the difference between the old and the new rate of wages, in case of partial, though permanent, disability which permits his reemployment by the state mines at a lower rate of wages. Thus the degree of disabifity is judged (in distinction to the methods under the general law) primarily with reference to his employment m the same service and not with regard to his general ability to work. The difi"erence is one of decided advantage to the employee of the state mines. i Only when the injured workman sufl-ering from such partial disa- bifity dechnes an offer of employment must his pension be computed a^-cordmg to the degree of disabifity, but in no case must it then exceed one-half of the pension for total disabifity; that is, 33 J per cent of the average annual earnings. The a^t of May 15 (28), 1901, does not concern itself with tJie numerous cases of transitory disabifity from minor accidents or ailments, because the fraternal organizations of the miners take care of that part of the problem, but in the provisions for reexamination and revision of the compensation award during the first two years after the accident and for the discontinuance of the pension in case of reestablished abifity to work, account is taken of briefer periods of disability. In case of the accident resulting fatally, the pension of the widow or the dependent \vidower amounts to one-half of the pension for permanent disabifity, the children under 16 years of age 2122 REPORT OF THE COMMISSIONER OF LABOR. I receive one-sixth of the full i)ension each, but not more than one-half of the full pension altogether, the pensions of orphans being dou])le that amount. The pensions of the children run until the completion of the sixteenth year, but when permanently disabled from earning a living because of an incurable disease tfley may receive the pension for life. The pension to the injured is discontinued at his reemploy- ment at the old wage, at his reception in a state hospital, at his death, at his entrance into a monastery, or at the cure of the disease. The pension of the widow, widower, or daughters stops at marriage. The pensions are not affected by any other benefits which the injured or his heirs may be receiving either from a mutual benefit fund or from the treasury because of any special law or grant. The method of computation of wages to determine the amount of pension is also different. It is based upon tht^ average annual earn- ings for three years preceding the accident, of the injured employee himself, or an employee of tlie same group if tlie injured person had not been employed this length of time. The application of the law is very much simplified, being left almost entirely to the administration of the state mines and metal- lurgical establishments, the final appeal being to the Ministry of Agriculture and State Domains (now the Ministry of State Domains). The medical questions are left to the discretion of the official physi- cian of the mining establishment. LEGISLATIVE ACTS, 1904 TO 1906. The majority of government employees are protected through an extension of the principles of the compensation act by separate enactments during the years 1904 to 1906, in accordance with the demand contained in the original law of 1903. Considerable clianges were made in some of the features of the law as appHed to government employees. The Ministry of War was first with a plan for the civil employees of the arsenals and other works of the artillery depart- ment. With the compensation act of 1903 as a basis, a special act was elaborated and approved on June 9 (22), 1904. All further enactments in regard to other classes of government employees refer to this aict of June 9 (22), 1904, and extend its provisions, and not those of the law of June 2 (15), 1903. On June 6 (19), 1905, a law was accepted covering employees of manufacturing, mining, and metallurgical establishments owned by the Crown and the appanages (personal property of the Emperor and of the members of the imperial family); on December 19, 1905 (January 1, 1906), the wage- workers and civil employees of the state printing office; on March 6 (19), 1906, the corresponding classes of employees of the senate printing office and the employees of the navy department; and on April 19 (May 2), 1906, employees of the CHAPTER IX.— workmen's INSURANCE IN RUSSIA. 2123 government establishments connected ^ith the department of com- merical ports. Certain additional decrees were pubHshed in con- nection with these laws at various dates: (1) Instructions referring to the application of the law; for the war department on April 29 (May 12), 1905; for the employees of the Crown on April 21 (May 4), 1906; for the employees of the navy department on December 28, 1906 (January 10, 1907). (2) Rules to determine the degree of disabihty for the war depart- ment on April 29 (May 12), 1905; for the navy department on Decem- ber 28, 1906 (January 10, 1907); these are identical with those issued in connection with the law of June 2 (15), 1903; the same rules are made appUcable to the employees of all other establishments covered by these laws. (3) Rules for medical examination of new appointees, with lists of diseases completely or conditionally disqualif3dng appHcants for appointment: In the war department, April 29 (May 12), 1905; for the establishments of the Crown, December 16 (29), 1905, (practically identical with those of the war department) ; for the senate prmting office, June 20 (July 3), 1906, (identical with those of the state prm^ ing office); for the navy department, December 28, 1906 (January 10, 1907), (almost identical with those of the war department). To indicate the extent of modifications introduced in the law of June 9 (22), 1904, it is sufficient to say that of the 53 sections of the original law 17 sections remained unchanged; 18 sections were omitted, and 18 more or less modified, mostly in language, but somewhat in substance, wliile 14 new sections were added in place of those omitted. In general the rate of pensions and allowances remained the same, while the procedure was considerably modified, since the government industrial establishments are not subject to the supervision of the factory or mine mspectors. But in addition to these administrative details some important changes were made in the most essential provisions of the law. Complaint has been made that the denial of compensation to workmen guilty of "gross negligence, which can not be justified by the conditions and circumstances of work," was one of the weak points of the law of June 2 (15), 1903. Tliis exception was only partly preserved in the law of June 9 (22), 1904, concerning the employees of arsenals, which provided that when such accident results fatally the war minister may, under exceptional circum- stances, allow the regular pensions to the members of the family. In all later enactments in regard to other classes of government employees all references to ''gross neghgence" were omitted, and only injuries intentionally self-inflicted are excepted. No less important is the inclusion of the occupational diseases with the injuries compensated. This apphes to all classes of govern- 2124 REPORT OF THE COMMISSIONER OF LABOR. ment employees affected by the laws passed. No definite list of trade diseases is given, but disability due to all injuries caused by the work, or resulting from it, entitles the employee to a pension. As only permanent disability or death from trade diseases is com- pensated, temporary allowances are not given. Death resulting from such injury entitles the members of the family to pensions under the same conditions as death from accidental injury. This extension of the conception of accidental injury necessitated complete records of the health of each employee, obtained by means of medical examinations at the beginning of employment and also wherever an injury to health is claimed. On the other hand, to guard against the excessive payments of pensions due to injuries to health, a certam standard of health is required at the time of entering employment, and Usts of diseases disqualifying from employment in the governmental establishments have been pubHshed in connection with each extension of the law to certain classes of government employees. This list includes the employees of the arsenal, the establishments of the Crown, and of the navy department. 1. Grave incurable disarrangements of nutrition, resulting from protracted and Berious diseases (malaria, scurvy, etc.), or from chronic poisonings by metals, alka- loids, alcohol, or other poisons. 2. All acute contagious diseases, and chronic contagious diseases during the con- tagious period. 3. Pronounced tubercular affections of lymphatic gland, scrofulous with e welling* hardening, suppuration, ulceration, and other tubercular affections. 4. Elephantiasis in the pronounced stages of development. 5. Leprosy. 6. Chronic rheumatism, deforming inflammation of joints with hardening, contrac- tions, and other permanent results. 7. Leucaemia, malignant anaemia, and bleeding diathesis. 8. Addison's disease. 9. Diabetic or nondiabetic polymresis. 10. All malignant tumors. • 11. Benign tumors, when interfering with work or with the function of important organs. 12. Myx oedema. 13. Lupus vulgaris, mycosis fungoides, multiple molluscum fibrosum, pemphigus chronicus, scleroderma, prurigo, ichthyosis, psoriasis vulgaris, and other chronic skin diseases accompanied with grave disturbances of general nutrition. 14. Aggravated cases of pediculosis capitis, with ulcers and cruste. 15. Chronic ulcers of syphilitic, scurvic, or tubercular origin. 16. Chronic bone diseases, their complications and results; necrosis, caries, cold abscesses, affections of muscles, tendons, and cartilages. 17. Aneurisms of large vessels. 18. Epilepsy, hystero-epilepsy. 19. Unilateral paralysis, paralysis of one upper or both lower extremities. 20. St. Vitus' dance, paralysis agitans, and other chronic general twitching affec- tions. 21. Chronic neuritis and neuralgia, interfering with work. 22. Diseases of spinal cord and its membranes. 23. Idiocy, insanity, and mental weakness of all stages or forms. CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2125 24. Grave forms of hysteria and traumatic neurosis. 25. Progressive muscular atrophy. 26. Basedow's disease. 27. Bronchial asthma. 28. Scars of eyelids, keeping up inflammation of cornea or conjunctiva. 29. Well defined granular conjunctivitis, with deep infiltration. . 30. Well defined chronic catarrh of the conjunctiva with enlarged follicles and swelling. 31. Adhesions between the eyelids, or between either and the eyeball in one or both eyes, when interfering with sight or with the free motion of the eyeball. 32. Decrease of over one-half in the power of sight, notwithstanding correction by glasses, because of permanent changes in the eye. 33. Permanent paralysis of the motor nerves of the eyelids or eyeballs. 34. Purulent discharge from one or both ears, resulting from deep destructive afifec- tions of the middle ear. 35. Complete deafness of both ears, or such limitation of hearing that the examined workman can not hear a low voice at a distance of 1 arsheen (2J feet) and a loud voice at a distance of 6 arsheens (14 feet). 36. Loss of hearing and speech (deaf-mutes). 37. Tumors of pharynx, larynx, or nose, when subject to bleeding, or interfering with deglutition or respiration. 38. Organic diseases of larynx or trachea, interfering with speech, respiration, or deglutition. 39. Stricture of oesophagus. 40. Chronic catarrh or respiratory ducts, with failure of general nutrition: bron- chiectasis and well-defined pulmonary emphysema. 41. Tuberculosis, chronic pneumonitis, and pleuritis. 42. Organic diseases of heart, pericardium, aorta, ahd pulmonary arteries. 43. Organic diseases of peritoneum, liver, epleen, stomach, intestines, kidneys, and other abdominal or pelvic organs, with disturbance of function and of general nutrition. 44. Abdominal hernia of any degree. (Dilatation of the inguinal canal without protrusion of internal organs is not to be considered a hernia.) 45. Prolapse of all layers of the rectum without pressure, rectal fistula, or stricture of rectum or anus. 46. Abnormal anus. 47. Diseases of the genito-urinary organs, leading to uncleanlineso. 48. Diseases of vertebra, curvature of vertebra columns or pelvis, when interfering with work. 49. Absence of both feet. 50. Considerable dilatation of veins, with formation of many large knots, interfering with circulation or threatening the integrity of the walls of the blood vessels. 51. Absence of one thumb, or two fingers on one hand, when interfering with work. 52. Supernumerary fingers, curvature of fingers, contractions, or other deformities, when interfering with free action of hand. 53. Prolapse of vulva and uterus. 54. Grave affections of uterus or appendages, or the cellular tissue of the pelvis, or pelvic peritoneum. 55. Pregnancy, during the last three months, and four weeks after childbirth. A modified list, much briefer and less severe in its restrictions, is applied to the two printing offices, where much less physical strength is demanded of the employees, because of the lighter nature of the work. The list includes, briefly: 2126 REPORT OF THE COMMISSIONER OF LABOR. Contagious diseases, and primarily syphilis and tuberculosis; and general noncontagious diseases, especially general disarrangenienta of nutrition because of chronic lead, alcohol, or other poisoning; tumors, malignant or benign; all mental diseases; organic or func- tional diseases of the central nervous system, organic heart diseases knotty dilations of vems and varicose ulcers ; such diseases of the respiratory ducts as interfere with respiration or speech, chronic pneumonia and pleurisy; purulent bronchitis and emphysema; such digestive diseases as have produced evident disturbances of nutri- tion; u-reducible hernia, or such as can not be supported by a truss; genito-urinary diseases which threaten to cause early working dis- ability; diseases of the bones, muscles, joints; chronic contagious eruptions, lupus of the face; such scars, or unhealed ulcers, as limit the mobility of members, blennorheic eye infections; trachoma and conjunctival scars; decrease of the power of sight; everted or uiverted eyelids; purulent otitis media; considerable decrease of sense of hear- ing. While the list is comprehensive, in the majority of diseases tlie addition of the qualifymg phrase 'Vhen interfering with the per- formance of duties" greatly reduces the stringency of the regulations and simply establishes the rule that only men physically able to per- form the work satisfactorily, and not likely to 'lose then- working ability m the near future, may be given employment. While the general law includes, in addition to workmen, the tecli- nical employees only, all laws in regard to government establish- ments include aU civil employees receiving a remuneration at a rate of not more than 1,500 rubles (S772.50) per annum. A change of some importance consists m granting to orphans who through illness or deformity, are incapacitated from earning a living' pensions for life instead of to the completion of the sixteenth year ^ Payment of pensions for permanent disabUitv is discontmued dur- ing the time the injured is reemployed in the same establishment if the wages paid him are not smaller than before. When such wac^es are smaUer, the pension is equal to only two-thirds of the difference^ The pensions granted are paid irrespective of anv subsidies or pen- sions which the pensioner may receive from the Government or anvone else. The substitution of a lump-sum payment for the pensions is not permitted when the pension exceeds 24 rubles ($12.36) per annum It IS the practice in private industrial establishments to agree upon lump-sum payments, but these are not considered to be in the best interests of the workmen. The methods of administration of the laws have been considerably changed, since the government estabhshments are not subject to the ]unsdiction of the factory or mine inspectors to whom the larger share 1 CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2127 in the administration of the law of 1903 is intrusted. These func- tions are intrusted to the administrative officers of the establishments; a conimittee of three members is organized for this purpose \^'ith the superintendent of the estabhshment as chairman, who acts inde- pendently in case of emergency. Thus, notice of accident must be given and also apphcation for pensions or allowances made to him. He also grants allowances for temporary disabihty, the cost of medical treatment, or the funeral expenses, unless he prefei-s to refer them to the committee. Cases of permanent pensions for death or permanent disabihty, accompanied by all documentary evidence, must be referred to the committee, which renders a written decision, giving reasons for such, and the superintendent acts upon this decision. The procedure is different from that of the law of 1903, wliich requires friendly agreements between both parties, wliile here a purely admin- istrative order takes its place. The claimant can fUe objections to the decision witliin two months from the day of receiving notice and demand reconsideration of the case. The committee must act upon receiving such an objection, and must give an independent consider- ation of the case within thirty days. If stiU dissatisfied, the claimant may choose one of two ways: He may either carry the case to the head of the ministry in whose department he is employed or enter a suit agamst the Government. The use of one of these two methods prevents the employee from taking advantage of the other. Suits are entered against the Government in the name of the superintendent of the estabhshment. The essential feature of this system is the decentralization of the administration, with a right of appeal to the head of the department. STATISTICS OF THE OPEBATION OF THE LAW. The statistical information as to the apphcation of the law of 1903 is limited to the estabhshments subject to factory inspection^ and then including only the cases resulting fatally or in permanent disabihty. These data are presented in the following six tables. In the foUowmg table the cases wherem settlements have been effected in accordance with the law and have been certified by the factory mspectors are compared with the total number of cases reg- istered. The percentage has increased from 37.7 per cent in 1904, to 78.8 per cent in 1905, and 90.6 per cent in 1906. This indicates a growmg frequency of peaceful settlements in the office of the factoiy mspectors— i. e., out of courts— though the low percentage of the year 1904 may be explained by the delay in settlements, which has carried many cases over into 1905. The cases of partial disabihty involving small compensation, are most frequently settled peacefully and the fatal cases least frequently. 2128 REPORT OF THE COMMISSIONER OF LABOR. NUMBER OF ACCIDENTS REGISTERED AND NUMBER AND PERCENT OF CASES CER- TIFIED BY INSPECTORS, BY RESULT OF INJURY. 1904 TO 1906. [Source: Ministerstvo Torgovli i Promyshlennosti. Statistlches kia SvedeniaoResultatakh I'rimenenia Zakona 2 itinla 1903 goda.J 1904. 1905. 1906. Result of injury. Cases regis- tered. Cases certified by inspectors. Cases regis- tered. Cases oertlfied by iuiipectors. Cases regis- tered. CsBM certifi«Mi by inspectors. t Num- ber. Per cent. Num- ber. Per cent. Num- ber. Per cent. Death 382 70 5,783 105 17 2.228 27.5 24.3 38.5 332 59 8,196 197 45 6,524 59.3 76.3 79.6 371 60 10,296 228 46 9,446 61.5 Total permanent disability Partial permanent disability — 76.7 91.7 Total 6,235 2.350 37.7 8,587 6,766 78.8 10,727 9,720 90.6 In the following table are shown the numb<>r of cases for which annual pensions are actually granted and those for which the capital- ized value is paid instead of annual pensions. In the vast majority of cases settled (all but 8 per cent in 1906) the annual pensions have been capitalized. Such capitalization of the annual pensions is found to be particularly common in cases of partial disability (93 ])er cent in 1905 and 93.4 per cent in 1906) where the computed annual pension is often very low; it is agreed to in about half of the fatal cases, and in comparatively few cases of total permanent disability (31.1 per cent in 1905 and 28.3 per cent in 1906). This frequent capitalization of the pension into a lump-sum payment is considered an evil by most Russian authorities on the subject, especially in fatal cases. When the degree of partial disabihty is low, and the pension therefore amounts to only a few rubles a year, such capitahzation is justified, but in grave or fatal cases the employer may often force the employee to agree to a capitalization by refusing a peaceful settlement on any other conditions, for such capitalization at a sum equal to ten annual payments is often very advantageous to the employer. Within recent years, however, a considerable increase in the proportion of cases leading to pensions, rather than to lump-sum payments, has been noticed. From 7.9 per cent in 1906, it has increased to 12.5 per cent in 1907 and to 17.8 per cent in 1908. This may be explained by a gradual increase in the workmen's familiarity with the provi- sions of the law. The table also shows that in a great majority of cases (about two- thirds in round numbers) temporary disability allowances are granted before the degree of disability can be established. CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2129 NUMBER AND PER CENT OF CASES IN WHICH WERE GRANTED ANNUAL PENSIONS, CAPITALIZED PENSIONS, AND ALLOWANCE FOR TEMPORARY DISABILITY, 1904 TO 1908. [Source: Ministerstvo Torgovli J Promyshlennosti. Statlstlcheskia Svedenia o Resultatakh Primeoenia Zakona 2 iunia 1903 goda. Svod otchotov fabrichnykh inspectorov za 1908 god.] Result of Injury. Cases agreed to and certified. Cases In which annual pensions were granted. Cases in which pensions were capitalized. Cases in which temporary d i s - abihty allow- ances were grunted l>efore final settlement. Numl)er. Percent. Numlier. Per cent. Numl»er. Per cent. 1904. Death ^... 105 17 2,228 55 9 142 52.4 52.9 &4 50 8 2,086 47.6 47.1 93.6 20 7 1,606 19.0 41.2 72.1 Total permanent disability Partial i>ennanent disability Total 2,350 206 8.8 2,144 91.2 1.633 69.5 1905. Death 197 45 6,524 91 31 454 40.2 68.9 7.0 106 14 6,070 53.8 31.1 93.0 33 29 4,626 16.0 64.4 70.9 Total permanent disability Partial permanent disal>ility Total 6,766 576 8.5 6,190 91.5 4.688 69.2 1906. Death 228 46 9,446 111 33 628 48.7 71.7 6.6 117 13 8,818 51.3 28.3 93.4 60 30 G.841 25.2 65.2 72.4 Total permanent disability Partial permanent disability Total 9,720 772 7.9 8,948 92.0 6,931 71.2 1907. Death a 213 43 10,076 103 22 1,163 45.8 51.2 11.5 122 21 8,913 54.2 48.2 88.5 («») («») («•) Total permanent disability Partial permanent disability Total a 10,332 1.288 12.5 9,056 87.5 (*) («>) 1908. Death 199 42 9,581 121 30 1,596 59.6 71.4 16.6 82 12 7,983 40.4 28.6 83.4 (0) Total permanent disability Partial permanent disability Total «9,822 1,747 17.8 8,077 82.2 (*) (6) o In 1907 in 12 cases and In 1908 in 4 cases some dependent relatives accepted pensions and some lump sums. For this reason the additions of pension rewards and capitalized rewards gives a larger total than the number of cases. The larger total was used in computing the percentages. ft No data available. In the following table are computed the average annual earnings, the total and average amount of computed pensions, and the average proportion of the pension to the wages. The legal rate of compensa- tion in cases of total permanent disability is two-thirds of the annual earnings, and this proportion is upheld in practically all cases. In the fatal cases the maximum compensation allowed is two-thirds, but this maximum is evidently not reached in a great number of cases, for the average proportion is less than one-half the annual earnings. The average pension is very low in cases of partial permanent dis- ability. It was only 8.1 per cent of the earnings in 1906, 7.8 per cent in 1907, and 8.8 per cent in 1908. The fact that the number of cases of partial disability in 1906 was more than four times what it was in 1904 would seem to indicate that lighter injuries are being 2130 REPOET OF THE COMMISSIONER OF LABOR. compensated. The average is nevertheless remarkably low, when it is remembered that the minimum degree of disability practically used in the medical certificates is 5 per cent, \\ hich would correspond to a pension of 3.3 per cent, and that in the vast majority of per- manent injT^ries the degree of disability is much higher. In fact, out of 189 classes of injuries contained in the table prepared for the guidance of the certifying physicians, only 65 were less than 25 per cent and 76 classes were 50 per cent or over. Because of the great predominance of cases of partial disability over those of complete disability or death the grand average rate of pension in 1907 was only 8.4 per cent of the annual earnings, and m 1908 only 9.8 per cent. The average computed pension in 1908 was $79.23 for fatal cases, $129.72 in cases of total permanent dis- abihty, and $14.87 for cases of partial permanent disability, the average pension for all cases being $16.66 in 1908 as against $15 03 in 1907 and $15.49 in 1906. ^^^^^^.^^ ACCIDENTS CERTIFIED. ANNUAL EARNINGS, AND COMPUTED AMOUNT INJulyfrnfTO^m ^'''' CERTIFIED BY FACTORY INSPECTORS. BY RESULT OF (Source: ^iniste^tvo TorgovlH P^^^^^^ StaUsticheskia.Svedenia o Resultatakl. PrimeBenia ^dKonajiuniaimjgoda. Svod otchotov fabnchnykh impectorov za 1908 god.] ^=^«*^» Result of injury. 1904. Death Total permanent disability.!! Partial permanent disability. Total. 1905. Death Total permanent disability... Partial permanent disability. Total 1906. Death Total permanent disability.!! Partial permanent disability. Total 1907. Death Total permanent disability... Partial permanent disability. Total 1908. Death Total permanent disability!!! Partial permanent disability. Num- ber of cases certi- fied. Annual earnings of Injured. 105 17 2,228 2,350 197 45 6,524 6,766 228 46 9,446 9,720 Total. *13,594.85 2,720.68 344,855.20 361.170.73 26,151.00 6, 151. 29 1,045.205.65 1,077,507.94 30.279.40 7.767.35 1.629,094.47 Aver- age. $129. 47 ItiO. 04 1 ')4. 78 Computed amount of pensions. Total. irwi. 69 132.24 im. 70 KiO. 21 lf.9. 25 127. 80 It*. 86 172.46 $6, 749. 21 1,815.00 35,116.77 43,680.98 Aver- age. $64.28 10(i. 76 15. 76 18,59 12,093.08 4, 107. 66 96, 467. 43 112,668.17 14.248.74 5,043.40 131,317.46 1,667 ,141.22 171.51 Total. 213 43 10,076 10,332 199 42 9,581 9,822 30.680.56 7.844.53 1,737.267.75 1,775,792.84 35,526.42 8,349.65 1,620,283.91 144. 04 182. 43 172, 42 1,662,159.98 171 87 178. 46 198 80 169 11 150,609.60 14,422.48 5,219.28 135,637.06 61.38 91.28 14.79 16.66 Per cent of earn- ings. 49.6 66.7 10.2 12.1 46.2 66.8 9,2 62,50 109 66 13.90 10.4 47.1 649 8.1 155,278.82 169.23 15,765.82 5,448.42 142,443.03 163,657.27 15 49 67 71 121 37 13 m 15 m 79 23 129 72 14.87 16.66 9.0 47.0 ♦Kj.5 7.8 a4 44.4 65 3 88 0.8 CHAPTER IX.— workmen's INSURANCE IN RUSSIA. 2131 A consideration of the data of the following table, where the actual pensions paid as such are given in the first three columns, shows that the average pensions are considerably higher for the cases settled by annual pensions than for those settled by lump-sum payments To make a comparison for 1908: The average computed pension for aU fatal cases as shown by the preceding table was $79.23, and for those cases where annual pensions were actually paid, $89.45; while for the cases settled by lump sums the average computed pension was only $63.36; for the cases of total permanent disability the general aver- age was $129.72, the average for pension cases was $146.46, and for lump-sum cases $87.88; for cases of partial permanent disability the general average was $14.87, the average for pension cases $28.17, and for the lump-sum payments $12.21. In all groups of cases the tendency is to convert the smaller pensions into lump-sum payments because a small pension loses its value, and a lump sum is therefore preferred. Statements are also often made that in their anxiety to get a lump sum the claimants are often willing to accept a smaller compensation. In the absence of adequate mortahty statistics the law permits the capitalization of pensions at ten times the annual value, except for such pensions as are not expected to run for 10 years; in these cases the capitalized value must be equal to the annual value multiphed by the number of years the pension h as to run. The figures show that the average capitalization is actually made at that rate. The total .amount paid out m lump sums in 1908 was $1,006,305.76, while the computed value of the annual pensions for these 8,077 cases was $103,486.42, which gives a rate of capitalization of 9.72. ...... ---^J,---- -^^^^^^^^ BV Result of injury. 1904. Death Total permanent disability.."."." Partial permanent disability.! Total 1905. Death Total permanent disability. ." ' " Partial permanent disability. . Total Cases settled by pajrment of annual i)ensions. Num- I ^ Total jjpj. computed pensions. Cases settled l)y payment of capitalized value of pensions. Average pension per case. 55 9 142 206 91 31 454 576 $4,476.91 1,116.59 4, 743. 63 10,337.13 6,859.85 3, 063. 01 14,630.13 $81.40 124. 07 33.41 Num- ber. Total com- pensation paid. Average compen- sation per case. 50.18 75.38 98.81 32.22 24,552.99 42.63 50 8 2,086 2,144 106 14 6,070 $21,491.84 6,983.86 304,483.40 332,959.10 51,824.20 10,446.67 828, 455. 57 6,190 890,726.44 $429.84 872.98 145.97 155.30 488.91 746.19 136.48 143.90 2132 REPOBT OP THE COMMISSIONER OF LABOR. ANNUAL PENSIONS PAID AND LUMP-SUM PAYMENTS MADE IN CLAIMS SETTLED BY FACTORY INSPECTORS, BY RESULTS OF INJURY, 1904 TO 1908-Conclu,Jed. Result of injury. 1906. Death Total permanent disability.. Partial permanent disability Total 1907. Death Total permanent disability.. Partial permanent disability Total 1908. Death Total permanent disability.. Partial permanent disability Total Cases settled by payment of annual pensions. Num- ber. Ill 33 628 772 103 22 1,163 1,288 121 30 1,596 Total computed pensions. $8,508.55 3,936.88 20,533.87 32,979.30 8, 400. 93 2, 782. 60 32,211.94 43,395.47 10,823.99 4,393.92 44,952.94 Average pension per case. $76.65 119.29 32.70 42.72 8L56 126.48 27.70 33.69 1,747 60,170.85 89.45 146.46 28.17 34.44 Cases settled by payment of capitalized value of ["ensions. Nimi- ber. Total com- pensation paid. Average oompen- sat on percaie. 117 13 8,818 $52,801.31 10,66L54 1,103,502.57 $451 29 820,12 125. 14 8,948 1,166,965.42 130.42 122 21 8,913 55,951.29 23,988.36 1,029,322.88 458.62 1,142 30 115.49 9,056 1,109,262.53 122.49 82 12 7,983 46,094.29 10,484.80 949, 726. 67 562.12 873. 73 118. 97 8,077 1,006,305.76 124. 69 The usual amount of pensions and lump sums granted may be better judged from the following two tables, in which aU cases of pensions and lump-sum grants for 1904 to 1908 are classified by amount and by result of accidents. It appears that in fatal cases nearly one-half of all the pensions fall between the limits $25.75 and S77.25, and that nearly three-fifths (58.2 per cent) are not over the latter amount. In total permanent disability the pensions are usually higher. None were less than $25.75, 34.4 per cent were not over $77.25, 42.4 per cent were from $77.25 to $154.50, and 23 2 per cent above that amount. On the other hand, in partial permanent disability nearly three-fifths (59.5 per cent) were not over $25.75 and 84.7 per cent not over $51.50. The lump-sum benefits are naturally much larger, as the normal method of capitalization is by multiplication of the annual pension by ten. The average capital sum paid for a fatal case was $478 33 a little over one-third (34.1 per cent) were comi)ensated by not over $257.50, a httle over one-third received from $257.50 to $515 and less than one-third received over $515. In cases of total permanent disability the average lump-sum compensation was $920 08 or nearly double that for fatal cases. Only in a very few cases was the com- pensation less than $515, and payments of over $1,030 were not infrequent. These amounts represent small fortunes for Russian workmen, and that often explains the willingness to capitalize the pension. I*' ! CHAPTER IX. — workmen's II^SURANCE IN RUSSIA. 2133 The lump sums paid for partial permanent disability represent very small amounts, so that in a great many cases the economic use of such payments may be questioned. While the average payment represented $124.46, nearly two-thirds (63.9 per cent) amounted to $103 or less, and about two-fifths (40.2 per cent) to $51.50 or less. NUMBER, AMOUxNT, AND AVERAGE OF PENSIONS PAID, BY RESULT OF INJURY \ND CLASSIFIED AMOUNTS OF PENSION, 1904 TO 1908. (Source: Ministerstvo Torgovli i Promyshlennosti. Statisticheskia Svedenia o Resultatakh Primenenia Zakona 2 lunia 1903 goda. Svod otchotov fabrichnykh inspectorov za 1908 god^ *^"™<'"*'*** Classified annual pension. Numl)er of cases. Percent. Total .\verage amount of amount of pensions. pension. Fatal cases: $5.15 and under 1 55 128 101 72 71 42 11 0.2 n.4 26.6 21.0 15.0 14.8 &7 2.3 $3.72 1,026.11 6,017.20 6,269.30 6,427.50 8,851.98 8,016.36 3, 457. 56 Over $5.15 to $25.75 $3.72 Over $25.75 to $51.50 18.66 Over $51,50 to $77.25 38.20 Over 177.25 to $103 62.08 Over $103 to $154.50 89.27 Over $154.50 to $257.50 124.68 Over $257.50 to $515 190.87 314.32 Total 481 100.0 <)9,07u. 23 81.23 Permanent disability cases: Over $25.75 to $51.50 13 30 28 25 17 12 10.4 24.0 22.4 2ao 13.6 9.6 587.18 1,938.01 2,556.83 2,963.18 3,362.99 3,8S5.00 Over $51.50 to $77.25 45.17 Over $77.25 to $103 64.60 Over $103 to $154.50 91.32 Over $154.50 to $257.50 118.53 Over $257.50 to $515 197.82 n^ni-al 323.75 1 ocai 125 100.0 15,293.19 122.35 Partial permanent disability cases: $5.15 and under 508 1,863 1,005 337' 142 93 32 3 12.7 46.8 25.2 8.5 3.6 2.3 .8 .1 1,753.40 26,503.80 36,538.40 20,881.45 12, 709. 58 11,742.92 5,985.06 957.90 Over $5.15 to $25.75 Over $25.75 to $51.50 Over $51.50 to $77.25 '. 3.45 14.23 36.36 Over $77.25 to $103 61.96 Over $103 to $154.50 89.50 Over $154.50 to $257.50 126.27 Over $257.50 to $515 187.03 319. GO Total 3,983 100.0 117,072.51 29.39 Total cases: $5.15 and under 509 1,918 1,146 468 242 189 91 26 11.1 41.8 25.0 10.2 6.3 4.1 2.0 .5 1,757.12 27,529.91 42, 142. 78 29,089.27 21,693.91 23,558.07 17,364.41 8, 300. •16 Over $5.15 to $25.75 3.45 Over $25.75 to $51.50 14.35 Over $51.50 to $77.25 36. < 1 Over $77.25 to $103 62.16 Over $103 to S154.50 S9.64 Over $154.50 to $257.50 124.65 Over $257.50 to S515 190.82 . 319.25 Total 4,589 100.0 171,435.93 37.36 X ^ 2132 REPOBT OF THE COMMISSIONER OF LABOR. ANNUAL PENSIONS PAID AND LUMP-SUM PAYMENTS MADE IN CLAIMS SETTLED BY FACTORY INSPECTORS, BY RESULTS OF INJURY, 1904 TO 1908-Coiioluded. Result of injury. 1906. Death Total permanent disability.. Partial permanent disability Total 1907. Death Total permanent disability. . Partial permanent disability Total 1908. Death Total permanent disability.. Partial permanent disability Total Cases settled by payment of annual x)ensions. Num- ber. Ill 33 G28 Total computed pensions. $8,508.55 3, 936. 88 20, 533. 87 Cases settled by payment of capitalized valuo of pensions. Average pension per ease. 772 103 22 1,163 1,288 121 30 1,596 1,747 32,979.30 8, 400. 93 2, 782. 60 32,211.94 43,395.47 10,823.99 4,393.92 44,952.94 $76.65 119 29 32 70 42.72 81 56 126 48 27.70 33.69 60, 170. 85 89 45 146 46 28.17 34 44 Num- ber. 117 13 8,818 8,948 Total wm- pensation paid. $52,801 31 10, 661 54 1,103,502 57 1,166,965 42 122 21 8,913 9,056 82 12 7,983 8,077 55,951 29 23,9H8 36 1,029,322 88 1,109,262.53 46,01)4.29 10, 4H4 80 949, 726. 67 1,006,305.76 Average compen- sation per case. $451.29 820. 12 125. 14 130.42 458.62 1,142.30 115. 49 122.49 562.12 873. 73 118. 97 124. 59 The usual amount of ])ensions and lump sums granted may be better judged from the following two tables, in which all cases of pensions and lump-sum grants for 1904 to 1908 are classified by amount and by result of accidents. It appears that in fatal cases nearly one-half of aU the pensions fall between the limits $25.75 and S77.25, and that nearly tliree-fifths (58.2 per cent) are not over the latter amount. In total permanent disability the pensions are usually higher. None were less than $25.75, 34.4 per cent were not over $77.25, 42.4 per cent were from $77.25 to $154.50, and 23.2 per cent above that amount. On the other hand, in partial permanent disabihty nearly three-fifths (59.5 per cent) were not over $25.75 and 84.7 per cent not over $51.50. The lump-sum benefits are naturally much larger, as the normal method of capifalization is by multiplication of the annual pension by ten. The average capital sum paid for a fatal case was $478 33 a little over one-third (34.1 per cent) were compensated by not over $257.50, a little over one-third received from $257.50 to $515 and less than one-third received over $515. In cases of total i>ermanent disability the average lump-sum compensation was $920.08, or nearly double that for fatal cases. Only in a very few cases was the com- pensation less than $515, and payments of over $1,030 were not infrequent. These amounts represent small fortunes for Eussian workmen, and that often explains the willingness to capitaUze the pension. CHAPTER IX. — WORKMEN S INSURANCE IN RUSSIA. 2133 The lump sums paid for partial permanent disability re])resent very small amounts, so that in a great many cases the economic use of such payments may be questioned. While the average payment represented $124.46, nearly two-thirds (63.9 per cent) amounted to $103 or less, and about two-fifths (40.2 per cent) to $51.50 or less. NUMBER, AMOUNT, AND AVERAGE OF PENSIONS PAID, BY RESULT OF INJURY .^ND CLASSIFIED AMOUNTS OF PENSION, 1904 TO 1908. [Source: Ministerstvo Torgovli i Promyshlennosti. Statisticheskia Sv^edenia o Resultatakh Primeuenia Zakona 2 iunia 1903 goda. Svod otchotov fabrichnykh inspectorov za 1908 god.] Cla.s.er of cases. Per cent. Total Average amount of amount of pensions. pension. Fatal cases: $5.15 and under 1 55 128 101 72 71 42 11 0.2 1L4 26.6 21.0 15.0 14.8 8.7 2.3 $3.72 1,026.11 6,017.20 6,269.80 6,427.50 8,851.98 8,016.36 3, 457. 56 $3.72 18 4 (i8 Over $154.50 to $257.50 1Q«) H7 Over $257.50 to $515 314 22 Total 481 100.0 39,070.23 81.23 Permanent disability cases: Over $25.75 to $51.50 13 30 28 25 17 12 10.4 24.0 22.4 20.0 13.6 9 6 587.18 1,9.38.01 2,556.83 2,963.18 3,362.99 45.17 M tin Over $51.50 to $77.25 Over $77.25 to $103 91.32 118.53 197.82 '?'>'{ 7=1 Over $103 to $154.50 Over $154.50 to $'257.50 Over $257.50 to $515 "•" "» " Total 125 100.0 1 15,293.19 122. .35 Partial permanent disability cases: $5.15 and under 508 1,863 1,005 337' 142 93 32 3 12.7 46.8 25.2 8.5 3.6 2.3 .8 .1 1,753.40 26,603.80 36,538.40 20,881.45 12, 709. 58 11,742.92 5,985.06 957.90 •? i^ ver $5. 15 to $25.75 14.23 36.36 61.96 89.50 1-26. 27 187.03 319. .00 Over $25.75 to $51.50 Over $51.50 to $77.25 Over $77.25 to $103 Over $103 to $154.50 Over $154.50 to r257.50 O ver $257.50 to$515 Total 3,983 100.0 117,072.51 29.39 Total cases: $5.15 and under 509 1,918 1,146 468 242 189 91 26 11.1 41.8 25.0 10.2 6.3 4.1 2.0 .5 1,757.12 27,529.91 42, 142. 78 29,089.27 21,693.91 23,558.07 17,364.41 8,300.<6 3.45 14.35 36. 77 62.16 89.64 124.65 190.82 319.25 Over $5.15 to $25.75 Over $25.75 to $51.-50 Over $51.50 to $77.25 Over $77.25 to $103 Over $103 to $154.50 Over $154.50 to $257.50 Over $257.50 to $515 Total 4,589 100.0 171,435.93 37.3»i 2134 EEPORT OF THE COMMISSIONER OF LABOR. NUMBER, AMOUNT, AND AVERAGE OF LUMP-SUM BENEFITS PAID, BY RESULTS OF INJURY AND CLASSIFIED AMOUNTS OF PAYMENTS, 1904 TO 1908. [Source: Ministerstvo Tor^ovli i Promyshlennosti. Statistieheskia Rvedenia o Resultatakh Primenenia Zakona 2 iunia 1903 goda. Svod otchotov fabrichnykli iiispectorov za 1908 god.] Classified lump-sum payments. "Fatal cases: Over $5.15 to $25.75 Over $25.75 to $.51.50... Over $51.50 to $103 Over $103 to $154.50... Over $154.50 to $257.50. Over $257.50 to $515 . . . Over $515 to $1,030 Over $1,030 Total. Total permanent disability: Over $154.50 to $257.50... Over $257.50 to $515 Over $515 to $1,030 Over $1,030 Total. Partial permanent disability: $5.15 and under Over $,5.15 to $25.75 Over $25.75 to $51.50 Over $51.50 to $103 O ^er $103 to $154.50 Over $154.50 to $'257.50... . Over $257.50 to $.515 Over $515 to $1,030 Over $1,030 Total. All cases: $5.15 and under Over $5.15 to $25.75.... Over $25.75 to $51.50... Over $51.50 to $103 Over$103 to $154.50... Over $154.50 to $257.50. Over $257.50 to $515... Over $515 to $1,030 Over $1,030 Total. Number of cases. 15 37 109 163 110 41 477 2 3 45 IS 68 97 6,324 7,187 8,017 4,013 3,944 3,225 946 117 33,870 97 6,326 7,187 8.032 4,050 4,055 3,391 1.101 176 34, 415 Per cent. 0.4 3.1 7.8 22.8 34.2 23.1 8.6 100.0 Total amount paid. $25. 33 1.162.tl5 4,998.05 22, 770. 19 61,221.93 76,368.37 61,617.00 rb 228,162.92 2.9 4.4 66.2 26.5 100.0 .3 18.7 21.2 23.7 11.9 11.6 9.5 2.8 .3 100.0 .3 18.4 20.9 23.3 11.8 11.8 9.8 3.2 .5 434.14 1.436.49 33,3.33.00 27,361.61 62,565.24 573. 52 105,604.72 274.980.3** 599,082.11 508.588. 3S 783,831.82 .143,882.95 641,. 300. 30 157,646.92 4.215,491.10 573. 52 105,630.04 274, 980. 38 000.244.15 513,586.44 807.036. Hi 1,206,541. ;k» 751.001.67 246,625.54 100.0 4,506,219.20 Avorage amount paid. $12.67 77.47 135.08 208.90 375.59 694. 26 1.602.85 478.33 217.07 478.83 740.73 1.620.09 920.08 5.91 16.70 38.26 74.73 126.74 198.74 354.69 677. 91 1.347.41 124.46 5.91 16.70 38.26 74.73 126.81 199.02 355.81 682. 11 1,40L28 130. 94 The expenses for temporary allowances ^iven before death ensues or the degree of permanent disability is established are shown in the following table. The average is found to be quite small, only $17.27 per case in 1906. The total cost in 1 906 was $1 19,689.95. It must be remembered that this total includes only the cases certified to by the factory inspectors and does not include any cases of purely temporary disability. CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2135 ALLOWANCES PAID FOR TEMPORARY DISABILITY BEFORE DEATH OR BEFORE PERMANENT DISABILITY WAS ESTABLISHED, 1904 TO 1906. [Source: Ministerstvo Torgovll i Promyshlennosti. Statistieheskia Svedenia o Resultatakh Primenenia. Zakona 2 iunia 1903 goda.) Result of injury. Death Total permanent dis- ability Partial permanent disability Total 1904. 1905. Cases. 20 7 1,606 1,633 Amount of tem- porary allowances. Total. $215.36 239.50 24.295.93 24,750.79 Aver- age per case. $10. 77 34.21 15.13 15.16 Cases. Amount of tem- porary allowances. Total. 33 29 4,626 $496.30 1,917.23 79,980.89 Aver- age per case. $15.04 66.11 17.29 1906. Cases. 60 30 6,841 4,688 82, .394. 42 17.58 6,931 Amount ol tem- porary allowances. Total. $784. 42 1,167.75 117,737.78 119,689.95 Aver- age per case. $13.07 38.9^ 17.21 17.27 The data in regard to temporary disability were not included in the report because such cases seldom come up before the factory inspectors. In fact only 75 such cases were certified in 1904, 33 in 1905, and 30 in 1906 out of a total of forty to fifty thousand cases annually. The claims for compensation for temporary disability are evidently adjusted without reference to the factory inspector. A proportion of cases which are referred to the factory inspectors are not certified by them, either because both sides fail to reach an agreement or because the factory inspectors refuse to approve the agreement as contrary to the provisions of the law. The number of cases of the latter class were very much smaller than of the first class. Only 113 cases occurred during three years where factory inspectors on their own initiative refused to certify the agreements^ while in 4,808 cases no agreement was reached. The most frequent cause of refusal to certify the agreement was the determination of degree of disability; on the other hand, disa- greements between employer and employee were caused most fre- quently by the question as to the right of compensation, and next to this, by the question as to the amount of compensation. NUMBER OF CASES LEADING TO DISAGREEMENT OR TO REFUSAL OF INSPECTORS TO CERTIFY, 1904 TO 1906. CSource: Ministerstvo Torgovll i Promyshlennosti. Statistieheskia Svedenia o Resultatakh Primenenia. Zakona 2 iunia 1903 goda.) ■ Total number of cases pre- sented to in- spect- ors. Number of cases wherein the cause of disagreement was — Total cases wherein no agree- ment was reached. Number of cases wherein the cause of refusal was— Total cases Year. Right of com- pensa- tion. Amount of com- I)enRa- tion. Form of com- pensa- tion. Other causes. Degree of disa- bility. Annual earn- ings. Other causes. wherein, certifi- cation was de- clined. 1904 3,071 8,406 12,438 316 783 1,446 237 633 1,009 47 5.5 80 27 71 104 627 1,542 2,639 10 30 33 1 12 1 8 13 5 19a5 19 1906 55 3» Total 23,915 2,545 1,879 182 202 4,808 73 14 26 113 67725°— VOL 2—11- 41 2136 REPOBT OF THE COMMISSIONER OF LABOR. APPROXIMATE COST OF THE COMPENSATION ACT TO INDUSTRY. While the data quoted above as to the activity of factory inspectors in adjusting claims under the compensation act do not in(;lude the entire number of accidents, they nevertheless furnish valuable mate- rial for an approximate estimate as to the financial burden whicli the act places upon the entire industry. Taking the average amount of pension for fatal cases, and all cases of permanent disability, total as well as partial, the total amount of pensions paid for all accidents of these classes may be computed on the assumption that the average compensation in cases not certified by ins[)ectors was equal to the average in cases so certified. To eliminate annual fluctuations, averages for the 3-year period, 1904 to 1906, are taken. NUMBER, AMOUNT, AND CAPITALIZED VALUE OF PENSIONS, BY RESULT OF INJURY, ANNUAL AVERAGES FOR 1904 TO 1906. Result of injury. • Number of cases. Average pension. Total pen- sions. Capitalized value. Death 362 63 8,092 $62.38 101.54 14.45 $22,581.56 6.397.02 116,929.40 $225,815.60 63,970.20 1.169,294.00 Total permanent disability Partial permanent disability Total 8,517 17.13 145,907.98 1,459,079.80 In addition to this the cost of accidents resulting in temporary disability must be considered. For this data are available in the statistical reports concerning accidents in industry. The annual average number of days of treatment for all cases of injury during the three years, 1904 to 1906, was 1,340,868 days, which presupposes the payment of an equal number of daily allowances, or wages for 670,434 days; taking the average number of working days per annum to be 260, according to the Russian compensation act, the total sum of allowances paid must be equal to 2,579 annual wages. From this number and the average wages the cost of temporary disability may be estimated. The average aimual wages in establish- ments subject to factory inspection in 1904 was $110.17, in 1905 $105.84, and in 1906 $119.32; and the average for 1904 to 1906 is $111.78. The total amount paid out annually in allowances for temporary disability may be computed at $288,280. The average amount of the payments made annually under the compensation act may thus be estimated at $1,747,360, which does not include the cost of medical treatment. The total amount paid out in wages in establishments subject to factory inspection is not available, but it may be computed since the average wages for about 75 per cent of all the wage-earners are given. The average wage being $111.78, and the average number of wage- earners about 1,678,000, the total wage expense would amount to $187,566,840. CHAPTER IX, workmen's INSURANCE IN RUSSIA. 2137 The proportion of the cost of the compensation act to the total wage expense is therefore equal to about 1 per cent (0.93 per cent). To this must be added the cost of medical help. The total cost of medical aid in factories in 1907 has been determined at $4,874,052; but what share of it should be charged to industrial accidents it is impossible to determine. In view of the low rate of wages and the fairly high remuneration of medical work, the cost of medical help may equal the amount of financial assistance in cases of temporarv disability. This would mean an additional charge of about 0.15 per cent, and the total charge upon industry equals only 1.08 per cent of the wage expense. That this estimate is not far from truth is evidenced b}^ the data in regard to the activity of mutual accident insurance companies. In 1905 the average premium amounted to 1.46 per cent of the wage expense, and in 1906 to 1.55 per cent. If for the previous years the premiums were very much lower, it was not only because it was before the law of 1903 went into effect, but also because among the mutual associations existing before 1905, those of textile districts, with a comparatively low accident rate, were most numerous. The average premium is higher than the computed cost. It may partly be accounted for by the added cost of administration; partly, perhaps, by the fact that the assumed cost of medical treatment in the computation was too low. With an average daily wat^e of ($111.78-4-260) 43 cents, which gives a daily sick allowance of 21.5 cents, the cost of medical and especially surgical treatment in acci- dents may be much higher than that of the sick benefits, as assumed. It may safely be said therefore that on the whole the system of compensation as established by the law of 1903 has added less than H per cent to the wage expense of Russian manufacturing industry, and its cost to the employers is equal to about 1} million dollars annually. PRIVATE VOLUNTARY ACCIDENT INSURANCE. COMMERCIAL COMPANIES. Insurance against accidents was altogether unknown in Russia before 1888, when a Russian fire and fife insurance company beiran to write such insurance. In the preceding year, 1887, the Ministry of Interior had approved the conditions under which such insurance might be written, and these became the standard rules for all other insurance companies. The main conditions imposed upon the insurance companies, in writing accident insurance for workmen, by the regulations of 1887 were as follows: The workman was insured for a definite sum against death, permanent, and temporary disabiUty caused by accid ental injury while at work.(«) Excepted from « Litwinov: Otvietstvennost predpriminatelei. p. 234. Press, A. A. : Strakhovanie rabochikh, p. 6. 2138 BEPOBT OF THE COMMISSIONER OF LABOE. insurance were: (1) All usual diseases and their results not caused by industrial accidents, ruptures, or other injuries caused by lifting excessive weights, etc.; (2) injuries caused by vis major, by cala- mities such as war, illegal acts or malicious intent of the insurer (that is, the employer) (") or of the injured employee, or injuries received in fights, quarrels, state of intoxication or insanity; and (li) injuries received outside of regular employment of the insured. Thus the extent of apphcation of the insurance system was nearly equal to that of the usual compensation act, though it did not pre- vent Htigation. In case of death the total sum of insurance was to be paid to the widow and orphans; when the victim was single one- half of the sum of insurance to the parents. Cases of permanent disability were divided into three degrees: The first degree of complete disability included the complete loss of sight, or of both arms or legs, or one arm and one leg, or complete incurable insanity, to be compensated by the full pension specified; the second degree included cases of permanent disability, with loss of one-half of earning power, such as loss of one extremity, entitling tlie injured to one-half of the full pension; and, third, lighter forms of injury, resulting in partial though permanent disability of lower degree, compensated by pensions of from 10 to 25 per cent of the full pension. For temporary disability the insurance company was to pay a daily allowance, agreed upon in the policy, during disability not exceeding 200 days. The pensions paid for permanent disability could be changed to a lump sum upon agreement between the insurance com- pany and the insured (the employer) . Rossiia was a general insurance company which introduced accident insurance in Russia in 1888. Later in the same year a special accident insurance company was organized and another one in 1892; two general insurance companies began to write accident poHcies in 1896 and four in 1898. Altogether nine insurance companies wrote acci- dent policies in 1903, when the new accident compensation law was passed. The number of workmen insured in these companies was as follows: NUMBER OF PERSONS INSURED AGAINST ACCIDENT IN PRIVATE INSURANCE COM- PANIES, 1888 TO 1903. (Source: Press, A. A.: Strakhovanie rabochikh v Rossii, St. Petersburg, 1900. Prokopovlrh S N • K. rabochemu vaprosu v Rossii, St. Petersburg, 1905.] , . .. Year. 1888. 1889. 1890. 1891. 1892. 1893. 1894. 1895. Number insured. 40,196 70.807 93,432 106,227 117,850 133,952 152,937 205,274 Year. 1896. 18tf7„ 1898. 1899. 1900. 1901. 1902. 1903. Number insiu-ed. 274,066 395, 148 (>H4,766 6 821,525 936,309 911,413 8 in 1888 and $11.97 in 1898. These figures show that the individual accident insurance included few persons of the working class. The total amount of premium received and the benefits paid bv the insurance companies as well as the other expenses of the companies in connection with accident insurance and the surplus remaining, are stated for both forms of insurance combined. The amount of benefits paid under the two forms of insurance has increased from $17 947 inl888 to $585,548 in 1898. The expenses of the insurance companies o Strakhovanie rabochikh v Roasii, 1909. A. A. Press. 2142 KEPOBT OF THE COMMISSIONER OF LABOE. Other than for benefits, amounted to $275,204 in 1898. The reserve surplus and profits for 1898 was $318,994, or 46 cents per capita. The business of accident insurance evidently was fairly remunera- tive, and the total profits were rapidly growing, amounting for the entire decade to nearly $900,000, notwithstanding the very high expenses for commission to obtain business (ove? $560,000) and for administration (nearly $500,000). Thus for the eleven years for which the statistical data are available $3,859,871 was rtjceived as premiums for insurance, wliile only $1,861,289 or less than one-half was used for actual compensation of the injured employees. Wliile with the increase of the volume of business the average per capita charge for administration had dechned materially during the ten years, 1889 to 1898, the cost of commission for obtaining new busi- ness has shown a shght increase. There was a dechne in the total per capita expense, from 90 cents in 1889 to 39 cents in 1898, and appar- ently the greater part of it appears in the increased per capita benefits paid to the injured employee. The per capita amount of compensa- tion increased from 44 cents in 1889 to 84 cents in 1898, while the profits of the insurance companies wliich were high in the earlier years dechned considerably. Under the influence of competition from newly organized accident insurance companies, the proportion of the pre- miums paid to the insured in benefits increased from 21.6 per cent in 1889 to 49.6 per cent in 1898. In 1898 the expenses other than for benefits were 23.4 per cent of the premiums and the surplus 27 per cent. The average premiums increased with the increase of the sum of insurance and also with the assumption by the companies of the civil habihty of the employers from $0.70 per workman in 1888 to $1 46 per workman in 1 898 . Assuming the average wages for these 1 years to have been about $105, the average rate of insurance increased from seven-tenths of 1 per cent to about 1.4 per cent of the wage expense- It was considerably liigher in some industries, as for instance in mining' winch perhaps explains the small number of miners insured. This excessive cost of private insurance was mentioned as an argument for compulsory state insurance during the dehberations of the C^ongress of Commerce and Industry in 1896. It was also claimed that in actual practice private insurance did not prove as favorable to the employees as in theory, the insurance companies often forcing the injured workman to accept a very low compensation. _ New regulations for insurance companies, issued after the act of June 2 (15), 1903, went into effect, provide substantially that the insurance company shall assume all the duties and responsibihties under the law of June 2(15), 1903, in consideration of the payment of a premium, agreed upon between the insurance company and the employer, in terms of a definite percentage of the latter^s wage expense. It was the avowed purpose of the law to stimulate the insurance of T I I CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2143 the employers' obligations under the law, although such insurance was not made obUgatory. Rules for the regulation of such insurance were issued by the minister of interior on December 22, 1903 (Januarv 4 1904). ^ ' The insurance company may decline to accept any msurance with- out stating its reasons for so doing. The employer* must furnish the msurance company with an exact account of its wage expense, including the expense for board and lodgmgs of the employees and other forms of remuneration for work. Such a contract relieve* the employer of all responsibilities accordmg to the law, the insurance society assummg all such responsibihties; it receives information of all accidents, and must meet its obligations without delay; and it makes agreements with the injured or members of their families. Whenever the accident is due to the fault of the insured employer, as established by the courts, this does not relieve the msurance company of Its responsibmty to the injured employee; but the msurance com- pany may recover the cost of the compensation and pensions from the employer. Such msurance may be organized with participation of the msurmg party m the profits, and then 75 per cent of the profits must be redistributed among the insured employees accordmg to the amount of annual premiums paid. This was a modification of the plan of collective insurance. Another form of insurance is also recognized, known as '^ insurance of employers' liability." This is a combined form of insurance, as It covers both the hability under the new law of 1903, and under the general civil laws when the new law is not apphcable. Under this form of insurance the obligations of the insurance company are toward the employer and not toward the injured employee, and the obligations of the employer toward the workmen are not transferred by law. The agreement as to the amount of com- pensation IS made between the employer and employee, but m presence of a representative of the insurance company, and the amount of the compensation agreed upon is bindmg upon the insurance company only when approved by its representatives; otherwise the msurance company assumes obligations only up to the amount approved by its representatives. It is evident that under such contract the employer wih rarely agree to anythmg not accepta- ble to the insurance company. If, therefore, an amicable settlement is found impossible, the msurance company assumes all obligations which may be imposed upon the employer by a court of law, pro- vided, however, that the msurance company is not responsible if tlie accident was due to the criminal negligence of the employer, as estab- lished by the verdict of the court. The obligations of grantmg medical assistance are not assumed by the msurance company. 2144 BEPORT OF THE COMMISSIONEfi OF LABOR. This is a form of insurance of the employer rather than of the employee, and it does not fulfiU the requirements of the compensation act m regard to insurance of workmen. These conditions sf.mewhat approach the form of insurance proposed by the St. Petersburg? Mutual Insurance Society, which failed to receive the approval of the Gov- ernment in 1898. From the first day of the application of the new law serious diffi- culties arose between the employers and the insurance companies. The law clearly meant an important extension of the rights of the employees, which was equivalent to an increased burden upon indus- try. But there were no definite data by which the cost of this law to mdustry could be determined, for the available statistics of accidents in Kussia were for only one year and were incomplete. Insurance seemed the only way for the manufacturers to protect themselves from excessive losses; but in view of the increased amount of compensation as compared with that paid by the private insurance companies prior to 1903 the insurance companies were uncertain and the rates quoted to manufacturers for insurance were very high, bemg for some industries 10 or even 14 per cent of the wages. A concerted movement was started among employers to ol)tain from the Govern- ment some delay of the date of enforcement of the law; petitions to that effect from the mining operators and metallurgical establish- ments of the south, the u-on and steel manufacturers of the Baltic Provinces and the north, and from the manufacturers' association of St. Petersburg. But all these petitions were declined by the authori- ties, and the law went into effect on June 1 (14), 1904. Two courses were left open to the employers who objected to the excessive rates quoted by the private insurance companies: Either to take the risk upon themselves and carry no insurance, or to organize mutual msurance companies. In the beginning a majority of em- ployers preferred the first course, while the larger establishments organized private insurance funds for themselves. The experience of some industries during the first year established the fact that the cost was far below the estimates of the private insurance companies. As a result the amount of private accident insurance rapidly feU smce 1 903. Unfortunately it was impossible to obtain complete data in regard to the activity of all private accident insurance companies since the enactment of the law. But the tendency is sufficiently clearly demonstrated by the data in regard to the insurance company liossua, which was the leading accident insurance company in Kussia. In 1898 356,179 wage-workers out of a total of 684 766 insured, or 52 per cent, were insured in ^^Rossiia." In the year 1Q05 there were only 87,015 persons insured, being a decline of 75 per cent in 8 years. The number of persons insured under the collective form m this company for the 7 years 1900 to 1906 is shown, together with CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 2145 the amount of insurance carried, in the following table. The decrease is seen to have been over 80 per cent. The decline began as early as 1901, when the probability of some law granting compensation to injured workmen became strong, and because of the growth of mutual insurance. From 1902 to 1903, when the law was passed, the decline was 22.2 per cent, or nearly one-fourth. In 1904, when the law went into effect, the decline was almost one-half. NUMBER OF PERSONS INSURED AND TOTAL AND AVERAGE AMOUNT OF INSURANCE AGAINST ACCIDENTS UNDER THE COLLECTIVE ACCIDENT INSURANCE OF THE ROSSIIA COMPANY. 1900 TO 1906. [Source: Assuranz Compass, 1908, p. 564.] s. Number insured. Amount of insurance against — Year. Death. Permanent (Usability. Temporary disability (per day). Total. Average. Total. Average. Total. Average^ 1900 464,612 402, 144 350,937 279,919 137,351 87,015 88,766 $158,637,474 138,230,612 127,716.166 96,578,910 117.137,543 63,975,809 60,972,914 $349 344 354 345 853 735 687 $229,136,323 201,568,836 187,778,597 143,114,424 160.953.297 90,029,701 86,529,662 $504 501 522 511 1,172 1.042 975 $76,804 61,615 57,438 39.523 22,905 11,544 11, 161 $0.17 .15 .16 = 14 1 *T 1901 1902 1903 1904 1905 .17 .14 1906 employers' mutual accident insurance ASSOCIATIONS. A movement toward mutual accident insurance appeared among the more progressive manufacturers in the middle of the nineties, simultaneously with the growth of private insurance. The Riga plan was the first outgrowth of this movement. The authorization by the Ministry of Finance of the by-laws of the *'Riga Society for Mutual Insurance of Manufacturers and Artisans against Accidents to their Workmen and Employees" in January, 1898, marked a definite step toward progress. A plan of a mutual insurance company was also elaborated by the manufacturers of Odessa which was more liberal than the Riga plan, but aftei the approval of the Riga plan by the Government the Odessa employers accepted its by-laws for their own organization. The Riga society, though a purely voluntary association, consid- erably influenced further legislation, and therefore deserves special consideration. In addition, as an organization of the employers onlv, it extended its liabiUty, i. e., the Uability of employers, beyond the limits estabHshed by law and most favorable judicial decisions. The society undertook to conduct the defense, in all cases where a lawsuit had been instituted, and to meet the burden of a judgment. Wiile this determines the responsibihty of the society toward the employers, the by-laws separately stated the obligations toward the employee, 2146 REPORT OF IHE COMMISSIONER OF LABOR. which were wider than those imposed by the law, or even by the private insurance companies. According to section 3, all injuries to workmen and employees were to be compensated unless caused by— 1. Unpreventable and unexpected external forces (vis major); 2. By acts of third parties, having no connection with the industrial establishment ; 3. Such intentional acts of the fellow-servants as are not connected with the nature of the work; 4. Gross negligence of the injured. The burden of proof that any of these conditions existed was placed upon the society. Roughly, then, the by-laws of the Riga company excluded mjuries due to ''vis major," to gross negligence, and to willful misconduct of employees or strangers. By this exclusion the protection granted extended not only to all cases where negligence of the employer or fellow-employee could be charged, but also to all cases of normal trade risk, to which the vast majority of industrial accidents is due; and not even contributory negligence of the injured deprived him of the right to compensation. As was shown above, this entire section went into the governmental plan with the one change of ''gross negligence" for ."malicious intent." The amounts of compensation being definite, there was no occasion for striking any bargains; but the workman not being a direct party to the contract, nothing could interfere with his effort to obtain a remedy under the old laws of civil responsibility. For permanent complete disability a life pension was given, amounting to the last year's earnings when not over 240 rubles ($123.60); 66? per cent of the last year's earnings to single men or to women, and 75 per cent to married men, but in any case not less than 240 rubles ($123.60) when the last year's earnings were over that amount. In case of death resulting from the injury within one year after the accident the widow or dependent widower was entitled to a pension amounting to 30 per cent of the last year's earnings, to be paid until death or remarriage; to each child until 15 years of age, 15 per cent if one parent survives, and 20 per cent if neither survives, and to the dependent parents 15 per cent each; the total amount of the pensions not to exceed 60 per cent of the annual earnings, and the shares of all the participants to be reduced accordingly. Temporary disability lasting more than 5 days entitled the injured to an allowance equal to one-half of the daily earnings, or more, in the discretion of the society. The compensation system of the Riga society was more liberal than that of the law of 1903, because it granted a pension of 100 per cent in cases of complete permanent disability where the annual earnings were less than 240 rubles ($123.60) and a minimum pension of 240 rubles ($123.60) where the earnings were larger than 240 rubles ($123.60), while the law of 1903 allows only 66§ per cent of the earn- - CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2147 ings. This may easily be explained, however, by the fact that in a law intended for the entire Russian Empire the minimum wage could not be as high as for the modern industrial center like Riga, where the wages are considerably higher than in the east. It was shown in a preceding section that the average wages for the entire country were considerably below 240 rubles ($123.60). The Riga mutual insurance society began its operations in 1898 with a little over 3,000 employees insured. The Odessa society, organized under the same by-laws began its operations in 1900, and another society was formed in the textile center Ivanovo Vosnesensk in 1901. The total number of employees insured in these mutual insurance companies in 1900 was 16,429; in 1901, 29,048; and in 1902, 76,046. The three mutual insur- ance societies named above existed in Russia before the adoption of the law of 1903. When the rules for collective insurance were promulgated by the minister of interior these three societies were provisionally permitted to continue their activity under these new rules. Similar mutual insurance companies rapidly sprang up in other industrial centers, some of them territorial associations of employers of various industries, others combining scattered estab- lishments in one definite branch of industry. The Kieff mutual accident association began its operations in Sep- tember, 1904, the Moscow, St. Petersburg, Warsaw, Odessa, and Kieff sugar manufacturers' association in 1905, the Bielostok and Emseisk associations in 1906. Similar associations have been estab- lished since then in Vilna, Lodz, Tzaritzin, and other industrial centers As examples of industrial mutual companies, may be mentioned the Mutual Accident Insurance Society of Einseisk, organized in November, 1905, by the association of the gold mine operators of the Emseisk mining region, and the ^' Black Sea Shipowners' Mutual Association for Insurance Against Accidents to their Employees " orgamzed in Odessa in August, 1905. Of these two, the former includes some establishments to which the law of 1903 is applicable and others still subject to the general provisions of the civil law and the society insures against liabihty under either, according to the general regulations of the minister of interior for such insurance While the by-laws of each of these mutual societies must be specially approved by the Ministry of Interior, yet with very few minor excep- tions they are modeled after one uniform plan. Participation in these societies is altogether optional, and may be canceled at will. The societies are permitted to reinsure their risks; they are also permitted to write accident insurance for individuals, and also insurance against hability for injuries sustained by persons who are not employees The management of the society is intrusted to a board of directors elected by the members; the latter have a vote if they insure at least 10 employees, and one additional vote for each 100 employees but 2148 BEPORT OF THE COMMISSIONER OF LABOR* not over 5 votes to each employer, or his [)roxy. The determina- tion of the rate of the premium, which must vary with the nature of the industry^ is left to the general meeting of the members. All establishments manufacturing explosives are excluded. Any other industry or establishment may be denied admission by the general meeting of the members. When the premiums collected are not sufficient to cover the liabilities incurred by the societies, the members may be assessed in proportion to the premiums they pay. In Riga, where the first employers' mutual accident insurance society was organized in 1898, a new mutual society was formed in 1906 by proprietors of commercial, building, and construction enter- prises, some rural industrial establishments, and similar fiinis which do not come under the action of the law of 1903, for insurance against civil liability; but the important feature of this society is that it offers to the employees a system of compensation '' according to the regula- tions of the law of 1903." This is a direct voluntary extension of the law, to establishments specifically excepted from it, by the employers who prefer the obUgations of the law of 190;] to the cost and results of litigation. A somewhat similar condition is found in the Black Sea Ship- owners' Mutual Association, above mentioned. As was pointed out previously, the law of 1903 does not apply to shipowners, which are subject, together with the railroads, to the special law of the civil code. This society obligates itself to pay compensation for all acci- dents, unless due to the malicious intent or gross negligence of the injured. Its scale of compensation is more liberal than that of the law of June 2, 1903. In case of complete permanent disability it pays 66J per cent of the actual annual earnings to a single person and 75 per cent to a married person, but in no case is the pension for total permanent disability to be less than 240 rubles ($123.60). A proportionate part of this pension is given for partial disabihty. The scale of pensions in case of fatal accidents is the same as in the law of 1903. The allowance in case of sickness is 75 per cent of the daily earnings (and not 50 per <;ent, as in the compensation act), and may be increased to the full daily earnings, in consideration of special circumstances. The comparatively favorable conditions of this system of insurance are said to be due to the great demand for labor in Odessa. The rapid growth of insurance of workmen in such mutual em- ployers' associations is shown by the following table, from which it appears. that the number of wage- workers insured has increased from 76,046 in 1902 to 311,689 in 1906, or more than fourfold iniour years. CHAPTER IX.— workmen's INSURANCE IN RUSSIA. 2149 NUMBER OF SOCIETIES, PERSONS INSURED, WAGES OF INSURED WD VUVxirryMo PAID IN EMPLOYERS' MUTUAL ACCIDENT INSURANCE SOc'ETmS. 1^ TO iLT [Source: Soviet Siezda Gornopromyshlennikov Iu.a Rossli. ^ Zakonoproekty po Stkakhovaniu rabo^hikh. Year. 18d8. 1899. 1900. 1901. 1902. 1903. 1904. 1905. 1906. Number of active societies. 1 1 1 2 3 3 4 8 10 Number (rf persons in- sured. 13,728 17,000 25,156 27,831 76,046 94,403 158,304 258,033 311,689 Total wages of insured. («) («) (°) $3,861,698 («) 8,558,292 15,701,083 28, 005. 587 35,313,308 Annual premiums Amount. $15, 773 33,046 45,045 42,786 59,468 75,982 180,494 409,618 547,001 Per f ►er- son in- sured. $L15 1.94 L79 L54 .78 .80 1.14 1.59 L75 Per c-ent of wages. 1 Ml 89 15 L46 L55 o No data available. The average amount of premiums per person insured is subject to fluctuations, which may be explained, however, by the diflfer- ences m the compensation of the total number insured. In other words, the data for different years are scarcely comparable in any strict way, because each of the associations covered different indus- tries, with different accident rates, different wage levels etc As the number of associations and the number of persons covered in- creases, the averages become more valuable; the increase in both averages shown (per person insured and per $100 of wages) in 1904 IS easily explained by the effect of the law, and for 1906 we find an average premium of a httle over IJ per cent of the wage expense which corroborates the computation made on page 2137 For the separate mutual associations the data are more comparable from year to year. They are shown in the following table: NUMBER OP PERSONS INSURED, WAGES OF INSURED AND PRFUTims k.tt^ ,v- BrsocyE™s"""''^'' ^'''"^''^ ™^''«^'"^'= -ocf^^^Zors^^r^iij^z^i fSourc: Soviet Sle,.da «°™Pron.yshlcnnlkov^Iu._a^R<^^ Zatonoproek.y p„ Stkakhovaain raboohikh. Society. Number of persons in- sured. Riga Mutual Association: 1898 1899 1900 1901 1902 1903 1904 1905 1906 " Total wages of insured. Annual premiums. Amount. 13,728 17,000 17, 210 20,280 22,848 27,902 57,223 58,628 63,681 oNot reported. «) («) $3,014,304 3,285,029 3, 46(), 945 6,907,178 8,766,330 8,661,662 Per per- son in- sured. $15,773 $1.15 33,046 1.94 33,193 L93 30,025 L48 35,017 1.53 45, 161 1.62 121,468 Z12 159,235 2.72 182,341 2.86 Per cent of wages. (a) (") 1.0 1.1 L3 L8 1.8 2.1 2150 EEPOET OF THE COMMISSIONER OF LABOR. NUMBER OF PERSONS INSURED, WAGES OF INSURED, AND PREMIUMS PAID IN EMPLOYERS' MUTUAL ACCIDENT INSURANCE SOCIETIES, FOR SPECIFIED YEARS BY SOCIETIES -Concluded. Society. Odessa Mutual Association: 1900 1901 1902 1903 1904 1905 1906 1907 !-!!!!!!!!;!]!!!! Ivanovo Vosnesensk: 1902 1903 ; 1904 1905 1906 Kief: 1904(6) 1905 1906 [[][]"" Moscow ( First Russian Insurance Association ) 1906 ;".;;; St. Petersburg: 1905 1906 '.'.'.'." Warsaw: 1905 1906 '".'.'.'." Kief (sugar): 1905 1906 1907 ;;;;;; Bielostok: 1906(c) 1907 («i) '.'.'.'.'.'... Eniseisk: 1906(«) 1907 (/) ;;;;; Number of persons in- sured. 7,946 7,551 7,178 6. 930 6,694 7,191 7,372 7,556 46,020 f9,571 74,307 74,699 84,717 20,080 25,061 33,272 33,883 48,356 29,782 34,470 23,917 28,633 4,872 7,246 10,395 3,942 4,066 Total wages of insured. $825,397 847,393 933.347 937, (J38 962,:}66 1,045,624 1,040,114 1,069,592 (») 4, 149, 159 7,082,474 6,584,140 8,801,231 749, (i44 960,«i84 1,535,154 3,382.890 5,368,763 4,280.979 5,283.(100 2,801,(30 3,(31.780 234.312 32(5, H09 444,898 467.203 523 (134 196.«»95 • 303.263 Annual premiums. Amount. $11,853 12,761 13,218 12,817 22,659 25,618 26,233 24,935 11,224 18,004 29,318 33, 547 38,152 7,048 27,011 36, 213 42.565 76,681 52,205 69,310 63,129 91,919 6,307 9,013 10,306 10,766 15,817 6,373 9,611 Per per- son In- sured. $1 49 1 69 1.84 1 85 3 38 3.56 3.56 3.30 .24 .30 .40 .45 .45 .35 1.08 1.09 1.26 1.59 1.75 2.01 2.64 3.21 1.29 1.24 .99 2.73 3.89 Per cent of wages. L4 1.5 L4 1.4 2.4 2.5 2.6 2.3 (») ,4 .4 .5 .4 .9 2.8 2.4 1.3 1.4 1.2 1.3 2.3 2.5 2.7 2.8 2.3 2.3 3.0 3.2 3.2 o Not reported. f> From September to December. c December 1 1905, to December 31, 1906. d January 1, 1907, to October 1, 1907. ' April I to October 1, 1906. / October 1, 1906, to October 1, 1907. PBOPOSED BEFOBMS. BILL OF 1905. The step from voluntary to obligatory insurance was proposed in the draft of a law which was first published early in 1905. When the compensation act was passed the minister of finance w^as directed to prepare plans for a comprehensive scheme of workmen's insur- ance. In accordance with an imperial ukase the committee of ministers on December 24, 1904 (January 6, 1905), instructed the minister of finance to organize in conjunction with the Bureau of Industry of that ministry an inter-departmental commission for the preparation of a plan for insurance against accidents, sickness, and old age and invahdism. Representatives from all important cham- bers of commerce, mutual insurance companies, and other commercial bodies were invited into the commission. These resolutions of the CHAPTER IX. workmen's INSURANCE IN RUSSLl. 2151 minister's committee were approved by the Emperor on January 17 (30), 1905; and the first draft of the complete law for all three branches of workmen's insurance was made public on March '>9 (April 11), 1905. This new draft did not change the essential provisions of the com- pensation act of 1903 or extend its scope, but simply applied the prin- ciple of obligatory mutual insurance and corrected a few of the defects of the existing system. It also excepted all cases during the first 6 weeks of sickness, which were to be transferred to the sick bene- fit associations to be organized in connection with sickness msurance. Each employer subject to the law of 1903 was to join either an mdustrial or a territorial association of employers; in exceptional cases of isolated establishments exceptions might be granted, and in such cases the old rules of 1903 remained in force unchanged'. DRAFT OF 1906. The character and extent of the Compensation Law of 1903 was not affected by the plan of 1905. But within the last three or four years the need of introducing radical changes m the compensation law was widely discussed. In April, 1906, an interdepartmental conference, increased by invited representatives of commercial or- ganizations and economic science, with the minister of commerce and industry, elaborated a new draft of an accident insurance law. This draft of 1906 represented in the main a combination of the law of 1903 and the plan for the organization of the territorial insurance associa- tions of 1905. But there were important modifications. The excep- tion of accidents due to gross negligence from the application of the law was abolished, only accidents due to the malicious intent of the injured being excepted. Other changes suggested are: The increase of the compensation for temporary disability from one-half the daily earnings to two-thirds ; but with it a transfer of the care of all cases during the first six weeks from the accident insurance associa- tions to the sickness insurance societies, the organization of which was contemplated; the increase of the number of annual working days to be used in computing annual earnings from 260, as in the law of 1903, to 280. SILL OF THE CONSTITUTIONAL DEMOCRATIC PARTY. In the first Duma, which was in session during the summer of 1906, many labor bills were introduced. The bill referring to work- men s accident insurance was based upon somewhat broader princi- ples than the draft of the Ministry of Commerce and Industry of 1906 Proceedmg from the existing law of 1903, the plan embodied the foL lowing general principles: The extension of the law to all employees 67725°— VOL 2—11- -42 2152 REPORT OF THE COMMISSIONER OF LABOR. m industry, transportation, agriculture, and building; an increase of the pensions to the surviving children from one-sixth of the wages, as in the law of 1903, to one-fifth, and when orphans to one-fourth^ the total limit of pensions remaining the same, namely, two-thirds of the wages; the raising of the age limit of children entitled to com- pensation from 15 to 17 years; the establishment of arbitration courts with representatives of capital and labor; and a system of obligatory insurance, with the privilege of choice between insurance in a mutual employers' association, a central government msurance office, or a private authorized insurance company. DRAFT OF 1907. The governmental consideration of an accident insurajice system continued in December, 1906, and February, 1907. Anotlier official draft was published in February, 1907. The draft of 1907 did not accept the suggestions as to the increase of the allowance for tempo- rary disability from one-half to two-thirds the daily wages, nor as to the increase of the age limit of the children from 15 to 17 years; but the number of annual working days was increased from 260 to 280 days, the qualification of gross negligence was eliminated, and per- haps the most important change was the inchision of railroads, steam- ship, and street railway companies; the draft is also moie compre- hensive than the law of 1903 as to the size of the manufacturing or mmmg establishments covered, including all establishments using mechanical or animal power or, when not using such power, employing not less than 10 wage-earners. In the matter of organization of obligatory insurance, the draft of 1907 adheres to the Austrian models embodied in the draft of 1905; it requires the establishment of territorial employers' organizations and provides for industrial employers' organizations in exceptional - cases by special permission of the central authorities. BILL OF 1908. After more than three years of deliberation a draft of the bill was a^eed upon by the Government and introduced into the Duma on June 25 (July 8), 1908, together with many other labor bills. The bill of June 25, 1908, preserves the Austrian form of territorial mutual insurance associations; but the organization of industrial msurance associations in exceptional cases may be permitted by the central insurance council to be established in connection with the whole insurance system. Government establishments are excepted from obligation of insurance, also estabfishments owned by the "Zemstvos" (provincial organs of self-government) and by munici- palities. Isolated establishments may also be relieved from the CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2153 obligation by the insurance council. In the financial arrangements the Austrian system is also followed, and the capitalized value of the claims annually arising must be met by assessments for that year. The insurance associations must therefore establish a reserve and a surplus fund. The reserve contains the capitalized value of the obligations, and the surplus formed from the profits, etc., is to be used to meet unexpected losses. The funds are to be invested in govern- ment bonds or other securities guaranteed by the State, such as municipal land bank bonds and similar securities on a list authorized by the Government, and must be deposited with the state bank or sub- treasuries. By special authorization of the insurance council they may also be invested in real estate, in construction of hospitals and invalid homes, or in loans to members for construction of cheap dwellings, schools, hospitals, or similar institutions for the benefit of the employees. The insurance associations are to be self-governing institutions under the supervision of the central workmen's insurance council. The constitution is to be prepared by representatives of industrial establishments. The constitution may be revised by the insurance council and must be approved by the minister of commerce and industry before it goes into effect. In case of failure of the associa- tion to prepare the draft of such constitution, the council may prepare one and present it to the minister for approval. The administration of the affairs of each association must be lodged in the board of directors and the general meetings of the members or their delegates, also an auditing committee and other select committees. The general meeting must prepare the scale of contributions of indi. vidual members, with consideration of comparative hazard, and pre- sent it to the insurance council for approval of the minister of commerce and industry. In case of failure to prepare such a scale, or if the scale presented is not approved, the council mav enforce one established according to its judgment. The contribution levied by the mutual associations must be paid promptlv, and the association IS empowered to levy fines for delay, and may coUect the amounts due through the police. Such fines must be determined by the general meetmg. The insurance associations, in the general meeting, may also establish rules and regulations for prevention of accidents pro- vided they do not conflict with existing legislation, and enforce them upon the members by means of fines up to 300 rubles ($154 50) It may establish premiums for saving of lives and for mvention of safety appliances and devices. In so far a*, the organization of these mutual employers' insurance organizations are concerned, this bill does not differ in its principles from the drafts of 1905 or 1907. But the essential difference lies in 2154 REPORT OF THE COMMISSIONER OF LABOR. the absence of any provision for special insurance courts with repre- sentatives of employers and employees, which courts were i)romised in the draft of 1905 and which many students of labor insurance in Russia think essential to the proper working of the law. Many more or less important modifications of the law of 1903 are introduced in this bill. The primary purpose is the establishment of a system of compulsory insurance. On the other hand, many rules of 1903, which the draft of 1907 showed a desire to amend, have been retained. An important amendment of the law, su«,'gested in th(i draft of 1908, is the exclusion of all reference to neghgence, only self-infhcted injuries barring the victim or his dependents from the right to com- pensation. On the other hand, the ^ppHcation of the law is con- siderably restricted as compared with the ecifically excepted, this leaves only the small private industrial raih-oads, while the bill of 1907 mcluded all railroad employees. Again, only those estabhshments are included which employ, steam or other mechanical power and at least 20 employees permanently, or 30 employees when no mechanical power is used. This estabhshes a much narrower restriction than the draft of 1907, which had a mini- mum of 10 employees only, and no minimum of the number of em- ployees at all where either mechanical or animal power is used. The allowance for temporary disabihty is increased to two-thirds of the wages, as proposed in 1906, and against one-half granted by the law of 1903 ; but the payments of these allowances by the accident insurance associations is to begin after 13 weeks, as against 6 weeks according to the draft of 1905. Thus an increased burden is placed upon the proposed sick benefit funds, to which the employees contribute an equal amount with the employers, and only for the working days is such allowance granted. However, when the injured is not a member of any sick benefit fund he is entitled to the compensation from the day of the injury. The cost of medical treatment must be paid by the accident insurance fund when it is not furnished by the sick benefit fund. The annual number of working days is reduced from 280, as sug- gested by the draft of 1907, to 260 days. There is no minimum pen- sion for complete disability, but the annual eammgs computed as above must not be lower for an adult than 260 times the standard wages of unskilled labor in the district. A full pension of 100 per cent is granted in case of complete helplessness, which is defined in the CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 2155 text to include only cases of insanity, total bhndness, and loss of both hands or both feet. These are the important modifications proposed in the rules of compensation as established by the law of 1903, the bill following quite closely the law in regard to other compensation. The substitution of the employers' association for the individual employers' responsibiUty has necessitated a complete change in the method of procedure. The essential point of the change is the com- plete elimination of the factory or mine inspector, who fulfills so important a function in the administration of the law of 1903. Notice of accident must be given to the poUce and to the insurance associa- tion, which may impose a fine for failure to give such notice. The association may send its agent to investigate the conditions of the accident, a function at present entrusted to the factory inspector. Both the claimant and the association may select their physicians, but the injured must allow himself to be examined by the associa- tion's physician, and on refusal to do so may be deprived of the entire compensation or part of it. Claims are to be made directly to the insurance association, which must render a decision within one month. Dissent from this decision must be lodged by the claimant within two months, after which the insurance association must reconsider the claim within one month. In case of further dissent with the decision, the case may be carried to court within 2 months. Wlien the difference refers to the amount of compensation, the claimant may accept the amount offered without prejudicing his right to sue. And when a claim, rejected by the association, is allowed by the courts, or the amount granted is increased, all payments overdue must be paid up with interest computed at 6 per cent an- nually. The bill endeavors to discourage premature suing in courts by providing that in going to court before first making a claim directly to the insurance association, or before the expiration of the terms established by the bill, the claimant loses the right to receive court expenses and court fees. Thus the procedure is simplified. Criticism has been passed upon this procedure because, while eliminating the factory or mine in- spector, it substitutes no one to guard the interests of the workman. It seems to be assumed that in dealing with the insurance associa- tion the claimant has less need of such protection than when dealing with an individual employer, but the wage-workers are not repre- sented in the insurance association. The plan for special insurance arbitration courts, included in the draft of 1905 to diminish tedious htigation, has been omitted in the draft of 1908. 2156 KEPOBT OF THE COMMISSIONER OF LABOE. STATISTICS OF ACCIDBNTS. ACCIDENTS IN MANUFACTUKINO ESTABLISHMENTS. The Statistics of industrial accidents in Russia are available for only a few years. Reports of industrial accidents were made obli- gatory on Ju y 1, 1895. According to the rule promulgated by the Mm,stry of Finance, reports were to be ma.ie of all accidf nts, whether to workmen, other employees, or strange persons, provided the injury results of this order were so meager that for five years the Bureau of Indus ry, which collected these data, did not find then, worthy o compilation and presentation. There was an improvement evidenced by the rapid increase m the number of accidents reported, and in 1901 The total number of accidents reported to the factory inspectors follSv n1 lab . T"*^' ''""'''^ ^^P^^"°" "-^P"'*^' '^ «how/in the' ollmvmg table to have increased from 27,135 in 1901 to 76,409 in 1908, or has nearly trebled. The increase came mainly in 1 9o4 after the "^t'od-iction of the compensation law, and as the increase' since has been slight the data for the later years appear to be fairly reliabk ''-''' '^^^.^.^t^k^eToS— ^^^^ -^--H. Year. Accidents reported. Fatal. 1901. 1902. 1903. 1904. («) («) («) 395 Nonfatal («) («) («) 60,302 Total. 27,135 29,349 35.138 69,697 ■ Not separately reported. Year. Accidents reported. Fatal. Nonfatal. Total. 1905 337 364 453 374 71.008 78. 370 8;).«05 76,035 1906 71.345 1907 78, 734 1908 84,358 — 76,409 In the preparation of the special statistical reports, a number of rie withT T "?'' 'r "'^"^ "^^'^"^' '^ ^'^^ *i^« j^^-^- parable with the statistics of persons employed. Since 1 904 the acci- he law Tn r / 1 '" "^ t° ^o^er only accidents as define.l in the law. In the foUowing table is given the number of accidents compared with the number of persons em,,loved. The proporUon SeTper Toor T^-^^' ^-- ''■' P- 1.000 employees InTool t 36.3 per 1 000 employees m 1906; even this proportion, however is very small as compared with that in other in.iustrial countries CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2157 ESTABLISHMENTS SUBJECT TO FACTORY INSPECTION AND EST ^BLISHMFXTS REPORTING ACCIDENTS, WITH NUMBER OF WORKMEN EMPLOYED ' \ND NUMBER OF ACCIDENTS REPORTED, 1901 TO 1906. ' ^vlmbj^k [Source: Ministerstvo Torgovli i Promyshlennosti. Otdiel Promyshlennosti. Statistika neschastnvkh 1^1-S.] '^^"^^"^ '' promyshlennykh zavedeniakb, podchinionnykh nadsoru librfchnoTii^SLu^ Year. Establi s h m e n t s subject to factory inspection. 1901. 1902. 1903. 1904. 1905. 1906. Num- ber, (a) ■ 17,538 16,085 16, 579 14.066 13,292 12,903 Workmen employed. Establishments reporting accidents. 1,690.906 1,649,972 1,682,672 1,651.957 1,044,218 1.658.985 Num- ber. 2,919 2,856 3,165 3,612 3,488 3,593 Per cent of total. Workmen employed. Number. 16.6 17.8 19.1 25.7 26.2 27.8 (6) 1,025,508 1,071,290 1,172,426 1,201,772 1,234,766 Per cent of all workmen subject to factory inspec- tion. Accidents reported. Number. 60.2 63.7 71.0 7.3.1 78.0 Per 1,000 work- men. 24,744 25,847 31,319 47,205 52,655 60,142 14.6 15.7 18.6 28.6 32.0 36l3 Per 1.000 : work- I men in I estab- lish- ' ments I report- i ing ac- cidents 25.2 29.2 40.3 43.8 48.5 a The reduction in the number of establishments is explained by actual siisnension of som^ h.,t xnaini^ SJh^r^^*?"*'' of estab ishments from the jurisdiction of faetorv insp^^on lXuitS.isrh?smanerTt^lJ 6 Not rep'^rtld"^^ affected, as indicated by the uniformity iE the number of workmen emp^oyeS^ Only 16.6 per cent of all establishments reported accidents in 1901, but by 1906 the proportion of establishments reporting increased to 27.8 per cent. The number of workmen in establishments reporting accidents in 1902 was 60.2 per cent of the total number of workmen subject to factory inspection, while in 1906 the proportion increased to 78 per cent. The increase both in the number of establishments reportmg and of the workmen employed in these establishments was greatest in 1904, when the accident compensation law first went into effect, thus indicating direct dependence of accident statistics upon the accident compensation law. But while the number of establishments reporting increased from 3,165 in 1903 to 3,593 in 1906, or 13.5 per cent, and that of workmen m the establishments reporting increased from 1,071,290 to 1,234,766 or 15.3 per cent, the number of accidents increased from 31,319 to 60,142, or nearly doubled. It would appear that the serious omis- sions m the statistics of accidents before 1904 were not due so much to establishments failing to report, altogether, as to reports from the larger estabhshments being incomplete. For a proper application of the data presented in the tables which follow these facts must be considered: (1) While accidents to stran-ers were reported, they were excluded from the compilation; (2) accidents to office employees subject to tlie law of 1903 were reported, but excluded because the total number of employees not being known then- mclusion would be a disturbing factor; (3) in the reports of 2158 REPORT OF THE COMMISSIONER OF LABOR. 1901 to 1903 accidents causing disability of not more than two days were excluded, and in the report of 1904 all accidents causing dis- abihty for not more than three days. This limits the comparative value of the reports for different years. In the vast majority of accidents the injuries are of slight duration; in 1904 out of 40 505 cases of temporary disabihty 12,441 cases, or 30.7 per cent, lasted four to seven days; the number of cases lasting three days, not reported f^^u^ though reported in earlier years, must have been considerable. (4) The data of mdustrial accidents collected by the factory inspectors refer only to those industries, estabhshments, and locahties whicli are subject to factory inspection. Therefore the so-called "artisans' shops" are excluded-i. e., the smaller industrial esta])lishments havmg less than 20 and in some cases less than 15 employees and not employmg mechanical power; also mines and metallurgical estab- lishments, for which separate accident statistics and a separate system of inspection exist, all state factories and mills, and all indus- trial establishments under the jurisdiction of the Ministrit^s of War Navy, and Ways of Communication. While these data refer mainly to the manufacturing industry, another important limitation is found in the circumstance that factory inspection has as yet been introduced only in the 60 Provinces of European Russia and in some parts of Caucasus-namely, the Provinces of Baku, Til lis, Ku tais, Cheniomorsk and Batum. Accidents in the industrial establishments of the remain- mg Caucasian Provinces in Siberia and central Asia are also required to be reported by the act of 1903, but because the reports were in- sulhcient and statistics of the number of workmen were lacking these have not been included. Accidents, by Industry, Sex, and AGE.-In the tables following are sho^vn the number of workers employed in each industrial group the number of accidents, and the number of accidents per 1 000 workers from 1904 to 1906. The data are given for all workers and separately for male and female workers; and also for adults (17 years and over), young persons (15 and under 17 years), and children (12 and under 15 years). The number of reported accidents per 1 000 workers has increased from 28.6 in 1904 to 36.3 in 1906. For' the male workers the number of accidents per 1,000 in 1906 was 45 9 and for the female workers only 13.1. This is partly due to the fact that women are mainly employed in those industries where accidents are less frequent, namely, the manufacture of textiles and food products, these two industrial groups employing in 1906 82 per cent of all female wage-workers and only 52 per cent of the male workers. But a difference in the frequency of accidents to males and to females m noticed m each industrial group, indicating that the men are pre- ferred for the more dangerous kinds of work, requiring close contact with power-generating engines and compHcated machinery I chapter IX. WORKMEN S INSURANCE IN RUSSIA. 2159 A comparison by the main age groups indicates that in 1906 the average number of accidents per 1,000 adults was 38.2, per 1,000 young persons 20.3, and per 1,000 children 15.3. No such concen- tration of the workers below 17 years of age exists as was found in the case of women, and the difference in the proportionate number of accidents seems to be mainly due to the nature of work intrusted to the younger employees. The comparative frequency of accidents in various branches of industry is also shown in these tables. In the following statement the industries are arranged in order of the accident frequency during 1900 : ACCIDENT RATE PER 1,000 EMPLOYEES, IN MANUFACTURING ESTABLISHMENTS, BY INDUSTRIES AND SEX, 1906. [Source: Ministerstvo Torgovli i Promyshlennosti. Otdiel Promyshlennosti. Statistika neschastnvkli slucliaev s rabochinii, 1906.] Industry. Machinery Iron and steel Mineral products, not speci fled Mineral-oil products Chemicals. Explosives Lumber sawing Metal work, not specified Woodworking, not specified . Paper manufactures Glass Cotton manufactures Flax, hemp, and jute Flour millmg Accident rate per l,Ouo employees. Males. 141.1 143.2 69.5 6L6 48.3 .50.2 38.2 40.9 32.3 41.7 27.6 33.3 22.8 21.0 Fe- males. 19.3 32.0 22.4 1L9 16.5 49.6 23.8 42.4 7.0 15.5 14.9 20.0 3.8 Total. 140.2 136. 6 64 6 51.4 47.3 42.4 38.5 38.5 35.0 26.3 25.8 24.1 21.4 20.7 Industry. Sugar Chemical industry, not spec- ified r... Paper, parchment, and wall paper Animal products (hides, leather, etc. ) Food products, not specified . Wool manufactures Textiles, mixed Printing and engraving Chinaware Silk manufactures : Earthen and stone ware Accident rate per 1,000 employees. Males. Fe- males. 21.6 lag 28.9 7.0 27.3 4.8 lao 11.6 18.9 ai 16.4 as 1&9 2.9 7.1 3.8 6.1 2.9 7.8 2.1 3.6 3.6 2a2 19.8 19.5 15.4 15l1 115 9.3 as 5.1 4.4 3.6 Thus accidents are shown to be most frequent in the machinery and iron and steel industries, being, respectively, 140.2 and 136.6 per 1,000 employees. In the cotton-goods industry, which is the most important in Russia, the rate is 24.1 accidents per 1,000, and in the otlier branches of textile industry much lower. The differences in the frequency of accidents in the various branches of the textile industries may be explained by the larger size of the cotton mills where machinery and mechanical power are used extensively, while in the woolen and silk industries hand looms are still the rule. Thus in 1906 the average number of employees per establishment in the cotton industry was 614, in the woolen industry 139, and in the silk industry 129. In the table following the accidents and accident rates are shown by industries and sex for the years 1904 to 1906. bn 2160 REPORT OF THE COMMISSIONER OF LABOR. NUMBER OF EMPLOYEES, NUMBER OF ACCIDENTS \ND ACCIDFNTq y^vji i ^^ Industry and year. Cotton manufactures: 19,)4 1305 1906 Wool manufactures: 1904 1905 ::: 1900 Silk manufactures: 1904 1905 190G Flax, hemp, and jute manufactures: 19i)4 1905 ;. 1906 Textile industries, not specified; 1904 1905 1906 '_ Paper, parchment, and wall paper: 1904 1905 1906 ;;; Printing and engrav- ing: 1904 1905 1906 ;; Paper and printing, not specified: 1904 1905 1906 ,,"[ Total paper and m-int- 1904 1905 1906 ;;. Lumber sawing: 1904 1905 1906 ;. Wood working, not specified: 1904 1905 1906 ; Total wood manufac- tures: 1904 1905 1906 ].'.'; Iron and steel: 1904 1905 1906 ;;;; Machinery: 1904 1905 1906 Mall's. Employ- ees. 213,613 209.682 220, 175 92.722 88,281 87,988 12,590 10, 401 9,623 39, 470 45.104 44,928 12,605 11.705 11,785 18.729 18. 419 18,753 31.217 30.501 30.978 8,548 7.763 8,994 58,494 56.683 68,725 50.480 49,487 49, 732 19.948 19,036 19. 178 70.428 68,523 68,910 76.357 74.824 71,402 140.549 146, 697 134, 109 Accidents. Num- ber. 4.567 5.003 7,325r 940 l.rXM 1,442 57 60 75 659 887 1,025 123 135 199 539 569 512 219 187 221 354 412 375 1,112 1,1X8 1,108 1.779 1.732 1,901 574 607 619 2,353 2. .339 2,520 9. .317 9.671 10,227 15.321 18,807 18,923 Per 1,000 em- ploy- ees. 21.4 23.9 33.3 10.1 11.4 16.4 4.5 5.8 7.8 16.7 19.7 22.8 9.8 11.5 16.9 28.8 32.0 27.3 7.0 6.1 7.1 41.4 53.1 41.7 19.0 21.0 18.9 3.5.2 35.0 38.2 28.8 31.9 32.3 33.4 34.1 36.6 122.0 129.2 143.2 109.0 128.2 141.1 Females. Em- ploy, ees. 201 . 720 206.780 220,017 51,952 50,876 51,434 16,913 14.288 14,035 37,455 42,341 44,586 15. 152 13.850 14,044 10. 143 9.587 9,955 3,048 3,310 3,453 6,546 6,326 7,180 19. 737 19,223 20,588 1,425 1,470 1.392 6,682 6,511 7,245 8,107 7.981 8,637 3,989 4.136 4,526 1,132 1,098 983 Accidents. Num- ber. 2.041 2,107 3,284 289 312 436 18 23 30 434 521 891 36 43 41 66 47 48 21 32 13 42 42 50 129 121 111 23 24 69 208 204 307 231 228 376 132 143 145 12 44 19 Per 1,000 em- ploy- ees. 10.1 10.2 14.9 5.6 6.1 8.5 1.1 1.6 2.1 11.6 12.3 20.0 2.3 3.1 2.9 6.5 4.9 4.8 6.9 9.7 3.8 6.4 6.6 7.0 6. 6. 6. 16. 16. 49. 31.1 31.3 42.4 28.5 28.6 43.5 33.1 34.6 32.0 10.6 40.1 19.3 Total. Employ- ees. 415.333 416. 462 440, 192 144,674 139.157 139, 422 29,503 24,689 23,658 76, 925 87,445 89,514 27.757 25,555 25,829 28.872 28,006 28,708 34,265 33,811 34,431 15,094 14,089 16, 174 78,231 75.906 79,313 51,905 50,957 51, 124 26,630 25,547 26,423 78,535 76,504 77,547 80.346 78,960 75,928 141,681 147,795 135.092 Accidents. Num- ber. 6,608 7,110 10,606 1,229 1,316 1,878 75 83 105 1,093 1,408 1,916 158 178 240 605 636 560 240 219 234 396 454 425 1 241 1 .309 1,219 1 802 1 756 1,970 782 811 926 2,584 2,5(37 2,896 9.449 9.814 10,372 15.333 18. 851 18,942 Per 1,000 em- ploy- 6€S. 15.9 17.1 24.1 8.5 9.5 13.5 2.5 3.4 4.4 14.2 16.1 21.4 5.7 7.0 9.3 21.0 22.7 19.5 7.0 6.5 6.8 26.2 32.2 26.3 15.9 17.2 15.4 34.7 34.5 38.5 29.4 31.7 35.0 32. 33. 37. 117. 124. 136.6 108.2 127.5 140.2 CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2161 NUMBER OF EMPLOYEES, NUMBER OF ACCIDENTS, AND ACCIDENTS PER 1000 EMPLOYEES IN MANUFACTURING ESTABLISHMENTS, BY INDUSTRIES AND SEX 1904 TO 1900-Continued. " ' Industry and year. Metal working, not specified: 1904 1905 1906 Total metals, machin- ery and implements: 1904 iyu<) ............... Glass manufactures: 1904 1905 1906 China ware: 1904 1905 1906 Earthenware: 1904 1905 1906 Mineral products, not specified: 1904 1905 1906 Total stone, clay, chin», and glass ware: 1904 1905 1906 Animal products (hides, leather, ete.): 1904 1905 1906 Flour milling: 1904 1905 1906 Sugar and sugar refin- ing: 1904 1905 1906 Food products, not specified: ,1 •'04 ............... 1906 Total food products: 1904 1905 1900 Chemicals: 1904 1905 1906 Mineral oils: 1904 1905 .1906 Explosives: 1904 1905 1906 Males. Employ- ees. 39,359 39, 125 39,683 256,205 260, f>46 245, 194 36,817 33, 261 33,311 13,740 13.501 13,040 55,946 51.503 44,114 13,888 12.945 11.764 120.391 111.270 102,219 41.280 42.665 40,172 33,873 a3. 169 34.700 121,386 126. 839 132, 166 76,269 70, 147 70.048 231,528 230, 155 236,914 13,054 10,483 11,847 4,625 4,241 3,511 1,367 1,444 1,614 Accidents. Num- ber. 1,364 1,376 1,625 26.002 29.854 30,775 924 892 921 53 47 79 145 134 158 534 674 817 Per 1,000 em- ploy- ees. 34.7 35.2 40.9 101.5 114.5 126.5 25.1 26.8 27.6 3.9 3.5 6.1 38.5 44.3 69.5 1,656 1,647 1,975 13.8 14.8 19.3 456 52? 641 11.0 12.2 16.0 579 585 728 17.1 17.6 21.0 2,155 2.259 2,851 17.8 17.8 21.6 1.133 1.240 1,324 14.9 17.7 18.9 3.867 4,084 4,903 16.7 17.7 20.7 467 519 572 35.8 49.5 48.3 218 160 181 47.1 37.7 61.6 73 94 81 53.4 65.1 50.2 Females. Em- ploy- ees. 5.796 0,604 6,765 10,916 11,838 12,274 6,945 5,850 5,928 5,503 6,3.36 5,946 6.605 7.435 6,408 1,099 1,125 1,381 20,152 19. 746 19,663 5.228 5.720 6,442 487 437 529 15.957 17,661 19,778 36.280 36.735 37.971 52,724 64.833 58,278 1,941 250 335 12 36 13 430 620 484 Accidents. Num- ber. 95 115 161 239 302 325 78 86 92 12 12 17 17 25 23 25 23 31 132 146 163 24 25 63 3 "'2' 105 154 215 187 269 308 295 423 625 2 7 4 1 4 8 Per 1,000 em- ploy- ees. 16.4 17.4 23.8 2L9 25.5 26.5 1L2 14.7 15.5 2.2 2.2 2.9 2.6 3.4 3.6 22.7 20.4 22.4 6.6 7.4 8.3 4.6 4.4 1L6 6.2 "'3.'8 6.6 8.7 10.9 9.0 1.0 27.0 1L9 2.3 7.7 16.6 Total. Employ- ees. 45,154 45,729 46.448 Accidents. Num- ber. 1.459 1.491 1,786 267,181 26.241 272,484 ' 30.156 257,468 I 31,100 43,762 39.111 39, 239 19,243 18.897 18,986 62.551 58.938 60,522 14,987 14.070 13,135 140,543 131,016 121,882 46.508 48.385 45.614 34.360 33.606 35,229 137,343 144.500 161,944 112.549 106,882 108,019 284,252 284,988 295,192 14.995 10. 742 12,182 4,637 4.277 3,524 1,803 1.964 2,098 1.002 978 1,013 65 59 96 162 159 181 559 597 848 1,788 1.793 2,138 480 547 704 582 585 730 2,260 2,413 3,066 1.320 1.509 1,632 4.162 4.507 6,428 460 526 W6 218 160 181 74 96 Per 1,000 em- ploy- CS6S* 32.3 32.6 38.5 98.2 110.7 120.8 22.9 25.0 25.8 3.4 3.1 5.1 2.6 2.7 3.6 37.8 42.4 64.6 12.7 13.7 17.5 10.3 11.3 15.4 16.9 17.4 20.7 16.5 16.7 2a2 n.7 14.1 15.1 14.6 15.8 18.4 31.3 49.0 47.3 47.0 37.4 51.4 41.0 49.9 42.4 2162 BEPOBT OF THE COMMISSIONER OF LABOR. 1904 TO 1906-Concludeci. i^t^l ABLISHMENTS, BY INDUSTRIES AND SEX. Industry and year. Males. Females. Chemical industry, not specified: 1904 1905 1906 [[] Total chemical prodl' ucts: 1904 1905 1900 .'.■;;;; All other industries: 1904 1905 1906 !.'.'!.'; All industries: 1904 1905 1906 Employ- ees. Accidents. Num- ber. 23.001 25,080 24,353 42,047 41,248 41,325 2.169 3,140 3,382 Accidents. Per 1,000 em- ploy- ees. 1,193,602 1,179,503 1,171,340 602 632 703 1,360 1,405 1,537 77 138 242 43.229 48, 266 53,764 Em- ploy- ees. Num- ber. 26.2 25.2 28.9 32.3 34.1 37.2 35.5 43.9 71.6 36.2 40.9 45.9 15.808 16, 143 17,355 18, 197 16,958 18, 187 102 281 460 458,355 464. 715 487, 645 106 127 121 109 138 133 Per 1,000 em- ploy- ees. Total. Employ- ees. 6.7 7.9 7.0 6.0 8.1 7.3 Accidents. 3.976 4,:«9 6.378 8.7 9.4 13.1 38,809 41,223 41,708 60,244 58. 2lXi 59, 512 2,271 3,421 3,842 1,651,9.')7 1,644,218 1, 658, 985 Num- ber. Per 1,000 em- ploy- ees. 708 759 824 1,469 1.543 1,670 77 138 242 47,206 52. 6t.5 60,142 18.2 18.4 19.8 24.4 26.5 28.1 aio 40.3 63.0 28 6 32 36.3 year. 1904 to 1906 are shown by industries and age groups. GROUPS, 1904 TO 1906. ^ESTABLISHMENTS, BY INDUSTRIES ANJ) AGB Industry and year. Adults Em- ployees. Cotton manufactures: 1904 1905 1906 .".'.".'.'.""■ Wool manufactures: 1904 1905 1906 .'."."; Silk manufactures: 1904 1905. ..•.., 1906 '."'.'.'.'.." Flax, hemp, and jute manufactures: 1904 1905 1906 ;;;;; Textile industries, not specified: 1904 1905 1906 ! 368,341 369, 857 394,098 127, 182 123,225 122, 879 25,352 21,856 21,001 65,944 75, 142 76,268 23,567 22,056 22,337 Children. Accidents. Per Num- 1,000 ber. em- ployees. 112 17.2 109 16.8 151 24.6 8 3.7 13 8.0 13 8.0 CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2163 NUMBER OF EMPLOYEES, NUMBER OF ACCIDENTS, AND ACCIDENTS PER 1000 EMPLOYEES IN MANUFACTURING ESTABLISHMENTS, BY INDUSTRIES AND AGE GROUPS, 1904 TO 1900— Continued. Industry and year. Pai)er, parchment, and wall paper: 1904 1905 1906 Printing and engraving: 1904 ... 1905 1906 Pai>er and printing, not specified: 1904 1905 1906 Total paper and printing: 1904 1905 1906 Lumber sawing: 1904 1905 1906 Woodworking, not speci- fied: 1904 1905 1906 Total wood manufactures: 1904 1905 1906 Iron and steel: 1904 1905 1906 Machinery: 1904 1905 1906 Metal working, not speci- fied: 1904 1905 1906 Total metals, machinery, and implements: 1904 1905. 1906 Glass manufactures: 1904 1905 [ 1906 China ware: 1904 1905 .' 1906 Earthenware: 1904 1905 1906 Mineral products, not specified: 1904 1905 ; 1906 Total stone, clay, china, and glass ware: 1904 1905 1906 Adults. Em- ployees. 25,804 24,801 25,610 26,650 26,339 27,130 11,714 11,263 13,020 64,168 62,4a3 65,760 49,534 48, 712 48,610 23,981 22,842 23,505 73,515 71,554 72,115 70,327 71,746 68,805 129,801 135,554 124, 620 39.758 39,309 40,257 239.886 246.609 233,682 30,668 27.338 27,823 16, 131 16.369 16,077 58,287 55,403 47,380 14,088 13, 521 12,450 119, 174 112,631 103,730 Accidents. Num- ber. 566 587 521 177 163 185 376 430 404 1,119 1,180 1,110 1,745 1,699 1,884 702 762 853 2,447 2.461 2,737 8,905 9,301 10,024 14.585 17.979 18, 245 1,343 1,400 1,675 24,833 28,680 29,944 807 766 802 62 56 92 147 143 166 538 586 832 1,554 1,551 1,892 Youths. Per 1,000 em- ployees. 21.9 23.7 20.3 6.6 6.2 6.8 32. 38. 3L0 17. 18. 16.9 35.2 34.9 38.8 29.3 35.4 36.3 33.3 34.4 38.0 126.6 129.6 145.7 112.4 132.6 146.4 33.8 35.6 4L6 103.5 116.3 128.1 26.3 28.0 28.8 3.8 3.4 5.7 2.5 2.6 3.5 38.2 43.3 66.8 13.0 13.8 18.2 Em- ployees. 2.712 2,799 2,708 6,136 6,005 6,806 2,629 2,200 2,579 11,477 11.004 11,093 2.269 2,141 2,350 2,299 2,379 2,606 4,568 4,520 4,956 9.674 6.752 6,564 11,617 12. 0.33 10,306 4.975 5.991 6.788 26.266 24.776 22,658 7.577 6.752 6,572 2.256 1,783 2,189 3.703 3,064 2,801 863 529 665 14,399 12, 132 12,227 Accidents. Num- ber. 38 47 37 51 43 35 12 23 21 101 113 93 52 53 78 67 41 56 119 94 134 526 550 336 729 860 686 111 91 108 1,366 1,451 1,130 115 160 132 1 2 4 11 16 13 21 11 15 148 149 164 Per 1,000 em- ployees. 14.0 16.8 13.7 8.3 7.2 6.0 4.6 10.5 8.1 8.8 10.3 8.4 22.9 24.8 33.2 29.1 17.2 2L5 26.1 20.8 27.0 64.4 74.1 51.2 62.8 71.5 66.6 22.3 15.2 18.7 62.0 68.6 49.9 15.2 17.8 20.1 .4 LI L8 3.0 6.2 4.6 24.3 20.8 22.6 10.3 12.3 13.4 Children. Em- ployees. 356 406 390 1,479 1.467 1,496 751 626 575 2,586 2,499 2,460 102 104 164 350 326 312 452 430 476 345 462 559 263 208 166 421 429 403 1,029 1.099 1,128 5,517 5.017 4,844 856 745 720 561 471 341 36 20 20 6,970 6.253 6,925 Accidents. Num- ber. Per 1,(J00 em- ployees. 1 2 2 2.8 4.9 5.1 12 13 14 8.1 8.9 9.4 8 1 10.7 L6 21 16 16 8.1 6.4 6.5 5 4 8 49.0 38.5 4S.8 13 8 17 37.1 24-5 54 5 18 12 26 39.8 27.9 52.5 18 13 12 52.2 28.1 2L5 19 12 11 72.2 57.7 66.3 5 1L9 3 7.4 42 25 26 40.8 22.7 23.1 80 92 79 14.5 ia3 16.3 2 1 2.3 L3 4 7.0 2 5.9 i' ""56.0 86 93 82 12.3 14.9 13.8 2164 EEPOET OF THE. COMMISSIONEK OF LABOR. NUMBER OF EMPT.OVVtpq xtttw^^^ EMPLOYEES l" ^^.N^^KAVumNO rs^Lu'^^^JI- ^'^'^ ACCIDENTS PER , «« GROUPS, 1904 TO 190fr-C„ncluded "ESTABLISHMENTS, BY INDU.STEIES AND AOE Industry and year Animal products (hides, leather, etc.): 1904 1905 190G i'lour niillinc: 1904 1905 190o _ Sugar and sugar refinine- 1904 ^' 1905 1906, Food products, not spcci fied : 1904 1905 1900 Total food products: 1904 1905 190G... Chemicals: 1904 1905 1906 Mineral oils: 1904 1905 1900... Explosives 1904 1905 1900. Chemical industry, " not specified 1904 1905 1906.. Total chemical products": 1905 1906 All other industries 1904 1905 1906 All industries: 1904 1905.. 1906 Children. Accidents. Em- ployees. Num- ber. Per 1,000 em- ployifes. 261 304 223 1 2 3.8 9.8 60 6 307.7 222,2 24.7 48.1 72.6 .6 6 1 16.8 « Entered &s found In the original report. specified eaut ^7:;^^ 1^ sv^r Lr^r ^T' *^- r are separated into two main classes- Thol ,'''""«• , A^' accKlents CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2165 42.61 per cent in 1902, 41.91 percent in 1903, 38.05 per cent in 1904, and 37.8 per cent in 1906. This proportionate decline is probably due to a better recording of minor accidents, while those due to machinery or dangerous substances are usually of the graver kind. The most frequent cause of accidents is found in shop machinery operated by mechanical power. In 1906 this claimed 27.19 per cent of all industrial accidents; following this were accidents caused by loading and unloading, 17.11 per cent; hand implements, 15.07 per cent; collapse of buildings and falling weights, 7.70 per cent; and dangerous substances, 5.04 per cent. Falls claimed only 3.38 per cent, and elevators 2.03 per cent. The number of accidents due to power-generating engines, belts, and steam boilers are comparatively few, all these three classes claiming only 2.91 per cent. The comparative frequency of accidents due to any one cause differs considerably in various branches of industry. Thus, in the textile industries machines with mechanical power are responsible for from one-half to two-thirds of all accidents, while in metal industry only about one-fifth, and in that of mineral products about one-sixth are due to this cause. In these last two branches a great many accidents are due to loading and unloading heavy materials; this is also true of the woodworking industry, food products (mainly sugar industry), and chemical industry (oil refining). Accidents from dangerous sub- stances are met with most frequently in the chemical industry (manu- fa<;ture of explosives) and m animal products (hides, leather, etc.). Hand implements are found to be most dangerous in the metal works and in the chemical industry. 2166 BEPOET OF THE COMMISSIONER OF LABOB. Mar- ginal num- ber NUMBER OF ACCIDENTS DUE TO EACH CAUSE, IN MAKU [Source: Minlsterstvo Torgovli i Promyshlennostl. OtUiel promysh 1 2 3 4 5 6 7 8 9 10 11 12 13 Industry. Accidents caused by machinery and dancerous substances. Po\^er- generat- inji ma- chines. Belts, etc. 1901. Machin- ery with mechan- ical power Machin- ery without mechan- ical power. Cotton manufiactures Wool manufactures Silk manufactures Flax, hemp, and jute maiiuf^VuresV Textiles, not specified. Paper, and printing. Wood manufactures.. Metals machinery, and 'iinpliii'eiiYs Mmeral products.. Animal products (hidesVleather; etco' Food products ^ Chemical products. All other industries Eleva tors, der- ricks, etc. Steam boilern and steam fittings. Total. 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13 1903. Cotton manufactures Wool manufactures Silk manufactures Flax, hemp, and jute nmiiufectures Textiles, not specified Paper and printing. . . Wood manufactures Metals, machinery, and jmpiem^nts Mineral products.. Animal products (hides, leather," etc:).' Food products ^ Chemical products. All other industries. Total. 1903. 1 2 3 4 5 6 7 8 9 10 11 12 13 Cotton manufactures Wool manufactures Silk manufactures \\ Flax, hemp, and jute manufactures' Textiles, not specified. Paper and printing .".' Wood manufactures Metals machinery, and impienients Mineral products.. Animal products (hides, leather," etc!) J'ood products Chemical products ] All other industries Total. 1904. Cotton manufactures Wool manufactures... Silk manufactures '." .* Flax, hemp, and jute manufactures Textiles not specified . Paper and printing \\\ Paper, parchment 'and wairpapef Pnntmg and engraving. . ysiJ^A^^ ^"/' printing, not sp^ifiedii Wood manufactures Lumber sawing. Woodworking, not "specilfied." '. Metals, machinery, and implements 3 749 318 50 47 14 4 1 3 3 4 1 19 26 li 16 4 5 4 5 56 5 53 4 3 1 795 43 CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 2167 FACTURING ESTABLISHMENTS, BY INDUSTRIES, 1901 TO 1906. lennosti. Statlstika neschastnykh sluchaev s rabochimi, 1901-1906.] Accidents caused bv ma- chiner V and danger- t)stances. Accidents from other causes. oussu Mar- Col- Run Grand ginal Danger- ous sul>- stances. Explo- sives. Total. lapse of build- ings and falling Falls. Load- ing, im- loading, etc. Hand imple- ments. over by wag- ons, etc. Rail- road acci- dents. All other causes. Total. total. num- ber. objects. 142 1 2,960 200 189 409 216 52 14 418 1,498 4,458 1 31 750 27 46 51 37 8 2 32 203 953' 2 2 11 22 458 1 27 2 50 3 55 1 38 1 56 8 244 30 702 3 14 4 4 2 21 49 536 1 65 3 41 2 87 2 45 8 320 57 856 5 57 14 19 6 12 832 146 86 223 84 14 29 29 611 1.443 7 806 10 4,306 1,038 493 2,354 2,533 115 276 596 7,405 11,711 8 47 3 230 98 58 89 59 20 43 56 423 653 • 9 25 120 9 25 35 25 5 2 41 142 262 10 ,187 1,031 365 244 431 174 30 226 243 1,713 2,744 11 178 1 375 61 63 129 91 11 34 66 455 830 12 9 25 5 4 2 6 1 2 20 45 13 1,473 15 11,694 2,033 1,304 3,870 3,321 283 650 1,587 13,050 24,744 • 183 3,017 262 190 577 314 104 10 890 2.347 5,364 1 27 730 25 45 86 37 8 3 65 269 999 2 1 6 37 372 3 22 2 15 1 28 6 79 12 200 59 572 3 41 10 5 4 3 80 7 4 12 8 2 16 49 129 5 24 520 63 27 148 69 15 2 61 385 905 6 17 780 98 58 305 94 38 9 99 701 1,481 7 579 i2 3,779 861 310 2,379 2,495 256 78 1,260 7,639 11.418 8 25 2 181 75 49 66 57 58 10 88 403 584 9 30 111 12 21 30 20 5 1 42 131 242 10 256 2 976 481 164 501 198 114 161 366 1,985 2,961 11 182 10 394 94 51 149 161 44 8 153 660 1,054 12 11 1 36 3 6 5 20 1 4 14 53 89 13 1,344 27 11,013 2,006 942 4,287 3,514 655 291 3.139 14,834 25,847 240 1 3,400 254 202 850 422 101 6 1,250 3,085 6,485 1 35 786 43 48 75 50 3 1 67 287 1,073 2 3 55 2 2 1 5 1 14 25 80 3 4 337 27 12 42 31 6 2 86 206 543 4 6 34 i' 79 516 6 56 5 36 8 138 3 63 6 78 28 393 107 909 5 6 16 6 23 1,032 113 84 439 149 45 8 148 986 2,018 7 987 i5 4,934 1,333 402 2,964 3,-046 109 242 1,448 9,544 14,478 8 32 1 223 86 41 83 78 26 36 103 453 676 9 20 113 16 17 41 30 4 44 152 265 10 236 i 1,159 552 182 505 204 195 98 486 2,222 3,381 11 226 3 464 112 63 237 145 8 32 175 772 1,236 12 8 28 3 7 10 4 9 2 5 40 68 13 1,854 22 13,126 2,603 1,101 5,393 4,230 513 443 3,910 18,193 31,319 190 1 3,379 247 194 641 371 92 6 1,678 3,229 6,608 1 46 765 58 53 97 56 15 185 464 1.229 2 4 13 44 604 1 67 2 44 2 79 11 53 15 227 31 489 75 1.093 3 18 1 4 12 96 5 5 11 2 35 62 158 5 57 692 63 33 155 105 13 3 177 549 1.241 6 28 354 31 12 67 49 9 2 81 251 605 7 3 26 181 157 3 29 9 12 17 71 5 51 25 71 59 239 240 396 8 4 1 9 29 1,284 146 89 548 164 34 14 305 1.300 2,584 10 18 712 124 77 498 107 30 12 242 1.090 1.802 11 11 572 22 12 50 57 4 2 63 210 782 12 2,036 U 8,633 2,194 589 5,469 1 5,113 242 98 3,9G3 17,608 26,241 13 67725*'— VOL 2—11- 43 2168 Mar- ginal ber. EEPOBT OF THE COMMISSIONER OF LABOR. NUMBER OF ACC IDENTS DDE TO EACn CAUSE, IX MA NUPACTUEINO 1 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Industry. Accidents caused by machinery and dangerous substances. Power- Renerat- ing ma- chines. 1904— Concluded. Metals, machinery, and implements- Concluded. Iron and steel Machinery and implements." Metal working, not specified. Stone, clay, china, and gbss Glass manufactures China ware Earthenware .'."..'." Mineral products, not specified " * Animal products (hides, leather, etc!) iood products ' Flour milling ...".'. Sugar and sugar refining.'. . .' Food products, not specified ..*."' Chemical industry Chemicals !!!!!! Mineral oils .,', Explosives ''.''.. * n ^i^^'emical industry, notspecifiedV.' All other mdastries 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Total. 1905. 1 2 3 4 fi 6 Cotton manufactures Wool manufactures .' .' Silk manufactures .....'. Flax, hemp, and jute manufactures Textiles, not specified. . Paper and printing Paper, parchment, and waU paper Pnntmg and engraving itr ^^P®^ ^^ printing, not specified". .' Wood manufactures Lumber sawing - - ^ Y°**^^^'''^'''^S, not specified! '. Metals, machinery, and implements iron and steel Machinery and implements. Metal working, not specified... Jstone, clay, china, and gfess Glass manufactures China ware Earthenware .\\\ Mineral products, not specified Animal products (hides, leather, etc!) "" Food products ' Flour milling !!!!!!!! Sugar and sugar refining. Food products, not specified . .'.' Chemical industry Chemicals ! ! ! ! ! Mineral oils !!!!!!! Explosives ! ! ! ! ! Chemical industry, notspecifiedV.'.' All other mdustries Total. 1906. Cotton manufactures Wool manufactures Silk manufactures Flax, hemp, and jute manufactures". 1 e-\t,iie industries, not specified Pai)er and printing. . 23 39 19 7 3 1 1 2 2 59 14 28 17 15 6 1 237 40 14 5 1 15 5 5 5 11 11 13 40 6 9 1 1 1 6 1 51 18 20 13 8 4 2 223 Belts, etc. 96 99 14 A3 11 9 10 23 11 203 111 48 44 27 6 21 2 780 106 71 2 39 6 52 39 6 7 74 61 13 338 89 229 20 33 7 5 3 18 8 206 108 51 46 28 11 2 3 12 Machin ery with mechan- ical power 2,198 2,661 376 205 96 14 26 69 91 535 157 164 214 195 31 18 14 132 4 12,077 3,118 764 39 691 74 474 236 139 99 1,069 539 530 6,561 2,200 3,865 496 210 79 19 33 79 87 586 121 247 218 203 41 5 9 148 14 Machin- ery without mechan- ical power. Eleva- Steam tors.der-i ^^^^^P ricks, fnd pj.„ ' steam ^^- fittings. 52 161 7 96 1 6 65 2 4 16 50 962 13,890 4,423 936 46 916 98 474 109 71 40 12 2 1 4 5 9 39 4 7 28 13 4 415 13 3 1 13 6 26 3 14 9 10 2 8 170 76 66 28 5 3 2 10 58 1 22 35 9 1 244 530 12 33 2 3 8 20 9 111 23 59 29 16 5 11 1 1,109 51 U 17 4 39 24 5 10 34 30 4 782 243 525 14 23 1 1 6 15 12 108 25 56 27 16 6 2 1 7 4 324 25 11 25 4 37 I MOl 78 7 1 10 1 29 12 21 10 1 1 1 87 9 64 14 12 6 3 1 2 1 234 49 9 1 10 2 14 6 8 12 7 5 40 18 22 1 6 56 6 38 12 8 2 4 209 111 18 7 16 4 15 CHAPTER IX. WORKMEN'S INSURANCE IN RUSSIA. • ESTABLISHMENTS, BY INDUSTRIES, 1901 TO 1906— Continued, 2169 Accidents caused by machinery and dan- gerous substances. Accidents from other causes. Grand total. Danger- ous sub- stances. Explo- sives. Total. Col- lapse of build- ings and faUing objects. Falls. Load- ing, un- loading, etc. Hand Imple- ments. Run over by wag- ons, etc. Rail- road acci- dents. All other causes. Total. Mar- ginal num- ber. 953 971 112 207 172 5 6 24 36 218 10 120 88 217 120 35 IT 45 18 1 6 7 2 2* 7* 5 1 1 4 2 2* 3,636 4,398 599 520 286 33 55 146 159 1,259 333 491 435 499 180 57 35 227 29 647 1,406 141 121 59 5 16 41 18 321 23 235 63 121 32 23 7 59 5 164 384 41 75 40 5 9 21 26 214 39 114 61 78 29 17 4 28 8 2,224 3,060 185 318 138 9 31 140 45 958 44 634 280 272 88 27 12 145 13 1.260 3,633 220 238 143 5 7 83 50 250 39 129 82 183 56 50 10 67 9 121 113 8 49 3 2 8 36 5 75 4 61 10 31 7 43 51 4 18 1 e' 11 4 203 2 198 3 25 8 1.3^ 2,288 231 449 332 6 30 81 173 882 98 398 386 260 69 44 4 143 10 5.813 10.935 860 1,268 716 32 107 413 321 2,903 249 1.769 885 970 289 161 39 481 48 9.449 15,333 1,459 1,788 1,002 65 162 559 480 4,162 582 2,200 1,.320 1,469 469 218 74 708 77 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 1 23 3 1 16 30 31 32 3,083 28 17,963 3,367 1,410 8,608 6,607 579 372 8,299 29,242 47,205 228 3^ 1 18 8 64 37 6 21 18 13 5 2,390 1.030 1,230 130 214 199 1 1 13 47 243 3 161 79 265 149 27 21 68 16 3' i7* 7 3 7 1 i' 3' 2 i* 5 4' 1 1 3,605 914 44 793 101 684 350 175 159 1,228 663 565 10,357 3,676 5,980 701 496 287 27 48 134 171 1,310 284 595 431 542 214 42 38 248 45 234 53 2 70 6 87 43 8 36 160 131 29 2,220 595 1,551 74 140 39 7 23 71 42 402 24 275 103 135 29 10 16 80 12 161 45 1 42 5 41 23 ""is" 102 90 12 810 204 553 53 106 06 1 9 30 40 219 46 102 71 75 35 11 1 28 22 821 98 11 114 19 195 74 14 107 524 456 68 6,131 2,288 3,632 211 366 177 9 20 160 73 942 74 641 227 273 92 29 10 142 27 381 71 8 96 13 118 51 7 60 164 103 61 6, 172 1.280 4,tai 241 371 277 4 14 76 102 371 57 198 116 212 77 52 18 65 14 109 14 8 2 1,791 121 17 253 33 157 75 15 67 320 250 70 4.041 1,597 2,247 197 227 124 11 14 78 112 918 90 295 534 254 69 12 15 158 14 3,505 402 39 615 77 625 286 44 295 1.339 1,093 246 19.799 6.138 12,871 790 1.297 691 32 111 463 376 3,197 301 1.818 1,078 1,001 312 118 60 511 93 7,110 1,316 83 1,408 178 1,309 636 219 454 2,567 1,756 811 30,156 9.814 18,851 1,491 1,793 978 59 159 597 547 4,507 585 2,413 1,509 1.543 526 160 98 759 138 1 2 3 38 1 24 18 2 3' 2 4 5 6 7 8 6 62 56 6 319 139 170 10 72 5 1 7 7 "'ioe' 35 67 4 15 3 9 10 11 12 13 14 15 16 17 18 19 29 38 7 306 4 275 27 44 9 1 2 10 """39" 6 32 1 8 1 3 '20 21 22 23 24 25 26 27 28 29 30 34 3 4 1 31 32 3,551 30 20,290 3,563 1,669 9,592 8,093 999 191 8,255 32.365 52.655 279 40 4 22 5 43 i" 5,129 1,115 59 1,060 119 664 431 102 3 94 10 131 282 75 6 58 7 46 1.290 194 10 158 34 115 608 81 11 105 18 92 151 22 1 24 32 2 """is" 2,683 287 15 402 52 148 5,477 763 46 856 121 555 10.606 1,878 105 1.916 240 1,219 1 2 3 4 5 7 ie 6 2170 BEPOET OF THE COMMISSIONER OF LABOR. NUMBER OF ACCIDENTS DUE TO EACH CAUSE. IN MANUFACTURINQ Mar- ginal num- ber. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Industry. Accidents caused by machinery and dangerous substances. Power- generat- ing ma- chines. 1906— Concluded. Paper and printing— Concluded. Paper, pa-chment, and wall paper. Printing and engraving Paper and printing, not specified.! Wood manufactures Lumber sawing Woodworking, not speciJaed! '.'.'.'.'.'. Metals, machinery, and implements. . Iron and steel Machinery and implements .J Metal working, not specified ." ." Stone, clay, china, and glass Glass manufactures... China ware ...'..'.'.'..' Earthenware .'..'...". Mineral products, not specified . . Animal products (hides, leather, etc.). . Food products ^ Flour milUng !!!!!!!!!!!! Sugar and sugar refining ...!!!!!" Food products, not specified Chemical industry Chemicals Mineral oils E xplosi ves '.'.'.'.. Chemical industry, not specified .'.' .' All other industries Total, 6 8 2 8 7 1 68 18 35 15 13 5 2 1 5 2 39 19 12 8 13 6 3 4 6 233 Belts, etc. Machin- ery with mechan- ical power 34 6 10 66 m 8 352 95 230 27 28 5 3 7 13 9 284 118 97 60 26 12 1 12 1 1,141 221 134 119 1,271 567 704 6,934 2,401 4,014 519 210 85 10 34 81 131 714 166 304 244 186 43 9 9 125 16 16,355 Machin- ery without mechan- ical power. 12 21 4 6 1 5 176 73 61 52 5 2 3 10 46 3 7 35 11 3 1 1 6 1 356 Eleva- tors, der- ricks, etc. Steam boilers and steam fittings 14 13 3 12 2 50 10 40 8 10 2 858 69 248 28 594 33 16 8 27 5 2 2 1 1 5 19 2 7 10 123 88 16 22 74 48 34 18 25 14 12 8 2 2 9 6 2 8 1,218 376 CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2171 j ESTABLISHMENTS, BY INDUSTRIES, 1901 TO 1906— Concluded. Accidents caused by machinery and dan- Accidents from other causes. gerous substances. Mar- Col- Run over by wag- ons, etc Grand ginal Danger- ous sub- stances. Explo- sives. Total. lapse of build- ings and falling Falls. Load- ing, un- loading, etc. Hand imple- ments. Rail- read acci- dents. All other causes. Total. total. ninn- ber. objects. 15 315 41 26 45 43 5 10 75 246 660 7 5 177 11 7 16 6 1 16 57 234 8 23 172 79 13 54 43 2 5 57 253 425 9 18 1,429 217 154 614 177 41 41 323 1,467 2,896 10 12 693 184 143 487 124 36 38 265 1,277 1,970 11 6 736 33 11 27 63 5 3 68 190 926 12 1,811 14 10,282 2,702 829 5,886 6,688 220 234 4,259 20,818 31.100 13 719 9 3,591 797 191 2,352 1,601 129 80 1,731 6,781 10,372 14 948 2 5,907 1,758 571 3,289 4,911 86 148 2,272 13,035 18,942 15 144 3 784 147 67 245 276 5 6 266 1,002 1.786 16 166 2 455 179 119 463 450 58 61 363 1,683 2,138 17 130 1 232 66 49 200 274 3 2 197 781 1,013 18 3 20 11 10 14 12 3 5 21 76 96 19 4 51 26 10 24 10 17 16 27 130 181 20 28 1 152 86 50 225 154 35 28 118 696 848 21 63 232 49 42 116 129 6 6 126 472 704 22 303 1 1,597 513 293 1,184 439 376 37 989 3,831 5,428 23 8 361 47 64 98 65 7 1 97 379 730 24 204 746 351 143 803 251 353 24 395 2,320 3.066 25 91 1 500 115 86 283 123 16 12 497 1,132 1,632 26 254 5 633 177 96 283 213 25 66 278 1.137 1,670 27 143 1 228 39 29 98 63 12 20 87 348 576 28 26 41 7 22 32 59 2 1 17 140 181 29 12 4 29 11 2 16 19 4 8 60 89 30 73 235 120 42 137 72 ii 41 166 589 824 31 24 68 25 26 43 64 2 2 32 184 242 32 3,031 23 22, 732 4,633 2,032 10,290 9,066 932 501 9,95;j 37,410 60,142 2172 REPORT OF THE COMMISSIONER OF LABOR. PER CENT OF ACCIDENTS VUE TO EACH CAUSE, IN MANU {Source: Ministerstvo Torgovli i Promyshlennosti. Otdiel promysh Mar- ginal num- ber. 1 2 3 4 5 6 ^ i 8 o 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Industry. Accidents caused by machinery and dangerous sub- stances.' Power- generat- ing ma- chlnes. 1901. Cotton manufactures Wool manufactures Silk manufactures Flax, hemp, and jute manufactiires . . Textiles, not specified Paper and printing Wood manufactures Metals, machinery, and implements! '. Mineral products Animal products (hides, leather, etc.) Food products ' Chemical products !!!!!!!!! All other industries ......'''. Total. 1902. Cotton manufactures Wool manufactures \\\ Silk manufactures '..'..'.'.'.'..'. Flax, hemp, and jute maniifactures. . Textiles, not specified Paper and printing Wood manufactures Metals, machinery, and implements! '. Mineral products Animal products (hides, leather" etc!)\ Food products Chemical products \\\', All other industries ' Total. 1903. Cotton manufactures Wool manufactures '..'.'.'.. Silk manufactures ..'.'..'.... Flax, hemp, and jute manufactures. .' Textiles, not specified Paper and printing ] " ' Wood manufactures Metals, machinery, and implements! ! Mineral products Animal products (hides, leather,' etc!)! Food products Chemical products !!!!!! All other industries ! Total. 1904. Cotton manufactures Wool manufactures ! Silk manufactures !!!!!!!!! Flax, hemp, and jute manufactures.'!! Textiles, not specified Pai)er and printing !.!.!!!!!!! Paper, parchment, and wall paper Prmting and engraving Paper and printing, not specified. . w ood manufactures Lumber sawing ,_ Woodworking, not specified'!!!!!!! Metals, machinery, and implements. . Iron and steel 1.03 1.05 10.00 1.71 1.99 .83 .59 .77 1.53 2.08 1.20 2.22 1.00 .75 ,50 .70 1.55 1.99 .88 .45 .68 2.89 1.59 .85 12.36 ,86 .45 .84 2.50 .55 .93 1.54 .99 .31 .44 .75 2.22 .49 10.29 ,69 .42 .49 1.33 .37 1.29 1.82 .42 1.01 .58 .72 .26 .31 .24 Belts, etc. 2.22 6.61 6.66 4.27 5.26 6.78 4.57 1.10 4.90 3.44 6.09 1.93 Machin ery with mechan- ical power. Machin- ery without mechan- ical power 56.66 64.01 50.00 54.70 66.66 43.34 47.54 21.89 17.00 21.19 13.96 17.59 28.89 0.56 .95 .71 7.02 3.04 .83 1.25 1.22 .76 .69 .48 Kleva- lofs, der- ricks, etc. 1.37 .73 2.72 I 31.98 14 71 04 45 87 75 85 21 5.65 3.31 5.23 1.52 47.86 60.26 65. 31 58.92 50.39 40.44 43.68 21.20 16.61 22.32 11.95 13.47 8.99 1.05 .45 1.00 4.08 .52 1.55 3.54 .61 .90 .69 1.65 .64 .57 1.14 3.51 3.27 2.64 4.41 3.37 1.53 4,96 .96 4.45 Steam )>oilers and .iteam fittings. 1.35 2.10 1.14 1.75 .42 .57 .31 3.81 2.98 1.45 3. 36 2.48 29.76 .84 2.11 4.66 3.75 2.39 1.87 3.74 3.22 1.03 3.70 4.53 5.97 1.86 1.47 44.53 61.. 51 51.25 55.61 62.62 42.25 42.81 20.83 19.53 23.39 12.87 12.70 11.77 .33 ,28 .74 2.80 1.87 .94 .87 .74 1.89 .53 1.13 1.47 2.29 28.78 ,75 1.36 6.10 2.67 2.29 2.53 2.90 63 67 01 66 11 64 80 02 44.84 49.88 42.67 49.31 45. 57 39.00 38.68 60.00 26.77 42.92 32.30 67.39 19.95 23.27 .86 .70 2.04 .52 2.65 1.69 3.81 2.40 2.89 2.a3 .95 2.25 2.52 .43 .74 1.25 .74 2.31 1.49 3.70 2.81 2.64 2.43 1.05 2.39 1.14 ,78 ,20 .87 2.33 1.44 .81 .36 .34 .41 2.20 1.80 3.37 ,84 .86 1.96 6.25 1.29 1.21 .55 .42 .89 1.89 3.25 1.78 4.41 1.02 .15 .76 .71 .57 1.14 .33 1.33 l..'{3 4.00 1.46 .27 .37 4.43 1.53 4.35 2.10 4.29 1.S2 2.64 8.33 1.67 2.08 2.02 1.01 1.26 1.05 2.17 .19 .22 2.94 .22 2.94 ..-iS .13 .84 3.(»3 .16 1.15 2.58 .13 CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 2173 FACTURINO ESTABLISHMENTS, BY INDUSTRIES, 1901 TO 1906. lennosti. Statistika nesehastnykh sluchaev s rabochimi, 1901-1906.] Accidents caused by ma- chinery and dangerous substances. Accidents from other causes. Mar- ginal num- ber. Danger- ous sul>- stances. Explo- sives. Total. Collapse of build- ings and falling objects. Falls. Load- ing, un- load- ing, etc. Hand imple- ments. Run over by wag- ons, etc. RaU- road acci- dents. AU other causes. Total. 3.19 0.02 3.25 66.40 78.70 73.33 65.24 85.96 62. 62 57.66 36.77 35.22 45.80 37.57 45.18 55.56 4.48 2.83 3.33 3.85 1.76 6.43 10.12 8.86 15.01 3.44 13.30 7.35 ILll 4.23 4.83 6.67 7.12 5.26 4.79 5.96 4.21 8.88 9.54 8.89 7.59 8.89 9.17 5.35 10.00 7.84 3.51 10.16 15.45 20.10 13.63 13.36 15.71 15-54 4.45 4.84 3.88 3.33 5.41 L16 .84 0.31 .21 9.41 3.36 3.34 7.98 3.51 5.48 2.01 5.09 8.59 15.65 8.86 7.95 4.44 33.60 ' 21. 30 1 2 6.07 1.57 3.51 2.45 .83 6.88 7.20 9.54 6.81 21.45 20.00 26.67 1 3 L99 .57 34.76 14.04 37.38 42.34 63.23 64 78 54.20 62.43 54.82 44.44 4 5 6.66 5.82 21.63 9.03 9.54 6.34 10.96 13.33 L64 .97 .98 3.06 L91 LOO L33 2.22 2.01 2.36 6.58 .76 8.24 4.10 2.22 6 7 .80 .45 8 9 10 11 .12 12 13 1 5.95 .06 47.26 8.22 5.27 15.64 13.42 L14 2.63 6.42 52.74 3.41 2.70 2.04 1.05 2.33 2.65 1.15 5.07 4.28 12.40 8.f5 17.27 12.36 56.25 73.07 75.51 65.03 62.02 57. 46 62. 67 33.10 30.99 45.87 32.96 37.38 40.45 4.89 2.50 6.12 3.85 5.43 6.96 6.62 7.54 12.84 4.96 16.24 8.92 3.37 3.54 4.51 4.08 2.02 3.10 2.98 3.92 2.72 8.39 8.68 5.54 4.84 6.74 10.76 8.61 2.04 4.90 9.30 16.35 20.50 20.83 11.30 12.40 16.92 14.14 5.62 5.85 3.70 L94 .80 .19 .30 16. 58 43. 75 1 6.51 12.25 13.81 12.40 6.74 6.68 11.04 15.08 17.35 12.36 14.52 15.73 26.93 24.49 34.97 37.98 42.54 47.33 66.90 60.01 54.13 67.04 62.62 50.65 2 3 7.17 6.20 7.63 6.35 21.85 9.76 8.26 6.69 15.27 22.47 L75 L55 1.66 2.56 2.24 9.93 2.07 3.85 4.17 L12 .87 "!22 .61 .68 1.71 .41 6.44 .76 4.50 4 5 6 7 .10 .34 8 9 10 .07 .95 L12 11 12 13 5.20 .11 42.61 7.76 3.64 16.59 13.59 2.53 L13 12.15 57.39 3.70 3.26 3.75 .74 5.61 3.74 L14 6.82 4.73 7.55 6.98 18.29 11.77 .02 52.43 73.25 68.75 62.06 73.83 56.77 51. 14 34.08 32.99 42.64 34.28 37.54 4L18 3.92 4.01 2.50 4.97 5.61 6.16 5.60 9.21 12.72 6.04 16.33 9.06 4.41 3.11 4.48 2.50 2.21 4.68 3.96 4.16 2.78 0.06 6.41 5.38 5.10 10.29 13.11 6.99 L25 7.73 7.47 15.18 21.75 20.47 12.28 15.47 14.94 19.17 14.71 6.51 4. 66 0.25 5.71 2.80 6.93 7. .38 21.04 11.54 11.32 6.03 11.73 6.88 L56 .28 L25 Lll .09 .09 " '!37 19.27 6.24 17.50 16.84 5.61 8.58 7.34 10.00 15.23 16.61 14.37 14.16 7.35 47.57 26.75 31.25 37.94 36.17 43.23 48.86 65.92 67.01 57.36 65.72 62.46 58.82 1 2 3 4 5 .11 .66 2.23 .75 3.85 1.51 5.77 .65 13.24 1.76 .40 L67 5.33 "2.96' 2.59 2.94 6 7 .10 .15 8 9 10 .03 .24 11 12 13 1 5.92 .07 4L91 8.31 3.50 17.22 13.51 1.64 L42 12. 49 58. 09 2.88 3.74 5.34 L19 7.60 4.59 4.63 1.25 6.57 L12 LOO 1.41 7.76 10.09 .02 5L14 62.25 58.67 55.26 60.76 55.76 58.51 75. 42 39.65 . 49. 09 39. 51 73. 15 32.90 38.49 3.74 4.72 1.33 6.13 3.17 5.08 5.12 L25 7.32 5.65 6.88 2.81 8.35 6.85 2.93 4.31 2.67 4.03 3.17 2.66 L98 3.75 3.03 3.44 4.27 1.53 2.25 L73 9.70 7.89 2.67 7.23 6.% 12.49 1L08 7.08 17.93 21.21 27.64 6.39 20.85 23.54 5.61 4.56 14. 6<) 4.85 2.53 8.46 8.10 2.08 12.88 6.34 5.94 7.29 19.49 13.33 L39 L22 .09 25.40 15.05 20.00 20.76 22.15 14.26 13.39 10.42 17.93 1L81 13 43 8 06 14.87 14.33 48.86 37.75 41.33 44.74 39.24 44.24 41.49 24.58 60.35 50.31 60.49 26.85 67.10 6L51 1 3 L65 L26 L05 L49 .09 ■ ■"!24 .33 4 5 6 4 8 LOl L32 L66 .51 .92 L28 .25 .54 .67 .26 .37 1 .45 9 !65 .01 10 11 12 13 14 2174 REPORT OF THE COMMISSIONER OF LABOR. PER CENT OF ACCIDENTS DUE TO EACH CAUSE, IN MANUFACTURING Mar- ginal num- ber. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 1 2 3 4 5 fi 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Industry. Accidents caused l>y machinery and dangerous sub- stances. Power generat- ing ma- cMnes. 1904— Concluded. Metals, machinery, and implements- Concluded. Machinery and implements Metal working, not specified Stone, clay, china, and glass Glass manufactures .- , China ware Earthenware Mineral products, not specified Animal products (hides, leather, etc.) . , Food products Flour milling Sugar and sugar refining Food products, not specified Chemical industry Chemicals Mineral oils -. Explosives , Chemical industry, not specified All other industries Total, 1905. Cotton manufactures Wool manufactures Silk manufactures Flax, hemp, and jute manufactures Textiles, not specified Paper and printing Paper, parchment, and wall paper . Pnnting and engraving Paper and printing, not specified... Wood manufactures Lumber sawing Woodworking, not specified Metals, machinery, and implements Iron and steel Machinery and implements Metal working, not specified Stone, clay, china, and glass Glass manufactures China ware Earthenware Mineral products, not specified Animal products, (hides, leather, etc.). . Food products Flour milling Sugar and sugar refining Food products, not specified Chemical mdustry Chemicals Mineral oils Explosives Chemical indastry, not specified . . . All other industries Total. 1906, Cotton manufactures Wool manufactures Silk manufactures Flax, hemp, and jute manufactures. . . Textiles, not specified Paper and printing Paper, parchment, and wall paper. Prmting and engraving Paper and printing, not specified. . 0.25 1.30 .39 .30 1.54 .62 .36 .42 42 41 24 29 02 28 .46 1.13 3.89 ,50 .56 1.06 .36 .56 1.15 .79 2.28 1.10 .43 .63 .20 .13 .21 .40 .50 .10 1.69 .63 1.01 .18 1.13 3.08 .83 .m .52 .76 1.25 .26 6.52 .42 Belts, etc. .49 .37 .95 .31 .83 1.31 1.07 3.42 .47 0.65 .96 2.96 1.09 13.85 6.17 4.12 2.29 4.88 19.07 2.12 3.33 1.84 1.28 2.97 2.60 1.66 1.49 5.40 2.41 2.77 3.37 3.97 6.13 2.74 1.54 2.88 3.47 1.60 1.12 .91 1.22 1.34 1.84 .72 8.48 1.89 3.02 1.47 4.55 18.46 2.11 3.05 1.81 2.09 1.25 3.06 1.58 1.83 Machin- ery with mechan- ical power. 17.35 25.77 11.47 9.58 21.54 16.05 12.34 18.96 12.85 26.98 7.26 16.21 13.27 6.61 8.26 18.92 18.64 5.19 25.57 1.52 5.11 3.39 1.67 4.10 6.07 2.56 2.35 43.85 58.06 46.99 49.08 41.57 36.21 37.11 63.47 21.81 41.64 30.70 65.35 21.76 22.42 20.50 33.27 11.71 8.08 32.21 20.75 13.23 15.91 13.00 20.68 10.24 14.45 13.16 7.79 3.12 9.19 19.50 10.15 26.38 41.70 49.84 43.81 47.81 40.83 38.88 39.47 57.27 28.00 Machin- ery without mechan- ical power. 0.46 2.74 .67 .20 1.64 2.47 .89 1.87 .94 .69 .31 2.12 .89 .85 35 13 .88 .18 .23 1.21 .92 3.37 1.99 .47 6.40 1.98 .39 .11 .99 .56 .77 .35 1.88 .28 1.89 .34 1.83 1.29 .17 .91 2.32 .58 .19 Eleva- tors, der- ricks, eto. :i.46 1.44 1.S5 .20 4.61 4.94 158 1.87 2.67 3.95 2.61 2.20 1.09 1.07 1.65 1.30 2.35 .72 .84 1.21 '2.25 2.98 3.77 2.28 2. J. 1. 1.06 .62 ,23 ,59 1.30 1.67 3.04 2.14 8.97 .94 20 33 71 .49 2.59 2.48 2.78 .94 1.28 .10 l.(»9 3.77 2.61 2.19 2.40 4.28 2.32 1.79 1.04 1.14 1.25 1.02 .92 2.90 2.09 .74 .37 .96 .52 .42 2.38 2.50 1.28 2.8;} Steam boilers and steam fittings. 0.14 .69 .05 .18 .21 2.09 1.55 2.83 1.06 .82 1.28 1.38 1.35 .28 1.30 .50 .69 .08 1.20 .71 1.12 1.07 .94 1.76 .47 .40 .62 .13 .18 .12 ,06 .17 1. 10 1.24 1.03 1.58 .79 .52 .38 2.50 .26 .72 40 1.05 .96 6.67 .84 1.66 1.23 2.32 .47 CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. ESTABLISHMENTS, BY INDUSTRIES, 1901 TO 1906— Continued. 2175 Accidents caused by ma- chinery and dangerous substances. Danger- ous sub- stances. Explo- sives. 6.33 7.68 1L58 17.17 7.69 3.70 4.29 7.50 5.24 L72 5.31 6.67 14.77 25.59 16.05 22.98 0.36 23.38 6.53 3.21 2.96 1.20 1.27 4.50 4.88 5.82 2.74 4.63 .70 .74 .62 7.93 10.50 6.52 8.72 11.93 20.35 1.69 .63 2.17 8.58 5.39 .51 6.67 5.23 17.18 28.33 16.88 21.43 8.96 11.59 6.74 2.03 2.13 3.81 1.15 2.08 3.53 2.68 2.14 5.41 0.04 .48 .11 Accidents from other causes. Total. ,36 .16 .85 .05 .07 .27 .42 2.70 .06 .22 .05 .07 .02 .47 .06 .63 .07 .34 .07 .32 .08 .13 .73 .05 .42 28.68 41.06 29.08 28.54 50.77 33.95 26.12 33.12 30.25 57.22 2L73 32.95 33.97 38.38 20.15 47.30 32.06 37.66 Collapse of ])uild- ingsand falling objects. 38.05 50.70 69.45 63.01 66.32 56.74 52. 25 55.03 79.91 35.02 47.84 37.76 69.67 34.34 37.46 31.72 47.02 27.66 29.35 45.76 30.19 22.45 31 . 26 29.07 48.55 24.66 28.56 35.13 40.68 26.25 38.78 32.67 32.61 38.53 Falls. 9.16 9.67 6.77 6.89 7.69 9.87 7.33 3.75 7.71 3.96 10.40 4.77 8.23 6.82 10.55 9.46 8.33 6.49 7.13 3.29 4.03 2.41 4.97 3.37 6.65 6.76 3. 7. 6. 7. 3. ,65 ,93 .23 ,46 .58 7.36 6.06 8.23 4.96 7.81 3.99 11.86 14.47 11.89 7.68 8.92 4.10 11.40 6.83 8.75 5.51 6.25 16.32 10.54 8.70 6.77 2.51 2.81 4.19 3.99 7.69 5.66 3.76 6.42 5.14 6.70 5.04 4.62 6.31 6.18 7.79 5.40 3.96 10.39 Load- ing, un- load- ing, etc. 2.99 2.27 3.42 1.20 2.98 2.81 3.13 3. 02 3. 3. 5. 1. 2. 2. 2. 3. .96 ,97 13 ,48 .69 .08 ,93 .56 5.91 6.75 1.69 6.66 6.02 7.31 4.86 7.86 4.23 4.71 4.86 6.66 6.88 1.02 3.69 15.94 3.17 19.96 12.08 17.79 13.77 13.85 19.14 25.04 9.38 23.02 7.66 28.05 21.21 18.52 18.77 12.39 16.22 20.48 16.89 Hand imple- ments. 23.69 15.08 13.31 14.28 i.m 4.32 14.85 10.42 6.01 6.70 5.71 6.21 12.46 11.94 22.93 13.62 9.46 11. 69 Run over by wag- ons, etc. 0.74 .54 2.74 .30 3.08 4.94 6.44 L04 1.80 .69 2.70 .76 2.11 1.49 Rail- road acci- dents. 0.34 .27 1.01 .10 All other causes. Total. 18.24 48.36 4.07 59.37 5.43 66.19 2.86 55.32 4.91 49.58 4.17 54.47 10.75 56.25 7.32 75.64 4.70 40.47 18.59 2.66 3.99 5.71 03 92 77 64 99 06 11.55 7.29 13.25 8.10 10.68 14.90 11.64 6.39 23.57 20.41 25.97 8.38 20.33 23.31 19.27 14.15 20.41 18. 10 15.26 12. 58 26.80 13.35 20.91 12.65 26.56 15.04 17.69 17.49 18. 12 10.20 18.71 19.57 1.35 3.26 3.89 13.99 5.36 5.40 9.64 6.82 7.30 9.01 8.02 3.20 13.22 6.38 5.87 7.52 20.47 3.04 24.67 .16 20.69 28.32 6-78 8.81 12.73 18.65 8.23 9.74 8.21 1.23 1.63 1.06 3.70 L97 .83 4.88 .34 8.70 .23 1.70 L71 ! 1.36 2.20 14.92 17.89 25.11 33.13 9.23 18.52 14.49 36.04 21.19 16.84 17.61 29.25 17.70 14.71 20.19 5.40 20.20 12.99 Mar- ginal num- ber. ,79 17.58 2.70 .56 1.83 2.83 1.32 2.41 3.19 .74 1.06 1.42 .90 .67 4.02 .51 .11 .15 14 .23 .31 .22 .27 .39 .35 .36 .36 .27 .84 .31 7 13 69 74 18.22 12.16 10.33 9.52 8.25 14.17 9.43 8.03 6.84 12.71 14. W 32.50 18.37 8.56 10.15 18.24 6.37 1.28 6.79 .68 ,39 79 .85 ,71 .62 11. 1. 2. 1. 1.25 1.68 4.48 2.17 .86 1.03 1.33 .06 .52 .19 1.88 .53 .72 25.19 9.20 20.49 17.97 18.54 12.00 11.79 6.85 14.76 12.49 14.23 8.63 13.40 16.27 11.92 13.21 12.66 12.67 18.65 8.80 13.06 20.47 20.36 15.39 12.22 35.32 16.46 13.12 7.50 15.31 20.82 10. 14 15.37 6.73 4.32 10.48 5.48 7.50 7.65 7.68 2.56 10.12 1.89 1.42 1.17 .96 1.25 .58 .89 .47 .30 16.69 .30 .11 ,78 1.31 1.79 .43 L17 25.30 15.28 14.29 20.98 21.66 12.14 13.40 6.84 13.41 71.32 68.94 70.92 71.46 49.23 66.06 73.88 66.88 69.75 42.78 7a 27 67.05 66.03 61.62 73.85 62.70 07.94 02.34 61.96 49.30 30.55 46.99 43.68 43.26 47.75 44.97 20.09 64.98 62.16 62.24 30.33 65.66 62.54 68.28 52.98 72.34 70.65 64.24 69.81 77.55 68.74 70.93 61.46 75.34 71.44 64.87 59.32 73.75 61.22 67.33 67.39 61.47 51.64 40.63 43.81 44.68 50.42 45.53 43.75 •24.36 59.53 15 16 17 18 19 20 21 22 2i 2i 25 26 27 28 29 30 31 32 1 2 3 4 6 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 1 2 3 4 5 6 7 8 9 2176 REPORT OF THE COMMISSIONER OF LABOR. PER CENT OF ACCIDENTS DUE TO EACH CAUSE. IN MANUFACTURING Mar- ginal num- ber 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Industry. Accidents causei by machinery and dangerous sub- stances. Power ^nerat- mg ma- chines. Belts, etc. 1906— Concluded. Wood manufactures Lumber sawing - _ Woodworking, not specified! "."'. Metals, machinery, and implements. Iron and steel Machinery and implements .. .. ' Metal working, not specified ....'! Stone, clay, china, and glass Glass manufactures China ware Earthenware .[[ Mineral products, not specified * ." Animal products (hides, leather, etc.). Foodproducts Flour milling ..!".!!."! Sugar and sugar refining Food products, not specified .'.'."" Chemical mdustry Chemicals '.'.'.'.'.'.', Mineral oils Explosives Chemical industry, not specified.' ' All other industries Total. 0.28 .36 .11 .22 .17 .18 .84 .61 .49 2.08 .55 .59 .28 .72 2.60 .39 .49 .78 1.04 1.66 Machln ery with mechan- ical power .48 2.48 2.28 2.94 .86 1.13 .92 1. 1. 1. 22 .51 .31 .49 3.12 3.87 1.53 1.28 5.23 16.17 3.16 4.23 1.50 2.08 1.12 1.46 .41 ,39 1.90 43.89 28.78 76.02 22.29 23.15 21.19 29.06 9.83 8.39 10.42 18.79 9.55 18. 61 13.15 22.74 9.92 14.95 11.14 7.47 4.97 10.11 15.17 6. 01 27.19 Machin- ery without mechan- ical power. Eleva- tors, der- ricks, etc. 0.21 .05 .54 .57 .70 .27 2.91 .23 .20 .35 1.42 .83 .41 .23 2.15 .66 .52 .55 1.12 .73 .41 1 1.72 2.03 1.08 2.76 2.39 3.14 90 26 .20 1.04 2.76 2.24 .99 2.27 2.05 2.41 2.08 1.50 2.08 I. 10 2.25 1.09 .83 Steam boilers an stem fittings. 0.34 .41 .22 .22 .27 .17 .45 .23 .20 1.04 .59 2.03 .24 1.42 1.G2 3.01 1.57 1.10 .83 1.39 .73 3.31 ,02 Natuke of Injuries.— Wounds and fractures constitute the greater portion of industrial accidents (72.39 per cent in 1906) and the second largest group consists of traumatic injuries without lacera- tion (18.48 per cent), most of which are injuries of a lightiT nature. Ut wounds and fractures, the most important items are injuries to the Imgers, these constituting 33.36 per cent of all accidents, as against 14.01 per cent to the lower extremities. Injuries of the left-hand imgers claimed 16.96 per cent and those of the righ^hand fin-ers almost as many, 16.18 per cent, while injuries to fingers of both nands were rare. Considerable variations exist between the different industrial groups m regard to the nature of injuries. Burns and scalds are most frequent m the chemical industry, especially in the production CHAPTEB IX. — WORKMEN S INSUBANCE IN RUSSIA. 2177 ESTABLISHMENTS, BY INDUSTRIES, 1901 TO 1906— Concluded. Accidents caused by ma- chinery and dangerous substances. Accidents from other causes. Danger- ous sub- stances. Explo- sives. Total. Collapse of build- ings and falling objects. Falls. Load- ing, un- load- etc. Hand imple- ments. Run over by wag- ons, etc. RaU- road acci- dents. AU other causes. Total. Mar- ginal num> ber. 0.62 .61 .65 5.82 6.93 5.00 8.06 7.72 12.83 3.13 2.21 3.30 8.95 5.58 1.10 6.65 5.58 15.21 24.83 14.37 13.49 8.86 9.92 49.34 35.18 79.48 33.06 34.62 31.18 43.90 21.28 22.90 20.83 28.18 17.92 32.95 29.42 48.08 24.33 30.64 31.92 39.58 22.65 32.58 28.52 23.97 7.49 9.34 3.56 8.69 7.69 9.28 8.23 8.37 5.53 11.46 14.37 10.14 6.% 9.45 6.44 11.45 7.05 10.60 6.77 3.87 12.36 14.56 10.33 6.32 7.26 1.19 2.67 1.84 3.02 3.75 5.57 4.84 ' 10.42 5.52 5.90 5.97 5.40 8.77 4.67 5.27 5.69 5.04 12.16 2.25 5.10 10.74 17.75 24.72 2.92 18.93 22.68 17.36 13.72 21.66 19.74 14.58 13.26 26.53 16.48 21.81 13.42 26. 19 17.34 16.94 17.01 17.68 17.98 16.63 17.77 6.11 6.29 5.72 21.60 14.47 25.93 15.45 21.05 27.05 12.50 5.52 18.16 18.32 8.09 8.90 8.19 7.54 12.75 10.94 32.60 21.35 8.74 22.31 1.42 1.83 .54 .71 1.24 .45 .28 2.71 .30 3.13 9.39 4.13 .71 6.93 .96 11.51 .98 1.50 2.08 1.10 i.'33" .83 1.42 1.93 .32 .75 .77 .78 .34 2.39 .20 5.21 8.84 3.30 .71 .68 .14 .78 .73 3.95 3.47 .55 4.49 4.98 .83 11.15 13.45 6.27 13.69 16.69 12.00 14.33 16.97 19.44 21.87 14.92 13.92 17.90 18.22 13.29 12.88 30.45 16.65 15.11 9.39 8.99 20.14 13.22 50.66 64.82 20.52 66.94 65.38 68.82 56.10 78.72 77.10 79.17 71.82 82.08 67.05 70.58 51.92 75.67 69.36 68.08 60.42 77.35 67.42 71.48 76.03 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 23 29 30 31 32 0.05 .09 .01 .17 .09 .10 .12 .02 .06 .30 .17 4.49 5.04 .04 37.80 7.70 3.38 17.11 15.07 1.55 .83 16.56 62.20 of chemicals and explosives, in the manufacture of glass, and in the iron and steel industry; i. e., in those branches of industry in which incandescent materials are handled. The chemical industry presents especial danger of burns to eyes. Wounds and fractures of fingers are frequent in all industries, but are relatively highest in wood- working, not specified, constituting 78.2 per cent of all accidents in that industry in 1906. Traumatic injuries to eyes show the highest proportion in the machinery-building industry, due to flying particles of metal. Injuries to lower extremities are highest in the susrar refineries and earthenware establishments. In the two tables following the number and per cent of injuries of each class are shown by industries for the years 1901 to 1906. 2178 BEPOET OF THE COMMISSIONER OF LABOB. NUMBER OP INJURIES OP EACH SPECIPIED CLASS, IN MANU lS.ur«: Minfa ter.tvo TorgovU 1 Promyshlenno.... OMlel prom,^ 1901. Cotton manufactures Wool manufactures bilk manufactures... TPT^^IiS^^i ^"^ ^S^« mMufii;tii>^ i extiies, not specified . . Paper and printing. Wood manufactures Chemical industry All other industries 1903. Cotton manufactures Wool manufactures bilk manufactures Flax hemp, and jute manuf^tiires Textiles, not specified . ""'^^^^^ Paper and printing. Wood manufactures Chemical industry All other Industries 1903. Cotton manufactures Wool manufactures Silk manufactures S^^li^^^Pl ^°^ jute manuf^iurM Textiles, not specified Paper and printing. Wood manufactures Chemical industry. ' AU other industries. Total. 1904. Cotton manufactures. Wool manufactures. Silk manufactures Flax hemp, and jute manufkijtures" " ' " Textiles, not specified . "''^^'"res. . . . Paper and printing Paper, parchment, and wali paper" Pnnting and engraving ^ ^ w^/i^P^"" ^°,^ printing, not specified ' * Wood manufactures . .. i^^^^^ - . Lumber sawing. 226 125 91 22 26 9 3 7 1 11 6 2 2 5 22 23 4 16 22 2 969 234 364 30 15 5 13 14 2 184 184 25 77 68 42 6 5 1,580 734 Mat^^^^'^^J.^^^^' not sMcified ■ ' " Metals, machinery, and mplemente Iron and steel ^^"ciiis Machinery and inipieniente" Metal working, not specified! 196 20 3 16 11 35 19 5 11 18 11 7 2,065 1,073 891 101 lie 31 4 4 5 49 25 6 18 20 13 7 411 221 155 351 547 56 13 2j 3| 1 10 fi 1 4 6 5 1 564 2171 318 2»l 367 64 9 23 17 94 49 12 33 44 29 16 3,040 1,511 1,364 166 444 136 £3 13 6 2 26 9 4 3 42 22 79 47 661 904 as 20 12 I 191 61 50 32 6 1 1 22 1,519 196 8 270 27 142 61 19 59 613 440 73| 5,908 2,208 3,420 2801 1,631 .17« 44 6 52 10 39 17 »\ 14 121 105 16 1,006 297 652 67 1,261 31 132 15 3 36 5 30 15 1 14 40 33 7 1,930 402 1,398 130 26 3 18 4, CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2179 FACTURING ESTABLISHMENTS, BY INDUSTRIES, 1901 TO 1906. lermosti. Statistika neschastnykh sluchaev s rabochirai, 1901-1906.] Wounds, fractures, etc. As- lation by gases. Drown ing. AU oth- er in- iur- ies. Shoulder, arm, or wrist. Fingers. Lower extremi- ties. Tnmk. Internal injuries without external wounds (chest, abdomen, skull). TotAl. Grand totaL R'ht Left. Both. Right hand. Left hand. Both hands R'ht Left. Both. 344 83 2 64 3 67 101 580 59 19 218 45 3 238 85 4 61 1 55 100 646 53 21 202 40 4 18 1 12 3 3 28 1 14 6 3 1,034 248 5 139 20 203 285 1,785 96 34 370 124 9 847 212 "ise 15 193 313 1,960 75 42 326 116 8 13 2 i 3 16 25 2 6 2 297 35 "46 1 61 112 837 56 12 431 63 3 285 41 "37 2 53 103 761 53 16 365 32 2 2 3 3 3 17 8 1 25 6 81 14 9 17 37 176 28 7 114 11 20 5 1 4 8 27 86 8 4 59 22 1 3,584 794 26 570 45 729 1,220 8,406 520 196 2,350 617 33 1 4 ...... 2 7 3 i i 2 i 1 2 1 8 1 """3 "is 7 13 13 61 4,468 953 30 7US 67 856 1,443 11,711 663 262 2,744 830 46 1,588 1.500 308 64 2 38 6 63 64 510 45 17 181 49 6 89 4,352 4,263 70 1,9481,740 68 494 24518,990 17 9 121 24,744 310 98 i 7 73 86 487 33 27 191 41 2 8 3 i 6 3 1 7 1 1,090 261 19 115 27 202 277 1,775 88 34 424 127 10 986 241 12 108 34 189 374 1,827 65 39 366 132 11 18 1 1 2 3 3 26 3 6 4 335 33 2 22 4 42 89 695 44 15 411 53 6 283 41 4 3 64 12 1 16 4 15 33 160 23 7 136 21 4 19 12 3,890 820 40 427 97 716 1.130 7,647 410 169 2,404 674 62 2 i 26 " "io 1 5,364 999 49 572 27 6 41 64 685 39 6 429 47 10 3 4 21 1 ""'io 6 1 129 8 23 78 7 6 20 16 906 2 6 1 5 4 1 3 3 1 4 1 7 2 9 2 47 1 1,481 11,418 684 242 2,961 1,054 89 1,400 1,352 30 4,449 4,384 671,751 1,677 51 496 189 18,386 21 12 106 26,847 350 87 5 40 3 57 108 580 51 12 210 37 5 306 90 4 26 12 55 99 552 48 15 177 48 4 9 1 2 1 1 3 8 3 3 1 1,233 261 16 117 27 200 366 2,177 113 45 505 174 5 1,144 235 26 104 27 186 523 2,325 88 46 419 156 17 1 i 2 5 36 2 5 2 394 36 2 39 1 57 118 739 54 8 323 57 2 390 38 2 26 3 56 104 771 40 11 356 60 4 7 i 50 13 1 12 16 6 1 3 1 2S 81 5 4 35 18 4,502 834 65 406 82 703 1,528 9,036 500 162 2,372 657 42 36 6,485 1,073 80 10 543 107 1 8 20 2 2 8 2 20 47 160 19 7 79 16 4 1U« 900 3 1 2 1 23 3 19 6 71 3 2,018 14,478 676 ' "12 1 265 3.381 1,236 11 68 1,545 1,436 32 5,239 5.289 71 1,830 1.861 51 428 194 20,889 15 4 172* 31.319 363 106 4 56 10 102 49 35 18 142 108 34 1,172 427 673 72 310 88 6 59 10 89 52 12 25 119 84 35 1,154 366 708 80 9 2 5 4 2 2 23 9 12 2 1,258 314 16 229 27 303 148 72 83 445 301 144 3,964 1.502 2,221 241 1,211 256 18 199 34 272 125 61 86 754 339 415 4,389 1.495 2,631 263 14 77 31 41 6 464 45 3 59 5 58 31 8 19 158 136 22 1,415 476 886 63 422 49 2 63 8 63 29 2 32 139 129 10 1,430 489 873 68 8 4 44 20 56 21 4.674 968 58 793 112 1,001 489 208 304 2.022 1,328 694 17,199 5.694 10,504 l,00ll 48 1 6.608 1,229 7a 1 16 19 3 16 (^ 4 3 6 26 24 2 305 110 179 16 7 2 4 3 1 1.093 158 2 1 i 8 8 '"■io 14 25 1 22 13 4 5 62 58 4 269 73 187 9 1,241 605 240 396 1 1 4 4 2.5W 1.802 782 1 1 2 2 91 35 43 13 26,241 9,449 15,333 1,469 2180' REPORT OF THE COMMISSIONER OF LABOR. NUMBER OF INJURIES OF EACH SPECIFIED CLASS. IN MANUFACTURING Industry. 1904— Concluded. Stone, clay, china, and glass Glass manufactures China ware Earthenware ..'.'.'.'.'.'." Mineral products, not specified Animal products (hides, leather, etc, Food products Flour milling Sugar and sugar refining! ."'.'" Food products, not specified. Chemical industry Chemicals '. Mineral oils Explosives "[ Chemical industry, liot "specified^ All other industries ). Total. 1905. Cotton manufactures Wool manufactures .[,'. Silk manufactures Flax, hemp, and jute manufactures" " Textile industries, not specified Paper and printing Paper, parcliment, and wall paper' Printing and engraving. . . ITT ^^P^^ ^"'r^ printing, not specified .' .' Wood manufactures : . Lumber sawing Wood working, not specified .V ' " " Metals, machinery, and implements Iron and steel Machinery and implements Metal working, not specified. . . Stone, clay, china, and glass.. Glass manufactures ". China ware \\" Earthenware Mineral product.^, not specified Animal products (hides, leather, etc.)' ' Food products " Flour milling Sugar and sugar refining. Food products, not specified . Chemical mdustry Chemicals Mineral oib '.'.'.'.'.'.'. E xplosives '.'.'.'.'.'.'. Chemical industry, not 'specified! .' ! " All other industries Bums and scalds. One part of body, ex- cept eyes 188 164 3 2 19 23 204 8 141 55 112 67 19 11 25 8 Sev- eral parts of body, ex- cept eyes Eyeg. 2,899 252 24 2 20 9 49 28 5 16 18 12 6 249 144 022 83 173 161 1 41 21 4 8 8 9 128 14 66 48 64 29 16 5 14 6 Total Total. 11 25 188 7 135 46 105 52 12 9 32 3 888 95 21 3 12 5 32 18 2 12 17 11 61 491 256 197 38 41 30 22 15 7 11 23 3 11 9 62 42 8 3 9 4 Trau- matism without lacera tions. Wounds, fractures, etc. 251 200 7 10 34 43 355 25 218 112 238 128 43 19 48 18 776 3,117 2 9 23 151 9 104 38 97 36 14 8 39 12 53 13 2 5 1 12 10 4,563 400 60 7 37 15 93 56 7 30 39 25 14 729| 3,469 1,651 1,666 152 2 4 2 2 251 447 31 2r. h) 1906. Cotton manufactures Wool manufactures Silk manufactures !!!!!!!! Flax, hemn, and jute maniifactiires J extile industries, not specified Paper and printing Paper, parchment, and waii 'paper' Pnnting and engraving , Paper and printing, not specified! ! 301 35 8 29 9 34 15 3 16 1,000 1 6 12 32 6 21 (•I 83 61 C 9 7 3 240 210 1 3 26 60 371 21 260 90 285 149 32 26 78 18 977 5,094 169 38 7 15 8 22 10 3 9 109 11 1 12 1 11 5 26 579 84 16 56 18 67 30 6 11 216 53 7 27 129 56 805 118 461 226 251 61 41 10 139 15 Head, face (except eyea), and ne(;k. 9,926 1,479 100 17 218 14 116 64 25 27 509 418 91 5,648 1,850 3,577 221 217 45 3 27 142 67 765 156 479 130 195 67 30 4 94 19 9,364 2,516 304 22 319 38 85 43 17 31 Ono eye. 80 42 4 12 32 27 236 31 144 01 as 23 7 1 24 Both eyes. 2,061 Ml 45 6 91 & bH 32 3 23 134 IM 8 1,179 288 84( 45 7(» 29 3 10 34 34 203 22 118 03 61 24 5 4 28 17 39 9 1 3 36 8 71 17 37 17 67 21 26 8 13 4 2,380 101 28 50 4 28 11 1 16 49 47 2 2,318 499 1,704 115 47 22 2,2.^4 591 106 2 153 10 «•■ 37 13 35 36 39 13 24 2 1 1 4 1 21 Ifl » 103 1 1 20 1 52 31 GO 1 27 1 12 4 17 5 2,812 46 185 27 1 61 13 38 1 21 6 1 6 CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. ESTABLISHMENTS, BY INDUSTRIES, 1901 TO 190a-Continued. 2181 Wounds, fractures, t Jtc. As- lation by gases. Drown ing. All oth- er in- jur- im. Shoulder, arm, or wrist. FlngCTfi . Lower extremi- ties. Trunk. Internal injuries without external wounds (chest, abdomen, skull). TotAl. Grand total. R'ht 188 140 2 9 37 19 242 35 86 121 76 17 13 ' "46 2 Left. Both. Right hajQd. Left hand. Both hands R'ht Left. Both. 136 95 6 12 23 26 242 37 87 118 63 16 6 5 36 3 5 2 i 2 7 1 5 1 1 1 274 174 11 15 74 72 640 130 240 270 201 60 26 9 117 8 240 126 12 15 87 79 574 95 267 212 241 50 36 9 146 8 11 7 i 3 ""io 1 4 5 4 1 3 130 63 3 23 41 23 390 29 302 59 100 35 8 3 54 3 142 'I 20 46 23 422 22 341 59 85 26 6 6 3 1 i 1 2 14 1 11 2 3 2 i i 41 11 4 8 18 12 67 12 31 24 29 9 3 17 2 24 9 2 2 11 15 65 11 18 26 40 19 6 3 13 2 1,315 749 61 122 393 306 2,971 4'a 1.573 975| 967 272 134 45 616 44 1 5 1,788 1,002 65 1 2 3 75 22 13 4 5 12 8 162 559 4S0 6 2 3 1 1 3 1 1 1 4,162 6S2 2.2C0 1.320 1,469 469 218 74 1 4 708 77 2,482 2.3a5 56 7,751 8,275 128 2,853 2,852 86 583 682i32.430 81 7 271 47.205 423 148 381 112 10 4 1,365 341 21 1,256 291 14 249 41 276 57 100 682 276 406 4.911 1,505 3,109 297 260 143 11 24 82 111 658 97 271 290 256 63 28 12 153 20 26 6 5 1 3 i 2 4 3 1 92 30 55 7 2 2 ...... 2 12 "12 3 3 520 55 1 94 11 557 73 6 101 4 13 1 78 18 75 31 5.152 1.153 2 77 3 7.110 1,316 1 8 107 115 3> 59 17 1,152 5 149 25 1,098 15 514 4 187 6 397 23 2.012 16 1,309 7 703 471,20,982 142 6,293 30813,574 21 1.115 S3 5: 287 1 41 2; 273 2, 101 ' 77 95 4, 441 4 281 1 160 38 4,591 9 1,518 3 1 8 4 1 3 14 12 2 58 10 44 4 3 2 i "'is 3 10 2 8 1 7 1 28 3 32 23 1 8 74 64 10 480 134 328 18 45 19 3 5 18 17 91 8 52 31 30 11 1 3 15 5 1 1.408 18 101 eo 15 2t; 148 114 34 15 95 53 12 30 117 90 27 178 97| 99 48 45 4 11 45; 43 2 2 1..309 636 219 454 160 136 24 161 139 22 1 1 6 3 3 5i\ 20 33 3 2 2.5t)7 1,756 811 1,569 1,493 48«)i 454 1,8091,934 584! 621 1,1491,226 76 87 1 30.156 9,814 984 99 1G3 123 5 10 25 36 296 44 90 162 67 25 966 73 132 91 7 10 24 28 285 35 94 156 67 17 29 i 1 "is 2 7 4 3 1 2 1 2,802 271 286 144 14 23 105 90 703 113 260 330 236 53 20 17 146 19 1 18.851 1,491 138 63 4 17 54 25 458 23 336 99 103 28 6 13 163 78 8 22 65 41 451 19 351 81 111 28 10 11 62 9 17 1,334 723 55 127 1.793 978 69 2 ? 159 10 429 14 417 52, 3,341 9 396 22 1,663 21, 1.282 45! 1,051 24 306 597 "u 4 7 1 5 1 2 18 8 4 6 7 4 547 4.507 585 2.413 1.509 1,543 526 6 7 8! 4 29 39 9; 4 9S 68 579 100 160 1 98 1 5 3 1 759 13S 2,848 3,086 81 8,694 9,025 156 3,484 3,709 125 901 779 38,000 19 3 175 52.«i55 597 461 10 3 i 1,906 442 26 372 50 267 115 74 1,859 364 22 353 43 253 90 63 100 25 3 5 1 780 101 4 125 9 792 85 1 124 16 82 40 5 37 17 6 130 29 77 7.430 81 10.606 146 124 4 7 142 111 13 16 106 90 64 49 22 14 47 1,483 67 1,534 184 2 5 1.878 105 4 5 4 55 4 36 22 29 9 1 6 1.916 240 2 101 1 45 1 9 1' 47 16 1,064 7 484 3 211 & 369 1 2 1 2 1.219 660 234 20 27i i 7^ i 14 425 • I 2182 REPORT OF THE COMMISSIONER OF LABOR. NUMBER OF INJURIES IN EACH SPECIFIED CLASS, IN MANUFACTURING CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2183 ESTABLISHMENTS, BY INDUSTRIES, 1901 TO 1906-Concluded. Industry. Burns and scalds. 1906— Concluded. "Wood manufactures Lumber sawing '.'.'.'.'.'..' Wood working, not specinedV. ..." Metals, machinery, and implements. Iron and steel Machinery and implements. ... .. Metal working, not specified.. . Stone, clay, china, and glass G lass manufactures China ware ,][[ Earthenware Mineral products, not specified. .. Animal products (hides, leather, etc.) Food products Flour milling Sugar and sugar refining. . . .'.'.*." 1! Food products, not specified . . .V. Chemical industry Chemicals '.'.'.'.'.' Mineral oils E xplosi ves Chemical industry, not specified!. All other industries One part of body, ex- cept eyes. 15 9 6 021 045 875 101 156 125 1 Sev- eral parts of body, ex- cept eyes. Total. 30 38 214 12 159 43 104 55 11 5 33 17 2,981 18 13 5 508 289 179 40 38 14 4 4 16 19 160 17 100 43 84 36 8 9 31 7 Eyes 1 3 891 292 555 44 24 10 1,093 8 23 54 5 23 26 89 62 7 2 18 7 1,237 Total, Trau- matism without lacera- tions. Wounds, fractures, etc 37 23 14 3.420 i;626 1,009 185 218 155 5 4 54 80 428 34 282 112 277 153 26 16 82 31 5,311 476 443 33 5,823 2,065 3,503 255 248 58 7 23 160 109 942 184 607 151 185 52 49 2 82 47 11,114 Head, face (except eyes), and neck. One Both 130 113 17 1,332 364 922 56 68 24 7 5 32 27 200 34 149 77 67 29 29 10 eye. 59 47 12 2,712 527 2,(m 147 62 17 3 39 13 140 20 82 38 71 28 13 2 28 15 eyes. 2,822 3,397 56 17 37 2 2 2 1 12 9 1 2 1 75 Wounds, fractures, etc. As- phyx- iation by gases. Drown ing. All oth- er in- jur- ies. Shoulder, arm, or wrist. Fingers. Lower extremi- ties. Trunk. Internal injuries without external wounds (chest, abdomen, skull). Total. Grand total R'ht Left. Both. Right hand. Left hand. Both hands R'ht 180 166 14 1,948 639 1,204 105 169 75 9 19 66 33 563 29 427 107 147 47 4 2 94 10 Left. 208 182 26 1,846 630 1,136 80 185 68 14 26 77 38 575 30 444 101 147 35 11 15 86 8 Both. 147 116 31 1,585 575 921 89 183 125 6 15 37 48 353 57 110 186 87 25 10 4 48 10 155 118 37 1,527 517 888 122 171 115 12 8 36 40 279 43 104 132 64 21 3 9 31 12 3 2 1 22 16 4 2 5 5 9 i 513 329 184 4,577 1,520 2,736 321 363 194 15 25 129 123 795 129 335 331 264 68 21 11 164 31 841 304 537 4,912 1,503 3,055 354 338 136 10 28 164 148 779 113 365 301 256 71 21 23 141 34 6 3 3 65 20 43 2 7 7 3 12 1 5 6 2 i 1 10 9 1 67 20 44 3 7 2 2 3 1 29 4 18 7 6 2 1 3 100 86 14 577 143 410 24 68 24 6 8 30 18 170 19 95 56 46 22 7 2 15 4 27 25 2 594 194 364 36 31 7 1 9 14 18 64 13 36 15 45 19 6 2 18 24 2,379 1,500 879 21,820 6,675 13,802 1,343 1,659 799 83 148 629 511 4,040 502 2,175 1,363 1,204 368 106 71 659 161 1 1 3 3 2.89« 1,970 926 2 2 35 4 28 3 8 31.100 10,372 18,942 1 786 3 i 1 1 1 7 5 1 1 1 1 2 1 2,13S 1,013 96 1 3 3 4 4 3 8 2 1 5 3 2 181 848 704 5,428 7:» 3,0tl6 l.(i32 1,670 576 181 89 1 S91 3 242 3,421 3,057 55 9,729 10,202 131 4,170 4,107 152 1,237 981 43,536 14 10 157 60,142 67725°— VOL 2—11- 44 ■apven 2184 BEPOBT OF THE COMMISSIONER OF LABOB. PER CENT OF TOTAL INJURIES IN EACH SPECIFIED CLASS, IN [Source: Ministerstvo Torgovli i Promyshlennosti. Otdiel promysh Industry. 1901. Cotton manufactures Wool manufactures Silk manufactures Flax, hemp, and jute manufactures... Textiles, not specified Paper and printing Wood manufactures Metals, machinery, and implements. . Mineral products Animal products (hides, leather, etc.), Food products Chemical industry All other industries Total. 1902. Cotton manufactures Wool manufactures Silk manufactures Flax, hemp, and jute manufactures... Textiles, not specified Paper and printing Wood manufactures Metals, machinery, and implements. . Mineral products Annual products (hides, leather, etc.). Food products Chemical industry All other industries Total. 1903. Cotton manufactures Wool manufactures Silk manufactures Flax, hemp, and jute manufactures... Textiles, not specified Paper and printing Wood manufactures Metals, machinery, and implements. . Mineral products Animal products (hides, leather, etc.). Food products Chemical industry All other industries Total. 1904. Cotton manufactures Wool manufactures Silk manufactures Flax , hemp, and jute manufactures... Textile industries, not specified Paper and printhig Paper, parchment, and wall paper. Printing and cngravhig Paper and printing, not specified. . Wood manufactures Lumber sawing Woodworking, not specified Bums and sca).56 14.37 17.98 9.95 12.81 Trau matism without lacera- tions. 8.83 6.97 7.68 7.27 6.88 16.43 22.49 3.57 18.72 19.91 18.49 14.28 11.60 5.73 7.29 12.71 18.87 16.48 17.35 25.21 19.80 9.25 11.08 9.03 27.07 2.25 9.95 19.42 18.48 Woundii, fractures, etc. Head, face (except eyes), and neck. 5.41 4.82 6.56 6.12 4.49 5.74 One eye. 84 28 41 87 14 18 2.37 7.29 2. 3. 3. 4. 4. .76 ,77 .84 .79 ,66 4.86 4.72 4.01 6.04 4.97 3.52 4.13 3.12 3.75 2.56 2.59 2.04 2.39 1.30 8.72 5.08 10.76 8.23 2.90 1.68 3.13 1.66 4.60 1.85 2.58 2.74 2.67 2.32 4.25 4.86 7.18 2.25 3.40 6.20 4. 69 6. 65 Both eyes. 0.08 '.'43 .18 .17 .20 .11 .09 .24 .14 .22 1.23 .03 .12 .06 ,12 ,83 13 / CHAPTER IX.— WORKMEN 'S INSURANCE IN RUSSIA. 2189 FACTURING ESTABLISHMENTS, BY INDUSTRIES, 1901 TO 1906-Concluded. Wounds, fractures, etc. Shoulder, arm, or wrist. Fingers. Right Left. 8.70 11.43 9.40 4.70 5.08 5.89 3.35 5.10 5.54 4.86 4.98 8.56 12.34 6.25 8.29 4.36 6.82 6.50 7.81 3.59 11.40 21 34 53 49 5.83 4.13 5.09 7.38 8.75 5.98 6.35 5.35 5.99 4.00 4.91 4.99 4.69 6.83 8.00 11.35 12.50 4.42 4.25 5.68 5.14 5.89 3.39 8.09 3.83 3.65 1.66 10.11 3.76 4.96 5.08 Both. Right hand. Left hand. aoe .24 .10 .10 .11 .07 .15 .02 .11 .23 .49 .17 .14 .13 .25 .06 .17 21.91 20.59 31 62 18.35 17.71 16.70 19.87 14.72 14.66 14.44 17.97 16.98 19.15 15.63 13.81 15.21 17.47 14.65 17.67 10.93 20.28 15.81 81 GO 41 .09 12.36 19.90 12.81 16.18 20.75 16.07 26.92 23.53 29.04 15.43 57.99 15.79 14.49 16.13 19.82 15.81 13.43 10.42 15.47 19.34 21.02 14.35 15.48 11.91 18.44 15.33 12.33 11.60 25.84 17.11 14.05 16.96 Lower extremity. Both T.j„v * hands ^*elit 0.16 <43 .24 .21 .15 .32 .21 .19 .23 .11 .33 .69 Left. .42 .22 .14 .16 .37 .12 1.12 .12 .22 &29 8.04 3.85 11.06 6.22 8.43 L51 6.26 6.16 6.36 5.88 7.91 7.40 9.37 10.50 7.78 4.69 10.37 3.97 13.93 6.56 8.80 8.16 2.21 2.25 11.41 4.13 6.73 7.14 2.14 8.71 7.18 9.24 2.81 5.94 6.07 6.00 4.48 8.65 6.71 14.58 14.37 9.08 5.40 10.59 4.11 14.48 6.19 8.80 6.08 6.08 16.85 10.44 3.31 6.93 6.83 Both. Trunk. a4i .71 "."24" .36 .45 .10 .21 .19 .23 .17 .33 .20 i.'io" .35 .14 .53 .55 .59 .43 .36 .34 .37 .26 2.96 3.93 "'3."29' 3.46 436 L51 1.86 1.38 2.16 1.34 3.18 2.37 6.25 4.42 3.54 2.56 3.13 2.60 3.10 3.43 2.75 3.82 3.87 2.25 1.82 L65 2.06 Internal injuries without external wounds (chest, abdomen, skuU). Total. 1.31 L25 1.28 1.41 .93 1.27 .21 1.91 L87 1.92 2.02 1.46 .69 L04 4.97 L65 2.56 L18 1.78 L17 .92 2.70 3.29 3.31 2.25 2.18 9.92 L63 87.28 86.43 90.17 86.83 82.15 76.14 94.92 70.16 64.35 72.87 75.19 77.60 78.87 86.46 8L77 74.17 72.59 74.42 68.77 70.94 83.52 72.09 63.89 58.56 79.77 79.98 66.53 72.39 As- phyx- ia- tion by gases. AU Drown- other ing. in- jurieg. 0.01 .02 ao8 .18 0.17 .36 .04 05 14 1.04 .55 .12 .14 .13 .69 .03 .06 .06 .17 .09 .10 .10 .15 .11 .04 .15 .17 .37 .55 .06 .41 2.21 .47 .43 .15 .27 .a3 .31 .18 .35 .02 .02 .12 1.24 .26 rrrrr 2190 >2 BEPORT OF THE COMMISSIONER OF LABOR. Kesults of Accidents.— Comparatively few of the accidents reported were fatal, only 385 in 1901, 320 in 1902, 312 in 1903 382 m 1904, 332 in 1905, and 371 in 1906. Tlie accidents resultiilg in total permanent disability, next in gravity, have constantly declined from 138 m 1901 to 60 in 1906, and this is probably due to greater efforts to establish the degree of disabihty, due to the compensation act of 1903. Proportionately, both these grave classes of accidents have declmed, the fatal accidents from 1.56 per cent to 0.62 per cent and the cases of total permanent disabihty from 0.56 per cent to 10 per cent, and together from 2.12 per cent to 0.72 per cent, mainly because of the better registration of hghter injuries, resulting either m partial permanent disabihty or in temporary disabihty and even- tual recovery; the former have increased in number from 4 069 m 1901 to 10,296 in 1906, or over 150 per cent, and proportionately from 16.44 per cent to 17.12 per cent; while the cases resulting in tem- porary disability have also more than doubled from 1901 to 1906 increasing from 20,152 to 46,994. ' The per cent of increase has been greatest m the group of partial permanent disabihty, and the increase has been rapid since the act of 1903 went mto effect, there havmg been 3,166 such accidents in 1902, 4,146 m 1903, 5,753 in 1904, 8,196 in 1905, and 10,296 in 1906 This seems to indicate a more favorable adjustment of claims of the injured, as permanent disabihty, even if slight, leads either to a pen- sion or to a payment of the capitahzed value of the pension, which is ten times the amount of the pension. Proportionately fatal accidents are found to be highest in 1906 in the manufacture of earthenware, flour milling, mineral oils, etc In other years the comparative frequency of fatal accidents was very dilferent. They were least frequent in 1906 in woodworking, and in the textde and metal industries. This, however, was due to the larger number of slight accidents rather than to the comparative safety of these industries. As a matter of fact, the largest number of fatal accidents occur in the metal industry, woodworking, and the food industry (flour milhng and sugar refining), where heavy' machin- ery IS used. The cases of total permanent disabihty are so few (less than 1 per cent in 1906) that no general tendency is disclosed by the data As to cases of partial permanent disabihty they are numerically greatest m the metal industries, cotton manufactures, and the food industry, while proportionately they are most frequent in the printing industry, wool, and other branches of textiles. The table following shows the results of accidents, by industries for the years 1901 to 1906. ' f: ■OB CHAPTER IX.— WORKMEN 'S INSURANCE IN RUSSIA. 2191 RESULTS OF ACCIDENTS IN MANUFACTURING ESTABLISHMENTS, BY INDUSTRIES 1901 TO 1906. ^' (Source: Ministerstvo Torgovli I Prorayshlennosti. Otdiel t)romvshlpnno«t! <5to* „*•, slu6haevsrabochimri901-lS6.J Statistika neschastnykh Industry. 1901. Cotton manufactures Wool manufactures ' .' * Silk manufactures Flax, hemp, and jute manufa(> tures Textiles, not specified .' '.'.'.'.'..'.'.' Paper and printing * Wood manufactures '.'.'.'.'.'.. Metals, machinery, and iinple^ ments _ Mineral products ..] Animal products (hides,' leather, etc.) Food products Chemical products '..,[ A 11 other industries. Temporary disability. Total. 1902. Cotton manufactures Wool manufactures '.'.'." Silk manufactures ....." Flax, hemp, and jute manufac- tures Textiles, not specified. .. ....'. Paper and printing Wood manufactures .*.""* Metals, machinery, and- iinple^ ments Mineral products. .......... Animal products (hides, leatiier", Food products ..'.". . . . ." Chemical products. All other industries ! 3,806 660 20 563 38 606 1,004 9,806 461 191 2,278 683 36 20,152 Total. 4,795 719 40 466 104 674 1,120 9,960 426 182 2,460 908 73 85.38 69.26 66.67 80.20 66.67 70.79 69.58 83.73 70.60 72.90 83.02 82.29 80.00 81.44 21,927 1903. Cotton manufactures Wool manufactures [ Silk manufactures .......' Flax, hemp, and jute manufac- tures Textiles, not specified ..." .' ." Paper and printing Wood manufactures. .'.".'.' Metals, machinery, and Vrnple^ ments ^ Mineral products. . . . ! Animal products (hides! ieath'er. etc.) '_ ' Food products ....[ Chemical products ...', '. All other industries.. 89.39 71.97 81.63 81.47 80.62 74.47 75.62 87.23 72.95 75.21 83.08 86.15 82.02 84.83 Total. 5,646 759 60 466 74 701 1,595 12,403 515 204 2,789 1,044 42 26,298 87.06 70.74 75.00 85.82 69.16 77.12 79.04 85.67 76.18 76.98 82.49 84.47 61.77 83.97 Accidents resulting in- Total permanent disability Num- Per Num- ber, cent, ber Per cent. Partial permanent disability. Num- ber. 0.18 84 .58 8 .94 18 1.24 50 .43 13 1.99 2 22 4 1 138 .76 .80 .48 2.22 .56 10 3 1 1 15 12 41 6 4 14 3 2 .18 .30 618 264 124 19 227 373 1,791 139 56 326 117 6 Per cent. Death. Num- ber. 13.86 27.70 30.00 17.66 33.33 26.52 25.85 15.29 21.29 21.38 11.88 14.10 13.33 Per cent. Result of acciaent unknowii. 26 21 1 11 4,069 17 77 1.66 83 .36 1.03 1.65 47 29 2.25 112 486 250 6 85 21 182 271 16.44 .43 1,256 100 41 361 99 8 9.06 25.03 12.25 14.86 16.28 20.11 18.29 11.00 17.12 ! 16.94 12.19 9.39 8.99 15 48 64 40 13 118 26 2 0.58 2.20 3.33 1.56 Num- Per ber. cent. 1.75 3.33 .55 6.12 4.96 4.30 3.13 4.45 Total acci- dents. 385 32 14 1 4,458 953 30 702 57 856 1,443 11,711 653 262 2,744 830 45 1.66 I 124.744 .59 1.40 2.04 .88 41 13 2 0.78 1.30 4.08 16 1.77 38 2.56 3,166 .09 19 .18 1 11 41 3 4 12 3 1 UL .11 .55 .28 .44 1.51 .36 .24 1 47 .27 7.39 277 15 69 28 178 335 1,787 104 40 441 113 20 58 35 10 82 25 4 12.25 4,146 11.40 25.81 18.75 12.71 26.17 19.58 16.60 12.34 15.39 15.10 13.04 9.14 29.41 320 .51 5.99 4.13 2.77 2.37 4.49 15 2.62 3 2.33 18 1.99 40 2.70 103 17 .90 2.91 1.24 13.24 28 16 3 2 2 10 34 58 23 7 87 39 3 5 2.07 44 1.49 19 jl.80 2 |2.25 322 |l25 5,364 999 49 572 129 905 1,481 11.418 584 242 2.961 1.054 89 25.847 43 1.49 3.75 37 1.87 10 68 40 3.40 2.64 2.57 3.16 4.41 312 66 19 2 5 3 19 43 1.02 1.77 2.50 92 2.80 2.09 2.13 189 1.31 31 4.59 99 10 52 37 2 478 3.77 1.54 2.99 2.94 6,485 1,073 80 543 107 909 2,018 14,478 676 2C^ 3.381 1,236 68 1 53 31,. 319 I 2192 REPORT OF THE COMMISSIONER OF LABOR. RESULTS OF ACCIDENTS IN MANUFACTURING ESTABLISHMENTS, BY INDUSTRIES. 1901 TO 1906— Continued. Industry. 1904. Cotton manufactures Wool manufactures Silk manufactures Flax, hemp, and jute manufac- tures Textiles, not specified Paper and printing Paper, parchment, and wall paper Printing and engraving Paper and printmg, not spec- ified Wood manufactures Lumber sawing Woodworking, not specified . Metals, machinery, and imple- ments Iron and steel Machinery and implements. . Metal working, not specified.. Stone, clay, china, and glass Glass manufactures China ware Earthenware Mineral products, not speci- fied Animal products (hides, leather, etc.) Food products Flour milling Sugar and sugar refining Food products, not specified. Chemical industry Chemicals Mineral oils Explosives Chemical industry, not speci- fied All other industries Total 1905. Cotton manufactures Wool manufactures Silk manufactures Flax, hemp, and jute manufac- tures Textiles, not specified Paper and printing Paper, parchment, and wall paper Printing and engraving Paper and printing, not spec- ified Wood manufactures Lumber sawing Woodworking, not specified. Metals, machinery, and imple- ments Iron and steel Machinery and implements. . Metal working, not specified . Accidents resulting in — Temporary disability. Num- ber. 5,735 833 60 830 107 986 490 177 319 2,062 1,389 073 23,325 8,642 13, 416 1.207 1,580 963 47 103 467 391 3,422 393 2,016 1,013 1,248 405 188 61 594 61 40,640 5,863 808 60 982 108 998 487 152 359 1,994 1,330 664 25,089 8,735 15,143 1,211 Per cent. 86.79 67.78 80.00 75.94 67.72 79.45 80.99 73.75 80.56 79.80 77.08 86.06 88.89 91.46 87.49 86.84 88.37 96.11 72.31 63.58 83.54 81.46 82.20 67.53 89.20 76.74 84.96 86.35 86.24 82.43 83.90 79.22 86.09 82.46 61.40 72.29 69.75 60. 67 76.24 76.57 69.41 79.08 77.68 75.74 81.87 83.19 89.01 80.33 81.22 Total permanent disability. Num- ber 4 5 2 26 6 18 2 5 14 3 6 5 4 2 2 70 10 3 2 5 3 2 17 3 11 3 Per cent. 0.08 .24 .28 .63 .08 .16 .27 .28 .26 .10 .06 .12 .14 .28 .62 .71 .34 .52 .27 .38 .27 .43 .92 1.30 15 .14 .23 .21 '23 .16 .44 .19 .17 .25 .06 .03 .06 .20 Partial permanent disability. Num- ber. 807 360 15 243 46 213 91 57 65 447 348 99 2,012 725 1,712 175 162 36 14 38 '74 69 594 154 191 249 177 53 26 11 87 8 5,753 1.100 474 19 380 65 265 119 62 84 494 360 134 4,158 1.017 2,888 253 Per cent. 12.21 29.29 20.00 22.23 29.12 17.16 \r,.04 23. 75 16.41 17.30 19.31 lli.66 9.95 7.68 11.17 11.99 9.06 3.59 21,53 23. 45 13.24 14.38 14.27 2ti. 46 8.45 IH. 86 12. 05 11.30 11.92 14.87 12.28 10.39 12. 19 1.'..47 34 61.349 71. -299 ?2.247 9,867 10.305 20.552 13.257 29.100 23.335 33.585 44.597 67.119 62.018 71.901 72,910 f 2198 REPORT OF THE COMMISSIONER OF LABOR. The general increase of the number of accidents reported in 1900 was due to the union of the local mining councils with the factory councils mto local councils on factories and mines. From 1903 the effect of the workmen's compensation law of June 2 (15) 1903 which demanded accurate accident statistics, was to increase the number of reported accidents by more than 50 per cent. In the original reports from which the tables were (Compiled no companson was made between the number of accidents and the total number of workmen, and different classifications were used In order to obtam the accident rate in the various branches of the min- ing mdustry the two classifications were carefully adjusted For reasons given above, the rates do not approach any degree of accu- racy until 1903, and therefore such comparison is made only for the !fno ^^^'^' ^^^ ""^^ ^^ accidents for the entire industry in 1903 was 73.6 per thousand. The enforcement of the compensation act increased it to 112.7 in 1904. Contrary to popular impression the work in the metallur^rical establishments is more hazardous than that in the mines, the first showmg m 1905 a rate of 127.7, and the latter one of 92.4 only There are many differences in the various classes of mines and quar- ries Ihe quarnes showed an accident rate of only 4.3 per thou- sand. This rate may be explained by the fact that the great majonty of quarries with very few employees do not come under the provision of the compensation act of 1903, and no increase has taken place m the number of accidents reported since 1904 Thus m 1905 there were 3,920 quarries with 36,820 employees, or less than 10 emp oyees per establishment. In the gold mines the rate is also very low-14.9 per thousand-because most of tlio gold is obtained m Russia by processes of surface mining. In the other metal mines the rate rises to 48.5, and in the oil fields to 65.3, while m the coal mines it is as high as 198.4 per thousand. In regard to the results of the accidents, the cases are classified mto fatal and nonfatal, no further information as to the nature of mjury m the recovered cases being given. The data for fatal acci- dents are much less subject to fluctuation, and evidently more com- parable for the entire decade. They constitute about 1 per cent of all accidents; m the coal mines the proportion rises to about 1^ per cent. In 1903 one out of every 1,188 employees shown in the table followmg was fatally injured; and in 1907 one out of every 983. In I the coal mines the proportion was 1 out of every 454 in 1907. CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2199 NUMBER OF EMPLOYEES, ACCIDENTS REPORTED, AND ACCIDENT RATE PER 1009 IN MINES AND METALLURGICAL ESTABLISHMENTS, ACCORDING TO REPORTS OF SCIENTIFIC MINING COMMITTEE, 1903 TO 1907. [Source: Sbomlk Statisticheskikh svedenii o gomozavodskoi promyshleanosti Rossil, 1903-1907.1 Industry. Metallurgical establishments: 1903 1904 1905 1906 1907 ;;.;; Coal mines: 1903 1904 1905 1906 1907 '.'.'.'.'.'.'.'.'. Gold, silver, and platinum mines: 1903 1904 1905 1906 1907 "!!!!!!!! Iron, copper, and other mines: 1903 1904 1905 1906 1907 .'!!!!!.'!]!!;" Quarries: 1903 1904 1905 1906 1907 '.["["'.'.[[[]'.'. Oil wells and salt mines: 1903 1904 1905 1906 1907 [[[[[[[['.[[[['.[ . All mines and quarries: 1903 1904 1905 1906 1907 """!!!!!!!!!!!!!! All mines and metallurgical establishments 1903 1904 1905 1906 1907 '...". Number of em- ployees. Accidents reported. 280,987 260,049 245, 146 281,535 264,136 105, 774 117, 743 120,214 145,392 164,819 90,633 81,703 77,203 74,366 72,484 42,653 48,177 50,678 52.980 61,071 43,946 41,605 36,820 34,875 34,367 41,932 46,249 47,696 49.605 64,737 324,938 335, 477 332,611 352,245 387,478 605,925 595, 526 577, 757 638,468 651, 614 Fatal. 113 112 117 99 116 211 266 380 350 363 53 50 53 48 74 45 59 61 40 70 50 38 26 20 29 38 30 32 45 all 397 443 552 503 547 510 555 Nonfatal. 602 663 31,214 37,817 31,180 34,332 36,362 7,711 20,853 23,468 27,871 29,410 779 915 1,090 1,382 1,703 649 2,381 2,396 3,283 4,143 250 162 132 142 162 3,484 4,536 3,083 4,289 0900 12,873 28,847 30.169 36,967 35,885 44,087 66,664 61,349 71,299 72,247 Total- Number. 31,327 37,929 31,297 34.431 36,478 7,922 21, 119 23.848 28.221 29,047 832 965 1,143 1.430 1,777 694 2,440 2,457 3.323 4,073 300 200 158 162 191 3,522 4,566 3,115 4.334 a 911 13,270 29, '290 30,721 37. 470 36,432 44,597 67, 119 62,018 71.901 72,910 Per 1,000 em- ployees. 111.5 145.9 127.7 122.2 138.1 74.9 179.3 198.4 194.1 176.2 9.2 11.8 14.9 19.2 24.5 16.3 50.6 48.5 62.7 66.7 6.8 4.1 4.3 4.7 5.5 84.0 98.7 65.3 87.5 Number of em- ployees to each fatal ac- cident. 40.8 84.2 92.4 106.4 94.0 73.6 112.7 107.4 112.6 111.9 2.4S6 2,322 2,095 2.844 2,277 501 443 316 41S 454 1,7W L634 1,457 1,549 979 94€ 816 831 1,324 873 87t 1.095 416 744 185 1.104 1.542 1,492 1. lOS 818 757 603 TOt 713 1, 18S 1,073 864 1,061 983 a Data are incomplete. Accident Statistics According to Reports of Mine Inspect- ors.— Notwithstanding the high rate of 112 per thousand, the acci- dent statistics gathered by the scientific mining committee and presented in the prepeding table are far from complete. Since the accident compensation law of 1903 went into effect, the mining department of the Ministry of Commerce and Industry has under- taken the publication of accident statistics through its mining inspec- tors, who exercise the same functions in regard to the mining and 67725°— VOL 2—11 45 / 2200 BEPOBT OF THE COMMISSIONER OF LABOR. metallurgical establishments as the factory inspectors do for the manufacturing industry. The reports for 1905 and 1906 are available, and, notwithstanding a certam lack of statistical accuracy (which manifests itself mainly m the fact that in many instances the items in the tables do not add to the total), the data of these reports are thought sufficiently maportant to be presented here. The reports embrace only such mmmg and metallurgical establishments as are subject to mine inspec- tion and include only about 500,000 workmen as against 650,000 recorded by the mining committee, which includes also the establish- ments of the State and Crown. Nevertheless the mine inspectors record a larger number of accidents (69,031 in 1905 against 63 018 and 75,907 .in 1906 against 72,910), and a very much higher 'acci^ dent rate, which in 1906 reached 150 per thousand. The rate in the metallurgical establishments rises to 177 per thousand and in the coal mines to 247.6. NUMBER OF EMPLOYEES, ACCIDENTS REPORTED. AND ACCIDENT RATE PFR 1 nnn [Source: Ministerstvo Torgvoli i Promyshlennosti Corny Departament. Statistik. neschastnykh da- chaev s raboclumi, 1905, 1900,] vi^««»iuj^ikii uu Industry. MetaUurgical establishments. . Metal mines Coal mines '.'.'.'.'.'.'. Gold mines '.'.'.'.'.'.'.'. Salt quarries '..'.'.'.'.'.'. Quarries '..'.'.'.'.'.. All others and unelassided («) IVA. Em- ployees. Accidents reported. Total. 188.080 49, 987 117,589 81,715 3,204 7.491 38, 412 & 483, 882 Number. 29,377 2,380 32,232 1,188 11 160 3,683 Per 1,000 em- ployees. 1906. Em- ployees. 156.2 47.6 274.1 14.5 3.4 21.4 95.9 176, 436 47,344 140, 139 76,342 2,133 14,787 46,697 Accidents reported. Number. 09,031 142.7,^504,555 31,226 3,143 34,697 1,599 13 176 5,053 75,907 Per 1,000 em- ployees. 177.0 «6.0 247.6 20.9 6.1 11.9 108.2 150.4 inSu^sty.^'"''" ^' ^^"^"' "^^^« ^^^^"*'*' ^^'°^i°g "^^^^y «" ^ell«^ were not clarified by branch of f> This total is not the correct sum of the items; the figures are given as shown in the original report. The nature of the injuries sustained in mines and metallurgical establishments is given in the following table, and the same classifi- cation bemg used as for accidents in manufacturing establishments comparisons are made possible. Bums are very frequent in the metallurgical plants, representing 14.31 per cent of all accidents. Injuries to the upper extremity and fingers seem less frequent than m manufacturing estabhshments, being, in 1906, 27.6 per cent against 35 per cent. CHAPTER IX. workmen's INSURANCE IN ETJSSIA. 2201 NUMBER AND PEE CENT OF INJURIES OF EACH SPECIFIED CLASS IN MINES AND METALLURGICAL ESTABLISHMENTS, ACCORDING TO REPORTS OF MINE INSPEC- TORS, 1905 AND 1900. [Source: Ministerstvo TorgovH i Promyshlennosti. Gomy Dcpartament. Statistika neschastnvkh sin- chaev sxabochimi, 1905, 1906.] ' Nature of injury. 1905. Bums and scalds: One part of body (except eyes) , Several parts of ]x>dy (except eyes) Eyes Accidents in— MetaUurgl- | cal e-stab- Metal mines. lishments. Num- ber. Total Traumatism with- out lacerations. ., Wounds, ftactiires, etc.: Head, face (ex- cept eyes), and neck One eye Both eyes fihooW'er, ann, or wrist- Right Left Both Fingers— Rijjht hand Left hand.. Both hinds. Lower extrem- ity- RiRbt LeCt Both Trunk Internal inju- ries without external wounds er 602 9.71 2.56 2.04 4,218! 14.31 8,136! 27.60 Total. Asphyxiation by ^gas Drowning All other injuri^]!! Grand total.. 1906. Bums and scalds: One part of body (except eyes) Several parts of l>ody (except eyes) Eyes Total. 1,383 960 61 1,506 1,224 64 3,453 3,050 144 2,075 1,766 74 318 31 21 10 62 Per cent. Niun- ber. 1.23 .84 • «)! 264 166 62 2.47i 492 309 355 16, 433 31 661 29.479 2,865 720 738 4.69 3.26 .21 5.11 4.15 .22 11.71 10.34 .49 7.04 5.99 .25 L08 1.20 55 74 20« 99 14 141 152 5 342 319 7 351 317 18 92 12.31 11,140 84 2,149 8.28 3.94 .56 5.62 6.05 .20 13.62 12.70 .28 13.98 12.62 .72 3.66 3.35 85.58020,511 .11 2.24 2 "is 100.0002,511 .80 .'7^ olOO.OO 9.15 2.30 2.36 4.323 13.81 39 17 21 / 1 L23 .53 .66 1.42 2,842 1.458 51 1,451 1,494 62 3.940 4,274 68 1.737 1,801 69 85 Per oent. 0.81 .51 .19 L51 Gold mines. Nuni- Per ber. oent. 14 34. 2R 413 15 254 8.74 4.48 .16 4.46 4.59 .19 12.11 13.14 .21 S.34 5.54 .21 2.C4 281 1.27 63.07 .30 .05 .78 «32, 522;«100. 00 233 193 62 488 .66 .55 .17 1.38 131 42 3 78 65 2 103 105 1 131 1351 7 41 0.51 .59 .06 All other. Nxun- ber. 18 23| U Per cent. L72 2.19 1.05 Total. Num- j Per bM. cent. 3,181 I.S7 971 686 L18 52 4.96 23.69 1 10^ 9.72 21 5 6 I5J 11.05 3.54 .25 &58 5.48 .17 8.68 8.85 .08 11.05 11.38 .59 3.46 L77 79 104 4 59 43 5 110 124 2 127 1.32 2 38 7.53 9.91 .38 5.63 4.10 .48 4,838 19,977 4.643 2.663 133 3.235 2.978 142 L39 6.95 28.71 10. 4»|' 7. 948 11.82 7,872 . 19 216 51 865 72.93J 880 .42 .51 1.27 1,186 11 21 1 "i.3 100.0001,049 .70 .26 .38 1.34 25 17 11 S3 12.11, 12.58i .19j 3.62' 4.421 4.1S1 170 1,343 4.86 83.89 .10 «ioo.or> 2.47 L68 1.09 5.44 924 40,839 137 21 3,774 3,173 975 845 4.993 6.67 3.83 .19 4.65 4.28 .20 11.42 11.31 .31 6.35 5.97 .25 1.93 L33 58.68 .20 .03 5.42 009.588*100-00 4.14 1.27 1.10 a 51 b Including i ,f,mnoff?n^*'r;!H^ °^ ^^"^ l^"^-^' ^^^ ^^"^**^ ^"^ eiven as shown in the orirfnal report, total i^northecS?.n^n/til' injuries to persons who received injuries of more than one kinr This wuii IS not tne correct sum of the items; the figures are given as shown in the orijrinal report. ^ 2202 REPORT OF THE COMMISSIONER OF LABOR. NUMBER AND PER CENT OF INJURIES OF EACH SPECIFIED CLASS IN MINES AND METALLURGICAL ESTABLISHMENTS, ACCORDING TO REPORTS OF MINE INHPEC- TORS, 1905 AND 1906— Concluded. Nature of injury. 1906— Concluded. Traumatism with- out lacerations . . . Wounds, fractures, etc.: Head, face (ex- cept eyes), and neck One eye Both eyes Shoulder, arm, or wrist: Right Left Both Fingers — Right hand Left hand . . Both hands Lower extrem- ity- Right Left Both Trunk Internal inju- ries without external wounds (chest, abdo- men, and skull) Accidents in- MetaUvu-gi- cal estab- lishments. Num- ber. 5,872 Per cent. 18.76 1,287 1,344 126 1,142 1,089 52 4,518 5,401 96 2,640 1,896 59 257 To^aL by Asphyxiation gas Drowning All other injuries. . . Grand total.. 701 20,618 4.11 4.29 .40 3.65 3.48 .17 14.44 17.26 .30 8.44 6.06 .19 .82 Metal mines. Num- ber 454 301 167 21 la^ 156 13 679 389 18 288 205 18 76 Per cent. 14.25 2.24 117 65.88 2,641 9.45 5.24 .66 6.06 4.90 .41 21.31 12.21 .56 9.a3 6.43 .56 2.39 Coal mines. Num- ber. 11,151 Per cent. 31.58 3.67 82.88 2,968 1,529 53 1,761 1,817 64 4,605 4,826 55 2,058 2,111 106 941 Gold mines. Num- ber. 381 538 8.40 4.33 .15 4.99 6.] .18 13.05 13.67 .16 5.&3 5.98 .30 2.66 Per cent. 24.37 All other. Num- ber. 95 173 65 14 100 61 2 140 136 3 182 153 14 55 L62 31 1.98 11.07 4.16 .89 6.40 3.90 .13 8.96 8.70 .19 11.64 9.79 .90 3.52 Per cent. Total. Num- Per ber. cent. 9.40 19 1 463 631,296 .07 (a) 1.48 100.00 13 3,186 .03 '."4i 23,492 66.53 39 2 140 100.00fc35,312 .11 .01 .39 100.00 1,129 5 5 22 72.23 92 76 4 46 40 4 92 95 4 84 10-3 12 84 81 17,953; 23.43 9.10 7.62 .39 4.55 3. IHi .39 9.10 9.40 .:i9 8.31 10. 19 1.19 8.31 817 .32 .32 1.40 2 34 61,563 6100.00 61,011 8.01 4,821 3,181 220 3,244 3,163 135 10,034 10,907 176 5,255 4,468 209 1,413 1,468 80.81 .20 3.36 6100.00 6.29 4.15 .29 4.23 4.13 .18 13.09 14.23 .23 6.88 5.84 .27 1.84 1.91 48,699 63.55 6i 9 672 I .08 .01 .88 c76, 629,6100. 00 a Less than one-hundredth of 1 per cent. b The total is not the correct sum of the items; the figures are given as shown in the original rej>ort. c Including 4,205 injuries the nature of which is not reported. This total is not the correct sum of the items; the figures are given as shown in the original report. Kesults of Accidents. — Fatal results of accidents are propor- tionately more frequent in the mining establishments than in manu- facturing, the proportion of fatal accidents in mines in 1906 being 0.82 per cent as against 0.62 per cent in manufactures. On the other hand, the cases of permanent disability are not so frequent, as only 8.21 per cent resulted in permanent disability as against 17.12 per cent in the manufactures. The number and per cent of accidents resulting in temporary dis- ability, permanent disability, and death are shown in the table following: CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2203 RESULTS OF ACCIDENTS IN MINES AND METALLURGICAL ESTABLISHMENTS ACCORD ING TO REPORTS OF MINE INSPECTORS, BY INDUSTRIES, 1905 AND 1906. [Source: Ministerstvo TorgovU i Prorayshlennosti. Gomy Departament. Statistika neschastnvkh sluchaev s rabochimi, 1905, 1906.] ^^^u^iawy mm Industry. 1905. Metallurgical establish- ments Metalliferous mines Coalmines Gold mines All other and unclassi- fied (6) Total 1906. Metallurgical establish- ments Metalliferous mines Coal mines Gold mines All other and unclassi- fied (6) Total Accidents resulting in- Temporary disability lasting— 3 weeks. Num- ber. 22,742 1,640 22,248 791 2,510 49,931 23,439 2,288 21,620 1,037 2,341 50,725 Per cent. 77.41 68.91 69.03 66.58 65.13 72.33 75.06 72.80 62.31 64.85 44.66 66.83 3 to 13 weeks. Num- ber. 4,941 452 6,331 213 583 12,520 5,705 568 8,634 313 1,060 16,280 Per cent. 16.82 18.99 19.64 17.93 15.13 18.14 Over 13 weeks. Num- ber. 345 35 549 48 40 «1,077 ;l: 18.27 18.07 24.88 19.59 20.22 480 62 745 35 103 21. 45 al, 404 Per cent 1.17 1.47 1.70 4.04 1.04 1.47 1.54 1.65 2.15 2.19 1.96 Permanent disability. Partial. Num- ber. 1,210 199 2,717 48 619 4,793 1.85 1,489 183 3,313 86 1,158 6,229 Per cent. 4.12 8.36 8.43 4.04 16.06 6.94 4.77 5.82 9.55 5.38 22.09 8.21 Total. Num- ber. 16 8 25 2 56 14 10 12 10 8 54 Death. Per Num cent. ber. 0.05 .34 .06 .17 13 .08 .05 .32 .03 .62 .15 .07 116 46 361 50 67 640 95 39 339 66 85 624 Per cent. 93 12 21 74 93 Total acci- dents. 39j«29. 377 2,380 12|a32.'232 ol,lS8 «3,854 «69,031 .30031.226 1.24 03.143 .98o34,697 4.13^ ol,599 1.621 o5,242 ,82075,907 report, branch of a This total is not the correct sum of the items; the figures are given as shown in the original Ind t Caucasus mmmg district, including mainly oil wells, were not classified by Causes of Accidents.— The causation of accidents in mines and metallurgical establishments, as shown in the follow mg tables for 1905 and 1906, is very much different from that in manufacturing estab- lishments. Cave-ins, collapse of structures, and falling objects are responsible for over one-fourth of all the accidents reported, loading and unloading for nearly one-fifth, and transportation by rail for about one-eighth, so that these three classes alone claim from 55 to 60 per cent of the accidents. While in manufacturing establishments accidents due to machinery or dangerous substances represent nearly two-fifths of all accidents, in mines and metallurgical establishments these causes are comparatively imimportant, claiming in 1906 only 18.8 per cent. Hand implements in manufactories caused 15 per cent, and in mines and metallurgical establishments only 8.85 per cent of the total number of accidents. As accidents due to collapse of structures, falls, loading, and raih-oad transportation are likely to be more severe, this difference in causation carries with it a corre- spondingly greater gravity than injuries in manufacturing establish- ments. Especially is this true of the coal mines, where the three causes specified were responsible in 1906 for nearly three-fourths of all accidents. 2204 BEPORT OF THE COMMISSIONEB OF LABOm. CAUSES OF ACCIDENTS IN MINES AND METALLURGICAL ESTABLISHMENTS, ACCORI>- ING TO REPORTS OF MINE INSPECTORS. 1905 AND IQOfli [Source: Ministerstvo TorgoTli i Promysliiainosti. Gorny Departamait- Statbtlka neschastaykli sluchaev s rabocbimi, 1905, 1906.] Cause of accident. Accidents in— Metallur^cal establijih- ments. Num- 1 Per bar. 1 cent. Metal mines. Coal mines. Gold mines. 1905. Engines Transmission apparatus Worldng machinery Lifts, elevators, etc Steam boilers and steam fittings Explosives Injurious gases Poisonous and injurious substances Cave-ins, collapse, and falling objects Falls Loading, unloading, and carrying Transportation, rail- road Transpt^ation, water. . . Animals Implements All others Total 1906. Engines Transmission apparatus Working machinery Lifts, elevators, etc Steam boilers and steam >• fittings Explosives Injurious gases i Poisonous and injurious { substances Cave-ins, collapse, and ( falling objects Falls Loading, unloading, I and carrying Transportation, rail- ' road Transportation, water. . , Animals Implements All others «29,377 251 305 2,170 606 254 15 173 3,395 2,941 1,409 7,824 2,115 51 2,929 4,976 Num- ber. •100.00 0.85 1.04 7.38 2.06 .86 .06 .59 11.56 10.01 4.80 26.63 7.20 .02 .17 9.97 16.94 Per cent. Total. 224 240 2,529 492 190 16 54 3,529 3.892 1,804 7,660 2,267 8 63 3,213 5,(^ «31,226 .72 .77 8.10 L57 .61 .051 -17 11.30 12.46 5.78 24.53 7.20 .02 .20 10.29 16.17 2 3 59 S2 14 59 1 36 676 196 751 99 Num- ber. 31 247 154 2,380 2 4 43 47 18 64 25 946 303 562 0.08 .13 2.48 2.19 -59 2.19 .04 L51 28.40 8.24 3L55 4.16 Per cent. Num- ber. 1.30 10.38 6.47 alOO.OO 37 203 434 902 1^ 274 63 264 13,019 1,112 4,269 5,840 S2 363 2,383 2,812; 0.11 .63 1.35 2.80 .60 .85 .19 .82 40.40 3.45 13.21 18.12 .10 1.13 7.39 8.72 Per cent. All tithers and un- classi fied. 7 19 26 30 11 39 4 0.99 i.eo 2.19 2.63 .93 3.28 .34 .50 Total. Num- ber. 322 27.10 95 8. (K) a32, 232 •100.00 28 291 1991 100.00 « 3. 143 .06 .12 1.36 1.49 .57 2.03 .19 -79 30.09 9.64 17.88 608 19.34 9.25 14 265 297 791 125 1£2 57 IrtO 13,933 1,260 4,4^2 7,477 14 3r.5 2, 359 95 217 S 55 134 113 1,1880100.00 6.33 2,991 0100.00,034,697 .04 .76 .86 2.28 .36 .44 .16 .48 40.16 3.63 12.77 21.55 .041 1.05i 6.80 8.62 30 24 25 30 5 39 5 14 445 144 123 8.00 18.27 .67 4.63 11.28 9. 51 100 62 219 119 51 34 5 112 431 202 731 184 51 550 1,008 397 592 2,908 1,709 523 421 246j ■ 3,813 17,389 3,014 «13,661 8,455 46 551 6,243 «3,854 1.88 l.fiO 1.56 1.88 .n 2.44 .31 .88 27.83 9.01 209{ 13.07 5 .31 68! ^ 26 225 14. 07; 139 13 437 181 86 14 6 151 469 331 996 122 1 37 637 I'er cent. 69,031 0.57 .86 4.21 2.47 .76 .61 .36 5.52 25. 19 4.37 19.79 12.25 .07 .08 9.04 9,063 13.13 ^100.00 206i 13.01 1,113 100.00 1,599 100.00io5,242 409 546 3,331 1,491 424 285 128 3,885 19.685 3,842 13,773 10,683 28 561 6,725 9,561 •75,907 .53 .71 4.38 1.96 5.58 .37 .16 5.11 25.93 5.06 18-14 14.07 .03 -73 8.85 12.59 al00.00 a This total is not the correct sum of the items; the figures are given as shown in the oriijinal report. ACCIDENTS TO RAILWAY EMPLOYEES. The reports of the Russian railways contain data of accident sta- tistics for over 20 years, and they show a very low accident rate. Thus in 1906, according to these reports, there were 11, 784 accidents, of which 814 were fatal, the number of employees being 825,:U5, which gives an accident rate of only 14.28 per 1,000 employees. It CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2206 seems certain that only the grave injuries are reported, as is shown by the fact that the fatal accidents constituted nearly 7 per cent of the total number of accidents reported. But another more accurate source gives a very much larger number of accidents. This is the series of annual reports of the medical service of the Russian rail- ways, from which the following tables were compiled for 1902 to 1907. The number of accidents is over seven times as large as that reported by the raikoad administrations, and the rate has rapidlv increased from 55 per thousand in 1902 to 102 per tliousand in 1907. NUMBER OF ACCIDENTS TO EMPLOYEES IN RAILWAY SERVICE. 1902 TO 1907. [Source: Ministerstvo Putel Soobshchenia. Upravleniezheleznykhdorog. Otchiot o vrachebno-sanitar nora sostoianii zheleznykh dorog 1902-1907 ] "i- " ^racneono-samtar- Year. 1902. . . 1903. . . 1904. . . 1905.... 1900.-.. 1907.... Number of accidents. In train service. Light. 5,218 8,054 9,646 8,437 15,603 15,301 Severe. 1,036 1,209 2,050 1,643 1,846 1,967 FataL 367 479 449 525 662 682 Total. 6,621 9,742 12,145 10,605 18,111 17,950 Outside of train service. Light. Severe. 26,729 31,747 37,403 44,020 56,067 62,554 1,029 1,176 1,429 1,826 1,7&3 2,133 Fatal. 120 109 123 275 177 210 Total. 27,948 33,022 38,955 40, 121 58,007 64,897 TotaL Light. 32,017 39, 791 47,049 52, 457 71,670 77,855 Severe. Fatal. TotaL 2,065 2,385 3,479 3,469 3,609 4,100 487 588 572 800 830 892 34,569 42,764 51,100 56,726 76, 118 82,847 NUMBER OF EMPLOYEES, NUMBER OF ACCIDENTS, AND ACCIDENT RATE PER 1 000 IN RAILWAY SERVICE, 1902 TO 1907. ' [Source: Ministerstvo Putei Soobshchenia. Upravlenie zheleznykh dorog. Otchiot o viachebno-sanitar nom sostoianii iheleznykh dorog 1902-1907.) racneono-samiar- Year. 1902 1903 1904 1905 1906 1907 Employees, Accidents. Fatal. 628,021 662,567 709, 531 726,825 763, 425 808,444 Number. 487 588 572 800 839 892 Per 1,000 em- ployees. 0.77 .88 .81 LIO LIO 1.10 Severe. Number. 2,065 2,385 3,479 3,469 3,609 4,100 Per 1,000 em- ployees- 3.29 3.60 4.90 4.77 4.73 5.07 Light. Per 1,000 Number. I em- ployees. 32,017 39,791 47,049 52, 457 71,670 77,855 50.98 60.06 66.31 72.17 93.88 96.30 Total. Number. trt, Ouv 42,764 57,100 56,726 76,118 82,847 Per 1,000 em- ployees. 55.04 64.54 r2. 02 78.04 99.71 102.47 Total Number of AcciDENTs.-It is possible to combine the statistical data for manufacturing industry, mining and metallurgical inrtustry and railroads, and to obtain approximately the total num- ber of industnal accidents in Russia, not including agriculture or commercial establishments. In the following table this has been done ror 1906. The accidents included comprise those recorded by the factory inspectors, mine inspectors, and the raiboad service " The .^atement is not altogether complete, for many smaller establish- ments and many government manufacturing establishments, not 2206 REPORT OF THE COMMISSIONER OF LABOR. subject to factory inspection, are omitted. But as far as the data go they show 1,834 fatal and 210,333 nonfatal accidents, giving a total of 212,167 accidents for 2,927,965 employees, or a rateof 72.46 per thousand. TOTAL NUMBER OF EMPLOYEES AND OF RECORDED ACCIDENTS AND ACCIDENT RATE PER 1,000, 1906. [Compiled from preceding tables.] Industry. Manufactures Mines and metallurgical estab- lishments Railroads Total Employees. Accidents. Fatal. Number. 1,658,985 505,555 763,425 371 624 839 2,927,965 1,834 Per 1,000 em- ployees. 0.22 1.23 1.10 .M Nonfatal. Number. 59,771 75,283 75,279 Per 1,000 em- ployees. 36.03 148.91 98.61 210,333 7L83 Total. Number. Perl, (XX) em- ployees. 60,142 75,907 76,118 3ft. 25 150.15 99.71 212, 1(17 72. 46 SICKNESS INSURANCE. The field of ''sickness insurance," which includes all forms of pro- vision for workmen in case of sickness, may be divided into (1) med- ical care of the diseased, and (2) financial assistance to him and those dependent upon him for support during the time of inabihty to work, resulting from such sickness. Whenever such sickness follows an industrial accident the various compensation acts, described in the preceding sections, meet this condition by requiring the employer to furnish both the cost of medical help and the allowances to the injured and his family. As far as sick benefits are concerned, the law requir- ing that fines collected in estabUshments shall be used for that pur- pose is the only general legislation on tlie subject. In addition, some provision for the sick may be found in isolated branches of industry: In government mining, and in metallurgical, and a few other industrial establishments. Establishment sick benefit associations are found mainly in the mining industry of the western Provinces, such as Poland and the Baltic region; and industrial sick benefit associations are found in the larger industrial centers. Informatiou in regard to these private local funds is very meager. The need of a better system of provision for the sick is strongly felt in Russia, and a system of obUgatory sick insurance through estabhshment benefit associations forms a part of the general plan of compulsory workmen's insurance, discussed both in the governmental schemes and by society at large since 1905. A bill to that effect has been introduced into the Third Duma in conjunction with the bill for a new accident-insurance law. CHAPTER IX. — WOEKMEN's INSURANCE IN RUSSIA. 2207 MEDICAI, Am. HISTORY. To understand the development of Russian legislation in regard to medical assistance to workmen employed in factories it is necessarv to point out that, in theory, medical aid is considered a proper govern- mental function, to be supphed in cities by the municipal govern- ment, and in the rural districts by the so-called "zemstvos"— orc^ans of local self-government. In provinces where zemstvos have not been organized the duty of furnishing medical aid to the rural population devolves upon the governmental authorities. In practice only averv few mumcipahties have met this duty, and in those provinces which have as yet no zemstvos the organization of medical aid is purely formal and perfunctory. On the other hand, the zemstvos have, since their orgamzation in the early sixties, always looked upon the organi- zation of medical aid as one of their most important functions The combined budgets of these zemstvos amount to many miUions of dollars, and about one-fourth of the total expenditures is being devoted to medical aid in rural communities. There are many fr^ hospitals and dispensaries in each county (uyezd) where a zemstvo exists and the Russian peasant may be said to be fairly well provided with free medical assistance. Law OF 1866.-The law which imposed upon the factory owners the duty of furnishing medical aid to their factory employees dates from the yearl866. It owes its origin to the begimiilig of an epi- demic of Asiatic cholera in Moscow. The governor of Moscow, con- sidering the large factories with their insanitary conditions and large number of workers a possible means of spreading the cholera epidemic m a report to the minister of interior suggested that the owners of large factones be required to estabhsh hospitals and employ physi- cians m connection with their industrial establishments. As a result of this suggestion a decision of the committee of ministers was approved by the Emperor August 26 (Sept. 7), 1866, ordering as a temporary measure that "there be established in comiection with each factory employing 1,000 workers a hospital with ten beds, and at each factoiy employing more than 1,000 workers 15 beds or more and at each factoiy employing less than 1,000 workers 5 beds or more at the rate of one for each 100 workers." Though the order Th :r , *" . ?,* tef^Poraiy measure no time hmit was mentioned, and the law is still in force. The indefinite language of this law and the absence of anv punitive measures for noncompliance with its demands or any organ of inspec- tion and control except the police authorities, left the entire problem thatTZT'^ 7 r^'^l*'""- "^^^ '^"g"''^*' «f *!>« order showed that the mtention existed at that time to foUow it up with a systematic 2208 REPORT OF THE COMMISSIONER OF LABOR. law regulating the question of medical aid to factory employees, for the minister of interior was ordered to ])resent a plan for such legis- lation to the Imperial Council. In 1867, and again in 1874 in con- nection with a proposal of a law for regulation of conditions of employment, these legislative propositions were discussed, but with- out success, as the Imperial Council judged the law of 1866 to be sufficient and refused to go any further in tliis matter. The effect of this law was far from uniform; its execution depended mainly upon the zeal and energy of the provincial governors. In some factori<^s good hospitals were estabhshed ; in others the beds were left without medical attendance, and in a great many locaUties the law was entirely disregarded. In many factories the costs of these medical estabUshments were charged to the workmen. Law of 1886. — This latter abuse was checked by the law of June 3 (15), 1886, regulating the conditions of employment and the rela- tions between employers and employees, which among other things prohibited the deducting of the cost of medical aid from the wages of the workmen (Code, Vol. XI, 2, Industrial Code, sec. 102). On the other hand, it estabhshed serious limitati<»ns to the extent of medical aid to the workmen required of the emj)loyers, by laying down the rules that the employer could discharge any workman at two weeks' notice and immediately in case of a contagious disease. Evidently a dismissed employee had no claim to medical aid from the employer after the termination of the employment. The law of June 3 (15), 1886, established municipal factory commis- sions for St. Petersburg, Moscow, Odessa, and Warsaw, and provincial • commissions for the separate Provinces, and these commissions were intrusted among other things with the atlministrative regulations of the problem of medical aid to factory employees. Extension of the Law to Minincj and Metallitigy. — By a decree of March 9 (21), 1892, the provisions of the law of 1886 were extended to apply to the mining and metallurgical industries and were embodied in the Mining Code. Local mining commissions were estabhshed with functions parallel to those of the fatrtory commis- sions, including the regulation of medical assistance to the employees A law requiring proprietors of mining and metallurgical establish- ments to establish hospital facihties for treatment of sick employees had been on the Russian statute books for sixty years before similar provisions were made for factor}^ industries, namely, in the general mining law of July 13 (25), 1806, for the mining industrj^ was devel- oped much earher than manufactures. The greater danger to health and life from work in the mines was evident, and many of these estab- lishments were owned from the beginning of Russian industry by the State or Crown, which was more inclined to take care of its employees. chapter IX. workmen's insurance in RUSSIA. 2209 According to this law, both the State and private mining and metal- lurgical estabUshments employing 200 persons or more were required to have a hospital and one or more resident physicians; but in the case of privately owned mines the law remamed a dead letter until 1892. Finally both the local factory commissions and tlie local mining commissions were united into factory and mining commissions by the act of June 7 (19), 1899, which also established a central factory and mining commission and put it in control of the local commissions, for the purpose of unif\dng this work. The central commission is required to formulate general principles for the admin- istration of the law of 1866, but the actual administration is still in the hands of the local commissions and exercised through the factory and mine inspectors. Provincial commissions were establislied in 64 provmces; in 35 of these such regulations were estabhshed and m the remaining 29, mostly nonindustrial provinces, practicaUy nothing wa^ added to the ambiguous language of the law of 1866. WhUe the establishment of factory hospitals was mandatory accord- ing to the exact language of the law of 1866, it was nevertheless evi- dent that for small industrial estabUshments mth 100 or even less employees the organization of such a private hospital would either be a great hardship, possibly not demanded in view of the existence of good hospitals in the immediate vicinity, or would become a pure formality without any substantial benefit to the employees. Nor was It clear whetlier the law appUed to factories wiUi less than 100 workmen, whether 5 beds was the minimum number for a factory hospital, and what the requirements were in r^ard to medical attendance. In answer to inquiries from the Moscow provincial factory commission it was explained in 1887 that conditions had changed considerably during tlie prex^eding two decades, and that the growth of the activity of zemstvos and municipaUties in supplying liospital faciUties has made the organization of special factory h^ pitals unnecessary in many cases, and that as a substitute for the required hospitals factory owners may in certam cases be required to enter into agreements with zemstvos and other bodies for the supply of hospital and other medical faciUties to their employees. REGULATIONS OF MOSCOW. As an example of the regulations established by the provincial factory commissions, those in force since February 1 (13) 1897 in the province of Moscow, outside of the city of Moscow, may' be briefly mentioned. Factories employing 500 or more workmen are required to have a factory hospital with one bed for each 100 work- men, a resident physician and a -feldsher'' (a medical assistant of a somewhat higher grade than a tramed nurse). When tlie number 2210 EEPORT OF THE COMMISSIONER OF LABOR. of workmen exceeds 3,000 two physicians must be em])loyed, one of whom shall reside at the factory. Factories employing from 17 to 500 workmen may be freed from this obhgation if they make arrange- ments with the zemstvo hospital or any other hospital, or several factories may combine for estabhshing a common hospital. In exceptional cases such arrangement may be permitted to factories having more than 500 workmen. When the factory hospital has less than 5 beds the physician need not reside at the factory, but must live not more than 7 versts (4.7 miles) from it, and must visit it at least three times a week, while the hospital must have a resident *'feldsher." When the factory has no hospital of its own, and the distance to the hospital with which such arrangements have been made is more than 3 versts (2 miles), the factory must liave an emergency room with all necessary appliances for first aid to sick or injured, and, if the number of workmen exceeds 200, also a ''feld- sher." Artisans' shops employing no more than 16 workmen are not subject to any of these requirements. In factories employing more than 500 workmen the hospital is required to consist of three divi- sions — a general ward, a contagious ward with faciUtios for isolation when necessary, and a dispensary for outside patients. Where both men and women are employed there must be separate rooms for each sex in both the general ward and the contagious ward. The rooms must contain a minimum air capacity of 3 cubic sazhens (1,029 cubic feet) per each bed; there must also be warm privies. In factories employing from 200 to 500 workmen the hospital must contain at least four rooms — two wards, an examination room, and a waiting room for outside patients. In factories employing less than 200 workmen at least two rooms are required, one for thti beds and one for the outdoor patients. Where 200 or more women are employed, a special maternity room must be provided and also the services of a resident trained midwife; where less than 200 women are employed, such room and the services of a midwife must be furnished by the employer when necessary. Information must be furnished the factory commission in regard to the exact measures taken for com- phance with these regulations. REGULATIONS OF OTHER LOCALITIES. The above regulations of the ^loscow commission have bet^n quoted as a type. Considerable variations of greater or less importance are found in other districts. Quite uniformly establishments with no more than 16 workmen are excepted, while the regidations quoted require that hospital facihties, either in factory hospitals or other hospitals by arrangement, shall be furnished by all factories above that size; others except factories with less than 100 and in some cases CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2211 less than 50 workmen, requiring for these smaUer factories only dispen- sary treatment or treatment at the homes of the employees. In some districts all factories, no matter how large, are permitted to substitute arrangements with zemstvo or other hospitals for estab- hshment of factory hospitals; such permissions are more readily granted in cities than in rural districts. About one-half of the com- missions, while waiving the demands for factory hospitals altogether or permitting joint factory hospitals or arrangements with other hospitals, nevertheless require emergency wards, under certain var>Hng conditions, such as distance to the nearest hospital or physician, number of employees, or presence of dangerous machinery Onlv three commissions, those of St. Petersburg, Moscow, and Warsaw Provinces, require maternity wards in factories emploving considera- ble numbers of workers. A few commissions have^ established a maximum time limit of three months for this free medical help. In contradistinction to the requirements of the law of 1866 special municipal taxes for the purpose of supporting hospitals for wa^e- workers have been estabhshed inl6 cities, most of which are important mdustrial centers. SPECIAL TAX ON WORKMEN FOR SUPPORT OF HOSPITALS. City. St. Petersbur?? Ivanovo- Voznesensk . Kharkof Kronstadt Moscow Vladivostolc Odessa Rostov """ Year estab- lished. 1842 1860 1869 1881 1890 1892 1892 1893 Amount of tax. $0..'>2 .39 .26 1.03 .M 1.03 .31 .52 City. Nikolaiev Warsaw Astrakhan Nakhichevan.. Baf ooni Akennan Khabarovsk Blagovechensk. Year estab- lished. 1894 1894 1896 1896 1898 1899 1899 1899 Amount of tax. fO.52 .52 .52 .52 .52 .31 («) («) o For males $1.03, for females $0.52. The tax in St. Petersburg and Ivanovo-Vosnesensk had been intro- duced before the law of 1866 was promulgated. In the other cities tlie special tax for hospital purposes was introduced, although it evidently unposed a duty upon the workmen, which according to the law of 1866 devolved upon the employers. The tax in St. Perers- burg diffei-s from that in all other cities enumerated in that it applies !!l] ^fK^^'?T?^'' construction workers, unskilled laborei-s (so- called black laborers in Russia), drivers, in short, to practically ail wage-earners except factory workers, and so it does not come in conflict with the legislation in regard to factory hospitals. In the otner cities all wage-earners are included, and in some cases other groups of persons of approximately the same economic status, such as peddlers, teamsters, etc. The law establishing the tax in Ivanovo- Vosnesensk permits the employer to pay the tax for his employees, 2212 EEPOET OF THE COMMISSIONER OF LABOR. but does not require him to do it. In view of the law 5 295,8:<9 669, 6.U 9.67 29.70 59.50 89.64 96.(16 96.88 Total.... 19,292 3,488 18.06 14,247 5,439 38.181,4.53.9251,017,309 69.97 1.818,639 1,528,610 84.05 Thus, of the small factories with fifteen workmen c»r less only 8.58 per cent in 1907 furnished medical aid, while of the factories with over 500 employees over 95 per cent had some medical facilities. In these large factories provisions were usually satisfactory even at the time of the eariier investigation in 1897. The development of the last ten years manifested itself largely in the middle-sized facto- ries employing from 16 to 100 workmen, as the number of such factories giving medical aid increased from 1,556 in 1897 to 2 651 in 1907. Altogether, over 30 per cent of the workmen were left without any medical assistance in 1897 and 16 per cent in 1907, although it is prescribed by the law for all factories. This may be partly explained by the small size of some establishments. Thus out of 8,808 estab- lishments providing no medical assistance at all in 1907, 8,519, or 96.7 per cent, employed 100 workmen or less, 7,664, or 87 per cent, 50 workmen or less. Of all the 290,029 workmen deprived of meclical assistance, 209,304, or 72.7 per cent, worked in factories employing 100 persons or less, 150,798, or 52 per cent, in factories employing 50 persons or less. Nevertheless, this is not the only explanation, for of the factories employing over 100 persons each, 289, with 70,728 wage- workers, were not providing any assistance. The proportion of workers receiving some assistance varied considerably in different provinces. At the time of the first investigation (1898) 60 provinces had an organized system of factory inspection, but only 18 had issued CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2215 regulations in regard to medical aid. Only 10 provinces had such regulations before 1896, and in these 10 provinces the organization of medical aid was very much superior to the rest of the country. At present 35 provinces have such regulations («) and the general situation has accordingly improved considerably. Method of Providing Medical Aid.— The methods of providing medical aid, and consequently its quality, were subject to great variations. The tables enumerate the main classes. These were the separate factory hospital, either for one factory or supported by several factories; factory emergency wards, either separately or cooperatively supported; factory dispensaries; and arrangements with other pubhc and private agencies. The com- parative value of the separate medical institutions declines in the order named. Only hospitals provide full medical aid and care, emer- gency wards doing very little hospital treatment, and dispensaries treating exclusively ambulatory cases; i. e., cases of slight illness, usually not accompanied with disability. Arrangements with zemstvos and with other hospitals were often satisfactory. In addition, 675 factories, mostly of the smaller class, with 43,766 workmen, provided some form of medical aid in 1907 by employing a physician or a nurse, but this aid was of such unsatisfactory nature that in the official reports this service is described as almost wortldess. Taking the establishment as a basis, the most frequent method of rendering this medical aid was by dispensaries, which in 1897 existed in 42 per cent of all establishments furnishing medical aid and in 1907 in 54 per cent; next followed factory hospitals and emergency wards. But as far as the number of workmen ])rovided for is concerned, the factory hospital is the most important institution, as over one-half of the workmen had factory hospital facilities at their disposal. Independent hospitals, emergency wards, and dispensaries made the largest gains within the decade which elapsed between the two inves- tigations, the number of workmen thus protected increasing from 910,546 to 1,382,923. Agreements with zemstvos, municipaHties, red cross societies, or other hospitals for treatment of the factory workers, while permitted, are few and do not show any tendency to increase. The quality of the medical assistance declines with the size of the factory establishments. In the larger factories the hospital predomi- nates. Of the factories with 1,000 employees or over, 69.23 per cent have separate hospitals; of those with 501 to 1,000 employees, 49.88 per cent have hospitals; and so on in a rapidly dechning scale. The greatest proportion of emergency wards was found in the factories with 501 to 1,000 work men, 12.59 per cent, though they were also « Mikulin, Fabrichnaia inspektzia v Rossii, p. 171. 67725°— VOL 2—11 4G 2216 REPORT OF THE COMMISSIONER OF LABOR. frequent in the next higher and lower classes. Dispensaries predomi- nated in the factories employing less than 500 workmen. Altogether 900,000 workmen, or over 50 per cent, in 1907 had hospital facihties at their disposal, either in an inde]>endent factory hospital or by agreement with some other hospital, as against 580,000, or 40 per cent, in 1897, while dispensary treatment only (including emergency wards) was provided for 584,000, or 32 per cent, in 1907, as against 397,000, or 27 per cent, in 1897. It must be added that usually, when hospital or dispensary facilities are available at the hospital, the members of the workmen's families are given the privilege of free medical treatment on equal terms with the employees themselves. In 1897 the number of i)ersons granted this privilege was 189,401, and of these about one-half belonged to factories with over 100 workmen. Similar data for 1907 are not available. The two tables following show, by size of establisliment, the number and per cent of factories and of employees provided with the various means of medical assistance: NUMBER AND PER CENT OF FACTORIES SI EJECT TO INSPECTION PROVIDING MEDICAL AID, BY FORM OF AID AND SIZE OF ESTABLISHMENT, 1907. [Source: Viestnik Finansov, 1910, No. 5.] NUMBER. Form of aid. Hospitals Emergencj' wards Dispensaries Agreement with zeinstvos, etc Independent, unsatisfactory facilities. Total No provision Grand total. Factories employing— 15 per- sons and under. 22 2 187 41 74 326 3,473 3,799 16 to 50 persons. 134 36 881 148 308 1,507 4,191 5,698 51 to 100 persons. 100 51 703 110 180 1,144 855 1,999 101 to 600 per- sons. 287 171 995 199 112 1,764 259 2,023 Wl to 1,000 persons. 214 54 118 29 415 14 429 Over 1,000 persons. 207 13 48 14 1 283 16 299 Total factories. 964 327 2,932 541 675 5,439 8,808 14,247 PER CENT. Hospitals Emergency wards Dispensaries Agreement with zemstvos,etc Independent, unsatisfactory facilities. Total No provision Grand total. 0.58 ' .05 4.92 1.08 1.95 2.35 .63 15.46 2. GO 5.41 5.00 2.55 35.17 5.50 9.01 14.19 8.45 49.18 9.84 5.54 49.88 12.59 27.51 6.76 69.23 4.35 16.05 4.68 .34 8.58 91.42 26.45 73. 55 42.77 57.23 87.20 12.80 %.74 3.26 94. 6.5 5.35 100.00 100.00 100.00 100.00 lUO.OO 100.00 6.77 2.29 20.58 3.80 4.74 38.18 61. 82 100.00 CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2217 NUMBER AND PER CENT OF EMPLOYEES IN FACTORIES SUBJECT TO INSPECTION PROVIDED WITH MEDICAL AID, BY FORM OF AID AND SIZE OF ESTABLISHMENT, 1907. [Source: Viestaik Finansov, 1910, No. 5.] NUMBER. Form of aid. Hospitals Emergency wards Dispensaries Agreements with zemstvos Agreements with municipalities Agreements with Red Cross Agreements with other hospitals Independent, unsatisfactory facilities. , Total.. No provision. Employees in factories employing— 15 per- sons and under. 251 22 1,976 374 28 9 24 818 3,502 33,099 Grand total 36, 601 16 to 50 persons. 4,393 1,259 29,314 2,771 366 245 1.392 9,987 49, 727 117,689 167,416 51 to 100 jiersons 7,418 4.057 53,014 4,681 753 1.011 1,932 13,110 85,976 38,516 144,492 101 to 500 persons. 94,114 50,942 213,961 20,203 1,739 15,255 8.915 18.796 423.925 48,976 472,901 501 to 1,000 persons. 153, 127 42,727 80,200 8.726 522 5.779 4,758 295.839 10.200 306,039 Over 1,000 persons. Total employ- ees. 538.976 24.086 83.086 7.195 3.050 7,553 4.630 1,055 798.279 123.093 461.551 43.950 6.458 29.852 21.651 43,776 669,631 21.549 1,528.610 290.029 601.180 1,818,639 PER CENT. Hospitals Emergency wards Dispensaries '..'.'.'.'.. Agreements with zemst vos, etc. ........ Independent, unsatisfactory facilities... Total,. No provision . Grand total. 0.69 .06 5.40 1.19 2.23 9.57 90.43 100.00 2.62 .75 17.51 2.86 5.96 5.13 2.81 36.69 5.80 9.07 29.70 70.30 100.00 59.50 40.50 19.90 10.77 45.24 9.76 3.97 89.64 10.36 100.00 100.00 50.03 13.96 26.21 6.46 96.66 3.34 100.00 77.98 3.49 12.02 3.24 .15 96.88 3.12 100.00 4.3.89 O. I I 25.38 5.60 2.41 84.05 15.95 100.09 Cost of Medical Aid.— In the official reports from which these data are taken, the cost of medical assistance is also given. The cost IS quite considerable and is increasing. It increased from $2,048,069 in 1897 to $4,874,052 in 1907, or more than doubled in ten years, the per capita cost increasing from $2.01 to $3.19. This per capita cost is fairly uniform for establishments of different size, but tliis uniformity is brought about by the smaller estabhshments substi- tuting less satisfactory and consequently cheaper forms of medical assistance, namely, emergency wards and dispensaries for hospitals. The difference in the per capita cost for different forms of medical assistance is much greater. Arrangements with Red Cross hospitals showed an average cost of $3.81 per capita, in factory hospitals the average cost was $3.58, in emergency wards $2.70, and in dispen- saries $2.95, while arrangements with zemstvos and municipalities were cheaper. 2218 REPORT OF THE COMMISSIONER OF LABOR. The total and per capita cost of medical aid to the factories subject to inspection are shown by form of aid and by size of establishment in the tabh following: TOTAL AND PER CAPITA COST OF PROVIDING MEDICAL AID TO EMPLOYEES OF FACTORIES SUBJECT TO INSPECTION , BY FORM OF AID AND SIZE OF ESTAB- LISHMENT, 1907. [Source: Viestnik Finansov, 1910, No. 5.] TOTAIi COST. Form of aid. Cost ia factories employing— 15 per- sons and under. Hospitals Emergency wards Dispensaries Agreements with zemstvos Agreements with municipalities Agreements with Red Cross Agreements with other hospitals Independent, imsatisfactory facilities . Total $6.58 77 7,543 446 71 164 154 2,943 12,056 16 to 50 per- sons. $13,692 5,159 103.942 4,255 397 607 5,506 24, 123 157, 681 51 to 100 per- sons. |;J9, 106 19,612 160, 896 8,984 702 3, 112 4,695 21,066 258, 173 101 to 500 persons. $408,818 158,184 600,990 32,842 4.014 56,964 2.3,189 22,492 1,307,493 501 to 1,000 persons. $537, 702 94,818 216, 490 15, 372 1,185 23,265 11,789 900,611 Over 1,000 persons. $1,858,592 64,616 270, 164 11,732 3,951 29,555 8,756 672 2,238,038 Total. $2,858,568 332, 466 1,360.025 73,631 10,320 113.657 54,089 71,296 4,874,052 PER CAPITA COST. Hospitals Emergency wards Dispensaries Agreements with zemstvos Agreements with municipalities Agreements with Red Cross Agreements with other hospitals Independent, unsatisfactory facilities. Average $2.62 $3.12 $5. 27 $4.34 $3. fd $3.45 3.50 4.10 4.83 3.11 2.22 2.27 3.82 3.55 3.03 2.81 2.70 3.25 1.19 1.54 1.92 1.63 1.76 1.63 2.54 1.08 .93 2.31 2.27 1.30 18.22 2.48 3.08 3.73 4.02 3.91 6.42 3.96 2.43 2.60 2.48 1.89 3.60 2.42 1.61 1.20 .64 3.44 3.17 3.00 3.08 3.04 3.34 $3.58 2.70 2.95 1.68 1.60 3.81 2.50 1.63 3.19 MEDICAL AID IN MINING AND METALLURGICAL INDUSTRIES. The situation is somewhat more favorable in the mining and the metallurgical industries, both as regards legislation and the actual practice. Originally the Government controlled a large share of these industries and it took better care of its employees. On the other hand, the isolated position of the mining and metallurgical establishments, together with the greater frequency of accidents and diseases, makes the necessity of systematic medical aid more pressing. B}^ the Mining Code of 1806 each government mining or metallurgical establishment with ovar 200 workers was required to have a hospital and a physician, and another article of the same code required private establishments to comply with tlie same reciuire- ments as regards medical assistance. The temporary law of 1866 did not apply specifically to mining and metallurgy, but the law of June 3, 1886, conferred upon the factory commissions, among other functions, the right to issue regulations concerning the care of the health and life of the workmen, and by the extension of this law to CHAPTEE IX. — workmen's INSURANCE IN RUSSIA. 2219 the mining and metallurgical establishments on March 9, 1892, the same rights were given to the mining commissions established in the principal mining regions. In conformance with this law, the mining commissions passed regulations concerning the organizations of medical aid on the following dates: (1) The central mining commission (the northern, northwestern, Volga, and Moscow mining territories) on April 9, 1893. (2) The Ural mining commission on July 31, 1896, and amended August 9, 1897. (3) The western mining commission on April 6, 1896. (4) The south Russia mining commission on May 18, 1893. (5) Southeastern mining commission on November 18, 1898. (6) Caucasus mining commission on March 12, 1897, amended July 17, 1897. (7) Wastern Siberia mining commission on December 15, 1900. (8) Eastern Siberia mining commission on May 3, 1899. While the special mining commissions in European Russia were abolished by the law of June 7, 1899, the regulations remained in force. There are considerable differences between the regulations of dif- ferent mming commissions, but those adopted by the Ural commis- sion may be taken as a type; both because the Ural mining territory claims nearly 150,000 out of a total of 480,000 persons employed in mining, or nearly one-third, and also because the regulations of the central commission, with 30,000 employees under its jurisdiction, of the western commission, with 42,000 employees, and of the Caucasus commission, with 43,000, are very similar to those of the Ural com- mission. Thus these rules apply to about 265,000 workers, or over 55 per cent of those employed in mining. These regulations of the Ural commission are as follows : All pri- vate mining and metallurgical establishments are required to furnish medical aid to their employees free of charge according to the following conditions: Establishments employing less than 100 workers and located withm the distance of 15 to 25 verets (10 to 17 miles) from a hospital may furnish only an emergency room without permanent beds. The establishment employing from 100 to 400 workers must have a permanent hospital ward with not less than one bed for each 100 workers, and a permanent '^feldsher" (medical assistant), and must call a physician whenever necessary. Establishments employ- mg over 400 workers must have a hospital with a private pharmacy, not less than one bed for each 100 workers employed, a permanent physician, and the necessary number of '' feldshers." While no such hospital facihties are required of the smaller establishments, they must make arrangements with hospitals in the vicinity for such sick employees as require hospital treatment. Owners of establishments 2220 REPORT OF THE COMMISSIONER OF LABOR. located near each other may enter into agreements for the establish- ment of common hospitals. Each mining and metallurgical establishment must be provided with the necessary medical and surgical appliances for giving first aid to persons injured or suddenly taken ill, and also with convey- ances for transportation of such patients to the iiearest hosi)itals. In addition the very large establishments, employing over 1,000 persons, must organize a permanent emergency service for first aid to the injured and sick. New hospital buildings must be erected with due regard to the demands of hygiene. They must be located in a dry place at some distance from dwellings and such shop buildings as would unfavor- ably influence the course of treatment, and be provided with good drinking water. The hospitals must be well lighted, ventilated, and heated. The wards must contain at least 5 cubic sazhen (1,715 cubic feet) of air space, 1 square sazhen (49 square feet) of floor space, and one-sixth square sazhen (over 8 square feet) of window space, per bed. The ceiling must be at least 14 feet high. Each hospital must be provided with a reception ward, a bathroom, an operating room, a morgue, rooms for the ''feldshers" and servants, a kitchen, a laundry, a bath house, and similar accessories. The dispensaiy must be separate from the hospital w ards. All toilet rooms must be heated, have proper ventilation, and be in the same building with the hospital. Eveiy hospital must be provided witli a special room for contagious diseases, permitting perfect isolation when neccHsary. This contagious ward must have its own bathroom and toilet facili- ties. There must also be a special room for preparation and distribu- tion of drugs, and a room for disinfection of clothing and dressings. Statistics for 1904. — A special investigation of the conditions obtaining under these regulations was made through the mining inspectors in 1904. The main results of tliis investigation are shown in the following summary statement, where data for European and Asiatic Russia are shown separately: SUMMARY OF MEDICAL AID IN THE MININCJ AND METALLl-RGICAL ESTABLISH- MENTS, IWH. [Source: Tigranov, G. Th, i Gussiatnikov. Vrachebnaya pomoshch rabochim na gomykhzavordakh, 1907.) Item. Number of establishments Nmnber of employees Numl>er of hospitals Number of beds in hospitals Emergency rooms and dispensaries Beds in emergency rooms and dispensaries Total numl^er of beds Cost of building hospitals, etc Cost of building per l)ed Annual cost of medical aid Cost of medical aid per employee Number of workmen per bed European Asiatic Russia. Russia. 3,833 659 426,334 54,744 2i;i 126 4,244 1,025 355 170 314 322 4,55« 1,347 $2,823,731 $212, 472 |62() $158 $1,476,132 $229,348 $3.4<> $4.19 94 41 Total. 4,492 481,078 339 5,269 625 636 5,905 $3,036,203 $514 $1,705,480 13.54 n CHAPTEB IX. — workmen's INSURANCE IN RUSSIA. 2221 The investigation disclosed 339 hospitals with 525 hospital wards and 5,905 beds, built at the cost of $3,036,203, or $514 per bed. This was an average of one hospital bed for 81 employees, which shows compUance with the requirements of the regulations. The total cost of medical aid was $1,705,480, while the average cost per employee was $3.54, or 10 per cent more than in the factories. The detail statistics of this report for 1904 were prepared in har- mony with the investigations of the factories for 1897 and 1907, thus permitting many comparisons. The tables show the organization of medical aid, by size of establishments, both for the number of estab- lishments and employees. The detailed data quoted refer only to European Russia, including the entire Caucasus; but are exclusive of Asiatic Russia, for which the information is too fragmentary for detailed analysis. Combinations for the establishment of hospitals are more popular in the mming industry than in the factories, 1,011 establishments, or over one-fourth, furnishing medical aid in that way. Next in popu- larity are agreements with the zemstvos, while independent hospi- tals are much less frequent. Altogether less than three-fifths of the establishments were f ur- nishmg organized medical aid, nearly three-tenths providing their own hospital facilities, nearly two-tenths havmg agreements with various hospitals, and less than one-tenth having various substitutes for hospital treatment. The establishments making no systematic arrangement for medical aid almost^all belonged to the small type, 1,417 of the 1,568 employing 15 workers or less and 143 from 16 to 100 workers. One estabUshment with 1,623 employees is reported as having no systematic medical aid, but in reahty this comprises all the small gold-minmg enterprises of a district where the actual number of establishments was not ascertained. As would be ex- pected from the regulations, the separate hospitals are most frequent among the large establishments, and emergency wards and coopera- tive hospitals among the small establishments. 2222 REPORT OF THE COMMISSIONER OF LABOR. NUMBER AND PER CENT OF MINING AND METALLURGICAL ESTABLISHMENTS PRO- VIDING MEDICAL AID, BY FORM OF AID AND SIZE OF ESTABLISHMENT. 1904. [Source: Tigranov, G. Th, i Gussiatnikov. Vrachebnaya pomoshch rabochim aa gornykh zavodakh, 1907.] NUMBKa. Establishments employing— Total Form of aid. 15 per- sons and under. 16 to 100 persons. 101 to 500 persons. 501 to 1.000 per- sons. Over 1,000 persons. estab- lish- ments. Separate hospitals 1 380 6 r 1 3 240 106 8 337 44 71 6 29 308 17 2 21 29 194 64 24 10 17 5 3 1 13 25 36 8 1 2 2 1 61 45 124 1,011 11 Hospitals of several establishments combined. Separate emergency wards Emergency wards of several establishments com- bined i 1 2 133 20 Separate dispensaries Dispensaries of several establishments combined . Agreements with zemstvos 52 Agreements with municipalities 128 Agreements with Red Cross 3 Agreements with other hospitals 8 3 45 Total 802 1,417 53 2, 272 843 143 17 360 7 2 78 110 1 2,193 1,5€8 72 No organized medical aid Not reported Grand total 1,003 369 78 111 3,833 PEE CENT. Hospitals Emergency wards Dispensaries Agreements with zemstvos, etc Total No organized medical aid . Not reported Grand total . 17.60 .18 15.67 35. .30 62, 37 2. 3.i 100.00 34 40 11.46 3.49 34.70 60.43 23.85 7.32 5.96 84.05 14.26 1.69 100.00 97.56 1.90 .54 100.00 78.20 11.54 5.13 5.13 100.00 100.00 95.50 "i'.'m 1.80 99.10 .90 100.00 29.61 6.62 1.88 19.10 57.21 40.91 1.88 100.00 The actual situation is more favorable to the employees than the preceding table would indicate. It appears from the following; table that 78.92 per cent have the benefit of either inde])endent or cooper- ative establishment hospitals, 6.46 per cent more ani treated hi other hospitals by agreement, and nearly 10 per cent may go to either emergency wards or dispensaries, most of these having als<^ the right to treatment in near-by hospitals when such treatment is necessary, so that altogether about 20,000 workers, or less than 5 per cent of the employees, are not provided with medical aid. CHAPTER IX.— WORKMEN S INSURANCE IN RUSSIA. 2223 NUMBER AND PER CENT OF EMPLOYEES OF MINING AND METALLURGICAL EST\R- LISHMENTS PROVIDED WITH MEDICAL AID, BY FORM OF AID AND SIZE 'oF ESTABLISHMENT, 1904. [Source: Tigranov, G. Th, i Gussiatnikov. Vrachebnaya pomoshch rabochim na gornykh ravodakh, 1907.J NUMBER. Form of aid. Separate hospitals ; Hospitals of several establishments combined . . . Separate emergency wards Emergency wards of several establishments com- bined , Separate dispensaries Dispensaries of several establishments com bined '. Agreements with zemstvos Agreements with municipalities Agreements with Red Cross Agreements with other hospitals ] . Total No organized medical aid . Not reported Grand total. Employees in establishments employing— 15 per- sons and under. 10 2,829 49 322 12 32 2,500 769 63 6,586 11,405 620 18,611 16 to 100 l)ersons. 515 14, 172 2,617 2.897 295 1.350 11,106 708 39 1.251 101 to 500 persons. 501 to 1,000 I)eraons. 8.364 42,700 13,611 3,667 2,506 3,432 1,022 494 150 2,985 16.515 23,570 3,944 796 1,192 1,510 590 2,128 34,950 5,848 614 78,931 1,227 264 41,412 80,422 60,245 50,245 Over 1.000 persons. 144.206 83,567 1,200 1,303 3,745 234.021 1,623 235,644 Total employ- ees. 169.610 166.838 20,221 7.682 5.205 7.627 18.963 1,971 189 6.427 404,733 20,103 1.498 426,334 PER CENT. Hospitals Emergency wards Dispensaries Agreements with zemstvos, etc. Total No organized medical aid . Not reported Grand total. 15.26 1.99 .24 17.90 35.39 61.28 3.33 100.00 35.47 13.32 3.97 31.64 84.40 14.12 1.48 63.50 21.48 7.38 5.78 79.78 9.43 5.38 5.41 96.66 1.06 1.59 )8.14 1.53 .33 100 00 100.00 100.00 99.31 .69 100. 00 I 100. 00 78.92 6.54 3.01 6.46 94.93 4.72 .36 100.00 The total annual cost and the per capita cost are shown in the next table. Agreements with zemstvos seem the cheapest way to provide medical help, while independent hospitals are the costliest. The per capita cost of these hospitals decreases with the increase in the size of the establishment. For the smaller establishments a coopera- tive hospital is very much cheaper than an independent one, but tliis •difference declines with the increase in the size of the estabhshments. The data of the table do not give the correct total of the expendi- tures of the minmg and metallurgical industry for medical help to the workers, because over 40,000 employees provided only with emergency rooms or dispensaries at the establishment, receive in addition, when necessary, hospital treatment at some hospital in the vicinity at the expense of the employer. 2224 REPOET OF THE COMMISSIONER OF LABOR. TOTAL AND PER CAPITA COST OF PROVIDING MEDICAL AID TO EMPLOYEES OF MINING AND METALLURGICAL ESTABLISHMENTS, BY FORM OF AID AND SIZE OF ESTABLISHMENTS, 1904. [Source: Tigranov, G. Th, i Gussiatnikov, Vrachebnayii pomoshch rabochim na gomykh zavoersons. $87,176 66,796 7,669 2,553 2,610 4,929 («) 536 176,269 Over 1,000 persons. $572,099 294, 198 4,606 4,679 301 b 879, 548 TotaL $718,688 619,437 64,790 9,794 20,805 24,702 4,490 1,754 234 4,795 3,036 6 1,476,132 PER CAPITA COST. Separate hospitals Hospitals of several establishments combined. Separate emergency wards Emergency wards of several establishments combined Separate dispensaries Dispensaries of several establishments com- bined Agreements with zemstvos Agreements with municipalities Agreements with Red Cross Agreements with other institutions No organized medical aid Average, (a) $4.86 2.63 1.17 3.40 1.40 .24 .07 .24 .12 ,84 $9.87 3.63 5.50 .44 4.91 3.38 .26 1.87 1.06 1.16 .29 2.08 $6.49 4.45 3.13 1.52 4.28 3.05 .65 .77 1.29 .94 .16 15.27 2.96 1.94 3.20 3.03 3.26 .25 $3.97 3.52 3.84 3.57 .10 3.96 3.51 $4.21 3.71 3.20 1.27 4.00 3.24 .24 .80 1.24 .75 .15 3.73 3.46 o Not reported. fc This total is not the correct sum of the items; the figures are given as shown in the original report. MEDICAL AID TO RAILROAD EMPLOYEES. Of all industrial employees, those employed by the railroads are best provided with medical aid. The State as W(^ll as private rail- roads support a large number of hospitals and emergency wards, in which not only the employees themselves but the members of their families receive gratuitous medical and surgical aid. In the follow- ing statement are given the main data concerning these medical facili- ties of the railroads for 1902 and H)07, indicating their rapid growth within the five years in which the mileage has in(;ieased from 35,655 to 40,197 miles, or less than 13 per cent. CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2225 MEDICAL STAFF AND HOSPITAL FACILITIES PROVIDED FOR RAILROAD EMPLOYEES 1902 AND 1907. * [Source: Ministerstvo Putei Soobshchenia. Otdiel zheleznykh dorog. Otchot o vrachebno-sanitamom soetoianii zheleznykh dorog, 1902, 1907.] Medical staff. Hospital facilities. Year. Physi- cians. Drug- gists. Med- ical as- sistants, mid- wives, etc. Other em- ployees. Total. Hos- pitals. Emer- gency wards. Beds. In hos- pitals. In emer- gency wards. Total. 1902 642 891 56 88 1,741 2,406 1.672 2,399 4,111 5,784 74 114 694 849 2,234 3,688 1.362 1,583 1907 3.696 5,271 As is shown in the table followdng, the number of persons entitled to the medical aid increased from 1,802,237 in 1901 to 2,794,795 in 1907, and the members of the famihes constituted nearly 2,000,000, or over 71 per cent of the entire ntimber. The cost of this medical aid nearly doubled within this period, while the average cost per person entitled to treatment increased from $1.63 to $1.98, and the average cost per person employed increased from $3.76 to $4.86. NUMBER OF RAILROAD EMPLOYEES AND OF MEMBERS OF THEIR F'V.MILIES \ND EXPENDITURES FOR MEDICAL AID. 1901 TO 1907. [Source: Ministerstvo Putei Soobshchenia. Otdiel zheleznykh dorog. Otchot o vrachebno-sanitamom sostoianu zheleznykh dorog, 1902-1907.J Year. Number of em- ployees. 1901 545.554 628.021 662. 5C7 726.825 709,531 763.425 808,444 1902 1903 1904 1905 19(KJ.... 1907 Members of families. 1,256,683 1,400,134 1,523,817 1,635,068 1,761.276 1,883,828 1,986,351 Total en- titled to aid. 1,802,237 2,028,155 2,18(),384 2,361,923 2,470,807 2.647,253 2,794,795 Expenditures for medical aid. Per per- son en- titled to aid. Per Total. em- ployee. $2,050,350 $3.76 2.372.844 3.78 2.517,453 3.80 2. (••98.066 3.71 2.900.808 4.09 3,4.50.496 4.52 3,935.586 4.86 $1.63 1.60 1.65 1.65 1.65 1.83 1.98 2226 REPORT OF THE COMMISSIONER OF LABOR. The main items of expenditures are shown in the table following. Nearly one-half of the expenditure is for salaries and traveling ex- penses of the medical staff, and the bulk of the other half for medical and surgical supplies and the cost of keeping the patients in the rail- road hospitals or in other hospitals: EXPENDITURES OF RAILROADS FOR MEDICAL AID TO EMPLOYEES AND MEMBERS OF THEIR FAMILIES, 1901 TO 1907. ISource: Ministerstvo Putei Soobshchenia. Otdiel z.heleznykh dorop. C>t<-hot o vrachebno-sanitamom sostoianii zhelezni kti dorog, 1902-1907.] Year. 1901 1902 1903 1904 1905 1906 1907 Salaries, traveling expenses, etc. 11,117,879 1,291,053 1,358,197 1,404,512 1,478,075 1,667.729 1,914,440 Rent, heat, light, cleaning, and re- pairs. 1242.321 269,795 286,863 307,327 339.793 388,233 431,608 Furni- ture, etc. MedicaL^®*P"*S -^--ifnTar S^ef!l"P-|riadhos- $55,614 77.067 66,623 83,706 91,801 107,056 111,894 piles. $302,973 32;<.079 3«i(t.069 359, 724 397.010 634,319 582, .501 pitals. $129,100 144,471 153,705 185,536 252,268 292,787 311,245 Keeping patients in other hos- pitals. Funeral All other! ex- expeiidi-' Total. (a) ,$155,392 176,436 207,416 223,649 255,205 374,99*^ 397, 19ti penses. $18,367 34,131 33,905 33. 3<* 50. 4i.k^ 41,9t^7 48, 0«) tureg. $19,074 55,106 50,6'.!4 100,244 62,001 43,4^8 138,743 $2,050,350 2,372,844 2, .517, 453 2,698,066 2,900,808 3.450,496 3,935,586 a For most of the years the totals are slightly different from the sum of the Items; the figur<'S are given as shown in the original reports. The extent to which the employees utilize these medical facilities is shown in the next table. There were 229.0 cases for each 100 employees in 1901 and 279 per each 100 employees in 1907, an increase of 2 1 .5 per cent in six years. The members of the families do not apply for medical aid as frequently, but here, too, the increase was from 107.5 per 100 in 1901 to 130.9 in 1907, or 21.8 per cent. As the num- ber of members of families exceeds that of employees by nearly 150 per cent, the actual treatment given to them was greater than to the employees, notwithstanding the very much liigh<;r sickness rate of the former. Altogether nearly 5,000,000 cases of illness are being treated by the railroads' medical staff. NUMBER OF EMPLOYEES OF RAILROADS AND MEMBERS OF THEIR FAMILIES TREATED BY THE RAILROAD MEDICAL STAFF, 1901 TO 1907. [Source: Ministerstvo Putei Soobshchenia. Otdiel zheleznykh dorog. Otchot o vrachebno-sanitamom sostoianii zheleznykh dorog, 1902-1907.] Employees. Members of families. Total. Yesir. Number. Cases treated. Number. Cases treated. Number. Caaes treated. Total. Per 100 em- ployees Total. Per 100 mem- bers. Total. Per 100 per- sons. 1901 1902 1903 1904 1905 1906 1907 545,554 628.021 662,567 726,825 709,531 763,425 808,444 1.252,520 1,383,765 1,492,527 1,568,755 1,757,581 2,074,901 2,255,763 229.6 220.3 225.3 215.8 247.7 271.8 279.0 1,256,683 1,400,134 1,523.817 1,635 Of 8 1,761.276 1,883.828 1,986,351 1,351.036 1.552,615 1,704,896 1,851,658 1,975.076 2,293.743 2,599,854 107.5 110.9 111.9 113.2 112.1 121.8 130.9 1,802.237 2.028,155 2,186,384 2.361,923 2,470.807 2.647,2.'j3 2,794,796 2,60;i.556 2,93<.,380 3,197,423 3,420,413 3,732,657 4.368,644 4,85.S618 144.5 144.8 1^.2 144.8 15L1 165.0 173.7 CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2227 PROPOSED REFORMS. The foregoing statistical data show that in manufactures, minino- and railroads the employers expended in 1907 nearly $12,000,000 in furnishing medical aid to some 2,750,000 employees and their families; but nevertheless the system is not considered satisfactory. The shortcomings of the system of medical aid to workers in private establishments, as established by the temporary rules of 1866 and the later fragmentary legislation, were disclosed in the report of the fac- tory inspector above quoted, and since the beginning of the present century a plan for a comprehensive law has been under preparation in the Ministry of Finance. A draft of this plan was made public in 1903, and referred for criticism to the Ministries of Justice, Agricul- ture, Interior, and Ways of Communication. A later draft embody- ing the changes suggested by these ministries was made public in 1905. The proposal at that time seemed very near becoming a law, but action on it was postponed for the consideration of the newly established Duma, in connection with the intended complete revi- sion of the entire labor legislation. The plan was again under discus- sion in connection with the problem of labor insurance in the sprmg of 1908, but no action has as yet been taken. This proposed law establishes the principle that workmen employed in factories, mills, mines, and metallurgical establishments privately owned must be furnished medical aid at the expense of the employer. The earlier draft included the private railroad shops, but it was pointed out by the minister of ways of communication that all railroad em- ployees had been provided for, under more favorable conditions, since 1893. This medical aid may include first aid to the injured or those suddenly taken ill, medical advice, medicine, dressings and similar ap- phances in ambulatory cases, medical attendance in confinements, full hospital treatment and subsistence in cases requiring confinement in bed, cr in exceptional cases, treatment, medicines, etc., but without subsistence, when the patient prefers to remain at home, with the per- mission of the attending physician. When the nature of sickness is such as to cause disability to work, such medical aid must be given until recovery, but not longer than three months, though in excep- tional cases this limit may be extended to six months. In these cases the duration of treatment does not depend upon the employ- ment contract. In cases which do not cause disabihty the employer is required to furnish treatment only up to the expiration of the employment contract. To meet the requirements of this plan, the employer may establish and support hospitals and dispensaries independently or in conjunc- tion with other employers of labor, and in such cases the medical institutions of the factory must satisfy in every particular the stand- 2228 REPORT OF THE COMMISSIONER OF LABOR. arcl requirements to be published by tbe medical council of the Min- istry of Interior, or he may enter into agreement with municipal authorities or the zemstvo to furnish this aid in their medical insti- tutions for compensation. It was the intention of the legislative plan to encourage such agreements, and it provided, therefore, that when the employer desired to enter into such an agreement public institu- tions could not decline to accept it. For such services the employer could be required to pay the municipality or zemstvo annual com- pensation for the current cost, as well as a lump sum for the organi- zation of the necessary hospital facilities, the rates of compensation to be fixed by the municipality or zemstvo under approval of the civil authorities and the factory and mining commissions. Appeals against the decisions of the latter are permitted to the ministers of finance and interior, and penalties are provided for failure to carry out the demands of the law. This legislative proposal has evidently abandoned the specific demands of the old temporary law of 1866 as to the number of beds, and left tlie elaboration of all practical details to administrative regulations. The destructive tendency of this new proposal is its effort to trans- fer the organization of medical aid from the factory to the local civil authorities, while recognizing the duty of the employer to meet the financial burden. This was the result of the many disclosures, official as well as private, that the organization of medical aid in factory hos- pitals and dispensaries was not entirely satisfactory. In an oiiicial report on this matter, published in 1905, it is frankly admitted that the law of 1866 ''forces upon the employer a function utterly foreign to him, which in the very nature of things can not be satisfactorily fulfilled." It was recognized at the same time that there were a few highly satisfactory factory hospitals, and these should not be abso- lutely prohibited. The choice between an indej)endent hospital and an agreement with existing hospitals is left with the employer; but a high standard is established for private hospitals which would require such a high cost that in the majority of cases an agreement would be considerably cheaper, and the local hospital authorities are not per- mitted to decline to enter into such agreement. Finally the argu- ment is brought forth that such agreements are preferable for the treatment of the employee's family, since by no principle can the employer be required to furnish hospital facilities for the benefit of the workmen's families, while if the local authorities will extend their hospital facilities in accordance with agreements with factory owners room will be found for the workmen's families as well. In view of the preparation of this draft of a special law for regu- lating conditions of medical aid to employees of the manufacturing, metallurgical, and mining industries the draft of a general labor insur- ance law of 1 905 did no t contain, in its chapter on sickness insurance, any CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2229 reference to medical aid. When subsequently the proposal of a labor insurance law was broken up into its component parts and a special bill prepared for each branch of labor insurance, the matter of medical assistance was combined with that of sick benefits into one bill. Nevertheless the essential features of the proposal remained the same as in the drafts of 1903 and 1905. In the draft of December, 1906, presented to the Duma in June, 1908, the obligation of furnishing medical aid and that of furnishing sick benefits are still kept sepa- rately, because of the conviction that the workmen's sick benefit asso- ciations to be established in the factories and mines would not have any experience with the work of furnishing medical aid and could not be expected to cope with this important problem successfuUy. The burden of the cost of medical aid is left upon the employer. It is pro- vided, however, that the employer may transfer this duty to the sick- benefit fund by mutual agreement, in addition to the option of making siniilar agreements with other employers or pubhc hospitals in the vicinity. Where no such agreement exists, the wage-worker obtains the right to receive treatment in the hospitals of the municipal or zemstvo authorities, and the actual cost must be borne by the em- ployer. The elaboration of the regulations and the entire administra- tion of the law is to be placed in the hands of the labor insurance council, the establishment of which is contemplated in the general scheme of labor insurance. FINANCIAL ASSISTANCE DURING SICKNESS. Much less has been accomplished for financial relief during illness of workmen than for medical aid. If the sickness requires hospital treatment, subsistence is given to the patient free, in comphance with a decision of the Ministry of Finance. By the law of 1886 subsistence was a part of the hospital treatment and the employer could not charge for it. The conditions of life of the majority of the Russian factory workers are such that serious cases requiring confinement in bed can not be satisfactorily treated at home. Only two-fifths of the factory workers had factory hospitals at their disposal. Where only dispensary treatment is furnished, and in all cases not requiring hospital treatment, no subsistence is granted ; besides, in case of hospital treatment the family of the patient is without income. The only general legislation wMch endeavoi-s to meet this situation is that referring to "fhie funds." FINE FUNDS. The imposition of fines and penalties upon emplovees is a feature of Russian industry. Before the adoption of the law of 1886 regu- lating the relations between employers and employees, fines in some 2230 EEPORT OF THE COMMISSIONER OF LABOR. establishments furnished considerable returns to the employers. This abuse was remedied by law, wliich regulated the imposition of fines and provided that the proceeds be used for the rehef of the workmen only. This and all other provisions of the law of 1886 were extended in 1892 to the mines and metaUujgical establish- ments. According to this law the manager of the mdustrial establishment may by his own authority impose fines for only three reasons: (1) For faulty work, (2) for absence without excuse, (3) for '^ disturbance of the peace and order,'^ such as tardiness, carelessness with machm- ery or with fire, lack of cleanliness, lights, quarrels, disobedience, drunkenness, gambling, or any conduct contrary to the factory rules. The fines must be imposed accordmg to a definite scale approved by the factory inspector. The actual amount of fines unposed must not exceed one-third of the wages due at pay day, but when the sum of fines unposed would exceed that lunit the manager may dismiss the employee. Against these fines the employee has no appeal, but if the factory inspector during his visit of inspection discovers cases of illegal fining, he must hold the manager resi)on- sible for it. The amount of fines collected in each establishment constitutes a special fund, which may be used only for the benefit of the employees with a special approval of the factory inspector m each case, and in conformity with the regulations to be published by the mmister of fmance in regard to the purpose and methods of such relief. Accordmg to these regulations promulgated by the mmister of finance on Decei^ber 4 (16), 1890, subsidies from these funds may be granted for the following purposes only: Permanent or temporary disabHity due to sickness; pregnancy, if work has been discontinued two weeks before childbirth; funeral expenses; sudden loss of employee's property through fije or other causes. The fund IS administered by the employer, but all sums over 100 rubles ($51 50) must be deposited with the state savings bank, and the accounts of this fund are subject to the control of the factory uispectors The factory commission may, upon its own judgment, grant the employers the right to grant subsidies not to exceed 15 rubles ($7.73) each, but this permission is subject to lecaU when the subsidies are granted extravagantly or not in conformity with the laws and regu- lations. On the other hand, the factory inspectors may giant such subsidy when the manufacturer unjustly refuses it to a needy work- man; but the manufacturer may entei- a complaint with the local factory commission against such acts of the inspector. In comparatively few factories are fines levied. While the data do not go back of 1900, even for the eight years 1900 to 1907 the number of establishments in which the collection of fines is author- ized has declined, and also the number of factories in which fines /I 1' CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2231 have actually been imposed. The percentage of establishments imposmg fines decreased from 26.8 in 1900 to 20.2 in 1907, and the percentage of workmen employed in such estabhshments decreased from 70.8 to 63.7. The decline was greatest in 1906 and 1907, imme- diately following the extraordinary wave of strikes in 1905 and 1906. But in 1908, the last year for which data are available, there has been a slight increase of fining. Fmes are most frequent in the larger establishments, for while the factories imposmg fines constituted, in 1905, 26.5 per cent of the total, the number of workmen employed in these factories con- stituted 71.5 per cent. The accumulated fine funds on January 1, 1900, amounted to $1,240,583, and by January 1, 1905, had reached $1,561,694, but since then has been declining. The income of these funds consists only of fines and mterest on the money accumulated; the other revenues are mainly due to the sale or purchase of securities. While the income from interest was gradually increasing, due to increased accumulations, the amounts collected in fines were steadily declining. On the other hand, the benefits were increasing, being in 1905 much greater than the sum of the fines. In the years 1905 to 1907 excep- tionally small amounts were collected in fines, so that the benefits granted were larger than the fines collected, and this has caused a decrease in the amount of the funds. With the reestabhshment of nor- mal industrial conditions in 1908 the amount of fines has acrain increased. ^ The following table shows the income and expenditures of these funds for 1900 to 1908: INCOME AND EXPENDITURES OF FINE FUNDS IN RUSSIAN FACTORIES, 1900 TO 1908. [Source: Ministerstvo Torgovli i Promyshlennosti. Otdiel Promyshlennosti. Svod otchotov fabrichnykh mspectorov, 1900-1908.) i^uin,iuiyKa Year. 1900 1901 1902 1903 1904.... 1905.... 1906 1907 1908 Amount of funds, (a) Income. Fines. $1,240,583 1,353,761 1,415,461 1,471,529 1,522,133 1,561,694 1,498,438 1,432,831 1,400,847 $296, 166 285,850 273,043 271,631 276,012 163,157 142, 462 160,801 222,819 Interest. Other.(J)) Total. Expenditures. $44,818 45,632 48,807 48,886 53,751 55,837 51,786 50,376 49,056 $108,097 250,910 170, 731 93,761 73,919 74,811 74.800 85,435 79, 189 $354,591 517,947 d 439, UiO 364,G(i8 379.584 366.803 332, 159 336,982 336,554 oe5iS|yifSe^hJt'^f^iS?^S^^ made in tlie oHginal repoiS ^'^''"''^ ^'" ^^ obtained. The discrepancies are due to many correctfona *> Mainly sale of securities.' d ^^!"|y P'Tfhase of securities for investment. ms total IS not the correct sum of the items; the figures ar« given as shown in the origmal report. 67725°— VOL 2—11 47 $449,081 682. 392 492.581 414,278 419, 132 293.805 269,048 296,612 351,064 Benefits. Other i Transfers exx)endi- ! to central tures. (c)j fund. $256,631 258, 752 258,203 266,184 275,977 282,824 248.354 242,730 265,142 $97,298 245.659 167,746 93,468 89.111 76,264 79,541 89,985 65,430 $662 13.536 13,365 5,016 14,496 7,715 4,264 4,267 5,982 TotaL < 2232 KEPORT OF THE COMMISSIONER OF LABOR. The causes for fines imposed are shown in the next table. The total number of cases in 1908 was L>,690,036, and the average fine smce 1905 was only 8 cents. Fmes for faulty work are most frequent, constituting in 1908, 78.7 per cent of aU cases, but the average fine is only 6 cents. The average fine for unexcused absence is much higher, bemg 22 cents in 1908; and for disorderly conduct, 14 cents. NUMBER, AMOUNT, AND AVERAGE OF FINES COLLECTED FROM FACTORY EMPLOYEES, BY CAUSES, 1908. [Source: Ministerstvo TorgovU i Promyshlennoeti. Otdiel Promyshlennosti. Svod otchotov fabrichnvkh inspectorov, 1908.] Cause of fine. Faulty work Unexcused absence Disorderly conduct All causes... Number of cases. 2,118,lfi7 337.717 234. 162 2, 690. ate Amount of fine. Total. $117,970 72, 707 32,142 222,819 Average. $0.06 .22 .14 .08 While the total amount of fines is considerable, their proportion to wages received was small, being only 13.8 cents per each $100 of wages in 1908, or 17 cents per workman. It amounted to about 20 cents per $100 of wages and 22 cents per workman before 1905, and was considerably lower during the three years 1905 to 1907. As a source of relief for the workmen, these funds are not very important. In 1908 a total of $265,142 was distributed in 92,611 payments, or $2.86 per each payment, and the cases of more than'one payment were rare. Rehef for temporary disabihty from sickness is the most important item, and this, with the sums granted for perma- nent disabihty from sickness and for pregnancy, or what may be termed for purposes of sick rehef, in 1908 was 60 per cent of the total amount distributed. This form of relief is entirely voluntary with the employer, except in cases in which a factory inspector may grant a small sum in opposi- tion to the decision of the employer. The table following shows the number, amount, and average of each kind of benefit paid out of fine funds. I CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2233 NUMBER, AMOUirr, AND AVERAGE OF BENEFITS PAID OUT OF FINE FUNDS BY KIND OF BENEFITS. 1900 TO 1908. * "' [Source: Ministerstvo Torgovli i Promyshlennosti. Otdiel Promyshlennosti. Svod otchotov fabnchnykh inspectorov, 1900-1908.] oicaotov 1 Year. Perma- nent disability due to sickness. Tempo- ' diSity „^^£ due to *^cy- sickness. Funeral expenses Loss of property • by fire. Other objects or Total, causes. 1900. Number of payments («) $48,872 $79,309 $38,000 $40,973 $28,625 $20,8.52 Total amount («) $256,631 Average i 1. 1901. Number of payments 3,613 $33, 149 31,060 $95,782 16,910 $33,632 13,^75 $42,670 4,957 $36,140 3.605 $17,379 Total amount 73.820 $258. 752 Average $9.15 $3.08 $1.99 $3.12 $7.29 $4.82 $3.51 1903. Number of payments 5,859 $39, 155 32,486 $89,575 20,744 $36,475 15,598 $45,307 Total amount 4. 671 6.670 86.028 $26,291 i $21,400 $258,203 Average $6.68 $2.76 $1.76 21,166 $35,085 $2.90 $5.63 $3.21 $3.00 1903. Number of payments. 6.520 $42. 597 35.279 $90,005 16,184 $45,341 6.174 $34,397 4.556 $18, 759 Total amount 88.899 $266,184 Average $6.53 $2.56 $1.66 $2.80 $6.65 $4.12 $2.99 1904. Number of payments. 7,014 $45, 106 34,311 $91,784 22.301 $38,189 18,174 $50,581 4.241 6.179 $25,265 $25,052 Total amount 92,878 $275,977 Average $6.43 $2.68 $1.71 $2.78 $5.96 1 $4.05 $2.97 1905. Number of payments. . . 6.575 $41,528 32,464 $90,122 18.984 20,241 4.610 9.691 Total amount 92.465 $32,995 »«),451 $28,906 $32,822 $282,824 Average $6.32 1 $2.78 $1.74 $2.79 $6.41 $3.39 $3.06 1906. Number of pajonents. . . fi Vi7 OA OOA 17,599 $32,481 17,968 5.077 8.353 $23,794 Total amount $37, 136 ! $73, 198 85.354 $51,075 $30,670 i S24S. 354 Average $5.68 $2.45 $1.85 $2.84 i $6.04 1 $2.85 $2.91 1907. Number of payments. . . 6,433 S't*! Til 28,379 20,144 $33,233 19.252 $52, 197 Total amount 5.1S9 6.103 $25,268 $22,923 85.000 «t>0, lOi ^t^,VOI 1 .?242. 730 Average S5.62 $2.57 1 $1.65 $2,711 $4.85- 1 $3.76 $2.86 1908. Number of payments. . . . Q (YXi Oi Aon 19.834 $36,347 21,169 I 4,048 $58,340 $23,325 6.542 $22,855 ' lotal amount $46,105 $78,169 92,611 $2r.5.i42 Average ■ S5.ll $2.44 $1.83 S2.76 $5.76 $3.49 S2.86 « Not reported. numTrl !'Ir 1''''''-^'<>^S^ ^OTceA or voluntary liquidations of faTorv ^''"-^^''^^'T' their penalty funds remained in charge of lactory inspectors in absence of any object for which they could be 2234 EEPOET OF THE COMMISSIONER OF LABOR. Wully used. A central penalty fund for relief of sick and iniured workmen was established by the law of May 29 (June 10), 1895 Into this fund all penalty funds of liquidated establishments must be paid and, m addition, all fines imposed by the factory commissioQs or by the courts upon employers for infractions of factory legislation The fund was so small that not until June 28 (July 11), 1901 six years later were the conditions of its application announced. According to the rules(«) only the interest on the capital and one-half of the tones collected m any one year may be used for purposes of relief The selection of cases for relief is left to the chief inspectors of the six districts, into which the entire factory inspection area in Russia is divided. It may be given either in the form of lump-sum payments not over $51.50, or pension not over $4.12 per month for a period not exceeding three years, unless extended by special order of the minister 01 hnance (now of the minister of commerce and industry). Relief may be given only to workmen employed or previously emoloyed in estab- lishments subject to factory inspection and only to workmen in most urgent need, preferably in cases of complete disability from illness or accident or to families of deceased workmen. In judging the merits of the case and the amount of pension to be granted, the inspector must consider the causes of disability, the degree of distress, the length of time the workman was employed in industrial establishments his earnmgs, and whether he is receiving any other relief, whether for injury by friendly agreement, or through an award of the court or from the establishment fine fund. Though this last qualification is included m the rules of June 8 (21), 1901, a special amendment to the law was approved February 19 (March 3), 1904, to the effect that per- sons receivmg compensation for injuries by virtue of the law of June 2 (15), 1903, are not debarred from the rigiit to receive relief from the central fine fund. On January 1, 1901, the central fine fund amounted ^ llAol ™K^ If 39'^38) and by January 1, 1909, it had increased to 594,225 rubles ($306,026). The income from all sources, transfer of establishments, special fines, and interest on accumulation in 1903 was 84,488 rubles ($43,511); in 1904, 65,253 rubles ($33 605)- in 1905, 53,452 rubles ($27,528); m 1.906, 104,006 rubles ($53,563 ■ fo.^x'^^V^'^^^ ™''*^' ($27,284); and in 1908, 78.226 rubles ($40- 286). The grantmg of relief from this fund began on July 1 1902 and during the six months of that year amounted to 24,442 'rubles ($12,588); during 1903 it amounted to 43,939 rubles ($22 629)- during 1904, to 39,801 rubles ($20,498); during 1905, to 38 254 rubles ($19,701); during 1906, to 43,551 rubles ($22,429)- during 1907, to 35,865 rubles ($18,470); and in 1908, to 41,069 rubles "Balabanov, M. Fabrichnye zakony. Sbornik zakonov, raspoorazhemi i raziasnenu po voprosam russkavo fabrichnavo zakonodalelstva. *~ •» CHAPTER IX. — WORKMEN S INSURANCE IN RUSSIA. 2235 21,150). The total number of beneficiaries in 1905 was 1,282, the average benefit being therefore about 30 rubles ($15.54).('') Fine Funds fob State Employees.— The principle of fine funds for the benefit of the employees has been extended in later vears to private mining and metallurgical establishments, by the decree of March 9 (21), 1892, making the law of 1886 applicable to them; to the workmen employed by the navy department on October 8 (20), 1892, the maximum allowance being 60 rubles ($30.90) and not more than once a year; and to the employees of the arsenals and ammunition factories of the war department on April 21 (March 3), 1895. In other departments, or in those special groups of industry where special sick benefit funds (Kassy) exist, which will be described hereafter, the proceeds of fines and penalties are turned into these funds. This is done in all state mining and metallurgical establishments, in all private mining and metallurgical establishments of Poland, in some private mining establishments of Russia proper, and on railroads. (^) An imperial fine fund exists also for the mining industry similar to that for the manufacturing industry. On January 1, 1901, it amounted to about 245,000 rubles ($126,175). (0 SICK BENEFIT FUNDS. As a whole the sick relief furnished by the fine funds does not meet the demand. The reUef granted is small and the chances for relief are slight in view of the limitations of the funds. The system of relief through special sick relief funds, organized and supported either by the workmen alone or by cooperation between the employers and employees, is growmg in Russia, but it has so far a limited appli- cation, and is in the initial stages of development. Workmen's funds are most frequently found in the mining and metallurgical industry; they were made obUgatory on all establish- ments in this industrial group, owned by the State; they are foimd in almost all private mining and metallurgical establishments of Poland, and a number of various relief funds exist in the mining industry of South Russia. The progress of these funds is explained by the greater necessity for reUef due to the dangerous nature of the work in mines and metallurgical establishments. Wliile this consideration influenced the employees, the employers found in these funds some protection against the frequent liabihty suits arising from accidents to employees. « Ministerstvo Torgovli i Promyshlennosti. Ob obespechneii rabochikh na sluchai boliezni. 6 Trudy Vysochaishe Uchrezhdionnavo Rossiiskavo Torgovo-Promyshlennavo Siezda 1896 goda, v Nizhnem Novgorodie, Tom 3. cMinisterstvo Toigovli i Promyshlennosti. Ob obespechneii rabochikh na sluchai bohezni. 2236 EEPOET OF THE COMMISSIONEE OF LABOB. Comparatively few of the workmen's or establishment funds are purely sxck benefit funds. Most of them combine this with old-age or mvahdity benefits, pensions to widows, or general relief. Before the compensation laws were adopted reUef of accident cases claimed a considerable share of the income of those funds, to wUch the^m, ployers con nbuted. Those funds which are intende.l mamly for pensions wiU be treated later in comiection with the subject of o d- age insurance. •* Sickness Insurance in the State Mines and Metallukgipat EsTAB.isHMENTs.-The most favorable conditions of sic^rrrr- ance are found m the state mines and metallurgical establishments According to the law of March 8 (20), 1861, organization of brother- hoods (tovar^nchestvo) was required in aU these minu.g and metal- lurgical establishments. Membership was made oblife^tory to 1 CdTc^T ""^l^^ ''", ^'''- ^^^ ^*" "™^i^«d ^I'^t these brother- hoods care for the workmen m case of illness, old age, or injuries resulting from accidents, provide for their widows or oiS^ reTalL^bT''^ t *'" T'^^ P°P"'''"-' -^ furthraSaWe relations between the employees and the Government. The latter .1 rTf v^ '•'" '*^ '"^ ^'^^^^^ fr«« hospitals and tlZ sick re hef . Every member of the brotherhood in case of illnSs L enti led, according to the provisions of this law, to fi^e meScal treatment and, if necessary, to hospital cure during'the period oft o months, and m exceptional cases for a longer Le. Durino: Z time married workmen who have children receive a subsidy enua to We oLL Jtr^"' "^"'^•^ ""^'^'^^'^ without' cludren receive one-half of then- wages; unmarried workers who support parents or other relatives from their eammgs, one-third of Telr wages; while no money subsidy is granted tV unmarried workere ^ithout dependent relatives. Further relief after the expiratLn 5 funds established m comiection with these brotherhocfds. These ^e i<=rK"J r.'''^ P"'"'"'^ ^'' ''^^-'^' '''^^ ^'-^d relief, and wm In 1895 SI"" "" '"°r *r- ^'•^'^ '^' ^'^^^■««* «^ old-age'pensions In 1895 there were employed m the state mmes and Jnetallurcdcal estabhshments 24,000 persons, and on January 1, 19^7 the £ a membership of these miners' brotherhoods was'igSSO?)', while the to al number of persons employed in the mining ;nd netluurdc J mdustry IS over half a million people. This system of sicSeSur aScItSn "^ '* *'' '""''"' "' ''^ ^-P'°^-' has therefoi^lliS Benefit Funds in Private Mines and Metallubgical Estab- UHMENTS OP PoLAND.-The workmen's relief funds in the privtte mmes and metaUurgical establishments of Poland were organS S CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2237 1859. By 1880 there were 7 such funds, and 18 to 20 by the end of the last century. In 1898, according to the latest data available, 22,676 employees belonged to them.(«) In 1906 the 13 most impor- tant funds had 26,944 members. They present a variety of types both as to the sources of income and the objects of their expendi- tures. The main feature upon which these funds agreed was the obhgatory participation of all workmen employed in the establish- ment, while for the superior administrative employees participation was optional. The workmen contributed regularly, such contribu- tions being defined in per cent of earnings, usually from 1 to 3 per cent, and deducted from the wages by the establishment. To some of these funds the employers contributed an amount equal to the total deductions from the wages, and in a few cases a greater sum. In several cases, however, the sum contributed by the employers was only one-half or one-third of the deductions from wages, while in one or two funds no regular contributions were made. In a verv few cases the object is strictly hmited to rendering medical aid, and the funds are known as hospital funds; in a few other cases they are strictly sick benefit fimds. In the majority of cases the funds under- took to furnish medical advice, medicines, hospital care, sick bene- fits, accident relief, pensions for old age or invalidism, pensions to widows and orphans, as well as rehef in many other emert^encies. The funds for a long time remained unregulated by law, and when the question of their regulation was raised in 1884 by the local authorities, the Central Government suggested that they be left undisturbed until a general law was elaborated. When the factory law of June 8 (20), 1886, was extended to mines and metallurgical establishments on March 9 (21), 1892, a demand was made by the administration upon the employers of these estab- lishments to furnish medical assistance and hospital facilities, and the deductions from the wages for the cost of medical help was' con- trary to the provisions of the factory law. As a result, some of the employers established the required hospital facihties, relieving the workmen's funds from this duty, without making reductions in'their contnbutions to the funds; others left the matter of medical aid to the funds as before, but paid to the funds the entire cost of this treat- ment. This conflict between the law and the practice of the miners' funds was made a subject of discussion of the convention of mine operators and owners of metallurgical estabhshments of Russian Poland m 1893, and the convention agreed upon the desu-abihty of separate standard sets of by-laws and regulations for sick benefit funds and general pension funds. The Government was petitioned in accordance with this resolution. Standard regulations for sick TzarstvIS polskom, G. Th. Tigranov, 1900, p. 132. f i y 2238 EEPOET OP THE COMMISSIONER OP LABOR. benefit funds were published by the Ministr;^ of Agriculture and State Doma.1^ February 7 (19), 1896. but none for the pLIon Since then a faw sick benefit funds were established in the mines of Poland m accordance with the new regulations and a few dder unds reorganized in conformity with tl.em; the majority of the funds, however, remained mixed funds as before, ai hough some made changes to conform more or less to the standards of fhe rXs of February 7 (19), 1895. ^ .Zv^ T^f ^^'^^""^ ^^^'° '° condensed form below were made apphcable to a comparatively small number of employees but thev represent the first legislative effort directed to the spe3fic 1^ S Sickness insurance. . ^ ^ "^ Model ^^"I^^^^ of February 7 (19) 1895, eor Benefit Funds in Private Mines AND Metallurgical Establishments of Poland! ^^* ^^""^^ estibHshmTnt^^^^^^^ TheluTd". TS^T^^^ifS'^^ ^^^^ ^ metallui^ical do not earn more thanl(^^ mbli %257 50^^^? « ^^^ ^^'^S.l^ ^^^* overseers who be admitted to membe4^p\i^n rtaielf T^^ ^.^^^^ employees may membership dues and aTequaf amount^^^^ the funds is derived from ship dues may be exor^e^ eit W JJ a ,^^?/"^"t^^ ^Y the employers. The member- &\^i «twns of the employers increased from 116,715 rubles ($59,593) to 172,866 rubles ($89,026), or 49.4 per cent. Thk in^eiS IS explained by the fact that 2 more funds were organized in con- formi y with he regulations of 1895, and receive equal contributions from the employers and employees. The expenditures for sick bene- fits mcreased from 48,948 rubles ($25,208) to 91,843 rubles ($47,299) ($3,211) to 18,294 rubles ($9,421). Pensions and lump-sum pay- S: (rM?8fin*i89V.''''' ™"^^ ''''''''' " ^^^* "^^^2 On June 30 (July 13), 1900, new rules were passed for regulation Jolltr tT. , *^' T"^ T^ metallui^cal establishments o^ k! «?■ • ^v. ™'«« J«g^l>^«d the combination of pensions with sick benefits m the same fuml and on November 29 (December 12) 1901 new by-laws of all the mines were approved by the minister of agri- culture and sta e domains. The effort to establish absolute untfom- ity was evident y abandoned for the time being. Considerable differ- ences exist m the by-laws of different funds aa to the amount of dues and sick benefits. "^"uui. oi Private Sick FuNDS.-WhDe the sick funds of the Polish mining and metallurgical establishments and the brotherhoods of the state mine and metalluigical establishments are the only groups regulated by law, similar sick funds are found in other locaiufes Jul bfatS of industry; and m many other establisliments financial assistance |s given by the employei^ and entirely at their cost either vXSS or as a result of specific agreements between the emi.loyers and employees. Unfortunately the data in regard to the development are very scant, as no comprehensive investigation has ever been undertaken, and this form of assistance owes its greatest deveC ment to the labor difficulties of 1905 and 1906. The foltwW £ review IS based upon official data given in the memorial on insurance agamst sickness presented by the Ministiy of Commerce and Inls^ to the Duma in the summer of 1908. The most satbfactorily organized establishment funds for sick e^rte^forl rV" *^' J'^'t^ l"""^*"*^' '•'«'<"^' -d here they have existed for a long time. In the Province of Piotrkow, which includes the textUe center of Lodz. 110 factories with 37.000 employe^out rf ' CHAPTER IX. WOBKMEn's INSURANCE IN RUSSIA. 2241 900 with 126,000 employees subject to factory inspection had such funds. The usual contribution of the members is 1 per cent of the wages; the employers contribute one-third or one-half of the con- tributions of the employees. The usual sick benefit is one-half the daily wage; in a few cases it is only one-third; benefits are usually limited to six weeks. The total income of the funds in the province is estimated at about 150,000 rubles ($77,250) with about 50,000 rubles ($25,750) contributed by employers. In Russia proper the movement, while more recent, has assumed a broader form. During the strikes of 1905 and 1906 financial assist- ance during sickness was frequently one of the demands presented. These demands were met halfway by many individual employers, and even organizations of employers; and collective agreements to that effect have been concluded. Thus in June, 1906, all the lumber- inen of Archangel signed an agreement to grant to their employees sick benefits amounting to one-half the wages for a period not exceed- ing one month, provided the sickness is certified to by the employer's physician. Similar agreements were made in 1905 by the printing shops, the lumber mills, millers, and other branches of industry of Samara. In Orenburg 44 manufacturers signed an agreement not to deduct the wages in cases of absence of the employee for one day on account of his sickness, or that of his wife, children, or parents; to give medical aid, but without pay, during two weeks to the worker who has been employed not less than three months; after seven years of employment, to give him medical aid and subsistence for one month; after two years of employment, for five months. Similar agreements were made in the Province of Baku, the great oil region, in December, 1904, February, 1905, and June, 1906. The first em- braced the oil refineries, chemical factories, macliine shops, electric stations and similar establishments; the second included the printing industry; the third the shipbuilding and beer brewing industries. The factory inspectors, in 1907, reported that some form of sick bene- fits was paid in 1,982 establishments, or about one-eighth of all sub- ject to factory inspection; but these establishments gave employ- ment to 586,480 persons, or one-third of all employees in manufac- turing industry. The proportion rises to 42.3 per cent in the central industrial region; 43.9 per cent in the Polish provinces; 52.5 per cent in the Caucasus, and 60.3 per cent in the northwestern region, while it falls to 32.2 per cent in the northwest; 31.1 per cent in the north; 29.6 per cent in the central black soil region; 26.4 per cent in the Baltic Provinces; 24.5 per cent in the south, and 15.5 per cent in the east. Half the daily earnings is the most frequent amount granted, this bemg the established rate in 962 out of 1,982 enterprises, or nearly one-half of them; 741, or 37.4 per cent of the establishments, grant 2242 BEPOBT OP THE COMMISSIONER OF IAB(». between married and L^lttpl^ rr^i^^f ^'"^^7 '^ "*'« married employees are entitled to r^cri^e^^^^^^^ ^"'^ cases the right to receive h«n»fif • ,'^® ^"'^'^ benefits. In some of employm^ent-^re mt L™^^^ -*ain length time durin<^ which hpn^fito J • , •'^ . "^ limitations as to the va:y consideTaSy "n 7 7 fsS T' "'r^' •''^^''' ^"' *''« *«™- those reported as^^raSJ. benefitJICl '; "^''•' P'"* ''^"^ ''^ «^» in 515 establishments, o726r;erlnt 'S reetT.;* il" Jsrf H^ mir ^ Sirer^rinltT/. ^ T"^= anTS^llSt lishments, or 9 2 per cTn; nS T^ ^ "' ^ ''^^' '" ^^^ estab- sick benefits is Sated bva-V^^ "^"- ''^ *^' *^""''"" "' ^'^^ iudgment and goo^d X'^Lnlji^rt'^^^'^' ^^^"'^'^ '^^^ ^'^^ ben^utSKeX'altLtlTL^'^^^^^^-^*^^ "^ -«*«-'^ located in thecTntral ndw ^ establishments; of these, 142 were employment XomSrL «f«T*n 'T" ^*™"'^^ ^^°^««^)' ^hero benefit^s are usullty;" d ^ri^f 2 to^ 'T ^ ^T '='""'"»"• ^heso longer period. Jsome fstlbfshmel"£; ">hTr ^"^ '"^ * pay is granted for 2 weeks before arVrrafTetchJdbSJ " '"" where the coal and irnn »>,,•». ;^ • J^iovmce or Jlrkatennoslav. with 41,628 emp7oies.?2^ '^ concen fated, 104 establishments wells of' the BatSrift " antXlf 'T**% ^'^"'* ^" ^'^^ «" from 1 to 3 months ^ ^^^ *^ ''"'' employees during d„«rh^tf:S'S:rof'"r''^^* *^^ ''""'^■•-- ^^ - authority was readHo introduce it ZTlurT' '^'"" '^^^'^^'^^ very rapid progress during a ve'^J 111 '''t "''"'*°'" ^'' '^'"^^ facts, the official report of thlM^fet * ^ p '"'"°'"\^' "P '^^ to the Duma savs "Evjr^fr^f ^ Commerce and Industry employees must bTregufledTmllto^^^^^^^^ "' '^"^''*^ *" ^^ ing the straining of the reSmS' .u ' ^""^""^ °^ P'^^^''*^ employers. The cL of the i^r ' ^^? *^« workmen and the notVa matter of ;ratetitktivITt''"'rK*'"^^^ "'"^^^ ^''^^'i governmental concern Inn^Sedbr; hi ^1' ^P^**''"" ^«' pulsory insurance." ^ *''^ mtroduction of com- Industeul Benefit SociETiPt! —T,. .jj-.- . ., funds, a considerable mSbiTindStriJ C^^^^ Russia, i. e., societies consisting of woS^nfcVr'*-'^^ '"^^ ^ occupation. While manv «.!7? . '™f" »" » certam uulustiy or time to time 1 staS. 'u'' ^*^' *'"^° ^^^''"''ed ^om «> time, no statistical or mj other recent information can be CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2243 obtained as to their number or the extent of their activity. The most frequent and important functions of these funds are sick and funeral benefits, though old age or invalid and widows' pensions are often given. Most of the societies described were found in the more progressive western border provinces, such as the Baltic provinces, and Poland, and the large industrial centers — St. Petersburg, Moscow, and Odessa. Thus, in the Baltic provinces 98 artisans' mutual aid societies were found in 1898, and 113 funeral societies. Often these mutual aid societies are found in connection with the artisans' guilds, and represent the beginnings of organized charity rather than a system of insurance. Among the Jewish industrial population of Lithuania and White Russia such funeral and sick aid societies are frequent. Better regulated benefit societies, with constitutions, sometimes officially approved by the authorities, definite dues and benefits, are most frequent in the printing trade. Such funds exist in Warsaw, Riga, Dorpat, Reval, St. Petersburg, Moscow, Odessa, Kazan, Kiev, Saratov, Samara, Smolensk, Tomsk, Nizhni Novgorod, Ekaterinoslav, Orenburg, Orel, etc. Those in the western cities are the oldest, the society in Warsaw existing since 1814, in Riga since 1816, and in Dorpat since 1819. Of the printers' benefit societies of St. Peters- burg, one was organized in 1834 and another in 1866; the Moscow society followed in a few years, 1869, while the last 10 mentioned were organized since 1900. The sick benefits are usually from 3 to 5 rubles ($1.55 to $2.58) per week, free medical advice is provided, and the funeral benefits are from 20 to 60 rubles ($10.30 to $30.90). Old- age pensions are granted to invalids after fifteen or thirty years of membership, the amount of pension varying according to the length of membership, also according to the amount of dues; two or three classes of dues are the rule rather than any percentage of the wages. Such organizations are also met with among the commercial employees. (") PROPOSALS FOE COMPULSOEY SICKNESS INSUEANCE. In 1902 the Russian Society for Development of Industry and Commerce appointed a commission which elaborated a complete legislative plan of compulsory sickness insurance and presented it to the Ministry of Finance. When the special interministerial commis- sion was organized in conformity with the imperial manifesto of December 12 (25), 1904, and the resolution of the committee of mmisters of December 24, 1904 (January 6, 1905), the instructions demanded the elaboration of a plan of compulsory sick insurance, the cost of which shou ld be borne by both employer and employee. a K rabochemu voprosu v Rossu, S. N. Prokopovich, 1905. 2244 REPORT OF THE COMMISSIONER OF LABOR. The first draft of a sick insurance law was published on March 29 (April 11), 1905, in conjunction with the general plan for work- men's insurance. PROPOSAL OF 1905. This proposal for sick insurance embraced the same class of indus- tries and establishments as the law of June 2 (15), 1903. This insurance was to be effected by establishment sick benefit funds, to be organized in connection with each industrial or mining establishment employing over 50 wage- workers; smaller establisli- ments might be joined together for the purpose of organizing a similar fund, and even establishments of the larger class in the same locality might do so, if both the employers and employees agree. Mem- bership in these funds was to be obligatory for all workers employed either by the establishment or by its subcontractors, and also salaried employees receiving not over 1,500 rubles ($772.50) per annum. Other employees may join the fund voluntarily. The benefits paid by these funds were to be as follows: (1) Daily sick benefits amounting to from one-half to one-thu:d of the daily wages of the worker, to be paid until perfect recovery or for a ilefinite maximum limit which is to be established for each fund, but must not be less than three months; (2) maternity benefits to working- women in case of childbirth, amounting to the earnings of four to six weeks; and (3) funeral benefits, equaling twenty to fifty times the daily wages. Followmg the example of the German sickness insurance system, certain obligations toward the employees injured while at work, and covered by the compensation act of June 2 (15), 1903, were to be transferred for a certain time from the employers to the sick bene fit associations. These include funeral expenses, sick allow- ances, and cost of treatment for six weeks. This transfer seems to be justified by the large burden which tlie contributions to the sick benefit association place upon the employer. To meet its obligations the sick benefit association was to collect dues from its membership; the amount of these dues to be not less than 1 per cent nor more than 3 per cent of the actual earnings of the employees. The employer was to contribute to the association an amount equal to the total income from dues. These dues and contributions, together with other incomes of the associations, such as interest upon money, constitute the "turn-over" or general fund, out of which the obligatory benefits must be paid. In addition, the association must possess a reserve, into which were to be paid the surplus from the annual operations of the association, the fines for delinquent payment of dues by the employer; and the membership might order a definite percentage of the dues of both CHAPTER IX. — WORKMEN S INSURANCE IN RUSSIA. 2245 the employees and the employers to be paid into the reserve. The reserve was to be used to keep up the uninterrupted payment of bene- fits when the operating fund is exhausted. A third fund was also provided, to be known as the fine fund, into which the fines levied upon the workers must be paid, and this fund was to be used only for additional benefit features, which each asso- ^J ciation may establish; the following feature being permitted by the proposed law: Medical treatment of members of families of workers belonging to the associations, sick benefits to the members of the fam- ily, funeral expenses in case of death of members of the family, mater- nity benefits to the wives of the workmen, and also various subsidies, other than sick benefits, to the needy workers. In its main features this legislative proposal follows the provisions of the decree of February 7 (19), 1895, promulgatmg a standard con- stitution for the sick benefits of the Polish mining and metallurgical industry. The duty of furnishing medical help was not imposed upon the planned associations, in view of the special law proposed for regulation of the matter of medical assistance entirely at the expense of the employer; and the minimum scale of sick benefits allowed was considerably higher. On the other hand the distmctions between married and single workers was eliminated, and the amount of medical assistance furnished to the family of the worker would be very limited, since only the fine fund would be available for the pur- pose of such extension of the activity of the associations. PROPOSAL OF 1906. The draft of the law adopted about a year later at the insurance conference of April 15 to 21 (April 18 to May 4), 1906, organized by the Mmistry of Commerce and Industry, followed the general plan of that of 1905, but introduced several important modifications. The scope of the bill was made somewhat more comprehensive. It was not limited to those establishments which are covered by the accident law of 1903, but embraced all manufactures, mining and metallurgical industries. The conditions of membership for the employees were left the same, and also the three classes of benefits, with the same limits of the mini- mum and maximum benefits, except that a maximum limit of sick benefits was established at 26 weeks. Provision was made for the sick benefit fund assuming the employer's obligation to furnish medi- cal help, for an agreed stipulation, such agreements to be approved by the local factory inspection office. The combination of sick bene- lits with care of the sick was therefore permitted, though not required. The mam sources of income of the fimd were to be contributions from the employers and employees as in the previous drafts; but per- 2246 REPORT OF THE COMMISSIONER OF LABOR. haps the most important change was the reduction of the share of the^employer, from an amount equal to the contributions of the employees to one-half that amount, thus considerably limiting the income of the funds. Thus, while each sick fund was to liave the right to extend to the members of the family of the employees the cost of treatment, sick benefits, maternity benefits^ or funeral expenses, the opportunity for such extended activity was evidently considerably reduced. Even the possibility was foreseen that with this reduction the maximum dues permitted (3 per cent of the earnings) might not be sufficient to meet the expenses of minimum benefits, and hi such cases the employers were made responsible for the deficit. PROPOSAL OF 1908. The workmen's sickness insurance bill, which was introduced in the Duma January 25 (February 7), 1908, was much more elaborate than its predecessors. Organization and administration were more carefully worked out in this bill, representing for the time being the final conclusions of the Government. It contained many changes in the plan, though the basic principles remained intact. The bill cov- ered the question of medical aid, but its organization was kept apart, as explained in the section dealing with that problem. The bill is an essential part of the comprehensive system of labor insurance planned by the Government. It is not limited to manu- factures and mining, but also includes railroads, inland navigation, and street railroad estabhshments. It is limited to estabhshments which employ steam or other mechanical power aud at least 20 permanent wage-earners, or 30 permanent wage-earners where no mechanical power is used. This provision is expected to solve the question as to what establishment is a factory or mill. Small shops may be so advantageously located that a union with existing funds would present no difficulties; it is therefore provided that the labor insur- ance council may, upon recommendation of the local labor insurance commissions, extend the application of the law to establishments using mechanical power and employing not less than 5 wage-workers. Under special conditions the council may temporarily except certain small and isolated establishments from the operations of this law until these conditions have changed. Establishments of a temporary nature may be relieved by the local commission from the obligations imposed by this law; and appeals against such acts are brought to the central council, whose decision is final. This provision in regard to temporary enterprises was thought necessary because of the diffi- culties connected with a temporary organization of a sick benefit fund. When such changes take placs in the nature of an estabhsh- ment as to take it out of the class to which the bill applies, the obli- CHAPTER IX.— workmen's INSURANCE IN RUSSIA. 2247 gation of insurance ceases. All establishments owned by zemstvos and municipahties are excepted, for many such public institutions have already established systems of sick relief In the establishments covered by the law allparmanent employees recemng less than 1,500 rubles ($773) per annum (including the vaS of board and lodging), whether employed a. workmen or in the offici are subject to the insurance system. Temporary employees hired for less than two weeks are excepted. The maximum Hmitation of salary is taken from the law of 1903 and is identical with that in the accident insurance. Under special regulations, persons receiving more than^hat remuneration may voluntarily come under the insurance According to this bill insurance against sickness must be by means of sick benefit associations. Estabhshments with 400 permanent employees or over have their individual sick benefit associations Td only m exceptiona cases may the organization of independent aTc^ ciations be authorized by the local labor insurance commiSofS establishments with a smaller number of employees. Smalleresta^ hshments must unite for the organization of such associaTon or o^ existing associations. ' ■• The organization of joint a^ociations must have the approval of the propnetors of the several establishments, as well a. of theWd labor insurance commissions. For the admission of a new iubS ment into an existing association, or the union of several ex'sSl association, into one, the agreement of these associations must ds^ be obtamed. Such agreements and approvals are necessary in view o the differences in the rates of accidents and sickness. This nr^ vision IS limited by the clause authorizing the local labor insurant commission to order such unions on its o^n initiative, and thus Z final decision of all such questions is practically taken out of the hands of the employees, who are the main contributor to the associatior^ and left en irely in the hands of the authorities. The ^XSu of the employee in the association begins with the dly^Hntei service and ends either with the expiration of such sTrv^ce ^r with S Zeyel' '' '""''' ''''' '^"^ ^«^*^ membez^hip for at is lubie'^ttt'".' T"^ ^Tu '^"^^ "^ constitutions, but this right efttotheeml"' tr- ^^'r"^^' *^ ^''P^"" '^' 'constitution is are not trZlX T ""^'^ "^ '^' establishment). The emplovees central /'^ '"'."^'^ *° ^^^^ »ny voice in the matter. In addition ' the XonstUutr^T ^rf '' ^^«^*^^ *« P^«P-« » '^--al (sti be obrat^^^^^^^ '"^ !^^ '^' ''•^<'P"°« «f '^' constitution is not to to tSelnir-"r" "" ^"•'T'^^'l- The application for a permit ™ ^'^ «««°«'^t'on IS made by the owner of the establishment 0/7 J5 — ^vol2 — 11 48 2248 BEPOET OF THE COMMISSIONER OF LABOB. / to the factory inspector, and if the use of the standard constitution is agreed to the inspector grants this permit. If a new constitution or any modification of the normal constitution is desired, the approval of the local labor insurance commission must be first obtained. If the employer does not make such an application within the time specified by the commission the latter may order the organization of the institution under the standard constitution. The constitution must state the name of the association, place, list of establishments, method of election and functions of the board of directors, the organization, functions, and procedun^ of the general meetings, the revenues, their investments, etc., the expenditures, bookkeeping and accounting, the metliods of amending the constitu- tion, methods of hquidating the association if necessary, and care of books and documents during temporary suspension of the association. These details of the constitution must conform to the limitations established in the law. The associations are permitted to enter into agreements with the employers to assume for a definite consideration the duty of fumisliing medical help, and for this purpose they may establish hospitals and dispensaries and also enter into agreements with zerastvos and mu- nicipalities or private institutions for treatment of tJie sick. The payment of benefits is the main function of the associations; this includes sick benefits, maternity benefits, and funeral expenses. Sick benefits are paid in all cases of sickness lasting over three days, except when sickness is self-afilicted with malicious intent or caused by fights or criminal acts. The exception of sickness lasting three days or less is expected to relieve the associations of minor cases which are not serious enough to cause financial distress to the wage-earners, or which may be due to malingery or debauchery, and which would prove to be a heavy burden for the association. The amounts of the sick benefits are left to the associations, but must fall witliin the following limits: For married persons with dependent families, from one-half to two-thirds the daily wage, and for persons without dependent families (whether single or married), from one-fourth to one-half of the daily wage. These sick benefits are paid for not over twenty-six weeks in any one case of sickness, and not over thirty weeks to one person within the same year. Those members of these associations who are at the same time insured against accidents (according to the new accident insurance bill) and are disabled in consequence of an industrial accident, are entitled to benefits from the day of the accident not to exceed 13 weeks. This obligation does not rest upon the sick benefit association when the injured person is not insured against accidents, but is covered by the law of June 2 (15), 1903, which entitles the injured jierson to receive CHAPTER IX.— workmen's INSXIBANCE IN RUSSIA. 2249 such benefits directly from the employer. If the mjured person is neither msured agamst accident nor covered by the old law of 1903 he is entitled to receive his benefits from the associations on the same conditions as any other sick member. The extension of the length of care supplied by the sickness associa- tion to the injured person from 6 to 13 weeks is the most important modification suggested in the last draft. It must be remembered that of all accidents, according to the statistical data for 1904 only 4 per cent required treatment for over 13 weeks, while 85 per' cent required treatment for 6 weeks or less, so that an additional burden of t/onT Th. . r nl"'' ", *^''"" "P''" ^^^ ^'^k insurance associa- ir^'-i-ff ""ft"^' additional burden must be measured by a some- what dzflferent method. Out of a total of 1,135,491 sick days 1^ which treatment was granted in 1904, the accidents requiring treat- ment for not over 6 weeks claimed 550,695 days, or 48 per cent To this must be added the first 6 weeks of treatment for aU other t J^ which amounted to 276,948 days, the total being 827,643, or 73 per c«tt' The treatment of cases lasting over 6 weeks but not over 13 ^^^i would impose an additional duty of 271,994 days, or 24 per cent o^ about one-third of that of handling the cases lasting under^6 w3s' Maternity benefits paid by the associations must be from Te half from tie' da? of ' t^ ''"'^l'^- . '''''' *^« '^ ""^ ^^'^ ^^ f«™'ls from the day of confinement, and are paid only when the woman has belonged to some sick insurance association for thri ZZZ previous to childbirth. To enforce the hygienic advanta^ oTXt matermty benefits, the associations are permitted to wit^old em Wwomen who return to hired labor before the expiralSn of fl" The funeral expenses paid by the sick benefit associations must simplify and accelerate the payment of such expenses in cases of mTntVhT T'^'kv' *'" ^-^^ benefit associations make sucHav tions, the latter reimburse the sick benefit associations. in all these benefits the payments are computed on the same basis of daily earnings as their contributions. The actual rates oXncfi ts w^hin the limits established by the law are determined by the asTocS .on in general meeting, for a year in advance. A few a!lcl Ho. al hmitations are permitted to the association. Thus s ngle membei TZ^," f«P"-d of benefits altogether or receive smaller Tmount" extent ifh Tr" "^•'" *^^^ ^'^ '^'"^ *-**«" ^ * hospitTat the expense either of the association or of any other third party- benefit, may begm before the fourth day of sickness; they mayte' paij fo holidays; a certain ength of membership not exceeding two weet may be requn-ed before the right to receive benefits is "acquired (^ 2250 EEPORT OF THE COMMISSIONER OF LABOR. case of voluntary members no benefits must be paid within the first week of membership); members who do not comply with the rules of the associations or who disobey the physician's order may be de- prived of their benefits, wholly or in part, and may ])e fined not to exceed 3 rubles ($1.55) for each offense. In addition to these obligatory benefits the associations may extend their activity to the members of the workmen's families. Any or all of the benefit features may be extended, as sickness, death, or childbirth in the workman's family often seriously affects his economic status. The amounts of such additional benefits must be definitely stated in the constitution of the association, and in no case must the expenditure for such additional benefits exceed one- third of the expenditure for the required benefits. , The revenues of the funds are to be derived from the same sources as in all the preceding plans of sickness insurance; primarily they consist of periodic contributions from the employees and employers, to which are added the following minor sources of revenue : Income from property and investments, voluntary contributions, fmes and penalties imposed in accordance with the laws by the establishm ^"^""^^ ^^^ contributfonTor by reducing the benefits witlun the hmits estabUshed by the law or by other means not contrary to the law. ^ In case of temporary embarrassment of the fund the employer mus advance the necessary money as a noninterest-bearing lo'an' XtAhZr ''^''^ir^^oy-^ "'^'^^^ •" "'^^ association tL loan Sonf T^ ^ ^"Ti '^'"^ ^'"''"^''^ *° '^^^ respective contribu- ness, such loans are hmited to a sum equal to the revenues for three f 2252 BEPOBT OF THE COMMISSIONER OF LABOR. months. All revenues of the a.ssociati(.n must be used in hquulat- ing this loan before any payments are made into the reserve. In case permanent increase of dues Incomes necessary the associa- tion, in general meeting, may raise the contributions of the employers and employees above the normal limits; but the same proportion of 2 to 3 must be preserved, and the employer's share must not exceed 2 per cent of the employee's wages. To be effective this measure requires the approval of the local labor insurance comnussion If the sick benefit association should fail to take such steps us are here out- Uned the commission may order them on its own mitiative. What further measures should be taken, ifafter aU this is done the revenues of the association still remain insufficient, is not indicated in the law except in the provisions about the liquidation of the association. The provision of the plan of 1906, that the employer meet the excess of the charges on the association above the regular revenue, has been eliminated from the bill. On the other hand, the reduction of the contributions of the employers and employees below the legal mini- mum is permitted whenever the reserve exceeds the required hnut. Self-government is Umited by the rights of the employers and by governmental control and regulations. The organs of adnumstration are the general committee and the board of directors. The members of the general committee are selected by and from the general niember- ship of the association. The number of such committeem(.n shall not exceed 100, and when several estabUshments are united in one associa- tion the number of committeemen must be proportioned to the number of members in the association. An important provision makes the chairman of the general committee, with a casting vote in case of a tie, a representative of the employer, or of the employers by mutual a t^r. th^ The earliest pension legislation dates back to the tmie of Peter the Grla^ but wasLended for navy employees only. It was enacted on VZa'rv 13 (24) 1720. On June 9 (20), 1728, that legislation was SSd to the'axmy. The first pension act referring to industrial employees was promulgated October 28 (November 8), 1738, and CHAPTER IX.— WORKMEN 'S INSURANCE IN RUSSIA. 2255 applied to some state factories. All this legislation included only ca^s due to invahdism or total disability caused by sickness la reorganizing the system of army pensions, Katherine II was the first to introduce the old-age pension for a definite length of service On June 22 (July 3) 1797, old-age pensions for workmen emplo^eSn the state mines of the Kolyvan-Voskresensk mining district were intro- ?^,T ;Z !J' *"■ ^^•"^^y-fi^^ years of service, and on March 9 (21), 1804, these pensions were extended to the employees of the state factories at Olonetz. A general pension law for military and civU employees was promulgated on December 6 (18), 1827, which with minor modifications, is now in force. ' The modern era in the history of pensions on an insurance basis for March 8 20), 1861, establishing the miners' fraternities in the state mines and metallurgical establishments, already mentioned in connec- lon with sickness msurance. Their activity was insignificant until ine issue of the temporary regulations of AprU 9 (21) 1881 Thev were reorganized by the law of May 26 (June 7), 1893. The estab- lishment of pension funds for employees of private railroad compa- nies was ordered by the law of May 30 (June 11), 1888. On June 3 do) 1894, a law was approved providing for old-age pensions for the employees of the state railroads. This was extended and amended by the law of June 2 (15), 1903 (the same date as the workmen's com- pensation act for factories, mines, and metallurgical establishments), which IS now ,n force. The employees of the government printing office were provided with a pension fund by the law of June 3 (15) 1894. On January 1 (13), 1900, a pension fund was established for the vast army of employees of the government spirit monopoly. On January 27 (February 9), 1903, a law was passed, and amended on Apr. 8 (Maxch 1) 1903, ordering the establishment of pension funds n all the industrial establishments of the ministry of the navy. In ^teTsSLl *'^^^ ''^^''^"^^ '"^ '^- ^^^^"-^"^^ -^"^ ^"-'l^-e STATE MINEES' BBOTHESHOODS. luilttrrf Tf- r*'"" ^°'" ^'^P'^y^^^ of the state mining and metal- eZtilR! ,"'"'%"'?/'" *^* ^•"P"'*^"^ -'l «-V«tematic effort in Russia to provide old-age and invalid pensions for industrial ceeu ^0,000 Its organization dates back to 1861, though the activity serfs ifistrth"' rr^ ?^^^"- ""''''' *"« emancipation of tte utiL f if ' , , f **' ^''''^ *°^ metallurgical establishments chanl^l ,t """i-. "'^°''; P"' '^" ''f March 8 (20), 1861, which HshSt of r"f '" ?^'^'}^^'' «°ntract, also ordered the estab- ashment of employees' brotherhoods itovaruJickestvo). The func- 2256 REPORT OF THE COMMISSIONER OF LABOR. tions of the brotherhood were very broad and included care for the workers in case of sickness, old age, or disabihty because of acci- dents, provision for their widows and orphans, improvement of the morals of the working population, and furtherance of amicable relar tions between the workers and the administration. The latter was required to further the ends of the brotherhood by establishing free schools and hospitals, employing physicians, and subsidizing the relief funds wliich were ordered to be established in connection with each brotherhood. The minister of finance, under whose jurisdiction the state miners were prior to 1873, was ordered to issue detailed regulations in regard to the activity of these relief funds, but none were issued for some 20 years, and great variety existed in these funds before that time. On April 8 (2) 1881, i. e., about eight years after these miners had been transferred to the Ministry of State Domains, temporary regulations were promulgated; they were confirmed and made permanent on May 26 (June 7), 1893, and are still in force. The relief funds of these brotherhoods combine tlie functions of a pension fund, sick relief fund, funeral benefit society, and savings and loan association. The sick relief activity of the funds has already been mentioned in connection with the subject of sickness insurance. Pensions to superannuated or invalid members of the brotherhood, their widows, and children represent the most important branch of this activity. The regulations governing these benefit funds, as adopted in 1881 and slightly modified in 1893, are as follows :(") All workers and office employees over 18 years of age who are engaged for at least a year are members of the brotherhood and of the relief fund. With other employees membership is optional. The sources of income of the fund, established by the law of 1861, consist of (1) deductions from the earnings, 2 to 3 per cent (all funds except one making deductions of bnly 2 per cent), (2) contribu- tions from the establishment equal to the total sum of deductions from the workers' earnings, (3) fines imposed upon the employees, and (4) other accidental sources. In cases of necessity the general fund of the brotherhood may be called upon to furnish the necessary sums. Full old-age pensions are granted after thirty-five years of employ- ment and amount to one-half the average wages or salary for the entire period. In a few occupations the li armful nature of the work is taken into consideration in shortening this period. Thus each year spent in dry grinding of steel blades counts for three yeairs of (a) Otvietstvennost predpriminatelei za uviochia ismert rabochikh, V. P. Litwinov- Falinskii, 1900, p. 264. Kaasy Gornorabochikh, G. Th. Tigranov, 189«, p. 9. CHAPTER IX.-WOEKMEN'S INSURANCE IN RUSSIA. 2257 service. But pensions of smaller amounts must be granted when S: ""T'r":= ''''' ^"'^■^'y-fi- -^ 1- than ^tyJZ'"^: tlurd; and after twenty to thirty-five years of employmentTe La^" of the average annual earnings. F'^yment, one-half In case of deatli the widow havin<^ no childr«.n .,n,i^, i c , " receives until death or remarriage ^netWrdnf 7 ^^"'^ **^ '^* the husband would have biTStitW tJ f l^ ''^'^'°° *^ "^'"^^^ 16 yea. of age.she recei;^Tne!Sh Lit It, ^ ^o^tff oTtt same rates apply to child^n of IV f *^^ P*''"'*'°- ^he does not r^Z\Z ptltn ei^ta^ Tf^Z^'Z T'' = r reeri lo^etirr ^ rr '^-^^ -- i? ti fi incapacitated i^^^^::^^ ;:s^:t:i;::, ^-^"^ only untd the completion of the sixteenth y^ar In eJ^"'J*^'""r from one state establislmient to another the voa^ «f '^•"* former establishment are count^rl II! • ^ ^ ^'"'^"^ '■» *'»« of the last establisW^t andlhetc^^^^^^^^ ^H T"" '^ *^^ '"^^^^ funds concerned. accounts settled among aU the The fund takes charge of the cases of sickness aft^r th. -et4^he ci^ on;erm\i:iTp:;i letS^^^^^^^^ ^""1 dunng the first two months namelv 7n ,,^°^'?*^*1"*' *« those paid with dependent relatives one-lhrrdnf, ""^^^ "'^'^ "' ^'•^°^«' man without chil.lren o^eTalf of h, '''^'^\ ^^ '^' •"^^"^d man with children, tw^tZtof ll wagr^' ^°' *« *^« ^-^^ beirbrfr rvii trnri 'r"^-- ^^ "^-^^ *^- *» p- which must not excld on 'i^^rT^' ^^ '""^^'^ * lumpsum, 2258 KEPORT OF THE COMMISSIONER OF LABOR. of that sum. Other benefits may be granted in cases of great need not to exceed one month's earnings, if approved in eacli case by the general members' meeting. The fund is also authorized to receive savings of the members, for which it may pay interest not to exceed 4 per cent per annum, and grant loans from its free funds, upon which it must charge a higher rate of interest than it pays upon the deposits of savings. The administration of the affairs of the funds and the brotherlioods is intrusted to the general meetings of members and a council (prikaz) consisting of a chairman appointed by the administrators aners. Number. Per cent. 14,339 73.2 2,183 1L2 1,254 6.4 1,027 5.2 417 2.1 325 L7 44 .2 19,589 100.0 The figures in the next table indicate that a laige number of em- ployees avail themselves of the partial pensions after 10 years of employment. The number of pensioners on January 1, 1907, was 3,399, who received an aggregate pension of $61,574 annually, or $18.12 per annum. According to the relation of tlie pension to earn- ings, these 3,399 pensioners were distributed as follows: CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2259 NUMBER AND PER CENT OF PENSIONERS AND TOTAL AND AVERAGE PENSION*? PAID BY THE STATE MINERS' BROTHERHOODS ON JANUARY 1, 1907 BY RITE OF PENSION PAID. ' ' ^^ KAlJs. UJ. ISource: Ministerstvo Torgovli i Promyshlennosti. Ob obespechneii rabochikh na sluchai bolieaii.] Rate of pension. Pensioners. Pensions. One-sixth of the wages. . One-fifth of the wages . . . One-fourth of the wages . One-third of the wages. . One-half of the wages . . . Total. Number. 8S9 779 538 518 705 Per cent. Total amount. 26.2 22.9 15.8 15.2 20.8 o3,399 a 100.0 $8,839 10,219 7,806 10,001 24,709 Average per anniun. t9.94 13.12 14.51 19.31 35.05 61,574 18.12 « This total is not the correct sum of the items; the figures are quoted as found in the original report. The total income of these funds amounted in 1906 to '^93 378 jp rubles ($151,090), of which 109,915 rubles ($56,606), or 37.5 per cent IB were contributed by the members; 95,410 rubles ($49,136), or 32.5 per " cent, by the management of the mines and factories; the interest on investments was 52,662 rubles ($27,121), or 17.9 per cent; interest on loans 23,987 rubles ($12,354), or 8.2 per cent, and miscellaneous reve- nues amounted to 11,404 rubles ($5,873), or 3.9 per cent. The expend- itures for the same year amounted to 193,032 rubles ($99,411), of which the larger share was spent for pensions, 108,696 rubles ($55 978) or 56.3 per cent; of this sum, 80,560 rubles ($41,488), or 41.7 percent, was paid to members of the brotherhood and 28,136 rubles ($14,490),' or 14.6 per cent, for pensions to widows and orphans. Temporary benefits for sickness claimed 59,986 rubles ($30,893), of which onlv a small share, 7,646 rubles ($3,938), was used for medical help, as the law grants such necessary help to the employees gratuitously. . Mis- cellaneous expenses amounted to 24,350 rubles ($12,540). The loan operations of the brotherhood are considerable; 637,498 rubles ($328,311) were loaned in one year, and 628,149 rubles ($323,497) were repaid. The savings deposits were very much .ri!!; ^^'^^!^ '"^^^' ^'^^'^^^)' ^^^ ^^^ withdrawals, 13,110 rubles Kmj52), nearly equaled that sum. EAILROAD EMPLOYEES' PENSION FUNDS. The army of railroad employees, which is rapidly growincr in Rus- sia has been enjoying for the last two decades a better provision for ow-age and mvalidity insurance than any other body of workmen and salaried employees m Russia. This is particularly true of the state railway employees; and as the Russian Government owns and operates over two-thirds of the entire railway system of the country, T2T T?''^^ ""^ ^^^ '^^^^^ employees enjoys the benefits of the system. But pension funds are obligatory for the private railway 4 2260 BEPOET OF THE COMMISSIONER OF L.\BOR. employers as weU The law demanding the establishment of such 30 (June 11) 1888, six years before the law of June 3 (15) 1894 establishing the central pension fund for the state railway i^'^'s' The folowmg table shows the development of state an^Sat^^ railways m Russia from 1880 to 1905: ^ MILEAGE OF STATE AND PRIVATE RAILWAYS m RUSSIA, rm TO 1905 ' ISourco: Ministerstvo Putei Soobshchenia. Otdiel Statistiki i Kartoerafii ^f^ti^h hi-, terstvaputeisoobshchenia Vypusk, f^Jo.'j ^^^^"^^^^^^^ ^'•o^nik minis- Year. Statu railways. Private railways. Miles. 18S3.. 1885.. 1890.. 1895.. 1900... 1905... 43 2,086 6,19« 14,429 22,407 25,618 Per cent of total. 0.32 12.98 32.71 62.98 68.03 69.50 Miles. Per cent of total. 13, 571 13,990 12, 744 8,480 10,529 11.241 Total miles of railwiiy. 99.68 87.02 67.29 37.02 31.97 30.50 13 614 16.076 18. 940 22.909 32.936 36.859 earTy'as^Ts.r^''^^ w'^ ^"^ '.^"'""^ "'"P^^J'^^^ ^'"^ established a. earlj as 1858 on the Warsaw-Vienna Railway. Other Diivate rr>,., pames established funds within the next decade bTsso "« h pension funds existed in 14 lines operati.ig over 5,500 "versts (3 646 mdes), which w^ nearly one-third of the raUway ^eaje £ Ru;!i These pension funds were not ba.ed upon strictLuran^e ^indZ' They were b^ed upon length of service of the member and h slw at the time of separation from the service, and were to be Wl to Z membei-s of the fund, their widows and orphans. Ther^wS L 2 this lack of adjustment very soon became noticeable, so that ma^y of «iese funds went into liquidation, whUe in other casei such TiqiSion was forced upon them by the order of the Government. ''^"'^**'^" Ihe first effort to form a pension fund on strict scientific insurance principles was made in 1877 by the Kiew-Brest line, now a paTof the Southwestern Railway System. Two smaller rai wTy compali^ organized similar funds in 1885. Other railways de^red TfoZ this example but were hampered by the lack of scientific statSca^ data upon which to base their rates. The Ministry of Ways of Com r^[n,! ^T . '"'^^T^^- ^^ 1881 a plan wa^ presented by the Se7;u'"thaTa '""'r^'^'r f *^^ '"'"'^^^^ "^ finance,^', pointed out that a umform system for all railroads might prove too t' ™rof ''th'^^'°^ *^ less pn,sperous roads, ai.'Cl^of tue guarantee of the mterest on bonds and the dividends bv the state treasury, mdirectly a burden upon the latter. The niLter CHAPTEB IX. workmen's INSURANCE IN RUSSIA. 2261 therefore suggested that the Government limit itself to issuin^r general rules in regard to establishment of individual pension funds'* In view of this attitude of the Ministry of Finance, the plan for a cen- tral pension fund was abandoned, and the Ministrv of Ways of Com- munication applied itself to the elaboration of plans for' individual pension funds for each railroad company. It was felt at the very beginning that many of the railroad companies were too small to have their own pension fund, since with the small number of employees it would be difficult to apply any annuity tables. It was decided therefore to permit the organization of a '' saving and relief fund " where a pension fund was not practicable, and two separate drafts were prepared for these two types of organizations. They were presented to the State Councd on December 22, 1887 (January 3, 1888), and were approved by the Emperor on May 30 (June 11), 1888. By a decree of the same date each private railway company is required to establish either a pension or savings fund; the pension fund is considered preferable but the organization of a savmgs fund may be pennitt^, under special circumstances, by the imperial authority on recommendation of the Mmistry of Ways of Communication. These funds are required to be organized in conformity with the standard rules approved on the same date, and the existing funds must be reorganized to con- form with them. Each fund wa^ required to have it^ own constitu- tion and by-laws, provided they were in agreement with the "general rules" and approved by the ministry. The general provisions for the establishment of the funds of either type may be thus briefly summarized: The basis of both funds con- sists of enforced savmgs of the employees, 6 per cent of the wages 10 per cent of the premiums given to the employee for efficient ^rvice and after each promotion in salary, the entire excess of the new over the old salary for three months; and additional payments from the funds of the railway company, not to exceed 50 per cent of the employees' contributions, both of which are credited to the individual accounts of the members, and in addition various other minor sources of income. From these credits benefits are granted to the members at the time of their separation from the service, or in case of their death while m service, to the widow and orphans. In the case of the savings and relief funds the benefits are in the form of a lump sum- in the case of the pension funds the benefits may be either in the nature of ump sums or in the form of pensions (annuities), depending upon the length of service or conditions of separation. The amount of the benefits, whether lump sums or pensions, depends upon the length of the service, the degree of disability, and also the amount credited to the employee in the fund, while in addition to that, in tne case of pensions, the age affecting the probabiUty of Ufe of the pensioner is also taken into consideration. 2262 EEPOET OF THE COMMISSIONER OF LABOR. PRIVATE RAILROAD PENSION FUNDS. These funds may be established either by one railway company or by several companies combining for (hat purpose. The constitution and by-laws of each fund must be prcj.ared by the board of director of the railway company, adopted by the stockholders' meeting, aad then forwarded to the minister of ways and communication ^,r his approva m conjunction with the minister of finance and the state comptroller. All persons permanently employed by the railway company, except the officers, are required to join the pension fund. Out of a total of 711 922 employees of the railroads (both state and privately owned) ers StTqt" '''t\'''^'''' "' ''•' P^^ ^^"^^ ^^'^ -"^-- day l-^or- ers d7,397 or 5.3 per cent, temporary employees, and 386,557, or 64.3 per cent, permanent employees. The sources of revenue of the pension funds are as follows: Contributions of the members, namely, entrance fees deducted from the salaries of employees at the time of their appointment the amount to be determined by the constitution of each fund; monthlv deductions of 6 per cent from the earnings of the employees no salary bemg considered as above 2,400 rubles ($1,236) for the purpose of this provision; 10 per cent deductions from the si)ecial premiums and awards granted; m case of increases of salaries, the difference between he new and old salary for the period of three months; and additional voluntary payments of the members The contributions from the railway company, namely, penalties mposed upon the employees by the company; net income from the sale of unclaimed baggage and freight after deducting the accmed railway charges; payments from the railway compAny due to its employees and unclaimed for 10 years. The other sources of the fund proper are as follows: Interest on deposits and investments; profits from financial operation; money owed by the fund to its members or their families and unclaimed for ^^•f ^''"i ?*^'^ contributions and accidental revenues. In addition the railway company may transfer to the pension fund the fo lowing sources of revenue: Interest upon advance payments of salary and loans made by the railway company to its employees; rental for right of placing advertising matter, and selling newspaper^ and books m the railway stations; ami the unclaimed dividends on stocks and mterest on bonds of the railway companv. In addition ttie mmistcr of ways of communication, in conjunction with the mimster of finance and the state comptroller may require, if they in f -K ^""^'^^^^^ }^^^ ^^^ ^^ilw^y company pay to the fund monthly contributions not m excess of one-half the total income from the 6 per cent monthly contribution of the employees CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2263 The income of the pension fund from these numerous sources is to be distributed as follows: The entrance fees, monthly contributions, 10 per cent award deduc- tions, and promotion deductions are all credited to the individual accounts of the members and their wives. The income from sale of haggage and freight, from the advertising and newspaper privileges, and the monthly contributions of the railway company are also thus distributed, provided, however, that the trainmen membere be given a larger share than the other employees, that part of this contribution be used to guarantee the widows' share, and that part of these con- tributions may be diverted to the orphans' fund (to be spoken of presently) if the income of that fund be found insufficient. The income from additional payments of members and voluntary con- tributions must be distributed according to the wishes of the persona making them, or in absence of any instructions, according to the provisions of the preceding section. The income from interest on investments remains in the fund to which the investments belonged. The income from unclaimed obligations of the pension fund, penalties, interest upon advance payments and salaries, unclaimed payments of railroad companies, and unclaimed interest and dividends goes to form a special orphans' pension and relief fund. Profits from finan- cial operations must be credited to a reserve until it reaches a certain limit established in the by-laws, and the excess in the reserve may be distributed among the individual accounts. Both the members of the pension funds and their families (wives and children) acquire the right to pensions or lump-sum benefits. The actual amounts of either were not named in the law of 1888 as their determination was left to the individual funds on the basis of pension tables to be elaborated later. Three classes of pensions were recognized, ordinary, increased pensions in case of disability, and pensions for injured employees. The ordinary and increased pensions must be determined wdth con- sideration of the following factors: The amount credited to the pensioner's account, his age at entering the railroad service, the length of service, the normal rate of growth of capital, the mortuary tables for railroad employees, members of families of railroad employers, and the conditions of loss of earning ability. The right to the ''ordinary pension" at separation from service is obtained after fifteen years' of service and membership in the fund. The maximum pension, with regard to the accumulated credits, is obtained after thirty years of service, provided the employee is not ' under 55 years of age (in case of trainmen 50 years) . This pension is to be paid without regard to the continuance in the service or sepa- ration from it. After receiving such a pension the employee is reUeved from membership m the fund and relieved from any payments. 67725°— VOL 2— 11 49 2264 REPORT OF THE COMMISSIONEE OF lABOK. A member of the fund suffering from total disability as a result of a grave and mcurable disease requiring constant attendance 3 help after ten years of employment and membership in the fund a qu es a nght to an "mereased pension." In case of disability causeS by injury m performance of duty the employee shall receive a pension to be of greater amount when disability to earn a Uving is comp etT and of asma ler amount when the injured person is disfbled oTy fS •contmuance m railroad service. The excess of the value of pension for mjury over that of the pension or lump sum to which the emZ^ would have been entitled had he left the service on account^ sTck ness must be paid by the railroad company to the fund. Bo"h ck- ness and injury must be certified to after medical examination Tnd the officials of tMs fund may demand reexamination annuaTy ' itl pensions are paid until death, recovei,- from disability, or bss o civil rights m consequence of a judicial sentence If the member be separated from the service before earning a pen- sion euher on account of sickness or because the position is ak,Jshe he IS to receive ma lump-sum payment the total amount accrui^gt^ his credit; when the separation is induce.l by other causes onMhe amount of his own contributions to the fund is returned to h^i When the separation, due to the causes last mentioned, occuS after ten years of service, the constitution of the fund miy prSe As stated above, not only the employee himself, but hi. widow an.l children have a right to a pension, so that the fund may be slid t^ provide not only for old-age and invalidity msurance but is a true pension fund. The rights of the family are created b^ tSe eath o? the member or the pensioner of the fund, loss of civil rights in const quence of a judicial sentence, or unexplained absence (dLppraranceT or oyer one year. In the text following the term "Iw w"t intended to include the wives of men of these two classes. A pension must be paid to the widow of each pensioner and emplo vee wChaJ ttZST^:tT '''''■ "T^— tof the'peiliont tob Ueteimmed b^ the by-laws m accordance with the ages of both the employee and his widow, and the amount of savinc^s This pension is paid to the widow until death, loss of civil rights reinarriage, or the return of the husband from unexplaineHl sfnce 2ZtJ "''' '^'"'"° remarries, ho., pension is transfted to If the deceased had been in ser^^ice less than five years the widow ' IS o receive in a lump sum all the m Fukd, approve,! on June 3 r^Ws^'ai'dSlTrve'^ ''''' °^ ''' P^- ^-^'^ ^°r pSvate menTtS''^ 1° *^-f ^"'^'^ " "^"^^*°'^' ^" *» ^'^P'oye.s and work- men of the state railways and the central offices of these railwa.^ whTrrJ'"^ °^ P"^"*^ superannuation funds (emeri^LyaZZ) serSe a't th'" "T^n ' '° ^'^^ *'*'"^'- >-*'-^' P^-^- entering £ service at the age of 60 or over, persons employed for a term not ineT "l^ '°K ^'''' r^ ^" ^•'''^'"'"^ d""»« the /rst year of employ ment. Alembei-s of private superamiuation funds and 3ons employed one year or under may join it voluntarily and ^re eSed service, 50 years), and all employees havin- reached thLi of rn matter what their length of service. ^ *^°' °° The sources of revenue of the pension fund are the same as for the ension funds of the private railroads; namely, the oblilato t deductions from the earnings of the membe,., 6 per c^nt of ^he:Xl^ salary as imtiation fee, 6 per cent of the monthly salaries asa 3!; rndth^ -/-'>-«-> 10 per cent of the specid prf^and awSs and the difference of salary for three montiis in case of „ro2"on For the purpose of these deductions no salary is considered aTS CHAPTER IX.— WORKMEN 'S INSURANCE IN RUSSIA. 2269 in excess of 2,400 rubles ($1,236) , Voluntary additional contributions may be made, not to exceed in any one year the annual sum of monthly contributions; and if intended to serve to increase the widow's pension, they must not exceed 50 per cent of the monthly contributions. The annual subsidy from the state treasury equals one-half of the annual sum of the monthly contributions of the members. Miscellaneous revenues are the same as in the case of the private railway pension funds; namely, net proceeds from unclaimed bag- gage and freight, penalties collected, income from rentals for adver- tising and newspaper and bookselling privileges on railway stations unclaimed payments due by the fund, contributions, and accidental revenues. Direct revenues of the fund consist of interest and profits. And finally at the time of establishment of the fund, or of acquisi- tion of private railways, the fine funds and other funds and sums are added to the general pension fund. The distribution of the various revenues is somewhat simpler than in the case of the private railway pension funds. The obligatory contributions of the members are credited to their individual accounts. The miscellaneous revenues (except the benevolent contributions* when the object is designated) and the fine and other funds trans- ferred at the beginning shall constitute a special fund for payment of benefits and pensions to children and oi-phans of membere and pen- sioners. From the interest on investments owned by the pension fund, the various funds are credited with 4 per cent per annum, and the remainder, if any, is transferred to a surplus fund. The monthlv subsidies of the treasury are used, first, to cover any existing deficits; then, to swell the children and orphans' fund until it is brought to the full computed value of its obhgations; of the remainder, amounts equal to one-half of the monthly contributions of the married male members are credited to personal accounts of the wives; what is left after that is distributed among the accounts of the members proi)or- tionately to their monthly contributions. The surplus formed as indicated above is used to meet deficits and certam other payments which will be mentioned later- when it reaches 10 per cent of the computed value of all obligations the revenues due to the surplus are diverted into other channels- when the surplus falls below that level it agam claims these revenues All the amounts of the pension fund must be invested in govern- ment bonds, government guaranteed securities, or other specified securities. Benefits paid by the fund may be either pensions or lump sums- and they may be paid only at the time of leaving the fund Two classes of pensions are recognized, ordinary and increased. Ordi- nary pensions are paid at the tune of separation from service after 2270 EEPOBT OF THE COMMISSIONER OF LABOR. The increased pensions are granted in cases of fnii r u-.-. because of a grave and incurable disease after It lea, fif/ "^ of service and membership in the fund *''° ^'"'^ b^mmng o, ,.„ic. .„„ .,„ ^h tl . Lg ktf Z'^I"^!^", reaches the tenth vear whAn if ^^^ 1/ , , service, until it slow,, i ^ tTf^rtl7r7^'ZtlT^c' '''"' itr otXaS 'aSlr 1 f- r- -^ — =- increased pensions ^' "'^ '''''"'''' ''^^^^^^ "^^ ""^'al and pels-r t:i1 cim;irdts;:T?."^'T r ^^^^^ "^^ ^"— ^ be equal to 60 per cent of it f^f V"*^ "^ ^^ •^'"'^ "^ '"''•^i<-« servile, or at the a'of 60 a " i""™."' T"""" *^'^'- ^^ •>-- °f increas;d disabilit.Tenlrmult t e^allo^J/p^Tee^-ft ^n rolsSv^CoLtute^tf^ '\-' ^^ ^'^^ such pension norTa IvTe r^^'^T ^T'''" ''^ *''^ "'""^^h-" or when reaching he ^e of 6^ £ In ^ *T.'" •^"'" "' '''^''' years of service must no be over .50 per'eTo Y/'"'™ ''''' '' annual sala^' or wa-es from ^hlhih V ^^^ *°'""°* "^ ^^^ made durin? the yetTjZZ^te'tlZ 7'^^''-''''' T" 20 years it must not be over fs per cen and «^ oT'"""' ^^''' greater than this amount of wa4 men thA f.T'' ""' exceed the capitalized value oflhe pl^s L tVe X^^^ over at the time when the pension is Sd "" " """' absence. ^ ' *"'"'" ''^^'^ * n.onastery, or unexplained Upon the death (or le^al (]path\ nf «., i , . member of the fund fnt fi ' ° employee who had been a the fund for five years, or was a pensioner of the fund. 'c CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 2271 the widow is entitled to a pension. The amount of this pension is computed by multiplying the amount accumulated to the credit of the widow by a coefficient depending upon the ages of both husband and wife at the time of granting the pension, which coefficient is shown in a separate table. The amount of accumulated widows* credits is computed annually, by adding to the credits of the last year (derived from the treasury's monthly contributions) the sum of accumulated credits of all preceding years with ''interest;'' this interest, like in the parallel case of the members' credits, is in reality an arbitrary coefficient of growth depending for the first five years of membership upon the age of the wife, and for the following years upon the ages of both husband and wife, and is shown in two elaborate tables. If the employee marries while in service an amount equal to one- half the sum of his obligatory monthly deductions from pay, with- out interest, is credited to his wife. The total ])ension of the widow must not exceed two-thirds of the husband's pension. When the accumulations reach this level further credits to her name are dis- continued. The widow's pension is paid until death, remarriao-e entrance into a convent, or return of the husband from unexplained absence. When the parent receives the so-called increased pension for com- plete invalidity, the children from a marriage consummated before the pension began are also entitled to pensions of the followmg amounts: One child receives 3 per cent of the average earnings of the disabled parent, after 10 years of service, and 0.1 per cent "for each additional year of service, with a maximum of 5 per cent after 30 years of service. Allien two children are living they receive together IJ times as much as one child, three children 2} as much, four chil- dren 2§ tunes as much, five children 3 times as much, sLx children 3i times as much, and seven or nine children 3 J times as much. In any case each child's pension must not be over 100 rubles (S51.50) per annum. In case of the death (or legal death) of a pensioner or of one who has been a member of the fund for 10 years, one child receives 5 per cent of the average earnings for 10 years of service, and an additional i of 1 per cent for each additional year, with a maximum of 15 per cent after 30 years of service. When more than one child remains the same proportions are observed as in the case of an mvahd parent. The maximum pension for each child must not exceed 200 rubles ($103), and for all children, 40 per cent of the average earnings. \\Tien both parents are dead the pensions to children are increased by 50 per cent. Children of a female em- ployee, when the father is alive, may receive pensions only in case the father is totally disabled and when he does not receive any 2272 REPOET OF THE COMMISSIONER OF LABOR. benefits from the pension fund. In addition chil,lren are entitle,! The children's pensions are paid until the age of 18 (excent wl,.™ «^« 1 • J 1 ^ '^^''' marriage before that ap-e cloAth unexplained absence lo-sum payments consist of the accumulations ToZcrMito the employee, and his wife, if she be still «liv« vn. ■ 10 years 25 per cent, after 11 years 40 per cent «ft«! io !l CHAPTEB IX. — WOBKMEIf's INSUBANCE IN EUSSIA. 2273 before reaching the age of 60 years the accumulated credits are paid out to their legal heirs. In addition to the old age, invalidity, and death insurance, which are the proper functions of the fund, it is also made the financial agent for certain accident pensions. If the member is granted such accident pension from any source at the time of his separation from service, this pension must be paid by this fund, but simultaneously, the capitalized value of such pension (minus the capitalized value of any pension or lump sum to which the injured person is entitled under the law) is paid over to the pension fund. This rule applies also to pensions to survivors of an employee killed in an accident. When, however, the pension for the injuiy is smaller than that to which they would be entitled from the pension fund, the latter greater pension is paid. Since the various amounts of pensions all depend upon the length of service, the methods and rules of computing these are important, especially with regard to noncontinuous service. These rules are . quite comphcated, but their general intent is that in case of inter- rupted service the length of service of the preceding periods may be counted in, provided the employee is in good health and makes good the financial obligations which he would have to meet if his services were not interrupted. On the other hand, the funds reassume those obligations toward the member, which might have been canceled by his premature separation from service. The same principles apply to the previous years of service for a private railroad. When a rail- way possessing a pension or savings and reUef fund is acquired by the State the conditions of transfer of members must be specially pro- vided for. The administration of the fund is in charge of the state railway office of the Ministry of Ways of Communication. The following institutions were established: The general committee for the hind, with a central office attached ; special committees for the individual railway systems, with local oflices attached. The general committee consists of a chairman and four members appointed by the minister of ways of communication. The number of the members of the local committees is determined by the central railroad office in accordance with the number of employees, but must not be under six. One-third of the membership is appointed by this office, and the others are elected by the membership of the fund. The director of the road is the chairman of the local committee. A special local committee is also provided for the employees of the central state railways office. Both the appointive and elective mem- bers of all committees must be membei-s of the fund, receiving' a salary of not less than 1,000 rubles ($515) per annum. All the mem- 2274 EEPORT OF THE COMMISSIONER OF LABOR. bers of the committee serve without remuneration. Tlie local com- mittees keep the accounts of the members within their jurisdiction, supervise the regular payments of all dues and incomes, and grant pensions and subsidies, while the general committee controls the funds, their accounting and investment, supervises the decisions of the local committees, and makes necessary changes, prepares the statis- tical and other reports, keeps the accounts of the pensioners, hears complaints and appeals from the decisions of the local committees, examines their accounts, etc. The decisions of the general com- mittee may be appealed to the minister of ways of communication. The entire expense of the administration of the pension fund is met by the state treasurv. STATE RAILROAD EMPLOYEES^ OLD-AGE PENSION FUND LAW OF 1903. On the same day in which the fundamental Kussian workmen's accident compensation act was approved, June 2 (15), 1903, a new law was promulgated for the old-age and invalidism pension fund of the employees of the Russian state railways, to go into effect January 1, 1904. Nearly nine years had elapsed since the organization of the fund, and the reports of the financial operations of the fund, coupled with severe losses from the depreciation of securities in which the assets were invested, showed a condition which was not altogether satisfactory and necessitated the revision of the regulations, mainly for the financial organization of the fund. The new law is extremely complicated, containing detailed regulations as to the organization of the numerous accounts and funds into which the pension fund is divided. It is sufficient here to point out the main changes as com- pared with the older law. The rules in regard to membership were left practically unchanged. The same is true of the sources of revenue of the fund, except that a few minor sources were added to the long list of miscellaneous reve- nues, constituting an indirect subsidy from the State. These addi- tional sources of revenue are: Salaries imclaimed by employees of the state railways for a period of ten years, the proceeds from the sale of grain sweepings from station platforms and warehouses, and the income from buffet and restaurant privileges. As would appear from the statistical data in a subsequent section, only the last men- tioned amounts to a considerable sum. The distribution of the revenues among the various accounts has been somewhat changed by the establishment of the state treasury subsidy fund in addition to the members' personal accounts, the children and orphans' fund, and the surplus. The regular contribu- tions of the treasury, which are equal to one-half the members' con- tributions, go to this fund, and it is used to cover deficits in other accounts, to increase the pensions of persons leaving the service CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2275 because of invalidism, and to pay the pensions of widows of members with less than ten years' membership ; the remainder is to be distrib- uted among the members who have been over ten vears in the fund and among their wives. The most important financial measure consisted in granting to the pension fund a subsidy from the state treasury amounting to 10,000,000 rubles ($5,150,000), to be paid in annual installments of 450,000 rubles ($231,750), while the remainder is entered in the assets of the fund as a debt of the state treasury bearing 4 per cent interest. The distribution of this subsidy among the various funds was left to the minister of ways of communication, the minister of finance, and the comptroller of the treasury, the law demanding that part of it go into the personal accounts of members and part into the state treasury subsidy fund. Through this measure the pension accounts of the entire membership were materially improved. The rules in regard to the payment of pensions and benefits have been considerably changed, but as they are very complicated no attempt is made to give here a detailed analysis. In brief, the members are entitled to normal pensions, increased pensions, or lump-sum benefits, which are paid only at the time of leaving the fund, though not necessarily the service. Normal pen- sions are paid after at least 15 years of membership and increaseil pensions in case of complete disability after at least 10 ^^ears of service, and these pensions are computed according to special tables based upon mortality and disability tables and the personal accu- mulated accounts. In no case must the pension exceed the salary during the last year of service, and any excess is capitalized. These pensions are paid until death, and in case of the increased pensions until recovery, when the normal pension is substituted. Persons discontinuing membership in the fund before having acquired a right to a pension receive the accrued values of their accounts and also those of their wives. But if the employee is forced thus to leave the service and the fund because of complete disability, he receives in addition to his accumulated account an additional bonus from the state treasury subsidy fund, equal to one-half the average monthly salary during membership for each year in the service. This is a new provision for the benefit of the membership, introduced by the law of 1903. Widows' pensions are granted to widows of members dying after 10 years of membership, widows of pensioners, and of such employees as have taken out capitalized values of their pensions but have left the accounts of their wives in the fund. The value of their wives' accumulations and that of their pensions are computed according to special tables, depending upon the ages of husband and wife, and also on mortality of railroad employees' wives. 2276 EEPOBT OF THE COMMISSIONER OF LABOR. CHAPTER IX. — WORKMEN S INSURANCE IN RUSSIA. 2277 If a member of the fund marries after 10 years of membersliip his wife is immediately credited from the treasury subsidy fund witJi an amount equal to that which would have accumulated to her account if she had been married from the beginning of her membership. The widow's pension must not exceed two-thirds of the maximum limit of the member's pension, and if her account exceeds the capi- talized value of tlmt pension the difference is paid out to her in a lump sum. The widow's pension is paid until death or remarriage. Any voluntary contributions which had been made by the husband to her account are paid out to her at the time of remarriage. If a member dies before completing ten years of membership his widow receives half of her husband's account (the entire account if no children survive), any voluntary contributions which may have been made in her favor, and a bonus equal to the one which he would have received were he forced to leave the service because of complete disability (one-half the average monthly salary for each year of service). No pension or benefit rights are acquired by the wife who has mar- ried the employee after he was granted a pension. Children's pensions have also been considerably modified. When the parent receives the increased pension for com])Iete invalidity each cliild is entitled^ during the life of that parent to one-twelfth of the parent's pension, but the total for all cliildren must not exceed one-fourth. After death of a male employee who was a member of the fund for less than 10 years the cliildren receive lump-sum benefits equal to one- sixth of the average monthly salary of the parent for each year of service. In addition to this they receive half the account of the parent, and where no widow survives the entire account of the father. If the deceased parent held membership in the fund for 10 years or more, each child receives one-sixth of such pension as the parent would be entitled to if leaving service because of complete disability; if the deceased parent was receiving an increased pension at the time of death, then one-sLxth of such pension; the total for all children in either case must not exceed one-half of such pension. Children of deceased female employees, with father living, receive a pension only in case of the father's disability. Orphans' pensions are 50 per cent greater than when one parent survives. If both parcmts were in the state railway service cliildren receive their pensions at death of the father, even if the mother remahis in the railway service. In case of the death of both parents the orphans receive the larger of the two pensions to which they were entitled. At the remarriage of the widow the children receive her share, but the combined total must not exceed the limit established for orphans. The general conditions governing the payment of pensions to children remain the same as they were established in the law of 1894. The same is true with regard to the rules concerning capitalization of pensions, the payment of pension for injuries, the methods of com- puting the length of service, the adjustment of accounts in cases of reestablishment in service after resignation, methods of business procedure, and methods of administration of the fund. The redistribution of the 10,000,000 rubles ($5,150,000) granted by the treasury was effected in accordance with special regulations published December 24, 1903 (January 6, 1904), and February 4 (17), 1904. A special fund of 200,000 rubles ($103,000) was also created for granting benefits to persons forced to leave the railway service on account of temporary sickness requiring treatment. FINANCIAL AND STATISTICAL DATA. The publication of the pension statistical data in 1890 made possi- ble the organization of fund^' on private railroads under the law of 1888. At the same time the liquidation of the funds not conforming to the demands of the law was undertaken by the Mnistry of Ways of Communication according to an imperial order promulgated on the same day on which the railroad pension law was approved. Fourteen pension funds, established under the old principles, existed at the time. An actuarial examination of these fourteen funds showed that only three, organized with some regard to actuarial science, were found solvent, and the other eleven were financially unsound. In the case of an important railroad fund, for instance, the assets on January 1, 1893, were 1,700,000 rubles ($875,500), while the obligations, computed on an actuarial basis, amounted to 5,500,000 rubles ($2,832,500). In the fund of another railroad the assets and obligations were 1,050,000 rubles ($540,750) and 4,823,000 rubles ($2,483,845), respectively. The liquidation in almost all cases was accomplished by means of an organization of a new fund in conformance with the law and tables of 1888 ; and several railroads contributed large amounts to the existing assets of the pension funds to straighten out their finances. Seven of these railroads organized pension funds, while four preferred the organization of savings-benefit funds. Altogether 16 pension funds and 7 savings-benefit funds were organized in conformity with the law of 1888. Subsequently several of the railroads which had organized these funds were purchased by the State. By an order of the Government, approved !Mar 26 (June 7), 1895, in case of five railroads the pension funds were joined with the State Railway Employees' Pension Fund, v.hile the pension fund of the southwestern railroads and the savinors-benefit funds of the 2278 REPORT OF THE COMMISSIONER OF LABOR. CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 2279 Nikolai Railroad (St. Petersburg-Moscow Railroad), the St. Peters- burg-Warsaw Railroad, the Moscow-Nizhnii-Novgorod Railroad, and the Moscow-Kursk Railroad were left undisturbed provisionally for 10 years. In an official publication of the Ministry of Ways of Com- munication («) for the year 1900 the statement is made that in the beginning of 1905 there would be only one central pension fund for the employees of all state railroads, but the reports for 1906 and 1907 still show the individual existence of the one pension fund and four savings-benefit funds of the five railways mentioned. A statistical study of the activity of all the railroad funds prewents considerable difficulties because of the lack of necessary statistical information. The publication of the annual statistical reports as to the membership of all funds was recently suspended by the min- istry because of a contemplated change in the organization of this statistical service, and the latest report published refers to January 1 , 1903. For the financial operations of all these funds reports are available only for 1904 and 1905; and tke latest available information for the mileage and total number of employees refers to the end of 1905. It is possible, therefore, to give only a more or less complete statement for all railroad pension funds for 1904 and 1905, while for the State Railway Employees' Pension Fund (which does not include all the state railways, as explained above), a more complete statistical presentation is possible. MILEAGE AND EMPLOYEES OF RAILROADS AND MEMBERSHIP AND ASSETS OF BENEFIT FUNDS FOR SPECIFIED YEARS. BY CLASS OF FUND. [Source: Svodnye balansy penslonnykh i sberegaterno-vspomogaternvkh Kass dieistvuiushchikh n» russkikh zheleznykh dorogakh, 19()5 and 1906. Statist ika sluzhashchikh na zhelezuvkh dorogakh, uchastnikovj)ensionnykh i sberegaternovspomogatelnykh Kass. 1903. Statietlcheski Sbornik Mini»- terslva Putei Soobshchenia. Vypusk 89. Zheleznyia dorogi v 1905.] Mileage, 1905. Number of em- ployees, 1905. Member- ship, 1903. Assets. 1905. 1903. State railway employees 18,650 392, 788 151,795 $:^2, 115, 249 $35,672,960 Independent pension funds: State railways 4,597 11,108 85,008 193, 267 45,969 84,732 12, 767, 752 18,981,718 13,737,638 20,645,130 Private railways Total 15,705 278,275 130, 701 31,749,470 34, 282, 768 Total i)ension funds 34, 3.55 671,063 282, 49() «3, 864, 719 69.955,728 Savings benefit funds: State railways 2,360 908 77,861 5,524 47,456 944 11,420,274 475, 485 12,131,595 533, 819 Private railways Total savings-benefit funds 3,268 83,385 48,400 11,895,759 12,665,414 Grand total ^ 37,623 754,448 . 330,896 75, 760, 478 82,621,142 As the data in the table refer to different years, it is not possible to make exact comparisons; but it appears that (with the exception of a few small local, mostly narrow-gauge roads) all railroads are provided with either pension or savings-benefit funds, and that about nine-tenths of the railroads, judging by mileage or by the number of employees, have pension funds, and only a few railroads (three large state-owned railroad systems and a few very small privately owned railroads) still have savings-benefit funds. Gradually the savings funds of these three state-railroad systems will be absorbed into the central State Railway Employees' Pension Fund, and all railroads will eventually be provided for in a uniform way. A comparison of the membership of all the funds with the total number of employees shows that less than one-half of the employees hold such membership ; but the class of the employees must be taken into consideration. PERMANENT AND TEMPORARY EMPLOYEES AND DAY LABORERS ON RUSSIAN RAILROADS IN 1905. [Source: Statisticheski Sbornik Ministerstva Putei Soobshchenia. Vypusk 89. Zheleznyia dorogi v 1905.] Class. Permanent employees Temporary employees Day laborers Total Number. 404, 593 43,231 309,788 757,612 Percent. 53.4 5.7 4a 9 loao The day laborers are mainly unskilled laborers employed in con- struction work, and they do not come within the scope of the pension system. The total number of permanent employees in 1905 was 404,593; in 1904 the number was 386,557; and in 1903 it was 368,266. The figures for 1903 and 1904 did not include about 5,000 permanent employees of the so-called ''local" railways, which are reported separately from the other railroads. The total membership of the funds in 1903 was 330,896. For the statistics of membership of all the funds data are available for 1898 to 1903. In the table following the membership is shown by occupations. It has grown rapidly from 242,819 on January 1, 1899, to 330,896 on January 1, 1903. Among the occupations are included ofHce employees, track walkers, telegraphers, trainmen, and ordinary workmen and watchmen. 67725°— VOL 2—11- -50 I I « 1 a Minister.? de^ Voies de Communication. Administration des Chemins de de la Direction du Compte des Pensions. St. Petersburg, 1900, p. 13. Ferdel'Empire. Recueil 2280 REPORT OF THE COMMISSIONER OF LABOR. MEMBERSHIP OF ALL RUSSIAN RAILROAD PENSION AND SAVING 8- BENE FIT FUNDS, BY OCCUPATIONS, 1^ TO 1903. [Source: Ministerstvo Putei Soobshehenia. Upravlenie zhfleznykh dorog. Statistlka sluthashchikh na zheleznykh dorogakh, uchastnikov pensionnykh i sberegatelno vspomogatelnykh kass IS99-1903.) Occupation. OflBce employees: G eneral administration Other ollices: Higher officials Other oflBce employees Other nontechnical employees Care of roads: Chiefs of sections Track walkers Traffic and telegraph: Station masters Telegraphers and signalmen. . Couplers Switchmen Trainmen Engineers and firemen Oilmen Workmen and watchmen Total Membership for year ending January 1— 1899. 14,940 2 9 32 3 62 8 11 5 21 22 18 5 24 .002 .272 .707 4iiO 022 «i27 .102 210 .773 530 .424 ,5;)9 242. 819 1900. 16,239 2.212 10.299 35,901 3.518 65,086 9,793 12.769 5,623 23,272 25,285 20,560 5,980 26,406 1901. 17,611 2,321 10,845 38,.2it4 3.670 67,9)0 10,8«fi 13,696 6,127 25,437 28,329 22,742 6, m\ 21, bib 203,005 281,908 190*?. 20.919 2,477 11,769 41,815 4.006 72.927 11.905 15.385 6,773 28,578 30. ()27 24.983 7,526 31,066 310, 776 1903. 22,5S8 2,512 12,567 44,864 3,850 77,:«4 11,782 17,147 6,534 31,070 31,717 26, .338 7.763 34,830 3.K),896 The next table shows the membership, by sex and marital condi- tion, and also the number of children. As the widows and orphans are also protected by these pensions and, in a lesser degree, by the savings-benefit funds, an effort has been made in this table to com- pute the total number of persons protected by these funds, by adding to the membership the total number of wives and children. The husbands of married female employees are not included, since they are provided for only in exceptional ( ases. Within four years the total number of persons so protected lias increased from less than three-quarters of a million to nearly a million persons: NUMBER OF PERSONS PROTECTED BY THE PENSION AND SAVINGS-BENEFIT FUNDS OF RUSSIAN RAILROADS, BY SEX AND MARITAL CONDITION, 1H99 TO l'>03. {Source: Ministerstvo Putei Soobshehenia. Upravlenie zheleznykh dorog. Statistlka sluthashchikh na zheleznykh dorogakh, uchastnikov pensionnykh i sberegatelno vspomogatelnykh kass 1S99-1903.J Sex and marital condition. MALE MEMBERS Single Married With children Without children Widowed With children Without children Total male members With children Without children Persons protected on December 31— 1899. . 1900. 1901. 1903. 1903. 49,210 55.308 61,736 66.665 71,867 164.646 176, 184 191,359 207,158 224,274 124, 8.53 133,013 143,508 155. im Hi7,777 39. 793 43, 171 47,851 51.819 56.497 3.942 4,219 4,48<) 4,747 5.096 2.295 2,463 2,624 2,747 2.953 1.647 1,756 1,862 2,000 2.143 217. 798 235,711 257,571 278. 570 301,237 127.148 135.476 146, 132 158. 086 170,730 90,660 100,235 111,439 120,484 130,607 CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2281 NUMBER OF PERSONS PROTECTED BY THE PENSION AND SAVINGS-BENEFIT FUNDS OF RUSSIAN RAILROADS, BY SEX AND MARITAL CONDITION, 1899 TO 1903- Concluded. Sex and marital condition. FEMALE MEMBEBS. Single Married With children Without children. . Widowed With children Without children. . Total female members. With children Without children.. Total members (a) . Members' wives. . . Children Total persons protected by the pension system(*>) Persons protected on Decern l)er 31 1899. 3,820 18,212 14,665 3,647 1,366 924 442 23.398 15,589 7,809 241.1% 164. 646 335.29ti 741, 138 1900. 4.227 18,906 15, 176 3,730 1,468 963 505 24.601 16, 139 8,462 1901. 1902. 4,689 5.227 19.885 21,025 16,048 16,903 3.837 4.122 1.523 1,596 981 1,019 542 577 26,097 27.848 17,029 17,922 9,068 9,926 1903. 5.754 22.187 17.864 4. 1. 1. .323 718 .as9 629 29.659 18.953 10.706 260.312 176, 184 356.794 283,668 191.359 380,075 306.418 207,158 406,524 330,896 224,274 432.962 793,290 855,102 920,100 988,132 o These totals do not agree with the totals of the preceding table; the figures are given as shown in the origmal reports. b The husbands of female employees, who are entitled to pensions only undw exceptional circumstances, are not included. ^ r w. The movement of membership is shown by the following table, which gives the number of admissions and the loss of membership by death and all other causes. Changes in the membership are found to be very great, amounting to over 20 per cent in some years. Most of these employees who leave the service have been in the service a short time only. In 1902, of 50,621 separations 27,233, or 54 per cent, took place before the expiration of a full year of service, and 16,136, or 32 per cent, were in the service over one year but less than five years; thus a total of 86 per cent were less than five years in service. As persons leaving the service so soon are in the majority of cases entitled only to much-reduced amounts of benefits or repayments of deposits, the permanent employees correspondingly profit by such shifting in the persoimel. CHANGES IN MEMBERSHIP OF THE RAILROAD PENSION AND SAVINGS-BENEFIT FUNDS, 1899 TO 1902. [Source: Ministerstvo Putei Soobshehenia. Upravlenie zhelrnykh dorog. Statistlka sluzhashchikh n» zneieznykh dorogakh, uchastnikov pensionnykh i sberegatehio vspomogatelnykh kass 1899-1902.] Year. 1899. 1900. 1901. 1902. Member- ship at begin- ingof year. 242, 819 203,005 281,905 310, 776 New members ad- mitted. 68,119 73,331 77,522 70,741 Loss of membership. ^By death. 1,791 1.964 2.076 1,979 Other reasons. 48,835 52, 956 50,933 48,642 Total. 50.626 54,920 53,009 50,621 Increase during year. 17.493 18.411 24.513 20,120 Total at end of year, (c) 260.312 281.416 306.418 330,896 ar^ give?iL" ho^^ £'th?orgL\7«port! °^«"^^"^^P ^^ ^^« ^^^'^^^^S «' ^he year foUowing; the figures I 2282 REPORT OF THE COMMISSIONER OF LABOR. The causes of separation from the service are shown in the follow- ing table. Nearly 70 per cent are found to have resigned voluntarily, while about 16 to 18 per cent were removed by the administration; the cases of death by accident and disability by accident are very few; cases of death through other causes and disabihty due to illness are more numerous, but together they do not much exceed 8 per cent; as only these cases give rise to exceptional benefits, the permanent employees derive considerable profits from the frequent changes in the body of employees. CAUSES OF SEPARATION FROM SERVICE OF RAILROADS, 1899 TO 1902. [Source: Ministerstvo Putei Soobshchenia Upravlenie zhel/,nykh dorog. Statistika sluzhashchikh na zneieznyJcn aorogakh, uchastnikov pensionnykh i sberegatelno vspomogatelnykli kass 1899-1902.] Year. Death from— Disability or disease caused by- Posi- tion abol- ished. Ad- minis- trative order. Super- annua- tion. En- tered mili- tary serv- ice. 599 920 592 610 Trans- ferred to day labor. Volun- tarily re- signed. Cause un- known. Trans- ferred to other roads. Total. Acci- dent. Other causes. Acci- dent. Other causes. 1899... 1900... 1901... 1902... 147 185 143 96 1,644 1,779 1,933 1,883 109 65 74 45 2,620 2,492 2,341 2,317 552 575 1,011 587 8,809 9,488 8,917 8,462 281 349 449 497 709 484 650 721 34,907 38,305 36,493 35,219 71 42 86 9 178 236 320 175 50,626 54,920 53,009 50,621 The combined assets of the railroad pension and savings-benefit funds are considerable, exceeding $82,400,000 on January 1, 1906, while the annual growth was over $6,695,000. Nearly one-half (43.2 per cent) of these assets on January 1, 1906, belonged to the State Railway Employees Pension Fund, 16.6 per cent to the independent pension funds of state-owned railways, and 14.7 per cent to the savings-benefit funds of state-owned railways, so that 74.5 per cent of the assets are under direct state control. The bulk of these assets is invested in various securities. Thus on January 1, 1906, the amount so invested equaled $71,090,316; of this $9,383,314 or 13.2 per cent was placed in government bonds, $6,356,042 or 8.9 per cent in state-guaranteed bonds of private railroads, and $55,344,651 or 77.9 per cent in bonds of mortgage banks, while only $6,309 were invested in railroad stocks. The only other item of importance is the debt of 10,000,000 rubles ($5,150,000) of the state treasury to the State Railway Employees' Pension Fund, which, with the deduc- tion of payments made and with accruing interest, amounted, on January 1, 1906, to 10,438,000 rubles ($5,375,570). The table following is a summary of the liabihties of the funds. The most important is the fund of individual members' accounts. These are made up principally of the members' personal contributions, interest on these contributions, and a few other minor sources. Next in importance is the wives' account fund. This is also made up of in- dividual accounts, consistmg principally of the regular contributions CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2283 of the state or railroad company and voluntary contributions by the members for the benefit of their wives' accounts. These accounts are used for paying pensions to widows of members dying in service. Closely related to this is the third fund in the list— that of the -pensioners wives. This fund is formed by transfer of the accounts of the wives from the preceding fund at the time the employee is pensioned, and it is designated to pay pensions to widows of the pensioners. The next three accounts represent the capitaHzed values of pensions granted to members, to widows, and to orphans; the nec- essary amounts being transferred from the respective funds. The orphans' fund is intended for payment of pensions to orphans in case of death of their parents. The amount converted to this fund must be equal to the probable obligations, and is computed from the great volume of actuarial data in regard to the ages of the members and their wives and the number and ages of children. A great many of the miscellaneous revenues are diverted into this fund — fines and penalties, unclaimed salaries, the revenue from restaurant privileges (on the state fund only), and the additional necessary amount from the profits of the fund and even the railroad company's contributions. The reserve is formed from the profits of the fund until it reaches a definite proportion (ranging from 5 to 10 per cent) to the standing obligations to the members, wives, children, pensioners, widows, and orphans. The fund of unclaimed money due to ex-members is kept separately, because when such money is not claimed within ten years it reverts to the orphans' fund. The remaining liabihties consist mainly of special accounts for special benefit purposes, or actual debts of the funds to one another, or other debts. LIABILITIES OF THE PENSION FUNDS OF R.ULROADS. (Source: Ministerstvo Putei Soobshchenia. Upravlenie zheleznykh dorog. Upravlenie dielami Zhelez- nodorozhnavo Pensionnavo Komiteta.— Svodnve Balansy Pensiounvkh i Sberegatelno-vspomoeatelnvkh Kass, dieistvmushchikh na russkikh zheleznykh dorogakh, 1905, 1906 ) *- & / January 1, 1905. January 1, 1906. Accounts. Central state railway pension fund. Inde- pendent funds of state- owned railroads. Independ- ent funds of private raUroads. TotAl. Central state railway pension fund. Inde- pendent funds of state- owned railroads. Independ- ent funds of private rauroads. Total. Members Members' wives Members' wives reserve Pensions: Old age Widows Orphans . . . Orphans' fund. Reserve Unclaimed ' All other $18. 366, 449 3,204,888 125,978 165,216 118,480 70,448 1,914,119 1,844,885 360,188 5,944,598 $7,124,216 2,084,841 158,754 1,255,971 900,190 250,914 245,085 405,490 89,441 252,849 $11,028,683 2,930,652 143,698 1,354,068 680,149 339,012 760,434 770,364 273, 125 701,534 $36,519,348 8,220,381 428,430 2,775,255 1,698,819 660,374 2,919,638 3,020,739 722,754 6,898,981 $19,841,750 3,397,760 132,259 221.711 147,704 84,746 2,174,848 2,343,585 636.728 6,691,869 $7,705,770 2,227,165 175,246 1,346,575 959,535 261,617 237,735 441,756 135, 166 247,073 ! $12, 236. 839 $39, 784. 359 3,208,099; 8,833,024 1 148,923 456,428 1,432.853 3,001.139 726.795' 1,834,034 352,646; 609,009 777,512| 3,190,095 516,185 3,301,526 437,316 1,209.210 707,962| 7,646,904 Total.... 32,115,24912,767,751 18,981,719 63,864,719 35,672,960 13,737,638 20,545,130 69,955,728 2284 KEPORT OF THE COMMISSIONER OF LABOR. The organization of the savings-benefit funds is very much simpler. The savmgs fund is formed by all the personal contributions of the members, the interest on investments of this fund, and a certain share of the profits; from this fund the individual accounts are paid to the members at the time of separation from the service and in case of death to the legal heirs. The general savings fund also consists of individual accounts, formed from the railroad companies' montlily contributions an«i such minor sources of revenue as the sale of unclaimed baggage and freight , also t he interest on this fund, a portion of the general profits of the funds, etc. Payments from this fund are made only to the members of the fund at the time of separation from the service, or to their widows or orphans, after a certain length of service. In addition there is a special benefit fund, to which are diverted the fines and penalties, liabilities of the fund unclaimed for ten years, the advertising and newspaper-selling privileges, interest, and a portion of the profits of the general fund. Special benefits are paid from tliis in accordance with the constitution of each savings-ben (^fit fund. LIABILITIES OF THE SAVINGS-BENEFIT FUNDS OF RAILROADS, 1905 AND 1906. ISource: Ministerstvo Putei Soobshchenia. Upravlenie zheleznykh dorog. Upravleaie dielaml Zhelez- noclorozhnavo Komiteta.-Svodnye Balansy Pensionnykli i Sberegatelno-vS)om(Satehiv^ dieistvumshchikh na russkikh zheleznykh dorogakh, 1905 ]'m ] "^^^^^saiw^o-vsponiogaiemyjin Kass, Accounts. Savings fund Genoml benefit fund Special benefit fund All other accounts . . Total 1905. State rail- ways. $6,613,236 3, 186, 038 »«, 743 754,257 Private railways. $271,707 113.658 33.114 7,006 11,420,274 475,485 Total. $6,884,943 3.349.696 889,857 761 , 263 11,896,759 1906. State rail- ways. $6,867,859 3,284.682 869,647 1,109,407 Private railways. $310,454 179.997 -J5. 444 7,925 12, 131, 595 633,820 Total. $7,178 313 3,464 679 905,091 1,117,332 12,665,415 The next table contains a summary statement of the income and expenditures of the pension funds and savings-benefit funds for 1904 and 1905. The various payments of the members are the most impor- tant sources of income. In 1905 the proportions were unusual (m account of the 10,000,000 rubles ($5,150,000) contributed from the state treasury to the state railway fund; thus in 1905 the contribu- tions of the members was only 25 per cent of the total revenues of pension funds, while in 1904 members contributed 41 per cent. The proportions in 1904 for the pension funds and the savings- benefit funds were as follows: 41.2 per cent from meml>ers, 29.6 per cent from employers, 29.2 per cent from financial operations for the pension funds, and 33.6 per cent, 40.5 i)er cent, and 25.9 per cent, respectively, for savings-benefit funds. The savings-benefit funds have no entrance fees, which reduces materially the contributions of the members. Many of the special sources of revenue of the funds are compara- tively trivial. The income from advertising privileges and sale of CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2285 unclaimed baggage is the most important of those specially indicated. The state railway fund and a few independent funds have addi- tional sources of income, such as the restaurant privilege and special subsidies which will be specially mentioned in a subsequent section. The activity of the funds may be gauged from the fact that the expenditure for 1904 was $5,470,913, or, deductmg the loss from depreciation of securities, $4,823,550. Only a small portion of this goes for expenses of administration, less than 4 per cent. As a matter of fact, the expenses of administration of the state railway fund are assumed by the treasury, and those of one large private road (Warsaw- Vienna Railroad) by the railroad company; and eUminating these, the cost of administration was $174,427 out of total expenditures of $2,896,357, or 6 per cent. A further analysis of the expenditures shows that the greatest share of payments made is in the form of lump sums to persons who have not yet earned a pension. This is explained in part by the fact that the fund has existed only 16 years (1888 to 1905) and the number of persons who have earned a pension is comparatively small. INCOME AND EXPENDITURES OF PENSION FUNDS AND SAVINGS-BENEFIT FUNDS OF RAILROADS, 1904 AND 1905. INCOME. [Source: Ministerstvo Putei Soobshchenia. Upravlenie zheleznykh dorog. Upravlenie dielami Zhelez- nodorozhnavo Peiisionnavo Komiteta-Svodnye Balansy Pensionnykli i Sberegatelno-vspomogatelnvkh Kass, dieistvuiushchikh na russkikh zheleznykh, dorogakh. 1905, 1906 J f t, j Item. Members' contributions: Monthly deductions Entrance fees Promotion deductions Premium deductions Voluntary contributions Total Railway contributions and other rev- enues: Annual contributions Inlerest on loans Fines and penalties ..[.. Advertising privileges and news- Saper selling e of unclaimed baggage and freight Unclaimed wages Unclaimed interest on railroad stocks and bonds Contributions Railway companies' payments fw pensions to mjured Other revenues Total Revenues from financial operations: Interest on investments All other financial operations Total Grand total 1904. Pension funds. $3,233,511 307,329 480,576 167,799 20,903 4,210,118 1,592.005 13.057 33,837 45,485 50,287 30,263 2,363 1,574 109,651 1,149,854 Savings- benent funds. $622,292 57,438 24,337 4,931 708,998 Total. $3,855,803 307,329 538,014 192,130 25,834 4,919,116 313,138 3,405 6,809 20,325 5,722 3,515 30 'soo.iig I 1,905,143 16.462 40,646 65,810 56,009 33,778 2,363 1,604 109, 651 1,649,973 3,028,376 ! 853,063 2,966,866 19, 177 539,937 5,042 2,986,043 I 644,979 10,224,537 2,107,040 3,881,439 1905. Pension funds. Savings- \ benefit | Total, funds. I $3,112,171 310,868 400,546 181,411 21,627 $603,816 $3,715,987 310,868 439,910 205.944 24,588 39,364 24,533 2,%1 4,026,623 670,674 I 4.697,297 1,536,746 12.231 64,314 46,240 30.915 24,341 2,415 3,074 109,858 7,576,440 303.008 2.751 14,165 20,841 3.248 13,575 22,016 651 192,870 9,406,574 673,125 1,839,754 14.982 78,479 OT.flSl 34. It .3 37,916 24.431 3,725 109,858 7,769,310 9,979,liS9 3,506,803 24,219 2,727,257 17,630 3,531,022 2,744,887 12,331,577 16,178,084 495. 207 2,684 497,891 1,741,690 3,222,464 20,314 3,242,778 17,919,774 2286 REPORT OF THE COMMISSIONER OF LABOR. CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2287 INCOME AND EXPENDITURES OF PENSION FUNDS AND SAVINGS-BENEFIT FUNDS OF RAILROADS, 1904 AND 1905— Concluded. EXPENDITURES. Item. Lump-sum payments to members and wiaows Members' pensions and capitalized pen- sions Widows' pensions and capitalized pen- sions Orphans' benefits, pensions, and cap- italized pensions Old claims repaid Expenses of administration Other expenises 1904. Pension funds. $1,864,727 663,121 372,460 192,744 212,937 133,585 312,289 Total expenditures Loss from depreciation of investments. . Total expenditures and losses — 3,751,863 381,663 Savings- benefit funds. $842,496 Total. 176,000 40,842 12,340 $2,707,223 663,121 372,460 192,744 388,946 174,427 324,629 1905. Pension funds. 1,071,687 265,700 4,133,526 1,337,387 $2,374,810 923,223 327,043 167, 792 176,819 134,900 974,079 Savings- benefit funds. $591,665 TotaL 4,823,550 647,363 5,470,913 5,078,666 1,412,034 6.491,600 161,238 38,403 46,914 $2,966,475 023,223 327,043 167,792 338,057 173,303 1,020,993 838,220 102,188 940,408 5,916,886 1,515,122 7,432,008 Data are available for the State Railway Employees* Pension Fund from the date of its organization in 1895 to January 1, 1907. The assets at the end of the first year of its operations were $2,575,233, and after 13 years reached $38,565,513. The increase is uniformly continuous, except that during 1904 the increase in the assets was $7,377,676, due to the allowance by the state treasury of 10,000,000 rubles ($5,150,000) during that year, in accordance w ith the rules of June 2 (15), 1903. ASSETS OF THE STATE RAILWAY EMPLOYEES' PENSION FUND ON JANUARY I, 1895, AND 1899 TO 1907. [Source: Ministerstvo Putei Soobshchenia. Upravlenie zheleznykh dorog. Sbornik upravlenia dielaml pensionnoi kassy sluzhashchikh na kazionnykh zhcleznylih dorogakh, 1897. Miiilst6re dee Voles de Com- munication. Administration des Chemins de fer de rEmpire. Recueil de la Direction du Coiuite det Pensions, 1900. Ministerstvo Putei Soobshchenia. Upruvlenie zheleznykh dorog. Otchot pensionnoi kassy sluzhashikh na kazionnykh zheleznykh dorogakh, 1900-1907.] Account. 1896. lUlnl* 1900. 1901. 1902. Members' account $1,693,460 254,841 527,737 16,355,943 1.427,873 1,012,741 35,222 83,259 21,070 167,971 823,415 550,659 $7,745,459 1,740,350 1,132,119 55,159 115,918 32,669 177.955 829,297 543,663 195,258 $9,237,102 2,090,350 1,274,419 84,634 155,863 45,980 193.165 455,173 651.894 220.701 $11,087,370 Wives' account 2,507,827 Omhans' fund 1,417,828 Members' accrued nension account .... 114,778 Widows' accrued uension accoimt 208,050 Reserve pension account of pensioners' 74,082 Unclaimed accounts 51,443 26,492 2iJ266' 222, 49« Reserve : Creditors' account AH other 896.795 902.746 155,743 Total 2,575,233 10,478,153 12,567,847 14,409.282 17 587,715 Account. Members' account Wives' account Orphans' fund Members' accrued pension account Widows' accrued pension account Reserve pension account of pensioners' wives Children and orphans' accrued pension account Unclaimed accounts Reserve Treasiuy subsidy fund Creditors' account •- Another 1903. $12,909,238 2,917,6^7 1,556,217 169,122 266,368 98,893 1904. 1905. 259,716 2,002,182 Total. 1,244,126 158,933 $14,848,358 3,382,602 1,699,001 234, 102 350,531 148,520 322,651 2,391,149 21,582,492 1,244,887 115,772 $18,366,449 3,204,888 1,914,119 165,216 118,480 125,978 70,448 360,188 1,844,885 3,780,461 2,038.276 125,861 1906, 1907. 119,841,750 3,397.760 2,174,848 221.711 147,704 132,259 84,746 636,728 2,343,585 3,966,682 2,629,082 96,105 34,737,573 32,115,249 35,672,960 $21,187,275 3,581,186 2,445,767 179.785 136,810 115,630 97,638 641,317 2.829.628 4.160,258 a, 099, 873 90,348 38,565,513 The reports of the State Railway Employees' Pension Fund do not show any complete statement of income and expenditure. The main sources of revenue and the main expenditures for the years 1900 to 1906 are shown in the table following. Of the secondary sources of revenue, that from renting restaurant privileges is the most impor- tant. That was added after the reorganization of the fund in 1903, so that the chief sources may be classified into three groups — the employees' contributions, the state subsidy, and the interest on invest- ments. In addition to the state subsidy shown, must be mentioned the annual payment of 450,000 rubles ($231,750) in gradual settlement of the assumed debt of 10,000,000 rubles ($5,150,000), wdth interest thereon, while the income from interest on investments is considerably reduced by frequent losses due to depreciation of securities. PRINCIPAL SOURCES OF INCOME AND CLASSES OF EXPENDITURES OF THE STATE RAILROAD EMPLOYEES' PENSION FUNDS, 1900 TO 1906. [Source: Ministerstvo Putei Soobshchenia. Upravlenie zheleznykh dorog. Sbornik upravlenia dielam* pensionnoi kassy sluzhashchikh na kazionnyk zheleznykh dorogakh, 1897. Ministere des Voies de Com- munication. Administration de.s Chemins de fer de I'Empire. Recueil de la Direction du Comit6 des Pensions. 1900. Ministerstvo Putei Soobshchenia. Upravlenie zheleznvkh dorog. Otchot pensionnoi kassy sluzhashikh na kazionnykh zheleznykh dorogakh, 1900-1906.] INCOME. Qass. 1900. 1901. 1902. 1903. 1904. 1905. 1906. Members' contributions: Monthly deductions (6 per cent) Admission fees Promotions $1,284,260 220.«)5 191,403 55,429 4,544 $1,435,204 2m, 105 191,507 58.180 4,934 $1,556,236 237.824 209,607 61.529 5,532 $l.f*3.G44 2.J0.226 206,875 70.701 6,487 $1,555,310 174.914 221,819 70,234 3, 192 $1,582,862 170.387 220,174 72,183 3,550 $1,786,139 22:1.632 227,476 68.312 3,068 Prize-money deduc- tions Voluntary payments. Total 1,756,541 642,130 1,955,930 792. 167 2,070.728 857,818 2,197,933 880.329 2,025,469 777,655 2.049.156 976.573 2,308.627 1,040.446 State subsidy Other revenues: Fines and penalties. . . Unclaimed baggage and freight 59,644 15,075 13,529 51,454 29,578 15,097 35,901 19,505 14,309 33,671 23,211 20,002 27,483 16,318 20,946 123,330 941 2,128 16,888 23,759 22.231 156. 196 14,115 1,311 6,188 17,872 2:J.597 187.042 14.501 3,097 Advertising and newspaper selling privi eges Restaurant privileges. Unclaimed wages Other revenues 11,967 273 2,065 1,473 Total 100.215 537,952 96.402 653,788 71,780 803,714 78.357 972,097 191,146 1,133,820 ZJ4.500 1,267,324 252. '297 1,422,717 Interest on investments. . . EXPENDITURES, Premiums repaid Payments to wives of memljcrs discharged before pensions were earned Members' pensions Widows' pensions Childrens' and orphans' pensions Unclaimed accounts paid . $581, 124 16,300 51,457 $664, 978 24.719 37,897 61,483 $631,566 25.804 45,527 61,235 $747,054 21,002 71.693 9,057 96,767 $801,302 62,625 556.735 150,740 107, 108 $740,221 $1,063,720 39,426 306. 174 149,032 .33. 473 143,792 66.856 442,315 203,138 47.353 341,563 2288 REPORT OF THE COMMISSIONER OF LABOR. The reports of the State Railway Employees' Pension P'und an very incomplete, but they show that the assets are accumulating rapidly. As the latest reports available are for 1906, when only thirteen years had elapsed since its organization, few regular pen- sions have been paid out, and it is difficult to determine as to its solvency or as to the amount of pensions. The reorganization of 1903 and the voting of a subsidy of 10,000,000 rubles ($5,150,000) were caused by an actuarial investigation showing that the reserves did not come up to the actuarial obligations. PENSION FXTND OF THE LIQUOR MONOPOLY. The transformation of the business of Uquor rectifying and most of the wholesale and retail liquor business into a government mon- opoly created a large and growing army of government employees, partly industrial but mainly commercial. As an exi)eriment the monopoly was first introduced in 1895 in a few provinces on the Volga. Through rapid extensions the monopoly in 1901 covered European Russia, in 1902 was extended to western Siberia, and in 1904 to eastern Siberia. On January 1, 1899, the jnonopoly em- ployed over 36,000, and in 1904 over ()2,000, persons. A pension fund for these workmen and commercial employees was established and opened January 1, 1900. This fund follows the general principles of all Russian pension funds. The meml)ers remam masters of thc^ir individual accounts, and may demand the return of their savings upon separation from the service, but pensions only after fifteen years of service. The state treasury, i. e., the employer, contributes an amount equal to one-half of the obhgatory monthly contributions of the members, and there are also other minor sources of revenue, but these additional amounts do not become available until after ten years of service, and then only partially so, and are fully available only after fifteen years. All analysis of the law shows that it closely follows that of the railway pension fund. All employees of the Uquor monopoly must be members of the fund except those who receive less tJian 120 rubles ($61.80) per annum, or wlio are over 60 years old, or who are em- ployed temporarily for not over one year. The revenues are obliga- tory and voluntary contributions of the employees, treasury sub- sidies, interest, and miscellaneous revenues. The obligatory revenues are those which have been found in most other funds; an initiation fee of 10 per cent of the first year's salary, 6 per cent of the earnings, 10 per cent of the special prizes, difTerence in salaries for three months in cases of promotion. The difTerence is found in the larger initiation fees, 10 per cent of the fu-st aimual wages. The treasury grants a sum equal to one-half of the obligatory deductions from CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 2289 wages. Pensions, computed according to the accumulated account and the age, are granted at the time of separation from service after 15 years of service. The member who voluntarily retires from the service within two years is not entitled to any repayments. From the beginning of the third year and before the end of the tenth year he receives his own contributions without interest; after the com- pletion of the tenth year he receives also the interest on his pay- ments, and besides in the eleventh year 25 per cent, in the twelfth year 40 per cent, in the thirteenth year 55 per cent, in the fourteenth year 70 per cent, and in the fifteenth year 85 per cent of the addi- tional amounts credited to his account. A distinct feature of this fund is the provision by which the bachelor or widower Avithout children under 18 receives only 75 per cent of the amount due, though not less than his own contributions with interest accrued. The family of the employee who was separated from the service before having earned a pension has no claim upon the fund, but the widow and orphans of a member of the fund who died while in the service receive pensions, no matter what had been the length of service of the employee. The widow receives one-half of the pension to which her husband would have been entitled; each child under IS years of age, when the mother is living, receives one-sixth of the pension, but all children receive no more than one-lialf the pension. Orphans receive one-fourth of the pension each; but the maximum for all orphans is three-fourths of the pension. The actual pensions of the employee, as Well as of the widows and children, and the capitahzed value of these pensions, are computed according to special tables, which in absence of satisfactory Russian mortahty statistics were prepared from German mortality data. CapitaUzation of parts of pensions in excess of 50 per cent of the annual wages, as well as of small pensions to widows and orphans, were permitted. The general administration of the pension fund is intrusted to a central committee connected with the department of indirect taxation and liquor monopoly, of the Ministry of Finance, which takes care of the general control, of the investments, of the statistics, etc., and regulates the pensions. The chief of the department is ex officio chairman of the committee, and the members are appointed by the minister of finance, primarily from the leading officials of this depart- ment. The local administration is done by provincial committees, presided over by the local chiefs of Excise taxation, and consisting of members appointed by the minister of finance. An annual appropriation of 29,520 rubles ($15,203) is made by the Government to cover the cost of administration of this pension fund. 2290 REPORT OF THE COMMISSIONER OF LABOR. STATISTICS. The table following shows the total number of employees of the liquor monopoly, the membership of the pension fund, and the number and per cent of the total employees in each class exempted from compulsory membership : NUMBER OF EMPLOYEES OF THE LIQUOR MONOPOLY, MEMBERSHIP OF THE PEN- SION FUND, AND NUMBER AND PER CENT OF TOTAL EMPLOYEES IN EACH CLASS EXEMPTED FROM COMPULSORY MEMBERSHIP AT THE BEGINNING OF EACH YEAR, 1901 TO 1906. [Source: Ministerstvo Finansov. Otchiot Pensiomioi Kassy vornonaiomnykh sluihashchikh po kaziounoi prodazhe pitei, 1900-1905.J Total num- ber of em- ploy- ees. Employees not members of pension fund because — Year. Members of pen- sion funcL Receiving less than 120 rubles ($61.80) per an- num. Employed tem- porarily. Over 60 years of age' at tiin« of employment. TotaL - Num- ber. Per cent of total employ- ees. Num- ber. Per cent of total employ- ees. Num- ber. Per cent of total employ- ees. Num- ber. Per cent of total em- ployees. 1.6 1. 1 1.1 10 1.0 .8 Num- ber. Percent of total employ- ee». 1901.... 1902 1903 1904.... 1905 1906....; 1 43,793 61,685 62.612 62,457 62,465 64,628 26,424 42,441 48,922 50,403 49.780 45,025 60.4 68.8 78.3 80.7 79.7 69.7 6,221 6,770 5,957 5,658 5,008 3,766 14.2 11.0 9.5 9.1 8.0 5.8 10,481 11,766 6,926 5,744 7,078 6,315 23.9 19.1 ILl 9.2 1L3 9.8 667 708 732 652 599 562 17,369 19,:t44 13, 615 12, 054 12,«i85 a 19, 603 S9.6 31.2 iL7 19.3 20.3 ;J0.3 a Includes 8,960 (13.9 per cent) lower grade employees, receiving over 120 rubles (l«ll 80) per annum, who declined to be members of the fund, in accordance with the order of December 2 (16), 1905, inaklne mem- bership m the fund optional for these employees. \ n , t. The total number of employees at the time of organization of the fund was about 40,000, and by 1906 had reached 64,628, due to extension of the Uquor monopoly. Within the same brief period the membersliip in the fund has neariy. doubled, increasing from 26,424 in 1901 to 45,025 in 1906. In proportion to the total number of em- ployees the membership in the fund has increased from 60.4 per cent in 1901 to 69.7 per cent in 1906. The exemption from o]>ligatory membership applies to three classes, those receiving a salary of less than 120 rubles ($61.80) per annum, those employed temporarily, for less than one year, and those who enter the service when over 60 years of age, the last group being numerically unimi)ortant. The temporary employees represent the greatest exempted group, but it has rapidly decreased from nearly one-fourth of all employees to h^ss than 10 per cent. The number of employees receiving less than 120 rubles ($61.80) per annum is also gradually decreasing because of an increase in average salaries. From 1903 to 1906 the average annual wages of the male employees have increased from 422 to 453 rubles ($217 to $233), and the wages of the female employees from 332 to 351 rubles ($171 to $181), the average wages of all employees increas- ing from 398 to 423 rubles ($205 to $218). CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2291 The following table shows the membersliip by sex: MEMBERSHIP OF THE LIQUOR MONOPOLY PENSION FUND AT THE BEGINNING OF EACH YEAR, BY SEX, 1901 TO 1906. (Source: Ministerstvo Finansov. Otchiot Pensionnoi Kassy vornonaiomnykh slurfiashchikh po karionnoi prodazhe pitei, 1900-1905.] Year. 1901. 1902. 1903. 1904. 1905. 1906. 21,507 32,484 36,153 36,602 35,125 37,745 85.2 76.5 73.7 72.6 70.1 70.5 Females. 1 Number. Per cent. 4,917 14.8 9,957 23.5 12,769 26.3 13,809 27.4 14,652 29.9 13,280 29.5 Total member- 26,424 42,441 48,997 50,411 49,777 45,025 a Some of these totals do not agree with the sum of the items nor with totals in other tables: the figures are given as shown in the original reports. The marked decrease in the membership of the fund from 1905 to 1906 is explained by the effect of the order of December 2 (15), 1905, which reheved all wage-workers and lower grade employees of the Hquor monopoly from obhgatory membership in the fund, making it optional. Because of this ruhng the membership fell from 79.7 per cent of the total number of employees in 1905 to 69.7 per cent in 1906. The effect of the rule may be seen from the tables showing the com- position of the membership of the fund. Four large groups of em- ployees may be differentiated, the clerical and administrative em- ployees of the central and provincial offices, the salesmen in the liquor monopoly stores, the lower grade employees, and the workmen in warehouses and distilleries. The next table shows the number and per cent in each of these classes. MEMBERSHIP OF THE LIQUOR MONOPOLY PENSION FUND, BY CLASSES OF EMPLOYEES, 1901 TO 1906. [Source: Ministerstvo Finansov. Otchiot Pensionnoi Kassy vol'nonaiomnykh sluzhaschikh po kazionnoi prodazhe pitei, 1900-1905] Year. 1901 1902 I9a3 1904 1905 1906 Employees of dis- tilleries, ware- houses, and lab- oratories, clerks, and bookkeepers. Number. 2.468 3,489 3,561 3,669 3,654 3,678 Per cent. 9.4 8.3 7.3 7.3 7.4 8.2 Salesmen and collectors. Number. Per cent. 19,799 27,514 29,335 29,327 29,690 29,592 74.8 64.8 59.8 58.2 59.6 65.7 Lower grade em- ployees (copyists, watchmen, etc.). Number. 1,704 3,099 3,669 4,038 3,792 2,720 Per ceiA. 6.5 7.3 7.6 8.0 7.6 6.0 Workmen in warehouses and distilleries. Number. 2,462 8,339 12,432 13,377 12.641 9,035 Per cent. 9.3 19. 6 25.3 26.5 25.4 20.1 Total member- ship. a 26, 462 42, 441 48,997 50,411 49, 777 43,025 o This total is not the correct sum of the items; the figures are given as shown in the original report. 2292 BEPORT OF THE COMMISSIONER OF LABOR. The salesmen and collectors constitute from tliree-fifths to two- thirds of the membersliip of the fund, while workmen constituted over one-fourth before the order of December 2 (15), 1905, went into effect, and only one-fifth the following year. This distribution of the mem bership of the fund differs materially from that of the employees, both because practically all of the persons receiving an annual remuneration of less than 120 rubles ($61 .80) belong to the classes of the lower grade employees and wage-earners, and that temporary employment is more frequent in the same classes, as is shown in the table following. PROPORTION OF EMPLOYEES BELONGING TO THE LIQUOR MONOPOLY PENSION FUND, 1901 TO 1906. tSouree: Ministerstvo Finansov. Otchiot Pensionnoi Kassy vol' nonaiomnykh sluzhaschikh po kazionnoi prodazhe pitei, 1900 lyoo.] Class of employees and year. Employees of distilleries, warehouses, and labora- tories, clerks, and l)ookkeepers: 1901 1902 1903 1904 1905 ; 1906 "" Salesmen and collectors: 1901 1902 1903 1904 ■;■"■ 1905 1900 !!!!!!!!.*; Lower grade employees: 1901 1902 1903 1904 1905 '. 190G ;;;;;; Workmen: 1901 1902 1903 1904 1905 i90(i ;;.■; All employees: 1901.." 1902 1903 1904 1905 1900 Number of employees. Memliers of the fund. Total. Receiving over 120 ru- bles (161.80) peraimum. Total. 2,545 3,672 3,613 3,724 3,n8 3,754 20,443 28,187 29,972 29,856 30,260 30,093 3,969 5,366 5,356 5,356 5,377 5,326 16,843 24,460 2:3,671 23,529 23, 107 25,455 43,831 61,685 62,612 C2, 465 62,462 64,628 2,545 3,672 3,613 3,723 3,n7 3,752 20,440 28,185 29,972 29,856 30,260 30,093 3,836 5,240 5,213 6,236 5,259 5,206 10,758 17,819 17,857 17, 992 18, 218 21,811 37,610 54,915 66,(>55 5(5, 807 67, 454 60,862 2,468 3,489 3,561 3,669 3,654 3,678 19,799 27,514 29,335 29,327 29,690 29,592 1,709 3,099 3,669 4,038 3,792 2,720 2,462 8,339 12,432 13,377 12,641 9,035 26,462 42,441 ^8,997 50,411 ^9,777 45,025 Per cent of all em- pJoyees. Percent of employees receiving over 120 ru- bles($61.80). 97.0 97.7 95.8 98.5 98.3 98.0 96.8 97.6 97.8 98.2 98.1 98.3 42.9 57.8 68.5 75.4 70.5 6L1 14.6 34.1 52.5 66.9 54.7 35.7 60.4 68.8 78.3 80.7 79.7 C9.7 97.0 97.7 95.8 98.5 08.3 98.0 96.8 97.6 97.8 96.2 U8.1 98.3 44.4 59.1 70.4 77.1 72.1 62.2 22.9 46.8 69.6 74.4 09.4 41.4 70.4 77.3 S6.5 R8.7 «5.6 74.0 Practically all the employees of the first two groups receive over 120 rubles ($61.80) per annum, while the lower grade employees nearly all receive over this amoimt, yet in 1904, the year of greatt^st membership, 24.6 per cent were not membei-s of the fund. A very large per cent availed themselves of the opportunity oifered by the decree of December 2 (15), 1905, so that by the end of that year only CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2293 51.1 per cent of the lower grade employees retained their membership in tlie fund. The falhng off was still greater among the class termed '^workmen;" in the begmning of 1905, 4,889 received less than 120 rubles ($61.80) per annum, and as many men were employed temporarily, only 54.7 per cent of the workmen and only 69.4 per cent of those recei\4ng over 120 rubles ($61.80) held membersliip in the fund; and so many availed themselves of the opportunity to drop their membership that on Jan- uary 1, 1906, only 41.4 per cent of those receiving over 120 rubles ($61.80), and altogether only 35.7 percentof all the workmen employed remained in the fund. The reason must probably be sought first in the very heavy deductions which are a hardship when the very low rate of wages is considered, and also in the shifting character of the occupation ; for according to the by-laws, a member leaving employ- ment in the liquor monopoly before two years of service loses the accu- mulations credited to his account, including his own contributions to it. As appears from the table following, a great many changes take place in the body of employees, and in the aggregate the losses of such members are considerable. For the three years, 1903, 1904, and 1905, a total of 32,110 persons left the fund. Of these only 1,654 left by death or total disability, 16,645 resigned voluntarily, and 4,311 were dismissed. CHANGES IN MEMBERSHIP OF THE LIQUOR MONOPOLY PENSION FUND, 1900 TO 1905. [Source: Ministerstvo Finansov. Otchiot Pensionnoi Kassy vol 'nonaiomnykh po kazionnoi prodazhe pjtei, 1900-1905.] Member- ship at beginning of year. Admitted during year. Meml>ers lost during year. Year. Resigned volun- tarily. Dis- missed. Position abol- ished. Died. Totally dis- abled. Entered military service. Other reasons. Total. 1900 20, 534 26,424 42, 441 48, 922 50, 403 49,780 8,492 23,432 14,977 9,869 8,495 9,854 1,708 5,095 5,161 5,689 5,420 5,036 528 1,291 1,828 1,639 1,411 1,261 1.31 373 567 467 339 307 119 294 302 373 309 432 52 125 152 156 171 153 40 76 127 132 1,387 591 99 220 24 28 G,229 2,578 7,353 8,357 »,?m 9,121 14,e09 1901 1902 1903 1904 1905 The following table gives the distribution of the membership by sex and marital condition, also including the number of cliildren, and a computation of the total number of persons (members, wives, and cliildren) protected by the pension fund. In 1906 the total membership was 45,025 and the number of persons enjoying the protection of the fund was 150,274, or more than three times the membership. 2294 HEPORT OF THE COMMISSIONER OF LABOR. NUMBER OF PERSONS PROTECTED BY THE LIQUOR-MONOPOLY PENSION FUND, BY SEX AND MARITAL CONDITION, 1901 TO 1906. [Source: Ministerstvo Finansov, Otchiot Penslonnoi Kassy vornonaiomnykh po kaKlonnoI prodazhe pitef 1900-1905.1 Sex and marital condition. MALE MEMBERS. Single Married With children Without children Widowed With children Without children Total male members With children Without children FEMALE MEMBERS. Single Married '. With children Without children Widowed With children Without children Total female members With children Without children ] . ] Total membership Members' wives Children Total persons protected by the pension system (a) I'ersons protected on January 1. 1901. 3.388 17,792 14,002 3,790 367 231 136 21,547 14,233 7,314 1,615 1,674 1,153 521 1,626 1,142 484 4,915 2,295 2,620 26,462 17,792 45,836 90,090 1902. 5,566 26,377 20,317 6,060 541 357 184 32,484 20.674 11,810 4,082 3,298 2,094 1,204 2,577 1,791 786 9,957 3,885 6,072 42,441 26.377 fi6,627 i:i5,445 1903. 6,051 29,552 22,831 6,721 612 373 239 36,215 23,204 13,011 5,714 4,117 2,589 1,528 2,951 2,065 886 12,782 4,654 8,128 48.997 29,552 75,957 154,506 1904. 5,866 30.094 23. 304 6.790 642 400 242 36,602 23,704 12,898 6,193 4,470 2,808 I, mi 3,146 2,166 960 13,809 4,974 8,835 50,411 30,094 79, 255 159, 700 1905. 5.239 29.235 22.862 6.373 651 411 240 35.125 23.273 11.852 400 854 123 731 398 331 1,067 14.652 5.454 9.198 49. 777 29.235 81.140 160. 152 1906. 4,002 27.120 21,268 5,852 623 401 222 31,745 21,669 10, 076 5,523 4,296 2,803 1,493 3,461 2,354 1.107 13,280 5,157 8,123 45.025 27,120 78.129 150,274 o The husbands of female employees, who are entitled to pensions only under exceptional circumstances, are not included. ' The main data in regard to the financial operations are brought together in the table following. Thougli the fund has been in exist- ance a short time only, its accumulations are considerable, growing from 1,869,154 rubles ($962,614) on January 1, 1901, to 12,533,271 rubles ($6,454,635) on January 1, 1906. This is natural, since in the earlier years only a few pensions were paid, and these were small, fifteen years' membership being necessary for a full pension. Wliile the expenditures are formally almost equal to the income, they mostly represent purchase of securities for investments. The income is seen to consist mainly of contributions by members, subsidies from the State, and interest on investment. The expenses, besides the payment of compensation and subsidies, are very small. The totals of the individual members' accounts are also shown, the main sources of growth of these being the 6 per cent salary deductions, but the large initiation fees and the deductions from promotit»ns are quite considerable. The largest deductions in the earlier years were on account of members leaving the service. Deaths claimed only small sums. CHAPTER IX. — WORKMEN S INSURANCE IN RUSSIA. . FINANCES OF THE LIQUOR-MONOPOLY PENSION FUND, 1900 TO 1905. 2295 [Source: Ministertov Finansov. Otchiot I'ensionnoi Kassy vol'nonalomnykh po kazionnoi prodazhe piteL lyOO-1905.) Item. 1900. 1901. 1902. 1903. 1904. 1905. Balance on hand at beginning of year. . . $962,614 2,355,677 $2,355,677 3,536,438 $3,536,438 4,590,208 $4,590,208 5,362,862 $5,362,862 6,454.635 Balance on hand at end of year $962,614 Income: Membership deductions and con- tributions 781.691 179, li58 12.996 13,697 1,043.506 282. 713 94,283 60,586 875.231 252,973 144,110 59,931 791, 574 275,783 193,503 27,040 823,424 311,996 241,516 61,777 823 118 State subsidies 302 522 Interest on securities 288 875 All other 51 694 Total 987,642 i 1,481,088 1.332,245 1,287,900 1,438,713 1,466,209 Expenditures: Purchase of securities 805,920 1,474,980 10,713 5,537 1,255,993 83,513 21,205 1,084.358 203,854 7,308 1,084,174 311.211 5,808 1.101 37S Compensation, subsidies, etc 324 327 All other expenses 4,095 4,037 Total 810.015 1,491,230 1,360,711 1,295,520 1.401,193 1,429 738 Members' accounts: At the beginning of the year 740. 187 1,780.242 1,780.242 2.830,150 2.830.150 3,747.905 3,747,905 4,588,339 4 588 339 At the end of the year 740, 187 6.060 544 Added to members' accounts: Members' contributions- Six per cent salary deductions.. Ten per cent initiation fees Promotion deductions Premium deductions. 237.353 394, 258 28,785 95 37 444,827 367,318 92,248 18,341 173 574. 491 263,164 92.782 12,957 403 612,754 139, 154 85,526 14,529 790 624,091 110,778 66,500 21,021 1,158 629.206 109.330 90.656 16 4K5 Voluntary contributions 1.358 Total «)0. 528 922,907 943. 797 852.753 823.548 847 035 All other Items: Three per cent treasury subsidy Interest arcnied 117,953 221,938 27,752 286.852 68,158 306.314 107,044 311.943 141.280 48.340 35,901 314.478 173 810 Profitjs distributed 92,548 Other items 41,921 48,961 30,063 44 XCl Total 117.953 291.611 403.971 443.421 537.464 625 16a Grand total 778.481 1.214.518 1.347,768 1.296,174 1,361.012 1 472 204 Deducted from members' accounts: Died, leaving families 1,200 9,020 1,905 11.875 2,341 106,771 29,016 97,182 50,676 20,826 4,700 221,623 29,237 65,804 36,229 27.104 6,578 314,882 94,785 38,147 39.080 .VI '>47 Died, without families . 5,496 356,046 61,901 31,885 b 377 199 Left service after 2 years' service, but before pension limit Left service before 2 years' service, but for valid reasons 3,279 («) 35,230 16,671 101, 722 45,144 Left service before 2 years, and without right to receive any pay- ment All other deductions Total 39,709 174,462 j 297,861 378,419 520,576 871 774 o Included in all others. l» Including $32.'>,or.4 deducted accounts of members who abandoned membership in fund in conformity with the imperial order of December 2, 1905, relieving workmen and minor employees from obligatory membership. The amount of normal pension depends upon the salary of the employee, the length of the service at the time of applying for a pen- sion, and also upon his age. 67725°— VOL 2—11 51 2296 KEPORT OF THE COMMISSIONEE OF LABOR. The following table shows the accumulations which will accrue to a married male member 30 years of age at the time of the organization of the fund and receiving an annual salary of $500 : VALUE OF ACCUMULATIONS AND AMOUNT OF PENSION OF A MARRIED MAN 30 YEARS OF AGE AT TIME OF ORGANIZATION OF FUND, RECEIVING AN ANNUAL SALARY OF $500. [Source: Otchiot pensionnol Kassy vol'nonalomnykh slnzhashchikh za 1901 god., Vol. II, p. 39.| CHAPTER IX. — WORKMEN S INSURANCE IN RUSSIA. 2297 Date. Length of member- ship (years). Age (years). Value of •ocumu- lations. ATnonnt of aiuiual peasioD. December 31— 1905 H 10 15 20 25i m 35* 38^ 35 40 45 50 55 60 65 68 $330.78 046.17 1,029.90 1,534.08 2,181.91 3,023.15 4,142.9« a, 003. 73 1910 1915 963.44 1(»3.24 im. 81 248.20 3H5.30 504.37 1920 1925 1930 1935 1938 It may be said, therefore, that a man of 30 would have to remain in employment over 38i years to receive a pension equal to his salary and 30 J years for a pension of about one-half his salary; tliat after 15 years his accumulations would somewhat exceed two years' pay and his pension be equal to about one-eighth of his salary. This salary of $500 is higher than that received by the average workman in the liquor-monopoly service. The average salary of an em- ployee, though varying slightly from year to year and showmg a tend- ency to rise, is equal to about $200. For an employee with this salary, but otherwise as described above, the value of accumulations after 20 yeai-s would be about $600 and his i>ension a little over $40 per annum; after 25 years the accumulations would be about $875 and the pension $64; after 30 years, $1,200 and about $100; and after 35 years, $1,656 and $154, respectively. PENSION FUND OF THE GOVEKNMENT PRINTING AND ENGRAVING OFFICE. This fund was organized in accordance with the law of May 3 (15), 1899 — i. e., about one year before the establishment of the Liquor Monopoly Pension Fund and was a successor to a relief fund existing since 1865. Having a smaller membership than either the railroad or the liquor monopoly fund and being similar to them in its organi- zation, only a brief description will be given, as the original reports of this fund can not be secured. The main sources of revenue, such as the contributions of the employees aiui of the employer (tlie treas- ury in this case) are exactly the same as in the Liquor Monopoly Pension Fund, except that the income from penalties is also added; and the system of individual accounts as a basis for the computation of pensions is identical with that of the other funds. The ordinary pension, thus computed, is granted only after 15 years of member- ship in the fund. In case of invalidity, however, so-called extraor- dinary pensions are granted, and these are based upon an entirely different principle, being arbitrary proportions of the earnings, as follows: After 10 and up to 15 years of service, 15 per cent of the earnings; after 15 and up to 20 years of service, 20 per cent; aft^r 20 and up to 25 years, 30 per cent; after 25 and up to 30 years, 40 per cent; and after 30 and up to 35 years, 50 per cent of the earnings. As these proportions do not depend upon the accumulations, they may become an excessive charge upon tlie fund to be met by addi- tional subsidies from the treasury. The conditions of return of the accumulations before the right for an ordinary or so-called extraor- dinary pension is acquired are the same as in the other pension funds described — namely, in case of separation from the service within two years no returns are made; in case of separation after 2 and before 10 years of service, his payments without mterest; after 10 years, his payments and 25 per cent of all the other additions to his account; after 11 years, 40 per cent; after 12 years, 55 per cent; after 13 years, 70 per cent; and after 14 years, 75 per cent of these accumulations. These rates apply only to married men with fami- lies; single men or widowers without children receive only 75 per cent of the amount, but in no case less than his actual contributions. The fund combines occasional financial assistance to its members and also a loan business with that of granting pensions. The admin- istration of the fund is intrusted to elected members under the chairmanship of the director of the printing office. This fund is one of the few pension funds which were organized for the benefit of industrial wage-workers of a manufacturing plant. OLD-AGE FUNDS OF THE FACTORIES AND HARBOR WORKS OF THE MIN- ISTBT OF THE MABINE. By the laws of January 27 (Feb. 9), 1903, and April 18 (May 1), 1903, old-age funds were established for the wage-workers employed in the factories and harbor works of the Ministry of the Marine. These funds are practically based upon a system of enforced saving with certain benefit features attached. Two separate funds are established — the saving fund and the benefit fund. The employee contributes to the saving fund 6 per cent of liis earnings and the management of the establishment contributes half of that amount to the benefit fund. In each of the funds each employee has a personal account, which grows by contributions as well as by acxjruing interest. In case of death both accounts are paid to his heirs in the following order: His widow and children; and when no widow or children survive, to his mother; in her absence, to the dependent father or to the unmarried 2298 BEPOET OF THE COMMISSIONER OF LABOR. sisters. If the employee is forced to leave the service because of an accident, disease, or old age, he receives both of his accounts in full. He is entitled to his account in the savings fund at the time of sepa- ration from service, no matter for what reason. But Avith tlie excep- tion of death or separation because of tlisability, the payment of the individual account in the benefit fund is made the subject of rather complicated regulations. All occupations are divided into four classes, according to the danger element and severity of labor. In the first group, the most dangerous and difficult, the employee acquires the right to receive his entire benefit account after 15 years, in the second after 20 years, in the third after 25 years, and in the fourth group after 30 years. Before the expiration of these maximum lunits only partial payments may be made from the benefit fund, as follows: 33 per cent after a specified number of years and an additional per- centage for each additional year until the full amount is reached. In the first group, after 5 years; and for each additional year 7 per cent and 6 per cent alternately each year. In the second group, after 7 years; and for each additional year 5 per cent. In the third group, after 8 years; 36 per cent after 9 years; and 4 per cent additional for each year. In the fourth group, after 10 years; and 3.35 per cent additional for each year. OLD-AGE FUND OF TflE VOLUNTEEE FLEET. The above-described system of old-age provisions in the Ministry of the Marine has followed very closely after the system introduced by the law of July 27, 1896, for the employees of the so-called volunteer fleet (a private navigation company subsidized by the Government) . Accordmg to this law there are two funds — a saving fund and a benefit fund. The employees contribute 10 per cent of their earnings to the savings fund and the management of the company contributes to the benefit fund 8 per cent of the earnings of those receiving 720 rubles ($370.80) or less and 6 per cent of the earnings of those receiving more than 720 rubles ($370.80). The right to receive the savings accounts is unlunited after one year of service; for the purposes of adjusting the payments for the benefit funds the employees an? classified into four groups, (1) the workmen and employees on land, (2) the line officers, (3) sailors, except firemen, and (4) firemen. The minimum payment of 50 per cent of the account in the benefit fund is paid to employees of the first group after 10 years of service, of the second group after 9 years, of the thu*d group after 8 years, and of the fourth group after 6 years. For each additional year 5 per cent additional is allowed to the first group, 5 to 6 per cent to the second, 6 per cent to the thu-d, and 8 per cent to the fourth. The full amount is paid to the first group after 20 years, to the second after 18 years, to the third after 16 years, and to the fourth after 12 years. ^ CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2299 In case of death or abolition of the position the entire value of both accounts is paid to the employee or his heirs, independent of the length of service. PENSION FUNDS OF THE "ZEMSTVOS." All the pension institutions described have been established by the Central Government for its own employees. A brief description of the pension funds of the "zemstvos" (the organs of local self-government) are of considerable interest, as evidence of the great popularity of old- age insurance in Russia, though the majority of the employees belong to the professional classes (physicians, nurses, agronomists, clerical employees) and so bear only an indirect relation to the problem of labor insurance. The "zemstvos," organized in 1864, are representative bodies elected by the landowners and peasants. As early as 1868 the first zemstvo employees' pension fund was established by the provincial zemstvo of Tver; the Province of Nizhni Novgorod followed in 1871, and St. Petersburg in 1877. These led to a general law, promulgated on April 30 (May 12), 1883, regulating all pension funds to be estab- lished by the zemstvos. The law required the approval of the con- stitution by the Ministry of Interior as a necessary prerequisite and also the agreement of all the district zemstvos of a province for the establishment of a pension fund in that province. The contributions of the zemstvos were limited to 3 per cent of its budget. From 1883 to 1899 pension funds in conformity with the law were established by 14 zemstvos, while many others petitioned the Ministr}^ of Interior for changes in the law regulating such pension funds, namely, that the agreement of the majority of the district zemstvos be suffi- cient or that the provincial zemstvos be granted power to make pension funds obligatory for the district zemstvos of its province. It was even suggested by some zemstvos that one central old-age pension fund for all zemstvos be established by cooperation among all zemstvos. Several zemstvos insisted that funds of the '^insurance t^^pe" were preferable to those of the ''emeritus type" (Emerital 'naja Kassy), Under the former is understood in Russia the type of pension fund in which the amount of pension depends largely upon the total pay- ments made, while the ''emeritus type*' of funds grants pensions depending upon the salary at time of separation from service. It is almost impossible to construct any tables for the latter type of pen- sion funds, so as to make them self-supporting. This type was popular for the earlier pension funds of government employees, when the Government undertook to cover any deficits; and of the 14 pen- sion funds estabhshed before 1900, 11 were of that type. Under the influence of these memorials the ^Ministry of Interior elaborated a new plan for zemstvo pension funds, which passed the Imperial Council and was approved on June 12 (25). 1900. This new law is 2300 REPORT OF THE COMMISSIONER OF LABOR. based on the '^insurance plan." It was the intention of the ministry to make the estabhshment of pensiim funds obUgatory for all zemstvos, but the Imperial Council did not agree with that demand, leaving the organization of the pension fund to the decision of the provincial zemstvos. It also rejected the demand of the ministry, that all the existing pension funds be made to conform to the type outUned in the new law. With the promulgation of the law the establishment of new pen- sion funds proceeded very rapidly. One fund was opened in 1001, 6 in 1902, 4 in 1903, and at this time all the 34 zemstvos, with the possible exception of one or two, have pension funds. While the change from the old to the new type was not obHgatory, a great many zemstvos have made such changes, leaving the old funds to carry only those employees who have been members in it for a series of years. Altogether 15 of the 34 zemstvos now have pension funds conforming to the new law of June 12 (25), 1900. Each one of these has its own constitution and by-laws, which differ from each other in minor details, but they must all conform to the general demands of the law. The general basis of this law is a rather close imitation of that estabUshing the State Railway Employees' Pension Fund, the greatest fund of its kind. Membership in the fund is obhgatory for all paid employees of the zemstvos (not excluding the elective officers) below a certain age (50 in some funds and 55 in others). The income of the fund is derived from (1) obhgatory contributions of the memb(Ts, of the same nature as in the raih-oad fund, namely, 6 per cent of the first year's salary as an initiation fee, 6 per cent of the monthly salary, 10 per cent of the special-prize moneys, the difference between the old and new salary for three montlis in case of promotion; (2) voluntary contributions of members, the amounts not to exceed the obhgatory contributions; (3) contributions of zemstvos; (4) profits from investments; (5) miscellaneous revenues, such as fines, moneys unclaimed, etc. The distinctive feature of the law is the heavy con- tributions of the zemstvos, which must be equal to those of the members, i. e., 6 per cent of the salaries. This gives a total of 12 per cent of the salaries as an annual contribution to the pension. Umler such conditions it is comparatively easy to grant hberal pensions. The contributions of the members must be credited to their per- sonal accounts, while the contributions of the zemstvos are distributed in the following order: The cost of orphans' pensions must be secured; then any deficit of the fund shall be covered, unless i)reviously met out of the reserve; then the remaining sum is distributid among the accounts of wives, but not to exceed two-thirds of the members' contributions for the same year; and iinally, if there is still any remainder, it is distributed among the accounts of the members. CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2301 Of the profits of investments, etc., one-half must be assigned to the reserve until it reaches 10 per cent of all obligations of the fund; the other half and the entire profits after the reserve has been sufficiently built up are distributed among the members' accounts. The members have the right to receive a pension at separation from service after 15 years of service. Pensions may be given to employees forced to leave the service on account of total disability due to illness after 5 years' membership. The detailed regulations are determined by the constitutions of the individual funds. If no pension is granted all the sums accrued to the member's credit must be paid out to him. The same is true if a member is forced to leave the service through disabihty before the expiration of five years. In case of separation without disabihty before the expiration of 15 years, the member receives only his own contributions, without interest if leaving the service before five years, and with compound interest at 4 per cent if after five years of service. After 10 years of service 25 per cent of all other sums credited to his account must be paid, after 11 years 40 per cent, after 12 years 55 per cent, after 13 years 70 per cent, and after 14 years 85 per cent of all such amounts. In case of death of an employee after five years of employment the widow receives a pension imtil death or remarriage, etc., the amount depending on the accumulations to the credit of her husband. If an employee dies before the end of ^yb years of service the widow receives in one payment the sums credited to their accounts. Pen- sions must also be given to the children in case of death of the member after five years of service, to be paid until 18 years of age or marriage, and may be extended until the completion of secondary education, but not later than the age of 21. The same conditions as exist in the State Railway Employees' Pension Fund, modifying the pension, are made in case the children receive a scholarship from some other source. A demand for the payment of the capitalized value of the pension may be made by the employee when the pension does not exceed one-fourth of his average salary for the entire period of service, and by the widow when it does not exceed one-sixth of the average salary. In all pensions to employees and widows, but not to children, the capitahzed value of one-fourth may be requested by the pensioner. The administration of the pension is left to the zemstvos and its administrative council (the uprava), while members of the fund may be invited into the special committee in charge of the fund. These are the general requirements which the law demands from the pension funds. The individual funds may vary within the pre- scribed hmits, but each individual constitution requires the approval of the Ministry of Interior. To expedite matters a standard con- stitution has been prepared by the ministry, by accepting which the 2302 EEPORT OF THE COMMISSIONER OP LABOH. time necessary to obtain the approval is materially shortened; while the mtroduction of material changes in the model constitution has m some cases led to considerable delay. The constitutions of the pension funds organized sirce 1900 are fairly uniform; the deviations from the normal constitution are not many, though some are important. The sources of revenue are umform, though a few pension funds started with the transfer of large accumulations, made for old-age pensions, while others had no capital to begin with. The contributions from the members are usually as stated above, though one fund demands an initiation fee equal to one and one-half months^ salary instead of 6 i>er cent of the annual salary; while in another fund the zemstvos contributes 8 per cent of the annual salaries instead of 6 per cent. In some funds no salaries are considered as above 2,000 rubles ($1,030) for pension purposes, wMle others have no such limitations. Uniformly, any per diem expenses or travehng allowances, though paid in regular annual amounts, and also the part of salary designated for renting a home IS not included, it being the custom of the zemstvos either to provide their employees with lodgings or to pay a specified sum for renting same. All funds grant a pension to the employee at the time of leaving the service after at least 15 years; most funds grant a pension to disabled employees leaving the service after at least f> years, though a few have preferred the payment of a lump sum equal to all accrued rights. The computation of amounts, paid at time of leaving the service after 5 to 15 years for other roasons than disabihty is uni- form and agrees with the plan demanded by the law and explained above. If the employee's wife is living at the time of his leaving the service without a pension, he is also entitled to certain payments on her account, as follows: If the employee leaves before the expira- tion of 5 years of service because of total disabihty, or before 15 years of service because his position is abohshed, or if he leaves it for any reason at the age of over 60 years, then he is entitled to receive the entire amount credited to liis wife's aocount. If he leaves for any other reason he receives only liis voluntary contributions to the credit of his wife, and in addition after 5 but less than 10 years of service, 10 per cent of all other amounts cred- ited to his wife; after 10 years of service, 25 per cent; after 11 years, 40 per cent; after 12 years, 55 per cent ; after 13 years, 70 per cent,' and after 14 years of service, 85 per cent of aU other amounts cred- ited to his wife's account. Almost no variations are found in the regulations concerning the clnldren's pensions. These are not based upon the acc'umulations of mdividual credits, hke the pensions ot other benefits of the employ- CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2303 ees or widows. For that reason a spec^ial fund is provided for chil- dren's pensions. The conditions of these pensions are specified in the general law, and have been stated before. The amount of the pension is com- puted as follows: Each child of a deceased employee having one parent hving receives for each year of the present service one-half of 1 per cent of the latest salary wliich the deceased parent received for a full year. An orphan receives 50 per cent more than the half-orphan. The maximum sum of pensions to all tlie half-orphans left by an employee must not exceed 50 per cent of liis salary. The pension for orphans must not exceed 75 per cent of the salary nor be less than 20 per cent. Pensions for death of the mother are not paid unless the father is completely disabled from earning a hveli- hood and is not receiving any subsidies from the fund. If both parents were employed in the same zemstvo, and the father dies, the children receive their pensions if the mother continues in service- when both parents die they receive the greater of the two i)ensions to which they are entitled. The financial arrangements are also similar to those of the State Railway Employees' Pension Fund. Each member has a personal ac- count to which all his obligatory contributions are credited. Volun- tary contributions are assigned according to the wishes of the member, if consistent with tlie rules. Among these individual accounts are also distributed the remaining part of the monthly contribution of the zemstvo after the other obligations have been met, the ])rofits and income from investment, or that part of it whicli does not go into the reserve (in wliich distribution the wives' accounts some- times share equally with the members' accounts), and all other revenues not specially provided for. Individual accounts are also kept for the wives of the married members. The credits of these accounts are taken from the obhg- atory zemstvo contributions after deducting the necessary amount for the cliildren's fund and for covering any existing deficits for which the reserve is insufficient. Within each year not more than two-thirds of the obligatory montlily contributions of the members may be credited to their wives' accounts. The profit or income from investments, or at least that part which does not go into the reserve, is distributed among the wives' accounts, as well as among the accounts of members. A special orphans' fund is estabhshed to guarantee the pensions to children. This must alw^ays be kept at the level correspoiiihng with the amount of the orphans' fund obligations at the time, as computed from statistical data of mortahty, etc. The income from fines is turned over to this fund, also accidental revenues, bequests, etc., without designation of purpose. The fund is kept at the 2304 EEPOET OF THE COMMISSIONER OF LABOR* required level by adding to it the necessary amount from the monthly contributions of the zemstvos. In addition there is a reserve fund. One-half of the profits and mcome from investments goes into the reserve. When pensions or parts of pensions are capitahzed, 5 per cent of the sura paid to the pensioner is turned into the reserve, also unclaimed amounts due, and a few minor revenues, until the reserve amounts to 10 per cent of all the obhgations of the pension fund . When tliis limit is reached, all these sources of income are distributed among the individual accounts of the members and their wives proportionally to the amounts credited to these accounts from the regular monthly con- tributions of the zemstvos. In some funds this distribution is made proportionally to the total amounts of these individual credits. A variation found is in distributing all e.xtra sums so as to favor the employees receiving smaller salaries. Tliis is acdng from 4.52 per cent at the age of 17 years to 8.85 per cent at the age of 70. In determining the length of service, normally the ^'ears of con- tmuous service in the particular zemstvo, with participation in the fund, are counted. At the time of opening the fund the years of previous service were taken into consideration. If the employee leaves the service before he is entitled to a pension, receiving a lump sum, and then reenters service, the years of his previous service will be counted if ha reimburse the fund for the payments he and his wife had received. Otherwise he is considered a new employee. If the employee at the time of reinstatement receives a pension, and his new salary is greater than the pension, the payment of the pension is stopped, but its capitalized value at his age at the time is credited to his account. If his new salary is smaller than his pension, he is per- mitted to receive the pension. It is a rule of almost all funds that persons transferred from service in one z?mstvo to that of another zemstvo may transfer their membership and all credits in the funds, mcluding a credit for the years of service in the former. The procedure prescribed by the standard constitution has been adopted by all new funds. It provides for thorough medical exami- nations whenever the pension for disability is claimed, and medical reexamination once a year. CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2305 In other cases documentary evidence as to age, length of service etc., is sufficient. The adjustment of claims must be made within two weeks. Pensions must be paid in monthly installments. Lump- sum payments to widows are paid out at one time; to members only one-half of the lump sum due is paid at the time, the other half in six months, unless the member dies witliin that time, in which case the second half reverts to the reserve. Applications for capitalized value of pensions must be made within two weeks after the determi- nation of the pension and before the first pension is paid. The administration may dechne the apphcation if made after two weeks; while applications made after receiving the first pension payment are not considered. Persons making no application for pension withm two years, or taking no advantage of the pension granted, lose their right to claim the pension for the time expired. After 10 years they lose all their rights, and the value of the pensions or benefits is transferred to the reserve. The statistical basis upon which all com- putations are made must be revised every five years, but if any changes are found necessary the pensions granted,*^ or the individual credits, must not be diminished in consequence. The administration of the fund differs considerably from that of the railway pension fund in that the membership scarcely partici- pates in it. The executive board of the provincial zemstvo {Guherr^ sJcaya ZemsTcaya Uprava) and a special committee, with the chairman of this board as chairman and chairmen of the boards of the district zemstvo as members, administers the affairs of the fund. The t^sneral supervision over the activity of these executive organs is leftVo the provmcial zemstvo. which may add some members of the fund to the committee; and which must approve the budget for the expenses of administration. The main supervision over all funds is in the hands of the insurance committee of the Ministry of Interior. Detailed annual reports, together with all required statistical mformation m regard to the membership, must be presented by the executive board to the zemstvo and, after bemg approved by the latter are forwarded to the Ministry of Interior. ' PKIVATE PENSION FUNDS. The old-age pension funds described above, except those of private raih-oads, embrace only government institutions. The activity of the Government in regard to the broad field of old-age and invalidity insurance of private employees is as yet limited to plans and legisla- tive proposals. Private initiative has done but little in the way of pensions for the wage-workers of the country. Among the salaried employees the pension fund principle is popular; applications of it are found among the employees of the zemstvos as described above 2306 REPORT OF THE COMMISSIONER OF LABOR. among the employees of municipalities, and of many large financial, commercial, and manufacturing institutions. The best known old-age pension institutions for wage-earning employees of private industrial establishments are the miners' funds of the Polish mining and metallurgical industry, but these have already been described in connection with the topic of sickness insurance. EFFORTS FOB REFORM. EFFORTS OF THE' SOCIETY FOR ENCOURAGEMENT OF RUSSIAN INDUS- TRY AND COMMERCE. Early in 1902 the question of labor insurance was raised in the Society for Encouragement of Russian Industry and Commerce, and three commissions were appointed for the consideration of the three main branches of labor insurance, all under the chairmanship of and in collaboration with important officials. One of these com- missions undertook the study of the problem of old-age insurance; and when the committee of ministers, on December 24, 1904 (January 6, 1905), established, in conformance with the imperial ukase of December 12 (25), 1904, a labor insurance commission under the Ministry of Finance, the material collected by the society was turned over to that commission. In the opinion of the commission, an old-age insurance system must include all classes of wage-workers, not excepting the agricul- tural laborers and domestic servants, and insurance against invalid- ity in addition to that against old age proper. In regard to the age at which the regular old-age insurance should begin, no unanimous decision was reached, but the majority of members of the commission were in favor of a 60 or 65 year age limit. The question of pensions for the widow and orphans was discussed. As was shown above, such pensions, within certain limitations, are an essential part of all the government employees' old-age insurance funds. But such pen- sions require an additional cost which would be considered excessive in the beginning, besides presenting many technical difficulties in view of the absence of necessary statistical data, and it was thought wiser to disregard the demand for widows' and orphans' pensions in the immediate agitation for old-age and invalidity insurance. The system of percentage deductions from wages, with individual accounts, was not considered feasible in view of the very h)w st andard of wages. Instead, a system of arbitrary weekly contiibutions was thought preferable. For the purposes of such contributions it was suggested that the wage-workers be divided into classes according to their earnings : (1 ) Those earning less than 60 rubles ($30.90) annually ; (2) those earning from 60 to 120 rubles ($30.90 to $61.80); (3) from 120 to 180 rubles ($61.80 to $92.70); (4) 180 to 300 rubles ($92.70 CHAPTER IX.— WORKMEN S INSURANCE IN RUSSIA. 2307 to $154.50); (5) 300 to 480 rubles, ($154.50 to $247.20); and (6) 480 to 1,000 rubles ($247.20 to $515.00). Whether worker earning more than 1,000 rubles ($515). annually should be required to insure against old age and invalidity was not definitely decided. For each of the six classes enumerated, definite weekly dues are to be collected, with an equal contribution from the employer, while the state treasury should contribute at least one-third of the value of the pension, and even more when necessary to bring the pension up to the required minimum. To members of each group a definite pension is to be paid, either at the regular age or at the establishment of disability from invalidity, but in no case unless 200 weekly pay- ments had been made. While no definite scale of pensions was prepared by the commission, yet in a report to the commission by one of the members the pro- posed pensions for the six groups were 18, 30, 48, 72, 120, and 180 rubles per annum. ($9.27, $15.45, $24.72, $37.08, $61.80, and $92.70.) It was freely admitted at the time that the almost entire absence 01* statistical data made a scientific adjustment of contributions and cost of the pension impossible, but the need for pensions was stated to be so great that it did not permit of a delay until such data could be completed. It was expected that in the beginning the cost to the treasury might be heavy, but a gradual adjustment through periodical revision of rates could meet that difficulty in time. PLAN OF 1905 FOR A GENERAL OLD-AGE INSURANCE SYSTEM. The first comprehensive governmental plan for old-age and inva- lidity insurance of workmen employed in private establishments was published in 1905 as a part of the general workmen's insurance plan, the other parts of which were analyzed in preceding sections of this chapter. This plan was somewhat of a compromise between the pension funds for government, zemstvo, and railroad employees, described above, and the plan of the Society for Encouragement of Russian Industry and Commerce. The pensions are based upon the value of the individual accumulated accounts, which consist mainlv of equal contributions by the employers and employees. Special pen- sions are also provided for in cases of invalidity for widows and children. The main differences between this plan and the existing pension funds are, on the one hand, the guarantee of a minimum pension; when the accumulations do not cover its cost, the difference must be paid from the reserve, and the state treasury is to meet the obligations of the reserve if its funds are exhausted. That is to a slight extent a direct subsidy of the state treasury to the old-age and invalidity insurance. On the other hand, the obligatory payments 2308 REPORT OF THE COMMISSIONER OF LABOB. of both employer and employee are much smaller than in the de- scribed pension funds. Where those payments equalinl 9 to 12 per cent of the wages, besides many other important sources of revenues, fairly large pensions could be paid after comparatively short periods of service. The contributions according to this plan of 1905 are greater than those contemplated by the Society for Encouragement of Russian Industry and Commerce; yet they equal only 3 per cent from each side. As a consequence the pensions must be quite small, but larger than in the earlier plans; this is evident from the amounts of the guaranteed minimum. After 25 years of membership in the fund the guaranteed minimum is only 36 rubles ($18.54) per annum, or $1.55 per month; and for invalids after five years only 24 rubles ($12.36), or $1.03 per month. Widows' pensions are granted only if the work- man dies while a member of a fund, but not after he has received a pension. PLAN OF 1906. A radical change in the attitude toward the probh^m of old-age insurance took place in the conferences which elaborated the insul*- ance plans of 1906. Wliile the desirabihty of such insurance was still recognized, grave doubts were expressed as to its feasibility for tlie immediate future. It was pointed out that even in Germany the introduction of accident and sickness insurance preceded that of old- age and invalidity insurance by many years, and that that was the natural sequence in all other countries gradually working their way toward a complete system of obligatory social insurance. The greatest difficulty was found in the pecuharities of organizaticin of Russian industry and commerce, with the predominence of small artisans' shops, hand trades, home industry, and other branches of semiindependent workers. The simultaneous extension of the ohl- age insurance system over the entire body of industrial, commercial, and transportation wage-earners was thought out of the question' and under such circumstances the shifting of the wage-earners froin a class of service included in the old-age insurance scheme to another not so included w ould be a very frequent occurrence, and the retention of the contributions made by the employee to the fund would work an injustice. As a matter of fact, almost all existing Russian old-age pension funds repay the contributions of the insured at separation from serv- ice after a very brief period of service (usually two years). The German system of nonrepayment of these contributions would meet very strong opposition, and, on the other hand, the practice of repay- ment would be so frequent as to make the payment of pensions excep- tional and also very difficult. In this combination of circumstances the commission of 1906 saw a cause of an automatic breakdown of the old-age pension system. It therefore proposed that the plan for CHAPTER IX. workmen's INSURANCE IN RUSSIA. 2309 introducing such a system be indefinitely postponed, and in its stead a system of savings funds for individual establishments was recom- mended. Such savings funds may be established either upon the initiative of the employer or by vote of the employees. Membership in the savings fund was to be voluntary unless at least three-fourths of the employees vote for its establishment; in that case the establish- ment of the fund is mandatory and membership obligatory for all wage-workers employed at the time or subsequently. Under the voluntary organization the amount of savings is left to the discretion of the employees, but in the obligatory funds the savings are regu- lated by the proposed law, which requires them to be not less than 2 per cent nor more than 4 per cent of the earnings. These obligatory funds are more than savings funds and may be termed savings and benefit funds, for the employei-s are required to add at least 25 per cent to the contributions made b}^ the employees. The accumula- tions are paid to the employee at the time of leaving his employment, according to the following regulations: The individual savings uncon- ditionally, and of the benefits contributed by the employer 30 per cent after 3 years of service and 1 per cent additional for each addi- tional year of service. Besides the savings and benefit fund, a sur- plus fund is also established, into which those portions of the benefit fund are turned which have not been paid out because of premature separation from service, and this fund is to be used for granting bene- fits to famihes of deceased employees. The savings funds are also permitted to grant loans to the members. The administration of these funds is to be intrusted to the general members' meetings and a board of directors consisting of representatives of the employer and employees. Onl3^ in a very indirect way are these planned funds connected with old-age insurance. The only element is the gradual acquisition by the employee of a right to the employers' contributions to the sav- ing fund. These rights are fully acquired in ten years, but at best they have a small value. With the average earnings of about $100 per annum, the workmen's average contributions will be from $2 to $4 a year and the employers' average contribution to the benefit fund from $0.50 to $1. PlJiN OF 1907. Notwithstanding the conclusions of the conference of 1906, which were discouraging to the idea of immediate organization of old-age and invahdity insurance, the Ministry of Commerce and Industry con- tinued its work on the further elaboration of an old-age insurance plan, the results of which were published, together with much explan- atory material, in May, 1907. This bill was not introduced in the Duma until June, 1908, together with the other insurance bills, and 2310 EEPOKT OF THE COMMISSIONER OF LABOR. SO is evidently not considered a matter for immediate consideration; nevertheless the bill shows the gradual growth of the influence of the German insurance methods in Russia. While the plan of 1905 was based upon the system of personal accounts, thus following the exist- ing pension funds for salaried employees, and the plan of 1906 hid taken another step away from the pension principle toward simj)le saving, with a few slight benefit features, the plan of 1907, on the con- trary, shows a strong tendency in the opposite direction. It is much nearer to the suggestions offered by the Society for Encouragement of Russian Industry and Commerce in 1902. The bill was intended to establish obligatory old-age and invalidity insurance for all wage-workers and employees over 15 years of age in industrial, trade, commercial, and financial estabhshments. The cen- tral insurance office, to be established, shall have the right to extend this system of ot.ligatory insurance to the following classes of persons either throughout the Empire or in definite regions: Domestic serv- ants, independent artisans who do not employ any hired labor, per- sons belonging to ''artels" (industrial cooperative groups), or per- forming work on order, even if they em})loy labor, but work together with their employees. The following groups are excepted: (a) Agricultural laborers and employees of rural industrial establishments; (&) employees receiv- ing no other compensation except subsistence; (c) privates in the army and navy performing industrial labor as a part of their duties; ((Z) aliens; and (e) persons over 60 years of age at the time of organi- zation of this insurance system, or who had lost at least two-thirds of their working ability; also persons who at the time of adoption of the law hold membership in any pension funtl granting old-age and inva- lidity pensions not inferior to those estal)lislied by this act. Furthermore, the following persons may be freed from the- obliga- tion of insurance if they so desire: Those who are not employed over twenty weeks throughout the year in estabhshments subject to com- pulsory insurance, and persons receiving pensions not inferior to the minimum pensions established by this bill, either from accident insur- ance or from any existing pension fund. Thus the exceptions embrace a considerable class of wage-workers. The exception of agricultural laborers is perhaps the most important one. Next to it may be placed the group of persons employed not over twenty weeks per annum. That may include a great many per- sons in construction, building trades, and in such seasonal trades as sugar manufacturing and refining. The amounts of old-age or invalidity pensions, funeral expenses, and also of weekly contributions depend ui)on the wages of the insured, who are classified for this purpose into five groups, as shown in the following tabular statement: CHAPTER IX. — workmen's INSURANCE IN RUSSIA. 2311 CLASSIFICATION OF INSURED PERSONS ACCORDING TO THE OLD-AGE INSURANCE PLAN OF 1907. [Source: Official text of the bill and report accompanying same.] Class. Annual wages. Old-age pensions. Basic in- validity pensions. Additional invalidity pension for each paid- up week. Weekly premium* 1 $103 and under 124.72 37.08 49.44 61. -26 74.16 $1&54 24.72 30.90 37.08 43.26 $0. 015 .031 .046 .062 .077 $a053 .103 .154 .206 .258 2 Over $103 to $20G 3 Over $206 to $309. . . 4 Over $309 to $412 5 Over $412 to $515. In computing the annual earnings the value of all compensation, food, lodgings, etc., must be considered; the annual earnings are taken as equal to 12 times the monthly earnings, 52 times the weekly earnings, or 280 times the daily wages. In case of piecework the class is determined by agreement between employer and empWee, or by reference to an insurance inspector. The premiums are to be paid weekly and in the amounts indicated in the table. The payments made while the insured person is em- ployed are obligatory, and equal shares are contributed by the employer and employee. Voluntary payments may be made during nonemployment and then entirely by the employee. The level of old-age pensions is definitely established. To receive an old-age pension a person must be at least 60 years of age and show at least 1,000 ^'paid-up weeks." In addition to the number of weeks for which the premiums were actually paid in, either in the form of obligatory or of optional payments, the privilege is given to count the time spent in military service, or the time of disability due to sickness not to exceed 4 weeks in one year; in case of maternity, 8 weeks may be counted in one year. The right to a pension lapses when less than 40 weeks are paid up during two years. It may be reestablished by paying up new 200 weeks. The right to the pension is lost at death of the pensioner, or when the pensioner is granted another pension at least equal in amount, for disability resulting from injury. It may be suspended temporarily under certain conditions. If an insured male person dies before acquiring the right to a pen- sion a funeral benefit, equal to two-thirds of the annual value of the old-age pension of the same group to which the last 40 premium payments belonged, is paid to his widow or children. When these payments were distributed between difi'erent wage groups, a corre- sponding adjustment is to be made. In case of death of a female married insured person the surviving husband receives this benefit only in case of disability and dependency upon the earnings of the deceased wife. i 67725°— VOL 2—11- -52 2312 BEPOET OF THE COMMISSIONER OF LABOR. The pensions for invalidity (inability to work) are granted eitlier permanently or temporarily, without consideration as to age, but not before premiums for at least 200 weeks have been credited to the account of the insured, of which at least 100 weeks must have been actually paid in. Tlie basic invahdity pensions as shown in the above table are smaller than the old-age pensions. In the five wage groups they rei)resent, respectively, three-fourths, two-thbds, five-eighths, three-fifths, and seven-twelfths of the old-age pension. But the invalidity pensions are increased with the length of service. For each ^'counted in" insurance week a small increment is added to the annual value of the invalidity pension; provided, however, tJiat only when 40 weeks have been counted within one calendar year, or 80 weeks within two calendar years, are these increments added. Only the first and the last years of insurance are excepted from this qualification, all the counted weeks giving the right to additional increments, no matter how many or how few there were within one year. Methods of computing the old-age pensions and ])asic invahdity pensions in case of change from one group to another during the insurance period are given in the bill. The main revenue is to be derived from the weekly contributions. Many minor sources are mentioned, such as fines, proceeds from sale of insurance cards and pension books, incomes from invest- ments, and fines and penalties; but with all these tJie need of a substantial subsidy from the state treasury is expecteieloproisvodstvo glavnavo po fabrichnj-m i gornosavodskim dlelam prisutstvifa. (Ministry of Commerce and Industry, Bureau of Industry, office of the central factory and mining commission.) St. Petersburg, 1908. (a) Ob uchrezhdenii prisutstvii po dlelam strakhovaniia rabochikh. (Con- cerning the establishment of workmen's insurance commissions.) vb) Ob uchrezhdenii Sovieta po dlelam strakhovaniia rabochikh. (Con- cening the establishment of a workmen's insurance <'ouncil.) (c) Ob obespechneii rabochikh na sluchal boliezni. (Concerning the pro- vision for workmen in case of illness.) (d) strakhovanii rabochikh ot neschastnykh sluchaev. Obiasnitelnaia zapiska, (Concerning the insurance of workmen against accidents. An explanatory memorial.) Ministerstvo Torgovli i Promyshlennosti. Otdfel Promyshlennosti. Materialy po peresmotru rabochavo zakonodatel'stva. Osnovnyia polozheiua vytekaiur^h- chiia iz sostavlennykh v Ministerstvie Torgovli i Promyshlennosti proektov po rabochemu zakonodatelstvu. (Ministry of Commerce and Industry, Bureau of Industry. Data concerning labor legislation. The basic principles underlying the labor legislation proposals, prepared in the Ministry of Commerce and Industry.) St. Petersburg, 1907. Ministerstvo Torgovli i Promyshlennosti. OtdiTl Promyshlennosti. Polozhenie o Glavnom Strakhovom Upravlenii. (Ministry of Commerce and Industry, Buntau of Industry. Regulations concerning the central insurance office.) St. Peters- burg, 1907. Ministerstvo Torgovli i Promyshlennosti. Otdiel Promyshlennosti. Polozhenie ob obiazatelnom strakhovanii ot invalidnosti 1 starosti. Proekt. (Ministry of Com- merce and Industry, Bureau of Industry. Regulations concerning obligatory in- surance against invalidism and old age. A bill.) St. Petersburg, 1907. Ministerstvo Torgovli i Promyshlennosti. Otdlcl Promyshlennot^ti. Opredieleaie rasmera strakhovykh vsnosov neobkhodimykh dlia obespechenia vydach, i)re- dusmotrennykh proektom polozhenia ob obiazatelnom strakhovanii ot starosti i invalidnosti. (Ministry of Commerce and Industry, Bureau of Industry. The determination of the amount of insurance premiums necessary for guaranteeing CHAPTER IX. — WORKMEN S INSURANCE IN RUSSIA. 2315 the benefits, proposed by the project of the law of obligatory insurance against old age and invalidism.) St. Petersburg, 1907. Ministerstvo Torgovli i Promyshlennosti. Otdiel Promyshlennasti. Dopolnennio k zapiske o raschiote premil po strakhovanii invalidnosti i starosti. (Mini-stry of Commerce and Industry, Bureau of Industry. Supplement to the memorial concerning the computation of the premiums of invalidism and old-age insurance.) St. Petersburg, 1907. Ministerstvo Torgovli i Promyshlennosti. Otdiel Promyshlennosti. Polozhenie ob obiazatelnom strakhovanii rabochikh ot neschastnykh sluchaev. (Ministry of Commerce and Industry, Bureau of Industry. Regulations of obligatory insur- ance of workmen against accidents. Text of legislative proposal.) St. Peters- burg, 1907. Ministerstvo Torgovli i Promyshlennosti. Otdiel Promyshlennosti. Statistika nes- chastnykh sluchaev srabochimi vpromyshlennykh zavedeniakh, podchinionnykh nadsoru fabrichnol inspektzii 1901-5. (Ministry of Commerce and Industrj'^, Bureau of Industry. Statistics of accidents to workmen in industrial establi-sh- ments, subject to factory inspection, 1901-5.) St. Petersburg, 1903-8. (The reports for 1901 and 1902 were published by the Ministry of Finance.) Ministerstvo Torgovli i Promyshlennosti. Gomy Departament. Statistika ne- schastnykh shuchaev s rabochimi v predpriatiakh gornol I gornosavodskol pro- myshlennosti, podchinionnykh gornomu nadsoru, 1905, 1906. (Ministry of Com- merce and Industry. Mining Department. Statistics of accidenta to workmen in mining and metallurgical establishments subject to mining in8j>ection.) St. Petersburg. Ministerstvo Torgovli i Promyshlennosti. Statisticheskia svedenia o resultatakh primenenia zakona 2 iunia 1903 goda. (Ministry of Commerce and Industry. Statistical report concerning the result of the application of the law of June 2, 1903.) St. Petersburg, 1908. Ministerstvo Torgovli i Promyshlennosti. Otdiel Promyshlennosti. Svod otchotov fabrichnykh inspectorov, 1900-1908. (Ministry of Commerce and Industry, Bureau of Industry. Digest of the reports of the factory inspectors, 1900-1905.) St. Petersburg, 1903-1910. (The reports for 1900, 1901, and 1902 were published by the Ministry of Finance.) Ministerstvo Finansov. Otdiel Promyshlennoeti . Materialy k isucheniu rabochavo voprosa. Po offitzialn'ym dannym. Mart, 1905. (Ministry of Finance, Bureau of Industry. Materials for the study of the labor problem. From official data. March, 1905.) St. Petersburg, 1905. Ministerstvo Finansov. Departament Toi^ovli i Manufaktur. Vrachebnaia |>o- moshch fabrichnym rabochim. Sostavleno i rasrabotano fabrichnym re\-isofODi E. M. Dementievym. (Ministry of Finance, Department of Commerce and .Manufactures. Compiled and elaborated by factory inspector E. M. Dementiev.) St. Petersburg, 1899. Ministerstvo Finansov. Departament Torgovli i Manufaktur, Sbornik uzakonenii, pravil, u rasporiazhenil po dlelam kasaiushchimsia fabrichnoi inspektzii. Vypusk 1-3. (Ministry of Finance, Department of Commerce and Manufactures. Col- lection of laws, rules, and orders concerning factory inspection. Fascicle 1-3.) St. Petersburg, 1898, 1899, 1902. Ministerstvo Finansov. Otchot pensioiinol kassy vol'nonaiomnykh sluzhashchikh po kazionnol prodazhe pitei, 1900-1905. (Ministry of Finance. Report of the pension fund of the civil employees of the government sale of liquors. 1900-1905.) St. Petersburg, 1903-1908. Ministerstvo Putei Soobshchenia. L^pravlenie zheleznykh dorog. Sbornik uprav- leuia dlelami pensionnoi kassy sluzhashchikh na kazionnykh zheleznykh doro- gakh. (Ministry of Ways of Communication, Office of State Railways. Annual 2316 BEPORT OF THE COMMISSIONER OF LABOR. report of the administrative office of the pension fund of the employees of state railways.) St. Petersburg, 1897. Minist^re des Voies de Communication. Administration des Chemins de fer de 1 'Empire. Recueil de la Direction du Comit^ des Pensions. St I*etereburg, IJKK). Ministerstvo Putei Soobshchenia. Upravlenie zheleznykh dorog. Otchot pensionnoi kassy sluzhashchikh na kazionnykh zheleznykh dorogakh, 190(>-] 906. (Ministry of Ways of Communication, Office of Railways. Report of the pension fund of the state railway employees, 1900-1906.) St. Petersburg, 1902-1908. Ministerstvo Putei Soobshchenia. Upravlenie zheleznykh dorog. Upravlenie dfelami Zheleznodorozhnavo Pensionnavo Komiteta. Svodnye balansy pcm- sionnykh i sberegatelno-vspomogatelnykh kaas, dfeistvmushchikh na russkikh zheleznykh dorogakh, 1905, 1906. (Ministry (.f Ways of Communication, Bureau of Railroads, office of the railroad pension committee. Summary of balances of the pension and saving benefit funds of the Russian raiboads, 1905, 1906.) St Petersburg, 1907-1908. Ministerstvo Putei Soobshchenia. Upravlenie zheleznykh dorog. Statistika slu- zhashchikh na zheleznykh dorogakh, uchastnikov pensionnykh i sberegateino vspomogatelnykh kass, 1899-1903. (Ministry of Ways of Communicaticm, Office of Railways. Statistics of railway employees holding membersliip in pension and saving-relief funds, 1899-1903.) St. Petersburg, 1901-1905. Ministerstvo Putei Soobshchenia. Otdfgl Statistiki i Kartografii. StatishchcHki sbornik ministerstva putei soobshchenia. Vypusk 1-90. (Ministry of Ways of Communication, Bureau of Statistics and Cartography. Statistical Annual of the Ministry of Ways of Communication. Issues 1-90.) St. Perterbiirg, 1885-1907. Ministerstvo Putei Soobshchenia. Upravlenie zheleznykh dorc»g. Vrachebno- Sanitamaya Chast. Otchot o vrachebno-sanitarnom sostoianii exploatiruemykh zheleznykh dorog, 1902-1907. (Ministry of Ways of Communication, Adminis- tration of Railroads, medico-sanitary section. Report on the medico-sanitary condition of the raiboads in operation, 1902-1907.) St. Petersburg, 1904-1909. Gorny Uchionny Komitet Sbornik. Sbornik statisticheskikh svedenii o gomozavi.d- skoi promyshlennosti. Rossii, 1895-1908. (Scientific mining commission. Col- lection of statistical information concerning the mining industry of Russia ) St Petersburg, 1897-1907. Trudy Vysochaishe Uchrezhdionnavo Rossiiskavo Torgovo-Promyshlennavo Siezda 1896 goda, v Nizhnem Novgorodlg. Tom 1-7. (Proceedings of the Russian Congress of Commerce and Industry, in Nizhni Novgorod, 1896. Volumes 1-7 ) St. Petersburg, 1897. Siezdy Pred8ta\4telei Promyshlennosti i Torgovli . Materialy po rabwhemu voprof^u. (Congress of the Representatives of Commerce and Industry. Documents on the labor problem.) (a) Predvaritelnye proiekty po peresmotru rabochevo zakonodatelstva, vyrabotannye Ministerstvom Torgovli i Promyshlennosti v sovieshcha- nii 15-21 aprielfji 1906 goda. (Preliminary projects for reform of labor legislation, prepared by the Ministry of Commerce and Industry during the conference of April 15-21, 1906.) St. Petersburg, 1906. (b) Obiasnitelnaia zapiaka k predvariternomu proektu po peresmotru rabochavo zakonodatelstva, vyrabotannomu Ministerstvom Torgovli i Promyshlennosti v sovieshchanii 15 21 apriella 1906 goda. (Explana- tory report accompanying the preliminary project for reform of labor legislation, prepared by the Ministry of Commerce and Industry during the conference of April 15-21, 1906.) (c) Protokol sovieshchanii pri Sovietie Siezdov Predstavitelei Promysh- lennosti i Torgovli povoprosu ob obfazatelnom strakhovanii rabochikh ot neschastnykh sluchaev, proiskhodivshikh v St. Peterburge v li CHAPTER IX. WORKMEN S INSURANCE IN RUSSIA. 2317 fevralie 1907. (Minutes of the conferences concerning obligat^ory insurance of workmen against accidents which took place in St. Petersburg in February, 1907, under the auspices of the Council of the Congresses of Representatives of Commerce and Industry.) PRIVATE PUBLICATIONS. Balabanov, M.: Fabrichnye zakony. Sbornik zakonov, rasporiazhenii i raziasnenil po voprosam russkavo fabrichnavo zakonodalelstva. (Factory laws. A collec- tion of laws, orders, and decisions pertaining to questions of Russian factorj- legis- lation.) Kief, 1905. Bodicker, Dr. T.: Die Arbeiterversicherung in den Europaeschen Staaten. Leipzig, 1895. Dementiev, E. M.: Zakony o vosnagrazhdenii rabochikh, poterpevshikh ot neschast- nykh sluchaev, so vslemi izdannymi v ikh ispolnenie instruktziami i adminis- trativnymi rasporiazheniami. (Laws pertaining to compensation of workmen injured by accidents, with all instructions and executive orders issued for the purpose of their administration.) St. Petersburg, 1907. Fon-Ditmar, N . F. : Zakonoproekt o \TachebnoI pomoehchi rabochim. (The legislative proposal on medical assistance to workmen . ) Kharkof , 1908 . Kedrov, P. I.: Yoznagrazhdenie u^aechnykh rabochikh po zakonu 2 iunia 1903 goda. (Compensation of injured workmen according to the law of Jime 2, 1903.) Mos- cow, 1908. Litwinov-Falinskil, V. P.: Fabrichnoye zakonodatelstvo i fabrichnaia inspektzia v Rossii. (Factory legislation and factory inspection in Russia.) St. Petersburg, 1900. Litwinov-Falinskil, V. P.: Novyi zakon o voznagrazhdenii uviechnykh rabochikh. (The new law concerning the compensation of injured employees.) St. Peters- burg, 1904. Litwinov-Falinskii, V. P. : Organizatzia i praktika strakhovania rabochikh v Germanii i uslovia vosmozhnavo obespechenia v Rossii. (The organization and practice of workmen's insurance in Germany and conditions of possible pro\"ision in Rus- sia.) St. Petersburg, 1903. Litwinov-Falinskii, V. P.: OtNdetstvennost predpriminatelei za uvHIechia i smert rabochikh. (Employers' liability for injuries and death of workmen.) St. Petersburg, 1900. Luntz, M.: Rabochii vopros i fabrichnoie zakonodatelstvo v. Rossii. Russkoye Bo- gatstvo. aprielia i maie 1904. (The labor problem and labor legislation in Russia. Published in the magazine Russian Wealth, April and May, 1904.) Mikulin, A. A.: Fabrichnaia inspektzia v Rossii. (Factory inspection in Russia.) Kief, 1906. Moskovsakaia Birzha. Doklad sostoiashchei pri Moscovskoi Birzhe Kommissii po rabochemu zakonodatelstvu po povodu zakonoproekta * ' o strakhovanii rabochikh ot neschastnykh sluchaev." (Moscow Exchange. Report of the commission on labor legislation of the Mosco" Exchange, concerning the bill for insurance of workmen against accidents.) Moscow, 1908. Moskovskaya Birzha. Doklad sostoiashchei pri Moekowskoi Birzhe Kommissii po rabochemu zakonodatelstvu po povodu zakonoproekta '*ob obespechenii rabochikh na sluchai bolezni" i '*o vrachebnoi pomoshchi." (Moscow Exchange. Report of the commission on labor legislation of the Moscow Exchange, concerning the bill for "provision for workmen in case of sickness" and "for medical assistance.") Moscow, 1908. Osetzki, F.: Smert i Uv^chie pri exploatatzii zheleznykh dorog. (Death and injury in railroad operation.) St. Petersburg, 1890. f 2318 REPORT OF THE COMMISSION^ER OF LABOR. (Workmen's insurance in Russia.) Press, A. A.: Strakhovanie rabochikh v Rossii. St. Petersburg, 1900. Prokopovich, S. N.: K rabochemu voprosu v Rosnii. (Concerning the labor probl«im in Russia.) St. Petersburg, 1905. Shishkin, H. N.: Zapiska ob obshchikh nachalakh upravlenia strakhovanii tova- rishchestvami i ob organizatzii strakhovykh sudov. (Memoriiil concerning the general principles of administration of insurance associations and the organiza- tion of insurance courts.) St. Petersburg, 1907. Skarzhynski, L. B.: K voprosu ob obespechenii rabochikh ot posliedstvii neschast- nykh sluchaev. (Concerning the provision for workmen against results of acci- dental imjuries.) St. Petersburg, 1903. Skarzhynski, I^ B.: K voprosu o obiazatel'nom strakhovanii na slu»h£u[ invalidnosti. Doklad dlia pervavo zasiedania Kommissii po strakhovaniu na eluchal 8taro*»ti, V Obshchestve dlfa sodiestvia russkoi promyshlennosti i torgovli. (Concerning the problem of obligatory invalidity insurance. Report to the first session of the old-age insurance commission, in the Society for Encouragement of Russian Industry and Commerce.) St. Petersburg, 1902. Skarzhynski, L. B.: K zakonoproektu strakhovania v Rossii raborliikh na sluchal invalidnosti i na starost. Tretii doklad Kommissii po strakhovaniu na sluchai starosti, v Obshchestve dlia sodfeistvia russkoi promyshlennosti i torgovli. (Con- cerning the legislative proposal for insurance of workmen in Russia against invalid- ity and old age. The third report of the old-age insm^nca commission to the Society for Encouragement of Russian Industry and Commerce.) St. Peters- burg, 1903. Soviet Siezda Gomopromyshlennikov luga Rossii. Zakonoproekty po stkakhovaniu rabochikh. (Council of the South Russian Mine Operators' Association. Work- men's insurance bills.) Kharkof, 1908. Tigranov, G. Th.: Kassy gornorabochikh. (Miners' funds.) St. Petersburg, 1896. Tigranov, G. Th.: Kassy vsainopomoshchi rabochikh chastnykh gomykh zavodov i promyslov v Tzarstvle polskom. (Mutual-benefit funds of the workmen of private mining and metallurgical establishments of Poland.) St. Petersburg, 1900. Tigranov, G. Th., i Gussiatnikov: Vrachebnaya pomoshch rabochim na gomykh zaradakh i promyslakh. (Medical help to workmen in mining and metallur- gical establishments.) St. Petersburg, 1907. Tripoli tov, M. N.: Vitze-predsiedatel Obshchestva Zavodchikov i Fabrikantov. Vydacha posobii rabochim pri vremennol utratie trudosposobnosti ot neschastnykh sluchaev. (Vice president of the Mill Owners and Manufacturers' Association. The payment of subsidies to workmen in case of temporary disability resulting from accidental injuries) St. Petersburg, 1907. Tzitovich, A. L.: O pensionnykh kassakh v chastnykh uchrezhdeniakh. (Concern- ing pension funds in private establishments.) Kief, 1898. Zacher, Dr. : Die Arbeiter-Versicherung im Auslande. Bearbeitet von Dr. Zacher. Heft IX. Die Arbeiterversicherung im Ruswland, Beitrag von N. von Seelor. Berlin, 1899. Zacher, Dr.: Die Arbeiter-Versicherung im Au.^lande. Herausgegeben von Dr. Zacher. Heft IXa. Die Arbeiter-Versicherung im Russland. Bearbeitet von Graf. Louis Skarzynski. Berlin, 1905. CHAPTER X- WORKMEN'S INSURANCE IN SPAIN. 2319 CHAPTER X. WOEKMEN'S INSUKANCE IN SPAIN. INTRODUCTION. Spain is probably the least industrially developed country of western Europe, a very large proportion of its population being engaged in agricultural pursuits. Unfortunately the statistical infor- mation concerning Spain is very scant. The latest occupational statistics, published by the Instituto Eugrafics y Estadlstico, refer to 1889. They showed the following distribution: POPULATION OF SPAIN BY OCCUPATION OR INDUSTRY, 1889. Occupation or industry. Persons emi^05'ed. Occupation or industry. Persons emi^oyed. 'Vgricixlture 4,854.742 243,867 194.755 823,310 409,549 115,764 84,510 72,077 97,257 49,565 Teacher^, etc 39.136 Ind ustry (textile and mineral) {^.{\m TTI f* TOO Hotel keepers, etc 14.449 Total , known occupations Incisure da.'^'es ArXs and trades 0.998,981 Mprohant Tnarin© 29.918 Professions (legal, medical, etc.) TleliErious (Catholic) Asvlum inmates 91.226 Pupils in schools and coUegesi Not reported 1.719.«>5 Public erriDlovees . 8.728,519 Private and railway employees Grand total 17,568,599 Thus of about 7,000,000 persons with loiown occupations, industry (textile and mineral) claimed only 3i per cent and agriculture nearly 70 per cent. Adding together industry (textile and mineral) with arts and trades gives, for 1889, onl}^ a little over a million (1,067,177), or about 15 per cent of all persons with known occupations. While the industrial activity of Spain must have increased con- siderably during the last twenty years, it is still very much below the other countries of western Europe. Only the first steps have as yet been made by Spain in the field of work- men's insurance. The present status may be summarized in a very few words : Only two important measures have been passed in Spain concerning this field of labor legislation — the accident compensation act of January 30, 1900, and the act of February 27, 1908, estab- lishing a national institute for old-age pensions, which began oper- ations in 1909. The first-mentioned act introduced in Spain the system of compensation of workmen for industrial accidents in place of the older system of employers' liability. While putting upon the 2321 2322 REPORT OF THE COMMISSIONER OF LABOR. ^.^ CHAPTER X. WORKMEN S INSURANCE IN SPAIN. 2323 employer the entire cost of such compensation, the Spanish act leaves the question of insurance to the option of the employer though It endeavors to regulate and control the insurance companies wntmg accident insurance. The old-age insurance institute act of February 27, 1908, establishes only voluntary insurance of workmen against old age at their own cost, but with some sul>sidy from the otate. . Thus the entire system of workmen^s insurance in Spain is volun- tary The same holds true in sickness insurance, as far as this term can be used, there being in Spam a certain number of mutual benefit societies, whose most important function is mutual help in ca^e of sickness. The membership of these societies is not very large and any information concerning them is diilicult to obtain. This chkpter of the report therefore, treats principally of accident insurance. The history of the law of 1900 is foUowed by an analysis of its pro- visions, by a few data concerning its applications, and 'by an account ot the efforts made during the last decade toward the reform and extension of the law. Statistics of accidents in Spain are so unsatis- tactory that only the most important data are reproduced In connection with the question of sickness insurance only some statistical information concerning the mutual benefit societies can be given. Under the caption of old-age insurance an account is given of the history of the efforts of the Institute of Social Reforms to establish a national old-age insurance institute, which efforts termi- nated m the act of 1908, the provisions of which are analyzed. Men- tion is also made of an interesting proposal to introduce a system of modified life insurance for workmen as a function of the national old- age insurance institution in connection with the proposal of a law to encourage home ownmg among the Spanish workmen, such Ufe insurance to act as security for the home in case of death of the purchaser. It is evident that Spain is not a leader in the field of workmen's msurance. It is following slowly the example of other Latin countries of Europe. ACCIDENT mSDRANCE. mSTOEY. The accident compensation act (or -law in regard to industrial accidents, as its official title reads) of January 30, 1900, represents the most important Spanish legislation in the domain of labor in- surance. Until the enactment of this law the compensation of work- men for mdustnal accidents was based upon the criminal and civil liability provisions of the Civil Code, which provisions were derived from the Roman legal ideas of responsibifity for the results of one's acts or for the acts of one's agent. Articles 1902, 1903, and 1908 of the Spanish Code are identical with articles 1382, 1383, 1384, and 1386 of the Code Napoleon, in effect in France and in Belgium, and the same requirements are found in the laws of Italy, Switzerland, Hol- land, etc. The results in Spain of the application of the laws relative to industrial accidents did not differ much from the results obtained in other European countries. By far the larger number of industrial accidents were uncompensated, while in the remainder compensation could be obtained only after expensive and prolonged litigation. It was stated by the Spanish delegate to the Third International Con- gress of Industrial Accidents and Social Insurance, held at Milan in 1894, that the absence from the Civil Code of any compensation provisions and the difficulty experienced in fixing the employers' liability had caused great neglect of all safety provisions and there- fore increased the frequency of industrial accidents. The shortcomings of the Civil Code were recognized as early as 1883, when the commission for social reforms (Comision deReformas Shciales) was organized to investigate the economic condition of labor in Spain. The question of compensation for industrial acci- dents was considered as one of the most important by the commission, and by June 7, 1887, it had formed the plan of a new liability act; but it took nearly thirteen years for an accident compensation law to be carried through the Spanish Cortes. The history of the re- peated efforts in behalf of the injured workmen presents a picture of evolution from old to new socio-legal notions relative to employers' liability, a process of evolution which is far from complete, for, as will be shown presently, earnest efforts are still being made to extend and strengthen the law of January 30, 1900. The bill formulated by the commission on June 7, 1887, proposed to extend the liability of the employer to all accidents which were not due to the negligence of the employee or to chance (whether "vis major," or ordinary chance). The burden of proof was to be shifted from the plaintiff to the defendant — i. e., from the emplo^'ee to the employer. The employer's responsibility was to be taken for granted, unless he could establish that the accident was due either to the neg- ligence of the injured employee or to unavoidable chance. Thus the shifting of the burden of proof was the main proposed deviation from the old law, since the employer as before was to be responsible only for accidents due to his own or to his agents' negli- gence; moreover, the employer could withhold from the salar3'of the responsible agent the amount of indemnity he was sentenced to pay. While the Civil Code makes the person guilty of negligence re- sponsible for the whole amount of damages caused, the bill recom- mended by the commission in 1887 limited the amount of responsi- bility. When contributory negligence of the injured person was 2324 REPORT OF THE COMMISSIONER OF LABOR. , •., established the courts were to adjust the claims to the respective degrees of negligence of both sides. This legislative plan was referred to a committee of the Senate, which returned it to the commission for social reform with instructions for further elaboration, suggestinss of hearing in either ear Double inguinal or crural hernia (a). Single inguinal or crural hernia (a) . . Per cent of dis- ability. 13 6 6 42 12 18 12 o This injury is of itself sufTicient to establish the existence of partial disability. The valuation of the minor accidents is for the purpose of assisting in the determination of total disability. As shown presently, the determination of the degree of disability must be by mutual consent, and various regulations exist for settling disputes. 2332 BEPOKT OF THE COMMISSIONER OF LABOR. CHAPTER X. WORKMEN S INSURANCE IN SPAIN. 2333 In case of death resulting from the accident the employer must meet the burial expenses up to 100 pesetas ($19.30) and furnish one of the foUowing indemnities: (1) If a widow and children or grand- children under 16 years survive they receive a sum equal to the average daily wages of the deceased for two years; when among the surviving children under 16 years of age there are some from a pre- vious marriage of the deceased the widow receives one-half of the indemnity, and the other half must be divided equally among the children, the widow receiving the share of her children, while the por- tion due to the children from the first marriage goes to the person taking charge of them, whether it be the widow oj- some one else; (2) if only children or grandchildren under 16 years of age survive, a sum equal to the wages for eighteen intmths; (3) when only a widow without children (this is the language of the law, and it was explained by the royal order of February 25, 1903, that by ' 'without children" was meant ''without children under 16") survives, a sum equal to wages for one year; (4) when only dependent parents or grandparents over 60 years of age survive, a sum equal to ten months' wages for two or more survivors, and seven mc^nths' wages for one survivor. These death benefits are paid in addition to any allowance for tem- porary disability made before death ensues. The employers may substitute the foUowing pensions instead of the death benefits described above, provided they secure the pay- ments to the satisfaction of the injured person or his beneficiaries : (1 ) A pension of 40 per cent of the annual wages of the deceased when the widow and children or grandchildren under 16 years survive; (2) a pension of 20 per cent to the widow if no chUdren survive; (3) a pen- sion equal to 10 per cent to each dependent relative in an ascending line (parents or grandparents), with a maximum of 30 per cent. The pension to the widow is discontinued at remarriage and to the chil- dren at 16 years of age. Nothmg is said in the law about pensions instead of indemnity when only children or grandchildren under 16 years of age survive. Such substitution of pensions for lump-sum payments is not permitted in the War and Navy ministries. All indemnities are to be increased by 50 per cent when the acci- dent happens m an establishment which failed to provide the meas- ures for prevention of accidents required by the law. Since the amount of compensation depends upon the wages or earnmgs of the injured, the method of determining them is of great importance. In case of temporary disability the law speaks of dailv wages (jornal diaHo); in case of permanent disability, of earnings or salary (salario) ; and in cases of fatal accidents, of average daily earnings (saUrio medio diario). By wages is meant tlic actual remu- neration received by the employee in money, or in any other form, per day, not counting the holidays. By order of November 5, 1902, it was explained that in cases of permanent disability the actual wages on the day of accident must serve as the basis of computation. In fatal cases the indemnities to the relatives are computed from the average wages of the deceased. In any case the daily wages must not be considered less than 1.5 pesetas (29 cents), even in case of an apprentice receiving no pay. The part of remuneration which the employee receives in kind, in lodgings, or in any form must be estimated according to local cus- tomary prices. When the wages are contracted for a certain definite task, the average wages for similar work in the same or similar indus- try must be taken. In case of enlisted men in the War Department, who do not receive their entire wages in cash, the compensation must be computed from the fair cost of food and clothing in addition to the pay. In case of task wages the computation must be based on the earnings for the preceding fortnight or the average wages of workmen in the same or similar occupation. The minimum daily wage is considered as 1.5 pesetas (29 cents). The same rules apply to the Navy Department. GOVERNMENTAL SUPERVISION. Insurance against risks imder this law is not compulsor}^, but vari- ous efforts are made to stimulate voluntary insurance, the Govern- ment undertaking to exercise careful supervision over the insurance companies. The law permits the employer to transfer any or all obligations to any insurance company or association authorized by the minister of interior to carry such insurance, by paying the cost of such insurance, provided the compensation paid by such insurance company is not lower than that granted by the law. The ministers of war and navy, for whom specified regulations have been issued, are not permitted to insure against the risk of accident indemnities. Insurance organizations, whether mutual societies or stock com- panies, desiring such authorization by the Ministry of Interior must completely separate the accident insurance business from other insur- ance business, furnish separate security, accept the requirements of the law in regard to compensation, and furnish to the Government complete reports as to their activity and financial standing. The accident insurance business is further regulated by the decree of August 27, 1900, and orders of October 16 and November 10, 1900. In applying to the minister of interior for authorization to do accident insurance business the insurance company must furnish a copy of its charter, by-laws, address, names of directors, and amount of capital. A list of authorized companies must be published in the Gaceta de Madrid every three months. Reasons for refusing an authorization or for withdrawing it and for excluding an insurance society from the authorized list must be stated in writing, and upon 2334 BEPORT OF THE COMMISSIONER OF LABOR. demand of the insurance company must also be published. A pri- vate insurance company must deposit a bond of 225,000 pesetas ($43,425) with the Ministry of Interior, and a mutual insurance com- pany must deposit 5,000 pesetas ($965). The bond is reduced in case the insurance company or association has other bonds deposited with the Ministry of Finance as security in other lines of insurance. The bonds may be ^ven in government, bank, raiboad, industrial, or other securities or in real-estate mortgages, provided the property is located on the peninsula or in the adjacent isles. When the value of the securities faUs 20 per cent below the value whcm accepted, the bond naust be replenished. The comi)any or society must agree to be subject to the special Spanish tribunes for consideration of acci- dent cases. It must furnish its constitution, by-laws, regulations, rates of premiums, rules in regard to formation of reserves, mortality tables, interest tables, tables for computing the reserves for life ])en- sions, annual balance sheets, and complete records of their trans- actions, which data shall be used for annual pubUcation of reports in regard to accident insurance companies. If practicable, a valua- tion of all obligations incurred by the msurance companies shall be made every five years. These reports may be verified by the minis- ter of interior as the minister of finance may verify the reports of other insurance companies. The insurance written by these companies must conform to the demands of the existing laws, especially as to the classes of accidcmts covered and the form and amount of indemnities. It must not be written at lower rates than those formally in force. Moreover, if the ministry should decide that competition among companies has re- duced the rates below a safe level, as shown by the experience of accident insurance companies in other countries, it may legally estab- lish minimum rates. To advise the ministry in this supervision of accident insurance a special commissioner general of insurance {asesor general de seguros) is appomted m the ministry and ]m is to receive as compensation the proceeds of a special annual registry tax, which has been placed at one-tenth of 1 per cent of the amount of bonds deposited with the ministry. Mutual insurance associations are subject to the same regulations as the stock companies with the important exception of the very great difference in the amount of bond. Mutual associations must contain at least 20 employers and msure at least 1,000 employees. The eariy regulations required these employers to be in the same branch or at least in similar branches of industry, the grouping in the case of similarity to be determmed by the Ministry of Interior until a classification of mdustries is established. This was declared to be an arbitrary limitation, which permits the federation of mutual associations consisting of many different groups of smaUer size as CHAPTER X. WORKMEN S INSURANCE IN SPAIN. 2335 long as the requirements as to 20 employers and 1,000 employees are fulfilled by the entire association. The members of a mutual association are mutually responsible for the obligation imtil com- plete liquidation. They may reinsure the life pensions in any of the recognized insurance stock companies. PROCEDURE. Procedure under this act is regulated mainly by the royal decree of July 28, 1900. Within twenty-four hours from the time of the accident the em- ployer must notify the authorities, in writing, of the accident, giving time and place, name of the injured, his wages, place to which he was taken, names of witnesses, name of the physician who gave the first help, and name of the insurance company if the injured is insured. In case of an accident occurring on board of ship the report must be made within twenty-four hours after arriving at a Spanish port or at a foreign port having a Spanish consul. When an accident has occurred, the employer is required to furnish immediate medical help and drugs. The first obtainable physician must be called in an emergency, but for subsequent treatment the employer has the right to choose the physician. The name of the physician so selected by the employer must be communicated to the authorities within forty-eight hours. In absence of such report, the physician who is treating the injured employee is assumed to act on behalf of the employer. The employer's physician must be given the same privileges as a court physician if the injured employee is taken to a hospital. The employer's physician must furnish the follo\nng certificates: (1) At the time of the accident, whether the injured per- son has been disabled from performing his work (all the details of the injury to be stated in this certificate) ; (2) at the time of recovery, with permanent disability, the character and extent of such disability; (3) in case of death, the death certificate, giving the result of autopsy if one was performed. These certificates are sent by the physician to the employer, who must forward certified copies, each bearing his signature, to the authorities within twenty-four hours. The contents of the certifi- cate of recovery, with degree of permanent disability, must be com- municated to the injured person, who may state over his signature on the same certificate whether he agrees with its contents. In case of disagreement as to the question of complete recovery or the degree of disability, the injured person may designate his own physicians to make a reexamination in conjunction with the em- ployer's physician; all physicians present must fill out a certificate stating either the opinion agreed on or the causes of disagreement. In the case of disagreement three copies of the certificate must be 2336 KEPORT OF THE COMMlSblONEB OF LA30K. prepared, one each for the employer, the injured person, and the civil governor of the Province, and tlie latter shall forward the cer- tificate with all the papers pertaining to the case to the academy of jnedicine, which renders final decision in the case. The opinion of the academy is communicated to the civil governor and a copy of it is furnished to the employer and to the injured employee. The same procedure is followed when death occurs some time after the accident and doubt is raised whether it was due to the accident. Also a medical examination as to recovery or disability must be made in those cases where criminal prosecution is begun against the employee for crim- inal negligence or misconduct. If both parties can agree, no inter- vention of the authorities is required for the settlement of claims. Nevertheless certain necessary formalities must be complied with so that a record of each case may be preserved. The emplo^^er is required to notify the authorities as soon as he begins to meet the obligations of the law, snxd also when the final settlement is made, when a pension is granted, or when the obligations are transferred by insurance. All the conditions must be stated in the re})ort, which must be signed by the claimants or their representatives as evidence of their agreeing to their settlements. In the capitals of Provinces all reports must be sent directly to the office of the provincial governor or to the local pohce office. In all other mimicipalities the reports must be sent to the municipal authorities, who in turn must immediately forward them to the office of the governor. In addition it is required that the records of all cases be kept in the office of the civil governor, whence the statistical information is forwarded to the Ministry of Interior. In normal cases the registration limits the length of governmental interference in the cases. While the settlement of differences arising out of claims is left to courts, the enforcement of the law and the regulations is in the hands of the civil authorities. When the employer fails to comply with any of the regulations, such as those requiring giving notice of an accident or furnishing medical help, complaints may be brought before the civil authorities. All such complaints are to be made in duplicate, one of wliich is returned as a receipt to the complainant with the signature of the proper officer. The local civil authorities, upon receipt of such complaint, must immediately notify the civil governor and call upon the employer for compHance with the demands of the law and the regulations. If such action brings no result within forty-eight hours, the case is to be turned over to the judge of the first instance, who is to enforce compUance with the law. The civil governor is notified of this action. Failing to receive satisfaction from the local authorities, the interested party may appeal from their decision to the civil governor, CHAPTER X. workmen's INSURANCE IN SPAIN. 2387 and from h i m to the minister of interior. , Complaints arising out of differences of opinion in regard to the amount of compensation, but not out of noncompUance with the law, are to be turned over to the courts of first instance. In all cases of noncompliance with the demands of the law and the regulations, the government authorities must support the complaints of the workers. Accordingly the local authorities inform the gov- ernor of any failure to comply with the law and the regulations, even if the injured employee has entered no complaint, or in case he has complained, if his complaint has not had the desired effect. The gov- ernor communicates with the employer and if necessary with the courts. All measures must be reported to the Ministry of Interior, but the ministry does not intervene unless the case reaches it through a complaint from either party or from the lower authorities. By the original law, until the establishment of special tribunals for adjudication of such disputes, the cases under this act were placed under the jurisdiction of the courts of first instance and made subject to the rules for verbal procedure. The time limit for entering suit is placed at one year. The em- ployee appearing as plaintiff must be considered as a poor htigant, as far as expenses of Htigation are concerned. All contracts waiving the benefits of the compensation act are to be adjudged null and void. Though ten years have passed since the adoption of the com- pensation act, the courts of arbitration, consisting of employers and employees, have not yet been organized. On March 13, 1900 — L e., about six weeks after the adoption of the compensation act — a law was passed regulating woman and child labor, and communal and provincial commissions of social reforms wxre created for purposes of facihtating the administration of this law. The communal com- missions were to consist of an equal number of employers and em- ployees, not over six, the local mayor as representative of the civil authority, and a representative of the church. The provincial com- missions of social reform consist of delegates from the local commis- sions, under the chairmanship of the civil governor. These commis- sions were to be estabhshed as a temporary measure until the adop- tion of a law in regard to the mixed courts of arbitration. Both parties may agree to submit their differences to these commissions in all cases except those involving criminal responsibility for the accident. The procedure is slightly modified in regard to accidents to work- men employed in these two ministries. Wheuever possible, first, an army sui-geon, or, second, a navy surgeon, must be called to assist the injured employee of the Ministry of War, and the same rule applies in reversed order to the Ministry of the Navy. In either case a private 2338 BEPOET OF THE COMMISSIONER OF LABOR. phjsician may be called in an emergency, if necessary. Further treatment must be left to the army or navy surgeon. The injured must enter a mihtary or naval hospital, unless the physician in charge agrees to outside treatment. Refusal to be treated according • to the official physician^s order leads to loss of right to compensation. The necessary medical certificate is to be made by an army or navy sui^eon, and when a disagreement arises between the surgeon and the injured employee as to the medical opinion it may bo referred to two other army or navy surgeons, or to a board of two such surgeons and two physicians selected by the injured person. When there is a disagreement, the case is referred to the district mihtary sanitary inspection office, which appomts a board of Rve witli the chief inspec- tor as chairman. The reports of all accidents are sent to the office of chief of the military district, where a hst of them is kept; reports of the cases where indemnity is granted are forwarded to the Mhiistry of War, and copies are sent to the Ministry of Interior. Apphcations for reUef are made to the military governor and the amount allowed is chained to the appropriation for the work in which the accident has occurred, or to other funds if necessary. In case of disagreement, the injured or his dependents may seek redress before the judge of first mstance. Similar rules govern the granting of compensation to employ (^es in the IVImistry of the Navy, naval officers being substituted for military officers in the regular procedure. The governors are required to transmit to theMmistry of Interior statistical schedules of accidents and indemnities and to pubhsh annually statistics of industrial acci- dents. The form of blanks is prescribed. The preliminary report of the accident must be forwarded immediately to the ministry, and the complete statistical reports must be forwarded every three months. The employers are required to furnish all the information necessary for these reports. The duty of pubUshing these statistics was later transferred to the section of industry and commerce of the Ministry of Agriculture, Industry, Commerce, and Public Works, from which it was again transferred on December 31, 1904, to the Institute of Social Reforms. PREVENTION OF ACCIDENTS. A peculiarity of the compensation act is the inclusion in it of the subject of prevention or decrease of accidents, which wore clahned to be excessive in Spain because of the inadequate use of methods of prevention. For this purpose a technical commission was created to consist of one architect and three engineers, two of whom were named by and come from the commission (now institute) of social reforms and one from the Royal Academy of Exact Sciences. The members of this CHAPTER X.- -WORKMEN's insurance in SPAIN.* 2339 commission were to serve without compensation. This commission was required to elaborate and present to the Ministry of Interior within four months a list of apparatus and measures for the preven- tion of accidents. The Grovemment was ordered, after consulting with this commission, to issue regulations for the introduction of measures for the prevention of accidents and the protection of life, safety, and health of the workmen employed. It was further pro- vided that the commission should estabUsh a museum for the pres- ervation of models of such safety appliances and for testing new mechanisms, with the view of including in the hst those that proved to be serviceable. The increase of the amount of compensation by 50 per cent where such required safety appliances have not been used is evidently intended mainly as a measure to stimulate strict complance with the law. In advance of the report of the commission the employers were required to use all possible means to insure the security of the worker. All customary precautions were made obligatory, such as railings on scaffolds, fences around wells, shafts, and ditches, signals when Hghting fuses, brakes for elevators and transportation machinery, and similar apphances for new work and processes. Such appHances must be constructed with the purpose of protecting the worker against the consequences of ordinary carelessness which is the nec- essary result of continuous performance of dangerous work. In addition, the usual health and sanitary regulations must be comphed with, and also the special orders of similar nature promulgated by the technical commission. Use of deficient machinery and apph- ances, execution of work with an insufficient working force or insuf- ficient material, as well as intrusting unfit persons with dangerous work without giving them proper directions, shall be considered as negligence. Special care in complying with the regulations as to the safety appliances is demanded when children are employed in the establishments. The list of safety apphances was pubhshed. It consists of six chapters, giving the required apphances for factories and workshops, construction, building, mining, generation and transmission of elec- tricity, and commercial establishments and warehouses. I* i STATISTICS OF OPERATIONS. Little information concerning the results of the apphcation of tlie act of 1900 can be obtained, because statistical data are meager. The General Association of Insurance Companies pubhshed tlie following data concerning the number of cases compensated and tlie amount of compensation paid. It is probable that this table is far from being complete, but it is probably sufficiently accurate for the *ii § 2340 BEPOBT OF THE COMMISSIONER OF LABOB. purpose of showing the total and the average amoimts of compensa- tion, which amounts appear to be extremely small. Theiul STrat" S'S 3 c'T't*"'^^ "^ "^'"^ -- -nverteTrtTh^ normal rate of 19.3 cents. As a matter of fact, however, the value of the Spanish peseta fluctuates between 14 and i? .-ents, ^o the com! pensation is even smaUer than shown in the table. NUMBER OP ACCIDENTS TO WAOB-EARNEES AND COMPENSATION PAID BY RF8ULTS OF ACCIDENTS AND YEAES. 1902 TO 1900 RESULTS Result of accident and year. Fatal: 1902 1903 1904 1905 1906 Number of acci- dents. Comi>ensation paid. Av»age for 5 years. 162 239 244 162 158 Total. Per case. Total permanent disabilitv- 1902 ^ 1903.... 1904 ::::::::::; 193 Average for 5 years. Partial permanent disabilitv: 1902 ^ 1903 :::; 1904 :;:; • 1905 1906 ..-•••- 46 38 35 73 86 $42,874.54 64, 283. 78 59,003.52 43,38,5.18 32,216.42 46,352.69 1264.66 227.13 241.82 267.81 203.90 240.17 Average for 5 years. Temporary disability: 1902 ' 1903 1904 : 1905 1906 :::::::: Average for 5 years . Total accidents: 1902 1903... :::::; 1904 1905 .■."::::"■■ 1906 ..:•; 56 187 325 446 395 4^ 14.412.61 10, 61)2. 34 9, 9H9. 36 25,529.89 12,559.87 313.32 280.59 285.41 349.72 146. 05 359 14, (>30. 81 33.410.97 54, 686. 09 76,694.37 61,167.00 69,114.41 263.14 27,586 31,388 33, 444 26,686 31,501 30. 121 67,014.67 140.236.17 173,618.03 197, 4,52. 79 175,541.43 181,470.10 178.67 168.26 171.96 154.85 133.44 Average for 5 years. 27.981 31,990 34,169 27, 316 32,188 30,729 173,66.1.70 230,934.29 293, 25(». 24 343. 14(1. 04 305,623.50 285,360.80 158.73 5.08 6.53 5.90 6.68 5.76 5.77 291,661.77 8. 25 9.17 10.04 11.19 8.87 9.49 nuLer'of'^l'Hlf"' \"^^" '? '''"'■"'^' '' '^ -gnificant that the number of accidents each year does not show the tendency to increase tiiat IS shown in most countries under the influence of a com^eLS tiors'^sfnt^itt.f" !'^{.*«"*I«'»te reported to insurance institu- tions. Since 1902 the Institute of Social Reforms has published an- data of tlie insurance companies. For 1906 and 1907, these report CHAPTER X. workmen's INSURANCE IN SPAIN. 2341 state the number of accidents compensated by the employers directly and those, compensated by the insurance companies. By reference to the data for these years, an approximate idea may be obtained of tlie extent of accident insurance practice by the Spanish employers. Of the cases in 1906 definitely reporting, 38.1 per cent were compensated by the employers, and 61.9 per cent by the msurance companies; in 1907, there were compensated 36.5 per cent by the employers and 63.5 per cent by the insurance companies. NUMBER OF CASES OF ACCIDENTS COMPENSATED BY EMPLOYERS AND BY INSUR- ANCE COMPANIES, BY RESULTS, 1906 AND 1907. [Source: Instituto de Reformas Sociales. Estadlstlca de los Accldentes del Trabajo ocurridos en los a&os 1906 y 1907.] ^^ Cases of accident resulting in By whom comj>ensated. Tempo- rary disa- bility. Perma- nent disa- bility. Death. Total. „ . 1906. Employer 6,992 11.469 4,172 36 26 17 72 33 69 Insurance company Not reported - — i i !" - i !]!]!!!!!!!!] 1 ] 7,100 11.628 4.258 Total 22,633 79 174 • 22.886 Employer Insurance company Not reported 8.428 14,J:19 6,917 69 34 8 89 43 76 8.57» 14.896 *7.fl00 Total 30,164 101 207 30.472 a Not Including 1 ,639 cases not compensated. 6 Probably includes the cases not compensated It appears from the above data tliat insurance against accidents, though voluntary, became popular among tlie employers under the pressure of the law. No sooner were the law and the regulations promulgated than the insurance companies, both the domestic and foreign (French, Itahan, and Swiss), reached out for the new business. During the first year of the application of the law 3,262 insurance contracts were issued, insuring 123,597 emplovees and collecting in premiums 678,569 pesetas ($130,963.82). By 1906 ten private societies were inscribed in the authorized list of the private insurance companies. Because of the anxiety to acquire tliis new business the insurance rates were often reduced so low that it was not long before demands were made for establishing minimum rates through governmental regulation to secure the solvency of the accident insurance companies. Mutual associations also began to form, and by 1906 their number equaled that of the private insurance com- panies; but tlie number of workmen insured in these mutual associa- tions is small, the number of compensated cases in 1906 amounting to only 2,054, or a little over 6 per cent of the total number. The data of the insurance companies show that the highest amount of compensation paid was in 1904, when it reached 1,777,929 pesetas 2342 BEPORT OF THE COMMISSIONER OF LABOR. ($343,140). A rough estimate of 50 per cent of this sum, or 889,000 pesetas ($171,577), for the cases not insured would bring the total cost up to about 2,667,000 pesetas ($51 5,000) in round numbers. The high cost of insurance and the failure of mutual insurance societies to compete successfully with the private insurance (companies would probably increase tliis amount. In tlie proposed reform of the law the encouragement of the mutual insurance companies occupies a prominent position. PBOPOSED BSFOKMS. REPORT OF THE LABOR DELEGATES. The movement for the revision of the compensation act of 1900 became noticeable in 1904, when the labor delegates of the Institute of Social Reforms presented the above-mentioned memorial, and after more than three years of preparatory work the institute on July 4, 1907, published a draft of a new bill for presentation to the Government. The report of the labor delegates took up each article of the law of 1900 for consideration and suggested the following modifications: (1) The delegates claimed that tlie wording of the law of 1900 embraced all bodily injury done to the workman, i. e., not only accidental injuries, but also occupational diseases, and asked for specific changes in the language of the law to clear away possible doubts. (2) In view of the adverse decision of the courts they asked for a clear statement that where the employee contracted not only for his own wages but for those of his assistant or partner he should be considered an employee and not a contractor. (3) Again, in view of the adverse decision of the supreme court as to the compensation in cases of ordinary negligence the memorial asked for an explicit declaration that trade negligence, or that which follows habitual exercise of any occupation, should not reheve the employer from his obligation. Only ordinary negligence is men- tioned; by impUcation cases of gross negligence are left out of con- sideration, though in the language of the original law notliing was said of cases where the employers were relieved oi their obligations because of the negligence of the employee. (4) The report enei^etically protested against the injustice of granting the right of compensation to certain classes of employees and denying it to others ; especially against leaving out agricultural laborers; it suggested that all industries and branches of work be covered by the law. (5) In cases of temporary disability an allowance of half the daily wage is granted by the law ; the question of holidays remained CHAPTER X. WORKMEN S INSURANCE IN SPAIN. 2343 open and was by the order of November 5, 1902, decided in favor of paying the allowance for the holidays as well. The labor dele- gates asked that tliis order be embodied in the law. (6) In case of partial permanent disabihty the law permits the employer to substitute reemployment at the old rate of wages for a money compensation. In the report the possibiUties of abuse of this method are claimed to be self-evident, and the exclusion of this clause was suggested. (7) In furnishing medical help and drugs the law permits the em- ployer to choose the physician and the drug store. Only in case of disagreement as to the medical opinion does the workman have the right to choose his physician as one of the referees.. In the opinion of the labor delegates the employee should have a right to have a physician at his own expense in addition to the employer's physician from the beginning of the illness. The em- ployer having the right to select the drug store is often guided by considerations of cheapness rather than of quality. The injured employee should have the right to select the pharmacy most con- venient to him. The medical certificate as to cure or permanent disability is necessary for entering the claim. The employer's physi- cian by delaying the issue of the certificate may seriously incon- venience the employee. To remedy tliis, the law should demand the issue of the certificate on the same day on which the treatment is dis- continued and make the failure to do so the presumption that medi- cal treatment was necessary until the certificate was issued by this or another physician. (8) In stating the compensation to the descendants of the deceased employee the law specifically mentions legitimate children. This was stated to be at variance with the elementary principle of justice, and the removal of this qualification was strongly urged, so that the protection be extended equally to the natural cliildren of the victim. (9) Th« age limit of 16 years for children receiving compensation or pension was also criticized. It was pointed out that the children of deceased public officials are entitled to pension until 22 years of age, and the same age limit was suggested for the children of employees killed by accidents. (10) While the compensation to a widow with cliildren is equal to two years' salary, when only children or grandchildren survive the compensation is reduced to eighteen montlis The labor delegates claimed that orphans were more helpless alone than when one of their parents survived, and that they should therefore be entitled to the same compensation as the widow. (11) Relatives in an ascending line are granted compensation only when over 60 years of age and if dependent. Both of these 67725°— VOL 2—11 54 2344 BEPORT OF THE COMMISSIONER OF LABOR. qualifications were claimed to be unriecessaiy and cause hardships, because a single worker, living with his parents, usually assisted them financially in some degree, and to that degree they were dependent upon him; the age of the parents was also of little imf)ortance as long as the fatal accident caused them a perceptible financial loss. (12) Approving the measures for j)revention of accidents, among others the preparation of the catalogue of safety appliances, the labor delegates suggested that in view of the rapid progress of tech- nical knowledge the technical commission should publish an annual report. (13) While approving the design of the law to stimulate accident insurance, the labor delegates criticised severely the provision of the law which relieves the insured emplo} er of his responsibihty, because the insurance companies were usually practicing a i)c»licy of delay to force the injured employee to agree to a peaceful agieement on terms unprofitable to him. Since the insurance contract is a transaction between the insurance company and the employer, the employee, not being a party to the agreement, should not be made to lose any rights thereby. The insurance company should be required to satisfy the claim within forty-eight hours after the disability is determined, barring which the employee should have the right to sue either his employer or the insurance company. (14) The adjudication of these cases arising under the law is left to the ordinary courts of first instance (until the special tribunals be established), and the supreme court has ruled that in accordance with the Civil Code the defendant must be sued at the place of his residence, which in case of both the insurance company and the individual employer is often distant from the location of the estab- lishment and therefore makes the prosecution of the suit almost impossible for the destitute employee. It was suggested by the delegates that these cases be put under the jurisdiction of the judge of the locality where the accident occurs. (15) Under the law claims may be made within one year from the date of the accident. Meanwhile suits may be instituted by either side because of the alleged criminal responsibility for the accident. As the claim for compensation must be settled with reference to the sentence in the criminal proceedings, the term of one year must be exclusive of the time taken in these criminal proceedings. Again, the employer may neglect to make the required immediate report of the accident, which neglect delays the judicial action. The year should therefore be counted from the day of making the report. (16) The law is exphcit in declaring all agreements or contracts renouncing the benefits of the law as null and void, but some courts have interpreted this rule to mean only such agreements as have been made before the accident occurred. It was therefore sug- CHAPTER X. workmen's INSURANCE IN SPAIN. 2345 gested that such changes be made in the wording of the law as would make clear that all such agreements were null and void, whether entered into before or after the accident. (17) The report concluded this long list of amendments with an earnest plea in favor of sujiplementing the existing legislation by some provision for guaranteeing the payments. The absence of such guarantee was termed an inexplicable omission and the con- sequences as very detrimental to the interest of the workmen. Reviewing the various methods adopted by the several European Governments, the labor delegates found fault with the French sys- tem of a special guarantee fund, which makes the responsible employer meet the burden evaded by the irresponsible one; they discarded the Belgian system because it stimulates the commercial insurance companies that carry accident insurance mainly for the profit to be derived from it; they found the German system of obligatory insurance in industrial associations the most satisfactory one, but admitted that Spanish industry was not yet prepared for such an organization. But holding mutual insurance associations preferable to private insurance companies, for both the employer and the employee, the labor delegates devised and proposed a rather complicated system, which would give the employer a choice between forming mutual associations or contributing a small special tax. The latter was to form a fund, from which the compensation would be paid by the State to the victims of accidents or to their depend- ents. This plan was to be put in operation when the compensation could not be collected in any other way. BILL OF THE INSTITUTE OF SOCIAL REFORMS, OF 1907. The report of the labor delegates served as a basis for consideration of the law by various divisions of the Institute of Social Reforms and many of the suggestions made by the labor delegates were embodied in the final draft approved by the institute on June 28, 1907. The following changes recommended by labor delegates were practically adopted by the institute without any changes, except in a few cases as to phraseology (the numbers being as in the pre- ceding list of seventeen): (2) That an employee who contracts also for the wages of his helper or partner is not to be considered an employer, and is not to be deprived, therefore, of his right to com- pensation ; (3) that accidents due to trade negligence be not excepted ; (5) that in compensating for temporary disability by a per diem allowance the hohdays be included; (6) the permission to sub- stitute reemployment at the old wages for the legal compensation due for permanent partial disability is withdrawn; (8) illegitimate children are recognized; (10) children left orphans after death of 2346 KEPORT OF THE COMMISSIONER OF LABOR. father from an accident receive the full two years^ pension; (11) parents or grandparents need not be over 60 years of age or prove their dependence to receive compensation; (14) the place of suing is to be the same as the locality where the accident occurred; (15) the extension of the period of limitation in those cases where criminal proceedings are instituted is agreed to; (16) agreements renouncing any benefits or rights under the law are declared to be null and void even if entered into aft^^r the accident. In addition a few other changes, almost all favorable to the in- terests of the employees, are embodied in the final draft of the institute. Thus, the person who accepts large contracts for work is to be con- sidered the employer and be held responsible, nevertheless it is specifically provided that the liabihty of the original proprietor of the estabhshment continues, though subsidiary to the responsibility of the contractor. Workmen employed in a supervisory capacity, but not receiving more than 10 pesetas ($1.93) per day in wages, and apprentices also are included among the classes of employees entitled to compensation. In the case of the apprentices such inclusion was ordered by the regulations, but it is now included in the text of the proposed law. The benefits of the law are also extended by this draft to foreign employees working in Spain. The rights of the children of a female employee who is killed by accident are extended. Under existing law they are; entitled ta com- pensation only in case they have no father, or have been abandoned. These limitations are dropped from the new bill. Under existing law the widower is not entitled to any compensation for the death of his wife in consequence of an accident. The new draft proposes to give compensation to the widower who, during the life of his wife, depended upon her for support. Though the institute suggested essential reforms in regard to the methods of determining the rate of wages, the final draft has not gone beyond including in the text of the law a few of th(^ provisions of the ''regulations," namely, that in this computation all forms of remuneration besides money wages must be taken into consideration, such as food, lodging, premiums, tips, etc, though only such addi- tional remunerations must be considered which are> normal in their character. The changes suggested by the labor delegates were carefully dis- cussed and modified in many particulars before the recommendations were given their final form. Occupational Diseases. — The suggestion of the labor delegates that the law cover all the occupational diseases, defined as all h^sions which the workman may suffer because of the habitual exercise of his occupation, met with strong opposition. The economic section of the Institute of Social Reforms pointed out that such diseases, gradually CHAPTER X. WORKMEN S INSURANCE IN SPAIN. 2347 acquired, belonged to the domain of invalidity insurance, rather than that of compensation of employees for accidents, and ofl'ered an amendment, by which only diseases acquired in an immediate, direct, and certain manner be classed with industrial accidents. The legal section of the institute approved this amendment, claiming that it was not new legislation, but simply an interpretation by the supreme tribunal embodied in the text of the law. In tlie general session of the institute it was decided to eliminate this amendment and leave the text of the law in its original form. Employments Covered. — The demand of the labor delegates that all employment be covered by the law, and no exceptions be made, was thought too sweeping. The claim was made that the law was in its experimental stage, and that it was preferable to extend its appli- cations gradually, though it w^s admitted that such extensions were possible and desirable. The greatest opposition was aroused by the demand for the inclusion of the agricultural laborers, whom the labor delegates thought especially in need of protection. While this need was not denied, many difficulties were held to be in the way of realizing this plan, such as the general backward condition of Spanish agriculture and its consequent inability to meet the additional cost of such compensation, as well as the difficulty of differentiating between the class of employers and that of employees in Spanish agriculture with its predominant class of very small holdings. The economic section of the institute argued that the extension of the law to all agricultural employment would be possible only under a system of compulsory insurance, for which the Spanish rural popula- tion was not yet prepared. It proposed, therefore, to substitute gradual extensions for the sweeping inclusion of all agricultural employment. As the existing law already includes accidents arising from the handling of agricultural machinery working with mechanical power, the nexl proper step was to include all employees in large agricultural holdings on which at least six persons are permanently employed. Further extension of the law to mercantile establish- ments and to office employees of industrial establishments was also admitted to be feasible. The economic section suggested the fol- lowing extensions: (a) Coke ovens and all establishments in which the products of mines and quarries are worked up; (6) glass factories; (c) chemical works, tobacco factories, and the manufacture of mineral and effervescent waters; {d) leveling and paving of streets; {e) mer- cantile establishments employing more than three persons; if) agri- cultural, forestry, and fishery establishments employing constantly more than six persons; (g) employees in offices and stores of manu- facturing and industrial establishments receiving less than 2,000 pesetas ($386), when injured in consequence of the usual work in such establishments. In the final draft of the institute this list 2348 BEPORT OF THE COMMISSIONEE OF LABOB. was somewhat further extended by includmg all mercantile estab- lishments, irrespective of the number of employees. The specific mention of all special branches of manufacturing industry, not only those suggested by the economic section but also those contained in the original law, was eliminated by substituting the general formula: ''AH factories, mills, and manufacturing establishments,^' while in the law of 1900 only those factories, mills, and manufactur- ing establishments are included which utilize mechanical power. In addition to this formula many separate branches of industry were included. The question of extending the provisions of the law to agricultural workers was considered of such importance that a s])ecial investiga- tion of the problem was undertaken by the institute. This report will be discussed later. Medical Help. — The suggestion of the labor delegates as to the right of the injured workman to have liis own physician and choose his own drug store was adopted by the institute with the limitation of the choice to such drug stores as were willing to charge according to the low prices established by the charity authorities. Age of Orphans. — The desire of the labor delegates to extend the compensation to the children under the age of 22 years of a fatally injured employee was considered excessive, and in the uisti- tute's draft all children under 18 years of age or those incapacitated from earning a livelihood are included*. The Prevention of Accidents. — In the part of the law referring to the prevention of industrial accidents few changes were proposed by the labor delegates, but the Institute of Social Reforms proposed extensive changes in regard to the organization of the technical commission, which was founded by the law of 1900 before the Institute of Social Reforms. The essence of these changes consists in requiring this commission to report to the Institute of Social Reforms, to coop- erate with the Royal Sanitary Council or the Academy of Medicine in all matters concerning industrial hygiene, and to intrust to the Institute of Social Reforms the administration of the law, an. 1907. 1908.(0) 4,276 4.614 2,330 3,271 1,154 1,185 456 483 540 213 157 82 266 92 1,897 131 81 1,750 5,116 5,010 3,529 3,61S 1,115 1,024 516 417 420 2(>8 242 76 162 66 540 112 50 23,008 24, .525 6, 760 6,635 5,186 3,231 1,564 1,146 1, 128 7&4 504 347 250 210 127 107 102 76 35 2,3ti0 30,472 5,931 6, .333 4,K20 2, -280 1,367 1,119 N26 452 n»:9 270 274 142 103 87 11 75 32 814 19C9. 7,286 6,443 4,952 2,721 1,518 1,309 814 468 909 260 386 76 119 101 91 25 1,466 25,505 28,944 a Not including the Province of Madrid. b This total is not the correct sum of the items; the figures are given as shown in thf^ original report. The reports also include tables classifying the accidents by causes, but these tables are not entirely satisfactory and they are not repro- duced for the reason that in the vast majority of cases the cause is not stated; thus in 1907, out of 30,472 accidents, 17,704, or 58.1 per cent, were reported as due to various causes, and 7,329, or 24.1 per cent, as due to unknowTi causes, leaving only 17.8 per cent of the cases for which the cause is stated. Of the accidents recorded in 1908, the cause was stated for only 7,555, or 29.6 per cent; and in 1909, for only 6,811 out of 28,944, or 23.5 per cent. The data in regard to the results of the accidents are also unsatis- factory, as all injuries are classified in 7 large groups: (1) Fatal cases, (2) those producing total and (3) those producing partial permanent disabihty, (4) grave injuries, (5) light injuries, (6) injuries for which the classification is reserved, and (7) injuries the results of which are unknown. These data are presented in the follo\\ing table. The striking feature of this table is the small number of cases of permanent disabihty and the large proportion of the light injury cases. The latter is explained in the report as due to the absence of a strict definition of an accident in the law, resulting in many minor injuries being reported. On the other hand, the small number of permanently though partially disabled is probably explained by the hmited class of injuries which are recognized by the law of 1900 as leading to permanent disability. i 2354 REPORT OF THE COMMISSIONER OF LABOR. NUMBER OF ACCIDENTS, CLASSIFIED BY RESULTS OF INJURIES, 1904 TO 19<)8. [Source: Instituto de Reformas Sociales. Estadlstica de los Accidentes del Trabajo oeurridos en los anos 1904-1908. Boletin del Instituto de Reformas Sociales, 1911. J Year. Light injuries. Grave injuries. Injuries as to the nature of which opinion is reserved. Iniurles of un- known result. Injuries resulting in permanent disability. Injuries resulting fataUy. Total. Partial. Total. 1904 13,008 19, 177 22,187 28.062 22,506 27,274 224 475 483 376 477 256 895 976 874 1.043 1.365 701 "'"2.155' 805 783 979 601 56 80 69 «71 ft35 30 ae 19 4 (/) 236 225 176 207 178 210 f 14. 363 c 23, 008 c 24, 525 c:{0,472 c 25, 505 c 28, 944 1905 190G 1907 1908(d) 1909 a Included with injuries resulting In total permanent disability. 6 Including injuries resulting in partial permanent disability. c This total is not the correct sum of the items; the figures are given as found la the original report. d Not including the Pro\ince of Madrid. t Including injuries resulting in total permanent disability. / Included in injuries resulting in partial permanent disability. The reports indicate a decline in the number of fatal cases and in their proportion to the total number of accidents, which in 1904 was 1.64 per cent and in 1908 0.70 per cent. While this may in part be due to the better reporting of minor accidents, there has been an actual decline in the number of fatahties from 236 in 1904 to 207 in 1907. For 1908 the data are unfortunately incomplete, because the accidents in Madrid were not tabulated; but excluding the 14 fatal cases in Madrid in 1907 there still seems to be a decUne from 193 to 178. The distribution of the accidents by the day of the week are avail- able only since 1906. As shown in the table following, the greatest number of accidents takes place on Monday. The number gradually falls toward the middle of the week, but rises again at the end of the week. NUMBER AND RELATIVE FREQUENCY OF ACCIDENTS, BY DAYS OF THE WEEK, 1906 TO 1908. Estadlstica de los Accidentes del Trabajo oeurridos en los anos 190<5-1908. Boletin del Instituto de Reformas Sociales, 1911. In computing the relative number the [Source: Instituto de Reformas Sociales 190<5-1908. Boletin del Instituto de ] average number of accidents per day was used as a base,] Day of week. Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total Unknown - Grand total.. 1906. Number of acci- dents. 2,989 2,751 2,642 2,584 2,565 2,739 1,107 17,377 7,148 24,525 Relative number. 1907. Number of acci- dents. 120.4 110.8 106.4 104.1 103.3 110.3 44.6 4.838 4,764 4.663 4.482 4.529 4,740 1,878 29,894 578 30,472 Relative num ber. 113.3 111.5 109.2 KM. 9 lUti.O 111.0 44.0 1908. (a) Number of acci- dents. 4.17i 4,011 3,980 3,987 3,908 3,884 1,483 25,427 78 25,505 Relative number. 114.9 110.4 109.6 109.8 107.0 106.9 40.8 1909. Number of acci- dents. 4,707 4.683 4.513 4,418 4.447 4,576 1,631 28,875 69 28,944 Relative nuinber. 114.1 111.1 109.4 107.1 107.8 110.9 39.5 a Not Including the Province of Madrid. CHAPTER X. WORKMEN S INSURANCE IN SPAIN. SICKNESS INSURANCE. 2355 i Sickness insurance of workmen is comparatively new in Spain. The progress made so far is due to private or cooperative efforts, without any interference, assistance, or regulation from the Gov- ernment. There are hospitals and similar institutions for treat- ment of the poor, which are supported either by pubhc or private charity and which do not make any special regulations for the wage-working population. As these establishments belong to the field of charity rather than of labor insurance, they will not be treated here. The existing institutions for medical or financial assistance during illness, which are organized more or less upon an insurance basis, may be classified in three groups: (1) The com- mercial sickness insurance companies; (2) the mutual sick benefit societies; and (3) the establishment funds. COMKEBCIAL INSUBANCE COMPANIES. Commercial organizations of sickness insurance confine their oper- ations to the field of medical aid, and while not limited to wage- earners, they have become popular principally among this class, being organized mainly in the large cities and among people of small means who desire to escape the expense of private medical advice. The plan of these sickness insurance companies is in some features similar to tliat adopted by various religious and fraternal associa- tions in the United States. Tlie insured secures free medical advice and drugs for a stipulated fee, whicli usualh- amounts to 1 peseta (19.3 cents) per month for a single member and 2 pesetas (38.6 cents) for a family. There is this difference, however, that instead of a physician or druggist being hired by a club or lodge under direct contract, they are hired usually at a much lower rate of remuneration by the managers of the insurance company, who derive large profits from the position of intermediaries between the insured and the physicians. The popularity of this form of insurance may be judged from the following figures. An official investigation in 1903 showed 30 such companies in Madrid alone. Of these, 21 reported their membership, which aggregated 35,434 families, with 141,736 persons insured and a gross income of over 1,000,000 pesetas (S193,000) and net profits of 478,368 pesetas ($92,325.02), or about 48 per cent of the gross income. («) Under such conditions many evils manifested themselves, such as an insuffi- cient number of physicians, who received very low remuneration and who furnished hasty medical advice as well as adulterated drugs. a Lea assurances sociales en Espagne, par Alvaro Lopez Nunez. (Congr^ Inter- national des Assurances Sociales. S'"^ session, Rome, October, 1908.) 2356 BEPORT OF THE COMMISSIONER OF LABOR. These evils called forth, in 1903, the above-mentioncMl official inves- tigation by the General Bureau of Health of the Ministry of Interior, which was carried on by several prominent professional men, physi- cians, and druggists. The report of this investigation subjected these insurance companies to severe criticism. As a result of this criticism tJie popularity of tliis form of insurance received a severe blow from whicli it is only now slowly recovering. Many of the small institutions suspended. Others have improved their methods, carrying out the provision of several regulating orders, such as the order of July 3, 1907, placing the maximum number of families to be attended by one physician at 150. HTJTTJAL BENEFIT SOCIETIES. Mutual benefit societies of workmen (industrial benefit societies) are growing rapidly in Spain. Their main function is mutual aid in case of sickness. The Institute of Social Reformn in 1907 j)ub- lished a report on workmen's associations in existence on November 1, 1904. It succeeded in obtaining altogether reports of about 65 per cent of existing organizations. Of the 1,867 organizations reported, 310,(«) or 16.6 per cent, had mutual assistance, mostly in case of sickness, as their main aim, and their membership equaled 88,206(«) out of a total membership of 348,265, or 25.3 per cent. The number of such societies is growing rapidly, as shown by the fact that of these 310 societies 200, or 64.5 per cent, were organized within the six years 1899 to 1904. In Madrid alone there arc 42 societies, with a membership of 30,266. There were 67 associations of workmen whose main object is defined in the report as ''accion catolica;" but many of these asso- ciations also have funds for mutual assistance. These 67 societies had a combined membership of 31,957. Or The report states the number of mutual benefit societies at a09 and their mem- bership at 84,426. To these has been added the "La Mutuahdad Obrera," with a membership of 3,780, described in the report as " Cooperativu m^dico-farmacdu- tica" (a society for cooperative medical and pharmaceutical aid). CHAPTER X. — workmen's INSURANCE IN SPAIN. 2357 The following table shows the years when various classes of funds were organized: NUMBER OF WORKMEN'S SOCIETIES IN 1904, BY YEARS WHEN ORGANIZED \XD OBJECTS OF SOCIETIES. [Source: InsUtuto de Reformas Sociales. Estadfstica de la Asociacion Obrera, en lo de noNienibre de 1904, pp. 285 and 28(>.) Number of societies whose object is— Year organized. Catholic. Improve- ment of labor con- ditions. Coopera- tive. Mutual benefit. PoUtical. Educa- tion and recrea- tion. Musical, etc. Total. Before 1800 ISOltolSSO 1 1 1 6 5 39 6 13 8 11 10 6 26 19 80 198 129 167 224 194 5 1 3 2 4 13 34 5 9 1 7 4 10 9 6 12 18 32 46 40 51 2 a 1851 to 1860 1861 to 1870 2' 5 15 1 2 2 4 14 i 1 5 3 11 s « 1871 to 1880 an 1881 to 1890 6 33 1891 1 QA<> 123 19 i8y^ 1893 2 2 4 2 1 2 1 1 2 21 13 29 1894 1895 5 3 1 2 6 9 12 12 32 S 1 1 5 1 2 3 3 2 18 14 1 2 7 2 189G 3' 6 3 1 4 5 8 12 34 26 1897 29 1S98 2 1 4 5 3 8 9 2 49 1899 1 2 4 .! 11 10 33 1900 100 1901 237 1902 191 1903 252 1904 325 Not reported 344 10 Total G7 1 1JO 93 309 79 &I 86 1.SC7 That this form of insurance or mutual aid is quite popular among all classes of Spanish society is shown by another statistical report published by the Institute of Social Reforms— a report on all asso- ciations for savings, cooperation, and mutual aid. Of 2,020 societies, mth 437,347 members, 1,696 societies, with a membersliip of 358,014 (i. e., 84 per cent of the societies and about 82 per cent of the mem- bership), had mutual help primarily in case of sickness as their main object. On the basis of these figures, and considering the societies omitted from the enumeration in 1904 and those societies organized witliin recent years, the assistant secretary of the Institute of Social Reforms estimates the number of existing mutual aid societies in 1908 at about 800, with a membership of 150,000; and, including the families, that 750,000 persons were protected by sickness insurance. i f 2358 REPORT OF THE COMMISSIONER OF LABOR. NUMBER, MEMBERSHIP, AND MEMBERSHIP PER 1,000 POPULATION, OF WORKMEN'S MUTUAL AID SOCIETIES IN 1904, BY PROVINCES. [Source: Institute de Reformas Sociales. Estadlstlca de U Associaci6n Obrera, 1907.) Pro\ince. Alicante Badajoz Barcelona Cadiz Canaries Castellon de la Plana. Corunna Cuenca Gerona ompuzcoa Huelva Logrono Madrid (a) Malaga Murcia Oviedo Palencia SeviUe Tarragona Toledo VaUadolid.... All other provinces. Total. Population (census of 1900). 1, 9, 470, 149 520,246 054,541 452, 659 358.564 310,828 653,5.56 249,696 299,287 195.850 260,880 189.376 775,034 511,989 577,987 627,069 192,473 555, 256 337,964 376, 814 278,561 358, 895 Number of socie- ties. 16 10 38 3 4 13 3 8 30 5 12 6 18 2 9 7 13 13 10 7 8 85 18,607,674 310 Memlier- ship. 12,304 1,H34 7, 2- orated by a special commission, consisting of representatives of the State, the Institute of Social Reforms, the important savings banks, and other similar institutions; that cooperation between the central governmental institutions and the existing private charitable savings CHAPTER X. — workmen's INSURANCE IN SPAIN. 2361 or loan institutions should be encouraged; that the local institutions should be intrusted with local representation of the pension insurance fund; that the local institutions should also be encouraged to con- tribute to the central fund a definite proportion of their profits, which would go to increase the pensions ; that the capital of the fund should consist of a state subsidy, the premiums of the insured, and such other contributions as the Provinces or localities might make ; that the insur- ance should be free from all taxation, similarly to the existing savings banks and mutual accident insurance companies; and that the old- age pensions should not be subject to assignment or attachment. To carry these general principles into effect a special commission of the Institute of Social Reforms prepared the draft of a bill for the establishment of the national insurance institute. This bill was laid before the Institute of Social Reforms on May 25, 1905, and, with a few minor changes, was unanimously approved and transmitted to the Cortes on November 2, 1905. The aim, organization, and methods of the institute were briefly summarized in the report of the special committee which accompanied the draft of the bill. The duty of the institute was stated to be, not only the management of a particular fund but also the stimulation of the popular interest in savings, insurance, and especially in old- age insurance, as well as in the encouragement of other local institu- tions of the same type. It was expressly recommended that the insti- tute strictly adhere to the technical conditions of insurance. It was also suggested that the institute should be national in its scope, as the insurance theory and statistics are true only when apphed to large numbers, and the larger the number of insured the less will be the friction in the application of theoretical calculations to actual practice. However, it is not the aim of the new institute to destroy or to compete with those pension insurance institutions which exist in Spain at the time of the organization of the National Institute for Old-Age Insurance. The purpose is not to establish a monopolistic institution but a model one. Therefore, cooperation between the national institute and the local institutions, such as the funds of Guipuzcoa and Barcelona, would be permitted, provided the local funds were also organized with strict adherence to insurance principles. This cooperation would take the form of coinsurance or reassur- ance. In the distribution of state subventions the local funds would be permitted to participate. In this way it was thought that the organization of the national institute, in order to engage the power of the Central Government in the movement to stimulate old-age insurance, would not interfere with any private efforts that might be made in the same direction, and that private old-age insurance might grow even faster under the stimulus of the example set by the national institute. Financially the plan deviated from the wish 2362 REPORT OF THE COMMISSIONER, OF LABOR. which carried the majority of votes in the conference, that the State assume the entire guarantee and financial responsibihty of the institute. This was termed an ''excessive oflB.cial intrusion/' and an autonomous institute was recommended. But in place of a continu- ous guarantee the State was expected to furnish the capital necessary for the organization and in addition to furnish annual subsidies, which would serve as a source of subventions to the pensions and also to cover the cost of administration. In the administration the autonomous principle is combined with that of state control, the power of appointment of the governing council being divided between the Ministry of Interior and the Institute of Social Reforms. After a delay of over two years the bill was passed by the Cortes without discussion and without any changes, and approved by tlie Crown on February 27, 1908. The law estabUshing the National Institute for Old-Age Insurance, as passed and approved on February 27, 1908, stipulated that the minister of interior should immediately appoint a commission, in conformance with the rules for the governing council, to prepare the statutes, regulations, and tariffs, and that efforts should be made to make the organization of the office feasible within one year from the date of the promulgation of the law. In conformity with these demands of the law a commission was appointed on March 8, 1908, with the chairman of the Congress of Deputies as presiding officer, and the commission held its first meeting for organization on May 11, 1908. The constitution of the national institute, prepared by that com- mission, was approved by the royal decree of December 24, 1908. Notwithstanding this lengthy document of some 125 articles, the details of the operation of the institute were not yet determined, these depending upon the regulations (reglamento) and the tariffs to be prepared by the supervisory council of that institute. The constitution took effect on January 1, 1909. PROVISIONS OF THE LAW OF FEBRUARY 27, 1908. General Purpose and Scope. — The general purposes of the insti- tute are stated broadly as follows: (1) To inculcate among the masses habits of provision for old age, especially in the form of old-age pensions; (2) to administer the mutual insurance of those who may voluntarily associate themselves for that purpose under the condi- tions most favorable to them, and (3) to stimulate and encourage the purchase of old-age pensions by procuring subsidies from pubhc or private sources. Practically, however, the operations of the institute consist mainly in selhng old-age pensions or deferred annui- ties to individuals of the working classes, either for ^'single time pay- CHAPTER X. workmen's insurance in SPAIN. 2363 ments,'' as explained below, or for reimrrent premiums, to be paid for either by the beneficiaries or by other persons for the beneficiaries. Persons Insured.— The insurance is intended exclusively for the working classes, including those employed by the State. A salaried employee or an officeholder may be insured in the institute, if his salary does not exceed 3,000 pesetas ($579) per annum and he has no right to a pension under other existing legislation. For- eigners of the male sex and of age, residing in Spain, may take out such pension insurance, provided they agree to abide by the decisions of the Spanish courts. Minors and married women may purchase •insurance with reserved capital without anyone's authorization, while minors under 18 years of age require the authorization of the parent or guardian, and married women require the authorization of the husband for purchase of the old-age pension with alienated capital. Forms of Insurance.— Similarly to the French, Belgian, and Italian systems, after which the Spanish institute is modeled, both forms of annuity insurance— those with alienated and those with reserved capital— may be written. In the former case no repayments are made at death of the insured, whether it occura before or after reaching the pension age; in the latter case the entire capital, or the greater portion of it, is returned at death to the heirs. Pensions.— The system of insurance being entirely voluntary, no definite pension is guaranteed. The amount of the pension insured, as well as the fact of insurance, is left entirely to the insured. The amount of the pension acquired is made dependable upon the free contributions of the insured or for the insured by other persons. The only limitation is that no premiums shall be received which would bring the amount of the pension acquired over 1,500 pesetas ($289.50) to the same person. The pensions purchaseable for given premiums will naturally . differ for the two methods of insurance described above— that with alienated capital and that with reserved capital. In accordance with the usual Ufe insurance practice, various pro- visions are made for changes in the plan of insurance. In case of the insurance of an old-age pension with reserved capital the insured may demand the paid-up value of the reserved capital at any time before the old-age pension begins, or, before his old-age pension ma- tures, he may use the value of this reserved capital for the purchase of a temporary annuity. In the case of insurance with reserved capital the distribution of the capital among the relatives at the death of the insured does not depend upon the will of the deceased, but is regulated by law accord- ing to the degree of consanguinity, as follows: The widow, the chil- dren, and the parents have the preference, and only in the absence 2364 BEPORT OF THE COMMISSIONER OF LABOR. Er of all such relatives does the capital go to other heirs. Wlien the deceased leaves a family the capital is divided equally between the widow and the children, the widow receiving one-half and the children the other. If there are no children, the widow receives thn^e-fifths and the parents the remainder. The amounts due to the heij-s designated shall not be subject to any claims of other heirs or of creditors. Invalidity. — The institute's activity does not contemplate special invalidity pensions. The constitution j)rovides, however, that in case of absolute disability due to an incfustrial accident the insured person has the right to demand the conversion of his deferred annuity into one to begin immediately, provided it will amount to at least 60 pesetas ($11.58) per annum. If not, the conversion nmst be delayed until the pension has reached that value. The pensions are not subject to cession or seizure. Sources of Kevenue. — The sources of revenue are as follows: (1) Endowment of not less 500,000 pesetas ($96,500) presented by the State. (2) The premiums of the insured. (3) Interest and revenues of social funds. (4) An annual subsidy from the state budget, proportionate to the needs and the development of the institute, but not less than 125,000 pesetas ($24,125) per annum. (5) Other donations or legacies from public or private bodies or individuals. The main sources of revenue for payment of the pensions is derived from the premiums to be paid by the insured. The rates of insurance are not stated in the law. The general principle is laid down that the technical demands of the insurance theory must be strictly complied with. The governing council, with the assistance of a professional insurance accountant, is required to elaborate these rates in accordance with tliis principle, on the basis of the best mortahty tables used by Hfe insurance companies until a national mortality table may be obtained. An assumed rate of interest not to exceed 3 J per cent and a loading necessary to form a special reserve sufficient to meet the effects of fluctuations in mortahty and in the interest rate must be charged in the premium tables. In the constitution the French mortahty table of 1902 (Rentiers Francais, usually designated as R. F.) is specificaUy selected. The difference between the '^one-time payment'^ and the '^recurrent payment'' plan is an actuarial difference, necessitating different pre- mium tables. The ''one-time payment" system leaves the amount of payments entirely to the insured, but assigns a definite pension value to each payment made, the actual pension to consist eventually chapter X. workmen's insurance in SPAIN. 2365 of the total amount of pensions acquired. The pension value of each payment is determined from tables prepared in accordance with the general requirements outlined above and depends upon the age of the insured and the age at which the pension is payable. In the recurrent premium pla^ the premiums are computed at an annual rate, but payments at slightly increased rates may be made semi- annually, quarterly, monthly, or even weekly. Premiums which exceed 60 pesetas ($11.58) annually must be paid monthly. The voluntary character of the insurance is the essential feature of the system, and the employers are not required to make any contri- butions to the fund, but the necessity of some form of material sub- sidy as an encouragement to individual thrift was recognized in the law. Accordingly the law provided for an initial capital of at least 500,000 pesetas ($96,500) to be contributed by the state treasury, as well as annual appropriations to cover the cost of administration and also for subsidizing the individual accounts. These subsidies are to be distributed among the persons insured in the institution (including the business of reinsurance and coinsurance) with the following Hmita- tion: The subsidies are to be distributed only among such persons as have made some payments during the preceding year. The constitution of the institute further excludes persons receiving pensions from government or private sources, or who are assisted in the payment of their premiums by the State, Province, or municipali- ties, or who are in a favorable economic condition as evidenced by payment of direct taxes above a certain limit to be decided upon in the regulations. All such members who are Spanish citizens living in Spain and over 18 years of age are entitled to participate. There are some limita- tions upon the right of foreigners living in Spain to share in the sub- sidy. In order to obtain it, they must have lived ten years in Spain and must be citizens of a country which grants similar privileges to Spanish citizens. This latter qualification is waived in case of Portuguese subjects of Spanish-American countries. It may also be modified by diplomatic action. The constitution of the institute further provides that the council elaborate rules for distribution of the subsidies to insured persons who have chosen the age of 55, 60, and 65 for maturity of pensions. The amount of subsidy thus granted must be converted into addi- tional pensions in accordance with the conditions and rates at the time of payment, or it may be converted into a temporary annuity to run until the maturity of the contracted pension. No subsidy to anyone insured shall exceed 12 pesetas ($2.32) per annum during the first ten years of the existence of the institute. Preference should also be given to individuals whose insurance amounts to a pension of less than 365 pesetas ($70.45) per annum, as against those whose pen- 2366 EEPORT OP THE COMMISSIONEE OF LABOR. sions might be increased by the subsidy to an amount exceeding that sum. Special subsidies should also be gianted to those who because of advanced age at the time when the law goes into effect are obliged to contract pensions for a higher rate and shorter time. Also special subsidy funds granted for the benefit of individuals, or groups of indi- viduals, must be distributed in accordance with the conditions of the grant and the special rules of the institute pertaining thereto. The methods of determining annually the actual amounts of benefits, subject to the above regulations, are described below in connection with the financial organization of the institute. The conditions qualifying the insured persons to participate in the special or preferential subsidy are stated in detail in the constitution of the institute. A person possessing any of the following qualifica- tions is entitled to receive this preferential subsidy: (1) If the pension will not reach 365 pesetas ($70.45), as deter- mined by the assumption that the average payments for the three years preceding would be continued until the pension matures. (2) If the person contracts to pay a higher premium for a pension to mature at a shortened period because of advanced age at the time of taking insurance. This applies to persons 45 years of age and over and only for the first fifteen years of the operation of the law. (3) If the person contracting for an old-age pension with reserved capital assigns half of the reserved capital to his heirs. (4) If the insured person also insures two children in the institute. (5) If the insured person is included in a plan of collective insur- ance which satisfies the preceding condition. (6) If the insured person depends upon an immediate pension because of absolute disability to work. (7) If the insured person has for three years annually paid in under the plan of one time payments amounts sufficient to produce pensions equal to or greater than that purchased during the first year. Only one preferential subsidy shall be given to those combining several of the qualifications enumerated above, except that an extra subsidy may be given for the disability qualification. The preferential subsidies paid in virtuo of qualifications 1, 3, 6, and 7 shall be discontinued when the qualifications ceases, and in case of the first qualification (concerning the value of the pension being below 365 pesetas, $70.45) when the pension later exceeds that limit, not only do the subsequent preferential subsidies cease, but the earlier ones are deducted. Financial Organization. — The revenues and property of the institute shall for no reason be used for any other purpose than the payment of pensions or annuities to the insured and for the expenses of administration. Moreover the law i)rotects the contributions of the insured against the danger of being made to carry excessive chapter X. workmen's INSURANCE IN SPAIN. 2367 charges for expenses of administration by strictly defining the sources of revenue which may be used by the institute for such expenses- These sources are as follows : 1. Subsidy which is granted by the State for this purpose. 2. Interest on the endowment. 3. Any other donation intended for that purpose. 4. A special loading of the premiums, which must not exceed 3 per cent and must not be used to cover operations of a date preceding the establishment of this loading. The financial organization of the institute demands the existence of a mathematical reserve to cover obligations toward the insured and of a special reserve as mentioned above. After the mathematical reserve and the special reserve have been formed, all surplus funds from each year's operations must be turned into the subsidy fund. The part of the annual appropriations from the State which is not used for expenses forms the foundation of the subsidy fund. To this all the above-mentioned surplus funds are added. The subsidy fund is divided annually, in accordance with certain regulations, among all members entitled to it. The institution pub- lishes annually detailed balance sheets of income and expenditures and every five years it publishes a technical balance sheet showing the actual value of annuities purchased and of property and securities representing the mathematical reserve. In the computation of the mathematical reserve the same table of mortality and rate of interest must be utilized as in computing the premiums of the insured. Administration.— The organization of the institute is planned to combine its formal independence with reasonable governmental con- trol. It has independent legal existence, its own system of adminis- tration, and the power to purchase, sell, and hold property, make debts, etc. The funds of the institute are ent irely separate from those of the state treasury, and the State does not assume any responsibility beyond that of control as provided for by law. The general super- vision rests with a governing council (consejo de patronato)^ which must elaborate the constitution and regulations (subject to the approval of the minister of interior), prepare the rates, and control the actions of the executive committee. The council consists of the presiding officer and fourteen members, to be appointed by royal decree upon nomination by the Mmistry of Interior; the presiding officer and one- half of the members of the council are to be selected by this ministry directly, and the other half are nominated upon recommendation of the Institute of Social Reforms. In order to have the interests of both employers and employees represented in the insurance institute it is required that the seven nominees of the Institute of Social Reforms shall include one labor delegate and one employers' dele- 2368 REPORT OF THE COMMISSIONER OF LABOR. gate from the institute. Vacancies in the council are to be filled upon the nomination of the council itself, except that the chairman is always chosen directly by the minister of interior. The council elects an executive conmiittee (junta de gobiemo) of five members. The headquarters, the main depository office, and the treasury of the institute, during the first ten years of its existence, at least, must be connected either with the Madrid Savings Bank or with some other national credit institution which may offer preferable conditions. It may establish agencies in Provinces and special localities, and even in foreign countries, if desirable for the convenience of the Spanish resi- dents. The institute must make an effort to establish these branches in connection with the local savings banks or similar institutions for old-age pensions j it being required, however, that these institutions keep the insurance business entirely separate from their other func- tions. Relations between the Institute and Other Old-Age Insur- ance Funds. — The national institute and all other charitable insti- tutions which undertake to grant old-age pensions will have their relations made closer. First, they may insure old-age pensions for their entire membership, and for such collective insurance special facilities will be offered; second, they may reinsure a part of their operations, or, third, establish a coinsurance agreement. The busi- ness of reinsurance and coinsurance must share in the benefits of the subsidy fund of the national institute. Similar relations may be established with foreign institutions of a like nature. Government Control. — For the purpose of controlling the busi- ness of the institute the Government is empowered to examine, by means of a commission of three experts, into the business manage- ment and solvency of the institute during each quinquennial period, into the mathematically calculated reserve, and into the property and investments of the institute. Several special privileges which may be considered as substantial subsidies are conferred upon the institute by reducing the cost of administration. In litigation the cost must be remitted as that of a charitable institution; its mail is granted the reduced rates of postage as for printed matter, and for telegraphic business it is to be charged half rates. It is exempted from all income, industiial, land, insurance, stamp, or court taxes. The certificates which tlie institute requires from the members or their heirs are also exempt from stamp taxes. Extension of the Regulations to Private Old-Age Insur- ance Institutions. — ^The law provides that the regulations con- tained in Chapter III of the law, and which refer mainly to conditioris of membership, repayment of reserved capital, and special privileges, chapter X. workmen's insurance in SPAIN. 2369 may be extended to private funds of old-age insurance of workmen which accept the actuarial regulations established by the law for the national institute. Subsidlary Functions of the Institute.— While the main func- tion of the institute is that of insuring workmen against old age by means of old-age pensions, mention must be made briefly of the other functions prescribed for the institute by law in general terms and more specifically by its constitution. These consist in fostering and encouraging all methods of social providence, as old-age pensions, savings, etc., not only by managing the old-age insurance system, but by educational work as well. According to the constitution, this educational work is to include methods Hke the following: The publication of a periodical devoted to this problem (under the title of Anales del Instituto Nacional de Prevision); the pubUcation of special monographs on the various forms of social providence; the formation of a reference and a circu- lating Hbrary devoted specially to insurance and savings; the organi- zation of public and private conferences, especially in workmen's organizations and in societies for the study of social problems; the training of organizers and advocates of popular providence and sav- ings; the prize competition for private individuals and organizations working in that field; the efforts to bring about cooperation between local savings institutions; the constant communication with similar national and foreign institutions and with the Institute of Social Reforms; the arbitration of disputes in matters concerning the institution for social providence, provided such disputes have been submitted to the institute; the preparation of model regulations and tariffs for mutual benefit societies; the study of sanitary and hygienic measures which are of help and importance to popular insurance; collaboration with Spanish and international congresses, relating to the work of the institute, and the efforts to initiate such congresses; supplying information to the Government, when requested, and to other authorities concerning questions of insurance, savings, and other means of social providence. PRIVATE VOLUNTARY OLD-AGE INSURANCE. While estabhshing the national institute the Spanish Government does not undertake to monopoUze the function of insuring workmen against old age. On the contrary, it undertakes to encourage private institutions which pursue the same objects, by granting them all the legal privileges and tax exemptions which the national institute possesses, provided they comply with certain conditions. The Government does not, however, grant them a direct subsidy. The provision to that effect is contained in the law of February 28, 1908, and regulations concerning institutions analogous to 2370 BEPORT OF THE COMMISSIONEE OF LABOE. the national institute were promulgated by decree of December 10, 1908.(«) Societies which may be declared analogous to the national institute and granted those privileges include workmen's old-age pension funds, established independently or as parts of mutual benefit societies or similar organizations, provided they comply with the following conditions: (1) That they are classified by the Ministry of Interior as beneficent institutions. (2) That they pursue aims similar to those of the national institute, including the efforts to spread habits of old-age provision by various combinations of savings and insurance. (3) That the old-age pension funds do not grant pensions exceeding the maximum established for the national institute by 50 per cent; that they are not combined with institutions for savings, which would permit the accumulation of capital giving an annual income greater than the maximum, 1,500 pesetas ($289.50). (4) That in computing their premium rates these old-age pension funds use either the French mortaUty table (R. F., Rentiers Francais), that of Deparcieux (G. R., Caisses Retraites), that of the Spanish Geographic and Statistical Institute, that of the London Institute of Actuaries, or any other permitted by the national institute, with a rate of interest of 3 or 3 J per cent and a surcharge not exceeding 2 per cent. (5) That they establish a mathematical reserve according to the regulations prescribed by the national institute. As long as this mathematical reserve does not exceed 25,000 pesetas ($4,825), a special reserve of 20,000 pesetas ($3,860) must be kept, wliich may be reduced to one-half or one-fourth, if 50 per cent or 75 per cent of the pensions insured are reinsured in the national institute. (6) That they utilize the surplus of each year to the common benefit of the insured, either reinforcing the special reserve or by adding sub- sidies to the pension accounts or for any other similar purpose. (7) That if the institute pursues many different aims, the accounts of the old-age pension should be kept strictly separated from the others. Societies which comply with such demands enjoy all privileges enumerated above (page 2368), except that the privilege of freedom from cession or seizure apply to the pensions only up to the limit of 1,500 pesetas ($289.50). For the purpose of recognizing such private institutions, or denying the application in case of absence of any of the conditions enumerated, the Ministry of Interior must advise with the superior commission of charities {Junta Superior de BeneHcienda), the National Institute o Boletln del Institute de Reformas Sociales, No. LIV, December, 1908, p. 608. CHAPTER X. — workmen's INSURANCE IN SPAIN. 2371 for Old-Age Insurance, and in case of refusal also with the Institute of Social Reforms, upon the demand of the institution concerned. Briefly, these regulations provide for guaranties that these soci- eties are charitable or cooperative institutions not pursuing any aims of profit or gain; that they provide only for workmen or persons of moderate aims; that they conduct their insurance business in con- formance with actuarial science, and that they are properiy pro- tected with necessary reserves. The regulations therefore are analogous with the laws for recognition of mutual benefit societies, which exist in Italy, France, Belgium, and Scandinavian countries. In conformity with the law and the regulations, the following two mstitutions were, on May 8, 1909, recognized by royal decrees :(«) (1) The Barcelona Old-Age Pensions and Savings Fund (La Caja de Permones para la Vejez e de Ahorros de Barcelona), and (2) The Leon Loan Office and Savings Fund (La Monte de Piedad y Caja de Alwrros de Leon), The Barcelona fund, as explained in the royal decree conferring the privileges upon it, was recognized as a beneficent institution on November 22, 1905. Its aims are to facilitate savings, help form deferred and immediate pensions or deferred capitals; the highest pension permitted is 2,250 pesetas ($434.25) ; the savmgs bank does not grant any interest to accounts exceeding 5,000 pesetas (1965), and does not insure for accumulated capitals, the interest upon which, at 5 per cent, would exceed 1,500 pesetas ($289.50). The table of mortality used is Ren- tiers Francais, the interest rate assumed is 3i per cent; the mathe- matical reserve amounted to 29,743.48 pesetas ($5,740.49), and was sufficient to cover the obligations, and in every respect this institu- tion complied with the demands of the royal decree of December 10 .1908. The Leon institution is not an old-age pension fund; but one of its functions is that of a savings bank; it is destined for the use princi- pally of workmen or other persons of moderate means. It was recognized as a beneficent institution on May 13, 1908, by a resolu- tion passed on February 26, 1909, probably to comply with the requirements for recognition. This bank established a special form of savings accounts, the interest to be apphed to the purchase of an old-age pension for the owner of the account; the hmit for such an account is 10,000 pesetas ($1,930), while for the ordinary interest- drawing account no interest is paid after 5,000 pesetas ($965^ have been deposited. This institution was held to comply with the requirements of the decree of December 10, 1908. A few data are available concerning two' private old-age msurance funds, the one in Guipuzcoa and the above-mentioned fund in Bar- « Boletln del Institute de Reformat Sociales, No. LX, June, 1909, pp. 1298 and 1300. 2372 KEPORT OF THE COMMISSIONER OF LABOR. |! It celona, and these data are mainly significant as indicating the lim- ited operations of these funds. The Old- Age Retiring and Pension Fund {La Caja de Retiros para la vejez y los invalidos del trabajo) in San Sebastian, Ouipuzcoa, was established in 1900, through private benevolence, in connection with the local savings bank. The Old-Age Pension Fund {La Caja de Pensiones para la Vejez), of Barcelona, was established more recently, in July, 1905, and is managed by a recognized Spanish authority on insurance. The experience of these two old-age and invalidity j)en- sion funds is instructive. The organization of both funds, while dif- fering in detail, is based upon the Belgian system. Every payment is a premium for an annual pension to mature at 50, 55, 60, or 65 years of age. In case of invalidity the pension is granted in full which, according to payments made, would have becm due at ma- turity. The maximum pension to be granted in the Guipuzcoa fund is 1,200 pesetas ($231.60), and that in the Barcelona fund 1,800 pesetas ($347.40). Insurance is granted according to the plan of both "alienated" capital and "reserved'' capital. In the first case the pension stops with death, while in the latter case 90 per cent of the premium payments are returned to the family whether death occurs before or after the pension age. The choice between various methods of capitalizing the accrued pensions is also given. The operations of the Guipuzcoa fund are unimportant. In 1905 the whole number insured was 357. The total amount deposited during the year was 5,583 pesetas ($6,077.52), and the total capital was 44,435 pesetas ($8,575.96). The Barcelona fund began business on July 1, 1905, with 223 accounts, amounting to 64,048 pesetas ($12,361.26). By October 31, 1907, that is, within twenty-eight months, the total deposits reached the sum of 2,270,599 pesetas ($438,225.61), as against the total with- drawals of 918,459 pesetas ($177,262.59). This apj)ears to show a demand for old-age insurance among the wage-working populations of the large Spanish cities. RAILROAD EMPLOYEES' FUND. The most important old-age pension fund is the General Union of the Employees of the Spanish Railroads, established in 1888, which had 18,307 members on December 31, 1906. Its aims are: (1) To furnish pensions to members in case of invalidity and to their families in case of death; (2) to help members with loans; and (3) to defend their rights and interests. The pension fund is the most important feature of the organization. The income of the fund is derived mainly from monthly contributions of the members, equal to 3 per cent of their salary or wages. Ninety per cent of the income CHAPTEE X. workmen's INSURANCE IN SPAIN. 2373 from this source goes to the pension fund, 5 per cent to the loan fund, and 5 per cent to expenses of administration. The pensions are granted (1) m case of mvalidity, if the disabled employee has no other source of income ; (2) in case of superannuation, at the age of 55 after at least 25 years of service, or at the age of 60 after 20 years of service, provided the member gives up his employ- ment in the railroad service; and finally a pension to the member's family in case of death, in the following order: To the widow, the children, or to the parents. The pension fund of the association on December 31, 1905, amounted to 3,162,411 pesetas ($610,345.32), and the loan fund 153,128 pesetas ($29,553.71), giving a total on hand of 3,315,539 pesetas ($639,899.03). The total income in 1906 was 849,925 pesetas ($164,035.53). Of this amount, the monthly contributions of the members equalled 668,984 pesetas ($129,113.91), and the interest on investments 140,023 pesetas ($27,024.44), leaving 40,918 pesetas ($7,897.18) from all other sources of income. The amount paid out in pensions was 391,673 pesetas ($75,592.89), in other subsidies 15,918 pesetas ($3,072.17), and the cost of administration was 32,316 pesetas ($6,236.99), giving a total expenditure of 439,907 pesetas ($84,902.05). The cost of administration constituted 7.3 per cent of the total expenses and only 3.8 per cent of the total receipts. The excess of the receipts over expenditures was 410,018 pesetas ($79,133.47), bringing the assets on December 31, 1906, up to 3,725,557 pesetas ($719,032.50). The number of pensions granted in 1907 was 172 (or 9.4 per 1,000), and the amount of these pensions 77,671 pesetas ($14,990.50), bemg an average of 452 pesetas ($87.24) per pension. The total number of pensioners carried on the rolls on December 31, 1906, was 931, and the total sum of pensions paid out during 19 years of its existence, 1,972,065 pesetas ($380,608.55). («) LIFE INSURANCE IN CONNECTION WITH WORKMEN»S DWELLINGS. Some months before the National Institute for Old-Age Insurance was established by the Government an additional function was sug- gested for it by the Institute of Social Reforms. This was in con- nection with measures planned for the improvement of the housing conditions of , wage-earners. For several years the Institute of Social Reforms had under con- sideration a legislative proposal for government encouragement of improved housing conditions. Early in 1907 an exhaustive mono- graph was published on the subject, containing suggestions for such a law based upon a careful study of the conditions and existing legislation throughout Europe. The draft of a bill based upon these suggestions was presented to the institute by a special committee, in « Arbeiterversicherung in Spainen, Dr. Zacher, pt. xva, p. 29. 2374 REPOBT OF THE COMMISSIONEE OF LABOR. CHAPTER X. WORKMEN S INSURANCE IN SPAIN. 2375 June, 1907, that is, about eight months before the national institute was established. The bill proposes the establishment of local housing commissions, confers many privileges and subsidies upon workmen who make efforts to acquire homes and upon associations organized for the purpose of buildmg workmen's homes, establishes funds for extending loans for such purposes, etc. The draft of the bill was fonnally approved by the Institute of Social Reforms on April 27, 1908, and referred to the Government. That proposals of the Institute of Social Reforms have considerable weight with the Cortes is shown by the fact that the bill establish- ing the National Institute for Old-Age Insurance was adopted as presented. It is not necessary to present a detailed analysis of the entire bill relatmg to workmen's dwellings. The thu-d chapter is devoted to a plan for combining life msurance with the purchase of cheap dwellmgs by workmen or other people of small means. The general purpose of the plan is to insure the payment of the debt contracted for the pur- pose of building or purchasing cheap dwellings, thus removmg the mam objection a man of moderate means might have to an under- taking of this kind, lest his unexpected death make it impossible for his family to meet the obligations- This branch of insurance is to be mtrusted to the national institute. For this purpose a section of popular life insurance is to be established in the institute. The form of insurance is to be the same as that known in the United States as the endowment plan and for the total amount of the debt contracted, the pohcy to mature at the same time that the debt matures or at the death of the insured. While being an integral part of the administrative organization of the national institute, this section is to be kept separate as far as Its functions and accounts are concerned. It is to have its own initial capital, to be appropriated by the State, which should amount to at least 500,000 pesetas ($96,500), of which 200,000 pesetas ($38,600) may be invested in loans upon cheap dwellings at 3^ per cent. The part of the assets equal to the mathematical reserve is to be kept intact and administered by the national inst itute. The limit of the insurance is to be the value of the building or 5,000 pesetas ($965). A medical examination of the Applicant 'for msurance is to be required, for which government physicians are to be appointed. In case of an abnormal state of health which is not grave enough to cause the rejection of the ai»pUcant, a modified pohcy may be granted with medical reexaminations at definite periods, the value of the pohcy in case of death being very low during the first penod and gradually increasing according to certain tables. The premiums are to be paid in monthly installments, with a reduc- tion of 3 per cent in case of annual payments. If the payments of the 1/ premiums are interrupted, the insured is to be given a reduced pohcy according to the paid-up premium, to mature at the same time as the policy originally contracted, but in exceptional cases the pohcy may be redeemed in cash. A policy may be renewed within eight months by the payment of delinquent premiums and interest charges computed at 3 per cent. A medical reexamination is to be required. The insured is to receive dividends, which may be used either for reducing the premiums or for increasing the capital value of the policy. The original amount of the policy can not be attached or used for any other purpose than to pay the claim of the institution granting the loan upon the property. It is possible to transfer life insurance into pension insurance, or vice versa. If the premium is. more than is necessary for the purposes of the insurance (i. e., the payment of the loan), the excess is transferred to the pension-insurance section of the institute and credited to the insured. According to the latest information this feature of the proposed law was postponed. On July 16, 1910, the bill was introduced in the •Cortes, but the provisions concerning the insurance feature were ehm- inated, the chapter relating to combining life insurance with the purchase of cheap dwellings being reduced to the statement that this matter will be treated in the special law concerning popular life insurance, to be introduced by the Government. It is explained in the preamble to the bill that it is intended to extend the operations of the National Institute for Old-Age Insurance to include such pop- ular Hfe insurance, and the matter of insurance in case of purchase of a dwelling will naturally form a part of that law. BIBLIOGRAPHY. Boletfn del Institute de Reformas Sociales, anos I-V. InBtituto de Reformas Sociales. Madrid, 1904-1908. Conferencia sobre pre\d8i6n popular celebrada en los dfas 19 y 20 de Octubre de 1904. Institute de Reformas Sociales. Madrid, 1905. Estadlstica de la asociacidn obrera en Espaila en 1° de Noviembre de 1904. Institute de Reformas Sociales. Madrid, 1907. Estadfstica de las instituciones de ahorro, cooperacidn y preAisicn en 1° de Noviembre de 1904. Institute de Reformas Sociales. Madrid, 1908. Estadfstica de los accidentes del trabajo ocurridoe en el ano 1904; en los anos 1904 y 1905; en el aiio 1906; en el ano 1907. Institute de Reformas Sociales. Madrid, 1905, 1906, 1907, 1908. Institute nacional de previsidn y bus relaciones con las entidades similares. Insti- tute de Reformas Sociales. Madrid, 1906. Legislacion del trabajo. Ap^ndice primero, Julio, 1905; Junio, 1906. Institute de Reformas Sociales. Madrid, 1906. Legislacion del trabajo. Ap^ndice segundo, Julio, 1906; Junio, 1907. Instituto de Reformas Sociales. Madrid, 1907. Legislacion del trabajo. Institute de Reformas Sociales. Madrid, 1905. 67725°— VOL 2—11 56 2376 BEPORT OF THE COMMISSIONER OF LABOR. ill Maluguer y Salvador, Don Jos^; Cajaa nacionalee de seguro popiiliu-. Instituto de Reformas Sociales. Infonnacion legislativa. Madrid, 1904. Nufiez, Alvaro Lopez. Les Assurances Socialea en Eapagne. Congr^s International dea Assurances Sociales. Rome, 1908. Preparacion de las bases para un proyecto de ley de accidentes del trabajo en la agri- cultura. Instituto de Reformas Sociales. Madrid, 1908. Preparacion de las bases para un proyecto de ley de casas para obrero«. Ca«as baratas. Instituto de Reformas Sociales. Madrid, 1907. Preparacion de la reforma de la ley de accidentes del trabajo de 30 de Enero de 1900. Informe de la secci6n primera t^cnico-administrativa. Instituto de Reformas Sociales. Madrid, 1905. Proyecto de reforma de la ley de accidentes del trabajo de 30 de Enero de 1900. Insti- tuto de Reformas Sociales. Madrid, 1908. Tusquets, Francisco Aumatell. Los accidentes del trabajo. Barcelona, 1903. Zacher, Dr. : Die Arbeiter-Versicherung im Auslaude. Heft XV, X Va Berlin 1901 1908. VITA I. M. Riibmow was born on April 19, 187,-), in tlu- Province ot (liodno, Russia. In 1883 he niovod with his parents to Moscow wheic ho remained until 1892, receiving his secon.larv education in the (.lassical Department (dymnasialabteilung) oi' a (ierman school, Petri-Pauli-Schule. He arrived in America in February, 1893, and entered the jnnior class of Columbia University in the fall of the sanie vear graduating in 1895 as A. B. He was appointed UniveVsitv Scholar m Biology for 1895-1906, and studied Biologv, Phvsiologv and kindred subjects under Professors Henrv" F 'osborn Edmund Wilson, Frederick S. Lee and others." In 1898 he graduated from the New York Universitv of Medicine with the degree ot M. D., and remained in medical practice until 19(»3 Mean^^'l,ile in 190() he entered the School of Political Science of Columbia University, and studied there until 1903, taking courses in Economics, Statistics, Sociology and Political Philosopbv under Professors K.lwin R. A. Seligman, Franklin H. (ii i r, . and 24t.^ 1903. (Hep. •Zr'n,^::::^.^:;::^ Vo7r '"' '''' 25th, 1903. "* Medicne. Amer. Hebrew. Sept. 7. Labor Insurance. Joiirn. Pol. Econ., June, 1904 8. Compulsory State Insuranro of \\v...b' Sept., 1904. ' ^"^"'ancc of Workingmen. Ann. Amer. Acad.. 9. Compulsory Insurance. The Chautaiu^uan, March 1905 10. Economic and Industrial Conditions of thp mV' '. New York. (A chanter in th,. -p f ^ Kussian Jew in hv rh Q D ^^/-"aptei in the Russian Jews in the United Stato^ " oy Ch. S. Bernheimer, Philadelohia ion-; i i ^ \';"*^« Elates, 11. The New Russian Worki„g„,e"'; Co,m.en' r ^\^^'"''">'' ^■> U. S. B„r. Labor, May, m5 <^'""I>ensal.on .Acl. Hnllelin. 12. PremiuiiLs in Retail Trade /m..... u„i., f- 13. Poverty and Death Ra e /'.i" 4 i, ^/' ' ''/'"'■' '^^'P'- "'"5. ij T^K T . ,. '^«*i«.. / uoi. Am. Stat. Assoc. Dor i(ii»x 14. The Jews in Russia. Yale Review. Aug. l.)06 15. Is Municipal Ownership \V„rth \Vhile-> /",./ c „ Aug., 1906. '"^' '"'<■'•• ^o'-. «ew>H., 16. Meat Animals and Pacljing House Products r « n , . . ?;'\''":""'-%«"''- ^•''- »«. i«o« (published „„'„;.f;ousKo "■"'•• 18. RUSS.VS WheaTsu^;,:'.- ';::i'r 'r.rS'"''^^^ 19j^^The Prohlen, of Domestic .Service. ./o„n,.' A!"^ Hco„.. Oct.. Jan..'^'9Sr '" ^^'-"^-'--- A Criticism. ,„„.,, p„,,, ^,„„ i';,rrw-o/.,'^:MaS:'';;r'' "'^' '^""' ""••^ «"-ussio„). ,„, il 1908 23. Russia's Wheat Trade. U. S. Depl, Agric, Hiir. Slulistics, Bull. No. 65, 1908. 1908 24. Russian Wheat and Wheat Flour in European Markets. Ibid., Bull. 06, 1908. 99 pages. 1908 25. Commercial America in 1907. (Compiled and edited anony- mously). Dept. of Commerce and Labor, Bureau of Statistics, 1908. 1908 26. The Economic Aspects of the Negro Problem. Int. Soc. Bev., Vol. VIII: Feb., March, April, May, June, 1908. Vol. IX: July, Sept.. Oct., 1908; Jan., March., June, 1909. Vol. X: July, Sept., Dec. 1909; May, June, 1910. (Signed I. M. Robbins.) 1909 27. Problem of Domestic Service (discussion). Aincr. Journ. Social., March, 1909. 1910 28. Depth and Breadth of the Servant Problem. McClare's, March. " 1910. (In conjunction with Daniel Durant.) 1911 29. Domestic Service as a Labor Problem. Journ. I fame Econ. April, 1911. 1911 30. Compulsory Old Age Insurance in France. Pol. Sc. Quart., Sept., 1911. 1911 31. Workmen's Insurance in Italy. Twenty-fourth An. Bept., U. S. Comm. and Labor, Chapter VU. 1911 32. W^orkmen's Insurance in Russia. Ibid., Chapter IX. 1911 33. Workmen's Insurance in Spain. Ibid., Chapter X. 1911 34. Workmen's Insurance in France. Ibid, Chapter IV. (In con- junction with G. A. W^eber.) RUSSIAN 1897 1. The School Season in New York. Viestnik Vospitania (The Messenger of Education.), Oct., 1897. 1898 2. American University Education. Ibid., Jan., Feb., 1898. 1898 3. A University for the People. Ibid., Oct., 1898. 1898 4. The Social Movement in the United States. Sievernij Viestnil: (The Northern Messenger), March, 1898. 1899 5. The Policy of Expansion. Znanuja (The Banner), May, 1899. 1900 6. New Journalism in America. Knizhki Nedieli (The Week's Library), March, June, July, 1900. 1900 7. Coeducation in America. Viestnih Vospitania (Mesenger of Educatian), Oct., 1900. 1901 8. Secondary Education in America. Busskaya Shkola. (The Russian School), Nov., Dec, 1901. 1902 9. The Process of Concentration in Xmerican Industry. Xarod- noye Khoziaistvo (National Economics), March, Apr., 1902. 1902 10. Letters from America. Voskhod (Ihe Dawn), Apr., 1902. 1902 11. John B. Clark's Trusts. A Review. Busskoyc Economi- cheskoye Obosrenie (Russian Economic Review), July, 1902. 1902 12. M. Peters' Capital and Labor— A Review. Ibid, Aug., 1902. 1902 13. P. Roberts' The Anthracite Goal Industry— A Review. Ibid. Sept., 1902. 1902 14. Th. Burton's Commercial Crises— A Review. Ibid, Oct., 1902. 1902 15. The American Immortals. Obrazovanie (Education). Oct., 1902. 1902 16. Industrial Feudalism in the United States. Nauchnoe Obosreniv (The Scientific Review), Jan., Feb., 1902. 1903 1903 1903 1903 1903 1903 1903 1903 1904 1904 1904 1904 1904 1904 1905 1905 1905 1905 1905 1905 1905 1905 1905 1905 1905 1906 1906 1906 1906 17. Hamilton's Savings and Saving Institutions — A Review. Busskoye Economicheskoye Obosrenie (Russian Economic Review). Jan., 1903. 18. Seligman's Economic Interpretation of History — A Review. Ibid, Jan., 1903. 19. Labor Legislation in the U. S. Congress. Ibid.. Aug., 1903. 20. Laughlin & Willes' Reciprocity— A Review. Ibid.. Sept., 1903. 21. Laughlin's Money— A Review. Ibid., Nov., 1903. 22. The Jewish Problem in New York. Voskhod (The Dawn). May, June, July, Aug., 1903. 23. Chautauqua — an Educational Center. Busskaya Shkola (Rus- sian School), Nov., Dec, 1903. 24. Child Labor in America. Busskaya Mysl (Russian Thought), Oct., Nov., 1903. 25. Mead's Trust Finance— A Review. Busskoye Economicheskoye Obozrenie (Russian Economic Review^, Feb., 1904. 26. Mitchell's Organized Labor— A Review. Ibid., Feb., 1904. 27. Roberts' Anthracite Goal Communities — A Review Ibid May, 1904. 28. Gillman's Methods of Industrial Peace — A Review Ibid August, 1904. 29. To My Correspondents. Voskhod (The Dawn), Sept., Oct., 1904. 30. American Imperialism. Viestnik Samoobrazouania (The Mes- senger of Self-Education), Nos. 34, 37, 39, 1904. 31. Children's Courts in America. Pedogogicheski Listok (The Pedagogical Monthly), Jan., 1905. 32. Economic Condition of the Russian Jews in New York Voskhod (The Dawn), Jan., 1905. 33. Letters from America. Ibid., April, 1905. 34. New York Impressions. Ibid., Aug., Sept., Nov., 1905; Jan., 35. Ghent's Benevolent Feudalism— A Review. Busskoye Econo- micheskoye Obosrenie (Russian Economic Review), Feb., 1905. 36. P. Leroy Beaulieu's Les Etats-Unis au XX Siecle— A ' Review. Ibid., Aug., 1905. 37. Evolution of Domestic Life. Busskaya Mysl (Russian Thought). June, 1905. 38. American Bureaucracy. Mir Bozhi (God's World). Sept., 1905. 39. The Cotton and Cotton Manufactures in the United States. Viestnik Finansov (Messenger of Finance), 41-44, 1905. 40. Municipal Corruption in the United States. Izvestia Moskovskoi Gorodskoi Dumy (Annals of the Moscow Municipal Council) Oct., 1905. 41. The Struggle Against Municipal Corruption in Philadelphia Ibid., Nov., 1905. 42. Municipal Elections. Ibid., Feb., 1906. 43. Franchise Capital in American Municipalities. Ibid. March Apr., 1906. 44. Municipalization of Street Railways in Chicago. Ibid,, June, 1906. 45. Care of Dependent Childrep jn the United States. Ibid Sept., 1906. • ■ : ■ * ; f! ' ' - % % 1906 1906 1906 1906 1906 1907 1907 1907 1908 1908 1908 1909 1909 1909 1909 1909 1910 1910 1910 1910 1910 1910 1911 46. The Public School System of New York City. /ftzU, Oct.. 1906- Jan., Feb., 1907. 47. Domestic Service in America. Russkaya Musi (Russian Thought), Feb., 1906. 48. Women in American Industry. Ibid., Apr., 1906. 49. Professional Work of American Women. Ibid., Sept., 1906. 50. Capital and Nation's Food. Sovremenny Mir (The Modern World), Sept., 1906. 51. Russian Jews in America: I. Economic Condition. Ibid., March, 1907. ' 52. Russian Jews in America: II. Social Life. Ibid., June, 1907. 53. Current Municipal Problems in America. Izviestia Moskovskoy Gorodskoy Dumy (Annals of the Moscow Municipal Council) Aug., 1907. 54. Finances of New York City. Ibid., March, April, May, 1908. 55. Women in American Universities. Busskaya Mysl (Russian Thought), Sept., 1908. 56. The Labor Problem and the American Law. Russkoiie Bogatstvo (Russian Wealth), Sept., 1908. 57. The Presidential Election in the U. S. Ibid., Jan., Feb., 1909. 58. American Milling Industry. Russky Melnik (The Russian Miller), Jan., Feb., 1909. 59. A New Study of Municipal Ownership. Ivziestia Moskovskoy Gorodskoy Dumy (Annals of the Moscow Municipal Council), March, 1909. 60. The Pure Milk Problem. Ibid., May, June, 1909. 61. Medical Inspection of Schools. Ibid., Sept., 1909. 62. Playgrounds in American Cities. Ibid, March, 1910. 63. One Week at a Negro University. Russkoye Bogatstvo (Rus- sian Wealth), Jan., Feb., 1910. 64. The High Cost of Living. Viestnik Finansov (Messenger of Finance), No. 20, 1910. 65. The Problem of Accident Compensation in American Legisla- tion. Ibid., No. 38, 1910. 66. The Sinking Funds of New York City. Izviestia Moskovskoy Gorodskoy Dumy (Annals of the Moscow Municipal Council) June, 1910. 67. The Housing Problem in America. Ibid., Dec, 1910. 68. Industrial Education in the United States. Ibid., March, 1911. 1 • COLUMBIA UNIVERSITY LIBRARY This book is due on the date indicated below, or at the expiration of a definite period after the date of borrowing, as provided by the rules of the Library or by special ar^ rangement with the Librarian in charge. DATE BORROWED DATE DUE DATE BORROWED DATE DUI MK<^ CM(M»)M100 D860.2 RnMno?^, I. m, R32 Studies In Y^orkmerJs Insurance: Italy, Pussi£, Spain. ^3^^» ' mm NEH JAN121M 1$ COLUMBIA UNIVERSITY LIBRARIES 0044242042 JUL26t94t END OF TITLE