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{ wri, ——__ = Conducted by H.E.STOCKER ‘Ns Hi "J YY alee, ‘ sf How Reducing Accidents to a Minimum Will Increase Your Profits UCH interest has_ recently M been aroused in industrial accidents—their causations, frequency and severity, also the new increase in insurance compensation rates, effective Sept. 1, 1931. This increase is to be distributed over three industrial groups in the following ratios: Manufacturing 17 per cent; contracting, 9 per cent; all others 13 per cent. In a statement recently issued by George S. Van Schaick, New York State superintendent of insurance, he said: “The necessity for keeping work- men’s compensation rates from be- ing advanced to an _ unreasonable level is particularly important as workmen’s compensation insurance is compulsory. At the present time the industries of this state are labor- ing under heavy burdens as a result of economic conditions that have existed for almost two years. “While companies furnishing work- men’s compensation insurance under present conditions are confronted with a drain on their resources which may properly call for an increase in rates as requested, they should do everything in their power to reduce the drain on their premium income resulting from commissions and ad- ministration expenses. “At the national convention of in- surance commissioners at Chicago in June it was the sense of the conven- tion, as indicated by a _ resolution 36 By H. E. Stocker there adopted, that the insurance companies exert every effort to bring about further economies in the oper- ation of their business. Increase in Insurance Rates Approved “It is held that a reasonable in- crease in workmen’s compensation insurance rates, to be effective on new and renewal business on and after Sept. 1, 1931, shall be 15 per cent. It is also held that the emer- gency factor of this increase—namely 4.7 per cent—is solely an emergency increase and will be subject to re- vision as soon as experience throws more light on the problem. “Through the proper exercise of rigid economy in the conduct of the workmen’s compensation insurance business, together with a strict re- view of classification, and payroll records of their assureds, to the end that all assureds are properly classi- fied and required to pay the proper rate of premium on their full pay- rolls, sufficient additional revenues and savings should result to enable the insurance companies to over- come this emergency factor.” As mutually wise and equitable as this new rate would seem to be, especially taking into consideration its emefgency needs, there is one factor which is apparently over- looked, one on which none of the suggested economies of insurance Management will have any perma- nent corrective result. MARINE Revirw —October, 1931 I refer to the securing and keep- ing under control the human wastage costs represented by personal in- juries caused by industrial accidents, which are the basis on which ratios are generally based, notwithstanding the constructive work done by the National Safety council by many of our industries individually, especially the more efficiently managed indus- tries. Management as a whole has not made the same efforts to reduce or perhaps eliminate this type of financial loss as they have those of production and distribution of their products and, therefore, there is a great opportunity for economy by reduction of wastage. While an emergency increase in insurance rates may be necessary, it is vitally necessary to bring greater attention to the need for eliminating the basic cause of high rates and broaden the application of safety engineering in American industry. For example, the work done by the United States Protection & Indemn- ity Agency, Ine. has demonstrated clearly the great gains that can be made in reducing the number and severity of accidents in stevedoring work. While the human factor should be given every consideration, the money losses to a shipping company resulting from accidents must be made clear to secure the fullest co- operation. At this time when profits are re- duced, or non-existent, it is vital