OTHER PROGRESSIVE LAWS

The Dairy Association Law

An act passed by the Special Session of the 1919 legislature provides for the issuance of county bonds for the purchase of dairy cows to be sold to farmers, for the organization of dairy associations for the purchase of such animals for their members, and for the guaranteeing of the loans that are made. Under this law, dairy associations are to be governed by rules prescribed by the Dairy Commissioner and the county commissioners, the act providing that such rules shall cover the insurance of all animals purchased by members; that females shall be bred to pure-bred sires; that the animals shall be guarded against. exposure to transmittable diseases; and that rules and regulations shall be made governing the sale of unproductive and unprofitable animals. New members of associations can be admitted only with the written consent of two-thirds of the old members; every new member must agree in writing to all the regulations and rules of the association; and members are jointly and severally liable for all debts, contracts and obligations to the county on account of the purchase of animals, to the extent of ten per cent in addition to the amount of individual purchases.

The Dairy Association law points the way to progressive and effective action for the organization and financing of the better and more profitable agricultural industry that is to take the place of the one-crop system.

The Feed and Seed Bond's Act

The 1919 legislature enacted a law under which county commissioners of any county may issue bonds for the purpose of making loans to farmers who had serious crop losses, for the purchase of feed and seed. Under the provisions of this law $2,590,000 in bonds and $590,000 in county warrants were issued during 1918. In 1919, $775,000 of these bonds were bought by the State Board of University and School Lands.

While this law has been to some extent regarded as an emergency measure, conditions in those sections of North Dakota where crop losses from drought are most frequent, render it desirable and necessary that there be some permanent provision for relief. Experience under the law has completely proved its value, and it is likely that it will be retained as an important part of the policy of the State for the protection of its fundamental industry.

Workmen's Compensation

The North Dakota Workmen's Compensation Law passed in 1919 is probably the most just and liberal ever enacted. It embodies the best provisions of the Iowa law, which since its enactment has been used as a model in other states, and incorporates many provisions from the Federal Compensation law. Of the forty-two states in the union now providing Workmen's Compensation Insurance, the North Dakota law provides the most liberal compensation to workmen and extends the benefits of compensation to more classes of employees. The North Dakota law applies to all employments except agriculture, domestic service, and common carriers by steam railroad; the latter class being taken care of under the United States law. The North Dakota system is administered by a Workmen's Compensation Bureau, consisting of five members, the commissioner of agriculture and labor, the commissioner of insurance, ex-officio, and three other members appointed by the governor, one to represent employers, one employees and the third the public.

The fund out of which compensations are made is provided by annual payments of all employers subject to the law, which are fixed by the Workmen's Compensation Bureau for each employment or occupation. The bureau is empowered to classify en.. ployments with regard to the degree of hazard, and to fix the rates of premium for each classification, so that all payments will cover the awards made under the act, together with all the costs of administration, and the accumulation of a surplus. The Workmen's Compensation Bureau is required ultimately to fix rates that will cover the compensation provided, the expenditures of the bureau and ten per cent annually for the creation of a surplus, until such surplus has reached the amount of fifty thousand dollars, when the amount annually so set aside shall be five per cent until such time as the surplus shall be large enough to guarantee the fund from year to year.

It is therefore apparent that the intent of the law is that compensation to employers shall be provided at cost. While the cost of administration for the first year will be higher than for the years after the department is fully organized, the commissioners confidently expect that the expenses for the first year will be far below those incurred by private companies. After the first year the bureau expects to administer the fund at an expense ratio not to exceed ten per cent of the earned premiums of the fund, which is one-fourth of the expense ratio of liability insurance companies. This reduction in cost is made

possible by the elimination of all duplication of service, of the fifteen to twenty-five dollars on every hundred dollars formerly paid by private companies for luxurious private offices for getting business for the payment of large salaries, the up-keep of luxurious offices, and for the payment of the dividends that have to be earned for the stockholders of private companies.

Compliance with the Workmen's Compensation law relieves an employer of all liability for injuries to any person in his employ. Compliance consists in paying into the fund the premiums assessed by the bureau. Advance payments are made on the basis of the employer's estimate of his payroll, and at the end of the year he furnishes his actual payroll, the proper adjustments being made if the latter proves to be greater or less than the estimate. Any employer not complying with the provisions of the law is subject to certain penalties and forfeitures provided therein, and in addition is deprived of all "common law" defenses such as the Fellow Servant Rule and Contributory Negligence. Furthermore, in case of inury an employee may elect to bring his claim to the bureau for hearing; and, notwithstanding the failure of the employer to comply with the law, it will proceed to hear the claim, and if it is found to be valid, to make awards under the law, in all respects as though the employer had complied with its provisions. The employer is then given ten days notice in which to pay the compensation, and in case of failure the bureau will immediately assess a penalty of fifty per cent of the amount of the award, which may be recovered in an action in the name of the State for the benefit of the person entitled to it.

The North Dakota Workmen's Compensation law has extraterritorial application, which means that its provisions protect the employees of North Dakota employers, though injury be incurred in employment outside of the State. That is, if a North Dakota employer hires a man in North Dakota and sends him to work in another state, the law will follow him into the other state, and give him protection while performing services covered by his insurance certificate.

The state treasurer is custodian of the Workmen's Compensation fund. All moneys in the fund are required to be put out at interest, and the earnings therefrom are credited to the fund. In comparing the amount and cost of protection reported by the North Dakota Workmen's Compensation system with other private or public compensation systems, it is important to remember that the North Dakota law provides for Workmen's Compensation

Insurance-not for Employers Liability Insurance. There is an important difference. Employers Liability Insurance proceeds upon the theory of fault and negligence, so that there is no compensation if the injured workman has been at fault or if his negl gence has contributed to his injury. Or, in other words, the employer is not required to pay for the injury unless it be proven that it was the result of his fault or negligence. Under this system a very small percentage of workmen ever recover damages for injury, and that usually after a great deal of delay and expense in court costs and attorney's fees. On the other hand, under Workman's Compensation Insurance the question of fault and negligence is entirely excluded, and proper compensation is awarded in all cases of injury, except when resulting from the willful intent of the employee.

It follows that larger premiums will have to be paid in order to cover the greater number of awards, and that, other things being equal the cost of administration will be greater, on account of the increased amount of business to be transacted. But, viewed from the broader point of view of justice to workingmen and the protection of the community, it is less costly and more efficient. It assures to every workman injured, or to his dependents, proper protection in case of injury, and at the same time relieves him of all the costly litigation that is involved in the other system. And it relieves the community from the necessity of caring for numerous charity patients and paupers who on account of injury in employment are no longer able to support themselves. It tends to maintain a high average of financial responsibility and solvency on the part of employees; relieves merchants from the necessity of extending credit during periods of disability; and it relieves the courts of a tremendous amount of litigation, leaving them free to perform other important public services. Most important of all, just and effective Workmen's Compensation maintains the standard of manhood and womanhood. It enhances the selfrespect of the worker. It increases his confidence in the justice and beneficence of his government. It raises his standard of living, and enables him to support his family in a reasonable degree of comfort, and to educate his children so that they will be selfsupporting and self-respecting citizens.

The North Dakota Workman's Compensation act covers all injuries received in the course of employment. If an, employee is killed, his dependents receive the compensation No compensation is allowed unless the person injured is disabled for more than seven days; but if the disability exceeds seven days, com

pensation is paid from the time of the injury. Medical, surgical, and hospital services and supplies are paid for out of the compensation fund.

Compensation is based on a percentage of the wages that would have been earned by the injured employee during the period for which he is disabled. With certain exceptions it is sixty-six and two-thirds per cent of the average weekly earnings; but the maximum compensation is not to exceed twenty dollars per week, nor the minimum to be less than six dollars per week; except in cases where the wage is less than six dollars per week, when the compensation is the full amount of the wage.

Where the employee receives an injury which results in total disability, he receives compensation for the remainder of his life. In the case of permanent partial disability the compensation is for life, and is based upon the percentage which the permanent partial disability bears to total disability. In all other cases the compensation is adjusted to the amount and the duration of the disability.

When an employee is killed in an accident, or dies as a result of an injury received in the course of the employment and leaves a widow, she will receive a weekly compensation equal to thirtyfive per cent of his weekly average earnings, the same continuing until her death or marriage. If the widow remarries she receives a sum equal to one hundred and fifty-six weeks' compensation, and thereafter her compensation ceases. It the employee leaves a widow and children, thirty-five per cent will be allowed to the widow and ten per cent for each child, the total not to exceed sixty-six and two-thirds per cent of the employee's average weekly earnings. The compensation of any child ceases when he marries or reaches the age of eighteen years; or, if over eighteen and incapable of self-support, becomes self-supporting. In the case of the death of a married woman, due to injury in employment, similar compensation is allowed to the widower and children. In the case of orphans, twenty-five per cent is allowed for one child and ten per cent for each additional child, up to the maximum of sixty-six and two-thirds per cent of the average weekly wage. Compensation is also allowed to dependent parents, brothers, sisters, grandparents and grandchildren. In computing compensation in cases of death the law requires that weekly wages shall be considered to have been not more than thirty dollars nor less than eighteen dollars, the total weekly compensation not to exceed the weekly wage.