Quorum. Sec. 5, Seven or more of the directors shall constitute a quorum for

the transaction of business. Vacancies in any office may be filled in such manner as the by-laws shall provide.

Subscribers. Sec. 6. Any employer of labor in the State may become a subscriber excepting as provided in Part I, section 2 of this act.

First meeting. Sec. 7. The board of direc tors shall, within thirty days of the subscription of twenty-five employers, call the first meeting of the subscribers by a notice in writing mailed to each subscriber at his residence or place of business not less than ten days before the date fixed for the meeting.

Votes. Sec. 8. In any meeting of the subscribers each subscriber shall have

one vote, and if a subscriber has five hundred employees to whom the association is bound to pay compensation, he shall be entitled to two votes and he shall be entitled to one additional vote for each additional five hundred employees to whom the association is bound to pay compensation, but no subscriber shall cast, by his own right, or by right of proxy, more than ten votes.

when policies Sec. 9. No policy shall be issued by the association until not less may issue tnan gft employers have subscribed, who have not less than two thousand employees to whom the association may be bound to pay compensation.

Data to be filed. Sec. 10. No policy shall be issued by the association until a list of the subscribers, with the number of employees of each; together with such other information as the commissioner of banking and insurance may require, shall have been filed with the department of banking and insurance; nor until the president and secretary of the association shall have certified under oath that every subscription on the list so filed is genuine and made with an agreement with every subscriber that he will take the policies so subscribed for by him within thirty days of the granting of a license to the association by the commissioner of banking and insurance to issue policies.

Issue o( policies Sec. 11. If the number of subscribers falls below fifty or the number suspended, when. cf empi0yee8 to whom the association may be bound to pay compensation falls below two thousand, no further policies shall be issued until other employers have subscribed, who, together with existing subscribers, amount to not less than fifty, who have not less than two thousand employees, to whom the association may be bound to pay compensation, said subscriptions to be subject to the provisions of the preceding Bection.

License. Sec. 12. Upon the filing of the certificates provided for in the two

preceding sections the commissioner of banking and insurance shall make such investigations as he may deem proper and if his findings warrant it, grant a license to the association to issue policies.

Classification. Sec. 13. The board of directors shall distribute the subscribers into groups in accordance with the nature of the business and the degree of hazard incident thereto. Subscribers within each group shall annually pay in cash, such premiums aB may be required to pay the compensation herein provided for the injuries which may occur in that year.

Contingent lia- Sec. 14. The association may in its by-laws and policies fix the bility. mutual contingent liability of the subscribers for the payment of losses

and expenses not provided for by its cash fund, but such contingent, liability of a subscriber shall not be less than an amount equal to and in addition to the cash premium.

Assessments. Sec. 15. If the association is not possessed of rash funds above its insured premiums sufficient for the payment of incurred losses and expenses, it shall make an assessment for the amount needed to pay such losses and expenses upon the subscribers liable to assessment therefor in proportion to their several liability. Every subscriber shall pay his proportional part of any assessment which may be levied by the association, in accordance with the laws and his contract, on account of injuries sustained and expenses incurred while he is a subscriber.

Dividends. Sec. 16. The board of directors may from time to time, by vote fix the amount to be paid as dividends upon the policies expiring during each year after retaining sums sufficient to pay all compensation which may be payable on account of injuries sustained and expenses incurred. All premiums, assessments and dividends shall be fixed by and for groups as heretofore provided in accordance with the experience of such group, but all the funds of the association and the contingent liability of all of the subscribers shall be available for the payment of any approved claim for compensation against the association.

_ Sec. 17. Any proposed premium, assessment, dividend or distribu- Premiums, etc., tion of subscribers shall be filed with the commissioner of banking and t0 be ftPProvedinsurance and shall not take effect until approved by him after such investigation as he may deem proper and necessary.

Sec. 18. The board of directors shall make and enforce reasonable Prevention of rules for the prevention of injuries on the premises of subscribers, and accldentsfor this purpose the inspector of the association shall have free access to all such premises during regular working hours. Any subscriber aggrieved by such rule or regulation may petition the Industrial Accident Board for a review, and it may affirm, amend or annul the rule or regulation.

Sec. 19. Every subscriber shall, as soon as he secures a policy, give Notice to emnotice, in writing or print, to all persons under contract of hire with p yee*' him that he has provided for payment of compensation for injuries with the association.

Sec. 20. Every subscriber shall, after receiving a policy, give notice Samesubject. in writing or print , to all persons with whom he is about to enter into a contract of hire, that he has provided for payment of compensation for injuries by the association. If any employer ceases to be a subscriber, he shall, on or before the day on which his policy expires, give notice to that effect in writing or print to all persons under contract of hire with him. In case of the renewal of nis policy no notice shall be required under this act. He shall file a copy of said notice with the Industrial Accident Board.

Sec. 21. If a subscriber, who has complied with all the rules, regula- Employers to tions and demands of the association, is required by any judgment of a S^enf* court of law to pay any employee any damages on account of any personal injury sustained by sucji employee during the period of subecription, the association shall pay to the subscriber the full amount of the judgment and the cost assessed therewith, if the subscriber shall have given the association notice of the bringing of the action upon which the judgment was recovered, and an opportunity to appear and defend same.

Sec. 22. The corporate powers of the association shall not expire Association to because of failure to issue policies or make insurance. continue.

Sec. 23. The board of directors appointed by the governor under Expenses, the provisions of Part III, section 2, of this act, may incur such expenses in tne performance of its duties as may be approved by the governor; such expenses shall be paid by the State out of any funds not otherwise appropriated, not to exceed five thousand dollars.

Pabt IV.

Section 1. The following words and phrases, as used in this act, Definition*, shall, unless a different meaning is plainly required by the context, have the following meaning: '' Employer'' shall include the legal representatives of any original employer.

"Employee" shall include every person in the service of another under any contract of hire, expressed or implied, oral or written, except one whose employment is but casual, or is not in the usual course of the trade, business, profession or occupation of the employer. Any reference to any employee who has been injured shall when the employee is dead, also include the legal beneficiaries of such employee to whom compensation may be payable.

"Average weekly wages" shall mean the earnings of the injured employee during the period of.twelve calendar months immediately preceding the date of injury divided by fifty-two; but if the injured employee lost more than two weeks during such period, then the earnings for the remainder of the twelve calendar months shall be divided by the number of weeks remaining after the time lost has been deducted. When, by reason of the shortness of the time of the employ

30597°—Bull. 126—14 26

meat of the employee, it is impracticable to compute the average weekly wages as above defined, it shall be computed t>y the Industrial Accident Board in any manner which may seem just and fair to both parties.

"Association" shall mean the "Texas Employees Insurance Association" or any other insurance company authorized under this act to insure the payment of compensation to injured employees, or to the beneficiaries of deceased employees.

"Subscriber" shall mean any employer who has become a member of the association by paying a year's premium in advance and receiving the receipts of the association therefor: Provided, That the association holds a license issued by the commissioner of banking and insurance as provided for in Part III, section 12 of this act.

lasuranoe oom- Sec. 2. Any insurance company, which term shall include mutual panifls. recjprocaj insurance companies lawfully transacting a liability or

accidentbusiness within this State, shall have the same right to insure the liability to pay the compensation provided for by Part I of this act, and when Buch company issues a policy conditioned to pay such compensation the holder of such policy shall be regarded as a subscriber so far as applicable under this act; and when such company insures such payment of compensation it shall be subject to the provisions of Parts I, II and IV and of sections 10, 17 and 21 of Part III of this act, and shall file with the commissioner of banking and insurance its classification of premiums none of which shall take effect until the commissioner of banking and insurance has approved same as adequate to the risks to which they respectively apply and not greater than charged by the association, and such company may have and exercise all of the rights and powers conferred by this act on the association created hereby but such rights and powers shall not be exercised by a mutual or reciprocal organization unless such organization has at least fifty subscribers, who have not less than two thousand employees.

Refund of pre- Sec. 3. Any subscriber who has paid his annual premium as promiuras. vided in section 1, Part IV of this act, but who ceases to be an employer

after three months and before the expiration of one year, may by satisfactory proof of such fact made to the Industrial Accident Board as herein created be entitled to a refund of such portion of the annual premium so paid by him as the portion of the year in which he is notan employer bears to the whole year: Provided, That in no event shall more than three-fourths of the annual premium by any subscriber who claims the benefit of this refund ever he refunded.

Sec. 4. Should any part of this act be, for any reason held to be invalid or inoperative, no other part or parts shall be affected thereby, and if any exception to or limitation upon any general provision herein contained shall be held to be unconstitutional or invalid or ineffective the general provision shall nevertheless stand effective and valid as if it had been enacted without exception or limitation.

Kopealer. gEC_ 5_ All laws or parts of laws in conflict herewith are hereby


Aot In efleot. Sec. 6. This act shall take effect and be in force on and after the first day of September, Nineteen Hundred and Thirteen. Approved April 16,1913.



Compensation for injuries to employees.

i-eKisiiition au- Article 32. The general assembly may pass laws compelling compensation for injuries received by employees in the course of their employment resulting in death or bodily hurt, for the benefit of such employees, their widows or next of kin. It may designate the class or classes of employers and employees to which such laws shall apply. Ratified March 4,1913.


ACTS OF 1911.

Chapter 74.—Workmen's insuranceIndustrial insurance department.

Section 1. The common-law system governing the remedy of work- Grounds of men against employers for injuries received in hazardous work is incou-law' sistent with modem industrial conditions. In practice it proves to be economically unwise and unfair. Ita administration has produced the result that little of the cost of the employer has reached the workman and that little only at large expense to the public. The remedy of the workman has been uncertain, slow and inadequate. Injuries in such works, formerly occasional, have become frequentand inevitable. The welfare of the State depends upon its industries, and even more upon the welfare of its wageworker. The State of Washington, therefore, exercising herein its police and sovereign power, declares that all phases of the premises are withdrawn from private controversy, and sure and certain relief for workmen, injured in extra hazardous work, and their families and dependents is hereby provided regardless of questions of faultand to the exclusion of every other remedy, proceeding or compensation, except as otherwise provided in this act; and to that end all civil Suits abolished, actions and civil causes of action for such personal injuries and all jurisdiction of the courts of the State over such causes are hereby abolished, except as in this act provided.

Sec. 2. There is a nazard in all employment, but certain employ- Extrahazardous ments have come to bet and to be recognized as being inherently coii- employ"1'^etantly dangerous. This act is intended to apply to all such inherently hazardous works and occupations, and it is the purpose to embrace aft of them, which are within the legislative jurisdiction of the State, in the following enumeration, and they are intended to be embraced within the term "extra hazardous" wherever used in this act, to-wit:

Factories, mills and workshops where machinery is used; printing, electrotyping, photo-engraving and stereotyping plants where machinery is used; foundries, Dlast furnaces, mines, wells, gas works, waterworks, reduction works, breweries, elevators, wharves, docks, dredges, smelters, powder works; laundries operated by power; quarries; engineering works; logging, lumbering and shipbuilding operations; logging, street and interurban railroads; buildings being constructed, repaired, moved or demolished; telegraph, telephone, electric light or power plants or lines, steam heating or power plants, steamboats, tugs, ferries and railroads. If there be or arise any extra hazardous occupation or work other than those hereinabove enumerated, it shall come under this act, and its rate of contribution to the accident fund hereinafter established, shall be, until fixed by legislation, determined by the department hereinafter created, upon the basis of the relation which the risk involved bears to the risks classified in section 4.

Sec 3. In the sense of this act words employed mean as here stated, Definitions, to wit:

Factories mean undertakings in which the business of working at commodities is carried on with power-driven machinery, either in manufacture, repair or change, and shall include the premises, yard and plant of the concern.

Workshop means any plant, yard, premises, room or place wherein power-driven machinery is employed and manual labor is exercised by way of trade for gain or otherwise in or incidental to the process of making, altering, repairing, printing or ornamenting, finishing or adapting for sale or otherwise any article or part of article, machine or thing, over which premises, room or place the employer of the person working therein has the right of access or control.

Mill means any plant, premises, room or place where machinery' is used, any process of macninery, changing, altering or repairing any article or commodity for sale or otherwise, together with the yards and premises which are a part of the plant, including elevators, warehouses and bunkers.

Mine means any mine where coal, clay, ore, mineral, gypsum or rock is dug or mined underground. Quarry means an open cut from which coal is mined, or clay, ore,

mineral, gypsum, sand, gravel or rock ia cut or taken for manufacturing, building or construction.

Engineering work means any work of construction, improvement

or alteration or_ repair of buildings, structureSj streets, highways, sewers, street railways, railroads, logging roads, interurban railroads, harbors, docks, canals; electric, steam or water power plants; telegraph and telephone plants and lines; electric light or power lines, and includes any other works for the construction, alteration or repair of which machinery driven by mechanical power is used.

Except when otherwise expressly stated, employer means any person, body of persons, corporate or otherwise, and the legal personal representatives of a deceased employer, all while engaged in this State in any extra hazardous work.

Workman means every person in this State, who, after September 30, 1911t is engaged in the employment of an employer carrying on or conducting any of the industries scheduled or classified in section 4, whether by way of manual labor or otherwise, and whether upon the premises or at the plant or, he being in the course of his employment, Certain Injuries away froni the plant of his_ employer: Provided, however, That if the ofemptoyer.P injury to a workman occurring away from the plant of his employer is due to the negligenceor wrong of another not in the same employ, the injured workman, or if death results from the injury, his widow, children, or dependents, as the case may be, shall elect whether to take under this act or seek a remedy against such other, such election to be in advance of any suit under this section; and if he take under this act, the cause of action against such other shall be assigned to the State for the benefit of the accident fund; if the other choice is made, the accident fund shall contribute only the deficiency, if any, between the amount of recovery against such third person actually collected, and the compensation provided or estimated by this act for such case. Any such cause of action assigned to the State may be prosecuted, or compromised by the department, in its discretion. Any compromise by tne workman of any such suit, which would leave a deficiency to be made good out of the accident fund, may be made only with the written approval of the department.

Any individual employer or any member or officer of any corporate employer who shall be carried upon the pay roll at a salary or wage not less than the average salary or wage named in such pay roll and who shall be injured, shall be entitled to the benefit of this act as and under the same circumstances as and subject to the same obligations as a workman.

Dependent means any of the following-named relatives of a workman whose death results from any injury and who leaves surviving no widow, widower, or child under the age of sixteen years, viz: invalid child over the age of sixteen years, daughter, between sixteen and eighteen years of age, father, mother, grandfather, grandmother, stepfather, step-mother, grandson, granddaughter, step-son, step-daughter, brother, sister, half-sister, half-brother, niece, nephew, who, at the time of the accident, are dependent, in whole or in part, for their support upon the earnings of the workman. Except where otherwise provided by treaty, aliens, other than father or mother, not residing within the United States at the time of the accident, are not included.

Beneficiary means a husband, wife, child or dependent of a workman, in whom shall vest a right to receive payment under this act.

Invalid means one who is physically or mentally incapacitated from earning.

The word "child," as used in this act, includes a posthumous child, a child legally adopted prior to the injury, and an illegitimate child legitimated prior to the injury.

The words injury or injured, as used in this act, refer only to an injury resulting from some fortuitous event as distinguished from the contraction of disease.

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