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The cases in Table XXIV consumed a total of 28 days of the court's time, at a cost to the State and county of $2,774.31. The court cost to the parties at suit was $927.60. While there were 32 cases in which suit was commenced, only 12 of them proceeded to trial, the rest being discontinued either because of settlement or some other cause resulting in failure to prosecute. The average attorney fee for the above cases was $787.33; added to this cost to the worker (exclusive of his permanent loss of earning power) was an average medical expenditure of $111.33; and a loss of wages averaging $180.60, thus showing that while the average amount recovered by the injured in court amounted to $2,542.78, there was left for the injured but $1,338.55, when final settlement was made, and, it will be noted, three of these accidents resulted in death.

It appears that all the injuries in Table XXV occurred in manufacturing plants, that is, where there was machinery. In the first case the time intervening between the accident and the commencement of suit was 4 months, 1 week; the second, 5 months, 3 weeks; the third, 8 months, 4 days; the fourth, 5 weeks; the fifth, 7 weeks. This shows an average delay of 3 months and 3 weeks before suit was even begun. The delay until the conclusion of the litigation was, of course, much longer. During the period of time lost from work the injured workmen were dependent upon others for bread, clothing and shelter-in addition to the usual wants was the expense caused by the injury.

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The average daily wage from this table is $1.91, multiplying this by the total reported time lost, we find the total loss of wages to be $1,393.48 in these five cases; an average loss per injured man $278.70 wages. The total medical expense was $600.00; the average expense per man is $120. From these figures it can be seen that the average combined loss of wages and medical expense per injured man $315.78. The average recovery was $765.00. Taking from this average recovery the average expense we have a balance of $449.22 which represents the compensation received by the injured man for his injury. From this amount must be taken the expenses of the trial and the lawyer's fees. Reckoning court and attorney costs at 40% we have left to the injured workman an average of $173.15 as compensation. Since all the cases reporting a recovery in this table were those in which there was permanent injury, this $173.15 is the average of which the injured workman received for a permanent reduction of his earning power.

IV. EFFECT OF PRESENT SYSTEM ON EMPLOYER.

The Commission having become satisfied that industrial accidents do occur in Michigan to an extent justifying remedial legislation, and that the compensation ultimately received as a whole, by those injured, and in the vast majority of individual cases, was inadequate, turned its attention to an inquiry as to the effect of the present system upon the employer.

A general inquiry developed the fact that approximately 65% of the larger employers of the State endeavored to protect themselves against liability for negligent injuries by indemnity insurance. The total amount of premiums paid yearly by Michigan employers for all forms of indemnity insurance approximates $725,082.00. Of this amount a proportion is applicable to some other forms of insurance, but the exact proportion was not reported to the commission. The investigation by the New York Commission on Workmen's Compensation developed the fact that throughout the country as a whole not to exceed approximately 36% of the amount of premiums paid for liability insurance were paid out in losses by the indemnity companies. All of the balance, except a not unreasonable percentage which inures to the companies' profit, was absorbed in the securing of business and the expenses of litigation. If the same ratio were made applicable to Michigan an economic loss has been sustained by the employer and employe that yearly approximates $435,000 if we could approximate the total of the premiums above set forth to industrial indemnity. The indemnity companies perform a useful function, but their interest rests solely in the economical adjustment of loss. The employers to some extent treat the insurance not as indemnity but as if it were a transfer of all liability, and instead of adjusting the loss themselves and seeking indemnity from the company they co-operate with the indemnity company so that the latter may at once assume the full burden of disposing of the litigation. Not all of the loss which arises under the present system of indemnity insurance could or should be saved, since the insurance of the risk is a necessity, if the workman is to be adequately and completely protected. But the litigation which inevitably arises and is undoubtedly encouraged by the present form of indemnifying against this liability could be prevented with a very considerable saving for both the employer and the workman.

The defense of litigated cases by the employer, either without the assistance of the indemnity company or in co-operation with the company, is a great expense to the employer, not only by reason of the actual expenditures for costs and attorneys, but as well because of the dissatisfaction aroused with other employes, the loss of time and loss of service. Altogether it can with justice be said, that the effect upon the employer of the present system is as serious except for the physical suffering caused by the injury, as the effect upon the workman and his family. By this we mean that the pecuniary loss is probably as great upon the employer as upon the employe.

V. EFFECT OF PRESENT SYSTEM ON PUBLIC.

The effect upon the public of the present method of handling industrial accidents was the subject of consideration.

The data already set forth in the tables as to litigation demonstrated the heavy expense of the actions brought in the courts. The Commission was continually impressed with the economic waste to the public because of the differences constantly arising between the employer and the employe, the animosity created and encouraged by the common law system.

That the public has, however, a direct financial interest in the problem of caring for the injured workmen cannot be doubted.

To demonstrate the truth of this statement an investigation was attempted of the records of the poor commission of Detroit and the coroner's office of Wayne county. The information there secured indicates clearly that the families of injured workmen are a substantial charge upon the public funds. The coroner's office shows a record of 91 fatal accidents in 1910 arising from all causes but an investigation was completed in only twelve industrial accidents, which were selected at random.

The inquiry as to the records of the poor commission developed statistics as to 14 fatal accidents, 13 partial permanent disabilities and 20 temporary disabilities.

The examination of the data above referred to and the evidence of the extraordinary waste in litigation confirmed the Commission in its opinion that the expense of the present system to the State is so great that it could with justice bear the expense of the administration of any remedial statute.

The data secured is in detail as follows:

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Medical and funeral. 0

$12 00

$2,000

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$666 67 100 00

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Former employer gives widow $10 per month for 3 years.

$250 incumbrance.

Owns home;

Mother earns money washing clothes; one son works irregularly.

Owns home, unencumbered; income from roomers.

Owns home; earns money boarding and rooming.

Home broken up; widow living with married daughter.

Receiving aid from poor commission; destitute.

In comfortable circumstances; with sister.

Home broken up; widow out at service; son contributes little.

Widow no means of support except washing clothes.

Widow running small store; debts used up insurance money.

Receiving aid from poor commission; live in two rooms.

Widow now at housework; sickly and destitute; oldest boy in hospital.

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