Document 4QoN56xGQM5nX0Naz5eZgbbKV

FILE NAME Insurance Industry INS DATE 1937 DOC INS052 DOCUMENT DESCRIPTION Western Safety Conference Presentation - The Problem of Occupational Diseases in Industry with Cover Letter | | P.005 NO.2017 TX 10:24 04/21/98 en + pe ae cee AT THE REPRODUCED NATIONAL NATIONATNIONAAL L ARCHIVES . 1-0-4-1 1-0-4-1 1-0-4-1 4.MY.NGL INEE S 4.M.NGINES PRESIDENT PRESIDENT Indexed fifiller er Association of Casualty and Surety Executives Number One Park Avenue New York August August 31 1937 FACIEM JEPAN^ MENTJEPAN^ MENT AR FALKENED CALIFORNIA Mr. Willien Mivision of 4-45 first 7. Cameron In'or In'orIn'or In'or , 5 Stam^/nvde Stam^/nvde Stam^/nvde $ , iol eS a ten of knoot oa ten BMM^ MAR^ BMM^ MAR^ BMM^ BMM^ MAR^ MARBM^MAR^ ^ 1775-1221 1775-1221 The it vne treated to for for the se cent annual meeting on the subject Industry Industry of the Tretorn Snity Conference at sland ate Problem of Organizational Cisnare in entice After of the the meeting meeting 4 number of the delegates rosated tagm tagm mwa the Industry Inl Accident Commiss- Daveva Daveva amm & T good idea to send mot Stubn a court court eu indicated your of that it of might also be a 1" hoone hoone with this auginaktan am onelgning 8 cony of the talk herewith acknowledging that you are interested in the subject and if it should happen thethe you could simpler men of additional anntre plenes onll on me I will be glad to take tner of your insu^sto insu^sto With bort wichen T 17:32 De pre eters mr te RECEIVED RECEIVED > SEP 4 1937 Mat! 1 . Poo BI G~ALDMOSS pee SL, ad fl + 1 encl ran er ahh oir oe ee, as ee Pecific Coast Deportant rer pte gue e ; A P.05 No.002 8:16 21'98 APR 1-903-645-5228 ID ASSOC & NIX HAROLD P| 900'd LIOZ XL 12:01 86/12/60 orn. t REPRODUCED AT THE BATIONAL ARCHEVES ? Jf f . THE PROBLEM OF OCCUPATIONAL DISEASES IN INDUSTRY Pacific by REGINALD MOSS Coast Manager Association of Casualty and Surety Executives An address before the third annual meeting of the Western Safety Conference at Portland Oragon August 20th As a preface to this discussion of The Problem of Industry I would like to explain briefly the interest Occupational Diseases in Association of in the subject of the Casualty and Surety Executives which I The Association is have the honor to represent composed of some 60 of the companies of the country the leading casualty Insurance and surety majority of which write a men's substantial volume of work- compensation insurance Its activities are studying problema largely along research lines -- and situations that are of mutual interest to its member companies recent years and the bringing of such diseases under the laws of the workmen's workmen's compensation various Stateo with a bonefits to such resultant increase in the coat of compansation compansation a problem and consequently has received the Association careful study of the It is recognized that where a workman's death or disease that arises out of his disability resulte from a employment he or his dependents compensation Just as if are entitlad to the calamity had resulted from employment At the same time it is felt an gccident in the coures of that socipational disease ba carefully studied and drafted so that first any abuses coverage should outset and will be obviated at the second that the costs of place too compensating such disabilities will not heavy burden on industry Hence the research work has done on the which my Association subject This is a Safety Conference On first thought safety donates dent prevention and only acci- nearly all the workmen's compensation laws -- with a few ceptions in this country ALL- originally covered only injuries by ex otherwise called accidental injuries But from accident calla for just as much protection against diseases the social standpoint safety included as against accidants and to be as safety measures are all the campaigns that have been or for the are being waged prevention of yellow fever smallpox diphtheria scourges of tuberculosis and other humanity Now the workmen a compensation laws are being brought into 400 LIOZ XL 12:01 86/12/10 M^ PRODUCEDAT THE CLATIONAL ARCHIVES Pd same category by being amended or liberally construed to cover occupational v7,thediscanos thereby placing the burden upon industry of preventing such diseases or of compensating for their consequeDQNS In principle occupational diseases mean only those diseases for which indus- try in the person of the employer can rightly be held responsible that is diasands which are peculiar to and characteristic of particular processes occupations or employmento as distinguished from those diseases which are more or less comman to humanity or to the community regardless of differences in occupation number of the a workmen compensation laws in this country cover occupation- al disenten implicitly by including all injuries and not merely accidental injuries {. arising out of the employment or by expressly covering occupational diseases but without defining them or by covering occupational diseases as do- fined in general terms But a majority of our compensation laws that cover occupe- tional diseases and nearly all of such laws abroad define such diseases by listing them in a schedule schedule " The great weight of expert opinion I believe is in favor of this pien It not only avoids much uncertainty and wasteful litigation including pos- sible abuse of power by Industrial Commissions Commissions but by directing the attention of employers specifically to the diseases for which they will be held responsible it is also most conducive to prevention The experience in California in my opinion confirms the merits of the schedule plan Ever since 1918 our woziomen's compon aation law has implicitly covered silicosis as well as other industrial disensen but hardly anybody ever heard of silicosis and Zew ployera had any idea of its seriousness or of means of preventing 10 until in 1930 and 1933 a series of decisions validating long belated claims surprised them and their insurance curriers with a mass of liabilition for coems of a disease contracted years before and of which they had had no warning In connection with compensation for occupational diseases prevention is of first importance Experience indicates that the standard occupational dise8806 that is as lead those which have longest been or zow are more generally recognized nach sine mercury and phosphorus poisoning the beads or compressed air ill 5893 sto can be almost sutirely prevented or greatly reduced by practicable means. But as to that more lately recognized occupational disease siliconia there are doubts and difficulties In Great Britain and New South Wales where 2 20 d 200 21 86.IZ Ndu 8779-579-206-1->I JOSS,/ XIN TO28H 800 d LIOZ XL 12:01 86/16/00 re. $ REPRODUCED AT THE NATIONAL ARCHIVES oad vA anywhere they have had longer experience with compensation for silicosis than in this country the lossos therefrom as represented by the cost of compensation still show increasing tendencias It is true according to reports that in the mines of South Africa where measures for prevention of and compensation for silicosis originated and where tha most elaborate methods for elimination of harmful silica dust have been most thoroughly tried out the losses are being reduced But such favorable results I an informed may be ascribed in large part to paculiar labor conditions In those mines the common labor most exposed to silica dust is almost entirely negro the negroes are medically examined monthly and are laid off at the first indication of bronchial affection or loss of weight and their employment is only temporary seldom for longer than three years Manifestly such moans of prevention ere hardly practicable with white labor Declarations by public authorities in some of our compensation States that ailicosis therein is already on the way to extinction may bs accepted as a pious hope but has no adequate basis in experience to support it as a prediction true The peculiar difficulties of asbestosis and any other about silicosis dust disesse of and the samo is the lungs arina approximately from the facts that it is a disease of gradual contraction the average period of contraction being said to be between seven and twelve years that it is incurable though it may be arrested in its earlier stages but thereafter becomes progresdive that by itself it seldom causes silicotics being disability especially or death but is commonly complicated with tuberculosis susceptible to tuberculosis and the tubercular being especially susceptible to siliceais that traces of silicosle may be thought to aggravate or accelerate disability or death from diseases of ordinary life or old age and finally that silicosia with its complicatione is extremely difficult to diagnose correctly ^ danger that amployers and their insurers have good reason to fear from these characteristics of silicosia is that they may be held responsible for the entiro results wherever disability or death from some ordinary disease or the infirmities of old cen be found - upon the opinion evidence of one partial physician -- to have been accelerated or otherwise contributed to by more traces of silicosis This means expanding the payment of compensation for silicosis beyond its legitimate purpose and intent far in the direction of level health old 3 80'd 700 ON 21 86. Nd 8779-919-206-1 0I JOSSU 8 XIN 070AUH 070AUH 600'd LIOZ XL 02:01 86/12/60 na REPRODUCED AT THE PSATIONAL ARCHIVES Ed : A bd and life insurance for the goneral run of workmen in the dusty trades That would a entail a cost which would be utterly unendurable To avoid this danger it is ea- sential that on claims for compensation medical questions shall be determined by impartial medical experts and that where some other disease or infirmity is the principal cause of disability or death the employer shall not be held liable for compensation for more than the degree to which siliconis has contributed to the result There are other safeguards against abuses that I believe need to be incorporated in any statute extending the compensation law to cover silicosis but I have not time to enumerate and discuse them now However I feel that I should not omit to point out that such safeguards against abuses have also a bearing on pre- vention The more clear and definite the responsibility for silicosia and obligations for its prevention that are placed upon the employer the greater are the probabilities of successful prevention To hold the employer responsible for evory aggravation of ill health to hia umployees which a jury or commission of laymon may choose to attribute to dust exposure in his plant affords no practicable standard of duty for him and is discouraging to reasonable efforts for prevention An especially sorious difficulty in the way of compensating for silicosis arises from the fact that the disease is of such slow contraction Whenever conditions are first studied there are found in nearly every plant in the dusty trades a substantial proportion of the workman who are affected with silicosis in various stages resulting from various periods of past exposures These men are not yet disabled same even may never be disabled by the disease but inevitably many of them will eventually became prematurely disablod thereby and the employer or bis insurance carrier of the date when the disabilities occur may have to pay compensation for the consequences of the past years of contraction These contingent im pending liabilities for past events are in insurance parlance termed accrued liabilities and in the aggregate they may amount to immense s 'ms The problem of meeting such charges may be handled though not without difficulties if employars and insurance carriers ba long forewarned However the accrued liabilities constitute practically a barrier to the sudden imposition of a novel liability to compensata for silicosis without special provisions to reduce the burden from tho ex post facto imposition of the called accrued liabilities for subsequent disablements and deaths resulting from a disease largely contracted in the past 4 60'd 200 ON 81 86.IZ Ndu 8779-579-206-1 0I OOSSH 8 XIN 0708UH0708UH 010'd LIOZ'ON XL 18:01 86/18/10 mang? NEPROXXUCED AT THE NATIONAL AFICHIVES e 4 a e This difficulty is illustrated by experience in New York Workmen's Compensation Law of New York was extended by amendment In 1935 the to cover disable- ment or death from silicosia on practically the same terms and conditions as acci dontal injuries Thereupon the insurence carriers proposed rates for such coverage with loadings for the accrued liabilities that aroused a loud protest from the industries affected even when reduced by the Superintendent of Insurance whose approval was necessary for the premium rates of private companies The approved rates were then so far below actuarial estimates of the probable loss of the accrued liabilities that the private companies quite generally refused to provide the insurance When application was made to the competitive New York State Insur- ance Fund -- which is required to accept all risks offered but is permitted to make its own rates -- that institution fixed its rates higher and in some cases vory much higher then the maximum rates permitted to the private carriors The result was that many in some cases of the industrial establishments or the branches sending their work to other States and thousands affected shut down of workmen were laid off ^ sa consequence at the next session of the New York Legislature with al- most unanimous approval pensation law was amended including that of organized labor to limit compensation for silicosis the workmen's com-| to 500 in cases where disability should result in the first month thereafter to 550 where disability or death should result in the second month and so on increasing the limit 50 from month to month until a final limit of 3000 should be reached That amendment re- duced the cost of silicosis coverage to endurable rates the down industries promptly resumed and the workmen who had bean laid off were promptly taken back A similar provision for reduced compensation benefit~ during a transitory period is included in the occupational diseases law recently adopted in Michigan I believe that some such provision is essential in every measure that may be enacted newly providing for compensation for silicosis asbestosis or other dust disease of the lungs In another way and another sense accrued liabilities cause trouble especially for insurance carriers in the field of compensation for silicosis Experience in Wisconsin and to some extent also in California ind oates that claims for silicosis do not eventuate from year to year fairly regularly in proportion to the exposures incurred as do claims for accidents and the majority of 5 Od 200 ON 61 de 8779-919-206-1 0I JOSSU 8 XIN 0702UH0702UH ITO LION XL 2:00 86/12/10 ; t REPRODUCED AT THE PLATIONAL ARCHIVES ARCHIVES _ ; occupational diseases Instead they come in waves in periods of depression when workmen are laid off from other causes and then first feel that they are disabled As long as employment is good workmen affected with silicosia hang on and the ac- crued liabilities keep piling up to mature in the indefinite future Under present employment conditions there are relatively few claims made for compensation for silicosis But the loss cost of claims under such conditions affords no basis for premium rates adequate to build up reserves to meet the losses from silicosis that will eventually result from exposures during the good times The rates must be specifically loaded for that purpose and if the loadings be not adequate it means ruin for insurance carriers -- whether private companies or State funds That rates adequate therefor will not be obtainable under the public pressure for cheap insurance is an imminent peril affecting most directly insurance carriers but indirectly all concerned I have said that in regard to occupational diseases prevention comes first compensation second Therefore I would wish to impress it upon you that the matters relative to compensation Just discussed are all pertinent to prevention I believe that the imposition upon employers of a liability to compensate for occupational diverses is a most effective incentive to their prevention -- but only I would emphasize upon condition that such llability be reasonable and practically endurable and that the insurance provided be at adequate rates proportionate to the risks covered by individual policies If the liability for occupational diseases imposed by law be unendurable in any respect or degras it will in that respect or to that degr^'emerely kill the goose that lays the golden egg -- as happened in New York And if the insurance be so provided that industry may shift any material pro- portion of its losses onto insurance carriers or that the bad risks may diatribue their excess lasens among the good risks the incentive for prevention will be greatly reduced where not entirely eliminated Purther and in my opinion mont reasonably it is contended that if employers be made liable for compensation for all known occupational diseases regardless of fault such liability should as between employer and his employees be exclusive of all other liability for injuries to the health of employess alleged to arise out of the employment otherwise than by accident Reasonable standards of sanitary conditions in all industrial employments 6 I'dI'd ZOO 61 86.17 adu 8779-579-206-7 ->I OOSSW 8 XIN 07020K07020K a ZIO LION XL 08:01 86/12/10 $ REPRODUCED AT THE NATIONAL ARCHIVES PA should be enforced by the State Beyond that to hold the employer liable for com pensation for such occupational diseases as may nevertheless result and yet to leave him liable to damages in speculative litigation based upon his alleged negligence wherever there is some speculative casual relation between the working conditions and an employee's illness would be intolerable primary purpose of the workmen compensation law is to eliminata the wasteful litigation and uncertainties of the old employers liability system Whatever law for the compensation of occupational diseases may be adopted it should be so drawn as to fulfill that purpose Turning now to the direct methods and means for occupational disease preven tion Manifestly these are matters for formulation by specialista Julemande by anginoera chemists biologists and industrial physiciens Given a compensation law such as I have advocated the more highly organiced industries may bo relied upon to meet the problems of prevention by methods dictated by their own experts But the general run of industries will need authoritative advice And the merginal establishments will need to be whipped up to the maintenance of minian~-m standards Moreover if the schedule plan of defining occupational diseases be gonerally adopted as I hope it will bo there will be need of appropriate procedure to determine additions to the schedule as new industrial diseases are developed As to the public machinery best adapted to promote prevention there may be reasonable differences of opinion but the experts upon whom I rely recommend the creation of a Bureau of Industrial Hygiene in the State Health Department or Labor Department -- preferably since more appropriately in the Health Department -- with a poraonnel of highly qualified specialista and adequately equipped to perform the following functions First To study the causes of diseases occurring among employees in industry to instruct and advise as to the means for their avoidance and prevention and to recommend to the Legislature additions to the schedule of occupational diseases along with such amendments to the law relative to occupational disease compensation as experience may demonstrate to be noedod It may be advisable to go even further and to empower the Bureau of Industrial Hygiene itself to add to the schedule of occupational diseasee subject to special regulations Second Such Bureau of Industrial Hygiene should be empowered to mako amend and enforce reasonable rules for the protection of the health of employons in in- dustry Such rules should be clear plain intelligible and practicable so as to 7 Zi'd Zi'd 200 ON 07 86.IZ Adu 8779-919-206-1 01 JOSS 8 XIN 070 0Uk 70 Uk ETO LIOZ XL 02:01 86/17/00 a NEPRODUCED AT THE NATIONAL ARCHIVES ra establish stendards that all persons affected can understand and live up to in certainty Juch rules should replace all existing statutes that are arbitrary out of date or that impose upon employers obligations ignorantly intended for the pro- tection of the health of employees but which are so indefinite that compliance can neldom be certain leaving it open for ignorent juries to find the employer at fault and to mulet him for damages whatever he may do Such rules -- which would naturally take the form of codes for various indus- tries - should be adopted or amended only after ample public notice and hearings opon to all parties affected and should be subject to review by the courts as to their reasonablene68 A modal for provisions to regulate the making power to be delegated to such a bureau as here advocated may be found in the Illinois Heal and Safety Act as enacted in 1936. Finally the rules to formulated should be en- forced by appropriate penalties and it should be provided that they shall not serve as bases for damage suits for alleged compliance One of the most difficult features to agree upon in a program for occupation- al disease prevention relates to the practiass of employment and periodical medical examinations of workmen that line that may be proposed Organized labor is inclined to oppose anything in In the New York law labor succeeded in having in- sortod a declaration to the ^ffect that employment sraminations are against the public policy of the State But some such examinations are necessary I believe that the difficulties in the way of gonaral agreement upon essential practices in this respect can be ironed out and the necessary examinations made under public regulation to avold the abuses that labor fears But I can not venture to predict how this can or will be worked out It will doubtless interest you to know how the eight States in what is com monly known as the Pacific Coast field treat occupational diseases under their respective workmen compensation lawa The Arizona act specifically excludes acqupational and other diseases except as they result from injuries by accident In California the law was amended by the 1917 Legislature to cover occupa- tional diseases by enacteunt of the provision nighe term ' injury shall include sny injury or disease arising out of the employment The present Idaho law does not cover occupational diseases except cases re- sulting from injuries by accident but the 1937 Legislature paused a bill creating 8 I'dI'd 700 07 86. N 8779-579-206-1 CI JOSSV 8 XIN 07088H O LIOZ XL 12:01 86/12/10 REPRODUCED AT THE HATIONAL ARCHIVES ra an Occupational Disease Commission which is to work with the State Department of Health in making a survey of the industrial disease problem and report its findings to the next Legislature The Montana Legislature likewise this year adopted legislation ta provide for a survey of the occupational disease situation as a possible basis for future legislation The commission has been appointed and is at work In Nevada where the business ployers is a State monopoly the law they are caused by accident of insuring the compensation liability of an uxcludes occupational disonses exc^ptwhere Oregon likewise does not cover occupational diseases under its workmen'sworkmen's compensation act but a resolution was adopted by the Legislature this year for appointment of a commission to prepare an amendment for submission to the 1939 Legis- lature that would extend compensation to include industrial diseases The Utah workmen's workmen's such cases as result from compensation act excludes injurios by accident occupational diseases except In Washington the compensation act was amended by this yearLegislature so as to include under compensation benefits a schedule of 21 specific industrial diseases The shall be borne szendment provides that equally by the employer the and cost of occupational the employse disease coverage Taking the country as a whole it is found that there are nine States in- cluding the District of Columbia that provide compensation for occupational dia- essen under general provisions These Illinois Indiana Missouri Nebraska States require employers to compensate status include California California Connecticut North Dakota and Wisconsin Twelve otl^r for occupatimal diseases under a schedule provision which specifies the diseases for which benefits shall be paid other States notably Massachusetts have by court decisions extended the Several scope of compensation laws to include at least certain occupational diseases I have now outlined the subject assigned to me as comprehensively as I am able The particular program that I have advocated follows generally the Sugges tions for Provisions for a Workmen's Compensation Plan for Occupational Diseases " formulated by an Advisory Committee of the Association of Casualty and Surety Executives Copine of this brochure may be obtained upon request addressed to the Association at No. 1 Park Avanue New York City Such program it is recognized would need some variations to adapt it to local conditions in any particular Stato 9 I'd 700'ON TZ 86 Ad 8775-979-206-7 a JOSSU 8 XIN 070 8H a GIO LIOZ XL 12:01 86/12/10 ATTN pein +0 : . - 7 AT THE NATIONAL ARTISVES HEPRODUK^ D > r A It is also to be understood that many of the features of such program may not be , generally agreed to But I hope that by presenting what I am led to believe is a consistent and practicable program for dealing with occupational diseases I have aroused your interest in the subject sufficiently to incite you to a detailed study of the problem with all its complexitias St'd 700'ON 17 86.IT Ndu 10 8779-909-206-7 0I JOSSU 8 XIN 0708H