Liability and compensation insurance; industrial accidents and their prevention, employers' liability, workmen's compensation, insurance of employers' liability and workmen's compensation

Front matter

11 Ml

Hill

iBBl

Preface

The inadequacy of the employers' liability principle gave rise to a demand for more liberal legislation and the period beginning with 191 1 has been marked by the enactment of workmen's compensation laws granting benefits to workmen for practically all injuries occurring during working hours. Such laws are now in force in thirty-two states and two territories, and an act was passed in 1916 covering all civil employees in the service of the Federal Government. These developments have broadened and intensified the need for insurance to relieve employers of the uncertain and heavy burden of payments to employees and to secure workmen in their rights to receive compensation. To furnish insurance commensurate with these needs both private and governmental agencies have been created and extended.

Workmen's compensation and its insurance involve numberless intricate problems, legislative, administrative, and technical. The revolutionary nature of the principle and its rapid adoption have made it difficult to arrive at adequate solutions. Much remains to be done, but the accomplishments of legislators, public and private officials, and insurance scientists have been remarkable, and what might have been a growth of many years has been compressed into six. The work of these six years has been fundamental, precedent has not been allowed to rule, and the future will probably see the development of present principles rather than the discovery of new ones.

This volume aims to present the results of the workmen's compensation movement in the United States in terms of legislation and insurance practice, and to exr vi PREFACE plain the industrial accident problem and the development of liability and compensation principles as a background for the comprehension of present problems. In method of presentation it follows the outline of a course of instruction given by the writer in the Wharton School of the University of Pennsylvania; taking up successively industrial accidents and their prevention, the law of negligence, the development of workmen's compensation, existing compensation statutes, and the principles and practices of insurance as applied to employers' liability and workmen's compensation. Where authorities disagree, both sides are presented — the book is intended to be a text rather than a polemic — and final conclusions on controversial subjects have been avoided. Wherever necessary in the interests of accuracy, chapters have been read and criticized by specialists. Suggestive references are added wherever they are available, that the student who desires to do so may be able to go to more exhaustive and particularized sources.

It is hoped that the volume may prove useful as a survey of the general field for professional and lay students as well as for those whose work lies in specialized branches of the insurance business.

Space does not permit detailed acknowledgment of the assistance received from public and private officials, without whose cooperation the preparation of this text would have been impossible. The author is greatly indebted to these, and especially to Dr. S. S. Huebner, at whose suggestion the work was undertaken, and to Dr. Bruce D. Mudgett, both of whom have read the manuscript and aided with constructive suggestions.

Ralph H. Blanchard.

University of Pennsylvania.

Part I Industrial Accidents And Their Prevention

I. Industrial Accidents 3

The extent of industrial accidents, 3. The results of industrial accidents, 5. Responsibility, 9. Accident statistics, 11. The problem of industrial accidents, 12.

II. The Prevention of Industrial Accidents ... 13

Agencies of accident prevention, 14. Methods of accident prevention, 17. Occupational diseases, 26.

III. The Results of Accident Prevention .... 27

Reduction in accident frequency, 27. Reduction in loss of time and wages, 31. Net saving ? 33. Conclusion, 36.

Part II Employers' Liability And Workmen's Compensation

IV. The Law of Negligence as Applied to the Relation

of Master and Servant 41

The law of negligence, 41. Employers' liability, 42. Proof of liability, 45. Assumption of risk, 45. Common employment, 46. Contributory negligence, 48. Burden of proof, 48. Death limitation, 49. Contracting out, 49. Modifications of the common law, 49. Modifications of the fellow-servant rule, 50. Historical development, 52.

vii viii CONTENTS

V. Criticism of the System of Employers' Liability . 57

The employee's criticism, 59. The employer's criticism, 63. Society's criticism, 64. Summary, 65. Other attempts to solve the accident problem, 65. Conclusion, 66.

VI. The Theory of Workmen's Compensation ... 68

Changes in industrial relations, 69. Change from handicraft to machinery, 72. The growth of cities, 73. New social ideas, 73. Workmen's compensation, 75. Definition of workmen's compensation, j6. Basis of workmen's compensation, 76. Conclusion, 78.

VII. Historical Development of Workmen's Compen-

sation in Foreign Countries 79

Germany, 82. Early laws, 82. Liability act of 1871, 83. Workmen's compensation, 84. Provisions of the present law, 87. Great Britain, 88. Employers' liability, 88. Workmen's compensation, the law of 1897, 90. Later acts, 92.

VIII. Historical Development of Workmen's Compen-

sation in the United States and Territories . 94

Compensation schemes of private corporations, 95. Workmen's collective insurance, 96. The Maryland act of 1902, 96. The Massachusetts act of 1908, 98. The federal act of 1908, 99. Later acts, 99.

IX. Workmen's Compensation Legislation in the

United States and Territories .... 103

Election of compensation, 104. Employments covered, 108. Injuries covered, no. The beneficiaries of compensation, 112. Waiting period, 114.

X. Workmen's Compensation Legislation in the

United States and Territories (Continued) . 116

The schedule of compensation, 116. Classification of industrial accidents, 116. Total disability benefits, 118.

CONTENTS ix

Partial disability benefits, 120. Specific permanent injury schedules, 121. Death benefits, 123. Medical and surgical aid, 126. Commutation of payments, 126. Criticism, 127. The computation of compensation, 129.

XL Workmen's Compensation Legislation in the

United States and Territories (Continued) . 132

Administration, 132. Administrative commissions, 132. The duties of the commission, 134. Advantages of the commission plan, 136. Disadvantages of the commission plan, 137. Miscellaneous provisions, 137. Burden of cost, 137. Compensation a'preferred claim, 138. Assignments and exemptions, 138. Accident prevention, 139. Other provisions, 139.

XII. The Constitutionality of Workmen's Compensa-

tion Laws 142

Compulsory laws, 143. The Ives case, 143. The Clausen case, 147. Supreme court decisions, 151. Elective laws, 155.

Part III Employers' Liability And Workmen's Compen- Sation Insurance

XIII. The Theory of Insurance as Applied to Employ-

ers' Liability and Workmen's Compensation . 161

The theory of probability, 162. Accuracy of the theory, 163. Application of the theory of probability to the insurance of employers' liability and workmen's compensation, 168. Practical qualifications, 171.

XIV. Methods of Insurance 173

Self-insurance, 173. Types of insurance organizations, 174. Insurance requirements, 175. Methods of insurance permitted, 177. The stock company, 179. Characteristics, 179. History and present position of stock companies, 180. Arguments for insurance in stock x CONTENTS companies, 181. Arguments against insurance in stock companies, 183. The mutual, 184. Characteristics, 184. History and present position, 185. Arguments for mutual insurance, 186. Arguments against mutual insurance, 187.

XV. Methods of Insurance (Continued) .... 188

The state funds, 188. Characteristics, 188. History and extent of business, 190. Arguments in favor of state funds, 191. Arguments against state funds, 192. Conclusion, 193. Conclusions from experience, 195. The future, 197.

XVI. The Policy Contract 199

General principles, 199. A contract of indemnity, 199. A personal contract, 200. Rules of construction, 201. Employer's liability contract, 201. The obligation assumed, 201. Premium computation, 202. Inspection,

203. Cancellation, 203. Notices, 203. Warranties,

204. Miscellaneous, 204. Workmen's compensation contract, 205. The obligation assumed, 205. Premium adjustment, 206. Notice, 206. Cancellation, 206. Approval of the contract, 206.

XVII. Manual Premium Rates 208

Employers' liability rates, 208. Workmen's compensation rates, 209. History, 209. The importance of the rate, 210. The task of rate-making, 210. Kinds of rates, 211. Manual rates, 211. Definition, 211. Use of manual, 211. The component parts of a manual rate, 212. Factors to be considered in computing probable loss cost, 215. Factors causing variation in loss cost between states, 221. The expense and profit factors, 222.

XVIII. Manual Premium Rates (Continued) . . . 223

Calculation of manual rates, 223. The problem, 223. The machinery of rate-making, 224. Method of cal-

CONTENTS xi dilating manual rates, 226. Basic pure premiums, 227. Law differential, 227. Accident frequency, 230. Increasing cost of the act, 232. Industrial diseases, 232. Catastrophes, 232. Expense, 232. Typical rate calculation, 235. Criticism of present methods of calculation 22,6. The future, 237.

XIX. Merit Rating . . 240

Bases for merit rating, 241. Schedule rating, 241. Definition, 241. The schedule, 242. Types of hazard, 243. Machine-employee ratio, 246. Safety organiza- . tion, inspection service, and education, 248. Use of eye protectors, etc. ; maintenance and inspection, 249. Formula rating, 249. Application of the schedule, 249. Conclusion, 252.

XX. Merit Rating {Continued) 253

Experience rating, 253. Definition, 253. Purpose, 253. Requirements for a scientific plan of experience rating, 254. The New York plan, 255. Calculation of loss ratio, 255. Neutral zone, 257. Maximum debits and credits, 257. Computation of actual debits and credits, 258. Schedule rated risks, 259. Application of the plan, 259. Other plans, 259. Proposed plans, 260. Summary of arguments pro and con, 261. Conclusion, 262.

XXI. Reserves 265

Unearned premium reserve, 265. Method of calculation, 266. Loss reserves, 267. Definition and purpose, 267. Desiderata, 268. Difficulties, 269. Methods of calculation, 270. Present law, 272. Defects of the present law, 275. Proposed law, 275. Other methods used, 278.

XXII. Insurance of the Catastrophe Hazard . . . 280

Limits, 282. Accumulation of catastrophe reserves, 282. Reinsurance, 283. Workmen's compensation, 284.

xii CONTENTS

APPENDICES

PAGE

A. The New York Workmen's Compensation Law . 289

B. Form of Workmen's Compensation and Employers'

Liability Policy Contract Covering a Typical Manufacturing Risk 361

Index 381

Chapter I

Industrial accidents, those accidents occurring to an employee during his working hours, create the problems of which the systems of Employers' Liability and Workmen's Compensation are attempted solutions.

The Extent of Industrial Accidents. — It has been estimated by Dr. Frederick L. Hoffman that there occurred in the United States, during the year 191 3, 700,000 industrial accidents, involving a disability period of over four weeks and 25,000 which terminated fatally. 1 In the metal and miscellaneous mineral mines of the United States the statistics of accidents for the year 191 3 are as follows : 2

Per 1000 Number employed

Fatally injured 683 3.54

Seriously injured (loss of 20 days or

Slightly injured (loss of over one

and less than 20 days) 27,081 140.25

The mining industry is of an extremely hazardous nature and the accident frequency among its employees

1 Industrial Accident Statistics, p. 6.

2 U. S. Bureau of Mines, Technical Paper 94, p. 2J.

is higher than in any other. In two other dangerous industries for which we have statistics for the entire country the following tables have been compiled :

Accidents to Employees of Steam Railways Year Ending June 30, 1915 3

Per 1000 Number employed

Accidents in 155 Iron and Steel Plants Year Ending June 30, 1910 4

Per 1000 300- Number day workers

Permanent injury 400 2.72.

Temporary disability (one day

Unfortunately we .have no statistics to show the number of industrial accidents throughout the United States in other industries but certain of the individual states have gathered valuable data from which the following table is cited as especially significant :

3 Interstate Commerce Commission, Accident Bulletin No. 56,

4 Report on Conditions of Employment in the Iron and Steel Industry in the United States, Vol. IV, p. 43.

Industrial Accidents in Massachusetts for the Year Ending June 30, 1914 5

Fatal accidents 509

Non- fatal accidents 96,382

Rates per 1000 employees :

Automobile factories 287.

Box makers (wood) 137.

Car and railroad shops 100.

Cotton mills 6y.

Boots and shoes 54.

Clothing makers 22.

Average for 25 selected industries 102.85

Further citations would only serve to emphasize the fact which the above figures clearly indicate, that industrial accidents play no inconsiderable part in the conduct of modern business, and are sufficiently numerous to warrant careful study with a view to eliminating them or mitigating their consequences. Such a study should proceed first in the direction of a determination of the economic loss occasioned by them. Physical suffering and anxiety must also be considered but these consequences are not capable of measurement and therefore cannot be made the subject of a scientific study. Having determined the economic loss we will be in a position to judge the magnitude of the problem and to adopt measures for its solution which are commensurate with its importance.

The Results of Industrial Accidents. — The occur-

5 Second Annual Report of the Industrial Accident Board of Massachusetts, Boston, 1915, pp. 29 and 32. 2 rence of these injuries is directly detrimental to the employee, the employer, and to society.

The most obvious loss is borne by the working class, the employee and his dependents, and consists of several items; loss of time, loss of wages, and medical and surgical expenses. In 130 steel plants during the two years ending June 30, 19 10, the average time lost per injury was 12.9 days, and the average time lost per 300 day worker for the same period in plants and departments where data were available was estimated at 3.5 days. 6 Assuming an average wage of $2.00 per day the wage loss per injury was $25.80 and per worker, $7.00, in addition to medical and surgical expenses. These figures are based on a total of 11,702 accidents and 150,714 days lost ; involving, at the $2.00 wage, a total loss of $301,428 in wages, to which should be added payments to physicians and hospitals. In Massachusetts the duration of total disability has been analyzed for the 96,382 non-fatal accidents mentioned above with the following results : ,

Duration of Total Disability No. of Cases % of Total

I week and under 24,301 25.21

13 weeks to 6 months. M9 1 1.55

6 months to 51 weeks 438 .45

52 weeks and over 293 .30

Disability of less than one day. . . . 41,269 42.82

6 Report on Iron and Steel Industry. Vol. IV. pp. 53-56.

The wages of the workman who suffered the above injuries have been analyzed as follows :

No. of %of

Wage Groups Cases Total

6 01— $7 00 3,268 3.39

7 01— 8 00 5,468 5.67

10 01 — 11 00 8,471 8.79

13 01 — 1400 8,075 8.38

14 01 — 1500 7,782 8.07

15 01—16 00 3,792 3.93

Wage Groups

$16 01 — $17 00.

17 01 — 18 00.

18 01 — 19 00.

19 01 — 20 00.

20 01 — 21 00.

21 01 — 22 00.

22 01 — 23 00.

23 01 — ■ 24 00.

No. of %of Cases Total

4,085 5,029 1,612

4.24 5.22 1.67

•51

•87

1.32

2.23

All of the above figures apply only to non-fatal accidents which, while they are much more numerous, cause, in the average case, much less economic loss than do fatal accidents, for the majority of workmen have one or more persons dependent in whole or in part upon their wages for support. Of the 509 fatal accidents in Massachusetts 422 involved dependency, 942 persons were totally dependent in 331 cases, and 144 were partially dependent in 91 cases; in 87 cases there were no dependents.

The relative importance of the losses from various types of disability may be indicated in a very general way by a table drawn up by the actuaries of the Industrial Insurance Department of the state of Washington. Assuming that the average work year consisted of 300 days and that the average life expectancy was twenty-five years, this table was compiled for the year ending June 30, 1913. 7

7 Second Annual Report of the Industrial Insurance Department, Olympia, Wash., 1914, p. 102.

Work years lost

Fatal Accidents 8,225.

Temporary Total Disability 1,135.8

Permanent Partial Disability 4,131.2

Permanent Total Disability 325.

13,817-

Volumes might be filled with statistics to show the magnitude of the problem from the point of view of the workingman. He is hard-pressed to meet the necessary expenses of existence and is entirely incapable of providing adequately for himself and his dependents in case an accident removes his source of income. Unquestionably, were his the only loss from industrial accidents, there would be an overwhelming need for investigation and the application of remedial measures.

But the employer is also affected. It is to his interest to have his business proceed efficiently and without interruption; if a workman is injured his place must be filled by finding a new man who will often require considerable time to become accustomed to his work. Damage suits are a frequent result of accidents and these cause friction between employer and employed and involve large expense in the defense of claims on the part of the former. If there were no industrial accidents production would proceed on a more efficient basis and the attention given to the consequences could be expended on other problems.

Thus far the effect of industrial accidents on those most vitally and directly interested has been examined, but if social action is to be demanded people in general must be informed of their interest in the problem before us. Society loses, first from the direct decrease in productivity, due both to the cessation of productive effort on the part of the injured man and to the lowering of the general efficiency of industry. In addition, the injured man and his dependents must be cared for, with a consequent lowering of standards which reacts further to decrease general productivity. If the workman sues his employer for damages the expensive machinery of the law is set in motion and another heavy item of loss is added, for cases of this sort occupy a large share of the court's time where workmen's compensation laws are not yet in force.

Responsibility. — Having investigated the nature and extent of industrial accidents the next step logically is to determine where the responsibility for their occurrence rests. With a knowledge of this, we can more readily attack the causes, and more justly assess the cost of caring for the injured. Many accidents can be traced to a lack of care or to actual wrongdoing on the part of some person, employer or employee, but by far the greatest share of casualties is due to the hazard of industry. By the hazard of industry (or "trade risk") is meant that hazard which accounts for accidents not due to the personal fault of any individual. They are a necessary result of the existing methods of conducting business, and responsibility for their occurrence should be assigned to the industry. That this factor is of very real importance in determining accident rates is shown by an examination of comparative tables showing the rates for different industries over a series of years. It is found that the variation as between industries is approximately constant; for example, mining and steel work will show a high accident frequency, while the textile industry and boot and shoe manufacturing will always have a much lower rate.

Various attempts have been made to analyze reports of accidents in order to determine the personal and industrial factors. The results should be accepted as only approximately correct since so many elements enter into each case that it is impossible to make rigid classifications. A careful statistical investigation in a large iron and steel plant covering a period of six years discloses the following figures : 8

Accidents due to %

Hazard of Industry 60

Negligence of worker 7

Negligence of fellow worker 6

Negligence of employer 4

Not disclosed by the record 23

In different departments of the plant the percentage of accidents due to the hazard of industry varied from 52 to 69 per cent.

Statistics compiled for three years in- the State of Washington are given below : 9

8 Report on Iron and Steel Industry. Vol. IV., pp. 174-5.

9 Second Annual Report of the Industrial Insurance Department, p. g7'

Fourth Annual Report of the Industrial Insurance Department, p. 94.

Accidents due to 1913 1914 1915

Workmen's fault.. 7.8 7.2. 5.3

Fellow servant's fault... 2.4 3.2 1.5

Employer's fault 7 .2 .1

Foreman's, fault 1 .1 .05

Third person's fault 2 .2 .15

Facts not ascertainable. . 19.8 7.4 3.9

100% 100% 100%

Everywhere the testimony is the same; the hazard of industry is responsible for a large percentage of industrial accidents and, with the improvement of safety devices and greater care on the part of both the workmen and his employer, we may expect to see an increase in this percentage.

It is occasionally argued that the extra hazard involved in a given trade is offset by larger wages, but no definite relation between hazard and wages has ever been shown to exist. High wages are usually due to the limited supply of skilled workmen and numerous examples of a low wage scale in extremely dangerous industries are familiar to everyone.

Accident Statistics. — The study of industrial accidents in the United States has been greatly hampered by a lack of reliable and adequate data. Besides, the data of individual states have not been comparable because of variation in thoroughness and methods of classification. The adoption of a uniform and complete accident-reporting schedule is strongly to be advised since it is only by such means that we can secure the facts necessary for a practical consideration of the problem.

The Problem of Industrial Accidents. — With the above facts before us we are in a position to define clearly the problem involved in industrial accidents. We must find methods of eliminating them or of making their consequences less burdensome, always remembering that any social cost is justified which results in a net social saving. A consideration of these methods will occupy the following chapters.

References at end of Chapter III.

Chapter II The Prevention Of Industrial Accidents

The most logical method of eliminating the suffering and economic loss due to industrial accidents is to prevent their occurrence; with the removal of the cause the effect will disappear. But the complete elimination of industrial accidents seems to be impossible if industry is to continue with human beings as a factor in production. Accidents must be divided into two classes, the preventable and the unpreventable, and every reasonable effort should be made to anticipate and eliminate those in the first class. The burden of those which remain should be lightened in so far as possible and should be justly distributed among the responsible parties.

The achievement of industrial safety through prevention of accidents, while not a new idea, has been the subject of active endeavor only during the last decade; in fact, with the greater part of our industrial population, safety work is a development of the last two or three years. In the past, lack of accurate knowledge, currency of individualistic ideals, and generally wasteful methods of production have precluded attention to the problem. Industrial accidents have been regarded as an unfortunate but not particularly important incident *of modern production. Now, with the growth of the conservation idea, the development of a knowledge of consequences through statistical studies, and direct financial pressure on employers through laws compelling the payment of compensation to workmen, we find rapidly increasing and effective interest in the subject.

Agencies of Accident Prevention. — The State should be the primary force in the prevention of accidents since it represents all classes and is in a position to exercise compulsion. That our governments have been far behind Europe in safety activity has been due largely to ignorance of the possibilities of such work and to absence of the demand for it because of our less highly concentrated population. One of the first examples of state interference in the cause of safety is the Safety Appliance Law passed by the Federal Government in 1893, aimed specifically at accidents due to the dangerous methods of coupling cars then in vogue on interstate railroads. This law has since been considerably extended to cover a wider range of railroad work. The individual states have passed, from time to time, laws for the elimination of specific unsafe practices and for the general improvement of conditions in dangerous trades, but their enforcement has usually been lax and productive of little good.

As a result, however, of steadily growing interest during the last six or seven years legislatures, backed by public demand, are enacting more effective statutes, in some cases independent of a Workmen's Compensation Act, but more often supplementary thereto. The most important feature of these later enactments has been the creation of expert commissions for the collection of information and the enforcement of the law. These commissions are usually empowered to make inspections and require the installation of safety devices, and make annual reports of the progress of their work. More significant still is the educational work which they are carrying on through the publication of pamphlets, the promulgation of safety standards, public exhibitions and lectures, safety museums and libraries, and conferences with individual employers.

The latest development of the governmental program is the adoption of safety as a subject of instruction in the public schools. New Jersey passed a law in 1913 requiring courses to be installed and other states are becoming interested in this branch of the work. Capably administered, this should be an effective method of reducing accidents. Its idea is to make accident prevention a part of the every-day consciousness of the population and the accomplishment of this end is of fundamental importance.

Employers, after years of ignorance and apathy, are fast becoming awakened to the humanitarian and financial gains arising from accident prevention and are expending an immense amount of thought and money to decrease the accident hazard in their plants. The United States Steel Corporation was a pioneer in safety work and has developed its organization and methods to a very high pitch of efficiency. Leading corporations in other lines have also made great advances in the direction of industrial safety and it is only a question of time before every corporation of any size will recognize accident prevention as one of the most important phases of its activity. Manufacturers of machinery are responding to the demand, and dangerous machines are now carrying guards as regular equipment. 1 The manufacture of safety devices is becoming an independent industry and inventors are constantly working on new ideas for more efficient protection.

One of the greatest aids to the employer in the solution of safety problems is the insurance company. These companies, on the payment of a stipulated premium, assume the liability of the employer to pay damages or compensation to his employees on account of accidents, and one of their chief inducements is the offer of expert advice on safety work whereby the employer may not only reduce his accidents but may also secure substantial reductions in the rate of premium. Competition in this service has developed inspection departments which are of very real economic value. In addition to personal inspection and advice, pamphlets dealing with safety are published, warning signs are furnished, and some companies issue small volumes which are practically text-books of accident prevention.

Two cooperative enterprises for improving safety conditions merit especial mention : the American Museum of Safety and the National Safety Council, These organizations are supported by membership fees and contributions of industrial corporations and public-minded associations and individuals.

1 One industrial corporation makes a practice, whenever a machine comes to them insufficiently protected, of adding the necessary guards and deducting the cost from the bill for the machine.

The American Museum of Safety, in New York City, is a clearing-house and exhibition place for safety methods and appliances and is modeled after the great safety museums of Germany and other European countries. Safety devices and models have been collected and are displayed for the inspection of anyone interested. A library is also maintained and educational work is carried on through illustrated lectures and the distribution of pamphlets. 2

The National Safety Council, with headquarters in Chicago, is the parent organization of large numbers of local councils located in the principal cities. Its chief features are weekly bulletins of statistics and safety illustrations, an information bureau for members, and annual Safety Congresses. These congresses attract safety experts from every industry and the papers and informal discussions are of great value.

Thus far the function of the workman in the prevention of accidents has not been mentioned, though he is an all-important factor in the success of any plan for the promotion of industrial safety. The work of employers and the state can be made effective only through his intelligent and active cooperation and hence all safety organizations are built around the fundamental idea of awakening the interest of the employee in his own welfare. Initiative and administration must come from the employing class, but the greater part of the reduction in accident rates is due directly to the care and efforts of the workers.

Methods of Accident Prevention. — The develop-

2 Massachusetts and California have Museums of Safety maintained by the State.

ment of efficient methods for the prevention of accidents must rest on an accurate knowledge of causes. Hence a prerequisite to the establishment of a safety organization and the installation of preventive appliances is a careful study of causes and their relative significance. For example, Illinois statistics show that "falling objects" were responsible for 19 per cent of the accidents occurring during the six months ending December 31, 191 3, and that, in each class of industry, the number attributable to this cause far exceeded that due to any other. These facts would indicate the necessity of giving primary emphasis to the prevention of such accidents and would probably warrant the expenditure of a relatively large amount of attention and money for that purpose. A further study might show that these accidents give rise to comparatively short periods of disability and that another less numerous class results in greater total loss. In that case the emphasis would be shifted. This is but a suggestion of the need for careful scientific consideration of every element of the problem as a basis for effective work.

The simplest method of protecting workmen is the use of mechanical guards to prevent falls and contact with dangerous machinery and to catch flying particles, and tools or materials which may have been dropped. Familiar examples are covers for gears and belting, railings on elevated runways, wire screens before metal chipping machines and strips of metal or wood on the edges of scaffolding. Machines are often redesigned to render their operation safer; devices for stopping machinery are applied and the parts are made more accessible for cleaning and oiling. Arrangements are also made to prevent setting machinery in motion while men are engaged in repair work, and methods of lighting are used which give the employee the clearest possible view of his work. Warning signs, designed with a view to compelling attention, are used to remind the employee of the presence of danger. Besides signs to guard specific danger zones, large placards and electric signs are placed in prominent positions to keep the idea of "safety first" constantly in the mind of the employee. 3