of which is likely to lead only to extravagance and future want. The present popularity of life insurance policies payable in installments is significant of the appreciation of such tendencies even among the economically more fortunate classes.

The various specific injury schedules which have been adopted seem to be more the product of imitation than of reason, being based in several states on somewhat similar provisions in accident insurance policies. As a measure of economic loss they are thoroughly inadequate and it is only necessary to point out that the loss of a particular member has a vastly different economic significance in various occupations to show that such schedules are essentially unjust. Contrast, for example, the effect of the loss of a left hand on a bookkeeper and the effect of the same loss on a chauffeur. Such injuries should be compensated on the basis of the proportion of disability which they cause.

Lastly, the limits now imposed on medical and surgical aid should be removed and provision made for such care as is reasonably necessary in each case. These limits are now often removed in practice by insurance companies and employers who realize that proper treatment of injured men effects immense economy in the payment of other benefits. For broader but similar reasons the law should require adequate treatment. This, as well as other liberalizing changes, require efficient administration to guard against abuse.

The Computation of Compensation.-Having fixed upon average weekly wages as a basis for the computation of compensation payments, the next step is to provide a method for ascertaining the average wages

in any given case. The Massachusetts act has a typical provision:

“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' time during such period, then the earnings for the remainder of such twelve calendar months shall be divided by the number of weeks remaining after the time so lost has been deducted. Where, by reason of the shortness of the time during which the employee has been in the employment of his employer, or the nature or terms of the employment, it is impracticable to compute the average weekly wages, as above defined, regard may be had to the average weekly amount which, during the twelve months previous to the injury, was being earned by a person in the same grade employed at the same work by the same employer; or, if there is no person so employed, by a person in the same grade employed in the same class of employment and in the same district.21

A later addition to the act provides that "if it be established that the injured employee was of such age and experience when injured that, under natural conditions, his wages would be expected to increase, that fact may be taken into consideration in determining his weekly wages." 22

In other states a more extended definition is frequently given and specific forms of income are excluded from the computation; for example, money ad

vanced for expenses incidental to employment, payment for overtime, board and lodging and gratuities unless the money value is fixed in the contract of hire. Occasionally the limits to weekly compensation are expressed in terms of maximum and minimum wages which may be used in computation.

The Industrial Commission of Wisconsin has published a table which shows the compensation payable for total disability under the Wisconsin act, with wages at various levels.23 The method of construction. may be shown by taking a two-dollar wage as an example:

No set rule can be applied in all cases—it is necessary to leave considerable latitude of action to the administrative body in order to deal equitably with exceptional conditions.

23 Bulletin No. 12 of the Department of Labor and Industries of Minnesota contains extensive tables showing death and disability benefits payable in that state.

CHAPTER XI

WORKMEN'S COMPENSATION LEGISLATION IN THE UNITED STATES AND TERRITORIES (Continued)

ADMINISTRATION

The definition of administration as "legislation in action" indicates the necessity of especially careful consideration of the administrative provisions of a compensation act. In order that the ends for which the act is designed may be achieved administrative machinery is necessary, for, having secured legislative expression of compensation principles, it is essential that the law be enforced. Practical operation determines its success or failure. To this end the states have adopted various means, some creating new administrative bodies, others relying on existing mechanism.

Administrative Commissions.-Twenty-four states, one territory, and the United States, have adopted the commission form of administration by creating bodies which give exclusive attention to the operation of the compensation law. These bodies have various titles: Industrial Accident Board, Workmen's Compensation Commission, Industrial Insurance Commission, etc.,

1 Commons and Andrews, "Principles of Labor Legislation." Chap. IX of this book is an excellent treatment of the general problems of administration.

but the purposes of all are the same. In its usual form the commission consists of three or five members with their headquarters at the state capitol. Certain variations from the ordinary plan are worthy of notice; in Iowa and West Virginia the administrative function is vested in a single commissioner, in Connecticut and Kentucky the individual members of the commission are assigned to districts, and in California and Pennsylvania the commission is assisted by referees.

The primary purpose is to put into effect the provisions in the law for compensation payments and to see that justice is done to all parties concerned. But there are certain secondary purposes for which a commission is created and for which it is peculiarly adapted. These are the observation of the operation of the law, the compilation of statistics, and the rendering of reports. Legislation, to be scientific, must be based on experience and, if experience is to be of any service, it must be carefully compiled and properly interpreted and the results placed before the law-making body. When the first compensation laws were enacted in the United States there were only foreign experience and the scattering and inadequate information of a few state labor departments as a guide. Hence the laws contain many unavoidable defects which could be appreciated only after the acts had been in operation for some time. By a process of amendment these defects may be eliminated but accurate and apposite information is needed on which to base corrections. Such information is best supplied by competent experts who are in constant and sympathetic touch with developments, such as those who