the conclusion that it is not wise to recommend that they be required to do so. In reaching this conclusion we have had in mind that employers may, to some extent, add the amount of such payments to the cost of production, which, of course, could not be done by employes except by demanding an increase of wages to that amount. Finally, we think that the physical injury and suffering of the employe is quite sufficient to constitute his proportion of this industrial burden.

In creating an Industrial Accident Board which will assume complete control of all controversies which may arise in connection with the administration of these funds, we have also followed the example of other states. The method of arbitration provided is simple and summary. The committee of arbitration is created to consist of three members, one of whom shall be a member of the Industrial Accident Board, Board, who shall act as the chairman, and the others are appointed respectively by the parties in dispute. They are required to meet at the place where the accident occurred, and to conduct a thorough investigation and hearing, and to file their findings with the Industrial Accident Board. Either party may within seven days demand a review by the Industrial Accident Board, which shall thereupon examine the records of the committee of arbitration, together with such other evidence as the parties may desire to submit, and make a final decision. The findings of fact of the Board acting within its powers and in good faith shall be final as to such matters, but the Supreme Court may review questions of law involved in such decisions or rulings of the board, and give such directions as justice may require.

This plan is similar to that adopted in Massachusetts and differs from the Wisconsin law only in that the latter permits review by the circuit court of questions of law involved in the rulings of such board, and then an appeal to the supreme court. We have deemed, however, that the shorter course is the best, because it is of the utmost importance that the injured workman (or in case of death, his dependents) should receive the compensation accruing to them under this act as promptly and with as little expense and difficulty as shall be reasonably possible.

It may be that the task imposed upon this board in requiring one member thereof to act as the chairman of the committee of arbitration created to determine every dispute, will prove greater than it will be able to perform, on account of the number of controversies. If so, the board can be relieved by amending the law so as to provide for the appointment of one or more expert examiners, who may act in the same capacity on such committee of arbitration as a member of the Industrial Accident Board under the law as here proposed. We think, however, it is highly desirable that the members of the Industrial Accident Board should, at least to begin with, be brought in close personal contact with both employers and employes, and deal at short range with the controversies which will necessarily arise under this law. Notwithstanding the care with which any law of this character may be drafted, it is foredoomed to failure unless efficiently administered by a board in sympathy with its purposes and who are, or may become, thoroughly familiar with the economic conditions to which it applies.

As the operation of this law upon both employer and employe rests

necessarily upon their assent, express or implied, it may be said that the election of either to come within its terms amounts to the acceptance by them of the methods provided for enforcing collection of compensation, as well as the compensation itself, and that such acceptance will constitute a waiver of any other method of enforcing liability, including trial by jury. Furthermore, since such election on the part of the employer and of the employe removes any such controversy from the scope of the common law, it may be said that as to them the common law right of action, with all its incidents, including the right of trial by jury, has been effectually disposed of.

We cannot hope that this proposed law will prove satisfactory to all. We have, however, in the preparation of it, drawn widely from the experience of other states, as well as from the statistics and information which we have collected, and we present it for consideration in the firm belief that it represents to the full extent of present experience a broad and comprehensive plan for the adjustment of such controversies between employers and employes.

A BILL

To promote the general health and welfare of the people of this State, relating to the liability of employers for injuries or death sustained by their employes, providing compensation for the accidental injury to or death of employes and methods for the payment of the same, including the incorporation of mutual associations to insure the payments of such compensation, establishing an Industrial Accident Board, defining its powers, providing for a review of its awards, making an appropriation to carry out the provisions of this act, and restricting the right to compensation or damages in such cases, to such as are provided by this act.

The People of the State of Michigan enact:

PART I.

MODIFICATION OF REMEDIES.

SECTION 1. In an action to recover damages for personal injury sustained by an employe in the course of his employment, or for death resulting from personal injury so sustained, it shall not be a defence:

(a) That the employe was negligent unless and except it shall appear that such negligence was wilful;

(b) That the injury was caused by the negligence of a fellow employe;

(c) That the employe had assumed the risks inherent in or incidental to, or arising out of his employment, or arising from the failure of the employer to provide and maintain safe premises and suitable appliances.

SEC. 2. The provisions of Section 1 shall not apply to actions to recover damages for personal injuries sustained by household domestic servants and farm laborers.

SEC. 3. The provisions of Section 1 shall not apply to actions to recover damages for the death of, or for personal injuries sustained by employes of any employer who has elected, with the approval of the Industrial Accident Board hereinafter created, to pay compensation in the manner and to the extent hereinafter provided.

SEC. 4. Any employer who has elected, with the approval of the Industrial Accident Board hereinafter created, to pay compensation as hereinafter provided, shall not be subject to the provisions of Section 1; nor shall such employer be subject to any other liability whatsoever, save as herein provided, for the death of or personal injury to any employe, for which death or injury compensation is recoverable under this act, except as to employes who have elected in the manner hereinafter provided not to become subject to the provisions of this act. SEC. 5. The following shall constitute employers subject to the provisions of this act:

1. The State and each county, city, township, incorporated village and school district therein.

2. Every person, firm and private corporation (including any public service corporation) who has any person in service under any contract of hire, express or implied, oral or written, and who, at or prior to the time of the accident to the employe for which compensation under this act may be claimed, shall in the manner provided in the next section, have elected to become subject to the provisions of this act, and who shall not, prior to such accident, have effected a withdrawal of such election, in the manner provided in the next section.

SEC. 6. Such election on the part of the employers mentioned in subdivision two of the preceding section, shall be made by filing with the Industrial Accident Board hereinafter provided for, a written statement to the effect that such employer accepts the provisions of this act, and that he adopts, subject to the approval of said Board, one of the four methods provided for the payment of the compensation hereinafter specified. The filing of such statement and the approval of said Board shall operate, within the meaning of the preceding section, to subject such employer to the provisions of this act and all acts amendatory thereof for the term of one year from the date of the filing of such statement, and thereafter, without further act on his part, for successive terms of one year each, unless such employer shall, at least thirty days prior to the expiration of such first or any succeeding year, file in the office of said Board a notice in writing to the effect that he desires to withdraw his election to be subject to the provisions of this act: Provided, however, That such employer so electing to become subject to the provisions of this act shall within ten days after the approval by said Board of his election filed as aforesaid, post in a conspicuous place in his plant, shop, mine or place of work, or if such employer be a transportation company, at its several stations and docks, notice in the form as prescribed and furnished by the Industrial Accident Board to the effect that he accepts and will be bound by the provisions of this act.

SEC. 7. The term "employe" as used in this act shall be construed to mean:

1. Every person in the service of the State, or of any county, city, township, incorporated village or school district therein, under any appointment, or contract of hire, express or implied, oral or written, except any official of the State, or of any county, city, township, incorporated village or school district therein, provided that one, employed by a contractor, who has contracted with a county, city, township, incorporated village, school district or the State, through its representatives, shall not be considered an employe of the State, county, city, township, incorporated village or school district which made the contract.

2. Every person in the service of another under any contract of hire, express or implied, oral or written, including aliens, and also including minors who are legally permitted to work under the laws of the State (who, for the purposes of this act, shall be considered the same and have the same power to contract as adult employes), but not including any person whose employment is but casual or is not

in the usual course of the trade, business, profession, or occupation of his employer.

SEC. 8. Any employe as defined in subdivision one of the preceding section shall be subject to the provisions of this act and of any act amendatory thereof. Any employe as defined in subdivision two of the preceding section shall be deemed to have accepted and shall be subject to the provisions of this act and of any act amendatory thereof if, at the time of the accident upon which liability is claimed:

1. The employer charged with such liability is subject to the provisions of this act, whether the employe has actual notice thereof or not; and

2. Such employe shall not, at the time of entering into his contract of hire, express or implied, with such employer, have given to his employer notice in writing that he elects not to be subject to the provisions of this act; or, in the event that such contract of hire was made before such employer became subject to the provisions of this act, such employe shall have given to his employer notice in writing that he elects not to be subject to such provisions, or without giving either of such notices shall have remained in the service of such employer for thirty days after the employer has filed with said Board an election to be subject to the terms of this act. An employe who has given notice to his employer in writing as aforesaid that he elects not to be subject to the provisions of this act, may waive such claim by a notice in writing, which shall take effect five days after it is delivered to the employer or his agent.

PART II.

COMPENSATION.

SEC. 1. If an employe who has not given notice of his election not to be subject to the provisions of this act, as provided in Part 1, Section 8, or who has given such notice and has waived the same as hereinbefore provided, receives a personal injury arising out of and in the course of his employment by an employer who is at the time of such injury subject to the provisions of this act, he shall be paid compensation in the manner and to the extent hereinafter provided, or in case of his death resulting from such injuries such compensation shall be paid to his dependents as hereinafter defined.

SEC. 2. If the employe is injured by reason of his serious and wilful misconduct, he shall not receive compensation under the provisions of this act.

SEC. 3. No compensation shall be paid under this act for any injury which does not incapacitate the employe for a period of at least two weeks from earning full wages, but if incapacity extends beyond the period of two weeks, compensation shall begin on the 15th day after the injury: Provided, however, That if such disability continues for eight weeks or longer, such compensation shall be computed from the date of the injury.

SEC. 4. During the first three weeks after the injury the employer