minister's committee were approved by the Emperor on January 17 (30), 1905; and the first draft of the complete law for all three branches of workmen's insurance was made public on March 29 (April 11), 1905.

This new draft did not change the essential provisions of the compensation act of 1903 or extend its scope, but simply applied the principle of obligatory mutual insurance and corrected a few of the defects of the existing system. It also excepted all cases during the first 6 weeks of sickness, which were to be transferred to the sick benefit associations to be organized in connection with sickness insurance. Each employer subject to the law of 1903 was to join either an industrial or a territorial association of employers; in exceptional cases of isolated establishments exceptions might be granted, and in such cases the old rules of 1903 remained in force unchanged.

DRAFT OF 1906.

The character and extent of the Compensation Law of 1903 was not affected by the plan of 1905. But within the last three or four years the need of introducing radical changes in the compensation law was widely discussed. In April, 1906, an interdepartmental conference, increased by invited representatives of commercial organizations and economic science, with the minister of commerce and industry, elaborated a new draft of an accident insurance law. This draft of 1906 represented in the main a combination of the law of 1903 and the plan for the organization of the territorial insurance associations of 1905. But there were important modifications. The exception of accidents due to gross negligence from the application of the law was abolished, only accidents due to the malicious intent of the injured being excepted. Other changes suggested are: The increase of the compensation for temporary disability from one-half the daily earnings to two-thirds; but with it a transfer of the care of all cases during the first six weeks from the accident insurance associations to the sickness insurance societies, the organization of which was contemplated; the increase of the number of annual working days to be used in computing annual earnings from 260, as in the law of 1903, to 280.

BILL OF THE CONSTITUTIONAL DEMOCRATIC PARTY.

In the first Duma, which was in session during the summer of 1906, many labor bills were introduced. The bill referring to workmen's accident insurance was based upon somewhat broader principles than the draft of the Ministry of Commerce and Industry of 1906. Proceeding from the existing law of 1903, the plan embodied the fo!lowing general principles: The extension of the law to all employees

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in industry, transportation, agriculture, and building; an increase of the pensions to the surviving children from one-sixth of the wages, as in the law of 1903, to one-fifth, and when orphans to one-fourth, the total limit of pensions remaining the same, namely, two-thirds of the wages; the raising of the age limit of children entitled to compensation from 15 to 17 years; the establishment of arbitration courts. with representatives of capital and labor; and a system of obligatory insurance, with the privilege of choice between insurance in a mutual employers' association, a central government insurance office, or a private authorized insurance company.

DRAFT OF 1907.

The governmental consideration of an accident insurance system continued in December, 1906, and February, 1907. Another official draft was published in February, 1907. The draft of 1907 did not accept the suggestions as to the increase of the allowance for temporary disability from one-half to two-thirds the daily wages, nor as to the increase of the age limit of the children from 15 to 17 years; but the number of annual working days was increased from 260 to 280 days, the qualification of gross negligence was eliminated, and perhaps the most important change was the inclusion of railroads, steamship, and street railway companies; the draft is also more comprehensive than the law of 1903 as to the size of the manufacturing or mining establishments covered, including all establishments using mechanical or animal power or, when not using such power, employing not less than 10 wage-earners.

In the matter of organization of obligatory insurance, the draft of 1907 adheres to the Austrian models embodied in the draft of 1905; it requires the establishment of territorial employers' organizations and provides for industrial employers' organizations in exceptional cases by special permission of the central authorities.

BILL OF 1908.

After more than three years of deliberation a draft of the bill was agreed upon by the Government and introduced into the Duma on June 25 (July 8), 1908, together with many other labor bills.

The bill of June 25, 1908, preserves the Austrian form of territorial mutual insurance associations; but the organization of industrial insurance associations in exceptional cases may be permitted by the central insurance council to be established in connection with the whole insurance system. Government establishments are excepted from obligation of insurance, also establishments owned by the "Zemstvos" (provincial organs of self-government) and by municipalities. Isolated establishments may also be relieved from the

obligation by the insurance council. In the financial arrangements the Austrian system is also followed, and the capitalized value of the claims annually arising must be met by assessments for that year. The insurance associations must therefore establish a reserve and a surplus fund. The reserve contains the capitalized value of the obligations, and the surplus formed from the profits, etc., is to be used to meet unexpected losses. The funds are to be invested in government bonds or other securities guaranteed by the State, such as municipal land bank bonds and similar securities on a list authorized by the Government, and must be deposited with the state bank or subtreasuries. By special authorization of the insurance council they may also be invested in real estate, in construction of hospitals and invalid homes, or in loans to members for construction of cheap dwellings, schools, hospitals, or similar institutions for the benefit of the employees.

The insurance associations are to be self-governing institutions under the supervision of the central workmen's insurance council. The constitution is to be prepared by representatives of industrial establishments. The constitution may be revised by the insurance council and must be approved by the minister of commerce and industry before it goes into effect. In case of failure of the association to prepare the draft of such constitution, the council may prepare one and present it to the minister for approval. The administration of the affairs of each association must be lodged in the board of directors and the general meetings of the members or their delegates, also an auditing committee and other select committees. The general meeting must prepare the scale of contributions of individual members, with consideration of comparative hazard, and present it to the insurance council for approval of the minister of commerce and industry. In case of failure to prepare such a scale, or if the scale presented is not approved, the council may enforce one established according to its judgment. The contribution levied by the mutual associations must be paid promptly, and the association is empowered to levy fines for delay, and may collect the amounts due through the police. Such fines must be determined by the general meeting. The insurance associations, in the general meeting, may also establish rules and regulations for prevention of accidents, provided they do not conflict with existing legislation, and enforce them upon the members by means of fines up to 300 rubles ($154.50). It may establish premiums for saving of lives and for invention of safety appliances and devices.

In so far as the organization of these mutual employers' insurance organizations are concerned, this bill does not differ in its principles from the drafts of 1905 or 1907. But the essential difference lies in

the absence of any provision for special insurance courts with representatives of employers and employees, which courts were promised in the draft of 1905 and which many students of labor insurance in Russia think essential to the proper working of the law.

Many more or less important modifications of the law of 1903 are introduced in this bill. The primary purpose is the establishment of a system of compulsory insurance. On the other hand, many rules of 1903, which the draft of 1907 have been retained.

showed a desire to amend,

An important amendment of the law, suggested in the draft of 1908, is the exclusion of all reference to negligence, only self-inflicted injuries barring the victim or his dependents from the right to compensation. On the other hand, the application of the law is considerably restricted as compared with the draft of 1907, or, in some respects, even the law of 1903. The bill includes manufacturing, mining and metallurgical, steamship, railroad, and street railroad establishments, and thus seems to have covered the main branches of transportation service; but as not only government establishments but also privately owned public railroads are specifically excepted, this leaves only the small private industrial railroads, while the bill of 1907 included all railroad employees. Again, only those establishments are included which employ steam or other mechanical power and at least 20 employees permanently, or 30 employees when no mechanical power is used. This establishes a much narrower restriction than the draft of 1907, which had a minimum of 10 employees only, and no minimum of the number of employees at all where either mechanical or animal power is used.

The allowance for temporary disability is increased to two-thirds of the wages, as proposed in 1906, and against one-half granted by the law of 1903; but the payments of these allowances by the accident insurance associations is to begin after 13 weeks, as against 6 weeks according to the draft of 1905. Thus an increased burden is placed upon the proposed sick benefit funds, to which the employees contribute an equal amount with the employers, and only for the working days is such allowance granted. However, when the injured is not a member of any sick benefit fund he is entitled to the compensation from the day of the injury. The cost of medical treatment must be paid by the accident insurance fund when it is not furnished by the sick benefit fund.

The annual number of working days is reduced from 280, as suggested by the draft of 1907, to 260 days. There is no minimum pension for complete disability, but the annual earnings computed as above must not be lower for an adult than 260 times the standard wages of unskilled labor in the district. A full pension of 100 per cent is granted in case of complete helplessness, which is defined in the

text to include only cases of insanity, total blindness, and loss of both hands or both feet.

These are the important modifications proposed in the rules of compensation as established by the law of 1903, the bill following quite closely the law in regard to other compensation.

The substitution of the employers' association for the individual employers' responsibility has necessitated a complete change in the method of procedure. The essential point of the change is the complete elimination of the factory or mine inspector, who fulfills so important a function in the administration of the law of 1903. Notice of accident must be given to the police and to the insurance association, which may impose a fine for failure to give such notice. The association may send its agent to investigate the conditions of the accident, a function at present entrusted to the factory inspector. Both the claimant and the association may select their physicians, but the injured must allow himself to be examined by the association's physician, and on refusal to do so may be deprived of the entire compensation or part of it. Claims are to be made directly to the insurance association, which must render a decision within one month. Dissent from this decision must be lodged by the claimant within two months, after which the insurance association must reconsider the claim within one month. In case of further dissent with the decision, the case may be carried to court within 2 months. When the difference refers to the amount of compensation, the claimant may accept the amount offered without prejudicing his right to sue. And when a claim, rejected by the association, is allowed by the courts, or the amount granted is increased, all payments overdue must be paid up with interest computed at 6 per cent annually. The bill endeavors to discourage premature suing in courts by providing that in going to court before first making a claim directly to the insurance association, or before the expiration of the terms established by the bill, the claimant loses the right to receive court expenses and court fees.

Thus the procedure is simplified. Criticism has been passed upon this procedure because, while eliminating the factory or mine inspector, it substitutes no one to guard the interests of the workman. It seems to be assumed that in, dealing with the insurance association the claimant has less need of such protection than when dealing with an individual employer, but the wage-workers are not represented in the insurance association. The plan for special insurance arbitration courts, included in the draft of 1905 to diminish tedious. litigation, has been omitted in the draft of 1908.