haps the most important change was the reduction of the share of the employer, from an amount equal to the contributions of the employees to one-half that amount, thus considerably limiting the income of the funds.

Thus, while each sick fund was to have the right to extend to the members of the family of the employees the cost of treatment, sick benefits, maternity benefits, or funeral expenses, the opportunity for such extended activity was evidently considerably reduced. Even the possibility was foreseen that with this reduction the maximum dues permitted (3 per cent of the earnings) might not be sufficient to meet the expenses of minimum benefits, and in such cases the employers were made responsible for the deficit.

PROPOSAL OF 1908.

The workmen's sickness insurance bill, which was introduced in the Duma January 25 (February 7), 1908, was much more elaborate than its predecessors. Organization and administration were more carefully worked out in this bill, representing for the time being the final conclusions of the Government. It contained many changes in the plan, though the basic principles remained intact. The bill covered the question of medical aid, but its organization was kept apart, as explained in the section dealing with that problem.

The bill is an essential part of the comprehensive system of labor insurance planned by the Government. It is not limited to manufactures and mining, but also includes railroads, inland navigation, and street railroad establishments. It is limited to establishments which employ steam or other mechanical power and at least 20 permanent wage-earners, or 30 permanent wage-earners where no mechanical power is used. This provision is expected to solve the question as to what establishment is a factory or mill. Small shops may be so advantageously located that a union with existing funds would present no difficulties; it is therefore provided that the labor insurance council may, upon recommendation of the local labor insurance commissions, extend the application of the law to establishments using mechanical power and employing not less than 5 wage-workers. Under special conditions the council may temporarily except certain small and isolated establishments from the operations of this law until these conditions have changed. Establishments of a temporary nature may be relieved by the local commission from the obligations imposed by this law; and appeals against such acts are brought to the central council, whose decision is final. This provision in regard to temporary enterprises was thought necessary because of the difficulties connected with a temporary organization of a sick benefit fund. When such changes take place in the nature of an establishment as to take it out of the class to which the bill applies, the obli

gation of insurance ceases. All establishments owned by zemstvos and municipalities are excepted, for many such public institutions have already established systems of sick relief.

In the establishments covered by the law all permanent employees receiving less than 1,500 rubles ($773) per annum (including the value of board and lodging), whether employed as workmen or in the offices, are subject to the insurance system. Temporary employees hired for less than two weeks are excepted. The maximum limitation of salary is taken from the law of 1903 and is identical with that in the accident insurance. Under special regulations, persons receiving more than that remuneration may voluntarily come under the insurance system.

According to this bill insurance against sickness must be by means of sick benefit associations. Establishments with 400 permanent employees or over have their individual sick benefit associations, and only in exceptional cases may the organization of independent associations be authorized by the local labor insurance commission in establishments with a smaller number of employees. Smaller establishments must unite for the organization of such association, or join existing associations.

The organization of joint associations must have the approval of the proprietors of the several establishments, as well as of the local labor insurance commissions. For the admission of a new establishment into an existing association, or the union of several existing associations into one, the agreement of these associations must also be obtained. Such agreements and approvals are necessary in view of the differences in the rates of accidents and sickness. This provision is limited by the clause authorizing the local labor insurance commission to order such unions on its own initiative, and thus the final decision of all such questions is practically taken out of the hands of the employees, who are the main contributors to the associations, and left entirely in the hands of the authorities. The membership of the employee in the association begins with the day of entering service and ends either with the expiration of such service or with change in the conditions. Voluntary members of the associations may resign at any time, provided they have held membership for at least one year.

The associations must have their own constitutions, but this right is subject to limitations. The right to prepare the constitution is left to the employer (the owner of the establishment). The employees are not permitted to have any voice in the matter. In addition, the central labor insurance council is directed to prepare a normal (standard) constitution and while the adoption of this constitution is not to be obligatory, its use is to be encouraged. The application for a permit to organize an association is made by the owner of the establishment 67725°-VOL 2-11-48

to the factory inspector, and if the use of the standard constitution is agreed to the inspector grants this permit. If a new constitution or any modification of the normal constitution is desired, the approval of the local labor insurance commission must be first obtained. If the employer does not make such an application within the time specified by the commission the latter may order the organization of the institution under the standard constitution.

The constitution must state the name of the association, place, list of establishments, method of election and functions of the board of directors, the organization, functions, and procedure of the general meetings, the revenues, their investments, etc., the expenditures, bookkeeping and accounting, the methods of amending the constitution, methods of liquidating the association if necessary, and care of books and documents during temporary suspension of the association. These details of the constitution must conform to the limitations established in the law.

The associations are permitted to enter into agreements with the employers to assume for a definite consideration the duty of furnishing medical help, and for this purpose they may establish hospitals and dispensaries and also enter into agreements with zemstvos and municipalities or private institutions for treatment of the sick.

The payment of benefits is the main function of the associations; this includes sick benefits, maternity benefits, and funeral expenses. Sick benefits are paid in all cases of sickness lasting over three days, except when sickness is self-afflicted with malicious intent or caused by fights or criminal acts. The exception of sickness lasting three days or less is expected to relieve the associations of minor cases which are not serious enough to cause financial distress to the wage-earners, or which may be due to malingery or debauchery, and which would prove to be a heavy burden for the association. The amounts of the sick benefits are left to the associations, but must fall within the following limits: For married persons with dependent families, from one-half to two-thirds the daily wage, and for persons without dependent families (whether single or married), from one-fourth to one-half of the daily wage.

These sick benefits are paid for not over twenty-six weeks in any one case of sickness, and not over thirty weeks to one person within the same year.

Those members of these associations who are at the same time. insured against accidents (according to the new accident-insurance bill) and are disabled in consequence of an industrial accident, are 'entitled to benefits from the day of the accident not to exceed 13 weeks. This obligation does not rest upon the sick benefit association when the injured person is not insured against accidents, but is covered by the law of June 2 (15), 1903, which entitles the injured person to receive

such benefits directly from the employer. If the injured person is neither insured against accident nor covered by the old law of 1903, he is entitled to receive his benefits from the associations on the same conditions as any other sick member.

The extension of the length of care supplied by the sickness association to the injured person from 6 to 13 weeks is the most important modification suggested in the last draft. It must be remembered that of all accidents, according to the statistical data for 1904, only 4 per cent required treatment for over 13 weeks, while 85 per cent required treatment for 6 weeks or less, so that an additional burden of 11 per cent of the accidents is thrown upon the sick insurance associations. The actual additional burden must be measured by a somewhat different method. Out of a total of 1,135,491 sick days for which treatment was granted in 1904, the accidents requiring treatment for not over 6 weeks claimed 550,695 days, or 48 per cent. To this must be added the first 6 weeks of treatment for all other cases, which amounted to 276,948 days, the total being 827,643, or 73 per cent. The treatment of cases lasting over 6 weeks but not over 13 weeks would impose an additional duty of 271,994 days, or 24 per cent, or about one-third of that of handling the cases lasting under 6 weeks.

Maternity benefits paid by the associations must be from one-half to two-thirds of the daily earnings. They are to be paid for four weeks from the day of confinement, and are paid only when the woman has belonged to some sick insurance association for three months previous to childbirth. To enforce the hygienic advantage of these maternity benefits, the associations are permitted to withhold them from women who return to hired labor before the expiration of four weeks.

The funeral expenses paid by the sick benefit associations must equal twenty to thirty times the daily earnings of the deceased. To simplify and accelerate the payment of such expenses in cases of death from accidents, the sick benefit associations make such payments, but as this obligation rests upon the accident insurance associations, the latter reimburse the sick benefit associations.

In all these benefits the payments are computed on the same basis of daily earnings as their contributions. The actual rates of benefits within the limits established by the law are determined by the association, in general meeting, for a year in advance. A few additional limitations are permitted to the association. Thus single members may be deprived of benefits altogether or receive smaller amounts than the legal minimum when they are being treated in a hospital at the expense either of the association or of any other third party; benefits may begin before the fourth day of sickness; they may be paid for holidays; a certain length of membership not exceeding two weeks may be required before the right to receive benefits is acquired (in

case of voluntary members no benefits must be paid within the first week of membership); members who do not comply with the rules of the associations or who disobey the physician's order may be deprived of their benefits, wholly or in part, and may be fined not to exceed 3 rubles ($1.55) for each offense.

In addition to these obligatory benefits the associations may extend their activity to the members of the workmen's families. Any or all of the benefit features may be extended, as sickness, death, or childbirth in the workman's family often seriously affects his economic status. The amounts of such additional benefits must be definitely stated in the constitution of the association, and in no case must the expenditure for such additional benefits exceed onethird of the expenditure for the required benefits.

The revenues of the funds are to be derived from the same sources as in all the preceding plans of sickness insurance; primarily they consist of periodic contributions from the employees and employers, to which are added the following minor sources of revenue: Income from property and investments, voluntary contributions, fines and penalties imposed in accordance with the laws by the establishments and by the sick benefit funds, and miscellaneous revenues. Of these secondary sources the fines and penalties of the establishments are the most important ones, but these are decreasing.

The actual rate of the employees' contributions are determined by the association in general meeting, but must not be less than 1 nor more than 2 per cent of the earnings. Associations with less than 400 members may increase the rate to 3 per cent. While the maximum yearly salary of persons required to join the association is 1,500 rubles ($773), or over 5 rubles ($2.57) per day, for the purposes of computing the contribution as well as the benefits the maximum earnings are put at 2 rubles ($1.03) per day. The contribution of the employer is two-thirds that of the employees.

The above limits of the contributions of the employees and employers were established upon calculations based upon German sickness statistics, no such material for Russia being available. According to these data there are about 36 cases of sickness per 100 employees, and the average duration of each case of sickness is 40 days. This gives 1,440 days of sickness for 100 employees, or 14.4 days per employee. Taking the average number of working days to be 280, one-twentieth of it seems to be lost because of sickness. With a sick benefit varying from one-fourth to two-thirds of the wages, the cost of the benefits equals from 1 to 3 per cent of the wages. As the employee contributes three-fifths and the employer two-fifths of the charges (disregarding the minor sources of revenue), the employee's contribution must be from three-fourths of 1 per cent to 2 per cent,