definite and easy to determine; the conditions under which exemption from compulsory insurance could be made were extended; the "waiting time" for cases of temporary disability was reduced from 52 to 26 weeks; the invalidity institutes were given greater authority in regard to providing medical treatment for the insured persons, and caring for invalids in institutions instead of providing pensions was made one of the benefits; the "waiting time" necessary to establish the right to a pension or to a return of contributions was shortened; the period of convalescence following the sickness, as well as a normal case of childbirth, were allowed to be classed as sickness; a fifth wage class was created for insured persons whose annual earnings exceeded 1,150 marks ($273.70); the right to a pension in case of delay on the part of the claimant, as well as the right to pay contributions overdue, were restricted; the procedure for obtaining return of contributions was simplified and the conditions under which a claim for return of contributions by the survivors of the female insured persons were made easier; the number of contributions necessary to establish a claim to a pension was reduced; in the case of simultaneous right to a pension, both on account of accident and on account of invalidity, the highest amount which could be claimed was increased; the claims of the poor-law authorities against a pensioner were made more definite and their claim against a pension was restricted (in favor of the pensioner) to only a part of the pension; the organization was made simpler by the elimination of the advisory council (Aufsichtsrath), of the state commissioner (Staatskommissar), and of the district agents (Vertrauensmaenner), while the authority of the general committee was extended; the officials of the invalidity institutes were granted the status of state officials; the officials of the arbitration courts and of the local offices were to be considered officials of the invalidity institutes; the arbitration courts were to consist of five instead of three members; the competency of the arbitration courts was to be specified by law; stamps covering longer periods of time are permitted to be used, while the invalidity institutes could make use of summary (or cumulative) cards containing the information on the receipt cards; more liberty was allowed in regard to voluntary insurance, which applied to all of the wage classes, while, on the other hand, restrictions were imposed on the payment of contributions overdue; in controversies regarding the payment and the amount of payments of contributions the invalidity institutes were to be given the right of expressing their views, while the officials deciding the question must follow the general principles laid down by the imperial insurance office; the investment of the capital of the invalidity institutes was permitted to a larger degree than heretofore, to be made in institutions for the welfare of workmen and more particularly in the form of workmen's dwellings.

The provisions relating to the proof required of the workmen subject to the insurance that they have been employed during the legal period were made simpler, and under certain circumstances such proof was not required.

The question of making the classes of persons subject to the workmen's insurance system identical under the invalidity law and under the sickness law has been a question of much discussion. Approximately 11,500,000 persons are insured under the invalidity law and 8,500,000 under the sickness insurance law. Previous to the year 1900 workers in agriculture were excluded from the sickness insurance law for the reason that it was considered unwise to place any additional burdens on the agricultural industries; since 1900, however, the new civil code requires employers engaged in agriculture and forestry to make provision for sick and disabled employees. As the statistics of sickness show that the average duration of a case of sickness is approximately 17 days, the burden on the agricultural industries under the new civil code would be approximately the same as under the sickness insurance law.

Against the proposal to introduce national compulsory sickness insurance for the agricultural workers, it was stated that the communes and other local governments covering larger areas already had the right to extend the insurance to this class of workers and, as a matter of fact, in a great number of cases such extension has actually been made. Since the agricultural workers were already cared for to what the Government regarded as a reasonable degree the proposal was finally voted down.

During the discussion efforts were made to extend the invalidity insurance so as to include provision for widows and orphans. In the discussion of the law during the sessions of 1898 and 1899 it was claimed that this feature would greatly add to the popularity of the invalidity law, and in the opinion of the persons asking for this measure it was claimed that this feature was the only one lacking to completely round out the system. The results of this demand for the insurance of widows and orphans have since received more favorable consideration and are stated in connection with the proposed laws given on page 1399 and following pages.

During the discussion it was proposed to grant the invalidity insurance institutes the right to issue health regulations and regulations to prevent the development of special diseases either for special branches of industry or for specific organizations. At one time this measure proved popular enough to be included in the bill, but during the second reading the proposal was eliminated, the main reason being that already the Federal Council, the state governments, the police officials, the accident associations, the guilds, and the factory inspectors had the right to issue health regulations of

various kinds and that adding another series of such regulations would be both burdensome and unnecessary.

PERSONS INSURED.

COMPULSORY INSURANCE.

Persons who have completed their sixteenth year of age, who are employed (1) as workmen, helpers of all kinds, clerks, journeymen, apprentices, domestic servants for wages or other hire, regardless of the amount of such compensation, in industry (including the home-working industries), agriculture, commerce, transportation, the handicrafts, or in offices of the Imperial Government, and of the state and local governments, or in offices connected with the practice of the learned professions; (2) as administrative officials, technical officials (including engineers, architects, chemists, etc.), commercial employees, such as salesmen, traveling agents, bookkeepers, etc., apprentices (but not including assistants and apprentices of pharmacists), other persons holding positions which constitute their principal occupation (such as governesses, superintendents of charitable and other institutions, etc.), instructors, teachers and tutors (but not including independent teachers, such as dancing teachers, swimming instructors, etc.), provided that their salary or usual earnings do not exceed 2,000 marks ($476) per annum; (3) persons employed for wages or other compensation as members of the crews of German vessels and of vessels engaged in inland navigation, or employed as officers on such vessels, provided that their usual wage or salary does not exceed 2,000 marks ($476) per annum.

The preceding classes of persons are those compulsorily insured by the law; in addition to these the federal council (the upper house of the imperial legislature) is authorized to extend the compulsory insurance to certain occupations generally or to certain districts only, to (1) persons carrying on trades or persons owning establishments in which no employees are engaged, and (2) to such persons conducting establishments in the home-working industries (regardless of the number of employees) in which manufacturing or other work is done for the account of a third party. The federal council has not extended the insurance to any occupations as described under (1) above, but has included some of the workers in the domestic industries; these are (1) persons engaged in the manufacture of cigars, or other tobacco products; (2) persons engaged in the greater part of the textile industries operated under the domestic system.

The persons subject to the invalidity and old-age insurance are practically all the gainfully employed population of the Empire over 16 years of age, male, female, married, single, foreign and native, who hold positions in German establishments and who are not

specifically exempted from the insurance. The number of independent persons, or persons not having an employer, is naturally small and is practically limited to those in the domestic and home working industries. Independent persons, such as employers, may under certain conditions voluntarily insure themselves.

The law specifically exempts from the insurance (1) persons whose compensation consists of maintenance only, such as frequently occurs in the case of apprentices, elderly persons, etc.; (2) officials of the Empire, state or local governments, as well as teachers in public schools or institutions whose service is simply a preparation for a future position, or who are entitled to a pension under another law, provided that the latter pension is not less than the highest pension provided by the imperial invalidity and old-age insurance law; (3) officials of the compulsory invalidity and old-age insurance institutions, who have a claim for a pension; (4) persons who give instruction during the period of their own educational training; (5) employees of the military establishments who are engaged in industrial operations (military artisans, etc.); (6) persons in receipt of an invalidity pension; (7) persons who on account of permanent disability or of old age are unable to earn one-third of the amount usually earned by normal persons of their ability and physical powers. Persons under restraint, such as inmates of prisons, reformatories, almshouses, etc., are likewise excluded from the insurance.

Certain persons may be exempted from the insurance on their own application, which must be made to the political officials of the locality where they are employed, but an official notice directs these officials to urge the makers of such applications for exemption to do so only under exceptional circumstances. The persons who may be so exempted are: (1) persons who are in receipt of a pension or similar benefit from the Empire, a State, or a commune, or who receive a teacher's pension, provided that such pension is equal to the minimum pension of the compulsory invalidity insurance system; (2) persons who are in receipt of an annual pension under the accident-insurance laws, provided that such pension is likewise equal to the minimum invalidity pension; (3) persons who have attained the age of 70 years; (4) persons who engage in wage work at certain seasons only, or who do such work for not more than 12 weeks or for not more than 50 days altogether in the year and who otherwise are engaged in independent work or work not done for wages or salary-e. g., farmers who work as lumbermen at certain seasons, but the right to make application for exemption is lost if 100 regular weekly insurance contributions have been paid for such independent persons. The persons in the four groups just mentioned. do not lose their right to voluntary insurance by making application for exemption.

VOLUNTARY INSURANCE.

The following persons who are over 16 years of age and less than 40 years of age, may voluntarily become insured under the provisions of the invalidity and old-age insurance law: (1) Administrative officials, foremen, technical officials, employees in commercial establishments (excepting apprentices) and other persons holding positions which constitute their principal occupation, also teachers and instructors, as well as ships' officers; the persons just mentioned may not be included unless their annual earnings are more than 2,000 marks ($476) and not exceeding 3,000 marks ($714); (2) regardless of the amount of their income persons engaged in business on their own account, and other heads of establishments, who do not regularly employ more than two wage-workers who are subject to the compulsory insurance, as well as persons engaged in the domestic or home-working industries, provided that the federal council has not extended the compulsory feature of the insurance to them; (3) persons whose only compensation for their work is free maintenance or persons who have been exempt from the compulsory insurance because of the temporary nature of their employment. The persons mentioned in the three preceding groups are authorized to continue the voluntary insurance in case they cease to be employed under the conditions just described.

In case of voluntary insurance, benefits for invalidity are granted only after the insured person has paid 100 weekly contributions.

In addition to the persons classed in the three groups above, any person who has been subject to the compulsory insurance, after he has ceased to be employed under conditions obligating insurance, may voluntarily continue the insurance, or he may renew the insurance if he has severed his connection with the insurance institute. Such continuance of the insurance is not dependent on any age limit or on any occupation or industry; the applicant must not, however, be permanently disabled or at the time of application must not have been ill within a period of 26 weeks prior to the date of application.

In no case is a renewal of the insurance permitted if the person has once been insured and withdrawn his insurance contributions; only a new insurance is allowed in such cases.

KIND OF DISABILITY INSURED.

In the description of the system of benefits in force, it was stated that benefits are provided for three types of disability: (1) Invalidity or permanent disability; (2) sickness or temporary disability; (3) old age, regardless of any disability affecting the insured person's earning power.