GENERAL ADMINISTRATION.

The administrative head of the accident insurance as well as of the sickness insurance is the minister of the interior, who is intrusted with the enforcement of the laws and with issuing the decrees authorized by the laws. Connected with the Ministry of the Interior is the insurance council, whose functions are advisory rather than executive. Under the minister of the interior, the organizations known as insurance institutions (Versicherungsanstalten) perform the actual work of accident insurance.

INSURANCE COUNCIL.

The insurance council (Versicherungsbeirat) is a committee of experts attached to the Ministry of the Interior to furnish that department with technical advice on matters relating to sickness and accident insurance when so directed by the minister. It is necessary to have the opinion of the insurance council on questions of (1) determining or changing the territory of the insurance institutions, as well as combining or dividing the institutions; (2) before issuing the orders regarding the model constitution for insurance institutions; (3) before issuing the orders regarding the division of establishments into risk classes and the determination of the risk ratings of these; (4) before drawing on the reserve funds for any purpose; (5) before determining the tariff of contributions for the first year; (6) before directing an increase or a decrease in the tariff rates of an insurance institution; (7) before approving the creation of a mutual insurance institution. The council consists of not fewer than 12 nor more than 20 members, appointed by the minister of the interior from among persons conversant with the following fields: (a) Industry, (b) agriculture and forestry, (c) technology of industry, (d) insurance technique. The term of office is three years, and members may be reappointed. The minister is authorized to appoint at least one alternate for each of the classes of persons just mentioned, such alternates to be residents of Vienna. The minister of commerce and the minister of agriculture are to be consulted in regard to the appointment of members conversant with industry and with agriculture; the minister of commerce and the minister of education are to be consulted regarding the appointment of the members conversant with the technology of industry. Membership in the council is honorary and carries no salary, though for nonresidents of Vienna actual traveling expenses and a per diem allowance of 20 crowns ($4.06) is provided.

The minister of the interior is authorized to appoint experts as temporary members, but such temporary members have no vote.

INSURANCE INSTITUTIONS.

The machinery for administering the insurance in Austria is organized on geographical lines, with special treatment of the various industries on the basis of their trade risk. The law requires that an association known as an insurance institution (Versicherungsanstalt) shall be organized by the employers, workmen, and administrative officials of the establishments covered by the law and that such an association shall be organized for each of the principal geographical divisions of the country. In compliance with this provision, seven of these territorial institutions have been created. An exception to this rule is that contained in article 58 of the law which provides that, with the approval of the minister of the interior, a number of establishments engaged in a particular industry may create a separate insurance institution of their own, regardless of the territorial limits. Up to the present time only one such organization has been formed, that of the Austrian railways. Furthermore, establishments having an insurance institution of their own, which make provision at least equal to that specified in the law, in which the contributions of the employer are not less than that required by the law, and which offer sufficient security for the payment of claims are not required to enter the territorial insurance institutions. Thus far, only three such special institutions() have received the approval of the minister of the interior, but their operations have not been considered of sufficient importance to be included in the official statistics.

In accordance with the law, the following institutions have been created:

1. The institution for Lower Austria, headquarters in Vienna. 2. The institution for Upper Austria, Salzburg, Tyrol, and Vorarlberg, headquarters in Salzburg.

3. The institution for Bohemia, headquarters in Prague.

4. The institution for Moravia and Silesia, headquarters in Brünn. 5. The institution for Styria and Carinthia, headquarters in Gratz. 6. The institution for Coastland, Carniola, and Dalmatia, headquarters in Trieste.

7. The institution for Galicia and Bukowina, headquarters in Lemberg.

8. The institution of the Austrian railways, headquarters in Vienna. The territorial insurance institutions are governed by a board of directors (Vorstand), the membership of which consists one-third of employers, one-third of employees, and one-third of persons familiar with the economic conditions of the territory included within the scope of the insurance institution. The last named are appointed by • Sociale Verwaltung in Österreich, Volume I, Die Arbeiter-Unfallversicherung, p. 7.

the minister of the interior. The actions of the board of directors are subject to the approval of the minister of the interior, who is authorized to dissolve the board and arrange for the installation of a new board.

The principal duties of this board are (1) to establish a schedule of contributions to the insurance institution; (2) to decide which establishments are included within the scope of the law, and as to the risk class and risk rate of each establishment, the latter having the right of appeal to certain officials and eventually to the minister of the interior; (3) to determine the rates of compensation under the law; (4) to administer the property of the institution and decide upon its investment.

The board of directors selects from its members an executive committee to conduct the current business of the institution and to act as its executive head.

The organization of the insurance institutions is of great interest, and for this reason the constitution-or the model which has to be followed-is given here in full. This model constitution was prepared by the minister of the interior and is required to be adopted by each institution, unless the variations requested by the latter are approved by the minister. As prescribed by the Ministry of the Interior in its decree of January 24, 1889, the model constitution is as follows:

MODEL CONSTITUTION FOR AN INSURANCE INSTITUTION. (a)

ARTICLE 1. By authority of article 9 of the law of December 28, 1887, and of the ministerial decree of January 22, 1889, an institution is established for the district of .., known as the "Workmen's Accident Insurance Institution of.......," with headquarters at

ART. 2. The object of this insurance institution is to insure, on the mutual plan, its members who are workmen and administrative officials, in accordance with the provisions of the accident insurance law, against the results of accidents received in the course of their employment.

ART. 3. The members of the institution are (a) the undertakers of the establishments included in the insurance and located in the territory of the institution, and (b) the workmen and administrative officials of the same; also the undertakers, workmen, and administrative officials of those establishments which are made subject to the insurance by the minister of the interior in accordance with article 3, paragraph 2, of the law.

The undertakers, workmen, and administrative officials of the following establishments are exempted from membership: Those establishments for which there is an institution as specified in article 57 of the accident insurance law; those establishments for which a special institution has been created in accordance with article 58 of the accident insurance law; those establishments which, in accordance with article 3, paragraph 1, of the accident insurance law, have been excluded from the insurance by the minister of the interior.

ART. 4. The undertakers of establishments are required, within the time specified by the minister of the interior, to make a report to the institution on each existing establishment subject to the insurance, and to report within 14 days on each new establishment founded after that date; this report must state the products of the establishment, the kind of establishment, the number of persons employed who are subject to the insurance, and the amount of the annual earnings of these persons as computed under the insurance law (art. 6, pars. 5, 6, and 7).

a Decree of the Ministry of the Interior of January 24, 1889.

The date of beginning of operations of the newly founded establishments is also to be given in the report.

If an establishment is not conducted by the undertaker himself, but by a representative or manager, this fact is to be stated in the report.

This report is to be made on the prescribed schedule, in duplicate, and is to be forwarded to the institution through the lower public authorities of the Government.(a). After the receipt of such a report or upon the notification of the lower public authorities the board of directors of the institution decides, subject to the right of appeal of the undertaker, whether the establishment is included within the insurance, and if so, in what risk class and risk rate of this class the establishment is to be placed.

The undertaker is to be notified of the decision and of the inclusion in the institution and supplied with the tariff.

ART. 5. A register (Kataster) is to be kept of all the establishments belonging to the institute, such register to show the risk classes and risk rates in which the establishments are classified. Each undertaker whose establishment is on the register is to receive a membership certificate in the form specified in the supplement hereto. The lower public authorities, as well as the factory inspectors of the district covered by the institution, are to be supplied with an extract from the register containing a list of the establishments covered by the insurance and located in their respective districts.

The same persons are to be immediately notified by the insurance institution of any change taking place.

ART. 6. The undertaker of the establishment is required to notify the insurance institution within eight days of any change in the product or in the method of operation of the establishment which would be of influence in regard to its inclusion under the law, in regard to its rating in the risk class or its risk rates. The institution has then to decide whether, as a result of these changes, the establishment has ceased to be included under the law or is to be placed in another risk class or is to be placed under a different risk rate in the risk class.

If, after one of the decisions referred to in articles 18 and 19 of the accident insurance law has been rendered, facts which would be of influence in the classification or rating of an establishment included in the insurance, come to the knowledge of the insurance institution, the latter, after consultation with the undertaker, is author

State?...

a SCHEDULE FOR AN ESTABLISHMENT INCLUDED IN THE INSURANCE.

(2) Number of motors?......

(3) Horsepower?.....

(4) Number of persons attending the motors or exposed to the risk arising therefrom?...... (b) Mechanically driven machinery?.

(1) Description of the machines?.

(2) Number of persons employed at the machines?......

(c) Are explosives manufactured or used?......

(1) If so, what kind?......

(2) How many workmen are subject to the risk of explosions?..

(d) How many workmen are exposed to special risks of scalds, burns, falls from ladders. stairs, scaffolding, etc., or to some special risk and not included under (a) to (c), with description of such special risk?......

(e) Number of workmen engaged in hand work and casual work?......

(f) Number of administrative officials?....

(g) Number of workmen engaged in transportation and storehouse work?.

9. Situation of the rooms in which motors are placed, with reference to the other workrooms?.............. 10. Circumstances which reduce the accident risk, and safety appliances?......

11. Remarks:......

ized to decide that the establishment from the date of such decision is to be placed in another risk class or in another risk rating of this class.

The provisions of article 18, paragraphs 3, 4, and 5, of the law are to be applied in decisions of this kind.

ART. 7. If the undertaker of an establishment changes, the new undertaker must notify the institution of this fact within 14 days. A new certificate of membership is then to be made out, and the certificate of the former member is to be returned. If an establishment included within the insurance shuts down, the undertaker of the establishment (see article 11 of the law) must notify the insurance institution of the fact within 8 days. At the same time that this notice is given the insurance contribution for the period between the last regular payment and the date of closing of the establishment must be paid to the institution, the payment being accompanied by a copy of the computation.

If the notices specified in articles 4, 6, and 7 of this constitution are not made within the proper time, or if they contain untrue statements, then the penalties prescribed in the accident insurance law, articles 25, 51, and 52, are to be imposed. ART. 8. Membership ceases: (a) For the undertaker (1) if the establishment is transferred to another undertaker; (2) if the establishment ceases to be included in the insurance or is entirely shut down; (3) if the establishment is joined to one of the insurance institutions formed under article 58 of the insurance law.

(b) For workmen and administrative officials, if they cease to be employed in one of the establishments covered by the insurance law and belonging to the institution. ART. 9. The members of the institution have (1) the right to participate in the administration of the institution in accordance with the provisions of this constitution; (2) the right to elect and to be elected members of the arbitration court.

In case workmen or administrative officials who are members of the institution are injured or killed through accident during employment, they or their heirs have a right to the compensation specified in articles 6 and 7 of the accident insurance law. The undertakers who are members of the institution are required (1) to furnish all the notices, computations, and information called for by the insurance law and the constitution, in the form prescribed by this constitution or by special regulations; (2) to pay to the institution the insurance contributions at the time prescribed.

The workmen and administrative officials who are members of the institution are required to pay to the undertaker the insurance contributions which form their share of the expense.

ART. 10. Upon the board of directors rests the transaction of all the business of the institution and the representation thereof.

The board consists of eighteen members.

Six members, as well as six alternates, are elected by the undertakers of the establishments from their number; six members, as well as six alternates, are elected by the insured persons from their number; finally, six members are chosen by the minister of the interior.

ART. 11. The election of the members of the board of directors and the alternates by the undertakers of the establishments, and by the insured workmen and administrative officials, is conducted by means of election lists which are to be filled out as prescribed by articles 14 and 15 of this constitution.

The first election is carried out by an election committee consisting of the six members appointed to the board of directors by the minister of the interior. The board of directors selects the election committee for later elections (see article 19 of this constitution).

ART. 12. For the purpose of the election to the board of directors all of the establishments included in the insurance are divided into six categories of related or closely resembling classes of establishments, as follows:

1. Agricultural and forestry establishments and flour mills.

2. Railroads, mining and smelting works, metal working, machinery, tools, etc.

3. Chemical industry, heating and lighting materials, foods and drinks.

4. Stones and clays and building trades.

5. Textile industries, clothing, and cleaning.

6. Paper and leather, wood and carved materials, printing and publishing.

Each of these categories elects one representative of the employers and one representative of the workmen as well as the corresponding alternates.

ART. 13. Each undertaker who is a member of the institution has the right to participate in the election in accordance with the following provisions and has the right to be elected to the board of directors.

If a manager or representative is at the head of an establishment as provided in article 4 of this constitution, then he has the right to elect and to be elected.