Papers - Health and Safety in Mines - Economic Aspects of Silicosis (Abstract).

There is a dearth of information on the economic threat of silicosis. Even the insurance companies and rating bureaus are in a quandary, and the majority of them avoid any action that will stir up an awakened public consciousness of the serious nature of this industrial hazard. Individual claims for $100,000 are now common in silicosis lawsuits. Because of ('hidden costs," in lowered plant efficiency, the total cost of this disease to industry is probably four times its apparent direct cost. The direct costs vary with the labor policies of the employer and with the labor legislation in force. Direct costs may originate in three ways: (1) voluntary assumption by the employer of medical expenses and loss of earning power of stricken employees; (2) state enforcement of industrial disease compensation acts; and (3) awards or settlements after suits in common law. Examples are offered in the last two classifications. In the Rand, South Africa, compensation laws are in effect and in approximately 20 years prior to 1932 about $65,000,000 has been awarded for silicosis and an additional liability of $34,000,000 incurred, or an average of about t5,000,000 per year. During 1932 silicosis compensation on the Rand was about $6,000,000. No figures are available for the direct capital or operating costs for preventive measures there, nor for the additional "hidden costs." It might be reasonable to assume that silicosis has cost the gold-mining industry of South Africa twenty to twenty-five millions of dollars per year. It is estimated that common-law silicosis claims have, in the last few years, aggregated $50,000,000 in New York State alone and have exceeded $300,000,000 in the United States. Attention is called to the involved nature of the insurance situation for industrial diseases in contrast to accidents. The indeterminant, insidious nature of silicosis makes it particularly difficult to predict necessary insurance premiums and reserves. The serious hazard of this disease was not properly appreciated by either insurance companies or industrialists, so sufficient study has not been given its causation, prevention, detection, treatment, and compensation. Therefore legal difficul-