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SETTLEMENT FOR ACCIDENTS TO AMERICAN SEAMEN

extent at least, by wise and intelligent handling of the information constantly
passing through the office of every shipowner. It is in the form of reports of
accidents, damage, and loss, also the payment of many claims.
Complete information covering accidents and claims will not only enable the
shipowners to reduce the number of accidents and claims, and thereby save
through a reduction in the total amount paid for claims, insurance premiums, or
assessments under compensation laws, but will place them in a position to deal
successfully and intelligently with proposed legislation, whether favorable or
adverse.

In view of the lack of data the Bureau of Labor Statistics undertook
a study to determine the actual status of seamen with regard to
injuries and recovery therefor. Its study covered three points:
(1) The physical injury, (2) the compensation received therefor
through personal settlement or court action, and (3) an estimate of
the compensation which would have been payable if the injured
seamen had been covered by compensation legislation similar to that
enacted by Congress in 1927 for longshoremen and harbor workers.
Accident rates and insurance rates were not included in the study.
Data were completed for 1,195 cases, of which 899 were direct settlements
 and 296 involved legal representatives for the seamen and the
consequent payment of legal fees.
It was found that the average settlement in the 899 cases not
involving legal fees was $262.47 per case as compared with the average
estimated settlement of $352.56 under the adaptation of the provisions
of the longshoremen’s and harbor workers’ compensation act employed
in this study.
In the 296 cases involving legai fees the amount of the settlement
included the amount paid by the seaman as legal fees. Such information
 as could be obtained indicated that the cases were taken by the
attorney on a contingent fee. This was stipulated as one-half or
more than one-half of the amount recovered in 87 per cent of the
62 cases in which the fee was learned. The average of the gross
amounts paid by the insurance or shipping company in the 296
cases was $1,317.03 per case. Assuming that the legal fees in these
cases were as low as 40 per cent of the settlement, the average net
amount received by the seaman would have been $790.22 as compared
 with the average estimated settlement of $821.07 under the
assumed conditions of this study.
Scope of Study

The bureau’s study covered all claims settled in the 1926 business
year by the more important shipping companies and marine underwriters
 in the New York City area, for which the bureau was sable
to obtain sufficient information concerning disability and settlement
to make a comparison with the provisions of the longshoremen’s
compensation act. The 1,195 cases shown are representative of
settlements consummated in one year forinjury to all classes of American
 seamen (except those on the Great Lakes), even though some
of the injuries occurred one, two, or even five years prior to settlement.
The initial information obtained from the company records of
claims closed was supplemented by data gathered from other sources.
No data were collected as to the number of ships operating, the number
 of seamen employed, or the number of accidents occurring to
seamen. Further, the bureau made no attempt to determine how
often injuries result in a claim, or how many injuries there were for