MARYLAND MANUAL.

to formulate reasonable rules and regulations for the establishment
and maintenance of safety, having in mind the prevention of and re-
duction in accidents in occupations governed by the provisions of the
Workmen's Compensation Law. Shortly after the adoption of this
amendment the Commission organized a Safety Department for the
purpose of carrying on this work, which department is administered
by the Commission.

Since the passage of the Workmen's Compensation Law in 1914
there have been numerous amendments passed by the General Assem-
bly. These amendments had in view the purpose of adapting the law
to conditions as they now exist. Some of the more important changes
were made in 1931 on the recommendations of a committee appointed
by the Governor for that purpose, and were concurred in by represen-
tatives of employees, employers and insurance carriers.

The jurisdiction of the State Industrial Accident Commission is
continuing. Many petitions for reopening or rehearing, after final
settlement of claims, are presented, requiring long record of medical
and other testimony, many resulting in appeals. This greatly in-
creases the work and expense of the department from year to year.

When the General Assembly of Maryland in 1914 passed the Work-
men's Compensation Act, they recognized the fact that employers
might be put in the position where they would not be able to comply
with the Act, due to the fact that the private insurance companies
would refuse to carry their risk. Furthermore, they felt that inasmuch
as this form of insurance was compulsory under the State Law, that
they shold provide a place where the insurance could be secured at
practically the cost of writing this form of insurance. They, therefore,
created the State Accident Fund to be administered by the State Indus-
trial Accident Commission. This Fund has grown gradually and has
become the largest writer of Compensation Insurance of Maryland
business in the State and is in a strong financial condition, affording
sure and ample protection under the Workmen's Compensation Law
of Maryland. Due to the fact that the Fund is endeavoring to furnish
this protection at as near cost as possible, it has saved a great deal
of money for those who have insured through it.

Effective March 1, 1926, the Commission inaugurated a new merit-
rating system, the purpose of which is to reward and stimulate the
policyholders of the Fund in their work of accident prevention and to
measure the rate more closely to the individual hazard of the policy-
holder, preserving to the policyholder, of course, the basic principles of
insurance protection, so that any severe losses will still be distributed.
This merit-rating system is working out very satisfactorily, and is
offering an incentive to the policy holder to take a greater interest in
accident prevention in his plant.

The expense of operating the State Industrial Accident Commission
is not a burden upon the taxpayers of the State as the entire expense
of the Commission, not including the State Accident Fund, is borne by
the private insurance companies which write Compensation Insurance,
self-insurers, and the State Accident Fund, while the cost of operating
the State Accident Fund is borne by the policyholders insuring in the
Fund.