been a gradual transferring of the risks of other industries to the Fund
of a very desirable character, and for several years the State Accident
Fund has been the largest writer of compensation insurance, from a
point of premiums written, in Maryland.

In carrying out the idea of the General Assembly when it created
the State Accident Fund.that the Fund should endeavor to write busi-
ness at cost and also to keep this cost as low a a possible.it would
appear that this purpose has been accomplished. The expense ratio of
the private companies carrying this form of insurance is estimated by
their rating bureaus as approximately 42% of the premiums written,
while the expense ratio covering all operations of the Fund has always
been materially lower than this and has been averaging from 8 to 12%
of the premiums written. During that year the interest earned on the
investments of the Fund paid the entire operating cost of the Fund.

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 policyholder to take a greater interest in
accident prevention in his plant.

There is no doubt that the State Accident Fund has saved to the
employers insuring with the Fund many thousands of dollars, and at
the same time giving them full protection under the Workmen's Com-
pensation Law of Maryland.

THE COMMISSIONER OF LABOR
AND STATISTICS

Office, 16 West Saratoga Street, Baltimore
Name. Postoffice.
Commissioner.
Dr. J. Knox Insley . . . Baltimore

(Term Expires 1933.)
Chief Clerk:
Kathryne P. Rogers . Anneslie

Medical Examiners:

Dr. Wright S. Sudler Baltimore
Dr. Henry Sheppard, Jr. . . . Baltimore

Examining Physician and Psychiatrist:

Dr. Edward A. Kitlowski .. . Baltimore
Statistician •
A. Louise Murphy .. .. Baltimore