of Governor Herbert R. O'Conor 313

Expenditures have been closely watched and budget amendments have been
reduced to a minimum, which undoubtedly has had an important bearing on the
substantial reversions of appropriations to the General Treasury at the end of
the last fiscal year.

During the next two years, it is planned not only to continue inquiries into
the workings of all State Agencies, but also to study their relationship to other
State activities and their place in the general governmental structure. It is
believed the department has justified itself both in the accumulation of large
amounts of detailed information respecting the operation of State Agencies and
in the economies in administration which have been effected.

State Insurance Department—Under the capable leadership of Mr. John
B. Gontrum, the Insurance Department has set an enviable record of accomplish-
ment during this administration. As of December 12, 1939, there were 2, 457, -
000 policies in force in Maryland Life Insurance Companies, representing $761, -
010, 153. 61 of insurance in force, the reserves upon which aggregated $77, 280, -
644. 64. The Statutes provide that every policy of life, accident, health and
hospitalization insurance must be examined and approved by the department
before any such policy may be issued in this State. The number of policies,
supplemental contracts, riders and endorsements requiring such approval, ap-
proximates five thousand in number each year. Not the least of this depart-
ment's accomplishments has been the creation of an insurance clinic to advise
policy holders.

To December 1, 1940, there were approximately 3, 000 fires reported to the
department as having occurred in the counties of the State, entailing aggregate
total losses paid of approximately $1, 500, 000. 00.

At the request of the Department of Public Welfare the department is
making inspections of all institutions licensed for the care of aged and children.
The Fire Marshal's Department has been active in investigating fires of suspi-
cious origin. Up to December 1st, 1940, the Arson investigators checked
seventy-one fires of suspicious origin. They inspected 120 schools, hospitals,
homes, etc. Twenty-six orders of condemnation proceedings of buildings in
dangerous condition were inaugurated. Educational films were shown to ap-
proximately 70, 000 persons, and twelve hearings were held on fire investigations
and evidence submitted to the State's Attorney for grand jury action.

A State-wide safety code has been prepared and much constructive work
along the lines of fire prevention has been accomplished.

The annual statements of fifty-three domestic companies were audited and
those of 563 foreign and alien companies inspected.

State Tax Commission—The function of this department is to approve
certificates of corporations and amendments thereto, to collect recording fees,
to assess tangible personal property of certain business corporations, and the
stock of others; the franchise taxes of Maryland and foreign corporations and
the gross receipts taxes of certain public service corporations; and to dissolve
or revive Maryland corporations. In addition, the Commission has general
supervision of the administration of the assessment and tax laws of the State
and of each county and city within the State.

By the Acts of 1937 and 1939, the duty was imposed on the Commission
to hear appeals on the income tax cases and by the Acts of 1939, it became the