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That a distinction be made with reference to awards to parents dependent for thier support upon the earnings of children under the age of twenty-one years, that is with reference to parents wholly, or partially dependent. That compensation be awardable to all children of a deceased employee, under the age of fifteen years, and that in defining "dependents, there be included" an invalid brother or sister wholly dependent for his or her support upon the earnings of the employee at the time of the injury causing death.

ELEVENTH-Section 37. That the last clause of this section as it is written at present, be eliminated, as we are of the opinion that the average weekly wage of an injured employee be determined on the basis of his average weekly earnings in the industry or business in which he is employed at the time of injury.

TWELFTH-Section 39. That provision be made in this section whereby the commissioner may in his discretion accept an application filed by an injured employee after six months from the date of his injury, where it is shown that such failure is due to the employers failure to report such injury; also that Consular Officers be permitted to represent non-resident alien dependents, but that they not be permitted to amake application for compensation in behalf of such non-resident alien dependents.

THIRTEENTH-Section 42. That the assignment of compensation be prohibited, as from our experience it is to the detriment of injured employees, and particularly to their dependents.

FOURTEENTH-Section 43. That the findings of fact made by the commissioner acting within his power, shall in the absence of fraud be conclusive, and that the Supreme Court of Appeals have power only to review questions of law involved in any final action or determination of the commissioner.

FIFTEENTH-Section 54. That this Section be repealed, making the fund an exclusively State controlled fund.

That other Sections where necessary proper changes be made that they may not conflict with the act as a whole.

Respectfully submitted,

LEE OTT,

State Compensation Commissioner.

PREFACE

During the year ended June 30, 1918, three thousand and seventy-six (3,076) employers, with 180,834 employees, full time basis, paid premiums into the State Fund on total wages of $186,155,363.97, the average premium rate being $1.42 per hundred dollars of wages, the earned premium being $2,635,673.13.

There were reported to the State Fund 23,557 personal injuries, of which 531 were fatal, 10 permanent total, 296 permanent partial and 22,720 temporary disabilities.

The estimated cost of accidents, present value basis, during the year to the State Fund aggregated $2,232,138.62, being $1.20 per hundred dollars of wages, and 85 percent of the premium income, distributed as follows:

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The Fund shows a surplus of $165,649.95, in addition to a Reserve for Losses of $3,921,076.77, a Catastrophe Reserve of $234,484.09, and Reserve for Future Administrative Expense of $59,804.61, the total Surplus and Reserve being $4,381,015.42.

The investments were increased during the year $1,762,750.00, the total investments being $3,796,750.00, leaving $794,335.25 cash in the hands of the State Treasurer.

The Administrative Expense during the year was $78,960.54, being three per centum of the premium income, without deduction for payments into the fund of $8,255.44 by employers carrying their own risk, for their proportion of the Administrative Expense, which, if deducted, would leave the net expense $70,705.10, or 2.68 percentum of the premium income.

There were two catastrophes during the year, both in Class A-1 (Coal Mining), the estimated cost being $48,825.CO or four cents per hundred dollars of wages reported in this class, as compared with the revised cost of 79 cents in 1914, 46 cents in 1915, 12 cents in 1916, and 4 cents in 1917.

The deficit in Class A-1 (Coal Mining) which on June 30th, 1915, was $794,976.97 has been reduced to $141,959.57. The premiums paid by employers in this class during the year amounted to $2,008,598.16, the average premium rate having been $1.84 per hundred dollars on wages of $108,926,499.11, while the losses were $1,660,455.65, or $1.52 per hundred dollars of wages, and 83 per cent of the premium income. The premium rates in this class ranged from $1.00 to $4.00 per hundred dollars of wages, on the records of the individual en ployers for the twelve months ended March 31st, 1917, in accordance with the merit rating provision of Section 18 of the Act.

Twenty-nine classes, other than A-1 (Coal Mining) showed ir del tecress to the fund aggregating $79,166.44, while seventy-three classes showed credit lalarces aggregating $365,074.75. Adjustments in merit rates nace July 1st, 191

together with interest adjustments annually between classes, should result in improved balances and equitable rates as to classes and individual employers. Merit rates were applied during the past year to employers in all classes except schedules L and M.

Twenty-five employers, 11,727 employees, full time basis, carried their own risk, the wages of their employees being $13,243,302.22, paying into the fund $8,255.44 as their proportion of the administrative expense, being 5 percentum of the premium they would have paid into the State Fund, at manual rates, of $163,867.58.

The following statement shows by schedules the number of employers paying premiums into the fund during the year, and the average number of employees reported, full time basis:

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THE FOLLOWING SHOWS IN SUMMARY OR THE RESULTS OF THE PRINCIPAL FEATURES OF ADMINISTRATION FOR EACH YEAR

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