REPORT OF THE COMMISSIONER OF INSURANCE.


153


maintaining their manufacturing institutions outside of the
compensation laws, to prolong the settlements, until the mini-
mum amount is reached. It is recognized that each state ha.s
its own peculiar problems and the Exchange endeavors to aid-
just the claims, satisfactorily upon the basis of the employers
wishes. If the common law defences for accidents are available
to the employer, they ordinarily take advantage of them and a
suit is ordinarily the result of almost every accident. On the
other hand, if the state has a, compensation law the employers
seem  to desire quick settlements in order to avoid bringing
claims to suit. In all cases we find that the Exchange was
adapting itself to the varying conditions manifested in the
states, and it seemed to be giving considerable satisfaction to its
subscribers.
BOOKS AND RECORDS
The books and records of the company are well kept for state-
ment purposes. Individual accounts were kept with each sub-
scriber in the individual ledger and the results, were carried
to a controlling ledger.  The practice of keeping the funds
several instead of joint was carried out in every particular.
EXPENSE FEATURES
While the expense features are quite large, still it will also
be noted that the savings to the subscribers for the amount of
premiums paid is also large. The settlement of claims is
a very large item of expenditure and there can be no question
but what this should be reduced.
CLOSING REMARKS
While this Exchange is not old, still it has made considerable
progress. Its assets are in a liquid form and its surplus over
and above all liabilities, forms, a sufficient safeguard against
the underestimation of unpaid claims. In fact we believe that
the Exchange is upon a firm financial basis and its affairs are
being conducted in accordance with the ideas which the orig-
inators had in view, of reducing the cost of liability insurance
to its members.