It should be noted, however, that in the case of the companies belonging to the Accident Offices Association (which includes almost all the big Accident Insurance Companies) the proportion of income to be allocated to payment of compensation is now subject to the operation of the formal arrangement which was negotiated in 1923 between the Home Office and the Accident Offices Association for the purpose of limiting the charges to employers in respect of employers' liability insurance.* The general effect of this arrangement, which came into operation in 1924, is that the Accident Offices Association engages on behalf of its constituent members to adjust from time to time the rates of premium for this class of insurance in such a way as to make the "loss ratio" (i.e. the proportion which the total amount paid or set aside in respect of claims bears to the premiums) not less than 60 per cent. for each of the years 1924, 1925 and 1926, and not less than 62 per cent. in subsequent years (or such other proportion, not being less than 60 per cent., as may be agreed between the Secretary of State and the Association). The methods for giving effect to this arrangement are laid down in the Directions issued by the Secretary of State in pursuance of the arrangement.†

Roughly stated, their effect is as follows:-If, on the year's experience, it is found that the "loss ratio" falls short by more than one-half per cent. of the percentage mentioned, policy holders in the companies belonging to the Association are to be allowed a corresponding rebate in connexion with the premium which next falls to be paid. If, on the other hand, the "loss ratio" exceeds the percentage by more than one-half per cent., an adjustment is to be effected by means of an excess charge. The duty of ascertaining the "loss ratio" in accordance with the procedure prescribed in the Directions is imposed on the Auditors of the Association, and for the year 1925, the "loss ratio " has been certified by the Auditors to be 51.94 per cent.‡, that is to say, the employers insured with the companies belonging to the Association became entitled, on the next renewal of their premiums, to a rebate of 8.06 per cent.

It is estimated that if all the charges and expenses referred to above are taken into account, the total amount paid in the seven great industries in 1925 in respect of workmen's compensation cannot have fallen far short of £9,000,000.

In the coal mining industry the charge arising under the Act, calculated simply on the basis of the compensation paid, works out in 1925 at about 3.1d. per ton of coal raised, as compared with 3d. in 1924; and taking £141,833,000 as

* "Undertaking given by the Accident Offices Association on behalf of its constituent Insurance Offices for the purpose of limiting the charges to employers in respect of employers' liability insurance" Cmd. 1891.

† Cmd. 2483.

the amount paid for wages in the industry (the figure supplied by the Mines Department), it would appear that 5.4d. was paid for compensation per £1 of wages, as compared with 4.9d. in 1924. As regards railways, the information obtained from the railway companies indicates that the amount of compensation paid per £1 of wages would be just under 1d. which is about the same as in 1924. As regards shipping, it would appear from the figures shown in Table 1 on page 18, that the amount of compensation paid per ton of shipping was 3.4d. as compared with 3.3d. in 1924.

In Table 4 are given particulars of the duration of compensation in each of the industries. The table below shows, with regard to the accident cases, the proportions in each group for each of the industries and the proportions in 1925 as compared with 1923 and 1924 for the combined industries. The most remarkable feature in the table is undoubtedly the great increase in 1924 and 1925 shown in the percentage of cases lasting less than two weeks. This has risen from 6.49 in 1923 to 34.98 in 1925. This result must be ascribed to the operation of the new arrangements under the Act of 1923 in regard to the waiting period and the dating back of compensation.

It must be borne in mind that cases terminated by payment of a lump sum are not taken into account in the foregoing table. These cases are usually cases in which the disablement is likely to last for a considerable period-as the payments made (see Table 5) show-and therefore if such cases were included, the

proportion of cases of disablement of longer duration would be higher than the figures in the last two columns of the table indicate.

The 473,055 disablement cases included 60,437 continued from 1924. 413,321 cases were terminated during the year, leaving 59,734 cases outstanding. Of these outstanding cases 26,711 had lasted one year or more, including 3,192 cases (mostly in the mining industry) which had lasted ten years or over.

The following table groups the non-fatal cases of accident and disease according to duration of disablement.

Duration of Compensation. (Cases of Accident and Disease.)

It will be observed that there is a marked difference as regards duration between the figures for accidents and disease. About three-fifths of the cases of accidents come within the group of those lasting less than 4 weeks, and less than 10 per cent. lasted for 13 weeks or over. In the case of disease the number lasting less than 4 weeks is less than two-fifths of the total number, and the proportion of those lasting for 13 weeks or over averages 31.8 per cent.

Table 5 shows the number of cases in which the workman's claim was settled by a lump sum payment, and the amount so paid. Out of 473,055 cases, 19,348 were settled by payment of a lump sum, either at once or after a period during which a weekly payment was made.

The tables give particulars concerning the various industrial diseases included under the Workmen's Compensation Acts. Compensation was paid, in the seven industries, in 41 fatal cases to the amount of £8,390, and in 17,256 disablement cases to the amount of £656,027. The number of "continued cases" was 8,464, or 49.0 per cent. of the total number of disablement cases (in the case of accidents the proportion was only 11.4 per

of the total disablement compensation paid for industrial diseases. The 41 fatal cases included 17 of lead poisoning, 4 of anthrax, 1 of arsenic poisoning, 1 of poisoning by nickel carbonyl, 14 of epitheliomatous cancer, 1 of compressed air illness, 2 of nystagmus, and 1 of beat knee.

As in previous years the bulk of the cases occurred in the mining industry, and were chiefly due to miner's nystagmus, beat hand and beat knee. Those diseases, together with beat elbow and inflammation of the synovial lining of the wrist joint and tendon sheaths, numbered 15,886 or 91.8 per cent. of the total number of cases. Of the remainder, 691, or 4.0 per cent., were cases of dermatitis produced by dust or liquids, 411, or 2.4 per cent., were cases of lead poisoning, and 184, or 1.1 per cent., were cases of skin or other ulceration or cancer. The remaining 125 cases, or 7 per cent., included 63 cases of various forms of industrial poisoning and 27 cases of anthrax.

Cases of miner's nystagmus show an increase on the total for 1924, and constitute over 65 per cent. of all cases of industrial disease. The growth in the number of cases of this disease since 1908, the first full year after the disease was scheduled under the Act, is very striking.

Cases of dermatitis have also been steadily growing, from 270 in 1919 to 691 in 1925. They occur in a great variety of industries, but chiefly among workmen employed in the baking and confectionery trades and in dyeing.

Compensation for Silicosis.—In addition to the compensation paid in cases of the diseases scheduled under the Acts, compensation is paid on account of the industrial disease known as silicosis (i.e., fibrosis of the lungs due to inhalation of silica dust) under a special scheme made by the Secretary of State under the Workmen's Compensation (Silicosis) Acts, 1918 and 1924, for the Refractories Industries (roughly, ganister mines and quarries, and factories engaged in the manufacture of silica bricks or other

articles or materials used for lining furnaces). This scheme embraces upwards of 200 works which employ in normal times about 3,500 persons, the number employed in 1925 being about 2,700. The scheme provides for the payment of compensation out of a general compensation fund to which all employers in the Industries are required to contribute, and which is administered by a society of employers registered as The Refractories Industries Compensation Fund, Limited; for the settlement of claims by Joint Committees representative of the employers and workmen, with an independent Chairman; and for the appointment by the Secretary of State of a Medical Board to carry out periodic and other medical examinations of the workers and give the certificates on which the payment of the compensation

depends.

It should be noted that the Scheme is concerned not only with the provision of compensation, but also with the prevention of the disease. It requires a worker newly engaged for employment in the industries to satisfy the medical authority at an initial examination not only that he is free from any signs of silicosis or tuberculosis, but also that he reaches a prescribed standard of respiratory physique. It also empowers the Medical Board to suspend a workman who is found to be so affected by silicosis that, even though his general physical capacity for work is not impaired, it would be dangerous for him to continue in the Industries.

During the period from the commencement of the Scheme on 1st February, 1919, up to the end of 1925, upwards of 13,000 · medical examinations were carried out, and certificates given in 63 cases of death, 71 cases of total disablement, and 204 cases of suspension from employment (with or without impairment of general physical capacity).

During the same period the total income of this Fund amounted to £105,980, while the total outgo amounted to £73,613, leaving a balance of £32,367 to meet outstanding liabilities. £47,018 was spent in payments of compensation as follows-£8,988 in cases of death, £16,959 in cases of total disablement, and £21,071 in cases of suspension; while £25,953 went in payment of expenses, including the medical expenses (£7,852), expenses of Joint Committees (£2,097), secretarial and administrative expenses (£7,761) and Directors' fees and expenses (£8,243).

Part II.-General Statistics as to Administration of the Acts.

The total number of cases under the Workmen's Compensation Acts which were taken into court in Great Britain in 1925 was 5,846. Many of these, however, were applications for dealing with allowances already granted, and many were settled out