TRANSACTIONS OF SECTION F. 731 



of 1793 appears to begin by rendering lawful the institution of Friendly Societies, 

 there neither was at that time nor is now any law or statute which deprives the 

 King's subiects of the right of ai^sociating themselves for mutual support.' 



Upon this principle the Legislature has hitherto proceeded. lCegistra,tion is 

 voluntary. The subscriptions of the members are voluntary. The conditions of 

 inember.s'hip are such as the rules framed by the members themselves impo.se. 

 They have full authority to alter those rules from time to time. Those condition.s 

 may, if the members so please, imply that the subscriptions are to be small and 

 the beneiits large. They may provide for investment of funds on any secui-ity 

 they think fit so long as it is not personal security. They may provide for the 

 periodical division of the funds so long as they make it clear that all claims 

 existing at the time of division are first to be met. Up to this point the regis- 

 tered society and the unregistered are hardly distinguishable. What, then, are the 

 obligations consequent upon registry ? There is the making an annual return and 

 the making a quinquennial valuation ; but the action to be taken by the society 

 upon the result of the valuation is wholly in the discretion of the members.^ 

 The valuer may demonstrate beyond doubt "that the society in order to save itself 

 from disaster must increase the subscriptions of the members or diminish their 

 benefits ; but neither he nor the Registrar can enforce the recommendation. The 

 society has its destinies wholly in its own hands. Then, again, the Act contains 

 certain provisions for the protection of members. Individual members have the 

 right to inspect the books of the society, to receive copies of its balance-sheets 

 and valuations, and so forth. A certain number of the members have the right to 

 apply to the Registrar to appoint an inspector into the affairs of the society or to 

 call a special meeting of the members. The inspector can only report — there is 

 no action which the Registrar can take upon his report if the members disregard 

 it. The special meeting will in no way differ from an ordinary meeting called by 

 the society itself, e.vcept that it may choose its own chairman. The Registrar 

 cannot in any way control its proceedings. Even these things he cannot do 

 of his own motion without being set in action by a competent number of the 

 members. If a society becomes insolvent, members may in like manner apply to 

 him to wind it up : he may see that a readjustment of contributions and benefits 

 would set the society on its legs again, and may suspend his award of dissolution 

 to enable the society to make that readjustment, but he can do no more. If the 

 society refuse to make it, he has no option but at the end of the period of suspen- 

 sion to issue the award. Here again he may have the fullest knowledge that a 

 society is hopelessly in.solvent, yet he can do nothing unless a competent number 

 of the members call in his aid. I confess that I think the Legislature might have 

 gone further in this respect and conferred upon the Registrar, or at any rate upon 

 some public authority, the power to deal compulsorily with cases of hopeless 

 insolvency, and if necessary to appoint a receiver, as such cases are not infrequently 

 complicated with fraud carried on in circumstances which make it difficult for a 

 competent number of the members to join in an application to the Registrar. 

 However that may be, taking the legislation as it stands, it embodies to the 

 fullest extent the principle laid down by the Committee of 1825. 



The surrender of freedom which a Friendly Society is called upon to make in 

 order to obtain the privileges of registry, which are not inconsiderable, is therefore 

 exceedingly small ; yet it is sufficient, as we have seen, to keep out of the registry 

 office a large number of societies. It seems not improbable, looking back on the 

 history of legislation on the subject — and the observation is a curious one — that un- 

 willingness to register has been closely connected with actuarial considerations. 

 Thus, in the year 1819, an Act was passed which provided, among other things, 

 that the justices should not confirm any tables or rules connected with calculation 

 until they had been approved by two persons at least known to be professioiial 

 actuaries or persons skilled in calculation ; but that was repealed in 1829. Again, 

 in 1846 an Act was passed which provided, among other things, that every regis- 

 tered society should make a quinquennial valuation ; but that was repealed in 

 1850 before a single quinquennial period had arrived. It was not till a quarter 

 of a century after 1850 that this most salutary provision again found a place ifl 



