Special  Report  of  the  Axiditors  on 
xviii 
4.  As  shown  in  the  Balance-sheet  for  1903,  the  “Reserve  Fund” 
stood  on  December  31  last  at  13,993/.  9.s-.,  with,  of  course,  vastly 
diminished  claims  upon  it,  as  against  the  29,033/.  9.s.  4r/.  with  which  it 
was  started  in  1890,  fourteen  years  ago.  But  the  invested  capital  now 
held  against  it,  viz.,  the  Society’s  holding  of  13,100/.  Harewood  House 
Stock,  is  no  longer  available  for  the  purpose  of  Life  Members’  future 
contributions  to  revenue,  or  indeed  for  the  purposes  of  the  Society  at  all, 
as  it  is  pledged  to  the  Bankers  against  advances  for  carrying  on  the 
Society’s  ordinary  business  ; which  advances  w'ill  have  sooner  or  later  to 
be  liquidated. 
5.  We  have,  therefore,  concurred  in  the  recommendation  made  by 
the  Society’s  professional  Accountants  for  merging  the  whole  of  the 
Reserve  Fund  in  the  item  of  12,140/.  17.s.  bd.  available  capital  at 
December  31,  1903  ; and  in  these  circumstances  it  hardly  appears  to  us 
that  any  useful  object  would  be  served  by  our  protfering  to  the  Council 
advice  as  to  any  method  in  which  pro\  ision  can  be  made  in  the  future 
for  the  continuance  of  the  Life  Members’  privileges,  unless  it  be  from 
some  new  fund  to  replace  that  which  has  disappeared  through  the 
exigencies  of  the  Society’s  financial  position. 
6.  At  the  same  time,  we  feel  bound  to  record  our  conviction  that 
the  time  has  arrived  when  the  Society  ought  no  longer  to  accept  Life 
Compositions  from  its  Members,  at  any  rate  upon  the  existing  conditions  ; 
as  it  is  clear  that  for  a long  time  to  come  the  Society  must  be  handi- 
capped by  having  over  a third  of  its  Members  (3,529  out  of  9,562  at  the 
end  of  1903)  who  will  pay  nothing  tow'ards  its  support  in  future  years, 
but  who  must  be  accorded  the  same  pi’ivileges  as  the  Annual  Members 
who  will  be  paying  1/.  in  each  year. 
7.  Independently,  therefore,  of  the  necessity  of  making  provision 
by  way  of  Reserve  to  meet  the  possible  losses  on  the  next  few  Shows  at 
Park  Royal,  there  is  the  serious  question  to  be  faced  of  the  possibility 
of  providing  in  the  future  some  3,500  Life  Members  with  their  privileges 
out  of  the  annual  income  to  which  only  the  6,000  Members  who  subscribe 
1/.  a year  will  contribute:  but  this  is  a matter  which  we  feel  we  must 
leave  in  the  hands  of  the  Council. 
8.  We  append,  as  desired,  a Statement  of  the  total  number  of  Life 
Members  on  the  books  on  January  1,  1904,  showing  the  years  in  which 
they  were  elected,  and  divided  into  two  sections  : (1)  those  who  were 
elected  before  1890  (when  the  Life  Composition  Avas  at  the  rate  of  10/.), 
and  (2)  those  elected  in  1890  and  since,  Avho  ha\'e  paid  a Composition 
of  15/.  [These  Tables  have  been  brought  up  to  November  1,  1904,  by 
the  insertion  of  the  existing  figures.] 
( HUBERT  J.  GREENWOOD. 
(Signed)  j JONAS  M WEBB. 
( NEWELL  P.  SQUAREY. 
Auditors  on  behalf  of  the  Society. 
13  Hanover  Square,  W. 
April  27,  1904. 
