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3 s. per week, and he summoned the secretary of the society before the stipendiary magistrate for the payment of 40 s., being eight weeks' sick pay at 5 s., due 3rd January 1881. The matter having been, at the suggestion of the magistrate, referred by consent to the Chief Registrar, it was contended on behalf of the society that blindness was not sickness within the meaning of the rules; that the plaintiff joined the society with knowledge that the rules might be altered; that it was his duty to object to the registration of the new rules if he did not wish to be bound by them; and it was sought to distinguish the case from the one advised upon by Lord Selborne when Attorney General in 1864 (see Mr. Tidd Pratt's Report of that year, p 278), on the ground that this was a complete amendment, and that therefore there were no existing rules under which he could claim except such amendment. Held, that the case was not distinguishable from the one advised on by Lord Selborne or from Caundle v. Bingham (see Report of the Chief Registrar for 1879, p. 17), and award that plaintiff was entitled to the 40 s. sick pay. (Davis v. Bird, re Loyal Brunswick Lodge of Independent Odd Fellows; hearing 8 April 1881; award 11 April.)

(4.) Inspections and Special Meetings.

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An inspection into the affairs of the Liberal and Friendly Society, Formby, under the provisions of Section 23 (9) of the Friendly Societies Act, 1875, was applied for and directed, Mr. Edwin Smith of Liverpool, one of the Public Auditors for Lancashire, being appointed the inspector. The inspection took place on 30th August and 2nd September 1881. The management of the society appears by the inspector's report to have been far from satisfactory. The books had disappeared, and the late secretary "suspected they had been stolen from the club box, which had been broken open." He entirely repudiated the printed balance-sheets as not representing the accounts which he had prepared. A trustee, one of the applicants, could neither produce any books nor supply information about the accounts. None of the members were able or willing to account for the disappearance of the books. According to the published statements, as examined by the inspector, there was a balance unaccounted for of 537 l. 3 s. 1d. A new committee had however been appointed with a fresh staff of officers, and it appeared to be the general feeling that it would be unwise and almost impracticable to institute proceedings against the secretary or any other members. The inspector thought it only justice to the members to state that they were principally agricultural labourers and quite incapable of managing or checking accounts.

The details of an important inspection which took place during the present year of the affairs of the Scottish Legal Life Assurance Society, the largest collecting burial society after the "Royal Liver, "having its registered office in Glasgow, but doing business in England and Ireland as well as in Scotland, will belong to the next year's Report.

Two applications were made for the holding of special meetings, under the provisions of Sect. 23 (2) of the Act.

In the one case, that of the British Museum Attendants Mutual Life Assurance Society, the ground of the application was that an alteration of the rules. was desired; but by the rules notice of any proposed alterations had to be read at two meetings before any action could take place, so that as the society only met half-yearly, no alteration could be attempted under twelve months unless by means of a special meeting under the Registrar's powers. The special meeting was held on the 25th April 1881, and the rules were amended.

In the other case, that of the Worthy Religious Benefit Society, King's Worthy, Hants, the ground of the application was of the same nature, viz., that the rules could only be altered at the annual meetings, and by a majority of 24-25ths of the members present, whilst the monthly contributions were found to be insufficient to meet the claims for sick pay, &c., and other rules required alteration. The special meeting was held on the 5th December 1881, and the necessary alterations were agreed upon.

(5.) The Affiliated Orders.

The following societies registered branches during the year 1881, two which had not registered branches before being marked by an asterisk* :—

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The total being 42 societies and 1,591 branches, as against 47 societies and 2,080 branches in 1880, 49 and 2,594 in 1879, and 37 and 2,046 in 1878. There has thus been a decrease of about 500 a year since 1879, owing to the natural slackening of the process of conversion, as well as of that of the first registration of old established branches which had never been registered at all under the former Acts. A considerable falling off in the number of conversions during 1881 was indeed fully anticipated (see Report for 1880, p. 19).

The Manchester Unity has again taken the lead of the Ancient Order of Foresters, the Loyal Order of Ancient Shepherds, Ashton Unity, retaining as usual the third place, and being again with the two largest orders the only one which registered more than 100 branches. The fourth place is now taken by the National United Order of Free Gardeners, which held only the seventh in 1880, and the fifth by the Independent Order of Rechabites, which held only the 22nd, the Grand United Order of Odd Fellows falling from the fourth place to the seventh, and the Ancient Order of Shepherds from the fifth to the sixth. Among societies registering five or more new branches, eleven, viz., the Manchester

Manchester Unity of Odd Fellows, National United Order of Free Gardeners, Independent Order of Rechabites, Ancient Order of Shepherds, Wisbech Unity, Loyal Order of Ancient Shepherds, Improved Independent Order of Odd Fellows, South London Unity, Order of the Sons of Temperance, Order of Druids, Kent United District, Ancient Order of Britons, Loyal Order of Alfreds and Catholic Benefit Society, registered more new branches than during the previous year (besides the Swansea Valley Unity Independent Order of Odd Fellows, which registered seven new branches during the first year of its existence).

The following is a summary of the registry of branches during the six years 1876-81:

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It thus appears that over 9,000 bodies have been registered as branches since the Act of 1875 came into operation, of which over 7,000 were registered previously as societies. The number of branches so registered was formerly roughly estimated at 10,000, so that seven-tenths of the whole would appear to have been by this time converted. It is probable however on the one hand that the total number was under-estimated, on the other that there will always remain a stubborn minority too jealous of the executive bodies of their respective orders to give up their position as societies separately registered and legally independent.

(6.) Insurance of Children.

A complaint has been received during the present year by the Chief Registrar from a father, that, on the death of his child aged one year and eleven months, the sum of 6 l. had been paid by the Refuge Assurance Company, Limited (an industrial assurance company within the meaning of the Friendly Societies Acts), to the child's aunt, and that he was himself refused a certificate for the sum of 3 l. for which he had insured the child in the Prudential Assurance Company. The payment to the aunt being clearly an offence under Sect. 28 (2) of the Friendly Societies Act, 1875, which enacts that "no society shall pay any sum on the death of a child under 10 years of age except to the parent of such child, or to the personal representative of such parent," the Chief Registrar wrote to the Secretary of the Refuge Assurance Company, Limited, calling for an explanation, and received the following reply:

Dear Sir,

Refuge Assurance Company, Limited, Chief Office, 89, Corporation-street, Manchester, 11 July 1882.

I have had the case of Catherine Leeson fully investigated. I enclose a copy of our agent's letter, wherein he admits paying the money to Mrs. Jubb, the aunt of the child, but in the presence of, and with the consent of, the mother of the child. It has been done entirely through ignorance of the law by our agent, on production of the registrar's certificate for the amount of 6 l. I have issued orders that in future no more such cases are to be paid, and that more attention be paid to irregularities. Trusting to receive no more complaints,

J. M. Ludlow, Esq., Registrar, London.

I

am, &c.
(signed) James Proctor,

Manager.

(Enclosure.)

(Copy.)

Dear Sir,

Doncaster, 4 July 1882. With reference to the child Leeson's claim. It is quite true that it was paid to Mrs. Jubb, the child's aunt, who always paid in the premiums, but it was paid in the presence of, and with the consent of, the child's mother, and I thought that I was not doing wrong.

Yours, &c. (signed) S. B. Letchfield.

It being admitted by the father that the money was expended by the aunt in paying the funeral expenses of the child and other charges, and the father himself declining to proceed as an aggrieved person against the Refuge Company, the Chief Registrar did not think the case was one in which, although an undoubted offence against the Act had been committed, the office was called upon to prosecute. He accordingly informed Mr. Proctor that, in reliance on the assurances contained in Mr. Proctor's letter, he did not on this occasion propose to take further steps in the matter.

The Chief Registrar, however, thought it his duty to point out to the Registrar General that the illegal payment had only taken place through the action of the Registrar of Deaths in giving a certificate for the payment of a definite sum by a specified body to a person incapable of lawfully receiving the money, although the form of application, which, being printed at the back, forms distinctly one with the certificate, has printed on it Sub-section 2 of Sect. 28 of the Act. The Chief Registrar is not aware whether any or what steps have been taken by the Registrar General to check such practices in future.

The Chief Registrar has also had information that in another case a sum of 2 7. was paid to a grandmother, the father having insured it for 3 l. 10 s. in one society, and being entitled to 17. 1 s. on its death from a district of the Grand United Order of Odd Fellows, making 6 l. 11 s. in all, or 11 s. beyond the lawful

amount.

It will be noticed that under the provisions of the Government Annuities Act, 1882, when it becomes law (see post, p. 45) the lives of children eight years old and upwards may be insured for not exceeding 5 . through the medium of a Post Office or other savings bank.

XV. THE LEGAL POSITION OF UNREGISTERED SOCIETIES.

It appears advisable to notice a case which although decided in reference to a different class of bodies, may prove to be of considerable importance in reference to unregistered friendly societies, that of "In re Padstow Total Loss and Collision Assurance Association," Law Reports, 20 Ch. D., p. 137 (11th January 1882). The case was that of an unregistered society, of an entirely mutual character, formed for the purpose of marine assurance, by the rules of which no vessel could be insured for an amount exceeding three quarters of the value, or 5,000 7. in all. An order had been obtained from Vice Chancellor Malins for winding it up under the Companies Acts, but the order was discharged by the Court of Appeal, consisting of the Master of the Rolls, and Lords Justices Brett and Lindley, on the ground that the society was an illegal company, as being formed for the acquisition of gain by the individual members, consisting of more than 20 members, and being unregistered.

The Master of the Rolls said: "That it" (the society) "had not the object of acquiring gain to the company as a whole is plain, but it appears to me equally plain that its object is the acquisition of gain by the individual members. They pay a small sum with the view of receiving a large one in case of the happening of an uncertain event, which may or may not happen, and which if it does happen would otherwise cause them a large loss. Is it the less an acquisition of gain because the event which makes it payable happens to be a loss? It does not appear to me that the word 'gain' can have any such limitation put upon it; according to the strict meaning of the word there is a gain when the insured receives a large sum in consideration of his having paid a small one, and looking to the general object and intention of

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the association, and to the general purview of the Act of Parliament, it appears to me that the strict meaning of the term is its proper meaning here. The object of the Act was that commercial associations or companies consisting of more than 20 members should be registered. This is clearly an association of that character, and it appears to me to come entirely within the general provision of the Act."

Lord Justice Brett said: "If" (the association) "was formed for the purpose of carrying on a long consecutive number of transactions all of a similar kind and through a long period, it was therefore, to my mind, an association formed for the purpose of carrying on, and was carrying on, a business. And what business? The well-known business of insurance. True it was for mutual insurance, but I think it cannot be denied that it was formed for the purpose of carrying on business. We then have only to consider whether it was formed for the purpose of carrying on a business, the object of which was the acquisition of gain by the individual members. Now, what was the object of this association with regard to the individual members? They became really and substantially part insurers of the ships of all the other members; but that was not their object with regard to themselves, their object was not to become insurers without receiving anything. Their object was that in consideration of their insuring other people's ships, their own ships should be insured in case of loss. Therefore the object of the association was with regard to each individual member, that he should be indemnified in case his ship was lost. The question therefore is reduced to this, whether it can be properly said that the business was being carried on by them for the purpose of gain. An individual member loses his ship, and he gets from his brother associates a sum of money, which partially indemnifies him for the loss. Given the loss of the ship, what he gets from them seems to me to be clearly a gain to him. Therefore the object of the association is that each member may acquire gain upon the happening of certain events. I think that this comes within the meaning of the 4th section, and that this therefore is an attempt to form a company, association, or partnership, which is prohibited by the 4th section, and accordingly that there never existed at any time any company, association, or partnership of which the law could properly take cognisance."

Lord Justice Lindley: "The question assumes this shape,-Is a diminution of loss a gain within the meaning of the section? If we looked at the question at the time when an insurance was effected we might say that the acquisition of gain was not the object, but if we look at it when the ship has gone to the bottom, and a loss has been incurred, the gain is obvious enough, because the owner gets back a large part of its value by the insurance. In that point of view the object of the insured is to acquire gain in the sense of diminution of the loss which he would otherwise suffer. Looking to the language of the section it appears to me that it is wide enough, and was intended to be wide enough, to include all such associations as this, and that the language properly construed applies to such associations as the present . . The language of this section is imperative that no company consisting of more than 20 members shall be formed for the purposes therein mentioned, unless it be registered; when therefore such a company is not registered it is illegal in this sense, that it is a prohibited thing, and the law cannot take notice of it, except perhaps in a penal point of view, which of course is a question which we are not now considering."

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The bearing of the above judgment on societies formed for the relief or maintenance of members in case of shipwreck, or loss or damage of or to boats or nets, "and not insuring a gross sum exceeding 200 l., which might be registered under the Friendly Societies Acts, is obvious. Unless such societies become registered either under the Friendly Societies Acts or the Companies Acts, they are a "prohibited thing," of which the law can take no notice except "in a penal point of view."

But it is a grave question whether the language used by the Court is not wide enough to include at least all societies insuring sums of money in sickness. All insurers for sick pay, to use the word of the Master of the Rolls, "pay a small sum with the view of receiving a large one," at all events as compared with the sum paid-" in case of the happening of an uncertain event-which, if it does happen, would otherwise cause them a large loss." Payments on death

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