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cannot indeed be considered a gain to the individual member. But it has long since been pointed out (see the 4th Report of the Friendly Societies Commissioners, para. 768) that all societies insuring such payments may be contended to be within the Life Assurance Companies Acts, and subject to the heavy penalties of those Acts in default of compliance with their provisions. It follows that an unregistered Friendly Society, if it insures payments to the members themselves on sickness or any other contingency, runs the risk of being treated by the Courts as an illegal company, of which the law can take no notice except for penal purposes, and if it insures payments on death, of being subject to the penalties of the Life Assurance Companies Acts.

The case of In re Padstow Total Assurance Association was followed as an authority in Jennings v. Hammond, which will be found referred to for another purpose below, p. 42.

The provisions of Clause 6 and others of the Married Women's Property Act, 1880, would appear to apply to unregistered Friendly Societies.

XVI.-FRIENDLY SOCIETIES. IN THE COLONIES AND ABROAD.

(a.) Victoria.

In his Third Annual Report for the year 1880, prefixed to the Statistics of Friendly Societies for the Colony of Victoria, the Government Statist reports his proceedings with reference to the getting in of returns and valuations from the societies. Valuation tables adapted by an officer of the department, Mr. E. F. Owen, from those of Mr. Ratcliffe, had been prepared. Public valuers had been appointed, and scales of fees fixed, in accordance with the precedent of the mother country, on a higher scale for valuations by an actuary named by the Government, than for those by the public valuers. On the application however of the managing body for the Colony, of the Manchester Unity of Odd Fellows, a reduction of the scale of fees in the former case, was assented to by the then Premier, the Hon. Graham Berry, and by a new Regulation, when a society or branch desires that its assets and liabilities shall be valued and reported on by an actuary to be named by the Government Statist, the fee is fixed on the following scale, viz. : where the benefits to be valued do not exceed three classes of sick allowance, together with sums payable, on the deaths of members and of their wives, - for valuing societies consisting of not more than 25 members, 12 s. 6 d.; if of more than 25 members, for the first 25 members 12 s. 6 d., with a further sum of 1 d. in respect of each additional member. When the benefits to be valued exceed those mentioned, the fee is to be fixed by the Government Statist with the approval of the Chief Secretary. In computing valuation fees, each branch is to be considered as a separate body. Mr. Owen, already named, has been appointed actuary for the purposes of the Regulation. The Statist reports the refusal by him of a valuation (the only one returned during the year), on the ground that the method of valuation adopted was erroneous in principle, the gross premiums having been valued instead of the net, so that the society was credited with the value not only of the amounts payable to meet the risk of death, but also of the per-centage or loading added to the net rates for defraying the cost of management, &c. The annual returns for 1880 have again been received from every registered society and branch in the Colony, a result which, the Statist with pardonable pride observes, neither the mothercountry nor, he understands, any of her Colonies except Victoria, has ever succeeded in obtaining. In most instances the money balances have been brought forward correctly, which is a great improvement on former experiences. But the returns of the number of members are very frequently incorrect. The number of parent societies was 32, or two less than in 1879. The number of branches also decreased from 766 to 748. But the number of members increased by 141, to 46,074, and the income by 1,141 l., whilst the expenditure showed a diminution of 1,715 l., the income exceeding the expenditure by 19 per cent. The total funds were 450,719 l., or 27,481 l. more than in the previous year, giving an average (after deducting debts) of 9 l. 14 s. 4 d. per member, as against 9 l. 2 s. 7 d. in the previous year. The rate of interest on investments (5.79 per cent.) was higher than in any year since 1872. The number of members who received sick pay was equivalent to 18 per cent. of the total, being

one-half

one-half per cent. less than in 1879. The average duration of sickness, 7.6 days per member, was also 1-10th less than in the previous year; the average amount of sick pay 20 s. per member, 7 d. less than in 1879, and the average rate of sick pay paid to such members was less than in any of the preceding years. Attention is drawn to the high rates of sickness in two societies in which there are large numbers of members. The death-rate was lower than in any year since 1873. The cost of management, 10 s. 10 d. per member, was exactly the same as in 1879. The Manchester Unity of Odd Fellows, Ancient Order of Foresters, and Independent Order of Rechabites continue to head the list of societies, both as to members and funds. The Statist concludes by the following observations, which are as applicable to societies in the mother country as to those in the Colony.

"As the future prospects of the societies rest in a great measure on the amount of knowledge which the persons most active in their management possess of the real nature of the business they have under their control, it is essential they should realise that they are engaged in the administration of funds depending for their successful progress on contingencies, similar indeed to those on which are based the contracts of ordinary life assurance societies, but of a far more complex character; and that the security of the society, and its ability to fulfil its lifelong engagements with all its members is, from the nature of the case, assuming the scale of contributions to be equivalent to the benefits legitimately claimable, entirely dependent on the steady adherence to two important principles of administration; first, that the greatest practicable proportion of the funds is kept constantly invested at the highest rate of interest obtainable consistently with safety; and secondly, that an effective supervision is exercised to confine the expenditure within the limits provided for in the table of contributions. The greater the number of persons found in the societies possessing sound views on these points, the more marked in its effects on the steady growth of the funds, will be the sense of moral responsibility brought to the consideration of all questions affecting the finances."

(b.) New Zealand.

From New Zealand has been received a report on the sickness, mortality, and other contingencies experienced by Friendly Societies during the quinquennium ended 21st December 1877, addressed by Mr. F. W. Frankland, the actuary for Friendly Societies, under date 29th July 1881, to Mr. W. R. G. Brown, Registrar of Friendly Societies, and presented by the latter to both Houses of Assembly. The actuary states that the number of returns he has been able to utilise is 58, consisting of 33 lodges of the Manchester Unity of Odd Fellows, 16 courts of the Ancient Order of Foresters, and one Sanctuary of the Ancient Order of Shepherds, two Tents of the Independent Order of Rechabites, one Division of the Sons and Daughters of Temperance, three branches of the Hibernian Australstan Catholic Benefit Society, and two isolated Local Societies. The remaining returns were found on examination to contain either palpable inaccuracies, or such suspicious features that the experience of sickness, mortality, &c., might have lost more than it would gain by their inclusion in the data. The period of the return being anterior to the passing of the Friendly Societies Act, 1877, the actuary points out that the present compilation must be greatly inferior in reliability to future ones relating to periods subsequent to the passing of the Act. As might be expected from the fact that all societies in New Zealand are necessarily of recent establishment, and from the ages at which persons become members of friendly societies, the great bulk of the members included in the experience were young and middle-aged. Considerably more than half were born subsequently to 1840; very few indeed before 1820. But it may be said, in general terms, that the proportion of old and elderly members in all New Zealand societies is steadily increasing from year to year, and that it must be expected to increase for many years to come. Hence the present annual rate of expenditure per member in sick and funeral benefits is very much smaller than that which may be expected in the course of decades. The maximum age at which new members can be admitted is in most New Zealand societies either 40 or 45, while the minimum age, except in juvenile branches, is 18, or in rare cases 17; no society in the Colony, so far as the writer is aware, having availed itself of the statutory permission to enrol members at 16. Out of 3,719 members admitted, 21.05 per cent. were under 20, 27:40 between 20 and 25, 21:35 between 25 and 30. The per-centage of secessions is found to decrease steadily from age-period 20.25 onwards. The rates of secession vary very much from one society to 373.

another, and are found to be very much heavier in the mining districts than in any others. After various observations on the mortality and sickness experience derived from the returns, the actuary sums up as follows the most important conclusions embodied in his report:

"(1.) The observed rates of sickness and mortality at the ages for which a considerable body of facts exists are lower than those which obtain for the corresponding ages in England.

(2.) It would be unsafe however to infer from this that the actual vitality of the members composing our societies is higher than that of their English brethen, as apart from the circumstance that this is the first experience ever compiled in New Zealand, and moreover requires to be viewed with especial caution owing to the impossibility of completely verifying the accuracy of the returns, the result may be explained by the more shifting character of the New Zealand membership, and in the case of the sickness, by the forbearance exercised by many members in claiming sick pay during short illness.

And he declines therefore, as the result of the investigation, to recommend the adoption of lower rates of contribution than those which he has already submitted, or of less rigorous standards of valuation than those of which he has expressed his approval.

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(c.) France.

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By the kindness of Baron Henri Chadenet, Sous Directeur, Ministère de l'Intérieur, a copy has been received of the "Rapport sur les opérations des Sociétés de Secours Mutuels " for 1880, presented to the President of the French Republic by the Minister of the Intérior (1880). Although relating only to 6,777 societies, the report forms a volume of 449 pages. "Sociétés de Secours Mutuels," answering to our Friendly Societies, are divided into two classes, approved societies," 4,790 in all, and "authorised societies," 1,987 in all. One hundred and ninety-seven societies were “approved" in 1880, but 22 had to be struck off the list as having been dissolved, having amalgamated with others, or having ceased to exist, leaving a net gain of 185. One hundred and five societies were authorised, but 28 having had to be struck off the list, the net gain is 77. It is somewhat remarkable that the Department of the Seine, which includes the capital, whilst heading in point of numbers the list of departments as respects" authorised societies with 323, stands only fourth (with 231) on the list as respects "approved societies." This is headed by the Gironde (which includes Bordeaux) with 266, followed by the Rhône (including Lyons) with 255, and the Bouches du Rhône (including Marseilles) with 248. The Gironde comes second on the list as respects authorised societies, with 195. The total number of members of both classes, on 31st December 1880, was 1,065.507, of whom 146,036 honorary, the proportion of honorary members being 20 per cent. in "approved," and 7 per cent. in "authorised," societies. The increase of membership in 1880 was 4,665 honorary, and 45,873 participating or ordinary members. For the last four years the total membership has exceeded the maximum attained in 1869, before the loss, through the FrancoPrussian war, of three departments. Of the ordinary members, 772,523 are males, and 144,948 females. The mean membership per society is 27 honorary members and 139 ordinary, of whom 123 males, and 16 females. Two hundred and sixty-nine "approved" societies have 20,769 infant associates (agrégés), but only 41 "authorised" have such associates, in all 2,189. The total funds amount to 94,556,372 fr. 10 c. (say 3,767,186 l.), of which the "approved" societies hold 77,766,646 fr. 46 c. (or 3,098,272 l.). The increase of funds in 1880 was 3,570,724 fr. 74 c. (or 142,260 l. nearly). The report gives an infinite amount of detail as to rates of contributions, entrance fee, fines, State subventions, donations, bequests, benefit and management expenditure, the number of sick, and number of days' sick pay, medical fees, cost of drugs, mortality, societies authorised to acquire land (a right only allowed to those which are officially recognised, apparently under the condition of having at least 2,000 l. funds, as being of public utility), pensions for old age, honorific rewards granted to members of the societies (the list of which runs to no less than 31 pages), &c. Much of the matter of the report is absolutely foreign to English friendly society law and practice, whilst a large portion consists of details of which, on the four to fivefold greater scale of the system in the United Kingdom, it would be useless to attempt the tabulation.

XVII.-INDUSTRIAL AND PROVIDENT (CO-OPERATIVE) SOCIETIES.

A new regulation under the Industrial and Provident Societies Act, identical with No. 81 under the Friendly Societies Acts (ante, p. 7), was approved by the Treasury, 25th May 1882, viz.:

47. The Chief Registrar may dispense with the obligation to supply a duplicate of any document when such obligation is imposed only by the Regulations.

Among the 51 new co-operative societies registered during the year 1881. are included two freehold land societies, one land and building society, and one building society. Noticeable for their objects are the "Snitterfield District Co-operative Farming Society," the "Gloucester Fish and Game Supply Society," two Licensed Victuallers Societies (Poplar, and South East London), and, as a set-off, a Coffee-house Society (Moulton), and a Coffee Palace Society (Whitby Victoria); the "Pavement Restaurant" (Nottingham), the "Hindley Green Working Men's Club," the "Sheepshed Co-operative Hosiery Society," the "Northamptonshire Productive Society," and, as an instance of one co-operative body growing out of another, the "Co-operative Wholesale Society's Leicester Employés Supply Association."

At the solicitation of the Central Co-operative Board, the abstract of the returns of Co-operative Societies has been drawn up in a somewhat more extended form, giving 12 instead of eight columns. The new columns are those of "interest and profit on investments," "investments other than in trade," "amount of profit applied to educational purposes," and "loss."

It was mentioned in the Chief Registrar's Report for 1880 (p. 7) that in consequence of the criticisms on the form of return issued by the office, by the Central Co-operative Board, the Chief Registrar had for the returns of the year 1880 authorised that board to issue at its own expense to all societies an alternative form, which would be accepted by the office in lieu of its own form, if duly filled up. The result was that out of 953 societies from England and Wales sending returns, only 295 (including seven societies which sent in both forms) adopted the form prepared by the Central Co-operative Board, or less than one-third of the whole number. Under such circumstances, the Chief Registrar did not feel justified in repeating the experiment, still less in adopting the new form. He thinks it right to add that in the returns made in the optional form there were not wanting instances of the same blunders, and of the same inability to understand the meaning of a trade account, which are observable in the other returns. One society adopting the optional form returned in the first instance both a profit and a loss.

The number of returns received was 953 instead of 937*, or an increase of 16, 62 societies neglecting to send returns. The number of members was 526,686, showing an increase of 19,569. There was indeed a falling off in the Welsh returns, those from England rising from 907 to 932, whilst those from Wales fell off from 29 to 21. The share capital, 5,806,545 l., showed an increase of 432,366 l. The loan capital, 1,124,795 l., was less by 200,175 l. than in the previous year. The sales of goods rose to 20,129,217 l., an increase of no leess than 2,312,280 7. over 1880, and 1,667,464 l. over 1879, the stock in trade however rising only by 25,335 l. to 2,512,039 l. The balance profit was returned at 1,145,2187., and the trade charges at 1,285,875 l., as against 1,691,362 l. and 1,345,308 l. respectively for 1880; but it has been discovered that these figures hitherto have been very unreliable, owing to the imperfect filling up of the return forms by many societies, which, as before stated, are as yet wholly unable to understand what is meant by a trade account. The returns of the year must be considered to show a decided revival of prosperity. Sixteen

*The correct figure for 1879 was 937, and not 957, which was erroneously added up.

Sixteen societies returned more than 5,000 members, being one more than in the previous year, viz:

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The only change in the first nine places is that the Rochdale Equitable Pioneers yield the second place to the Manchester and Salford Equitable. After this the order varies greatly, the "Huddersfield Industrial" passing from the 13th place to the 10th, the Bradford Provident Industrial from the 15th to the 11th, the Oldham Equitable Co-operative from the 14th to the 12th, while the Derwent Co-operative Flour Mill (which remained stationary in point of membership) falls from the 10th place to the 14th, the Lenton and Nottingham Co-operative from the 11th to the 16th, the Heckmondwike Industrial Co-operative from the 12th to the 13th, and the Plymouth Mutual Co-operative and Industrial, which had no place in the former list, takes the 15th. It may be observed that the Leeds Industrial Co-operative and the Plymouth Mutual Co-operative and Industrial added each over 1,000 to their membership, a surprising increase for the smaller society.

The same seven societies as last year returned their sales at over a quarter of a million.

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The only alteration in the list being that the Oldham Industrial Co-operative rises from the last place to the fifth. The large increase in the sales of the Co-operative Wholesale and the Sowerby Bridge United District Flour Societies will be noticed.

The amount applied to educational purposes was 13,2627. (out of which Wales contributed 1.), or in the proportion of under 3 d. in the pound on profits. The application was however only made in 31 out of the 39 English counties, and one out of the six Welsh which have co-operative societies. Over 10,000l. of the total amount was contributed by two counties, Lancashire and Yorkshire, and the share of Lancashire alone amounted to 9,133 l., or nearly 6 d. in the pound on profits.

It may be observed that the county of Rutland in England and six Welsh counties (Anglesea, Brecon, Cardigan, Flint,* Radnor, and Pembroke) are with out any co-operative societies.

The Married Women's Property Bill, 1882, which repeals the existing Acts on the subject, when it shall have passed into law, must necessarily affect the interests

*The single society in Flintshire was dissolved in the course of the year.

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