104 MAJORITY REPORT. not satisfied that this is always their primary purpose and that it is not sometimes subordinated to other objects of a less com- mendable character. We do not think it necessary to the welfare of the system of National Health Insurance that it should have what may, without offence, be termed a political side. To the activities engendered by such action a dispropor- tionate part of the time of those concerned may possibly be devoted, and this must, we think, be detrimental to those important duties of daily routine in the management of the Societies which should be the first care of their paid officials. We think there is some danger to the system in tendencies of this kind, and that this may be stimulated by the arrangements under which Societies have a considerable degree of liberty in sending representatives to conferences of all kinds and remunerating them for time as well as actual expenses. If one element in the system more than any other may be regarded as a possible danger to its future, it is, we think, this inclination towards the development of what we have called a political side. 225. Having indicated these general considerations, which we think deserve serious attention, we proceed to discuss certain modifications of the Approved Society system to which, in our opinion, effect should be given as soon as possible. ADMINISTRATION OF TREATMENT BENEFITS. 226. In the first place it has been submitted to us that Approved Societies are not the most suitable bodies for the administration of ‘benefits in the nature of treatment, and that the arrangements for these benefits could be better made on a territorial basis, as is already done in the case of medical benefit. - Evidence on two directly conflicting lines has been put before us on this subject. On the one hand, bodies representing the Approved Societies have urged that ‘*‘ all treatment benefits should continue to be administered by the Societies.” (National Conference of Friendly Societies, App. XXVI, 29; Loyal Order of Ancient Shepherds, App. X1.IV, 36.) On the other hand, the British Medical Association point out that the powers of Approved Societies in this respect are restricted by the Act to paying the whole or part of the cost of treatment, and that Societies are not entitled to administer the treatment benefits in the proper sense. The Association ‘‘ insist that payments in respect of treatment shall be under public and not under Approved Society administra- tion.”” (Q. 15,000-15,002, 15,092-15,098.) 297. Sir Walter Kinnear, giving evidence on behalf of the Ministry of Health. informed us that °° the administration of schemes of treatment benefits is still largely in the experimental stage. The Societies have administered these benefits fairly well, considering the difficulties under which they work, but many of the Societies, and particularly the smaller ones, are experiencing