46 
MAJORITY REPORT 
increase in the normal rates of sickness and disablement benefits 
would approach the borderline of over-insurance. The National 
Conference of Industrial Assurance Approved Societies (App. VI, 
20; Q. 5235, 5245-5269, 5424-5427) suggest that increases to the 
normal rate of sickness benefit should be restricted to 5s., and 
that not more than two-thirds of the surplus of any Society should 
be applied to such benefits. The witnesses also referred to the 
relatively greater beneficial effects of treatment benefits, and 
expressed the opinion that sickness benefit cannot be administered 
successfully without certain additional benefits in the nature of 
treatment. The Manchester Unity of Oddfellows (App. VII, 46- 
49; Q. 5580-5610, 5923, 5952-5956) urge a statutory limitation of 
increases in the rates of cash benefits, and consider that excessive 
eash payments have a tendency to destroy personal thrift. They 
also consider that treatment benefits are much more important 
from the standpoint of public health. The Independent Order of 
Rechabites (App. VIII, 81; Q. 6108) suggest a limit of 5s. in 
the rate of increase of sickness benefit on the ground of the 
greater value of treatment benefits. The Rational Association 
Friendly Society (App. IX, 82) state that excessive cash benefits 
tend to over-insurance and malingering, and on this ground 
suggest a statutory limitation of additional cash benefits. The 
Joint Committee of Approved Societies (App. XIV, 6; Q. 8202, 
8211-8212) suggest a maximum rate of sickness benefit of 18s., in 
the hope that the large surpluses disclosed on valuation will thus 
lead to a reduction in the contribution. The Group of Catholic 
Approved Societies (App. XVII, 2-3; Q. 8590-8591, 8611-8625, 
8645-8646) are in favour of the complete elimination of additional 
cash benefits, while the National Conference of Friendly Societies 
(App. XXVI, 14; Q. 10,650-10,660, 10,706-10,732), the Order of 
the Sons of Temperance (App. LXXXIX, 63-64; Q. 21,429- 
21,430), and the Edinburgh and Leith Friendly Societies’ Council 
(App. LXXXI, 3; Q. 90,673-20,679) support the view that a 
limit of 5s. should be placed upon the rate of increase of sickness 
benefit, having in view the importance of encouraging voluntary 
thrift and the more beneficial effects of treatment benefits on 
public health. The Loyal Order of Ancient Shepherds (App. 
XIV, 20) and the Standing Committee of Scottish Insured 
Women (App. XLVI, 5) make similar recommendations. The 
National Federation of Employees’ Approved Societies (Q. 13,390) 
oppose any statutory limitation of additional cash benefits, 
and think that Societies should be given full discretion 
in disposing of their own surpluses. In conclusion we 
quote the following from the evidence given before us 
by Sir Walter Kinnear on this subject :—* The view of 
the Department is that it is not desirable to place a 
statutory limit to the possible increase of standard rates of 
benefit. While most Societies limit themselves to 5s. increase 
in sickness benefit. there are some Societies for which as much