MINORITY REPORT. 
307 
possible (Neil, Q. 4442). °° .... it is simply that the 
machinery is not there.”” (Kinnear, Q. 23,576.) 
39. In general the evidence proves conclusively that member- 
ship control ** is largely theoretical ”* (Kinnear, Q. 578) and that 
“as a general rule the great majority of insured persons take 
little or no interest in the government of their Society.” 
(Kinnear, Q. 515; see also Brock, Q. 959). The number of 
members necessary to form a quorum at a General Meeting of 
a Society, given in Table 3, and the following paragraphs of the 
evidence of the Department (Section B of Appendix I) em- 
phasises the absurdity of the so-called ** membership control ** :— 
23. It will be seen that at one end of the scale, eight 
members constitute a quorum in the case of the Mayfield 
Temperance Friendly Society (Approval No. 1274) a small 
local Society, consisting of 48 members. Yet even this 
restricted quorum could not be obtained in 1922. At the 
other end of the scale is the Liverpool Victoria Approved 
Society (Approval No. 119) which, with nearly half a 
million members, is required by its rules to have a quorum 
of 12, whether insured persons or not, including any officers 
and members of the committee present, who themselves 
number eight. 
24. Similarly with the large industrial Approved Societies, 
such as the National Amalgamated (Approval No. 125) and 
the Prudential Societies (Approval Nos. 136 and 137). The 
former has over two million members, and the requisite 
quorum is 50 in England, and 20 in Scotland, including the 
officers and Committee men, who themselves number about 
20. - 
The rules of the two large Prudential Societies each with 
over one million members, also provide that 50 members, 
including any officers and members of the Committee pire- 
sent, shall form a quorum.” 
40. This, considered together with the evidence given on this 
subject by representatives of the Industrial Societies (Q. 4515- 
4529, 4568-4743), leads us to the conclusion that the intentions 
of Parliament in this respect have not been fulfilled. 
Tae INCENTIVE TO (GOOD MANAGEMENT, 
41. We have shown that the members as such are not 
interested in the management of their Societies, but it is claimed 
that the officers are able so to develop their system of adminis- 
tration as to exercise a vital influence upon valuation results. 
42. We agree with our colleagues that thes effect of this 
incentive upon the valuation results is grossly exaggerated, and 
that other factors, occupational and otherwise, are the predomi- 
nating causes of the great disparities in the surpluses declared.