MINORITY REPORT. 
309 
RCRA Lor Se 
49. We consider it a fallacy to conclude that a high surplus 
at a valuation means good administration and that a deficiency 
provides a. primd facie case of bad administration. We think, on 
the contrary, that in general the Society with the heavier 
expenditure will be more likely to be actuated by the 
“incentive,” as it is generally understood, than the Society in 
which the expenditure is low. As an illustration : a Society 
carrying the hazardous risks of the miners being in deficit at a 
valuation would require to prove that its standard of administra- 
tion was of a high order before it could make a claim upon the 
Central Fund, whereas a Society composed of healthy lives could 
afford to, and would, undoubtedly, be less strict upon its 
members. 
50. The only evidence of an incentive alleged to operate in a 
direction consistent with the objects of the Act was given by 
a representative of Employers’ Provident Funds, who claimed 
that in order to reduce the expenditure on benefits the employers 
sought to improve working conditions. (Lesser, Q. 13,375.) 
VALUATION RESULTS. 
51. The large surpluses and the disparities in those surpluses 
have been referred to at length in the Majority Report, and 
certain developments and modifications designed to reduce the 
surpluses and to some extent the disparities are there recom- 
mended. 
52. We are of the opinion that the effect of extending the 
statutory benefits to absorb the moneys released by the new 
actuarial basis recommended by the Actuarial Committee will 
create a serious position for those Societies which, on the present 
financial basis, have little or no surplus. The operation of the 
Central Fund and the partial pooling of surpluses will probably 
enable all Societies to continue to provide the normal rates of 
benefits, but unless the equalising operations precede the valua- 
tion reports the position of certain Societies will still appear 
quite hopeless. =~ We agree that ‘‘ mo Society and no type of 
Society can claim a prescriptive right to a guaranteed existence,” 
but we think it proper to say that the gradual decrease in the 
membership of Societies below the average financial standard 
will ultimately compel their decease and that the only Societies 
which could afford to accept a transfer of engagements of such 
a Society are the largest, which are just those where member- 
ship control can be least effective. 
53. The emergence of surpluses and the consequent provision 
of additional benefits have emphasised the weakness of the 
system when viewed from the standpoint of the prevention and 
cure of sickness. It will be obvious that a Society is only able 
to provide additional benefits in proportion to the standard of 
Ean 
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