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 membership
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) emphasises
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 piresent,
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 administration
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 predominating
causes of the great disparities in the surpluses declared.
