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APPENDIX  OF  CASES.

and  the  principle  established  by  the  following  case  is  applicable ­
  :—
In  the  matter  of  the  Royal  Liver  Friendly  Society  L.  R.,
5  Exch.  78.—Stamps;  exemption  from  duty;  friendly  society;
investment  of  the  funds  of  a  friendly  society  in  securities;
18  cfc  19  Viet.  c.  63,  s.  37.
The  Friendly  Societies  Act  (18  <£■  19  Viet.  c.  63,  s.  37)  does
not  exempt  from  stamp  duty  securities  on  which  the  funds  of
a  friendly  society  are  invested.
Case  stated  by  the  Commissioners  of  Inland  Revenue
under  13  &  14  Viet.  c.  97,  s.  14,  on  an  appeal  against  their
decision  as  to  the  liability  to  stamp  duty  of  a  deed,  transferring ­
  to  the  trustees  of  “  The  Royal  Liver  Friendly
Society”  a  mortgage  of  £1,100,  the  transfer  containing  a
declaration  that  the  money  was  advanced  out  of  the  funds
of  the  society.  The  commissioners,  whose  opinion  was
requested  under  13  &  14  Viet-,  c.  97,  s.  14,  and  16  &  17  Viet,
c.  59,  s.  13,  charged  a  duty  of  os.  6d.,  ad  valorem  (under
28  &  29  Viet.  c.  96,  s.  17),  and  5s.  6d.  progressive  duty,  and
from  this  decision  the  trustees  appealed.
The  society  was  one  established  previously  to,  but  then
regulated  by,  18  &  19  Viet.  c.  63,  which  amended  and
consolidated  the  law  relating  to  friendly  societies,  and
the  trustees  claimed  exemption  from  stamp  duty  under
sect.  37.
By  their  9th  rule,  it  is  one  of  the  duties  of  the  committee
of  management  to  negotiate  all  money  transactions,  order
and  direct  how,  when,  and  upon  what  security  the  funds  of
the  society  shall  be  invested,  and  execute  all  the  powers
vested  in  them  by  18  &  19  Viet.  c.  63  (ss.  17-19).
Kelly,  C.  B.—The  Act  exempts  from  duty  all  documents ­
  required  or  authorized  by  the  rules  of  the  society,
and  no  doubt  the  society  by  its  rules  authorizes  the  trustees
to  invest  their  funds  in  mortgages  of  real  estate.  But  the
question  is  whether,  looking  at  the  whole  of  sect.  37,  it
only  exempts  documents  required  or  authorized  for  the
purpose  of  carrying  on  the  internal  affairs  of  the  society,
or  required  or  authorized  for  the  purpose  of  bringing  the
society  into  a  position  to  carry  on  business  with  the  outside
world,  or  whether  it  also  exempts  all  documents  which
may  become  necessary  in  the  course  of  carrying  out  that
business.  We  should  have  expected  very  express  and
specific  language  if  it  had  been  intended  to  exempt  securities ­
  to  so  large  an  amount  as  on  this  view  the  statute
would  include.  But  on  the  contrary,  when  we  read  the
-  earlier  part  of  the  section  we  find  that  the  instruments
a