Registrar of Friendly Societies

1061

18 8 5.

VICTORIA.

REPORT

OF THE

REGISTRAR OF FRIENDLY SOCIETIES

FOR TilE

YEAR ENDING 31sT DECEMBER, 1884.

PRESENTED TO BOTH HOUSES OF PARLIAMENT PURSUANT TO ACT 41 VICT. No. 590, SEc. 9,

tiy lllutbority: JOHN FER!lES, GOVF.RNMF.NT PRINTJm, MF.LBOURNE, No. 30, Al'PROXIMATE COST Ol!' REPORT. Prejlllratlon--Not given. Printing (2,160 cop!ea) 9 0 0 1063

REPORT OF THE REGISTRAR OF FRIENDLY SOCIETIES FOR THE YEAR ENDING THE 31sT OF DECEMBER, 1884, PURSUANT TO THE ACT No. 590.

This is the Seventh Report of the Registrar of Friendly Societies, presented pursuant to the Act No. 590. Appended hereto is a tabular statement of some of the principal matters tnmsacted by him during the year ending the 31st of December, 1884. In the year 1884, four new Friendly Societies and eleven new Building Societies were registered, and the existing Friendly Societies registered twenty-five new branches. No new Industrial and Provident Society was registered. The new Friendly Societies, comprising two dispensaries, a medical benefit society, and a society specially authorized hy the Attorney-General under section 4, sub-section (Ix.), of the Act No. 254, were not of a character to require any actuarial certificate. Two Friendly Societies were dissolved during the year by instrument of dissolution, the Protestant Mutual Benefit Society and the Prudential Mutual Sick and Medical Benefit ~ociety. The Protestant Mutual Benefit Society was dissolved in consequence of the very unfavorable report of Mr. Owen, the actuary appointed by the Government Statist to value its assets and liabilities, upon its financial condition. It was registered in the year 1877, with tables of contributions certified by Mr. G. E. Cowley. Its benefits were-in sickness, 20s. per week for the first six months, 10s. per week for the second six months, and 5s. per week afterwards, with £20 on the death of a member, and £10 on the death of a member's wife. To secure these benefits, contri­ butions were payable to the sick and funeral fund, graduated according to age at entry, from 2s. 2d. per month, at the age of 17, to 3s. 7-!d., at the age of 36. The rules prohibited the admission of a member above the age of 36. It appears by the report of Mr. Owen that, notwithstanding the rules to the contrary, members were, in fact, admitted at ages as high as fifty-four, and that no higher contributions were charged to any members than at the rate of 65s. per annum, which, according to the appro­ priation of the contributions made by the rules, would give only 2s. 8td. per month to the sick and funeral fund. The result is what might have been expected: after a duration of six years, the society is found to be in. a deficiency of nearly !Os. in the pound, and, seeing no prospect of making any change which would enable it to meet its liabilities, had no option but to wind up. The society comprised three branches. It had at one time as many as 111 members. At the time of the actuary's report, the number of members was 88, including unfinancial; and at the time of the dissolution, 60. The Prudential Mutual Sick and Medical Benefit Society was what in England would be called a collecting society, or an industrial assurance society, and was the first of the class started in Victoria. It occupied a position in some respects intermediate between the ordinary form of life assurance society and the ordinary form of benefit society, and in some respects differing from both. Like the benefit societies, but unlike the assurance societies, it gave relief in sickness; but, unlike the ordinary benefit societies, it gave the members assuring many options; thus, he might assure for any amount from 5s. per week to 40s. per week, for sick pay to continue during the whole duration of life or to c<>ase on his attaining the age of 60 or 70, and in the latter case, by assuring under the proper table, he might become entitled to an annuity to commence on the termination of the sick pay. Also the members might assure for sick pay th:tt, as in the ordinary benefit societies, would be reduced to one­ half after 26 weeks' sickness, or that would continue unabated throughout sickness of any duration. The endowment assurances could not exceed £200, but did not differ in principle from those granted by life assurance societies. Any sum not exceeding £20 could be assured for defraying the expense of the burial of a member, or the husband, wife, widow, or chilcl over the age of 10 years of any member, and a sum not exceeding £5 for defraying the expenses of the burial of the children of members under the age of 10 years. Here again members had an option wider than is granted by any of the existing benefit societies in Victoria, both as to the amount of the 4 funeral donation and as to the power of insuring it in the case of husband and children as well as in the case of wives. Another form of benefit offered which differed from anything given by the existing benefit societies, or, so far as the Registrar is aware, the existing life assurance societies, was a sum not exceeding £200 payable on the death of a member leaving a widow or children or other issue for the relief of his 1\-idow or children or issue. The contingency attached made the assurance differ from an ordinary life policy. It would have the disadvantage that, in the event of a member surviving his wife and issue, the assurance would be of little value to him; on the other hand, the amount of benefit (by way, at all events, of distribution of profits) would be increased in the contingencies in which it was most needed. The society agreed with the benefit societies, and differed from the assurance societies, in having contributions payable at short intervals, instead of merely yearly, half-yearly, or quarterly; hut differed from both in employing paid collectors, not merely to get new business, as in the case of the canvassers employed hy assurance societies, but to collect contributions throughout. Apart fi·om this latter feature, the expediency of which always seems questionable on account of the expense involved, there appears little doubt that the Prudential Mutual Sick and Benefit Society promised to fill a useful place among the institutions of Victoria, and the advantages it offered were appreciated by the public, as is shown by the fact thHt, though the society had not been two years in existence at the time of its dissolution, it comprised 1,368 members, of whom 1,035 had assured for the benefit of their widows and orphans to the amount of £30,099; 333 had assured for sums payable to themselves or members of their families on att:1ining particular ages, £23,183; and 326 had assured for sick pay to the aggregate of £240 per week. The society must, therefore, have received some thousands of pounds; but, at the time of dissolution, its assets ·were nil. Having regard to the amount of support obtained by the society, and to the suffieiency of its contributions (the society did not run long enough to try this, even had the contributions been insufficient), the failure must he attributed to the want of sufficient business skill in the management to surmount the difficulties which beset a mutual assurance society at its inception. Up to the end of the year 1883, the assets and liabilities of eleven societies were valued in the office of the Government St.'1tist. Five of these were large societies, i.e., the Manchester Unity Independent Order of Odd Fellows in Victoria, comprising 12,796 members; the United Melbourne District of the Ancient Order of Foresters, comprising 6,273 members; the Independent Order of Rechabites, comprising 5,211 members; the Independent Order of Odd Fellows, comprising 3,807 members; and the United Ancient Order of Druids, comprising 3,456 members. Six were small societies­ the Grand United Order of :Free Gardeners, comprising 583 members; the Portland District of the Ancient Order of Foresters, comprising 472 members; the St. Patrick's Society, Melbourne District, comprising 433 members; Court Unity, of the Ancient Order of Foresters, comprising 224 members; the Ovens and Murray Distriet of the Ancient Order of Foresters, comprising 209 members; the Protestant Mutual Benefit Society, comprising 78 members; and Court Ararat, of the Ancient Order of Foresters, comprising 51 members. Of the large societies, all showed a deficiency, ranging from 8·2 per cent., in the case of the Independent Order of Hechabites, to 28 per cent.,\n the case of the United Melbourne District of the Ancient Order of Foresters. Among the small societies, Court Unity showed a small surplus ; the others a deficiency, ranging from 8·9 per cent., in the St. Patrick's Society, Melbourne District, to 46·7 per cent., in the Protestant Mutual Benefit Society before referred to. One of the societies above named, the United Ancient Order of Druids, registered, during the year 1884, an alteration of its rules, increasing the contributions of its members to the sick and funeral fund by 6d. per quarter, amounting to an increase fi·om 6d. a week to about 6id. per week. It also increased the contributions of new members joining between the ages of 35 and 40 l)y 3d. per week, amounting to an increase from 6d. per week to about 9id. per week. The Grand United Order of Odd Fellows also registered an alteration in its rules during the year, raising the contributions to the Sick and Funeral Fund, in the case of its old members, from 6d. to about 7~d. per ·week, and, in case of new members, adopting a scale of contributions, graduated according to age at entry, from about 7id. per week at ages under 25 to ls. per week at 40. · 1065

5

Neither of the above-mentioned societies obtained a certificate of the actuary that the increased contributions were sufficient to meet the benefits. "\Vith these exceptions, the question of the sufficiency of the contributions in the Friendly Societies remains on the same footing as at the time of the Registrar's previous reports.* In his report for the year 1880, the Registrar called attention to the desirability of copying the Imperial legislation with respect to Trade Unions. Whether or not in pursuance of this suggestion, during the year 1884, an Act was passed for the legalization of Trade Unions ; and the Registrar of Friendly Societies was, by the second section, appointed Registrar under it. This Act is based upon the Imperial Statutes 34 & 35 Vict., c. 31, and 39 & 40 Vict., c. 22. Though based upon the Imperial Acts cited, the Victorian Act has not copied them exactly. Section 2 of the Act 34 & 35 Vict., c. 31, which provides that the purposes of any Trade Union shall not, by reason merely that they are in restraint of trade, he unlawful so as to render any member of such Trade Union liable to criminal prosecution for conspiracy or otherwise, has been omitted. This omission is emphasized by the 28th section of the Act No. 822, which is not to be found in the Imperial Acts, providin?, that nothing in this Act shall be construed to affect any rule of common law or any :Statute which creates or punishes any offence. The Act of 1871 was looked upon as a great boon by the English Trade Unions. It is alluded to by Mr. Trant, the author of an essay on Trade Unions which obtained a prize offered at the Trade Union Congress in 1873, and may, therefore, be supposed to express the views of the unions, in the following terms:­ " They had henceforth a charter of liberty, and under the light and freedom so given to them they began to flourish." It is a matter for consideration whether the Victorian Act, in the form in which it has passed, is likely to prove as beneficial. In order to deal with this question, it is necessary to consider the criminal law with respect to combinations of workmen in England and Victoria. At the time of the passing of the Trade Union Act 1871, the law of England on this topic was governed by the Act 6 Geo. IV., c. 129, an Act presumably in force in Victoria by virtue of section 24 of the Act 9 Geo. IV., cap. 83. This Act, which repealed a mass of previous legislation, contains a provision exempting from the punishment to which they had been liable at common law workmen agreeing among themselves as to what wages they would ask for their labour or what hours they would work. It contains other provisions, inflicting penalties of three months' imprisonment with hard labour on persons endeavom·ing by violence to the person or property, or by threats, intimidation, molestation, or obstruction, to force any workman to abstain from work or to comply with the rules of any club or association, or any manufacturer to alter the mode of conducting his business. In considering the effect of this Act, it must be coupled "ith the common law as to conspiracy, which renders any persons combining to do unlawful acts liable to punishment, even though the acts are not done, and of an amount not limited by the penalties imposed by the Act for offences by individuals. The common law as to conspiracy goes even further than this, in many cases rendering persons liable to punishment for combining to do acts which they might lawfully do as individuals. It must be noticed too that the Act 6 Geo. IV., cap. 129, though it protected from punishment workmen agreeing together as to the wages they

* Since writing the above, the Manchester Unity Independent Order of Odd Fellows has registered an alteration in its rules, adopting for new members a graduated scale of contributions, certified by Mr. Owen to be sufficient, and raising the contributions of the old members from 6d. to 7d. per week. The Bendigo United District of the Ancient Order of Foresters and the St. Patrick's Society have submitted rules for registration containing graduated scales of contributions, certified to be sufficient by Mr. Owen, the former limited to new members, the latter apparently extending to all members without exception. These matters, however, do not properly fall into the transactions of the year 1884. The tables of contributions and benefits of the Grand United Order of Odd Fellows, mentioned above, were submitted to Mr. Templeton, who certified merely that their adoption would not prejudice the financial condition of the society. The Registrar does not know whether or not 1\ir. Templeton was asked, or, if asked, would have certified that the contributions for new members were sufficient. If compared with the tables certified by Mr. Owen, it will be soon that, in the M anchcster Unity, the benefits and contributions are both larger, and in the St. Patrick's Society and Bendigo United District of the Ancient Order of Foresters the benefits are smaller and the contributions larger, than in the Grand United Order. 6 would ask for their own labour or the hours they themselves would work, did not protect other persons, such as the other members of a Trade Union combining to assist any workmen in obtaining any rate of wages or hours of work; and it was questionable whether such conduct did not constitute an unlawful conspiracy. Trade Unions, also, might have other objects in restraint of trade besides fixing a rate of wages or hours of work, as to which there was no protection. On the same day as the Trade Union Act 1871, and forming part of the same legislation, was passed the Act 34 & 35 Vict., cap. 32, to amend the criminal law. By that Act, 6 Geo. IV., cap. 129, was repealed, and other analogous provisions substituted, by which that portion of 6 Geo. IV., cap. 129, permitting agreement between 'Workmen as to the wages they would ask, or the hours they would work, was extended to exempt all persons from liability to punishment for acts on the ground that they were in restraint of trade, with specified exceptions, ,vhich were substantially the same as the acts subjected to penalties by 6 Geo. IV., cap. 129, save that the signification of the words threats or intimidation, molestation, and obstruction was made the subject of express definitions. The effect of these definitions was rather to confine than to extend the provisions of 6 Geo. IV., cap. 129, as interpreted by the courts; but, relating expressly to acts to be done hy a workman towards his master or fellow­ workman, had the appearance of making special legislation with regard to workmen from which the rest of the community was exempt. The English Trade Unions, accordingly, objected to it, and it was repealed hy the Conspim(~y rmd Protection of Property Act 187 5 ( 38 & 39 Vict., cap. 86 ), which is still in force. This Act, instead of the obnoxious provisions relati11g to workmen only, imposes penalties upon similar acts of molestation done by anybody with a view of compelling any one else to do or abstain fi·om doing auy act which such other person has a legal right to do or abstain from doing. The Act contains two other important provisions upon the subject of conspiracy ; one that an agreement of two or more persons to do anything in furtherance of a trade dispute shall not be indictable as a conspiracy unless the act itself -would be punishable as a crime; the other, that a person convicted of any such agreement to do any act which is punishable only on summary conviction shall not he liable to imprisonment for more than three months, or such longer time as may have been prescribed by Statute for the punishment of the offence when committed by one person. The Act contains other provisions for punishing a breach of contract of service which will have the effect of interrupting the public supply of gas or water, or the probable consequences of which will be to endanger human life or cause serious bodily injury, or expose valuable property to destruction or serious injury. The Victorian Act of last session, therefore, while it has enabled the Victorian Trade Unions to prosecute their officers or trustees for embezzling or misapplying their funds, has left the members of the unions in the same position as regards the eriminal law as the members of English Trade Unions were in on the passing of the Act 6 Geo. IV., cap. 129, which is worse than that of the English Trade Unions of to-day in the following points, that is to say :-'Without the benefit of the provision of the Trade Union Act 1871, that the purposes of a Trade Union shall not, by reason merely that they are in restraint of trade, be deemed to be unlawful, so as to render any member of such Trade Union liable to a criminal prosecution, or of the provisions of the Conspirac;lj and Protection tif Property Act 1875, exempting acts done in furtherance of a trade dispute from any imputation of criminality, if done iu combination, to which they would not have been liable if done by individuals, and, if criminal, from any further punishment when done in combination than that to which they would have been liable when done singly. The foregoing provisions of the English Acts of Parliament render lawful the purposes avowed by members of Trade Unions, and exempt from a too severe penalty an offence into which a zealous member or officer of a union may allow his too great zeal to lead him. I do not suppose that any member of a Trade linion would justify the threats, intimidation, molestation, or obstruction for which penalties are inflicted by 6 Geo. IV., cap. 129; but much difference of opinion might arise in any particular case as to whether such acts had been committed, and the judicial interpretation to which the Act has been subjected cannot be said to have tended at all to narrow its 1067

7 effect. It would appear, therefore, an advantage to the unions to have substituted for this vague language, liable to the risk of 'vhat they might think an oppressive interpretation, the much more definite and limited provisions of the Conspiracy and Protection qf P1·operty Act 1875. In the year 1884, the Imperial Parliament passed an Act, 47 & 48 Vict., cap. 41, amending the Act 37 & 38 Vict., cap. 42, upon which the Victorian Building Societies Act 187 4 was based, hy providing that disputes between a member of a Building Society and the society a.s to the construction or effect of a contract or mortgage should be settled in the ordinary course of law, unless the rules expressly provided to the contrary. The provisions of the Victorian Act as to the settlement of disputes differ somewhat from the Imperial Act on which it is based ; hut they appear to oust the jurisdiction of the comts.* It is a matter for the consideration of persons interested in Building Societies whether the> Imperial legislation should be copied in Victoria. In his report for the year 1879, the Registrar called attention to some matters in which the Act No. 590 appeared to need amendment.

JOHN BURSLEM GREGORY, Registrar ofFriendly Societies. 10 Selborne Chambers, 23rd June, 1885.

TABLE OF MATTERS TRANSACTED BY THE REGISTRAR OF FRIEN"DLY SOCIETIES IN THE YEAR ENDING THE 31sT OF DECEMBER, 1884. Societies Registereu:­ Friondly Societies 4 Branches of Friendly Societies ... 25

Total Friendly Societies and Branches 29 Building Societies 11 Industrial and Provident Societies 0

Total Societies Registered 40 Instruments of Dissolution Registered 6 Special Resolutions ... 0 Commencement of Dissolution and Winding-up of Building Societies 0 Termination of Building Societies 0 Notice of Clmnge of Name of Building Society ... 1 Amendments of Rules Registered:- Friendly Societies 33 Building Societies 8 Industrial and Provident Societies 0

Totn.l Amendments of Rules 41 Resolutions Appointing Trustees Registered 177 Notices of Change of Place Registered 25 Certificates given ... 162 ------" Compare Delaney v. Sanuhurst Building Society, 5 V. L. R. (L.) 189, and :Municipal Building Society v. Kent L. R. 9 App Cas. 260.

By Authority : Jomr Fl!llmllll!, Govemment Prillter, Melbourne.