contributions to the sick and aged, I was induced to request the DUKE OF NORTHUMBERLAND, then in London, to allow their by-laws to be laid before an experienced Actuary for his opinion.

Mr. GALLOWAY, therefore, was consulted, and as this gentleman has taken great pains, his opinion has been copied, and I now take the liberty of handing the same to you, in his GRACE's name, for the use of the Society of which you are Secretary.

It is so manifestly to the advantage of all Benefit Societies that their rules should be framed upon sound principles, and such as can be carried into execution, that it has been thought you would excuse this intrusion. It not unfrequently happens that members continue to make sacrifices all the best of their lives, under the promise that, in sickness and old age, certain advantages shall be gained, which, by the very structure of the rules, it is impossible to effect.

Should your own by-laws be framed upon such principles, it may be a satisfaction to the Society to be assured that they are so, by comparing them with Mr. GALLOWAY'S opinion; if they should not, the same opinion may put it into their power to rectify any errors, so that hereafter, when the funds are much called upon, neither disappointment nor distress may be experienced. I have the honor to remain,

A Friendly Society, established at Rothbury, in Northumberland, in 1824, having been broken up this year, through inability to meet the payments to which its funds were liable, by virtue of the rules of the society, thereby inflicting on individuals discomfort and hardship; in order to avoid similar results happening to another Society at Rothbury, called the "Odd Fellows' Society," it is desired by the Duke of Northumberland, that the by-laws of this latter Society should be submitted to Mr. GALLOWAY, that he may frame such rules and regulations respecting the payments to its members, (who are of the working-classes,) as may secure the stability of the Society, and prevent its members being deluded with expectations impossible to be realized.

There are 120 subscribers on the books of this Society, and the average number of actual members will be about 100.

The entrance money paid by each member is £1 1s. Od.; after the age of 35 years, and up to 40 years, the entrance money is raised, namely, a member 36 years old, pays £2 2s. Od.; 37 years old, £3 3s. Od.; 38 years old, £4 4s. Od.; and 39 years old, £5 5s. Od.; no person 40 years old is admitted a member.

Mr. GALLOWAY is requested to peruse the by-laws of the Society herewith left, especially the articles relating to the payments by and to its members; and to frame proper rules and regulations to secure the stability of the Society, and permanent benefit to its members.

(OPINION.)

I have perused the by-laws of the Odd Fellows' Friendly Society, at Rothbury. I am of opinion that the payments required to be made by the members are much too small, relatively to the benefits promised, and that the Society could not permanently exist under its present regulations. I have drawn up (see paper annexed A) new rules for regulating the payments by and to the members, and have added a few remarks, with a view to assist the members in forming a correct opinion as to the expediency of the alterations.

(Signed)

Amicable Society's Office, Serjeant's Inn,

August 12th, 1843.

THOMAS GALLOWAY.

(A.)-PROPOSED REGULATIONS.

I. Every member admitted into the Lodge under the age of thirty-six years, shall pay one guinea, by way of admission fee; if his age is between thirty-six and thirty-seven years, £1 11s. 6d.; if between thirty-seven and thirty-eight, £2 2s. Od.; if between thirty-eight and thirty-nine, £2 12s. 6d.; if between thirty-nine and forty, £3 3s. Od.; and no person shall be admitted into the Society whose age exceeds forty years.

II. Every member whose age at admission does not exceed thirty years, shall pay a weekly contribution of fourpence; if his age at admission exceeds thirty years, and does not exceed thirty-five years, he shall pay a weekly contribution of fivepence; and if his age exceeds thirty-five years, he shall pay a weekly contribution of sixpence.

III. Every member who, through sickness or lameness, is unable to follow his employment, shall be allowed seven shillings a week; but if his sickness or lameness be of such a nature as not to incapacitate him entirely from following his usual avocations, it shall be in the power of the officers of the Society to reduce the weekly allowance at their discretion, and according to the circumstances of the case, so that it shall be any smaller sum than seven shillings; and in all cases the weekly contributions shall be deducted from the weekly allowance.

IV. That when a member of this Society attains his seventieth year, his weekly contributions and his weekly allowance in sickness shall cease, and he shall be allowed an annuity of twelve pounds, in monthly payments, (or one pound per month,) during the remainder of his life.

V. That if at the end of any year, during the next ten years, it shall be found that the sums paid for allowance in sickness shall amount to one-half of the amount of the weekly contributions, the officers of the Society shall have power to increase the weekly contributions during the following year, or to call for an extraordinary contribution; so that not less than one-half of the weekly contributions, together with the interest on the accumulations, shall be added to the capital in any year during the next ten years.-[See concluding remarks.]

VI. That upon the death of any member, a sum not exceeding £

shall

be allowed for burial expences; but no sum allowed for burial expences shall be taken out of the common fund of the Society, but shall be raised by extraordinary contributions in the manner the Society shall determine.

REMARKS.

ENTRANCE MONEY.-I am not prepared to say that the graduated scale of admission fees above the age of thirty-six, in the existing regulations, is unfair, but as the practical effect of the scale must be to prevent persons above the age of thirty-six or thirty-seven from entering the Society, though they may be perfectly eligible in respect of health and habits, I recommend that the increase shall be half-a-guinea for each year exceeding thirty-six, so that the highest admission fee, (when the age is between thirty-nine and forty,) shall be £3 3s. Od.

WEEKLY CONTRIBUTIONS.-In order to make the weekly contributions more nearly equal to the value of the benefit, I recommend that the present contributions be raised a penny a week to all persons joining the Society between thirty and thirty-five, and another penny to all entering between thirty-five and forty; so that persons entering under the age of thirty, should pay fourpence a week, as at present; between thirty and thirty-five, fivepence a week; and between thirty-five and forty, sixpence a week. A more closely graduated scale can scarcely be necessary. It is to be understood that the weekly contributions are to be paid as well by those who are receiving an allowance in sickness, as by those who are in health, till the age of seventy; in other words, when a member is on the fund, his weekly contribution is to be deducted from his weekly allowance, until he reaches the age of seventy, when the weekly contributions are to cease altogether.

ALLOWANCE IN SICKNESS AND OLD AGE.-Supposing the scale of contributions and admission fees now proposed to be adopted, I am of opinion that the benefits which the Society can safely promise its members, do not exceed seven shillings per week in sickness, till the age of seventy, and a pension of one pound per month after the age of seventy, till the end of life, the weekly contributions ceasing, as above stated, after seventy; but strict attention to the improvement of the funds, and vigilance in resisting any ill-founded claim, will be necessary. It is proper to observe that, by sickness, I

mean BED LAYING sickness, or a total incapacity for labour. The second proposed rule leaves what is called the "WALKING PAY,' to the discretion of the officers, as it is left in fact by the printed by-laws.

DISCRETIONARY POWER LEFT TO THE MANAGERS.-It will be understood that the new regulations are not given with perfect confidence that they will answer the ends proposed. The data upon which the probable amount of sickness is calculated are by no means certain; and even if the average amount throughout the country were exactly known, the average in a small community like the Rothbury Society might still differ widely from the general average; and a succession of two or three years of unusual distress may, at any time, throw out the best grounded calculations. Hence, if the Society is to have a permanent existence, it is impossible (without risking great injustice,) to avoid leaving a discretionary power in the hands of the Managers. The Society having been recently formed, its average expenditure during the next ten or fifteen years should not exceed one-third of the weekly contributions. But as inconvenience might be produced by alarm taken without reason, I propose to make no call upon the members for extraordinary contributions, unless the yearly payment amounts to one-half of the contributions. The utter insufficiency of the existing regulations, which only allows extraordinary contributions when the funds in hand (I presume the total capital stock is meant,) fall below £100, will be seen from the following calculation:-Suppose a Society to consist of one hundred and twenty members, that each is thirty-five years of age, that no new member is admitted, and that none goes out otherwise than by death; out of the one hundred and twenty members now living, at the age of thirty-five, it may be expected that forty-two will attain the age of seventy, and the Society would then stand engaged to pay an annuity of twelve pounds, in monthly payments, to each of these forty-two persons, and would have no other assets than its accumulated capital. (taking interest at 33 per cent.) the value of twelve pounds a year, in monthly payments, is about £84. Therefore, the value of the forty-two annuities in question, would be £3528, so that the Society, in order to have the means of meeting its engagements, must accumulate, in the next thirty-five years, no less a sum than £3528.

But

In fact, even if no new members were to join the Rothbury Society, it ought to accumulate capital during the next twenty-five years at least; and if new members take the places of those who die, it will not feel the full weight of its liabilities for upwards of forty years.

EXPENSES OF MANAGEMENT.-No allowance has been made for expenses of management in the proposed scales of payments by and to the members. Such expenses, therefore, as are mentioned under articles XV., XVIII., and XXIII. of the by-laws, should be paid out of fines, or additional contributions. I strongly recommend the Society to submit periodically, (say at intervals of ten years,) a very accurate statement of its affairs to an experienced Actuary, who will point out the modifications which circumstances may render necessary or expedient.

(Signed)

Amicable Society's Office, Serjeant's Inn,

August 12th, 1843.

THOMAS GALLOWAY.

It will be obvious to the members of our Order that the above document is the production of one who, however well he may be qualified to frame regulations for similar Societies, is unacquainted with the workings of our Institution, and could only form his opinion from the laws of the particular Lodge which were submitted to him. We are not ourselves acquainted with the by-laws of the Rothbury Lodge, and cannot say anything to prejudice the soundness of Mr. Galloway's opinion upon them. There are certainly some things adverted to in it which have not an existence in the generality of Lodges, and the rate of payment, varying as it does, renders any calculation based upon one fixed weekly sum only of essential use to a portion of our community. Were an uniform system of payment and relief adopted, then it would be an easy matter for an experienced party to give an opinion upon the soundness of the Order, and to suggest regulations for its government, but as the case now

stands, it is impossible to do so. The locality in which a Lodge is situated, and the character of its members, must, in all cases, be taken into account; and what in one case would be an ample contribution, in another would be absolutely ruinous. In agricultural districts the rate of payment is much lower than in the manufacturing districts, and yet many of the country Lodges accumulate large funds.

Much depends not only upon the healthy state of the members of a Lodge, but upon their circumstances and disposition; for whilst some members will make a claim for a sickness of only a day or two's duration, others will labour under indisposition for weeks without making a demand upon the funds. Experience is one of the best teachers, and we generally find that there are amongst our members men possessed of sufficient judgment and forethought to enable them to take proper measures of precaution, and effect such alterations in their code of laws as may from time to time be required. The results of years have proved that our calculations have not been of an unsound nature, and no better argument in favour of our competency to govern ourselves can be brought forward than the present prosperous and universally flourishing state of the Order. Our space will not allow us to go into the subject at greater length in this Number of the Magazine, but we purpose to discuss the question more fully in our next.

DISTRIBUTION OF PRIZES.

We give below the decision of the Gentlemen appointed to award the Prizes to contributors. The numbers of the Magazine in which the articles appeared are those for July and October, 1842, and January and April, 1843. The opinion of the A. M. C. will be taken as to the proportions in which the Prizes shall be distributed to the contributors to the Magazines for July and October, 1843, and January and April, 1844. It will also be decided by the A. M. C. whether Prizes shall be given in future

or not.

Manchester, November 21st, 1843.

TO THE G. M. AND BOARD OF DIRECTORS OF THE INDEPENDENT ORDER OF ODD FELLOWS. GENTLEMEN,

AN impartial consideration of the respective merits of the literary contributions to the Odd Fellows' Magazine, submitted to our inspection, induces us to award the Prizes in the following order :

RESOLVED,

C. SWAIN.

SAMUEL BAMFORD.

W. MORT.

Magazine Committee, December 9th, 1843.

HENRY WHAITE, D. G. M., IN THE CHAIR.

I. THAT the decision of the Gentlemen appointed to award the Prizes be received by this Committee, and recommended for the sanction of the Board of Directors, in order that the sums awarded may be paid.

II. That a vote of thanks be presented to Messrs. Swain, Bamford, and Mort, together with a handsomely bound copy of the last volume of the Magazine.