up;

(e) the keeping of true accounts, open to the inspection of members, and an audit, at least annually, by a properly qualified auditor or auditors.

14. After the issue of the licence by the Board of Trade and the registration of the association under the Companies Acts, no supervision is exercised by the Board over the conduct of the business of the association. The Board's duties are thereupon confined to the consideration of

(a) any proposed alterations of the Memorandum and Articles of Association,

(b) any circumstances brought to the notice of the Board which might necessitate the exercise of their powers under sub-section (4) to revoke the licence.

15. We understand that the principal advantage to be gained by a charity by incorporation under this Act is that it is thereby able to hold land without the appointment of trustees, but in spite of what has been said as to the absence of any continuing control by the Board, there can be no doubt that the possession of a licence is commonly regarded as evidence, in some sort, that the charity is well-conducted and deserving of support.

16. Royal Charter.-Royal Charters granted in modern practice to charitable institutions follow substantially a model form which provides inter alia for an annual audit by a member, or members, of a recognised body or society of accountants and the presentation of accounts at an Annual General Meeting. The older charitable institutions established by Royal Charter are in practically all cases endowed charities and therefore are subject to the jurisdiction of the Charity Commissioners or the Board of Education.

17. The grant of a Royal Charter of Incorporation like the Board of Trade licence gives, among other rights, that of holding land without the appointment of trustees, but since it is wellknown that Charters are granted only after the very closest scrutiny of the objects of the charity and the standing of the petitioners, the possession of a Charter is, of course, a very much greater asset from the point of view of repute than the holding of a licence. No supervision is exercised over the affairs of such a charity so far as the Charter is concerned,

18. Private Act of Parliament.-A few charities (for example, King's College Hospital, St. George's Hospital and University College Hospital) are incorporated by Private Act of Parliament. The remarks we have just made with regard to the effect of the grant of a Royal Charter and the absence of any consequential supervision except that of the Charity Commissioners, apply equally to charities of this kind.

Health Institutions.

19. Voluntary Hospitals.-The Ministry of Health is brought into direct contact with a number of groups of charitable organisations concerned with its own particular work. Of these the voluntary hospitals form the largest group. In connection with the recent Government grant of £500,000, the Voluntary Hospitals Commission, which is closely associated with the Ministry, had until the grant was exhausted some measure of control over the voluntary hospitals which applied to participate in the grant, but this power was only exercised to a limited extent and chiefly in the direction of securing uniformity in accounting. The Minister of Health has no general power of control over hospital charities.

20. Venereal Disease Clinics. The clinics for the treatment of venereal disease are provided in association with voluntary hospitals, with which the local authorities make agreements. The Ministry of Health makes a grant to the local authorities of 75 per cent. of the cost of approved schemes and these funds in turn find their way to the voluntary hospitals, who provide the clinics. This part of the work of the voluntary hospitals is subject to inspection and is virtually under the control of the Minister, whose approval is required for all new capital expendi

Certain charitable organisations have also provided rescue homes for women suffering from venereal disease. These, too, are eligible for assistance from the Ministry's grant, and if they accept a grant, thereby come under supervision and control.

21. Tuberculosis Sanatoria.-The Ministry of Health has made capital grants to several voluntary organisations providing tuberculosis sanatoria, and in certain cases has taken a mortgage on the premises as security. Maintenance grants are made to local authorities who either provide sanatoria themselves or contract with voluntary organisations for the treatment of patients in approved institutions. The charges for the treatment of such patients are subject to the approval of the Minister, and the patients are visited by the Medical Officers of the Ministry. The accounts, as well as the general administration, are subject to examination at the Department's discretion.

22. Maternity and Child Welfare.-Many institutions with these objects are carried on by private persons and voluntary societies, in some cases for profit, e.g. nursing homes, lying-inhomes, and so forth. Under the Midwives and Maternity Homes Act, 1926, maternity homes are subject to registration by a local authority, and the Ministry of Health exercises control over institutions for Maternity and Child Welfare which are conducted as charities and apply for the Ministry's grant, and also over homes for children certified by the Ministry for the reception of poor law children.

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*

23. Lunacy and Mental Deficiency.-Under the Lunacy Act, 1890, there are a certain number of institutions called "regis-. tered hospitals," which are partly charitable institutions in the enjoyment of substantial endowments. Apart from the supervision exercised by the Charity Commissioners in respect of the endowments, the financial arrangements of these institutions do not come under the scrutiny of any central authority, but the treatment of patients is subject to rigid inspection by the Board of Control. Under the Mental Deficiency Act, 1913, voluntary organisations play rather a larger part. Some approved homes" and "certified institutions" are provided by voluntary agencies; the patients are, of course, subject to inspection by the Board of Control, and in the case of certified institutions, the local authority is entitled to the 50 per cent. Exchequer grant in respect of patients sent there. Lastly, a direct grant is paid by the Board of Control to the Central Association for Mental Welfare, a voluntary agency whose annual budget is carefully examined both by the Board of Control and the Ministry of Health.

Street Collections, War Charities and Charities for the Blind.

24. During the early part of the late War a number of cases of serious abuse and mal-administration in connection with charitable funds and societies owing their origin directly to the War came to light, and in April, 1916, your predecessor Sir Herbert Samuel appointed a Committee "to consider representa. tions which have been made in regard to the promotion and management of charitable funds for objects connected with the War, and to advise whether any measures should be taken to secure the better control or supervision of such funds in the public interest."

25. That Committee found upon investigation that it was desirable in the public interest that some control over street collections and public appeals on behalf of war charities should be instituted, and their recommendations were carried into effect generally by the War Charities Act, 1916, and as regards street collections by Section 5 of the Police, Factories, &c. (Miscellaneous Provisions) Act, 1916.

26. Street Collections.-Under Section 5 of the Police, Factories, &c. (Miscellaneous Provisions) Act, 1916, a police authority may make regulations with respect to the places where, and the conditions under which, persons may be permitted in any street or public place within the area of its jurisdiction to collect money or sell articles for the benefit of charitable or other purposes.

*The recent Royal Commission on Lunacy and Mental Disorder has recommended that the Board of Control should have more intimate powers in regard to the management of such institutions.

27. Model Regulations under the Act have been drawn up by the Home Office and regulations substantially in this form have been made by a large number of police authorities in England and Wales, including those of nearly all the borough police forces. In rural areas street collections are not, as a rule, a profitable means of obtaining funds; they are therefore infrequent and the necessity for controlling them is not acute.

28. The Model Regulations provide for a very extensive supervision of the collections with a view not only to ensuring that they are made only on behalf of reputable organisations and conducted without undue expense, but to the safeguarding of the actual money received up to the time it is handed over to the responsible organisers of the collection; and provision is now made for the publication of a statement showing the allocation in the case of collections made on behalf of a general object.

29. War Charities.-The War Charities Act, 1916, which is still in force, shortly stated, makes it unlawful to make any appeal to the public for donations or subscriptions in money or kind for any war charity unless the charity is registered as required by the Act. It does not apply to any collection in a place of public worship nor to any charity exempted by the registration authority on the prescribed grounds, namely, that the scope, duration or area of collection is so limited that registration is considered unnecessary.

30. The registration authority is

(a) in the City of London, the Common Council;

(b) in a Municipal Borough or Urban District, the Council of the Borough or District;

(c) elsewhere, the County Council.

31. The fee for registration is prescribed by the Act to be a sum not exceeding 10s., and was in fact fixed at 5s.

32. The registration authority is bound to register any charity having its administrative centre in its area unless satisfied that the charity

(a) is not established in good faith;

(b) will not comply with the conditions prescribed by the Act; or

(c) will not be properly administered;

and an appeal from a refusal by the registration authority to register any charity lies to the Charity Commissioners.

33. Every registration authority is required to give to each charity registered or exempted from registration a certificate of registration or exemption, to keep a register of all charities registered, refused registration or exempted from registration, and to send a copy of such register to the Charity Commissioners and to notify the Commissioners of changes entered in the particulars on the register. The Commissioners are required to

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keep a combined register of all such charities.

Matters of

detail are governed by Regulations made by the Commissioners subject to the approval of the Secretary of State.

34. The conditions on which registration is obtainable are contained in Section 3 of the Act, viz. :

(i) The charity shall be administered by a responsible committee or other body consisting of not less than three persons, and minutes shall be kept of the meetings of the committee or other body, in which shall be recorded the names of the members of the committee or other body attending the meetings.

(ii) Proper books of account shall be kept, and such accounts shall include the total receipts and the total expenditure of any collection, bazaar, sale, entertainment, or exhibition held with the approval of the governing body of the charity, and the accounts shall be audited at such intervals as may be prescribed by regulations under this Act, by some person or persons approved by the registration authority, and copies of the accounts so audited shall be sent to the registration authority.

(iii) All moneys received by the charity shall be paid into a separate account at such bank or banks as may be specified as respects the charity in the register.

(iv) Such particulars with regard to accounts and other records as the registration authority or the Charity Commissioners may require shall be furnished to the registration authority or the Charity Commissioners, and the books and accounts of the charity shall be open to inspection at any time by any person duly authorised by the registration authority or by the Charity Commissioners.'

35. If a registration authority is satisfied that a registered charity is not being carried on in accordance with the principles implied by its registration, it can remove the charity from the register. The Charity Commissioners must be notified of such a removal, and if requested, hear any appeal against the decision of the registration authority. If no appeal is lodged or the removal is upheld, the Commissioners have certain powers of dealing with the funds and of making a scheme for the regulation of the charity.

36. Under Section 7 of the Act powers are also given to the Commissioners for dealing with an unregistered war charity, if there is reasonable ground for believing that it is not being properly administered.

37. Any person guilty of an offence against the Act is liable on summary conviction to certain penalties, but no proceedings can be instituted except with the consent of the Commissioners.

38. Charities for the Blind.-Section 3 of the Blind Persons Act, 1920, applies the provisions of the War Charities Act to