I beg leave to call the attention of the C. to the enclosed statement with respect to the Surplus Fund showing a balance against the fund for the closing year of £ 9.12.6. It is illegal to expend money entrusted for sickness for this but as there was a small balance in favour of the Fund last year the deficiency may be passed over.

During the following year if the Committee order the same payments as before the amount paid from the Surplus Fund will be as follows

As we have received this year for Honorary Subscriptions & Fines 8.5.6, there will be supposing that we have the same next year a balance against the Surplus Fund of 9.16.0.² Therefore the Doctor can be paid out of the Surplus Fund only for the first Q, & the members must pay the other 3 remainder. Even then there will be a balance of 7^s against the Surplus Fund & this must not be repeated another year.

I am sorry for this unprecedented state of affairs, but as long as I remain Treasurer, Trustee & Hon. Member, I can do nothing illegal.

Your obed servt. | C. D.

Dec 31^st | To the Council of the D. F. Club