I have been watching this thread with much interest but waited to actually post for one simple reason. I wasn't sure what I thought abut the situation from a Masonic stance. From a secular and legal stance it is easy. They are human beings who deserve respect and kindness and equal protection and rights under the law. That's easy. That's just basic human decency. But our Order is based on religious principals. And many faiths are very intolerant of differences. So, as I do whenever I have a question about life that I do not know the answer to, I looked to the Rabbis.
For the full text of the Responsa I am quoting, you can go here:
http://www.starways.net/beth/tzitz.html I have pasted some of the pertinent paragraphs.
"Rabbi Waldenberg is a major authority in Jewish law. While Rabbi Moshe Feinstein was considered (and still is) the preeminant authority by most American Orthodox Jews, elsewhere, such as Israel, Rabbi Waldenberg is often considered to be of greater stature, particularly where medical issues are concerned."
"There are two responsa in question. The first, in Volume X, Part 25, Chapter 26, Section 6, is the end of a responsum dealing with transplants, particularly heart transplants. In this section, Rabbi Waldenberg sets out to deal with "other significant/organic alterations of the body, such as a person who changes from male to female, or vice versa." He mentions that such surgery is done in special cases, adding the comment, "(rare, of course)"."
"Important elements of this responsum are that a change of sex which results in the individual appearing mostly of a new gender actually changes that individual's gender in the eyes of Jewish law. And that this is obvious enough that it can end a marriage without either death or divorce, which is an extreme position in Jewish law. Anyone of lesser stature than Rabbi Waldenberg would be unlikely to get away with such an opinion."
"since the external organs which can be seen by the naked eye are the determinant in Jewish law."
"Rabbi Waldenberg recognized psychological factors as real ones. He recognized psychological trauma as a danger to a woman which could be grounds for permitting abortion even when no physical danger existed. In light of this, and in light of the terribly high rate of clinical depression and/or suicide among transexuals, a case might be made for permitting hormone therapy and surgery in certain cases. This is conjecture, however, and I don't believe it has been addressed in those terms and in context of Rabbi Waldenberg's determination that surgery actually results in a gender change."
Rabbi Waldenberg's views are very highly respected even if there are sometimes disagreed with. After reading his responsum on the matter, I think I would be much more inclined now to evaluate a transgender using the same criteria as a candidate who was born a man. Obviously, a Brother who underwent SRS to become a woman should leave our Order as it would not be proper for them to remain.