THE
CANADIAN ANNUAL REVIEW
OF PUBLIC AFFAIRS
Copyright, Canada, 1921,
by THE CANADIAN REVIEW
COMPANY, LIMITED.
Printed by
R. DUNCAN & Co.
HAMILTON
THE HON. W. L. MACKENZIE KING, C.M.G., M.A., Ph.D., LL.D., M.P.
Appointed Prime Minister of Canada in 1921.
THE CANADIAN
ANNUAL REVIEW
OF
PUBLIC AFFAIRS
BY
J. CASTELL HOPKINS, F.S.S.. F.R.G.S., F.R.S.L.
1921 '-
TWENTY-FIRST YEAR OF ISSUE
ILLUSTRATED '"%?!, V\
TORONTO: THE CANADIAN REVIEW
COMPANY, LIMITED
1922
FOUNDERS OF
THE CANADIAN ANNUAL REVIEW
OF PUBLIC AFFAIRS
The late Lord Strathcona and Mount Royal
The late Brig.-Gen. The Hon. James Mason
Major-Gen. Sir Henry M. Pellatt, c.v.o., D.C.L., A.D.C.
The late Senator George A. Cox
Sir Joseph W. Flavelle, Bart., LL.D.
The late Cawthra Mulock
A. E. Ames, Esq.
Sir Edmund Boyd Osier
The late R. Wilson-Smith
The Rt. Hon. The Lord Shaughnessy, K.C.V.O.
A. J. Russell Snow, Esq., K.c.
The late D. R. Wilkie
Lieut.-Colonel J. Cooper Mason, D.s.o.
The late J. R. Bond
J. Castell Hopkins, Esq., F.S.S., F.R.G.S., F.R.S.L.
PREFACE
In our 21st year of publication, it is, perhaps, fitting that I
should express a word of appreciation to those who co-operated
in the difficult task of establishing such a Work as this in a
young country where devotion to material development is natur-
ally a first consideration. A tribute is due to the successive
Presidents of the Company in its first dozen years of existence
—the late Senator James Mason and Maj.-Gen. Sir Henry M.
Pellatt — and to the late Lord Strathcona and Mount Royal whose
support and appreciation of the publication were shown at its
inception and continued until he passed away. In the re-organ-
ization of the Company two years ago, a number of gentlemen
assisted, to whom I should like to express a word of sincere ap-
preciation— Mr. A. E. Ames, Mr. H. P. R. Temple, Mr. Hume
Blake, K.C., Mr. R. A. Stapells, Mr. G. Frank Beer, Mr. Roy Mac-
Dougall of Toronto, Mr. Walter Woods and Lieut.-Colonel C. R.
McCullough of Hamilton, Mr. Innes Hopkins of Vancouver.
Since 1901, when my first volume appeared, Canada has gone
through many and varied stages of evolution. The ever-
changing developments of that twenty-one years in the life of
our youthful nation have been recorded in The Canadian Annual
Review and, with a continuance of the generous and ever-growing
support accorded to the Work in recent years, there should be
found at the end of this Century an equally full record of Can-
ada's growth and Canada 's life in The Canadian Annual Rreview
of that time. Annual publications in Great Britain — though not
quite so elaborate in character as this — have, in more than one
case, passed the century or the half-century mark; the perman-
ent value of The Canadian Annual Review has often been men-
tioned, and it is not difficult to estimate the fundamental interest
and, may I say, value, of such a publication— if we had it— for
the years 1800 to 1821, or through the days when Confederation
was in the melting pot of public thought.
There were three lions in the path of publication in the
years following 1900. There was, first, the obvious financial
difficulty, which was overcome by generous support and vigorous
effort. The second was the reasonable and widespread doubt
as to whether any one writer could deal with current politics
and history in an absolutely impartial manner; the answer to
this doubt lay in the splendid recognition accorded the Work
by Governments and Legislatures of all phases of political
thought in Canada. The third was the natural scepticism of
Libraries — Public, Reference, University, etc. — in this and other
countries, as to the permanence of the publication; this could
only be removed by time and the doubt has long since passed
into a condition of world-wide Library patronage.
It may be noted, in passing, as an illustration (1) of the
growing interest taken abroad in Canada's history and con-
stitutional development and (2) of a special form of public
service for this Work that, four months ago, the late Arthur
Griffith, President of the Bail Eireann, Dublin, cabled the Author
requesting a complete Set of the 20 volumes of The Canadian
Annual Review for the use of his Free State Government.
May I add that some important matters relating to 1920
are dealt with in this volume — notably the West Indies Confer-
ence of that year, the Imperial Press Conference, and the Con-
gress of Chambers of Commerce of the Empire. Consideration
was unavoidably omitted from the 1920 issue.
J. CASTELL HOPKINS.
Toronto,
Aug. 15, 1922.
TABLE OF CONTENTS
« FINANCIAL CONDITIONS OF 1921
Page
The World Situation; Problems and Progress of Reconstruction 17 |
Financial Conditions in Canada During 1921 22 i
National Finance and Taxation; Sir Henry Drayton's Budget 26
The Banks and the Country: Policy, Conditions and Appointments of the
Year 33
The Merchants Bank of Canada; Absorption by the Bank of Montreal 39
The Banks and the Farmers; Canadian Banking Interests Abroad 43
Trust and Loan Companies; Mortgage Interests of Canada 50
Financial Appointments of the Year 53
Insurance Interests of Canada: Life, Fire, Fraternal and Other Companies. 53
Group Insurance in Canada 57
Insurance Meetings of 1921 59
Fraternal Insurance and Assessments 62
Fire Insurance Interests of Canada 65
Important Insurance Appointments of 1921 '....'. 69
Miscellaneous Forms of Insurance 70
Deflation of Prices in 1921 ; National Influence of this Condition 72
INTERNATIONAL RELATIONS OF CANADA
The National Status of Canada; Discussions and Environment of the Issue.... 75
Canada and the League of Nations: A First Essay in Foreign Policy — 1920
and 1921 82
Canada and the Japanese Treaty: A 2nd Essay in Foreign Affairs 94
Canada and the Origin of the Washington Conference: A 3rd Essay in Foreign
Affairs 102
The Washington Conference: Canada's 4th Essay in Foreign Affairs 107
The Calling of the Washington Conference 108
The United States Policy and Programme Ill
British Policy and Action 113
Canada and the Dominions at Washington 116
Conference Delegates Visit Canada 119
The Results of the Conference 121
The Relations of Great Britain and the United States in 1921 124
General Relations of Canada and the United States 129
1921 Incidents in American- Canadian Relations 133
The Panama Canal and Canadian Interest in the Tolls Question 137
>The Question of a Canadian Minister at Washington; The Attitude of other
Dominions 140
• Fiscal Relations of Canada and the United States; American Tariff Bills and
Reciprocity Conditions 144
The U.S. Emergency Act of 1921 146
The Proposed Permanent U.S. Tariff 148
[3]
t>
4 THE CANADIAN ANNUAL REVIEW
PAGE
The International Joint Commission; St. Lawrence Power and Waterways
Project 153
Canadian Water-Powers and Waterways 155
Plans for Deepening and Developing the St. Lawrence 156
Opposition to the Waterways Plan 159
CANADA AND ITS RELATIONS WITH THE EMPIRE
^ British Conditions in 1921 Touching Canada and the Empire..... 162
The King and the Royal Family 163
The Prince of Wales in England and India 164
Progress of Protection in Britain 167
British Incidents of Imperial Importance 168
Nationalism in the Empire: Special Developments of 1921 169
!j> Nationalism and the so-called Independence of Canada 169
Nationalism hi Australasia during 1921 171
Nationalism in South Africa — The Policy of Hertzog 172
Nationalism in India — The Policy of Gandhi 174
Nationalism in Egypt — The Policy of Zaghlul 178
Is Empire Interests and Incidents Affecting Canada in 1921 180
Administration of Palestine: Canada and the Jews 184
Titles in Canada: Grants by Foreign Rulers 187
Newfoundland in 1921 : Canadian Relations with the Island Dominion 188
Canada and the British West Indies: The Conference of 1920 193
Canada and Cable News Conditions: The Imperial Press Conference of 1920 197
The Chambers of Commerce Congress, 1920 205
vl The Imperial Conference of 1921 ; Influence of the Canadian Premier 210
Congress of Empire Universities; Imperial Teachers' Conference; Rhodes
Scholars of the Year 222
J The Empire Veterans' Conference of 1921 and Other Imperial Meetings 228
Appeals to the Privy Council; Arguments For and Against Abolition 232
The British Cattle Embargo Issue; Report of the British Royal Commission.. 234
War Echoes of 1921; Canadian Memorials to the Dead 240
The Governor-Generalship of Canada: The Duke of Devonshire and Lord
Byng of Vimy 245
^ Imperial Incidents of Canadian Concern 252
CANADA AND THE IRISH QUESTION
' The Irish Situation in 1921 ; World-Wide Aspect of the Problem 256
The Sinn Fein Position and War Action; The British or Loyalist Reprisals 260
The British View of Ireland: The British Government and Sinn Fein 268
The Position of Ulster; A New Parliament and New Conditions 272
The Church of the Majority in Ireland; Its Official Attitude in 1920-21 276
Attitude and Opinions of Archibishop Mannix 280
The American Hierarchy and Ireland 282
Actions of the Irish Hierarchy in 1921 283
Ireland and the United States; Irish-American Action and Opinions'.'' 285
/ De Valera's Tour of the United States .. 286
_J American Politicians and Irish Affairs ".I 287
The Irish- American Committee of 100 292
Irish- American Incidents of 1921 294
TABLE OF CONTENTS 5
PAGE
The 6th Irish Home Rule Bill: The Peace Agreement of 1921 296 -
Canada and Ireland: Opinion and Action in the Dominion 305
The Self -Determination League for Ireland 306
Ulster and the Orange Order in Canada 310
THE GOVERNMENT OF CANADA IN 1921
The Meighen Government; Policy and Administration in 1921 315 *
Government Departments, Commissions and Appointments during the Year.. 32 1
Dominion Government Appointments of the Year 330
1921 Appointments to the Senate of Canada 330
Judicial Appointments of the Year 330
The Liberal Party in 1921; Hon. W. L. Mackenzie King as Leader 331 ^
The Militia Department and Military Conditions of 1921 333
Appointments to Permanent Force, Staff and Militia 341
To Command Re-organized Regiments of the Militia 341
The Department of Soldiers' Civil Re-Establishment; Questions of Pension
and Soldiers' Settlement 342
The G.W.V.A. and Other Veteran Associations 345
The Government and Naval Conditions; The Navy League of Canada 350
The 1921 Session of Parliament; Bye-Elections of the Year 355
Chief Debates in the Senate during 1921 Session 359
Chief Debates in the Commons during the Session 359
Canadian Nationals: Citizenship and Nationality 366 •/
Legislation and Bye-Elections of the Year 367
The Government Policy Toward Labour; Senator Robertson and His De- ^
partment 369/
TRANSPORTATION INTERESTS AND PROBLEMS
The Railway Problem in 1921; General Policy of the Government 377
The Board of Railway Commissioners: Policy and Action in 1921 381
The Railways and the Freight Rates' Question 381
The Railways and Wages; The Telephone Judgment 385
The Canadian National Railways in 1921: Government Problems and Mr.
Hanna's Policy 389
Sir Joseph Flavelle's Proposed Policy 395
The Grand Trunk and the Government; Acquisition and Arbitration; The
G.T.P. in 1921 397
The Grand Trunk Arbitration Award 398
The Canadian Pacific Railway: Its National Position and Progress 405
The Railway Proposals of Lord Shaughnessy 409
The Question of Public Ownership 412
The Canadian Merchant Marine in 1921 414
The Canadian Pacific Steamships Ltd. 417
The Canada Steamship Lines, Ltd 419
Shipping Notes and Incidents of 1921 420
Canadian Canal Statistics and Conditions in 1921 422
The Electric Railways of Canada; Toronto and Other Street-Car Lines 425
Toronto Transportation Interests in 1921 425
The Montreal and Winnipeg Street Railways 427
The British Columbia and Other Electric Companies 429
6 THE CANADIAN ANNUAL REVIEW
PAGE
Aviation in Canada: General Conditions and Progress During 1921 431
The Highways of Canada: The Better Roads Question in 1921 436
The Canadian Good Roads Association 439
Canadian Motor and Automobile Interests 441
Wireless Developments of 1921 443
THE DOMINION GENERAL ELECTIONS OF 1921
Mr. Meighen and the Government's Policy: Issues of the Conflict 445 ^
Policy of the Liberal Opposition; Mackenzie King as Leader of the Party 456 /
Policy of the Progressive Party; Mr. Crerar and the Farmers 465-^
The Progressives and the Grain Enquiry 467
The Clark-Crerar Controversy and the Elections , 473
Mr. Crerar's Platform, Policy and Manifesto 474
The Issues in Quebec: Sir Lomer Gouin and the Liberals 481
Sir Lomer Gouin's Campaign 483
The Liberals and Nationalists in Quebec 486
Mr. Meighen and the Government Campaign in Quebec 488
Incidents of the Campaign: The Munitions, Ford and Riordon Questions 491
Mr. Mackenzie King and the Munitions Question 495
The Ford Motor Car and the Tariff 497*-
The Riordon Taxes and Government Action 49<
Women hi the Elections; Labour Issues of the Day 502
Labour Issues and Mr. Murdock's Campaign 504
Result of the Election: Defeat of the Meighen Government 5(
Formation of the New Government: Mackenzie King as Prime Minister 519
PROVINCIAL AFFAIRS IN ONTARIO
The Drury Government in Ontario: Policy and Administration in 1921 525
The Drury-Morrison Controversy and the Government 526
Political Issues and Administration 529
Finances and the 2nd Budget of the Hon. Peter Smith 538
Political and Other Incidents of 1921 542
Ontario Government Appointments in 1921 545
Mr. Raney as Attorney-General of Ontario; Questions of Prohibition and
Race-tracks 546
The Attorney-General and the O.T.A 546
The Liquor Importation Referendum 550
The Attorney-General and the Race-Tracks 557
Prohibition Incidents and Politicaf Affairs 560
Ontario Agriculture; Mr. Doherty and His Department; The U.F.0 562
Mr. Doherty's Visit to England 565
The Ontario Agricultural Banking Scheme 566
^ Mining in Ontario; The Porcupine and Cobalt 576
"The United Farmers of Ontario 579
• The United Farmers' Co-Operative Company 582
The United Farm Women of Ontario 584
The Highways of Ontario and Mr. Biggs' Policy; Mineral Production in 1921.. 571
TABLE OF CONTENTS 7
PAGE
Education in Ontario; Government Policy, Separate Schools and the Uni-
versities 585
Educational Statistics of Ontario, 1920 586
Policy of the Minister of Education 587
Revival of the Separate School Question 591
The University of Toronto in 1921 597
Educational Interests and Incidents : 601
Sundry Institutions of Higher Education in Ontario 605
Penetanguishene Tercentenary Celebration 607
The Ontario Hydro-Electric Power Commission; Sir Adam Beck and the
Radials 608
The Power Commission and the Legislature 610
The Hydro-Electric Railway Commission of Enquiry 615
The Chippawa-Queenston Power Canal 620
The Toronto Radials and the Power Commission 622
Ontario Legislation in 1921; Lake of the Woods Question and the Timber
Investigation 624f
QUEBEC AND THE MARITIME PROVINCES
The Tashereau Government in 1921; Politics and Administration 640
Quebec Legislation of 1921; Prohibition and the Temperance Act 654
Government Control of the Liquor Traffic 7.... 660
Education in Quebec; McGill and the University of Montreal; The Despatie-
Tremblay Marriage Case 666
Agriculture and Industry; General Resources and Production 680
The United Farmers of Quebec 683
Nova Scotia: Its Position, Government, Policy, Educational System and
Other Interests : 684
Administration and Legislation of 1921 687
The Nova Scotian Legislature; Mr. Tory's Budget 697
Educational Conditions in Nova Scotia 703
Nova Scotia Institutions of Higher Education 704
The Nova Scotia Anniversary Celebrations of 1921 706
The United Farmers of Nova Scotia 708
New Brunswick in 1921; Production, Government, Legislation and General
Position 709
The Foster Government of New Brunswick 711
Provincial Finances; Mr. Hetherington's Budget 722
Legislation and Politics in New Brunswick 723
Educational Interests of New Brunswick 729
The Universities of the Province 730
The United Farmers of New Brunwsick 731
Events and Conditions in Prince Edward Island during 1921 734
THE PROVINCES OF MANITOBA AND SASKATCHEWAN
The Government of Manitoba: Politics and Legislation in 1921 739
Manitoba Government Appointments of 1921 751
Financial Conditions in Manitoba; Mr. Brown's Budget; Legislation of the
Year .. 751
8 THE CANADIAN ANNUAL REVIEW
PAGE
Manitoba Rural Credits Development 7
The Manitoba Farm Loans Association -. 75<
The Provincial Savings Institution 7
Manitoba Legislation and Politics in 1921 758
Agriculture and Mining in Manitoba; The United Farmers in 1921; Educa-
tional Conditions of the Year 766
The United Farmers of Manitoba 768 -
The United Farm Women of Manitoba 772
The Public Schools of Manitoba 772
The University of Manitoba and other Institutions 775
The Martin Government in Saskatchewan: Administration, Finance and
Legislation 777 '
Changes in the Provincial Government 780
Administration of the Departments 783
Financial Conditions of the Province 791
The 1921 Meeting of the Legislature 793
Saskatchewan Agriculture in 1921 and Work of the Department; Educational
Conditions of the Year 794
The Wheat Marketting and Better Farming Commissions 798
Educational Conditions in Saskatchewan 800
The University of Saskatchewan 804
The Saskatchewan Grain Growers' Association 806^
The Women's Section, S.G.G.A 808
The Saskatchewan General Elections: The Martin Government Sustained.... 808
THE PROVINCES OF ALBERTA AND BRITISH COLUMBIA
Alberta: Agricultural and Mining Conditions of 1921 ; The United Farmers.... 814
Irrigation Problems and Progress 819
Alberta Mineral Interests of 1921 822
The United Farmers of Alberta 824
The United Farm Women of Alberta 826
Last Days of the Stewart Government; Administration and Legislation in
1921 827
The Temperance Question in Alberta 829
Session of the Legislature in 1921 832
Financial Affairs in Alberta; Educational Interests and Progress 839
Educational Interests of Alberta 842
The University of Alberta 846
The Elections and Defeat of the Stewart Government; Formation of the
Greenfield Cabinet 848
The Policy of the Stewart Government 848
The Campaign Policy of the Farmers 850
The Result of the Alberta Elections 853
Formation of the Greenfield Government 855
Reports of the Government Departments 857
British Columbia; Government, Administration and Legislation in 1921 859
The Ministers and Their Departments 863
The 1st Session of the Legislature in 1921 869
The 2nd Session of the Legislature in 1921.... .. 872
TABLE OF CONTENTS 9
PAGE
B.C. Government Control of Liquor; Financial Affairs and Mr. Hart's
Budgets 876
Education and Other Interests of the Year in British Columbia 885
The University of British Columbia 886
The Oriental Question at the Coast 887
British Columbia Resources, Development and Business in 1921 889
B.C. Mines and Mineral Production 890
B.C. Lumber and Fisheries in 1921 892
The United Farmers of British Columbia 895
Position and Production of the Yukon 896
THREE IMPORTANT ORGANIZATIONS
Canadian Clubs 898
Young Men's Christian Associations 899
The Canadian Manufacturers' Association 900
Canadian Books in 1921 14
Canadian Obituary for 1921 902
Index to Names
Index of Affairs
10 THE CANADIAN ANNUAL REVIEW
FINANCIAL SUPPLEMENT
PAGS
The Banks of Canada; A Great National System ................................................ 909
Financial Position of Canada; Annual Addresses and Reports of the Bank of
Montreal; Addresses by Sir Vincent Meredith, Bart., President of
the Bank of Montreal and Sir Frederick Williams-Taylor, D.C.L.,
General Manager of the Bank .................................... ............................ 912
A Great Canadian Institution; The Canadian Pacific Railway; Presidential
Address of E. W. Beatty, K.C., LL.D., and Reports of the Company; 923
Canada and the West Indies; Annual Addresses and Reports of The Royal
Bank of Canada; Addresses by C. E. Neill, General Manager, Sir
Herbert S. Holt, President and E. L. Pease, Vice-President and
Managing- Director .......................................... ............................................ 933
A Great Business Organization; The Canadian Manufactures' Association;
Address by President W. S. Fisher; Extracts from Reports of
Committees ................................................................................................ 946
An Important Canadian Institution; Annual Report of The Imperial Bank
of Canada ................................................................ • ........................ . ........... 939
A Great Insurance Record; Annual Statement of the Sun Life Assurance
Company of Canada ................................................................................ 962
A Leading Canadian Institution ; 40th Anniversary Addresses and Reports of
the Toronto General Trusts Corporation; Addresses by the Hon.
Featherston Osier, K.C., D.C.I,., President, A. D. Langmuir, Dir-
ector and General Manager, and Major-General Sir John Gibson,
K.C.M.G., Vice-President ......................................................................... ... 965
EDUCATIONAL SUPPLEMENT
The Department of Education of the Province of Ontario, 1876-1922
The Canadian Club Movement; From Annual Proceedings, Association of
Canadian Clubs
University of Toronto, Toronto
St. Andrew's College, Toronto
University of Saskatchewan, Saskatoon
Thomas Nelson & Sons, Limited, Toronto
Lower Canada College, Montreal
Charles R. McCullough & Co., Hamilton
Houston's Standard Publications, Toronto
Heaton's Agency, Toronto
The Canadian Annual Review of Public Affairs, Toronto
Canadian Educational Institutions....
ADVERTISEMENTS 1 1
ADVERTISEMENTS
NEWFOUNDLAND, THE NORWAY OF THE NEW WORLD
CONFEDERATION LIFE ASSOCIATION
THE DOMINION BANK, TORONTO
THE NATIONAL PARK BANK OF NEW YORK
WOOD, GUNDY & COMPANY, TORONTO
THE HANOVER NATIONAL BANK, NEW YORK
WESTERN ASSURANCE COMPANY
BRITISH AMERICA ASSURANCE COMPANY
THE NATIONAL CITY COMPANY, LIMITED
CANADA PERMANENT MORTGAGE CORPORATION
LONDON GUARANTEE AND ACCIDENT COMPANY, LIMITED.
THE CHATEAU LAURIER, OTTAWA
CHATEAU FRONTENAC, QUEBEC
CANADIAN NATIONAL RAILWAYS....
12
THE CANADIAN ANNUAL REVIEW
ILLUSTRATIONS
PAGE
THE HON. W. L. MACKENZIE KING, C.M.G., M.A., Ph.D., LL.D., M.P. Ap-
pointed Prime Minister of Canada in 1921 Frontispiece
GENERAL THE LORD BYNG OF VIMY, G.C.B., G.C.M.G., M.V.O., LL.D. Ap-
pointed Governor-General of Canada in 1921
HER EXCELLENCY, THE LADY BYNG OF VIMY
THE CANADIAN COAT OF ARMS; Approved by Proclamation of His Majesty
the King, November, 21, 1921 16
THE RT. HON. SIR ARTHUR JAMES BALFOUR, K.G., O.M., F.R.S., M.P. Given
the highest Order of British Knighthood in 1921; Chairman of
British Empire Delegation at the Washington Conference 464
THE HON. WILLIAM STEVENS FIELDING, M.P., LL.D., D.C.L. Appointed
Dominion Minister of Finance in 1921 48
THE HON. JAMES MURDOCK, M.P. Appointed in 1921 Dominion Minister
of Labour : 48
THE HON. SIR LOMER GOUIN, K.C.M.G., K.C., LL.D., M.P. Appointed
Dominion Minister of Justice, 1921 80
THE HON. RODOLPHE LEMIEUX, K.C., LL.D., M.P. Announced in 1921 as the <
coming Speaker of the House of Commons 80
SIR CAMPBELL STUART, K.B.E. An Eminent Canadian in London; Ap- -
pointed Managing Director of "The Time" 208
EDWARD ROBERT PEACOCK. A Canadian Financier in London; Appointed
in 1921 a Director of the Bank of England 208
ARTHUR GRIFFITH. Elected President of the Dail Eireann, Dublin in 1921 ;
An elected Member of the Parliaments of Great Britain, Ulster and
Southern Ireland 304
THE RT. HON. SIR HAMAR GREENWOOD, Bart., K.C., M.P. Secretary of
State for Ireland, 1920-21 304
GEORGE CHARLES COPPLEY. Mayor of Hamilton in 192 1 ; Elected President
of the Association of Canadian Clubs 400
LIEUT.-COLONEL CHARLES ROBERT McCuLLOUGH. Founder of the Can-
adian Club Movement; Hon. President Association of Canadian
Clubs 400
JOHN MURRAY GIBBON. Elected in 192 1 President of the Canadian Authors'
Association; well-known Novelist 752^ o
MRS. NELLIE L. MCCLUNG, M.L.A. Distinguished Canadian Novelist and / *
Publicist 7521^
THE HON. FRANK CAMPBELL BIGGS, M.L.A. Minister of Public Works and
Highways for Ontario 624
THE HON. PETER SMITH, M.L.A. Provincial Treasurer of Ontario, 1920-2 1 .... 624
THE HON. JACOB NICOL, M.L.A. Appointed in 1921 Provincial Treasurer of
Quebec 560
ALBERT EDWARD PHIPPS. Appointed in 1921 General Manager of the
Imperial Bank of Canada 560
THE HON. JOHN ARCHIBALD MAHARG, M.P. Appointed in 1921 Minister of
Agriculture for Saskatchewan.... ,.. 784
ILLUSTRATIONS 13
PAGE
JAMES COBDEN MITCHELL, of Dahinda, Sask. Twice winner of the World's
Prize and Sweepstakes, Chicago International Hay and Grain
Show, for best Hard Red Spring Wheat 784
THE HON. HERBERT GREENFIELD, M.L.A. Appointed Prime Minister of
Alberta in 1921 816
THE CITY OF PHOENIX, B. C. Produced $65,000,000 worth of gold,
copper and silver between 1900 and 1919; Dis-incorporated and
abandoned in 1921 with all Municipal debts and obligations paid 688
JAMES J. MORRISON. Secretary of the United Farmers of Ontario and a
Leader in the Farmers' Movement of that Province 688
THE LATE JOHN WOODBURN LANGMUIR. General Manager of the Toronto
General Trusts Corporation, 1882-1915, and Vice-President of the
Company 964
SIR FREDERICK WILLIAMS-TAYLOR, D.C.L. General Manager of the Bank
of Montreal; Elected in 1921 President of the Canadian Bankers'
Association 908
WILLIAMS SHIVES FISHER. President of the Canadian Manufacturers Associa-
tion in 1920-21 946
JOHN Ross SHAW. Elected President of the Canadian Manufacturers
Association for 1921-22 946
JAMES KAY MACDONALD. Founder of the Confederation Life Association
and President since 1912; Celebrated in 1921 his 50th Anniversary
of Connection with the Company ' 464
CANADIAN BOOKS OF THE YEAR
HISTORY, POLITICS, BIOGRAPHY AND ECONOMICS
The United States and Canada Prof. George M. Wrong Toronto:
.B^ of Commerce (Edited) Toronto:
.Toronto:
.Toronto :
The Parish Register of Kingston,
Upper Canada, 1785-1811 A. H. Young Kingston:
Trinitv War Book Oliver Hezzlwood Toronto:
McGiU's Heroic Piist Maude E. Seymour Abbott Montreal:
History of the Canadian Bank of
Commerce, Vol. I Victor Ross Toronto:
McGill and its Story Cyrus MacMillan Toronto:
University of Toronto, Roll of
Service, 1914-18 G. Oswald Smith Toronto:
A History 'of English Canadian Camb-
Literature to Confederation Ray Palmer Baker ridge:
Historical Statistical Survey of
Education in Canada Dominion Bureau of Statistics... Ottawa:
Policing the Plains Rev. R. G. MacBeth Toronto:
Letters from the Front; Being a
Record of the Part Played by
Officers of the Canadian Bank
of Commerce in the Great War(Ed.) Charles Lyons, W. S.
1914-1919 Duthie
15th Report of the Bureau of
Archives of Ontario Alexander Fraser (Edited)..
Melanges Historiques: Etudes
Epaises et Inedites. Vol. 7 (Compiled) Gerard Malchelosse Montreal:
Vers 1' Emancipation (Premiere
Periode) L'Abte Lionel Groulx Montreal:
A History of the Organization,
Development and Services of the
Military and Naval Forces of
Canada, from the Peace of Paris
in 1763 to the present time. (Edited) Historical Section of
Vol. Ill General Staff Ottawa
The War of the American Revolu-
tion: The Province of Quebec
under the Administration of Historical Section of General
Frederick Haldimand 1778-84.. Staff Ottawa:
Papers and Addresses Kent Historical Society Chatham:
The Canadian Annual Review of
Public Affairs 1920 J. Castell Hopkins Toronto:
Reminiscences of a Raconteur George H. Ham Toronto:
Le Sang Francais A. H. DeTremaudan Winnipeg:
Knights Errant of the Wilderness.. Morden H Long Toronto:
History of the Post Office in B.N.
A., 1639-1870 William Smith Toronto:
The NovaScotia Historical Society. 20th Vol.; Collections Halifax
Canada in the Great World War...J. S. B. MacPherson and others.. Toronto:
Cours d'Histoire du Canada ,Tome
II Hon. Thomas Chapais Quebec:
Acadie: Reconstitution d'un chap-
itre perdu de 1'histoire d'Amer-
ique Edouard Richard Quebec:
Inventaire des insinuations du
conseil souverain de la nouvelle
France p. G. Roy Beauce-
XT ir ville:
Nos Voyageurs R. p. Edouard Lecompte Quebec:
Beauharnois LePEreLeduc Ottawa:
La Gaspesie en 1888 Auguste Bechard Quebec:
Le droit paroissail Chanoine C. R. Guimont Montreal:
La paroisse de Saint Nicholas: La
famille Paquet et les families
Abingdon
Southam Press
British Whig
Oxford Press
McGill University
Oxford Press
S. B. Gundy
U. of T. Press
Harvard Press
King's Printer
Musson
C. B. of C.
King's Printer
G. Ducharme
1'Action Francaise
.King's Printer
King's Printer
The Society
Canadian Review Co.
Hodder-Stoughton
La Libre
Macmillan
Macmillan
.The Society
United Publishers
Librairie Garneau
J. A. K. Laflamme
L'Eclaireui Linutee
Chez Garneau
Imprimerie
d'Ottawa
1'Imprimerie
Nationale
L' Action Francaise
alliees
.Hormisdas Magnan Quebec: Privately printed
University of Toronto Roll of Ser-
~?lc£ ; (Edited) G. O. Smith Toronto:
The Farmers m Politics William Irvine Toronto:
The Challenge of Agriculture Melville H. Staples Toronto:
Occupations for Trained Women
in Canada Alice Vincent Massey Toronto:
Canada at the Cross Roads Agnes C. Laut Toronto:
A sJ,f ?Tr °A -AmTerica Agnes C. Laut Toronto:
A Mudy in Canadian ImmigrationProf. W. G Smith Toronto-
U. of T. Press
McClelland & Stew-
art
Morang
Dent & Sons
Macmillan
Macmillan
Ryerson Press
CANADIAN BOOKS OF THE YEAR
15
Rural Organization Prof. Walter Burr
Correspondence of Sir John Mac-
donald Sir Joseph Pope
The Rev. John Stuart, D.D., U.E.L.
of Kingston and his Family A. H. Young
Herbert Symonds A Memoir
The Masques of Ottawa ,.."Domino"
Life and Letters of Sir Wilfred
Laurier Oscar Douglas Skelton
Genealogie de la Famille Otis,
Branche Canadienne Gerard Malchelosse
The Life of Dr. McCulloch Rev. John McCulloch, D.D
Jean Daniel Dumas, Le Heros de
la Monongahela: Esquisse Bio-
graphique Francis-J. Audet
Breves Apologies de nos Auteurs
Feminins Georges Bellerive
Nos Historiens — Etude de critique
litteraire Henri d' Aries
The North-Eastern part of Labra-
dor and New Quebec Prof. A. P. Coleman
..Toronto: Macmillan
.Toronto: S. B. Gundy
.Kingston: British Whig
.Toronto: U.C. Tract Society
.Toronto : Macmillan
Toronto: S. B. Gundy
.Montreal: G. Ducharme
..Truro:
..Montreal: G. Ducharme
.Quebec : Librairie Garneau
.Montreal: L'action Francaise
.Ottawa: King's Printer
SCIENTIFIC, MEDICAL AND LEGAL
The Conservation of Wild Life in
Canada ............................................ C. Gordon Hewitt, D.sc
Evolution of the Oil Industry ........ Victor Ross
The Book of Live Stock .................. Prof. Wade Toole
Question de Droit: Du Manage ..... A. A. Bruneau
Dry Farming in Western Canada Prof. J. Bracken
Contributions to Canadian Bio-
logy .................................................. Dept. Naval Service
Proceedings and Transactions Vol.
XV .............................................. .....Royal Society of Canada
Treatise on Dominion Income Law
Tax ................................ ...... C. P. Plaxton & F. P. Varcoe
..New York: Charles Scribners
..New York: Doubleday-Page
.Toronto: Musson
..Montreal: G. Ducharme
..Winnipeg: Grain Growers'
Guide
Ottawa: King's Printer
..Ottawa: Royal Society
..Toronto: Carswell
POETRY
Poems Arthur L. Phelps Ithaca: Cornell College
Canada First and other Poems James A. Ross Toronto: McClelland
Poems Arthur S. Bourinot Toronto: Best Printing Co.
Ballads of a Bohemian Robert W. Service Toronto: G. J. McLeod
Beauty and Life Duncan Campbell Scott Toronto: McClelland
Verse and Reverse Toronto Women's Press Club.... Toronto: Saturday Night
Green Wings Dorothy Leeming Brantford: Privately Printed
Bits o' Bronze H. C. Mason Toronto: Thomas Allen
Irish and Canadian Poems Michael A. Hargadon Montreal: Modern Ptg. Co.
Later Poems Bliss Carman Toronto: McClelland
My Pocket Beryl Mary Josephine Benson Cincin-
nati: Stewart & Kidd
Bill Boram Robert Norwood Toronto: McClelland
FICTION, NOVELS AND STORIES
Red Meekihs W. A. Fraser
Barriers Lady Byng of Vimy
Pawned Frank L. Packard
Moonshine Theodore Goodrige Roberts
Jess of the Rebel Trail H. A. Cody
Miriam of Queens' „ Lillian Vaux MacKinnon
Blue Pete Luke Allan (W. Lacey Amy)...
Our Little Life J. G. Sime
The Gauntlet of Alceste Hopkins Moorehouse
The Lone Trail Luke Allan
The Empty Sack Basil King
The Lobstick Trail Douglas Durkin
Winsome Winnie and other New
Nonsense Novels Stephen Leacock
Little Miss Melody Marian Keith
Rilla of Ingleside L. M. Montgomery
Purple Springs
The Window-Gazer
Are All Men Alike?
The Quest of Alistair...
The City of Peril
The Conquest of Fear.
The Gifts of the Gods
The Wine of Life
The Viking Blood
Nellie L. McClung.,
Isabel Ecclestone MacKay
Arthur J. Stringer
Robert A. Hood
Arthur J. Stringer
Basil King
Pearl Foley
Arthur J. Stringer
Frederick William Wallace
The Spoilers of the Valley Robert Watson
Making Good Capt. G. B. McKean, v.c
The Conquering Hero J. Murray Gibbon
.Toronto:
.Toronto :
.Toronto:
.Toronto:
.Toronto :
.Toronto:
.Toronto:
..New York
..Toronto:
.Toronto :
.Toronto :
.Toronto:
.Toronto:
Toronto:
.Toronto:
.Toronto:
.Toronto:
.Toronto:
.Toronto:
.Toronto :
.Toronto:
.Toronto:
.Toronto :
.Toronto:
.Toronto:
.London:
.Toronto:
McClelland
McClelland
Copp-Clark
Hodder-Stoughton
McClelland
U.C. Tract Society
McClelland
F. A. Stokes
Musson
McClelland
Musson
Musson
Oxford Press
McClelland
McClelland
Thomas Allen
McClelland
McClelland
McClelland
McClelland
S. B. Gundy
Thomas Allen
McClelland
S. B. Gundy
McClelland
Humphrey Milford
S. B. Gundy
16
The Hickory Stick......
To Him That Hath...
CANADIAN BOOKS OF THE YEAR
The Rapids
The Drama of the Forests.
Out-of-Doors Stories
My South Sea Sweetheart...
Marie Chapdelaine
Marie Chapdelaine
Sergeant 331
The Stairway
Mina Moore Jamieson
Rev, C. W. Gordon
Connor)
..Alan Sumvan"'.'.'".
Arthur Heming .............. .
Major C. G. D. Roberts
Beatrice Grimshaw
! Louis Hermon (Transl.
H Blake) ............ :
Louis Hermon (Transl.
Andrew MacPhail)
F J E Fitzpatrick
'.'.Alice Chown
.. ..Toronto:
(Ralph
Toronto:
Toronto:
Toronto..:
Toronto:
Toronto:
by W.
Toronto:
by Sir
Toronto:
New York
Boston
McClelland
McClelland
Copp-Clark
S. B. Gundy
Macmillan
Macmillan
Macmillan
S. B. Gundy
Privately Printed
Cornhill
WORKS OF REFERENCE
(Edited) R. H. Coats, F.S.S....
The Year Book of Canada
e:.-°J. Castell Hopkins ........................ Toronto:
Edited) G. E. Marquis .............. Quebec:
SSe Sffic. S, J.Phinip, ........................ .Montreal
Who's Who and Why ...................... (Edited) B. M. Greene ................ Toronto:
Ottawa: King's Printer
J. McCoig
. .
Wrigley 's Saskatchewan Directory (Edited) J. McCoig ...................... Vancou-
Canadian Bank of Commerce ........ Annual Report .............................. Toronto:
The Royal Bank of Canada .............. Annual Report .............................. Montreal
Historical Statistical Survey of
Education ........................ Dominion Bureau of Statistics Ottawa:
Annual Financial Review ................ (Edited) W. R. Houston ............. Toronto:
Directory of Legal Correspondents
in Canada ...................................... 19th year of issue ................
The Year Book of Toronto ............... Toronto Board of Trade .....
Canadian Newspaper Directory
1921 ................................ 14th Issue ...................................... Toronto:
The Canadian Almanac 1921 ......... (Edited) A. W. Thomas .............. Toronto:
5000 Facts about Canada .............. (Edited) Frank Yeigh .................. Toronto..
Heaton's Annual ................................ (Edited) Ernest Heaton .............. Toronto:
Heaton's Canadian Export Book...(Edited) Ernest Heaton .............. Toronto:
Monetary Times Annual .................. (Edited) W. A. McKenzie. v— — *»«
Toronto:
Toronto:
.Toronto:
Canadian Review Co.
King's Printer
C. S. J. Phillips
International Press
Wrigley
Wrigley
C. B. of C.
Royal Bank
King's Printer
Houston
Carswell
B.ofT.
A. McKim Ltd.
Copp-Clark
Canadian Facts Pub.
Heaton's Agency
Heaton's Agency
Monetary Times
RELIGIOUS, SOCIAL AND GENERAL
The Golden Apple Tree Virna Sheard Toronto:
Bonnie Prince Fetlar Marshall Saunders Toronto:
Knights Errant of the Wilderness...Morden H. Long Toronto:
The Trail Makers Boys' Annual
1921 Miss A. E.Wilson Toronto:
Year Book and Clergy List of the
Church of England in Canada Church of England Toronto:
A People's Life of Christ Rev. Dr. Paterson-Smyth Toronto:
Optimism and other Sermons Rev. Robert Law, D.D Toronto:
Spiritual Voices in Modern Litera-
ture Rev. Trevor Davies, D.D Toronto:
Catholic Problems in Western
Canada Rev. George Thomas Daly Toronto:
Self-Development H. Addington Bruce New York
Canadian Modern Accounting A. F. Sprott and Frank G. Short Toronto:
MONOGRAPHS AND PAMPHLETS
Bolshevism Rev. John W. Hamilton
Public Records of Nova Scotia Joseph Plimsoll Edwards
Suggestions for Land Settlement... Major E. J. Ashton and Others.
Canada and Reciprocity with the
United States Canadian Reconstruction Assn.
An Outline of Provincial and Mun-
icipal Taxation A. B. Clark
Canada's Poets and Prose Writers..The Grolier Society....................
La Question ouvriere au Canada.... Arthur Saint-Pierre.
The Non-partisan League in North
Dakota Can. Reconstruction Ass'n
The Story of Canada's War Fin-
ance Sir Thomas White
Papers and Addresses, Vol. 5 Kent Historical Society
Review of Fire Insurance Business
Canada, 1921 Cecil C. Wainwright
.Vineland:
.Halifax:
.Toronto:
McClelland
McClelland
Macmillan
Hodder-Stoughton
Missionary Society
Musson
McClelland
Ryerson Press
Macmillan
Funk & Wagnalls
Commercial Text
Book Co.
Privately Printed
King's Printer
Association
Toronto: Association
.Winnipeg*:
.Toronto:
.Montreal :
Univ. of Manitoba
Grolier Society
Privately Printed
.Toronto: Association
.Montreal:
.Chatham:
C. B. of C.
The Society
..Toronto: Western Assurance
THE CANADIAN COAT OF ARMS
Approved by Proclamation of His Majesty The King — Nov. 21, 1921.
THE
CANADIAN ANNUAL REVIEW
OF
PUBLIC AFFAIRS
The World
Situation;
Problems and
Progress of
Reconstruc-
tion.
FINANCIAL CONDITIONS OF 1921.
The clouds of depression hanging over Canada
at the beginning of 1921 and throughout the year
showed signs of breaking at its close ; deflation in
the Dominion, as in the United States, had nearly
reached its level and there were indications that
the worst stages of reconstruction in North
America had been passed. To some extent, how-
ever, the situation still turned upon conditions in Europe and the
East — conditions of lessening but still powerful world-unrest, of
difficult international relationships, of racial strife within na-
tional or Empire boundaries, of bitter Socialistic distrust, of
Bolshevist class-warfare and hatreds, of an ignorant proletariat
unwilling to trust the educated and experienced classes to lead
it out of the financial, industrial and productive quagmires
left as the aftermath of war.
Canada, like the United States, was vitally concerned in
these conditions. Its markets were affected, the prices of its
products were involved, the stability of its finances were de-
pendent to some extent upon an intricate world-system which
had not as yet found complete re-organization possible. Close
relationship with Great Britain and the countries of the Empire
had given its financial leaders and its people, however, a natural-
ly wider outlook than those of the United States ; they were
quick to recognize the import and possible value of such develop-
ments as the Washington Conference — as in the case of British
Empire Conferences amidst other and older conditions — in sta-
bilizing finance, unifying thought and action, pacifying preju-
dices, modifying unrest and suspicion. Hence, during 1921, a
growing regret expressed in Canada that the United States had
not allied itself with Great Britain in the latter's policy of assist-
ing and hastening European reconstruction ; a ready recognition,
at the same time, of American difficulties in this connection —
[171
18 THE CANADIAN ANNUAL REVIEW
traditional and racial and the result of a century of national
isolation and of tremendous internal development.
Canadians understood to some extent the problems of
Europe through association with the problems of Empire. They
appreciated during 1921 something of Great Britain s huge task
in confronting the tragedy of Ireland and the racial nationalism
of South Africa ; the enormous problem of internal racialism in
India— which touched more races and embryo nations than
Europe and Russia combined; the Oriental complications of
Palestine and Mesopotamia and Persia: the revolutionary
troubles in Egypt which constituted a menace to the British
and world-route to India and a fire-brand ready to be thrown
into the quiet but always volcanic masses of the Soudan and
Northern Africa. As a matter of fact, the torches of flaming
unrest waived by a Hertzog, a Gandhi, a Zaghlul, by many a
neophyte of these prophets of discontent in other countries, and
by world-wide disciples of Karl Marx or Lenine, had a direct
effect upon the general stabilization of finance, the economic re-
construction of the world, the well-being of Canada, the recovery
of Great Britain or the condition of the United States.
The discouraging, doubtful or depressing developments of
the year were the absence of any active, aggressive evidences of
business recovery ; the decreasing volume of trade in most coun-
tries and in the greater lines of industry — illustrated, notably,
in iron and steel conditions ; the widespread unemployment run-
ning, at one time in the year, to 5,735,000 in the United States, to
2,171,000 in Great Britain, and to hundreds of thousands in new
countries like Canada or Australia ; the tremendous fall of prices
in agricultural products and the deflation of the farmer at a
more rapid rate than the merchant or wholesaler; the failure
to fully return to a common level of values where the farmer
could exchange his products for the goods he required at some-
thing like a pre-war ratio ; the ever-growing volume of de-
preciated currency being issued in Germany, Russia and Poland
with its inevitable result of further and more chaotic financial
conditions. There was, also, the continued increase of national
budgets in some European countries with its corollary of in-
creased debt and taxation; the ever-pressing burden upon the
world of National Debts estimated in 1921 at a total of $382,634,-
000,000 as compared with $43,362,000,000 in 1913*; continued
difficulties in the United States with the Railways and, during
most of the year, as to the National lines in Canada; the per-
sistent decline of American and Canadian export trade and con-
sequent depression in many industries and interests; continued
and inevitable demoralization of exchange rates in the countries
of a great part of Europe. As against these depressing condi-
tions or tendencies there were various fundamental matters in-
nd reduced to dollar currency by The National City Bank of
THE WORLD SITUATION; PROBLEMS OF RECONSTRUCTION 19
dicating improvement and warranting hopefulness. They may
be summarized as follows :
1. The practical completion in the United States and Great Britain,
in Canada and the British Dominions generally, of liquidation in trade
and industry with cessation of the heavy fall in prices which accom-
panied reconstruction— a fall of 40 per cent, in a year and a half in Great
Britain and corresponding, though not exactly similar, reductions in the
other countries specified.
2. In the United States commodity prices struck their lowest level
in the midsummer of 1921 and remained fairly steady during the rest of
the year. With the stabilization of prices came that steadying of con-
ditions which, in all past experience, had preceded a revival in trade.
The farmers could fear nothing lower in the price of their products ; any
change would be for the better.
3. The attitude of Labour was proving most satisfactory in Canada
with, at the close of the year, an absolute minimum of trouble; while
unemployment was considerable, it was not more than in the preceding
winter and, in Great Britain and the United States, the total was
lessening with strikes decreasing in number and in importance; every-
where in these pivotal countries of the world the Bolshevistic spirit of
1919 was clearly losing its grip and unrest almost visibly subsiding.
4. Following the low prices of agricultural products came the bene-
ficial corollary of reduced costs in production and the enhanced chances
of holding and increasing an export trade in these products.
5. As a result of persistent economy and reduction in operating ex-
penses, of a lower wage rate and careful management, the Railways of
Canada showed an improving condition at the clos« of the year; in the
United States anticipated insolvencies had been averted and in both
countries the decks had been cleared for a possible revival in traffic and
larger net receipts. In Great Britain the Railway situation was greatly
improved; in Germany the Railways reached an efficiency 65 per cent,
of pre-war conditions and, under the management of General Groener,
were being rapidly shifted from State control to that of local Railway
Councils.
6. The depression of internal trade in Canada and the United
States encouraged a wider and saner view of exporting conditions and
the question of long or doubtful foreign credits. To Canada the Rou-
manian and Greek experiments proved a living lesson in trade economics.
The decrease in the excess of United States Exports to Europe over its
Imports continued and clearly marked an approximation to more normal
conditions. In the calendar year 1919, the excess of Imports which
Europe had in some way to meet or pay was 3,720 millions, in 1920 it
was 2,642 millions, in 1921 it fell to 1,437 millions.
Canadian trade passed out of the abnormal condition of preceding
years and its condition of excessive Imports changed into one of
equality; the average $400,000,000 excess of Imports in 1916-19 became in
1921 a small balance on the Export side. Better conditions in British
finance and the partial economic recovery of France and Italy; the
Labour adjustments in Great Britain and splendid activities of the
French and Belgian workingmen, were obvious and potent factors in
this change.
7. Exchange rates in New York at the close of the year were im-
proving steadily. English exchange on Dec. 31, 1921, stood at 86'6% of
par ; on Dec. 31, 1920, the ratio was 72 8 of par. Similarly Canadian ex-
change had risen in New York from 857 to 95'1 per cent, of par. In the
United States, Bank loans and money rates reached their lowest level
and this was considered by financial writers to be a good sign ; in Canada
money became easier at the close of the year and Canadian bonds found
a ready market at home and in the United States with an upward tend-
ency in price.
8. The improved international and political situation was an obvious
fact at the close of 1921. The Washington Conference had stabilized the
20 THE CANADIAN ANNUAL REVIEW
relations of Britain and the United States and made possible a better
adjustment of their financial relations; the partial settlement of the
Irish question helped to this end and made political conditions in Eng-
land brighter and easier; the Prince of Wales' visit to India did much
to check the current of somewhat inflated and bombastically described
disaffection in that home of a vast population; the elections in the
United States and Canada and South Africa steadied the political situa-
tion in those countries. These and other things were commencing to
produce confidence; with financial confidence, it was hoped, would come
enhanced business credit and trade expansion .
9. Of vital importance was the steady, continuous lowering of the
war-scale of wages — paving the way for revival of industrial business
and agricultural prosperity. Deflation in Agriculture, in Manufacturers'
prices, in transport rates, in Merchants' goods— the last a very slow and
halting process — were finally followed by this essential element of
wage reduction.
One of the most important influences for world welfare in
1921 was the decrease in paper currency and increase of gold
reserves in the more solvent nations of the world. The pro-
cess could not, of course, equal the boundless issue of almost
worthless money by Germany, Russia, Poland, Roumania and
Austria, but it indicated that the great nations upon which the
world's prosperity in the near future would turn were doing
more than merely retaining their stability. The countries which
decreased their paper currency between 1919 and 1921 were the
United States (414 millions), Great Britain (17 millions), France
(126 millions) ; Switzerland, Norway, Egypt, Japan, Denmark,
Netherlands, Sweden and Canada in small amounts to a total
for all of $317,000,000; their increase in gold reserves was $1,-
183,000,000 and in this condition the United States stood for
about two-thirds.
Of the two countries with which Canada was most concerned
the United Kingdom, between 1914 and 1921, increased its paper
currency from 140 to 2,115 million dollars, and its gold reserves
from 195 to 764 millions ; the figures for the United States rose
from 1,056 to 3,637 millions in paper currency and from 1,023 to
2,944 millions in gold reserves ; Canada itself increased from 210
millions in paper currency to 447 millions and from 155 millions
in gold reserves to 190. But the essential element of interest was
the fact that between 1919 and 1921 the various countries speci-
fied had ceased the process of creating larger supplies of paper
money, that the opposite process had commenced, and that ac-
cumulations of gold were increasing in countries other than the
United States.
Upon this problem of gold there turned much of the ques-
tion of reconstruction— of whether it was to be slow or rapid.
The pouring of gold into the United States after the war to help
m settling trade and other balances continued, until in 1921 that
country held 40 per cent, of the gold of the world— about $3,000,-
IXMXX) chiefly in National and Bank reserves— compared with
the 23 per cent, which it held in 1913. Such a condition would, in
THE WORLD SITUATION; PROBLEMS OF RECONSTRUCTION 21
itself, disturb the financial equilibrium of the world besides being
an evidence of the general disturbance already existing. Much
of this gold had filtered through European countries from Russia
which had been, by this time, almost stripped of its gold to pay
for food and necessaries — in lieu of the credit which Communis-
tic fantasies and violence had destroyed; some of it had come
from India where the unusual experience of an unfavourable
trade balance was being slowly overcome ; much, also, had> come
from South Africa direct, instead of being distributed in Europe
through London for the normal purpose of gold coinage and in-
dustrial use.
Early in 1921 the United States held gold reserves total-
ling $2,529,571,000 compared with $691,514,000 in 1913; the
United Kingdom had, also, increased its holdings from $170,-
245,000 in 1913 to $763,350,000 in 1921* According to the U. S.
Treasury at Washington the general stock of gold in the United
States on Jan. 1st, 1920, was $2,787,714,306, on the same date in
1921 it was $2,784,834,427, and at the end of the year it was $3,-
656,988,551 ; meanwhile the money in circulation had increased
from $851,025,400 on Jan. 1st, 1921, to $1,094,542,032 at the close
of the year.
Meanwhile, the United States production of gold had
steadily decreased since 1915, when it totalled $101,036,000, to
1920 when it was $51,098,000. The British Empire remained
the largest producer in the world with a total of $229,671,000
in 1920 compared with $266,154,000 in 1914.f South Africa and
Australia and India all showed reductions while Canada alone
had an increase. As the inflation rose and fell, gold production
almost uniformly decreased. The immense gold holdings of the
United States undoubtedly checked the trade of that country,
they constituted a form of national indigestion and the absence
of this gold from circulation was a clear indication of continued
stress and strain in Europe. United States Loans or Credits
abroad would have withdrawn some of the gold from America
and, at the same time, have strengthened weak European cur-
rencies and promoted increased trade and international pros-
perity. This process, and signs of sanity in Russia, would be the
final proofs of returning prosperity.
Such, briefly, is an abstract of the world financial situation
in 1921. There was distinct improvement in the countries that
directly concerned Canada ; there still was unrest and financial
difficulty everywhere but with signs of betterment in other coun-
tries indirectly involving Canadian interests — as India, Australia,
etc. ; there was no clear evidence of improvement in German
finance but there was in its trade condition and even in Russia,
the willingness to abandon chaotic Communism for some modi-
*Note — U. S. Federal Reserve Bulletin (Official) June, 1921.
tNote— Estimate of the London Statist, Feb. 19, 1921 .
22 THE CANADIAN ANNUAL REVIEW
fied form of Socialism and to discuss matters in a European
Conference was a hopeful sign. With these general conditions
and the Irish settlement, the Washington Peace treaties, the im-
provement in Exchange, the plans for an International Confer-
ence at Genoa, there were continental conditions of a character
which seemed to warrant an optimistic feeling at the close of
1921.
There was, in both Canada and the United States, a dis-
tinct betterment in the Labour situation, and fewer strikes, a
lower cost of living and of credit ; there was a reduction of Bank
loans and a steady liquidation of the "frozen" liabilities which a
tie-up in business always creates ; there were improving stock
and bond prices, better financial aid to farmers, increased
economy on the part of Governments and plans for reduced taxa-
tion, a gradual betterment in certain lines of industry. There
was an inevitable and large increase in Failures in the United
States and Canada — the former country showing a total of
$617,774,364 in 1921 against $295,121,805 in 1920 and Canada 58
millions as compared with 18 millions in 1920. But this was an
obvious part of readjustment and reconstruction; if it proved
anything specific it was that these countries had taken their war
medicine, had thrown off many of the results of inflation, and
were approaching more normal conditions.
Canadians, during the year, suffered seriously
c *r°m t^ie Depression anc* hoped vainly for a turn in
in Can"<fa the tide until near its close- Signs of a change then
During 1921. were clearly visible — partly seasonal in business
activities, partly international, partly the result of
an approach to the normal in trade with the United States, in
costs of labour and in prices of products. The worst of the de-
flation was over and the basic elements of Canada's prosperity
remained intact. With about 5 per cent, of the world's popula-
tion, it still was able to produce 18 per cent, of its oats and 11 per
cent, of its wheat and its barley, 4 per cent, of its gold and its
copper, 12 per cent, of its silver, about 85 per cent, of its cobalt,
asbestos and nickel, 32 per cent, of its pulpwood and 20 per cent.
of its lumber and fish.* It could do much more with increased
immigration and, while its natural resources and riches were not
boundless, they certainly were very great; lying between, and in
lull touch with, the financial and general interests of the two
richest and greatest countries in the world, a large future de-
velopment in both population and wealth was seemingly sure.
But the stern aftermath of war expenditures in men and money
naa to be endured first ; in comparison with practically all coun-
tries-not excluding the United States-Canada now suffered
perhaps the least of any.
Note-Compiled by Agricultural and Industrial Progress, a monthly publicatioa of the C.P.R
FINANCIAL CONDITIONS IN CANADA DURING 1921 23
At the beginning of 1921 commodity prices still were grossly
inflated in many directions, wages remained largely on a war-
footing, the Banking position was one of contraction in credits
and extreme caution in every direction, the retailer had refused,
in too many cases, to admit the necessity of a loss and still was
holding prices up. With the farmer, however, deflation had
commenced and his crop of 1920 was worth $80,000,000 less than
that of the previous year and was destined in the coming season
to show a reduction of $500,000,000. He faced deflation in its
worst form and to the loss in grain crops was added partial ex-
clusion of his cattle and other products from the U. S. market.
As the year passed to its close all classes shared in the position
of the farmer, but not to the same drastic degree. There was a
steady reduction in manufactured goods and general wholesale
prices fell about 36 per cent, while, between May, 1920, and Sep-
tember, 1921, Labour Department Index figures snowed a general
fall of 356 to 232 — though they still remained far above the pre-
war level ; the pulp and paper industry could not, during much
of the year, market all its output and profits were curtailed
while exports fell off and selling-prices only slightly decreased ;
the cost of living decreased — largely in foodstuffs — and the
Dominion Bureau of Statistics quoted $16.84 per week in July,
1920, for a family of five persons and $11.00 for the same supplies
in November, 1921.
Other prices fell and, by the close of the year, the smaller
dealers and manufacturers were accepting the situation and
throwing their surplus stocks upon the market. As Sir Vincent
Meredith, President of the Bank of Montreal, put it on May 28 :
"A number of merchants and manufacturers with us, as else-
where, have been caught with heavy stocks, largely accumulated
at former excessive prices, notwithstanding that the Banks had
been giving warnings of the possibilities of a precipitate decline
in the prices of merchandise and commodities. These stocks
will have to be liquidated, and losses, no doubt, will have to be
faced before a return to normal conditions can be looked for."
The ensuing record of commercial failures was more than double
that of 1920; this was one of the clearest proofs that deflation
had reached all classes and was, by this time, only a question of
differing degree.
The Financial Post, Toronto, (Dec. 2, 1921) stated that "a
special survey of the business situation indicates that stocks of
merchandise in the hands of retail merchants are now for the
most part down to normal or below. Prices, however, although
they have been generally adjusted, are still regarded as being too
high in the majority of communities." According to R. G. Dun
& Co., the Failures of 1921 affected most largely the machinery
and tools industry, lumbermen and carpenters, clothing and mil-
linery; amongst traders, general stores, with groceries and
meats — which totalled $11,^)9,610 — clothing and furniture, dry-
24
THE CANADIAN ANNUAL REVIEW
goods and carpets, shoes and trunks, hats, furs and gloves were
most affected. The total number of Commercial Failures was
245 and the liabilities $73,299,111, of Manufacturing failures 559
with $33,976,790, of Trading failures 1,739 with $29,886,569. With
sundries the Canadian Failures of the year were 4,903 in number
and the Liabilities $146,643,455 compared with 2,156 and $52,-
988,602, respectively, in 1920. The external trade of the year
reached a highly satisfactory point with Exports almost balanc-
ing Imports, with decreases in the importation of silks, cottons,
and wool and, in lesser measure, of coal and petroleum, with a
heavy reduction of the unfavourable U. S. balance. As a result
of this latter condition, and despite the large sale of Canadian
bonds in the United States, the Canadian dollar in New York
rose from a value of 84 cents at the end of 1920 to 93^ cents on
Dec. 20, 1921.
Many industrial Companies during the year passed or re-
duced their dividends but the total was not as bad — either rela-
tively or positively — as in the United States. There were also
many declines in stocks at different periods of the year and on
one day (May 20) C. P. R. had a drop of 6 points. The greater
stocks were not seriously or permanently affected, however, and
a prominent financial journal in October asked 10 leading firms
of stock-brokers in Montreal and Toronto to name the 10 best
dividend-paying Canadian stocks of this period with a result
which varied in detail but included the following names :
National Trust Company.
Consumers Gas Co.
Canadian Pacific Railway.
City Dairy Co.
Canadian Locomotive (P'fd).
F. N. Burt Company.
Penman's Limited.
Brompton Pulp, 8% Bonds.
King Edward Construction.
Ottawa Light, Heat and Power.
Asbestos Corporation (P'fd).
Dominion Bridge Company.
Canadian Cottons (Common).
Canada Cement (Common).
Canadian General Electric.
Dominion Textile Company.
Montreal Power Consolidated.
Shawinigan Water and Power.
Lake of the Woods (Common).
Consolidated Mining (Common).
Ogilvie Flour Mills.
Maple Leaf Milling Company.
Bell Telephone Co.
Spanish River 8% Bonds.
Fraser Companies Limited.
Laurentide Power Company.
Steel of Canada (Preferred).
Southern Canada Power (P'fd).
Winnipeg Electric (Preferred).
Winnipeg Electric (Common).
Montreal Light, Heat and Power,
Canada Permanent Mortgage.
The situation as to Bonds was important. The period of
steadily rising rates for money reached its climax in 1920 and
the slowing-down of business in the following year, lower costs
of operation, and reduction of prices, caused in Canada, as else-
where, obvious and large reduction in the demand for funds,
continued accumulation of funds for profitable investment and
the reduction of rates for lending money. This development
was gradual during 1921 in Canada but effective in enhancing
tile price of Government and Municipal issues. A. E. Ames &
Company, the well-known stock-brokers of Toronto, estimated
I
FINANCIAL CONDITIONS IN CANADA DURING 1921 25
at the close of the year that upon outstanding obligations of this
nature, totalling $3,61 5,000,000, the market value was $150,000,000
greater than it had been six months before. That prices and con-
ditions were deemed favourable was apparent in the increased
and large purchases of bonds by Canadians. J. W. Mitchell, of
the Dominion Securities Corporation, who, in recent years, had
continued the valuable yearly Bond statement initiated by E. R.
Wood, President of that Company, stated the total figures for
1921 as follows :
Taken by Taken by Taken by
Canada United Great
Issue Amount States Britain
Government $133,488,500 $77,082,500 $56,406,000
Municipal 88,805,973 73,356,414 15,449,559
Railway 101,150,000 87,000,000 $14,150,000
Public Service 15,450,000 6,200,000 9,250,000
Miscellaneous 61,290,345 44,909,025 13,950,000 2,431,320
Total $400.184,818 $201,547,939 $182,055,559 $16,581,320
This total compared with $318,832,081 in 1920 and $272,935,-
067 in 1914. But, in the pre-war year, Great Britain took 68 per
cent, of the amount and in 1921 the United States took almost 50
per cent, and Great Britain about 4 per cent. At the beginning
of the War Great Britain held the bulk of Canada's securities;
at the close of 1921, in bonds, stocks and other securities Cana-
dians held $945,000,000, Britain $153,000,000, and the United
States $555,000,000. Great Britain, however, had again com-
menced investment in Canada and its issue of new capital in the
first 10 months of 1921 was £183,000,000 of which one-half went
to other parts of the Empire. With Exchange again normal this
process would greatly expand. In the seven years 1908-14, the
Canadian public purchased its own bonds to a total of $285,644,-
239; in the same term of 1915-21, Canadians purchased $2,514,-
533,696. It may also be added that Provincial Governments,
Municipalities and Corporations borrowed in 1920 and 1921
above the average of the years 1909-1914. The total Bond sales
of 1921 were $398,975,245 as compared with $327,290,000 in 1920
and $272,935,067 in 1919; of the 1921 total $144,000,000 was sold
by Provinces.
Meantime, all the contraction in business, the unemploy-
ment and the financial depression had hardly affected the Savings
of the public ; in October, 1920, the notice deposits in the Banks
totalled $1,271,275,751, and in October, 1921, they were $1,251,-
323,839. Much public money was invested in Victory Bonds
and the prices of these securities ranged upwards during the
year as follows : 1922— high in January 99%, low 97 and, in De-
cember, 99-20 and 99 respectively; 1923— high in January 99, low
95^ and, in December, 99-25 and 98 respectively; 1924 — high in
January 97%, low 94^ and, in December 98-40 and 98 respective-
ly; 1927— high in January 98^, low 95% and, in December, 100-25
and 99 25 respectively ; 1933— high in January 99, low 95^ and,
26 THE CANADIAN ANNUAL REVIEW
in December, 101-15 and 10030 respectively; 1934 — high in Janu-
ary 96ys, low 92^4 and, in December, 9870 and 97-60 respectively ;
1937_high in January 100J4, low 97 and, in December, 103-35 and
102 respectively.*
At the end of 1921 there was in Canada a slowly-growing
optimism, a gradual passing of the mental cloud of depression
which always marks and often helps the financial depression, a
feeling of certainty and assurance as to the future which was
entirely lacking at the first of the year. There was an increase
in employment, business failures were less frequent, payments
were improving. On the other hand, as Sir F. Williams-Taylor
pointed out in a Message to a British periodical on Dec. 31,
values still were out of joint and the cost of labour still out of
proportion to the purchasing power for the product of labour.
President E. W. Beatty, of the C. P. R., pointed out at the same
time, however, that the general policy of economy during the
past year had kept the business interests in sound condition and
had much reduced the cost of living: "All indications point to
better commercial, financial, and industrial conditions in Canada
for the coming year, particularly if the price of wheat improves
as it should^."
Government finance followed the trend of Na-
tional conditions in 1921. By Mch. 31 the Customs
revenue for the fiscal year had decreased from
$107,429,812 in 1919-20 to $102,812,951 in 1920-21;
Drayton'. Excise from $42,282,851 to $36,699,473 and Railway
Budget. revenue (including Canals) from $43,936,862 to
$38,872,833. The total, however, was not yet affect-
ed, except favourably, and the returns from War taxation, Inland
revenue, Business Profits, Income and other special taxation had
considerably increased, with a revenue, all-told, of $451,366,029
compared with $380,832,507 in 1919-20. Expenditures on ordinary
Sir Henry Drayton, Minister of Finance, on May 9 present-
:d ,t.° P^llamf.nt *»s BudSet speech dealing with the fiscal year
ending Mch 31 He referred to it as a trying one; a year of
ifficulty and deflation; mentioned the Luxury taxes of 1920 as
imposed for the specific purpose of checking extravagant or un-
ecessary buying as well as of raising revenue and as being re-
aS in 1"De.cembe'-. 1920 when the declines in commodity prices
t?lt" P urch.ases °f goods were clearly defined; described the
f,,t twTS1£", Canadlan trade in 1919 and 1920 but pointed
the nnf M nf ,necessarily involve prosperity and specified
' A' ?' C°bban of Wood' Gundy &
moved into imposing new quarters in 1921.
NATIONAL FINANCE AND TAXATION; THE DRAYTON BUDGET 27
balance, coupled with the increased invisible payments which
have to be made to American holders of Canadian securities and
investments, of necessity creates a heavy demand for New York
exchange, resulting in a premium on New York funds. The real
balance against Canada is also increased by the aggregate of the
discount on Canadian money in New York, as the trade figures
do not include the resultant increased cost to the Canadian pur-
chaser." The U. S. Emergency Tariff would, he added, make
this situation worse.
The total expenditure for the fiscal year 1920-21 was esti-
mated at $533,368,077 as against $613,225,411 provided in the
1919-20 Estimates. Of the current total $362,600,000 was charge-
able to Consolidated or ordinary account; special expenditures
and Demobilization required $57,102,000 and Railways $96,931,-
077. During the year Tax-exemption bonds of $89,228,300 had
been acquired, taken off the market, and would be cancelled;
after the writing-down of inactive Assets which took place in
1920 the Net Debt stood at $2,350,236,700. The Minister added
this comment : "In the period 1896 to and including 1914, the net
additions to the Debt totalled $77,499,417. As compared with
this, during the period 1914 to date, if the writing-down of non-
active assets had not taken place and if the bare War-cost be de-
ducted but resulting current expenses arising from the War,
such as for interest, pensions, etc., be nevertheless charged, the
Net Debt to-day would stand at approximately $115,000,000 less
than at Mch. 31, 1914." The charges to the Consolidated fund of
payments made on current War account from and including the
years 1914-15 to 1920-21 amounted to $553,732,120 and for new
services and expenses were $30,077,580, making a total of $583,-
809,700. The estimated Revenue for 1921-22 was $372,600,000
and of ordinary and capital Expenditure $378,258,101 ; the Rail-
way expenditure, additional, was placed at $165.687,633 and that
of Soldiers' Settlement Board, Housing Loans and Sinking funds,
at $47,491,963.
The Minister stated that there would be no general revision
of the Tariff; the uncertain but probable fiscal attitude of the
United States toward $168,000,000 of Canadian trade, made de-
lay advisable. Later on, when these conditions were stabilized,
a careful and thorough revision of the Canadian tariff for the
purpose of ensuring the proper continuance of Canadian busi-
ness and employment would be essential. That did not mean
following the Customs rates of the United States: "Creditor
nations are not under the necessity of discharging money claims
with an excess of visible exports over visible imports or by fresh
borrowings." Canada had a yearly adverse balance of $180,000,-
000 of interest against her before trade came into the question at
all. Certain changes in Tariff detail were, however, said to be
necessary and they may be summed up as follows :
28 THE CANADIAN ANNUAL REVIEW
1. Dropping of Business Profits Tax.
2. Elimination of the few remaining Luxury Taxes, such as that on
confectionery.
3. Certain changes made to implement trade agreements with France
and with the British West Indies.
4. Legislation to secure a more efficient carrying-out of the exist-
ing Dumping provisions, and to deal with the valuation on which duties
were assessed.
5. An amendment relating to the valuation for customs purposes of
foreign currencies. Where the rate of exchange was adverse to Canada,
the value for duty would be computed at the rate of exchange existing
at the date of the shipment of the goods.
6. To make stringent regulations forcing every imported article to
have country of origin plainly stamped upon it.
7. Changing Excise duty of $3.00 a gallon on spirits and $2.00 addi-
tional duty under the Luxury taxes to a straight $10.00 Customs rate.
8. Excise tax of 8 to 15 cents a pack on playing cards at the time
of sale by Canadian manufacturer or when taken from Custom House.
9. Excise tax of 30 cents a gallon on wines of all kinds except spark-
ling wines.
10. Excise tax of $3.00 per gallon on champagne and other sparkling
wines when taken from Canadian manufacturer, but not when exported ;
Excise tax on distilled spirits of $9.00 a gallon, with rebate of 99 per cent.
of duties on alcohol to hospitals for medicinal purposes ; the tax on
alcohol when used for patent and proprietary medicines and pharma-
ceutical preparations being $2.40 a gallon.
11. Increase of Tax on sales of manufacturers, wholesalers, jobbers
and importers, from 1 and 2 per cent, rates on domestic transactions to
ll/2 and 3 per cent., respectively, and the import rates from V/t and 3
per cent, to 2y2 and 4 per cent., respectively— the exemptions being food-
stuffs in their natural state, initial sales of farm produce by the farmer
of his own production, and the first products of fisheries, mines and
forests.
12. A $2.00 license fee for every manufacturer and business man
affected by above sales and Excise tax.
The favourable view of this Budget was expressed by the
Ottawa Journal (May 11) as follows: "It shows that during a
financial period of unprecedented difficulty the Dominion's eco-
nomic structure has remained unshaken ; removes taxes that had
become burdensome and ineffective; imposes new taxes that
promise adequate revenue without undue severity; indicates
that the Ministry is practising economy and, finally, reveals a
future condition that may be faced without fear." The other
view was amply expressed by Liberal and Agrarian speakers
uring the ensuing debate. The Budget was described as a mere
temporary expedient pending the Elections, a covering-up of a
mcult situation, a financial stop-gap and evasion of vital issues.
miHon'.W- S' Fielding> Liberal Minister of Finance in
-1911, replied to the Minister in a very moderate speech. He
lescnbed the situation as a grave one and the continued Income
tax as a necessary burden made unduly troublesome and heavy
by methods of operation; deprecated any but the most moderate
expenditure upon Defence; denounced the existing Tariff as
NATIONAL FINANCE AND TAXATION; THE DRAYTON BUDGET 29
built upon the Protective principle, as un-economic in fact and
application and the cause of existing national unrest; declared
that the action of Canada in turning down the Reciprocity Treaty
of 1911 had put the country in the wrong and left it with no
right to complain of the Fordney or any other U. S. Tariff. Mr.
Fielding did not deal with finance, proper, in any detail, but con-
cluded by moving a Resolution which expressed regret that no
serious proposals were presented for a revision of the Tariff,
described the Government's policy as lacking in due regard for
economy, urged a substantial reduction in proposed expenditure
before resorting to new taxation, and continued as follows :
That, while recognizing that existing financial requirements of the
Dominion demand the maintenance of a Customs tariff, the House is un-
able to concur in the declarations by the Government that the Tariff
should be based on the principle of Protection ; the Tariff is a tax, and
the aim of legislation should be to make taxation as light as circum-
stances will permit ;
That the aim of the fiscal policy of Canada should be the encourage-
ment of industries based on the national resources of the country; the
development of which may reasonably be expected to create healthy
enterprises giving promise of enduring success ;
That such changes should be made in the Customs duties as may be
expected to reduce the cost of living, and to reduce, also, the cost of im-
plements of production required for the efficient development of the
natural resources of the Dominion ;
That, while keeping this aim clearly in mind, the House recognizes
that in any readjustment of the Tariff that may take place, regard
must be had to existing conditions of trade, and changes made in such
a manner as will cause the least possible disturbance of business.
The discussion which followed was prolonged and covered
the varied subjects of economic, trade, fiscal and political char-
acter which always develop in these debates. The vote on the
Fielding amendment took place on May 19 and showed 103 for
the Government and 83 for the Amendment. On Dec. 21 Sir
H. Drayton handed out a statement at Ottawa which briefly re-
viewed the financial situation. He declared that in the 8-month
period from Apr. 1st to Dec. 1st, 1921, only $68,608,628 had been
collected by Customs as against $124,376,063 in the same 8
months of 1920, a drop of $55,767,435 ; that this deficiency was
more than made up through the Income tax and Business Profits
tax for the period, which totalled $83,574,403, as against $28,-
804,649 for the same period in 1920; that notwithstanding the
cancellation of the so-called Luxury taxes, and the great drop
in business, Inland revenue and special taxes — largely owing to
the Sales tax amendments of the past Session — showed an in-
crease ; that the actual increase of the Debt for this 8 months
amounted to but $26,828,032, including capital and railway pay-
ments.
At the close of 1921 (Dec. 31) the Canada Gazette gave the
Net Debt as $2,366,861,252 compared with $2,308,218,462 a year
before; the total Receipts on account of Consolidated Fund for
30 THE CANADIAN ANNUAL REVIEW
the 9 months of 1921 following Mch. 31, were given as $294,270,-
639 and the Expenditures on the same account as $241,553,465.
The capital Expenditure in that period was stated as $12,523,905 ;
what had become of the huge Railway expenses and require-
ments was not explained but, presumably, they were considered
an extraneous matter. In the revenue figures Customs returns
had fallen $57,000,000 and the revenue from Railways $36,000,-
000; the total 9 months' revenue had fallen $50,000,000 while ex-
penditures— Consolidated and capital — were reduced $60,000,000.
Financial incidents of the year included Sir H. Drayton's
statement in the House on Apr. 27 that European countries in-
debted to Canada owed the Dominion on Mch. 31, 1921, over
$47,000,000, as follows: Italy, $6,003,301; France $5,648,726;
Belgium $6,291,225 ; Roumania $20,571,227 and $1,475,234; Greece
$7,478,953 and $153,915 of Interest to Dec. 31, 1920. On the same
day Sir Henry stated that the balance of indebtedness due by
Great Britain to Canada on Mch. 31 was $144,408,746— exclusive
of certain outstanding items still unadjusted. On Dec. 13 a
trusted Accountant of the Department of Finance — G. J. Artz —
was arrested at Ottawa charged with the theft of $33,000 worth
of Securities ; on the same day J. E. Rourke, Comptroller of Cur-
rency in the Department, committed suicide under the belief
that he rested under suspicion ; a week later the Minister issued
a statement that outside Auditors had been at work for the past
9 months in an independent audit of the Department under sup-
ervision of George Edwards, C.B.E.,F.C.A., and that this had in-
cluded a complete examination and verification of the public ac-
counts, generally, and particularly of all transactions in connec-
tion with the War and Victory Loans.
It was intimated that the Auditors had completely investi-
gated the Public Loans since 1914 and reported that all sums
properly accruing to the revenue had been accounted for. Con-
currently, the checking of interest payments amounting to $140,-
000,000 annually, had been taking place. Payments of coupon
interest on the New York loans were completely investigated
and reported upon. It was this portion of the Audit which dis-
closed the over-payments of about $33,000 resulting in the charge
of theft, mentioned above. Many other onerous elements in the
work of the Department and its complicated transactions had
been analyzed and the Auditors at this time were completing
their work on the verification of accounts affecting the Public
Debt. On Dec. 21, it may be added, Artz was sentenced to three
years in the Penitentiary.
An incident of the Session was the Resolution passed by the
House supporting a Government proposal for the issue of a
five-cent nickel coin in Canada similar in size and style to that
of the United States— except that it would be 100 per cent, nickel
in composition. Another was the Hon. R. Lemieux's proposal
NATIONAL FINANCE AND TAXATION; THE DRAYTON BUDGET 31
on Apr. 18 — withdrawn after discussion — that a Finance Com-
mittee of the House should be created similar to one establish-
ed in the British House of Commons, first in 1913 and later in
1917 and 1918. This Committee had as its first function the
analysis and scrutiny of expenditures, and under the chairman-
ship of Sir Herbert Samuel it had made enormous savings for
the country ; the appointment of such a Standing" Committee by
the Canadian Government at an early period in each Session
would, he claimed, make for economy and efficiency. Address-
ing the Bond Dealers' Association in Toronto on June 9, Sir
Henry Drayton gave the following figures of Dominion and
Provincial per capita taxation which would seem worthy of
record here :
1916 1919
Canada $21.14 $35.42
Prince Edward Is... 4.83 6.97
Nova Scotia 423 6.32
New Brunswick .... 4.33 7.04
Quebec 429 5.32
1916 1919
Ontario $ 525 $ 7.79
Manitoba 11.17 13.73
Saskatchewan 825 10.77
Alberta 1224 1620
British Columbia .. 17.69 13.76
Questions of Taxation were much discussed during the year
but, burdensome as the taxes seemed, they were trifling com-
pared with those borne by many other countries and, notably,
Great Britain where, in 1918-19, official statistics showed that a
taxable income totalling £1,287,278, 171 realized to the Govern-
ment £303,630,376 in revenue ; that the taxes covered almost
everybody and included almost everything in their scope — Lands
and Houses, Profits from occupation of lands, income from Brit-
ish and Foreign Securities, Profits from Business, Professions,
Employments and Weekly Wage Earnings, Salaries of Govern-
ment, Corporation and Public Company officials. In Canada,
during 1920, a total of $87,223,207 was collected by the Dominion
Government through Income and Business Profits taxes ; of this
total $42,286,940 was the product of Income taxation. The allo-
cation of this latter amount was stated by the Dominion Commis-
sioner of Taxation as follows:
Occupation
Agrarians
Professionals
Employees _
Number
Assessed
16,652
19,366
111 621
Amount
Received
$ 611,735
2,642,585
11,301,805
Per
Cent.
1-45
6-26
26-74
Average
per Head
$ 36.74
136.45
101 .25
Merchants
24483
7,689,521
18- 19
314.08
Manufacturers
3 277
8* 2 17* 730
19-44
2,507 . 70
All Others
18.858
11.823.563
27-79
627.00
In a letter to the press on Aug. 24, and replying to strictures
by the Farmers1 Sun, the Minister of Finance stated that to Mch.
31, 1921, a total of $227,723,892 had been collected in Canada
through the Income and Profits Taxes ; that of this the farmers
had contributed to the revenue $1,488,332; that in Ontario 187
out of every 100,000 of the rural population paid taxes, as against
4,150 out of every 100,000 of the urban population. Early in
January the tentative and not always efficient embargo on the
32 THE CANADIAN ANNUAL REVIEW
sale of Canadian securities abroad was removed; at the same
time the Roumanian Government failed to meet its interest on
the Canadian loan and in June following, the British Govern-
ment was asked by Sir George Perley, on behalf of Canada, to
see what it could do in the matter of collecting this interest and
that of the Greek Government which, also, became over-due. In
January the ban on the general export of gold from Canada was
continued from July 1st, when it expired, for another year; on
June 27, by a judgment of Mr. Justice Audette, in the Exchequer
Court, Ottawa — the King vs. Hon. J. E. Caron — salaries of Min-
isters in the Provincial Governments and indemnities of Mem-
bers of Provincial Legislatures were declared liable to Income
tax; in the fiscal year ending June 30, 1921, the Canadian Gov-
ernment exported $25,087,000 of gold to the United States.
The Business Profits and Sales Tax were largely discussed
during the year. The Retail Merchants' Association advocated,
through its various boards and branches, the imposition of a
general Sales tax on all lines of merchandise, to be collected
from the manufacturer and the importer, as the case might be,
and absorbed by the retailer in the same way as all other taxes
were absorbed. In Toronto on Mch. 31 a joint Conference of
the Dominion Retail Merchants' Association, the Canadian Credit
Men's Trust Association, the Wholesale Grocers' Association
and the Canadian Manufacturers' Association — called by the
Minister of Finance — discussed the situation and passed a Reso-
lution declaring that the Business Profits tax should not be re-
enacted; that the Income war-tax, as regarded corporations,
should be repealed; that the Excise manufacturing tax on con-
fectionery should be abolished ; that the Sales tax should be ad-
justed so as to provide the additional revenue needed by the
Dominion Government.
Western Agrarian opinion as to these suggestions was ex-
pressed by the Grain Growers' Guide on Apr. 6 as follows : "Boil-
ed down, these proposals mean: reduce the taxation on wealth
to a minimum and pile up the taxation on the consumer. What
these business men are after is a system of taxation which will
press as lightly as possible on business wealth and rest squarely
on the shoulders of the consumer, who, if he does not happen to
be able to pay it, can escape it by adjusting his life to a subsist-
ence basis." Another proposal much discussed in the United
States was a general Turnover Tax of one per cent, as a sub-
stitute for the Profits and Income Taxes. Meyer D. Rothschild
of New York and some other American speakers presented the
idea to Canadian Clubs, etc. ; it was claimed by the U. S. Retail
Dry-goods Association that present taxes in, practically, both
countries took 25 cents out of the consumers' dollar while the
roposed tax would not average 3 per cent, on reaching the con-
sumer. The basic items of taxation were summarized, as fol-
lows, on gross sales or receipts :
THE BANKS AND THE COUNTRY; BANKING CONDITIONS OF 1921 33
Sales of goods, wares and mer- Receipts of Commission by
chandise sold by manufacturers Brokers.
and dealers. Receipts of Advertising Agents.
All Rents and Royalties. Receipts of Architects, Account-
Receipts of places of Amuse- ants, Lawyers and Physicians.
ment and Clubs. Receipts of Insurance Companies.
Sales of Real Property. Gross Receipts from Personal
Receipts of Public Utilities. services.
Receipts of Interest and Commis- Hotels and Restaurants, Receipts
sion by Banks. of Barber shops and Livery men.
At the Conference mentioned above, though agreement was
reached on the Resolutions by retailers and wholesalers on the
one hand and manufacturers and importers on the other, they
differed greatly as to interpretation. It was claimed that a Turn-
over Sales Tax would be cheaply and easily collected; would
yield the required revenue, promptly and regularly ; would bear
equally in proportion on all the people ; would emancipate com-
merce at a critical time in the nation's industrial history; and
should prove the final modern system of business taxation. A
questionaire sent out by the Montreal Board of Trade in this
connection evoked many replies of which 90 per cent, favoured
the Turnover plan. The Government, however, decided on the
abolition of the Excess Profits Tax and for an increase of the
existing Sales Tax on domestic goods. At Hamilton on May 10,
G. H. Douglas, Chairman of the local Manufacturers' Associa-
tion, urged it as the final solution of the Taxation problem ; the
Canadian Reconstruction Association issued a statement claim-
ing that such a tax was under trial in France but had not realized
the returns expected ; Norman Lambert, speaking for the Council
of Agriculture, declared in a press statement of June 25 that
the existing Sales Tax was a burden upon rich and poor alike, a
relic of the middle ages and modern Mexico, a poor revenue-
getter and dangerous in its insidious character. In November
official figures were issued from Ottawa showing that in the 17
months of its application, the Sales Tax — June, 1920, to October,
1921, — had realized a total revenue of $73,527,709. According
to a Parliamentary statement on May 16 the Income Tax in the
fiscal year 1920-21 had realized $46,381,806; the figures for 1918-
19 were $9,343,419, and for 1919-20 $20,264,419. The Business
Profits Tax in the three years realized a total of $117,956,646.
It is a question if any Banking system in the
The Banks world came through the stern test of a world war
and the and the succeeding trials of inflation and deflation
Country: wjth a better record than that of Canada. This may
ditions and" ^e sai(* despite the amazing details of the Merchants
Appoint- Bank case. The organized effectiveness of Bank-
ment* of ing action in a national sense was obvious ; the
the Year. warnings and policy as to undue inflation were on
record ; the contraction of loans and cautious man-
agement of 1921 were well known and understood. The branch
34 THE CANADIAN ANNUAL REVIEW
system made adjustments more easy and uniform throughout the
wide extent of the Dominion than was the case in the United
States; its facilities for financially carrying the crop shipments
of each succeeding year were universally recognized.
During 1921 Bank deposits, loans and discounts, call loans,
all showed a decline from the previous year but, at the same time,
the purchasing power of money materially increased so that the
net result of the process was not oppressive. So with the de-
crease in circulation in its adjustment to meet the falling of com-
modity prices. Bank deposits payable after notice on Dec. 31,
1920, were $1,293,007,488 and at the end of 1921 were $1,240,807,-
268 or the small difference of $53,000,000; obviously there was a
continued popular confidence in the Banks and a financial con-
dition not so bad as the general depression in business activities
would indicate. Deposits on demand were $657,496,742 at the
former date and $540,942,522 on Dec. 31, 1921, or a decrease of
$116,000,000. Bank loans and discounts at home and abroad and
call loans, with loans to Provincial Governments and municipali-
ties, totalled on Dec. 31, 1920, $1,881,005,506; at the close of
1921 the figures were $1,674,858,684. A decrease of $200,000,000
in Loans and of $166,000,000 in Deposits was a good showing for
Canada under current conditions and for Banking management —
if not for profits.
Speaking as to this to the Canadian Bankers' Association on
Nov. 11, President C. A. Bogert pointed out that: "Considering
the value of the dollar now, as compared with a year ago, the
savings deposits indicate a much greater surplus of actual wealth
as represented by the products of labour." He added the follow-
ing statement : "May I express the conviction that, when we re-
turn to an era of prosperity and confidence, it will be again dem-
onstrated that under the Canadian banking system we have been
able to cope successfully with difficulties which at present seem
formidable. The Canadian Bank Act, as it at present stands,
admirably meets the conditions and requirements of this country
and the needs of the people. This, unfortunately, is more fully
appreciated by financial experts in other countries than by many
sections of the Canadian public."
At the same time what were called immediately liquid assets
—specie, Dominion notes, gold reserve, Bank balances due in
London and New York, Government securities and call loans
abroad-increased from $811,413,792 on Dec. 31, 1920, to $826,-
252 1 6 on Nov. 30, 1921. The difference between Asset^and
Liabilities of the : Banks as a whole remained the same in the two
years-about $275,000,000 in favour of the Assets-but there was
reduction of both Assets and Liabilities by $300,000,000 It
may be added that, in the United States during the fiscal year
decWr 3£>^'±e t0tal resources of the National Banks
declined from $224 96,000,000 to $19,638,000,000. Deposits during
the same period decreased from $17,155,000,000 to $15,142,000,-
THE
THE BANKS AND THE COUNTRY; BANKING CONDITIONS IN 1921 35
000. The profits of Canadian Banks in 1920 and 1921, compiled
by the Toronto Globe at the close of the year, were as follows :
Profits 1920 1921 Profits 1920 1521
Royal $4,253,649 $4,037,836 Molsons $822,718 752,389
Montreal 4,033,995 3,949,796 Standard 776,310 794,369
Commerce 3,306,243 3,116,136 Hochelaga 649,739 630,902
Nova Scotia 1,925,478 2,327,422 Nationale 567,372 544,945
Dominion 1,169,703 1,188,511 Provinciate 333,882 425,647
Imperial 1,379,318 1,287,061 Home 268,895 278,556
Union 1,603,842 1,342,389 Sterling 251,346 255,976
Toronto 1,017,371 926,125 Weyburn 62,220 50,493
Hamilton 847,104 888,018
Total $23,259,185 $22,796,571
Profits of $22,000,000 divided amongst the shareholders of
17 Banks with a total Capital and Rest of $246,000,000 was not
an unreasonable percentage for unquestioned public service.
The late William Moffatt, General Manager of the Imperial Bank
of Canada, pointed out, on May 25, in his annual address to
Shareholders, that: "If you consider the situation carefully you
will see that a Bank's assistance starts at the beginning of every
enterprise — farmers obtain advances to prepare their soil, to buy
seed, to plant, reap, thresh, and market their grain. The Banks
also help manufacturers to purchase raw material, to convert it
into saleable goods, and to market the finished product — so on all
through all lines of business. The Banks of the country may,
therefore, be looked upon as essential partners in the develop-
ment of the Dominion." Meanwhile, the Bank clearings of
Canada, which in 1919 were $16,709,995,136 and in 1920 were
$20,257,021,285, had decreased to about the 1919 total, and were
$17,243,057,683. By cities they were as follows:
Brandon $ 39,282,713 Quebec . 302,491,518
Brantford 62,020,507 Regina 203,659,640
Calgary 335,465,202 St. John 147,301,169
Edmonton 60,288,619 Saskatoon 100,523,291
Fort William 43,619,961 Toronto 5,104,893,766
Halifax 181,802,598 Vancouver 708,205,932
Hamilton 297,932,727 Victoria 122,416,244
Lethbridge 35,350,739 Winnipeg 2,682,441,103
London 161,956,960 Kitchener 51,159,583
Medicine Hat 21,927,687 Sherbrooke 53,641,710
Montreal 5,720,258,173 Windsor 162,268,354
Moose Jaw 74,739,761 Moncton 56,262,833
New Westminster .... 30,735,069 Kingston 33,872,694
Ottawa 404,237,674
Peterboro 44,295,516 Total $17,243,051,743
Banking incidents of the year were many and varied. The
appointment of Edward R. Peacock, President of the Barcelona
Traction Co., with offices in London, England, and a Canadian
well-known in Toronto, as a Director of the Bank of England,
aroused much interest in Canada. Mr. Peacock told a Financial
Post representative on July 29 that Britain would soon be looking
beyond London for projects to finance, as it did before the War,
and that Canada should attract the attention of English invest-
ors to possibly a greater degree than before : "We haven't the
money just now to invest outside that we would like to have,
36 THE CANADIAN ANNUAL REVIEW
but our own demands are being met, and the time is coming
when we will have money for Canada and other countries." Mr.
Peacock was an advocate of the formation of a Central Reserve
Bank in each of the Dominions and the Bank of England, which
already was in close relations with the Federal Reserve Board
of the United States, had aided largely in the establishment of
such an institution in South Africa. Sir Campbell Stuart, K.B.E.,
Managing Director of The Times, when in Montreal on May 9,
told the press that: "In the opinion of responsible bankers and
expert financiers, the establishment of a chain of independent
Reserve Banks in different parts of the Empire is essential to the
satisfactory adjustment of their financial relations." As to this,
however, Sir Vincent Meredith told The Times in London early in
the same month, that the suggestion had been considered at
meetings of Canadian bankers, and the almost unanimous opinion
was that it would be difficult to improve on the present banking
system, and that a Reserve Bank would be "an unnecessary and
expensive luxury."
The action of the Corporation Agencies, Limited, of Mont-
real — of which C. H. Cahan, K.C., was President — against the
Home Bank of Canada, was an important legal case at the close
of 1920 and during 1921. On Feb. 11 Mr. Justice F. S. Mac-
lennan, in the Superior Court at Montreal, gave judgment and
ordered the Home Bank of Canada to pay the Corporation $205,-
960.37, representing alleged defalcations of C. H. Cahan, Junior,
while he was Director of the plaintiff Corporation. It was al-
leged by the plaintiff that between Mch. 29, 1919, and Dec. 20 of
the same year, young Cahan, as a Director of the plaintiff Com-
pany, signed from time to time 96 cheques in the name of the
said Corporation, drawn on the Merchants Bank of Canada, each
made payable to himself, and that with the counter-signature of
B. F. Bowler, Secretary-Treasurer of the Corporation Agencies,
young Cahan deposited the cheques to his personal and private
account in the Home Bank. He was alleged to have drawn out
the proceeds for his own personal use and benefit. The defence
was that in the light of the younger Cahan's authority as a Di-
rector, there was no element of warning in his actions, or in the
cheques, which would indicate that he was engaged in improper
transactions or was committing a breach of faith. The Bank, it
was submitted, took the cheques in good faith and for value and
consequently, was not liable to the plaintiff Company for losses
The Judge's finding was that :
r iJhr l°rm ?f lfe che(lues on their face was notice to defendant that
j~ n. Lanan, Jr Director and agent of plaintiff, was appropriating to
his own use and benefit the funds and moneys of plaintiff, and defendant
as to the authority and right of C. H. Cahan, Jr.,
, t- . . aan, .,
to issue and use the cheques in question for his own benefit and profit.
of C HrA ' ry r(;fnTne from makine any inquiries as to the right
hisn'rinHnal f 'i?-r" tO 'u6 ch£eclucs and to use the funds and moneys of
ful act, Li ?r r 1SKi°T btnefiJ and PurPoses, participated in said wrong-
U acts and is liable to the plaintiff for the amount of each and every
THE BANKS AND THE COUNTRY; BANKING CONDITIONS IN 1921 37
one of the cheques fraudulently and wrongfully issued and delivered to
defendant, and collected by defendant from the plaintiff's Bank.
Appeal was entered but judgment was not given up to the end
of 1921. During the year there was a resumption in Toronto by
the Bankers' Educational Association, of a series of lectures and
classes under which, for the third year in succession, an effort
was made to give Bank officers, especially young managers and
accountants, a background of general cultural information which
would fill out the knowledge they possessed through their bank-
ing practice. The President of the Association was H. V.
Franklin Jones of the Commerce, and amongst the subjects dealt
with were Economic geography and commercial development,
Canadian history and government, Company and commercial
law, the Finance of Industry, Partnership and Companies. Else-
where this development also continued during the year with a
general correspondence organized by Queen's University, Kings-
ton, an intensive course by McGill University, Montreal, local
courses established in Toronto, Halifax, Winnipeg, Vancouver,
Montreal, lecture courses in Montreal L/Ecole des Hautes Etudes
Commerciales under direction of Dr. Henri Laureys and, as a
Faculty of the University of Montreal, a course of evening lec-
tures on business subjects established by the French-Canadian
banks in Montreal.
Following the wave of bandit attacks upon Banks which
marked several months of the year, the Canadian Bankers' As-
sociation offered in November a reward of $5,000 for the appre-
hension and conviction of anyone connected with recent Bank
robberies. At the annual meeting of this Association in Toronto
on Nov. 10, Sir Frederick Williams-Taylor was elected Presi-
dent. He had served as Inspector of his Bank for 6 years and
travelled much in Canada ; he had acted for 2 years as Manager
for the Bank in Chicago, 8 years in London, England, and, since
1913, had been General Manager at Montreal. This wide ex-
perience was now appropriately honoured and utilized. The
other officers were elected as follows :
Hon. Presidents. Vice-Presidents.
Sir Edmund Walker, c.v.o. H. A. Richardson.
Sir Vinvent Meredith, BART. Sir John Aird.
Sir George Burn. Charles E. Neill.
Edson L. Pease. Edward C. Pratt.
Henry T. Ross of Montreal was re-appointed Secretary-
Treasurer, and C. H. Cronyn Assistant Secretary. Other
incidents included the issue by the Canadian Bank of
Commerce of a handsome volume dealing with the services of
1,700 members of its Staff in the War and entitled Letters from
the Front, with an introduction by Sir John Aird, General Man-
ager of the Bank ; the publication by the same institution of an
elaborate History of the Bank, compiled by Victor Ross, a fin-
ancial journalist who, also, was well-known in finance ; the ap-
pointment of A. E. Phipps as General Manager of the Imperial
38
THE CANADIAN ANNUAL REVIEW
Bank of Canada in succession to William Moffatt who passed
away during this year ; the policy carried out, gradually, through
these months, under which the young women employed in the
Banks during the War and after, were very largely replaced by
men ; the inauguration of a Bankers' Clearing House at Kings-
ton, Ont., on Mch. 1st.
The Bank branches opened and closed during 1921 were
as follows: Montreal 3 branches opened and 5 closed; Commerce
9 opened and 17 closed; Hamilton 1 opened and 6 branches and 5
sub-agencies closed ; Dominion 7 opened and 3 closed ; Hochelaga
7 branches and 31 sub-agencies opened and 11 of the latter
closed ; Home 4 opened and 1 branch and 2 sub-agencies closed ;
Imperial 4 branches and 4 sub-agencies opened and 5 and 3 re-
spectively closed ; Molsons 2 branches opened and 4 closed ; Na-
tionale 4 branches and 30 agencies opened and 4 agencies closed ;
Nova Scotia 8 branches opened and 7 closed; Provinciale 3
branches and 25 sub-agencies opened and 4 of the latter closed ;
Royal 36 branches and 2 sub-agencies opened and 38 of the
former and 9 of the latter closed ; Sterling 2 branches opened and
3 closed; Toronto 4 and 8 respectively; Union 4 and 25 re-
spectively; Standard 1 branch and 2 sub-agencies opened and 5
of the latter closed.
Chief Banking Appointments of the Year.
Bank Position Name Place
Imperial General Manager A. E. Phipps Toronto
Director. George C. Heintzman Toronto
Montreal B.C. Superintendent of Branches..W. H. Hogg Vancouver
Assistant General Manager W. A. Bog Montreal
Nationale President J. B. Laliberte Quebec
Vice-President Nazaire Fortier. Quebec
Director. A. N. Drolet Quebec
Nova Scotia Branch Manager R. G. Wallace..... Hamilton
Hamilton Director Howard S. Ambrose Hamilton
Director. Allan B. Young Hamilton
Director. W. P. Riley Hamilton
Toronto Director. J. D. Chaplin St. Catharines
Merchants Director John Baillie Montreal
Director. Norman J. Dawes Montreal
Director. R. H. McMaster Montreal
Home Director T. A. Mitchell London, Eng.
Royal Supervisor of Branches in Ontario.. Norman T. Hillary Toronto
Supervisor, Central Western
Branches S. L. Cork Winnipeg
Dominion „... Director C. S. BlackweU Winnipeg
Imperial Branch Manager A. R. B. Hearn Montreal
Branch Manager. A. B. Duncan Winnipeg
Nova Scotia Superintendent of Branches P. W. Murphy Toronto
Commerce Director Miller Lash, K.C „ Toronto
Superintendent of Branches C. W. Rowley Winnipeg
Superintendent of Branches.... }. B. Corbet Calgary
Local Manager T. P. MacKenzie Port of Spain
Local Manager. E. B. Ireland Rio de Janeiro
Montreal Director Senateur Gaston Menier France
2nd Agent W. T. Oliver New York
3rd Agent S. C. Norsworthy New York
Assistant Superintendent of
Branches, B. C J. G. Hungerford Vancouver
Royal Director William A. Black Halifax
Supervisor, Maritime Provinces.. F. St. C. Harris Halifax
Supervisor, Alberta J. H. Menzies Calgary
Supervisor Southern Business C. C. Pineo New York
Supervisor in Brazil : C. E. Mackenzie Rio de Janeiro
Assistant Supervisor in Cuba B. O. Moxon Havana
loronto Western Superintendent F. H. Marsh Winnipeg
Uni°" President , W. R. Allan Winnipeg
Vice-President H. B. Shaw..... Winnipeg
Mpr . S-ireC4°r -vv H. A. Robson, K.C Winnipeg
Merchants Vice-President F.Howard Wilson Montreal
MERCHANTS BANK ABSORBED BY BANK OF MONTREAL 39
The Mer-
chant* Bank
of Canada;
Absorption
by the Bank
of Montreal.
This was one of the sensational incidents of
Candian finance in 1921. The Merchants Bank of
Canada was one of the older banks of the Dominion
and dated from 1861 ; it was founded by Sir Hugh
Allan, Andrew Allan, Hon. John Young and other
notable citizens of Montreal ; in 1877, when it rank-
ed as the second largest bank in Canada, it faced
serious difficulties and a re-organization; in 1902 H. Montagu
Allan became President and carried on the family interest — Sir
Hugh and Andrew Allan having preceded him in the post; be-
tween that year and 1911 there was a steady advance in busi-
ness and the Assets mounted from $34,168,284 to $81,928,961 ; on
Jan. 1st, 1921, they were $190,728,112.
The Board of Directors at this time was composed of Sir
Montagu Allan (President), who since the beginning of the
War had spent most of his time in England, F. Howard Wilson,
Vice-President, Sir F. Orr-Lewis, Bart., who also lived in Lon-
don and died during the year, Hon. C. C. Ballantyne, M.P.,
Farquhar Robertson, G. L. Cains, A. B. Evans, Thomas Ahearn
of Ottawa, Lieut.-Col. J. R. Moodie of Hamilton, Hon. Lome C.
Webster, Dr. E. W. Kneeland of Winnipeg, Gordon M. Mc-
Gregor of Ford, Ont., John Bailie, Norman J. Dawes and R. H.
McMaster. The Bank had 400 branches and 2,997 shareholders ;
D. C. Macarow, Manager for 10 years of the Montreal branch,
had, in 1916, succeeded the late E. F. Hebden as General Man-
ager, with J. D. G. Kippen, Assistant Manager for 8 years, ap-
pointed to the Branch management. The Auditors were Gordon
Tansley and Vivian Harcourt of the firm of Deliotte, Plender,
Griffiths & Co. The 58th Annual Meeting held on June 1st re-
ceived a Report for the year of Apr. 30, 1921, which showed net
profits of $1,402,820, a dividend of 12 per cent, and $1,050,000
premium in new stock which was added to the Rest and raised
its total from $8,400,000 to $9,450,000. The Assets of Apr. 30,
1921, were $190,367,409, the Liabilities $169,717,470. The figures
given in the monthly return to Ottawa and published officially
on Nov. 30, 1921, were as follows:
Assets
Gold coin and Dominion Notes
held $9,630,937
Deposits with Government and
Central Gold reserve 4,030,000
Notes and Cheques of other
banks held 9,334,057
Deposits with and amounts due
from other banks 1,606,881
Government, Municipal and
Railway securities held 28,033,727
Call and Short Loans. 11,756,686
Current Loans and Discounts 103,959,506
Loans to Provincial Govern-
ments and Municipalities 4,007,481
Over-due- Debts 2,700,465
Real Estate, Mortgages, Bank
Premises and Sundries 6,944,877
Liabilities
Notes in Circulation $13,239,700
Balances due Dominion and
Provincial Governments 14,623,804
Deposits payable on demand
and after notice 129,637,379
Deposits made and balances due
to other banks 3,358,268
Sundry Items 648,194
Total Assets $182,004,617
Total Liabilities $161,507,345
40
THE CANADIAN ANNUAL REVIEW
One month later the Government return for Dec. 31, 1921—
after the announcement of absorption by the Bank of Montreal-
showed the total Assets as $160,079,805 and the total Liabilities
as $147,253,616— a reduction of $22,000,000 in Assets and of $14,-
000,000 in Liabilities; the Rest had decreased to $1,500,000. Up
to this time there was no thought of trouble on the part of the
public — though it is an interesting fact that the Government
statement of Dec. 31, 1920, showed the overdue debts of the
Merchants as $1,371,652 and on Nov. 30, 1921, as $2,700,465 or
one-third that of the total for all the Banks in Canada. Early
in the year the Merchants Bank had been appointed as Canadian
representative of the new International Acceptance Bank, organ-
ized in New York a short time before with a capital and surplus
of $15,000,000 and with Paul M. Warburg as Chairman of the
Board — for the purpose of promoting and financing foreign trade.
There was no hint of trouble at the annual meeting and during
the autumn a vigorous campaign for Savings Bank deposits had
been initiated under the Christmas Club scheme with consider-
able advertising and publicity.
On Dec. 16 Montreal heard with astonishment and the
country with absolute amazement that the Chairman of the
Montreal Stock Exchange had received from Sir Montagu Allan,
President of the Bank, the following letter : "You are requested
herewith to withdraw Merchants Bank of Canada stock from
your list as arrangements have been made with the Bank of
Montreal, subject to the approval of the Governor-in-Council
and the shareholders of both Banks, to take over the Merchants'
Bank." Following a lengthy conference with his Board, the
President issued a statement that the Directors proposed to
recommend the absorption of the Bank by the Bank of Mont-
real; that some time before — in August, as afterwards appeared
— the Directors "having reason to fear that the Bank's affairs
were not in the condition as disclosed to them, came to the con-
clusion that it was necessary, in the Bank's interests, that a
thorough examination of the Bank's affairs should be made by
a suitable person." H. B. Mackenzie, General Manager of the
Royal Trust Co., had been appointed and his Report, when re-
ceived, was stated to show that the Bank's Rest or Reserve Fund
was "seriously impaired."
When the Report was finally made public, it showed that the
Bank would require over $8,000,000 to make its losses good and
snn°r^ended that the Rest be reduced from $9,450,000 to $1,-
500,000. It appeared that the two principal accounts, then in
liquidation and involving the heaviest losses, were those of
1 nornton Davidson & Co. and the Exclusive Ladies' Wear, Limit-
ed. It had been common knowledge that the Bank lost heavily
through the failure of Thornton Davidson in July, 1920, and it
was said in the Report that advances to this firm, when the
MERCHANTS BANK ABSORBED BY BANK OF MONTREAL 41
Bank's books were closed at the end of April, 1916, stood at
$579,200, against securities which apparently left a good margin
in the Bank's favour. These advances, however, increased
gradually without, it was asserted, the authorization of the
Board of Directors, and in July, 1920 (the date of the bank-
ruptcy) amounted to about $4,500,000 against securities which
proved lamentably insufficient, and eventually involved a loss of
about $4,000,000.
The Exclusive Ladies' Wear, Limited, loss was described as
the outgrowth of an attempt early in 1916 to save a bad debt of
$65,000. With apparently this end in view, the debtors were
allowed advances by the management, without, it was asserted,
authority from the Directors, for new operations, and they ex-
panded rapidly on the Bank's money. Later on the affairs of this
Company and of two smaller ones of the same kind were grouped
together under new control, in the vain hope of bettering the
position. Meanwhile, the credits granted to these Companies
had increased from $225,000 in December, 1916, to nearly $1,-
300,000 in 1920. The advances were nominally covered by trade
paper and pledge of merchandise, but these realized only a frac-
tion of the value placed upon them, and the result was a loss of
about $1,000,000. Other losses were made in the Montreal Office
and of these, also, Sir Montagu claimed that the Directors were
quite ignorant.
When the facts were thus .presented to the President and
Vice-President on Nov. 12, 1921, they asked Mr. Mackenzie to
accept the post of General Manager, but he declined and they
then decided that the best thing to do was to seek amalgamation
with some other Bank. Negotiations commenced with the Bank
of Montreal and the result was announced on Dec. 16. At this
date Merchants Bank shares were quoted on the Exchange at
$157 and Bank of Montreal at $212. Following the publication
of the President's statement, D. C. Macarow, General Manager,
stated to the press that the last annual statement of the Bank,
namely, that of Apr. 30, was prepared and audited with more
than usual care, in view of which and also of the fact that noth-
ing had happened since except in the direction of improvement,
he did not understand the basis on which the President's state-
ment rested.
At the same time it was announced by the Bank of Montreal
that Mr. Mackenzie had been appointed Acting General Manager
of the Merchants and Major S. C. Norsworthy, D.S.O., Acting
Assistant General Manager; on Dec. 17 it was stated at Ottawa
that the Minister of Finance (Sir H. Drayton) had given pre-
liminary consent to the proposed absorption on the ground of
public interest. The largest shareholders of the Bank, it may
be added, were Sir H. Montagu Allan, 2,625 shares ; Bryce Allan,
1,059; Bankers' Trust Co., 3,695; L. G. Beaubien et al., 1,133;
42 THE CANADIAN ANNUAL REVIEW
J. M. Kilborne, Owen Sound, 1,500; the Thomas Long Estate,
1,000; Sir F. Orr-Lewis, personally and in trust, and Lady Orr-
Lewis, 3,566. The Staff numbered about 2,300. On the 21st, fol-
lowing varied and disquieting rumours, Sir F. Williams-Taylor,
General Manager of the Montreal, told the press that: "You
may quote me as saying that it is unquestionably a fact that the
Bank of Montreal has undertaken, subject to ratification by the
shareholders — which will no doubt be forthcoming — to take
over all the assets and assume all the liabilities of the Merchants'
Bank of Canada. The capital of the Merchants Bank is intact,
and from the depositors' point of view — that is, the general
creditors' point of view — the deposits in the Merchants Bank of
Canada are safe beyond question, as safe as the Bank of Eng-
land." Two days later Sir Montagu Allan issued a note to the
shareholders and copy of the proposed agreement between the
two Banks. He stated that, following Mr. Mackenzie's report,
a Committee of the Directors had been named to negotiate with
such banks as they considered advisable :
As a result of these negotiations, an offer was obtained from the
Bank of Montreal, subject to the approval of its Shareholders and of
the Go vernor-in -Council, to buy all the undertaking, assets and rights of
the Merchants Bank of Canada, and to assume all its liabilities, for the
price and consideration of a cash payment of $1,050,000, together with a
payment of a block of Bank of Montreal stock which would represent
one share of that stock for every two shares of the issued stock of the
Merchants Bank of Canada. Your Directors have unanimously decided
to recommend to the Shareholders the acceptance of the Bank of Mont-
real's offer.
There was some public criticism of the arrangement with
the Montreal Star as the most vehement critic. It was claimed
that under the above plan Merchants Bank shareholders suffered
a loss of income of 50 per cent, minus the earnings on $10 per
share, making the actual loss of income approximately 40 per
cent. Thus, a holder who received $6,000" in dividends would
afterwards receive $3,600. The above journal declared on Dec.
24 that : "It is not the fault of the Bank of Montreal that it has
made a coup. The $4,500,000 to be lost by the sacrificed Bank
shareholders has to be borne by some 18,000 individuals, many
of them widows and orphans. It is an appalling case, wholly
unnecessary if the larger Banks had been brought in to help the
situation." The probabilities, however, are that the losses were
too heavy and the responsibilities of the other Banks too large
at this time to make assistance on such a scale advisable. The
usual arguments applicable to all Banking consolidations were
also heard and some strong Toronto opinion was inclined to
oppose so great a centralization of Banking power. The Mont-
real Gazette and the Financial Times were favourable to the
merger ; the Toronto Financial Post demanded an investigation.
By the close of the year the merger was accepted as a fact, the
Directors of both institutions had accepted the agreement, the
THE BANKS AND THE FARMERS; BANKING INTERESTS ABROAD 43
Minister of Finance had given his tentative consent, and the in-
coming Minister had expressed no opposition.*
To the Bank of Montreal it was a great accession of strength
and business. The Banks were represented at a large number
of the same points and much economy in operation would re-
sult ; the good-will of the Merchants was considerable through-
out the country and was estimated at a value of $1,000,000; the
place of the Bank of Montreal as the biggest Bank in Canada
was settled for the time at least. The process of absorption was
not a new one to this institution ; it had in the past acquired the
Exchange Bank of Yarmouth, the People's Bank of Halifax, the
Ontario Bank, the People's Bank of New Brunswick; it now
ranked with the greater Banks of the world. Taking the com-
bined statistics of the two united institutions, as on Dec. 31,
1921, after the Merchants' affairs had been somewhat re-organ-
ized, the total paid-up capital of the two Banks was $32,500,000,
the Rest $23,500,000, the notes in circulation $45,570,219, the
total Deposits $517,727,509, the total of Dominion, Provincial,
Municipal and Railway securities held $61,851,736, Call and
Short Loans $108,111,091, the Current Loans and Discounts
$273,413,821. The Assets of the two Banks totalled $670,698,037
and the Liabilities $610,276,417. Ensuing re-adjustments would,
of course, greatly change these totals, but they afford a general
idea of the largeness of the transaction. Incidentally this ab-
sorption cut the Chartered Banks of Canada down to 17 as
against 28 a decade before.
The Banks
and the
Farmers;
Canadian
Banking
Interests
Abroad.
The question of Banking relations to the Agri-
cultural community became increasingly important
in 1921 ; as the Farmers' organizations grew in
political strength certain views held by them as to
Banking conditions found more vigorous expres-
sion. Local dissatisfaction, especially in some
Western centres, was enhanced by the depression,
the great decrease in prices of farm products, the
influence of the U. S. tariff duties and the restricted markets for
live cattle. The movement in the Western Provinces and in
Ontario for the establishment of special Banking or Loaning in-
stitutions under Government control and responsibility were, at
once, indications of current discontent and proofs of restlessness
of thought.
The Banks were alive to the situation and on Jan. 26 C. A.
Bogert, President of the Canadian Bankers' Association, told
his Dominion Bank shareholders that Farm loans by Govern-
ments had grown greatly in certain American States, that this
expansion was largely caused by the disinclination of farmers
and dealers in live-stock to sell on falling markets, and that
*Note. — The Shareholders in January, 1922, also accepted the Agreement, and it
was eventually approved by Mr. Fielding as the new Minister of Finance.
44 THE CANADIAN ANNUAL REVIEW
without the assistance and facilities of the Federal Reserve
Bank wide financial disaster would inevitably have taken place.
This statement followed: "To a lesser degree, the same condi-
tions prevail in Western Canada, but we find that, notwithstand-
ing the scarcity of money, advances by the Canadian banks to
borrowers in the Provinces of Manitoba, Alberta and Saskatche-
wan, alone, increased by $90,000,000 in 1920, as compared with
the previous year." This, he declared to be a striking illustra-
tion of the soundness and elasticity of the Canadian banking
system under which the banks successfully dealt with a situation
which could not possibly have been handled by small local bank-
ing corporations.
In Ontario, where Rural Credits and a sort of Government
Bank were under consideration, Mr. Bogert appeared on Feb. 18
before the Agricultural Committee of the Legislature, as did
Thomas MacMillan, Chairman of the Provincial Committee of
Inquiry. The latter claimed that: "The farmers are unable to
obtain a satisfactory line of credit, as the Banking Act is de-
signed to assist city men. Short term loans, such as the Banks
grant (three months), are of no use to the farmers." In his
reply Mr. Bogert stated that there was no class in the com-
munity which the Banks were more anxious to serve than the
farming community; expressed willingness to co-operate with
the Government if they decided to inaugurate a system of Rural
Credits in this Province ; stated that there were 1,500 branch
banks in Ontario, many of which were located in small centres
but admitted that, in this Province, deposits were much greater
than the loans. He criticized the Manitoba system of Rural
Credits and declared that the Banks had lost money through lend-
ing to Western farmers. In reference to Bank advances through
Rural Credit Societies in Manitoba, Mr. Bogert stated that of
$89,000 advanced in 1918 there was still outstanding $20,000; of
$841,000 in 1919, a balance of $205,000 remained due; and of
$93,000 in 1920 there was a balance of $68,000.
Meantime, the Manitoba Government was taking deposits
m its special Banking system ; British Columbia was discussing
establishment of a Provincial Bank under proposals made by the
Minister of Finance (Mr. Hart) ; the Alberta United Farmers
were avowedly supporters of something of the kind in that
Province— though the proposal was strongly opposed by journals
such as the Calgary Herald. At the Convention of the U. F. A.
on Jan. 18, George Bevington of Winterburne moved a Resolu-
tion declaring that: (1) "The Banking system is a mystery to
most of the rank and file of the people ; (2) that there exists a
grave suspicion that the financial institutions are taking a very
injust toll of real values from the people who produce real
wealth— in return for fictitious values and service; (3) that it is
)ur duty to prevent exploitation and spread education on these
natters ; (4) that this Convention goes on record as in favour
THE BANKS AND THE FARMERS; BANKING INTERESTS ABROAD 45
of the nationalization of our Banking and credit system." It
was carried unanimously after a speech describing the Banking
system as a National and very profitable monopoly. J. H.
Haslam of the Royal Grain Commission advocated a Central
Bank which he described (Calgary, June 13) as a sort of Bank
of England, Bank of France, and U. S. Federal Reserve Bank
all in one. The leaders of the Agrarian movement were at this
time watching closely conditions and experiments in the United
States as to Government Farm Loans and other undertakings;
certain forms of change had a set-back in the Dakota banking
failures and the difficulties of the Non-Partisan League leaders ;
various organizations were looking forward to changes in the
1923 revision of the Bank Act.
It is interesting to note, in this connection, that the U. S.
Federal Farm Loan Act of 1916 established 12 Land Bank Dis-
tricts at the following centres : Springfield, Baltimore, Columbia,
Louisville, New Orleans, St. Louis, St. Paul, Omaha, Wichita,
Houston, Berkeley, Spokane. A Federal Farm Loan Board was
appointed with the Secretary of the Treasury as Chairman and
with G. W. Norris and then C. E. Lobdell as Commissioner ; a
Federal Land Bank was established in each District with the
right to form District branches ; at the same time National Farm
Loan Associations were organized and these supplied a part of
the capital which, in the case of each Bank, was to be a minimum
of $750,000 — they also formed the medium through which loans
were made to the individual borrower; Federal Government
stock in the Land Banks was to receive no dividend, but indi-
viduals, corporations, State Governments, etc., could receive
dividends when declared; Loans were to be made on duly re-
corded first mortgages with an agreement of re-payment upon
an amortization plan of a fixed number of specified installments
and the rate not to exceed 6 per cent, or the amount of loan to
exceed $10,000; the Land Banks were to issue and sell Farm
Loan Bonds to cover the mortgage investments ; no deposits
could be received except from stockholders.
Corporations, also, were organized to be known as Joint
Stock Land Banks, for carrying on the business of lending on
farm mortgage security and issuing farm loan bonds ; the share-
holders were to be individually responsible, equally and ratably,
and not one for another, for all contracts, debts, and engage-
ments of such bank to the extent of the amount of stock owned
by them at the par value; the capital was to be $250,000 sub-
scribed and one-half paid up in cash. These Banks were private-
ly owned and managed institutions, operating under the super-
vision of the Federal Farm Loan Board. Salaries were paid out
of earnings and their profits became dividends on privately-
owned capital stock. They also were limited by law to a gross
charge of 6 per cent, for interest. The Federal Farm Loan Board
had power to organize Federal Land Banks and it supervised
46 THE CANADIAN ANNUAL REVIEW
the issue of bonds and the business of the whole system On July
11 1Q21 the Mortgage Loans issued totalled $Jo4,/J8,851 ; the
capital stock included $6,598,770 held by the United States Gov-
ernment and $18,531,622 by the National Farm Loan Associa-
tions ; the Farm Loan Bonds authorized and issued were $3/3,-
106 575 • the net earnings to date were $5,809,338 and the divi-
dends paid $2,185,894.
Bonds were exempt from taxation and this feature of the
legislation, as well as the creation of the Joint Stock Land Banks,
was upheld as constitutional by the U. S. Supreme Court on Feb.
28 1921. During this year the capital of the Federal Land Banks
was increased by law to $45,000,000 and under the Kellogg Ex-
port Trade Bill the U. S. Government was authorized to loan up
to $1,000,000,000 to aid in financing the export of farm products.
There was one important condition in the United States which
did not exist in Canada— the need of adjusting loans from the
older agricultural States to the newer ones. This the Land Bank
system did, but in Canada the process was already in operation
by the Branch bank system ; a condition which, also, was aided
by the Trust, Insurance and Loan Companies. The latter, ac-
cording to V. Evan Gray, Superintendent of Insurance for On-
tario, had, over a 30-year period, loaned their money as follows :
Place 1890 Place 1920
Ontario $84,600,358 Ontario .$58,426,154
Western Provinces. 64,374,160
Elsewhere 10,399,875 Elsewhere 21,169,178
Total $95,000,233 Total $143,969,492
The Banks in 1921 followed these agricultural developments
very closely. The Financial press, in different forms, asked if
there was any agricultural district in the whole world that was
provided with better banking facilities than the farming com-
munities of the Canadian Northwest; was there, indeed, any
other that had equal facilities? It pressed the question as to
whether there really was any one who was deserving of bank-
ing credit — that is, a person with something to pledge in return
— who could not borrow from Canadian banks. It was admitted
that Canadian banks did not lend directly on land or real estate
and this was claimed to be a wise and necessary provision of the
law ; it was argued that the Rural Credits and other Farm bank-
ing schemes were preventing or retarding investment in the
West. Much was said in this connection as to the situation in
North Dakota with its four years of experiment in Socialistic
legislation; the dominance of agricultural interests and policy
in the State Bank of North Dakota and its loaning of millions on
farm mortgages, to small local banks, and to State-owned in-
dustries—its financial difficulties during 1920 and 1921 with in-
ability to sell bonds against the farm and industrial advances ;
THE BANKS AND THE FARMERS; BANKING INTERESTS ABROAD 47
the suspension of a number of small State banks caused, large-
ly, by the reduced prices of grain products and the final defeat
of the Non-Partisan League Governor of North Dakota, his col-
leagues and T. O. Townley, their leader.
There were no serious Banking developments in Canada,
except the Merchants Bank case, while the farmers of the West
undoubtedly found that the existing depression made the possible
services of these institutions even more essential than before.
At a Conference (Aug. 23) held in Ottawa between Sir Henry
Drayton, Minister of Finance, Hon. Dr. Tolmie, Minister of
Agriculture, and C. A. Bogert, President, Sir F. Williams-Taylor,
Sir John Aird, C. E. Neil, E. C. Pratt and J. P. Bell, officials, of
the Canadian Bankers' Association, respecting the condition of
the Canadian beef-cattle industry, it was recognized that some
special measures should be taken for the protection of ranchers,
cattle-dealers, cattle feeders and farmers. Owing to restricted
markets and a pronounced reduction in prices, Canadian cattle
could not at this time be sold to advantage. As a result of the
discussion, assurance was given by the Bankers that all reason-
able consideration would be extended to deserving borrowers
against live-stock, especially with regard to periods of loans and
renewals, and that no undue pressure would be made for liquida-
tion of advances until there was a marked improvement in
market conditions. At this time, also, it was stated that prac-
tically all of the Banks doing business in the West had strong
Western business men on their Boards of Directors, as the fol-
lowing list indicates :
Bank Name of Director Address Bank Name of Director Address
Commerce...G. F. Gait Winnipeg Royal A. McTavish Campbell.. Winnipeg
Dominion.... Sir Augustus M. Nanton.. Winnipeg Toronto W. R. Bawlf Winnipeg
E. W. Hamber Vancouver Union John Gait Winnipeg
H. W. Hutchinson Winnipeg R. T. Riley ...Winnipeg
Hamilton ....Isaac Pithlado, K.C Winnipeg
Imperial Sir James Aikins, K.C Winnipeg
Merchants.. E. W. Kneeland Winnipeg
Montreal J. H. Ashdown Winnipeg
Royal G. R. Crowe Winnipeg
D. K. Elliott Winnipeg
W. H. McWilliams Winnipeg
E. L. Drewry Winnipeg
M. Bull _ Winnipeg
W. R. Allan Winnipeg
J. S. Hough, K.C Winnipeg
W. H. Malkin Vancouver
G. H. Balfour. Winnipeg
H. B. Shaw. Winnipeg
Capt. Wm. Robinson Winnipeg Sterling W. A. Matheson Winnipeg
Canadian Banking Interests Abroad. The system of bank-
ing in Canada, with the large number of branches operated by
the greater Banks from Halifax to Vancouver, together with
numerous branches or agencies in the United Kingdom, the
United States, South America and Mexico, Paris, Madrid, and
other European capitals, with, also, Eastern interests such as
that of the Union Bank and the National Park Bank of New
York, gave to Canada considerable influence and prestige abroad
of a financial character. It also trained able men, who found
high places, notably, in the Banks of the United States. During
1921, for instance, A. C. Way of Belleville, after varied experi-
ences, became Vice-President of the First National Bank of Los
Angeles ; Archibald Kains, a one-time official of the Canadian
48 THE CANADIAN ANNUAL REVIEW
Bank of Commerce, became President of the newly-formed Fed-
eral International Banking Co., with its $7,000,000 capital ; during
1920 Vere C. Brown, also of the Commerce, had become an
Executive officer of the National City Bank of New York, and
John McHugh, Vice-President of the Mechanics and Metals Na-
tional Bank, was the chief promoter of the $100,000,000 Foreign
Trade Financing Corporation which, later on, went into volun-
tary liquidation ; T. Frederick Aspden became Vice-President of
the Park-Union Foreign Banking Corporation. Others notable
in this connection included the following :
Name Position in 1921 Bank Place
R. E. Jones Vice-President Bank of Manhattan Co New York
J. F. Fulton Executive National City Bank New York
E. J. Schilling. Exchange Manager Lincoln Trust Co New York
J. B. Forgan Chairman First National Bank. Chicago
D. R. Forgan President National City Bank Chicago
Alex. Robertson Vice-President Continental and Commercial National
Bank Chicago
J. M. McCurragh Vice-President Continental and Commercial National
Bank Chicago
H. G. P. Deans Vice-President Merchants Loan and Trust Co Chicago
John H. Reid Assistant Manager
Bond Department.... Central Trust Co Chicago
J. G. Geddes Vice-President First National Bank Cleveland
R. B. Small Assistant Secretary Union Trust Co Cleveland
F. W. Heathcote Chief Accountant Bank of Italy San Francisco
F. C. Clayton Manager. Asia Banking Corporation Manilla
J. Ballantyne President Merchants National Bank Detroit
O. T. Jaffray President First National Bank Minneapolis
Of course, under American conditions, probably all of these
officials were, in 1921, United States citizens, but they illustrate
the point made above. In Cuba Canadian banks at this period
were very strong and in 1921 shared with New York institutions
some of the difficulties of the local situation and the sugar de-
flation of the previous year. It was stated in June that the New
York Banks had approximately $40,000,000 tied up in Cuban
sugar; Canadian Banks were said to have been more fortunate
in their policy. R. S. Young, Superintendent of Cuban Railways,
was in Montreal on July 21 and told the press that Canadian
banking institutions had become the most powerful in Cuba and
practically controlled financing in that country. This was due
to the careful policy of the officials during a time when local
millionaires were being made over-night. American banks, he
said, lent money indiscriminately, but those of Canada, having
experience in business and land booms, in Western Canada, re-
fused to be stampeded by phenomenal sugar prices, lent money
on only adequate security, and were now in a very strong posi-
ti.OIV» "Canada wil1 benefit enormously and capture the pick of
the Cuban trade." Sir Herbert Holt, President of the Royal Bank
of Canada which, at this time, had 47 branches in Cuba and, al-
together, 103 branches outside of Canada, stated at the annual
meeting in Montreal on Jan. 13 that:
- T^anffi t0 ^e Precautions taken by our management in early warn-
ir omcers in Cuba of the inevitable reaction that would follow the
eiy nigh prices and instructing them to adhere to our policy of
o advances for speculative purposes, I am pleased to tell you
o c
•70
^ ^
O rvj
ffi S
§5
W r-
&.S
3'l
a a
THE BANKS AND THE FARMERS; BANKING INTERESTS ABROAD 49
that we have made no loss, and do not anticipate making any loss, as the
result of the present financial disturbances; in any case, full provision
has been made for unforeseen contingencies. We are conducting busi-
ness as usual, not taking advantage of the moratorium, being satisfied,
after an experience of over 20 years, that there is no safer banking field
than Cuba.
E. L. Pease, Vice-President of the Bank, added on this occa-
sion, as to the 10 branches of the Royal in South America and its
many others elsewhere, that : "Our branches in South America
are making steady progress, and we are well pleased with the
outcome of our first year's operations there. We are moving
slowly, taking no undue risks. It must not be supposed that a
Bank's interests in a foreign country are necessarily jeopardized
in consequence of weak exchanges ; without exception, the
operation of our Foreign branches has been satisfactory." The
Foreign Trade Department of this Bank, during the year, placed
many Canadian firms in touch with West Indian trade through
its 15 branches in the British West Indies ; it published a volume
sketching and describing banking operations arising from "Fi-
nancing Foreign Trade" ; its Paris and Barcelona branches pros-
pered excepting for the heavy Spanish taxes in the latter case.
The Union Bank of Canada adopted and further developed during
this year the policy of appointing an Advisory Committee at each
of its chief Foreign branches ; in New York the members were
Stuyvesant Fish and Gilbert G. Thorne, both outstanding men in
Banking circles. The Bank of Montreal opened branches in
West Africa.
Meanwhile, the Canadian banks represented in London had
joined those of other Dominions and parts of the Empire and of
some Foreign countries, as well, in the British Overseas Banks'
Association, which, in 1921, comprised 37 member Banks whose
business was mainly Overseas and who had their chief office or
a branch office in London. These member banks had among
them 6,357 branches situated in every part of the world with a
paid-up capital of £70,660,000 sterling and total assets of £1,567,-
000,000. Their business included not only the financing of local
requirements throughout the Overseas Dominions and other
places where they operated, but also, in a great measure, financ-
ing of shipments throughout every part of the world. Charles
Cambie, London Manager for the Canadian Bank of Commerce,
was Chairman, and at the close of the year presided at an im-
posing banquet of bankers which was addressed by Rt. Hon.
Winston Churchill, Secretary for the Colonies. Mr. Cambie was,
also, the Canadian member of the Committee of the British
Bankers' Association.
The old question of issuing call loans in New York and else-
where, as a sort of liquid security and, at the same time, as a
profitable use of money, came up during the year in various
forms. The total of call and short loans elsewhere than in
50 THE CANADIAN ANNUAL REVIEW
Canada on Dec. 31, 1920, was $211,442,652; on Dec. 31, 1921, the
total was $169,859,037. The chief Banks concerned at the later
date were the Bank of Montreal, $95,384,207 ; the Bank of Nova
Scotia, $11,731,284; the Canadian Bank of Commerce, $22,165,-
250; and the Royal Bank of Canada, $25,043,791. It was, and is,
obvious that money lent at not more than a 30-days term on high
class and fluid securities in New York or Chicago would be more
easily available in a Canadian crisis than if lent on longer terms
and heavier securities to industries and other interests in Canada.
If, however, the crisis came in New York at the same time as in
Canada— as it did on Aug. 4, 1914 — the situation might wear an-
other aspect.
The latest available statistics* as to Canada's
Trust and Trust, Loan and Mortgage Corporations are those
Loan Com- of 1920, when 49 Companies had invested in Mort-
panies; gages to a total of $178,522,397 with other Loans of
Intent.* of $7,409,452; they held other securities of $39,432,405,
Canada. real estate and premises worth $11,260,569, cash
$10,472,341, with total Assets of $258,894,960.
The largest concerns included were the Canadian Permanent,
the Credit Foncier, the Huron and Erie Loan, the Montreal Trust
and Loan, the Investors' Mortgage Securities. The Liabilities
of the Loan Companies in Saving Deposits totalled $30,786,015,
and on Debentures $113,196,718; the capital stock was $68,886,-
056, the Reserve funds $36,503,412 and other liabilities to share-
holders $8,920,704. The Investments of the Trust Companies
were as follows : on capital account $46,092,845 ; on guaranteed
accounts $41,765,186; the Estates Trusts were $571,099,895. The
total was $667,915,411 with the Royal Trust Co., the Toronto
General Trusts, the Trusts and Guarantee of Toronto, the Union
Trust Co., and the National Trust, as the leaders.
The Loan Companies had a good year in 1921 apart from the
continued difficulty of raising money by the sale of Debentures ;
so with Trust Companies. Mortgage rates continued high as in
1920 and ranged from 6l/2 per cent, to 7y2 per cent, for good
city property with Sy2 and 9 per cent, for Western mortgages.
In connection with Trust and Loan companies, important
changes were made in the Ontario law. The new Act required
that depositors' moneys should not be mixed with other moneys,
but be kept separate from all other funds received by the Com-
pany; that depositors' moneys should not be invested in other
than Trustee securities as authorized by the law of the Province
of Ontario ; that the investments made with depositors' moneys
should be ear-marked on the Company's books as belonging to
them and in such a manner that there should always be ear-
marked investments equal in amount to the total deposits ; that
•Note.— Writing in February, 1922.
TRUST AND LOAN COMPANIES; CANADIAN MORTGAGE INTERESTS 51
deposits should be guaranteed by the Company. Better inspec-
tion was assured and quarterly returns from Trust Companies
made compulsory.
Prior to its passage in May, George H. Smith, Assistant
General Manager of the Canada Permanent Mortgage Corpora-
tion, told the Toronto Globe on Jan. 24 that there should be no
widening of powers by Trust Companies to receive deposits as
British investors, upon whom the Companies largely depended,
regarded deposits as a preferred claim and as endangering their
own debenture securities : "Under the existing restrictions, the
Ontario Loan Companies have unused powers to take deposits
to the amount of more than $20,000,000 or, in other words, after
all these many years of effort they have not obtained deposits of
much more than half the amount already authorized. If some of
the larger Companies operating under the Dominion Act pos-
sessed the powers authorized by Ontario the amount of addi-
tional deposits which might yet be received by the Companies
would be increased to over $31,000,000." Mr. Smith took excep-
tion, under existing conditions, to the $40,000,000 invested by
Companies in negotiable securities ; some, at least, of this
should, he thought, be made available for Mortgage investment.
Incidents of the year included the incorporation of the On-
tario Equitable Trust Corporation with an authorized capital of
$2,000,000, a considerable preliminary stock subscription and A.
j. Prest as General Manager with headquarters at Waterloo ; the
final chapter in the long liquidation of the Dominion Trust Co.,
Vancouver, was written in the discharge of the official liquidator,
J. Crowther Gwynn, with total collections of $1,673,000 and dis-
bursements of $1,561,000; the celebration by the Toronto
General Trusts Corporation of its 40th year of successful oper-
ation under the management of (1), the late J. W. Langmuir,
and (2), A. D. Langmuir, the present General Manager.
During the year the Canada Permanent absorbed the London
and Canadian Loan and Agency Co. — a well-known corporation
dating from 1863 with total Assets (Dec. 31, 1920) of $5,067,253
and Liabilities to the public of $2,778,087. The President of the
combined corporation was W. G. Gooderham, the Vice-President
R. S. Hudson who, with John Massey, was Joint General Man-
ager. At the annual meeting of the National Trust Co. in Toronto
on Feb. 2nd, Sir Joseph Flavelle, President, spoke of prices and
reconstruction ; W. E. Rundle, General Manager, declared that it
had been estimated that it would require from 15 to 20 million
dollars of Mortgage Loan money to assist in providing dwellings
necessary to properly house the population of the City of Toronto
alone. Farmers, he stated, required money yet, at the same time,
it was being withdrawn from this form of investment by
Britain and European countries : "Some solution of the Mort-
gage Loan situation must be forthcoming. I submit that the
52 THE CANADIAN ANNUAL REVIEW
practical solution of the difficulty should come largely through
the Companies obtaining a larger share of the liquid funds which
are available in Canada itself/'
How this was to be done was not indicated, though the move-
ment in favour of increasing deposits and the powers to receive
them was one method and appears to have been favoured by this
Company. As a matter of fact, deposits in 8 leading Loan
Companies increased $1,300,000 in 1920 over the previous year.
The means available were, also, being added to by Insurance
Companies which, during 1920, put $103,895,691 into Mortgage
Loans as compared with $91,325,101 in 1919. The Dominion
Mortgage and Investments Association and the Ontario Land
Mortgage Companies Association went on record as favouring
the securing of larger borrowing powers as means of adding to
their available capital for loans.
Meanwhile, in the West, these Companies were faced by
very considerable competition from the Rural Credits' scheme
and its support by Provincial Governments ; it was contended
that this and similar plans, such as the Land Bank system in the
United States, discriminated unfairly against the Loan and Trust
Companies and the capital invested in and through them. The
Canada Mortgage Loan Association met at Winnipeg in Con-
vention on May 12, with W. E. Long, Toronto, in the chair and
100 delegates present. During his speech Mr. Long declared
that new conditions would necessitate adjustment of the Mort-
gage machinery in Canada : "In giving essential public service,
by prudently exercising their functions as lenders on mortgage
security, the organizations concerned would be greatly aided if
it could be stated, particularly in Western Provinces, that there
was no legislation of a discriminatory or restrictive character.
A mortgage lender, making a contract in conformity with ex-
isting statutes, frequently found that during its currency new
legislation had been passed, which resulted detrimentally to the
lender. To those engaged in obtaining funds for investment in
mortgage securities it had been found that one of the great
obstacles to their doing so was uncertainty as to what might
be done by legislators."
In the report of the Municipal Finance Committee, refer-
ence was made to default in payments by cities and towns in
Alberta and Saskatchewan, while in Manitoba, Ontario and
Quebec the Provincial Departments had intervened and avert-
ed loss to debenture holders. W. D. Glendenning, in an address
on the Manitoba Farm Loans, claimed that during the 3^ years
of operation the Province had shouldered costs amounting to
$250,000. A Resolution was passed urging the Dominion Gov-
ernment to cease giving priority to liens or advances for seed
grain and R. B. Bennett, K.C., suggested an amendment to the
Canadian constitution which would make it impossible for any
THE INSURANCE INTERESTS OF CANADA IN 1921
53
Legislature to pass any law impairing the obligation and sanc-
tity of contracts ; Mr. Long was elected President.
Financial Appointments of the Year.
.Director.
Imperial Trusts Co Director
Imperial Trusts Co Director
Imperial Trusts Co Director
Commercial Finance
Corporation
Commercial Finance
Corporation
Trusts & Guarantee Co. Director.
London and Canada Loan
and Agency Co Managing Director...
Royal Trust Co Director.
Union Trusts Co Director.
Union Trust Co Director.
Crown Trust Co Director
Home Investment and
Savings Association Vice-President
Home Investment and
Savings Association Director.
National Trust Co
National Trust Co
National Trust Co
National Trust Co
National Trust Co
National Trust Co
National Trust Co
National Trust Co
.W. H. Thorburn
.Hon. Geo. Lynch-Staunton
.A. W. Marquis
Toronto
Hamilton
St. Catharines
Director. A. S. Wigmore Toronto
..Thomas Leeming Toronto
..Lieut-.Col. Ernest Wigle, K.C Windsor
..W. C. Noxon Toronto
Sir A. M. Nanton. Winnipeg
S. R. Parsons. Toronto
..J. B. Laidlaw. Toronto
..Sir Mortimer Davis Montreal
...W. H. Cross Toronto
..G. W. Allan, K.C Winnipeg
.Ed. Fitzgerald Winnipeg
..Sir Douglas Cameron Winnipeg
..A. McT. Campbell Winnipeg
..Kenneth MacKenzie. Winnipeg
..G. W. Allan, K.C Winnipeg
..Leighton McCarthy, K.C Toronto
..Carl Riordon Montreal
..Herbert C. Cox Toronto
Director.
Director.
Director
Director.
.Director.
Director.
Director.
Vice-President
and
Chartered Trust
Executor Co
Canada Landed and
National Investment
Company President
Canada Landed and
National Investment
Company Vice-President
Toronto General Trusts
Corporation. Director
Toronto General Trusts
Corporation Director.
Toronto General Trusts
Corporation Director.
Director Lieut.-Col. D. H. McLaren Barrie
.D. E. Thomson, K.C Toronto
..F. W. Harcourt, K.C Toronto
..W. L. Matthews Toronto
...A. D. Langmuir. Toronto
...C. S. Blackwell Toronto
Insurance
Interests of
Canada:
Life, Fire
Fraternal
and Other
Companies.
Insurance conditions had, by 1921, become a
vital matter to all Canadians ; their prosperity and
financial well-being turned in an increasing degree
upon this great business and personal interest. Ac-
cording to J. H. Castle Graham, General Secretary
of the Canadian Underwriters' Association (Mont-
real address, Oct. 7) the 2y2 billions for which the
people of Canada were insured would provide for
350,000 widows and orphans for 20 years; it would purchase
625,000 homes at $4,000 each, or it would furnish an education to
over a million children. Over six hundred million dollars, he
added, had been paid out by the Life insurance companies in
Canada, of which two hundred millions had been paid to living
policy-holders in the past 10 years and this was actually twenty-
five millions more than was paid in death losses — despite the
heavy war and influenza claims.
Mr. Graham also stated that over 1,000 persons every day
took out policies, and that the total yearly amount would pro-
vide an income of 100 dollars a month for 15 years to 50,000
families. He expressed the opinion that 79 per cent, of all busi-
54
THE CANADIAN ANNUAL REVIEW
ness failures in Canada in the past year were due to personal
causes which Life insurance would have obviated or met because
Life insurance established credit, furnished ready cash to pay
off indebtedness, safe-guarded a deceased partner's share in
business and created an asset of fixed value which could not
shrink. Referring to the investments of Insurance companies, it
was stated that the premiums received formed a Trust fund,
which amounted to $700,000,000 and were invested in Govern-
ment securities, transportation, industrial and other enterprises
of Canada. As to the farmers of the country, the Insurance com-
panies had placed 25 to 40 per cent, of their entire assets in mort-
gage loans; never in the history of insurance in Canada had a
policy-holder lost a dollar through the failure of any Life Insur-
ance company. It may be added that the total figures of Life
Insurance in Canada for the year ending Dec. 31, 1920, were as
follows :
Companies
Canadian Companies _
British Companies
Foreign Countries
Total
Net Increase Lapse*
Amount 1920 over During
in Force 1919 Year
$1,664,358,605 $301,717,043 $116,775,903
76,883,090 9,975,026 5.694061
915,793,798 157,496,107 85,378,884
$2,657,035,493 $469,188,176 $207,848,848
Companies
Canadian Companies
British Companies
Foreign Companies.
Total.....
New Policies
(Life)
$399,826,995
14,814,025
146,500,166
New Policies
(Industrial)
$11,857,232
2,105,710
56,975,467
$561,141,186 $70,938,409
Premiums
Income
$57,205,082
2,776,099
30,236,866
$90,218,047
If these totals had included the figures of Provincially-
licensed Companies, the Net Insurance in force would be $3,034,-
524,013, the new policies issued (gross) $729,014,986, the Net
Premiums received $97,443,784, the claims paid $32,153,055. The
number of policies exposed, technically, to the risk of termina-
tion by death in 1920 was 3,601,463; the number actually termi-
nated was 29,575. The Income of Canadian Life Insurance
Companies in 1920 was $104,639,853, and their disbursements
$64 698,790. Out of every $100 income there was expended in
disbursements, in respect of assurance and annuity contracts,
yw-55; in general expenses $23.50; in taxes $1.24; and in divi-
dends to share-holders $0.91 ; otherwise, $0.82; leaving $38.18 to
be carried to reserve. The disbursements as to Assurance and
Annuity contracts, including death claims, matured endowments,
surrender values, dividends, etc., totalled $53,438,056. The total
investment m Mortgage Loans, at the beginning of 1921, of all
Ute Companies was $125,766,968; the total of Policy Loans out-
standing was $63,930,216; the Assets in Canada of British Life
Companies operating in Canada were $37,521,001 and of Ameri-
can Companies $129,072,888; the total Assets of Canadian Life
Companies were $420,018,399. The total Funds of the latter on
ec. si, iyzuf including participating and non-participating
THE INSURANCE INTERESTS OF CANADA IN 1921 55
shareholders' surplus, paid-up capital and contingent or special
reserves was $404,533,968. The amount of bonds, debentures and
stocks held by Canadian, American and British Companies in
Canada on Dec. 31, 1920, was $346,831,320.
These great interests in Canada had developed in the main
since 1847 when the Canada Life was founded by Hugh C. Baker
of Hamilton;* between 1869 and 1919 Life insurance held by
Canadian companies grew from 15 to 62 per cent, of the whole
and decreased by American companies from 39 to 35 per cent,
and by British from 46 to 3 per cent. It may be added that, at
this time and since 1875 in Canada, there was a Dominion Gov-
ernment Department for the supervision and regulation of As-
surance throughout the country and a central Federal Superin-
tendent ; there was one Federal law, which regulated most of
the details of the business ; the Provinces had jurisdiction over
local companies without a Dominion license, and over certain
agency and other operations of the Dominion companies which
were local in character. New provisions in the 1917 Act arrang-
ed that a Policy should be deemed the whole contract ; the Agent
of a Company was not to be an agent of the insured; no esti-
mate, illustration or statement of the dividends or shares of sur-
plus expected was to be made or issued ; rebates, discrimination,
etc., were forbidden; quinquennial distribution of surplus and
profits was to be made ; form of Policy was to be approved and
the Policy to be incontestible after two years except for fraud
or non-payment of premium.
During 1921 the financial depression caused much attention
to be given Life insurance as an element of resource in busi-
ness. R. H. Myers, Probate Judge, Winnipeg, in an elaborate
study of the subject, pointed out that there were 3,000,000 Cana-
dian policy-holders and declared that : "Life insurance has out-
grown its original purpose of family protection alone and has
now become a most reliable resource upon which business may
lean in time of emergency. We are advised that in the United
States 85 per cent, of the assets of estates probated consists of
Life insurance, whereas in Canada the percentage is less than
40." C. W. Rowley, of the Canadian Bank of Commerce, was
even more explicit in addressing the Life Insurance Institute of
Winnipeg: "In my opinion the importance of Life insurance as
a support to banking credit is somewhat overlooked. While it
may not add much to a customer's financial responsibility the
placing of adequate insurance shows forethought, thrift and
conservatism." The frequent dependence of business upon the
life-risk of one man was pointed out and the importance of
Business Insurance described: "Earning ability has a value
worthy of being treated as actual property of the concern and
*Note. — Aa address by T. B. Macaulay, P.I.A., P.A.S., F.s.s., published in Canadian Finance
Winnipeg, (June 15th, 1921), gave an elaborate history of Canadian Life Insurance.
56 THE CANADIAN ANNUAL REVIEW
protected by insurance just as carefully as is any other of the
Company's resources."
As to this and general conditions during the year Herbert
C. Cox, President of the Canada Life, stated in his annual ad-
dress covering 1921 that: "It is no surprise that the altogether
unusual amount of Life assurance sold on this continent in 1920
should not have been equalled in the last 12 months — the wonder
is rather that the shrinkage in volume is only 15 per cent, and in
Great Britain about 20 per cent. This is only another indication
of the appeal life assurance makes to the public under any and
all circumstances. It is one of the great silent stabilizing factors
in business and in the home. There has been in evidence in the
United States for some considerable time a tendency upon the
part of bankers to ask for Life assurance as collateral security
in cases where the personal equation enters largely into the
granting of credits." The turn of the tide from the phenomenal
expansion of 1918-19-20 came in 1921 — though some Canadian
Companies actually increased their business. The estimate of
G. D. Finlayson, Dominion Superintendent of Insurance, as to
new business in 1921 was $594,000,000 gross or $535,000,000 paid
for in cash; an estimate by G. Cecil Moore, Assistant General
Manager of the Imperial Life, was $510,000,000 for new busi-
ness; the total in 1920 had been $641,000,000. The mortality
was said to be even more favourable in 1921 than in 1920. Policy
Loans in January- June, 1921, were $10,661,222 compared with
$6,962,033 in the same months of 1920. Practically all the Com-
panies were said to have increased their financial strength. As
finally published in 1922 the new Life business of the year was
$514,000,000 or a decline of 18% — due in part to a lessened de-
mand for Group insurance for industrial purposes. The new
general business compared most favourably with the $313,000,-
000 of 1918.
Incidents of the year included the repeal of a provision in
the U. S. Revenue Act which affected Canada by imposing a tax
upon Insurance paid by United States Life Companies even in
cases where the holder was a non-resident ; a movement towards
uniformity of beneficiary laws throughout the various Provinces
which was taken up by the Canadian Bar Association ; the ab-
sence of any new licenses granted for Life Insurance business
during the year and the non-incorporation of any new Life in-
surance companies by Parliament; the statement of V. Evan
Gray, Ontario Superintendent of Insurance (Louisville, Sept.
27), that out of 260 Insurance companies registered in Canada
for Dominion business 114 had their head offices in the United
States ; the fact that Life Insurance— excluding Fraternal busi-
ness—increased to $3,000,000,000 of a net amount in force or
double the total of five years before.
New points of view were constantly cropping up as to In-
surance—one was that the Farmer, in particular, should carry a
THE INSURANCE INTERESTS OF CANADA IN 1921 57
policy large enough to cover any mortgage indebtedness against
his land ; an arrangement was made by the United Grain Grow-
ers' Securities Co., Ltd., of Winnipeg, with the Sun Life Assur-
ance Co., for a Grain Growers' series of Policies including
Straight Life, Limited payment and Endowment ; the growth of
Endowment insurance was described as doubling in amount be-
tween 1910 and 1919 or from $227,344,790 to $488,813,886; at-
tention was drawn to the Canadian Government's Life insurance
scheme for returned soldiers, to the appointment in January of
Major C. B. Topp, D.S.O.,M.C., as Director, to the poor preliminary
response made to the proposals and to the fact that by September
over 5,000 held policies to a total of $13,500,000; the Canadian
Manufacturers' Association and a strong delegation of business
men from Montreal, Toronto and other points, united in protest-
ing against the Ottawa Government's proposal to tax premiums
paid to unlicensed companies ; a proposal had its initiative in
Chicago which urged the provision of Insurance for meeting
Succession duties and avoiding the sacrifice of securities which
often resulted from this demand on estates.
It may be added that Industrial insurance had a total new
business in 1920 of $70,938,409 and in 1921 was very actively
pressed in Canada by the Metropolitan, New York, Prudential,
Travellers and ^tna Companies of the United States — with the
Equitable withdrawing from the field ; Randall Davidson retired
from the management in Canada of the North British and Mer-
cantile Insurance after 19 years' control. Some of the large
totals of Canadian insurance which became death claims in 1920
were as follows: G. W, Farrell, Montreal, $226,000; Elias Rogers,
Toronto, $63,000; Z. A. Lash, K.C., Toronto, $37,000; W. Graham
Browne, Montreal, $57,000; E. R. Levison, Winnipeg, $50,000;
J. T. Hammill, Ottawa, $57,000; J. E. Julien, Quebec, $81,000.
Group Insurance in Canada. The question of Group Insur-
ance continued to be much discussed, though for the moment it
decreased in actual amount. So far as Canada was concern-
ed it was initiated in November, 1919 ; it had been tried in Great
Britain for many years and, latterly, in the United States, where
it had expanded rapidly during the first two years. The Cana-
dian policies in 1919 were $10,749,850 issued by American Com-
panies and $47,940,258 in 1920; those issued by Canadian Com-
panies were $761,400 in 1919 and $28,985,228 in 1920. The total
increase from 11 to 76 millions in a year was an evidence of
growing popularity; enthusiastic advocates proclaimed it the
solution of many business problems and the assured prosperity
of the industrial world; pessimistic detractors declared it a
dangerous policy, the money as thrown away, the time better
spent on some real solution of Labour problems ; many Insur-
ance experts during 1921 still considered the whole scheme as
on its trial so far as any large addition to Insurance benefits was
58 THE CANADIAN ANNUAL REVIEW
concerned. It lacked exact definition — either in a business or
legal sense — and this is always an obstacle to full success. A
statement accepted by W. J. Graham, 3rd Vice-President of the
Equitable Life and given by him to the Life Underwriters' As-
sociation, Toronto, was as follows :
Group Insurance is that form of Life insurance covering not less
than 50 employees with or without medical examination, written under
a policy issued to the employer, the premium on which is to be paid by
the employer or by the employer and employees jointly, and insuring
only his employees, or all of any class or classes thereof determined by
conditions pertaining to the employment, for amounts of insurance
based upon some plan which will preclude individual selection for the
benefit of persons other than the employer, provided, however, that when
the premium is to be paid by the employer and employees jointly and
the benefits of the policy are offered to all eligible employees not less
than 75 per cent, of such employees may be so insured.
At this time it was issued almost exclusively upon the year-
ly-renewable-term plan and the average cost per $1,000 had
worked out at about $8.00 per man per year. In Canada the
active Companies in the first two years of operation were the
Canada Life, the Sun Life and the Great West Life, with four
United States concerns — the JEtna, the Travellers, the Metro-
politan and the Prudential. The larger employing firms who
went into the system in 1920 seemed satisfied. J. Westren, Gen-
eral Manager of the Dunlop Tire and Rubber Goods, Ltd., told
the Financial Post of Toronto (Apr. 15, 1921) that: " We believe
Group insurance is a good thing — good alike for employee and
employer — and we have just renewed the policy for 1921." C. O.
Stillman, President Imperial Oil Co., declared that : "If we had
no Group insurance at the present time we would inaugurate
such a department at once. Our motive was the welfare of our
employees and an ordinary act of business policy, which had for
its object the reduction of the large losses to industry due to re-
placements, in a word, with the hope to lessen the turnover of
labour." C. S. Coryell, President Adams Furniture Co., Toronto,
W. R. Breyfogle of the De Laval Co., Peterborough, C. H. L.
Jones, General Manager Spanish River Pulp and Paper Mills,
and others expressed similar views. The Financial Times of
Montreal (May 14, 1921) gave the following reasons in favour
of the scheme :
1. It is an investment that develops teamwork and gives a definite
and continuous return for an outlay in premiums that is usually less
than 1 per cent, of the pay roll.
2. It rewards efficiency and faithful service by providing increasing
amounts of Insurance based on the length of time employed or the
amount of salaries or wages earned.
i 3'j It:tre(iuces the cost of "turn over" by stabilizing the labour em-
ployed whether in office or factory.
4. It protects the families of the employees and transfers to the In-
surance company the responsibility of providing for the widow and
children.
THE INSURANCE INTERESTS OF CANADA IN 1921 59
5. It promotes good-will by linking the home and the dependents of
the employee more closely to his work and to his employer.
6. It provides a form of welfare work that should come first — that
is the safeguarding by Insurance of the homes of the workers who be-
long to an organization.
7. The employee secures the Insurance protection free of the medi-
cal examination which many might not be able to pass.
The disadvantages of the plan were stated by Canadian
Finance, Winnipeg (Oct. 19) as follows: "(I) That insofar as
fraud is concerned medical examination is extremely valuable, if
not indispensable, and if waived entirely fraud will increase both
in respect to large and small amounts ; (2) the medical examiner
alone is able to detect the presence of a large class of ailments
affecting longevity; (3) while from the standpoint of moral
hazard it is safer to restrict 'non-medical' business to smaller
amounts, as regards physical impairments, the medical examina-
tion is as important for small as large amounts." These were
the chief objections and British experience did not prove them
impossible to overcome. According to E. E. Reid, before the
Victoria, B.C., meeting of Underwriters, the initial proposition
introduced in Great Britain in 1890 contemplated the issuance of
a non-medical policy on the ordinary whole life with profits plan,
but during the first five years no insurance would be carried
other than the return of premiums to be paid in the event of
death. At the end of five years the policy ipso facto became a
with-profit endowment insurance, payable at the end of 15 years
or at previous death, and the corresponding endowment prem-
ium, at the attained age, became chargeable. There had been
various modifications but the general plan was still operative.
The Canada Life Assurance Co. worked out, in 1921, a
scheme of "wholesale" insurance, a modification of the Group
plan. It could be applied to a group of workmen numbering
from 10 to 49 while the ordinary Group policy applied only upon
a minimum of 50. The Insurance Company under this plan re-
served the right to ask for evidence of health, whereas under the
original plan the coverage applied to a body of workmen or em-
ployees without requiring any medical examination whatever.
Another adaptation known as "Association" insurance could be
applied to members of trade unions or lodges. Here, as in whole-
sale insurance, the Company could require some evidence of
health, and an age limit of 60 years was placed beyond which the
cheaper form of policy would not apply. The Company dealt
directly with the lodge or union, which made an assessment for
insurance upon its members. In other directions the general
principle developed. The Cities of Westmount and Calgary had
their employees insured under the Group plan and the Provinces
of Manitoba and Quebec decided to secure similar insurance for
their employees.
Insurance Meetings of 1921. Only a passing reference can
be made to the Insurance meetings of the year. The Life Under-
60 THE CANADIAN ANNUAL REVIEW
writers' Association of Canada held its annual Convention at
Victoria on Aug. 17 with 400 delegates present and O. B. Shortly
of Toronto in the chair. The purpose of the organization was
described as the attainment of better conditions in the Insurance
business; it sought for sane legislation regarding Insurance
matters, greater efficiency on the part of underwriters, and the
maximum degree of protection for the public; its membership
comprised active salesmen and field men while most of the dele-
gates were said to be branch Managers. Prominent Insurance
men present were C. C. Ferguson and J W. W. Stewart, Winni-
peg; E. E. Reid, London; Thomas Hilliard, Waterloo, Ont., and
Orville Thorp, President, National Life Underwriters of the
United States. The latter dealt at length with the problem of
Succession duties and estate tolls after death, the need for im-
mediate cash to save property and fortune for heirs: "In my
belief the solution is the purchase of Life insurance. That is an
asset that can be created without difficulty, from interest earn-
ings, by the man while living. It will provide ready cash to pay
succession duties at death and at the same time leave the orig-
inal fortune intact/' The Hon. J. W. de B. Farris, Provincial
Attorney-General, stated that a Provincial Insurance Act was
under preparation by which all Insurance salesmen must be
taxed ; he declared that Insurance conserved public health, help-
ed to provide capital and credit in the national centres, developed
individual thrift, protected the family. A number of other speak-
ers followed including M. A. Macdonald, K.C., M.L.A. Mr. Shortly
was elected Hon. President; J. G. Stephenson of the London
Life, Winnipeg, President ; J. B. Hall, Toronto, Hon. Secretary ;
J. H. Castle Graham, Toronto, was re-appointed Secretary-
Treasurer. Montreal was awarded the Reid Cup for member-
ship increase and, also, the Burtt Morgan Prize for percentage
increase during five years.
At the annual meeting of the Insurance Federation of British
Columbia on June 10, A. E. Goodman, the retiring Secretary,
observed that every State in the American Union had a similar
organization to fight adverse legislation, and that it appeared
that in the United States there were many demands for
Government insurance — a movement very likely to arise in
Canada and which it was necessary for Insurance men to fight.
William Thompson was elected President and vigorous opposi-
tion to State Health Insurance expressed. The Saskatchewan
Life Underwriters held their 1st Convention at Saskatoon on
Mch. 15-16, and by unanimous vote declared that Life insurance
should be lifted out of all other classes of insurance and be placed
on a plane by itself with its own special certificate of authority,
issued by Provincial Insurance departments, and that qualifica-
tions for agents should be left to the Companies to pass upon.
Addresses were given by A. E. Fisher, Provincial Superintendent
of Insurance, and J. W. W. Stewart of Winnipeg. M. B. Farr of
THE INSURANCE INTERESTS OF CANADA IN 1921 61
Regina was elected President and F. W. Graham, Moose Jaw,
and R. M. Currie, Saskatoon, Vice-Presidents.
The 4th annual Conference of Provincial Insurance Superin-
tendents of Canada was held at Quebec on Oct. 6. Nearly all
the Provincial Governments were represented by their Insurance
Superintendents or other officials ; while Companies and Under-
writers' Associations had representatives present and several
officials from the head offices of American companies doing busi-
ness in Canada were in attendance. The report on Dominion
Legislation, presented by A. E. Fisher, President of the Associa-
tion, criticized "the continued attempt of the Superintendent of
Insurance at Ottawa to introduce the control of agents by his
Department despite the fact that protests had been received from
the Provinces and from practically all Insurance interests." It
was claimed by Mr. Fisher that existing laws, especially as to
Fire insurance, were very hard on Provincial companies.
H. J. Sims, K.C., of Waterloo, Ont., gave an important address
as to uniformity of legislation and the Model Act re Life and
Fire Insurance which he had prepared at the request of the On-
tario Insurance Superintendent and the Canadian Life Officers'
Association. He made this statement: "There is no doubt that
the Parliament of the Dominion has the right to incorporate In-
surance companies and to regulate them after they are formed.
The Provinces have a similar right as well. However, once a
Dominion-formed Company does business in any particular
Province it at once submits itself to the laws of that particular
Province as to its Insurance contracts." He declared that uni-
formity in Provincial laws was better than Federal centraliza-
tion. A Resolution was unanimously passed opposing Federal
interference with licensed Agents.
The Conference also urged Provincial Governments "to pro-
vide that the provisions of the law relating to deposits by Insur-
ance Companies as a condition precedent to the issue of a license,
should not apply to an insurer having on deposit with the Gov-
ernment of any Province of Canada, a sum not less than $50,000
which, in relation to its whole Canadian business, is not less in
amount than that required by the provisions of the law in rela-
tion to the business of the insurer within the Province." It ap-
proved a Form of Automobile Insurance conditions and endorsed
a proposed Model Fire Insurance Policy Act involving uniform
legislation for and by the Provinces ; advised co-operation be-
tween Provincial Superintendents and inspection of the affairs
of Companies not incorporated in a Province but incorporated in
another Province ; urged a uniform law in Western Canada re-
specting Mutual Fire Insurance Companies and the standardiza-
tion of inter-Provincial Legal Reserve requirements for Insur-
ance Companies ; advocated the establishment of a Central Hail
Adjustment Bureau in the Western Provinces and urged intro-
62 THE CANADIAN ANNUAL REVIEW
duction in Provincial Legislatures of Bills providing for Standard
Uniform Statutory Conditions in respect of Accident and Sick-
ness Insurance contracts and Automobile Insurance contracts —
these to stand for consideration until the ensuing Session.
Charles Heath of Manitoba was elected President, F. L. Monck
of Quebec Vice-President and V. Evan Gray of Ontario Secre-
tary-Treasurer.
The Annual Convention of the Canadian Underwriters' As-
sociation was held at Niagara Falls on June 27-28, with 70 mem-
bers in attendance ; John Jgnkins of Montreal was elected Presi-
dent, Alfred Wright, Toronto, Ontario, Vice-President, and W. T.
Baldwin, Montreal, Quebec, Vice-President.
Fraternal Insurance and Assessments. During this and the
previous year efforts were made by Canadian Governments to
supplement the work of some of the Fraternal organizations
and to bring all those operating in Canada within the regulations
of complete actuarial solvency. The Ontario Department of In-
surance, with the co-operation of the Canadian Fraternal Asso-
ciation, obtained legislation (1920) which required every Society
to employ a duly qualified actuary of its own choosing and the
filing with the Department of an annual valuation of the assets
and liabilities of the Society. It was also required to file an
actuarial declaration that its rates and assets on hand adequate-
ly provided for the payment at maturity of its contracts of In-
surance. If the Society's actuary was unable to file such a dec-
laration provision was made for a re-adjustment of the rates of
contribution, or a reduction in the amount of benefits so as to
provide with reasonable certainty for the payment of contracts
at maturity ; should the Society fail to carry out such re-adjust-
ment, a Committee of three persons would be appointed by the
Government with authority to investigate the position and sub-
mit recommendations which then would be automatically im-
posed upon the Society.
The Dominion Act also gave the Fraternal societies until
1925 to make a re-adjustment, and if the re-adjustment was not
made by that time the license was to be cut off and the Society
go into liquidation. Under amendments to this Act which came
into force on Jan. 1st, 1920, it became necessary for all foreign
Fraternal societies then transacting business in Canada under
Provincial licenses to obtain Dominion licenses in order to con-
tinue new Insurance in Canada. Of the 16 Societies then trans-
acting business ten received the necessary licenses as follows :
The Ladies' Catholic Benevolent Catholic Order of Foresters.
Association. The Workmen's Circle.
The Maccabees. The Knights of Columbus.
TJnval Amor Association Canado-Americaine.
Royal Arcanum The Western Mutual Life Associa-
Womens Benefit Association of tion.
the Maccabees. The Knights of Pythias.
THE INSURANCE INTERESTS OF CANADA IN 1921
63
At the beginning of 1921 the Fraternal record in Canada
showed, for the preceding year, $17,050,791 of new policies
(gross) issued under Provincial license with net premiums of
$3,736,822, net claims paid of $3,652,824 and net Insurance in
force of $202,758,305 ; under Dominion license the new Policies
issued (gross) were $3,836,800, the net premiums received were
$647,059 and the net claims paid $567,193, the net Insurance in
force was $57,107,001. Many facts as to these organizations
were discussed at the Convention of the Canadian Fraternal
Associations held at Montreal on May 13-14, with Aid. J. A. A.
Brodeur in the chair ; George P. Kirby, President of the National
Fraternal Conference of America, was present. The delegates
numbered 100 representing 22 Societies with a total membership
—chiefly in the United States and Canada— of 1,250,000, funds
of $130,000,000 and Insurance in force totalling $1,000,000,000.
It may be noted that the National Fraternal Congress of America
at Chicago an Aug. 29, received a Report showing 88 Societies
with a total membership of 4,801,148 at the beginning of 1921,
Insurance in force of $5,467,846,829 and Benefits of $64,301,459
paid out during 1920. The following official statistics shows the
business of Fraternal Societies in Canada for the year 1920 :
Name
Alliance Nationale
Ancient Order of Foresters
La Societe des Artisans
Canadiens-Krancais
Association Canado-Atnericaine
Catholic Mutual Benefit Associ-
ation of Canada
Total Assets
$4,718,617.93
1,771,412.22
5,262,484.85
31,562.04
899,373.03
16,759.62
194,790.01
44,254,969.01
16,736.77
32.864.44
37,062.17
11,019.44
215,031.89
95,481.28
678,651.99
77,050.00
25,249.10
1,143,982.82
23,407.01
Liabilities
$4.313,960.52
644,371.98
5,150,916.60
184,148.96
787,583.75
6,524,973.58
190,765.53
43,492,034.85
8,745.27
256,918.00
103,657.80
25,266.89
1,958,495.86
398,308.00
520,088.71
82,711.63
161,261.39
986,149.02
71,707.00
Income Disbursements
$926,457.18 $608,429.51
279,088.67 95,902.60
1,271,260.60 709,666.76
70,442.56 48,319.07
318,862.59 227,533.60
470,756.24 426,382.29
59,039.60 38,866.68
5,363,778.05 4,973,022.62
7,805.72 1,443.95
110,471.14 53,683.01
35,691.84 16,508.96
8,833.49 3,251.84
323,231.50 331,343.00
186,928.54 128,790.77
144,600.21 97,168.64
96,438.16 56,741.71
32,398.33 25,470.36
215,411.39 116,843.44
18,997.95 7,903.51
Catholic Order of Foresters
Commercial Travellers' Mutual
Benefit Society
Independent Order of Foresters
Jewish National Workers' Alli-
ance of America
Knights of Columbus.
Knights of Pythias
Ladies' Catholic Benevolent
The Maccabees
Royal Guardians
Western Mutual Life Association
Women's Benefit Association
of the Maccabees
Canadian Order of Woodmen
of the World
Workmen's Circle
$57,801,689.03 $65,217,693.36 $9,661,405.09 $7,871,359.72
The chief of these organizations was the I. O. F. Its busi-
ness was a growing one in membership with 8,217 initiated in
1918, 14,645 in 1919 and 16,165 in 1920; the Benefits paid, how-
ever, showed a reduction from $4,568,863 to $4,352,935 in 1919
and from $4,161,544 in 1920 to $3,784,796 in 1921. The Order in
1917 had to face serious losses through bad investments or rather
investments which war conditions had depreciated; in that and
the succeeding year the management marked down its pre-war
industrial and public utility securities to new values and its annual
balance sheets then were based upon the market value of securi-
64 THE CANADIAN ANNUAL REVIEW
ties. The policy of the Order was changed so that new invest-
ments were confined to Government and municipal securities and
first mortgages on improved real estate. In 1921 over $800,000
of government and municipal bonds were purchased. The gen-
eral meeting of this latter year reviewed the work of the prev-
ious four years, re-elected the management and re-affirmed the
investment policy laid down in 1917. The following officials
were elected — in the case of Mr. Hunter, to a second four-year
term:
Supreme Chief Ranger W. H. Hunter, B.A Toronto
Past Supreme Chief Ranger Victor Morin, B.A., U..B Montreal
Supreme Vice-Chief Ranger Frank E. Hand Los Angeles
Supreme Secretary. George E. Bailey Antwerp, N.Y.
*Supreme Physician Thomas Millman Toronto
Supreme Treasurer. G. R. Cottrelle Toronto
Chairman, Medical Board C. B. Dickson, M.D Los Angeles
At this annual Convention of the Order in Toronto (Aug.
24-25) — attended by delegates from 46 High Courts in Great
Britain and Ireland, the United States and Canada — the Supreme
Chief Ranger, W. H. Hunter, stated that Life Insurance was but
one of the ways adopted by the Order to carry out its objects,
which, chiefly, were to unite the members in a fraternity, and in
that fraternity to undertake such benevolent work and to give
such aid and benefits to its members as were marked out in the
constitution and laws. The Report of the Supreme Treasurer,
G. R. Cottrelle, showed receipts in the four years 1917-20, in-
clusive, as totalling $30,986,685; the Reserves were placed at
$41,967,175 and the Surplus of Assets over Liabilities at $652,000.
The Supreme Secretary reported on Dec. 31, 1920, 3,215 sub-
ordinate courts and 176,141 members with a continuous increase
during 1921 to date ; the Supreme Physician reported for 1917-20
51,400 applications for membership as accepted, with Insurance
amounting to $49,389,750, deaths totalling 9,729 and a death rate
of the Order in the past 28 years of 8 50 per 1,000 — for women,
alone, the death rate in 1920 was 835 per 1,000. During the 4-
year period 38,796 sick claims were approved, and $972,736 were
paid.
Provincial Chief Rangers of the I. O. F. in 1921.
Alberta D. McManus Edmonton
British Columbia. C. D. Gillanders Vancouver
Manitoba H. J. Johnston Winnipeg
New Brunswick Lieut.-Col. G. W. Mersereau Doaktown
Nova Scotia G. J. McNally, M.D Berwick
Central Ontario Colonel W. Wallace Toronto
Eastern Ontario R. S. Graham Kingston
New Ontario Dr. E. B. Oliver Fort William
Western Ontario E. O. Zimmerman Hamilton
Quebec (Comp.) Mrs. E. R. Gagnon Montreal
Quebec V. Martin, M.D Quebec
Quebec (Montreal) Henri Rochon Montreal
Quebec (South) J. O. Moreau St. John, Que.
Saskatchewan F. J. Vollmer. Moose Jaw
Another important body was the Canadian Order of Forest-
ers which, in 1921, claimed to have paid over $16,000,000, in its
*Note.— Dr. Millman died on Nov. 15 after holding his position for 38 years.
THE INSURANCE INTERESTS OF CANADA IN 1921 65
41 years of operation, to its members and dependents, and to have
had an average death rate of 605 per 1,000 since inception with
Funds totalling $6,000,000 invested in Canadian and British secu-
rities only. At the 42nd annual meeting of its High Court, Ni-
agara Falls, June 15-16, there were 300 delegates present and
J. A. A. Brodeur of Montreal was elected for the third time as
High Chief Ranger with A. P. Van Someren of Brantford as High
Secretary. Incidents of the year included validation by the On-
tario Legislature of the action taken by The Sons of England
Benefit Society in reducing the value of beneficiary certificates
of members who joined prior to Jan. 1, 1915, on the ground of
insufficiency of assessments paid by those members; the state-
ment at the Convention in Toronto of the Ancient Order of
United Workmen that there were 10,500 members of the Order
in Ontario, that its general situation had never been so satisfac-
tory with a reserve surplus at the end of 1920 of $1,504,827 —
R. G. Graham of Ottawa being elected Grand Master ; the Con-
vention of the Province of Quebec Order of Catholic Foresters
(Montreal, June 15) with E. J. Brossard re-elected as Grand
Master, and the financial Convention of the Ancient Order of
Foresters at Hamilton (Aug. 23) when 130 delegates were
present and the Canadian jubilee of the Order was celebated.
Fire Insurance Interests of Canada. The Fire loss in Canada
continued to grow in these years and to increase the Insurance
hazard. According to the Commission on Conservation statistics
there had been a total loss from Confederation to 1917 of $350,-
000,000 exclusive of Forest losses; an expenditure of $150,000,-
000 in maintaining Fire insurance and the payment of $197,000,-
000 for Fire insurance over and above the sums returned for
losses. During the four years 1912 to 1915 the average annual
Fire loss was $21,000,000; in 1916 it was $25,000,000 and in the
next three years averaged $27,000,000. The losses in Canada
during recent years, apart from forest fires, and with a popula-
tion of about 7,000,000 were considerably higher than in the
United Kingdom with its 45,000,000 people ; per capita in 1917, ac-
cording to figures compiled by the Toronto Financial Post, it was
64 cents in Great Britain, 74 cents in France, $2.26 in the United
States and $4.01 in Canada.
Forest fire-losses ran, in addition, from $8,000,000 to $15,-
000,000 though this estimate could only be approximate. Good
work in prevention was, however, under way and in Ontario the
Fire losses decreased from 16 to 11 million dollars between 1916
and 1920. In an Ottawa proclamation by the Governor-General
issued on Sept. 23, 1921, and appointing Oct. 9-15 as Fire Pre-
vention Week, it was stated that reliable statistics showed that
at least 80 per cent, of fires originated either directly or indirect-
ly through inexcusable ignorance and neglect and were, there-
fore, preventable and that the exercise of reasonable prudence
66
THE CANADIAN ANNUAL REVIEW
and proper carefulness on the part of responsible individuals
would reduce losses by fire in Canada to the comparatively in-
significant proportions of losses in other countries. G. F. Lewis,
Assistant Fire Marshal of Ontario, told the Rotary Club, Toronto
(Oct. 7), that:
64 per cent. — or practically two out of every three — of fires occur in
our homes, and are caused by bad housekeeping, accumulations of litter,
faulty construction, or careless habits. The great bulk of the loss is due,
however, to fires in factories and stores, with dwellings and farm barns
running in third and fourth places. Our Fire losses in Canada, on a per
capita basis, are 10 times greater than the average of the five principal
European countries in normal times, the Insurance premiums in Canada
are approximately five times more than the English rates, and our fire
waste is about five times as great on a per capita basis.
It may be added that during 1920, Canada's fire loss in prop-
erty destroyed amounted to $27,800,000, in addition to which
about $29,000,000 was paid in Insurance premiums over and
above the amount returned to policy holders. Interest and up-
keep of waterworks for Fire protection represented an annual
expenditure of $6,200,000 while Fire departments, including in-
terest on capital invested in equipment, maintenance, etc., called
for $7,640,000 more. Private fire protection, which was a rapidly
growing form of insurance against fire loss, entailed a yearly
cost, principally upon business interests, of $6,350,000. With all
this total of $73,990,000, as the 1920 cost of fires and protection,
the lack of interest by the general public in fire prevention was
very great, though it was practically paying a tax of $9.25 per
capita, or for an average family of five, $46.50. The Monetary
Times estimate of fire losses in Canada for 1921 was $29,987,510
—the 67 larger fires ranging in losses from $100,000 to $750,000
each. Cecil S. Wainwright, Secretary of the Western Asurance
Co., estimated the total at $31,000,000.
In addition to the ordinary house and industrial losses and
occasional conflagrations were those from Forest fires. In
Canada during 1921 there were very considerable fires of this
nature. Around Prince George, B.C., and up and down the
Grand Trunk Pacific lines in that Province during May ; around
the village of Villeray, Quebec, during June, and in the Abitibi
region of Northern Quebec in July ; throughout many sections of
Northern Ontario and along the T. and N. O. Railway, also in
July ; on Cape Breton Island, N.S., sweeping over the hamlet of
Newhaven and down to the coast at Neil's Harbour late in July ;
in various parts of New Brunswick— including St. John, King's,
Queen s, Charlotte and Kent Counties and entailing large lum-
bering losses while destroying three villages, late in July and
early in August; near the village of Aylmer, Quebec (Aug. 11)
and sweeping over and beyond it with tremendous rapidity ; over
a hundred square miles of Arctic area near Fort Norman on the
Mackenzie and Carcajou Rivers late in July; in a wide area of
THE INSURANCE INTERESTS OF CANADA IN 1921 67
Northern Alberta, chiefly during May and October, and covering
large areas of forest and more or less settled country — alto-
gether these fires caused damage hard to estimate and a lasting
loss, much greater than the immediate one.
There were strong efforts made to combat the evil. The
Firemen's Association of Ontario and those in other Provinces
did continued service ; the Ontario Fire Protection League of
which Arthur Hewitt, Toronto, was President, did splendid work
in popular education ; the Dominion Fire Prevention Association,
which met at Ottawa in Convention on Sept. 23, re-elected W. H.
Shapley, Toronto, as President and G. D. Finlayson, Ottawa, as
Secretary was a vigorous organization. It passed Resolutions
warning smokers of the danger of carelessness, urging larger
Government support to prevention organization, denouncing the
inferior forms of matches made in Canada and urging an inves-
tigation of national fire hazards. The Pacific Coast Associa-
tion of Fire Chiefs met at Victoria on Sept. 27 and James Smart,
President of the Dominion Fire Chiefs' Association, addressed
the Convention, which took action along the line of preventing
over-insurance of property, discussed the relation of Fire insur-
ance to Fire prevention and of building safeguards and debated
the risks of gravity feed systems for coal-oil stoves and the air-
pressure of gasoline feed systems, etc. Preventive legislation
was passed in Ontario, New Brunswick, and British Columbia
during the year.
During 1921 Canadian Fire, as well as Life, insurance shared
in the re-action from war-time activities and post-war inflation.
In the Fire business there was a considerable contraction in
volume and, also, an expansion in the losses incurred. Exact
figures are not available at the time of writing but G. D. Finlay-
son, Dominion Superintendent of Insurance, stated* that the
total Fire and Casualty premiums reported to the Department
for taxation during the first nine months of 1921 amounted to
$55,065,890 compared with $56,504,368 for the corresponding
period in 1920; that the reduction was greatest in the third
quarter of the year, and it would, therefore, not be surprising if
the figures for the entire year showed a decrease of at least 10
per cent. As eventually published the Fire losses of the year
1921 were $45,615,930. The influx of British and Foreign fire
companies into Canada continued during the year and included
the Caxton Insurance Co., the Autocar Fire and Accident Insur-
ance Co., the Patriotic Assurance Co., the British Oak Insurance
Co., and the United British Insurance Co. of Great Britain; the
Pacific Fire Insurance Co., the N. Y. Reciprocal Underwriters,
the Individual Underwriters and the Security Insurance Co. of
New Haven, U.S. ; the Urbaine Fire Insurance Co. of France.
*Note— Statement in the Financ ial Post, Toronto, Jan. 6, 1922
68 THE CANADIAN ANNUAL REVIEW
During 1921, also, substantial reductions in Fire insurance
rates became effective in British Columbia and, later in the year,
in several cities of Ontario; they were made by the Companies
voluntarily in recognition of favourable loss ratio or increased
protection from fire. A continued development of this year was
the reluctance of Canadian capital to go into or remain in Fire
insurance Companies. In 1909, according to the Dominion Sup-
erintendent of Insurance, there were 21 Canadian stock com-
panies doing business, and all but three were owned by purely
Canadian capital; on Dec. 31, 1919, of the 33 stock companies
licensed for Fire business, 16 were owned or controlled by com-
panies other than Canadian; during 1920 at least three more
joined the majority. The underwriting profit of Canadian com-
panies at this time was 8-37% of cash premiums, and for all
companies 853% and this, apparently, was not sufficient to at-
tract capital to the Fire business. The following were the of-
ficial Dominion figures of Fire insurance for the year 1920:
Net Cash Net Amount Net Amount Net Amount
received at rick on of losses paid for
Companies premiums Dec. 31, 1920 incurred losses
during year
Canadian Companies $7,992,418 1,1 12,748,4] 1 $3,287,170 $3,206,439
British Companies 25,325,678 3,002,755,482 11,260,879 10,954,885
Foreign Companies 17,247,760 1,855,826,379 8,383,080 7,783,790
Totals for 1920. $50,565,856 $5,971,330,272 $22,931,129 $21,945,114
Totals for 1919 $40,031,474 $4,923,024,381 $16,778,373 $16,679,355
Provincially the Dominion Superintendent issued the fol-
lowing figures for 1920: Alberta, net premiums written $3,983,-
076, net losses incurred, $1,374,450; British Columbia, net prem-
iums written $5,470,568, net losses incurred $1,655,671; Mani-
toba, net premiums written $4,235,484, net losses incurred $1,-
735,975 ; New Brunswick, net premiums written $2,812,096, net
losses incurred $1,862,803; Nova Scotia, net premiums written
$2,958,370, net losses incurred $2,061,658; P. E. Island, net
premiums written $238,610, net losses incurred $84,291 ; Quebec,
net premiums written $12,460,374, net losses incurred $7,098,162;
Saskatchewan, net premiums written $4,346,405, net losses in-
curred $7,098,162.
Incidents of 1921 included a considerable reduction in the
rates of Fire insurance in effect at Toronto on all classes of
houses and household furnishings — it was authorized on Dec. 16
and totalled about 15 per cent.; the continued organization in
the Western Provinces of (1) the Northwestern Mutual Fire
Association of Seattle, Washington, operating under the aus-
pices of the Retail Merchants' Association of the various Prov-
inces, and (2) a group of hardware mutuals of Minnesota and
Wisconsin, operating under the name of the Hardware and Im-
plement Underwriters' Agency. These concerns wrote retail
risks and particularly hardware, implement and garage risks,
operated direct with the assured and promised to save their
I
THE INSURANCE INTERESTS OF CANADA IN 1921 69
policyholders from 35 to 50 per cent, in their Insurance rate.
Other incidents were the claim of the Fire Companies that their
taxation was becoming too burdensome — varying in the Prov-
inces from 1 to 2 per cent, on net premiums, 2 per cent, on gross
premiums with other special taxes and, over all, a Dominion
license fee and tax ; the vigorous protest of the Canadian Manu-
facturers' Association against a proposed Dominion tax of 15
per cent, on unlicensed Fire insurance written in Canada — chief-
ly because of the value of such competition in reducing rates ;
the decision of the Ontario Superintendent of Insurance (Evan
Gray), following upon the Report of Mr. Justice Masten, to
recommend legislation limiting the remuneration that could be
paid to Insurance agents throughout Ontario to an amount not
exceeding a flat rate of 15 per cent, of the premium on all classes
of business.
This proposal and similar suggestions in other Provinces
were vigorously opposed by many Insurance men as being class
legislation, as a hardship to deserving agents, as savouring of
Government control and opposed to the operation of the law of
supply and demand. On the other hand, it was contended that
the current expense ratio per premium was too high and was
gradually increasing — the profit per cent, of cash premiums be-
ing only 548 of an average over a 50-year period; it was stated
by the Dominion Superintendent that agents in the larger centres
received rates of commission from 5 per cent, to 10 per cent, in
excess of rates paid in smaller places. The Canadian Fire Under-
writers' Association met in Montreal on Feb. 15 with Lyman
Root, President, in the chair, and declared by Resolution on this
point (1) opposition to Mr. Evan Gray's specific proposal; (2)
readiness to continue its effort to arrive at an agreement satis-
factory to all the Companies; (3) opposition to any legislation
dealing with the rates of commission payable by companies. In
British Columbia the Provincial Fire Insurance Agents' Associa-
tion met at Victoria on Oct. 6-7 and discussed with J. B.
Daugherty, Superintendent of s Insurance, certain Government
proposals as to licensing of agents — G. L. Schetky of Vancouver
was elected President. The Western Canada Fire Underwriters'
Association, of which A. W. Blake, Winnipeg, was President,
announced its objects as including: (1) The fixing of equitable
rates of fire and tornado insurance ; (2) the regulation of policy
wordings; (3) the regulation of compensation for business; (4)
the regulation of agency appointments.
Important Insurance Appointments of 1921.
Company Position Name Location
Western and British
America Insurance Co. Director and Vice-President... Wilfrid M. Cox Toronto
Western and British
America Insurance Co.. Assistant General Manager EJ. F. Garrow Toronto
British America Assur-
ance Co Secretary C. S. Wainvmght Toronto
70 THE CANADIAN ANNUAL REVIEW
Company Position Name Location
North British and Mer-
cantile Insurance Co Manager for Canada, C. A. Richardson Montreal
Occidental Fire Insur-
ance Co President C. A. Richardson Montreal
Excelsior Life Insurance.. Director. Hon. J. L. Perron, K.C., M.L.C.... Montreal
Northern Life Insurance General Manager R. C. MacKnight London
Sovereign Life Assurance Director W. H. Carter Winnipeg
Metropolitan Life Insur-
ance Co Supt. of Agencies for Canada Geo. Doyon Ottawa
Confederation Life Asso-
ciation Director. R. S. Waldie Toronto
Sun Life Insurance Co.. ..General Manager of Agencies. .Hon. J. C. Tory, M.L.A Montreal
Monarch Life Assurance Supervisor of Agencies M. B.Farr. ...... Winnipeg
Mutual Life Assurance
Company of Canada. ...Director. C. Vincent Massey Toronto
Mutual Life Assurance
Company of Canada... .Executive Committee Maj. Gen. S. C. Mewburn,
C.M.G Hamilton
Mutual Life Assurance
Company of Canada.... 1st Vice President R. O. McCulloch Gait
Western Life Assurance Director R. H. Hamlin Winnipeg
Confederation Life Asso-
ciation Manager for Nova Scotia W. P. Moore Halifax
Confederation Life Asso-
ciation Medical Director Dr. E. M. Henderson Toronto
Miscellaneous Forms of Insurance. The growth of such
forms of Insurance as Accident, Automobile, Burglary, Employ-
ers' Liability, Guarantee, Hail, etc., was slow but steady between
the years 1900 and 1919; in the former year there were few of
them in existence in Canada ; in 1919 the total premiums received
ran up to $15,000,000 and the losses to half that amount. Em-
ployers' Liability Insurance was greatly affected by the growth
of Workmen's Compensation laws; Hail insurance had begun
to develop in 1915 and rose from $744,333 of premiums and $402,-
216 of losses to $5,796,502 of Premiums and $2,370,932 of losses
in 1920; Burglary insurance was very small up to 1915 when it
totalled $91,885 in premiums and $24,007 in losses, but in 1920
the respective totals were $690,079 and $411,813.
Unemployment insurance was much discussed in after-war
years and the Report of the British Agricultural Wages Board,
published early in 1921 and following upon a wide National ex-
perience of the policy, stated as to its extension to agriculture
that: "(1) There is general opposition, both by employers and
workers, to such inclusion under the Unemployment Insurance
Act 1920," and that (2) there was no evidence of any general
agreement such as would be necessary for the consideration of
a voluntary scheme outside of that Act, and independent of State
aid. At the close of 1920 Great Britain had extended its system
of compulsory unemployment insurance to include 12,000,000
workers, or two-thirds of the entire number of employed per-
sons, and nearly one-fourth of the entire population ; at the same
time the benefits had been increased, and the weekly cash pay-
ments more than doubled. During 1921 conditions improved
somewhat and on Feb. 23 360,000 men and 250,000 women were
drawing benefits, and nearly as many more part-time benefits ;
the Fund still held £20,000,000 and the total Government dona-
tions of this kind from 1918 to 1921 had run to £40,000,000. The
THE INSURANCE INTERESTS OF CANADA IN 1921
71
system had not yet commended itself to Governments in Canada
or the United States though the Canadian Minister of Labour
(Senator Robertson) stated in the Senate on Feb. 24 that a plan
was under consideration.
Automobile Insurance grew greatly in these later years and
the Premiums exceeded $5,000,000; with such constant liability
to accident, and actions for damage, they might well have been
larger. The Canadian Automobile Underwriters' Association met
at Ottawa on Nov. 28-30 with delegates present from three
Western Associations, which had become affiliated, and elected
W. T. Perry President and J. H. King Secretary. Several com-
panies obtained Dominion license during the year to transact
Burglary Insurance ; a number of Companies in Montreal re-
fused mercantile open-stock Burglary insurance unless mer-
chants fitted their premises with electric protection. It was
stated by the Montreal Financial Times (May 7) that two of the
largest institutions in that city had recently taken out Insurance
against loss covering all the business transacted by their Foreign
departments.
Compulsory Health Insurance was seriously discussed in
British Columbia ; at the same time, it was asserted that the
States of Maine, Connecticut, Illinois, Wisconsin, Minnesota and
California had refused, after careful consideration, to enact such
a law. Another new form of Insurance in this year was that
against loss of Profits caused by Fire under certain conditions.
Industrial Insurance continued to grow and was largely in the
hands of the Metropolitan Life Insurance Co. of New York,
which claimed to have $407,757,217 in force from Canada and to
have placed $123,016,735 in 1920 with Investments in Canada
totalling $62,000,000. Weekly Premiums and protection for all
the members of a family were the distinctive features of this In-
surance. The total of Premiums received on all these Dominion
and Provincial forms of miscellaneous Insurance were, in 1920,
$25,899,023 and the Claims paid $12,168,252. Omitting very small
figures for Explosion, Funeral, Forgery, Live-stock, Sprinkler-
leakage, Steam Boiler, Tornado and Weather, the totals were as
follows :
Class
Accident, Sickness Fraternal
Accident
Automobile
Burglary
Liability.
Guarantee
Hail
Inland Transp
Plate Glass
Sickness (Fn
Sickness
Sickness and Funerals com
bined (Fraternal)
New Premiums Received
Dominion Provincial Total
Claims Paid
Dominion Provincial Total
$3,414,372
5,264,897
$250,013
109,720
$3,664,385
5,374,617
$1,492,05.)
1,149,364
$137,384
49,992
$1,629,434
2,733,752
481,019
14,005
495,024
203,983
7,232
211,215
3,162,518
... . 1 272 514
165,626
46,092
3,328,144
1,318,606
1,542,198
178,194
104,713
7,670
1,646,911
185 864
5,800,026
jortation. .. 423 663
726,090
6,526,116
423,663
2,377,799
222,720
228,616
2,606!415
222,720
690476
' 138^425
828,901
409,393
69^650
479043
ternal)
709 661
709661
558,898
552,898
1,575,548
5,983
1,581,531
""£6741032
2,825
1,076,857
... 389,006 389,006
193,347
193,347
72
THE CANADIAN ANNUAL REVIEW
Prices in
1921; Na-
tional In-
fluence of
this Con-
dition.
The question of lower prices and the cost of
Deflation of living was, during this year, fundamental to all the
processes of deflation and changes in financial or
industrial conditions— the United States situation
in this respect affected every turn of the tide in
Canada. The net increase there in the cost of living
from the beginning of the War to November, 1920,
had been 63 per cent. The rise in cost of the major
items in a wage-earner's family budget during this period was
estimated to have been as follows : Food, 52 per cent. ; Shelter,
69 per cent. ; Clothing, 61 per cent. ; Fuel and light, 79 per cent. ;
Sundries, 78 per cent.* In Canada, according to the Dominion
Department of Labour, the changes in cost, by groups which in-
cluded Food, Fuel, Rent, Clothing and Sundries, over the year
1913, was 61 per cent, in December, 1918, and this rose during
the period of after-war inflation to 79 per cent, in December,
1919, and 101 per cent, in July, 1920 ; then deflation commenced
and in March, 1921, the increase fell to 77 per cent., in June, 1921,
to 63 per cent., and in December to the actual total of the War
increase — 61 per cent, over 1913 prices.
The peak in cost of living and high prices was reached in
the United States at the same time as in Canada. The items thus
defined as going into the cost of living were, however, not all
that were involved in prices of production and costs of com-
merce. There also were divergencies between wholesale and re-
tail falls in price as there had been in the increases ; there were
differences between Canada and the United States when de-
tails were considered. In Canada, according to the Department
of Labour, wholesale prices of all products declined between
March, 1920, and September, 1921, 347 per cent.; in the United
States (to June, 1921) according to Bradstreets, the decline was
491 per cent.; in Great Britain, to September, 1921, it was, ac-
cording to The Statist, 438 per cent. In retail prices the Retail
Merchants' Association of Canada undertook a thorough inves-
tigation of prices in 1920 and 1921, as charged at retail stores
throughout the country, and reported at the close of the latter
year the following decreases:
Product
Decline
Product
Decline
Groceries 44-49
Furs 37-3
Dry Goods 31-6
Hats, Men's 31-25
Ladies' Wear..... 30-9
Clothiers
Men's Wear. 28-8
Boots and Shoes 26-3
Merchant Tailors 20-8
Confectioners. 17-8
Butchers. ~ 15-0
... 29-16
In Canada the deflation in Agricultural crops had gone far
by the beginning of 1921 ; Index numbers issued by the Depart-
ment of Labour showed a decrease in 1919 and 1920 from 343-5
to 234 7 for wheat alone and for all field crops from 2527 to 204-9.
•Note.— Report by the National Industrial Conference Board, New York.
NATIONAL INFLUENCE OF THE DEFLATION IN PRICES 73
All classes of farm products, however, continued to fall in 1921
and food supplies decreased to the consumer proportionately. A
vivid illustration of this condition was given by the Toronto Globe
on May 19 as taken "from the window of a large down-town
store" and in connection with the fact that a year before 100
pounds of granulated sugar had cost $22.00 : "The same sum to-
day will buy 100 pounds granulated sugar; a 24-pound bag of
flour ; 14 pounds cornmeal ; 14 pounds rolled oats ; 1 bag potatoes ;
5 pounds onions ; 8 pounds carrots ; 6 pounds rice ; 2 pounds but-
ter ; 2 pounds tea ; 2 pounds coffee ; 2 pounds cheese ; 2 dozen
eggs ; 2 tins peas ; 2 tins corn ; 4 tins tomatoes ; 1 pail plum jam ;
1 pail marmalade; 1-pound tin shortening; 2 pounds prunes; 10
cakes of soap." During much of this year prices ranged a little
higher in Canada than in the United States ; in May the general
level of wholesale prices as against May, 1920, was 46-2 per cent,
lower in the United States (Federal Reserve Board) 374 per
cent, in Great Britain, according to The Statist, and 304 per cent,
in Canada. John Wanamaker, in one of his advertising state-
ments in the New York Times, gave a list of his prices in certain
lines at these two periods as follows:
Articles
Prices, May 1st, 1920 Prices, May 1st, 1921
Women's Coats $75.00 to $135.00
Women's Blouses 8.75 to
Women's Hosiery, (all silk) 3.50
36-inch Taffeta, Silk and Satin 3 .95 to
31-inch White Broadcloth Silk 3.00
Women's Low Shoes 10.00
Men's Low Shoes 14.00
Velvet Carpet, Yard 4.50
Bed Blankets, pair 13. 00 to
Men's Suits 60.00 to
Men's Silk Shirts 10.00
25.00
5.50
20.00
115.00
$48. 00 to $98. 00
5. 75 to 15.00
2.75
1.95 to
1.55
4.75
7.85
2.50
9. 00 to
35. 00 to
6.50
2.50
12.75
70.00
In June a further price-reducing wave swept over the United
States, and in Canada reductions continued upon a more moder-
ate scale — influenced in both countries by curtailment of exports,
the tremendous fall in agricultural products and continued de-
preciation of European currencies. At the close of the year
prices in Canada were still from 50 to 60 per cent, above pre-war
rates, but there were distinct evidences of stabilizing conditions
and of cessation in the persistent deflation of past months ; there
were even slight indications of recovery and advance in Canada
and the States though the decline continued in Great Britain to
a moderate degree. Taking Canadian prices by wholesale
figures* over a range of 40 commodities the following table il-
lustrates very clearly the tremendous change in conditions dur-
ing this year:
Month, 1921
January
Index
No.
212.6
197.8
190.0
186.4
176.8
169.8
Per cent,
decrease
4-
6-4
3-9
1-8
4-6
3-9
Month, 1921
July
Index Per cent
No. decrease
167.0 1-7
165.4 -9
164.4 -6
161.5 1-7
160.0 -9
161.9 1-2
February
August
September.
October
March
April
May
June
November
December
*Note. — Compiled by Prof. H. Michell of McMaster University, and published in Toronto'
Globe, Jan. 2, 1922.
74 THE CANADIAN ANNUAL REVIEW
Incidents in the process of price-cutting were many and
varied. Hotels and Restaurants withstood the process for a long
time though C. P. R. dining-cars made a 25 per cent, cut early in
the year and a further reduction on June 1st; in September it
was announced that C. P. R. Hotels would, on Oct. 1st, reduce
their meal rates by 15 per cent. The change was not uniform,
however, and in the United States the Rubber Association of
America issued a circular in October declaring that "the entire
system of sales by travelling salesmen is actually threatened by
the present high hotel, sample room, transportation, sleeping-car
and excess baggage charges." It was claimed that hotel men had
not reduced their prices to conform with the general decline in
all commodities, and in proof of this tables were given of reduc-
tions in wholesale prices of products and articles forming part of
the essential supplies required by these institutions. The dates
given were May, 1920, to May, 1921, and conditions were not dis-
similar in Canada — the Toronto Globe of Oct. 11 declaring that
hotels in Canada were justified in increasing rates during war-
time, but that few of them had made reductions to correspond
with what might be called the cost of production. Some of the
figures of reduced Hotel costs as given may be specified here :
Article Per cent. Article Per cent.
Flour. 50 Labour. 20
Potatoes. 75 Sugar 70
Lamb. 40 Beef. 33
Eggs. 40 Coffee 50
Tea 20 Fruits 70
Lard 50 Soap 25
Butter. : 50 Towels. 40
In November Montreal restaurants announced a reduction
of from 15 to 20 per cent, and in other cities there had been vary-
ing but usually slight reductions — the higher-class places main-
taining high prices pretty generally throughout the year. Sugar
and candy dropped steadily in price and woollen goods were cut
in half by manufacturers and wholesalers ; coal kept up till about
the close of the year, but there was a gasoline reduction of two
cents in April and again in August; meat prices fell but not in
correspondence with the fall in cattle prices which, during Feb-
ruary, reached pre-war levels at the Toronto stockyards; milk
was reduced generally and so was bread; lumber prices were re-
duced during February and by April had almost reached the pre-
war level plus the 50 per cent, increase in freight rates, while
building costs remained away up as the result of wage rates
where no deflation would be accepted; newsprint fell from an
average of $130 a ton by about 30 per cent, to September, 1921,
One cost of living item which persisted in high charges up to
the end of the year — as a result, probably of the high cost of
building— was apartment and house rentals. By the end of 1921
prices of products generally were steadying, money was getting
cheaper, the Bank of England and U. S. Federal Reserve rates
had recently been reduced and the industrial situation, generally,
was clearing.
INTERNATIONAL RELATIONS
OF
CANADA
Interjected into the storm-tossed seas of inter-
The National national controversy during the three years ending
Status of in 1921, was the question of the National and inter-
Canada: national rights and status, the constitutional claims
anT En^ron- and demands, of Canada and other British Domin-
ment of the ions. It^was discussed at the Versailles Conference.
Issue. it held a place in the League of Nations' creation
and Convention, it found voice in the Supreme
Council at Paris and its sittings in London or elsewhere, it had
conspicuous place in the Geneva Conferences of the League of
Nations, it was discussed during the United States Presidential
Elections of 1920, it dominated the Imperial Conference of 1921,
it was involved in the creation and proceedings of the Dis-
Armament Conference at Washington.
The International importance of this issue, which was first
raised by Sir Robert Borden in 1919 at Versailles and afterwards
pressed by Mr. Meighen at the 1921 Conference in London, was
based upon the vital relationship of British power to the peace
and reconstruction of the world, the position of the Dominions
in that combination of nations which made up the British Em-
pire, the fact that, so far, on all great and fundamental issues,
the British countries had stood together as one, the additional
fact that in requests or demands made by Canada or any other
British Dominion, there was, usually, behind them the vast
strength and prestige of Great Britain. There was, also, the pro-
posal to appoint a Canadian Ambassador at Washington.
To European and American statesmen who did not under-
stand or believe that National pride and self-assertion could pos-
sibly live and operate with Imperial unity and action, the whole
issue looked like a gradual and graduated effort toward separa-
tion and independence. They regarded the movement much as
their sympathies or dislikes led them to regard Great Britain
and British power in general — in the one case with hope that it
might widen the bounds of liberty without destroying unity, and
in the other casf; with assurance that it would eventually lead to
separation and would, meanwhile, divide British counsels and
weaken British power. As to the Empire itself, careful thinkers
and publicists in Great Britain and in the Dominions were some-
what divided in view ; many believed that the greater the liberty
the stronger would be the unity; others feared the outcome as
involving independence and republicanism under the disguise of
gradual development.
While this movement was going on abroad, while Canadian
political leaders were discussing Canada's status in the capital of
[751
76 THE CANADIAN ANNUAL REVIEW
the Empire and at internatonal gatherings, Canadians were not
at all disturbed or alarmed. Only a few of the newspapers dis-
-cussed the issue seriously and they sometimes mixed up their
phraseology so that it was difficult to understand what was
meant, either from a constitutional or a patriotic point of view-
as when the Manitoba Free Press (Aug. 13) referred editorially
to Canada asserting its position as "an independent Sovereign
State within the British Empire." Parliament discussed the
matter in various forms of academic or theoretical thought as
subjects associated with the acceptance of War treaties, or
League of Nations affairs, or the Imperial Conference, or Wash-
ington Conference matters, or the subject of Titles, or that of
'"Ambassadors, came up. But there was no direct discussion of
fundamental issues or conditions as between Imperial relations
and responsibilities and International functions and duties. In-
directly, the Japanese issue of the year was at once an illustra-
tion of the importance of this large question of national status
and an indication of possible Dominion tendencies in Foreign
policy. Through and about the whole broad question was the re-
lationship of Canada to the United States and of Australasia to-
ward Oriental nations. Canada was, in fact, taking a place in
Foreign affairs without having its place within its own Empire
defined to the consciousness of its own people or to the intel-
lectual perception of other nations. The Toronto Globe of Aug.
19 had, in this connection, an excellent generalization :
It is often said that Canada enjoys the status of a nation in all but
Foreign relations. But if we look at things rather than forms and names,
we discover that Canada enjoys as much independence in regard to for-
eign relations as many countries which formally rank as independent.
The smaller nations of Europe enjoy just as much or as little independ-
ence of action as the bigger ones choose to allow. Belgium would prob-
ably have been part of France or Germany if one Power had not been
jealous of the other and Great Britain determined that Belgium should
be annexed to neither. The new States are creations of the Supreme
Council representing the strong Powers. But when foreign relations are
considered no nation can be said to be independent.
Non-intervention in the affairs of Continental Europe was for some
time the policy of a school of British thinkers. But when any single
Power threatens to dominate Europe — as France under the first Na-
poleon, or Germany the other day— Britain feels itself compelled to in-
tervene and to form alliances for self-preservation. Canada took part in
the European war, although it had no part in shaping European policy
before the War. But the United States, an independent and powerful
nation, was in much the same position. It had tried to maintain the tra-
dition of Washington and keep clear of European entanglements ; it
was not cencerned in any European quarrel ; yet it was almost forced to
enter the War.
As to Canadian opinion of the situation, it was very largely
unexpressed. Extremists on the one side proclaimed all the pro-
posals and trend of the day in controlling, or attempting to con-
trol, Foreign policy, or in asserting Canada's position, as being
directed toward Independence, and J. S. Ewart, K.C., Henri Bour-
THE NATIONAL STATUS OF CANADA; DISCUSSION OF THE ISSUE 77
assa and Lindsay Crawford rejoiced accordingly; many Im-
perialists held much the same view as to final results and deplor-
ed current conditions with equal sincerity; the great mass of
public opinion was voiceless but with a vague and indeterminate
feeling that some working system must and would be found by
which Canada and other Dominions could guard their foreign
policy without any serious discussion of Independence or sep-
aration. Mr. Justice WV R. Riddell, in Toronto, on Jan. 17, de-
clared that conditions under which the self-governing Dominions
were associated with the United Kingdom in an all-British
League of Nations were not the business of Foreign powers;
his views embodied very largely the idea of alliance as the Em-
pire status. The Hon. N. W. Rowell maintained throughout the
year his devoted allegiance to the League of Nations and, at
Halifax on May 5, defined his aspirations as follows : "The recog-
nition and maintenance of the equality of status of the self-gov-
erning nations of the British Commonwealth and the preserva-
tion of the unity essential to the strength and security of the
whole ; the progressive development of our position as an inter-
preter and mediator in Anglo-United States relations so that
Anglo-Saxon nations may co-operate in promoting peace, justice
and ordered liberty ; co-operation to the measure of our ability in
supporting the League of Nations as a most hopeful and prac-
tical experiment." During March the Grain Growers' Guide of J
Winnipeg had a series of reviews of Canada's assumed status by
Dr. O. D. Skelton, Professor of History at Queen's University,
Kingston, which declared in summarized form that the following
were essentials in the evolution of Canadian nationality:
1. Formal power to amend our own Constitution.
2. Emancipation from the legal power of a British Parliament to
make laws for us, and of a British Government to disallow our own laws.
3. Abolition of the appeal to the Privy Council.
4. Formal recognition of the power to make treaties and appoint
representatives abroad, beginning with a Minister at Washington.
5. Consultation with our allies in the Empire through Conferences,
not Cabinets.
6. Recognition of the fact that Foreign affairs are not something
that can only be discussed abroad, but matters, so far as they concern
us at all, to be debated first in our own Parliament or considered in a
Parliamentary Committee.
7. Clear evidence to the world that the British Empire of other
days is now not one State, but many, by clearing away the ambiguities
in International recognition and in Imperial institutions and policy
which still remain.
8. No revision of Imperial constitutional relations in the coming
Conference without previous discussion and authorization in the Cana-
dian Parliament, and ratification afterward.
Following this period came Mr. Meighen's assertion of
Canada's right to intervene in the Japanese Treaty question and
to press the contention that abrogation would be wise and right
in view, especially, of British and Canadian relations with the
78 THE CANADIAN ANNUAL REVIEW
United States ; out of this asserted right came the effort to have
a Conference of Pacific Powers in London; finally the Washing-
ton Conference was evolved. Mr. Meighen went to London with
the full intention of discussing Foreign affairs and the Japanese
Treaty in particular; during several days these subjects were
uppermost in consideration and in cable reports to the United
States where more was stated about this development than in
Britain or Canada. On June 27 a lengthy Conference debate
took place on Foreign policy following Lord Curzon's able and
ample review of the world-policy of the British Foreign Office
at this juncture. Details were not made public, and the follow-
ing abstract of the Canadian Premier's principles, as presented,
were not published officially nor even referred to in official form.
But they were cabled to Canada by Grattan O'Leary, a Cana-
dian newspaper correspondent who had crossed with Mr.
Meighen and was understood to be in his confidence ; this sum-
mary was never denied and was accepted by the press of Canada
as accurate. The four points of Canada's current position on
Foreign policy were thus given :
1. That on all questions of Foreign policy which more directly con-
cern the British Government, such as matters arising in connection with
Palestine, Mesopotamia and the Middle East, the Governments of the
Dominions should be kept thoroughly and constantly informed.
2. That upon all questions of Foreign policy affecting the Empire
as a whole, the Dominion Governments must be consulted.
3. That the British Government should enter into no treaties or
special alliances without consultation with, and the advice of the Do-
minions, and that all such treaties, even when entered into, be subject to
the approval of the Dominion Parliaments.
4. That upon all questions arising as between the United States and
Canada, the advice of the Canadian Government should be accepted as
final.
In practice, this latter point had long been conceded and
acted upon; Canada in effect controlled the Empire's policy in
North America as India guided or affected British policy in the
East. Mr. Meighen wanted the principle established and put in
some concrete form. This was not done though the whole de-
velopment of the period was along the line of the points so
raised. British opinion in the matter was illustrated by Lord
Milner's statement (Times, June 24) : "Incessantly of late years,
and with increasing emphasis, Dominion statesmen have claimed
a right to have a voice in determining the Foreign policy of Great
Britain. Nobody can dispute — nobody, as far as I know, has dis-
puted— the justice of that claim. The only difficulty is to find
put how it can be done. It is a purely practical difficulty. There
is, as far as I know, no difference of principle." A debate in the
House of Commons on June 17 further indicated this attitude
and Mr. O'Leary, quoted above, declared in a despatch to the
Toronto Globe that if there was one thing more than another
about the debate which impressed the small group of Canadians
THE NATIONAL STATUS OF CANADA; DISCUSSION OF THE ISSUE 79
who listened it was that Radicals vied with Unionists, and La-
bourites with Liberals in emphasizing the "recognition of the
Dominions as co-equal partners in a commonwealth of self-
governing States."
There were, of course, other and very far-flung views. F. W.
Eggleston, an Australian publicist, in the Quarterly Review for
April, characterized Canada's aggressive action as to Japan and
the United States as "the carelessness of irresponsibility". Sir
William Irvine, Chief Justice and ex-Premier of New South
Wales, declared at Sydney on Mch. 31 that: "The Dominions
have acquired no new status since the War, and the principle
that Australia, South Africa, and Canada should have completely
independent relations with Foreign Powers is mischievous and
unsound. The King can speak with only one voice, whether in
Cape Town, Toronto, or Sydney. We are one and indivisible in
our Foreign relations, and treaties are made between Powers
and not between communities." The London Times of Aug. 26
stated that the experiment under way was vital and important:
"The Dominion peoples will come to understand that the share of
their Prime Ministers in the control of the Foreign policy of the
group lays upon them the obligation of living as citizens of coun-
tries having a definite part in the duty of international conscious-
ness, with all that it involves." The official Australian view as
stated by its Prime Minister, Rt. Hon. W. M. Hughes, was ex-
plicitly put in The Times (Aug. 26) :
We are many and yet we are one, and this Imperial Conference has
crystallized this vital doctrine of Empire. As we proceeded to run the
gamut of the great questions that were presented for our consideration,
each one of us became more and more convinced that our interest, and
indeed our safety, depended upon unity, and that this unity in regard to
Foreign and inter-Empire affairs was only to be obtained by a frank
recognition of the right of all the members of all the great Dominions as
well as the Motherland to have an equal voice in the formulation of For-
eign and Empire policy.
Mr. Hughes did not think much of the League of Nations
and preferred what he termed the League of Empire ; he did
want the friendliest relations with the United States as a card-
inal principle of Empire policy and this, also, was strongly urged
by General Smuts, Premier of South Africa. In addressing his
Parliament on May 20 the latter said : "In the first place, I con-
sider it necessary not to go in for any policy of antagonism on
the Continent of Europe, but for a policy of peace ; and in the
second place, I think, from a world point of view, the essential
policy for the British Empire is to work with America, to secure
her co-operation, and in that way to go forward in the very
difficult world-task that lies before our Government." On Nov.
1st General Smuts dealt, in an interview, with the question of
Dominion representation at the Washington Conference and the
fact that the United States' Government had invited only the
80 THE CANADIAN ANNUAL REVIEW
British Empire and not its component parts to be represented.
He declared Dominion status to be a matter not only "funda-
mental in the present critical Irish negotiations but also for the
future peace and welfare of the whole British ^Empire," and
eulogized the position taken at Versailles, where, "in the British
Empire Delegation our individual standing was unquestioned
while our team work made us a really effective force"; he de-
scribed this as "a great precedent settling our international
status" and expressed keen resentment at the action of the
United States.
On the other hand, the Montreal Star had, some time before
this (Aug. 11), argued that such an invitation from Washington
was impossible: "It is not the business of any Foreign Power
to assume that the British Empire is not a unit in its Foreign re-
lations. It would indeed run grave danger of being an offence
for any Foreign Power to make such an assumption. If that
assumption is to be presented seriously to the world, it must be
presented by ourselves. We must demand recognition as a
separate nation, and be prepared not only to quaff the heady
glory of it, but also, to bear its burdensome responsibility as
well." The United States had not, originally, desired to recognize
this peculiar international status of the Dominions at Versailles
but President Wilson had been compelled to do so by the in-
fluence of Great Britain; the Republican party had protested
vigorously in the United States against the voting recognition of
British Dominions in the League of Nations and this policy was
again embodied by President Harding. The New York Tribune
of Oct. 8 put the issue fairly and, from the Foreign standpoint,
very concisely, as follows : "The United States couldn't properly
invite the Dominions to sit in the Conference of their own right.
Their status with regard to other nations is still somewhat inde-
terminate, in spite of Mr. Lloyd George's statements at the open-
ing of the recent Imperial Conference in London. The British
Government hasn't yet notified the world that so far as interna-
tional relations are concerned they are independent states."
The general American view of the situation was, of course,
natural. The Sovereignty and Independence of Canada, which
many writers and speakers thought was coming, involved to
their minds the extension of the Monroe Doctrine to Canada,
the final elimination of Great Britain from North America, a
treaty offensive and defensive between Canada and the United
States against Europe (including Britain) and Asia including
\Japan. Judge D. F. Cohalan of the New York Supreme Court
declared in the Forum of March that "to-day, with the exception
of the flag of Holland covering a small territory, the only re-
maining one is that of England, and the final extension of the
Monroe Doctrine will push England from this Hemisphere. We
should now shape events so that there will be no longer in the
THE NATIONAL STATUS OF CANADA; DISCUSSION OF THE ISSUE 81
New World any European interests or territories." Others con-
sidered this movement for the control of Dominion Foreign
policy as a part of the wider issues involved in the efforts of a
Hertzog, a Gandhi or a De Valera. Apart from this attitude of
mind altogether, the issue — if it had really involved separation
as so many Americans believed — was a delicate one because they
had in the Republic no such system of government as had the
British Empire, and no such means of dealing with foreign and
colonial problems. There was no United States Foreign Office,
no Colonial Office, no trained Diplomacy, no great Civil Service
such as that of India; there were constant and increasing de-
mands for absolute independence from Haiti and the Philippines,
Porto Rico and San Domingo. It was a difficult development to
meet — that of nations within an Empire — and there was no Am-
erican machinery to apply to their own growing problems.
Sir Robert Borden, whose views were known to harmonize
with those of Mr. Meighen, put the situation as follows in ad-
dressing the Lawyers' Club of New York on Nov. 3rd: "The
voice of the British Commonwealth in world affairs must not be
the voice of the United Kingdom alone, but the voice of all the
British self-governing nations. This principle has been wholly
accepted both in the United Kingdom and in the Dominions.
The precise method by which it shall be worked out in actual
practice has not yet been fully determined, and it is surrounded
with difficulties of undoubted gravity, but not incapable of solu-
tion." General Smuts shared this view and in his reference of
Nov. 1st to the appointment of Canadians on the British delega-
tion at Washington, instead of separately, declared that : "The
Empire will not be represented there in its full authority as a
group of States, and the full weight of the Empire will not be
exerted." The whole situation and the complicated issues in-
volved were guardedly reviewed by Mr. Lloyd George in dealing
with the proposed Dominion status of Ireland in Parliament on
Dec. 14, 1921 :
The position of the Dominions in reference to external affairs has
been completely revolutionized in the course of the last four years. The
Dominions since the War have been given equal rights with Great Britain
in the control of the Foreign policy of the Empire. That was won by
the aid they gave us in the Great War. It would have been inconceivable
that there should have been no representatives of the Dominions at Ver-
sailles, or at Washington. A million men — young men, strong, brave,
indomitable men — had gone from all the Dominions to help the Mother-
land in the hour of danger, but, although they came to help the Empire
in a policy which they had no share in passing, they felt that in future
it was an unfair dilemma to put them in.
We acceded to this view gladly. The machinery is the machinery
of the British Government — the Foreign Office, the Ambassadors. The
machine must remain here. It is impossible that it could be otherwise,
unless you had a Council of Empire where you had representatives elect-
ed for the purpose. Apart from that you must act through one instru-
ment. The instrument of Foreign policy of the Empire is the British
Foreign Office. That has been accepted by all the Dominions as inevit-
able, but they claim a voice in determining the lines of our policy, and at
4
82 THE CANADIAN ANNUAL REVIEW
the last Imperial Conference they were here discussing our policy in Ger-
many, our policy in Egypt, our policy in America, our policy all over the
world, and we are now acting upon the mature and general decisions
arrived at with the common consent of the whole Empire. The sole con-
trol of Britain over Foreign policy is now vested in the Empire as a
whole.
Canada's share in the Peace Treaty at Versailles
Canada was not so much an essay in Foreign affairs as it
and was participation in a great World Conference as
Irfe N^tonf: one of Great Britain>s partners— called by the
A First Motherland to help in the settlement of vital post-
Escay in war issues — and acting with her upon a new na-
Foreign tional footing which was only possible, at that par-
1920and 1921 ^lcu^T juncture, because of British power and
' 'prestige. As a result of British pressure at Paris and
Rome and Washington and Tokio, as well as at Versailles,
Canada and the other Dominions were included as national en-
tities in the signatories to the Treaty and in the clauses of the
Covenant of the League of Nations. To the work of Sir Robert
Borden at the Conference and the enthusiastic support given in
Canada by Hon. N. W. Rowell, much individual credit was due.
The first meeting of the League saw a different situation
with Canada's representatives acting, as appointees of the King,
and with exactly the same powers and rights as the British dele-
gates. Much was hoped from the creation of the League, much
was feared, much, in the United States, was suspected. The
bringing together of the Allied nations in such a compact — even
without the United States and Russia — was a great event, the
ultimate adhesion of 51 nations or countries to the Covenant was
a wonderful pledge of peace; the greatest preliminary accom-
plishment of the League in its first year or two of office was the
fact of its existence — the actual operation of its Council and
Assembly and Secretariat. By the close of its first year the
League had 48 States represented in its machinery; an assured
yearly income of $5,000,000 and the ownership of its central
building and offices at Geneva costing $100,000; a permanent
Secretariat with a staff of 200 people under control of Sir James
Eric Drummond of Great Britain as Secretary-General, with a
salary of $16,000. .Sir Herbert B. Ames, M.P., of Canada, was ap-
pointed Financial Director of the League. This Secretariat was
divided into 10 Sections including Political, Economics and Fin-
ance, Administrative, Commissions, a Registry Bureau for
Treaties, the Mandate and Legal Sections, and those of Interna-
tional Health and Social Questions.
This organization was the first accomplishment of the
League; others may be summarized in the following order: (1)
Formation of the International Labour Organization and its
various Conferences; (2) the work of the Council as (a) the
governing power in the Saar Valley and ruling through an ap-
CANADA IN FOREIGN AFFAIRS — THE LEAGUE OF NATIONS 83
pointed Commission, (b) as the ultimate and protecting power
of the City of Danzig and its territory, (c) as a peace-making
force in the Balkans and between Finland and Sweden, and
Lithuania and Poland, (d) in the repatriation of 300,000 war-time
prisoners; (3) the work of the Assembly, acting as a Congress
of Nations under a written constitution, in discussing the policy
and operations of the Council and Secretariat, and in planning
and organizing the programme of the League ; (4) creation of
12 important Commissions including that of the Jurists who drew
up a plan for the Permanent Court of International Justice, that
of the Dis-Armament Commission, that on Economic Blocade
conditions and possibilities, those dealing with Communications
and Transport, Finance and Economics, International Credits,
International Health and Regulation of Opium and Drug
Traffics, the Mandatory Commission, the Revision Committee,
the Statistical Commission and that on Deportation of Women
and Children in Asia Minor.
Historically, the first meeting of the Council of the League
was held at Paris on call of President Wilson (Jan. 16, 1920)
with the invitation sent to the Governments of Great Britain,
France, Italy, Japan, Belgium, Greece, Brazil and Spain. The
Dominions were not represented upon the Council and were not,
of course, invited, though in effect they were represented by
Great Britain. Those present were M. Bourgeois, Lord Curzon,
Baron Matsui (Japan), M. da Cunha (Brazil), Premier Venizelos
of Greece, Senor Ferraris for Italy, Senhor Quinones de Leon for
Spain and M. Hymans for Belgium. The first meeting of the
Assembly of the League was held at Geneva on Nov. 15, 1920;
up to this time 9 Council meetings had been held in Paris, Lon-
don and Brussels. At the Assembly meeting 41 nations were re-
presented and M. Hymans was chosen President. Amongst the
Delegates were Arthur J. Balfour, Rt. Hon. G. N. Barnes and
Rt. Hon. H. A. L. Fisher of Great Britain; Lord Robert Cecil
representing South Africa; Sir G. E. Foster, Rt. Hon. C. J.
Doherty and Hon. N. W. Rowell of Canada ; Senator Millen for
Australia, and Rene Viviani and L. Bourgeois, France ; Sir James
Allen for New Zealand ; President Morta, Switzerland ; Viscount
Ishii and Baron Hayashi, Japan; Hjalmar Banting, Sweden;
H. A. Van Karnebeek, Holland; Edouard Benes, Czecho-Slova-
kia; Antonio Huneus, Chili; T. Tittoni, Italy; Take Jonescu,
Roumania ; A. da Costa, Portugal; Quinones de Leon, Spain; V.
Wellington Coo, China; M. Paderewski, Poland. The Session
lasted until Dec. 18 and there were present 241 delegates speak-
ing 15 different languages, with the following 41 nations repre-
sented :
British Empire-
Great Britain
Canada
Australia
British Empire —
India
New Zealand
South Africa
Italy
Netherlands
Spain
Norway
Brazil
Chili
Liberia
Panama
84 THE CANADIAN ANNUAL REVIEW
Persia Belgium Paraguay Haiti
Poland Peru China Switzerland
Portugal Roumania Columbia Greece
Siam Japan Cuba Venezuela
France Salvador Czecho-Slovakia Guatemala
Argentina Sweden Denmark Uruguay
Jugo-Slavia Honduras Bolivia
During the Session Austria, Bulgaria, Finland, Luxembourg
and Costa Rico were admitted to membership. Sir George
Foster was Chairman of the Canadian Delegation. Mr. Rowell,
from the beginning, took a high place in the Assembly and, ac-
cording to the London Telegraph, shared its honours with Mr.
Balfour, Lord R. Cecil, M. Viviani, M. Bourgeois and another.
On Nov. 19 he took a strong line in favour of restricting the
activities of the League to its primary function — namely, the
prevention of war — and urged admission of all nations as soon
as they had complied with the conditions laid down. On Dec. 8
he warmly attacked the Council of the League for assuming too
much power and opposed certain plans for the technical organi-
zation of the League in Commissions as to Finance, Health,
and Transportation because, he claimed, they tended to take such
bodies out of the hands of the Assembly, which should control
them, and throw them under the influence of the Great Powers
of Europe who controlled the Council.
There was, also, the difficulty of non-European nations send-
ing their best men to several such meetings annually: "The
Assembly should not set up a machine which it cannot control.
The countries of Europe being on the spot, will control these
Bureaux. This might be all right if the League were a European
League, but it is a world League. It is not that we have not the
greatest respect and admiration for European statesmen, but
simply that they do not understand our point of view. You may
say that we should have confidence in European statesmen.
Perhaps ^ we should. But" — he declared with rhetorical em-
phasis— "it was European statesmen, European policies, and
European ambitions that drenched the world in blood, a tragedy
from which the world is suffering and will suffer for generations ;
50,000 Canadian soldiers under the soil of France and Flanders
is what Canada has paid for European statesmanship." This out-
burst, so different from the calm analysis of conditions and argu-
ments to which European statecraft and diplomacy were accus-
tomed, evoked varied remarks from the delegates. Finally, Mr.
Rowell took the floor again and said he did not mean to attack
European statesmen in general, and rather than give offence
preferred to withdraw his words.* He also vigorously opposed
the Italian delegation's proposal as to certain control over the
world Is raw materials by one of the Commissions and said that
Canada would never consent.
by John MacCorn»ack «n Montreal Gazette and Toronto Mail and
CANADA IN FOREIGN AFFAIRS — THE LEAGUE OF NATIONS 85
Sir George Foster was largely instrumental in promoting
the practical action of raising the sum of $1,000,000 for the
relief of Polish typhus sufferers ; his eloquence swept the dele-
gates into line and even persuaded Mr. Balfour to change cer-
tain conditions attached to the British contribution. Mr.
Doherty took an active and important part in the framing of the
International Court constitution and, on his motion, States which
were not a party to the original League Convention were allow-
ed to select groups of their own with power to nominate Judges ;
another motion assured to Canada and the Dominions the right
to bring cases before the Court. Mr. Doherty also moved the
Resolution proposing to delete Article X of the Covenant which
guaranteed the territorial integrity of the member-nations of
the League, in order to meet the policy of the United States but,
after discussion, its consideration was referred to the Committee
on Amendments. Canadian delegates on Dec. 16 favoured the
admission of Armenia but the vote was 8 to 21 against ; Mr.
Rowell's Resolution expressing the hope that President Wilson
would intervene in that country was carried.
Incidents of the meeting included a more or less continued,
indirect but obvious, clash between the Council and the Assembly
as to their respective powers ; the decision not to amend the
Covenant at this time, despite the demand of Canada and others
for the elimination of Article X so as to facilitate the entrance
of the United States ; the determined stand taken by Canadian
delegates against the Council despite the fact that Britain more
or less dominated its policy and, necessarily so, in view of its
huge responsibilities and aid to European reconstruction ; re-
fusal of the request to admit Germany and the withdrawal of
Argentina because of the rejection of certain proposals which it
favoured; the final approval of Mandates granted to New Zea-
land for Samoa, to Australia for New Guinea and other Islands
south of the Equator, to the South African Union for German
South-Western Africa, to the British Empire for Nauru and to
Japan for the Pacific Islands north of the Equator; the prelim-
inary organization of the International Court of Justice.
The general plan of this Court had been prepared by an
Advisory Committee of Jurists selected by the Council of the
League and including Lord Phillimore, Great Britain ; M. de
Lapradelle, France ; Baron Descamps, Belgium ; Dr. Loder,
Netherlands ; Elihu Root, United States ; M. Ricci-Busatti, Italy,
and 4 others. The general scheme developed by this Committee
was accepted by the Council and by the Assembly on Dec. 13,
1920, subject to its final approval by a majority of the nations;
provision also was made for ratification by the United States.
The Court was to sit at The Hague with 11 members to be select-
ed by the League; its jurisdiction was to be voluntary as the
four Great Powers had refused to allow compulsory powers ; the
election was in the hands of the Council and Assembly of the
86 THE CANADIAN ANNUAL REVIEW
League but the nominations were by national groups. Mean-
while the main work of the Assembly had been done by the six
large Commissions with the Canadian delegates variously dis-
tributed. Mr. Doherty was on the Commissions as to Mandates
and the International Court of Justice ; Mr. Rowell, the Commis-
sions on Organization and Admission of New States to the
League ; Sir G. Foster on those of Technical Organizations and
the Finances and Budgetting of the League. In addition Sir
George represented the Dominion on .the Financial and Eco-
nomic Commission.
In Canada during 1920 the discussion as to the League of
Nations had been led by Mr. Rowell supported by Sir Robert
Borden. The former spoke earnestly upon many occasions and
vehemently criticized the Lenroot motion in the United States
and the American attitude as to Canada's place in the League.
To the Toronto Globe on Jan. 10, 1921, he stated after his return
from Geneva that, up to this time, the most important work of
the League had been the establishment of the Court of Justice :
"That in itself would have made the Assembly one of the greatest
gatherings of modern times." An important discussion had dealt
with the question of making the hearing of International dis-
putes before this body compulsory or voluntary. The Assembly
finally decided in favour of voluntary appearance. An incident
of 1920 was the appointment of R. D. Waugh, ex-Mayor of Win-
nipeg, largely through British influence, as one of the Interna-
tional Commissioners in the Saar Valley and he helped to meet
a severe local epidemic of the foot and mouth disease by urging
adoption of the Manitoba scheme initiated by the late Valentine
Winkler, Minister of Agriculture, under which picked stock was
supplied to the farmers by the Provincial Government on a long-
term credit plan. It was accepted and proved successful though
the financing was done by small Community banks instead of by
a Government.
In the Commons on Feb. 16, 1921, Sir G. Foster, Minister of
Trade and Commerce, stated that there was no friction between
any of the Members of the British Empire delegation : "We did
not always talk the same way. Each State was perfectly free in
giving its views and in that way I think maybe a better accord
and better results were obtained than if there had been any
thought of acting as a unit." By April, 1921, Canada and 27 other
States had signed the Protocal creating the International Court
and the Secretariat had asked these countries to submit candi-
dates for consideration at the next meeting of the League. In
the Canadian Parliament on Apr. 14 Mr. Doherty, as Minister of
Justice, presented his Bill authorizing the ratification and carry-
ing into effect of the Protocol adopted by the Council of the
League on Dec. 13-14, 1920, signed by the Canadian representa-
tives in the Assembly Mch. 30, 1921. The 2nd reading took place
CANADA IN FOREIGN AFFAIRS — THE LEAGUE OF NATIONS 87
on Apr. 28, when Mr. Doherty explained that the Court was open
to all nations with general interests and to the lesser ones with
particular interests ; that absolute equality of representation had
not been obtained but as nearly so as was possible ; that the juris-
diction of the Court was dependent upon the consent of the in-
terested parties ; that the Court would sit as a Court of Justice
to apply the accepted principles of international law which the
nations had recognized as binding upon themselves and to per-
form duties as a Court deciding questions of law and of right be-
tween the parties ; that Canada had not signed a second Protocol,
accepted by some of the nations, making the jurisdiction of the
Court compulsory upon themselves. The measure passed in due
course without opposition. On June 22 Sir Herbert Ames gave
the House of Commons a review of the work and position of the
League ; urged Canada to keep politics out of International rela-
tions and to take warning from the example of the United States ;
described limitation of armaments as one of the most important
functions of the League, and foresaw the end of secret diplomacy
through the publication of all Treaties — though as a matter of
fact the most important proceedings of the Council of the League
were secret and its current policy was dominant ; stated that as
Financial Director he knew something of the work and attitude
of the Council whose members were men of exalted standing
and, he believed, sincere in their support of the League. As to
Canada, he added this statement :
The position attained by Canada in the League of Nations marks a
long step forward in our constitutional development. In the Assembly,
Canada is on equality with the other states. She is eligible for a vote
on the Council, although, in view of the fact that the representative of
the British Empire will always have a seat in that body, it is not likely
that Canada's claim would be pressed. She has the right, however, of
voting for the election of one half of the Council. Her voice will help
to determine the composition of one-half its membership. Further,
Canada has the right of direct access to the Council on any question
specially affecting our interests.
Any question intimately affecting Canadian interests will not be
dealt with by the Council unless the Canadian representatives are seated
at the Council board. In view, then, of Canada's position as a full mem-
ber of the League of Nations, it is important that her deputation at the
Assembly should include her foremost statesmen. Furthermore, that
there may be no parting as between the several Overseas Dominions
having the same rights as ourselves, it is extremely important that be-
fore the Assembly meets the representatives of the various parts of the
British Empire should hold converse together and mutually study the
questions which will come up.
Following this incident came the International Emigration.
Conference at Geneva on Aug. 3, 1921, under the chairmanship
of Lord Ullswater (formerly Mr. Lowther, Speaker of the Com-
mons), and with 6 Governments sending delegates, 6 other coun-
tries sending employers' delegates and Germany, Italy and
Sweden sending Labour representatives. The United States,
Australia and the Argentine were not represented; the Cana-
88 THE CANADIAN ANNUAL REVIEW
dian delegate was Lieut.-Col. Obed Smith, Commissioner of
Emigration in London. The Conference held 14 sessions and
passed 30 Resolutions, the most important being that which in-
sisted on the sovereign right of each State to declare who should
enter or leave it. The Resolutions passed were forwarded to
the Secretariat of the League of Nations and to the International
Labour Bureau at Geneva.
The second Assembly of the League opened at Geneva on
Sept. 5 and sat till Oct. 5, 1921. The British Empire delegates
were as follows : United Kingdom, A. J. Balfour, H. A. L. Fisher,
Sir Rennell Rodd; Canada, C. J. Doherty, Sir George Perley;
India, the Maharajah of Cutch, Sir William Meyer, Srinivasa
Sastri ; Australia, Captain S. M. Bruce, Mr. Shepherd ; New Zea-
land, Sir James Allen ; South Africa, Prof. Gilbert Murray, Lord
Robert Cecil, Sir E. Walton. Delegates from 48 States were
present and Dr. H. A. Van Karnebeek, Dutch Minister of Foreign
Affairs, was elected President. On Sept. 17th 11 Judges and 4
Deputy Judges were elected to the Court of International Jus-
tice— Great Britain being represented by Viscount Finlay, Lord
Chancellor in 1916-19, and the United States by John Bassett
Moore, Professor of International Law at Columbia University.
The others were all more or less eminent Jurists and represented,
in a national sense, the following countries : Spain, Italy, Brazil,
Cuba, Switzerland, Netherlands, Denmark, Japan, France, Rou-
mania, China, Jugo-Slavia and Norway. On Sept. 23 Latvia,
Lithuania and Esthonia were admitted to the League, bringing
the membership up to 51. Amongst the subjects discussed were
Armaments, their proposed reduction and the difficulties caused
by the absence of the United States, Germany and Russia — to-
gether with the statement that 15 States had accepted the
League recommendation of 1920 not to exceed for two financial
years the current Budget provision for Armaments ; the traffic
in Arms between various countries which had become dependent
largely on what the United States would consent to do ; detailed
conditions under which the Economic weapon might be used by
the League and the methods of administering Mandates ; the
position of Armenia and Albania and the Commission sent by the
League to deal with the Vilna dispute ; power of revising old
Treaties which was declared not to exist and consequent refusal
to intervene between Chili and Bolivia.
As to Canada, Mr. Doherty was elected Chairman of the
Committee on Humanitarian and Relief Organization and ex-
officio a Vice-President of the League; Sir George Perley on
Sept. 22 carried an Amendment requiring that at least one-half
the members of the League — instead of one-third — could call a
Transit Conference when the League was not in session ; the 6th
Commission of the League adopted a proposal of Mr. Doherty
that the Council of the League be invited to direct the attention
CANADA IN FOREIGN AFFAIRS — THE LEAGUE OF NATIONS 89
of the Ambassadors' Conference to the urgent need for regulat-
ing1 the status of Eastern Galicia ; Mr. Doherty also renewed his
contention for the elimination of Article X from the League's
constitution. The Committee having this matter in hand could
not accept his view and adopted an interpretative Resolution to
the effect that Article X was never intended to perpetuate geo-
graphical and political divisions as they had existed but merely
to be a safeguard against external aggression; eventually the
matter was again deferred to the next Assembly. Mr. Doherty
and Sir Robert Borden had been nominated by Canada for the
International Court but the former withdrew and Sir Robert
failed to be elected.
Following the League Conference came the 3rd meeting of
the International Labour Conference established and called under
League auspices. The first Conference had been held at Wash-
ington in 1919 and the second at Geneva in 1920. It was held at
Geneva on Oct. 25-Nov. 19 with representatives of 39 countries
present including Britain, Canada, Australia, India and South
Africa with, also, France, Germany, Japan and Italy. There were
68 Government delegates and 25 each from Employers and
Workers with 234 advisers in attendance. The Canadian delega-
tion was as follows : Government — Gerald H. Brown, Ottawa,
and Lieut. -Col. J. Obed Smith, London; Technical Advisers —
Hon. W. R. Rollo, Minister of Labour, Ontario, Hon. T. H. John-
son, Attorney-General of Manitoba, Hon. A. Galipeault, Minister
of Labour, Quebec, and Fernand Roy, K.C., Quebec; Employers'
Delegate — S. R. Parsons, Toronto, and Technical Adviser, E.
Blake Robertson, Ottawa ; Workers' Delegate — Tom Moore,
President Trades and Labour Congress, and Technical Adviser
Arthur Martel of Montreal.
Lord Burnham, of London, was elected President and special
Commissions were appointed to study and report upon the var-
ious issues before the Convention. The result was the adoption
of 7 draft Conventions and 8 Recommendations. The former
fixed the minimum age for admission of young persons to em-
ployment as Trimmers or Stokers ; provided for the compulsory
medical examination of children and young persons employed
at sea; prohibited the use of white lead in painting; adopted pro-
posals concerning the rights of Agricultural workers to associa-
tion and combination; approved and defined the proposals for
the protection and compensation of agricultural workers against
accident ; dealt with and forbade the employment of children
under 14 years of age in any public or private agricultural under-
taking within school hours ; applied and defined laws as to a day
or hours of weekly rest in industrial undertakings. The Recom-
mendations included the following:
1. Development of Technical Agricultural Education.
2. Measures for prevention of unemployment amongst agricultural
90 THE CANADIAN ANNUAL REVIEW
workers with adoption of modern methods, improved system of cultiva-
tion, provision for land settlement and better transport facilities.
3. Establishment of systems of special agricultural insurance against
sickness, invalidity, old age and other social risks.
4. Regulation of employment of children under 14 or young persons
up to 18 employed in agricultural work during the night and assurance
of a period of reasonable rest.
5. Regulation of employment of women wage-earners in agricultural
undertakings with provision of suitable rest period.
6. Protection of women wage-earners in Agriculture before and
after child-birth.
7. Improvement in living conditions of agricultural workers.
8. Assurance of a 24-hour period of rest in each week for industrial
workers.
During the discussions S. R. Parsons on Oct. 29 declared
it unwise to attempt interference with agricultural labour. Leg-
islation on the subject could not be enforced because Agriculture
was a seasonal industry and could no more be regulated than
could wind, rain and snow. It would be unwise, he thought, to
adopt Conventions which the various Governments could not
pass into legislation. He quoted figures which Tom Moore
. o jclaimed to be inaccurate. There was, during the Conference, a
(distinct division between European and non-European interests.
Meanwhile, there had been considerable discussion of the League
in Canada but not in any heated or even enthusiastic way ; in the
General Elections it was but slightly referred to. Mr. Rowell
spoke from time to time, and on Jan. 22 told the Canadian Club,
New York, that Canada had stood for the North American view-
point at Geneva as against the purely European point of view and
should have had the United States beside her : to the Teachers of
Toronto on Jan. 18 he spoke at great length upon the record and
progress of the League ; at Saskatoon on Feb. 23 he addressed the
Saskatchewan School Trustees on the same subject ; he was at
Edmonton on the 22nd and was banquetted at Winnipeg on the
25th ; he addressed the I. O. D. E. in Toronto on May 30th. Mr.
Doherty addressed the Empire Club, Toronto, on Mch. 31 ; in the
Senate on May 19, Hon. R. Dandurand expressed regret that
Canada had not succeeded in making the International Court
reference compulsory and its jurisdiction absolute.
The League of Nations Society of Canada was organized at
Ottawa on May 31 at a meeting presided over by H. E. the Duke
of Devonshire and addressed by Sir George Foster ; Sir Robert
Borden ; L. P. D. Tilley, K.C., ; Dr. H. M. Tory, of the University
of Alberta ; G. S. Campbell, Halifax; P. M. Draper, of the Trades
and Labour Congress, and others. A Resolution was unanimous-
ly passed defining the policy of the Society as follows: (1) To
promote International peace; (2) to furnish information about
the League of Nations, its principles, its organization, and its
work; (3) to study International problems and Canada's relation
thereto as a member of the British commonwealth and of the
League of Nations; (4) to foster mutual understanding, good
CANADA IN FOREIGN AFFAIRS — THE LEAGUE OF NATIONS 91
will and habit of co-operation between the people of Canada and
other countries in accordance with the spirit of the League of
Nations; (5) to promote the establishment of Provincial or
local associations.
The Hon. Presidents chosen were Mr. Premier Meighen;
Hon. W. L. Mackenzie King and Hon. T. A. Crerar ; President,
Rt. Hon. Sir R. L. Borden ; Vice-Presidents, Hon. N. W. Rowell
and Hon. H. S. Beland; Hon. Secretary, Vincent C. Massey,
Toronto ; Hon. Treasurer, A. J. Brown, K.C., Montreal. A meet-
ing of the new League was held in Toronto on Oct. 9 with Sir
Robert Borden in the chair and Hon. E. C. Drury, Provincial
Premier, Hon. N. W. Rowell and Mr. Justice Riddell amongst the
speakers. Mr. Drury declared that: "We in Canada possess an
opportunity no other nation in the world possesses of taking the
first and greatest and most necessary step in promoting a good
understanding, which would be so strong that nothing could
shake it, between the British Empire and the United States." In
Great Britain at this time the League of Nations Union, with
similar aims and policy, was very effectively organized with 550
offices throughout the country, a membership of 112,000 and a
yearly expenditure of $200,000.
Incidents in this connection included Sir George Perley's
statement in London (Oct. 10) that alterations in League sub-
scriptions had been arranged so that Canada paid 35 units to
Great Britain's 90; he also stated that the Dominion had given
generously towards European relief from Typhus. Mr. Rowell,
in a Toronto address on Nov. 22, stated that : "France was justi-
fied in refusing to disarm without sufficient international guaran-
tees, such as those set forth in the Peace Treaty, to which the
United States had refused to subscribe." He added the following
statement bearing upon Canada's current development : "What
the world needs is not more of the spirit of self-determination,
but more of the spirit of unity — not more national isolation — but
more genuine and sane international co-operation. Two of the
outstanding lessons of modern history are that the nation state,
that is, a separate independent sovereign state, is no longer an
adequate form of political organization to meet the needs of
human society, and that force is no longer a sane and practicable
method of permanently settling disputes between nations." ]
During 1920 and 1921 the position of Canada at Geneva, and
its policy in respect to the League, undoubtedly was largely
affected by the United States attitude. The position taken
against Article X of the Covenant under which the League
undertook "to respect and preserve as against external ag-
gression the territorial integrity and existing political independ-
ence of all members of the League" was influenced (1) by a
desire to placate the United States and help to obtain its support,
and, (2) objection to guaranteeing all existing European national
92 THE CANADIAN ANNUAL REVIEW
alignments. The Republic, however, went its own way and the
Republicans in the Senate used their majority to block the Treaty
and the Covenant with unlimited Reservations— including that
of Senator Lenroot which declared that "the United States as-
sumes no responsibility to be bound by any election or finding
by the Assembly of the League of Nations in which any member
of the League and its self-governing Dominions, Colonies or
parts of the Empire, in the aggregate, have cast more than one
vote."
As to this the New York Globe (Feb. 12) stated that "the in-
terests of the United States in the League will be amply protected
by the provision, which England and her Dominions are quite
willing to endorse, that no one of the British membership shall
vote in any dispute in which the Empire or any of its members
is a party." Prof. A. Bushnell Hart, of Harvard, added this
comment in the New York Times (Feb. 16) : "The United States
controls five votes amongst its protectorates (Cuba, Panama,
Dominican Republic, Nicaragua and Haiti), and has a much
greater assurance that nobody will break away." As to the
British attitude, Lord Grey of Fallodon was explicit in a letter
to The Times (Jan. 31) : "The self-governing Dominions are full
members of the League. They will admit and Great Britain can
admit, no qualification whatever of that right. Whatever the
self-governing Dominions may be in the theory and letter of the
constitution, they have in effect ceased to be Colonies in the old
sense of the word. They are free communities, independent as
regards all their own affairs and partners in those which concern
the Empire at large. To any provision which makes it clear
that none of the British votes can be used in a dispute likely to
lead to a rupture in which any part of the British Empire is in-
volved, no exception can be taken."
In Canada Mr. Rowell, who still was a member of the Gov-
ernment, took vehement exception to the attitude of the TJ. S.
Senate against Canada's right to separate place and recognition
in the League and at Ottawa on Feb. 2 said : "I do not so read
the Covenant. Canada owes allegiance to the same Sovereign
as Great Britain and so long as she continues to do so she would
be a party in interest and disentitled to vote. If she disclaimed
interest and claimed the right to vote she would thereby pro-
claim her independence, and this she will never do." There was,
he thought, only one answer to the proposition. As to this,
however, Prof. O. D. Skelton argued, (Globe, Feb. 6), that there
was no British Empire, but only a Britannic Alliance. To an
Ottawa mass-meeting on Feb. 15, Mr. Rowell added: "Canada
cannot and will not assent to any impairment of her status or
voting rights under the Treaty."
From Congress the issue went to the Presidential elections
where it became largely a political matter— although Republicans
CANADA IN FOREIGN AFFAIRS — THE LEAGUE OF NATIONS 93
such as W. H. Taft, H. C. Hoover, G. W. Wickersham, were sup-
porters of the League. Senator W. G. Harding was quite definite
in his policy and stated at Des Moines (Oct. 7) that: "I do not
want to clarify these obligations ; I want to turn my back on
them. It is not interpretation but rejection that I am seeking."
He favoured (Marion, Ohio, Oct. 11) some other expression of
the same ideal : "I am in favour of a world association — call it
what you will, the name is of slight consequence — that will dis-
courage or tend to prevent war." The Democratic candidate and
party supported the League. After the Elections President
Harding, in his first Message to Congress (Apr. 12, 1921) con-
firmed and emphasized his position: "In the existing League
of Nations, world governing with its super-powers, this Repub-
lic will have no part. It is only fair to say to the world in
general and to our associates in the War in particular, that the
League Covenant can have no sanction by us. In rejecting the
League Covenant and uttering that rejection to our own people
and to the world, we make no surrender of our hope and aim for
an Association to promote peace — in which we would most
heartily join." In succeeding months, however, there was no
actual hostility shown to the League ; there even was a tacit
recognition in the protest addressed to it regarding Mandates
and certain new issues which arose ; a prominent American, no
doubt with permission of his Government, accepted a place on
the International Court of Justice.
Such were the issues involved in the 1920-21 record of the
League of Nations. During this period the League won strong
friends within the British Empire and it had vigorous and con-
vinced opponents. It undoubtedly interjected the spirit of Inter-
nationalism into that vast and vague entity: it involved new
problems and difficulties in the relationship of its various count-
ries ; it created possibilities of difference and divergence amongst
them which could not exist under a united Foreign policy and
administration ; it effected, and may have weakened, the prestige
of Great Britain as the head and centre of a great combination
of nations. On the other hand, it helped to show the people of
the Dominions how great were the problems facing the Mother-
land and the Dominions ; it was an educative factor in Foreign
affairs and conditions and, properly handled, should draw the
nations of the Empire together in a co-operative effort to meet
great issues ; it made each of the Dominions a recognized factor
and unit in world affairs — strengthened by the knowledge that,
whatever the minor differences between sections of the Empire
which might show at Geneva from day to day, any vital or funda-
mental question would probably re-unite the countries concerned.
Mr. Premier Hughes of Australia was one of the critics of
the League, as General Smuts of South Africa was one of its
chief protagonists. He declared that : "When Britain called the
94 THE CANADIAN ANNUAL REVIEW
Dominions they came without question, without delay and
if they called to-morrow for aid Britain would come in the same
way. But if the Empire or any of its countries called to the
League of Nations would it come, or if it called to us would we
go ?" He did not think so. He believed its polyglot forces to be
a broken reed and in an Australian speech on Mch. 24, 1921, said:
"I saw what the League was, and what it would be, when at the
Peace Conference. If you realize what the League is you will
never be under any delusions as to what it can do. It consists
of 42 nations recruited from all countries of the world and of all
colours, and there is not one of them outside the British Empire
with any conception of the ideals of Australia. I have not found
one of them our friend. If the League failed Poland, what of
Australia, 12,000 miles away? There is but one existing League
of Nations to-day which is our sure and certain protection, and
that is the League of the British Empire/'
Mr. Premier Massey of New Zealand was by no means en-
thusiastic in his support of the League and Sir James Allen, High
Commissioner in London, feared complications and difficulties if
the Dominions carried on their relations with the League apart
from the British Foreign Office. Both declared, during 1921,
that in any serious issue between the League and the Empire
they would stand by the latter. It was at this time quite obvious
to the student and thinker that the whole situation involved more
and more the exercise of caution and diplomacy on the part of
Canadian and Dominion leaders ; more and more a ripe or in-
creasing knowledge of Foreign affairs ; more and more a clear
comprehension of what were the Foreign interests of Canada
and their relationship to the interests of Great Britain and the
Empire.
\L-Canada was directly interested in the Anglo-
Canada and Japanese Treaty and its proposed renewal because,
es«eTr^aty[ P) of .the fact that the Japanese question touched
A 2nd Essay its Pacific shores and vitally affected the people of
» ^Foreign British Columbia, and (2) because it concerned the
Affairs. United States whose feelings were liable at any
moment to be stirred to a sensational and perhaps
dangerous point by Japanese pressure upon its Pacific coast and
by anti- Japanese agitations in its press and politics. Canada in
this matter, as in so many others, shared the viewpoint of the
United States. American prejudices against coloured peoples
had their inevitable influence in the Dominion as against the ex-
perienced and more liberal outlook of Great Britain — but they
were fortunately not so keen or so pervasive. J
To the United Kingdom as the head of a world-wide Empire,
the alliance with Japan had for years been a valued compact
which was carefully kept on both sides. Its creation had been a
CANADA IN FOREIGN AFFAIRS — THE JAPANESE TREATY 95
triumph for Lord Lansdowne as Foreign Minister; its mainten-
ance had for years stabilized Eastern conditions, assured peace
and absence of naval or other rivalry between the two chief
Oriental Powers, supported British interests against the aggres-
sive policy of Russia in its days of power and slow resistless
sweep over Asia. During and after the War it had helped Great
Britain to hold its prestige intact in the East and to meet the
machinations of German diplomacy and the later efforts of Bol-
shevistic plotting in India, Persia, Afghanistan, Mesopotamia,
Palestine, Egypt and other regions.
There was much written and uttered about Japan in these
later years that was untrue or exaggerated ; much that was real
and accurate. Sensational statements about its policy and op-
pressions in Korea had saturated the American and Canadian
mind with very natural suspicion and distrust, yet H. J. Mullett-
Merrick in the Asiatic Review for May, 1921, said: "No country
in the world ever did or ever will take on such a difficult and
thankless job as Japan, x x x Centuries of corruption among
the governing class (in Korea) had produced a people mentally
debased, without even elementary education, sullen, in the direst
straits of poverty, and undoubtedly the most thriftless people in
the inhabited world. Slavery existed in Korea throughout the
whole of its history until abolished by Japan in 1911." Korea
owed most of its 1,000 miles of railway to Japanese enterprise,
together with a network of similar material improvements. As
to the assimilation of Japanese with other races, experience in
Hawaii, where there were 110,000 of these people with 31,000
Americans, 25,000 Portuguese and a similar number each of
Chinese, Hawaiians and Filipinos showed that Japs, educated in
the Public Schools, rapidly grasped the American language,
ideals and standards ; their adoption of English customs in Japan,
itself, was a matter of world-wide knowledge.
Bishop Lee of Japan put the matter to the Rotary Club, To-
ronto (Apr. 1), as follows: "Japan needs our sympathy to-day.
While we have had Christianity for 1,500 years she has had it for
but 50 years. The merchant has been despised for years and the
soldier has been the top-dog all along. We must remember that
Japan was loyal to the greatest contract in the history of the
world — the Anglo- Japanese alliance. The British Empire ex-
tends all over the world, yet Japan has but little territory and
her 60 million people live on but one-thirteenth of the area of
the islands as the mountains are too steep for habitation. If
Ontario was populated as thickly as Japan the population would
be well over 160,000,000." Incidentally, Japan was, at this time,
Canada's best customer in the East with considerable Canadian
exports to the Oriental empire — wood-pulp, nickel and zinc
spelter, iron and steel, square timber, asbestos, etc.
% THE CANADIAN ANNUAL REVIEW
The other side was, of course, the centuries-old antagonism
in California or British Columbia or Australia between the racial
product and social customs of the East and the West.
United States was not only concerned about the Philippines and
Hawaii in which Japanese interests and Nationals were involved
and California, where they were conspicuous, but believed Japan
was making use of the Treaty with Britain to enhance its own
power and possessions, to coerce Korea and obtain concessions,
commerce and territory in China. Americans realized that Jap-
anese naval power was an important consideration and a vital
one if any conjuncture of circumstances should combine it with
that of Britain; they were not taught to believe that British
friendship was as great as it really was and many feared what,
to the average Englishman, was an utter impossibility; they
knew that Japan, like Germany in the past, was land-hungry and
ambitious and nursing the real grievance of a proud people whose
Nationals were not treated as equals in or by the United States.
They did not know that the Japanese do not naturally like emi-
gration and that their Government had not been able to induce
them to settle either in Korea or Formosa though both countries
were fertile and close to their shores; the people of both the
United States and Canada did know, however, that wherever the
Japanese filtered in and settled they brought their women with
them, that their birth-rate was high, their independence in busi-
ness marked, their industrial initiative excellent, their competi-
tion in labour, and as workers, keen.
The United States also believed that Japanese policy toward
China involved injury to American interests in that country and
that the Treaty in question had prevented Britain joining in
American protests upon more than one occasion; that as the
German and Russian ambitions associated with the original
agreement had passed, it could only be directed in reality against
the United States as the great commercial and naval rival of both
Japan and Britain ; that in all its foreign policy Japan was in op-
position to American interests — to obtain equal privileges and
rights for its people, to hold a free hand in China and to gain the
control of the Pacific ; that in its political and economic subjuga-
tion of Formosa, Mongolia and Manchuria, Japan had been harsh
and oppressive to the people and discriminatory against the trade
of other countries ; that its large increases in Army and Navy
were preparatory for another war and that the closer Japan's
alliance with Britain was, the more dangerous did its policy and
ambitions become to the United States.
On the other hand, a real breach between English-speaking
peoples and Japan might throw the latter into an alliance with
Russia and Germany. Australiasian opinion, as led by its Premier,
was largely in favour of the Japanese Treaty because (1) Japan
had been a real help to these countries in the War and (2) be-
cause they realized very fully how much Great Britain and them-
CANADA IN FOREIGN AFFAIRS — THE JAPANESE TREATY 97
selves needed an ally in Pacific waters ; at the same time Aus-
tralian policy of excluding the Japanese from their territory was
on all fours with that of the United States and Canada — though
the latter's action was based upon a "Gentleman's agreement"
and was not regarded as offensive. Mr. Premier Hughes, in his
notable address to the Australian Parliament on Apr. 7 said: "It
is the bounden duty of Australia to use every means at her dis-
posal to effect such a modus vivendi as will secure a renewal of
the Anglo-Japanese Treaty in a form agreeable to the United
States, x x x I think the interests of Australia lie in a renewal
of the Treaty in some modified form. I see no reason why the
Treaty should not be renewed in a form which would be satis-
factory not only to the Empire and Japan, but to the United
States as well. United States opinion must be considered." The
Ministerial and Country Parties cheered the Premier's state-
ment ; the Labour Opposition was silent.
New Zealand opinion was very similar. The Premier (Rt.
Hon. W. F. Massey) told a New York Tribune correspondent on
June 3rd that : "We have no Japanese problem. Our immigra-
tion laws are so formed as to give us absolute control over aliens
entering our country. This authority is well recognized, and
there has never been any trouble about it." At Victoria, B.C., on
his way to England, Mr. Massey stated on May 6 that: "We have
much to gain and nothing to lose by a renewal of the Anglo-
Japanese treaty. Japan was loyal to the Empire during the War
and we owe her a debt of gratitude. It does not seem to be gen-
erally known that Japan, under the terms of the Treaty, was not
compelled to join Britain in the War. The Treaty referred only
to possible differences in India and the Far East." Mr. Lloyd
George dealt with the Treaty from the British standpoint in
opening the Imperial Conference on June 20 as follows :
Our Alliance with Japan has been a valuable factor in the past. We
have found Japan a faithful ally who rendered us valuable assistance in
an hour of serious and very critical need. The British Empire will not
easily forget that Japanese men-of-war escorted the transports which
brought the Australian and New Zealand forces to Europe at a time
when German cruisers were still at large in the Indian and Pacific
Oceans. We desire to preserve that well-tried friendship which has stood
us both in good stead, and to apply it to the solution of all questions in
the Far East, where Japan has special interests, and where we ourselves,
like the United States, desire equal opportunities and the open door. No
greater calamity could overtake the world than any further accentuation
of the world's divisions upon the lines of race. Our foreign policy can
never range itself, in any sense, upon the differences of race and civiliza-
tion between East and West. It would be fatal to the Empire.
The terms and history of the Treaty must be briefly out-
lined. An understanding, which was not quite a formal treaty,
was signed by the United Kingdom and Japan on Jan. 30, 1902.
The agreement disavowed on the part of each of the contracting
parties any aggressive tendency in either China or Korea, and
98 THE CANADIAN ANNUAL REVIEW
the independence of those two countries was explicitly recogniz-
ed. It provided that Britain in China and Japan in China and
Korea might take indispensable measures to safeguard their own
interests, and that if such measures involved one of the signa-
tories in war with a third power the other signatory would not
only remain neutral but would also endeavour to prevent other
powers from joining in hostilities against its ally, and would
come to the assistance of the latter in the event of its being faced
with two or more powers. Both Powers were actuated by a
desire to meet and discourage the growth of Russian or German
influence in the Far East ; during the continuance of the Agree-
ment the Japanese-Russian War was fought and Japan was aided
.by the prevention of any hostile action on the part of Germany
or France — both those countries being at the time in close rela-
tions with Russia. The actual Treaty of alliance was entered
into in September, 1905, and the scope of the arrangement cover-
ed India and the East generally in the following terms :
1. The consolidation and maintenance of the general peace in the
regions of eastern Asia and of India.
2. The preservation of the common interests of all powers in China
by insuring the independence and integrity of the Chinese Empire and
the principle of equal opportunities for the commerce and industry of
all nations in China.
3. The maintenance of the territorial rights of the high contracting
parties in the regions of eastern Asia and of India and the defence of
their special interests in said regions.
The chief Article in the Treaty was as follows : "If by reason
of unprovoked attack or aggressive action, wherever arising, on
the part of any other Power or Powers, either contracting party
should be involved in war in defence of its territorial rights or
special interests mentioned in the preamble of this Agreement,
the other contracting party will at once come to the assistance
of its ally and will conduct the war in common and make peace
in mutual agreement with it." The Treaty had been made for
10 years but in 1911 (June 13) a new arrangement renewed its
essential features for another 10 years and thereafter until term-
inated by one year's notice. During 1921 negotiations for re-
newal had commenced early and it was understood a three-year
period was under consideration with modifications in the refer-
ences to China and India; China was hostile to any renewal,
United States criticism was at times vehement — especially in the
Hearst press.
In this latter connection Article IV of the 1911 re-adjustment
provided that "should either high contracting party conclude a
Treaty of general arbitration with a third party it is agreed that
nothing in this Agreement shall entail upon such contracting
party an obligation to go to war with the Power with whom such
a treaty of arbitration is in force." This, it was contended and
believed in England, would exclude the United States from any
CANADA IN FOREIGN AFFAIRS — THE JAPANESE TREATY 99
possible situation of the future so far as Great Britain was con-
cerned; Bertram Lenox Simpson, Chief Foreign Adviser to the
President of China, contended that "in the event of war between
Japan and the United States, China would intervene against
Japan, which would oblige Great Britain to come into the war
as against China even though protected by express stipulations
from so taking part in any such war against the United States."
The Arbitration Treaty referred to in the 1911 Agreement,
though signed by Great Britain, was rejected by the United
States Senate in 1912; the Peace Commission Treaty of 1914,
however, which was fully accepted by the United States and a
number of other countries, including Great Britain, was regard-
ed by the United Kingdom as "a general treaty of arbitration"
under the terms of the Japanese Treaty and Japan had been
formally notified to that effect.
A further complication arose when (July 7, 1921) Great
Britain and Japan sent a formal communication to the Secre-
tariat of the League of Nations declaring that so long as the
Treaty was in force its provisions would be modified by Article
XX of the Covenant, which required members of the League to
renounce all special agreements in conflict with the League
Charter. Since all the members of the League were on an
equality and allied for common purposes, any special compact
between two of them for mutual defence of their rights and in-
terests against a third member was theoretically excluded and
the whole issue, apparently, was thus made an international one
instead of being restricted to the two nations immediately con-
cerned. By this time world conditions had entirely changed;
Russia and Germany were beyond the terms of immediate con-
sideration; in the protection of Pacific interests United States
co-operation was as important, or more so, to British common-
wealths^ than was Japanese. There was also another Treaty —
one of "Commerce and Navigation" — signed at London on Apr.
5, 1911, between Britain and Japan and relating exclusively to
the subjects specified. The Dominions were excluded, as had be-
come the custom, from its operation unless they formally as-
sented to it ; in the case of Canada this was done by Parliament
in 1913 with, however, a special clause providing that the citizens
of Japan should, in Canada, be subject to Canadian immigration
laws. This Treaty was to remain in force to July 10, 1923, and
thereafter under one year's notice of termination.
The holding of the Imperial Conference of 1921 occurred
in July when the Treaty was terminable upon one year's notice
and with negotiations well under way for its renewal ; the Prime
Minister of Canada and many newspapers in Canada and the
United States appeared to think — judging from despatches — that
the Treaty actually terminated at this date. The facts were so
well known in Britain that they were not officially referred to;
in the House of Commons on June 17 the subject had been dis-
100 THE CANADIAN ANNUAL REVIEW
cussed, and Sir Samuel Hoare and other speakers took the ob-
vious view that 12 months' notice of termination would have to
be given. As a matter of fact, the Treaty itself was explicit : "In
case neither of the high contracting parties should have notified
12 months before the expiration of the said 10 years its intention
of terminating it, it shall remain binding until the expiration of
one year from the day on which either of the high contracting
parties shall have denounced it."
It cannot be said that Canadian opinion was excited over
the Treaty. Such feeling as did exist was expressed in a few
leading newspapers and in British Columbia and was based (1)
upon the knowledge that people in the Pacific Province keenly
resented the peaceful, economic penetration of that region by
the Japs; (2) upon a belief in certain defined circles that the
Treaty had secured its purpose and was not in accord with post-
war international policy; (3) a feeling that its continuance
might promote competition in Naval armament with the United
States ; (4) upon sentiments of dislike and suspicion against the
Japanese aroused in many Canadian minds by the propaganda of
U. S. magazines, newspapers and speakers. In the final notifica-
tion from the British Prime Minister to the Canadian Govern-
ment as to the subject-matter of the proposed Conference (Oc-
tober, 1920) the following reference* was made : "The question
of the renewal of the Anglo-Japanese Alliance which is, indeed,
only a part of the general subject of foreign relations, but which
is especially urgent, since under the terms of the Alliance, a de-
cision should be reached this year."
Mr. Meighen's comment, after a brief summary of the terms
of the Treaty, was as follows (Apr. 27, 1921) : "I need not en-
large upon how serious, or even how momentous, is the delibera-
tion that must take place as regards the question of the renewal
of that Treaty. The importance of it arises from the interest
of the United States therein, and the interest of Great Britain
and of Australia and other parts of the Empire ; but the import-
ance of it to us arises, in a very great degree, out of the very
great interest of the United States in the renewal or the non-
renewal thereof." He would express no further opinion at this
time ; but there seems no doubt that he went to London with the
determination of securing at least a clear definition of the non-
application of the Treaty to the United States ; the Ottawa
Journal, which was supposed to represent Government views,
was outspoken in its objection to any renewal of the Treaty;
Sir Robert Borden, whose influence in such questions was strong,
was known to be opposed to the Treaty.
As to public opinion, it was indicated only in a limited way ;
the Liberal leaders in Parliament (Apr. 27) made but slight ref-
erence to the matter ; the Montreal Star was favourable to re-
newal if serious Empire interests required it, but hoped that the
*Note.— Hansard, Apr. 27, 1921. Speech by Mr. Meighen.
CANADA IN FOREIGN AFFAIRS — THE JAPANESE TREATY 101
positive exclusion of the United States from its terms might be
possible; the Toronto Star (May 21) was explicit as to Cana-
dian-American concern in the matter and declared that "Canada
should oppose the renewal of that Treaty, and her supreme in-
terest in the matter should be recognized and deferred to"; the
Provincial Government of British Columbia forwarded to Mr.
Premier Meighen at London a cablegram strongly urging that
any renewal of the Treaty should preserve to Canada the right
to restrict Japanese immigration. On June 15 Grattan O'Leary,
the special Canadian correspondent who was supposed to voice
Mr. Meighen's policy, stated that the Premier would oppose re-
newal in the Conference because (1) the reasons which made it
necessary in 1911 had since disappeared; (2) that renewal would
be regarded as a challenge to the United States; (3) that the
formation of special alliances was antagonistic to the spirit of
the times and to the effort to promote disarmament and peace.
Following this the despatches to Canada and the United
States declared in varying terms of assuredness that Hughes of
Australia and Massey of New Zealand favoured renewal and
that Smuts of South Africa and Meighen of Canada were op-
posed to it. One American correspondent (C. W. Ackerman,
Philadelphia Ledger) stated that "so nearly does Premier
Meighen, of Canada, represent the views of the United States on
the Anglo- Japanese question, that he is accredited with repre-
senting the North American viewpoint, rather than merely that
of Canada." The speeches were not made public but certain
facts percolated through to the press and in the Commons on
Aug. 18 Mr. Lloyd George said: "There is a good deal of dis-
cussion on the Japanese Alliance. I do not believe there is any
country in the world, whether it likes the Japanese alliance or
does not like it, that would think any better of the British Em-
pire if we broke off the Alliance — not one. x x x frhat does not
mean that we are to continue an alliance of this kind against any-
one else, and certainly not against the United States of America.
It is a cardinal principle of British policy, and must be, that we
should act in as complete accord with the United States of Am-
erica as any two countries canjfx x x If an alliance with Japan
could merge in a greater understanding with Japan and the
United States of America in all the problems of the Pacific, that
would be a great event and it would be a guarantee for the peace
of the world." In Toronto on Sept. 2nd Mr. Meighen told a large
audience that :
There may be some shades of misapprehension as to the position
taken by myself on the Anglo-Japanese Treaty question, but, generally,
the stand I took is well understood. Q sought to impress on behalf of
this country, not that the friendly relations with Japan should be broken
off, but that the problems sought to be taken care of by the instrument
of the Japanese Treaty should rather be placed on the table for dis-
cussion before all the nations chiefly concerned in their solution.J The
other nations chiefly concerned, besides Great Britain and Japan, were
undoubtedly the[United States and China.l
102 THE CANADIAN ANNUAL REVIEW
The above reference touched the keynote of
Canada and Canada's attitude at the Imperial Conference and
the Origin ^g influences which developed into President Hard-
Washington ins's cal1 *or a ?reat Peace gatherin£- The <iue.s-
Conferencc: tion of a limitation of armaments, of some definite
A 3rd Essay arrangement as to new Peace agreements, was in
in Foreign the a{r from the beginning of 1921. As early as
Affair*. jan 7 Genial §ir Arthur Currie stated to the press
in Montreal that this was the time for a move be-
yond the League of Nations: "The limitation of Naval arma-
ments has been proposed on both sides of the Atlantic almost
simultaneously; statesmen of high repute have advised their
countries to seek the adoption of this step; and the temper of
the general public in these countries is manifestly in favour of
its adoption." In the New York World of Jan. 5 Sir Vincent
Meredith, President of the Bank of Montreal, declared that
"there can be no question but that it is highly desirable that vast
expenditures on armaments should cease and all countries work
together to this end," while Sir Montagu Allan, President of the
Merchants Bank of Canada, advocated "the conclusion of an
agreement between Great Britain, the United States and Japan
with the object of stopping further capital expenditure." Such a
policy, while not preventing wars, would be a distinct step in the
direction of peace.
The outstanding advocates of something along this line had
been Lord Grey of Fallodon, and Elihu Root in the United States ;
many others had urged closer relations between Great Britain
and the United States ; President Wilson, at the Versailles Con-
gress of 1919, had pressed for a general international disarma-
ment. In a London despatch to the New York Tribune — an ex-
ceptionally reliable paper not given to sensational statements —
on July 8 it was stated, in connection with the Anglo-Japanese
Treaty and the proposed Pacific Conference of Great Britain,
United States, Japan and China, that the original proposal for
such a Conference had come from the Canadian Government
early in February, 1921 : "It was then suggested that the Do-
minion Government, through its Department of External Affairs,
be empowered to consult with Washington — to sound it out, so
to speak — on the possibility of a Pacific Conference." Grattan
O'Leary, already quoted as a journalistic correspondent in Lon-
don with the Canadian party, confirmed this statement in an
article written for Maclean's Magazine, Toronto (Sept., 1921) in
which he said : "The simple truth — and this can be substantiated
by official and ascertainable fact — is that as early as Feb. 14,
1921, the Meighen Government, acting through the Canadian De-
partment of External Affairs, believing that the Anglo- Japanese
Alliance ought not to be renewed, communicated its views to the
British Government, and suggested that the United States Gov-
CANADA AND THE ORIGIN OF THE WASHINGTON CONFERENCE 103
ernment be approached as to whether it would be willing to agree
to a Conference on Pacific affairs with Great Britain and Japan."
The attitude of the United States at this time was some-
what varied. It was building war-ships upon a large scale with
a programme which promised in a few years to run its fleets
ahead of Great Britain; the Senate on Feb. 8, with but one dis-
senting voice, had voted down Senator W. E. Borah's Resolution
to suspend the Naval programme for six months ; the same body
on Mch. 1st, by unanimous vote of 58 with no dissentients, at-
tached an amendment to the Naval Appropriations Bill urging
the President to call a Conference of the United States, Japan
and Great Britain to consider naval disarmament. The follow-
ing preliminary step was taken by Great Britain on May 6 of
this year when Mr. Lloyd George, as President of the Allied
Conference then sitting in London, sent a despatch to the U. S.
Secretary of State, through the British Ambassador, stating
that: "I am authorized, with the unanimous concurrence of all
the Powers here represented, to express to the United States
Government our feeling that the settlement of the international
difficulties in which the world is still involved would be material-
ly assisted by the co-operation of the United States and I am,
therefore, to enquire whether that Government is disposed to be
represented in the future, as it was at an earlier date, at Allied
Conferences, wherever they may meet, at the Ambassadors'
Conference, which sits at Paris, and on the Reparations Com-
mission." The response was prompt, with a cordial promise of
co-operation at all such meetings.
On May 25, by a vote of 74 with no opposition, the Senate
at Washington passed a Resolution stating that: "The Presi-
dent is authorized and requested to invite the Governments of
Great Britain and Japan to send representatives to a Conference,
which shall be charged with the duty of promptly entering into
an understanding or agreement by which the naval expenditures
and building programmes of each of said Governments, to wit,
the United States, Great Britain and Japan, shall be substantial-
ly reduced annually during the next five years." The House of
Representatives approved this Resolution on June 29 by a vote
of 330 to 4 as an amendment to the Naval Appropriation Bill of
$500,000,000, and the President signed the Bill with the Amend-
ment on July 15. Meantime, Japan was showing a most concilia-
tory policy and on Mch. 18 Viscount Ishii, Japanese Ambassador
to France, had stated to the press that : "Japan is ready to sup-
port any American suggestion aiming at securing peace to the
world and, to quote a specific instance, we should be glad to be
associated in any practical scheme which may be started in order
to promote general disarmament."
It was apparently left for the Imperial Conference in Lon-
don to bring the whole issue before the world, to concentrate
104 THE CANADIAN ANNUAL REVIEW
attention to the Pacific and to bring the four nations — Great
Britain, United States, Japan and China, with the British Do-
minions— into a state of mind where parleys and conferences be-
came possible. The proposed renewal of the Anglo- Japanese
Treaty helped materially in this development and, in the June
issue of the Fortnightly Review, Archibald Kurd, the naval writer,
raised a point which, later on, made a serious appeal to many
minds : "On two sides of the Pacific the United States and Japan
are feverishly building great fleets. The standard expenditure of
these two countries is higher than ever known to Europe. That
movement cannot fail to influence the British naval policy, since
the Pacific is evidently destined to be the cockpit of the world
in the immediate future. The British Empire is essentially an
Eastern empire, for two-thirds of its population overlooks the
Pacific ocean. But that two-thirds contributes at present little
towards the maintenance of naval forces on which its security
must depend." Early in the ensuing Conference — at the second
session on June 21 — General Smuts of South Africa made an im-
portant speech:
I do not advocate an alliance or any exclusive arrangement with
America. It would be undesirable; it would be impossible and unneces-
sary. The British Empire is not in need of exclusive allies. It emerged
from the War quite the greatest Power in the world, and it is only un-
wisdom and unsound policy that could rob it of that great position. It
does not want exclusive alliances.
Undoubtedly the scene has shifted away from Europe to the Far
East and to the Pacific. The problems of the Pacific are, to my mind, the
world problems of the next 50 years or more. In these problems we
are, as an Empire, very vitally interested. Three of the Dominions
border on the Pacific. There, too, are the United States and Japan and
China, x x x It is now for this Conference of ours to give the lead, and
guide the Powers concerned into a friendly conference or system of
conferences in regard to this great issue.
The discussions on this point, which followed, were close and
frequent during a period of weeks ; Mr. Meighen and the South
African Premier were alligned together from the first and
though the speeches were not made public, details of information
crept into the press and, especially, into the despatches sent to
Canada and the United States. The Canadian Gazette of July 7
described the views expressed by Mr. Meighen as follows : "It
is said that he pointed to the geographical position of Canada,
with her frontier marching with that of the United States, and
laid stress on the importance of this fact in relation to any policy
by which the United States might conceivably be, or might con-
sider itself to be, affected. He is further said to have emphasiz-
ed the advantages of international co-operation over special al-
liances, to have expressed a hope that the relations of nations
might come to be based on good will, and to have stated his be-
•D - -?*£ reat good would accrue from a Conference between the
British Empire, Japan and the United States ; and also to have
insisted on the great need of the world for disarmament."
CANADA AND THE ORIGIN OF THE WASHINGTON CONFERENCE 105
Meanwhile, the British Government was negotiating along
these lines and, in the House of Commons on July 11, Mr. Lloyd
George stated, as to this whole question, that the Imperial Cabi-
net* had been guided by three main considerations: (1) "That
in Japan we have an old and proved ally, and the Agreement be-
tween the two has been of great benefit, not only to ourselves,
but to the peace of the Far East; (2) that in China there is a
very numerous people with great potentialities, who esteem our
friendship highly, and whose interests we, on our side, desire to
assist and advance; (3) that in the United States we see to-day,
as we have always seen, the people closest to our own ideals,
with whom it is for us not merely a desire and interest, but a
deeply-rooted instinct, to consult and co-operate." On these
main considerations there was, he added, unanimous agreement
in the Imperial Conference. The object of the discussions was
to find a method of combining all the above factors in a policy
which would remove the danger of heavy Naval expenditure in
the Pacific, and all the evils which such an expenditure entailed,
and would ensure the development of all legitimate national in-
terests in the Far East.
Turning to the broader discussion of Far Eastern and Pacific
policy, the Prime Minister said that the Imperial Cabinet were
convinced that the first principle of such a policy was friendly
co-operation with the United States "Upon that, more than any
other single factor depends the peace and well-being of the
world." The greatest merit of the valuable friendship between
Great Britain and Japan was that it harmonized the influences
and activities of the two greatest Asiatic Powers and thus con-
stituted an essential safeguard to the well-being of the Empire
and the peace of the East. Another important point made was
that it was the desire of the British Empire to preserve the open
door in China and to give the Chinese people every opportunity
for peaceful progress and development, to safeguard Britain's
own vital interests in the Pacific and to preclude any competition
in naval armaments between the Pacific Powers :
All the representatives of the Empire agreed that our standpoint on
these questions should be communicated with complete frankness to the
United States, Japan, and China, with the object of securing an exchange
of views which might lead to more formal discussion and Conference.
The Foreign Secretary, accordingly, held conversations last week with
the American and Japanese Ambassadors and the Chinese Minister, at
which he communicated to them the views of the Imperial Cabinet, and
asked in turn for the views of their respective Governments. He ex-
pressed at these conversations a very strong hope that this exchange of
views might, if their Governments shared our desire in that respect, pave
the way for a Conference on the problems of the Pacific and the Far
East. The views of the President of the United States were made public
by the American Government this morning."
*Note.— The Conference was so termed in Parliament and in much of the British
press.
106 THE CANADIAN ANNUAL REVIEW
Japan, at this juncture, wanted a renewal of the Treaty.
The militaristic party was said in the United States and Cana-
dian press to be in power, but on July 8 M. Ozaki, a statesman of
eminence and ex-Minister of Justice, had completed a 10,000-mile
campaign in that Empire on behalf of limitation of armaments—
a campaign unparallelled in Japan's political history. He stated
in Tokio: "If the United States Government proposes an
International Conference to discuss restriction of armaments, it
will surely be the beginning of a solution of all the diplomatic
questions between Japan and the United States." Following the
British diplomatic efforts President Harding's official call for a
Conference at Washington was issued on July 10 and published
in London on the llth. On July 20 Sir Joseph Cook, Acting
Prime Minister of Australia, stated that : "The proposal to hold
this Conference developed from the consideration of the renewal
of the Treaty between Great Britain and Japan, it haying been
found that two other countries were vitally interested in it, and
that their representatives must be consulted." Mr. Hughes,
Prime Minister of Australia, declared in Parliament after his re-
turn (Sept. 30) that he had supported in the Imperial Confer-
ence a tripartite treaty to be substituted for the Anglo-
Japanese Treaty: "Before the negotiations with America and
Japan on the subject were concluded Mr. Harding's invitation
was received." From these facts it is obvious that the first
Government to propose a Pacific Peace Conference was that of
Canada; the first Legislature to urge such a Conference was
that of the United States ; the first Government to initiate nego-
tiations to this end was that of Great Britain.
Mr. Lloyd George, Lord Curzon and the Dominion Prime
Ministers volunteered to attend a preliminary meeting in Amer-
ica for a friendly interchange of views before the main Con-
ference. They felt that a discussion on Disarmament could
have more satisfactory results if a modus vivendi in the Pacific
was first reached. The Powers to be invited to this proposed
discussion were the United States, Japan, China, and the British
Empire. The desire and the plan was generally supported at the
Imperial gathering; Mr. Meighen remaining longer than was in-
tended in order to share in this hoped-for meeting. Both the
Premiers of Australia and New Zealand had to return home for
the meetings of their respective Parliaments and could not at-
tend the formal Washington Conference; Mr. Hughes put this
fact plainly before the American Club in London on July 22 and
urged the preliminary Conference very strongly. President
Harding and his advisers, however, objected to such a proceeding
though it was understood they would not oppose preliminary
diplomatic conversations touching the subject — in which Do-
minion representatives like Messrs. Hughes and Massey could
express their views ; the question of direct Dominion representa-
tion at the Conference did not develop at this stage. But the ob-
CANADA IN FOREIGN AFFAIRS — THE WASHINGTON CONFERENCE 107
jections of the United States prevailed and the final official Re-
port of the Imperial Conference stated on this point that :
The conclusion of the American Government was viewed with the ut-
most regret by the members. At no stage had it been suggested that the
results of such a consultation as was contemplated should either antici-
pate the work or tie the hands of the Washington Conference at a later
date. On the contrary, holding, as they do, the firm belief that without
a Pacific understanding the Conference on Disarmament will find it less
easy to attain the supreme results that are hoped for by all, the Imperial
Conference made the proposal before referred to, anxious to remove
every possible obstacle from the path of the Washington meeting.
Foreign
Affairs;
Policy of
the Nations
Concerned.
Whatever the precise origin of this great gath-
The Wa»h- ering — whether it was an inevitable outcome of
ington Con- worjd conditions and the precedent set at Versailles ;
Canada's whether the effort of the Ottawa Government in
4th Essay in February of this year was the technical starting
point; whether the Imperial Conference and Mr.
Meighen's insistent attitude as to the Japanese
Treaty and a Pacific Conference was the vital force
which flung the idea upon the map of world-
thought ; or whether it was the outcome of a grow-
ing and powerful popular sentiment in the United States, Great
Britain and the Dominions which President Harding seized up-
on and embodied in his invitation of July 10 — there could be no
doubt of its importance.
There, also, was no doubt of the imperative necessity for ac-
tion. According to the League of Nations Union in Great Britain,
the expenditure of the United States, Great Britain, France, Italy
and Japan, on armaments, before the War, was £243,00,000 and
after the War £1,203 ,000,000; a statement made by Sir L. Worth-
ington Evans, British Secretary for War, in Parliament early in
1921, showed that European armies, exclusive of Russia, still
totalled 3,333,367 men ; Washington semi-official statistics tele-
graphed to the press of Canada in November stated the military
strength of the five great Powers represented there at 2,206,300
mobilized men and 9,790,675 in reserves with 5,637,604 as the
mobilized forces of 27 other nations and Latin America, whilst
the latter group of many countries was supposed to have 15,500,-
941 men in reserve ; the Naval expenditures of the five great
Powers was estimated* for 1920-21 at $1,664,391,262— with the
United States total nearly double that of Britain. The London
Times correspondent at Washington (Oct. 23) gave the Naval
statistics of the three chief naval Powers as to (1) present fight-
ing strength and (2) total strength after completion of current
programmes — though it was impossible, without elaborate tech-
nical detail, to cover conditions of battle efficiency:
I. Great Britain, present strength 533 ships, aggregating 1,860,480
tons ; building 17 ships of 199,380 tons.
* Note. — Literary Digest, NDV. 12, 1921.
108 THE CANADIAN ANNUAL REVIEW
The United States, present strength 464 ships, aggregating 1,289,463
tons ; building 69 ships of 734,928 tons.
Japan, present strength 99 ships, aggregating 528,689 tons; building
85 ships of 805,188 tons.
II. Great Britain, 550 ships, aggregating 2,059,860 tons.
The United States, 533 ships, aggregating 2,024,391 tons.
Japan, 184 ships, aggregating 1,333,877 tons.
The origin of the Conference has been referred to ; its call-
ing was indirectly aided by many things besides the heavy press-
ure of armaments. American feeling against Japan was becom-
ing more acute with every passing year; the latter country's
sentiment was illustrated by Viscount Kato, Opposition leader
in that Empire, who told the New York Tribune correspondent
on Feb. 25 at Tokio that: "America locks the whole American
continent against us, but it considers itself privileged to inter-
fere in foreign questions in all parts of the world, especially in
the Far East ; it reserves the American continent to itself, while
American missionaries stir up trouble in Korea and the Ameri-
can Government interferes in China." Meantime, new and more
deadly methods of warfare were being planned and discussed —
the Americans (Chemical Warfare Service) had a poison gas so
strong that three drops would kill anyone whose skin it touched
and the British, according to Sir William Pope, President of the
vSociety of Chemical Warfare, had one which made the air abso-
lutely irrespirable. As to questions at issue between the coun-
tries directly concerned, Japan had claims and a partial occupa-
tion in Siberia, an unsettled control in Manchuria, a dispute with
China regarding the Great Wall of China as a boundary line,
practical domination in Mongolia, the award of Shantung by the
Paris Treaty and the annexed territory of Korea ; Great Britain
claimed a sphere of influence in the Yangtsi Valley of China and
France in the Southern Chinese provinces ; the United States
disputed the possession of the Island and Cable-station of Yap
with Japan.
The Calling of the Washington Conference. In the midst of
the negotiations started by Great Britain and the Imperial Con-
ference leaders as to a Pacific Conference, President Harding of
the United States on July 10 issued the following official state-
ment: "The President, in view of the far-reaching importance
of the question of limitation of armaments, has approached with
informal but definite enquiries the group of Powers heretofore
known as the Principal Allied and Associated Powers — that is,
Great Britain, France, Italy and Japan — to ascertain whether it
would be agreeable to them to take part in a Conference on this
subject to be held in Washington at a time to be mutually agreed
upon. If the proposal is found to be acceptable, formal invita-
tions for such a Conference will be issued. It is manifest that
the question of limitation of armaments has a close relation to
Pacific and Far Eastern problems, and the President has sug-
CANADA IN FOREIGN AFFAIRS — THE WASHINGTON CONFERENCE 109
gested that the Powers especially interested in these problems
should undertake, in connection with this Conference, the con-
sideration of all matters bearing upon their solution, with a view
to reaching a common understanding with respect to principles
and policies in the Far East." It was, at the same time, an-
nounced that the British Empire, France, Italy, Japan and China
had officially accepted the invitation — Japan, however, not in-
cluding the Far East reference in its reply. Later the Govern-
ments of Holland, Portugal and Belgium were included and ac-
cepted, while the U. S. State Department proceeded to prepare
an Agenda for consideration and sent it to the various Foreign
Offices concerned as being "essentially suggestive and subject to
amendments." It was as follows :
1. Limitation of Naval armaments, under which shall be discussed:
(a) Basis of limitation, (d) Rules for control of new
(b) Extent agencies of warfare
(c) Fulfilment (e) Limitation of Land arma-
ments.
Subjects:
(a) Territorial integrity; (b) Administrative integrity.
(c) Open door — Equality of commercial and industrial opportunities.
(d) Concessions — monoplies of preferential economic privileges.
(e) Development of Railways, including plans relating to Chinese
railways.
(f ) Preferential railway rates ; (g) Status of existing commitments.
2. Questions relating to Siberia ; 3. Mandated Islands.
In the British Parliament on July 11 the Prime Minister
made a careful statement as to the matter and first reviewed the
attitude of the Empire toward the Japanese Treaty and of the
Imperial Cabinet or Conference as to the proposed Pacific Con-
ference. As to the rest: "I welcome with utmost pleasure
President Harding's wise and cautious initiative. In saying this
I know that I speak for the Empire as a whole. The world has
been looking to the United States for such a lead. I am confident
that the House will esteem its act as far-seeing statesmanship
and whole-heartedly wish it success. Let me add only one word
as to the part played in these events by the Imperial Conference,
xxx We have taken counsel together without reserve, with
the result that is before us." To The Times on this date the
Prime Ministers of Canada, Australia and New Zealand sent im-
portant messages of congratulation. Mr. Meighen said:
It was with the greatest satisfaction that I learned of President
Harding's notable announcement. To a distracted world it offers a new
hope, a promise of relief from the uncertainties and apprehensions that
have clouded the future. Nowhere will it be welcomed more eagerly
than in Canada ; for it has been the unwavering belief of Canadians that
the issues involved in the question of armaments, as well as the closely
connected problems of the Pacific and the Far East, can be best settled
by full and frank consultation among the nations chiefly interested —
that is, by the method of free conference.
The invitation was wider than the Borah Resolution be-
cause it included Land armament ; it was wider than the Imperial
110 THE CANADIAN ANNUAL REVIEW
Conference proposals because it included other countries. Mr.
Hughes of Australia and Mr. Massey of New Zealand, however,
persisted in their desire for a preliminary Pacific Conference and
to this the Canadian Premier gave his support but on July 20
President Harding and the U. S. Secretary of State (Mr.
Hughes) announced their opposition to any change in the pro-
gramme. The proposal was, therefore, dropped and on Aug. 18
Mr. Lloyd George made the important statement in the Com-
mons that: "If the Alliance with Japan can be merged into a
greater understanding with Japan and the United States on all
the problems of the Pacific, that would be a great event, and it
would be a guarantee for the peace of the world." Until that
happened, however, Great Britain would stand by its agreements
and treaties. In that respect : "The British Empire must behave
like a gentleman."
Following these events and the President's tentative sug-
gestions of July 10 a formal invitation was, on Aug. 11, sent to
the Powers already specified in a despatch which pointed out the
tragic burdens and rivalries of armaments amongst great and
little nations alike; the difficulties of the current situation and
need of "a practical effort to remove causes of misunderstanding
and to seek ground for agreement as to principles and their ap-
plication." Mr. Harding then added : "There would seem to be
no ground to expect the halting of these increasing outlays un-
less the Powers most largely concerned find a satisfactory basis
for an agreement to effect their limitation. The time is believed
to be opportune for these Powers to approach this subject di-
rectly and in Conference ; and while, in the discussion of arma-
ment, the question of Naval armament may naturally have first
place, it has been thought best not to exclude questions pertain-
ing to other armament. It may also be found advisable to form-
ulate proposals by which, in the interests of immunity, the use of
new agencies of warfare may be suitably controlled. It is the
earnest wish of this Government that through an interchange of
views, with the facilities afforded by a Conference, it may be
possible to find a solution of Pacific and Far Eastern problems
of unquestioned importance at this time." China was invited in
special terms; the British Dominions were included in the
invitation to Great Britain. As eventually settled the Delegates
to the Conference were as follows :
United States Charles E. Hughes Secretary of State
Hon. Elihu Root Ex-Secretary of State
Henry Cabot Lodge Republican Leader in the Senate
Oscar W. Underwood Democratic Leader in the Senate
Bntish Empire. ...*Rt. Hon. A. J. Balfour Lord President of the Council
Lord Lee of Fareham First Lord of the Admiralty
Rt. Hon. Sir R. L. Borden Ex-Prime Minister of Canada
Rt. Hon. V. S. Srinivasa Sastri Vice-Regal Council of India
Senator George F. Pearce Australian Minister of Defence
Sir J. W. Salmond Supreme Court of New Zealand
*rance Aristide Briand Prime Minister of France
Jules Jusserand French Ambassador at Washington
*Note.— Mr. Balfour also represented South Africa.
CANADA IN FOREIGN AFFAIRS — THE WASHINGTON CONFERENCE 1 1 1
France Ren£ Viviani Ex-Prime Minister of France
Albert Sarrant Minister of Colonies
Portugal Senhor de Vasconcellos Member of Government
Belgium. Cartier de Marchienne Ambassador at Washington
Holland Joukheer H. A. Van Karnabeek Dutch Foreign Minister
Italy Carlo Schanzer. Ex-Minister of Finance
Filippo Medo Leader of the Catholic Party
Senator Luigi Albertini Editor of Corriere de la Sira
Senator Rolandi Ricci Ambassador to Washington
Japan Tomosaburo Kato Minister of Marine
Prince Tokugawa President of the House of Peers
Kijuro Shidehara Ambassador at Washington
Masanao Hanihara Vice-Minister of Foreign Affairs
China Dr. S. Alfred Sze Minister at Washington
V. R. Wellington Coo Minister to Great Britiain
C. C. Wu South China Government
Wang Chung-hui Chief Justice of Supreme Court
Sir Auckland Geddes, British Ambassador at Washington,
was to act as a Delegate in the absence of the British Prime
Minister or any other British Delegate. The Delegations of the
Powers were accompanied by a large number of advisers —
political, naval, military, etc. Asssitant Secretary of the Navy
Theodore Roosevelt and Admiral Robert E. Coontz, Chief of
Naval Operations, were among the naval advisors to the Ameri-
can Delegation ; Marshal Ferdinand Foch advised the Delegation
from France ; Admiral of the Fleet Earl Beatty was senior
Naval expert of the British Delegation; General the Earl of
Cavan was chief of the British Military Delegation. By the
time the Conference opened subjects for discussion had greatly
increased and included the Territorial integrity of China, the
open door in that country of confusions, the regulation of spheres
of influence and stabilization of Chinese conditions, policy of the
Powers in Eastern Siberia, the Japanese possession of part of
the Island of Sakhatui, the matter of Chinese and Japanese emi-
gration, the fortification or dismantling of American and Japan-
ese outposts in the Pacific.
The United States Policy and Programme. The most inter-
esting and striking event of the Conference and one of the most
important of the whole year — to the British Empire and to
Canada more, perhaps, than to any other Power or group of
Nations — was the address of the U. S. Secretary of State after
the opening ceremonies on Nov. 12. The Conference was held
in the Continental Memorial Hall not far from the White House ;
the gallaries were filled with everybody who was eminent in the
administrative, political, diplomatic, social, judicial and general
life of the Capital ; the President of the United States was in the
chair and delivered a brief speech of welcome and then retired.
Mr. Harding's address emphasized the words "simplicity,
honesty, honour," as the basis of American policy in this Con-
ference, and it included some very forceful paragraphs of which
the following is typical: "Out of the cataclysm of the World
War came new fellowships, new convictions, new aspirations. It
is ours to make the most of them. A world staggering with debt
needs its burden lifted. Humanity, which has been shocked by
wanton destruction, would minimize the agencies of that de-
1 12 THE CANADIAN ANNUAL REVIEW
struction. Contemplating the measureless cost of war and the
continuing burden of armament, all thoughtful peoples wish for
real limitation of armament and would like war outlawed. In
soberest reflection the world's hundreds of millions, who pay in
peace and die in war, wish their statesmen to turn the expendi-
tures for destruction into means of construction, aimed at a
higher state for those who live and follow after." Mr. Secretary
Hughes then took the chair, announced that French and English
would be the official languages of the Conference and, on motion
of Mr. Balfour, became permanent Chairman of the gathering.
Instead of proposing an expected adjournment he made the
speech which sprang upon the world a fresh note of forceful
peace, of resolute statecraft, of prepared and explicit policy.
There was, of course, a general exposition of previous Peace
efforts, of War conditions and the present situation. Then came
the announcement which turned the galleries and audience into
a most undiplomatic uproar of enthusiasm and caused tre-
mendous though unexpressed astonishment amongst the as-
sembled diplomats :
The question, in relation to armaments, which may be regarded as of
primary importance at this time, and with which we can deal most
promptly and effectively, is the limitation of Naval armament. The core
of the difficulty is to be found in the competition in Naval programmes,
and that, in order appropriately to limit Naval armament, competition in
its production must be abandoned. Competition will not be remedied by
resolves with respect to the method of its continuance. One programme
inevitably leads to another, and if competition continues, its regulation
is impracticable. There is only one adequate way out and that is to end
it now.
It would seem to be a vital part of a plan for the limitation of arma-
ment that there should be a Naval holiday. It is proposed that for a
period of not less than 10 years there should be no further construction
of capital ships. I am happy to say that I am at liberty to go beyond
these general propositions and, on behalf of the American delegation
acting under the instructions of the President of the United States, to
submit to you a concrete proposition for an agreement for the limitation
of Naval armament. It should be added that this proposal concerns the
British Empire, Japan and the United States. Four general principles
have been applied :
1. That all capital shipbuilding programmes, either actual or pro-
jected, should be abandoned.
2. That further reduction should be made through the scrapping of
certain of the older ships.
3. That, in general, regard should be had to the existing Naval
strength of the Powers concerned.
4. That the capital ship tonnage should be used as the measurement
of strength for Navies and a proportionate allowance of auxiliary com-
batant craft prescribed.
The United States proposes : (1) To scrap all capital ships now under
construction. This includes six battle cruisers and seven battleships on
/5f ™ays and in the course of building, and two battleships launched.
(2) To scrap all of the older battleships up to but not including the
Delaware and North Dakota. The number of these old battleships to be
scrapped is 15.
It is proposed that Great Britain : (1) Shall stop further construction
of the four new Hoods, the new capital ships not laid down, but upon
P
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CANADA IN FOREIGN AFFAIRS — THE WASHINGTON CONFERENCE 1 13
which money has been spent. (2) Shall, in addition, scrap her pre-
Dreadnoughts, second line battleships and first line battleships, up to
but not including the King George V class.
It is proposed that Japan: (1) Shall abandon her programme of ships
not yet laid down. (2) Shall scrap three capital ships and four battle
cruisers in course of building, and the Atoga and Takao, not yet laid down,
but for which certain material has been assembled. (3) Shall scrap all
pre-Dreadnoughts and battleships of the second line.
The total tonnage involved in these proposals was 1,878,043
with 70 capital fighting ships built and building to be scrapped —
the figures by nations being 23 ships of 583,375 tons for Great
Britain, 30 ships of 845,740 tons for the United States and 17
ships (with 6 more not yet begun) of 448,928 tons for Japan.
Other proposals of a technical character were outlined together
with restrictive plans for replacement under which there would
be an agreed maximum of capital ship replacement at the end of
ten years totalling 500,000 tons each for Great Britain and the
United States and 300,000 tons for Japan; there was, also, pro-
vision for limitation of auxiliary surface combatant craft. The
speech closed quickly but the Galleries demanded speeches from
Italy, China and Japan and they had them. When the Confer-
ence met again on Nov. 15 the British Empire, Japan, France and
Italy announced their decision to adopt the American proposals
in principle and to study the details in Committee so as to pre-
pare a practicable settlement.
British Policy and Action. Mr. Balfour in personal prestige,
magnetism and diplomatic ability, dominated many phases of
the Conference ; the British viewpoint, though not the most sen-
sational or most discussed, was, perhaps, the most important at
the gathering. The British Empire still was the dominant sea-
power of the world ; its Pacific interests were much the greatest
of the ocean-bordering Powers ; its Oriental interests in all
aspects of co-ordinated strength were the largest of all the na-
tions— East or West. As General Lord Home put it at this time
(London, June 11, 1921) : "The British Empire began with the
Navy. It rose from the sea and .lives by the sea and if it dies, it
will die by the sea."
As a former Prime Minister of Great Britain and head of
the British Delegation, Mr. Balfour did the tactful thing, which
was to him so often the instinctive one, in crossing on the
C. P. O. S. Empress of France to Quebec where he landed on Nov.
8 and gave an interview in carefully worded and concise phrases
which emphasized in every line the import of the coming gather-
ing: "I do not believe this Conference can do everything. lam
firmly convinced that it can do much. And I am absolutely con-
fident that of all the steps that are now, I hope, being gradually
made towards a better and improved international world, the
step this Conference will take will prove to be, of all history, one
of the greatest. With that hope I go to Washington." A per-
sonal tribute to Sir Robert Borden as one of the British Empire
5
114 THE CANADIAN ANNUAL REVIEW
Delegation, and to his "long and ripe experience" followed. To
Canadians Mr. Balfour said : "I am sure no body of men will re-
joice more at such a result than my countrymen of Canada. All
our interests are bound up in the problem of the Pacific — one of
the great problems, the greatest problem with which the Dis-
armament Conference will have to deal. In this problem Canada
is immediately interested, because it finds itself abutting on the
Pacific, and is therefore deeply concerned in all the questions
that affect Pacific power." At the Conference itself, where Mr.
Balfour spoke for the British Empire on Nov. 15, and following
the impressive pronouncement of Mr. Hughes, he made this
pregnant statement :
The British Empire and Great Britain are more profoundly concern-
ed in all that touches Naval matters than any other country — and this
not for any reasons of ambition, but from hard brutal necessities and
obvious facts. There never has been in the history of the world an Em-
pire so constituted as the British Empire.
Supposing your Western States were suddenly removed 10,000 miles
across the sea; that the very heart of this great State was a small and
crowded island dependent upon overseas communications not merely for
its trade, but for the food upon which it subsists; supposing it was a
familiar thought among you that at no moment in the year was there
more than seven weeks' food supply; then you would understand why
every citizen of the British Empire, in the Dominions, or at home, never
can forget that it is by sea communications that we live, and that with-
out them we should cease to exist, x x x We have considered the great
scheme laid before us by our Chairman. We have considered it with
admiration and approval. We agree with it in spirit and in principle.
We think that the proportion between the various Navies is acceptable,
that the limitation of the amounts is reasonable, and that it should be
accepted.
During the ensuing weeks of continuous negotiation,
anxious discussion and careful consideration of detailed condi-
tions and statements furnished by the greatest Naval experts in
the world — from varied countries and often diverse points of
view— Great Britain was behind the United States delegation in
an effort to smooth the diplomatic path and co-ordinate the con-
flicting points of view. Especially potent was Mr. Balfour's at-
titude with the Japanese delegation and regarding the issues
which confronted them at home as well as in Washington. Great
Britain was the acknowledged friend of Japan and her influence
went far in paving the way for the final compact of the Pacific
nations— one which broke the diplomatic isolation of the United
States, eliminated the suspicious sentiments of Japan, solved the
problems of the Japanese-British Treaty and wove a further
>ond of friendship between Britain and the United States.
One of the subsidiary issues in which the British delegation
was most concerned was that of Submarines. The United States
proposals as to limiting auxiliary craft included a suggested al-
lowance of 90,000 Submarine tonnage to Great Britain, 90,000 to
the United States, and 54,000 to Japan. According to a state-
CANADA IN FOREIGN AFFAIRS — THE WASHINGTON CONFERENCE 1 1 5
ment submitted by Lord Lee of Fareham (Dec. 22) the existing
Submarine tonnage of the Powers concerned was as follows:
United States, 83,500; Great Britain, 80,500; Japan, 32,200;
France, 28,360, and Italy, 18,250. He contended, in an able
speech, that the Submarine was ineffective as a weapon in legiti-
mate Naval warfare and that the British Grand Fleet had been
hardly affected by the German U-boat campaign; that 15,000,000
British troops had crossed and recrossed the English Channel in
safety while 2,000,000 American troops were brought across the
Atlantic ; that, however, the German Submarines had sunk 12,-
000,000 tons of mercantile shipping, valued at $1,100,000,000, in
defiance of all law human and Divine. Both he and Mr. Balfour
earnestly contended that Submarines should be abolished entire-
ly. They declared that Great Britain was ready to scrap her
whole Submarine navy — the largest and most efficient in the
world — if the other Powers would do the same.
Mr. Hughes, in presenting the American case, amended
Lord Lee's figures as to the number of Submarines in detail,
though not in effect ; the French Delegation approved the use of
the Submarine under certain restrictions as did the Italians ;
Mr. Hughes claimed in turn that all were agreed that the illegal
use of the Submarine could not be tolerated. Reports and argu-
ments defended the Submarine as a defensive weapon against
a Power with a great Navy and as an instrument for use by
weak naval nations ; the United States, it was argued, needed a
large force of this kind to protect its outlying possessions and
interests. France and Britain took sharp issue on this subject
and Mr. Balfour (Dec. 23) said: "Is there any man who knows
what occurred in the late War, is there any man who knows
what must occur in the course of any future war, who doubts
that if submarines are sent on their dangerous and difficult mis-
sion on the high seas — it is for something more important than
the remote chance of destroying some well-guarded and efficient
ship of war — and that if they are once let loose to deal with mer-
chantmen it is incredible that in the stress of war their powers
will not be abused in the future as they have been so grossly
abused in the past?" The destruction of commerce was their
aim and end.
Finally, a compromise reduction was discussed but Japan,
France and Italy refused to accede ; the only result outside of
the original American figures and plan was the placing upon
record by Mr. Balfour of the views of the entire British Empire
Delegation that the "use of submarines, while of small value for
defensive purposes, leads inevitably to acts which are incon-
sistent with the laws of war and the dictates of humanity, and
the Delegation desires that united action should be taken by all
nations to forbid their maintenance, construction or employ-
ment." France had killed the possibility of Submarine reduction
116 THE CANADIAN ANNUAL REVIEW
or abolition. On Dec. 28 Mr. Elihu Root presented the Resolu-
tions denning and condemning the illegal use of Submarines and
these were eventually passed. Here again the French and Brit-
ish clashed in argument and speech ; while M. Stephane Lausanne
and other French correspondents wrote pungent articles criti-
cizing Britain, H. G. Wells and others fiercely attacked France ;
though Britain was willing to lower her Naval supremacy if not
abolish it, France, it was charged, would neither reduce her Sub-
marine forces nor her military armament. The eloquent plea
of M. Briand in this latter connection, however, had a tremen-
dous effect upon the Conference.
Canada and the Dominions at Washington. Great Britain
and the United States, in days when Canada was but a tiny strip
of occupied and organized territory along the northern border of
the Republic, had set an example in the disarmament of the
Great Lakes which might well have been copied during the cen-
tury which followed the limitation of armed shipping in the
Rush-Bagot agreement of 1818. In 1921 Britain, Canada and the
United States were again associated in a wider and greater effort
at naval disarmament ; the sphere being the Pacific ocean instead
of the Great Lakes of North America. Speaking at New York
on Nov. 4 Sir Robert Borden eulogized this practically unbroken
Peace arrangement of a century and the important International
Joint Commission organized in 1909 which also "expressed the
cardinal and controlling principle of determining international
questions by arbitrament of a permanent tribunal."
There was some question raised at the outset as to the
proper form of representation of the Dominions at the Confer-
ence. Separate representation was sought but there were diffi-
culties in the way. Primarily it was a Conference of Pacific
Powers and South Africat was not directly interested in the
Pacific; diplomatically and internationally, there was a British
Empire but no independent Dominions recognized as separate
nations; the so-called Versailles precedent was hardly effective
as invitations to that gathering had gone through the British
Government as a result of vigorous British pressure upon the
Powers and not from the Powers direct. On Oct. 7 it was an-
nounced that there would be six British Empire delegates and
that Great Britain would divide the representation with the three
British countries concerned in the Pacific — Australia, India and
Canada. Mr. Lloyd George cabled the Premier of Australia
urging him to be one ; General Smuts stated at Pretoria on Oct.
23 that South Africa did not expect an invitation and that the
United^States attitude was "a direct challenge to Dominion
Status." Finally, and no doubt under British pressure, the Em-
pire Delegation was increased to seven with New Zealand and
South Africa also represented and Sir Auckland Geddes acting
in place of the British Prime Minister.
CANADA IN FOREIGN AFFAIRS — THE WASHINGTON CONFERENCE 1 1 7
The Canadian party, including Sir R. L. Borden, who was
accompanied by Lady Borden, and A. W. Merriman of the De-
partment of External Affairs, Ottawa, arrived in Washington
on Nov. 5, preceded by L. C. Christie, of the same Department;
Senator Pearce and Sir John Salmond from Australia and New
Zealand arrived at Victoria on the 6th and a few days later
reached the American capital. The Canadian delegation was
housed in the same hotel as the British and Sir Robert was in
continuous touch with the latter and with the Government at
Ottawa. According to one correspondent — J. A. Stevenson —
the Canadian delegate was, after Mr. Balfour, the most import-
ant member of the British delegation.
Immediately after the proposals of the United States for
the reduction of Naval armaments were made by Mr. Hughes
(Nov. 12) the subject was taken into consideration by the Brit-
ish Empire Delegation. Sir Robert Borden strongly urged that
the American proposals should be accepted in spirit and in
principle. He also expressed his conviction that there should
be a provision for periodical Conferences in order that the pro-
posals put forward by Mr. Hughes might be effectively invested
with continuity and permanence. Further he urged that an
effort should be made to induce the Government of the United
States to consider the paramount importance of associating that
country in effective co-operation for the peaceful determination
of international disputes. This he regarded as vital since the
United States was not a member of the League of Nations and
did not recognize the Permanent Court of International Justice,
nor the means by which the jurisdiction of that tribunal could be
invoked. According to press despatches he submitted a care-
fully prepared Memorandum along these lines. On Nov. 18 Sir
Robert represented the British Delegation at a meeting with the
newspaper representatives of the world who were in attendance
and went through the ordeal, it was said, with flying colours as
one accustomed to the American type of interview. He de-
scribed many of the questions which had arisen between Canada
and the Republic, and one correspondent referred to him as "a
sort of walking Canadian encyclopaedia." It was on this date
that the Rush-Bagot agreement and the Canadian-American
Joint Commission were brought before the Conference as illu-
strations of profitable Peace conservation.
Canada's representative was opposed to any Japanese Treaty
which affected American feeling toward Great Britain, but he
did not unduly press his point on this occasion ; he supported
Britain on the subject of Submarines and, indeed, the Empire
delegation was, in the main, a unit upon the chief issues before
the Conference. Sir Robert was appointed the British Empire
representative on a Committee to deal with proposed reforms in
the Chinese fiscal system to meet current international condi-
118 THE CANADIAN ANNUAL REVIEW
tions. For the numerous loans made to China Customs duties
had been a favourite form of security ; the proceeds of the Salt
duty, for instance, would be allocated to one group of borrowers
and of the Cloth duty to another. The administration of the
Customs was controlled by the lenders and the leading positions
in the Administration were thus held by Europeans. The Chinese
wanted to raise their duties to an average of l2l/2 per cent.;
British interests, of course, lay in keeping them as low as pos-
sible. Later on Sir Robert drafted the final Report of this Com-
mittee and upon this work and the ensuing arrangements de-
pended much of Eastern economic stability in the future, much
of Chinese political integrity, and the solution of the Railway
construction problem. Meanwhile, Senator G. F. Pearce of Aus-
tralia represented the Empire on the Extra-Territoriality of
China Committee.
It was stated by special correspondents of the Canadian
press that during this period a flood of telegrams and letters
were received at the Canadian delegation's headquarters; they
contained resolutions endorsing the objects of the Conference
and pledging support to the Canadian delegate, or they offered
advice and suggestions as to what the Conference should under-
take. These messages came from Women's Institutes, from the
Inter-Church Advisory Council, from the Ministerial Associa-
tions and various Church Societies, from W. C. T. U. branches,
I. O. D. E. Chapters, Orange and Masonic lodges, Business
Women's Clubs, Kiwanis and other organizations. Opinion in
the Dominions was strongly favourable to disarmament and
Peace proposals of a varied nature. Mr. Hughes at Melbourne
declared that the proposals of Mr. Hughes at Washington were
practical and the outlook hopeful; Mr. Massey at Wellington
thought they meant peace for the Pacific ; the Cape Town Times
stated that Britain had deliberately abstained from anything in
the nature of competitive building and would go to the Confer-
ence with clean hands to urge the principle of disarmament as
necessary for the salvation of the world; the Melbourne Argus,
the Sydney Herald, the Brisbane Daily Mail, the Wellington
Dominion, were all hopeful of results and anxious for definite
action.
At Washington on Dec. 1st Mr. Balfour was quoted as say-
ing that, in the negotiations : "Canada and her sister Dominions
have been of the greatest possible assistance. From the very
beginning of the proceedings they have worked in complete ac-
cord. With the delegates from the Mother Country they have
been of mutual assistance and advice, and have worked together
to bring about a settlement of the different problems with which
they have been faced." On the llth Sir Robert Borden issued a
statement declaring that: "Four great nations have solemnly
agreed that every controversy between any of them arising out
CANADA IN FOREIGN AFFAIRS — THE WASHINGTON CONFERENCE 119
of a Pacific question and capable of settlement by diplomatic
methods shall be brought to a joint Conference of all four
Powers, and shall be there considered and adjusted. The pur-
pose is to create the custom and establish the practice of Con-
ferences for peaceful settlement of International differences."
On the 29th the Canadian Delegate spoke strongly to the Con-
ference in support of the Root Resolution as to restricting the
use of the Submarine ; he had stood with the rest of the Empire
group in favour of its total abolition.
Conference Delegates Visit Canada. The first of these
notable visitors to Canada was Admiral of the Fleet, Earl Beatty,
G.C.B., O.M., G.C.V.O., D.S.O. He had received many honours and
compliments in the United States; he was welcomed in Canada
as the chief of British Naval heroes and as one of its own. At
Ottawa on Nov. 26 he addressed a brilliant gathering of the
Canadian Club with G. J. Desbarats in the chair. After a refer-
ence to the difficult task of keeping the seas safe for men and
munitions passing to the front, Lord Beatty said: "We don't
claim in the British Navy that we won the War. But we do
claim that we made victory possible. Without the British Navy
the heart of the British Empire would have starved in six weeks.
In 42 days the British Empire would have been conquered for
lack of food and supplies which came from over the seas. With-
out the British Navy, those gallant armies from England, from
Canada ,from Australia, from India would not have reached the
battle-fields." As to the Conference, "on Naval questions all
goes well," he said : "If the Conference were to close its doors
to-morrow it would have accomplished something toward re-
leasing the world from the great burden of armaments and the
taxation it involves."
In the afternoon he was welcomed by the G. W. V. A. of
Ottawa. At Montreal on the 27th the Admiral had a quiet yet
busy Sunday under the official aegis of the Dominion Govern-
ment. He attended Christ Church Cathedral in the morning
and lunched at noon with the Canadian Club, toured the city in
the afternoon and attended a private dinner by Hon. C. C. Ballan-
tyne at the Mount Royal Club in the evening. In Toronto on
the 28th he held an informal Reception at the City Hall, lunched
with the Canadian Club and attended a meeting in Massey Hall
under the auspices of the Navy League of Canada, visited
Christie Street Hospital and Hart House. To the Canadian Club
Lord Beatty said : "I believe that the feeling and spirit which is
being shown in carrying out the Conference to-day is a sure in-
dication that, whatever comes out of it, there will be a binding
together of the English-speaking nations of the world." To the
Navy League, whose Ontario Branch President, Sam Harris, pre-
sided, he spoke with emphasis : "You have recognized that com-
munication between different parts of the Empire is by sea, and
120 THE CANADIAN ANNUAL REVIEW
therefore it is essential— indeed it is absolutely necessary—that
the command of the sea should be held to enable the British Em-
pire to exist as an Empire."
Marshal Ferdinand Foch, the great commander of the great-
est combination of armies the world had ever seen, was received
at Ottawa on Dec. 11 with every token of official respect and
popular regard. He attended the Basilica service in the morning,
accepted a Reception given by the Canadian Club and Alliance
Francaise, received the Hon. degree of LL.D. from Ottawa Uni-
versity, and visited the G. W. V. A. Club. At Montreal on Mon-
day the Marshal was given a great reception with rounds of
cheers from throngs of people as he drove in semi-state through
the city or passed from one place to another. He accepted an
Hon. degree from the University of Montreal and inaugurated
the French Commercial Exhibition at the Ecole des Hautes
Etudes Commerciales ; attended a reception by the French Con-
sul and the French Colony in the Armouries, another reception
by the Canadian Club in His Majesty's Theatre, and a third by
the Alliance Francaise in Windsor Hall; listened to many ad-
dresses of welcome and spoke briefly at each stopping place.
Then he dined with the G. O. C. and officers of Military District
No. 4 at the St. James's Club, and left for Quebec by special
train at 11 p.m.
In his addresses the pivotal point was that while the unity
of command on the Western Front was credited with having
been the means to victory, that unity would have been unavail-
ing had there not been behind it solid unity of purpose and that
an equally strong feeling of unity was still necessary, in order
that efforts in peace might be as fruitful in success as were the
joint efforts in war. At the Canadian Club, Col. A. A. Magee pre-
sided and Sir Arthur Currie spoke as to the personality and ser-
vices of their guest at some length ; Marshal Foch, in reply, first
declared that when action was needed "we always found re-
serves, a storage of energy, in certain troops, certain corps, and
in the first rank of these I place the Canadian corps." To the
Alliance Francaise he said : "Alliance — yes we shall have victory
in peace as we had it in war, by remaining allied. I salute here
that force which results from union, and which is consecrated in
this country of the British and French flags, the land of the
French-Canadian." Everywhere the Marshal spoke briefly and
to the point, but it was response to personal welcomes and
tributes ; practically no reference was made to the Conference.
Lack of time and, perhaps, the personal weariness of an old and
greatly-worn soldier prevented acceptance of the Toronto and
other invitations.
More to the point as to Conference issues was the visit of
General the Earl of Cavan, K.P., G.C.M.G., K.C.B., Commander of the
British Forces in Italy at the critical juncture of the War, head
CANADA IN FOREIGN AFFAIRS — THE WASHINGTON CONFERENCE 121
of the British military mission at the Conference and destined a
little later to be appointed to the highest military position in
England. Lord Cavan was in Toronto on Dec. 19 and addressed
a luncheon of the Canadian Club with J. M. Macdonnell in the
chair and a joint dinner of the Empire and Young Men's Cana-
dian Clubs with Brig.-Gen. C. H. Mitchell, C.B., C.M.G., D.S.O., pre-
siding. At the former function he declared that "the Conference
at Washington had accomplished something of vast importance
regarding the Pacific area, for it "insured peace for at least ten
years over one-third of the globe." At the latter the speaker
referred first to the vast Imperial responsibilities of England and
of the Empire's Foreign policy. Then he dealt with the Confer-
ence: "It is tremendously genuine, this business. Do you
realize that three of the greatest Powers are going to give up
possessions in China ; France surrenders Kiao-Chao, Great Brit-
ain Wei-hei-Wei, and Japan Shantung. Two things stick right
out of the Conference: First the honesty of purpose of the
Powers, and, secondly, the determination to achieve. In spite of
rumours, the Conference, both in committees and public meet-
ings, has been characterized by the most astounding frankness
on the part of all the nations ; all the cards were put on the
table." A brief visit, also, was made to Montreal.
A non-official visitor and one associated with some curious
incidents of the year was Henry Wickham Steed, Editor of the
London Times, who addressed the Canadian Club of Montreal
(Dec. 27) and of Toronto (Dec. 28) on the Conference and the
Empire. On the former occasion he described Mr. Balfour as the
outstanding man of the Conference and its success as "stupend-
ous"; stated that Canada was "the fulcrum on which the great
turn came in British policy" — meaning, no doubt, the attitude of
the Dominion as to the Japanese Treaty. He added the state-
ment that four months before the Washington Conference the
British Government told the American Government that if they,
in their scheme for the limitation of naval armaments, counted
upon equality, Britain would make no difficulty. In Toronto he
described the possibility of an American- Japanese war as chief-
ly a British issue because of Canada's geographical position ; de-
clared that Mr. Meighen at the Imperial Conference had been
sensible of the danger, had advised against the renewal of the
Anglo- Japanese pact and by that advice had greatly served
Canada and the Empire. The American Delegation at Washing-
ton had "played the game" in every respect, even to the extent
of insisting that press notices should be given out to the Ameri-
can papers, only through Lord Riddell, the British press agent!
The Results of the Conference. Though the meeting ran on
into January, 1922, its main issues were settled at the close of
the year. The great central question was focussed into a Treaty
and signed by the 4 great Powers on Dec. 13, 1921 — the United
122 THE CANADIAN ANNUAL REVIEW
States, the British Empire, France, and Japan. Under this agree-
ment the four Powers mentioned, "with a view to the preserva-
tion of the general peace and the maintenance of their rights in
relation to their insular possessions and insular dominions in the
regions of the Pacific Ocean," decided and agreed (1) that if a
dispute should arise out of any Pacific question and not be set-
tled by diplomacy, a joint Conference should be held to which
the whole subject will be referred for consideration and adjust-
ment"; (2) that if the rights of any of these Powers in Pacific
regions should be threatened by any other Power, council would
be taken "fully and frankly" as to the most efficient measures to
be taken, jointly or separately, to meet the exigencies of the
particular situation; (3) that the term of this Treaty should be
for 10 years from date of coming into operation and continue
thereafter subject to 12 months' notice by any one of the high
contracting parties ; (4) that upon the deposit of ratification at
Washington the agreement between Great Britain and Japan,
which was concluded at London on July 13, 1911, should term-
inate.
The Treaty was signed by the American Delegates on behalf
of the President of the United States of America ; by the British
Empire Delegates on behalf of "His Majesty the King of the
United Kingdom of Great Britain and Ireland and the Dominions
beyond the Seas, Emperor of India — and for the Dominion of
Canada, for the Commonwealth of Australia, for the Dominion
of New Zealand, for India"; by the French Delegate on behalf
of the President of the French Republic, and by the Japanese on
behalf of His Majesty the Emperor of Japan. Mr. Balfour, Sir
Auckland Geddes, and Lord Lee of Fareham signed for Great
Britain, Sir Robert Borden for Canada, Senator Pearce for Aus-
tralia, and Sir John Salmond for New Zealand. Mr. Secretary
Hughes, Senators Lodge and Underwood and Mr. Root signed
for the United States.
In his address to the Conference announcing acceptance of
the Treaty, on Dec. 10, Senator Lodge described it as removing
some of the causes of war and as "a great experiment" resting
upon the will and honour of those who signed it ; Mr. Balfour —
who was at the head of the Government which negotiated the
first Japanese Treaty and arranged the Entente Cordiale between
Great Britain and France — paid tribute to the Anglo- Japanese
Treaty as having served "a great purpose in two great wars5'
and, for 20 years, "stood the strain of common sacrifices, com-
mon anxieties, common efforts, common triumphs." Rene Vi-
viani accepted for France in a speech of pathos and hope. As to
the new Treaty there was no promise of force in it ; there was
abundance of co-operative action pledged. It removed causes of
friction and did not apparently create any ; it was not an alliance,
t was merely an understanding along lines of peace and har-
mony; it, however, did bring the United States into a formal
CANADA IN FOREIGN AFFAIRS — THE WASHINGTON CONFERENCE 123
recognition of common obligations entailed by common interna-
tional action. The United States, however, had a Reservation
which expressed non-assent to the terms of the Versailles Treaty
in respect to Mandated Islands in the Pacific and retained the
liberty to make arrangements with the Powers concerned as to
these Islands. Other results of the Conference were as follows :
1. An agreement to limit Naval armament — the acceptance by the
United States, the British Empire and Japan of the 5-5-3 ratio, whereby
1,775,000 tons of warships would be scrapped by the United States, Britain
and Japan.
2. Acceptance of general principles to be followed toward China as
follows : (a) to respect its sovereignty, independence and territorial and
administrative integrity; (b) to give China every opportunity to develop
and maintain for herself an effective and stable government; (c) to es-
tablish and maintain equality of commercial opportunity for all nations
throughout the territory of China ; (d) to refrain from taking advantage
of the present situation in order to seek special rights or privileges which
would abridge the rights of the subjects or citizens of friendly States
and from countenancing action inimicable to the security of certain
States ; (e) not to enter into any arrangements with each other or with
other Powers which would infringe or impair the foregoing principles.
3. Assent of the Powers to the principle that the rights of China as
a neutral should be fully protected in case of a war in which China did
not take part.
4. Agreement of eight Powers to appoint a Commission to report
on the question of extra-territoriality and the present judicial system
in China with a view to preparing the way for the ultimate abolition of
this principle.
5. The institution of direct negotiations between China and Japan
as to the settlement of the Shantung question ; the expressed willingness
of Great Britain to relinquish her Naval base at Wei-hai-Wei and of
France to surrender its leasehold in Kwantung; the settlement of the
Yap controversy by Japan retaining political control of the Island, with
American cable rights for the Yap-Guam line and assuring potential
rights for a Radio station with engagements that the Island would not be
fortified.
6. Recognition of Japan's mandatory rights over the former German
islands north of the equator, with the specific understanding that these
islands should not be used as military or naval bases, nor fortifications
erected upon them.
7. Agreement as to limit on Aircraft Navy carriers to 135,000 tons
for Great Britain and for the United States, 81,000 for Japan, 60,000 for
France and 54,000 for Italy.
8. Approving the prohibition of use in war of asphyxiating, poison-
ous Or other gases and all analogous liquids or materials or devices.
9. Permission to China to increase its Tariff so as to raise $46,167,000
of additional revenue and pledge to withdraw Foreign troops from that
country whenever the security of foreigners in China was assured.
The settlement of many of these issues was affected by the
powers and policy of the Committee on the Pacific and Far
Eastern questions of which Sir Robert Borden was a most active
member. The 5-Power Naval Treaty or Agreement as to Naval
reduction, finally announced on Dec. 16, scrapped 28 United
States ships of 845,740 tons; 17 Japanese ships of 447,308 tons;
23 British ships of 605,975 tons. The total was 68 ships of 1,-
876,423 tons compared with 66 ships of 1,878,043 under the orig-
124
THE CANADIAN ANNUAL REVIEW
inal proposals. The maximum tonnage of capital ships was fix-
ed for the purpose of replacement, on the basis of American
standards of calculation, as follows : United States 525,000 tons ;
Great Britain, 525,000 tons ; Japan, 315,000 tons. The Treaty as
eventually signed, included all the great Naval Powers— the
United States, Great Britain, France, Italy and Japan. The
British Empire signatures were those of Mr. Balfour, Lord Lee
and Sir A. C. Geddes for Great Britain; Sir R. Borden for Can-
ada ; Hon. G. F. Pearce for Australia ; Sir J. W. Salmond for
New Zealand; Mr. Balfour for South Africa, and Srinivasa
Sastri for India.
LIST OF TREATIES ACCEPTED AND SIGNED BY CANADA FOLLOWING THE
TREATY OF VERSAILLES AND UP TO JAN. 1st, 1921.
Date of
Treaty Signature
Peace Treaty with Austria Sept. 10 1919....
Signed by
...Sir Edward Kemp
....Sir George Perley
....Phillippe Roy
...Sir George Foster
....Sir Edward Kemp
....Sir Edward Kemp
....Sir Edward Kemp
...Sir Edward Kemp
....Sir Edward Kemp
....Sir George Perley
....Sir George Perley
Peace Treaty with Bulgaria . Nov.
27
16
29
10
10
10
10
10
9
1919....
1920....
1921....
1919....
1919....
1919....
1919....
1919....
1919....
Protocol accepting Statue of Permanent Court of Interna-
tional Justice • Sept.
Treaty for the Revision of Berlin and Brussels Acts Sept.
Treaty with Czecho-Slovakia re Minorities Sept.
Treaty with Serb-Croat-Slovene State re Minorities Sept.
Arms Traffic Convention Slept.
Treaty with Roumania re Minorities Dec.
Treaty of the 9th Feb., 1920, regarding Norway's Sover-
eignty over Spitzbergen .
Peace Tieaty with Hungary June
4
5
10
30
28
1920...
1920...
1920....
1920....
1920...
...Sir George Perley
...Sir George Perley
...Sir George Perley
....T. H. Williamson
....The Earl of Derby
Treaty with Denmark regarding Slesvig July
Treaty between Principal Allied and Associated Powers and
Poland, Roumania, Serb-Croat-Slovene State and
Czecho-Slovakia regarding Frontiers of Central Europe. Aug.
Universal Postal Union Convention Nov.
Treaty recognizing Roumania's sovereignty over Bessarabia Oct.
The relations of these two great countries had al-
The Relations ways been important to Canada ; during the world- war
of Great tkey became absolutely vital ; in the particular year
Britain ana , ., .. «•!•«*• 1 « •» «
the United under consideration all kinds of issues developed and
States in 1921. culminated in the Washington Conference just de-
scribed. There was and had been for over a century
one broad line of demarkation between the Republic and the Empire
in memories of the Revolution; these memories were fostered by
school-books, 4th of July orations, journals of the Hearst type,
extremist Irishmen, German agitators. Civil war conditions and
memories also proved a source of contention. At the beginning of
the World war it looked, for a couple of years, as if new and serious
issues might develop. There was acrid correspondence between the
Governments, there was the Hearst press, there were increasing
evidences of German and Irish hostility and propaganda, there was
the De^Valera tour of the United States, there were the Senate
Resolutions as to Ireland, there were Admiral Sims' revelations to
the Senate committee (Mch. 22, 1920) as to the utterance of Admiral
Benson, Chief of Naval Operations during the War: "Not to let
the British pull the wool over your eyes; we would as soon fight
them as the Germans."
RELATIONS OF GREAT BRITAIN AND THE UNITED STATES 125
Meanwhile, however, other and numerous matters had been
gradually changing the relationship, the sentimental, diplomatic
educational and newspaper outlook, of the two nations. Canada
was a factor in this process, the Rush-Bagot agreement was at once
an element and evidence of its existence; the visit of the Prince of
Wales helped, the diplomacy of men like Bryce and Reading aided
the changed conditions which war-time co-operation promoted;
the Presidential elections of 1921 showed a distinct lessening in the
heated utterances of preceding periods ; the expected solution of the
Irish question and the free discussions of the Washington Conference
helped the growing amity. Historical misunderstandings began to
be dissipated, even the teachings of history were amended. England
supported the Sulgrave movement and honoured the memory of
George Washington, there were United States movements to cele-
brate the anniversary of the signing of Magna Charta.
British interests in the United States at this time lay with
American co-operation in reconstructing Europe and conserving
world-peace; questions of trade and finance were bound up in this
general issue. Rumours as to a British appeal for financial aid
were answered by an official statement from the British Embassy
on Jan. 13, 1920, stating that its Government had invited the co-
operation of the United States in a joint action for relief and re-
construction in the suffering parts of Europe: "Any such measures,
if finally agreed upon, must obviously involve no further borrowings
by the people of the United Kingdom from the United States, but
further advances by the United Kingdom, as well as by the United
States, to countries requiring assistance." There was no doubt that
Britain would have been willing at this time to consider cancellation
of its War loans of $6,160,000,000 to France, Italy, Russia and other
Allies, if the United States would have done something of the kind
with its Loans of $9,450,000,000 — of which $4,210,000,000 was to
Great Britain. Maynard Keynes, the author, financier and
statistician, defined the situation as follows:
1. The sums which the British Treasury borrowed from the American
Treasury, after the latter came into the War, were approximately offset by the
sums which England lent to her other Allies during the same period (i.e. excluding
sums lent before the United States came into the War) ; so that almost the whole
of England's indebtedness to the United States was incurred, not on her own
account, but to enable her to assist the rest of her Allies, who were, for various
reasons, not in a position to draw their assistance from the United States direct.
2. The United Kingdom disposed of about $5,000,000,000 worth of foreign
securities, and in addition incurred foreign Debt to the amount of about $6,000,-
000,000. The United States, so far from selling securities, bought back upwards
of $5,000,000, 000 and incurred practically no foreign Debt.
The United States Government was, however, opposed to any
action of this kind as it was to any direct participation in Con-
ferences looking to the financial reconstruction of Europe. Mr.
Glass, U.S. Secretary of the Treasury stated (Jan. 2nd, 1921) to a
Committee of American Chambers of Commerce that: "The Govern-
ment is convinced that the credits required for economic restora-
tion must come through private channels. This Government fears
126 THE CANADIAN ANNUAL REVIEW
the proposed Conference would mean that many Europeans would
assume that the United States was about to shoulder more of their
burdens." Sir Robert Home, a member of the British Govern-
ment, and, a little later, Chancellor of the Exchequer was explicit
in this connection (London, Jan. 7) : "The only solution is the pro-
posal mooted some time ago that the United States waive Britain's
indebtedness, and that Britain should do the same as regards
European countries. There should be forgiveness of debts all
around." As to this question, A. W. Mellon, the new Secretary
of the Treasury, stated to a Senate Committee on July 16, 1921 that
Austen Chamberlain, British Chancellor of the Exchequer, had on
Feb. 9, 1919, cabled a Treasury representative (R. C. Lindsay) at
Washington that Great Britain would welcome "a general cancella-
tion of inter-governmental war debts," and that in August, 1920,
Mr. Lloyd George had written at length to President Wilson on the
same subject. In the letter he said: "The British Government has
informed the French Government that it will agree to any equitable
arrangement for the reduction or cancellation of inter- Allied in-
debtedness, but such arrangement must be one that applies all
around." Details were not presented but the broad idea left for
consideration. Mr. Mellon told the Senate that the United States
Government had considered this proposal out of the question.
Statesmen of both countries, however, were steadily developing
forms of friendly expression and intercourse. Sir Auckland
Geddes, British Ambassador, delivered a careful and official address
at New York on May 25 describing Britain's work in the War and
its place in the world-reconstruction since going on. Speaking
as a Scotchman, he said: "Seeing her in that external way, judging
her by what I see, I believe England is to-day spiritually greater
than she has ever been. I know that she is the leader among the
British nations. Day by day I scan your press and magazines,
so far in a vain search, for any adequate realization of the pulsating
new life within the old shell of England, x x x The people of
England to-day are strongly anti-militarist, liberal, democratic,
seeking no quarrel, jealous of none, hoping for world peace and
determined to make great sacrifices, if necessary, to secure it."
The Oil situation in Mesopotamia and elsewhere was explained as
were charges of Naval domination. As to the former question,
Great Britain met the United States more than half way and on
Mch. 22 it was announced that she had brought about inclusion, in
the Mandate terms, of a provision according to Americans the same
commercial and industrial opportunities in Mesopotamia as were
employed by the nationals of States which were members of the
League of Nations.
The new United States Ambassador to Britain — George Harvey
— said on landing at Southampton (May 10) that: "You have more
than our sympathy, for there never was a time when America felt
so keenly the moral obligations she owes to the Mother Country.
I am directed by my Government to extend to England the full
co-operation of America in all good works, and if this great Empire
I
RELATIONS OF GREAT BRITAIN AND THE UNITED STATES 1 27
and the great Republic get together, shoulder to shoulder, they
cannot and must not fail to save themselves and the world."
To a London banquet given Mr. Harvey on May 19, Mr. Lloyd
George said, with emphasis: "The future welfare of the world
depends more upon the good will, understanding and co-operation
of the great English-speaking peoples than it does on any other one
factor. That is the surest guarantee of a peaceful world. " In
unveiling a bust of Washington at St. Paul's the American Ambas-
sador reciprocated the above remark: "Washington was a great
British soldier and a great American patriot — which are much the
same thing/' President Harding in his cabled message referred to
"the British shrines of our common patriotism" and to the occasion
as "a reminder of the sacrifices that in recent times have drawn these
two peoples so close together." On the same day Sir Auckland
Geddes at Washington placed a memorial wreath of roses on the
United States flag, as a British tribute to the American dead in the
War.
Similar incidents might be greatly multiplied. One of the
founders of Rotary Clubs — Paul Harris — expressed to the Edin-
burgh Convention on June 13 his appreciation of the enormous
influence in American life of the British Pilgrim Fathers, the
Y.M.C.A., the Salvation Army and the Boy Scouts. A statue of
George Washington was unveiled in Trafalgar Square, London, on
June 30, as a gift of Virginia to Great Britain and Lord Curzon, in
accepting, declared the two peoples to be now "indissolubly one";
the London Times on July 4 published an American Supplement and
in October, Queensland, Australia, proposed a Loan of $12,000,000 in
New York — the first Australian loan in the United States ; a stirring
message from the King, a sutable reply from the President and the
gift of the Victoria Cross to the Unknown Soldier of the United
States, buried in Arlington cemetery, marked the date of Nov. 11,
while the Congressional Medal was, on Oct. 17 laid by General
Pershing on the tomb of the British Unknown Warrior at West-
minster Abbey. It may be added that early in the year (Jan. 26)
a British Empire Chamber of Commerce was organized at New
York.
Incidents occurred from time to time indicative of the other
kind of feeling. At Boston (Mch. 27) during the visit of the Lord
Mayor of Cork, a crowd of Irish-Americans tore down a British
flag and trampled it under foot; W. R. Hearst and his papers and
journals maintained a bitter anti-British campaign; no Union Jack
was visible on the New York City Hall flag-pole during Lord Beatty 's
reception, though it was frequently found along Broadway; late
in December a Christmas message was sent to "the People of
India" by 44 members of the U.S. Commission to Promote Self-
Government in India and including ex-Governor Dunne of Illinois,
the Mayor of Milwaukee, Senators Norris of Nebraska and Walsh
of Massachusetts and Congressman Burke of Pennsylvania. It
expressed the sympathy and support of the United States to them
and "to all peoples struggling for freedom." Meanwhile, all kinds
128 THE CANADIAN ANNUAL REVIEW
of interests were growing up in the United States which concerned
the power of Britain and the position of Canada. The Republic
was sharing in the reconstruction of Europe by giving advice, with
"unofficial observers" present at some of the important Conferences,
or Councils, or League of Nations meetings, with Ambassadors in
attendance at others, with protests against policies such as those
involved in various Mandates — but with no responsibility assumed
or shared until the Washington Conference gave new direction to the
Foreign policy of the United States.
The Republic had expanded territorially and, in 1898, acquired
the Philippines, Porto Rico, Guam and Cuba — the Treaty of 1904
gave the United States rights of intervention for "the preservation
of Cuba's independence" and the maintenance of a Government
"adequate for the protection of life, property, and individual
liberty." During the World War it had occupied Santa Domingo,
Haiti and Nicaragua upon a strictly military basis; Panama and
Hawaii were other countries within its orbit of power. In the
Philippines there were urgent demands for independence and formal
appeals to President and Congress; in Haiti and Santa Domingo
there were vigorous protests from the negro population, many
allegations of oppression and cruelties under military occupation,
urgent demands for withdrawal of soldiers and establishment of
self-government. American journals of this year contained many
articles as to these countries and the alleged abuses, mistakes, or
mis-government. H. G. Knowles, formerly U.S. Minister to Santa
Domingo, Manuel L. Quezon, President of the Philippine Senate,
and Leader of the Indpendence movement, H. P. Krippene as to
the demands of Porto Rico, W. E. Pulliam, formerly Receiver-
General of Dominican Customs, were amongst those who wrote
strongly on these varied problems. General Leonard Wood and
W. C. Forbes, Governor-General, who were appointed by the U.S.
Government to investigate and report upon Philippine demands for
independence, reported at length on Oct. 8, 1921, against any
serious concession to separationist activities and urged that "under
no circumstances should the American Government permit to be
established in the Philippine Islands a situation which would leave
the United States in a position of responsibility without authority."
These conditions afforded interesting points-of-view and policy
as compared with British Colonial action and polity; the above
warning involved conditions similar to the British situation in the
Dominions, except that the latter showed co-operation in all essentials.
Other American matters of import to Canada included Census
statistics and official estimates showing the current value of pro-
perty in the United States as $350,000,000,000 (Commissioner of
Internal Revenue) with a National Debt on June 30, 1920 of
$24,299,321,467; figures of Export trade which showed $4,482,122,-
696 in 1921 compared with $8,228,016,307 in 1920 and of Import
trade totalling in the same years, respectively, $2,509,025,403 and
$5,278,481,490. The new Cabinet of the United States under
President Harding, as announced on Mch. 3rd, 1921, and with
GENERAL RELATIONS OF CANADA AND THE UNITED STATES 129
whom British and Canadian negotiations of varied nature took
place from time to time was as follows :
Secretary of State Charles Evan Hughes New York
Secretary of the Treasury Andrew W. Mellon Pennsylvania
Secretary of War John M. Weeks Massachusetts
Attorney General Harry M. Daugherty Ohio
Postmaster General Will H. Hays..
Secretary of the Navy Edwin Denby
Secretary of the Interior Albert B. Fall
Secretary of Agriculture Henry C. Wallace
Secretary of Commerce Herbert C. Hoover.
..Indiana
..Michigan
..New Mexico
..Iowa
..California
All through its growing national life, Canada had
General Rela- felt acutely the influence of the United States — some-
tions of times a friendly force, sometimes the reverse — but
th!Tuntted always close and insistent. It was the factor of a
States. population ever-growing in numbers, in wealth, in
trade, in social activities, in political adventure, in
reform energies, in varied points of view. Change, in modern days
was the slogan of the American, change became, though in a lesser
degree, the principle of Canadian democracy. The steady pressure
of an enormous population from the South upon Canadians pro-
duced the inevitable process of imitation and this grew with the
greatness of the Republic. Canadian journalism modelled itself
upon that of the United States; the Canadian accent became that
of the American and could hardly be distinguished by the average
Englishman; the papers of Canada accepted the American cable
news from abroad, American "boiler-plate" reading matter, Amer-
ican illustrations, American comic supplements; United States
magazines covered every Canadian book-stall and made purely
Canadian monthly journals impossible until very recently; Uni-
versity text-books, methods of teaching, guidance of studies and
popular or class organizations were largely affected by American
practise; U.S. games such as football and baseball superceded to
a great degree the Canadian lacrosse or English tennis and cricket ;
Canadian fashions in clothes and in slang were made in New York ;
theatres were provided almost exclusively with American "shows"
and took their place in United States circuits while the later Moving
Picture development was, up to 1921, almost exclusively American.
Meanwhile the national development of Canada, its indepen-
dence of the United States, had continued and grown greatly;
Annexation as a policy or active movement was dead and Canadian
patriotism and British loyalty seemed unaffected by this extra-
ordinary process of social assimilation. Yet in 1921 and immedi-
ately preceding years there were some evidences of this influence in
Canadian policy and action. American high Protection forced
Canadian protests against the British cattle embargo; American
farm organizations gave the initiative, though not the final forms,
to Canadian agricultural bodies; American Prohibition advocacy
and legislation vitally affected Canadian policy; United States
Labour organizations continued to control the chief of those in
Canada with undoubted influence and force; American necess-
ities as to Oil gave impetus to the efforts of the Imperial Oil
130 THE CANADIAN ANNUAL REVIEW
Co. and its subsidiaries; United States views as to British titles un-
questionably affected the Canadian opinion expressed by Parlia-
ment— through constant formulation in press and upon platform
of an American form of democracy as against that of Britain; the
United States attitude toward Japan found a real and powerful
echo in Canada's policy at London and Washington; in trans-
portation matters the wages of labour and the ratio of freight rates
were admittedly guided by American practice and conditions; in
1920 Canada purchased $126,000,000 worth of goods from Britain
and $802,000,000 from the States, while emigration from the
United States to Alberta, for instance, totalled 13,283 with about
6,000 from other countries.
With all this movement and surface influence upon its people
and policy, Canada remained, however, Canadian in heart and
voice, British in its fundamental instincts. But the latter senti-
ment was becoming somewhat dulled and obscured by the pressure
of extraneous factors and this found expression in a current of Na-
tionalism which was not anti-British but in its point and applica-
tion was non-British ; at the same time the popular feeling was not
, pro- American, in either political thought or policy. An illustration
^of this was seen in Canadian hostility to the Hearst press of the
United States. The Toronto Globe of Mch. 1st re-published ex-
tracts from the Hearst newspapers of Feb. 1st calling Great Britain
"a greedy and unscrupulous international burglar and house-
breaker" and of Feb. 24 declaring that British rule in India was
"as savage as that of the Turk in Armenia and as despotic as that
of the Czar in Russia"! The Globe urged Parliament to at once
deal with these papers : "The State cannot countenance or encourage
an avowed and unscrupulous enemy. It cannot make terms with a
criminal. Hearst is deliberately inciting his dupes to declare war —
war upon our country and our flag. We can bar his propaganda at
the border. That should be done at once." Other journals asked
why Canada should supply W. R. Hearst with the newsprint which
he used in maligning the Empire and provoking war; the Regina
Leader banned his Magazine advertising and on Apr. 16 announced
that all advertisements of Cosmopolitan, Hearst's, Motor, Harper's
Bazaar, Good Housekeeping and Motor Boating would be excluded
from its columns; the Ontario Legislature on Apr. 30 passed a
unanimous Resolution declaring that all Hearst publications should
be excluded from Canada and asking that the Federal Government
take immediate steps in connection with the matter.
During this year a curious development of international
sentiment occurred in a quiescent acceptance by Canada of its
supposed position as a sort of national interpreter and pacific bridge
between Great Britain and the United States. It was not always
directly referred to and there was much ignoring of Britain's
position, and of its persistently peaceful policy toward the United
States when describing Canada's position in this respect. For
instance, on Apr. 26 President Harding addressed an I.O.O.F.
meeting at Washington and, in response to a Canadian expression
GENERAL RELATIONS OF CANADA AND THE UNITED STATES 131
of international friendship, stated the pleasure with which, he said,
"an American of the United States" heard such words from "an
American who hails from Canada". He declared that "after all, it
little matters what flag we owe our allegiance to on the North
American continent. I like, above all else, the example of Canada
and the United States dwelling throughout the past century in peace
and under most amicable relations with a single purpose to forward
the cause of human kind." The President added that he desired
"Canada always to look to the south and to fix its gaze on the most
representative democracy in the world."
Mr. Premier Meighen of Canada wrote to the 4th of July
edition of the London Times an amplification of this feeling: "It
has been repeatedly recognized, both by British and American
statesmen, that the peace and welfare of the world in the future
depend upon the maintenance of a spirit of understanding and co-
operation between the two great English-speaking commonwealths,
xxx Canadians have had unique opportunities for knowing
and understanding not only their own fellow-citizens in the other
nations of the British Commonwealth but also their friends and
kinsmen of the great Republic to the South." The American
Ambassador in London (Mr. Harvey) put the point explicitly at a
Dominion Day Dinner on July 1st: "You are interpreting to us
day by day, in Canada, the freedom, the liberty and the order that
is found beneath the folds of the British flag, and you are inter-
preting to Great Britain the system, the method and the practical
operation of a federalized government such as the United States
enjoys. Canada is, in my sober judgment, destined by the God
of nations to be the great interpreter, one to another, of the two
great branches of the English-speaking race — the bridge over which
their thoughts may cross one to another, the link by which their
hearts may be bound."
An incident of the year was the visit to Canada of about 60
members of the United States Congress and various newspaper staffs,
with certain officials, for the purpose of studying the Canadian
Sales Tax in operation. They were given a luncheon by the
Montreal Board of Trade (Nov. 29) with addresses from Senator.
Lome C. Webster, of Montreal, Representative Lester D. Volk, of
New York, and Sir Harry Lauder of Great Britain. Mr. Webster
pointed out that "just as many of your railroads and industries
were founded by British money in the early days, so many of our
larger industries owe their existence and development to American
investors." Mr. Volk expressed discontent with Income tax opera-
tion in the United States and declared that: "Our opinion as to the
applicability of the Sales Tax to the United States must necessarily
rest in a large measure upon the verdict of the business men of
Canada, familiar with its physical operation." At a Canadian
Club luncheon on the 28th Congressman W. F. Clouse referred to
the "imaginary line" between Canada and the United States and
declared that there had once been a similar line between the North
and South of the Republic. It had since disappeared! At Ott awa
132 THE CANADIAN ANNUAL REVIEW
a Board of Trade dinner was tendered, a part of the Cabinet met
and a formal welcome was offered by Sir James Lougheed, Acting
Premier ; addresses were delivered by R. W. Breadner, Commissioner
of Taxation, R. R. Farrow, Deputy-Minister of Customs, and
others.
During this year, as in many decades past, American social
conditions were of great importance to Canada and held a prominent
place in the evolution of its thought and customs. Many of these
appealed to Canadians; many others repelled. Hon. James M.
Beck, well known in the Dominion and, in 1921 Solicitor-General
of the United States, told the American Bar Association at Cin-
cinniti on Aug. 31 something of the increase of United States law-
lessness and crime during recent years. In the Federal Courts
pending criminal indictments had increased from 9,503 in 1912 to
over 70,000 in 1921; losses from burglaries (repaid by Casualty
Companies) had grown from $886,000 in 1914 to over $10,000,000
in 1920 while embezzlements increased five-fold; in Chicago 5,000
automobiles were stolen in a single year and in 1919 there were 336
murders and 44 convictions while New York (1918) showed 221
and 77 respectively; his estimate of annual profits from violation of
the Prohibition laws was $300,000,000. These and other conditions
were, to some extent, part of a world- wide revolt against authority,
law and order; Canadians were prone to feel, however, that the
situation was not duplicated in the Dominion. Lynching, for
instance, was practically unknown in Canada; the United States
records between 1885 and 1920 showed an average of 94 yearly or a
total of 3,403. So, as to Divorces, while in Canada they were
counted yearly by the dozens they totalled in the United States —
according to the International Committee on Marriage and Divorce
-132,000 in 1920 and a total of 2,349,419 between 1889 and 1920.
These matters had a very distinct influence against any closer
union of the countries, just as many/of the others specified above
aided co-operation and closer relationship.
There were other influences of varied nature. The Emergency
and Fordney Tariffs and their agricultural schedules and protective
cattle embargo was the chief — as in previous periods the McKinley
and Dingley Tariffs had been. There was the proposal of a cor-
respondent in the New York Tribune (Feb. 21) looking to "the sale
of Canada to us for our $4,000,000,000 claim against England,"
which was based upon the allegation that Canadians were Americans
anyway and would assimilate without trouble! There was the far-
flung and baseless rumour originating in the United States Senate
as to the cession of the West Indies, as well as Canada, to the Re-
public; the fact that during a Christian Endeavour parade in New
York, where 1,000 Canadians marched as Delegates with 14,000
American Delegates — including people from all parts of the British
Empire— no Union Jack was carried; the continued humiliating
experiences of Canadian travellers to the United States in being
refused admission by U.S. immigration officials and compelled to
leave the train at Emerson or other international points; there was
GENERAL RELATIONS OF CANADA AND THE UNITED STATES 133
the exploiting in Canada of American publications giving biassed
and unfair views of historical events and periods as in the case of the
Dominion Educator, an 8-volume work to which Toronto Saturday
Night drew attention on June 5 as having on its title-page the name
Dr. J. L. Hughes of Toronto and of E. D. Foster of the United
States, as Editors. It was stated that this work — sold for the use
of Canadian school-children — devoted 48 pages to the United
States and 16 to Canada; to the constitution of the United States
7% pages and to the B.N.A. Act ten lines; to President Wilson 8
pages while Sir Robert B or den and the Duke of Connaught shared
one page between them. A whole page was given to the British
Empire! These incidents were exceptional as the trend of 1921
was largely toward fraternal and friendly relations. The following
summary of 1921 occurrences in this connection may be given and
they indicate very clearly the interesting currents of influence at
work during the year:
1921 Incidents in American-Canadian Relations.
Jan. 4. While at the Washington Conference Sir Robert Borden discussed
with officials of the United States Government the question of a new Fisheries
treaty between Canada and the Republic. In their final Report the Joint Com-
mission of 1918 had recommended that the Treaty of 1818 be amended to provide
for the settlement of the later Fisheries question.
Jan. 26. The organization of the British Empire Chamber of Commerce in
New York was completed with Edward F. Dan ell of New Yoik as President and
addresses from leading British and Canadian men in New York. It was planned
to organize local affiliated Associations in the important trade centres of the
United States with a Trade Research and Service Department and a periodical
journal and bulletins on trade opportunities.
Jan. 27. The Canadian Government appointed the following as Canadian
representatives on the International Committee on Marine Fishery Investigations :
W. A. Found, Assistant Deputy of Fisheries ; Loring C. Christie, Legal Adviser,
Department of External Affairs, Dr. A. G. Huntsman, of the Canadian Marine
Biological Board. The Committee, together with a similar Committee from New-
foundland and the United States, was to determine measures of co-operation for
the scientific investigation of the Deep-sea fisheries adjacent to both coasts of this
continent.
Feb. 9. A decision was announced at Washington that the shipment of
liquor to one foreign country from another via the United States was illegal under
the Volstead Act.
Mch. 7. Lieut. -Col. John A. Cooper, Director of the Canadian Government
Offices in New York, stated at a Canadian Club dinner in that city that the United
States had 93 trade agents or Consuls in Canada and that he had urged the
Government to appoint 93 trade Commissioners in the United States, with a
sufficient charge or fee to American export manufacturers to bear the expense of
maintenance — as was the method adopted by U.S. Consuls in Canada.
Mch. 30. It was announced that an Act of the Washington State Legislature
had abolished the office of Fish Commissioner and created, instead, a Board of
Fisheries consisting of three members to be appointed by the Governor and to
which large powers were given. The Board had power to promulgate rules and
regulations governing the taking of fish, and fixing the times, places and method
of their capture. This promised to affect the serious conditions as to salmon, etc.
in Pacific international waters.
Mch. 31 The final settlement of the membership of the Peace Commission
under the Peace Commission Treaty of Sept 15, 1914, was stated as follows in
the Report of the Under-Secretary of State for 1920-21:
Umpire Professor Nansen
British National Delegate Viscount Bryce
134 THE CANADIAN ANNUAL REVIEW
or in the alternative cases concerning Canada Sir Charles Fitzpatrick
Australia T.ne High Commissioner
New Zealand Sir Robert Stout
South Africa ~ Rt. Hon. W. P. Schremer
British Non-National Delegate Monsieur Millerand
U.S. National Delegate Judge Grey
United States non-National Delegate Senhor DeGama
Apr. 3. The preliminary Emergency Tariff Bill for the new Congress left
Lumber on the free list — except as to shingles, etc. — because it was said (1) Can-
adian costs of production were similar to those in the United States and (2) be-
cause Canada was in a position, it was thought, to injure American print paper
mills by placing a high export duty on wood-pulp.
Apr. 5. Lieut. -Col. J. A. Cooper addressing the Toronto Board of Trade
urged (1) that Canadian exports to the United States had declined in comparison
with our trade with other countries; (2) that Canada had adopted the principle of
trade representation in every country in the world except the United States, and
(3) that it was absolutely necessary to increase Canadian exports to the United
States in comparison with Canadian imports.
Apr. 23. At the request of the State of New York, Brig. -Gen. C. J. Arm-
strong, C.B., C.M.G., G.O.C. Military District No. 4, reviewed the 13th Coast De-
fence Command of New York.
Apr. 27. The annual convention of the U.S. Chambers of Commerce heard
an important address from J. F. M. Stewart, manufacturer, of Toronto, on the
Canadian Sales Tax: "It was well received by the people of Canada; it has not
proved burdensome or an undue handicap to our commercial activities; it is
simple in its application; it is easy and cheap to collect, and it is productive of
substantial revenues."
May 1. It was stated at Vancouver that 95 per cent, of the sawmills in
British Columbia were owned and operated by United States capital, 3 per cent,
were under part American and part Canadian ownership and 2 per cent, were
Canadian outright. Hence the local concern in U.S. Tariff proposals as to
Lumber.
May 18. Canadian universities were well represented through the Federa-
tion of University Women, at the reception given to Mme. Curie, the French
discoverer of radium, at the Carnegie Hall, New York.
May 24. W. W. Husband, U.S. Commissioner-General of Immigration,
stated at Washington that the head-tax imposed in 1917 was applied only to
foreigners (including British) who had lived in Canada less than one year, but
that the present law provided an $8.00 tax on each individual, including native
Canadians. It was, he declared, unnecessary, disturbed friendly relations and
should be repealed.
June 17. The proposal in the U.S. Permanent Tariff of a 25 per cent, tariff
against Canadian Lumber aroused much discussion in Canada. It was pointed
out that in the 12 months ended April, 1921, the export of logs and lumber from
Canada to the United States made up 66 per cent, of the total exports of these
products from the Dominion— in other words a total of $62,290,000 out of total
shipments of $94,015,000; in the same period the United States w*y Canada's
only outside customer for pulpwood, total shipments reaching a value of $21,-
0 1 3957^t.
June 20. A.Resolution passed the U.S. Senate authorizing the appointment
of a Commission to confer with the Dominion Government or the Provincial
Governments of Quebec, Ontario and New Brunswick as to certain restrictive
orders-m-council relative to the exportation of pulp-wood to the United States
and declaring that if the desired action was not taken in Canada "said Commission
shall investigate, consider, and report to the President, on or before Dec. 1st, 1921,
what action in its opinion should be taken by the Congress that will a'd in securing
the cancellation of said restrictive orders-in-council, so that they may not con-
tinue to militate against the interests of the people of the United States."
XT lu?f 2L Tbe or£anizati°n in 1863 of the first regular Masonic Lodge in
JNorth Dakota was celebrated at Pembina by an international gathering with a
large Winnipeg contingent present including G. N. Jackson, Grand Master of
Manitoba. In his address Mr. Jackson urged an international celebration, under
Masonic auspices, of the signing of Magna Charta.
GENERAL RELATIONS OF CANADA AND THE UNITED STATES 135
June 23. Congressman G. M. Young of North Dakota (Rep.) protested
against a duty on Canadian lumber: "We sell more manufactured stuff to Canada
than to any other foreign country. It goes without saying that the reduction of
our imports from Canada acts as a factor to increase the disparity in the money
exchange rates between the two countries. We ought to take into account that
shutting out $60,000,000 worth of lumber from Canada will be still further aggra-
vating the situation and making it still mere difficult for our manufacturers to
export their products to Canada."
July 9. A tour of inspection of the Power resources of Niagara, the Chip-
pawa Development project and the navigation and power possibilities of the pro-
posed St. Lawrence Deep Waterways system, was inaugurated at Niagara Falls
Ont., by 75 New England members of the Great Lakes-St. Lawrence Tidewater
Association.
July 13. At Windsor the largest submarine cable in the world was laid on
the b^.d of the Detroit River between Windsor and Detroit. It carried 408 pairs
of wires, and would make possible 600 conversations simultaneously between the
two cities.
July 15. The United States cancelled the war legislation granting to Can-
adian fishing vessels the right to use United States' ports equally with American
fishing vessels and this action left the fishing vessels of the United States still en-
joying the privileges of Canadian seaports while Canadian vessels were refused
the courtesies of American ports.
July 15. Regarding the proposed American Fish duties a St. John's, New-
foundland, despatch stated that the enactment imposed more or less prohibitory
duties on fish imported into the United States, to satisfy the fishermen and fish
traders of the United States seaboards, and the effect of it would be to deprive
Canadians and Newfoundlanders of a large and profitable market.
July 18. The American fishing vessel K-182 of Bellingham, was seized by
the Malaspina when discovered poaching within the three-mile limit off the West
Coast, and was brought into Esquimalt harbour the same night.
July 22. Eight United States fishing boats were seized in Passamaquoddy
Bay by the Captain of the Canadian Government patrol boat Dream for violating
the Canadian regulations by poaching in forbidden waters.
July 22. It was stated that the modus vivendi between Canada and the
United States regarding the Atlantic fisheries had lapsed and that the two coun-
tries were back on the basis of a Treaty adopted in the time of George III (1818)
— insofar as the Fisheries were concerned.
July 23. Federal officers seized the British schooner Pocomokie, moored in
Gardner's Basin, Atlantic City, N.J., on a charge of carrying liquor. The ship
was a French- Canadian one and formal notice was served by the British Govern-
ment on Aug. 1 8 that it could not recognize jurisdiction of the United States on
the high seas beyond the 3-mile limit, fixed by international law, which was said
in this case, to have been invaded.
July 26. The Canadian- American Fisheries Conference appointed to con-
sider a settlement of outstanding fishery questions between Canada and the
United States reported as recommendations: (1) That the question could never be
permanently removed from the field of discord unless the markets of both coun-
tries were available to the fishermen of both on the same terms; (2) that arrange-
ments be made by amending the Treaty of 1818 so that the fishing vessels of either
country may enter, from the high seas, any port of the other and clear from such
port ; (3) that the fishing vessels of either country may dispose of their catches and
purchase bait, ice, coal, nets, lines, oil, provisions, and all other supplies and out-
fits in the po ts of either country; (4) that similar privileges be extended as to
preparing catches on board ships or selling such products in the respective coun-
tries; (5) that a treaty or convention for the proper regulation of the Fraser River
Sockeye fisheries should be entered into by Canada and the United States; (6)
that a close season in the Halibut Pacific fisheries for both the United States and
Canada, from Nov. 16 to Feb. 15, be established during a period of 10 years.
Aug. 4. In view of the current cancellation of the War-time Measures Act
which had allowed Canadian fishing vessels to enter United States ports and land
their fish with a consequent reversion in practice to the restrictions contained in
the Treaty of 1 8 1 8, a meeting of the Council of Yarmouth, N.S. , urged the Govern-
ment at Ottawa to promote a Reciprocal treaty whereby Canadian fishing vessels
136 THE CANADIAN ANNUAL REVIEW
would have access to the United States ports with similar privileges to vessels
of that country in Canadian ports.
Aug. 5. The United States Pacific Fleet, comprising 8 fighting ships and a
hospital ship, visited Vancouver and 1,750 sailors were entertained on shore.
Aug. 8. The 66th annual Convention of the International Typographical
Union was opened at Quebec with an address from the Provincial Premier (Mr*
Taschereau) who claimed that the people of Quebec believed, and its laws were
based upon the belief, that capital and labour were both essential to the national
life.
Aug. 9. The University of British Columbia received an offer from the
University of Oregon to accommodate Brit'sh Columbia students who, in view of
restricted space, could not be locally enrolled.
Aug. 18. The International Photo-Engravers' Union Convention held in
Toronto re-elected its United States officials by acclamation; President Woll
of Chicago stated that Labour's principal duty was to make secure the right of the
workers to organize and to collectively cease work when they felt that conditions
justified such action.
Aug. 18. Governor L. E. Hart of Washington State advised the U.S.
Secretary of State that no part of the proposed Treaty as to Sockeye fishing was
acceptable to the State and he suggested that a special Commission, composed of
at least one British Columbia and one Washington resident be named to draw up a
new Agreement. The opposition of the Cannery interests was understood to be
the cause of this policy.
Sept. 5. Lemuel Bolles, Adjutant of the American (Great War) Legion, was
entertained at Ottawa by the Dominion officials of the G.W.V.A. He declared
that he had come to extend the hand of cordial friendship : — "an intimate rela-
tionship, that we may work for our mutual benefit and for the good of all the North
American continent. We are bound by the invisible ties of a common ancestry
and a common heritage."
Sept. 6. Judge Alton B. Parker of New York was the guest at luncheon of
the Canadian Bar Association meeting at Ottawa and, in his notable utterance
made this reference to the lateness of the United States in entering the War:
"It must be borne in mind that there were millions of American citizens who were
carrying on a vigorous propaganda against the Allies and particularly against
Great Britain. The propaganda should not have had weight with the people but
it undoubtedly did, and so perhaps the delay was, on the whole, wise."
Sept. 6 At Blaine, Wash., on the international boundary line between that
State and British Columbia, with lavish display of British and American flags
and 5,000 people present, a Peace Portal was inaugurated and dedicated in honour
of the practical completion of the Pacific Highway, beginning at Vancouver, B.C.,
and running through the States of Washington, Oregon and California to the
border of Mexico, a distance of about 2,000 miles — in memory also of 100 years
of peace between the British Empire and the United States. Mayor R. H. Gale
of Vancouver in his speech said: "Let this arch, more glorious than a frowning
fort or arsenal bristling with weapons of destruction, symbolize for all time that
the United States, Canada and Great Britain stand to-day united as Anglo-
Saxons in defence of justice, liberty and universal peace." Other speakers were
R. Rowe Holland, and Bishop A. W. de Pencier of Vancouver.
Sept. 19. At the great Convention in Toronto of the Sovereign Grand Lodge
of the I.O.O.F. at which delegates were present from every State in the American
Union and from every Canadian Province to a total of many thousands, there
were all kinds of International fraternal actions and speeches. A key-note was
probably the statement of Hon. N. W. Rowell that "our two great nations must
stand side by side and lead the world until we find some means by which the
nations can peaceably settle their disputes." The presence in Canada and the
United States, he said, of such a great Fraternal Order as the Odd Fellows was,
in itself, an excellent illustration of co-operation in its best form.
Sept. 21. According to a statement by J. W. Mitchell, Vice-President of the
Dominion Securities Corporation: "No other conclusion is possible, but that the
flow of American capital to Canadian investments must increasingly continue.
Canada is the second best trade customer of the great Republic. The inter-
change of commodities between us last year was nearly $1,500,000,000. More
than half of Canada's entire trade is with the United States. We are separated
CANADA'S INTEREST IN THE PANAMA TOLLS QUESTION 137
only by an imaginary boundary line, and united by the friendly developments of
over a century of peace."
Oct. 15. During the banquet of the Kiwanis Club District Convention at
Victoria, B.C. — the gathering was international in its membership — Dr. Herbert
Coleman, Dean of the B.C. University, Faculty of Arts, dealt with the situation
in a manner which became popular at such gatherings during this year: "It
would seem that Canada, because of her history and her ancestry, should be
qualified in a special measure to act as interpreter between America and England.
The Canadians are just as American as the Americans — of course, in a special
sense. If all Americans knew the Mother Country as Canadians knew her, they
would not love her, perhaps, as Canadians love her, but there would be no cause
for hate or for indifference."
Oct. 17. The Convention of the Pacific Coast Association of Port Author-
ities was held at Vancouver with delegates present from San Diego, Tampa, San
Francisco, Los Angeles, Portland, Seattle, Tacoma, Chicago and other American
ports. ,
Oct. 24. The annual Convention of the Washington State Educational
Association meeting at Bellingham, approved a Resolution declaring that "a
review of the school hstories of English-speaking countries should be undertaken,
and that a Commission should be appointed jointly by the National Educational
Associations of Canada and the United States to the end that the history-teaching
in these countries may be made true to the interests of harmony and goodwill."
Dec. 1. At the Chicago Convention of the International Association of
Fairs and Expositions, John G. Kent of Toronto was elected President and, for
the first time in 40 years, it was decided to hold the next meeting at Toronto,
Canada. Many prizes were won by Canadian exhibitor's.
Dec. 12. At Vancouver an International Conference of Fishing interests
was held including members of the Fisheries Board of Washington and Canadian
representatives headed by W. A. Found, of Ottawa. The object was preserva-
tion of the Sockeye and ways and means of securing full and complete co-operation
between Canada and the United States.
Dec. 13. Tentative agreement was reached by the Conference as to (1)
protection for immature salmon in the coastal waters off the West Coast of Van-
couver Island and the Washington shore; (2) investigation to ascertain the desir-
ability of prohibiting fishing inside the 3-mile limit off Vancouver Island, as was
done off the coast of Washington; (3) a proposal to establish "humpback" runs
during the even numbered years in Puget Sound and Fraser River waters like
those existing in the odd-numbered years; (4) an agreement as to the salmon
propagation in the waters concerned.
Dec. 31. During 1921 the following American honours or compliments were
paid to Canadians: Dr. Alex. Primrose of Toronto was elected to Board of Regents
of the American College of Surgeons; Dr. Joseph A. Bandouin, Professor of
Hygiene, University of Montreal, was awarded a Rockfeller Foundation Fellow-
ship for the study of Medicine and Public Health in the United States; George
H. Locke, M.A., Ph.D., Toronto, was elected a member of Council in the American
Library Association; Brig.-Gen. C. H. Mitchell, C.B., C.M.G., D.S.O., LL.p., was
granted the Hon. degree of Doctor of Engineering by the Stevens Institute of
Technology at Hoboken, N.J., along with Charles M. Schwab and others; W. E.
Staples, a graduate of Victoria College, Toronto, out of a field of picked men, was
selected as a Thayer Fellow at the American School of Oriental Research in
Jerusalem for the year 1921-22 which included a $1,000 scholarship offered yearly
by the Archaeological Institute of America ;J. E. Atkinson of the Toronto Starvras
elected at New York a Director of the American Newspaper Publishers Associa-
tion.
TU p In continental relationships this matter
1 tie fanama ~. , t _. , ., _. _ . ,r ,., , .,
Canal and affected Canada and Great Britain as well as the
Canadian In- United States, and the growth of the Canal traffic,
*£ rest *n the though obscured by greater issues, was increasingly
tion Ques" important. Opened with large expectations, its ton-
nage in the last 4% months of 1914 was 1,745,334
and in 1915 it was 4,894,134; in 1920 it had grown to 11,236,119
138 THE CANADIAN ANNUAL REVIEW
tons and in the first 9 months of 1921 it was 7,912,737 tons. The
source and destination of cargoes passing through the Canal in 1920
showed that the trade region to which the Canal was of greatest
service was the east coast of the United States, the west of South
America and tlien Europe, the west coast of the United States, the
Far East, Australasia and Mexico. Canal-bound traffic from the
United States to Australasia and the Far East was practically
three times as great as that coming in the opposite direction. Next
to American vessels in this total the chief users of the Canal were
British Empire ships and an official statement issued in September,
1921, showed that for the current fiscal year approximately one-
third of the whole traffic was British with 33 per cent, of all vessels,
passing through the Canal, British, 34 per cent, of the total net
tonnage British, while 32 per cent, of all the cargo handled was
carried in British bottoms.
Into this situation and the free use of the Canal by foreign
nations, which was pledged under 1 1 Treaties signed by the United
States, there was interjected a growing political desire to impose
preferential tonnage rates in favour of American goods or vessels.
During 1920 Senator. Wesley L. Jones of Washington State suc-
ceeded in getting through Congress an Act requiring the President
to abrogate all Treaties with foreign nations that in any way pre-
vented the United States from giving tariff or tonnage advantages
to American vessels, or goods brought in American vessels. It also
authorized the Inter-State Commerce Commission to allow special
discriminatory freight rates on goods destined for export on Amer-
ican vessels. President Wilson signed trie Bill but afterwards re-
fused to abrogate the Treaties involved as being "a violation of
international engagements"; he also declared that Congress had
over-stepped its jurisdiction whilst Japan and Britain lodged pro-
tests at Washington against any such abrogation.
During the Elections of 1921 the Republican Platform was
explicit on this subject: "We recommend that all ships engaged in
the coastwise trade and all vessels of the -American merchant marine
shall pass through the Panama Canal without payment of tolls."
Following this development the U.S. Senate on Oct. 10, 1921, passed
a Bill introduced by Senator W. E. Borah looking to the exemption
of American coastwise shipping from the payment of tolls in the
Panama Canal. A similar proposal had been enacted by Congress
in 1912 but repealed in 1914 on the ground urged (1) by Senator
Root that it would violate Article III. of the Hay-Pauncefote
Treaty, which provided that the Canal should be open to all nations
on terms of entire equality and (2) by President Wilson* that
"we ought to reverse our action without raising the question
whether we are right or wrong, and so once more deserve our reputa-
tion for generosity and for the redemption of every obligation with-
out quibble or hesitation." The Borah Bill was held up in the
House of Representatives, after much discussion, until the Washing-
ton Conference had been held; an interesting incident had mean-
*Note— Message to Congress Mch. 5, 1914.
CANADA'S INTEREST IN THE PANAMA TOLLS QUESTION 139
time occurred in connection with Canada and its relationship to
the Canal.
Early in 1921 (Feb. 9) the first ship took this course from Van-
couver to London carrying wheat, and there were many who be-
lieved that much of Canadian wheat and other products might be
carried that way. Western Canada and Western States would thus
have a new water route to Brazil and Argentina while Central
American countries with Mexico, Texas and other Southern States,
Venezuela, Colombia and Cuba might become more and more im-
portant markets for Canada, as well as for the United States.
During the 12 months of July 1920-June 1921 88 vessels bound to
or from a Canadian port passed through the Canal with a tonnage of
347,123; the Canadian trade of that period through the Canal
showed 420,249 tons of cargo. The vessels sailed chiefly from
British Columbia ports to the Atlantic and Gulf Coasts of the
United States; there was an export trade with the Mediterranean
and seven vessels sailed from ports in Eastern Canada to Australia
via Panama. Hence the declaration of the Chicago Tribune* that:
"If we penalize all foreign shipping interests by the exemption of
American coastwise ships from Panama Canal tolls, Canada may be
expected to denounce the clauses in our Treaty which grant Amer-
ican vessels free and equal use of Canadian canals. At one stroke
the possibility of an annual saving of $6,750,000 to Middle Western
grain-growers through the free use of Canadian canals can, and
probably will, be cut off."
Hence the effort made by Washington — according to a state-
ment on Oct. 15 in the usually well-informed London journal
Canada — to induce the British Government to agree to the viola-
tion of the Hay-Pauncefote Treaty by offering Canadian (not
British) shipping the same exemption which they proposed to con-
fer on themselves. As a matter of fact, the question appears to
have come up at the Imperial Conference in July when the visiting
Premiers were told by the Imperial Government that the contro-
versy might be settled by exempting Canadian coastwise traffic from
the tolls in common with that of the United States. Mr. Meighen
was reported to have declared that he would not accept a special
favour of the kind at the sacrifice of "the general principle of
neutralization" laid down, in the first place, in the Clayton-Bulwer
Treaty and " retained unimpaired" in the preamble of the Hay-
Pauncefote Treaty — to the effect that the Canal should be free to
the vessels of all nations on terms of entire equality, and at tolls
which were just and equitable. This was the attitude of the
Dominion Government on the question. In London on Dec. 6,
F. C. Wade, K.C., Agent General for British Columbia, told the
Society of Arts that the cutting of the Panama Canal greatly
reduced the distance from Liverpool to Victoria, B.C. As to
other Canadian conditions in respect to this route, he made an
interesting statement which indicated its possible importance to
Canada :
*Note— Quoted in Toronto Globe of Oct. 11, 1921.
140 THE CANADIAN ANNUAL REVIEW
If the crop of Canada for 1921 was taken as 288,493,000 bushels, there would
be 288,493 car loads at 1,000 bushels to the car which, divided into trains of 50
cars, would give 14,449 trains of cars loaded with grain. At 53 feet to the car
that would mean five trains to the mile, or a single train of 2,889 miles in length,
If the entire crops had to be handled in a year through Montreal on a single line
it would be at the rate of about 40 cars a day, or nearly two every hour. As there
were still 37 million acres within easy reach of railways in Western Canada, and
hundreds of millions mere untouched and awaiting development, the folly of
moving the crops of the future over land by only one ocean route, could easily be
realized. It had been estimated that the arable land of the Pacific or Western
Canada, comprised 333 million acres, as against 160 millions in the Eastern or
Atlantic Canada. On that basis it was evident that with the development of
traffic westwards and via the Panama Canal, the products and traffic of Pacific
Canada might double that of Atlantic Canada.
This new and curious problem in international and
The Question constitutional conditions was much discussed during
of a Canadian 1921 . it wag a phase jn the Nationalistic development
WaTwnrton- of Canadian and Dominion thought. The simple
The Attitude aspect of the question lay in the obvious need and
of other advantage of having a commercial, financial, and trade
Dominions, representative at Washington ; the complications came
in the effort to add diplomacy and international power
to the position. Had the Canadian Government proposed to ap-
point a High Commissioner to the United States with powers and
functions similar to those of its official at London or Paris, there
would have been few difficulties and little opposition. There,
already, was an Australian Commissioner at Washington and a
Canadian Commissaire-General at Paris; after the setting of the
precedent by Canada there had been for many years High Com-
missioners in London for Australia, New Zealand, South Africa
and latterly for Newfoundland and India.
The matter first came into public discussion in 1920 and the
, announcement, as so often has happened in the relations of Britain,
Canada and the United States, came first from Washington. The
State Department on Apr. 26 stated that, with the approval of the
British Government, definite overtures had been made by Canada
to the United States for the establishment of direct Diplomatic
relations and that the Administration had intimated this would be
quite agreeable. The New York Times, the New York Tribune and
the United States press in general, approved the suggestion; some
because of the growing relations between Canada and the United
States, many because they thought it indicated a growing indepen-
dence of Great Britain. In Canada the idea was approved by
papers of such divergent policies as the Ottawa Journal and the
Toronto Globe, the Montreal Gazette and the Winnipeg Free Press]
the names of Sir Robert Borden, Sir Charles Gordon and Hon. N.
W. Rowell were discussed for the appointment." On May 10, 1920,
an official statement was made in the British and Canadian Par-
liaments and by the British Embassy in Washington. It was uni-
form in terms and stated that :
THE QUESTION OF A CANADIAN MINISTER AT WASHINGTON 141
As a result of recent discussions an arrangement has been concluded between
the British and Canadian Governments to provide more complete representation
at Washington of Canadian interests than has hitherto existed. Accordingly,
it has been agreed that His Majesty, on advice of his Canadian Ministers, shall
appoint a Minister Plenipotentiary who will have charge of Canadian affairs and
will at all times be the ordinary channel of communication with the United States
Government in matters of purely Canadian concern, acting upon instructions
from and reporting direct to the Canadian Government. In the absence of the
Ambassador the Canadian Minister will take charge of the whole Embassy and
of the representation of Imperial as well as Canadian interests. He will be
accredited by His Majesty to the President with the necessary powers for the
purpose. This new arrangement will not denote any departure either on the part
of the British Government or of the Canadian Government from the principle of
the diplomatic unity of the British Empire, x x x In view of the peculiarly close
relations that have always existed between the people of Canada and those of the
United States, it is confidently expected that this new step will have the very
desirable result of maintaining and strengthening the friendly relations and co-
operation between the British Empire and the United States.
Mr. Bonar Law at Westminster and Sir George Foster at
Ottawa submitted the statement; Mr. Mackenzie King at Ottawa
referred to "this far-reaching and important step" and asked for
the correspondence on the question. In the Canadian Commons
on May 17 following, the Hon. W. S. Fielding formally requested
the official correspondence and expressed "great doubt as to the
wisdom of the step"; he declared that there had been no public
discussion or demand and no debate in the House regarding the
matter; the issue was "nearer to being a constitutional change"
than any of the various matters recently brought before the House.
Mr. Rowell spoke at length in favour of the proposal and summed
up his views as follows: "We are going to do two things — manage
our own affairs and maintain the unity of the British Empire. I
believe that a Canadian representative in Washington, meeting
and talking with representatives of the American Government
and dealing with problems common to both, will make for strength-
ening the good relations that now exist between the two countries."
Ernest Lapointe asked a series of acute questions as to the
constitutional issue and as to situations which might arise at
Washington under the new arrangement and wanted more informa-
tion. Sir Robert Borden spoke at length in favour of the appoint-
ment as practicable, desirable, good for the Empire and for Canada ;
he eulogized recent British Ambassadors — Bryce, Spring-Rice,
Reading — and declared that three-quarters of the work of the Em-
bassy at Washington had relation to Canadian interests ; between the
people of Canada and the United States "there was a very perfect
understanding". The Hon. Mackenzie King expressed doubt of
the arrangement in the light of present information; quoted Aus-
tralian claims for similar representation and declared that "if our
action in failing to discuss this matter openly and freely is going to
create some unrest in Australia, South Africa and New Zealand,
and some concern in England, surely we are not helping to bring
about the closer relations between the different parts of the British
Empire which it ought to be the object of every free Parliament
within the Empire to bring about."
142 THE CANADIAN ANNUAL REVIEW
He saw danger and difficulty in the Canadian Minister acting
at times for the British Ambassador — the step was an extreme one
and he preferred cautious evolution: "What seems to be the more
rational course is the middle one, that in matters between Canada
and other countries Canada should manage her own affairs, and
that in matters between Great Britain and other countries, Great
Britain should manage her own affairs, always, when necessary,
with co-operation and conference between the two." Sir George
Foster followed for the proposal and Hon. R. Lemieux, in criticism
of certain possibilities. "By the appointment," he said, "of that
so-called Minister Plenipotentiary Canada, sooner or later, may be
involved in grave international problems" ; he did not like the pro-
posed change and preferred to "let Providence shape our destiny".
The Minister of Justice (Mr. Doherty) followed and Mr. Fielding's
request for correspondence was voted down by 68 to 63.
The matter came up again in the House on Apr. 21, 1921,
when Mr. Premier Meighen in answer to a question said there was
"some urgency" in the matter of an appointment, but the Govern-
ment had not decided on the best person for the post. A debate
ensued on the appropriation of $60,000 for "Canadian Representa-
tion in the United States". Sir Robert Borden made an elaborate
address and reviewed the Trade diplomacy of Canada since the
days of Sir A. T. Gait and the 1870 debates on the subject; on the
constitutional issue he quoted at length from speeches by David
Mills and D' Alton McCarthy in the House in 1892. The Minister
he wanted would be "the King's envoy to represent especially
Canadian interests" — acting in harmony and in co-operation with
the British Ambassador, but possessing "a perfectly independent
status so far as the affairs of Canada are concerned." He mentioned
the questions between Canada and the United States dealt with in
recent years as including the following :
The Chicago Drainage Canal; Supplies of Coal for Canada.
Level of the Lake of the Woods; The United States Merchant Marine Act.
Levels of Lake Memphremagog; Panama Canal Tolls.
Exportation of Pulp wood from Canadian Crown Lands.
Interchange and intercourse between Canadian and American Railways.
Fishery questions on Seaboards and the Great Lakes.
Mr, Fielding followed and was explicit in his view that old
conditions as to self-government had greatly changed: "I am of
opinion that we have got as far as we need to go to-day. We are
right at the very verge of Independence. There are some who wish
to go further, and while I do not quarrel with them for holding that
view, I do not agree with them; and I do not believe the majority
of the people of Canada do. x x x My view is that this proposal
of an Ambassador at Washington is not a useful one. My belief
is that the interests of Canada can be served by a Minister of the
Crown after consulting with his colleagues at a Council meeting;
maybe taking the afternoon train down to Washington and meeting
the authorities in the United States, x x x We cannot make a
treaty without the Ambassador of Great Britain. We cannot be
THE QUESTION OF A CANADIAN MINISTER AT WASHINGTON 143
in the Empire and not accept the responsibilities which that in-
volves. I am not saying anything in a controversial sense, but my
view is that we have to-day, in the making of commercial treaties,
all the power that we ought to have or that is any good to us."
Mr. Rowell and other members spoke and the Opposition
Leader (Hon. Mackenzie King) pointed out that the press as a whole
had taken no definite stand in the matter; he reiterated his doubts
as to the exact position and power of such a Minister; he agreed
with Mr. Rowell that the King of England was, also, King of
Canada, and that a Canadian Minister should have the same right
and authority to make a treaty in the name of the King as any
Minister of the British Government; he opposed the proposal that
any representative from Canada should assume complete control
of the British Embassy at Washington; he did not oppose the
appointment of a Minister with Canadian powers only. W. F
Cockshutt (Con.) drew a picture of Canadian Ambassadors in
many countries, of a United States Ambassador at Ottawa, of inter-
national and inter- Imperial complications, of a policy which was
"the thin edge of separation." The Hon. T. A. Crerar supported
the general proposal and criticized the Government for not making
an appointment.
Mr. Lemieux said: "I do believe that a High Commissioner
would be more useful than an Ambassador at Washington unless
we choose to cut the painter at once and declare ourselves an in-
dependent nation ; because you cannot have an Ambassador in any
foreign country unless you exercise that essential power of sovereign-
ty which Canada does not possess . . . When the time comes for
Canada to take the decisive step which shall lead her to nationhood,
I for one shall stand for Canada as a kingdom — with a member of
the British Royal Family as King." In closing the debate Sir
Robert Borden re-stated the new constitutional theory which had
of late come to the front and which involved so much that did not
appear on the surface: "In each Dominion the King acts only upon
the advice of his Ministers for that Dominion."
Meanwhile, the 1921 general discussion of the subject had
been varied. Mark Sheldon, the retiring Australian Commissioner
to the United States, stated at New York on Jan. 6 that he thought
the British Ambassador should speak on behalf of and represent
the whole British Empire; E. C. G. Page, Leader of the Country
Party in the Australian Parliament, urged the appointment of a
Minister of the Crown as High Commissioner in London. The
Toronto Globe of Apr. 23 supported the Government's posi-
tion in the matter as did the Calgary Albertan and the Victoria
Times — all Liberal — while the Edmonton Bulletin opposed it;
the United States press continued to be unanimous in favour of the
policy and the New York Sun of Apr. 26 declared such an appoint-
ment in the best interests of the British Empire as well as of Canada.
In addition to names first suggested for the post those of Sir Joseph
Flavelle, C. A. Magrath, Lloyd Harris and Lord Shaughnessy were
proposed. Nothing definite was done, however, and on May 26,
144 THE CANADIAN ANNUAL REVIEW
in a New York speech, Sir Auckland Geddes still was able to refer
to himself as "the Ambassador of your close neighbour, Canada;
the Ambassador of Australia and South Africa and of Colonies
and islands in every continent and in every sea, as well as of the old
Home Land." British newspapers were restricted and guarded in
their comments and only a few extreme Radical journals of the
Manchester Guardian type supported the idea; Sir George Parkin
in one or two addresses opposed it as did the Canadian Gazette and
Canada, journals published in London; a correspondent of the New
York Tribune (P. W. Wilson, CX-M.P.) on Dec. 1 1 stated that Ire-
land would, of course, demand a similar right with new and easily-
understood complications.
Conditions in the United States during 1921 made
R increased Tariff rates inevitable. High Protection
Son* of had alwaYs been and sti11 remained the platform of the
Canada and Republican party — which, in 1920, had re-affirmed its
the United belief in the Protective principle and pledged itself to
States; «a revision of the Tariff for the preservation of the
TariffBiils home market for American labour, agriculture and
and industry " ; it became once more, in 1921, the dominant
Reciprocity power in Senate and House and Presidential chair;
Conditions there was a serious business depression and, especially,
in Agriculture, with low prices out of proportion to
costs of production and prices of other products.
So bad was the position that on Aug. 24 President Harding
approved a law which empowered the United States Government
to lend $2,000,000,000 for the purpose of financing the farmers and
dealers in farm products — to enable them (1) to withhold products
from the market until prices improved, and (2) to aid farmers in
extending the time on money already borrowed for agricultural
purposes and to obtain more if needed. The money was lent to
the Banks through the Government's War Finance Corporation,
and thence to the individuals concerned. It was claimed at this
time, also, that 12 leading countries — including Italy, France,
Belgium and Argentina — had advanced their tariffs during this or
the preceding year as high in some cases as 300 per cent.; it was
alleged that higher duties were essential to protect the factory and
the farm from floods of imports sent by countries where wages
averaged 30 cents a day and whose exchange ran at incredibly low
figures with extreme under- valuations of invoice.
In his pre-election speeches Mr. Harding had indicated in-
creased duties upon all farm products and especially from countries
such as Canada and the Argentine; in the first Tariff Bill introduced
by Congressman Joseph W. Fordney, Chairman of the Ways and
Means Committee, late in 1920, as a preliminary fiscal presentation
of Republican policy under a Democratic President, wheat was to
be 35 cents a bushel, corn 14 cents, potatoes 25 cents, cattle 30
per cent, ad valor urn, sheep $2.00 per head and washed wool 30
cents a pound. Canada s reception of this proposed policy was not
FISCAL RELATIONS AND THE AMERICAN TARIFF BILLS 145
cordial and in a few cases hinted at retaliation; the New York
World gave the Democratic view of the legislation as it touched
Canada by describing the Dominion as in a position to hit back
because she could get most of the manufactures now bought in the
United States from Great Britain, and because a strong Preferential
tariff in favour of the Mother Country could not fail to hit the manu-
facturing industry of the United States a staggering blow. The
retaliatory attitude was very slightly expressed in Canada, how-
ever, and nowhere with authority or official force.
The nearest approach to this was the remark of Sir James
Lougheed, Minister of the Interior, in the Senate on Feb. 16 that:
"There are only two courses to pursue, one is to make this country
dependent entirely upon the producing and manufacturing interests
of the United States; or the building up of our tariff walls to meet
whatever hostile conditions the United States may impose against
us." The House of Representatives with a Republican majority,
passed the Bill, the Senate, through the defection of certain Demo-
crats, passed it on Feb. 16 by 43 to 30; on Mch. 3rd President Wilson,
as expected, vetoed it and the whole policy went to the electorate
under the ensuing banner of W. G. Harding. Mr. Wilson stated
in his Message that this was no time for the erection of high tariff
barriers: "It would strike a blow at large and successful efforts
which have been made by many of our great industries to place
themselves on an export basis. It would stand in the way of
normal re-adjustment of business conditions throughout the world,
which is vital to the welfare of this country as to that of all the
other nations. The United States has a duty to itself as well as to
the world, and it can discharge this duty by widening, not by con-
tracting, its world markets." As to Canada: "The price of wheat
is a world price, and it is a matter of little moment whether Can-
adian wheat goes directly into the markets of other countries of the
world, or indirectly through this country." The position of trade
between the two countries at this juncture, and before the War,
showed a 1914 (Mch. 31) total of $396,302,138 in Imports by
Canada from the U.S. and for 1920 $801,097,318; in Exports from
Canada to the U.S the 1914 total was $176,948,299 and in 1920
$501,130,117. In detail *the Chief Canadian imports from and
exports io the U.S. in these years may be summarized as follows:
I IT
Articles
Iron and Steel Products
tports from I
in Millions
of Dollars
1914 1920
$113 $182
47 60
17 68
13 28
29 41
21 22
12 28
2 22
1 23
6 22
J.S. E,
Articles
Pulp and Paper
:ports to
in Milli.
of Dolh
1914 19
$15
20
7
8
- 2
7
9
2
1
2
U.S.
yns
irs
20
$82
71
14
48
27
2
17
12
7
8
17
Coal
Cotton and Products
Petroleum and Products
Lumber.
Wheat
Non-ferrous Metals and Products.
Wood and Wood Products exclud-
ing paper
Iron and Steel Products
Sugar
Fish and Fishery Products
Fruits
Wool and Products
Asbestos . .
Sugar and Products
Meats
Grain and Breadstuffs
Furs
*Note. — Compiled in Monthly (April, 1921) Letter of the Royal Bank of Canada.
6
146 THE CANADIAN ANNUAL REVIEW
The U. S. Emergency Act of 1921. The effect upon Canada
of the proposed Fordney legislation seemed obvious; it was described
as far more serious than either the McKinley or Dmgley tariffs.
From a foreign trade in its infancy, Canada had grown into
second largest customer of the United States. The effect in Canada
was anticipated as little short of disastrous by farmers and cattle-
men alike; Canadian comment, however, was surprisingly restrain
ed and there was little expression of the feeling so vigorously shown
in the time of preceding Tariff increases; George Lane, the Westen
ranchman, backed by theToronto Globe, urged business representation
at Washington as to the effect of unduly high duties upon trade.
Meanwhile, George M. Young, Congressman from North Dakota,
had introduced in the House at Washington (Apr. 11) the Emerg-
ency Tariff Bill which was to be law for six months pending the
passage of a permanent Republican tariff revision. It was, practically,
the Fordney Bill as vetoed by President Wilson. The Report
recommending the measure stated that revival of business was
dependent upon restoration to the farmers of their lost purchasing
power; that the "paralysis" of agriculture had not forced a reduc-
tion in prices of commodities which the farmers must buy; that
the proposed course would have the effect of advancing retail prices
of foreign food products which had been and were being brought in
at a lower basis of cost, and were being sold at prices lower than
those for which the home products could be sold.
An Anti- Dumping measure accompanied the Tariff clauses
and the Bill passed the House without change on Apr. 15 by 269 to
112. It passed the Senate on May 1 1 by 63 to 28. A Conference
report from the joint Committee of the two Houses was approved
and the Bill was signed by President Harding on May 28 when it
at once went into operation. The provisions against "dumping"
were drastic with punitive duties equal to the difference between
the price at which merchandise was offered and the foreign market
value. Elaborate provision was made for ascertaining foreign
costs and foreign market values as a basis for the administration
of this section of the Act. The Secretary of the Treasury could
put the "special dumping duty" into effect whenever he found an
industry in the United States was being or was likely to be injured.
Other features provided that export values were to be a minimum
basis for the assessment of duties and that the values of foreign
moneys were to be ascertained and certified daily by the Federal
Reserve Bank of New York.
In the main, the changes affected agricultural products and,
of course, touched Canadian interests seriously as heavy duties
were imposed upon many articles then on the free list, such as meat
(all kinds), milk and cream, potatoes, live-stock, wheat and wheat
flour— with increased duties on butter, cheese, apples, and flax seed.
There were also the anti-dumping provisions, the enforcement of
which would from time to time affect Canada while control over
dye importations, originally a war measure, was continued The
total value of the products exported in the fiscal year to Mch 31
FISCAL RELATIONS AND THE AMERICAN TARIFF BILLS 147
921 from Canada to the United States and affected by these
hanges was $167,230,678.
During the debates in the two Houses at Washington, Canada
as frequently referred to. Senator A. O. Stanley of Michigan
(May 22) stated that: "From 1910 to 1920, inclusive, Canada
exported to the United States 58,468,248 bushels of wheat. During
the same period she imported from us 50,406,748 bushels of wheat,
leaving a net excess for the ten-year period of 8,061,503 bushels.
That 8,000,000 bushels, annually, could disturb the general level of
prices on six or seven hundred million bushels of American wheat, is
inconceivable. I maintain that at this time we are infinitely more
in need of Canadian raw materials than of her markets; that we
receive a greater benefit from the things we buy than from those we
sell." In detail the changes affecting Canada were as follows :
Old Rate New Rate
Commodity Underwood Tariff Emergency Tariff
Wheat Free 35c per bus.
Wheat flour and Seminola Free 20% ad val.
Flaxseed 2Qc per bus. 30c per bus.
Corn Free 15c per bus.
Beans, not specially provided for 25c per bus. 2c per bus.
Potatoes Free 25c per bus.
Onions 20c per bus. 40c per bus.
Cattle 10% ad val. 30% ad val.
Sheep 10% ad val. $l-$2 per head
Fresh or frozen beef, veal, mutton, lamb
and pork Free 2c per Ib.
Meat not specially provided for Free 25% ad val.
Woo!:
Unwashed Free 15c per Ib.
Washed Free 30c per Ib.
Scoured Free 45c per Ib.
Woolen Manufactures Various 45c per Ib. add'l.
Butter and substitutes 2Uc per Ib 6c per Ib.
Cheese andsu bstitutes 20% ad val. 23% ad val.
Fresh milk Free 2c per gal.
Cream Free 5c per gal.
Condensed milk Free 3c per gal.
Sugar of milk Free 5c per Ib.
Wrapper tobacco:
if unstemmed $1 .85 per Ib. $2.35 per Ib.
if stemmed $2.50 per Ib. $3.00 per Ib.
Apples lOc per bus. 30c per bus.
Cherries lOc per bus., Ic a Ib. 3c per Ib.
or free
In dealing with the Bill the Farmer's Sun (Apr. 23) pointed out
some bright spots; even the McKinley Act of a generation before
while it destroyed Canada's barley trade had immensely stimulated
its dairy industry. It was stated that wheat would still be able to
enter the United States and be milled for export, whereupon the
duty would be refunded and American flour (made largely from
Canadian wheat) would still be able to enter the British market.
Steep duties on cattle would shut Canadian animals out of that
market, but the British demand should ease the situation. The
first effect of this legislation in Canada was the postponing of Tariff
revision by the Meighen Government until a permanent policy
had been established in the United States ; another was the claim of
Liberals and Agrarians in the General Elections that this Tariff
would never have been imposed if the Reciprocity agreement of
1911 had been accepted; a third was the urgent effort made by
Dominion and Provincial Governments to obtain removal of the
148 THE CANADIAN ANNUAL REVIEW
British embargo upon live cattle and the starting of an agitation
in England to that end.
Following the operation of the new Tariff, various incidents
showed its effect in Canada. Calgary, in nearly 3 months, shipped
two car-loads of cattle to Chicago or 5 per cent, of the usual ship-
ments; steers in Alberta dropped from $7.75 to $5.25 and cows
from $6.25 to $4.00; cattle exports to the United States were falling
in any case, with a total of 415,956 head for the year ending Mch.
31, 1920 and 221,278 in 1920-21; the new Tariff accelerated the
process while greatly reducing the prices paid to Western farmers.
In the four months of June-September, 1921, compared with the
same months of 1920, the exports of Canadian cattle to the United
States had declined from $7,421,708 to $835,982; so with sheep,
from $635,665 to $225,692; of wheat from $4,456,773 to $3,069,268;
of wheat flour from $1,059,697 to $119,224; of wool from $716,620
to $2,948; of butter from $1,907,303 to $109,047; of fresh and frozen
meat, from $2,677,768 to $1,066,758; of fresh, preserved and con-
densed milk from $1,882,612 to $182,903; potatoes from of $1,060,198
to $159,475.
The Toronto Globe (Nov. 10) indicated the general result as
follows: "The Emergency Tariff has succeeded in almost excluding
every Canadian farm product, except wheat. Minneapolis millers
need Canadian hard wheat for mixing, and the duty of 35 cents a
bushel is paid by the United States consumers of flour, including
the wheat growers themselves. The Tariff has ludicrously failed
to do the thing which it was specially designed to do — raise the
prices of farm products. Prices have continued falling, and wheat
is back to the pre-war level. The market for foodstuffs is in the
grip of world forces which Customs legislation cannot control or
deflect." The process continued and for November, 1921, the
value of Canadian exports to the United States, affected by this
Tariff, was $8,528,963, as compared with $31,288,398 for the cor-
responding month of 1920; for the six months' period of June-
November $25,928,059 as compared with $93,454,442. As -to
United States trade its Exports decreased during 1921 by one-half
or from $8,228,016,307 in 1920 to $4,485,122,696 in 1921; its im-
ports were $2,509,025,403 compared with $5,278,481,490 in 1920.
According to U.S. returns its Imports from Canada were $611,863,-
170 in 1920 and $335,441, 004 in 1921.
The Proposed Permanent U. S. Tariff. Following the en-
actment of the Emergency Tariff, J. W. Fordney, on June 29,
introduced the new Fordney Bill which was intended to be the
fiscal policy of the Harding Administration crystalized into law.
The preamble described it as "a Bill to provide revenue, to regulate
commerce with foreign countries, to encourage the industries of the
United States, and for other purposes." It was to be the Repub-
lican amendment to the Democratic (Underwood) Tariff of 1913
with a general range of higher duties and the inclusion of most of the
increased agricultural and other rates of the Emergency Bill. One
FISCAL RELATIONS AND THE AMERICAN TARIFF BILLS 149
section empowered the President, under certain limitations, to
place higher duties than those set forth in the proposed measure
against any countries imposing what might be regarded as unreason-
able duties on commodities exported to such countries from the
United States. A further section gave the President power to
conclude trade agreements with foreign countries within a period of
three years of the signing of the Bill, and for this the approval of
Congress was not required. In such treaties the President could
reduce duties 20 per cent, below the rates fixed in the Bill in ex-
change for similar concessions; agreements concluded under the
provisions of this section would remain effective for a period not
exceeding five years.
In addition to these bargaining provisions, there were certain
items in the Tariff — such as those touching lumber, paper, pulp,
pulpwood, automobiles, and coal — the treatment of which turned
on that accorded similar products in other countries. In many of
its details the new Tariff resembled the Payne-Aldrich enactment
of 1909; there were some modifications from the Emergency Act
with a duty on live cattle 2 years old and upward not absolutely
prohibitive and running to l1/^ cents per Ib. or $15 on a 1200-lb.
steer instead of $28.80 under the existing rates; wheat was reduced
to 25 cents per bushel and butter increased to 8 cents per Ib. and
the duties on eggs and onions also were raised. The wheat rate was
more satisfactory to Canada and represented, roughly, an ad
valorum customs tax of 14J/2 per cent, under which, as the Toronto
Globe of July 1st, put it, "the Canadian wheat-grower could still
afford to sell wheat in the United States, duty paid, taking his
returns in American funds, and would probably net as much as on
wheat exported direct to Europe, which must pay heavy freight
rates." The Bill, of course, was very wide and far-reaching; it
removed many articles from the old Free List but left a large number
still free of duty, including print-paper, wood pulp, leather and
harness and agricultural implements; it increased the duties on the
great bulk of imports already taxed, and it made no notable addi-
tions to the free list.
Opinion in Canada was not vehemently expressed at the pro-
posed permanence of these higher duties though resentment cer-
tainly was felt; no Canadian journal used such language as did the
Democratic minority Report in Congress which described the Bill
as declaring "a savage commercial war upon the whole human
family," as "irredeemably, universally vicious," and as marking
"the establishment by the United States of an economic boycott
against the civilized world." As study was made of the details
Canadian comments became rather more keen and the Ottawa
correspondent of the Financial Times wrote (July 16) that "on
last year's trade figures, nine-tenths of the total value of our farm
exports to the United States are affected. Instead of the duties
being increased on 20, they have been increased on 40 items of farm
produce. First reports indicated that only fresh fish was affected;
it really looks as though, if the Bill goes through, nine-tenths of our
150 THE CANADIAN ANNUAL REVIEW
exports of fish to the United States will be hit. Manufactured, or
semi-manufactured, products, will also be more affected than had
been imagined." The Department of Agriculture at Ottawa, late
in July, issued a statement showing that $27,229,237 of duties
would be levied on 12 articles of Canadian farm produce; the De-
partment of Fisheries stated that $15,950,825 exports of Fish (1920)
would bear a burden of $1,762,000 in duties with practically every-
thing taxed; statistics elsewhere published claimed that duties
would be increased upon $225,000,000 of Canadian exports.
On July 21, with finished lumber, hides, leather, shoes, oil and
cotton on the free list, the dye embargo knocked out, and the
American valuation provision retained, the Fordney Tariff Bill
passed the House by a vote of 287 to 127. The Senate then took
up the discussion and one of the chief items of controversy was the
valuation clause by which, instead of using the foreign selling price
as the basis of computation for ad-valorum duties, it was proposed to
compute the duty upon the "wholesale selling price" at which
similar domestic merchandise was sold in the principal home
markets of the United States, or, when no similar goods were made
there, upon the wholesale selling price of articles with which it
could be compared. The proposal was vigorously opposed in
many directions upon the ground that such action would decrease
imports, exports and revenue alike and increase depression, un-
employment and cost of living; the New York Tribune (Rep.)
took a notable stand against it.
A strong protest was made by a Sheffield delegation of English
steel industries against those duties being made prohibitory.
The Hon. L. A. Taschereau, Premier of Quebec, stated on Aug.
8th that: "Someone at present is laying the foundation of a Chinese
trade-wall between the United States and Canada. It is not being
built from this side of the boundary. This wall threatens to put
an end to all trade relations of the two countries." The Grain
Growers' Guide of Winnipeg (Oct. 5) stated that $172,417,955
worth of export trade in the 1920-21 fiscal year would largely be
lost to Canada; the Winnipeg Free Press (July 11) declared that if
these duties were made permanent "irretrievable damage" would be
done to Canadian- American trade and that there would be a "na-
tural resentment which will find expression in disinclination by
individuals to buy United States goods or to cultivate trade rela-
tions with a country of so fitful, uncertain and jealous a trade
temperament."
Reciprocity Conditions in 1921 . They were not very favour-
able and the issue was still unpopular in the Bast. But in the
House of Commons at Ottawa on Aps] 13 the Hon. W. S. Fielding,
father of the effort to bring about Reciprocity in 1911, seconded
by Hon. Mackenzie King, placed the Liberal policy again on record
and stood by the principles of the past in the following Resolution :
In the opinion of the House the Government should bring in a
measure to approve, ratify, and confirm the Agreement respecting
FISCAL RELATIONS AND THE AMERICAN TARIFF BILLS 151
Reciprocal trade between the United States and Canada signed at
Washington on the 21st day of January, 1911, by Hon. P. C. Knox
on the part of the United States, and by Hon. W. S. Fielding and
the late Hon. William Paterson, on the part of Canada, which
Agreement remains on the statute book of the United States."
Mr. Fielding pointed out the situation at Washington, the pending
restrictive Tariff legislation, the great desirability of friendly trade
relations and the dangers of a different condition. He claimed that
as the Reciprocity offer was still a statutory one, Canada was
justified in assuming that it was open for adoption.
Sir Henry Drayton, Minister of Finance, agreed as to the need
for cordial relations between the two countries but did not think it
was wise or useful to try and force the hands of the United States
over the old Agreement ; he also was opposed to any talk of retalia-
tion as Americans were merely conducting their own business in
their own way. The Canadian tariff should be regulated with
regard to Canada's own best interests. Dr. Michael Clark was
spokesman for the Progressives at the request of Mr. Crerar and
he supported Mr. Fielding's motion ; the restoration of international
trade was, to him, the vital question of the day; Reciprocity would
provide larger markets for Canada's natural resources. W. F.
Cockshutt (Cons.) claimed that the Canadian market was better
than the American market and prices for farm products in Canada
were higher than in the United States. Others spoke and the
Resolution was defeated by 100 to 79 with the Progressives voting
solidly for the motion. Some of the American duties upon Can-
adian products under the various Tariffs of this period — and the
191 1 Reciprocity agreement — were as follows. :
Article
Payne Recipro- Under- Emerg- Fordney
Tariff city wood ency Bill as
of Agreement Tariff Tariff in before U.S.
1909 1911 1913 force 1921 Senate
Cattle „ $2.00 or $3.75
per head or
27^% Free
Horses -...$30. per head or
25% Free
Swine $1.50 each Free
Sheep and Lambs 75c each or $1.50 Free Free.
Meats, Fresh 1 HC per Ib 1 Me per Ib Free..
Bacon and Hams. 4c per Ib 1 J^c per Ib Free
Meats, Salted 25% 1 ^c per Ib
lc per Ib. or 1 Vic
Free 30% per Ib.
Not specified $30 per head or
..10% 20%, He
..Free Not specified HC per Ib.
...Less than one
year old, $1.
per head. One
year old and
over, $2.00
per head
....2c per Ib
.25
lc per Ib.
2c or 1
per Ib.
Wheat 25c per bus Free
Wheat Flour 25% 50c per bbl
Corn 15c per bus Free
Beans 45c per bus Free
Potatoes 25c per bus Free
Milk, fresh 2c per gal Free
Cream, fiesh 5c per gal Free
Milk.creamcondensed 2c per Ib 2c per Ib
Butter ocperlb Free
Cheese 6c per Ib Free
...Free 25<
...Free from Canada
35c per bus 25c per bus.
...Free from
Canada 20% 50c per 100 Ibs.
....Free 15c per bus..,.15c per bus.
...25c per bus....2c per Ib 1 MC per Ib.
...Free from
Canada 25c per bus....42c per 100 Ibs.
...Free 2c per gal lc per gal.
...Free 5c per gal 5c to lOc per gal.
...Free 2c per Ib lc or 1 HC per Ib.
....2 J4c per Ib 6c per Ib 8c per Ib
...20% 23% 5c per Ib. or 25%
152 THE CANADIAN ANNUAL REVIEW
The strong Protective feeling of the American farmer was much
in evidence at this juncture. The Republican party sentiment
seemed opposed to all Reciprocity and Congressman George M.
Young, North Dakota, author of the Emergency Bill, voiced this
feeling at Washington on Apr. 14, when he said in reference to the
Ottawa debate: "Even if the Canadians passed such an Agreement,
we can repeal the one (1911) now on our statute books. We have
the power to do that, and we would be justified in doing it. I do
not think it could be termed a breach of faith, inasmuch as after
we passed our part of the Agreement, Canada wasted years and
years without acting. It would be a little too late for her to act
now." The farmers of the United States were in pretty deep
water and trade was decreasing by millions in a week while manu-
facturing and commercial failures during 1921, as a whole, were
double in number and nearly three times in amount over the 1920
figures — 19,652 and $627,401,883 (Dun's) compared with 8,881
and $295,121,805. In the States at this time the Workingmen's
Protective Tariff League of Missouri, Kansas, Oklahama, and other
States supported the Farmers' insistent advocacy as to Protection.
On the other hand, the Canadian Farmers stood out clearly,
and in organized form, for freer trade and Reciprocity and voted
accordingly in the 1921 elections. The views held by Western
organizations were voiced in the Grain Growers' Guide of May 25 :
"The old Reciprocity Agreement of 1911 still remains upon the
American statute books, and its acceptance would save Canada
from the danger of having her grain, livestock and potatoes shut
out of the great southern market." Again, on June 1st, this
journal declared that: "It was the Republican party in the United
States that agreed to Reciprocity with Canada. That party is in
power again, and there is a much stronger low tariff feeling in the
country than there was in 1911. It is time for the renewal of a
movement for better trade relations with our great neighbours."
The wheat exports of Canada to the United States, which the new
American tariff seriously affected, were reviewed at this time by the
Canadian Council of Agriculture as follows :
1915 4,092,026 bushels valued at ... $4,223,505
1917 18,200,283 bushels valued at .. 23,736,060
1918 23,537,501 bushels valued at .. 53,561,585
1920 6,661,588 bushels valued at 14 000 932
1921 42,324,894 bushels valued at 91,442,298
This was, indeed, one of the special issues of the Agrarian
party in the Elections. On Sept. 9 Hon. J. A. Maharg, Saskatche-
wan Minister of Agriculture, told the press at Regina that: "The
greatest need of the cattle industry is to have the United States
market restored to us. The present situation is one which should
engage the serious thought of every farmer in the Province and
every effort should be made to see that Canada negotiates a trade
treaty with the United States which will give us the right to sell
our unfinished cattle in that market as we have been doing for years
past, xxx Western Canada sells a lot of livestock which is not
marketable in Europe, but would be in demand in the United States
trade were it not for tariff restrictions."
INTERNATIONAL JOINT COMMISSION; THE ST. LAWRENCE PLAN 1 53
G. H. Hutton, President of the Western Canada Live Stock
Union at Regina on Dec. 13 urged Reciprocity: "I see no loss of
dignity or no sacrifice of patriotism on the part of Canadians if we
make representations to the United States at this time looking to
more favourable reciprocal trade arrangements with that country.
The permanent Tariff Bill now being discussed at Washington gives
to the President power to negotiate and this provision is specially
designed to make possible somewhat flexible trade relations with
this country. Let us meet the situation at least half-way." Dur-
ing the Elections the Opposition (Liberals and Agrarians) made
much of the claim that had the Reciprocity pact of 1911 been in
existence there would have been no lofty duties in 1921 against
Canada; the reply was, of course, that the Agreement could by
this time have been set aside by Congress in response to public
demand. At the close of the year Hon. J. W. Fordney of U.S.
Tariff fame, stated* that:
Canada and the United States should be absolutely a unit on tariff policies.
The standard of living is the same in both countries; we don't intend to let it
slump back to 30 cents a day for farm or factory. Canada is one of our best
trade neighbours in the world and we intend to keep her as such. It was largely
with a view to Canadian imports that we inserted our plan of valuation at United
States ports. When these provisions were being drafted in Committee, more
frequent reference was made to Canada than to any other country. The Com-
mittee recognizes that wages and production costs in Canada are more nearly
equal to those in the United States than elsewhere in the world. It is also recog-
nized that Canada has purchased large quantities of American goods. In regard
to trade treaties between the United States and Canada, it is difficult for me to
predict what kind of treaty might be acceptable to the two countries. I do not
believe however, that the proposal of 1911 would be satisfactory to-day.
This Canadian- American Tribunal received much
tionainjoint " attention during the year from international publicists
Commission; as an evidence of what might be done in promoting
St. Lawrence friendly relations between two neighbouring peoples.
Power and It was, also, the centre of discussion as to the great
Pr°Ject of an international deepening of the St. Law-
rence and development of its Power resources. Created
by a Treaty between Great Britain and the United States on Jan.
11, 1909, it consisted of three Canadian members appointed by the
King on recommendation of the Canadian Government, and
three Americans appointed by the United States President. There
were two Secretaries and the Canadian Chairman presided at
meetings in Canada, the American Chairman at meetings in the
United States; there were permanent offices at Ottawa and Wash-
ington. Its powers under specific Articles of the Treaty were,
broadly, as follows :
III. No uses, obstructions and diversions, whethet temporary or permanent,
of boundary water on either side of the line dividing Canada from the United
States, affecting the natural level or flow of Boundary waters on the other side of
the line, to be made by either of the High Contracting Parties without the
approval of the Commission.
*Note— Mac Lean's Magazine, To. onto, Jan. 1, 1922.
154 THE CANADIAN ANNUAL REVIEW
IV. The construction or maintenance on their respective sides of the
Boundary of any remedial or protective works or any dams or other obstructions
in water flowing from Boundary wateis or in waters at a lower level than the
Boundary in rivers flowing across the Boundary, the effect of which is to raise
the natural level of waters on the other side of the Boundary, to also be ap-
proved by the Commission.
X. Any questions or matters of difference raised between the High Con-
tracting Parties involving the rights, obligations, or interests of the United States
or of the Dominion of Canada either in relation to each other o*- to their respective
nhabitants to be referred for decision to the Commission by the consent of the
two parties. In these cases the Commission was authorized to examine into and
report upon the facts and circumstances of the particular questions and matters
referred, and the majority had power to render a decision or finding upon the
questions or matters submitted.
In cases of inability to reach a decision reference was to be made to an
Umpire under the Hague Tribunal conditions of 1907.
The genesis of the Commission dated back to the International
Irrigation Congress held at Denver, U.S. in 1894, when J. S. Dennis
of Canada carried a Resolution urging upon the United States "the
appointment of an International Commission to act in conjunction
with the authorities of Mexico and Canada in adjudicating the
conflicting rights which have arisen, or may hereafter arise, on
streams of an International character." In 1896 the Canadian
Government passed an Order-in-Council approving these principles
and took the matter up with the U.S. Government; in 1902 con-
current legislation created the International Waterways Commis-
sion— an investigating body without final jurisdiction or powers;
in 1907-8 negotiations between Mr. Bryce, British Ambassador, and
Mr. Root, Secretary of State, resulted in the 1909 Treaty which was
approved by the Canadian Parliament in 1911.
The 1921 members of the Commission were C. A. Magrath,
H. A. Powell and Sir W. H. Hearst, for Canada, and Obadiah
Gardner, R. B. Glenn and C. D. Clark for the United States.
Lawrence J. Burpee of Ottawa was the Canadian Secretary from
the inception of the body. Early in March President Wilson asked
for Mr. Gardner's resignation and appointed W. B. Wilson, U.S.
Secretary of Labour; shortly after his installation President Harding
reversed matters and re-appointed Mr. Gardner. During Sep-
tember the Commission met at points in Montana, and then in
Alberta and Saskatchewan, to deal with the complicated issues in-
volved in Irrigation projects affected by the Milk and St. Mary's
Rivers and their tributaries in the State and Provinces mentioned.
The 1909 Treaty provided that these rivers and then- tributaries
should be equally divided for purposes of irrigation and power be-
tween the two countries. The United States contention now was
that only the water which flowed across the International boundary
should be so divided; Canada contended that all the water of the
two rivers and all of their tributaries should be taken into considera-
tion in making the division. Both of the rivers rose in Montana
and flowed across the boundary into Alberta but, while the St.
Mary emptied into the Saskatchewan, the Milk, after a course of
more than 100 miles in Alberta, recrossed the boundary into
Montana and flowed into the Missouri. The Dominion and Pro-
INTERNATIONAL JOINT COMMISSION; THE ST LAWRENCE PLAN 1 55
vincial Governments, the C.P.R. and various Irrigation bodies were
concerned in the issue and a settlement was announced at Ottawa
on Oct. 4th by Hon. O. Gardner as U.S. Chairman which, he de-
clared, was unanimous; under its terms an equitable decision was
arrived at.
Canadian Water-Powers and Waterways. The questions
associated with the Commission were closely related at times to
water powers and electric power development. The recorded
Power available throughout the Dominion, under conditions of
ordinary minimum flow and within certain limitations was, in 1921,
officially stated at 18,255,000 h.p. The water power available under
estimated flow for maximum development, and dependable for at
least six months of the year, was estimated at 32,076,000 h.p.
There were installed throughout the Dominion water wheels and
turbines totalling 2,471,000 h.p. During 1920 about 560,000 h.p.
was either installed or under construction at the close of the year;
the Water Power Branch at Ottawa estimated that there was a
possible turbine installation available of 41,700,000 h.p. It also
was stated that the water-power already developed in Canada
represented an investment of $475,000,000 or an annual equivalent
of 18,500,000 tons of coal which, valued at $8.00 per ton, was
$148,000,000. As to Provinces, Ontario had 5,800,000 of Power
available, Quebec 6,000,000 h.p., Saskatchewan 3,000,000, British
Columbia 3,000,000 and the others small amounts of under a
million h.p.
In the Commons on Apr. 1 8 Mr. Lemieux brought up the appli-
cation of the Chicago Sanitary District for the right to divert
10,000 cubic feet of water per second from Lake Michigan. He
moved for the production of all correspondence between the Can-
adian and United States Governments on the subject and declared
that the object of the "enterprising promoters" of the Canal was
to divert Western trade toward the Mississippi. He quoted evi-
dence of engineers to show that this proposal would lower the St.
Lawrence Channel by 10}^ inches, and would reduce the carrying
capacity of ships. The advocates of the Chicago project had said
that they would construct compensating works to protect Canadian
interests, but he declared that authorities were agreed that no
compensating works would give back to Canada what she would lose.
Mr. Premier Meighen said that no consent or even acquiescence
had been given by Canada to this diversion of water; it would, he
believed, mean a lowering of the level of the Great Lakes and of the
St. Lawrence and entail both reduction of water and power. The
Premier stated that the U.S. Secretary of War had granted an
application for 4,900 cubic feet but, as a matter of fact, the Sanitary
Canal authorities had already diverted more than 9,000 cubic feet.
The Canadian Government had protested as strongly as possible,
as the correspondence would prove when it was brought down.
There was no disposition to refuse the necessary supply of water for
the Chicago Drainage project until new works could be installed,
156 THE CANADIAN ANNUAL REVIEW
but the Canadian Government had made it clear that the rights of
other water users lower down must not be interfered with. The
motion for papers was agreed to.
The great importance of these waterways — in a national,
Imperial and international sense — was manifest. From Belle
Isle to Montreal it was 1,003 miles and thence to Port Arthur or
Fort William 1,214 miles; from Liverpool to the head of the Great
Lakes it was 3,974 miles or only 808 miles longer than from Liver-
pool to New York. Montreal had become the second largest port
on the Continent and, though the system of Canals in the St.
Lawrence from Montreal to Lake Ontario only permitted vessels
of approximately 250 ft. in length and 14 ft. draught passing
through them, the Canadian Government was completing its new
Canal between Lake Ontario and Lake Erie, which would be 25
miles in length, with 7 locks, and a depth of 25 ft. and this could
easily be increased to 30 ft. According, also, to the Lake Carriers'
Association in its annual report for 1920, 58,527,226 tons of iron-
ore were carried in that year over these waterways — an average of
8,500 tons per cargo. Since 1854 more than one thousand million
tons of iron ore had been carried on the Great Lakes.
Plans for Deepening and Developing the St. Lawrence. The
International Joint Commission in its study of this question, under
authority of the Governments of Canada and the United States, had
many schemes submitted to it. In a general sense the waterway
immediately concerned extended from Prescott, Ont. and Ogdens-
burg, N.Y., to Montreal, a distance of 120 miles and the horse-
power on the St. Lawrence was estimated at 5,000,000 though vary-
ing amounts of this were involved in the plans discussed. W. A.
Bowden and W. P. Wooten, Engineers, respectively, for the above
Governments, submitted a Report early in 1921 favourable to a
general deepening of the Waterway from an engineering point of
view; they suggested a scheme which included 9 locks, a 33-mile
canal, 25 feet of depth, and 1,464,000 h.p. at a cost of $252,000,000.
Under this plan the waterway would consist of a combination
of lake, river, canal and locks, and power and navigation dams —
two of the important canals having a width of 300 feet. The
scheme, it was said, would accord with the regulation of desirable
levels in Lake Ontario and in the St. Lawrence River, and permit
an increased flow in the latter during low- water periods. The
principal power plants would be at Lake St. Louis, and at Morris-
burg and Iroquois, and the proposal was that the cost of the project
should be divided between the United States and Canada. It was
claimed that the revenue from the power alone would pay for the
entire project in a few years. H. L. Cooper & Co., an engineering
firm, and it was said, on behalf of private interests and capitalists,
presented in May an elaborate estimate of costs under private con-
struction. It was proposed to do the Canalization at a cost of
$60, 000, 000 divided between the two Governments, with a 30 foot-
channel and the immediate development of 1,000,000 horse-power
delivered to consumers, exclusive of taxes, at $17 per h.p.
INTERNATIONAL JOINT COMMISSION; THE ST. LAWRENCE PLAN 1 57
The first installation, it was proposed, would be on the Amer-
ican side, and would supply 400,000 horse-power — 50,000 to be
available for distribution in Canada. When the demand exceeded
this quantity, construction on the Canadian side was to commence.
The ultimate electrical energy that could be produced was stated to
be 6,625,000 horse-power which would replace 66,250,000 tons of
coal annually. The cost of the Navigation and Power develop-
ment combined was estimated at $1,500,000,000. The only ex-
pense to Governments involved was claimed to be in the preliminary
Canalization of $60,000,000: "We seek an opportunity to finance
and construct approximately 1,000,000 horse-power of capacity for
use in Canada and the United States at costs to the consumers that
will be foreknown and guaranteed, and on terms that do not call for
Governmental aid, except for the navigation facilities, in which
practically all of the people of both countries are interested."
G. S. Williams of Ann Arbor, on behalf of the Great Lakes and Tide-
water Association, proposed a scheme which included 9 locks, 7
dams, 4,000,000 h.p. at a cost of $750,000,000 — the latter plan
involving an expenditure of $300,000,000 for navigation purposes
and $450,000,000 for developing the horsepower.
The Hydro- Electric Commission of Ontario (Nov. 14) placed
before the Commission plans prepared by F. A. Gaby, R. S. Lea
and H. G. Acres in three distinct proposals — without final state-
ments of cost. The first was similar to that of Messrs. Bowden and
Wooten with a control dam at Morrisburg to protect the levels of
Lake Ontario and regulate the flow of the River ; the 2nd provided
for what was known as double development, and included two series
of dams and power-houses, with particular concentration at the
Long Sault and a lesser concentration at Morrisburg; in the third
details were very similar to No. 2. U.S. Connolly, representing the
New York and Ontario Power Co., Waddington, N.Y., presented
plans providing for a series of dams from Waddington to Morris-
burg, Ont., developing 660,000 horsepower, with a second series
of dams at the Long Sault developing 1,000,000 horsepower; the
first development was placed at $36,000,000 and the second, ap-
proximately, at $65,000,000.
While receiving and considering these and other plans the
Commission was meeting at various points in Canada and the
United States. At Detroit, on Mch. 31, Congressman O. J. Larson
of Minnesota stated that the proposed waterway would add $300,-
000,000 a year to the value of farm products of the United States
while Canadian farm products would increase in value $44,000,000
a year. H. J. Hughes, personal representative of the Governor of
Minnesota, told the Commission that he also represented about
50,000 organized farmers of his State with business interests
in St. Paul, Minneapolis, and other cities, and voiced unqualified
approval of the project. At the same time a Convention of the
Great Lakes and Tidewater Association, representing 15 States,
met in Detroit and expressed renewed confidence in the undertaking.
158 THE CANADIAN ANNUAL REVIEW
On July 10, 100 men prominent in the political and business
life of the United States, visited Niagara Falls as guests of the
Province of Ontario and under the auspices of the Great Lakes and
St. Lawrence Tidewater Association of the United States. It was a
tour of the proposed route of the International Deep Waterway and
two days were given to an inspection of the Hydro-electric under-
takings centred upon Niagara Falls. At St. Catharines (July 11)
Sir Robert Borden welcomed the party which he afterwards de-
scribed as perhaps the most important American body which had
ever come to Canada ; the new Welland Canal was then visited and
the Delegation was in Toronto on the 12th and heard Sir Adam
Beck — after which they started down the Lake and River to Roches-
ter, Ogdensburg, Montreal and Quebec. The successful object of
the trip was to convince themselves that (1) the two nations could
actually combine to deepen the channels between tide- water and the
Great Lakes sufficiently to increase and cheapen water carriage
from the wheat countries to the sea, and that (2) there could be
a joint exploitation of the immense water-powers running to waste
in the St. Lawrence.
There was much favourable opinion expressed. A Chicago
journal, Power Plant Engineering, declared in August that the
project would save the United States 100,000,000 tons of coal a
year and $18,000,000 on the transportation of wheat alone; it
would be the remedy for American freight blockades and help to
check excessive railway rates. The Toronto Star and Toronto
interests favoured the plan for some at least of the reasons that
Montreal and New York opposed it. It would make the Ontario
City a sea-port and its harbour a hive of transportation develop-
ment and the journal in question estimated (Sept. 16) a saving on
freight rates, upon the Lakes alone, of $31,000,000; the scheme
should save from 8 to 10 cents per bushel on all the grain raised in
the districts tributary to the Great Lakes and this saving would
amount annually to about the cost of the improvements proposed.
The Ontario Hydro-Electric Commission reported in November
that the St. Lawrence would yield over 4,000,000 continuous horse-
power of which 1,600,000 was in the international portion of the
river with 800,000 h.p. belonging to Ontario. If this latter amount
were available to-day it could all be utilized within a relatively
brief period. On the assumption that power would be available
in 5 years the Commission estimated a demand for nearly 3,000,000
h.p. within the present decade and more than 6,000,000 before
1941 — in addition to the present demand. The Toronto Globe
stood vigorously for the project and on Nov. 21 stated that: "The
deepening of the St. Lawrence canals is inevitable. The weight of
public opinion behind the project is irresistible. New York and
Montreal have not power enough to prevent the 20,000,000 people
who have built their homes and carry on business on the border of
the Great Lakes from using to the full the great advantage of water
transportation."
INTERNATIONAL JOINT COMMISSION; THE ST. LAWRENCE PLAN 159
In the U.S. Congress on Dec. 5 there was a vigorous debate on
the project with A. P. Nelson, Wisconsin, and W. W. Chalmers of
Ohio, both Republicans, in favour and A. J. Griffin (Dem.) with
F. C. Hicks (Rep.), both of New York, against the plan. Mr.
Nelson stated that "on the grain produced within the territory
affected there would be a saving of $350,000,000 annually and it may
be conservatively estimated that the producers of the United States
will be benefitted to the extent of at least $5 00, 000, 000 in return for a
total expenditure of less than $150,000,000 which will be reimbursed
to the Government, in full, by the revenue derived from water-
power." Incidentally, Mr. Chalmers declared that the Power-
station would be within the territory of the United States, close to
the Canadian line and only 170 miles from Boston. At the close of
the year it was understood that the International Joint Commission
had decided to recommend to Parliament and Congress the scheme
of its joint engineers which would cost the two countries $252,000,-
000 to carry out.
Meanwhile the Canadian Deep Waterways Association had
met in Hamilton on Nov. 1st with President O. B. Fleming, K.C.,
of Windsor in the chair. Hugh Blain, Toronto, criticized the
attitude of Montreal and claimed that as the Federal Government
had expended upward of $57,000,000 on the harbour there and on
the St. Lawrence River below Montreal that City should not object
to the project even if it did specially benefit Toronto. He urged
the new policy as a means of developing Canadian resources and
re-adjusting freight rates; Mr. Fleming pointed out that the Tide-
water Association in the United States, a kindred organization, was
supported by financial grants from the Legislatures of 18 Middle-
West States and urged similar Ontario support. Mayor C. G.
Coppley of Hamilton stated that his city was behind the scheme ;
H. T. Harriman, President of the New England Power Co., Boston,
claimed that grain could be shipped by the improved waterway from
the head of the Lakes to Boston for six or seven cents per bushel
compared with the current cost of two cents from Fort William to
Buffalo and 12 cents from there to the Atlantic seaboard. At the
evening banquet Congressman A. W. Jeffries of Nebraska spoke as
well as Mr. Harriman. Mr. Fleming was re-elected President and
F. Maclure Sclanders, Windsor, Hon. Secretary-Treasurer; the
Vice-Presidents were E. L. Cousins, Toronto, George G. Guy,
Hamilton; Major A. C. Lewis, M.L.A., Toronto, was again appointed
Secretary-Treasurer.
Opposition to the Waterway Plans. There was much
opposition from the Province of Quebec and the State of New York.
There, also, was a tendency in Ottawa and Montreal to support the
old Georgian Bay, all-Canadian project, via the Cardinal- Ottawa
route and costing an estimated total of $80,000,000. The Ottawa
Journal took this view and strongly opposed the whole Deepening
project; its principle argument was the apparent fact that Canals
and Waterways did not pay, that shippers preferred the Railways,
that while Canal traffic was decreasing the other was increasing.
160 THE CANADIAN ANNUAL REVIEW
Another related to the action of the Chicago Drainage Canal in-
terests in affecting the whole St. Lawrence System by lowering the
depth of water. The Montreal Board of Trade in its 1921 Report
re-affirmed its views and support of the Shipping Federation of
Canada (also of Montreal) by an elaborate declaration that:
(1) Navigation interests on the St. Lawrence required all the avail-
able depth of water between Montreal and the sea and this might be
interfered with by the proposed dams and power plants; (2) that the
cost was greatly under-estimated and would total at least $200,000,-
000 for a 20-foot channel; (3) that for a 30-foot channel the cost
would be enormous with, probably, a dredged canal from Montreal
to Lake Ontario and one, also, up the Detroit and St. Clair rivers,
together with the rebuilding of the Welland and Sault Ste. Marie
canals to 30 feet; (4) that from an economical point of view it
was improbable that ocean-going vessels would ever make a practice
of trading to ports on the Great Lakes, no matter to what extent
the canal systems west of Montreal were enlarged and deepened —
as the cost of upkeep of ocean steamers, the delay in proceeding
through the canals, and danger of damage, would be too great to
make them a revenue-paying proposition; (5) that Canals should
not be built internationally and that those in Canada should be
built and owned by the Dominion Government; (6) that the
proposed power action would be of little benefit to Canada as
Ontario had immense water powers awaiting action of which
Canada would have the entire product; (7) that the proposed de-
velopment would vastly more benefit the United States than
Canada, and that it would be better for the Dominion Government
to adopt the Georgian Bay Canal scheme as cheaper, more beneficial
and all-Canadian; (8) that the finances of the Dominion made the
plan unwise and, especially so, in view of the fact that Canals along
the border were free of toll. Another point of view was expressed
by Rev. Canon F. G. Scott, D.S.O., of Quebec who, in an interview
on July 18, said:
The scheme though expensive, is feasible, and at first sight seems attractive;
but Canadians must wake up to the fact that the inter-nationalizing of our great
waterway is fraught with the most momentous consequences to our national life.
. . . What would the inter-nationalizing of our great and distinctive Canadian
river mean to Canada? The St. Lawrence, with the exception of something less
than 100 miles, lies wholly in Canada. It is a gigantic asset for this country.
What part it will have to play in the development of Canada in the future, no
one can say. It is not merely a Canadian asset, it is an Imperial one, and must
be wholly under control. At some future time, the Empire might be at war with
a foreign power with which the United States was at peace and it might be neces-
sary for us to close the river by mines or in other ways. It is Ihe very spinal
marrow of Canada and on its shores and the shores of its tributaries lie the cities
or villages of a large part of Quebec and Ontario.
The inter-nationalizing of the St. Lawrence would cut us off both really and
sentimentally from the lower Provinces. The thing is unthinkable. Would the
Amej icans consent to the inter-nationalizing of the Panama Cannl or Mississippi?
Our great river must be ours and ours alone. Canadians must face the fact that
the joint stock management of the St. Lawrence would be the first step to Annex-
ation.
In New York, Governor Nathan L. Miller vigorously opposed
the project. He feared inter-national complications and delay in
INTERNATIONAL JOINT COMMISSION; THE ST. LAWRENCE PLAN 161
current developments at Niagara and in the St. Lawrence itself;
he preferred private rather than public effort in such a connection
and urged State development of its own resources as the first con-
sideration. State transportation interests urged attention to their
own facilities and especially the New York Barge Canal which, it
was claimed, now gave established rates, through bills of lading,
insurance on cargoes, free store door deliveries at Buffalo, and
transfer allowances in the Port of New York, and had working
agreements with both lake and ocean transportation lines. It was
claimed, as in Montreal, that it was not economical to send large
ocean-going steamers the long trip up river, canal and lake to
Lake ports.
E. H. Outerbridge, Chairman of the Port of New York Author-
ity, in a letter published during September, claimed (1) that the
final costs would run up to 1,000 millions; (2) that navigation of the
St. Lawrence River was open only 7 months of the year; (3) that
the Canal would be absolutely useless unless Lake ports and chan-
nels were deepened to 30 feet at an enormous cost; (4) that insur-
ance rates on the St. Lawrence River were higher than for Atlantic
ports and especially so in the fall and spring; (5) that the operating
cost of ocean-steamers through such a Canal under the most favour-
able circumstances would be far greater than the cost of transporting
grain through elevators to ocean ships at a real ocean port; (6) that
as a Power proposition, even if justified on economic grounds, it was
not one to which the U.S. Government should pledge its credit or
spend the money of the people; (7) that since private capital had not
displayed any willingness to furnish capital for the Canal it was
apparent that faith in it was lacking; (8) that it had none of the
justifications of the Panama Canal, in cutting off enormous dis-
tances between the various States with its possession a matter of
Naval and military protection of the country's coasts. On Sept.
8 a Deputation from New York interests opposed to the policy
visited Montreal and conferred with the local Shipping Federation,
the Harbour Board and the Board of Trade. The Boston Chamber
of Commerce in March issued a statement through W. H. Chandler
that the project was not practicable from an engineering point of
view or necessary as an economic consideration; he claimed, as
did New York opponents of the plan, that Massachusetts, Pennsyl-
vania and New York would bear the bulk of the taxation involved.
British Con-
ditions in
1921 Touching
Canada and
the Empire.
CANADA
AND ITS
RELATIONS WITH THE EMPIRE
Under ordinary conditions Canada was not
much affected by the Party politics of the Mother-
Country; in a broad sense and, apart from the
single issue of Protection vs. Free Trade, Canadian
sympathies were, probably, with British Liberalism.
There was little division of thought however, as to
the Lloyd George Government and Coalition during the War, nor
afterwards and through 1921, except perhaps for inevitable differ-
ences on the Irish question. The burdens borne by the United
Kingdom at this time were enormous — at the heart of the Empire
and all over the world. The Army estimates for 1921-22 were
£106,315,000 and those for the Navy £82,479,000; large as the
figures were they involved a decrease of £16,000,000 in the year.
British trade had decreased — as a result of worldwide depres-
sion, of Labour conditions in general, and of wages maintained above
the level at which the public could absorb the product — from
£1,932,648,881 of Imports in 1920 to £1,086,687,213 in 1921 and
from £1,557,222,600 of Exports to £810,248,354. The wealth of
the country was enormously taxed with £721,000,000 raised in 1920
as against £93,000,000 in 1913. For the fiscal year 1920-21 the
Revenue was £1,425,985,000 and the Expenditures £1,195,428,000
with the surplus applied to Debt reduction; in this general connection
the costs of the fighting services had also been reduced £400,000,000
in two years. British reconstruction meant much to Canada; it
would probably involve a new stream of wealth to the outer Do-
minions and, already, in 1920 £25,000,000 had gone into the secur-
ities of other British countries as against £12,000,000 in Foreign
securities.
Despite the enormous War Debt of £7,500,000,000, the in-
evitable unemployment of war's aftermath and the obligations of
world-relief which Britain assumed, up to a total of £48,338,000
granted various countries by October 1920, there was steady im-
provement in 1921. Bank dividends were maintained at the 1920
level and Bank liquidation of "frozen" loans was said by the London
Times to have been healthy and satisfactory; the leadership of the
world in ship-building was re-captured with 1,538,052 tons of con-
struction compared with 1,006,413 tons in the United States; the
balance of trade against the United Kingdom was reduced by
£200,000,000 or one-half; the greatest display of British manu-
factures ever brought together was shown in three miles of stalls
at the British Industries Fair in London, Birmingham and Glasgow;
in the two fiscal years of 1920 and 1921 the Debt had been reduced
by £203,000,000 — including payments of £20,000,000 to Canada
and £75,000,000 to the United States.
[1621
BRITISH CONDITIONS AFFECTING CANADA IN 1921 163
At one day's Session of Parliament during July, 1921, Britain,
as the guardian of the Empire, voted millions for duly explained
expenditures in Tanganyika, in East Africa, Ceylon, Mauritius,
Trinidad, West Africa, West Indies, Malta, Rhodesia and the
Kenya Colony. During the year, in a trade connection, it was
announced that the British Government was prepared, under cer-
tain conditions, to guarantee drafts drawn against shipments of
goods to the following countries: Finland, Latvia, Esthonia, Lithu-
ania, Poland, Czecho-Slovakia, the Serb-Croat-Slovene State,
Roumania, Georgia, Armenia, Bulgaria, Austria and Hungary;
these guarantees would only be granted in respect of goods wholly
or partly produced in the United Kingdom.
The King and the Royal Family. The position of H.M.
the King was at this time not only important constitutionally, but
it was of great interest in current discussions of Canada's national
place in the Empire. There was no serious question raised in
Canada as to the necessity and desirability of the King remaining
as the head and symbol of the Empire, nor was there any issue as
to the personal allegiance of Canadians to him as their Sovereign.
His personal popularity was a quiet but effective factor in condi-
tions at home; it was a very real thing in Canada and the other
Dominions ; it was a potent force in the influence of Britain abroad
during this period of restless change. The controversy between
Lord Northcliffe and the Lloyd George Government over the
former's alleged use of the King's name during an expression of
opinion upon the Irish question in a New York paper on July 23
illustrated these facts. It afterwards appeared that the interview
was with Wickham Steed, Managing Editor of the Times, and he
claimed to have been grossly mis-quoted. The incident evoked a
direct and unusual denial from the King, which the Premier read in
the Commons on July 29 with a number of tributes to His Majesty
in press and speech — perhaps the most notable being that of Rt.
Hon. J. H. Thomas, Labour leader in the House.
During this year the King and the Royal family practised
many economies and permitted nothing of extravagance in any of
their establishments; the income of King George was £470,000 or
the same as that voted to King Edward in 1901 — with £43,000
from the Duchy of Lancaster — and out of this total large annuities
were paid to Queen Alexandra and others, with salaries to officials of
£125,000, expenses of Household £193,000, etc. Though the
recognized head of the Empire and of its various nations, the
375,000,000 of British subjects abroad contributed nothing to the
King's maintenance. During the War His Majesty had been able
to keep his Household within his income and, in 1916, to contribute
£100,000 to the War Treasury. In 1921, however, in order to meet
increasing costs of living, the King found it necessary to realize
£100,000 from his private property— the Duchy of Lancaster —
and this reduced his income by £5,000. Toward the close of the
year it was announced that Queen Mary had presented to the
people of Canada the dress worn by Her Majesty during the Corona-
164 THE CANADIAN ANNUAL REVIEW
tion and also that worn by the Queen for Their Majesties' drive
through London on the day after their Coronation and, subsequent-
ly, for* the State entry into Delhi. The two dresses were deposited
in the Royal Ontario Museum at Toronto.
The Royal family shared, as usual, in the public work of the
Empire. The Prince of Wales, at home and in India did much to
develop popular loyalty and unity and good-feeling — as he had in
Australia and New Zealand in 1920 and Canada during 1919.
The Duke of Connaught visited India and opened the new National
Parliament at Delhi; Prince Arthur of Connaught proved a great
success as Governor-General of South Africa and won extraordinary
popularity, visited the people in their homes and over coffee and
Boer tobacco — as one writer put it — captivated men and women
alike; Prince Albert, who was created by the King Duke of York,
Earl of Inverness and Baron Killarney, took his initial part in
public life and functions during the year. In Canada, as elsewhere
in the Empire, the engagement of Princess Mary, the King's only
daughter, which was announced on Nov. 22 to Lieut-. Col. the
Viscount Lascelles, D.S.O. and bar, son and heir of the Earl of Hare-
wood, and 39 years of age, aroused much interest. Lord Lascelles
had in 1907-11, been A.D.C. to Earl Grey when Governor-General
of Canada; in 1916 he had inherited a fortune of $12,000,000 or so,
from the Earl of Clanricarde. The Princess was popular to a degree
in England; her proposed marriage to a commoner with only a
courtesy title was everywhere regarded with favour. H. E. Lord
Byng of Vimy, on behalf of the Canadian Government, cabled
congratulations to the King and received cordial acknowledgment.
The Crown Princess of Sweden who had been Princess Margaret
of Connaught, died on May 1st at Stockholm; at Ottawa on Dec. 9
it was announced that the King had appointed Lieut. -Col. H. M.
Urquhart, D.S.O., M.C., of Victoria, as his Aide-de-Camp for Canada.
The Prince of Wales in England and India. During
1921 the Prince touched Empire interests at many points. Just
before the beginning of the year Rear-Adm. Sir Lionel Halsey was
appointed Comptroller of his Household and, in far-away Calgary,
Alberta, His Royal Highness divided honours about equally with
the Hon. Duncan Marshall, Minister of Agriculture, in sheep awards
at the local Winter Fair. The Royal ranch in the foothills of the
Rockies was at this time devoted to the raising of Shorthorn cattle,
Shropshire sheep, Dartmoor ponies and thoroughbred horses; an
exhibit of sheep from the "E. P. Ranch" was shown at the Van-
couver Exhibition later on. W. L. Carlyle, B. sc., Toronto, was
Manager and it was understood that the Ranch consisted of 1,400
acres of deeded land, and 2,600 acres of leased land. Most of it
was used for grazing and in meadows. In stocking the farm, the
Prince had sent most of the pure-bred stock from his own farms in
England.
The Prince's first public effort in 1921 was an appeal on behalf
of the Boy Scouts of whom he had seen so much in the external
BRITISH CONDITIONS AFFECTING CANADA IN 1921 165
Empire ; on Mch. 4th he upheld his reputation as the nation's repre-
sentative sportsman by riding through and winning the Grenadier
Guards' steeplechase at Danbury after a hard fall at the second
fence; a little later the Prince became the proprietor, by purchase,
of the Scilly Islands which have been described as "the flower-
garden of the Empire." It would be impossible and out of place
here to even indicate the myriad functions, addresses and incidents
of the year associating the Prince with the public life and people of
Britain. By the Autumn all arrangements were made for the
Royal tour of India and, on Sept. 1st, the Prince's Staff was an-
nounced to include the Earl of Cromer as Chief, Admiral Halsey as
Comptroller, with G. F. de Montmorency, Colonel R. B. Morgan
and Sir Godfrey Thomas, Captains Piers Legh and Dudley North,
who had been in the 1920 tour, and many others.
H.M.S. Renown was again placed at the Prince's disposal; the
Royal party left Portsmouth on Oct. 26, arrived at Gibraltar on
Oct. 29 and at Malta., on Nov. 3rd where the Prince opened the
first Maltese Parliament, visited Suez and Aden and reached Bom-
bay on the 17th. Here his first action was to deliver to the people
of India a Message — from a pavilion, brilliant with flowers and
pennons, where, on a cloth of gold, stood three golden Chairs of
State, of which the middle one was occupied by the Viceroy, that
on the right by the Prince and that on the left by the Governor,
Sir Francis Lloyd. The Message was from the King- Emperor
and in it, after reference to previous visits by Edward VII when
Prince of Wales and by himself, His Majesty said: "With this same
hope and in this same spirit my Son is with you to-day. The
thought of his arrival brings with a welcome vividness to my mind
the happy memories I have stored of what I myself have learned in
India; its charm and beauty, its immemorial history, its noble
monuments, and, above all, the devotion of India's faithful people
since proved, as if by fire, in their response to the Empire's call in
the hour of its greatest need. Throughout the civilized world the
foundations of social order have been tested by war and change.
Wherever citizenship exists it has had to meet the test, and India,
like other countries, has been called to face new and special problems
of her own. For this task her armoury is in the new powers and the
the responsibilities with which she has been equipped."
The splendid scenes at Bombay were duplicated elsewhere and
often, in brilliance and colour effects, in massed crowds, in sombre
Oriental shades, in a splendour and state such as Western eyes have
never seen and Western minds can hardly conceive. There was the
glitter of sunshine, the thunder of guns, the fluttering of flags,
and the masses of people ablaze with colour, rising tier above tier
from the street to the roof tops; there was all the gorgeousness of
trappings and vivid effects of the East, the background of a million
dusky natives, of myriad eyes and tongues of speech, the inscrutable
silent ga?e which no white man has ever fully understood ; there was
the clatter of cavalry and mounted troops in picturesque uniforms
and, for five miles through this human mass, there passed a single
166 THE CANADIAN ANNUAL REVIEW
slender figure clad in white, slashed across with the pale blue ribbon
of the Star of India. Following this first visit of the Tour, the
Prince, during the balance of 1921, was welcomed at the historic
centres mentioned below:
November 23-24 Baroda December 7-8 Bharatpur
" 25-27 Udaipur 1-12 Lucknow ; Allahabad
28 Adenere 13 Benares
29-30 14-21 Bairagnia
1 Jodhpur 22-23 Patna
December 2-6 Bikanir 24-30 Calcutta
This covered only a portion of the Tour but it was replete with
picturesque, vivid, intensely interesting incidents; sights at once
bright and brilliant, sad and sombre; influences and spectacles
which were at the same time infintely attractive and fiercely repel-
lant. The Imperial Service contingents and the representatives of a
million men who served in the War, the gorgeous rulers of tributary
states and the squalid masses who were ruled, the Princes, and
Statesmen, the wild warriors of wilder clans and tribes, the students
and the agitators, the office-seekers and office holders — all were
met and, no doubt, studied in a fleeting way. So with the intense
ignorance of the masses and the fanaticism of the tiny educated
class, the martial ardour of the Mohammedan and the peace-loving
yet life-callous temperament of the Hindu, the myriad races and
classes and castes, the bitter hatreds and remorseless feuds, the
endless contradictions of life amidst 320,000,000 of the most diversi-
fied people in the world — all were seen in a kaleidoscopic procession
of vivid pictures. Of his first week the Times correspondent wrote
(Nov. 29) :
The whole week has been one grand pageant of colour, movement, light, and
music; of flags, decorated streets, palaces, and temples; of swarming populations,
marchings, and processions ; of princely jewels and sumptuous cloths and tissues ;
of troops in brilliant uniforms, from the half wild horsemen and armour-clad
warriors from the Middle Ages to the superbly trained and magnificently equipped
regiments of to-day; of elephants, camels, oxen, and horses, all in gorgeous trap-
pings ; of crocodiles in tanks and motor-cars ; of British Army bands and the weird
throbbings of native drums and the clanging temple bells ; of hot sun by day on
yellow land, dark foliage, and white houses, with kites wheeling overhead, and
clear crystal nights, with jackals howling in the starlight.
During this eventful, crowded, changing month, in what has so
often been called the changeless East, the Prince did polo and pig-
sticking with the veteran Sir Prata Singh at Jodhpur and reviewed
the Indian Lancers of Palestine fame; saw something of Indian
education at Mayo College, Ajmere, and of duck-shooting at
Bharatpur; witnessed a f£te at Lucknow which recalled the glories
of the ancient Nawabs and Kings of Oudh; shot tigers and other big
game with Sir Shamsher Jung in the Nepaul Terai; spent some days
as the first Royal guest of the first Native Governor of a British
Province— Lord Sinha of Raipur, Governor of.Behar and Orissa;
held a magnificent Royal Durbar at Patna, and travelled in a train
of ten coaches, painted in cream colour and royal blue, with plate
glass windows and every conceivable comfort.
BRITISH CONDITIONS AFFECTING CANADA IN 1921 167
At the Poona races (Nov. 20) the Prince put aside the official
plans, and, amidst a scene of extraordinary enthusiasm he strode
well ahead of the Governor and his Staff, who were accompanying
him, and passed down the whole half-mile, brushing close to the
rails, laughing, acknowledging cheers, exchanging greetings, and
touching the hands reached out to him. At Baroda a Durbar was
held on floors of carpeted gold with walls of marble and teak, after
leading a procession which included batteries of gold and silver guns,
colossal elephants bearing silver and golden thrones — the Prince
himself in a barouche scintilating gold and jewels; at Calcutta a
Pageant in the Maidan showed the Orient at its best with slow
processions of gorgeously equipped men and elephants and other
beasts in an unparalleled colour effect — black, orange, golden,
white, yellow, purple and green, the seven notes of the Indian scale,
succeeding each other, each with its appropriate instrument and
symbol, each with its attendants and musicians, each with its deity
in its car.
There were devil dances by Thibetan monks wearing the
grotesque masks of symbolic Buddhism; there were graceful dances
by women of Manipur ; there was the New Year parade of the Mos-
lems with horses and elephants bearing emblems of sovereignty —
each of the latter being made to salaam before the Prince; and
continued with an enormous succession of brilliantly clad soldiers,
officials and marshals, bullock cars, palanquins and musicians.
It ended, as it had begun, with a long sequence of elephants, each
duly representative of some aspect of Moslem religious life. At
Christmas time the Prince rested, with the first part of his Tour
an unquestioned success — due, in part, to his own personality, in
part to the Indian love of splendour and spectacles. He had over-
come a strained situation of distrust and agitation and the secret
machinations of disloyal treachery ; he had conquered the Hartal or
boycott in the form of a day of mourning and retreat, proclaimed by
the National Congress and the Moslem League, for the places he was
to visit; he had faced real personal danger from fanatics who
might think nothing of his life or their own ; he had once more proved
that the Pax Britannica was a real thing amongst the stormy or
sullen, silent and secretive, masses of this Oriental Empire.
Progress of Protection in Britain. This issue and
the fiscal legislation of 1920-21 were of much interest to Canadians;
the situation had already aroused the keen suspicion of British
Liberals and the opposition of Mr. Asquith as their Leader.
Amongst the Resolutions passed by the Conference of the National
Liberal Federation at Nottingham on Feb. 23-24, 1921, was one
approving establishment of a National Industrial Council to deal
with Labour problems, strikes, unemployment, production and
capital conditions; another declaring against recent "protective
fiscal measures" and demanding that "the well-tried Free-Trade
policy of this country shall be re-established." Following the
War, the Lloyd George Government had formulated a policy safe-
guarding what were termed "key industries" — those which had
168 THE CANADIAN ANNUAL REVIEW
been established during the War for purposes of National safety
and which now required fiscal support for their maintenance.
Legislation, in 1921, was carried giving a protective duty of 33 /^
per cent, on the value of specific articles for a 5 -year period. They
included :
1. Optical glass and optical elements.
2. Microscopes, field and opera glasses and optical instruments.
3. Flasks, beakers, measuring cylinders, thermometers and scientific glass-
ware.
4. Evaporating dishes, crucibles and other laboratory porcelain.
5. Galvanometers, barometers and various scientific instruments; gauges and
measuring instruments.
6. Wireless valves and vacuum tubes; ignition and permanent magnetos.
7. Arc-lamp cartons and Hosiery latch needles.
8. Metallic and ferro-tungsten and manufactured products; compounds of
thorium, cerium and other rare earth metals.
9. All synthetic organic chemicals — other than dye-stuffs, colours, etc.
There also was an anti-dumping section under which a Cus-
toms duty of 33 y$ per cent, of the value on articles imported into
Great Britain, of any class or description in respect to which an
Order of the Board of Trade had been issued as to specific countries
and as being offered for sale in Great Britain (1) at prices below the
cost of production or (2) at prices which by reason of depreciated
currency were below the prices at which similar goods could be
profitably manufactured in Great Britain. This was aimed at
Germany chiefly, but Liberals claimed that the wide latitude of
these clauses made the measure one of serious Protection. Sir
John Simon in London on June 3rd declared that: "This Bill puts a
premium on dearness. It taxes articles because they are being sold
too cheap, and this at a time when the one outstanding desire of
every consumer is to see prices fall, and when the one outstanding
necessity of British commerce is to encourage trading with every-
body." Manifestos in opposition were issued by a number of
Cotton manufacturers, and by a Committee of Bankers, as smash-
ing into the Free-trade citadel. The measure passed in due course
as did a later one presented by Sir Robert Home, Chancellor of the
Exchequer, and entitled the Trade Facilities Bill. It provided for
an Export Credit scheme and for guaranteeing loans up to a limit
of £25,000,000. "It is our duty as well as our interest," said Sir
Robert on Oct. 25, "to develop the great estate we own throughout
the world. These possessions are our best customers, and have
proved in times of difficulty our most loyal and attached friends."
British Incidents of Imperial Importance.
Jan. 7. Viscount Milner, K.G., G.C.B., G.C.M.G., retired from the post of
Secretary for the Colonies and was succeeded by Rt. Hon. Winston Spencer
Churchill, M.P.
Jan. 19. The marriage of Lieut, the 5th Earl of Minto to Miss Marion
Cook, daughter of Mr. and Mrs. G. W. Cook, of Montreal, was an event of interest
to Canadians and was attended by the Governor- General and Duchess of Devon-
shire.
18. Lord Lee of Fareham, Minister of Agriculture, was appointed
1st Lord of the Admiraltv.
NATIONALISM IN THE EMPIRE; ITS 1921 DEVELOPMENTS 169
Mch. 17. The Rt. Hon. A. Bonar Law, P.C., LL.D., M.P., Lord Privy Seal
and Government Leader in the Commons, resigned from the Cabinet and the
leadership. He was a Canadian by birth. On Mch. 1st the Rt. Hon. Austen
Chamberlain was elected Leader of the Unionist Party in the House.
Apr. 8. Lord Edmund Talbot, only brother of the late Duke of Norfolk,
was appointed Viceroy of Ireland under the new Act and in succession to F. M.
Lord French — with the tital of Viscount FitzAlan of Derwent.
Sept. 16. It was announced that the Colonial Office under Mr. Winston
Churchill was engaged on an important scheme for the re-organization of the
administration of the Crown Colonies and Protectorates, designed to extend
among other things, a greater amount of autonomy. The main proposals were
the grouping of the various Crown Colonies according to their geographical posi-
tion under High Commissioners, to whose shoulders would be transferred some of
the duties and responsibilities — especially in the way of public appointments and
concerning financial problems — which now devolved on the Secretary of State.
Oct. 1. Lieut. -General the Earl of Cavan, K.P., G.C.M.G., K.C.B., M.V.O.,
was appointed Commander-in-Chief at Aldershot.
Dec. 22. The successful closing of an Indian Loan in London for £10,000,-
000 prompted the Times to point out that since Sept. 28 no less than £48, 155,000
had been advanced in London for the Dominions and Colonies — including South
Africa, Australia, Nigeria and India.
The issues involved in these simple words of
Nationalism Nationalism and Self-government were so varied,
s" ecfafmpire: so numerous> so vital to the future of Great Britain
Developments an(* its Commonwealth of Nations, that many
of 1921. books could be written about them and then only
skirt the fringes of possibility in a world-empire.
It is thought that a brief presentation of the extreme and anti-
British type of Nationalism which showed itself throughout the
Empire at this time would be of value. Canada's particular phase
of evolution and that of Ireland are considered separately*. There
were two forms of Nationalism developing side by side during 1921
— sometimes antagonistic, sometimes merging in one another,
always opposed to what was termed Imperialism. There was the
Nationalism represented by Sir Robert Borden and Mr. Meighen
and their Unionist followers, by General Smuts in South Africa,
and by the Liberal party in Canada — a form of constitutional
national evolution, within the Empire, but opposed to any central-
ization of the Empire's government in London ; there was, also, the
Nationalism represented by Henri Bourassa and John S. Ewart,
K.C., which involved the creation of a nation or republic without the
Empire — separation to take place whenever convenient to Canadians
themselves.
Nationalism and the Independence of Canada. The
very limited discussion of this latter question in Canada received
a fillip in 1921 from the International discussions of the year. It
was argued by the small group of men interested, that Interna-
tionalism was the antithesis of Empire and Imperialism; that
representation in Conferences at Versailles, or Geneva, or Genoa,
or Washington, was an evidence of Canada's growing independence
of Imperial considerations or interests, and would soon lead to
*NOTE. — See International Relations in this volume; a special Section is given to Ireland.
170 THE CANADIAN ANNUAL REVIEW
friction with British representatives; that the more this policy was
cultivated the more rapidly the country would come to Indepen-
dence and separation; that allignment with the United States
against Great Britain, as in the Japanese treaty, was inevitable and
should be encouraged ; that the appointment of Dominion Ambassa-
dors or Ministers would be a distinct step along this path. It was
believed by prophets of this school that the logical outcome of
autonomy was Independence, that the power to amend the con-
stitution, the proposed abolition of Privy Council appeals, the
dependence on a League of Nations and the United States rather
than on the British Empire, the choice of a Canadian flag instead
of the Union Jack, the replacing of "God Save the King" by
"O Canada" as a National anthem, the elimination of all respon-
sibility for Empire interests and policy, would work, and were work-
ing, toward the end in view.
Mr. Ewart's one-time idea of a series of independent nations
under one King had been abandoned by him for a purely Canadian
republic and on Feb. 26 he asked this question : "If we are a free and
independent nation, why should we hesitate to proclaim the fact and
order our national life in accordance therewith?" Lindsay Craw-
ford, his Irish colleague along these lines, had a point of view illus-
strated in his speech at New York on May 6: "We are protesting
against an England that is already on its death-bed, and should
have gone down to perdition with Germany itself." Equally in-
teresting was the attitude of Prof. O. D. Skelton of Queen's Uni-
versity, who wrote on Feb. 25 ^^m^roweT? Guide] : )"Why not
push to its logical conclusion the policy of Imperial alliance, the
re-shaping of the Empire, so far at least as the lands of white men
go, into a league of nations equal and independent, linked by a
common King?"
The Statesman, a weekly journal edited by Lindsay Crawford,
continued to write unceasingly along separatist lines. In its pages
on Feb. 7, 1920, Mr. Ewart had said: "I now ask whether indepen-
dence as a republic with a Canadian President would not be better
for Canada than independence as a monarchy under a bifurcated
king." The Canadian Independence Papers were issued by J. S.
Ewart who, also, regularly wrote for the above journal ; the Daughters
of Canada, a new Toronto organization, heard all the speakers along
this line whom it could obtain. They were addressed by Mr. Ewart
on Apr. 16, 1921 who gave a personal version of Empire as it is, or
was, and added:" As Canada is not a dominant part and not a sub-
ordinate part, she can't be part of an Empire at all, except in form,
and the form has outlasted its reality, as most forms do."He urged
abolition of appeals to the Privy Council; he also claimed that
Canada's interests were distinctly divergent from those of the
United Kingdom.
Another advocate of separation was the Rev. Dr. George
Workman who told the Daughters of Canada, Toronto, on Feb. 1st
that : "For nearly 50 years I have been an advocate of Independence,
believing that to be our inevitable destiny, x x x We should gain
NATIONALISM IN THE EMPIRE; ITS 1921 DEVELOPMENTS 171
our independence in a quiet way and by constitutional means, of
course." Armand Lavergne, the chief disciple of Mr. Bourassa
in Quebec, stated at Kingston on Feb. 5 that: "So long as we are a
colony, until the glorious day when we fulfil the promise made in
1867 of making this a sovereign and independent country, we must
not forget that 'eternal vigilance is the price of liberty'." Others
whose speeches indicated support of this view were C. J. Foy, K.C.,
the Abb£ Groulx of Montreal, Ame*dee Monet, M.L.A., Montreal.
At Quebec on Dec. 22, in speaking at a dinner tendered to Mr.
Lavergne, Henri Bourassa expressed himself rather differently*.
In reviewing the problems which Nationalism was facing to-day, he
said : "Confederation has lived. I do not know how long it will con-
tinue— perhaps 20, perhaps 30 years, perhaps longer — but it is
fatally wounded." The fight should be, not against England, but
against Anglo-Saxonism, whether it was British or North American.
Such, in 1921, were the expressed elements of separatist Nationalism
as distinct from evolutionary and natural developments within the
Empire. They were not conspicuous though they had elements of
strength; they had not aroused opposition to any serious extent or
awakened British sentiment. On the other hand there was very
little active propaganda or public expression along what might be
termed Imperialist lines.
Nationalism in Australasia during 1921. In Australia
there was at this time a measure of incipient republicanism, largely
composed of Labour extremists and of Irish citizens to whom the
Settlement of 1921 had not yet appealed; this element had been
strong enough during the War to defeat Conscription but not
strong enough then, or in later years, to defeat W. M. Hughes.
Like the Prime Minister, the majority of Australians stood strongly
for union with the Empire; a very considerable proportion would
have supported reasonable forms of closer relationship; the Na-
tionalism of Mr. Hughes at Versailles and in London was not aggres-
sive ; at times he was in opposition to General Smuts, Sir R. Borden
or Mr. Meighen. New Zealand had, practically, no Nationalism of
either type; it was thoroughly British — with the exception of a few
Socialist extremists — and ready for the closest relations with the
United Kingdom and the Empire.
Like Mr. Hughes, its Prime Minister was in favour of an Im-
perial Council; their ideal for the Dominions seemed to be a circle
of nations in carefully regulated partnership with Great Britain.
At Victoria, B.C., on May 6 Mr. Massey expressed his views to
the Colonist as follows : "There must eventually be a re-organization
in Imperial affairs and an Imperial Executive named to. deal with
Empire policies. The members of this body should be the Premiers
of Britain, and the Dominions, and representatives of India.
The Executive would meet at least every two years." He main-
tained that no Dominion was entitled to interfere with another
Dominion's affairs, nor the Dominions with the senior partner's
*NOTE. — Toronto Globe despatch Dec. 24, 1921.
172 THE CANADIAN ANNUAL REVIEW
affairs. He would have the Imperial Executive members directly
responsible to the respective Parliaments. He stated that the
Dominions should be prepared to make much larger contributions to
the Empire Naval fund, but declined to discuss details.
The Labour party in New Zealand was not politically powerful ;
in Australia it was a very considerable factor and an extreme section
of it was essentially anti-Empire in policy. Queensland and New
South Wales at the close of 1921 were under Labour rule; the State
Labour parties were opposed to immigration and to any arrange-
ment between Britain and the Commonwealth for its promotion;
they favoured high wages and shorter hours of labour; they sup-
ported abolition of State Governorships and the Legislature in
Victoria rejected such a proposal while that of Tasmania approved.
At the Victorian Labour Conference on Mch 27. an attempt was
made to incorporate a Republican plank in the Labour platform and
give it priority over all others ; after a stormy discussion the motion
was defeated. On May 6 a great Loyal demonstration was held
in Sydney to protest against local utterances of a disloyal character
• — chiefly by Socialists and extremists of various kinds.
An ensuing Labour Manifesto denounced Imperialists and
capitalists and stood for "complete Australian self-government as a
British community/' On June 26 at Melbourne the All- Australian
Labour Congress appointed a Council of Action of 13 to take su-
preme control and management. The programme of policy in-
cluded a Resolution, almost unanimously approved, in favour of
making the Socialization of industry, production, distribution and
exchange the objective of the Labour Party. The ensuing Inter-
State Labour Congress at Melbourne on Oct. 16 approved Resolu-
tions in favour of making the Commonwealth the supreme governing
authority of Australia with unlimited powers, of refusal to partici-
pate in any wars outside the Commonwealth, of opposition to all
forms of assisted immigration, of the vesting of final jurisdiction in
all legal cases in the High Court, of the prohibition of Imperial
honours to any Australian citizen.
Nationalism in South Africa— The Policy of Hertzog.
The agitation led by General Hertzog in the Union of South Africa
was distinctly a republican one. The Hon. N. W. Rowell, speaking
in Toronto on Jan. 11, after his return from that country, described
the situation with accuracy: "The South African and Unionist
parties united under General Smuts on the basic ground of co-opera-
tion between European races to build up the country within the
British Empire. Next month the people of South Africa must
decide between the parties of Smuts and Hertzog, of independence
of the British Empire and of being part of the Empire. The
Nationalists have gained strength since the adoption of the policy
to break away from the Empire, as it is an appeal to the animosities
of old-time Boers." During this vital Election contest the first
Manifesto of the Nationalist leaders tried indirectly to withdraw the
Secession issue as a result of the powerful opposition which develop-
ed but without any real success in the constituencies — where Nation-
NATIONALISM IN THE EMPIRE; ITS 1921 DEVELOPMENTS 173
alist supporters insisted upon distinct declarations. General Hertzog
led the Nationalists, Teilman Roos was their leader in the Transvaal,
De Berger of Cape Town was one of their chief organs.
The Labour party was split by the question and the great
majority supported the Government. The latter faced the contest
on General Smuts' declaration of Dec. 3rd, 1920, at Pretoria: "When
the Nationalists speak of Independence, and of seccession from the
Empire as necessary to secure that independence, they are dominated
by pre-war conceptions. If by independence they mean an indepen-
ence in friendly association with the British Empire, then I say that
such an independence w^e can have in fullest measure without seces-
sion from the Empire. That is the great change in the status of the
Dominions to which I have often referred in my speeches." Hence
his claim that the pre-war Empire had "ceased to exist as a result of
the War". This was followed by a second Nationalist Manifesto
which, in many distinct clauses, defined the Party's position and the
Hertzog policy. The important sections were as follows:
1. Every nation has, through providence of the Almighty, an inborn and in-
alienable right to develop itself and, through the necessary measures of civiliza-
tion obtain its sovereign independence, and thus become of age.
2. The only and the highest freedom for a nation which is of age is its own
freedom — that is to say, the right to fix its own form of government and, if need
be, to modify or alter it.
3. A nation therefore does not really become of age unless it enjoys sovereign
independence separated from any other nation.
4. The will and desire of the Dominion of South Africa must be expressed
freely and without hindrance in a recognized constitutional political manner —
i.e., by the enfranchised citizens of the Union. Common sense and statesmanship
indicate that the question of separation (secession) must not be hurried or forced,
but that, when the proper time arrives, this question shall be specially referred to
the people.
5. Therefore, as we are on equal footing with the United Kingdom, it follows
that we are fit to obtain and enjoy sovereign independence. It is absurd to state
in one and the same breath that we enjoy equality with England, but that we are
unfit and unqualified for sovereign independence.
'6. Pending the realization of our national ideal — namely, sovereign indepen-
dence for South Africa, separated from the United Kingdom and the British
Empire — we must take steps to gain equality with England in every practical
manner and in reality.
7. Therefore we must be careful not to do anything by means of negotiations
with England, or in connection with Imperial or any other Conferences, or in what-
ever other manner, which in any way will bind or retard our free sovereign national
desire.
The result of the elections showed the South African party and
Unionists to have advanced their holdings from 65 to 78 seats, the
Nationalists to have lost one seat — 45 to 44, Labour to have de-
creased from 21 to 9; there was one Independent as against 3 in
the preceding House and two seats were tied; the Government and
its policy of local liberty and Empire unity had a clear majority
of 22 seats over all parties. One result of the contest on Feb. 8 was
to make the Nationalists a purely racial party with the slogan of
"South Africa for the Dutch". In the Senate the results, apart
from the 8 nominative members, were as follows: South African
Party (Government) 17, Nationalists 13, Labour 2.
174 THE CANADIAN ANNUAL REVIEW
General Smuts was thus able to go to the Imperial Conference
and his policy there was, in the main, that of Mr. Meighen represent-
ing Canada; he was an enthusiastic supporter, as he had been one of
the originators, of the League of Nations. During the year the
Labour party won two bye-elections and, in the autumn Mr. Boydell,
its leader, and General Hertzog, appeared on the same platform.
The official Labour tendencies at this time were along lines of vio-
lent radicalism with Russian Jews said to be conspicuous and
Bolshevist and I.W.W. adherents numerous. The personal suc-
cess of Prince Arthur of Connaught as Governor- General and the
popularity of F. M. Lord Haig in his visit to the Imperial Veterans
Congress, were local incidents of Empire import during the year.
Nationalism in India — The Policy of Gandhi. Through
the visit of H.R.H. the Duke of Connaught to India early in 1921
Canada came into indirect touch with the two forms of Nationalism
under discussion in that great country of 320,000,000 of people—
the development of ordered liberty under British control, through
the Montagu- Chelmsford policy and legislation of 1920, which the
Duke was to inaugurate; and the policy of anti-British action and
separatist effort and advocacy which were concentrated under the
name and varied ideals of M. K. Gandhi. The arrival of the Duke
at Madras on Jan. 10 was the signal for a cordial welcome by leaders
and natives alike and this attitude was maintained in most of the
centres visited and through all the great functions which followed.
The Duke's previous popularity as Governor-General of Canada
added interest to the rather vague outlook of Canada upon Indian
conditions. The keynote of his speeches was given at Madras:
"You stand to-day at the threshold of a new era. New, grave
problems confront you. The time has come when the responsibility
which rests on every individual citizen is far greater than ever be-
fore. From the issues which are now being hammered out, none
can afford to stand aloof, x x x The people of Great Britain
take a deep and rightful pride in the great work which has been
accomplished in the past and is still to-day being accomplished by
the British services in India ; they take an equal pride in the position
which India is so rapidly attaining in the eyes of the world to-day
through Indian enterprises, brains, self-help, and patriotism/' At
Calcutta the Bengal Legislative Council was inaugurated on
Feb. 1st with, said the Duke, three problems especially confronting
the Ministers and Council: (1) The meeting of the popular demand
for education; (2) the creation of industrial opportunities and the
industrial spirit, so as to relieve the pressure on the land; and (3)
the heightening of the standard of health and vitality. In the
Imperial capital at Delhi, on Feb. 9, the Duke of Connaught, as the
King-Emperor's personal representative and as the spokesman, also,
of the British Empire, inaugurated the new era of self-government,
a new system of administration for 320,000,000 of people.
The Chamber of Princes which was first opened by the Duke,
was to be directly concerned with the rights and welfare of one-fifth
of the population of British India proper; the attendance included
NATIONALISM IN THE EMPIRE; ITS 1921 DEVELOPMENTS 175
80 rulers of 50,000,000 souls. The Chamber was a consultative
and not executive body; its functions were to make recommenda-
tions relating to the maintenance of treaties and of the rights and
privileges of the Princes and their States; to discuss and make
representations upon matters of Imperial or common concern and
on subjects referred to the Chamber by the Viceroy; to appoint
Committees of experts in technical or other intricate questions.
The new Parliament of India was then opened including the Council
of State or Upper House and the Imperial Legislative Assembly
which, together, replaced the old Legislative Council and were
largely composed of members directly elected by distinct constitu-
encies. Following the presentation of a Message from the King-
Emperor and the delivery of an address by the Viceroy — Lord
Chelmsford — was the inaugural speech of the Duke of Connaught.
Every word was carefully chosen, weighty, forcible, instinct with
statecraft and political wisdom. Only one quotation can be given :
In the annals of the world there is not, so far as I know, an exact parallel for
the constitutional change which this function initiates; there is certainly no
parallel for the method of that change. Political freedom has often been won by
revolution, by tumult, by civil war, as the price of peace and public safety. How
rarely has it been the free gift of one people to another, in response to a growing
wish for greater liberty, and to growing evidence of fitness for its enjoyment.
Such, however, is the position of India to-day.
It was a wonderful function, such as only India amongst all the
countries of the world could produce — a panorama of brilliance and
magnificence. Side by side with the silken splendours and blaze
of priceless gems in the Chamber of Princes, was the plain, digni-
fied picture of the Parliamentary ceremonies which might have been
a duplicate, in many respects, of the yearly opening of the British
Parliament. The Duke was at Bombay on Feb. 23 and there
opened another Legislative Council — equivalent, in many respects,
to Provincial Legislatures in the Dominions ; from there he embarked
for England on the 28th.
The other form of Nationalism in India was based upon the
ignorance and credulity of a teeming mass of millions of whom all
but six per cent, were not only illiterate but with absolutely no
conception of even the meaning of self-government, popular rule,
civilization or Christianity; without ability to read or write in any
language and with infinitely varied religions which, in immense
areas, involved only the crudest worship of idols; with 150 different
languages spoken, with diverse religious rites, utterly discordant
prejudices, intense hatreds, iron-clad castes, conflicting customs.
Gandhi, himself, was originally rich and clever, of cultivated manner
and address, educated and a College graduate, a lawyer by profes-
sion. He became a religious mystic, took vows of poverty and
lived a life of protest to all things British — first in South Africa and
then in India; founded the All-India Swaraj Sabha (Self-Govern -
ment Society) and obtained control of the hitherto moderate Indian
National Congress at its 1920 meeting; organized his non-co-opera-
tive movement under the alleged inspiration of Tolstoi idealisms
and boycotted, so far as he and his followers could, British employ-
176 THE CANADIAN ANNUAL REVIEW
ment, British schools and colleges, British titles, British merchan-
dise and manufactures. Intense hostility to Great Britain, entire
separation from the Empire, was his outlook.
Gandhi succeeded in doing what no other Indian agitator had
ever done — uniting a section of the Mohammedans (numbering
67,000,000) with a few of the Hindus who totalled 218,000,000.
The Mohammedan leaders were Mohammed AH and his brother
who added words of violence to doctrines of passive non-cooperation,
suffered imprisonment and made humble apologies to the Govern-
ment; the appeal to Mohammedans was an unscrupulous descrip-
tion of Britain's war with the Turks as a war upon the Holy Cities
of the Prophet and the faith of many million Indian people. The
demands of the Moslem League of India and of the Moslem mem-
bers of the Council of State and Legislative Assembly at Delhi,
were practically the re-instatement of the Sultan as ruler and of
Turkey in Europe and Asia, with "Turkish independence and
autonomy a reality"; the return to Turkish power of Thrace,
Adrianople, Smyrna, etc. ; the return of Moslem Holy places to the
control of the Sultan who, as Caliph, was spiritual head of the Mos-
lem world but whose right to that position depended upon his being
Lord of Arabia and Protector of the Holy Cities of Mecca and
Medina. Both of these conditions, under British diplomacy, were
now fulfilled by King Feisal of Arabia! At the same time, it was
British diplomacy at Versailles which had prevented the Turks from
being driven out of Constantinople and this was instigated by a
sense of responsibility to the immense Moslem population of India.
Hence the agitators and the element which Gandhi was able to
weave into his subtle web of propaganda and unrest — aided by the
basis of German plots during the War and Bolshevist propaganda
since then.
To Gandhi and his Hindu followers Swaraj, or Home Rule,
really meant Hindu government of India; to the Moslem followers
(temporarily) of Gandhi it meant Moslem control of India; to the
Princes and rulers of either race or religion it meant rule by them-
selves; to the great masses it meant nothing at all. In his writings
and speeches Gandhi at this time was wholly illogical. According
to quotations in the Servant of India (Jan. 20) he wrote in his
personal organ called Young India that: "I do really believe that
anarchy will be preferable to a continuance of the orderly humilia-
tion and emasculation of a whole nation" — that is, to British govern-
ment. His belief "in the ultimate goodness of human nature" made
him reject any fear that, if the British withdrew, other nations would
pounce upon India: "If they did, India will respond either by
using the same matchless weapon of non-cooperation or will, when
the paralyzing arm of Britain is removed, produce a nationalist
Akbar who will make effective use of brute force." His platform
was a very simple one on the surface and its chief conditions were as
follows :
1. Cultivating the spirit of non-violence.
2. Setting up National Congress organizations in every village.
NATIONALISM IN THE EMPIRE; ITS 1921 DEVELOPMENTS 177
3. Introducing the spinning wheel in every home and manufacturing all the
cloth required for our wants, through the village weaver.
4. Collecting as much money as possible.
5. Promoting Hindu-Moslem unity.
6. Ridding Hinduism of the curse of untouchability and otherwise purifying
ourselves by avoiding intoxicating drinks and drugs.
There followed in 1921 the Moplah rebellion and cruelties and
massacres by Moslem fanatics; the unsuccessful boycott against
the Schools and the new Councils with the failure of attempted
non-cooperation in the ensuing elections; the Hartal or attempted
strike against the Prince of Wales and its collapse, except in two or
three instances; the sending of a Moslem deputation at the instiga-
tion of Gandhi to Europe to obtain better terms for Turkey; the
formation in New York and elsewhere in the United States of the
Friends of Freedom for India — an organization to help the "in-
dependence" of that Empire from Great Britain; the Russian Soviet
attempt to encourage an Afghan invasion of India and a final treaty
of peace between the Amir and England; the establishment of the
cotton and tea boycotts and native strikes against consumption or
production with restlessness and violence at many points — com-
mencing in Malabar and culminating at Bombay and in the mill
area of Madras.
In the main non-cooperation failed and its leader feared to go to
the logical end of civil disobedience of law though, on Nov. 6,
the All-India National Congress Committee at Delhi accepted Mr.
Gandhi's Resolution favouring civil disobedience — including non-
payment of taxes. As H. E. Lord Reading pointed out at Simla
on Sept. 2nd the results of the agitation were evil and in such cases
as the Moplahs disastrous: "Passions are easily excited to unreason-
ing fury. Although I freely acknowledge that the leader of the
movement to paralyze authority persistently preaches the doctrine
of no-violence yet, again and again, it has been shown that his doc-
trine is completely forgotten and his exhortations absolutely dis-
regarded when passions are excited, as must inevitably be the con-
sequence amongst emotional people. To us, who are responsible
for the peace and good government of this great Empire, it must be
clear that defiance of the Government and constituted authority
can result only in widespread disorders, in political chaos, in anarchy,
and in ruin."
Interjected, on Nov. 19, into the atmosphere of turbulence and
the bloodshed of Bombay riots was a Manifesto from the leader.
Non-cooperators, he said, could not escape their liability: "Nor can I
shirk my own personal responsibility. I am more instrumental than
any other in bringing into being the spirit of revolt. I find myself
not fully capable of controlling and disciplining that spirit. I must
do penance for it !" After this Mr. Gandhi stated that he, personal-
ly, had come to the conclusion that civil disobedience could not be
started for the present, as he was unable to conduct the campaign
unless a completely non-violent spirit were generated amongst the
people. Following these events the AH brothers were arrested and
J78 THE CANADIAN ANNUAL REVIEW
sentenced to 2 years' imprisonment for attempting to promote
sedition amongst the troops; in December Government action was
taken in Calcutta and at other centres against non-cooperators and
many arrests made including C. R. Das, President-elect of the All-
India Congress; everywhere the ignorant villagers of interior Pro-
vinces were inclined to endow Gandhi with supernatural powers and
to give him the popular designation of Mahatma or Saint.
The Indian National Congress met at Ahmedabad on Dec.
28-29. For many years representative of moderate and sane efforts
for educating the people up to self-government it had in 1920 passed
wholly into the hands of Gandhi and his followers. There were
12,000 in attendance, including thousands of youths, and Gandhi
was Dictator; under his influence the Congress stood for non-
cooperation with no violence and not for civil disobedience. A
motion providing that complete independence from the British
Empire should be attained by "possible and proper means" instead
of by "legitimate and peaceful means" was frustrated by Gandhi
himself, who warned the Congress against alienating the sym-
pathies of the moderates. On the other hand at the All-Indian
Moslem League held at the same place on Dec. 31 and with Gandhi
present, Hasral Mohani, the President, urged the immediate organ-
ization of an Indian republic to be called the United States of India;
to be established by force and through guerilla warfare if necessary;
to provide for two parallel governments — one Hindu and one Mos-
lem in character. At Allahabad on Dec. 29 the All-India Liberal
Federation met with Govind Araghava Iyer in the chair; in his ad-
dress he declared it was the duty of the Liberals to offer their most
loyal and cordial welcome to the Prince of Wales, urged them to
strive for full Dominion status within the British Empire and point-
ed out that co-operation always had been the Liberal motto.
Such were a few of the varied currents running through the
kaleidoscopic movements of Indian life in 1921. They were largely
surface in their manifestations and powers ; they represented opinions
controlled and voiced by a few men educated in Indian schools and
colleges; they were not strong except where based upon the root
issue of suspicion, or hatred, or fear of things Western — guided by
men trained in Western culture and ideals and nominally seeking
Western institutions. In the States of ruling Princes, where power
was wielded in the Oriental manner, there was no trouble, no sedi-
tious press, no riots or threatened rebellion; only where the British
were inculcating principles of liberty, spreading education, develop-
ing the material well-being of the people and refusing to exercise
despotic power or use force until absolutely compelled, did this
extraordinary development of a new Eastern Nationalism arise.
It proved, absolutely, the great responsibility of those Englishmen
who were attempting to graft Western ideas and institutions upon
the ancient tree of Indian Oriental life.
Nationalism in Egypt — The Policy of Zaghlul. How far
Egypt really was in the British Empire during 1921 is a technical
question; that she was closely associated with it was obvious and
NATIONALISM IN THE EMPIRE; ITS 1921 DEVELOPMENTS 179
that she remained and would remain so became clear despite the
developments of this and the following year. There had been a
British Protectorate above and around the country and a Sultan
with nominal power and complete constitutional rights within the
nation; there was a British High Commissioner looking after the
people's real interests and guarding British trading and individual
rights and interests in the Suez Canal region and the Soudan ; under
pending and afterwards completed arrangements — following out
Lord Milner's Report — there was to be a King in place of a Sultan and
the High Commissioner became a sort of British Ambassador; a so-
called independent nation was established in place of a Protectorate.
In reality the situation was about the same with the names
changed. As the statement issued by Lord Curzon, British Foreign
Secretary, put it early in 1921, so it developed in the final arrange-
ments: "The Government must have full and effective guarantees
(1) that their Imperial communications, to which Egypt is essential,
are assured ; (2) that Great Britain retain both the right and power
to afford that protection to the foreign communities in Egypt which
the Governments of these peoples in the existing conditions look to
her to supply ; and (3) that Egypt is safeguarded against all foreign
interference or aggression, direct or indirect." But during this year
there were many stormy scenes and incidents before a settlement was
effected.
Since 1918, and the Armistice, Zaghlul Pasha, a son of the
Fellaheen, had led an agitation for complete independence of the
Protectorate assumed in 1914. The arguments for maintaining the
present situation were (1) the better administration of Egyptian
affairs ; (2) the more productive development of Egyptian interests :
(3) the fact of Egypt being a key to India and a great strategic
position. Lloyd George and his Government claimed that British
interests could be safeguarded without an actual Protectorate.
Writing to the London Times on Mch. 14 Prince Ibrahim Hilmy, a
a brother of the Sultan, urged Great Britain not to abandon its
position in Egypt and, in the interest of the 14,000,000 people of that
country — of whom 92 per cent, were absolutely illiterate and ignor-
ant— not to abandon control. In April, 1921 Zaghlul arrived home
from Europe and had an enthusiastic popular reception at Alex-
andria and Cairo — municipal arches and decorations and tremen-
dous demonstrations; he placed himself in keen hostility to Adly
Pasha Yeghen, the Premier, an aristocrat and relation of the Sultan,
and violent riots followed which were chiefly directed against British
control or guidance and affected the personal safety of many of the
24,000 British people in the country.
During four months from July 1 1, when they arrived in London,
a Delegation led by Adly Pasha was negotiating with Lord Curzon
but in November the negotiations broke down — chiefly because of
the proposed maintenance of British troops in the interior of Egypt
and the appointment of British Financial and Judicial Commis-
sioners. Disturbances followed, Nationalist demonstrations be-
came serious and Zaghlul was arrested and deported toward the end
180
THE CANADIAN ANNUAL REVIEW
of December*. His Nationalist policy was hostile to any com-
promise or friendly arrangement with Britain ; he had instigated in
the country, or out of it several attempted revolts and serious riots
in Egypt within recent years; toward the close of 1921 he acquired
some influence over Adly Pasha and caused him to reject proposals
and plans previously presented to the British Government and
accepted by them. Zaghlul's demands, which could not be acceded
to, were full Egyptian control of the Soudan which Egypt could
neither administer nor hold, and exclusion of all British troops
from the country and the Suez Canal. In the end extremist
Nationalism was defeated after it had caused much trouble and
confusion.
Empire In-
terests and
Incidents
Affecting
Canada in
1921.
Apart from its purely British relationship and
the many Conferences of the year which brought its
leaders into friendly relations with their fellows else-
where in the Empire — Forestry, Universities, Teach-
ers, Veterans, Agriculture, etc. — Canada touched
Empire interests and nations at many points.
Empire Day continued to grow in favour in the
United Kingdom — especially in the schools — and Sir George Perley
addressed a great gathering of children in the Guildhall, London,
while the Duke of Connaught inspected Boy Scouts and the London
Stock Exchange opened business with the National Anthem; in
Canada the day was marked by many patriotic celebrations in the
schools.
Canada was interested in the agreement as to German Repara-
tions arrived at in the Spa Conference of July 16, and signed by the
Powers concerned, under which the British Empire was to get 22
per cent., France 52 per cent., Italy 10 per cent., Belgium 8 per cent.,
Japan and Portugal three-quarters of one per cent, with the balance
divided amongst the lesser Allies. Another interesting fact was the
annual purchase by Agents for the Crown Colonies in London of
stores and materials valued at £500,000,000. Canadian firms
were eligible to compete for contracts, subject to being first admitted
to the Crown Agents' list of contractors, but the time allowed for
submission of tenders was usually so short that only firms responsibly
represented in London were in a position to bid for orders. Aus-
tralian exporters secured an important concession in the case of the
Straits Settlement, which permitted them to learn the requirements
in Australia simultaneously with the publication of advertisements
inviting tenders in London and something of this kind was suggested
for Canada.
During March it was officially stated in the Commons that in
1920 the exports of purely British manufactures to the United States
had totalled £77,131,000 and to the British Dominions — Canada
Australia, New Zealand, South Africa and British India — £362,-
362,000; those to Canada alone were £42,782,000 or more than half
NOTE.— *The settlement finally arrived at early in 1922 is briefly indicated at the beginning
of this Section.
EMPIRE INTERESTS AND INCIDENTS AFFECTING CANADA 181
the total export to 100,000,000 Americans. Early in January W. C.
Noxon had closed up the Canadian Trade Commission of war-
time effort in London and, later in the year, he returned as Agent-
General for Ontario; during this winter Percy Hutchinson, the
British playwright and actor, carried a British Company through
Canada and had a most cordial welcome, in an extended effort of 8
months' duration, to add British dramatic art to the wide national
recognition of the American stage which was and is inevitable in
Canada. He told the Times on his return in August that it was now
possible for an English manager to arrange a tour through Canada,
without having to rely on theatres in the United States at all. In
Canada, alone, there was a circuit of 80 theatres, all of which were
anxious to welcome good British productions.
On and after June 18 Canadian postal rates were altered in
accordance with instructions issued by the Post Office Department,
with letter postage to the United Kingdom raised to four cents for
the first ounce and on post-cards to three cents — the preference in
postage being thus given to the United States. About the same
time a British proposal to increase the rates of postage on printed
matter sent overseas aroused the firmest opposition from British
traders, from the British newspaper press, and also from all who
were concerned in strengthening the link between Britain and such
overseas countries as Canada. Finally, on June 9, Mr. Kellaway,
Postmaster General, announced the decision to withdraw this
policy; there would be no increases on newspaper and magazine
rates to Canada. In August there was a vigorous propaganda in
Canada, through German-published booklets written by F. Hausen
of Hamburg, vilifying and denouncing Great Britain and the
Empire. C. G. MacNeil, Secretary of the G.W.V.A., Dominion
Command, on Aug. 23 announced that his organization would take
up the matter and, meanwhile, he protested to the Post Office
Department against the circulation of such literature.
On Mch. 8 a meeting was held in London, England, to discuss
the formation of a Canadian Chamber of Commerce ; Rt. Hon. F. G.
Kellaway, M.P., then Minister of Overseas Trade and Commerce,
was present, with a large number of business men and bankers in-
terested in Canadian trade. F. C. Wade, K.C., Agent-General for
British Columbia, presided: Mr. Kellaway spoke, as did Sir James
Dunn, W. Grant Morden, M.P., Charles Cambie, Lieut. -Col. P.
Pelleter, and other Canadians in London; a Committee was ap-
pointed to organize such a Chamber. On May 9 a further step was
taken and an Executive Council appointed composed of representa-
tive Canadians in London finance and trade. Sir George Perley,
K.C.M.G., was elected Hon. President, and Sir Edgar Browning,
High Commissioner for Newfoundland, Hon. Vice-President; Sir G.
McLaren Brown, K.B.E., was President, Lieut. -Col. W. Grant
Morden, M.P., and H. Robinson, Vice-Presidents; R. B. Stewart
Hon. Treasurer and Acting Secretary. The objects were described
in the press (May 19) by Mr. Stewart as the bringing of British
consumers in touch with the Canadian producers — to improve and
182 THE CANADIAN ANNUAL REVIEW
strengthen trade relations between the United Kingdom and the
Dominion :
(1) By a reliable Bureau of Information and a Bureau of
Publicity ;
(2) By establishing a Sample Room for Canadian products in
London and collecting Statistical information for Canadian trade
interests in Britain;
(3) By keeping in close touch with the Imperial Department of
Overseas Trade, the Federation of British Industries, the British
Manufacturers' Association, the Imperial Resources Committee
and other British organizations having in view the development of
Empire trade;
(4) By watching legislation in the United Kingdom and else-
where which might affect the development of Canadian trade;
(5) By promoting the sale of approved standard products and
preventing trade imposition, and protecting the reputation of
Canadian trade;
(6) By constituting a Committee to receive all complaints with
regard to differences arising between Canadian trade interests and
those on this side of the Atlantic, through mistake, misunderstand-
ing^or otherwise;
ft: (7) By conducting, through official bulletins, an educational
programme so as to bring the attention of the Canadian export
trade to the importance of the London market as a centre of all
European demands ;
(8) By maintaining a schedule of trade congresses as well as
exhibitions and fairs where Canadian trade interests could be dis-
cussed and Canadian trade products could be exhibited to advantage.
An Empire Forestry Association was formed on Nov. 16 at the
Guildhall with H.M. the King as Patron and the Prince of Wales as
the first President. This action was the direct result of the delibera-
tions of the Imperial Forestry Conference of July, 1920, which drew
attention to the fact that the absence of a continuous and con-
structive forest policy in many parts of the Empire was permitting
the gradual destruction of great sylvan resources without adequate
provision for renewal. The Canadian delegates at this gathering
had been H. H. Finlayson, Robson Black, Clyde Leavitt, W. E.
Kilby and EHwood Wilson of Ottawa, M. A. Grainger of Victoria
and M. Bedard, Quebec. The new Association was formed to serve
as a link between associations and individuals engaged in the work
of Forestry in all parts of the Empire, and to arouse public interest
in this subject. The Governing Council represented the United
Kingdom, the Dominions, India, the Crown Colonies, and Pro-
tectorates.
Another organization formed at this time was the Canadian
Club of Great Britain which was duly constituted on Aug. 30 with
66 members who shortly after grew to 100; the meeting was largely
composed of Canadian officers in the late War and C. Lionel Han-
EMPIRE INTERESTS AND INCIDENTS AFFECTING CANADA 183
ington was appointed President, G. M. Moon, Vice- President; the
Committee included A. Beverley Baxter, the writer, A. Lome Camp-
bell, C.M.G., C. G. D. Roberts, LL.D., poet, historian and novelist,
and E. R. Wayland, C.M.G. ; G. H. Ward was Hon. Secretary and
W. H. Rice, Hon. Treasurer. The qualifications for membership
were (1) Canadian birth; (2) 12 months' residence in Canada; or
(3) service in the Canadian Forces. The Services Club, Stratford
Place, was to be the headquarters of the Club. Its first function
was a dinner given on Sept. 14 by F. C. Wade in honour of Hon.
F. D. Pattullo of British Columbia and W. C. Noxon of Ontario.
A matter of interest during the year was the organization of the
Provincial Cinematograph Company, said to be controlled by Lord
Beaverbrook and in which the paid-up capital was $11,000,000;
Lord Ashfield, Chairman of Underground Railways, Sir H. Cun-
liffe-Owen and Andrew Holt (son of Sir Herbert Holt of Montreal)
joined the Board in May and it was hoped that close relations
would be established with Canadian theatres; about this time the
Manitoba Censor Board was responsible for a statement that out of
6,585 censored reels in that Province only 65 were British. In
November the British Admiralty, which recently had promised
that in awarding of future contracts Canadian timber would be
given a preference, now undertook to pursue the same course with
Canadian salmon.
British visitors to Canada during 1921 were increasingly
numerous. Sir John Martin Harvey, the famous English actor,
made a tour of Canada early in the year, met with a very apprecia-
tive reception and addressed Canadian Clubs at Toronto, Hamilton
and other points. Sir Campbell Stuart, K.B.E., the newly appointed
Managing Director of the The Times, and of an old Canadian family
in Montreal, was in Toronto, Kingston, etc. during May. The Rt.
Hon. J. W. Lowther, D.C.L., LL.D., for 16 years Speaker of the British
House of Commons and who, upon his return from this trip was
created Viscount Ullswater, came to Canada in May to present a
Speakers' Chair to the Commons of Canada from the British Cham-
ber. The presentation was made through the United Kingdom
branch of the Empire Parliamentary Association with Mr. Lowther
as spokesman and the event took place at Ottawa on May 20 with
a crowded House and galleries ; the Senate members were in attend
ance and the Governor-General (the Duke of Devonshire) sat on the
right of the Speaker — Hon. Edgar N. Rhodes.
Mr. Lowther stated that the Chair in question was an exact
replica of the Speakers' Chair in the House of Commons, London,
which was erected in that building in 1844: "Above the Chair, in
the canopy, you will observe, when the flags are removed, the Royal
Coat of Arms. This is carved out of a piece of oak which until
recently formed part of the roof of Westminster Hall, which was
erected in the time of Richard II, in the year 1397." There was, he
believed, something specially significant in this function and the
gift itself: "It acknowledges, I think, the great principle which has
been accepted by Great Britain and by all the Dominions within
184 THE CANADIAN ANNUAL REVIEW
the British Empire, that Government of the people, by the people,
and for the people, is best carried out through Parliamentary in-
stitutions." After a few words in French Mr. Meighen, as Prime
Minister, Sir Robert Borden, Mr. Mackenzie King, Hon. T. A.
Crerar and Hon. R. Lemieux also spoke, while H. E. the Duke of
Devonshire added a brief tribute to Mr. Lowther. The Canadian
branch of the Empire Parliamentary Association gave a dinner in
Mr. Lowther's honour (May 21) with speeches by various political
leaders. He also addressed the Canadian Club, Ottawa, on the 25th
and that of Victoria, B.C., on June 6, the Empire Club, Toronto, on
June 14.
Sir Arnold T. Wilson, British Civil Commissioner in Mesopo-
tamia and now Managing- Director of the Anglo-Persian Oil Co.,
was in Montreal on June 4; Lord Northcliffe, accompanied by H.
Wickham Steed, Editor of the London Times, visited the same
City on Aug. 3rd and left in the afternoon for Vancouver and the
Far East; B. H. Morgan, Chairman of the Empire Producers'
Association of London was interviewed at Montreal on Aug. 9 and
described his organization as "an advisory body composed of
representatives of every kind of industrial product, from every
country within the British Empire, and its policy as the encourage-
ment of wider trading by finding markets and facilitating contracts."
The Rt. Hon. Sir John Simon, K.C.V.O., K.C., ex-M.p., a distinguished
Liberal leader and one-time Attorney- General, was in Winnipeg
on Aug. 17 when he addressed the Canadian Club; he was at Van-
couver on Aug. 25 and on his return East addressed the annual
Convention of the Canadian Bar Association at Ottawa (Sept. 8) ;
he spoke to the Law Society of Upper Canada, Toronto, on the 9th
as to "Our common inheritance — the Common Law."
Adminstration of Palestine: Canada and the Jews.
I Canadians, and especially the considerable Jewish population of
Canada, took great interest in the British government of Palestine
during the year. Sir Herbert Samuels, the High Commissioner and
British ruler of this historic country, had no easy task in 192 1 . The
Arab-Moslem population numbered 500,000, the Jews about 65,000
and the Christians 65,000, while both Moslems and Christians were
bitterly hostile to the proposed theory of free institutions and to any
idea of making Palestine a National home for the Jews. . Difficulties
were enhanced by the objection of Roman Catholics to the Jews
being given any supremacy or control and by the Pope's allocution
to the Consistory of June 14 when he urged an examination and
revision of the British Mandate in Palestine. Meanwhile, Winston
Churchill, Secretary for the Colonies, had been visiting this country
and Mesopotamia. Speaking at Jerusalem on Mch. 31 to a Depu-
tation of Moslem, Christian and Arab chiefs, who urged their objec-
tion to British policy, Mr. Churchill was emphatic :
I consider your address partly partisan and incorrect. You ask me to repudi-
ate the Balfour declaration and stop immigration. This is not in my power and
is not my wish x x x Moreover, it is manifestly right that the scattered
Jews should have a National centre and a National home in which they may be
EMPIRE INTERESTS AND INCIDENTS AFFECTING CANADA 185
re-united, and where else but in Palestine, with which the Jews for 3,000 years
have been intimately and profoundly associated? We think it is good for the
world, good for the Jews, and good for the British Empire, and it is also good for
the Arabs dwelling in Palestine, and we intend it to be so. They shall not be
supplanted nor suffer, but they shall share in the benefits and the progress of
Zionism. I draw your attention to the second part of the Balfour declaration
emphasizing the sacredness of your civil and religious rights. I am sorry you
regard it as valueless. It is vital to you, and you should hold and claim' it firmly.
If one promise stands, so does the other. We shall faithfully fulfil both, x x x
Great Britain is the greatest Moslem State in the world, and is well disposed to
the Arabs and cherishes their friendship.
On June 14 Mr. Churchill told the Commons at home that the
enthusiastic declarations of the Zionist organizations through the
world, with their ardent hope and aim of making Palestine a pre-
dominantly Jewish country, peopled by Jews from every region,
had alarmed the Arabs — who particularly feared the Jews from
Central Europe. Under the Mandate, however, only 7,000 Jews
had so far been brought in and future immigration would be care-
fully controlled. He quoted Britain's promise made in 1917,
through Mr. Balfour, to aid in establishing a Jewish National home
in Palestine and also to, re-constitute the Arab nation, its influence
and authority. Mesopotamia was being organized as the Arab
State of Irak; as to Palestine "we cannot possibly agree to allow the
Jewish colonies to be wrecked or future immigration to be stopped
without definitely accepting the position that the word of Britain
no longer counts through the East or the Middle East." Later, a
Report for the year ending June 30, 1921, upon the Civil Adminis-
tration of Palestine was published by the Government. The follow-
ing statements and review of conditions were given : ,
The administration of the country, entrusted to the High Commissioner, is
conducted through a Staff, the heads of which, both in the central Departments
and in the Districts, are British. A new framework of government has had to be
constructed; it has been found necessary in certain cases to introduce new laws
and regulations; experienced administrators, familiar with Western methods and
impartial in local disputes, have been indispensable. But, as the preliminary
work is completed, and as Palestinians possessing the necessary qualities can be
chosen and trained to administrative work, it is intended to reduce the number of
British and to increase the number of Palestinian officials. This process has,
indeed, already begun.
In October, 1920, an Advisory Council was constituted. It consists of 10
unofficial members nominated by the High Commissioner, of whom four are
Moslems, three Christians, and three Jews, and of 10 members of the Administra-
tion, xxx Steps are now being taken to frame a constitution for the country,
which will include an elective element, and the leaders of the various sections of
the population are being consulted as to its terms.
Meanwhile, Canadian Jews were stirred up and deeply in-
terested in these developments; the Zionists, canvassing amonjj
Jews alone, but accepting subscriptions from any other source,
sought to raise $500,000, to be used in the initial expenses of develop-
ment in the Holy Land; elsewhere amongst the 14,000,000 Jews
whom Sir Herbert Samuels estimated as being scattered amongst
the nations of the world, similar movements were in progress though
no large sums were as yet provided. British protection of the Holy
Places of Christianity was, meantime, assured — as, in these re-
186
THE CANADIAN ANNUAL REVIEW
markable developments, was British protection of the Holy Places
of the Moslem. During the year Dr. Gham Weizmann, eminent
Scientist and President of the World's Zionist Organization, made
a tour of Canada in the interest of the Fund mentioned above.
He was welcomed at Montreal on May 1st and discussed the
political and physical difficulties of re-building a whole country in
the manner needed to make Palestine a Jewish homestead. He
claimed that in agriculture it was only necessary for people to get
to work, and soon again there would be a land "flowing with milk
and honey;" he looked forward also to the industrial development
of the country, but considered the question of Jewish culture and the
establishment of the University of Jerusalem to be of greater im-
portance. At Ottawa, the Governor-General and Mr. Premier
Meighen attended a luncheon given to Dr. Weizmann with A. J.
Freiman, President of the Zionist Federation of Canada, in the chair.
The visitor stated that immigrants were coming in from Soviet
Russia, from Poland, from Roumania, from the East and from the
Balkans ; young men and women, well educated, many of them college
graduates, were entering Palestine and were set to work building
roads, draining marshes, and reconstructing the country. In .
Toronto (May 6) he declared that British and Jewish interests in
Palestine were now identical and anti- Jewish uprisings were plainly
an attempted blow at Britain.
Here, as in Montreal, he inaugurated the campaign for a
$1,000,000 Fund ; at the close of a Jewish women's luncheon to Mrs.
Weizmann, jewels were poured out freely upon the table until it was
piled with gold bracelets, rings set in diamonds, rubies, pearls and
sapphires, gold watches and gold coins and pearl necklaces, and
brooches. At Hamilton, as in Toronto, considerable amounts were
pledged and at a dinner in Montreal given (May 9) by Mark
Workman a total of $100,000 was collected — started by $10,000 each
from Mr. Workman and Mr. Freiman of Ottawa. Later Dr.
Weizmann was in the West and at Regina on June 16 that City and
I the Province pledged $25,000. During the year a total of $500,000
1 was pledged and about half of this paid up. At Karlsbad, Czecho-
slovakia, on Sept. 3rd, following, Dr. Weizmann was received by a
Government representative with Sir George Clark, British Minister
at Prague, also present, who stated officially that: "The British
Government views with favour the establishment of Palestine as a
National home for the Jewish people." At this time the British
troops kept in Palestine were costing the home taxpayer $12,000,000
a year.
In the summer the Very Rev. Dr. J. H. Hertz, Chief Rabbi of
Britain and the British Empire visited Canada after a tour of
Australia, New Zealand and South Africa; at Victoria on July 5 he
told the Canadian Club that "all forward-looking, sane men through-
out the Empire realize that the British commonwealth of nations is....
the earth's nearest realization of might wedded to mercy, of power
coupled with humanity, and of freedom, both national and ethnic."
At Calgary he eulogized the Bible, at length, as the "greatest collec-
EMPIRE INTERESTS AND INCIDENTS AFFECTING CANADA 187
tion of literature, science, philosophy, criminology, sociology and
moral teaching in existence," and as standing unchallenged through-
out eternity. At Edmonton (July 12) he dealt with the British
loyalty of the Jews and declared the purpose of his tour was "to
unify and fortify the spiritual forces of the Jewish community."
At Winnipeg (July 24) he delivered a brilliant eulogy of Palestine :
"The land of the Book is as peculiar among lands as the Bible
among books. It is a country of contrasted heights and depths,
of deserts and flower-gardens, of wildernesses and highways of
commerce, the hub of the universe, the centre of three continents —
Europe, Asia and Africa — the meeting place of the world's roads and
communications, the link between the Nile and the Euphrates,
between the Hittites in the North and the Sabeans in the South.
It has been overrun by the Egyptian, Byzantine, Babylonian,
Macedonian, Turkish and Greek empires; now the dream is to re-
construct it as a National home for the Jews." Dr. Hertz was in
Toronto on July 30, St. John on Aug. 10 and visited other centres
in the East before leaving for home.
Titles in Canada: Grants by Foreign Rulers. An inter-
esting though not widespread discussion developed in this year as
the result of a free acceptance of titles and honours from Foreign
rulers; at the same time, a portion of the press continued to de-
nounce all suggestions that the Sovereign of the Dominion, himself,
should be asked to resume the conferment of British titles under
advice of the Canadian Government. It was pointed out that
Canadians in England or Australia or India could receive honours
and rewards from the King for public services rendered but not
Canadians in Canada; that Canadians in Canada could accept
honours from the President of France, the Emperor of Japan or the
President of the United States, but could not be offered them by
their own King or Government; that men who had won military
distinction in the War were still receiving military honours but that
no Canadian civilian, no matter how great his services, could receive
any titular recognition whatever from the Nation or its head.
The reply was the argument which had become so familiar in 1919 —
that democracy should not permit such titles or honours, that public
service should be rendered without reward from the State, that such
distinctions were incompatible with the spirit of Canadianism and
the doctrine of universal equality. Meantime, in 1920 and 1921
the following Foreign honours, amongst many others, were granted
Canadians :
Honour Name Place Ruler
Chevalier of the Order of Leopold J. H. Woods Calgary King of the Belgians
Grand Cordon of the Order of
Leopold Rt. Hon. Sir Charles Fitz-
patrick Quebec King of the Belgians
Commandeur Order of Leopold Maj.-Gen. Sir F. O. W. Loomis Montreal.... King of the Belgians
Commandeur Order of Leopold Brig.-Gen. C. J. Armstrong Montreal.... King of the Belgians
Chevalier Legion of Honour Lieut. J. L- O. R. Girard Montreal.... President of French
Republic
Red Cross of Serbia Mrs. W. E. Sanford Hamilton... King of the Serbs
Knight Commander of the Order
of St. Gregory Hon. W. F. A. Turgeon Regina His Holiness the Pope
188
THE CANADIAN ANNUAL REVIEW
Honour Name Place
Commandeur of the Legion of
Honour : General Sir W. G. Gwatkin Ottawa...
Commandeur of the Legion of
Honour Maj.-Gen. Sir H. E. Burstall... .Ottawa....
.Ottawa....
.Brussels..
.Quebec
.Ottawa...
.Toronto..
.Toronto..
Knight of the Order of the Crown.. Hon. H. S. Beland, M.P
Chevalier Order of Leopold Godefroi Langlois
Knight of the Order of Danilo A. O. Penny
Knight of the Order of the Sacred
Treasure Maj.-Gen. J. H. Elmsley
Knight of the Order of the Sacred
Treasure Brig.-Gen. H. C. Bickford
Knight of the Order of Regina
Maria Noel Marshall
Ruler
President of French
Republic
.President of French
Republic
.King of the Belgians
.King of the Belgians
.King of Montenegro
.Emperor of Japan
Emperor of Japan
.King of Roumania
During this period, also, Canadians, like Americans, were
creating and using titles of their own. The Illustrious Potentates
and other great personages of the Mystic Shriners were well-
known in Canada; the Grand Encampment of the I.O.O.F. in
Toronto on Sept. 20 conferred the Grand Decoration of Chivalry
upon a number of members; the Knights of Malta at Brantford on
June 26 conferred the title of Knight of the Red Cross and Sepulchre
upon George Giblock, the Grand Chancellor; the Grand Black
Chapter of Saskatchewan was presided over by its well-known
Grand Master whom the Order had created "Sir" Stewart Adrian
and so with other Provincial Chapters. In England the following
Canadians who had distinguished themselves in various spheres of
British life were honoured by the King in 1921: Baronet — Donald
MacMaster, K.C., M.P., a prominent lawyer and politician ; Baronet-
James Hamnet Dunn, a financier and head of Dunn, Fisher & Co. ;
K.B.E. and C.B. — Maj.-Gen. Dudley Ridout, Commanding
troops in the Straits Settlements.
Newfound-
land in 1921:
Canadian
Relations
with the
Island
Dominion.
The interest of Canada in the historic Island
which lies at its front gate has always been consider-
able ; in recent years its pulp and paper manu f actures,
its great fishing industry, its increasing trade, i ts large
railway interests represented by the well-known
Reid- Newfoundland Company of St. John's, its great
coal resources and its Paradise for sportsmen, had
attracted a growing attention. Its trade of late
years had expanded with Imports of $15,193,726 in 1914 (year of
June 30) and Exports of $15,134,543 to $26,392,946 of Imports and
$30,153,677 of Exports in 1918 and to $40,535,388 and $34,865,438
respective y in 1920. The Pulp and paper industry, chiefly in the
hands of Lord Northcliffe's Company at Grand Falls — the Anglo-
Newfoundland Development Co. — had grown from a total value of
$2,168,164 in 1913-14 to $2,413,601 in 1917-18 and $5,059,936 in
1919-20. Fishery values had fallen, however, although the value
of its herring catch was, in 1920, still three times that of 1913-14
and totalled $1,235,864.
Like Canada, Newfoundland shared in the shock of the U.S.
Tariff adjustments; its unfavourable trade balance was already
$4,000,000 but, on the other hand, its larger volume of trade was
with Canada and Britain ; in 1920 (calendar year) its Exports totalled
NEWFOUNDLAND AND ITS CANADIAN RELATIONS IN 1921 189
$34,856,000 or a decrease of $2,000,000 and its Imports were $33,-
297,000 or an increase of over $3,000,000. This situation enhanced
the importance of its Canadian relations. The United States was
chiefly concerned with the export of manufactured foodstuffs, items
of clothing and personal furnishings, leathers and leather goods,
marine equipment and ships chandlery, musical instruments, tools,
vehicles and certain building materials to the Island; Canada sup-
plied the largest proportion of Newfoundland's needs in dairy and
packing-house products, vegetables, fresh meats, coal, lumber, steel
and agricultural implements. The new opportunities for Canada in
this market during 1921 were chiefly in condensed milk, groceries,
pickled meats, granulated sugar, corn meal, tobacco and cigarettes,
cotton fabrics, boots and shoes and India rubber footwear, hats and
caps, millinery, paints and varnishes and hardware connected with
the fishing trade. There was, also, a considerable demand for
motor engines for fishing boats, automobiles, sewing machines,
electrical fixtures and specialties, tools and building materials.
The Imports in the year of June 30, 1921 were $28,909,727 and the
Exports $22,441,261.
Canadian capital and enterprise could do much to develop the
admitted resources of the Island; its hardy and thrifty race of
workers should prove a useful help in the organization of new in-
dustries; its difficulties, in this year, with the American tariff
promised to make financial relations with both Britain and Canada
closer. Speaking to Canada, the London journal, on Jan. 1st,
H. D. Reid, President of the Reid-Newfoundland Co., described
certain conditions: "A new tendency has arisen in the Fisheries of
Newfoundland, namely, freezing fish and smoking fish — not only
codfish but salmon, halibut, turbot, capelin, and herring. Besides
this, methods of fishing are changing. Instead of line-fishing, the
more intensive trawler fishing is being tried out with success.
Every year 75 steam trawlers from France go to the Newfoundland
banks. Why do not British trawlers go also?" In Newfoundland
there existed at this time on Bell Island, the second largest iron mine
in the British Empire, and its output had averaged during the past
three years no less than 700,000 tons. The Bell Island hematite
deposits extended under the sea and the tonnage of ore in this area
was estimated at an enormous iotal; there were other localities
which required only the serious consideration of capitalists and
mining experts to develop them into extremely valuable producing
areas. Manufacturers of pulp and paper from the United States
were in 1921 establishing mills in Newfoundland. In the Canadian
Gazette, London, a little later, Mr. Reid declared that:
Newfoundland is one of the greatest undiscovered and undeveloped
countries, though in the midst of civilization, in the world. It lies in a
most advantageous position between the United States and Great Britain.
It possesses vast potential wealth in forests, water-powers and minerals.
It has at Wabana one of the greatest iron mines in the world; there are
lying dormant the greatest copper mines in the North American con-
tinent— mines that are on the seaboard and are nearer to British smelters
than any other sources of supply; all kinds of other minerals are to be
190 THE CANADIAN ANNUAL REVIEW
found in the Island — mica, manganese, slate, marble, molybdenum and
silver, x x x Newfoundland presents unrivalled facilities for the pro-
secution of pulp and paper manufacture. There are immense areas cov-
ered with spruce and fir, easily accessible, well watered, and near the sea-
board. Many water-powers ranging from 1,000 to 40,000 h.p. are awaiting
development. The supply of spruce is unending. There is no need to re-
afforest after cutting, for the forests reproduce themselves every 40
years. I cannot imagine a country with greater attractions for sports-
men than Newfoundland possesses. All the rivers — and there are thous-
ands of them — abound in salmon and trout, and are free. The salmon
are very like Scotch salmon. Why should English sportsmen go to Nor-
way to fish when Newfoundland can offer the best of sport?
As the year passed on, considerable unemployment developed
and a strike at the Anglo-Newfoundland Pulp mills caused trouble ;
several new Pulp mills were started and the Fishing season was well
up to the average with, in October, market conditions improving ;
the Newfoundland Fish Products, Ltd., sent over to Europe one
million pounds' worth of frozen fresh salmon, and with improved
means of collection were increasing their trade and getting a good
market. Difficulties developed in the Fishing industry and as to
Government's control over the marketing of codfish and, before the
U.S. Tariff complications came to a head, Hon. W. F. Coaker,
Minister of Marine and Fisheries, told a London journal (Jan. 15)
that Newfoundland might "have to seek a safe market in the
United States and the countries under American influence, such as
Cuba and Porto Rico, and, in return, give the United States a
trade preference on imports because Newfoundland had received
little aid from Britain in the disposal of her fishery products or the
development of her resources in lumber and minerals." The
timber-cutting industry almost collapsed in the first part of the
year as a result of low prices and the seal industry closed its season
on Apr. 30, 1921, with a catch of 101,452 pelts for the nine steamers
— not enough to make the business profitable because of low prices
though the catch was greater in bulk than in the previous two years.
Considerable depression followed owing to the general fall in
prices, over-purchase of imports at preceding high prices, reduction
in returns on codfish and shrinkage in the book debts of merchants.
But it was not as bad as pictured and Sir Richard Squires, Prime
Minister, wrote to the New York Tribune (May 20) stating that
there was no financial embarrassment, that the newspaper articles
of Sir Patrick McGrath in Canada and the United States were too
pessimistic — the latter being Opposition leader in the Legislative
Council; that "Newfoundland's trade and labour conditions have
certainly been the subject of depression, as in all parts of the world,
but the depression has not been as great, nor is there any sign of its
becoming as acute, as it has been both in the United States and
Canada."
The Legislature was opened on Mch. 30 and the Budget present-
ed on May 25 by Sir Richard Squires, Prime Minister, showed the
revenue to June 30, following, as $8,244,104 and the estimated
expenditures as $11,171,821. It was pointed out that the mer-
chants had imported in the previous fiscal year $7,000,000 worth of
NEWFOUNDLAND AND ITS CANADIAN RELATIONS IN 1921 191
goods over and above current requirements and this had to come off
the imports of the fiscal year 1920-21 and thus lessen the revenue as
the reduction in prices, also, was doing; Newfoundland, besides, had
interest burdens on a war expenditure of $16,000,000 and the total
funded Debt was $49,000,000. Sir Michael Cashin, Opposition
leader, was vigorous in his criticism and, in dealing with the Labra-
dor boundary dispute with Canada which, it was announced, had
been referred under joint agreement to the Imperial Privy Council,
claimed that it might become, financially, a question of handing that
region over to England or Canada. The Railway situation also
became a difficult one during the year and the Premier stated in the
Legislature (May 25) that when the Railway Commission's term
of office expired the relations between the Reid-Newfoundland
Railway and the Government would be a serious question.
During the Session a measure was passed providing for the
operation of the Railway system for one year ending June 1st, 1922,
by the Reid-Newfoundland Co. The Government guaranteed a
loss in operation up to $1,500,000 under the provisions of the Bill,
but the Company would meet losses above that figure ; it was passed
by a vote of 18 to 14. Sir George Bury, of Canadian Railway
experience, had been appointed Commissioner to investigate con-
ditions and he had reported that since 1904 operating costs had
exceeded earnings by $5,750,000; that the Joint Commission of the
Reid interests and the Government, appointed in 1920, and since in
control, had not improved matters. The Legislature was pro-
rogued on Aug. 12 after the longest Session in 70 years. Sir P. T.
McGrath shared the pessimism of Sir Michael Cashin at this time
and, in a despatch to the Halifax Chronicle on July 2 1 stated that the
country "might be compelled to seek terms of Confederation with
Canada." Sir Richard Squires was in Washington early in October
and registered Newfoundland's protest against the Fisheries' duties
of the Fordney tariff; Hon. W. R. Warren, Minister of Justice, was
in London during December presenting the case of Newfoundland,
in regard to the Labrador boundary, before the Privy Council;
Sir P. T. McGrath spent three months at this time searching the
archives of Canada and the United States for evidence to be used in
connection with this dispute regarding the boundary between
Labrador and the Province of Quebec.
Trade conditions bettered at the end of the year and on Oct.
3rd, Capt. Edwards, British Trade Commissioner, stated to the
Montreal press that the situation was improving rapidly, that there
never had been a serious depression in Newfoundland and that
what existed was greatly exaggerated in reports ; that the re-adjust-
ment taking place in the ocean service from Newfoundland, as
recently inaugurated by Steamship companies, would be a big factor
in bringing about a general betterment ; that Portugal had recently
placed an embargo on Norwegian fish with Newfoundland making a
determined bid for the market ; that some progress was being made
in the development of mineral resources, especially copper mines,
with indications of very satisfactory results. During his English
192 THE CANADIAN ANNUAL REVIEW
visit the Minister of Justice (Mr. Warren) stated that a British
corporation was "trying out" copper ore at Green Bay, with a view
to development while the Anglo-Persian Oil Co. had a staff of
geologists prospecting under arrangements with the Government
Sir Edgar Bowring, Newfoundland's High Commissioner in
London, told the Canadian Gazette on Nov. 3rd that the value of the
Dominion's crops and live-stock in 1921 actually exceeded that of her
Fisheries. For some years Agriculture had been making slow but
sure progress and the movement had hardly been noticed. The
crops had been good and the Minister of Agriculture reported to him
that there were in Newfoundland 21,000 horses, 80,000 sheep, 28,000
head of cattle, 14,000 goats and 13,500 pigs; a remarkably fine
showing for a small population not hitherto credited with being
agricultural The estimated value of agricultural products in 1920
was $19,513,604. He added that: "Newfoundland is financially
sound and able to meet her obligations satisfactorily. There is a
certain amount of unemployment in the Island, but that has been
relieved by schemes of work started by the Government, and as the
autumn approaches there is less and less unemployment until at the
present moment, I think everyone is fully employed. The Fisheries
have been excellent so far as quantity is concerned — well above the
average." At a Newfoundland Club dinner, in London on Nov.
24, Sir Edgar pointed out again that Fishing no longer was the
staple industry and that :
We get out of the land twice as much as we get out of the sea. Our potato
crop, amounting to 600,000 barrels, is more valuable than our Labrador fisheries;
our hay crop, combined with roots, such as turnips, is more valuable than our
shore fisheries, while the live-stock trade — cattle, horses, sheep, goats, etc. — is
more valuable than the Bank fishery; so that Newfoundland, which has always
been considered entirely a fishing country, turns out to be an agricultural country.
Not that we have by any means developed our fisheries to the extent that we
ought. Far from it. There is an undeveloped field there that might claim
profitable investment for millions of capital for many years to come. We have
only touched the fringe of the fresh fish business, and Mr. Reid will bear me out
when I say that his cold storage plant, so far as he has gone, has been successful,
and that his huge establishment, exporting many thousands of tons of fish a year
is doing very well.
In December H. D. Reid announced, at St. John's, extensive
plans for the development of the natural resources of Newfoundland
with the immediate employment of 2,000 men and stated that, while
in London, he had negotiated a contract with the Armstrong,
Whitworth Co. Ltd., to develop the resources of the Humber Valley;
by that project paper mills would be established twice the size of
the Harmsworth plant at Grand Falls with a capacity of 1,000 tons
daily; the contract guaranteed the expenditure of $7,000,000 within
two years with the establishment of aluminium works and other
industries and extensive water-power development. It may be
added that, in 1920, the Newfoundland Legislature had turned
down Woman Suffrage and that in 1921 — the fourth year of opera-
tion— there were some Prohibition troubles in the Island-Dominion
though nothing so marked as in Canada and the United States.
CANADA AND THE BRITISH WEST INDIES; CONFERENCE OF 1920 193
The Dominion was in close touch with the West
Canada and Indies in 1921 and this was based upon certain
the British developments of 1920 which could not, for special
The^Con-168 reasons, be dealt with in The Canadian Annual Review
ference of for that year. Canada was considerably and prac-
1920. tically interested in these regions. Its export in 1916,
of products which the West Indies imported to a total
of $35,883,000, was only $7,059,370; on the other hand, out of
$117,315,500 worth of imports such as the West Indies produced,
Canada only took from the Islands $22,525,700*. The population
of the 1 8 islands and British colonies, loosely called the West Indies,
totalled 2,225,000 at this time, and they had, as a rule, products
which Canada needed and demands which Canada could supply.
The Bank of Montreal, through its close relations with the Colonial
Bank, as well as the Royal Bank through a number of branches,
were interested in the Islands; the Royal Mail Steam Packet Co. ran
Canadian ships, under Government subsidy, from Halifax; the new
Canadian Merchant Marine was, in these years, actively seeking
business there. In 1912 Canada had entered into a ten-year
reciprocal Preferential Trade Agreement (which became operative
in 1913) with the main group of the British Islands and with British
Guiana, and had granted preference, without reciprocity, to Jamaica,
the Bahamas and British Honduras, upon an average basis of 20
per cent. ; since this preference had been established the total trade
of Canada with the West Indies had increased from $14,100,000 in
1913 to $33,400,000 in 1920.
The Canadian and West Indies Conference of 1920.
During this year various incidents led up to the Conference at
Ottawa including a Congress of Associated West Indian Chambers
of Commerce at Barbadoes, the condition of the existing Cable
service between Great Britain, Canada and the West Indies, the
continued high price in Canada for West India products via New
York, the ever-growing influence of American trade in Jamaica and
some of the other Islands, the development of the Canadian Mer-
chant Marine which provided much-needed transportation facilities,
the grant of an Imperial preference to the Islands and the state of
exchange with New York. The Canadian delegates to the Con-
ference, as finally fixed, were Sir George Foster, Minister of Trade and
Commerce; Sir Henry Drayton, Minister of Finance; Hon. Martin
Burrell, Minister of Commerce, and Hon. C. C. Ballantyne, Minister
of Marine; Antigua sent four representatives and Bermuda the
Hon. W. E. Jackson, C.M.G., M.L.C., Colonial Secretary, and Hon.
S. S. Spurling, C.B.E.; Bahamas the Hon. Harcourt Malcolm, O.B.E.,
Speaker of the Assembly, and Jamaica Hon. E. St. J. Branch, K.C.,
Attorney- General; Demerara, Grenada, Barbadoes, Leeward Islands
each had one delegate. Great Britain was represented by Lieut. -
Col. L. C. M. S. Amery, M.P., Under Secretary for the Colonies, and
Capt. E. J. Edwards, Trade Commissioner to Canada. Many of
the delegates had expert advisers with them. It was pointed out at
*NOTE. — Figures extracted from a valuable little pamphlet issued by the Bank of Montreal.
194
THE CANADIAN ANNUAL REVIEW
this time* that the trade of the British West Indies — including
Bermuda, British Guiana and British Honduras was as follows :
Canadian' Imports From
Canadian Exports To
Fiscal
Fiscal
1 1 Months
Fiscal
Fiscal
1 1 Months
Colony
Year
Year
Ending
Year
Year
Ending
1918
1920
Feb., 1920
1918
1920
Feb., 1921
Bermuda
British Guiana..
$84,940
.. 6,716,647
$55,604
7,412,931
$74,598
7,573,293
$823,407
1,978,323
$1,249,020
3,109,381
$1,348,395
3,240,054
British Hondura
s 352,028
302,043
78,605
13,468
29,350
33 232
Barbados
7,532,265
8,184,382
2,131,171
2,217,425
Jamaica
'.'. 10,550,550
2,631,833
4,340,059
6,838,563
3,280,559
3,163,857
Trinidad and
Tobago
954,469
556,366
3,746,644
4,640,174
Other British
*
"i^est Indies....
974,577
1,435,413
1,710,888
1,944,380
$17,704,165 !^19,863,722 $22,242,716 $9,653,761 $15,257,013 $16,587,517
The opening proceedings on May 31 included addresses from
H. E. the Duke of Devonshire, Sir. R. L. Borden, Prime Minister,
and Lieut.-Colonel Amery. In the Commons on this date Mr.
Lemieux asked as to the objects of Conference and Sir George
Foster replied that three subjects were to be discussed: (1) Trade
relations of the two sections of the Empire as regarded preference
and objects of preference; (2 transport facilities or better communi-
cations both as to passengers and freight; (3) improvement of
cable facilities. At the Conference, meanwhile, Committees were
appointed dealing with wireless and cable communications and
transport and shipping and they held their first sessions; the main
body discussed tariffs and preferences and on June 8, after some
days of this discussion, the Dominion Government gave a Dinner
to the Delegates which marked a sort of half-way point in the pro-
ceedings; speeches were made by Sir George Foster, Sir Robert
Borden, Hon. W. E. Jackson, Hon. Mackenzie King and Colonel
Amery.
In Toronto on June 11 the Delegates were present at a Civic
luncheon in their honour and expressed high hopes of success; the
chief speakers were Hon. S. S. Spurling, Hon. Herbert Ferguson and
Charles Marriott, President of the Toronto Board of Trade; Ham-
ilton and Niagara Falls were also visited. During this period and
up to June 20 when the Conference closed — with the exceptions
noted — two sessions daily were held and an arrangement touching
the three subjects under consideration was finally concluded and
signed by all the representatives of the Governments concerned.
This Agreement was subject to the consideration and approval of
the different Legislatures, and the approval of the Secretary of State
for the Colonies. It was officially announced that the Agreement:
(1) Carried the assent of all the delegates present at the Conference;
(2) was framed upon an increase of the mutual preference then granted
and an extension of the list of products upon which Preference had
hitherto been given; (3) included in the mutual Preference all the
British Colonies in the West Indies; (4) contemplated mutual co-
operation of the signatories towards the provision and maintenance
of improved steamship transport and included a Memorandum
*NOTE. — Canadian Bank of Commerce Monthly Letter, June, 1921.
CANADA AND THE BRITISH WEST INDIES; CONFERENCE OF 1920 195
urgently pressing for improved cable communications. On Aug.
2nd the details were made public as to the formal Agreement between
Canada and the British West Indies — including Bahamas, Barbad-
does, Bermuda, Jamaica, Trinidad, Leeward and Windward
Islands, British Guiana and British Honduras — for a period of 10
years but terminable on 12 months' notice. Under its terms:
1. Canada granted a Preference on all goods, the produce or manufacture of
any of the above Colonies imported into Canada, then subject to duty or which
might be subject to duty at any future time.
2. Excepting the special preference shown in Paragraph III. and excepting
also tobacco, cigars, cigarettes and alcoholic liquors, Canada granted a Preference
of 50 per cent, on goods imported from any of the above Colonies as compared
with the duty imposed on similar goods imported from foreign countries.
3. Canada granted the Preference indicated with respect to the following
articles the produce or manufacture of any of the above Colonies :
Sugar from 46-08 cents to 96 cents per 100 Ibs.
Cocoa beans, not roasted, crushed or ground, $1.50 per 100 Ibs.
Lime juice, raw and concentrated, not refined, 10 cents per gallon.
Limes, fresh, Free, as against General Tariff of 15%.
Arrowroot, 1 cent per Ib.
Cocoanuts, imported direct to a Canadian port, Free as against General
Tariff of 75 cents per 100.
Cocoanuts, not otherwise provided for, 50 cents per 100.
Grapefruit, 50 cents per 100 Ibs.
Rum, 60 cents per gallon of the strength of proof.
Onions, Free, as against General Tariff of 30%.
4. The above Colonies agreed to grant a preference on all goods the produce
or manufacture of Canada.
5. Subject to the special provisions of Paragraph VI. the duties on Canadian
goods imported from Canada (other than tobacco, cigars or cigarettes) should not
at any time be more than the following percentage of the duties on similar goods
imported from a foreign country:
(a) 50% in the case of Barbadoes, British Guiana and Trinidad (Preference
therefore, 50%.)
(b) 66|% in the case of British Honduras, the Leeward Islands and Wind-
ward Islands (Preference 33&%).
(c) 75% in the case of Bermuda and Jamaica (Preference 25%.)
(d) 90% in the ease of Bahamas (Preference 10%).
6. The above Colonies granted the Preference indicated with respect to the
following articles the produce or manufacture of Canada:
Flour, one shilling per barrel, or bag of 196 Ibs.
Spirits, (Brandy, Gin, Rum, Whiskey) 2s 6d. per liquid gallon.
Wine, Beer and Ale, Duty not to exceed 4/5 full rate.
As to the Steamship services Canada undertook to use its best
endeavours to arrange for a mail, passenger and freight steamship
service of 5,000 to 6,000 tons to come into effect as soon as possible,
and in any case within three years, between Canada, Bermuda, the
Leeward Islands, the Windward Islands, Barbadoes, Trinidad and
British Guiana. The representatives of the Colonies concerned
undertook to recommend that their Governments should contribute
toward such subsidized steamship service, when established, a total
of $27,000 annually. Pending the establishment of such service,
the Government of Canada would try to maintain a fortnightly ser-
vice on the existing lines, and to supplement it with such additional
freight or passenger and freight vessels as the trade might require.
196
THE CANADIAN ANNUAL REVIEW
The Agreement concluded with a declaration that the representa-
tives of Canada and the Colonies would recommend for the consid-
eration of the respective Governments that British-owned and
British-controlled cables should be laid as soon as possible, without
waiting for the termination of the proposed agreement with the
West Indian and Panama Telegraph Co.
Canada and the West Indies in 1921. During the later
part of 1920 and early in this year the various Colonies of the West
India group came finally into the Canadian Agreement — with the
exception of Bermuda where the Legislature rejected the Agreement
because of its own close trade relations with the United States ; the
House of Commons, Ottawa, approved it on Apr. 19, the Senate a
little later, and the Agreement went into effect June 18, 1921. A
movement also developed and had official support in England for a
closer union amongst the Islands themselves; Major E. F. L. Wood,
Under-Secretary for the Colonies, made a tour of the West Indies
during this period. On Mch. 21, in the British Commons, the
adoption was approved of a Supplementary agreement to that of
1914 with the West India and Panama Telegraph Co. It provided
for a waiver of deductions from the Imperial subsidy under terms of
which a large reduction took place in cable rates to the West Indies
with payment to the Company by the Imperial and Canadian
Governments of £8,000 each per annum and a local subsidy of
£10,300 contributed by the various Colonies — making up a total of
£26,300 for a period of 10 years expiring on Sept. 30, 1924. Condi-
tions, it was explained, had greatly changed-and the Company could
not go on without help of this kind.
At the Imperial Conference Mr. Winston Churchill, Secretary
for the Colonies, pointed out that Canada was really not complete,
commercially or geographically, unless she was associated with the
tropical Islands of the West ludies; that the more these two portions
of the British Empire were interested, the one in the other, the
greater would be the benefits to both. At Kingston, Jamaica, on
Aug. 3 a Resolution was presented in the Legislature urging con-
federation between the British West Indies and Canada, but was
voted down. On July 15 the West Indian Federation Committee,
through its Secretary, wrote the Colonial Secretary and stated that
the proposed union of the British West Indies, including British
Guiana and Honduras, was as much an Imperial as a local question,
and suggested the advisability of delegates from the various Colonies
meeting in London to discuss the question.
Following the making of the Trade Agreement and from the
first part of 1921 the Canadian Government Merchantile Marine
maintained a tri-weekly service between Canada, the Bahamas,
Jamaica, and Belize, British Honduras. In summer the Canadian
port was Montreal; in winter Halifax. The Government also paid
to the Royal Mail Steam Packet Co. a subsidy of $340,666 for a
bi-weekly service between Canada and British Guiana, the vessels
calling at a number of islands in the Caribbean Sea and the contract,
which was to end on Oct. 31, was extended during the year until
CANADA AND ITS CABLE NEWS; IMPERIAL PRESS CONFERENCE 197
Mch. 31, 1922. In December the R.M.S.P. Company announced
a reduction in their rates for the West Indian route in order to
stimulate traffic on the northern lines during the winter season.
During July the Canadian Naval Squadron visited Jamaica and
other West Indian Islands and received a cordial welcome.
Canada and
Cable News
Conditions:
The Imperial
Press Con-
ference of
1920.
This problem was an important one in 1920 and
1921; more discussed in the former year than the
latter — especially by and through the Imperial Press
Conference, a record of whose proceedings has been
held over from the 1920 volume of The Canadian.
Annual Review. An effort was made by Hon. N W.
Rowell, Minister of External Affairs in this latter
year, to obtain Parliamentary and press approval
for an Imperial Cable News Service to which the Dominion Govern-
ment would contribute $20,000, the British Government $20,000
and the daily newspapers of Canada $15,000 per annum. The
Dominion grant was included in the Estimates of the Department.
The Minister shared with many others the knowledge that
Canadian world news, with slight exceptions, came from American
correspondents in London and other world capitals to New York
and was distributed to the Continent by the American Associated
Press; that while the distribution from N.Y. had, in recent years,
been through the hands of the Canadian Associated Press, Ltd., the
material used, despite revisions or eliminations, remained American
in origin and, unavoidably, in point of view — especially as to Great
Britain and British Empire conditions and politics. There were
some very slight special Canadian despatches under the auspices
of the Canadian Associated Press — taken over in 1918 by the Can-
adian Press Ltd. — and as a result of a small subsidy granted for a
time by the Dominion Government but it was infimtesmal in the
mass of other material. A part of the press objected to Mr.
RoweH's proposal on the ground (1) that it interfered with the
liberty of the press and (2) that it was British propaganda. No
reference was made to the continuous though subtle American
propaganda of the existing system. The chief opposition came
from the Toronto Telegram and to Irving E. Robertson of that
journal, and President of the Canadian Associated Press, Mr.
Rowell wrote on Apr. 12, 1920:
(1) We were advised that the Canadian Press, Limited, took over the Canadian
Associated Press some 12 or 18 months ago, and that the affairs of the C.A.P.
are really now under the control of the Canadian Press, Limited. The Canadian
Press, Limited, intimated to the Government that if the new Subsidy was granted
to cover Imperial News Service, the subsidy to the C.A.P. might be discontinued.
We are not able to see where there is any difference in principle between a sub-
sidy of $8,000 to the Canadian Associated Press and a subsidy of $20,000 to the
Canadian Press, Limited. There is, however, as we understand it, a very real
difference in the two. The subsidy to the C.A.P. was originally for the benefit
of a limited number of papers only; whereas the subsidy to the Canadian Press,
Limited, will cover all the Canadian papers members of this Association.
(2) The Service rendered originally by the C.A.P. was of a much more limited
character than will be the new proposed Service which it is contemplated will be
198 THE CANADIAN ANNUAL REVIEW
on a very much more extensive scale, and will provide the Canadian Press with
news from all portions of the Empire; (3) You are quite in error in assuming that
the Service has any political character in the sense suggested, or any Govern-
mental interference, or control. The Canadian Press, Limited, will be just as
free as the C.A.P. has been in the past; in fact, in this respect we understand the
two Services stand on the same basis.
A voluminous ensuing correspondence was published in the
Telegram of May 4; Mr. Robertson opposing all subsidies to the
press, declaring that the newspapers should stand alone, denouncing
the Imperial Press Conferences and "would-be Beaverbrooks" and
claiming (Apr. 16) that such a "sinister" condition as was proposed
would soon replace news by propaganda. Mr. Rowell pointed out
(Apr. 24) that despite his opposition to the proposed subsidy, Mr.
Robertson was still urging $8,000 a year to the C.A.P. E. Norman
Smith of the Ottawa Journal, President of the Canadian Press,
Ltd., wrote at length to Mr. Rowell (Apr. 21) as to the relations of
the C.A.P. and his organization: "The Canadian Associated Press
was established prior to the existence of the larger organization,
known as Canadian Press, Limited. Upon the development of the
latter into a national organization, the separate existence of the
C.A.P. became unnecessary, and the majority of its shareholders
were and are willing to merge the two institutions. They are
practically merged now, all the shareholders of the C.A.P., being
shareholders of C.P., and only a few technical details stand in the
way of a complete amalgamation."
Meanwhile, the Imperial Government had done its share and
in the British Commons on Mch. 8 Colonel Amery presented and
carried estimates for £13,000 which might be required in 1919-20
to continue in a modified form arrangements made during the War
for despatch of Press messages through Renter's Agency to the
Overseas Dominions and Colonies. Contributions to the cost of
the Service had, he said, been promised by the Dominions and
Colonies concerned. The actual service to Canada had ceased in
October last but the Canadian Government had been discussing the
matter with the Canadian Press, Limited. On May 19 representa-
tives from 40 daily newspapers, published in every part of the
Dominion, from Sydney to Victoria, attended a meeting in Toronto
of the Canadian Press, Limited, the co-operative and mutual
organization of Canada for the supply of domestic and foreign news
services. The proposals for an improved Cable News service, to be
entirely within the control of the Canadian Press, were discussed and
Mr. Robertson's views dominated the situation.
It was officially announced that the Canadian newspapers, as a
body, although grateful to the British Government for its offer of
financial aid, decided that they could not, in self-respect, burden the
British taxpayers; they were prepared, from their own resources,
and by continuation of aid received from the Ottawa Government,
to develop a service of inter- Imperial cable news. Following this,
the proposed grant of $20,000 by the Canadian Government fell
through ; on June 30 the House was asked to continue a local vote
of $50,000 to the Canadian Press, Limited, as aid in the transmission
CANADA AND ITS CABLE NEWS; IMPERIAL PRESS CONFERENCE 199
of telegraphic news from East to West over the large vacant spaces
existing between certain sections of the country; the vote of $8,000
to "Press Ltd/', or the old C.A.P. service, was renewed. The mat-
ter came up for consideration at the Imperial Press Conference and
at the 9th Congress of Chambers of Commerce. The following
comment (Dec. 25) was made by Canada, the London weekly journal
of Canadian interests:
It is unfortunate that owing to the opposition of certain of the larger and more
wealthy Canadian newspapers the suggested increase in the Government subsidy
of the newspaper cable service from the Mother Country to Canada will not be
granted. The Canadian daily Press, with very few exceptions, cannot possibly
be said to enjoy, at all, an adequate cable service from the capital of the Empire.
In past years it has been an acknowledged fact that British news to Canada was
far too much coloured by American influence.
The Imperial Press Conference of 1920. Lord Atholstan,
proprietor of the Montreal Star, was Chairman of the Canadian
Branch of the Empire Press Union, under whose auspices these
Conferences were held, and the active chief of the promoters in
Canada. He was in England during April, was entertained at
luncheons by The Times and the British Newspapers Proprietors'
Association ; incidentally, he took his seat in the House of Lords for
the first time. His visit helped to arouse British interest in the
matter while, in Canada, the Committee having local arrangements
in hand was constituted as follows: Lord Atholstan, Chairman;
P. D. Ross (The Ottawa Journal), Treasurer; J. E. Atkinson (Tor-
onto Star) ; W. J. Mayrand (Montreal La Presse), and W. J. Taylor
(Woodstock Sentinel- Review), with C. F. Crandall (Montreal Star),
as Secretary. The Dominion and various Provincial Governments
made grants toward expenses and the Canadian newspapers sub-
scribed to a Fund of $50,000. The programme included a tour of
Canada, and those finally in attendance at the Conference represent-
ed many influential journals of the United Kingdom, Australia,
New Zealand and South Africa, as well as Canada — with about 60
from Great Britain and 40 from the other parts of the Empire.
India, Newfoundland, West Indies, Ceylon, Egypt and other
places were represented. It was the second Conference of this
nature — the first being held at London in 1909* Some of the most
notable of those who arrived in Canada at the end of July were as
follows :
GREAT BRITAIN:
Viscount Burnham President, Empire Press Union
Lord Apsley, D.S.O., M.C Morning Post
Sir Robert Bruce, U..D Herald
H. T. Cadbury Daily News
Sir Emsley Cam News of the World
Harold Harmsworth Western Morning News
Col. Sir Arthur Holbrook, M.P Times
P. J. Hopper Freeman's Journal
Sir Roderick Jones Renter's
C. D. Leng Telegram.
T. B. Maclachlan Scotsman
Sir Frank Newnes The Strand Magazine...
Dr. Ellis T. Powell Financial News
Hugh Spencer Westminster Gazette
Sir Campbell Stuart Times
...London
...London
...Glasgow
...London
. . . London
...Plymouth
...Portsmouth
...Dublin
...London
...Sheffield
...Edinburgh
...London
...London
...London
...London
*NOTE. — See The Canadian Annual Review for 1909, Page 61 and following.
200 THE CANADIAN ANNUAL REVIEW
GREAT BRITAIN — (Continued)
Sir Charles Starmer, Northern Daily Echo, etc London
Sir George Toulmin.. Lancashire Daily Post..
AUSTRALIA:
The Hon. C. E. Davis, M.L.A Mercury.
G. E. Fairfax Morning Herald...
Hon. Theodore Fink Herald.
Hon. J. W. Kirwan Miner
London
Hobart
Sydney
Melbourne
Kalgoorlie
Melbourne
G. Syme Age..
NEW ZEALAND AND SOUTH AFRICA:
H. Horton New Zealand Herald Wellington
E. Abbey Jones Daily Times. Southland
T. W. Leys Star. Auckland
P. Selig Daily Press Christchurch
p' Davies Witness. Natal
C. D. Don Star. Johannesburg
R. S. Ward-Jackson Rand Daily Mail Johannesburg
D. M. Ollemans The Friend Bloemfontein
Others present were Sir Howard D'Egville, Sir Gilbert Parker,
Robert Donald, Sir Harry Brittain, M.P., Miss M. F. Billington of
the Daily Telegraph — the only woman delegate — and Sir Patrick
McGrath of Newfoundland. Lord Burnham was Chairman of the
British Delegation, G. E. Fairfax of the Australian, Ward Jackson
of the South African and T. W. Leys of the New Zealand. The
Victorian arrived at Sydney, N.S., on July 27 with 98 accredited
delegates on board; a large number of messages of welcome from
leading Canadians and representatives of Canadian centres were
received. On the 28th the party arrived at Halifax and were officially
welcomed by the Lieut. -Governor and Provincial Premier with
replies by Lord Burnham and Robert Donald. The latter dealt
with what he termed "the moral lapse of America" in not supporting
the Versailles Treaty and the League of Nations and described the
burden thrown upon Britain.
Grand Pre* and the Land of Evangeline and Truro were visited
and St. John gave a warm reception to the delegates on the 30th;
at Fredericton on the 31st a banquet was held in the old Legislative
Chamber with Sir Campbell Stuart as the chief speaker ; in Quebec
on Aug. 1st Lord Burnham and the Delegation entertained Capt.
Waite and the officers of the Victorian at a dinner ; Grand M£re and
the Laurentide Pulp works were visited en route to Montreal where,
on the 3rd, a special Convocation of McGill University conferred
the Hon. degree of LL.D. upon Lord Burnham, Sir Harry Brittain,
R. S. Ward Jackson and Thomas W. Leys. Here, also, a luncheon
was tendered by the City with Hon. Chas. Marcil speaking for the
administration and Sir H. Brittain for the visitors; here Lord
Atholstan entertained the delegates and 400 guests, all told, at a
brilliant banquet in the Ritz-Carlton — the speakers including Sir
Lomer Gouin, Sir J. S. Willison, Fernand Rinfret, M.P., J. R.
Rathom of the Providence Journal, Lord Burnham; while cables
were read addressed by H.M. the King and Mr. Lloyd George to
Lord Atholstan. The delegates arrived at Ottawa on Aug. 4 and
here the real business of the occasion commenced.
The Conference was opened on the 5th by an address from H. E.
the Duke of Devonshire and speeches from Mr. Premier Meighen
and Hon. Mackenzie King. Upon motion of Lord Atholstan, Lord
Burnham, Chairman of the British Empire Press Union, was elected
CANADA AND ITS CABLE NEWS; IMPERIAL PRESS CONFERENCE 201
Chairman of the Conference ; Lord Atholstan, himself, was appointed
Hon. Chairman. The first subject of discussion was that of cables
and cable rates and wireless services; as to the latter a Resolution
was passed in favour of "providing the British Empire and the
world with advantages of wireless, telegraphic and telephonic com-
munications"; in the evening a Government banquet was given
with the Cover nor- General presiding. Mr. Meighen declared that :
"The distribution of news is now the greatest trust in the whole
body democratic. The opportunities for good are infinite, the
possibilities of mischief are just as vast. In my way of looking at it
there is only one motto for a good newspaperman : 'The truth shall
make you free'." Hon. P. E. Blondin, Postmaster-General, on the
6th made a strong plea for the strengthening of mutual under-
standing between the nations of the Empire; J. W. Dafoe of the
Winnipeg Free Press followed in an appeal for a common ideal
amongst British Dominions and co-operation with the United
States — "We are a combination of nations by consent." Sir
George Toulmin wanted Imperial partnership, Hon. J. W. Kir wan
declared that equality of status involved similarity of obligation.
Resolutions regarding Cables, Wireless and other Communications
and Imperial Cable News Service were approved, as follows :
(a) This Confeience is strongly of opinion that it has become necessary to
secure forthwith facilities for the better, quicker, and cheaper conveyancr*bf News
throughout the Empire, and calls upon the Empire Press Union to take immediate
steps to attain this end.
(b) This Confeience stiongly recommends the Governments of Great Britain
and Ireland, of the Dominions, and of India to encourage the development of
cable, wireless, and other facilities for the exchange of news and opinion within the
Empire, and to assist in securing reduced rates for such intercommunication ; any
such assistance to appear specifically in the estimates of public expenditure, and to
be so directed as not to affect the quality of the news service supplied or the free-
dom of the newspapers so served.
(c) This Conference is of opinion that the full utility of cable and wireless
communications, as a factor in educating public opinion and in maintaining a good
understanding between all peoples of the Empire, will not be attained until rates
a~e reduced to a basic charge of one penny per word for Press messages throughout
the whole of the British Empire.
(d) This Conference is strongly of opinion that steps should at once be taken
to provide the British Empire and the world with the advantages of wireless tele-
graphic and telephonic communications, and it urgently requests the Govern-
ments of the Empire to secure by public or by full facilities for private enterprise,
at an early date, adequate wireless services throughout the Empire.
The vital question of the preparation and despatch of reliable
news from London — as the collecting and distributing point of
world news to this Continent — was discussed but no decision arrived
at. One side dealt, very guardedly as a rule, with the Americanized
nature of all press despatches from London — prepared by Americans
and for Americans; the others feared British propaganda if placed
under control of a Canadian-British news agency. R. E. Kingsford,
K.C., of Toronto, on behalf of a number of organizations, presented a
protest against the enormous circulation of United States magazines
in Canada, reviewed the disadvantage of having British magazines
marketed here in United States editions and urged the need of a
British News Service. As to the latter point the Memorial sug-
202 THE CANADIAN ANNUAL REVIEW
gested that the American Associated Press despatches having been
prepared for United States consumption, were not suitable for
Canadian readers; the attitude and policy of Great Britain was
very frequently garbled in the News services of the United States.
Partly in this connection and on motion of P. D. Ross, the Con-
ference declared 1hat "Postal rates within the Empire for newspapers
and periodicals should not exceed the lowest rates in force between
any foreign country and any part of the Empire." Another Resolu-
tion was approved expressing opposition to any news carrier being
concerned, directly or indirectly, with the compilation or distribution
of news.
On Aug. 7, following a discussion of Newsprint and paper
troubles and a statement from A. L. Dawe of the Canadian Pulp
and Paper Association, the Conference declared that "the question
of paper supplies being of vital importance to members of the
Empire Press Union, steps should be taken to insure adequate sup-
plies throughout the Empire." Other Resolutions passed were
(1) supporting cheaper postal rates for letters throughout the
Empire; (2) asking the Empire Press Union to appoint a Committee
to confer "with all Universities within the Empire which provide
courses of journalism, in order to frame a scheme of travel scholar-
ships within the Empire for young journalists of proved capacity";
(3) urgitig the "advisability of bringing the commercial laws of the
various Dominions as much as possible into line" ; (4) approving the
"harmonizing of curricula in the Universities of the Empire as far as
possible, and consistently with exigencies and requirements of
each;" (5) urging the need for standardizing the Naturalization
Laws of the Empire ; (6) expressing congratulations to the Govern-
ments concerned upon the Canada- West Indies commercial Treaty ;
(7) declaring that whatever assistance be given by the Government
in the interests of the more extensive dissemination of Imperial
news the Press and all news services "be and remain independent of
Government or official control"; (8) urging "the interchange and
publication of a larger volume of Empire news, apart from political
propaganda, than at present pertains." An address was given by
Sir George Foster, and after formal motions of thanks a Resolution
was passed, enlarging the membership of the Empire Press Union
to admit weekly and trade journals and to hold a Conference every
4 years; the Conference then concluded its labours and the final
Ottawa function was a garden-party at Government House.
The gathering had been a success in bringing together men of
many minds from many countries; it had skated over the most
vital of Imperial problems and that most important of all Empire
press matters — Cable news; it showed, however, a general desire to
conciliate, to agree, to harmonize Imperial difficulties and seek union
rather than disunion. There were some conspicuous speakers.
Lord Burnham, of course, was a favourite everywhere, J. W. Dafoe
of Winnipeg, Fernand Rinfret of Montreal, John Nelson of Van-
couver, Sir Campbell Stuart, Ward Jackson of Cape Town, Sir
Robert Bruce of Glasgow, Robert Donald and Dr. Ellis T. Powell
CANADA AND ITS CABLE NEWS; IMPERIAL PRESS CONFERENCE 203
were notable. Following the close of the Conference many of the
visiting delegates and many of the Canadians travelled across the
continent as guests of the Government and the C.P.R., the Can-
adian National Railways or the Grand Trunk, and were accorded
the warmest greetings everywhere.
Toronto, Hamilton and Niagara Falls were the first places
visited. At a Civic banquet in Toronto (Aug. 9) Sir Campbell
Stuart declared that "in the background of all our lives a real
Imperial soul is developing to guard and guide this Empire, and it
is destined to be, through all the coming ages, the unseen pilot in its
course." Here, also, Toronto University conferred the Hon. LL.D.
upon Robert Donald, Vice-Chairman of the Empire Press Union,
Geoffrey E. Fairfax of the Sydney Morning Herald, Australia; Sir
Robert Bruce, and the Rt. Hon. Sir Gilbert Parker, Bart.; Miss
Billington of the Telegraph was specially honoured by the Canadian
Women's Press Club and a luncheon was given the Delegates at the
Royal Canadian Yacht Club. They were at Guelph on Aug. 13
with a welcome by Hon. E. C. Drury; then came the run by rail to
Sarnia and thence by the Harmonic across Lake Huron and Lake
Superior to Port Arthur and Fort William ; following receptions here
Winnipeg was reached on the 16th with various functions in honour
of the visitors. Portage la Prairie, Carberry and Brandon — with the
grain fields in fine shape — next received the Delegates and Regina on
the 18th succeeded Moose Jaw as the point of Interest.
In the Saskatchewan capital they were entertained at luncheon
by the Provincial Government; at Gleichen on the 19th they Saw
a "Wild West Stampede" and here Lord Burnham was made a
Blackfoot chief with due ceremony. In Calgary the City gave a
dinner to the visitors and Mrs. J. H. Woods a garden-party; Banff,
in the heart of the mountains, was reached on the 21st after a trip
by motor as the guests of the Southern Alberta Press Association
through 100 miles of foothills and towering peaks; at Lake Winder-
mere, B.C., a reception was tendered on behalf of Southeast Koot-
enay. At Vancouver on Aug. 25 after having covered 5,000 miles
since July 31, Sir Roderick Jones paid high tribute in the press to
the organization of the tour: "I have participated in tours through
Europe and Africa, but have never seen one so well organized. Mr.
C. F. Crandall is, in a large measure, responsible for its success."
The Pacific cities duly welcomed the visitors by the usual enter-
tainments; there was a Civic dinner at Vancouver and visits to
lumber camps and the plant of the Canadian Fishing Co. ; two days
were spent on Vancouver Island with an official reception at Vic-
toria by the Lieut.- Co vernor and a dinner by the Attorney-General,
Hon. j. W. de B. Farris; the famous "Sunken Gardens" of R. P.
Butchart were seen.
After parting with some, who returned by the Pacific to Aus-
tralia or New Zealand, the return trip was made via the National
Railways, Jasper Park and the famous "Playground of the Rockies,"
and Edmonton was reached on Sept. 1st. Here, at a Provincial
Government banquet Lord Burnham advocated the creation of a
204
THE CANADIAN ANNUAL REVIEW
Council sitting in London, on which the Dominions would be
represented by resident Ministers. Wainwright and Prince Albert
were visited and at Saskatoon on the 3rd the University of Saskatch-
ewan was inspected. At Winnipeg there was a Canadian Club
luncheon for the delegates. Lord Burnham and others were in
Toronto again, on Sept. 8, and present at an Exhibition luncheon
where Sir Charles Starmer had a cheering word as to conditions in
England: "Industrially, the situation is not as bad as some would
have you believe. Canada sometimes gets a distorted view of
English affairs, but I think that can be overcome when there is a
direct Cable service from England." At Montreal on Sept. 10 Lord
Burnham told the press that: "We did not come to preach, or to
bring a message/' From Quebec a party of 55 sailed on Sept. 15
by the Empress of Britain C.P.O.S. after a farewell luncheon given
by the visitors to local newspapermen and certain citizens and an
official luncheon by the Quebec Government with eloquent parting
words from Hon. L. A. Taschereau and Hon. Athanase David.
In London on Nov. 2nd Lord Burnham, as President of the
2nd Imperial Press Conference, was entertained at luncheon by the
Empire Press Union. Lord Northcliffe presided over a distinguish-
ed gathering and presentations were made from the British
delegates to Lady Burnham and to F. Crosbie Roles, Hon. Secretary
of that Delegation. On Dec. 16 a Dinner was given to the
returned delegates by the Canadian Association in London with
Lieut. -Col. Grant Morden in the chair and speeches from Sir George
Perley, Sir G. McLaren Brown, Rt. Hon. F. G. Kellaway, M.P.,
F. C. Wade, K.C., and W. C. Noxon. Incidents of the Conference
and Tour included presentation to the Delegates of a Guide Book
to Canada entitled Canada: East and West, prepared by J. Castell
Hopkins, Author of The Canadian Annual Review, at request of
the Canadian Committee; the publication of a handsome volume
by Robert Donald recording the history of the Conference; the
presentation to Lord and Lady .Burnham, by the delegates, of a
magnificent Canadian moose head with 24 points; the personal in-
terest taken in the Tour by J. Murray Gibbon, in charge of the
C.P.R. publicity interests, H. R. Charlton of the G.T.R. and W. L.
Crighton, Canadian National Railways. Following is a list of the
Canadian Delegates.
Lord Atholstan
. E. Atkinson
. R. Burnett
.Ion. Frank Carrel, M.L.C
C. F. Craudall
J. W. Dafoe
F. B. Ellis
M. R. Jennings
W. F. Kerr
Oswald May rand
John Nelson
G. Fred Pearson
P. D. Rodd, LL.D
W. J. Taylor "™
Ma j. -Gen. Sir David Watson
T. H. Woods
. B. Maclean
N. R. Davies
W. S. Douglas
Daily Star Montreal
Daily Star Toronto
The Guardian Charlottetown
Telegraph Quebec
Daily Star Montreal
Free Press Winnipeg
The Globe St. John
The Journal Edmonton
The Leader Regina
La Presse Montreal
The World Vancouver
Morning Chronicale Halifax
The Journal Ottawa
Sentinel- Review Woodstock
The Chronicle Quebec
The Herald Calgary
Maclean's Magazine Toronto
The Mercury Renfrew
Mail and Empire Toronto
CHAMBERS OF COMMERCE OF THE EMPIRE CONGRESS IN 1920 205
J. M. Eastwood
J. M. Imrie
Miss M. MacMurchy
Lieut. -Col. Parkinson
E. Roy Sayles
L. J. Tarte
Senator Smeaton White...
Sir John Willison
.The Times Hamilton
.Daily Newspaper Association Toronto
.Women's Press Association Ottawa
.The Journal Ottawa
.Weekly Newspaper Association Toronto
.La Patrie Montreal
.The Gazette Montreal
.London Times Correspondent Toronto
The Chamb-
er* of Com-
merce Con-
gress, 1920.
The 9th Congress of the Chambers of Com-
merce of the Empire was held at Toronto on Sept.
17-24, 1920. Its consideration here has been car-
ried over from the 1920 volume. The first of these
gatherings had been held at London in 1886, in 1903
the meeting was at Montreal and in 1909 at Sydney, Australia ;
Lord Desborough, K.C.V.O., Chairman of the 1912 Congress —
the last one held owing to the War — was President in 1920 as he,
also, was of the British Imperial Chamber of Commerce. The
latter body was a sort of permanent Bureau in charge of ar-
rangements with 116 organizations affiliated; C. E. Musgrave
was Hon. Secretary. The object of the Congress, which was held
triennially (alternately in London and the Overseas Dominions),
was "to give expression to Imperial commercial opinion in mat-
ters directly or indirectly affecting commercial and industrial
affairs."
H. M. the King was Patron of the Congress and at Toronto
the Duke of Devonshire was Hon. President. In London the
Organizing Committee included Sir G. McLaren Brown, Sir C. A.
Hanson, M.P., and Charles Cambie ; in Toronto Sir J. W. Woods,
K.B.E., was Chairman of Committee ; A. E. Ames, D. L. Carley,
William Douglas and D. O. Wood, Chairmen of Sub-Committees,
and F. G. Morley Secretary. The Delegates in attendance at
Toronto when the Congress was opened on Sept. 17 represented
the chief cities of the United Kingdom ; the six greater cities of
Australia ; the Chambers of Commerce of Bengal, Ceylon, and
Upper India ; the West Indies and the British Chambers in Co-
logne, Paris and Sao Paulo. Representative men in attendance
included Stanley Machin, President of the London Chamber;
A. J. Hobson, LL.D., President of the Association of British
Chambers of Commerce ; Sir Thomas Mackenzie, High Commis-
sioner for New Zealand in London ; Mark Sheldon, Australian
Trade Commissioner to the United States; O. E. Bodington,
Vice-President of the British Chamber in Paris; Sir Alex. Mc-
Robert, India ; R. F. S. Hardie, Ceylon ; J. F. Darling, C.B.S., Lon-
don; Sir Harold E. Boulton, Bart., London; W. F. Cockshutt,
M.P., Brantford; Lieut.-Col. W. N. Ponton, Belleville; Lloyd
Harris, Brantford; Sir Edmund Walker and Sir James Woods,
Toronto.
In speaking at the opening meeting Lionel H. Clarke, Lieut.-
Governor, welcomed the Delegates for the Province and T. L.
Church, Mayor, for the City ; Charles Marriott, President of the
Toronto Board of Trade, was Chairman and declared that "the
business of the Empire should be carried on for the benefit of all
206 THE CANADIAN ANNUAL REVIEW
the people who are its co-operative shareholders"; Sir James
Woods stated that "the main object of the Congress, as I see it
from a Canadian viewpoint, is that every dollar's worth of goods
purchased in Canada should come from some part of the Em-
pire. We want efficient, prompt and cheap cable and wireless
service, and must get our British news direct, instead of filter-
ing through another country." In his reply, Lord Desborough
said: "I think I may say that, stricken though England has
'been, she is not yet decrepit, and you will find she will be able
both materially and financially, to contribute to the rebuilding of
the other portions of the British Empire." The first business
meeting was inaugurated in Convocation Hall of the University
of Toronto, by a thoughtful speech from the President, Sir
Robert Falconer, dealing with the relations of Education, Science
and Commerce. Lord Desborough, in his Presidential address,
reviewed the Congresses of the past and stated the trade of the
Empire, in 1918 as 13,000 millions of dollars and its population,
without the recent German territories, as 450 millions.
Many Resolutions were presented and discussed during fol-
lowing days, the debates were informative and full of useful
data, the speeches were strongly Imperialistic in tone. Stanley
Machin, Mark Sheldon, Lieut.-Col. W. N. Ponton, O. E. Boding-
ton, Sir H. Boulton, H. L. Symonds, W. F. Cockshutt, Sir T. Mac-
kenzie, R. J. Graham (Belleville), Lloyd Harris, A. J. Hobson,
Hon. Frank Carrel, Quebec, J. A. Ayton (Derby), Charles Mar-
riott, J. G. Scott and Joseph Picard, Quebec, F. L. Moorhouse,
Huddersfield, C. H. Catelli, Montreal, A. Barton Kent, London
(England), Leon Lorrain, Montreal, D. A. Cameron, Toronto,
took an active part in the proceedings and discussions.
Perhaps the most important of these addresses was J. F.
Darling's proposal for the organization of an Imperial bank-
clearing system based upon the Bank of England. He would,
first of all, "follow the lead of the United States and introduce
bills of exchange as a currency basis and thus improve somewhat
on the Federal Reserve system." Following the stabilization of
exchange Mr. Darling declared that his Central bank scheme
would only require the co-operation of the 125 banks of the
British Empire — plus the enormous number of branches. It
would not compete with other Banks in ordinary banking busi-
ness, but be the banker of Governments and of Banks with a
central office in London and branches throughout the Empire.
The plan included (1) an extension of the Bank of England's
note issue against self-liquidating Bills of Exchange ; (2) Bank
of England notes to be used in place of gold against any increase
in existing Note issues in the Empire; (3) the Bank of England
to open offices wherever necessary in order to keep the accounts
of the banks of the Empire ; (4) the Bank to make transfers at
par in its books, when necessary by cable, between the accounts
of these banks; (5) the capital of the Bank of England to be
increased to, say, £20,000,000 by alloting the increase of £5,447,000
CHAMBERS OF COMMERCE OF THE EMPIRE CONGRESS IN 1920 207
to the Dominions ; (6) the Dominions to have representatives on
the Board of the Bank of England. Sir Edmund Walker, in his
comment upon the proposals, pointed to Canada's difficulty in
being associated so closely in trade, finance and currency condi-
tions with the United States; geography had made New York
the centre of the continent and the settlement basis for Canadian
financial interests. There was no serious discussion of the
Banking scheme. The following Resolutions were carried:
1. A message of loyalty to H. M. the King and expression of grati-
tude to His Majesty's forces on sea and land and in the air for their serr
vices in the War.
2. That the Congress records with satisfaction the action of His
Majesty's Government in convening the Imperial Statistical Conference,
and desires to express its endorsement of the proposal for the establish-
ment in London of a Central Bureau of Statistics, adequately equipped
and staffed, for the purpose of obtaining, collating, examining and pub-
lishing statistics which bear upon the conditions and resources of the
Empire and the relations of its members with one another and the rest
of the world.
3. That this Congress regrets the apparent exclusion from the Im-
perial Shipping Committee of representatives of shipping and trading
interests of the British Dominions and Dependencies.
4. That a comprehensive summary of the industries, natural re-
sources and advantages of all parts of the Empire, with authoritative
reports from time to time upon current conditions and development,
should be prepared so as to be available to all, and that the emigration
of British citizens between Great Britain and her Overseas Dominions
be facilitated and encouraged and, if necessary, subsidized.
5. That this Congress, realizing the importance to the Empire of
the textile industry and the many trades subsidiary thereto, views with
concern the probable inadequacy of future supplies of raw cotton and
urges the Imperial and Colonial Governments to take all possible steps,
in close co-operation, to advance and promote the growing of cotton
within the Empire.
6. That a commercial survey of the timber available in the Empire
should be made by the competent authorities, with a view to the larger
utilization of supplies from this source and the development of practical
forestry on scientific lines.
7. That this Congress reiterates the opinion as to the urgent neces-
sity of establishing without further delay cable communication between
the various parts of the Empire, passing solely through British terri-
tory, and recommends that a sufficient subsidy be provided by the par-
ticipating Dominions, or Colonies and Great Britain.
8. That as to Cables the date of filing message and name of country
of origin should be recorded on all messages ; that the whole question of
war-time censorship, use of public and private codes, transmitting signa-
tures to all cablegrams, and cable and telegraphic delays, be considered
by the British Imperial Council of Commerce with a view to the formu-
lation of a plan of operation on the outbreak of war.
9. That this Congress desires to emphasize the urgent necessity of
establishing a network of high-power wireless stations throughout the
Empire and urges the Home and Dominion Governments to take the
necessary steps to this end without further delay.
10. That the movement initiated in 1913 for promoting the establish-
ment of an Imperial Air Fleet and an all-red route of aeroplanes and air-
ships round the Bhitish Empire merits cordial and active support.
11. That this Congress re-affirms its opinion in favour of Preferen-
tial trade within the British Empire and pledges itself to press upon the
various Governments concerned the desirability of taking action to give
208 THE CANADIAN ANNUAL REVIEW
effect to this principle; that, in any consideration of Preferential trade,
tariffs should be framed in regard to the rates of water freight and other
differential conditions, if any, prevailing in exporting countries; that
every effort should be made to promote reciprocity with all parts of the
British Empire.
12. That the Home Government be asked to call an Imperial Con-
ference on the stabilization of our inter-Empire exchanges by the co-
operation of the Home Government with the Governments of the Do-
minions and India.
13. That it is desirable that, with a view to the encouragement of
closer trade relations with the Empire, special efforts should be made
by various existing propagandist agencies, and especially by the wider
distribution of trade journals throughout the Empire, and that more
favourable postal facilities should be accorded by the various Govern-
ments to this end; that wider publicity and tuition be given in regard to
the necessity of manufactures adapting their wares to the requirements
of importing countries.
14. That all associated Chambers and Boards be asked to give em-
ployment preference to ex-Service men.
15. That negotiations should be at once initiated looking to the abro-
gation of the 30 per cent, differential duty established by Venezuela upon
products of the British West Indies.
16. That it is desirable that shipowners and others in the United
Kingdom who control shipping and freight rates should be legally re-
quired so to conduct their business that other countries are not favour-
ed ; that the time has arrived for the repeal of all existing legislation and
the substitution therefor of an Empire Merchant Shipping Act, to apply
to all vessels entering or clearing at any Custom House within the Em-
pire.
17. That the British Merchant Marine should be maintained in its
commanding position and that every Colony possessing the facilities to
aid in this purpose be encouraged to maintain shipyards and to contribute
all the British bottoms possible, thus retaining for the benefit of the Em-
pire the skilled mechanics who are being sought by other countries ; that
the establishment of free ports should be studied by the Imperial and
Colonial Governments with the view, if the project be approved, that at
least one free port should be established at the terminal point of each
important system of navigation ; that trade between the ports of the
British Empire should henceforth be regarded as "coastwise" for the pur-
pose of shipping subject to power being reserved to enter into arrange-
ments of a reciprocal character.
18. That the British Imperial Council of Commerce be requested to
take into consideration the desirability of having prepared a manual on
the procedure it is, inter alia, necessary for commercial consignees to
follow on the outbreak of war.
19. That it is of vital importance to Canada and the British Empire
that British-Canadian ports of a national character should be developed
and equipped to the highest standard of efficiency, as speedily as pos-
sible, and utilized to the fullest extent in the handling of inward and out-
ward bound commerce.
20. That a 20-knot steamship service should be established between
the United Kingdom and Halifax in the winter, and Quebec in the sum-
mer ; that, owing to the shorter mileage of the Canadian route, such a
service would be as fast as the present 25-knot service to New York;
that it should be followed by the establishment of an 18-knot steamship
service in the Pacific Ocean, between Vancouver, New Zealand and Aus-
tralia.
• t21', ^T**, the ImPerial and Canadian Governments should arrange
with the Underwriters in such a way that the Marine Insurance Rates
for Canadian Ports should be the same as for New York, so as to favour
Imperial trade.
1
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Q "'"'""
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CHAMBERS OF COMMERCE OF THE EMPIRE CONGRESS IN 1920 209
22. That by the use of powerful steamers and ice-breakers — as in
the Baltic — the St. Lawrence season could and should be extended two
or three months, to the great advantage of Canada.
23. That it is desirable in the interests of the shipping public gener-
ally that a universal or standard form of wording be adopted throughout
the British Dominions for all invoice purposes requiring a Customs dec-
laration ; that for this purpose it is desirable to hold a conference of
Customs officials representing all parts of the Empire.
24. That if and so long as the British Government wishes to exclude
store cattle or other animals, particularly from parts of the Empire out-
side of Great Britain, such exclusion should be clearly stated to be on
grounds of general policy and not on account of disease where none
exists.
25. That this Congress endorses the desirability of codifying and as-
similating Commercial Law throughout the Empire as far as possible
and, further, is of opinion that the law in regard to Bills of Lading and
the enactment of uniform laws in relation to Trade Marks, Designs and
Copyright, should receive first consideration.
26. That this Congress protests against the practice which prevails
in some countries of placing false trade marks and marks of origin upon
goods not made in the British Empire; that it strenuously protests
against the practice which prevails in some countries of placing British
Hall Marks upon (a) silver goods not made in the United Kingdom, and
(b) electro-plated goods.
27. That the early and general adoption of commercial arbitration
in business disputes throughout the Empire is desirable ; that the Home
and Dominion Governments should encourage the general adoption of
the Metric or decimal system in the British Empire by every practicable
means.
28. That this Congress desires to express itself in favour of the es-
tablishment of a League of English-speaking peoples.
It may be added that the Preferential Tariff Resolution was
carried by 85 votes to 21 ; that Lloyd Harris, formerly head of
the Canadian Trade Mission in England, advocated the formation
of an Imperial Trade Committee, consisting of three representa-
tives of each of the Dominions and Colonies, with representation
of the Mother Country, to sit in London as a permanent Council
to study Imperial questions ; that the final address in the Pre-
ferential debate was delivered by Sir George Foster, who argued
that each of the British nations must adopt the fiscal policy
which would best serve and advance its interests. At the ban-
quet given by the Toronto Board of Trade to the Delegates on
Sept. 21 Charles Marriott presided and the speakers were Lord
Desborough, Sir George Foster, P. W. Ellis, Hon. E. C. Drury,
Sir Edmund Walker, Sir Thomas Mackenzie, Mark Sheldon,
George Summer, President Montreal Board of Trade, Hon. F.
Carrel, Quebec, M. F. Christie, Winnipeg, Sir Alex. McRobert
and A. J. Hobson.
During the Sessions of the Congress there was a garden
party at Government House, a Review of Cadets, a Reception at
the Royal Ontario Museum ; following it there was a visit to
Niagara Falls and Queenston Heights, a visit to Brantford and a
Dinner by the local Chamber of Commerce on Sept. 27; the en-
suing tour of Ontario included London, Windsor, (Detroit, U.S.),
Guelph, Hamilton, North Bay and Copper Cliff and Espanola,
8
210
THE CANADIAN ANNUAL REVIEW
Sault Ste. Marie, Temiskaming District — including New Lis-
keard, Cobalt and Haileybury, Timmins and the Hollinger Mines,
Iroquois Falls and Ottawa ; in Quebec, Shawinigan, Montreal,
Quebec City and varied points of interest in the Province were
visited. Banquets and a cordial reception were given every-
where ; some of the Delegates visited the United States — includ-
ing Philadelphia, Boston and New York, and were hospitably en-
tertained. A special train was provided by the Railways in On-
tario and Quebec; on Oct. 13 the Delegates sailed by the Empress
of Britain.
The Imperial
Conference
of 1921; In-
fluence of
the Canadian
Premier.
This gathering of British Empire Prime Min-
isters plus the representatives of India and other
members who were not Premiers, was an exceed-
ingly important meeting though not in exactly the
forms or with the results expected. It had not the
powers tacitly conceded the Premiers and Ministers
sharing in the Imperial War Cabinet of 1917-18; it
did not meet to make any constitutional changes in the Empire
system ; its agenda of debate and decision was restricted and the
Constitutional Conference recommended at the Imperial Con-
ference of 1917 was indefinitely postponed ; it came to no de-
cision as to a united Naval policy which the British Government
undoubtedly desired and its purely constructive action was
limited. Yet it helped in solving the Japanese-United States
problem as it affected the British Empire and it precipitated the
holding of the Washington Peace Conference.
Much was expected from the meeting and Mr. Lloyd George
in the Commons on Feb. 16 laid stress upon the Defence ques-
tion : "The defence of the Empire ought to be an Imperial con-
cern. It is too much to ask these small islands, with the gigantic
burdens they are bearing, and bearing very gladly, to undertake,
themselves, the whole burden of the defence of this gigantic
Empire in every sea, Atlantic and Pacific alike." He declared
the forthcoming Conference to be "one of the most momentous"
in the history of the Empire : "If there is a general sense that
we must make common cause to defend the liberties of the world
and the interests of the Empire, and it is known that, in the event
of some great upheaval like the late War, the Empire is ready
in future to repeat the great effort of the past, that will be one
of the soundest guarantees for peace, for this British League of
Nations has also got a word to say in the settlement of the
world's affairs."
In the Canadian Parliament on Apr. 25 Mr. Premier Meighen
explained that this was the first opportunity since the last meet-
ing of the Peace Conference for "personal and direct consulta-
tion between the Prime Ministers on the broad issues of policy."
It had been hoped to have one in 1920; finally the British Gov-
ernment's invitation was accepted in October of that year for
IMPERIAL CONFERENCE OF 1921; MR. MEIGHEN'S INFLUENCE 211
June, 1921. The meeting was to be of "a special and preliminary
character having in view the necessity of discussing (1) prep-
aration for the special Constitutional Conference, contemplated
in Resolution 9 of the Imperial War Conference of 1917, to be
held at a later date"; (2) a general review of the main features
of Foreign relations — particularly as they affected the Domin-
ions; (3) the question of the renewal of the Anglo- Japanese alli-
ance which'was especially urgent; (4) "Preliminary considera-
tion of some working method for arriving at a common under-*
standing as to the policy in such external affairs as concern all
parts of the Empire." Additional topics were suggested after-
wards by the Governments of Britain, India or Australia and
were described by the Canadian Premier as extensions of the
original programme ; he stated, also, that his Government had ex-
pressed doubt as to the inclusion of some of them and that the
additional agenda which follows could not be regarded as a hard
and fast arrangement:
Inter-Imperial communications by Land, Sea and Air.
The position of British Indians in other parts of the Empire.
Naval, Military and Air defence.
The recommendations of the Overseas Settlement Conference recent-
ly held in London.
The development of Civil Aviation.
The reports of the Imperial Shipping Committee appointed as a re-
sult of Resolutions 11 and 24 of the Imperial War Conference of 1918.
The findings of the Technical Commission appointed to discuss the
question of Imperial Wireless communications.
The question of German Reparations, including the division as be-
tween the various parts of the British Empire of any amounts received.
Imperial Statistical Bureau; Imperial Patents.
The matter was discussed, again, at Ottawa* on Apr. 27 upon
motion of Sir Robert Borden who, in an elaborate speech, dealt
with the constitutional evolution of the Dominions and conclud-
ed with this statement: "We cannot assume or accept the
status of nationhood without accepting also its responsibilities.
I earnestly hope that the burden of providing for defence will be
much less in the future than in the past. But, whatever the
burden may be, I believe it will be less upon this country as a
nation of the Empire than if we stood separate as an independent
nation, x x x I believe that the security and permanence of the
Empire are to be found in the association of its democracies upon
a basis of autonomy, liberty and co-operation rather than in
Parliamentary federation." Mr. Mackenzie King, Opposition
Leader, followed and declared that this was not an opportune
time to settle some of the very important questions specified
above. He questioned the correctness of Mr. Winston
Churchill's description of the coming meeting as an Imperial
Peace Cabinet and moved a Resolution declaring that: "This
House, while recognizing the propriety of Canada being repre-
sented at any Imperial Conference or Conference of the Prime
Ministers of the Empire that may be called, desires to record its
opinion that at the coming Conference no steps should be taken
212 THE CANADIAN ANNUAL REVIEW
in any way involving any change in the relations of Canada to
other parts of the Empire ; and that, in view of the present fin-
ancial position of Canada, no action should be taken implying any
obligation on the part of Canada to undertake new expenditures
for naval or military purposes."
Mr. Meighen replied by declaring that consultation and con-
}.. ference were incompatible with instructed delegates and claim-
i ing that he must go to the Conference free to discuss any ques-
tion which came up ; at the same time all decisions taken would
be submitted to the Canadian Parliament for approval. He re-
viewed the functions of the Imperial War Cabinet which he de-
scribed as "a consultative body, not an executive": "It was a
cousultative body, this is a consultative body — a body whereby
the various units that compose the Empire can meet, get each
other's opinions, learn each other's conditions, then come back
to the Parliaments from which they are sent and make such
recommendations as to them seem best suited to the need." Mr.
Lemieux and Mr. Rowell followed in elaborate speeches with
others from H. Deslauriers, J. A. Currie, F. Rinfret, etc., and
then the motion was defeated by 96 to 64. The general tone of
the debate showed that the Imperial Defence question might be
discussed at the Conference but should not be decided.
Meanwhile, the status of the Conference was much dis-
cussed. The British Premier had frequently styled it an Imperial
Cabinet and so had Mr. Massey, Prime Minister of New Zea-
land; Mr. Churchill, Secretary for the Colonies, stated on Apr.
25 that this was a very important year in the life of the British
Empire, for it would see "the first Peace meeting of the Imperial
Cabinet" — a meeting of the regular Imperial Cabinet of the
British Empire, and there were many matters of great conse-
quence to be discussed ; Lord Curzon, Foreign Secretary, in the
Lords on Feb. 15 described it in the same terms as "the summon-
ing of an Imperial Cabinet, which became while it lasted a new
and powerful organ of government, all its members being invest-
ed with the full authority and rank of Cabinet Ministers, and its
decisions being not merely decisions of the British Government,
but of the British Empire."
Sir Joseph Cook, acting Prime Minister of Australia, stated
in his Parliament on June 1st that the Imperial War Cabinet had
been of the greatest possible usefulness during the War. He
went on to say that : "It simply provided that all the Dominions
should be taken into the confidence of, and consultation with, the
Imperial Government; I cannot conceive anything more useful,
now, so long as it follows the same plan and has the same ob-
jective. It will be both a Cabinet and a Conference." This was
not exactly the view expressed by Mr. Meighen at Ottawa, who
described the War Cabinet as little more nor less than a Confer-
ence. In the British Commons on June 17 Mr. Austen Chamber-
lain, Government leader, described the following suggestions of
IMPERIAL CONFERENCE OF 1921; MR. MEIGHEN'S INFLUENCE 213
his Government as the chief subjects for consideration at the
Conference :
The Naval, Military and Air Defences of the Empire.
Arrangements for securing common Imperial policy in Foreign
affairs.
The question of the renewal of the Anglo-Japanese Alliance.
The composition and agenda and meeting place of the proposed Con-
stitutional Conference.
As a matter of fact, the gathering was both a Cabinet and a
Conference. It met in secret Sessions, it was composed only of
members of various Empire Governments — except in the case of
India, it was taken into the absolute confidence of the British
Cabinet, its members had the support of their respective Parlia-
ments and from Cape Town, Ottawa and Melbourne each Premier
had come with a direct expression of confidence from the ma-
jority. During the proceedings and following the precedent set
during the Imperial War Conferences, the Cabinet principle
actually was applied as it had been in respect to the War Cabi-
net. From 1916 till the Armistice the Prime Ministers of the
Dominions and the representatives of India frequently sat with
members of the British Cabinet to determine the measures
necessary for the prosecution of the War. This method of pro-
cedure was also adopted by the British Empire Delegation dur-
ing the Peace Conference in Paris ; where all cardinal decisions
were taken by the Delegation as a whole.
In accordance with this precedent the Prime Ministers of
the Dominions and the representatives of India present in Lon-
don in 1921 were invited to meetings with members of the Brit-
ish Cabinet ; they were called to deal with Imperial and foreign
questions of immediate urgency which arose in the course of the
sittings. One of the most important of these was the Upper
Silesian question which, during the session of the Conference,
assumed an acute form, and was debated at each stage by the
members of the Conference, whose interest in a matter so close-
ly affecting the relations of Great Britain and France was incon-
testable. The main lines of British policy in connection with the
solution of this problem received the unanimous approval of the
Conference. The constitutional difference between this form of~l
procedure and an ordinary Cabinet was, of course, the fact (1)
that the body was not responsible to a single Legislature, that
(2) it was not united under one Prime Minister but under sev-
eral, and (3) that any decisions by majority vote could not be en-
forced upon the minority. The idea or possibility of an Imperial ,
Cabinet was denounced by the Toronto Star, the Winnipeg Free
Press and the Toronto Globe. The latter on June 21 described
it as a delusion: "The Mother of Parliaments would be shorn
of her authority if the affairs of the Empire were entrusted to a
group of men responsible to no Parliament."
The Conference finally met at No. 10 Downing Street, the
Prime Minister's offices, on June 20. It was constituted as fol-
214 THE CANADIAN ANNUAL REVIEW
lows: United Kingdom, Rt. Hon. D. Lloyd George (Prime Min-
ister), Rt. Hon. Austen Chamberlain, Rt. Hon. A. J. Balfour, Rt.
Hon. Winston Churchill; Canada, Rt. Hon. Arthur Meighen,
Prime Minister; Australia, Rt. Hon. W. M. Hughes, Prime Min-
ister; New Zealand, Rt. Hon. W. F. Massey, Prime Minister;
South Africa, General the Rt. Hon. J. C. Smuts, Prime Min-
ister, Sir Thomas Smartt, Minister of Agriculture, and Col. the
Hon. H. Mentz, Minister of Defence ; India, Rt. Hon. E. S. Mon-
tague, Secretary of State for India, the Maharajah of Cutch and
Rt. Hon. Srinivasa Sastri. Other members of the British Cabi-
net were present from time to time as matters associated with
their Departments came up — Lord Curzon, Lord Lee of Fare-
ham, Sir L. Worthington-Evans, Sir Robert Home. As to
Canada, Hon. C. C. Ballantyne and Hon. Hugh Guthrie were
present in London, though not officially as Delegates, and they,
with Sir George Perley, aided Mr. Meighen. Mr. Lloyd George
delivered the opening address in terms of characteristic breadth
and capacity. "There was a time," he added, "when Downing
Street controlled the Empire. To-day the Empire is in charge
of Downing Street." His picture of the Empire was vividly
drawn :
The British Empire is a saving fact in a very distracted world. It
is the most hopeful experiment in human organization which the world
has yet seen. It is not so much that it combines men of many races,
tongues, traditions and creeds in one system of government. Other
Empires have done that, but the British Empire differs from all in one
essential respect. It is based, not on force, but on goodwill and a com-
mon understanding. Liberty is its binding principle. Where that prin-
ciple has not hitherto been applied it is gradually being introduced into
the structure, x x x The British Empire is progressing very satisfactorily
from a constitutional standpoint. The direct communication between
Prime Ministers, as established during the War, has, I think, worked
very well, and we have endeavoured to keep you thoroughly abreast with
all important developments in Foreign affairs, x x x The British Do-
minions have achieved full nationhood and now stand beside the United
Kingdom as equal partners in the dignities and responsibilities of the
British Commonwealth.
Mr. Hughes supported the Imperial Premier on the Defence
matter : "You, sir, said some time ago, that Britain had paid so
dearly for victory and was groaning under so crushing a burden
of debt that it could no longer, alone, be responsible for the de-
fence of the Empire by seas as it had heretofore, and that the
other parts of the Empire must do their share. To that doctrine
I subscribe without reservation. I think it is the corollary of our
admission into the councils of the Empire to determine its for-
eign policy. Dangers to the Empire or to any part of it are to be
met, surely, by unity of action. That is at once the principle
upon which the Empire rests and upon which its security de-
pends." The other Premiers spoke, as did Mr. Sastri for India
and Mr. Churchill for the Crown Colonies and Protectorates.
Mr. Meighen agreed with Mr. Lloyd George as to the import-
ance of the Conference system : "For ourselves, for this Britan-
IMPERIAL CONFERENCE OF 1921; MR. MEIGHEN'S INFLUENCE 215
nic commonwealth of nations, this method or principle has a
peculiar significance. We are united by the history of our being,
by a mutual trust, and by a fundamental intention to preserve a
common allegiance. We, therefore, confer under conditions par-
ticularly favourable, in free and open communication, one with
another, and in an atmosphere of complete mutual confidence."
The ensuing discussions were varied and the points of view
equally so. The renewal of the Anglo- Japanese Treaty was, per-
haps, the dominant subject; Mr. Meighen early took the ground
that, in the interests of harmony between the United States and
Great Britain, it should not be renewed ; Australia and New
Zealand wanted its renewal, desired the support of Japanese
power in Eastern seas, preferred the friendship and co-operation
of Japan to possible misunderstanding and hostility, but were
quite ready to ensure that such a Treaty should never be directed
against the United States ; South Africa was more or less indif-
ferent while Great Britain, of course, appreciated its indebted-
ness to Japanese support — financial, naval, and as a matter of
prestige during the War — and understood how useful it might
still be in times of Eastern trouble. Out of the ensuing discus-
sion, the debates on Naval affairs and the keen interest of Aus-
tralasia in the peace of the Pacific came the urgent call for a
Pacific Power Conference ; the negotiations of the British Gov-
ernment with Washington to this end ; the sudden invitation by
President Harding to a wide inter-national Peace Conference.
On June 22 Lord Curzon gave the Conference a long, com-
prehensive, confidential review of the Empire's Foreign policy,
commitments and conditions ; he was plied with questions and
answered them all with frankness ; while Mr. Churchill, as hav-
ing charge of British interests in the Near East, in Egypt, Meso-
potamia and Palestine, described matters there and outlined in
detail the Government's policy and responsibilities. The conver-
sations upon Foreign policy were long, minute, detailed ; the ob-
jects were (1) putting all the ideas of the Delegates into a com-
mon stock; (2) careful examination of intricate questions from
different standpoints, and (3) free and full discussion of aims
and methods to be followed. According to the Official Report
issued on Aug. 5, these discussions revealed a unanimous opinion
as to the main lines to be followed by British policy, and a deep
conviction that the whole weight of the Empire should be con-
centrated behind a united understanding and common action in
foreign affairs.
Constitutional subjects and the proposed special Conference
in that connection were discussed on the 24th. Mr. Meighen
strongly emphasized his view as to full autonomy for the com-
ponent parts of the Empire being essential to unity and pros-
perity and, also, as to the desirability of close friendship with the
United States. In the special 100th year issue of the Manchester
Guardian the Canadian Premier had clearly outlined his opinion
along these lines on May 5 preceding the Conference: "If there
216 THE CANADIAN ANNUAL REVIEW
is a practical need for closer constitutional organization it seems
not unlikely to be met, not so much by novel devices in state
organization, as by clearly understood and definitely accepted
declarations of principle, which would obviate the uncertainties
and distractions to which allusion has been made, with improve-
ments in so much of the form and consent of the existing me-
chanism as may be found obsolete." It was on June 27 that Mr.
Meighen elaborated at the Conference his general view as to
Foreign policy and consultation with the Dominions and, espec-
ially, Canadian control over Empire policy toward the United
States.*
Though General Smuts' speech was not made public, he had
expressed a rather modified view in a Times interview on June
11: "It has been suggested that as the Dominions are autono-
mous nations owing allegiance to a common Sovereign, they
should each be able independently to tender advice to the Sov-
ereign ; but I do not think the solution for which we are looking
is to be found in that direction only. We must find a means of
co-ordinating our several views to meet the common interests of
all the component parts of the Empire." As to the proposed
Constitutional Conference, it was stated by Resolution that no
present advantage would be gained by holding one ; all four Do-
minion Premiers, as a matter of fact, were expecting Elections
within a year and the difficulties were obvious.
A subject of serious import was the insistence of the Indian
delegates upon a full discussion of the status of British Indians
in British countries such as Canada and South Africa and British
East Africa or Kenya ; it was finally referred to a Committee.
Another problem reviewed was that of Air defence and, on July
5th, Field Marshal Sir Henry Wilson and Air-Marshal Sir Hugh
M. Trenchard, supported by various experts and officials, made
lengthy statements outlining the Empire's position respecting
both land and air ; this, also, was referred to a Committee and
neither Empire Air nor Wireless communication plans apparent-
ly found favour with Mr. Meighen. Mr. Hughes was enthusi-
astic as to both. "It is," he said toward the close of the Confer-
ence, "essential — if our voice in the counsels of the Empire is to
be a real one, and not a shadow — that the various parts of the
Empire should have constant and speedy communications with
each other. The day is not far distant when the Prime Ministers
of the various Dominions will be in wireless telephonic com-
munication with each, other. It is quite possible to arrange for
an aeroplane service between here and Australia, and I think I
am safe in saying that airships can reduce the journey to some-
thing like ten days."
Canada was at this time the only Dominion having Wireless
communication with Great Britain. Mr. Meighen expressed his
desire for better Cable news and during the discussion (July 6)
*Note.— See Foreign Affairs Section of this volume.
IMPERIAL CONFERENCE OF 1921; MR. MEIGHEN'S INFLUENCE 217
said: "We know that the news that comes to Canada filters
through New York, indeed it is censored from the American
standpoint. And it has as a result an undesirable influence, and a
very serious influence it is." Both Mr. Churchill and Mr. Hughes
drew public attention to this condition but nothing very definite
was done. The former said to the Conference (July 6) that:
"It is not merely a question of the news and of the demand for
the news, but of the atmosphere created, and it is really a vital
thing that the British Empire should develop a strong British
Empire atmosphere, that we should know, in each part of the
Empire, what the other parts are thinking. There should be a
sympathetic understanding of each other's difficulties. It will
come when we are telling our story to each other rather than
having it told for us by other men."
German Reparations were discussed on the 6th. Under the
decision reached by the Supreme Allied Council, the Empire re-
ceived 22 per cent, of whatever Germany paid, 55 per cent, going
to France and the balance to Belgium and Italy and the other
allied nations. The task confronting the Conference was to fix
a basis upon which the amount received by the Empire should
be apportioned among its different parts. The difficulty in ob-
taining a basis for adjustment was found to be very great.
Finally, Canada's share of the estimated total of $30,000,000,000
was set at 4-35 per cent, of the British Empire total of $6,600,-
000,000, or $287,000,000, and Australia's was the same; South
Africa was to get 060 per cent., Newfoundland 0-10 per cent.,
India 1-20 per cent, and New Zealand 1-75 per cent. By the close
of the year, it may be added, $22,494,979 in Canadian war claims
had been filed at Ottawa for illegal acts of warfare committed
on Canadians and Canadian property by Germany and her allies
during the War, and Sir Douglas Hazen was appointed to in-
vestigate these claims and decide the amounts really due the
claimants.
Other questions discussed at the Conference were many and
one of those which most interested the members was the effort
to have a preliminary consultation with United States delegates
as to the Washington Conference and its proceedings. Many of
the Dominion Premiers could not attend the formal gathering at
the close of the year; all were concerned and interested in its
proposed work. The British Government did all that was pos-
sible, Japan signified its agreement, the Conference took up the
details in secret Session, but Washington would not accede to
the proposal or any modification of its original invitation. Mean-
while, the proceedings of the Conference were private though an
official report was issued from time to time ; General Smuts and
Mr. Meighen were understood to want publicity but the dangers
of diplomatic difficulty in many delicate negotiations and as to
varied international tender-spots were paramount with British
statesmen. To Canadians Grattan O'Leary sent despatches
218 THE CANADIAN ANNUAL REVIEW
which kept Mr. Meighen's views and work well before the
people; J. A. Stevenson sent letters to certain journals which
took the point of view opposed to all forms of constructive Im-
perialism. The Canadian Premier's policy pleased the Liberal
press of Canada and in England ; the Conservative papers natur-
ally found nothing in it to condemn. Speaking at the quaint but
brilliant function in the historic Guildhall on July 15, when Mr.
Meighen was given the Freedom of London, he offered an inter-
esting view of the relations of the Dominions to the Empire :
In our political institutions we are indeed replicas of this country.
The head of these institutions is the Sovereign common to us all and
revered by us all. In that fact, what I may call that momentous similar-
ity, are wrapped up the sense of our common mission on earth and the
secret of our unity. But I doubt if there is any other respect in which
the Dominions are replicas of the Motherland. Our geography is dif-
ferent, our neighbourhood is different, our racial composition is different.
The assets stored by nature in our soil are also different. No two nations
of this Empire have the same path to travel. Each encounters difficul-
ties and enjoys advantages all its own.
One of the questions much discussed was that of Emigration
and, after hearing the report of its Committee, the Conference
passed a Resolution declaring that "the several Dominions are
prepared, subject to Parliamentary sanction and to the necessary
financial arrangements being made, to co-operate effectively
with the United Kingdom in the development of schemes based
on these proposals (Report of Conference on State-Aided Em-
pire Settlement) but adapted to the particular circumstances and
conditions of each Dominion." Consideration of adapting exist-
ing legislation as to Land and Soldier Settlement in the Do-
minions to secure effective Imperial co-operation was, also, ap-
proved. The following Resolution as to the projected Constitu-
tional Conference was adopted:
(a) Continuous consultation, to which the Prime Ministers attach no
less importance than the Imperial War Conference of 1917, can only be
secured by a substantial improvement in the communication between the
component parts of the Empire. Having regard to the constitutional de-
velopments since 1917, no advantage is to be gained by holding a Con-
stitutional Conference.
(b) The Prime Ministers of the United Kingdom and the Dominions
and the Representatives of India should aim at meeting annually, or at
such longer intervals as may prove feasible.
(c) The existing practice of direct communication between the Prime
Ministers of the United Kingdom and the Dominions, as well as the right
of the latter to nominate Cabinet Ministers to represent them in consul-
tation with the Prime Minister of the United Kingdom, are maintained.
No Resolution was passed as to the League of Nations but
a statement was made by Mr. Balfour and there was general
appreciation expressed as to its work and claim to the support of
the British Empire as a step forward in the regulation of inter-
national affairs. Close consideration was given to the question
of British policy in Egypt and the future status of that country,
and general agreement was reached regarding the principles by
IMPERIAL CONFERENCE OF 1921; MR. MEIGHEN'S INFLUENCE 219
which His Majesty's Government should be guided in the nego-
tiations with the Egyptian Delegation. The Naval and Imperial
Defence policy of the Conference was summed up in a motion de-
ferring consideration or recommendations until after the Wash-
ington Conference ; useful consultations were held, however,
with the Admiralty and the Military and Air Staffs as to prin-
ciples and details of co-operation.
It was arranged that British Aviation material useful for
Imperial air communications was to be held available pending
consideration by the Governments of the Dominions as to pro-
posals made by the British Government ; this consideration
eventually was unfavourable and the material was scrapped or
sold. As to the Imperial Wireless scheme, it was agreed by
Resolution that: ''His Majesty's Government should take steps
for the erection of the remaining stations for which they are re-
sponsible, as soon as the stations are designed ; that the Govern-
ments of Australia, the Union of South Africa, and India, should
take similar action so far as necessary, and that the Govern-
ments of Canada and New Zealand should also co-operate."
Other Resolutions were passed as follows:
1. Approving uniform legislation on the limitation of shipowners'
liability by clauses in bills of lading and also continuance of the existing
Imperial Shipping Committee.
2. Asking the Radio Research Board to investigate the subject of
wireless telephony and to report on its development — whether Govern-
mental or private.
3. Declaring that "any assistance given by the Governments of the
Empire towards the reduction of rates for Press services by wireless and
cable should appear specifically in the estimates of public expenditure,
and should be so directed as not to affect the quality of the News ser-
vice supplied or the freedom of the newspapers so served."
4. Stating that "in the interests of the solidarity of the British
Commonwealth, it is desirable that the rights of Indians to citizenship
should be recognized."
5. Urging that "a Conference of representatives of the Patent Offices
of His Majesty's Dominions be held in London at an early date to con-
sider a system of granting patents which should be valid throughout the
British Empire."
The Conference closed on Aug. 5 after passing an Address
to the King which declared that: "We have been conscious,
throughout our deliberations, of a unanimous conviction that the
most essential of the links that bind our widely spread peoples is
the Crown, and it is our determination that no changes in our
status, as people or as Governments, shall weaken our common
allegiance to the Empire and its Sovereign." During the pro-
ceedings there were 34 plenary meetings, 11 meetings of the
Prime Ministers, or what were termed Imperial Cabinet meet-
ings, and eight meetings of the Committees at the Colonial
Office. It may be added that Loring C. Christie, of Ottawa, was
Mr. Meighen's legal adviser during the Conference.
The general results of the Conference were valuable and
some vital. It paved the way for the greater Washington
220 THE CANADIAN ANNUAL REVIEW
Conference; its discussions focussed world-attention upon
the Anglo- Japanese alliance and really initiated an in-
ternational settlement of the issue ; it helped in point-
ing the way of Ireland to Dominion status and enabled
General Smuts to act in the negotiations with pivotal
force; it awakened Dominion statesmen to the tremendous
issues of British Foreign policy; it settled the question of
distributing German reparation moneys — when received! At
the same time practical steps such as Wireless, Aviation and
other matters of inter-Dominion and British interest were un-
doubtedly side-tracked. Speaking to the press at Halifax on
Aug. 6 Mr. Meighen said : "I will give you one thought that the
experience of the past few weeks has impressed on my mind. I
have been impressed with the real value, the undoubted necessity
of these Conferences. It is not a mere platitude, much less an
empty patriotic boast, to say that Great Britain is the greatest
factor in the^world to-day for preserving peace. The influence
of the British statesmen in the councils of the world is greater
because the Dominions and India are within the Empire and be-
cause she reflects, or wants to reflect, their views as well as
her own. So far as Foreign policy is concerned, I do not think
there are many in Canada who would have this country decline
the invitation to come and help. We must walk with the nations
of this Empire or walk away from them. The gospel of isola-
tion is the gospel of separation, under a thin disguise. I be-
lieve in the British Empire."
Meanwhile, Mr. Meighen, as Prime Minister of Canada, had
figured largely in the public eye — apart altogether from the ac-
tual incidents of Conference debate. On June 20 he was the
guest of the Benchers of Gray's Inn and, in response to the toast
of his health by the Lord Chancellor (Lord Birkenhead) spoke
in terms of well-ordered thought with the following conclusion
as to the Empire's constitution: "We legislate each for our-
selves unfettered; we confer together in order better to
understand the wider over-riding common interest;- we
advise through separate Privy Councils a common Sov-
ereign; we have a sense of independence and a sense of
unity, and these do not clash; they are in harmony."
With the other Prime Ministers he was guest at the
Parliamentary dinner in the Royal galleries of the House
of Lords on June 24. To him on this occasion: "The War
had shown how no country, no continent, might live unto itself.
The world once centred around the Mediterranean, then round
the Atlantic; its centres of gravity might now be the Pacific;
but Britain's interests were world-wide." At the Dominion Day
dinner he was, of course, a central figure with speeches, also,
from the Duke of Connaught, Hon. L. Athanase David of Que-
bec, Hon. Hugh Guthrie and Rt. Hon. Srinivasa Sastri. Follow-
ing this on July 3rd Mr. and Mrs. Meighen visited France to in-
IMPERIAL CONFERENCE OF 1921; MR. MEIGHEN'S INFLUENCE 221
spect the graves of Canadian soldiers in the War cemeteries ; on
the crest of Vimy Ridge the Premier unveiled a great War Me-
morial— the Cross of Sacrifice — and delivered an eloquent ad-
dress.
Mr. Meighen and his wife were guests at a State banquet
given by the King and Queen at Buckingham Palace on July 4 in
honour of the King and Queen of the Belgians and attended a
State ball at the Palace on the 7th; they were at a luncheon
given by the Prince of Wales at St. James's Palace on June 29
and at a dinner given by Lord and Lady Byng of Vimy on the
28th ; they attended a Government reception at Lancaster House
and were the guests of Mr. and Mrs. Lloyd George at Checquers
Court on the ensuing week-end (July 9-11) ; they were given a
luncheon by Sir George and Lady Perley at the Ritz Hotel. As
Prime Minister of Canada, Mr. Meighen was given the Freedom
of London on July 15 amidst scenes of traditional pomp and
ceremony and Mr. and Mrs. Meighen were afterwards enter-
tained at luncheon by the Lord Mayor at the Mansion House ; on
the 18th the Premier was given the Freedom of the City of Edin-
burgh and made an Hon. LL.D. of the University. In some fare-
well words to the press on July 30 Mr. Meighen said : "I shall
go home satisfied with the trend of events generally and with the
progress made. We did not all come to London with the same
views, and we may not have the same views yet, but common
objects were sought and common ground was found. I have
been impressed with the fair disposition of British statesmen
toward the opinion of Dominion Ministers, and with the spirit
of unity and equality that was manifest in all discussions."
As to the rest, it may be stated that the British press was
very eulogistic of the personality and speeches of Mr. Meighen ;
that it recognized the Conference as a very important gather-
ing; that Newfoundland was not represented owing to the in-
ability of its Premier, Sir R. A. Squires, to attend. In the British
Commons on Aug. 18 Mr. Lloyd George discussed the decision
against having a Constitutional Conference: "We decided that
it was better not to enter into definitions, not to lay down rules.
The Empire has grown, developed, consolidated in a way which
nothing could make possible but the gigantic events which, in
testing it, were bound either to break it or to solidify it. The
thing that matters is as frequent Conferences as time and dis-
tance will permit." With this view, Sir Robert Borden in Canada
did not quite agree and in his Marfleet lecture at Toronto Uni-
versity (Oct. 7) said: "The Foreign policy of the Empire re-
mains under the same direction and influence as before the War,
and that is not what we intended should be the case when we
took our stand in 1917; it is imperative that old conditions should
not go on."
222 THE CANADIAN ANNUAL REVIEW
The Empire Universities' meeting was the
Congress of second of a series ; the first was held in London in
Empire Uni- 1912 and resulted in the formation of an Imperial
versities; Universities Bureau and the decision to meet once
Imperial^ in every five years. As with many other things, the
Snference; War prevented the 1917 gathering; the Congress
Rhodes was finally convened at Oxford for July 5-9, 1921.
Scholars of There was an attendance of 400 delegates and every
the Year. part of the £mpire was represented together with
58 out of its 59 Universities. Prior to and after the
meeting an itinerary of British travel was arranged for the visit-
ors with a view to their seeing every University in the British
Isles. Commencing this tour on June 25, they visited the Welsh
and Irish Universities, reaching Oxford on July 5. After the
Congress they proceeded for a three-days' visit to Cambridge
and then took up their time until July 20 in being received and
entertained at the Scottish and English provincial Universities.
At the Congress itself the opening ceremonies in Oxford
were presided over by the Marquess Curzon of Kedleston, K.G.,
and the ensuing Sessions had, as presiding officers, the following
notable m^n in the public life of Britain : Rt. Hon. A. J. Balfour,
Chancellor of the Universities of Cambridge and Edinburgh;
Viscount Haldane, K.T., O.M., Chancellor of the University of
Bristol ; Marquess of Crewe, K.G., Chancellor of the University
of Sheffield; Earl of Shaftesbury, K.P., Chancellor of Queen's
university, Belfast ; Lord Balfour of Burleigh, Chancellor of
the University of St. Andrews ;* Lord Robert Cecil, M.P., Chan-
cellor of the University of Birmingham ; Lord Kenyon, K.C.V.O.,
Chancellor of the University of Wales. Some of the subjects
discussed were (1) Universities and the Balance of Studies — in-
cluding the place of Humanities, of Physical and Natural
Science, and of Specialism in the Curricula ; Universities and the
Teaching of Civics, Politics and Social Economics ; Universities
and Secondary Education; Universities and Adult Education;
Universities and Technological Education; Universities and
Training for Commerce, Industry and Administration ; Universi-
ties and the Training of School Teachers ; University Finances ;
Universities and Research ; Interchange of Teachers and Stu-
dents ; Provision of temporary junior posts for graduates of
Colonial and Foreign Universities ; How to raise funds to make
a Trust for the promotion of migration of Students. The official
list of Canadian delegates was large and representative of the
best culture of the Dominion :
University
Alberta
Name
H Marshall Tory
Officer
President of University
Alberta.
British Columbia...
Dalhousie
British Columbia...
Dalhousie
... D. A. MacGibbon
.. L. S. Ktinck
..A. Stanley Mackenzie....
... R. W. Brock
... D. A. MacRae
.. Professor of Economics
.. President of University
.. President of University
... Professor of Geology
... Dean of the Faculty of Law
*Note.— I/ord Balfour died suddenly on the very day he was to have presided at
this meeting.
EMPIRE UNIVERSITIES AND IMPERIAL TEACHERS IN CONFERENCE 223
University
Dalhousie
Dalhousie
Laval
Laval
Laval
McGill
McGill
McGill
McGill
Manitoba.
Manitoba
Manitoba
Manitoba
Montreal
Montreal
Montreal
Montreal
Mount Allison
Monut Allison
Mount Allison
New Brunswick
New Brunswick
Queen's ......................
Saskatchewan ..........
Saskatchewan ..........
Saskatchewan ..........
Saskatchewan ..........
St. Francis Xavier
Toronto. ...................
Toronto ....................
Toronto ....................
Toronto ....................
Victoria, Toronto....
Name
. D. Fraser Harris
. H. L. Bronson Munro..
. L. St. Laurent
. J. Gravel
. A. Vachon
. Sir Arthur W. Currie
. F. D. Adams
H. S. Birkett
. W. Caldwell
A. H. R. Buller.
. A. B. Clark
. W. F. Osborne
. H. P. Armes
. Canon E. Chattier
. E. Montpetit
. L. de Lotbiniere-Harwood
. E. St. Jacques
. W. M. Tweedie
. Hon. A. S. White
. Rev. J. Line
. E. L. Harvey
. H. S. Stone
. Rev. R. Bruce Taylor
. J. L. Morison
. W. C. Murray
. W. S. Lindsay
. J. A. MacDonald
. Rev. G. F. R. Trench
Rev. J. J. Tompkins
. Sir Robert A. Falconer......
. J. A. Dale .„
. J. J. R. MacLeod
. J. C. McLennan
. Pelham Edgar.
Officer
Professor of Physiology
Professor of Physics
Professor of the History of Law
Professor agrege, Faculty of Law
Professor of Geology
Principal and Vice-Chancellor
Dean of the Faculty of Applied Science
Dean of the Faculty of Medicine
Professor of Moral Philosophy
Professor of Botany
Professor of Political Economy
Professor of French
Assistant Professor of Chemistry
Vice- Rector
President, School of Social Economics
Dean of the Medical Faculty
Professor of Clinical Surgery
Professor of English Language
The Supreme Court of New Brunswick
Professor of Systematic Theology
Professor of Modern History
Principal and Vice-Chancellor
Professor of History
President of University
Professor of Bacteriology
Professor of French
Principal of Emmanuel College
Vice-President of University
President of University
Professor of Social Science
Professor of Physiology
Professor of Physics
, Professor of English
Some of the more notable British and Empire delegates
were : Sir George Adam Smith, Aberdeen ; Sir Samuel Dill, Bel-
fast; Sir Wm. Ashley, Birmingham; Sir D. P. Sarvadhikari,
Benares ; Sir Isambard Owen, Bristol ; the Most Rev. Dr. J. H.
Bernard, Dublin; F. B. Jevons, Durham; Sir Richard Lodge,
Edinburgh; Sir Donald MacAlister, Glasgow; Sir C. Sankaran
Nair, Madras ; Sir Henry A. Miers, Manchester ; Sir Robert
Stout, Wellington, N.Z. ; J. H. Hof meyr, Johannesburg.
Incidents of the Session included a description by Prof. E.
Montpetit of how the University of Montreal had organized a
School of Social Economics where those who had received
classical culture could prepare themselves for public life ; the
conferring of the Hon. degree of D.C.L. upon Sir Robert Fal-
coner, President of Toronto University, Sir Robert Stout, Chan-
cellor of the University of New Zealand, and Sir Nilratan Sincar,
Vice-Chancellor of the University of Calcutta ; a skirmish, with
University commercial courses as the theme, led by Sir Theodore
Morison of Armstrong College, Newcastle, and a vigorous de-
fence of such courses from some of the Canadian delegates; an
attack by Dr. J. George Adami, Vice-Chancellor of Liverpool
University, and so long connected with McGill, upon the alleged
Provincialism of Universities supported by the State with a
reply from Sir R. Falconer of Toronto, who declared that "Na-
tionalization in Ontario is a success, and the danger of the limit-
ation of academic freedom by the Government is very small," and
from Sir Michael Sadler, Vice-Chancellor of Leeds, who support-
ed the Canadian view.
224
THE CANADIAN ANNUAL REVIEW
There was a prolonged and important discussion on Re-
search notably shared in by Prof. F. D. Adams of McGill, Sir
Ernest Rutherford of Cambridge and formerly of McGill, and
Prof. J. J. R. McLeod of Toronto; a speech by Dr. Edouard
Montpetit of Montreal, in which he showed the influence on
Universities exerted by the industrial revolution of the Nine-
teenth century and the consequently increased demand for train-
ing in science and political economy; the statement of Prof.
Caldwell of McGill that modern Universities were inclined to
compete with one another for students by offering an endless
variety of subjects — with a present tendency in Canada for limit-
ation rather than extension in this direction; an able speech by
President H. M. Tory, who led the Conference away from a maze
of theory created by preceding speakers and dwelt on the prac-
tical measures adopted by his institution to reach the farmers
of Alberta by lectures given before various clubs and so-
cieties, lantern slides, moving pictures, circulating libraries,
"pocket libraries" covering special subjects suitable for debates
on current topics, organized courses of reading, shelf libraries
on technical subjects and, finally, by a series of Conferences for
boys and girls at the close of each year's session; the declara-
tion by Sir Arthur Currie that "there is no room in the present
economy of things for a merely ornamental education, that the
centre of gravity in the world of human affairs is no longer polit-
ical, that it is an economic world."
The British Government on July 4 entertained the Dele-
gates, the Chancellors and Rectors of British Universities, and
many other members of the Congress at a luncheon at the Savoy
Hotel ; Mr. Balfour was in the chair and in his speech dealt with
the over-crowded condition of the Universities, the increasing
popularity since the war of University training, the advantage
of an inter-Imperial interchange of both teachers and students;
Sir Robert Falconer responded on behalf of the Overseas Dele-
gates. The results of the Congress were excellent. As Dr. Tory
pointed out in a review of the meeting: "It brought definitely
to the attention of the greatest body of men, interested in higher
education, ever assembled from the whole Empire, the essential
unity of their work, x x x A spirit of unity and understanding
was everywhere apparent. The outstanding differences of 1912
had melted away in the fiery furnace of war, and we all met as
old friends interested in a common cause." Its differences were
on details of operation, not of principle ; it gave a large number
of men, representative teachers and administrators an oppor-
tunity to become acquainted with each other and with the out-
look of the institution which each represented ; it greatly stimu-
lated the ideal and work of research. Sir Robert Falconer, on
his return to Toronto, after a visit, with many other delegates,
to a number of the leading British Universities, told The
Globe (Sept. 19) that a striking feature of the educational system
in England was the large number of bursaries and scholarships
EMPIRE UNIVERSITIES AND IMPERIAL TEACHERS IN CONFERENCE 225
provided by municipalities so that boys of character and brains
should not be handicapped by lack of money in securing a good
education. Sir Robert, from his personal observations and in-
terviews with leading men, expressed the conviction that Eng-
land would take its place as the world's centre of Higher Edu-
cation.
The Imperial Conference of Teachers. The 2nd Conference
of Teachers' Associations of the Empire was held at Toronto on
Aug. 10-13. Arrangements were in the hand of a Canadian Com-
mittee with J. L. Hughes, LL.D., Chairman, D. J. Goggin, D.C.I,.,
Vice-Chairman, H. V. F. Jones, Treasurer, and E. A. Hardy, Sec-
retary. The first Conference had been held in London in 1912
with the War preventing an earlier renewal of the meeting. The
League of the Empire had much to do with the Toronto gather-
ing and its Hon. Secretary in England, Mrs. Ord Marshall,
C.B.E., was a delegate together with Principal Maurice Hutton,
its President in Canada, and Mrs. H. S. Strathy the Hon. Secre-
tary in Canada. The Conference was held in Convocation Hall
of Toronto University and was opened on Aug. 10 with an ad-
dress of welcome by Hon. E. C. Drury, Premier of the Province ;
the Hon. R. H. Grant, Minister of Education, presided. Amongst
the delegates present were :
Rev. A. Moffatt, M.A., B.SC ............. Professor of Physical Science .......................... Madras, India
O. H. T. Dudley, M.A ....................... Inspector of European Schools ........................ Bombay, India
George MacKay ...... ::.^.. ................... Superintendent of Education .......................... Suva, Fiji
Mrs. A. McMurray....: ..................... Child Life Protection Society .......................... Cape Town, S.A.
Miss H. R. Anderson ........................ B.C. Teachers' Federation .............................. Vancouver
J. W. Barnett .................................... Alberta Teachers' Alliance .............................. Edmonton
Harry Charlesworth .......................... President, Canadian Teachers' Federation.. Victoria
W. S. Fox .......................................... Western University .......................................... London
H. W. Huntley .................................. Manitoba Teachers' Federation ...................... Winnipeg
Hon. S. J. Latta ................................ Saskatchewan Government ............................. Regina
M. R. Lynds .................................... N.B. Educational Institute .............................. Fredericton
Dr. A. H. MacKay .......................... Superintendent of Education .......................... Halifax
Dr. Geo. W. Parmallee .................... Deputy Minister of Education ........................ Quebec
Lt.-Col. T. E. Perrett, B.A., O.B.B... Principal, Provincial Normal School ............. Regina
Miss H. A. Coates ............................ Ex-President Natal Teachers' Society .......... Natal, S.A.
Peter Wright ...................................... Councillor, University of Wales .................. ....Cardiff
James Fairgrieve, M.A ....................... London Day Training College ........................ London
Prof. J. W. Scott, M.A ....................... University College of South Wales ................ Cardiff
M. J. Rendall, M.A ........................... Winchester College ............................................ Winchester
Tames Dudley. ................................... Bombay Education Service ............................ Bombay, India
T. W. Wells, M.A ............................... New Zealand Education Department ........... Auckland, N.Z.
J. W. Capes, M.A ............................... Headmaster of Royal Grammar School ........ Colchester
W. W. Blackall, B.A., D.C.I, ............. Superintendent of Education .......................... St. John's
Sir Harry R. Reichel ........................ Vice-Chancellor, University of Wales ............ Cardiff
Prof. S. G. Dunn .............................. Muir College ...................................................... Allahabad, India
J. H. Fowler, M.A ............................... Clifton College .................................................. Bristol
Prof. W. M. Bain .............................. University of Bristol ........................................ Bristol
C. R. Fay, M.A ................................... University of Cambridge .................................. Cambridge
Teachers were present from England, Wales, Scotland,
Africa, India, Australia, New Zealand, Fiji Islands, Hawaii, Cen-
tral America, the West Indies and Newfoundland with over 200
registered. The subjects under discussion were varied and wide
in scope and included (1) the standardizing of Teachers' Cer-
tificates and the interchange of teachers throughout the Empire ;
(2) further training of teachers already certified; (3) the study
of the Geography and History of the Empire ; (4) English lang-
uage and literature; (5) the distinguishing features of Educa-
tion; (6) the relation between Primary and Secondary Schools
226 THE CANADIAN ANNUAL REVIEW
in Canada ; (7) the relation of the High Schools and Collegiate
institutes to the Universities in Canada; (8) Agricultural edu-
cation in Canada ; (9) Vocational training and the corelation of
the work of the school with the activities of life — Rural and
Urban; (10) Civics and Education; (11) Health and Education.
Such detailed subjects as Domestic Science, Commercial work,
Home gardens, Continuation classes, etc., were also discussed.
In respect to the Imperial inter-change of teachers, it was
stated that 17 teachers from Canada were teaching in London
and that this year the number would be 100 and that the British
teachers taking their places were distributed all over Canada.
The Empire section of the discussion included the educational
work of the League of the Empire, the keeping of Empire Day
and other patriotic festivals, questions of immigration and set-
tlement, proposals as to establishment of a Teachers' residential
club in London, study of the educational systems of the Empire.
Some of the ideas expressed were that it was the University that
ultimately determined the character of the education of the
country; that Universities should have chairs of Imperial and
Colonial History and schools or chairs of Geography ; that, also,
they should have a recognized and authoritative work for the
guidance of teachers in Empire history ; that all certificates in
all parts of the Empire should be recognized by educational
authorities in other parts of the Empire ; that teachers in State
schools throughout the Empire should have their time counted,
when inter-changed, in all other schools throughout the Empire
both for previous service and in respect of salaries and super-
annuation.
Incidents of the Congress included a Dinner by the Toronto
Board of Education with John McClelland presiding, who stated
that Canada imported $11,000,000 of educational text-books and
periodicals from the United States and $113,000 from Great
Britain; addresses at various Sessions by Hon. R. S. Thornton,
Manitoba Minister of Education, President Bruce Taylor of
Queen's University, Dr. G. W. Parmalee of Quebec, Dr. J. H.
Putnam, Chief Inspector of Public Schools, Ottawa, Dr. A. H.
Mackay, Superintendent of Education in Nova Scotia ; the even-
ing meeting of Aug. 10, which was held in the Legislative
Chamber, Parliament Buildings, with the Headmaster of one of
England's historic public schools in the chair, with London, the
great mother city, and the Principality of Wales furnishing the
papers, with New Zealand, Africa and India following in the dis-
cussion and with every Province in Canada represented in the
audience ; the conferring of an Hon. LL.D. by the University of
Toronto upon Sir H. R. Reichel, Principal of University College
of North Wales, M. J. Rendall, B.A., Headmaster of Winchester
College, B. M. Allen, B.A., Deputy Education Officer, London
County Council, and Rev. A. Moffat, M.A., B.SC., F.R.S., etc., Pro-
fessor of Physical Science, Madras Christian College.
EMPIRE UNIVERSITIES AND IMPERIAL TEACHERS IN CONFERENCE 227
The Conference ended on Aug. 13 with every evidence of
good work done and results realized. The University of Toronto
had been generous in its hospitality and the setting for the meet-
ing was an ideal one ; the Provincial Government gave generous
support and the teachers of Toronto had given much help in de-
tail. As to the gathering itself, one who was present declared
that "the Canadians got many new ideas about education in Eng-
land, and many personal chats with English teachers clarified
their conceptions about English schools and school systems. The
Scottish teachers had a fine story to tell of recent progress in
their country. The Welsh group gave further contributions to
the general knowledge of progress in education." Socially, the
intercourse was genial, friendly, useful ; from an Imperial stand-
point it was fraternal, educative, at times inspiring. During or
following the meeting there were excursions to Niagara Falls, to
the Ontario Agricultural College at Guelph, through the great
fruit districts of Niagara, to the Muskoka Lakes in the High-
lands of Ontario, and to other points of interest.
The Rhodes Scholars of 1920-21. During 1921 the place and
influence of this educational institution increased somewhat in
importance. In the earlier stages it was claimed by critics that
the men chosen were not of sufficiently high quality, that
there were too many athletes and too few scholars, and that
the scholars did not accomplish anything noteworthy at Oxford.
If true at first this criticism latterly did not hold good. Early in
the year Prof. R. W. Burgess of Brown University, R.I., pub-
lished a statement as to the 8 groups of American scholars sent
to Oxford from 1904 to 1914, inclusive — about 300 men in all —
and was complimentary in his conclusions. The average of the
men was good and practically all took the Honour courses. As
to the Empire, the Scholarships had brought to Oxford a steady
stream of students from Canada, Australia and South Africa.
These students had held their own on the class lists of every
College, and more than held their own on the playing fields and
the river.
The effect of this influx of young men from the Dominions
upon Oxford itself was very great and obviously meant a widen-
ing of the mental horizon of British-born students. Oxford, in
fact, became a great meeting place of the youth of the Empire.
Canadian Universities continued to take keen interest in the
matter and a very fine type of student went over in later years.
There was a temporary increase in the stipends at this time from
£300 to £350; a little later a change was effected in the constitu-
tion of Committees of selection for Rhodes scholars. Hitherto
the local Selection Committees in Canada and other British Do-
minions and the United States were composed of leading citizens
in educational, professional and business life ; henceforth these
Committees were to consist almost exclusively of ex-Rhodes
scholars. This change was the result of conclusions reached by
228
THE CANADIAN ANNUAL REVIEW
Sir George R. Parkin, Chairman of the Rhodes Trust, after visits
to Canada and the United States prior to his retirement in 1920.
In making appointments Committees were instructed to
regard the qualities originally mentioned by Mr. Rhodes as to
(1) force of character, devotion to duty, courage, sympathy,
capacity for leadership ; (2) ability and scholastic attainments ;
(3) physical vigour as shown by participation in games or other
ways. Following were the Canadian conditions of eligibility:
(1) Candidates must be British subjects with at least 5 years'
domicile in Canada and be unmarried — they must have passed
their 19th but not their 25th birthday on Oct. 1st of the year for
which they were elected ; (2) candidates must be at least in their
sophomore year at some recognized University of Canada grant-
ing degrees and, if elected, complete the work of that year be-
fore coming into residence at Oxford; (3) candidates could com-
pete either in the Province in which they had their ordinary priv-
ate domicile or in the province in which they had acquired any
considerable part of their educational qualification.' It may be
added that the Rhodes' Trust statement for the year 1920-21
showed that 120 Rhodes scholars took up their scholarships at
Oxford for the first time during the year. The number actually
in residence for either the whole or some part of the year was
277, including 148 from the British Empire and 129 from the
United States of America. The academic year, 1921-22, began
with 295 Rhodes scholars in residence, together with seven ex-
Scholars. The following were the Canadian selections in 1921 :
Quebec
Alberta
Nova Scotia
Ontario
New Brunswick.
Manitoba
British Columbia
Saskatchewan
...Lawrence H. Armstrong McGill University
...Perry Hamilton Alberta University
...John Alex. Dunlop Dalhousie University
..John Lowe, B.A Toronto University
..Joseph W. Sears. University of New Brunswick
..Graham Spry University of Manitoba
..Lester W. McLennan University of British Columbia
..Kenneth A. Hamilton University of Saskatchewan
The Empire
Veterans'
Conference
of 1921 and
Other Im-
perial
Meetings
The first Conference of British Empire War
Veterans, or erx-Service men, was held in this year
at Cape Town, South Africa ; it opened on Feb. 23
with delegates present from all parts of the Empire
and F. M. Earl Haig as the most notable guest and
speaker. At the Convention 10 important Associa-
tions of returned soldiers were represented as fol-
lows : League of Comrades, South Africa ; League
of Returned Soldiers and Sailors, Transvaal; Officers' Associa-
tion, United Kingdom and South Africa ; Comrades of the Great
War, United Kingdom ; Returned Soldiers' and Sailors' Imperial
League, Australia; G. W. V. A. and Army and Navy Veterans,
Canada; Comrades of the Great War, Rhodesia; Returned
Soldiers' Association, New Zealand. R. B. Maxwell, President
of the Great War Veterans' Association, and T. Morgan of the
Army and Navy Veterans of Canada, were the Canadian repre-
sentatives.
EMPIRE VETERANS' CONFERENCE; OTHER EMPIRE MEETINGS 229
Amongst the countries represented were Rhodesia, Trans-
vaal, New Zealand, Australia, South African Union, Canada,
Natal and Great Britain ; General Sir H. T. Lukin was Chairman
and, in addition to Lord Haig, there were speeches from General
Smuts, Premier of South Africa, Sir Frederic de Waal, Admini-
strator of the Cape Province, and W. C. Gardiner, Mayor of
Cape Town. General Smuts made the following statement to the
Conference : "Here we have a Prime Minister who is a returned
soldier, a Minister of Finance, who is a returned soldier. Most
of the officials of the South African Government who deal with
questions affecting returned soldiers, are themselves returned
soldiers. Therefore, it is only to be expected that a feeling of
sympathy, a spirit of comradeship, should exist between Govern-
mental authorities and the soldiers all through South Africa."
In his speech, Lord Haig reviewed the deeds of South African
soldiers in the World- War and stated that this Conference was
the first open acknowledgment of the bond that united all who
served the Empire in that struggle, and was the first step in the
formation of an Empire League which would link all ex-Service
men together, preserve amongst them the spirit of comradeship
and guarantee the maintenance of the high ideals for which they
had all fought.
The chief subjects of discussion were (1) consideration of
the best means for helping the returned soldier and sailor; (2)
measures to bring about a closer union of ex-Service men's
Associations in the Empire; (3) to advise ways and means of
continuing the bonds of Comradeship which were established
through and by the War. One of the chief things done was the
organization of the British Empire Service League with H.R.H.
the Prince of Wales as Patron and F. M. Lord Haig as the first
Grand President ; the next Conference was arranged for Aus-
tralia in 1923. The Resolutions passed included (1) a declara-
tion that the Conference viewed with alarm and concern the large
number of unemployed soldiers in various parts of the Empire,
and called for immediate fulfilment of the pledges given to the
men serving during the War; (2) the hope that unemployment
of ex-Service men would be earnestly considered by the Imperial
Conference; (3) the statement that "the Dominions represented
at this Conference welcome the immigration of ex-Service men
from the Mother Country, but are opposed to unregulated im-
migration." The Conference went on record as opposed to war
in principle but as in favour of adequate defence arrangements
for the British Empire ; the League of Nations also was en-
dorsed.
Following the Conference R. B. Maxwell of the G. W. V. A.
of Canada made a 10-day tour in South Africa addressing local
bodies of returned men and explaining to them the operation of
Veterans' legislation regarding pensions, etc., in Canada. On his
return to Ottawa Mr. Maxwell told the local press that the new
League should be one of the strongest moral forces in the world.
230 THE CANADIAN ANNUAL REVIEW
At the following annual Convention of the G. W. V. A. at Port
Arthur (Oct. 20) it was decided to join the League and, as a
preliminary, to try and federate all Service organizations in
Canada. Speaking of the Conference and the League on his re-
turn to England, Lord Haig told The Times (May 27) that : "The
Conference was brought about on the initiative of the rank and
file. That is the wonderful point and throughout the meeting
there was not one discordant note. All the decisions were ar-
rived at unanimously, x x x The one stable element through-
out the Empire is the ex-Service man — the man who gave his all
and suffered more than anyone else, and who fought simply for
his country and for freedom. To-day throughout the Empire
you have a stable element represented by the British Empire
Service League. I think that is going to count for a great deal
in the future to the many peoples who go to make up the British
Empire." There was a State-Aided Empire Settlement Confer-
ence held in London during January and February at which
Canada was represented by Sir George Perley and J. Obed
Smith, Dominion Immigration Commissioner. Elaborate pro-
posals were considered and approved' for presentation to the
Imperial Conference of 1921 with the following bases :
1. His Majesty's Government to co-operate with the Oversea Gov-
ernments in a comprehensive policy of Empire land settlement, and Em-
pire-directed migration, extending over a period of years, and to this end
to contribute up to a maximum of £2,000,000 a year, in any year, in re-
spect of schemes of land settlement, assisted passages, and such other
kindred schemes as may commend themselves to the Governments con-
cerned.
2. The assistance to land settlement to take the form of advances
to settlers up to a maximum of £300 a settler, the advances to be made
through the Oversea Governments concerned or through specially ap-
proved private organizations, and repayments collected by them.
3. His Majesty's Government to assign normally about half its total
contribution, viz.: about £1,000,000, to land settlement— the amount for the
financial years 1921-22 and 1922-23 probably not exceeding £750,000.
4. His Majesty's Government to assign the balance of its contribu-
tion to assisted passages, including, if necessary, outfit and landing money
allowances.
5. If any Dominion would prefer, in lieu of a joint contribution to
assist passages, some alternative scheme for the assistance of settlers
generally or for land settlement, His Majesty's Government to consider
the allocation to such scheme of the amount it would otherwise have
contributed to assisted passages in respect of settlers proceeding to that
Dominion.
6. All settlers receiving assistance under any of the above schemes
to be subject to selection and approval by His Majesty's Government
and by the Government of the Dominion concerned. Preference to be
given, as far as may be possible, to ex-Service men.
7. As a part of this general scheme of co-operation, the Dominion
Governments to make special arrangements for the reception, distribu-
tion, and initial supervision of British settlers who should, as far as con-
ditions permit, be given preferential treatment over foreign immigrants.
The Imperial Conference passed a Resolution declaring these
proposals sound in principle. Steps were taken during the year
to carry on the work of the Imperial Forestry Conference of
EMPIRE VETERANS' CONFERENCE; OTHER EMPIRE MEETINGS 231
1920 by the establishment and incorporation by Royal Charter
of the fempire Forestry Association. The objects of the Associa-
tion were defined as (a) to foster public interest in Forestry
throughout the Empire; (b) to secure general recognition of
the dependence of timber supply upon Forest management; (c)
to collect and circulate information relating to Forestry and the
commercial utilization of forest products; (d) to form a centre
for Forest officers and all engaged in Forestry, and (e) to pro-
vide a means of communication between all concerned. The
affairs of the Association were to be directed by a Governing
Council and an Executive Committee, the latter composed of
representatives of the United Kingdom, Australia, Canada, New-
foundland, New Zealand, South Africa, India and the Crown
Colonies and Protectorates. The Chairman of the Governing
Council and the Executive Committee was Viscount Novar (Sir
R. Munro-Ferguson) lately Governor-General of Australia, and
the members of the Executive Committee included H. E. the
Duke of Devonshire and Robson Black, Secretary of the Cana-
dian Forestry Association for Canada, and Sir Mayson Beeton
for Newfoundland.
Another gathering of interest was the Anglo-American
Conference of Professors of History, in London on July 11-17,
with Great Britain, Canada, and the United States represented.
The meetings were held in the Institute of Historical Research
recently founded by the University of London, under whose
auspices, and by whose invitation, the Conference was held.
Canadian Universities sent Professors J. L. Morison and A. E.
Prince of Queen's University and Prof. R. Flenley of the Uni-
versity of Toronto; all the chief British universities were rep-
resented and amongst the Americans were Yale, Columbia, Wis-
consin, etc. The general aim was to secure, if possible, better
contact and increased co-ordination of effort between historical
scholars and University teachers on this continent and in Great
Britain. The opening address was by Rt. Hon. H. A. L. Fisher,
Minister of Education, and a notable visitor was Cardinal
Gasquet from Rome. The Conference, itself, bore witness to
the desire for such co-operation and its benefits ; an obvious
advantage was the informal meeting and exchange of views by
Professors of History from so many widely-scattered Universi-
ties. A joint Anglo-American Committee was appointed before
the end of the Conference to try and translate into effect the
general desire for closer co-operation in the study of identical
or kindred subjects in Britain, Canada, the Empire generally,
and the United States — whether it might be United States or
Imperial history, Naval, Military, or Diplomatic records. There
was a general recognition of the inter-dependence of historical
scholarship in practically all fields of historical work, and of the
common service rendered by publications of such institutions as
the British Record Office, the Carnegie Institute at Washington,
and the Dominion Archives in Ottawa.
232 THE CANADIAN ANNUAL REVIEW
This question was academically discussed in
Appeal, to 1920 and 1921— though not in any wide or popular
the Privy degree. The leading barristers and lawyers were
Council; m favour of maintaining the Appeal ; most of those
Argument* termed Imperialists were inclined to consider it as
AgaTn.t an important link in Empire connection; Quebec
Abolition. and its public men supported it because the appeal
was regarded as an element of protection to Pro-
vincial rights; there was a section of the press and politicians
who urged its abrogation along alleged lines of National right
and full self-government. The Ontario Bar Association (1920)
declared in favour of its maintenance as did Horace J. Gagne,
K.C., who represented the Bar of Quebec at this meeting, and the
Montreal Gazette strongly backed up the contention; Sir Allen
Aylesworth, Hon. W. R. Riddell and Mr. Justice A. C. Gait were
of the same view as were the Canada Law Journal and the Cana-
dian Law Times. On the other side were John S. Ewart, K.C.,
and Hon. W. E. Raney, Attorney-General of Ontario ; the latter
in his speech proposing abolition of the appeal in Ontario, quoted
Eugene Lafleur, K.C., and Aime Geoffrion, K.C., leaders of the
Quebec bar, as in favour of his viewpoint. Mr. Raney presented
to the Legislature, in 1920, but afterwards withdrew, a Bill of
which the chief clause was as follows :
Notwithstanding any Royal prerogative or anything contained in
the Interpretation Act or any other Act, no appeal shall lie from any
judgment, decision or order of the Supreme Court of Ontario, or of any
other Court, or of any person, board, Commission or body, exercising
Judicial authority, in any action or other proceeding brought, had, or
taken in, as before any such Court, person, Board, Commission or body,
to any Court of appeal or authority by which, in the United Kingdom,
appeals or petitions to His Majesty-in-Council may be heard, and the
authority of the Judicial Committee of His Majesty's Privy Council to
grant leave to an appeal from any such judgment, decision or order and
the prerogative of His Majesty to hear such appeals are hereby abro-
gated.
The right to abrogate the King's prerogative was said by
legal journals to be a rather extreme assumption for a Provin-
cial Legislature ; there was a good deal of legal opposition to the
Bill, led by J. Murray Clark, K.C., and, for the time being, it was
withdrawn. During the discussion a statement by Sir Allen
Aylesworth, when Dominion Minister of Justice, was quoted:
"The appeal to the Judicial Committee rests on prerogative. It
is literally and in essence a petition and appeal to the Throne
itself. Under our system the King is not only the fountain of
justice, but literally the head of the judicial system. Judges in
Canada, as much as anywhere else in the British Empire, are the
King's judges, the King's delegates, substitutes to do for him
the judicial work which it is impossible that the King, as head of
the State, could perform." The Toronto Globe, the Farmer's Sun,
the Manitoba Free Press, Lindsay Crawford's Statesman, urged
abolition of the Appeal at this time.
THE QUESTION OF APPEALS TO THE PRIVY COUNCIL 233
The Attorney-General of Ontario (Mr. Raney) in propos-
ing abolition of Provincial appeals to the Judicial Committee,
wanted, however, a reconstitution of the Privy Council into a
sort of Court of British Nations — though details of the plan were
not given; W. L. Grant, M.A., Headmaster of Upper Canada,
expressed opposition to the Appeal system early in 1921 ; the
Manitoba Free Press of Sept. 12 declared that "the elucidation of
Canadian-made law by Canadian judges, the interpretation of
Canadian contracts by Canadian courts — the propriety of this is
now so obvious that we may look for a limitation of appeals, per-
haps, by the voluntary action of the Judicial Committee itself."
Prof. G. M. Wrong of Toronto University (Dec. 11) expressed
his belief that sooner or later appeal to the Privy Council would
go and Canadian courts would deliver final judgment in all mat-
ters ; he believed, however, that in the past the Privy Council
appeal had served a purpose beneficial to Canada.
On the other hand the Montreal Journal of Commerce (of
which Hon. W. S. Fielding was Editor-in-Chief) declared on Feb.
1st, 1921, that "there is no widespread dissatisfaction, and cer-
tainly not sufficient ground to justify any urgent demand for the
abolition of the appeal to London." Edward Anderson, K.C.,
President of the Manitoba Bar Association, stated on Feb. 11
in the Toronto Financial Post that: "We, as Canadians, are
proud of the fact that the source and inspiration of our laws is
England. What then can be the objection of submitting, if we
choose to do so, our important disputes to that Court for final
adjudication? There is much to be said in favour of placing a
reasonable limit to the right of appeal. It may well be that the
right is too wide, and that only cases involving large amounts,
or very important principles, should be taken there. That, how-
ever, is quite a different matter from abolishing the right. The
fact should not be lost sight of that the Privy Council is a court
of last resort for all parts of the Empire, that it is in no sense an
English Court of Appeal, (English, Scotch and Irish appeals go
to the House of Lords), and that Canada is represented on the
Judicial Committee of the Privy Council."
Following the important decision in the Despatie-Tremblay
marriage case the Montreal Star (Feb. 16) pointed out that the
reception accorded this decision, in a case involving acutely con-
troversial religious, and Provincial and National issues, could
hardly have been paralleled had that case been decided by a
Canadian tribunal : "Without any loss of respect for the Bench
in Canada, we can realize the impossibility of securing within
our boundaries the same assurance of detached impartiality as
remains available in the Privy Council. Indeed, it is apparent
that one of the concrete advantages in Canada's partnership in
the British Empire is this right to have legal deadlocks un-
ravelled under circumstances calculated to give the widest
measure of confidence." Following the statement in a Toronto
speech (June 9) by Hon. L. A. Taschereau, Premier of Quebec,
234 THE CANADIAN ANNUAL REVIEW
as to the value of this Appeal system to Canadians, the Star en-
larged upon the point on June 10: "It (the Privy Council) is a
priceless safety-valve when super-heated sectional passion gets
up a dangerous head of steam on both sides and every Canadian
—no matter how highly placed — is 'suspect' as being allied to
one party or the other."
Prof. W. F. Osborne, M.A., of Manitoba University, put the
matter as follows on Apr. 3rd: "Cutting off the appeal to the
Privy Council, on Canada's own initiative without consulting the
other Dominions, would be a blow to the principle of comrade-
ship and solidarity which is essential for the maintenance of the
British Empire." The whole situation was reviewed by Lord
Birkenhead, British Lord Chancellor, at a London dinner on Feb.
14. He pointed out that in the last two years he had been con-
cerned in many important Canadian appeals to the Judicial Com-
mittee ; he testified to the high judicial qualifications of Mr.
Justice L. P. Duff of Canada as having been a source of extra-
ordinary strength to the tribunal. Continuing, the Lord Chan-
cellor said: "You know a great variety of judicial affairs are
discharged by that Committee in an unpretentious room in
Downing Street. We try questions from South Africa which are
determined by the common Dutch law which still retains so
many of its variations upon the Roman law. We deal with Cana-
dian appeals bearing on the construction of the Code Napoleon
and making it necessary to explore the whole atmosphere with
which French law is encrusted. And we deal with that vast
congeries of legal interpretations which is described as the law
of India." As to the rest: "I hope that this jurisdiction, safe-
guarded in any way that may be desired, will survive. I desire
it for the reason that the great Dominion, with an illimitable
and incalculable future should still be associated at its very
heart with the foundations of our common law from which it
has drawn so much of its present strength."
This question during 1921 was accentuated by
The British the pending exclusion of Canadian cattle from
bar*" l7s™e- United States markets ; in Great Britain it was a
Report of*' difficult one to deal with as removal in the case of
the British Canada would be a precedent leading to demands
Royal Com- from many other countries. While the Canadian
mission. farmer — particularly in the West — earnestly desir-
ed removal of the Embargo the British Govern-
ment had to consider the sometimes conflicting interests of its
own farmers, graziers, meat-traders, shippers and consumers.
Opponents of removal in Great Britain claimed that (1) Cana-
dian cattle could contract disease on their long and exhaustive
journey to British farms; (2) open ports to Canadian cattle
would stimulate imports of cattle from Canada through the
United States, which was not immune from foot and mouth and
other diseases, and where the varying administration of these
matters by many States made effective regulation a most difficult
BRITISH CATTLE EMBARGO; REPORT OF A ROYAL COMMISSION 235
affair; (3) diplomatically, it would be most awkward to open
ports to one country and close them to others, for instance, the
United States and countries of Northern Europe where disease
was rampant; (4) the number of live cattle which Canada offer-
ed was about 3 per cent, of Britain's total requirements and it
would, at best, and for years to come, be a very small addition
to existing British supplies; (5) the effect might be to impede
British home production and actually help its meat supplies to
fall into the hands of foreign trusts.
It had been pretty well admitted by this time that the Em-
bargo was not retained because of disease in Canadian cattle.
Mr. Prothero (afterwards Lord Ernie) as President of the
Board of Agriculture, admitted this at the Imperial Conference
on Apr. 26, 1917; The Times of July 28, 1919, stated that the
Board had decided that "the bar to the importation of Canadian
store cattle can no longer be maintained on the ground of
health" ; on Jan. 12, 1921, Lord Lee of Fareham, as Minister of
Agriculture, stated to a Deputation that "the Ministry had pub-
licly endorsed the clean bill of health to which Canadian cattle
were entitled." But he added : "So far as the representations to
the Ministry from responsible agricultural bodies are concerned,
the agricultural interest of England and Wales is overwhelm-
ingly against the removal of the Embargo ; the Agricultural Ad-
visory Committee of England and Wales, a statutory body ap-
pointed to advise the Minister, has unanimously passed a Reso-
lution urging that no alteration be made in existing legislation —
which prohibits the importation of live animals into this country
except for slaughter at the ports." At this time, also, the Na-
tional Executive of the Irish Farmers' Union passed a similar
Resolution.
Shortly afterwards Lord Lee resigned and his successor,
Sir A. Griffith-Boscawen, expressed the same views and, in his
bye-election at Dudley, the question was made a distinct issue ;
Lord Beaverbrook and his journals took up the matter and
fought the new Minister vigorously with "cheap meat" as the
slogan; on Mch. 3rd, 1921, the Labour candidate was elected
over the Minister by 10,244 to 9,968. On Mch. 8 Mr. Doherty,
Ontario Minister of Agriculture, spoke at a London meeting
with Lord Beaverbrook, James Wilson, the new M.P. for Dudley,
and Arthur Henderson, the Labour leader, against the Embargo
and the Government's policy. Meantime, the Lord Mayor of
London had called a National Conference to consider the ques-
tion and it was held at the Guildhall on Mch. 9; a Resolution in
favour of removing the Embargo was presented, supported by
Hon. Manning Doherty, opposed by the Marquess of Crewe and
Colonel Pretyman, M.P., and carried by a large majority.
On May 2nd it was announced in the British Commons that
a Royal Commission on the Importation of Store Cattle had been
appointed and that the following were to be members : Lord
Finlay (Chairman), Lord Chancellor in 1916-18; Lord Askwith,
236 THE CANADIAN ANNUAL REVIEW
Chief Industrial Commissioner 1911-19; Sir Algernon Firth,
President of the United Kingdom Chambers of Commerce in
1912-18; Sir Harry Peat, a Chartered Accountant, and Sir
Arthur Shipley, Vice-Chancellor of Cambridge University. The
terms of reference were as follows: "To enquire into the ad-
mission into the United Kingdom of live-stock for purposes
other than immediate slaughter at the ports; whether such ac-
tion would increase and cheapen the meat supply of the country
and, if so, to what extent; and whether it is advisable, having
regard to the necessity of protecting live-stock bred in the
country from the introduction of disease, and of restoring their
numbers after the losses to which they were subjected during
the War."
Amongst the witnesses during the next three months were
Sir Daniel Hall, Chief Scientific adviser to the Department of
Agriculture, who opposed removal of the Embargo and would
not admit that Lord Ernie had given any definite pledge in that
respect; Sir Robert Greig, Commissioner of the Board of Agri-
culture in Scotland, who held that the balance of advantage was
in favour of the importation of store cattle ; Hon. Duncan Mar-
shall, Minister of Agriculture, Alberta, and Hon. Manning
Doherty, Minister of Agriculture, Ontario, who urged the abro-
gation and presented Canadian reasons — chiefly that of health —
for this action ; Hon. Dr. Tolmie, Dominion Minister of Agricul-
ture, who quoted considerations of economic advantage to Great
Britain in an increased Canadian output and shipment, a larger
and cheaper supply of home-killed beef, the provision of more
work for British labour, an increased domestic supply of leather,
a larger supply of the cheaper meats, an increased demand from
Canada for pure-bred stock ; Lord Morris of Newfoundland, who
urged abrogation as an aid to Empire development and J. B.
Guild, who opposed removal of the Embargo on the ground that
it would give greater power to United States meat trusts
through the dumping of Canadian cattle in England ; Lord Ernie
who defended his 1917 utterance as made because of the possible
continuance of the Submarine menace; the Duke of Westmin-
ster, who supported abrogation because of a greater probable
trade in pedigree cattle, a clean bill of health in Canada and
mutual betterment; Lord Chaplin, one-time Minister of Agri-
culture, who declared that removal of the Embargo would be a
serious disaster to British breeding and to the home cattle in-
dustry.
The Report of the Commission was made public on Sept. 15.
It had sat from May 30 to July 6 with 25 sittings and the ex-
amination of 92 witnesses. The Report stated that all ports of
Ireland had wired disapproval of any change in the Embargo;
that 200,000 head, or about 8 per cent, of the total import, would
be the probable measure of supply from Canada ; that, upon
the whole, this importation might effect a slight reduction in
the price of meat. The Commission referred to the "very
BRITISH CATTLE EMBARGO; REPORT OF A ROYAL COMMISSION 237
clear and able statement" of Hon. Dr. Tolmie and declared
that on the question of the withdrawal, in 1892, of permission
to import live Canadian cattel there seemed to be every
reason to believe that those examined were not suffering
from pleuro-pneumonia at all, but from some affection with
similar symptoms : "It is further established in our opinion that
for the last 30 years no cattle plague disease has existed in
Canada. We had a great deal of evidence concerning the health
of Canadian cattle. In our opinion it is established that they are
healthier than the Irish cattle and indeed healthier than the
British cattle." Other conclusions were as follows :
1. That the importation of Canadian stores would tend to satisfy in
some measure the increasing demand for fresh home-fed meat.
2. That such admission is advisable, as providing another source
for supply of stores (store cattle) for the purpose of scientific agricul-
ture, with a consequent increase of the food supply.
3. That there is no substantial ground for the apprehension that
such admission would introduce disease among the cattle in this country.
4. That such admission would not interfere with, but would tend to
promote the restoration and, indeed, the increase of the numbers of live-
stock in this country after any losses sustained during or since the War.
5. That the introduction of Canadian cattle would not have any
prejudicial effect upon the milk supply of this country, but would, on
the contrary, tend to its advantage.
6. That there is a general feeling among English farmers against
the admission of Canadian stores. So far as this is created by the ap-
prehension that disease may be thereby introduced, we consider it un-
founded.
7. That the admission of Canadian stores might make it difficult for
crofters and small farmers in the Highlands to carry on their farming
operations successfully owing to competition with them in the market for
the sale of stores.
8. That the admission of Canadian stores might to some extent
deprive the Irish farmers of the market which they at present enjoy in
Great Britain for their stores.
On Nov. 14, following, a Delegation waited upon the British
Minister of Agriculture and urged removal of the Embargo.
Sir A. Griffith-Boscawen pointed out that legislation was neces-
sary to effect such action and the Irish question at this moment
left no time for new policies ; there was also extensive opposi-
tion against such action ; he would present the whole matter im-
partially to the Cabinet. Speaking on Dec. 1st the Minister
stated that he was, personally, opposed to removal of the Em-
bargo against Canada and other countries : "What is the good of
my scheme for improving the quality of stock if foreign cattle
can be imported without test or guarantee." On Nov. 22 the
Council of Agriculture for England, by 49 to 11, urged the Gov-
ernment to retain the Embargo.
Meanwhile there had been continuous discussion of the
matter in Canada. The three Ministers who visited England
were outspoken in Canada upon the subject; the Export trade
in Canadian cattle was almost wholly with the United States —
in 1919 it was 500,216 head to the United States out of a total
of 515,525 and, in 1920, 308,562 head out of 311,496— and it was
238 THE CANADIAN ANNUAL REVIEW
menaced by the United States legislation which later became
law ; Mr. Marshall of Alberta pointed out in the Farmer's Sun of
Jan. 15 that it would not pay the Canadian farmer to fatten his
steers at home when he had no market after they were so fitted,
except the Canadian packer who bought on a speculative chance
of selling chilled beef in Britain. At the Dominion Shorthorn
Breeders' meeting in Toronto on Feb. 8 a Resolution strongly
urged the Dominion Government to make every effort for the
removal of the British Embargo ; in the Ontario Legislature on
Feb. 25 there was a vigorous attack by Liberal and Conservative
speakers upon the Minister of Agriculture for his proposed visit
to England and intervention, as they put it, in British politics,
with Mr. Premier Dairy's reply that an alternative market was
becoming essential; the Quebec Legislative Assembly unani-
mously endorsed the demand for repeal of the Embargo as did
that of Manitoba.
In the Commons on Mch. 9 and 11 a discussion took place,
on motion of William Smith, declaring that: "It would not be
in the best interests of Canada should the Government of Great
Britain remove the Embargo upon cattle going into the United
Kingdom." He pointed out that the Embargo imposed by Great
Britain included cattle from all other countries as well as
Canada, and was put on for the purpose of satisfying, particu-
larly, the Irish people who sent 924,000 cattle across the channel
to England, at a value of £30,000,000." He believed that Canada
should feed and slaughter its own cattle : "The Government
should build an abattoir at Halifax, which is, perhaps, 24 hours
nearer Great Britain than any other Canadian port; our cattle
could be slaughtered there and the meat should be chilled, not
frozen, and sent across, x x x Our cattle would then be fed in
Canada ; it would be our grass, our corn, our grain, and our
labour." The debate covered a wide range and included many
speakers ; there was great objection expressed to interference
in British politics.
Finally an amendment by Dr. Steele was carried unanimous-
ly as follows: "This House approves and supports the policy
of the Government and of previous Governments of Canada in
protesting against the implication of disease in Canadian cattle
by reason of the maintenance of the Embargo thereon by the
British Government." During this month the Stock Growers'
Association of Western Canada issued a statement in which it
was alleged to be useless to fatten cattle under present condi-
tions and export them for immediate slaughter; that the finish-
ing of cattle was a business belonging to a developed country,
and not one in the early stages; that there were not men in
Western Canada, in sufficiently large numbers, who understood
cattle-feeding and were equipped for doing that kind of work.
Feeder cattle, originating in Western Canada, would, it was
claimed, be able to endure the hardships of the long journey
BRITISH CATTLE EMBARGO; REPORT OF A ROYAL COMMISSION 239
with much less deterioration and shrinkage than would stall-fed
animals.
Meantime the Dominion Government had taken exception
to the action of the Ontario Government in sending Mr. Doherty
to England in this connection. Mr. Drury contended that his
Minister's action, late in 1920, had been effective in stirring up
a movement in England against the Embargo and warranted his
further visit and renewed activities. Mr. Premier Meighen re-
sponded (Jan. 15) that: "It seems to me scarcely a proper
function on our part to initiate or engage in propaganda work
among the British people in opposition to the course pursued by
the British Government. Similar activity in Canada on the part
of the British authorities would, I fear, be universally resented
here." In any case, he claimed, the request for removal had
always come from the Federal authorities ; it was their sphere
and was not a Provincial one. As to this Mr. Doherty declared
(Farmer's Sun May 14) that as a result of his action : "The Em-
bargo has received more public and private discussion and con-
sideration in the British Isles in the last four months than in
the previous 20 years. The British Government has taken of-
ficial cognizance of this public interest by the appointment of a
Commission and has, moreover, given the subject a prominent
place on the agenda of the approaching Imperial Conference."
Mr. Marshall, the Alberta Minister, went to England to try
and help, along these lines, and told the Toronto Globe on May 23
that Great Britain was the best cattle market in the world and
a change in its policy would solve the current cattle difficulties
of his Province. On his return Mr. Marshall told the Edmonton
Bulletin of July 4 that more Canadian witnesses would have
been welcomed and should have been heard before the Royal
Commission. During the year there were various arguments
used to show that Canada would do well to feed its own cattle at
home ; Pat Burns of Calgary, the largest and most successful
cattle-man in Canada, as well as a meat-packer, with all his 30
years' experience, opposed the removal of the Embargo and de-
clared the whole matter to be a transportation question; sug-
gestions were made that the Canadian Merchant Marine should
equip two of its ships to carry chilled meat to Great Britain and
thus get two pence per pound more than frozen beef. Harry
Talbot, President of the Canadian Live Stock Exchange, with
markets organized at Montreal, Toronto, Winnipeg, Calgary
and Edmonton, stated on June 29 that: "Admittance of Cana-
dian stock cattle to the United States market never did our
breeders any good. Our cattle should be finished in Canada and
what we should encourage is a feeding industry." On the other
hand E. W. Beatty, of the C. P. R., stated at Calgary on Sept. 26
that, if the privilege of finishing Canadian cattle in Great Britain
were accorded, Canadian cattle would be in a better position to
compete with British and Irish fresh meats.
240 THE CANADIAN ANNUAL REVIEW
There were many incidents during the year
War Echoes reminiscent of the World-War. Speaking in To-
of 1921; ronto on Jan. 31 Major-General J. Lyons Biggar,
M™orS« C.M.G., stated that the Quartermaster-General's De-
to the Dead, partment during the War handled, for the troops
before going Overseas, 4,000 carloads of beef, 90,-
000,000 pounds of flour, 12,000 tons of butter and a million bags
of potatoes ; that the total cost of rail transportation in Canada
in sending men overseas was $26,000,000 and the number of men
carried by the railroads was 1,570,000; that the Canadian Pacific
liners carried 264,000 men across the ocean, the White Star
225,000 and the Cunard and Donaldson lines 300,000; that the
total cost of the sea transportation was $36,000,000. The un-
veiling of a Memorial plaque in London, England, to Colonel
E. F. Harrison as the inventor of the small-box respirator which
was so effective in protecting British troops from the effects of
German gas evoked the claim from Canada that it was a Cana-
dian, Lieut.-Col. G. G. Nasmith, C.M.G., who invented the pioneer
gas-mask after the Battle of St. Julien, at which he saw the
effects of the gas, and who, also, first recognized the German gas
as chlorine; Col. Harrison improved and perfected the Nasmith
work.
The Report of the Canadian Patriotic Fund, submitted at
Ottawa on May 6, showed that it still had $6,100,000 on hand;
that it was giving monthly assistance to 854 families ; that since
the inauguration of the Fund in August, 1914, $41,000,000 had
been distributed with about $150,000 monthly now being paid
out. At the same time the Report of the Toronto and York
County Patriotic Association showed that from August, 1914, to
January, 1921, the Association had collected $8,939,143, had dis-
bursed the sum of $8,491,884 and had a balance on hand of
$441,259. The final official figures of British Empire enlistments
in the War, as submitted to the British Parliament early in 1921,
were as follows:
Enlistments
County All Ranks Deaths Wounded
Great Britain and Ireland 6,211,427 743,702 1,693,262
Canada 683,170 56,625 149,732
Australia 413,453 59,330 152,171
New Zealand 227,325 16,136 40,729
South Africa ) 136,373
Newfoundland ^ 9,869 8,832 15,153
Other Colonies J 135,337
India 1,679,416 61,398 70,859
Total 9,496,370 946,023 2,121,906
It was officially stated at this time that War Trophies, in-
cluding guns, machine guns and trench mortars, had been dis-
tributed by the Imperial authorities in the following numbers:
Canada, 3,650; Australia, 4,508; New Zealand, 1,706; India, 549;
South Africa, 421 ; Newfoundland, 84. Meantime, much im-
portant work had been done in 1919 and 1920 and continued dur-
ing 1921 by the Imperial War Graves Commission. In this body
WAR ECHOES IN 1921 ; CANADIAN MEMORIALS TO THE DEAD 241
the various Dominions each had a Section, and the High Com-
missioner was Canada's representative with, latterly, Lieut.-Col.
H. C. Osborne, C.M.G., as the Secretary in Canada. The Com-
mission was under control of the British War Office. Under the
auspices of this organization, Mr. Meighen, Premier of Canada,
visited Vimy Ridge on July 2nd and unveiled a beautiful Me-
morial Cross in honour of Canadians buried in the local War
Cemetery. The work of the Commission was a silent one but
none the less significant and effective. At Bramshott and other
places in England, handsome Memorial Crosses were erected by
it in memory of Canadians.
In Canada the Canadian Battlefields Memorial Commission
had been appointed late in 1920 to oversee the official erection
of Canadian Memorials in France and Belgium. The Commis-
sioners were Hon. S. C. Mewburn, C.M.G. (Chairman), and Hon.
R. Lemieux, Lieut.-Gen. Sir R. E. W. Turner, v.c., Lieut.-Col.
R. W. Leonard and the Hon. J. G. Turriff. The Order-in-Council
appointing the Commission set forth that the sum of $250,000
had been appropriated at the last session of Parliament and
that Brig.-Gen. H. T. Hughes and other officers were appointed
to take charge of the necessary preliminary work. Eight sites
for the erection of Memorials had been obtained by the Govern-
ment, and the work of building suitable roads to some of these
places, which were off the main highway, had been gone into.
In this connection 160 designs for these Memorials, in a com-
petition open to all Canadian architects, sculptors and other
artists, were submitted in 1921 to three Judges appointed by the
Federal Government; C. H. Reilly, Liverpool, nominated by the
Royal Institute of British Architects; Prof. Paul Cret, Paris,
nominated by the Societe Centrale des Architects, and Frank
Darling, nominated by the Royal Architectural Institute of
Canada. Percy E. Nobbs, M.A., R.C.A., represented the Canadian
Government. The aim of the Commission including these gen-
tlemen was the erection of a series of monuments having a
cumulative effect due to similarity in scale and general form of
landmarks. Each monument should, it was stated, be individual
in character as to its base and the composition of its immediate
precincts. These eight monuments were to cost $120,000 each,
and the sites selected were as follows : St. Julien, Passchendaele,
Observatory Ridge, Vimy Ridge, Dury Crossroads (Arras-Cam-
brai), Bourlon Wood, Courcelette, Hospital Wood (near
Amiens). Of the designs 17 were selected for serious considera-
tion; eventually that of Walter S. Allward, Toronto, was ap-
proved.
Incidents in this connection included the formal presenta-
tion to Canada, at Ottawa on June 29, by Marshal Fayolle, of
Rodin's bust "La France Reconnaissante" ; the gift was accepted
by the Acting Premier, Mr. Doherty, and the Opposition Leader,
Mr. King, on behalf of the Dominion. Another was a passing
242 THE CANADIAN ANNUAL REVIEW
visit to Canada of Mrs. A. E. McCudden, mother of the famous
aviator and V. C. who lost his life — with his father and two
brothers — in the War. Mrs. McCudden represented the Mothers
of Britain at the burial of the Unknown American Soldier at
Washington. She was warmly received in Toronto on Dec. 3rd.
Many Addresses were presented to her and an official reception
given at the City Hall. The following list — while not absolutely
complete — shows the chief War Memorials completed and un-
veiled in Canada during 1920 and 1921 :
Date: 1920 Place Institution, &c. Form of Memorial In Memory of
Jan. 17. .Calgary McLeod St. Meth Ch Memorial Tablet Members who served
23..Truro Agricultural College Memorial Tablet Members who fell
Mch. 21. .Toronto St. Mark's Anglican Ch. Memorial Tablet Members who fell
22..Regina Metropolitan Church Memorial Tablet Sons of Regina College
28..Truro. St. John's Anglican Ch.... Memorial Tablet Lt. F. P. Layton
" 28..Toronto St. Paul's Anglican Ch Memorial Tablet Lieut. Denovan and
Bombdr. McWhinney
29..Toronto. Parliament Buildings Memorial Tablet Nursing Sisters of Orp-
ington
Apr. 18..Edmonton. City of Edmonton Memorial Hall Those who served
" 18..St. John Queen St. Meth. Ch Memorial Tablet Members who fell
May 2..Toronto. Deer Park Presby. Ch Memorial Tablet Members who fell
23..Newcastle. St. Andrew's Church War Memorial Cross Members who feel
" 30..Toronto. Berkeley St. Meth. Ch Memorial Tablet Members who fell
June 21..Toronto. G.A.U.V.._ Oil Painting Maj.-Gen. M. S. Mer-
cer.
27..Toronto. Avenue Rd. Presb. Ch Memorial Tablet Nursing Sister Mc-
Kenzie.
July 5. .Toronto. Parliament Buildings. Memorial Tablet Members of 2nd Con-
struction Battalion
Sept. 16..Toronto War Service Memorial
Club Organization of ClubThose who feel in War
17. .Montreal McGill Siege Battery Stone Flag- Pole Members who fell in
Base action
21..Picton Prince Edward Co. Men.Monument Those who fell in action
Oct. 3. .Ottawa First Baptist Church Memorial Tablet Those who fell in action
24..Toronto University Schools Memorial Tablet Students who fell
31. .Toronto. St. Clement's Ang. Ch Memorial Tablet Those who fell in War
31. .St. John Trinity Church Memorial Tablet Members who fell
31. .Toronto. St. Mark's Church Memorial Tablet Those who fell in War.
Oct. 31..Guelph St. George's Ang. Ch Memorial Tablet Those who fell in action
Nov. 14..St. John St. Luke's Church Memorial Tablet Those who fell in War
14..St. John. St. John's(Stone) Ch Memorial Tablet Those who fell in War
28..St. John Main St. Bapt. Ch Memorial Tablet Members who died on
service
28..Toronto. St. Joseph's Church Memorial Tablet Members who fell
28..Fairbank. Fairbank Memorial Schl.Memorial Tablet Those who fell in War
Dec. L.Owen Sound City of Owen Sound Monument Those who fell in War
3. .Toronto. Western Hospital Memorial Tablet Nursing Sister Davis
6..Toronto. Kew Beach Presb. Ch Memorial Tablet Those who fell in War
12..Ottawa. St. Paul's Presb. Ch Memorial Tablet Those who fell in War
21. .Ottawa Collegiate Institute Memorial Tablet Pupils who fell War
Ninette. Ninette District Monument Men who gave their
lives
1921 Rimouski Rimouski District Monument Those who fell in action
Jan. 9..Weston St. John's Anglican Ch. Memorial Tablet Members who fell
Feb. 11. .Winnipeg C.O.F. Court Garry No2Brass Tablet Members killed in War
Mch. 20..Toronto Trinity Anglican Ch Memorial Stone Members killed in War
Apr. 3..Gananoque Methodist Church Brass Tablet Members who fought
in War
3..Toronto. College St. Meth. Ch Memorial Tablet Those who served
3. .Chatham St. Luke's Meth. Ch Bronze Tablet Those who ell in war
10..Winnipeg Crescent Congreg'l Ch.. Memorial Tablet Sigt. A V. MacDonald
10..Montreal Webster Memorial Methodists who served
HalL n Great War
10..Montreal All Saints' Angl. Ch Brass Tablet and Those of parish who
Memorial Altar fell
14..Montreal Presbyterian College Memorial Tablet 11 students who fell
14..St. John Luxor Temple, A.A.O.N. Members who served
M.S Bronze Tablet in Great War
17..New Westminister.... Holy Trinity Cathedral Memorial Tablet Members of Parish
who fell
17..Winnipeg Fort Rouge Meth. Ch Bronze Tablet Men of the C. who fell
17..Moncton... St. John's Presb. Ch Brass Tablets and Members of Congrega-
Memoiial Window.... tion who fell
16..Toronto South House, University
Residence..... Bronze Tablet Students killed oversea
WAR ECHOES IN 1921 ; CANADIAN MEMORIALS TO THE DEAD 243
Date: 1920
Apr. 17.. Toronto...
" 18. .Hamilton.
J9..Montreal.
24.. Toronto...
Place
.Wesley an College
St. Peter's Angl. Ch
'•
24. .Montreal
24 . .Vancouver.
24 St John
Centenary Meth. Ch
St. Mark's Church
All Saints' Church
.Marble Tablet
.Memorial Tablet..
Memorial Cross....
M
28 Toronto
Rusholme Lawn Bowling
M
29 Toronto
Club
Wycliffe College
Club Memorial
Bronze Tablet
May
1.. Toronto
Toronto
Upper Canada College
Trinity East Church.. ..
Memorial Tablet..
Memorial Tablet..
K
1.. Montreal
L.Carievale
3.. Toronto....
Stanley Presb. Church...
Union Church
Balmy Beach School
St Paul's Angl Ch
.Memorial Tablet..
.Memorial Tablet..
.Memorial Tablet..
Brass Tablet
M
8.. Vancouver
Turner Institute
.Memorial Tablet..
8..St. John
8..Fredericton...
8..Toronto
11. .Windsor
15. .Hamilton
21. .Toronto
22..Brockville
22. .Kingston
22..Cloverdale, B.C...
" 24. .Vancouver
" 24.. Great Village
24..Montreal
" 24..Mono Mills, Ont.
24..Keene, Ont
" 27..Indian Head
" 28..Bird's Hill
29..Toronto
29..Chatham
June 2..Biscarth
5. .Margaret
13..Toronto
14..Truro
18..Toronto
22..Truro
Institution, &c. Form of Memorial In Memory of
.Church of St. Clement's. .Memorial Tablet Men of Con. who fell
.The Bank of Hamilton.... Bronze Tablet Employees who fell
..Memorial Tablet Those connected with
the College who fell
..Stained Glass Win-
dow Membeis killed in War
..Members who fell
.Members who fell
.Members who fell
Major Crawford and
. Lieut. Eaton
..Sons who fell
.Boys of the College
who fell
.Members who fell
.Those who fell in war
.8 Soldiers who fell
.Two former members
who fell
..53 members who gave
their lives
.E. S. Corrin, R. B.
Carter, William
Mitchell
..Young men of St.
Andrew's who fell
..8 members who fell
..Lt. Harry Saxon Pell
Lt. Willard A. Pell
..Students who fell
..Members who felll
Memorial Tablet Royal Canadian Dra-
goons who fell
Memorial Tablet Church members who
fell
.Members of R.C.H.A.
who fell
.Surrey Men who fell
32 Club members who
. fell in War
.Native sons of who fell
Members of the Club
. who died in War
.Men of Caledon, Al-
bion, Mono, Ad jala
.53 Otonabee Township
boys who fell
52 Fallen sons of the
. Town
.Local Soldiers killed
General Mercer and
. Companions
.9 St. Andrews young
men who fell
Monument Those who fell
St. Andrew's Presb. Ch. Brass Tablet
Brunswick St. Bapt. Ch. Memorial Tablet.
Parkdale Meth. Ch Memorial Tablet.
King's College Memorial Tablet.
McNab St. Presb. Ch Memorial Window
....Wall St. Meth. Ch.
Monument..
Monument
Vancouver Lawn Tennis
Club Memorial Tablet
Monument
Royal Montreal Golf
Club Memorial Tablet
Monument
.Monument.
Indian Head Monument and
Memorial Park.
Memorial Association Monument
General Mercer Branch
G.W.V.A Memorial Service
....St. Andrew's Presb. Ch... Memorial Tablet..
Binscarth and District
.Citizens of Margaret Monument Soldier boys who fell
Ontario College of
Pharmacy. Memorial Tablet.
Canadian Bank of Com-
merce Memorial Tablet.
St. Paul's R.C. Church. ..Marble Statue
....Colchester Co. Academy Memorial Tablet.
21..Beaconsfield
27..Cobourg
24..Rossburn
June 25. .Champion
26..Norway House, ..
Beacons field and Dist..
St. Peter's Sask. Church.. Memorial Window
Rossburn Monument
Canadian Bank of Com-
merce. Bronze Plaque
Obelisk
July
2..Amherst
3..Bridgewater
3. .Chatham
3. .Maple Creek
5. .Winnipeg
17.. Lewis ville
19.. Gilbert Plains
19.. Edmonds
Senator & Mrs. Curry Monument
St. John's Church Memorial Tablet
St. John's Presb. Ch Memorial Tablet.
Presbyterian Church Memorial Tablet.
Citizens of Barlingford
District Memorial Hall
Lewisville Bapt. Ch Monument
..St. Alban's Angl. Ch Memorial Tablet
Graduates and under-
. graduates who fell
1,701 employees who
. served in War
.81 men of parish killed
.Former students who
fell in War
Memorial Shaft Those who died in War
.Maj. Herbt. G. Bolster
.Local men who fell
Boys from local Branch
who served
.Men of District who
fell in action
.Capt. Leon Hall Curry
.Members killed in War
.Local men who served
in the War
.Boys who gave their
lives
Sons who fell in
. Great War
..Fallen soldiers of
Lewisville
.Soldiers of Gilbert
Plains District
Heroes who fell in War
.Monument
244
THE CANADIAN ANNUAL REVIEW
Date: 1920 Place
July 17..Strathmore:
24.. St. Catharines
26..Walkerton
Aug 1 Beaver
Institution, &c. Form of Memori
War Memorial Hal
al In Memory of
I ..Local men who made
supreme sacrifice
...City men who died in
the War
...Men who fell in War
...Beaver District's fallen
soldiers
...Boys of North Queens
who fell
....Those who served from
G.W.V.A .Memorial Shrine....
Monument
Monument
2 Caledonia
Monument
" 4 Oak Point
Monument
4..Wapella
" 7. .Vancouver.
14. .Hampton
15..RockwoodPark...
" 27..Clanwilliam
27 Welsford
Citizens of Wapella Monument
Parish of Greenwich
...Citizens who fell
...Members who served
...Members who gave
their lives
. . .Residents who fell
...Fallen Heroes
....Soldiers of District
who fell
...Lt. J. Wallace Corey
h. Soldiers and Nurses
First Congregational Ch Honour Roll
St. Paul's Church Brass Tablet
Rockwood Comfort Club Monument
... Clanwilliam. Monument
Women's Institute Monument
28..Canaan
Sept. 5. .Stanley
Baptist Church Memorial Tablet...
Women's Institute Memorial Cenotap
14..Huntingdon
8..Kamsack
18 Carleton
Huntingdon County Monument
Citizens of Kamsack and
District Memorial
Monument
....Cenotaph ,
24..Toronto
24..Calgary
23..Iroquois
27..Hamiota
30..Morden
.Golf and Country Club... Memorial Tablet
.Iroquois High School Memorial Tablet
Oct.
30..Carp
L.Sherbrooke.
2..Fairville
L.Rathwell
2..Victoria
2..Manitou
2.. Fort Frances
14.. Montreal
16..Liverpool
16..Minnedosa
14..Creston
19..Bolton
21. .Montreal
22.. Montreal West.
23..Broomhill
28..Brandon
29.. Montreal
30.. Montreal
Nov. 1.. Winnipeg.
11. .Montreal...
11.. Toronto
from Parish
..Men of County who
fell
Local men who died in
.. War
..6 sons of Carleton who
fell
.Capt. John Denison
and 9 of his descen-
dants who fell
..Members who fell dur-
ing the War
. .Students and ex-stu-
dents who fell
Cenotaph Soldier sons of District
Citizens of Town Monument Boys of Community
who were killed
Masonic Order and Gen- Carleton County men
eral Public Memorial Temple who served
High School Memorial Tablet Pupils who fell
Church of the Good Four men from the
Shepherd Brass Tablet Church killed in ac-
tion and 36 others
who served
Girl's Khaki Club Monument Illustrious Dead of
District who fell
British Columbia's fal-
. len warriors
Heroes who fell in
. Great War
..Men who were killed
Gunners of McGill
Siege Artillery Unit
.Sons who fell
.District's sons who fell
Branch employees who
. enlisted
.56 who made supreme
sacrifice
..Past students who
served in War
..Local men who died or
served in the War
..Men of the community
who fell
Members of local staff
.Bronze Tablet who served
Members who died
. Overseas
.Men of Con. who fell
..Heroes of Northwest,
South Africa, and the
Great War
City of Montreal Cenotaph The Country's Dead
..Pupils and former
pupils who fell
..Barristers and law stu-
dents who fell
..Local Y.M.C.A. Heroes
of the War
Fallen heroes of the
.The Province of British
Columbia Memorial Avenue.
..Municipalities of Pem-
bina and Manitou Monument
.Citizens of District.
.McGill University...
Monument....
.Memorial Flagstaff
Citizens of Queen's Co Monument
Granite Monolith..
Canadian Bank of Com-
merce Memorial Plaque..
Monuments
Westmount High School Bronze Tablet
Monument
Muniplty. of Broomhill... Memorial Tablet..
Canadian Bank of Com-
merce
Quebec Lawn
Association Bronze Tablet
Knox Cresent Presb. Ch. Bronze Tablet
St. John's College Bronze Tablet
Bowling
..Harbord Col. Institute.. ..Monument....
ll..Calgary Law Society of Alberta.... Memorial Tablet..
ll..Toronto. West End Y.M.C.A Memorial Tablets..
ll-.Middleton Municipality of Middle- Memorial Tablet
ton Memorial Hosp'l... War
THE GOVERNOR-GENERALSHIP OF CANADA IN 1920-1921 245
Date: 1920 Place Institution, &c. Form of Memorial In Memory of
Nov. 11.. Edmonton Alberta Law Society Bronze Tablet Barristers and law stu-
dents who fell
" 11. .Vancouver Kitsilano Branch, Bank Clerks who served in
of Commerce Memorial Tablet Great War
" 11 Duncan. Cowichan Electoral Dis... Memorial Cross Members of District
who fell
13..MontreaJ Church of St. AndrewMemorial Window Fallen officers and men
and St. Paul and Tablet of 42nd Battalion
ll..Wawanesa Municipality of Wawan- Fallen heroes of Dis-
esa Monument trict
13. .St. John St. Jude's Church Memorial Window ..Men of Church who fell
15..Kamloops Canadian Bank of Com-
merce Memorial Tablet War dead of the Staff
15 Toronto.... Rcyal Bank of Canada.... Memorial Tablet Members of staff who
fell
18. .Montreal Verdun High School Memorial Tablet Pupils of Verdun
schools who served
" 20 Toronto . Rosedale Presb. Ch Memorial Tablet Members who fell in
Great War
18. .Toronto Toronto Technical Schl... Memorial Pipe Comrades who fell in
organ the War
27. .Vancouver University School 10 Tablets of Students of School who
Bronze and Oak.... served and fell
20..Kentville St. Paul's Presb. Ch Roll of Honour Members who served
in the War
" 23 .St.. Joyns Que Royal Canadian DragoonMemorial Clock and Canadian Dragoons
Tablet who fell
" 20,.Chemainus Municipality of Chemain Granite Obelisk 8 Men who made su-
preme sacrifice
27. .Toronto St. Paul's Angl. Ch Memorial Windows.. Men of Con. who fell
29..Minto. Municipality of Minto Memorial Hall Local men who died in
Great War
30..Hillsboro John L. Peck,M.L.A Memorial Hall Albert Co. men who fell
Dec. 4. .Halifax Fort Massey Church Memorial Window.. ..Men of Con. who fell
4. .Chatham, N.B St. Mary's Chapel-of- Members who fell in
East Roll of Honour. War
" 9. .Toronto McMaster University Bronze Tablet Graduates and under-
graduates who fell
" IL.Dundas Municipality of Dundas.. Monument Heroes who fell in the
South African and
Great War
16.. Vancouver. Canadian Bank of Com- Members of Local
merce Bronze Plaque staff who enlisted
21. .Calgary Central High School Memorial Tablet Students who died in
Great War
1 8.. Duncan, B.C St. John the Bapt. Ch Bell and Roll of Members of Church
Honour. who fell
" 17..Pictou Royal Bank of Canada.. ..Bronze Tablet G. R. Cm'sholrn and
Wallace King
22..Toronto Board of Education Bronze Tablet Employees of the Board
who fell
May 11. .Toronto. National Club Memorial Tablet Members who fell
The position of Governor-General has always,
The Govern- in Canada, been regarded as a vital link in the
or-General- union of Great Britain and the Empire ; in 1920
ship of an(j 1921 there was some discussion in a section of
Canada: The the Dominion press as to (1) the desirability of
the aDpointment being subject to approval by the
Devonshire n j- /•* ? jj /^\ ^ -i •«•!
and Lord Canadian Government and (2) the possibility ot
Byng of appointing a Canadian. Neither point was widely
Vimy. or seriously dealt with except, perhaps, in cables
to American papers, which referred in sensational
terms to new developments regarding Canada's National status
and which were duly published in Canadian journals through the
American Associated Press service. The Toronto Star and the
Winnipeg Free Press were the chief exponents of the idea that,
as the former paper put it on Feb. 18, 1920, "the King will con-
sult his constitutional advisers in Canada in making this Cana-
dian appointment." J. S. Ewart, K.C., of Ottawa, the well-known
246 THE CANADIAN ANNUAL REVIEW
advocate of Canadian independence, proposed Sir Robert Borden
as Governor-General ; he had once paid Sir Wilfrid Laurier the
same personal compliment. To such suggestions Prof. W. F.
Osborne of Winnipeg responded as follows in the Free Press of
Feb. 16, 1921 :
You say the Governor-General should be chosen by Canadian min-
isters. That would result, and fairly promptly, too, in a Canadian ap-
pointee. At the same time, you stand for the British Sovereign as the
crown of our system. But the Crown would be a fiction under those
circumstances. How prove it? You laugh at the appeal of the Privy
Council being an appeal to the Throne. Tut, you say, the Throne has
nothing to do with it ; it is an appeal to a group of English lawyers. By
the same token, what would the assent of the Crown to Canadian legis-
lation amount to, if it were an assent by an appointee of the Canadian
Government with the latent right of Disallowance on the part of the
Home Government quite gone?
This year saw the close of the Duke of Devonshire's period
of vice-royalty. He had performed his duties faithfully ; he had
probably spent much more than his Canadian income of $50,000
a year ; he had traversed the Dominion several times from coast
to coast ; the Duchess had aided in making the social side of his
regime popular, dignified and unostentatious. During 1920* the
Duke had visited Northern Ontario in February — including
North Bay and Cobalt, the Swastika and Kirkland Lake mining
regions, Haileybury and Temiskaming. In June and July he had
toured the Maritime Provinces and visited all the centres, in-
cluding Summerside and Charlottetown, Montague and Souris,
P.E.I. ; Amherst, Louisbourg and Sydney, Baddeck and Halifax,
Shelburne, Yarmouth and Digby in Nova Scotia; St. John in
New Brunswick and St. John's, Newfoundland. In December he
was again in Nova Scotia and visited some of the above places,
again, together with Truro, Windsor, Grand Pre, Wolfville and
Kentville, Annapolis, Liverpool and Lunenburg. The chief event
of the year had been his Western tour with the following
itinerary :
Sept. 7— North Bay, Temagami, Sept. 25— Boston Bar and Van-
Englehart. couver.
8— Cochrane, Grant, Arm- " 28— Campbell River and Al-
strong, Sioux Lookout. berni.
9— Winnipeg, Dauphin, Kam- 29— Sproat and Central
sack, Warman. Lakes.
" 10-Battleford and Edmon- °<2' J— Victoria.
ton 6— Golden.
" ll-Wetaskiwin; visit Peace I %$
" 23-Jasper Park. . M-Fem™ Coleman.
24— Red Pass, Blue River, 12— Regina.
Kamloops. " 13 — Winnipeg.
His Excellency was in Toronto on Mch. 3rd, 1921, attending
the annual Red Cross meeting; on the 30th the Duke and
*Note.— These facts were unavoidably omitted in the 1920 volume.
THE GOVERNOR-GENERALSHIP OF CANADA IN 1920-1921 247
Duchess were in Winnipeg on a farewell tour of the West and
attended a Reception held by the Lieut.-Governor and Lady
Aikins in the Parliament Buildings with 3,000 guests present. A
luncheon was given the Duke by the Legislative Assembly of
Manitoba and to the Duchess by the Women's Canadian Club ; on
the 31st the Tuxedo Hospital was visited and the Duke was the
guest of the Canadian Club at luncheon; the Boy Scouts, Wolf
Cubs and Naval Brigade were inspected. The Vice-Regal party
—which included, during parts of the tour, Lady Anne Caven-
dish, Lady Maude Mclntosh, Lord Hartington and Lord Charles
Cavendish — were welcomed in Brandon on Apr. 1st and were in
Regina on the 2nd when flags and military salutes, crowds and
the usual functions marked the visit. At the Government
luncheon His Excellency said: "In getting your country filled
up, always bear in mind that of all colonization agencies in the
world, nothing has ever approached the cradle." He added that
"more attention should be paid to public health — no fussy look-
ing after people's business by Governments but a general awak-
ening of public opinion." Edmonton was reached on Apr. 6 and
the farewell included an Address from the Legislature, a
luncheon to the Duke and Duchess by the Women's Canadian
Club, a luncheon tendered by the members of the Legislature, a
Reception at the University of Alberta. At Calgary on Apr. 8
the Governor-General attended an informal Reception at the
Palliser Hotel and received an Address from the city.
Vancouver tendered Their Excellencies a banquet at the
Hotel Vancouver on Apr. 19 and here the Duke's eldest son, the
Marquess of Hartington, made a brief speech; earlier in the
day a Reception was held with 2,000 people present and the Duke
spoke at a Canadian Club luncheon. A Red Cross meeting was
also attended. At Victoria (Apr. 19) the Duke unveiled a statue
of Queen Victoria and two Memorial tablets in the Parliament
Buildings to officers and men of local Regiments who fell in the
War; the Royal Society of St. George presented an address of
"fervent loyalty to the Throne of Great Britain" ; the Cadets of
the University Military School at Mount Tolmie were visited
and inspected by the Governor-General; a Reception was held
at Government House where, also, an official Dinner was given
by the Lieut.-Governor and Mrs. Nichol. Returning East a visit
was paid to Calgary (Apr. 21) and at the great Bassano Irri-
gation works the Duke operated a huge tractor for a short time ;
Moose Jaw gave a cordial welcome on the 27th and Port Arthur
on the 28th. In Ottawa on May 2nd the Governor-General sign-
ed the proclamation inaugurating a two months' campaign, dur-
ing May and June, to be conducted by the Canadian Red Cross
for increased membership and support to the idea of National
health. Ensuing incidents were as follows :
May 19. Unveiling on Parliament Hill, by the Duke, of
Sun-dial on spot where Col. John By, founder of Ottawa,
placed the original dial Ottawa.
248 THE CANADIAN ANNUAL REVIEW
May 21. Farewell visit of Their Excelliencies, accom-
panied by Lord and Lady Hartington •'••••' V • -Toronto.
May 21. Unveiling by Governor-General of Memorial
Tablet at Stanley Barracks; Visit to Woodbine Races. ... .Toronto.
May 23. Empire Day parade and review of 7,400 To-
ronto cadets; Presentation of Illuminated Address to
Their Excelliencies from the Red Cross Society; Civic
Luncheon tendered to the Duke Toronto.
May 25. Attendance at Jockey Club Luncheon Toronto.
May 26. Farewell Garden Party at Government
House • • .Toronto.
May 28. Visit of Vice-regal Party to Hamilton and
cordial welcome • Hamilton.
May 29. Her Excellency the guest of honour of the
Women's Canadian Club; the Duke inspected 600 Boy
Scouts Ottawa.
June 3. Farewell Address presented by House of
Commons to His Excellency Ottawa.
June 8. Visit to Midland after a two-day trip along
the north shore of Lake Huron and among the islands of
the Georgian Bay; the Marquess of Hartington launched
the Canadian Logger, a local freighter; the Duke opened
new wing of Hospital Midland.
June 9. Parry Sound and other Lake points visited. . .Parry Sound
June 18. Farewell to the Capital Ottawa.
June 20. Memorial Tablet in High School unveiled;
Shrine at Ste. Anne de Beaupre visited Quebec.
July 15. Farewell Speech of the Duke to Canadian
Club Quebec.
July 18. Banquet by the Government of Quebec Prov-
ince to the retiring Governor-General and the Duchess of
Devonshire Quebec.
In the Parliamentary Address (June 3) it was stated that:
"Your Excellency has by travel acquired a wide and deep
knowledge of the country and shown a sympathetic understand-
ing of the ideals and aspirations of its people, and we beg leave
to assure you of our appreciation of your interest in, and ad-
vocacy of, every national cause and your support of art, science
and education." The ensuing tributes of Mr. Meighen, Mr.
Mackenzie King, Mr. Crerar, Sir R. Borden, were earnest and
obviously sincere. Just before leaving Quebec, on July 18, the
Duke received a despatch from the Colonial Secretary express-
ing the Government's appreciation of his services and its recog-
nition of Canada's cordial attitude toward its retiring Governor-
General.
Appointment of Lord Byng of Vimy. There were many
rumours as to who the Duke of Devonshire's successor would
be ; Lord Burnham was suggested and the Earl of Desborough
was offered the post, which he declined for personal reasons;
the Duke of Northumberland's name was prominently mention-
ed. In Canada the press discussed the appointment as an
honour which should be greatly appreciated. So it was, but, at
the same time, it was not realized or fully expressed that for
men of sufficient standing and importance it really involved
great sacrifices — the leaving of interests and friends, and the
THE GOVERNOR-GENERALSHIP OF CANADA IN 1920-1921 249
transfer of family life to a new country, at an age when such
changes are not thought lightly of ; moreover, the expenses of
the post were generally believed to be greater than the salary
and official allowances. On June 3rd it was announced in Canada
that General, The Lord Byng of Vimy, G.C.B., K.C.M.G., M.V.O., had
been appointed and had accepted the position. Born in 1862, a
son of the 2nd Earl of Stafford, married in 1902 to the daughter
of Hon. Sir Richard Moreton, K.C.V.O., a brother of the 3rd Earl
of Ducie, he had seen active service in the Soudan and South
Africa and Egypt ; as Sir Julian Byng he commanded the 3rd
Division in France for a time, the 9th Corps at the Dardanelles,
the Canadian Corps in France and, finally, the 3rd British Army ;
he was at this time Chairman of the United Services Fund which
administered the Expeditionary Canteen accumulations.
The press and people of Canada were practically unanimous
in approval of the appointment ; some of the more radical papers
such as the ToVonto Star (June 4) expressed the belief that the
selection was made "with the approval of the Canadian Govern-
ment" ; interviews with officers and men of the Canadian Corps
evoked many strong tributes of praise and respect — notably from
Brig.-Gen. C. H. Mitchell, Lieut.-Col. W. G. MacKendrick,
Lieut.-Col. D. H. C. Mason of Toronto, the G. W. V. A. officials
at Ottawa, Sir Arthur Currie, who was then in London. Lady
Byng was known as the authoress of two novels — Anne of the
Marshland and Barriers — written in 1912 and 1913 respectively;
she had, as a child, been in Canada with her father when he was
on the Staff of Lord Lome ; her maternal grandfather was of a
well-known Greek family — Mr. Thomas Ralli; she was, herself,
a member of the British Society of Women Journalists. Before
leaving for Canada Lord Byng was entertained at a Dinner by
the Canada Club (July 28) with the Duke of Connaught, General
Sir A. W. Currie, Lord Lee of Fareham and Hon. C. C. Ballan-
tyne as the speakers. In his speech Lord Byng declared that "if
you could adjust the balance of law to the balance of liberty, you
would get what was ideal in democracy." Pride in the Mon-
archy and in British citizenship were defined as the two great
bonds of Empire.
On Aug. 10 the new Governor-General and family arrived
at Quebec on the Empress of France and received a welcome from
massed crowds of people and an official one from Mr. Meighen
as Premier of Canada and Mr. Taschereau as Premier of Quebec.
At the Government luncheon he stated that Canada had asked
for him and he came : "I've never done anything like this, you
know, and I expect I'll make mistakes. I made some mistakes
in France, but when I did the Canadians always pulled me out of
the hole. That's what I'm counting on here." Ottawa was
reached on the llth and amidst the booming of guns, the clamour
of bells, brilliant decorations and the acclaim of a tremendous
crowd, Lord Byng entered upon his duties. A Civic address was
250 THE CANADIAN ANNUAL REVIEW
presented on Parliament Hill with much state and ceremonial —
together with one from the G. W. V. A. An informal speech
followed at a dinner of the Dominion Rifle Association, Ottawa,
on Aug. 19, and a reference to Militarism was cleverly made :
"If it means what the father of Frederick the Great thought it
meant, whose chief happiness in life was to see the young men
of the nation practicing the goose-step outside his palace win-
dows then I do not approve of it ; in fact, I would rather see the
young people practice the fox-trot. But if Militarism means
pride in what the Canadians and the other troops of the Empire
did during the 4^ years of war, then I am an 18-karat mili-
tarist."
Lord and Lady Byng were in Toronto on Aug. 27 where
they stayed with Sir Joseph and Lady Flavelle at "Holwood";
an Address was presented by Mr. Drury as Provincial Premier in
the Legislative Chamber and a Civic address was tendered at
the City Hall; a parade through the City followed and the Na-
tional Exhibition was formally opened in the afternoon when
about 10,000 War Veterans were also reviewed. In the Provin-
cial Address it was stated that "the long and conspicuous mili-
tary career of Your Excellency has won the respect of all who
have acted with or served under you, and it is a fortunate cir-
cumstance that the courage, fidelity to duty, and love of justice
displayed by you in high military command are now at the dis-
posal of the civil state, in these happier times, when peace, good-
will, and integrity should be the guiding principles of our na-
tional life." The Exhibition Address presented by Robert
Fleming, President, also referred to His Excellency's military
career : "Our soldiers have brought home tales of the strenuous
days of Sanctuary Wood, the Somme and Vimy Ridge, and
woven through all is the theme of unswerving faith in their
leader who, by his practical, sympathetic interest in their wel-
fare and by his military genius contributed so much to those
splendid victories."
In his reply to the latter Lord Byng eulogized the Canadian
National Exhibition as "famous throughout the British Empire
and the Continent of America." To the Veterans all around
him he spoke of the past and the present : "That the War we
have just passed through was just, was necessary, was in de-
fence of our ideals and our liberties, no one, I think, will deny.
We have won it and kept our freedom, but we have to pay the
price all the same." A second visit to the Exhibition on Aug. 28
evoked another and remarkable ovation from the great crowds ;
the Canadian Club was addressed on the 29th and an appeal made
to support and stand by the returned soldiers — the "Byng Boys"
of the strenuous past ; later on, at the rooms of the Commercial
Travellers' Association, a memorial was unveiled by the Gov-
ernor-General to 500 members who served in the War. During
the visit many institutions were seen and a kind word or cordial
greeting given the inmates.
THE GOVERNOR-GENERALSHIP OF CANADA IN 1920-1921 251
Montreal was visited on Sept. 6 and the Royal Victoria Hos-
pital, the Red Cross Lodge and other institutions inspected. On
the 12th Lord Byng addressed a luncheon of the Central Canada
Exhibition at Ottawa ; the Vice-regal party attended the Con-
naught Park races at the capital on Sept. 13 ; at Montreal, again,
on Oct. 13, McGill University was visited. On this occasion His
Excellency received the Hon. degree of LL.D. in connection with
the 100 years' anniversary of that institution ; he urged the
teaching and study of English in history as useful in the building
up of the Dominion. On Nov. 19 Lord Byng opened a Memorial
Hall at Ottawa in honour of the men of St. Matthias Parish who
had served and fallen; on the 28th Lady Byng was the guest of
the Toronto Women's Press Club and delivered a witty and
charming speech in which, however, she declared there were "no
outstanding writers" in England to-day ; at Toronto University
on the same day Lord Byng accepted an Hon. LL.D. and re-
ceived a great welcome from the students.
On the 29th the Public Library was visited, Lady Byng at-
tended an I. O. D. E. Municipal luncheon, officers of the Toronto
Military District were presented to His Excellency ; in the even-
ing a Dinner of the Empire Club was attended and a tactful
speech given by the Governor-General. On the 30th Lady Byng
addressed the Big Sisters' Association and His Excellency un-
veiled a Tablet at St. Andrew's College to students who fell in
the War; in the evening St. Andrew's Ball was attended. The
Governor-General was in Kingston on Dec. 14 and formally
opened a Memorial Hall in honour of the fallen and unveiled 12
Memorial windows and tablets ; later he received the Hon. de-
gree of LL.D. from Queen's University and unveiled a bronze
tablet erected in memory of its 107 graduates, etc., who fell in
action during the War. Various appointments were made at the
close of the year in connection with the Governor-General's
Staff, including Capt. Walter Hose, C.B.E., as Hon. Naval A.D.C.
and the following as Hon. Military Aides-de-Camp :
Brig.-Gen. D. M. Ormond, C.M.G., Lt.-Col. W. W. Foster, D.S.O.
D.S.O. Lt.-Col G. R. Pearkes, v.c., D.S.O.
Commissioner A. B. Perry, C.M.G. Lt.-Col. L. R. LaFleche, D.S.O.
Brig.-Gen. C. H. Maclaren, C.M.G., Lt.-Col. C. R. E. Willets, D.S.O.
D.S.O. Lt.-Col. R. L. H. Ewing, D.S.O., M.C.
Brig.-Gen. T. L. Tremblay, C.M.G., Lt.-Col. J. L. Ralston, C.M.G., D.S.O.
D.S.O. Lt.-Col. A. McMillan, D.S.O.
Col. Sir Percy Sherwood, K.C.M.G., Lt.-Col. D. A. MacKinnon, D.S.O.
M.V.O. Major A. Payette, M.C.
Colonel A. Macphail, C.M.G., D.S.O. Hon. Physician, Major-Gen. J. T.
Colonel J. B. Rogers, C.M.G., D.S.O. Fotheringham, C.M.G.
Colonel C. W. Peck, v.c., D.S.O. Hon. Air Aide-de-Camp Lt.-Col.
Lt.-Col. C. M. Edwards, D.S.O. J. S. Scott, M.C., A.F.C.
252 THE CANADIAN ANNUAL REVIEW
Imperial Incidents of Canadian Concern.
Jan. 6. The Earl of Reading, G.C.B., G.C.S.I., G.c.i.E., K.C.V.O., K.C., was
appointed Viceroy of India and the Earl of Lytton Governor of Bengal.
Jan. 13. In the course of a Scottish tour by a number of Canadian
curlers headed by Judge Patterson of New Glasgow— who had won 17
matches and lost one since Jan. 8— they were entertained at luncheon by
the Corporation of Edinburgh with Dr. Macnamara, Minister of Labour,
Jan. 28. In the old Parish Church of St. Alphage, Greenwich, in the
crypt of which General Wolfe is buried, a Canadian flag and tablet in
memory of Lieut. W. R. Read of Toronto, were dedicated by F. C. Wade,
Agent-General for British Columbia.
Jan. 29. The appointment was announced of Dr. Herbert Eldon Roaf
as Professor of Physiology in London University. A son of J. R. Roaf,
Toronto, he had graduated from Toronto University in 1902 as gold
medallist, then was nominated for the Colonial Fellowship at the Uni-
versity of Liverpool and, later on, was given Research scholarships for
two years by the Medical Association of Great Britain. During the War
he was in the Medical Service at Cairo, Egypt, and in the campaign to
Palestine.
Feb. 8. It was announced in the Vancouver Province that the firm
of Stewart and McDonnell, of which Maj.-Gen. J. W. Stewart, C.B., C.M.G.,
of Vancouver, was the head, had been appointed by the Imperial Gov-
ernment engineers in charge of the spending of $17,000,000 on the first
unit of enormous harbour works at Takoradi on the Gold Coast and
was now rapidly organizing for its great task. Large quantities of ma-
terial would be shipped from Canada to be used in this work.
Feb. 12. Rt. Hon. Winston Spencer Churchill, M.P., succeeded Lord
Milner as Secretary of State for the Colonies.
Feb. 17. In the list of new Barristers recently "called" by the Inner
Temple, there appeared the name of Frank Gahan, M.A., LL.B., B.C.L., who
was born in London, Ontario, graduated from the University of Toronto
just before the War, and served for nearly 4 years with the Canadian
forces overseas. Since then he had taken the degree of LL.B. at the
University of London, with first-class honours, and was placed in the
first class by the Council of Legal Education in his final examination for
the English Bar; at Oxford in one year less than the usual time, he took
his B.C.L. degree with first-class honours.
Feb. 28. Mr. Lloyd George, in the Commons, announced that the ad-
ministration of Palestine, Mesopotamia, Aden, and areas within the
British sphere of influence would be transferred to the new Middle East
Department of the Colonial Office after Mch. 1st. Egypt, the Soudan
and Hedjaz would remain under the Foreign Office.
Mch. 31. For the fiscal year 1917-18 Australian imports from Canada
were £1,667,068, in 1918-19 £2,844,050, in 1919-20 £2,640,280.
Mch. 31. The first woman member of an Australian Parliament was
Mrs. Cowan who, in West Perth, defeated Hon. T. P. Draper, Attorney-
General of Western Australia.
Mch. 31. Announcement was made of the appointment of Edward R.
Peacock, London Manager of the Barcelona Traction Light and Power
Co., and a well-known Canadian financier, as a Director of the Bank of
England in succession to Lord Hollenden, who retired on account of ad-
vanced age.
Apr. 1. Sir James Allen, for six years Minister of Defence in New
Zealand and frequently Acting Prime Minister, was appointed High
Commissioner in England.
Apr. 27. The Rt. Hon. Sir Hugh Graham, Lord Atholstan, took his
seat in the House of Lords with the usual picturesque ceremonies and
attired in robes of scarlet and ermine. His sponsors were Lord Somer-
leyton, a Lord-in-Waiting, and Lord Islington, an ex-Governor of New
Zealand.
IMPERIAL INCIDENTS OF CANADIAN CONCERN 253
May 19. The British Empire Alliance was organized at Edmonton
with A. N. G. Bury as President, F. S. McCaul and Mrs. E. W. McDonald
as Vice-Presidents, W. M. Charteris as Secretary and a Committee which
included Col. Jamieson, Lt.-Col. J. D. Wilson, Arthur Mowat, A. B. Watt,
Rev. Canon Carruthers, Sydney Wood, K.C., Robert McCreath (Chair-
man Trades and Labour Council), J. W. H. Williams (Editor Western
Veteran), John Blue. The Hon. President was the Lieutenant-Governor
and the Hon. Vice-Presidents included Hon. F. Oliver, Chief Justice
Harvey, Hon. C. Stewart, Hon. D. L. Scott, General Griesbach, A. F.
Ewing, K.C., M.L.A., Dr. H. M. Tory and Rev. Dr. D. G. McQueen. It was
stated that a similar organization in Vancouver had 600 members. At a
large meeting of May 23 following, its objects were stated as follows:
"To foster, develop and further true allegiance to H. M. King George V
and his successors; to defeat all conspiracy and sedition, having for its
object disruption of the political, social, or economic institutions which
have been built up within the Empire; to combat all efforts to sever
Canada from the Empire."
June 15. The new Census figures of Australia showed a popualtion
of 5,419,702 or an increase of 969,721 since 1911.
June 30. The war indebtedness of Australia was £234,831,918 owing
to bond-owners in Australia, and £92,480,156 owing to the British Gov-
ernment.
July 1. The Saturday Review was announced to have passed under
the control of Sir E. Mackay Edgar, Bart., of Sperling and Co., bankers,
the well-known Canadian financier in London — and the editorship of
Sydney Brooks. While continuing its usual features in regard to po-
litical affairs and the drama, literature, music, and art particular atten-
tion was to be paid to financial and city matters.
July 5. The King conferred a G.C.M.G. upon General the Rt. Hon.
Lord Byng of Vimy, G.C.B., K.C.M.G., M.V.O., Governor-General Designate
of Canada.
July 14. Edinburgh University conferred the degree of Hon. LL.D.
in absentia upon Rt. Hon. Sir George E. Foster, Acting Prime Minister
of Canada and in person upon General Sir Arthur Currie, Principal of
McGill University, with that of Hon. D.D. upon Sir Robert Falconer,
President of Toronto University. A few days later Sir Robert received
an Hon. LL.D. from Dublin University.
July 15. The Australian Federal House of Representatives passed
the Bill to constitute a Tariff Board, composed of three members, to
which the Minister of Trade and Customs could refer matters relating to
the classification and value of dutiable goods, the necessity of tariff
and excise increases and reductions, and the granting of bounties.
July 19. Hon. J. H. Carruthers, lately Premier of New South Wales,
proposed a comprehensive colonization scheme for Australia and the
creation of a fund of £30,000,000, jointly backed by Great Britain and Aus-
tralia, to be raised as required and used in the settlement of unoccupied
land. He urged "a million farmers and a million farms" for Australia,
and that the whole Continent should be colonized — not merely a fringe
on the seaboard.
July 21. Hon. E. D. Millen, Australian Minister of Repatriation, told
the Senate at Melbourne an extraordinary story of incompetence and
reckless expenditure. Of the £50,000,000 appropriated for building cheap
and substantial houses— chiefly for returned soldiers— £12,323,499 had
been spent on 17,000 houses which were mostly vacant owing to graft,
poor construction and excessive cost.
July 30. 700 miles of three-quarter inch aluminum steel-reinforced
cable were ordered from the Northern Aluminum Co., Shawinigan Falls,
Que., by the Victoria (Australia) State Electricity Commission.
July 30. The nomination of Hon. Sir G. H. Perley by the Canadian
Government was announced as a member of the Imperial Shipping Com-
mittee recently appointed by Mr. Lloyd George. Sir H. J. Mackinder,
254 THE CANADIAN ANNUAL REVIEW
M.P., was Chairman, and the Committee consisted of 14 members who
were (1) to enquire into complaints from persons and bodies interested
with regard to ocean freights, facilities and conditions in the inter-Im-
perial trade and (2) to survey the facilities for maritime transport on
such routes as appeared to be necessary for trade within the Empire, and
(3) to make recommendations to the proper authority for the co-ordina-
tion and improvement of such facilities with regard to the type, size and
speed of ships, depth of water in docks and channels, construction of
harbour works and similar matters.
Sept. 1. Major H. A. Chisholm, M.C., was appointed as 1st Canadian
Government Trade Commissioner to India.
Sept. 4. A sermon delivered by Rev. Canon A. P. Shatford at Mont-
real was a remarkable presentation of Empire unity conditions — of what
he termed Identity of obligation, Identity of heritage, Identity of
achievement, Identity of destiny.
Sept. 27. Admiral of the Fleet Lord Jellicoe, G.C.B., O.M., G.C.V.O., was
sworn in at Wellington as Governor-General of New Zealand.
Sept. 28. Current Australian tariff changes were stated by President
P. B. Wilson of the Canadian Pulp and Paper Association to seriously
threaten Canadian trade in this connection through a preference to
Great Britain of $15 a ton over Canadian paper manufacturers. Edward
Beck, the Secretary of the Association, in Montreal stated that Mark
Sheldon, Australian Commissioner in the United States, had explained
the Bill to a Toronto gathering of manufacturers, and told them that if
Canada wanted to participate in the Preference this country should make
its desires known. The authorities at Ottawa were duly made acquaint-
ed with his message but, he said, it was not on record that they had done
anything. The Tariff finally passed on Dec. 9.
Oct. 1. The Commonwealth Bank of Australia— the first State bank
in the British Empire — with all its stock held by the Government of Aus-
tralia, authorized in 1911 and established in 1913, was reported as having
Assets of $700,000,000.
Oct. 7. Rt. Hon. Sir Joseph Cook, G.C.M.G., M.P., Treasurer of the
Commonwealth, was appointed Australian High Commissioner in London.
Oct. 29. Charles Cambie, London Manager of the Canadian Bank of
Commerce, in returning from a brief tour of Germany with Sir John
Aird, General Manager of the Bank, described the country as prosperous-
looking, the food as excellent, the Railway rolling stock as "spick and
span." Additions were being made to factories, workmen were entering
and leaving by hundreds; the chimneys were smoking; whole families,
from old men and women to children, were working in the fields from
sunrise to long after sunset; and there was an air of apparent pros-
perity throughout the country: "While the country is making goods
mainly to supply the deficiency in Germany incurred by the War, it is
also selling to European countries, especially to Russia, from which
country it obtains gold or foreign exchange for the goods supplied. It
is also shipping to Mexico and South American States."
Nov. 1. New Zealand put into operation a law involving the applica-
tion of the principle of compulsory state loans in connection with the
settlement of soldiers on the land. It was intended to complete a Loan
of $30,000,000 of which $21,000,000 only had been voluntarily subscribed.
Nov. 5. The Inter-State Australian Premiers' Conference dealt with
the Immigration problem. The Commonwealth was stated to be prepar-
ed to finance the Immigration scheme on a large scale but it was decided
that the States must formulate definite proposals for a land settlement
with guaranteed employment before the Commonwealth would give pro-
posed immigrants the positive assurances which were essential.
Nov. 6. There was unveiled in the well-known Kentish Village of
Orpington under the auspices of the Ontario Government — represented
IMPERIAL INCIDENTS OF CANADIAN CONCERN 255
by Sir George McLaren Brown — a Memorial Cross in honour of 90 Cana-
dian, 23 British and 5 Australian soldiers who died during the War in
the Ontario Military Hospital. Sir George Perley and W. C. Noxon
spoke briefly.
Nov. 25. Rt. Hon. W. M. Hughes, Prime Minister of Australia, re-
ceived a presentation of £30,000 of which £12,000 was subscribed in Eng-
land.
Dec. 9. The Australian House of Representatives rejected by 40
votes against 21 a motion in favour of reducing members' salaries from
£1,000 to £800.
Dec. 12. Prof. S. P. Leacock, Canadian humourist and economist, ad-
dressed the inaugural luncheon of the Canadian Club of Great Britain
in the King Edward VII Rooms of the Hotel Victoria, London.
Dec. 13. The death of Lord Mount-Stephen at the age of 92 re-
moved a great Imperial as well as Canadian figure — one who had lived
in England for many years after doing much for Canada. Some of his
later benefactions were as follows : Founding of Royal Victoria Hos-
pital, of Montreal, $1,000,000; Barnardo Home movement, $500,000; King
Edward's Hospital fund, $2,675,000; Queen Victoria's Unemployment
Fund, $5,000; Aberlour Orphanage (Scotland), $175,000; Dufftown (Scot-
land) Cottage Hospital, $25,000; endowment of Parish ministries of Spey-
side, $200,000; Montreal General Hospital, $50,000.
Dec. 31. Indian visitors of the year in Canada were Prof. S. L.
Joshi of Baroda College, Bombay; A. Russell Graham, a Canadian lay
missionary in India for many years ; Dr. S. K. Datta, who was described
by the press as "of India" and as giving "illuminating addresses" regard-
ing that mass of 350,000,000 people, with unstinted praise for Gandhi;
Lieut.-Col. Henry Smith, C.I.K., M.D., who described the situation as he
had personally seen it in the Punjab during the Dyer episode.
CANADA
AND
THE IRISH QUESTION
Is it possible to give a clear picture of condi-
The Irish tions in Ireland during the pivotal years of 1920-
Situation in 1921 without passion, partisanship or prejudice?
Wid Asect The difficulties in the way are obvious and very
of*the great but the gain would be considerable in even
Problem. a moderate degree of success. The issues involved
were vitally important to Canada — (1) as to its re-
lations with the Empire and the United States ; (2) as to peace
and harmony amongst sections of its own people; (3) as to its
attitude of mind and thought in respect to what had become a
world problem ; (4) because the form and operation of its own
institutions had become an essential factor in Irish re-con-
struction. As to some elements in the Irish situation there
would seem to be no serious doubt: (1) The outstanding Celtic
temperament of the Irish people and its influence upon their
historical outlook and political opinion; (2) the fact and the
importance of a great migration of the people ; (3) the historical
fact of economic prosperity at certain vital periods in Irish his-
tory and notably so in 1920-21.
A small country in itself, close to and overshadowed by a
larger, richer and more powerful Kingdom, Ireland might, under
normal circumstances, have become a prosperous Scotland or a
contented Canada. The Irish people, however, had a very dif-
ferent temperament from that of their associated nations and
lived under more stormy skies of fate than did the people of
Scotland, or Canada, or England itself. They have been great in
their individual achievements and, as soldiers, statesmen,
orators, affected the destiny of many a country other than their
own ; as a people they have spread over the world and influenced
the civilization and life of many lands ; as a race they developed
a sort of combative idealism which could become beautiful in its
softer phases of poetry and literature or bitter in its memories
of ancient wrongs and later griefs; as individuals they posses-
sed a charm of wit and humour, a freshness and vivacity of
thought, a geniality of manner and life which have added great-
ly to the happiness of English-speaking peoples ; as a nation,
they should have ranked amongst the proudest and best of the
smaller peoples.
But geography, historical feuds and temperament inter-
vened— and the greatest of these was temperament. Long ago
the Scotchman overcame his handicap of geography and
through possession of a stronger acquisitive temperament than
the average Englishman conquered the latter, commercially, in
his own home and competed successfully with him in his most
[256]
THE IRISH PROBLEM AND ITS WORLD-WIDE ASPECT 257
distant colonies; similarly, the Canadian, with much Scotch
blood in him, overcame the pioneer difficulties of half-a-con-
tinent and, in later days, extended his individual business success
into the greater population of the United States as, in an earlier
day, the Scot had done in England. The Irishman in his ex-
pansion abroad had gone first to France and Austria and Spain
where he shared in some of the biggest fighting and controver-
sial statecraft and militant ecclesiasticism of the Middle Ages;
then in modern days he went to England, to Canada, to Aus-
tralia, to the United States; always and everywhere, however,
he was an Irishman, a man with special temperament, views,
and aspirations — a special and passionate love for the land he
had left.
As time went on there were more Irishmen abroad than at
home. In the earlier period, when thev swarmed into the. fields
of European adventure and militant life, they were not always
antagonistic to England; often, indeed, they were amongst the
bravest of the brave in her far-flung armies and battle-line. In
more modern ages the crushing burden of a deep-seated griev-
ance— of an injustice which seemed greater than all remedial
efforts or changing policies — became imbedded in the minds of
millions whom conditions had forced abroad and who had be-
come citizens of many lands. There the Irish temperament came
into play ; the past was a more vital part of his intellectual per-
sonality, his heart-felt sentiments, than was the present.
Children of English Roundheads could forgive and forget
the oppression of the Royalists or the bitter memories of a
Jeffries and descendants of the Royalists would overlook the
dour narrowness and callousness of the followers of Cromwell;
the Catholics of England, when Emancipation Acts and freedom
and equality finally came, could forget and forgive the travail
of days when they suffered from biting restrictions and bigotry ;
the Protestants of England could, as time passed on, overlook
what they believed to be the oppression and cruelties of Mary's
reign and the memories of Philip of Spain in his onslaught upon
the liberties of their land ; North and South in the United States
could fight one of the bitterest wars in history and yet live in
later days of unity, amity and peaceful co-operation; Catholic
and French Quebec, and Protestant and English Ontario, after
50 years of intermittent racial and religious strife, can to-day
live in an atmosphere of friendliness and generous conciliation.
But the Irishman cannot forget the days of Cromwell's
cruelty or Ulster's dominance, the years of religious inequality
and Church of England tithes ; he does not overlook the past
sins of absentee landlordism, the old-time oppression of English
taxes and the system of eviction, the divergence of thought and
belief and practice between Protestant and Catholic; he will
not forget the severe disabilities of the Catholics or the harsh-
ness of Britain's 18th Century administration, the suppression
of the 1798 Rebellion or the corrupt ending of the Irish
258 THE CANADIAN ANNUAL REVIEW
Parliament in ensuing years. The typical Irishman still lives in
this unpleasant Past, the dreamy side of his mind dwells upon
Memories while the militant side of his nature rights the country
which embodies to him much that is oppressive and arbitrary.
The average Englishman, in either the past or the present, has
not understood the mentality of an Irishman ; the average Irish-
man at home or abroad dislikes and distrusts the Englishman.
The latter lives in the present, works for present success, strives
for material prosperity, takes the greatness of his own country
for granted. The Irishman is controlled by historical retrospect
— the glories of departed greatness, the magnified points of
past injustice, the traditionary deeds of martyrs to faith or
patriotism.
The migration of the Irish people has always been an in-
teresting subject of discussion, an important matter of interna-
tional development. The condition itself was not a peculiar one.
Every part of the United States has felt the imprint of English
and Scotch influence ; immigrants of those nations have aided
in the building-up of many countries ; millions of Englishmen
and Scotchmen have left the Old World for the New. But as
settlers, these races merged into the communities they entered ;
the Irishman might co-operate but he did not merge and, as a
rule, he remained Irish — with all the qualities, convictions, pa-
triotism and prejudice with which he was imbued in his home
land or which he had inherited from his fathers. A reasonable
estimate of Irish emigrants or their descendants outside of Ire-
land had been 20,000,000; the Sinn Fein estimate in these later
days is 30,000,000.
It is a curious fact, as illustrating peculiarities of national
progress, that in 1801 Ireland had as large a population as Eng-
land though it lacked unity, liberty, self-government ; its people
went on increasing until in 1841 they numbered 8,175,124 resi-
dent in Ireland. At this latter date England had 16 and Scot-
land 2y2 millions. Then began the decline in Ireland to the
4,390,000 figure of 1911; in 1920 the Irish-born living in the
United States numbered 1,139,578 while the total number of
Canadian-born persons living there was nearly the same — 1,117,-
136. The descendants of Irish-born settlers were, of course,
very numerous but there is no American estimate available. A
British Parliamentary paper issued in 1921 gave a record of
total emigration from Ireland to all countries, between May 1,
1851, and Dec. 31, 1920, as totalling 4,338,199; of these 2,287,374
were males and 2,101,739 females, and the greater part of them
were young people. As the majority went to the United States,
it is safe to put the Irish-born in that country plus those born of
Irish parents, at from 10 to 15 millions. During the War emi-
gration from Ireland largely ceased ; in 1919 the emigrants num-
bered 2,975 and in 1920 they were 15,585 though the Sinn Fein
leaders vigorously discouraged young men from leaving the
country at all. Another curious fact, in view of countless
THE IRISH PROBLEM AND ITS WORLD-WIDE ASPECT 259
charges as to violence and murder and sudden death in Ireland
during 1920 and 1921, was the death rate in the Island, which,
in 1920, was 148 per 1,000 — the lowest ever recorded; the deaths
numbered 66,538 as against an average in the previous ten years
of 74,317.
To the basic fact of peculiar temperament in the Irish race,
and the potent fact and force of Irish emigration, must be added
a very general statistical prosperity in Ireland during recent
years. How real this was, how deeply it touched the masses,
can only be estimated ; we know it did not bring peace and con-
tent of mind. Apparently the condition commenced in 1913 be-
fore the War, continued during the whole period of world-con-
flict, and lasted through the years of reconstruction and internal
warfare. According to a Statistical Statement issued in Sep-
tember, 1921, by the Irish Department of Agriculture, the de-
posits and cash balances in the Joint Stock Banks of Ireland on
June 30, 1913, totalled £62,142,000 and on June 30, 1921, were
£186,440,000. In the Post Office Savings Bank, where the
humble man kept his nest-egg, the deposits of £13,167,000 at the
end of the year 1913, remained about the same, or £13,870,000,
at the end of 1920. In the Trustee Savings Bank the figures for
June, 1913, and for the same month in 1921 were £2,633,000 and
£3,437,000 respectively.
Allowance must, of course, be made for the general in-
crease in values of commodities ; considering this, it was ap-
parent that while the cost of living in Great Britain — (much
higher than in Ireland) — increased between July, 1914, and July,
1920, at about 122 per cent, the deposits in the Joint Stock, Post
Office Savings Bank and Trustee Banks of Ireland increased 168
per cent. During the period June 30, 1913, to June 30, 1921, the
amount of British Government Stock held in Ireland grew from
£43,335,000 to £102,048,000, or 135 per cent. Between 1900 to
1910 the number of Irish Bank branches grew from 661 to 809
and in 1920 totalled 1255. It also was a fact that, in 1919, the
export trade of Ireland was £39 per head compared with £17 for
the United Kingdom and £1-10-11 for France; that between
1904 and 1919 the total Exports of Ireland had increased from
£49,785,000 to £176,033,000. In 1919, according to the Statesman's
Year Book, the Exports to England, alone, were £174,005,000; the
Imports from England were £132,374,000. There was, obviously,
no doubt of the value of the British market to Ireland and of
Irish supplies to England.
How far, therefore, was the Irish trouble at this time eco-
nomic? It was claimed, with much truth, that Ireland was
capable, within itself, of sustaining a population of 25,000,000;
that its revenues of $150,000,000— including Ulster — were more
than those of Sweden or Denmark, Greece, Bulgaria or Rou-
mania, Switzerland or Portugal; that it exceeded in area 10
European states and in population five other States and was not
much less in this respect than Australia ; that it was the natural
260
THE CANADIAN ANNUAL REVIEW
centre of intercourse between the Old World and the New and
commercially and strategically was the key of the Atlantic ; that
it produced or was capable of producing all the necessaries of
civilized human life and possessed more natural harbours for
vessels of the largest size than did all the remainder of Europe ;
that it owned one of the richest fishing areas in European waters
and produced more fuel (largely peat) than any Europeon coun-
try except Germany, Great Britain and France ; that there had
been no proportionate or reasonable development of the coun-
try; that in fact more repressive measures and laws had been
enacted in the past against Irish industries and commerce than
against the industries and commerce of all the other nations of
Europe together — including its cattle trade, its woollen trade,
its linen, tobacco, and glass trades ; that it was the only country
in Europe where famines had taken place while food was export-
ed and that it was a country made and kept poor by its Govern-
ment.
The other side of the case was that most of these troubles
were in the distant past ; that England was Ireland's nearest
and greatest market ; that Ulster had prospered in its industries ;
that in the years following 1815, although liberties of all kinds
were greatly restricted, Irish silks, linens, woollens, cottons,
glass, metal wares, etc., were of fine quality and in great de-
mand; that, up to the middle of the 19th Century, Irish agri-
culture was prosperous and that its decline up to the War-period
was due to much the same causes which affected the English
farmer — competition of the agricultural products of America or
Russia, Australia or Canada, together with the revolution
brought about in prices and transport by the invention and use
of steam ; that the one great and disastrous famine in Ireland
(1845-46) came from a potato blight, which extreme precipita-
tion, brought by moisture from the Atlantic, had caused; that
old-fashioned, inefficient and non-scientific methods were the
basis of much trouble in past agricultural production and that
modern methods, aided by a progressive Agricultural Depart-
ment and the success of the Co-operative movement had pro-
duced great changes, and War-time wealth, and would continue
to promote prosperity.
The Sinn Feiners of Ireland in 1920-21 were
not the first to fight in that country for what they
claimed to be freedom nor were they the first to
consider England as their bitterest enemy and
Ulster as the bar to all progress and independence.
There had been revolts in Ireland since the days of
Henry II ; the struggles of Cromwellian days, the
Rebellions of 1798 and 1848 and 1916 were the
most notable ; the efforts of United Irishmen, Repealers, Land
Leaguers, National Leaguers, Fenians, etc., were well known
at different periods. But the effort in these later years was
more organized, better supported, more widespread and the re-
The Sinn
Fein Posi-
tion and
War Action;
The British
or Loyalist
Reprisals.
SINN FEIN VIOLENCE AND BRITISH REPRISALS 261
suits more clearly defined than ever before. Back of the Sinn
Fein in Ireland were many sympathizers, out of about 1,000,000
Irishmen, in England; behind them also was much support in
speech, political agitation and in money from 1,000,000 Irish-
born and many millions of Irish descent in the United States ;
with them was much of sympathy, also speeches and varied
support, from groups of Irishmen in Canada and Australia. The
leadership was more vigorous and systematic than in the past
while the keen capacity and quick initiative of Arthur Griffith,
the excitable and vigorous propaganda of De Valera, and the
fighting earnestness of Michael Collins were elements of serious
import.
There wras, in 1920, a rapidly growing Irish Republican
Army of variously estimated numbers — some estimates running
as high as 100,000 men; as in all revolts against authority or
rule, whether external or internal, most of the lawless classes
in the community attached themselves to the revolutionary
body ; the Sinn Fein leaders and their Dail Eireann, or repub-
lican parliament, claimed that the situation at this time was a
state of war, and that this was excuse enough for the deeds of
violence which ensued ; it was claimed that British reprisals and
the alleged crimes of Black and Tan forces gave further right
and excuse for this violence. To get at the truth of what follow-
ed— even at this close range in time — is exceedingly difficult.
Politics, religion, and race, press despatches to the United
States which were coloured by the views of the writers and
readers, international animosities or prejudice, political consid-
erations in England, in Canada, in Australia, in the United
States, all helped to obscure the truth.
To read a British Conservative magazine called Gleanings
which, for 18 months, contained monthly lists of alleged out-
rages in Ireland covering many pages in length, and giving
exact details in time, place, name and nature, one would imagine
that country to be absolutely seething in misery and Sinn Fein
crime ; to glance over the current pages of the Liberal Magazine,
published along similar party lines, one could only believe that
if it were not for the cruelties of British reprisals and the crimes
of the Black and Tans, Ireland wpuld be a peaceful and a happy
country ! As a matter of fact, while many crimes and outrages
did occur, with small-sized battles and various conflicts of armed
forces, Ireland was economically prosperous and many parts of
the country were reasonably peaceful.
What was the Sinn Fein view? They wanted self-deter-
mination or the acknowledged right to establish a Republic, and
claimed that the people had voted for self-determination — and
a Republic — in the Elections of 1920 when 73 Sinn Feiners were
returned to the British Parliament, 6 Nationalists and 26 Union-
ists, with 971,945 votes cast for the Sinn Fein, 235,206 for Na-
tionalists and 308,713 for Unionists ; they protested against all
British rule, authority, right or power in Ireland as that of a
262 THE CANADIAN ANNUAL REVIEW
conqueror who must be driven out; they charged Great Britain
with cruelty, oppression, barbaric acts of warfare, despotism,
military crime, religious persecution ; they claimed the alleged
right of all racial entities or geographical units of people to an
independent government; they asserted that the political lead-
ers of the movement and directors of the organized bands of
fighters scattered throughout Ireland represented the Sinn Fein
voters of 1919 and were the de facto and de jure Government of
Ireland; they claimed that up to the beginning of 1919 all the
outrages and aggressive action and oppressive acts had been on
the part of the British and that, as Arthur Henderson, M.P.,
Radical Labour leader, alleged, there were in that year thou-
sands of armed Government raids upon a peaceful people.
They declared that Ulster was foreign in spirit and alien
in patriotism to the rest of Ireland; that it had been the chief
bar to a united Ireland in the days of Home Rule advocacy, in
the early days of the War and in later times of Republican
struggle; that England had during the past Century over-taxed
Ireland and the Irish; that the Home Rule Act of 1921 meant
the Partition of Ireland and the permanence of disunion, sus-
picion, hatred, war. Historically, they claimed, in the words of
the Dail Eireann's address of January, 1921, to Foreign Nations,
that "the Nation which we represent enjoyed for over 1,000
years the life of an independent Sovereign State among the
States of Europe," and that "then a neighbouring nation — Eng-
land— which had received the benefits of civilization and educa-
tion first from our hands, lost to gratitude and to honour, and
burning with lust for our possessions, burst in upon us as a con-
scienceless invader, and through the course of many generations
strove to subvert our industry, ruin our culture, steal our trade
and commerce, deprive us of the advantage of our geographical
position, cut us off from our ancient intercourse with other
people, rob our revenues, and erase our name from the roll of
Nations." The current situation was described with similar
vigour of denunciation and the patience of the people as at last
being exhausted. Comment upon the history embodied in this
document is unnecessary here but the statement is interesting as
showing the point of view.
It was alleged that in 1917-18 there were 1456 arrests for
political offences, 115 persons deported without trial, and 99
gatherings of unarmed men and women suppressed by the mili-
tary; that in 1919 it became difficult for the Government to re-
cruit for the Royal Irish Constabulary in Ireland and that an
office was opened in London and soldiers of the World War en-
listed, with khaki uniforms and black caps ; that from the
time these "Black and Tans" reached Ireland the Police force
discipline broke down and a series of Police crimes commenced ;
that in July, 1920. another irregular force, composed of men who
had held commissions in the War, was created and termed the
Military Division, while the Restoration of Order Act, passed
SINN FEIN VIOLENCE AND BRITISH REPRISALS 263
shortly afterwards, suspended ordinary law and placed the
people at the mercy of the military and police. The situation
which developed in the ensuing year was known in broad out-
lines to the world; in its details it would require volumes to
adequately describe. The Irish press teemed with stories of
crime and incidents of outrage ; parts of the British press re-
produced them while other portions ignored them entirely; the
despatches to America picked them out here and there and in-
cluded the worst.
Law was not enforced in the disturbed parts of Ireland,
juries feared to convict a Sinn Feiner and crime was rarely pun-
ished ; Sinn Fein Courts gradually developed and tried cases of
theft and minor offences with a measure of justice. The verdict
of the Cork jury (Apr. 17, 1920) on the murder of Lord Mayor
McCurtain illustrated one difficulty of the situation : "The mur-
der was organized and carried out by Royal Irish Constabulary,
officially directed by the British Government." The verdict was
"wilful murder" against the Prime Minister of England and the
Viceroy. During these months detailed lists of murders of con-
stables, magistrates, caretakers, etc., increased gfreatly; at-
tempted murders of policemen, attacks on individuals, on bar-
racks, on patrols, on cattle, on post offices, on mail cars, on
trains, on inland revenue offices, on Government buildings of all
kinds, were many with 200 police barracks destroyed. In April
and May and June similar incidents trebled in number. During
1919 official (British) figures had given the total of these of-
fences or crimes at 590; in January-April, 1920, they were said
to number 1220.
In August Sir Hamar Greenwood, Chief Secretary for Ire-
land, passed the Restoration of Order Act and in his explana-
tion (Aug. 5, 1920) stated that: "This Bill does not supersede
trial by jury or the ordinary administration of the criminal or
civil courts. It is intended to apply only in those disturbed
areas, at the discretion of the Irish Government, where it is im-
possible for the ordinary tribunals to function and I can assure
the House that this discretion will be used with the sole con-
sideration of meting out justice to the people of the disturbed
areas involved." As illustrating the difficulties of the situation,
he quoted a recent letter addressed to jurors in Waterford:
"Take notice that it has come to my knowledge that you have
been summoned as a juror at the forthcoming assizes. Now be
it known to you that to obey such summons will be considered
an act of treason against the Irish Republic, and you are hereby
warned that you will do it at your peril. — The Competent Mili-
tary Authority of the Irish Republican Army." Mr. Bonar Law,
on "the same date, told the Commons that during the 5 weeks
ending July 31st, 17 Court-houses and 85 Police barracks had
been destroyed, with 114 raids on mails — apart from murders
of policemen, etc.
Toward the close of 1920 the area of Sinn Fein operations
widened and Cork, Limerick, Tipperary and Kerry were placed
264 THE CANADIAN ANNUAL REVIEW
under martial law ; in Dublin on Nov. 21 a gang of desperadoes —
never accurately identified — forced their way into the Gresham
Hotel, Dublin, and some private residences, and shpt to death
14 officers and civilians connected with Court Martial proceed-
ings against Sinn Feiners and wounded five others ; Cork was
again the scene of wild disorder and (Nov. 28) 17 cadets of the
Auxiliary force were ambushed and killed; on Dec. 11 at Dillon's
Cross, near Cork, two lorries full of military police were am-
bushed and many wounded by bombs and rifles ; a series of al-
leged Sinn Fein fires broke out in Liverpool docks on Nov. 24
throughout an area of 7 miles. On Nov. 22 Eamonn de Valera,
"President of the Irish Republic," issued a statement declaring
the killing of constabulary an act of warfare : "No British
soldier has a right to be in Ireland. Those who are there are
guilty of making war, not a civilized war, but a barbarous war,
on people who are guilty of no act of aggression against Eng-
land, xxx Perfect peace between Ireland and Britain can be
brought about within 24 hours by the withdrawal of these
troops."
Following this, Arthur Griffith and other Sinn Fein leaders
were arrested (Nov. 26) and sent to Mountjoy Prison; a series
of alleged Sinn Fein incendiary fires broke out in England — in
Manchester factories, on Lancashire and Cheshire farms, in the
Liverpool district, etc. ; on May 14 armed and masked men were
concerned in shootings and burnings in London, St. Albans and
Liverpool. A Parliamentary paper of Mch. 3rd stated that in
13 weeks, from Oct. 3, 1920, to Jan. 1, 1921, there had been 1,557
"outrages" in Ireland of which 958 were attacks on property
and 599 on persons. Up to June 11, when the Truce commenced
Ireland saw a steady persistence of violent acts ; during two
weeks of May and two of June there were 55 military con-
stables killed and 32 others shot dead or found killed and a still
larger number wounded. From Jan. 1st, 1919, to May 7, 1921,
the total number — according to Government official statements
— of alleged Sinn Fein outrages included 309 Policemen killed
and 491 wounded; 102 soldiers killed and 238 wounded; 124
Civilians killed and 159 wounded — excluding the Belfast riots of
June-September, 1920; 75 Court-houses destroyed and 826
R. I. C. barracks destroyed or damaged; 1,734 raids on mails
and 58 on coastguard stations and light-houses ; 3,138 raids for
arms and 102 upon Government offices. On May 25 the famous
Dublin Court-House was destroyed by fire as a military opera-
tion ordered by the Dail Eireann ; it was one of the finest build-
ings in Ireland and erected in 1785 at a cost of $2,000,000; the
loss in documents and Government valuables was put at $10,-
000,000.
British Reprisals and the Sinn Fein. A large part of this
record of violence was defended by the Sinn Fein as being acts
of warfare and made necessary by oppression and deeds of Gov-
ernment reprisal. To a certain extent, and in some cases, reprisals
SINN FEIN VIOLENCE AND BRITISH REPRISALS 265
by irregular forces were admitted. The first appears to have
taken place on Sept. 9, 1919, following the murder of a soldier
at Fermoy and when, according to Sir H. Greenwood in the
Commons (Feb. 21, 1921) 10 policemen had been murdered
and 15 wounded by Sinn Feiners. The operations at Balbriggan,
where on Sept. 21, 1920, following the shooting of two con-
stables, 150 men visited the town at night, destroyed the cot-
tages and a large factory and killed two persons ; the attack
on Trun (Sept. 26), the reprisals on Mallow (Sept. 29) and at
Tubercurry on Oct. 2nd, were admitted and referred to by Mr.
Lloyd George at Carnarvon on Oct. 11, following, as "deplor-
able excesses."
Mr. Asquith and Lord Morley and Sir John Simon and
other Liberals denounced these events as atrocities and com-
pared the condition of Ireland to that of Belgium under the Ger-
mans. The Daily News and Manchester Guardian and Daily
Herald (Socialist) indulged in vigorous denunciation of the
Government along these lines, while Government speakers
claimed that events very often made it impossible to avoid
something of the kind. The Lord Chancellor (Lord Birken-
head) stated in Parliament on Feb. 22, 1921, as a sample cause
of such acts, that near Eneristymon, Co. Clare, on Sept. 22, 1920,
a party of six police were ambushed; that four were killed by
explosive bullets at close quarters ; that the other two crawled
to the shelter of a hedge but were pulled out and killed with
shot-guns.
There was no doubt as to the fact of reprisals — whatever
might be the provocation. The County Judge of Clare (Mr.
Bodkin, K.C.) in a report addressed to the Chief Secretary, stated
early in 1921 that : "I beg to report that there came before me
at the Hilary Sessions for the County of Clare 356 claims for
compensation for criminal injury amounting in all to over
£466,000. In a very large number of these cases it was alleged
that the criminal injuries had been committed by the armed
forces of the Government, x x x The total amount of the
awards in cases in which it was proved that Government forces
committed the criminal injuries amounted to £187,046 19s. 3d.
There were in all 139 cases in which it was proved that the
criminal injuries were committed by armed forces of the Gov-
ernment." Sir Hamar Greenwood declared (Feb. 21) that this
was a partisan document and asked the Judge about the 28
murders which had taken place before the burning of the three
villages with which he chiefly dealt ! His general defence as
stated in a Message to the Pall Mall Gazette on Sept. 30, 1920,
was, that : "There is no truth in the allegations that the Govern-
ment connive at or support reprisals. The Government con-
demn reprisals, have issued orders condemning them, and have
taken steps to prevent them. The number of alleged reprisals
is few and the damage done exaggerated."
Meanwhile, under date of Mch. 6, 1921, Cardinal Bourne of
England had taken up the question of reprisals and written the
266 THE CANADIAN ANNUAL REVIEW
Prime Minister expressing the "grave concern" of Catholic
Bishops in England as to the situation, the need for stopping all
reprisals and initiating a permanent reconciliation. The Labour
Party's investigation of Irish conditions toward the close of
1920 was unstinting in its condemnation and declared that "ter-
rorism and outrage on the part of members of the Forces of
the Crown in Ireland are condoned, defended and justified." In
the British Commons on Mch. 21, 1921, Lord Robert Cecil (Ind.)
denounced the Reprisals policy and the Black and Tans —
especially for alleged crimes committed in and around Drogheda.
He quoted a letter from Cardinal Logue to the Bishop of South-
wark as to conditions in Armagh : "With the assistance of the
priests, I have done my best to keep things quiet in this Diocese.
Hitherto we have had comparative peace, but the forces of the
Crown seem determined that we shall suffer like the rest.
There is a group of Black and Tans at Gormanstown, on the
borders of the Diocese, and while that camp remains we may
give up all hopes of peace or safety. It seems to be a nest of
bandits and homicides."
Lord Robert also read from the Lenten Pastoral of the
Bishop of Killaloe declaring that "the heroism with which people
face and endure this daily martyrdom is a spiritual marvel.
Nothing but the supreme and sustaining power of faith can ex-
plain it. No one wants violence, but even though the violence
complained of on the Irish side were infinitely greater than it
is, it would not justify the savage barbarity now practiced on
our people, innocent and guilty alike." In April a document was
presented to the Prime Minister signed by 8 Bishops of the
Church of England, the Chairmen of several great religious
bodies, and the Moderator of the Presbyterian Church of Eng-
land and the President of the Wesleyan Methodist Conference.
In it these distinguished clergymen denounced "the absolute un-
lawfulness of the attempt to overcome wrong, however flagrant
and provocative, by means of further and indefensible wrong."
The additional statement was made that the Government's
present policy was causing "grave unrest throughout the Em-
pire and exposing us to misunderstanding and the hostile criti-
cism even of the most friendly of the nations of the world."
In the Lords on Apr. 26 Lord Parmoor, K.C.V.O., read a letter
from his brother, as to the Castleconnell Hotel attack by 60
Black and Tans who, the letter declared, behaved like Red
Indians ; he had witnessed the incident and the murder of the
landlord of the Hotel. Lord Parmoor demanded an enquiry,
which the Government stated was being held. H. W. Massing-
ham and other Radical English writers were bitter in their de-
nunciation of these reprisals ; Mr. Massingham in the London
Nation on Mch. 19 drew a vivid picture of alleged conditions and
compared the Black and Tans to the Hessians of old — with "a
free hand in the persecution of the Irish peasants." As proof,
he cited these facts: "In the R. I. C. there have been 2,197
SINN FEIN VIOLENCE AND BRITISH REPRISALS
267
resignations ; 226 dismissals ; 19 court-martial cases, in 16 of
which the finding was against the accused. In the Auxiliary
Division there have been 131 resignations, 33 dismissals, 15
court-martial cases, 8 cases in which the finding has been against
the accused." The most notable official admission was that of
Lord FitzAlan, the new Lord Lieutenant of Ireland, and a leading
English Catholic who, at a Belfast luncheon on June 7, after de-
nouncing the growing indifference to the crime of murder, said :
The force in this country commonly called the Black and Tans are
accused of committing serious and grave crimes. Yes ; but it is unjust
to say that because crimes have been committed the whole force should
be, so to speak, charged as being guilty of those crimes. This is not
justice. It is true — let us be frank about these things — that crimes, hor-
rible crimes, have been committed by members of this force. You may
find explanations, but there is no excuse for any force committing these
crimes. Provocation? Yes. Explanation? Yes. This force was hastily
enlisted" and hurriedly set to work without proper discipline. Mistakes,
no doubt, have been made owing, perhaps, to the great hurry. None the
less these crimes have been committed.
Such is a brief survey of the Sinn Fein case. Between 1918
and 1921 the statistics of crime in Ireland were given variously
as from 8,000 to 10,000. In the Commons (Times, Feb. 25, 1921)
Sir H. Greenwood gave the figures of alleged Sinn Fein out-
rages as follows: 1918, 609; 1919, 599; 1920, 9,171; January,
1921, 575 — total 10,954. How many of these were acts of irregu-
lar Sinn Fein forces and not of the Irish Republican Army will
never be known ; that any of them were or could be considered
acts of war was scouted by the Loyalists and the Government.
That they were, for a time, effective, was obvious by the situa-
tion which Mr. Lloyd George described during a speech in the
Commons on Feb. 15, 1921 — as existing in July, 1920: "The Irish
Republican organization had all the symbols, and they had all
the realities of a Government. The Courts of the Crown were
superseded. They were deserted by witnesses ; they were boy-
cotted by jurors. Jurors never came there, and litigants never
appeared. Sinn Fein courts were held openly, attended by liti-
gants, jurors and advocates, and their decisions were respected.
The Sinn Fein police patrolled the towns. The head of our
Police told me how, when he went there, he was held up by a
Sinn Fein police patrol. That is six months ago. The police
were besieged in their barracks. There were 600 of them mur-
dered. They could hardly ever go out. They were boycotted;
they were insulted. Their wives and children were boycotted
and insulted. The necessaries of life were denied them."
He then described the great change which had since taken
place and which he credited to a strong coercive policy. The
situation was practically war, yet it was not war in any recog-
nized international sense ; there were few actual conflicts be-
tween armed bodies, though there were some ; the bands were
of the guerilla type and akin to those which made the Boer war
so difficult and so lengthy — they resembled those of Carlist up-
268 THE CANADIAN ANNUAL REVIEW
risings in Spain and in some of the South American insurrections.
On the other hand, as the New York Tribune (May 18, 1921),
put it : "The conduct of the British forces has not been the con-
duct of an army conducting regular military operations ; it has
been police work, under martial law, to restore order, and it can
function only upon the appearance of undisguised disorder."
The general British reply as to reprisals was (1) that all stories
of reprisals come from a "tainted source" — the Sinn Fein pro-
paganda department; (2) that reprisals were often alleged
against police and soldiers acting in self-defence; (3) that law-
lessness by men in the uniforms of the Army or Police was not
necessarily the work of soldiers or policemen. Sinn Fein had
stolen many sets of uniforms, and was not adverse, it was
alleged, to committing crimes when disguised in Army or Police
dress.
Back of all the disorder of the period, however, was trie fact
which made peace with honour possible — the fact that the mass
of the Irish peasantry passionately loved their country and
loved what they believed to be liberty better than the peace
and quietness of life. Crime might be there, bitter misunder-
standings might exist, past sufferings be cherished until hatreds
were engendered; but, they really wanted national rights and
national unity and, without quite knowing it, British compre-
hension of their ideals and idealism. Had Home Rule been given
them in 1914-15 there would, it is safe to say, have been no Re-
bellion in 1916, no refusal of Conscription there or in Aus-
tralia ; the splendid troops they did send to the front, and in a
degree more numerous than is generally believed, would have
been multiplied many times ; Ulster would, in the end, have had
little to regret and the extremists in both North and South
would have found their level. But there was a longer and
more bitter road to travel before Irish unity and freedom could
be achieved.
The English people did not understand the
The British Irish situation but there were certain things which
y ie.w j _, they believed, or thought they knew, as an outcome
BritUh * GOT- of the lon& Political struggle over Home Rule. The
emment and great Protestant majority of the English people
Sinn Fein. were told, and in the main believed, that the Irish
Parliament of 1800 had abused its powers and
position and deserved abolition ; that the troubles which follow-
ed were not caused by lack of a Parliament, but by differences
between Protestants and Catholics ; that oppression and mis-
government of which the Irish complained, were, in any case,
matters of another century, and now far distant, with faults on
both sides ; that the United Kingdom had, at the Union, assumed
a National Debt of £147,000,000 on which Ireland had since paid
nothing but the interest ; that England had since assumed large
liabilities in respect to Loans made to enable the Irish tiller of the
BRITISH VIEWS OF IRELAND; BRITISH GOVERNMENT POLICY 269
soil to own his land ; that during the Napoleonic wars from 1801
onwards, a total of over £300,000,000 had been raised by Great
Britain in respect to the war taxes of that period with Ireland
exempted from all liability ; that during the World War England
had to keep 50,000 troops in Ireland who were badly needed else-
where and to relieve the Irish from nearly all restrictions under
the Defence of the Realm Act; that Ireland had representation
in the British Parliament as did England, Wales and Scotland,
and a far-reaching influence upon politics and the life of Gov-
ernments ; that the Irish people had retained all their Imperial
representation despite decreasing population and, latterly, had
one member to 43,000 people while England had one to 70,000
persons.
It was claimed that, along economic lines, British legisla-
tion of the past century had been for the betterment of Irish
conditions, the monetary support of the people, and social im-
provement generally; that by the Land Act of 1870 compensa-
tion was granted to tenants for arbitrary eviction and for im-
provements effected — with certain facilities to tenants for the
purchase of holdings ; that 1881 amendments to this Act con-
ferred on Irish tenants the right of fair rent — to be fixed by a
Court, if desired — with fixity of tenure through a certain right
in holdings which forbade arbitrary eviction without compensa-
tion and gave the right of sale under certain conditions ; that
this 1881 legislation empowered a Land Commission to advance
loans to tenants not exceeding three-fourths of the value of
holdings to be repayable at 5 per cent, interest within 35 years ;
that the Land Acts of 1887 and 1896 extended these privileges
or rights while the Land Purchase Act of 1891 supplied the Land
Commission with further funds for advances to tenants in the
purchase of holdings ; that this Act was amended in 1903 to en-
able tenants to buy the farms and become entirely independent
of landlords with payments upon the installment plan — the seller
accepting a mortgage for a term of years and the Government
guaranteeing part payment at current rates of interest.
Many of these beliefs and claims were justified by the facts,
others were somewhat distorted ; but right or wrong, they were
the basis upon which Home Rule was for long regarded as a
negligible issue, as the creation of politicians and agitators, or
the outcome of religious differences and prejudices. The out-
standing feature of the situation in the World War was the
English inability to understand that trusting people of a Celtic
temperament would almost certainly win their support and
sympathy ; that had Ulster waived its fears and objections Red-
mond would have been the loyal leader of a united people and
De Valera, perhaps, never heard of. But the crucial moment
passed, the Home Rule Act was hung up, suspicion and doubt
developed into hostility, the Rebellion of 1916 sowed new seeds
of enmity and the Irish Republican Army of 1921 was a final
fact. Upon two points Great Britain was convinced even in
270 THE CANADIAN ANNUAL REVIEW
the latter days of alternate negotiation and civil strife — (1) that
if Southern Ireland had a right to any form of self-determina-
tion or Home Rule so had Ulster and (2) that an independent
Irish Republic would be a menace to England's National security.
Behind all the Government's policy and Lloyd George's pro-
nouncements were these basic beliefs. As to the latter point,
Admiral A. T. Mahon, the great American Naval writer, was
quoted as follows :
Practically regarded, it is impossible for a military man, or a states-
man with appreciation of military conditions, to look at the map and
not perceive that the ambition of Irish separatists, if realized, would be
even more threatening to the national life of Great Britain than the
secession of the South was to the American Union. It would be deadlier
also to Imperial aspirations; for Ireland, by geographical position, lies
across and controls the communications of Great Britain with all the
outside world, save only that considerable but far from preponderant
portion which borders the North Sea and the Baltic. Independent and
hostile, it would manacle Great Britain.
Upon the revolt which developed in 1920-21 and the subject
of reprisals the British Government view was definite. It was
claimed to be a peculiar and exceptional kind of warfare. As
General Sir Nevil Macready, Commander-in-Chief in Ireland,
stated — according to a quotation in a Court of King's Bench
judgment on Feb. 25, 1921 : "The scheme of the said warfare
does not entail fighting in distinctive uniforms, or in accordance
with the laws of war, but under a system of guerilla attacks in
which inhabitants, apparently pursuing peaceful avocations,
constantly come together and carry out guerilla operations
which often result in the death of, or serious injuries to, mem-
bers of His Majesty's forces at the hands of people who are
posing as peaceful citizens." In the Commons on Oct. 20, 1920,
Sir Hamar Greenwood quoted the following I. R. A. official
order as to Police or Soldiers : "Small groups of snipers should
be posted so as to cover their line of advance, ready, as soon as
opportunity offers, to direct an effective fire on them. If pos-
sible, they should be cut off from their base, and annihilated."
The reply to this was by instructions given to the Con-
stabulary and quoted, as follows, by Denis Henry, Irish At-
torney-General (Commons, June 22, 1920) : "They are to be-
have in precisely the same way as they would do on a field of
battle. If they have reason to suspect that a person approach-
ing them is in possession of deadly weapons, they are to call
upon him to put up his hands and, failing his doing so, they are
to fire upon him." In General Macready's Proclamation as to
Martial Law in 4 Counties of Ireland (Dec. 12, 1920) he used
these words : "Great Britain has no quarrel with Irishmen ; her
sole quarrel is with crime, outrage and disorder; her sole object
in declaring martial law is to restore peace to a distracted and
unhappy country; her sole enemies are those who have coun-
tenanced, inspired and participated in rebellion, murder and out-
rage." As to reprisals, Sir H. Greenwood quoted an order in
BRITISH VIEWS OF IRELAND; BRITISH GOVERNMENT POLICY 271
the Commons on June 1st, 1921, which he had issued on Dec. 4
preceding; it applied to all Ireland, and declared that, whatever
the provocation, "the only justification of the burning and de-
struction of buildings is that they are used as shelters for am-
bushes or for firing on the forces of the Crown." Reprisals, he
added, had never been encouraged, or condoned, but had always
been condemned, and many people had been severely disciplined
because of unofficial reprisals. The Government's defence was
reiterated by Mr. Lloyd George in his reply to the Bishop of
Chelmsford and others on Apr. 20, 1921 :
Can it be contended that when a rebel organization, which is based
on the repudiation of constitutional action in favour of violence, sets to
work to achieve its ends by the deliberate and calculated murder of the
members of a Police force, 99 per cent, of whom are Irish, and 82 per
cent, of whom are Roman Catholic, which has always held an extra-
ordinarily high reputation for tolerance and good-will to the population
it served, that the Government should stand idly by? x x x That
there have been deplorable excesses I will not attempt to deny. In-
dividuals working under conditions of extraordinary personal danger
and strain, where they are in uniform and their adversaries mingle un-
recognizably among the ordinary civilian population, have undoubtedly
been guilty of unjustifiable acts. A certain number of undesirables have
got into the Corps, and in the earlier days discipline in the novel and
exacting conditions took some time to establish.
It was claimed in Great Britain that the movement was one
of secret murder and not open warfare ; that Irishmen dared not
testify in trials because of the danger of being shot ; that the
leaders of Sinn Fein were not pure Irish — De Valera, an Ameri-
can citizen born in New York, the son of a Spanish father and
Irish mother, Griffith a Welshman, Padraic Pearse the son of
an Englishman and Irish mother, Thomas Johnstone, the Labour
leader, and Erskine Childers and Dr. Smith Gordon — all English-
men ; that there were absolute proofs of a Sinn Fein plot to aid
the Germans and these were made public in a State paper with
a later admission of their truth by Miss McSwiney in her evid-
ence before the Villard Committee at Washington in January,
1921 ; that Mr. de Valera had negotiated a Treaty with the Soviet
Government of Russia — the text being seized by Government
troops and published on June 9, 1921.
As to Sinn Fein in general Mr. Lloyd George presented his
view as follows (Apr. 20, 1921) : "Sinn Fein rejected Home
Rule and demanded in its place an Irish Republic for the whole
of Ireland. Sinn Fein went further; it deliberately set to work
to destroy conciliation and constitutional methods, because it
recognized that violence was the only method by which it could
realize a Republic. The Rebellion of 1916 was its first blow to
conciliation and reason. Its refusal to take part in the Conven-
tion was the second. Its proclamation of a Republic by the
Dail Eireann and abstention from Westminster was the third.
Its inauguration of the policy of murder and assassination in
order to defeat Home Rule, rather than to discuss the Home
Rule Bill in Parliament or enter upon direct conference outside,
272 THE CANADIAN ANNUAL REVIEW
was the fourth." He and the Government claimed the issue to
be between Secession and Union and, over and over again, de-
clared that they would not compromise on that issue, nor would
they coerce Ulster.
Government speakers quoted stories of alleged Sinn Fein
crime from Ireland which carried horror to the hearers ; Liberal
speakers quoted tales of ghastly reprisal. One of the former
is thus described in a Dublin despatch to the New York Tribune,
Apr. 18, 1921 : "Kitty MacCarron, who was about 45 years old,
lived with her parents, octogenarians, in a wild and mountainous
part of Monaghan. About midnight a party of masked men en-
tered, fastened her hands behind her back and led her, pleading
pitifully, about a mile to the main road, by the side of which the
body was afterward found with a bullet wound through the
cheek, which is the customary sign of Sinn Fein executions. A
card on the body was inscribed : 'Spies and informers, beware !
Tried, convicted and executed by the Irish Republican Army.' '
Ulster originated as a distinctive community
The Position in the reign of James I. English and Scotch set-
of Ulster; A tiers were then shipped into the country in large
ment \3l numbers and finally constituted the so-called Plan-
New Con- tation of Ulster ; they had been coming in gradual-
ditions. ly under special charters and grants of land during
two preceding reigns ; they were, as a rule, Protest-
ants and found themselves mixed up with native Irish Catholics
and beside a large population, to the south, of that race and faith.
The Siege of Derry and the days of Cromwell gave them a first
lease of real power and embedded militant Protestantism in
their creed of Patriotism. Their development was slow but
steady and they were especially successful along certain lines of
industry ; their temperament was the business one characteristic
of England and Scotland rather than of Ireland, and their suc-
cess was of a commercial nature based upon similar conditions
and capacity.
The population of the Province was, at the 1911 Census, 1,581,-
696 of which 690,816 were Roman Catholics with majorities of
that faith in the counties of Cavan, Donegal, Fermanagh, Mona-
ghan and Tyrone ; there were Protestant majorities in Antrim,
Armagh, Down, Londonderry ; by the 1920 Government of Ireland
Act the County of Monaghan, with 53,363 Catholic population to
18,092 non-Catholic, Cavan with 74,271 Catholic to 16,900 non-
Catholic and Donegal with 133,021 and 35,516, respectively, were
omitted from the new Ulster, which totalled, roughly, 820,372
Protestants and 430,161 Catholics. The acreage of Ulster (9
Counties) was 5,331,626 compared with 4,847,731 in Leinster,
5,963,556 in Munster and 4,228,211 in Connaught. There was no
doubt in the later years as to the greater wealth of Ulster com-
pared with Southern Ireland and, in recognition of this fact,
the Home Rule Act of 1920 provided that this Province should
THE POSITION OF ULSTER; ITS PARLIAMENT AND CONSTITUTION 273
pay 45 per cent, of the total sum to be contributed by Ireland to
the Imperial Exchequer though its population was only one-
third. According to a careful editorial comparison of North and
South Ireland in the New York Tribune (July 8, 1921) the facts
were as follows :
Details seem to support the general conclusion that Ulster is rela-
tively the richer and more progressive. The valuation of the Province
is $38,000,000 and of the rest of Ireland $58,000,000. Ulster's taxes, as
levied by local authority in both cases, are lower. The foreign trade of
Ulster's ports in 1920 aggregated $35,000,000 in value and that of the
ports of the rest of Ireland was substantially the same in amount. The
factories of Ulster turn out goods of twice the value of the product of
the rest of the Island. Nor does this mean neglect of agriculture, for
Ulster has 1,728,436 acres under cultivation, against 3,598,000 acres in
Southern Ireland. The Savings Bank figures suggest that Ulster is
much the more thrifty, and in the fields of education, literacy, and the
like the comparison is even more strongly in Ulster's favour.
In these later years of turmoil, however, an essential feature
of the situation lay in the aggressive Protestantism of Ulster or
of that portion which supported this faith. It was of the Scotch
type — determined, strong and deep-seated in a tradition and
patriotism which were Scotch more than Irish; the opposing
Catholicism was equally rooted in the past, in traditions, also, of
persecution and was associated with a temperament which, in
an eminent degree, combined religious faith with love of
the land as a purely local patriotism. Religion was not the sole
cause of current troubles but the divergence in belief, added to
racial differences and the traditional animosities of the past,
helped to provide the atmosphere of suspicion out of which came
much of the hostile spirit and action of the time.
The majority in Ulster claimed that Ireland had never been
a united nation and that its original divisions had been separate
entities under semi-independent Kings ; that the Scotch-Irish of
Ulster were a distinct race with affiliation to Scotland rather
than with Southern Ireland; that all the arguments for Home
Rule and self-determination as against Great Britain applied
with equal force to Ulster as against the South ; that instead
of Ireland being over-taxed by Great Britain it was the other
way about through British expenditures in Ireland and British
assumption of the Irish Debt of $735,000,000 in 1817; that less
than 5,000 men were at the back of the crime-wave of 1920 and
the Republican force effort and that these were maintained by
American money ; that majority rule in a united Ireland would
mean determined efforts to control Education and levy taxation
in the interest of the dominant faith; that Ulster was tolerant
to its local minority as shown by the fact that at the close of
1920 the Roman Catholic population had 112 representatives on
County Councils and the Protestant voters 123. Such were the
contentions of Ulster and the Ulster spirit at the back of the
Covenant which its Protestant people took in 1912 under the
leadership of Sir Edward Carson:
10
274 THE CANADIAN ANNUAL REVIEW
Being convinced in our consciences that (all-Ireland) Home Rule
would be disastrous to the material well-being of Ulster, as well as the
whole of Ireland, subversive of our civil and religious freedom, de-
structive of our citizenship, ^nd perilous to the unity of the Empire, we,
whose names are undersigned, men of Ulster, loyal subjects of His
Gracious Majesty King George V, humbly relying on the God Whom
our fathers in days of stress and trial confidently trusted, do hereby
pledge ourselves in solemn Covenant, through this our time of threat-
ened calamity, to stand by one another in defending for ourselves and
our children our cherished position of equal citizenship in the United
Kingdom, and in using all means that may be found necessary to defeat
the present conspiracy to set up a Home Rule Parliament in Ireland.
And in the event of such a Parliament being forced upon us we further
solemnly and mutually pledge ourselves to refuse to recognize its
authority.
With the enactment and partial realization of Home Rule,
Ulster became a Dominion of the Empire ; Southern Irish lead-
ers refused the status but elected members to the new Southern
Parliament so as to show a decisive majority against it and, at
the same time, prevent it from sitting or acting. Lord Edmund
Talbot, President of the English Catholic Union and a brother
of the late Duke of Norfolk, was appointed Lord Lieutenant of
Northern and Southern Ireland and created Viscount FitzAlan;
Sir Edward Carson refused the Premiership of Ulster and ac-
cepted the post of Lord Justice of Appeal with a Peerage while
Sir James Craig, M.P., became leader and Prime Minister. The
Gevernment of Ireland Act came into operation on May 3rd,
1921, and the Elections took place on May 31 with two appeals
to the Ulster electorate backed by the Union Jack and Repub-
lican tri-colour respectively. Sir James Craig urged his follow-
ers to: "Rally round me that I may shatter our enemies and
their hopes of a Republic flag. The Union Jack must sweep the
polls. Vote early, work late. The eyes of our friends through-
out the Empire are upon us. Let them see that we are as deter-
mined as they to uphold the cause of loyalty."
Mr. de Valera issued the following: "Vote to-morrow
against war with your fellow-countrymen. Vote that brother's
hand may not have to be raised against brother's. Vote so that
there may be an end to boycott and retaliation, to partition,
disunion and ruin. Make a genuine people's peace. Live in
history as having created a truly united Irish nation." The re-
sult (May 24) showed a Unionist majority with (unofficial but
approximately correct figures of) 341,289 Unionist votes, and
4,000 more to be added from University polling on May 28, to
103,516 Sinn Fein and 4,763 scattering. The Unionists held 40
seats against 6 Nationalists and 6 Sinn Fein but the latter, in-
cluding Arthur Griffith, did not take their seats. Arrangements
were at once made to invite the King and Queen Mary to open
the new Parliament on June 22nd and the invitation was accept-
ed. Despite fears as to the personal safety of Their Majesties,
and riots which developed in Belfast on June 14, they were given
a great reception and the ceremony was one of brilliant effect-
THE POSITION OF ULSTER; ITS PARLIAMENT AND CONSTITUTION 275
iveness. In his Speech to the new Parliament King George used
language which was widely quoted and discussed:
For all who love Ireland, as I do with all my heart, this is a pro-
foundly moving occasion in Irish history. I could not have allowed my-
self to give Ireland by deputy alone my earnest prayers and good wishes
in the new era which opens with this ceremony, and, therefore, I came
in person, as head of the Empire, to inaugurate the Parliament on Irish
soil, xxx This is a great and critical occasion in the history of six
Counties, but not for the six Counties alone, for everything which in-
terests them touches Ireland, and everything which touches Ireland
finds an echo in the remotest parts of the Empire. Few things are more
earnestly desired throughout the English-speaking world than a satis-
factory solution of the age-long Irish problems which for generations
embarrassed our forefathers as they now weigh heavily upon us.
Most certainly there is no wish nearer my own heart than that
every man of Irish birth, whatever his creed and wherever may be his
home, should work in loyal co-operation with the free communities on
which the British Empire is based, xxx The eyes of the whole
Empire are on Ireland to-day, that Empire in which so many nations
and races have come together, in spite of ancient feuds, and in which
new nations have come to birth within the lifetime of the youngest in
this hall. I am emboldened by the thought to look beyond the sorrow
and anxiety which have clouded of late my vision of Irish affairs. I
speak from a full heart when I pray that my coming to Ireland to-day
may prove to be the first step toward an end of strife among her people,
whatever their race or creed. In that hope I appeal to all Irishmen to
pause, to stretch out the hand of forbearance and conciliation, to for-
give and to forget, and to join in making for the land which they love a
new era of peace, contentment and good-will.
The Government of Ulster, as it met the Parliament, includ-
ed Rt. Hon. Sir James Craig, Bart., Prime Minister; Rt. Hon.
H. M. Pollock, Finance ; Rt. Hon. Sir R. D. Bates, Home Affairs ;
Rt. Hon. J. M. Andrews, Labour; the Marquess of London-
derry, Education ; Rt. Hon. E. M. Archdale, Agriculture and
Commerce. The Senate was elected by the Northern House of
Commons and included six Peers, three Labour Unionists, the
Mayors of Belfast and Londonderry, ex-officio, and 15 others
with the Marquess of Dufferin and Ava as Speaker. During
ensuing months of the year while Conferences were being held
and negotiations proceeding, Ulster was the scene of many
murders and crimes, and Belfast of varied riots and fierce fight-
ing and criminal inter-change between the rival factions ; there
was, also, much unemployment due, in part, to general depression
but helped, also, by Southern trade boycotts. Toward the end
of 1921 Ulster was losing much of its market in the South — by
cancellation of contracts, Sinn Fein blacklists and merchants'
refusal to renew orders. While the negotiations of this period
were going on, Lord Carson maintained his old opinions and at-
titude of "No Surrender." In the Lords on Dec. 15 he bitterly
denounced the Coalition Government and the Act of 1920:
I defy anybody to show me anything in that document but one pro-
vision, and that is that Great Britain should scuttle out of Ireland. You
may talk of a Free State, you may put window dressing in about status
of the Colonies, but from the beginning to the end of this document
there is nothing except that England, beaten to her knees by the guns
276 THE CANADIAN ANNUAL REVIEW
of the assassins, says : 'We are willing to scuttle out of Ireland and
leave to the tender mercies of the assassins everybody who has support-
ed us.' "
The Roman Catholic Church at this period had
The Church a most difficult part to play. Its faith, upon the
of the ^ Ma- whole, was the faith of the Sinn Feiners, many
Ireland-1 Its younS men °^ ^s parishes throughout Southern
Official ' Ireland were in the Irish Republican Army; with
Attitude the exception of a very few, the Irish leaders in
in 1920-21. the movement were of the Church as were its chief
supporters in the United States; in Australia and
Canada the Irish Catholics were divided and, very largely, the
English adherents of the Church were opposed to Sinn Fein
doctrines. A few of the Bishops and some of the priests ap-
parently were in sympathy with the Republican movement ; of-
fiicially and vigorously the Church was opposed to all outrage,
crime, rebellion.
So far as the troubles of these years were reported in the
press, they did not indicate religion as being the chief cause,
though, undoubtedly, it was at the root of much violence in both
Ulster and Southern Ireland. Dr. C. B. Dowse, Protestant
Bishop of Cork, speaking to his Synod on Oct. 26, 1921, said:
"We thankfully recognize that throughout our Diocese so many
Churchmen and Roman Catholics live side by side on terms of
friendship and goodwill." As a matter of fact Thomas Davis,
the poet of Irish Nationalism, had been a Protestant as were
Emmett and Mitchel and Parnell ; two members of the Sinn
Fein "Government" were of the same faith. Many if not, in-
deed, the majority of those killed in the troubles of the period,
were Roman Catholics.
As a rule the Catholic Hierarchy were free in their de-
nunciation of British power in Ireland, of the Military regime of
these years, of English opposition to Home Rule and the vague
policy of Self-determination, of the alleged cruelties of retalia-
tion. They had keenly opposed Conscription and had vigorously
fought the proposed Education Bill of 1920. As the Archbishops
and Bishops of the Church declared at Maynooth on Jan. 27th
of that year : "Until Ireland is governed by her own Parliament,
we shall resist by every means in our power any attempt to
abolish the Boards of Primary, Intermediate, and Technical
Education; the Bill is an attempt on the part of the British
Government to grip the mind of the people of Ireland and form
it according to its own wishes. We are convinced that the en-
actment of the measure would deprive the Bishops and clergy
of such control of the schools as is necessary for that religious
training of the young which Leo XIII declared to be a chief
part in the cure of souls." This document was signed by Card-
inal Logue and, ultimately, the Bill was withdrawn. A natural
ensuing action was the unanimous election of Mr. de Valera as
Chancellor of the National University of Ireland.
ATTITUDE OF THE ROMAN CATHOLIC CHURCH IN IRELAND 277
;
In the Irish churches of Feb. 15, 1920, a Lenten Pas-
toral was read from the Cardinal which was explicit in declar-
ing (1) "that the partition of Ulster would perpetuate the
jealousies, rivalries, dissensions and unjust discrimination, which
for centuries have been the bane of Ireland"; (2) that as to
crime and outrages "drastic repression is on one side ; on the
other retaliation, lawlessness, and crime, such as all men guided
by God must regret and reprobate." He believed these crimes
to be reprobated by the bulk of the Catholic Irish people, what-
ever their political views, and ascribed the outrages to a few ir-
responsible, desperate hot-heads, probably emissaries or dupes
of Secret Societies. Archbishop Harty of Cashel on Jan 25
(1920) denounced recent crimes with vigour: "Armed raids on
police barracks, the wiful murder of a constable, and an attack
by the police on undefended and inoffensive homes, call for
universal condemnation and reprobation. With all the authority
I can command, I condemn these crimes as a most grave viola-
tion of the laws of God."
Dr. Kelly, Bishop of Ross, was even more explicit, and,
speaking at Cork on June 10, would not admit that there was a
war going on: "I say it is murder if English soldiers shoot
Irishmen. Also it is murder if Irishmen shoot policemen. There
can be no such excuse as 'We got our orders from headquarters/
Headquarters has no power to issue such orders, and in issuing
them they would violate the law of God and the Christian re-
ligion." Shortly before this the same Bishop, in addressing the
Council of Agriculture at Dublin — of which, for 14 years, he had
been an active member — dealt with economic conditions first,
and then turned to the general situation: "The Council should
consider if the movement going on around us is political — to im-
prove the government of Ireland, as we have been accustomed
to it all our lives ; or if it is not rather drifting into social revo-
lution which breaks up the institutions of a country, its methods
of work and employment, its ownership of property, and aims
at evolving a new form of society. Such social revolutions have
been tried in the course of history; they have produced great
sufferings and ended in failure." He opposed a. Republic, sought
or obtained through violence, and pointed out that by "the Acts
of 1898 and 1899 the Irish people and their elected representa-
tives got control and management of their local government,
their country and city affairs, their agriculture and fisheries,
their technical education, their poor and sick."
Meanwhile, Sectarian strife had shown itself in Ulster as
lawlessness did in the South and, on Aug. 2nd, Cardinal Logue
banned political gatherings in the County of Armagh with a
reference to "destruction of life, destruction of property, repres-
sion and retaliation, sacking of towns by armed forces of the
Crown and, to complete our misery, outbursts of sectarian
strife, resulting in the loss of many useful lives." In a letter
read in Dundalk churches on Aug. 29, the Cardinal denounced
278 THE CANADIAN ANNUAL REVIEW
the recent murder of a Constable at that place: "The poor
victim I know to have been a quiet, upright man who never gave
offence to anyone in the discharge of his duty. Am I to be told
that this is an act of war; that it is lawful to shoot at sight
anyone wearing a policeman's uniform, and honestly discharg-
ing a policeman's duties? I prefer to call it by its true name —
cold, deliberate, wilful murder. Hence, anyone who plans, en-
courages, abets or even sympathizes with such an act, par-
ticipates in the guilt before God." With equal force he de-
nounced Government reprisals, raids, burnings, etc. : "Crime
does not excuse crime."
Following these utterances came the beginnings of con-
ciliation, which first took form in a statement by Cardinal
Bourne, Primate of England, to The Times (Nov. 12) : "What
comparatively few held ten years ago would, I feel confident, be
accepted by an immense majority in England at the present
time. They long to see in Ireland the widest possible system
of self-government ; but they are passionately attached to two
other things, namely, the maintenance of the link, so frail in out-
ward seeming, which is sympolized in the Crown; and the safe-
guarding of the essential defences of the Empire. Given these
two things, I am confident that there need be no limit, so far as
most dwellers in England are concerned, to the self-government
of Ireland." He and most Englishmen would like to see British
troops removed from Ireland : "But it would be misleading not
to admit that there is apprehension as to the consequences of
this withdrawal. It is allowed that there is actively at work in
Ireland a Secret oath-bound Association using as its weapon
assassination ; an association, therefore, to which no Catholic
who is obedient to the Church can possibly belong." Sinn Fein,
he added, was "apparently unable to control this murder gang."
To this Dr. Cohalan, Bishop of Cork, replied on the 14th by
declaring that what was wanted was "a big, generous scheme of
an Irish Parliament. You ask me, have I any hope of a settle-
ment? And I reply — though I find no one agreeing with me —
that I am hopeful." He, however, deprecated a permanent par-
tition of Ulster, any financial provisions which were not big
and generous, minority protection at the expense of the major-
ity. He expressed doubts as to the Secret oath-bound Society:
"Many take the erroneous view that because the elected repre-
sentatives declared a Republic, Ireland is a Republic. The transi-
tion to the claim to shoot members of the Army of occupation
is easy. Add to that, from the beginning of the trouble, re-
prisals on policemen who exceeded their duty, and you have an
explanation of the murders." At this time, also, Dr. Gilmartin,
Archbishop of Tuam, had a statement in the London Universe :
1. I have always denounced the shooting of police or of other ser-
vants of the Crown as murder (outside recognized cases of self-defence).
The Irish people have no sympathy with crimes of this kind, but many
of them do not care to speak openly. They are longing for an honour-
able peace.
ATTITUDE OF THE ROMAN CATHOLIC CHURCH IN IRELAND 279
2. As one crime does not justify another, I have also denounced
reprisals. The gaping wounds in the town of Tuam remain still unheal-
ed, and so far we have got no official assurance that compensation will
be made for the damage admittedly done to innocent people by the ser-
vants of the Crown.
3. The persecution of Catholic workmen in Belfast is a crime and
disgrace to all concerned. If there was an honest will to restore them
without prejudice to their natural rights, a way could be found.
4. Since the sack of Tuam on June 20 no servants of the Crown
have been molested in this district. But on their side much trouble has
been given, culminating with the arrival of the Black and Tans some
four weeks ago.
He urged a "Truce of God" with the first step to come from
the Government: "Let them propose a truce, introduce and
pass a full measure of Home Rule, including full fiscal control,
and forthwith, in my opinion, serious strife will cease." On
Nov. 27, 1920, Cardinal Logue denounced a recent crime in
strong terms and added : "Patriotism is a noble virtue when it
pursues its object by means that are sincere, honourable and in
strict accordance with God's law. Otherwise it degenerates
into a blind, brutal, reckless passion, inspired, not by love of
country, but by Satan, who was a murderer from the beginning.
The perpetrators of such crimes are not real patriots, but the
enemies of their country." On Dec. 5 Archbishop Harty, speak-
ing at Thurles, urged support to Dr. Gilmartin's "Truce of God"
and quoted Archbishop Walsh of Dublin as in favour of the
proposal.
It was at this time that Archbishop Clune of Perth, Aus-
tralia, was making his vain effort for peace ; in Cork on Dec. 12
there was read in the churches of the Diocese Bishop Cohalan's
decree (Cork Examiner, Dec. 13) in these terms: "Besides the
guilt involved in these acts by reason of their opposition to the
law of God, anyone who shall, within this Diocese of Cork, or-
ganize or take part in an ambush or in kidnapping, or otherwise
shall be guilty of murder, or attempt at murder, shall incur by
the very fact the censure of excommunication." Speaking as
to this on the preceding Sunday, the Bishop said : "The killing
of the R. I. C. men is murder, and the burning of barracks is
simply destruction of Irish property, x x x There is not
much risk to the ambushers, personally, but by this time boys
or men taking part must know that by their criminal acts they
are exposing perhaps the whole countryside to the danger of
terrible reprisals." As to the rest : "Let there be no doubt about
it; there is no doubt about it; these ambushes are murderous,
and every life taken in an ambush is murder."
An incident of this period which created much comment in
England was the appeal of the Irish Hierarchy to the Church in
Belgium to support the plan of a Tribunal of Enquiry into Irish
conditions, and the reply of Cardinal Mercier and his Bishops in
Liege, Bruges, Namur, Tournai and Ghent, on Dec. 1st. In this
latter document the lofty, historic position of the Church in
Ireland was eulogized, it was praised for interfering when en-
280 THE CANADIAN ANNUAL REVIEW
thusiasm misguided its followers and for condemning crime
wherever it occurred. Co-operation in the demand for an en-
quiry was promised and this statement added: "We have not
forgotten that the British Government was the first to espouse
the cause of right with us, when our country was subjected to
unjust aggression and the atrocities of an invader without con-
science. On the day when the enquiry which you solicit shall
have established that the Irish people seek not injustice, but
liberty and its rights, a new era of consolation and hope shall
open for you. We, who to-day, associate ourselves so cordially
with you in your trial, shall not fail to share with you in your
consolation and your joy."
Following the publication of this letter to Cardinal Logue,
Admiral Lord Walter Kerr, then President of the Catholic
Union of Great Britain, addressed on Dec. 10 a reply to Cardinal
Mercier which reviewed the peaceful condition of Ireland in
1915, the creation of the Easter rebellion of 1916 as part of an
alleged German plot, the ensuing record of deeds of violence,
and declared that no Enquiry, such as proposed, was possible
because witnesses would not dare to testify. He deprecated the
attitude of the Hierarchy and declared that: "No corporate
effort has been made by the spiritual leaders of Ireland to stamp
out the murderous spirit which is a reproach to their people and
their faith." To this latter statement the English Hierarchy
took immediate exception and the Bishop of Northampton, in
particular, wrote a strong repudiation to The Times.
Attitude and Opinions of Archbishop Mannix. The position
taken by this Prelate was almost an international question in
1920. In Australia, where Dr. Mannix — originally Professor of
Philosophy at Maynooth College, Ireland — had been appointed
Archbishop of Melbourne in 1912, he was both highly regarded
and bitterly criticized ; he was popular with a large section of
the Irish population of the Commonwealth, the subject of keen
denunciation by Mr. Premier Hughes as the head and front of
opposition to Conscription during the War; in leaving Mel-
bourne during March, 1920, to visit Rome, the United States and
Ireland, 30,000 people were said to have lined the streets of
Melbourne to see him off.
At New York, on July 18, 15,000 people cheered him at a
great demonstration where he was introduced by Archbishop
P. J. Hayes of New York as "welcomed by two Republics — the
United States and Ireland." Mr. de Valera also spoke and was
presented as "The President of the Irish Republic." According
to the report in the New York Tribune, Dr. Mannix referred to
"the triumphal march" which he had experienced from the
Golden Gate in San Francisco to this great city: "It has been
delicately suggested/' continued the speaker, "that I may not be
allowed to land on British soil. I have no intention of trying to
land on British soil. I am going to land on the soil of the Irish
Republic." The Archbishop then visited Washington and Card-
ATTITUDE OF THE ROMAN CATHOLIC CHURCH IN IRELAND 281
inal Gibbons at Baltimore. On July 20 he spoke at a meeting
in the Hotel Astor, New York:* "I have no sympathy with
crime or disorder, but I believe that the resistance shown by
the Irish people to British tyranny in Ireland is well grounded in
morality and justice. Moreover, I believe in the truth of the
wise saying that 'you cannot make an omelet without breaking
eggs.5 '
On Aug. 9, following, the steamer Baltic with the Archbishop
on board, passed the shores of Ireland and, near the English
coast, a destroyer under Government orders took Dr. Mannix off
and landed him at Penzance whence he travelled by train to
London. To The Times (Aug. 10) the Archbishop declared that
this action would make the Government a laughing stock, that
he intended to press his right to go to Ireland, that he was proud
of having fought Conscription in Australia and stood by every
word he had uttered in America. During the ensuing months he
spent in England, Dr. Mannix did not have a great deal to say;
the Government would not permit of his going to Ireland and he
abandoned the intention of doing so. A reception was given for
him by 300 of the priests of the Province of Westminster with
Mgr. O'Grady and the Bishops of Portsmouth, Southwark and
Cloyne present.
In his speechf the Archbishop was moderate, suggested an
Irish plebiscite on the issue, would accept Dominion Home Rule
if it should prove the wish of the people, did not think "any
Irishman would give a fig for the word of any British Minister,"
stated that "one of the greatest hindrances to good feeling in
Australia is this eternal Irish question," and described himself
in these succinct words "I was an Irishman before I was an
Archbishop and I remain an Irishman in spite of being an Arch-
bishop." To him, while in London, came a protest signed by the
Hierarchy of Ireland, headed by Cardinal Logue, which strongly
denounced the British Government for its action: "The Arch-
bishop has used his right as a citizen of the Empire to criticize
the conduct of the Government, and to set forth fearlessly in
plain and dignified language the claims of democracy in Aus-
tralia, and the rights of his own people in Ireland to freedom on
the principle of self-determination." The document eulogized
the Archbishop as "a man of peace and lover of justice," and
wished him a safe journey to the Holy City.
At Rome on Apr. 5, 1921, Dr. Mannix told the correspondent
of the Chicago Daily News and Toronto Star that : "The Irish
will accept only one thing — acknowledgment of their right to
decide their own destiny. Once this is admitted any arrange-
ments to guard the Empire are possible. Without this admission
no compromise is possible. The creation of two Parliaments
will do nothing to ease the situation." In this city he was the
guest for a time of Gavan Duffy, the "Representative of the
Irish Republic/' and on Mch. 27 had been accorded a reception
*Note.— New York Tribune report, July 27.
tNote.— Catholic Register, Toronto, Oct. 21, 1921.
282
THE CANADIAN ANNUAL REVIEW
by the Rector of the Irish College. On Apr. 15 he was in Paris
as the guest of a banquet given by Cean O'Ceallaigh, "Irish Am-
bassador to France," and, according to a despatch in the Toronto
Globe declared that "in the near future you will see Ireland inde-
pendent."
The Archbishop arrived home in Australia while the
negotiations for peace were under way and said at Melbourne
on Aug. 2nd that he hoped the long night of tragedy in Ireland
was nearly over, and that the negotiations now proceeding
would result in a peace honourable both to the Empire and to
Ireland. The year ended with the statement (Dec. 10) that the
Irish Treaty was clearly the longest step towards freedom that
Ireland had made for the last 750 years, and his fervent hope
and prayer was that it would bring friendship between countries
God had intended to be friends, but men had kept asunder. It
may be added that Archbishops Kelly, of Sydney, Duhig, of Bris-
bane, and Barry, of Hobart, were all Irishmen and all sympa-
thetic— though in varying degrees and forms — with Irish efforts
for freedom. Dr. Kelly stated at Sydney on Dec. 7, 1920, that
Dominion Home Rule and independence within the Empire
was the solution of the Irish problem.
The American Hierarchy and Ireland. As was, perhaps,
natural and not, in itself, improper, the Archbishops and Bishops
of the United States were more or less sympathetic to ideals of
Irish independence. They were citizens of a country which was
absolutely foreign to Britain and its Empire ; they lived in an
atmosphere created by foreign teaching and a foreign outlook ;
a large majority were of Irish extraction. Of the Committee
of 100 which undertook to investigate Irish conditions from
the hill-tops of Washington, Cardinal Gibbons, Archbishop J. J.
Keane of Dubuque and a number of Bishops were members ;
Archbishop Hayes of New York was an earnest supporter of
De Valera and an Irish Republic; Archbishop Mundelein of
Chicage led in the work for Irish relief and collected $150,000
for the American Fund. At Washington on Sept. 29 the 1921
annual meeting of the American Hierarchy sent a cablegram of
sympathy and support, through Cardinal O'Connell, to Cardinal
Logue, as to the work of Conference and negotiation which was
under way:
Particularly at this time we are not unmindful of the tremendous
debt the Church in this country owes to Ireland and its people. For
more than a century the millions of your race have come to our shores
and by their strong faith and their loyal and generous help, they have
built up a Church which has become the pride of Christendom and the
glory of the country in which we dwell.
Therefore, in this fateful hour, when the future of Ireland trembles
in the balance, it is not our desire, your Eminence, by any word of ours
to peril the outcome of those deliberations upon which a world waits
with bated breath. Rather, in the true spirit of our Holy Faith, united
with our people from every race and every station, our prayers ascend
from every altar in the land that God in His wisdom may bring Ireland's
ATTITUDE OF THE ROMAN CATHOLIC CHURCH IN IRELAND 283
misery of 700 years to an end, that this most apostolic race among all
of God's peoples may receive the reward for what they have done for
the Church of America and elsewhere by obtaining the fulfillment of
their national aspirations.
Action of the Irish Hierarchy in 1921. Quite frankly, in a
local letter on Jan. 24, 1921, the Archbishop of Tuam lamented
that the "Truce of God," which he called for in July, 1920, had
been broken, first, by the civilians of his Diocese in the Kilroe
ambuscade of the previous week. Once more he condemned
"the cowardly folly of the ambushers" and the cruelty of re-
prisals, and pleaded for peace. Early in February, following,
Bishop Cohalan of Cork, in his Lenten Pastoral made a signifi-
cant statement as to the validity or otherwise of the proclama-
tion of an Irish Republic. According to the Church's teachings,
he pointed out, this was a very important matter as, if Ireland
was really a Sovereign State, she had the right to use physical
force ; if not so, physical force was unlawful : "Was the pro-
clamation of an Irish Republic by Sinn Fein members of Parlia-
ment, after the last General Election, sufficient to constitute
Ireland a Republic? According to our Church teaching the
answer is : It was not. The resolution of Dail Eireann could
hardly pretend to include North-East Ulster in an Irish Re-
public, but, putting aside the Ulster question, the proposition
that a new Sovereign State could be established in that way
would strike at the stability of all States." For this and other
reasons, he declared the physical force policy to be unlawful
and not in accordance with Church teachings ; it had always
failed in the past to restore Ireland's freedom.
On Mch. 6 Cardinal Logue, Primate of all Ireland, "in a
letter to the priests of the Armagh Diocese, made an earnest
appeal for a St. Patrick's Day truce — with prayers for peace ; he
deplored the disregard for human life and property shown by
both sides, which, he declared, threatened to reduce the country
to a state of desolation and ruin. The Cardinal especially de-
nounced the ambushing and attacking of soldiers and police in
crowded thoroughfares : "They who commit such acts know
well those armed forces will blaze away indiscriminately, kill-
ing or wounding poor, innocent victims." On Apr. 28, speaking
at Clonoe, in Tyrone, His Eminence was even more explicit :*
"An Irish Republic you will never achieve so long as England
has a man to fight. If you get a full measure of self-govern-
ment, with control of taxation, that will give all you ask for.
xxx There should be no crime ; he who commits a crime
gives strength to the enemy." According to a lengthy extract
in the Toronto Catholic Register (Apr. 21) from a recent appeal
for peace and a Truce by Archbishop Gilmartin of Tuam, His
Grace said:
Ireland is a Catholic nation. She has lived through 700 years of op-
pression. Is not the God who sustained her so long able to bring her
*Note.— Irish Times report, Apr. 30, 1921; Irish Independent, May 2nd.
284 THE CANADIAN ANNUAL REVIEW
out of her hour of bondage? The end of the present struggle is a just
one, but no matter how noble the end, it does not justify evil means.
Outside cases of self-defence, it is murder for private individuals to take
life. What is called the I. R. A. may contain the flower of Irish youth,
but they have no authority from the Irish people, or from any moral
principle, to wage ambush war against unequal forces with the con-
sequences of terror, arson, and death to innocent people.
On May 21 an important pronouncement of neutrality from
His Holiness the Pope was made public by Cardinal Logue:
"There is assuredly no doubt that the harsh and cruel occur-
rences of this kind are in great part attributable to the recent
War, for neither has sufficient consideration been given to the
desires of nations nor have the fruits of peace, which peoples
promised to themselves, been reaped. In the public strife which
is taking place in your country it is the deliberate counsel of
the Holy See, a counsel consistently acted upon up to the
present in similar circumstances, to take sides with neither of
the contending parties." Prayers and efforts for peace were
urged and the following plan proffered : "We think it would be
opportune that the question at issue should be referred for dis-
cussion to some body of men selected by the whole Irish nation.
When this Conference has published its findings let the more
influential among both parties meet together and determine by
cpmmon consent on some means of settling the question in a
sincere spirit of peace and reconciliation."
Toward the middle of the year events were approaching a
climax and the Archbishops and Bishops of Ireland met at May-
nooth on June 21 and issued a statement thanking Pope Bene-
dict for the above Letter, with his gift of 200,000 Lire "to as-
suage the sufferings of an afflicted people," and denouncing the
Government of Ireland Act as a "sham settlement." It clearly
embodied the Catholic distrust of Ulster: "In defiance of Ire-
land a special Government has been given to one section of her
people, remarkable at all times for intolerance, without the
slightest provision to safeguard the victims of ever-recurring
cruelty; and a Parliament of their own is set up in their midst
after a year of continuous and intolerable persecution directed
against the Catholics of Belfast and the surrounding area."
Reference was made to the White Cross Association and its
work in aiding the sufferers from Government reprisals. Noth-
ing was said of other subjects at issue or concerning Sinn Fein
practices or the I. R. A. ; the document concluded with prayer
for a "just and lasting peace."
Then came the Peace negotiations and on Oct. 19 Pope
Benedict cabled H. M. the King as follows : "We rejoice at the
resumption of the Anglo-Irish negotiations and pray to the
Lord with all our heart that he may bless them and grant to
Your Majesty the great joy and imperishable glory of bringing
to an end the age-long dissension." To this Mr. de Valera took
prompt exception and sent His Holiness a long cablegram in
which he declared that the Independence of Ireland had been
IRELAND AND THE UNITED STATES; IRISH- AMERICAN ACTION 285
proclaimed and ratified by its people and would never be aban-
doned. With the conclusion of negotiations in December and
the signing of a Treaty creating the Irish Free State, came a
volume of approval from the Hierarchy. According to a des-
patch in the New York Tribune of Dec. llth, Archbishops Gil-
martin and Harty, Bishops Browne of Cloyne, Foley of Kildare,
Finegan of Kilmore, Gaughran of Meath, Brownrigg of Ossory,
O'Donnell of Raphoe, had all declared in favour of the Treaty
and its ratification. Cardinal Louge was said to favour ratifica-
tion and to regard it as a "fair enough settlement ;" there was no
combined notification or announcement.
In view of the large and widely-known part
Ireland and taken by Irishmen in United States politics and
the United municipal government, it is interesting to note that
American the number of Americans actually born in Ireland
Actkm^and was not» at this time, much over a million — though
Opinions. there were many millions of Irish extraction —
while the number of those born in Great Britain
and of those born in Canada was, in each case, about the same.
But the latter elements — even the French-Canadian — seemed
to mix and merge with the general population and to assume no
organized position in the national life or international policy.
Many Irishmen in the Republic took a conspicuous part in keep-
ing the country aloof from the War and, later on, their organi-
zations— such as the Friends of Peace, the Clan-na-Gael, the
League of Oppressed Peoples, the Friends of Irish Freedom, the
American Association for the Recognition of the Irish Republic,
and others — were accused of pro-Germanism.
An official report issued as a White Paper in London during
January, 1921, gave varied details in this respect and matched
the one which dealt with the alleged Sinn Fein and German plot
in Ireland. As to this, John Devoy, a prominent agitator along
these lines, stated in a Boston speech on Mch. 9*, that the
Irish Republican Brotherhood had sent word to sympathizers in
the United States of the plans for the Easter Sunday attack
upon British forces, during January of that year, and had re-
quested that the Clan-na-Gael in the United States furnish a
shipload of arms to be delivered in Limerick : "It was not pos-
sible to get any such quantity of arms in the United States with-
out the knowledge of the U. S. Government." Therefore, the
aid of Germany in securing these arms was asked and obtained,
though, he added, no other help was received by the revolution-
aries from German sources. There was a large body of Irishmen
in the United States who did not hold these views or support the
extremists ; how large a proportion it was and is, it would be im-
possible to say. But the main section was aggressive in advo-
cacy and influential in politics, eloquent with voice and pen ; the
support of the Hearst press and of papers like the Irish World
Note.— Despatch in Toronto World, Mch. 10, 1921.
286 THE CANADIAN ANNUAL REVIEW
gave its leaders public prominence and their views a certain
public force.
De Valera's Tour of the United States. The position as-
sumed by and given to Eamonn de Valera as "President of the
Irish Republic" was, in 1920 and 1921, a rather notable one. He
came over during 1919 avowedly to raise $10,000,000 by the sale
of bonds of the "Republic"; his reception by municipal bodies,
State Legislatures, Governors, the Roman Catholic clergy and
Irishmen in general was all that he could possibly desire. In
New York he had honours usually tendered to Royal visitors;
on Jan. 17, 1920, he was given the Freedom of the City amid
scenes of enthusiasm. W. Bourke Cockran, the Irish-American
orator, presented him to Mayor Hylan as "the embodiment of a
great national uprising for vindication of the fundamental reali-
ties that constitute the principles of Christian civilization"; the
Mayor officially greeted his guest as President of the Irish Re-
public and congratulated him upon his "dignified campaign of
education and masterly presentation of a safe and sane policy."
According to a despatch in the London Times of Feb. 3rd,
Mr. de Valera was asked at a New York meeting on the 1st
whether the Irish had desired a German victory in the War.
His reported answer was decisive : "Centuries ago we joined
the Spanish when they made war upon England. For a hundred
years we supported the French in their war to destroy her.
We shall do the same thing the next time she is attacked. We
always wish to see the Imperial tyrant beaten. We shall always
be ready to strike at her." On the following Monday 40,000
canvassers started on their bond-selling campaign in New York
and, according to a long despatch in the Montreal Star of the
19th, $2,550,000 out of the local quota of $3,000,000 was sub-
scribed on the first day and included a $1,000 cheque from Arch-
bishop Hayes of New York. As stated in various Irish or
Catholic American papers the objects of this Loan were as
follows :
1. To set up arbitration tribunals and establish a national civil
service system by which the Irish people at home will carry on their
education and civil affairs.
2. The fostering of Irish industries, e.g., the development of Irish
Sea fisheries, the appointment of a Commission to hold public enquiries
into and report upon the industrial resources and possibilities of the
country.
3. The establishment of a Land Mortgage-Loan Bank to finance
the re-settlement of untenanted lands.
4. The encouragement of re-afforestation.
On the other hand, the New York Irish World* put it rather
differently: "The success of the campaign will be an important
factor in determining the future of the Irish Republic. Money
has been aptly termed the 'sinews of war/ War is now on in
Ireland — a war of liberation." It may be added that on Dec. 8,
*Note.— Quoted in Literary Digest, Feb. 7, 1920.
IRELAND AND THE UNITED STATES; IRISH- AMERICAN ACTION 287
1921, Stephen O'Mara told the New York Tribune that the total
of Irish Republic bonds issued and sold in the United States to
date was slightly more than $5,500,000: "In the first Loan
campaign of 1920 we sold $5,300,000. In the second drive now
on in Illinois, not more than $350,000 has been subscribed with
$30,000 more in New York." Meanwhile, on Mch. 17, 1920, a
great St. Patrick's Day parade was held in New York and 12,000
marched past the reviewing stand where sat Governor Alfred
Smith, Archbishop P. J. Hayes, Mayor Hylan and E. de Valera ;
later in this year the Irish leader had visited Chicago and San
Francisco and endeavoured, unsuccessfully, to get an "Irish
recognition" clause in the Republican and Democratic plat-
forms; at Washington late in July he attended a reception in
honour of Archbishop Mannix and declared in his speech (re-
ported by F. W. Wile in the Philadelphia Ledger) that: "The
Irish people have proclaimed their independence, have establish-
ed a republic, and mean to maintain it."
Addressing 30,000 people at a New York demonstration in
honour of Lord Mayor MacSwiney (Oct. 31) Mr. de Valera
was given a great reception and bitterly denounced Great
Britain. He said he had received word that at least one Irish-
man, recently, had been "stripped, flogged and pincered and had
his finger-nails broken and his teeth knocked out" in order to
force information as to other Irish patriots (New York Tribune
report). During all these months of 1919 and 1920 De Valera
made a multitude of speeches giving the extreme Sinn Fein
side of the case, urging his reasons for Independence and a Re-
public, denouncing Britain in its soldiers, statesmen, politics,
history and the character of its people. In the spring of 1921
he was back in Dublin ; how, no one seemed to know and, in an
interview given there to the American Associated Press, he
stated on Mch 17, 1921, that: "There can be peace to-morrow
if England will simply refrain from her aggressions. We had
established a peaceful constructive administration. We were
setting a noble example to the world of government based on
consent, and were developing our trade and industries, when
Lloyd George loosed upon us his murder-horde, blooded up by
official instigation, and sedulously inflamed with a regular
weekly bulletin of calumny and hate. Against this horde we
shall never cease to defend ourselves to the utmost of our
power."
American Politicians and Irish Affairs. During these years
much official American attention was given to this question.
At Washington on Mch. 17, 1920, the Senate adopted a Reserva-
tion to Versailles Peace Treaty, declaring by 38 to 36 votes
that : "In consenting to the ratification of the Treaty with Ger-
many, the United States adheres to the principle of Self-deter-
mination and to the Resolution of sympathy with the aspirations
of the Irish people for a Government of their own choice as
adopted by the Senate June 6, 1919." A motion to eliminate
288 THE CANADIAN ANNUAL REVIEW
the reference to Self-determination was lost by 51 to 30 votes.
On May 4 of this year a cablegram signed by 88 members of the
House of Representatives was sent to Mr. Lloyd George —
despite protests from those who did not approve of interference
in the domestic affairs of another nation — declaring that "whole-
sale arrests without arraignment or trial disturb the peace and
tranquility of a people, are destructive of human rights, and are
at variance with that principle of liberty which is embodied in
the United States constitution," and protesting "against further
imprisonment without arraignment or trial of persons resident
in Ireland arrested for acts of a political nature."
During the Presidential elections, Senator Harding, the
Republican candidate, stated on Oct. 8, 1920, (Times despatch)
that: "I would no more tell a Briton what to do with Ireland
than I would permit a Briton to tell us what we should do in the
Philippines." Governor Cox, the Democratic candidate (Kansas
City, Oct. 2, 1920) took another view: "Ireland has the right
to separate from Great Britain and establish its own Govern-
ment in any form pleasing to itself, and to that end may wage
such internal aggression as seems necessary to accomplish that
result." He declared that Ireland, before long, would achieve
her own Independence, and that under the terms of the League
of Nations' Covenant the United States might then be called
on to guarantee her freedom. On Dec. 15, following, 10 United
States Senators joined in a protest against the refusal of the
British Embassy to vise the passports of 4 members of the un-
official American Commission of Enquiry who desired to visit
Ireland.
In the Senate on Apr. 25, 1921, Senator La Follette of Wis-
consin, in speaking to a Resolution which demanded official
United States recognition of the independence of the "Irish Re-
public," said: "Ireland is to-day a test of real Americanism.
Those who most actively oppose recognition of the Independ-
ence of Ireland in her struggle for freedom from Great Britain
are of the same mind, the same flesh, the same blood, as~ the
Tories of 1776. Those who to-day favour recognition by the
United States of Irish independence stand upon the great funda-
mental principles of human liberty which were written into the
Declaration of Independence." The Resolution did not pass.
In the same body on May 2nd, Senator W. E. Borah of Idaho
presented for official publication in the debates and ensuing dis-
tribution "An Address to the Congress of the United States
from the Dail Eireann"; his request for printing it as a public
document was approved without objection.
The Address claimed that in 1920, 47,474 Irish homes and
institutions were raided by British troops and by Black and Tans,
and that there was an orgy of murder and robbery: "Neither
age nor sex nor profession was respected. Old men of 80 and
little children of 8, sick and crippled boys, mothers and wives,
even anointed ministers of God, were indiscriminately murder-
IRELAND AND THE UNITED STATES; I RISK- AMERICAN ACTION 289
ed." In both Houses Resolutions were presented, though not
passed, in 1921, favouring recognition of Irish Independence; the
Legislature of Illinois passed through both of its State Houses
a motion calling upon the U. S. Government to take this action ;
Admiral W. S. Sims, the famous Commander of the U. S. Navy
in British waters during the War, was ordered home by Mr.
Denby, Secretary of the Navy, and publicly reprimanded, on
June 24, for a speech in London on June 7 when he urged Eng-
lish-speaking people to combine and described the anti-British
elements in the States as representing "Jackass votes"; the
Denver Convention of the American Federation of Labour in
June passed Resolutions urging the President and Congress to
bring about recognition of the Irish Republic, and protesting to
Great Britain against the "brutal and uncivilized warfare being
conducted in Ireland." With the coming of negotiations in
July official and unofficial Irish activities in the United States
were largely suspended; on July 13 Senators G. W. Norris of
Nebraska and R. M. LaFollette of Wisconsin wrote Senator
Henry C. Lodge, Chairman of the Foreign Relations Committee,
requesting postponement of hearings on the Irish Resolutions
because they hoped for peace as a result of the current dis-
cussions.
This action and policy of various legislators was not with-
out severe criticism. It was asserted that the United States had
no moral right to interfere, and was holding Haiti and Santo
Domingo without the consent of their peoples. A Senate
Committee during 1921, headed by Senator Medill McCormick,
visited the two Republics to investigate numerous charges of
cruelties and outrage against the U. S. Marine Corps ; they did
not report as to these but declared that the troops should not be
withdrawn. H. G. Knowles, who was Minister to Santo Do-
mingo under President Taft, renewed publicly the charges of
cruelty and declared the investigation a "white-washing farce."
He said in an article published in August, 1921 (Current History,
New York) that: "The invasion and oppression of Santo Do-
mingo was not only a wrong to that little country, but an assault
on the sovereign rights of one of the Latin-American republics.
As they looked at their little Dominican sister in chains, saw
her homes being burned, her people tortured and killed, her jails
filled with her patriots, her public money seized and misspent,
her country exploited and bankrupted, and her taxes gathered
and spent to reward America politicians and job-hunters, they
realized that the 'great power of the North' had broken one of
the links of their Latin-American chain."
In the Philippines the question of Independence was a
direct and continuous issue in 1920-21 ; almost complete auto-
nomy was theirs but they wanted more and, as a natural result
of self-government by an ignorant, untrained and inefficient
Eastern race, there was plenty of corruption and mal-admini-
stration and a condition of practical insolvency to complain of
290
THE CANADIAN ANNUAL REVIEW
and, unjustly, to lay at the doors of the United States. Porto
Rico demanded Statehood in the Union or Independence and up
to this time was refused both. These alleged conditions were
frequently and in varied forms flung at Senators and public men
who talked about Irish independence.
Protests against the speeches and advocacy of Mr. de
Valera and his friends were many. The Ulster League of North
America was incorporated in Massachusetts in 1920 and within
a month had 16,000 members and issued vigorous demands for
the arrest and deportation of the Irish visitor ; the Philadelphia
Protestant Federation, said to represent 241,000 Americans,
passed similar Resolutions and was supported by other organi-
zations throughout the country. Admiral Sims, in his book on
the War, declared that the Sinn Feiners had done everything
in their power to help Germany: "With their assistance Ger-
man agents and German spies were landed in Ireland. At one
time the situation became so dangerous that I had to take ex-
perienced officers, whose services could ill be spared, from our
Destroyers and assign them to our outlying air stations in Ire-
land." Early in 1920 an Ulster delegation to the United States
and Canada received a warm welcome in many places and a
stormy one in others; at three mass meetings in Boston (Feb.
16) Resolutions were passed calling upon the United States
Government "to resist, by every available means, the clamour
for this country's intervention in the domestic affairs of Great
Britain."
The New York Times, the Independent, the Outlook and sim-
ilar journals were outspoken in protests, and the New York
Tribune of Apr. 22, 1921, declared that: "Without American
dollars Sinn Feinism probably long ago would have ceased, many
men and women now dead would be walking the earth, millions
of damage would not have occurred, and Ireland might now be
adjusting herself to the self-government that Canada enjoys."
From time to time practical proofs of the hostile effects of this
propaganda were made public. In the British Commons on May
26, 1920, Sir H. Greenwood stated that American ammunition
totalling 16,388 pounds had been captured in the Dublin district
since Mch. 26 last and, at New York on June 15, Customs of-
ficials seized about 500 modern machine guns, alleged to have
been found concealed aboard the steamer Bast Side, tied up in
Hoboken, and loading for an Irish port.
There was no doubt about the influence of $5,000,000 raised
by Bond sales. Other millions were raised by private subscrip-
tion to Relief funds. As to this latter point, there were several
funds, including the Belfast Expelled Workers' Fund which was
earnestly backed up in a published appeal by Bishop MacRory
of Down and Connor (Aug. 12, 1920) ; the American Committee
for Relief in Ireland which, by February, 1921, had collected
$350,000 and allotted $50,000 for aiding victims of Belfast riots ;
there was, also, the Irish White Cross Fund. The American
IRELAND AND THE UNITED STATES; I RISK- AMERICAN ACTION 291
Committee was the chief of these with U. S. Senator D. I. Walsh
of Massachusetts, as the originator of the plan, and Cardinal
Gibbons, G. B. Cortelyou and Josephus Daniels amongst the
Vice-Chairmen of the Committee. On Mch. 5, in Chicago, 500
guests at a Dinner subscribed $100 each to the Fund and Senator
Walsh told them its objects: "No one is seeking to make trouble
between this Government and Great Britain. We believe the
friendship of the world, especially the English-speaking people
for one another is of priceless value to civilization. Naturally,
however, the relief in America must be led by those who have
Irish blood in them. We must act at once."*
The objective was $10,000,000 and a nation-wide drive began
on Mch. 17 which lasted until the 28th. It was supported by a
cable from Cardinal Gibbons sent early in the year and the
reply of Archbishops Harty of Cashel, Gilmartin of Tuam, and
Walsh of Dublin, statingf that help was greatly needed in,
especially, the regions of Cork and Dublin. Cardinal Logue
emphasized Belfast in his reply as the only point needing im-
mediate relief — there, he said, thousands of Catholics had been
driven from their homes by hostile Orangemen. A large sum
was collected — the exact amount was not made public. Includ-
ing Bond purchases the London Daily Telegraph of Oct. 18, 1921,
put the total of American contributions for Sinn Fein purposes
and Irish aid at £2,400,000. Meanwhile, the statements made by
the Committee to the effect that famine was about to add thou-
sands of victims to the hundreds of thousands already in need
of bare necessaries, that in every Irish village and town sick-
ness, pestilence and death had invaded humble homes and that
children of tender years were ragged, wretched and hungry,
were vigorously denied, and, eventually, the British Embassy
at Washington (Mch. 30, 1921) issued an official statement as
follows :
Banking and trade statistics and tax returns show that Ireland as
a whole has never been more prosperous than at the present time.
Millions of pounds have been made available from money raised by
taxation in the United Kingdom to build houses, to encourage land set-
tlements and to promote employment schemes and the general work of
reconstruction, but the Counties and cities of Ireland which are Sinn
Fein in sympathy refuse to accept this money and prefer to appeal to
America for charity, x x x Particularly it should be emphasized
that there is no shortage of food in Ireland.
It may be added that the American Federation of Labour at
its Montreal meeting on June 17 had three Resolutions upon the
Irish question before it — all extremely anti-British and denunci-
atory. They were referred to a Committee and the following
was one clause of an Omnibus motion which was passed unani-
mously— the Canadian delegates expressing no public objection:
Whereas the American Federation of Labour has approved the
efforts of the Irish people to establish an adequate form of self-govern-
*Note.— See speech by Senator Walsh on July 4, 1921. Page 295.
*Note.— Catholic Register, Toronto, Jan. 6, 1921.
292 THE CANADIAN ANNUAL REVIEW
ment in the exercise of their right to self-determination, and they have
by an overwhelming majority established the Irish Republic; and where-
as the English Government is now seeking to destroy through military
process the republican form of government already established by the
Irish people;
Therefore, be it resolved that the American Federation of Labour,
in Convention assembled, re-affirm its endorsement of the Irish Re-
public, and respectfully request that the military forces of occupation
in Ireland be withdrawn from the country, and that the Irish people be
allowed to guide their own destinies as proclaimed in the Manifesto
issued by the President of the United States, comprising his 14 points
and agreed to by the British Government and the Allies in the recent
world war, and that we tender our aid to the people of Ireland in their
efforts for freedom, through the American Federation of Labour, to the
end that Ireland be permitted to take its place amongst the free nations
of the world.
The Irish-American Committee of 100. This organization
was variously described, eulogized, and denounced. It com-
prised good men and others with peculiar reputations along
political lines ; it included in its membershop outstanding and
respected figures like Cardinal Gibbons and Archbishop Keane ;
it had pro-Germans and Pacifists such as George W. Kirchwey
and Jane Addams ; it represented 35 States and included the
Governors of five States, ten United States Senators, six Con-
gressmen, twelve Mayors, and editors, jurists, publicists, edu-
cators, business men, and labour leaders. Amongst others were
U. S. District Judge Charles F. Amidon, of North Dakota ; Judge
George Holmes, of Omaha ; Dean Robert Morse Lovett, of the
University of Chicago ; former Ambassador M. F. Egan, William
Allen White, President W. A. Nielson, of Smith College. Oswald
Garrison Villard (born in Wiesbaden, Germany) and editor of
the one-time anti-war New York Post and of the Sinn Fein, Pa-
cifist, New York Nation, with W. R. Hearst, were its most
vehement protagonists.
Sir Auckland Geddes, British Ambassador, refused to be
represented on the Committee and declared in his reply to the
invitation (Oct. 23, 1920) that he was unable to believe that the
truth could be established until there had been a period of quiet
in Ireland, and then only by persons of the greatest experience
of the laws of evidence, with power to compel the production of
books, papers and records, and that any other form of enquiry
would lead only to a mass of statements, unsupported by facts,
and made for propaganda purposes. Sir Edward Carson, in
reply (Nov. 26) to a cablegram asking his attendance at the
Enquiry, stated that the Commission had no mandate from the
British Government: "I feel certain that all true Americans
who desire a close friendship between their country and ours
will resent such an unwarranted interference with the affairs
of a foreign friendly State." The Committee, as finally con-
stituted, nominated a Commission of Five with Hon. F. C. Howe
as Chairman, which was to hold a formal Enquiry into conditions
in Ireland, with power to invite witnesses to testify — not under
oath — and to examine such witnesses by means of counsel. The
IRELAND AND THE UNITED STATES; IRISH- AMERICAN ACTION 293
Enquiry began at Washington on Nov. 17, 1920, and the Com-
mission issued a statement to the public which included the fol-
lowing basic paragraph :
The members of the Commission are unanimously of the belief that
the friendship of the English-speaking people for one another is of
such priceless value to the welfare of the entire world, that for Ameri-
cans to leave a single stone unturned to preserve that friendship would
constitute grave culpability. The Commission is, moreover, profoundly
stirred by the long-continued reports of lawlessness and the wholesale
shedding of blood in Ireland on both sides. Its members cannot sit by
unmoved at the possibility of an outcome so terrible that it might easily
mean the destruction of the bulk of the sorely harrassed Irish people, a
people so gifted as to be able to make a unique contribution to the cul-
ture and progress of the world, a people whose voluntary martyrs have
begun to make the whole globe realize that the situation of Ireland has
reached a pass where men prefer death to its continuance.
The Report was issued on Mch. 31, 1921, after 38 witnesses
of alleged outrages had been examined — 18 American, 18 Irish
and 2 English ; the document admitted that these witnesses and
the testimony available were almost wholly from the Irish re-
publican or Sinn Fein viewpoint, or "from sources not unsym-
pathetic to the application of the principle of self-determination
to Ireland." Some of the witnesses were D. J. O'Callaghan,
Lord Mayor of Cork, Mrs. MacSwiney, widow of the late Mayor
of Cork, and his daughter, Miss Mary MacSwiney. A special
Committee, appointed to visit England and Ireland for purposes
of investigation, were refused passports by the British Em-
bassy. The terms of the Report were a concentration in con-
densed form of Sinn Fein charges against the British Govern-
ment and its troops in Ireland. About 400 members of the
Crown forces in Ireland were killed in a year, according to the
Report, and this was condemned as contrary to social morality
and the assassinations as tending to degrade the Irish cause in
the eyes of the world. It, also, was alleged that the people were
deprived of the protection of British law and the moral protec-
tion of International law which they would have had as recog-
nized belligerents. The document then passed to the main sub-
ject and summarized the evidence of British "terrorism" as
follows :
1. The Imperial British Government has created and introduced in-
to Ireland a force of at least 78,000 men, many of them youthful and in-
experienced, and some of them convicts ; and has incited that force to
unbridled violence.
2. The Imperial British forces in Ireland have indiscriminately kill-
ed innocent men, women, and children ; have discriminately assassinated
persons suspected of being Republicans ; have tortured and shot prison-
ers while in custody, adopting the subterfuges of refusal to halt and
attempting to escape; and have attributed to alleged Sinn Fein ex-
tremists the British assassination of prominent Irish Republicans.
3. House-burning and wanton destruction of villages and cities by
Imperial British forces under Imperial British officers have been coun-
tenanced and ordered by British officials.
4. A campaign for the destruction of the means of existence of the
Irish people has been conducted by the burning of factories, creameries,
crops and farm implements, and the shooting of farm animals.
294 THE CANADIAN ANNUAL REVIEW
5. Acting under a series of proclamations issued by the competent
military authorities of the Imperial British forces, hostages are carried
by forces exposed to the fire of the Republican Army; fines are levied
upon towns and villages as punishment for alleged offences of indi-
viduals; private property is destroyed in reprisals for acts with which
the owners have no connection.
6. This (Terror) has failed to re-establish Imperial British civil gov-
ernment in Ireland. Throughout the greater part of Ireland British
courts have ceased to function ; local, county, and city governments re-
fuse to recognize British authority; the British civil officials fulfil no
function of service to the Irish people.
7. In spite of the British (Terror) the majority of the Irish people,
having sanctioned by ballot the Irish Republic, give their allegiance to
it; pay taxes to it; and respect the decisions of its courts and of its civil
officials.
The British Embassy at Washington at once issued a state-
ment declaring (1) that "Ireland, so far from being a devas-
tated country, is the most prosperous part of the United King-
dom, and probably of the whole of Western Europe," with de-
posits in Joint Stock Banks increasing from £147,000,000 in 1914
to £200,000,000 in 1920; (2) that the Report laid stress on so-
called reprisals, and ignored the fact that before even the Irish
propagandists suggested in September, 1920, that reprisals were
taking place, 92 policemen, 12 soldiers and 28 civilians had been
murdered in cold blood, and 159 policemen, 56 soldiers and 74
civilians wounded — in most cases without a chance of defend-
ing themselves; (3) that Sinn Fein had established its position
by the terror of the revolver, which had silenced the moderate
opinion of the vast majority of Irishmen and that it desired to
claim for the Irish Republican Army the status of belligerents,
while the members of the Force "constantly, indeed invariably,
violated the laws of war as recognized by every civilized com-
munity"; (4) that the methods used were "those of the assassin;
their deadly work was done in stealth by persons in the garb of
civilians, who moved about under the protection of the law until
the moment came for the attack, and who, immediately after
killing their victim, reverted to the aspect and demeanor of
peaceful citizens"; (5) that "the Crown forces, under almost in-
credible provocation patiently borne during many months,
have on some occasions broken the bonds of discipline and com-
mitted unjustifiable acts of violence is not denied, but to say
that such acts have been ordered by the British Government is
absolutely false"; (6) that so-called Sinn Fein courts had every-
where ceased to function, and there were at this date no Re-
publican civil officials who were not in hiding while the regular
Assize Courts had been held throughout Ireland in the month of
March.
Irish- American Incidents of 1921.
Mch. 17. The St. Patrick's Day parade emphasized the split be-
tween the De Valera and Cohalan Irish factions— the Friends of Irish
Freedom under the leadership of Judge D. F. Cohalan directing the
Parade and the American Association for the Recognition of the Irish
Republic under Eamonn de Valera boycotting it absolutely.
IRELAND AND THE UNITED STATES; I RISK- AMERICAN ACTION 295
Apr. 7. According to the New York Tribune report, several hundred
Irishmen wildly cheered Thomas F. Ryan, of the Warehousemen's
Union and a Director of the American Association for the Recognition
of the Irish Republic, when he urged organization so as to enlist Ameri-
can labour in a boycott of British goods. He declared that in the War
the Irish in America had mistakenly "sent their boys overseas to make
the world safe for the British Empire," and urged the workers of Eng-
land, Scotland, Wales and Ireland, to unite now and "overthrow the
British Empire."
Apr. 17. Chicago held an Irish Parade to celebrate the 1st Conven-
tion of the American Association for the Recognition of the Irish Re-
public and the banners carried bore such devices as the following:
"Burn Everything British But It's Coal."
July 4. At a Tammany Hall demonstration with Senator D. I. Walsh
as the chief speaker, a Resolution was passed urging the United States
to recognize the independence of the Irish Republic.
July 11. At New York, James A. Flaherty, Supreme Knight of the
Knights of Columbus, called upon the 800,000 members of that organiza-
tion in the United States, Canada and Mexico, and their families, to pray
that Ireland might at last enter an era that would see the end of suffering
and disorder. He stated that he had personally pledged the spiritual
support of the Knights of Columbus to De Valera in the current crisis.
July 22. At Detroit the 52nd National Convention of the Ancient
Order of Hibernians declared by Resolution that the peace of the world
and freedom of the seas depended upon Independence for Ireland ; urged
the President at once to recognize the Irish Republic; denounced Rear
Admiral Sims for "notorious pro-English tendencies," and urged his re-
moval from the presidency of the United States Naval War College.
Aug. 18. It was announced at the Supreme Convention of the
Knights of Columbus at San Francisco that prizes had been offered by
the organization totalling $7,500 to writers of the best historical essays
on subjects to be specified by the K. of C. National Historical Commis-
sion, of which Edward F. McSweeney of Boston was Chairman, with
Admiral W. S. Benson, Prof. George Deny and Maurice Francis Egan
as the other members.
Sept. 8. To the New York Tribune, Mr. McSweeney, after a meeting
of his Committee in New York, stated that they would oppose the pro-
posal to celebrate the signing of Magna Charta in English-speaking
countries : "The Knights of Columbus believe that the Declaration of
Independence is an infinitely more important and conclusive document
of human liberty than Magna Charta. x x x The history movement
aims at only one thing — the preservation of truth in the writing of
American history." John B. Kennedy, Editor of Columbia, a K. of C.
magazine in Chicago, stated in this connection that a score of mono-
graphs would be prepared and that the cost of research, publication and
distribution would run up to $1,000,000.
Dec. 8. All members of the Knights of Columbus were called upon
by James A. Flaherty. Supreme Knight, to pray that the Irish peace
might be a permanent one: "If successive British Governments honour
the Agreement reached by the statesmen with Premier Lloyd George,
there will be a happy end to the oppression and bitterness that have
marred Ireland's life for centuries." Judge Cohalan and Diarmuid
Lynch, a De Valera leader in New York, denounced the Agreement and
the Free State.
Dec. 8. The New York American, chief organ of W. R. Hearst, re-
ceived the Irish agreement as follows: "The King congratulates Mr.
Lloyd George and so does the rest of the world, assuming that he has
ended in a manner just and acceptable to the Irish a fight for liberty
that has lasted more than 700 years. The British Empire also is to be
congratulated, for a contented Ireland will mean greater strength than
could have been got from a thousand battleships."
296 THE CANADIAN ANNUAL REVIEW
Dec. 10. The Friends of Irish Freedom met in New York, elected
T. F. Cooney of Providence, R.I., President in succession to Bishop M. J.
Gallagher of Detroit, passed Resolutions denouncing the Irish Peace
pact and pledging themselves to raise $2,500,000 in order to continue the
fight for an Irish republic, and to combat British propaganda. The op-
posing De Valera organization through Major M. A. Kelly, Secretary,
declared on the 14th that this was mere stage-play and denounced Judge
Cohalan who was the real head of the organization.
Meantime, while crime and civil strife were
The 6th Iri»h rampant in parts of Southern Ireland and Ulster
Home Rule an(i controvers bitter in many parts of the world,
Bill: ''J* ^ as to the relations of England and Ireland, many
* *"
men were trying to find a basis for peace, a com-
1921. promise for the settlement of an age-long diffi-
culty. The first step was the passage of a Home
Rule Bill in London and its enactment into law ; until that was
done there seemed to be no real beginning for a solution of the
problem. The Government of Ireland Act, which came into
operation on May 3rd, 1921, repealed the Home Rule Act of
1914 — which had never operated — and established two Parlia-
ments, one in Dublin representing Southern Ireland, and one
in Belfast representing the six North-eastern Counties of Ulster
and including the Parliamentary boroughs of Belfast and Lon-
donderry. There was to be, in each, a Senate with 26 members
in the North and 64 in the South, and, in each, a House of Com-
mons with 52 Northern members and 128 Southern ; there was
provision for the creation of a Council of Ireland with 41 mem-
bers composed of a President chosen by the Lord Lieutenant, 7
members of each Senate and 13 of each House of Commons;
power was given the two Parliaments by identical Acts, agreed
to by an absolute majority of members of each House of Com-
mons to establish, in lieu of the Council, a Parliament for the
whole of Ireland which would consist of two Houses.
There were a number of reservations from the power of
these Parliaments including (1) the Crown and its property
and the Lord Lieutenant — apart from his Irish Executive action ;
(2) the making of war and matters arising from a state of war ;
(3) the Navy, Army, Air Force or Defence of the Realm and
questions of Pension and Allowances ; (4) Treaties or relations
with foreign States, or the King's other Dominions, or extra-
dition of criminals; (5) Dignities or titles of honour, treason,
naturalization, aliens and domicile ; (6) Trade outside of each
Parliamentary area, tariffs, bounties, quarantine and navigation ;
(7) Submarine cables, wireless, aviation and lighthouses, coin-
age, trade-marks, copyright and patent rights. The British
Government, for specified periods, was to control the Royal Irish
Constabulary and Metropolitan Police, appointments of magis-
trates, Post Office and Land Purchase Acts. The Council of
Ireland was to make laws as to Railways, Fisheries and con-
tagious diseases of animals, with large powers in respect to
Private Bills. Financially, Ireland was to contribute £18,000,000
THE 6rH IRISH HOME RULE BILL; THE PEACE AGREEMENT 297
1912 Apr. 16
1913 Jan. 16
30
7
1914 May 25
July 20
Aug. 4
Sept. 15
jau.
Jan.
LUly
May
a year for two years to the Imperial Exchequer; an adjustment
of this amount was to be made in two years and every 5 years
thereafter; it was estimated that there would be a surplus of
£7,500,000 annually at the disposal of the two Parliaments from
the taxes collected by Imperial authorities; there were to be
Supreme Courts in the North and the South and a High Court of
Appeal for all Ireland. Such was the 6th and last of the long
succession of Home Rule Bills :
1882 Apr. 8 Mr. Gladstone's 1st Home Rule Bill introduced.
1886 June 8 Vote on 2nd Reading : 313 for ; 343 against.
1893 Feb. 13 Vote on 3rd Reading: 301 for; 267 against.
" Aug. 30 Mr. Gladstone's 2nd Bill introduced.
" Sept. 8 House of Lords Rejected the Bill: Against it 419; For
it 41.
1908 Mch. 30 Mr. Redmond's Resolution in favour of Home Rule car-
ried by Liberal majority of 157.
Mr. Asquith's Home Rule Bill introduced.
Vote on 3rd Reading : 382 for ; 273 against.
House of Lords Rejected the Bill.
Mr. Asquith's Bill passed by Commons a 2nd time.
Mr. Asquith's Bill passed by Commons the 3rd time.
Conference on Ireland at Buckingham Palace.
Declaration of War against Germany.
A Bill, suspending the operation of the Home Rule Bill
until after the War, passed through all stages of
Commons.
Sept. 15 House of Lords declined to discuss Home Rule Bill.
" Sept. 18 Mr. Asquith's Home Rule Bille and the Suspensory Bill
received the Royal Assent.
1920 Mch. 31 Lloyd George Home Rule Bill passed 2nd Reading in
Commons by 94 to 348.
" Nov. 11 Lloyd George Home Rule Bill passed 3rd Reading by 183
to 52.
Nov. 25 Home Rule Bill passed 2nd Reading without division in
Lords after rejection of the Bill had been negatived
by 164 to 74.
The final Home Rule Bill was far from granting Dominion
status or the powers given to Canada at the time of Confedera-
tion. Ulster accepted the Act with reluctance. Southern Ireland
would have nothing to do with it. In this event the Act provided
that the Parliament of the South would not sit and its govern-
ment would revert into the hands of the existing Executive with
an Advisory Council. The Act came into operation on May 3rd,
1921, and Elections followed on May 13 when all but 4 members
of the Southern Parliament were elected by acclamation as
Sinn Feiners pledged not to take the oath or sit in the new
House but, as Mr. de Valera put it in a Manifesto, to prove once
more the Irish demand for a Republic. Amongst those elected
were De Valera, Mme. Markievicz, Mrs. O'Callaghan, widow of
the murdered Mayor of Cork, and Mrs. Pearse, mother of
Padraic Pearse, executed after the Dublin rebellion of 1916.
Ulster elected on May 20th, 40 Unionists, 6 Nationalists and
6 Sinn Feiners — amongst the latter Michael Collins, E. de Valera
and Arthur Griffith. These three men were, therefore, techni-
cally all members of the British, Southern and Northern Parlia-
298
THE CANADIAN ANNUAL REVIEW
ments at the same time. The Southern Senate included 64 mem-
bers with four elected by the Archbishops or Bishops of the
Roman Catholic Church, two by the Archbishops or Bishops of
the Church of Ireland, 16 by Peers, 8 by Privy Councillors, and
14 by County Councils. The Act also empowered the Lord-
Lieutenant to nominate 17 Senators to represent commerce,
labour, and the scientific and learned professions, with the Lord-
Mayors of Dublin and Cork ex-officio members. The Church of
Ireland (Anglican) at once selected their appointees as did the
Peers and Privy Councillors. The Southern Parliament was
formally opened at Dublin on June 28 with 15 Senators and the
4 Unionist members of the Commons present ; the other elected
members functioned elsewhere as the Dail Eireann.
Following this came the prolonged negotiations of five
months looking to peace and settlement. Toward the close of
1920 there had been many signs pointing in this direction. On
Dec. 6 Archbishop Harty of Cashel, in Thurles Cathedral, plead-
ed earnestly for "Irish peace with justice and honour"; about
the same time Archbishop Gilmartin of Tuam and Cardinal
Logue and Archbishop Walsh of Dublin called for a Truce of
God; the Galway County Council urged a truce and a conference
and sent the Resolution to Mr. Lloyd George. The Rev. Michael
O'Flanagan, Acting President of the Sinn Fein, also sent a tele-
gram to the Prime Minister saying: "You state that you are
willing to make peace at once without waiting for Christmas.
Ireland also is willing. What step do you propose?" De Valera
in New York and the extremists in Ireland repudiated this
message. Mr. Lloyd George at once asked Archbishop P. J.
Clune of Perth, Australia, who happened to be in England, to go
to Ireland and see if anything could be done. After an interview
with Sir H. Greenwood, His Grace went to Dublin early in De-
cember and again on Dec. 8th ; on the 16th he took to Dublin
the terms of a proposed month's truce. It fell through because
the British authorities wanted the surrender of arms by the
Irish Republican Army.
For some months following nothing serious in the way of
conciliation was done. On Mch. 7, 1921, the Earl of Midleton, at
a Dublin Rotary Club meeting, urged Peace and a Resolution
was passed asking the Prime Minister to appoint a representa-
tive of the Cabinet to meet a small conference of Southern
Irishmen with power to find a basis for settlement. Other per-
sonal efforts were made by Shane Leslie, author and Nationalist,
and A. M. Carlisle of Belfast. Then the King at the Ulster
Parliament opening uttered words of earnestness and force
which echoed through the country: "I speak from a full heart
when I pray that my coming to Ireland to-day may prove to be
the first step towards an end of strife amongst her people, what-
ever their race or creed. In that hope I appeal to all Irishmen
to pause, to stretch out the hand of forbearance and concilia-
tion, to forgive and to forget, and to join in making for the land
THE 6xH IRISH HOME RULE BILL; THE PEACE AGREEMENT 299
which they love a new era of peace, contentment, and good-
will." This was followed by a letter from Mr. Lloyd George
(June 24) asking Mr. de Valera to attend a Conference in London
with Sir James Craig "to explore to the utmost the possibility
of a settlement" and to bring such colleagues as he might de-
sire : "We wish that no endeavour should be lacking on our part
to realize the King's prayer, and we ask you to meet us, as we
will meet you, in the spirit of conciliation for which His Majesty
appealed."
Sir James Craig accepted at once; the Southern leader re-
plied that he saw no basis for peace except in the "essential
union" of Ireland and "national self-determination." He sum-
moned a Conference of his own at Dublin to consider the invi-
tation; Sir James Craig declined to attend this but Southern
Unionists — Lord Midleton and three others — were present on
July 4 with Arthur Griffith and Mr. de Valera. On the follow-
ing day General Smuts, with all the glamour of his success in
South Africa around him, and backed by the prestige of an Im-
perial Conference sitting in London, was in Dublin conferring
with the leaders. On July 8 the Prime Minister's invitation
was accepted, tentatively, by De Valera in order "to discuss on
what basis such a Conference as that proposed can reasonably
hope to achieve the object desired"; arrangements at the same
time were made between General Sir Nevil Macready and R. C.
Barton and E. J. Duggan of the Republican Army for a period
of truce ; a Manifesto from De Valera called upon soldiers and
citizens to be the "custodians of the nation's honour" and, at the
same time, to be ready if necessary to resume hostilities.
The meeting took place in London on the 12th, there was no
formal Conference and on the 21st it was stated that no basis
for a Conference had been found; Sir J. Craig had, meanwhile,
also been in London conferring with the Prime Minister. On
Aug. 6th following the Government's announced desire to
facilitate peace parleys, all the members of the Dail Eireann
then in gaol were released ; on Aug. 15 the Government's offer
and policy in the negotiations between Messrs. Lloyd George
and De Valera were published; on the following day Dail
Eireann met in Dublin to consider the proposals and each mem-
ber took an oath in which he swore that "to the best of my
knowledge and ability, I will support and defend the Irish Re-
public and the Government of the Irish Republic^ which is Dail
Eireann, against all enemies, foreign and domestic." The British
standpoint in these negotiations and the issues thus placed be-
fore Parliament and the Dail Eireann had been summarized by
Mr. Lloyd George in the Commons on July 20th :
The British people cannot believe that where Canada and South
Africa, with equal or even greater difficulties, have so signally succeed-
ed, Ireland will fail; and they are determined that, so far as they them-
selves can assure it, nothing shall hinder Irish statesmen from joining
to build up an Irish State in free and willing co-operation with the other
peoples of the Empire. Moved by these considerations, the British
300 THE CANADIAN ANNUAL REVIEW
Government invite Ireland to take her place in the great association of
free nations over which His Majesty reigns. As earnest of their desire
to obliterate old quarrels and to enable Ireland to face the future with
her own strength and hope, they propose that Ireland shall assume
forthwith the status of a Dominion, with all the powers and privileges
set forth in this document. By the adoption of Dominion status it is
understood that Ireland shall enjoy complete autonomy in taxation and
finance; that she shall maintain her own courts of law and judges; that
she shall maintain her own military forces for -home defence, her own
constabulary and her own police; that she shall take over the Irish
postal services and all matters relating thereto, education, land, agri-
culture, mines and minerals, forestry, housing, labour, unemployment,
transport, trade, public health, health insurance, and the liquor traffic;
and, in sum, that she shall exercise all those powers and privileges upon
which the autonomy of the self-governing Dominions is based, subject
only to the considerations set out in the ensuing paragraphs. Guaran-
teed in these liberties, which no foreign people can challenge without
challenging the Empire as a whole, the Dominions hold each and sever-
ally by virtue of their British fellowship a standing amongst the nations
equivalent, not merely to their individual strength, but to the combined
power and influence of all the nations of the Commonwealth. That
guarantee, that fellowship, that freedom, the whole Empire looks to
Ireland to accept.
The exceptions were that (1) the Royal Navy alone must
control the seas round Ireland, and must have in Irish harbours
and on Irish coasts the rights and liberties essential for naval
purposes; (2) the Irish Territorial Force should within reason-
able limits, conform in numbers to the military establishments
of the other parts of these Islands; (3) Great Britain to have
all necessary facilities for the development in Ireland of de-
fence and communication by air; (4) voluntary recruiting for
the regular Naval, Military, and Air Forces of the Empire
to be permitted throughout Ireland; (5) no Protective duties
or other restrictions to be placed by either the British or the
Irish Government on the flow of transport, trade, and commerce
between any ports of the British Isles ; (6) Ireland to assume
responsibility for a share of the National Debt and the liability
for war pensions, the share (failing agreement) being deter-
mined by arbitration. It was urged that the Settlement should
take the form of a Treaty embodying these conditions ; as to
Ulster, under no condition would the British Government con-
sent to "any proposals which would kindle civil war in Ireland" ;
internal questions connected with establishment as a National
unit or as Northern and Southern Ireland would be left to Irish
negotiation.
Such were the proposals placed in definite form before the
Irish leaders as a basis for negotiation. On Aug. 10 acceptance
was refused by Mr. de Valera and his colleagues in Dublin ; the
Republican leader declared the best course to be "amicable but
absolute Separation"; described Dominion status for Ireland as
illusory and impossible ; intimated readiness to accept "a certain
treaty of free association" with the British Commonwealth
group of nations and stated, as to Ulster, that "we cannot admit
the right of the British Government to mutilate our country."
THE 6xH IRISH HOME RULE BILL; THE PEACE AGREEMENT 301
Mr. Lloyd George had replied on 13th Aug. in very definite
terms. Speaking of the claim for Secession he was emphatic:
"No such right can ever be acknowledged by us. The geo-
graphical propinquity of Ireland to the British Isles is a funda-
mental fact. The history of the two Islands for many centuries,
however it is read, is sufficient proof that their destinies are in-
dissolubly linked. Ireland has sent members to the British Par-
liament for more than 100 years. Many thousands of her people
during all that time have enlisted freely and served gallantly in
the Forces of the Crown. Great numbers, in all the Irish Prov-
inces, are profoundly attached to the Throne. These facts per-
mit of one answer, and one only, to the claim that Britain should
negotiate with Ireland as a separate and foreign Power."
Meantime, General Smuts had written to Mr. de Valera
(Aug. 4) at great length. His points as to Ulster were strongly
put: "My conviction is that for the present no solution based
on Ulster coming into the Irish State will succeed; Ulster will
not agree, she cannot be forced, and any solution on those lines
is at present foredoomed to failure. I believe that it is in the
interest of Ulster to come in, and that the force of community
of interests will, over a period of years, prove so great and com-
pelling that Ulster will herself decide to join the Irish State."
As to the rest, he urged concentration upon a free constitution
for the South of Ireland, as the first stage in a process through
which South Africa had already passed: "Freedom will lead
inevitably to unity; therefore begin with freedom. As to the
form of that freedom, here, too, you are called upon to choose
between two alternatives. To you, as you say, the Republic is
the true expression of national self-determination. But it is
not the only expression; and it is an expression which means
your final and irrevocable severance from the British League.
And. to this, as you know, the Parliament and people of this
country will not agree/' He urged acceptance of the Dominion
status offered. Sir James Craig intimated that Ulster would
not come into the Union, but would do nothing to block the way
to a fair settlement for Southern Ireland.
The failure in negotiations then came before Dail Eireann
and in his speeches (Aug. 16-17) Mr. de Valera was explicit
against further negotiations or any acceptance of the proposed
terms ; the answer of that body to the Prime Minister on Aug.
25 was forwarded by its President and was a straight advocacy
of Independence ; the only basis for discussion and peace was
said to be "the principle of government by consent of the gov-
erned." Mr. Lloyd George answered on Aug. 26 with an ex-
pression of deep disappointment and the ringing declaration that
under his proposals Ireland would be free within its own shores,
be free in every aspect of national activity, national expression,
and national development and, therefore, would have government
by the consent of her governed. He quoted Grattan and
O'Connell, Davis and Parnell against talk of separation and in-
302 THE CANADIAN ANNUAL REVIEW
stanced the United States as a nation that, like the British,
would not accept disintegration. Meantime, in the Commons on
Aug. 19, the Prime Minister had declared he could do no better
in terms : "We have put forward everything we thought it was
possible to concede in order to purchase peace and the good will
of the Irish people. It is not a question of working out the
terms, it is a question of explanation, of elucidation and elabora-
tion, and not of change in the terms. The outline cannot be
altered, nor the basis changed/'
The reply of the Bail Eireann was the re-election of Mr. de
Valera (Sept. 2) as President; the election one by one of new
members of his Cabinet — Foreign Affairs, Home Affairs, De-
fence, Finance, Local Government, Economics, Fine Arts, Pub-
licity, Education, Labour, Trade, Agriculture and Fisheries; a
statement* as to the financial situation presented by Michael
Collins, Minister of Finance. Mr. Collins moved and the Dail
approved, a new Loan in Ireland of £500,000 and in the United
States of £20,000,000. He explained that: "All the arrange-
ments are complete in the United States, and they only await
the formal word to go ahead. When we started as a Dail in
January, 1919, we started our financial career on a loan of £1,000.
We were fortunate in getting from the great mass of the people
subscriptions to the Self-Determination Fund — the back-wash
of subscriptions to the Anti-Conscription Fund — amounting to
£65,000. That is really the only money we had for a long time
after starting, until at a meeting of the Dail the loan of £250,000
was passed for immediate issue in Ireland. That loan eventually
realized £400,000 and the loan in the United States just over
$5,000,000." Under date of Aug. 30 Mr. de Valera wrote a long,
argumentative letter to the British Premier stating that the
Dail position was "irrevocable" ; if further conference took place
it must be with plenipotentiaries "untrammeled by any condi-
tions save the facts."
On Sept. 7th Mr. Lloyd George made another effort and
sent a note from Inverness to Mr. de Valera which, after stating
the impossibility of separation or a republic, proceeded: "You
will agree that this correspondence has lasted long enough. His
Majesty's Government must, therefore, ask for a definite reply
as to whether you are prepared to enter a Conference to ascer-
tain how the association of Ireland with the community of na-
tions known as the British Empire can best be reconciled with
Irish national aspirations." The reply (Sept. 12) accepted the
invitation but reiterated the position of Ireland as a "Sovereign
State." The Prime Minister's response was a telegram from
Scotland (Sept. 15) cancelling arrangements for the Conference
and pointing out that the Government had always refused to
recognize this claim and must continue to do so. Further des-
patches were interchanged and, on Sept. 19, the Irish leader in-
timated his willingness to enter a Conference free on both sides,
*Note — The Irish Examiner, Dublin, Sept. 3, 1921
THE 6rH IRISH HOME RULE BILL; THE PEACE AGREEMENT 303
and without prejudice should agreement not be reached. Final-
ly, on Oct. 11, Mr. Lloyd George issued a new invitation which
was at once accepted.
The Conference opened at No. 10 Downing Street on Oct.
10 with D. Lloyd George, Lord Birkenhead, Winston Churchill,
Sir L. Worthington-Evans, Sir H. Greenwood and Sir Gordon
Hewart as the British representatives ; Arthur Griffith, Michael
Collins, R. C. Barton, E. J. Duggan and C. Gavan Duffy were
the Irish delegates. Thomas Jones and Lionel Curtis were
the British Secretaries, Erskine Childers and John Chartres the
Irish ones. At the same time Mr. de Valera issued an Appeal
to the people to stand by their principles no matter what the
result in London. It was not a peaceful or conciliatory docu-
ment. Then came the De Valera cable to the Pope which threw
fresh difficulties in the way of the Conference by repudiating
allegiance to the King; this was met by the Delegates declaring
its terms to be not binding upon them. In the Commons on Oct.
31 a direct mandate was given the Government to proceed with
its negotiations, by a vote of 439 to 43 ; Mr. Lloyd George had,
meanwhile, to reconcile British policy and Southern Ireland pro-
posals in the Conference and, any result achieved, with Ulster
sentiment outside the Conference and with the views of his
Unionist supporters in Parliament. On Dec. 6th it was announc-
ed that this difficult task had been measurably accomplished;
that a Treaty had been arranged and the Agreement signed by
all the Delegates. By the Agreement an Irish Free State was
to be created with the following as the basic and fundamental
clauses :
1. Ireland shall have the same constitutional status in the Com-
munity of Nations known as the British Empire as the Dominion of
Canada, the Commonwealth of Australia, the Dominion of New Zealand,
and the Union of South Africa, with a Parliament having powers to
make laws for the peace, order and good government of Ireland, and
an Executive responsible to that Parliament, and shall be styled and
known as the Irish Free State.
2. Subject to the provisions, hereinafter set out, the position of the
Irish Free State in relation to the Imperial Parliamemt and Government
and otherwise shall be that of the Dominion of Canada, and the law,
practice and constitutional usage governing the relationship of the
Crown, or the representative of the Crown, and of the Imperial Parlia-
ment to the Dominion of Canada shall govern their relationship to the
Irish Free State.
3. The representative of the Crown in Ireland shall be appointed in
like manner as the Governor-General of Canada and in accordance with
the practice observed in the making of such appointments.
4. The oath to be taken by Members of the Parliament of the Irish
Free State shall be in the following form: I do solemnly
swear true faith and allegiance to the Constitution of the Irish Free
State as by law established and that I will be faithful to H. M. King
George V., his heirs and successors by law, in virtue of the common
citizenship of Ireland with Great Britain and her adherence to and
membership of the group of nations forming the British Commonwealth
of Nations.
5. Neither the Parliament of the Irish Free State nor the Parlia-
ment of Northern Ireland shall make any law so as either directly or
304 THE CANADIAN ANNUAL REVIEW
indirectly to endow any religion or prohibit or restrict the free exercise
thereof or give any preference or impose any disability on account of
religious belief or religious status or affect prejudicially the right of
any child to attend a school receiving public money without attendnig
the religious instruction at the school or make any discrimination as
respects State aid between schools under the management of different
religious demominations or divert from any religious denomination or
any educational institution any of its property except for public utility
purposes and on payment of compensation.
Arrangements were made to exclude Ulster or Northern
Ireland, if desired by the Province, and as to details regarding
Ulster guarantees and a Boundary Commission, Harbour facili-
ties, Defence, Debt and Finance. Open Ports and other relations
and safeguards. British troops were to leave Ireland within one
month of ratification of the Treaty and the King at once (Dec.
9) issued a proclamation of amnesty for all Irishmen suffering
imprisonment. The press and public of Great Britain greeted
the news with enthusiasm ; in Australia and Canada there was
general satisfaction expressed and in the United States only the
more violent organs of extremist thought, such as the Irish
World, opposed the Agreement. The Australian, New Zealand
and South African Prime Ministers cabled congratulations; the
Australian Senate unanimously expressed its approval as did
the Premiers of New South Wales and South Australia ; Cardinal
Logue (Times interview Dec. 12) urged acceptance of the Treaty
and deprecated opposition in the Dail. In Dublin Mr. de Valera
at once announced his refusal to present the Treaty to the Dail
Eireann for ratification and declared the terms of the Agreement
to be "in violent conflict with the wishes of the majority of this
nation, as expressed freely in successive elections during the
past three years." In a further statement he used words which
were of future import: "The honour of the nation is not in-
volved unless and until the Treaty is ratified."
In the Weekly Despatch of London Sir Hamar Greenwood de-
clared that "achievement, not humiliation, is the note in the
Treaty of peace with Ireland, for the Irish race throughout the
world"; Ulster definitely refused to join the new Free State.
The British Parliament, especially called for Dec. 14, was opened
in great state and gave an ovation to the Prime Minister while
the King's Speech declared that : "It is my earnest hope, by the
Agreement now submitted to you, that the strife of centuries
may be ended, and that Ireland as a free bartner in the common-
wealth of nations forming the British Empire, will secure ful-
fillment of the nation's ideals." Mr. Lloyd George summed up
the situation in these words : "Here is the Agreement. On the
British side, allegiance to the Crown, partnership in the Em-
pire, security for our shores, and the non-coercion conditions
that we have always laid dawn. On the Irish side there is one
supreme condition : that the Irish people as a nation shall be free
in their own land to work out their own national destiny in their
own way, and within their own boundaries."
CANADA AND IRELAND; RIVAL OPINIONS AND ACTION 305
After an historic debate the Agreement passed the Com-
mons by 401 to 58 and the Lords by 166 to 47 votes. In the Dail
Eireann Mr. de Valera proposed a substitute for the oath of
allegiance but was defeated by a large majority on Dec. 15th;
this was followed by bitter debates with Griffith and Collins de-
fending the Treaty and De Valera, Austin Slack, Cahal Brugha,
Count Plunkett, Erskine Childers and John MacSwiney leading
the opposition. An adjournment was taken and on Dec. 23
opinion expressed by telegrams from 25 Counties in Southern
Ireland apparently showed 90 per cent, favourable to the Treaty.
At Queenstown on Dec. 25 Bishop Browne of Cloyne asked the
4,000 people present to support the peace Agreement and issued
a pastoral urging public meetings and a public demand to the
Dail for its support. Sinn Fein journals such as the Enniscorthy
Echo, the Kilkenny People, the Carlaw Nationalist, the Cavan
Anglo-Celt, the Ulster Herald, the Derry Journal, the Donegal
Vindicator, the Tipperary Star, all urged acceptance. Resolu-
tions in favour of ratification poured into Dublin and up to the
end of the year 16 county councils, 46 urban and rural district
councils, 22 Sinn Fein executive bodies, 20 Sinn Fein clubs, three
corporations, 8 town commissioners, 9 boards of guardians, 32
farmers' associations and 16 other public bodies had demanded
ratification. Eventually the Dail Eireann ratified the Treaty.*
In this development Canada's place, its loyalty and practical
co-operation, its liberty and example, had a great influence. In
the spirit which made conciliation possible and compromise prac-
ticable the King's personal influence was very marked and was
acknowledged by all who understood the situation. In the de-
tails of negotiation and correspondence the wonderful ability of
Lloyd George was dominant; in certain respects the influence
of General Smuts had been very effective. The New York
Tribune of July 10th, when negotiations began, gave another
tribute which must not be overlooked: "For the public change
in attitude the Bishops and clergy of Southern Ireland are en-
titled to great credit. For more than a year they have opposed
the policy of the uncompromising Sinn Fein element. They
have run the risk of alienating the most loyal daughter of the
Church, nevertheless they have persisted in ameliorating labours
that have been a mighty influence in relaying the foundations of
peace."
During all the Home Rule controversies of
Canada and latter years, Canada had been more or less an object
Ireland: of discussion, reference and conclusion; when the
Action^in"* question of Dominion status for Ireland appeared a
the Dominion, practicable one the experience, position, and at-
" tributes of Canadian government became vitally im-
portant. At this juncture it was an interesting fact that the
real administrator of Irish affairs was a Canadian born and
•Note.— On Jan. 7, 1922, it was approved by 64 votes to 57; Mr. de Valera resigned
the Presidency and Arthur Griffith was elected President of the Dail Eircann with
Michael Collins as head of a Provisional Cabinet.
11
306 THE CANADIAN ANNUAL REVIEW
bred; Lieut.-Col. the Rt. Hon. Sir Hamar Greenwood, Bart.,
K.C., M.P., had been sworn in as Chief Secretary for Ireland on
May 6, 1920; courageous, able and energetic, he had made
his mark in everything with which he was associated during a
rapid rise in public life. It was claimed by those who supported
the Dominion status ideal that Canada's position meant liberty
and loyalty, self-government and Empire unity, prosperity and
absolute control of its own resources and interests, freedom, in
the end for Ulster, as for Quebec, within its jurisdiction. Op-
ponents of the older Conservative type in England urged that
Dominion status also meant control of Tariffs and Defence
which, in Ireland, would be dangerous ; opponents in Ireland of
the republican, De Valera, type declared that it meant allegiance
to the King, unity with the Empire, co-operation in foreign
policy and was, therefore, inadmissable.
There were, in this year, two clearly denned opinions in
Canada as to the Irish question. One element was represented
by the Self-Determination League in Canada, of which Lindsay
Crawford was President, with branches in the chief centres ;
eyen in this organization, however, there were many degrees of
feeling and expression and many who wanted Home Rule and
not Independence for Ireland. The other was the Orange
Order with uncompromising support of Ulster, a vigorous de-
fence of British policy and action in Ireland and keen hostility
to the Church of the Irish majority. Mr. Crawford had the out-
side support of J. S. Ewart, K.C., Henri Bourassa and other
Canadian Nationalists; his organ The Statesman, published in
Toronto, was a clever, bitter journal of extreme opinions in
everything touching the British Empire. Its character may be
illustrated by two or three editorial statements. On Jan. 29,
1921, it was said: "To ask the Irish in Canada to honour a flag
stained with the blood of their people and to declare loyalty
to a Throne that rests upon the might of armed assassins, is to
ask them to profane the temples of their fathers, and to betray
their Motherland in the hour of her greatest agony." On June
llth Lord Byng's appointment as Governor-General was de-
scribed as showing "a studied contempt for national sentiment
in Canada" ; on July 16 a long article by Judge D. F. Cohalan of
New York was published in the journal and included a state-
ment that "the English have immense holdings to the north of
us, in Canada," which "should be turned over to the people in
order that they may establish for themselves republican in-
stitutions."
The Self-Determination League for Ireland. Assisted by
Miss Katherine Hughes, a clever and vehement supporter of his
opinions, Mrs. Rose Henderson, a well-known Socialist speaker
of Montreal, and others, Mr. Crawford succeeded, during 1920
and 1921, in establishing the Self-Determination for Ireland
League of Canada and Newfoundland with branches in all the
Provinces. At Ottawa on Oct. 17, 1920, the League had been
organized as a National Society with 700 delegates present
CANADA AND IRELAND; RIVAL OPINIONS AND ACTION 307
representing every Province in Canada, and F. S. Cahill, M.P., in
the chair. The other chief speakers were Lindsay Crawford, A.
Lavergne and C. J. Foy, K.C., of Perth. A long letter was read
from Mr. de Valera at Washington which concluded with an ex-
pression of thanks from the people of Ireland to the League :
"They are confident that no enlightened Canadian will be able
to stand by and see unoffending people massacred in an attempt
to force them under a rule and sovereignty under which they
do not desire to live — a rule which is as hateful to them as the
rule of Germans was hateful to the Belgians." The delegates
stood and cheered and then Mr. Foy gave his view of the situa-
tion : "If Ireland wishes to have Home Rule, a Republic, or to
remain subservient to Great Britain, I am satisfied. I will be
content with any form of Government the Irish people accept."
Mr. Lavergne described himself as a British subject by birth
but as being ashamed of it when he thought of England's con-
duct in Ireland.
A National Council of the League in Canada was created
with Mr. Crawford as President and the 9 Provincial Presidents
as Vice-Presidents ; the Ontario Provincial League was organ-
ized with Mr. Foy as President. Only two Resolutions* were
passed. The first denounced reprisals by Police in Ireland,
recognized the right of Ireland to self-government, and pledged
the League to support the Sinn Feiners ; the second condemned
any attempt to curtail the rights of the French language in
Canada, and expressed sympathy for the French-Canadian people
in their maintenance of schools and colleges of their own langu-
age. At the public meeting in the evening Mrs. Hector Prenter
of Toronto spoke as a member of the League and the Inde-
pendent Labour Party; she denounced the press and people of
Canada as uneducated and declared it was necessary to keep
the spirit and gospel of Sinn Fein "brotherhood" before the
public. Mr. Crawford concluded his speech with the remark
that "we go to-morrow to meet the President of the Irish
Republic," and the meeting broke up after singing "God Save the
King" !
A short time before this, at Quebec City, on Aug. 29, the
Quebec Provincial Branch of the League had held its first con-
vention. F. S. Cahill, M.P., Quebec, was elected President and
M. Monahan, Quebec, P. Doyle, Montreal, Armand Lavergne,
K.C., Quebec, and Lucien Cannon, M.P., Vice-Presidents. At a
public meeting addresses were delivered by Messrs. Cahill and
Lavergne and Miss Hughes and a telegram sent to Mr. de Valera
at Plattsburg, New York, as follows: "The delegates of the
League of Self-Determination for Ireland in Canada, assembled
in Provincial Convention in Quebec City, greet and pledge un-
swerving loyalty to the principles upon which your Government
is established." The following Resolution was passed:
The Quebec Provincial Convention of the Self-Determination League
of Canada, while declaring our abiding loyalty to Canada, her laws and
N*ote — Toronto Globe report of meeting.
308 THE CANADIAN ANNUAL REVIEW
institutions, are resolved that we uphold Ireland's right to complete
national Independence, that we are organized to inform the Canadian
public of the facts which maintain the justice of recognizing the form
of government which now exists and functions in Ireland by the consent
of the overwhelming majority of the people of Ireland and, moreover,
to diffuse a more intimate knowledge of Irish history and stimulate a
just pride in Irish ideals and achievements, thus enabling our people to
contribute in the highest degree to the enrichment of Canadian culture.
Prior to these incidents and .afterwards Mr. Crawford trav-
elled much and made many speeches with varied experiences.
The San Francisco Examiner reported him as saying in that city
on Jan. 30, 1920, that: "If Ireland successfully maintains its
right of national evolution, the results to Canada and the other
Dominions will be incalculable. We, in Canada, realize more
and more clearly what Lincoln meant when he said that 'No
Government can endure half slave, half free'." On May 11, fol-
lowing, the Winnipeg Kiwanis Club refused tb hear Mr. Craw-
ford further after he had made a reference to Englishmen as
"foreigners," and they closed the luncheon with "Rule Britan-
nia." Early in December he spoke, or endeavoured to do so, at
various places in the Maritime Provinces with mixed results. A
Fredericton meeting on the 3rd with Hon. P. J. Veniot, M.L.A., in
the chair was broken up by 200 returned soldiers who asked
questions about Secession of Ireland from the Empire, De Valera
and a Republic, etc. Mr. Crawford said the League was not in
favour of an Irish Republic. At Moncton, N.B., on Dec. 7th, his
reception was even worse and a stormy meeting concluded with
the crowd forcing the speaker to kiss a Union Jack. Elsewhere
he had good hearings and at a Quebec meeting on the 9th stated
that the League had 200,000 members in Canada.
Speaking at Detroit to the "Friends of Irish Freedom"
organization, he was locally reported as saying: "Why do we
want Independence in Ireland? Why will we not accept Do-
minion Home Rule? Because we could not, be satisfied with
that form of government, any more than they are satisfied with
it in Canada or Australia or South Africa." In April, 1921, a
Western tour was undertaken and at St. Boniface, Man., Mr.
Crawford addressed a crowded meeting on Apr. 3rd and a
smaller audience in Winnipeg, on the 4th, with the Economic con-
dition of Ireland as his subject. At one of two meetings in
Regina (Apr. 12) there was some trouble from the War vet-
erans ; in Edmonton on the 17th there was a large gathering and
here and elsewhere he described the chief Irish issue as economic
— an industrial North against an agricultural South.
As Vancouver on Apr. 22 there were stormy scenes during
an attempted meeting and any others were forbidden by Mayor
R. H. Gale. At Calgary on May 1st Mr. Crawford stated that
Canada had self-government and that was what Ireland want-
ed. At St. Jean, Man., on May 14 he told a large audience that
the chief difficulty in the way of Canada's Independence was the
fear entertained by the French population that it would place
CANADA AND IRELAND; RIVAL OPINIONS AND ACTION 309
the French at the mercy of those who had declared war on the
French tongue and French culture. A meeting of the League
was held in Winnipeg on May 15 and, in reply to a question as
to England's safety with an independent Ireland, Mr. Crawford
said that a British guarantee of Ireland's neutrality would en-
sure its friendship. At Ottawa on his return from the West Mr.
Crawford (May 23) charged "criminal collusion between Police
and the rowdy element" — instigated by Orange interests — as the
cause of his troubles.
Others expressed similar views. Addressing a League meet-
ing in Montreal on May 16, Mr. Lavergne denounced England as
"the greatest murderer of small nations," dealt with alleged
English crimes in Ireland, and declared that he would, as a
Christian, be a rebel so long as the Union Jack gave shelter to
murderers. From Mr. Lavergne to Osmonde Grattan Esmonde
was a far cry, but on June 20 the League in Montreal heard this
"Special Envoy of the Irish Republic to Australia." Mr.
Esmonde was a son of Sir T. Grattan Esmonde, Bart., a veteran
Home Ruler; he had been refused admission to Australia and
had returned via Vancouver where he was allowed to land on
condition that he made no speeches ; the promise, if made, as
stated in the press, was broken and he was arrested, tried for
sedition and convicted ; he was released on condition that he re-
turned to England without further public action. His speech at
Montreal was a vehement exposition of Sinn Fein opinion— -end-
ing with the hope that "henceforth French-Canadians and Cana-
dian-Irish would fight together for faith and liberty."
In this city on Nov. 7 a National Convention of the League
was held with 500 delegates present; Mr. Bourassa was the
chief speaker and, during nearly three hours, dealt with the
Irish question; he claimed it to be a religious issue primarily,
and a minority question secondarily, and that it would be solved
if the fundamental principle of government by majority rule
was applied. A cabled "assurance of continued support" was
sent Mr. de Valera and a Resolution passed protesting against
British imprisonment for political offences ; renewing pledges of
friendly co-operation with French-Canadians ; urging the Cana-
dian study of Irish life, problems, history, literature, language,
games, etc. ; expressing "our earnest hope that the negotiations
now proceeding may avert the dread alternative of a resumption
of war, but no settlement can be affected, of an honourable and
lasting character, that is not in consonance with the will of the
Irish people." Mr. Crawford was re-elected National President
and upon the Council was Bishop O'Leary of Charlottetown. •
Following this meeting and other events Hugh O'Neill,
President of the New Brunswick Branch of the League, cabled
(Dec. 9) congratulations to Mr. de Valera upon the signing of
the Treaty ; at Ottawa on Dec. 19 the Ontario Province Branch
met in convention with C. J. Foy in the chair and declared the
ultimate goal of the League in Canada to be "complete inde-
310 THE CANADIAN ANNUAL REVIEW
pendence for Ireland."* Meantime, the League had, through
T. R. Donovan, National Secretary, of Ottawa, written to Mr.
Meighen, as Prime Minister, on May 24 requesting him at the
coming Imperial Conference to make representations to the
British Government as to the position of Ireland. His reply
described the constitutional relations of the countries concerned
and cited the 1882 reply of the British Government to Canada's
Resolution as to Home Rule :
It has always been the position of Canadian Governments that any
interference from other parts of the Empire in what are regarded as
Canadian domestic affairs is both improper and unconstitutional; and
there is no doubt that the Canadian people regard this as a cardinal
principle. Among what they regard as Canadian domestic affairs there
is equally no doubt that they include the relations between the con-
stituent parts of the Dominion. Any step from outside, whether by way
of tendering advice or otherwise, which could be in any sense regarded
as an expression of opinion or an intervention concerning such relations
would, therefore, be strongly resented by Canadians. This being so it is
incumbent upon Canadian Governments to refrain from any interven-
tion in the domestic affairs of other parts of the Empire. The repre-
sentations you ask me to make are concerned with the relations between
the constituent parts of the United Kingdom, and these, under the rule
we insist upon applying in our own case, are the domestic affairs of that
country.
Ulster and the Orange Order in Canada. The Loyal Orange
Order in Canada at this time stood vigorously upon the plat-
form of Ulster ; as Sir Edward Carson and Ulster spoke it acted
— with the addition of supporting Protestantism in any purely
Canadian issues which might develop ; in a country where so
large a part of the population was Catholic, there was generally
some subject available for discussion! During 1920 and 1921
the Sentinel newspaper of Toronto represented the thought of
this Order with vehement attacks upon Sinn Fein in all its phases
and upon Roman Catholicism as being, it was claimed, respon-
sible for the situation. The Ulster delegation which visited the
United States and Canada in 1920, in order to place their side of
the case before the people — especially of the United States —
met with notable welcomes in New York, Pittsburg, Philadel-
phia, Columbus, Dayton, Detroit, New Orleans, Los Angeles and
Seattle ; received, also, an enthusiastic reception at Toronto and
Ottawa and other points. Composed of William Coote, M.P.,
Rev. A. Wylie Blue, Rev. L. W. Crooks, Rev. William Corkey,
Rev. F. E. Harte, Rev. Edward Hazelton and Rev. C. Wesley
Maguire, the Orangemen of Toronto on Feb. 10-12 turned out
in force to welcome the visitors.
. A luncheon tendered by 150 Protestant ministers and a
Reception by the Mayor and Council in the City Hall was fol-
lowed by an Orange meeting in the County Orange Hall when
Mr. Coote proclaimed, amid wild applause, that : "The only force
that stands firmly arrayed against Fenianism, Bolshevism, Ter-
rorism, and Sinn Feinism in Ireland to-day is, as regards Ulster,
*Note — Despatch in Toronto Globe, Dec. 20, 1921.
CANADA AND IRELAND; RIVAL OPINIONS AND ACTION 31 1
the institution of Orangeism. x x x With rebel Ireland
(under Home Rule) as a base for German submarines during
the War the end might have well been otherwise. It was Ulster
that saved the Empire in this emergency by refusing to have
Home Rule." He declared that the Roman Catholics were
getting control of Education in the United States with, already,
60 per cent, of the teachers belonging to that faith. So with
other speeches. At the Empire Club luncheon on the 12th the
speakers dealt largely with economic conditions in Ireland. Mr.
Coote declared that landlordism — an evil from which the country
had suffered — was now gone: "The farmers have been given
£150,000,000 by the British Government at 3}4 per cent, interest
to buy out their land, so that eventually the land will be as free
as the Canadian prairies. After helping the farmer the Govern-
ment has turned to the labourer and has furnished about 30
million pounds at 2y& per cent, to provide him with cottages —
well-built stone cottages with slate roofs, in acre and half-acre
plots. There are 80,000 of these and the cottagers pay only
about 30 to 36 cents per week."
In the evening three crowded meetings were held and ad-
dressed by the Delegates and a Resolution passed at each : "We
approve the action of the people of Ulster before, during and
since the War, and call upon His Majesty's Government to main-
tain the liberties of the people of Ulster and the Protestants of
Ireland, the integrity of the United Kingdom and the Empire
principles for which our Canadian sons laid down their lives in
the Great War." At Ottawa on the 13th the delegates were
tendered a luncheon by the Ministerial Association, a dinner at
the Chateau Laurie r by the County Orange body while three
large meetings were held in the evening. Mr. Coote at one of
these was militant and stated that there were in Ulster 200,000
Orangemen who could be mobilized in two days ; all the speak-
ers freely denounced the Roman Catholic Church. On the 14th
they were entertained at a Y. M. C. A. luncheon and visited the
Parliament buildings.
The Orange Order at all its meetings during 1921 put itself
on most vigorous record in denunciation of Sinn Feinism ; the
Self-Determination League of Canada also came in for much
criticism. At Chilliwack, B.C., on Feb. 16 the Grand Master of
the Grand Lodge of that Province (Rev. C. W. Whittaker) de-
clared that: "In Canada the League is merely another name
for Sinn Fein, and its leaders, if one must judge by their ad-
dresses, are disloyal and traitorous. Our brethren in other
Provinces have prevented it spreading as fast as it had hoped."
The Grand Lodge of Quebec, meeting in Montreal on Mch. 1st,
passed Resolutions of "sincere gratitude to Sir Edward Carson
for his brave and sturdy leadership of our loyal Ulster" ; of con-
gratulation to Sir James Craig as the new Ulster leader; of
praise to Mr. Lloyd George "for his unswerving determination
to uphold the principles of British law and freedom in Ireland."
312 THE CANADIAN ANNUAL REVIEW
To the Grand Lodge of Ontario West, at Niagara Falls on
Mch. 9, Donald Sharpe, G.M., in his address claimed that Sinn
Fein was "the guiding and controlling force in a world-wide con-
spiracy to wreck the British Empire" ; Stewart Adrian, G.M., of
the Saskatchewan Grand Black Chapter, declared at Regina on
Mch. 1st that the cry of Ulster was from "a heart almost broken
in despair at the thought of cruel and unjust oppression" under
Home Rule. The Grand Black Chapter of Ontario East (Lind-
say, Mch. 15) passed a Resolution denouncing "the seditious,
anti-British propaganda of the Self-Determination League";
and that of Alberta, at Edmonton on Mch. 15, passed Resolu-
tions describing the propaganda of the Self-Determination
League as tending to disrupt the Empire, while it, also, urged
"One School and One Language" for all Canada.
When the Ulster elections resulted in a Unionist victory, a
large meeting in Toronto on June 7, after speeches from Fred.
Dane, Mayor T. L. Church and H. C. Hocken, Grand Master
in Canada, cabled congratulations on the "magnificent results of
the recent elections and the determined expression to remain
within the Union." On July 12 there were some fiery Toronto
speeches at Exhibition Park. Mr. Lloyd George had just invited
Craig and De Valera to a Conference. R. Clements Lyttle, a!
Belfast Orangeman, said to the gathering : "I would to God thjat
we had the lads who laid down1 their lives and sleep withlyour
Canadians on the Somme, and there would be no peace con-
ference to-day." Dr. Charles Sheard, M.P., (Globe report)
stated that Lloyd George in Conference was dealing with men
"who have exhausted every crime, who have attacked civilization
itself and who have abused every law." H. C. Hocken devoted
himself to the Separate School issues in Canada. All over the
country similar meetings were held and speeches made.
At Ottawa Hon. W. D. McPherson, K.C., Deputy Grand
Master of British America, delivered a careful address upon the
Order and its work: "The Orange Association in Canada has
been in existence for almost a century. It was founded to main-
tain the open Bible ; to resist religious persecution, not to im-
pose it upon others ; to preserve religious freedom and civil
liberty for the people of Canada. From its formation it has
been a distinct and powerful influence for British connection and
a sturdy if not always successful opponent of clerical aggres-
sion." At the 9th annual Meeting of the Grand Orange Lodge of
British America, Toronto, on July 27, H. C. Hocken, M.P., Grand
Master, stated that nearly 8,000 new members had joined in the
past year. As to Ulster: "If the negotiations now proceeding
fail it will not be the fault of Northern Ireland. All it asks is
security within the Empire to work out its new institutions."
He described the Self-Determination League as a "disloyal
organization" and stated that "in every centre where its advo-
cates attempted to rouse dissatisfaction it was met by the strong
and determined opposition of the loyal members of our Order."
CANADA AND IRELAND; RIVAL OPINIONS AND ACTION 313
On July 25 the Grand Black Chapter of British America met
at Toronto and W. H. G. Armstrong of Saskatoon, Grand
Master, referred to the pending" negotiations, denounced the
Sinn Fein as having organized "a reign of terror" in Ireland and
fervently hoped that the loyalty and institutions of Ulster would
be safeguarded. To the Master of L.O.L. 876, North Bay, came
a letter, dated Oct. 19, from Sir James Craig in which he ex-
pressed thanks for good wishes and added: "The people here
are even more determined than at any other time in their history
to stand fast by the British Empire, to rejoice in its achieve-
ments, and to bear their rightful share of its burdens. No mat-
ter from what source the attack may come, we will honourably
maintain the position — much the same as your own — as an in-
vulnerable outpost of Great Britain and the Empire."
Such were the opposing and antagonistic views of two
vigorous sections of Canadian public opinion at this period; in
between them was the great mass of the people. As extreme
opinions always react in an opposite direction it was, perhaps,
natural that the Orange leaders would claim greater growth
from the propaganda of the Self-Determination League ; out of
this latter movement, also, came the British Empire League of
Canada. Rev. Kennedy H. Palmer of Ottawa was the Secretary
and organizer and he stated to the press on Jan. 4, 1921, that
branches were being formed in several centres, that all members
had to be of Protestant denomination as well as their wives or
husbands, and that "the main object of the League, to* be always
held in view, is the continuance, by all fair means, of British
ideals, customs, language and patriotism in all parts of the
Empire — one King, one flag, one people, one school, and one
language, with equal rights to all." The possibilities for con-
troversy around such an organization in a country like Canada
were obvious. Branches, however, were formed during the
year in Halifax and Vancouver, and a stormy meeting was held
in Toronto on Feb. 17.
Taking Canada as a whole and Canadians of English, Irish,
Scotch or French extraction, Catholic and Protestant alike, the
news in December of a Treaty between Britain and the Sinn
Feiners, of a possible peace and settlement of the age-long
problem, was received with undoubted and deep-seated satisfac-
tion. A word must be said as to the attitude of the Canadian
Catholic Hierarchy. It was, upon the whole, one of aloofness
and, in view of 10 or more Bishops of the Church in Canada
being of Irish extraction, it was notably fair. Bishop Mac-
Donald of Victoria, B.C., issued a Pastoral in December, 1920,
declaring that "self-determination as a full measure of Home
Rule within the Empire, is what we stand for both as Catholics
and Canadians" ; in reply to criticisms by The Statesman he wrote
that journal (Feb. 26, 1921) stating that it was not "compatible
with our position as Canadians to help Ireland to cut herself
adrift from the Empire." Archbishop Sinnott of Winnipeg gave
314 THE CANADIAN ANNUAL REVIEW
a contribution in January to the cause of Irish Relief or, as he
described it, in a covering letter, "the relief of expelled workers
and their dependents, who have been the victims of religious in-
tolerance and bigotry in the city of Belfast."
Archbishop Bruchesi of Montreal accepted a place on the
local Committee for Irish Relief. Bishop Fallen of London,
Ont., a well-known loyalist and, in some respects, an Imperial-
ist, felt very deeply at this time the woes of Ireland and resented
bitterly the policy of the British Government and, particularly,
the Black and Tan reprisals ; a speech of his at London on Mch.
17, 1921, as reported in the Toronto Globe of the 18th, was vigor-
ous in its denunciation of existing conditions under British rule.
Bishop O'Leary of Charlottetown was on the National Commit-
tee of the Self-Determination League. With very few excep-
tions the Irish Catholic priests of Canada took no public part in
the controversy; not as much, perhaps, as the Irish Protestant
clergy in some Provinces. The editorial utterances of the
Catholic Register, Toronto, were vehement and denunciatory of
British policy but not more so than was the Orange Sentinel of
Toronto as to Roman Catholicism in general. The Canadian
Freeman of London dealt strongly with the subject, also, but
these and other journals joined in the note of peace which dom-
inated the world in this connection at the close of 1921.
THE GOVERNMENT OF CANADA
IN 1921
The new Government of Mr. Arthur Meighen
The Meighen entered upon this year with manifold difficulties
Government; and with keen opposition from forces which ap-
Policy and peared to be growing stronger as time passed on.
Administra- The real economic aftermath of the War was in
:ion m 1921. process of development ; all the discontents and un-
rest of that painful period were coming to a head
without the stimulus of patriotic struggle in a great emergency ;
very real problems in Railway deficits, lowering prices and de-
flation, agricultural losses and unemployment, were affecting
the people ; the Parliamentary majority was shifting and Gov-
ernment policy in some respects undefined while all roads seem-
ed to be leading toward the final arbitrament of an Election.
The Group system in politics was a fact with Quebec, for the
moment, acting as an isolated though not aggressive section;
the United Farmers of the West, under Mr. Crerar, were proving
an important fiscal group; the industrial East was struggling to
constitute another group and, everywhere, Liberals and Con-
servatives were trying to revive the pristine powers of their re-
spective sections.
Mr. Meighen was a man of ability and high character, a
most capable and convincing speaker, but lacking something of
the personal magnetism which, in Canadian politics, has proved
so potent an influence. He was the youngest of Canada's Prime
Ministers and had only been a dozen years in Parliament when
he came into power. He had a temperament of the old-time
Conservative type, but it was modified by conditions of Union-
ism and coalition and association with the moderate views of
Sir Robert Borden. The first incident of his administration was
completion of a new Trade Agreement with France. Following
the French denunciation of the former Treaty, after the Armis-
tice, Sir George Foster had gone to Paris and the result of this
visit and succeeding negotiations was a new arrangement which
provided (1) for the minimum tariff of Canada to be given in
exchange for the minimum French tariff on nearly the whole
list of the articles included in the Convention of 1907-09, with a
considerably extended list of articles not included in that Agree-
ment; and (2) for a fixed percentage tariff on certain other
articles, some of which were included in the preceding Conven-
tion at minimum rates and others which were new. It was to
remain in force until a more permanent Agreement could be
negotiated; it was subject to cancellation on four months' notice
by either of the parties thereto. The chief Canadian products
enjoying the minimum tariff rates, or a percentage of reduction,
were as follows : Prunes, apricots, chocolate, oils, hops, petrol-
[315]
316
THE CANADIAN ANNUAL REVIEW
eum, and other mineral illuminating oils ; heavy oils, certain
cobalt products, soaps (not perfumed), steam engines, pumps,
compressors, agricultural machines, detached bases of machin-
ery, carriages of steel or iron, stereo plates and plates and dies
for printing (except wall-paper), certain household wares and
articles of enamel and tin. The principal articles which no
longer benefitted by these rates were various iron and steel
manufactures, gloves, furniture, pianos and organs.
Other foreign matters of the year affecting the Meighen
Government — and apart from the greater issues elsewhere dealt
with — included the effort of the Russian Soviet Government
early in the year to negotiate trade arrangements with Canada
and its failure here as in the United States ; the French mission
under Marshal Fayolle which visited Ottawa on June 29 to
express the gratitude of France for the part played by Canada
in the War; the placing of the collection of past due Interest on
Greek and Roumanian bonds, held by Canada, in the hands of
the British Government early in June and the unsuccessful
efforts made by London to obtain satisfaction; the complica-
tions which surrounded an effort to float a Chinese one-year
Government bond issue of 3,000,000 gold dollars (secured on
the salt surpluses), in Canada, as a private matter, with 20 per
cent, per annum apparently ensured ; the announcement, through
a Royal proclamation, that Aug. 31, 1921, was to be treated as
the official and technical date of termination of the World- War
— following the final Treaties of Peace with Turkey and Hun-
gary; the appointment of an Anglo-German Mixed Arbitral
Tribunal in April composed of Prof. Eugene Borel of Geneva,
R.E.L. Vaughan-Williams, K.C., of London, and Adolph N. Zacha-
rias of Berlin for the purpose, chiefly, of deciding compensa-
tion to be borne by Germany in respect of damage or injury in-
flicted on the property, rights or interests of British Nationals
in German territory as they existed on Aug. 1, 1914; the visit
to Ottawa and formal welcome (Oct. 31) of the French Trade
Mission headed by Count d'Arnaud, which was to supervise the
exhibition of French products in a train touring the Dominion.
Other incidents of this nature included the appeal to the
Government (Feb. 5) by an influential Deputation for national
assistance to China in respect to the existing famine conditions,
with a suggested grant from the year's Chinese poll-tax returns
— to which the Premier's response was not favourable ; the state-
ment on Feb. 17 that Canada's claim for reparations against
Germany, with the exception of losses involved in the sinking
of ships which were included in the British total, had been for-
warded to the Reparations Commission by the Canadian Gov-
ernment. With the marine losses added, Canada's claim totalled
about $1,000,000,000. This enormous sum, however, was not re-
garded as a practical figure, as it was but one of the items in
"moral" damages due from Germany, rather than an actual
THE MEIGHEN GOVERNMENT; POLICY AND ADMINISTRATION 317
amount recoverable under the Peace Conference settlement.
Its largest element was the amount paid out, or to be paid out,
by the Canada Pensions Board which, as capitalized, was assess-
ed at slightly over $500,000,000. For separation allowance an-
other $100,000,000 was added.
During the year various subjects were brought before the
Government by Deputations. A rather important one was that
of Jan. 13 when a number of Northern Ontario representatives
accompanied by the Ontario Premier (Mr. Drury), Hon. Howard
Ferguson, ex-Minister of Lands, and the present Minister (Mr.
Bowman), Senator George Gordon and others, urged the Cabi-
net to do something in the improvement of the French River
waterway from Georgian Bay to Lake Nipissing — considered
by many as a rival project to that of the deepening of the St.
Lawrence. Mr. Drury declared that, in the long run, the French
River waterway would justify itself as a revenue-producer and
pointed out that completion of the work would make North
Bay a Lake port as well as an important railway point ; it would
stimulate commerce in the North country: "I have no doubt
that an arrangement could be made between the Dominion Gov-
ernment and the Hydro-Electric Power Commission, similar to
that of the Trent Valley Canal from which the Dominion gets
some revenue for its investment." Mr. Meighen pointed out
that, with regard to the Welland and Trent Canals, there was
litigation in which the Province of Ontario claimed ownership
of the water powers. The same claim might be made with re-
gard to the French River, and, if it succeeded, would eliminate
the revenue. The Premier also stated that the capital cost of the
improvements asked would run from 27 to 30 millions and
from $1,500,000 to $1,750,000 a year in interest. He could only
promise consideration.
On Feb. 3rd, at a banquet in Montreal, Mr. Premier Meighen
gave his preliminary announcement of Government policy to
700 citizens and his analysis of the issues to be dealt with was
clear and concise : "This country has undoubtedly big problems
ahead. It has its burden of finance. It has social inequalities
and evils to ameliorate ; it has some class antagonism to dis-
sipate ; it has, unfortunately, some racial misunderstandings to
dissolve ; it has the commercial handicap incident to a young
nation to overcome ; it has vast resources to develop, and at the
same time the just interests of the whole people in those re-
sources to preserve ; it has, also, immense railway difficulties to
surmount. Besides these purely domestic affairs, there is the
ever-present and, indeed, increasing responsibility of the rela-
tionship of our country with the Empire and the rest of the
world, of its growth within the Empire, and of our voice in the
common concerns of the British Commonwealth compatible with
that growth." He stood vigorously, and rather satirically, by the
policy of Protection : "Here is where I stand. I want the goods
we make in this country to be made here still — and more be-
318 THE CANADIAN ANNUAL REVIEW
sides — even though they are the necessaries of life; I want the
factories that are running in this country to keep on running —
even though they are producing foodstuffs ; I want the factories
that are closed for a time under the stress of to-day to be able
to open up as soon as any competitor — even though they are
making implements ; I want the workman and mechanic who is
living here to keep on living here and raising his children here
— even though he is making boots and shoes." He claimed to
stand for a policy of progress and against reaction, to favour
regard and reconciliation as between Quebec and the rest of
Canada. Sir L. O. Taillon presided, and Hon. Hugh Guthrie
also spoke.
On Apr. 2nd, at Montreal, Mr. Meighen addressed a large
gathering of women with Mrs. Henry Joseph in the chair. An
argument made for the maintainance of the Tariff was that
conditions were better in Canada than in the United States : "In
the metal trades during the month of January, in Canada, 909
per cent, of all those seeking work were employed while in the
United States there was but 69 5. In the textile trade Canada
employed 82 3 per cent., the States only 64 6. In the automobile
industries, one of those which suffered most, the nation to the
south was using but 30 8 per cent, of those ordinarily employed,
while Canada was using 61 9. In the building trades Canada
employed 72 9 per cent, and the United States but 47-6 Only in
boots and shoes was the advantage with the United States." At
Ottawa, on Apr. 8, Mr. Meighen spoke to a Rotary Club Conven-
tion; in Toronto on Apr. 16 he told a Conservative meeting
that in railway matters the Government intended to be stead-
fast in its policy of handling the system to the best advantage,
and its members believed that years and experience would teach
them where improvements could be made ; speaking to a
women's gathering on the same day, he attacked his Liberal and
Agrarian opponents as a "bifurcated campaign, under two lead-
ers and two flags, but really under one leader in one part of the
country and another leader in another part ;" he also unveiled a
Queen's Own Memorial to Major-Gen. M. S. Mercer.
The Premier's speech on the Budget (May 13) was an able
presentation of Government policy and critique of the Opposi-
tion platforms. He emphasized the claim that Mr. Crerar and
the Progressives had never formally presented their policy to
Parliament or placed the Agrarian platform upon the pages of
Hansard. He analyzed and criticized the Liberal platform and
described the policy of the Government as one of "moderate
protection". At Fredericton, on May 23, Mr. Meighen spoke
to 3,000 people in defence of his Government and its policy and
in support of R. B. Hanson, K.C., who was contesting the York-
Sunbury bye-election. He dealt largely with the attitude of the
Progressives or Farmers' party and vigorously denied that the
Government was the friend of the "big interests" — citing the
heavy Income taxes it had imposed upon the wealthy. He
THE MEIGHEN GOVERNMENT; POLICY AND ADMINISTRATION 319
claimed that Free trade would result in the ruin of Canadian
industries and would leave Canada at the mercy of the great
industries of the United States ; recalled the experience of the
Dominion in wheat and potato deals with the Americans ; de-
clared that Canada had less unemployment than any other na-
tion in the world, while her Defence bills were the smallest
known; admitted there was a large number of lawyers in the
Commons, but thought that men who were trained in the law
were well qualified to have a part in its making.
In the House on June 2nd the Premier dealt with the Re-
turned Soldier problem. He spoke of the various schemes sug-
gested and of what had been done and, especially, of the pro-
posal that the Government should set $50,000,000 aside for
Housing. Mr. Meighen did not think this plan was economic-
ally wise or that it would bring results commensurate with the
costs. Were the Government to grant loans for building pur-
poses the level of prices for materials entering into building
would be maintained, and building by private interests prevent-
ed rather than encouraged. Another result was that the Gov-
ernment would have left upon its hands houses which were
constructed at high prices, and for which those who had built
them would be unable to pay. Such a policy would not be a
cure ; it would be merely a palliative and, in the end, the evil
would be greater. The Government, however, recognized the
necessity of some assistance to Housing, and a vote of $12,000,-
000 would be found in the Supplementary Estimates to assist
Provincial action. The original provision under this head was
$25,000,000, of which $15,000,000 had been expended, with $10,-
000,000 still available. The Government had decided to add 25
per cent, to the amount obtained by any Province under the
original vote. This would amount upon the whole project to
$6,250,000, or a total of $16,250,000. At the close of the Session
on June 4, after four months of difficult leadership, the mem-
bers of the National Liberal and Conservative Party met the
Prime Minister and presented him with a complete dinner set
of Crown Derby china and a large cabinet of solid silver table-
ware. J. E. Armstrong, Hon. W. A. Charlton, Hon. William
Smith, and Senator R. H. Pope, paid personal tributes, and Mr.
Meighen duly responded. The visit to England and the Imperial
Conference followed.
On his return from England in August, Mr. Meighen found
political conditions far from comfortable. Bye-elections had
not been all that he had hoped for ; the Opposition parties were
continually urging an Election and denouncing his Government
as without a Mandate from the people ; the Cabinet had to
be re-organized, as promised, and another effort made to obtain
French-Canadian representation. In the Rt. Hon. A. L. Sifton,
Secretary of State, who died on Jan. 21st, he had lost an able
colleague ; efforts had been made in Quebec and Hon. G. H.
Boivin, the popular Deputy Speaker, was believed to have been
320
THE CANADIAN ANNUAL REVIEW
invited to enter the Cabinet; Hon. P. J. Veniot, the Acadian
Minister of Public Works, in New Brunswick, alleged that he
had been approached in this connection; Mr. Meighen, in
the House (May 17) denied any direct action while correspond-
ence, published later, showed that a St. John Conservative
politician had been urging the appointment on the Government.
During September the re-organization of the Cabinet as a
preliminary to the General Elections was under way, and on the
21st the members were sworn in as follows:
Prime Minister and Minister of External Affairs Rt. Hon. Arthur Meighen, K.C., M.P.
Minister of Railways and Canals Hon. John Alexander Stewart, M.P.
Minister of Trade and Commerce Hon. Henry Herbert Stevens, M.P.
Minister of Justice Hon. Richard Bedford Bennett, K.C., M.P.
Postmaster-General Hon. Louis de Gonzague Belley, K.C.
Secrtary of State Hon. Rodolphe Monty, K.C.
Minister of Health, Immigration and Colonization.... Hon. John Wesley Edwards, M.D., M.P.
Minister of Soldiers' Re-Establishment Hon. Robert James Manion, M.C., M.P.
Minister of Customs and Excise..
Minister of Public Works
Minister of Finance
President of the Privy Council.
Minister of Agriculture
Minister of Labour
Minister of Marine and Fisheries and Naval Affairs Hon. Charles Colquhoun Ballantyne, M.P.
Minister of the Interior
Minister of Militia and Defence
Minister without Portfolio
Minister without Portfolio
Minister without Portfolio
Minister without Portfolio
Hon. John Babington Macau lay Baxter, K.C.
Hon. Fleming Blanchard McCurdy, M.P.
Hon. Sir Henry Lumley Drayton, K.C., M.P.
Hon. Louis Philippe Normand, M.D.
Hon. Simon Fraser Tolmie, v.s.
Senator Gideon Decker Robertson
Senator Sir James Alexander Lougheed
Hon. Hugh Guthrie, K.C., M.P.
Hon. Edmund Bristol, K.C., M.P.
Hon. James Robert Wilson, M.P.
Hon. Edgar Keith Spinney, M.P.
Hon. Sir Albert Edward Kemp, K.C.M.G., M.P.
A little later Guillaume Andre Fauteux, K.C., of Montreal,
was appointed Solicitor-General. Of these 22 Ministers,
Messrs. Stevens, Stewart, Belley, Edwards, Baxter, Monty,
Normand, Manion, Bennett, Bristol, Wilson and Fauteux (12 in
all) were new to the Government and the four French-Cana-
dians were without seats in Parliament. Mr. Baxter was a
former Conservative leader in New Brunswick; Mr. Belley had
previously been in the Commons, and four of his sons had
served in the War ; Mr. Bennett was known throughout Canada
as a speaker and lawyer; Mr. Bristol was a Toronto financier
and lawyer, and Dr. Edwards a fighting Conservative, who had
been in the House for 12 years ; Mr. Manion had served in
France with distinction; Mr. Stevens was a prominent repres-
entative of British Columbia and a keen critic of the Farmers'
organizations; Mr. Stewart was a well-known Ontario manu-
facturer, and Mr. Wilson a Western farmer and miller.
Following this event a two-weeks' speaking tour of Ontario
was announced for the Premier, to take place in October, while
Senator Robertson stated (Oct. 5) that the unemployment
policy of the Government was co-operation with the Provincial
Governments in helping to create and provide employment and,
where this could not be furnished, aid in providing food and
shelter for the men and their dependents until the emergency
was past — with disbursements only through responsible muni-
cipal authorities ; on Nov. 21 a new Coat of Arms for the Dom-
inion of Canada, including Heraldic references to England, Scot-
land, Ireland and France, as well as Canada, and bearing in Latin
the motto "From Sea to Sea," was approved by Royal proclam-
GOVERNMENT DEPARTMENTS; COMMISSIONS; APPOINTMENTS 321
ation in London; an official statement at Ottawa on Nov. 26
indicated the Government's intention to inter the body of an
"unknown Canadian Soldier" at the base of the main entrance
to the Parliament Buildings, but vigorous protests were made
on the ground that the ceremony, and the Unknown Soldier
buried in Westminster Abbey, were representative of Canada
as well as of Britain and the project was ultimately abandoned;
on Nov. 25 an Order-in-Council of the Meighen Cabinet granted
$3,000,000 to the Dominion Iron and Steel Co. on account of its
claim against the Government. The Government's policy in
Imperial and Foreign affairs, as to Railways, Militia and Re-
construction, Finance, and the Navy is dealt with elsewhere
in separate sections; so with its platform in the General
Elections.
An election year is not usually one of creative
Government activity in Government Departments; when times
CommU^fon*' arc har(* anc* depression exists and, as in 1921, re-
*n™Appoin*- construction and economy are the watchwords,
menu during this statement applies with multiplied force. There
the Year. was, however, effort along necessary lines and it
was varied in character. On Feb. 3rd Hon. F. B.
McCurdy announced a 40 per cent, reduction of the Staff in the
Engineering branch of the Department of Public Works in the
interests of national economy. For the fiscal year 1921, J. B.
Hunter, Deputy-Minister, reported an expenditure of $20,970,-
674 of which $7,541,667 went to Harbour and river- works and
$8,443,892 to Public buildings; the revenue was $725,129. The
National Gallery reported to this Minister a continued accretion
of valuable paintings and the purchase during this period of 18
selected paintings with 115 prints, etchings, etc.
On Feb 11 the Department of the Interior made public
new regulations governing the disposal of oil and natural gas in
the Northwest Territories. These were to supercede all prev-
ious regulations and were retroactive in effect. They provided
that an applicant could be granted a prospecting permit for 4
square miles instead of 3 square miles as formerly ; if oil was
discovered the lessee would be allowed to take out a 21-year
lease for an area of one square mile, or an area not greater than
one-quarter of his prospecting permit — the remaining three-
quarters would be a Government reservation; a prospector
could not take out more than 5 permits with an aggregate area
not exceeding 2,560 acres. The new rules were especially
framed to protect the public from wild-catting, fraud and mis-
representation, and leases were to be cancelled or refused in
the event of malpractice being proven.
This Department, which was under Mr. Meighen as Min-
ister for most of the fiscal year ending Mch. 31, 1921, had sur-
veyed to date 200,280,209 acres of land in the 3 Western Prov-
inces with 25,649,800 acres available for entry on Jan. 1st, 1921 ;
322 THE CANADIAN ANNUAL REVIEW
during the year there were 2,892 soldier land-grants totalling
462,720 acres with 458,925 acres additional handed to the Soldier
Settlement Board ; Irrigation surveys in Southern Saskatchewan
and Alberta were practically completed, a Drainage division of
the Reclamation Branch was organized and in active operation,
while a Dominion Hydrometric Survey was organized under the
Water Power Branch; prospecting and drilling in the Yukon
were encouraged as well as oil operations in the Mackenzie
River and other Northern regions ; an organization was per-
fected by W. W. Cory, Deputy-Minister, for the supplying of
information on Natural resources and proved of great assistance
to those interested in development; a record was made of un-
occupied privately-owned lands in every Province to assist in
bringing these under cultivation, and the publicity given to the
National Parks and improvement of the roads resulted in a large
increase in the number of visitors who, during the year, num-
bered 150,000.
Excellent progress was made in the work of preserving
Historic sites and a Dominion-wide historical survey was under
way to decide which of these were of national importance with
46 sites selected ; new features were introduced for the protec-
tion of forests with more efficient fire-fighting service and the
introduction of Aeroplane patrols — provided in co-operation
with the Air Board ; the Forest Products Laboratories at Mont-
real supplied increasingly useful information, in the utilization
of wood and wood products, to manufacturers and builders and
the total revenue of the Department, from all sources during the
year, was $10,189,596, or an increase of $286,875 over 1919-20.
Land Sales by Railway Companies, having Government land
grants, and the Hudson's Bay Co., totalled 553,630 acres valued
at $10,860,756 during the year, and $224,478,175 since 1883. The
Department of Indian Affairs, also under this Minister, reported
in 1921 105,953 Indians and 3,296 Esquimaux in Canada. The
Indians had 221,827 acres under crop and a farm production
vauled at $3,577,119; the value of their real and personal prop-
erty (chiefly land in Reserves) was $68,502,140 or $682.06 per
capita ; their total earnings in the year were $10,670,549 or
$105.95 per capita.
The Postmaster-General (Senator P. E. Blondin) increased
the Postal rates considerably. On and after Aug 1st, 1921, the
fee for the special delivery of letters in Canadian cities was
raised by 10 cents on each letter, in addition to the ordinary
postage charge of 10 cents. On Sept. 11, for operation Oct. 1st,
Canadian postal rates were increased from 33^ to 100 per cent.
The rate of postage on letters from Canada to other places in
the Empire was to be three cents per ounce, or fraction thereof,
instead of two cents — both exclusive of war tax. The new rate
upon a letter weighing one ounce was three cents plus one cent
war tax. The rate on letters outside the British Empire,
United States and Mexico was increased from five to ten cents
GOVERNMENT DEPARTMENTS; COMMISSIONS; APPOINTMENTS 323
an ounce and from three to five for each additional ounce or
fraction of it. To the United States and Mexico, the Canadian
domestic rate was to apply.
Postcard rates were only increased outside the Empire,
United States and Mexico, the new rate being six cents instead
of two cents. The rates for printed matter, commercial papers,
samples and acknowledgements of receipt were double the old
rates. For the fiscal year 1921 the Report of this Department
showed 12,252 Post Offices in operation ; a Pacific cable traffic
of 443,600 paying words transmitted; a net revenue (including
war-tax) of $26,331,118 and an expenditure of $24,661,262. Ex-
cluding the war-tax of $7,872,962 there was a considerable de-
ficit. The Money Orders issued or paid were 21,177,351 and the
amount involved $336,515,517; the Post Office Savings Bank
balance on Mch. 31, 1921, was $39,710,367; the postage stamps
issued during the year were $28,563,234 in value ; the dead let-
ters, circulars, postal cards, etc., of the year returned to the Dead
Letter Branch numbered 3,841,810; the number of boxes in Rural
mail delivery was 5,709.
The Trade and Commerce Department handled and report-
ed the statistics of a trade totalling $2,429,322,583 during this
fiscal year ; a new Foreign Tariffs division was operated for the
study of Customs tariffs abroad; the Canadian Bureau of In-
formation in New York was transferred from the Department
of External Affairs to this Minister; the Dominion Bureau
of Statistics in charge of R. H. Coats, B.A., F.s.s., conducted the
6th decennial Census of Canada with 240 Commissioners and
12,000 enumerators ; the Weights and Measures Service and the
Board of Grain Commissioners were under this Department,
and the latter Board reported 42,077,016 bushels of wheat ex-
ported from Canada to the United States between Sept. 1st, 1920,
and Mch. 31, 1921 ; the Commissioner of Patents stated applica-
tions during the fiscal year as totalling 2,248 with 1,625 granted
and 1,778 copyrights issued with 2,640 Trade Marks, 374 Indust-
rial designs and 63 Timber marks. L. D. Wilgress, Trade Com-
missioner, submitted, and the Department published, an import-
ant Report upon the trade of new countries in South-east
Europe — Roumania, Hungary, Czecho-Slovakia, Austria, Turkey
and Jugo-Slavia.
The Publicity Bureau of this Department had a moving-
picture organization which was very complete and effective
under direction of R. S. Peck. During 1921 about 100,000 feet
of film were turned out and distributed throughout Europe, the
United States and South America, as well as the Orient. Up to
Apr. 1st of this year the Bureau produced 89 films, 70 of which
were devoted to the illustration of Canada's beauty spots, na-
tural resources, agricultural and industrial life, with outstanding
historical events in a "Seeing Canada" Series. The remainder
of the films were included in the "How it is Done in Canada"
Series and dealt mainly with essentially Canadian industries. In
324 THE CANADIAN ANNUAL REVIEW
October an arrangement was made with the Selznick Corpora-
tion of New York and Australia for the distribution of these
pictures in Australia and New Zealand. Toward the close of the
year (Oct. 4) Hon. H. H. Stevens, the new Minister, announced
his plans as including negotiations for a Preferential tariff ar-
rangement with Australia, and the extension of shipping facil-
ities between Canada and Mexico by means of the Government
Merchant Marine. A little later a Branch of the Trade and
Commerce Department was established in Vancouver to in-
vestigate and assist in the development of foreign trade on the
Pacific.
In November a number of new rulings were issued by the
Department of Customs and Excise under the Marking Act.
The most important was one which stated that: "Goods bona
fide ordered prior to the first of October, 1921, shall not be sub-
ject to the additional duty of 10 per cent, ad valorem to be levied
on the value for duty purposes, provided that such goods are
imported into Canada prior to the 1st of July, 1922. But such
goods shall not be released from Customs possession until they
have been marked, stamped, branded or labelled with an indica-
tion of the country of origin." The Railway Department is
largely dealt with elsewhere, but it may be mentioned that dur-
ing the year it lost, by retirement, the services of J. Lambert
Payne, who, for 35 years, had been associated with its statistical
and other work.
The Department of Agriculture did its usual measure of
important work during the year. This was described by an
official publication as including research, investigation, illustra-
tion, assistance, prevention, propaganda, and administration.
These, in practice, were subdivided into Plant breeding, Chem-
istry investigation, control of Diseases in Animals and plants,
losses from injurious Insects, improved methods of Field hus-
bandry, Live-stock and dairy development, stimulation of flax
and tobacco production, the Illustration stations and Exhibits
of the Experimental Farm branch, cold storage developments.
There was, also, the administration of various Acts of Parlia-
ment, such as the Animal Contagious Diseases Act, Meat and
Canned Foods Act, Live Stock and Live Stock Products Act,
Dairy Industry Act, Cold Storage Warehouse Act, Destructive
Insect and Pest Act, Seed Control Act, Agricultural Instruction
Act and Inspection and Sale Act. The Agricultural Gazette was
published by this Department and kept its work well before the
public ; other publications were numerous and included excellent
Bulletins and pamphlets from the Central Experimental Farm at
Ottawa.. The Minister's Report (Mch. 31, 1921) dealt with 1920
conditions and crops valued at $1,455,244,050 and with Live-
stock totalling 20,115,193 in number. It included detailed re-
ports from Dominion Experimental Farms and Stations ; Dairy
and Cold Storage Branch; Health of Animals and Live Stock
Branches ; Seed and Entomological Branches ; Fruit and Pub-
GOVERNMENT DEPARTMENTS; COMMISSIONS; APPOINTMENTS 325
lications Branches and the International Institute. Under the
Agricultural Instruction Act $1,100,000 was allotted to the
Provinces in 1920-21 and divided as follows :
Ontario
Quebec
Manitoba
Saskatchewan
Alberta
$336,303.26 British Columbia $69,199.06
271,113.76 Nova Scotia 81,716.69
77,113.11 New Brunswick 64,110.80
81,728.48 Prince Edward Island 31,749.22
66,965.62 Veterinary Colleges 22,000.00
It may be added that the duty on foodstuffs collected in the
year of Mch. 31, 1921, was $20,723,408 and on Agricultural im-
plements $1,917,370; the total on all articles imported was
$179,667,683. During the year the Minister of Agriculture (Hon.
Dr. Tolmie) arranged with the Banks for certain special con-
sideration to Live-stock owners in the current crisis. He de-
fined this at Ottawa on Aug. 30: '"Any cattle raiser who asks
for a loan, and who has security in cattle to offer, will be given
advances to procure fodder. The Banks will loan up to 75 per
cent, of what the cattle are worth from the Atlantic to the
Pacific. Special consideration will be given to the periods of
the loans and to renewals, and the Banks will in no case force
liquidation until the cattle markets have come to more normal
conditions." Early in July, also, the Minister secured a reduc-
tion of $10 per head in ocean freight rates on cattle and provision
for additional ocean freight space.
On Nov. 2-3, under the auspices of the Department, an im-
portant Conference was held to discuss the best means by which
to stabilize and render profitable the hog industry. It was
known that there was an unlimited and stable market for Cana-
dian bacon of the Wiltshire type in Great Britain and at the
same time that hog production in Canada, particularly in the
West, had fallen off enormously in the past two years. Hence the
Conference, at which the Departments of Agriculture for the
Provinces of P. E. Island, New Brunswick, Quebec, Ontario,
Manitoba, Saskatchewan and Alberta were represented, while
the Swine Breeders' Associations of all these Provinces, and of
the Dominion, sent their Delegates as well as the Live-stock
unions, the various Farmers' Co-operative organizations and
branches of the Packing interests. One of the chief results ar-
rived at was an agreement between all concerned that compul-
sory grading of hogs at stock-yards, abattoirs, and other points
was essential to the successful export trade in hogs. A Reso-
lution was passed asking the Federal Department of Agriculture
to establish a standard of grades for hogs under the Live Stock
and Live Stock Products Act, and to appoint official graders or
referees to be available at stock yards, abattoirs and other
points ; 8 grades in all were decided upon. Another matter was
the agreement of Packers to the principle that a minimum
premium of 10 per cent, should be paid for hogs suitable for the
production of select bacon.
The Department of Mines, under the Minister of the In-
terior, and the direction of Charles Camsell, Deputy-Minister of
326 THE CANADIAN ANNUAL REVIEW
Mines, published a Report of Production in 1920, a Study of
Scientific Investigations made during that year, a Report on
Gas Producer Trials with Alberta coals and an Analysis of the
Preparation, Transportation and Combustion of Powdered Coal.
The Hon. J. A. Calder as Minister of Health, reported on Quar-
antine and Immigration medical services; Food and Drug Lab-
oratories ; Opium and Narcotic Drugs ; Proprietary or Patent
Medicines ; Marine Hospitals' Service and Venereal Disease Con-
trol. He also dealt with Child Welfare conditions, Housing and
the Public Works Health Act. The Housing statement showed
that out of $25,000,000 allotted in 1918 by Order-in-Council for
Housing loans to the Provinces, $14,545,000 had been appro-
priated; that the Provinces had advanced to the municipalities
$12,547,435 while the latter had asked for $34,522,897. To the
Minister of Justice the Penitentiary Report (Mch. 31, 1921)
showed 2,150 in custody with an average daily population of
2,058; the net Expenditure of the year was $1,457,981 and during
the year 375 prisoners were released on parole from the Peni-
tentiaries and 508 from the prisons and reformatories of the
Provinces, making a total of 883. Since 1899 out of 13,512 re-
leased, 12,152 had completed their terms under licensed parole.
The Department of State administered the Bankruptcy Act
and the Canada Temperance Act; its Companies Branch, under
Thomas Mulvey, K.C., as Under Secretary of State, reported 852
new Companies incorporated with a capital of $752,062,683 and
supplementary letters patent issued to 229 existing Companies
of which 135 increased their capital stock by $79,803,000 and 17
decresaed theirs by $7,698,300; the Naturalization Branch show-
ed 10,507 persons naturalized during the year. Mr. Fielding, the
new Minister of Finance, received through his predecessor,
Sir H. Drayton, a certified Report from Edwards, Morgan & Co.,
Chartered Accountants, that all sums accruing from the War
Loan flotations since 1914 — over $2,375,000,000— had been fully
accounted for and that "the accounts respecting the redemption,
transfer and exchange of bonds which form part of the above-
mentioned issues have been verified and found to be correct."
The Department of Public Printing and Stationery — P. M.
Draper, Director, and Edmund Ryder, Superintendent of Sta-
tionery— reported to the Minister of Labour as to the Govern-
ment's printing account which totalled $2,299,759 in work com-
pleted and chargeable to the Departments, with $1,362,018 of
Stationery chargeable in the same way ; the amount paid out for
Government advertising in newspapers during the fiscal year
was $183,656.
The action of Government Commissions and Boards includ-
ed during 1921 the final Report (Jan. 28) of the Canadian Wheat
Board of which James Stewart, Winnipeg, was Chairman, and
the proceedings and policy of which were so popular with West-
ern wheat growers in the final stage of its operation ; the Order
of the Board of Railway Commissioners (Feb. 14) rescinding the
GOVERNMENT DEPARTMENTS; COMMISSIONS; APPOINTMENTS 327
Order which prohibited the exportation of coal from Atlantic,
St. Lawrence and Gulf ports of Canada except to the United
States and Newfoundland ; the final statement that the Board of
Commerce cost the country $140,412 in expenses together with
the decision of the Judicial Committee of the Privy Council on
Nov. 11 that its creation was not constitutionally within the
powers of the Dominion Government and that it trenched on
Provincial rights under the B. N. A. Act ; the Interim Report of
Judge C. G. Snider of Wentworth, who, as a Royal Commis-
sioner, investigated the destruction, as junk, of 76,926 volumes
of Government publications which had been intended for free
distribution among the Libraries, etc., of the country and com-
prised debates of the Commons and Senate, sessional papers,
reports and statutes. The Commissioner was inclined to criti-
cize Fred Cook, Chairman of the Editorial Committee of the
Government service, and F. C. C. Lynch, another member,
though in doing so he appeared to take the evidence of two
employees as against that of Mr. Cook. The other members of
the Committee were F. C. T. O'Hara and R. Boudreau, who
were out of town at the time of the incident. Messrs. Cook
and Lynch wrote the Minister of Trade and Commerce on Mch.
16 claiming that no exact instructions had been given to destroy
these books, that the matter had been discussed at a conference
with the people who wanted the room in which the books were
stored but that even the discussion did not go beyond a printed
list covering about one-tenth of the 152 tons which were after-
wards destroyed.
There was, in June, a Report as to Vital Statistics in Canada
by the Dominion Bureau of Statistics, covering all the Provinces,
but Quebec — which latter published its own figures. Taken to-
gether the total of Births was 247,219, of Marriages 80,472 and
Deaths 119,827. Early in the year the Commission on Conserva-
tion was abolished with the view, in part, of saving expenses
and, in part, because of alleged interference with, or duplication
of the work in, other public Departments. As to this latter point
Sir James Lougheed, in the Senate on May 13, stated that the
Commission had extended its scope and activities until it threat-
ened to usurp the powers and functions of the Government it-
self : "It invaded the field of agriculture ; dipped into external
affairs by making representations at Washington; invaded the
Department of the Interior by meddling with the administration
of natural resources ; took up the question of water-powers ; ex-
tended its scope to the Department of Marine and Fisheries ;
dipped down under the earth and interfered with mines and
minerals and, finally, took a hand in the question of scientific
and industrial research." Its maintenance was strongly but un-
successfully urged in various quarters and the Canadian Muni-
cipal Journal for March stated that for 12 years 20 of Canada's
foremost scholars, scientists and business men had given their
services free — with the co-operation of representatives of the
328 THE CANADIAN ANNUAL REVIEW
Federal and Provincial Governments — for the purpose of con-
serving Canada's great natural resources and had splendidly
carried out their work. The Toronto Globe took a similar posi-
tion and Toronto Saturday Night of June 25 quoted a eulogy by
Senator W. C. Edwards and declared that in its 12 years of exist-
ence the Commission had done great service and had only cost
$1,295,000.
The Civil Service Commission and the salaries of the Civil
Service, itself, were much discussed during the year. There
was a good deal of strong feeling expressed by a portion of the
Service as to the 1920 classification and adjusted salaries; a
Board of Hearings composed of Clarence Jamieson, Chairman,
J. C. O'Connor, President Civil Service Federation, Major D. L.
McKeand, Board of Pension Commissioners, Wm. Kearns,
Deputy Auditor-General, and A. St. Laurent, Assistant Deputy
of Public Works, had been appointed to deal with these objec-
tions ; it was apparent from a return presented to Parliament
on Mch. 30 that since 1913 the army of Civil Servants had in-
creased from 30,988 to 46,605 and that, of this increase, 9,143
only were due to the needs of new Departments. In the House,
on Mch. 23, the Prime Minister announced a decrease of 25 per
cent., or over $3,000,000, in the bonuses to be paid to Civil ser-
vants and stated that, originally, this bonus had been given to
offset an abnormal increase in living costs. In the past year it
totalled $12,500,000 and brought up the cost of the Civil Service
to, approximately, $66,000,000. In view of increases in wages to
Civil servants caused by the re-classification ; in view of the
decrease in the cost of living and of the further need for
economy in the conduct of public business ; the Government had
decided on this reduction.
The Executive of the Civil Service Federation protested
vigorously against the current Bill of Hon. E. K. Spinney which
amended the Civil Service Act and the object of which was
claimed by the Government to be a modification of the existing
Act and not inconsistent with its fundamental principle of taking
the Civil Service out of politics ; it was claimed to create condi-
tions more conducive to efficient administration and the prompt
selection of those who were to perform the public business. The
subject was debated in the Commons on May 2nd and Hon. A. K.
Maclean moved rejection of the Bill ; the motion was lost by 72
to 57, after a speech from Hon. Mackenzie King, denouncing
the measure as endangering the principle of a non-partisan Ser-
vice. It finally went to a Special Committe and was greatly
modified in terms while, on May 5, the Civil Service Federation
had issued a statement reviewing the proposed Act and declar-
ing that it would result in :
1. TJae substitution of political influence instead of merit in the
most important appointments to the public service.
2. The substitution of political influence instead of merit in pro-
motions.
GOVERNMENT DEPARTMENTS; COMMISSIONS; APPOINTMENTS 329
3. The repeal of the present preference to returned veterans in the
most important appointments.
4. The nullification of the work of classification and re-organization.
5. The introduction of political partisanship, political influence, and
inefficiency in the the Public Service of Canada.
Incidents of the ensuing controversy included a keen attack
(May 16) by Dr. C. A. Hodgetts, C.M.G., upon the Civil Service
Commission, following his transfer from the Conservation Com-
mission to the post of Director of Sanitary Statistics, in the De-
partment of Health. He declared that "the Civil Service Com-
mission, which has not on its whole personnel any professional
expert competent to pass intelligently on questions relating to
Public Health, classified the position which I have temporarily
held at a figure below that which I have been given." He
therefore offered his resignation. At a meeting in Toronto of
the Federation of Postal Employees (May 8) a strong protest
was made against the Bonus reduction and a Resolution passed
favouring the establishment of Civil Service Councils along the
lines of those established in England on the Whitley principle.
The Civil Service Association returned to the charge on July
18 with a published letter to Sir George Foster which stated
that the majority of the Inside Service group of employees were
classified as clerks, a position corresponding to the old class
3A, which had a maximum of $1,000 13 years ago, $1,300 in 1918
and only $1,260 in 1921 under the re-classification; the average
Civil Servant was said to have had no increase in 13 years —
apart from the Bonus. On Aug. 5 Judge Constantineau, in the
County Court at Ottawa, decided that Civil Servants were not
exempt from the municipal Income tax; Prof. L. W. Gill, Di-
rector of Technical Education, attached to the Department of
Labour, announced (Aug. 15) that he had resigned his post to
accept that of Head of the Department of Electrical Engineer-
ing in the University of British Columbia — the reason given
being insufficiency of salary ; early in November the Government
announced that the Griffenhagen experts who had been re-orga-
nizing the Post Office, Customs and Inland Revenue Depart-
ments, with an estimated saving of $3,350,000 in annual expenses
and a probable increase in efficiency, had retired from their work
on Oct. 21 — one which had aroused much dissatisfaction amongst
Departmental employees.
On Nov. 2nd the second annual Convention of the Profes-
sional Institute of the Civil Service of Canada concluded its
sessions and elected Dr. J. M. Swaine as President. Clarence
Jamieson of the Civil Service Commission described to the mem-
bers the classification policy of his Board with, as the underlying
principle, the establishment of a proper relationship between
the compensation of kindred classes. He stated that the Board
of Hearing had 582 appeals against the classification, and in 285
cases recommendation for an increase in the compensation of
the classes was made to the Commission. Increases had been
allowed on 43 per cent, of all the Ottawa appeals. Comparison
330
THE CANADIAN ANNUAL REVIEW
of the salaries three years before with those of the present time
showed that the great majority of employees in the Service had
benefitted materially from re-classification. Meantime, the An-
nual Report of the Commission had issued in June, for the year
ending Dec. 31, 1920, and showed that 29,084 returned soldiers
had been given appointments up to date, and of these 8,448 were
permanent. Following the law passed in 1920 providing for the
retirement of aged employees, an investigation indicated that
1,600 men and women in the Service were 65 years old, or older.
Of these 650 were reported as not rendering value for the com-
pensation given them and, up to the end of 1920, 98 of these
had been retired and 550 more were slated for removal.
Dominion Government Appointments of the Year.
Deputy of H. E. the Governor-General Hon. John Idington Ottawa
Lieut.-Governor of Saskatchewan Hon. Henry William Newlands Regina
Lieut.-Governor of Manitoba Sir James Albert Manning
Aikins, Knt Winnipeg
Lieut.-Governor of British Columbia Walter C. Nichol Vancouver
Lieut.-Governor of Ontario Lieut.-Col. Henry Cockshutt Brantford
Administrator of the Government of Ontario Hon. Sir William Mulock,
K.C.M.G Toronto
Administrator of the Government of British Columbia.. Hon. J. A. Macdonald Victoria
The King's Privy Council for Canada William Smith, M.P Columbus
The King's Privy Council for Canada William Andrew Charlton, M.p..Toronto
Deputy-Minister of Immigration and Colonization W. J. Black
Inspector of Federal Taxation for New Brunswick Norman P. McLeod
King's Printer for Canada Frederick A. Acland
Superintendent of Indian Education for Canada Russell T. Ferrier, B.A...
Member of the Board of Railway Commissioners Calvin Lawrence
Postmaster at Brantford J. C. Montgomery
Postmaster at Windsor Joseph P. Casgrain
Deputy-Minister of Marine Alex. Johnston
.Ottawa
..St. John
..Ottawa
..Brandon
..Ottawa
..Brantford
.Windsor
..Ottawa
1921 Appointments to the Senate of Canada.
Senator of Canada Archibald Blake McCoig, M.P
Senator of Canada John Anthony McDonald, M.P
Senator of Canada Brig.-Gen. William Antrobus Griesbach, C.B., C.M.O.
D.S.O., M.P
Senator of Canada Rt. Hon. Sir George Eulas Foster, G.C.M.G., M.P
Senator of Canada Hon. John Dowsley Reid, M.P
Senator of Canada Hon. Tames Alexander Calder, M.P
Senator of Canada Hon. Thomas Wilson Crothers, M.P
Senator of Canada Robert Francis Green, M.P
Senator of Canada Brig.-Gen. Archibald Hayes Macdonell, C.M.G., D.S.O...
Senator of Canada The Hon. Sir Albert Edward Kemp, K.C.M.G., M.P
Senator of Canada Lieut.-Col. John Stanfield, M.P
Chatham
.Shediac
..Edmonton
..Ottawa
..Ottawa
..Regina
..Ottawa
..Victoria
..Toronto
..Toronto
..Truro
Judicial Appointments of the Year.
Judge of the Court of King's
Bench Saskatchewan....Donald Maclean, K.C.,M.L.A Saskatoon
Chief Justice, Trial Division of
Supreme Court Alberta Hon. Horace Harvey Edmonton
Justice of Trial Division of
Supreme Court Alberta Hon. William Leigh Walsh Edmonton
Justice of Trial Division of
Supreme Court Alberta Hon. Maitland Stewart McCarthy Edmonton
Justice of Trial Division of
Supreme Court Alberta Hon. William Charles Simmons Edmonton
Justice of Trial Division of
Supreme Court Alberta Hon. William Carlos Ives Edmonton
Justice of Trial Division of Thomas M. Mitchell Tweedie,
Supreme Court Alberta K.C., M.P Calgary-
Judge of the District Court of
Macleod Alberta Angus M. MacDonald Lacombe
Judge of the County Court of
Queen's, Sunbury and York.. ..New BrunswickArthur R. Slipp, K.C Fredericton
Judge of the Court of Appeal... .Saskatchewan.... Alphonse Turgeon, K.C., M.L.A Regina
Puisne Judge of the Court of
King's Bench Quebec Louis Alphonse Joseph Bernier.... Quebec
THE LIBERAL PARTY IN 1 92 1 ; MACKENZIE KING AS LEADER 33 1
Puisne Judge of the Court of
King's Bench Quebec
Puisne Judge of the Superior
Court Quebec
Puisne Judge of the Superior
Court Quebec
Chief Justice of the Supreme
Court and President of Ap-
pellate Division Alberta
Justice of the Supreme Court
and Justice of Appeal Alberta
Judge of the Supreme Court
and Justice of Appeal Alberta
Judge of the Supreme Court
and Justice of Appeal Alberta ,
Judge of the Supreme Court
and Justice of Appeal Alberta
Judge of the Supreme Court Ontario
Junior Judge of the County of
York Ontario
Judge of the Court of King's
Bench Manitoba
Judge of the Court of Appeal.... Manitoba
Judge of the Court of King's
Bench Saskatchewan..
Judge of the Court of Appeal Saskatchewan-
Judge of the District Court of
Melfort Saskatchewan..
Judge of the Supreme Court Nova Scotia
Judge of the Lunenburg District
Court Nova Scotia
Vice-Chancellor, Court of Chan-
cery and Assistant Judge
Supreme Court P. E. Island
Adjutor Rivard, K.c Quebec
Hon. Albert Sevigny, K.C Quebec
Pierre d'Auteuil, K.C Quebec
Hon. David Lynch Scott Edmonton
.Hon. Charles Allen Stewart Edmonton
Hon. Nicholas Du Bois Dominic
. Beck Edmonton
.Hon. James Duncan Hyndman Edmonton
Albert Henry Clarke, K.C Calgary
Herbert MacDonald Mowat, M.p..Toronto
John Tytler, K.C Torontb
.Andrew Knox Dysart Winnipeg
.Hon. Thomas Llewellyn Metcalfe.. Winnipeg
.Philip Edward Mackenzie, K.C Regina
.Hon. James McKay Regina
.Henry Colin Pope Moose Jaw
.T. Sherman Rogers, K.C Halifax
J. Willis Margeson Halifax
Hon. Aubin Edmond Arsenault Charlottetown
The Liberal
Party in
1921: Hon.
Mackenzie
King as
Leader.
Throughout the year Mr. Mackenzie King was
hopeful, aggressive, active ; he fought the bye-
elections vigorously and, in Parliament and out,
urged dissolution, described the Government as
non-representative of the people and usurpers of
authority, and demanded a general election. The
issue of the year, as he saw it, was not the fiscal
one but the question of maintaining a Government in office
against the popular will. His Tariff policy, he declared at Peter-
borough on Jan. 23, was summed up in the words "consult the
people," and upon this point he was very explicit. During this
bye-election in West Peterborough Mr. King spoke several times
and, at Ennismore (Feb. 2nd), he continued his plea of 1920 for
inter-party unity : "The Liberals, Farmers and Labour are very
much the same in their aims. The three platforms all have cer-
tain things in common. All have reduction in the cost of living.
All ask the reduction of tariff on the necessaries of life. All
want the implements of production in the basic industries as
cheap as possible, and the duties taken off. They all want econ-
omy and reduction in the burdening taxes. They are the same
on the great question of Imperialism." At Brome, Quebec,
(July 1st) he declared that the people saw themselves deprived
of their rights to a representative Parliament and a responsible
Ministry : "They see the functions of government carried on by
a usurper who exercises his authority, not in virtue of any
power derived from the people, but solely as the outcome of
arbitrary enactments and political might."
Meanwhile, in Quebec City on July 8, Ernest Lapointe, the
Quebec Liberal leader, gave three points as bases for Liberal
party achievement : Freedom of individual action, confidence as
332
THE CANADIAN ANNUAL REVIEW
between employer and employee, and a policy of National unity.
As to the first, he said that every great thing accomplished in
the world had been obtained by private initiative — "The Govern-
ment had better leave the business men alone." He also urged
manufacturers to reach out into foreign markets and gave in-
stances where United States firms had sold Canadian-made
goods and made a profit out of them. With Mr. King at Bedford
on July 2nd was another Quebec leader — Hon. R. Lemieux —
who (according to the Montreal Star report) expressed dislike
of Railway Nationalization policies and urged private owner-
ship: "A railway administered by a Beatty, a Shaughnessy or
a Van Home, where there is private initiative, will produce a
surplus and bring prosperity wherever its rails are laid."
In the summer Mr. King opened an Ontario tour at Aurora
(July 27) and, addressing a Liberal mass-meeting there, with
Howard Cane of Newmarket in the chair, he laid stress on the
constitutional issue and the absence of any popular mandate for
Government policy at home or abroad — Imperial, national or in
legislation. He declared his intention to remain the North York
candidate in the Elections, when they came, and described the
Meighen Government policy as one of "reaction, not recon-
struction" : "The situation to-day is that the political, industrial
and, to a considerable extent, also, the social life of Canada lies
enthralled under the subtle and malignant influences of com-
bined autocratic and plutocratic control, which seeks only the
aggrandizement of a few individuals at the expense of the
State, and is regardless of the well-being of the people at large."
He was at Brampton on July 28 and criticized the enormous
Railway expenditures of the Government.
He pointed out that the amount voted this year by Parlia-
ment reached a total of $165,000,000, which was larger by $25,-
000,000 than the amount required for interest on the colossal
Public Debt ; larger by $35,000,000 than the amount required in
interest for the obligations arising out of the War; larger by
$43,00,000 than the total amount expended on all accounts in the
last year of the Liberal Administration ; practically double the
amount spent on ordinary current account to carry on the busi-
ness of all the Government Departments in 1911. At Tilsonburg
on July 29 he declared that a Protective tariff was bound to be
in favour of the special interests, whereas a Revenue tariff
would be a tariff for the people.
At Hamilton, on the 30th, he dealt at length with the Rail-
way problem as an outgrowth of the combination of political and
industrial interests which had been controlling Canadian affairs
for the past few years. There were, roughly, 20.000 miles of road
controlled and operated by the Government; and the greater por-
tion had been taken over since 1911. The transfer of this im-
mense industry from private to public ownership had taken place
without consultation of the people by the Government — though
the people had to foot the bills in connection with operation.
So with the Government Merchant Marine project. "The Rail-
THE MILITIA DEPARTMENT AND MILITARY CONDITIONS 333
way situation, as I see it to-day," continued Mr. King, "is not a
question of public ownership versus private ownership. It is a
question of public versus private interest, as regards manage-
ment. I hold that the transfer of the railways to Government
ownership was a move to ultimately re-transfer the system to a
small group of friends and associates of the Government now in
power."
The Toronto Globe at this juncture published several editor-
ials strongly urging the Liberal party to stand by the National
Railways as an institution and to make the best of a bad situa-
tion. On Aug. 3rd it declared that : "To go back to private
ownership would be a surrender and a confession of weakness
which we trust Liberals and Progressives will never make. The
deficits on the Government railways are due in the main, not to
public ownership, but to private ownership, which had failed in
spite of continued doles and aids from the public Treasury."
Meanwhile, also, Liberal speakers in Quebec were emphasizing
the Railway burdens which the country was assuming, and much
of the Financial press was doing the same.
In this period Mr. King made many more speeches than
those indicated ; he had shown skill and energy in attack and a
considerable quality of destructive criticism; he made the most
of an already difficult Government position. On Nov. 6, upon
the verge of the Elections, part of the will of the late Lady
Laurier was made public by Hon. L. P. Brodeur, one of the
Executors. Under its terms the home of the late Liberal Prime
Minister, at Ottawa, was given to Mr. King as Leader of the
Party, for an official residence and, with it, the historic gifts
received from time to time by the late Sir Wilfrid Laurier. In
this connection, also, progress was being made in respect to the
proposed Liberal monument to the late Leader. A Committee
of prominent Liberals of which the Hon. Sydney A. Fisher was
Chairman, had been appointed in October, 1919, to organize
and collect subscriptions for the erection of a monument at the
grave of the late statesman. The subscription list opened in
February, 1920, was confined to sums of not less than 5 cents
and not over $5.00 and was intended to be a popular subscrip-
tion. No general canvass was made but the subscriptions soon
totalled $35,000 and designs for the Memorial were invited.
Fifty-seven were received and out of these, eventually, that of
Messrs. Cote and Laliberte of Montreal was unanimously ac-
cepted. During 1921 the Monument was under construction.
The Hon. Hugh Guthrie, K.C., as Minister of
The Militia Militia and Defence in the Borden and Meighen
De?V?.??ent Cabinets, had not an altogether easy time. So far
Sldition"7 as the War was concerned, his path was fairly
of 1921. clear; after the War the old-time divisions of
thought as to the Militia revived; it became, from
1919 onward, increasingly difficult to get his Estimates through.
Meanwhile, the Militia had to be re-organized from top to
334 THE CANADIAN ANNUAL REVIEW
bottom, much was being done in a slow and gradual process,
the annual training-camps were maintained, the Cadet Corps
were kept up to a good standard, popular response in the prac-
tice of rifle-shooting was not lacking. During 1921 recruiting
for the Canadian Army Medical Corps was commenced and car-
ried on and an effort was made to re-organize the Canadian
Field Artillery.
The Minister's Report for the year of Mch. 31, 1921, stated
that the constitution of the Militia Council had been changed as
a result of the retirement of General Currie and did not now in-
clude the Inspector-General — Sir Henry E. Burstall, K.C.B.,
C.M.G. ; that the work of the Committee appointed to consider
the best means of absorbing the C. E. F. units in the Canadian
Militia had been most successful ; that the Defence Committee,
composed of the Director of the Naval Service, the Chief of the
General Staff, the Inspector-General of the Canadian Air Force,
and the Commissioner, R. C. Mounted Police, and originally
established to co-ordinate efforts, to obtain a common policy
and, especially, to ensure co-operation of Sea, Land and Air
Forces in the event of war or other emergency, had held fre-
quent meetings with valuable results.
During 1920 the training of Permanent Militia units had
been carried out at Petawawa, Sarcee, Halifax, Rodd Hill, B.C.,
and Valcartier but the Non-Permanent Militia had not been suf-
ficiently advanced in its re-organization to go beyond local
Headquarters training; on Mch. 31, 1921, there were in exist-
ence 87 military Rifle associations with a membership of 15,295
and 225 civilian Rifle associations with a membership of 11,158.
In view of the limited funds available and the scarcity of quali-
fied instructors, Permanent Schools of Instruction were not re-
opened on a pre-war basis during 1920; to meet the growing
demand, however, Permanent Schools had conducted courses
early in 1921 at Winnipeg, Calgary and Halifax — with special
schools established at Wingham, Ont., for Cavalry, and at St.
John, N.B., for Infantry; in addition to this work courses were
conducted at 45 Provisional Schools for the various arms. As
to Cadet Services the Minister reported that the amount ap-
propriated by Parliament was increased from $100,000 to $390,-
000, or only $2,500 less than the amount authorized in 1914-15
when 50,064 Cadets were trained. The result was that during
the school-year ending June, 1920, 74,991 Cadets were trained,
as against 60,788 in the previous school-year. The number en-
rolled and training on Mch. 31, 1921, had further increased to
81,493, organized into 713 Cadet corps comprising 1,627 com-
panies. The figures by Provinces were as follows :
Year ending Year ending
Province June 30, Mch. 31, June 30, Mch. 31
1920 1921 1920 1921
Alberta 5,723 5,179 Nova Scotia and P.E. Island.. 2,981 3,645
British Columbia 4,442 4,350 Ontario 24,183 26,217
Manitoba 6,880 9,255 Quebec 24,634 26,637
New Brunswick 1,553 1,210 Saskatchewan 4,595 5,000
Total , 74,991 81,493
THE MILITIA DEPARTMENT AND MILITARY CONDITIONS 335
On Mch. 31, 1921, the authorized establishment of the re-
organized Permanent Force was 6,951, the actual strength
4,125. By this time Regiments of Cavalry and Mounted Rifles
had been organized on a three-squadron basis, the Canadian
Engineers had re-organized to a considerable extent, the Corps
of Guides had been re-formed with Cyclist 'companies, many
Infantry battalions organized on a 4-company basis with an
establishment of 31 officers and 540 other ranks, the C.A.M.C.,
the Canadian Army Veterinary Corps and the Canadian Postal
Corps had been re-organized, and the Ordnance Corps increased
with a view to one Detachment for each Military District. Dur-
ing this fiscal year 4,689 appointments of officers were made in
the Active Militia and the following Units re-organized with an
establishment of gazetted officers :
Cavalry 22
Artillery 47
Artillery 5
Engineers 6
Canadian Corps of Signalers 8
2
Corps of Guides 1
Canadian Officers Training Corps... 8
Infantry 84
Canadian Army Service Corps 13
Canadian Army Medical Corps 32
Canadian Postal Corps 11
Regiments.
Batteries with Brigade Staffs.
Companies Garrison Artillery.
Field Companies.
Signal Companies.
Signal Troops.
Cyclist Company.
Contingents.
Regiments.
Companies.
Medical Units.
Detachments.
On Apr. 1st, 1920, there were still in operation 11 Military Hosp-
itals, with a bed capacity of 2,494, employing a personnel of 122
officers, 178 nursing sisters and 767 other ranks. By the end of
March, 1921, all hospitals had been closed, with the exception of
the Manitoba Military Hospital, Winnipeg, and one transferred
to the Department of Soldiers' Civil Re-Establishment. Follow-
ing this, Garrison Station Hospitals were opened for the treat-
ment of Permanent Force troops in Halifax, Quebec, St. John's,
Que., and Victoria ; at Montreal, Kingston, Toronto, London and
Calgary, however, owing to the reduced establishment of the
Medical Corps, it was found impossible to do more than establish
Detention Hospitals where patients were kept under observation
for a short period. During the year a mass of military stores
were received from Great Britain as a result of demobilization
and they included 76 field guns, 2,029 machine guns, 49,000 rifles
with bayonets, 1,250 cavalry swords and 5,000 revolvers with
12,000 rounds of ammunition. The Militia expenditure of 1920-
21 was $10,058,625 compared with $4,634,516 in 1919-20 and
$10,998,162 in 1913-14. The War expenditure of the year was
$16,229,764 as against $323,360,987 in the preceding fiscal year.
Maj.-Gen. Sir A. C. Macdonell, K.C.M.G., D.S.O., Commandant of
the Royal Military College, Kingston, reported 102 candidates
for entrance with 61 qualified; progress, he stated, was being
made with the Sir Arthur Currie Assembly Hall of the College ;
subscriptions were coming in for the Memorial Arch in honour
336 THE CANADIAN ANNUAL REVIEW
of ex-Cadets or graduates falling in Imperial wars. General
Currie became Chairman of the Board of Visitors and the grad-
uates in 1921 numbered 56.
The Report to this Minister of Colonel A. Bowen Perry,
C.M.G., Commandant of the Royal Canadian Mounted Police, des-
cribed the strength of that Force as 70 officers, 1,610 non-com-
missioned officers and constables and 795 horses — a slight in-
crease on Sept. 30, 1921, over the previous year. The bulk of
the Force was in the West with 162 in Manitoba, 329 in Saskat-
chewan, 266 in Alberta, 265 in British Columbia and 81 in the
Yukon and North- West Territories ; Ontario had 440 and Que-
bec 26. Colonel Bowen stated that "along the coast of the Arc-
tic Ocean and in Victoria Land a disturbingly large number of
crimes of violence have had to be dealt with, and the prevalence
of infanticide raises a problem with which humanity demands
that the Government of Canada should deal." He reported the
total of all investigations undertaken by the Force during the
fiscal year of Sept. 30, 1921, as 12,595 and gave a list of 40 im-
portant Federal statutes which the Police had to enforce be-
sides Provincial regulations and the Criminal Code ; assistance
was given to the Provinces in a sympathetic strike at Thorold,
Ont., a Street Railway strike at St. John, N.B., a motor-bandit
situation in Nova Scotia, and certain expected disorders in Van-
couver. The Estimates for the Mounted Police as submitted
to Parliament on Mch, 8 totalled $3,526,570 compared with $4,-
674,066 in 1919-20.
The tendency in Parliament at this time was to restrict
Militia or military expenditures; peace was the dominant note
of popular thought. Military leaders, however, were not dis-
posed to let this natural feeling run to extremes and Lieut.-
General Sir H. E. Burstall, as Inspector-General, made a tour
of the country speaking at many Canadian Clubs and every-
where appealing for national support to the Militia and des-
cribing the need of a well-drilled and adequate Defence force. At
St. John on Feb. 9 he claimed that the young man who joined
the Militia was improved mentally and physically and, as the
military units increased in efficiency so the homes and country
at large increased in efficiency. Discipline and efficiency made
the trained man a good citizen — mentally, morally and physically
— and also prepared the country for war in case of need. He
believed there were real dangers within the country and indica-
ted Bolshevism and recent incidents at Winnipeg and Toronto.
The General spoke in Winnipeg on Mch. 10, and, at Regina
on the 14th, declared that "preparedness is the only
real defence", and described the Militia as a peace-time
national organization. At Victoria (Mch. 29) he declared that
apathy was passing away and a general feeling was becoming
apparent that the country needed a force as strong as in the
days prior to the War but not quite of the same sort. Many
other places were visited and the Toronto Highlanders were told
on Nov. 17 that a well-trained Militia in Canada was essential.
I
THE MILITIA DEPARTMENT AND MILITARY CONDITIONS 337
Others took the same line. General Macdonell at King-
ston (Feb. 24) denounced those who had, before the War,
claimed that a man could not be a Christian and a soldier ; Maj.-
Gen. J. H. McBrien, C.B., C.M.G., D.S.O., Chief of the General Staff,
declared at Ottawa on Feb. 27 that the best preventatives of war
were (1) an effective League of Nations; (2) the maintenance
of the British Empire League of Nations; (3) an efficient Citi-
zen army. At Toronto on Mch. 14 General McBrien stated
that " war can be insured against — the premium being paid
either in services or taxes." He contrasted Canada's $2.50 per
capita preparedness expenditure with that of the United King-
dom, which was $25. The expenditure of the United States on
war preparedness he quoted at $15 and that of Australia at $7.50
per capita. In Parliament on May 12 the Minister of Militia (Mr.
Guthrie) presented his Estimates with the preliminary remark
that there was a "vast amount of mis-information" on the sub-
ject. He first stated that : "The pay of our men in the Militia
has advanced from 50 and 60 cents, as it was in pre-war days,
to $1.25, the minimum of to-day. The pay of our Permanent
Force has advanced from 80 and 90 cents, in pre-war days, to
$1.70, the minimum of to-day "
This meant, he said, that the vote asked from Parliament
to carry on the Militia of Canada ($11,800,000) would repre-
sent, in pre-war days, a vote of $5,900,000. Practically, the
Militia was back to the actual basis of cost in 1905. The Min-
ister's speech was an elaborate defence of the Militia and the
Government expenditures with varied comparisons as to other
countries ; he denounced those who would depend upon the re-
turned soldier in case of emergency rather than spend money
upon the Militia and declared that the veterans had done their
bit ; he stood for the National duty, the duty of maintaining "a
sufficient Military and Naval defensive force to preserve law
and order within our own boundaries, to preserve the life and
property and homes of our people, and to keep the shores of
this beloved country inviolate". The exact expenditure for De-
fence per head was given as $1.69 in Canada, $6.13 in Australia,
$3.80 in New Zealand, $5.55 in South Africa, $23.35 in the United
Kingdom, $13.13 in the United States, $10.10 in Denmark, $14.03
in Sweden. Speaking in Toronto on May 29, Mr. Guthrie
stated that Canada ranked last among the civilized nations in
military expenditure both per capita and in proportion to the
country's wealth.
The subject was discussed at a Regina meeting of the United
Service Institute (June 22) when Maj.-Gen. E. C. Ashton, Quar-
termaster-General, observed that: "Canada cannot stick out
her chest and declare that she is a nation and, at the same time,
declare that she will not contribue a dollar toward her obliga-
tions." Lieut.-Governor H. W. Newlands expressed regret that
the capital of Saskatchewan should find difficulty in raising the
troops which were being recruited there and stated that when
the Duke of Devonshire was there "they could not even raise
12
338 THE CANADIAN ANNUAL REVIEW
a Guard of Honour". Sir Fred. Haultain, Chief Justice, urged
a system of compulsory training and Maj.-Gen. J. F. L. Em-
bury declared that the pre-war Militia training — inefficient as it
had been — was the foundation of the reputation which the
Canadians had made during the years of war. But economy
was the order of the day and, on July 19, it was announced that
the Permanent Force would be reduced by 10 per cent., or from
a maximum of 4,000 officers and men to 3,600.
At this time a new Manual of Field Service Regulations
was issued and, speaking on its nature and terms at Calgary
(Aug. 12) Brig.-Gen. H. F. McDonald declared that: "We must
leave no stone unturned to perfect devices of destruction which
will always insure our man-power having the ascendency".
Hence, he argued, the future soldier and his Manuals should
lay stress upon the bandolier and the machine gun, the poison
gas and the grenade, the mortar and cannon, as more formidable
than bayonet and lance. At Montreal on Nov. 11 Maj.-Gen.
J. H. McBrien again urged preparedness: "There are pacifists
who advocate disarmament irrespective of world conditions.
They really advocate unpreparedness. The surest method of
securing peace is to adopt a strong and active defensive policy
against war. This policy consists of many wise Treaties, the
support of the League of Nations, the support of that inner
league of nations, the British Empire, the raising of the physique
and morale of our population, the spreading of knowledge of
war, the organization of the nation, the formation and develop-
ment of Patriotic societies." He stated that the Government
had "gone beyond the limit" in its Defence economies : "A
population of 9 millions cannot defend 3^2 million square miles
of country against either a first or second class Power, and we
are still dependent on the Motherland."
The other side of the subject was put to the Commons on
Apr. 19 when A. R. McMaster, K.C., of Brome opposed the vote
of $1,500,000 for annual drill and declared that the history of the
last few years had taught humanity that military preparedness
did not constitute any real defence of mankind: "Surely some-
thing has been learned during the last five years, surely we in
Canada can lead the way in the reduction of military expendi-
ture, surely this annual drill can be postponed for another year."
S. W. Jacobs, K.C., of Montreal, proposed a reduction in the vote
of $450,000 to Cadet services. O. R. Gould of Assiniboia (Pro-
gressive) objected to Military training in schools and Militar-
ism in general: "Last year I protested against the continuance
of this military idea, and I repeat that protest on this occasion.
I deplore the fact that there are men in this country who see fit
to prolong an extensive military establishment." Levi Thomson
of Qu'Appelle, claimed that the vast majority of the young men
who went to the War, when men were most needed, had no mil-
itary training. He did not think the Minister had cut down his
expenditures as he should have done.
THE MILITIA DEPARTMENT AND MILITARY CONDITIONS 339
Major C. G. Power, M.C., Quebec, declared that :"If we are
purposing this large expenditure for the purpose of developing
a military spirit — and that seems to be the only reason so far
given — then it is my view that we should cut out the Military
expenditure altogether." He objected, on another vote, to pay-
ing for Highland uniforms as an unnecessary expense. On Apr.
29 the Militia estimates were, again, up in the House and Major
Power moved an amendment reducing the expenditure of $6,-
255,000 on the Permanent Force by $2,000,000 but it was re-
jected on division. The Rev. C. W. Wright, B.A., in Toronto on
Empire Day, urged this doctrine : "Let's not train our boys to
be soldiers. Let home, school and church unite positively to
implant ideals that will make Militarism impossible in coming
generations. I want boys to be prepared for citizenship based
on loyalty, purity and courage, as represented in the flag, and,
then, as true modern Britishers, they will fight only if they
must." There were many other presentations of this ideal and
the Saskatchewan Methodist Conference, at Regina on June 13,
denounced the current system of Cadet training in the schools
of that Province, and the opinion was expressed by a Committee
on Religious Education that military training ought not to be
given to boys but something purely physical without relation-
ship to drill in any form.
Meantime, the Cadet Corps had been receiving both politi-
cal and popular support. Training camps during June were
held at Sylvan Lake, near Calgary, and at Sydney, B.C., where
the boys numbered 1,000, strong, with emphasis laid on self-con-
trol and discipline. In July, Niagara-on-the-Lake saw a camp
of 4,200, running from 12 to 18 years of age, with the Toronto
boys conspicuous in their red tunics, and Maj.-Gen. V. A. S. Wil-
liams in command; at Sussex, N.B., 349 boys gathered and, as
elsewhere, camp routine and drill were followed by boxing, base-
ball and athletic sports ; at Pointe Aux Trembles, near Mont-
real, there were 1,400 in camp with Highland Cadets picturesque
in kilts and sporrans ; at Fort Qu'Appelle the Saskatchewan
boys had a great camp with, nearby, a squadron of the Light
Horse and a visit from the Lieut. -Governor to inspect the re-
sults of training and exercise ; Winnipeg Cadets had a camp at
Ness, near Gimli, on the shores of Lake Winnipeg, with 3,000
present and more time devoted to sports than to drill. Indian
boys made excellent Cadets and they had one notable field-day
at Brochet, near Calgary ; many of the Cadets took to shooting
and became experts with the Virden, Man., Collegiate Institute
winning the Cadet Gallery trophy at Ottawa on July 6, and an
Ottawa Cadet, W. D. George, winning (Oct. 21) the individual
championship of the Ontario Cadets' Rifle Association.
Rifle shooting was encouraged by the Department and the
Militia leaders and it was not an unpopular pursuit. The Dom-
inion Rifle Association met at Ottawa on Mch. 1st and was ad-
dressed by H.E. the Duke of Devonshire, Hon. Hugh Guthrie
340 THE CANADIAN ANNUAL REVIEW
and Maj.-Gen. Sir Sam Hughes; Maj.-Gen. E. W. Wilson, C.M.G.,
of Montreal, was re-elected President. The Canadian Bisley
Team was completed in May with Lieut. -Col. C. W. Peck, v.c.,
D.S.O., M.P., in command and such shots as W. A. Hawkins, C. R.
Crowe, George Mortimer and F. Richardson in its ranks. At
the Bisley meet on July 7-21 the Canadian team used the Lee-
Hnfield instead of the Ross Rifle ; they failed in the King's Prize,
the Kolapore and McKinnon cups but won some lesser prizes.
Some active organizations in Canada were the B.C. Rifle Asso-
ciation with Brig.-Gen. J. Duff Stuart as President, that of Nova
Scotia with Lieut. -Col. the Hon. John Stanfield as President
and that of Ontario with Lieut. -Col. A. E. Gooderham, elected
in succession to Sir Edmund Osier. Some other important mili-
tary bodies were the Canadian Cavalry Association with Brig.-
Gen. W. R. Paterson, D.S.O., Winnipeg, as the 1921 President;
the Canadian Artillery Association with Lieut.-Col. J. J. Creel-
man, D.S.O., as President; the Canadian Military Institute, To-
ronto, with Colonel William Hendrie, Hamilton, as President.
An incident of the year was the appointment on June 30 of
G. T. Clarkson, Chartered Accountant of Toronto, as a Dominion
Commissioner to investigate into and report upon "any and all
reported irregularities and frauds of any kind whatsoever in
connection with the payment at the par of exchange of sterling
drafts, official cheques, letter and cable transfers, British money
orders and British currency to members of the Canadian Ex-
peditionary Force in respect of, and representing, moneys re-
ceived by them for pay and allowances and also in respect of
pensions and also as to payments made to others than returned
soldiers and pensioners." The Enquiry lasted during the rest
of the year and was conducted at Ottawa, Toronto, Hamilton,
Winnipeg, Vancouver and other centres. J. M. Godfrey, K.C.,
was the Government Counsel and the Militia Department rece-
ived, in certain details, quite a searching investigation.
On Oct. 31 Sir John Douglas Hazen, Chief Justice of New
Brunswick, was appointed a Commissioner to investigate into
and report upon the claims (1) of persons residing or carrying
on business in Canada who had been subjected to loss and pecu-
niary damages arising from the destruction of life and prop-
erty through the illegal warfare of the enemy during the War,
and (2) for damages to which persons residing or carrying on
business in Canada had been subjected for breaches of contracts,
owing to the operation of the Statutory List of persons in neut-
ral countries with whom such contracts were declared illegal,
and (3) to determine whether they were within the categories
of Reparations under the Treaty of Versailles. The enquiry
was not concluded at the close of the year. The chief Military
appointments of the year are given below as (1) Permanent
Force and Militia and (2) Officers placed in Command of re-
organized Regiments :
THE MILITIA DEPARTMENT AND MILITARY CONDITIONS 341
Appointments to Permanent Force, Staff and Militia.
To be Major-General Brigadier-General H. C. Thacker, C.B., C.M.G., D.S.O.
To be Major-General Brigadier-General H. A. Panet, C.B., C.M.G., D.S.O.
Director-General of Medical Services Colonel J. W. Bridges, c.B.E.
Director of Military Operations and Intel-
ligence Colonel J. Sutherland Brown, C.M.G., D.S.O.
Director of Organization and Personal
Services Colonel W. W. P. Gibsone, C.M.G., D.S.O., O.B.E.
Superintendent, Dominion Arsenal, Quebec. Lieut. -Col. Count de Bury and de Bocarme
General Staff Officer, M.D. No. 3 Lieut.-Col. F. O. Hodgins, D.S.O.
General Staff Officer, M.D. No. 5 Lieut.-Col. J. M. Prower, D.S.O.
Inspector of Cadet Services M.D. No. 12... .Lieut.-Col. L. P. O. Tudor, D.S.O.
To Command:
1st Mounted Brigade Lieut.-Col. S. F. Smith
2nd Mounted Brigade Lieut.-Col. J. R. Morris
4th Mounted Brigade Lieut.-Col. B. B. Morrill .
5th Mounted Brigade Brig.-General W. A. Griesbach, C.B., C.M.G., D.S.O.
6th Mounted Brigade Brig.-General R. W. Paterson, C.M.G., D.S.O.
7th Mounted Brigade Colonel N. S. Edgar
1st P E.I. Heavy Artillery Brigade Lieut.-Col. D. A. MacKinnon, D.S.O.
3rd Brigade Canadian Field Artillery Lieut.-Col. R. F. Massie, D.S.O.
6th Brigade, Canadian Field Artillery Lieut.-Col. J. J. Penhale, D.S.O.
8th Brigade, Canadian Field Artillery Lieut.-Col. G. S. Rennie, C.M.G.C..
9th Brigade, Canadian Field Artillery Lieut.-Col. W. R. Rierdon, D.S.O.
llth Brigade. Canadian Field Artillery Lieut.-Col. W. Simpson
14th Brigade, Canadian Field Artillery Lieut.-Col. J. K. MacKay, D.S.O.
19th Brigade, Canadian Field Artillery Lieut.-Col. W. H. McLelland
5th Regt., Canadian Garrison Artillery Lieut.-Col. F. A. Robertson, D.S.O.
llth Infantry Birgade Colonel A. E. Dubuc, D.S.O.
14th Infantry Brigade Colonel J. B. Rogers, C.M.G., D.S.O., M.c.
16th Infantry Brigade Colonel H. M. Campbell, o.B.B.
17th Infantry Brigade Colonel W. E. Thompson
21st Infantry Brigade Colonel A. Ross, C.M.G., D.S.O.
23rd Infantry Brigade Brig.-General V. W. Odium, C.B., C.M.G., D.S.O.
Canadian Air Force, Wing Commander R. Leckie, D.S.O., D.S.C., D.P.c.
Canadian Air Force, Wing Commander D. G. Joy, A.P.C.
Canadian Air Force, Wing Commander R. F. Redpath
Canadian Air Force, Wing Commander J. S. Williams, M.C., A.P.C.
Canadian Air Force, Wing Commander J. L. Gordon, D.P.C.
Divisional Engineers, M.D. No. 2 Lieut.-Col. E. Pepler, D.S.O.
Divisional Engineers, M.D. No. 12 Lieut.-Col. A. J. McPherson
Canadian Machine Gun Corps, 8th Brigade.Lieut.-Col. G. S. Currie, D.S.O., M.c.
Canadian Machine Gun Corps, 1st Motor
Brigade Lieut.-Col. W. C. Nicholson, D.S.O., M.C.
Canadian Machine Gun Corps, 4th Brigade.Lieut.-Col. A. P. Miller
Honorary Commands:
The Royal Canadian Artillery Honorary Colonel His Majesty THE KING
Les Voltigeurs de Quebec Honorary Colonel Brig.-Gen. T. L. Tremblay, c.M.G.,
D.S.O.
The York Regiment Honorary Lieut.-Col.. ..Lieut.-Col. T. G. J. Loggie, i.s.o.
13th Scottish Light Dragoons Honorary Colonel Lieut.-Gen. Sir R. E. W. Turner,
v.c., K.C.B.
The Irish Fusilliers of Canada Honorary Lieut. -Col.... Lieut.-Col. Robt. Kelly
5th B. C. Light Horse Honorary Colonel Maj.-Gen. Sir A. C. Macdonell,
K.C.B., C.M.G., D.S.O.
5th (B.C.) Regt. Canadian Garrison
Artillery Honorary Colonel Lieut.-Gen. Sir A. W. Currie,
G.C.M.G^ K.C.B.
22nd Regiment Honorary Colonel Marshal Ferdinand Foch, G.C.B.
1st B.C. Regiment (1st Battalion) Honorary Lieut. -Col. ...His Honour W. C. Nichol
The Cameron Highlanders of Canada Honorary Lieut.-Col.... Maj.-Gen. Sir A. C. Macdonell,
The Stormont and Glengarry Regt Honorary Colonel Maj.-Gen. Sir A. C. Macdonell,
The Winnipeg Grenadiers Honorary Colonel Lieut.-Col. Sir Hamar Greenwood,
Bait., K.C.
The Halifax Rifles Honorary Colonel Rt. Hon. SirR. L. Borden, G.C.M.G.
The Toronto Regiment Honorary Colonel General Lord Byng, G.C.B., G.C.M.G
To Command Re-organized Regiments of the Militia.
The Governor General's Body Guard Lieut.-Col. W. W. Denison, D.S.O.
18th Canadian Light Horse Lieut.-Col. H. W. Arnold
13th Scottish Light Dragoons Lieut.-Col. H. A. Stewart, D.S.O.
9th (Grey's) Horse Lieut.-Col. F. Moss
12th Manitoba Dragoons .....Lieut.-Col. A. L. Young
16th Canadian Light Horse Lieut.-Col. G. H. Bradbrooke, D.S.O., M.c.
1st Hussars Lieut.-Col. C. H. Reason, O.B.B., D.S.O.
The Alberta Mounted Rifles Lieut.-Col. L. H. Dawson
The Border Horse Lieut.-Col. F. Palmer
The Manitoba Horse Lieut.-Col. D. O. E. Boulton
The Manitoba Mounted Rifles Lieut.-Col. A. C. D. Piggott
The P. E. Island Light Horse Lieut.-Col. W. C. Cook
The Ontario Mounted Rifles Lieut.-Col. J. F. H. Ussher
342 THE CANADIAN ANNUAL REVIEW
2nd Dragoons Lieut.-Col. J. Z. Fraser
17th Duke of York's Royal Canadian Hussars Lieut.-Col. E. Gill, M.C.
The King's (Nova Scotia) Mounted Rifles Lieut.-Col. T. A. Lydiard
The Governor General's Foot Guards Lieut.-Col. W. B. Bartram
The Queen's Own Rifles of Canada Brig.-Gen. J. A. Gunn, C.M.G., D.S.O.
The Queen's Own Rifles of Canada (2nd Bn.) Lieut.-Col Reginald Pcllatt
The Royal Grenadiers Lieut.-Col. A. E. Gooderham
The Simcoe Foresters Lieut.-Col. D. Carmichael, D.S.O.
The Halton Rifles Lieut.-Col. J. Ballantine. D.S.O.
The Northern Pioneers Lieut.-Col. R. H. James
The Kent Regiment Lieut.-Col. N. Smith
The Durham Regiment Lieut.-Col. H. Read, O.B.B.
The Grenville Regiment (Lisgar Rifles) Lieut.-Col. T. A. Kidd
Le Regiment de Montmagny Lieut.-Col. J. N. Roy
The Picton Highlanders Lieut.-Col. L. H. MacKenzie
The Mississauga Regiment Lieut.-Col. C. C. Harbottle, C.M.G., D.S.O.
North Saskatchewan Regiment (1st Bn.) Lieut.-Col. W. J. White, D.S.O., M.C.
The York Rangers Lieut.-Col. F. F. Clarke. D.S.O.
The Grey Regiment Lieut.-Col. G. D. Fleming
The Rocky Mountain Rangers Lieut.-Col. J. R. O. Vicars
The Norfolk Rifles Lieut.-Col. L. F. Aiken
The 48th Highlanders Lieut.-Col. C. W. Darling
Les Franc-Tireurs du Saguenay Lieut.-Col. J. O. Lachance
The Rainy River and Kenora Regiment
The Alberta Regiment (2nd Bn.)
Le Regiment de Chateauguay
South Saskatchewan Regiment (1st Btn.)
South Saskatchewan Regiment (4th Bn.)
.Lieut.-Col. C. N. Schnarr
Lieut.-Col. P. J. Daly, C.M.G., D.S.O.
Lieut.-Col. J. H. Chabelle, M.C.
Lieut.-Col. J. A. Cross, D.S.O.
Lieut.-Col. A. H. D. Sharp, M.C.
The Essex Fusiliers Lieut.-Col. S. C. Robinson
The Grey Regiment Lieut.-Col. G. F. McFarland
The Peel Regiment Lieut.-Col. A. J. McCausland
Le Regiment de St. Hyacinthe Lieut.-Col. E. D. Payau
The Lake Superior Regiment Lieut.-Col. J. D. Young, D.S.O., M.C.
The Calgary Regiment, (1st Bn.) Brig.-Gen. H. F. McDonald, C.M.G., D S.O.
The North British Columbia Regiment Lieut.-Col. J. H. McMullin
The Peterborough Rangers Lieut.-Col. A. W. McPherson
The Three Rivers Regiment Lieut.-Col. F. I. Ritchie
The West Toronto Regiment Lieut.-Col. H. W. A. Foster, D.S.O., M.C.
The Kootenay Regiment Lieut.-Col. C. H. Pollen
The Canadian Scottish Regiment Lieut.-Col. C. W. Peck, v.c., D.S.O.
The Irish Regiment Lieut.-Col. R. H. B. Magee
The Royal Hamilton Regiment Lieut.-Col. R. A. Robertson
The Colchester and Hants Regiment Lieut.-Col. J. Wise, D.S.O.
The P.E. Island Regiment Lieut.-Col. C. J. C. Stewart, M.C.
The Middlesex Light Infantry Lieut.-Col. O. L. Berdan
The Cape Breton Highlanders Lieut.-Col. M. D. E. McKeigan
Haldimand Rifles Lieut -Col. H. J. Gould
Prince Albert Volunteers Lieut.-Col. F. J. O'Leary, M.C.
1st (Halifax) Regiment Lieut.-Col. S. C. Oland
Edmonton Regiment (1st. Bn.) Lieut.-Col. R. H. Palmer, D.S.O.
Le Regiment de Dorchester Lieut.-Col. J. A. Gilbert
The Halton Rifles Lieut.-Col. G. O. Brown
The Ontario Regiment Lieut.-Col. C. F. Bick
The Elgin Regiment Lieut.-Col. D. E. Gerrard
The Northumberland (N.B.) Regiment Lieut.-Col. C. Donald
Le Regiment de Joliet Lieut.-Col. C. T. de Lanaudie>e
The Toronto Regiment Lieut.-Col. J. B. Rogers, C.M.G., D.S.O., M.C.
Canadian Officers Training Corps:
University of Saskatchewan Lieut.-Col. A. E. Potts
Mt. Allison University Major F. L. West
Alberta University Lieut.-Col. H. J. McLeod
Queen's University Lieut.-Col. A. Macphail, C.M.G., D.S.O.
McGill University Lieut.-Col. A. A. Magee, D.S.O.
Manitoba University Lieut.-Col. N. B. MacLean, D.S.O.
12th Signal Battalion Lieut.-Col. J. H. Leeson, M.C.
Under Sir James Lougheed this Department
The Depart- continued its excellent record into 1921. The Re-
SoicTe0* p°rt °* ^ Parkinson, Deputy-Minister up to
CiviMle-E*- t^ie en(* °f tne year, stated that the re-organization
tablishment: °f 1920 had resulted very favourably and the cost
Questions of of administration been reduced by 6 55 per cent, to
Pension and date; the number of students in the Vocational
Settlement Branch was reduced during 1921 from 4,714 to 634;
the amalgamation of various sections of the Pen-
sion Administration with this Department had increased effic-
iency and lessened expenditure. Elaborate reports were sub-
THE DEPARTMENT OF SOLDIERS' CIVIL RE-ESTABLISHMENT 343
mitted by W. C. Arnold, M.D., Director of Medical Services ; R. B.
O'Sullivan, O.B.E., Director of Dental Services; R. W. Coulthard,
Director of Orthopaedic and Surgical Appliances Branch; E.
Flexman, D.S.O., Director of Administration;, J. F. Waddington,
Supervisor of Expenditures ; Mrs. Arthur Van Koughnet, Hon.
Superintendent of Soldiers' Comforts. The total expenditure
on War Pensions to Mch. 31 was $86,811,620.
The Report of the Board of Pension Commissioners (Lieut.-
Col. J. T. C. Thompson, K.C., D.S.O., Lieut. -Col. J. W. Margeson,
K.C., and Colonel E. G. Davis, C.M.G., M.D.) for Mch. 31, 1921,
showed an increase in rates during the fiscal year; a reciprocal
arrangement as to Pensioners with Great Britain and the United
States; the operation of 20 District offices throughout Canada
at the beginning of this period and the closing, later on, of 7 of
these offices ; the awarding of 7,562 new pensions totalling $2,-
554,957 of a liability, the cancelling of 24,639 pensions involving
$3,400,821, and the refusal of 3,573 claims; an Expenditure for
the year of $38,191,901 with, at its close, 70,661 Pensions in force
totalling $31,184,837 of yearly liability. During the year some
changes in position were made. Dr. E. G. Davis, C.M.G., Director
of Medical Services, resigned to become a member of the Pen-
sion Board, and was succeeded by Dr. W. C. Arnold; J. H. W.
Bower, General-Superintendent, Engineering Branch, resigned
and was replaced by W. H. George ; Major C. G. Arthur, D.S.O.,
Chief Inspector, was transferred to London, England, as Over-
seas Representative of the Department.
The scale of Canadian Pensions for total disability was said
to be higher and better than in any other belligerent country;
the annual rate awarded to widows of privates with children
was very much better. In the Commons on Mch. 10, however,
Mr. Premier Meighen moved for the re-appointment of a Special
Commission to consider questions relating to the pensions, in-
surances and re-establishment of returned soldiers. The Prime
Minister said that for two Sessions a Committee had acted
along these lines and the Administration's policy in regard to the
treatment of returned men had been largely developed by its
work. It was re-appointed, with additions, and with Hume
Cronyn as Chairman. On Mch. 22 this Committee reaffirmed its
stand of the past year not to re-open the question of further
cash gratuities for the re-establishment of soldiers ; suggestions
also were made as to the placing of the commutation of pen-
sions on a sound actuarial basis. Proposals made to the Com-
mittee by C. G. MacNeil, Dominion Secretary of the G.W.V.A.,
had included increases in widows' pensions ; pensions for guard-
ians of soldiers' orphans ; no deduction of pension because pen-
sioner did not live in Canada ; the equalization of pensions irre-
spective of rank ; pensions to dependents of those who died sub-
sequent to discharge.
The Committee's Report was submitted to the House on May
26. It recommended that the 50 per cent, bonus on pensions be
344
THE CANADIAN ANNUAL REVIEW
continued for another year and be applicable to pensioners re-
siding outside of Canada. No change in the Pension Act was
made to bring widowed mothers to the same scale as widows,
but the Committee advised a change regarding the earnings of
children of widowed mothers. It decided, formally, against any
further bonus or gratuity. It was also unable to formulate any
scheme for making loans to the returned men for re-establish-
ment purposes. In regard to Housing and Unemployment, it
suggested that the Government should consider extension of the
Federal Housing project and recommended that the Govern-
ment assume liability, under the Workmen's Compensation
Acts, for disabled men, thus enabling them to secure employ-
ment more freely.
Important recommendations were made regarding the after-
care of tubercular ex-soldiers ; amendments suggested to the
Soldiers' Insurance Act would permit an initial payment of
$1,000 on the death of the assured, instead of one-fifth of the
face value of the policy; benefits of the Act, also, were extended
to returned soldiers resident outside of Canada ; a recommenda-
tion was made that pensioners be allowed to assign a portion of
their pension toward payment of premiums. In the House on
May 28 the Report was discussed and a Resolution by I. E.
Pedlow providing pension privileges to 221 Canadian citizens
who had served (as Poles) with the Polish army, was voted
down without division. Later in the Session the Prime Minister
stated that the new Pensions Bill included most of the recom-
mendations made by the Committee and that a vote of $12,-
000,000 for continuing the Government's Housing policy would
be found in the Estimates.
Figures issued by the Department of Re-Establishment in
October, up to June 30, showed Pensions totalling $30,802,406,
payable to 50,287 disabled soldiers and 19,411 dependents and
including allowances for 25,413 wives, 34,721 children, 178 par-
ents of disability pensioners and 10,142 children of dependent
pensioners. Up to June 30, 20,126 additional pensioners had
accepted a final payment of their claims — an adjustment which
cost the Government, in all, $8,127,052. The total amount paid
out in pensions up to Aug. 31, 1921, was $141,414,216. Since
Sept. 1st, 1920, when the returned soldiers' Insurance scheme
came into operation, 5,636 veterans had taken out policies rang-
ing from $500 to $5,000, the aggregate amount of the policies
being $15,410,000 and the premium income $189,240. Up to
Sept. 30, 1921, 71 claims had been paid totalling $185,862. Major
Beresford Topp, D.S.O., M.C., was in charge of the administration
of this Act. For the calendar year 1921* the sum of $55,621,469
was spent by this Department and the Pension Board, including
$36,671,013 on Pensions and $13,562,012 on Treatment.
According to the Report of the Soldiers' Settlement Board
as at June 30, the number of Soldiers' loans approved was 20,465,
*Note.— Statement by Hon. H. S. Beland, Minister, Apr. 20, 1922.
THE GREAT WAR VETERANS' ASSOCIATION IN 1921 345
and the amount of money advanced $83,884,210. Of this amount
$46,000,000 was for the purchase of land, $26,000,000 for the pur-
chase of stock and equipment, and the rest for improvements
and removal of encumbrances. Of 12,233 men liable for repay-
ments to the Board on June' 30, 9,802 had met their obligations,
1,416 had made payments in advance of their liabilities and 390
had paid off their debt to the Board in full. The total area of
free and purchased land held by soldier settlers was 4,854,799
acres, and, up to June 30, these settlers had broken, approximate-
ly, 600,000 acres of new land. In 1920 the grain crops produced
by them were valued at $10,000,000. The Parliamentary Com-
mittee was informed on Apr. 21 by Major John Barnett, Chair-
man of this Board, that 25,550 soldiers had taken up farms under
the Act and that more thau $108,000,000 was invested in this
re-establishment effort. In the six years ended June 30, 1921,
the Soldiers' Civil Re-Establishment Department had expended
$105,159,531 and the total additional outlay for war service
gratuities approximated $164,000,000. It may be added that the
Department had trained, up to September, 1921, a total of 51,471
incapacitated men with 41,224 graduating.
Incidents of the year included a second payment by the
Imperial Government, totalling about $500,000— with $1,000,000
in the first payment and $500,000 still to come — on account of
Canada's share in the profits of the British War Canteen ser-
vice ; the decision of the Canadian Government to include former
members of the Imperial and Allied forces — under pension and
resident in Canada — in the assistance given on account of cur-
rent unemployment; an Order-in-Council, passed early in the
year, terminating on May 1st the reservation for soldier settle-
ment of all Dominion lands in the Western Provinces within a
radius of 15 miles of a railway — except insofar as this reserva-
tion applied to lands withdrawn in the Porcupine Forest reserve,
the Riding Mountain reserve, Hudson's Bay reserve, Doukho-
bour reserve, or any individual parcels specially reserved. An-
other Order at this time extended the relief granted to disabled
men by the Department until Apr. 23 with the maximum
amounts which could be expended on behalf of any one case as
follows: Man and wife $60; first child under 16 (girl 17) $12;
second child under 16 (girl 17) $10; maximum payable $85, and
no further assistance to be granted to single men without de-
pendents after Mch. 31.
The G. W. V. A. and Other Veteran Associations. Events in
this organization consisted, chiefly, of Resolutions and Deputations to
the various Governments, with continuous representations at Ottawa
by the active Dominion National Secretary, C. G. MacNeil, as to the
Association's policy on points before Parliament or its Committees.
R. B. Maxwell of Winnipeg, the President, visited various centres and
kept the members interested in the objects and work of the Association.
During the year the membership of the Association was officially stated
as 140,000 enrolled and the number of branches as 887. The Declaration of
Principles of the Association had, as its first clause, the following state-
ment : "That the foundation principle upon which this our Association
346
THE CANADIAN ANNUAL REVIEW
rests is national service, and that we unreservedly commit ourselves to
a standard of service for Canada and the British Empire, in the work of
national development, as full, as self-sacrificing, and as free from per-
sonal motives as that rendered by our Army overseas."
Early in the year the Alberta Provincial Convention of the G.W.VA.
submitted to the Dominion Government a series of Resolutions passed
17th Dec., 1920, urging (1) that it should appoint a Soldier Committee of
Re-Establishment, the members to be representative of the several
Overseas Forces, and to include one War Widow and one bereaved
parent and that this Committee submit a report with recommendations;
(2) that Pensions be increased to one dollar per cent, of disability and
all pensions be equal irrespective of rank; (3) that all men who served
in the Imperial Forces, whether Naval or Military, who resided in
Canada, or who in future may reside in Canada, should, when suffering
from a recurrence of War Disability, be given free hospital treatment
and allowances at the same rate as their comrades of the C. E. F. ; (4)
that the Land Settlement Act be amended to authorize the returned sol-
diers to borrow money to enable them to become owners of their own
homes at the same rate as the Farmer settler. Headquarters were re-
tained at Calgary and W. J. Botterell of Red Deer was elected President.
On Feb. 16-18, 1921, the Saskatchewan G. W. V. A. Convention met
at Weyburn and passed Resolutions declaring (1) that the Dominion
Government be requested to appoint a Commission of representative
commercial, merchantile and agricultural interests to investigate the
Banking system of this country; (2) that the present Federal Housing
scheme was not practicable because it placed responsibility of financing
upon the municipal unit which, in a number of cases, was not able to
assume this responsibility and that, therefore, the Government should
inaugurate a scheme similar to that of Australia; (3) that this Associa-
tion "records its implicit faith in the fairness and honest intentions of
the British Government toward Ireland and that we deplore the influ-
ences at work in Canada"; (4) that pensions should be equal irrespective
of rank and that the present Pension scale for disability and death was
inadequate and should be at the rate of $100 per month for total dis-
ability or widows' pensions, with payment at a proportional rate for
partial disability; (5) that certain specified public positions should be
reserved for tubercular soldiers and that preference in all cases should
be given returned men ; (6) that the G. W. V. A. should unite with all
other ex-Service Associations. Appreciation was expressed of the Red
Cross Society and of the Saskatchewan Government's aid to the unem-
ployed; James McAra was re-elected President.
The Dominion Executive met at Ottawa on Feb. 6-8 and the Do-
minion Secretary was instructed to place a large number of matters be-
fore the current meetings of the Parliamentary Committee. The Ontario
Command met at Brantford on May 24-25 with 67 delegates present,
and heard an address from Mr. Premier Drury. Resolutions were passed
(1) protesting against the alleged employment of 500 United States
workmen at the Chippawa Power Works; (2) asking the Federal Gov-
ernment to grant the Soldiers' Settlement Board $50,000,000 for loans to
returned men to erect homes in cities — the individual limit to be $5,000
with interest at 5 per cent, and the loans to be repayable in 30 years;
(3) urging Pension Act amendment so as to permit continuance of allow-
ance on account of the wife of a pensioner with children where such
pensioner suffered the loss of his wife by death. E. D. O'Flynn of
Belleville was re-elected President.
The British Columbia G. W. V. A. Convention was held at Chilliwack
on June 4 with a record attendance, and it declared by Resolution : (1)
that some form of universal service and training was desirable in Can-
ada; (2) that Lord Byng's appointment as "a great soldier and leader"
was an honour to Canada; (3) that the Provincial Government should
implement its promises to give veterans permanent positions under the
Moderation Act; (4) that $250,000 of the Canteen Fund receipts of $2,-
THE GREAT WAR VETERANS' ASSOCIATION IN 1921 347
000,000 should be granted by the Dominion Government to the G.W.V.A.
with $750,000 devoted to Scholarships for soldiers' orphans and $1,000,000
to relief of ex-Service men or dependents; (5) that an Advisory Board
on the Pacific Coast be appointed in connection with the Fisheries De-
partment—which latter should be separated from Marine; (6) that the
University of British Columbia be completed and extended in its opera-
tions ; (7) that the post-sanitarium treatment of Service patients be
improved with standard workshops, sheltered employment, industrial
colonies, a nursing service, central clinics and additional pensions ; (8)
that vocational training to soldiers' minor orphans be given ; (9) that all
ex-Naval men be given the same consideration and privileges as Land
soldiers ; (10) that "the dependent sons of loyal comrades be given mem-
bership in our Association upon reaching the age of 18 so as to be in-
spired by the deeds and actions of their fathers." Loyalty, with de-
nunciation of all sedition, was a dominant note of the meeting.
The Dominion Executive met at Port Arthur on July 6 and passed
a long Resolution urging the Government to enact State Unemployment
Insurance and to aid in distributing labour so as to meet supply and de-
mand conditions ; and another as to restriction of Immigration, increased
expenditure on, and better regulation of, Public Works and the con-
struction of a National highway from coast to coast. The Provincial
Command of Nova Scotia met at Amherst on Sept. 22 and declared
itself in favour of State Unemployment Insurance, of distribution of
labour through the Employment Service Council of Canada, of all Fed-
eral, Provincial and Municipal labour contracts containing a guarantee
providing that 25 per cent, of the men employed be ex-soldiers, of rail-
way fares at one cent per mile being available for unemployed returned
men and dependents.
The Great War Veterans' Association for all Canada met at Port
Arthur on Oct. 17-19, in its 5th annual Convention, with fraternal dele-
gates from the Imperial Veterans in Canada, the Army and Navy Vet-
erans, and the Grand Army of United Veterans, present by invitation.
R. B. Maxwell was in the chair and in his Presidential address urged
the exclusion of politics from the organization and the determined exer-
cise of moral force and influence ; expressed opposition to any form of
National retrenchment without sufficient assurances that it would not
affect pensions or any regulation now in force for the benefit of ex-
service men or their dependents ; advocated productive public work for
the unemployed returned soldier, the study by members of economic
systems and the discarding of all antiquated and musty theories.
Resolutions were passed in favour of: (1) a Dominion Loan to ex-
soldiers for Housing purposes ; (2) all Labour contracts to contain a
clause providing for the employment of ex-Service men to the fullest
possible extent with a preference by employers to returned men when
reducing staffs ; (3) fraternal relations with the American Legion and
affiliation with the G. W. V. A. in the United States ; (4) support to the
formation of a Federation of returned soldier organizations in Canada
with a view to ultimate amalgamation ; (5) Pension legislation enacting
that the pension awarded a widow, without children or dependents, be
increased to $75 a month without regard to income from other sources,
with a similar basis for widows with children and $25 for the first child,
$15 for the second and $12 for the third; (6) the retention of the present
Pension bonus and a rating of the disability pension at $1.00 per cent,
disability; a strong immigration and naturalization policy and the prin-
ciple of future exclusion of Chinese and Japanese and prevention of sale
or lease of land to them; (7) constructive and specified improvements
in the Soldiers' Settlement Act and changes in the Insurance Act ex-
tending periods of application from 2 to 5 years, an increase of the maxi-
mum Insurance policy to $10,000 and making fraudulent representations
as the only ground for refusal ; (8) Civil Service regulations ensuring ap-
pointment of a returned soldier as one of the Commissioners, placing
temporary employment of ex-Service men on the same basis as per-
348 THE CANADIAN ANNUAL REVIEW
manent employees for annual increases and making permanent, after
six months service, the temporary appointments of ex-soldiers; (9) a
Plebiscite amongst returned men as to distribution of the Imperial Can-
teen award ; (10) a greatly increased Pension rate based on a minimum
of 50 per cent, disability paid to men suffering from a disability which
compelled them to live in a specified area. R. B. Maxwell of Winnipeg
was re-elected President and C. G. MacNeil Dominion Secretary. During
October, also, the Association undertook a "Clean Sweep Campaign," to
secure adjustment of the outstanding claims of ex-Service men and de-
pendents arising from war service, and this was continued into the next
year. It may be added that the Presidents of the Provincial Commands
for 1921-22 were as follows:
Province Name Place
Nova Scotia Lieut.-Col. C. E. Bent, D.S.O Lawrencetown
New Brunswick Major H. Preistman McAdam Junction
P.E. Island Colonel D. A. McKinnon, D.S.O Charlottetown
Quebec Colonel James Scott Quebec
Ontario Dr. W. D. Sharpe Brampton
Manitoba Andrew Irwin Killarney
Saskatchewan Colonel James McAra P^egina
Alberta Percy Engle Craigmyle
British Columbia T. M. Harriett Vancouver
Other Soldiers' organizations held important meetings during the
year. The Grand Army of United Veterans urged the Parliamentary
Committee at Ottawa, on Apr. 4, to grant free medical treatment for
five years, Government employment for disabled men, adequate com-
pensation for deserted wives, compensation for parents who lost sons on
service, a Committee with power to grant loans in each Military District
and re-affirmed the demand for a $2,000 cash bonus to all veterans. The
1st annual Convention of the G. A. U. V. was held at Winnipeg on May
3-4 with Major W. J. Morrison, Toronto, in the chair and 18 branches
represented.
The more important Resolutions urged (1) amalgamation of all
Soldier organizations in Canada with a view to complete re-establish-
ment of all ex-Service men and women and the dependents of those who
made the supreme sacrifice ; (2) that all minors up to the age of 21 be
given an opportunity to become apprentices in trades — the manufactur-
ers to pay prevailing apprentice wages and the Government to make
up same to a living wage ; (3) the creation of a Re-establishment Com-
mittee in each Military District to enable ex-Service men who had be-
come financially burdened as a result of the War, to discharge their
obligations by means of a loan, interest free, for two years, with the
right, also, to build homes and re-establish medical or other professional
practices out of the loan; (4) the training of minors, where found neces-
sary, who enlisted under the age of 21 years (instead of 18 years, as at
present), re-examination of all vocationally-trained students who had
been unable to obtain employment with free transportation on all Gov-
ernment railways for disabled ex-service men or women; (5) that the
pension awarded a widow without children or a widowed dependent
mother with no dependents be increased to $100 per month, without re-
gard to income from other sources and other increases in the general
scale; (6) that all Pensions be equal without regard to rank and that
adequate compensation for deserted wives and families of all ex-mem-
bers of the Force be given; (7) that pensions be granted to dependents
of those who died subsequent to discharge when it was determined that
loss of vitality attributable to war service was the contributing cause of
death ; (8) that all Governments and public bodies should refuse to
award contracts to firms, on tender, who did not employ at least five per
cent, disabled men ; (9) that a tax be placed on the moneys of alien
nationalities leaving Canada permanently for their own or other coun-
tries.
Gordon R. McNichol, D.C.M., of Hamilton, was elected President, J.
Harry Flynn, Toronto, 1st Vice-President, and J. F. Marsh, Toronto,
THE PROJECTED UNION OF VETERANS' ASSOCIATIONS 349
Secretary. Shortly after this meeting J. H. Flynn and H. Capewell of
Toronto were asked to retire from the organization; W. L. Rayfield, v.c.,
became 1st Vice-President. The Army and Navy Veterans of Canada
had, during these years of war and reconstruction, acquired considerable
strength ; it had an active organization in Toronto, but its headquarters
at this time were in Winnipeg. The Manitoba Provincial Association
met there on Aug. 24, and re-elected E. E. Browne-Wilkinson as Presi-
dent ; a Resolution was passed in reference to the Dominion grant of
$50,000 to the G.W.V.A., out of the Imperial Canteen Fund, and asking
questions as to the stipulations, if any, made in respect to the grant ; the
question of union with other organizations was discussed and objection
expressed as to the G.A.U.V. ; progress was reported in establishing a
permanent Reserve fund for veterans, widows and children.
The 4th Dominion Convention of this body opened at Toronto on
Oct. 25 with Major F. G. Taylor, D.S.O., M.L.A., in the chair. Resolutions
were approved: (1) Supporting amalgamation of all Soldiers' organiza-
tions in Canada but with the proviso that conditions should be non-
political and non-sectarian with no class distinction in membership; (2)
stating that the organization, if formed, should affiliate with the British
Empire Service League ; (3) declaring that the $1,800,000 of Canteen funds
held in trust by the Government should be devoted to the establish-
ment and maintenance of community homes for disabled and infirm war
veterans and their families, and to provide an education, up to and in-
cluding the first year at University, or a sound business education, not
only for the children of disabled and infirm veterans, but also for chil-
dren of the fallen ; (4) asking the Government and the National Rail-
ways to dispense with the services of women and girls employed during
the War to take the places of men unless they were widows or depend-
ents of ex-Service men and to fill their places with men, preferably
Veterans ; (5) urging that the provision of productive work, rather than
unemployment doles, be adopted as the Government plan of aid to
Veterans at this juncture; (6) supporting the aims of the Last Post Fund
in securing to every ex-Service man or woman of the Empire, dying in
Canada, a decent and honourable interment. Major M. J. Crehan of
Vancouver was elected President.
It may be added, in reference to the Canteen Fund matter, that the
Government, besides its grant of "$50,000 to the G.W.V.A., gave $20,000
to the G.A.U.V. and $12,500 to the Army and Navy Veterans. During
the entire year the question of amalgamating the G.W.V.A., the G.A.U.V.
and the Imperial Veterans' Association and the Army and Navy Vet-
erans, was widely discussed. Interjected into the matter was the tenta-
tive formation at Toronto on June 21 of the Canadian Legion of War
Veterans — an attempt to bring together the 500,000 ex-soldiers in the
Dominion; J. F. Marsh of the G.A.U.V. was active in the matter and
this excited some feeling in the other organizations. On July 24 a pub-
lic meeting was held in the Toronto Armouries and a number of favour-
able addresses given ; another meeting on Aug. 5 was attended by
C. G. McNeil, of the G.W.V.A., Peter Wright, President of the British
Seamen's Association; William Turley, Provincial Secretary of the
G.W.V.A.; Fred Marsh and President G. R. McNichol, of the G.A.U.V.
In other directions, also, the movement was going on but in a different
form. The G.W.V.A. Executive at Port Arthur (July 5) declared by
Resolution that such an organization, to render efficient service, must
have:
(a) A comprehensive Dominion charter of incorporation.
(b) Club buildings and meeting-places throughout Canada.
(c) Headquarters in Ottawa, the seat of Government, and centre
of official Departments.
(d) An effective and efficient organization in each Province.
(e) A non-political and non-partisan constitution embodying aims
and objects worthy of its soldier-citizen members.
350 THE CANADIAN ANNUAL REVIEW
(f) An official organ for the purpose of maintaining interest,
spreading information and securing adequate publicity.
(g) A name which clearly defines the Association.
(h) A policy combining protective care of the widow, fatherless, and
the disabled; constructive measures on behalf of ex-service men and
their dependents ; intelligent interest in International affairs, unswerv-
ing loyalty to Canada and the Empire.
To meet these ends union was essential and the Executive declared
itself ready to meet and discuss union or closer relations with other Vet-
erans' bodies. Following this, on Sept. 16, a meeting of various Socie-
ties in Vancouver declared in favour of amalgamation with strong
speeches from Maj.-Gen. R. G. E. Leckie and Major M. J. Crehan ; sim-
ilar opinions were expressed in Victoria, B.C., and by the Nova Scotia
Command of the G.W.V.A.; the Winnipeg Convention of the G.A.U.V.
favoured the principle of union, as did the Port Arthur meeting of the
G.W.V.A. Meantime the Canadian Legion of Veterans had partially
completed organization (Oct. 1) with a Council which included Lieut.-
Col. R. K. Barker, D.S.O.; Col. J. A. Currie, M.P.; Rev. Canon H. C. Dixon,
Brig.-Gen. W. A. Griesbach, Brig.-Gen. F. S. Langton, C.M.G.; Maj.-Gen.
Sir F. O. W. Loomis, Lieut.-Col. W. C. Mitchell, Brig.-Gen. R. Rennie,
Maj.-Gen. Sir David Watson, and others. In England Canadian ex-
Service men had started organization on May 28, 1920, as the United
Kingdom Branch of the G. W. V. A., with C. A. Donovan as Chairman;
its 2nd annual banquet was held in London on Apr. 23, 1921, with 1,542
members announced by Mr. Donovan, who stated that in the past few
months they had found work for 58 members, had settled numerous
cases of pensions, had obtained Income tax rebates for widows, and,
generally, had looked after the interest of the members. F. W. Taylor
was elected as the new President.
The Government policy as to Naval matters
The Govern- in this year, as in 1920, was one of compromise.
ment and The Hon. C. C. Ballantyne, Minister of Marine,
tion?- The Fisheries and Naval Affairs, would have liked a
Navy creative, practical policy of sea-power for Canada
League of but public opinion apparently did not warrant it.
Canada. There was little of the real sea-conscious spirit in
Canada ; there was a vague but general willingness
to let matters rest in the hands of the British Navy; since the
War there had grown up a general feeling that public money
could be spent for more practical purposes ; the Washington
Conference increased the sentiment opposed to Naval expendi-
tures at a time when the United States and Great Britain were
dis-arming ships and scrapping fleets. The acceptance in 1920
of a few ships of war from Great Britain as the nucleus of a
Canadian Navy, had been carried through Parliament by Mr.
Ballantyne with some difficulty, and in the next year the ap-
propriation of even necessary maintenance funds was strongly
opposed.
In the Commons on May 27, Mr. Ballantyne, after stating
that the Government had accepted from the Mother Country one
modern cruiser, two modern torpedo destroyers, and two
modern submarines, and that these ships had arrived at Halifax
on Dec. 18, 1920, and were now on the Pacific Coast, added that
they had also sold the old and obsolete cruisers Niobe and Rain-
ow, as well as the two submarines used during the War, to the
THE GOVERNMENT AND NAVAL AFFAIRS; THE NAVY LEAGUE 35 1
New Brunswick Rolling Mills for $135,000. The vote of $2,500,-
000 for maintenance of the Royal Canadian Navy was discussed
at length. The Minister stated that there were 600 officers and
men on the three Canadian ships and 45 cadets in the Royal
Naval College at Esquimalt — which had been established in
1911; that the graduates bore an excellent reputation and that
38 of them were under training at Canada's expense in the
British Navy; that the dockyards at Esquimalt had been closed
for nearly a year and that those at Halifax were being operated
on reduced time ; that the vote asked from Parliament was for
the operation and maintenance of the cruiser and two torpedo
destroyers, two submarines, the College and the dock-yards at
Esquimalt and Halifax.
Michael Clark (Lib.) protested against this expenditure
under existing conditions and wished the ships had remained in
England; A. R. McMaster (Lib.) declared it a great mistake to
have taken these ships from Britain at all ; Ernest Lapointe was
opposed to the action because there was no settled policy for the
British Dominions as a whole. The item eventually passed.
Following these debates the Toronto Globe of June 6 referred to
the general question of reducing armaments, checking military
competition and huge naval expenditures: "In such measures
of Naval defence as may still be necessary, Canada is willing to
do its share. Two courses have been suggested; direct money
contributions and the maintenance of a Canadian fleet which
would co-operate with the central Navy. The latter proposal
is, we believe, the one that would be supported by Canadian
public opinion."
Naval incidents of the year associated with Dominion policy
or action included the visit of the small Canadian fleet to Esqui-
malt in March after a prolonged cruise from Halifax via Trini-
dad, Panama, Nicaragua, San Diego, Cal., various Mexican ports,
and Vancouver ; the return of the ships to Halifax in July and a
warm welcome at Jamaica, where a stop was made, with sub-
sequent visits to Sydney, and Charlottetown, and Montreal — the
last place being reached on Sept. 1st; the visit to Montreal,
also, on this latter date, of four ships of the British North
Atlantic and West Indies Squadron and the appointment of Vice-
Admiral Sir W. C. Pakenham, K.C.B., as Commander-in-Chief
with a new flagship called the Raleigh ; the retirement of Rear-
Admiral Sir Charles E. Kingsmill from the Directorship of the
Canadian Naval Service and a presentation to him on June 16,
at Ottawa, of a handsome silver flagon and tray, suitably en-
graved, by the officers of His Majesty's Canadian Navy, serving
in Canadian and Imperial ships, and by senior Civil Officers of
the Department, the Royal Naval College and the Dockyards ;
the grant by the Naval Department of certificates of proficiency
in Radio-Telegraphy to 29 out of 52 men who sat for examina-
tions during the month of June. At Vancouver on July 18 G. J.
Desbarats, C.M.G., Deputy-Minister of the Naval Service, stated
352 THE CANADIAN ANNUAL REVIEW
that there were many competitors for entrance to the Royal
Naval College with only 15 admissions possible, that a training
school for boys would be opened at Halifax, that H. M. C. S.
Aurora was now carrying 50 lads for general training in sea-
manship and that the Canadian Navy was also training engi-
neers for the Imperial Navy.
The Work of the Navy League of Canada. This organiza-
tion had rather uphill work during 1921 and there were changes
in its personnel and policy. In Great Britain the Navy League
issued a pronouncement of policy which was distinctly one of
Pacificism in the sense of preparing for dis-armament, for re-
duction in Naval effort and for elimination of the old British
ideal of sea supremacy as being essential to the safety of an
Island Empire. This extraordinary volte face of an organization
created to urge and maintain supreme sea-power, as absolutely
essential to the National life, was embodied in the following
passage of a Memorandum issued on Oct. 13, 1920, and signed
by the Duke of Somerset as President of the League: "It is
said that we live by sea-power, but it is far more correct to say
that we live by sea service. It is, of course, perfectly true that
we have attained our present position by the use of sea power,
no Island can exercise power in any other way, and, though
maintained for defence and used as British Seamen have always
used it, it is power none the less. And it is in the idea of power
that most of the difficulty lies. The sea, then, presents mankind
with two extreme conceptions: the possibility of exercising the
greatest power in the world, or a field for almost unlimited ser-
vice— service without which we cannot exist, and which is es-
sential to the well-being of all nations.*'
The latter was the policy recommended and it, of course,
helped to make aggressive advocacy in Canada more difficult.
There were vigorous differences of opinion in the British League
but on Apr. 30, 1921, the policy was approved at a meeting of
the Grand Council and it was urged that Great Britain and the
United States should take the lead in proposing a Conference
"between all those Powers whose geographical positions impose
upon them guardianship of the seas, to decide in what way this
joint guardianship may be carried out." The Navy League in
Canada did not agree with this view, in a wide and general sense,
and at its annual meeting on June 1st sent the following Message
through its President (^milius Jarvis) to Mr. Meighen at the
Imperial Conference:
Whereas the British Navy from the earliest times has been the
chief factor under Providence in securing and maintaining freedom, for
all, in sea-borne world trade and unrestricted inter-national competition
has been the result; and whereas the necessity for, and the advantages
of, unity on the part of the Sister Nations of the British Empire in the
defence of their several and joint territories and trading interests and
for the due and formal recognition of such unity by Nations outside the
Empire, were demonstrated beyond doubt during the Great War; and
whereas Canada is resolved for all time and in all circumstances to be
THE GOVERNMENT AND NAVAL AFFAIRS; THE NAVY LEAGUE 353
and remain a loyal and indissoluble part of the British Empire; sharing
the faith common to all free Nations within the Empire that the integ-
rity and stability of the whole Empire fabric is not more inviolable than
that of the smallest nation within her ample folds, and that responsi-
bilities and privileges common to each are common to all without dis-
tinction:
Be it therefore Resolved that Canada is ready and willing to assume
her just and proportionate share, in common with her sister nations of
the Empire, of the burden of such Imperial defence as shall be ad-
judged fit and necessary at that Conference to safeguard Canadian
nationality and Imperial unity, and that the Navy League of Canada
hereby assures the Prime Minister of Canada that any obligations in
which the Government of Canada may think proper to co-operate at
the forthcoming Empire Conference in the matter of Empire unity, will
have the fullest possible measure of loyal advocacy and support from
the League's Members and friends throughout the Dominion.
The Annual meeting was held at Halifax on June 1-2 in the
newly-built Navy League Institute, with ^Emilius Jarvis, of
Toronto, in the chair and representatives present from all the
Provinces except British Columbia and Saskatchewan. Mr.
Jarvis described the object of the League as, primarily, to edu-
cate the masses in the "vast importance of sea-power, sea-
kriowledge, sea-interests, and their inextricable association with
National existence." The membership was stated at 15,000.
Edward Wodson, Secretary of the Educational Committee, re-
ferred to the absence of J. Castell Hopkins, Chairman, who had
recently resigned his position, and presented an elaborate Re-
port of the Committee's work during the past year. The total
distribution of League pamphlets in the year was stated at 104,-
000 and, since the Committee's appointment in 1919, at 879,000;
the number of lettergrams or special leaflets distributed was
160,000 with 5,000 copies of a 1921 Navy League Calendar and
18,000 Dominion membership certificates. The campaign of
education in Lantern slides, public lectures and meetings, sea-
song publication, phonograph records, children's books on Ships
and Men of the Empire, and through Prize Essays in schools, was
dealt with at length.
The Report of Hon. James Craig, Chairman of the Relief
Committee, showed $5,115 spent in sailors' relief work. It was
decided by Resolution to sever connection with the British and
Foreign Sailors' Society. The Report of D. A. Paine, Treasurer,
showed Assets of $1,068,277 of which $65,000 was invested in
the Sailors' Home at Vancouver, $275,000 at Halifax, $14,000 at
Charlottetown, $16,000 at Montreal and $25,000 at Sydney; the
Endowment Fund or reserve was $460,000 and the balance in
Bank on Dec. 31, 1920, was $152,752; the Receipts of the year,
including 1919 balance, were $727,817. The Report of Sam
Harris, President of the Ontario Division, showed a Provincial
membership of 11,570 contained in 130 branches, with Boys'
Naval Brigades operated at nine points and 760 members.
Gordon B. Jackson, Secretary of the League, reported a per-
sonal campaign of speech-making and educational work in the
West with over 30 addresses. The Provincial Divisions then
354 THE CANADIAN ANNUAL REVIEW
announced contributions for Dominion purposes which totalled
$26,622 with only Manitoba, Ontario and Quebec sharing in the
vote.
Resolutions were passed (1) viewing with "great appre-
hension" the British Navy League's "departure from a policy
which has been our greatest safeguard" and declaring that it
did not affect the policy of the League in Canada ; (2) re-
organizing the work of the League by combining the direction
of The Sailor, as the organ of the League, with the Secretarial
work of the Educational Committee in the hands of one official
— Edward Wodson being afterwards appointed; (3) favouring
the appointment of a General Secretary for the four Western
Divisions of the League; (4) urging the Government to place
the Boys' Naval Brigades (numbering 15 or so) on a financial
basis as favourable as that of other organizations — such as the
Cadets — in Canada, and, also, to organize a Royal Canadian
Naval Reserve. An important incident of the meeting was the
opening of the Halifax Sailors' Institute on June 1st with ad-
dresses by F. K. Warren, President of the Nova Scotia Navy
League, Jfemilius Jarvis, Lieut. -Governor Grant, Sam Harris,
President in Ontario, and R. E. Armstrong, President in New
Brunswick.
Meanwhile, on May 18, the Ontario Division of the League
had met in Toronto with ^Emilius Jarvis in the chair. Various
Reports were received and a Resolution passed urging, as a
basis for representation of Provinces on the Dominion Council,
either the number of branches, number of members, or amount
collected yearly. Addresses were given by the President, Mrs.
W. E. Sanford of the National Council of Women, Miss Joan
Arnoldi of the I. O. D. E., and Hon. N. W. Rowell ; Gordon B.
Jackson, Secretary, was eloquent in his study of "The Shadow
of Nelson." Sam Harris, Toronto, was elected President, Lloyd
Harris of Toronto, Vice-President, with Dr. J. G. Evans, Kings-
ton, as 2nd Vice-President. During Admiral Beatty's visit to
Toronto a mass meeting was held on Nov. 28, under League
auspices, and an Address presented, signed by Messrs. Jarvis
and Harris, which stated, in part, that : "We claim for Canada
a heritage in the glorious service that, for over a century, se-
cured for the ships of all nations a peaceful, uninterrupted com-
merce on the seas, which has made the British Navy the might-
iest factor, in promoting the happiness and security of all man-
kind, the world has ever known, x x x The Navy League
of Canada lives, feels, and acts in the shadow of Nelson."
At the close of the year the League issued a statement in
the Canadian press protesting against undue or extremist agi-
tation for Naval disarmament. It asserted that the Symbol
of the reign of law against the rule of force in 1914 was — by the
help of God — the British Navy, and that the Washington Con-
ference was only possible to-day because of the ready efficiency
of that Symbol at the time of humanity's sorest need; that
THE SESSION OF PARLIAMENT; THE 1921 BYE-ELECTIONS 355
land-hunger, territorial ambition and kindred afflictions still
tormented the nations, and that the United States coastline was
25,000 miles while that of the British Empire was over 100,000
miles scattered over the Seven Seas, The document caused
considerable discussion and aroused, in particular, the Winnipeg
Free Press which vigorously attacked the League for an al-
leged jingoism. Incidents of the year included a report of
much work accomplished by the Victoria Branch of the League
which met on Feb. 4th and elected W. H. Langley Chairman, in
succession to R. T. Ravenhill, and inauguration by t^ie Montreal
Branch of a Navy League Club which was formally opened on
May 25.
This was Mr. Meighen's first Session as Leader
The 1921 of the House of Commons; it was destined to be
Parliament- the las^ ?ession before a General Election. Parties
Bye-Election* were visiDlv preparing for a contest which seemed
of the Year, inevitable ; leaders were getting policies beford
the people in elaborate speeches or varied Opposi-
tion motions ; several bye-elections were held and the results
attracted much interest. Mr. Meighen had a difficult task. His
Cabinet was not distinguished for its debating power — though
he, himself, was a remarkably skilled debater; Sir George
Foster, Mr. Doherty and Mr. Guthrie constituted his chief sup-
port in this respect ; against him was the forceful oratory of the
Liberal leader, of Mr. Lemieux, Mr. Beland and Mr. Lapointe
and, practically, the entire French contingent; opposed, also,
was the acute Parliamentary leadership of Mr. Crerar, the ex-
perienced skill of Mr. Fielding, the vigorous criticisms of Hon.
Charles Murphy and A. R. McMaster, K.C., and the trained dia-
lectic skill of Michael Clark. The notable personal changes
were the passing of L. J. Gauthier, K.C., from a Liberal party
allegiance of 34 years to the support of the Government; the
separation of Senator J. G. Turriff, a Liberal-Unionist, from
that party and affiliation with the Progressives ; the severing
of relations by Hon. A. K. Maclean with the Government and
return to his Liberal allegiance; the passing of F. L. Davis,
J. A. Campbell and W. A. Buchanan (Liberal-Unionists) to the
Independents, and of Major G. W. Andrews, D.S.O., of Winnipeg,
(Cons.)
The opening of Parliament was on Feb. 14, 1921, with H. E.
the Duke of Devonshire officiating. In the Speech from the
Throne His Excellency referred to the financial periods of pros-
perity and contraction following the War, the concurrent re-
duction in prices and the bountiful harvest of 1920; dealt with
the current revision of taxes, the revenue situation and existing
unemployment, as a world-wide condition; stated that an in-
vestigation was being conducted by the Department of Labour
into systems of Unemployment Insurance and Old Age Pen-
sions and promised early submission of the Canada-West Indies'
356 THE CANADIAN ANNUAL REVIEW
Agreement; described the first Assembly of the League of Na-
tions and promised to place the draft scheme for a Permanent
Court of International Justice before Parliament; mentioned
the recent Enquiry into Tariff conditions and declared that, in
any revision undertaken, "regard must be had to the necessi-
ties of revenue and that the principle of Protection to Canadian
labour and legitimate Canadian industries, including Agriculture,
which has prevailed for more than 40 years in this country, must
be consistently maintained"; promised various items of legis-
lation. The Address in reply was moved by James Mclsaac of
Kings, P.E.I., and seconded by J. A. MacKelvie of Yale, B.C.,
and the debate thereon lasted until Mch. 3rd.
On Feb. 15, Hon. Mackenzie King, Opposition Leader, sec-
onded by Hon. W. S. Fielding, moved an Amendment declaring
that: "We respectfully submit that Your Excellency's present
advisers do not possess the confidence of this House or of the
country, and that their retention of office constitutes a usurpa-
tion of the powers of popular government." In this Resolution
and in ensuing speeches by Liberals and Progressives, alike, the
position of the Government was directly challenged, its warrant
or popular authority absolutely denied. Mr. King declared that
it was not a Union Government, nor a Coalition Government,
nor a War Government, and yet denied being a Conservative or
Liberal Government. What was it then and whence its man-
date? "One of two alternatives alone is possible. Either the
Government is, as it purports to be, an entirely new Govern-
ment, with a new name, a new Prime Minister, a new set of
principles and policies, and the support of a new party, the ex-
istence of which remains as yet to be discovered; or it is the
soiled remnant and ragged edges of the old Unionist admini-
stration, which it disowns, travelling under counterfeits and
aliases, and purporting in all things to be what, in reality, it is
not."
The only test of its right to existence was said to be a Gen-
eral Election and this the Opposition elements consistently de-
manded. Out of 8 by-elections in Government seats since 1917,
Mr. King stated, the Union Government had held only one ; the
Meighen Government had already lost East Elgin and West
Peterborough. The Prime Minister (Mr. Meighen) denied the
alleged constitutional position absolutely and quoted British,
Australian, and New Zealand action as to dispensing with Elec-
tions since the War ; he pointed out that the West was entitled,
under the Census, to from 10 to 25 more seats in Parliament
and, if the House was dissolved before re-distribution, that rep-
resentation would be denied; he submitted that it was the duty
of the Government under existing conditions to carry on and
develop its policy so long as a majority of the members of the
House supported it. The debate was lengthy, elaborate, far-
flung in subject matter, acrimonious at times in word and
thought ; it covered a wide range of subjects and speakers and
THE SESSION OF PARLIAMENT; THE 1921 BYE- ELECTIONS 357
finally closed with rejection of the Opposition amendment by
116 to 91 votes.
Ensuing incidents included the possible Government defeat
of Feb. 16 when there was a minority of Government members
in the House and the saving of the situation by an impromptu
speech from E. W. Nesbitt ; the intimation of the Liberals on
Feb. 17 that all pairs would be refused during the Session — an
awkward condition in view of the absence of 10 Government
supporters through illness, and one which was kept up for
some time; the speech of L. J. Gauthier, K.c. (Lib.), on Feb. 17
in which he declared that the Liberals wanted Free Trade or a
tariff for revenue, only, with the overthrow of the Laurier fiscal
policy and that the Agrarian movement was a class movement;
the challenge by H. H. Stevens (Con.) on Feb. 22nd to the Lib-
erals to put their 1919 Tariff policy in a Parliamentary motion;
the declaration by Hon. T. A. Crerar, Progressive Leader, (Feb.
24) that "the country with which we can best trade for the next
number of years is the country immediately to the south of us"
and that Canada should have more Trade agents in the United
States ; the vote of the Progressive or Agrarian party with the
Liberals on the want of confidence Address motion of Mch. 3rd.
There was a debate on Mch. 29 regarding the five vacancies
in the House and as to the resignation of Sir Herbert Ames
who had accepted a Secretarial position on the League of Na-
tions, and Mr. Mackenzie King moved a Resolution declaring
that "representation in Parliament being a fundamental right
of the people, writs should be issued at once to fill the existing
vacancies in the House of Commons"; the Progressives sup-
ported the Opposition but the Government won by 89 votes to
58. Marine estimates and Shipbuiding policy and the Govern-
ment Merchant Marine also were discussed at length on this
date, on Apr. 7 and on Apr 12 when, amidst rather stormy
scenes, a deadlock occurred in Supply and was met by Closure.
On Apr. 1st H. M. Mowat, K.C., urged the appointment of more
Commercial agents in the United States and was supported by
H. B. Morphy — the idea was rather deprecated by Sir George
Foster and Mr. Fielding. By application of the closure on Apr.
14 about $80,000,000 of the Estimates were passed through the
House with a prolonged fight over $8,300,000 for the Merchant
Marine Service and a majority of only 19.
Succeeding incidents included the defeat of Mr. Fielding's
Reciprocity motion (Apr. 13) by 100 to 79 and passage of the
new French Trade Agreement on Apr. 14 and the Resolution
giving the Canada Wheat Board power to wind up its business ;
the statement in the Senate by Sir James JvOugheed as to U.S.
Commercial agents that it was unfortunate that in Canada
powerful concerns were relying on the Government to extend
their trade instead of doing the work for themselves, and that
Canada was spending more than $100,000,000 buying goods in
the United States which it could produce at home ; the Resolu-
358 THE CANADIAN ANNUAL REVIEW
tion presented by the Liberal leader on Apr. 27 declaring that
no step should be taken at the coming Imperial Conference in-
volving any change in the relations of Canada to other portions
of the Empire and that, "in view of the present financial posi-
tion of Canada, no action should be taken implying any obliga-
tion on the part of Canada to undertake new expenditures for
Naval or Military purposes," which was debated and defeated by
96 to 64; the opposition of the Liberals to the Government's
Civil Service Bill on account of its alleged tendency to restore
patronage and the vote of May 2nd when Hon. A. K. Maclean's
6 months' hoist was voted down by 72 to 57.
A peculiar incident of the Session was the reading by Hon.
Mr. Lemieux of a letter written by Hon. R. W. Wigmore, Min-
ister of Customs, on official paper dated Jan. 13, 1921, and ad-
dressed to the French Purchasing Commission, care of the
French Embassy, London. It mentioned the fact that "your
Government will have quite a few French Steamers taking grain
from the Port of Saint John, N.B., Canada, this winter," and
added: "The firm of Nagle and Wigmore, of which I am a mem-
ber, are very anxious to secure this business. We are the
largest firm of shipbrokers in Saint John and have done a very
large amount of business along these lines. As you are no doubt
aware, I am Minister of Customs and Inland Revenue in the
Canadian Government and x x x we are in a position to
handle your business to your satisfaction." The Minister's
statement in the House was as follows : "Since being called into
the Cabinet I absolutely have received no benefit in any way,
shape or form, financial or otherwise, from the firm of which I
was a member at that time. I wrote as I would write a letter
on behalf of my Hon. Friend from Maisonneuve if he were in
the business." The matter was further discussed on May 10.
The Budget debate which began on May 9 was enlivened by
a Liberal amendment declaring that the Tariff was a tax and
should not be based on the principle of Protection, though it
should encourage industries based on natural resources ; that
changes should be made so as to reduce the cost of living and
that there shpuld be a substantial reduction in the Government's
expenditures before any resort to new taxation. A. R. Mc-
Master (May 10) attacked the Sales Tax as unsound and bur-
densome upon the consumer and J. F. Johnston (Prog.) took a
similar view on May 18 with special reference to it as a burden
on returned soldiers; Hon. Mr. Lemieux (May 11) declared
himself in favour of a moderate and reasonable measure of Pro-
tection. The debate was closed on May 19, after a vigorous
discussion and the amendment defeated by 103 to 83.
The presentation by Rt. Hon. J. W. Lowther, M.P., of a new
Speaker's chair as the gift of the British House of Commons
and a duplicate of the Westminster chair took place on May 20.
In the House on the 28th the cost of the new Parliament Build-
ings was discussed and A. B. Copp claimed that the original esti-
THE SESSION OF PARLIAMENT; THE 1921 BYE-ELECTIONS 359
mate was $5,000,000, the present cost $10,000,000 and the prob-
able cost $12,000,000; Hon. Charles Murphy, a member of the
Committee in charge, gave an historical record of construction
and asked the Minister of Public Works to furnish the House
with full details of the $10,000,000 cost. The Opposition on June
4 protested against so many Ministers being in the Senate.
Parliament was prorogued on the same day by H. E. the Duke
of Devonshire after passing many Bills ; on June 3rd a farewell
Address had been presented to His Excellency and the Duchess
of Devonshire. The chief debates of the Session, in the Senate
and the Commons, may be summarized as follows :
Chief Debates in the Senate during 1921 Session
Date Subject Introduced by Hansard Page
Feb. 15. .The Address Hon. Lorne C. Webster 3, 12, 33 65 79
104
Feb. 1 7. .Dominion Elections Act Amendment Bill.Hon. Sir James Lougheed 2, 52, 56, 141
Mar. l.Xake of the Woods Control Board Bill Hon. Sir James Lougheed 127, 144, 149 153
155, 314, 637, 641
30..Canada and the Empire Hon. L. O. David 174
" 31. .National Transcontinental Railways —
Quebec Terminals Hon. Jules Tessier 185, 204, 228, 236
Apr. 7. .The Railway Problem in Canada Hon. J. P. B. Casgrain 218, 242, 257, 381,
407
14.. De Martigny Divorce Bill Hon. G. V. White 256, 325
21.. West Indies Trade Agreement Bill Hon. Sir James Lougheed 302, 329, 347, 421,
426
21. .Currency Bill Hon. Sir James Lougheed 302, 334, 353
26.. Royal Canadian Mounted Police Bill Hon. Sir James Lougheed 324, 408, 426
19..French Trade Agreement Bill Hon. Sir James Lougheed 279, 407, 426
Feb. 22.. Gold and Silver Marking Bill Hon. G. Lynch Staunton 65, 125, 281, 426,
447, 497
May 10..Court of International Justice Bill Hon. Sir James Lougheed 451, 479, 514, 551
Feb. 16..Revision of Punishment Bill Hon. Leonard McMeans 11, 63, 144
Mar. 8.. Post Office Act Amendment Bill Hon. P. E. Blondin 153, 168, 175, 189
194
Apr. 19..Judges Bill Hon. James Sir Lougheed 279, 305, 339. 408
434, 448, 474, 527,
591, 601
Apr. 19..Canadtan Nationals Bill Hon. Sir James Lougheed 279, 302, 315
26.. G. T. Arbitration Bill t Hon. Sir James Lougheed 324
May 4.. Conservation Act Repeal Hon. Sir James Lougheed 441, 500, 553
..Bankruptcy Bill Hon. Sir James Lougheed 531, 563, 573, 585
Chief Debates in the Commons during the Session
Date Subject Introduced by Hansard Page
Feb. 15. .Address in Reply James Mclsaac 5, 40, 55, 1 10, 154.
188, 230, 244.
262, 313, 351.
397, 448, 479
Feb. 28..Copyright Bill Rt. Hon. C. J. Doherty 350, 2909, 3830,
3850, 4256
Mar. 1.. Canadian Nationals Definition Act Rt. Hon. C. J. Doherty 397, 585, 644, 767,
2031, 2151
9..The Cattle Embargo Wm. Smith 702, 725, 758, 766
11. .Political Patronage in Civil Service Hon. Sir Sam Hughes 789, * 836, 2778,
2824, 2843, 2855
3248
11. .Lake of the Woods Control Rt. Hon. Arthur Meighen 788, 2033, 2346,
2445
14.. Development of Natural Resources R. J. Manion 841, 894
16..Hudson's Bay Railway J. A. Campbell 974,994,999, 1852
18. .Opium and Narcotic Drug Act Amend- 1069, 2263, 2268
ment Bill Rt. Hon. Arthur Meighen 2346, 2896, 3009
21. .Housing Problem H. C. Hocken 1134, 1152, 1857
23. .Fuel Supply .-. Michael Steele 1247, 1439, 1857
29..C. G. Merchant Marine Hon. C. C. Ballantine 6314, 557, 1272,
1701
30.. Unemployment and Immigration Mr. H. Deslauriers 1351, 1380
Apr. 4.. Proportional Representation J. A. Sexsmith 1528, 1542, 1554,
2027
5. .Canada West Indies Trade Agreement.. Rt. Hon. Sir George Foster 1557, 2251, 2263
360 THE CANADIAN ANNUAL REVIEW
Date Subject Introduced by Hansard Page
Apr. 5.. French Treaty Rt. Hon. Sir George Foster 1557, 1573, 2125-
2152
5. Judges Act Amendment Bill Rt. Hon. C. J. Doherty 1559, 1572, 1573,
2117,2151,3009
3972, 4040, 4250
" 6..Minister of Labour and Catholic Unions.. Ernest Lapointe 1625, 3584
14. .Court of International Justice Bill Rt. Hon. C. J. Doherty 2096, 2708, 3013
14..Canadian Wheat Board Rt. Hon. Sir George Foster.. ..21 16, 2117, 2158
19.. G. T. Railway Arbitration Rt. Hon. Arthur Meighen 2247, 2346, 2445,
2450, 2560, 2566
2977, 2821
" 22. .Retirement of Civil Servants Hon. J. A. Calder 2486, 2503, 4275,
4278
27. .Prime Ministers' Conference Rt. Hon. Sir Robert Borden 2626
" 28.. Civil Service Amendment Act Hon. E. K. Spinney 2685, 2778, 2823,
2835, 2887, 2921
4278. 4460, 4493
29.. Dominion Elections Amendment Bill Hon. Hugh Guthrie 2775, 2994, 3090,
4227, 4249, 4250
9.. The Budget Hon. Sir. Henry Drayton 2943, 3114, 3127
3146, 3209, 3263
3322, 3343, 3375,
3424, 3531, 3584,
3155, 3686
19.. Presentation of Speaker's Chair Rt. Hon. J. W. Lowther, M.P..3688, 3696
" 21.. Oleomargarine Act Rt. Hon. Arthur Meighen 563, 3759, 3760,
3879, 3886, 3905
" 23. .Air Board Michael Steel 3776
" 26.. Canada Temperance Act Rt. Hon. C. J. Doherty 3901, 4061, 4373,
4388
28.. Returned Soldiers Insurance Act Amend- 4260, 4262, 4355,
ment Bill Hume Cronyn 4361
June 1.. Pensions Act Amendment BUI Rt. Hon. Sir Arthur Meighen.4262, 4266, 4361,
4373
Various League of Nations Various Speakers 97, 110, 125, 157
Dates 164, 186, 188, 195, 204, 227, 229,
237, 247, 285, 357, 400, 435. 474,
2629, 2650, 2789, 3157, 3205
There was a good deal of important legislation during the
Session — over 200 Bills were passed. They included Sir Henry
Drayton's measures to strengthen the sections of the Customs
Tariff Act and to protect Canadian producers against the
dumping of foreign goods in the Dominion, with the ratification
of the West Indies Agreement and the French Trade Conven-
tion ; the Bills bringing the Grand Trunk Railway Co. completely
under control of the Government and providing for Arbitration
in connection with that Railway and an Enquiry into the system
and operation of the Canadian National lines by a special Com-
mittee of the Commons ; the legislation granting further assist-
ance to disabled soldiers in obtaining employment, extending
the scope of the Soldiers' Insurance Act, continuing the 50 per
cent, bonus upon pensions for another year, improving the posi-
tion of the widowed mother of a soldier, giving returned men a
better chance for appointment to the Civil Service. There was,
also, the Bill authorizing the importation, manufacture and sale
of Oleomargarine for another year.
One-half of the statutes passed were Divorce bills — in all
113 such bills became law, as compared with 100 in 1920 and 236
in the decade which ended in 1919. From Confederation to
date (54 years) Parliament had granted 610 divorces. A meas-
ure was passed which provided for the marking of foreign goods
so as to clearly indicate the country of origin; an Amendment
to the Customs Law dealt with the collection of Customs duty
on the amount of discount on the Canadian dollar in addition to
THE SESSION OF PARLIAMENT; THE 1921 BYE-ELECTIONS 361
the ordinary value of goods for Customs purposes ; an Act was
passed to standardize the grading of Dairy products and another
made the Monday of the week of November in which Nov. 11
fell a public holiday as Armistice Day — Thanksgiving Day to be
also observed on this date.
There were important changes in the Civil Service Act,
preceded by a very frank motion from Sir Sam Hughes on Mch.
11 which declared that "the best interests of Canada and its
people would be served, and the principles of responsible gov-
ernment would be maintained, by a system of political patron-
age wherein appointments to and promotions in both the Outside
Civil Service and the Inside Civil Service would be brought
under the specific consideration and recommendation of the
members of Parliament, or the defeated candidates of the party
in power". In his speech he suggested the appointment of a
Parliamentary Committee to supervise the work of the Civil
Service itself. A. E. Fripp (Ottawa) seconded the Resolution
and claimed that the Commission had not abolished patronage,
that the new system had cost too much, that among Civil Ser-
vants it had caused a great deal of unrest. He claimed that the
Commission had grown from 5 employees at $12,531 in 1908, to
16 permanent and 10 temporary employees at $43,925 in 1917-18,
while in 1919-20 the employees were 46 permanent and 159
temporary, with a salary list of $201,730. Hon. W. S. Fielding
stated that, in his opinion, a Member was a far more competent
judge of the ability of an office-seeker in his own Riding than
were the members of a Commission sitting in Ottawa. There
was a general discussion and, eventually, the motion was with-
drawn.
On. Apr. 28 the Government, through Hon. E. K. Spinney,
presented an Amending Act to that of 1918 and the Minister, in
moving it, stated that if its introduction left the impression on
the mind of any member that the Government was receding
from the main principles of the Civil Service Act of 1918, name-
ly, the abolition of patronage, he should at once "dismiss that
idea from his mind." The main features of Mr. Spinney's Bill in
its tentative form for Committee consideration was the provision
that three classes of Civil Servants be taken from under the con-
trol of the Commission: (1) Manual labourers; (2) Postmasters
whose remuneration in part or in whole consisted of a percent-
age on the receipts of the Office ; (3) Professional, scientific and
technical officers. Appointments to these classes of positions,
taken out of the control of the Civil Service Commission, would
be made by the Governor-in-Council, subject to a certificate of
qualification by the Commission — except in the case of profes-
sional appointees, where the Doctor's degree or lawyer's call to
the Bar would be sufficient. All promotions and transfers from
one Department to another would be taken from the control of
the Commission and be made by the Governor-in-Council on the
recommendation of a Minister after report by a Deputy-Min-
ister— the Auditor-General to make his own promotions.
362 THE CANADIAN ANNUAL REVIEW
The Opposition claimed that the measure was a return to.
the old Patronage system. On May 2nd Hon. A. K. Maclean,
who was largely responsible for the original measure of 1918,
moved the 6 months' hoist to the 2nd reading and declared in his
speech that the Bill was extremely important: "It is a reversal
of every principle of importance contained in the Civil Service
Act of 1918, it is a reversal of public policy as declared in the
Elections of 1917. x x x That is the purpose of this Bill —
a clear-cut, definite reversion to the practice of political patron-
age as it prevailed before 1918 — with a few trivial and perhaps
unimportant exceptions." Mr. Maclean admitted that the pres-
ent Act was not popular with sections of the Civil Service, of
Parliament, and of the public; the present Act, in so radically
changing that of 1918, had created confusion in places and there
were 10,000 more persons in the Service than in 1914 — though
this was due to the War. A return to political patronage meant,
to the speaker, extravagance in appointments and in salaries,
growing expenses and difficulties : "If the Act is repealed, and if
the Bill now before the House becomes law, then I declare that
the Railways of this country will become a machine of the poli-
tical parties, in which case this country might as well make up
its mind to get rid of the Railway system which we own and
control."
Mr. Doherty, Minister of Justice, in a reply for the Gov-
ernment, stated that "men of experience in the public business
of this country, men long years removed from any political ac-
tion," had expressed in strong and clear terms the opinion that
the Public Service of Canada, the business of the Government
and the country were suffering by the enforcement of certain
provisions in the Civil Service Act. He stated that the Bill was
purely tentative, that the Government did not stand arbitrarily
by its clauses and were ready to accept changes. As to political
patronage, the Minister pointed out that under the proposed
system the Civil Service Commission would certify as to quali-
fications and every appointment be subject to its veto.
F. F. Pardee (Lib.) stated that the present Act had not worked
out well in its application to manual labourers and Postmas-
ters ; the Bill, however, was a distinct return to old practices and
the proposed Committee of reference was a partisan one.
Hon. Mackenzie King supported the Amendment and agreed
with Mr. Maclean's views: "The legislation which we have now
before us is intended to lessen and restrict the powers of the
Civil Service Commission and to increase the powers of the
Governor-in-Council in those, particulars, x x x The pur-
pose of the Bill is to reduce the Civil Service Committee to a
skeleton." Hon. T. A. Crerar suggested the postponement of
the Bill until another Session when the Act of 1918 could be re-
vised and modified to meet the changed conditions. The Op-
position to the Bill included all the Liberals and Progressives
and Independents in the House ; Hon. Charles Murphy was
THE SESSION OF PARLIAMENT; THE 1921 BYE-ELECTIONS 363
vigorous in his protest and declared that "all the resources of
Parliamentary procedure should be used" to prevent it going
through. The Amendment was defeated by 72 to 57 with 32
pairs recorded. The Bill was then referred to a Special Com-
mittee, where it was discussed at length and in the main the
Opposition won its way. The Government withdrew certain
clauses and the new exemptions of the Act from Civil Service
Commission jurisdiction were, finally, limited to Government
railways and His Majesty's Canadian ships ; appointments to
Royal Commissions and Boards and as Deputy Heads
of Departments were left in the hands of the Govern-
ment; the Commission was instructed to prepare and maintain
a special list of persons in receipt of pensions for services in
the War and, in all examinations for entrance into the Civil Ser-
vice, the persons named on such list (possessing the necessary
qualifications) were to stand in order of merit on the list of suc-
cessful candidates above all others ; the provisions as to age
limit and physical requirements were not to apply to persons of
Military and Naval Service ; promotions were to be made for
merit by the Commission upon such examination reports, tests,
records, ratings or recommendations as the Commission might
prescribe ; the Commission was to report annually to Parlia-
ment. The Bill passed, finally, with one important new provision
as follows :
In any case where the Commission decides that it is not practicable
nor in the public interest to apply this Act to any position or positions,
the Commission may, with the approval of the Governor-in-Council, ex-
clude such position or positions in whole or in part from the operation
of the Act, and make such regulations as are deemed advisable pre-
scribing how such position or positions are to be dealt with.
The Lake of the Woods Control Board was established by a
Bill which Mr. Premier Meighen described on Apr. 13. There
had, originally, been a proposal for concurrent legislation in the
matter but the Ontario Government had declined to put the Bill
through its Legislature and the Dominion Government decided
therefore, to establish, permanently, a Board which had, since
1919, been acting under Orders-in-Council — with W. J. Stewart
and J. B. Challies of Ottawa Departments representing the Dom-
inion and L. B. Rorke and H. G. Acres representing Ontario. Mr.
Meighen pointed out that there were certain dams and power
developments along or near the International boundary of the
waters flowing into the Lake of the Woods ; also in the Winni-
peg River flowing westerly and northerly out of the Lake into
Lake Winnipeg; there was much power developable along the
English River which flowed westerly into the Winnipeg River,
and joined it about 50 miles west of the Lake of the Woods ;
"The amount of developable power (in Ontario) is, I think,
about 100,000 horse-power on the Winnipeg River, and on the
English River nearly 140,000 h.-p., but the amount of develop-
able power in Manitoba is 500,000 h.-p. Much of the Manitoba
power is already developed."
364 THE CANADIAN ANNUAL REVIEW
An Act respecting the Lake of the Woods and other Waters
was passed after a non-party debate and division, on May 31,
when Mr. Meighen pointed out that :"In this water basin there
may be said to reside four important factors or responsibilities:
(1) it is an international body of water; (2) having included in
it the outlets, it is also interprovincial ; (3) it is a navigation
basin; and (4) it is the source of very large power possibilities."
Under its terms the Governor-in-Council was given power to
make and enforce regulations as to dams, structures and such
other works in these waters as would (a) secure the most de-
pendable flow and beneficial use of the waters of the Winnipeg
River and of the English River severally ; (b) regulate and con-
trol the outflow of the waters of the Lake so as to maintain its
level in accordance with the Report of the International Joint
Commission of June 12, 1917, or between such elevations as might
be agreed upon by the United States and Canada; (c) regulate
and control the outflow of the waters of Lac Seul in a similar
way. The Opposition leader (Mackenzie King) opposed the
Bill and F. F. Pardee denounced it as "vicious in every sense of
the word" and as brought in for the purpose of enriching an-
other Province (Manitoba) at the expense of Ontario; Mr.
Crerar supported it and some Conservatives, like F. H. Keefer,
opposed it. The Government majority on 3rd reading was 96 to
Mr. Doherty, Minister of Justice, carried a Bill which auth-
orized and ratified, on behalf of Canada, the carrying into effect
of the Protocol of Dec. 16, 1920, establishing a Permanent Court
of International Justice under the auspices of the League of
Nations. An Act was passed to repeal the Conservation Act and
to make provision for the carrying on, by the appropriate De-
partment of Government, of the necessary services hitherto
conducted under the Commission of Conservation. A Bill to
consolidate the Income Tax Act and to regulate and enforce
payment of taxes was passed ; the Canada Temperance Act was
amended to provide that recent Provincial Referenda should not
be upset by reason of technical irregularities. The Currency
Act, the Statute relating to Corrupt Practices at Elections, the
Winding-up Act, the Bankruptcy Act, the Chinese Immigration
Act, the Dominion Elections Act, the Gas and Gas Meters Act,
the Inland Revenue Act, the Judges Act — as to salaries and al-
lowances— the Juvenile Delinquents Act, the Opium and Nar-
cotic Drug Act, the Patents and Pension Acts, the Post Office
and Prisons' Acts and the War Revenue Act, were variously
amended. A Bill was passed creating a Department of Customs
and Excise and the Immigration Act was amended to authorize
the Minister to appoint Boards of Enquiry at Ports of entry, en-
acting severe penalties for any Company or official assisting in
the evasion of the Act and authorizing the Government to make
regulations as to possession of money or passports by immi-
grants.
THE SESSION OF PARLIAMENT; THE 1921 BYE- ELECTIONS 365
Mr. Doherty's amendments to the Criminal Code covered a
wide range. Possession of a bomb, grenade, etc., without law-
ful excuse was made an indictable offence liable to 7 years' im-
prisonment ; aliens were forbidden to carry revolvers or fire-
arms of any kind without a permit ; the R.C. Mounted Police or
other Police Magistrates, etc., were authorized to grant licenses
to carry such arms; any intoxicated person driving a motor
vehicle was made guilty of an offence and liable to imprison-
ment for varying terms ; whipping was made a punishment for
certain offences ; anyone found guilty of stealing a motor car
or automobile was to be sentenced to not less than one year's
imprisonment ; playing "three card monte" and similar games in
public places was made an indictable offence liable to 3 years'
imprisonment; wilfully burning any chattel valued at $200 or
more became an indictable offence liable to 5 years' imprison-
ment.
Other incidents of the Session included the appointment of
A. S. Campbell as Chief Editor of Debates or Hansard in place
of the late T. P. Owens ; the visit of a large contingent of Sen-
ators and members of the Commons — with press representatives
— to Montreal on May 5 for the purpose of inspecting the Har-
bour Works; the statement on Dec. 14 that there were in the
Senate 4 members appointed by the Macdonald Administration
prior to 1896, 29 by the Laurier Government, 30 by that of Sir
R. Borden, 18 by the Borden Unionist Government and 14 by
Mr. Meighen. lAhe Bill to establish a Research Institute was
held up in the Senate but a sum was put into the estimates to
carry on existing work in this connection. G. W. Parent of
Quebec again urged his motion (Apr. 4) of the 1920 Session
that "an indemnity be paid the innocent victims who, during the
so-called Quebec riots of 1918, have either been killed or wound-
ed by the soldiers of His Majesty"; H. C. Hocken, Grand Mas-
ter of the Orange Lodge, denounced the proposal and Mr.
Doherty, Minister of Justice, stated that there was "no basis of
legal responsibility" so far as the Government was concerned;
Hon. Mr. Lemieux urged a "compassionate allowance" for the
victims and the motion was negatived on division.
Mr. Lemieux on Mch. 21 moved a Resolution declaring that
"Ministers of the Crown should be permitted to sit in either
Chamber, whenever measures and policies are introduced affect-
ing their respective Departments." He made an interesting
case for the proposal and Mr. Meighen expressed approval of
many of his points ; practically, however, it was a question if the
House had power to act by mere Resolution on such an im-
portant point. Rt. Hon. Mr. Doherty thought that it involved "a
fundamental change in our system of Government" and in
British Constitutional practice. Mr. Mackenzie King favour-
ed the principle but deemed further consideration advisable;
eventually the motion was withdrawn.
366 THE CANADIAN ANNUAL REVIEW
Canadian Nationals: Citizenship and Nationality. Under
legislation introduced by Mr. Doherty, Minister of Justice, in
the Commons on Mch. 1st, an important Act was eventually
passed defining what a Canadian National, or citizen, was — as
apart from or in addition to his position as a British subject. In
his brief explanation the Minister stated that: "The necessity
for such a definition results, in a large measure at all events,
from the fact that under different measures adopted in connec-
tion with the carrying out of the operations of the League of
Nations, there are provisions made defining certain rights and
privileges which may be enjoyed by the Nationals of the different
members of the League. Under those circumstances it is neces-
sary, I think, that we should make a definition by statute so that
the world may know who is, and is recognized as, a Canadian
National." The chief definitions, as finally passed, were as
follows :
1. (a) Any British subject who is a Canadian citizen within the
meaning of the Immigration Act, Chapter 27 of the Statutes of 1910, as
herebefore amended.
(b) The wife of any such citizen.
(c) Any person born out of Canada whose father was a Canadian
National at the time of that person's birth, or with regard to persons
born before the passing of this Act any person whose father at the time
of such birth possessed all the qualifications of a Canadian National as
denned in this Act.
2. (a) Any person who by reason of his having been born in Can-
ada is a Canadian National, but who at his birth or during his minority
became under the law of the United Kingdom or of any self-governing
Dominion of the British Empire, a National also of that Kingdom or
Dominion, and is still such a National, and
(b) Any person who, though born out of Canada is a Canadian
National, may, if of full age and not under disability, make a declaration
renouncing his Canadian nationality.
Lucien Cannon (Mch. 10) made the following comment: "I
understand that this Bill is a very important one in that it gives
to Canadian citizens what might be called a separate status
from that of a British subject. Has this Government in any
way, shape or form conferred with the British authorities,
formally or informally, with regard to this measure?" The
Minister's answer was in the negative. Major T. A. Vien
objected to "a definition which would allow a person to become
a Canadian citizen without at first giving up the domicile that
he had in any other country, be it France, Belgium, England or
elsewhere." The Minister, in reply, pointed out that: "All that
is required to become a British subject is that you should reside
in this country for five years. The question of domicile is not
raised at all ; there is no requirement of any kind of domicile.
We have gone further in our definition of Canadian citizenship
than is necessary to be naturalized as a British subject." He
stated that no other part of the Empire was taking this or
similar action. In the succeeding debate he stated that the Bill
gave no rights ; it simply legalized a definition. D. D. McKenzie
(Lib.) did not like the Bill and described the Minister of Justice
THE SESSION OF PARLIAMENT; THE 1921 BYE-ELECTIONS 367
as, practically, a Nationalist: "To be a Canadian citizen and a
British subject is good enough for me, and I do not find it
necessary to go to France for any definition of what I am." In
further discussion Mr. Doherty stated that: "The British Na-
tionality Act, which we have enacted also, provides how a man
can throw off his quality of British subject. This Act does not
touch that in the slightest. A man would lose his Canadian na-
tionality when he threw off his quality of British subject, but
his merely throwing off his quality of Canadian National does
not affect his quality of British subject at all." The Bill passed
in due course and became law.
Bye-Elections of the Year. In view of the possibility of a
General Election these contests aroused much interest. At the
beginning of the year a bye-election took place in West Peter-
borough through the retirement (July 8, 1920) of J. H. Burn-
ham (1917 majority, 3,418) a sort of Conservative free-lance in
the House who again became a candidate. Mr. Meighen and the
Gov^iiment, no doubt, expected to hold this industrial centre
ana the Premier on Jan. 10 addressed a mass-meeting with a
definite appeal for "The Tariff and Protection"; Sir George
Foster spoke on the 21st and made the point that out of $1,-
455,000,000 of field crops in the past year only $271,000,000
worth had gone outside the Home market ; the Liberal leader,
Mackenzie King, spoke on the 22nd and alleged that great cor-
porations held the Government in their hands with funds being
poured out of their treasuries in order to hold these monopolies
a few years longer. On Feb. 7 George N. Gordon, a young and
popular Liberal and a lawyer, was elected by 1,289 majority
over Roland Denne, the Government candidate. The other can-
didates were J. H. Burnham (Ind. Con.), J. C. Campbell, U.F.O.,
and T. J. McMurray, Labour; the Farmer candidate swept the
rural districts.
The next contest was in Medicine Hat, vacated by the death
of Rt. Hon. A. L. Sifton, Liberal-Unionist, who had been elected
in 1917 by 3,301 majority; the candidates were Lieut.-Col.
Nelson Spencer, CX-M.L.A., for the Government, and Robert
Gardiner, of Excel, for the United Farmers. The latter's Mani-
festo to the Electors declared for the U. F. A. and the platform
of the organized farmers of Canada. He had stood in 1916 for
the exemption of all soldiers' lands from all taxes during the
War. The Hon. T. A. Crerar and N. P. Lambert spoke for Mr.
Gardiner on June 15; the former urged Reciprocity with the
United States, a suggestion which was greeted with thunderous
applause, and the development of trade through the removal of
high protective duties ; Mr. Crerar also spoke at Irvine and de-
clared that Col. Spencer stood for a system which aimed to per-
petuate $13 shoes and $1 cow-hides — from which 10 pairs of
shoes could be made.
The Regina Leader (Liberal) urged its party to support Mr.
Gardiner; T. M. Tweedie, M.P., (Cons.) charged Mr. Gardiner
368 THE CANADIAN ANNUAL REVIEW
with having accepted the Recall and signed a letter of resigna-
tion for the U. F. A. officials (June 21) ; Col. Spencer had the
support, also, of Senator Robertson, Minister of Labour, H. H.
Stevens, M.P., Dr. W. D. Cowan, M.P., and other Western mem-
bers. Dr. Michael Clark, Mrs. L. C. McKinney, M.L.A., Alex.
Ross, M.L.A. (Labour) of Calgary and many others, supported
Mr. Gardiner who, on June 27, won a sweeping victory and a
majority of. 9,764, or 13,133 to 3.369 votes. The Liberal and Pro-
gressive press of the country united in describing the result as
an overwhelming defeat for the Government and an imperative
reason for an appeal to the people. The Conservative view was
voiced by the Ottawa Journal (June 29) : "The Liberals dared
not nominate a candidate, and the Grain Growers' candidate,
backed by the Labour 'Reds,' and the Liberals, has swamped
the Union candidate."
In the County of Yamaska, Que., an election took place on
May 28 to fill the seat vacated by the death of Oscar Gladu
(Lib.) elected in 1917 by 3,145 to 468. The candidates were
W. E. E. Aime Boucher (Lib.), Jos. Lambert, United Farmers'
Party, and A. A. Mondou (Con.). Mr. Mondou had been a Na-
tionalist, a follower of Bourassa and M. P. for the County in
1911-17; he now claimed to be an independent Protectionist with
liberty of action, if elected, and the proposal to abolish the
Military Service Act which was still on the statute book. An
immense meeting, said to number 15,000, heard the candidates
on May 14 at St. Francois du Lac, with addresses, also, by Hon.
R. Lemieux and Ernest Lapointe. In his speeches Mr. Mondou
denied being the Government candidate ; he was an old-time
Conservative, opposed to Reciprocity and Free Trade and, also,
to the party which had brought in Conscription as "a punish-
ment for Quebec's anti-Imperialism." A statement made by
Hon. C. C. Ballantyne in the Commons (May 11) that Mr. Mon-
dou was the Government candidate was a vital issue in the con-
test and at the various joint meetings addressed by the two rival
candidates — the Farmer had no real chance. Both denounced Con-
scription, both eulogized Laurier, but Mr. Mondou stood for Mr.
Meighen's Tariff policy, for conciliation and an ending to Que-
bec's Federal isolation. M. Boucher, however, was elected by a
majority of 1,643; the Farmers' candidate only polled 467 votes.
La Patrie (Ind.), Le Presse (Lib.), Le Devoir (Nat.), all united
in declaring that the Province was not yet ready to forget the
past or the Borden-Meighen policy of Conscription. It was
against the Government.
On the same day York-Sunbury, which included Frederic-
ton, the capital of New Brunswick, elected a successor to the
late H. F. McLeod with his Conservative majority of 3,937 in
1917. The candidates were R. B. Hanson, K.C., Fredericton, for
the Government, and E. W. Stair (Prog.) for the Farmers'
party. Mr. Crerar addressed a meeting for his candidate (Apr.
28), attacked the Government as having no mandate and advo-
SENATOR ROBERTSON AND THE LABOUR DEPARTMENT 369
cated Tariff revision downward with removal of the Tariff as
the ultimate goal. Mr. Meighen addressed two meetings on
May 23, urged Protection, and declared that his opponents did
not care a whit for Canadian industries. Mr. Hanson was elect-
ed by 947 majority with the rural districts voting for the Pro-
gressive. Meanwhile, Sir Thomas White had, on Apr. 6, re-
signed his seat in Leeds ; Hon. N. W. Rowell on June 2nd an-
nounced his retirement in Durham and J. A. Maharg resigned
his seat at Maple Creek, Sask., on accepting a place in the Pro-
vincial Government. West York was also vacant at this time
through the death of T. G. Wallace, and St. Antoine, Montreal,
by the retirement of Sir H. B. Ames.
Elections for these seats were, however, postponed though
on Mch. 29 a vigorous debate occurred in the Commons as to
the existing vacancies. Initiated by Mr. Mackenzie King, he
declared that: "The right of representation involves the right
of the people to participate in the making of their own laws, and
in the control of taxation, x x x The attitude which he
(Mr. Meighen) and his Government have taken in the matter
of the vacancies which at present exist in the representation is
an open defiance of these two political maxims and of the funda-
mental rights of the people of this country." The Opposition
Leader finally moved a Resolution declaring that writs should be
issued at once and elections held in these vacant seats. The
Premier, in reply, pointed out that by the enactment of 1919
the Government was given a discretion of six months in re-
spect to all vacancies and had a perfect right to use that limit
of time ; he, also, charged the Opposition with wanting to get
the Government members away in bye-elections while, at the
same time, refusing pairs. After a considerable debate, the mo-
tion was lost by 89 to 58.
It was a difficult year in Labour matters be-
The Govern- cause of the re-adjustments in prices and wages
ment Policy and the unemployment incidental to all periods of
Toward depression. Yet there was in Canada a general
Senator Rob- sP^r^ °^ conciliation and the work of the Labour
ertson and Department was of special interest and importance.
His Depart- The Report of the Minister for the year ending
ment. Mch. 31, 1921, showed that decline of employment
began in October, 1920, and that its volume steadily
increased until the number out of work was estimated at 200,000.
At the same time, an official estimate of unemployed in the
United States placed the number, when at its highest level, at
5,750,000, and the returns for Great Britain gave a total, there,
of over two millions. An equal proportion in Canada, as in
these countries, would have given over 400,000 men out of work.
The Government at this time undertook, in view of the
special conditions, to become responsible for the repayment to
a municipality of one-third of any money expended for the relief
13
370
THE CANADIAN ANNUAL REVIEW
of workers unable to obtain employment and in necessitous cir-
cumstances ; the Federal contribution was not conditional but
the Government indicated a hope that the Provincial Govern-
ments would contribute another third and several Provinces
did accept the proposal. By Mch. 31, 1921, $343,036 had been
distributed. Meanwhile, the Department was (1) pursuing
active enquiries into the question of unemployment insurance
and old-age pensions ; (2) administering the Industrial Disputes
Investigation Act with 37 Conciliation Boards established dur-
ing the year; (3) administering the Conciliation and Labour
Act, the Fair Wages Resolution, the Employment Offices Co-
ordination Act, and the Technical Education Act; (4) publish-
ing the Labour Gazette, a valuable monthly periodical, an elabor-
ate annual Report on Labour Organizations in Canada, and one
on Labour Legislation; (5) participating, through the Minister,
in the Governing Body of the International Labour Conference
constituted under the Versailles Treaty.
Early in 192-1 the Department published a Report on the
operation of the Canadian, British and American Joint Councils
of Industry. In Canada the number of employees coming under
these Councils, or Committees, was 145,000 on July 1st, 1920,
The objects aimed at, as reported to the Department, were,
generally speaking, as follows: (1) To provide means by which
employees could crystallize their thoughts and present their
views to the management with respect to wages and working
conditions, and to provide the Management with a means by
which it could better know the preferences and appreciate the
points of view of the workers; (2) to provide means for ex-
changing ideas and suggestions and to develop further a spirit
of co-operation. Some of these bodies were charged with the
administration of trust funds and sickness benefits ; others with
questions of policy relating to wages, hours, employment, work-
ing conditions, work practice, safety, sanitation and health.
Amongst the industries and interests concerned were the fol-
lowing :
Abattoirs
Agricultural Implements
Automobiles
Bridge and Structural
Iron
Brush Manufacturing
Building and Construc-
tion
Civil Service of Saskat-
chewan
Clothing
Engineering
Oil
Packing
Railways
Rubber
Telephones
Woollen Goods
The case of Labour was variously placed before the Govern-
ment during the year. On Jan. 3rd Tom Moore and P. M.
Draper, representing the Trades and Labour Congress and, it
was claimed, 200,000 workers organized into 2,000 local unions,
waited upon the Tariff Commission at Ottawa — including Sir
Henry Drayton and Hon. G. D. Robertson, Minister of Labour —
and presented an elaborate statement declaring (1) that the
organized workers of Canada believed in the utilization of nat-
ural resources and their conversion from the raw state to the
SENATOR ROBERTSON AND THE LABOUR DEPARTMENT 371
final manufactured one, within the boundaries of Canada ; that
(2) they believed the creation of an industry called for invest-
ment not only of the shareholders' money to build and equip
the factory but, also, by the workers themselves, in transport-
ing their household effects and homes to a close proximity to
the industry or, in many cases, investing their all in a plot of
land or a house, with the expectation of securing steady employ-
ment; that (3) Canada was placed in the centre of competition
with the United States and its huge developed industries turn-
ing out products in the mass and with a great home market
fully protected, while, to the East, there was Great Britain, the
workshop of the world, with a century of industrial development
behind her. Their conclusions were specified as follows :
1. Industries enjoying Protection should be compelled to absorb all
available labour in Canada before employing or recruiting employees
from other countries, and the Immigration and Alien Labour laws be
amended accordingly.
2. The Labour Department should have power of investigation and
control over the conditions of employment of workers in protected in-
dustries.
3. Protection should never be so high as to create a monopoly and
remove all incentive for initiative and improvement on the part of the
management.
4. The Government should have full control over the capitalization
of industries under Protection, and thus prevent watering of stocks and
cutting of melons.
5. Employers engaged in an industry generally needing Protection,
but who have themselves reached a stage of development where they no
longer need it and desire to be relieved of the above regulations, should
be enabled to do so by the payment of an Excise Duty on their products
equal to the amount they would have benefitted by the Tariff.
A controversy developed at this time between the Dominion
Government and the Trades and Labour Congress as to rates of
wages payable at the Dominion Ship-building Yards in Toronto.
Mr. Meighen, in a letter dated Jan. 18, stated that the tenders
received by the Department of Marine for the completion of
two ships in these yards had made it necessary to protect the
public interest by fixing the rate of wages to be paid and a scale,
"quite above the average" of that paid in other yards, was fixed.
This was regarded by the Labour organizations as establishing
a minimum wage which, also, was declared to be under .the cur-
rent local rates. This the Premier denied to be a fact and, on
Jan. 22, repeated a statement that : "If the workmen concerned,
in Toronto, deem the carrying on of the work at prices now fixed
is prejudicial to their interests, the work will be closed down
until 1921 scales have been fixed and then the Government
would adopt the new scale, whatever it might be." Mr. Moore,
as President of the Congress, replied on the 24th denying that
prevailing rates were lower than in 1920 and declaring the de-
cision unjust and arbitrary ; the men remained on strike.
On Feb. 8 Tom Moore, President of the Trades and Labour
Congress, presented the Government with a series of requests
which included: (1) An eight-hour day and (2) unemployment
372 THE CANADIAN ANNUAL REVIEW
insurance based on the creation of a Federal Fund from which
payments would be made to unemployed and under-employed
persons — the Fund to be raised by assessment on the payrolls
of undertakings where the workers were covered by such In-
surance ; (3) repeal of the Act under which British-born Cana-
dians could be deported while European nationals were relieved
from such action ; (4) establishment of a Central Empire Immi-
gration Board which would prevent misrepresentation by book-
ing agents, and by other interested parties in Great Britain, as
to conditions and opportunities in Canada; (5) abolition of the
right to recruit labour abroad and limitation of Oriental immi-
gration to one per 1,000 of the population; (6) recognition of
Collective bargaining and representation of workers on the Na-
tional Railways Board; (7) establishment of national and de-
partmental councils, after the Whitley plan, in the Civil Service ;
(8) repeal of Criminal Code Sections dealing with sedition, sedi-
tious intention, seditious libel and conspiracy, on the ground
that other sections of the Code provided adequate protection;
(9) repeal of the clause of the Franchise Act prohibiting con-
tributions from trade unions to Election campaign funds.
Other proposals were the making of Federal election day a
public holiday, holding Elections under Proportional representa-
tion, legislation to encourage co-operative wholesale societies,
public ownership of unappropriated coal and oil fields, registra-
tion of union labels, and decreased military and naval expendi-
ture. These requests were submitted to the Cabinet on Feb. 19.
The only new legislation promised was an amendment to the
Immigration Act providing that accredited officers of Trades
Unions should not be included as to money regulations in the
Immigration class ; a Conference on unemployment insurance
was suggested and arranged ; an appointment on the re-organiz-
ed National Railway Board was promised.
Senator Robertson during this period faced a serious con-
troversy over the question of religion' in Labour organizations.
On Mch. 23 a Delegation from the National Catholic Labour
Unions of Quebec Province, representing over 40,000 members
and lead by Abbe Fortin of Montreal, waited upon the Minister
of Labour and asked for representation at the coming Building
Trades Conference in Ottawa. The Chairman of the deputation
charged the Department with recognizing only the International
trade unions and urged that an equal consideration be given
his organization; he contended that the Labour section of the
Versailles Peace Treaty made provision for equality in treat-
ment of Labour organizations. The more general requests were
that Federal aid be given to the Shipbuilding industry and repre-
sentation on all Industrial Commissions of enquiry ; that all offi-
cial documents used in Quebec be printed in both languages ;
that Proportional Representation be established in all elections
and a Commission appointed to study the question and submit
a Report; that all undue war profits be confiscated and an
SENATOR ROBERTSON AND THE LABOUR DEPARTMENT 373
amendment to the Housing Act passed whereby money would
be loaned at 3 per cent, to individuals instead of the current
rate of 5 per cent."
The Minister asserted that the Building Trades Conference
had been organized by members of the International unions
and of the Builders and he could not dictate as to inclusion of a
third organization. He explained that the provision in the Peace
Treaty was that each country should recognize the Associations
of employers and labour which gave each class the greatest rep-
resentation. In Canada such organizations were, respectively,
the Canadian Manufacturers' Association and the Dominion
Trades and Labour Congress. Mr. Robertson was further re-
ported as saying that : "If it once gets in the mind of the people
that in your Province for a man to get along in his work he must
accept a certain religious guidance, it will not be conducive to
the improvement of relations between your Province and other
parts of the Dominion."
The Montreal Gazette (Mch. 24) denounced the Minister and
his reply as unduly favouring International Unionism, and Mr.
Robertson replied at length in the issue of Mch 31. He defend-
ed the general status and operations of the Trades and Labour
Congress of Canada and its affiliation with the American body;
stated that the last meeting of the Congress at Hamilton had
delegates representing 88,949 organized workers and members
in Quebec Province ; quoted the platform of the National Cath-
olic Union to prove its religious affiliations and claimed that
"the purpose is Church control of an organization of industrial
workers" with no Protestant eligible for membership. The
Gazette responded at length and asked if the National Catholic
Unions had not the right to be Catholic, the right to be organ-
ized, the right to be represented in national meetings with other
unions ; whether even clerical control was not better than inter-
national control by foreign office-holders ! President Moore
and other officials of the Congress eulogized Senator Robertson
for his refusal, as Mr. Moore put it on Apr. 2nd, to "mix up re-
ligion with the Labour movement."
In the Commons on Apr. 6 Ernest Lapointe brought up the
subject, reviewed the reported proceedings of Mch. 23 and pre-
sented an elaborate argument for the rights of Quebec Provin-
cial unions : "When reference is made, in the statutes to Labour
Union, it is never said that it must be an International Union.
It is not specified what sort of a union it has to be in order to
get recognition from the Government or the Department of
Labour." He claimed that the Minister of Labour was quite
entitled to personally prefer the International Union, but acting
as the head of the Department of Labour, he had no right to
discriminate against the organization in Quebec or in any
other section of the country. Mr. Meighen followed in a care-
ful and able defence of his Minister of Labour. He submitted
a preliminary review of the two classes of Unions in Canada —
374 THE CANADIAN ANNUAL REVIEW
one with no .distinction of race, religion, or politics, and with
close international relations ; the other with obvious religious
and racial affiliations and vigorous opposition to international-
ism.
He eulogized Senator Robertson as actuated by a sincere
desire to advance the interests of all labour and sympathies
strongly with the workers of the country — tempered by a spirit
of fairness and a loftiness of view ; he stated that the Associa-
tion of Builders and Contractors and the Association of Building
Trades had asked the Minister to preside at their coming Con-
vention and an officer of this Department to send invitations to
their nominees and that the Minister had no authority to invite
any other organization whatever. He declared that denial of
Government recognition to either Labour organization was an
impossibility and a position not taken by Mr. Robertson or his
Department. Other speakers followed and H. E. Lavigueur of
Quebec City denounced the Minister's action as "an insult to our
race and religion." The debate closed after a few words from
the Minister of Justice.
Meanwhile, on Feb. 21-22, a Conference on Industrial Rela-
tions had been held at Ottawa. It was "called by the Minister
of Labour and was attended by representatives of a number of
the larger employing Companies in Canada which had estab-
lished Joint Councils with their employees; the spokesmen for
the respective employers were for the most part Company offi-
cers in charge of industrial relations. The latter included
F. L. Riggs, Gutta-Percha & Rubber, Ltd., Toronto; P. F. Sin-
clair, Imperial Oil, Ltd., Toronto; F. J. Gernandt, International
Harvester Co., of Hamilton; H. H. Stedman, Swift-Canadian
Co., Toronto ; R. M. Olzendam, Spanish River Pulp and Paper
Mills, Ltd., Sault Ste. Marie ; George Valentine, Massey-Harris
Co., Ltd., Toronto; W. M. Gray, Gray-Dort Motors, Ltd., Chat-
ham ; J. H. Frye, Canadian Consolidated Rubber Co., Ltd., Mont-
real ; J. D. Jones, Algoma Steel Corporation, Sault Ste. Marie ;
W. H. Winter, Bell Telephone Co., Montreal. There were a
number of others, representing different elements in this work
with, of course, the Deputy-Minister of Labour, F. D. Acland,
and his Assistant, Gerald H. Brown, who acted as Chairman in
the absence of the Minister.
In his address Mr. Robertson referred to the Government's
labour policy, its Royal Commission of 1919 and the work of his
Department ; mentioned the fact that A. H. Young, in charge of
Industrial matters for the International Harvester Co. of
Chicago, and C. S. Ching of the U. S. Rubber Co., New York,
were present; reviewed briefly the present-day menace of So-
cialism and the use of the Third International, which he de-
scribed as an organization which proposed by force of arms to
destroy capital : "They think that before that can be done the
International trade union movement throughout the world,
which has for its object co-operation between the workman and
SENATOR ROBERTSON AND THE LABOUR DEPARTMENT 375
the employer, must be destroyed." Addresses followed from
Mr. Young, Mr. Ching, W. M. Gray, P. F. Sinclair and many
others ; they described Labour relations, experiences, develop-
ment, operation of the Councils, etc., as they had seen them in
various places and amid varied conditions. There were no Re-
solutions and the Minister, in concluding the Sessions, was ex-
plicit: "If the Industrial Council plan had not been brought
into existence, I am very sure that, to-day, our industrial dif-
ficulties would be much greater than they are, and that because
of it, thousands of men in this country and hundreds of thou-
sands of men in other countries have had their viewpoints alter-
ed and have seen and realized the difficulties with which their
employers have to contend."
On May 3rd the much-discussed Convention of the Building
and Construction Industries — including employers and em-
ployees— was opened at Ottawa with Hon. G. D. Robertson in
the chair, and E. McG. Quirk as Vice-Chairman. The Minister
of Labour spoke in terms of moderation and of regard for the
duties of employers and needs of the employees ; he referred
to the current dumping of cheap German goods in Canada. Tom
Moore, of the Labour Congress, urged extension of the prin-
ciple of arbitration ; like the Minister, he advocated conciliation
and co-operation. The ensuing discussions turned upon the em-
ployers' demand for a Dominion-wide reduction of wages as
essential to the continuance and development of the Building
industry in times of deflation, and the employees' refusal to
admit the necessity. The former represented their views in a
Resolution urging an all-round national reduction of wages from
10 to 25 per cent. They pointed to the fact that in March, 1921,
contracts let for building totalled only $36,800,000 in Canada, as
against $55,700,000 in the previous year ; that construction con-
tracts all over Canada in the three months of 1921 were 35 per
cent, lower than in the same three months of 1920; that unem-
ployment in the building trades was practically 32 per cent, in
Canada and that material costs had been reduced 20 per cent. ;
that in 1920 there were 68,833 marriages in Canada with 11,200
homes provided for these new couples. Labour's Resolution
stated that "in the matter of wages and their adjustment there
had never been any national standard established and that any
adjustment actually necessary should be arrived at by special
agreement in the localities concerned." The employers claimed
that labour was 35 per cent, of the total cost of construction and
that in Detroit there had been, recently, a reduction of 25 per
cent, in wages. After a prolonged debate and, for a time, dead-
lock in decision, the following compromise was adopted unani-
mously :
In our best judgment, a moderate and reasonable adjustment of
wages should be agreed upon without further delay in large centres
where an abnormally high peak has been reached and where no settle-
ment has yet been accepted, and that such agreement should be fixed
376 THE CANADIAN ANNUAL REVIEW
upon for a period of 12 months, and, further, that we strongly urge the
immediate resumption of negotiations with a view to mutual agreement
and that failing mutual agreement, voluntary arbitration be entered into.
Following- this the Minister on July 13th addressed a
Memorandum to the various Provincial Governments urging a
survey and investigation of labour conditions to be succeeded
by a Conference with the Federal Government and preparation
to meet any emergency which continued deflation might de-
velop ; on Aug. 19th Mr. Robertson stated that the past year's
policy as to municipal relief for unemployment was still in force
and "any municipality which finds it necessary to grant relief
will be refunded one-third of its outlay by the Government."
On Oct. 5th the Minister issued an elaborate statement as to
existing conditions and stated that, up to date, $600,000 had
been expended under the above plan, 12,165 unemployed and
disabled soldiers aided at a further cost of $500,000; since July
unemployment had steadily diminished though there would be
much in the coming winter. He outlined, in specific terms, cer-
tain arrangements for co-operation with municipal and pro-
vincial authorities based largely upon the policy of 1920-21. A
word may be added as to the Conciliation work of the Depart-
ment. In the fiscal year 1920-21 there were 66 applications
under the Industrial Disputes Act and 38 Boards granted ; since
1907-08 there had been 509 such applications and 371 Boards;
in each year, in the current fiscal year, and later, there was much
work done by the Minister and his officials in conciliation and
settlement of strikes which the public knew little or nothing
about. Some of the most useful work was done in this way.
PROBLEMS OF THE CANADIAN NATIONAL RAILWAYS 393
During the General Elections there was a touch of politics
when the reports were issued as to considerable gains in the
August and September earnings. Mr. Drury, the Ontario
Premier, remarked at Napanee (The Globe report of Nov. 9)
that "Canadian railways have a trick of piling up a surplus just
prior to elections, x x x This is a matter which we may
well question." Mr. Hanna resented this allegation and on Nov.
11 described it as "a direct reflection on the honesty of the man-
agement," and declared that the statements of earnings referred
to were based on facts only and were correct. The inference as
to Government or political control was, he said, unfair and was
not a fact. Following the close of the contest he stated at Kit-
chener (Dec. 15) that during the Elections "there was not a
single attempt on the part of any follower of the political parties
to prevail upon the Directors to use their influence in any way
to promote the success of either party at the polls."
Incidents of the year included the issue by the C. N. R.
management of a series of careful and valuable articles upon
all phases of Railway classification, traffic and operation which
could be of interest to the public ; the adoption on certain Branch
lines, with light traffic, of a sort of motor-driven bus in place of
the heavy and expensive trains of the usual equipment ; con-
tinued pressure from the Board of Trade, City Council and Har-
bour Commission of the City of Quebec upon the Government
to complete terminal works of the National Railways in Quebec,
St. John and Halifax so that the 80 per cent, of Western grains
still exported through United States ports, could be sent from
Quebec in the summer and Halifax and St. John in the winter;
the completion for the C.N.R., on June 1st, of five all-steel din-
ing cars and assignment to Western lines for use as part of the
Continental Limited; the sale in July by the Canadian Govern-
ment of $25,000,000 worth of 25-year, 6l/2% sinking fund, gold
debentures, of the Canadian Northern Railway to a New York
syndicate; the consolidation (effective on Sept. 1st) of the
Canadian Express Co. with the Canadian National Express Co.
of the National Railways, with headquarters in Montreal, and
John Pullen as President and W. C. Muir as General-Manager;
the sale in New York (Sept. 15) of a $25,000,000 issue of Cana-
dian National-G. T. R., 15-year, 6 per cent, sinking fund, gold
debenture bonds ; the consolidation in London, under William
Phillips as European Manager, of the Canadian Northern and
Canadian Government Railways with, also, the European offices
of the above Express Companies ; the appointment of George D.
Perry as Vice-President and General Manager of the Great
North-Western Telegraph Co. (of which Mr. Hanna was Presi-
dent) with headquarters in Toronto.
The Intercolonial and its freight rates came in for much
criticism during the year. A very large and important Delega-
tion waited upon the Government on June 1st, representing all
the Maritime Provinces, and united in presenting a most dismal
394 THE CANADIAN ANNUAL REVIEW
picture of conditions with 80 per cent, of the grain of Canada
being shipped through American ports ; with not a pound of
Nova Scotia coal being moved over the railways of the country
west of the New Brunswick border; with the products of the
farms of P. E. Island rotting in the cellars of the farmers of that
Province ; with the pulp and lumber mills of New Brunswick
and Nova Scotia either closing or threatening to close ; with the
general development and progress of the Maritime Provinces
being strangled and industries dwindling — all, it was claimed,
because of excessive freight rates. There were 50 influential
men in attendance led by E. M. Macdonald, CX-M.P., of Pictou,
H. J. Logan, K.C., ex-M.p., of Amherst, W. S. Fisher of St. John,
President of the Canadian Manufacturers' Association, Hon.
R. E. Finn of the N. S. Government, Ivan Rand, K.C., for that of
New Brunswick, and Hon. J. H. Bell, Premier of P. E. Island;
they put up a strong case for preferred rates as before and dur-
ing the War, and strongly urged that the I. C. R. should remain
under the Railway Department and not be placed under the
jurisdiction of the Commission.
Mr. McCurdy, Minister of Public Works, speaking at Truro,
N. S. (Sept. 24) dissented strongly from this view as a retro-
gressive and very doubtful policy: "Surely it must be obvious
that the future of the Intercolonial is bound up inseparably with
the rest of the Government-owned railways for the reason that
it is complementary to them as they are complementary to it.
The advantages of combined operation are not confined to the
employees and patrons of the road. Is it not obvious that the
activities of a great transportation system covering land and
sea must inevitably produce better results than could be achieved
by a comparatively short local line?" It might, however, be
possible to establish an Eastern Unit embracing the I. C. R. with
headquarters at a local point. On Oct. 11, during the Elections,
Mr. Baxter, Minister of Customs, suggested Moncton as a de-
sirable centre.
The Hudson Bay Railway project marked time in 1921. In
the Commons on Mch. 16, J. A. Campbell (Prog.) moved a Reso-
lution pointing out that construction was commenced in 1916
and carried on to the end of 1918; it should be resumed "as early
this year as possible and the project completed without further
delay." It had been promised to the West by leaders of both old
Parties and was in the Dominion platform of all the Parties and
of those in the Western Provinces. Mr. Reid, Minister of Rail-
ways, stated in reply that the project was not abandoned; it was
simply delayed until financial conditions permitted resumption
of work ; 310 miles had been completed but an attempt at operat-
ing this part of the line had not given enough traffic to pay
wages of the train crews ; other branch railways associated with
Western settlement required consideration first. Mr. Crerar, in
speaking, supported the Railway as a matter of future construc-
tion, but felt that a mistake had been made in choosing Port
PROBLEMS OF THE CANADIAN NATIONAL RAILWAYS 395
Nelson as a terminus and that financial conditions did not war-
rant present action; an amendment moved by Thomas Hay (Sel-
kirk) was carried favouring construction as soon as financial
conditions would warrant. A later reply to questions (Apr. 27)
showed that a total of $20,590,443 had been expended on this
Railway and its proposed Port Nelson terminals.
The place of the Grand Trunk Pacific at this time was with
the National Railways and its operating deficit in 1920 was
$10,134,513. The outstanding feature of its operations in 1921
was the large increase in freight traffic of over 41 per cent. ; its
revenues increased 15 per cent., and, as expenses were reduced 16
per cent., the operating loss was reduced by over $6,000,000.
Transportation expenses increased 19 per cent, with increased
business, but maintenance of way and structure expenses were
reduced 38 per cent, and maintenance of equipment 30 per cent.
Sir Joseph Flavelle's Proposed Policy. As an authority on
finance and industry, and as the new Chairman of the Direct-
ors of the Grand Trunk, the open letter to the Prime Minister
(Mr. Meighen) by Sir Joseph Flavelle, Bart., on Aug. 12,
aroused much interest. He was explicit in a preliminary state-
ment that: "There would be no acute Railway problem in
Canada to-day if, in 1903, the Grand Trunk and Canadian North-
ern Companies had been told they must come together and con-
stitute a second transcontinental line." Had this been done "a
powerful corporation, with a serviceable railway from ocean to
ocean, owned and operated by private capital would, with the In-
tercolonial and C. P. R., have given the needed transportation
facilities for the present, and reasonable future requirements of
Canada." Parliament decided otherwise and the National
Transcontinental and G. T. P. were built and the Canadian
Northern completed ; crippling losses followed in over-railroaded
territories ; the effect was to make the country responsible for
the operation of 22,000 miles of railway with, broadly speaking,
the 1,800 miles of Transcontinental road, and 1,800 miles of
Grand Trunk Pacific, and probably about 1,000 miles of the
Canadian Northern road east of Port Arthur, "not actually need-
ed for the business of the country." Sir Joseph pointed out that
the operation charge ratio of the Canadian Northern in 1920
was 12525, the Intercolonial and Transcontinental, 123-46, the
G. T. P. 17033, the G. T. R. 95-94. The C. P. R. figures were
83-76. As to the future and including, with Fixed charges on
National lines, the taxes upon railway properties and rental upon
leased roads, he found this result :
Annual interest charges upon Securities in the hands of the public $32,529,471
Anm.al interest upon issue to meet Railway appropriations, authorized by Parlia-
ment at its last Session 7,000,000
Interest upon capital improvements to be made during the next five to seven years 10,000,000
Interest upon Government loans of $353,000.000 16,000,000
Taxes and rental for leased lines 4,459,510
Total . $69,988,981
396 THE CANADIAN ANNUAL REVIEW
As an offset to these yearly charges, there was about $4,-
000,000 of annual earnings from investments which would leave
Fixed charges of $66,000,000 a year for the National system as
against $15,900,000 for the C. P. R.—plus, in the latter case, the
voluntary payment of $21,000,000 in dividends. He then made
the proposal that a new National Railway Company be formed
with a nominal capital of 5,000,000 common shares and 2,500,000,
6% preference shares — each share with a par value of $10,000:
"The total authorized capital would thus be $750,000,000 and the
Government should take common shares at par in payment of
its existing advances to the various Systems. These, as of Dec.
31, 1920, were $320,000,000 of loans and $33,000,000 of Grand
Trunk Pacific debentures." As to the rest:
When the issues of National Railway securities, incident to the im-
mediate plans of the Minister of Finance are completed, I would suggest
that any expenditure which can or should properly be charged to capital,
shall be provided by the Government from year to year, and be capitaliz-
ed by the issue to the Government of a Preference stock at par in re-
spect to their capital advances. Any annual deficit, on the other hand,
which has to be met by the Government through the failure of operating
revenue to cover operating expenses, plus fixed charges due to the pub-
lic, should be met by an issue to the Government of common stock at
par. Thus, the Company, at the commencement, would have the whole
of its preference stock unissued, i.e., $250,000,000, and also $172,000,000 of
common stock unissued. The preference stock would only be issued
against capital expenditure advanced by the Government. The balance
of common stock would be issued to capitalize the operating deficits
and fixed charges over the next few years.
This Report, as it was termed in the press, was widely and
variously dealt with — especially a concluding appeal against
politics and undue pessimism and in favour of a free hand for
the management and for resourceful leadership. The Toronto
Globe (Aug. 29) laid special stress upon Sir Joseph's advice to
the C. P. R. and the C. N. R. : "If good sense prevails the Execu-
tive officers of the two Systems will plan together to meet the
transportation requirements of the country." Toward the close
of the year Sir Joseph addressed the Toronto Board of Trade
(Oct. 4) and declared that "no super-man can give an organiza-
tion and no super-company can supply an organization that will
save the situation for some years to come from an important
cash loss." He stated that Sir Wilfrid Laurier had brought the
late C. M. Hays and Sir William Mackenzie together at the in-
ception of the Transcontinental and G. T. P. arrangements, but
that they could not agree ; he pronouuced strongly against the
Beck Radial policy and approved the attitude in Ontario of Mr.
Premier Drury. As to the Railway problem, in general, it might
be settled in 20 years and a great property realized, but only
after some hundreds of millions had been lost: "The losses
can be met in two ways — by taxation, or by earnings. You can
have earnings only if you have business, and business well done ;
the one and only remedy for this situation is more people,
greater production, greater tonnage, more passengers."
THE GRAND TRUNK RAILWAY AND THE GOVERNMENT 397
The Grand
Trunk and
the Govern-
ment; Ac-
1 he
in 1921.
The G. T. R. in 1920 and 1921 was in a difficult
and unpleasant position. It was under Government
control but not management ; it was still, technical-
\yf the property of its Shareholders but, practically,
- under conditions of Parliamentary ownership ; it
W*S in the HandS °f the Government yet the G°V-
ernment was not absolutely and entirely respons-
...(..,, • < i A 1 • • <
l"*e *or lts finances until the Arbitration Award
arranged for in the 1920 Agreement had been made
and accepted. Following this 1920 Agreement for the acquisi-
tion of the Railway by the Government — ratified and formulated
in an Act of Parliament which received the Royal Assent on
May 11, 1920 — a Committee of Joint Management had been ap-
pointed by the Government (May 21, 1920) to control and co-
ordinate the operation of the G. T. R. and the Canadian National
Lines pending the result of the Arbitration as to values of the
Preference and Common stocks of the Railway. The financial
situation in that year showed the Operating revenues as the
largest in the history of the Company with an increase of $12,-
698,289 or 1847 per cent, over 1919; the Operating expenses
showed an increase of $15,839,384 or 2623 per cent, over 1919.
The Pay-roll or wage total of 1919 had been $42,617,415 or an
increase of 41-34 per cent, over 1918; that of 1920 was $53,375,-
736 or an increase of 77 02 per cent, over 1918 — with only 6,200
more employees. Hence, in part, the results shown in the fol-
lowing Income account :
Particulars Year 1920 Year 1919
$68,744,358.54
60,374,431.53
8,369,927.01
1,170,850.31
7,199,076.70
6,146,800.21
13,345,876.91
12,982,607.01
Net Income transferred to Profit and Ixws .............. (Deficit) 4,599,104.53* (Surplus) 363,269.90
The Funded Debt of the Company on Dec. 31, 1920, was
$243,144,568 and the accrued Interest payable $10,054,582; the
expenditures on Capital account in 1920 were $3,994,345 and the
total amount to date $440,697,914. Howard G. Kelley was at
this time President of the Company, with headquarters at Mont-
real ; Sir Alfred W. Smithers, M.P., was Chairman of the Board
of Directors in London ; associated with them was the Commit-
tee of Joint Management with two representatives each from
the Grand Trunk and the Canadian National and Mr. Kelley as
5th member and Chairman. On May 26, 1921, under agreement
between the Government and the G. T. R., a new Board of Di-
rectors was elected in London with Sir J. W. Flavelle, Bart.
(Chairman), J. Narcisse Dupuis, Montreal; E. L. Newcombe,
K.C., Deputy-Minister of Justice, Ottawa; and Alfred J. Mit-
Operating Revenues $81,442,647.32
Operating Expenses 76,213,815 . 16
Net Operating Revenue 5,228,832. 16
Railway Taxes and uncollectible Railway Revenue 1,303,067.25
Railway Operating Income
Non-Operating Income
3,925,764.91
7.706,272.77
Gross Income „ 1 1,632,037 .68
Deductions from Gross Income 16,231,142.21
*Note.— Asterisk indicates loss.
398
THE CANADIAN ANNUAL REVIEW
chell, Vice-President of the C. N. R., Toronto, as members. Mr.
Kelley remained on the Board and as President of the Company.
During 1921 the co-ordination of operation between the Systems
proceeded steadily with distinct economy in expenditure ; mean-
while, varied controversies had occurred between the G. T. R.
and the Government ; the Arbitration proceedings, also, were in
progress with one long delay caused by Railway and Govern-
ment differences.
There was a great deal of Government financing necessary
in this connection during the year. Early in January $12,000,-
000 of 15-year, 6l/2% equipment trust gold certificates were sold
in New York by Dillon, Read & Co. ; they were authorized but
not guaranteed by the Government. On Apr. 19 the Prime Min-
ister in the Commons put the current situation as follows : "The
total amounts advanced by way of assistance to the Grand Trunk
and the G. T. P. Companies, inclusive of interest unpaid, amounts
in the case of the G. T. R. to approximately $77,297,000, of which
all but $15,000,000 is due ; and in the case of the G. T. P. to $62,-
400,000, of which the entire amount is due. The Government
has, also, guaranteed obligations of the Grand Trunk to the ex-
tent of $25,000,000." On May 30, Dr. Reid, Minister of Railways,
presented Estimates authorizing a Loan of $89,687,633 to the
Grand Trunk System and covering operating deficits, acquisi-
tion of property, materials and supplies, interest on notes, securi-
ties or obligations, the principal and interest of maturing or
matured loans, secured or unsecured, construction and better-
ments, guarantees by the G. T. P. Company for the period of
Jan. 1st, 1921, to Mch. 31, 1922.
It may be added that during 1921 Freight traffic on the
G. T. R. showed a decrease of 19 per cent, and passenger traffic
4 per cent. ; the increased rates offset these losses somewhat, so
that revenues decreased only 6 per cent. Maintenance of way
and structure expenses increased 7 per cent., while maintenance
of equipment decreased 15 per cent. Total expenses decreased
over 6 per cent, making the net revenue slightly greater than for
1920. It may also be stated that the Grand Trunk as a System
extended from Portland, Me., to Chicago, 111., with an operated
mileage of 4,776; of this 3,612 made up the Canadian lines with
the balance in the United States. The Central Vermont Rail-
way System was also controlled by the G.T.R. — 613 miles ; the
net loss to the Government on operation of all these lines in 1921
was $15,672,299 as against $6,527,243 in 1920* All outstanding
obligations on Dec. 31, 1921, were $428,285,616.
The Grand Trunk Arbitration Award. This Board was ap-
pointed under Agreement and by 1920 legislation, regarding Gov-
ernment acquisition of the Railway, to decide the amount, if any,
to be paid by the Government for the Preference and Common
*Note.— Address in Commons by Hon. W. C. Kennedy, Minister of Railways, Apr.
11, 1922.
THE GRAND TRUNK RAILWAY AND THE GOVERNMENT 399
Stock — the limit to any possible award being put at $64,166,666.
Under the Agreement and Act an unanimous Award would be
final but, if not so, an appeal would lie to the Supreme Court or
the Judicial Committee ; as to time, the Award was to be made
within 9 months from the appointment of the Arbitrators (July
9, 1920) or within such further time as the Government might
approve. The Board was composed of Sir Walter Cassels of the
Exchequer Court — Chairman by legislation and agreement of
both sides ; Rt. Hon. Sir Thomas White, K.C., by and on behalf
of the Government (July 9) ; Hon. William Howard Taft, ex-
President of the United States, by and on behalf of the Grand
Trunk.
The organization meeting took place at Montreal on Sept.
1st, 1920, and a physical inspection of the property followed;
there were delays in preparing the Grand Trunk case and on
Jan. 13, 1921, the Prime Minister informed the Company's
Counsel that there would be no extension of Arbitration pro-
ceedings beyond Apr. 9th; the Arbitration began on Feb. 1st and
was not concluded upon Apr. 9th. In anticipation of this eventu-
ality, Dr. Reid, Minister of Railways, for the Government, wrote
Sir Alfred Smithers, Chairman of the G. T. R., on Feb. 7, form-
ally reminding the Company of the provisions of the Agreement
and pointing out that in the event of the Award not being ready
within the period agreed upon, it would be necessary for the
Government to consider whether it would exercise its powers
to extend the time, and, if so, upon what terms or conditions.
The system of joint management was stated by the Minister to
be "embarrassing, inconvenient and expensive," though justified
as a temporary expedient, and as providing for the possession
which the Company should have during the preparatory period
of its case and, at the same time, by means of a Committee of
Management, for such a measure of unification with the Gov-
ernment Railway System as might be possible. There appeared
to be no reason for the continuation of this undesirable system
of control beyond Apr. 9, the day on or before which it was to
cease.
Sir Alfred Smithers, for the Company, replied on Feb. 25
urging an extension of three months' time. To ask the Com-
pany to give up control before the case had been decided by the
Arbitrators was unreasonable. The Minister replied by cable,
on Mch. 19, regretting the impossibility of an extension except
upon terms of immediate transfer of management and control
of the Railway; Parliament was in session and three months'
delay would make it too late to secure requisite legislation dur-
ing the 1921 session. The reply of the Company (Mch. 22) was
to the effect that the request to hand over the Railway before
an Award was so unreasonable that the Board of Directors
could not recommend it, and, as to the immediate transfer of
stock, the Shareholders would certainly not consent to transfer
their holdings until the final Award.
400 THE CANADIAN ANNUAL REVIEW
Meanwhile, on Mch. 21, the Minister of Railways had writ-
ten to President Kelley: "The Government have come to the
conclusion to make no further advances on account of the G.T.R.
except payments, if any, for which they are obliged by law,
until we have some definite and satisfactory assurances as to
when the road is to come into our possession. In the absence
of a satisfactory arrangement of these questions, the Railway
must finance on its own responsibility from this time on." Sir
Alfred Smithers protested to the Prime Minister (Mch. 29)
that the Agreement to purchase by the Government made fur-
ther financing by the Company impossible, and if default oc-
curred in payment of obligations due Apr. 1st, (as did occur)
it would be considered in London as default of the Canadian
Government. Mr. Meighen replied (Mch. 30) that the Agree-
ment provided for the Grand Trunk doing its own financing,
but if, as the Chairman asserted, the Company could not do this
then, obviously, he should no longer insist on possession and
control. The demands of the Company, since the Arbitration
agreement was signed, for financing, had involved large amounts,
and the Prime Minister repeated the Minister of Railway's
statements.
Sir Alfred replied (Apr. 1st) that, while not relinquishing
any legal rights, he had cabled Mr. Kelley to, if possible, trans-
fer the management of the Railway. But, as to transferring
stocks, no holders would voluntarily transfer until final Award
was given. He urged the Government to finance the various
payments then due. The Prime Minister saw Mr. Kelley who
stated (Apr. 1st) that his instructions were not sufficiently
definite to enable him to conclude necessary arrangements for
transfer of management and possession. This was followed
(Apr. 2nd) by a cable from Sir Alfred Smithers to the effect
that he had just received unanimous opinions of Counsel that
under the Agreement they could not legally transfer manage-
ment under present circumstances. The Prime Minister re-
plied (Apr. 3rd) that the Government understood perfectly that
the existing Agreement did not authorize the Directors to trans-
fer their powers of management, and that a further Agreement
was required to provide for this — subject to Parliamentary
sanction. If the Board would authorize Mr. Kelley to execute
the necessary terms evidencing Company's consent, and to put
the Government into immediate possession, a Bill to confirm
would be introduced at once. Only upon these conditions would
the Government extend time or make further advances.
On Apr. 6 the Company replied, over the joint signatures of
Mr. Kelley and F. H. Phippen, K.C., denying absolutely any delay
on its part, either in the preparation or presentation of its case
before the Arbitrators, and holding it was the obvious duty of
the Government to grant the necessary extension of time with-
out seeking to alter the terms of the contract. They claimed
that, under the circumstances, there was no alternative but that
THE GRAND TRUNK RAILWAY AND THE GOVERNMENT 401
the Government should grant the necessary time and, as the
Agreement with the Government limited the powers of the
Company to finance its requirements, the Government should
protect the Company in that regard. In acknowledging this
letter, the Prime Minister stated that the position of the Gov-
ernment in relation to the matters referred to was sufficiently
set out in the antecedent correspondence. Such was the posi-
tion on Apr. 9th when the power of the Arbitrators lapsed and
proceedings ceased.
On Apr. 19 Mr. Meighen introduced a Bill in the Commons
intended to continue the Arbitration, to arrange for finally
taking possession and control of the Railway and its properties
and to receive from Parliament approval of the Government's
policy in the premises. The measure was not seriously debated,
though there was a discussion on the 2nd reading, caused by
certain questions from F. S. Cahill ; it received 3rd reading on Apr.
26, after a debate in which Government ownership of railways,
and the Government policy in this respect, came in for con-
siderable criticism, and Royal Assent on May 3rd. Based on
this legislation, a Draft Agreement, proposed by the Govern-
ment, was considered at a meeting of the Grand Trunk Share-
holders in London on May 12, when necessary authority was
given to the Directors to execute it. By Order-in-Council of
May 11, the Canadian High Commissioner in London was auth-
orized to sign on behalf of the Canadian Government and the
Agreement was executed and exchanged there on May 13. It
provided for revival of the Arbitration, for the resignation of
the G. T. R. Directors, the substitution of a Canadian Board and
removal of the Head Office from London to Canada ; it also
provided for the appointment of a Shareholders' Committee to
act in the Arbitration proceedings.
Following the resignation of the old Board of Directors on
May 26 the Government appointed the Board as already re-
corded; on May 30 the three months' extension of time for
Arbitration was granted and on June 11 a Government Order-
in-Council approved and ratified the Agreement. The appoint-
ment of Sir J. W. Flavelle as Chairman aroused much comment
with business and financial interests very favourable and popular
opinion still influenced by the prejudices of the war-period and
the bitter attacks of that time regarding his association with the
William Davies' interests. In the Commons on May 30 Lucien
Cannon vigorously attacked Sir Joseph, as did F. S. Cahill on
June 1st. Hon. Dr. Reid replied declaring such references un-
fair and unjust : "There is not a man in the country with a
better reputation or higher standing than Sir Joseph Flavelle."
In the Senate (June 2nd) Hon. W. C. Edwards warmly defend-
ed the appointment, eulogized the admittedly great war services
of Sir Joseph, and congratulated the country upon the appoint-
ment.
The Arbitration began again on June 1st and concluded on
July 8, with the Award issued on Sept. 7th. During its sittings
14
402 THE CANADIAN ANNUAL REVIEW
a great variety of evidence was submitted to the Board and a
good deal was excluded; the Grand Trunk Counsel included
W. H. Biggar, K.C., Eugene Lafleur, K.C., A. W. Atwater, K.C.,
and F. H. Phippen, K.C. The Federal Government was repre-
sented by W. N. Tilley, K.C., Pierce Butler, St. Paul, Minn., H. A.
Lovett, K.C., and Hector Mclnnes, K.C., Halifax, and E. L. New-
combe, K.C., of Ottawa. Howard G. Kelley, President, (Feb.
1st) gave a history of the Railway, its pioneer services to Canada
and its expansion into the United States, its favourable traffic
position and ample facilities, the alleged superiority of its
motive power over the average : "I believe the Grand Trunk is
in a position to be one of the best earning railways on the con-
tinent of America in the future. It reaches every possible in-
dustrial centre within the area through which it passes and it is
so located that its train tonnages are large."
On Feb. 6 a majority of the Board (Sir W. Cassels and Sir
T. White) over-rode Mr. Taft's protests, and decided to exclude
evidence put forward on behalf of the Grand Trunk, which
showed the reproduction value of the physical assets of the
System. The position taken was that such evidence was inad-
missable in view of the scope of the enquiry, which was to esti-
mate the actual and prospective earnings of the System in
order to arrive at a valuation of Grand Trunk stocks. Sir
Walter Cassels' opinion was that the only method of arriving
at the value of the Stock was "to ascertain the earnings of the
Railway in the past, properly applicable to dividends, and the
potentialities of the future"; on Feb. 21 Mr. Lafleur for the
Grand Trunk made a long argument in favour of including evi-
dence regarding the physical values and replacement costs.
Frank Scott, Vice-President of the Railway, admitted, in his
evidence, that without financial assistance from somewhere, the
Company could not have carried on financial operations after
Mch. 10, 1919. There was much other evidence and then, on
June 7th, after resumption of the case, the Government's side
occupied three weeks, followed by Counsel, who spoke at length ;
after 71 sessions the hearings came to an end on July 8.
The Award, when issued on Sept. 7th, created wide interest
and some controversy. Sir W. Cassels and Sir T. White signed
a majority Report, Mr. Taft a minority one. The former prac-
tically decided that the Common and Preference stocks of the
Grand Trunk Railway, which had a par value of £37,075,492,
were worth nothing and the decision was based, in the main,
upon the view: (1) That in the existing condition of the Com-
pany the stock had no existing value ; (2) that the Liabilities of
the road were far in excess of the Assets, and that as its earn-
ing power was unlikely, having regard to all the conditions, to
place it upon a sound financial basis for many years, the stock
had no potential value. Judge Cassels, in an elaborate state-
ment of reasons, based his decision very largely upon the evi-
dence of Mr. Chamberlain, then President of the G. T. R., before
THE GRAND TRUNK RAILWAY AND THE GOVERNMENT 403
the Drayton-Acworth Commission of 1915 (Dec. 15) that the
Grand Trunk plus the G. T. Pacific, was practically insolvent.
Sir Thomas White, in his statement, reviewed past revenues and
deficits of the Grand Trunk — that of 1918 being the first in recent
years — with the heavy operating expenses and "hopeless bank-
ruptcy" of the G. T. P. and its deficits of $48,058,589 in 1916-20
inclusive.
There was an opening for future action in both judgments.
Judge Cassels concluded his with the statement that: "If
equitable or moral considerations are to be considered, those
who control the public funds must deal with the question." Sir
T. White, who had based his conclusions upon the combined
finances of the G. T. R. and the G. T. P., added these words at
the end: "Any question as to compassionate consideration of
the Shareholders must be for the Government and Parliament
of Canada to deal with." Mr. Taft's view was directly opposed
to that of the other Arbitrators. In his Judgment he analyzed
the history of the Railway since 1852, its pioneer importance
and the British money put into its construction and operation;
its splendid business connections and railway properties and
ownership of Steamship companies, Elevator companies, Elec-
tric lines, subordinate Railway lines, Bridge companies, Term-
inal companies, and other corporations owning Hotel properties
used in connection with the System; its expenditures from
revenue in recent years which might have been charged to
capital and thus allowed larger dividends ; its serious mistake in
sharing in the Grand Trunk Pacific policy of the Laurier Gov-
ernment; its historic attitude of freedom from Government as-
sistance until the G. T. P. and the War compelled a change. He
closely, and at length, dealt with the finances and possibilities
of the Road and estimated, under certain policies, an end to its
deficits before 1926; his conclusion as to all the Stock under im-
mediate consideration was a value of not less than $48,000,000.
The capital affected by the Award was £23,055,437 in Com-
mon Stock, £3,420,000 in 1st Preferred, £2,530,000 in 2nd Pre-
ferred, £7,168,055 in 3rd Preferred; nine-tenths of this Stock
was held in Great Britain by about 19,000 shareholders and it
all represented original cash investments. An appeal to the
Judicial Committee was at once put under way and, on Dec. 21,
the right to appeal was granted. There was, of course, a great
and complete decline in the values of these stocks in London
and a volume of protests came from the British shareholders
and press. The refusal of the Canadian Government to protect
payments of interest when due on Apr. 1st, pending the complete
taking over of control, had aroused vigorous comment — The
Times declaring that it caused painful surprise in financial cir-
cles, and bewilderment concerning the Agreement between the
Government and the Company ; several Canadian financial
journals supported the protests in London and the Montreal
Journal of Commerce (Aug. 26) declared that "the short extension
of the Arbitration was not an unreasonable request and was
404 THE CANADIAN ANNUAL REVIEW
clearly within the spirit of the Agreement"; the refusal of the
majority Arbitrators to hear evidence as to physical values was
also adversely criticized.
In his presentment of opinion to the Shareholders on May
17, Sir Alfred Smithers stated that the physical assets of the
System, without estimating anything for good-will or going-
concern value, and without including the properties of the Grand
Trunk Pacific, or any of that Company's subsidaries — in the
judgment of their valuing Engineers, and based on 1920 prices —
amounted to considerably more than $1,000,000,000; based on
pre-war costs, with deduction of full allowance for wear, the
value of these assets, he claimed, was well over $640,000,000, or
a sum largely in excess of all the liabilities, direct and indirect,
of the entire System. The Award came, undoubtedly, as a
great blow to thousands of British holders of the Securities and
created a sensation on the Stock Exchange (Sept. 8) when the
1st Preferred shares fell from 45 to 25, the 2nd from 34 to 14^,
the 3rd from 14^4 to 8, and the Ordinary from 5}^ to 2T/s. Even
these prices were purely nominal.
The London press, in its comments, touched many points
which were not even mentioned in Canadian references. The
London Observer, for instance, dealing with Sir Thomas White's
statement that the junior Grand Trunk stock issues were value-
less because a receivership would have been certain if the Cana-
dian Government had not stepped in, asked what the junior
security holders of the Union Pacific, the Aitcheson and other
American railways that were in the hands of receivers for 30
years, would say to that. They had to submit to heavy assess-
ments but they saved their properties, and the Grand Trunk
shareholders would, no doubt, have done the same. The Times
recalled the more favourable treatment accorded the Canadian
Pacific and the Canadian Northern, and declared that the present
experience should bring home to stockholders of the Argentine
and other Railways, mainly owned by British investors, the im-
portance of establishing themselves, financially and politically,
in the countries where they were operating.
The Canadian Gazette, representing various Canadian in-
terests in London, went even further (Sept. 15) : "We who
have long worked to enhance Canada's fame and good name in
this country cannot but feel deeply concerned when we think of
the thousands of British investors, rich and poor, who, having
put their savings into the stocks of Canada's oldest Railway
enterprise, are now calmly told that their investments are
worthless." The Award of $10,000,000 in respect to Canadian
Northern common stock, which represented no actual invest-
ment, was widely compared with this Grand Trunk decision;
another argument was that during the War Canada did not
follow the example of the British and American Governments
and take control of its railways, nor did it, in these unparalleled
circumstances, sanction increased rates sufficient to enable the
POSITION OF THE CANADIAN PACIFIC RAILWAY 405
Grand Trunk to meet additional expenses and leave a fair mar-
gin for the stockholders. Some comment was more favourable
to the Canadian Government and Hartley Withers in the Satur-
day Review acknowledged the generosity of that Government in
assuming the liability for Guaranteed stock but thought that
the Canadian Government, throughout this long controversy,
had been "most unwisely reticent" in not taking any steps
to make their official documents and reasons for action access-
ible in London.
In 1921, as during so many preceding years,
The Cana- the C. P. R. continued along even lines of manage-
dian Pacific ment, policy and business. As with his distinguish-
N^th^aY J ' ed predecessors— Lord Mount Stephen, Sir William
Position and Van Home or Lord Shaughnessy — when the times
Progress. required it, President E. W. Beatty could face a dif-
ficult Railway and National situation with coolness
and decision. During this period he adjusted rates and wages to
meet conditions and, in the latter case, found the admirable re-
lations between the men and the management of the C. P. R. a
distinct asset; met decreased revenues with stringent cuts in
expense and expenditure ; took his part in the public life of the
country, as head of its greatest independent corporation. As
an institution it was, during 1921, under almost continuous dis-
cussion in Parliament, in the Elections and elsewhere, as the
model upon which a successful National System might be based,
as the concern with which National co-operation was most
essential, or as the chief competitor and national rival of such
a System.
Despite continued depression in trade and finance and in-
dustry the operations of the C. P. R. for 1921 showed better re-
sults than in 1920, with an operating ratio of 80-90 per cent, as
against 83-84% ; the increase in rates was not sufficient to offset
the decreases of 20 per cent, in passenger traffic and 23 per cent,
in freight traffic, so that total revenues showed a decrease of 11
per cent. Maintenance of way and structures and maintenance
of equipment, however, were reduced 11 and 20 per cent, re-
spectively. Traffic expenses increased 25 per cent, and trans-
portation expenses per revenue train mile showed practically no
change. The annual Report for the year ending Dec. 31, 1921,*
showed gross earnings of $193,021,854 or a reduction of $23,-
000,000 from the 1920 record ; the working expenses — including
all taxes— were $158,820,114 or a reduction of nearly $25,000,-
000; the Net earnings were $32,201,740 or an increase of $950,-
000; deducting Fixed charges of $11,519,071 the Surplus was
$22,682,668 or $300,000 more than in 1920.
From this Surplus there were paid two half-yearly divi-
dends of 2 per cent., each, on Preference stock, and four quar-
*Note. — See publication of Report and annual Addresses in full in Supplement to
this volume.
406 THE CANADIAN ANNUAL REVIEW
terly dividends of 1# Per cent., each, on Ordinary stock, total-
ling altogether $21,427,276 and leaving a Net Surplus of $753,-
391. There was, also, a dividend of 3 per cent, or $7,800,000 paid
on Ordinary Stock from Special Income. Of the 1921 expenses
53-84 per cent, was disbursed for labour, 2592% for materials and
general supplies, 15-51% for fuel and locomotive supplies, and
3-49 per cent, for taxes. The President added in his annual Report
for 1921 that : "By the exercise of the strictest economy and the
deferring of work which could be postponed, especially during
the early part of the year when traffic was particularly light, and
by the savings effected through the reduction in wages secured
in September, your Officers were able to reduce expenses to an
amount in excess of the decrease in gross revenues due to the
conditions already mentioned."
During the year the C. P. R. proved its exceptional credit
and reputation — at this juncture — by selling £4,800,000 of 4 per
cent, consolidated Debenture Stock in London; New York took
$25,000,000 more, though the specific security was new to
American investors. As with the affiliated and branch lines of
the Grand Trunk in the United States, the C. P. R. subsidiaries
in that country suffered during 1921 from current conditions
and, especially, from the U. S. tariff against Canadian wheat.
Reference was made by Mr. Beatty to the agreement with Al-
berta for extension and operation of the Central Canada Rail-
way, 25 miles from Peace River Landing to Berwyn, and one
with Quebec for the construction of a line (77 miles) from
Kipawa to the Des Quinze River. The preparation and erection
of a Bronze Memorial to the C. P. R. men who fell in the War
was announced ; it was to be placed in Windsor Station, Mont-
real, with replicas at Winnipeg and Vancouver. Reference also
was made to the death of Lord Mount Stephen, the first Presi-
dent of the Company (1881-83) in his 93rd year; he was de-
scribed as the master-spirit of the enterprise. It may be added
that the Executive Committee of the Board of Directors during
this year was as follows :
Rt. Hon. The Lord Shaughnessy, K.C.V.O., Chairman of Board.
Richard B. Angus Sir Herbert S. Holt
Sir Edmund B. Osier Grant Hall
Edward W. Beatty, K.C., LL.D., President of the C. P. R. Co.
The Assets of the Company on Dec. 31, 1921, totalled $1,-
124,725,248 and included a Property investment of $791,549,287;
Sundry investments and available resources were $241,266,290
and the Working Assets $91,909,770. Liabilities included Stocks
and bonds of $582,538,352 with Note Certificates of $52,000,000;
the Current accounts were $25,415,099 and Equipment Obliga-
tions $16,610,000; Reserves and appropriations totalled $76,-
603,869, and Premiums on Ordinary Stock, sold, were $45,000,-
000, with net proceeds of Lands and Townsites $93,798,267; Sur-
plus Revenue from Operation was $128,481,119 and the Surplus
in other Assets $100,989,769 with Sundry small items. The Cash
POSITION OF THE CANADIAN PACIFIC RAILWAY 407
in hand on Dec. 31, 1920, was $30,090,941 and one year later it
was $45,318,948; the Pensioners of the C. P. R. on Dec. 31, 1921,
numbered 1,030 with $1,562,476 at credit of the Fund; there was
a balance of $4,307,979 at credit of the Insurance Department or
an increase of $500,000 in the year ; the Equipment of the Com-
pany included 2,255 locomotives, 90,648 freight cars and 10,953
other cars, vans, etc. ; the mileage of the Railway was 14,784 in
Canada and 5,097 in the United States. As illustrating the wide
National and Imperial character of the C. P. R., Mr. Beatty,
speaking at a Canadian Club banquet in New York on Jan. 21,
summarized its work in the War :
The Canadian Pacific had perhaps more points of contact with
the War than any other industrial enterprise outside of Great Britain.
It had large ocean-going steamers on the Atlantic and Pacific. It had
a transcontinental railway system serving all the chief industries of
Canada with affiliations in the United States, which placed its Canadian
ports in particularly close touch with the many important manufactur-
ing centres in the United States. It operated a manufacturing plant of
railway equipment at the Angus shops in Montreal containing, not only
up-to-date machinery, but also engineers of the highest skill, capable of
meeting any manufacturing problem that might arise. It employed ex-
perts in railway construction, whose services proved invaluable, to
facilitate the movement of artillery and transport behind the lines. It
employed men of administrative and executive ability, whose services
were gladly loaned to the Imperial Government, for the purchase of
immense supplies required from Canada, for the chartering of ships and
for the direction of freight matters in connection with the transport of
such supplies. It had fostered a loyal and patriotic spirit among its
85,000 employees, which meant a large number of volunteers for over-
seas service and, last but not least, it had large reserves of capital at its
disposal which it was glad to lend to the Imperial or Canadian Govern-
ment or invest in Canadian securities with the purpose of raising money
for the successful prosecution of the War.
During 1920 and again in 1921, Mr. Beatty urged, whenever
possible, the necessity of a large and regulated Immigration for
Canada. Speaking to the press at Montreal on Mch. 20 in re-
spect to the announced deficit of $69,000,000 on the National
Railways, the C. P. R. President declared that without Immi-
gration the prospects of the National lines were, in his opinion,
hopeless, and any legislation which would stem the tide of de-
sirable Immigration must inevitably pile up further deficits. It
was, he said, an aggressive propaganda of this kind that built
up the C. P. R. : 'The gates of Canada should be opened once
more, not only to the British, French and American immigrant,
but also to the Scandinavian and the more desirable type of
Continental." He pleaded, also, the cause of the skilled me-
chanic, in addition to that of farm hands and domestics, on the
ground that Canadian industry would be handicapped in its
progress without them. Addressing the annual C. P. R. meeting
on May 4, Mr. Beatty pointed to the $12,000,000 added to their
Pay-roll by the so-called Chicago Award — accepted in Canada
under parity of conditions — and assumed that with current
changes and wage reductions in the United States, similar con-
408 THE CANADIAN ANNUAL REVIEW
ditions would prevail in Canada: "A reduction in both wages
and freight rates would have a pronounced and beneficial effect
on the general sentiment in the country through confidence that
normal conditions had been more nearly reached." Speaking
in Montreal, on July 2nd, as to rumours that the Government
would follow the United States' example in stringent Immigra-
tion regulations, Mr. Beatty deprecated such action :
It is obvious that two great things are necessary in this country's
prosperity. One is the backing of foreign capital for new enterprises in
order that our natural wealth may be properly realized, and the second
is more people to aid these industrial conditions, extend the farm areas
under cultivation and by their number and financial solvency ease the
burdens of the country, x x x We should be very careful not to
frame our Immigration policies on the principle that temporary de-
pression and temporary unemployment are justification for barriers.
It seems to be the assumption that Immigration is like a tap that can
be turned on and off with absolute freedom. This is not the case. It
must be a continuous flow of the right kind of people if we are going
to carry our burdens with anything approaching ease. Coupled with an
active desire expressed through a sane Immigration policy to obtain
settlers of the right type for Canada should be a system of acceptance
or rejection at the port of embarkation so as to reduce to a minimum
the sometimes almost inhuman practice of returning rejected immigrants
from a Canadian port.
Mr. Beatty, in the course of a tour of Western inspection —
accompanied by Senator F. L. Beique, Sir Herbert Holt of Mont-
real, and Sir A. M. Nanton, of Winnipeg, was in Winnipeg on
Sept. 9, and told the press that there was a steady improvement
in the financial situation: "Conditions in Canada are funda-
mentally sound. There has been nothing in the nature of an
acute depression, especially as compared with other countries.
It is, I think, a fact, however, that the two great necessities for
this country's advancement, namely, the obtaining of suitable
settlers in as large numbers as possible and the attraction of
capital for extension of Canadian enterprises, should be given
the most serious consideration now, and not later." At Moose
Jaw on Sept. 12 he referred to the Rates question and stated at a
Dinner given by several organizations that: "The Company
which I represent is one of the largest individual purchasers of
goods in Canada and you do not need any assurance from me
to indicate the disadvantage of the Company being compelled to
defer purchases, or buy in very small quantities from day to
day, rather than freely and courageously against their future
necessities. No one is more anxious than I that rates should
come down as soon as they can come down with safety. There
is not a Railway executive in America who would not prefer to
make money by the free movement of traffic at moderate rates
than by a slight movement at high rates."
His summary of problems to be met was as follows: "(1)
The protection of Railway property so that it should not run
down and the character of the Service become depreciated; (2)
the maintenance of the kind of Service an exacting public de-
POSITION OF THE CANADIAN PACIFIC RAILWAY 409
mands; and (3) the continuance, through a satisfactory earning1
power, of a high credit in order that money may be forthcoming
to enable the Companies to meet future transportation neces-
sities of Canada." The other Western centres were visited and
a somewhat-needed spirit of optimism interjected into public
discussions; at Victoria Mr. Beatty stated (Sept. 20) that elec-
trification of lines was still a matter of the future, though, in
time, certain lines would, beyond doubt, be electrified; from
here points north were visited, including the Okanagan Valley,
and at Vancouver on his return trip, Mr. Beatty urged — as he
had done elsewhere — a scientific rather than blanket increase,
or decrease, in rates ; Calgary was visited on Sept. 24, and on
Oct. 1st, the C. P. R. President was back in Montreal after a
tour in which his statements and speeches had done much to
strengthen the tone and spirit of the West.
Incidents of the year included the operation of the Trans-
Canada Limited, from Montreal and Toronto to Vancouver, at
a cost of $250,000 a month, as the alleged fastest long-distance
train on the Continent ; the depression in C. P. R. stocks at New
York, where in June the lowest price in 20 years was reached —
101 on June 26; the continued Publicity work of the C. P. R.
abroad under the Montreal direction of J. Murray Gibbon, and
the European control of a Special Department in London — the
British side of the work including a remarkable display at the
British Industries Fair in Glasgow and other points, and the
exhibition of a large mechanical map of Canada ; the visit of
H. M. Queen Mary and Princess Mary to the C. P. R. Offices in
Trafalgar Square on May 13 ; the establishment of C. P. R.
headquarters at New York, near the Grand Central Station, and
in a new building (said, locally, to have cost $8,000,000) on the
corner of Madison Avenue and 44th Street and with a 21-year
lease ; the appointment of Andrew Allerton as General Superin-
tendent of Canadian Pacific Hotels from Coast to Coast.
The Railway Proposals of Lord Shaughnessy. As President
of the C. P. R. from 1899 to 1918, with a record of 36 years' as-
sociation with its management or operation, Lord Shaughnessy
was a recognized authority and, in fact, a world-figure in trans-
portation matters ; the presentation to the Government and
publication of definite suggestions from him in a critical rail-
way period such as 1921, was a matter of importance. His pro-
posals took the form of a letter dated Apr. 16th, with a Memor-
andum, addressed to Mr. Premier Meighen, and he prefaced the
former with the statement that the Railway question was the
"most momentous problem" before the country; that he feared
the Grand Trunk transaction would prove "disappointing and
expensive" ; that the C. P. R. was not behind his plan and he
did not, in fact, know how the Company might view it ; that his
Memorandum was much along the lines of one submitted to
Sir Robert Borden in 1917.
410 THE CANADIAN ANNUAL REVIEW
This document first pointed out that conditions had greatly
changed in the past four years and that Canada now had about
40,000 miles of railway lines : "Of the lines included in this
mileage approximately 37 per cent, earn annually sufficient
money to pay all interest charges and to give a return on the
share capital ; 54 per cent, fail to earn enough to pay their work-
ing expenses and are consequently operated at a loss ; and 9
per cent, earn interest on some of their major securities but
have nothing to apply as dividend on the share capital. In-
cluded in the last-mentioned is the Grand Trunk Railway
System, which is international in character." This latter
element of its business, he added, produced the greater part of
the G. T. R. gross revenue. As to the Government policy in this
respect, he was explicit : "Even at this advanced stage it would
be wise for the Dominion Government to drop all measures
looking to the acquisition or control of the Grand Trunk, to
relieve that Company of all obligations in connection with the
Grand Trunk Pacific and to grant easy terms covering a period
of years for the repayment of any amounts advanced by the
Government to the Grand Trunk or secured on the credit of the
Government in the last two years."
After reviewing the mistaken policies of construction in
recent years and declaring that the Canadian Northern System
"was, by over-expansion, made a hopeless business proposition,"
Lord Shaughnessy pointed out that in respect to much of the
new National System there was no rolling stock equipment nor
terminal yards, freight facilities, repair shops, or other require-
ments, commensurate with its needs, and that the cost of pro-
viding them would be very great. As to this System, he did not
think its traffic and general expenses were excessive but he was
not optimistic as to meeting its annual deficits in the near future :
"Meantime, the Canadian people will be compelled, year after
year, to raise by taxation sufficient money to meet the appalling
annual deficits, unless by some process the cost of the mainten-
ance and operation of the National lines can be brought to much
lower figures. This, however, would not appear to be practic-
able, as the National System, engaged in competition for traffic
with another very strong railway Company, would be at serious
disadvantage unless in train service, equipment and in other
respects it offered the public facilities approaching those obtain-
able elsewhere." His plan was a generalized suggestion fol-
lowing upon a review of the Assets and resources and favour-
able finances of the C. P. R. :
If by some arrangement with the Company these assets could be
segregated and the Railway property added to the Government System,
the System would comprise 31,000 miles of railway with a considerable
number of parallel lines unimportant or useless. The consideration to
be given the shareholders of the C. P. R. Company in exchange for the
properties above denned would, I imagine, be in the nature of an under-
taking by the Government of Canada to pay to the shareholders, in
perpetuity, a fixed annual dividend on the share capital, to be supple-
POSITION OF THE CANADIAN PACIFIC RAILWAY 411
mented by a further payment when the whole property was yielding a
specified return.
The extraneous assets of the Canadian Pacific would be transferred
to and administered by Trustees or by a subsidiary Company with an-
other Board of Directors, so that the Directors of the Railway Company
would be interested only in the administration of the trust placed in
their hands by the people of Canada. There would be no motive for
selfishness, if such a thing were possible in the circumstances. The in-
come on their shares being fixed and unchangeable, excepting as above
provided, the Canadian Pacific shareholders could receive no advantage
from preferential treatment given to any particular portion of the Rail-
way System. The Directorate would have every incentive for wise,
prudent and business-like administration.
These were the broad principles of the plan. As to details,
political management was ruled out as impossible and ruinous
and the proposal made that the existing C. P. R. management be
utilized under the terms of a contract approaching perpetuity
in its duration, to administer and operate the whole property
for account of the Canadian people. Under the consolidation,
and taking 1920 figures as a basis, the gross earnings would be
$342,283,000 and the operating expenses $345,973,000; to the
latter would have to be added the annual fixed charges of the
whole System, the guaranteed dividend on C. P. R. preference
and common stock, and incidentals ; the resulting total deficit
would be about $80,000,000. Against this Lord Shaughnessy
added a possible saving of $56,000,000 by bringing the combined
average of operating costs up to the C. P. R. level, a saving of
about $12,000,000 by reducing these costs 4 or 5 per cent, more,
in years less expensive than 1920, which he thought possible,
with the balance easily wiped out by improved conditions of
national settlement and development.
Great interest was taken in these suggestions. There were
many in Ottawa and in Montreal, and even in Toronto, who
favoured Public ownership but yet thought such a scheme well
worth exploring and who still were in doubt as to the Grand
Trunk policy; there were others with the strongly entertained
view that any way out of the situation in which the Government
Railways were placed, should be welcomed; there were power-
ful interests in Montreal and amongst financial men everywhere
who would consider any practical plan for getting away from
further national railway responsibilities. E. L. Pease, General
Manager of the Royal Bank of Canada, thought it an excellent
solution of a most difficult problem : "In fact, I can see no other.
Continued annual deficits on the scale of the past year would
soon imperil the whole financial structure. I think the Govern-
ment should seize this propitious opportunity of escaping from
a critical situation." F. W. Stewart, Chairman of the Canadian
Manufacturers, Montreal, thought it a "very wise and desirable
move," and J. B. Thomson, Chairman of the British Columbia
Branch, expressed similar views ; Alfred Lambert, President of
the Montreal Chamber of Commerce, said that it merited "very
serious consideration."
412 THE CANADIAN ANNUAL REVIEW
Opinion at Ottawa amongst politicians was divided in
private, but in public the plan, generally, was considered as full
of political difficulties — Senators L. O. David, J. S. McLennan
and F. S. Beique were amongst the few who publicly supported
it. The press was not very favourable ; as a rule comment was on
the lines of "interesting and stimulating but impracticable," and
the Toronto Mail and Empire made the point that the C. P. R.
under proposed conditions, would not have the same motive to
persevere against difficulties, and to fight for business, when
dividends were assured beforehand ; a number of the financial
papers — including the Montreal Financial Times — were more or
less favourable to the scheme. The Toronto Globe (Apr. 28) gave
two strong reasons against it: "The first, which appears to
The Globe to be insuperable, is that he proposes that the share-
holders of a Railway which is owned chiefly in Great Britain and
the United States shall, 'under a contract approaching per-
petuity,' appoint from year to year Directors, who shall manage
not only their own property, but property belonging to the
people of Canada worth not less than $850,000,000. The second
serious objection to Lord Shaughnessy's plan is that it con-
templates the transference to the C. P. R. of the National Rail-
ways under terms giving the C. P. R. great power without the
incurring of any risk."
The Question of Public Ownership. As in 1920, this ques-
tion was not discussed theoretically ; for reasons of complicated
and gradual growth, Canadian public opinion was supposed to
be favourable to the general theory and plan. Practically, how-
ever, and chiefly in respect to existing Railway deficits and dif-
ficulties, it was much discussed and there was a good deal of
opinion hostile to the current application of the principle. In
Government circles at Quebec there was no friendship for the
general idea and the Electric interests of that Province had de-
veloped along independent lines without Government aid; in
Montreal the C. P. R. influence was, of course, powerful and the
chief financial interests, including such men as Sir Lomer Gouin,
were opposed to Government Railway ownership; at Ottawa
there were many in both of the older parties who looked askance
at the growing responsibilities involved and disliked the whole
ownership idea ; in Toronto, the Drury Government represented
much opinion, outside the Farmers' party, in fighting the Beck
policy and, especially, the Radial plans, in which this principle
was a vital factor; there were, in the Senate, many of both
parties opposed to Government ownership — including F. L.
Beique, L. O. David, Hewitt Bostock, G. G. Foster, N. A. Bel-
court, R. Dandurand, Arthur Boyer and J. P. B. Casgrain ; in
Quebec, generally, and in the Maritime Provinces, there was no
very strong feeling in favour of Public ownership of railways.
Senator Bostock, Liberal leader in the Upper House, touch-
ed an important issue in respect to the Grand Trunk when he
pointed out (Apr. 28) that: "Under Government ownership
POSITION OF THE CANADIAN PACIFIC RAILWAY 413
the Grand Trunk lines in the United States would become lia-
bilities instead of assets; there would be a multiplication of
troubles in the fact that these roads came under numerous State
laws, and a consequent probability that the Railway problem
would go from bad to worse." Sir John Willison, before the
Canadian Club, Montreal, on Jan. 31, made the point against
Nationalization that the National Railway System included un-
necessary duplication of mileage and stretches of road which
might remain unprofitable for a generation. The common stock
of the Canadian Northern had been written down to 10 cents on
the dollar, that of the Grand Trunk and of the G. T. P. had been
extinguished: "Upon the cost of these Railways the people
will have to pay interest in high rates or taxation ; if the charges
go into taxation a permanent burden will be laid upon the work-
ing and professional classes in direct relief of shippers and pro-
ducers, whose goods and products provide the freight revenues
of the Railways."
Much was made in financial circles of preceeding failures
in Government management of railways. According to The
Times of London (Feb. 18), had the British Government handed
back the English Railways to their owners, as they actually
were when Government control ceased, there would have been
default on 1,000 million pounds of Railway capital ; in the United
States the Railway executives claimed that Government control
(1917-20) had increased the employees by 261,000 while the
work done by unskilled labour was 112 per cent, more expensive,
and that by machinists 180 per cent, more, than under private
operation. The Quebec Board of Trade in March passed a
Resolution dealing with the subject from a new angle — new at
least to Ontario discussion: "That the policy of the manage-
ment of Government railways in diverting the grain trade of
the West to New York for export, and by means of prohibitory
freight rates, preventing this grain from coming to Canadian
seaports for shipment, is most reprehensible and unpatriotic,
and has resulted in the payment of many millions of dollars of
freight money to United States railways, that should have been
earned by Canadian railways and, if so, would have gone a long
way to reduce the alarming deficit in Government operation
which all now deplore."
As the year passed on these issues formed a part of vital
legislation at Ottawa and of policy discussion in the Elections ;
mainly the matter was not dealt with as one of principle, but as
a necessity in practice. In almost every connection, the C. P. R.
was quoted or referred to either as (1) an example of the bene-
fits of private ownership ; (2) a picture of the undue profits ac-
cumulated by great monopolistic enterprises; or (3) an illustra-
tion of what the National Railways should do or become. It was
used to prove the folly of Public ownership of railways and to
prove, also, the benefits which might accrue to the people
through Public ownership.
414 THE CANADIAN ANNUAL REVIEW
The Shipping interests of Canada had a year of
The Cana- difficulty in 1921 ; there were political troubles for
dian Mer- those associated with the Government and, in most
rh^Xhe*" cases, reduced rates and traffic. There was, also,
C!P!R. Com- keen competition between Government and private
pany and the Lines and strong opposition expressed on be-
Canada ^ half of the latter against Government aid being
Steamship given to one set of ships at the country's expense.
* Halifax shipping interests certainly were affected
and the Red Cross Line and its Newfoundland
business seriously so, while the Royal Mail Steamship Line
felt the competition in its West Indian trade.
The Hon. C. C. Ballantyne, Minister of Marine, was politic-
ally responsible for the Canadian Government Merchant Ma-
rine ; D. B. Hanna, President, and the National Railways ad-
ministration, were responsible for its control and management.
Mr. Hanna, toward the end of the year, described the general
position of these interests (Canada, London, Dec. 24) as follows:
"The Cunard Company, in conjunction with the Canadian Na-
tional Railways, and the White Star, in conjunction with the
Grand Trunk, provide Atlantic steamship passenger services for
the National System. Arrangements have been made by which
passengers using the steamers of the Union Steamsip Co. of
New Zealand may be ticketed through via Canadian National
and Grand Trunk lines. In the matter of ocean freight traffic
the Canadian National has a strong ally in the C. G. Merchant
Marine, Ltd., operating under direction of the National Rail-
ways, a fleet of 60 steel cargo steamers. There are 6 vessels
yet to be delivered; the complete programme of 66 vessels will
provide a total of 380,000 tons. These vessels provide cargo
and Liner services all over the world."
Meantime, Mr. Ballantyne in the Commons, on Mch. 29, had
reviewed the C. G. Merchant Marine conditions during 1920
with sailings by different ships to Liverpool, London and Glas-
gow, Cardiff and Swansea, the British West Indies, Cuba, the
Mediterranean, Straits Settlement, Java, India, Australia and
New Zealand. The Minister claimed substantial gains to Can-
ada's export trade as a result; the fixed assets were stated at
$49,243,604 (vessels at cost less depreciation), the current assets
at $3,535,653, the gross earnings at $10,210,442, the operating
expenses at $8,733,917, and the total net earnings at $781,460.
The Estimates for this year included $8,330,000 for completion
of the Government's programme and the subject was debated at
length on Apr. llth. J. H. Sinclair (Lib.) claimed that in at
least three cases the Government was subsidizing Steamship
lines which competed with the Government Marine ; denounced
Government ownership of shipping in general and declared that
the operating profit on the Line did not nearly cover interest on
the money invested in the ships. The Minister, in his reply,
claimed that a fleet of ships was absolutely essential to a Trans-
THE CANADIAN STEAMSHIP INTERESTS OF 1921. 415
continental railway and cited the C. P. R. ; he quoted many
points of superiority in the Government ships over British tramp
steamers.
A long debate followed and was continued on the 13th ; the
Opposition was critical and antagonistic but the vote eventually
passed by 103 to 79; the Financial Times, Montreal, claimed that
there was actually a deficit for the year, through depreciation
and unpaid interest, of $17,000,000. On Apr. 13 the Toronto Globe
declared that : "Canada has on her a hands a fleet of ships that
must either be sold at a sacrifice or operated in connection with
the National Railways to the best possible advantage and with
the very highest business ability which can be attracted to the
public service. The Globe believes the latter course to be in the
public interest." The 63 ships so far constructed had cost $75,-
000,000, according to Mr. Ballantyne, and had a deadweight
tonnage of 360,000. During the year the trade depression show-
ed itself in many of these ships returning to Canadian ports with
inadequate cargoes ; in all cases, the management announced,
British subjects were employed and, of the 1,674 on the pay-roll
at the beginning of the year, one-half were Canadians.
Incidents of 1921 included the inauguration of a Service
(Jan. 25) from Halifax to Nassau in the Bahamas, Kingston in
Jamaica, and Belize, British Honduras ; the organization of a
Pacific Coastal Service between Vancouver and Victoria and
Seattle, San Francisco and other United States points ; the an-
nouncement, on Feb. 9th, of a general reduction in cargo rates
between Canadian Atlantic ports and Great Britain with a view
to stimulation of freight traffic ; the launching at Prince Rupert,
B.C., of the Canadian Scottish of this Line (May 12) as the first
ship constructed at that port; the statement, on June 8th, that
the Canadian Exporter of the Government's Pacific fleet had left
Australia for Montreal with the first direct Australian cargo for
that city, while the Canadian Carrier had reached Montreal as the
first ship in modern shipping annals to arrive at that port from
British Columbia ; the inauguration of an Oriental service on
June 8 with the sailing of the Canadian Highlander for Kobe,
Nuchwang and Taku Bar.
On June 11 the Department of Marine issued a statement
that : "Notwithstanding the continued depression in shipping, the
vessels of the Government Merchant Marine are succeeding in
finding useful and profitable occupation. Since Jan. 1st there
have been 52 vessels in commission and the returns from opera-
tion to Apr. 30, last, show a substantial profit after deducting
operating costs. During the period referred to voyages have
been made to the United Kingdom, South America, Australia,
West Indies, Newfoundland and European ports. All of these
services have yielded a profit with the single exception of that
to the West Indies." Whatever the merits, or otherwise, of
Government policy in this connection, there was no doubt of the
energy with which the business was pressed and development
416 THE CANADIAN ANNUAL REVIEW
pushed. During June, for instance, large shipments of wood-
pulp were being discharged at United Kingdom and Continental
ports and, in addition, certain ships running between Canada
and England had been fitted out for the carriage of live cattle
while several ships were at this time equipped with cold storage.
Agreements were arrived at during the first part of 1921 with
the Cunard Line, the British India Steam Navigation Co., Ltd.,
Messrs. Alfred Holt, Ltd., and the Anchor-Donaldson Line ; this
policy of negotiating friendly agreements with private com-
panies was said to have borne satisfactory results. It was
claimed by the management that their policy lay in the opening
up of new trade routes rather than adhering to competitive ones,
and that this feature should secure for the Line the interest and
support of all enterprising traders.
At Halifax, on July 9th, the Canadian Cruiser, said to be the
largest ocean-going steel steamer built in Canada, was launched
for the C. G. M. M. by Mrs. G. H. Murray, wife of the Pro-
vincial Premier, from the Halifax Shipyards. In August a
series of misadventures occurred. Canadian Exporter was lost
off the Oregon Coast and on the 18th the Canadian Recruit was
injured in a collision about 45 miles below Quebec ; about the same
time the Canadian Importer, the first of the Fleet to go around the
world, developed a leak out from Vancouver, en route to Aus-
tralia, and had to be abandoned. The Canadian Transporter was
launched from the Coughlin yards, Vancouver, on Aug. 31, and
the Canadian Constructor from Halifax on Sept. 24 — the latter
sailing later from Montreal to Russia (Nova Rossick on the Sea
of Azov) with a cargo of tank cars bought and paid for by the
Soviet Government. On Sept. 21 the Canadian Inventor arrived
at Durban, Natal, from Vancouver, with a cargo of canned goods
and lumber — the first of the Line to reach South Africa.
At the close of the year four Government vessels were laid
up in Montreal for the winter season ; the final report of opera-
tions for the year showed a substantial deficit. The operating
Revenue for the year ending Dec. 31, 1921, was $10,768,828 and
operating Expenses $12,979,553, with a Deficit of $2,210,724. To
this had to be added Interest accrued on notes to Government,
during the year, of $3,351,500 and reserve for Depreciation of
$2,374,410, which, with minor items, made a total Deficit of $8,-
047,635. Mr. Hanna, in submitting this Report, stated that "con-
ditions existing in the Steamship business throughout the world
made such a result inevitable. Admittedly^ from an economic
standpoint, 1921 was the worst year in recent shipping experi-
ence. In addition to a general falling off in tonnage, ocean rates
were reduced, in some cases, as much as 50%. Steamship rates
that would bring in a proper return did not exist, and the best
rates would only pay operating expenses. While tonnage out-
ward was fairly well maintained, the inward business, especially
from the United Kingdom, Continental ports and South America,
fell away to such an extent that homebound cargo was prac-
THE CANADIAN STEAMSHIP INTERESTS OF 1921. 417
tically impossible to obtain. On this account many voyages re-
sulted in losses. The total loss had been substantially increased
by charging depreciation at 4% and interest at 5l/2% per annum
on the original cost of the vessels. The difficulties of the situa-
tion were further increased by the addition of 18 new vessels to
the Company's Fleet during a most severe business depression."
There was no doubt as to the world conditions in shipping.
Mr. Hanna explained some of the advantages of operating the
C. G. M. M. in face of these losses. To Canadian trade in gen-
eral and to the National Railways in particular the gains had
been considerable : "Large shipments, which have been handled
by the Merchant Marine at the low rates prevailing, have pro-
vided traffic return to the National Railways. Much business of
this character would have been handled through foreign ports
and by other or foreign railways if the Company's vessels had
not been available. Boards of Trade throughout Canada and ex-
porters of many products have placed on record their apprecia-
tion of the assistance the Merchant Marine has rendered to
them, without which they claim a large amount of export busi-
ness secured would have been lost to other countries." During
the year 235 voyages were made by the Company's ships. The
Balance Sheet showed Assets of $82,668,252 of which $69,334,-
430 stood as the cost value of the Fleet; the Liabilities were
chiefly in notes payable, and due, to the Dominion Government,
secured by mortgages on the ships, and totalling $78,668,668.
The Canadian Pacific Steamships Ltd. The C. P. R. Steam-
ship Service held its course in 1921 along the usual lines of suc-
cessful and profitable operation. Early in the year the Railway
management re-assumed control of the Canadian Pacific Ocean
Services, Ltd., in its traffic organization, and Sir Thomas Fisher,
the European Manager of the latter, stated, on Feb. 16, that it
had been done in the interests of economy and efficiency. A
little later it was officially announced in London that the C. P. R.
had been appointed sole traffic managers for the C. P. O. S., Ltd.,
and that all traffic — freight and passenger — in connection with
these ships would be under the control of and directed by the
C. P. R. ; that in its organization from Apr. 4, onwards, there
would be a merging of offices and officials with W. G. Annable,
General Passenger Agent, becoming, also, Assistant Passenger
Traffic Manager; that in England the Transportation manage-
ment would remain in the hands of Sir Thomas Fisher, K.B.E.
The C. P. R. Company had, at this time, 82 ships in Ocean, Lake
and Coastal Services, with a tonnage of 438,604 and separate
ocean services from Quebec and Montreal to Liverpool, to
Glasgow, to Southampton, to Bristol, to London, to Antwerp, to
Havre, and from Vancouver to China and Japan and to Australia
and New Zealand. During the year incorporation was changed
with the above name.
Meanwhile, a new Service was inaugurated to the West
Indies — the Sicilian sailing from Montreal via Boston to Cuba
418 THE CANADIAN ANNUAL REVIEW
and Jamaica ; there were two of the "M" ships under construc-
tion— the Montrose and Montclare — of 16,500 gross tons ; the Em-
press of Canada, a 22,500-ton ship, was under re-construction for
the Empress Pacific fleet, while the Company purchased three
great German steamships (Kaiserin Auguste Victoria, the Tirpits
and the Prinz Friedrich Wilhelm) which they re-named, respec-
tively, the Empress of Scotland, the Empress of Australia, and the
Empress of India— the first of these (25,037 tons) was put on the
Atlantic route as was the third (17,082 tons), and the other
(21,400 tons) was under re-construction for the Pacific. Other
accessions to the active Fleet included the Princess Louise, launch-
ed at Vancouver, on Aug. 29, from the Wallace Shipyards by Mrs.
J. W. Troup, to be the principal ship on the coastwise service of
the C. P. R., and the Montclare (16,200 tons) launched at Glas-
gow, on Dec. 17, by Lady McLaren Brown. Sir George Brown in
describing the shipping record and position of the C. P. R., stated
that it had, altogether, expended $100,000,000 on the Clyde in
the construction of its vessels.
Incidents of the year included the increased competition of
U. S. shipping in the Pacific with the advent there of six new
American liners of 13,800 tons each running from Seattle or San
Francisco to Japan, China and Manilla — the C. P. R. steamers
remaining, however, the largest, fastest and most luxurious
vessels on that route ; in March it was announced that the Do-
minion Government had agreed to permit general Oriental
mails being carried on the fast C. P. R. liners — this mail matter
having for a time been carried from Seattle in other than Cana-
dian ships; a little later it was stated that the C. P. R. would
have an exclusively Canadian wireless service, nightly, to all the
Company's liners on the Atlantic; an interesting feature of the
Canadian Pacific liners during this year was in the train-loads
of silk shipped from its Pacific vessels to Canada and U. S. land
centres — three million dollar cargoes being not uncommon and
that of the Empress of Asia (Apr. 19) being valued at $8,500,000.
In October the C. P. R. inaugurated a Baltic passenger traffic
by the Scandinavian, leaving Montreal on Oct. 1st, and the Cor-
sican (Oct. 15) with Dantzic as the port-of-call ; at this time it
was announced that the British Government had selected the
C. P. R. Line and the steamers Scotian and Victorian to carry its
troops to India ; during this year the Empress of Japan com-
pleted her 155th voyage between Vancouver and Hong Kong, or
a total of 2,500,000 miles in C. P. R. service. In the well-known
case of the wreck of the Princess Sophia off the Alaskan coast in
1918 the C. P. R. (Nov. 25) won a verdict from Seattle Courts
that its damages as to passengers, baggage and cargo should be
limited to the value of the ship, the passenger fares and the
cargo tariffs charged ; in December a change v/as made by which
C. P. R. Liners were to dock at Southampton in future instead of
Liverpool ; at this time, also, it was stated that the C. P. R. had
arranged for all their trans-Atlantic steamships to be fitted up
THE CANADIAN STEAMSHIP INTERESTS OF 1921
419
with cinematograph outfits for the entertainment and educa-
tion of ocean travellers, and that these were to be equally avail-
able to persons travelling steerage and in the saloon. The C.P.R.
annual Report for 1921 showed the net earnings of its Ocean
and Coastal Steamship Lines as $2,785,614.
The Canada Steamship Lines, Ltd. The Report of this
Company for the year of Dec. 31, 1920, showed Fixed Assets —
Ships, real estate, Docks, etc.— of $35,468,716, with $6,261,584
allowed for Depreciation reserve ; Current and working Assets
of $8,017,693; Leases, contracts and Good-will $8,424,646 and a
total of $48,894,394; the Liabilities included Capital stock, $24,-
500,000, Funded Debt and Bonds of $6,501,483 and current or
accrued liabilities of $7,547,999; the Revenue was $20,248,611,
the Expenses $16,220,337, the Net Earnings $4,028,274, and the
Profits of the year $1,932,772 with a Surplus of $8,611,147. In
February the usual quarterly dividend of Ify per cent, on Pre-
ferred stock was declared but that on Common was passed with
the statement that while the earnings of the year had been ex-
cellent, the Directors had decided to await developments in cer-
tain financial proposals for capitalizing the increased assets of
the Company. J. W. Norcross, the President, was at this time
in England, where he had been appointed to represent Canada
on a Government Commission enquiring into Trade conditions ;
on Mch. 2nd a cable stated that he had been received in audience
by the King.
At the ensuing annual meeting in May, F. S. Isard, Comp-
troller, was appointed to the position of Managing Director of
the Company, in succession to Mr. Norcross, who retained the
position of President and chief Executive Officer. It was an-
nounced that the new financing plan had been approved, almost
unanimously, by the Shareholders ; Mr. Norcross presided and
stated that arrangements had been concluded with Norwegian
shipowners by which their vessels, in conjunction with the ocean
vessels of the Company, would be operated by the latter between
Canada, England and France ; the suspension of dividend upon
the Common stock was confirmed and the new Directors elected
were Viscount Long of Wexford, J. W. Norcross, Dr. W. L,
McDougald, Tancrede Bienvenue, and F. S. Isard, together with
H. B. Smith, D. B. Hanna, J. P. Steedman, G. H. Smithers,
W. E. Burke, Hon. J. P. B. Casgrain, J. E. Dalrymple, Edmund
Bristol, M.P., Hon. Frank Carrel and M. J. Haney.
In April the Company re-entered the trans-Atlantic trade
with its affiliated concern called the Inter-Continental Trans-
ports, Ltd., which in turn, was connected with the Bergen Agent,
A.S. — a Norwegian Company; Japp Hatch & Co., London, were
appointed European agents and operation began in June with
a Line of 12 ships running between Montreal and Liverpool and
between Montreal, Havre, and London, as the immediate objec-
tives. In June, also, the Manoa re-opened for the Company a
regular service between Montreal and Newfoundland. As stated,
420 THE CANADIAN ANNUAL REVIEW
early in September, an issue of $6,000,000, 7 per cent., first mort-
gage collateral bonds was put on the market, but sold rather
slowly; in October the Company's Traffic Manager (J. F.
Pierce) announced that travel on the Great Lakes and the
Northern Navigation Division had been greater than in the
banner year of 1920.
The Fixed Assets in the annual Report for Dec. 31, 1921,
showed a total of $31,821,859, with $6,566,496 allowed for De-
preciation Reserve ; during the year $3,873,595 had been written
off Ocean vessel account ; the Current and working Assets were
$5,472,929, after $1,362,466 had been reserved for doubtful ac-
counts and $1,030,165 charged as losses due by underwriters;
Investments were stated at $3,673,404 less a reserve of $1,250,-
000; the Leases, Contracts and Good-will were placed at $8,-
424646 and the total Assets at $42,525,193. The Liabilities in-
cluded Capital Stock of $24,500,000, Funded Debt bonds of $7,-
861,890 and Current and accrued Liabilities of $6,306,424; the
year's Revenue was $12,786,679, Expenses $10,434,100 and Net
earnings $2,352,579; after necessary Reserves, interest, taxes,
etc., had been deducted the year's profit was stated at $772,850.
The Surplus showed the effect of drastic changes and the writing
down of Assets; the total, without any dividend on Common,
was $3,610,719, as against $8,611,147 in Dec. 31, 1920.
Shipping Notes and Incidents of 1921.
Mch. 19. The White Star (British) Line announced direct bookings
from Bucharest, Roumania, via Antwerp, to Canada ; about this time
the same Line acquired the largest ship in the world, the German liner
Bismarck and refitted it for the Atlantic traffic as the Majestic.
Mch. 25. It was stated at London and Vancouver that the bulk
wheat cargo (3,000) tons on the motorship Buenos Aires had reached
England in perfect condition and the champions of the water route for
western grain from Vancouver via the Panama Canal were elated.
Mch. 31. The Government Mail Subsidies and Steamship Subven-
tions for the year beginning Mch. 31, 1921, totalled over $700,000 for the
following Services not of a Local nature :
Canada and Newfoundland $35,000
Canada, the West Indies and South America 340,666
Canada and South Africa 146,000
Canada, Australia or New Zealand, or both (Pacific) 130,509
Prince Rupert and Queen Charlotte Islands 21,000
Victoria, Vancouver and Skagway 25,000
Victoria and West Vancouver Island Coast 15,000
Vancouver and Northern Ports of British Columbia 24.800
Mch. 31. During the fiscal year ending at this date in 1921 the total
tonnage of ships entering and leaving Canadian ports was 54,648,530
tons against 49,493,533 during the previous year; the total tonnage en-
gaged in the coastwise trade, entering and leaving Canadian ports, was
56,225,509 tons as against 60,552,658 tons in 1920; during the same period
tons of shipping constructed in Canada amounted to 95,838, while 188,-
915 tons of shipping were registered in Canadian ports; 34,623 tons of
shipping valued at $8,456,573 were sold to other countries as against
53,407 valued at $17,819,477 in 1920.
Apr. 16. To illustrate the importance of the Great Lakes shipping
and transportation interests, it was stated at Washington by the Great
Lakes-St. Lawrence Tide-Water Association that the total tonnage
THE CANADIAN STEAMSHIP INTERESTS OF 1921 421
moved on these waters in 1916 was 125,000,000; from Atlantic ports 80,-
000,000; from Pacific ports 10,000,000; from the Gulf Coast, about 15,-
000,000; from U. S. Rivers and Canals some 20,000,000.
May 8. A party of Canadian Senators were shown, at Quebec, the
great grain elevators, capable of handling 2,000.000 bushels, and now
seldom used because most of the Western wheat was shipped via Port-
land, Me., and other United States ports.
May 21. The British Royal Mail Steam Packet Co.— after an in-
terval of nearly 60 years — re-entered the trans-Atlantic service with the
sailing of the Orbita from New York for Cherbourg, Southampton and
Hamburg.
June 16. In order to stimulate the movement of cargoes from Pa-
cific Coast ports to Australia and New Zealand, the General Steamship
Corporation, the Oceanic Steamship Co. with carriers plying out of San
Francisco, the Canadian Government Merchant Marine and Canadian-
Australasian Line operating from Victoria and Vancouver, B.C., agreed
upon sweeping reductions in freight rates to be placed in immediate
operation.
July 23. News was received at Winnipeg that the ocean freight rate
on cattle shipped from Montreal to England had been reduced to $30 per
head.
July 28. The first shipment of chilled meat that ever left Vancouver
for the United Kingdom or the Continent was sent out on the Holland-
America Line steamer Kinderdiik with over 5,400 carcasses of mutton in
the consignment.
Aug. 16. In honour of the opening of a direct line of steamships
between Canada and Italy, a banquet was given on the Caserta of the
Navigazione Generale Italiana, the first Italian steamer to commence
the run on this route. The C. P. R. supported this venture but in No-
vember it was discontinued.
Sept. 28. At a meeting of the various shipping lines of Montreal, it
was decided to make a reduction of 10 per cent, in the existing freight
rates for grain shipped from this port to points in the United Kingdom.
Sept. 28. Pat. Burns, the well-known Western Canada stockman,
told the Calgary Herald, as to shipping cattle to Great Britain, that the
great obstacle to success was in the ocean rates and pointed out the
wide divergence between pre-war rates averaging about $7 a head, and
current ones of $35.
Nov. 1. A. E. Mathews of the Mathews Steamship Co., Toronto,
announced that 9 French freighters, formerly known as the Wolverine
fleet, were crossing the Atlantic to join his Fleet on the Upper Lakes
and that the deal involved an expenditure of about $2,500,000.
Dec. 31. During the season of 1921, shipments of grain from Fort
William and Port Arthur, by boat, amounted to 230,471,866 bushels, a
total exceeded only in 1916, when the phenomenal crop of 1915 was mar-»
ketted and the figures were 267,284,328. A tabulated statement of the
shipments for three years is given below — exclusive of Rye, which did
not exceed 3,000,000 bushels in a year:
Wheat, Bus. Oats, Bus. Barley, Bus. Flax, Bus. Total
1919 94,172,278 16,602,436 12,906,809 1,207,205 125,992,057
1920 116,866,181 14,786,478 6,515,945 1,767,675 142,061,490
1921 161,261,488 49,130,622 12,585,910 4,383,304 230,471,866
Dec. 31. The Shipping Federation of Canada (Montreal) after re-
viewing the total number of 1921 arrivals in port at Montreal as 964
vessels, or an increase of 301 vessels of 860,227 registered tons over the
year 1920, proceeded to state that during 1921 : "The shipping industry
experienced a period of depression which has rarely, if ever, been equal-
led, resultant upon the serious slump in trade and commerce which has
affected the entire civilized world. The world's aggregate shipping
which in 1914 stood at 49,000,000 tons, to-day stands at 62,000,000, so that
owners necessarily have difficulty in securing remunerative employment
422 THE CANADIAN ANNUAL REVIEW
for this tonnage ; forced sales by auction, not only of single ships, but of
whole fleets, have been seen of late, and almost without exception every
round voyage of a large vessel to-day shows a loss of between £3,000
and £4,000."
Dec. 31. The shipments of grain from the Port of Montreal reached
record figures in 1921 with 119,602,189 bushels of wheat, corn, oats and
barley as against 53,148,305 bushels in 1920, which was about the average
in the past ten years.
Dec. 31. The Canadian Robert Dollar Steamship Co. of Vancouver
had a prosperous year in 1921 and the veteran Capt. Dollar— a noted
figure on the Pacific— was the head of a fleet of 24 sailing ships and
steamers running out from Seattle as well as Vancouver. A German
freighter (Kurland} was added to its New York-Vancouver-Orient Ser-
vice in February and in April it was stated that the Canadian Dollar
Co. would market all products of the Whalen Pulp & Paper Co., includ-
ing pulp, lumber and shingles, for a period of three years ; at this time
the biggest cargo of shingles ever shipped from Vancouver for the
Atlantic coast was put on the steamer Bessie Dollar — a total of 12,000,000
in number; in May, A. Melville Dollar, Managing-Director, welcomed to
Vancouver and their Pacific Service a new ship, the Robert Dollar, of
26,000 tons displacement and running 11^ knots.
The Canal business of Canada decreased in
Canadian 1920 and showed an increase in 1921 ; in the former
Canal Sta- year there was a decreased tonnage of 1,259,883
Conditions owing to American competition at Sault Ste. Marie
in 1921. and Buffalo. Freight traffic on the Canadian canals
increased 671,638 tons during 1921 compared with
1920, due to increases on the Welland Canal of 800,350 tons and
on the St. Lawrence of 666,103 tons — heavy grain shipments be-
ing chiefly responsible for these increases. There was, also, a
small increase of 456 tons through the St. Andrew's Canal. All
the others showed decreases, the largest being that of the Sault
Ste. Marie, totalling 480,226 tons. Traffic through the U. S.
Sault Canal also showed a decrease of 30,545,288 tons. These
decreases were due almost entirely to the depression in the Iron
industry, the reduction in iron-ore shipments being 730,568 tons
through the Canadian Sault and 33,326,608 tons through the
United States locks. At this time the through water route
between Montreal, at the head of ocean navigation, and
Fort William and Port Arthur, on the west shore of Lake
Superior, comprised 74 miles of Canal, with 48 locks and 1,155
miles of river and lake waters, or a total of 1,229 miles. The
minimum depth of water on this route was 14 feet. From Mont-
real to Duluth, on the southwest end of Lake Superior, the total
distance was 1,354 miles, and to Chicago, 1,286 miles. Connec-
tion was made with the C. P. R. from points west and south at
Fort William and Port Arthur (6 miles apart). From Fort Wil-
liam connection with the main transcontinental line of the Na-
tional Railways was made by a branch line.
On the through route the approaches to the Canals and the
channels of the intermediate river reaches were well denned,
and lighted with gas buoys under the control of the Department
of Marine, and admitted of safe navigation, in the hands of com-
CANADIAN CANAL STATISTICS AND CONDITIONS IN 1921 423
petent pilots, both by day and night. The Lachine, Soulanges,
Cornwall, Welland and Sault Ste. Marie Canals were lighted
throughout by electricity, and electrically operated. The Far-
ran's Point Canal was lighted by acetylene gas. Of the minor
systems, the Murray, Trent, Rideau, and Ottawa River Canals
were geographically branches of the through east-and-west
route, though, in operation, they served a distinct traffic of more
local nature.* During the year work continued on the new
Welland Ship Canal and various improvements were affected on
the Trent Canal while large plans were under international dis-
cussion for the enlargement of the St. Lawrence Canal System.
In Parliament on May 4 the Welland and Trent Canals were
up for discussion and a good deal of opposition was expressed
to their being allowed free of tolls. Lucien Cannon (Lib.) put
his view as follows : "What is the idea of keeping the Canals
free? Why should not the Government charge tolls on these
Canals? If the policy of no tolls is good concerning the Canals,
why not apply it also to the Railways ? It would not make our
railway deficit any bigger. Why not have free harbours? It
seems to me there is absolutely no sense in this policy. Why
spend millions of dollars in opening up Canals and keeping them
in repair and not charge anything to the users?" Dr. Reid,
Minister of Railways, stated that the reason for adoption of
this policy, 15 or 20 years before, was "to prevent the traffic
from the West and other parts of Canada going by the Erie
Canal and through United States ports. The United States
Government made all their canals free, and if we had not adopt-
ed the same policy, the traffic would have gone via Buffalo and
American ports."
F. H. Keefer claimed that free Canals meant cheaper coal
and a better price for Western wheat : "The price of the wheat
of the Northwest is governed by the Liverpool market, and the
price the farmer gets is the difference between that market
price and the cost of getting it there. So, if we put a toll on the
canals, it would mean the farmer would have to pay that toll."
Hon. Mr. Crerar was inclined to favour a toll : "I think there is
a good deal to say in favour of the argument that every vessel
that passes through a Canal should pay a toll, but that in the
case of the Welland Canal something may be said on the other
side. But I should like to know what on earth can be advanced
in support of no tolls on the Trent Valley Canal or on the Rideau
Canal. The Trent Valley Canal has cost this country about $20,-
000,000 and we are asked now to vote thousands of dollars to
keep it up."
An Estimate for $5,000,000 to be spent on the new Welland
Canal and $339,000 upon the Trent evoked an equally wide dis-
cussion. As to the former, Hon. Dr. Reid said that : "The
original estimate in respect to the Welland Canal was, I think,
*Note.— See Annual Report of W. A. Bawden, Chief Engineer, Department of
Railways and Canals.
424 THE CANADIAN ANNUAL REVIEW
$50,000,000. That is the total amount required to complete the
work and make the Canal of sufficient depth to accommodate
vessels of nearly 25-foot draft and of a very large tonnage. The
present capacity of the Canal, so far as wheat is concerned, is
for vessels of about 75,000 or 100,000 bushels ; when it is com-
pleted vessels with a capacity of 300,000 or 400,000 bushels will
be able to pass through. In my opinion, with the enlarged Canal,
the rates from Port Arthur and Fort William to Montreal will
go away down." Other speakers claimed that this Canal would
cost $75,000,000 before completion; Mr. Crerar continued his
criticism of Trent Canal maintenance. Dr. Reid stated that : "To
complete the Trent Canal through to Georgian Bay— to make it
a complete waterway — will take about $1,500,000. To complete
the contracts on the Welland Canal, will take about $15,000,000
spread over three or four years." J. A. Campbell claimed
that the Welland enlargement would be a positive disadvantage
to Canada:
1. It will admit to Lake Ontario an enormous fleet of upwards of
500 large American freighters, and extend to that Lake the keen com-
petition now so seriously felt by Canadian carriers on the Upper Lakes.
2. It will increase the length of haul of these large American
freighters equally with that of Canadian vessels.
3. It will enable American freighters to load American anthracite
coal as return cargo 90 miles nearer the mines than at Buffalo, thereby
saving the rail haul on every westbound cargo to that extent.
4. Canadian vessels will gain merely the increased length of haul
in large freighters; the point of trans-shipment will be merely changed
to Kingston instead of Port Colborne.
C. G. Power, T. A. Vien, K.C., J. F. Reid, W. D. Euler, and
other Oppositionists spoke against the Canal policy of the Gov-
ernment. There was no doubt, however, as to the general value
of Canals expressed to the United States Senators, Canadian
Ministers and international representatives who visited the St.
Lawrence Waterways in July following. W. G. Ross, President
of the Montreal Harbour Commission, in addressing the visit-
ors (July 16) referred to "the magnificent waterway, its possi-
bilities and the great position it is bound to occupy in the trans-
portation affairs of both the United States and Canada — im-
portant to the West through its outlet for their produce; im-
portant to the East through its power possibilities ; important
to both countries in its co-ordinated construction in keeping
with the enormous growth and progress of both the United
States and Canada."
There might be differences as to methods and means but
the Canals, etc., already financed by Canada to a total of $80,-
000,000 should, he declared, inspire the most faint-hearted. On
the other hand was the contention of many thinkers and pub-
licists— notably Prof. Moulton of Chicago University in his book
Railways versus Waterways that Canals all over the world were
becoming more or less obsolete ! In Canada the official figures
for 1921 showed that the freight traffic on Canadian canals in-
THE ELECTRIC RAILWAYS AND STREET CARS OF CANADA 425
creased 672,182 tons during 1921 compared with 1920, due to
large increases in shipments of grain and lesser increases in
shipments of pig-iron, iron and steel, petroleum and oil and
sugar. The traffic on the Welland and St. Lawrence Canals was
the heaviest on record — except in 1913 and 1914. There was a
decrease on the Canadian Sault Ste. Marie Canal of 480,226 tons,
and of 30,555,288 tons of freight through the American locks due
almost entirely to the slump in iron ore shipments. The Welland
and St. Lawrence had increased, while all the others showed a
decrease. The details were as follows :
Name of
Canal
Sault Ste. Marie
Welland
St. Lawrence
Ottawa
Rideau
Trent
Chambly
St. Peters
Murray
St. Andrews
Total Traffic
1920 (Tons)
2,477,818
2,276,072
2,067,962
233,329
97,837
53,660
325,322
61,373
136,235
5,775
Total Traffic
1921 (Tons)
1,997,592
3,076,966
3,734,065
171,769
95,012
44,247
180,280
56,123
34,280
6,231
The Electric
Railways of
Canada: Tor
onto and
Other
Street-Car
Lines.
The Electric Railways had a hard year in 1920
with increased operating revenues but decreased
net returns ; the figures showed a net operating
revenue of $9,804,762 as against $9,312,884 for the
previous year. The total operating revenues in-
creased from $40,698,586 to $47.047,246 and the ex-
penses from $31,385,702 to $37,242,483. After pay-
ing taxes, interest, etc., there was a net corporate
Income of $954,818 as against $3,704,066 for 1919 and, after
making deductions for dividends, there was a total deficit of
$2,421,286; 13 of the 66 railways reporting declared dividends
amounting to $3,376,194; 41 of the roads had deficits amounting
to $3,658,911 while the other 25 showed surpluses for this year
amounting to $1,237,625.
The total capitalization of Electric Railways in 1920 was
$170,826,404 made up of $91,321,955 of stocks and $79,504,449 of
funded debt. The passengers carried numbered 804,711,333 — or
an increase over 1919 of 55,376,953 and 7-4 per cent., while the
passenger receipts amounted to $43,279,009 — or an increase of
$5,731,553 and 15-3 per cent. The number of employees was
17,341 and the total pay-roll amounted to $24,235,932 or an in-
crease of $4,024,356 and 199 per cent. The Canadian Electric
Railway Association held its annual Convention at Ottawa on
Feb. 1st, and G. Gordon Gale, Vice-President of the Hull Electric
Railway Co., was elected President with Major F. D. Burpee,
Manager of the Ottawa Electric Railway Co., as 1st Vice-Presi-
dent.
Toronto Transportation Interests in 1921. The history of
the Toronto Railway Co., Ltd., as a private corporation in con-
trol of the City's Street Railway, came to an end in 1921 after a
426
THE CANADIAN ANNUAL REVIEW
long record of great prosperity which ended in the year of Dec.
31, 1920, with gross earnings of $7,909,891 and Operating charges
($6,626,508) Interest, Taxes, payment to City as percentage of
earnings ($1,308,339), etc., totalling $8,744,745, There was,
however, a credit balance in Profit and Loss account of $5,161,-
100 after this deficit was deducted ; the Assets reported at date
were $21,683,174 of which $19,681,262 was in values of road and
equipment; the passengers carried in 1920 were 197,346,726 or
over 14,000,000 more than in 1919 and comparing with 109,415,-
264 in 1910; the net earnings were, roughly, $1,000,000 less than
in any of the years from 1910 to 1917 inclusive ; the percentage
of charges to passenger earnings were 795 in 1919 and 842 in
1920, compared with 51 6 per cent, in 1910 and between 55 and 57
per cent, in 1911-17. This was the Railway which, under the
Sir William Mackenzie and City "clean-up" agreement, was to
have come into Civic possession at the first of the coming year
— following varied ratepayer votes along Public ownership lines
which may be summarized* as follows:
Year
1911..
1912..
1914..
1915..
1915..
1916..
1918..
1920..
1920..
1920..
1921..
Purpose For Against Majority
.Civic Car lines 14,609 4,182 10.427
Civic Car Lines 13,817 5,675 8,142
.Purchase Mimico Ry. (City Section) 15,200 7,749 7,451
.Purchase Scarboro Ry. (City Section) 15,938 7,958 7.980
.Civic Car Lines 18,055 7,643 10,412
.Western Hydro Radial 21,247 5,711 15,536
.Acquiring Toronto Railway 40,328 3,725 36,603
.Acquiring Toronto Railway 21,771 2,826 18,945
.Money for same 18,373 4,133 14,240
.Eastern Hydro Radial 31,378 2,356 19,022
.Purchase Toronto Electric Light Co 28,609 1,864 26.745
The Toronto Transportation Commission (P. W. Ellis,
George Wright and F. Miller) assumed charge of the System
on Aug. 31, 1921, but it had been appointed and organized in
the preceeding year, and, an Apr. 26, 1921, had announced that
100 cars of a new and up-to-date character and 80 trailers were
being ordered from the Canadian Car and Foundry Co., Mont-
real, at a cost of $1,270,000, that it was the intention to retain
the existing gauge of track and that a general reconstruction of
the System would begin in the Autumn. On May 26 the Com-
mission described a contemplated expenditure of $7,000,000 —
appropriated by the City Council — in the above matters and for
connecting up the Toronto Railway and the existing Civic sys-
tems; for providing the plant and materials necessary for the
rehabilitation of the existing System and the laying of new
lines and extensions, special work, overhead equipment and ma-
terials generally; for new car-barn and shop facilities, prepara-
tion of designs for new plant and equipment and general organi-
zation work. Following the formal taking over of the System,
on Aug. 31, increased passenger rates were inaugurated of 7
cents cash, 4 tickets for 25 cents, 50 tickets for $3.00 and 15
cents night-fare, with children of 51 inches, or under, in height
4 cents or 7 tickets for 25 cents and night-fare the same as
adults.
NOTE. — Complied by Toronto Star, Jan. 4, 1921.
THE ELECTRIC RAILWAYS AND STREET CARS OF CANADA 427
Some controversy as to rates and other matters developed
during this period with Mayor Church and the Council, but on
Aug. 31 the latter body finally voted by 18 to 10 to transfer the
System and the existent Civic lines to the Commission, and this
was duly done. In October there was published a statement of
the Commission's operations for the 12 months ending Aug. 31,
1921, and covering expenditures, on capital account only, for a
period of one year which had been devoted by the Commission
to preparation and organization prior to assuming actual con-
trol. It had received during this period, as installments of a
Civic grant of $10,000,000, the sum of $2,200,000. Of this total
the sum of $1,200,000 was received by the Commission on or
before Aug. 31, with expenditures of $249,574 on Equipment,
$363,478 on Stores, rails, ties, etc., $232,789 on property and
$132,075 on salaries and wages. Up to Oct. 27 a further advance
of $1,000,000 was made by the City.
Meantime, the Arbitration Board — composed of Hume
Cronyn, M.P., (Chairman) Sir Thomas White and Sir Adam Beck
— and appointed to assess the amount to be paid the Toronto
Railway Co. as compensation, had been sitting on the case; a
first result of the formal transfer being that the old Company
had not enough money available to redeem $2,275,000 4^ per
cent, bonds that fell due on Aug. 31. On Sept. 14 the Arbitrators
decided to limit the witnesses for the City to 24 and for the
Company to 24. Counsel for the latter (Hon. N. W. Rowell,
K.C.) contended that, on Aug. 31, "the whole system — tracks,
cars, power-houses and repair plants — was a thoroughly organ-
ized and efficient one"; W. J. Hagenah, Chicago, appraisal ex-
pert, valued the Railway properties at $20,447,612 — if exclusive
of real estate, defined as land, he put it at $19,491,676. On the
other hand, it was contended that immense and immediate
capital expenditures were required owing to the run-down
nature of the System ; that many additional lines and new tracks
would have to be constructed; that the rolling-stock was in a
deplorable condition. No decision was reached at the close of
the year.
The Montreal and Winnipeg Street Railways. The Mont-
real Tramways Co., Ltd., had in 1921 an effective control over
the Street transportation system of that city. E. A. Robert was
President; J. W. McConnell and Hon. G. G. Foster, K.C., were
Vice-Presidents ; the Directors were W. C. Finley, P. J. Mc-
Intosh, W. G. Ross, J. M. Mclntyre, Hon. J. M. Wilson and Hon.
Lome C. Webster; J. E. Hutcheson was General Manager and
Patrick Dubee Secretary-Treasurer. The annual Report for
June 30, 1921, showed a gross revenue of $2,411,329 and ex-
penses of $1,950,272; a dividend of 10 per cent, and Surplus of
$72,063 with $941,175 carried forward from 1920; a deferred
dividend of $96,529 was paid and the general Surplus remaining
was $916,709. During the year the Company had sold $150,000
of 5 per cent. Debenture stock and issued $1,000,000 of 5 per
cent. 30-year gold bonds.
428 THE CANADIAN ANNUAL REVIEW
Under the terms of its contract with the City, the Company
provided another yearly $100,000 for the Guarantee Fund of
$500,000 which then totalled $300,000; on Aug. 16th wages were
reduced by \2y2 per cent. The Assets of the Company were
$46,371,530 of which $43,211,978 were the cost of Road and
Equipment; the Liabilities included $40,807,106 of Common and
Debenture Stocks, 5 per cent, mortgage gold bonds and Under-
lying Bonds. In November it was announced that the Company
had successfully completed the sale of $1,750,000 of its 5 per
cent, first and refunding mortgage bonds to cover capital ex-
penditure already made. According to statements by Judge J. F.
Saint-Cyr, Chairman of the Montreal Tramways Commission
(Apr. 6) there were 51 lines of tramways traversing Montreal
and these were divided into three categories : 19 good, 14 me-
dium and 18 bad. The paying passengers were 183,350,923, the
miles of single line were 243 compared with 129 in Toronto and
the transfers were 65,711,288 and in Toronto 70,446,128.
The Winnipeg Electric Railway Co., of which Sir Augustus
Nanton was President, A. W. McLimont, Vice-President and
General Manager, and F. Morton Morse, Secretary, had gross
earnings in the year of Dec. 31, 1921, totalling $5,418,023; its
Operating expenses — excluding Depreciation — were $3,559,380
and the Income available for Fixed charges $2,020,050; the Net
Income after deducting various charges, taxes, etc., was $928,-
964. There was an increase of $181,323 in gross earnings and
$132,389 in net income — despite industrial depression and a di-
minished use of electricity, gas and traction services. From the
profits were deducted dividends on Preference stock, and an
additional allowance for depreciation, with $422,941 carried to
Surplus account. The Report concluded by saying that: "The
Company has continued its policy of maintaining good relations
with the public and has given wide publicity to the problems
confronting it so that all patrons may be acquainted with the
conditions surrounding the operation of the properties."
During the year there were the usual differences between
the City and the Company; on Apr. 4 the City Council decided
to enter into general negotiations with the Company, without
prejudice. The jurisdiction of the Public Utilities Commission
over the Railway and the possibility of the Company obtaining
control of all the Power interests of the City were important
objects of dissension. The Committee appointed by the Coun-
cil finally made a new Agreement with the Company and this
was approved by the Council on July 22. It established a fresh
schedule of fares which represented a reduction in the charges
and was to come into force on Aug. 1st. The Company's appeal
to the Privy Council from the decision rendered by the Mani-
toba Court of Appeal granting it an increase in rates as allow-
ed by the Public Utilities Commission, was withdrawn; By-law
543 embodying the original Agreement between the City and
the Company and giving the City Council control of its own
THE ELECTRIC RAILWAYS AND STREET CARS OF CANADA 429
streets was to be maintained in its entirety except as to fares;
an annual revision of the fares was provided for, with arbitra-
tion if necessary ; all agreements and dealings between the City
and the Company were to be placed beyond the jurisdiction of
the Public Utilities Commission; the rights of the City at the
termination of the franchise in 1927 were to be in no way af-
fected.
The British Columbia and Other Electric Companies. The
Provincial change in the rule of the road from left to right, as
generally practised on the Continent, caused the B. C. Electric
Railway, Ltd., of Vancouver and Victoria, some trouble and
expense in 1921 ; its 24th annual meeting was held in London
on Jan. 20, with G. P. Norton presiding; it was pointed out that
dividends had been paid on the Preferred or Deferred ordinary
stock since 1914-15; the statement showed that in 1908 the
capital, including debentures, was £1,880,458; in 1910 it had in-
creased to £3,535,341; in 1912 to £6,164,855; and since then had
grown to £8,913,870. Mr. Norton stated that: "We should be
satisfied with the results achieved this year if we were assured
of being permitted to carry on our business permanently under
reasonable conditions, x x x We realize, and British Co-
lumbians must realize, that pre-war returns are not sufficient
to attract capital for the development of public utilities such as
ours — the growth of which is inevitable if the districts we serve
are to receive in the future the services they have been accus-
tomed to in the past — and that we must be allowed to earn a
return sufficient to attract capital at the current market rates."
As to this it was stated that, in 1920, 9.361 freight cars were
handled compared with 7,463 in 1919; there were in Britain
12,000 separate holders of stock in this Company.
Meantime, popular efforts for reduced fares were being
made and, as to this, George Kidd, General Manager, told the
Vancouver Council, on Feb. 4, that: "It is impossible for the
Railway to operate on less than a six-cent fare under present
conditions. The fare was raised to pay increased wages and
will have to be retained unless wages are cut. Additional
capital to enable the Company to keep pace with the growth of
Vancouver cannot be raised until the fare question is definitely
settled." Hence the Company's desire to be placed under the
Dominion Railway Commission, following the collapse of the
Provincial Utilities Commission and the legal necessity of re-
verting to a 5-cent fare on July 1st — under which, it was main-
tained, the Company could not operate. The policy of the Com-
pany was embodied in the application of the Vancouver, Fraser
Valley & Southern Railway to extend its Dominion charter in
order that it could purchase the B. C. Electric Railway Co. busi-
ness on the Mainland and Vancouver Island. Such a move would
take the Company out of the jurisdiction of the cities concerned.
The whole matter came before the Union of B. C. Muni-
cipalities on Feb. 10, and, in an elaborate statement submitted
430 THE CANADIAN ANNUAL REVIEW
by the Company, the various complications were reviewed and,
especially, its recent acquisition of the Western Power Co., a
step "absolutely essential if the continuity and reliability of our
power supply on the mainland is to be maintained." But, it
was added: "If we are to continue to carry the responsibility
for the supply of power, light, transportation and gas in the
districts we serve, very large sums of money will be necessary
in the near future. This money cannot be raised under the
present wholly unsatisfactory conditions." The Union, how-
ever, decided to oppose the application because of possible
danger to Civic control of streets ; eventually it was withdrawn
with the Vancouver Council agreeing to a 6-cent rate until June
30, 1922.
Long negotiations followed and an agreement between the
City and the Company was tentatively accepted by the Council
on May 4; a Resolution of the Board of Trade (June 28) op-
posed its terms and urged control of the Company by the Rail-
way Commission; the Union of Municipalities at Alberni (Sept.
1st) asked for legislation reviving the B. C. Public Utilities Com-
mission. More opposition in Vancouver developed and the
Agreement never became effective, though time, ability and
skill had been put into its preparation. As finally published,
the year's earnings of the Company (June 30, 1921) were over
$9,500,000, or an increase of $824,250; the net earnings gained
to the extent of $143,929. The Company in 1920-21 carried 71,-
065,275 passengers, as compared with 66,411,030 in 1919-20. In
1920-21 it delivered 140,285,620 K.W. of electric energy for light
and power as compared with 120,173,919 K.W. in the previous
year. In 1920-21, 45,770,600 cubic feet of gas were sold as com-
pared with 41,746,000 the previous year.
As to other Street Railway Companies, the Ottawa Light,
Heat and Power Co., operating the Ottawa Street Railway, had
a gross revenue (Dec. 31, 1921) of $1,652,051, operating ex-
penses of $1,108,673, net earnings of $320,261, and Surplus of
$110,261 ; the total Assets were $9,214,207. The Ottawa Elec-
tric Railway lines and equipment were valued in a Report (Nov.
14) by T. W. Fairlie, Engineer of the Hydro Electric Commis-
sion, at $4,110,922, and, as the franchise lapsed in August, 1923,
the matter was of importance. On Dec. 17 it was stated that
the Company was willing to accept an agreement calling for a
5-cent fare, should a majority of the electors pronounce in
favour of another contract for a period not exceeding 30 years.
The Hamilton Street Railway was operated by the Do-
minion Power and Transmission Co., Ltd., of which Lieut.-Col.
J. R. Moodie was President and Cyrus A. Birge Vice-President,
W. C. Hawkins, Managing-Director, and E. P. Coleman, General-
Manager. The Report for 1921 showed gross earnings of $3,-
758,947, Operating expenses of $2,846,287 and Profits of $407,-
357; the Assets were $23,979,464 and the Liabilities included
Capital stock of $11,395,600; the Net Surplus was $1,347,885.
AVIATION IN CANADA; CONDITION AND PROGRESS IN 1921 431
The N. B. Power Company of St. John had much trouble with
its employees during the year and the decision of a Concilia-
tion Board, in June, which suggested slight wage reductions,
was denounced by the management and a scale of wages was
posted along lines which it deemed necessary; a strike followed
on June 29 and lasted for a month ; the Company's general policy
was stated on July 22 as a 5-cent fare, new cars, and adequate
trackage properly looked after.
The development of ./Erial traffic during this
Aviation in year was rapid in some respects, slow in others.
GeneraY Governments, whether in Canada, or Britain, or
Conditions *ne United States, did little in helping Civil avia-
and Progress tion and the depression made it difficult to get the
During 1921. necessary private capital. The British concern
operating from London to Paris had great success
for a term in 1920 and 1921 ; the popularity of the trip grew
greatly and during Aug. 22-28 of the latter year the Company's
machines crossed 114 times, carried 544 passengers and over 50
tons of mail and express ; then the French Government gave a
heavy subsidy to its own Aviation service and this new com-
petition made results doubtful.
March had marked the low-tide of commercial flying in
England, and during April-September, 1921, the mileage flown
was 321,500, the number of passengers carried was 31,853. From
May, 1919, until September, 1921, British commercial planes
had made 81,155 flights, travelled about 1,915,200 miles and
carried 142,341 passengers ; between Aug. 26, 1919, and Nov. 30,
1920, according to the British Air Ministry, the value of Air
imports was £685,054 and of exports £344,876— about $5,000,000
altogether. Following the subsidies granted by the French
Government, air-transport Companies were formed to carry on
regular services, a number of routes were organized, including
Paris-London; Paris-Brussels; Paris-Strasbourg; Paris-Prague,
and to other European centres. In Belgium the development of
Civil aviation was considerable and the National Syndicate for
the Study of JErial Transport organized daily air mail and pass-
enger services between Brussels, London, and Paris in conjunc-
tion with British and French companies. Germany subsidized
aircraft firms and two of its great Steamship lines were active
in financing the movement.
Great Britain, after seeking in vain for Dominion aid in
creating an Imperial Military and Naval Air system, practically
abandoned the effort so far as dirigibles and air-ships were con-
cerned ; the Imperial Conference discussed the subject but with
no definite results except in Australia which took great interest
in the proposals. A. H. Ashbolt, Agent-General for Tasmania,
suggested a detailed and apparently practicable scheme and Mr.
Premier Hughes obtained a vote of £200,000 from the Common-
wealth Parliament to establish an experimental Service between
432 THE CANADIAN ANNUAL REVIEW
Australia and Great Britain. Meantime, a volume of proof
seemed to show that, while British airships were excellent for
scouting, for passenger trips and for carrying goods up to a
certain point, yet the costs of construction, maintenance and
operation were too great to warrant present development on a
large scale. In Australia the expenditure on aircraft during
1921 was $2,500,000 with 12 seaplanes and 9 flying boats pur-
chased and an Air Force establishment of 1,486 — the vote in
November, however, being reduced by one-half. Meanwhile,
the Australian Government was using aircraft for long-distance
postal and limited passenger services between the chief centres,
and, by the close of the year, there were 3,000 miles of postal
and commercial serial highways in operation.
The United States showed marked development in Civilian
flying with about 20 per cent, increase during the year — accord-
ing to a Report of the New York ^Eronautical Chamber of Com-
merce. It was added that : "The U. S. Air Mail Service in 1921
made such a record for efficiency on the transcontinental route
that it is recognized as a model for civilian aerial transport the
world over. The Service has an average of 8882 per cent, ef-
ficiency, that is, completed trips on scheduled time since it was
started in May, 1918. The Air Mail has, during the last year,
completed its wireless communications system — the 14 stations
having Radio plants." During the year Aviation units were
organized in many State National Gua'rds ; improvements were
affected in designs, engines and operation ; the Government was
asked to establish a Bureau of Civil Aviation in the Department
of Commerce and a Bill was prepared to this end ; the Navy
launched a seaplane at Philadelphia, preparatory to equipping
surface craft with fighting and scout planes; the Bureau of
^Eronautics was organized by the Navy Department, and the
various divisions of Naval aviation co-ordinated; the 1st Air
Brigade was organized by the Army Air Service.
Summing up American Civil progress, it may be added that
during 1921, 1,200 airplanes operated by civilians, throughout
the United States, carried approximately 275,000 passengers a
total of more than 6,500,000 miles in the air. The new Military
Air Brigade, under Brig-Gen. William Mitchell, was inspected
in Virginia, on June 11, with 120 war-planes of varied character
in use. The Navy Department, later in the year, reported that
U. S. vSeaplanes carried during 12 months 6,814 passengers a
distance of 95,020 miles without a single accident or mishap ; in
addition to this the flying boats operated by this Service trans-
ported 29,002 pounds of mail and freight.
Canada made some progress during the year, but not as
much as friends of Aviation had hoped. The Government noted
the progress made in the United States and the large number
of aeroplanes and airships under use there — with over 300 oper-
ating along the Canadian border — and, in May, issued instruc-
tions to all aviators operating aircraft in the United States that
AVIATION IN CANADA; CONDITION AND PROGRESS IN 1921 433
they could not fly into the Dominion without specific permission
from the Canadian Air Board. The Canadian Air Board at this
juncture consisted of the Minister of Militia and Defence (Mr.
Guthrie) as Chairman, and O. M. Biggar, K.C., as Vice-Chair-
man; Maj.-Gen. Sir W. G. Gwatkin as Instructor-General;
Lieut.-Col. R. Leckie, D.S.O., D.S.C., D.F.C., as Director of Flying
Operations; Lieut.-Col. J. S. Scott, M.C., A.F.C., as Controller of
Civil Aviation ; Capt. W. Hose, c.BX, Director of the Naval Ser-
vice, and E. Deville, U..D., Surveyor General. The 1st annual
Report of this Board (1920) stated its objects as: (1) The
regulation of Civil Aviation; (2) the conduct of Civil Govern-
ment operations; (3) the air defence of Canada, including or-
ganization and administration of the Canadian Air Force.
During that year 284 temporary and 324 permanent cer-
tificates had been issued ; much work was done in locating routes
for air-travel and 7,350 miles of routes were flown over and sur-
veyed; 30 firms were reported as operating aircraft and one
in manufacturing them ; the number of machine-made flights in
Canada was 18,671 with 14 accidents reported; Air regulations
were issued and proved satisfactory in practice. At Camp
Borden, the Government Flying-ground for the Force, an ex-
cellent training system was in operation with 86 officers and 111
airmen completing their training in the last three months of
1920. At the beginning of 1921 there was a Branch of the Cana-
dian Air Force Association in each Province with the following
Chairmen: Alberta — His Honour R. G. Brett, Edmonton; Brit-
ish Columbia — H. Bell-Irving, Vancouver; Manitoba — D. C.
Coleman, Winnipeg; Maritime Provinces — Flight Lieut. L. E. D.
Stevens, Halifax; Ontario — Lloyd Harris, Toronto; Quebec —
Colonel J. A. Scott, Quebec; Saskatchewan— Brig.-Gen. G. S.
Tuxford, C.B., C.M.G., Regina.
The Canadian Government did not subsidize any commercial
air services but it organized the existing material into an Air
Force and aided in establishing the above Association; it sup-
plied Camp Borden as a training and flying field, surveyed air
routes and provided emergency landing grounds ; it established
an Operations Branch for the purpose of carrying out such
flying operations, with heavier-than-air machines, as were re-
quired for the various Departments in relation to forests, fish-
eries, surveys, customs, etc., and for scientific experimental
work ; it loaned airships and lighter-than-air equipment to com-
mercial companies. Canadian Air certificates in force on Sept.
30, 1921, were 475 and, at this date, it was reported by the Air
Board that commercial aviation, though still in its infancy, was
making considerable progress. During 1920, 18,671 flights were
made and 6,505 machine hours flown; 15,265 passengers and
6,740 pounds of freight were carried and, in 1921, 22 commercial
firms were operating over 60 machines.
In addition to passenger-carrying and exhibition work a
number of large industrial firms were operating aircraft as
15
434 THE CANADIAN ANNUAL REVIEW
auxiliaries to their normal work. Lumber and pulp companies
were particularly interested and several machines were operated
by them for fire protection, forest survey, transportation work
and exploration. Experimental operations in conjunction with
the Forestry and Fishery Services and various Survey branches
were carried out by the Air Board in 1920 with 398 flights cover-
ing 33,612 miles. This work was greatly extended in 1921 and
from Apr. 1st to Sept. 30, 1.011 flights were made covering a
total distance of 157,413 miles. Work at Vancouver, Sioux
Lookout and Lake St. John was undertaken in conjunction with
the British Columbia, Ontario and Quebec Governments, re-
spectively.
The work of the Canadian Air Force in 1921 was steadily
improved, with organization and training progress satisfactory.
This was mainly confined to keeping officers and men who had
served in the Air Services during the War in touch with flying
by the provision of "refresher courses," carried out at Camp
Borden, Ont. During the year of Oct. 1st, 1920, to Sept. 20,
1921, a total of 407 officers and 840 men received this training;
combined operations in conjunction with the Militia and Naval
Force were carried out in different parts of the country during
the Militia training season. The terms of service in the Force
included enlistment for 4 years with a training duty of 28 days.
Periods of staff duty at Camps were optional to recruits and
these periods extended from three to six months, or less if ser-
vices were no longer required. The rates of pay were as fol-
lows: Warrant officer, $2.05; flight sergeant, $1.80; sergeant,
$1.45; corporal, $1.25; first air mechanic, $1.15; second air me-
chanic, $1. Airmen employed on staff duties received double
the above rates. Toward the close of the year there were 33
Air Harbours licensed and in operation.
The general subject of Aviation was discussed in the Com-
mons on May 23, when Estimates were presented for Air Force
salaries and contingencies of $100,000, Civil Aviation $700,000,
and the Air Force $825,000. Mr. Guthrie, Minister of Defence,
stated that the 1920 expenditures (the first year) had been
$375,000 larger than the above figures ; gave details of the Air
Board's operations in surveying Northern Quebec, in taking air
photographs of that and other sections of the country, and in
fire-ranging through the forests and explorations on the coasts
of British Columbia ; described similar operations elsewhere
and the charge of Naval air stations at Halifax, etc. A. R. Mc-
Master opposed the whole policy indicated as extravagant and
unnecessary, Hon. Mackenzie King criticized details, S. W.
Jacobs deprecated the expenditure and thought much of it
should be borne by the Provinces; William Duff did not see
adequate returns for the money. The items, however, passed
in due course.
Incidents of the year included the formation at Montreal of
the Commercial Air Pilots' Association of Canada, which had
AVIATION IN CANADA; CONDITION AND PROGRESS IN 1921 435
for its aim the elevation of Aviation standards ; the free use of
aeroplanes by the Imperial Oil Co. in its far northern explora-
tions and work and, especially, at Fort Norman and in Peace
River areas — with Capt. F. T. McCall, D.S.O., M.C., D.F.C., in charge
of the latter; the creation of special training stations — at
Jericho near Vancouver for Western men and at Halifax for
Easterners ; arrangements under which all aircraft, officially
certified for commercial use in Canada, were included in Lloyd's
Aircraft Record book, which was to aircraft development what
Lloyd's Marine Registry was to the Shipping industry ; the
opinion of C. C. Grey, Editor of The Aeroplane, that "one has little
hesitation in making a perfectly definite statement that the
Dominion of Canada is far ahead of any other British Dominions
in her flying organization and records" ; the flight in June of the
Imperial Oil Company's monoplane between Peace River and
Fort Norman (1,400 miles) in 13 hours and 40 minutes of actual
flying time ; the declaration by J. A. Wilson, Secretary of the
Canadian Air Board, at Victoria, on Aug. 18, that "we have not
yet arrived at the period when aircraft can successfully com-
pete with other means of transportation in this country, except
in emergency cases, but we believe this will come later."
It was claimed at the time when the great American Air-
ship ZR2 was lost in England that had Helium been used in-
stead of Hydrogen, much of the loss of life would have been
averted, and the Toronto Globe of Aug. 26 reviewed the fact
that Prof. J. C. McLennan of the University of Toronto had
found vast quanties of Helium in Canada. In connection with
the projected round-the-world trip of Sir Ross Smith — which
his death afterwards prevented — the Canadian Air Board had
mapped out a combined seaplane and aeroplane route across the
Dominion from Kodiak Island, Alaska, to St. John's, Newfound-
land— a total distance of 3,755 miles over Canadian territory
with stages averaging 400 miles each. Meanwhile, Air patrols
— Government or private — were doing excellent work in check-
ing forest fires, in surveying unknown and difficult regions, in
geological research work, in guarding forests generally and
pulp-wood in particular, in prevention of drug and whiskey
smuggling, in aiding the work of the Forestry Engineers as a
whole.
On June 22 the 1st Convention of the Canadian Air Force
Association was held at Camp Borden, with 30 inter-Provincial
delegates present and addresses from Sir W. G. Gwatkin, Maj.-
Gen. MacBrien and Capt. W. Hose. Reports were submitted on
various phases of the work ; recruiting was discussed and the
consensus of opinion was in favour of longer periods of train-
ing, with certain increases in pay ; in commercial Aviation, the
Air Board stated that the best results could be obtained by
running air routes as auxiliaries to present transportation sys-
tems ; Aviation figures, sent out by the Air Board, were praised
and further Research work in Universities urged. Lieut. -Col.
436 THE CANADIAN ANNUAL REVIEW
O. M. Biggar presided. It was announced, on June 21, that
Wing-Commander J. S. Scott, M.C., A.F.C., was to be Officer
Commanding the Air Force, and Squadron Leader J. L. Gordon,
D.S.C., Officer Commanding Camp Borden. The term in com-
mand of Fl. Com. A. K. Tylee had expired in April and it was
understood that Fl. Com. Redford H. Mulock, D.S.O., and Bar, of
Winnipeg, had declined the position.
At Camp Borden, on Nov. 30, General Gwatkin formally
presented their new Colours to the Air Force and stated that
just as His Majesty's Canadian ships had a right to fly the
white ensign of the Royal Navy, so the King had given the
Canadian Air Force the right to fly the white and blue ensign
of the R. A. F. : "It was Air Marshal Sir Hugh Trenchard who
obtained for us this privilege. I will tell him how proud we are
of our flag, and that we will be true to its tradition and all it
stands for." Further incidents included the election of Lieut.-
Col. Thomas Gibson at Toronto, as President of the Aero Club
of Canada ; the demonstration flight in August of 1,000 miles
around Lake Winnipeg and the Saskatchewan River Valley,
with the statement by Dr. Wallace, Commissioner of Northern
Manitoba, who accompanied the expedition, that "as a patrol
agency, and particularly for systematic mapping of the whole
Northern territory, I feel that there is a great future for this
Service."
This value in airships was further demonstrated in Sep-
tember when, at the request of the Dominion Parks Branch, an
aeroplane was despatched to Jasper Park in the heart of the
Canadian Rockies and three experimental flights carried out
over that area, with the discovery of unknown Lakes and river
valleys and much information obtained as to timber areas ;
the photographic survey of the St. Lawrence River and Canal
System from Brockville to Montreal, undertaken by an aero-
plane— from the Ottawa Air Station for the International Joint.
Commission — also of the Waterton Lakes district and the
courses of the international waters in Southern Alberta; the
Reports to the Air Board and other bodies from Forest Inspect-
ors, Departmental engineers, Dominion Park Superintendents,
Geological Survey officers, as to the great value of Aviation aid
in respect to varied kinds of work in the forests or wilderness
of the North.
Like the greater transportation problems of
The High- Canada, this phase of the subject attracted much
C^y8d°f- Th attention durmg" the year. The increasing use of
Better*' * trucks in the carriage 'of goods, the ever-growing
Roads Ques- uses °f niotor-cars in travel and lighter forms of
tion in 1921. transport, the increasing motor tourist traffic in all
the Provinces, the growing demands of the farmers
for better highways and their increasing use of the automobile,
made better roads an absolute necessity. Everywhere these
THE HIGHWAYS OF CANADA; THE BETTER ROADS QUESTION 437
conditions were developing. In England it was estimated by
Lord Montagu of Beaulieu — an authority on transportation —
that the width of many of the most used main roads would have
to be doubled before long to take at least four lines of traffic;
five years hence, he declared, there would be about 2,000,000
motor vehicles of all kinds in the country as against the current
total of about 800,000.
In the United States the total sum appropriated and used
in 1920 for Highway purposes, under Federal auspices, was
$200,000,000 and under State jurisdiction $265,000,000; the result
was 28,000 miles of improved roads. One of the difficulties faced
there was in conflicting demands and these, also, were found in
Canada. The farmers wanted roads from shipping points and
agricultural centres to the productive centres ; the manufactur-
ers and city merchants wanted roads to facilitate transporta-
tion of raw materials and manufactured commodities flowing to
and from cities ; tourists and others whose interest in roads
was confined to the pleasure side of the subject mainly desired
a system of smooth, hard-surfaced roads connecting the cities
and points of interest; in addition, the U. S. Government was
considering the utility of the roads in the event of war as sup-
plemental arteries of traffic to the railways and waterways —
though this was not done in Canada. At the American Good
Roads Congress, Chicago (Feb. 8), it was estimated that, from
all sources, there was about $622,000,000 available for Highway
work in 1921, and President Harding of the United States sent
a letter in which he used words almost equally applicable to
Canada :
Our civilization depends on communication and transportation, and
as it becomes increasingly complex, that dependence increases. Every
great community is held together by its means of transportation and so
vast a country as ours is the more in need of ample facilities. Our
country roads we have not kept pace with. The development of other
transportation — railroads, waterways, our new merchant marine — cannot
be of the fullest utility unless good country roads supplement them.
In Canada, during 1919 and 1920, the prices of materials,
contractors' supplies and labour on Highway construction pro-
jects were at unprecedented figures and the different Provincial
Departments were uncertain as to the justification of under-
taking large Road improvements — even where the desirability
was admitted and the co-operation of the Dominion Govern-
ment was accorded. Conditions improved greatly, in 1921, how-
ever, and various Provincial arrangements were completed
under the Dominion Act of 1919 by which an appropriation of
$20,000,000 was authorized to aid Provinces in the construction
and improvement of main and market roads, with a view to
facilitating travel, improving transportation, encouraging pro-
duction and stimulating trade and commerce.
This legislation divided the amount among the Provinces on
the basis of population, and provided that the money should be
438
THE CANADIAN ANNUAL REVIEW
available for a period of 5 years in order that each Province
could prepare a comprehensive system and obtain necessary
legislation. The appropriation was to be available at the rate of
40 per cent, of the cost of plans arranged by the Provinces and
approved by Ottawa; the Provinces therefore would have to
provide $30,000,000 to meet the Federal $20,000,000. At the
beginning of 1921 Provincial legislation making full provision
for this construction had been enacted and the total amount
was available with about 17,000 miles comprised in the proposals.
A. W. Campbell, C.E., had, meanwhile, been appointed Federal
Commissioner of Highways and the Provincial plans and speci-
fications had been greatly facilitated by his work. According
to a statement which he issued in August the full programme
was as follows:
Province
P. E. Island
Nova Scotia
Estimatec
Mileage
850
1,297
1
CoSt -r
850,000
12,493,700
Federal
Appropriation
603,455
1,468,720
Provincial
Requirement
$ 246,545
11,024,980
1,595
2,914.612
1,163,845
1,750,767
Quebec
Ontario
Manitoba
1,433
1,824
4,000
17,390,000
22,200,000
6,602,265
4,748,420
5.877,275
1,602,265
12,641,580
16,322,725
5,000,000
Saskatchewan
Alberta
British Columbia
2,500
2,475
1,977
5,329,500
3,694,525
10,015,050
1,806,255
1,477,810
1,251,955
3,523,245
2,216,715
8,763,095
Total 17,951 $81,489,652 $20,000,000
$61,489,652
The only control taken by the Federal Department was as
to the plans, etc. ; under the Canadian system, Roads were with-
in the jurisdiction of the nine Provincial Governments, and each
of them had an independent Highway Department or one as-
sociated with a Department of Public Works. Provincial legis-
lation also had tended to convey to the local municipalities a
large measure of road control, with the exception, however, of
Nova Scotia and Prince Edward Island. It may be added that
the total length of Canadian roads — good, bad or indifferent —
was estimated at 250,000 miles ; there were about 160,000 more
miles of surveyed road area upon which some work had been
done but which were really little more than trails ; the total
410,000 miles were estimated by S. L. Squire, lately President
of the Canadian Good Roads Association, to require a right-of-
way of 3,280,000 acres and to represent an investment in land
of $164,000,000; the improvements already made represented in
cost and including statute labour, bridges and ferries — the latter
being a part of the Road system in some Provinces — not less
than $1,000 per mile or a further investment of $410,000,000.
To the $50,000,000 involved under Dominion and Provincial
co-operation it was estimated during the year that $30,000,000
would have to be added to bring the whole 'system of roads con-
cerned to a good standard of efficiency. The project was not an
easy one to handle; there were nine different Executives con-
cerned and varied local conditions as to construction, traffic,
labour, wages and even politics ; there were differences of agri-
cultural and industrial requirement to harmonize ; the types,
THE HIGHWAYS OF CANADA; THE BETTER ROADS QUESTION 439
standards and character of existing roads varied in many Prov-
inces as did the nature of the traffic. The total expenditure by
Dominion, Provinces and municipalities during 1920 and 1921
was not less than $80,000,000, The fruits of this expenditure
were not yet organized in a National sense, though the co-
operation of the Dominion and Provincial Governments was
helping to that end.
There still was much division of aim and splitting of ener-
gies. In Montreal, for instance, there was an organization
working for "the Canadian National Highway"; in Winnipeg
another with energies bent on "the All Red Route" to cross the
Dominion; in the southeast of British Columbia motor literature
dealt with "The Inter-provincial Highway," while in Vancouver
there was a Committee dealing with "The Canadian Highway."
In Toronto there was an active coterie working for a Canadian
transcontinental road of varied names and detail. There was,
also, a Central Canada Highway Association with a general pro- ,/
gramme along these lines. The G. W. V. A. Executive, by Reso-
lution at a Port Arthur meeting (July 6), declared for the con-
struction of a grand national Highway from coast to coast of a
uniform specification throughout. About the same time the
Calgary Auto Club started a Petition urging the construction
of a National Highway across Canada ; at Victoria, on Aug. 5, a
Canadian Highway Committee was appointed by the Chamber
of Commerce, at suggestion of A. E. Todd, for the promotion
of a continuous Highway across the Dominion from Cape Scott
at the northern tip of Vancouver Island to the most easterly
extremity of Nova Scotia.
The Quebec roads at this time were amongst the best in
Canada ; those of Manitoba and Alberta were in good condition
and well-looked after ; Ontario, under Mr. Biggs' direction, was
developing very ambitious plans; New Brunswick also made
excellent progress during the year. The value of linking up all
these projects and expenditures was illustrated in the Akron,
Ohio, and Boston motor freight service. The round trip by rail
was 1,480 miles and from 10 to 14 days ; a one-way trip by truck
was made in 4 days. A truck from Akron made a 533 mile run
to New York in January, 1921, in 49 hours actual running time,
crossing the Alleghany Mountains in a snowstorm, and with a
temperature of 13 degrees below zero. Similar possibilities in
Canada were painted by Highway enthusiasts in glowing terms.
The Canadian Good Roads Association. Organized at Mont-
real in 1913 and incorporated in 1917, the objects of this body
were as follows : "To collect and distribute information con-
cerning Highway legislation, construction and maintenance, in
the various cities, towns, villages and municipalities throughout
Canada ; to stimulate and encourage in all ways the improve-
ment, construction and maintenance of roads ; the whole from
an educational and practical standpoint." During 1921 meetings
were held in all the Provinces and the 8th annual Convention
440 THE CANADIAN ANNUAL REVIEW
was at Halifax on May 10-12, with the President, Dr. E. M.
Desaulniers, M.L.A., of Montreal, in the chair. After a reference
to preceding Conventions at Winnipeg, Toronto, Hamilton,
Montreal and Quebec, the Chairman stated that the two chief
points in the Highway problem were (1) that in financing it
any Government that borrowed money for a certain period and
extended the period of loan beyond that for which bonds were
issued, would make a grave mistake; (2) that roads should be
kept in good repair, or otherwise the surface as well as the
foundation were gone before necessary repairs were made and
then the original investment was lost.
The Lieut.-Governor, Mr. Grant, Hon. E. H. Armstrong,
N. S. Minister of Public Works, Hon. J. A. Tessier, Minister of
Roads in Quebec, Mayor Parker of Halifax, and Mayor Porter
of Victoria, B.C., Hon. P. J. Veniot, Minister of Public Works in
New Brunswick, Hon. H. H. Wickwire, N. S. Minister of High-
ways; Hon. John Oliver, Premier of British Columbia; Hon.
C. W. Crosby, Minister of Public Works in P. E. Island; Hon.
G. S. Henry, lately Minister of Agriculture in Ontario; S. L.
Squire, lately President of the Association, and others, spoke at
the opening or other Sessions. The prevailing thought of all
speeches was that good roads were absolutely essential to the
progress of the country, indispensable to farmers, attractive to
visitors, tourists, investors and settlers and productive of in-
creased Government revenues. There was a varied programme
of addresses, papers, discussions and entertainment. On the
12th Dr. Desaulniers was elected Hon. President and Hon. S. J.
Latta, Minister of Highways, Regina, President; Russell T.
Kelley, Hamilton, and T. P. Regan, St John, Vice-Presidents ;
G. A. McNamee, Montreal, Sec.-Treasurer.
The proceedings of the Convention were unusually useful
in bringing together so many Provincial Ministers and leaders
in the advocacy of the cause; its discussions developed good
feeling and kindred aims in the Provinces and increased knowl-
edge of the common problem; Col. W. D. Schier, formerly
Chairman of the State Highway Commission of Massachusetts,
dealt in a most valuable way with bituminous treatment of
gravel and sand roads; A. P. Sandies of Columbus, Ohio, de-
clared that maintenance was the best investment in road-build-
ing and that the best way to maintain a macadamized road was
to build it right in the first place ; several Provincial Ministers,
while fully prepared to accept Federal grants, laid stress upon
the importance of maintaining the rights of the Provinces
against any encroachment by the Federal authorities. The
Inter-Provincial conferences held during the meeting were pre-
sided over by Hon. T. H. Johnson, Attorney-General of Mani-
toba, and were interesting and effective. Resolutions passed
were few, and included one in favour of the uniform system of
"drive to the right" for all the Provinces — adopted by Alberta
during the year with a B. C. Government appropriation of
THE HIGHWAYS OF CANADA; THE BETTER ROADS QUESTION 441
$400,000 to help meet the Tramway expenses of a similar change
in that Province ; another motion objected to long-term bonds for
Road financing as outlasting the Highway for which the money
was used. Among organizations represented were the Ameri-
can Road Builders' Association, the Ohio Highway Association,
the P. E. Island Good Roads Association and those of New
Brunswick, Ontario, Manitoba and British Columbia.
Canadian Motor and Automobile Interests. It was estimat-
ed upon good authority that the automobiles, motors and motor-
trucks in the Dominion during 1921 were worth a total of half-
a-billion dollars. The motor bus was coming more and more into
use and farmers were steadily acquiring automobiles during this
year despite the depression. Trucks between centres such as
Hamilton and Toronto were utilized for carrying varied goods
for wholesalers, retailers, manufacturers and householders, at
comparatively moderate rates ; but as yet no special rights over
specific highways had been asked or given, no strong companies
organized or special passenger busses, or motor trucks, de-
signed and made for large operations. During the ten years,
1911-20, Canadian progress, as registered in Automobiles and
motor trucks, had been as follows :
Saakatch-
Manit-
Nova
New
P. E.
Total
Year
Ontario
ewan
Quebec
Alberta
oba
B.C.
Scotia Brunswick Island No.
1911....
... 11,339
1,304
1,878
1,631
2,436
2,220
228
483
21,519
1912....
... 16,266
2,268
3,535
2,505
4,099
4,289
456
700
34,118
1913....
... 23,700
4,659
5,452
3,773
5,475
6,138
511
824
26
50,558
1914....
... 31,724
8,027
7,413
4,728
6,974
6,668
544
1,260
30
67,368
1915....
... 42,346
10,225
10,112
5,832
8,786
7,440
971
1,900
35
87,647.
1916....
... 54,375
15,600
15,347
9,703
11,953
8,576
1,728
2,986
50
120,318
1917....
... 83,790
32,500
21,702
20,800
17,472
11,386
5,678
5,249
301
198,878
1918....
..109,374
47,239
28,333
29,500
23,627
15,828
8,103
6,475
481
268,960
1919
..139,288
56,402
32,037
34,802
29,277
21,500
10,301
8,306
974
332,887
1920
..172,065
60,325
43,450
37,515
36,455
28,136
12,456
11,101
1,426
402,929
These figures placed Canada as the 2nd largest Automobile
user in the world, with the United States first, and followed by
Canada, New Zealand, Australia, Cuba and the United Kingdom
in proportion to population. In 1920 the Canadian increase of
passenger and commercial cars was 70,000, or 21 per cent. ; in
1921 the total number in use was 469,310 — an increase of 18^2
per cent. The additions of this latter year were mainly in the
industrial Provinces; the agricultural districts felt the depres-
sion more severely. As a Canadian industry, Automobile manu-
facturing stood at a production of $80,619,846 in 1919 and $101,-
465,846 in 1920; the Supplies and Accessories totalled, respect-
ively, $8,571,890 and $19,361,882; the Automobile repairs were
valued at $12,004,970 in 1919 and $16,592,623 in 1920. The num-
ber of Automobile manufacturing, supply and repair plants
(1920), according to the Dominion Bureau of Statistics, was
2,582, with a capital of $89,183,320, wages paid of $19,368,009,
cost of materials $84,432,444, and value of products $137,420,351.
The value of Pneumatic casings and tubes and solid Auto tires
manufactured in Canada during 1920 was $40,177,119; the num-
442 THE CANADIAN ANNUAL REVIEW
ber of Automobiles (freight and passenger) imported into
Canada in that period was 9,144, valued at $13,860,600, and the
value of Automobile engines and parts imported was $22,540,-
204; the number of Automobiles (freight and passenger) ex-
ported from Canada was 23,012, with a value of $16,635,235, and
the value of Automobile parts exported was $4,276,027.
An illustration of the importance of motor traffic to the
country was seen in the fact stated by the Collector of Customs
at Windsor that 352,534 machines left license cards with his
officers in 1920, that each car averaged three persons and that
each person spent at least $2.00 in Canada. This revenue col-
lection was a very obvious fact and not the largest of the re-
turns from motorists; registration and license fees in Canada
as a whole totalled $6,016,028 in 1920. Incidents of 1921 in-
cluded the Toronto Globe's statement (Apr. 23) that a motor-
bus had made a 2,000-mile tour of Eastern cities with 25 pass-
engers and all the latest safety and comfort devices; the con-
tinued advocacy by Dr. P. E. Doolittle, Toronto, President of
the Canadian Automobile Association, for a great 4,000-mile
trans-Canada Highway from Vancouver to Halifax; the initia-
tion of motor-bus transport in outlying parts of Toronto and
the alleged success of the system in certain American cities ; the
success of the General Motors Corporation, Oshawa, in concen-
trating upon Export trade with large preliminary shipments in
November and December.
The Motor Leagues of the country made distinct progress
in 1921. In Ontario, from 264 members at the time of organiza-
tion in 1907, the membership of the Ontario Motor League had
grown steadily year by year to a total of 20,016 in this year.
The objects of this organization were, briefly: "To maintain
the rights and privileges of those who use motor vehicles ; to
promote rational legislation governing the use of such vehicles ;
to assist in and encourage construction and maintenance of
good roads; to advocate a reasonable regard on the part of
motorists for the rights of others using the highway." The
efforts of the League had been successful in various directions
and included the obtaining of an automobile license exchange
between Ontario and most of the States in the American Union ;
arrangements for a 30-day touring permit, now given by the
U. S. Customs ; acceptance at Buffalo, Niagara Falls and Lewis-
ton, &c., of the League membership card as a certificate of
identification, in place of the Consular letter otherwise required.
The League, through representations to the Dominion Gov-
ernment, was instrumental in obtaining the provision of severe
penalties in cases of automobile stealing; it succeeded, also, in
getting the passage of a By-law in Toronto, requiring all
vehicles to carry lights at night, after June 1st, 1921. At the
end of 1921 it showed an increase of 8,901 members in the one
year ; it had 80 affiliated Clubs of which the leading ones in mem-
bership were those of Hamilton, Ottawa, London, Windsor,
WIRELESS DEVELOPMENTS OF 1921 443
Chatham, St. Catharines, Port Arthur, Brantford, Gait, Sarnia,
Peterborough and Kingston; the President was A. R. Grieve,
Toronto, in succession to W. Frank Goforth, a farmer and mo-
torist, and the Sec.-Treasurer was W. G. Robertson. Road im-
provement was a vital matter to all Motor Leagues and that of
Ontario joined actively in the campaign for good roads. Edu-
cational work was carried on extensively throughout the Prov-
ince and helped the appointment by the Government of the
Highways Department, with the subsequent adoption of large
plans of Highway improvement.
The policy and efforts of the other Provincial organizations
were much along the lines of Ontario with membership growing
in 1921 and influence largely exerted in strengthening the Good
Roads movement. They included the B. C. Motor League, Van-
couver; The Alberta Motor League, Medicine Hat; the Sas-
katchewan Motor League, Regina ; the Manitoba Motor League,
Winnipeg; the Quebec Provincial Motor League, Quebec; the
N. B. Automobile Association, St. John ; the N. S. Motor League,
Halifax; the P. E. I. Motor Vehicles Association, Charlottetown.
The Manitoba League, of which W. F. Tallman was President,
had a membership of 4,000 with 40 branches, and its platform
included the protection of motorists, an active Good Roads
campaign, and the placing of sign-posts on all possible routes.
The Nova Scotia League had 644 members, with F. A. Gillis as
President. The New Brunswick Association had about 800
members, and its President was T. P. Regan of St. John.
All were affiliated with the Canadian Automobile Associa-
tion, of which Dr. P. E. Doolittle of Toronto was President and
W. G. Robertson, Sec.-Treasurer. The annual Convention of
this body was held at Halifax on May 11 and opened by Lieut.-
Governor MacCallum Grant. Resolutions were passed (1)
favouring a Trans-Continental Highway; (2) approving the
co-ordination of Motor laws in the various Provinces; (3) ac-
cepting affiliation with the Royal Automobile Club of Great
Britain; (4) supporting a closer relationship with the U. S.
Motor Associations and encouragement of international tour-
ing; (5)' advocating increased Federal aid to Highways and de-
claring the $20,000,000 now available to be quite inadequate.
The Association worked in hearty co-operation with the Cana-
dian Good Roads Association ; its official organ was the Canadian
Motorist.
There were evidences of important growth in
Wireless De- ^g respect during the year, and the subject of an
of °W2ien Empire Wireless service was discussed at the Im-
perial Conference ; Australia showed great interest
in the matter, though its Prime Minister supported a private
Company's scheme in preference to that submitted by Sir Henry
Norman and his Special Committee. The Marconi Company had
made an Imperial Wireless proposal some years before this, but
444 THE CANADIAN ANNUAL REVIEW
it was rejected by the British Government as constituting a
monopoly ; Australia had, during the past ten years, spent money
on a Land wireless policy with a total expenditure of about
£750,000, which included a capital investment in land and build-
ings of about £100,000. It was now asked— and Mr. Hughes
seemed to favour the proposal in a speech at Melbourne on Oct.
5_by the Amalgamated Wireless Co. of Australia to expend
£500,000 upon a direct Service to Great Britain with Government
control, a promised return of 10 per cent, and a reduction of
one-third in the present cost of communication.
Mr. Hughes was a strong believer in Wireless telephony
at this time and hoped soon to be able to talk to London. The
above plan, if carried out, was to be part of a wider scheme
under which there would be an Imperial wireless chain through
certain portions of the Empire and composed of links 2,000
geopraphical miles in length. Stations were to be established
at Oxford, Cairo, Poona, Singapore, Hong Kong, and Australia,
and also at Nairobi and Wynhoek, in Africa, at a capital cost
which was estimated at £1,243,000. Mr. Kellaway, British Post-
master-General, stated, on Nov. 20, that the latter policy was
partly under way and that the first two stations, at Leafield and
Cairo, would be completed and working by the end of the year.
In Canada developments took the form of Wireless tele-
phony. The Marconi Company stated at Montreal, on Sept. 8,
that they had been considering for months the establishment of
a system of Wireless communication, in the Oil fields particular-
ly, and in the North West Territories generally; that the Com-
pany had studied the situation at Fort Norman and realized the
immense value of such communication between the Oil fields
and Edmonton; that they had got together five complete sets
of the most modern and finest equipment possible and proposed
to establish a chain of five stations at Edmonton, Vermilion,
Fort Resolution, Fort Simpson and Fort Norman; that they
applied, on Aug. 16, to Ottawa for a license but were unable to
get one. Meantime, it was stated by the Montreal Star of Sept.
22, the amateur Wireless idea had been taken up by the boys
in that city, with about 600 operating air telephones o^ a crude
nature ; from Edmonton, on Oct. 29, came what was claimed to
be a world's record for land transmission of Wireless telephony
when a concert programme, sent out by wireless from San
Francisco, was picked up and distinctly recorded — with the two
points over 1,400 miles apart; at Campbell River, B.C., a Colonist
representative reported a gramaphone in use as picking up music
and voices over considerable spaces of land and across the Gulf
of Georgia.
THE DOMINION
GENERAL ELECTIONS OF 1921
The political atmosphere of the year was one
Mr. Meighen of Elections. The Liberal and Progressive leaders
and the Gov-
ernment's
Policy:
Issues of
urged an appeal to the people; the bye-elections
were keenly fought, and the main topics of rail-
ways and tariffs were continuously discussed; the
the Conflict, position of the Meighen Government, despite the
Prime Minister's debating skill in Parliament and
many speeches in the country, grew weaker rather than stronger,
and before Dissolution its majority had fallen to 21 with 8 seats /
vacant. In 1911 the Conservative majority had been 45, and in /
1917 that of the Union Government was 71. The Meighen Gov-
ernment was, during the whole year, attacked from two angles
— that of the Liberals with old-time Party ammunition and
every possible effort to bring back the Liberal Unionists to the
fold, and that of the Progressives with a direct appeal to the
Farmers of the country and with a large and growing United
Farmers' organization behind Mr. Crerar. In Quebec there was
a steady and successful effort to preserve the Liberal bloc and to
emphasize antagonism to Mr. Meighen and the Conservative or
Unionist parties.
The Government was handicapped by the depression which 0
affected so many interests in the country, and by the heavy taxa- G*
tion which war and reconstruction had rendered necessary; by
a West which was supposed to be behind the Progressives and a®
Quebec said to be assured to the Liberals; by American tariff g)
action which hurt the farmers, especially, and which was not
met by any appeal to the anti-American feeling which might so
easily have been aroused ; by a railway policy which involved,®
for the moment, huge and inevitable deficits ; by Agrarian and©
Liberal attacks upon the Government as the alleged friend and
patron of vested interests and financial monopoly, while many
of these very interests were seriously estranged through the
Government ownership of Railways' policy; by the passing,;,
since 1917, of the Ontario, New Brunswick and P. E. Island
Governments out of Conservative party control and through v>'
the loss of 8 seats in bye-elections since that year. There was
no doubt about the importance of the contest; in it lay con-
siderations touching political, financial, industrial and com-
mercial interests. All the parties had definite platforms; that
of the National Liberal and Conservative (Government) dated
from 1920, that of the Liberals from 1919, that of the Pro-
gressives from 1918;* how far the respective Parties stood upon
their Platforms was a matter of controversy.
Mr. Meighen, in courage and speaking capacity, was an
admirable Party and Election leader, though he lacked certain
*Note. — See record in The Canadian Annual Review for 1919, page 604, and page 365, and
in 1920 volume, page 399.
[445J
446 THE CANADIAN ANNUAL REVIEW
qualities which had drawn men to Sir John Macdonald or Sir
Wilfred Laurier. In this contest with manifold difficulties,
however, he won a high place in the political history of Canada
for determination of policy, vigour of action, speech-making
power, and clarity of exposition. It was at London, on Sept. 1st,
,. that he announced the coming Election and made it clear that,
• so far as he could establish the issue, it would be fought on the
Tariff question. First came a reference to the War, the great-
ness of the problem, the difficulties of the Government, the
generous verdict of other peoples concerning its policy, his be-
lief and hope that, with mistakes admitted, the conduct of those
who bore the responsibility of government through those trying
years was not unworthy of the Canadian army and the Cana-
dian people. He then touched the central point of his address —
the Tariff policy of Canada : "For 43 years we have had a Pro-
tective tariff. We decided on that course deliberately in the
throes of a great depression — a depression caused by the flood-
ing of our markets and by the erection of customs barriers
against us by the United States — blocking the passage of trade
channels that we had opened up. With our eyes open, with our
minds clear, we have sustained that policy ever since."
A review of United States action and of world support to
the Protective idea, followed; a study of the views and actions
of those who challenged this policy was given. As to the Lib-
erals, he declared that: "They challenge, I know, with muffled
drums and uncertain chorus, and no one knows what is their
song, or where they are, or what they intend to do. But they
adopted in solemn Convention just two years ago a Resolution
that bound them to place on the free list 19 classes of articles.'*
Mr. Mackenzie King was asked if he still stood on that plat-
form. Then Mr. Meighen turned to the Progressives, and his
words were not clothed in softness: "A new party has arisen
in this country. It took its birth in Western Canada. There it
flourished and there it has its stronghold still. By adroit organi-
zation, by special periodicals and propaganda, by class appeal,
misinformation has been scattered, prejudice has been develop-
ed, and the harvest is a political party whose set purpose is
to reverse the fiscal policy of this country. It has grown to full
maturity; it has demonstrated great strength. The breath of
life of that party is Free Trade." This was the central theme
of the speech ; the Tariff was the issue as Mr. Meighen wanted
it and understood it ; this question was the pivot upon which
the 200 speeches he made in the ensuing contest chiefly turned.
The address concluded with the statement that: "It is, in my
judgment, the duty of Parliament and my duty as Prime Minister
of this country to ask for the dissolution of Parliament at an
early date and an Election before the new year, and that is the
course I am going to pursue." It may be well, at this point, to
give the Tariff planks in the three Party policies thus brought
before the electorate :
MR. MEIGHEN AND THE GOVERNMENT'S POLICIES 447
Government, 1920:
A thorough revision of the tariff with a view to the adoption of
such reasonable measures as are necessary — (a) to assist in providing
adequate revenues ; (b) to stabilize legitimate industries ; (c) to en-
courage the establishment of new industries essential to the economic
development of the nation ; (d) to develop to the fullest extent our
natural resources; (e) to prevent the abuse of the tariff for the ex-
ploitation of the consumer, and (f) to safeguard the interests of the
Canadian people in the existing world struggle for commercial and in-
dustrial supremacy:
1. As a means of raising revenue the tariff should be so adjusted as
to place the chief burden upon those best able to bear it.
2. Apart from the question of revenue, the tariff should have regard
to the maintenance, stability and prosperity of Canadian enterprise in
the development of all our natural resources in lands, forests, mines,
fisheries — as well as our agricultural and manufacturing industries.
3. For the purpose of encouraging the fullest development of our
natural resources the tariff should be so adjusted as to permit machinery
and the implements of production to be purchased at prices that will
compare equitably with those paid in other countries for similar articles.
4. The principle of trade preference between the different members
of the Britannic Commonwealth should be maintained and extended from
time to time to such degree as may be found practicable and consistent
with Canadian interests.
Liberals, 1919:
That the best interests of Canada demand, that, at an early date,
substantial reductions of the burdens of customs taxation be made, with
a view to the accomplishing of two purposes of the highest importance :
First: Diminishing the very high cost of living which presses very
severely on the masses of the people ; Second, Reducing the cost of the
instruments of production in the industries based on the natural re-
sources of the Dominion, the vigorous development of which is essential
to the progress and prosperity of our country.
That, in order to bring about the above objects, the Liberal party
pledges itself, on receiving the endorsation of the electors, to enact
legislation :
1. Placing on the free list wheat, wheat flour, and all products of
wheat; the principal articles of food; farm implements and machinery;
farm tractors ; mining, flour and saw-mill machinery and repair parts
thereof ; rough and partly dressed lumber ; illuminating, lubricating and
fuel oils ; nets, net twines and fishermen's equipments ; cements and
fertilizers.
2. Diminishing the tariff in order to extract a reduction of at least
50 per cent, on the duties on wearing apparel and footwear and raw ma-
terials entering into the production thereof.
3. Increasing the British preference to 50 per cent, of the general
tariff.
Progressives, 1918:
Therefore, be it resolved that the Canadian Council of Agriculture,
representing the organized farmers of Canada, urges that, as a means of
remedying these evils and bringing about much-needed social and eco-
nomic reforms, our tariff laws should be amended as follows :
(a) By an immediate and substantial all-round reduction of the
customs tariff.
(b) By reducing the customs duty on goods imported from Great
Britain to one-half the rates charged under the general tariff, and that
further gradual, uniform reductions be made in the remaining tariff on
British imports that will ensure complete Free Trade between Great
Britain and Canada in five years.
448 THE CANADIAN ANNUAL REVIEW
(c) That the Reciprocity Agreement of 1911, which still remains on
the United States statute books, be accepted by the Parliament of
(d) That all food stuffs not included in the Reciprocity Agreement
be placed on the free list.
(e) That agricultural implements, farm machinery, vehicles, ferti-
lizers, coal, lumber, cement, illuminating fuel and lubricating oils be
placed on the free list, and that all raw materials and machinery used
in their manufacture also be placed on the free list.
(f) That all tariff concessions granted to other countries be im-
mediately extended to Great Britain.
(g) That all corporations engaged in the manufacture of products
protected by the customs tariff be obliged to publish annually compre-
hensive and accurate statements of their earnings.
(h) That every claim for tariff protection by any industry should
be heard publicly before a Special Committee of Parliament.
Of course there were other issues and the Liberals made
j the Railway policy a conspicuous one while the Progressives
* added to this the high cost of living as being based upon Tariff
rates. The Government claimed all that was good in the war-
record of the Borden and Unionist Administrations, but did not
. lay stress upon its war policy or make it a dominant issue;
* similarly there was no vehement anti-Reciprocity talk as in
1911 and that question, like the War, was taken as settled,
/g Stress was laid upon the Government's elaborate policy for, and
' in respect to, returned soldiers ; much was said of its financial
action and policy, in the War and after, the absence of scandal
the courage of taxation; the practical and useful work of
Department of Agriculture was eulogized as was the Labour
policy of Senator Robertson and his Department ; the organiza-
tion and action of the Department of Health and the wisely
(-"regulative policy of the Immigration Department were made
©much of; blame for all the Railway troubles of the time was
laid upon the Laurier Government and its inception of the
Grand Trunk Pacific; pride was expressed in the foundation of
'the Government Merchantile Marine.
The Tariff arguments used by the Government speakers
were many and varied. It was said to be, practically, that of the
Laurier Government with an average rate of duty in 1911 total-
ling $15.87 on every $100.00 of imported goods (dutiable and
free) and a similar rate in 1920 of $14.67; the Liberals and Pro-
gressives were challenged to deny that a lowered tariff meant
increased imports from the United States, a larger balance of
trade against Canada and an increased discount on the Cana-
dian dollar with higher rates of exchange ; the increasingly Pro-
tective policy of England was referred to, though not in such
detail as to specify the new tariff on clocks, motor-cars and
musical instruments, the Agriculture Act of 1920 fixing stand-
ard prices for wheat, etc., the Dye-Stuffs Act, and the Safe-
guarding of Industries Act; the rural depopulation under Pro-
tection in Canada was met by references to a Report of the
Michigan Secretary of State showing 18,232 idle farms in that
State and 1,700,000 acres, uncultivated, with 30,000 vacant
houses in rural regions.
MR. MEIGHEN AND THE GOVERNMENT'S POLICIES 449
The Progressive claim that the Tariff affected farmers dis-
astrously was countered with quotations from the Ontario
Handbook, issued by the Drury Government, and one of which
referred to Ontario's "expanding cities and advancing values,"
and declared the opportunity of investing in its farms would not
long be as easy as at present. The farmer was told that more /
had been done for him in fiscal matters than for any other class /
as, for instance : Binder twine, free ; binder attachments, free ;
cream separators, free ; cultivators for farms, free ; seed drills,
10 and 15 per cent.; ditching machines, free; traction engines
(gas and gasoline), free; with specially low tariff duties on im-
plements. Much was said, though not by the leaders, as to the
immunity of the farmers from Income tax and their payment,
throughout Canada, of $611,735 out of a total of $46,381,806
obtained.
Mr. Meighen's second important speech in a campaign
which practically lasted three months, was at Portage la
Prairie, in his own Western constituency, on Sept. 27. Hon.
Hugh Armstrong presided, and the speech was notable for meet-
ing boldly the special Western view-point and facing its Tariff
hostility with flat contradiction and re-assertion of moderate
Protection as his policy and the pivot of Government action.
"If," he said, "I can but get the people in this country to see
that the issue is Protection or no Protection, the battle will be
won." He declared there were two wings of the Opposition,
one of which was used for the East and one for the West, and
added: "For the Dominion to abandon the system it has built ,
up during 40 years will be the most arrant folly ever committed v
by an intelligent nation." After a reference to the Exchange
situation and the danger of adding more imports to the large
balance of trade already against Canada, Mr. Meighen pro-
ceeded:
But the United States is not satisfied with selling us $800,000,000
worth of goods and buying less than $500,000,000 from us. They have
lately enacted the Fordney Emergency Tariff in order to stop all farm
products of which we are selling them $168,000,000 a year, and they have
put up against those products, and other goods, besides, a practically
prohibitive tariff. Mr. Wood and Mr. Crerar say that the right thing
for us to do is to drop down the low tariff that we have to-day, and,
while our farmers cannot sell goods over there, to enable their farmers
to sell more goods in Canada against the product of Canadian farms.
'Oh, but,' you say, 'maybe if we take our tariff down they will take
theirs down.' My answer is this: Ours was lower than theirs before
they touched their tariff. My answer next is this : Even if they took
their tariff down they will likely put it up again just when they think
it will suit them best. In any event, at the time that they are putting
up the bars against this country one would scarcely think that Canada
will bow the knee and throw the gates wide open for the surplus pro-
ducts of the United States.
The grain trade was the other main topic in the speech,
and Mr. Meighen dealt at length with the proposed Enquiry and
its legal check at the hands of the Opposition. Passing then
to the moot subject of the Wheat Board, he added: "I do not
450 THE CANADIAN ANNUAL REVIEW
think that a Government has any right to put itself on either
side of the market. Its duty is to stand fairly between and see
that the producers give a fair deal to the consumers. I do not
think that monopolistic control such as that exercised by the
Wheat Board was right, in 1920, in view of the changed situa-
tion, and I do not think it would be right to have a Board with
monopolistic control to-day." He had an alternative plan: "I
propose that there shall be established a Canadian Board y.long
the lines of the Canadian Wheat Board, but not endowed with
any monopolistic powers, that the principle of pools shall be
/ adopted, but that they shall be voluntary pools conducted
through the medium of the Board appointed by the Government,
and that every producer of grain who chooses to take advantage
of the Board's operation shall have his grain delivered in the
same way as under the Canadian Wheat Board ; that he shall
receive cash payment from the Board for his grain and a par-
ticipation certificate for any balance he would obtain later ; that
the Board shall handle and dispose of that grain to the utmost
advantage of the producer." His proposition would, he thought,
work out as follows :
1. The man producing the crop would know that he was getting all
that his crop could obtain in the markets of the world, less natural
costs.
2. If the Board considered that mixing should be practised, then
the Board could practise it, and whatever advantage accrued would go
back to the producer and be reflected in his participation certificate.
3. Whatever grain went through the Elevators, under the Board,
the proportion of the whole average would go back to the producer and
be reflected in his participation certificate.
4. When, by the handling of grain in large quantities, and by the
use of the general Government elevators that stretch, now, almost across
the country, general benefits result, these would be conferred upon the
farmer.
As to the charges of Tariff preference for the "Big In-
terests," the Premier was explicit: "In 1919-20 direct taxation
brought in $228,000,000, or 58 per cent., and indirect taxation
$163,000,000, or 42 per cent. For the last year we raised $237,-
000,000 or 71 per cent., by direct taxation, and $135,000,000, or
. 29 per cent., by indirect taxation. The Crerar group advocates
J a sharply-graduated Income tax, yet the Canadian Income tax
on the biggest incomes is the highest in the world. From the
man who has an income of $1,000,000, the Government takes
$697,000. For small incomes single men have exemption on
$1,000, and married men on $2,000. One per cent. Income tax
is imposed on Banks, insurance, loan and railway companies.
We taxed business until we had nearly destroyed it. Excess
profits taxes will have brought into the Treasury by the end of
the year $250,000,000. From Packers we have taken half the
profits between 7 and 17 per cent., and if they make over 15
per cent, profit the Government takes it all." Following this
speech the Government supporters in Saskatchewan (Sept. 30)
held a Convention at Regina and formed a Provincial Associa-
tion with J. F. Bryant as President ; new life and energy were
MR. MEIGHEN AND THE GOVERNMENT'S POLICIES 451
put into its Western forces by the clearness and positiveness of
the utterance.
Mr. Meighen was in Montreal on Sept. 30 and won a
warm greeting from 3,500 people at the Monument National ;
with him were his four Quebec colleagues, Messrs. Ballan-
tyne, Monty, Belley and Normand. In an elaborate speech,
the Premier declared that the Election had to be fought out
on the basis of the Tariff, and he held up to strong criticism
the platform of the Progressive party. He declared that the
movement headed by Hon. T. A. Crerar and Henry W. Wood
was an alarming menace to the future fiscal independence of
Canada and that, unless checked, it might also menace the
political independence of the country. He viewed with
alarm the manner in which the class movement on the part
of farmers had gained momentum in sections of the West J
and in Ontario, and held that the only course open to people
who sought the best interests of Canada as a nation was to
come out in the open and fight the movement until it was
beaten.
The Premier made an earnest appeal for racial concilia-
tion and concord, urged Quebec to bury the past and vote
only in and for the present. As to the future: "At the very
basis of all hope of stability and prosperity in this country,
lies the Tariff policy of the Dominion." He declared that
the Progressives had "exterminated the Liberals of the
West" ; claimed the platforms of the two Opposition parties
to be much the same ; urged the Protectionists of Montreal
and of the Province not to trust the Liberals as to the Tariff
or feel confidence that the Party would step off its own plat-
form if elected; alleged that the present Tariff was prac-
tically that of the Laurier Government; opposed Reciprocity
as making Canada dependent upon the changing policy and /
legislation of the United States ; described his Government
as the heir and not the creator of the Railway problem.
"What I say to the people of Montreal is this: The fault of
premature construction of railways has to be paid for, and
if there are any of you who think that you can get a Com-
pany to do it, I would like you to produce the Company.
There is really something tragic in the appeal of these men
who wasted, or almost wasted, $500,000,000 of our money on
transcontinental roads, to be restored to power in order to
re-establish economy."
Mr. Meighen then went to Nova Scotia and spoke at
Amherst on Oct. 3rd, accompanied by Hon. F. B. McCurdy and
Hon. Andre Fauteux ; Digby and Yarmouth were visited on the
4th ; speeches were made at Kentville, Windsor and Halifax on
the 5th ; Pictou and Antigonish were visited on the 6th, Glace
Bay and Sydney on the 7th, New Glasgow and Truro on the 8th.
Charlottetown, P.E.I., was reached on the 10th with speeches,
also, in Kensington and Summerside ; Moncton, N.B., on the
llth, St. Stephen on the 12th, St. John on the 13th, Chatham and
452 THE CANADIAN ANNUAL REVIEW
Newcastle on the 14th. The Premier's energy seemed tireless
as he went by train, by automobile, and, at some parts of his
journey, by boat, to disseminate his doctrine of Tariff protection
for Canadian producers. Mr. Fauteaux and Hon. J. B. M.
Baxter accompanied the Premier on much of this tour. At these
meetings and, notably, at Halifax, the Premier claimed that Pro-
tection meant Canadian trade through Canadian ports, and run-
ning East and West on Canadian Railways instead of North and
South on (very largely) American lines ; that it also meant
Maritime "home rule" in railway matters as a certain result of
the acquisition of the Grand Trunk and the consolidation of the
National System which soon was to be accomplished. When
that great system became one, with its 22,000 miles of railway,
de-centralization of control should be introduced; by this the
Maritime Provinces would benefit.
Meanwhile, Parliament was formally dissolved on Nov. 4th
and, at the same time, a Manifesto was issued denning the Gov-
ernment's policy and dealing, chiefly, with the Tariff. In it Mr.
Meighen combined the records of the Borden, Union and his own
Governments : "I have been a member of the Government
through eight eventful years, and its Deader for something more
than one. The Government has conducted Canada's affairs
through a devastating war. It has met and surmounted unpre-
cedented difficulties and survived the crises that such a war
brings in its train. It has formulated policies by means of which
the sufferings of the conflict have been and are being ameliorated
and its loss and wreckage repaired." He quoted the Liberal
platform of 1919 to prove his charge against the Liberals of
abandoning Protection; he described the fiscal policy of H. W.
Wood and T. A. Crerar and the Progressives as a special menace
to the Tariff and Canadian industry; he eulogized Protection
and urged the need of fiscal stability. Practically, no other sub-
ject was discussed except the following reference to Empire
matters :*
By tradition, by the sense of common inheritance, and of common
ideals, the Dominion of Canada aspires to one destiny, and one only —
a destiny than which there is no nobler — nationhood within the British
Empire. I am convinced there is no single thing more vital than that the
i British Empire, as at present constituted, should be maintained. We
1 enjoy the fullest autonomy, and that autonomy is not challenged and
never shall be challenged. For the maintenance of the British Empire
as a league of autonomous nations there are common burdens that all
must share, but these burdens are light and the advantages abundant,
in comparision with either the burdens or the advantages of any other
destiny that can be conceived. Sentiment and interest are in accord in
upholding British connection.
Mr. Meighen opened his Ontario tour at Spencerville, near
Brockville, on Oct. 19, with a vigorous attack on the Progressive
Leader : "We have not been in the propaganda business during
the War," declared the Premier; "Mr. Crerar has been talking
about our campaign fund and the publicity that we are going
. *Note— This extract is from the Tojonto Globe. Curiously enough the whole paragraph is
omitted from the Official Party Bulletin published on Oct. 8th.
MR. MEIGHEN AND THE GOVERNMENT'S POLICIES
453
to put on in order to defeat him. I tell Mr. Crerar that he and
his organization have spent more money on propaganda in the
last eight years, five dollars to one, than the Government party
has spent, and a little more. They maintained newspapers in
Western Canada to further the political interest of H. W. Wood
and Mr. Crerar through years when the Farmers were com-
plaining that they did not get the value of their grain and that
it was absorbed by the grain companies. They have used the
profits of their own Grain companies, made out of the farmers'
grain, to subsidize those papers to maintain propaganda, to the
extent of hundreds of thousands of dollars."
Mr. Crerar was described as "a determined Liberal, by tra-
dition, by prejudice, by his method of discussion, by everything /
that animates his public conduct." He was Liberal tb the bone, ^
and "it is the Liberal Party he would like to help." As to "big
business" charges, he denounced people who set class against
class : "I don't think this country can be any country at all un-
less we have big business. A country that is too afraid to en- /
courage business operations on a big scale soon will have no *
business interests, big or little. If we had no big business we
should not have any export trade, and that trade keeps busy
half of our population." As to the Tariff and the Agrarian
policy, he made this statement: "I say that even if the whole
world was Free Trade, Canada is the one country that should
have Protection. Free Trade will always tend to add to the
wealth and strength of a big country that is ahead, that has big
industrial plants and is able to take care of raw material and
make it into the manufactured article quickest and cheapest be-
cause it works on the biggest scale. But Canada is not in that
position, she is one of the youngest nations of the world." The
tour which followed can only be dealt with in the following list
of speeches :
Brockville . ..Oct. 18
Goderich . .
Clinton
Sarnia
Stratford ..
St. Mary's .
St. Thomas
Brantford .
Orillia ,
19
19
20
21
21
22
24
25
Bracebridge ....... .Oct. 25
Sault Ste. Marie ...
North Bay
Toronto
Welland
Milton
Hamilton .
26
27
28
29
29
31
Picton Nov. 2
Peterborough " 2
Different Ministers accompanied the Premier on this Tour
— Dr. L. P. Normand of Quebec, coming to North Bay, in par-
ticular— and, upon the whole, great public interest was shown
in the meetings ; the rival tours of Mr. King and Mr. Crerar
helped to keep up the interest as well as to provide bases for the
counter-attacks in which Mr. Meighen excelled. In Toronto
the Premier defended the Merchantile Marine policy of the Gov-
ernment, stood for Protection, as he had everywhere done, and
denounced the alleged Liberal efforts to escape from this issue :
"Trying to talk about the Merchantile Marine in the Maritime
•
454 THE CANADIAN ANNUAL REVIEW
Provinces, trying to sail under the Crerar banner in the West,
trying to talk higher tariff in certain cities of Canada, preaching
revenge for Conscription in the Province of Quebec with revenge
on the rest of Canada and on myself in particular, urging Pro-
tection for everything produced in British Columbia."
On Nov. 4th the Premier was again in Montreal and ad-
dressed two meetings. He dealt largely with the Tariff utter-
ances of H. M. Marler, who was opposing (and ultimately de-
feated) Hon. C. C. Ballantyne. He claimed that Mr. Marler's
programme regarding the Tariff was not that of his leader,
and quoted the Liberal candidate's excuse that the Liberal plat-
form in 1919 was drawn up by Farmers who had since left the
.party: "Protection on apples in British Columbia, Free Trade in
-j the Prairie Provinces and the rural parts of Ontario, Protection
in industrial centres in Ontario, Conscription in Quebec, and
humbug in the Maritime Provinces," was his concise summary
of the Liberal platform. Much attention was devoted to Sir
Lomer Gouin's views ; the Premier claimed that he and Mr.
Marler and the Quebec Liberals were "determined that the issue
will be the National Railways and whether or not they should
be turned over to a private Company or merged in another
system," and declared himself ready for the issue. A tour of
Quebec followed, with speeches at Lachine, Three Rivers, Shaw-
inigan, Quebec City, Sherbrooke.
At Ottawa, on Nov. 10th, the Premier addressed two large
meetings before leaving for his Western tour ; here he made the
interesting statement that the Trans-continental without the
Grand Trunk would mean nothing. Either the Grand Trunk
must be acquired, or feeders must be constructed. Upon the
question of the^ National Railways and inter-locking Director-
ates, he said: "Are we to have business men in charge of the
System or are we not? If we are to have business men in
charge how are we going to get business men who have no
business !" There was no charge that any Director had made
use of his position to benefit other Companies at the expense of
the Railway. As to this point, Hon. J. A. Stewart, Minister of
Railways, issued a statement on the llth that Railway equip-
ment purchased during the period, 1917 to 1920, amounted to
$95,299,957, and, of this, equipment to the value of $51,006,248
was purchased from the Canadian Car & Foundry Co. ; $14,216,-
547 from the Eastern Car Co.; $10,474,949 from the National
Steel Car Co. ; $9,508,259 from the Canadian Locomotive Co., and
$10,093,952 from the Montreal Locomotive Co. Two of these
Companies were represented on the C. N. R. Board, but they
were the smallest concerns in size of contracts.
On the 14th Mr. Meighen was in Manitoba and opened his
Western campaign at Carman and at St. Eustache in his own
constituency. His argument covered the fiscal issue, with une-
quivocal declarations of policy on that question, a statement of
the Government's motives for instituting the Grain Enquiry, a
MR. MEIGHEN AND THE GOVERNMENT'S POLICIES 455
reiteration of his intention, if returned to power, to establish a
voluntary Grain pool for the benefit of the producers of all Can-
ada. At Headingly, on the 15th, Mr. Meighen attacked the /
United Grain Growers, Ltd., asserted that the Company had put /
$100,000 into a political newspaper and quoted the evidence given
by C. Rice-Jones, the General Manager, before the Cost of
Living Commission. He also stated that the United Grain Grow-
ers had stopped none of the abuses the Company had been estab-
lished to stop ; it had passed on to the farmers none of the ad-
vantages it had secured: "Had a private corporation made a
profit of $550,000 on an investment of $100,000 in a wheat ex-
port subsidiary, it would have been described by Mr. Crerar as
a profiteer."
He was at Winnipeg in the evening and spent the 16th in
his own constituency with speeches at Rosser and Macdonald;
he was at Brandon and Boissevain on the 17th, with two meet-
ings in each place ; at Moose Jaw and Regina on the 18th and
back at Dauphin, Man., on the 19th, with two meetings. Here
he dealt with the Liberal leader's charge that he was an auto-
crat, ruling the people against their will: "Mr. King says I
should have gone to the people before we took over the Cana-
dian Northern and before we built the Merchant Marine, or
took over the Grand Trunk, and I do not know how many other
things, which would have meant an Election about every three
months. But now I do go to the people on something that
means a drastic, radical, and permanent change in the whole
grain-handling system of Canada ; you are told to vote against
me because it is an election dodge. If I do it any other year
without an Election then I am an autocrat, and if I do it through
an Election then I am a political dodger !" In six days he visited
15 places and addressed 20 meetings. The Premier, wearied
but still campaigning, was back at Port Arthur and Fort William
on the 21st and addressed two more meetings.
Nomination Day (Nov. 22) showed only one Acclamation,
and that was disputed and nullified (E. Gus Porter in East Hast-
ings) ; a tremendous list of 630 candidates for the 235 seats and
including 212 Government or Conservative candidates, 201 Lib-
erals, 156 Progressives (Farmers) and 50 Labour, Independents,
Socialists, etc. ; of Government supporters in the late House
who, for various reasons, were not running, there were 14 from
Ontario, one from Quebec (Rt. Hon. C. J. Doherty), 11 from the
Maritime Provinces, including Sir Robert Borden, 11 from the
West. Amongst the retiring members the following had re-
ceived Government appointments : Sir George Foster, Hon.
J. A. Calder, Hon. J. D. Reid, Sir Edward Kemp, Hon. T. W.
Crothers, Brig.-Gen. W. A. Griesbach and Hon. R. F. Green —
Senatorships ; and H. M. Mowat and T. M. M. Tweedie, Judge-
ships. All the Leaders were opposed and 5 women were candi-
dates ; in Western Ontario there were three-corned fights in
most of the constituencies.
456 THE CANADIAN ANNUAL REVIEW
At Pembroke on Nov. 23 Mr. Meighen resumed his cam-
paign, and then spoke at Kingston on the 24th, at Orono and
Lindsay (Nov. 25), Midland and Barrie (26th), Owen Sound
(28th), Hanover and Chesley (29th), Simcoe and Woodstock
and Ingersoll (30th), Newmarket and Brampton on Dec. 1st,
Gait, Hespeler and Guelph (Dec. 2nd), and Strathroy and Pe-
trolia (3rd), Wallaceburg, Chatham, Dresden and Windsor on
the 5th. Here the Premier completed his continuous campaign
of two months and what the Winnipeg Free Press stated to be
/ 250 speeches — a really remarkable record of physical endurance
^ and intellectual achievement; with speeches which lacked per-
suasiveness but mingled satire and logic in effective force.
•
The Hon. W. L. Mackenzie King had always
Policy of the been fortunate in politics ; his advance during Sir
Liberal Op- Wilfrid Lauricr's regime had been exceptionally
Mackenzie raP^ ^or so young a man; his capacity as an ad-
King as ministrator was known, but it remained for this
Leader of Election to test his ability for leadership before
the Party. and amongst the people. There was from the first
no doubt about his energy and aggressive force ;
but the contest developed other requirements than these. Like
Mr. Meighen and Mr. Crerar, he was new to the position; like
them he threw himself into the contest with the greatest
. vigour. Being in Opposition his policy, necessarily, was not con-
V structive ; it was made up of attack, criticism, and offensive
operations — in a military sense. .Toward the Progressive? M" yj^
a_j)olicy of conciliation, of desired co-operation in defeating a
J common enemy! He expressed continuous and assured con-
fidence in Liberal success, and, while the Premier proclaimed
the Progressives to be the real danger to the Government, he
tried to hold both Opposition parties in attack upon the Gov-
ernment and not upon each other. In the main he was suc-
cessful.
As with all the Parties, a large amount of Election literature
was issued under direction of Andrew Haydon, Liberal
organizer and General Secretary; it included the Platform of
the Liberals as expressed in 1919, and that of the Farmers'
party, as published in 1918. In this and other publications the
Government was denounced for having taken over Railways
costing Canada more than a billion dollars without consulting
the Electors; for permitting multiple directorates amongst
P those in charge of the National Railways ; for extravagance and
Q alleged fraud in respect to exchange and the Militia Department
— which was under investigation by G. T. Clarkson of Toronto ;
Q) for waste and extravagance in various directions and an alleged
^effort to return to the Patronage system; for increasing the
-cost of living by unjustifiable expenditure, additional Debt and
taxes and inflated currency through a doubling of the note cir-
g)culation; for depression and unemployment in 1921, as in 1896
POLICY OF THE LIBERALS; MACKENZIE KING AS LEADER 457
when previously in power ; for the War-Time Election Act of;
1911 and for an "appalling waste" in Reconstruction matters?
which had prevented a Gratuity to the soldiers ; for its Merchant
Marine policy, its advances of money to Roumania and Greece
as trade credits, and for a Tariff "which had outlived its useful-
ness."
_A pamphlet as to the Liberals and the Farmers declared
that both were opposejd to the Meighen Government, and that
s apri pnlirjps attnrd ground ior conTmo'n action./^
'
§
"their platforms
It was stated that "in the 1st place, the essential features" off
their Tariff platforms are practically identical, in the 2nd place,]
the stand taken by the Leader of the Farmers on most of the
great public questions is practically the same as that taken by\
the Liberals, and, in the 3rd place, the Farmer members of Par-
liament have, in nearly all the important divisions, voted witif'
the Liberals." Another, quoted Resolutions passed at the Na-
tional Liberal Convention of 1893, and re-affirmed the fiscal
declaration of that year that : "We denounce the principle of Pro-
tection as radically unsound and unjust to the masses of the
people, and we declare our conviction that any tariff changes,
based on that principle, must fail to afford any substantial relief
from the burdens under which the country labours."
There was only one subject upon which the Progressives
were seriously attacked and that was in regard to the
government idea and the Referendum and KgcaJJladaptation, in
cf.rta.in ca.ses, from Um'te^ States political condition?: — These
things, it was claimed, had no place "Tri~IHe~fte"xible, easily-
changed system of Canadian responsible government; they ap-
plied only to rigid systems such as that of the United States.
Another pamphlet reviewed the platforms and showed in how
many cases the Liberals and Farmers, were agreed ; much was
said of the Liberal record in relation to Labour and of the past
Liberal sympathy with Franchise claims for women.
Following his partial Ontario tour at the end of July, which
is dealt with elsewhere, Mr. King faced the, then, imminent
Elections with a visit to Windsor on Aug. 20, accompanied by
Hon. H. S. Beland. Here he made an important reference to
the Tariff : "Under the circumstances, now, we can't do away
with the tariff. We say the first consideration is in the raising
of the revenue necessary. It is not possible to raise the revenue
necessary now by direct taxation. However, the Tariff should
be revised so that it will serve the interests of the consuming
class and not the monopolists and the big, selfish interests. It
should be so that the food and the necessaries of life are made
as cheap as possible. We should aim to make the implements
of production in the national industries as cheap as possible. On
some we would take off the duty altogether and on others re-
duce." Meetings followed at Seaforth (Aug. 31) and other
points.
On Sept. 13 a large and irifluential delegation from P. E.
Island waited upon Mr. King at Ottawa and urged him to be a
458 THE CANADIAN ANNUAL REVIEW
candidate for Prince County in the Island ; as the 1919 law had
made it illegal for a candidate to run in two constituencies, they
urged the Liberal leader to stand in Prince County so as to en-
sure his election and leave him free for campaigning purposes ;
Mr. King, however, decided to rest his fortunes in North York.
On Sept. 20, accompanied by Hon. W. S. Fielding, he spoke at
a meeting of 4,000 people in Toronto, and touched on all the
issues of the day as he saw them. He spoke of the colossal
Debt being shouldered by the Canadian people — a Debt on which
the interest was greater than the whole amount spent by the
Laurier Government of 1911. He declared that the Meighen
Administration had shown that it was not capable of the econ-
omy necessary if Canada was to have a contented and pros-
perous people. He appealed for the principles of Liberalism
against the forces of reaction, and called for unity among all
people of progressive ideas and high ideals against "the common
enemy."
He denied that the Tariff was the whole issue : "In the
mind of the Prime Minister it may be the issue ; in the mind of
1 the people, however, the issue is the Prime Minister himself
and what he and his colleagues represent of autocracy and ex-
travagance in the management of public affairs." As to the
National Railways, he declared that their management and
operation had been placed by the Government under a Board of
Directors, the members of which were all the Government's own
appointees and, with the possible exception of the Deputy-Min-
ister of Railways, all immediate and close friends of the Ad-
ministration. He denounced the Government as unwilling to
give publicity to Railway management and conditions through
information given to Parliament. Upon the general issue he
made this comment: "The question, as matters stand, is not
one between Government ownership and private ownership; it
is, however, one between private interests and the interests of
the public, x x x We ought to give Government ownership
a fair chance, and a fair show before we condemn it, but we
cannot give it a fair chance if we have the interlocking of
Directors"— a reference to the National Railway Directors who
were Directors of other large concerns. As to the Tariff, Mr.
King read extracts from the Liberal Tariff Resolution of the
recent Session, and added :
It is for the principle of a Tariff for Revenue that the Liberal party
has stood m bygone years; it is for that principle the Liberal party
stands to-day, and it is for the principle of a tariff for revenue that
the Liberal party will continue to stand if returned to power in the
present contest. Let me tell Mr. Meighen that, while it is impossible
to have an issue between a tariff based on the principle of protection
I and a tariff based upon the principle of free trade, it is possible to have
an issue on a tariff primarily for revenue as against a tariff primarily
>r protection ; and that upon this issue we are prepared to fight.
Mr. Fielding, in his speech, regretted the Railway situation
and admitted anxiety as to the result : "But we have the Rail-
POLICY OF THE LIBERALS; MACKENZIE KING AS LEADER 459
ways now, and I don't want to discuss whether we were wise or
unwise in getting them. We have the Railways and I believe
our true policy, at present, is to endeavour to administer them
and see if we cannot make public ownership a success." He
regretted the defeat of Reciprocity in 1911 and declared that
had Sir W. Laurier consented to closure it could have been car-
ried in Parliament. Upon the Railway matter and in the light
of speeches in Quebec by Mr. Lemieux and others, the Toronto
Globe (Sept. 11) urged the Liberal leaders to speak in terms which
could not be misconstrued as to the continuance of Public own-
ership. Following this came a Maritime Province tour in which
Ernest Lapointe, William Duff, Hon. H. S. Beland, and, upon
occasion, New Brunswick and Nova Scotia Premiers, accom-
panied Mr. King. At Sydney on Sept. 26 he was introduced as
the coming Prime Minister and declared in his speech that : "We
are not for Free Trade. We are for a Tariff which is built up
according to the revenue necessary ; no legitimate industry need
fear tariff revision by us." As to Labour, he stated there were
four parts to Industry — capital, management, labour, and the
public community — and all these were entitled to a voice in the
management of industries. Instead of monopoly there should
be joint control by these four interests.
Ensuing meetings were at Bridgewater on Oct. 1st and at
Digby on Oct. 3rd. At Amherst (Oct. 4) 6,000 persons heard
Mr. King and his lieutenants deal with the Premier's Manifesto
and, in this industrial centre, the Liberal leader repudiated the
Free trade charge and declared that: "Free trade is not the
policy of the Liberal party. If it were, I would oppose it, be-
cause I believe it would bring disaster to our industries and re-
move from the farmers the home market which is practically
the only market that they have left. Free trade may be all right
for the wealthy grain growers of the West, whose wheat goes to
the foreign markets and who do not have to worry about selling
their products at home, but it would mean paralysis in the Mari-
time Provinces. I am a firm believer in the establishment of a
national Coal policy for Canada. No country, especially a coun-
try with cold winters, which depends on a foreign nation for its
fuel, can claim to be independent of that nation, x x x Every
pound of coal purchased by the Government should be mined by
Canadian miners and transported over Government railways to
the points of consumption. Coal required by other consumers in
Canada should be carried at cost."
At Charlottetown (Oct. 5) Mr. King had two crowded meet-
ings, and described Sir W. Laurier as the first Canadian to de-
mand that Canada be recognized as "a nation within an Em- j
pire" ; Mr. Meighen was only his follower in this respect. His
tariff utterance was a clever response to the Premier's Mani-
festo: "The Tariff is of importance, and our stand is well
known. We believe in a tariff for revenue. The Protective
tariff has led to profiteering on the part of its friends. Mr.
Meighen stands for the interests who support him. He would
revise the tariff in their interests. We stand for the rights of
460 THE CANADIAN ANNUAL REVIEW
the home and the people and would revise the tariff from the
viewpoint of their rights. You can't raise the revenue we must
have by direct taxation. There must be a Tariff for Revenue and
not for Protection." A. R. McMaster also spoke, and Mr. Duff
dealt, here and elsewhere, with Fishery interests and denounced
the Merchant Marine policy. At Georgtown (Oct. 7) the Lib-
eral leader declared that economy and "the strictest retrench-
ment in national expenditures are the crying needs of this coun-
try to-day," and that "a selfish combination of politicians and an
equally selfish group of business interests" must be broken.
A series of other meetings followed on the Island, includ-
ing Kensington and Summerside and three small agricultural
centres which were addressed on the llth. At O'Leary he
stated, in reply to a question, that the Liberals had refused to
y accept a certain Farmers' candidate because "the Liberal party
is not a class party and yours is a class candidate." Farmers
were needed in Parliament, he added, kut not as representatives
of a class. At the Summerside meeting (Oct. 12) Mr. King re-
ferred to the Liberal platform of 1919: "I consider the plat-
form as a chart to guide- me,-an4 with thelaface ot thickest
, minds in the Liberal party as a compass, will seek" to steer the
I riyht coursp. The platform was laioTTown as a chart. It stood
'primarily tor two things — for (1) Tarifi revision"to reduce the
cost of production and (2) to reduce the cost of necessaries of
life."
The Liberal leader was at Moncton on Oct. 13, addressed
three meetings there and declared that "the only difference be-
tween Mr. Meighen and Lenine and Trotsky is that the latter
use physical violence to retain power, while Mr. Meighen uses
legislative violence." At Sussex he was joined by Major C. G.
Power, M.C., and by Hon. W. E. Foster, Premier of New Bruns-
wick ; the latter was prepared "to stake his future" upon a com-
ing Liberal success. St. John was reached on Oct. 15, when, ac-
cording to The Telegraph, Mackenzie King "captivated, charmed,
and convinced" his audience: "Confidence of victory radiated
through his every utterance. He displayed that fire and fluency,
and a great deal of that indefinable dynamic something which
marks every great orator." Mr. Premier Foster also spoke, and
the speeches were very much along preceding lines except that
the Liberal leader stated that Hon. Mr. Lemieux, in supporting
Lord Shaughnessy's Railway scheme, spoke only as a private
citizen. Mr. King's peroration proved very effective : "Let me
say this to the people of St. John, Liberal or Conservative, for-
• get the past and realize the future. The Liberal party seeks
unity of class and class, creed and creed, race and race, Province
and Province, East and West, this vast Dominion with the other
Dominions of the British Empire. The Liberal party aims to
restore goodwill to all, for on goodwill alone rests the solution
of our difficulties. Only by co-operation can true advance and
progress be attained, and I ask you to join me in making that
aim a splendid reality."
POLICY OF THE LIBERALS; MACKENZIE KING AS LEADER 461
At St. Stephen (Oct. 17)* Mr. King told the press that:
"There is no understanding of any kind as to a compromise
with Hon. T. A. Crerar or anyone else. The Farmers of Canada,
irrespective of past affiliations, are already beginning to see
very clearly that a great deal more can be done to attain the
ideal they cherish by co-operation, with the other forces of pro-
gress which form the Liberal party, than by becoming identified
with an organization of class aims and ambitions." Follow-
ing addresses here and at Chatham, Newcastle and Campbellton
on Oct. 18 — with three members of the New Brunswick Gov-
ernment (P. J. Veniot, C. W. Robinson and J. E. Michaud} also
speaking at Campbellton — Mr. King returned to Ottawa, where
he took up the Munitions question. Speeches in Ontario came
a little later, and the Liberal leader was at Orono on Oct. 26;
Sutton and Stouffville on the 27th; Aurora on the 28th and
Bolton on the 29th. At London on Nov. 4, where he had the
support of Hon. Charles^Murphy and Hon. C. S. Hyman, the
local Liberal stalwart, and C. R< Somerville, Mr. King depre-
cated the Merchantile Marine project, the import of munitions
from England, and the acceptance of British ships of war: "I
am not against Canada doing her share in Defence or on the
Sea. I think Canada must do her part in the defence of her
coasts, as well on the seas as on the land, but it is for the Par- /
liament of Canada to decide what shall be done in that direction. /
We want to build up the British Empire. We want to make it
a united Empire, but you will never do it by secret councils."
On Nov. 8th Mr. King spoke at Sudbury en route to the West,
and was at Port Arthur on the 10th; here he dealt with the
Ellard charges as to Government acceptance of a note for the
Riordon taxes, and declared that "we'll never get the Income
taxes that we should get until there is a thorough examination
of these big Companies and a proper collection of their taxes."
The Leader's first speech on the Prairies during this tour (ac-
companied by Col. A. T. Thompson, ex-M.p., of Ottawa) was at
Melville, Sask., on Nov. 12th, and here he warned the Progres-
sives that he and his party were going to win and that the
Farmers were heading straight for complete isolation of the
Prairie Provinces. Mr. King declared that on his Western trip
a year before he had regarded the movement as a desire on the
part of the producers to give fuller expression to their needs in
legislation. Ffe. pointed out, however, that the policies of the
Liberals andjjif* Pf^r^gty^g ^f^sn-«rirn|1ffi atr "We have
noWJ:o conj>Kiej:^hflthfif f* *« fn be a triumph fo£~a name or for
a /fTnprTpTfT \ \yTMlld Hk* th* ^""ETTftfliYffP to point put wherein
the principles for which they stand differ from those 6t ttlfi
Ijiberal party as advocated m their 'platform A Ji there ati8T'$6me
differences they amount to nothing if we consider how they are
going to be enacted into law. What we want are laws which
will give expression to the views and wishes of all the people, J
but it is only wasting time to try and carry extreme measures."
NOTE. — Toronto Globe despatch, Oct. 18.
462 THE CANADIAN ANNUAL REVIEW
He reiterated his claim that the Tory forces were abso-
lutely devoted to the interests of privilege, and that there would
only be a remnant of Toryism in the next House of Commons.
As to fiscal matters, he said: "I challenge to-day any man or
woman in the country to show that I have made any variation
in my statements on the Tariff either in the West or the East.
The question before the people is not Protection versus Free
Trade, but how the Tariff is going to be revised. We intend to
revise it, not from the point of view of Protection but from that
of the revenue requirements of the country. We will place a
tariff-wall where necessary for revenue purposes." Dr. Michael
Clark also spoke. Two great meetings were held in Edmonton
on Nov. 14, with Col. Thompson and Hon. Frank Oliver also
speaking and Hon. Charles Stewart in the chair. In dealing with
the inter-locking of Directorates on the National Railways
Board, Mr. King made the new charge that Insurance to the ex-
tent of $140,000,000 had been placed on the National System, of
which $107,000,000 was placed in one Company in which two
Directors were also Directors of the Canadian National. Con-
tracts for equipment on the Railway were, he declared, also let
through the same system of inter-locking Directorates.
He reiterated his view of the Liberal platform as a chart
of guidance and, according to The Bulletin, added: "The Tariff
is simply a wall which, if built high enough, will keep out goods
and protect those behind. However, it can be made low enough
to permit goods to come in and yet give sufficient Protection.
Tariff for revenue only should be the object." At Calgary on
the 15th, Mr. King addressed a large meeting. He would give
no definite pledge as to the Wheat Board or Senate reform in
replies to questions. As to the Progressives, he was more ex-
j plicit than usual : "The Farmers' party is misnamed. It repre-
sents only those farmers who seek direct polilital aitkm." - He
declared that '"His 'party represented all groups and classes, and
had among its candidates representatives of every class. Coali^
tions were no longe r wanted. He repeated that the Liberal
Pttriy mW)d for a Tariff tor revenue in the interests of all pro-
ducers and coiistitneTs. He vigorously denounced H. W. Wood's
idea of Group government : "The greatest danger whid-Kthis
J country faces to-day is group control according to district, or by
geography." It meant isolation of a section from the reslrof
Canada. Hon. Duncan Marshall also spoke.
Another great gathering greeted the Liberal leader at
Regina on Nov. 16, with Lieut.-Col. J. A. Cross in the chair.
Mr. King declaimed against the alleged usurpation of the
people's prerogatives by the Government and its waste and ex-
travagance: "Who," he asked, "makes the issue? Is it Mr.
Meighen or is it the people of Canada? What right has Mr.
Meighen to say that the issue is confined to the Tariff?" He
expressed renewed regret at the defeat of Reciprocity; had it
gone through in 1911 conditions now would be very different.
POLICY OF THE LIBERALS; MACKENZIE KING AS LEADER 463
He denounced the Government's refusal to put all Government
Railway facts and conditions before Parliament: "If you can- /
not have Public ownership with publicity you cannot have it at "*
all. One of the main purposes of Public ownership is that the
public should know how far they are being milked one way or
the other in the administration of that public utility. The Rail-
ways are not being given a fair chance ; neither is Government
ownership."
At Winnipeg, on Nov. 18, Mr. King, as elsewhere in the
West, vigorously attacked the Board of the National Railways
and declared that the whole management had been entrusted to
a group of men who were not only Directors on the Railway
Board but also Directors on many other concerns which dealt in
goods and material required for the operation of the Railways.
Upon the broad principles of Public ownership of railways, he
said very little either in the West or the East; the mistakes of
Government policy in lending money to the railways or in J
assuming control without consulting the country were strongly
dealt with ; the importance, the benefit or otherwise, of public
ownership were not treated. Little was said by him or by Mr.
Meighen as to Provincial control of natural resources ; at Win-
nipeg Mr. King did say that if the Liberals were returned to
power he would see to it that that question was given the very
first and very best consideration. He was at Cobalt on Nov. 19,
and on the 22nd was at Newmarket in his North York con-
stituency; here, as in the West, he protested against the coming
isolation of the Farmers' group in the country and urged co-
operation as a better alternative.
Woodstock was visited on the 23rd, and the meeting was
told that Parliament had not given the Minister of Finance the
right to accept promissory notes from the Riordons or anyone
else, and only Parliament, he contended, could give this power.
In these more recent meetings and as the contest became more
vehement, Mr. King had dropped his appeal to the similarity in /
policy and aims of the Progressives and Liberals ; here he ex- v
plained that it was only when the Progressive party showed its
unwillingness to co-operate in fighting the common enemy that
the Liberals had, in certain cases, decided to put men in the field.
Dr. Clark had been a leader of the Progressives in the House,
"but he came to see in the party a new form of Toryism since
it sought for one Group what it was not prepared to concede to
others"; he referred, also, to the Progressive opposition in the
West to Hon. Duncan Marshall and Hon. W. R. Motherwell —
two outstanding agriculturists. At Brantford, on Nov. 24, Mr.
King stood for a Revenue Tariff which would protect industries, i
protect the farmers, protect the people of all classes, but would ^
not create multi-millionaires, monopolies, mergers, trusts and
combines.*
*NOTE.— Toronto Globe report, Nov. 25
464 THE CANADIAN ANNUAL REVIEW
He was at Chesley on the 25th and Peterborough on the
26th and, as to the Tariff, declared that: "We want to build
up, not to destroy, the industries of the country, and no industry
doing a legitimate business, need have fear." The real issue was
usurpation of power by the Meighen Government, which had
assumed and held office without going to the people, had ac-
4 quired the C. N. R. and Grand Trunk without the sanction of the
people and was now rilling the Senate with its friends to oppose
the will Of the people. At Ppmhrnkpr rm Nnv 27, ]VTr TCing-
stated the similarity of the Liberal platform with the objects "of
Farm£XST~-Labour> Soldie^-and Women, to be as follows; (1)
The desire to reduce the cost of living; (2) the reduction, of
I duties on the necessaries of life and the implements of produc-
tion; (3) retrenchment and economy in administration; and (4)
Tepf e sentative, rattier than autocratic, government
— ffFinfmnied up the situation at Oshawa on the 28th : "Re-
turn of Mr. Meighen's Government means an endorsation of
autocracy for another five years; return of Mr. Crerar and the
Progressives means a leap in the dark to no one knows what;
return of the Liberals will mean the formation of a Cabinet
composed of the best men from every Province in Canada
representing agriculture, labour, returned soldiers and the busi-
ness, professional, and commercial classes." On Nov. 30 a large
meeting was addressed at Gananoque and three meetings at
Kingston. Here a more clearly denned statement of Railway
policy than usual was given: "Public ownership of railways
has not had a fair show. We want to see the Railways given a
fair chance. We want to see if we cannot make the operation
of this National System a success. We do not want in this
country to have a monopoly of any kind." He told his audience
that the total burden of taxation, based upon the amount voted
by Parliament at the last Session, meant a levy of $310 on every
family of five in the country. North Bay was reached on Dec.
1st, and here Mr. King gave his last speech of the campaign —
apart from North York, in which he spent the next four days,
and where, on Dec. 5, he issued a brief final Appeal to the
Electors :
The political campaign now drawing to a close has demonstrated
clearly that, in the exercise of your franchise on Dec. 6, you will be call-
ed upon to decide, as respects the next five years:
1. Whether the affairs of our country are to continue to be ad-
ministered by an autocratic Executive, indifferent alike to the will of
the people and the rights of Parliament, as the Meighen Administration
has been ever since its usurpation of power nearly a year and a half
ago; or
2. Whether, at this critical time in our country's affairs and the un-
settled condition of other countries, we in Canada are to experiment in
our Federal politics with government by class primarily in the interests
of class ; or
3. Whether we are to have a return to representative and respons-
ible government, in the fullest meaning of the words, with a due recog-
nition of the character of the House of Commons as a deliberative as-
sembly and of the supremacy of Parliament in all that pertains to our
domestic, inter-Imperial and International affairs.
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THE PROGRESSIVE'S POLICY; MR. CRERAR AND THE FARMERS 465
4. As matters stand, a vote for the so-called National Liberal and
Conservative party is a vote in favour of autocratic government; a vote >
for the so-called Progressive party is a vote in favour of government by /
class ; a vote for the Liberal party is a vote in favour of a return to *'
government of the people, by the people, for the people, irrespective of
any privilege or special favour.
Progressive
Party; Mr.
Crerar and
the Farmers.
Following the defeat of Reciprocity in 1911
Policy of the and the steady growth of the United Farmers' or-
ganization, both in the East and the West, the de-
velopment of a new political party was natural —
particularly in the West. Equally so was the
choice of Hon. T. A. Crerar as leader. The son of a
farmer, with experience as a school-teacher and a farmer, as a
financier in his management of the Grain Growers' Company in
Winnipeg and as a member of Parliament and of the Union Gov-
ernment, his selection as leader of the new Party was both nat-
ural and appropriate. Courageous and courteous, diplomatic at
times and aggressive at others, he entered upon the 1921 cam-
paign with an elaborate Party platform, with a record of suc-
cess in seven bye-elections, with the expected support of nearly
all the Prairie ridings, with the co-operation of the Drury Gov-
ernment in Ontario, the Norris Government in Manitoba, and
the Greenfield Government in Alberta, and with a certain
amount of assured support in all the other Provinces — except,
perhaps, Quebec and P. E. Island. The Platform of the Party
as to fiscal matters is given elsewhere ; it will be found in full
in The Canadian Annual Review for 1919* During the year and in
the Elections, an immense amount of campaign literature was
issued, much of it dealing with the Tariff.
The policy as to Railways was indicated in the following
paragraph : ''The question of placing the present loosely con-
nected Government system of railways on a paying basis would
seem to involve (1) re-valuation and re-capitalization; (2) a
fiscal policy for Canada, which will encourage colonization and
rapid increase in the development of agriculture and the other
basic industries of the country, and (3), if possible, an efficient
administration free from political interference." In another
leaflet it was stated, as to freight rates, that: "A reduction in
rates may be forced, even if the financial condition of the Gov-
ernment roads does not improve, for it is questionable whether
the business of the country can much longer carry the load. If
it cannot, then relief may be found through a vigorous writing
down of the liabilities of the roads, which would carry with it
a corresponding reduction in rates." Economy was demanded:
"Canada needs both population and capital., A very large pro-
portion of this should come from the United States ; but it is
useless to expect an influx of people or money into Canada if
the per capita expenditure is to be much higher than it is across
the line. We get the people, but we don't hold them."
*Note— See Pages 365-8 in 1919 Volume.
16
466
THE CANADIAN ANNUAL REVIEW
The Sales Tax was said to hit the poor man chiefly; Cana-
dians were said, in proportion to population and accumulated
wealth, to bear heavier financial burdens than the Mother-land ;
a separate leaflet undertook to prove that the Fordney Bill and
the loss of a market for $170,000,000 of Canadian products was
"a direct result of Canada's action in defeating the Reciprocity
r% pact of 1911"; the Income Tax was stated to have come to stay,
and to be the chief source of future revenue; the Government
Q> Shipbuilding policy was called a fiasco with "painted ships upon
a painted ocean"; Mr. Meighen was denounced for having "kill-
ed the Wheat Board," and Mr. Raney's charges, in Ontario, as
to the Ford motor industry were re-published in full. The Cam-
paign Hand-book denounced the Government for "arbitrary re-
tention of power," for its War-Time Election Act excluding
alien women from the franchise, for its alleged dependence on
. , privileged interests in respect to campaign funds, for having a
Cabinet with 12 lawyers in it, and not one farmer, for the "im-
g> morality and viciousness of the present Protective system," for
its alleged support of monopolies, combines, etc., for a Free list
which was said to be largely a "special privilege in the Tariff
arranged to benefit a few," as the following list of duty-free
Imports was quoted to prove :
©
&>
Iron and iron ore partially manufactured
Chemicals and chemical products, including acids, salts, dyes, colours, etc
Ores and metals other than iron and steel, including aluminum, copper, brass, etc
Non-metallic minerals and products, including sand, coke, petroleum, gasoline, etc...
Fibres, textiles, textile products, including wool, cotton, hemp, jute, silk, etc
Vegetable products for manufacturing, including rubber, oils, gums, tobacco, etc
Wood, partially manufactured, including canes, rattans, hubs, staves, etc
Miscellaneous items
Total.
$19,536,135
13,388,654
14,859,924
23,415,941
82,590,108
48,282,620
1,447,715
1,074,397
$204,595,494
All through the year the Grain Growers Guide of Winnipeg
and the Farmers' Sun of Toronto put up a clever, aggressive
fight against the Government and the Tariff. Much was made
/ of a speech delivered by Mr. Meighen in the Commons on Jan.
'l 18, 1911, when in Opposition, and in moving a Resolution favour-
ing "substantial reductions on agricultural implements." In
this speech he charged the Laurier Government with trying to
continue the Conservative protective policy despite preceding
pledges of abolition, and with having forgotten the ."guiding
principle of the National policy" that: "As our industrial in-
stitutions advanced in strength, and, as they were able with
every advance to acquire a hold on the home market, the import
duties were to be diminished and adjusted in order to meet the
evolving and changing conditions. It is that restraining, guid-
ing, principle which I claim this Government has entirely over-
looked, and, as a consequence, they have allowed Protection to
run rampant, and th^y have, for reasons that are only too ob-
vious, become the slaves of those who helped them into power
and who now maintain them there behind the ramparts of gold."
This was widely used and applied to Mr. Meighen, himself, and
to his Government.
THE PROGRESSIVE'S POLICY; MR. CRERAR AND THE FARMERS 467
The New National Policy of the Farmers — freer trade and
lower duties and reciprocity — was eulogized, in varied leaflets, .,/
as fostering the development of natural resources and of in-
dustries based on them instead of upon artificial interests.
The United Farmers, in most of the Provinces, had their own
local literature based upon that of the Canadian Council of
Agriculture, but with considerable variations at times. In On-
tario, the U.FjO. issued 9 leaflets which denounced class legisla-
tion as typified in the Government and the tariff interests ; asked
where were the 1,000,000 people lost to Canada, according to
the Census, in the past ten years; dealt with the 370 millions-,-
of free goods, from which 204 millions were described as pro-
ducts helping protected manufacturers and not the consumers; ,
advocated the Initiative, Referendum and Recall as a "trust- *
worthy and effective policy" ; supported Proportional Repre- ^/
senation and deplored the continued decrease of rural popula-
tion and increase of urban population; denounced the Mer-
chantile Marine and re-published the Platform of the Council
of Agriculture.
In Alberta, the U. j?. A. issued a series of leaflets. In these
special attention wajfllrawh to the fiscal opinions of Sir Lomer *
Gouin, as indicating the necessity of Western Liberals support-
ing the Progressives ; the Party system was denounced as a
failure from both a business and national standpoint; H. W.y
Wood's policy of Group organization was defended and advo-
cated with an address along these lines by Mrs. Walter Parlby
published in full; Mr. Wood's action in condemning efforts to
amalgamate Groups with different viewpoints was endorsed as
producing "confusion and disorder" ; co-operation between Farm- y
ers and Labour, however, was urged so far as voting strength
was concerned ; the Sales Tax was suggested as a more equitable
form of taxation than the Tariff; Sir Lomer Gouin was de-
nounced as "the Czar of Quebec," and it was declared that Pro-
tectionists in the East were combining to isolate the West ; the
leaders of the "Made in Canada" campaign were described as
using Foreign-made motor cars, and many individual cases were
quoted.
The Progressives and the Grain Enquiry. This subject was
warmly and constantly debated during the Elections and during
the first part of the year, also, was conspicuous in Western dis-
cussions. The Western farmers in 1920 and 1921 were not
satisfied with the grain dealers' conduct of their business and
the abolition of the Wheat Board, with a succeeding de-
moralization in prices, enhanced this feeling. Government con-
trol of grain marketting was a means of relief under considera-
tion, and was increasingly advocated ; it was, naturally, not en-
tirely favoured by Mr. Crerar and those interested in the Mani-
toba United Grain Growers or in other Provincial organiza-
tions established by the farmers to facilitate the sale or ship-
ment of their products. To a considerable extent, at this period,
468 THE CANADIAN ANNUAL REVIEW
the North-West Grain Dealers' Association and the United
Farmers' Grain Companies controlled the Western grain trade
between them ; how far they may have controlled prices or
actually affected the situation to the detriment, or otherwise, o£
the farmers was a point of controversy into which politics in-
evitably entered. There certainly was no proven relationship
between them.
In the Commons, on Feb. 24, R. C. Renders, who had been
President of the Manitoba Grain Growers' Association, but had
differed with that body, and was now supporting the Meighen
Government, declared that "the handling of the wheat crop was
the question of paramount importance" in the West : "Rumours
are rife, charges and counter-charges of wrong-doing are in the
air, and the result is that the minds of the Western producers
are agitated abnormally on this question. The dismissal of the
Canada Wheat Board meant that the business of handling our
wheat reverted back to the Grain Exchange, to the old system
of grain handling. Some of us were seriously disappointed
when that reversion took place. The Grain Exchange began to
function. In a very short time the price of wheat began to drop.
I do not know whether it is necessary for me to point out why
these prices dropped. I know that large bodies of responsible
farmers considered that the grain exchanges were to blame."
He specified, though not in very detailed form, various charges;
the United Grain Growers were not mentioned. Other speak-
ers, especially Government ones, urged an Enquiry into the
whole system, and there were direct efforts to include the Grain
Grower Companies in the charges — some taking the form of
allegations that the Elevators shipped more grain than they
received from the farmers. There was much general discussion
of the matter and, on Apr. 11, the Government announced the
appointment of a Royal Commission, composed of Hon. J. D.
Hyndman of the Alberta Bench, W. D. Staples of Fort William,
J. H. Haslam of Regina, and Lincoln Goldie of Guelph. It was
understood that H. W. Wood of Calgary .was invited to join the
Commission but declined. The points for investigation were
officially stated as follows:
1. The grading and weighing of grain.
2. The receiving, handling, and shipping of grain through country
elevators and from country points.
3. The operation of Grain Exchanges by the members thereof.
4. The handling of grain at terminal points ; the holding of grain at
terminal points.
5. The operation of public and private terminal elevators and East-
ern public elevators.
6. Operation of the Lake Shippers' Clearance Association, and of the
North-West Grain Dealers' Association.
7. The trimming of grain at the upper and lower Lake ports and
Ocean ports.
8. Lake shipments; the shipment of grain to Atlantic and Pacific
ports ; the operation of Canadian flour and feed mills.
THE PROGRESSIVE'S POLICY; MR. CRERAR AND THE FARMERS 469
It was at once asserted in political circles that the chief
object of the Commission was to cast discredit, if possible, upon
the Grain Growers' Companies; Mr. Justice Hyndman, in Win-
nipeg, on Apr. 28, said he had heard these rumours but that
there was no truth in such an assumption. The Grain Growers'
Guide of May 4 would not accept this statement, and, without
reflecting in any way upon the Judge himself, maintained that
the Commission was appointed to produce information and
bring forward recommendations of a character to create divi-
sions among the ranks of the Western farmers and destroy the
effectiveness of their political movement. On May 9th, follow-
ing, the Western members of the Canadian Council of Agri-
culture met in Winnipeg and passed the following Resolutions :
1. That the Board of Grain Commissioners for Canada, if composed
of capable men, sympathetic to the purpose for which it was appointed,
would be competent to deal with all matters pertaining to the grain
trade of Canada.
2. That to appoint as a member of the Enquiry Board one who for
nine years (Mr. Staples) has sat as a member of the Board of Grain
Commissioners, and whose failure properly to administer the Grain Act
would constitute the principal ground for appointing a Board of En-
quiry, is a fundamental breach of the principles of any enquiry con-
ducted in the spirit of British law, and, therefore, is highly undesirable
in the public interest.
3. That any design on the part of the Government, as suggested in
the columns of the press in many quarters of the Dominion, and by
speeches from public men, to have the recently appointed Grain En-
quiry Board used against the organized Farmers' movement in the West
for partisan political purposes, is a prostitution of Governmental auth-
ority, and will be resented strongly.
4. That, as the accredited representatives of the great body of
grain producers of Western Canada, and as having intimate knowledge
and experience of the disastrous conditions obtaining in these Prov-
inces due to prices for grain having fallen below costs of production, we
are vitally interested in every phase of the problem of grain marketting,
and are persuaded that improvements must be effected, and consequently
would heartily welcome a genuine Enquiry for the purpose of bringing
about such improvements in facilities for grain marketting as would
ensure to the farmer a fair price and a stable market.
On the following day the Directors of the United Grain
Growers, Ltd., met and (decided by formal Resolution to apply
to the Courts for an injunction which would restrain the new
Board from enquiring into the affairs of the Company should
it attempt to do so. The Enquiry began in Winnipeg on May 23,
with Judge Hyndman as Chairman, and he stated that its object
was : "To ascertain all the facts surrounding the handling, financ-
ing, transporting and marketting of grain, beginning when the
farmer hauls his goods to the railway, whether to elevator, mill
or loading platform, and tracing it until it reaches the ships for
delivery in an ultimate market. Necessary tolls are exacted at
various stages of its progress, and it is incumbent upon us to
examine each step to find out (1) whether or not each step is
essential, and (2) whether the tolls are fair and reasonable; also
if the present systems of grading, weighing and dockage are
470 THE CANADIAN ANNUAL REVIEW
the best obtainable, always keeping in view that which is prac-
ticable under existing conditions. Our investigation will also
carry us into an examination of the Banking methods in vogue
and the system of marketting through grain exchanges. It
may be that in the progress of the investigation allegations will
be made against specific parties. Before accepting such as facts,
satisfactory evidence will have to be adduced and the fullest
opportunity will be granted such persons to meet these charges
(if any)."'
R. A. Bonnar, K.C., and W. W. Kennedy acted for the Com-
mission, Isaac Pitblado, K.C., for the Winnipeg Grain Exchange,
and Matthew Snow for the North-West Grain Dealers. A series
of witnesses were examined and the Commission was at Gretna,
Man., on the 25th, at Carnduff, Sask., on the 27th, at North
Portal on the 29th, at Weyburn on the 30th, at Assiniboia on
June 1st, at Shaunavon on the 3rd, and at Maple Creek on the
4th. At points near the border many of the witnesses were
Americans. A special meeting was arranged for Fort William
on the 4th, and here the first charges touching the Grain Grow-
ers developed. The Secretary of the Commission, Charles
Birkett, under powers given by Order-in-Council, was tempor-
arily appointed by two of the Commissioners to act for the
Board. The chief witness, on June 4th, was R. J. Henderson,
formerly employed by the Grain Growers' Grain Co. as Superin-
tendent of their Elevator at Fort William, and he stated* that
he had accused the Company of using false bottoms in weighing
grain, of transferring $50,000 in profits from the Terminal
Elevator to the Export branch, of shipping 2,000,000 bushels of
wheat, in 1912-13, without warehouse receipts, of not giving
the C. P. R. credit for a matter of 40,000 bushels of wheat. He
also stated that these accusations had been laid before the
Grain Exchange two years before this.
An affidavit as to false bottoms in certain Elevator bins
was also submitted from another former employee — Jamies
Kittridge — but he did not appear to testify in the matter. J. R.
Murray, Asst. General-Manager of the Company involved, pro-
tested vigorously (June 6) against this meeting as a secret,
hole-in-the-corner one, and as planned for the purpose of ex-
ploding upon an unsuspecting public "the bombshell" which, he
said, was so generally expected at Ottawa when the Enquiry
Board was first suggested in Parliament. The only Counsel
present, he stated, was Mr. Bonnar, and no public notice was
given as to the sitting. On June 8 Mr. Crerar, President of the
Company, arrived in Winnipeg from Ottawa and at once issued
a statement denying the charges absolutely:
The United Grain Growers, Ltd., have nothing to conceal from any
impartial tribunal. Its record in the past is evidence of this. For ex-
ample, before the Cost of Living Committee of the House of Commons
*NOTE.— Despatch in Torbnto Globe of June 5th and in the press generally; Evidence reported
at length in Wirnipeg Free Press of June 6th.
THE PROGRESSIVE'S POLICY; MR. CRERAR AND THE FARMERS 471
in June, 1919, everything that was asked for was produced in the utmost
detail, and again when Price, Waterhouse & Co., investigated the
terminal elevators, everything asked for was produced. The present
Commission, however, has confirmed our suspicion at the time of its /
appointment that it is not impartial, but was appointed purely for *
political purposes — in other words, to discredit me, and to injure as far
as possible the Grain Growers' movement.
The proceedings at Fort William were denounced as high-
handed and illegal ; the Company's solicitors had even been re-
fused a copy of the evidence. He then took up the charges in
detail — as given in the press, and refuted them to the satisfac-
tion of his friends and his party. They were, of course, used
largely in the ensuing Elections, and especially in respect to the
injunction which came later. Meanwhile, the Commission
proper, after leaving Maple Creek, Sask. (June 4), proceeded to
Medicine Hat, Alberta, on the 6th, and was at Lethbridge on
June 7-8, at Macleod on the 9th, at Nanton on the 10th, and
Calgary on the 13th. Very largely, the evidence was a repeti-
tion of that heard in Saskatchewan. The farmers declared their
satisfaction with the Wheat Board and its handling of the 1919
crop, condemned gambling in options on the Grain Exchange,
favoured the cleaning of grain either on the farm or at country
elevators, claimed that shipping weeds and other dockage to the
terminals was a wasteful practice.
Following the Fort William episode the United Grain Grow- .
ers, Ltd., took action and applied to the Courts for an injunction *
restraining the Commission from further enquiry. On June 13,
Mr. Justice A. C. Gait granted an interim injunction, to take
immediate effect, with the question of a permanent one to be
heard on June 22. The statement of claim in the matter alleged
that the Order-in-Council by which the Commission was ap-
pointed, was "wholly illegal, unlawful and void," and was issued
without any lawful authority. A declaration was sought that
the Canada Grain Act and its amendments were ultra vires and
beyond the powers of the Parliament of Canada to enact. The
plaintiffs also sought to have the Commission restrained from
further action and for a ruling that it was not authorized to take
evidence under oath or to make reports. Judge Hyndman
stated, in comment, that the Commission had intended to hold
an early sitting in Winnipeg and hear all sides in regard to the
Fort William meeting; he thought the order of the Court might
only apply to Manitoba, but decided to accept the order. The
Toronto Globe estimate of the situation (June 15) was that:
"The Enquiry has proceeded far enough to arouse suspicion, but
not far enough to justify any expression of opinion. A thorough
ventilation is demanded by the magnitude of the interests in-
volved as well as by considerations of business integrity.'*
C. Rice-Jones, General Manager of the Company, issued a
statement, on June 18, that the charges were political, that the
36,000 shareholders of the United Grain Growers were satisfied
with the Company, that two exhaustive enquiries, honestly con-
472 THE CANADIAN ANNUAL REVIEW
ducted, had failed to find anything wrong. Speaking at Souris,
Man., on June 22, Mr. Crerar described the whole Fort William
episode as a ''distortion of justice," and the Grain Enquiry to
be "political in complexion and character." On the same day
the case for a permanent injunction came before Mr. Justice
J. P. Curran of the Supreme Court, in Winnipeg, with a great
array of lawyers before him and an equally varied expression of
views. Aside from the alleged illegality of the Canada Grain
Act and the absence of power in the Government to appoint
such a Commission, the chief contention was that the powers
granted were issued to 4 Commissioners as one body without
any right to sit separately. The Judge, eventually, withheld his
decision but, on July 11, issued a judgment declaring the Com-
\/ mission's appointment by Order-in-Council invalid and confirm-
ing the interim injunction.
Following this incident, Mr. Crerar wrote, on June 13, to
D. C. Coleman, Vice-President of the C. P. R., at Winnipeg, and
asked him to investigate the charges so far as the Railway was
concerned; this was promised, and on July 11 Mr. Coleman
wrote to Mr. Crerar stating that, after careful investigation:
"We are convinced that a proper accounting was made to us for
all of the grain in the Elevators, when turned over to your Com-
pany." Meanwhile, on June 29, Mr. Crerar had written to L. H.
Boyd, K.C., Chairman of the Board of Grain Commissioners, en-
closing a copy of Henderson's evidence at Fort William and
asking him to undertake the most thorough investigation pos-
sible, under oath, and with all the assistance the Company could
give ; a reply was received expressing willingness to undertake
the Enquiry as soon as other business was got out of the way.
On Aug. 6, R. J. Henderson issued an open letter re-affirming
his charges and inviting enquiry by the same Board.
On Sept. 26 a Government appeal from the decision of Mr.
Justice Curran was heard in the Manitoba Court of Appeal;
after several days' hearing of elaborate legal opinion, judgment
was held over; on Nov. 14 it was announced that the Curran
judgment was dissolved, and that the Royal Grain Enquiry Com-
j mission was a legally constituted body entitled to proceed with
its investigation of the Canadian grain business. Mr. Premier
Meighen, speaking on the same day at Carman, Man., stated
that it was the duty of the Commission to go on and that he
had wired Judge Hyndman accordingly. Meantime, on Nov. 4,
the United Grain Growers' Co. had issued a statement as to in-
vestigations which they had been carrying on and which show-
ed that during Henderson's term as Superintendent of the Ele-
vator, duplicate slides (pieces of sheet metal less than two feet
square) were put in the spouts of some of the small bins; that
the effect of this was to prevent grain running out of these
pockets when the valves were opened in the usual way; that
this might result in a quantity of grain being concealed at the
annual weighing-up, if the Government weighmen and inspect-
THE PROGRESSIVE'S POLICY; MR. CRERAR AND THE FARMERS 473
ors were careless in the performance of their duties. The time
in question was 8 years before and the Company, lacking power
to examine anyone under oath, stated that they had been unable
to determine whether or not a crime against the Company was
actually committed. In order to get at the facts they had asked
the Grain Commission to undertake a full investigation. At
Basswood, Man., during the Elections (Nov. 19) Mr. Crerar
made an elaborate speech which, was widely published, review-
ing the whole question and the charges made ; on Dec. 5 leave
of appeal from the Manitoba Court of Appeal was granted, and
the subject remained open for Election controversy.
During the Elections it was the basis of many attacks upon y
the Progressives as a party. R. C. Renders, who had campaign-
ed in Ontario for Mr. Meighen, charged Mr. Crerar and his
Company there and, later, in the West with preventing the en-
quiry for reasons which he stated. At Neepawa, on Oct. 4, he
dealt with his demand in Parliament for an enquiry, and his
speech took up nearly a page of the Winnipeg Free Press ; he
repeated the charges as to the secret shipment of grain and the
use of false bottoms. Brig.-Gen. H. M. Dyer, D.S.O., a pioneer
grain grower of Manitoba, who was Government candidate
against Mr. Crerar in Marquette, made, for some time, daily ad-
dresses charging the Progressive leader, as head of the United
Grain Growers, Limited, with making big profits out of the busi-
ness, while the average farmer member of the organization was
not benefitted and the shipping and marketting facilities on the
prairies were no better for the grain men than they were be-
fore the Grain Growers' organization entered the field. In re-
sponse to this Mr. Crerar issued an Address to the constituency
denying any personal profits whatever, promising to meet the
issues shortly on the public platform in Marquette and declar-
ing that his critics and opponents were "seeking to divert the
mind of the people from the real issues which so seriously con-
front the Dominion" by raising the "class" cry against the
farmer, by impugning the loyalty of those who supported the
Progressive movement in Western Canada, and by directing, in
a most unscrupulous manner, personal charges against himself.
In a speech at Walkerton on Oct. 21, Mr. Crerar stated that his
total annual dividends from the United Grain Growers, Ltd., did
not exceed $10.00.
The Clark-Crerar Controversy and the Elections. Mean-
while, the views of Dr. Michael Clark, Liberal Member of Par-
liament in 1908-17, a Liberal-Unionist until 1920, and a follower
of Mr. Crerar during the ensuing year, became prominent owing
to his renunciation, just before the Elections, of his affiliation
with the Progressive party. On Sept. 14 Dr. Clark wrote to
Mr. Crerar from Edmonton that he must not count upon him /
as a candidate in Alberta and gave, as his chief reason, the ad- v
vocacy by the United Farmers in that Province of the Group
system of government as propounded by H. W. Wood, President
474 THE CANADIAN ANNUAL REVIEW
of the U. F. A. : "Mr. Wood, whose organizing ability is great
and admirable, seems to think he has found something new in
the idea of group government. It is as old as the hills. True
Liberals fought it in Britain and Canada alike, under restricted
franchise, and as people rightly struggling to be free. The
House of Lords, the Family Compact, the Manufacturers' As-
sociation, and the junkers and militarists of Germany are each
and all examples of group government, and the progress of
humanity has been proportionate to its ability to free itself from
the domination of these groups. Class consciousness is none
the less class selfishness, and therefore doomed to die, because
"*it suddenly appears in Farmer and Labour parties."
On the 19th the Progressive leader replied from Winnipeg
and described Mr. Wood's views as "related, mainly, I think,
to methods of organization," and, in any case, as having no part
in the Platform of the Progressive party: "The slender im-
plication in your letter that I have submitted to the idea of class
domination is entirely unwarranted. As stated, that idea is in
no sense a part of our programme. I do not believe in class
legislation, nor do I believe in class domination." Dr. Clark
(Sept. 20) accepted this "emphatic endorsation of my opposi-
tion to the economic group in politics and to class legislation
and attempted domination" as an important contribution to cur-
rent discussion. He denied, however, that the "group" policy
was a matter of organization, and cited the recent canvass in
the Alberta Provincial elections, the political position of the
United Grain Growers, Ltd., whose shareholders, he alleged,
were "in politics as a group," and the current announcement
that "a gentlemen's agreement exists between the Independent
Labour Party and the Farmers," as to the Tariff. He still agreed
with Mr. Crerar regarding the Tariff but present co-operation
on other issues was impossible. This correspondence was wide-
/ ly published and, naturally, was made much of by the Liberal
and Government press and speakers.
Mr. Crerar*s Platform, Policy and Manifesto. During the
year the Progressive leader made a number of speeches but
not in quite the same proportion as the Premier and Liberal
leader until the Election became imminent. His opening speech
of the campaign was at Brandon, on Oct. 5, and in it he strongly
denied that he favoured class government, challenged the Gov-
ernment to show the source of its campaign funds, admitted
that he was unalterably opposed to the Tariff policy of the
Dominion, charged that "big business" was attempting to control
the Election for sinister purposes as, he insisted, it had con-
trolled past Parliaments in Canada, and urged that a plot was
y afoot to return the National Railway System to private owner-
ship and establish a monopoly of transportation. In defending
the Agrarian movement he said : "The farmer is both a capital-
ist and a labourer. He owns his land and works with his hands,
and his investment is in his property. Do you think, therefore,
THE PROGRESSIVE'S POLICY; MR. CRERAR AND THE FARMERS 475
that the farmer will be a 'free wrecker' and attempt to tear
down existing institutions? There is nothing to it. Nor is
there anything to the claim that if the National Progressives
are returned to power, our legislation will be class legislation,
or that there may be a class domination. Let me say I detest
class domination and class legislation. This movement is in
all essentials a movement of Liberalism ; I mean the spirit of
liberalism that overran Italy, that is working its way through
every Anglo-Saxon country in the world."
As to the Tariff, he said: "I stand opposed to the prin-
ciple of Protection and I trust I ever shall. Our policy rests
on this consideration, that the wealth of Canada can be best
developed or added to by developing the natural resources of
this country. Agriculture is an industry, as are lumber and
timber developments. These are the real great industries of
Canada. If you take the total exports of Canada last year,
more than one-half had its origin on the farms of Canada,
x x x A Protective tariff is an arbitrary interference with
the natural process of trade. If tariff protection is good, why
not make it absolute so as to keep out imports altogether,
x x x I ask you, when it requires Protection for an industry
to compete in Canada, in the home market, how on earth is it i
going to export ? And when it is able to export, why then does
it need any Protection at all?" As to the rest: "There is an-
other fundamental truth — that you cannot sell unless you buy
and that in the great general scheme of international trade,
goods are paid for in goods." Prosperity had been caused in the /
past by Immigration and the opening up of fertile lands, and not
by Protection. Upon the Railway problem he was explicit:
Let me say most emphatically that wherever the solution is to be
found it must not be along the lines of fastening a Railway monopoly
upon the Dominion. There are some of our statesmen in Eastern Canada
who would turn the roads back to private ownership. Our Railway dif-
ficulties cannot be solved in that way. Wherever you go in the financial
markets of the world there are no securities so unattractive as railway /
securities. We cannot hand back the railways to private ownership *.
without terrific loss, and those who would hand them back are not reck-
oning all of the facts. We have built railways beyond our needs, we
have more miles of railway per thousand of population than almost any
other nation. We have railways enough for twenty million people. We
must shape the policy of our railways to bring in more population, and
we must keep the people here when we get them.
In his nomination speech at Shoal Lake (Oct. 7) Mr. Crerar
referred again to the Progressive movement as embodying the
new Liberalism of Canada ; devoted some space to denouncing
Mr. Renders as recreant to his old faith and the Farmers' or-
ganization he had helped to build up, and as having signed a
pledge to support the Government through thick and thin ; de-
scribed the Grain Enquiry as purely political and declined to
discuss it in detail ; declared that there were other issues than /
the Tariff and especially the Railways, the domination of the *
Big interests, and reduction of the National Debt. As to the
\,
476 THE CANADIAN ANNUAL REVIEW
Tariff: "My position and the position of the Progressive party
is this, that the principle of Protection is unsound as a fiscal
policy for Canada. I want to say, also, that for purposes of
revenue it will be necessary to raise a considerable amount of
money by tariffs for a number of years at any rate, but there
should not be a tariff that is based on the principle of Protec-
tion." On Oct. 17 the Progressive Leader issued a Manifesto
to the people of Canada. In it he declared the Tariff an im-
portant question, but the "supreme issue" was "whether our
Government is to be free or fettered, and whether legislation in
ic future shall be for the few or the many." The Address was
too long to reproduce in full, but the following quotations will
indicate its character and are taken with due consideration to
the context :
To an alarming degree the belief has grown, and prevails, that the
agency of government has been used for the furthering of personal, or
sectional, or class interests, and that special interests have been able to
influence legislation to their own gain, at the expense of the public weal.
This must be set right.
No one who has studied closely the Farmers' movement, so-called,
in Canada but will admit it has imperfections. But no one who studies
it and is honest will deny that it embodies an inspiration for purity in
government, for higher standards of public morality and for the sweep-
ing away of special privilege in all its forms.
It is a fact beyond dispute that in the past campaign funds have
been provided by railway promoters, by manufacturers, or by other in-
terests which were actuated, not by any desire whatever for the public
welfare, but solely by the sordid hope of getting benefits in the way of
legislation and by administrative favouritism from the party they assist-
ed in returning to power. It is not too much to say that the deplorable
and serious railway situation which we have in Canada to-day is, in a
. very large measure, the off-spring of this system, x x x We (the
I Progressives) are free men and we want a free Parliament, and to that
^ end scores of thousands of voters throughout Canada are providing the
funds necessary to carry on the election campaign.
The National Progressives have certain definite constructive policies
upon which they invite the judgment of the Canadian people. In this
connection we place in the front rank the fiscal and trade policy of this
( country. Where does the source of our national wealth lie? It lies in
\\ )\\ke development of our fertile lands, our forests, our mines and our
YY ^fisheries. It does not lie in importing raw material and turning it into
Manufactured goods under high Protection.
There is also the moral aspect of the protective system. Nothing
that is morally wrong is economically wise. It is a notorious fact that
many companies carrying on a manufacturing business in Canada have
been re-organized, and re-organized again, through the agency of the
stock promoter. Watered'stock to the extent of millions of dollars has
been injected into the capital of many of these companies enjoying the
highest Protection. The owners of this stock— worthless at the time it
was issued — have since reaped huge profits from it through the operation
of the tariff.
What then are our proposals? Our goal is the ultimate elimination
Jof the principle of Protection in pur fiscal policy. But we recognize that
changes must be brought about in a manner that will give a fair oppor-
tunity to Canadian industries, now enjoying protection, to adjust them-
selves to them. To the end that our agricultural resources may be de-
veloped in the fullest degree possible, we propose removing the duty
from agricultural implements; and also from much of the mining and
sawmill machinery for the encouragement of these industries. To lessen
THE PROGRESSIVE'S POLICY; MR. CRERAR AND THE FARMERS 477
the cost of living: a substantial reduction in the general tariff should be
made and, especially, upon those things that come within the category
of the necessaries of life. Essential foods we shall also place on the
free list. .
We must rigidly bring our public expenditures within the limits of ^
our public income, and that at once. We should have some co-ordination
of financial policy for the Dominion as a whole and some understand-
ing reached, particularly between Federal, Provincial and Municipal
authorities, as to the relative fields of taxation and of expenditure.
Drastic economy in public administration must be introduced and carried
through.
Markets for Canadian products must be found, and when we come V*
to a consideration of this, without doubt, the great country to the south
of us comes to mind. It is true that to-day the United States has put
restrictions upon trade with Canada. It is a mistake to think that this
has been done in a spirit of hostility to Canada. They very naturally
have assumed that we are not anxious to trade with them, for we said
so in 1911. Canada must always maintain her self-respect, but it is not
derogatory to that self respect to go frankly to our great neighbours to
the south and say to them: Let us sit down and reason this thing to-
gether.
The financial position of our National Railways is one of the most /
serious problems of the hour. These roads have come into the hands of
the people through the breakdown of private management, which has
resulted in costly and unnecessary duplication. The plain fact is we
have enough railways in Canada to serve the needs of a population
double what we now have. What we need is more population to provide
more freight and passenger traffic, and this will come and remain here
only if the country is prosperous. With population and business these
roads can be turned into a good asset, and this potential value must not
be sacrificed;
On Oct. 17 Mr. Crerar commenced, at Brampton, Ont., a
campaign in which he was aided at various meetings by Hon. "
E. C. Drury, Progressive Premier of the Province, J. J. Morri-
son and R. W. E. Burnaby of the U. F. O., and different mem-
bers of the Provincial Cabinet, including Hon. Manning Doherty.
Much of Mr. Crerar's speech was devoted to the alleged special
Protection given to concerns like the Dominion Textile Co. ;
"The whole of the Canadian people from one end of Canada to
the other have been penalized, in order to give employment to
a few thousand people working in the cotton mills. Do cotton
textiles need the protective duty which they enjoy at the present
time?" He promised moderation in treatment of these interests,
however, if returned to power: "The Progressives would have
as their goal the future elimination of protective tariffs, but y
they realize that industries built up under such tariffs would
suffer if the tariff were swept away all at once."
Mr. Crerar was at Woodstock on the 19th, and gave the
cream separator manufacturers as an illustration of what could
be done without Protection ; he was at Wingham and Seaforth
on the 20th, and at the latter place illustrated his claim that the
tariff had been operated to keep the cost of living up and to
enrich vested interests by naming the Ames, Holden, McCready
Co., Ltd., footwear manufacturers, the Dominion Glass Co., and
the Sherwin-Williams Paint Co., Ltd. He was at Walkerton on
478 THE CANADIAN ANNUAL REVIEW
the 21st, and here he spoke of the Grain Enquiry and said that
W. D. Staples was a politician, that two other Commissioners
had been unfriendly to his Company, and that R. A. Bonnar was
personally hostile ; he was at Shelburne on the 22nd, supported
by J. J. Morrison and Miss Agnes MacPhail, and continued his
attack on alleged Tariff-produced mergers with the Dominion
Textiles as an illustration. During this first week he spoke at
other places than those mentioned, which were sandwiched in,
and sometimes made two or three speeches at one place.
A Maritime Province campaign was started at Woodstock,
N.B., on Oct. 25, and here, in dealing with Government refer-
ences to H. W. Wood as "the man from Missouri," he stated
that in the Farmers' Government of Alberta there was not a
member who was not either of British or Canadian birth. His
answer to the Home market contention was that Canada pro-
duced 300,000,000 bushels of wheat and the people of Canada
could only consume 75,000,000 bushels ; that Canada exported
190,000,000 pounds of cheese without any regard to the home
market. At Sussex, on the 27th, he declared that Mr. Wood was
a Canadian citizen and British subject, naturalized ten years be-
fore this time, and that Sir R. Borden, in 1917, had invited him
to join his Union Cabinet. Here, G. H. Perkins, the Agrarian
^candidate, supported the Recall, and said he would put his resig-
nation in the hands of six men and that unless he "made good
they could make him come back and go to work." He spoke at
Antigonish, N.S., on the 28th, and at Sydney on the 29th ; on
Nov. 1st he was at Summerside, P.E.I., and here he claimed that
in the mergers of 200 concerns approximately $215,000,000 of
watered stock had been included. He also declared that the
future of Canada lay in world trade, and in the development of
industries based upon the natural resources of the country.
Charlottetown and Georgetown were visited on Nov. 2nd,
and, in reply to questions about revenue and taxation, he stated
that the purpose of a protective tariff was not to raise revenue
but to keep competing goods out, and a more moderate tariff
would permit more foreign goods to come in and yield more
revenue ; that the Land-tax proposed by his party was one upon
wild lands held by speculators. He was at Amherst on the 3rd.
Mr. Crerar spoke at Ottawa on Nov. 5, and advocated a change
in fiscal policy that would remove "state aid from special in-
terests," and prevent "combines and price control," which were
obstacles in the way of the development of natural resources
and of growth in population. He denied the existence of an
alliance between his party and the Liberal Opposition. He
/dwelt at length on campaign funds, and alleged that the Prime
* Minister had not responded to his challenge to disclose the
source of the money the Government was spending for election
expenses, and asked why it should now try to get back into office
through advertising! The solution of the Railway problem of
the country, he said, lay in a policy that would double the popu-
lation. His ensuing Ontario meetings were as follows :
PROGRESSIVE'S POLICY; MR. CRERAR AND THE FARMERS 479
Smith's Falls.... Nov. 7
Toronto Nov. 11
Prescott (evening)
Kingston
Napanee (evening)
Picton
Oshawa
7
8
8
9
10
Guelph
Stratford (evening) ...
Dunnville
Brantford
Milton
12
12
14
14
15
Barrie (evening) Nov. 15
At Prescott Mr. Crerar stated that a subsidiary of his Grain
Company doing business in New York had made a profit of
$553,000 in one year in handling 86,000,000 bushels of grain; it
was almost entirely United States grain, handled with money
borrowed from American banks, and the net profit was about
three-quarters of a cent per bushel; as a business matter he was
proud of this record. Here, he also stated that: "If we are re-
turned to power one of the first things to be done will be to
open negotiations with the United States with a view to secur-
ing Reciprocity in natural products." His Toronto meeting was
addressed by Mr. Premier Drury and by Miss Mary McCallum,
Ass't Secretary of the Canadian Council of Agriculture. Mr.
Crerar, here, criticized the form of Canadian representation at
the Washington Conference : "This question of Canada's status
is an important question. We should have some declaration
from the Prime Minister of Canada as to why Canada is not
represented at Washington to-day in this great Conference in
the same way as she was at Versailles, and as she is in the
League of Nations. We should be represented at Washington
in our own right, or we should not be represented there at all."
He declared that agriculture was in a more critical condition
than it had been at any time within the past 20 years, and that
wheat, which sold a year before at $2.50 per bushel, was now
selling at $1 in the elevators, the farmer getting about 75 cents
per bushel. What good was the Home market under these con-
ditions? At Stratford James Simpson of Toronto spoke with
Mr. Crerar, and attacked both Senator Robertson and Mr. Mur-
dock. In a letter written from Dunnville, on Nov. 14, to E. A.
Partridge of Sintaluta, Sask., Mr. Crerar did not appear to be
very favourable to a Wheat Board, and for this year the dif-
ficulties were stated to be insurmountable; he declared that /
"an immediate, substantial reduction of freight rates, particular- *
ly on grain, would give some relief, and should be made at once."
He added that the Progressive platform did not demand a Wheat
Board, and that Western farmers were not agreed on any one
policy as being the most suitable solution of this question:
"For the permanent solution of the marketting problem I favour
co-operative effort on the part of the farmers themselves, and
any reasonable measure of Government assistance that may be
necessary to help it to success will be entirely justified."
During this Ontario tour Mr. Crerar had large meetings,
and was acclaimed constantly by other speakers as the next
Premier of Canada ; he made few, if any, references — except an
indirect one in Toronto — to Canada's relations with the Empire
480
THE CANADIAN ANNUAL REVIEW
or with the outside world apart from an occasional Reciprocity
utterance; he was at St. Boniface and Norwood in Manitoba on
Nov. 17, and declared that the Progressive movement was grow-
ing rapidly. Following this, he addressed other meetings in the
West — Basswood on the 19th, when he made an elaborate de-
fence against the Grain Enquiry charges, and Roblin, on Nov.
22 ; he was at Humboldt, Sask., on the 23rd, and at Saskatoon on
the 24th, when he dealt for some time with the National mar-
ketting of grain, and was, he said, in favour of the re-establish-
ment of the Wheat Board if it would tide over, or ameliorate in
any degree, the present lamentable marketting conditions. He
was at Regina on the 27th, and dealt at length with Wheat mar-
ketting and the Meighen Pool proposals; reiterated his grave
doubts as to the advisability of a permanent Wheat Board, and
declared that the "farmers of Western Canada could more ef-
fectively market their grain through their co-operative organi-
zations, created for that purpose, backed by any reasonable
assistance from Governments to help them carry the grain until
marketted."
For an emergency the Board might be revived, but he did
*not believe it would do all that was claimed for it. As to the
Tariff: "Protection has not assisted agriculture or furnished
it with a home market. On the contrary it has added to the
cost of everything the farmer needs and has discouraged the
production of wealth." Here, and elsewhere throughout this
week, Miss McCallum also spoke as to the place of women in the
contest. At Hamiota, Man., on Nov. 29, Mr. Crerar admitted to
his meeting representatives of General Dyer, the Government
candidate, and L. St. George Stubbs, the Liberal candidate
against himself, and did so, also, at Foxwarren on the 30th. He
was at Portage la Prairie on Dec. 1st, and spoke for Harry
Leader, who was destined to defeat the Prime Minister. He
was at Binscarth on the 2nd and Minnedosa on the 3rd. At
Portage he had dealt with the Elevator overage question, and
said that he had urged in the House of Commons that the
Government should take all the overages on condition that it
guaranteed the elevators against shortages: "When it comes
to overages," he added, "there is no bigger sinner in the whole
category than the Canadian Government Elevator, because there
is no single Elevator that had bigger overages in proportion
to the quantity of grain handled during the past few years." As
to this the Grain Growers Guide of Nov. 23 had given the follow-
ing figures for 1916-17:
Percentage Revenue from
Elevator Profit Overages
Consolidated 30-44 $77,360
C.P.R 16-68 50,320
Eastern Terminal „ 7-08 33,755
Empire and Thunder Bay 43-54 309643
Fort William 50-65 281,861
United Grain Growers 23-25 156,901
Ogilvie's 12-76 16,653
Western Terminal 27-76 94,590
Canadian Government 36-72 332,187
Port Arthur 29-00 388,057
Grand Trunk 27-93 305,882
ISSUES IN QUEBEC; SIR LOMER GOUIN AND THE LIBERALS 481
The Issues in
Quebec:
Sir Lomer
Gouin
and the
Liberals.
The leaders of the Liberal party in Quebec
during the Elections were Hon. R. Lemieux and
Ernest Lapointe, with Hon. W. G. Mitchell, K.C.,
leaving the Provincial Treasurership and Legisla-
ture to take high place in the Party counsels; the
entry of Sir Lomer Gouin into Federal politics
made him a National figure, almost at once, as a re-
sult of his 15 years of skilled and successful leadership in Pro-
vincial affairs. The Government party, though putting up a gal-
lant fight with its new French Ministers — Hon. L. de G. Belley,
Hon. R. Monty, K.C., Hon. L. P. Normand, M.D., and Hon. Andre
Fauteaux, K.C. — was from the first almost negligible in the con- /
test, though the running of a candidate in every constituency
(even if many called themselves Independents) was, in itself, a
feat, while the leanings of Quebec toward Protection did give
hopes of a measure of success. The Nationalists effaced them- i
selves at the polls with the exception of the irrepressible >•
Armand Lavergne, an occasional speech from Henri Bourassa,
and the ever-present antagonism of Le Devoir to all
policies which even, indirectly, touched Empire or British
interests ; the United Farmers ran a number of candidates, but
were not hopeful of the result. When Mr. Lavergne was asked
by a Toronto Globe representative (Sept. 14) as to what chance
of success there was for Conservative or straight Farmer can-
didates in three-cornered contests, he said that nobody but a
Liberal could hope to capture a seat, even in the case of a five-
cornered contest!
The key-note to the Liberal campaign in Quebec was given
at a banquet to the Hon. Rodolphe Lemieux, K.C., at Montreal
on Sept. 22, with Sir Lomer Gouin in the chair, and Hon. Mac-
kenzie King as the chief speaker, together with the Provincial
Premier, Hon. L. A. Taschereau, Ernest Lapointe, Hon. Charles
Murphy, and Hon. Jacques Bureau. The speech of Sir Lomer
Gouin was short, but explicit. After a tribute to Mr. Lemieux,
he referred to the general unrest, the unemployment, the fin-
ancial difficulties, the decline in trade, the closing of United
States markets, the chaotic condition of governments and
parties. The state of things in 1896 was described as similar; *
the result of the people in trusting Laurier and the Liberals, /
then, would be duplicated in 1921 : "We have to pay our Debt,
give work to our workers, encourage our cultivators, and find
them markets for their products, bring back prosperity in our
industries and our commerce, and reduce, if possible, the burden
of taxes weighing on the shoulders of the citizens. We must,
and this is a question of salvation or of catastrophe, diminish
our expenditure. The problem of the National Railways must
be settled without delay, so as to make the disastrous deficits
they give us and which we have to pay each year, disappear.
We must also develop our country by increasing our population
in a carefully chosen immigration. As for the Tariff, we will
482 THE CANADIAN ANNUAL REVIEW
have, whether it is called a revenue tariff or any other, the tariff
of Laurier."
Mr. Lemieux spoke at some length and with characteristic
eloquence. One of his first detailed references was to the For-
eign policy of the Borden and Meighen Governments : "The
Dominions enjoy, in the Empire, an autonomy dearly bought,
and every interference in the foreign policy of the British Em-
pire leads us towards Imperialism. The present generation will
have passed, another will come in its place, and it is neither in
the armed camps of Europe nor on the plains of Asia that our
descendants will find the solution of the multiple problems of
Canada. It is here, in Canada, not in any distant adventures,
that our destiny is fixed." A voice in the "orientation of British
policy" was not required; our voice was in the councils at Ot-
tawa, not in London ; this was the course of Macdonald, Tupper,
and Laurier. Financial conditions were dealt with at length,
and then Mr. Lemieux referred to the Railway situation: "I
have already, on several occasions, expressed my opinion on the
Railway question. It was a fatal error for Canada, after the
experience of Great Britain, France, the United States, to
assume the proprietorship of the Canadian Northern and the
Grand Trunk, x x x My personal opinion is that only one
solution has been proposed, and that is the one given by the
most competent man on this continent, Lord Shaughnessy. I
prefer a monopoly to bankruptcy."
Regarding the Tariff he was equally clear: "There can be
no dogma in economic matters. As a pure, abstract theory, Free
trade is the ideal. But the industries necessary to a young
country like ours cannot live on ideals. It is surely not at the
moment when the American Congress is raising its tariff wall
that Canada should demolish hers. In the order of things a
revision of the tariff is necessary, but this is always a delicate
operation, x x x We must harmonize and co-ordinate the
interests of the West and of the East. Agriculture is the funda-
mental industry, but we have six months of winter and we don't
sow wheat in the snow. Our manufactures are fed by Cana-
, dian capital and give work to thousands of men. Unless we are
• j willing to be absorbed by America, we owe a reasonable measure
of protection to our industries." Later in the speech he de-
clared that: "My Liberalism calls for a tariff which protects
the consumer indeed, but also our industries. These results are
by no means incompatible, but may well be obtained by a tariff
for revenue, such as was professed by Sir Wilfrid Laurier."
Once more, also, he touched the Railway situation as "this mad
adventure of State monopolies which will lead us to the abyss
if we do not stop it." Mr. Lemieux concluded with an appeal to
Sir Lomer to come and help ; his alliance with Mackenzie King
would be a gage of assured victory.
Mr. King followed, and dealt with conditions in 1896 and in
1921 ; referred to the note of racial conciliation sounded by Sir
ISSUES IN QUEBEC; SIR LOMER GOUIN AND THE LIBERALS 483
W. Laurier, which was finding signal results to-day in South
Africa as well as in Canada. He urged rigid economy as the /
policy of Canada and as more important at this juncture than "
even the Tariff; dealt with the Public Debt and the alleged ar-
bitrary conduct and policy of the Government. As to Railways,
he criticized the Government for transferring its powers to a /
group of Directors, taking away from Parliament control of
Railway expenditures and refusing to Parliament information
as to the management of the National Lines: "I am prepared
to say in regard to the Railways, that I think we should give the
project its fair trial, but no undertaking, whether it is public or
private, which is carried out in that manner can receive the
fair trial which it deserves." As to fiscal matters, the issue was
between High Protection and a Revenue Tariff: "Mr. Meighen
says the Tariff needs revision. We say the same thing. The
only difference I can see is that were they to revise the Tariff /
it would be revised in the interests of combines, monopolies,
trusts and mergers. If it is left to our revision it will be revised
in the interest of the consumers and the producers." He con-
cluded with a denunciation of Coalitions and class control. The
other speeches were very brief, but those dealt with gave the
bases for the Quebec campaign so far as official Liberal policy
was concerned.
Sir Lomer Gouin's Campaign. Throughout the year
Sir Lomer Gouin was an object of interested political
discussion. His influence in Quebec was known to be
great, his reputation for caution and political wisdom
was high throughout Canada, his association with the
greater financial interests of Montreal, since leaving Provincial
politics, was well known. Only recently elected a Director of
the Bank of Montreal and the Royal Trust Co. ; elected, early in
this year, with Lord Shaughnessy, Sir John Aird, E. L. Pease,
and others, to the Canadian Advisory Board of the National City
Company; appointed, in October, President of the newly-or-
ganized Title, Bond, Guarantee and Trust Corporation of Can-
ada, Ltd. ; already a Director of the Montreal City and District
Bank and Mount Royal Assurance Co., his financial interests
were as obvious a? his political standing. During the first
months of 1921 he was in France and Spain, with a few days
spent in London ; with his return and the rumours as to an Elec-
tion, the question of his place in politics was much discussed.
At a banquet given to him late in 1920, he had intimated a per-
sonal feeling of political responsibility and interest ; at the
Lemieux banquet the appeal was officially and publicly made ;
on Oct. 20 he accepted the nomination for the Laurier-Outre-
mont division ol Montreal ; at the same time, the Montreal
Gazette (Cons.) declared that he had "the respect, the confi-
dence of all clas.ies in Quebec," that he was "solid and steady
and sane in matters political," and an avowed Protectionist,
while behind rr'm at Ottawa there would be a large Quebec
484 THE CANADIAN ANNUAL REVIEW
representation which would "enable him to command the situa-
tion."
In his nomination speech, Sir Lomer was explicit in his
treatment of the situation: "I belong to no political combina-
tion. I am and I will remain in my party for the good of my
country. And it is simply as a soldier in the Liberal army that
I will do my share in this election." As to the Tariff question,
he said that they knew his opinions : "I have expressed them
in private and in public. I have said that the question of the
tariff is not a question of party creed. I have said that I do not
see the difference between a moderate protectionist and a mod-
erate free trader, but I believe the tariff which gave fortune to
j this country and which needs no explanation, the tariff the Lib-
eral party gave in the past and will give in the future, can be de-
scribed in three words ; it is the Tariff of Laurier." This, how-
ever, was not the only question. The Railway troubles were not
created by the Laurier Government, as Mr. Meighen maintain-
ed; had immigration continued, had the World- War not come,
had the Canadian Northern been restrained, there would be no
Railway question ; in any case, the Meighen Government could
not deal with the issue. He was more pronounced in his view at
a second meeting on Oct. 31 :
The Railway question is of paramount importance now. Unless it is
settled, there will be a national tragedy. We cannot separate politics
from National Railway administration. From the Commissioners down
to the crews we see the effect of patronage. All, from President down
to the driver and brakeman, must be friends of the Government. As
long as we own railroads so long will politics play an important part in
their management. In two years the employees of Government roads
have increased from 43,000 to 55,000, and wages have increased 30 per
cent. Our roads show immense deficits while privately-owned roads over
the same territory can declare dividends. We have seen the disastrous
experience of England, America and France, and so long as we run
nationally-owned roads so long will our Debt increase. The proble.ni
must be settled, no matter who wins. If the Meighen policy continues
we will certainly have a national disaster.
He once more declared that a revenue tariff was essential;
that we could not prosper if the manufacturing establishments
were to close just when America had shut off the market for our
produce; that "we cannot forget our 600,000 industrial workers
who, with their families, constitute a quarter of our whole popu-
lation" ; that "it would be in the interests of the country to have,
as in the United States and in England, an expert Tariff Com-
mission to study our tariff needs and instruct the Government
on the requirements of the country." In another speech, on Nov.
2nd, Sir Lomer spoke in English to a large audience, and stated
that the three problems that faced the country to-day were the
Tariff, the National Debt and the Railway administration. As to
the first, we must stop discussion and restore stability to the
tariff: "The only way to create this condition is to establish a
Board of Tariff Experts as in the United States, and this will
study conditions and inform the legislators as to what is needed
to give fair protection to manufacturer and consumer."
,
ISSUES IN QUEBEC; SIR LOMER GOUIN AND THE LIBERALS 485
As to the National Debt, he spoke of its growth from $50
per capita in 1914 to $300, and even $500, if liabilities, Provincial
and Municipal, were added : "We have now an annual expendi-
ture of $600,000,000, with an annual deficit of $200,000,000. I
do not see how we can carry any more. We must know how the
Government intends to adjust our finances. It is with all these
obligations that the Government has acquired the Railways at
a cost of $2,000,000 per week. This is a problem that threatens
to turn into a tragedy." In face of the example of Canadian
Government railways which had not paid interest on their cost,
and despite the recent experiences of the United States, "the
Government has taken over 22,000 miles of road which show an
annual deficit of more than $100,000,000. Who is to blame?
Mr. Meighen says Laurier authorized the Grand Trunk Pacific
and built the Transcontinental. We are not ashamed of these,
but we answer that Laurier is not responsible for the Canadian
Northern purchase, assessing us for more than $500,000,000;
nor for $65,000,000 on account of the Intercolonial when that
section between Ste. Rosalie and Levis was double-tracked to
ruin the Grand Trunk; nor can we lay the Grand Trunk expro-
priation to Laurier with its obligations of $265,000,000."
At Rigaud, on Nov. 13, Sir Lomer dealt with Mr. Meighen's
criticism of his Railway utterances : "I have no interest in any
Railway of this country. I am not acting on behalf of any par-
ticular interest. I have never done so, and I have no intention
of starting that sort of career now." The administration of
the National Railways was adding to the Debt of the country
$100,000,000 a year, and the time had come to have a change.
It was not a question of giving them to a Company or creating
a monopoly, but it was time to put an end to a situation which
was leading the Dominion to bankruptcy and ruin. The Liberal
party would solve this problem as well as that of the Tariff. On
the 15th, in Montreal, he spoke for Major H. M. Marler, who
was running against Hon. C. C. Ballantyne, and dealt with these
matters at length. He denounced Mr. Meighen and his friends
for alleged ill-treatment of the Grand Trunk Railway: "For
ten years the adversaries of Sir Wilfrid Laurier have laboured
to undermine the credit and revenue of the Grand Trunk. After
the Civil War the American Government made big advances to
the Union Pacific, and within 50 years principal and interest
were repaid. Why not have given the same confidence to the
Grand Trunk?"
Mr. Marler — who was eventually elected — declared th&t
Government ownership was invariably found connected with in-/
efficient management, and hosts of inefficient employees to be
kept by the taxpayers. He cited the Railway deficits as an ex-
ample of this and referred to the Government Merchant Marine
which had cost nearly 100 million dollars and had depreciated
50 per cent, in value. Sir Lomer was at Three Rivers on Nov.
20, and declared the Government's defeat "an absolute cer-
486 THE CANADIAN ANNUAL REVIEW
tainty" ; he was again in Laurier-Outremont on Nov. 23, accom-
panied by Hon. W. G. Mitchell, and addressed a number of
other meetings; on Dec. 1st, supported by Hon. Athanase David,
Provincial Secretary, he again denounced the Railway policy of
Mr. Meighen, and urged drastic economy as the one constructive
essential. He referred to certain rumours as to removal of
G. T. R. headquarters from Montreal: "If you vote for the
Conservative party, you authorize the removal of all that Rail-
way administration, the head offices, the works, and, with them,
at least 50,000 of the population of the city."
As to the rest: "I want to go to Ottawa to make Quebec
better known, better respected, better loved. I want all the
sister Provinces of the Confederation to treat Quebec as nothing
more or less than their equal " In St. Antoine division, Mont-
real, Sir Lomer (Dec. 3rd) lauded Mr. Mitchell, his late col-
league, and candidate in that riding; he admitted opposition to
State ownership of railways ; he was not, however, prepared to
say, now we owned them, that we should give away the prop-
erty of the Government: "We are opposed to monopoly by
private companies as well as by Governments and if one is
dangerous the other may be more so." Mr. Mitchell stated that
he was opposed to Public ownership and operation of railways,
and always had been: "It is not possible for any Government
to operate them without politics creeping in from top to bottom.
It was a mistake in policy to take over the C.N.R. and worse
when they added the G. T. R. The Government had received an
offer by the Board of the G. T. R., through Sir Thomas White,
for a working arrangement which would have saved the country
the expense of buying the Railway, but the offer was not accept-
ed: "My remedy may be drastic, but I can see no reason why
you cannot deal with the Canadian Northern in the same way
you deal with any business problem. If it was insolvent I would
have appointed a receiver — and washed out the water in the cor-
poration." As to the Government Steamship line, he would have
done as Great Britain did and subsidized the ships as needed and
left their operation to the owners.
The Liberals and Nationalists in Quebec. During this
period Mr. Lemieux made a number of speeches — notably
at Nicolet on Sept. 25, Lachine on Oct. 9, Maisonneuve
on the llth, Ste. Cesaire on the 16th. He and other Liberal
speakers were essentially critical of the Government. Charges
of betrayal of public confidence, robbing soldiers of their votes in
a preceeding election, trying to establish divorce courts against
the earnest conviction of Quebec Catholics, driving the Do-
minion into financial bankruptcy, placing Imperialism before
Canadianism, inviting Annexation by extravagant policies, were
amongst the many things alleged against the Meighen and
Borden Governments. Conscription was frequently referred
y to and Agrarianism was defined as meaning nationalization of
wheat, high wheat prices, Free trade, and direct taxation of land
ISSUES IN QUEBEC; SIR LOMER GOUIN AND THE LIBERALS 487
values. At Lachine* Mr. Lemieux declared that the author of
the Reciprocity Treaty of 1911 was not, as was generally
thought, Sir Wilfrid Laurier. That pact was suggested to Sir
Wilfrid by the Governor-General of the time, Earl Grey, who
had discussed with President Taft the question of better com-
mercial relations between the United States and Canada, and
afterwards showed to Laurier and Fielding the chance they had
of obtaining the privileges of Reciprocity. He stated, also, that
Sir Robert Borden had offered Laurier the dominant place in a
Coalition, on condition that he would agree to Conscription, but
Sir Wilfrid had flatly refused.
At a Quebec City Liberal meeting on Nov. 11, there were
many references to Conscription and denunciation of Mr. J
Meighen and the Borden Government in that connection. C. G.
Power, the candidate, declared himself opposed to the nationali-
zation of Railways. At Sherbrooke, on the 23rd, Hon. H. S.
Beland spoke at length on the extravagance of the Government, \>
and much was made of the advances to Roumania and Greece.
Another point was as follows: "When the War ended, $100,-
000,000 was voted for the demobilization of the army, and we
were told it would all be done in one year. The second year the
Government asked for another $75,000,000 for the same purpose,
and last Session, 2^ years after war was ended, they asked
for and got another $35,000,000 — all for demobilization, when
there was not a single soldier in England, France, or Canada
that had not been demobilized." Mr. Mackenzie King also spoke
briefly, and urged an audit of the country's Assets and Liabili-
ties.
H. M. Marler, the opponent of Mr. Ballantyne in Montreal,
denounced that Minister's Naval and Marine policy at a meet-
ing on Nov. 10, and S. W. Jacobs, K.C., dealt at length with the
alleged anti-French and anti-Catholic record of Hon. J. W.
Edwards. At Farnham, Que., on Nov. 10, Hon. Mr. Lemieux de-
livered a notable tribute to Great Britain : "After studying the
magnificent history of Great Britain and the development of the
British Empire, its constitution and the regime of liberty always
preached within the walls of Westminster, I have the greatest
esteem and honour for the people of England. I have been twice
round the world, and everywhere the flag of Great Britain stood
for liberty and tolerance." His first allegiance, however, was to
Canada. As to the War, he was explicit: "From the first mo-
ment, with Sir Wilfrid, I said the duty of Canada, the duty of
every man with a heart, was to support England and France in
the struggle against Germany." Conscription was the fairest r
system, but in Canada it was not necessary; the Government
had not tried to get French-Canadians, voluntarily, and did not
want them.
The Nationalists, as such, had no part in the campaign.
Henri Bourassa told a great gathering in Montreal, on Oct. 19,
*Note— Report in Montreal Star, Oct. 10, 1921.
i
488 THE CANADIAN ANNUAL REVIEW
that his health did not permit of being a candidate, but that he
and Le Devoir would support any Independents who might stand.
All three existing political parties were, he declared, unsatis-
factory, and the Liberal and Conservative parties were de-
nounced as being jointly responsible for all the great troubles
with which the Dominion was faced at the present moment. He
made a proposal for the Railways based on the French system :
"Possession by the State of the landed property of the railway
companies and the leasing of the different Lines to the Com-
panies, on conditions which would offer sufficient attraction in
the way of security of capital and yet reserve to the State the
right of taking possession of the whole in case of war or na-
tional crisis." There were varied denunciations of the Empire.
The situation in India was described as lying between "the
partisans of Indian autonomy and the profiteers of the Imperial
domination"; Egypt and Ireland, under British rule, were com-
pared to Belgium under Germany, and to the Poles, the Alsac-
ians and other "victims of German barbarity." The following
alleged French comment upon the British at Mons was quoted:
"The English got driven back at Mons, you know, but now our
men are standing round them and they are fighting all right !"
Here and there Mr. Bourassa spoke during the Election,
but not very often; Le Devoir, however, kept him well in front
as a stinging critic of both the old parties ; to Mr. Meighen and
Sir Lomer Gouin he was most keenly opposed. On Oct. 19 he
swung away from the Independent candidate idea and proclaim-
ed the Farmers' party as, upon the whole, offering the best
policy for the electors' approval. Armand Lavergne, as Mr.
Bourassa's chief lieutenant, was a candidate in Quebec County,
and made a number of speeches attacking both parties — though
he still called himself a Liberal. He maintained vigorously his
anti-Empire policy, and at Charlesbourg (Nov. 6) said: "I am
fighting to-day, as I did in the past, for non-participation in the
wars of the Empire." The Liberals and Conservatives had call-
ed upon Canadians to fight for civilization and the freedom of
small nations, but these were "lying appeals in the face of suffer-
ing Ireland crushed under the iron heel of England." He was
in favour of Railway nationalization.
Mr. Meighen and the Government Campaign in Quebec.
Meanwhile, the Quebec campaign of the Government assumed
two aspects. The one was the Government's effort to main-
tain its candidates or Independent camouflages against the over-
whelming Liberal strength; the other was an increasing diffi-
culty in holding its own amongst the English-speaking element.
In Montreal the English press was more than lukewarm ; as the
Election developed, the failure of the Montreal Gazette, a staunch
Conservative organ, and of the Montreal Star, to support the
Government, were significant indications of strong discontent;
the financial interests were, obviously, hostile or absolutely
irresponsive; Mr. Ballantyne and others found the Railway
ISSUES IN QUEBEC; SIR LOMER GOUIN AND THE LIBERALS 489
policy of the Government a serious handicap. Amongst the
French-Canadian candidates, L. J. Gauthier, at St. Hyacinthe,
put up a vigorous fight for the Government ; Dr. L. P. Normand
gave a number of addresses and was of undoubted service to his
party, though fighting an up-hill battle in Three Rivers against
the popular Jacques Bureau. The other Quebec Ministers did
not have even a chance of election.
Mr. Meighen came to Montreal on Nov. 4, and in an able
address did his best to meet a difficult situation. In dealing with
charges that he had sacrificed Canadian autonomy and interests
at the Imperial Conference, he said: "It would be well that
matters which appertain to our relations with the world and the
Empire should be treated by Canadians as a whole nation, and
should not be made the subject of divisions. Such was the de-
sire of my heart as I strove to serve Canada at that Conference.
At that Conference this country was committed to nothing,
whatever, beyond what it has always stood committed to, nor
was there anything said or done which went a hair's breadth
beyond the pale of what I said to Parliament." He refused to
make the details subject to party debate. As to the Railway
situation, it was one of taking over the Canadian Northern or
allowing it to go into liquidation, and Sir W. Laurier had strenu-
ously opposed the latter ; had liquidation occurred the C. P. R.
would have probably acquired the Railway. As to the Grand
Trunk and G. T. P., conditions of acquisition had been forced
upon the Government, and Public Ownership, eventually, would
succeed "better than some people desired."
As to Sir Lomer Gouin's statement about the partisan ap-
pointment of Directors, he read a List of legal firms retained by
the National Railways and including Sir Lomer's own firm and
that of Mr. Premier Taschereau. In general matters he de-
clared that the Liberals were adjusting their platform to each
constituency: "Protection for fruit in British Columbia, Free
trade in the three Prairie Provinces, higher tariff on implements
of production in certain sections of Ontario, lower tariff on im-
plements of production in others, anti-conscription in Quebec,
and humbug in the Maritime Provinces." A series of speeches
in the Eastern Townships followed. In the financial and
railway situation at Montreal, there were some striking inci-
dents. C. H. Cahan, K.C., a veteran Conservative, one-time
Leader in Nova Scotia, and now a representative financier of
Montreal, in declining to oppose Mr. Fielding at Halifax, de-
clared in his letter that "later on, the financial and economic
problems, which so sorely beset us, will undoubtedly necessitate
entirely new political alignments ; thoughtful and experienced
minds of both the old political parties must break from former
party affiliations and co-operate to preserve the solvency of the
country."
The utterances of Sir Lomer Gouin, Mr. Mitchell and Mr.
Lemieux were taken in the other Provinces to mean a serious
490 THE CANADIAN ANNUAL REVIEW
movement against the National Railways ; there could be little
doubt that the more or less guarded comments of these leaders
did represent a volume of influential opinion. So much was this
realized that the Toronto Globe, on Sept. 10, Oct. 5, Oct. 18, and
other dates, had strong editorials declaring that no change in
Railway policy and ownership would be admissible ; Mr. Mac-
kenzie King, at St. John, on Oct. 15, stated that Mr. Lemieux
was speaking, in this respect, for himself ; the Toronto Star pub-
lished, on Dec. 2nd and other dates, a large number of telegrams
from Liberal candidates in Ontario declaring themselves em-
phatically in favour of continued public ownership and operation
of the National Railways, with the pledge that, if elected, they
would resist any move to surrender control or sell out to any
V . private interest. On Nov. 26 C. G. MacNeil, Secretary of the
I G. W. V. A., wired to all the Party leaders, Mr. Beatty of the
I C. P. R., and the President of the Bank of Montreal, a charge of
conspiracy, under Sir Lomer Gouin's leadership, to destroy the
National ownership of railways ; it evoked vigorous denials, ex-
cept in the case of the Prime Minister who, in his reply (Nov.
27), declared that there was "ample evidence that Sir Lomer
Gouin and leading Quebec Liberals are determined on transfer
of, or disintegration of, the present National Railway System."
Following this incident, the Montreal Star became actively
hostile to the Government, and, in the last days of the campaign,
had a series of editorials and articles claiming that plans were
under way by the Board operating Government-owned Railways
to remove from Montreal a large number of Grand Trunk of-
ficials— if not the whole System headquarters. On Dec. 2nd it
declared that private proofs were available and would be sub-
mitted confidentially to the Prime Minister. Mr. Meighen re-
sponded (Dec. 4) with a demand for publication of any such
alleged documents. On Dec. 9 The Star published a letter from
Sir J. W. Flavelle, dated the 6th, and declaring that: "No one
has at any time suggested that I should seek to move any ac-
tivity of the Grand Trunk from Montreal to Toronto. I have
not suggested such a course to myself or to others. There is
not even a colour of accuracy in the statements made upon this
subject in your several issues or in the deductions drawn from
them by various political speakers." There followed a review
of the inevitable conditions accompanying re-organization of
several great Railway staffs and the retirements, changes, and
re-arrangements which must ensue. In comparison with the
difficulties of this task, he added, the question of "whether the
ultimate head office is in Toronto or Montreal or elsewhere, is
a matter of secondary importance."
The chief document referred to by The Star, as afterwards
appeared, was a letter from Sir Joseph to the President of the
G. T. R., which dealt with the coming retirement of some of the
older officials of the Railway. Meantime, on Dec. 9, Mr.
Meighen had wired that he would be in Montreal on the 10th,
INCIDENTS AND MINOR ISSUES OF THE CAMPAIGN
491
and requested production of the proofs involved; eventually,
with Sir Joseph Flavelle and Hon. J. A. Stewart, he met Lord
Atholstan and A. R. Carman, Chief Editor, at the office of Presi-
dent Kelley, of the G. T. R., and read the correspondence which,
finally, was published in The Star of the 14th. It turned upon
Sir Joseph Flavelle's policy and intention to re-organize the
higher Staff of the Grand Trunk. Mr. Meighen at once claimed
that there was no adequate proof of The Star's charges, and in
this he was supported by The Gazette. On Dec. 5 the Premier
issued a special Message to Quebec, through La Presse, one of
the Liberal organs, and dealing with the general situation :
In the course of the campaign that is now terminating, the Govern-
ment has informed the nation as to its policies and the acts of its Ad-
ministration. We have simply made an appeal to reason. Our policy is,
I believe, clear: We desire that Canada may remain a self-governing
country within the Empire; we desire equality and justice for all classes,
all Provinces, all races, all beliefs ; we desire the unity of Canada, the
development of strong and virile Canadianism, which shall oppose the
tendency to separation in groups, to disunion, to domination by a single
class ; in short, we desire the maintenance of our traditional fiscal
policy, the continuation of an economic doctrine which has made the
prosperity of Quebec and the rest of Canada, x x x If the Govern-
ment is defeated on Dec. 6, who will succeed it? None of the parties
which now fight against it can govern alone. A combination of groups
hostile one to another, united only by the thirst for power and preparing
an era of uncertainty and difficulty, will be the sole result of a Minis-
terial defeat.
Incidents of
the Cam-
paign: The
Munition,
Ford and
Riordon
Questions.
Incidents on the Government side of a contest
which was, perhaps, the longest in Canadian his-
tory, included the declaration of Thomas Findley,
President of the Massey-Harris Co., Ltd. (Sept. 7)
that Free trade in Implements meant the inevitable
shifting of the manufacture of Western Canadian
implements from Ontario and Quebec to the West-
ern Middle States ; the retirement of Rt. Hon. C. J.
Doherty in St. Ann's, Montreal, after 13 years' representation,
with a message from Geneva (Sept. 30), expressing his great
regret ; an advertisement, which was lavishly published in the
Canadian press, describing Canada's difficulties, duties, responsi-
bilities and dangers, and declaring that "Meighen will lead us
Through"; the publication of a daily Bulletin, issued for some
time from the headquarters of the National Liberal and Con-
servative Party at Ottawa, which reviewed political issues and
advocated Conservative principles ; the published analysis of
Mr. Crerar's platform prepared and issued by Hon. J. A. Calder
(Regina Leader, Oct. 22), which declared that his Manifesto was
a "clever compilation of high-sounding words and phrases, ser-
monettes from the mount, visionary imaginings and academic
theorizing that will never fool the nation as a whole."
The Hon. R. B. Bennett replied to the Progressive and Lib-
eral charge as to Government and Tariff promotion of mergers
and combines, by the allegation, at Newmarket, on Nov. 11, that
492 THE CANADIAN ANNUAL REVIEW
Mr. Crerar was President of the biggest business in Canada—
excepting Banks and Railways, that his Companies were "mid-
dlemen living upon the toil of the farmer and producing nothing
but dividends," and "that the Liberal leader was in the hands of
certain "Big Interests" of the United States, notably the Beth-
lehem Steel, Bethlehem Shipbuilding Co., the Northwest Sugar
Co., the General Electric Co., and others. The Premier,* in re-
plying to the question of the Social Service Council of Canada
as to his attitude toward legalized race-track gambling, stated
that : "It is my opinion that public opinion, and any Parliament
elected as representative of that opinion, will insist on a fair
trial of existing restrictions before they will accept further
radical legislation, x x x Parliaments, having regard to
recent experiences, are somewhat distrustful of the fidelity
with which the public generally, who insist on advanced legis-
lation of this nature, will afterward support those who make
themselves the authors."
The Government literature of this year included an appeal
for the support of the Ukrainians (Ruthenians) of the West on
the ground that in the League of Nations proceedings Mr.
Doherty, for Canada, had supported the position of Eastern
Galicia as against Poland, which considered it, historically, to
be a part of that country, and permitted an effort to float a Galli-
cian loan of $1,000,000 amongst the Ruthenians of Canada. Sir
George Foster and Sir Thomas White took little part in the cam-
paign— the former speaking at Halifax on Nov. 11 and the latter
at Gananoque on the same date, at Woodstock on the 24th, and
at Montreal on Dec. 3rd. It may be added that the Government
party, in addition to varied references to the Protectionism of
Huebec Liberals, claimed that F. F. Pardee, Hon. G. P. Graham,
. N. Gordon, W. D. Euler, W. G. Raymond and D. D. Mackenzie
were outspoken along that line, and that in Nova Scotia Mr.
Fielding, H. J. Logan, K.C., and E. M. Macdonald stood for a
duty on coal in the interests of Nova Scotia mining.
Liberal incidents of the period included the nomination of
Hon. W. R. Motherwell, so long Minister of Agriculture in the
Saskatchewan Government, and founder of the Provincial Grain
Growers' Association, as the party candidate in Regina, with
the support of Mr. Premier Martin and of Hon. C. A. Dunning,
a member of the Martin Government, and, also, a leader in the
Farmers' movement ; the support of the Liberal cause by the
Foster Government in New Brunswick and by those of Mr.
Murray in Nova Scotia and Mr. Bell in P. E. Island, together
with that of Mr. Taschereau in Quebec and Mr. Oliver in British
Columbia ; the refusal of Hon. William Pugsley, Lieut. -Governor
of New Brunswick, and for long Minister of Public Works in
Sir W. Laurier's Government, to accept the Liberal nomination
in St. John ; the declaration by Alex. Smith, K.C., an Ottawa Lib-
eral and formerly party organizer (Oct. 27) that the Initiative,
*Note. — Toronto Globe, Nov. 11, 1921.
INCIDENTS AND MINOR ISSUES OF THE CAMPAIGN 493
Referendum, and Recall of the Progressive platform was an
unconstitutional and illegal restriction upon Parliamentary pro-
cedure, and based upon an American system of government
quite different in form and practice to that of Canada.
Other matters were the candidacy of Dr. Michael Clark as
a Liberal in the West, following upon his break with Mr. Crerar,
and his continued denunciation of the Progressives as a class
movement and, therefore, as a danger to the country — notably
in an address at Yorkton, on Nov. 1st; the choice of A. B. Hud-
son, K.C., lately a member of the Liberal Government in Mani-
toba, as the party candidate in Winnipeg, with the general as-
sumption that in case of Liberal success he would be a member
of the new Government ; the claim made by J. H. Sinclair, ex-
M.P., of New Glasgow, that, according to the Auditor-General's
Report for 1919 vouchers for pay and other expenses of the
C. E. F., totalling $121,640,016, had been received very late and
in immense quantities, but had never been examined, and that,
he believed, there were fraudulent paymasters in the case with
much money lost; the vigorous effort made by Ma j. -Gen. Robert
Rennie, C.B., C.M.G., D.S.O., M.V.O., to defeat T. L. Church in North
Toronto; the attack by Hon. W. M. Martin at Regina (Dec 1st)
upon the "Recall" policy of the Progressives as unconstitutional, /
his declaration that the Liberal and Progressive tariff planks *
were much the same, his general and severe criticism of the
Progressive party — as working along class lines — under the
leadership of H. W. Wood and J. J. Morrison in particular; the
speeches of H. H. Dewart, K.C., Liberal leader in Ontario, on
behalf of the Federal party, and his denunciations of the Drury
Government and Farmers' party.
Progressive incidents included the vigorous support given
by Hon. E. C. Drury, Premier of Ontario, to Mr. Crerar and the
Progressive cause, with speeches at Brampton, on Oct. 17, at
Picton on Nov. 8, and at Cobourg in the evening, at Oshawa, on
the 10th, and at Toronto on the llth, at Milton and Barrie on
the 15th, at Owen Sound on Nov. 21 and at Ottawa on the 29th,
at Simcoe on Dec. 2nd ; the help, also, given by Hon. Manning
Doherty and Hon. W. E. Raney of the same Government, by
speeches at different Ontario points ; the issue of an interesting
volume in the midst of the campaign by William Irvine, Pro-^
gressive candidate in Calgary, dealing with The Farmer in Politics*
and emphasizing the H. W. Wood view of the problem ; the
platform of the candidate in West Calgary, J. T. Shaw, which ,
included Proportional Representation, total abolition of the /
Senate, and the declaration that a Government should not be
required to resign upon one of its measures being defeated un-
less there was a direct vote of want of confidence ; the can-
didacy of R. W. E. Burnaby in North York, despite alleged
pressure to retire and make the Liberal leader's chance better,
with a local controversy as to this which developed later.
There was, also, the claim by W. H. Casselman, M.L.A., in
the Farmers' Sun of Nov. 12 — based upon an elaborate table of ""
494 THE CANADIAN ANNUAL REVIEW
statistics — that "Agriculture represents more than Yz the capital
wealth of the country, that it furnishes more than J^ the total
exports, and that less than y$ of the products of the farm is mar-
ketted in the home market while more than 2/$ is marketted in
the open markets of the world and that manufacturing represents
about Y(> the capital wealth of the country, that it furnishes less
than Yz the exports, while 85 per cent, of its output is marketted
in the protected home market, chiefly among the farmers."
Other incidents included the refusal (Sept. 9) of the Progressive
j party in Saskatchewan, after long negotiations, to combine in
» any organized form with the Liberals, in order to fight the
Meighen Government; the support given by Hon. George
Langley, in Saskatchewan, to the Progressives along lines based
upon (1) a radical re-adjustment of fiscal policy, (2) an entire
elimination of wasteful expenditures, (3) the maintenance of
public ownership of railways, removal of political influence from
their management and adjustment of freight rates with (4) a
system of Government grain marketting; the reply of the Grain
Growers' Guide (Oct. 12) to the charge that only 16,652 farmers
paid any Income tax, and then only $611,735, in 1920-21, with the
statement that "the fiscal policy of the country takes so much
out of the farmer, indirectly, that he has nothing left where-
with to pay directly."
There was an urgent call by J. B. Musselman, Secretary of
J the Saskatchewan Grain Growers, through a special circular, to
support Progressive candidates in that Province ; the continued
Ontario claim to farmers that the decrease of agricultural popu-
lation was caused by the Tariff and illustrated by the decline,
between 1911 and 1921, of 13 10 per cent, in Dufferin, 1422 per
cent, in Southeast Grey, 14-12 per cent, in North Huron, 1070
per cent, in East Lambton, and 11-11 per cent, in Wellington
North; the effort made by E. A. Partridge of Sintaluta, in Oc-
tober, to get the three Party leaders to agree to the immediate
re-establishment of the Wheat Board by Order-in-Council and
so give "the earliest possible relief to the Western farmers";
] the demand of the Farmers' Sun (Nov. 19) that the Senate be
-abolished as "a block on the wheels of progress" ; the statement
by the Winnipeg Free Press — which during the Elections gave
an indirect support to the Progressives — that the Enlistments
in the War, according to population, stood greatly to the credit
of the West and the agricultural class — 14-5 per cent, in Mani-
toba, 1205 per cent, in Alberta, 7-6 per cent, in Saskatchewan,
and 13 1 per cent, in British Columbia, compared with 97 per
cent, in Ontario, 409 per cent, in Quebec, 7-3 per cent, in New
Brunswick, 57 per cent, in Nova Scotia and P. E. Island. The
Farmers' Sun declared (Nov. 30) on the eve of the Election,
that if the New National Policy won : "The protective tariff
will be lowered, the manufacturers will be forced to reduce
prices, and the cost of living will go down ; all claims for Pro-
tection will be heard publicly before a Parliamentary Commit-
INCIDENTS AND MINOR ISSUES OF THE CAMPAIGN 495
tee; all protected industries will be obliged to publish annually
a statement of their earnings ; the duties on British imports will
be lowered; immediate steps will be taken to open Reciprocity
negotiations with the U. S. Government for the free exchange
of natural products."
Mr. Mackenzie King and the Munitions Question. This was
a minor issue interjected into the contest by the Opposition
leader, but it caused considerable discussion. Writing to the
Prime Minister on Oct. 21, Hon. Mackenzie King, in an open
letter, stated that in passing, recently, through Levis he had
visited a ship of the Government Merchantile Marine which was
docked at the wharf: "To my surprise I found that the ship's
cargo was composed, apparently exclusively, of munitions of
war, in the nature of high explosive shells. From 30 to 40 sol-
diers in uniform were engaged in unloading the vessel. On the
landing and embankment, over an area comprising several hun-
dred square yards, boxes upon boxes, filled, apparently, with
these high explosive shells, were piled one upon the other to an
average height of about four feet." There were many more
boxes upon a siding: "On enquiry, I was told that the muni-
tions had come to Canada from England; that they were being
distributed to ordnance stores throughout Canada, not to ocean
ports such as Esquimalt and Halifax only, but to supply depots
and stores in all the Provinces — including the city of Quebec
itself." Mr. King added that he was also informed that this
was the fifth vessel of the Government fleet to come from Eng-
land laden with high explosives of the character described, and
whose cargoes had been unloaded at, and distributed from, the
port of Levis, during a recent period. As Parliament was not
sitting, he submitted the following questions to the Prime Min-
ister :
1. Am I right in believing that it is at the instance of the Govern-
ment of Canada that the C. G. M. Marine has been employed to bring,
to Canada the munitions of war being unloaded at Levis this week, and
that they are being bought and paid for in England out of the moneys
contributed through taxation by the people of Canada?
2. Is the British Government in any way a party to the shipment
of these munitions, and does the shipment owe its origin directly or in-
directly to action taken by the Conference of Premiers recently attended
by you in London?
3. To what points in Canada or elsewhere are the said munitions
being distributed, and to what uses is it intended they shall be put?
4. Is it true that other ship-loads of munitions have been brought
to Canada from England or abroad during the present year; and, if so,
in what quantities ?
5. Finally, if these munitions are for the Government of Canada, on
what authority of Parliament and under what appropriation have these
or any other munitions been purchased outside of Canada during the
present year?
Mr. King quoted from the Public Accounts and Militia Re-
port to show that in 1919-20 $4,563,176 had been expended on
ammunition "from various sources" and charged to "Demobili-
496 THE CANADIAN ANNUAL REVIEW
zation appropriations"; he wanted to know what other similar
charges might have been made against other large sums voted
under that heading. Mr. Guthrie, Minister of Militia, was at
once interviewed, and told the press, on Oct. 22, that: "No muni-
tions have been purchased since the War, except a few spare
parts to put in shape such material as we have in Canada. At
the end of the War the British Government handed over to
Canada a tremendous amount of equipment to replace the
equipment which Canada had taken over to England and France
during the War. It has been coming to Canada from time to
time since. The House of Commons was informed last Session
and the Session before that, that the British Government was
sending this equipment." The Toronto Globe commented (Oct.
24) upon these "amazing revelations," and asked: "What
answer can Sir Robert Borden make when the representatives
of the United States ask why high explosives by the shipload
are coming to Canada three years after the close of the Great
War, and at a time when a representative of the Canadian people
is asking the nations to disarm?" Mr. Meighen's reply, to a
letter published before he received it, was written from Brace-
bridge, on Oct. 25, and gave a series of categorical answers to
the queries presented. A brief summary of the essential points
follows :
1. No war material of any kind has been purchased since the Armis-
tice. On the outbreak of war all available war material was shipped to
England and handed over to the War Office, Canada receiving a credit
of war material equivalent to the amount turned in, upon which she
could draw for the use of her forces as required, x x x After the
Armistice, by agreement with the War Office, practically all Canadian-
owned war material overseas was turned into British army ordnance
depots ; Canada being given a credit of war material free of cost upon
such depots, and the right to draw her own proportion to meet require-
ments of her Active Militia. In the Spring of 1920, Canada's require-
ments were forwarded to the War Office, and since that time, as cargo
space became available on ships of the Government's Marine, shipments
which were Canada's own property, were made to Canada.
2. The meeting of the Prime Ministers in June last had nothing
whatever to do with the arrangements or the shipments. The war ma-
terial is consigned where accommodation can be made available in the
various Military Districts in Canada, and is to be entirely used for the
training of the Artillery.
3. Several partial cargoes were received early in the present year,
and the bulk of these is being used for annual training. Since Parlia-
ment prorogued in June last, 2,355 tons of war material have arrived in
Canada.
4. The amounts disclosed in the Public Accounts of 1919-1920 as
having been paid out of Demobilization appropriation for war material
were paid for such material purchased during the War, and for some of
which accounts were not received till after the Armistice.
Mr. King referred, frequently, to this subject in his cam-
paign speeches in order to point a charge of Militarism against
the Government. As he put it at Orono, on Oct. 26, so it was
said at other meetings: "Talk about disarmament! The
Government has adopted the very reverse. They are bringing
INCIDENTS AND MINOR ISSUES OF THE CAMPAIGN 497
in war materials to an extent we have never known before, and
to an extent greater than it is possible to use. Wherever avail-
able accommodation can be found they are putting these high
explosives. Every bit of them comes out of the credit which is
Overseas in England, and that credit was made up of money
loaned by the people of Canada for the purpose of winning the
War." From Sutton, on Oct. 27, he wrote Mr. Guthrie asking
for the following particulars: "(1) The extent of Canadian
credits with the War Office ; (2) the extent and nature of war
material which has been drawn by the Canadian Department of
Militia; (3) the nature and extent of the credit upon which
Canada is still entitled to draw ; (4) particulars as to aeroplanes
and other war equipment which have been received from Great
Britain as gifts since the Armistice."
The Minister's reply was made public on Nov. 1st. He re-
peated the Prime Minister's explanation as to no purchases of
ammunition since the Armistice ; stated that small arms am-
munition had since then been made at the Quebec and Lindsay
Arsenals ; pointed out that the "credit" referred to in this con-
nection was a munitions credit and not a financial one ; referred
to the final settlement in July, 1920, when the British Govern-
ment gave a credit of $3,000,000 for the surplus war material be-
longing to Canada after all the supplies required were deducted.
The facts as to Aeroplanes, etc., were given in detail. At Orono,
on the 27th, Mr. King asked why, in view of these statements,
were large sums of money voted in 1920 and 1921 for the manu-
facture of munitions at Lindsay and Quebec, and why was
nothing said at that time about a credit on which Canada could
draw for stores or munitions Overseas? He contended that:
"Enough has been disclosed to show that Parliament and the
people have been deliberately deceived by the Government with
respect to vast expenditures of public monies on ammunition
and war-like stores."
The Ford Motor Car and the Tariff. At Winchester, on
Nov. 18, Hon. W. E. Raney, K.C., Attorney-General of Ontario,
gave an address, confined almost entirely to this subject, and
which — owing to its wide circulation and the fact of being util-
ized and endorsed, as a contention, by both Progressives and
Liberals — had a certain obvious influence in the campaign. After
dealing briefly with the National Debt, the Railway deficits and
unemployment, Mr. Raney turned to the Tariff as "not the only
issue, but an important one." He then passed from gen-
eralities and gave a concrete case with alleged Tariff cause and
effect: "Take for instance, Automobiles. The tariff on auto-
mobiles of all grades is 35 per cent. In other words, the On-,
tario man who buys a Detroit car that is listed f.o.b. in that
city at the equivalent of $1,000 Canadian currency, pays a cus-
toms duty of $350 which goes into the revenues of Canada.
But 35 per cent, customs duty is a strong inducement to the
Detroit manufacturer to establish a branch in Canada. When
17
498 THE CANADIAN ANNUAL REVIEW
that is done the tariff ceases to be for revenue and becomes a
tariff for protection and the U. S. manufacturer, with a branch
in Canada, is able to add to his profit on his Canadian sales a
sum approaching or perhaps quite equalling the Canadian duty."
The contention was illustrated* as follows :
1. I find that the present price of the Ford sedan car made at Ford
City, Ontario, is $1,014.50 plus freight from Ford City. I find that the
American Ford sedan car can be had for $1,014.50 plus freight from
Detroit City— a distance of three or four miles more; omitting the Cana-
dian customs duty, the Ontario purchaser could buy the Detroit-made
car for $263 less than the car made in Canada.
2. I refer to the Canadian Ford five-passenger touring car. The
price of this car without starter, made at Ford City, Ontario, is $578.98.
But the Michigan man can buy the corresponding car at Henry Ford's
Detroit factory across the river for $355 plus a 5 per cent. U. S. war tax.
And, but for the Canadian customs duty of 35 per cent, you could buy
that car for $404 in Canadian money, including the Dominion of Canada
sales tax of 4 per cent. In other words, the Canadian Ford touring car
costs the Ontario purchaser $175 more than the corresponding Detroit
car would cost him but for the Canadian customs duty.
Other illustrations were given making the same point — that
the Canadian maker of these cars, with costs much the same as
in Detroit, added the duty, or most of it, to the price of his
cars without having to pay it himself and without any benefit
to the country's revenue. Mr. Raney proceeded to show the
alleged business profits of the Ford Motor Co. of Canada since
beginning operations at Ford, Ont., in 1904. Exclusive of tract-
ors, he stated the output at 329,001 with a present product of
40,000 to 50,000 a year; the original investment in 1904 was
$125,000 and, the speaker asserted, the only one, outside of
profits, in the business. It had returned in 1905-1921 cash divi-
dends of $7,900,000 and $6,875,000 stock dividends to the share-
holders; the profits of 1920 were stated at $5,696,061, and the
dividends $1,050,000, and for 1921 (year of July 31) the figures
were, respectively, $2,368,407 and $2,100,000.
Mr. Raney then painted this picture: "The dividend paid
in 1915 was on the basis of 880 per cent, on the capital invest-
ment; that paid in 1919 was 1,960 per cent, on the capital in-
vestment; that paid last year was 840 per cent, on the capital
investment, and that declared for 1921 was 1,680 per cent, on the
capital investment." He then dealt with the capital which, of
course, now included $6,875,000 of bonus stock added to the
original $125,000, and stated that there had been a considerable
number of sales of this stock during the past two years at prices
ranging from $300 to $380 per share; that on 87 transactions
during that time the average price was $326; that on this basis
the actual value of the present Assets of the Company would be
$22,820,000. As a matter of fact, the annual Statement was
quoted as showing Assets of nearly $19,000,000— $3,447,951 in
cash, $3,378,115 in Government bonds, and the balance in land,
buildings and plant. Based upon these statements, Mr. Raney
*Note. — Verbatim report in Toronto Star of Nov. 19, 1921.
INCIDENTS AND MINOR ISSUES OF THE CAMPAIGN 499
proceeded to denounce, with vigour, the Government and the
Tariff as helping Big business at the expense of the people ; as
to the future there would be "a revenue tariff with incidental
protection."
The annual dividend of the Ford Company of Canada, re-
ferred to above, was declared at a meeting on June 7, with a 15
per cent, distribution — similar to 1920; at the same time a new
price schedule cut $65 from the selling price of touring cars and
roadsters, and $110 from the price of coupes and sedans. Fol-
lowing the speech, it was officially stated at Ford, Ont., that
Henry Ford* owned only 18 per cent, in the stock of the Cana-
dian Company; that there were 1,200 stockholders, mostly
Canadians, and that the Company had the exclusive manufactur-
ing and selling rights for Ford cars in Canada, so that the Tariff
was really no protection; that the Company employed 4,155 per-
sons, and in 10 years had paid $26,915,469 in wages and $9,000,-
000 in taxes. It was added that one-third of the business was
export.
A. E. Fripp, K.C., (Cons.) in Ottawa, on Nov. 25, undertook
to reply to Mr. Raney, and stated the above facts as to the Ford
business. He declared that there were 55,000 Ford cars made
in Canada, while 1,000,000 were made in Detroit, and that this
was one of the reasons why Canadians had to pay more for the
car than Americans ; in addition, the customs duty on raw ma-
terials and semi-finished parts, imported by the Company last
year, had amounted to $2,525,000, and was another reason why
the Canadian price was higher than the American; in 10 years
the Company had paid many millions to the Dominion treasury
in duties. Under reduced duties Canadians would, he
thought, buy American cars and ruin their Automobile indus-
try. It, also, was contended that much of the difference in price
between Ford and Detroit was accounted for by items of ex-
change, as well as by the duty on finished parts imported, and
by special and more expensive features in the Canadian car.
The Riordon Taxes and Government Action. Under ordin-
ary circumstances this issue would have had no serious import-
ance ; as part of a combined effort by two well organized polit-
ical parties to prove the Government and its fiscal policy to be
behind what were called the "Big interests," it had, undoubtedly,
some weight. The Riordons, as a Company, had been much be-
fore the public ; their huge merger and re-organization of 1920
was a spectacular incident ; the pulp and paper profits and losses
of recent years were well known, as were the Company's fin-
ancial troubles of 1921. Hence the interest taken in a telegram
sent by H. M. Ellard, Progressive candidate in Wright County,
Quebec, to the Prime Minister on Nov. 8: "I have declared to
the people of Wright that it is my intention, if elected, to press
for the establishment of a Royal Commission to investigate into
and report upon the affairs of the Riordon Company. In this
*Note. — Toronto Globe despatch Nov. 29, 1921.
500 THE CANADIAN ANNUAL REVIEW
connection I am informed that the Government accepted the
promissory notes of this Corporation for Income and Profits
taxes due since 1916, the total of which, with interest to date,
approximates $800,000, and is deferred for payment until April,
1922. Is this a fact? If it is true cannot the farmers and other
taxpayers of Canada give their promissory notes for Income and
Profits taxes?"
Sir Henry Drayton, Minister of Finance, at once issued a
Memorandum stating that in dealing with the problem of get-
ting its taxes from a concern in such a position as the Riordons
the question for determination was "a Sheriff's sale on the one
hand, or nursing the account on the other, so that the business
of the Company might be carried on." He pointed out that the
Government had not waived its rights in any way, and that the
claim for taxes had priority over the claims of pulp producers,
jobbers and bankers, and carried interest at the rate of 7 per
cent. ; the principle, he contended, was exactly the same as that
applied to the farmers of the Northwest, who, through crop
failure, haji been unable to meet their Seed obligations. He
quoted British and American precedents as to their tax accounts
being leniently dealt with under certain circumstances. In
Canada, he added : "Many small firms have been, and some are
still, in the same position as the Riordon Company is to-day. As
a result of careful and patient management these firms have
been kept in business and the great bulk of the taxes collected."
The total arrears of such taxation collected during the current
year, were, approximately, $11,569,203. The Riordon situation,
he pointed out, involved great interests, many employees and
creditors, and large mill operations — with the latter kept going
through the Government's policy.
The two Opposition parties made much of this matter. The
— Toronto Globe and Farmers' Sun and many other journals drew at-
tention to the fact that Charles Riordon was President of the
Mail Printing Co. of Toronto and Carl Riordon Vice-President ;
the Grain Growers' Guide (Nov. 23) claimed that during 1916-1920
the Riordon Company had paid $2,002,500 in dividends and had
not paid any taxes except for the year 1919; the Toronto Globe of
Nov. 11 asserted that: "The Riordon Company was abundantly
able to pay its taxes in the years 1916, 1917 and 1918, but that,
instead of doing so, its funds were diverted to the purchase of
an American company yielding prodigious profits." The Liberal
leader, Mr. King, declared at Port Arthur (Nov. 10) that the
Riordon Company was not entitled to favoured treatment simply
because it was an important concern which had fallen upon fin-
ancial difficulties : "If this course is correct then any individual
who happens to be financially handicapped, or claims to be so,
has an equal right to give the Finance Minister his promissory
note for the amount of his Income tax or Profits tax and, cer-
tainly, the law does not admit of any such course." The Mont-
real Gazette (Cons.), which at this juncture was very cool toward
I
INCIDENTS AND MINOR ISSUES OF THE CAMPAIGN 501
the Government, took the ground that there had been dilatori-
ness in collection of taxes, and that the Company was remiss in
not paying the taxes when able to pay dividends.
On the other hand, Sir Thomas White wrote, on Nov. 15, to
the Toronto Globe declaring that : "If there is any basis for the
charge of negligence which you make, the responsibility, until
August, 1919, would be clearly mine (as Minister of Finance),
and not that of Sir Henry Drayton. The Business Profits Act
was enacted in 1916. It was retroactive to the beginning of the
War. It was a most difficult Act to administer because the
amount of taxation payable depended upon ascertainment of
true, not nominal or share, capital and of net earnings of firms
and companies affected. In order to safeguard the revenue of
the Dominion, careful audit had to be made by accountants of
books and documents in order to test the accuracy of statements
submitted. Frequently valuation of extensive properties and in-
ventories had to be made. The entire Dominion had to be cov-
ered. Thousands of firms and joint stock companies were affect-
ed— financial, industrial, mining, railway, shipping and others.
xxx The Commissioner of Taxation informed me that
it would take three or four years to create a proper organiza-
tion for the collection of this and Income taxation. It took the
United States much longer, and Britain has been improving her
system for generations."
The result had been a great success, with the collection of
310 millions from Income taxation and 162 millions from Busi-
ness Profits. Sir Thomas added: "When I left office there
was a very large number of assessments remaining to be made
in respect of the preceding period. After taking office, Sir Henry
Drayton set himself resolutely to the task of completing assess-
ments in respect of past years." The inference from his state-
ment was that the Riordon taxes were amongst these. As to
action in the case : "What would be gained by issuing a writ
against the Company? Only long drawn-out litigation would
have resulted. He (Sir Henry) has done what business
men do in such a situation, and what other creditors of the
Riordon Company — creditors without his preferred position —
are doing to-day." As to the rest : "Neither Mr. Charles Rior-
don nor Mr. Carl Riordon, nor anyone else on behalf of them or
the Company, ever saw me respecting the assessment or asked
for any delay or other privilege. The taxation of this Company,
like all others, was dealt with by the Department officers in the
usual course."
Mr. Premier Meighen referred to the matter upon several
occasions. At Port Arthur (Nov. 20) he stated that this Com- t
pany were said, also, to owe $556,000 to the Quebec Govern- /
ment: "I am not, as a result, saying the Quebec Government *
is in league with 'Big business.' I wouldn't stand on a platform
and talk such rubbish." The Federal Government would not
lose a cent because it had accepted this note, which constituted
502 THE CANADIAN ANNUAL REVIEW
a first claim against very large assets. At Chesley (Nov. 29) he
stated that in 1914-1915 the Government had advanced $14,000,-
000 to farmers to buy Seed grain. To this day four millions of
this amount remained unpaid, drawing interest at 5 and 6 per
cent. Did this look as if the Government had one yardstick for
the big interests and another for the farmers ? On Nov. 16,
speaking in Toronto, Sir Henry Drayton said that the Riordon's
entire indebtedness to the Government was about $500,000, and
this was an absolutely first charge against assets and resources
worth $48,000,000. He added that "the Quebec Government had
similarly recognized the situation and was carrying $556,000
worth of Riordon accounts — very largely for stumpage that
should have been paid at once." Sir Henry stated in Toronto,
on Nov. 30, that all but $14,000,000 of the National taxes for the
year had been collected, and the Ottawa Journal of the same date
quoted figures to show that out of Business Profits' assessed
taxes in 1917 and 1918 only $149,631 were now unpaid, and out
of similar taxes for 1919 there was about $1,050,000 unpaid.
Out of 3,000,000 voters in Canada there were
Women in at this time more than 1,250,000 women entitled to
the Elec- cast thejr ballots. A considerable proportion would
Labour not anc* ^ not vote — notably m Quebec, where
Issues of participation in politics by women did not receive
the Day. Church approval ; also in other parts of Canada,
where indifference to the issue was much greater
amongst women than men. As the Elections became assured
there was a more active and interested feeling visible amongst
women in the Liberal ranks than in the Government party, and
the Ontario Women's Liberal Association, with Mrs. Harry
Carpenter as President, did energetic work in preparation and
in propaganda.
In the West the Women Grain Growers had, for years, been
under organization, and they were better prepared for electoral
support to the Farmers' movement than were any other section
of women in Canada ; in Ontario, to a lesser degree, the Women's
Institutes (though non-political) helped to line up the feminine
vote for one party or another. The first political body of this
kind to be recognized by the Government party was the
Women's National Liberal and Conservative Association of
Montreal, with Mrs. Henry Joseph as President, and branches
all over the city — though only organized in January of this year.
There were, in all the cities and centres, Business Women's
Clubs, Women's Press Associations, W. C. T. U. and Y. M. C. A.
branches, I.O.D.E. Chapters ; many of these and other organiza-
tions felt or showed some interest, great or small, in the Elec-
tions, and were appealed to by the various candidates.
On Oct. 21 the Ontario W. C. T. U. sent telegrams to the
Party leaders asking them to state their position in regard to
Prohibition and the liquor traffic. Mrs, Gordon Wright, the
WOMEN IN THE ELECTIONS; LABOUR ISSUES OF THE DAY 503
Dominion President, stated at London that it was simply in-
tended to secure statements which then would be left to the
consideration and decision of individual members. Mr. Meighen
and Mr. Crerar could not be reached at the moment, but Mr.
King replied by quoting the Liberal Convention Resolution of
1919. The Social Service Council and the Dominion Alliance, in
whose work Women's organizations were so greatly interested,
addressed similar letters to the Leaders. The first body wanted
statements as to race-course gambling- Mr. Meighen's reply
is quoted in the preceding Section ; Mr. King stated that his
party had expressed no opinion on the subject; Mr. Crerar said
that he was, personally, opposed to race-track gambling. J. H.
Carson, President of the Dominion Alliance, wrote, on Nov. 3rd,
asking for a statement as to supplementary Prohibition legis-
lation. Mr. Meighen said, in reply, that the Government's past
and present policy was one of "progressive measures" along
the line of strengthening Provincial legislation and recognition
of Provincial autonomy; Mr. King would not go beyond the
terms of 'the 1919 Resolution of his Party. Meantime, various
Councils of the Women's National Council of Canada — a
Federation of nearly all the Women's Societies in the Dominion
— had issued to candidates a statement of policy and principles
as propounded in 1920:
1. Political Standards. (a) Equal moral standards in public and
private life; (b) abolition of patronage; (c) publication of amounts
subscribed to party funds ; (d) open nomination of political candidates ;
(e) political equality for men and women ; (f) that those who shall here-
after be added to the electorate shall have a speaking knowledge of
English or French ; (g) the naturalization of women independently of
the nationality of husband.
2. Social Standards. . (a) That necessary legislation be enacted
to permit of uniform marriage laws; (b) that there be equality of cause
for divorce courts — and that there be no financial barrier; (c) prohibi-
tion of the sale of intoxicants ; (d) raising the age of consent to 18 years.
3. Industrial Standards. (a) Equal pay for work of equal value
in quantity and quality; (b) the basis of employment to be physical and
mental fitness without regard to sex; (c) the principle of co-operation
between employer and employed; (d) the principle of collective bargain-
ing as defined by the Federal Department of Labour.
The Parties, in their literature, made pointed appeals to the ,
Women voters. One Government leaflet dealt with Protection /
and the dangers of American competition as follows: "During
the War so much money poured into the United States that they
made their factories so big that they are 12 years ahead of their
needs. To-day, in hundreds of their factories, men and women
are working only three days a week. Hundreds of thousands
are out of employment. Is your vote going to help give two
extra days' work each week to the factory and shop hands in
the United States and other countries? Are you going to slam
the factory door for your husband, your son, your daughter,
here at home?" The Premier, on Nov. 24, issued a Message to
504 THE CANADIAN ANNUAL REVIEW
the Women of Canada which declared that: "For the first time in
our history, woman's voice is heard with the same authority as
man's. Because of her numbers the voice of woman predomi-
nates. On the conscience of our women now rests the chief re-
sponsibility for determining what is to be done with Canada."
Mr. Meighen then gave his appeal the personal and patriotic
touch: "I make this appeal. Think of the past, think of the
hours of trial, think of the peril unspeakable in whose shadow
we lived for years. Is it not the best, the wisest thing to stand
by those who through all those years, themselves, stood true
and strong?" As to the future he was explicit: "We cannot
have prosperity, we cannot get on and get up in the world with-
out strong and stable government. You cannot maintain re-
sponsible government at all unless parties appeal, as parties,
upon defined and understandable policies upon which all their
candidates stand." A sense of responsibility was urged: "The
women of our country rose to their rights by their patience,
their exertions, their sacrifice in war"; they should now take
advantage of the privilege and vote for a policy of co'urage, of
hopefulness, of fidelity to Canada. Though not in this docu-
ment, women were frequently reminded that they owed the
suffrage to Sir R. Borden's Government.
The Liberals issued a leaflet showing that they had long
fought to obtain the franchise for women ; that it had been first
granted by Liberal Governments in British Columbia, Alberta,
and Saskatchewan ; that in the Commons Hon. William Pugsley
had consistently urged it and Liberals advocated it. Another
leaflet dealt with the Protective tariff issue as a means of in-
creasing household expenses and the cost of food and family
necessities. The Progressives, in their farmers' papers, had
^ continuous and more or less clever appeals to women voters
spread over the whole year ; the women's pages in the Farmers*
Sun or Winnipeg Guide and similar organs were attuned to per-
sistent education along lines of Agrarian politics. There were
not many women candidates. Miss Agnes MacPhail, in South-
east Grey, ran as a Progressive ; Mrs. John Dick, in Winnipeg
Centre, as a Socialist ; Mrs. Rose Henderson, a Radical-Socialist,
ran in the Labour interests in Montreal against Hon. C. C. Bal-
lantyne; Mrs. Hector Prenter, also a Socialist and Labour can-
didate, ran in Toronto West. Neither Liberals nor Conserva-
tives had a woman candidate, though women speakers were
utilized by all the parties. Lady Laurier was invited to run in
Ottawa by the Liberals, but declined.
Labour Issues and Mr. Murdock's Campaign. There were
J many issues raised by Labour parties and candidates, but there
was no organized unity of thought, policy or action. James
Murdock, Vice-President of the Brotherhood of Railway Train-
men, and one-time member of the Board of Commerce, was,
perhaps, the most conspicuous Labour figure in the contest. 'He
attacked the Government without gloves, and especially upon
WOMEN IN THE ELECTIONS: LABOUR ISSUES OF THE
its relations to the Board of Commerce ; he became a Liberal-
Labour candidate and was supported by and spoke at various
meetings with the Liberal leader. To the Toronto Globe of Sept.
26, Mr. Murdock gave his reasons for supporting the Liberal
party in this contest : "It is my conviction that Canada requires /
a Government that will be representative of all of its classes, of
all its great racial and religious beliefs, and of all its many and
varied interests." Canada could not get what it needed in a
Farmer or Labour Government, or in a combination of both, be-
cause it would mean class government; nor in the Meighen ^/
Government because "by inheritance, by environment, by the
travail of years in power, and by inclination, our present Gov-
ernment is essentially a class Government."
He concluded with the declaration that: "I have for years
been very close to the upward and onward trend of the Labour
movement in this country, and am convinced that the interests
of the labourer, the common man (and by this I mean every man
or woman who works for wages) can be better protected under
a Liberal Government in Canada than under any other existing
or proposed party. A sane, stable Government, by no one class,
for no one class, but by all classes, is Canada's need." The Lib-
eral party claimed in its campaign leaflets to have done much for
Labour. It had established the Labour Gazette, suppressed the
sweating system in 1897, established a Fair Wage scale, passed /
the Conciliation Act of 1900 and utilized the valuable services of »
Mr. Mackenzie King for many years in the Department of
Labour, negotiated the Japanese Immigration arrangement,
legislated for protection of workmen against accidents, striven
for lower duties and cheaper living costs.
Mr. Murdock made a number of speeches, and his chief sub-
ject was the Board of Commerce. He was nominated for South
Toronto on Oct. 27, and in his speech passed almost at once to
the Board, stated his reasons for taking a place on the Board,
reviewed its early proceedings and expressed his growing con-
viction that something was wrong: "I went there to do my
duty. I proposed to see that certain monoplies and certain com-
bines— you had them all in 1919 and 1920, and you've got them
yet — were curbed. But it was not to be." He asserted, and did
it over and over again throughout the campaign, that various
members of the Government disliked the Board and its opera-
tions ; that certain interests were to be protected or not attack-
ed as the case might be ; that he was urged from time to time to
let this or that matter alone. At Aurora (Oct. 28) he spoke
with Mr. King, and stated that : "It was never intended the Board
of Commerce should function or that the special interests should
be prevented from exploiting the people of Canada. It was only
and simply a pretence."
He accompanied the Liberal leader to many of his Ontario
meetings, and at Sarnia, on Nov. 2nd, declared that "gigantic
plundering of the people went on, but we were shown that we,
506 THE CANADIAN ANNUAL REVIEW
on the Board of Commerce, were expected to draw our salaries
of $8,000 a year and do nothing. That's why I quit." His
speeches were, in fact, largely an elaboration, in stronger langu-
age, of his resignation letter on June 24, 1920, which declared
that "the majority of the Cabinet are not and have never been
in sympathy with the provisions and intent of the Board of Com-
merce Act." At Clinton, on Nov. 18, Mr. Murdock described the
following Ministers, by name, as opponents of the Board in its
operations: Sir George Foster, Hon. C. J. Doherty, Hon. C. C.
Ballantyne, Hon. J. A. Calder and Mr. Premier Meighen. Others
were afterwards named. At Hamilton, on the 20th, he instanced
the Textile enquiry as an example of inability to get anywhere,
and declared that he had been blocked in trying to investigate
the "Cement trust and Canning combine." These charges were
the backbone of his speeches and, no doubt, they had their in-
fluence on the result. Behind his campaign, also, was the well-
known work of Mr. King as Deputy-Minister and then as Min-
ister of Labour.
The Government, at first, made no special appeal to Labour.
The Department under Senator Robertson had not been and was
not now much criticised; there was little said against it even in
the heat of this contest, and Mr. Meighen, apparently, was con-
tent to let it go at that except for the general charges of Mr.
Murdock. At Smith's Falls, on Nov. 9, the Minister of Labour
dealt at length with this subject. He traced the origin of the
Board of Commerce, in succession to the Canada Food Board and
Cost of Living Commissioner, and as created for the purpose of
controlling profits, reducing the cost of living and of minimizing
increases which seemed inevitable : "The Board, however, utterly
failed to function successfully, and for the very good reason that
instead of carrying on the work formerly performed by the Food
Board and the Commissioner (W. F. O'Connor), together with
the enlarged duties and responsibilities which the new Act gave
to it, the Board of Commerce branched out into new lines of
undertaking, which resulted, as was inevitable, in disaster. New
tactics and policies were adopted, and the attention of the
Board directed, not to the control of the profits of those who
were handling goods, but rather to direct attack upon the pro-
ducers of these goods."
Mr. Robertson declared that the operations of the Board
were reflected in the fluctuations in the cost of living in Canada
during the period of its existence as compared with the five
years preceding the establishment of the Board : "I believe that
the Board of Commerce, as it was administered, was largely re-
sponsible for the extremely high prices and the abnormal in-
creases in the cost of commodities that occurred between July,
1919, and July, 1920." Mr. Murdock was described as particu-
larly hostile to the Textile industry. Passing from this subject,
the Minister attacked Mr. Mackenzie King, at length, in respect
to the Grand Trunk strike of 1910 and the Colorado troubles of
WOMEN IN THE ELECTIONS; LABOUR ISSUES OF THE DAY 507
1913 in the United States. As to the latter, he read correspond-
ence between J. D. Rockefeller, Jr., and Mr. King, written in
1914, regarding proposed arrangements for the Canadian to take
up Rockefeller Foundation and Conciliation work.*
Following this, there came a change of policy, and adver-
tisements appeared in the Canadian press which appealed to the /
workers to support Mr. Meighen for the Labour services of his N
Government — Conferences at Ottawa bringing Capital and
Labour together; Labour representation on various War Boards
and at the Peace Conference ; passing of the Employment Co-
ordination, the Technical Education and the Vocational Train-
ing Acts ; instituting retiring allowances and pensions for aged
and infirm Government employees.
Meantime, W. F. O'Connor, K.C., the first Cost of Living
Commissioner and a colleague with Mr. Murdock on the Board
of Commerce, took up the cudgels for the Government and spoke
at various Ontario points in answer to the Murdock charges. At
Arnprior, on Nov. 17, Mr. O'Connor said, as to the alleged Gov-
ernment control of the Board, that: "I have to give this con-
tention explicit denial and say that on no occasion whatever did
any member of the Government interfere with, or attempt, such
control." Had such a thing occurred Mr. O'Connor declared
that he would have been first to denounce the action publicly
and strongly. He stated that he had records of the whole life of
the Board, and that there was no such interference as Mr. Mur-
dock charged : "I was present on the occasion when Mr. Mur-
dock states that he was 'lectured' by the Minister of Justice. To
tell the honest truth, it was the other way." Mr. O'Connor
spoke at St. Catharines, St. Thomas, Ridgetown, Stratford,
Brantford, Port Hope, Hamilton, Oshawa, Toronto and other
points.
Senator Robertson, at North Bay, on Nov. 18, declared
that: "Mr. Murdock was the only one of the 24 Labour men
appointed by the Government for special work during the War
who did not make a success of his work." Mr. Meighen dealt
with the matter at Owen Sound, on Nov. 28, as follows : "The
whole Government together, no matter what they tried to do,
had no more power to interfere with that Board than the
humblest man in front of me ; no more than it had to interfere
with a Judge sitting in his Court. The Board was made a tri-
bunal and given the amplest powers we had the right to give it.
We would not interfere with the Commissioners. They had
their functions under the law. If Mr. Murdock could not per-
form them, then he was not the man for the post."
The Progressive and Labour parties in Ontario had close y
relations during the Elections. On Sept. 12 the U. F. O., through
J. J. Morrison, notified James Simpson of the Ontario Section, —
Canadian Labour Party, that W. C. Good, Paris, and M. H.
Staples, Toronto, would be members of the Executive Commit-
*Note. — The correspondence was published in full in tne Ottawa Journal of Nov. 10th.
508 THE CANADIAN ANNUAL REVIEW
tee of the latter organization. Wherever possible co-operation
/ was arranged, not only in Ontario but elsewhere, to defeat the
candidates of the older parties. The Winnipeg Convention of
the Canadian Labour Party (Aug. 28) passed a Resolution in
favour of the fullest co-operation between all its Provincial
Sections and the Farmers' Provincial organizations, and on Oct.
— 14, the Industrial Banner, the organ of the Labour Party and
edited by James Simpson, published an Election appeal to Cana-
dians with the following clauses :
1. Calling upon its members and sympathizers to stand solidly be-
hind the Farmer-Labour candidates.
2. Declaring that under Liberal and Conservative Governments
. Canada had been made "a stamping ground of plunderers so absolutely
J ignorant that they imagined Labour could pay the interest on any
amount of paper they chose to print."
3. Stating that Sir H. Drayton had, by paralyzing taxation, "made
crooks of honest men, closed up the factories, shortened the crop
acreage, depopulated the rural districts, and filled the cities with idle
workmen."
4. Describing the Meighen Government as "desperately striving to
hide its rotten record behind a smoke screen of tariff twaddle, revolu-
tionary bugaboos and exploiting Imperialism."
5. Denouncing ,Mr. Meighen as "a finished type of bloodless legalism
and bureaucracy" and a "legal apologist for plunder and privilege."
, 6. Declaring that Mr. Mackenzie King was a leader of "pussy-foot-
v ing Liberalism" and a sympathizer and servant of the financial magnates
"who have this nation by the throat."
7. Stating that "the I. L. P. stands for a humane and equitable dis-
tribution of the products of human toil, and believes that with our re-
sources, the recurring conditions of misery, unemployment and want
are wholly artificial and directly chargeable to our system of irrespons-
ible and arbitrary financial control."
This latter presentation of Socialism was the text of a
number of speeches by Mr. Simpson, who was Labour candidate
in Parkdale, and by supporters like the Rev. Dr. S. G. Bland;
well-known protagonists of the policy like W. A. Pritchard,
candidate in Victoria, B.C., or John Harrington, Socialist can-
didate in Burrard, B.C., Rev. A. E. Smith in Brandon, J. S.
Woodsworth in Winnipeg, and other candidates throughout
the West, followed upon even broader lines. Speaking in To-
ronto, on Nov. 20, Mr. Simpson stated that "not a Labour party
in the country has failed to accept the Socialist plank for the
collective ownership of the means of life. This was not thought
of two years ago. It is true that the Farmers have not reached
this point. We have got to give them time. A great many
^farmers are nothing but wage slaves."* There were 45 Labour
candidates throughout Canada, many of them avowed Socialists,
and most of them standing upon the platform of the Canadian
Labour Party, which was as follows :
1. State Insurance against unemployment — chargeable to Industry.
J 2. Public Ownership and Democratic Control of Public Utilities.
3. Electoral Reform. Proportional Representation. Names instead
of Election Deposit. Extension of Voting Facilities.
*Note. — Toronto Globe report Nov. 21, 1921.
RESULT OF THE ELECTIONS: DEFEAT OF THE GOVERNMENT 509
4. Old Age Pensions — Health, Disability, Insurance.
5. Abolition of Non-elective Legislative Bodies.
6. International Disarmament.
7. Direct Legislation — Initiative, Referendum, Recall.
8. Enactment of Recommendations of Washington Labour Confer-
ence, and especially the Eight-hour Day.
9. Repeal of Amendment to Immigration Act providing for Deporta-
tion of British Subjects.
10. Removal of Taxation on the Necessities of life ; Taxation of Land
values ; Abolition of Fiscal Legislation that leads to Class privileges.
11. Nationalization of the Banking System.
12. Capital levy for reduction of War Debt.
On Dec. 6 the Government was defeated by
Result of the two to one ; every Province except British Columbia
went against Mr. Meighen ; Quebec, for the first
time in history, sent a solid Liberal bloc to Ottawa,
Government, as did Nova Scotia and P. E. Island; the three
Western Provinces gave the Progressives 37 to 5
Liberals and no Government supporters. As published later, a
total of 3,121,844 votes was cast out of 3,726,722 on the voters'
list, or 65 per cent. ; they compared with 1,885,329 votes cast in
1917 out of 2,093,799 on the electoral lists. About one million
women probably voted ; another interesting and unusual fact
was the absence of all acclamations on Nomination day. The
figures of Party voting were not officially given, but the Cana-
dian Press, Limited, issued estimates which were accepted as
approximately correct, and they showed 1,296,723 Liberal votes,
971,502 Government or Conservative votes, 769,387 Progressive
votes, and 84,232 Independent votes ; the same calculation made
each Liberal elected represent 11,083 voters, each Progressive
11,672, and each Conservative 18,400. Practically, the Govern-
ment vote was a Conservative one, as there was no reason to
doubt that the Unionist Liberals had, by this time, almost en-
tirely returned to the party fold. A curious feature of the Elec-
tion was that, while the Conservatives had a much larger popu-
lar vote than the Progressives, the latter had many more mem-
bers elected. The vote by Provinces was as follows :
No.
Mem-
bers
Province Lib.
Ontario 21
Quebec 65
Nova Scotia
New Brunswick....
P. E. Island
Manitoba
British Columbia..
Alberta
Saskatchewan
Yukon
Total
117
No.
No.
No.
No.
Mem-
No.
Mem-
No.
Mem-
No.
Votes
bers
Votes
bers
Votes
bers
Votes
Lib.
Con.s
Cons.
Prog.
Prog.
Ind.
Ind.
351,717
37
445,150
24
329,502
9,003
558,056
163,743
31,790
39,477
136,064
87,988
35,741
76,653
"5
61,172
i
17,447
23,950
19,504
8,990
29,525
46,486
12
83,350
i
13 361
46,249
"7
74,226
3
21,786
12J39
27,404
35,181
11
104,295
"i
6,024
46,447
37,345
15
136,486
3,610
658
i
707
18
1,296,723 . 50 971,502 66
769,387
84,232
There' were 192 candidates who lost their deposits through
not polling one-half of the total vote given for the successful
candidates — and of this number 70 were Conservatives, 47 Pro-
510 THE CANADIAN ANNUAL REVIEW
gressives, 43 Independents, and 32 Liberals. In Ontario the
Government, or Conservative party, polled only 445,000 votes
to 680,000 given to the Liberals and Progressives ; showing, as
did other Provinces, the practical effect of the two Opposition
parties fighting the Government more than each other. Only 65
per cent, of the total vote was polled, though in Great Britain
the average was about 75 per cent. ; the votes polled did not
represent the number of members returned, at all closely, ex-
cept in British Columbia and New Brunswick. The Liberals
secured 53 per cent, of the votes recorded in Nova Scotia, but
captured all the 16 seats, and the 87,000 Tories, as well as the
35,000 Progressives, were left without representation; in Que-
bec the 163,000 Conservative votes did not elect one member ; in
Manitoba the Progressives polled less than half the vote cast
but captured 12 out of the 15 seats, and in Alberta, with 60 per
cent, of the total vote, they captured 11 out of the 12 seats.
Ontario was the centre of the industrial part of the Fiscal fight,
and its cities largely supported the Government — 15 out of 24
voting Conservative. Ottawa, London, Brantford, Chatham,
Kitchener, Peterborough and Windsor, Guelph and Niagara Falls
went Liberal. Toronto showed its usual Tory colours with a
total Conservative majority in its 9 seats of 23,028.
The personal losses of the Government were severe. Mr.
Meighen was beaten by a Progressive in Portage la Prairie, his
home riding, by over 600 majority; the other Leaders were more
fortunate, with Mr. Crerar elected by 4,200 majority in Mar-
quette and the Liberal leader in West York by 1,100 majority
— greatly to the popular surprise outside of that riding. Of the
Ministers, Mr. McCurdy and Mr. Spinney were defeated in Nova
Scotia and all four French-Canadian members of the Cabinet
were beaten in their Province by large majorities, together with
Mr. Ballantyne in Montreal ; Dr. Edwards lost his seat in Fron-
tenac, Hon. R. B. Bennett in Calgary, and Mr. Wilson in Saska-
toon. With the clean sweep of the Liberals in Quebec went the
election of Sir Lomer Gouin by a large majority, while Hon.
H. S. Beland, Hon. Jacques Bureau, Hon. W. G. Mitchell, Hon.
R. Lemieux and Ernest Lapointe polled heavy votes in their
respective ridings. Hon. Frank Oliver, the veteran Liberal
leader in the West, was defeated by a Progressive in Edmonton,
as was Hon. Duncan Marshall in Calgary ; F. F. Pardee in West
Lambton and Dr. Michael Clark in Mackenzie were two other
defeated Liberal leaders. Notable Liberal successes were A. B.
Hudson in Winnipeg, W. R. Motherwell in Regina, A. K.
Maclean in Halifax, A. B. Copp in Westmorland, Lucien
Cannon in Quebec, S. W. Jacobs, J. C. Walsh and Fernand Rin-
fret in Montreal, and W. G. Raymond in Brantford — the latter
defeating W. F. Cockshutt, the determined protagonist of closer
Imperial unity and organized Protection. Amongst the other
notable Conservatives of preceding Parliaments who went down
in the battle were J. E. Armstrong, Colonel J. A. Currie, Hon.
William Smith, Hon. Robert Rogers, Colonel C. W. Peck, v.c.
RESULT OF THE ELECTIONS: DEFEAT OF THE GOVERNMENT 51 1
There were not many soldiers in the field, and of these the
majority were defeated. Colonel Peck in Skeena, B.C., and
Sergt. W. L. Rayfield v.c., in one of the Torontos, were beaten,
as were Col. J. A. Currie in Simcoe, Brig.-Gen. Victor W. Odium,
C.B., C.M.G., D.S.O., in Vancouver, Brig.-Gen. H. M. Dyer, D.S.O.,
M.C., in Marquette, Maj.-Gen. Robert Rennie in North Toronto,
Major J. E. Streight, M.C., in West York, Major G. W. Andrews,
D.S.O., in Winnipeg, Lieut. -Col. James Arthurs in Parry Sound
and D. Loughnan in Ottawa. Brig.-Gen. J. A. Clark, C.M.G.,
D.S.O., was elected in Vancouver, Major T. A. Vien and Major
C. G. Power, M.C., in Quebec Province, Brig.-Gen. A. E. Ross,
C.B., C.M.G., in Kingston. All the women candidates were defeat-
ed except Miss Agnes MacPhail, the first woman member of the
Dominion Parliament, who was returned in Southeast Grey by
2,598 majority.
Organized Labour, or its fraternal associate, Socialism,
elected two members — J. S. Woodsworth in Winnipeg by a
large vote and William Irvine in Calgary East ; Hamilton, which
sent two Labour members to the Ontario Legislature, did not
elect one to Ottawa. There were various causes and reasons
given for this general failure, with the Winnipeg Free Press ^
(Dec. 8) stating the following view: "Labour during the years
since the Election of 1917 has been losing its coherence not only
as a political but also as an individual factor in the community.
Labour history in the past four years is one of schism, break-
up and destructive rivalry ; the tendency has been towards dis-
unity, and disunity of a sort that left the moderate element in
a depressed condition, while the radical element was aggresive-
ly vocal for policies which made only a narrow class appeal. ^
An interesting fact was the absence in Ontario of newspaper
support for the Progressives, who carried 24 seats, with the
Ottawa Citizen, Forest Free Press and Bracebridge Gazette as
their chief journalistic support apart from the vigorous work
of the Farmers' Sun; in the West the Calgary Albcrtan did good
service for this party with, of course, the Winnipeg Grain
Growers' Guide in the front of the battle. The following are the
official returns of the Election :
ONTARIO
Constituency
Algoma East
Algoma West
Brant
Opposition 1
Candidates
...J. G. Carruthers •
J. E. Wright :
...H. S. Hamilton :
T. E. Farquhar '.
...W. C. Good :
Brantford
Bruce North
Bruce South
Robt. Aitken : ]
....W. G. Raymond '.
A. W. Hurt :
....R. E. Stacey :
James Malcolm
T W Findley
Carleton
R. E. Truax :
....W. L. Gourlay '.
Bower Henry ]
Member
Elected
J. G. Carruthers.
Poll- Government Can-
tics didate
,ib G. B. Nicholson
>rog....
....Lib T. E. Simpson T. E. Simpson
Prog.
..Prog....W. H. Reid W. C. Good
...Lib
Lib. W. F. Cockshutt W. G. Raymond...
Prog.-
Lab
Prog. Hugh Clark James Malcolm
Lib.
Prog. John Purvis J. W. Findley
Lib.
Lib W. F. Garland W. F. Garland 1 ,395
Prog; ..E. H. Good Ind.-Cons.
Majority
813
714 '
159
1,987
474
913
512
THE CANADIAN ANNUAL REVIEW
Constituency
Dufferin
Dundas
Durham
Elgin East
Opposition
Candidates
.R. J. Woods
.Preston Elliot
.T. A. V. Reid
W. T. R. Preston...
.S. S. McDermand..
C. W. Colter
.A. E. Hookway
W Tolmie
Poli- Government Can-
tics didate
..Prog.... John Best
Prog O. D. Casselman
Member
Elected Maji
...R. J. Woods
...Preston Elliott
>rity
297
233
1,170
68
354
7,195
513
300
223
378
1,933
203
2,598
717
1,615
1,496
1,952
1,394
1,171
1,186
44
3,882
171
995
757
2,635
2,038
129
1,875
1,756
796
1,539
134
4,297
754
776
147
179
6,258
5,278
160
879
5,218
72
,.
,,
V*
Prog F W Bowen ....
..F. W. Bowen
...Lib.
..Prog....J. L. Stansell
..Lib.
..Prog....H. C. McKillop
..Lib.
..Lib H. J. Neale
i..Lib E. S. Scratch
..Prog....
..Prog.. ..Hon. R. J. Manion...
...J. L. StanselL
...H. C. McKillop
...W. C. Kennedy
...Hon. G. P. Graham
...Hon. R. J. Manion
W S Reed
Elgin West
Essex North
Essex South
Fort William —
Rainy River
Frontenac
Glengarry — Stor-
mont
Grenville
Grey North
Grey S. E
.W. C. Kennedy
Hon. G. P. Grahan
T. J. Willan
C D Garver
.W. S. Reed
J. W. Kennedy
J. E. Chevrier
.G. A. Payne
P. A. Mclntosh
.T. J. Rutherford....
W. P. Telford
.Miss A. C. MacPha
..Prog.... Hon. J. W. Edwards
Prog C L Hervey
J W Kennedy
..Lib.
...Prog. A. C. Casselman
..Lib.
...Prog.- M. R. Duncan
Lab.
..Lib.
UProg....R. J. Ball
..Lib.
..Prog.... Mark C. Senn
..Lib.
..Lib R. K. Anderson
Prog
. A. C Casselman
....M. R. Duncan
...Miss A. C. MacPhail....
....Mark C. Senn
....R. K. Anderson
Hon. S. C. Mewburn.
....T. J. Stewart
....T. H. Thompson
E G Porter
Haldimand
Halton
Walter Hastie
.S. A. Beck
D. Z. Gibson
.W. F. W. Fisher
Hamilton East
Hamilton West....
Hastings, E
Hastings, W
Huron, North
Huron South
Kent
J F Ford
.E. J. Etherington...
C G Booker
...Farm- Hon. S. C. Mewburn
Lab.
Ind
T. Newlands
.T. J. O'Heir
W Ainslie
...Lib.
..P.Lab T. J. Stewart
Lib
James Walsh
J. A. Caskey
.A. D. Mclntosh
J. W. King
W. H. Frasier
.Wm. Black
T. G. McMillan
.A. B. McCoig
D. R. McDairmid.
J. M. Campbell
B W Fansher
..Lib T. H. Thompson
...Ind.
Prog E G Porter
...Prog.... George Spotton
...Lib.
...Prog....J. J. Merner
...Lib.
...Lib W. A. Hammond
...Prog.
Lib ..A E Ross
...J. W. King
William Black
A B McCoig
Kingston
Lambton
A. E. Ross
...Prog...J. E. Armstrong
...Prog....R. V. LeSueur
...Lib.
...Prog....Hon. J. A. Stewart...
...Ind.
Lib H A Stewart .
....B. W. Fansher
....R. V. LeSueur
....Hon. J. A. Stewart
H A. Stewart
Lambton West....
Lanark
.R. J. White
F. F. Pardee
R M Anderson
Leeds „...
Lennox and
Addington
Lincoln .. .
W. G. Ferguson
A W Mallory
G. F. Warren
..E. J. Sexsmith
..E. J. Lovelace
A. A. Craise
..C. R. Somerville...
A. Mould
...Prog.
...Prog.... A. B. Carscallen
...Lab J. D. Chaplin
...Prog.
...Lib J. F. White
...Lab.
E. J. Sexsmith
J. D. Chaplin
J. F. White
A. L Hodgins
London
Middlesex East...
Middlesex West..
Muskoka
Nipissing..
..A. L. Hodgins
D. C. Ross
.J. D. F. Drummon
D. C. Ross
..W. J. Hammell
Prog S F Glass
...Lib.
d.Prog....G. A. Elliot
....J. D. F. Drummond
...Lib.
...Prog... .Peter McGibbon
Lib C R Harrison
W. J. Hammell
E. A. Lapierre
J. A. Wallace
Norfolk
Northumberland
Ontario, N
Ontario, S
Ottawa
Oxford, N
Oxford, S
Parkdale
Parry Sound
J. B. Levert
.J. A. Wallace
C. W. Kerr
F. J. Slade
..R. H. Halbert
..F. M. Chipman....
L. 0. Clifford
..H. B. McGiverin..
E. R. E. Chevrier.
D. Loughnan
E. Bourque
...D. J. Sinclair
J. H. Lillico
..M. Dean
M. L. Haley
...W. Douglas
James Simpson
...W. R. Mason
A. W. Partridge....
....Prog.
....Prog. William Sutton
....Lib M. E. Maybee
....Prog.
....Prog....N. D. McKinnon
....Prog.... Hon. Wm. Smith
....Lib.
....Lib A. E. Fripp
....Lib N. Champagne
....Prog.
....Prog.
....Lib E. W. Nesbitt
....Prog.
Lib D. Sutherland
M. E. Maybee
R H Halbert
L. O. Clifford
H. B. McGiverin
E. R. E. Chevrier
D. J. Sinclair
D Sutherland
....Prog.
....Lib D. Spence
...Brag. Lab.
....Lib James Arthurs
....Prog.
D. Spence
James Arthurs
RESULT OF THE ELECTIONS: DEFEAT OF THE GOVERNMENT 513
Constituency
Peel
Perth, N
Perth, S
Peterborough,
East
Peterborough,
West
Port Arthur and
Opposition Poli- Government Can- Member
Candidates tics didate Elected Maj
..W. J. Lowe Lib Samuel Charters Samuel Charters
H. J. W. Taylor Prog.
..I. P. Rankin Lib H. B. Morphy J. P. Rankin
ority
1,160
756
261
351
2,158
54
897
1,109
457
1,408
2,233
2,064
809
1,751
94
862
1,408
3,960
581
2,007
203
2,472
800
4,830
1,264
131
129
6,538
1,055
2,353
861
855
970
10,695
1,875
4,086
2,295
4,537
1,605
4,002
9,619
W. A. Amos Prog.
Wm Forrester Lib M Steele. W Forrester
Robert Berry Prog.
G. A. Brethen Prog...J. A. Sexsmith G. A. Brethen .
.J. A. Dewart Lib
..G. N. Gordon Xib J. H. Burnham G. N. Gordon. .
A. J. McComber Lib F. H. Keefer D. Kennedy
D Kennedy Prog
Prescott
Prince
Edward
Renfrew, N
Renfrew, S
Russell
..A. Sabourin Lib.
E. Proulx Ind-Lab.
Joseph Binette Prog ... J. Binette
H. H. Horsey Lib John Hubbs John Hubbs .
..J. R. Anderson Prog.
..M. McKay Lib I. D. Cotnam M. McKay
A. Collins Prog.
T. A Low . Lib J H Findlay T A Low
R. G. Wilson Prog.
M. J. Maloney Ind
Hon CharlesMurphyLib Hon Charles Murphy
Simcoe, E
Simcoe, N
M. Rathwell Prog.
. Manley Chew. .. Lib R Raikes Mauley Chew
T F Swindle Prog
..T. E. Ross Prog ..J. A. Currie T E Ross
Simcoe, S
Timiskaming
Toronto :
Centre
East
W. J. Holden Ind .-Lib.
..C. B. Jeffs Prog....W. A. Boys W. A. Boys
..D. McEachren.. .Lib . A J. Kennedy A McDonald
A McDonald BUM: -* <^jj.
D. Bertrand Ind..
..N. C. McEachren Lib Hon. Edmund BristoLHon. Edmund Bristol
J W Bruce Lab E B Ryckman ;.-;.' E B Ryckman
North
South
West
Thos. Foster Ind.-Cons.
W L Ray field Ind
Elizabeth B. Kiely...Lib.
..Robert Rennie Lib T. L. Church T. L. Church
..James Murdock Lib Charles Sheard Charles Sheard.
..A. T. Hunter Lib H C Hocken " H C. Hocken
Victoria
Waterloo, N
Waterloo, S
Welland
Harriet D. Prenter...Lab.
..J. J. Thurston Prog....T. H. Stinson V...J. J. Thurston
..W. D. Euler Lib J. E. Hett.^.j.,.r.,i.J..:....W. D. Euler
..Wm. Elliott Prog....F. S. Scott Wm. Elliott
W M German Lib E E Fraser W M German
Wellington :
North
J. H. Staley Prog.
J Pritchard Prog W A Clarke J Pritchard
South
Wentworth
York East
York North
York South
York West
Argenteuil..
..Samuel Carter Lib
James Singer Lab Hon. Hugh Guthrie Hon. Hugh Guthrie
..W. T. Evans. . Lib G C Wilson G C Wilson
C. F. T. Woodley Prog.
..A. G. Ross Lib J. H. Harris... J. H. Harris
H.Kirwin Lab
..Hon. W. L. Mackenzie
King Lib J. A. M. Armstrong Hon. W. L. Mackenzie
R. W. E. Burnaby .Prog King
...A. MacGregor Lib W. F. Maclean W. F. Maclean
R. H. Palmer Lab.
...J. E. L. Streight Lib Hon. Sir H. L. Drayton Hon. Sir H.L. Dray ton
J. A. Cameron Prog.
QUEBEC
P R McGibbon Lib T Christie P R McGibbon
Bagot
J. E. Arnold Prog
...J. E. Marcile Lib J. A. Dupuis J. E. Marcile
L. H. Marcotte Ind.
Hon H S Be"land Lib E J I ambert Hon H S Be"land
Beauce....
Beauharnois
Bellechasse..;
Berthier
Bonaventure
Brome
Chambly-
Vercheres
Champlain
...L. J. Papineau Lib Hon. R. Monty L. J. Papineau
...C. A. Fournier Lib E Turgeon C. A Fournier
J. C. C6te Prog
..Theodore Gervais Lib. ...J. A. Barrette T. Gervais
...Hon. Charles MarcilLib T. R. Busteed Hon. Charles Marcil
...A. R. McMaster Lib J. Boulay A. R. McMaster
J. Archambault Lib A. Guertin
J. Archambault
...A. L. Desaulniers Lib J. H. Desroches A. L. Desaulniers
A. Trudel Proe.
514
THE CANADIAN ANNUAL REVIEW
Constituency
Charlevoix-
Montmorency.,
Chateauguay-
Huntingdon ....
Chicoutimi-
Saguenay
Cornpton
Dorchester
Drummond and
Arthabaska
Gaspe....v
George-Etienne-
Cartier
Hochelaga
Hull
Jacques-Cartier...
Joliette
Kamouraska
Labelle
Opposition
Candidates
Poli- Government Can-
tics didate
P. F. Casgrain Lib Hon. L. de G. Belley.
J. A. Robb Lib
.P. D. Me Arthur Prog. Joseph Begin
E. Savard Lib J. Girard
.S. Lapointe Ind
A B Hunt Lib F. R. Cromwell
.Lucien Cannon Lib P. Valliere
INK. Laflamme Lib W. Laliberte"
T. A. Nadeau Ind
W. Blanchard Prog.
.Hon. R. Lemieux Lib J. E. Sirois
Member
Elected
..P. F. Casgrain
J. A. Robb
Majority
4,825
1,854
.E. Savard 14,699
.A. B. Hunt
.Lucien Cannon.
i:
Laprairie et
Napierville....
L'Assomption-
Montcalm
Laurier-
Outremont....
Laval-Two
Mountains
vS. W. Jacobs
M. Buhay
J. O. Cartier
L. O Maille
E. C St.-Pere
. E. Fontaine
Lafortune
.D. A. Lafortune....
J. A. Descarries
J. J. Denis
P. Bonin
.C. A. Stein
.H. A. Fortier
J Langlais
J. Lachance
M. A. M^nard
....Lib H. A. Cholette...
....Lab.
....Ind.
....Ind.
J. R. L. Ayotte.
....Lib
....Prog....
....Lib J. B. H. Gohier.
....Ind.-Lib.
....Lib J. L. Laporte
...Lib J. H. Caron
...Lib
....Ind.
...Prog.
...Ind.
J. N. K. Laflamme.
.Hon. R. Lemieux
.S. W. Jacobs
..E. C. St.-Pere
..J. E. Fontaine
..D. A. Lafortune
..J. J. Denis
..C. A. Stein
..H. A. Fortier
Levis
L'Islet
Lotbiniere
Maisonneuve....
Maskinonge1
Matane
Megantic
Missisquoi
Montmagny
Nicolet
Pontiac
Portneuf
Quebec Co
Quebec East
Quebec South...
Quebec West
Richelieu
Richmond and
Wolfe
Rimouski ,
St. Ann
St. Antoine
St. Denis
St. Hyacinthe-
Rouville
St. James
St. Tean-et-
Iberville
St. Lawrence-
St. George
..Roch Lanct6t
P. A. Seguin
..Louis Thouin
L. H. Vironneau
Sir Lomer Gouin
..A. Mathieu
J. A. C. Ethier
..A. The"oret
J. A. Bibeau
..J. B. Bourassa
..J. F. Fafard
..Thomas A. Vien
H. Lafleur
..C. Robitaille
Z. Tardif
..E. Desrochers
..F. J. Pelletier
..L. T. Pacaud
..W. F. Kay
..A. M. Dechene
T. Coulombe
..A. Trahan
F. Proulx
..F. S. Cahill
G. A. Landon
.M. S. Delisle
J. Q. Fafard
.H. E. Lavigueur
A. Lavergne
.Ernest Lapointe
.C. G. Power
E. F. Dussault
.Georges W. Parent..
.P. J. A. Cardin
E. W. Tobin
.A. Lemire
J. E. S. E. d'Anjou.
A. Lavoie
J. C. Walsh
A. W. Lanouette
-W. G. Mitchell
J. A. Denis
J. C. Gauthier
P. L. W. Dupre
.L.S.R.Morin
.Fernand Rinfret
U. Paquin
Lib ...... L. M. Cornellier .........
.Lib ...... A. Forest .....................
..Ind.
Prog.
Lib ...... J. A. Nadeau ..............
.Lab.
Lib ...........................................
.Roch Lanct6t
.P. A. Seguin
.Lib
.Lib
Lib
•Prog.
.Lib
L. G. Gravel
E. Paquet
.Sir Lomer Gouin
J. A. C. Ethier
,.J. B. Bourassa
..J. F. Fafard
..Thomas A. Vien
3,905
3,041
8.126
7,461
4,271
17,829
. 9,488
. 9,654
2,440
. 2,339
4,498
3,245
5,782
10,318
2,561
4,783
1,588
2,809
Lib..
Lib.
Lib.
Lib...
Lib...
Prog.
Lib...
•Prog.
Lib...
J. E. Bernier...
.A. Bellemare...
.H. Boulay
.A. A. Blondin.
.F. A. Giroux...
.C. Robitaille 12,089
..E. Desrochers
..F. J. Pelletier
..L. T. Pacaud
..W. F. Kay
..A. M. Dechene
Ind.
Lib...
Prog.
Lib...
Ind.
.Lib...
Lib...
Ind.
.Lib...
Lib...
.Lib...
Prog.
Lib...
Ind.
Lib...
Lab.
.Lib...
.G. B. Campbell...
J. Lamarche
..R. A. Drapeau
.T. J. Delany
.P. Bertrand
.W. G. M. Morgan.
..A. Trahan
..F. S. Cahill
..M. S. Delisle
..H. E. Lavigueur.
..E. Lapointe
..C. G. Power
.G. W. Parent.
.T. J. Coonan
..W. G. Ross
..P. J. A. Cardin
..E. W. Tobin
..J. E. S. E. d'Anjou.
.J. C. Walsh
Lab.
Ind.-Lab.
.Lib L. J. Gauthier
Lib A. R. O. L. Gauthier.
.Ind.
..W. G. Mitchell
..J. A. Denis
.L. S. R. Morin..
.F. Rinfret
M. J. Demers ............ Lib? ..... Victor Mailloux ............ M. J. Demers
H. H. Marler ............. Lil/. ..... Hon. C. C. Ball
Mrs. R. Henderson.. Lf
Ballantyne H. H. Marler
2,137
5,853
6,966
2,528
3,771
6,027
7,277
7,546
2,296
7,581
3,364
4,026
2,662
7,354
5,116
5,248
3,782
14,965
4,798
10,248
6,158
2,561
RESULT OF THE ELECTIONS: DEFEAT OF THE GOVERNMENT 515
Constituency
Ste. Marie
ShefTord
Opposition
Candidates
.H. Deslauriers
Augustin Germain...
G H Boivin
Poli-
tics
.Lib
.Ind.
Lib
Government Can
didate
H Julien
Member
Elected Maj
H Deslauriers
jority
10,757
3,682
4,508
3,773
792
5,246
7,307
2,579
10 388
2,920
1,668
. 3,396
. 3,339
1,610
1,473
. 326
5,355
. 2,235
4,876
. 5,141
. 232
522
, 715
3,358
3,558
717
. 1,557
..G. H. Boivin
..F. N. McCrea
..W. K. Baldwin
..C. A. Gauvreau... .
Sherbrooke
Stanstead
Temiscouata
Terrebonne
Three Rivers and
St. Maurice
Vaudreuil-
Soulanges
Westmount-
St. Henri
Wright
H. Beaudry
.F. N. McCrea
.W. K. Baldwin
.C. A. Gauvreau
J. F. Pouliot
J E Prevost
.Prog.
.Lib
.Lib
.Lib
.Ind.
Lib
.E. B. Worthington
.P. L. Baldwin
.N. Caron
Hon. G. A. Fauteux...
.Hon. L. P. Normand.
.R. Delorimier
.W. Lemarre
.F. A. Labelle
J. E. Prevost
..Hon. J. Bureau
..Gustave Boyer
..P. Mercier
. R. M. Gendron
.Hon. J. Bureau
Gustave Boyer
A. Pharand
J. Charlebois
.P. Mercier
.R. M. Gendron
H. M. Ellard
A Boucher
.Lib
.Lib
..Ind.
-Prog.
.Lib
..Lib
Prog.
Lib
Yamaska
Antigonish and
Guysborough....
Cape Breton N.
and Victoria
Cape Breton S.
and Richmond.
Colchester
Cumberland
Digby and
Annapolis
Halifax
Hants ..
A Boucher
R. Plante
..Ind
NOVA SCOTIA
.Lib Walter McNeil
Prog.
Lib
C. F. Mclsaac
C. F. Mclsaac
.D. A. Mclsaac
D D McKenzie
D D McKenzie
.M. A. McKenzie
W. F. Carroll
.G. W. Kyte
J. B. McLachlan
E. C. Doyle
Harold Putman
.Prog..
.Lib
.Lib
.Ind
.Ind.
Lib
J C Douglas
W F Carroll
.R. S. McLellan
.Hon. F. B. McCurdy..
..C. E. Bent
A L. Davidson . ..
..G. W. Kyte
..H. Putman
H. J Logan .
.H. J. Logan
J. A. MacKinnon....
.L. J. Lovett
.Hon. A. K. Mac
Lean
E. Blackadder
J. S. Wallace
A. C. Hawkins
L H Martell
..Lib....
..Ind.
..Lib....
.".Lib....
..Lib....
..Ind.
..Ind.
..Lib....
Prog.
..Lib....
.Prog.-
.Lib
.Lib....
.Lib
• Prog.
.Lib
..Lib....
. L. J. Lovett....
..H. Mclnnes, K.C
.J. W. Doyle
..A. Parsons
..Hon. A. K. MacLean.
...E. Blackadder
..L. H. Martell
,..A. W. Chisholm
Inverness
King's
H. E. Kendall
..A. W. Chisholm
I. D. Macdougall
.E. W. Robinson
.William Duff
E. M. Macdonald....
R. McD. Reid
.Hon. W. S. Fielding.
.P. La C. Hatfield
Lab.
.H. W. Phinney
.D. Stewart ,
..E. W. Robinson
..W. Duff
Lunenburg ,
Pictou
Shelburne and
Queen's
Yarmouth &
Clare
.Thomas Cantley
.W.L.Hall
..Hon. E. K. Spinney..
..E. M. Macdonald
..Hon. W.S.Fielding
...P. La C. Hatfield
Charlotte
Gloucester
Kent
Northumberland.
Restigouche and
Madawaska
Royal
St. John City
St. John Co.
and Albert Co.
Victoria and
Carleton
West moreland
..W. F. Todd
..O. Turgeon
..A. T. LǤger
A. J. Doucet
John Morrissy
P. Michaud
.D. H. McAllister.
G. H. Perkins
..H. R. McLellan...
W. P. Broderick...
F. A. Campbell....
W. M. Calhoun....
..T. W. Caldwell
A. B. Copp
NEW BRUNSWICK
...Lib R. W. W. Grimmer R. W. W. Grimmer 133
...Lib J. E. DeGrace O. Turgeon 4,829
...Lib A. T. Leger 1,523
...Prog.
...Lib E. A. McCurdy John Morrissy 1,421
...Lib W. S. Montgomery P. Michaud 5,870
...Lib George B. Jones G. B. Jones 117
...Prog.
...Lib Hon. J. B. M. Baxter.. Hon. J. B. M. Baxter.. 1,115
...Lib M. MacLaren M. MacLaren 370
...Lab
...Prog.
A. E. Trites
York-Sunbury W. J. Osborne...
.Prog. B. F. Smith
..Lib O. B. Price
-Prog.
.Lib R. B. Hanson R. B. Hanson
T. W. Caldwell.
A. B. Copp
1,052
7,762
866
MANITOBA
Brandon
Dauphin
Lisgar
..F. C. Cox
R. Forke
..W. J. Ward
J. L. Brown
...R. Forke
.Lib C. E. Ivens
•Prog.
.Prog. R. Cruise W. J. Ward..
.Prog. Hon. R. Rog..ers J. L. Brown.
... 5,529
... 5,641
... 1,164
516
THE CANADIAN ANNUAL REVIEW
Opposition Poli- Government Can-
Constituency Candidates tics didate
Macdonald W J Lovie Prog.. A. S. Argue
Member
Elected M
..W. J. Lovie
.Hon. T. A. Crerar
Robert Milne
ajority
... 3,953
... 5,566
... 5,729
... 1,495
177
J. Rocan Lib
Marquette Hon. T. A. Crerar.... Prog.. ..General H.M. Dyer...
L. St. G. Stubbs Lib.
Neeoawa Robert Milne Prog H R Ross
Nelson....^ ["""".".'.'.'T. W. Bird Z'.l'...Prog....B. E. Rothwell
Portage la Prairie A. M. Bannerman....Lib Rt. Hon. Arthur
Meighen
.T. W. Bird
.H. Leader .
H. Leader Prog.
Provencher A. L. Beaubien Prog.. ..A. Prefontaine
.A. L. Beaubien
L P Bancroft
... 1,012
... 3,214
3 666
J. P. Malloy Lib
Selkirk L P Bancroft Prog T Hay
J E Adamson
J. Steedsman
T. H. Dunn Lab.
S. J. Johannesson Lib....
Souris J. Steedsman Prog....R. G. Willis
Springfield R A Hoey . Prog.. ..A. D. Sutherland
.R. A. Hoey
... 1,397
... 3,740
715
T. B. Molloy Lib.
Winnipeg Centre J S Woodsworth Lab J K Mclvor
J. S. Woodsworth
..E. J. McMurray...
"]'. W. Wilton Lib.
Harriet S. Dick Soc.
G. W. Andrews Ind.-Cons.
Winnipeg North.. .E. J. McMurray Lib M. R. Blake
R. B. Russell Soc.
J. Penner Lab.
Winnipeg South A B Hudson Ind G N Jackson .
.A. B. Hudson
..J. A. Clark
... 2,866
5,280
W. R. Hogarth Lib..
BRITISH COLUMBIA
Burrard M A. Macdonald Lib.. .. J. A. Clark
J. D. Harrington Soc.
Cariboo T G McBride Prog J T Robinson
T G McBride
3 306
Comox-Alberni A. W. Neill Prog....H. S. Clements
J. E. Armishaw Ind.
Fraser Valley E. A. Munro Lib.. F. B. Stacey
A. W. Neill
1,235
.E. A. Munro
215
Kootenay East . R E Beattie Lib S Bonnell
R E Beattie
136
... 900
... 2,738
W. S. MacDonald....Prog.
Kootenay West.... L. W Humphrey Prog W. O Rose
..L. W. Humphrey
.C. H. Dkkie
R. B. Staples Lib.
Nanaimo T. B. Booth Lib... C. H. Dickie
W. A. Pritchard Prog....
New WestminsterR. P. Pettipiece Soc W. G. McQuarrie
.W. G. McQuarrie
18
38
... 4,955
... 773
.. 2,452
542
John Reid Lib.
Skeena A Stork Lib C W Peck
.A. Stork
.H. H. Stevens
.L. J. Ladner...
..Hon. S. F. Tolmie
J A MacKelvie
Vancouver Centre R. H. Gale Lib H. H. Stevens
T. O'Connor Soc.
C F Batson Prog
Vancouver South.. Brig. -Gen. V. W.
Odium , Lib L J Ladner
T. Richardson Soc
J. Kavanagh Com.
J. I. Richmond Prog.
Vancouver City....W. McK. Ivel Lib Hon. S. F. Tolmie
Yale D W Sutherland Lib J A MacKelvie
PRINCE EDWARD ISLAND
King's J J Hughes Lib J Mclsaac
J J Hughes
821
D. J. Mullin Prog.
Prince.. A E MacLean Lib James McNeill
..A. E. MacLean
J E Sinclair
... 1,259
1,350
Horace Wright Prog
Queen's J. E. Sinclair Lib J. H. Myers
D. A. Mackinnon Lib D. McKinnon
J. W Jones Prog
..D. A. Mackinnon
.O. R. Gould
.T. H. McConica
.C. W. Stewart
.A. M. Carmichael
J. F. Johnston
.M. N. Campbell
807
... 3,702
... 7,598
... 5,573
... 10,916
.. 9,471
.. 2,356
P. S. Brown Ind.
SASKATCHEWAN
Assiniboia O R Gould Prog W W Lynd
Hugh McLeod Lib
Battleford T. H. McConica Prog
A. Champagne Lib.
Humboldt C. W. Stewart Prog.... Norman Lang
O. F. Meillicke Lib.
Kindersley A. M. Carmichael ..Prog....E. T. W. Myers
Last Mountain J. F. Johnston Prog....T. F. Thompson
Mackenzie M. N. Campbell Prog....W. D. Dunlop
Michael Clark Lib. Wasyl Swystun Ind
RESULT OF THE ELECTIONS: DEFEAT OF THE GOVERNMENT 517
*Constituency
Maple Creek
Moose Jaw
North Battleford.
Prince Albert
Qu'Appelle
R.egina
Saltcoats
Saskatoon
Swift Current
Weyburn
Opposition
Candidates
.N. H. McTaggart...
.R. M. Johnson
W. E. Knowles
.C. C. Davies
W. W. Livingston
.A. Knox
L. W. Brigham
John Millar
.W. R. Mot her well..
Hugh MacLean
.Thomas Sales
Thomas MacNutt...
H. H. Christie '..
John Evans
P. D. Stewart
.A. J. Lewis
W. P. MacLachlan
John Morrison
Poli-
tics
.Prog...
.Prog...
.Lib.
,.Prog...
.Lib.
•Prog.
..Lib.
..Prog...
..Lib
..Prog.
..Prog..
.Ind.
.Lib.
..Prog...
..Lib.
Prog.
Lib.
..Prog...
Government Can-
didate
.D. J. Wylie
.S. A. Hamilton
.Harold Herbert
D W Paul
Member
Elected M
...N. H. McTaggart
R M Johnson
ajority
.. 9,672
... 929
.. 4,190
... 3,563
... 4,645
... 1,778
... 3,349
.. 4,114
. 5,625
...C. C. Davies
A Knox
.E. E. Perley
.M. A. MacPherson...
.Hon. J. R. Wilson
I. E. Argue
...John Millar
....W. R. Motherwell
...Thomas Sales
...John Evans
...A. J. Lewis
.R. F. Thompson
...John Morrison
.,. 4,096
ALBERTA
Battle River H. E. Spencer Prog....J. W. G. Morrison.
H. V. Fieldhouse Lib
Bow River E. J. Garland Prog....W. R. Fulton
Calgary East Wm. Irvine Lab.-
Prog. A. L. Smith Wm. Irvine
Duncan Marshall Lib.
Calgary West J. T. Shaw Lab.-
Prog....Hon. R. B. Bennett J. T. Shaw
E. F. Ryan Lib.
Edmonton East....D. F. Kellner Prog....H. A. Mackie
H. E. Spencer 10,521
E. J. Garland 7,948
16
Edmonton West.
Lethbridge
Macleod
Medicine Hat
Red Deer
Strathcona
Victoria
J. A. Clarke Lib.
..D. M. Kennedy Prog....R. E. Campbell...
.Vjr. V_.
J.Fa
J. E.
.R. GJ
Hon. Frank Oliver.. .Lib.
.L. H. Jelliff Prog....W. S. Ball
J. E. Levering Lib.
.G. C. Coote Prog. H. M. Shaw
Fairhurst Lab.-Ind.
Gillis Lib.
Gardiner Prog....W. Mclntosh
F. W. Gefshaw Lib.
.A. Speakman Prog....J. F. Day
W. W. B. McInnes...Lib.
..D. W. Warner Prog....J. McC. Douglas..
Rice Sheppard Ind.
.W. T. Lucas Prog....J. B. Holden
C. F. Connolly Lib.
.F. T. Congdon Lib George Black
D. F. Kellner 1,947
D. M. Kennedy 1,408
L. H. Jelliff 1,791
G. G. Coote 4,319
R. Gardiner 7,597
.A. Speakman
.D. W. Warner....
8,205
4,394
9,622
49
....W. T. Lucas
C. F. Connolly Lib.
Yukon F. T. Congdon Lib George Black George Black
Opinions as to this sweeping action of the electorate were
varied. Mr. Mackenzie King was assured as to its main sig-
nificance : "The people want a return to representative and
responsible government in the broadest sense of the term.
They want a Government that will have a mind and purpose of
its own, which it can carry out without compromise, or fear,
or favour in any direction." Mr. Meighen did not express any
immediate opinion of the result; the Prime Minister undoubt-
edly felt the loss of his seat, though many others were offered
to him ; the first Members-elect to suggest resignation in his
favour being John Hubbs, Prince Edward County, Ontario, and
General Clark of Vancouver. Mr. Crerar expressed himself as
follows : "The practically clean sweep in the Prairie Provinces
and the very emphatic majorities received, express in a very
clear and definite manner the opinion of Western Canada. It
was our first campaign in a National issue, and, while the re-
turns from Eastern Canada did not come up to expectations, on
the whole, I am well satisfied with the result."
*NOTE. — There were a few other candidates (Socialist, Labour, Independent, etc.) who were
practically unsupported, and have been omitted here.
518 THE CANADIAN ANNUAL REVIEW
Press opinion of the result was at times illuminative, fre-
quently partisan, often interesting. The Toronto Globe eulogized
Mackenzie King, "whose very remarkable campaign in all
parts of the country contributed more than anything else to the
party's success," and described the result as "a popular uprising
against autocracy." The Montreal Star described the causes of
the Government collapse as follows: "The new leaders of the
party have pursued a policy for the last few years that has
driven from their side most of the powerful influences which
have usually ranged themselves under the Conservative banner.
This time the Railway interests distrusted and feared them.
7 This time, British sentiment was not enlisted in their favour.
This time, there was no reason why industry should dread a
Liberal victory with Sir Lomer Gouin and his stalwart Protec-
tionists at headquarters. The wonder is that they saved so
much from the wreck. The cure is to get back to Conservative
principles." In another issue it declared that Mr. Meighen, at
the Imperial Conference, had estranged the British sentiment of
Canada by becoming the principal public protagonist of the
American policy of distrust and ingratitude toward Japan — a
British ally.
The Ottawa Journal (Cons.) agreed with the Hamilton
Herald (Ind.) in declaring that the Government — if* credited
with the record of the Unionist Ministry — was "the greatest in
point of achievement" which Canada had ever had. There were
tributes to the tremendous fight Mr. Meighen had put up against
heavy odds, but the burden of the comment turned on Quebec.
The Montreal La Paine (Ind.) declared that the Government
had been defeated "because, being a war Government, it re-
, mained autocratic after peace was restored; because, having
y no mandate, it made no progress toward reconstruction; be-
cause it was antagonistic to Quebec. The Province of Quebec
is splendidly vindicated." L'Evenement (Cons.) of Quebec City
stated that: "The Liberal majority is small, but will increase
rapidly because the country does not want another struggle like
this one and is satisfied that Protection is secured, thanks to Sir
Lomer Gouin's bloc of supporters." La Presse described it as a
great Liberal victory and as a proof that Quebec could again
take her rightful place in the government of the country.
The English-speaking press was tinctured at many points
with suspicion as to the outcome along these lines. The Toronto
Mail and Empire (Cons.) on Dec. 10 expressed grave fears as to
Quebec ascendancy: "The question now is, are we to be gov-
erned on Canadian lines or just French-Canadian lines? Quebec
is solid, and she is under the command of an able leader. Sir
Lomer Gouin is suave, astute, and resourceful, and he is sur-
rounded by a staff of political veterans." They were compared
favourably with those surrounding Mr. Meighen and a long
party reference followed as to the harm Sir W. Laurier had done
to Canada in his Railway policy. The Winnipeg Fre$ Press,
i
FORMATION OF THE MACKENZIE KING GOVERNMENT 519
which was Liberal by tradition but Progressive to a consider-
able degree in this contest, was denunciatory of Quebec in its
terms (Dec. 12), with the conclusion that: "Montreal district
went solid for Sir Lomer Gouin, high protection, the rights of
the Business Interests to control and administer the country
and 'Down with Government ownership of railways/ The
Toronto Telegram, a journal of curiously combined Tory and
Radical proclivities, declared that : "The defeat of the Con- y
servative party is due to the French-Canadians of Quebec and
the foreign vote on the Prairies." This contention was cleverly
amplified in many references to Quebec as "avenging Laurier"
or as obtaining its revenge for Conscription. The Toronto Star
(Lib.) stated (Dec. 15) that "the financial group in Montreal
betrayed Mr. Meighen but overplayed its hand" ; the Win-
nipeg Free Press took a similar stand (Dec. 27) in respect to Mr.
King's succeeding negotiations with the Progressive leader.
The Orange Sentinel of Toronto (Dec. 20) was vehement in its
outlook and conclusion that "French Canada is on top now, with •/
a vengeance."
Fortunately for Mr. King, in accepting the
Formation Governor-General's invitation to form a Cabinet
of the New ^ after Mr. Meighen's resignation, he did not have to
MaclcenzS1*1 cons^er the Conservative point of view, nor did he
King as seek any sort of alliance or understanding with
Prime that party. But the official call had not come im-
Minister. mediately to the Liberal leader and, meantime,
various personal negotiations were going on while
the press was arranging and re-arranging the coming Govern-
ment in varied forms with, however, a certain number of as-
sumed certainties in popular selection. It was taken for grant-
ed that Hon. Mackenzie King would form the new Cabinet and
that it would be practically settled, in detail, when the retiring
Government had completed arrangements and the official in-
vitation issued. The press in each Province had its favourites
for choice with certain personalities upon whom all were united,
such as Hon. W. S. Fielding, Hon. G. P. Graham and Hon. C.
Murphy, Sir Lomer Gouin, Ernest Lapointe, Hon. H. S. Beland,
Hon. R. Lemieux; W. R. Motherwell for Saskatchewan, A. B.
Hudson for Manitoba, Walter Mitchell for Quebec, Senator
Bostock for British Columbia, Hon. Charles Stewart for Alberta,
Hon. W. E. Foster for New Brunswick. Others proposed were
W. C. Kennedy, G. N. Gordon and W. D. Euler in Ontario, Hon.
A. K. Maclean, and William Duff in Nova Scotia.
As the days developed toward a definite, decision, there
were many interesting incidents and speculations and some
assured statements. On Dec. 9 a public Reception was tendered
at Halifax to Mr. Fielding; more than 1,000 citizens shook hands
with the prospective Minister of Finance and congratulated
him upon the solid Liberal bloc from Nova Scotia. In a brief
520 THE CANADIAN ANNUAL REVIEW
speech they were told that : "I doubt if, even yet, the people of
Canada realize the immense task which confronts the new Gov-
ernment. There is a danger that they may be expecting too
much. Perhaps there is no country in the world, with the same
population, that has so many governmental difficulties as Canada
— differences between East and West, racial differences, dif-
ferences in religion." He was, however, hopeful as to the out-
come. The Toronto Globe on Dec^lA had a conspicuously pub-
lished declaration as to Mr. King's future policy: "First and
foremost The Globe understands that he is aiming to give the
country a national Government. In so far as it can be accom-
I plished, the new Administration will represent in a real sense
J the whole people. Essentially, it will be democratic, x x x
1 The principles and policies that the people endorsed at the polls
will dominate and guide the Administration. Tariff revision will
be essayed cautiously and justly. The enterprise of the Public
ownership and operation of the National system of railways will
be given a full and a fair trial. Rigorous economy will be prac-
tised." At Newmarket, on Dec. 14, the Premier-elect addressed
his constituents and received an ovation.
Meanwhile, the press had begun to discuss alleged negotia-
J tions between Mr. King and Mr. Crerar which it appeared, later,
were initiated in a letter borne to the Progressive leader by
Andrew Haydon, the National Liberal organizer. It early ap-
peared evident that Mr. Hudson, who had captured a strong Con-
servative seat in Winnipeg, who, probably, was the leader of
the Bar in Manitoba and, at the same time, a close friend and
legal adviser to Mr. Crerar, would not join the Cabinet without
the latter's approval. Opposition to any rapprochmcnt between
the two organizations also developed with rapidity. First it
was said to come from Protectionist Liberal sources and, especi-
ally, from Quebec Liberal leaders. Publicly it was expressed
by Farmers' organizations such as the U. F. O., whose thousand
delegates in Convention at Toronto (Dec. 14) passed the fol-
lowing Resolution: "That it is in the interests of Canada that
the National Progressive Party should remain intact, and de-
vote itself, earnestly, in the next Parliament to effecting by
legislation the recommendations upon which it was elected."
It was generally stated, at this time, that Hon. E. C. Drury,
Premier of Ontario, was included in the negotiations, and the
subject was discussed at an Ontario caucus of the Party on the
20th.
On the same day Mr. Crerar attended a private meeting at
Saskatoon of the 33 Progressive members of Parliament elected
from the West, and the matter was carefully discussed ; nothing
was made public except the fact of a proposition having been re-
ceived with the statement that Mr. Calder would further consult
the Canadian Council of Agriculture at Winnipeg and would
then proceed to Ottawa, accompanied by Alfred Speakman, M.P.,
of Red Deer, and R. M. Johnson, M.P., of Moose Jaw. The
/
v
FORMATION OF THE MACKENZIE KING GOVERNMENT 521
Winnipeg meeting took place on the 21st, with H. W. Wood,
Hon. George Langley, J. A. Maharg, and other leaders present,
but no announcement was made. Meanwhile, the Toronto Globe
(Dec. 16) declared that Mr. King, in seeking the co-operation of
Mr. Crerar, had done a statesmanlike thing; that isolation for
the Progressives was unwise ; that full Western representation
in the Government was desirable, and that the invitation was an
obvious proof of Liberal freedom from Big Interest control.
The reply of the Farmers' Sun (Dec. 17) was explicit: "The
Farmers do not intend allying themselves with the Liberals any
more than with the Conservatives. The Globe is on the wrong
track when it tries to win the Farmers' Party to the anti-public
ownership, high protectionist, Liberal Party." The Winnipeg
Free Press (Dec. I/) opposed any combination or coalition unless
Mr. King was prepared to carry out Progressive policies. On
the 20th it declared that : "Mr. King is asking Mr. Crerar and /
Mr. Drury to take an immense risk. If matters work out all
right he is the gainer ; if they do not work at all Mr. Drury and
Mr. Crerar will have eliminated themselves and the Progressive
movement will have been blown to pieces." Miss MacPhail, M.P.,
was emphatic in her view, as expressed at Woodstock on Dec.
17: "We don't think Mr. Crerar will accept. But if Mr. Crerar
does go into the King Cabinet it means that we must choose a
new Leader." The Alberta Farmer of Calgary was also opposed
(Dec. 22) to coalition: "By remaining absolutely independent
and assuming a position where its support will be guaranteed
for all good legislation, the Progressive party can serve its own
and the country's cause best." On the other hand, the negotia-
tions were warmly approved by the Regina Leader, an influential
Liberal journal.
On Dec. 23 Mr. Crerar was in Toronto consulting Mr. Drury
and the Ontario leaders ; he was accompanied by Messrs. John-
son and Speakman and Robert Forke, a Manitoba M.P. On
the 24th he held a long conference with Mr. Mackenzie King at
Ottawa, and on the 25th the press reported that there would be >/
no Liberal^Progressive combination. The Winnipeg Free Press
(Dec. 27) declared that the only condition under which the
negotiations could have succeeded was "a certain fundamental
identity of belief and outlook which would make the coalition
the forerunner of a merger." J. J. Morrison issued a statement
to the Farmers' Sun (Dec. 28) that: "Mr. King's attitude ap-
pears to be for political rather than National advantage. If Mr.
King gives good government, the Progressive forces will not
embarrass him. If he does not give good government, they cer-
tainly will, so far as lies in their power, x x x But the
U. F. O. cannot be the discredited adjunct of the Liberal Party."
The Sun, itself, declared that merging with either of the old
parties would mean "the death of the Farmers' movement," and
that they did not intend to "pull the chestnuts out of the fire"
for Mr. King.
522 THE CANADIAN ANNUAL REVIEW
Meanwhile, Mr. King had other matters to consider, and
one notable viewpoint was expressed by La Presse, the most in-
fluential Liberal journal in Quebec, which (Dec. 20) announced
that : "Since the country has decided to associate Quebec Prov-
ince in the work of economic reconstruction of Canada x x x
Quebec demands that there be given to her representatives in
, the Federal Parliament their fair share, their whole share, of
J influence. And this influence should be measured not only by
the number of portfolios, but also by their importance. The
'big interests' of Ontario, whose greed is limitless, may not
agree with this claim." During this period the Premier-elect
had been meeting and consulting all the more distinguished
Liberals in the country, and Ottawa was, for the moment, a sort
of political Mecca. On Dec. 29 the Meighen Government re-
signed office, the Hon. Mackenzie King accepted the call of the
Governor-General and was sworn in as Prime Minister of
Canada and at once issued a statement together with the an-
nouncement of his Cabinet.
In this document the new Premier stated that: "In the
J formation of the Government I have aimed, above all else, at
National unity. This end I have felt would be served, and the
Federal spirit of our constitution most acceptably recognized, by
according representation in the Cabinet, so far as might be pos-
sible, to all the Provinces of Canada." A careful reference to
the Progressives followed: "I made known that, regardless of
existing differences, I was prepared to consider representation
in the Cabinet of all who were prepared to advocate and support
Liberal principles and policies ; while it was felt by those with
whom I conferred that existing conditions would not permit of
representation of their followings on this understanding, I have
reason to believe that the attitude assumed by myself in this
particular was duly appreciated and met in like spirit."
As to the new Cabinet, he announced that (1) the size had
been reduced from 22 to 19; that (2) "the allotting of port-
folios to members of the Senate will not be continued as a prac-
tice and, except for very special reasons, Ministers of the Crown
holding portfolios will hereafter be selected from members of
Parliament occupying seats in the House of Commons"; that
(3) "the Departments of Militia, Naval Service, Air Force, and
possibly also Mounted Police, are to be combined in one De-
partment of National Defence"; that (4) early consideration
"will be given by the new Administration to the desirability of
appointing, in an honourary capacity, from among members of
the House of Commons, Parliamentary Under-Secretaries to
assist the Ministers during the Parliamentary Sessions". It
was, also, stated that Senator Bostock's appointment was tem-
porary, and that he would be the next Speaker of the Senate ;
that the Hon. Raoul Dandurand would, probably, be the Gov-
ernment leader in the Senate; that Hon. R. Lemieux would be
the Government candidate for Speaker of the Commons. The
Cabinet, as announced, was as follows :
FORMATION OF THE MACKENZIE KING GOVERNMENT 523
Prime Minister, Secretary of State for Ex-
ternal Affairs, President of the Privy Hon. William Lyon Mackenzie
Council King, C.M.G., PhD. U,.D.,
Minister of Militia and Defence, and Minister
of the Naval Service Hon. George Perry Graham
Postmaster-General Hon. Charles Murphy, B.A., K.C.
Minister without Portfolio Hon. Thomas Andrew Low
Minister of Railways and Canals Hon. William Costello Kennedy
Minister of Labour Hon. James Murdock
Minister without Portfolio Hon. Raoul Dandurand, U,.D.,K.C
Minister of Soldiers' Re-Establishment, and
Minister in charge of the Department of
Health Hon. Henri Severin Beland, M.D,
Minister of Justice Hon. Sir Lomer Gouin, K.C.M.G..
Minister of Customs and Excise Hon. Jacques Bureau, LL.B.
Minister of Marine and Fisheries Hon. Ernest Lapointe, B.A., K.C.
Minister of Trade and Commerce Hon. James Alexander Robb
Minister of Finance Hon. William Stevens Fielding,
Minister without Portfolio and Solicitor-
General Hon.. Daniel Duncan McKenzie,
Secretary of State Hon. Arthur Bliss Copp, U,.B.
Minister without Portfolio Hon. John Ewen Sinclair
Minister of Agriculture Hon. William Richard Motherwell
Minister of the Interior, Superintendent -
General of Indian Affairs, Minister of
Mines Hon. Charles Stewart
Minister of Public Works Hon. Hewitt Bostock, M.A.
The Cabinet was thoroughly representative of Canadian
Liberalism in thought and action, and included many of those y
who had borne the brunt of the battle for this political faith in
recent years. Mr. Lapointe, Mr. Graham, Mr. MacKenzie, Mr.
Low, Mr. Robb and Mr. Murphy all entered the House of Com-
mons between 1904 and 1908; Mr. Fielding dated back to 1896,
when he left the Premiership of Nova Scotia to join the Laurier
Cabinet, while Mr. Beland had been elected in 1902 and Mr.
Bureau in 1900; Sir Lomer Gouin, Mr. Stewart, lately Prime
Minister of Alberta, Mr. Kennedy, Mr. Motherwell and Mr.
Murdock were new to the Commons, while Mr. Bostock had
been in the Senate since 1904; Mr. Copp and Mr. Sinclair were
comparatively new but energetic members of the House. The
new Prime Minister had distinguished himself in several fields.
As a young man he won the University prizes of M. A. and
Ph.D. ; as Deputy Minister of Labour, Chairman of various
Royal Commissions, Minister of Labour in 1909-11, and Special
Commissioner under the Rockefeller Foundation, he had won
high repute as an expert in Labour and industrial matters ; as
representative of Canada on various Immigration Commissions,
he had done good service and won a C. M. G. from the Imperial
Government; as President of the Ontario Reform Association
in 1912-14 and as Dominion Liberal leader for some years and
member of Parliament in 1908-11 he had won political distinc-
tion; as the Author of two books — The Secret of Heroism and
Industry and Humanity — he had obtained literary reputation.
Now. at the age of 47, he was Prime Minister of Canada.
524
THE CANADIAN ANNUAL REVIEW
Meantime, the Progressive leader had announced that his
party would not take the position of an official Opposition, nor
would he accept the salary which might go with the post of
Opposition leader ; the Progressives would adopt an independent
stand from which they could watch Government legislation and
support it so long as it was upon lines of Progressive thought.
Mr. Meighen was in a peculiar position and, except by special
action, could not lead his Party at the opening of Parliament;
there had to be a resignation or the appointment of some mem-
ber to a salaried post under the Crown before he could be elect-
ed. On Dec. 27 it was announced that the Government, before
giving up office, had appointed A. C. Casselman, member-elect
for Grenville, to a nominal position in the Department of Sol-
diers' Civil Re-Establishment at a salary of fifty dollars a
month. This vacated the seat, in which the bye-election was at
once appointed for Jan. 26 of the following year; a little later
ten seats were vacated by the appointment of the new Ministers
and bye-elections appointed for Feb. 2nd following.*
*Note. — Mr. Meighen was opposed but elected in Grenville, and all the Minister*
were returned by acclamation.
The Drury
Government
in Ontario:
Policy and
Administra-
tion in 1921.
PROVINCIAL AFFAIRS
IN
ONTARIO
The Government of the Hon. E. C. Drury pass-
ed through the year with surprisingly little political
trouble, despite its lack of an actual majority in
the Legislature — though the United Farmers were
nearly double the number of any other Party in
the House ; the experience of two years seemed to
show no desire on the part of Liberals and Con-
servatives to unite against the Government while, as a rule, the
support of the 14 Labourites was assured. Mr. Drury, dur-
ing the year, took an increasing interest in public affairs out-
side of routine administration or Legislative debate. He spoke
on various subjects and shared actively in the Federal elections,
with a number of speeches on the Crerar platform and with Mr.
Crerar in his Ontario tour; more and more he urged avoidance
of class consciousness and division on class party lines. He was
understood in December to have declined a place in the new
Liberal Government at Ottawa.
At St. Thomas, on Jan. 4, he told the Chamber of Commerce
that : "There is room in Ontario for the growth of a new polit-
ical movement, but it must not be confined to any class or
classes." He repeated his well known views as to Canada's
unique position in respect to the United States and Great Britain,
and likened the Dominion to a connecting link between the Re-
public and the Empire. He classed all efforts to stir up the
English-speaking citizens of Canada against the French-Cana-
dians as rank treason, and appealed for a union of the races :
"Canada has too much at stake to allow such divisions to de-
velop ; the community spirit should be encouraged in every
way between rural districts and the small towns and villages
and less attention be given to the development of the cities."
He favoured strict Immigration laws and deprecated the In-
former, or spy system, in respect to Motor laws and other Acts.
To the Canadian Club, Hamilton, (Jan. 10) the Premier
claimed that the Farmer movement, which had spread from
coast to coast of the Dominion, was not born of political am-
bition, but rather of a determination to better rural conditions.
That was, he declared, the original aim of the movement, and its
success in Ontario in the last Provincial election was far greater
than its friends had hoped for. He reiterated a theory voiced
at the St. Thomas meeting: "The nation that succeeds in re-
ducing the cost of living to the lowest possible level and, at the
same time, raises its standard of living to the highest plane, will
be numbered amongst the greater nations in the near future."
Referring to the depopulation of rural districts, Mr. Drury said
that the causes were economic chiefly: "The isolation of farm
[525]
526 THE CANADIAN ANNUAL REVIEW
life, its difficulties and lack of conveniences and comforts, all
contribute to the migration of farmers to the cities."
An earnest plea for better Educational facilities for rural
districts was made : "The isolated country school is unsatisfac-
tory. Present facilities provide for only primary education,
and provision should be made for some form of secondary train-
ing, with the establishment of High Schools in the country,
wherever there is need for them." At Queen's University,
Kingston, on Jan. 12, Mr. Drury received an Hon. LL.D., and
expressed appreciation of the work done by small Universities
as being worthy of the definite support of the Province. In
another speech he urged the duty of preserving forest lands,
and added: "The time is not far distant when Canada will be
faced with a timber shortage ; the remedy is the re-afforestation
of old deserted land in Old Ontario and new lands in Northern
Ontario. The policy of the Government as to lands fit only for
timber is that the municipalities should acquire them and the
Government re-afforest them at its own expense — carrying the
burden until the municipalities are ready to assume charge."
The Brary-Morrison Controversy and the Government. At
Milton, on Jan. 14, an issue of the previous year was revived
and the "broadening out" policy for his party enunciated in clear
terms: "The Farmers cannot, and ought not to, rule the coun-
try. To do so would be a sort of tyranny. We are in a minor-
ity, and we must not attempt to do it because we are a democ-
racy, x x x I believe the Farmers' organization should not
go into politics as an organization. It has altogether too great
a work to do in other directions to risk its life or waste its
energies by participating directly in politics." Interviewed by
the Toronto Globe (Jan. 17) Mr. Drury was still more explicit:
"The political organization born of the United Farmers of On-
tario must live its own life distinct from that of the parent.
It is a well-known and established fact that the Farmers have
enunciated a platform which appeals to other classes in the
community besides the farmers. In this new political move-
ment the Farmers will always have an honoured and powerful
place. But to refuse to men and women of other classes, or
other industries, an equal place in this political movement would
be to rouse against it all the animus which would undoubtedly
be directed against a class movement, and would predestine it
to a short and ineffectual life." Meantime, at Wilton Grove
(Middlesex), on Jan. 15, J. J. Morrison, the Secretary and an
aggressive leader of the U .F. O., made a fighting speech in op-
position to the Premier's statement and policy :
The Farmers organization did not go into politics. The people went
into politics. The movement originated when the Farmers went in a
deputation to Ottawa to wait on the Government and they learned
just where they stood (re Conscription of Farmers' sons). They march-
ed to the Parliament Buildings and demanded their rights, but they did
not get them. Then they went into Manitoulin Island and the people
elected Beniah Bowman. That was democracy. There is not a word
THE DRURY GOVERNMENT AND POLICY IN ONTARIO 527
in the constitution of the U. F. O. about politics. If the farmers had
not gone into politics would Mr. Drury have been where he is to-day?
Absolutely not. If Mr. Drury felt like that why did he accept the Prem-
iership when it was offered to him? If he could not subscribe to our
principles why did he accept the Premiership of our Government? Is
he ashamed of the people who made him? x x x The Farmers don't
want to rule the country. They went into politics only for equal rights
and a fair representation for their organization. But when we got into
the race and elected more than we expected we had to go through with
it, accept the responsibility, and take our place in charge of Govern-
ment. But the Premier says we are in a minority and must not attempt
to rule, because we are a democracy. If this is the doctrine that is to be
circulated from one end of the Province to the other, there is going to
be something doing very soon.
This difference of opinion and view excited much interest,
and on the 18th a Government caucus, including the Farmer and
Labour members of the Legislature, met and discussed the
issue ; a unanimous vote of confidence in the Premier was pass-
ed, though without any direct reference to the question involved.
The Farmers' Sun, of Jan. 19, followed in defence of Mr. Morri-
son's views, though with the claim that both leaders were aim-
ing at the same end by different methods. Mr. Drury was de-
scribed as willing to take in other organizations holding similar
opinions and going forward together as a new People's Party;
Mr. Morrison was described as desiring the farmers to develop
a class consciousness, to organize as a Group and to work for
Group government, but to be willing, after the end was achieved,
to co-operate with other Groups. As to the rest: "We admit
that the Drury Government would be strengthened, temporarily
at least, by bringing in members from other classes, or by at-
tracting recruits from the Liberal and Conservative members
of the present Legislature. But the Organized Farmers are
not concerned, primarily, with obtaining power. They went in-
to politics in order to obtain their just rights, and it makes very
little difference to them whether they hold the reigns of power
or merely hold the balance of power. The majority of the
U. F. O. believe that more good can be accomplished by the
farmers retaining their class consciousness, or class identity,
than by merging with others."
R. W. E. Burnaby, President of the U. F. O., supported Mr.
Morrison in an interview in this journal, and described Mr.
Drury's Milton speech as savouring of autocracy rather than
of democracy; W. A. Amos, Vice-President, expressed similar
views, and declared that the farmers had been driven to the
formation of a class movement for self-defence against highly
organized bodies in other walks of life ; Lieut. -Col. J. Z. Fraser,
President of The Farmers' Sun, stated that Mr. Drury was being
"unwittingly used as an instrument of destruction" in respect
to the Farmers' movement. W. C. Good, of Paris, afterwards
elected to Parliament at Ottawa, as a Progressive, wrote The
Globe, on Jan. 21, that: "We have now quite a number of polit-
ical 'groups,' and surely it is a denial of democracy to refuse
these groups representation. With Proportional Representation
528 THE CANADIAN ANNUAL REVIEW
we may reasonably look forward to a Legislature containing
representatives of all the principal political groups in proportion
to their respective voting strengths, and these groups may be
based either upon occupations or upon adherence to certain
political ideals."
A special meeting of the United Farmers' Executive occur-
red in Toronto, on Jan. 19 ; Hon. F. C. Biggs, Hon. Peter Smith
and Hon. Beniah Bowman of the Government attended, and told
the members about the Government policy — especially as to
Roads, Finance and Forests. On the 20th Mr. Premier Drury
attended another meeting of the Executive, and for some hours
(according to The Globe) discussed matters with Mr. Morrison.
No report was issued, but it was stated that an amicable under-
standing had been arrived at; succeeding speeches, however,
did not show any approximation in view. Mr. Morrison, on the
21st, told the Electric Club in Toronto that it was natural and
right for the Farmers to enter politics : "Is class consciousness
wrong? No; it is absolutely right. Why are you here as an
Electric Club? It is because you are class-conscious in your
business. Every industry is class-conscious. If you see a nation
which is not class-conscious you will find it at the fag end of
civilization." In the Legislature, on Jan. 31, Mr. Drury was
equally explicit : "When I was asked to lead the U. F. O. forces
before the last Election I stipulated that it should not be a class
party. To-day I state in the most unequivocal terms that the
Government of which I am the head represents in a very real
way not merely that 40 per cent, of our people who live on the
farms, but also the great bulk of the people of the Province. I
believe that this party may expand and become in a very real
sense, not a Farmers' Party, but a People's Party. On that
declaration I make my stand to-day, as I did a year and a half
ago."
This subject came up, again, later in the year, when Mr.
Morrison was interviewed by a New York journalist (un-
named) with his statements appearing in the Farmers' Sun of
Aug. 27. In it the U. F. O. protagonist denounced the two-party
system, Orders-in-Council, Closure Acts, Government Commis-
sions, and then gave his practical view of Group government:
"You have a Legislature of 110 members, and there are 28 Lib-
erals, 27 Tories, 44 United Farmers and 11 Labourites. Let a
Cabinet be formed with a nearly equitable allotment of seats,
giving the Liberals two, the Tories two, the United Farmers
four and the Labourites one. That would preserve the balance
of members in the House, give fair representation, with no party
dominant, and the actual leadership going to the largest party,
which would be the United Farmers. Then, when any member
brought in a Bill it could be openly debated on its merits and
carried, or lost. If lost, it would not mean the defeat of an Ad-
ministration— simply the defeat of the measure. This would be
real group government, and would not lend itself to the auto-
THE DRURY GOVERNMENT AND POLICY IN ONTARIO 529
cracy of leadership, where the party is whipped into line to
accept this measure or that." The Globe (Sept. 15) criticized
this proposal as follows : "The inevitable result would be the
consolidation of town against country — the organization of an
Urban group to oppose the Farmer group. The substitution of
an occupational class struggle for the political party rivalries
of the past would be far more likely to produce economic chaos
and Governmental inefficiency than the old-time strife between
Liberals and Conservatives. We see in Russia the results of an
attempt by a single occupational group — the manual workers —
to rule the country."
Political Issues and Administration. Mr. Drury had his own
ideas about other matters, and one was the question of Unem-
ployment, which came up in the Legislature on Feb. 7: "The
problem has given the Government serious concern. There are
some who think the Government has nothing to do but create
work. That is not true. The credit of Ontario is not unlimited.
Two millions per month is being spent on the Chippawa scheme
alone — a very considerable expenditure — which is helping a
large number of men. I am convinced, however, that with all
the work the Government might plan it,could not do enough to
wipe out the unemployment situation, x x x There is no
unemployment in rural districts, though farmers are getting less
for their products. If prices of other products were cut in half
there would be no unemployment in other lines of industry
either." He was in favour of the Referendum and the request to
Ottawa to abolish the right of importation into the Province.
To the Toronto Referendum Committee (Feb. 10) he stated that
there had been a persistent attempt to discredit the law, and
there was a feeling of discouragement which had been assidu-
ously cultivated by enemies in order to weaken the morale of
the Temperance forces : "We recognize at the present time we
have a trade in liquor within the law, but constantly threaten-
ing to be without the law — a trade most difficult to regulate and
control."
At Barrie, on Apr. 10, the Premier spoke on this subject in
three local Methodist churches, and expressed some strong
opinions as to the coming vote : "If you favour law and order as
against a condition of anarchy, in respect to the Ontario Tem-
perance Act, and are in favour of putting an end to this outlaw
traffic, vote for the doing away with importation of liquor. This
vote is not on Government control, but a vote between law-
breaking and law-abiding people." On June 9 Mr. Premier
Drury shared with Mr. Premier Taschereau of Quebec the com-
pliment of receiving an Hon. LL.D. degree from the University
of Toronto — the second honour of this kind within six months.
He was at Richmond Hill on June 10, and addressed a U. F. O.
gathering, with a strong protest against Dominion policy in the
Lake of the Woods matter and with a notable reference to the
Morrision-U. F. O. situation.
18
530 THE CANADIAN ANNUAL REVIEW
Claiming to be one of the pioneers of the Farmers' move-
ment, Mr. Drury declared that the political end of the U. F. O.
was to see that citizens were clear-thinking and well-informed
on matters of public moment, and did not vote with machine-
like regularity for one particular party or another : "That is
why the movement should be an expression of the opinion of
all classes, and not only of farmers. We must get away from
blind party loyalty. We, for instance, want the loyal support
of those of our people out in the country, but only so long as
we merit it. We want intelligent support — not blind factional
support." In the middle of the year (June 18), after the Premier
had been guiding the public affairs of the Province for more
than a year and a half, the Toronto Star (Lib.) paid him this
tribute : "Mr. Drury has been in the position of Prime Minister
of Ontario for a length of time sufficient to establish the fact
that he has a remarkable capacity for the work of government."
During this period "he has demonstrated that he possesses to
a rare degree the combination of qualities requisite to success
in the realm of politics. Mr. Drury's mind goes unerringly and
with almost uncanny quickness to the heart of a problem. He
thinks clearly and expresses his views lucidly."
Speaking at Dufferin County picnic, on June 23, the Premier
handled the Hydro-Radial proposals without gloves. He did
not want a repetition of the Chippawa Canal affair, which
started out as a 10-million dollar expense, was raised to 20 mil-
lion, had now a record of 45 million spent on it and would re-
quire another 10 millions to bring it to completion: "The
Hydro-Radial scheme presents itself as a 50-million dollar pro-
posal. If it increases in the same way as the Chippawa Canal,
the Province would soon be bankrupt." At Windham Centre
(July 1) he defended the Government's expenditures as wise,
the increase of $5,000,000 in the year as necessary, the revenue
as growing equally with the expenses. Labour matters came
up for continuous discussion during the year. Mr. Drury did
not believe in wholesale Government aid to meet unemployment
conditions, but was ready to discuss practical and helpful steps.
On July 20, when representatives of practically every group of
industries in the Province conferred with the Premier, and the
members of his Cabinet, for a solution of the problem, he pro-
posed that a Committee be appointed, as a sort of investigating
and advisory body, with representatives of all the interests con-
cerned. On Aug. 12 the Committee was constituted as follows :
Agriculture, W. C. Good, Paris ; Finance, D. A. Cameron of the
Bankers' Association ; Soldiers, W. E. Turley, of the G.W.V.A. ;
Labour, John Doggett, of the Building Trades Council ; Mer-
chantile, C. E. Marriott, Toronto Board of Trade; Builders'
Exchange, George Gander ; Retail Merchants', R. F. Fitzpatrick ;
Canadian Manufacturers' Association, J. E. Walsh, General
Manager. Later on, this Committee issued a series of adver-
tisements in the press, which were published under the Govern-
THE DRURY GOVERNMENT AND POLICY IN ONTARIO 531
merit's authority, and which offered advice and suggestions of
more or less value.
The Labour forces, meanwhile, had stood by Mr. Drury in
the Legislature, and, on Aug. 16, the Premier told the Railway
Carmen Convention that the Farmer-Labour Coalition in On-
tario was stronger than when it was formed : "It is proceeding
along reasonable, sane and advanced lines, and is able to give to
the Province something of progressive legislation and to serve
the needs of the citizens." At the same time, he urged them to
remember that : "The man who can be loyal to a class has made
a decided advance over the man who is loyal only to himself;
but that man, in any organization, or any class, will fall short
if he forgets, in striving after the interests of his own class, the
larger interests of the community." During the past two years
his Government had put through much legislation: "Some of
it has been termed distinctly Labour legislation, and yet nothing
that has been put through has benefitted either the Labour
class or the Farmer class at the expense of any other class of
the community."
In this connection the Hon. W. R. Rollo, Minister of Labour,
issued, during the year, the 1st annual Report of his Depart-
ment. It dealt with 1920 events and the administration of the
Stationary and Hoisting Engineers' Act, the Factory Shop and
Office Building Act, the Employment Agencies' Act, the Steam
Boiler Act, and the work of the Ontario Offices of the Employ-
ment Service of Canada. To these latter Bureaux (numbering
34) there applied during the 12 months ending Oct. 31, 1920,
175,925 men and women seeking employment, while employers
asked for 172,767 persons during the same period, and con-
firmation of placement was received in the case of 110,485 men
and 8,250 women; these figures did not include casual place-
ments of 17,117.
The Minimum Wage Board, created in 1920, did good work
in that and the succeeding year. Its objects were explained at
a Toronto dinner on Feb. 18 by its Chairman, Prof. J. W. Mac-
millan: "The value of human life applied to business is the
underlying principle of Minimum Wage legislation. To sum it
up, concisely, the employers are asked to give their employees,
in return for their labour, means to provide enough to eat,
enough for clothing, and enough to allow of proper recreation.
A Minimum Wage Board is not authorized to fix wages, it only
fixes the line below which wages cannot go and which is controll-
ed by the demands of a decent living." The speaker explained
that all women in the Province, working in any but agricultural
or domestic occupations, were under the Board's jurisdiction.
Its other members were R. A. Stapells, Mrs. H. W. Parsons,
H. G. Fester, and Miss Margaret Stevens — the two latter repre-
senting Labour. During 1921 a number of occupations were
investigated and dealt with.
532 THE CANADIAN ANNUAL REVIEW
On Mch. 4 the Board announced that, as a result of recent
enquiry into the wages paid women-workers in laundries, dye-
works and dye-cleaning establishments in Toronto, the Mini-
mum Wage in future for experienced hands would be $12.00
weekly, and for inexperienced workers of 18 years of age or
over it would be $10.00 a week for the first three months and
$11.00 a week for the 2nd three months. Young girls under 18
years of age were to receive at least $9.00 a week for the 1st
six months, $10.00 a week for the 2nd six months, and $11.00 a
week for the 3rd six months. The next matter dealt with was
that of wages for female employees of confectionery and paper-
box industries and female retail clerks ; the decision finally
reached stipulated a $12.50 per week Minimum Wage for ex-
perienced Toronto adult female employees in all these cases.
For inexperienced female employees the minimum was as fol-
lows: 1st six months, $10.00 per week; 2nd six months, $11.00;
young girls, 1st six months $8.00 per week, 2nd six months, $9.00
per week ; 3rd six months, $10.00 per week.
In October orders were issued as to female factory workers
(1) in cities with population of 50,000 or over (Toronto specific-
ally excepted) and (2) in centres with populations below the
50,000 mark. The rates ran very much as above, with $11.50 as
the Minimum for all experienced employees over 18 years of
age. Inexperienced rates were as follows, with the amount in
brackets applying to cities of over $50,000: Inexperienced
Adults, not less, per week, than $9.50 ($9.00) for the 1st six
months, and $10.50 ($10.00) for the 2nd six months; Young
girls, not less, per week, than $8.00 ($7.00) for the 1st six
months, $9.00 ($8.50) for the 2nd, and $10.00 ($10.00) for the
3rd six months. These orders were subject to slight variations,
but they afford a general idea of the Board's policy.
The first (1921) Report of the Minimum Wage Board stated
that during its 10 months 102 meetings had been held, and that
its first tasks were largely exploratory with rules for guidance
necessary and few statistics of value available. The statement
was made that: "The Board, though composed of members
drawn from widely different classes of the community, and
possessing greatly divergent interests, has been able to act in
constant harmony. During the whole period of its activity, it
has not once divided upon any question representing the usual
contentions between capital and labour." The work already
mentioned was reviewed at length, and figures as to cost of
living for individual workers and families were elaborated;
questions as to operation of the Orders, and enforcement of
regulations, problems as to hours and reduction of wages, co-
ordination with other Provinces, were discussed.
The Workmen's Compensation Board — Samuel Price,
(Chairman), George A. Kingston, Commissioner, and N. B.
Wormuth, Secretary— reported for 1920 that $7,780,145 was the
total of benefits awarded in the year, compared with $4,192,859
THE DRURY GOVERNMENT AND POLICY IN ONTARIO 533
in 1919; that the total number of accidents was 54,851, as
against 44,260 in 1919. The average rate of assessment, for all
Industries, paid by employers in Ontario each year since the
commencement of the Act was stated as follows: 1915, $1.27;
1916, $1.09; 1917, $0.99; 1918, $1.09; 1919, $1.22; 1920, $1.25.
Of the Assessments collected in Ontario during 1920 only 1-53
per cent, went toward expenses. During 1921 the Government
was urged to appoint a Labour member of the Board in place
of the late Alex. Wright ; a Deputation of the Dominion Trades
and Labour Congress waited upon the Premier in August and
urged action; on Oct. 15 the appointment of H. J. Halford, of
Hamilton, Vice-President of the Trades Congress, was announc-
ed. It may be added that in April Capt. C. W. E. Meath was ap-
pointed Superintendent of the Ontario Government Employ-
ment Bureaux.
The Provincial Secretary, Hon. H. C. Nixon, had a Depart-
ment replete with business of a statistical kind and with ad-
ministrative details which touched human nature in many
special aspects. To him the Bureau of Municipal Affairs report-
ed as to Municipal statistics of the Province, and J. A. Ellis,
Director, was up-to-date with his figures for 1921, showing
organized municipalities in the Province as 911 in number, of
which 557 were townships, 149 villages, 143 towns, 24 cities, and
38 counties; the rural population was 1,031,054, the urban total
540,538, and the city population 1,166,815. Other data for 1920
showed a rural assessment of $731,404,122, urban $291,190,837,
city $1,203,216,900; municipal taxes totalling $12,381,628 rural,
$7,108,828 urban, and $28,905,514 city; school taxes totalling,
respectively, $6,911,230, $4,108,815 and $12,856,938; a Debenture
Debt of $13,086,312 rural, $37,328,734 urban, and $210,469,968
city. The Taxable real property was given as follows :
Land Buildings Exemptions;
Rural . ,.. $ 518,225,901 $200,874,000 $ 65,508,257
Urban 83,447,988 167,098,018 44,333,917
Cities. 515,032,487 497,710,582 204,144,234
Total $1,116,706,376 $865,682,600 $313,986,408
During the year Mr. Nixon made a canvass of Muncipal
Councils for advice on the question of extending the municipal
franchise to a greater number of people. Air. Ellis also sub-
mitted to this Minister an elaborate Report on Housing as de-
veloped during 1921, with 10 cities, 5 towns, 2 villages and one
township coming under the Municipal Housing Act and receiv-
ing Government guarantees for $1,566,000 of debentures and 99
Municipalities passing By-laws and appointing Housing Com-
missions under the Ontario Housing Act. Of the latter 72 had
constructed houses at an estimated decrease of 20 per cent, in
cost from the prices of 1920. The amount secured from the
Dominion for these purposes was $8,750,000, which was to be
loaned to Municipalities at 5 per cent.; in 1919-20-21 the total
so loaned in Ontario was $7,768,018, with $256,343 used in the
534 THE CANADIAN ANNUAL REVIEW
purchase of land; up to the end of 1921 $652,316 had been repaid
in monthly payments to the Provincial Treasurer, $197,143 in
excess of amounts due, and $167,842 for Interest; out of 73
Municipalities only 4 were in arrears.
The 35th Report of the Commissioners for the Queen Vic-
toria Niagara Falls Park— P. W. Ellis (Chairman); G. H.
Wilkes, Brantford; L. Clarke Raymond, K.C., Welland; W. L.
Doran and Dr. H. Y. Grant, Niagara Falls; J. D. Chaplin, St.
Catharines, and Hon. F. C. Biggs, Toronto — was presented to
Mr. Nixon on Apr. 28. It included a history of the organization,
formation and development of the Park and its total of 1,511
acres vested in the Commissioners; a reference to the $200,-
000,000 annual tourist traffic of the Continent, and of which, it
was claimed, at least one-half should be directed to Niagara
Falls, with the additional statement that the tourist traffic of
all Canada did not exceed $15,000,000 a year; the financial state-
ment showing Receipts (1920) of $578,991 and Expenditures of
$174,844 on Capital account and $301,115 on Maintenance ac-
count. The Provincial Municipal Auditor reported to the Pro-
vincial Secretary, as did the Inspector of Prisons and Public
Charities — Alex. MacKay, M.D. The latter dealt with the year
ending Sept. 30, 1920, and 104 Public Hospitals, which included
10 Consumptive Sanatoria and 133,975 patients under treatment
during the year, Provincial grants of $572,130 and a total re-
ceived from other sources of $6,292,034, with subscriptions, do-
nations, etc., of $912,334 and a total expenditure of $8,086,817,
including $1,015,305 on capital account. There were, also, 42
Private hospitals, 40 refuges, 30 orphanages, 3 Convalescent
Homes and 31 County Houses of Refuge.
Of the other Ministers, several are dealt with, separately, in
respect to Agriculture and other important subjects. The Hon.
Beniah Bowman, Minister of Lands and Forests, was greatly
interested in re-afforestation. His policy in New Ontario was to
grant no land to settlers that was not 50 per cent, agricultural ;
he addressed a number of meetings during the year on these sub-
jects. At Napanee, on Feb. 6, he told of the wealth of pine and
pulpwood, and of fertile lands in Temiskaming, which were
already cleared and fit for farming. It cost much, he pointed
out, to build roads in a new, rough land like this, but they must
be built or the country would never be developed. Farther
north, beyond Temiskaming, the pulp industry flourished and
great pulp mills were in operation — the largest of them turning
out 750 tons, or a whole trainload, of pulp each day. Under
Government restrictions the pulpwood cut on Crown lands had
to be converted into pulp or paper before it was exported into
the United States. The Minister pointed out that, in some
parts, timber was wasted if not cut before it died, while in other
sections much was lost through wasteful methods of cutting.
Land was cleared that should never have been cleared, and
great forest fires were allowed to ruin thousands of miles of
valuable timber.
THE DRURY GOVERNMENT AND POLICY IN ONTARIO 535
Great piles of debris left in large areas of standing timber
were ready fuel for the flames : "In order to prevent the further
destruction of our pulp and lumber industries a better system
of fire prevention is being adopted, and a better system of super-
vising tree cutting is being introduced, so that young growths
will come on, and areas will be cut in rotation. Sealers and
check sealers, who are under no obligation to the Lumber com-
panies, will check the cutting as well as the sale of lumber and
pulpwood. Then in every County in Old Ontario the vast areas
of waste land should be made use of. Trees must be planted
where nothing is now growing, so that the generations of to-
morrow will have lumber and forests." The Minister's Report
for 1921 was not available at time of writing (June 27, 1922),
but his 1920 Report showed 72,591 acres of Crown Lands sold
for $69,956, with 10,688 acres leased for $2,155; the issue of
Crown patents for Free grant lands totalling 53,295 acres; a
revenue of $2,911,047 and disbursements of $1,624,805; a report
as to Forest fires originating from Railways, which showed 49-5
per cent, in 1917 and 23 9 per cent, in 1920.
There were several other Provincial Government Commis-
sions. The Temiskaming and Northern Ontario Railway Com-
mission had a very favourable Report for the year of Oct. 31,
1920, with gross Revenues of $4,187,573, as compared with $3,-
207,708 in 1919— an increase of nearly a million dollars; Ex-
penditures on way and track maintenance were $813,763, as
compared with $718,431 in 1919; rolling stock maintenance cost
$770,620, as against $594,401. Early in January the appointment
of George W. Lee, as Chairman, was announced, in succession to
J. L. Englehart, who passed away a few months later leaving
this Government Line as his monument. The Government was
urged, at this time, to extend the T. & N. O. by a branch line
across the mineral region between Sudbury and Porcupine, and
a large Delegation pressed the proposal on the Ministers on Mch.
18; the plan was for a 90-mile Railway serving the areas of
Metatchewan, Gowganda and West Shining Tree. Action of
some kind was promised. On June 21, the Commission was re-
organized by the Government with the appointment of Col.
John I. McLaren, of Hamilton, and Lt.-Col. L. T. Martin, of
Ottawa, to the vacant positions on the Board.
A trip of inspection through Northern Ontario by the Com-
missioners followed, with a recommendation to the Govern-
ment to place on sale, through the municipalities of the North,
the entire number of lots, between six and seven thousand, which
the Commission held outside of its right of way. As Govern-
ment property, these were not assessable, and there had been a
series of protests from the municipalities in which they were
located. An immediate extension of the T. & N. O. was an-
nounced on Sept. 9, by Mr. Premier Drury, along a 70-mile right-
of-way northward out of Cochrane to Smoky Falls, with esti-
mated costs of $3,500,000. The Commission, on Dec. 12, an-
536 THE CANADIAN ANNUAL REVIEW
nounced the conclusion that electrification of the Railway was
an economically and commercially sound proposition, and
worthy of close investigation, and that a complete enquiry would
be made into the matter. For the year ending Oct. 31, 1921, the
gross earnings of the Railway were $4,680,615, while the gross
expenditures were $4,498,836. Of the earnings $3,047,925 was
from freight, while the passenger earnings amounted to $1,-
223,387 and express earnings were $150,072. The bulk of the
expenditure was on transportation, which cost $2,223,213.
The Commission relating to and administering the Mothers'
Allowance Act feported for the year ending Oct. 31, 1921, an
expenditure of $774,667, with 2,670 families benefitting under
the Act. The 3rd annual Report of J. M. McCutcheon, Civil
Service Commissioner, dealt with the new standardization of
salaries as having been beneficial, the Superannuation Act, which
became effective on June 15, the general increase in salaries
given during 1920 on the basis of the new classification, and a
''consistent and resolute application of the merit principle in
making appointments and in determining promotions, transfers
and salary increases." The Public Service Commission, ap-
pointed in 1920, and composed of W. D. Gregory (Chairman),
H. L. Brittain, Norman Sommerville, Albert Hellyer and E. A.
Pocock, did much work during 1921, made elaborate enquiries
and submitted five Interim Reports.
The first of these documents dealt with Coroners and their
duties, and made a series of recommendations. A second re-
ported as to Issuers of Marriage Licenses and advised that the
Clerks of all municipalities and, in unorganized districts, the
Police Magistrates, be given this power; that the legal age of
marriage in the man be raised to 21 years, and that both parties
should appear personally; that power of enquiry under oath be
given to the Issuer of Licenses, and that the Fee be placed at
$5.00, of which $4.00 should go to the Government. A third
treated of Police Magistrates, and recommended that the work
be performed by men specially qualified and giving their whole
time to the business ; that payment by fees be abolished, and
that salaries of District Police Magistrates be fixed by the Gov-
ernment with one-half paid by the Province and one-half by
the Municipalities ; that the name be changed to Provincial or
District Magistrates, and that they be not members of Police
Commissions.
A fourth dealt with Sheriffs — their history, position, func-
tions and duties. A majority of the Commission (Messrs.
Gregory, Britain and Pocock) described the position of Sheriff
as "a dying office," and added : "The Sheriffs appear to be well
paid for what they do, but they have so little to do that they
cannot earn a living income. Many of those who receive Gov-
ernment grants are overpaid for the comparatively little work
that they perform. No business could exist if it had to pay so
many officials for such a limited amount of work." The Com-
THE DRURY GOVERNMENT AND POLICY IN ONTARIO 537
missioners reported a list of 48 officers in this position, and the
majority recommended that the offices of Sheriff and Gaoler be
combined, in some cases, and in others that of Sheriff and High
Constable ; deprecated any comparison with or similarity to the
English office of High Sheriff; criticized the wearing of uni-
forms in Court, and advised a Provincial salary of $1,800 to
$2,500 with a yearly saving of about $215,000. Other and lesser
recommendations were made. The Minority Report (Messrs.
Sommerville and Hellyer) objected to any merging of the offices
of Sheriff and High Constable or Gaoler.
An elaborate Report on the Toronto Police Court — from
which Colonel G. T. Denison had lately retired after 44 years'
service as Police Magistrate — described it as the largest in On-
tario, with 30,170 cases tried in 1919 and 36,804 cases in 1920--
5,502 of the 1919 cases being indictabfe offences and 4,800 in
1920; the fines and costs collected in 1917 were stated as $20,656,
and, in 1920, $230,352. There was severe criticism of over-
crowding in the Court room, of over-lapping in the cases tried
by the 4 Magistrates and as to undue haste. A great many
recommendations were made, including the need of a new
building with a court-room for each Magistrate ; reasonable
salaries for good men in these positions and better accommoda-
tion for Prisoners ; special and separate treatment for the Insane
and appointment of Probation officers ; the establishment of one
Central Criminal Court for the County and City.
An important Report of the year was that of the Legislative
Committee on Proportional Representation, of which Hamnett
P. Hill was Chairman. It was really a series of reports, includ-
ing those of the majority and minority members, together with
documents giving the experience of other countries and special
statements for and against the policy. The Majority of the
Committee recommended that the proposed system be tried in
Ontario at the next Election, and made the following sugges-
tions: (1) That the Cities of Ottawa and Hamilton be each al-
lowed two members, to be elected by those cities as a whole
under the single transferable vote system of Proportional Rep-
resentation, or, in the alternative, that the members from the
City of Toronto be elected by this system ; (2) that the present
constituencies of Carleton, North and South Lanark, Leeds,
Grenville and Brockville, together elect six members under Pro-
portional Representation; (3) that the constituencies of North
and South Brant, North and South Waterloo, and North and
South Oxford, together elect six members under the same sys-
tem ; (4) that the rest of the Province select their members in
what is known as single-member constituencies, but that the
transferable vote be used in the election of such members; (5)
that municipalities be permitted to elect their Councils by means
of the single transferable vote system; (6) that legislation be
forthwith enacted carrying into effect the above recommenda-
tions.
538 THE CANADIAN ANNUAL REVIEW
The Minority member (Lieut.-Col. W. H. Price) opposed
these recommendations and declared (1) that Proportional Rep-
resentation and representation by population were very different
things and not understood by many people, who confused one
with the other; (2) that in a new country like Canada, where
so many people of different races and languages had their new
home, efforts should be made to assimilate and merge them into
Canadians, rather than to segregate them into separate com-
munities with special representation; (3) that Proportional
Representation would bring many candidates into the field, di-
viding up the vote on non-essentials and electing representa-
tives of minorities who did not have behind them popular ap-
proval for their fads and fancies, and that a minority could, by
using the balance of power, frequently dictate to a majority;
(4) that Proportional Representation promoted weak groups or
minority groups, with log-rolling and compromise, which would
mean frequent changes of Government with changes of
policy — made without going to the people for approval; (5)
that instability of government in a new country like Ontario,
which depended upon stable Government policy for develop-
ment, would be disastrous in its results; (6) that the British
system worked well because majorities, consistent with the sta-
bility of the country, treated minorities well.
The Winnipeg experience in 1920 was cited as a successful
illustration; the experience of Canada, as a whole, in recent
elections, and also of the United Kingdom, was said to prove
the non-representative nature of single-member seats. The
opponents of the policy urged that the system was unintellig-
ible and complicated, and that it took a wearisome time to de-
termine the victors ; that under this system in Winnipeg the
ballots were counted 30 times or more, and almost a week
elapsed before the result was definitely known, while in one
election in Tasmania it was found necessary to count the ballots
more than 100 times. It may be added that Proportional Repre-
sentation was asked for the City of Ottawa in Municipal elec-
tions, practised by the Cities of Winnipeg, Vancouver, Calgary
and Victoria ; permitted for municipalities by the Legislatures of
Alberta, British Columbia, Saskatchewan and Manitoba ; en-
dorsed as a policy by the Trades and Labour Congress of Can-
ada, the G. W. V. A., the Independent Labour Party, the Cana-
dian Council of Agriculture, the Social Service Council of Mani-
toba, the Ontario Liberal Convention of 1919, the U. F. O.,
Ottawa Board of Trade, Ottawa Teachers5 Institute.
Finances and the 2nd Budget of the Hon. Peter Smith. The
Provincial Treasurer, Hon. Peter Smith, had an arduous task in
financing the ever-increasing requirements of the Province.
His first Budget speech in 1920 had been practically a statement
of conditions as they were upon assuming office ; in his second
speech of this nature, on Feb. 15, he presented figures and con-
THE DRURY GOVERNMENT AND POLICY IN ONTARIO 539
elusions which were those of his own administration. Mr.
Smith first specified certain changes in the Public Accounts in-
volving simplification and clearness of statement; stated the
Ordinary Receipts of the year ending Oct. 31, 1920, as $25,078,-
094 and the Ordinary Expenditure as $25,880,843 ; expressed him-
self proud of this deficit of $802,748 as being much smaller than
was expected and as absolutely necessary: specified the Capital
Receipts as $55,834,979 and the Capital Expenditures as $56,-
963,946. The Financial statement showed cash on hand, Oct.
31, 1919, as $7,603,110 and on Oct. 31, 1920, as $5,671,393;' the
total sum involved was the very large one of $88,516,183.
He claimed that if the Statement had been prepared along
the lines of the late Administration there would have been a
Surplus, because $903,422 of receipts from Lands and Forests
had been placed under Capital account instead of in Ordinary
revenue. Had other items, similarly treated in his Budget, been
included in Ordinary receipts, his surplus would, he declared,
have been $875,198. The Expenditures were described as ab-
normal, and the Treasurer included under this head $608,960 of
Election expenses incurred in 1920, $400,000 for the University
of Toronto, $460,000 paid into the Teachers' and Inspectors'
Superannuation Fund, $460,588 expended upon increased Civil
Service salaries, increased payments for Schools and Education
of over $900,000, special and heavy grants to Universities of
$400,000, an increase of $133,119 in the grants to Public institu-
tions and additional expenses in the Department of Health. The
Capital expenditures included payment of Loans maturing and
Treasury Bills totalling $24,421,237, $1,650,895 to the Teachers'
Spperannuation Fund, $18,000,000 for Hydro-Electric purposes,
and $6.600,000 for Highway improvements ; there was, also,
$910,000 for Public buildings, $989,000 for Northern Ontario
Development, $655,000 for Education and $211,000 for Soldiers'
Land Settlement, with other minor items.
Mr. Smith concluded by saying: "We are in the money
markets continually for money and will be until the Hydro de-
velopments are completed ; we are pleased to put all our state-
ments before the House. We have nothing to hide. We are
only too anxious to give you all the fullest information, and all
we ask in return is just such criticism as you think fair." He
frankly admitted taking advice as to Loans and financial matters
in general — the very best he could get. The Estimates for 1921
were $25,683,878 in Receipts and $20,880,202 in Expenditures,
with $1,241,850 additional on Capital account. The actual Re-
ceipts for the year of Oct. 31, 1921, as shown in the Public Ac-
counts issued many months later, were $29,261,477, or $4,000,000
above the estimate ; the actual Expenditures were $28,579,687, or
nearly $8,000,000 above the estimate ; the cash on hand, Oct. 31,
1921, was $18,784,466, or $13,000,000 above the balance a year
before. The Capital and Extraordinary Receipts were $6,364,-
979, and the similar Expenditure $63,949,409.
540
THE CANADIAN ANNUAL REVIEW
The principal Receipts of 1921* were $2,396,378 from
Dominion Subsidies and grant; $2,885,829 from Lands and
Forests with $1,149,918 additional on Capital account; $2,530,951
from Fees of various kinds and $2,945,360 from Motor Vehicles ;
$69,948 from Highways Department and $2,295,927 from High-
ways on Capital account; $4,727,657 from Succession Duties
and from Taxes on Corporations $3,099,469; from Hydro-Elec-
tric Commission (Interest) $4,463,345 with $1,719,472 Refund
on Capital account. The total of Receipts from Loans in the
year was $70,015,712; the chief Capital expenditure was an ad-
vance of $39,237,288 to Hydro Commission, with $18,259,381 for
various Statutory purposes. The Assets of the Province were
stated at $213,601,479, including $12,040,000 as a Special deposit
in Banks, $23,599,492 as cost of T. & N. p. Railway, $91,672,274
advanced to the Hydro-Electric Commission, $11,048,712 for pur-
chase of Central Ontario Electric System, $25,383,975 as current
values of Government Buildings and Land and on Highway Im-
provements. The Treasurer carried forward the previous Gov-
ernment's estimate of Provincial Resources, which were de-
scribed as Assets:
Pine Timber $132,000,000
Pulpwood Timber, Ties, Poles, Hardwood, etc 225,000,000
Mining Lands and Profits 100,000,000
Agricultural Lands 15,000,000
Water Powers 20,000,000
Sand, Gravel, etc 1,000,000
District of Patricia, (area of 146,000 miles) Timber, Fisheries, Furs
and Mining Possibilities 10,000,000
Taxable property in Ontario, actually assessed by Municipalities, $2,000,000,000
The Direct Liabilities of the Province were $204,959,690—
chiefly Government bond issues, with $16,000,000 in Treasury
Bills ; the Indirect Liabilities were stated at $36,882,468, includ-
ing Guarantee on Canadian Northern Ontario Railway Stock of
$7,860,000 and $25,500,000 of Guarantee on Hydro-Electric Power
Commission bonds. Returning to Mr. Smith's 1921 Budget, it
may be added that the Treasurer's policy included the following
Taxation changes : A two-mill tax on all real estate transfers ;
one-quarter of one per cent, tax on all Bank reserve funds ; ex-
tension of Amusement tax to billiard parlours and pool-rooms ;
Railway taxation increase from $25 to $40 per mile ; increased
taxes under Mining Tax Act. These, Mr. Smith estimated,
would bring in $1,500,000 additional revenue.
There was some criticism of the Budget. The Mail and Em-
pire (Cons.) deprecated a jump of $30,000,000 in the Direct Lia-
bilities of the Province; The Globe (Lib.) deprecated the "free
spending" of the Progressive Government and urged retrench-
ment and economy ; W. E. N. Sinclair, the Liberal spokesman in
the House, criticized Mr. Smith for an alleged contrast between
his administration of the finances and the pre-election economy
platform of the Farmers. He also denounced the low rates at
which Bonds had been sold, and claimed that they should have
*Note.— From Public Accounts for 1921, issued in 1922.
THE DRURY GOVERNMENT AND POLICY IN ONTARIO 541
been disposed of by public tender; as it was, immediately they
were in the hands of the brokers, values appreciated very ma-
terially. As to the Government's contention regarding Rural
depopulation, he declared that it was due in no small part to
the wider use of labour-saving machinery; to emigration to
Western Canada, and a declining birth-rate ; to a desire on the
part of farm children for higher education. Charles McCrea
(Cons.), on Feb. 16, analyzed the increased Expenditures for
the past year as working out at $100,000 per diem. The
Treasurer's message, he said, was a message of debt, liability
and further taxation, and it contrasted greatly with the pre-
election "economy pleas" of the Farmer-candidates. He claim-
ed that items totalling $800,000 were wrongly charged to Capital
account and that the actual deficit was $1,700,000. The debate
continued until Mch. 10, when H. H. Dewart, the Liberal leader,
moved the following vote of censure on the Government :
That this House condemns the extravagant expenditure of the
Government involving, despite an increased revenue for ordinary re-
ceipts of $5,173,322 for the last fiscal year, a deficit of $812,848, and fur-
ther deplores the imprudent borrowing of large sums at excessive
prices, for long terms, notably the Loans of $16,000,000 in December,
1920, and $10,000,000 in February, 1921, without any vote of this House
appropriating the same to particular works or purposes — the last Loan,
while the House was in Session, contrary to constitutional usage and
the right of the people through their representatives in the Legislative
Assembly to control and direct the expenditures of public moneys.
Mr. Dewart made an able speech, which dealt exhaustively
with the Budget from a standpoint of keen hostility. He claim-
ed, especially, that the Government bonds were sold too low
and opposed the transfer tax and mining tax additions. Hon.
Howard Ferguson, the Conservative leader, congratulated Mr.
Dewart upon his address, and declared that the $400,000 re-
ceived from the sale of the Orpington Hospital in England
should have gone into Capital receipts and not Ordinary ones.
He spoke of the doubling of expenditure, of the piling up of
Debt, which now amounted to $15 per head of the population,
and of the lack of any provision for reduction of the burden ; he
condemned Mr. Smith's financing, and claimed he had gone into
the money market when conditions were at their worst : "But,
if he had to have money, then ordinary prudence would have
suggested a short-term loan instead of loans for 15 years to
come. When money goes back to five per cent, that Loan (at
6%) will be selling at 110, and that means a loss to the Province
of $17.00 on every $100, since the Loan was issued at 92 and a
fraction." His attack upon the Treasurer and the Government
concluded as follows : "In the one year in which this Govern-
ment has been in power, they have bedevilled the finances ; they
have parted with more of the public domain than was ever sold
in any single year in the last five or six years ; they have enorm-
ously increased the Public Debt for future generations to pay,
and they have thrown entirely to the winds any recollection of
542
THE CANADIAN ANNUAL REVIEW
pre-election pledges." The Hon. Mr. Drury replied for the Gov-
ernment and defended its efforts and expenditures as necessary,
as wise, and as fruitful of good results :
When we were called to office two weeks after the fiscal year, 1919,
had commenced, we had, of course, to assume the financial obligations
and the commitments of our predecessors. During the year 1919 they had
increased the Public Debt by nearly $22,000,000. They had had a deficit
on the year's transactions of $1,559,802 and they had collected a direct
war tax of $2,085,000, which they had abolished. They also left a legacy
of unpaid debts incurred, during the previous year, of $608,000 for the
general election, and we had to assume an obligation of $460,000 to the
Teachers' Superannuation Fund which had been ignored by the retiring
Administration. In addition to this the cost of everything reached the
highest peak in 1920. We had to pay about 15 per cent, more for all
supplies than was paid in 1919, and the cost of living rose in the same
proportion to all the employees of the Government. Let us examine the
causes which brought about the increase in the expenditure last year.
First of all, there were certain increases beyond our control, and these
amounted to $2,016,492. These uncontrollable increases were as follows :
Increased cost of carrying the Debt incurred in 1919 $ 946,944
General Election accounts left over 608,960
Debt to Teachers Superannuation Fund, assumed 460,588
Total $2,016,492
These three items account for nearly half of the increased expendi-
ture. Two other items of increased expenditure which are worthy of
special attention account, practically, for the balance of the increase :
Education $1,610,058
Maintenance of Public Institutions 705,146
Total $2,315,204
The Dewart amendment was rejected, on division, and the
Budget debate ended. During the year there was a succession
of Provincial Loans, which included the following: 1st Feb.
$10,000,000, 6 per cent., 20-year bonds; 2nd Mch. $15,OOU,000, 6
per cent. 15-year bonds; 15 Sept., $15,000,000, 6 per cent., 22-
year bonds. One of $5,000,000, 6 per cent. 17-year bonds 15
Nov., 1920, and another of $16,000,000, 6 per cent., 15-year bonds
of 1st Dec., 1920, were also included in the fiscal year.
Political and Other Incidents of 1921. H. Hartley Dewart,
K.C., as Leader of the Liberals in the Legislature, had ex-
perienced many difficulties since his election to that post in 1919;
some of them were personal, some political. He had never
favoured Prohibition, and he was leader at a time when no other
policy seemed admissable to the public mind even for discussion ;
he liked bold, aggressive political warfare, and the tendency of
the moment was to find elements of co-operation with the
Farmers' party rather than antagonism ; he was not altogether
favourable to Public ownership principles, and elements in his
own party were openly opposed to his leadership. On July 28
a joint meeting of the Executive of the General Reform Associa-
tion and the Ontario Liberal Executive was held in Toronto, and
it was decided that the Liberals of the Province be re-organized
THE DRURY GOVERNMENT AND POLICY IN ONTARIO 543
under the name of the Ontario Liberal Association. Hon. Mac-
kenzie King and H. H. Dewart were present.
On Aug. 30 the Toronto Globe declared itself opposed to Mr.
Dewart as Leader : "In sheer intellectual power Mr. Dewart is
unquestionably the ablest man in the present House of As-
sembly. But ability and availability are entirely different
things, xxx Prohibition enforcement and the safeguard-
ing and extension of the Public ownership principle are the out-
standing features of Provincial politics at the present time, and
it is unfortunate that Mr. Dewart does not give clear, unhesitat-
ing leadership in regard to either of them." A meeting of the
Ontario Liberal Executive was held on Oct. 18, with A. C.
Hardy of Brockville presiding, and arrangements were made for
the current Federal elections, with the Provincial leadership
also discussed ; on the same day a Caucus of the Liberal mem-
bers of the Legislature met to discuss with Mr. Dewart a recent
letter in which he intimated the possible necessity of retiring
for reasons of ill-health.
He was not present at the meeting, but a second letter was
read, in which he said : "I appreciate very much the loyalty with
which the majority of those who were elected as Liberals sup-
ported me in expounding the policy of the party, which you
know I did, whether at all times it was in accord with my own
personal views or not. But I must confess that I keenly felt the
open attacks and the more veiled but equally appreciable dis-
loyalty of others. I am fully conscious of my faults and of just
causes of criticism, but I did not lay myself open to attack for
any lack of adherence to and enunciation of sound Liberal prin-
ciples. I have especially felt the failure of legitimate financial
support, and a burden that was thrown upon me as Leader that
I should not have had to bear." The letter concluded with a
vigorous attack upon Mr. Drury and the Agrarians and Mr.
Meighen and the Conservatives. The resignation was accepted,
and a Resolution passed expressing sympathy with the late
Leader in his illness and deep appreciation of the services he
had rendered to the party. It was announced that Francis
Wellington Hay, Chief Liberal Whip, and a popular member of
the House since 1914, would act, temporarily, as Leader in the
Legislature.
Meantime, the Conservatives under G. Howard Ferguson,
K.C., had been putting up an active fight in the Legislature but,
while the personal popularity of their leader was an asset, they
were somewhat hampered by the defensive policy necessary,
at times, in respect to the Timber Commission Enquiry and the
fact of Mr. Ferguson having been Minister of Lands and Forests
in the period under investigation. Mr. Ferguson, however, held
his own with vigour ; on May 16, at Ottawa, he made a fighting
speech typical of others delivered from time to time. In it he
denounced the Drury Government as "a hyphenated, hybrid
organization" without a chance of future electoral success in
544 THE CANADIAN ANNUAL REVIEW
the Province ; described the Timber investigation and Commis-
sion as a "nefarious, scandalous, outrageous attempt to dis-
qualify a public man"; declared that, in alliance with the Inde-
pendent Labour Party, the U. F. O. had been forced to make
compromise after compromise in order to carry on the Govern-
ment at all.
He added that: "The legislation initiated by the Group is
nothing but hash ; the Premier, himself, is a man of high prin-
ciples, but he is a visionary idealist and when he tries to crystal-
ize these ideals into legislation he finds it a practical impossi-
bility. In the matter of Capital expenditure, the U. F. O. has
spent $83,000,000 during 1920, while, during Conservative rule
in the two years from 1918 to 1920, only $79,000,000 was spent ;
25 to 30 per cent, has been added to the cost of every Govern-
ment Department." H. P. Hill, M.L.A., followed and expressed
unshakable confidence in Mr. Ferguson as a man, as a debater,
as a fighter, and as a leader ; his work during the recent Session
had stamped him as "one of the greatest Provincial politicians
in Canada." On Sept. 16 the Ontario Conservative Association
met in Toronto, with J. E. Thompson, M.L.A., in the chair, organ-
ized for the Federal Elections and expressed renewed confidence
in Mr. Ferguson.
An event of this period was the death of His Honour Lionel
Herbert Clarke, Lieut.-Governor of the Province, on Aug. 29.
Mr. Clarke had been President of the Toronto Board of Trade
and Chairman of the Toronto Harbour Commission prior to his
appointment on Nov. 27, 1919; he was a respected and popular
citizen and highly regarded in this new and responsible position.
The public funeral on the 31st was one of the largest and most
representative tributes of respect ever accorded in Toronto to a
public man. The selection of a successor was more debated than
usual. The Farmers' Sun (Sept. 10) urged the appointment of
a farmer, and pointed the proposal by reference to the Hon.
LL.D. lately given to Seager Wheeler, the Western grain-
grower. The Ottawa Government on Sept. 11 announced the ap-
pointment of Lieut.-Col. Henry Cockshutt of Brantford, well-
known as a past President of the Canadian Manufacturers' As-
sociation and President of the Cockshutt Plow Co., the Adams
Waggon Co., and the Brantford Carriage Co. ; as, also, a financier
and Director of the Bank of Montreal and other institutions. He
was President of the Brantford Recruiting League from 1914
and in 1916 had raised the second local Battalion for Overseas
service but resigned command on finding that lack of training
would prevent his going further than England. The Farmers'
Sun at once came out with an editorial (Sept. 21) urging the
abolition of Government House as being a waste of money and
"out of keeping with the democratic simplicity of the age."
Other incidents of the year included the presentation of
certain charges in Toronto against J. Seymour Corley, K.C., the
lately-resigned Crown Attorney, and the report of Judge Ward,
THE DRURY GOVERNMENT AND POLICY IN ONTARIO 545
Special Commissioner (Oct. 1st) completely exonerating him;
the statement of Arthur Hewitt, President of the Ontario Fire
Protection League, that with a per capita Fire loss greater than
that of any civilized country in the world, Ontario's fire waste
was over $1,000,000 per month; the unveiling at the Parish
Church, Orpington, Kent, of a Memorial Cross presented by the
Ontario Government in honour of 100 Canadians who had died
of wounds at the Orpington (Ontario Government) Hospital
during the War; the publication of the Dominion Census returns
relative to Ontario, which showed a population in 1921 of 2,933,662
and an increase of 406,370 over 1911, with 1,227,809 rural and
1,705,853 urban; the issue of a Report by the Dominion Bureau
of Statistics showing 14,381 industrial establishments in the
Province in 1919 with $1,335,968,699 capital, 89,503 employees,
wages of $229,191,908 and a production of $1,533,738,655.
During the year a large number of King's Counsel
were appointed by the Government on advice of the Attorney-
General and a special Committee composed of Chief Justice
Sir William Meredith, Chief Justice Sir William Mulock and
Dr. John Hoskin, K.C. — appointed at different times to the total
of 225. W. D. Gregory, one of these appointees, in a letter
addressed to the Attorney-General (July 29) rejected the
honour and declared that "no duties are attached to the office
of King's Counsel, and it appears to me that no public interest
requires the making of such appointments," and added: "I
feel strongly that the practice of giving certain barristers
precedence over others in the Courts is undesirable and
out of harmony with the democratic standards that generally
prevail in Canada." During 1921 the retirement of J. Bruce
Macdonald, after 43 years' service with the Provincial Govern-
ment of Ontario, was announced, with those, also, of A. A. Grigg,
Deputy-Minister of Lands and Forests, Lieut.-Col. G. T. Deni-
son, Senior Police Magistrate of Toronto, Dr. G. C. Creelman,
Agent-General for Ontario in London, J. Lonsdale Capreol, K.C.,
for many years Clerk of the Executive Council of Ontario, E. S.
Estlin, Provincial Natural Gas Commissioner. The appointment
of William C. Noxon, manufacturer and financier, and during the
War member of the Canadian Trade Mission in London, as
Agent-General for Ontario in London, was announced on July
1st.
Ontario Government Appointments in 1921
Inspector of Dominion Courts in Ontario W. W. Ellis Toronto
County Crown Attorney for Essex G. A. Urquhart Windsor
Police Magistrate in Lennox and Addingtqn J. Lionel Lloyd , North Brook
Police Magistrate of Wiarton '. John MacCartney Wiarton
Judge of the Juvenile Court for Windsor, Walkerville
and Ford Rev. Canon Arthur Carlisle ..Windsor
County Crown Attorney for Prince Edward Malcolm R. Allison Picton
Local Registrar of Supreme Court Richard H. Hubbs Picton
Clerk of the Executive Council of Ontario Charles F. Buhner Toronto
Sheriff of Parry Sound J. S. E. Armstrong Parry Sound
Senior Magistrate for Toronto J. Herbert Denton, K.C Toronto
Deputy of Minister of Labour J. H. H. Ballantine Toronto
Police Magistrate in Algoma and Sudbury Edward Arthurs Espanola
546
THE CANADIAN ANNUAL REVIEW
Police Magistrate for County of Peel Charles H. Burgess Port Credit
Police Magistrate William J. Clark Pickering
Police Magistrate for County of Dufferin Hugh Falconer Shelburne
Police Magistrate for Cannington
Police Magistrate for County of Dundas
Police Magistrate for City of Petet borough
Police Magistrate for County of Huron
....William Hamilton Uxbtidge
....George C. Hart Winchester
....Oliver A. Langley Peterborough
....Charles A. Reid Goderich
....Walter C. Cain ....Toronto
Deputy Minister of Lands and Forests
Police Magistrate for Sudbury, Algoma and Thunder
Bay Joseph E. Depew Sudbury
Police Magistrate for County of Bruce Alex. E. McNab Walkerton
The Hon. W. E. Raney, K.C., was a conspicuous
Mr. Raney member of the Government during the year ; ag-
a* Attorney gressive and energetic, he made enemies and was
Ontario- ° quite aware of it ; he won popular support as well
Questions of as disapproval and carried through most of his
Prohibition plans. He had charge of the legal business of the
and Race- Government and oversight of its legislation from
Tracks. t^at pOmt of view ; he made the interesting state-
ment in the House on Feb. 21 that since his ap-
pointment as Attorney-General he had had no connection with
any legal firm whatever, and that he hadn't spent an hour on
private business nor drawn one dollar for private services ; he
continued his policy of prosecuting the Canadian Wholesale
Grocers Association and associated concerns as sharing in an
alleged and illegal combine.
The Attorney-General and the O. T. A. The Prohibition
issue was, however, the chief one with which Mr. Raney had to
deal in 1921 ; enforcement of this law was a serious difficulty
and its evasion, at times, a public scandal. The Report of James
Hales, Chairman of the Board of License Commissioners, as to
the operation of the O. T. A. in 1921, stated that, in the fiscal
year ending Apr. 30, there were 36 convictions of Hotel licensees
and 4,412 of non-licensees ; in the preceding year the figures were
23 and 2,763 respectively. The revenue from fines was $811,087,
compared with $273,647 in 1919-20; the expenses were $253,357
and $144,211 respectively. The confiscated liquor in 1920-21 was
21,486 cases and 2,683 gallons, with 897 cases of beer and 90 bar-
rels. Mr. Hales stated that the committments to gaol for drunk-
enness in 1921 were 4,719, compared with 4,511 in 1920, 3,415 in
1919 and 2,595 in 1918.
The enforcement of the Ontario Temperance Act early de-
veloped allegations of increasing crime and complaints of auto-
cratic action by Department employees. The Toronto Police
Court showed an increase in the number of "drunks" from 4,554
in 1917 to 6,130 in 1920, and of all offences tried as from 25,714 to
36,804 — the population also increasing from 473,829 to 512,812.
Senator Lynch-Staunton at Hamilton (Jan. 25) declared that:
"The Cabinet in Toronto has handed to the Crown absolute con-
trol over you and me and every one of us." Under the Ontario
Temperance Act, he stated, any Magistrate could send a man
PROHIBITION QUESTION; MR. RANEY AND THE RACE-TRACKS 547
to gaol for a year without the right to appeal and without a
trial by jury. Meanwhile, the importation of liquor was carried
on with all kinds of abuses ; "rum-running" was rife, and the
export of liquor in large quantities to the United States con-
tinuous— especially along the Niagara and Essex frontiers; as
an illustration of the efforts made by the Attorney-General's
Department, 750 cases of liquor were seized at Windsor, on Feb.
28, while being unloaded from a train.
In the Legislature, on Feb. 8, Mr. Raney submitted the
Report of the Special Committee on the O. T. A. which had been
appointed in 1920; there were both Majority and Minority docu-
ments— the latter being signed by 11 members. The Majority
Report stated that the Committee had no power to enforce at-
tendance of witnesses or to require that they be sworn and that
other powers were limited by the Deputy Attorney-General.
The chief conclusions specified were that the Committee was
not prepared to advise that the sale of native wine be interfered
with; that the co-operation of other Departments in placing
the enforcement of the O. T. A. entirely in the hands of the
Attorney-General would prove very beneficial; that the Act
should be amended so as to provide for an appeal by the de-
fendant on the record of evidence as taken before the convict-
ing Magistrate — such appeal to be to a Judge in Chambers of
the Supreme Court of Ontario. It was stated, also, that, during
the past year (Oct. 31, 1920), the amount of sales from dis-
pensaries (including the central warehouse) amounted to $3,-
628,191 ; that in the same period there were 3,813 convictions, of
which 27 were subsequently quashed ; that the resultant fines,
exclusive of those collected by municipal police, amounted to
$672,222 and remissions, subsequently granted, to a total of
$33,687 ; that clemency was granted to 181 individuals in respect
to whom imprisonment had been adjudged, and that the amount
of liquor confiscated amounted in value, as estimated, to $227,-
459. The Minority Report urged an appeal to the County or
District Court. On Apr. 14 a motion to adopt the Majority
Report was negatived.
Following the presentation of this Report, Mr. Raney, on
Mch. 1st, after a long discussion, promised legislation giving a
right of appeal to County Court Judges. He was specific, how-
ever, as to the O. T. A. having been demanded and voted upon
by the people : "It cannot be repealed — and it must not be im-
paired— by this Legislature without the consent of the people
of this Province." He believed that the appeal should be care-
fully safeguarded so as not to increase the "already great dif-
ficulties of enforcement"; he maintained that no injustice had
been done without the appeal, though R. L. Brackin (Lib.)
specified the case of a man who had been fined $2,000 and served
three months in prison upon conviction of selling a hundred cases
of liquor which, subsequently, three men confessed to having
stolen from his premises.
548 THE CANADIAN ANNUAL REVIEW
Interjected into this period was the Enquiry at Dunnville,
under instruction from the Attorney-General, into the attitude
of David Hastings, Police Magistrate, respecting local enforce-
ment of the O. T. A. Mr. Hastings had already been suspended
and the complaints to be investigated numbered 12; John A.
Paterson, K.C., of Toronto, was appointed Commissioner, and
the enquiry commenced on Mch. 1st. R. U. McPherson, K.C.,
for the Crown, charged certain prominent citizens, by name,
with having together received about 400 cases and 14 barrels of
liquor in a year; Mr. Commissioner Paterson ruled the matter
out of order, but the press published the names, which included
that of F. R. Lalor, M.P. Testimony was given by various wit-
nesses that Mr. Hastings was admittedly opposed to Prohibition;
that he deemed some of the penalities of the O. T. A. too drastic ;
that he had dismissed a man named Barnes on one charge be-
cause he was a friend of his, and had granted bail to another
man before the warrant against him had been executed ; that he
gave residents of Dunnville little publicity in his newspaper re-
garding O. T. A. cases in the Dunnville Police Court; that on
various occasions accused men were most leniently treated, or
discharged, whom the witnesses believed to have been guilty.
Mr. Hastings stated, in evidence, on Mch. 11, that he was in
favour of the Act and its enforcement, but that he preferred
some system of Prohibitory legislation which would permit
reasonable facilities for those who wished to obtain liquor and
reasonable restrictions for those who abused the privilege ; he
was opposed to any Standard Hotel being allowed to sell liquor
or even soft drinks over the bar, but he would favour liquor
being served to hotel guests at their meals in dining-rooms ; he
thought Temperance did not lie in Prohibition, but in self-con-
trol. Mayor K. J. Shirton testified that Mr. Hastings was "a
man of sterling integrity, who could not be subjected to any
secret influences." After hearing 50 witnesses the Enquiry was
adjourned on Mch. 16 and the Report presented to the Legis-
lature on Apr. 30 by Mr. Raney. In it the Commissioner stated
that in view of all the evidence and of the impression on the
Dunnville public mind and, "notwithstanding the admitted fact
that Mr. Hastings is personally honest and upright," he was of
opinion that Mr. Hastings should be asked to tender his resig-
nation as Magistrate. He declared the charge against Mr. Lalor
and his associates as not proven. On June 23 it was announced
that the Attorney-General had appointed Lieut. -Col. J. C Massie
of Port Colborne to the position in place of Mr. Hastings "now
under suspension."
Meanwhile, Mr. Raney had presented to the Legislature
(Mch. 16) a measure providing for the co-ordination of the
Criminal law and its enforcement under a Provincial Commis-
sioner of Police. He stated that there had been a disposition on
the part of the Provincial Police to avoid having anything to do
with the enforcement of the Ontario Temperance Act. Under
PROHIBITION QUESTION; MR. RANEY AND THE RACE-TRACKS 549
this Bill every officer in the Province, excepting one or two
especially charged with investigating a particular crime, would
have the duty of enforcing the O. T. A. Both the Liberal and
Conservative leaders opposed the Bill. G. Howard Ferguson
based his argument upon the Attorney-General's alleged failure
to give the House any sound reasons for the measure or any
expert advice sufficient to justify him in proposing a plan of law
administration that was directly contrary to the views of the
experienced head of the Provincial Police'Force. H. H. Dewart
declared that behind the Bill was evident the desire of the At-
torney-General to dismiss Superintendent J. E. Rogers ; he op-
posed the fusing of two branches of law enforcement entirely
different in their nature, and objected to the autocratic powers,
in the making of regulations, that would be conferred on the
Attorney-General.
J. C. Tolmie and R. L. Brackin (Liberals) both opposed the
measure and criticized the existing system of enforcement on
the Essex frontier. Conservative speakers attacked the Attor-
ney-General for alleged autocratic methods. The Bill passed in
due course and later in the year (November) the re-organization
took place ; the Province was divided into 8 districts with an
Inspector in each district; a Commissioner of Police was ap-
pointed (Major-Gen. H. M. Elliott) to supervise the whole sys-
tem and to enforce the O. T. A. as well as all other laws. In
December J. E. Rogers was appointed Superintendent of In-
vestigation under General Elliott. In the Legislature, on Apr.
12, Mr. Raney stated that the "free importation of liquor, osten-
sibly for domestic use, but really for sale, is and has been since
Jan. 1st the chief obstacle in the way of the enforcement of
the Ontario Temperance Act." Another Bill, drafted and car-
ried by the Attorney-General, provided for an appeal in the
case of persons convicted of breach of the liquor laws. Under
its terms anyone convicted before a Magistrate could, within
ten days thereafter, appeal to the Senior County or District
Judge, sitting in Chambers, without a jury. The convicted
person, if sentenced to a prison term, was to be liberated pend-
ing the hearing of the appeal on giving approved security; the
Judge was given power to affirm, reverse or amend the order
of the Magistrate.
There was a hot debate on the O. T. A. on Apr. 14 with this
measure as its excuse and Mr. Raney spoke freely: "There is
a deliberate propaganda of lies, promulgated chiefly by Toronto
mouthpieces of the boot-legging and gambling fraternities, and
deliberately designed to discredit the law and its enforcement.
That campaign has been gathering head for a year, and is now
at the peak." Mr. Dewart attacked the Attorney-General with-
out gloves and claimed, as did Mr. Tolmie and others, that the
appeal was not a fair one for the poor man; they wanted it
based upon new evidence as well as upon that taken in the
Police Court, and with this point various Conservative speakers
550 THE CANADIAN ANNUAL REVIEW
agreed ; an amendment to the 2nd reading referring the measure
to a Committee of the House was, however, defeated on division.
A debate on the 19th evoked a tribute to Mr. Raney from J. W.
Curry, K.C., (Lib.) as to his strenuous application and devotion
to work, while Mr. Ferguson kept the balance by a severe per-
sonal attack upon the Attorney-General as a "bully of the law"
with Mr. Dewart comparing him to Torquemada the Spaniard!
The Bill passed eventually — based, however, upon the record
taken before the Magistrate.
The Legislature, in considering a Bill presented for its 2nd
reading on Apr. 25 by H. H. Dewart, Liberal leader, found the
Attorney-General supporting the measure. It proposed to pro-
hibit the sale of native wines and to limit to six ounces the
amount of liquor obtainable on a doctor's prescription. Mr.
Dewart, as a lawyer, contended and reiterated his contention of
the previous Session that : "So long as there is a sale of native
wines in the Province of Ontario, as allowed under the O. T. A.,
Ontario is not a Province coming within the definition of the
Canada Temperance Act, or permitting legally of such a Refer-
endum as is to be held on Apr. 18." The Bill did not, however,
get beyond the Committee stage.
The Liquor Importation Referendum. Under the Dominion
measure called "Bill 26" — an Amendment to the Canada Temper-
ance Act — a Prohibition Province could, by Resolution of its
Legislature, ask the Dominion Government to take a vote of
the electors upon this proposition : "Shall the importation and
the bringing in of intoxicating liquors into the Province be for-
bidden?" If a majority of the electors voting voted "Yes" the
Dominion Government must proclaim importation to be prohibit-
ed under the Act. It would be an offence for any person to "im-
port, send, take or transport into such Province any intoxicating
liquor" for beverage purposes, or to "manufacture or sell liquor
to be unlawfully imported, sent, taken or transported into such
Province." It was, also, declared that : "The carriage or trans-
portation of intoxicating liquor through such Province shall be
only by means of a common carrier, by water or railway, and
not otherwise."
It was claimed by the Prohibition interests that these
clauses were not strong enough, that they did not give control
over the importation of liquor for other than beverage purposes,
nor did they deal with the manufacture of liquor, or the ship-
ment within the Province, of liquor manufactured within it.
Hence the 1920 "Sandy Bill" of the Ontario Legislature which
made it an offence for any person to carry, transport, or deliver,
receive, or take delivery of liquor within the Province of On-
tario, if that liquor was for sale or consumption within the Prov-
ince, except by and under the order of the Board of License
Commissioners and unless such liquor was (1) shipped through
the Province (as from Montreal to Winnipeg) ; (2) exported
from the Province ; (3) moved from one place, where it could be
PROHIBITION QUESTION; MR. RANEY AND THE RACE-TRACKS 551
legally kept, to another place where it could be legally kept
within the Province — but without breaking bulk or changing
ownership. This measure was to come into force only if and
when a Referendum was taken and approved under the terms
of Bill 26 — followed by Dominion and Provincial Proclamations.
Hence, also, the agitation for a Referendum and the grant-
ing of one by Ottawa following upon the 1920 Resolution and
request of the Legislature. The date fixed was Apr. 18, and on
Jan. 25 the Toronto Prohibition Committee to aid in carrying
the vote was constituted, with C. L. Burton as Chairman and
James Hales Vice-Chairman ; the Director of Campaign and
Secretary was the Rev. Peter Bryce, and the Chairman of
Finance J. H. Gundy ; the balance of the Executive was made up
of six clergymen and three ladies. On Feb. 14 Mr. Bryce spoke
at a luncheon attended by 250 Ministers representing 14 de-
nominations, and stated that in two weeks there would be 5,000
workers in the city thoroughly drilled in their duties ; Mrs. F. C.
Ward and Mrs. L. A. Hamilton also spoke. At this juncture
2,000 Provincial representatives of the Dominion Alliance met
in Toronto (Feb. 22-24) and held their 45th annual Convention,
with Charles E. Steele of Port Colborne in the chair and the
Treasurer reporting receipts for the year of $79,219 and expenses
of $91,000.
The Rev. Ben. E. Spence, Secretary, and energetic pro-
tagonist of the cause, stigmatized the rum-running business as
organized rebellion in defiance of constituted authority, and
pointed out that the development of law violation had been
facilitated by the ease with which supplies of liquor could be
obtained, the ready market for its sale and the enormous profits
which accrued. Mr. Steele declared that: "Legislation alone
will not bring about Prohibition. It is not sufficient to pass laws
and then think the fight over. We must direct our energies to-
wards an adequate enforcement of those laws." Rev. Dr. A. S.
Grant, Secretary of the Ontario Referendum Committee, made
a vigorous appeal for unity of action, while Rev. J. A. Ayearst,
Chief Inspector under the O. T. A., delivered a fighting speech.
William Delaney of Niagara Falls, in an address on rum-running
on the Niagara frontier, said that he would rather see this con-
tinued than have conduct such as that of some "stool pigeons"
he had seen : "If it is a necessity to have men to do 'spotting'
business, for Heaven's sake give us decent men! I have seen
things in our Police Court which would make your blood run
cold." A Committee Report making a strong appeal to the
Federal Government to enact a law prohibiting the manufac-
ture, importation, exportation and inter-Provincial transporta-
tion of intoxicating liquors for beverage purposes was passed
by a standing vote.
The Dominion Alliance and the Ontario License Commis-
sion were in close agreement at this time, and during the Refer-
endum J. D. Flavelle, Chairman of the Commission, took an
552 THE CANADIAN ANNUAL REVIEW
active part for Prohibition. In Toronto, on Apr. 8, he described
current conditions of enforcement as a reason for voting against
importation: "The Ontario Temperance Act, as it exists, is
almost non-enforceable from many standpoints." He referred
to the vast waterfront of the Province, which made boot-legging
easy; with this and the large supply of liquor, and big profits
from sales, it was easy to understand the tremendous tempta-
tions for bribery. These bribes were offered to License inspect-
ors, to Policemen and to Customs House officers: "When you
realize that a man who runs a carload of liquor across to Detroit
is expected to make from 50 to 80 thousand dollars upon it, you
will understand that he can afford to spend half that amount on
bribes — $5,000 bribes are quite common."
The campaign which followed was energetic, with nearly
all the ministers and clergymen and women's organizations on
the one side and the politicians either supporting Import abo-
lition or else quiescent; on the other side was the Citizens'
Liberty League, with I. F. Hellmuth, K.C., of Toronto, as Chair-
man, and a large number of supporters who did not care to
appear publicly in the matter. The Dominion Alliance held a
mass-meeting on Apr. 2nd, in Toronto, with a speech from the
Attorney-General in which he denied, first, that the election had
anything to do with Government control: "The issue is clear
and distinct and plain : "Shall the importation and the bringing
of intoxicating liquors into the Province for beverage purposes
be forbidden?' There is not a word there, not a suggestion
there, of Government control, and, if the vote of Apr. 18 is in
favour of a continuance of the present conditions, Government
control will not be advanced one step ; in fact Government con-
trol will have a set-back of many steps, because you cannot have
it while you have free importation. Surely that is obvious. If
you can import liquor from Montreal or Hull, or elsewhere,
where is the Government control?"
Addressing 2,000 young people on Apr. 4, Rev. Jesse Arnup
said: "What the Citizens' Liberty League really wants Js not
Government control of liquor, but liquor control of Govern-
ment." On Apr. 9th the Presbyterian Board of Home Missions
and Social Service issued a strong appeal for an affirmative vote
on the Referendum ; the Rev. Ernest Thomas and Ernest Heaton,
a vigorous opponent of Prohibition, debated the subject in To-
ronto on Apr. 13; Bishop J. F. Sweeny of Toronto (Anglican)
on Apr. 14 issued a letter to his clergy urging them to vote
"Yes" in the Referendum. On this date, also, 8,000 people in the
Arena, Toronto, heard Sir George E. Foster, M.P., the Hon. N. W.
Rowell, K.C., and Hon. E. C. Drury, Premier of Ontario, support
Prohibition. Mr. Drury dealt with existing lawlessness and
cited the Garfield case of two brothers — one brought to the gal-
lows and the other to 20 years in the Penitentiary — as a direct
product of this condition; declared that defeat in the Referen-
dum meant three years of greater lawlessness (before another
PROHIBITION QUESTION; MR. RANEY AND THE RACE-TRACKS 553
vote could be held) and uncontrolled boot-legging; pointed out
that Government control was not before the people and was
impossible under free importation.
He concluded as follows : "Being in charge of a Govern-
ment, I want a law which can be enforced ; there is a law placed
upon the statute books by an overwhelming' majority, and I
don't want that law made a mockery." The Rev. Canon C. W.
Vernon, in The Churchman of Apr. 13, supported that journal in
its contention that "the drink evil is colossal in its extent
and so far-reaching in its influence that complete Pro-
hibition is distinctly worth while and ought, therefore, to be
given a fair trial"; on the morning of the 18th Rabbi B. R.
Brickner of Toronto issued a statement in favour of prohibiting
importation of alcoholic liquors but favourable, also, to the use
of light wines.
Meanwhile, the central figure of the Prohibition campaign
had been W. E. (Pussyfoot) Johnson. He spoke at two big
meetings in Hamilton on Apr. 7 and the press voiced public
comment as to his very ordinary capabilities as a speaker; he
was slow in style but undoubtedly effective in marshalling his
facts ; he was not extreme in view, or new in argument, or sen-
sational in matter. This first address consisted of a calm and
business-like explanation of the successful way in which Pro-
hibition was alleged to be working in the United States. During
three years the arrests for drunkenness in 62 of what were
formerly the worst cities of the Republic were said to have stead-
ily decreased from 371,475 in 1917 to 141,084 in 1920. The Toronto
Star report drew attention to his fondness for "good fat cigars."
Kingston was to have heard Mr. Johnson on the 8th, but the
meeting — with Mayor W. F. Nickle in the chair — was so dis-
turbed that he could not make himself heard; at Montreal, de-
spite its known antagonism to Prohibition, he spoke to an im-
mense audience in St. James' Presbyterian Church, on the 9th,
with J. H. Carson, J. R. Dougall and other local veterans around
him — 'on the way he also spoke at Cornwall and had a cordial
reception ; at Toronto, where on Apr. 10 he tried to speak,
Massey Hall was packed, with a great overflow meeting at the
Metropolitan Church, but the main audience was mixed and a
part of it so bitterly hostile that he could not be heard; so at
Windsor, on the llth, where he was absolutely hooted from the
platform and had to leave the local Armouries and the Canadian
side of the border under Police escort.
The anti-Prohibitionists, or Moderates, put up as good a
fight as possible, but their means were limited, their support
from really moderate citizens was too silent and retiring to be
effective, their cause was blackened in advance by alleged as-
sociation with the admitted evils of intemperance. The Rev.
Dr. T. C. Street Macklem, Provost of Trinity University, was
a supporter of the Liberty League, and on Mch. 30 put the
issue as follows : "Temperance is better than Prohibition. Total
554 THE CANADIAN ANNUAL REVIEW
Prohibition is bad for the cause of temperance and detrimental
to health and morals." He thought that restrictive laws should
not run in advance of the wishes of the community; mere ma-
jority rule would not maintain law as it should be maintained.
There were several reasons why he opposed total Prohibition:
"Sudden restriction in one direction means an outbreak else-
where ; blue laws are not calculated to promote the highest ends ;
lack of moderation is one of our national evils and well-meaning
but ill-advised people are taking the bit in their mouths and will
cause trouble." Health, he declared, was menaced by a con-
taminated and poisonous contraband with injurious home-made
concoctions which had also made their appearance ; beer drink-
ers were being changed into whiskey drinkers; a law which
would save from drunkenness but which would produce spies
and perjurers was not to be commended.
Prof. Stephen Leacock of McGill University, the most prom-
inent Canadian opponent of Prohibition, delivered an address in
Toronto on Apr. 1st, and handled the whole matter without
gloves : "A fanatical minority has captured the ear of the public
and the power of the Legislature. They have contrived to throw
around them a false mantle of religion and morality. And for
the time being the only response is silence. Things have come
to a point where the expression of opinion is no longer free and
unrestrained. People will not speak out frankly what they
think. This man trembles for his business, that man for his pro-
fession. All, or nearly all, kept silent. The Prohibitionist has
contrived to masquerade before the country as if he were of
necessity a good man, a moral man, and his opponent, of neces-
sity, a bad one. A very large part of the most honest and ftoh-
ourable opinion of the country is opposed to Prohibition, as well
as a very large part of the worst opinion." He claimed that :
I happen to be of those who are honestly and sincerely opposed to
Prohibition as a matter of principle. I think the movement is the worst
national development, the most un-British agitation that has cometp us
in half a century. It is my candid belief that the adoption of ProJwition
in the United States is the worst disaster that has fallen upon the^vmeri-
can Republic since its organization. If it could last, it would undermine
the foundations of government itself. If it could last, it would in time
bring down the strongest political fabric into anarchy and dissolution.
But Prohibition cannot last, neither here nor there nor anywhere be-
cause it is based upon a lie. And a lie cannot endure. Prohibition de-
clares it to be a crime to drink beer. And it is not a crime. The common
sense of every honest man tells him that it is not a crime to drink a
glass of beer. All the Legislatures that ever sat cannot make it so. You
can make your statutes as cruel and as sharp as you like. You may
multiply your spies and informers, you may throw wide the doors of
your penitentiaries, and you still cannot make it a crime; and the
sharper and the harder your law the more public sense and public feeling
will revolt against it. Let those who have organized the legislative
tyranny for Prohibition look well to what is bound to follow. They are
putting their trust in coercion, in the gaol, in the whip and the scourge.
They are done with the moral appeal. They are finished with persua-
sion. They want authority and to be obeyed under the fear of the
criminal law. And the time must come when they and their law must
go down together.
PROHIBITION QUESTION; MR. RANEY AND THE RACE-TRACKS 555
He did not deal with whiskey: "At an easy computation
there are at least two million of us in Canada who want, if left
alone, to drink beer and wine. The Prohibitionist proposes to
treat us as two million criminals. It can't be done. All that he
can effect is to break down the basis of law itself. And that is
what is happening in America. Law, divorced from the support
of the individual conscience, is breaking down." The anti-
Prohibitionists also imported an American orator — Charles A.
Windle of Chicago. He was a popular speaker and had his public
record in the War not been pro-German and anti-British, he
might have helped the negative side in the Referendum ; as it
was the Prohibitionists produced much material from his week-
ly journal, Brann's Iconoclast, showing what his views had been
and still were. The Rev. Ernest Thomas, on Apr. 9, quoted, as
personally verified, some vile statements as to England and the
British, published as late as March, 1921 — one of them as fol-
lows: "Was such a civilization worth saving? Is this heartless
old hag (England) clothed in the garments of lust, loot and
murder, worthy the life of the humblest son of Columbia who
died in France?" W. E. Johnson, in his Hamilton speech, had
lauded Great Britain and read several extracts from what he
called "the most villainous, anti-British publication in the United
States."
Meantime, Mr. Windle had spoken in Toronto on Apr. 4;
quoted largely from the, Bible and made a series of statements
which were witty after a certain type, and unquestionably ef-
fective with the average audience. For instance, he declared
tha^ "Prohibition is unchristian in character because Christ-
ian" is an internal remedy for sins, while Prohibition is a
quack nostrum to be applied externally and rubbed in with a
policeman's baton." He was at Hamilton on the 7th, and warn-
ed the people that the anti-tobacco agitation of the W.C.T.U.
in the United States was growing in strength, and said to the
tobac^f>.-users that unless they spiked Prohibition now their
cigars and pipes would be the next to go. Temperance, he added,
was a Christian virtue, while total abstinence from liquor was a
Mohammedan doctrine. He spoke at Ottawa on the 10th with
Admiral Sir Charles Kingsmill, Hon. President -of the Citizens'
Liberty League, on the platform, and speeches from Tom Moore,
President of the Trades Congress, and Rev. Canon A. H. Whalley.
This completed a week's tour of Ontario ; then^ came the
public developments as to his War and anti-British views. Mr.
Hellmuth announced on the 12th that the League was through
with him ; Admiral Kingsmill, at Ottawa, expressed regret that
he had supported him on the platform; Col. William Hendrie,
President of the Hamilton League, apologized for having
brought him to that City. Mr. Windle, on the 16th, published a
letter denying the charges, alleging misquotation and garbling,
claiming that Neutrality — prior to 1917 — was not hostility.
556 THE CANADIAN ANNUAL REVIEW
Meantime, the Liberty League had obtained many thousands of
signatures to a Memorial addressed to the Ontario Government
which urged that Democracy had sprung from the desire for in-
dividual liberty, and could only be maintained by the preserva-
tion of that liberty. They declared that the cause of Christian
temperance and of stabilized democracy could best be served as
follows :
1. By Government control of the sale of spirituous liquors.
2. By the treatment of those who have not the strength to take
care of themselves under such conditions, as patients, not as criminals.
3. By permission to purchase beer and wines under a system to be
devised by the Government, thus minimizing the evil of illicit stills and
the illegal sale of spirituous liquors and drugs.
4. By the formation of a voluntary organization similar to the Blue
Ribbon Army in Great Britain, whereby all available energies and funds
may be devoted to the promotion of true temperance by education and
example.
It asked the Government to provide a means for expression
of opinion on the question of Government control, and declared
that the League would not support any return to the "open bar."
On Apr. 18 the voting took place with, incidentally, an assertion
by the Toronto Globe that of late as much as $100,000 daily had
been sent out of the Province to purchase whiskey and other in-
toxicants and that Ontario's whiskey bill was over $10,000,000
a year. The result of the contest was a majority of 171,000 for
what was, practically, total Prohibition; 13 cities went "dry" and
11 the opposite — including important centres such as Toronto,
Hamilton, Ottawa, Fort William, Kitchener, Port Arthur, Wei-
land, Windsor and Kingston; women were declared by the press
to have been the most numerous voters, the most enthusiastic
workers ; the rural districts went, as a rule, for Prohibition.
The final figures showed the Toronto vote to have been 82,397
against Prohibition of imports and 73,377 in favour; the total
vote of the Province was 373,938 against and 540,773 in favour
of Prohibition, or an aggregate vote of 914,711 compared with
1,145,705 in the general Referendum of 1919.
Of the succeeding comment, Mr. Raney's was interesting:
"It will enormously assist in the enforcement of the law. It
will not take long to exhaust stocks in hand and we will have
much easier conditions. There was only one thing for the people
to do, and that was to give Prohibition a fair chance." As to
the press, the Toronto Telegram gave credit for the result to the
women; other journals declared that the rural districts did it;
still others alleged that the chief influence lay in the churches.
The Pioneer, the organ of the Prohibitionists, prepared at once
for further advances. It demanded (Apr. 29) that "the menace
of the private cellar" be removed, and urged that one of the fol-
lowing courses be adopted: (1) Registration and taxation of
all liquor privately owned; (2) limit of quantity to be legally
held at one time to, say, the Alberta figure of 2 gallons ; (3) Gov-
ernment compulsory purchase of all private stocks for use in
PROHIBITION QUESTION; MR. RANEY AND THE RACE-TRACKS 557
medical and similar purposes. On June 18 the Dominion Gov-
ernment proclaimed Bill 26 as in force and, consequently, the
prohibition of liquor importation into Ontario ; as a consequence,
also, the Provincial "Sandy Bill" prohibiting the commercial
movement of liquor within the Province came into effect by
Order-in-Council of the Drury Government passed on July 6.
Both measures went into legal operation on July 19.
The Attorney-General and the Race-Tracks. During the
year Mr. Raney took up, with much vigour, the question of race-
track betting and all its alleged evils. In May it had been an-
nounced that men chosen especially from the Royal Canadian
Mounted Police would be placed on guard by the Dominion
authorities at every race-track in Canada to see that new pro-
visions in the Criminal Code regarding the operation of race
meets were carried out. Under this law there was a limit to the
proportion which the Racing Clubs could take from the amounts
wagered, and there were other regulations calculated to keep
matters in order. At London, on June 3rd, the Hon. Mr. Raney
delivered an elaborate, written address on this general subject
to the Laymen of the local Methodist Conference, and handled
without restriction what he called the "112 days of unrestrained
gambling," legalized by statute and approved by society, in con-
nection with the yearly Races.
He declared that Canada was being placed on the level of
Cuba and Mexico ; he described the gambling operations of the
Jockey Clubs and Racing Associations as the "new process of
millionaire-making through a business of commercialized vice";
he stated his belief that it was being carried on in defiance of the
will of 90 per cent, of the people of Ontario. He claimed that the
profits made at Jockey Clubs did not go to help horse-racing,
proper, but Into the pockets of the shareholders ; that control of
certain of the Clubs was passing into the hands of professional
betting-house men and foreign gamblers; that the Federal
amendment of 1920 was along the German line of making the
practice of vice cheaper and safer ; that the Pari-mutuel betting
machines were gambling machines just as much as the roulette
wheels specified by the Criminal Code ; that the results of this
gambling were tragic to many individuals and ruin to many
families.
He claimed that enormous sums were made by shareholders
in these Jockey Clubs and that, in 1910-1917, on an investment
of $10,000 the members of the Ontario Jockey Club drew cash
and stock dividends, from "their betting-house business," of
$710,000, with the stock dividends worth more than cash — and
that this was an average of more than $100,000 profit a year, or
1,000 per cent, per annum on the investment; that at the Ham-
ilton Jockey Club the investment was $4,000 and on this original
amount the Club had paid $378,300 in cash dividends between
1910 and 1917 with a capital investment in 1917 of $688,229— an
average profit on investment of 3,000 per cent. The policy of
558 THE CANADIAN ANNUAL REVIEW
increasing the taxation on these institutions would be further
developed Mr. Raney stated, and pointed out that legislation in-
troduced in 1916 had first increased the taxes on race meetings —
which had been taxed in 1914 at $500 per day — to $1,250 per day.
The revenues from this source had been as follows: 1914,
$42,250; 1915, $42,350; 1916, $136,265 ; 1917, $100,725. The Drury
Government had, in 1920, increased this tax to $7,500 per day
and realized $770,000 revenue. It had also required, for the
future, sworn statements of receipts and disbursements. They
had hoped to altogether prohibit the operation of these "betting-
houses" in the Province, but were advised by the Courts that
they did not have the power in face of Dominion legislation;
hence the taxation of which he was proud. He claimed, in con-
clusion, that there was a subtle and very serious danger in this
connection : "It is the confusion of the moral standard produced
by an immoral law, and by the support of that law by people of
high social and political standing." This speech was, of course,
keenly resented in many circles and in many influential quarters,
where codes of morality were high and the belief in racing strong
and sincere.
Col. William Hendrie, whose name had been connected with
horse-racing for many years, who was President of the Ontario
Jockey Club and whose reputation as a citizen stood high, told
the Toronto Globe (June 5) that the percentage of profit to the
shareholders in that Club did not exceed 5 per cent. ; that its
management included "some of our most respectable and prom-
inent citizens"; that Mr. Raney was not in touch with public
opinion and was influenced by the same feelings that made him
support Prohibition ; that, as to the race-tracks, people could bet
or not bet, as they chose, and, so far as "rake off," or percentage,
was concerned, the greater part of this went to provide the
purses for the races. The Ottawa Journal (Cons.) asked, on
June 8: "Who constituted Mr. Raney the moral arbiter, the
conscience, of the Province of Ontario ; in whose opinion is racing
dishonourable and disreputable ? Only a few, in addition to Mr.
Raney, have any feeling of humiliation because there is horse-
racing in Ontario."
The returns of Ontario race-tracks to the Government for
the Spring season of 1921 showed varied profits — the Ontario
Jockey Club $21,074, the Niagara Racing Association $11,108,
Thorncliffe $40,399, and the Metropolitan $66,806. The Mail and
Empire comment (July 16) was as follows : "It does not appear
that the various Racing Associations have derived a profit out
of proportion to the opportunities for amusement they have
given the public, x x x Powerful influences are at work
to stop the Mutuel machines, and it is generally believed that if
they succeed in abolishing betting there will be no more horse-
racing." It was pointed out that the money was not lost; it
only changed hands. In the press of July 19 appeared a letter
written by Col. William Hendrie to Mr. Premier Drury, on June
24, denying many of the Attorney-General's statements and de-
PROHIBITION QUESTION: MR. RANEY AND THE RACE-TRACKS 559
daring that, so far as the Ontario Jockey Club was concerned,
it had never paid a cash dividend in excess of five per cent, per
annum on the paid-up capital except during four years, when an
additional 5 per cent, was paid, through the sale of some prop-
erty at a profit, and that the stock dividends were due to the
Woodbine property which grew in value, as the City expanded
eastward, from its $150,000 cost price to the 1921 assessment of
$715,040.
Mr. Raney replied in the press (July 20), re-arranged his
figures and claimed that the Club's original investment of $10,000
had grown, partly as the result of land appreciation and partly
as the result of betting-house profits, to more than 100 times the
original investment, together with an annual cash dividend of
300 per cent, on the original investment. At a Y.M.C.A. banquet,
on Oct. 3rd, the Attorney-General returned, with vehemence,
to the attack, and concluded as follows : "I don't know how long
the people of Ontario are going to stand for this thing, to have
this Province made the meeting place, the camping ground, of
a crowd which panders to certain interests." During the Elec-
tions Mr. Raney repeated his speech on this subject at several
points in Ontario; on Nov. 15 the annual meeting of the Ontario
Jockey Club decided to distribute $200,000 to horsemen for de-
veloping thoroughbred horses, and Col. Hendrie remarked that:
"The world would be a pleasanter place if we could eliminate
those trying people who cannot endure the thought of others
being happy in an occupation or entertainment that does not
appeal to themselves." Meanwhile, Mr. Raney had been sup-
ported by the Toronto Star and Globe and other newspapers, by
Resolutions of the Toronto and Hamilton Methodist Confer-
ences and by other similar bodies. On Nov. 14 the Attorney-
General's Department announced the following table of race-
track returns for two years :
Race Track
Ontario Jockey Club (Toronto) —
Spring meeting
Fall meeting
Windsor Jockey Club —
Gate Receipts
1920 1921
Amount Wagered
1920 1921
$ 119,737.50 $ 174,583.00 $ 2,946,902 $ 4,052,388
92,818.25 163,133.25 2,780,470 4,784,986
Spring meeting
137,156.00
140,984.25
3,854,955
3,856,820
Fall meeting
118,725.00
128,517.00
3,964,422
4,363,057
Niagara Racing Association (Fort Erie) —
July meeting
68,024.00
111,353.00
2,323,017
3,303,962
August meeting
83,949.00
133,960.75
3,191,630
4,077,344
Kenilworth (Windsor) —
Spring meeting
88,867.15
113,515.00
3,666,931
3,725,151
Fall meeting
125,274.00
98,872.00
3,235,386
3,207,326
ThornclifTe Association (Toronto) —
Spring meeting
53,836.50
115,656.75
2,125,857
3 261,682
Fall meeting
57,346.75
98,390.25
2,106,967
3;246,59l
Hamilton Jockey Club—-
Spring meeting
81,376.75
126,818.00
2,038,906
3,466,644
Fall meeting
82,246.75
116,718.00
2,080,509
2,973,540
Metropolitan Assn. and Toronto Driving
Club (Toronto) —
Spring meeting
28,120.00
67,121.15
1,185,102
2,399,640
Fall meeting
29,045.00
67,280.40
1,029,620
2,613,757
Western Racing Assn. (Windsor) (now
Devonshire) —
Spring meeting
84,763.50
119,958.15
2,026,102
3,525,327
Fall meeting
100,140.00
118,238.50
3,607,770
3,920,381
Total
$1,351,426.15 $1,895,099.45 $42,164,546 $56,778,596
560 THE CANADIAN ANNUAL REVIEW
Prohibition Incidents and Political Affairs. The Attorney-
General had been behind, or heartily in accord with the move-
ment to carry Prohibition of liquor import ; he was interested
in various incidents following the success of the Referendum.
These incidents included the trial, on Feb. 22-24, at Windsor,
of Rev. J. O. L. Spracklin, the Methodist pastor at Sandwich
and Inspector under the O. T. A., for the murder of Trimble,
a local hotel-keeper, in November, 1920, and the verdict of ac-
quittal given by the jury; the announcement on June 2nd that
the Government had made a profit of $400,000 through the
License Board by taking out of bond, just before the Budget in-
crease of taxation went into effect, a large amount of liquor im-
ported for legal purposes, with, also, the application of the $1.00
increase in price per bottle to the purchasers ; the resignation at
this time of J. D. Flavelle as Chairman of the License Board and
appointment in August of James Hales, K.C., as his successor;
the resumption on Aug. 26 of the shipment of beer at Windsor
to the United States, without intervention by the Attorney-
General, or License Board; the seizure at Ottawa (June 4) by
the Provincial Police of $715,000 worth of liquor belonging to
the Ontario Export Co. and the decision in October of Magis-
trate J. E. Askwith that the proprietors had not been guilty of
an infraction of the O. T. A. and that the liquor could be sold —
as it already had been — to the Quebec Liquor Commission; the
appointment of Frank Elliott (Apr. 29) to succeed W. J. Lannin
as O. T. A. Inspector in the Border cities, and the vigorous pro-
test, in May, of the Cobalt G.W.V.A. against the methods used
by local O. T. A. agents in securing convictions ; the announce-
ment on July 22 that O. T. A. officials had no right to search the
persons of travellers for liquor and that in future suit-cases
would not be searched except for special reasons.
The decision of Judge W. E. Gundy at Windsor, on Aug. 15,
in the case of the British-American Brewing Co., ordering the
restoration of 100 cartons of beer to the Brewery aroused much
interest and caused an immediate increase in exports and "rum-
running." In this latter connection the Attorney-General at
once issued instructions that all shipments of liquor leaving the
Canadian shore on the Essex border by any other mode of con-
veyance than a public carrier, was to be seized. This action was
opposed to the above and other Court decisions ; the Province
appeared to have no legal right of interference with shipments
to the United States whether by common or private carrier.
The practical point, however, was that if the liquor went over
the border by common carrier it would be seized by the United
States officials and if by private carrier it would be seized (if
found) by the Ontario officials.
Meanwhile, the question of Medical prescriptions was being
discussed by officials and by the profession. On May 28 the
Ontario Board of License Commissioners announced that no
physician should require to issue more than 25 prescriptions a
I
PROHIBITION QUESTION: MR. RANEY AND THE RACE-TRACKS 561
month and that, after June 1st, the limit for any one physician
would be 50 a month. The penalty for infraction would be loss
of the privilege altogether. A statement was issued that only
803 per cent, of the physicians in actual Ontario practice were
to-day exceeding the 50 prescriptions limit, and that, of a total
of 3^421 practising physicians 903 issued no prescriptions at all,
while 1,880 issued 25 or less, and 363 from 26 to 50. At the 41st
meeting of the Ontario Medical Association at Niagara Falls
(May 31) a Report on the Liquor Problem recommended special
care and limitation in the issue of these prescriptions and en-
quiry in all doubtful cases; returns from 510 physicians showed
16-94 as the average number issued per month. On Oct. 1st the
new Chairman of the License Board (Mr. Hales) published a
statement declaring that the greater number of Ontario physic-
ians either gave no liquor prescriptions or did not exceed 25 per
month with 97 per cent, issuing less than the legal 50 prescrip-
tions a month. This did not, however, satisfy the Prohibitionist
.leaders, and the Pioneer, on Oct. 21, urged radical action by the
Legislature to meet an "intolerable situation," and quoted the
following figures :
U.S.A. and Ontario Comparison U.S. Ontario
Total Number of doctors 152,627 3.489
Number issuing prescriptions 33,379 2,534
Number not issuing prescriptions 119,248 955
Per cent, issuing prescriptions 22 73
Per cent, not issuing perscriptions 78 27
Maximum amount of prescriptions in ounces 71,208,533 9,631,040
Average per doctor in ounces 467 2,800
Average per capita of population -59 3-21
Other incidents included the prosecution of W. P. Fraser,
Secretary of the Ontario Jockey Club, because at the Spring
races two members of the Club were convicted and fined $200
each for drinking out of a flask on the Club premises, with the
result of Mr. Fraser's conviction and a fine of $1,000 followed
by an appeal and the quashing of the conviction (July 29) by
Judge Morson — Mr. Fraser issuing a statement that "it was
admitted by the Attorney-General's officers in the Police Court
that the O. J. C. had done everything in its power to prevent
liquor being taken to the Woodbine, and that in the face of this
the Secretary of the Club was fined $1,000, while those guilty
of the act were let go with a minimum fine of $200." Mr. Raney,
on July 1st, received Marshal Fayolle of France on behalf of the
Ontario Government, and made a formal speech of welcome ; on
July 28 he announced a List of 91 new King's Counsel, and issued
correspondence which described their selection by a Special
Committee composed of Sir W. R. Meredith, Sir William Mulock
and Dr. John Hoskin.
The Attorney-General and Provincial Treasurer, on Nov.
2nd, received protests from a large Deputation, representing the
cities and towns of the Province, against the municipalities be-
ing compelled to pay to the Government all Police Court fines
other than those for prosecutions under Civic by-laws, and Mr.
Raney suggested a Commission to investigate the matter. About
19
562 THE CANADIAN ANNUAL REVIEW
this time the Attorney-General received from A. H. O'Brien,
K.C., a Report as to the advisability of "blue sky" legislation in
Ontario. Mr. O'Brien pointed out that, before even attempting
to draft a Bill, there should be an examination of existing types
of legislation from a practical standpoint; he had found the
choice resting between two types of legislation, the one known
as the "Fraud Act," adopted in three American States, and the
wider type of "blue sky" legislation, adopted in some 40 States
and in 3 Canadian Provinces. The latter method involved ap-
proval by the Province of all Stock issues and the issuing of a
certificate before stock could be offered for sale. The former
provided authority for the Attorney-General to prevent the sale
of Stock to the public in cases where it was reported that any
fraud or false pretense was being employed.
It was not a good year for the farmer in On-
Ontario tario. The crops were light and the decline in
Agriculture; prices persistent; potatoes were an exceptionally
and HU Ue* poor crop' an<^ a1^ gra*ns were short except corn ;
partment; ' sugar beets were low in production and value and
The UJF.6. Live-stock suffered severely in price and in demand,
while hogs were badly affected by the falling
prices ; conditions in cheese export were unsettled, and the fruit
yield was uncertain and uneven. The year 1920 had seen a de-
crease in value of Farm production from $397,238,400 to $367,-
608,619, according to Ontario official figures, while the values of
Live-stock on hand had decreased slightly from $339,607,932 to
$326,737,337. But these changes were trifling compared with
1921 values ; the combination of poor yields and low prices
gave a severe set-back for the farmer. Live-stock also showed
a great change — even the numbers being reduced. Horses in
1921 numbered 694,237 compared with 704,640 in 1920; cattle
increased slightly from 2,881,827 to 2,890,113 in number; sheep
fell from 1,129,084 to 1,081,828 and swine from 1,614,356 to 1,-
563,807. Poultry increased slightly from 11,005,845 to 11,458,-
206. Values fell $8,000,000, with the total in 1921 for Horses
$66,349,000; Cattle $128,767,000; Sheep $8,249,000; Swine $20,-
659,000. These were Federal figures, which usually differed from
Provincial statistics — though both were official. The Dominion
Bureau of Statistics figures as to Field crops in 1921 showed a
total value for Ontario of $236,907,000, as against $375,746,900 in
1920 and $383,573,900 in 1919. The details were as follows.
Field Crops
Fall Wheat
Area
Acres
621 420
Yield
per Acre
Bushels
22-00
Total
Yield 1
Bushels
13 667 900
\verage
Price pe
Bushel
1 05
r Total
Value
1 4 362 000
Spring Wheat
152,904
12-50
1 907 500
1 06
2 014 000
Oats
3,094958
23-40
72 575 000
47
33 774 000
Barley . '
462 176
22-00
10 149 000
63
6 390 000
Rye
122 868
14-50
1 775 600
88
1 571 000
Peas
105,964
13-60
1 441 100
1 50
2 166000
Beans
26,509
16-10
427.500
2.35
1.006,000
AGRICULTURE IN ONTARIO; MR. DOHERTY'S DEPARTMENT 563
Field Crops
Buckwheat
Area
Acres
147 944
Yield
per Acre
Bushels
22-70
Total
Yield
Bushels
7 353 800
Average
Price per
Bushel
72
Total
Value
2 416 000
Mixed Grains
Flaxseed
618,289
7,534
26.20
8.90
16,188,500
66,700
.58
1.58
9,373,000
105,400
Corn (for husking)
250 684
54-00
13 542 000
72
10 750 000
Potatoes
Turnips, mangolds, etc..
164,096
104 157
93.80
35 1 • 25
15,400,000
36 586 000
1.00
35
15,400,000
12 805 000
Hay and Clover
3,551 655
tons
1- 11
tons
3 954 200
per ton
21.25
84,027,000
Alfalfa
177 205
2-58
456 400
20 00
9 128 000
Fodder Corn
438 343
11-44
5 015 100
6 50
32 598 000
Sugar Beets
28.367
9-45
268.000
6.50
1.742.000
The Fruit interests of Ontario had met in recent years with
many difficulties, and one of the first efforts of Hon. Manning
Doherty as Minister of Agriculture was in the organization of
this industry along business and co-operative lines. According
to figures published by the Ontario Agricultural College (Sep-
tember, 1921) 129 Niagara District farms, in the heart of the
fruit country, covered 4,788 acres, with 3,975 acres in crop, and
a total capital employed of $2,809,655, or an average of $21,755
per farm averaging 37 acres ; the real estate value of these prop-
erties was $2,450,800, the farm revenue was $824,350, the run-
ning expenses $435,927, the Net farm Income was $334,615 and
the Labour income $194,133.
The Niagara Fruit Growers' Association met at Grimsby on
Jan. 20 with F. A. J. Sheppard of St. Catharines in the chair. A
Resolution was passed asking the Dominion Government to
compel basket manufacturers to mark on the bottom of baskets,
made by them, their names or some distinguishing mark with,
also, the year of manufacture; Express Companies, it appeared,
were losing much money through accepting shipments in baskets
not up to any specific standard. Another motion eulogized Mr.
Doherty, Minister of Agriculture, "who has manifested such a
keen interest in the welfare of the Fruit-grower and is making
such a profound effort to better the Growers' living and financial
conditions, by assisting in the formation of a marketting organi-
zation to be known as the Niagara Peninsula Growers, Ltd."
J. P. Bridgeman of Winona was elected President for 1921.
Mr. Bridgeman, on the 21st, met T. J. Mahoney, President
of the Niagara District Grape Growers, Ltd., at Stoney Creek
and virtually completed organization of the above-named as a
Co-operative selling organization aiming to handle and market
all the fruit grown in the Niagara district. There had been a
Conference in the afternoon with Hon. Mr. Doherty in Toronto ;
Mr. Mahoney declared that the Growers had determined to con-
trol the grape crop of Niagara, as they believed that the men
who produced the crops were entitled to dictate the price — not
the wine manufacturers or the grape juice interests. In the
Legislature, on Feb. 23, W. J. Bragg of West Durham (Lib.)
moved and carried a Resolution urging an Enquiry into condi-
tions abroad affecting prices of apples and other fruits to the
Canadian producers. Mr. Doherty, in comment, stated that this
564 THE CANADIAN ANNUAL REVIEW
question had been the subject of a close enquiry by his Depart-
ment. He would like to see a strong organization formed, of
all the Fruit-growers of the Province, which would market the
fruit and arrange for transportation. As for the high prices
charged in Britain for Canadian apples, he admitted that they
had the effect of restricting the sale : "The fruit trade in Britain
is controlled by a powerful ring, and the only thing for Canadian
growers to do is to organize along Co-operative lines and fight
the ring as British growers are already doing."
Meantime, the Niagara Peninsula Growers, Ltd., was taking
root. Dr. G. C. Creeknan, ex-President of the Agricultural
College and Agent-General in London, resigned the latter post
to take the general management at the end of February, but two
months later had to give it up owing to ill-health. Mr. Doherty
was then offered $12,000 a year to undertake the work, but de-
clined; on May 9 the appointment of T. J. Mahoney of Stoney
Creek was announced at a Grimsby 'meeting, and organization
was completed by the election of Lieut.-Col. H. L. Roberts,
Grimsby, as President. On Nov. 1st, following, Mr. Mahoney
was able to issue a statement showing the handling of 163 car-
loads of apples, 326 of grapes, 510 of peaches and 428 cars of
other fruits. He mentioned the curious fact that British Colum-
bia apples were driving the Ontario product out of its own local
markets and commanding higher prices ; at the same time, the
Ontario apple, through the Fruit Growers' Association, had won
the £100 Silver Challenge Cup at the National Apple Exhibition,
London, in October, with 4 Ist-Prize gold medals, 5 2nd-Prize
silver medals, and one 3rd-Prize bronze medal also won.
Other agricultural incidents of the year included the state-
ment of President J. R. Reynolds of the O. A. C., Guelph,
(Farmers' Sun, Apr. 2nd) that a man must have an investment
of about $12,000 in his Ontario farm to derive the moderate in-
come of $1,000 a year clear; the appointment of Lionel Steven-
son, B.S.A., (Jan. 25) to the new post of Secretary and Super-
vising Director of the Department of Agriculture and with a
view to bringing about greater co-operation and co-ordination
in the work of its branches ; the election of J. A. Boag, Queens-
ville, as President of the Ontario Horse-breeders' Association,
of J. B. Spencer, Ottawa, as President of the Ontario Agricul-
tural and Experimental Union, of F. C. Matheson, Powassan, as
President of the Ontario Ranchers' Association, of W. J. Con-
nelly, Cobden, as President of the Ontario Association of Fairs
and Exhibitions, of W. W. Webster, Little Britain, as President
of the Ontario Beekeepers' Association, of Arthur Gibson, Ot-
tawa, as President of the Entomological Society of Ontario.
According to figures compiled and issued by the Dominion
Bureau of Statistics, the Agricultural revenue of Ontario farms
over a four-year period ending in 1921, and indicating, also, the
deflation in prices, were as follows:
AGRICULTURE IN ONTARIO; MR. DOHERTY'S DEPARTMENT 565
Items
Field Crops
Farm Animals
Wool
1918
... $384,0 14,000
68,916,000
3 949 000
1919
$383,574,000
70,228,000
3,542,000
1920
5375,747,000
59,953,000
1,663,000
1921
$239,627,000
36,051,000
615,000
Dairy Products
102 216 000
130 041 000
124947,000
124,947,000
Fruits and Vegetables
Poultry and Eggs
Fur Farming
.'.'.'..'.'.'..'.'.. i7|20ojooo
14,400,000
1 1 ,000
17,200,000
14,400,000
11 000
17,200,000
16,200,000
52,000
17,200,000
19,800,000
58,000
Maple Products
Tobacco
750,000
1.950.000
1,000,000
8.840.000
1.255,000
3,253,000
1,340,000
1,780,000
Mr. Doherty's Visit to England. The Minister of Agricul-
ture continued his Cattle Embargo agitation during the year
and, in order to make his protests more effective, went to Eng-
land late in February ; he had received several cablegrams urging
him to be a speaker at the mass-meeting called for Mch. 8, in
London, to demand the removal of the Embargo. The Legis-
lature discussed the subject on Feb. 25, and both Liberal and
Conservative speakers opposed this action as being an inter-
ference with the internal politics and government of Great
Britain. J. C. Tolmie (Lib.) stated that the issue was a political
one in England and that under such conditions to let the Min-
ister go would be an impropriety : "It is unbecoming for this
Government to get mixed up in a political discussion in Britain."
Howard Ferguson (Cons, leader) took the ground that, in
any case, the matter was one for Federal action ; Thomas Craw-
ford (Cons.) and R. R. Hall (Lib.) added their protests. Mr.
Premier Drury simply pointed to the coming exclusion of Cana-
dian cattle from the United States market: "It behooves us in
this case to have an alternative market ready."
Mr. Doherty spoke at the London meeting with several
prominent British representatives and made this concise state-
ment : "Canada has never had a single, solitary, case of pleuro-
pneumonia or of foot and mouth disease in her own herds since
the Embargo was instituted. The only cases we have had in
Canada have occurred in quarantine at the Port of Quebec, and
only in the case of animals that were being imported into Canada
from Great Britain. These diseased animals were immediately
destroyed." He went on to speak of trade : "I believe in the
future of the British Empire — an Empire which is held together
by bonds of blood and sentiment. But I, for one, want to see
these bonds supported by a great and flourishing trade between
the various parts of that Empire." Further on in the speech
he said : "The herds of Canada to-day are better than they ever
were. I do not mind prophesying that if the Embargo were re-
moved Canada could send this country between 200,000 and 300,-
000 store cattle during the first year and, if the farmers of
Canada were assured that they would have a steady market in
Great Britain, inside of five years the number of store cattle
available would be raised to 500,000 a year."
The Minister took great interest in the question of Immi-
gration, and believed that it was essential in order to keep up
the farm production of the Province. Just before leaving Lon-
don he told Canada, a weekly journal, that he had, recently, been
566 THE CANADIAN ANNUAL REVIEW
occupied with the satisfactory settlement of organized parties
of emigrants who were leaving for Ontario and, also, with ar-
ranging for more systematic co-operation between Fruit-growers
in Ontario and wholesale importers and distributors in Britain.
As to the Embargo : "I have been everywhere received with the
greatest courtesy, and those who are opposed to the removal of
the Embargo have been foremost in desiring to have from me
all the official data available. The idea that danger from disease
is a reasonable ground for its continued enforcement has, I
think, been finally dispelled. I go back with a still stronger be-
lief in the vital necessity, during the next few years, of all of
us doing everything possible — we overseas, you here — to de-
velop trade within the Empire — exports as well as imports." In
March the first party of ex-Service men for Ontario farms ar-
rived and were distributed under careful direction.
Addressing the Toronto Board of Trade on Apr. 22, after
his return, Mr. Doherty expressed impatience with the press re-
ports as to hundreds of men walking the streets of the big cities
looking for work : "It is particularly difficult to understand how
such a condition of affairs can exist, when I am constantly be-
sieged with applications from farmers who want workers on the
farms. Hundreds of farmers are imploring the Department to
find help for them. If those workless men would get out and
take the kind of a job they could get, and work up to something
better, as all of us have had to do, the country would be much
better off." He stated that, for the year ending November, 1920,
the Department had placed 1,967 men on the farms, in addition
to families, and that they brought with them capital of over
$500,000. Since November, the Government had placed 1,500
more men, all of whom had capital. In other speeches during
the year Mr. Doherty followed up these ideas and, to a National
Exhibition luncheon (Sept. 9), he declared that "the greatest
problem confronting the Provincial and Federal Governments
is to find the best markets for our products," and asserted that
the British market was the greatest and best; that, however,
"our marketting in Great Britain is badly done and our methods
fall far below the methods of New Zealand, for instance."
On Sept. 27 the Minister announced that Ontario was about
to commence a campaign to place 5,000 British farmers on 5,000
Ontario farms and that Agent-General W. C. Noxon, in London,
would handle the advertising programme in Great Britain.
Facts and not fiction would be the basis of their literature. Mr.
Doherty continued to be a strong advocate of co-operation, and
followed up his efforts as to Niagara fruit with other proposed
arrangements. On Nov. 24 he urged the Ontario Beekeepers'
Association to form an organization along the lines of the
Niagara Peninsula Fruit-Growers, Ltd. The principle of Co-
operative selling was duly embodied in a Resolution.
The Ontario Agricultural Loan Scheme. In the Legislature,
on Feb. 11, the Minister of Agriculture presented the Report of
AGRICULTURE IN ONTARIO; MR. DOHERTY'S DEPARTMENT 567
the Committee on Rural Credits as prepared by Thomas Mc-
Millan, M. H. Staples and Prof. W. T. Jackman. The 45 pages
of this document contained exhaustive information regarding
the whole question and the operation of such schemes elsewhere.
Briefly, the Committee recommended the establishment of Rural
Credit Societies, somewhat similar to those operating in Mani-
toba, and, also, of a "Savings Institution" in the nature of a
Provincial Bank which would become a reservoir for deposits
made by societies or individuals. While debarred by the Bank
Act from using the title of "bank," this Savings centre would
receive deposits, advance loans, pay interest, and otherwise act,
in the fullest sense, as a Chartered Bank, for the purposes of
patrons of Rural Credit Societies. As to these Societies, the
Report recommended some changes from the system operating
in Manitoba.
It proposed that every Society should be responsible for
passing upon the applications for loans in its neighbourhood, as
in the Western Provinces, but would have all the shares held
by farmers, themselves, instead of, as in Manitoba, where one-
half was held by farmers and the other half divided equally be-
tween the municipality and the Government: "Our object in
making this change would be to keep the Society clear of any
complication with the Government or with the municipality, and
vice versa." A further change from the Manitoba system was
one providing that, of nine Directors to each Unit, six should be
chosen by farmers and the other three by such organizations or
associations as were best calculated to understand and promote
agricultural interests. This proposed system would provide
short-term credits to the farmer for the purchase of seed, stock,
implements, fertilizers, etc. For the equally necessary long-
term credits upon which the farmer would depend for financing
permanent improvements or the acquiring of fixed assets, special
provision was proposed.
In this connection the Report reviewed the alleged defects
of the present system, with mortgages held by private indi-
viduals, and pointed out, also, the danger of any Government
assuming "the active direction of Farm Loans." It recommended
instead, "the organization of a Land Mortgage Bank to act in
conjunction with Rural Credit Societies." This bank, the Com-
mittee advised, should have a capital stock of $500,000, sub-
scribed and taken by farmers and payable in installments of
about 25 per cent. When one-half the stock had been paid in
the Bank might begin to function. By massing mortgages as
securities it could issue debentures which would be sold to
farmers and others, and the funds obtained from the sale of
these be used to make further loans. Loans, which should be
on the amortization plan, would be for periods of 5 to 30 years.
As to this, the Report stipulated that it would be unwise to begin
operations with a lesser amount than $500,000; that the maxi-
mum dividend should be fixed at seven per cent. ; that there
568 THE CANADIAN ANNUAL REVIEW
should be established from the outset a Reserve fund account
by setting aside semi-annually, from profits, 25 per cent, of net
earnings until the credit balance was equivalent to 25 per cent,
of the outstanding capital stock; that Land Bank bonds be not
tax-exempt; that the Bank be incorporated under Ontario, not
Dominion, statutes and, finally, that the Directors be "men of
large vision, of the greatest business ability, and of sympa-
thetic interest in Agriculture and all its problems."
The reasons given for this elaborate plan — a reversal in
many respects of the principles underlying Canada's existing
system of Banking — were that: (1) "We realize that the Bank
Act, enacted when Canada was a young country and much
smaller than it is to-day and when its agriculture was primitive,
was designed to serve the commercial interests"; (2) that as
Chartered Banks did not usually lend for more than 90 days, or
180 at the outside, the farmer who needed longer accommoda-
tion, could not obtain it; (3) that because the Bank Act only
mentioned farmers, specifically, in two cases, therefore, they
were excluded from all the other clauses and provisions of the
Act. The conclusion of the Report was that: (1) Legislation
should be passed to embody the foregoing principles into a sound
and carefully devised system by which Agriculture could receive
the financial assistance which it has been too long denied ; (2)
provision should be made for and encouragement given to the
formation of Rural Credit Societies as the basis upon which to
develop a safe and adequate extension of short-term credits,
along the lines outlined above."
On the 14th the Minister introduced in the Legislature 3
Bills establishing the new policy and an institution to provide
means for financing the System. The first measure, as finally
passed, was called The Agricultural Development Finance Act, 1921,
and it empowered the Provincial Treasurer to borrow money
by means of deposits received at Offices which he could open in
Ontario — the rate of interest paid not to exceed 4% per annum —
for the following purposes: (1) Loans to members of Associa-
tions under the Ontario Farm Loans Act, 1921 ; (2) Bonds or de-
bentures issued under the Agricultural Development Act, 1921
(as below) ; (3) Bonds or debentures of, or guaranteed by, the
Dominion or any Province ; (4) Bonds or debentures of, or guar-
anteed by, any municipality or School Section of the Province of
Ontario. The Second measure was termed The Agricultural De-
velopment Act, 1921, and provided for the establishment of the
Agricultural Development Board, under the Department of
Agriculture, to consist of three persons appointed by the Lieut. -
Governor-in-Council, and whose duty it was to promote Agricul-
tural development by means of loans. It was given power to
issue bonds to the amount of $500,000, and debentures on which
payment could be guaranteed by the Province with the pro-
ceeds to be used in making loans for the following purposes :
AGRICULTURE IN ONTARIO; MR. DOHERTY'S DEPARTMENT 569
(1) Acquiring land for Agricultural purposes.
(2) The erection of farm buildings essential to production.
(3) To pay off charges existing against land at the time of acquisi-
tion by the borrower under a will or by descent.
For any Loan made under the Act the Board could accept any
security it deemed fit as collateral. It was given power to ap-
point Qualification Committees, composed of at least three com-
petent persons, two of whom should be farmers, to examine ap-
plicants for loans, who might be required to appear in person
to submit satisfactory evidence: (a) That he was a British
subject, of 21 years of age, and a resident in Ontario for at least
three years; (b) that he had had at least three years' experi-
ence in farming; (c) that he was of good character; (d) that
he was actually engaged, or intended to engage, upon the land
which was the security upon which the advance was given. Con-
ditions of a loan to one person included its limitation to $12,000
and a period of S years, with a security of not less than 50 acres
of land and secured by a first mortgage on this or other agricul-
tural land. Other conditions required competent valuation of
land offered for security and the insurance of buildings ; that
mortgages under this Act were to be in accordance with The
Short Forms of Mortgages Act ; that Loans, if misapplied, should
be recovered; that additional revenues of the Board should be
transferred monthly to the Consolidated Revenue Fund.
The third measure was entitled The Ontario Farm Loans Act,
and its provisions authorized the establishment and incorpora-
tion of Farm Loan Associations — similar in most respects to the
Rural Credits Societies of the West — the capital of which should
be made up by issuing $100 shares, one to each member, with
not less than 30 members to an Association. The amount sub-
scribed was to be supplemented by an equal amount provided
equally by the Municipality and the Province. The Board of
Directors were to pass upon all loans, which would remain in
effect for the calendar year for which they were issued. These
loans were limited to a maximum of $1,000 per individual mem-
ber for such current expenditures as: (1) Purchase of seed,
feed, fertilizer and other supplies ; (2) purchase of implements
and machinery; (3) purchase of live-stock; (4) payment of cost
of carrying on farming operations and for the cost of preparing
land for cultivation. The interest charged was not to exceed 7
per cent, and the goods purchased by the borrower were subject
to lien and could be supplemented by such additional security as
the Directors deemed necessary, including mortgages and as-
signments of real and personal property. The Provincial Treas-
urer was authorized to loan money to an Association for the pur-
pose of assisting it to carry on its business, and the Minister of
Agriculture could also enter into agreements with Banks and
Loan Companies for securing moneys for the use of these As-
sociations.
Prof. W. T. Jackman defended these proposals in an ad-
dress at the University of Toronto on Feb. 16, and pointed out
570 THE CANADIAN ANNUAL REVIEW
that, under present conditions, the individual farmer had only
himself to depend upon, and that a Bank looked upon security as
the first consideration in making a loan. The aim of Rural
Credit Societies was to eliminate risk as far as possible by
having a group stand back of the loan granted to the individual
farmer, and the best way this could be accomplished was through
the organization of Rural Credit Societies. The system had
been tried out and proven in Europe, Asia, in the United States,
and in parts of Canada. He intimated that the Government in-
tended opening deposit centres at which they would pay interest
at the rate of four per cent., and give checking privileges as
with a chartered bank. Deposits would be taken, not only from
people living in the country, but from people living in villages,
towns and cities, and these deposits used for the purpose of
making loans to farmers under the new System. The legisla-
tion passed in due course without serious opposition, or any
division of the House, and the three Acts received the Royal
assent on May 3rd.
On Aug. 18 the appointment was announced of A. G. Farrow,
Oakville, a well-known agriculturalist, a Director of the U.F.O.
and Live-stock breeder, as Chairman of the Agricultural De-
velopment Board and chief administrative officer of the new
short and long-term loans to farmers. Mr. Doherty, in stating
the appointment, announced that the policy of the Government
was to proceed on safe and sound lines : "While it is hoped that
the additional facilities will be of benefit to Agriculture, every
necessary step will be taken to fully safeguard the interest of
the Province. The administration of the two Acts providing
for two separate systems, are combined under one administra-
tive body instead of two, as in other places." The popular name
of Provincial Savings Bank was bestowed upon this institution
as it developed. Meantime, Mr. Doherty claimed, at Vineland
on Aug. 22, that the present Banking system was entirely un-
suitable for agricultural requirements and criticized the existing
system of borrowing, through brokers, the money needed for
School, Civic or Provincial purposes: "Let us cut these un-
necessary middlemen and secure the money direct from the
people."
The Act went into force on Oct. 4, and on the 12th M. E.
McKenzie was appointed Director of Sub-Treasury Branches
for the Province and to manage the Deposit system branches
announced in connection with the Rural Credits scheme. On
Dec. 10 another step was taken and nine cities, in addition to
Toronto, were selected by the Ontario Government Savings
Bank Department as strategic points at which to open up branch
deposit institutions in connection with the new banking system ;
these cities were London, Ingersoll, Woodstock, St. Catharines,
Guelph, Ottawa, St. Thomas, Kingston and Hamilton. There
was, of course, opposition expressed to this policy but not a
great deal of it in public. Some financial journals criticized
MR. BIGGS' POLICY^AND THE HIGHWAYS OF ONTARIO 571
the scheme and individual financiers deprecated it as a doubtful
experiment. The chief reasons given were (1) the establish-
ment of Banking facilities under Government control which
would involve a large and growing staff of highly-paid and ex-
pert officials to provide services already given by the Banks ; (2)
the claim that the Government would not be able to get money
on deposit in preference to the Post Office Savings department
or the Banks of the country, unless a higher rate of interest was
paid by the Province than was offered by the other institutions ;
(3) the statement that if the Province offered a sufficiently high
rate to induce depositors to change their deposits to the Gov-
ernment, the cost of business and management would render
loaning at a low rate of interest absolutely impossible — unless
the general tax-payer were called upon to pay the difference ;
(4) that if money did come in freely a final result would be seen
in the Government lending these moneys, or a portion of them,
to itself.
The Hon. F. C. Biggs was Minister of Public
The High- Works and Highways, but during his two years in
OnY* *°f d t*ie Post ms public energies were devoted most
Mr *Bices™ largely to the latter subject. In the fiscal year
Policy; Min- 1920 (Oct. 31) the Department of Public Works
eral Produc- expended $1,955,951, of which $1,239,824 went to
tion of 1921. public buildings, $402,279 for maintenance of Gov-
ernment buildings in Toronto and $313,846 on the
Engineers' branch — covering, chiefly, Northern Ontario with
construction of roads and bridges and drainage of lands. The
1921 figures were not yet published (June, 1922) at the time of
writing, but R. P. Fairbairn, Deputy-Minister, issued a state-
ment showing that moneys expended since Confederation, in
1867, were $27,004,052 upon Public buildings, $4,581,398 upon
Improvements to Inland navigation, $9,813,113 upon Colonization
and Immigration, $13,182,877 upon good roads and Highway
improvement (prior to formation of Highway Department), and
$10,257,258 upon aid to Railways— a total of $74,838,701.
The latest available Report of the Highway Department was
for 1919, and in that year the total expenditure upon County
Roads, of which there were 9,953 miles, was $816,041 for main-
tenance and $2,623,719 for construction — there had been ex-
pended in 17 years a total of $17,000,000 by the Counties of
which the Province repaid 6^2 millions; the Provincial High-
way system was under way with 422 miles constructed at a
cost of $1,244,002 and comprising the main road from London
via Ingersoll, Woodstock, Paris and Brantford to Hamilton;
from Hamilton via Grimsby and St. Catharines to the Niagara
River at Queenston; from York County (River Rouge) easterly,
following the main road along Lake Ontario and the River St.
Lawrence to the Quebec boundary; and from Prescott to Ot-
tawa. The Dominion Government had set aside $20,000,000 to
572 THE CANADIAN ANNUAL REVIEW
aid Highway construction and the Ontario share was $5,800,000.
One phase of Mr. Biggs' energetic effort* for 1921 was to de-
velop the use of the Dominion contribution to its full extent and
to provide Ontario's share (60 per cent.) of the expenditure. In
1920 he had elaborated plans for the construction of 1,824 miles
of Provincial Highway with an estimated expenditure of $14,-
000,000 in two years; assisted by W. A. McLean, his Deputy-
Minister, and backed by the Government and Legislature, he
developed and extended this policy in 1921 ; part of the expendi-
tures were included in the arrangements with the Dominion.
Of course there was criticism, and a rather striking one
was that of Gordon C. Wilson (Went worth) in the Commons on
June 1st when he accused the Ontario Minister of building the
Hamilton-Brantford highway at an extravagant expense with,
in one section, 4,100 feet constructed at a cost of $123,850; he
charged, also, that Mr. Biggs, in connection with a certain con-
tract, went to a truck dealer named Parkin in the town of
Dundas and, without advertising for tenders, awarded the con-
tract to him for $117,500; he alleged that on the Hamilton-Kit-
chener roadway the Minister had commenced laying the bithu-
litic pavement from the gate of his own farm near Dundas and
that he had built other roads so as to specially favour the town of
Dundas. Before concluding his speech, Mr. Wilson burst into
rhyme about "roads to the right of him," etc. ; Dr. J. W. Ed-
wards, who continued the criticism, also added rhymes about
"the Roads that Biggs Built," which created great amusement.
The excuse for this discussion was the Dominion payment of
40 per cent, of the expense of these Highways.
Mr. Biggs replied, vigorously, on June 11, with an unquali-
fied denial while declaring the statements to be "spurious and
misleading." He commenced by saying that : "Those who are
familiar with the Department of Provincial Highways will
realize that the present road-building policy is but an elabora-
tion of the one laid down by the late Government. Now it is
being pursued with vigour." He then pointed to the peculiar
position of Wentworth in the Province, as being near to Hamil-
ton, at the end of Lake Ontario, and therefore a radiating point
for Provincial highways through a large district. Wentworth
County provided the gate-way to Hamilton. The geographical
features were also unusual, with high hills and marsh lands lead-
ing out of the city. He declared that the cost of road construc-
tion was higher in Wentworth than in other Counties because
there was no gravel of any kind, which necessitated long hauls ;
because, also, of the hill country and the numerous waterways
compelling "cuts and frills," and many bridges.
As to the personal charge of putting a road through his
own property, Mr. Biggs said that it was not a Provincial high-
way, but a County highway; that the first effort to open the
road was made in 1917 by the County Council and approved by
*Note. — See Ontario Section of the 1920 volume of The Canadian Annual Review.
MR. BIGGS' POLICY AND THE HIGHWAYS OF ONTARIO 573
the Hearst Government in 1918, before he was even a member
of the Provincial Legislature. The bridge which Mr. Wilson
said was built to provide a "cattle run" for Mr. Biggs' farm
was, also, built by the County, and was really a bridge over a
creek, and of no use to him. As to the commencement opposite
his farm, the Minister stated that the plans of the Provincial
Highway engineers called for the construction of the Hamilton-
Dundas-Galt highway in divisions, and that the second division
started from Christie's Corners, where he lived and had lived
all his life, to Dundas ; work on this section was commenced at
the Corners, and the contractors worked from there toward their
base of supplies — Dundas. On the third division the work also
commenced at Christie's Corners, because the base of supplies
was located at Rockton, where the Government owned a splendid
quarry. As to favouring his own County, Mr. Biggs stated that
Wentworth was 8th in the list of Counties with only 64 miles
of highway under construction.
At Brampton, on July 21, Howard Ferguson, the Conserva-
tive leader, reiterated the charge of Highway extravagance
and the statement that: "Although the Minister of Public
Works spent about 7^ millions last year on roads, I would like
somebody to tell me where, outside of the County of Wentworth,
there are any good roads !" He contended that, already, Mr.
Biggs had entered into Highway agreements covering 541 miles
of Provincial Highway and exhausting about $4,000,000 of the
Dominion appropriation. On the same basis the balance of
Ontario's share would provide Dominion subsidy for about 271
miles more, so that the entire amount available to Ontario from
the Dominion would be exhausted on a stretch of 812 miles.
There was, therefore, 1,000 miles of Provincial Highway for
which there would be no Dominion assistance. The Minister's
answer to these and other criticisms was, chiefly, that it would
all turn out right in the end, and that many and varied bits of
separate construction were under way and could not be judged
until they formed parts of a completed whole.
As to specific matters, he wrote a further reply to Mr. Wil-
son's charges, on Sept. 23, and stated that, practically, all De-
partmental equipment was bought in Canada and no overhead
expense, other than field engineering, was charged to Highway
construction ; that various amounts, according to the class of
machinery, were written off equipment-values for depreciation ;
that no objection had been raised by the Dominion Department
of Highways to the change in specifications of the Hamilton-
Brantford road. Before the Public Accounts Committee (Apr.
1st) of the Legislature Roy Reynolds was summoned to testify
in connection with the sale to the Government of $117,000 worth
of trucks by L. C. Parkin, a Dundas garage owner, whom he had
recently sued for recovery of commissions. He said that he had
helped to arrange a $3,000 cash-or-car bonus on account of the
sale in which, he understood, the Minister was to share. Later,
574 THE CANADIAN ANNUAL REVIEW
he stated, in reply to definite, point-blank questions by Hon. Mr.
Drury, that at no time, or in any manner, had Mr. Biggs ap-
proached him regarding a bonus or bribe ; he had in no way
been assured that the Minister would accept anything that might
be offered to him.
Parkin, on his part, strongly resented this evidence and
claimed (Apr. 3) that at no time or place was any proposal of
a car or a cash present for Mr. Biggs made : "I never mentioned
such a thing, and I want to say that Mr. Biggs never mentioned
such a thing either." Mr. Biggs, on Apr. 6, testified as to the
matter. He explained his acceptance of the Parkin tender for
12 trucks on the ground that the price was as low as could have
been secured anywhere in Canada, and that, price-level being
assured, he saw no reason why "a young Dundas man beginning
in business" should not secure the contract from the Govern-
ment. He categorically denied Reynolds' statements. The com-
ment of the Toronto Globe (Apr. 4) was that "there is not a
scrap of evidence" that Mr. Biggs was aware of these bonus
proposals.
Meanwhile, the Minister had continued his active work of
supervising road building. On Jan. 7 he spent the day listening
to the pleas of Deputations from various sections, who request-
ed route changes in the proposed programme or additional fin-
ancial assistance; on the 22nd he stated to the Press that over
two million dollars' worth of road and culvert work was being
hurried along to assist in meeting unemployment conditions;
tenders which, ordinarily, would not have been dealt with until
March were under consideration and allotment had been made
of more than half a million dollars' worth of culvert work, with
selection of the probable successful tenderers on $1,600,000
worth of road work. On Apr. 16 it was announced that the pro-
posal of the Theodore Roosevelt Highway Association to link up
Ontario with the Transcontinental Highway from Portland,
Maine, to Portland, Oregon, in memory of the former President
of the United States, was under consideration, but that the De-
partment had positively refused permission to have the poles
along the Ontario part of the route branded with a "T. R." Fol-
lowing the Wilson criticisms Mr. Biggs, on June 16, took a
party of representative people over the Provincial Highways in
the Hamilton-Dundas district. They visited the various points
under discussion, including the Minister's farm.
Other incidents of the year included a Deputation of 100
leading citizens from Simcoe, Dufferin, Bruce, and Grey Counties
which asked the Minister (July 26) to take over as a Provincial
highway the through-road connecting these Counties, and were
told that the matter was not yet practicable ; Mr. Biggs' speech
at the Exhibition luncheon, on Aug. 29, in which he expressed
strong belief in the possibilities of the motor truck, as an aid to
farmers in the carrying on of their work, and in the development
of the rural parts of the country, and earnestly urged improve-
MR. BIGGS' POLICY AND THE HIGHWAYS OF ONTARIO 575
ments in the Highways, which would make it much easier
for the farmers to get their produce to market via the motor
truck ; a statement in the press, on Sept. 12, which showed the
immense variety and number of isolated bits of road-work under
way from Toronto to the Quebec boundary; the desire express-
ed by Mr. Biggs at a Barrie U. F. O. meeting, on Sept. 22, that
people should not form opinions on half-finished bits of road,
and his claim that the Provincial Highways were designed to
carry 90 per cent, of the traffic, and to serve all the people of the
Province, both urban and rural, and that permanent roads would
mean better transportation, increased marketting facilities and
reduced cost of upkeep for both roads and vehicles.
At this Barrie meeting the Minister predicted that in a few
years touring motorists would be spending at least $50,000,000
a year in Ontario — much of it in food and to the great gain of the
farmers. Whitby, on Sept. 29, celebrated the completion of 1^4
miles of a splendid local motor-roadway, and Mr. Biggs fore-
shadowed the early taking over of a road from Whitby to Lind-
say, a 45-mile stretch, as a Provincial highway, so that touring
United States motorists might find their approach to the fine
chain of the Kawartha Lakes facilitated. The Minister con-
gratulated Whitby on being the first municipality to make a
contract with the Highways' Department under the co-operative
scheme for meeting costs. A part of the Dundas Street High-
way between Toronto and Hamilton was officially opened by
Mr. Biggs on Oct. 1st, and he told the gathering that if it did
for Dundas Street what the Toronto-Hamilton Highway had
done for that route, the value of the land would be doubled five
times. He also stated that the cost of building roads had in-
creased ; cement and stone were much higher than they used to
be, and labour had almost doubled.
On Nov. 22 it was announced that the Ontario Government
had decided to abolish the Toronto-Hamilton Highway Com-
mission, and that, as the Highway was fully completed, the
time had arrived for making the work of the Commission a part
of the duties of the Ontario Highways Department. At the same
time, it was officially stated, arrangements had been completed
for construction of about 75 miles of roadway throughout On-
tario at a cost of $4,500,000 and to include 39 miles of concrete
pavement, 25^4 miles of asphaltic concrete and 12 miles of bitu-
minous penetration. In Toronto, on Dec. 14, the United Farmers
of Ontario passed a Report of their Road Committee, which de-
clared that : "The Provincial County Roads should be incorpor-
ated in the Provincial Highways System, and the County Roads
should revert to the Municipalities or Townships." Briefly
stated, the grounds for this conclusion were as follows: (1)
The duplication of road machinery; (2) the duplication of road
officials; (3) the unfairness in distribution of improvement and
maintenance under the present County system; (4) the addi-
tional economy found to result from direct Township super-
vision of township roads.
576 THE CANADIAN ANNUAL REVIEW
Mining in Ontario; The Porcupine and Cobalt. The Depart-
ment of Mines, with the Hon. Henry Mills as Minister, and
T. W. Gibson, the experienced Deputy-Minister, maintained its
reputation in 1921 for excellent publications relating to this
important interest of the Province. The monograph by A. G.
Burrows relating to Gowganda and other Silver Areas of the
North, that by P. E. Hopkins dealing with Ontario Gold De-
posits, that of E. S. Estlin on Natural Gas and Oil Field Opera-
tions, and that of A. A. Cole dealing with the Mineral Areas
touched by the T. and N. O. Railway, were especially useful.
As to Gowganda, an area of silver-bearing diabase situated in
the south-west part of the District of Temiskaming and forming
part of the Timagami Forest Reserve — the Lake being about 50
miles from Cobalt — shipments of a kind had been made from the
district since 1910.
As Mr. Burrows pointed out, they were chiefly from prop-
erties in the vicinity of Miller Lake and west of Gowganda
Lake, together with a few isolated shipments from outlying
townships. The great preponderance of ore came from north-
west of Miller Lake, and several lots of high-grade ore were
shipped from the Mann ridge, west of Gowganda Lake. From
1910 to 1912 the Millerett mine was the chief single producer —
the ore coming from a shoot in the conglomerate which produced
500,000 fine ounces. The Miller Lake-O'Brien also supplied a
good deal of silver ore and produced continuously from 1910 on-
ward. The latest property to make shipments was the Castle —
ore being obtained not only from the diabase sill but from the
Keewatin.
The gold resources of the North country were proving
notable at this time, with the Hollinger Mines as one of the
great producers of the world. There had been gold discoveries
in Ontario tracing back for 50 years — Lake of the Woods dis-
trict, around Rainy Lake and neighbouring areas, on the North
Shore of Lake Superior. Between 1905 and 1918 a series of dis-
coveries and mines resulted from the Cobalt prospecting work,
with Porcupine, Kirkland Lake and Swastika the best known.
As P. E. Hopkins stated in his Report: "Porcupine is by far
the largest producer — the principal mine, the Hollinger Con-
solidated, being one of the great gold mines of the world. On-
tario now leads the other Provinces of Canada, and every State
in the United States, excepting California, in production. There
is every reason to believe that its gold production will continue
to increase for some time." Up to 1911 gold mining in Ontario
was, on the whole, not profitable. From then the industry flour-
ished, and the 1913 production, $4,558,518, almost equalled the
entire output up to that year and from the time gold was first
found in the Province in 1866. In 1920 the gold production ex-
ceeded the Silver output for the first time since Cobalt was dis-
covered in 1903.
MINING IN ONTARIO; THE PORCUPINE AND COBALT 577
The total production, from 1866 up to the end of 1921,
was $87,797,553, Of which $83,000,000 had been taken out of the
Porcupine and Kirkland Lake areas (chiefly) since 1912. The
preliminary official figures for 1921 were $14,624,085 — the great-
est gold production on record in Ontario. During the year the
situation for mining companies improved greatly. Labour was
cheaper, supplies were cheaper, and gold commanded a premium ;
owing to Ontario's production, Canada was in 1921 the only
country in the world to show an increased output of gold. Tak-
ing the Mineral industry, as a whole, the production of 1921 was
$48,128,387, in comparison with $68,456,781 in 1920, $58,883,916
in 1919, and $41,976,797 in 1911. The total metallic product
showed a marked reduction with gold the only advancing feature
of importance and a general total of $28,154,500 compared with
$48,282,000 in 1920. The following table indicates the situation :
Ouantitv
Value
Product: Metallic
1920
1921
1920
1921
Gold
oz.
565,283
709,509
$11,686,043
$14,624,085
Silver
oz.
11,065,415
8,412,059
10,873,496
5,497,160
Platinum metals ,
oz.
19.056
915
1,996,535
51,060
Copper
Ibs.
6,825,772
3,070,719
1,041,994
356,708
Nickel, Metallic and Oxide
Ibs.
15,906,263
6,832,166
5,003,631
2.110,750
Cobalt, metallic and oxide
Ibs.
736,932
188,272
1,603,736
452,646
Other Nickel and Cobalt Compounds....
Ibs.
161,442
108,814
16,991
114,069
Lead, pig
Ibs.
2,232,253
3,570,222
179,714
190,843
Copper in matte exported (b)
tons
11,715
3,686
2,928,750
737,142
Nickel in matte exported (b)
tons
21,371
4,850
10,685,500
1,939,851
Iron-ore and briquettes (c)
tons
68,616
100
60,958
459
Iron, pig (d) :
tons
67,164
82,838
2,204,205
2,079,729
Total Metallic
$48,281,553
$28,154,502
Non-Metallic:
Arsenic, crude and white
Ibs.
3,781,389
2,982,525
432,434
233,763
Clay products
4,735,154
3,885,199
Cement, Portland
bbls.
2,035,594
2,723,072
4,377,814
6,425,266
Feldspar
37,335
15,506
268,295
114,059
Gypsum, crushed, ground and calcined.
tons
74,707
84,765
404,162
433,053
Lime
bush.
4,982,912
2,610,912
1,799,763
1,172,680
Natural Gas 1,000 cu. ft.
10,545,000
8,590,000
3,163,500
2,953,000
Petroleum, crude
bbls.
181,750
172,859
724,145
466,716
Salt
bbls.
206,612
149,599
1,544,867
1,509,287
Sand And Gravel
.cu. yds.
2,162.241
1,412,956
1,390,704
668,098
Sand-Lime brick
1,000
27,703
407,766
456,700
Stone, building, trap, granite, etc
3,944,972
1,812,863
Sundries
1,601,519
423,501
Total Non-Metallic
Add Metallic
Grand Total...
24,795,095 20,554,185
48,281,553 28,154,502
$73,076,648 $48,708,687
There were some notable incidents of expansion in the gold
fields during 1921. The Wright-Hargreave mines at Kirkland
Lake started a 175-ton mill in May and paid an initial dividend
of 5 per cent, at the close of the year ; the Ontario-Kirkland, an-
other new producer, operated a 110-ton mill in December; the
settlement was announced of legal and financial complications
at Larder Lake by the organization of the Canadian Associated
Gold Fields Mining Co., a $30,000,000 concern, to control the
properties of the Associated Gold Fields and other Companies ;
the production of gold in the Porcupine region totalled $13,-
095,630 and in that of Kirkland Lake $1,524,851; in the Porcu-
pine the gold product of the Dome in 1921 was $2,280,237, of
the Hollinger $8,999,796, of the Mclntyre $1,815,597; the Allied
578 THE CANADIAN ANNUAL REVIEW
Porcupine Gold Mines, Ltd., was incorporated with a $5,000,000
capitalization and acquired a group of properties lying in the
eastern part of Whitney township; exploration work in the
Night-Hawk Lake district was undertaken by the Collinan-Mc-
Kay Exploration Co., and A. Mitchelson and Co., Ltd., another
British concern, re-organized the Davidson Consolidated Gold
Mines, Ltd., with new capital and large expected development.
The Dome Mine in the year of Mch. 31, 1921, yielded bul-
lion worth $1,946,403 with an average yield per ton, milled, of
$7,111, with operating and maintenance expenditures of $1,239,-
508, an excess of current assets over current liabilities of
$1,539,161 and an increase in total assets to $7,229,977. The Mc-
Intyre-Porcupine Mines, Ltd., had a record for the year of
June 30 which showed net profits transferred to Surplus of
$815,530, total net earnings of $1,088,513, an estimated ore re-
serve of 624,422 tons worth $6,392,394, operating costs of $935,-
440, total assets of $6,558,340. In the Kirkland Lake district
surface work on the Lebel-Lode uncovered a shattered zone 300
feet wide, in which numerous quartz veins were found and, in
the Larder Lake district, the Crown Reserve uncovered a 40-
foot width of ore assaying $4.00 per ton with diamond drilling
resorted to in an effort to find other and richer lenses.
It was stated at the close of this year that the Hollinger
Consolidated Mines had taken $40,000,000 of gold from an area
lying within 800 feet of surface and that another 40 millions was
in sight; that in addition to the great possibilities of the Mc-
Intyre-Porcupine which Saturday Night (Dec. 3) put at $250,-
000,000, the Porcupine V. N. T., the Schumacher, the Pleaurum,
the Newbray and the Rochester — in the Hollinger-Mclntyre
section — showed rich veins of ore, making, with the Dome and
its subsidiary properties, the greatest gold field in the world.
The 1921 Report of the Hollinger Consolidated Gold Mines, Ltd.,
showed an income from gold and silver produced of $10,031,050,
compared with $6,939,628 in 1920, which was the best previous
total.
Adding interest on investments and income from other
sources of $283,464 the total earnings were $10,314,515. The
general charges totalled $459,827, mining charges $3,194,844,
and milling charges $1,568,183 — making total operating charges
of $5,222,855; the operating profit was, therefore, $5,091,659
compared with $4,018,282 in 1920. The Report stated employ-
ment of 2,000 men, satisfactory conditions as to labour, a hold-
up in production and profits owing to an insufficient supply of
Electric energy, ore reserves of $36,664,154 with probable ore
in sight which made the total $41,719,670, capital liabilities of
$25,000,000. In his annual address at Montreal on Mch. 8, Noah
Timmins, President, stated that in the 9J/2 years of operation,
the Company had received from gold and other sources an in-
come of $50,000,000 and paid $16,558,000 in dividends. Par-
ticulars were as follows :
THE UNITED FARMERS OF ONTARIO
579
Holling.r Mines
1912
1913 .
Gross Income
. $ 924,571
2 493 971
Profits
$ 621,001
1 503 822
Dividends
$ 270,000
1 1 70 000
1914
2 764 130
1,611,058
1,170,000
1915
4 285 786
2 477 044
1 720 000
1916
5 285 862
2 856 409
3 126 000
1917
4 27 1 260
1 820 4 1 4
738 000
1918
5 908 327
2 588 563
1 230 000
1919
7 063 099
3 840 482
1 722 000
1920
7 162 611
4 018 282
2 214 000
1921
10 314 515
5 091 659
3 198 000
Total
$50.474.132
$26.428.734
$16.558.000
Throughout the gold fields the demand for Electric power
at this time was very great ; all the annual meeting addresses
dwelt upon the urgency of Hydro-electric development in the
North. Meanwhile, Cobalt had fallen somewhat from its high
place with a silver production, in 1921, of $5,413,520 as against
$10,654,471 in 1920; the total production from 1904 to the end of
1921 had been $198,099,336; the drop in price of silver from an
average of 100 90 cents in 1920 to 65 65 in 1921 had something
to do with the current decrease, as production only fell from
10,846,321 ounces to 8,279,320 ounces. The dividends of the
year — payable on Coniagas, Kerr Lake and Nipissing — were
$1,985,000 and the total on all the silver mines at Cobalt from
the beginning to the end of 1921 was $84,388,185 on a capital in-
vestment of $49,006,308. Incidents of the year included the
statement of the Nipissing Mines, Ltd., which showed net profits
of $969,199 and a net surplus of $3,851,242 with dividends of
$935,000 with, also, the discovery of a rich vein and the blocking
out of 500,000 ounces in a space of 70 feet.
The United Farmers of Ontario. This Ontario Farmers
organization found many complications along its pathway during
the year. Its close affiliation with the political interests of
the Province brought much publicity and inevitable criticism;
its organ, The Farmers' Sun, handled the Manufacturers' Association and
Industrial organizations, generally, without gloves ; it was conspicuous in
the General Elections as an opponent of the Dominion Government ; the
aggressive policy of its Secretary, J. J. Morrison, at times brought it
into conflict with the Drury Government and the U. F. O. members in
the Legislature. By a vigorous propaganda, which was both verbal and
printed, the U. F. O. sought to increase the scope and influence of the
Agrarian movement in the Province and to introduce its principles into
the towns and cities as well as country districts. Mr. Morrison tour-
ed Ontario incessantly throughout the year, speaking at Canadian Clubs,
public and church meetings, Y. M. C. A. gatherings, summer picnics, and
gatherings of the Farmers and Farm Women and young people. He,
everywhere, emphasized the necessity of organized political action on
the part of rural constituencies and claimed that only in the recognition
of their own class-consciousness could the U. F. O. realize their true and
effective purpose.
It may be mentioned that just before the Elections, in October, a
change was announced in the form of the Recall — so far as the U.F.O.
was concerned — and that instead of the resignation being dealt with by
the Executive Committee of the Association in each riding, it would be
held by the Executive subject to a special meeting of the Convention
which originally nominated the candidate. When causes of dissatisfact-
ion arose they would be placed before this Convention for decision ; if
against the sitting member he would be expected to vacate his seat. The
580 THE CANADIAN ANNUAL REVIEW
U.F.O. Association met, in its 8th annual Convention at Massey Hall,
Toronto, on Dec. 14-15 with President R. W. E. Burnaby in the chair.
In his address Mr. Burnaby declared the U.F.O. to be "strong in mem-
bers, strong financially, strong in prestige and influence". This was be-
cause : "We stand by our principles, looking neither to the right nor the
left when a principle is at stake." The 65 members returned to Parlia-
ment by the Farmers as a whole was mentioned with pride and the fact
stated that Educational, Commercial and Political questions were inter-
woven into the life of the people and of this organization. Referring to
the Co-operative Company and the attacks upon its financial policy, he
said: "As I view the situation, these two organizations are so inter-
woven that the success of one depends upon the success of the other.
You cannot separate them. Help the Company in every way possible.
We need this co-operation as never before. It is vital to our move-
ment." In the ensuing discussion some exception was taken to this latter
statement.
Mr. Morrison followed, with the Secretary's Report, and gave con-
siderable space to the condition of the United Co-operative Co. ; he stated
that the number of new Clubs organized this year was 122, and that the
total number of Clubs was 1,318 and the membership, approximately,
40,000. As the estimated membership at the first of the year was 60,000
there would seem to have been a decrease in numbers. There were a
great many Resolutions presented, discussed and passed, or shelved; one
of the most important declared that the New National Policy and the
National Progressive Party must be maintained and that: "This Con-
vention firmly believes it is in the interest of Canada that the National
Progressive Party should remain intact and devote itself earnestly, in
the next Parliament, to effecting by legislation the recommendations
upon which it was elected."
J. B. Leyert, a rising member of the U. F. O., made a strenuous
speech in this connection and as to influences, seen and unseen, which,
he claimed, were being used to discredit the movement. He declared
that: "There are a quarter of a million voters in Canada who have lost
confidence in the ballot ; they believe in direct action — revolution. There
will be riots and bloodshed in this country if something is not done to
restore confidence in the ballot." The inference was that the Farmer-
Labour allies must be returned to power. Attempts made to raise the
Protection issue, as to Food stuffs, and the Prohibition question, along
lines of Government control, were met by such stern speaking that even
the movers failed to vote for their motions.
A proposal that none but citizens of Canada be elected officers of the
U. F. O. organization was tabled ; a Resolution was unanimously passed
declaring that "in view of the large National Debt and need of economy
in public affairs, be it resolved that military training in the Public
Schools be discontinued and that the Dominion Parliament and Ontario
Legislature discontinue financial aid thereto, and, further, that all Mili-
tarism be eliminated as far as possible." Miss Agnes MacPhail, M.P.,
who was given a great reception, suggested that the Secretary be elected
by the Convention instead of being appointed by the Directors. It
would, she declared, be easier to railroad something through a body of
14, than through a Convention such as this. After a long debate the
power of appointment was left to the Directors. M. H. Staples, the
Educational Secretary, dealt with his work in arranging debates and pro-
grammes for U. F. O. Clubs and the Short Course for farmers at the
University. R. W. E. Burnaby was re-elected President and W. A. Amos
Vice-President by acclamation. The following Resolutions, in addition
to those already dealt with, were passed:
1. Endorsing the action of President Harding in calling the
Washington Dis-Armament Conference and looking forward to a
time of International peace.
THE UNITED FARMERS OF ONTARIO 581
2. Demanding that the Bell Telephone rates be reduced to those
prevailing before the last increase was granted and declaring that
the U. F. O. would render all help possible in having the new Par-
liament eliminate the "penalty clause" from the Railway Act, which
governed the Telephone Company and checked the development of
long-distance connection with independent companies.
3. Urging on local Clubs the advisability of forming athletic
clubs and the organization of debating and reading associations for
the discussion and study of National and social questions of current
interest which would stimulate the support of the younger members.
4. Suggesting that members of the Legislature and House of
Commons be asked to send to local U. F. O. Clubs a copy of each
Bill introduced in those bodies as soon as printed, and, also, a month-
ly report of how their votes were recorded on the various Bills and
Resolutions before the House.
5. Calling on the Ontario Legislature to amend the Game Laws
of the Province so as to change the opening of the season from
Nov. 5 to Nov. 20, and from 15th Nov. to Dec. 1st; to prohibit hunt-
ing with dogs.
6. Changing the date of the annual U. F. O. Convention to pre-
vent its connection with the County Council meetings on Dec. 15 of
each year.
7. Pledging the U. F. O. against any attempt to divide the
people of Canada along race and creed lines and to use every effort
to unite all on the broad basis of Canadian citizenship.
8. Extending congratulations to Hon. T. A. Crerar on the suc-
cessful outcome of his efforts in the Dominion election campaign
and also pledging unwavering support to the U. F. O. in the avoid-
ance of entangling alliances with either of the old Parties, and in
following in Parliament the course mapped out during his appeal to
the people of Canada.
9. Urging increased efforts to extend the circulation of the
Farmers' Sun.
10. Requesting the Government of Ontario to secure the enact-
ment of legislation providing for a surtax on all unoccupied wild
lands held by private owners.
11. Declaring that the Indians of Canada should benefit through
the Good Roads policy of the Province and that Reserves should
receive their just part of the improved highway system; also that the
system of rural mail delivery should be equally distributed; and
that the equal use of the franchise, with all other citizens of Canada,
be given to the Indians.
12. Claiming that charitable grants made by the Provincial Gov-
ernment to relieve City unemployment should be equally available
for needy citizens in all parts of the Province, and that in no case
should aid be given where opportunity of employment had been re-
fused.
13. Expressing dissatisfaction with the new Rural Credits Bill,
on the part of the Northern Ontario delegates as being too limited,
and that it be amended to provide for the loaning of money for
paying off existing farm encumbrances.
14. Asking the new Government at Ottawa to remove the ban
from all publications save such as were an offence against morals.
15. Urging the repeal of the Vacant Land Cultivation Act of
1920 as operating in direct conflict with agricultural interests.
Great attention was paid in the Association to the young men and
the reports of Young People's U. F. O. organizations ; about 125 young
people were present and they held a separate meeting and organized as
582 THE CANADIAN ANNUAL REVIEW
the United Farmers' Young People of Ontario with Mrs. Frank Webster,
Oakwood, as President, W. R. Shields, as Vice-President and Miss L. D.
Duff of Toronto as Secretary.
The United Farmers' Co-Operative Company. This organiza-
tion had some stormy experiences during the year— apparently
inevitable where politics and business get mixed up in one big
Association. Its finances were seriously and publicly attacked, chief-
ly by Dr. A. E. Farewell of Oshawa, who was well-known as a Liberal
and, also, as a shareholder in the Company. Throughout the year
there had been rumours as to financial trouble and criticisms by Dr.
Farewell and others. On Nov. 9th A. A. Powers, President, issued a
statement that stock-taking was under way; that the Company had
suffered a loss in its storekeeping — mainly a matter of the re-valuation
of stock, due to the decline in a falling market; that the Company had
done a business of about $20,000,000 in the past year and that the Direct-
ors were confident of its future.
On Nov. 9 Dr. Farewell and about a dozen shareholders met in
Toronto with Mr. Morrison, Secretary of the Company, present, and
discussed the situation. The chief complaints were that the Secretary
took part in politics as well as business, that the Directors were not
conmetent to handle the concern, and that much money was being lost
or had been lost in the year. On Nov. 23rd Dr. Farewell fyled a peti-
tion at Osgoode Hall, asking for a declaration that the Company was
insolvent, that it be wound up and a temporary liquidator be appointed.
The statement sworn to by the petitioner dealt in the first four clauses
with the identity of the Company and its capitalization, the fifth de-
clared that "the facts and circumstances relating to the subscription for
and payment of stock" should be investigated. Dr. Farewell added a
number of other statements in succeeding clauses, and declared that, as
a shareholder to the extent of $500 in the Company, he came to Toronto
in November, 1921, and interviewed the President, A. A. Powers, with
reference to certain information he had received.
Mr. Powers, he alleged, admitted that losses in the operations of
the Company during the current year might amount to $300,000, but
gave no definite information as to the manner in which these losses had
occurred. An examination of the list of Shareholders, then made, showed
the capital stock held by the following Directors : A. A. Powers, Presi-
dent, one share; Col. J. Z. Fraser, Vice-President, one share; R. W. E.
Burnaby, one share, on which 50 per cent, had been paid; Elmer Lick,
Director, five shares ; Robert H. Ashton, Director, ten shares, of which
50 per cent, was paid up; J. J. Morrison, Secretary-Treasurer, eight
shares. Dr. Farewell then quoted Mr. Lick, of Oshawa, to the effect
that the loss in Stores operated by the Company was $200,000, and that
the loss in the Egg and Poultry department was between $30,000 and
$40,000. Paragraph ten amplified the statement regarding losses, which
Dr. Farewell claimed was made to him by the President. He was in-
formed that General Wholesalers, Ltd., of which the U. F. O. Co-
operative held all the issued stock, had furnished supplies to the Co-
operative stores, and that the loss in this branch of the Company's
business exceeded $100,000. It was further alleged that the Secretary-
Treasurer devoted most of his time to politics.
Following this action R. H. Ashton, a Director of the Company, ap-
plied for an injunction against the ensuing annual meeting of the Com-
pany on the ground that insufficient notice had been given and this Mr.
Justice W. E. Middleton granted on Dec. 9. The point was a technical
one and it was claimed to be too late to notify the 20,000 shareholders
not to attend such a meeting. At the U. F. O. Convention (Dec. 14)
Mr. Morrison vigorously attacked the Toronto Telegram and the "big
interests" for defaming the Company; declared that the effort to pre-
maturely stage its affairs on the eve of the Election, and just before the
THE UNITED FARMERS OF ONTARIO 583
annual meeting, was apparent and needed no explanation; stated that
the latest attempt at injury was by a Director who had lost more money
for the Company than all other men combined with, also, a personal
indebtedness to the Company which remained unpaid. At the Conven-
tion J. B. Levert, R. J. McMillan, S. J. McDonald and Elmer Lick all
stated that Dr. Farewell had privately declared that his object in bring-
ing up this matter at this time was to defeat R. W. E. Burnaby in
North York.
The Shareholders met on Dec. 13, though not as a legal annual meet-
ing; Gordon Waldron, K.C., Solicitor of the Company, was Chairman and
H. B. Clemes, General Manager, submitted an elaborate statement — the
first since his appointment; after reviewing certain losses he stated
that all the Departments had turned the corner and, in November, were
showing a profit. As to the current situation, he said: "When I took
charge the Company's policy appeared to be that it was good business
to stock large quantities of every line of goods and, with the downward
trend of the market, this could only bring heavy losses. The loss is a
heavy one and a large portion of it should have been taken last year
but, unfortunately, we found that book inventories instead of physical
inventories, in a good many cases, were used and prices were not revised
in accordance with market conditions. Just here I might mention that
the amount of our stocks on hand a year ago was over one million
dollars, consisting chiefly of general merchandise and farm produce
and, with the general depreciation of from 30 to 60 per cent, it is not to
be wondered at that we suffered losses. The Stores, undoubtedly, were
opened without much thought. All kinds of merchandise was purchased
and this mixture of goods taken over at 100 cents on the dollar in the
face of the declining market. In my judgment we were ill-advised when
we went into the general store business."
Mr. Clemes quoted the Auditors as suggesting that the Shareholders
would be wise in "putting their house in order at once by reducing the
par value of the capital stock from $25 to $15 after first securing com-
plete collection of the present balances due on outstanding subscription."
The Auditors (Rutherford, Williamson & Co.) had also found on investi-
gation that in preparing the past year's balance sheet, both over-valued
and over-stated inventories had been accepted as correct with a total
loss on adjustment of $123,152. As to general conditions, they reported
that the capital was impaired to the extent of $338,597 which reduced
the par value of shares from $25 to a book value of $16.87— based on the
subscribed capital stock and the assumption that all unpaid subscriptions
could be collected. The total turnover of the year's business was $8,612,-
743 of which the retail stores accounted for $2,019,511 and the Head
Office departments for $3,249,959.
At this meeting (Dec. 14) Mr. Powers submitted a statement, as
President, in which he reported the total value of business during 1921
as over $20,000,000 and spoke of the difficulties facing the Board and
himself: (1) The machinery for making changes, such as the closing
of branch stores which were unprofitable, etc., must of necessity move
slowly, since objection was nearly always raised, and "we cannot afford
to lose the good-will of our friends through the country"; (2) as to the
Egg and Poultry department where heavy losses occurred, trade in these
commodities was particularly hazardous, owing to the perishable nature
of the products, and required very careful attention ; (3) reference must
be made to some appointments as heads of Departments "who were
qualified neither by preparation nor inclination to perform the work, and
as to which it would seem that personal friendship induced the appoint-
ments" and that from this source not a few of the mistakes, with their
resultant losses, were due. Mr. Powers retired from the Presidency and
it was decided, when the formal annual meeting was held to exclude
R. H. Ashton from the Board and to select Charles Merkley of Dundas
and George Bothwell of Owen Sound for the two vacancies.
584 THE CANADIAN ANNUAL REVIEW
The most important of the departments was the Live-stock Branch
managed by F. S. Fulthorpe. He reported to the meeting that "your
Live Stock department started on a capital of $2,000, has done a business
of over 26 millions and has returned a surplus of over $57,000 in a period
of a little over 2J^ years." The recently-organized joint shipping as-
sociations had been wonderfully successful; incidently, he claimed that
Co-operative action increased prices to the co-operators. This was
especially the case in hogs: "By shipping co-operatively, the farmers
automatically created a large volume of business under one selling
agency. This agency had the opportunity, and seized it, of creating
competition, and this raised the price."
The United Farm Women of Ontario. This important division
of the U. F. O. opened its 3rd annual Convention in Toronto on Dec.
13-14. Though only in its first years of organization, much satisfaction
was expressed by the Delegates at its success and growth during that
period. Discussions turned chiefly on rural betterment through co-
operation upon the following lines: (1) Co-ordination of the Young
People's branch with the senior organization; (2) Club co-operative
buying and selling; (3) Community utilities and Home demonstration
work. Mrs. J. A. Wallace of Simcoe, President, summed up the chief
problems of the farm-woman as: (1) The shortening of the woman's
working day; (2) the bringing of higher standards of comfort and
beauty to the farm; (3) the safe-guarding of health in the home; (4)
the introduction of money-yielding home industries. One of the points
made by Mrs. Wallace was that "there are too many people in the cities
making frills, and too few in the country producing bread and butter."
In the Secretary's report, Mrs. H. L. Laws gave the total member-
ship as 6,000 and the number of Clubs as 200 — an increase of 86 over
the previous year; in addition to this, many women had become members
of the U. F. O. Clubs throughout the Province. Miss Agnes MacPhail,
M.P., led a discussion on the Public School system and declared that
Denmark was the only country in the world which had solved its rural
educational problem and urged study of the Danish system: Mrs. Laws
declared that the Canadian system was based on the needs of the town
and city rather than of the country and claimed that too little emphasis
was laid on the teaching of citizenship in the schools. Mrs. Wallace
retired because of her husband's election as M. P. in Norfolk and officers
for the year 1921-22 were elected as follows: Mrs. J. S. Amos, of Wood-
stock, President; Mrs. H. L. Goltz of Burdsville, Vice-President ; and
Mrs. H. L. Laws, of Cayuga, Secretary. The chief Resolutions carried
urged :
1. That practical women outside of the Executive be appointed
to co-operate and work — through the Women's Section of the
Canadian Council of Agriculture — on the Inter-Provincial Commit-
tees of Social Service, Public Health, Immigration, etc.
2. That the U. F. W. O. petition Parliament to send Provincial
nurses to the most needy and sparsely-settled districts — Northern
Ontario, for instance.
3. That, since rural women now have the Federal and Provincial
franchise, the Government be requested to amend the Municipal Act
so as to give farmers' wives and daughters the municipal franchise
on the same terms as farmers' sons.
4. That the Midway and gaming devices at the Fall Fairs have a
demoralizing effect upon young people, and that the Farm Women
of Ontario urge immediate steps to remedy the evil.
5. That, as home-making is a task of national importance, the
Federal Government be" asked to place at the service of the home-
makers of the country a system of Home Demonstration and, with
the co-operation of the Provincial Government, parallel the work
of the Agricultural representatives in the rural parts.
EDUCATION IN ONTARIO; THE SEPARATE SCHOOL QUESTION 585
6. That there should be closer co-operation with the Women's
Institutes and that representatives be inter-changed at Conventions.
7. That protest be recorded against any further increase in
Bell Telephone rates and that rates should be reduced to those pre-
vailing prior to the last increase.
The Hon. R. H. Grant, Minister of Education,
Education in in his Report for the year 1921, was reasonably sat-
Ontario; isfied with existing conditions and with the pro-
Po7icy111Sep-t gress underway: "Notwithstanding the fact that
arate Schools tne economic and social forces of the time are not
and the wholly favourable, the progress made by the ele-
Universities. mentary and secondary schools of Ontario has been
substantial and continuous. Public interest has
shown no signs of flagging. The readiness of both rural and
urban communities to enter upon necessary expenditures has
been remarkable. The attendance of pupils has improved and is
now better than in previous years. The salaries of teachers
have risen. The professional training schools are well attended
and the supply of teachers is not inadequate." Reference was
made to the Imperial Conference of Teachers* and special de-
tails given of the advances in teachers' salaries during 1919 and
1920. The increase for male teachers in Rural schools was $252
and for female teachers $205 ; the increase for male teachers in
Urban schools was $184 and for female teachers $155. Those
with higher certificates commanded the better salaries and the
number of men in elementary schools continued to show an in-
crease.
As to Consolidated or united schools, the Minister stated
that a Director of Rural School Organization (Dr. W. J. Karr)
had been appointed to make a thorough examination of the
situation in its various aspects ; to confer with the rural authori-
ties in all parts of the Province ; to make a special study of in-
dividual and exceptional cases, and to take charge of the pro-
motion of such schools; to investigate conditions wherever ad-
vanced courses were not provided by neighbouring High or Con-
tinuation Schools. Vocational instruction was dealt with and a
special Report by Dr. F. W. Merchant, Director of Industrial
and Technical Education, was quoted as follows : "The schools
are finding for themselves an established place in the Educa-
tional system of the Province. On the industrial side they are
providing for the young people who are to enter industry the
essentials of a good academic education, and at the same time
furnishing a special training in the subjects and operations
which are fundamental to the trades and industries in which
they are to be employed." The Federal grant along this line
was $344,956 in 1921 and was being used in accordance with
the Agreement entered into. The Adolescent School Act was
referred to and the Separate School question, especially, was
*Note.— See Pages 225-27 of this volume.
586
THE CANADIAN ANNUAL REVIEW
dealt with at length. The Statistics for the year 1920 were given
and the following table is a compilation therefrom :
Educational Statistics of Ontario, 1920.
School population between the
ages of 5 to 21 years 667,379
High Schools (including Collegi-
ate Institutes) 168
Continuation Schools 144
Public Schools in Operation 6,207
Roman Catholic Separate Schools 594
Total of above Schools in opera-
tion 7,113
Pupils attending High Schools 39,539
Pupils at Continuation Schools 5,823
Pupils attending Day Industrial,
Technical and Art Schools 4,526
Pupils attending Night Industrial,
Technical and Art Schools 27,297
Pupils attending Public Schools.... 489,660
Pupils attending Roman Catholic
Separate Schools 76,881
Grand Total of students and
pupils attending all above
Schools 643,726
Amount paid for the salaries of
Public and Separate School
Teachers $13,070,038
Total amount paid for Public and
Separate School Purposes 25,216,512
Amount paid for Continuation
School Teachers 317,602
Total amount for Continuation
School Purposes $473,085
Amount paid for High School
teacher's Sarlaries $ 2,269,387
Total amount for High School
and Collegiate Institute pur-
poses 3,588,933
Amount paid for Industrial,
Technical and Art School
Teachers' Salaries 455,902
Total amount for Industrial,
Technical and Art School pur-
poses 1,347,905
Grand total paid for Educational
purposes as above 30,626,435
Male teachers in Public and
Separate Schools 1,506
Female teachers in Public and
Separate Schools 12,363
Total Public and Separate School
Teachers 13,869
Continuation School Teachers 255
High School and Collegiate In-
stitute teachers 1,207
Day Industrial, Technical and
Art School Teachers 191
Number of all Teachers, as speci-
fied above 15,522
Dr. John Waugh, Chief Inspector of Schools, stated that the
number of Ontario Public School teachers had grown from 12,-
094 in 1916 to 13,582 in 1921, and that of these Grade No. 1 had
increased 215 in number and Grade II 1,618, while Grade III had
decreased 245 and the Lower Grade stood even. Dr. Merchant
reported an increasing contribution by municipalities toward
Technical Education — the total having grown from $111,117 in
1913-14 to $659,072 in 1918-19 and doubled in 1919-20 to $1,347,-
905; similarly the grants by the Provincial Government had
grown from $5,380 in 1911-12 to $565,287 in 1920-21. Technical
courses were under operation in Steam Engineering, Electricity,
Mining, and Merchant Marine service ; Summer School courses
for Vocational Teachers were held in Toronto during 1921 and
Evening schools had also been held in Toronto, Hamilton and
London. The Vocational Education Act of the 1921 Legislature,
which repealed the Industrial Education Act, provided for the
establishment and development of Vocational schools giving
instruction in industrial, home-making, art, technical, com-
mercial and agricultural subjects. The schools were to offer
full-time day courses, part-time day courses, and evening school
courses of instruction. All courses were designed to give, as a
basis of citizenship, instruction in the essentials of a general
education and at the same time a specialized training in sub-
jects, processes, and operations fundamental to the fields of
work in which young people sought employment.
The Act provided also that any municipality could establish
one or more schools or departments for instruction, in the sub-
jects mentioned, either as Separate Schools or as departments
in a Secondary School and to be under the control and manage-
k EDUCATION IN ONTARIO; THE SEPARATE SCHOOL QUESTION 587
ment of appropriate Advisory Committees. Vocational schools
or departments were entitled to annual grants to be paid out of
any moneys appropriated by the Legislature for industrial, com-
mercial, technical or agricultural education. Dr. J. C. Miller
resigned his post as Assistant Director of Technical Education
in September and was succeeded by F. P. Gavin. Manual Train-
ing and Household Science continued to be popular and the
Memorial School, Hamilton, was- a new illustration of effective
work in this connection. Good progress, also, was made in the
Rural schools where, in 1919-20, these subjects were taught in
190 schools and in 1920-21 at 308 schools. During the Sep-
tember, 1920, and June, 1921, season 1,483 ungraded schools '"
had classes in Agriculture, with 204 graded schools and 117 un-
graded and graded Separate Schools ; in the 1921 season 28 High
Schools qualified for grants in this connection and the subject,
also, was taught in the seven Normal Schools of the Province.
The attendance at these latter Schools at the close of 1921
totalled 1,446, with 77 at the Model Schools and 424 at the
Summer Model Schools. The Ontario School for the Blind had
a 1921 registration of 146 and that for the Deaf an average at-
tendance of 245.
W. O. Carson, Inspector of Public Libraries, reported to
the Minister what he termed "startling progress" in this con-
nection: "The addition of 14 new Libraries made the total
number 450 and the use of Travelling Libraries was 41 per cent,
greater than in 1920; the official records for 1920 showed an
increase of 800,000 circulation in books for home-reading over
the preceeding year, with an estimated total patronage for 1921
of 8,000,000 ; the grants earned by Libraries in 1921 were 22 per
cent, greater than in 1919, and this was due almost entirely to
the small libraries ; there was a large increase in book purchas-
ing by Libraries— $140,000 in 1920 as against $68,000 two years
before." The results of the new Public Libraries Act were said
to be extremely favourable. The Free Public Libraries of the
Province numbered 186 in 1920 with 1,537,517 volumes, a circu-
lation of 6,316,340, an expenditure of $738,010 and a Legislative
grant, paid in 1921, of $28,816; the Association Public Libraries
numbered 264, with 473,950 volumes, a circulation of 635,307, an
expenditure of $52,598 and a Legislative grant, paid in 1921, of
$11,181. It may be added that small grants were made to 40
Historical institutions, or organizations, totalling $11,450; that
Public School Libraries in the Province numbered 5,602 in
1920-21, with a total expended by schools in this respect of $18,-
125 and a Government grant of $8,310.
Policy of the Minister of Education. Mr. Grant, in his |
second year of office, developed a steady policy along specific
lines. lie had to deal with two important Reports during 1921
— one an Interim statement of the Committee on High School
Education appointed in the preceding year, and of which Dr.
F. W. Merchant was Chairman, with 26 members who repre-
588
THE CANADIAN ANNUAL REVIEW
sented the Universities, the High Schools, Continuation Schools,
the Inspectorates and the Department of Education. It was
appointed to review courses of study and the examination Sys-
tem and to report on matters affecting organization and effici-
ency. The Report suggested many things: (1) Better pro-
vision for High School pupils who wanted general and not
specific education — with a Graduation Diploma recognizing this
need; (2) more freedom to Local authorities in both subjects of
study and school organization; (3) relief from a congested
time table and excessive number of subjects taken concurrently;
(4) encouragement of Municipalities in experimenting with
schools which would combine academic and cultural subjects
with pre-vocational training. Courses of study were drafted,
with emphasis on the optional subjects, and advice was given as
to a minimum and maximum number of subjects to take in any
one year.
On July 6 the Minister specified certain changes in the
High School courses of study as a result of this Report. The
policy of the Department was stated to be provision of a five-
year course of training that would be an end in itself instead
of a step to either University or Normal School work. Under
this system Matriculation was provided for, but, by the adoption
of an optional system, applied to all but a few subjects, the
student could take the particular instruction he desired. This
involved changes in the examination system, and thereafter the
student would be permitted to write on an examination in one
or more subjects at the year-end when he completed that sub-
ject. On obtaining 50 per cent, of the marks assigned to that
paper, the student would be given a certificate of standing. The
courses of study were divided into three sections — a Lower
School course of two years, a Middle School Course of two years,
and an Upper School Course of a year.
The University Report, submitted in February, was com-
plete and elaborate. Composed of Ven. Dr. H. J. Cody (Chair-
man), Sir J. S. Willison, J. Alex. Wallace, T. A. Russell, A. P.
Deroche and C. R. Somerville, the Committee reported upon the
financial obligations of the Province toward the University of
Toronto, Queen's of Kingston and the Western of London. It
first described the value of Education as shown in history and
in experience as affecting the individual or the citizen ; then
dealt with primary, secondary and higher Education as parts
of one great educational effort and the University as the ser-
vant of the country with the mission of using culture, knowledge
and discipline for the service of the people. The broad line of
policy recommended was (a) adequate support for the Pro-
vincial University for which the State was primarily and solely
responsible ; (b) such reasonable support to the other two Uni-
versities as would be just to them and to the districts of the
Province which they specially served, while extending the bene-
fits of Higher Education to a wider circle of students.
EDUCATION IN ONTARIO; THE SEPARATE SCHOOL QUESTION 589
The Provincial University was described as standing in a
unique position : "It was established by public funds ; it has
been maintained by public funds. It is controlled by a Board
appointed by the Government. It has for generations been
recognized by custom and by legal enactment as the special
property of the State. The State has legal and moral obliga-
tions to it." Its requirements were fully pointed out with those
of the other two institutions and the following summary of the
chief recommendations may be given :
1. That for the maintenance of the Provincial University and of
University College there be restored the basis of support in the Act of
1906, viz., a yearly sum equal to 50 per cent, of the average of the Suc-
cession Duties for the three preceding years — $1,584,000.
2. That annual maintenance grants be paid to Queen's and West-
ern Universities, and that these grants be readjusted every five years
by a Court of Reference to be appointed by the Lieut. -Governor-nf-
Council — the grant to Queen's for the next two years being $275,000 a
year and $300,000 a year for the ensuing three years ; the grant to the
Western being $200,000 a year for the first two years and $250,000 for
the next three years.
3. That grants on Capital Account for buildings urgently needed
be given to the Provincial University ($1,500,000); to Queen's ($40,000);
to Western ($800,000).
4. That if increased revenues for education be required in future,
the Government should consider the advisability of levying a direct tax
of one mill on the dollar on the municipally-assessed value of the rateable
property of the Province (excluding incomes), ear-marked for general
educational purposes.
5. That in any University aided by State funds no new Faculty
be established and no new building (paid for by Public funds) be erected
without the consent of the Lieut.-Governor-in-Council.
6. That a University Day be provided for in the Legislature, on
which the Heads of the various Universities shall appear to report on
their work.
7. That a Department of Graduate Studies and Research be organ-
ized in the Provincial University as soon as practicable.
In the Legislature, on Apr. 14, Mr. Grant stated that the
Government could not act upon the Report as a whole but would
consider it as a basis of action, and give to its proposals ex-
haustive consideration. Meanwhile, the grant which the Govern-
ment proposed to make to the University of Toronto would be
practically $900,000 greater than last year; Western Univer-
sity would receive $200,000, as compared with $84,000 last year,
Queen's University would be given $325,000 as compared
with $165,000 last year. To a Deputation which, on this date,
waited upon Mr. Drury, the Premier was frank in his expression
of doubt as to utilizing the Succession Duties in this way : "The
Government intends to go just as far as it can to help the
University, but has decided, in view of the financial situation,
upon a fixed grant." In the House on Apr. 21st H. H. Dewart,
Liberal leader, agreed with the Premier as to the Succession
Duties not being suitable for this purpose and urged more direct
Government control over the University ; Howard Ferguson,
Conservative leader, in urging generous treatment of the in-
590 THE CANADIAN ANNUAL REVIEW
stitution, opposed this latter suggestion and declared that in-
dependent control by a Board of Governors had been planned to
remove the University entirely from political interference.
On Nov. 17 the Hon. Mr. Grant officiated at the formal
opening of the new Medical College of Western University,
London; in his speech he declared that if, by voting generous
aid to this University, the Legislature had approved of a certain
measure of decentralization in University education, it was
done in the belief and confidence that local financial support
would be freely accorded. Meanwhile, a Resolution passed by
the Toronto Board of Education (Oct. 20) urging "that the
Urban School Trustees' Association ask the Department of Edu-
cation to authorize only such text-books as are strongly British
in character, and of British authorship and British publication,"
received the Minister's attention and, in a letter dealing with
this matter, he declared that in the selection of school text-
books preference was always given to books written and pub-
lished by Canadians. At the same time : "It is important that
teachers and pupils be supplied with the best available books in
the different departments of study." As to the High School
Ancient History which had been referred to it was written by the
late Professor Botsford: "From all such histories in existence,
both British and American, it was selected by a number of rep-
resentative Ontario teachers as altogether the best of the kind
available." In December it was announced that a new Public
School History of England was completed, written for the De-
partment by Prof. George M. Wrong, as well as a History of
Canada by the same Author.
The Adolescent School Attendance Act created much discus-
sion during the year. Passed by the Legislature two years be-
fore, it was proclaimed in September, 1921, as effective in Muni-
cipalities of 5,000 and over. Under its terms the age of com-
pulsory education was raised from 14 to 16 years. Before this
a child on attaining the age of 14, or even at an earlier age, if
he had passed the High School Entrance, had the legal right to
discontinue attending school and large numbers availed them-
selves of this privilege. With such a limited education, it was
contended, these children were poorly equipped to succeed in
life in an age where trained intelligence was so necessary.
The fundamental considerations given in connection with ^
and for this measure were as follows: (1) Children at 14 left
school without any preparation for wage-earning and without
an opportunity to find out what work they were best fitted to do
in life and too immature in body, in mind, in character, to obtain
desirable employment; (2) the great and admitted shortage of \
trained and skilled men or women and the fact that under
modern industrial conditions, where production methods were
so increasingly important, the young worker of 14 or so found
no opportunity for learning anything of the fundamental prin-
ciples and theories of skilled employment; (3) the fact that the
EDUCATION IN ONTARIO; THE SEPARATE SCHOOL QUESTION 591
Fisher Bill in England made compulsory the attendance of all
youths between 14 and 18 years of age in part-time schools for
320 hours a year and that the need for such extended education
had been felt keenly in England; (4) the additional fact of the
Scotch Compulsory Act of 1918 fixing the limit of compulsory
full-time attendance at 15 years while compulsory part-time
Education laws running to 16, 17 and 18 years had been passed
in more than 20 American States.
The law was described by critics as a most radical and al-
most revolutionary enactment. Dr. J. H. Putnam, Senior In-
spector of Schools at Ottawa, in a Hamilton address on Jan. 12,
objected to the Fee charged and thought it impossible to force v
adolescents to attend school part or whole time unless the fees
were abolished. Another objection was the difficulty of poor
parents, who depended for help upon their growing children, hav-
ing to support them two years longer before reaching a working
adolescence; one Labour man in the Industrial Banner (Mch. 11)
asked the Educationalists to look at the thousands of married
women working to help raise and feed a family and profoundly
grateful when one of the children could start work; it was
claimed that for the child or adult who was eager to study, there
were splendid opportunities for learning in the night schools,
business colleges and libraries and the child or adolescent who
was not willing to avail himself of these aids would be no more
successful under this new system; the difficulty of enforcement
and lack of facilities in that respect was another argument.
At the opening of the School season in September, 1921,
thousands of children, over 14, returned to school and the great-
er enrollment taxed the accommodation to the limit in some
districts. It was explained, in answer to some of the objections
raised, that not all children between 14 and 16 were obliged to
continue their schooling; if, in the opinion of the School Attend-
ance officer, the services of a boy oTTnTs age were required in
or about the home of his parents or guardian, or was needed in
some form of work for the maintenance of himself or some per-
son dependent on him, he could be granted an employment cer-
tificate. It was stated that very few applications of this kind
were received. The Act was being put into force gradually;
the clause, for instance, as to part-time education up to 18 years
of age, for those who left school before 16, would not be effective
until September, 1923.
Revival of the Separate School Question. This old-time
issue in a new form came up in 1921. There had been no change
in legislation or serious alteration in Regulations affecting these
schools for some years; the Drury Government had taken no
special stand upon the subject until the question of School taxesK
and their allocation as between Separate and Public Schools
came up at this time. The clause of the Separate School Act of
1863, which was passed by the United Legislature of Upper and
Lower Canada and was again under special discussion, was as
592 THE CANADIAN ANNUAL REVIEW
follows: "Every Separate School Board shall be entitled to
a share, in the Fund annually granted by the Legislature of this
Province for the support of Common Schools, and shall be en-
titled also to a share in all other public grants, investments, and
allotments for Common School purposes, now made or hereafter
to be made by the Province or the Municipal authorities." This
was confirmed by Section 93 of the B. N. A. Act in 1867,
which declared that "nothing in any such Law shall prejudicially
affect any Right or Privilege with respect to Denominational
Schools which any Class of Persons have by Law in the Prov-
ince at the Union."
According to the Ontario Statutes (Section 6, Department
of Education Act) the sums to be appropriated by the Legis-
lature for elementary education were voted under three general
heads: (1) votes to Urban public and separate schools; (2)
votes to Rural public and separate schools in Counties; (3)
votes to Rural public and separate schools in Districts. In his
1921 Report the Minister of Education gave the amounts so
voted (and in the case of County rural schools added to by a
Treasury Board order of $555,000) as being $197,000 to urban
schools of which $35,460 went to the Separate Schools; $1,655,-
000 to County rural schools of which $140,509 went to the Sepa-
rate Schools'; $460,000 to District rural schools of which $39,054
went to Separate Schools. The Hon. Mr. Grant declared that
the statutes and regulations governing the distribution of sums
voted in support of elementary education among the schools of
the Province were the same for Public and Separate Schools and
the division was carried out as directed by the law and Regu-
lations. He frankly admitted that the operation of the factors
determining the distribution had always given rise to inequal-
ities in the amounts awarded to different schools and that the
disparity complained of between grants paid to certain rural
separate schools and those given to neighbouring public schools
was not a new condition ; the inequalities, also, were growing
as the result of increasing votes and grants.
Such was the general situation at the beginning of the year
with an under-current of Roman Catholic dissatisfaction in Ot-
tawa over the French language trouble, there, and increasing
expressions of discontent as to the application of taxes and the
consequent difficulty of keeping Separate Schools up to the
r mark in buildings, etc. On Feb. 22 a Deputation waited upon
Mr. Premier Drury and the Minister of Education — composed of
J. M. Ferguson, John O'Neill, M.L.A., W. T. J. Lee, D. A. Carey
and others — and explained the Toronto difficulties in this con-
nection. It was pointed out that, for the last few years, the de-
ficit had been growing until this year it was estimated at
$112,000; proper accommodation was lacking and the Separate
Schools were said to be in a serious condition. They asked for
a fair proportion of the taxes derived from public utilities and
corporations and stated that 800 children, whose fathers were
EDUCATION IN ONTARIO; THE SEPARATE SCHOOL QUESTION 593
Protestants, attended the Separate Schools and this cost about
$50,000; in such cases, it was claimed, the man should have the
right to say whether his taxes should or should not go to the
Separate Schools. It was stated, also, that these schools got
practically nothing from corporate taxation.
On Mch. 18 Archbishop McNeil was reported, in the Toronto
Star, as having said that the National Railways were owned by
the people of Canada and that "it would create a National distur-
bance" if Catholics did not get a fair share of the School taxes
paid by these Railways. About this time several of the Catho-
lic Hierarchy of the Province discussed this question of taxes
with Mr. Grant. On May 31 a second deputation met the Gov-
ernment with Archbishop McNeil, Bishop Fallen of London,
Bishop O'Brien of Peterborough, Father Foley, Editor of the
Catholic Record, London, and John O'Neil, M.L.A. amongst those
present. The Archbishop and Dr. Fallon presented the case for
the Separate Schools with much force and earnestness and based
their claim upon rights given under the B.N.A. Act. It was
alleged that, since the passing of the legislation under which a
person or corporation paying the tax was to specify where the
portion for educational purposes should be allocated, business
had passed very largely into the hands of big corporaations and,
though Separate School supporters had a very large interest in
industrial concerns, public utilities, etc., the taxes, in most cases,
went to the Public Schools. It was claimed that if the Separate
Schools received their full share of all taxes, the financial prob-
lem of the schools would be solved and the Church would be
able to take care of its secondary education as well.
Following this, a determined agitation developed along the
lines mentioned. On June 12, Roman Catholic organizations
throughout Western Ontario carried identical Resolutions pray-
ing the Ontario Government to pass amending legislation which
would enable Separate Schools to receive their share of the
taxes of Catholics who were members of joint stock companies;
meetings for this purpose were held, for instance, in all the 15
districts comprising the Diocese of London. At the Ottawa
Convention of the Catholic Order of Foresters for Ontario (June
15) a Resolution was unanimously passed endorsing the action
of the Hierarchy in petitioning the Government along these
lines. On July 22 the Knights of Columbus at a London meet-
ing passed a Resolution identical in terms with one which
all similar bodies in Ontario were endorsing and with clauses
(1) reviewing the B.N.A. Act and its protection of the rights of
minorities; (2) declaring that amongst those rights were "the
full development of the Common School System and the equit-
able division of the school taxes for minorities and the propor-
tional distribution of all school grants"; (3) stating that the
Catholic School system was deprived of legal machinery for its
complete functioning; (4) claiming that the Separate Schools
did not receive "a just and proper share of certain school taxes
and school grants"; (5) asking the Government and Legisla-
20
594 THE CANADIAN ANNUAL REVIEW
ture "to enact such legal measures as will place the Roman
Catholic Minority of this Province in the full enjoyment of its
educational rights under the Constitution."
Archbishop McNeil of Toronto took the lead in this move-
ment. In The Globe of Oct. 5 he quoted historical data to prove
that Separate Schools were originally granted because the Pro-
testants wanted to teach the "Protestant Bible" in the Public
Schools ; to a long Resolution of the Board of Education, Toron-
to, on Oct. 6, His Grace replied at length and took up its state-
ments one by one ; on Oct. 24 he addressed a crowded meeting
of the local Canadian Club on the subject. In his address the
Archbishop first pointed out that 80,000 pupils were attending
the Ontario Separate Schools at a cost of 2^ million dollars a
year ; that these schools were part of the Educational system and
machinery of the Province with the whole people responsible
for their well-being; that their regulation, administration and
control were in the hands of the Department of Education ; that
the Separate Schools were essentially public and not private
schools with the Department prescribing the examinations of
the teachers and that all, whether they were Sisters or Chris-
\ tian Brothers, or lay teachers, went through the ordinary Nor-
mal Schools and had the same certificates as Public School
teachers ; that the text-books used in the Separate Schools were
the same as in other Public Schools except in the matter of
Religion.
His Grace then pointed out that all over the Province
Catholics were building or establishing Separate Schools at their
own expense because the Province did not allow them sufficient
under existing tax conditions ; that at Weston, for instance, they
had built a $25,000 4-roomed school without liability to the
Board or the Province and that similar conditions prevailed in
St. Catharines, in Collingwood, in Port Dalhousie, in Oshawa,
in Thorold, in Niagara Falls and many other places; that in
Hamilton, every year, the Catholic parishes collected between
14 and 15 thousand dollars to supplement the School taxes; that
in Toronto the Church had placed $500,000 worth of property
at the disposal of the Separate Schools without rent and had to
carry the burden of interest and debt. He claimed that Separate
Schools were here by the solemn pact of Confederation — by
pledge, and legislation, and the accumulated right of nearly 60
years — and declared that one of the terms of that agreement
(Art. 14 of the Act of 1863) was that the supporters of Separate
Schools would be exempted from all taxes levied for the support
of other schools and that Ontario was not carrying out the pro-
visions of that agreement to-day.
The contention was that Catholics were paying taxes to
Public Schools through such concerns as National Railways, the
C. P. R., the Hydro Electric and many big corporations. He
instanced the C. P. R. and the Hydro-Electric Commission as
being most anxious to divide their taxes proportionally and as
EDUCATION IN ONTARIO; THE SEPARATE SCHOOL QUESTION 595
having asked that this be done only to find it impossible be- .
cause of the terms of the Ontario Assessment Act ; he stated tK
that the amendment to the Act creating this situation was
passed 35 years ago and should certainly be adjusted under the
new and changed business conditions of to-day. In a Pastoral
to his people (Oct. 23) Archbishop Spratt of Kingston stated
that "in the whole Province there may perhaps be half a dozen
corporations whose Catholic members are paying taxes to Sep-
arate Schools on Company property". As to the rest: "In
thousands of cases it is made impossible for Catholics to support
the schools of their choice, for an odious practice in these cases
confiscates Catholic taxes and hands them over to the Public
School."
Speaking of Toronto conditions Archbishop McNeil stated at
St. Michael's Cathedral, on Oct. 30, that although the Separate
Schools of the City provided accommodation for more than 11
per cent, of the school population, the Separate School Board
received only 6 or 7 per cent, of the school taxes paid in the
City; if the Separate School Board were to receive its fair pro-
portion it would have $200,000 additional. Catholics wanted
their just share and no more and he instanced the Consumers'
Gas and Bell Telephone as two corporations in which all were
interested and whose taxes should be equitably distributed. The
Catholic Register of Nov. 24 contained an elaborate Postoral from
Archbishop Gauthier of Ottawa dealing at length with the con-
stitutional rights in this connection claimed by his Church and
its people.
As to the main grievance, he quoted the amendment to the
Separate School Act passed in 1886 whereby: "A corporation^/
may give notice to be rated for Separate School purposes, but
only in proportion to the stock or shares held by Rom#n Cath-
olics." This was said to have become unworkable under changed
conditions and the nature of the shareholders' lists in such
corporations as the C. P. R. with its constantly changing person-
nel. Bishop Scollard of Sault Ste. Marie, at this time, had a
series of articles in The Nugget of North Bay with the suggestion
that the Assessment Act be amended to define every Roman
Catholic in Ontario as a Separate School supporter, unless he
asked exemption or change, as the chief point. During the year
the Catholic Educational Council of Ontario was formed andv.
its first publication was a pamphlet entitled "Denominational
Schools in British Canada." Represented by the Toronto Arch-
bishop, the Bishops of London and Peterborough and various
lay members, this Council, on Dec. 20, presented a further state-
ment to the Premier of Ontario with the following claims :
1. Separate School supporters do not enjoy the exemption from
taxation for the support of other schools, granted them in the Separate
Schools Act of 1863.
2. Of the four Provinces in Canada in which Separate Schools are
established by law, Ontario stands alone in making no effective pro-
vision for the equitable distribution of Corporation taxes.
596 THE CANADIAN ANNUAL REVIEW
3. Because of mixed marriages there are thousands of Catholic
children in the Separate Schools whose parents are not allowed to pay
their taxes to the schools in which the children are educated.
4. That 5th Form work was forbidden to Separate Schools by Reg-
ulation in 1915, after having been carried on since 1863 and earlier;
while right to establish Continuation Schools was withdrawn by another
Regulation. The return of these rights was requested.
This agitation naturally evoked opposition and it was ex-
pressed with ample fullness and unquestioned force in the
v Orange Sentinel and the Toronto Telegram with H. C. Hocken,
M.P., Grand Master of the Loyal Orange Association, as the
chief protagonist of this school of thought. There were Reso-
lutions passed by some public bodies and there were press com-
ments in opposition to the subject throughout the year. Natur-
ally, the 12th of July avoked some strong expressions and Mr.
Hocken told the Toronto Orangemen that, if the Roman Catholic
proposals were granted, millions of taxes paid by Protestants
opposed to the principle of separation in education would go to
support schools designed primarily to impart knowledge of the
Roman Catholic Catechism. He claimed that Separate Schools
had been forced upon the people of Ontario in 1863 by the votes
of the representatives of Quebec in the United Legislature and
that "it was an unscrupulous violation of an agreement that no
law should be imposed upon either Province except by the con-
sent of a majority of the representatives of that Province".
When R. W. Scott's bill was before the United Legislature,
21 Upper Canada members were stated to have voted for the
Bill and 31 against it while 34 of the 36 members from Quebec
voted for it. The chief action taken was in Toronto on Oct. 6
when the Board of Education, on motion of Rev. H. A. Berlis
passed a lengthy Resolution referring to this demand of the Ro-
man Catholics of the Province and the current propaganda in
uts support; giving reasons against the proposal and finally re-
cording an emphatic protest against any re-opening of the
School question or any grant to the Separate Schools along any
of the lines suggested ; denouncing any regulation or legislation
that would further extend Sectarian schools in this Province at
the expense of the Public Schools. The reasons given were as
follows :
1. That demands now being made by the Bishops are the same
in principle as the demands made by the Roman Catholic Church rep-
resentatives before Confederation, viz., to receive public monies for
Separate School support, not in proportion to the Roman Catholic
taxable property, but in proportion to the population, though the ratio
of that population may be many times that of the taxes they pay.
2. That similar demands were denounced by Dr. Egerton Ryerson
as "a monstrous proposition," and were rejected by the Government and
Legislature of United Canada in 1855, 1858, 1860, 1861 and 1862.
3. That the Separate School Act of 1863 was confirmed as "a
finality as to assumed rights" by the B. N. A. Act of 1867, Section 93,
and adopted by the Parliament because of that belief.
4. That to grant the present demands of the Roman Catholic
Bishops would not only violate the fundamental principle of the Act of
EDUCATION IN ONTARIO; THE SEPARATE SCHOOL QUESTION 597
1863, but would, in an arbitrary manner, define all Roman Catholics as
Separate School supporters, and result in the crippling of the splendid
Public and non-sectarian school system of Ontario.
A similar Resolution was passed by the London School
Board; the annual Baptist Convention of Ontario and Quebec
(St. Thomas, Oct. 21) opposed by Resolution all teaching of re-
ligion in Schools ; Resolutions poured in to Orange headquarters
from Lodges all over the Province. On Oct. 31 H. C. Hocken
addressed the Canadian Club in reply to Archbishop McNeil.
He started by declaring that the Separate School system was
not a Public Service ; it was a special service for one set of
people in the community. He claimed that the 1863 settlement
was a final one and that, notwithstanding this, there had been
nearly two score amendments to the Act of 1863, and every one
of them to the advantage of the Separate School system ; that,
outside of the selection and approval of text-books, guarding
of the teachers' qualificataions and the auditing of accounts,
the control of Separate Schools, in every other respect, was
vested entirely in the ecclesiastical authorities ; that, according
to the voting in 1863, Separate Schools were forced upon Ontario
by the Quebec majority in the United Legislature.
He stated that the division of taxes of incorporated com-
panies asked for by the Archbishop "would take from the Public
Schools at least a million dollars a year that they are now receiv-
ing for the public, non-sectarian system" ; that where there was
difficulty in ascertaining the religion of shareholders (as in the
C. P. R.) then the public, non-sectarian system should have the
benefit of the doubt; that the proposed policy was a reversal
of existing conditions because '"the law as it stands to-day,
makes every citizen of Ontario printa facie a Public School sup-
porter" ; that in Ontario amendments to the Separate School Act
in 1904 had enacted that a Corporation "by notice to the Clerk
of any Municipality where Separate Schools exist, may require
the whole or any part of the land of which said Corporation is
either owner or occupant to be entered, rated and assessed for
the purpose of such Separate Schools". Mr. Hocken concluded
with the statement that he "hoped soon to see the day when the
children of all Canada would be taught in one Public School sys-
tem."
The University of Toronto in 1921. According to the Re-
port of Sir Edmund Walker as Chairman of the Board of Gover-
nors for the year of June 30, 1921, the gross revenue of the
Provincial University was $1.082,867 and the expenditures under
appropriation for salaries and maintenance $1,937,516; to this
deficit of $868,479 there had to be added a debit balance from
1919-20 of $9,311. To meet the total there was a Special grant
from the Legislature in 1921 for $880,000. The total Staff of
the University was 558 of whom 325 were demonstrators, Fel-
lows and Instructors with sessional appointments ; this Staff
was distributed amongst the different Faculties and in Univer-
598
THE CANADIAN ANNUAL REVIEW
sity College, Victoria College, Trinity and St. Michael's Colleges.
The number of students registered during 1920-21 totalled 5,060
— inclusive of Summer Session occasionals — and were divided as
follows :
Men Women Total
Faculty of Arts:
University of Toronto
University College
Victoria College
Trinity College
St. Michael's College
Graduate Courses
Faculty of Medicine
Faculty of Applied Science
Ontario College of Education
Faculty of Forestry
Faculty of Music
Department of Social Service
Department of Public Health Nursing
Registered twice
128
630
319
88
121
113
1,039
805
150
55
12
18
'"26
61
540
191
41
85
50
88
1
76
6
348
126
11
189
1,170
510
129
205
163
1,127
806
226
55
18
366
126
31
Total 3,498 1,624 5,122
The degrees conferred during the year were 1,006. In his
Report the President, Sir Robert Falconer, dealt with outstand-
ing incidents of the fiscal year and detailed summaries of
the Heads of Faculties and Departments. He stated that during
1920-21 the Alumni Committee had made loans to 214 returned
soldier-students of $46,399; that Prof. J. A. Dale's first Report
as Director of Social Service showed notable progress in that
connection — with 366 registered students and 296 in short
courses ; that Dr. A. S. Vogt, as Dean of the Faculty of Music,
had succeeded in completing the transfer of control in the To-
ronto Conservatory of Music to the University and his Faculty ;
that the Rockefeller Foundation grant of $1,000,000 for the Med-
ical Faculty had made the re-organization of the Surgical De-
partment possible ; that W. J. Dunlop had been placed in charge
of the Department of Extension and Publicity and, in his Report,
Mr. Dunlop specified the circulation of 65,000 Bulletins, booklets,
pamphlets, calendars, etc., during the year. The Librarian, H. H.
Langton, M.A., reported 168,418 bound volumes and 54,176 pamph-
lets in the Library with 63,491 books taken out and used during
the year. Important appointments of the year included Dr.
Clarence Starr, as Professor of Medicine ; Miss E. K. Russell
as Director of Graduate Nurses Course ; Dr. Gideon Silverthorn
as Professor of Medical Jurisprudence and Dr. Victor J. Harding
of Pathological Chemistry.
The University adopted several new and progressive lines
of thought during the year. One was the establishment of a
Winter Course especially designed for Farmers, arranged in
co-operation with the U. F. O. Educational Department, and
opened by Sir R. Falconer on Feb. 6 with 263 enrollments. In
his address the President stated that the Lectures would cover
farm economics, farm architecture, public health, English liter-
ature and Canadian history; he described the value and impor-
tance of the University with its Faculties, training and degrees,
each contributing a share to the social, economic and industrial
betterment of the people. At the close of two weeks' Session
EDUCATION IN ONTARIO; THE SEPARATE SCHOOL QUESTION 599
the Course was proclaimed a great success. Another new
Course was in Journalism arranged also by the Extension De-
partment in collaboration with Canadian newspaper men; it
included English Literature and Composition, Canadian con-
stitutional history, public health and hygiene, newspaper juris-
prudence and several subjects of a technical nature ; amongst
the lecturers were Professors W. J. Alexander, G. M. Wrong,
G. D. Porter, J. G. Fitzgerald and J. J. Middleton with J. E.
Atkinson, J. C. Ross and J. R. Bone as practical journalists deal-
ing with special subjects.
These and other Courses followed a re-organization in 1919
of the Department of University Extension, which was placed in
charge of all adult education carried on by the University with
W. J. Dunlop, B.A., as Director of University Extension. This
outside work soon assumed new importance and was de-
veloped with great rapidity. The work amongst teachers, who
were seeking better qualifications, was quadrupled in extent
and the Summer Courses grew greatly in attendance and interest
until, in 1921, the University was serving 500 Ontario teachers
and helping indirectly the thousands who were in charge of such
teachers. The short Winter Courses for Farmers have been
mentioned, and out of that development Tutorial Classes were
established in various rural centres where English Literature,
Canadian History, Community Singing, Current Events and
Civics were taught.
For 20 years the University had given Extension lectures on
a great variety of subjects, throughout the Province, at a nominal
charge; this form of service was greatly expanded in 1921, and
various organizations were taking advantage of it. In Sep-
tember the course in Journalism lasted a week and was attended
by 128 newspaper men and women. Another successful Short
Course (two weeks) was that dealing with Civics and Town-
Planning, in which 51 civil engineers, architects, etc., enrolled.
A rather radical departure was the establishment of extra-mural
University classes at the Central Y. M. C. A. and in the City of
Hamilton. At these evening classes exactly the same work was
taught as in the General Course in the University and persons
employed during the day could secure a B. A. degree by evening
study and three years' academic work in five years' time.
At Toronto, Courses in Household Science, comprising two
lectures and one laboratory period per week for ten weeks, were
arranged for housewives and, in each instance, the accommoda-
tion was fully taken up soon after the announcement of the
course ; Tutorial Classes in English Literature, Economics, Zoo-
logy, and Italian, for Vocalists, were conducted ; free public lec-
tures were given frequently in Convocation Hall and the Hall,
usually, was filled to its capacity. Another form of public ser-
vice at this time in the University was given through the Classes
carried on under the Workers' Educational Association — a co-
operative body of labour and learning; it was controlled by an
600 THE CANADIAN ANNUAL REVIEW
Executive Council on which the University, the Trade Unions,
and the general public were represented. Instruction was given
mainly by members of the University Staff, and the funds were
largely contributed by the University ; the Classes were carried
on in Economics, English Literature, British History, Psychol-
ogy, International Finance, Public-Speaking and Trade-Union
Law. In Hamilton the Classes covered Economics, English
Literature, and Psychology; in Ottawa they covered English
Literature, Economics, and British History. In all these phases
of its Extension work the University reached approximately
3,000 adults during 1921.
Addressing an Alumni dinner in Hamilton (Feb. 14) Presi-
dent Falconer dealt with the general situation of the Univer-
sity : "It should be supported in such a manner that any young
Canadian can get an education equal to the best on the Contin-
ent, so that there will be no drain across the border. The weak-
nesses of the University are caused by its rapid growth — an in-
sufficient number of buildings and too small a staff. A building
programme involving the expenditure of $4,100,000 has been
laid out." When the University Commission Report was made
public disappointment was expressed at the fact that the Uni-
versity had asked for the above amount with, also, an increase
of $1,000,000 in its revenue for the next 10 years and that the
total recommendation made was for $3,000,000 ; at the same time
Sir Robert Falconer expressed himself strongly in favour of the
Succession Duties proposal as meaning a stable and perhaps in-
creasing income. The decision of the Drury Government not to
accept this policy was a still more serious disappointment. Fol-
lowing this the Alumni Association of the University undertook
an active campaign throughout the Province to urge the adop-
tion of the Report upon the Government.
In replying to certain attacks upon the University, made at
this time, Brig.-Gen. C. H. Mitchell, C.B., stated (Apr. 9) that the
Faculty of Science was one of the most important factors in the
development of the Province and that a great many manufac-
turers and business people, and others engaged in industrial
work, took the course ; that there was a great demand for stu-
dents in the electrical, mechanical and chemical branches ; that
the Medical School was one of the finest in America with the
Faculty taking every means to make it a thorough, compre-
hensive course of six years ; that "the graduates of the Faculty
of Applied Science now aggregate 2,040 and of this number
1,444 are at present engaged in the Province of Ontario, 78 in
Quebec and the Maritime Provinces, 240 in Manitoba, the Wes-
tern Provinces and British Columbia, 177 in the United States
with 64 deceased."
The annual Convocation of the University was held on June
10 with degrees in Arts, Medicine, Philosophy, Engineering,
Forestry, Law, Pharmacy and Veterinary Science bestowed
upon many graduates and the degree of Hon. LL.D. upon the fol-
EDUCATION IN ONTARIO; THE SEPARATE SCHOOL QUESTION 601
lowing : Rt. Hon. Arthur Meighen, K.C., B.A., Rt. Hon. Jan Chris-
tian Smuts (in absentia), Hon. E. C. Drury, B.S.A., Hon. L. A.
Taschereau, K.C., Hon. N. W. Rowell, K.C., and F. W. Merchant,
M.A., Ph.D. The Hon. degree of Doctor of Letters was given to
W. P. Mustard, M.A.,ph.o., and Duncan Campbell Scott, F.R.S.C.
There were two special Convocations during the year. The first
was on Aug. 13th, when four representative men in connection
with the Imperial Teachers' Conference were given the degree
of Hon. L.L.D.* On Nov. 28 the new Governor-General, Lord
Byng of Vimy, was similarly honoured. Speaking on Nov. 6
Sir R. Falconer described the University as specially equipped to
give "specific instruction in Hydro-electric engineering", while
the large deposits of clay near Toronto would make the develop-
ment of a Course in Ceramics most useful.
Educational Interests and Incidents. There were echoes
during the year of the French-Canadian School question in On-
tario. In March Senator N. A. Belcourt of Ottawa, a dis-
tinguished lawyer and publicist, was elected President of the
French-Canadian Educational Association of Ontario, in suc-
cession to the late Senator Laudry and, temporarily, S. M.
Genest of Ottawa. At this time (Mch. 21) a statement was is-
sued by Bishop M. F. Fallon of London as to the attitude taken
by him during, and since 1910, upon what he described as "the
inefficiency of the so-called Bi-lingual School system." Charges
had been made against the Bishop of being unfriendly to the
French language and the French-Canadian people and of having
forbidden the teaching of French, or preaching in French, in his
Diocese. The allegations were absolutely denied but eventually
they found their way to Rome after the Bishop had brought
them formally before his Diocesan Tribunal at London. The
matter was taken over and considered by the Holy Roman Rota
between 1914 and 1920 along the following lines; (1) The com-
petency of the Diocesan Tribunal of London; (2) the alleged
refusal to allow teaching of French or preaching in that lan-
guage; and (3) the assumption that opposition to the ineffici-
ency of Bi-lingual Schools meant hostility to the French lang-
uage instruction or French-Canadians. The judgment, as finally
issued, and given in the Bishop's statement of the case was claim-
ed to be a complete vindication an all these points — No. 2 being
described as "a fabrication and altogether foreign to the truth."
To this document of Bishop Fallon's the Educational Associ-
ation under Senator Belcourt published a lengthy reply, on June
29, in which it was claimed that "the true interpretation of facts
was not favourable" to the Bishop. Quotations were given to
show that the Rota did not consider the Bishop's local tribunal as
above "a touch of suspicion" ; it was pointed out that the Bishop
of London was ordered to pay the costs of his action and to
carry out the sentence imposed by a Tribunal in 1917 and pay
to the Rev. Father St. Cyr "a decent sustenance" ; it was stated
*Note. — See Page 226 of this volume.
602 THE CANADIAN ANNUAL REVIEW
that the Bishop's description of Bi-lingual schools as "inefficient
and detrimental to French-Canadians," was described by the
Rota as "not immune from error" ; the special Report to the
Provincial Government of Dr. F. W. Merchant was quoted to
prove the worth and value of these schools in 1911 and 1912;
the Association reiterated its charges in another form and de-
clared that "on the Bi-lingual school and language questions
these (Essex) priests can hardly caluminate the Bishop" !
During the year the United Farmers of Ontario issued a
pamphlet on "Public Schools in the French-speaking Districts"
which pointed out that French-Canadians considered the Ontario
laws to infringe certain natural rights ; described the Regulations
of the Department of Education as inconsistent one with the
other — as, for instance, Regulation 15 passed in 1890 and Regu-
lation 17 passed in 1913; stated that the securing of a sufficient
number of properly qualified teachers for English-French schools
was a serious problem. The following conclusions were stated:
(1) that "the claim of the French-speaking people of Ontario
that their children should be educated in French as well as in
English is. .natural and just"; (2) that the teacher made the
school, and the French-speaking people of Ontario should have
as good teachers as their English-speaking neighbours; (3)
that results in education were more important than methods,
that a degree of freedom was essential to development in the
pupil and in the teacher and that the teacher should be allowed
"a good deal of latitude" in adapting the method and subject mat-
ter to the pecular conditions of the locality "in which he was
teaching."
The Orange Sentinel (Nov. 1st) replied at length to this
pamphlet and claimed: (1) that the question was at bottom re-
ligious despite the fact that chief among the opponents of the
French claims were the Irish and, in some cases, Scotch members
of the Catholic Church ; (2) that the Privy Council's decision had
settled the matter once for all and that the French would ac-
cept a verdict which established (a) that the people of Ontario,
through their Department of Education, had full control of the
course of studies in public and separate schools, and (b) that
elected School Boards had certain rights, and could not be re-
moved at will to make way for appointed officials; (3) that it
was difficult for children to learn a second language, and next
to impossible for a teacher to conduct a school in two languages ;
(4) that "our French compatriots are seeking to bring the Edu-
cational System of Ontario under their control."
There were a number of important Educational meetings
during the year in Ontario. The Urban School Trustees of On-
tario met at Hamilton on Jan. 13 when J. F. Carmichael of
Kitchener declared that the present-day danger was the magnify-
ing of the commercial aspects of Education. Many other
speeches were made and Resolutions were passed (1) urging a
closer censorship of Moving Pictures and suggesting Depart-
EDUCATION IN ONTARIO; THE SEPARATE SCHOOL QUESTION 603
ment of Education control and (2) urging the Department to
take steps to overcome the existing shortage of teachers. Walder
Parke, of Hamilton, was elected President.
The Ontario Educational Association met in Toronto on
Mch. 28-30 with about 2,000 Inspectors, Principals, Teachers,
Trustees and other delegates in attendance and 27 Sectional
meetings under way. The President, James Davidson, B.A., was
in the chair and a long series of addresses were given commenc-
ing with those of Hon. R. H. Grant, Minister of Education, and
Sir R. A. Falconer. The Rev. Dr. D. Bruce Macdonald, Presi-
dent, Canadian Amateur Athletic Union, dealt with "Athletics in
the Life of the People"; Maj.-Gen. Sir A. C. Macdonell with
"Ideals in Sport" ; A. A. Jordan, I.P.S. of East York, with Rural
School Consolidation ; F. P. Gavin with the Adolescent School
Act; W. A. Amos of the U.F.O. with Revision of Regulations;
Mrs. W. E. Groves with "The Educational Crisis." Other
speakers were Mrs. A. E. Todd, President of the Ontario
Women's Institutes, and Mr. Premier Drury.
A multitude of addresses were given in the various Sections
and many Resolutions passed. The more important of the latter
was the School Trustees' approval of Consolidated Schools and
their declaration in favour of voting power being given to
wives, daughters and sons of ratepayers in any Municipality.
The Public School Section urged the Department to create a
Board of Reference to deal with all disputes between school
trustees and teachers and expressed sympathy with and prom-
ised financial help, by a voluntary fund, to the Alberta Teachers'
Alliance in its fight with the Provincial Government. John
Waugh, B.A., D.paed., of the Education Department, was elected
President. The following Presidents of Sections and Depart-
ments were elected :
Department or Section
President
Elementary Miss I Shannon
College and Secondary Schools W. J. Falter, B.A
M. R.
Supervising and Training..
Reid.
Trustees Judge J. H. Scott
Public School M. W. Althouse..
Kindergarten Miss N. Dorien
Primary Miss M. Isabel Wilson
Household Science Miss E. MacVannel.
Modern Language Prof. J. E. Shaw
Natural Science W. H. Tuke, B.A
Classical Dean W. Sherwood Fox, ph D.
Mathematics and Physics J. F. Brock, M.A
English and History Miss K. M. Stewart, B.A
Commercial G. M. James, B.A., LL.B
Continuation School H. E. Thompson
High School Principals E. E. Wood, M.A
Inspectors '. A. J. Husband, B.A
Training Dr. P. Sandiford
Music Alex. C. Cringan, Mus. Bac
Technical and Manual Art A. F. Newland
School Health and Physical Education O. C. J. Withrow, M.D., M.R.C.S.
Reformed Spelling Prof. D. R. Keys, M.A
Home and School F. B. McCready, B.A
Ontario Public School
Men Teachers' Federation J. A. Short
Women Teachers Association Miss
E. Johnson
Place
..Goderich
..Woodstock
..Charbot Lake
..Perth
..London
..Toronto
..Toronto
..Peterborough
..Toronto
..Haileybury
. .London
..Toronto
..Toronto
..Belleville
..Bridgeburg
..Fort William
.. Brock ville
..Toronto
..Toronto
..Ottawa
.Toronto
. .Toronto
..Toronto
..Swansea
..London
604
THE CANADIAN ANNUAL REVIEW
Another Convention at this time was the 21st annual
meeting of the Ontario Library Association with 100 Libraries
represented and 250 delegates present. Addresses were given
by Fred Cook, Ottawa, B. W. N. Grigg, Waterloo, and others.
W. J. Sykes of the Carnegie Library, Ottawa, was elected Presi-
dent; W. H. Murch, St. Thomas, and William Briden, St. Catha-
rines, were chosen Vice-Presidents ; Dr. E. A. Hardy, Toronto,
was elected Secretary-Treasurer. An Association connected
with the O. E. A. was the Public School Men Teachers' Feder-
ation which organized at this time and elected J. A. Short, Swan-
sea, as President. The Ontario Federation of Home and School
Associations also met and reported 100 Associations throughout
Ontario with extension also in the West. In the formation of
these Associations the Women's Institutes, the Canadian Clubs,
the Local Councils of Women, the United Farmers and the
churches had everywhere co-operated. Mrs. A. C. Courtice of
Toronto was Secretary. The Ontario Historical Society had a
grant from the Education Department and its annual meeting
took place at Niagara on June 8 with 401 members reported, and
statements read from a number of affiliated Societies ; a special
Address was presented to Miss Janet Carnochan of Niagara and
Brig.-Gen. E. A. Cruikshank was re-elected President.
Educational incidents of the year included the opening on
Jan. 11 of Mills Hall, the new men's residence at the Ontario
Agricultural College, Guelph ; the grant, in January, by Toronto
University of a site in Surrey Place for the building of a City
Reception Hospital upon condition that students would be able
to get clinical instruction; the declaration of the Farmers' Sun,
as representing the U.F.O., on Jan. 22, that the Board of Gover-
nors of the University should be done away with, and direct re-
sponsibility for financing the University placed upon the legis-
lators in Queen's Park; the establishment by Lieut.-Col. R. W.
Leonard of a Scholarship Trust Fund of $250,000 to be utilized
amongst 16 Canadian Colleges in different Provinces of the Do-
minion; on June 16 the announcement that, as a result of an
investigation into recently-discovered cases of impersonation
and copying in connection with Toronto University examina-
tions, 8 students had been expelled and a number of others had
their examinations for the year cancelled.
In August it was stated that the French Government had
extended to two students of the University of Toronto a favour
hitherto confined to those of the British Isles, under agreement
made before the War between the British Board of Education
and the French Ministry of Public Instruction, by which a cer-
tain number of posts in the French Lycees and Universities were
awarded to the best students from Great Britain who desired
to continue their French studies. Despite the great numbers of
British applicants, this arrangement was, with the approval of
the British Board of Education, extended to Canada. On Oct. 5,
and two succeeding dates, Sir Robert Borden delivered the Uni-
I
EDUCATION IN ONTARIO; THE SEPARATE SCHOOL QUESTION 605
versity Marfleet lectures of the year before distinguished audi-
ences and dealt with the constitutional development of Canada ;
on Nov. 4 the official opening of the new Electrical Building took
place. During the year President Falconer received the degree
of Hon. D.C.L. from Oxford University. Another incident was
the fact that Flag and Fleet, an eloquent study of the British
Navy written for young people by Lieut. -Col. William Wood of
Quebec and which was under discussion in 1920 as being anti-
American, had, after some revision, remained on the Supplemen-
tary reading list of the Department. Notable retirements from
Toronto University Staff during the year were: A. J. Bell,
Professor of Comparative Philosophy, Dr. N. A. Powell, Pro-
fessor of Medical Jurisprudence, Dr. Irving H. Cameron, Pro-
fessor of Surgery for 33 years, and a surgeon of national
reputation.
Other Institutions of Higher Education in Ontario —
Queen's University, Kingston, like other institutions in Ontario, had for some
years felt the need of greater financial support and its authorities, co-operating
with other Ontario Universities, appealed to the Provincial Government and
obtained, in 1920, the appointment of a Royal Commission on University Fin-
ances. Sir John Willison was the Queen's Trustee upon this Commission, which
recommended that the annual revenue of $165,000 for 1920-21 should be in-
creased to $275,000 for the years 1921-22 and 1922-23, and afterwards, for the
three following years, to $300,000; a revision of the scale of this grant to be made
at the end of each five-year period. In addition it was recommended that a
sum of $340,000 be given to the University for the extension of its Heating plant,
the completion of its Library Fund and for Extension work. The Government
was not able to adopt the Report in detail but added $45,000 to the annual
grant of the University, bringing the sum up to $210,000, and also set aside $125,-
000 for the extension of the Heating plant.
In the Principal's Report for 1920-21, Dr. Bruce Taylor stated that, despite
disappointment at the failure of the entire adoption of the Report of the Com-
mission : "The main position has been gained. A definite relationship has now been
established between the Provincial Government and the Universities of Queen's
and Western. What we are to receive in the future will be granted not as a matter
of favour but as a matter of right." The registration in the various departments,
for the session ending Apr. 30th, 1921 was as follows: — Arts, intra-mural 674,
extra-mural 578; Science, 396; Medicine, 240; Banking, 380; total 2,268 less 9
registered in 2 Faculties, 2,259; for the 1921-22 Session a total of 2,430 students
registered, including 998 extra-mural. The Financial statement, for the fiscal
year ending Mch. 31, 1921, showed a total income for the year of $424,392; total
expenditures of $446,377; with Assets of $2,526,364 and Liabilities of $2,600,648.
The more important appointments during the College year were Prof. R. O.
Jolliffe, M.A., Ph.D., of the University of Manitoba as head of the Department of
Latin; Prof. J. T. McNeill, M.A., Ph.D., of Westminster Hall, and Prof. A. E- Prince,
M.A.,of Manchester University, to the Department of History ; Thomas Seccombe,
M.A.,; Professor in English at the Royal Military College, Sandhurst, accepted
the chair of English Literature; K. P. Johnston, B.A., B.SC., succeeded Dr. Daniel
Buchanan as head of the Department of Mathematics. At the Spring Convoca-
tion the following were given the Honourary degree of LL.D. : R. W. Brock,
M.A., F.G.S., P.R.S.C., University of British Columbia, Vancouver; Dr. James
Cappon, Kingston; Miss Helen Y. Reid, Montreal; J. B. Turner, Principal, Col-
legiate Institute, Hamilton; C. V. Corless, Manager, Mond Nickel Co., Coniston,
Ont. The Hon. E. C. Drury, Premier of Ontario, was also honoured earlier in the
year. On April 11, the following were announced as elected members of the
University Council of Queen's for a term of six years: W. F. Nickle, K.C., and F.
King, Kingston; Dr. Victoria Reid, Toronto; A. Haydon, Ottawa; Dr. D. A.
606 THE CANADIAN ANNUAL REVIEW
McArthur, London; Dr. T. H. Farrell, Utica, N.Y., D. B. Calvin, Toronto;
Rev. J. Binnie, Parry Sound; Hugh Bryan, Renfrew, and D. H. Laird, Winnipeg.
Other incidents of note included the death of G. Y. Chown, M.A., ex-Registrar
of the University, and for over 30 years connected with the institution in various
official capacities, on Mch. 2nd; the conferring of the degree of Ph.D., on Prof.
J. O. McCrae, of the Department of Chemistry, by the University of Manchester;
the award of the Research studentship, offered for the first time by Trinity Col-
lege, Cambridge, to students of British or Dominion Universities wishing to be-
come candidates for the degree of Doctor of Philology, to William Harris Wynne,
a student at Queen's. The Travelling Scholarships of $500 each given at the
Queen's Theological College and their winners for the year were N. D. Patterson,
B.A., Boulardarie, N.S. ; H. R. James, M.A., Kingston. The St. Andrew's Church,
Toronto, Scholarship of $500 went to J. A. Mclnnis, B.A., Troutbrook, N.S.
Western University, London, made strong representations to the Royal
Commission, on Jan. 4, 1921, claiming that immediate needs called for a sum of
$1,300,000, while maintenance requirements, for a 5-year period to follow, were
$1,240,000. The Royal Commission recommended to the Ontario Government
that the grant for maintenance should be $200,000 a year for the next two years
and a grant of $250,000. for the three suceeding years, and, at the end of a
5-year period, these amounts should be readjusted for a further period of five years
by a Court of Reference to be appointed by the Lieut. -Governor in Council.
The Government decision for 1921 was a grant of $800,000 for new buildings.
The enrollment in Arts, Medicine and Public Health for the College year 1920-21
was 426, plus 108 Nurses-in-training. For 1921-22, 429 students registered in Arts,
113 in Medicine with 34 taking full-time and part-time work in Public Health
— a total of 576, exclusive of the Nurses-in-training, or an increase of 156.
In spite of financial difficulties, the institution expanded along several lines.
On Nov. 17, 1921, the new Medical School, which had been erected at a cost of
$500,000, was formally opened by the Hon. R. H. Grant, Minister of Education,
and the Hon. Wm. J. Roche, Chancellor of the University; the Extension Depart-
ment carried on a series of instructive lectures, in London, and also in many of the
towns and cities of Western Ontario. A ten-weeks' course was given to Journalists
during the spring of 1921, six lectures a week being delivered upon English Litera-
ture, Sociology, Journalism, History, etc. ; in October, a night class in Commercial
Law was started for the benefit of young business men in the city ; the new Course
in Public Health carried on at the Institute of Public Health, in affiliation with
Western University, had a total registration of 530 students for the 1921 Autumn
term; the Victoria Hospital Trust became affiliated with Western University;
the University Board of Governors obtained control of appointments to the Hos-
pital staff; the University C.O.T.C. was reorganized and over 100 students signed
the roll to undergo the course of training.
Victoria College, Toronto reported a registration of 598 students in 1921,
with 98 graduates in Arts and 45 in Theology; the Financial statement showed total
Assets of $2,212,374 of which $1,168,054 was endowment. Through the generos-
ity of Sir John Eaton, the College secured, during the year, the only complete
collection of the writings of John and Charles Wesley. It was made by Rev.
Richard Greer of Didsbury College, Manchester, England, and comprised 500
volumes. On Oct. 1, the Rev. Charles Allen Seager, M.A., D.D., was appointed
Provost and Vice- Chancellor of Trinity College, succeeding the Rev. T. C. Street
Macklem, D.D., who had resigned after holding the Headship of the University for
21 years. Another event during the year was the founding of a Lectureship for
Divinity Alumni by the Very Rev. Dr. Starr, Dean of Ontario, and, also, the
acceptance by the Corporation of an offer from Coulson Tregarthen, a graduate
r esiding in South Africa, to found a Chair in Church Music.
On Jan. 5, the Toronto Presbytery nominated Rev. Dr. W. H. Sedgwick, of
Central Presbyterian Church, Hamilton, for the Chair of Homiletics at Knox
College. At Wycliffe College, on April 29, four stained glass memorial windows in
the College Chapel were dedicated to the memory of those students who died in the
World War, while in the College Hall an Honour Roll of Service was unveiled in
honour of those who had enlisted. On Oct. 21, in connection with the opening of
the new Term, the degree of Hon. D.D. was conferred "in absentia" upon the Most
THE PENETANGUISHENE TERCENTENARY CELEBRATION 607
Rev. F. H. DuVernet, Archbishop of Caledonia, Metropolitan of British Col-
bia, and a poi trait of Principal O'Meara was unveiled in honour of the latter's
long and valued connection with the College.
McM aster University had an attendance of 285 students in Arts and The-
ology, for the year 1920-21, and in affiliation with it were Woodstock College
(preparatory) with 122 students, and Moulton College (ladies) with 160. The
election, held on Oct. 19, to membership on the Board of Governors resulted in
three of the retiring members being re-elected : James Ryrie, J. K. McDermid and
B. C. Fox with John Gillies as the 4th member. On May 18, at the Spring Con-
vocation, the following Honourary degrees were bestowed: LL.D. on Rev. Fred-
erick Eby, Professor of Education in the University of Texas and Sir John Ken-
nedy of Montreal; D.D. upon Rev. James Henry Rushbrooke of London, Eng-
land, European Commissioner of the Baptist World Alliance, and Rev. John
Rupert Stillwell, who had been a Baptist missionaiy in India for 35 years.
Among the Secondary and Preparatory Colleges, Ridley College, St. Catharines,
held its Prize Day functions on June 22nd, and the resignation of Principal J. O.
Miller, D.D., after 32 years service, was announced; his successor was H. C. Griffith,
M.A. who had been on the staff for many years.
On June 9, at Belleville, the first sod of a greater Albeit College building was
turned, by R. J. Graham, ex-Mayor of Belleville. Principal Baker stated that
$425,000 had been secured toward the estimated cost of $500,000. June 13-14
marked the closing Exercises for Bishop Strachan School, Havergal College, and
Branksome Hall, in Toronto. On Oct. 21, a criticism of the Matriculation examin-
ations was the feature of an address by Principal Grant at Upper Canada College,
who said that the Junior Matriculation examination was satisfactory, but that
too many subjects had to be taken for Honour Matriculation. He favoured only
2 compulsory subjects, leaving the students a wide choice for the othets. On Nov.
21st, the first meeting of the 21st Council of the Ontario College of Pharmacy was
held at the College. The following officers were elected for two years : President,
Burwell Griffin, Hamilton and Vice-President, T. E. McLelland, Gait.
Penetanguishene Tercentenary Celebration. On Aug. 1-6,
amid scenes replete with historical associations, the town of Penetanguishene
celebrated its 300th anniversary and commemorated the deeds of the gallant
French- Canadians in their search through this region for an unknown West.
During a week of brilliant pageantry there was an ever-present and absorbing
thought of the deeds and spirits of these early Canadians as they ventured, far into
vast waters and forests of a new land, to seek and serve their Country or their God.
Typifying the idea, and of more than local interest, was the landing, at this point,
of the great Champlain, in 1615, when on his first expedition to the country of the
Hurons. He was accompanied from Quebec by Father Le Caron of the Franciscan
Order, who was fated to reach Huronia before him, and, like many of the de-
voted missionaries such as Breboeuf and Lalement, the martyred Jesuits, who
followed him, to make a famous place in the history of this country and of the Con-
tinent. Merged in these thoughts was one, on the part of the Rev. Father Athol
Murray who initiated the Celebration, that it would help to bring closer together
the feelings of the French and English Canadians of this later time. In the pro-
ject of 1921, he was ably supported by J. T. Parett, Mayor of Penetanguishene,
C. E. Wright, President of the Historical Society, and Rev. W. F. Gilmore of the
same town.
On Aug. 2nd proceedings opened with solemn High Mass in the Jesuit
Memorial Church, the celebrant being Monseigneur Kidd of Toronto. The ser-
mon, in tribute to Jesuit and Franciscan heroism in Huronia, was given by Rt. Rev.
Father Doyon, Superior General of the Dominican Order, St. Hyacinthe, and was
followed with the unveiling of a handsome statue in bronze, of Father Joseph Le
Caron, the Recollet, said to be the first white man to reach Ontario. The cere-
mony was performed by Archbishop McNeil of Toronto, and an eloquent historical
address was delivered by the Very Rev. Dr. W. R. Harris, of Toronto. The next
event was the unveiling of two figures in bronze (Ontario and Quebec) symbolic of
the bonne entente between the two Provinces, with that of Ontario unveiled by
Hon. E. C. Drury, Prime Minister, and that of Quebec by Hon. J. E. Caron, Min-
ister of Agriculture, who represented the Quebec Government.
608
THE CANADIAN ANNUAL REVIEW
This was succeeded by the unveiling of a Tablet to Abbe Laboreau, to whose
efforts were due the erection of the Jesuit Memorial Church in Penetanguishene —
the only Catholic Church in Canada built with funds provided by Protestants and
Catholics together. Other memorials in the form of tablets and cairns, commem-
orated the work of Francis Parkman; the erection of the British Fort, on Penetang
Bay, during the war of 1812; Sir John Franklin, who commenced one of his
journeys to discover the North- West passage from this point; and the heroes of
the Great War. The addresses of Mr. Premier Drury and Hon. Mr. Caron, and
their declarations, marked the first public appearance of members of the two
Provincial Governments on the same platform and speaking on the same subject,
since the clash over language rights had aroused some controversy between the
two Provinces.
Mr. Drury was emphatic in his denunciation of those who tried to further
their personal interests and awake prejudices by creation of misunderstandings
between the two great races in Canada : "I hope that the meeting of the two races
here, to-day, will inaugurate a period of better understanding and may these
pillars stand forever as an acknowledgment of our realization of the fact that
Canada can be built up only on a basis of goodwill, understanding, and broad
tolerance." Mr. Caron, in his address, pointed out that as far as the French-
Canadians were concerned, the relations between Ontario and Quebec could not
be narrowed down to the strict working of the Confederation pact and that French-
Canadians living outside of Quebec, in the other Provinces, should receive the
same treatment that the English people received in Quebec; "We want a sufficient
moral guarantee that the abuse, thrown at Quebec by a certain press and by un-
scrupulous private individuals, will not be repeated at the next favourable oc-
casion. We stand to-day as we have stood, for broadness of spirit, justice and
toleration."
Others assisting in the ceremonies were Maj. -Gen. E. A. Cruikshank, Presiden-
of the Ontario Historical Society; Hon. W. E. Raney, Attorney-General of Ont-
tario; Hon. Cyrille F. Delage, Superintendent of Public Instruction in Quebec;
Hon. Dr. H. J. Cody; Dr. W. R. Orr, Provincial Archaeologist; Mgr. Filion,
Superior-General of the Jesuit Order in Canada; Mgr. Doyon, Superior-General
of the Order of St. Dominic, Province of Canada; Mgr. J. K. Kidd, President of
the St. Augustine Seminary, Toronto. August 3rd was marked by the actual treaty
of Peace between the supreme chiefs of historic and hereditary foes — the Hurons
and the Iroquois. They smoked the calumet and buried the war- tomahawk.
Chief Ovide Sioui of the Hurons, represented his nation in this dramatic scene
where the pact of brotherhood and peace was sealed with Chief Andrew Staats,
the modern leader of the Six Nations, who had driven the Hurons from the land.
At the conclusion of this ceremony, an historical paper was read by Lieut. -Col.
Alexander Fraser, Provincial Archivist, giving a descriptive story of the Huron
nation and the deeds of the pioneer explorers in this region. The story of a later
period was delivered by Benjamin Apthorp Gould, a well-known literary man of
Toronto. The solemnity of the religious ceremonies and the picturesqueness of
the pageantry combined, with environment and traditions, to make the whole
Celebration a most interesting historic event.
For 15 years Sir Adam Beck had dominated
the Power situation in Ontario ; possessed of the
capability, initiative and vigour so essential to a
protagonist in any line of development, he also had
the temperament which disliked opposition and
resented criticism ; up to 1920 and 1921 he had re-
ceived very little of either after overcoming those
of the pioneers of private electrical development in
Ontario — Pellatt, Mackenzie and Nicholls. During
1921, however, he faced opposition on all sides and spent much
of the year in keen defence of his policies and vigorous on-
The Ontario
Hydro -
Electric
Power Com-
mission; Sir
Adam Beck
and the
Radials.
THE ONTARIO HYDRO-ELECTRIC POWER COMMISSION 609
slaughts upon his critics. The Hydro-Electric plans, as com-
pleted and operative, had few enemies ; the Radial proposals had
many and the Chippawa Canal project was feared because of its
cost. Politics were interjected into the issue, and the U. F. O.
party, outside the Legislature, was opposed to the intended ex-
tensions of the Power system and to Sir Adam's continued con-
trol, while various financial journals, already against public
ownership in principle, denounced Hydro-Electric policies from
another side.
None the less were this year and 1920 the most productive
of all Sir Adam's period of effort. The important Power plant
at Nipigon was completed ; the Chippawa Power Canal came
into operation at an expenditure running up to 60 millions with
many millions more for completion ; cheaper power was ar-
ranged in certain cases for the farmer; the Sandwich, Windsor
and Amherstburg Railway was acquired by the municipalities
under a Provincial guarantee, and the Guelph Radial was turn-
ed over to the Hydro-Power Commission for operation; the
Yonge Street situation, although "cleaned up," was not closed
up, and the Metropolitan Railway and the Port Credit and Scar-
borough lines were acquired, also under a Provincial guarantee ;
the Mackenzie generating plant at Niagara Falls and the trans-
mission lines to Toronto and the Toronto Electric Light plant
were purchased by the Commission for the City with partial
guarantees by the Government. The Hydro-Electric Power
Commission during 1921 — up to July — was composed of Sir
Adam Beck, Kt., U,.D., (Chairman), Hon. I. B. Lucas, K.C., and
Lieut.-Col. Hon. D. Carmichael, D.S.O., M.C., with W. W. Pope as
Secretary and F. A. Gaby as Chief Engineer. On July 26 Mr.
Lucas, who had been a member of the Hearst Government, re-
signed, and F. R. Miller of Roger Miller & Sons, and a member
of the Toronto Transportation Commission, was appointed his
successor.
At this time Canada, with 20 per cent, of the world's total
water-power, had about 20 per cent, of the world's development
in Electric power; to the Electrical operation of (1) the Ontario
Development Company and Sir W. Mackenzie and his associates
and (2) to the much greater work of the Power Commission,
Ontario owed most of its 1,000,000 horse-power development out
of nearly 6,000,000 h.-p. which it possessed. The plan adopted,
following upon the Power Commission Act of 1907, developed
a form of partnership between the municipalities and the Pro-
vincial Government; in 1920 the 11 Systems throughout the
Province, supplied by the Commission, received 337,170 h.-p.,
and electric energy was furnished to 500 farms located in various
parts of the Province and to, approximately, 5,000 other rural
consumers. The 12 pioneer municipalities which first entered
into the projects of Sir Adam Beck now had Hydro-Electric
plants costing $14,530,748, other Assets stated at $4,750,245, Re-
serves of $5,533,474, Liabilities of $12,433,408 and a Surplus of
610
THE CANADIAN ANNUAL REVIEW
Debenture
Debentures
Plant Number
Balance
Sinking
Renewals of
and
Fund
Reserve Util-
Other
and Other
and ities
Liabilities
Reserves
Surplus Served
$13,848,668.40
$ 540,705.16
$ 674,053.33 47
17,178,853.44
766,683.16
1,491,044.53 68
21,549,289.19
1,024,234.58
2,304,119.85 93
24,099,428.99
1,451,354.43
3,259,324.64 111
26,767,777.89
1,817,551.17
4,242,580.88 127
28,846,535.50
2,245,881.82
5,703,739.86 151
31,127,009.00
2,808,852.55
6,814,346.26 155
33,609,663.85
3,525,108.94
8,610,857.42 167
$1,314,080; the same 12 Municipalities had, since 1908, reduced
their rates by 75 per cent., according to the Hydro-Power Com-
mission's official statements. The following table shows the
growth of the Niagara System — one of 11 — in the 8 years of
1913-20, and excluding the recently-acquired Ontario Power Co. :
Plant
and
Other
Date Assets
1913 ... $15,063,426.89
1914 19,436,583.13
1915 24,877,643.62
1916 28,810,108.06
1917 32,827,909.94
1918 36,796,157. 18
1919 40,750,207.81
1920 45,745,630.21
An official financial statement (the latest available) for the
year ending Dec. 31, 1920, and dealing only with the relations of
the Commission and the Municipalities, gave the Assets of the
Hydro-Electric Power Commission — including the Commission's
Plant (Lines and Stations) apportioned to Municipalities ($14,-
969,018), Municipal Systems and other Plant Assets ($30,776,-
611), Ontario Power Co. Plant, etc.— as $73,052,213. The Lia-
bilities— including Commission's borrowings from Provincial
Government, apportioned to Municipalities ($14,969,018), the
latter's Debenture Debt and other liabilities in respect to Local
Systems, ($18,640,645), the Ontario Power Company's Debt and
liabilities in respect to the Development Plant at Niagara Falls
— were $59,362,017; the Reserves, including Sinking Fund, Plant
Renewal, etc., were $10,890,873 and the Surplus $2,799,323.
The comment of the Power Commission upon these figures
was: "This satisfactory financial condition has been reached
in an operating period of 10 years, 5 of which were fraught with
unprecedented difficulties created by the greatest economic up-
heaval the world has ever witnessed. Despite increased costs of
operation, which none could foresee, or even anticipate, the en-
terprise has more than maintained its solvency, notwithstanding
the fact that it has, during the period under review, remuner-
ated its co-partners to the extent of approximately 8 millions of
dollars through the medium of rate reduction." Of course these
figures did not include liabilities in respect to the Chippawa pro-
ject or accounts in full between the Commission and the Gov-
ernment. As to this, the Deputy Treasurer of Ontario stated to
the Radial Commission (Feb. 4) that the Provincial Govern-
ment had advanced to the Hydro-Electric Commission up to
Jan. 31, 1921, a total of $73,312,501— of which $27,550,000 was
for the Chippawa Canal.
The Power Commission and the Legislature. Apart from
the Radial question the Power Commission was considerably
discussed in the Legislature during 1921, and the attitude of the
Drury Government there and to the public was one of evolution.
The Farmers' Sun was persistently attacking Sir Adam Beck and
THE ONTARIO HYDRO-ELECTRIC POWER COMMISSION 61 1
the U. F. O., apparently, wanted to cut the Commission's
expenses and curb its powers — with the appointment of a Min-
ister of Power either in its place or as an over-riding authority.
The Toronto Globe strongly opposed this suggestion with argu-
ments which were summed up in its declaration on Dec. 13 that:
"The Hydro-Electric Commission has in the past been a non-
political organization, subjected to very little interference on
the part of the various groups of politicians who have governed
Ontario since the Commission was formed." The efficient tech-
nical organization of the Hydro-Electric Service was described
as absolutely beyond the sphere of political administration. On
Tune 26 the Report of the Legislative Committee appointed in
1920 ( J. G. Lethbridge, J. R. Cooke, John O'Neill, F. H. Greenlaw
and W. H. Casselman) to devise a more equitable system of
Power distribution was submitted to the House. The following
quotations from its Report indicate the general trend and con-
clusions :
1. Your Committee has come to the conclusion that a flat rate for
the Province is neither practicable nor advisable, but -is convinced that
much can be done to lessen the burden of providing the small urban
centres and rural districts with Hydro-Electric Service. Your Commit-
tee believes that the natural resources of this Province should be utilized
for the benefit of all the people of this Province. Therefore, your Com-
mittee recommends that a rental be charged upon all power developed
within the Province, and that such rental be paid into the consolidated
revenue of the Province.
2. The Committee believes that $2.00 per horse-power would be a
reasonable rental. There is now developed within this Province 999,132
h.-p.. This would yield the Province a revenue from rentals of almost
$2,000,000 per year available to assist and encourage agricultural districts,
where the price of power is now unduly high, in utilizing electric light
and power in the home and upon the farm.
3. While the Committee is not in favour of a flat rate for the Pro-
vince, it is in favour of enabling each rural municipality, or municipal
power zone, to have a flat rate for all residents within its boundaries,
and your Committee would recommend that the Government should
generously assist in some way the transmission of electric light and
power to country districts.- Your Committee also believes that the Hydro-
Electric System should pay in taxation to this Province, in the same pro-
portion as would a private individual, upon the same property in the
different municipalities in which it is situated, and estimates that a
revenue of at least $500,000 a year would be derived from this source.
The water-powers developed by nine large paper, pulp and
other concerns to a total of 110,000 h.-p. were specified, also,
as giving no rental to the Province ; from a list of lesser water-
powers the Province did get a lease-rental of $19,787. It was
suggested that the Government should aid rural industries —
the farms — by a sum equal to 50 per cent, of the additional
cost in excess of $30 per h.-p. with a maximum of $25 per h.-p.
per year ; further assistance might be granted to the local Power
Commissions of a sum sufficient to meet 80 per cent, of the
annual charge necessary to pay for the cost of building and
maintaining in rural districts the low tension transmission lines
required for rural distribution — such aid not to exceed 50 per
612 THE CANADIAN ANNUAL REVIEW
cent, of the revenue derived from power rentals. Reference was
made to the $105,000,000 of Hydro-Electric liability which the
Province had incurred and a question was asked as to what had
been received in return.
Addressing a Toronto meeting on Jan. 28, Mr. Premier
Drury declared that the principle of a tax on power developed
was good, but he was inclined to think that the two dollars per
h.-p. suggested by the Committee was too high. He pointed
out that the Government was in no way responsible for the
Report : "Cheap power for the farmers is absolutely necessary.
They are the people who need it more than any other people
in the country." The comment of the Farmers' Sun was to urge
appointment of a Minister of Power. On Apr. 27 it declared, in
connection with a Hydro-Electric vote of $29,000,000 that : "It
is not responsible government, nor is it democracy, to hand over
a huge sum of money to an irresponsible body of men, no matter
how competent they may be." On Apr. 13 Mr. Drury told the
Legislature that, owing to the financial situation, the Govern-
ment would be. unable to put into effect the Committee's sug-
gestions— either as to taxing the Commission or taxing Electric
power. Meanwhile, on Feb. 21, by invitation of the Premier,
Sir Adam Beck placed before an informal gathering of about 60
members of the Legislature, his views as to the development of
Hydro-Electric Services in general and regarding the Report
of the above Committee in particular. He spoke at length and
described the whole enterprise as essentially a municipal one.
As to the taxation proposals and the super-tax to aid rural
distribution, he said: "We are not a Company making money.
We are selling our product at its actual cost. If you tax us, you
simply take your money from one pocket and put it in the other.
Quebec is offering free sites for industry, and Ontario is pro-
posing to tax — yes, super-tax, this industry." There was, he
thought, one way whereby farmers might reduce the cost of in-
stallation and equipment. This lay in co-operation. Let farm-
ers buy the necessary materials in bulk lots ; let them cut, haul
and spot the poles ; let them dig the holes and, to a large extent,
erect their own lines. Allowing for a Government grant of one-
third of cost, farmers who so co-operated could reduce by an-
other third the cost of their own systems. Sir Adam, also,
stated (Globe, Feb. 23) that before very long the people of On-
tario "would have an investment of $212,000,000 in generating
plants and transmission and distribution systems, with over
1,000,000 electrical horsepower available for use; that if it were
necessary to produce this quantity of energy by the consump-
tion of coal, the minimum expenditure would be $36,000,000 for
generation alone ; that the actual cost of generating 1,000,000
h.-p. by water in Ontario would be less than $10,000,000, and that
the selling price — providing fully for sinking and replacement
funds — would range from 12 to 15 millions.
On Apr. 12 the Hon. D. Carmichael explained the Hydro-
Electric Estimates to the Legislature and stated that the Chip-
THE ONTARIO HYDRO-ELECTRIC POWER COMMISSION 613
pawa Power development would cost the Province, in capital
investment, approximately $55,000,000 or about $100 per horse-
power; this would mean, at 6 per cent., about $6 per horse-
power annually with another $4 for developing the power. On
Apr. 13 the Report prepared in 1920 by H. L. Cooper & Co., of
New York, as to the cost of the Chippawa Canal, was tabled, and
showed an estimate of $71,988,626 for 450,000 h.-p. and $88,930,-
506 for 600,000 h.-p. ; at the same time, that of F. L. Stuart and
H. S. Kerbaugh, prepared in 1920, was submitted, and gave an
estimated total cost of $52,271,759 based upon 450,000 h.-p; that
of R. S. Lea and R. D. Johnson, of New York, declared the
Power Commission's estimates of cost to be "feasible and de-
pendable," and the conception and design to be "simple and ef-
fective."
A debate took place on Apr. 25 upon Mr. Raney's Bill to
amend the Power Commission Act. Under the existing law
Sir Adam Beck of the Hydro Power Commission had the right
to draw a salary of $6,000 a year, and his two associates to draw
$4,000 each. The Attorney-General's amendment proposed,
among other things, to make the salaries of the two Commis-
sioners $6,000 each, and to make the law retroactive. Mr.
Howard Ferguson (Cons.) asked why the Chairman was not in-
cluded in this legislation; it was alleged that he was drawing
through the Power Commission — partly from the Province and
partly from the Municipalities — a salary of $12,000 and from the
Ontario Power Co. (as President since its purchase by the Com-
mission) another $6,000. Mr. Raney stated that they could not
get the facts in this matter from either the Company or the
Commission. The Bill was passed as to certain details, but the
salary clauses were eliminated.
Other Hydro legislation of the Session included a measure
providing for aid to rural districts in respect of Hydro-electric
power and under which there was to be paid to the municipality
or local commission, distributing the power, upon recommenda-
tion of the Power Commission and order of the Government, a
sum not exceeding 50 per cent, of the capital cost of construct-
ing and erecting in the rural power zone the primary trans-
mission lines and cables required. The Bill also provided for
the establishment of a Hydro-Electric Power Extension Fund
to which the above amounts were to be credited together with
(1) a sum equivalent to the revenue derived from the rentals
payable under agreements between the Commissioners of the
Queen Victoria Niagara Falls Park and the companies develop-
ing power and (2) a sum equivalent to the total amount falling
due to the Province from the rentals of water-powers since Jan.
1st, 1918. The Bill was debated at length on Apr. 29. The
Conservative leader (Howard Ferguson) described the recent
Committee and its Report as ignored, the farmer as "gold-
bricked," and the small centres as cut out of consideration; he
demanded that Agriculture should get more than what he termed
614 THE CANADIAN ANNUAL REVIEW
one per cent, of Hydro-Electric distribution, and declared the
whole thing to be absolutely useless to the farmer, who was
getting nothing out of a 100-million expenditure.
Mr. Premier Drury replied at length. He argued against
the Power bonus proposals of the Committee as adding com-
plexities to the already complex system, as making for patch-
work conditions and adding greatly to expenses* and stated that
high-priced power in small centres was due to the small local
consumption. He added: "The price of electricity depends en-
tirely on the transmitting of it, and the number of horse-power
you can get at the end to share the expense. The generation of
electricity is uniform. The difference is in the cost of the trans-
mission lines, and if you help the transmission you solve the
problem." Hence the building of rural lines (assisted by the
Government) would aid the small centres by making them dis-
tributing centres and reducing local prices of power as well as
farm rates. Then Mr. Drury made this statement : "Frankly,
I think the present Hydro-Electric System is faulty through its
great complexity. Power at cost sounds well. But power at
cost with all the factors that enter into the cost so complex that
the average citizen cannot understand, is different. He doesn't
know where he is. I believe the municipalities are runing into
a time when they cannot see the way out."
W. H. Casselman (U.F.O.), J. G. Lethbridge (U.F.O.),
J. W. Widdifield (U.F.O.), John O'Neill (Lib.), T. Marshall
(Lib.), and J. R. Cooke (Cons.) — all but Mr. Marshall mem-
bers of the Committee whose Report was under consideration —
strongly opposed the measure. Mr. Cooke's speech attracted
special attention, and he urged, with vigour, the appointment
of a Minister of Power — claiming that it ought not to conflict
with the Power Commission. But he added these words : "I
believe that Sir James Whitney, when he advocated the estab-
lishment of a Department of Power, looked forward to the day
when, under favourable legislation prompted by the advisability
of encouraging public ownership, there would be built up in
this Province such a huge organization as would seek to domi-
nate this Legislature and drive out of public life any man who
would dare oppose its will." He estimated 100 to 200 millions
of additional Power expenditure in future and urged caution.
All these speakers advocated the $2.00 Rental tax, but they did
not actually vote against the measure as finally amended and
passed.
Another debate on the 29th, associated with Hydro-Electric
matters, evoked an assurance from the Premier to Mr. Hartley
Dewart (Toronto Star report) that, commencing next year, the
annual Public Accounts would set forth Hydro expenditures
with the same detail as was required from all Departments of
the Government. Other Power legislation included an Act
ratifying an agreement between the Power Commission and the
City of Guelph and vesting in the Commission all the Assets,
THE ONTARIO HYDRO-ELECTRIC POWER COMMISSION 615
undertakings and property of the Guelph Radial Railway and
giving full powers for control and operation of the Railway in
the City of Guelph; an Act authorizing the Commission, for the
City of Toronto, to purchase the distribution systems of the
Toronto and Niagara Power Co., the Toronto Electric Light Co.,
Ltd., and all tracks, poles, lines and works of the Metropolitan
division of the Toronto and York Radial Railway situate upon
the highways within the limits of Toronto — giving also power of
control to the Toronto Electric Commission and authority to
the City to transfer to the Power Commission certain railway
assets on the Kingston and Lake Shore roads ; still another Act
authorized the Hydro-Electric Power Commission to purchase
from the Toronto Railway Co. the shares, etc., of the Toronto
Power Co., Ltd., the Toronto and York Radial Railway Co.,
the Schomberg and Aurora Railway Co., the Toronto and Scar-
borough Electric Railway and the Metropolitan Railway Co.
The Hydro- Electric Railway Commission of Enquiry. The
question of constructing a series of Electric Railways connecting
the greater cities and centres of the Province with the rural dis-
tricts and the Niagara System, had long been an ambition of
Sir Adam Beck's only second to his Hydro-Electric Power plans
though, of course, subsidiary to them. Investigations had been
made by the Power Commission in 1919-20 and money spent
on preliminaries; Bonds issued for $11,360,363, re the Port Credit
to St. Catharines line, had been guaranteed by the Government
as well as those of an Essex Border line. The Hearst Govern-
ment was not opposed to the general project; the Drury Gov-
ernment wanted to know all about it with a tendency to regard
the policy as financially dangerous. By 1921 the project in-
cluded about 325 miles of line and of this 50 per cent, was al-
ready constructed; beyond this was an indefinite and possibly
costly extension of the scheme. Appointed on July 21, 1920, the
Hydro-Electric Railway Commission — popularly known as the
Sutherland or Radial Commission — was composed of Hon. R. F.
Sutherland of the Ontario Supreme Court, Brig.-Gen. C. H. Mit-
chell, C.B., C.M.G., D.S.O., c.E., Fred Bancroft, William A. Amos and
A. F. McCallum, c.E.
Its instructions were "to enquire and report upon the whole
question of Hydro-Electric Railways, and all matters which, in
the opinion of the Commissioners, are relevant thereto; (2) to
make such suggestions and recommendations in connection with,
or arising out of any of the subjects thus indicated, as in the
opinion of the Commission may be desirable." Other subjects
were specified for consideration and were duly dealt with. An
immense amount of material and information and varied evi-
dence were collected during the 12 Sessions held up to July 30,
1921, when the Report, signed by four of the Commissioners
was submitted to the Government with a Minority Report signed
by Mr. Bancroft. The Commission had begun taking evidence
in September, 1920, after personally going over the ground where
616 THE CANADIAN ANNUAL REVIEW
Radials were projected, over the lines which the Power Com-
mission proposed to purchase on behalf of the municipalities
and over Railway lines in the United States which were con-
sidered as being comparable in certain respects.
The list of witnesses was lengthy and representative. The
official and engineering, financial and expert members of the
Hydro-Electric Power Commission's staff were heard; a large
number of Mayors and representatives of Municipalities testified
as to experiences, conditions, costs and expectations ; business
men and manufacturers, representatives of the U. F. O. and the
farmers and fruit-growers, Provincial Government officials and
the heads of popular organizations were heard; much technical
testimony was given by Canadian and American experts in rail-
way matters, electricity, radials, engineering, public utilities,
scientific conditions and experiences. Robert McKay, K.C., was
Counsel for the pro-Radial Municipalities and R. S. Robertson
for those opposed to Radials, I. F. Hellmuth, K.C., for the Com-
mission of Investigation and C. C. Robinson for the Power Com-
mission.
Much of the evidence sought and obtained was regarding
costs and likelihood, or the reverse, of the proposed Radials
being made profitable. Late in June the arguments of Counsel
were heard; Mr. Robertson claimed from United States ex-
perience and the fact of Railway competition that the Radials in
Ontario could never pay; Mr. McKay contended that the lines
could be operated without loss and would pay for themselves in
50 years ; Mr. Hellmuth declared the whole Radial project to
be "unsound, impracticable and unnecessary" and in some re-
spects "near to madness," and denounced, especially, the dupli-
cation of lines involved. The Reports, as finally presented, filled
a 500-page volume, while the evidence consisted of 27 type-writ-
ten volumes of 13,376 pages, with an expense to date of $469,754,
as stated by Mr. Premier Drury. The findings of the Majority
Report were as follows :
1. The financial condition of Electric Railways in Ontario and the
United States, in and prior to 1920, has been so precarious and unsatis-
factory, and the outlook for improvement so dubious and discouraging,
that the construction of the proposed system of Electric Railways should
not, in our judgment, be entered upon unless the evidence of competent
operating experts fully justifies the conclusion that they will be self-
supporting.
2. Upon full consideration of the evidence, and the proper weight
to be given to the witnesses, we are of opinion that the proposed Elec-
tric Railways would not be self-supporting.
3. We are of opinion that the construction of the proposed Electric
Railways, paralleling and competing as they would with the Canadian
National Railways, would be unwise and economically unsound, and
would strike a serious blow at the success of Government ownership.
4. We are of opinion that until the Chippawa Power scheme, now
estimated to cost $60,000,000 or upwards, is completed, and has been in
operation for sufficient length of time to be self-supporting, the Prov-
ince would not be justified in endorsing for the construction of an
Electric Railway system at an initial estimated cost of $45,000,000.
THE ONTARIO HYDRO-ELECTRIC POWER COMMISSION 617
5. We are of opinion that the endorsement, by the Province, of
bonds of the Hydro-Electric Power Commisssion for systems of Electric
Railways in various parts of the Province, at the instance of the Muni-
cipalities concerned, is highly dangerous and may lead the Province into
great financial difficulties. The endorsement for one locality would give
rise to demands for the like accommodation for other localities, which
it will be hard for any Government to refuse, and might result in the
Province being drawn into serious financial liabilities, and we would
therefore suggest that Government endorsement of such bonds should
be discontinued.
6. Further, we are of opinion that the expenditure of $25,000,000
on improvement of Public Highways in the Province having been begun,
it would be unwise to commence the construction of the Electric Rail-
ways in question until the effect in the improvement of these Highways
has been ascertained, and the use of them by motor cars and motor
trucks (whose competition with Electric Railways has been found -so
keen and difficult to meet elsewhere) made clearly apparent.
7. We are further of opinion that the rapidly increasing Debts and
financial committments of the Dominion, Province and Municipalities
have aroused well-founded apprehension in the minds of thoughtful citi-
zens, and are a cogent reason against the embarkation at this time in the
construction of the contemplated Electric Railways.
There were a number of subsidiary conclusions or com-
ments: (1) That delay and expense were occasioned by the
course pursued by the Power Commission of Ontario, and the
Municipal Hydro-Electric Railway Association in connection
with the investigation; (2) that the Power Commission made a
fundamental error when preparing the (Radial) estimates in
not seeking and securing the assistance of experienced operat-
ing men; (3) that the development and sale of power was an
essential public utility that rightly tended to monopoly and that
there had been a good measure of success under the Power
Commission in this regard ; (4) that it was questionable whether
a Radial railway could, under all existing circumstances, be prop-
erly called an essential public utility or real necessity; (5) that,
on June 15, 1921, the Debt of the Province of Ontario (direct
and indirect) was $167,082,414 and the advances of the Province
to Hydro-Electric Power at that date were $87,812,501 with
$15,437,700 more appropriated by the Legislature and unexpend-
ed. Mr. Bancroft's Minority Report was opposed to most of
these conclusions, and he recommended:
1. That the Government adopt the principle of publicly-owned and
operated Electric Radial Railways for the Province of Ontario.
2. That the Government instruct the Hydro-Electric Power Com-
mission to proceed at once with negotiations to complete binding con-
tracts or agreements.
3. That upon the completion of such agreements or contracts or
the choice of alternate plans the Power Commission shall at once place
before the Government the result.
4. That, following the action indicated above, the Government shall
request the Power Commission to recommend the most advantageous
and economical time to commence construction of Radial Railways.
5. That the Power Commission should have as a member one of
the best and most experienced Railway men, in operation and traffic, who
can be found.
618 THE CANADIAN ANNUAL REVIEW
6. That the scheme of Radial Railways outlined before the Royal
Commission, amplified and improved by experts, will be of immense
benefit to the territory involved and the Province as a whole, and there
is every reason to believe will be self-supporting.
The comment of the public was varied, and the Toronto
Globe declared (Aug. 6) that "the municipalities will carry out
the project on their own responsibility, unless the Government
resorts to obstruction," while the Farmers' Sun (Aug. 13) claim-
ed that Sir Adam Beck's estimate for the cost of Radials was
$52,000,000, and if the Chippawa precedent was followed the
total would be $250,000,000. It declared that : "The Radial pro-
ject must be abandoned by the Government; if municipalities
want to build Radials, or if private capital will undertake the
project, there would be no one to complain, but in neither case
can the Government be asked to guarantee the bonds." The
press in the cities, towns and smaller centres divided somewhat,
as preceding views, in favour of or against Hydro-Power, would
indicate, and amongst those favouring the Report and the hold-
ing-up of Radial construction were the Hamilton Herald, Orillia
News-Letter, Orillia Packet, New Liskeard Speaker, Fergus News-
Record, Dunnville Gazette, Aylmer Express, Sterling News-Argus,
Chesley Enterprise, Pembroke Standard, Barrie Examiner, Picton
Gazette, London Echo, Ottawa Journal, Collingwood Bulletin, Forest
Free Press. Action endorsing the Majority Report and opposing
Radials was taken in several directions, and included Resolu-
tions by the Oshawa Board of Trade and the Welland City
Council.
The other side of the subject may be briefly stated. The
Executive of the Ontario Hydro Radial Association held a special
meeting in Toronto (Aug. 18), denounced the Majority Report,
expressed assurance that the project would go on and decided to
hold a series of meetings in its behalf ; the Toronto Globe (Aug.
20) declared that the proposed Radial lines traversed one of
the most densely populated and most intense manufacturing
sections of Canada, and that tributary to it there resided prac-
tically one-seventh of the entire population of the Dominion,
with a Steam Railway mileage of only 500; the Toronto Tele-
gram (Aug. 22) stated that in Mr. Drury's own riding of Halton
the estimate of the farmers was that their combined properties
would have an enhanced valuation of $5,250,000 if the Toronto-
Niagara Radial were built.
On Aug. 23, at Glencoe, Mr. Premier Drury, definitely stated
his policy as follows: "In view of various new circumstances,
the great obligations of the country for Hydro-Electric develop-
ment in a score of places, the Government must stand firm and
refuse to guarantee new bonds for further Hydro-Radial enter-
prises." At other places addressed by Mr. Drury he repeated
this statement, and carried his audiences with him. Elsewhere,
Hydro-radial meetings were being held and Resolutions passed
of a reverse nature. In Toronto, on Sept. 7, the Hydro-Radial
THE ONTARIO HYDRO-ELECTRIC POWER COMMISSION 619
Association met and was addressed by Sir Adam Beck. He re-
viewed at length the various steps taken in respect to the To-
ronto-Bowmanville, Toronto-Port Credit and St. Catharines,
and Hamilton-Galt-Elmira lines. As to the Royal Commission,
he had not yet seen a copy of the Report and would say little
about it. A Resolution was passed condemning the Commis-
sion, declaring that three of its members had interests which
made them oppose public ownership, pointing out that Mr. Amos
was a member of the U. F. O., and describing the Enquiry as
merely an excuse for the Government to change its policy. Re-
newed confidence was expressed in Sir Adam Beck ; the latter
spoke at Oakville on Sept. 16, and declared the Toronto-St. Cath-
arines' line must be built and that the Government could not with-
draw its Bond guarantee in that respect without dishonour; on
Dec. 1st, 17 Niagara District municipalities met at St. Catharines,
and decided to submit a By-law at the coming municipal elections
on the question of taking over the Niagara-St. Catharines and
Toronto lines, at a cost of $4,663,830, to be met by Municipally-
guaranteed bonds.
To this By-law proposal and a similar one in Toronto the
Premier refused his assent in a letter to Sir Adam Beck, dated
Dec. 17, on the ground that the By-laws changed the form of
Agreement between the Commission and Municipalities and
authorized the Power Commission to hypothecate the bonds of
the municipalities to raise money, which would be illegal ; at St.
Catharines, on the 20th, Sir Adam told 2,000 citizens as to this
matter that "you have a right to build at any time, any time you
see fit, without the advice or permission of any Government, or
of any Commission appointed by any Government." The Radial
issue was a distinct one in the North Oxford Bye-election, and
it resulted in the choice of the Drury candidate. On Dec. 22 the
Toronto Globe declared that the Premier in the By-laws decision
was raising the whole question of local self-government, and
claimed that Mr. Drury had repeatedly stated that the Govern-
ment would place no obstacles in the way of municipalities de-
siring to provide Radial railways at their own financial risk and
claimed that specific permission had been given in October for
the submission of By-laws, regarding the Toronto Suburban and
Niagara Central purchase proposals, to the municipalities inter-
ested under terms of the Hydro-Radial Act of 1914.
G. G. Halcrow, Labour leader in the House, broke away
from his party on this point, and on Dec. 21 denounced the
Premier and the Government for "breaking pledges to the
Municipalities"; Mr. Drury, on Dec. 21, stated that legislation
authorizing groups of municipalities to build, acquire and operate
electric lines under conditions carefully defined, would be pre-
sented at the next Session. If it was the wish of the Municipali-
ties, the Government "might permit" the Power Commission to
operate such lines. Representatives of the 17 Niagara Muni-
cipalities interested in this Radial matter met on Dec. 22 and
620
THE CANADIAN ANNUAL REVIEW
decided to take the vote of the electors with or without Gov-
ernment permission ; Sir Adam Beck at the same time issued a
statement that the Premier had, at a conference of the Commis-
sion and the Cabinet, on Oct. 12, assured the Commission that
these By-laws would be allowed to go to a vote. He argued that
the clauses in the By-law agreements, to which the Government
objected, were not material, and stated that: "I at once took
up the question of guarantee with the Dominion Government
and secured their consent to the principle of the disposal of the
roads upon a Hydro bond guaranteed by the debentures of the
various municipalities."
To this Mr. Drury responded, on the 23rd, with a denial of
any such pledge, or any recollection of discussing Radials on
Oct. 12; he renewed his objection to the changes in the form of
the Agreements. F. A. Gaby, Chief Engineer of the Commis-
sion, asserted, in reply, that the assurances in question were
given on Oct. 13 at an afternoon conference. Mr. Raney, At-
torney-General, followed with a statement that these Radial
By-laws exceeded the powers granted under the Hydro-Electric
Railway Act, and that the Agreements included in them were
not the same as were accepted in June, 1920, as forms for sub-
mission to the people. The Election based upon this municipal
vote was hotly contested with the principle of Public ownership
and operation, as well as the future of Radials, declared to be
at stake. In Toronto, on Dec. 29, Sir Adam Beck said : "Do you
want Radials or don't you? If you want radials vote for the
Toronto Suburban By-law ; that is all I ask you to do. The four
Railways we take over will pay. They cannot pay without term-
inals. We must have them." The voting took place just after
the close of the year, included the Toronto Suburban Railway,
the Radial Railway to Bowmanville, the Niagara-St. Catharines
and Toronto Railway, and resulted in majorities everywhere
for the Beck policy — except in one Niagara municipality.
,
The Chippawa-Queenston Power Canal. This great project
became a fact in 1921 and, like the Provincial Hydro-Electric
System, in general, owed its initiation and completion to the
energy of Sir Adam Beck, the work of his Power Commission
and the co-operation of the Niagara Municipalities under the
Ontario Niagara Development Act. It had cost much, much was
promised from its operation, much was expected by the people
of Ontario. During the year many difficulties developed — high
costs of labour and threatened strikes, delays in construction
and increasing costs, strained relations between the Beck Com-
mission and the Drury Government, the fact of enormous ad-
vances being necessary to carry on and complete the project. It
was pointed out, however, that there were continuous shortages
of horse-power in Ontario despite the 91,000 h.-p. already de-
veloped ; that tens of thousands of horse-power were being
borrowed in the United States ; that the farmers and industries,
alike, were demanding more power; that the wastefulness of
THE ONTARIO HYDRO-ELECTRIC POWER COMMISSION 621
tsing coal for power and the economic loss of sending millions
of money to the United States to obtain it were apparent.
The project had been initiated in 1913 to meet an expected
shortage of power in 1920; the legislation, however, was not
passed until 1917, and Sir Adam Beck contended that had the
Canal been commenced earlier and completed sooner many mil-
lions would have been saved; the work involved construction of
a Canal to convey water from the upper Niagara River to a
point near Queenston, where the largest power plant in the
world was being built ; the final construction permitted of using
the full available head of water, between Lake Erie and Lake On-
tario, which was more than twice the available head of the other
power plants at the Falls ; the length of the Canal was 12^
miles, the total excavation of earth was 11 million cubic yards
and in rock 4 millions ; the net head of water utilized would be
305 feet and the capacity of the Canal from 15,000 to 18,000 cubic
feet per second; the Power-house was to contain the largest
turbines and generators in the world — each of the former of
55,000 h.-p. capacity coupled to an electric generator of equiva-
lent size — with five on order and two being installed.
In May 7,000 men were at work rushing the Canal to com-
pletion before, it was hoped, the end of the year; its cost wa;
added to by such matters as 80 miles of standard, gauge railwf[t
built to assist in construction, while $5,000,000 or more was i^1*
vested in construction equipment alone, with concrete wot r°
requiring the use of 25,000 barrels of cement a day, and nearl "
6,000 barrels required daily during the two summer months |
Construction went steadily and swiftly on and, meanwhile, the1
public estimates of the cost of the project, when completed,
were steadily increasing. Mr. Premier Drury, in Toronto on
Nov. 11, pointed out that in 1915 the scheme was launched to
develop 100,000 horse-power and to cost $10,500,000; in 1918 to
develop the first five units and make provision for 275,000 h.-p.
the cost was to be over $25,000,000; in 1919 the scheme, fully
grown and to develop 500,000 h.-p., was to cost $40,000,000. Last
spring they were assured, finally, that to develop five units and
to make water preparations for developing the rest of the units
the total cost would be $55,000,000. Lately the Government had
found that another $10,000,000 would be required. Hence the
hesitation over the Radial policy and its final abandonment by
the Government. On Nov. 28 the Globe put the final cost at
$82,000,000, and even then believed it would pay: "Assuming
this ultimate capital cost for the complete installation of 650,000
h.-p., and with one 75,000 h.-p. unit in reserve, the capital cost
per h.-p. continually available would be slightly more than $140,
and the annual interest charge at 6 per cent. $8.40 per year."
Coal horse-power was estimated by this journal at $30.00 per
h.-p. and Chippawa power at $16.50. On Dec. 22, at Belmont,
Sir Adam Beck dealt with the subject and the Government's
natural objections and fear as to the cost:
622 THE CANADIAN ANNUAL REVIEW
Let me tell you that the revenue we will receive from the sale of
power from the first five units installed will be sufficient, with a lead
of 200,000 horse-power in December, 1922, to cover the capital charges
on the whole work, and the price we will have to charge for the power
will not increase the cost of power to the consumers of the city of Lon-
don, x x x I am not able to believe that it is true when I read in the
papers that the Government is considering attempting to take over this
project under a Minister of Power. There is such a thing as vested
rights, there is such a thing as law in this country, and there are things
that cannot be done. We have at Chippawa the greatest and most
economical power development in the world. It will cost $80,000,000,
but I can tell you now that not one dollar has been mis-spent or stolen.
The Prime Minister says the scheme was started too late or too early.
I beseeched the Government to let us go ahead in 1915. Too late — it
was two years too late — and it cost you $40,000,000 more than it would
have, had the Government let us get started in 1915, to finish in 1918.
On Dec. 29, 1,000 visitors and men of eminence in electrical
and engineering matters from all over the continent, attended
the opening of the immense Power-house, the turbine of 55,000
h.-p., and the first turn in the wheels of the great enterprise. Mr.
Drury, as Prime Minister, performed the ceremony and said: "I
turn on the power in the hope that it is the beginning of a great
Service by the people and for the people of Ontario." He con-
gratulated Sir Adam Beck and declared this an historic day for
the Province ; admitted differences with Sir Adam, but denied
athat the Government had considered a Ministry of Power; de-
precated autocracy or one-man power in any enterprise. An
^address and a silver loving-cup were presented to Sir Adam
'"Beck by the Ontario Municipal Electric Association representing
]all the municipalities distributing Hydro-electrical energy as a
jpublic undertaking; Sir Adam, in his reply, stated that "up to
1 to-day the taxpayers have not been called upon to contribute
one cent, despite a total outlay by the Hydro Power Commis-
sion, on all its projects, of $220,000,000."
f~ The Toronto Radials and the Power Commission. During
the whole of the year the "clean-up" of 1920 between the Mac-
kenzie electric interests and the City of Toronto was held up
by three-cornered differences between the City, the Power Com-
mission and the Provincial Government. Under the original
sale and agreements the Hydro-Electric Commission was to
pay for and acquire (a) the Electrical Development plant at
the Falls, and (b) the Toronto-Niagara long-distance transmis-
mission line, while Toronto was to pay for and acquire (1) the
Mimico and Scarborough radials except the Mimico and Scar-
borough sections within Toronto which the city already owned
and (2) the Toronto Electric Light System. Difficulties de-
veloped over the desire of the Power Commission to associate
these Toronto Radials with the future Hydro Radial system ;
another complication arose over the dispute between
the Power Commission and the Toronto Harbour Board as to
the terms upon which the future Hydro Radials could use
the water-front.
THE ONTARIO HYDRO-ELECTRIC POWER COMMISSION 623
The Toronto Radials were to be the property of the City, but
they were to be acquired by the Commission as Trustees and
operated by it in the same capacity. Draft Bills were approved
at a conference between the Power Commission and the City
Board of Control on Apr. 6 and were presented to the Legisla-
ture by the Government and duly passed.* Action, however, de-
pended upon agreements as to details, and these agreements
were under constant discussion during the year. On July 8 Mr.
Premier Drury stated that he had asked the Mayor of Toronto
for a definite statement as to the situation, and had been referred
by him to Sir Adam Beck ; that under the law it was the duty of
the Hydro Power Commission to report upon the proposed pur-
chase of the Power plants to the Government and to submit its
recommendation, but that none had been received.
Sir Adam Beck, on July 15, stated that the matter depend-
ed on the Government accepting certain guarantees totalling
$13,000,000 and upon the Toronto Railway Co. settling claims of
the York County authorities and in respect to the Victoria Park
Commission for water rentals. On Dec. 31 a final agreement
between the City and the Provincial Power Commission, as to
the terms under which the City would purchase such part of the
Toronto and Niagara Power distribution system as lay within
the City limits, and the Metropolitan division of the York Radial
Co. — within the City — was finally approved by the City Council.
On Dec. 12 another difficulty was removed when the Hydro
Power Commission withdrew its request to the Harbour Com-
missioners for a free Radial right-of-way ; questions of radial
entrances and the construction of a central subway and terminal
were left over for the new City Council.
Power incidents of the year included the annual Report of
the Ontario Power Co. of Niagara Falls, owned and operated
by the Hydro Power Commission and showing (Oct. 31, 1921)
Assets of $31,181,140, Stock, bonds, and debentures of $22,024,-
845 and an Operating surplus balance of $724,770 ; the statement
by Sir Adam Beck, at London on May 7, that the Commission
was operating 21 different developments, and that all had been
bought from private companies for the municipalities ; the fact
that New York State decided not to follow Ontario's example
and, during 1921, by the Gibbs-Adler bill established a system of
private ownership for Hydro-electric enterprises under State
supervision; the statement of Sir Adam Beck to the Toronto
Board of Trade, on June 24, that until the Chippawa Canal was
completed the Power Commission would lease unused power
developed in the United States plants, and then, after the Canal
had been put into operation, the Commission would rent to New
York State a certain proportion of the horse-power developed
at the new site — with lower costs of production as the reason
for this condition ; the efforts of Detroit City to obtain from the
Hydro Power Commission a 10-year agreement for the supply of
*Note.— See Sub-Section as to Power legislation— Page 615.
624 THE CANADIAN ANNUAL REVIEW
horse-power running from 25,000 to 60,000 in amount — and
failure because $36.00 per h.-p. was deemed too much ; the state-
ment of the Barnes-Locke Report, prepared by officials of the
Hydro Power Commission, that Electricity prices paid by con-
sumers of private power in 80 Canadian and American towns
ranged from 22 per cent, to 526 per cent, higher than those paid
by Hydro consumers in an equal number of Ontario towns.
The 2nd Session of the 15th Legislature of On-
Ontario tario and the second, also, of Mr. Drury's Adminis-
^e?!l!ft*?nt tration, was a more contentious one than that of
o"f the Wood! 1920; the two Opposition parties, though not uniting
Question m anv organized voting strength, combined in a
and the great deal of criticism and opposition to Govern-
Timber In- meiit measures. The opening took place on Jan.
vestigation. 25th with due ceremony and amid the usual boom-
ing of guns and fashionable gathering; the Lieut. -
Governor, L. H. Clarke, delivered an Address from the Throne
of considerable length. In it His Honour spoke of the tranquility
of the Province, the stability of its institutions and the bountiful
harvest of the past year; referred to industrial conditions and
reconstruction, and promised Government relief for the unem-
ployed; stated that the Agricultural industry had suffered ma-
terially from the rapid deflation in farm products, and urged "a
better understanding and a more general co-operation between
the rural and urban populations as leading to beneficial results
and tending towards reduction of the cost of distribution"; de-
clared that one of the most practical ways of improving the con-
ditions of rural life was by means of "a judiciously designed
Good Roads system," and that much progress had been made in
the Government plans for highway improvement; pointed out
that scarcely less important to the general welfare was the dis-
tribution of Electrical energy in the rural districts, on terms
more nearly approaching an equality with those on which the
urban population was served — in this connection a Legislative
Committee would report its findings.
His Honour proceeded to speak of the Minister of Agricul-
ture and his policy as to immigration and the Cattle Embargo;
the Government's increasing attention to the question of Educa-
tion, with a view to increasing the efficiency of rural and urban
primary schools, and of the Secondary schools of the Province ;
its appointment of a Committee along these lines and opening of
the Monteith High School in New Ontario with special courses
and a new policy ; the successful operation of the Minimum
Wage Board and the Government's desire for harmony and pro-
gress in industrial relations ; the success of the recent financial
Loan and the fact of buoyant revenues ; the progress of the
Queenston-Chippawa Power project and purchase by the Hydro
Power Commission of the Electrical Development Company
Plant ; the fact that the administration of the Ontario Temper-
•I
. rt
l£
w .2
H •£
o
£
.
ONTARIO LEGISLATION; THE TIMBER AND BACKUS AFFAIRS 625
ance Act had been impaired by the traffic in intoxicating liquors,
both to and from the Province, and the coming Referendum with
promised legislation to make enforcement more efficient. Re-
ports of various Committees were promised with legislation of
a varied nature.
The Address in reply was moved by W. J. Johnson, U. F. O.
member for Lanark, and Karl Homuth, Labour member for
South Waterloo ; many speeches followed, and the debate closed
on Feb. 11 without a division. On Jan. 27, Hartley Dewart,
K.C., the Liberal leader, attacked the Government with vigour.
He reiterated the Liberal demand that the Nickel companies be
compelled to pay back taxes which, he claimed, were still due
the Province ; he criticized the Civil Service Commissioner and
declared that the post should have been filled by a business man
of long experience and practical knowledge ; he dealt with the
Prime Minister's "broadening out" policy, reviewing its history
and development, and described it as a plan for recruiting from
the ranks of the older Parties. Mr. Dewart stated that in the
last Elections the Liberal party had shown the broadness of its
policy by refraining from nominating candidates in 39 constitu-
encies, and had thus enabled the United Farmers to return with
the largest following: "We tilled the ground, we sowed the
seed, but we have to admit that some of the harvest hands came
in and took a larger share of the crop than those who had sown
the grain."
G. Howard Ferguson, K.C., the Conservative leader, follow-
ed and, as to farmers' grievances, stated that 60 per cent, of an
increase of $350,000,000 in Bank Savings during four years was
due to the savings of farmers while "in five years there have
not been half a dozen chattel mortgages registered against farms
in my County and the Registrar for the County of Leeds tells me
he enters up 20 discharges for every mortgage registered." lie
then reviewed the various items of Government policy and Pro-
vincial progress, and claimed the late Conservative Government
to be responsible for all that was best in current development.
He sounded a note of caution in referring to Mr. Biggs' High-
way policy. The Province was now committed to expenditure
on some 55,000 miles of highway. Of Provincial highways alone
there would probably be 2,000 miles and an estimate^ of main-
tenance would show an annual charge of $1,500,000: "While we
are desirous of supporting a policy of road improvement, it
should be remembered there is a limit to the price we can pay.
When we come to examine the whole situation we find there
has been lavish expenditure with $6,500,000 already spent on
Provincial highways; will somebody tell me where we have a
reasonably good Highway outside of five miles west of Hamil-
ton?" Mr. Ferguson added that the late Government had draft-
ed the Mothers' Allowance Bill and that all the Drury Govern-
ment had to do was to put it into effect ; so with the initiation of
the Minimum Wage Board. He spoke of the lack of sympathy
in Government circles for the Hydro Power plans and vigorous-
21
626 THE CANADIAN ANNUAL REVIEW
ly condemned the proposal that Hydro Power be put under a
Minister : "The men who were going to do away entirely with
patronage are now proposing to do away with the one really
non-partisan organization, which for years has been operating
with business-like efficiency."
Mr. Drury's reply was argumentative and declaratory of
policy along various lines ; its terms have been dealt with under
specific headings of Government action; many of the important
debates of the Session have, also, been reviewed elsewhere.
The administration of the Mothers' Allowance Act was discuss-
ed on Mch. 1st; the London City Gas legislation and allegations
as to bribery made by H. B. Ashplant of that city and by
Andrew Hicks, were debated on Mch. 8; the first division of
the Session was on a Bill of K. K. Homuth which proposed to
limit Municipal property electors to one vote, which was defeat-
ed by 34 to 13 votes ; on Apr. 21 Andrew Hicks, U. F. O., ad-
mitted that he was misinformed when he referred, in June 1920,
to "appalling bribery" in the Legislature. There was much dis-
cussion of the Bill presented by Charles McCrea (Con.) which
proposed to place in the hands of the Ontario Railway and Muni-
cipal Board power to increase Street Railway rates where an
agreement could not be reached by the Company and the Muni-
cipal Council under specified conditions.
The Toronto Globe (Apr. 20) termed it "a vicious Bill," and
declared that the powers involved in it would enable the Rail-
way Board to nullify agreements duly entered into by muni-
cipalities and the holders of franchises. Deputations appeared
before the Railway Committee on Apr. 28 and Sir Adam Beck,
in particular, expressed strenuous opposition; representatives
were present from Toronto, Hamilton, Guelph, Peterborough
and other municipalities. The Electric Railways wanted the
Bill and Mr. McCrea offered to greatly modify it, but, finally, by
a vote of 20 to 16, the Committee killed the measure. Another
incident was the refusal of R. W. E. Burnaby, President of the
U. F. O., to disclose to the Committee on Privileges and Elec-
tions the name of the individual who had called on him in his
office some months before and offered him $1,000 a year if he
would assist in getting the applicant the post of Purchasing
Agent for the Ontario Government; on Apr. 29 the Committee
refused to sustain its Chairman's ruling or to compel Mr.
Burnaby to give the name ; there was a long debate in the House
on the matter, and the motion of H. H. Dewart that Mr. Burn-
aby be summoned before the Bar of the House was rejected by
32 to 26 votes.
The Timber Enquiry and the Legislature. Mr. Howard
Ferguson, the Conservative leader, was greatly concerned in
the Timber License Enquiry conducted by Hon. W. R. Riddell
and Hon. F. R. Latchford, of the Ontario High Court, during
1920 and 1921. He had been Minister of Lands and Forests in
the period under investigation, and it was inevitable that Mr.
I
ONTARIO LEGISLATION; THE TIMBER AND BACKUS AFFAIRS 627
Drury, as U. F. O. leader, and Mr. Dewart for the Liberals, should
make the most of the conditions indicated. Three Interim Re-
ports had been issued in 1920: (1) as to the operations of W. H.
Russell of Port Arthur and his Companies, which were said to
have included the taking of large quantities of pulpwood (79,350
cords) without license in 1913-19, and, also, serious trespasses
upon Government lands; (2) the finding that in 1911-19 the
Shevlin-Clarke Co., Ltd., of Fort Frances, had an output from
their mills of 649,946,017 feet of timber and had only returned
to the Government and purchased 294,181,714 feet, and that pro-
ceedings should be taken to recover the difference ; (3) the fact
that G. E. Farlinger of Sioux Lookout, Ont., had a mill output
of 5,168,434 feet, that he returned and paid for 2,185,802 feet,
that the allowance for over-run of small logs under the Doyle
Rule was 1,092,901 feet, that Mr. Farlinger had been innocent of
any knowledge of wrong-doing and had sent to the Government
a cheque for $13,030 which was the amount due. Proceedings
were recommended in the first two cases and were taken in 1921.
There were many incidents during the 1921 Enquiry. On
Jan. 18 Shirley Denison, K.C., Investigating Counsel, informed
the Commission that a grant of 5,500 square miles of pulp limits
to the Spanish River Pulp and Paper Co. had been arranged for
in September, 1919, just before the Provincial election; that
the Company were now trying to get confirmation of this grant
from the present Government, and that later evidence showed
that upon the security of this grant the Company had obtained
Bank advances for extension of mills, etc., totalling $3,500,000 ; a
letter from Hon. Mr. Ferguson (Sept. 25, 1919) given in evidence
which declared that he had "reached the conclusion that it is in
the public interest that you should be assured of an additional
supply of wood, and I have indicated to the Deputy Minister that
the area discussed at our recent interview, and outlined on the
map at that time, shall, in the meantime, be held in reserve until
we have a full opportunity of delimiting exactly the territory that
will be set aside for your purposes"; the evidence of Percy B.
Wilson, Vice-President of the Spanish River concern (Feb. 1st)
with an emphatic denial that the Company had ever given any
Party subscription in this connection; the issue on Feb. 14 of a
writ against the Commission asking for a declaration that the
Commissioners were acting in this case without lawful auth-
ority, that they were endeavouring to investigate matters re-
lating to the business and affairs of the Company without juris-
diction, that the summonses issued by the Commission and dated
Feb. 4, 1921, were beyond its powers and should be set aside.
Following this the Legislature passed, with the Royal As-
sent, on Apr. 8, an Act which amended the Public Enquiries Act
so as to prevent interference, by injunctions or Court actions,
with any Royal Commission of this nature and, on Apr. 25, pro-
ceedings were resumed, with testimony by Albert Grigg, Deputy
Minister of Lands and Forests, that arrears frequently accumu-
628 THE CANADIAN ANNUAL REVIEW
lated in the payments due by lessees or License holders with
interest charged by the Department — such arrears in the Spanish
River case running from $77,210 in 1913 to $95,720 in 1920.
Carl C. Hele, formerly Secretary to Mr. Ferguson, when Min-
ister, testified (May 11) that he still had in his possession mem-
oranda, files and letters of Mr. Ferguson's, but that they were
private and not properly the property of the Crown ; the Marshay
Lumber Co., the Union Lumber Co., an associated concern, the
Lambert Co. of Welland, the Abitibi Lumber Co., were all in-
vestigated for alleged shortages in timber reports ; James Mc-
Creary, a lumberman, testified on Oct. 12 that he had received
$1,000 from W. Cochrane of Sudbury to withdraw a tender in
favour of the Spanish River Co., which was the next lowest, and
in turn Cochrane had received from the Company $1,000 worth
of logs instead of cash.
There was nothing very startling in all this but there
were, running through the evidence and the Enquiry, things
which reflected upon the Department of Lands and Forests and
produced an impression that it had not been altogether well
managed, with poor book-keeping systems and inefficiency in
certain other directions ; with, also, an outside system of sealers
and reports under which there were fraudulent returns and abuse
of license powers. Evidence, on Feb. 12, showed that during the
years 1909-1910, there were cut 13,300,727 pieces of timber,
which totalled 573,746,453 feet, an average scale of 43 feet, and
that from that time on the sale gradually declined, until in 1919
it had fallen to 35 feet average. Mr. Howard Ferguson, K.C.,
was present as a Counsel through most of the Sessions, and he.
frequently interjected protests against points of investigation
or action. He charged, especially, that the Enquiry was partisan
in character, that the Crown Counsel was a prosecutor rather
than the agent of an impartial investigation ; that the period en-
quired into was that of his administration and not of his Liberal
predcesssors who had established the existing system, that the
official instruction to the Commissioners was practically a
blanket one covering any period they might select.
There were various discussions of the subject in the Legis-
lature. On Feb. 23 Dr. Forbes Godfrey (Cons.) told the House
that the Timber Enquiry was a deliberate attempt by politicians
behind the Government to discredit the man whose force and
ability made him more feared than any other; Mr. Raney pro-
tested against what he termed an attack on the Judiciary, and
the matter dropped with Dr. Godfrey claiming that they —
Messrs. Riddell and Latchford — were not Judges in this con-
nection but Commissioners, subject to the Legislature. On Mch.
2nd Mr. Raney eulogized the Commission, and declared it a
noble thing to go up into the North Country and extract from
unwilling employees the truth about dishonest timber dealings :
"It is well known that public sentiment in the North has been
demoralized and the Ten Commandments almost forgotten, in
I
ONTARIO LEGISLATION; THE TIMBER AND BACKUS AFFAIRS 629
this connection, with divulgence of information looked upon as
disloyalty." The Hon. Howard Ferguson reiterated his con-
tention as to partisanship : "I say it is a public scandal that the
Attorney-General should have asked a member of a former
Government, responsible for the shaping of the policy that has
been pursued for 50 years, to enquire into the conduct of a suc-
ceeding Administration, x x x The Timber probe has de-
veloped into a persecution."
Charles McCrea (Cons.) brought up the subject on Mch. 15,
and began with a protest against wholesale conclusions as to
dishonesty or wrongful action amongst lumbermen because of a
few cases; pointed out that the Doyle Rule, as the basis for
measuring lumber, and dating from Oct. 18, 1879, was greatly
misunderstood, while the amount of over-run allowed for small
timber varied widely with no definite decision. He went at
length into the evidence of R. T. Harding before the Public
Accounts Committee, and pointed out that Mr. Harding had
received a retainer from E. J. Callahan, Liberal candidate in
Rainy River in the last Election, to gather evidence against the
Shevlin-Clarke Company, that Callahan was introduced to Hard-
ing by H. H. Dewart, K.C., and that it was Callahan who first
suggested a Commission of Enquiry. Mr. Dewart followed and
spoke of his conviction that the Department of Lands and
Forests was not bringing in sufficient revenue. Two main lines
of investigation were, he said, quite clear — that mining leases
were being improperly located for the pulpwood upon them, and
that some of the larger Companies and lumbermen were de-
liberately neglecting to make proper and honest returns, and
were assisted in this by dishonest cullers and inspectors.
Hon. Mr. Raney defended the Commission and denounced
the Conservative Opposition; Mr. Ferguson, he said, had the
opportunity of aiding the Commission or taking sides with the
''Lumber pirates." J. A. Mathieu, General Manager of the Shev-
lin-Clarke Co., declared that his Company had not received fair
and honest treatment from the Commissioners ; that it had been
put to trouble and expense and treated with such an entire lack
of consideration that it, finally, refused to put in any defence.
Mr. Mathieu claimed that his Company had repeatedly asked
the Commissioners to conduct a test of over-run in their mills,
but this had not been done : "The Shevlin-Clarke Co. has noth-
ing to be ashamed of, nothing to hide. We are content to leave
our case to the Courts."
The Public Enquiries Bill raised another debate on Apr. 5
which grew heated and personal at times, with various words
withdrawn at the request of the Speaker; the removal of what
Mr. Ferguson and C. C. Hele, his Secretary, called "private cor-
respondence" from the Department files, when the change of
Government took place, was discussed at length with various
insinuations and charges. Nothing was proved, either way.
On Apr. 29 Mr. Mathieu again defended his Company; instead
630 THE CANADIAN ANNUAL REVIEW
of having made millions of money, as had been represented
in the papers, the Shevlin-Clarke Co. had, he stated, made only
9 per cent, on their investments since commencing operations :
"The Company does not owe the Province of Ontario one cent,
to my knowledge, but the moment it is proven in Court that
money is owing, it will be paid to the last cent."
Following the Session of the House, this question was widely
discussed by the politicians. Mr. Drury (Wasaga, June 21) de-
clared the Commission the very best that could have been
appointed and described Mr. Ferguson as "attempting to malign
what was practically a Court of Justice and to impute to it mot-
ives other than those which were just." At Beaverton on the
24th (and elsewhere) he spoke of "big timber thieves" with theft
of millions involved. On Sept. 26 it was announced that a settle-
ment had been made by the Government with W. H. Russell by
which $37,500 was to be paid into Court at once and $17,500 a
little later from the sale of certain wood ; on Oct. 2nd Mr. Raney
stated an arrangement had been made with the Shevlin-Clarke
firm as to certain payments alleged to be due under agreement
and license ; another suit, however, was being pressed asking for
a declaration to the effect that the Company had sold the alleged
355,000,000 feet B. M. of lumber on which they had paid no
Crown dues or bonuses. The Company, in reply to the state-
ment of claim, asserted (1) that the two Quebec forest reserve
berths involved were not sought by them, but had been accepted
at the solicitation of the Department of Lands and Forests with
a view to conducting slash-burning experiments on behalf of
the Government, and (2) that certain sums of money, their prop-
erty, had been retained by the Government. Action was com-
menced on Dec. 8 before Mr. Justice Logic.
The Lake of the Woods Question. This matter was im-
portant as involving the rights of the Dominion, or otherwise,
to control navigable rivers and water-powers which were not
international in character. Reference has been made elsewhere
to the Dominion side of the issue* and H. M. Mowat, K.C., in
Parliament, had maintained that all such water-powers — even
those of Niagara Falls — were under Dominion jurisdiction. Mr.
Drury declared, on July 21, that "with that doctrine we take
direct issue, and I can assure the public that we will find means
of combatting any such encroachment on the Legislative auth-
ority and the natural resources of this Province." The specific
issue was created by the Backus question and the Provincial
legislation in this matter, which commenced in 1920, and raised
much controversy. It was the old story of monied interests
seeing a chance to make some money, a Government seeing an
opening for important development of water-powers and timber,
and increase in revenue, critics seeing nothing but grants of
water-powers and timber with little immediate return to the
people.
*Note.— See Pages 363-4 of this volume.
ONTARIO LEGISLATION; THE TIMBER AND BACKUS AFFAIRS 631
This particular matter was further complicated, however,
by Dominion interests and Manitoba rights in the waters flow-
ing out of the Lake of the Woods — with which region the ar-
rangements dealt. E. W. Backus and his associates, who ob-
tained in 1920 from the Province of Ontario certain rights as to
water powers and timber in return for promised development by
means of mills and electricity, were not interested in the inter-
Provincial issues except as they affected their operations. But
the financial interests were large, and included power resources
and storage dams at the outlet of Namakan Lake and the outlet
of Rainy Lake, as well as at that of the Lake of the Woods,
with a definite promise from the Ontario Government of a con-
cession covering power development at White Dog Falls on the
Winnipeg River — 24 miles below Kenora. Mr. Backus held from
the Ontario Government and from the Minnesota Legislature
areas of pulpwood lands contiguous to the waters in question —
the Ontario limits under grant being stated as high as 4,400
square miles. There were, consequently, several sides to the
question — those of the various Governments concerned and that
of the public in relation to the immense interests represented by
Mr. Backus.
As the result of a Conference held in Ottawa on Jan. 21,
1921, at the suggestion of Mr. Meighen, representatives of the
three Governments, with their expert advisers present, agreed,
apparently, that the best way to provide for the maximum pos-
sible use of the great natural facilities of the Winnipeg River
drainage basin for power development, would be by means of
proper control over the facilities at the outlet of Lake of the
Woods and Lac Seul in the Province of Ontario, through a joint
Control Board, to consist of 4 engineers, two appointed by the
Dominion and 2 by Ontario. Concurrent legislation was said to
have been agreed upon. Accordingly a Bill was drafted, with
the assistance of the legal and engineering advisers of the Do-
minion and Ontario Governments, and was, finally, approved at
Ottawa. On Mch. 2nd a Bill was, accordingly, introduced in the
Legislature of Ontario by Mr. Premier Drury, and another was
under consideration by the Dominion Parliament.
Meanwhile, the popular discussion of the matter had grown
greatly. It was asserted by the Winnipeg Free Press (Apr. 6)
that the purpose of Mr. Backus and his allied American cor-
porations in exploiting the water-power and pulp-wood re-
sources of the Lake of the Woods' district, was to build up the
Newsprint industry of the Central Western States. During the
Newsprint shortage after the War it was claimed that Western
Canadian papers had suffered considerably from these interests,
and it was said that Mr. Backus at one time had, in this connec-
tion, defied the Dominion Government and the Western press.
Hence the importance of the concurrent legislation which, it
was thought in Winnipeg, would help to protect Canadian gen-
eral interests as well as the 500,000 h.-p. which was under pro-
cess of development on the Winnipeg River.
632 THE CANADIAN ANNUAL REVIEW
It was, however, claimed by Peter Heenan, M.L.A., of
Kenora, that the facts were the other way, and that Mr. Backus,
in the days of the Paper Controller, was supplying some eight or
ten per cent, of his output to Canadian papers in the West and
that, at the request of his fellow manufacturers and the Paper
Controller (R. A. Pringle), he took on a large additional number
of papers in the Western Provinces despite the fact that his
entire output was contracted for in the United States at a higher
rate than he could get in Canada. Later, the Canadian Western
papers were said to have refused him renewal contracts unless
he would continue to take lower prices than he could get in the
States. Both at Ottawa and Toronto Mr. Backus opposed this
legislation, and he and his Counsel appeared before the Ottawa
Government on Mch. 20 and before that of Ontario on the 21st
with the question of control over "the dependable flow" of waters
in the Winnipeg and English Rivers as the crux of the situation.
Mr. Drury stated in the Legislature, just before the conference,
that Ontario would insist on being given the deciding voice in
the regulation of the Lake of the Woods water levels, and that
he did not entirely approve of the legislation introduced, con-
currently, in the House of Commons and the Legislature.
On the same day, at Ottawa, Mr. Meighen read correspond-
ence in the House between Mr. Drury and himself, showing that
the latter desired delay and further conference between the Gov-
rnments and Mr. Backus, and did not want the legislation rushed
through at Ottawa ; a further complication was the claim of the
people of Kenora district (Ontario) in support of certain Mani-
toba protests and expressed in a public statement to the Ottawa
Government, on Apr. 25, that the Bill was designed to transfer
the rights of the Province of Ontario over her water-powers to
the Province of Manitoba and, if it became law, the water-
powers in the northern part of Ontario would be seriously cur-
tailed and industrial and commercial development severely handi-
capped. Much discussion followed, with bitter opposition ex-
pressed by the Toronto Telegram in particular ; on Apr. 27 the
whole subject was debated in the Legislature with the Premier
supporting the Bill but with uncompromising antagonism ex-
pressed by H. H. Dewart and Howard Ferguson for the Liberals
and Conservatives and by Peter Heenan of Kenora, a Labour
supporter of the Government.
Mr. Drury maintained that it was better to have co-opera-
tion between the Dominion and the Province than conflict; at
the same time he believed that there was danger that the Do-
minion, under the cloak of navigation regulations, might inter-
fere with Ontario power development. Both the other Leaders
objected to the legislation as a surrender of Ontario's powers
and Provincial rights to a Control Board, while H. H. Dewart,
the Liberal leader, wired Mackenzie King, at Ottawa, (May 25)
urging him to oppose and block in every possible way
the proposed Federal legislation. The Ontario Premier
ONTARIO LEGISLATION; THE TIMBER AND BACKUS AFFAIRS 633
withdrew his Bill. On May 28 he wired Mr. Premier
Meighen protesting against the passage of another Bill at
Ottawa taking over control of navigable rivers. He declared
that "any effort to take control of the waters and water-powers
of this Province, further than is necessary for the purposes of
navigation, will be strongly resisted by our people, and will be
considered an unwarranted invasion of the Provincial domain
by the Federal authorities." In reply, Mr. Meighen stated that
there was a clause suspending the Act whenever the Ontario
Legislature passed the Concurrent Bill which had recently been
withdrawn at Toronto. The Federal action was approved at
Winnipeg and this Bill, as well as the proposed concurrent
measure at Ottawa, went through. The Opposition point of
view as to the whole matter was succinctly stated by the Mail
and Empire on May 30: "Mr. Drury cannot make his friend, Mr.
Backus, lord of streams and waterways that are subject to Do-
minion jurisdiction in any particular, or in regard to which an-
other Province has any rights, or to which international agree-
ment applies."
Mr. Drury dealt largely with this issue in his speeches dur-
ing the summer and, at Port Arthur (July 12), he said that if
Ontario bowed to the control of the Lake of the Woods and the
English River by the Dominion Government, then there was no
reason why Ottawa could not build a dam across the outlook
of Lac Seul and thus deprive the Province of power rights on a
River that was completely within its boundaries. Not only
would Provincial rights be jeopardized in this one case, but its
investment of over $100,000,000 in various Hydro enterprises
might be endangered. At Kenora, on July 13, the Premier was
welcomed by the citizens, with E. W. Backus leading in the re-
ception. Addresses were given by both Mr. Drury and Mr.
Backus. The Premier explained the English River limit ques-
tion ; if the Dominion Government did not repeal its second Act
taking over the water-powers he would appeal to the Privy
Council. Mr. Backus was brief and humorous; delay had been
caused in his work by the Dominion Government, but some day
Mr. Drury would be invited to perform a ceremony at Kenora
he would be proud of. Howard Ferguson at Island Grove, near
Toronto, on July 20, denounced the whole policy with vigour :
The Government gave Backus an absolute monopoly of all the
power in the locality. It agreed to put up the English River limit for
sale and make it a condition that the manufacturing should be done
where Backus had all the water-power. It is true there were three other
alleged bids. But the Prime Minister knows that two of the bids came
from Backus's own partners, and the third from his Paper broker, x x x
Backus got this large tract of the public domain at his own figure. He
paid $50,000, and the ordinary Crown dues. Estimates in the Department
show that on 3,000 square miles of the English River territory, sold,
there are 18,000,000 cords of spruce and poplar pulp-wood, so that,
leaving out of consideration altogether the Lake of the Woods property,
Backus secured from the Government this vast empire of forest wealth
.for which he was to pay the people about one-third of a cent per cord
634 THE CANADIAN ANNUAL REVIEW
at a time when pulp-wood was selling as high as $6.00 per cord. The
Prime Minister tells us of the increase in Crown dues. He takes special
credit for raising the dues last year from 40 to 80 cents in spruce, and
20 to 40 cents in other woods. He knows perfectly well it is a practice
of the Department that all Royalties or dues from natural resources are
fixed for 10-year periods. Last year (1920) was the year of the increase
in ordinarv course.
These statements Mr. Ferguson repeated at various meet-
ings ; on July 30, at Ottawa, Mr. Drury met his critic with an
attack, which described the Conservative as throwing up "a
smoke screen of tortuous verbosity" ! He claimed that the Con-
servative leader was entirely wrong in his estimate of spruce
and pulp-wood ; later, an aeroplane survey of the Backus limit
on the English River (Toronto Star of Sept. 3rd) indicated that
over 40 per cent, of the limit was made up of burned-over areas
or water with 411 square miles out of 3,060 containing heavy
stands of spruce and balsam; 1,258 square miles were covered
with mixed timber. The Telegram, from its hostile standpoint,
estimated out of these figures that there were 20,000,000 cords
of pulp-wood on the Limit. Mr. Raney, as Attorney-General,
had, meanwhile, (July 26) issued a statement that the Norman
Dam, which controlled the English River and Lake of the
Woods' water level, was owned by Mr. Backus, and that under
the original terms of agreement with Ontario he had made over
to the Province the regulation, forever, of this Dam and thus
solved one of the chief difficulties in Lake of the Woods control.
On Aug. 14 the Dominion Government, under its new powers of
control and with the approval of the City of Winnipeg and Gov-
ernment of Manitoba, approved the Backus plans for certain
power works at the eastern outlet of the Lake of the Woods.
On Dec. 23 regulations providing for the control of the waters
of this Lake and their maintenance at certain levels were ap-
proved by Ottawa.
Ontario Legislation of the Year. Apart from the Backus,
Hydro-power, Educational and other special measures such as
the Agricultural Credit Acts which are dealt with in separate
parts of this Section, there was a good deal of legislation during
the Session. By the date of prorogation on Apr. 30, 262 Bills
had been introduced with 99 receiving, finally, the Royal Assent.
The Educational measures had, in a general way, aimed to in-
crease the financial support of High Schools ; to remedy the
conditions of the rural schools adjacent to large cities and
towns ; to confer power upon County Councils to form County
Boards for secondary education. By a measure of Mr. Raney's,
provision was made for the legitimation of illigitimate children
in the case of their parents afterwards marrying, while another
Bill provided for the maintenance of illigitimate children by the
father ; another Act compelled all persons authorized to perform
marriages to be registered; a Bill carried by Joseph Mac-
Namara made the maintenance of indigent parents by their child
or children compulsory. Hon. W. R. Rollo carried his measure
ONTARIO LEGISLATION; THE TIMBER AND BACKUS AFFAIRS 635
to establish Employment Service Councils, but many of his
amendments to the Workmen's Compensation Act had to be
dropped at the wind-up of the Session ; his Mechanics' and Wage-
Earners' Lien Act, an important revision and simplification of
the law, was referred to a Special Committee for future enact-
ment; Hon. H. C. Nixon's Bill amending the Marriage Act so
as to put the issuing of marriage licenses in the hands of muni-
cipal officers was passed ; Hon. Harry Mills' measure to deal with
the Natural Gas problem of Western Ontario by taking legis-
lative authority to fix rates when necessary, irrespective of
agreements, went through, but the proposal to levy new taxes
on the Mining industry was abandoned.
The Mothers' Allowance Act was broadened so that the
benefits were extended to deserted wives, to wives whose hus-
bands were permanently disabled, and to foster-mothers with
dependent children, and the Board was also authorized to give
allowances to children dependent on a mother or a foster-mother
who was not strictly eligible under the Act; another measure
provided that no child under 16 could work in a factory or shop
without a permit, and that no child under 14 could work outside
of school hours and that manufacturers must provide seats,
whenever possible, for women workers ; the Minimum Wage Act
was amended so that different awards could be made in different
localities for the same employment. Mr. Raney carried an im-
portant Bill empowering the Government to place the Police
Magistrates of the Province on a salary basis, and to require
any Magistrate to devote himself exclusively to the duties of his
office. An additional $5,000,000 appropriation was made for
Development work in Northern and North-western Ontario, and
$5,000,000 was, also, set apart for Highway improvements.
Provision was made that cities, towns and villages must
construct the portion of Provincial highways within their limits
with power to issue debentures in payment for the work.
Amendments to the Municipal Acts were numerous. The in-
come of a person derived from investments was exempted up to
$800 so long as the income from all sources did not exceed
$1,500; power was given to municipalities to grant aid for the
establishment of Air Harbours ; all municipalities were given
the right to establish restricted districts or zones in which only
detached private residences could be erected and to regulate the
height, bulk, location and character of buildings which could be
erected within any defined area ; farm lands could be separated
from towns and villages on application of the owners to the
Ontario Railway and Municipal Board; a person who was a
member of a Commission having the management and control
of a municipal Electric or Street Railway was disqualified from
membership in a Municipal Council except as Mayor.
The Dairy Standards Act of the late Government, which had
never been proclaimed, was amended and amplified by Hon.
M. W. Doherty and approved for operation on Jan. 1st. It pro-
636 THE CANADIAN ANNUAL REVIEW
vided that cream was to be paid for on its butterfat content and,
when purchased for butter-making, was to be graded as first or
second quality ; that milk bought on its butterfat content should
be tested by a Babcock tester and, when supplied to a cheese
factory, be paid for on the basis of its fat content plus two or
on its fat content alone. Mr. Bowman, Minister of Lands and
Forests, carried a Reforestation Act which gave the Minister
power to "acquire by lease, purchase or otherwise, lands for re-
forestation purposes"; authorized the Minister to enter into
agreements for the re-foresting of lands held by others and for
the re-foresting of Crown Lands sold or leased ; permitted ar-
rangement with private owners or municipalities for the creation
of private or municipal wood lots or small forest areas in On-
tario; authorized him, also, in disposing of Crown timber areas
to lumber or "pulp companies, to enter into agreements for the
re-foresting of lands in Nortern Ontario as these were cut over.
A preliminary appropriation of $165,000 was made for giving
effect to the measure.
Other measures included an Act alloting certain new duties
to the King's Printer (Major Clarkson James) including that
of Accountant to the Legislative Assembly, purchaser of sup-
plies for the Government Departments when directed by Order-
in-Council, and Inspector of Supplies bought under contract,
etc. ; authorizing the Government to borrow $20,000,000 for the
Public service and Public Debt; making regulations and im-
posing a License upon Billiard and pool-rooms and bowling
alleys ; amending the Highway Improvement Act, to place $7,-
000,000 to the credit of an Improvement Fund, and authorizing
payment of 40 per cent, of local expenditure upon a County road
or 60 per cent, upon a County Provincial road. The Loan and
Trusts Corporation Act was amended to make it clear that
Trust Companies could receive deposits under certain specific
conditions; the Registrar of Trust and Loan Corporations was
instructed to inspect all Head Offices of Loan Corporations once
in each year, with a sworn return to be submitted by such Cor-
porations, quarterly, as to the amount of deposits, cash on hand
and securities held.
Mr. Raney's Bill as to adoption of children enacted, prac-
tically, that the word child or its equivalent should in every case
include an adopted child unless the contrary plainly appeared
on the face of a document, and gave authority for a Judge to
give the surname of the parent to an adopted child. Hon. Mr.
Bowman carried a Bill under which the Northern Light Rail-
ways Co. was empowered to lay out and construct light rail-
ways, to be operated by steam, electricity, or other power, on
Manitoulin Island. An Act respecting Vocational Schools pro-
vided that, with the approval of the Minister of Education, a
High School Board, a Board of Education, or a Continuation
School Board of any municipality or school section could pro-
vide for duly admitted pupils in the following classes of Voca-
tional Schools :
ONTARIO LEGISLATION; THE TIMBER AND BACKUS AFFAIRS 637
1. Industrial Schools and De-
partments.
2. Home-making Schools and
Departments.
. 3. Art Schools and Depart-
ments.
4. Technical High Schools and
Departments.
5. Agricultural High Schools
and Departments.
6. Commercial High Schools
and Departments.
Many Acts were variously amended and some important
Bills were withdrawn — notably Mr. Rollo's Fair Rents' measure,
under which he would have allowed a landlord to increase his
rent only 10 per cent, over the amount received on Jan. 1st,
1919, and excluding consideration of structural improvements
that may have been made since that date. The members ap-
proved an increase of $600 in the Sessional indemnity of $1,400
and it was passed in the Supplementary estimates with no ex-
pressed objection — except by Dr. Stevenson, Labour member
for London. Much interest and entertainment was taken by
the House in certain figures of expense which came out in the
Public Accounts Committee as to costs in the furnishing of sleep-
ing-rooms for the Ministers in the Parliament Buildings. Aside
from the question of necessity for such apartments some of the
items of furniture were criticized by the Opposition as ex-
tremely extravagant.
Incidents of the Session included a Resolution (W. J. Bragg,
Liberal) urging the appointment of a Special Committee of the
House to enquire into and report upon the condition of the fruit
and apple interests and business throughout Ontario ; all matters
relating to the production, packing, storage, transportation, ship-
ping, marketting and export of Ontario fruit and apples; with
power to send for and examine all necessary persons and papers.
A Report was presented from the Committee appointed in 1920
to consider some permanent record of the appreciation of the
House as to Ontario forces fighting for the Empire in the World
War. It recommended (1) the collection of a vast mass of data
regarding all phases of Overseas Military activity by soldiers,
nurses, etc., from Ontario, (2) similar action as to Civil activities
within the Province and (3) erection of a Monument or Cenotaph
in Toronto or at the Royal Military College, Kingston, with the
establishment of a Memorial Hall which would constitute a
Museum of the War.
A Resolution moved by the Premier and Hon. Mr. Raney en-
dorsed an appeal from the Veteran organizations asking the
Dominion Government, in view of current unemployment and
unrest, to reinstate the D. S. C. R. relief measures; another
motion by Hon. Mr. Rollo called for a Conference between the
Dominion and Provincial Governments for the purpose of con-
sidering the advisability and practicability of legislation covering
Unemployment Insurance, Old Age Pensions, Eight-hour day, and
other matters affecting labour conditions which were dealt with
by the Peace Conference at Versailles. Still another motion
by R. A. Fowler and A. W. Gray (Conservatives) was approved
unanimously and declared that the Province of Ontario had under
638 THE CANADIAN ANNUAL REVIEW
its care the training and education of its youth with the object
of developing the highest type of citizenship and the maintenance
of British Connection ; that despite these facts certain American
magazines and newspapers known as "The Hearst Publications"
were permitted to circulate in Canada ; that as "these publica-
tions are anti-British in tone and attidude and subversive of the
ideals of Canadian citizenship and our connection with the British
Empire, this House believes that they should be excluded from
circulation in Canada." Therefore it was decided to memoralize
the Government of Canada with a view to preventing the entry
of these publications into Canada.
The Standing Committee on Privileges and Elections re-
ported to the Legislature during the Session that, in connection
with certain charges as to Bribery of Members made by H. B.
Ashplant of London, he had withdrawn them and expressed re-
gret ; that in the matter of similar statements made by Andrew
Hicks, M.L.A., he had declared himself misinformed and without
personal evidence or knowledge ; that in the charge made by
J. D. Taylor, M.L.A., as to a $1,000 bribe being offered him, it
would appear to have been a fact, but that the man who offered
it was now in Detroit and that Mr. Taylor had taken no action
except to make the offer public; that in the matter of a some-
what similar statement by R. W. E. Burnaby there seemed no
reason to doubt that the money had been offered for the use of
his influence, but that he would not reveal the name of the man
who made the offer. An interesting matter during the Session
was the growth of popular respect and regard for the Speaker,
Hon. Nelson Parliament. A Liberal and a farmer with only
seven years' experience in the House ; having three Parties to
deal with and at times a somewhat heated feeling; with, also,
natural and unavoidable inexperience amongst the Government
members, he had handled the situation with skill, dignity, fair-
ness and acceptance to all sides. Illness came to him in March,
and on the 23rd various tributes were paid him by the leaders,
while Hon. Thomas Crawford, formerly Speaker and a Con-
servative, was asked to act, temporarily, in the position.
There was only one bye-election during the year and this
was in North Oxford, where the vacancy occurred through the
death, in July, of J. A. Calder, a Liberal, who was elected in 1919
by 2,313 majority. The election was not called until December,
and then the Government put up a strong fight to carry this old-
time Liberal riding. W. W. Day was the Liberal candidate,
with D. M. Ross, of Embro, for the U. F. O. and Government
and H. B. Neely as an Ind. Conservative. A number of Min-
isters took part in the contest, including the Premier, Hon. M. W.
Doherty, Hon. Peter Smith, and Hon. F. C. Biggs, assisted by
Miss Agnes MacPhail, M.P. Roy Palmer, Secretary of the In-
dependent Labour Party, also supported Mr. Ross who, inci-
dentally, was a brother of J. C. Ross, Editor of the Farmers' Sun.
Wellington Hay, the new Liberal leader in the Legislature,
ONTARIO LEGISLATION; THE TIMBER AND BACKUS AFFAIRS 639
R. L. Brackin, J. C. Tolmie, W. E. N. Sinclair, R. R. Hall and
other members spoke for the Liberal. Mr. Day and Mr. Ross
were both farmers, Mr. Neely was a lawyer. Hydro Radials
were a distinct issue with Public ownership in general, and Mr.
Drury, who spoke at Tavistock and Woodstock on Dec. 14, at
Kintore on the 15th, at Hanington and Drumbo on the 16th,
dealt largely with the subject.
At Woodstock the Premier put the issue as follows: "I
believe that this election will be construed as the verdict of the
people of Oxford, a representative constituency of Ontario, on
the Government's Hydro-radial policy." As to this James
Stewart, President of the North Oxford Liberal Association,
told the Toronto Telegram (Dec. 15) that the Liberals were solid-
ly with Mr. Drury on his anti-Radial stand. Mr. Neely made
the Separate School taxes matter an issue, and stated at Wood-
stock, on the 16th, that "every Roman Catholic in the Riding"
was voting for the Drury candidate ; as a matter of fact, how-
ever, Mr. Neely had no support from his party leaders and no
party organization behind him. On Dec. 19 there was a tre-
mendous turn-over of votes and the Drury Government won a
marked victory with 4,692 votes for Mr. Ross, 3,384 for the
Liberal and 936 for Mr. Neely. The Liberal had a majority in
Woodstock, but the rural parts went with a sweep for the U.F.O.
candidate.
PROVINCIAL AFFAIRS IN QUEBEC
AND
THE MARITIME PROVINCES
To the Hon. L. A. Taschereau the political
The Ta*che- situation in Quebec during 1921 was an obvious
reau Gov- compliment; stability of conditions and lack of all
?o?imeoV? serious opposition to the Government, or of discon-
ISfZl; politics . , r .. . . . . . ,«
and Admin- tent with its policy, made admmmstration easy ; the
istration. financial situation, despite certain agricultural dif-
ficulties, was better than in any other part of
Canada. Cautious and wise in policy, dignified in public as in
social life, Liberal in name and tradition and party but con-
servative in thought and character, Mr. Taschereau represented
elements which had made him a natural successor to Sir Lomer
Gouin in the Premiership of Quebec. His speeches during this
year were not numerous, but they were sufficient to indicate his
Government's policy and to maintain its position before the
people. His first important Delegation was on Jan. 20, when
representative men from Outrement, Versailles and other su-
burbs of Montreal protested by petition against any annexation
by or absorption in the City of Montreal. They wanted auton-
omy and their summarized view was as follows :
The independent municipalities, with restricted territory, require
little time for administration; they recruit their Councils from qualified
ratepayers interested in careful and economic administration; there is
a spirit of co-operation and emulation which compels judicious and pro-
gressive administration ; their financial condition is excellent ; loans are
moderate, Sinking Funds are collected and invested, and budgets well-
balanced. It would be unjust to take away the result of their efforts
and economies. Under annexation there will be a distant, slow and ex-
pensive administration, and they would lose there present advantages.
Local citizens could no longer devote time to attending distant meetings,
the standard of representatives would be lowered. The City would not
benefit by annexation, its borrowing powers would increase but little,
the larger administration would be less efficient, and, as before, an-
nexation would result in additional charges for City ratepayers.
Mr. Taschereau expressed agreement, upon the whole, with
these views, but pointed out that a few municipalities were upon
the verge of bankruptcy and this could not be allowed ; they all
must join hands and help the weaker communities. At a Liberal
Dinner in Montreal, on Apr. 13th, the Premier defended his
Government and its legislation, and declared that the greatest
confidence and friendship existed between all the members of
his Cabinet. On the 17th the members of both Houses of the
Legislature presented him with a handsome piece of sculpture,
entitled "Redemption," which pictured a young mother with a
babe in her arms. Speaking at a banquet of the Canadian
Manufacturers Association at Montreal, on May 12, Mr. Tasche-
[640]
THE TASCHEREAU GOVERNMENT IN QUEBEC 641
reau dealt with matters of trade and industry and stated that
his Government was concerned in promoting both farming and
manufacturing interests which, he said with emphasis, were
inter-dependent ; farmers needing manufacturers to provide
centres for consumption of agricultural products which only the
farmers could supply. He strongly disapproved of a Farmers'
party, or of any party representing but one class of the com-
munity.
Referring to the U. S. Fordney Bill, then under discussion,
he said it would practically close the American market to Cana-
dian farmers, and it would, therefore, be specially necessary
for farmers and manufacturers to work in close co-operation
for years to come : "We are told this is a Farmers' Province,
but I say it must be at the same time a Manufacturers' Province.
You manufacturers must maintain centres to be supplied by the
farmers who will suffer the more if they do not have those
centres." Mr. Taschereau then dealt with the St. Maurice Dam,
the largest in the world, a third of a mile long and 90 feet high ;
enclosing an area so immense that it took nature three years
to fill it with water; which could supply more Hydro-electric
power than could be used up for many years and might make
the Province independent of American coal.
He hoped the surplus power from it would be used for the
electrification of Canadian railways between Quebec and Mont-
real. Reference was made to the peaceful attitude of Labour
in the Province and its desire to give a real day's work for the
pay it received as due, largely, to the system of Education in
force, which included discipline, love of order and respect for
law. Much of this was accounted for by the religious aspect of
the educational system. Sound municipal government was de-
scribed as essential to the good credit of both the Province and
its industries, and this had been helped by the ancient laws of
Quebec dating back, like Scotch laws, to the Romans. Quebec
law declared that a man must pay his debts and honour his con-
tracts ; in this Province no Moratorium had ever been declared,
nor was anyone allowed to repudiate contracts. A rather strik-
ing remark was the following: "If the Government considers
popular wishes are not for the best interests of the country, it
must have the backbone and nerve to uphold its own views."
Mr. Taschereau was in Toronto on June 8 to receive from
the University of Toronto the degree of Hon. LL.D. With the
Prime Minister of Ontario receiving the same honour, the bon
entente of the Provinces was further illustrated in the speeches.
After stating that 80 per cent, of the population of his Province
were French, and that they were proud of it, as he was of his
Canadian-French ancestry, he added: "But, I beg you to re-
member, that real Canadianism, love of the country, loyalty to
our institutions, British fair play to all, are as true and vigorous
in my own Province as in any others of the Dominion." He
eulogized the Roman law which, in the olden days, made the
642 THE CANADIAN ANNUAL REVIEW
greatness of Rome and afterwards became the foundation of
the civilization and progress of France and now stood to the
people as representing French ideals, French traditions, French
characteristics, French customs. These laws, however, would
not blend with English laws, and there was no use trying to
throw them into a melting-pot. He then dealt at length with the
objections to, and benefits from, the Appeal to the Imperial Privy
Council and summarized his views as follows :
I believe it is the general desire of my Province that, especially in
constitutional cases, the right of appeal should be maintained. The Cana-
dian Confederation is a compromise. Half a century of marvelous
progress and development show the wisdom and foresight of the men
who framed it. But, when so many conflicts of a racial, religious or
ethical nature are liable to arise, have we not all a greater sense of
security from the fact that the decisions to be rendered will come from
the men who preside over the Privy Council, men remote from our local
strifes and disputes, unprejudiced by their surrounding? To express
my thought in a few words, I will venture to say that in a country such
as ours, which is blessed with minorities, the Privy Council is the pro-
tection of those minorities. Solicitude for minorities is British fair-
play and constitutional principle.
Speaking at Victoriaville (June 19) Mr. Taschereau
made a political speech in answer to Arthur Sauve, Leader
of the Conservative Opposition. He claimed that Quebec
finances were in better shape than those of Ontario,
that its Provincial loans were placed at a higher price,
that Quebec, in 1920, declared a surplus of nearly $1,-
000,000, and on June 30 would declare one of more
than $1,000,000. From the resources of the Province in five
years the sum of $30,000,000 had been set aside for good roads ;
$5,000,000 for colonization, and $3,000,000 for universities ;
bridge and turnpike dues had been repealed; 600 iron bridges
had been constructed, and the greatest Dams or Reservoirs in
the world built. Aid to Education had been tripled and aid to
Agriculture quadrupled. From the surpluses of the Province
$13,000,000 had been paid off the Provincial Debt, which in 1919
stood at $18 per capita, against a per capita Debt of $42 in On-
tario, $61 in British Columbia, $69.99 in Alberta, and $83 in
Manitoba. Discussing the question of a Labour or a United
Farmers' party in Quebec, the Premier pointed out that more
than one-half the present members of the Legislative Assembly
were farmers or workmen. In 1905, when Sir Lomer Gouin
came into office, there were only two Domestic Science schools
in the Province and to-day there were 53; $50,000 had been
expended in the creation of a School of Agriculture, while ex-
perimental farms had been set up throughout the Province.
When the Duke of Devonshire left for England, the Quebec
Government tendered His Excellency a farewell Banquet at
Quebec, on July 18, and the Prime Minister's speech was explicit
as to several important matters. After a reference to the
burdens of War and Re-construction, in which the Duke had
shared, he went on to give a picture of Quebec conditions :
THE TASCHEREAU GOVERNMENT IN QUEBEC 643
The Province of Quebec desires it to be known that she yields to
none of her sister-Provinces in loyalty towards her Sovereign, in rever-
ence for our political system, in the strongest will to maintain intact the
Canadian Confederation. She wants to be a land of liberty, where those
of all races and creeds may live side by side in peace, harmony and good
will. She has her own traditions, customs, laws — things often no more
than trifles yet dear to her — -and all these she is ever jealous to preserve.
Her inhabitants are peaceful and happy. They are labourious and they
cling to the soil. They do not readily embark on schemes of would-be
reformers, sometimes called progress but which democracies are be-
ginning to mistrust.
Quebec has wonderful waterfalls and vast forests capable of supply-
ing the markets of the world with pulp and paper. She invites capitalists
to knock at her door, they will find inexhaustible natural resources and
every opportunity for working them. Again, Quebec with its great uni-
versities, its classical colleges, its institutions for higher education, its
technical schools, its academies, its convents and primary schools, is not
the ignorant and backward province its detractors too often assert. On
the contrary, its educational system fashions a generation which can
compete successfully in every walk of life with those of the sister-
Provinces and will assuredly add their part to the national greatness.
Mr. Taschereau was never tired of describing the position
and progress of his Province and, at a Commercial Travellers'
banquet in Montreal (Dec. 22), he especially eulogized the large
families in Quebec and the Educational system upon which the
Province had recently spent thirty millions and increased the
number of schools by 500 with a growth in pupils of 100,000 in
a five-year period. In those years agricultural production had
grown in value by almost 200 millions and money invested in in-
dustry by 40 millions. As to the .great and growing pulp and
paper industry, there were 80,000,000 acres of wood yet uncut,
and the Government would always see to it that if, and when,
it was cut the pulp from it would be manufactured in the Prov-
ince. Tolerant Quebec, said the Premier, was proud of its Liquor
laws: "We of Quebec are advocates of Temperance, but we
are not hypocrites. I predict that the future will show that our
laws in respect to liquor will be adopted by other Provinces in
the Dominion." Conditions this year assured a Liquor revenue
of $4,000,000, which would be used for Education, Good Roads,
the lowering of Taxes and the general welfare of the Province.
The Hon. W. G. Mitchell, as Treasurer of the Province
during the greater part of 1921, had an easy and agreeable task.
For the year ending June 30, 1920, the Ordinary Revenue was
$14,472,650 and Expenditure $13,520,740, with a Surplus of
$951,910; the estimated Revenue for June 30, 1921, was $11,-
673,904, Expenditure $11,590,563 and estimated Surplus $83,340;
the actual Revenue as shown by his successor* was $15,914,521,
the Expenditure $14,624,088 and the Surplus $1,290,433. In his
address to the House, on Jan. 27th, Mr. Mitchell dealt with
the 1920 figures— except as to Estimates. After reviewing Re-
construction conditions and difficulties, the Treasurer spoke of
the foreign competition in business which was beginning to de-
*Note.— Budget Speech of Hon. Jacob Nicol, January, 1922.
644 THE CANADIAN ANNUAL REVIEW
velop: "The situation we are faced with is a serious one, and
the only way in which we can compete successfully in this trade-
war is by co-operation between Capital and Labour. Increased
efficiency of our workmen ; greater production by our farmers ;
wider development of our natural resources ; the exercise of the
greatest economy. I have always maintained that co-operation
is essential for the future welfare of our country. It was never
more so than at present. Co-operation was needed to defeat the
German foe. Co-operation is needed just as badly in the com-
mercial war which is now developing." He declared himself an
optimist, however, urged the young men and women to go on
the farms or, if there now, to stay on them and stated that his
Budget figures for 1920, given above, were the greatest in the
history of the Province. The Public Debt of the Province on
June 30, 1920, was $48756,763, with Assets of $12,972,756; the
Funded Debt was $40,708,113, with Sinking Funds invested of
$2,176,362. The Treasurer dealt with Provincial progress in
various directions, based largely upon development of Provincial
water-powers and the consequent supply of electrical energy
from end to end of Quebec :
A great Reservoir was constructed at La Loutre on the St. Maurice
River for the purpose of storing the waters of the watersheds of the
north. A lake of some 300 square miles has been formed, with a storage
capacity of 160 billion cubic feet, or twice the capacity of the Assouan
Dam of Egypt. As a result of this undertaking 1,000,000 permanent
Horse-power could be developed on this River and the Falls had, al-
ready, doubled their capacity. A Dam was also constructed on the St.
Francis River, which has practically doubled the horse-power already
developed on that River. The Government has also had under consid-
eration for some time the development of the Ste. Anne de Beaupre
River, the Chaudiere River, the Harricana River, the Bell River and the
Jacques Cartier, Kenogami and St. John Lakes. The cost of these
works is paid for by charges made to the users of the power therefrom,
a substantial surplus being obtained over and above the cost of main-
tenance and sinking funds each year, which goes into the Treasury of
the Province.
The result was that : "We have seen Three Rivers grow
from a country hamlet to a thriving city. We have seen spring
up, as if by magic, such thriving towns as La Tuque, Grand
Mere, Shawinigan Falls, and others throughout the Province
too many to enumerate." In addition to this primary cause of
prosperity was the fact that Capital was safe : "Capital is look-
ed upon as a vested right. This has become known, not only
here, but throughout the rest of the Dominion, in the United
States and even in Europe, which means that Capital has come
and will continue to come here for investment. More, the
Manufacturer and Capitalist know that labour conditions are
better here than, probably, in any other place in America — there
being less Radicalism, less Socialism, no Bolshevism, more con-
tentment, more satisfaction, and, as a result, better relationship
between employer and employee."
Some of Mr. Mitchell's statistical comparisons were in-
teresting. The revenue from Lands and Forests had grown, be-
tweei
THE TASCHEREAU GOVERNMENT IN QUEBEC 645
tween 1916 and 1920, from $1,807,259 to $3,033,587; that from
Licenses was $1,047,768 in 1916 and $1,554,079 in 1920; Taxes
on Commercial Corporations grew from $1,034,564 to $1,581,759
and Duties on Successions from $1,375,803 to $1,781,930; the
Motor Vehicle taxes were $247,081 in 1916 and $1,180,725 in
1920; the total Revenue had grown by $4,824,668 and the Do-
minion Subsidies were stationary at $2,028,162. Expenditures
(Ordinary) during the same period grew by $4,084,052 and the
items included Public Debt upon which the charges were $1,-
708,379 in 1916 and $2,029,721 in 1920; administration of Justice
which stood at $1,157,907 and $1,365,900 respectively; Public
Instruction growing from $1,545,079 to $1,673,561, and Agricul-
ture from $470,861 to $887,400; Roads, upon which $349,000 was
spent in 1916 and $1,336,366 in 1920; Civil Government and
Legislation which grew from $1,143,987 to $1,372,083 and Colon-
ization from $209,000 to $709,000 ; Public Works and Buildings
stood at $740,789 and $758,205 respectively, while Lunatic Asy-
lums jumped from a cost of $633,625 to $1,017,946 and Lands and
Forests from $370,500 to $566,000.
The Special expenditure (Capital) under the Good Roads
Act was $3,635,124 in 1916; $4,243,896 in 1917, 1918 and 1919
and $3,413,108 in 1920. During the fiscal year 1920-21 there were
three issues of Bonds— $144,000, $5,000,000 and $5,000,000 and
the Public Debt grew proportionately. The latter of these ^/2%
issues included $1,000,000 to the University of Montreal and
$1,000,000 to Laval at Quebec. Late in 1921 Mr. Mitchell re-
signed the Treasurership of the Province after seven year's ad-
ministration, and was elected to Parliament in the General Elec-
tions ; his successor at Quebec was Jacob Nicol, K.C., a well-
known Barrister of Sherbrooke, who was sworn in on Nov. 23
as Minister of Municipal Affairs as well as Treasurer. His first
act of policy was to issue $4,000,000 of Sl/2% 15-year Bonds at ,
$97.62.
The Report of Hon. Antonin Galipeault, Minister of Public
Works and Labour, for the year of June 30, 1921, included reports
from various officials and branches as to the construction and
maintenance of Government buildings and railways, inspection
of industrial establishments and public buildings, the carrying
out of the Trades Disputes Act, the building of iron bridges, the
working of the Provincial Employment Bureaux, Hotel inspec-
tion, etc. The Minister mentioned, especially, the historical
painting on the ceiling of the Legislative Chamber by Mr. Huot,
the artist, as an object of general admiration and a work of great
talent. The completion was announced, under Government sub-
sidy, of the Quebec Central Railway branch from Scott's Junc-
tion to Diamond Junction on the Canadian National Railways —
19 miles long and of great expected value to the people. Other
contracts were given the Interprovincial and James Bay Co.
branch of the C. P. R. for the building of the Kipawa Line at
the Quinze River via Ville-Marie for the service of settlers in
646 THE CANADIAN ANNUAL REVIEW
that distant region; the Government, also, was urging forward
the construction of a Line north of Lake St. John. The total of
all Railway subsidies granted by the Province to date was $11,-
381,230, with $2,287,802 lapsed and $582,602 not yet due and
total Land subsidies of 13,324,950 acres ; the mileage in the Prov-
ince constructed under these subsidies was 2,468.
The Deputy Minister of Labour (M. Louis Guyon) sub-
mitted a Report reviewing matters under his supervision. In
Montreal, he stated, there was some unemployment as the re-
sult of sea-port conditions, but, on the whole: "It was the
leaders of the unemployed last year who gave so much trouble
to the authorities and they were dangerous professionals, whose
love for labour consisted merely of preferring to see the others
work." For the Fiscal year the various Provincial Employment
Bureaux of Canada had cost $233,890, but of this sum Quebec
only required $14,679. The re-organization of the Labour De-
partment, with permanent Headquarters in Montreal, was an-
nounced, and its duties were to include inspection of Industrial
establishments and Public buildings with control of the Employ-
ment Bureaux for men, girls and women; of the Board for the
examination of Engineers and the Bureau in connection with
Electricians ; of the Councils of Conciliation and Arbitration and
the Boiler inspection and carrying out of the Fair Wages Act.
In respect to registration of children working in factories —
between 14 and 16 years of age — the total to June 30th exceed-
ed 13,000; M. Guyon stated, however, that "whatever may be
done, the fact will always remain that a good number of chil-
dren, 14 years and younger, will escape all control, because our
Inspectors have not always jurisdiction in the places where
they are employed." The work of the Provincial Bureaux was
reported as dealing with 33,391 unemployed. Of these 12,237
were placed ; the vacancies notified by employers were 14,433
and the persons referred to employers were 14,784. Mr. Gali-
peault, in October, attended the Labour Congress at Geneva as
the representative of Quebec.
The Roads policy of Quebec continued its notable progress
under Hon. J. A. Tessier, whose Department since 1915 (he be-
came Minister in 1914) had spent $14,774,837* upon Road im-
provement and construction. In his official Report for 1920
(June 30) Mr. Tessier declared that notwithstanding the finan-
cial stringency, the high cost of labour, the scarcity of cars for
hauling materials and the increased freight rates, results had
been most satisfactory. The French-Canadian farmers had
realized the importance and numerous advantages of good roads,
they were not discouraged by handicaps and were determined
to have better roads at any cost. During the year 452 miles of
permanent roads were reported as built, compared with 451
miles in 1919; since 1912 the Province had constructed 3,460
*Note.— Mr. Mitchell's 1921 Budget and inclusive of expenditure under Good Roads
Act.
THE TASCHEREAU GOVERNMENT IN QUEBEC 647
miles of highway in all forms of road-building from concrete to
gravel. For Road improvement and construction from July 1st,
1912, to Dec. 15, 1920, the Minister stated the total Government
expenditure at $29,497,010.
Under the Dominion Highways' Act of 1919 with its $20,-
000,000 appropriation for Roads, Quebec had come into a Do-
minion system of roads, which was to be adjusted and arranged
so that the whole should be co-related and form, as far as pos-
sible, a National system of interprovincial roads ; in this plan the
Quebec mileage was 1,432, and included completed first-class
highways from Montreal to Rouse's Point, Montreal to Three
Rivers and Quebec, and from Levis to Jackman, Maine. Com-
prised in the new part of the scheme were roads from Montreal
to Hull and Aylmer, and from Montreal through the Lauren-
tians to Mont Laurier; from St. Lambert to Levis and, thence,
to Rimouski with a branch down to Edmonton or from Riviere
du Loup connecting at the former with the New Brunswick
system ; a road from Montreal to Derby Line, Vermont, through
Sherbrooke; one from Beauce Junction to St. Hyacinthe, an-
other from Beauceville to Sherbrooke and on to Sorel; roads
from Caughnawaga to Malone, Levis to Richmond and Laprairie
to Lacolle. Already many of the Quebec roads were proving
very attractive to American tourists — especially the Adiron-
dacks-New York-Montreal-Quebec (King Edward) Highway.
On Sept. 27 Mr. Tessier retired from this position in the
Government to become Chairman of the Running Streams Com-
mission; the Hon. Joseph Leonide Perron, K.C., M.L.A., Minister
without Portfolio, was appointed Minister of Highways; at the
same time Aurele Lacombe, M.L.A. for Montreal-Dorien, and
Emile Moreau, M.L.A. for Lake St. John, were sworn in as Min-
isters without Portfolio ; Paul Tourigny was appointed Member
of the Legislative Council, Dr. A. Bedard became Inspector of
Public Assistance, and Alphonse Metayer, K.C., was appointed
Deputy Minister of Public Works in succession to S. Sylvestre,
who had held the post for 20 years. At a Good Roads Conven-
tion, in Sorel on Nov. 25, attended by 300 representatives of the
districts lying South of the St. Lawrence, the new Minister
heard an earnest appeal for part construction and part improve-
ments so as to constitute a new Highway along the south bank
of the St. Lawrence which would have its terminals in St. Lam-
bert, at the southern end of Victoria Bridge, and Levis, opposite
Quebec; of its 180 miles, about one-half consisted, at this
time, of improved road surface, with many stretches of primitive
road, and including two Counties in which no improvements
whatever had been made. Favourable consideration was prom-
ised by Mr. Perron, who, about this time, estimated that, during
the summer, United States tourists had spent $35,000,000 in the
Province.
The 1921 Report issued by the new Minister, Hon. J. L.
Perron, was for the calendar year and dealt with an active
648 THE CANADIAN ANNUAL REVIEW
record of operation: "The exceptionally fine season permitted
of construction being done more rapidly and, as a consequence,
more economically. Cheaper, more abundant, and a better qual-
ity of labour equally contributed to reduce the cost price of con-
struction. The diminution in the price of materials also helped
a great deal." The total length completed in the year on Muni-
cipal Roads was 319 miles, of which 252 miles was in gravel and
49 in macadam; the total still under construction was 97 miles,
of which nearly all was in gravel; as to Regional Highways,
work was done on 12 roads and 97 miles completed with the
Hull-Aylmer and Caughnawaga-Malone roads finished, the
Beauce-Sherbrooke Highway carried to East Angus and con-
tracts signed for 20 miles on the Montreal-Sherbrooke High-
way; in Provincial Highways the completion of a concrete wall
at Batiscan was the only notable effort.
The Hon. Honore Mercier was Minister of Lands and
Forests, and this Department had done much during recent years
to forward settlement — especially in the Abitibi, Mistassini and
other large Northern areas ; Colonization was under control of
another Minister, but -the progress of great pulp and paper in-
dustries and forest development had, of course, greatly assisted
the movement. The 1920 Report of Mr. Mercier showed that
while the revenue from Lands and Forests during 1896-97 was
$853,427, in 1919-20 it was $2,604,450; in 1896-97 the whole
revenue of the Crown domain amounted to $879,893, and in
1919-20 it was $3,033,537; in 1881 there were 5 pulp mills in the
Province and in 1918 there were 37 of these mills with 26 pulp
and paper mills, capitalized at $241,244,704.
The Report of the Minister for June 30, 1921, stated that
during the fiscal year 421,261 acres of land had been subdivided
into lots and made available for settlement, with a total of 8,-
204,329 acres, and that, out of this, 178,626 acres had been grant-
ed in the year for agricultural and industrial purposes. Mr.
Mercier stated the Department's receipts at $3,567,188, of which
$3,035,360 came from rents, bonuses, stumpage dues, etc., in
Woods and Forests and $320,261 from the Gouin and other
Reservoirs. This Minister submitted the Report of the Quebec
Streams Commission, of which for a year he had been Chairman,
to the Lieut. -Governor in 1921 — the other members at this time
were W. I. Bishop, C.E., and Arthur Amos, c.E. The 1920 state-
ment indicated statifactory conditions in the great reservoirs or
storage dams of the St. Francois and other waterways, as stated
elsewhere in Mr. Mitchell's Budget speech.
During 1921 the Commission continued its examination of
the Rivers of the Province to obtain information as to the best
situated water-powers and to advise the Government as to the
possibility and advantages of erecting further storage reservoirs
for regulating the flow of the rivers. The field of operations
was extended from certain rivers in Abitibi to the North Shore
THE TASCHEREAU GOVERNMENT IN QUEBEC 649
and included the St. Maurice, St. Francois, Ste.-Anne (de
Beaupre), Ste. Anne (de la Perade), Chaudiere, 1'Assomption
and Jacques Cartier, as well as Lakes des Commissaires, Keno-
gami and St. John.
Under Mr. Mercier's jurisdiction was the Quebec Geo-
graphical Commission, of which J. N. Miller, French Secretary
of the Department of Public Instruction, was Chairman and
Eugene Rouillard, Secretary. The other members of the Com-
mission— which was appointed in 1920 — were Arthur Amos,
Avila Bedard, J. Adolphe Bellisle, Theo. Denis, Sergius Dufault,
L. P. Geoffrion, J. Emile Girard, G. E. Marquis, Emile D. Nor-
mandeau, G. W. Parmalee, G. C. Piche, L. A. Richard, Gustave
Rinfret and C. J. Simard. The 1921 Report dealt fully with
many of the place names of the Province — creating, rectifying
and establishing names throughout Quebec subject to final ap-
proval of the Minister. Mr. Mercier had to face, during 1921, a
critical condition in the Timber industry, and for some time not
only did prices go down, but demands for timber were practically
nil. Pulp and paper, which less than a year before commanded
exceedingly high prices, suffered the same fate, with factories
either obliged to close down, completely, or to considerably re-
duce their production. Owing to the gloomy prospects the ma-
jority of license-holders had about decided to suspend lumber-
ing operations when the Minister and the Government inter-
vened after consultation with those concerned. They decided to
reduce the tariff and stumpage dues and thus ensured continu-
ance of cutting and of work for some thousands of people. In
the matter of Crown Lands there were 387,716 acres of Public
and Clergy lands sold in 1920, 157,682 acres divided into farm
lands, 207,977 acres reverted to the Crown and the area of lands,
subdivided and still disposable, totalled 6,499,000 acres.
Meantime, settlers were flocking into the North Country, and
Hon. J. E. Perrault, K.C., Minister of Colonization, Mines and
Fisheries, continued to carry out a policy which Abbe Ivanhoe
Caron, official in charge ofthe Quebec Colonization Office, defined
as "settlement in communities of not less than 20 families so as
to enable each settlement to have its own school and in time its
local church and priest"; the value of the co-operation of the
Church in giving these settlers confidence and in helping the
movement being described as very great. Progress in the Quebec
part of the Clay-belt region running, also, into Ontario, was
marked, and many French settlers drifted across the border into
that Province. La Tuque was one of the centres helped by this
policy, and by its natural position in respect to the great lumber-
ing interests of the St. Maurice region. In the new areas of the
Province the Government promoted colonization by grants for
making or maintaining roads and building bridges, while Coloni-
zation Societies and agencies under control of Mr. Perrault's
Department directed settlers to the best farming regions; in
1921 the favourite districts were the Abitibi, Temiscamingue,
650 THE CANADIAN ANNUAL REVIEW
Matapedia and along parts of the Transcontinental and Quebec
Central Railways — the Gatineau, Labelle, Lake St. John, Baie
des Chaleurs and Gaspesia regions were also colonized to some
extent; in the Abitibi, during 1920, there were 1,733 families or
11,832 persons settled. It may be stated here that Mr. Perrault
was elected Batonnier-General of the Provincial Bar during this
year, while L. A. Richard, K.C., formerly Secretary to Sir Lomer
Gouin, was appointed Deputy-Minister of this Department in
succession to S. Dufault, who was superannuated after 35 years'
service.
The annual Report of Hon. Mr. Perrault for the year of
June 30, 1921, showed the activity of Colonization operations
and an expenditure of $449,960 by the Department and $34,170
by interested parties upon 109 miles of new roads, upon 125
miles of unfinished roads, and the repair of 430 miles of high-
way with the building or repairing of bridges and culverts ;
under the $5,000,000 vote for Colonization purposes $986,137
had been expended, with $43,162 from interested persons, on
301 miles of new roads, the completion of 364 other miles, re-
pair of 81 miles and construction of bridges and culverts. As to
the regions concerned, Abitibi was described as the favourite
with 4,038 new settlers during this year ; the Montreal Coloniza-
tion Office reported the placing of a number of French and Bel-
gian immigrants on farms in the neighbourhood of that City;
the French-Canadians repatriated from the States and located
again in the Province were 869 and the total number of immi-
grants arriving at the Port of Quebec, with this Province as their
destination, was 10,012.
In connection with Fish and Game, the Minister reported a
collection of $308,968 from the rental of lakes, rivers, and hunt-
ing territories, with royalties on 350,000 skins under fur-trading
licenses ; the return from Mining concessions, licenses, certifi-
cates, etc., was $642,285. Theo. C. Denis, Superintendent of
Mines, reported to the Minister a poor year in Mining for the
Province ; the total production for the calendar year 1921 was
$15,522,988, as compared with $28.392,939 in 1920, or a decrease
of 43 3 per cent. The chief products were Asbestos totalling
$5,199,789, compared with $14,749,048 in 1920, Cement, $5,410,-
276, compared with $6,545,053; Brick totalled $1,198,471, or a
reduction of $750,000 in value, and Limestone $1,523,027, which
stood at about the same figure ; Chromite, Magnesite, Mica,
Silver, Zinc, all showed considerable reduction on a small pro-
duction; Mineral paints stood at $90,765, Granite at $369,122,
Lime at $624,574, and Building sand at $263,813.
The Provincial Secretary, Hon. L. Athanase David, had a
Department which was associated with the official statistics of
the Province. Under him was the Bureau of Statistics with
G. E. Marquis as Chief Editor of the Statistical Y ear-Book of
Quebec — a valuable compendium whose 1921 issue was the 8th in
succession. This volume had a new Labour Section prepared by
THE TASCHEREAU GOVERNMENT IN QUEBEC 651
Felix Marois, which laid stress upon the value and work of the
National and Catholic Unions of the Province, which held a
Congress at Hull on Sept. 23-27, 1921. M. Marois reviewed
the recently-passed Municipal Strike and Lock-Out Act, which
provided for compulsory arbitration of disputes in municipal
services involving- 10 or more employees; it applied to police-
men, firemen and waterworks employees, or to those in charge
of garbage incineration; it, also, dealt with disputes re-
specting wages, labour conditions or dismissals caused by af-
filiation with a Labour organization. The Act made it illegal
for any employer to declare a lockout or for any employee to
go on strike before the dispute had been submitted to a Com-
mission of Arbitration; it provided a fine of not less than $100
and not more than $1,000 for every employer during every day
the lockout lasted; and one of not less than $10 and not more
than $50 for an employee during every day the strike lasted; a
fine of not more than $1,000 and not less than $50 could be im-
posed upon any person guilty of encouraging or aiding any strike
or lockout.
He mentioned the recent legislation under which Group
insurance was authorized on the lives of Public officers and em-
ployees ; he stated that there were in the Province 435 Inter-
national Unions with 48,408 members reported to the Depart-
ment, 114 National and Catholic Unions with 6,350 members re-
ported, and 16 other Unions with 2,064 members reported; he
added that there were many more not reporting. Amongst the
publications of this Department were Judicial Statistics for 1921
showing in minute detail the number of cases tried, nature of
crimes, judgments, etc. ; Statistics of Benevolent Institutions dealt
with six Asylums and 5,491 Insane patients in 1920, of whom
2,856 were men and 2,635 women, with 56 Hospitals having
51,389 patients admitted during the year and 4,159 present on
Dec. 31 ; 5 Sanataria with 145 patients and 113 Homes, Orphan-
ages, etc., with 12,100 beds for the poor, 17,584 persons relieved
during the year and 11,812 indigent persons resident at the end
of 1920, while 109,940 indigent persons were stated to have been
helped outside of these institutions ; the total cost of maintain-
ing Asylums, Hospitals, etc., in 1920, was $7,879,006, and the Re-
ceipts $6,384,192. Most of these institutions, though under the
supervision of the Department, were directed by Religious com-
munities.
Statistics of Penal Establishments showed 533 prisoners on
Dec. 31, 1920, with 9,608 admitted during the year, 8,484 warrants
and expenses of $421,766; there were 4 Reformatory Schools
and 5 Inductrial Schools. There was an official List of Municipal
Corporations and a 377-page volume of Municipal Statistics show-
ing 926 Parish Municipalities with 249 villages, 87 Town and 20
City municipalities ; they had an area of 24,270,548 acres and a
population (1920) of 2,503,548 persons with 35,939 miles of public
roads; the building operations of 1920 showed $39,661,697 spent
652 THE CANADIAN ANNUAL REVIEW
upon houses and workshops ; the Assets of these Municipalities
(Dec. 31,1920) were $204,029,044 and Liabilities $220,207,434;
the. Public services of Utilities — water, water-works, sewers, gas
and lighting, telephones, etc., totalled $65,541,798.
The Department of Agriculture is dealt with separately.
Meanwhile, Arthur Sauve had been acting as Leader of the Con-
servative Opposition in the Legislature with a very small follow-
ing and a decidedly up-hill task. Politics were not taken very
seriously in that body at this period and it was not unnatural
that some Conservative discontent should be expressed as to the
degree of progress made. Mr. Sauve joined with the Premier
in a tribute to the Duke of Devonshire on Jan. 13 : "I regret
that there are some people who do not know the people of
Quebec, who will not try to understand them and who try to take
from them the liberties which are their historic right; but the
people of the Province will continue on their road, cherishing
their traditions and appreciating, in the best manner possible,
the grand institutions of the Empire." At a Quebec luncheon
tendered by his supporters, on June 21, Mr. Sauve delivered a
political speech from the Conservative point of view :
Mr. Taschereau says that he gives to Agriculture, to Public in-
struction and to Colonization, much more than the Conservatives gave
25 years ago ; but he forgets that times have changed and that move-
ments which the Conservatives started to develop, such as the Dairying
industry, now necessitate a larger expenditure. He particularly forgets
that 25 years ago the Conservatives collected about $4,000,000 in taxes,
and that to-day the Government collects $14,000,000, or ten millions
more, from taxes which the Liberal party then denounced as unjust and
vexatious; taxes collected, also, from ten other new sources of taxation
which the Liberals imposed in different forms. Why did he not say that
the Liabilities had increased by more than 11 million dollars since 1896?
x x x I blame the Government for having, through improvidence, in-
competence, and guilty bluff, plunged the Municipalities into enormous
expenses for badly-built roads, very difficult and costly to maintain, and
for having spent $30,000,000 for 3,000 miles of highway— of which the
greater part have to-day largely deteriorated.
At St. Lawrent, at Berthierville, in Montreal, and at other
points, the Opposition leader urged his arguments against the
Government — assisted, usually, by Hon. E. L. Patenaude, a one-
time Dominion Minister. Seven bye-elections took place at the
close of the year, with Hon. Jacob Nicol, the new Provincial
Treasurer, elected by acclamation in Richmond (Dec. 15) to-
gether with J. Hugues Fortier, in Beauce, L. P. Mercier in Three
Rivers, and J. P. C. Lemieux in Wolfe. On Dec. 22 J. M. Richard
was elected by 474 majority in Vercheres, Joseph Gauthier by
819 majority in St. Mary's Division, Montreal, and Eugene
Godbout in Temiscouta by 2,402 majority. All were Liberals
and supporters of Mr. Taschereau. The Montreal Star, on the
day before the latter elections, protested against the failure to
run straight Conservative candidates and described the Con-
servative party in the Province as needing more aggressive
leadership.
THE TASCHEREAU GOVERNMENT IN QUEBEC 653
Incidents of the year included the appointment of 23 King's
Counsel by the Government ; the selection of A. W. G. Macalister,
K.C., of Quebec, as a member of the Public Service Commission
in succession to Sir J. Georges Garneau ; the election of Gordon
W. MacDougall, K.C., as Batonnier of the Montreal Bar, and the
appointment (Dec. 14) of Hon. Paul Tourigny as member of
the Legislative Council for Kennebec ; the Convention of the
St. Jean Baptiste National Federation held in Montreal on Apr.
17-21 with delegrates present from all parts of Canada and the
United States. At this gathering, the opening addresses were
given by Mgr. Georges Gauthier, Hon. L. A. Taschereau and
Hon. L.^A. David; Victor Morin, President of the Society, spoke
on the "Importance of National Groups," and Miss G. Le Moyne
on the work of the National Federation. At a mass-meeting of
the St. Jean Baptiste Society in Montreal (June 24) 2,000 mem-
bers passed a Resolution urging that this date be made a statu-
tory holiday as the National Day of the French-Canadian, and
another one, amidst acclamation, declared that "the Saint Jean-
Baptiste Society, meeting together at the Lafontaine Park,
renew their attachment to the faith, the language and the tra-
ditions of their ancestors, and their sincere loyalty to the British
Crown." In the afternoon 15,000 children, from 36 schools in
the north and east of the City, took part in a celebration at the
Park and were addressed by Mr. Morin and others.
On July 12 a French warship was welcomed at Montreal
and shared in the local celebration on the 14th of the Fall of the
Bastile, when the French Consul-General, Marcel de Verneuil,
reviewed a guard of honour while Commander de Penteves, on
behalf of the French Republic, conferred the Legion of Honour
upon Lieut.-Col. J. P. Decarie, Lieut. -Col. Chaballe and Major
Olivar Asselin. On Apr. 5 Godefroi Langlois, Agent-General of
Quebec in Belgium, visited Montreal and urged the Chambre
de Commerce to promote trade with that country; he said that
it was not generally known in Brussels' financial circles that
Canada had money or Banks ; on Apr. 16 he was tendered a
banquet, with Sir Lomer Gouin presiding, and again urged
better trade relations with the Belgians plus a Government
credit. An interesting incident was the conclusion (June 20) of
the legal conflict between Lord Atholstan of The Star and L. J.
Tarte, Eugene Tarte and La Patrie. by the publication of a state-
ment signed by the defendants (L. J. and E. Tarte) declaring
the aspersions cast by La Patrie upon Lord Atholstan to have
been unjustifiable and not supported by evidence.
Camille Paquet of Montreal was elected President of the
Board of Notaries of the Province on July 13; in November the
newly-organized Merchants' Associations of Montreal met and
elected W. A. Doig President, with Adelard Fortier and H. J.
Elliott, K.C., as Vice-Presidents ; a judgment of the Imperial
Privy Council at this time, in the Sharpies Estate case, gave a
decision which declared to be constitutional an Act of the Legis-
654 THE CANADIAN ANNUAL REVIEW
lature of Quebec levying Succession Duties upon movable prop-
erty situated outside of the Province ; the Montreal exemptions
from taxation in 1920 were $227,436,969 out of a total Assess-
ment of $663,523,174; during 1921 more people were brought to
trial before the Criminal Courts in Montreal than in 1920, but
with fewer major crimes during the year — a great number being
sentenced for Automobile thefts, of which there were 8,910 cases
in the year. On Dec. 31, Mr. Premier Taschereau issued a state-
ment which read, in part, as follows :
Quebec, in 1921, continued to set the example in post-war economics
and social re-organization. Labour was given first place by all classes,
optimism of a high standard was the rule of life in each individual, a
frank and cordial co-operation among all races and all religions remain-
ed. In the face of a harvest considerably diminished, our agricultural
population retained its proverbial good humour, its faith in Providence
and in the future; threatened with persistent unemployment, our work-
men allied themselves with the contractors to stimulate building and at
the same time to relieve the shortage of dwellings ; strikes, with their de-
pressing and disastrous influence, were the last arm to which our labour
unions would have recourse to overcome the high cost of living and the
industrial crisis.
The 2nd Session of the 15th Legislature of
Quebec Leg. Quebec was opened on Jan. llth by Sir Charles
hi- FitzPatrick» Lieut.-Governor, with a Speech from
and*" tne Throne which expressed regret at the retire-
the Temper- ment of Sir Lomer Gouin — "one, who, for over 15
ance Act. years, presided over the destinies of our Province
with dignity, wisdom and devotedness" ; referred
to the bountiful harvest of 1920 and the Government's intention
to establish a number of Demonstration farms; stated that set-
tlers were continuing to increase the land under cultivation while
new areas were being cleared and new roads built to facilitate
Colonization — with legislation to completely separate the Coloni-
zation and Forest domains promised; declared the Labour laws
of the Province to have had the best results and the workmen to
be inspired with a spirit of equity and respect for order; stated
that legislation would be asked granting to McGill and Laval
the same contribution of $1,000,000 each as already given to
Montreal University.
Temperance legislation was promised with a view "to re-
strict the sale of spirituous liquors by empowering the Govern-
ment to exercise absolute and immediate control over it." The
statement of reasons was explicit: "The measures enacted for
regulating the sale of alcoholic liquors have not had the results
expected. Constant infringements of the law threaten to sub-
vert order and respect for authority. My Government proposes
to do away with the present system and substitute for it a
new one which, while respecting individual liberty, will remedy
the abuses which our people so bitterly deplore." The Address
was moved by Edouard Hamel and W. R. McDonald and passed,
on Jan. 13, without division. The Speaker of the House was
QUEBEC LEGISLATION; GOVERNMENT SALE OF LIQUOR 655
Hon. J. N. Francoeur and he presented to the members on this
date the Duke and Duchess of Devonshire — the Governor-Gen-
eral making a brief speech. In the Legislative Council the Ad-
dress was moved by Hon. S. Letourneau, K.C., and Hon. G. R.
Smith and was, also, passed without division; the Speaker of
the Upper House, at this time, was Hon. Adelard Turgeon,
C.M.G., c.v.o.
During the Address debate (Jan. 13) in the House, Arthur
Sauve, the Conservative leader, denounced the Government for
the failure of the Prohibition law and alleged scandals and for an
immense traffic which, he declared, existed out of Montreal to
the United States. In following, Mr. Premier Taschereau
eulogized the work of the Montreal Civic Commission and
hoped for a settled and beneficial system of City government;
accepted the contention as to abuses under the existing Liquor
law despite every effort at enforcement ; admitted the existence
of a profiteering class and intimated legislation along the lines
of Government control; declared himself in favour of Protec-
tion for Canadian industries against "the largest factories in
the world standing just at our threshold and which are in a
most advantageous position for the sale of goods — the too
free entry of which into our markets would be ruinous to in-
dustry and to agriculture."
Legislation, of the Session included a Bill approving of
amalgamation of the Montreal General Hospital and the Western
Hospital; the Hon. A. Galipeault's measure providing for com-
pulsory Arbitration between cities and municipalities, employing
ten men or over, in the Police, Fire, Waterworks or Incineration
departments, and their employees, with fines from $10 to $100
a day for employees and $100 to $1,000 a day for municipalities
taking action before the Arbitration Board should report. Acts
were passed respecting the administration of oaths by justices
of the peace, as to the jurisdiction of magistrates in civil, crim-
inal and penal matters ; respecting the Clerk of the Crown and
the Court of Sessions ; as to records and archives of magistrates'
courts; respecting duties of coroners and the acquisition of
immoveable property by corporations and persons in mortmain ;
authorizing the construction of the Batiscan Bridge and the
abolition of toll bridges and turnpike roads ; respecting Agricul-
tural Societies and Agricultural Merit Awards ; authorizing the
establishment of Demonstration Farms and amending the Que-
bec Game laws ; abolishing the Montreal License Commission.
A measure presented by Hon. H. Mercier, Minister of Lands
and Forests, provided that Crown Lands should be classified as
fit for agricultural purposes or as good only for timber limits.
The Government was given power to transfer the former lands to
the Department of Colonization and exclude them from any grant
of timber licenses. A Bill presented by Hon. J. E. Perrault
gave the Minister of Colonization power to issue location tickets
and letters-patent for such land, and altered existing regulations
656 THE CANADIAN ANNUAL REVIEW
so that a settler would have to clear 30 acres before getting his
letters-patent, at the rate of not more than 5 acres a year, with
six years instead of five to run. An important new clause in
the law was that establishing a Timber Reserve on every lot, and
equal to 15 per cent, of the total area, for a period of 20 years.
This timber could only be used for the benefit of the settler, and
he would have no right to take any lumber out of that Reserve
for sale.
It was claimed that this scheme would divide all Crown
Lands into two sections, and prevent settlers from establishing
themselves in isolated lots, in the midst of timber reserves, as
they had done in the past — the result being the destruction of
millions of feet of valuable lumber from forest fires caused by
careless settlers in clearing their land. It would permit of
colonization in selected areas, and enable the Department to
construct the necessary roads to the lots, or even construct the
roads before the selected districts were opened up for settle-
ment. Under the $5,000,000 Loan voted for Colonization in
1920, $986,137 had already been spent on roads and wooden
bridges, and this, with the $450,000 subsidy granted, made a
total of $1,380,038 spent on Colonization during the past year.
The Hon. J. E. Caron, Minister of Agriculture, had some
important legislation which included (1) a Bill authorizing the
establishment of Demonstration Farms, selected by the Min-
ister, under contract of management with individual farmers
and remuneration or payments as decided upon — operation,
methods, etc., to be under control of the Department with L. P.
Roy of the Field Husbandry Service placed in charge ; (2) a
measure to organize Intermediate Agricultural Schools and pro-
viding that the Minister could establish and maintain in the
Province a Dairy School — already tentatively started at St.
Hyacinthe — with $50,000 appropriated for these objects; (3) a
Bill to provide for the payment of milk and cream on the butter
fat basis as ascertained by the Babcock test; (4) amendments
simplifying and completing existent Agricultural legislation so
as to prohibit the importation of bees or of agricultural supplies
without a certificate attesting that the bees were exempt from
disease and the supplies not infected — giving, also, additional
protection to pure-bred animals and provision for the inspection
of butter and cheese factories.
Other measures included Mr. Galipeault's Bill ratifying the
agreement with the C. P. R. and its subsidiary, the Interpro-
vincial and James Bay Co., for the construction of a line of
railway from Kipawa to Riviere des Quinze ; Mr. Mitchell's Bill
respecting registration of Bonds, or debentures, issued on Pro-
vincial credit ; the Provincial Treasurer's legislation granting
Pensions, under specific conditions, to officers and employees
of the Outside Public Service or their widows and children and
including Prothonotories and their office employees, Clerks of
the Circuit Courts, Clerks of the Crown, Clerks of the Peace,
QUEBEC LEGISLATION; GOVERNMENT SALE OF LIQUOR 657
Sheriffs, Registrars and their office employees with, also, Pro-
vincial detectives and members of the Provincial Police; a Bill
respecting Protection of Public buildings against Fire and enact-
ing License fees for installation of Heating and electrical systems
in such buildings; a measure granting $19,000 to the Catholic
Classical Colleges, $71,000 to the Catholic Model and Academical
Schools and $16,852 to various Protestant institutions; a Bill
fixing the salary of the Chairman of the Public Service Com-
mission at $8,000 with a Pension of two-thirds of this amount —
after 10 years service if not re-appointed; a Bill authorizing the
Government to take up Group insurance on the lives of its pub-
lic officers and employees.
An Act was passed amending and increasing the registration
fees on all kinds of motor vehicles. The License Act was amend-
ed to impose a duty upon transfers of license; to charge hotels
with a $5.00 fee per bed-room in cities and $3.00 in towns or
villages, and lodging-houses one-half of these rates ; to charge
restaurants in Montreal 5 per cent, of the annual value or rent
of the premises with varying rates for other places ; to charge a
license fee, ranging from $200 to $500 for circuses, etc., with
$15 to $30 for side-shows; to charge on all places of amusement
one cent per seat per day when the admission was $1.00 or less
and 3 cents when it was over $1.00;to impose license fees on
Race-tracks where betting took place, ranging from $300 to
$1,000 for each track per day — with double these rates if the
Pari-Mutuel system were used, and an entrance fee of 10 to 30
cents and a tax on percentage of each bet ; to charge license fees
of varying amounts on Auctioneers and on property and other
sales by auction, on peddlars, billiard tables, and bowling-alleys,
on brokerage agents doing business outside the Province of
$2,000 or more, on Loan offices, on powder sales, on pawn-
brokers, on the business of ferrymen, on private Employment
Bureaux.
The Minister of Roads (Mr. Tessier) carried a measure
authorizing the Department to acquire land by expropriation
or agreement under certain conditions, and for highway pur-
poses, with appeal to the Quebec Public Service Commission.
An important measure was that incorporating the "Metropolitan
Commission of the Island of Montreal," which provided that
thereafter none of the 16 municipalities grouped under the Com-
mission— including the City of Montreal itself — could be in de-
fault of interest on its debentures ; the Commission would be
responsible. The members of the Commission were 15, of whom
8 represented Montreal, one the Municipal Department of the
Provincial Government, 1 each for Westmount, Outremont, Ver-
dun and Lachine, and 2 for the remaining 11 towns. The
problem before the Government at Quebec was one of
allowing several of those municipalities to fall in 'de-
fault and thus injure others as well as themselves in the bond
markets of Canada, the States and England, or penalize, to some
extent, the stronger municipalities by pooling the various groups
22
658
THE CANADIAN ANNUAL REVIEW
and constituting a central body whose financial credit would be
superior to that of any taken alone. The municipalities concern-
ed, with the assessed valuation and debenture issues, were as
follows :
Municipality
Montreal
Taxable
Property
$851 289,316
Debt
$121,445,527
Municipality
Lachine .
Taxable
Property
17,385,520
Outremont
Westmount ,
23,157,904
, 54,388,080
3,061,279
3,553,360
St. Laurent $
Montreal, North...
4,869,234
4,962,915
Verdun
18,445,180
3,555,410
St Michel de
Mount Royal
Hampstead
Montreal, West
Ville-St.-Pierre
10,040,000
2,785,000
3,770,808
6,597,886
1,377,649
310,845
618,967
560,762
Laval
Montreal, East
Pointe aux
Trembles
6,047,523
15,472,510
7,714,067
Ville LaSalle
2,415,042
264,340
Laval de Montreal
2,306,210
Debt
2,525,352
847,425
1,423,954
1,1
1,966,045
2,422,907
266,533
Hon. Mr. Mitchell carried a Bill which provided for the con-
solidation of all Loans held by any municipality, so that if there
were any loans on which the sinking fund was insufficient, the
municipality would be able to impose the necessary special tax
to meet the sinking fund requirements. The Montreal legisla-
tion of the Session was important and the battle between the
Elective and Commission systems of government was fought
with vigour. The important measure was that amending the
Charter of the City of Montreal. It involved two different sys-
tems of Municipal government — "A" and "B" — to select from,
with a Referendum of the citizens to decide. The City had, for
three years, been governed by a Civic Commission under E. R.
Decary, and very much against the wishes of the popular poli-
tician, Hon. Mederic Martin, M.L.A., Mayor of Montreal for a
number of years, and who did not like being checked by any
such body.
Sir Hormisdas Laporte and 16 prominent citizens had work-
ed for a year upon the proposed Charter "A," which involved a
City Council of 15 members elected by three large divisions under
Proportional Representation; provisions for the recall of dis-
honest aldermen, without resorting to Courts ; the Mayor to be
elected by Council and a single administrative body to be created
which would entrust its powers to a responsible General Man-
ager. There was to be a compulsory Census for municipal and
school purposes; a Purchasing and Sales Department; a City
Planning Commission for the City and a Technical Commission.
There were to be no more loans unless approved by the prop-
erty-owners and no more annexations without the consent of
the property-owners. The other plan, "B," presented and press-
ed by Mr. Martin and his supporters, included a City Council of
35 aldermen representing 35 small wards and elected by the
majority system with the Mayor elected "at large"; continuation
of the double mandate which allowed an Alderman or Mayor
to be a member of the Legislature or of Parliament; no vote
for bachelors even if they paid taxes. The two plans were in-
corporated in an elaborate Act of 300 pages amending and re-
vising the Charter of Montreal.
A vigorous contest followed upon the Referendum, which
took place on May 16th, with a vote of 44,654 in favour of "B"
QUEBEC LEGISLATION; GOVERNMENT SALE OF LIQUOR 659
plan, 26,054 for "A" plan and a victory of 18,600 majority for
Mayor Martin and the City Council method. Another measure,
a Government one, was the organization of the Quebec Bureau
of Public Charities with powers which included (1) the right
to advise the Government as to what institutions should appear
on the list of recognized Public Charities and (2) the duty of
enquiring into these Charities, the merits and objects of their
work and the disposal of the proposed grants. The Act de-
clared that all such grants must be devoted entirely to the main-
tenance or hospital treatment of the indigent, and that the Gov-
ernment's grant must not be more than one-third of the total
received for charitable purposes by any one institution.
Other legislation included a Bill establishing the Judicial
District of Abitib.i in the North country with Amos as its chief
place ; an Act to amend the Game Laws for the better protection
of game ; a measure dealing with Municipal strikes and lock-outs
which were forbidden without previous arbitration; an Act
authorizing the Montreal School Commission to borrow $700,000
for purposes of school betterments and a Pension fund for lay
teachers and those of Quebec and Sherbrooke to borrow $100,000
each for School purposes ; a measure increasing the revenues of
the Protestant Board of School Commissioners of Montreal by
instructing the City Corporation to revise the bases of its taxa-
tion and allotments for the purpose; an Act respecting Con-
stables which reviewed and revised their duties and powers ; an
Act amending in elaborate terms the Statute as to protection of
public buildings against Fire and, also, that respecting inspection
of Scaffoldings.
Bills were passed authorizing the establishment of muni-
cipal Sinking Funds and the payment of Recorders' salaries by
the Government, regulating the action of Railways in Crown
lands and amending the Insurance Act to permit amalgamation
of Mutual Benefit Associations. The Charter of the City of
Quebec was amended to permit of borrowing $836,106 for speci-
fied purposes and that of Three Rivers to make temporary
Loans ; the charters of Verdun, Outremont, Lachine, St. Lam-
bert, Salaberry, Grand 'Mere and Montreal East were amended
for various purposes ; Shawinigan Falls was made a City and
the La Tuque Charter completely re-organized; an elaborate
Act authorized certain sales and transfers, loans and payments,
with contributions by the Fabrique of the Parish in respect to
the re-building of the Cathedral of Chicoutimi — twice burned in
the space of two years.
Incidents of the Session included the appointment of Hon.
Messrs. Taschereau, Mitchell and David, with P. Bercovitch,
K.C., Dr. B. A. Conroy, J. H. Lemay, A. Monet, L. A. A. Cannon,
K.C., P. J. Dufresne, Arthur Sauve, and Brig.-Gen. C. A. Smart
to enquire as to "a mode of officially informing the public of
the work of the Legislature"; the statement by Hon. Mr. Tes-
sier (Feb. 22) that from July 1, 1912, to date, the Minister of
660 THE CANADIAN ANNUAL REVIEW
Roads had expended for the construction, improvement and
maintenance of roads a total of $30,493,968; the answer of Hon.
Mr. Caron to a question as to the Agricultural Co-operative
Societies of Quebec that the Co-operative Centrale des Agri-
culteurs had made profits of $19,662 in 1916, $19,521 in 1917,
$23,056 in 1918, $33,831 in 1919, and $17,892 in 1920, and had paid
out of the latter year's profits a dividend of 6 per cent, for 1916
and of 8 per cent, for 1917-18-19 and 1920 — with the shareholders
numbering 8,153; the figures of Government payments to 42
Newspapers for advertising, publication of articles, etc., during
1919-20, given by Mr. Mitchell on Feb. 9th, as totalling $27,081,
— of which $8,642 went to the Montreal Herald.
On Feb. 22 J. E. Robert and H. Pilon moved for copies of
all correspondence relating to the Cattle Embargo; after dis-
cussion Messrs. Caron and Taschereau moved an amendment
that the House, "having considered all the facts relating to the
Embargo on Canadian cattle in England, is of opinion that such
an Embargo is prejudicial to the cattle breeders in the Dominion
and regrets that such Embargo is maintained." The latter was
carried unanimously after Hon. J. E. Caron had stated that the
British Government was trying to becloud the facts in the in-
terest of the big cattle graziers and that, even if that Govern-
ment wanted to keep Canadian cattle out, it should not slander
the products of the Dominion; other speakers urged action in
the interest of stronger ties between Canada and Britain.
Government Control of the Liquor Traffic. At the beginning
of the year it was generally understood that the Taschereau
Government would accept the principle of State control of this
business — a policy more or less necessary in view of the State
abolition of the traffic in all surrounding Provinces or States.
Ordinary laws and their enforcement had become increasingly
difficult to handle and would become impossible when a private
traffic was faced with the huge profits of a contraband trade
over the border. Efforts along the line of moderate legislation
had been made with, in 1919, the sale of whiskey prohibited ex-
cept for special purposes, with the sale of beers and light wines,
of specified alcoholic contents, permitted in cafes, etc. Abuses,
however, developed, and the law was not properly observed —
especially in Montreal.
The figures of crime were normal and the Montreal Police
Department reported 3 murders in 1920 as against 10 in 1919,
with 10 attempted murders in 1920 and none in 1919; burglaries
and thefts showed a slight increase. The vital point seemed to
be the creation of a class of profiteers who sold liquor at ex-
cessive prices, and often of a quality that seriously endangered
the public health ; the London Times correspondent stated at this
juncture that while the Vendors reported total sales to the
amount of $1,500,000, reports from importers indicated a sale of
over $6,000,000 worth to Vendors ; it was also asserted that the
total value of liquor imports into the Province was nearly $75,-
QUEBEC LEGISLATION; GOVERNMENT SALE OF LIQUOR 661
000,000 a year, and that, while there were only 2,000 physicians
in Quebec, tens of thousands of liquor prescriptions had been
issued — chiefly by a few doctors.
On Jan. 13, 1921, Mr. Taschereau indicated in the Legisla-
ture that the Government would take action along the lines of
control ; on Jan. 26 a new Bill respecting Alcoholic Liquors was
presented by Hon. W. G. Mitchell after a morning Caucus of
Government supporters at which the Premier fully explained
its terms ; another measure in this connection and respecting the
possession or transportation of Alcoholic Liquors was intro-
duced by Mr. Mitchell on Mch. 16th. The 2nd reading of the
first and principal Bill took place on Feb. 9th, when the Treasurer
explained its provisions at length. He stated that the existing
Prohibition Act had not proved a success, that it seemed to be
unworkable and that something else had to be done in order
to improve conditions in the Province. He traced the efforts of
the Government, in years past, to restrict the Liquor trade by
reducing- licenses and other means until the recent effort at
partial Prohibition was made.
It had failed because, in the great City of Montreal: "I
believe that 75 per cent, of the people, first of all, are against
Prohibition of any kind ; when you have a city of 700,000 people,
three-quarters of whom are against the provisions of a law, it
is an impossibility — with all the police force and detectives and
all the force the Government can give, or all the Courts can do —
to enforce that law." He quoted voluminous extracts from Pro-
hibition officers, police, ministers, and officials from all parts of
the Continent, to show that the same state of affairs existed
wherever a large proportion of the people were against strict
Prohibition and in favour of some sort of licensed sale. Then,
Mr. Mitchell turned to the question of Doctors' prescriptions,
and said that no man in his right senses would pretend that these
prescriptions had not been abused, and criminally abused. An
interesting statement as to Prohibition in other Provinces fol-
lowed :
In order to prove that it is not the majority of the people who want
Prohibition even in those Provinces that have just taken votes, let me
point out that in Manitoba, out of a population of 553,000, according to
the last Census, those who voted in favour of Prohibition were 68,831.
In Saskatchewan, out of a population of 647,000 only 86,849 voted in
favour of Prohibition; in Alberta, out of 496,000 population, there were
63,000 voted in favour of Prohibition ; in Nova Scotia, out of 492,000
population, according to the Census of 1911, only 83,422 voted in favour
of Prohibition. So that, in the three Western Provinces, the new law
goes into effect by the vote of from one-eighth to one-tenth of the
population and in Nova Scotia it was one-sixth.
Another indication of the effect of such laws is that in 1917 only 191
stills were discovered, in 1919-20 there were 985. Ontario showed an in-
crease from 50 to 296, Manitoba from nil to 137, Alberta from nil to 210,
Saskatchewan from 15 to 160 and Quebec from 11 to 43. There has also
been an increase in the importation of drugs, through regular channels,
to say nothing of what is smuggled. Thirty-five ounces of cocaine came
in in 1912; in 1919 the quantity was 12,333 ounces. Morphine jumped in
662 THE CANADIAN ANNUAL REVIEW
the same period from 400 ounces to 30,089, while opium increased from
5,017 pounds to 34,263. Prosecutions for the illicit sale of drugs were
made in 40 sections of the country and fines amounting to $20,000 col-
lected.
The debate continued on the 10th, with Brig.-Gen. C. A.
Smart, Henry Miles and C. E. Gault opposed to the legislation.
Mr. Sauve, the Opposition leader, opposed the Bill and stated
that in 1892 the Catholic Clergy had been against a proposal to
control the Liquor traffic as not a suitable business for a Catholic
Government to go into; he contended that the Government had
no right to change the law before they had properly tried to
apply it; he claimed that they had not done that, and so poli-
ticians, deputies and favourites were the associates of authorized
vendors, who had violated the law every day and had poisoned
and robbed the public ; he asserted that the proposed legislation
would undo all the work and education of years on behalf of
Temperance, for the Government was telling the people that
they could not get whiskey by the glass, but could get as much
as they liked by the bottle; he declared that the law was not
constitutional in view of the Doherty Act, and expressed a fear
that the Government-appointed Commission would be composed
of men who were politicians, or inspired by them.
Mr. Premier Taschereau replied at length, and repudiated
absolutely Mr. Sauve's allegations as to the Government and
the liquor profiteers : "The men who direct the affairs of this
Province are honest men who work for the good of the Prov-
ince, and who apply the laws to the best of their knowledge and
ability. The remarks of the Leader of the Opposition are the
fruits of his own imagination." The Prohibition law had not
worked, but it was generally approved at first — even by the
Temperance interests : "Those who obtained licenses became
millionaires and were profiteers. They had not all wanted to
take advantage of the conditions that arose, but human nature
being what it is one could not be surprised at the result ; the
licenses for import into Montreal were given to old-established
firms, and among them were men who had been Tories almost
since Toryism had existed — they had been given to respectable
firms, but how long they remained respectable is another matter ;
the Vendors' licenses had been given to those whom the Govern-
ment believed were the best qualified, and when they were given
I believe the Vendors intended to respect the law, but most of
them had not the moral force necessary to resist temptation."
He thought that public opinion had been against the 1919
law and now was against total Prohibition; personally, he was
opposed to it, and sincerely believed that the day such a system
was established in the Province there would be worse abuses
than those which now existed. The Prime Minister also pointed
out the impossibility of guarding their boundaries on land and
river; there must, therefore, be established some system of
Government control, and the Government had decided on the
QUEBEC LEGISLATION; GOVERNMENT SALE OF LIQUOR 663
law now proposed, so that the people could get good liquor, and
be able to buy it openly, without any hypocrisy. The new law,
if passed, was to go into force on May 1st and, meanwhile, the
authorized Vendors could dispose of their stocks ; the Provincial
Treasurer stated on Feb. 15, however, that this would not cover
new stocks ordered for shipment or received after Feb. 16th.
On Feb. 24 Mr. Sauve declared in the House that "the Prohibi-
tion law had been futile because influential politicians, active
legislators in the Province, had every interest in having it
broken"; if the Government would grant him a Royal Commis-
sion of Enquiry he would prove a number of general charges
which he presented.
Some of these he left to be inferred as follows: "Let the
Government grant me this Enquiry and I will show the role
played by a certain legislator in the district of Quebec with an
associate who is at present in Europe ; let them grant me this
Enquiry and honest people in this Province will see who organ-
ized certain Clubs in Hull where alcoholic liquor was sold day
and night ; let them grant me this Enquiry and the whole Prov-
ince will see how the entire Government may be implicated in
the organization and exploitation of the 'Compagnie des Liquers
de 1'Est,' and also in the business of Mr. Arthur Hinton." These
were specimens of a dozen veiled charges of the same nature
which the Opposition leader said he could prove. He concluded
by moving the appointment of a Royal Commission to investigate
the above accusations. If this were promised he would give
the names of the members of the Legislature who were said to
be implicated. The Prime Minister offered a Parliamentary
Committee with Conservative representation, but this was re-
fused and the motion was voted down without division.
Montreal was to be headquarters of the new Quebec Liquor
Commission which was to be created to administer the Act ; the
Bill was variously discussed during ensuing days with Peter
Bercovitch as, perhaps, the most constructive critic, and Mr.
Sauve as vehement in the persistent charge that un-named mem-
bers were interested in the illegal sale of liquor. On Feb. 17
the measure passed a 3rd reading and, after some Council amend-
ments had been received and accepted, the Royal Assent was
given on Feb. 25. The general terms of the Act gave the Com-
mission almost absolute power in the premises ; alcoholic liquors,
including alcohol, brandy, rum, whiskey, gin and liquors could
only be purchased at the Commission's establishments and,
whether sold to a person or shipped by parcel post, common
carrier or express, were restricted to one bottle ; hotels, restaur-
ants, steamboats, dining cars and clubs, having secured a license
from the Commission, could serve and sell Wine and Beer by the
glass or bottle, but they must be consumed on the premies dur-
ing a meal. The other chief provisions of the Act were as
follows :
1. The Act applied to all parts of the Province, except where the
Scott Act (old Canada Temperance Act) was still in force.
664 THE CANADIAN ANNUAL REVIEW
2 It created a Commission composed of five members, which was
vested with all the rights and powers belonging, generally, to corpora-
tions • it was to be appointed by the Lieut.-Governor-in-Council, and to
hold office "during good pleasure"; the members were to give all their
time to the discharge of their duties, and its functions were: (a) to buy,
have in its possession and sell, in its own name, alcoholic liquor in the
manner set forth in this Act; (b) to lease or occupy any building or
land required for its operations ; (c) to borrow sums of money, guaran-
tee the payment thereof and of the interest thereon, by the transfer or
pledge of goods or in any other manner required or permitted by law;
(d) to control the possession, sale and delivery of alcoholic liquor; (e)
to grant refuse, or cancel permits for the sale of alcoholic liquor or other
permits 'in regard thereto, and to transfer the permit of any person de-
ceased; (f) to prevent and investigate every contravention of this Act,
make every seizure of alcoholic liquor sold, kept or transported in con-
travention thereof, and apply for the confiscation thereof, whenever re-
quired by this Act, and to prosecute offenders in its own name before
any Court of competent jurisdiction ; (g) to act, for the purposes of this
Act, as the competent Provincial authority in connection with Customs
and Excise matters; (h) to appoint every officer, inspector, clerk, or
other employee, required for its operation, dismiss them, fix their salaries
or remuneration, assign them their official titles, define their respective
duties and powers.
3. It forbade restaurants, hotels, taverns, stores, groceries and clubs
to sell Beer and Wine to anyone not 18 years old, to any interdicted per-
son, to any keeper or inmate of a disorderly house and to any person
who habitually drank to excess.
4. It allowed grocery stores and others with a permit from the
Liquor Commission to sell Beer, provided that the quantity was not less
than one bottle at a time, and that such Beer was not consumed in the
Store — from 9 A.M. to 6 P.M., except on holidays and Sundays.
5. It prohibited the use of bars or counters for the sale and con-
sumption of Beer, and in the taverns all playing of music, singing and
dancing were prohibited.
6. It forbade the sale or delivery in the Province of any potable or
non-potable alcohol, spirits, wine or other liquor, with the exception of
Beer — except by and through the Commission.
7. It forbade the sale or delivery of Beer unless made by the Com-
mission or by a brewer, or other person, authorized by the Commission.
8. It declared that no brewer could sell Beer or ship it without a
permit granted him by the Commission, upon payment to the Commission
of a yearly duty of $5,000, or unless such sale or delivery was to a person
specially authorized by the Commission for the sale of Beer or of Beer
and Wine.
9. It established a long and complicated system of permits with fees
payable to the Commission for the right to sell Beer and Wine and regu-
lated the transportation and keeping of liquor.
The most important of the other points involved was the
permission of Sale for export though not under the con-
trol of the Commission* The Liquor Commission was
appointed by the Government on Mch. 1st, and included
Hon. George A. Simard, Member of the Legislative Council
since 1913, as Chairman, at a salary of $14,000; Hon.
H. G. Carroll, who resigned from the Court of Appeal and was
appointed Vice-Chairman, with a salary of $9,000; Napoleon
Drouin, ex-Mayor of Quebec, and A. L. Caron, President of the
_ *Note.— The Alcoholic lyiquor Possession and Transportation Act specified the
right of any Distiller or Wine Merchant under Dominion license to export liquor
manufactured by him, and also permitted continuous transportation through the
.Province or to outside points.
QUEBEC LEGISLATION; GOVERNMENT SALE OF LIQUOR 665
National Athletic Association, and the Quebec Province Motor
League, were two of the Commissioners, with Sir William E.
Stavert, a financial man of well-known war services, at a salary
of $8,000 each ; D. R. Murphy, K.C., of Quebec, lately law partner
of Sir Lomer Gouin, became Chief Attorney to the Commission
at $8,000 a year. The Act came into operation on May 1st, and the
Government had, meanwhile, refused any further time to whole-
salers to dispose of their stocks ; Mr. Taschereau stated in the
House that the Commission would buy and sell only pure liquor,
and for this the public seemed inclined to wait ; the boot-leggers
were in serious trouble because they could not expect, after the
1st, to sell poor whiskey at high prices to people who could buy
good liquor from the Commission.
Meanwhile, on Apr. 13, the Anglican Social Service Com-
mittee had reported to its Provincial Synod as to the new Act:
"This measure was evidently prepared with much care and its
drastic character seems to show that the Government realized
the situation created by the law now being superseded, and is
determined to support its legislation to the limit. The Bill pro-
vides that the Government take over the Liquor traffic; it will
itself carry on the trade in spirits, but grants permits for the
sale of beer and wine. Your Committee feels that the Govern-
ment is honestly endeavouring to deal with a traffic of moral
bearing and of old standing in the commercial world; in this it
should have the support of all right-minded citizens." Mr. Simard
was interviewed, on Apr. 26, and stated that the licenses issued
would be fewer than under the old law, and that 26 Government
stores would open in Montreal on May 1st; the total number
of permits actually given in the Province was reduced to 250
while in Montreal, alone, 1,500 applications were received.
Despite minor obstacles, and after two months of organi-
zation, Mr. Taschereau was able to state, on June 3rd, that:
"To-day the new system is in operation throughout the Prov-
ince and the results are beyond our own expectations* We have
Government stores in the principal cities and towns, apart from
Quebec City (Scott Act) and other places where Prohibition
exists. We desired to leave to each place its autonomy. The
Government stores are very well patronized. We have bought
liquor which belonged to former Vendors, who consequently
have suffered no loss, and the Commission has now started im-
portation from Europe. It is in receipt every day of offers from
large English and Scotch firms, while the best French firms are
already sending samples and offering their wines at a very low
price."
Following this the Commission published a series of adver-
tisements in the press describing the nature of the new law, the
powers of the Commission and the duty of the public. It in-
vited public co-operation in observance of the law and declared
(July 30) that: "It is a Temperance law demanded by the great
majority of the people. It recognizes the right of any Muni-
cipality to allow or prohibit the issue of licenses by the Com-
666 THE CANADIAN ANNUAL REVIEW
mission in its territory; it is a law of liberty because it allows a
citizen, who does not favour Prohibition, the right to obtain
pure liquors in a legitimate manner ; it is a law that assures
protection against the sale of adulterated liquors. The Com-
mission will sell to the public only pure alcoholic liquors and
natural wines which have been analyzed by chemists of estab-
lished reputations." On Sept. 12 Quebec City voted for the re-
peal of the Scott Act by 11,000 to 17,000, and this lessened one
complication in the way of the new law ; the Scott Act had been
carried in Quebec three years before by 4,000 majority. Chicou-
timi had recently voted to abolish this law and most of the
towns had come under the Quebec Liquor Act, although Vic-
toriaville and Farnham, Westmount, Verdun and Outremont,
near Montreal, and Levis, near Quebec, still remained loyal to
the Scott Act. In the rural districts there were a number of
Counties in which some of the municipal authorities objected to
the issue of permits.
By the close of the year the Liquor Commission was in full
operation and the new conditions in full swing. The Receipts
of the Commission in May were $291,084 and in December $2,-
559,146, with a total for the 8 months of $9,325,866; its dis-
bursements in May were $107,951 and in December $203,390, or
a total of $1,335,184. There were Prohibition references to the
law being abused but it did not appear that, in Montreal, crime
conditions were any worse along the lines affected by liquor.
Chief of Police Belanger* was authority for the fact of 11 mur-
ders, and an increase in thefts with violence ; this latter trouble,
and the increase in Juvenile crime, were, however, officially at-
tributed to Movie theatres and pool-rooms ; another cause given
was the laxity of the Immigration laws under which criminal
classes were allowed to return from the United States to Canada
after they had been deported.
The Department of Education in Quebec was
Education in not under political control as in all the other Prov-
Gaf aSd the" inces ' Jt was' n.owever» under the supervision of
University of ^on: ^. A. David, Secretary of the Province, and
Montreal; to him Cyrille F. Delage, Superintendent of Public
The Despatie- Instruction, reported for the year of June 30, 1921.
Tremblay Mr. Delage stated that the Congresses of School
Ca.e Boards— Trustees, Inspectors, Clergy— which he
was arranging from year to year were proving very
useful and that in this year they had covered the
Counties of Rimouski, Matane, Vaudreuil, Temiscouta, Sou-
langes, Laval and Jacques Cartier ; wherever held, these meet-
ings had resulted in an increased average attendance, augmented
salaries of teachers, new school municipalities and new or re-
paired buildings.
He reported notable progress everywhere in Teachers' sal-
aries: In 1912-13, there were only 75 female Catholic teachers
*Note.— Statement in the press of Mch. 8, 1922.
EDUCATION IN QUEBEC; A NOTABLE MARRIAGE CASE 667
who received a salary of $300 to $400; in 1920-21, 1,678 received
this amount. In 1912-13 there were only 180 female teachers
who received a salary of $250 to $300; in 1920-21, 1,020 received
that amount; in 1912-13, there were only 26 female teachers
who received a salary of $400 to $500; in 1920-21, 388 received
that amount." The number of School Municipalities in the
Province on June 30 was 1,718, of which 1,367 were Catholic and
351 Protestants — a total increase of 42 in the year; during the
year a sum of $1,588,669 was spent on building or repairing
school-houses, compared with $1,241,868 in 1919-20; 25 years
ago there had only been 2 Normal Schools for girls in the Prov-
ince and now there were 12, while important districts like
Beauce, Lake St. John and the Eastern Townships demanded the
same favour, and, for a long time, the Normal Schools of Que-
bec, Rimouski and Chicoutimi had been too small.
Mr. Delage drew special attention to the work initiated in
1917 by the Catholic School Commission of Montreal, along the
lines of Pedagogical instruction ; to the organized Courses ar-
ranged for the male and female teachers under its control;
to the aid given by the Sisters of the Congregation of Notre
Dame and the University of Montreal. He added: "These
courses, well co-ordinated, form the Pedagogical Institute af-
filiated to the University and directed by it. Their duration is
three years, during which 60 pedagogical lectures are given.
Last year and this year, His Lordship, the Rector of the Uni-
versity of Montreal, awarded to a large number of nuns, and to
many brothers and lay teachers, certificates and superior di-
plomas in Pedagogy, attesting the work and success of the
teaching body in that district."
The Department had proposed to Laval University at Que-
bec a similar organization for its Superior Normal School and
hoped for success. Reference was made to Bi-lingualism in
Quebec schools. The Superintendent stated that in Pontiac and
three other Counties he had found French was neglected in the
mixed schools ; the Department arranged to aid in the payment
of competent bi-lingual teachers and current reports showed
the teaching of the French language in 20 schools where it had
never been taught seriously ; a Report asked for by the Consul-
General for France — Marcel de Verneuil — upon the teaching of
the French language in Quebec Schools had been prepared and
submitted by C. J. Magnan, Inspector-General of Catholic
Schools, and it was published in this Report. Mr. Magnan's
conclusion was as follows :
Outside of France, no country in the world has such an absolutely
French school organization as that of the Province of Quebec — inhabit-
ed by more than two millions of French-Canadians. This French and
Catholic school system dates only from 1846. It required nearly a cen-
tury of struggle and the greatest sacrifices on the part of our fore-
fathers to gain it. To-day the French-Canadian people freely enjoy
their conquered liberties and the Protestant minority living among
them also benefits therefrom. Since 1846 there has never been any
school conflict in the Province of Quebec, because the immense French
668
THE CANADIAN ANNUAL REVIEW
and Catholic majority respects the rights of the English Protestant
minority.
Mr. Delage concluded his statement with a reference to the
celebration, on June 2nd, of the Jubilee in the teaching and edu-
cational career of J. N. Miller, the French Secretary of the De-
partment of Public Instruction, and his regret that there was
not an Order of Educational Merit to be bestowed upon such an
official. Mr. Magnan's Report as Inspector-General stated that
out of 7,000 lay female teachers in the Catholic Schools, only 386
had a permit from the Department — the others all had either a
Normal School diploma or one from the Central Bureau; that
the average class attendance of children from 5 to 18 years was
80 per cent, and more in 21 Divisions, from 75 to 79 per cent, in
17 Divisions and from 70 to 75 per cent, in 11 Divisions; that
while the number of female lay teachers making this a life call-
ing was increasing perceptibly, the too frequent changing of
teachers also showed an increase ; that in the 13 Catholic Normal
Schools, 1,237 pupils were in attendance with 164 male and 1,073
female lay teachers-in-training. J. C. Sutherland, Inspector-
General of Protestant Schools, reported chiefly as to salaries
of teachers, with the conclusion, that "rural elementary salaries
in any part of the Province, between $400 and $500, are insuf-
ficient to secure duly qualified teachers. In general, $600 or
better, appears to be the safety point at present." Consolidation
of Schools was being urged but without present success. The
following table of Statistics for the year of June 30, 1920, was
given in this 1921 Report :
(a) Roman Catholic Schools
Teaching Institutions
Elementary Schools
Model Schools
Num-
ber
of '
Schools
... 5,608
700
Fe-
Male male
reach- Teach- Total
ers ers pupils
234 6,861 223,329
831 2,442 105,807
1,298 2,854 103,221
42 152 1,318
13 151 8,147
742 8632
311 24 2,057
48 108 451
49 2,946
125 5 4,029
75 1,967
24 2,514
76 411
41 340
19 248
46 461
Aver- Ratios
age of aver-
At- age
tend- attend-
ance ance
160,639 71-93
80,999 76-55
85,023 82-37
1,221 92-64
6.253 76.75
7,940 91-98
1,889 91-83
422 93-54
1,287 43-69
2,239 55-57
1,469 74-68
1,578 62-77
319 77-62
257 75-59
248 100-00
421 91-32
Academies
Normal Schools
371
13
57
Maternal Schools....
Classical Colleges
21
2
3
14
52
Universities
Schools for the Deaf, Dumb and Blind
Schools for Arts and Trades
Night Schools
Technical Schools
5
Dress-cutting Schools
Agricultural Schools
School for Higher Commercial Studies
24
2
1
St. Hyacinthe Dairy School
Independent schools not subsidized
1
7
Totals
6,881 3,950 12,621 465,878 352,204 75-60
Elementary Schools
Model Schools
Academies
Normal Schools
Maternal Schools
Universities
Schools for the Deaf, Dumb and Blind
Night Schools
Agricultural Schools ..............!."..
Totals
(b) Protestant Schools
704
57
41
1
4
56
15
114
8
1,525
152
328
5
4
47,027
4,543
11,960
184
159
33,170
3,170
9,376
174
107
70-53
69-78
78-39
94-57
67 -30
2
2
13
1
207
3
29
84
7
10
2,203
91
1,069
267
1,964
89
530
259
89-15
97-80
49-58
97-00
825 516 2,031 67,503 48,839 72-35
EDUCATION IN QUEBEC; A NOTABLE MARRIAGE CASE 669
Educational incidents of the year included the bonuses voted
by the Legislature to aid Municipalities in regard to Teachers'
salaries and divided into sums of $125,000, $60,000, $30,000 and
$10,000, which were allotted according to the amount paid by
the municipalities concerned ; the publication of a volume of
Educational Statistics edited by G. E. Marquis and which for the
year of June 30, 1920, reported 7,706 schools, 19,118 teachers,
attendance of 533,381 pupils, with an average attendance of 75-19
per cent.; the similar volume for June 30, 1921, dealing with
School Corporations, also edited by Mr. Marquis, and reporting
Assets of $61,195,630, Liabilities of $42,638,543, Sinking Funds of
$1,925,445, Receipts during the year of $22,147,091 and Expendi-
tures of $21,024,007— the salaries paid to teachers being $6,722,-
061, compared with $5,598,708 in 1919-20.
Protestant teachers in the rural districts of Quebec became
increasingly difficult to obtain in 1921, several Model Schools
were without a sufficient Staff while rural attendance of pupils
was decreasing; by Order-in-Council, in July, the Provincial
Government grants of $1,000,000 each to Laval, McGill and
Montreal Universities were paid in a lump sum instead of by in-
stallments ; Louis Guyon, Deputy-Minister of Labour, stated, on
July 14, that about 11,970 children in Montreal, under the age
of 16 had registered for employment during the last 17 or 18
months, and that the majority of these were over 14. The 57th
meeting of the Provincial Association of Protestant Teachers of
Quebec met in Montreal on Oct. 6, with 1,342 delegates present
and W. A. Kneeland, President, in the chair; it was the largest
and most successful Convention on record, and Miss Isabel E.
Brittain, M.A., was elected President.
McGill University at Montreal. This historic institution
celebrated its Centenary on Oct. 12-16 of this year with a Re-
union of its graduates and various interesting functions and
ceremonies. The actual date of foundation, so far as the Charter
was concerned, was Mch. 21, 1821, when an endowment left by
Hon. James McGill, who died in 1813, enabled an institution of
learning to be fully organized in Montreal under Royal Charter,
and with power to establish the higher Educational courses, elect
professional bodies, organize a Staff and confer degrees ; in 1855,
under Sir William Dawson, the University had begun develop-
ment as a great institution ; in 1921 the faces of 7,000 graduates
were said to be looking toward their Mother institution from all
parts of the Continent and many other parts of the world. Local-
ly, the event was considered an important one following, as it
did, the great success of the previous year in organizing and
collecting a National Fund of $6,000,000 for the institution. As
the Montreal Star of Oct. 11 put it:
McGill is a heritage to the present and the future from the past. It
is a steadying, solidifying, influence, a power for good, a mighty source
of upliftment and of inspiration, for all who care to embrace the oppor-
tunities and drink in the teaching it offers. To-day, as never before in
670 THE CANADIAN ANNUAL REVIEW
its history, it is needed by the City, by the Province, by the whole Do-
minion. That the University will stand fast by its high traditions, none
need fear. It is for all who have at heart the future welfare of the citi-
zens and statesmen of Canada that are to be, to leave nothing undone
that lies within their power to strengthen the hands of those with whom
the direction of the destinies of this great University at present rests.
The celebration was arranged with much labour and inter-
est by the Montreal graduates through a Committee headed by
Brig.-Gen. G. Eric McCuaig, D.S.O., and it began with the receipt
of many messages from Universities, and institutions, and men
of note at home and abroad with, in many cases, special delegates
appointed to mark appreciation of the event — notably Cornell
and Glasgow Universities, Nebraska and St. Andrew's, Toronto
and New Brunswick. The first event was to have been a garden-
party and Pageant on the Campus but these were prevented
by torrents of rain. About 2,000 guests were present, instead,
at a Reception held under the auspices of the McGill Women's
Union with Sir Arthur and Lady Currie receiving the guests.
On the 13th about 2,500 graduates met at the Capital Theatre,
with Paul F. Size in the chair, to discuss matters associated with
the University and the Graduates' Society, and with addresses
from General Currie and Dr. C. W. Colby; there were 3,173
graduates registered, altogether, during the celebration.
During this day, also, the splendid collection of Historical
pictures and documents, aboriginal relics, Indian remains and
curios, archaelogical and ethnological antiquities of all kinds,
associated with the early records of Canada, and obtained over
a long period of years by David Ross McCord, was by him given
to the University, and formally handed over by W. D. Lighthall,
M.A., K.C., Convenor of the McGill Library Committee, and ac-
cepted by Sir Arthur Currie, as the McCord National Museum.
It included an Indian Room, a McGill Room, a James Wolfe
Room, a Pioneers' Room and a McCord Room — the latter illus-
trating the life of an early and historical Montreal family. An
Arts Re-union luncheon was held, together with a special Con-
vocation in St. James Methodist Church, which was packed with
graduates and guests. The procession in the Church was
led by H. E. the Governor-General and the recently-elected
Chancellor — in succession to Sir Robert Borden — E. W. Beatty,
K.C., President of the C.P.R., and Chancellor, also, of Queen's,
with Sir Auckland Geddes, British Ambassador to the United
States, and Sir Arthur Currie, the Prime Minister of Quebec
(Mr. Taschereau) and many other notables.
Mr. Beatty presided and made his initial speech as Chan-
cellor. In it he described two dangers facing Universities at
this time as (1) losing touch with the life and intellectual needs
of the people and (2) of becoming encrusted in tradition and
precedent, or strangled by a cast-iron curriculum: "The Uni-
versity and the people are like Mahomet and the mountain. If
the people will not come to the University, the University must
go to the people. An excellent example has been set by the
EDUCATION IN QUEBEC; A NOTABLE MARRIAGE CASE 671
oldest University of England — a thousand years old compared
to McGill's Centenary — the University of Oxford, which in-
stituted the now great University Extension Movement. Mc-
Gill University, in my humble opinion, must be prepared to teach
not only within the College buildings, but to come off the hill
into the streets, into the suburbs and country towns." In addi-
tion to this, he declared, McGill's proud position could only be
maintained "if it keeps step with the times, maintains an elastic
curriculum and Faculties receptive to new conceptions of edu-
cation." Lord Byng of Vimy — who laid stress upon the value of
adequate teaching in English History — the Hon. L. A. Tasche-
reau, Dr. J. R. Angell, President of Yale, and Dr. C. W. Colby also
spoke. Fifty-five degrees of Hon. LL.D. were bestowed upon
distinguished graduates and notable non-graduates :
Name Description Address
Frank D. Adams, ph.D Vice- Principal, McGill University Montreal
T. R. Angell, LL.D. utt.D President, Yale University New Haven
Hon. J. S. Archibald, M.A Acting Chief Justice of Quebec Quebec
H. S. Birkett, D.S.O., M.D Dean, Faculty of Medicine Montreal
A. D. Blackader, M.A., M.D.
Hon. J. T. Brown, B.A
William Bliss Carman, M.A
Canon J. S. E. Chattier, M.A
C. W. Colby, M.A., ph.D
W. W. Colpitts, M.SC.
C. Vandyke Corless, M.SC
Rt. Hon. Sir L. H. Davies
Wellington Dixon, B.A
John R. Dougall, M.A
Lady Drummond...
...Ex- Professor of Pharmacology Montreal
...Chief Justice of Saskatchewan Regina
...Distinguished Poet New York
...Vice- Rector, Montreal University Montreal
...Author and Late Professor of History Montreal
...Consulting Engineer New York
...Mgr. Mond Nickel Company Coniston
...Chief Justice of Canada Ottawa
...Rector, Montreal High School Montreal
...Editor, Weekly Witness Montreal
...Noted Red Cross Worker Montreal
George H. Duggan, D.SC President Dominion Bridge Co Montreal
Rt. Rev. J. C. Farthing, M.A Bishop of Montreal Montreal
W. S. Ferguson, M.A., ph.D Harvard University Cambridge, Mass.
Rev. D. J. Fraser, M.A., LL.D Principal, Presbyterian College Montreal
Sir J. G. Garneau, K.B Chairman, Nat'l Battlefields CommissionQuebec
Mgr. J. A. G. Gauthier, B.A., B.D Rector, University of Montreal Montreal
Sir Auckland Geddes, M.D British Ambassador Washington
James Harkness, M.c Acting Dean, Faculty of Arts, McGill Montreal
R. T. McKenzie, B.A., M.D University of Pennsylvania Philadelphia
James Grant Hibben, Ph.D., L.H.D President, Princeton University Princeton, N.J.
Phelps Johnson Designer of Quebec Bridge Montreal
G. L. Kittredge, LL.D Harvard University Cambridge, Mass.
Eugene Lafleur, K.C., D.C.L Emeritus Professor of International Law.. Montreal
J. B. Lawford, M.D., K.R.C.S Ophtalmic Surgeon London, Eng.
J. E. LeRossignol, A.B University of Nebraska Lincoln
W. D. Lighthall, M.A., K.c Author and Lawyer Montreal
D. R. McCord, B.A., B.C.L Founder, McCord Nat'l Museum Montreal
R. E. McKechnie, M.D..., Chancellor, University of B. C Vancouver
A. S. Mackenzie, ph.D President, Dalhousie University Halifax
Francis McLennan, K.C., B.C.L Barrister Montreal
Sir Andrew Macphail, Kt., O.B.B Professor of History, McGill Montreal
Alexander Macphail, C.M.O., D.S.O. Queen's University Kingston
F. H. Mewburn, M.D Physician Calgary
A. A. Michelson, ph.D., SC.D University of Chicago Chicago
Hon. J. B. Moore, A.B., LL.D Columbia University New York
Lt.-Col. Herbert Molson, M.C., B.sc Manufacturer Montreal
T. H. Morgan, LL.D., F.R.S Columbia University New York
W. C. Murray, M.A., LL.D University of Saskatchewan Saskatoon
Rt. Rev. J. A. Newnham, M.A., D.D Formerly Bishop of Saskatchewan Regina
M. Paul Pelliot Professor, College of France Paris
D. F. Porter Chief Engineer, Dominion Bridge Co Walkerville
Helen R. Young Reid, B.A., LL.D Convenor, Montreal Patriotic Fund Montreal
Sir T. G. Roddick, M.D., LL.D Faculty of Medicine, McGill Montreal
H. J. Silver, B.A Superintendent of Protestant Schools Montreal
Rt. Rev. J. F. Sweeny, M.A., D.C.L Bishop of Toronto Toronto
Hon. L. A. Taschereau, D.C.L Prime Minister of Quebec Quebec
R. Bruce Taylor, M.A., D.D., LL.D Principal, Queen's University Kingston
Casey A. Wood, M.D., D.C.L Chicago Post-Graduate Medical School...
George M. Wrong, M.A University of Toronto Toronto
Other events of the Celebration included Class Dinners at
the Windsor and Ritz-Carlton ; sports and games at the Uni-
672 THE CANADIAN ANNUAL REVIEW
versity Stadium and the presentation of a flag-staff to the Uni-
versity by Stopford Brunton, who had raised the McGill Siege
Draft in 1917 and was second-in-command of the Battery in
France ; a Reception and Dance in the new Medical Building and
a visit of 300 graduates to Macdonald College at Ste. Anne; a
tremendous Foot-ball match with 12,000 people present and a
Special Church Service organized by the Theological Colleges
and Y.M.C.A. organizations ; the unveiling by H. E. the Govern-
or-General of a bronze Memorial Tablet to the 121 graduates
and students of McGill who lost their lives in the World-War;
the publication of a Special Centenary number by the McGill
News — issued by an Editorial Committee with J. L. Todd, B.A.,
as the 1921 Chairman. The following Honourary Graduates
were created: Hon. J. T. Brown, B.A., Chief Justice of Saskatche-
wan; J. E. LeRossignol, Ph.D., U,.D., University of Nebraska;
D. R. McCord, B.A., B.C.L., Founder of the McCord National Mu-
seum; Lieut.-Col. Herbert Molson, M.C., B.SC. ; Rt. Rev. J. C.
Farthing, M.A., D.D., D.C.L., Bishop of Montreal; Sir Auckland
Geddes, M.D., British Ambassador at Washington; James Hark-
ness, M.A., Acting Dean of the Faculty of Arts, McGill; Phelps
Johnson, ex-President Dominion Bridge Co. ; A. S. Mackenzie,
Ph.D., D.C.I,., U,.D., President of Dalhousie University. ; M. Paul
Pelliot, Professor in the College of France ; R. Bruce Taylor,
M.A., D.D., LL.D., Principal, Queen's University; G. M. Wrong,
M.A., Professor of History, University of Toronto.
The registration of students at McGill for 1920-21 totalled
2,786, of whom 537 were in Arts, 724 in Medicine, 39 in Phar-
macy, 154 in School of Commerce, 676 in Applied Science, 120 in
Dentistry, 132 in Law, 77 in Agriculture, 97 in Music, 72 in
Social Service, 70 in Physical Education, 37 in School for Gradu-
ate Nurses and 50 in the Graduate School of M.A., M.Sc., and
Ph.D. There were, also, 1,341 enrolled in various Extension
Courses. McGill's incorporated institutions were the Macdonald
College at Ste. Anne de Bellevue — containing the three Univer-
sity Departments of Agriculture, Household Science and School
for Teachers, the Royal Victoria College or Women's College of
the University. Its affiliated institutions included Acadia, Al-
berta and Mount Allison Universities and St. Francis Xavier's
College; the Royal Military College, Kingston, and the Theo-
logical Colleges of Montreal — Congregational, Diocesan, Pres-
byterian and Weslyan. The Registration for 1921-22 was 2,769.
It may be stated here that the final total of the McGill Endow-
ment Fund of 1920 was $6,440,000.
Incidents of the year included the election of the following
notable graduates of the University to Parliament : S. W. Jacobs,
K.C., W. F. Kay, B.C.I,., Herbert M. Marler, B.C.L., Hon. W. G.
Mitchell, B.C.L., K.C., L. S. R. Morin, B.A., B.C.I,., A. R. McMaster,
K.C., J. C. Walsh, K.C. The annual Report of the Graduates' So-
ciety of McGill (November, 1921) showed 1,900 members and 16
Branches with P. F. Size as President and Eugene Lafleur, K.C.,
EDUCATION IN QUEBEC; A NOTABLE MARRIAGE CASE 673
and C. Graham Drinkwater elected as representatives on
the Board of Governors. At the annual Convocation on May
12th 73 degrees in Arts were conferred, 87 in Applied Science, 50
in Law, 14 in Dentistry, 13 in Graduate School — 5 M.A., 6 M.Sc.,
1 Ph.D. ; on May 27 the degree of B.Sc. in Agriculture was con-
ferred upon 27 students with, later on, degrees in Medicine upon
99 students. Other incidents of the year included the election of
R. F. Ruttan, D.SC., F.R.S.C., Professor of Chemistry, as President,
at the Montreal meeting of the Society of Chemical Industry of
Great Britain; the receipt at the end of the year of $1,000,000
from the Rockefeller Foundation, for the Medical Faculty; the
selection of Dr. A. B. Macallum, head of the Department of Bio-
Chemistry, by the Rockefeller Foundation, to conduct an ad-
vanced course of lectures in the Medical College of Pekin, China.
During the year initiation by McGill of Extension lectures
in Industrial Chemistry under the direction of Charles Hazen,
M.SC., took place, with the establishment by the University of a
Memorial Fellowship to be awarded annually to a promising
student wishing to pursue a post graduate course in Geology at
McGill and in memory of Osmond Edgar LeRoy who was killed
in the War. A two-year course, bringing the standard of the
Department of Social Service up to that of any other School of
Social Service on the Continent was inaugurated; the winning
was announced, by Leslie Gale Saunders, Halifax, of the Scholar-
ship granted by His Majesty's Commissioners for the Exhibition
of 1851, valued at £200, tenable for two years, and offered in
branches of Science, the extension of which was "specially im-
portant to national industries"; a donation of $1,000 a year for
5 years was received from Dr. J. W. Flynn of Prescott, Arizona,
for Research work.
A Special Extension Course for Bankers was established
covering many important subjects, with 40 lectures; the decision
of the Governors (Dec. 14) was announced to raise the standard
for entrance to the Faculty of Medicine by making one year in
Arts, senior matriculation, or its equivalent, necessary for all
wishing to enter the 1st year in that Faculty and to change the
conditions of the LL.B. and B.C.L. courses so that the former
would be conferred on those completing the course qualifying
for practice elsewhere in the Dominion, and that of B.C.L. on
those qualifying for practice in Quebec; there was also a de-
cision of the Governors to re-organize the Faculty of Medicine.
Notable retirements during the year were A. D. Blackader, M.A.,
M.D., I.L.D., as Professor of Pharmacology; R. W. Lee, M.A., D.C.L.,
K.C., Dean of the Faculty of Law, upon appointment to the Chair
of Roman-Dutch Law at Oxford; Henri A. Lafleur, M.D., Pro-
fessor of Medicine. Amongst the important appointments were
those of Gordon Jennings Laing, B.A., Ph.D., LL.D., University of
Chicago, as Dean of the Faculty of Arts ; Arnold Wainwright,
K.C., as Professor of the Law of Evidence, and Prof. C. M. Mc-
Kergow as Head of the Department of Mechanical Engineering ;
674 THE CANADIAN ANNUAL REVIEW
Basil Williams, M.A., Kingsford Professor of History and Prof.
Ian A MacKay to the chair of Constitutional Law ; H. M. Mac-
Kay as William Scott Professor of Civil Engineering, and Dr.
Stephen Leacock as Dow Professor of Political Economy; Dr.
T C. Hemmeon as R. B. Angus Associate Professor of Eco-
nomics ; C. E. Freyer, M.A., Ph.D., as Professor of History ; F. M.
G Johnson M.SC, Ph.D., Professor of Inorganic Chemistry; Miss
Helen R. Y. Reid, Rev. Dr. A. P. Shatford, Wellington Dixon,
BA and H T. Silver, B.A., were appointed Governors' Fellows.
The annual Report for 1920-21 of Sir A. W. Currie dealt
with various 1920 matters and, also, with some already referred
to in these pages. In the Medical Faculty the following had
been appointed Heads of Departments to act until the end of
the 1922-23 Season:
Medicine and Clinical Medicine Dr. F. G. Finley
Surgery and Clinical Surgery Dr. G. E. Armstrong
Obstetrics and Gynaecology... Dr. W. W. Chipman
Oto-Laryngology Dr. H. S. Birkett
Ophthalmology Dr. J. W. Stirling
This Faculty also established a new degree, that of Bachelor
of Science in Medicine, with the major subject of study as one
of the following: Anatomy, including Embryology and Histo-
logy ; Bio-chemistry ; Pharmacology ; Pathology ; Physiology.
The admission standards were raised: "For admission to the
Faculty of Law, Senior Matriculation, or the completion of the
First Year in Arts, will henceforth be required. In order to
obtain admission to the Faculty of Medicine the same standard
must be obtained for the Session of 1922-23." So with the Fac-
ulty of Music. Amongst new donations mentioned by the Prin-
cipal were the complete Library of the late Mr. Justice A. G.
Cross, which had been donated by his son and sisters, and an
original oil portrait of Lady Elgin, presented by Dr. W. D.
Lighthall. An important special appointment was that of Dr.
F. D. Adams, Dean of the Faculty of Applied Science and former
Acting-Principal, as Vice-Principal of the University. General
Currie, also, made an earnest reference to the death of his
eminent predecessor, Sir William Peterson, on Jan. 4.
The University of Montreal — so long known as Laval of
Montreal— made great progress in 1921. In 1919 and 1920 the
Montreal Branch of Laval was given its complete autonomy de
jure et de facto. In the canonical order, Montreal University had
been established since the 8th of May, 1919, by a rescript prev-
ious to the Pontifical Bull. The Civil Charter was accorded by
the Quebec Legislature, on the 14th of February, 1920. Its
registered students in the 1920-21 Session totalled 3,656, and
included 297 in Theology; 118 in Law; 349 in Medicine; 110 in
Letters ; 10 in Science ; 172 in Dental Surgery ; 20 in the School
of Veterinary Medicine; 171 in that of Pharmacy; 93 in that of
Social Science and Political Economy; 139 in the Polytechnic
School — Engineering and Architecture; 110 in the Agricultural
EDUCATION IN QUEBEC; A NOTABLE MARRIAGE CASE 675
College, Oka ; 209 in the School of Higher Commercial Studies
(Faculty of Commerce) ; 630 in the Conservatory of Music; 150
in the Institute of Modern Teaching ; 65 in the School of Music ;
60 in that of Household Science and 153 in that of Sacred Music;
500 in High Schools.
There were 15 officers of Instruction in the Faculty of Theo-
logy, 17 in that of Law, 82 in Medicine, 11 in Letters, 12 in
Science, 25 in Dental Surgery and 19 in Commercial Studies ; the
Associated Schools, Colleges and Departments, included 228, or
a total of 476. Archbishop Paul Bruchesi was Chancellor of the
University, the Rt. Rev. Dr. George Gauthier, Rector, Sir Lomer
Gouin, Chairman of the Council, Very Rev. Canon E. Chartier,
Vice-Rector, Hon. F. L. Beique, Chairman of Administrative
Committee, Edouard Montpetit, General Secretary. The follow-
ing were the Deans of the various Faculties in 1921 :
Theology Very Rev. Albert Urique.
Philosophy Rev. Leonidas Perrin.
Law Hon. Eugene Laf ontaine.
Medicine L. de Lotbiniere Harwood.
Letters Very Rev. Emile Chartier.
Pure Science Rev. Louis Joseph Morin.
Dental Surgery Eudore Dubeau, M.D.
The Director of the School of Social, Economical and
Political Sciences was Edouard Montpetit, the Principal of the
Polytechnic School was Aurelien Boyer, the President of the
School of Higher Commercial Studies was Emilien Daoust, and
the Director Henri Laureys. There was. also, a Faculty of
Philosophy with Rev. Leonidas Perrin, D.D., ph.D., D.C.L., as Dean,
but the particulars are not available. The Colleges affiliated to
the University included those of Ste. Therese, TAssomption,
Joliette, St. Laurent, Sherbrooke, St. Hyacinthe, Rigaud, Valley-
field, St. Jean, Ste. Marie (Jesuit) and Loyala College, Montreal
(Jesuit). In connection with the Fund raised in 1920 Senator
Beique stated on Jan. 13 that during the next five years the fol-
lowing capital would be available: 1920-1921, $565,136; 1921-
1922, $1,104,297; 1922-1923, $1,669,709; 1923-1924 , $2,253,191 ;
1924-1925, $2,275,118. After that $1,064,021 would be on hand,
as several subscriptions were for ten years, and that from the
Sulpicians extended over fifty years.* Through the Rockefeller
Foundation gift the most modern apparatus had been added to
the Medical laboratories, and the total cost of repairs and equip-
ment to the Building destroyed by fire a year before was $427,-
109. Honourary degrees of LL.D. were conferred in 1920-21 up-
on Marshal Foch and E. Cotelle, President, French Association of
Notaries, Hon. J. B. G. Lamothe, Chief Justice of Quebec, and
Hon. E. Guerin of the Superior Court.
Other Educational Institutions of Quebec. Laval University,
Quebec, one of the leading Catholic institutions of the Con-
tinent, opened its academic year, 1921-22, with a Faculty num-
*Note.— See Quebec Educational Section in 1920 volume.
676 THE CANADIAN ANNUAL REVIEW
bering 92; during the preceding Session of 1920-21, 448 students
were registered in the different Courses at the University
proper; 807 attended affiliated Colleges and followed the pre-
scribed course in Arts ; 141 were students at the Schools of
Commerce, Agriculture and Secondary Education; or a total
registration of 1,406. Of these 172 received Bachelorships in
Agriculture, Science, Arts and Letters, Medicine, Law and
Theology, while 66 other degrees were conferred for special and
post-graduate work, with 9 doctorships in Letters, Law and
Theology.
The 1921-22 Calendar issued by the University showed that
275 students and former students had enlisted from the Sem-
inary of Quebec and the University, of whom 13 had been killed
in action and 28 had received decorations for distinguished
service. The Seminary at Quebec, conducted in affiliation with
the University, reported a total of 781 Students attending classes
in 1920-21. Incidents of the College year including the opening
of Ecole Normale Superieure and Ecole de Commerce, and, in
September, 1921, the Ecole de Chimie ; the deaths of Sir Adolphe
Routhier, Professor of International Law, Prof. J. Bouffard
(Forest Law), and Prof. L. P. Pelletier ; the donation of $25,000
to the University by the family of Sir William Price — following
a similar one by Sir William in 1920. The Rev. N. Gariepy, D.D.,
Superior of the Grand Seminary, was also appointed Rector of
Laval during the year.
Loyola College, Montreal, occupied a unique position in
being the only institution above High School grade for English-
speaking Catholics in the Province of Quebec; while affiliated
with Laval University, it prepared its students for the profes-
sional work of McGill and Toronto, and enjoyed complete auton-
omy in the conduct of its studies. There were, in 1921, 13 Pro-
fessors or lecturers on the College Staff with an enrollment of
350 students. The course of studies resembled that in vogue
throughout the Province in maintaining classical traditions and
in giving a place of prominence to Latin and Greek ; at the same
time, Loyola had incorporated into its course subjects taught in
English-speaking Universities such as Mathematics and the
Natural Sciences. It conducted a Classical High School which
attracted boys from various parts of Canada because of its posi-
tion as representing in Higher Education the English-speaking
Catholic element of Quebec ; the Loyola School of Sociology and
Social Service conducted a two-year course of studies in Social
Ethics, Social Economics, Social and Economic History, Hygiene,
English and Public Speaking, Social Law, Statistics, Dietetics,
Child Welfare, Hospital Social Service, Psychology, Psychiatry
and Psycho-Pathology, Field Work. It also had a system of
Extension lectures. The Rector of the institution was the Rev.
W. H. Kingston, s.j., and the registration figures for 1920-21
were 350, compared with 300 in 1919-20. According to the beau-
tifully-published Loyola College Review, there were in the 1918
EDUCATION IN QUEBEC; A NOTABLE MARRIAGE CASE 677
College year 278 College Old Boys on active Service with 36
killed.
The Theological Colleges of Montreal — Congregational,
Anglican, Presbyterian and Wesleyan — in conjunction with Mac-
donald College, repeated the Session of the Summer School for
Rural Improvement, held the year before, and met at the last-
named College during August 2-12, 1921, with F. C. Harrison,
D.SC., F.R.S.C. (Principal of Macdonald College) presiding. The
number of students taking courses at the 4 Colleges in the year
ending Mch. 31, 1921, in order named, were 19, 18, 54 and 123
respectively, or a total of 214 plus 16 special students in Re-
ligious Education. The Treasurer's statement gave the total
receipts as $35,658 and showed assets of $544,154, at the end of
the above fiscal year. Incidents of the year included the appoint-
ment of G. F. Grosjeau, B.A., as Travelling Fellow for 1921-23;
the award of a Fellowship to C. H. Hetherington, B.A., and the
appointment of the Rev. S. P. Rose, D.D., as Professor of the Eng-
lish Bible and Hermeneutics, at the Wesleyan College. The
University of Bishops' College, Lennoxville, Quebec, for the year
ending June, 1921, enrolled 62 students and awarded 23 degrees
in Arts and Theology ; the Hon. degree of D.C.L. was conferred
upon Sir Charles Fitzpatrick, Lieut.-Governor of Quebec, the
Rev. Canon Gould, M.D., and Lieut.-Col. W. H. Blaylock, C.B.E.
In the Treasurer's Report for the College year the Revenue was
given as $45,948; Assets of the University $685,870; Special
Funds $230,633.
The Despatie-Tremblay Marriage Case. Associated with
the religious feeling, the legal system and the public sentiment
of Quebec, the Judicial settlement of this question by the Im-
perial Privy Council was an important event of the year. In
1904 the parties to this case, Malvina Despatie and Napoleon
Tremblay, were married in the Roman Catholic Church of Ste.
Victoire, at Richelieu, by their Cure. The civil formalities were
all duly observed. Both parties were Catholics and cousins in
the fourth degree, through common ancestors married in 1781,
who were their great-great-grandparents. Neither knew of the
relationship. They lived together after the marriage, but had
no children. In 1909 (May 16) the husband, having become
aware of the relationship, applied to the Bishop of St. Hyacinthe
to have the marriage declared null and void, quoting a rule of
the Roman Catholic Church, formulated at the Lateran Council
in 1215, which forbade the marriage of Catholics related as
cousins in the fourth degree unless a dispensation was first ob-
tained.
On Feb. 10, 1910, an ecclesiastical Court, representing the
Bishop of St. Hyacinthe, found that such relationship had been
established upon the proof shown, and pronounced the marriage
to be null and void, without civil or legal effects. In the Superior
Court of the District of Richelieu, at Sorel, on Oct. 4, 1910, Mr.
678 THE CANADIAN ANNUAL REVIEW
Justice Bruneau gave judgment pronouncing the marriage to
be null and void, without civil or legal effects. On Mch. 20,
1911, the Court of Review, in Montreal, Sir Melbourne Tait and
Justices Fortin and Mercier present, found that the proof sub-
mitted by the plaintiff was illegal and insufficient, he not having
proved the religious faith of the defendant, and not having legal-
ly proved the relationship between the parties, nor that such a
relationship of the degree alleged constituted an impediment
that invalidated a marriage according to the rules of the Roman
Catholic Church. The Court of Review held, therefore, that
there had been an error in the judgment of the Court of first in-
stance, and reversed the decision.
The case again came before Mr. Justice Bruneau at Sorel,
and, on June 26, 1911, after a lengthy hearing, he rendered judg-
ment again annuling the marriage in practically the same terms
as given in his former decision. In the meantime, the woman
had offered to obtain a dispensation and go through the mar-
riage ceremony again, and, on Nov. 29, 1912, the Court of Review
in Montreal, Justices Tellier, De Lorimier and Archibald pre-
siding, confirmed the above judgment of Mr. Justice Bruneau.
On Mch. 28, 1913, the Court of Review in Montreal, Justices
Tellier, De Lorimier and Greenshields presiding, granted Malvina
Despatie permission to appeal to the Judicial Committee of the
Privy Council from this latter judgment. Arguments in the
case were first heard by the Judicial Committee in May, 1914.
On Feb. 10, 1915, their Lordships took an unusual course in
directing that the case be re-argued before them ; they desired
as full an explanation as possible of the old French laws govern-
ing marriage, and also to ascertain how far those old laws had
been incorporated into the legal system of the Province of
Quebec.
On July 29, 1920, after three days' argument, the Judicial
Committee reserved judgment, and since that time the case had
been held under consideration by their Lordships. An interest-
ing turn was given to the whole case in September, 1920, when
it was announced that Tremblay and Malvina Despatie had been
re-married at Ste. Victoire, a dispensation having been secured
from Bishop Bernard of St. Hyacinthe. Since this case was first
instituted, half a dozen cases of a similar kind, Roman Catholic,
Protestant and Jewish, had come before the Superior Court of
the Province, and in each instance the Judges gave civil sanction
to the previous decisions of the ecclesiastical authorities. The
definite decision in England was given on Feb. 11, 1921, by Lord
Moulton on behalf of their Lordships. He reviewed Article 127
of the Civil Code of Quebec as not affecting the matter in dis-
pute one way or the other ; this did not apply to the rest of the
Code, which "must be interpreted as a whole whatever the form
of a particular Article."
Nothing that occurred before the Cession of Quebec could
be taken into account : "It must be remembered that before the
EDUCATION IN QUEBEC; A NOTABLE MARRIAGE CASE 679
Cession Canada had been governed by the laws of a country
which recognized no religion but the Roman Catholic. Pro-
testants were allowed no civil rights ; their marriages were
held invalid and their children accounted bastards. When Can-
ada became the possession of a Protestant Power, which, though
it had permitted the practice of the Catholic religion, put Catho-
lics under grave disabilities, all of this was of necessity changed.
The laws of England would have obtained in Canada unchanged
had it not been that stipulations were made in the various
Capitulations and in the Act of Cession to secure religious free-
dom for Catholics, Is was from these alone and the subsequent
Acts of Parliament relating to Canada that all the rights of
Roman Catholics in Canada were derived. Full effect must be
given to the engagements thus entered into and the provisions
of the laws thus passed. They were definite and ample to secure
to the individual full religious liberty." A close and detailed
study and analysis of historical documents, legislation, and laws,
followed, with the judgment given as follows :
It remains to apply the law thus enunciated to the circumstances of
this case. The marriage was contracted in all good faith. It was sol-
emnized openly by a competent official and after due proclamation of the
banns. It may be taken that if all the facts as to the relationship of the
parties had been known the officiating priest would have required the
parties to obtain a dispensation, seeing that at that date the Roman
Catholic Church considered the extremely distant relationship sufficient
to make a dispensation necessary, although their Lordships understand
that such is no longer the case. Had he refused to solemnize the mar-
riage without such a dispensation being obtained he would have been
within his rights, and the law woufd have supported him in his refusal.
But nothing of the sort took place. The marriage was performed with
all legal formalities, and did not come within any provision of the Code
which deals with questions of nullity. The relationship of the parties
was not within the provisions of Article 124, 125, or 126, in respect of
which actions contesting marriages on the ground of relationship can
alone be brought. The marriage therefore falls under the absolute rule
laid down in Article 185: (Marriage can only be dissolved by the natural
death of one of the parties ; while both live it is indissoluble.) Their Lord-
ships are therefore of opinion that this Appeal should be allowed, and
that the marriage between the parties should be declared valid and sub-
sisting. They make no order as to costs.
The Canadian lawyers in this notable case were Arnold
Wainwright, K.C., for the Appellant, Paul St. Germain, K.C., for
the Respondent, while Sir Donald Macmaster, K.C., held a watch-
ing brief for the Church of England in Canada. The matter
was very largely a case of internal action, polity and discipline
within the Roman Catholic Church; yet the decision appealed
to the expressed satisfaction of other religious bodies. H. C.
Hocken, and the Orange leaders in Ontario, claimed that they
had put up the money for the appeal.
680 THE CANADIAN ANNUAL REVIEW
The year was not a favourable one, in many
Agriculture respects, for Quebec. The crops, as a whole, were
and Industry; light, especially hay, while roots and cereals were
General below the average; pasturage was not good and,
Resource* though Dairy products held their own, the prices
diction. " had decreased ; the lumber cut was smaller than in
1920 and prices had fallen while demand lessened;
so, in pulp-wood, where the over-production of the preceding
year and the fall in prices had made business stagnant; the
competition of Newsprint from other countries in the United
States had a noticeable effect upon both the demand and prices
for paper and the paper industry of Quebec was far from pros-
perous; the fur business was poor with almost pre-war prices;
in manufacturing there was a decrease in production with some
closing down of factories, a plentiful supply of labour and
slightly lower range of wages. With all this said, however, the
Province did not lack prosperity; its people probably felt the
depression less than any other part of the Canadian population.
There was, in fact, room for some rest in the progress of ex-
pansion.
Between 1910 and 1920 the number of industrial establish-
ments had grown from 6,584 to 11,061, the annual wages and sal-
aries paid employees from $69,432,967 to $159,732,521 and the
value of products from $350,901,656 to $988,433,364.* Quebec
possessed all the natural bases for large industrial development
— a wealth of water-powers and natural resources ; a great River
and excellent ports, fine railway facilities and waterways, and
a splendid class of artisans and workers. In Water-powers the
Province was generously endowed. After careful investigation
the Department of Lands and Forests estimated the gross
water-power of the rivers of Quebec at about 15,000,000 horse-
power. Excluding the rivers of the far north, Ungava, etc.,
there were 6,000,000 h.-p. for the inhabited portions — and, out
of this total, over 900,000 h.-p. was developed; it had, in a few
years, caused cities and towns to spring up in places covered
by the virgin forest — such, for instance, as Grand 'Mere, Shaw-
inigan, LaTuque, Port Alfred, and Clarke City.
In 1921 there were 63 Hydraulic plants installed at a number
of points in the Province with a turbine capacity of 931,129 h.-p.
In the Dairy industry there were 1,808 Butter and Cheese fac-
tories (1920) with a product of $23,580,942 in Butter and $13,-
373,250 in Cheese ; in 25 industries running from a product of 5
to 15 millions (1919) there were 3,052 establishments and 57,798
employees. The following were the 14 chief industries and,
though the figures were not so large in 1921, as a result of the
depression, they indicate the industrial character of the Prov-
ince:
*Note.— Provincial Official Statistics; G. E. Marquis Head of Bureau.
AGRICULTURE AND INDUSTRY.; RESOURCES OF QUEBEC 681
Industries
Log Products
Cottons
Flour and Grist Mill Products..
Boots and Shoes
Tobacco, cigars and cigarettes..
Wood pulp and paper
Butter and cheese
Slaughtering and meat-packing
Clothing, men's factory
Shipbuilding and repairs
House building
Rolling mills and steel furnaces
Foundry and machine shop pro-
ducts
Electric light and power
Value
of
Production
$61,493,919
57,530,438
42,061,066
41,842,877
41,819,110
41,370,078
36,163,011
28,393,392
28,114,761
23,303,172
21,897,341
21,653,001
18,410,037
16,553,543
Estab-
lish-
ments
1,419
12
428
91
44
12
1,867
15
82
11
285
16
134
146
Em-
ployees
17,678
10,454
1,209
9,546
6,608
8,671
1,729
2,012
8,107
6,481
8,298
4,481
5,641
2.404
Value of
Production
per Em-
Estab't ployees
43,336 3,478
4,794,203 5,503
98,273 34,789
459,811
950,434
3,447,506
19,369
1,892,892
342,862
2,118,470
76,883
1,353,312
4,383
6,328
4,771
20,915
14,112
3,467
3,595
2,640
4,832
137,388
113,380
3,263
6,885
Em-
ployees
per
Estab't
12-4
871-1
2-8
104-9
150-1
722-5
1-
134-1
98-8
589-1
29-1
280-
42-
16-4
Despite any conditions of temporary depression, therefore,
Quebec in 1920 and 1921 was the largest producer of wood pulp
of any Province in Canada, and also led in the manufacture of
shoes, clothing, cotton fabrics, structural steel, railway rolling
stock, tobacco and refined sugar. As to Agriculture, the Prov-
ince, in 1920, had reached the peak of its production with a total
value of $330,251,000 compared with $98,779,000 in 1914; the in-
crease was three-fold while in prices the increase was not more
than double ; in 1921 the total, according to Federal figures, was
$219,154,000, or a decrease of $111,000,000 in the year. The chief
items of production in 1921 were Spring wheat, 2,754,000 bushels
and $4,379,000 in value; Oats. 50,591,000 bushels and $30,355,000;
Barley, 4,073,000 bushels and $4,073,000; Peas, 963,000 bushels
and $2,408,000; Beans, 530,000 bushels and $1,685,000; Buck-
wheat, 3,503,000 bushels and $3,503,000; Mixed grains, 4,038,000
bushels and $3,432,000; Potatoes, 36,089,000 bushels and $28,-
871,000; Turnips, 16,934,000 bushels and $6,774,000; Hay and
Clover, 4,205,000 tons and $121,945,000; Fodder corn, 806,000
tons and $7,657,000 in value.
These were estimates and, as usual, there was considerable
difference between them and the Provincial figures which, in
December, 1921, were given in a Provincial Bureau Bulletin as
$192,773,000. The worst loss of the year was in the Hay crop,
which decreased largely in product and about $150,000,000 in
value. The number of Animals in the Province during 1921
showed a slight decrease in horses, cattle and sheep while in
values, for all animals, the Federal figures showed a total de-
crease of $79,000,000^from $206,814,000 in 1920 to $127,515,000.
Horses during 1921 numbered 406,959 valued at $36,219,-
000; Cattle were 2,052,494 and $71,113,000 respectively; Sheep
1,006,620 and $6,040,000 respectively; Swine 883,920 and $14,-
143,000. The great decreases were in value, with 19 millions for
horses and 48 millions for cattle. Taking the Province as a
whole, its estimated gross agricultural wealth (Dominion Bureau
of Statistics) in 1921 was $1,288,813,000 in which Land, Build-
ings and Implements represented $830,795,000 and Livestock,
Poultry, Fur Farms and Agricultural products made up the bal-
ance. The following table shows the Agricultural Income of
682
THE CANADIAN ANNUAL REVIEW
the Province during a 4-year period and also the deflation in
Prices.
Quebec
Fa^-m A^mals'^ldy.;."'.'.'.'.'.......... " 40.862,000
Dairy Products
Fruits and Vegetables
Poultry and Eggs
Fur Farming
Maple Products
Tobacco
1918
1919
1920
1921
276,777,000
$309,963,000
$330,251,000
$219,154,000
40,862,000
3,896,000
58,004,000
37,683,000
3,238,000
68,432,000
31,250,000
1,478,000
65,093,000
20,262,000
1,203,000
65,093,000
9,200,000
5,040,000
49 000
9,200,000
5,040,000
49,000
9,200,000
5,670,000
40,000
9,200,000
6,930,000
94,000
4,418,000
2,320,000
6,349,000
6,780,000
3,180,000
2,640,000
2,742,000
613,000
Totals $400,566,000 $446,734,000 $448,802,000 $325,291,000
Meantime, the Minister of Agriculture, Hon. J. E. Caron,
had made the best of the situation during the year. He was in
close touch with the Agricultural Societies, which numbered 77
with 21,864 members, and the Agricultural Clubs numbering 624
with 58,249 members (1920); these organizations were pros-
perous with a combined income, in 1920, of $700,000, and powers
of co-operation which were valuable to those in charge of agri-
cultural development; in April the first four Demonstration
farms were organized by the Department and others during the
year. In July Mr. Caron sent a letter to all parish priests in the
Province urging them to aid the Government in carrying the
farmers through the current agricultural crises and to counsel
their parishioners not to sacrifice dairy cattle at low prices
because of the feed famine, but to winter them—even though it
proved somewhat costly : "The present crop failure, added to a
falling market, has considerably changed the situation this year.
Fortunately, however, our farmers are in a much better financial
position than ever before and should successfully emerge from
this crisis. At the moment it is easy to predict a heavy loss for
farmers in their hay and cereal crops. The former will scarcely
yield a 50 per cent, harvest, and the cereal crops will suffer in
almost like proportion." He urged avoidance of panic and prom-
ised all possible assistance from the Government ; much was, in
fact, done along co-operative lines.
The Minister's report for the year of June 30, 1921, illus-
trated Provincial conditions, and Mr. Caron dealt with various
efforts to improve methods and increase production — the work
of the Field Crops Service with 16 pure-seed competitions and
136 standing crop competitions ; the success of the new Demon-
stration Farms and the amendment of the Agricultural Merit
Act so as to permit the award of decorations to persons living
in Canada or outside of it who had rendered distinct services to
Agriculture ; the appointment of 9 new District Agronomists,
making the total 55, with a varied record during the year of
2,501 lectures, 4,179 demonstrations, help given to 25,206 home
gardens, 38,613 visits made and 16,836 received, 20,688 pamphlets
distributed and 48,093 letters written; the drought which pre-
vailed during the summer and the successful operation of the
Milk test with its resulting increase in cheese and butter yields ;
the continued increase in numbers of fowl with an estimate of
AGRICULTURE AND INDUSTRY; RESOURCES OF QUEBEC 683
7,000,000 in the Province ; the progress made in Apiculture with
64,417 colonies of Bees and 6,317 bee-keepers.
Other incidents of the year were the promotion and success
of Lady Farmers and Home-makers' Clubs, now totalling 107,
with lectures on homekeeping and physical training of children
to 6,000 syndicated women farmers; the distribution of 50,000
special tracts to farmers and disbursements by the Department
of $1,433,216 during 1920-21— including the Federal grant of
$271,113. It may be added that the Provincial returns of popu-
lation issued in 1921 showed distinct progress in Quebec with a
total of 2,503,548 compared with 2,002,232 in 1911 and 2,286,500
by a Municipal census taken in 1919; the Birth in Quebec con-
tinued to exceed the ratio in any other Province with 83,466
in 1920 compared with 72,492 in Ontario — the Marriages were
21,211 and the Deaths 46,264. It may be noted, in passing, that
Quebec shared in the general and increasing purchase of motor-
cars with a registration of 59,707 as its 1921 total compared with
44,900 in 1920 and 34,987 in 1919.
The United Farmers of Quebec did not acquire a very active
place in the public life of their Province ; it was not until 1921
that the movement was at all in evidence and then chiefly in the
Eastern Townships. Joseph Lambert ran as a Farmer candidate
in the Yamaska Federal bye-election, and while addressing a
meeting in his behalf at St. Elphege, on May 20, A. H. Clement,
President of the U. F. P. Q., made the following political state-
ment as to Mr. Crerar's leadership: "He is only the nominal
leader, because he knows more than others as to the guidance of
a political party. He now directs matters, but none of us is his
blind follower." Mr. Lambert only obtained a small vote. With
the approach of the Federal elections in December, the Agrarians,
however, were stirred up to more definite action and, on Nov.
1st, a Convention of Quebec farmers, numbering 300, met at
Montreal to discuss the advisability of entering the campaign
as a party. It was decided to run 25 candidates under the name
of Independents, and a platform distinct from the other United
Farmers' organizations was adopted; none of the candidates
were elected and the vote polled was small. The platform was as
follows :*
1. The support of International peace by the Canadian Government.
2. In relations with England, the Government to maintain the prin-
ciples laid down at Confederation and to be guided first by Canadian
interests.
3. The Rights of all to be respected, so that Concord may rule — re-
gardless of racial, religious or social conditions.
4. Agriculture, Mines, Forests and Fisheries, with industries based
on the exploitation of these natural resources, to be developed as far
as possible.
5. A Tax to be imposed on Land and other Natural Resources held
for advance in values.
6. A National policy to assure the industrial exploitation of such
natural products as Nickel.
*Note.— Report in Grain Growers' Guide, Winnipeg, Nov. 9, 1921.
684 THE CANADIAN ANNUAL REVIEW
7 A permanent Commission to investigate Industrial affairs and
Foreign Exchange conditions and to establish a basis for Customs fiscal
DollCV
8. The Government to appoint a Technical Commission to administer
the Railways so as to reduce transportation rates and deficits, and to
create a definite Railway policy.
9. The Government to reduce Naval and Military expenditure to a
minimum; to exercise strictest Economy in all administrative branches;
to establish Trade Commissioners abroad so as to find further outlets
for Canadian products.
10. Only desirable Immigrants suitable for the development of the
country to be admitted.
11. The State to compel political organizations to publish the source
of their Election funds before and after Elections, and proprietors of
newspapers to be compelled to publish a list of Shareholders.
12. The repeal of the Conscription law at the next Parliamentary
Session.
This Province was, in 1921, naturally, one of
Nova Scotia: the rich portions of Canada ; actually its develop-
Its Position, ment had been considerable, although not in com-
PolTr^Edu-' Parison with some other parts of the Dominion.
cational The people, during this year, were in a fairly good
System and position, though affected by the depression and
Other In- especially by the condition of the Iron, Steel and
terests. Coal industries. It was a year of mixed crop yields,
and although prices fell sharply and the farmer was
not able to market his products in many cases advantageously,
or even profitably, there were no extremes of need. In the
Annapolis Valley, a rural community devoted mainly to agricul-
ture and horticulture, prosperity was well maintained. The de-
cline in values of farm products was not there reflected in pro-
duction. The Steel industry fell to a low ebb and the Coal pro-
duction was disappointing. The estimated total production of
the Province* in 1921 was as follows:
Coal ... $ 31,200,000
Coke and Bye- Products 3,400,000
Gold and other Minerals 226,400
Gypsum, Limestone, etc 2,500,000
Building Materials and Clay Products . . 2,000,000
Iron and Steel Products 10,100,000
Fisheries 12,600,000
Manufactures, Ships and Feights '. 54,350,000
Products of the Farm 37,903,300
Products of the Forest 10,325,000
Game and Furs 800,000
Grand Total $165,404,700
The failures of the year, as everywhere, were heavy, with a
total of 119 in number, $3,327,832 in Liabilities and $1,286,611
in Assets, as compared with the respective figures of $399,064
and $118,154 in 1920. The agricultural wealth of Nova Scotia
in 1921 was estimated at $185,139,000 by the Federal Bureau of
Statistics; the value of its Field cropsf, in 1921, according to
Federal figures, was $29,556,400, which included $2,897,300 for
*NOTE. — Halifax Chronicle annual Estimate, Jan. 2, 1922.
tNote.— There is nearly always a variation, sometimes a large one, between Federal
and Provincial Statistics.
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 685
Oats, $6,093,000 for Potatoes, $1,528,000 for Turnips, and $17,-
749,000 for Hay and Clover. The reduction in values from 1920
included $1,800,000 in Oats, $4,000,000 in Potatoes, $3,800,000 in
Turnips, etc., $7,000,000 in Hay.
M. Gumming, LL.D., Secretary of Agriculture, in referring to
these conditions in his 1921 Report, stated* that "while the aver-
age production of staple farm products was from 10 to 20 per
cent, less per acre unit than in the preceding year, yet the season
of 1921 will be best remembered as one in which crops yielded
in much heavier quantities than would have been anticipated
under the dry weather conditions which prevailed. One class of
farmers, namely, the fruit growers of the Annapolis Valley, and
adjoining areas, experienced, from almost every standpoint, a
most successful year. Their yield of apples was only exceeded in
the history of the Industry by the phenomenal yield of 1911 and,
fortunately for them, failures in the fruit crops of the major part
of Canada and the United States resulted in well sustained high
prices. The general farmer, on the other hand, while fairly well
satisfied with his harvest, was confronted with a slow-buying,
low-priced market." The number of Horses in the Province
(June 30, 1921) was 61,321 and valued at $6,007,000; the Cattle
numbered 333,292 worth $11,335,000; the Sheep numbered 324,260
worth 1,437,000 and the Swine 52,064 valued at $937,000. The
total reduction in values from 1920 was nearly $15,000,000 with
10 millions in Cattle and 2 millions in Horses as the chief declines.
The Federal Bureau of Statistics — a new compilation in this
case — gave the following facts as to Agriculture in Nova Scotia
during the four years specified — showing also the after-war de-
flation in Prices :
Product
Field Crops
Farm Animals....
Wool
Dairy Products-
Fruits and Vegetables.
Poultry and Eggs.
Fur Farming
Maple Products
Totals...
1918
$42,486,000
1919
$63,357,000
4,654,000
5,074,000
1 055 000
840,000
2,632,000
ibles . .. 3 900 000
3,719,000
3900,000
800000
800000
54,000
54,000
40000
45,000
1920
$47,847,000
4,122,000
554,000
7,077,000
3,900,000
900,000
49,000
45,000
1921
$29,557,000
2,235,000
278,000
7,077,000
3,900,000
1,100,000
58,000
29,000
$55,621,000 $77,789,000 $64,494,000 $44,234,000
Nova Scotia, it may be added, received from the Federal Aid
Act in 1920-21 (Mch. 31) $81,716, with $31,931 of this grant ex-
pended on the Agricultural College at Truro ; the production of
Commercial apples in Nova Scotia was 1,600,000 barrels in 1919
and 1,160,000 in 1920, with values, however, increasing from $9,-
989,680 to $10,931,420; the Fur farms in the Province (1920)
numbered 55, and the value of the fur-bearing animals in stock
was $277,025 — in 1920-21 the value of the pelts produced was
$112,948; the production of Potatoes in 1921 was $7,097,000, or
more than $3,000,000 reduction from 1920f ; the total imports of
the Province (Mch. 31, 1921) were $38,823,401, and the Exports
*Note.— Report presented to House Apr. 20, 1922.
tNote.— Provincial Official Statistics.
686 THE CANADIAN ANNUAL REVIEW
$65,583,970; Building figures for 1921 are not available, but the
value of work done in 1920 was $8,913,416 on a capital invest-
ment of $4,372,486; the Fisheries product of the same year was
$2,429,270.
The industrial condition of Nova Scotia depended, to a great
degree, on the prosperity and production of the Steel Com-
panies. Hence the importance to this Province of the merger
of the Dominion Steel Corporation, Ltd., the N. S. Steel and
Coal Co., Ltd., and the Halifax Shipyards, Ltd., under the name
of the British Empire Steel Corporation, Ltd., which was under
way in 1920 and was completed in 1921 ; hence, too, the import-
ance of the attacks and criticisms made in this connection and
which found place in part of the press, in Parliament and in the
Nova Scotia Legislature.
The Merger involved lands, buildings and properties of
$150,956,605 less depreciation reserves of $20,000,000; Current
Assets of $34,375,999 and total Assets of $168,736,283 ; a capital
stock liability of $101,750,000 less deductions of $7,965,000. The
Surplus of the constituent Companies was stated at $26,310,154.
Ratification of the Merger was given on Apr. 7th by the Do-
minion Steel and the N. S. Steel Companies. In June, A. S. Mc-
Neill was appointed Superintendent of Mines, and in July, G. D.
McDougall became Chief Engineer of the British Empire Steel
with Arch. McColl as General Manager of the N. S. Steel and
Coal. At the close of the year a reduction in wages was an-
nounced, which the men for a time refused to accept. The latest
Industrial statistics of the Federal Bureau show that in 1919
there were 1,032 establishments in Nova Scotia with a capital
of $51,866,821, 16,541 employees, and $73,811,822 of products;
the three chief industries were (1) rolling mills and steel furn-
aces with $20,399,234 capital and $31,362,000 production, (2)
Ship-building and repairs with $6,732,419 capital and $7,663,072
production, and (3) Electric light and power with $4,834,368
capital and $1,637,130 production. By 1921 there was a great
reduction in ship building.
The output of coal in Nova Scotia was 5,580,722 tons (Fed-
eral figures) compared with 5,725,000 in 1920, and an interesting
fact was that the shipment of coal from Nova Scotia to the St.
Lawrence ports in the season of 1921 totalled about 1,100,000
tons, which included coal carried by the Canadian National Rail-
ways in the Government's own vessels. All of this came from
the mines of the British Empire Steel Corporation, and included
not only cargoes from the Sydney collieries, but coal from the
Acadia and Springhill collieries on the mainland, while two car-
loads went by water as far as Toronto; the annual shipments
of Nova Scotia coal up the St. Lawrence in pre-war years, had
ranged from 1,750,000 to 2,000,000 tons, and there was every
reason to hope for better future results if Canada realized the
importance of a National coal policy. The total value of Nova
Scotian Mineral production in 1921 was $32,500,000, and this
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 687
placed it third amongst the Mineral Provinces of Canada. In
this connection the Hon. E. H. Armstrong, Commissioner of
Mines, summarized Nova Scotia's advantages as follows: (1)
an abundant supply of coal; (2) an exceptional geographical
position on the Atlantic seaboard; (3) shipping facilities and op-
portunities of access to the populous centres of the world for
export; (4) remoteness from other sources of supply; (5) thick-
ness and regularity of the coal seams ; (6) good quality of coal
for steam gas, metallurgical and general purposes; (7) richness
of by-products and practical freedom from gas; (8) ample iron
deposits and an abundant supply of limestone.
Nova Scotia was the second of the Provinces in its Fish-
eries— both resources and product. The estimated total in 1921
was $10,250,000, compared with $12,742,659 in 1920 and $49,000,-
000 for the Dominion in the latter year. Production was greatly
curtailed during the first 8 months, largely because of the low
prices prevailing for catches. In many districts operations were
almost wholly suspended, and the fishermen, whenever possible,
engaged in other occupations. Dealers ceased buying. Cape
Breton and Guysboro were the hardest hit, with the result that
the landings by the handline fishermen were small. Shelburne
and Queens were the most favourably situated during the sum-
mer season. The lobster fishery was the one bright spot and
the regular season of three months from Mch. 1st was the most
profitable in the history of the industry, though the total catch
was less than in 1920 by 13,000 cases. M. H. Nickerson, ex-
M.L.A., was appointed in 1921 to investigate and report upon
Provincial Fisheries, and he had issued a preliminary statement
as to 1920 conditions on May 28; they were very prosperous in
that year with a large catch.
Administration and Legislation of 1921. Mr. MacCallum
Grant, LL.D., D.C.I,., the popular Lieut.-Governor of the Province,
completed his 5-year term in December and received various
compliments upon his public and social work and, especially, his
War services. The Hon. George Henry Murray, K.C., LL.D.,
Prime Minister of Nova Scotia, celebrated, on July 20, the 25th
anniversary of his appointment in 1896; his health was not very
good, and there were rumours of a possible retirement from
office ; his popularity in the Legislature and in the Province was
quite exceptional and more in the nature of personal regard than
the usual political loyalty. On May 23rd the Legislature passed
a unanimous Resolution regarding this event. It was presented
in the old Assembly Chamber where for a century the laws of
the Province had been made, the battles for responsible govern-
ment fought, the traditions of a loyal people preserved and the
lamp of British institutions kept alight. R. H. Graham (Lib.)
of New Glasgow was the mover and D. C. MacKenzie (Cons.)
of Cumberland was the seconder of a long Resolution describ-
ing this "unique event" and recording its congratulations in the
House Journals as to Mr. Murray's "lengthy, untiring and un-
688 THE CANADIAN ANNUAL REVIEW
selfish public service" ; urging upon the Government some tang-
ible recognition of this service. Other speakers were J. B.
Douglas, Hon. R. M. MacGregor, C. W. Anderson, Hon. E. H.
Armstrong, Howard Corning, Hon. R. E. Finn.
The speeches paid high tribute to Mr. Murray, his char-
acter, his reputation for honour and integrity, his courtesy, good
humour and kindliness; Mr. Graham stated that he had twice
declined the honour of Knighthood ; others dealt with his special
devotion to Nova Scotia and its interests. Following the pass-
ing of the Resolution, the acting Leader of the Government,
Hon. E. H. Armstrong, introduced a Bill providing for a retiring
allowance of $5,000 annually, which was the continuance of the
salary Mr.Murray had received as Premier; this annuity was
only to come into force if and when he retired from office. The
measure was received with cheers and passed through its var-
ious stages without opposition. After passing the Council the
Resolution was presented to the Prime Minister with much cere-
mony— the Hon. W. S. Fielding coming from Ottawa to greet
his successor (1896) in office at Halifax. Cables and telegrams
of congratulation were received from H.R.H. the Duke of Con-
naught, Mr. Lloyd George, Rt. Hon. Arthur Meighen, Mr. Mac-
kenzie King, Lieut.-Gen. J. C. Smuts, Premier of South Africa,
Rt. Hon. W. F. Massey, Premier of New Zealand, Sir Lomer
Gouin of Quebec, and many others. On July 24, following, the
jiew French Consular Agent in Nova Scotia, Emile Gaboury,
presented to Mr. Murray on behalf of the Government of France,
and in recognition of his War services, the Decoration of La
Reconnaisance Francaise. The official reasons given were the
Premier's aid to local mobilization and recruiting during the
War, his support in the despatch of food supplies, etc., to the
devastated War areas, his Red Cross and Patriotic Fund ser-
vices. Mr. Murray was already a Grand Commander of the
Crown of Belgium.
The only changes in the Government during this year were
the appointments, in May, as Ministers without Portfolio, of
James Cranswick Tory of Halifax and Montreal, M.L.A. since
1911, and General Manager of Agencies in the Sun Life Assur-
ance Co. ; Daniel Alexander Cameron, K.C., of Sydney and M.L.A.
in 1916-20 — with appointment, also, to the Legislative Council in
place of Hon. H. C. LeVatte, resigned ; Joseph William Comeau,
CX-MX.A. of Comeauville, Digby. An important matter of the
year, which was carried forward from 1920, was the Enquiry into
Provincial Highways and their administration. The issue was
rather prominent because the Good Roads movement was active
in Nova Scotia ; the Provincial Association, at its Halifax meet-
ing on Mch. 31, was representative of the Province in urging
action ; the roads in Cape Breton were said to be in a wretched
condition. Under R. H. Murray, President, a large Delegation
waited upon the Government and tendered recommendations as
follows :
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 689
1. That the Highways of this Province be administered by a Com-
mission consisting of a Cabinet Minister, a Business man, and an Engi-
neer who should give their whole time to the work of the Board.
2. That the Government take up the matter of uniform assessment
throughout the Province on a basis of actual cash value; and that a
Municipal Department of Government be established to deal with assess-
ment and other municipal affairs.
3. That a complete system of patrols for the Highways of this Prov-
ince be immediately organized.
4. That means be taken for the enforcement of the provisions of
the Highway law providing penalties for injury and trespass of high-
ways.
5. That wide tire regulations be enacted with a more equitable dis-
tribution of money to be expended on roads.
Meantime, the Royal Commission which was investigating
Highway matters — Hon. H. Mellish of the Supreme Court,
County Court Judge Allan MacDonald and F. W. W. Doane,
C.E., Halifax — and which had adjourned late in 1920, met on Jan.
18 and resumed the Enquiry. Hon. A. K. Maclean, K.C., was
Counsel for the Provincial Government, C. H. Cahan, K.C., for
the Opposition in the Legislature, and J. M. Stewart for the
Highways Board. Various engineers and officials of the Board
were examined at this and succeeding sessions, including J. K.
Kellaher, former Secretary; Hon. H. H. Wickwire, Minister of
Highways appeared on Feb. 8 and testified as to his duties and
work and his relations with the Board and its operations.
The matters under way and involving a yearly expenditure
of $4,000,000, were described as follows: (1) Federal Aid pro-
jects by contract with Dominion Government whereby the
Province was to receive approximately $300,000 per year ; 40 per
cent, of expenditure to be made on certain roads under accept-
able specifications by Federal authorities ; (2) a borrowing Bill
providing necessary Provincial means for five years to build
such roads; (3) roads on which $1,500 per mile was to be ex-
pended at the rate of 500 miles a year ; (4) machinery purchases
for which money was to be borrowed and, as well, the ordinary
maintenance account, together with the town and municipal
taxes which were to be spent in County of origin.
Percy C. Black, one of the resigned Commissioners, also
testified, with G. K. Addie, an Engineer, and others. The Counsel
addressed the Royal Commission on Feb. 18. Mr. Maclean
argued that the late Board was responsible in all the matters
complained of and absolved Mr. Wickwire of all blame ; Mr.
Cahan made the Minister responsible first and the Board second;
Mr. MacG. Stewart held the Engineers chiefly to blame. The
Report was unanimous and was made public on Apr. 4, after the
Commission had sat 40 days and heard 50 witnesses. Briefly
summarized, the conclusions were as follows:
1. The Minister of Highways was exonerated from responsibility and
blame : "We think that the Minister was entitled to rely largely on the
Board, composed as it was, in a large measure at least, of gentlemen of
great ability and wide practical business experience, x x x We can-
not fird that the Minister was in any way -responsible for the awarding
23
690 THE CANADIAN ANNUAL REVIEW
of contracts without the approval of the Board, x x x We do not
think it established that the Minister should be held responsible for the
acts or omissions of the Chairman of the Board."
2. The Highways Board, as such, was not censured : "We are much
impressed with the contentions made by Counsel on behalf of the Board
as such. The Minutes of that body, as well as the evidence herein,
would indicate that it has done a great deal of good public service."
3. Individuals were censured severely. W. G. Clarke, former Chair-
man of the Highways Board, was described as not only remiss in his
statutory duty as such, but as actively promoting antagonism between
the Minister and Board; F. W. Clark, former Assistant Chief Engineer,
and in charge of construction in the field, was declared the main cause
of the difficulties which arose and as having wholly failed in his duty
with evidence that it was his intention that work from the outset should
be carried on in the interests of the contractors; J. W. Roland, Chief
Engineer, was said to have had too much work and responsibility placed
upon him, but his honesty, truthfulness and capacity as an engineer were
not questioned.
4. The purchase of machinery was stated to have been made at a
proper price and was reasonably necessary, with no evidence of dis-
honesty on the part of any Minister, official or employee of the Govern-
ment or Highways Board.
5. The Imperoyal Road was declared to have been commenced
without proper authority, but the Chairman of the Board had given his
assent for the acceptance of the contractors' tender.
6. The contractors were described as over-paid, with the opinion
that responsibility for over-payment should not be thrown on the Min-
ister or the Provincial Auditor; the Commission was not satisfied that
evidence had not been wilfully held from their consideration in the in-
terests of the contractors.
7. The quantities of material removed from the St. Margaret's Bay
Road and the Port Joli-Sable River Road, as reported in the progress
estimates, were greatly in excess of the actual quantities, with F. M.
Clark described as responsible.
On Apr. 8 the resignations of Lieut.-Col. Thomas Cantley,
Percy C. Black, Major Walter Crowe, K.C., and J. K. Kellaher, as
members of the Highways Board, were finally accepted by the
Government; W. A. Hendry, Chief Engineer, and R. W. Mc-
Cullough, C.E., were appointed members of the Board to act with
the previously appointed Chairman, A. S. Macmillan. Active
work followed throughout the Province, and in August 1,000
miles of highway were under construction; in addition to other
funds $700,000 had been allotted, in May, from the Provincial
Loan to Municipalities. On Nov. 17 the new Highway bridge
connecting Annapolis and Granville was officially opened by the
Hon. Mr. Wickwire, Provincial Minister of Highways; the
Bridge, costing $317,000, was 2,273 feet in length and the longest
in the Province. A. S. Macmillan, Chairman of the Board, claim-
ed that Nova Scotia now had better roads than New England
and more bridges than any Province in Canada.
By the close of the year the 1920 expenditures of $3,839,000
had been more than duplicated and were about $4,000,000; it
was pointed out that no single manufacturing industry in Nova
Scotia, not even excepting the great Steel plant at Sydney, em-
ployed as many men as were employed by the Highways Board
and their contractors, in reconstructing the roads during the
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 691
year. The problem was a large one, because there were 15,000
miles of highway in Nova Scotia with not only construction to
handle but maintenance as well; to keep up all these roads, to
improve them and to make a complete system adequate for
modern transportation requirements, there were less than half
a million people.
Another problem of the year was that of Hydro Power de-
velopment. The 1st Report of the N. S. Power Commission
(Hon. E. H. Armstrong, Chairman, with R. H. MacKay and F. C.
Whitman) was issued in February, 1921, and covered the period
since Aug. 25, 1919. It mentioned estimates of the dependable
supply of water-power in the Province for Hydro-Electric pur-
poses at 300,000 h.-p. with current developments of about 26,000
h.-p. ; described the importance of the use of Electric power to
industry, labour, trade and public utilities ; stated that numerous
applications for power had been received and that the Commis-
sioners or their Engineers had visited many points in the Prov-
ince. The St. Margaret's Bay development was described as the
most important undertaking in hand. Primarily intended to
supply the City of Halifax, the initial installation was of 10,700
h.-p., with expected delivery in Halifax of about 20,000,000 kilo-
watt hours per annum, and an ultimate installation of about 15,-
000 h.-p., delivering 30,000,000 kilowatt-hours in Halifax.
This plan had from the first created much discussion ; it was
thought obvious that the demand existed, that possibilities of
real benefit were undeveloped, but reasonably clear, that local
rates and prices could be reduced in Halifax and that the capital
cost would require Government co-operation. A special Report
was obtained from C. H. and P. H. Mitchell, Civil Engineers of
Toronto, and construction finally undertaken. Other places
where power operations had been investigated or facilitated, in-
cluded Canning and Bridgetown and Lunenburg, the Bear River
pulp and paper interests of Clarke Bros., Ltd., the East River and
Sheet Harbour requirements, and the Mushamush River matter
and Lunenburg. The 2nd annual Report (Sept. 30, 1921) show-
ed an actual expenditure up to date of $1,560,382, of which $1,-
510,662 was spent on the St. Margaret's Bay System and the
Mushamush System — the latter a project under which the plant
at Mahone was to be enlarged from its privately developed 350
h.-p. supply to 1,000 h.-p. or more, to take care of the needs of
Mahone, Lunenburg, Riverport and Bridgewater, at a cost of
$65,000, for which 30-year debentures were issued, with a further
expenditure necessary of $70,000 for line extensions, and addi-
tional machinery.
Over the Margaret Bay affair many conferences had been
held with representatives of Halifax, but no actual decision as to
supply of power to the City arrived at owing to keen local con-
troversies; a proposed contract with the Commission remained
unsigned and unaccepted by the City at the close of the year.
Meantime, operations had been carried on steadily by the Com-
692 THE CANADIAN ANNUAL REVIEW
mission and it was estimated at the close of 1921 that about
8,500 h.-p. was available to the City of Halifax, from a point only
15 miles distant. The plant included two main power dams,
with a head of 250 feet of water, and two main storage dams with
capacities sufficient to supply water for five months or more.
It was proposed to sell this power to the City on a cost basis
which would return the Commission's capital expenditure in 30
years, and would permit delivery of power to consumers at a
cost of from $25 to $30 per horse power. Other applications
and projects were received and under consideration or being
practically initiated; at the same time, close co-operation had
been established with the Water Power Branch of the Dominion
Department of the Interior, and K. H. Smith, Chief Engineer of
the N. S. Power Commission, estimated, in December, that about
34,000 h.-p. of 'Hydro-power had already been installed in the
Province as an aid to cheaper manufacturing.
The matter of the contract with Halifax was one of much
controversy. Signed by the Commission, it had not been accept-
ed, and the issue lay between two propositions. The first was
that under which the Commission would deliver to the N. S.
Tramways and Power Co. electrical energy up to 18 million kilo-
watt hours per year at cost price and the Company was to dis-
tribute the current to consumers in Halifax at rates which would
be determined by the Board of Public Utilities of the Province —
the contract to run for 30 years. The other plan was that the
City itself should buy and distribute to all consumers the power
as delivered to the North- West Arm by the Commission. The
issue was fought out month after month without result; in-
cidentally the old Halifax Power Co., which initiated the de-
velopment work now completed by the Power Commission, was
claiming $500,000 damages from the Commission. In March the
Government appointed a Special Commission to enquire into the
relations of Halifax with the N. S. Tramways and Power Co. ;
A. J. Campbell, K.C., was Chairman, and nominated by the Chief
Justice of Nova Scotia; R. McColl was nominated by the City
and T. Sherman Rogers, K.C., by the Company.
Meantime, in the City Council, the fight was waged bitterly
between the advocates of public ownership and distribution of
the power and those in favour of private control, as represented
by the Contract and the Tramways Company — with the latter
people accorded the usual designations of "big interests," grasp-
ing monopolists, and selfish manipulators of a public utility.
The Halifax Herald took the latter view and opposed the contract
with vigour. The N. S. Tramways had an expert investigate the
whole Power situation from their standpoint ; the opponents of
the Contract, in June, appealed to Sir Adam Beck and sent J. J.
Jeffrey, a consuling Engineer, to Toronto, to enquire into condi-
tions from the public ownership viewpoint ; various conferences
followed between Government, City, Tramways and Commis-
sion; the Power Commission was willing to discuss any prac-
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 693
ticable plan acceptable to the City, and Hon. Mr. Armstrong
(June 25) declared that under the Contract he saw no reason
why, at the end of 30 years, when the City, under a service-at-
cost plan, would have paid the total cost, including capital
charges of all kinds, the City should not own the development
outright.
P. R. Colpitt, City Electrician, declared (June 29) that, by
themselves utilizing the Hydro power generated at St. Margaret's
Bay, the citizens of Halifax could have a modern street-lighting
system at a cost of $12,500 a year instead of the unsatisfactory
one for which the Tram Company was charging the citizens
$30,000 a year. On July 14 the Power Commission, in reply to
certain questions asked by the City Council and which, it
pointed out in a long communication, had already been answered,
reviewed the whole situation in a most fair and dignified form.
On Aug. 6 the Commission asked the City for an early and defi-
nite decision as to taking power from the Commission or other-
wise ; on the 18th a Majority Report of a Civic Committee re-
ported in favour of the Commission selling direct to the Tram-
ways Co. and a Minority Report proposed that the City take
over the power ; by 9 to 8 votes, on the 19th, the City Council
decided to purchase the power direct from the Commission, and
on Sept. 2nd a motion for reconsideration was defeated by 10
to 6 ; Alderman J. W.Regan was a leader against the Civic power
idea and he urged, on Nov. 10, in a letter to the Mayor, that any
Contract between the City and the Commission should contain a
definite price for the power and a Provincial Government en-
dorsement of the Commission's guarantee.
On Nov. 16 the Council changed completely around and de-
cided, by a vote of 10 to 8, to refer the Hydro Electric matter
back to a Special Committee, with instructions to negotiate with
the Tramways Company and to ascertain on what terms the
Company would distribute the power from St. Margaret's Bay,
and, also, to resume negotiations with the Power Commission;
this Committee continued what seemed to be an indefinite dis-
cussion of the proposals and a third proposed Contract which
now was before it. No settlement was arrived at. By the close
of the year the Tramways Company was showing a distinct im-
provement in business. Net earnings for the 12 months ended
Dec. 31, amounted to $181,638, against $87,629 for the year 1920;
they only fell short of interest requirements by about $800,
whereas in the previous year there was a deficit of $84,000.
Temperance matters saw the usual discussions with varied
convictions for bootlegging and similar offences. As a result
of the Plebiscite of November, 1920, the Province, on Feb. 1st,
had become "bone-dry" with the sale of liquor prohibited except
by the Government for medical, scientific and industrial pur-
poses. In the Halifax Police Court, on Feb. 6, fines to the amount
of $2,400 were imposed on five defendants convicted of violation
of the Nova Scotia Temperance Act, and of wholesale boot-
694 THE CANADIAN ANNUAL REVIEW
legging, with $25.00 asked for a gallon of rum. On Mch. 21 the
Board of Vendors' Commissioners of Nova Scotia was appoint-
ed to consist of Wm. R. Wakely and Clifford P. Wood, Halifax,
and Arthur Proudfoot, Hopewell — with Mr. Wakeley as Chair-
man.
A Cape Breton delegation told the Government, on July 19,
that there was an organized liquor ring in Sydney and vicinity
which required a competent official to cope with their illicit
traffic, and that the condition of affairs in the mining towns, as
to enforcement of the Temperance Act, was desperate and de-
manded remedies out of the ordinary; they asked for the ap-
pointment of George Rideout, as Municipal Inspector; but as
Hon. Mr. Murray pointed out, the City Council of Sydney had
turned him down and enforcement was a municipal affair. At
Gabarus Bay, near Sydney, on Oct. 11, a long-suspected rami-
fication of the North Atlantic liquor smuggling trade was un-
covered at midnight by Capt. Bragg of the Revenue cutter Rest-
less, and he, almost single-handed, surprised and captured the
American schooner Vagrant with $15,000 worth of liquor on
board. On Nov. 22nd 650 gallons of choice French wines, valued
at over $16,000, were the prize for which smugglers and revenue
officers engaged in a pitched battle on the beach at Mainadieu,
50 miles from Sydney ; eventually the smugglers were overcome
and their schooner captured. It may be added that the 1920 Re-
port as to the operation of the N. S. Temperance Act showed
Official vendors in Halifax, Sydney, Amherst, Glace Bay and
nine other places with $288,463 worth of sales reported.
The usual Government reports were issued in 1921 dealing
with the affairs of the previous year. Hon. G. H. Murray, Prime
Minister and Provincial Secretary, reported through M. Cum-
ming, B.A., B.S.A., U,.D., Secretary of Agriculture, as to that in-
terest and the matter of incorporated Companies, with various
fees and statistics, was dealt with through A. S. Barnstead,
Deputy Provincial Secretary. The Department of Public Health
and inspection of Rural Telephones ; the work of the Secretary
of Industries and Immigration (W. B. MacCoy, K.C.) and the
annual Statement of the Agent-General for Nova Scotia — John
Howard; the Game Commissioners' Report and those on Vital
Statistics and the N. S. Temperance Act operation; the Public
Utilities Board and the Workmen's Compensation Board were
all dealt with under Mr. Murray's jurisdiction.
The Hon. O. T. Daniels, Attorney-General and Commissioner
of Crown Lands, reported as to the latter subject and regarding
Neglected and Delinquent Children. The Hon. E. H. Armstrong,
Commissioner of Public Works and Mines and King's Printer,
dealt with these subjects and Factory inspection, with, also, the
Nova Scotia Hospital, the N. S. Sanatorium and the Victoria
General Hospital and other Humane Institutions. The Pro-
vincial figures of Mines in 1921, as given by Hon. Mr. Arm-
strong, Minister, for the year of Sept. 30, showed a Coal output
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 695
of 5,373,230 long tons with 12,276 men employed in the Col-
lieries; 1,860,671 tons were distributed in Nova Scotia — a de-
crease of 584,524 tons — 8,444 tons were shipped to the United
States, as against 24,439 tons in 1920; 903,136 tons were shipped
to St. Lawrence markets, compared with 240,071 tons in the
previous year. Gold production was still further reduced to an
almost vanishing point, while Bricks produced numbered 11,-
993,790; the drain-pipe and tile totalled 826,253 lineal feet, Ben-
zol was 389,499 Imperial gallons, and Tar 3,618,400 gallons;
Pig-iron product totalled 158,611 short tons, Steel ingots 203,662
and Coke 233,799 tons. The revenue from licenses, royalties,
rentals, leases, etc., was $635,577.
The Report of the Board of Commissioners of Public Utili-
ties—John U. Ross, R. T. Macllreith and P. R. Colpitt— for
the year of Dec. 31, 1921, showed 355 Public Utilities reporting
to the Board as against 298 in 1920— the former including 262
Telephone, 51 Electric Energy, 36 Water, 5 Tramway and I Gas
Services. During the year the Board, "feeling itself unable to
deal satisfactorily with either the rates or security issues" of
the N. S. Tramways and Power Co., Ltd., in the absence of
definite information as to value of equipment, etc., issued an
order directing a special valuation and appointed Jackson &
Moreland, Engineers, of Boston, with W. B. McKenzie, C.E., of
Moncton, to make the enquiry. Many and varied applications
were made to the Board, including 9 dealing with the issue of
securities, and the result was a volume filled with the decisions
made — Special hearings being given at 24 centres.
The N. S. Workmen's Compensation Board reported for
1921 to Hon. Mr. Murray by the Commissioners — V. J. Paton,
Chairman, F. W. Armstrong, Vice-Chairman, and John T. Joy.
The Report showed 5,326 accidents, of which 48 were fatal with
131 resulting in permanent disability ; the total number compar-
ed with 8,254 in 1920, 6,459 in 1919, 7,665 in 1918 and 7,175 in
1917. Those subject to compensation were estimated at 4,400
for 1921 with a cost of $945,689, compared with 6,143 in 1920 at
a cost of $1,372,983. The causes of the decrease were (1) wages
of $53,000,000 paid instead of the $73,000,000 of 1920; (2) fewer
employees and more experienced ones available or retained;
(3) the safety work done by the N. S. Accident Prevention As-
sociation and by several large Corporations. The total assess-
ment made upon employers in 1921 was $1,092,267, but with a
surplus of $538,011 in 1920 and a good accident record in 1921,
the actual amount would be much less when final adjustments
were made. The Income was $1,381,092, and the Expenditure
$945,689, with provisional balances of $435,402. On Dec. 31,
1921, the Board had investments of $3,620,581, which were held
for Pension reserves, disaster reserves, and interest.
In April, 1921, there appeared the Report of the Commis-
sion appointed in 1919 to enquire into Mothers' Pensions or
allowances and advise, if possible, as to a practicable scheme
696 THE CANADIAN ANNUAL REVIEW
for the Province — John McKeen (Chairman), Jane B. Wisdom,
Ernest H. Blois and A. T. MacKay, Secretary. It reported a
large amount of literature on the subject with special aid from
the Children's Bureau of the Labour Department at Washing-
ton and a Report by W. A. Riddell of the Ontario Department :
"After a careful study of all available information, your Com-
missioners find that the system of granting governmental aid
to indigent mothers with young children, deprived of a father's
support, is universally approved, and already in 5 Canadian
Provinces (viz.: Manitoba, Alberta, Saskatchewan, British Col-
umbia and Ontario), a system is in operation as well as in 39
States of the American Union and in the Territories of Alaska
and Hawaii. Of the remaining 9 States, Bills have been under
consideration in at least five. Outside of America, Denmark
and New Zealand have notable examples of successful legisla-
tion of this nature." It was added that "with considerable
variation in application and administration, the basic principle
has been found to be the conservation of child life, as a matter
of public concern, rather than sentiment or benvolence in regard
to the mother deprived of a bread winner. Without recognition
of this principle as fundamental, it would seem that any scheme
is likely to prove inconsistent with sound public policy." The
chief recommendations were as follows :
1. The mother must in every respect be a suitable guardian for her
children; the children must be in the immediate care of their mothers.
2. Allowances to be paid only when the children are under the age
of 16 years.
3. Payments only to families of British subjects ; the mother and
children to be resident in Nova Scotia at the time of the death or total
disability of the father; the mother actually resident in Nova Scotia at
the time of application for such allowances, and for a period of not less
than two years immediately previous; continued residence in Nova
Scotia of the mother and children while in receipt of such allowance.
4. The Act to be administered by a Minister of the Crown assisted
by an Advisory Commission of not less than 5 members of whom 2
should be women.
*?• The maximum amount of any allowance to be $60.00 per month.
6. The beneficiaries of such allowance to include widows with (a)
!i™0u(?rJmcTe ch.ijdren' 0>) one child; the wife of a man who is totally
disabled; the wife of a man who is the inmate of an insane asylum or
under sentence in a penitentiary; the wife of a man who has deserted
his tamily; unmarried mothers.
The average cost per family was estimated at $35.00, and
the sum of $150,000 as being sufficient to initiate the scheme in
Nova Scotia. Incidents of the year included an Interim Report
reviewing the work of the Halifax Relief Commission for 1921,
wo Y Mn Justice T- Sherman Rogers, Chairman, and Judge
W. B. Wallace, Vice-Chairman; the report covered the various
activities of the Commission with respect to pensions, rehousing
and the great restoration and reconstruction work carried out
m the devastated district. As a result of the 1918 catastrophe
yu) persons were still drawing pensions or allowances and of
these 200 were widows and 425 children ; there were 70 cases of
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 697
general disability and 140 of eye injury with 28 cases of total
blindness; in the 4 years since the disaster $1,000,000 had been
expended and the Pension Fund, now required and available,
was $2,500,000; the progress of reconstruction and re-building
of streets in Halifax had latterly been slow on account of the
cost of labour ; in view of Pension requirements this, now, could
only be done as an investment.
In Halifax, during October, Sir Richard Squires, Premier
of Newfoundland, pledged a grant of $5,000 to the local School
for the Blind; on July 14 one of the finest statues erected in
Nova Scotia in memory of men killed in the Great War was un-
veiled at Middle Musquodoboit ; at Bridgetown (Nov. 17) the
big Highway Bridge connecting Annapolis and Granville was
officially opened by Hon. H. H. Wickwire, Minister of High-
ways, who stated that the bridge was 2,273 feet in length and
had cost $317-,000; the Report of the Public Health Department,
in December, 1921, pointed out that the Province's death rate
was usually from 14 to 16 per 1,000 of population, compared
with Ontario's rate of about 12 or lower and other Provinces
with about half of Nova Scotia's rate, and stated that 40 per
cent, of the Nova Scotian death rate was due to preventable
diseases — whooping cough killing an average of 70 persons a
year ; the annual meeting of the Nova Scotia Liberal Association
elected Henry G. Bauld, M.L.A., as President.
The following Government appointments were made during
the year: Sheriff of the County of Yarmouth, Harry K. Lewis
of Yarmouth ; King's Counsel, Rene W. E. Landry of Yarmouth
and Colin MacKenzie of Sydney; Accountant-General of Su-
preme Court, William A. Major of Halifax; Member of the Pro-
vincial Medical Board, Dr. E. E. Bissett; Member of the Ad-
visory Board of Education, W. A. Creelman of Sydney; Com-
missioner of Forests and Game, James A. Knight, K.C., of Hali-
fax. M. K. Ellis was elected President of the N. S. Fruit Grow-
ers' Association, and W. J. O'Hearn, K.C., President of the N. S.
Barristers' Society. Other incidents were the opening, on Jan.
19, of the handsome and well-equipped Hospital for the Insane
built at Stellarton for Pictou County by a local Commission
headed by James A. Fraser, and the sale by the N.B. Fraser Pulp
and Lumber Co. of 50,000 acres of Timber land in Digby and
Yarmouth Counties to the Nova Scotia Timberland Co., Ltd.,
with a capital of $500,000.
The Nova Scotian Legislature; The Budget of 1921. The
1st Session of the 37th General Assembly of Nova Scotia was
opened by MacCallum Grant, Lieut. -Governor, on Mch. 9, with
a Speech from the Throne which first referred to this as a year
marking the 300th anniversary of the grant by King James I of
the Charter of Nova Scotia, and stated that the Government
would place a Memorial Tablet at Annapolis Royal, the ancient
capital of the Province. His Honour then referred to the ques-
tion of combined action by the Maritime Provinces in respect
698 THE CANADIAN ANNUAL REVIEW
to more equitable financial arrangements with the Dominion;
stated that despite the world depression the Province was en-
joying a fair measure of prosperity, but that any "curtailment
of production in the coal, iron and steel industries resulting
from these conditions would seriously affect every line of ac-
tivity in the Province"; reviewed conditions during 1920 in
Mining, Agriculture, Fishing and Lumber; described the im-
proving situation in respect to Education with an "increased
number of schools in operation, larger enrollment of pupils,
better attendance at school and a general increase in teachers'
salaries."
The Lieut. -Governor also eulogized the Technical College
and expressed gratification at Federal aid and co-operation ; re-
ferred to the initiation of a forward programme in respect to
Public Health as effecting, it was hoped, a material reduction in
preventable diseases and a corresponding saving of life ; dealt
with the progress made in St. Margaret's Bay power develop-
ments and anticipated that this development would soon be so
far completed as to enable the Commission to deliver in the
City of Halifax electrical power upon very advantageous terms,
while the Commission had, also, rendered valuable assistance to
a number of municipalities desirous of securing a further supply
of electrical energy; expressed pleasure at co-operating with
Ottawa along Immigration lines and stated that under the terms
of the Housing Act six municipalities had availed themselves
of the loans provided for the erection of dwelling-houses, to an
amount of over $600,000; mentioned the opening of 4 Employ-
ment offices under agreement with the Ottawa Department of
Labour.
The Address was moved by J. W. Macdonald of Pictou
and A. D. Burris of Halifax and passed, in due course, without
division. In the Legislative Council the Address was moved by
Hon. C. P. Chisholm and Hon. H. C. V. Le Vatte and passed
without division; Henry S. Le Blanc and Simon Joyce were
sworn in as Members of the Legislative Council. The House,
as it stood during this Session and following the Elections of
1920, contained 28 Liberals, 6 Farmer members, 5 representa-
tives of Labour and 2 Conservatives; the Government, there-
fore, had an assured position. Robert Irwin, Shelburne, was
elected Speaker and Howard E. Corning, one of the two Con-
servatives, acted as Leader of that party.
Incidents of the Session included a largely signed Petition
presented by Hon. Mr. Daniels from the people of Bear River
and vicinity, asking for immediate development of the water-
power resources of that part of Western Nova Scotia; the
statement by the Halifax Chronicle (Lib.) on Apr. 22, that "the
Labour group scarcely seem to have realized, as yet, the fact
that the Provincial Assembly is not a meeting of Union dele-
gates, which can proceed by resolution, without regard to ante-
cedents or consequences, but a highly important law-making
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 699
body" ; the debate on the Highway enquiry, which took place
on May 18, with an elaborate speech from Hon. Mr. Wickwire
and a declaration that "the Highway programme had not broken
down, despite the high-handed action of the Highway Board,
and despite the fact that they had thrown a wrench into the
machinery"; the defeat of a measure allowing the sale of Beer
and one proposing an 8-hour day; the passage of a long Reso-
lution as to Freight rates which re-capitulated the history of
the Intercolonial and specified Canadian and Imperial Govern-
ment guarantees as to not demanding any return on capital for
its construction.
It was then stated that there had, within the past few years,
been heavy annual deficits in the maintenance and operation of
the System ; that, because of such deficits, freight and passenger
rates on the Canadian Government Railways — including the
I. C. R. and its branches — had been so greatly increased as to
militate against access to the markets of the West upon condi-
tions favourable to the natural products and manufacturers of
the Maritime Provinces : "Faithful observance of the terms and
conditions of the compact of Confederation and a generous Na-
tional spirit require that the convenience, accommodation and
welfare of the people and of the industrial interest of the Mari-
time Provinces be steadily kept in view as the primary purpose
to be achieved in the administration of the Intercolonial Rail-
way." Legislation of the Session included a Bill to regulate
the practice of Optometry and provision for the establishment
of a Government Purchasing Bureau which, it was hoped, would
ensure greater efficiency and economy in the supplies purchased
for Departments and institutions; there was, also, an Act to
provide for the Municipal establishment of Prison Farms. The
Hon. O. T. Daniels carried a Bill consisting of a number of
amendments to the Nova Scotia Temperance Act — the main
purpose being to straighten out a number of clauses of the Act
as it stood. But it was a greatly changed measure when it
passed out of the House with every clause giving the slightest
or fancied loophole for increased facilities in drinking, elimin-
ated— the most notable being the proposals to increase the
amount of a prescription from 12 ounces to 24 ounces ; to grant
veterinary surgeons the privilege of keeping on hand one quart
of liquor, and to give druggists permission to sell up to four
ounces. The changes in the end were largely technical.
The British Empire Steel Corporation Bill to ratify agree-
ments entered into by the shareholders of the Dominion Steel
Corporation, Ltd., and the N. S. Steel and Coal Co., Ltd., in the
transfer of their stock to the B. E. S. Corporation, passed after
much debate in which the House was ranged unanimously be-
hind a protection of the resources of the Province from anything
in the nature of a stock manipulation which might prejudice its
greatest assets — the coal fields. The Hon. Mr. Armstrong was
responsible for the measure, and he declared that no steps should
700 THE CANADIAN ANNUAL REVIEW
be taken by the Legislature which would alarm capital ; he would
not say that watered stock was right, but urged caution in re-
stricting stock issued as a bonus ; the Dominion Coal Company
would never have been formed had such bonus stock not been
issued. Hon. R. E. Finn (Lib.), H. E. Corning (Cons.), and
A. F. Way (Lab.) all opposed the Bill from different standpoints
with alleged watered stock, however, as the central subject.
Hon. R. M. MacGregor* voted for the Bill and the Merger be-
cause he thought the latter would bring to an end the differences
so long existing between the two Companies as to areas and
that the time had come when the combination of these two great
Steel concerns was necessary to meet the competition of the
world and to increase exportation. The measure finally passed.
Other items of legislation included Mr. Daniels' Bill amend-
ing the Game Act with the object of appointing a Commissioner
of Forests and Game and making a number of changes in fees
and licenses so as to increase the revenue of that Branch and
to better carry on the work of game and forest preservation.
The duties of the Commissioner were to include conservation
and protection of the forests from fire; preservation and pro-
pation of game and game fish ; dissemination" of information
regarding the forests and game conservation. The Fisheries
Act was amended to bring it into line with the Dominion Act.
All non-resident fishermen must have a license or meet a pen-
alty of $25 up to $50; only rod and line fishing were to be per-
mitted in the navigable waters of the Province. Another Bill
amended the Land Tax Act so as to increase the Tax from $1.00
to $3.00 per acre on about 3,000,000 acres; persons possessing
more than 500 acres were subject to the taxation and the Gov-
ernment was given power to appoint one or more Provincial
Land Assessors.
The N. S. Tramways Bill was for the purpose of placing
that Company under the Public Utilities Act in order that it
might be in a better position to finance expiring notes and de-
sired improvements. R. E. Finn opposed the Bill, on the ground
that the Company had a contract with Halifax City and that
there was a Commission appointed, under legislation of the
House, to investigate the matter of tramfares. He contended
that the Company was loaded down by securities and that it was
a bankrupt concern waiting to be bolstered up. J. B. Douglas
claimed that the proposed Bill would save the Company from
insolvency, enable it to borrow $2,000,000 of which $1,000,000
would go toward refunding notes maturing in short time, and
the other $1,000,000 for extensions and paving.
Another Bill consolidated the Acts relating to Taxation of
Corporations such as Railways, Banks, Insurance Companies,
etc., and defined or altered the rates of taxation. An Act was
passed compelling Registration of Partnerships and defining the
*NOTE. — In the 1920 volume of The Canadian Annual Review, Mr. MacGregor, through a
clerical error, was stated to have been defeated in the General Elections — although his name ap-
peared just above the statement in the list of elected Members.
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 701
meaning of the term with the qualifications necessary for a cer-
tificate ; another measure provided for registration and transfer
of shares, bonds, debentures, and other securities. The title of
the Commissioner of Public Works and Mines was changed to
that of Minister; a proper inspection of Steam Boilers was
enacted; the establishment of a Government Purchasing
Bureau and Agent under the supervision of the Minister of
Public Works was provided for; an Act was passed to consoli-
date and revise the Public Statutes of the Province, and another
Act regulating Collective Agencies ; the Incorporation of owners
of Fishing vessels was facilitated. Provincial loans were author-
ized for Highways — $350,000 — and for Victoria General Hospital
—$500,000. The N. S. Companies Act was passed with lengthy
and elaborate clauses and conditions as to registration, names,
articles, and provisions of incorporation, shares, calls and Profits,
increase or reduction of capital, liability, management and ad-
ministration, Directors, contracts, mortgages, Prospectus con-
ditions, commissions and discounts, Debentures, inspection and
audit, penalties, etc., bankruptcy.
The Mines Act was amended and consolidated to define ex-
plicitly the duties of inspectors and deputies; conditions as to
license or lease, assignment, royalties and rentals; forfeiture of
lease of unworked areas and protection of the latter; entry on
private land, arbitration as to compensation, registration and
special operation of gold and silver mines with surveys and
licenses ; operation of mines other than gold and silver with first
and second licenses and leases, exchange of areas and surveys,
barriers and permits to submarine areas, returns and mill
licenses ; the power and functions of the Minister. The Medical
Act was amended to define the position and scope of practition-
ers, to provide for registration of medical men and to admit
Osteopaths to registration after 5 years' practice of the profes-
sion; the Pharmacy Act was amended and the Corporation Act
changed so as to impose a yearly registration fee on capital of
$10 on $5,000 up to $200 on $1,000,000 for domestic companies,
$50 on $10,000 up to $200 on $500,000, with certain specified ex-
ceptions and modifications for external Companies.
An Act was passed on the last day of the Session — though
opposed by Hon. Mr. Armstrong, acting Premier, and others —
which provided that any equities in a certain gypsum property
in Victoria County, at the time of the passing of the Act, except
the interest of Jane McNeil, should be null unless an action to
establish such rights was commenced in the Courts of Nova
Scotia within one year from the passing of the Act. As the
property had been adjudged by the Supreme Court at Ottawa,
on appeal, to belong to the creditors of Sparrow & McNeill,
Montreal contractors, this was alleged to interfere with vested
rights. Another measure dealt with institutions for the treat-
ment, care and custody of Insane persons and authorized the
Government from time to time to erect, equip and maintain one
702
THE CANADIAN ANNUAL REVIEW
or more Hospital centres, psychopathic Hospitals and Convales-
cent homes.
The annual Budget, in the absence, through illness, of the
Hon. George H. Murray, was delivered, in May, by the Hon.
J. C. Tory. It was a most comprehensive statement, including
much new data, and attracted considerable attention. He dis-
cussed the history of the revenues of Nova Scotia since Con-
federation and stated the increase in the estimated total for
1921 at $728,043, or nearly the average annual revenue of the
Province during the 40 years following 1867. He estimated the
revenue for 1921 at $4,555,555 — passing the four-million mark
for the first time in the history of the Province ; the increase
was very largely derived from Banks, Insurance, and other fin-
ancial corporations or, as far as possible, from those most able
to bear the burden. The Receipts for the year of Sept. 30, 1920,
had been $3,801,016; the Expenditures were $3,893,724, leaving
a deficit of $92,708. Mr. Tory summarized the sources of the
revenue and the chief items of expenditure as follows :
Sources of Revenue
(1) Federal Subsidy.
(a) Allowance for \
Government... |
Allowance for V
Population .... $636,666. 86 or 17
Debt Allowance '
(2) Revenue from Property Owned.
(a) Mines ...... 690,517.72
Chief Items of Expenditure
Roads and Bridges $ 971,252.95 or 25
Charities 821,593. 16 or 21
%
(b) Interest .............. 209,866.31 5-5
(c)
(c) Crown Lands....
52,877.97
18-4%
5-5%
1-1%
Total $ 953,262. 00 or 25 -3%
(3) Revenue from Taxation.
(a) Municipal Road
Tax 324,515.42 8-6%
7-
6-9%
6-2%
5-
4-8
(b) Motor Vehicles
Taxes
266 214 65
(c) Income Tax on
Corporations.,
(d) Fees from Cor-
porations
(e) Succession Du-
ties
(f) Theatres
263,378.30
235,208.31
195,600.00
183 312 23
(g) Land Tax
32,573.87
(h) Sundry Tax
Items
27 783 10
Total
$1,428,585.08
Interest
Education
Civil Government
Agriculture
Sinking Fund
Steamboats
Sundries
Miscellaneous
Public Buildings ,....
Public Printing
Immigration
Criminal Prosecutions.
Vital Statistics
Provincial Museum
616,642. 67 or 16
545,048. 48 or 14
213,115. 46or 5-4
118,162. 13 or 3
103, 489. 59 or
82,225. 5 lor 2-
80,774. 74 or 2-
72,019. 29 or
63, 107. 11 or
45,075. 50 or
39,816. 63 or :
19,714.77 |
11,241.04 j- or
2,440.877
2-7
1-9
1-7
1-2
4) Revenue from Public Services.
(a) Hospitals 506,364.71 13-3%
'3) Education 105,645.80 2-8
(c) Agriculture 28,040.57 -5
Sundries 42,450.24 1-4
w
i
Total Expended on
Expenditure Items $3,805,689.90 or 97-8%
Expenditure on Revenue Accounts.
Mines 59,156.78
Crown Lands 12,796.66
Theatres 10,321 .70
Game Licenses 4,843.21
Succession Duties 916.31
Total Expended on
Revenue Items
88,034.66
Grand Total $3,893,724.56
2-2%
100%
Total $ 682,501. 32 or 17-9%
Grand Total $3,801,016.06 100 ^
Referring to the Provincial Debt, Mr. Tory stated that
during the War period the Debt of Nova Scotia, with the excep-
tion of P. E. Island, showed the smallest increase of any of the
Provinces— the total gross increase being $4,400,000. The gross
Debt was $17,811,330, the net Debt being only $10,589,613. The
total borrowings for 1921 amounted to $3,858,000 and were
chiefly spent upon the construction of permanent roads and the
development of Hydro-electric power.
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 703
Educational Conditions in Nova Scotia. The Report of A. H.
MacKay, LL.D., F.R.S.C., the able Superintendent of Education in
Nova Scotia for many years, showed a general advance for the
year ending June 30, 1921 ; during that period the number of
schools increased by 63, the enrollment of pupils by 1,387, the
total days' attendance by 1,436,503 days; the number of Sec-
tions without schools was 13 less than in 1919-20 and Teachers'
salaries rose in accordance with grade: "The Inspectorial
Training Course of four weeks for untrained teachers was at-
tended by 594 as against 331 the previous year; the Provincial
Normal College graduated 241 trained teachers as against 228
in 1920; the Rural Science School Course of four weeks at the
Normal College of Agriculture, Truro, graduated 137 as against
108 the previous year."
The Superintendent made this reference to special matters:
"A number of activities which are being carried on locally, and
quite independently of this Department, are of such importance
as to merit a reference in this Report. One of these is the Well
Baby Clinic at New Glasgow which is doing splendid work. The
School Dental Clinics of Halifax, New Glasgow and Sydney are
also deserving of commendatory notice. In Dartmouth and
Halifax unusually well-equipped and competently staffed Health
centres are being maintained by the Massachusetts-Halifax
Health Commission, where the value of health work of an ad-
vanced type is being demonstrated on an extensive scale." The
Public Health Department was described as doing effective
work with the 4 special nurses of 1920 developed into 16 and the
schools as their chief scene of operations. The following tables,
showing a 30-year's advance in Educational matters, was made
public :
Statistics
1891
1921
General Statistics
1891
1921
Teachers 2,229 3,089
Pupils 83,458 109,483
Daily present 49,347 73,238
PerCent 59-0 66-9
Local Assessment 393,077 2,370,712
Municipal Assessments.. $118,301 $495,242
Provincial Sources 213,906 576,591
Total cost 725,284 3,442.546
Cost per pupil 14-69 47-04
Salaries
Male
Academic
1891
1921 $1,882
Female
1891
1921 $1,291
Class A Class B
$448
$1,471
$907
48 )
$1,074
$286
687
Class C
$260
791
$223
557
Class D
$185
471
$163
431
Between 1918 and 1921 the expenditure on Schools had
risen by over $1,500,000. In 1921 the Schools in operation num-
bered 2,898, the Teachers 3,089— of whom 1,598 were Normal-
trained; the new Teachers 599; the attendance of Pupils in the
1st quarter was 95,051, in the 2nd 101,773, in the 3rd 105,084, in
the 4th 109,483; the Pupils in High School grades numbered
9,705, in Public Schools 109,483 and in Technical Schools 3,399;
of the latter 241 were in the Normal College, 137 in Rural Science
704 THE CANADIAN ANNUAL REVIEW
School, 73 in the Regular and 480 in the Short Courses in Agri-
culture, 33 in the N. S. Technical College, 2,042 in the Evening
Technical Schools and 393 in the Coal Mining Schools ; the total
attendance in all Schools was 112,882. In finances, there was
$158,174,112 worth of property in the Sections, $6,500,570 of
School property, $2,370,712 of a total Section vote and $491,515
spent by Sections in repairs ; of the Expenditure $453,373 went
on general education, $112,764 on Technical, $10,453 on Rural
Science, $495,242 from Municipal School Fund and $2,370,712
from Sectional School assessments. Incidents of the year in-
cluded a subscription of $5,000 from Lord Beaverbrook toward
the Foundation Fund of the County Academy, Pictou ; a demand
from the United Farmers' Convention at Truro (Mch. 23) for a
more adequate system of Common School (rural) Education;
a statement by the Superintendent (Dr. MacKay) that the new
School textbooks of the Province were being supplied by T.
Nelson & Sons cheaper than any other Publishers could under-
take it on account of old plates which they were able to use.
Nova Scotia Institutions of Higher Education. Dalhousie
University, Halifax, as the result of its drive for funds in 1920, amount-
ing to $2,250,000, was enabled, in 1921, to develop materially and to com-
plete some cherished schemes of expansion. As to buildings, a fireproof
Wing was added to the Macdonald Memorial Library with a capacity of
125,000 volumes ; a companion building to the Library was finished during
the year. It was dedicated to the Faculty of Law on Apr. 23, 1921, when
the Corner-stone was laid by George S. Campbell, LL.D., Chairman of the
Board of Governors, with the identical trowel used by the Earl of Dal-
housie in laying the corner-stone of the first Dalhousie building over a
century before. Temporarily, the building was used for the Faculty of
Arts. Shirreff Hall, a splendid structure costing $300,000, was well under
way and was to be utilized as a residence for women students when
finished; the erection of a building at a cost of $150,000 for Medical
purposes, Bio-Chemistry and Physiology had also been commenced.
The $300,000 given by Mrs. E. B. Eddy, during her lifetime, for
Shirreff Hall was supplemented, in her will, by a further sum of $350,000,
and, through the death of Mrs. D. A. Campbell, the University also came
into possession of the estate of the late Dr. Campbell which completed
the endowment of the Campbell Memorial Chair of Anatomy. In Sep-
tember the announcement was made by the Board of Governors that
Prof. Henry Munroe, of the Law School of Columbia University, New
York, had been appointed Professor of Political Science and International
Law, in the chair established and endowed by the late Senator Dennis.
Other new courses added at the commencement of the same term were
m American Literature and Spanish. Outside, the University undertook
to carry on a series of Extension lecture courses given by various mem-
bers of the Staff, in leading Maritime towns, on subjects of current in-
terest.
Other incidents of the year were the award to C. A. Mackay, M.A.,
Iruro, of the Science Research Scholarship by His Majesty's Commis-
sioners for the Exhibition of 1851 in London, which carried with it a
value of $1,000 a year and was tenable for 2 years— a notable fact in con-
nection with this award being that only 4 Universities in Canada had the
privilege of a nomination and, in 1921, only 20 Scholarships had been al-
lotted for nominations from 28 Universities throughout the British Em-
pire; the donation, by W. H. Dennis of the Halifax Herald to the Uni-
rersity of $600 annually as Prizes for the best prose or verse contribu-
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 705
tion to be known as the Joseph Howe Prize and for an Essay to be
known as the James De Mille English Essay Prize; the inauguration on
Nov. 9 of a series of lectures arranged under the auspices of the Com-
merce Society of Dalhousie University for the benefit of business men
in Halifax — the course covering Modern Retailing, Shipping, Insurance,
Banking, etc., from practical and historical viewpoints. For the College
year, 1920-21, the total number of students was 677 of whom 103 received
graduate and post-graduate degrees on May 14.
Acadia University, Wolfville, suffered, as the result of a destructive
fire, at the end of 1920, but had immediately initiated a $1,000,000 En-
dowment campaign. The Treasurer's Report for the year ending July
31, 1921, showed an increase in the Trust Funds of $91,917, bringing the
total up to $770,149 and total Assets of $1,566,552. The students registered
at the University in 1920-21 were 333 of whom 41 graduated B.A. and 8
B.Sc. in May, 1921. At the 1921 Convocation the Honourary degree of
D.D. was conferred upon Austen T. Kempton and Maynard W. Brown.
A number of appointments were made to the Staff during the year, in-
cluding R. A. Conant, B.A., as Professor of Romance Languages ; William
M. Rau, M.A., as Professor of Geology; Chester E. Kellog, M.A., Ph.D., as
Professor of Psychology and Education; Miss Edith M. White, Dean
of Women and Instructor in Social Science.
The University of St. Francis Xavier, Antigonish, from Jan. 17 to
Mch. 12, carried on a notable and highly successful experiment in Ex-
tension work under the direction of the Vice-President, Rev. J. J.
Tompkins, and his Staff. By means of these free Classes, higher edu-
cation was made available to many young people who had left school
in their early teens and 53 students took the Course, varying in age from
16 to 57 years — very few of whom had previously attended school after
the 6th grade ; such general appreciation was expressed that it was
decided to continue the Course the following year. The curriculum in-
cluded Agriculture, Veterinary Hygiene, English, Commerce, Commercial
Law, Arithmetic, Mechanics, History, Political Economy and other sub-
jects. The total registration in 1920-21 was 197, including 29 women, and
of these 28 graduated as B.A. At the Convocation,on May 17, one re-
ceived the M.A. degree and on Augus G. MacDonald, Inspector of Schools
in Antigonish, was conferred the Honourary degree of LL.D. On Dec.
8, 1921, it was announced that the College had been named in the will of
Dr. Neil McNeil as the ultimate beneficiary of an estate valued at about
$1,000,000, which, however, was to be held in trust for certain-named
heirs during their lifetime.
The oldest University in Canada, King's College, Windsor, which
dated back to a Royal Charter in 1791, entered on a new policy of ex-
pansion in 1920-21. His Honour MacCallum Grant, Lieut. -Governor, on
May 12, 1921, laid the corner-stone of a new Building to replace the one
which was destroyed by fire in 1920. On Mch. 30, the following gifts
were announced by the Executive of a Million Dollar Campaign Fund for
King's College: Chief Justice R. E. Harris of Nova Scotia, $50,000; J. W.
Allison, $25,000; other donations $6,000. The students in attendance,
1920-21, numbered 146. At the annual Convocation (May 8-14) 29 Aca-
demic degrees were conferred on students, and also the Honourary de-
gree of D.C.L. upon President N. M. Butler of Columbia University, N.Y. ;
Lieut. -Governor Grant of Nova Scotia; R. A. Hiltz; R. W. Norwood;
G. H. Bolt; E. M. Stires.
The Provincial Normal College at Truro had an attendance of 248
students in 1921. Special attention was paid to Rural Science and, early
in April, the Faculty chose 42 students of its senior classes for special
study in this connection. On July 5th a 4-weeks' course, conducted by
the combined Normal and Agricultural College Staffs and assisted by
experts from outside, was held, enrolling in addition to most of the 42
students above mentioned, some 60 teachers, fresh from rural school
duties and ambitions to improve their usefulness. On Nov. 3rd the N. S.
706 THE CANADIAN ANNUAL REVIEW
College of Agriculture at Truro opened with a registration for the year
of 65, including 41 pupils from Nova Scotia, 20 from New Brunswick and
4 from P. E. Island.
The Nova Scotia Anniversaries of 1921. This historic Prov-
ince of Canada proved itself during the year from the stand-
point of age and recorded annals. It marked in different ways
(1) the 300th anniversary of the Royal Charter given by James
I of England and VI of Scotland (Sept. 29, 1621) to Sir William
Alexander for the creation of a new Scotland in a new world,
with British authority concentrated then, and at later intervals,
in His Majesty's garrison at Annapolis Royal; (2) the fact that
on Apr. 19, 1721, there was established at Annapolis Royal by
His Excellency Richard Phillips, Governor, the first Court of
Judicature to administer the common law of England in what
afterwards became the Dominion of Canada and based, as "a
rule or pattern upon the lawes of Virginia" as then administered
under British rule; (3) the centenary of settlement in Annapolis
Royal of Thomas Chandler Haliburton, famous as the "Sam
Slick" of American humour and as a Canadian and British pub-
licist and jurist.
Much was written about the subject in the Canadian press ;
J. Murray Clark, K.C., LL.D., of Toronto, was unceasing in his
effort to have the triple events properly recognized and to make
known the relationship of "the lawes of Virginia" to those of
England and Nova Scotia, with the fact that both the British
Empire and the United States were now largely governed by
the Common law of England.* To Mr. Justice J. A. Chisholm
of Halifax was due the actual discovery of the Order in this re-
spect and the reference to Virginia. The Chairman of the Gen-
eral Committee appointed to arrange the celebrations was F. C.
Whitman of Annapolis Royal. Minor incidents of this period
growing out of the greater ones were the celebration in July of
the 150th anniversary of the foundation of Presbyterianism in
Canada at Glenholme, Colchester County ; in August of the cen-
tenary of the first Presbyterian church in Cape Breton at Mahon,
Inverness County; on Aug. 15 the 150th anniversary of the
North British Society of Halifax, the oldest Scottish organiza-
tion in Canada, was commemorated.
On Aug. 31st the triple anniversary was marked by a repre-
sentative gathering at Annapolis Royal. Judge Chisholm presid-
ed and the Tablet in commemoration of the Royal Charter and
foundation of Nova Scotia was presented by the Government of
the Province ; the Tablet marking the Legal Bi-centenary was
presented by Chief Justice the Hon. R. E. Harris and Sir James
Aikins, Lieut. -Governor of Manitoba and President of the Cana-
dian Bar Association, with, also, cables of congratulation from
Lord Birkenhead, Lord High Chancellor of Britain, and Hon.
W. H. Taft, Chief Justice of the United States ; the Tablet in
honour of the Haliburton Centenary was the gift of F. C. Whit-
*NOTE. — A notable article by Dr. Clark appeared in the Virginia Law Register of Charlotte-
ville, Va., June, 1920.
GOVERNMENT POLICY AND THE POSITION OF NOVA SCOTIA 707
man and the Historical Association of Annapolis Royal. The
old Fort of Ste. Anne, with remains marking the scene of many
struggles and centuries of change and historic action, was the
scene of this new event. The Hon. F. B. McCurdy represented
the Federal Government and formally received the Tablets on
behalf of the Dominion after that of the Tercentenary had been
unveiled by Hon. G. H. Murray, Prime Minister of the Prov-
ince, that of the Legal Bicentenary by Lieut. -Governor Mac-
Callum Grant, and that of the Haliburton Centenary by Mr.
Whitman.
The speeches were of historical interest. Mr. McCurdy
drew attention to the fact that "before the Pilgrim Fathers land-
ed at Plymouth Rock, a thriving village stood on these shores
and early pioneers had already reaped the first crops ; that dur-
ing the long and tragic struggle which ensued, this little place,
Port Royal, changed hands no less than six times before it pass-
ed finally under British rule." Judge Chisholm, in opening the
proceedings, spoke briefly; Mr. Premier Murray at consider-
able length. The latter drew attention to an interesting fact:
"The constitution of what was intended to be the Dominion of
New Scotland by King James was due to no mere whim or per-
sonal caprice, although it has been mistakenly represented as
such. It was a deliberate act of policy. He had observed New
France, founded and growing north of the St. Lawrence and
threatening to spread southward. The establishment of New
England to the south had been reported to him. He determined
to interpose a New Scotland between them. Had his policy been
pursued and maintained, it would have been much better for
Canada and perhaps for this Continent." High tribute was paid
to Nova Scotia by Sir James Aikins: "The only unit of our
nation that has had its own flag borne on every ocean by thou-
sands of its own ships ; the land where the first elective Assembly
in British North America met — a third of a century before those
of the Canadas ; the first Province to have an organized Court of
Law, and the first to have a Chief Justice — Jonathan Belcher."
Chief Justice Harris followed in a thoughtful address which
combined historic and current references ; he questioned whether
the Courts and Parliaments of the present day had not gone too
far in the abolition of the lash; whether the troubles of the
present time were not, in some part, due to the short crop of
birch rods in this country ; the sentences of the ancient Court at
Annapolis Royal had been practical, commonsense and calculated
to prevent crime. The Tablets read as follows :
1. This Tablet, placed here by the Government of Nova Scotia, A.D.
1921, commemorates the 300th anniversary of the issue of the Charter
of New Scotland by James I of England, VI of Scotland, A.D. 1621 ; the
birth of an idea which lived and had its final fruition in the taking of
this Fort and conquest of Acadia in the reign of Queen Anne.
2. This Tablet, placed here by the Bench and Bar of Canada, A.D.
1921, marks the 200th anniversary of the establishment and sitting in this
Fort, A.D. 1721, of the first Court administrating English Common Laws
within what is now the Dominion of Canada.
708 THE CANADIAN ANNUAL REVIEW
3. This Tablet, erected A.D. 1921, under the auspices of the His-
torical Association of Annapolis Royal, commemorates the 100th anni-
versary of the arrival in this town of Thomas Chandler Haliburton, who
lived here 8 years and began in this place his great career in Law,
Literature and Public Life.
At a meeting in the evening several historical papers were
read. Dugald Macgillivray of Halifax presented one by Dr.
Alex. Fraser of Toronto on the Royal Charter; Angus Mac-
Murchy, K.C., of Toronto, read one by Dr. Murray Clark on the
Relation of the British Dominion of Virginia with that of
Canada; Dr. Charles Morse, K.C., of Ottawa read one on "The
Courts and the Commonwealth." A few months later (Sept. 7)
Annapolis Royal was swept by fire and one-third of the beauti-
fully situated little town destroyed.
The United Farmers of Nova Scotia. The 1st Annual Con-
vention of the United Farmers of Nova Scotia met at Truro, on
Mch. 22-23, and, though not large, its attendance and the de-
liberations were considered satisfactory. Better organization,
improvements in rural schools, and closer co-operation between
the United Farmer bodies in the Maritime Provinces were dis-
cussed. The address of President H. L. Taggart pointed out
strongly the need of organization in several Counties ; emphas-
ized the necessity of imparting responsibility to the organizers
who were appointed ; urged the promotion of trade co-operation
as the biggest work confronting them. In conclusion, he read
the Provisional platform of the local organization, and asked on
behalf of the Farmer members in the Legislature for full con-
sideration.
As to this, the plank dealing with Education produced con-
siderable severe criticism of the system in use, and resulted in
the following Resolution : "That the State owes to every resident
child a common school education and, under the B. N. A. Act,
Education is within Provincial administration ; that, in Nova
Scotia, the children of the rural parts are not receiving an
adequate common school education and the administration of the
Department of Education does not command confidence ; there-
fore, resolved that, in the opinion of this Convention, our school
system and management should be revised and reformed having
in view, among other things, a radical simplification of the cur-
riculum, limiting the number of subjects taught, and aiming at
thoroughness and accuracy as a mind habit." The Convention
approved of Prohibition and an amendment was made to the
Prohibition plank calling for a "strict enforcement of the law."
A discussion of the Government's impending legislation giving
Veterinarians the right to dispense liquor evoked a Resolution
calling upon the Farmer members to oppose such a measure.
Other business included the Secretary's report which dealt
mainly with the work of organization during 1920-21 ; the in-
creased membership fee of $1.50 a year, beginning with January
1st, 1922 — the wife and children living at home being granted
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 709
membership at half the ordinary fee ; the support of Co-operative
movements, and Educational lectures on Rural Credits, etc. A re-
port by G. G. Archibald, Editor of the United Farmers' Guide,
stated that the circulation of that journal was 19,500 and that
it had started out with a political editorial page but the politics
expressed had gained little support and eventually caused a
direct loss of more than 4,000 subscribers. The management
then cut out politics and devoted the space to matters special
to Agriculture. Since that time the Guide had quite recovered its
losses and increased to a greater degree, but further support
was necessary. At the close of the Convention H. L. Taggart,
M.L.A., was re-elected President; D. R. Nicholson and Dr. H. E.
Kendall, Vice-Presidents ; F. A. Chipman, Secretary. The
U. F. N. S. had elected 6 candidates to the Provincial Legisla-
ture in 1920 ; they made a strong effort to repeat this success in
the Federal elections of 1921, and 5 candidates were nominated
but none elected.
As in Nova Scotia, values fell in this Province
New Bruns- very largely throughout the year, and production
wick in 1921; was noj- Up ^o ^he average. The crops had to face
Government continued drought and excessive heat; hay, grain
Legislation ' and early varieties of potatoes were seriously af-
and General fected while turnips and later varieties of potatoes
Position. developed very well. The total value of agricul-
tural production, in 1921, was $38,325,400,* and this
included 427,000 bushels of Spring wheat valued at $641,000;
7,118,000 bushels of Oats (2,000,000 bushels less than in 1920)
at $4,627,000; 1,108.000 bushels of Buckwheat at $1,108,000; 16,-
192,000 bushels of Potatoes at $14,573,000; 625,000 tons of Hay
and Clover at $15,625,000. There was only a slight increase in
the production of Potatoes but a gain in values over 1920 of $4,-
300,000; in Hay the production was 240,000 tons less and the
loss in values $8.600,000. Barley was valued at $168,000, Beans
$116,000, Fodder corn $260,000.
Following the difficulties in the Hay crop there was a large
reduction in Live-stock. As to numbers, Horses, on June 30,
1921, numbered 69,958, or 7,000 less than in 1920; Cattle 295,446,
or 37,000 less ; Sheep 236,951, or 43,000 less ; Swine 89,337, or
3,500 less. In values Horses were estimated at $8,045,000, Cat-
tle $9,159,000, Sheep $1,185,000 and Swine $1,519,000; the total
depreciation in value was $11,000,000, of which Horses took $2,-
600,000, Cattle $7,100,000, Sheep and Swine $1,500,000. The
gross agricultural wealth of New Brunswick was estimated in
1921 (Federal Bureau) at $154,915,000, of which $84,993,000 was
in Land, Buildings and Implements. The Agricultural income of
this year, compared with preceding years and illustrating, also,
the deflation in prices, was as follows :
*Note.— Figures of the Federal Bureau of Statistics.
710 THE CANADIAN ANNUAL REVIEW
New Brunswick 1918 1919 1920 1921
Field Crops $42,891,000 $53,134,000 $46,357,000 $38,326,000
Farm Animals" " 3,681,000 4,869,000 3,934,000 2,315,000
Wool 569,000 684,000 370,000 176,000
Dairy Products .. 1,419,000 2,214,000 4,516,000 4,616,000
Fruits and Vegetables 1,600,000 1,600,000 1,600,000 1,600,000
Poultry and EKRS 960,000 960,000 1,080,000 1,320,000
Fur Farming.... 55,000 55,000 127,000 42,000
Maple Products 50,000 53,000 53,000 63,000
Totals $51,225,000 $63,569,000 $58,137,000 $48,458,000
Incidents of the year in this connection included the success
of New Brunswick apples in the Daily Mail Imperial Fruit Show
at London, England (Oct. 28) with 4 Prize medals obtained —
2 gold and 2 bronze; the official statement of Poultry in the
Province as totalling 679,542 fowl, 29,452 Turkeys, 22,585 geese
and 11,826 ducks; the election of W. B. Gilman, Springhill, as
President of the N. B. Fruit Growers' Association, and Arthur J.
Gaudet of St. Joseph as President of the N. B. Farmers' and
Dairymen's Association; the grant of $64,110, under the Federal
Agricultural Aid Act, with $9,772 of it expended on Agricultural
representatives, $7,440 on Women's Institutes and $14,112 on
Elementary Agricultural education; the fact of 57 Fur-farms
in the Province at the beginning of the year with a total value
of $532,250 and a pelt value sold of $72,500. The Mineral pro-
duct of the Province in 1921 was $1,777,358, or $714,000 less than
in 1920; the output of Coal was 180,358 short tons, or a slight
increase; the Fisheries produced (1920 latest figures) $4,423,745
• — a decrease of $555,000; Building operations (1920 figures)
totalled $3,132,589 in value of work done with $1,974,003 of
capital invested; the total Imports of the Province in the year
of Mch. 31, 1921, were $41,939,560 and the Exports $113,746,753.
The industries of New Brunswick had an unprogressive year
in 1921, and this ensured depression in centres like St. John, even
if shipping and trade had not been stagnant; the 1919 official
statistics showed a capital of $89,958,882 invested in 1,439 estab-
lishments, compared with $20,741,170 in 1900, while the value of
production was $100,005,695, as against $20,972,470 in 1900; in
April a number of factories resumed operations with some re-
ductions in wages or the number of employees; the Atlantic
Sugar Refineries started work on their raw product in stock
and the Clarke Bros. Paper Mills Co., which had taken over the
former Ford plant in St. John, started the manufacture of fibre
shipping cases with the pulp supplied by the Clarke mill at Bear
River, N. S. ; the Fraser Companies, Ltd., following the issue of
$2,000,000 Ist-mortgage 6 per cent, bonds, showed profits for
1920-21 of $2,157,618; the Canada Cement Co., of Montreal, in
August, took up a number of options on limestone properties
at Havelock, N.B. In Lumber business was bad, with an esti-
mated 300,000,000 feet B.M. produced, or about one-half of the
1920 product; manufacturing costs, however, averaged $24.00
per 1,000 feet as compared with $30.00 in the preceding year;
the cost of labour was one-third what it was in 1919, but the
prices of food-stuffs and supplies and freight rates maintained
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 71 1
a high level; stocks held by manufacturers and exporters were
high at the close of the year, and estimates for New Brunswick
up to 500,000,000 feet B.M. It may be added that the population,
according to the Census of this year was 387,876, compared with
351,889 in 1911— an increase of 35,987 in 10 years.
The Foster Government of New Brunswick. The Govern-
ment of Hon. W. E. Foster was in its 5th year of office and had
carried the Province in 1920 by a small but working majority
over elements which would not, or could not, combine against
the Liberals — 14 Conservatives, 6 United Farmers and 4 Inde-
pendents. Following the Legislative Session, Mr. Foster was in
England, chiefly to arrange the matter of Provincial representa-
tion in London and the location of offices. He told the Canadian
Gazette, on May 19, that the Province offered good prospects to
those who desired to go to Canada. It was only a six days' run
and he could not understand why people arriving to settle in the
Dominion should make a long inland journey when just as great
advantages were offered to them within a few hours' from St.
John : "The opportunities for work along agricultural lines are
abnormal and the advantages as good as ever. New Brunswick
consumes more foodstuffs than she produces. There is, there-
fore, a good home market for all general products of the farm.
We can offer inducements to people with moderate means, as
cleared lands can be purchased at reasonable prices in the Prov-
ince, and, in cases where a man does not possess enough to pur-
chase a farm, the Government has available machinery for loan-
ing part of the money on easy terms." He pointed out that a
man had to work hard, but if he did his reward was assured:
There are many advantages which the Province possesses. One is
abundant railway facilities. New Brunswick has more railway mileage
per head of population than any other Province. Another point is that
education, which, is under the Provincial Government, is excellent, and
there are good schools everywhere. The Province has much to attract
sportsmen, possessing plenty of moose and deer and smaller game, and
good salmon and trout fishing. Lumber is the chief industry, and, as in
the case of other commodities, people are not buying much at present.
There is a good lot of manufactured timber in stock, and it is a matter
of waiting until the market recovers. The Government has 10,000,000
acres of Crown Lands, which yield from 250 to 350 millions superficial
feet of lumber a year. The pulp and paper industry is making progress,
and during recent years mills have been established. They have hitherto
supplied their own power from coal, but the Government has evolved a
comprehensive scheme for the development of water-power generally in
the Province.
His statement in full afforded a good picture of current
policy and progress in the Province ; in addition, he pointed out
that the Government was carrying on an active Road programme
extending over five years from 1920 and involving an expendi-
ture of from $4,000,000 to $5,000,000. The Hon. C. W. Robin-
son was acting Premier during Mr. Foster's absence. There
was only one appointment in the Government during the year —
that of Joseph E. Michaud, M.L.A. for Madawaska, a young
712 THE CANADIAN ANNUAL REVIEW
French-Canadian lawyer of 32 years, who was made Minister
without Portfolio on Jan. 5. An interesting incident was as-
sociated with the forceful personality of Hon. Peter J. Veniot,
Minister of Public Works, who was said to have been aproach-
ed through a third person to join Mr. Meighen's Dominion Cabi-
net; it was denied by the Prime Minister in the Commons on
May 19, and re-affirmed by Mr. Veniot with succeeding publica-
tion of correspondence which seemed to indicate that proposals
had been made, but made unofficially, and not with Mr. Meighen's
direct knowledge.
One of the projects which this Minister had under consid-
eration in 1921 was an inter-Provincial bridge across the Resti-
gouche River from Campbellton, N.B., to Cross Point, Quebec;
the estimated cost was between $700,000 and $800,000, and of
this the Federal Government was asked to pay one-half with
the other half to be divided between the New Brunswick and
Quebec Provincial Governments. His annual Report for 1920,
presented to the Legislature in March, reviewed the record of
the Department since 1855 when W. H. Steeves was the first
Commissioner, and stated an expenditure of $99,740 upon Public
buildings, $22,303 upon Ferry maintenance, $33,240 upon Steam
navigation, $16,357 upon Motor vehicles, with $404,401 upon
Ordinary road construction and maintenance and $934,836 upon
Permanent roads. There were under construction at this time
1,267 miles of highway which had been approved by the Federal
Government under its Highway Appropriation Act, and half of
the above expenditure for Permanent roads was in connection
with the 4 main trunk systems being built with Dominion co-
operation. They were as follows :
1. The North Shore route, which extended from Metapedia, where
it joined the Quebec Highway system, to Port Elgin, where it joined
the Bay of Fundy route.
2. Bay of Fundy route extending from Cape Tormentine to St.
Stephen and connecting with the P. E. Island Highway via car ferry at
Cape Tormentine, with the Nova Scotia roads at Aulac, and with the
State of Maine highway at St. Stephen.
3. St. John Valley route, extending from St. John to the Quebec
border.
4. The central routes, from St. Stephen to Bathurst via Fredericton
and Newcastle and Fredericton to Sussex, via Chipman.
The N. B. Tourist and Resources Association, at its Sack-
ville meeting (June 23) passed a Resolution praising the good
work which was being done by the Public Works Department in
improving Highways, and thanked Mr. Veniot for his personal
interest in the policy. The Minister of Agriculture (Hon. D. W.
Mersereau), in his annual Report for 1921, dealt with many
elements of work done to promote production and help the
farmer. School fairs, he said, were growing in popularity with
many prizes given by the Department; the Rural Education
Monthly was circulated in 1,500 school districts and to 350 Normal
School students, and it dealt with agricultural matters chiefly as
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 713
they affected the farmer; the Rural Science School for Teachers
supported the Normal School course with special instruction in
Nature Study and Agriculture ; School gardens, home plots,
poultry projects to interest school children, demonstration plots
in roadside houses, crop improvement work, seed fairs, fibre-flax
plots and varied forms of demonstrational instruction were under
way.
Other Agricultural matters included the organization (1920)
of the N. B. Sheep Breeders' Association and the Government's
effort to encourage, through it, the co-operative marketting of
wool — of which the 1921 production was 1,354,409 pounds ; the
bonusing of pure-bred stock and close inspection of Dairy fac-
tories with 1,100,303 pounds of Cheese and 1,162,020 pounds of
Butter produced; the formation of Poultry Clubs, initiation of
Egg-laying contests, active support given by the Department to
the N. B. Fruit Growers' Association and its co-operative work ;
the appointment and operation of an Advisory Board for the
N. B. Women's Institutes and the fact that 94 of these bodies
showed receipts of $22,119 and expenses of $13,262 in 1920-21
with important Short Courses in Household Science ; the grants
to 153 Agricultural Societies and their Field Crop competitions
and the formation of a co-operative body called the N. B. Agri-
cultural Societies United, as a buying organization for fertiliz-
ers, etc. ; the statement by F. E. Sharp, Superintendent of Im-
migration, as to his Publicity work and the Land Settlement
Board which in 1920-21 purchased 6 farms and had a credit
balance (Oct. 31, 1921) of $88,073 with full payments received on
19 farms for which deeds had been executed. The Provincial
figures of production are often different from the Federal esti-
mates and the total product of Wheat in 1921 was stated at 440,-
724 bushels, Oats 6,966,542 bushels, Turnips 6,607,421 bushels,
Potatoes 16,191,653 bushels.
Hon. Clifford W. Robinson, Minister of Lands and Mines,
in the 61st Report of his Department, stated the net revenue at
$1,166,735, compared with $1,573,340 in 1920. T. G. Loggie,
i.s.o., Deputy-Minister, pointed out as to Lumber that : "I esti-
mated 200 million superficial feet would probably be cut for the
year just closed (the actual cut being 213 million feet) or about
the annual growth, x x x In my judgment the true policy
for conservation of the forest is to cut the merchantable growth,
keep out the forest fires and let the young stand mature to mer-
chantable logs ; we must not overlook conditions as they now
exist, and in this connection let me mention the ravages of the
heavy forest fires of the past season, the devastating effect of
the spruce bud-worm, and the unemployment problem."
These matters were seriously considered by the Govern-
ment and the necessary steps taken. The stumpage on burnt
lumber was fixed at half rates, that on bud-worm killed lumber
was reduced 20 per cent, (on spruce) and 55 per cent, on fir;
these regulations were generally accepted by the lumbermen as
714
THE CANADIAN ANNUAL REVIEW
meeting the situation. The Summer of 1921 was a season of
specially disastrous fires and they raged in all parts of the Prov-
ince— except the northern — and from May to September ex-
istent conditions taxed the Department as never before; early
in the Spring arrangements had been made on a large scale to
cope with the difficulty, but the force commissioned was found to
be inadequate and, in all, 495 fires were reported ; several of these
were very large and required the expenditure of thousands of
dollars to subdue, with all but 2 per cent, stated as preventable
in cause.
The receipts from Game exceeded the estimate by 25 per
cent, and the fines for violation of the Game laws totalled $6,767 ;
the number of Moose killed was 1,016 and of Deer 1,880, while
the game, guide, bird, beaver and fishing licenses issued totalled
13,503. Considerable progress was made with the Forest sur-
vey during the year and the Chief Forester reported that over
half the Crown Lands had now been surveyed, mapped and fully
reported upon. During the year forest parties worked in the
northern part of the Province on waters tributary to the Nepi-
siguit River, where they covered territory of 867,108 acres. The
expenditure on this work for the year was $58,940. The total
area covered to Oct. 31, 1921, was 3,951,610 acres, or 6,174 square
miles. There was a small increase in the Coal production and the
Minto district was still at the top with 72,664 tons ; the total of
all mines was stated as 140,142 tons of 2,240 pounds per ton.
No new producing oil or gas wells were opened during the
year. Wells were cleaned out and deepened with the result
that the production of gas was almost the same as in the pre-
ceding years, while the quantity of oil exceeded that of 1920 by
54,607 gallons. The crude oil totalled 845,208 gallons, the value
of gas was $755,761, the Government's royalty $41,891.
The Department of Health, under Hon. Dr. W. F. Roberts,
continued its important work during 1921. Previous to 1918,
when Dr. Roberts carried the Public Health Act through the
Legislature, Provincial conditions in this respect were some-
what primitive ; since then, these matters had been under the
organized influence of a Minister and a Department, and they
included in their scope two vital Public Services which had never
before been under one Department — the collection and compil-
ation of Vital Statistics and Medical School Inspection. As to
the latter service, New Brunswick soon took high place in its
application of inspection to rural schools and, in 1921, the Rock-
feller Foundation International Health Board, after three very
careful surveys of the work, granted the sum of $27,000 annual-
ly, for two years, with the understanding that the Province
should take over from the Municipalities and make permanent
the existing Service. This gave to every rural school in the
Province an all-time service. In 1918 $1,600 was spent by the
Government upon Public Health; in 1921 the total voted was
$61,000. There were, during this year, 8 clinics for free treat-
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 715
ment of Venereal Diseases and 17 Sera depots for free distribu-
tion to the poor of Vaccines, sera of all kinds, antitoxins, etc.;
the Province had one of the most efficient laboratories in Can-
ada, presided over by an official of national reputation and here
technicians were in training1 for the smaller laboratories which
were being established in the lesser hospitals of the Province.
Power development became increasingly important during
1921. In conjunction with the Water Powers' Branch of the
Dominion, the Province had, in 1918, commenced an investiga-
tion of its water-powers and had appointed a Water Power Com-
mission. Within a year and a half this Commission had obtain-
ed sufficient information to warrant the Legislature in author-
izing appointment of a permanent Commission (1920) consist-
ing of the Hon. E. A. Smith, Chairman, the Hon. L. A. Dugal,
Edmunston, and C. O. Foss, St. John. It had prepared plans,
under the advice of consulting engineers, for the development
of the Big Falls of the Lepreau, about 20 miles from St. John.
A little later it was discovered that the west branch of the
Musquash could be diverted into the east branch of the same
stream so that the waters of both could be utilized in one power
house. As this would produce much more power than the one
development on the Lepreau, and as it was 7 miles nearer St.
John, it was decided to proceed with this first.
The power requirements of St. John were expected to im-
mediately absorb the output of this development, making it
necessary to proceed with the development of one of the three
power sites on the Lepreau which totalled fully 12,000 horse-
power. After these two streams were harnessed, and the out-
put absorbed, there was the Magaguadavic, a few miles farther
away, which could be made to yield as much power as the Mus-
quash and Lepreau combined. The Commission stated posi-
tively that 8,000 h.-p. could be generated on the Pokiok, 37 miles
north of Fredericton, 8,000 more in one plant at the outlet of
the Shogomoc 40 miles north of Fredericton, and 12,000 on the
Tetagouche near Bathurst. In addition to these comparatively
small powers there were the Grand Falls of the St. John with a
maximum of 33,000 h.-p. without storage and a maximum of
75,000 with full storage provided. The Bathurst Lumber Com-
pany had, in 1921, a development nearing completion at the
Grand Falls of the Nepisiguit of 13,500 h.-p. Tabulating all
these the Province had in sight a total of 150,500 h.-p. There
were possibilities of 200,000 h.-p. all-told before touching the
great resources of the Bay of Fundy tides.
The progress Report of the N. B. Electric Power Commis-
sion was placed before the Legislature on Apr. 1st. Its forma-
tion was reviewed in detail and its conclusions confirmed by
Henry Holgate, the consulting engineer of the Commission,
before publication. Following his retirement, C. H. and P. H.
Mitchell of Toronto had been engaged and they, too, had ap-
proved the decisions. The details of the Musquash matter were
716 THE CANADIAN ANNUAL REVIEW
given in full and the necessity of a large storage capacity for
comparatively small power production emphasized ; various con-
tracts had been let and were dealt with in full, as was the situa-
tion in the projects under way, or in consideration. The ex-
Jenditure to date was $79,552. As in Halifax, the City of St.
ohn, during 1921, discussed — in a more amicable way, however
— the application of the Power question to its own interests. It
was advised in May of this year that an opportunity would soon
be available to buy from the Electric Power Commission about
10,000 h.-p. developed by the Province at Musquash, with cur-
rent ready for delivery in the autumn or early next year. The
question at once arose as to how the city could best distribute
to light and power users the current which it could buy at a
price much lower than the cost of developing power by the use
of coal.
Would it create a Civic distribution system or employ the
New Brunswick Power Company as a distributing agent under
an agreement binding the Power Company to pass on to the
consumer any saving which it made by having Musquash power
turned over to it at a price below its present cost of producing
current? The City had, meanwhile, received a Report as to the
local situation from H. E. M. Kensit, an Engineer, who dealt
fully with the N. B. Power Co. and stated that it cost the Com-
pany 2-8 cents per k.w.h. to generate its power or $59 per horse-
power per hour; that the average cost delivered to consumers
was 58 cents ; that the average price received, including the
Street Railway, was 61 cents and, excluding the Street Railway
\vas 855 cents; that the cost of maintaining the steam plant, as
a stand-by only, would be about $63,000 a year ; that under ex-
isting conditions the only possible saving from purchase by the
Company of Hydro-electric power would be in the cost of operat-
ing the power station. The business of this Company, according
to its 1920 Statement, was $1,038,560 of receipts, which included
returns from Street Railway, Light, Power and Gas ; the operat-
ing expenses were $871,917, the net earnings $70,920 with several
rather irregular dividends paid; on May 2nd, 1921, Percy W.
Thomson was appointed General Manager.
During the year Power development was largely advanced ;
it had behind it the Foster Government, the Power Commission,
the business interests ; in July a great number of men were rush-
ing to completion at Musquash two huge dams, as well as num-
erous smaller dams at different places in the area of supply, with
contracts which were let for a generating station and its com-
plex machinery, surge tanks and hydraulic turbines, wood-stave
pipe and steel towers, transmission cables and a receiving station
at Fairville with various other equipment which were required
by the end of the year. On Oct. 19 a Conference was held in St.
John addressed by Mr. Premier Foster, Hon. E. A. Smith, Mayor
Schofield, K. H. Smith, the Engineer to the Commission, and
others; it discussed at length the Hydro-electric development
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 71 7
and a distribution of power which the Commission was obliged,
by statute, to first offer to the City. The situation, as stated,
was that the Commission would be ready to deliver power in the
spring, and the estimated price to the City, as a carrying charge,
was about $200,000 per annum for an amount of power equalling
8,000 to 10,000 h.-p.
On this basis it was said to be costing the New Brunswick
Power Co. about $228,000 to develop 6,000 h.-p. by coal and
steam and^the chief issue was: "How to get the power to the
consumer." The Commission duly made its offer — to hand over
to the city 15,000,000 of the 21,000,000 kilowatt hours of energy
at a price of $183,210; a Report on this proposal was made by
the Mayor in association with three Engineers — W. H. Chace,
G. G. Hare and C. C. Kirby — which quoted certain figures and
outlined the various suggestions. The plan favoured by this
Committee was one under which the City and the Company
should unite in a contract with the Power Commission to pur-
chase the electric energy for distribution by the Company; the
latter to re-arrange its circuits, separating the lighting load
from the power load, and extending both classes of circuits to
serve available customers not now served; the prices of energy
delivered as light and power to be regulated or modified so as
to pass on to the customers the small saving to be had by the
purchase of Hydro-electric energy for the Company and the
economies affected by virtue of the growth of the load.
No decision was arrived at and C. O. Foss of the Commis-
sion stated later (Dec. 15) that the price of 1-2 set by the Com-
mission was the maximum figure ; that there were possibilities
of reduction and that the policy of the Commission was to sell
power at cost. On Dec. 21 another Conference took place of
all the interests concerned with the Manufacturers' viewpoint
presented by C. W. Brown, who claimed that an enormous horse-
power rate was being paid in St. John; that the Government
had invested $2,000,000 in the Hydro-electric project in order to
develop industries ; that a rate that would make it possible for
manufacturers to compete on even terms with those elsewhere,
in the matter of power costs, ought to be obtained.
The Prohibition developments of the year were very sim-
ilar to those of Nova Scotia. On Feb. 10 the Government stated
that a New Brunswick Board of Liquor Vendors had been ap-
pointed to take charge of the importation and wholesale dis-
tribution of liquor ; Hon. J. F. Tweeddale, lately Minister of
Agriculture, was to be Chairman and Martin McGuire of St.
John — recently in the wholesale liquor business — with A. F.
Bentley, CX-M.L.A. of St. Martin's, were the other two members ;
the Chairman was to give his whole time to his duties and the
others to act in an advisory capacity. The Board was organized
on Apr. 14, and Mr. Tweeddale stated that it had decided to
purchase standard brands of liquors rather than to adopt a
system of chemical analysis and certificate such as was in effect
718 THE CANADIAN ANNUAL REVIEW
in Saskatchewan ; stocks carried by wholesalers in the Province
would be taken over wherever possible. Headquarters were es-
tablished in Fredericton. On July 22 the Board announced the
scale of prices under which retail licensed vendors could fill
liquor prescriptions; the highest price for Scotch whiskey was
$5 per quart bottle, and this and other prices were uniformly
lower than the average amount recently charged by the retail
vendors.
The Legislature, on Apr. 5, passed, without division and with
little discussion, a Resolution moved by Hon. W. F. Roberts ad-
vising the Dominion Government of its formal request "that the
votes of the electors in this Province may be taken for or against
the following prohibition, that is to say : That the importation
and bringing of intoxicating liquor into this Province for bever-
age purposes may be forbidden." The existing Prohibition Act,
dating from 1916, and confirmed by a Referendum in 1920 was
severely criticized by Hon. J. B. M. Baxter, K.C. (Cons.) on Apr.
13. He complained of the heavy costs of enforcement ($60,-
000), deprecated the remission of fines in certain cases by Gov-
ernment intervention, declared the law too drastic in cutting
away the right of appeal from a defendant, and objected to the
treating of everyone accused as if he were a convict. The Hon.
J. P. Byrne, K.C., Attorney-General, defended the enforcement
of the law, described the difficulties and eulogized the work of
Rev. W. D. Wilson while Chief Inspector.
There was much abuse of the law and Mr. Wilson told the
Women's Temperance Union at St. John (May 26) that the busi-
ness had no right to exist in the Province ; that it was the duty
of those concerned to, on their part, prove the legality of the
traffic; that the export dealers were acting without any hint or
hope of a right to conduct their business and were neither li-
censed by the Province nor by the Dominion, nor were they act-
ing as accredited vendors. On July 17 American officers from
Van Buren and Portland made a large seizure of contraband
liquor at Van Buren, on the New Brunwick side of the St. John
River, and under authority of recent amendments to the Pro-
vincial law; at this time there was much rum-running on the
border with a number of actual battles between enforcement of-
ficers and contraband runners. On Oct. 10, New Brunswick
joined Nova Scotia, P. E. Island, Ontario, Manitoba, Saskatche-
wan and Alberta as a Prohibition Province ; it had followed the
others in abolishing the bar-room and the retail sale of liquor
as a beverage over the counter ; it had until now permitted im-
portation for private use; the vote was 41,436 in favour of
the existing Prohibition Act and in favour of Light Wine and
Beer 23,713. The women played a big part in the vote and, in
St. John, were estimated as one-half of those who went to the
polls ; Rev. W. D. Wilson was in charge of the Prohibition cam-
paign.
An incident of the year was the decision of Mr. Justice J. H.
Barry of the Supreme Court that the election of Messrs. D. A.
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 719
Stewart and Henry Diotte, supporters of the Opposition, to the
Legislature for Restigouche in the General Elections of October,
1920, was valid. Appointments were announced of Hon. L. A.
Dugal of Edmundston as a member of the Electric Power Com-
mission; of Hon. Arthur R. Slipp, K.C., a member of the late
Conservative Government, as Junior Judge of York, Sunbury
and Queens; of Mrs. A. C. D. Wilson and Mrs. A. W. Adams as
members of the Board of Theatre Censors ; of Robert Murray,
Chatham, as Judge of Probate, with the re-election of Rev. W. J.
Kerby of Moncton as G. W. P. of the New Brunswick Sons of
Temperance. Other incidents included the statement of Hon.
W. F. Roberts, Minister of Health (Feb. 14) that there were
several districts or sections in New Brunswick which were abso-
lutely without medical care either by physicians or nurses and
that some places were so situated that the majority of the in-
habitants were from 35 to 50 miles away from the nearest doctor ;
the decision of the Supreme Court of Canada (June 7) dismiss-
ing the appeal of the St. John and Quebec Railway in a case
which sought to establish the Railway as a public work of
Canada and to overthrow a Provincial Order-in-Council which
had vested the shares of the Company in the Provincial Govern-
ment and had ousted the Board of Directors from their office.
On June 15 there was an award of contracts (15,000 tons)
to the Minto Coal Operators' Association, for the first coal from
the Grand Lake coal areas of New Brunswick to be used on the
C. N. R. ; on the St. John Street Railway and in the Power and
Gas Works during June and July there was a strike, with the
despatch of R. C. M. P. to preserve order under Ottawa direc-
tions and at the urgent request of the Provincial Government
and the Mayor of that City; in July a Conference was held at
Sussex between Hon. Dr. Roberts, Dr. G. C. Melvin, Provincial
Health Officer, and various Boards of Health, as to existing con-
ditions and the Minister stated that $30,000 was being expended
on medical school inspection and the division of the Province in-
to five inspection areas with each group engaging a doctor for
the work. The Lieut.-Governor, the Hon. William Pugsley,
opened, on July 27, a new Nurses' Home connected with the
General Hospital and unveiled, also, a Memorial Tablet to Nurs-
ing Sister Alic^ Stammers.
Under Acts of the Federal Parliament and the Provincial
Legislature, St. John, on Aug. 1st, voted on the question of
placing the Harbour Works and management under control of a
Federal Commission, with strong opposition and a vigorous dis-
cussion developing into a final vote of 1,392 for the Commission
and 2,177 against. In July orders granting two public utilities
permission to increase rates were issued by the N. B. Public
Utilities Commission — the Citizens' Gas Co. of St. Stephen and
the Calais Water and Power Co. — and it also granted the N. B.
Telephone Co. the right to issue $664,000 of additional stock ; on
Sept. 3rd the St. John Exhibition was opened by the Lieut.-
720 THE CANADIAN ANNUAL REVIEW
Governor and that at Fredericton, on Sept. 17, by Hon. D. W.
Mersereau; a Conference occurred (Aug. 25) between the Gov-
ernment, the G. W. V. A., the Trades and Labour Council and
the Union of New Brunswick Municipalities as to unemployment.
On the 24th Mr. Premier Foster addressed the Union at
length on the financial situation and the essential points of Gov-
ernment policy: "Our educational system must be maintained,
even to the extent of increased allowances for our teachers. The
safety of the public must be secured by the repairs to thousands
of wooden bridges which are so prevalent throughout the Prov-
ince. Recent years have brought about, by reason of the revo-
lutionized system of travel in motor-cars, a demand for a higher
standard of road construction. This must be met, to at least
a reasonable extent. A larger measure of aid must be forth-
coming from the municipalities toward the up-keep of the
smaller bridges and by-roads which stretch out from the main
trunk roads into the rural communities, with contributions from
the cities and towns toward the upkeep of trunk roads leading
to the centres of population."
The Premier also declared that the Debt created for the
construction of Branch railways, "which preceding Governments
apparently forgot to provide any ways or means of meeting,"
must be faced to a total of $12,000,000 cash investment and $12,-
000,000 in value of lands granted. He added a reference to the
differences in methods adopted in making up assessments by
the various Counties and suggested that a Provincial Board of
Valuators be appointed to carry on this work in a systematic
and equitable manner, with rights of appeal against their de-
cision. The Convention approved of the policy outlined. The
Hon. Mr. Veniot followed this up with a definite statement that
the Government intended to transfer responsibility for the con-
struction and maintenance of branch roads to the municipalities
— leaving the highways or trunk roads still in the hands of the
Province. To secure the additional revenue thus required the
Convention asked for Municipal power to levy a special tax on
automobiles. At St. John, on Jan. 11-13, 1921, the 8th Annual
Convention of the N. B. Federation of Labour was held. It was
decided that henceforth the Legislative programme adopted each
year should be submitted to the Trades and Labour Congress of
Canada. Among the matters approved by the Federation were
the following recommendations:
1. The creation of a Provincial Department of Labour, with a
Minister of Labour, who shall be a member of the Executive Council of
the Government.
2. An amendment to the Workmen's Compensation Act providing
for improved rates of compensation and especially in the cases of de-
pendents.
3. An amendment of the Factories Act to provide for its applica-
tion to all industries, and further limiting the employment ages for chil-
dren and hours of labour.
4. The appointment of a Minimum Wage Board to improve condi-
tions of female workers and a Mothers' Pension Board.
03 >
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CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 721
5. An amendment of the Mining Act to enforce better conditions of
safety in the mines.
6. The passage of legislation to give immediate effect to the draft
Conventions and recommendations of the Washington Conference and
the League of Nations International Labour Organization.
7. Provision for old age pensions and relief for needy workers.
8. Examinations and certificates of competence for all drivers of
motor vehicles in the Province.
9. Proportional Representation in elections; Direct legislation
through the initiative and referendum; equal rights to women in school
districts and municipal voting and office-holding; property qualifications
for voting and holding office in municipalities to be abolished.
10. A higher assessment on lands held for speculation than on im-
proved land.
11. That School Districts be enlarged and consolidated where pos-
sible with increased pensions for teachers.
12. That it be made unlawful for the N. B. Electric Power Commis-
sion, or for any municipality supplied by the Commission, to sell power
to any private persons or corporation for distribution at profit.
13. That Immigration from Europe be restricted.
14. That night and Sunday work be abolished in bakeries as far as
practicable, and that 8 hours constitute a day's work.
Motions favouring Government ownership and control of
the Liquor traffic and a Referendum on importation of liquor in-
to the Province were negatived. J. E. Tighe of St. John was
elected President for 1921. The 8th Congress of Acadians
met on Aug. 17, at Church Point, Nova Scotia, to discuss
the general advancement of their people, 300 Delegates being
present ; one prevailing note struck, in the many addresses, was
an appeal for better instruction of Acadians in the French lan-
guage and a call for them to remain firm to their religious
faith and the preservation of racial identity. Many notable
visitors and Delegates were in attendance and addressed the
assembly, including Hon D. 5V. Landry, formerly a Provincial
Minister; Mgr. Phillippe Belliveau ; Judge Rivard of Quebec;
Bishop LeBlanc of St. John; Bishop Patrick Chaisson of
Chatham, N.B. ; Mr. Veniot, Minister of Public Works; Hon.
J. W. Comeau, Acadian representative in the Provincial Govern-
ment ; Guy Vanier, of Montreal, President of the Young Cana-
dian Catholics' Association.
Among the Resolutions passed were some of particular in-
terest. One of these urged the Federal Government to mark
and preserve all Acadian landmarks, and suggested the appoint-
ment of an Acadian representative on the Battlefields Commis-
sion; another urged that encouragement be given to the study
of problems in Agriculture, Industry, Foreign Trade, Trans-
portation, and that the Acadian people join Boards of Trade,
Canadian Club's and such organizations ; another declared that
the Acadians wished their co-citizens of the Maritime Provinces
and the rest of -Canada to feel that they were united with them
in lovalty to the country and in the wish to help, socially and
economically, in its general advancement and progress. Other
incidents of the Convention were the gift of ground by the Do-
minion Atlantic Railway at Grand Pre, for the erection of an
24
722 THE CANADIAN ANNUAL REVIEW
Acadian Memorial, and a message of fealty sent to the Governor-
General for H. M. the King.
Provincial Finances; Mr. Hetherington's Budget. The bal-
ance sheet of the Province for the year ending Oct. 31, 1920,
showed a Revenue of $3,100,548 and Expenditures of $3,004,200
with a surplus of $96,348 before charging certain Interest on
Bonds and other indebtedness of the St. John and Quebec Rail-
way; after this amount of $252,351 was charged there was a De-
ficit of $156,002. The chief items of revenue in the year were
Dominion Subsidy and other payments of $637,976; Stumpage
and royalties on Timber, Wild Land tax, Licenses, etc., $1,589,-
539; Taxes on Incorporated Companies, Railways, Motor
Vehicles, and Amusements, $491,942; Succession Duties $90,340.
The chief Expenditures were $344,082 on Education, $175,347
on Forest Service, $142,959 on Motor Vehicle Fund, re Roads,
$172,433 on Provincial Hospital, $811,810 on Public Works in-
cluding roads and bridges, $648,040 on Interest — other than that
of the St. John Railway. The capital Assets of the Province
were stated at $24,244,461, and included the value of the St. John
and Quebec Railway and Permanent Roads and Bridges ; the
capital Liabilities were the same and included $20,683,236 of
bonded Debt.
The Revenues were the largest on record and the St. John
Railway charges were due to the collapse, politically and fin-
ancially, of the Company organized some years before to con-
struct the Line ; the Canadian National was now operating the
Railway and turning over to the Government a proportion of
the gross receipts which, in 1920, amounted to $59,552. The Hon.
J. E. Hetherington, Provincial Secretary and Treasurer, in his
first Budget speech of Mch. 30, 192J, reviewed the above figures
and stated that economy would be the watchword of the Gov-
ernment; that they had decided it was inopportune to put into
effect any new taxes which would mean placing additional bur-
dens upon Provincial industries; they would, however, foster
industries which were productive of employment.
Interest charges on the above figures showed an increase
owing to the higher rates on renewal of Loans ; the estimate
for Immigration in the new fiscal year would be only $10,000
due to closing of the London Office and transfer of its business
to an official in the Dominion offices ; in Forest revenues there
had been an increase of 100 per cent, during the past year. He
spoke strongly of the necessity and benefits of improved roads
as complementary to a perfected transportation system of rail-
ways, waterways and highways; during 1920 the Liabilities
had increased by $1,499,931 but in connection with the St. John
and Quebec Railway they were enabled in the past year, by re-
funding transactions, to reduce its capital liability $445,591.
The Provincial bond issues of the year totalled $5,975,000,
which included $2,317,000 of short term issues re-funded; all the
Bonds were disposed of by public tender and brought good
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 723
prices. Dr. Hetherington, at this point, stated that during the
last year the Conservatives were in power, the Territorial rev-
enue was only $540,386 and the total revenue 'of the Province
only $1,580,419. Examination would show that the increase
in total revenue under the Liberal Administration had been $1,-
520,000 and, of this increase, $1,060,000 was from Territorial ac-
count and the balance from additional taxation which had not
borne heavily upon any section. For 1921 he estimated Rev-
enues of $2,895,856 and Expenditures of $2,886,526. These
figures would include a slight reduction in the vote for Agricul-
ture and an increase in the vote for Exhibitions and of $43,000
for Education — chiefly teachers' salaries ; an increase in the
amounts set aside for Sinking Funds and Roads; an estimated
decrease of $270,000 in Territorial Revenues with an increase in
Motor fees.
For 1920, the following comparative statement was of in-
terest, showing total Forest revenue and percentage increase
over 1919: British Columbia, $3,222,358—20 per cent, increase;
Quebec, $2,604,456—28 per cent.; Ontario, $2,684,843—20 per
cent.; New Brunswick, $1,387,005 — 100 per cent, increase. For
the same year and the same Provinces the statement of acreage
burned by Forest Fires was as follows : British Columbia, 390,000
acres ; Ontario, 350,000 acres ; Quebec, 290,000 acres ; New Bruns-
wick, 90,000 acres. The Budget debate was a very short one and
concluded on Mch. 31 without a division; the Farmers' party
did not discuss the subject at all. At the close of 1921 the
Financial statement for the fiscal year to Oct. 31 was issued and
showed Revenues of $3,105,279 and Expenditures of $3,371,072,
or a Deficit on current account of $265,792 ; adding the St. John
Railway interest, for the year, of $321,447 less $80,108 of share
in Railway earnings the Deficit became $507,132. The Revenue
was about the same as in 1920 and the chief increases of Ex-
penditure were on Education, which totalled $424,796, or an ad-
dition of $40,000; Forest services $249,522, or an addition of
$74,000; Motor Vehicle Fund $221,635, or an addition of $80,000;
Interest (apart from St. John Railway) $752,175, or an advance
of $104,000.
Legislation and Politics in New Brunswick. The 1st Ses-
sion of the 8th Legislative Assembly was opened on Mch. 17 by
the Hon. W. Pugsley, K.C., LL.D., D.C.I,., Lieut.-Governor, with a
Speech from the Throne which first referred to the world un-
rest and the immunity of this Province from its more serious
phases; described the agricultural production of the past year
as fairly satisfactory and congratulated the House on the Gov-
ernment's establishment of "one of the most up-to-date plants
for the crushing of lime-rock and the distribution of this nat-
ural resource as an aid to fertilizing the soil"; stated that the
Government intended "to encourage the flax industry and to
supply flax seed to those interested in its production" ; described
the very satisfactory progress made toward developing the
724 THE CANADIAN ANNUAL REVIEW
water-power on the Musquash River, where upwards of 8,000
horse-power would, in the very near future, be available for in-
dustrial and domestic purposes ; referred to the Highways policy
and its continuance under progressive conditions. The statement
was as follows :
Taking advantage of the Federal Aid Programme, contracts were
awarded for reconstruction of the main trunk roads in various sections
of the Province. This work was up to the standard approved by the
Council of the Federal Aid Board and was subject to inspection by engi-
neers of that Board, who expressed themselves well satisfied with the
work being carried on. Owing to the Federal grant the Minister of
Public Works was enabled to inaugurate the policy referred to at the
last Session of the Legislature — having in view the expenditure of Fund-
ed Automobile Fees on the principal branch roads leading to the markets
for disposal of agricultural products.
His Honour then dealt with the Government's Public
Health policy and noted that its Department of Health had been
"carried on with assiduity" and success. He intimated legisla-
tion to aid recruits in the Teaching profession at the Normal
School by loans when required for completion of studies ; re-
ferred to the Maritime Provinces' claim for more equitable fin-
ancial arrangements with the Dominion, to the importance of
preserving Provincial rights and to the question of Railway
rates ; stated as to the St. John and Quebec Railway that it had
failed to become a part of the Transcontinental or to bring export
traffic to St. John or to realize receipts equal to the Interest de-
mands and promised legislation for funding amounts advanced
to the Railway re Interest. A. Allison Dysart, member for Kent
since 1917, was elected Speaker of the new House; the Ad-
dress was moved by L. Murray Curren and Auguste Bordage
and, after considerable debate, was passed without division. The
Hon. J. B. M. Baxter, K.C., acted as Leader of the Conservative
Opposition ancj, later in the year, became a member of the ^
Meighen Government at Ottawa ; A. C. Fawcett of Westmore-
land was elected Leader of the United Farmers' Party in the
Legislature ; with the Judicial decision awarding the two Resti-
gouche seats to Messrs. Stewart and Diotte, the standing in the
House became 24 Liberal with 4 Independents from Northum-
berland supporting the Government, and against it were the
Conservatives, Farmers and other Independents totalling 20.
On Mch. 30 Mr. Premier Foster introduced the Valley Rail-
way Bill. He explained that it provided for the funding of
Debts incurred during construction of the road and including
$134,449 paid for Interest during construction, $42,000 outstand-
ing on Oct. 31, 1920, for capital expenditure and $73,000 needed
to clean up outstanding accounts ; that the maximum amount to
be^ bonded under the first clause of the Act was $250,000 with a
suit pending against the Bank of British North America for
$33,000 and claims not yet arbitrated upon totalling $25,000;
that it provided for the funding of the net Interest amounting
to $252.351 and for the balance of three years' interest at the
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 725
rate of $250,000 per year, or a total of $750,000 up to the end of
1922. He said that the time for construction of the Line from
Centreville to Andover would expire on Dec. 31, 1921, and the
agreement with the Dominion Government for a Subsidy at the
same time. Under this Bill it was proposed to extend the time
until Dec. 31, 1923, in case something arose which might make
it necessary to extend the road. With respect to running rights
from Westfield to St. John, he had hoped the Dominion Govern-
ment would make the necessary arrangements, but negotiations
had been carried on without result. Reference was made to the
rental paid the C. P. R. for operation, and for which the Pro-
vincial Government wa-s responsible, with $90,000 as the annual
amount ; he had sought and obtained a modification in terms
which brought the total down to $35,000 per annum. The Bill
passed in due course.
Hon. Mr. Veniot carried a measure relating to Storage
waters on rivers, streams, and lakes, and providing that no dam
or work which impounded water could be created without the
approval of the Government ; in the case of dams already in ex-
istence, it would be necessary to prepare plans and submit them
to the Government ; if that was not done the Minister of Lands
and Mines would have power to prepare the plans at the ex-
pense of owners and, if not approved, the dams would be de-
stroyed. Mr. Veniot also carried a Bill providing power to bor-
row $600,000 for the completion and construction of Permanent
and other Bridges with a list of 79 under construction and 104
contemplated; Hon. C. W. Robinson amended the Forest Fires
Act so as to make it more effective and to deal with the issuing
of permits, the liability of owners of adjoining land, the matter
of fighting fires on public as well as private lands ; it provided
that every stream-driving crew should have a foreman, whose
duty it would be to look after the fires.
The Game Act was largely amended so as to give informants,
as well as defendants, a right of appeal ; to establish a close sea-
son for Beaver with permits required from the Minister of Lands
and Mines ; to prohibit at certain seasons and to regulate at
others the hunting of caribou ; to establish close seasons for all
kinds of game with hunting licenses required and penalties fixed
for violation ; to provide, in the same way, for Fox protection
for taxing Fur dealers with $50 license to non-residents and
$10 to residents ; to require yearly reports from fur-farmers to
the Minister; to authorize establishment of game refuges with
regulations and protection ; to regulate guides under certifi-
cates, and to make heads of lumbering establishments, etc., re-
sponsible for offences against the Act by employees; to issue
bird-licenses to hunters with a fee of $15; to establish or amend
many licenses, fees, and penalties and to create a host of minute
regulations for protection of game and defined duties for War-
dens and other officials.
The Hon. J. P. Byrne amended the Schools Act to permit
Trustees, authorized by School meetings, to borrow money to
726 THE CANADIAN ANNUAL REVIEW
an extent not exceeding 15 per cent, of the assessable property
in the district and to allow the Chief Superintendent to allot
$100 to districts which made provision for retarded pupils, with
$100 to teachers who took special training for the instruction of
such pupils. Mr. Byrne also had a measure amending the Act
to regulate Public Utility companies and providing that shares
should not be issued without the consent of the Board of Com-
missioners; the Public Utilities Board Act was also amended
to compel returns from all Companies under specific penalities
with a yearly return from the Board to the Government.
Mr. Veniot's Motor Vehicles Act of 1920 enabling the Gov-
ernment to borrow $800,000 on automobile fees was amended
to more fully legalize this borrowing at the rate of $200,000 a
year — including the past year; the Probate Court Act was
amended to give the Judge certain additional powers ; the High-
way Act was amended to permit the Supervisor to take from
the seashore gravel, etc., required for use on any highway with-
out consent of riparian owner and to authorize the Governor-
in-Council to make rules and regulations for the use of High-
ways ; the Act relating to Highways under Federal Aid was
amended and authorized the Government to borrow $350,000 in
any one year and not to exceed the sum of $1,750,000 spread
over a five-year period — retroactive also to Apr. 24, 1920; the
Board of Censors Act was amended to eliminate the right of
appeal from its decisions. The Corporations Tax Act was
amended to tax Telegraph companies one per cent, of entire cash
receipts collected within the Province and to declare that taxes
or licenses by cities, towns, and municipalities on Banks and
other corporations should not be more than the sum payable at
the time the Act was passed. Hon. Mr. Mersereau had a Bill
amending the Act for protecting sheep from dogs by empower-
ing the municipalities, in cases where the Fund was more than
sufficient for the purpose, to make use of it for other purposes.
The Law Library Act and the Judicature Act were amended in
details. Hon. Mr. Michaud had a Bill relating to the superan-
nuation of persons employed in the Government service of the
Province which was held over.
The Premier, on Apr. 14, introduced a Bill respecting ad-
ditional remuneration for members of the Executive Council,
providing increases for all Ministers holding portfolios, and
drawing $2,100 each, in addition to the sessional indemnity of
$1,000; no increase was provided for the Premier and the pro-
posed scale was $3,500 each for the Attorney-General, the Min-
ister of Public Works and Minister of Lands and Mines, with
$3,000 each for the Provincial Secretary-Treasurer and the Min-
isters of Agriculture and Health. It passed after opposition
from Conservatives and Farmers and the first division of the
Session, which showed 23 for the Government and tfie Bill and
16 against. Mr. Veniot carried a measure removing Ferries
subsidized by the Government, from Municipal control ; Hon.
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 727
Mr. Roberts amended the Public Health Act so as to make pro-
vision for the collection of funds from municipalities which had
failed to meet the estimates submitted by District Boards of
Health. The Minister's speech was a valuable statement of the
importance of this subject — covering Medical School inspection,
general sanitation and social hygiene; in the latter matter he
referred to venereal diseases and their prevalence in the Prov-
ince.
Another measure dealing with Optometry practice forbade
the peddling of glasses and provided that those engaged in the
work of fitting eye-glasses must be properly qualified. There
was an Act providing for the sale of the old Government House
property to the Federal Government for $50,000; it provided,
also, that the interest from the Trust Fund thereby created
should be voted to the Lieut.-Governor to assist him in main-
taining an official residence at Fredericton, as the capital of the
Province. The Attorney-General carried a careful and elaborate
Partnership Act containing definitions, laws of relationship one
to the other, liabilities, profits, property, dissolution, etc. ; other
legislation included minor amendments to the Housing Act and
the Education of the Blind Act; the City of St. John School
Board was authorized to issue debentures, and Moncton, St.
Stephen, Woodstock and Fredericton City authorities were
given the same power; the County Court Act was elaborately
amended as to Procedure and practice, appeals, Fees, damages,
summons, costs, duties of Judges, jurisdiction in debts not above
$400, rules, etc.
The Fire Protection Act, 1921, required licenses and yearly
Fire Insurance Company statements ; authorized the appoint-
ment of a Provincial Fire Marshal and the creation of a Fire
Prevention Board; ordered the appointment of local assistants
and officers and penalties for opposing action of the Board or its
officers. The Forest Fires Act was amended to make com-
pulsory the extinction of Camp fires, to impose penalties for
refusal to assist in preventing fires from spreading and defining
the duty of assistance in fighting fires ; the Provincial Hospital
Act regulated its maintenance, the Motor Vehicles Act amend-
ments provided special licenses for owners of Motor trucks or
Vehicles used for commercial purposes and the Cinematograph
Act was amended to increase the Censors so as to appoint 2
women.
After prolonged discussion (Apr. 6) and various objections
against extension, the Bill granting a longer time to the Grand
Falls Power Co., Ltd., to obtain capital and proceed with the de-
velopment of the water-power at Grand Falls, was passed. It
was claimed that the Company, organized in 1911, was backed
by strong financial interests both in Canada and the United
States ; that after organization it started to gather in important
interests of private parties, and also rights held by the Federal
Government ; that it was not until 1914 that arrangements had
728 THE CANADIAN ANNUAL REVIEW
been completed so as to make possible the beginning of opera-
tions and then the War broke out; that the Legislature had, in
1916, extended the Company's charter until one year after the
declaration of Peace ; that an extension of its rights tor a period
of two years from the first of May, 1921, should be given. To
meet the objections made and the demand of the people at
Grand Falls for development, the Bill included a proviso that if
action was not commenced at the end of two years to the extent
of $150,000 the Government could declare all rights forfeited.
Resolutions passed during the Session included one which
recapitulated the arrangements as to the National Transcon-
tinental and the Valley Railway, reviewed the costs and difficul-
ties of the latter undertaking, pointed out that other Provinces
had guaranteed Railway bonds of hundreds of millions in value,
and declared (Apr. 15) that "in the opinion of this House, the
Dominion of Canada should continue its policy and acquire the
St. John and Quebec Railway and relieve the Province of the
liability incurred for the construction of the same." In moving
the Resolution, Mr. Premier Foster said: "New Brunswick is
particularly interested in the Railway situation, as very many
of the Provinces have been relieved of obligations for interest
and principal which they guaranteed to assist in the construc-
tion of railways. We think the same treatment should be meted
out to New Brunswick, and this Province not be compelled to
pay interest on between six and seven million dollars which we
expended upon the Valley Railway. The debts and liabilities of
the Canadian Northern taken over by the Dominion Govern-
ment, amounted to $473,055,018, and of this $214,922,310 was
spent in the Provinces of the Dominion outside of New Bruns-
wick and P. E. Island." Mr. Baxter, Opposition leader, second-
ed the motion and it passed unanimously.
The Hon. Fred Magee presented a Resolution (Apr. 7) urg-
ing upon the Federal Government the policy of limiting appli-
cation of the Preferential tariff agreement with the British
West Indies to goods imported through Canadian ports ; it was
supported by the Leaders of the Opposition and the Farmers'
group and passed unanimously. The motion of J. L. Peck, call-
ing upon the Legislature to give land owners in Albert and
Westmoreland Counties the right to oil and natural gas and
shale, which was claimed by the Crown, caused a prolonged
discussion in the Legislature on Apr. 7 ; it was withdrawn when
Hon. Mr. Foster assured the House that an investigation into
the matter would be had and a report made at the next Session.
An elaborate Resolution (Apr. 15) was also passed dealing with
the historic and general situation of the Province in relation
to the Intercolonial and declaring, finally, that "the faithful ob-
servance of the terms and conditions of the compact of Con-
federation, and a generous national spirit, require that the con-
venience, accommodation and welfare of the people and of the
industrial interests of the Maritime Provinces be steadily kept
I
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 729
in view as the primary purpose to be achieved in the administra-
tion of the Intercolonial Railway ; and that such Railway having
been constructed to serve a special purpose should be adminis-
tered upon principles adapted to effect such purpose and as a
separate system giving such advantages in freight and other
rates to the people of the Maritime Provinces as will afford
them access to the markets of other Provinces of the Dominion
upon such terms as will admit them to fair competition." The
House was prorogued on Apr. 15.
Educational Interests of New Brunswick. The annual Re-
port of Dr. W. S. Carter, Chief Superintendent of Education in
the Province, (June 30, 1921), stated a record enrollment of
pupils, a record percentage of attendance, a record of attendance
at the Normal School. The figures dealt with 1st and 2nd Terms
in the school year and showed the number of Schools, respective-
ly, as 1929 and 1973; the number of Teachers as 2,062 and 2,142;
the number of pupils as 64,228 and 68,092 and the total atten-
dance as 73,712; the average number of pupils present daily as
48,329 and 50,388, respectively. The popular subjects of study
in the Common Schools were Morals, Physical exercise, Reading
and Spelling, Drawing, Writing, Arithmetic, Health and Nature
lessons; in the High Schools they were English Language and
Literature, French, Geometry, and Algebra, History and Geog-
raphy and Botany. The average salaries continued to increase
and the totals in a ten-year period were as follows:
Class of Teacher 1911 1921 Increase
Grammar School $1,050.80 $2,007.69 $956.89
Superior School 692.49 1,281.24 588.75
First Class, Male 677.26 1,524.68 847.42
Second Class, Male 349.23 778.60 429.37
Third Class, Male 270.62 569.91 299.29
First Class, Female 402.38 965.46 563.08
Second Class, Female 294.50 716.16 421.66
Thud Class, Female 228.99 577.05 348.06
An incident of the year was the urgent request of the Uni-
versity of New Brunswick for additional aid to what was, prac-
tically, the Provincial University. In 1907 a Provincial Act
had been passed granting $5,000 a year aid to the University;
in 1911 this was increased to $17,000, in 1913 to $20,000 and in
1919 to $25,000. The appeal was based upon the costs of man-
agement and need for Extensions; from Mount Allison (Metho-
dist), and St. Joseph's (Catholic) Universities came a request
for similar grants on the ground that those institutions had been
"rendering similar service to Higher Education without aid
from the public treasury, and that their financial supporters
would be obliged to contribute through the public revenues to- t
ward any grant made to the University of New Brunswick."
Mr. Premier Foster, in his reply to a delegation on April
12, stated that in these days of diminishing revenues, it was ab-
solutely impossible for either of these applicants to receive aid
from the Provincial Treasury: "The University of New Bruns-
wick is just as much a portion of the educational system of the
730 THE CANADIAN ANNUAL REVIEW
Province as the public schools, and as such is entitled to and has
previously received aid from the Government." Finally, Mr.
Foster told the Legislature on Apr. 15 that the Government
could not see its way to give the grant asked for by the Pro-
vincial institution ; a policy would, however, be worked out and,
meanwhile, as a State institution, the Government would meet
its current deficit of $6,000. In this general connection Dr. J.
D. Logan, Lecturer on Canadian Literature in Acadia Univer-
sity, told the Canadian Club at St. John (Jan. 18) that the waste
of brain power in the Maritime Provinces was excessive in Col-
leges and Industries and Commercial enterprises alike ; that
salvation was to be found in the cultivation of an aristocracy of
intellect from a combination of classes supporting the Univer-
sities.
The Universities of the Province. The University of New
Brunswick at Fredericton suffered a decrease in attendance from its
record of 181 in 1920, to 139 students in 1921 — a large number of returned
soldiers having graduated the previous year. In all 25 degrees were
conferred at the annual Encoaenia on May 12, 1921, including 6 degrees
of M. A. and 16 of B. Sc. ; the honourary degree of Doctor of Law was
conferred upon Lord Beaverbrook, '"in absentia," and Hon. F. B. Car-
veil, Chairman of the Railway Commission, with one of M. Sc. upon
William Macintosh, Curator of the Natural History Society's museum
at St. John. On Nov. 22, a deficit of $5,550 was reported by the Fin-
ance Committee, and a new scale of fees for the various courses at the
University were considered; the Senate decided that the former rate of
fees would hold good for the term but, beginning with 1922, a higher scale
would be in effect. A petition was received asking that training in the
Canadian Officers' Training Corps be made voluntary, and not compul-
sory, for under-graduates in the 1st and 2nd years. The students point-
ed out that other Universities either did not have C. O. T. C. units or
had them on a voluntary basis — the matter was left over to next year.
Mount Allison University, at Sackville, instituted a campaign in
February, 1921, following a Resolution of the St. John Methodist Con-
ference on Aug. 31, 1920, to provide funds for the erection of buildings
and to secure endowment to increase the salaries of the teaching staff;
despite the effort being made at an unfavourable time, when financial
reaction and business uncertainty conspired against success, over $250,-
000 was subscribed and this provided for a general increase of salaries
to Professors of from 20 to 25 per cent. Moreover, during the College
year, chairs were endowed by S. M. Brookfield, Joseph Allison, and
by Col. Frank B. Black, in memory of the late Joseph L. Black and these
contributed considerably to the material benefit of the institution. A
question of importance came to a head on Apr. 12, when representa-
tives of Mount Allison and the University of St. Joseph's College met
the members of the Government and urged that their institutions be
given grants equal to any additional amount voted to the University of
New Brunswick. It was set forth that these Colleges were giving a
service to higher education similar to that of the University of New
Brunswick, while St. Joseph's representative affirmed that its principal
educational work was for people, who, owing to language and other
circumstances, could not benefit by the assistance afforded to any other
institution. Rev. L. Guertin, President of the University of St. Joseph's
College; Rev. George Steel, Chairman of the Regents of Mount Alli-
son • ,Rev. Dr. B. C. Borden President of Mount Allison and Hon. Josiah
Wood, Treasurer of Mount Allison University, as the representatives,
signed this petition which was presented to the Government. The num-
ber of students in attendance for 1920-21 was 265, of whom 29 received
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 731
graduate degrees in Arts, and 22 certificates of Engineering; at the
Theological convocation on Apr. 11, 6 students graduated.
The United Farmers of New Brunswick in 1921 had a year
of activity in both economic organization and politics. The 3rd
annual Convention met at Fredericton on Feb. 1-2 and was
the largest ever held in its history; 200 delegates from 141 lo-
cal branches gathered for the meeting; political issues were
fearlessly discussed and old party ties denounced with a spirit
of agricultural fraternalism dominant. Following a brief ad-
dress by President T. W. Caldwell, M.P., the Secretary-Treas-
urer, C. Gordon Sharpe, presented his Report with the impor-
tant announcement that their Association had linked up with
the Canadian Council of Agriculture. In reviewing the year's
work, he noted that, through the Foundation Fund, several
Counties had been organized despite some opposition to the
subscription of $10 required from each member for this Fund; he
added that if the fees had been all paid in, the total would rep-
resent 10,000 members ; he urged the need for regular and edu-
cative meetings and more voluntary effort.
The Financial statement showed a total revenue of $8,711
and expenditures of $8,311, including $599 charged as Campaign
fund. William Irvine, the Provincial organizer, with others,
spoke against the organization of a political machine until they
had strengthened the local branches, made each meeting an
educational success and organized every parish. F. G. Calder,
the representative of the fishermen of Charlotte County, point-
ed out the advisability of co-operation between the farmers and
fishermen; urged the conduct of a wide educational campaign;
and suggested the elimination of unnecessary middlemen who
forced the Fishermen to pay from 50 to 75 per cent, more for
farm produce than the Farmers received for it and vice versa.
The second day was chiefly occupied with the discussion of the
Provincial platform which was dealt with clause by clause, and
passed exactly as prepared by the Committee with the exception
of one word. It was, in brief, as follows :
1. That Election laws be made and administered to eliminate
bribery and that a uniform ballot be provided.
2. That the Patronage system be abolished and competency count
in appointments.
3. That the Provincial road policy be development of County roads,
in connection with Trunk roads to transportation centres, so as to en-
sure facilities for marketting products.
4. That manufacture, importation and sale of intoxicating liquors
in the Province be entirely abolished.
5. That a complete and reliable system of Crop statistics be estab-
lished, and prompt reports given to assist farmers in securing the best
markets.
6. That well-equipped Abattoirs be established in the Maritime
Provinces as essential factors in the development of live-stock.
7. That a systematic method for thorough protection of Forests,
from fire and too close cutting, be maintained; that stumpage on Crown
Lands be based on the market price for finished products, and that
stumpage rates be not less than $5 per thousand.
732 THE CANADIAN ANNUAL REVIEW
8. That the Hydro-Electric policy should develop the water-powers
of the Province whenever the potential consumption would ensure a
revenue to meet the interests and maintenance charges of the capital
invested; that no water-powers be allienated ; that water-powers being
held out of use by private parties should revert to the Province unless
developed; that Electric energy be made available to all persons, rural
as well as urban, on equitable terms.
9. That a system of Co-operative Credits be established.
Trade and Tariffs — the vital principle of the Western
Farmers' platform — were not mentioned. At this meeting the
6 farmer Members of the Legislature were present and entered
into the discussion. The clause referring to forests came in for
criticism on the ground that too close cutting was going on and
causing injury to timber, also that individuals were getting rich
at the expense of the Crown Lands, and the public was being de-
prived of revenue it needed. President Caldwell led a discus-
sion on the question of Rural Credits and the workings of the
policy in other Provinces, and urged that the plan maintained
in Manitoba should be incessantly sought after in New Bruns-
wick. As to the official organ of the body, The Farmers' Guide,
G. Grassie Archibald reviewed the difficulties met with, and
asked from the farmers a more interested support. He charged
that the regular press was unfair to the Farmers; that reports
of the Convention were distorted to bring disrepute to the or-
ganization and its aims ; that the newspapers were using insid-
ious propaganda and the only real truth for the farmers would
be found in the official newspaper. It, therefore, deserved their
support.
Major G. S. Kinnear, of Sussex, appeared before the Con-
vention on behalf of the Milk producers of King's County, and
outlined a prospective distributing scheme for the City of St.
John. He said there would be no trouble in raising $100,000
for such a plant. R. W. E. Burnaby, President of the U. F. O.
and the Canadian Council of Agriculture, delivered an address
but kept his remarks to the work and policy of the latter organ-
ization, which, he declared, was the go-between of the Farmers
with such corporations as Railways, Telephone Companies and
similar bodies; incidentally, the majority vote was in the hands
of the East and no Resolution could go through except by unani-
mous vote. He deprecated the fuss and fury over the high tariff ;
purification was needed in public affairs, and there was no
one in sight for the effort but the Farmers' party. On Feb. 3rd
politics came to the fore and it was decided to place a candidate
in the field to contest the forthcoming bye-election in York-
Sunbury. A large number of Resolutions were introduced and
the following were passed declaring:
1. That no increase in Sessional indemnity to Local or Federal mem-
bers should become effective until confirmed by an Election and that
all members now elected be instructed to reduce indemnities.
2. That the Government should enact legislation for securing the
new^lands of the Province for the benefit of the people.
3. That the N. B. Telephone Co. should be compelled to extend their
service to any section of the Province when signed applications from
CONDITIONS AND GOVERNMENT IN NEW BRUNSWICK 733
two persons for every one mile along the line of the proposed extension
were received, and that all telephone charges for the same kind of ser-
vice should be uniform in all portions of the Province.
4. That the United Farmers is an Industrial group, haying a par-
ticular part to play for its own interests ; that it should remain such and
unite only with such groups as will assist in securing its ends; that its
Legislative representatives be instructed that there should be no per-
manent alliance with either of the old Parties.
5. That Farmer members elected to the Legislature be permitted
to carry on the business of the people who elected them, and not be
compelled to bow under the yoke of the Patronage system.
This last Resolution, though carried, evoked criticisms from
the members of the Legislature in attendance, who did not de-
sire to have their action in the House so definitely controlled.
A Resolution pertaining to the Recall was referred back to the
local branches for further consideration; it proposed a plank
in the Platform to the effect that a petition, with 25 per cent,
of United Farmers signing it, should be a notice to the Member
that he must resign his seat. The officers for the ensuing year
were elected: President, Thomas W. Caldwell, M.P. ; 1st Vice-
President, J. F. Reilly, Melrose ; 2nd Vice-President, John Inch,
North Keswick; Secretary-Treasurer, C. Gordon Sharpe. On
Mch. 12, the Board of Directors met in Woodstock, to consider
matters of organization and social betterment. The most im-
portant business was a Resolution addressed to the Government :
(1) That the Legislative Assembly of the Province should increase
the annual Provincial grant to the University of New Brunswick to
$50,000; (2) that it should provide $10,000 for a public Extension Library
with books on practical agriculture, on social, economic and labour
questions of the day; (3) that it should make a special grant of $65,000
to assist in the erection of a proper and fitting Memorial building for
the University of New Brunswick.
A thriving off-shoot of this organization was the United
Farmers' Co-operative Co., Ltd., which, while it only commenced
operations on Sept. 9, 1918, had at the end of 1920 an authorized
capital of $299,000, of which $268,000 was paid up. The member-
ship had then passed the 4,500 mark ; 23 stores were in operation
in various parts of the Province ; the deposits in the Central
Offices exceeded $100,000 a week. The system of business was,
originally, a retail supply store for members of the organization,
to whom dividends, as well, were paid; later there developed a
Farm Produce Branch through which the Company handled pro-
duce on a brokerage basis. Under the Constitution each local
branch was made responsible for its own profits and losses, the
idea being to reward local loyalty; all these were under the
supervision of a Eoard consisting of one Director from each
Branch, elected at the annual meeting of the shareholders ; from
this Board the officers and members of the Executive Commit-
tee were chosen and those in office at the beginning of 1921
were: President, H. T. Rogers, Northampton; 1st Vice-Presi-
dent, W. S. Poole, St. Stephen; 2nd Vice-President, Scott Mc-
Cain, Florenceville ; Secretary-Treasurer, Mrs. C. A. King; Gen-
eral Manager, S. H. Hagerman.
734
THE CANADIAN ANNUAL REVIEW
Events and
Conditions
in Prince
Edward
Island dur-
ing 1921.
This garden Province, with its small, rich areas,
its beautiful scenery and prosperous people, had,
in 1921, experiences similar in form though not in
force to those of other and greater Provinces. Its
total Agricultural wealth, according to Federal es-
timates, was $75,491,000 and, as its population by
the Census figures of this year, was only 88,615, it
will be seen that every man, woman and child averaged nearly
$1,000 in resources; as a matter of fact, the people were chiefly
rural — 69,522 to 19,093 urban — and there were few industries.
There were the usual decreases in values of Agricultural produc-
tion; the total crop production was $14,202,970, which included
Spring Wheat valued at $573,000, Oats at $2,560,000, Barley at
$110,550, Mixed grains at $393,520, Potatoes at $2,684,600, Tur-
nips at $1,336,400 and Hay at $6,455,200. Oats decreased $1,000,-
000, Potatoes $1,300,000, Hay $1,400,000. Horses in the Island
numbered 31,311 in 1921, Cattle 138,195, Sheep 131,763, and Swine
42,447; in values horses (according to Federal figures) were
worth $2,637,000, Cattle $3,861,000, Sheep $654,000 and Swine
$688,000 or a total of $7,840,000 with a decrease in the year of
$4,300,000. Compared with preceding years the gross agricul-
tural revenue of the Province in 1921 was as follows and it also
illustrates the deflation in prices :
Products
Field Crops
Farm Animals
1918
$16,278,000
1 772 000
1919
$22,367,000
2 315 000
Wool
296,000
370,000
Dairy Products
.. .. 1,600,000
2 231,000
Fruits and Vegetables
300 000
300000
Poultry and Eggs
720,000
720,000
Fur Farming
833 000
833 000
1290
$18,530,000
1,682,000
185,000
4,102,000
300,000
810,000
767,000
1921
$14,203,000
1,059,000
98,000
4,102,000
300,000
990,000
679,000
Total..
$21,799,000 $29,136,000 $26,376,000 $21,431,000
In Fur farming the Island headed the list of Canadian Pro-
vinces with, according to the Dominion Bureau of Statistics,
(1920) over one-half of the total number of 306 Canadian fur-
farms, with Foxes valued at $3,018,870 ; there were 4,000 pairs of
breeding animals and the return from pelt sales ran to $1,000,-
000 with $500,000 more for live animals sold abroad ; the effort
to recover from the boom days of 1913-14 and to place this busi-
ness on a sound basis was still proceeding with the Charlotte-
town Silver Fox Co., Ltd., Silver Foxes & Furs, Ltd., and Rogers-
Payton Silver Black Fox Co., Ltd., as, probably, the best-manag-
ed of surviving institutions. The Fisheries of the year showed
a total value of $924,529— a decrease of $784,194 or 45 per cent. ;
lower prices were the chief of the reasons involved, and Lobsters
the main element in the loss, with a product of 31,155 cases, in
1921, worth $634,744 compared with 40,322 cases valued at $1,-
381,477 in 1920; the average value of canned lobster in 1921 was
$20 and in 1920, $34 per case. The total value of imports was
$1,248,256 and exports, $593,013 for the period ending Mch. 31,
The Government of the Island was Liberal and the result
of a sweeping victory in 1919, when Hon. J. H. Bell, K. c., became
EVENTS AND CONDITIONS IN P. E. ISLAND DURING 1921 735
Premier with a majority of 24 to 6; the Hon. C. G. Duffy was
Speaker of the Legislature. The Public Accounts for the year
of Dec. 31, 1920, showed Ordinary Receipts of $706,476 and Or-
dinary Expenditures of $659,516; there were special receipts of
$42,182 and special expenditures of $85,890 with a net Surplus
over all of $3,200. The chief items of revenue were Dominion
Subsidy $372,181 and Land and Income Taxes of $188,591 ; the
chief expenditures were $211,547 on Education, $135,157 on
Public Works, $120,166 on the Falconwood Hospital and $61,140
on Highways. The Liabilities of the Province were $1,228,822
and Assets $26,106, but it was claimed that the Island had an
offset of over $800,000 standing to its credit with the Govern-
ment of Canada at Ottawa.
The Hon. J. H. Bell, K.C., as Provincial Treasurer, delivered
his Budget Speech on Apr. 6 and first referred to the construc-
tion of 60 miles of roadway under the Federal Highways Act at
a cost of $100,000 and without borrowing money for the pur-
pose r stated a surplus of $3,253 as compared with the preceding
Government's deficit of $253,000 and mentioned uncollected but
collectible 1920 taxes of $128,000 and unpaid Government ac-
counts of $15,000 with a Debt reduction of $22,612; specified the
additional and large payment to Teachers of $80,000, the fixing
by statute of a minimum wage for Teachers, the provision that
every district should pay a proportion of the teacher's salary
and the establishment of an Agricultural Technical School with,
also, provision for the medical inspection of schools and teach-
ing of Music and Singing at the Prince of Wales College.
Mr. Bell reviewed the general policy of the Government and
its refusal to operate or carry on the Dalton Sanitarium be-
cause of the expense of $100,000 a year; its refusal to spend
$1,200 a year or indeed, anything,upon the maintenance of Gov-
ernment House ; its practice of having all contracts put up for
public tender and its economical change in the management of
Falconwood Hospital ; its Taxation principle that every man
should share in the burden of government and pay a tax whether
he owned property or not. This policy of a graduated Income
Tax was, he explained, a system under which the smaller in-
comes were exempt or lightly taxed and the larger incomes
more heavily burdened. The larger the income the higher the
rate. The man with an income of $500 only was exempted — the
man with $5,000 income would pay 4 per cent, or a $200 tax. The
Opposition, he claimed, had assented to this principle as well as
to the fact of $750,000 of revenue being necessary. He added
that: "If a man's wealth consisted of personal property — as
goods in a store — this personal property should be taxed just
the same as if the wealth were invested in a farm."
It may be added that in consequence of its high credit
the Province was enabled to sell in October, 1921, $100,000
10-year, 6 per cent, bonds for Highway improvement at 99-199,
which were the highest prices obtained for Government bonds
736 THE CANADIAN ANNUAL REVIEW
for the year, up to that time, in Canada. The Hon. C. W. Cros-
by, Commissioner of Public Works, reported as to 1920 the con-
struction of minor highways and bridges and new contracts
made; the Hon. W. M. Lea, Commissioner of Agriculture, and
Treasurer, reported 1920 as a successful year for the farmer,
but his opinion of 1921 is not available at time of writing ; R. H.
Rogers, Chief Superintendent of Education, reported for 1920,
454 schools and 580 departments, 17,354 pupils enrolled, a daily
average attendance of 10,991 and a total expenditure on Edu-
cation of $v342, 648 of which $211,618 was by the Government and
$131,030 District collections.
The Island Legislature was opened on Mch. 10th by His
Honour Murdock MacKinnon, Lieut.-Governor, with a speech
from the Throne, which began by welcoming Lord Byng of
Vimy to Canada and referring, with gratification, to the Wash-
ington Conference and the Anglo-Irish Treaty. His Honour
then referred to the Government's Road policy under which it
had, in the past year improved 180 miles of public highways and
replaced 250 wooden bridges by permanent concrete structures ;
stated that Education had made substantial progress with larger
salaries to Teachers and an extension of a course in teacher
training at the Prince of Wales College and Provincial Normal
School together with very successful School fairs and excellent
products shown by the children; mentioned the taking over of
a brick and tile plant at Richmond by the Government, and im-
provements in the Dairy herd at Falconwood with, also, great
progress at the new Agricultural School where attendance had
doubled and further modern equipment been provided; stated
that the Potato Growers' Association had recently extended its
field of operations, and sent forward to the markets of the
United States 60 car-loads of inspected seed potatoes which
realized $40,000 more than if sold for consumption. J. D. Stew-
art, K.C., was selected as Leader of the Conservative Opposition
in succession to the Hon. A. E. Arsenault who was promoted to
the Bench. During the Session 36 Bills were passed of which
the most important was an Act incorporating the P. E. Island
Light, Heat and Power Co., Ltd., with a capitalization of $2,000,-
000, for the purpose of operating throughout the Island from
one central Coal-burning plant. , ::
A Resolution was passed asking the Minister of Railways
to reduce the freight rates on Potatoes by one-third, until June
15, so as to enable the farmers to dispose of their surplus stock.
The Road Act was amended in details as was the Public School
Act making the school age from 6 to 15 years ; the Amalgamation
Act of Prince of Wales College and the Provincial Normal School
was also amended and a measure passed taking advantage of
the Federal offer to aid in establishing a Provincial Agricultural
and Technical School, with the necessary funds provided, and
the Provincial Government given authority as to courses, exam-
inations, fees, scholarships, etc. ; an Act respecting Arrears of
EVENTS AND CONDITIONS IN P. E. ISLAND DURING 1921 737
Taxes dealt with assessments, collections and the necessary legis-
lation to enforce payment — suspending, also, the Lobster tax
of 15 cents a case ; an Act respecting Appeals, an Act permitting
British barristers, solicitors and attorneys to practise in the Is-
land upon payment of certain fees, and Acts respecting Fire In-
surance Agents and the registration of Life Insurance agents
were duly passed, while the Life and Accident Insurance Act
was largely amended. An Act was also passed enabling the
Province to take advantage of the Dominion Technical Educa-
tion Act and co-operation while amendments to the Public School
Act required every child to attend school on 60 per cent, of the
school days each month, unless with a valid excuse for non-at-
tendance. Previously children residing in Charlottetown or
Summerside were obliged to go to school for 30 weeks and those
in the other parts of the Province for 20 weeks. The Legisla-
ture was prorogued on Apr. 27.
Prohibition in P. E. Island still continued, after many years
of operation, in varied forms and with varied powers, to not yet
fully operate — despite the fact that even a "private cellar" was
illegal. Some physicians, here as elsewhere, were too free in
granting prescriptions. According to a statement issued by the
Commission charged with the administration of the Liquor
laws, 34,200 certificates were given by physicians from July 15,
1919 to Mch. 1, 1920. The sales under these certificates amount-
ed to 173 packages of beer, 1,225 cases of whiskey, 1,100 cases
of rum, 250 cases of brandy, 55 cases of port wine, and 94 cases
of gin. At the close of 1921 there were five vacancies in the
Legislature with 21 Liberals, 3 Conservatives and 1 Independent
as the current membership.
The United Farmers of Prince Edward Island, which had
formally organized on Sept. 29, 1920, met in their 1st annual
Convention at Charlottetown on Jan. 25, 1921, with 200 members
in attendance. The provisional President, J. A. Dewar, M.L.A.,
stated that various efforts were being made by the partisan press
to cast discredit upon the movement and he declared all section-
al and partisan statements were bound to re-act upon those who
made them. The Secretary, Preston Ellis, reported that 16 Lo-
cals had been formed with a membership fee of $1.00 charged,
and 130 members paid up; expenditures to date were $67.41, and
the balance on hand $62.59. Among the speakers at the Con-
vention were William Irvine, organizer for the U. F. N. B., and
R. K. Tracey, M.L.A., President of the Maritime United Farmers'
Co-operative Ltd., Centreville, N.B. The question which evoked
most interest was that of rail transportation conditions on the
Island and connections with New Brunswick, and the following
Resolution embodies the complaints and suggestions of the meet-
ing:
Whereas, the transportation provided by the C. N. R. from the main-
land to Sackville is insufficient, both with regard to freight and passen-
ger traffic, in speed and rolling stock and in live-stock shipping facilities
with the rates extremely high; and, whereas, our connection with the
738 THE CANADIAN ANNUAL REVIEW
Mainland now depends upon one car ferry steamer; and, whereas, it is
impossible to operate effectively where two gauges of Railway are oper-
ated on the Island; and, whereas, many railroads are built in Canada in
districts sparsely settled costing tens of millions of dollars, while the
most thickly settled Province in Canada has not even a wide gauge road
throughout the Province ; therefore resolved that we, the United Farmers
of P. E. Island, request the United Farmers of other Provinces to join
us in pressing upon the authorities the necessity of providing at least
a wide-gauge road all over the Province, and a second car ferry steamer
to make safe railroad connection with the Mainland.
Another Resolution, adopted unanimously, urging the or-
ganization of the whole Province in the United Farmers, while
a third, recommending reduction of the number of members of
the P. E. Island Legislature from 30 to 15, was referred to the
local branches for consideration. The officers elected for the
ensuing year were : President, Horace Wright ; Vice-Presi-
dents, George Ellis, W. W. Crosby, Edgar C. Giddings; Sec.-
Treas., Preston Ellis, Tyne Valley.
MANITOBA
AND
SASKATCHEWAN IN 1921
The political situation in Manitoba during- 1921
The Govern- was of the most mixed nature known to Canadian
ment o Provincial history ; it was essentially a matter of
Politic* and Groups so far as tne Legislature was concerned ; the
Legislation Government itself, was nominally Liberal in pol-
in 1921. itics and construction, but was absolutely dependent
upon alliance with one or more of the other groups.
The Ministerial party in the House was composed of 21 members
and was the largest. The official Opposition of Conservatives
numbered 7 and fought the Government keenly with a leader in
J. T. Haig, K.C., who was sometimes rather radical in his affilia-
tions. Another group was made up of 5 French-Canadians and
2 Ruthenians of varied nominal politics, but devoted to a change
in the School system and antagonistic to the Government as rep-
resenting a settled policy of opposition to Bi-lingualistn in Edu-
cation; most of them were farmers and were often included in
lists of the Independent-Farmer group with which, also, they
were inclined to act.
The Labour group of 11 members had not been elected in
any special opposition to the Norris Government and was not
cohesive in general principles and policy, though acting under
F. J. Dixon as Leader. It represented two distinct lines of
thought — the Social Democrats and One Big Union sections ;
individually, it included the moderate trades-union views of G.
H. Palmer of Dauphin, and the revolutionary ideas of George
Armstrong — still undergoing sentence for the 1919 Strike affair
— and the opinions of A. K. Kristjanssen who was elected as a
Farmer, but in 1921 voted with the Labour party. Lastly there
was the Farmer group of 9 members acting under William Rob-
son as leader and elected as independents — not in opposition to
the Government, particularly, nor as official representatives of
the United Farmers or of Mr. Crerar's party. They practically
embodied a trial venture by the Farmers to test their strength
in the Province.
Such was the product of the 1920 Elections and the net re-
sult was that the Norris Government remained in office during
1921, though not in power. The Lieut.-Governor, who held the
scale of non-partisan administration in this situation, was Sir
James Aikins, an old-time Federal Conservative, and he did it
well; with speeches which were acceptable from time to time
whether delivered in City or in the country; whether as Presi-
dent of the Canadian Bar Association, or as an exponent of Can-
[739]
740 THE CANADIAN ANNUAL REVIEW
adian patriotism, or in reference to purely local matters. On Dec.
10, he received a Loving-cup from the Bench and Bar of Que-
bec as a far-away compliment upon his 70th birthday. The Hon.
T. C. Norris, as Premier, handled matters with a measure of
political success ; without a majority in the Legislature he passed
through a three months' Session un-defeated and with only one
Government measure not carried; this despite keen and repeat-
ed efforts of some Opposition groups to effect a hostile com-
bination in a House where the Government had 21 members
against 34. Two special developments marked the 1921 Session
— one was the co-operative action at times of the Conservatives
and extreme Socialists and the other was the tendency in the
larger part of the Farmers' group to support the Government.
The Dominion Elections evolved another complication, growing
out of the 1917 differences as to Union Government, with a
straight Liberal wing of that party and a section which was
said to favour co-operataion with the Progressives ; in the end,
Manitoba was the only Province not represented in the Mac-
kenzie King Cabinet.
The only change in the Norris Government during the year
was the appointment of Lieut.-Col. C. D. McPherson of Portage
la Prairie, a newspaper publisher, as Minister of Public Works
in succession to Hon. G. A. Grierson who had resigned on ac-
count of ill-health. Colonel McPherson, with one year's inter-
mission, had been in the House since 1910; he was sworn in on
Jan. 20th and was re-elected in Lakeside on Feb. 7th after a
keenly-contested campaign with E. H. Muir, Independent Far-
mer candidate ; the Premier and other Ministers spoke in the
constituency and claimed that they embodied, practically, 'a Far-
mers' Government while W. W. Robson, the Farmers' leader,
opposed this contention and was aided by P. A. Talbot, Indepen-
dent Conservative; the vote was 1,176 for the Government can-
didate and 1,020 for the mixed Opposition — a majority for Col-
onel McPherson of 156.
Meantime, on the question of Provincial control of Natural
Resources, Mr. Premier Norris had maintained the traditional
fight of Manitoba parties for what they considered the rights of
the Province in this respect; at the recent Conference of the
Dominion and Provincial Governments at Ottawa (Dec. 15, 1920)
Manitoba and the West had presented their case while counter
claims from the Maritime Provinces had developed and the meet-
ing closed without agreement or settlement ; an elaborate corres-
pondence between the Dominion and Manitoba Premiers follow-
ed and was made public on Apr. 11. Under date of Dec. 7, 1920,
Mr. Meighen stated that a settlement of the question upon the
lines suggested by the Western Provinces could only be made
with the consent of the other Provinces of Canada. As this
seemed impossible he suggested a modification in these propos-
als ; Mr. Norris presented again the Western Memorandum pre-
pared for the 1920 Conference on the matter but its proposals
MANITOBA GOVERNMENT AND LEGISLATION IN 1921 741
were ruled out as impracticable; on Mch.10, 1921, Mr. Norris
wrote again that he would, as representing the Province of Man-
itoba, "not concur in any abatement" of these proposals or "con-
cede the interests of the other Provinces, as such, in our Natural
resources."
He maintained that if the general principle was granted and
rights of the West accepted, details and methods could be easily
arranged. As to the Dominion Premier's specific proposal: "I
feel compelled to decline to concede, much less suggest, any
abatement of the Subsidy in lieu of Lands unless an accounting
upon the fiduciary basis set out in our Memorandum discloses
a balance against the Province." Following this the Legislature
once more, on Apr. 11, reiterated its demand in this connection
by a Resolution moved by the Premier and seconded by J. T.
Haig, which reviewed the alleged Provincial rights and declared
emphatically that the Province was "entitled to compensa-
tion upon a fiduciary basis for all public lands and natural re-
sources alienated by the Government of Canada for the purposes
of the Dominion."
On May 20, Mr. Norris, J. T. Haig, K.C., F. J. Dixon and W.
Robson, the four Group leaders of the Legislature, were at Ot-
tawa pressing these claims upon the Dominion in a Memorial
presented by Mr. Norris to the Cabinet of which the salient
points may be summarized: (1) that Manitoba in common with
every self-governing Province in the British Empire, was en-
titled to its Natural Resources ; (2) that this right lay from July
15, 1870, when it entered Confederation; (3) that as this was a
matter of land, etc., not of Subsidies, no other Province in Canada
was concerned in the settlement; (4) that assuming there was
no objection to transfer of the unalienated resources, the ques-
tion became one of compensation for those alienated; (5) that
adjustment should be made on the general ground of alienation
of resources which would otherwise have been a source of rev-
enue to the Province ; (6) that compensation should be made
upon the basis of a flat valuation at "a time set by mutual agree-
ment. Mr. Meighen expressed his opinion that the Resources
should be returned — with the question of terms as the chief
stumbling block ; that the terms must be such as would pass the
Dominion Parliament; that the other Provinces had interests
in the matter and that this was felt by Parliament; that the
grievance was not so great as the Prairie Provinces thought
and that the Commons would never accept an arrangement on a
fiduciary basis. While in Ottawa the Delegation waited upon
the Soldier Settlement Board as to some criticism current in
Manitoba and received information which, apparently, was
quite satisfactory.
Another Dominion and Provincial matter in which the Nor-
ris Government was interested was the Lake of the Woods
power legislation at Ottawa and Toronto; Winnipeg and other
parts of the Province were vitally concerned in the Winnipeg
742 THE CANADIAN ANNUAL REVIEW
River power. As the Manitoba Free Press put it (Apr. 30) ; "It
would be a strange thing if Power plants already established, on
which a City of this size depends for its lighting, its street rail-
way service and other domestic and commercial purposes, are
to be seriously jeopardized, as they would be, by allowing the
waters higher up to be used by an entirely new commercial en-
terprise in such a way as to provide a very intermittent and
fluctuating flow of water on the Winnipeg River." Mr. Norris
joined Ontario in the first plans of combined policy in the Back-
us matter ;* he was in conference at Ottawa on Jan. 31 with the
Dominion Premier and Mr. Drury and accepted the proposed
Dominion-Ontario Control Board; he pressed the Federal Gov-
ernment for action which would prevent private interests, such
as those headed by E. W. Backus, from dominating existing
power developments on the English and Winnipeg Rivers in
Manitoba by securing a commanding position on the English
River in Ontario. Later, when Ontario complications intervened,
the Manitoba Government was satisfied with the Dominion con-
trol of the Lake of the Woods water-levels and the adjustments
made by Federal legislation.
The Temperance question in Manitoba was an ever-present
one — with or without Prohibition. The 5th annual Report of the
Chief Inspector, under the Provincial Temperance Act, was is-
sued in 1921 for the calendar year 1920, and showed 740 convic-
tions for infraction of the Act as against 610 in 1919; the fines
imposed were $121,826 compared with $105,465; during the year
5 wholesale druggists' licenses were issued and 164 retail drug-
gists were licensed; there were 155 of the latter in force on
Dec. 31. The amendments to this Act, passed in 1920 and follow-
ing the Plebiscite came into force on Feb. 1st, 1921, and, with
the co-operation of the Dominion law, importation was banned ;
licenses to wholesale druggists thereupon ceased to operate and
retailers and others who could legally purchase liquor did so
through a Government vendor from a warehouse established at
Portage la Prairie. On Feb. 24, under authority of the Provincial
Council of Physicians and Surgeons, 16 Manitoba physicians
were suspended for periods ranging from one week to six
months, as a result of the wholesale issue of prescriptions for
whiskey as a beverage. One of the Doctors gave 10,000 pre-
scriptions during a one-month period and 12 of the physicians
practised in Winnipeg.
On Oct. 5th the Moderation League of Manitoba, which had
in hand the fighting of absolute Prohibition and the advocacy of
Government control and sale of alcoholic liquors, held its annual
meeting in Winnipeg with Lieut.-Col. William Grassie, D.S.O.,
President, in the chair. He announced 16,000 paid-up members
and stated that the Petition asking the Government for a Ref-
erendum on the proposed policy had been signed by more than
18,000 persons. He declared that the situation was worse to-day
*Note.— See preceding pages in Ontario Sction.
MANITOBA GOVERNMENT AND LEGISLATION IN 1921 743
than it had ever been — worse morally, economically, and in every
way; claimed the present legislation to be oppressive, because
it denied them the right to exercise the freedom of will which
the Almighty had given ; alleged the Act to be absurd, illogical
and absolutely wicked because it made a man a criminal when
extending hospitality to a friend. Major G. W. Andrews, D.S.O.,
M.P., and Dr. M. R. Blake, M.P., also spoke ; the President was re-
elected with A. J. Andrews, K.C., W. J. Christie, Lieut.-Col. A. C.
Gray, G. F. R. Harris, P. C. Locke, Hon. Robert Rogers, Col-
onel R. M. Simpson, C.B.E., D.S.O., M. J. Stanbridge, M.L.A., and
others, on the Executive.
The Minister of Agriculture (Hon. G. J. H. Malcolm) had
a difficult Report to make and some unpleasant conditions to
record in 1921 ; at the same time the Government had done much
for the farmers and, up to the close of the year, through various
agencies had loaned about $8,000,000 to the agriculturalists of the
Province. The Deputy Minister, J. H. Evans, referred in his
statement to the strong preventative measures taken by the
Department as to rust, grasshoppers, wheat-stem, saw-fly and
smut, described them as agricultural plagues and indicated the
causes and methods of treating the problem, stated that while
the grasshoppers affected a wider area than usual they had
done less damage to crops because (1) there was an abundance
of green feed and (2) of the well-organized effort made by far-
mers, municipalities and the Government. He described the Live-
stock position as a serious one and "cheaper production, better
classes of live-stock, marketting less during the glut season,
placing on the market a more finished product, meeting market
requirements in type, cheaper transportation — both on rail and
ocean — with access to markets now beyond our reach" as the
only means of meeting the situation.
Mr. Evans stated that the Royalty on furs had proved effec-
tive with $40,000 collected during the year and the Produce Deal-
ers' Act — for licensing dealers in farm products — had been useful
and preventative of abuses ; declared that there would soon be
available the "complete and elaborate information resulting from
the Agricultural Survey carried on during the summer by the
Staff of the Manitoba Agricultural College under the able direc-
tion of President John Bracken" ; mentioned several important
Conferences which he had attended— Western Canadian Live-
Stock Union, Manitoba Live-Stock Breeders, U. F. M. and U. F.
W. M., Agricultural Societies, Women's Institutes, the Canadian
Produce Dealers' Association in Montreal, and a succeeding
Conference of Deputy-Ministers at Ottawa to discuss co-ordin-
ation and co-operation.
L. A. Gibson, Dairy Commissioner, reported as to milk
products during 1921, a total of 8,550,105 pounds of Creamery
butter valued at $3,163,538; 9,888,103 pounds of Dairy butter
worth $2,274,263; 269,524 pounds of Cheese valued at $51,209
with milk, ice-cream and cream valued at $7,100,419. The total
744 THE CANADIAN ANNUAL REVIEW
of Dairy products was $12,589,431. Reference was made to the
new regulations making licenses necessary for all persons en-
gaged as milk or cream testers and to the success of Manitoba
in the Dominion Educational Scoring Contest as to Creameries.
Other Reports submitted to and supervised by Mr. Malcolm as
Minister, were those of the Weeds Administrator (S. A. Bed-
ford) and of W. W. Fraser as Live-Stock Commissioner; of the
Publications Branch, under George Batho as Editor, with stat-
istics and publicity in charge and a printing and circulation of
175,650 Bulletins, 96,850 Circulars, etc., 16,770 posters, placards,
etc., and 210,790 of miscellaneous printed matter.
There were, also, the Game Branch covering $74,549 in rev-
enue and the shooting (1920 returns) of 139,216 ducks, 36,838
prairie chickens, 5,682 partridges, etc., with 1,277 Moose, 591
Elk, 698 Deer and 20 caribou shot or captured; the Manitoba
Branch Employment Service Bureau showing 75,414 placements
made compared with 92,613 in 1920; the Women's Institutes
whose Director reported 118 of these organizations with $23,000
raised during the year and much energetic effort along Com-
munity lines ; the Agricultural Extension Service covering 14
divisions, each under individual direction, and including Ag-
ricultural and Horticultural Societies, Lectures, Travelling Li-
braries, Short Courses, Women's Institutes, etc., The Extension
Council, which supervised and helped the work, and acted as a
clearing-house for ideas and plans, with various working Com-
mittees, was as follows:
John Bracken President, Agricultural College (Chairman)
Mrs. M. K. Guild Director, Home Economics, M.A.C.
Mrs. D. Watt President, Women's Institutes
Mrs. J. S. Wood President, United Farm Women
Robert Fletcher Deputy Minister of Education
R. B. Vaughan Director of Technical Education
Dr. R. C. Wallace University of Manitoba
James H. Evans Deputy Minister of Agriculture
S. T. Newton Sup't. Extension Service (Secretary)
The Railway Commissioner (Hon. T. C. Norris) reported
for 1920 that the lines in operation within the Province totalled
4,463 of which the C. P. R. stood for 1,724 miles and the C. N. R.
Government Railways and G. T. P. stood for 2,323 miles. It
was stated that the Province continued to be protected by the
Dominion authorities with respect to the Provincial Guarantee
of certain debentures and stock issues of the C. N. R. Company,
given since 1904, and amounting to $25,502,873 and that the pro-
jected line of railway in Northern Manitoba from The Pas to
the big Flin Flon copper deposits was under survey with an es-
timated length of 85 miles. All reports showed that construc-
tion would open other commercial enterprises and large miner-
al deposits of gold, copper and sulphides.
The Report of the Department of Public Works— Hon. C.
D. McPherson, Minister— for the year of Nov. 30, 1920, included
many statements of officials and the summary of operations
by S. C. Oxton, Deputy-Minister. Under this Department were
the new Parliament Buildings — as to which cracks developed
MANITOBA GOVERNMENT AND LEGISLATION IN 1921 745
during- 1921, due to faulty construction of caissons beneath the
building-; the Brandon and Selkirk Hospitals for Mental Dis-
eases with 953 patients, and 191 members of Staff — with, in the
latter case, a building officially described as a fire-trap ; Home
for Incurables, Aged, and Infirm at Portage with 142 inmates
and 60 members of Staff; the Manitoba School for the Deaf and
Detention Home in Winnipeg with the latter building described
by Mr. Oxton as unfit for its purpose. The Good Roads Board
of Manitoba reported to this Minister for 1920 with a record of
construction exceeding any in the history of the Province and
including 229 miles of road gravelled, 845 miles improved, 129
concrete structures built and the following moneys expended :
From Inception of
During 1920 the Act to Date
Description of Work Government By Municipal- Government
with Expenditures By Municipalities aid Given ities aid Given
Market Roads $1,528,748 $670,199 $2,573,589 $1,127,713
Provincial Highways 425,766 279,422 902,085 588,988
Pavements 45,446 22,723 984,799 320,757
Bridges 452,732 222,166 956,009 , 449,434
Total $2,452,692 $1,194,510 $5,416,482 $2,486,892
The Highway Commissioner was A. McGillivray. One of
the vital elements of the Road problem, and a permanent one,
was that of maintenance and A. C. Emmett, Secretary of the
Winnipeg Automobile Club, on Oct. 29 expressed this view:
"The absolute lack of proper maintenance of the highways is
the curse of the present system of municipal control. Until
such time as sufficient public interest can be aroused to obtain
the adoption of a more centralized system of control, just so
long will the taxpayers' money be prodigally scattered in patch-
work roads and maintenance." In the Winnipeg Free Press of
Dec. 17, the above organization and the Manitoba Motor Club
published elaborate suggestions along this line with the pre-
liminary comment that: "Multiplicity of control is the prin-
ciple objection to the present condition. To obtain the best pos-
sible results, both from the standpoint of economy in construc-
tion and of adequate maintenance, a central Control body must
be established to undertake the construction and maintenance
of the main truck highways so that a network of connected main
roads, to provide convenient access to all parts of the Province,
may be established. Under the Good Roads Act the initiation of
road improvement is left in the Jiands of each individual muni-
cipality. As the result, there is no single highway in the Prov-
ince which is of a continuous character in any direction, because
certain of the municipalities refuse to bring themselves within
the Act." The proposed connected system involved 1,600 miles
of road at a cost of $8,000,000 and included the 500 miles under
construction at a cost of $2,500,000. Meantime the Good Roads
Board had, in 1921, again excelled any other year in construction
figures, with much work done under the Dominion Highway
Act and Provincial arrangements. To the close of the year 9
projects, totalling 764 miles, had been placed under agreement
746 THE CANADIAN ANNUAL REVIEW
with the Federal Department and Expenditures to the amount
of $906,244 incurred by the municipalities and the Province from
inception of the Act in July, 1919, to Sept. 30, 1921.
As elsewhere the Power issue was important. The 1st An-
nual Report of the Manitoba Power Commission — J. M. Leamy,
Commissioner — covered the period between the 1919 Session of
the Legislature and Nov. 30, 1920. In it Mr. Leamy stated that
the reception of the Commission by the rural districts
as well as by the towns and villages, had exceeded all expecta-
tions; that there was a constant, increasing, stream of applica-
tions for information and services; that the difficulty for the
future would largely be, not to find ways and means of extend-
ing, the services, but rather to curb and control the number of
applications, within reasonable bounds, so as not to consume at
the start too much capital."
He instanced elections under the Power Act at Portage,
Virden, Minnedosa, Carman, Roland and Morden with hardly
an average of 5 per cent, against the proposals and reported
expenditures to date, in carrying power to different commun-
ities, of $886,463 : "The principle upon which the Commission
works is that all fixed sums charged against capital expenditure
are to be distributed and returned to the Commission by the
municipalities with whom contracts are made. In addition it
is assumed that the municipalities are partners in all the work
of the Commission, and responsible for the financial return
which its work requires." The first part of the plan was with
the City of Winnipeg with power obtained from plants on
the Winnipeg River; the second was with Portage la Prairie,
Virden and Minnedosa, under operation, and with other lines
under construction.
Speaking at Brandon on June 23, Mr. Leamy stated that
Hydro power delivered there would sell at about $20 per horse-
power per annum; the line must be at least of 110,000 volts line
pressure and have its own right-of-way; he estimated the total
cost of construction per mile at $10,000, including labour at $2,400
a mile, or an expenditure of about $1,800,000 including distribu-
tion stations, etc. ; it should produce 25,000 Killowat power and
a steam plant to produce the same power would cost $3,600,000.
In August, A. E. Davison, Engineer of the Ontario Hydro Com-
mission, reported upon the line from Winnipeg to Portage at
the request of Mr. McPherson, Minister of Public Works, and
in view of the heavy storms met by this Line he advised a
heavier load to act as ballast and approved the plan of an oper-
ating Superintendent ; the general condition of construction was
said to be good.
Meantime, the City of Winnipeg was operating its own
Power-plant at Point du Bois and had completed a new second
transmission line, which made 30,000 more horse-power available
and 30,000 additional in the near future ; in the 9 months ended
Sept. 30, 1921, the figures of the Civic Hydro-Electric Depart-
MANITOBA GOVERNMENT AND LEGISLATION IN 1921 747
ment showed a deficit of $65,356, with, however, a surplus of
$203,828 in hand from the carried-over surplus of $269,184.
The Manitoba Power Company, Ltd., was organized during
the year with Sir Augustus Nanton, President, and A. W.
McLimont, Vice-President, as the successor of the Winnipeg
River Power Co., Ltd., and, virtually, as a subsidary to the Win-
nipeg Electric Railway. Great Falls, on the Winnipeg River,
was the point at which the power was to be developed, about 60
miles north-east from Winnipeg; work was actually begun on
construction of the plant which, when completed in 1924, would
have a capacity of 168,000 h.-p.
The Company offered, a little later, an issue of $7,500,000
1st mortgage, 7 per cent, sinking fund, gold bonds and of this
$3,000,000 was offered in New York and taken up in a single
day; the balance was offered in Canada. Construction of 3ie
power development was under the supervision of Julian C.
Smith, General Manager of the Shawinigan Water and Power
Co., and the capitalization of the Company consisted of the bonds
mentioned above and an authorized capital of $35,000,000. The
Greater Winnipeg Water District, which was the source of
Winnipeg's Water supply, was one of the great public works
of the continent; the Aqueduct and conduit connected Shoal
Lake (Lake of the Woods) 95 miles with Winnipeg; it involved
a possible supply of 85,000,000 gallons of water every 24 hours
to 250,000 people. In a Report of Dec. 31, 1920,'the Assets of the
Commission in charge totalled $17,491,781 and included $14,205,-
811 as the cost of Aqueduct construction and $1,693,862 for
Railway construction with a Bonded indebtedness of $16,197,012.
Aside from the Commissions definitely touching the Govern-
ments' financial policy, there were others of importance. The
Provincial Drainage Commission, appointed in 1919, and com-
posed of J. G. Sullivan (Chairman), H. S. Grills and J. A. Thomp-
son, in its annual Report for 1920, dealt especially with the in-
vestigation of flood control and the drainage of the Seine River
below Ste. Anne des Chenes. During its fiscal year the Commis-
sion held 14 public and 30 business meetings, and its work con-
sisted, chiefly, in recommending and advising on legislation that
would enable the Government to adjust drainage taxes and in
securing topographical and other data concerning the Drain-
age Districts. In December, 1921, it reported to Mr. McPher-
son, Minister of Public Works, the result of a two-years' in-
vestigation of conditions.
The recommendations were as follows: (1) the appoint-
ment of a permanent Board to administer the Drainage Act;
(2) that no new Districts be formed unless development and de-
mand for land fully warrant the expenditure; (3) the extension
of the boundaries of any District to include all land whose sur-
plus waters drained into it and were carried through it to a na-
tural outlet; (4) the equitable distribution of taxes on basis of
benefits received and relief from liability for damages; (5) the
748 THE CANADIAN ANNUAL REVIEW
improvement of existing ditches and the channels — in special
cases charging the cost or part of the cost to capital account;
(6) the Government to assume responsibility for general main-
tenance of ditches — charging cost to the respective Districts;
(7) the double dyking of main channels as a means of flood pro-
tection and the construction of new Districts where required.
The Public Utilities Commission of which P. A. Macdonald
was the one member and Manager, had been formed under leg-
islation passed in 1912 with very great powers which were crit-
icized, at the time, by the Liberal Opposition and by the Winni-
peg Free Press. Recently a Court of Appeal decision had indi-
cated that the Commissioner possessed authority to vary, reject,
over-ride and modify contracts ; in this connection it had issued
an order which was said to have destroyed a contract between
the City and the Street Railway and to have practically deprived
the City of control over its own streets ; a vigorous agitation
followed for its abolition or for a great restriction of its powers ;
the City Council declared by Resolution that the Act was origin-
ally passed to regulate the Public Utilities of the Province, in
the interest of the public, but that the exercise of powers there-
in by the Commission had encroached upon the rights of the
City Council, which, under the Winnipeg charter, gave it control
of streets. On Apr. 28 the Legislature passed a Resolution by
24 to 21 in favour of its abolition and the transfer of its work
to the Provincial' Secretary with one year in which to effect the
Statutory change.
The Manitoba Government Telephones were under a Com-
mission of which John E. Lowry was the member and Manager
— appointed in 1921 to succeed G. A. Watson; on July 21, it was
authorized by the Public Utilities Commission to put increases
into effect on Aug. 1, calculated to raise $575,000 additional
revenue; under the terms of the Order, Winnipeg residents
would pay about $245,000 more, annually, for telephone services
and rural residents would pay $330,000 more ; toll lines would
make about $125,000 of this amount and the balance be derived
from exchanges. These figures represented the net amount,
with $110,000 allowed subscribers in discounts if their accounts
were paid promptly. The new Order increased business phones
from $60 to $83 a year and residence wall phones from $30 to
$38; rural phones were increased in amounts varying from $5 to
to $16 a year and the Province was divided into groups, with a
prevailing rate in each group.
The Mothers' Allowance Commission — George Fisher, J. H.
J. Murphy, Mrs. John Dick and Mrs. T. R. Deacon — reported in
1921 that since its inception, by an Act of 1916, there had been
an increasingly large demand for funds to care for families be-
reft of their bread-winners ; it was suggested that this expen-
diture by the Commission should be carefully scrutinized by
citizens ; reference was made to the family conditions and
problems, the health and social service matters involved ; some-
MANITOBA GOVERNMENT AND LEGISLATION IN 1921 749
thing was said of the excellent work done by the Winnipeg
Mothers' Allowance Auxiliary, a volunteer body alive to its op-
portunities and described as doing yeoman service ; a Social Ser-
vice department was urged and the special Course of Manitoba
University in this respect mentioned. For the year of Nov. 30,
1920, there were 479 families under allowance as compared with
362 in 1919; 200 new applications for allowances were received
during the year, of which 156 were granted, 35 refused, 8 defer-
red and 1 withdrawn, while, in 19 cases, previous applications
were renewed and granted. The Commission asked the Gov-
ernment for a 1921 appropriation of $475,000 and added the re-
mark that "Manitoba has led in this field of social welfare with,
during the past year, British Columbia and Ontario following
along similar lines."
The Provincial Board of Health, composed of Dr. Gordon
Bell, Dr. F. T. Cadham, Dr. E. W. Montgomery, Dr. J. N. Little,
Dr. M. S. Fraser, Dr. E. Bottomley, Dr. Mclnnis and S. E. Laing,
reported in 1921 an increase in the work done by Public Health
Nurses numbering 43 and in educational work by the Little
Mothers' Leagues with 387 classes and 7,393 girls in attendance ;
the Nurses during 1920, in addition to their regular work in
schools and the homes of pupils, did much valuable community
work with 31 courses in home nursing and first aid under the
auspices of the Women's Institutes, and 129 home nursing and
first aid lectures with an attendance of 1,179. In connection
with Child Welfare work, the Nursing department proved of v ,
great assistance to such bodies as the Mothers' Allowance Com- JK
mission, the Provincial Police, the Soldiers' Settlement Board
and many social agencies dealing with care and relief for
mothers and children; 5 new Child Welfare stations were opened
during the year with 125 children's clinics held throughout the
Province and child health work, generally, aided with 35 Con-
ferences ; 10,000 copies of a Baby Book were distributed and the
first inspection of children by Nurses totalled 13,241 with 14,692
subsequent inspections and 17,813 Home visits.
The Provincial Bureau of Labour, in its 5th annual Report,
stated a large programme of work done which included the en-
forcement of 15 important laws and a development from 1,154
Industrial inspections in 1915, with 1,220 Orders issued, to 15,011
inspections in 1920 and 6,639 Orders for improvement issued;
described much attention given to the Factories Act, in particu-
lar, and 2,507 industrial accidents during 1920; dealt with the
preparation of new Passenger and Freight elevator regulations,
adoption of rules regarding construction and operation of steam
boilers, a special survey of the different Provinces as to com-
pressed air tanks and safety appliances. The Minimum Wage
Board, of which G. N. Jackson, Mrs. Nash, E. Parnell, Miss Flett
and Joseph Winning were members, looked after the enforce-
ment and administration of the Act in this connection; held 40
meetings during the year and carefully revised its regulations
750 THE CANADIAN ANNUAL REVIEW
with a total of 2,498 inspections and the issue of 1,183 Orders,
covering 14,591 employees — with 214 over-time permits issued;
reported that most of the employers of labour had co-operated
with the Bureau and that numerous complaints were received
from employees and were promptly investigated and adjusted
in a manner "apparently satisfactory to all concerned." The
Board appointed under the Welfare Supervision Act was as
follows :
T. J. Murray ,K.C Winnipeg Major D. M. Duncan Winnipeg
J. M. Thompson Winnipeg G. F. Chipman Winnipeg
Mrs. Kenneth Campbell Brandon Rev. D. B. Harkness Winnipeg
E. A. McPherson, K.c Portage Dr. J. Halpenny Winnipeg
Mrs. R. F. McWilliams Winnipeg
Of the other Manitoba organizations of this nature, the
Manitoba Tax Commission included L. W. Donley (Chairman),
Prof. A. B. Clark and Robert Forke, with E* W. Watts as Sec-
retary; the Fair Wage Board was composed of S. C. Oxton, W.
J. Davidson and George Armstrong, and the Workmen's Com-
pensation Board of H. Wilson, A. R. D. Patterson and C. W. N.
Kennedy. Incidents of the year included the retirement of
Prof. R. C. Wallace as Commissioner for Northern Manitoba,
after issuing a Report dealing with a timber production in that
new region (1920) of $1,034,000, Mineral products of $605,914,
Fur of, approximately, $1,000,000, Fish worth $49,724 and Hay
and Cattle $65,000; the Provincial expenditure during 1920 of
$1,500,000 upon construction of the only Psychopathic Hospital
in Canada with plans outlined by the Norris Government en-
tailing the expenditure of $15,000,000 in future building con-
struction for the housing and care of Mental Defectives and to
be carried out within the next 10 or 15 years if conditions per-
mitted— Insane persons to be treated as suffering from illness
rather than as criminals.
Other incidents were the appointment of a Board of Super-
visors of Boxing and Wrestling composed of E. G. Bricker,
James I. Morkin and J. W. Anderson — all of Winnipeg; the
election at Brandon on Mch. 31 of A. E. Hill of that town
as President of the Liberal Executive Committee of Manitoba
with F. C. Hamilton, Vice-President, N. T. MacMillan, Treas-
urer, C. S. Macdonald, Secretary, and Horace Chevrier, CX-M.L.A.,
and L. St. G. Stubbs, of Birtle, amongst the members ; the win-
ning by Manitoba of the Governor-General's Challenge Shield in
competition for the largest number of Cadets between 12 and 18
years old enrolled on May 24, 1921, in proportion to school at-
tendance during the previous year — with a total of 8,581 or 6-95
per cent, of school attendance and Quebec coming next at 653
per cent, with 32,184 Cadets. On Nov. 25, the commencement in
London of Appeal proceedings before the Privy Counsel in the
celebrated and long-standing case of Thomas Kelly & Sons,
contractors, and the Parliament Buildings construction affair,
was announced. Sir John Simon, K.C., Hon. T. H. Johnson, K.C.,
Attorney-General, and others represented Manitoba; A. J. An-
FINANCIAL CONDITIONS AND LEGISLATION IN MANITOBA 751
drews, K.C., Travers Sweatman, K.C., and others represented the
Contractors. Judgment was reserved. The population of the
Province was announced in November under Census returns as
613,008 or an increase of 32-92 per cent, since the 461,190 figures
of 1911; Winnipeg grew in the decade from 136,035 to 178,364
or 31-12 per cent, and St. Boniface (really a part of Winnipeg)
from 7,483 to 12,816 or 71-20 per cent.
MANITOBA GOVERNMENT APPOINTMENTS OF 1921
Comptroller-General of Finances Robert Drummond Winnipeg
Hon. A.D.C. to Ljeut.-Governor Lieut.-Col. Neil B. McLean, D.S.O Winnipeg
Hon. A.D.C. to Ljeut.-Governor Major Patrick Hennessy, D.S.O., M.c. Winnipeg
Hon. A.D.C. to Lieut.-Governor Capt. Francis G. Mathers Winnipeg
Deputy-Provincial Sec/etary Mrs. A. W. Larson Winnipeg
Member, Board of Trustees Provincial Savings
Department Robert S. Ward Winnipeg
Commissioner 'of Manitoba Telephones J. E. Lowry Regina
Comptroller of Town Planning W. E. Hobbs Winnipeg
Sheriff, Western Judicial District Malcolm McGregor Brandon
Inspector of Legal Offices N. L. Davison Winnipeg
Member Joint Council of Industry George Wright Winnipeg
Member Joint Council of Industry William S. Cameron Winnipeg
Registrar, Department of Education Andrew Moore Winnipeg
Member of the Fair Wage Board William Allen Winnipeg
Chairman, Board of Examiners, Stationary Eng-
ineers W. H. Cooper Winnipeg
Chairman, Board of Examiners, Stationary Eng-
ineers Thomas M. Power Winnipeg
Librarian, Department of Education Myrtle T. Lewis Winnipeg
Acting Commissioner for Northern Manitoba J. A. Campbell, M.P The Pas
Manitoba, during 1921, was in an essentially
depressed condition ; business was dull, the crops
were poor and prices were low; the enterprising
i Manitoba; ifit of the West wag at a low ebb in Winnipeg;
-.. 1«., • • • j 1 C J * 1^
Financial
Conditions
Mr. Brown's
Budget;
Legislation
of the Year.
politics were bitter in spirit and confused in char-
acter; finances were complicated with large meas-
ures of public ownership in conditions of some un-
certainty; taxation was high and threatened to go
higher, while the City of Winnipeg continued its long and per-
sistent effort to obtain authority for the levy of an Income tax
— with, incidentally, a large Labour membership in its Council,
almost even with the representation which would be affected by
such a Tax.
Yet various public enterprises were under way in the Prov-
ince, money was being loaned largely to the farmers and the
Government was deluged with applications for more Loans.
The Ministry was naturally a cautious one and the Hon. Edward
Brown, Treasurer since 1915, was a man of wide financial ex-
perience and recognized capacity. His Budget Speech of Mch.
18, 1921, was a concise statistical presentation of the finances
for the year ending Nov. 30, 1920, with very little reference to
policy and none to politics ; the particular period dealt with had
been one of great progress for the Province and, therefore,
onerous, though agreeable, to the Treasury Department. Capit-
al expenditures had increased despite the stated determination
of the Government to restrain them : "In addition to providing
funds for all the various schemes which the Government is now
carrying on, including Telephones, Housing, Good Roads, Public
752
THE CANADIAN ANNUAL REVIEW
Buildings, Hydro Power Commission, Soldiers' Taxation Relief,
Farm Loans, and Rural Credits, we had bonds maturing on the
New York market amounting in all to $7,498,000, which amount
had to be paid and the refunding of same arranged for." The
larger items were as follows, in a total of $10,776,500 :
For extension of the Telephone System
Loans to Municipalities for Housing Purposes
Farm Loans Association
New Parliament Buildings..
Other Public Buildings
Good Roads
Hydro Power Commission
Soldiers' Taxation Relief
University of Manitoba
Drainage Districts
$3,000,000
2,000,000
1,250,000
1,226,000
646,000
838,000
770,500
400,000
250,000
127,700
Of the Funded Debt of $51,000,000, Mr. Brown stated that
$31,500,000 was self-sustaining and the balance of $19,600,000
represented, in round figures, the Public Buildings of the Prov-
ince ; the Treasury Bills outstanding on Nov. 30, 1920, were $1,-
479,000 and Cash balances on hand $3,140,298 with a Deferred
revenue account of $798,832 and Current revenue unpaid of
$402,634; the earned Revenue of 1920 was $10,482,471 and the
current Expenditure $10,942,808 with a Deficit of $460,336; the
estimated Revenue for 1921 was $9,770,172 and estimated Ex-
penditure $9,740,078. The Treasurer described this fiscal year of
1920 as the most trying in Manitoba's history with the farmers
vitally affected : "Seeding and harvesting operations were con-
ducted at a period when the cost of every item was at the peak.
The calculations of our farmers were completely upset by the
sudden change. In addition to the rapid decline in the prices of
all farm products, the price of all live-stock has, at the same
time, literally gone to pieces. It is the duty of the Government
to lend such assistance as is possible in these trying circum-
stances. Fortunately, we have at hand three great agencies by
means of which we can help, namely the Provincial Savings, the
Rural Credits, and the Farm Loans. The Government will
steadfastly adhere to these great practical measures. There will
be no turning back, but they must be soundly administered and,
in turn, we expect the farmers to do their share by endeavour-
ing to the utmost to live up to the obligations which they have
assumed."
The returns for 1921, as afterwards shown, were even more
marked than those of 1920; the Revenue was $9,800,860 and the
Expenditures $10,401,895 or a Deficit of $601,035. Compared with
1915, when the Expenditures were $4,354,822, the increase was
notable, with Education growing from $823,867 to $2,060,541 and
Public Works from^ $81 8,448 to $2,211,925— exclusive of Tele-
phones. The chief items of Revenue, as shown in the Public
Accounts for Nov. 30, 1921. were as follows: Dominion Subsidy
and School Lands $1,821.378; Fines, Fees, etc., $533.889; Agri-
culture, $250,413, and Education $178,146; Public Works $221,-
791 and Telephone Department $778,784; Interest $1,153,580,
Succession Duties $457,562, Corporation Taxes, including Rail-
FINANCIAL CONDITIONS AND LEGISLATION IN MANITOBA 753
ways, $1,012,683 ; Public Amusement Act and Mothers' Allow-
ance Act $448,926; Automobile licenses $524,233 and Municipal
Tax $1,357,733. The chief items of Expenditure included Legis-
lation $206,756; Mothers' Allowance Pensions $453,913 arid Edu-
cation $1,947,022; Agriculture $937,922 and Law Enforcement
$198,644 — including $29,180 for Temperance enforcement; Ad-
ministration of Justice was $269,861 and Public Works $2,108,194.
The Liabilities of the Province (Nov. 30, 1921) totalled
$68,186,128, including $61,929,870 of Stocks and Bonds of which
$30,515,548 were described as Revenue-bearing; Provincial Sav-
ings Office Deposits of $1,600,000 with Sinking and Replacement
Funds of $4,656,258. Indirect Liabilities included $25,663,553 of
endorsed Canadian Northern Securities and $4,628,876 of Muni-
cipal Debentures and $5,414,658 of Manitoba Farm Loans. The
Assets against the total of $68,186,128 were given as $84,252,478,
of which the Dominion was rated at $13,228,371 ; Public Works
and undertakings (Book values) $44,009,262; Investments and
Secured accounts of $14,262,863 ; Capital expenditures by Drain-
age and Judicial Districts $6,178,347; amounts available for
specific capital outlay and for Sinking and Replacement Funds
$6,075,118.
Following the Budget, Mr. Brown, on Apr. 7, took part in a
Conference with representatives of the City of Winnipeg, 70
rural and urban municipalities, Members of the Government and
of the Legislature, to discuss questions of Taxation. A Resolu-
tion was unanimously approved declaring in favour of a Pro-
vincial Income tax. J. H. Ashdown urged careful consideration,
stated that he had paid $73,000 to the Dominion Government for
taxes in 1920, or 56 per cent, of his income, and said 5 per cent,
should be the limit for the new tax; F. J. Dixon supported a
tax on Land values first and an Income tax second. Mr. Brown
stated that no default had yet been made by any Manitoba muni-
cipality and he wanted to preserve this standard; he would not
promise that the Government would collect an Income tax en-
tirely for the benefit of the towns and villages of the Province ;
his original intention for taxation had been one per cent, on gross
Profits, but this he had changed to a net Profit tax. The In-
come tax might go to the municipalities and the net Profits tax
to the Government.
There was severe criticism of the Government policy on
financial lines and it was claimed that the real Deficit for 1921
was $2,000,000 rather than $600,000; that, in addition to this
latter sum, there was a Telephone deficit of $538,438, a Premium
on Bonds "wrongly taken into Revenue" of $377,474, and an ad-
mitted deficit in Manitoba Hydro Power account of $150,000
with a number of items charged to Capital account which, it
was claimed, should have gone into ordinary Expenditures.
Short term borrowing was especially denounced as financially
dangerous ; the ever-present question of Taxation evoked much
discussion. Prof. A. B. Clark of the University stated, on Apr,
7, that :
25
754 THE CANADIAN ANNUAL REVIEW
The difficulties of the present situation have had their origin in the
steady and, to a considerable extent, inevitable, growth of public ex-
penditure and, in the fact that in urban municipalities, the necessary
taxation is concentrated to an excessive extent on the owners of real
property, x x x This rapid rise in the Tax rate cannot, for the most
part, be ascribed to expenditure on those specific services which tend
to enhance the value of real property. Rather, it must be attributed to
the steady rise in the number and expensiveness of the more general
Provincial or even National services at present performed by our muni-
cipal governments, such as Education, Poor Relief, Police Protection,
care of Public Health, and Administration of Justice.
During the Legislative Session the Corporations Tax Act
was amended so as to include a tax of 2 per cent, on Net Busi-
ness Profits, as Mr. Brown had foreshadowed. In a speech deal-
ing with this subject (Canadian Finance report, Nov. 2) the
Provincial Treasurer went into the differences in taxing gross
and net profits, the desirability of doing the latter but the dif-
ficulties which prevailed, the soundness of the policy from a
financial point of view. What he preferred, however, for future
action, was a Business Income tax — including the Professional
classes. Eventually the Tax on net Incomes was a disappoint-
ment with a few hundred thousand raised as against the $1,250,-
000 of Mr. Brown's estimate. Meanwhile, the borrowings of
the year included an issue in March of $500,000 5-year, 5 per
cent. Bonds ; the issue in May of $4,580,000 of 20-year, 6 per cent.
Bonds — interest payable in Winnipeg, Toronto and Montreal ;
an issue in May of $2,725,000 25-year (non-callable) 6 per cent.
Bonds — principal and interest payable in New York. An incident
of the year was the 1921 Report of the Sinking Fund Trustees
of Winnipeg— E. F. Hutchings (Chairman), W. H. Cross, F. O.
Fowler and H. C. Thompson, Secretary — showing the total
Assets of that City as $13,160,446, the gross Debt as $47,189,696,
liquid securities of $278.88 held by the Trustees for every $1,000
of Bonded indebtedness and $79,287 held to the credit of Surplus
income.
Manitoba Rural Credits Development. This much-discussed
policy had a further and fuller evolution during 1920 and 1921.
The legislation of 1917 had provided for the organization by
Manitoba farmers of Rural Credit Societies, through which share-
holders were enabled to secure short-term or seasonal loans for
carrying on or extending their farming operations — the borrow-
ing member paying 7 per cent., with a rebate of 1 per cent, to
the Society for its own expenses. The basis of organization was
35 farmers as members and each member purchasing a $100 share
of stock in the Society, while the municipality and Provincial
Government each subscribed for half as much as the individual
farmer; all paid 10 per cent, in cash with the balance subject to
call and the cash held as a guarantee fund and a basis of credit.
Loans or credits were passed by the Board of Directors of each
Society ; the Directors to be resident in the district with three
representing individual farmers' stock, three Municipal stock,
FINANCIAL CONDITIONS AND LEGISLATION IN MANITOBA 755
three Government stock; the security for a loan was to rest
largely in the form of a lien or charge on all personal prop-
erty of the borrower and to take precedence over all other
creditors with the exception of a mortgage on the land.
From the start, in 1917, the Rural Credit Societies of the
Province up to March, 1920, were able to borrow through the
Chartered Banks ; trouble then developed as to rates of interest
and further Credits were refused. When this decision became
effective the Provincial Government decided to provide the
necessary funds, or otherwise Rural Credit Societies would have
ceased to exist; on Apr. 2nd, 1920, the first cheques went for-
ward to individuals. On Nov. 30, 1920, the total advances made
by the Provincial Government to Rural Credit Societies amount-
ed to $1,460,227; the total loans granted in 1920 were $2,066,000
and of this amount $665,000 was renewable to December, 1921.
By Nov. 30th the Societies had collected the sum of $202,627,
although only $145,000 was due and payable up to that date.
The record of business in these organizations was as follows :
The number of Societies in 1917, one; 1918, 10; 1919, 38; 1920, 58.
The amount of Loans in 1917, $16,600; 1918, $215,581 ; 1919, $1,-
051,876; and in 1920, $2,066,000. The total loaned at the begin-
ning of 1921 was $2,468,000 with $402,000 of this renewed from
1919.
The original idea in this policy was the useful and proper
one of helping settlers in isolated sections of the Province where
Banking and other facilities were restricted or absent. The
Banks made no objection and, indeed, helped operations so long
as the interest rate was considered by them to be reasonable
and the element of competition did not enter or the extension to
long-term loans come in. Opponents of the policy, also, claimed
that the Banks had always been considerate of the West, that
they had shown substantial interest in its agricultural develop-
ment and that there was, at this time, an actual total of $150,-
000,000 invested by them in Prairie Province loans, that this
new scheme, as finally evolved, was dangerous politically and
financially. An interesting phase of the discussion was presented
by the Provincial Treasurer's announcement, on Apr. 2nd, 1921,
that, unless the Province paid the costs of administration for
these Societies — originally included in the one per cent, allot-
ment from Interest — the rate of loans would have to be raised
to 8 per cent. ; $25,346 was accordingly put in the Estimates, and
approved, after objection expressed by J. T. Haig for the Op-
position.
At the close of the year the annual Report of the Rural
Credit Societies (Charles Gifford, Superintendent) showed, to
date, a total of $2,556,975 advanced: "From Nov. 30, 1920, to
Nov. 30, 1921, our collections amounted to $978,246. During
this period we took over from the Banks all the advances they
had made to the various Societies. During October and Novem-
ber we discounted for Societies notes amounting to $390,000 re-
756 THE CANADIAN ANNUAL REVIEW
payable in 1922. Credits for stock loans amounting to $314,000
were extended to 1922, and other loans amounting to $235,000
were carried over as well, making a total of $939,000 with $1,-
617,000 repayable in 1921." Mr. GifTord stated that the crop
of 1921 was the worst in the history of Manitoba despite the
volume of grain marketted : "Rural Credits, duly combined with
safety, serve to keep the farmer on his land; if we had disre-
garded this fact we could undoubtedly have increased our col-
lections but, even at this, our collections will compare favour-
ably with other organizations." He estimated that the Societies
would need $5,000,000 to finance the 1922 crop ; by the close of
1921 the Rural Credits Department of the Government had loan-
ed up to its limit of $3,000,000 and applications for loans were
still pouring in.
The Manitoba Farm Loans Association. This was another
organization to help farmers. Composed of Lachlan McNeill
(Chairman), George Anderson, F. C. Hamilton, D. D. McDonald
and J. S. Wood (C. P. L. Fowler, Secretary), the Board, in its
4th annual Report to Nov. 30, 1921, made this preliminary state-
ment: "Our organization has been taxed to the utmost during
the past year, and especially after it became plain that, owing to
crop failures and falling prices for all that he produced, on top
of the increased cost of production, the farmer of Manitoba
would find it very hard to carry on without assistance. The As-
sociation has been able to handle the situation to good advant-
age, and is "now paying out very large sums of money in long-
term loans."
During the year there were 1,891 applications, to a total of
$5,096,000, received, and 1,333 were accepted at 32 meetings of
the Board; during this period the sum of $1,626,000 was paid out
in 722 loans, or an average of $2,250 per loan, making 2,348 loans
advanced to Nov. 30, 1921, or a total of $6,147,650, of which
amount the balance of principal outstanding was $5,633,328.
Very few loans had been paid off in. full but, under the 5-year
statutory conditions, from this time on a good many would ma-
ture yearly: "During the past few months a very strong demand
has arisen among investors for the Association's Bonds at 6 per
cent., and it is now assured that plenty of money can be secured
to satisfy the requirements of the farming population and thus
benefit the Province as a whole; while, eventually, the Associa-
tion may be enabled to make some reduction in its rate of in-
terest to borrowers, which was increased from 6 per cent, to 7
per cent, at the last Session of the Legislature."
The Balance sheet showed (Nov. 30, 1921) Mortgage Loans,
with accrued interest, as $5,858,958 and Debentures issued, with
interest accrued, $5,378,533; these Debentures were guaranteed
by the Province ; in November the total applications during the
4-years existence of the Association came to $15,800,000. Dur-
ing the Legislative discussion of the Bill for advancing interest
from 6 to 7 per cent, on these Loans (Apr. 12-13), J. H. Me-
1
FINANCIAL CONDITIONS AND LEGISLATION IN MANITOBA 757
Connell declared that this policy had not only benefitted the
farmers directly, but had forced the Loan Companies to lower
their rate of interest; other members criticized the new rate as
too high for the farmer to pay, though William Robson (the
Farmer leader) was content to let the matter rest on the neces-
sities of the case ; Hon. Dr. Thornton for the Government stated
that since January the Board had been unable to get any money
at 6 per cent, and, therefore, could not lend any at that rate —
the Mortgage Companies running from 7 to 8 and 9 per cent,
in their loans. Hon. Mr. Brown explained the original reason
for an arbitrary 6 per cent, rate as a matter of uniformity; the
2nd reading was approved by 31 to 19 votes, and the 3rd reading,
after a motion by F. J. Dixon (Lab.), supported by J. T. Haig
(Cons.) fixing the rate again at 6 per cent, had been defeated,
was passed by 23 to 15.
The Provincial Savings Institution. Another phase of this
financial and agricultural policy was the passage in 1920 of the
Provincial Savings Act and the establishment of what was—
without the name — a Provincial Government Bank for the fin-
ancing of the Rural Credit Societies. The Act provided for the
opening of Government Offices to take Savings Deposits with
checking privileges and interest at 4 per cent, per annum on the
minimum monthly balance compounded semi-annually. Two
offices were operating at Winnipeg in 1921 with 10 agencies or
Branches at outside Manitoba points. The Board of Trustees
appointed by the Government was made up of E. A. Weir, Chair-
man; George Fisher, Manager in Canada of the Scottish Co-
operative Wholesale Society, as Vice-Chairman ; J. R. Murray
of the United Grain Growers, Ltd. ; F. J. Collyer, McAuley,
President Manitoba Cattle Breeders* Association; J. W. Mo
Quay, District Director of the United Farmers of Manitoba. In
January, 1921, Mr. McQuay resigned and, on Feb. 16, R. S. Ward,
Manager Co-operative Stores, Ltd., Winnipeg, was appointed to
take his place.
The first annual Report of the Board covered the period of
operation from Aug. 31 to Nov. 30, 1920, and showed, at the later
date, 2,241 accounts with deposits of $634,220; on Jan. 31, 1921,
later statements gave 3,706 accounts with a total balance of $1,-
642,226. By the close of 1921, the first full year of operation
showed results to Nov. 30th of $3,113,226 received from de-
positors with $93,836 interest credited their accounts and Loans
or investments totalling $3,220,939; the net result of the year's
operation was a profit of $8,937 and the number of active ac-
counts on Nov. 30, 1921, was 8,052. According to the Report
many of these were opened by people who wanted to help the
Government and the farmers and many very satisfactory ones
were started bv non-English-speaking settlers. The criticisms
offered by Bankers on the last official statement was that noth-
ing had been written off for bad debts or for inevitable losses ;
reference was made to the investment of $250,000 in Victory
758 THE CANADIAN ANNUAL REVIEW
bonds by an institution whose original objective was the lend-
ing of money to the farmers. By the close of 1921, through
these various Agencies the Government had lent to farmers or
was responsible for, in this connection, over $8,000,000.
Manitoba Legislation and Politics in 1921. The 1st Session
of the 16th Legislature was opened on Feb. 10, 1921, by Sir
J. A. M. Aikins, Lieut. -Governor, with a Speech from the Throne
which referred to the bountiful harvest, production and condi-
tions of 1920 and an invasion of grasshoppers which had to be
fought ; mentioned, as under way and directed by the Minister of
Agriculture, "a survey of representative areas of the Province in
regard to climatic conditions, soil analysis and water supply,
with a view to ascertaining the character of farming best suited
to each of the several districts and the methods that will give
the best results ;" spoke of the Government's efforts to obtain
control of the public lands, Timber, Minerals and other natural
resources from the Dominion ; stated that legislation based upon
the Welfare Commission of 1920 had been prepared and would
"consolidate the general laws of the Province respecting chil-
dren, authorize the establishment of a Department of Child Wel-
fare, presided over by a Director, under a Minister of the Crown,
and provide for the classification of indigent and defective chil-
dren and for their proper care and training."
His Honour also referred to the continued shortage in
dwelling-houses, and suggested further loans for construction;
described the establishment in 1920 of the Manitoba Joint Coun-
cil of Industry as "a new progressive principle set in motion"
and declared its creation amply justified by results ; stated that
"in co-operation with the Municipalities which have thus far
become parties to the plan of Hydro-Electric development, an
excellent beginning has been made in the construction of the
transmission line to Portage la Prairie, and its extension line to
Morden" ; spoke of the Manitoba Farm Loans Association and
the Rural Credits system as rendering valuable service to the
farmers of the Province and declared that "the system of Pro-
vincial Savings Offices, authorized for the purpose of financing
the Rural Credits Societies and other purposes," had met with
satisfactory success; expressed confidence in Mining as one of
the large future industries of Manitoba and spoke of the initia-
tion of the first open hearth steel furnace in the Province.
The Hon. James B. Baird had been Speaker of the late
House and he was re-elected; the Address was moved by E. A.
August of Dufferin and Mrs. R. A. Rogers of Winnipeg; the first
ensuing action of the House was to put through a Bill protect-
ing W. J. Tupper and John Stovel, Conservative and Liberal
members, respectively, from action in the Law Courts because
of innocently holding positions, when elected, in respect of which
emolument was payable by the Crown. Mrs. Rogers' speech on
Feb. 14 was received with much interest, as from the first woman
member of the House ; she pointed out the development of
FINANCIAL CONDITIONS AND LEGISLATION IN MANITOBA 759
woman from a share in domestic control, to one in Business, and
now in politics and government. F. J. Dixon, Labour leader, in
speaking to the Address' (Feb. 21) suggested the establishment
of what might be called a business Government with a proper
proportion of each Group in the Cabinet as they now were repre-
sented on the Committees of the House. He was ready to go
even further, and say that members of the Legislature should
elect the Cabinet themselves.
Amongst other speakers on the Address was William Ivens,
Socialist, (Mch. 1), who declared that: "If things go on as
at present, there must be death in the social system ; neglect will
spell disaster like that which occurred in 1914. The War did
not come as an accident, but was the direct result of the social
system ; the Legislature must attempt a scientific advance out
of the chaos of the capitalistic or competitive system; there
should be a system of industry carried on for the people by the
people. Unless that change is made in industry, we have not
seen the last of the War." Nationalization of industry, controll-
ed by the people, was his demand. After a prolonged debate on
the Address, Hon. Joseph Bernier (Cons.) and Maurice Duprey
(Farmer) moved an Amendment to Mr. Haig's amendment that
no action be taken till after the Supply Bill had been presented ;
this was voted down by 32 to 4 and Mr. Haig's Resolution by 25
to 10, with the Address passed by the latter vote.
A number of Resolutions were discussed by the House. .
The first had been moved by F. J. Dixon (Feb. 16) asking the \
Dominion Government to release George Armstrong, William
Ivens, R. Johns, William Pritchard and John Queen from gaol
where they had been held since Mch. 27, 1920; declaring that
Sedition was "a vague term with no clear definition in law nor
in the public mind" ; stating that Armstrong, Ivens, and Queen,
had been elected to the Legislature on June 29, 1920, and claim-
ing that all should be released and, especially, the three members
called by their Legislative functions. On Feb. 18 an Amendment
suggested that, if the three members of the Legislature should
ask for parole it be granted under the Dominion system, and
this was carried by 26 to 22 and acted upon by the Ottawa auth-
orities. In connection with the Assiniboia Housing scheme, its
alleged mis-management and mis-use of funds and the fact of
$600,000 being involved, W. D. Bayley (Lab.) moved (Mch. 1st)
for appointment of a Select Committee of Enquiry and this, after
some debate, was approved. On May 5th the Committee re-
ported at length as to the general Housing situation and, in de-
tail, as to Assiniboia conditions — which latter involved poorly-
constructed houses, disregard by the Municipality of Rules and
Regulations, improper combination of Offices in the hands of
C. L. Richardson. C. A. Tanner was Chairman and a still more
complete enquiry was advised.
Mr. Dixon moved on Mch. 8 that, in view of the large areas
of land held in the Province by speculators' "this House favours
760 THE CANADIAN ANNUAL REVIEW
an increased application of the principle of the progressive tax-
ation of land values to facilitate the breaking up of land mon-
opoly" ; an amendment moved by two Farmer members — W. C.
McKinnell and W. R. Clubb — declared in favour of an increased
Wild Land Tax and this was carried by 38 to 9. On Mch. 16
an elaborate Resolution was moved by J. T. Haig, K.C. and W. J.
Tupper, K.C., (Conservatives) outlining the history and past re-
lations of Manitoba Governments with the Railways ; declaring
the freight rates of 1903-18 to be fair and reasonable and de-
nouncing the increased rates of 1920 as "excessive and burden-
some" and a direct, unjust tax of $12,000,000 annually upon the
people of Manitoba ; claiming that under still existing agree-
ments between the Government of Manitbba and the C.N.R. and
Northern Pacific, the former had power of control over the rates
within the Province ; directing that these terms be enforced and
rates restored to the figures of 1903.
After an extended debate an Amendment was moved by
Rev. A. E. Smith (Socialist) declaring that "the time has ar-
rived when the railroad systems of the Dominion of Canada
should be nationalized" ; this was defeated by 33 to 8 of .whom
6 were Labour and 2 Farmers and the Resolution was then
voted down by 22 to 12. Mr. Dixon, and Mr. Smith, on Mch. 15,
introduced another Resolution urging that, in view of the Di-
rect Legislation Act of 1916 being declared invalid and uncon-
stitutional by the Courts, the Government should consult with
other Provincial Governments with a view to "having the basis
established constitutionally for the enactment of Direct Legis-
lation by such of the Provinces of Canada as may desire so to
do." After debate, it carried without a division. Another La-
bour resolution (Mch. 15) prepared by W. D. Bayley referred,
in general terms, to the need of "a more progressive spirit" in
Educational administration and in text books, etc., so as to better
equip children for "facing the problems of citizenship" — with
speeches which raised issues of Labour and Socialism.
Duncan Cameron (Lib.) moved an amendment (Mch. 29)
expressing appreciation as to policy of the Advisory Board and
the University, which was carried; Joseph Bernier then moved
another amendment declaring that "the surest method to attain
the progressive spirit and to secure individual development, ef-
ficient and intelligent participation in society, is to base the
whole system of Education on the teaching of the fundamental
social principles of respect for legally constituted civil author-
ity, and on the teaching of religion as given to mankind by Jesus
Christ," and this was defeated by 34 to 4. On motion of Messrs.
Queen and Ivens (Socialists), it was resolved on Mch. 29, that
"a Fund should be provided by the Province to give to each per-
son, upon his discharge from the Provincial Goal, a sum of $10
in cash, and such clothing as is necessary for warmth and de-
cency"; another motion by Mr. Queen declaring that no public
moneys should be spent on the Reception to H. E. the Governor-
FINANCIAL CONDITIONS AND LEGISLATION IN MANITOBA 761
General during his coming visit, was voted down after debate.
Two days later H. E. the Duke of Devonshire was cordially wel-
comed by the House and gave a brief farewell speech.
Mr. Ivens and Mr. Queen, on Apr. 5th, moved a Resolution
declaring that "the capitalistic system is the prime cause of in-
ternational friction and war" and urging a policy of disarmament
upon the Federal and Imperial Governments, which was voted
down ; another Resolution reviewing the past and present im-
portance of Immigration and urging the Legislature to declare
itself "as being most heartily in favour of a very active Im-
migration policy, and that a substantial sum of money be set
aside for the promotion of such policy" — with immediate Gov-
ernment action, was carried by 25 to 18; Mr. Ivens (Socialist)
and M. J. Stanbridge (Lab.), proposed a motion approving the
Rural Credits and Farm Loans policy and declaring that "the
present Savings Offices should be developed into a complete
Provincial Banking system," which was rejected by 28 to 17. A
Socialistic trading Resolution was moved by Messrs. Queen and
Ivens on Apr. 7th, which declared (1) that the major portion
of the Provincial population was of the working class and were
suffering severely from the depression and (2) that the Dom-
inion Government should at once seek to establish trade relations
with the Federated Soviet Republic of Russia. After debate,
this was rejected by 36 to 12. A motion of Mch. 31, which was
discussed at length and finally carried by 27 to 21, specified a
recent Dominion Government advertisement of Pulpwood lim-
its for sale east of Lake Winnipeg, and protested against such
sales until the question of control over Natural Resources was
finally disposed of.
The most difficult matter of the Session for the Government
to deal with was a Resolution moved on Apr. 12 by A. E. SmithV
and W. D. Bayley declaring that "the time has arrived when the
Executive Council for the administration of the affairs of this
Province should be selected from and by the present represen-
tation in this Legislature" ; two Farmer members ( W. R. Clubb/
and W. C. McKinnell) moved an amendment that such action
should be taken after the next Provincial Election and this was
rejected by 44 to 6; the House then divided upon the main mo-
tion and gave an equal vote of 25 for and 25 against, with the
Speaker's casting vote in the negative. This saved the Govern-
ment for the time being. A Resolution on Apr. 20, reviewed the V
taxation difficulties in respect to non-payment of obligations
and taxes by Soldier settlers and urged that the Soldier Settle-
ment Board Act be amended to provide that, while the lands
of settlers, whose contracts were cancelled by the Bfcard, were
held by the Board, the lands should be assessable under the Mun-
icipal Assessment Act, and the Government of Canada should
pay the taxes levied annually upon the lands until the said taxes
were assumed and paid by another settler or purchaser from the
Board.
762 THE CANADIAN ANNUAL REVIEW
Another motion (Apr. 21) proposing that the appointments
of existing officials under the Manitoba Temperance Act should
be cancelled and their duties transferred to the Police or Comp-
troller-General's Department, was rejected by 24 to 16; still
another was approved and it urged upon the Dominion Govern-
ment and the National Railways the completioin of an extension
running north from Ste. Rose. On Apr. 27, out of a number of
minor Motions moved by J. T. Haig as Conservative leader —
upon various Estimates — some were defeated and others ap-
proved; a division took place upon a Motion by the two Ruth-
enian members denouncing District administration of Educa-
tional matters by Official Trustes with 26 negative votes to
11 in support; Mr. Haig and Mr. Tupper urged, by Resolution,
an adequate system of Pensions for Teachers, but were voted
down as, also, upon a motion declaring the. current Educational
grants wholly inadequate — 23 to 18; a motion to abolish the
Public Utilities Commission was carried by 24 to 21 ; a unani-
mous Resolution granted authority to the Minister of Agricul-
ture to appoint a Special Committee of members to enquire into
the matter of Fuel and Illuminating Oils.
A Motion, on Apr. 29. by Mr. Haig declared that administra-
tion of the Temperance Act should be placed in the hands of
the Provincial Police Commissioner, but it was voted down by
25 to 12; another one declaring the Civil Service Commission of
the Province to be "inefficient, unnecessary and a public bur-
den" was, also, rejected, as were a number of other amendments
to Supply moved by Mr. Haig, Mr. Dixon and others. A Report
from the Railways Committee declaring that the Provincial
Telephone Utility should be operated at cost and expressing
confidence in the new Commissioner (J. E. Lowry) to deal
with the proposed increase of rates, was discussed at length on
May 3rd. Messrs. Haig and Tupper, by Resolution, deprecated
the current Telephone deficit of $392,688 ; claimed that the fig-
ures showed a profit in the City of Winnipeg met by a rural de-
ficit of $409,000 and urged a careful Enquiry into the whole sub-
ject ; declared that "the supervision of this Department has been
very bad and the Government, responsible for the inefficient
management of the Telephone System."
The vote was 30 to 13 against this censure of the Govern-
ment. Upon the Report of the Public Accounts Committee, the
Conservative leaders moved an amendment declaring that "in-
stead of there being a surplus of $35,566, there is a deficit on
Consolidated Revenue Account of $691,930," and claiming that
the Comptroller-General's authority was being weakened and
restricted. The vote was 24 to 10 against the motion. A Res-
olution urging the Government to take action to impress upon
the Dominion authorities the sufferings which prevailed amongst
returned soldiers and their families was passed unanimously.
Mr. Queen moved on May 5th that the Dominion Government
be asked to authorize Sunday trains to the Beaches of Lake
FINANCIAL CONDITIONS AND LEGISLATION IN MANITOBA 763
Winnipeg during the Summer months, but it was rejected by
20 to 16. There was a quite unusual number of divisions in the
House during this Session with a total of 71 ; Resolutions, mo-
tions and amendments to Acts were all discussed and voted up-
on with exceptional interest and varied tests of voting strength.
Legislation of the Session included an amendment extend-
ing the War Relief Act for a year in order to help returned
soldiers and to enable veterans to redeem property lost through
non-payment of taxes; established a Board to regulate boxing
and wrestling exhibitions and another giving the Board of Cen-
sors drastic powers in respect to motion picture films and their
rejection; enacted a Net Profits Tax which provided for a 2 per
ce.nt. tax on net profits of all business institutions — professional
business excepted ; incorporated the Winnipeg Driving Club but
without any provisions for conducting or not conducting betting
at the Races ; increased automobile license fees from the flat
$10 rate to $12 for cars of 20 horsepower and 50 cents for each
additional horsepower over that amount; amended the Housing
Act so as to give Veterans power to borrow under the Act to
relieve themselves of mortgages held by private corporations
on their property ; amended the Shops Regulation Act to permit
book stores and firms selling stationery to remain open at
nights and taxing Pool-rooms and bowling alleys under the
Amusements Taxation Act.
Other measures provided for the loaning of $200,000 to the
Brandon Winter Fair Board for the construction of buildings ;
revised and consolidated the St. Boniface Charter in a Bill of
1,000 sections ; provided for the sale of goods in bulk and for
any person selling stock to furnish an affidavit showing names
and addresses of all creditors before obtaining goods from a
wholesaler ; amended the Workmen's Compensation Act to pro-
vide for increase in funeral expenses from $100 to $150, to pay
members of the Board at the rate of $15 for each meeting, to
afford protection for the employer as well as his employee and
to increase the maximum amount payable widows and work-
men to $60 per month ; altered the Housing Act so as to auth-
orize municipalities to advance money to Veterans or widows
of Veterans ; authorized the Provincial Treasurer to make tem-
porarv advances, through Treasury Bills, in respect to the
Mothers' Pensions Act; revised various definitions and regula-
tions under the Inspection and Regulation of Shops Act; pro-
vided for the erection of Agricultural and Community Districts
with full power to acquire and provide a community building with
club rooms or recreation rooms, or any other building author-
ized under the Municipal Act, up to a total of $15,000 borrowed
capital ; repealed all existing Noxious Weeds legislation and pass-
ed a new Act dealing with this agricultural difficulty and regulat-
ing destruction by Owners, by Railway companies, by Threshers,
by Municipal Councils, etc., with, also, the appointment and
duties of Inspectors and a Weed Administrator.
764 THE CANADIAN ANNUAL REVIEW
The Provincial Lands Act was amended so that a munici-
pality could purchase at its own tax sale any right, interest, or
estate, in any Provincial lands, within the municipality, of any
occupant, purchaser or claimant thereof ; in such cases the Land
Commissioner could recognize the claim of the municipality as
a lien upon the lands for charges and costs ; when such right
was cancelled by the Commissioner, the Government could sell
the lands to the municipality upon terms satisfactory to the
Land Commissioner, making deduction to the municipality. The
Assessment Act, which had been the subject of far-reaching
amendments in 1920, was further amended in 1921 to embody a
number of changes found advisable by the Tax Commission in
its operations during the year ; a new provision made leaseholds
taxable in every case where, by reason of any claim for exemp-
tion, the estate in fee simple was not taxable ; it was provided
as to islands in or near any city, town or village, chiefly appro-
priate or adaptable for farming, stock-raising or market gar-
dening purposes that they be assessed at full value and so
with lands in rural municipalities improved for other purposes ;
buildings were to be assessed at two-thirds of their value and
the time for redeeming lands sold at tax sale was reduced from
two years to one.
The Public Schools Act was variously amended — especially
as to altering the boundaries of school districts and uniting ex-
isting districts; changing the compensation for conveying chil-
dren to Union Schools up to 50 cents per day; limiting the
amount to be levied by rural municipalities for supplementing
the Legislative grants to $60 per teacher per month and increas-
ing the levy of $1.20 per day for fractional periods to $3.60 per
day. Another Act provided for the licensing and bonding of all
persons carrying on, in Manitoba, the business of a dealer in
foreign exchange or an agent for the selling of tickets for
transportation across, or over, any ocean, where such tickets
were sent by the dealer at the request of the purchaser to some
person in another country; where the application was approved
the applicant was required to enter into a bond for $3,000 and to
pay an annual license fee of $10. The Municipal Act was amend-
ed in various details as was the Fires' Prevention and the Game
Protection Acts — with a close season for Beaver from May 1st,
1922, to Sept. 1st, 1925, and a declaration that "fur-bearing
animals bred and reared on licensed game or fur farms shall be
regarded as domestic animals."
Amendments to the Public Libraries Act provided that the
Council of any town, village, etc., could establish a free library
upon receipt of a petition duly signed by 25 per cent, of the
names on the revised voters' list and authorizing the Govern-
ment to constitute the Extension Service Advisory Council a
Public Library Board to assist in establishing Free Public Li-
braries. The Electrical Power Transmission Act was amended
so as to make it possible for any incorporated village to secure
FINANCIAL CONDITIONS AND LEGISLATION IN MANITOBA 765
electrical power for lighting, heating or power purposes with-
out submitting the matter to a vote of all the ratepayers. A
Horticultural Societies Act was passed to assist Manitoba Hor-
ticultural Societies and to incorporate the Manitoba Horticul-
tural and Forestry Association. The Unoccupied Land Tax of
1918 was amended by increasing the special tax on unoccupied
lands from one-half of one per cent, to two per cent, and the
maximum tax from 20 cents to 80 cents per acre while the Dairy
Act of 1915 was amended to provide that all milk and cream
testers, operating a milk or cream testing apparatus, must be
licensed. The Act as to Home Economic Societies was amended
to change the name to Women's Institutes and giving power to
hold property, etc.
The Public Amusements Act of 1916 was amended to apply
to all circuses, menageries or carnival shows, billiard halls or
pool rooms, and all were required to take out licenses and to
collect the Amusement Tax. Motor Vehicles were charged a
new scale of license fees including $12 for registration and 50
cents per horse-power for every horse-power over 20 h.-p. The
Rural Credit Act was amended making specific provision for
loans as payment of not more than half of the cost of erecting
silos and repealing the provision which limited the total amount
any one Society could lend in one year to $40,000 and special
provision was made whereby, in case lands were sold or leased
on crop payment, the lien of the Rural Credit Society should
have priority over all crop deliveries or payments. The pro-
visions of the Co-operative Associations Act were made ap-
plicable to all co-operative associations carrying on business in
the Province whether incorporated under the Act or not. Arr
amendment to the Manitoba Farm Loans Act raised the rate of
interest which could be charged by the Association on loans
from 6 per cent, to 7 per cent., while the rate which the Associ-
ation could pay on its bonds, stock or other securities was raised
from 5 per cent, to 6 per cent. ; the share capital of the Farm
Loans Association was reduced from $1,000,000 to $500,000 divid-
ed into 110,000 shares of $5.00 each. The Provincial Aid al-
lowed to incorporated Public Hospitals was raised from 25 to
50 cents per day.
Incidents of the Session included the refusal of the House
to restore the contract arrangement which the City of Win-
nipeg had with the Winnipeg Electric Railway respecting fares
and which the Public Utilities Commission had abolished; the
rejection of a Brandon Bill which asked for power to operate its
own Electric light plant after having given this right, as an ex-
clusive one, to a private corporation; the unsuccessful fight of
Piano tuners and Osteopaths — backed by the Labour members —
to secure incorporation as professions; the holding over to the
next Session of a Bill listing vacant lands and another placing
control of all Child Welfare organizations under the Govern-
ment with appointment of a Director of Child Welfare ; the de-
766 THE CANADIAN ANNUAL REVIEW
feat on 2nd reading (29 to 12) of the Labour Bill for an 8-hour
day (Apr. 26) and the combination of the Conservative, Labour
and Farmer leaders in support (Apr. 4) of the Government up-
on the Official Trustee system; the appropriation of $1,000,000
for expenditure upon Insane Asylums and Mr. Ivens' allegation
that war and economic conditions were the cause of the trouble ;
the outspoken attack by Hon. T. H. Johnson, Attorney-General,
on Apr. 5th, upon William Ivens (Soc.) as to his Disarmament
Resolution and his speech declaring that "capitalism must be
destroyed."
Mr. Brown, Provincial Treasurer, told the House on Apr.
7 that the Government was no longer making advances to Rur-
al Credit Societies out of the Consolidated Fund, but was issu-
ing cheques against Capital account. Other incidents included
the approval of an increase in Ministerial salaries from $5,000
to $6,000 and in Sessional indemnities from $1,500 to $1,800; the
failure of the Attorney-General to carry a measure providing
for Preferential voting in single-member constitutencies where
more than two Candidates were in the field ; the defeat of John
Queen's measure permitting "peaceful picketting" and the dec-
laration by Mr. Premier Norris that no such thing as peaceful
picketting could exist'; the fact that A. E. Smith and William
Ivens (Socialists) made three-day speeches during the Session.
The House was prorogued by the Lieut.-Governor, on May 7,
after considering 222 Bills and passing 55.
The field crops of Manitoba in 1921 were the
Agriculture largest since 1915, despite two weeks of excessive
*nd,M!ni?g keat anc^ drouth m J^y and a share in the Hail-
The ^United' storms> black and red rust» grasshoppers and bud-
Farmers in worms — with the Weed pest ever present. The de-
1921; Educa- cline in prices continued steadily and general con-
tional Con- ditions put a premium on the personal qualities
ditions of 0£ frugality and thrift; changes in every phase of
industry were present and, as Mr. Malcolm, Min-
ister of Agriculture, put it at Christmas time of
this year, "the demand in 1917 and 1918 was to furnish quantity
without regard to quality, but to-day, all producing countries
are vicing with one another for the best markets of the world,
and it is quality rather than quantity which counts."
The yield of field crops in 1921, according to Federal stat-
istics, was $72,129,500 in value compared with $133,989,900 in
1920. The chief items were Spring wheat 39,054,000 bushels at
$35,533,000; 49,442,500 bushels of Oats at $14,833,000; 19,681,600
bushels of Barley at $8,463,000; 3,564,700 bushels of Rye at
$2,816,000; 5,858,200 bushels of Potatoes at $2,636,000; 378,500
tons of Hay at $4,921,000; 124,900 tons of Fodder corn valued at
$1.124,000. The main reduction from 1920 was in Spring Wheat
with a crop of 37,000,000 bushels valued at $68,000,000 compared
with the 1921 product of 39,000,000 bushels worth $35,000,000.
AGRICULTURE AND MINING; EDUCATION IN MANITOBA 767
Oats also fell $17,000,000 in value and Barley Sy2 millions. There
was the same remarkable decrease in Farm live-stock values,
as other Provinces experienced, with a rather exceptional in-
crease in numbers. Horses numbered 419,789 in 1921 or an in-
crease of 63,000; Cattle were 817,759 or an increase of 60,000;
Swine were 224,704 with a small increase and Sheep 131,361
with a small decrease. In values Horses stood out at $37,305,000
or a loss of $3,000.000 ; Cattle at $24,508,000 or a loss of $14,000,-
000; Sheep at $783,000 and Swine at $3,039,000 or a combined
decrease of $2,200,000 in value. The following table (Dominion
figures) illustrates the agricultural condition over a 4-year
period, and the influence of deflation in prices :
Product 1918 1919 1920 1921
Field Crops $180,508,000 $182,097,000 $133,990000 $72136000
Farm Animals 13,781,000 12,990,000 9,342,000 5,738,000
Wool 556,000 538,000 211,000 71,000
Dairy Products 11,420,000 13,092,000 15,084,000 15,084,000
Fruits and Vegetables 1,900,000 1,900,000 1900000 1900000
Poultry and Eggs 3,640,000 3,640,000 4,095,000 5,005,000
Fur Farming 82,000
Totals $211,805,000 $214,257,000 $164,622,000 $100,016,000
The Dairy industry had a fairly successful year. With 8
fewer Creameries, than in 1920, the output of Butter was 8,550,-
105 Ibs. with a Provincial estimate of value as $3,163,538; the
output of Dairy butter was 9,888,103 Ibs. with a value of $2,274,-
263 and of Cheese 269,524 Ibs. worth $51,209; that of Milk, Ice
Cream and Cream was valued at $7,100,418. The total of Dairy
products was $12,589,431 compared with $15,939,846 in 1920.
According to Provincial statistics the number of farmers in the
Province in 1921 was 55,184 compared with 46,622 in 1916.
George Batho, of the Agricultural Department, estimated (Dec.
14) the average price received by farmers for wheat per bushel
as $1 ; oats 33 cents ; barley 44 cents ; potatoes 45 cents per bush-
el. The price received in 1920 was : Wheat $1.83 ; oats 56 cents ;
barley 80 cents; potatoes $1.36. Other figures of production in-
cluded wool clippings estimated at 788,295 Ibs. worth $110,000;
a Fur production which showed a large decrease with a total
value of $1,046,000 in 1921 ; a Fisheries product, in 1920, of
$1,249,607.
Incidents of the year included a sale of Silver fox-skins at
Winnipeg (Apr. 27) with 262 lots disposed of at $55,000 and lynx
advancing 50 per cent, in price, mink and beaver 30% and mar-
ten 20% ; the Natural resources production of Northern Mani-
toba were not available for 1921, but the 1920 total was $2,826,404
and there was continued progress during the current year; the
latest Census figures of Winnipeg's industrial growth showed
(1918) 745 establishments, $84,546,712 of investment and $118,-
844,737 output; total Imports into the Province (Mch. 31, 1921)
were valued at $64,823,482 and Exports, $25,422,155. In con-
nection with the Weed nuisance and the continuous Government
effort to keep it under control, S. A. Bedford, Chairman of the
Manitoba Weed Commission, in co-operation with Saskatchewan
768 THE CANADIAN ANNUAL REVIEW
and Alberta officials, took a "Weed Special" train through the
Provinces in January ; manned by a staff of well-known experts,
and equipped with the most approved weed-fighting apparatus,
the "special" comprised two lecture cars and one demonstration
car — the latter fitted up with posters to illustrate the most ap-
proved methods of weed eradication and its sides decorated with
illustrations of the principal weeds that plagued the farmers
with, also, posters describing the methods of control. Agricul-
tural appropriations during 1920-21 amounted to $804,868, while
the Agricultural Instruction grant (Federal) given in 1921, for
the ensuing year, was $79,113.
As usual, in Manitoba, the Agricultural Society meetings of
the year were important with various Live-stock Associations
and the Grain Growers' organization all meeting in Brandon on
Jan. 10-12. The Hon. G. J. H. Malcolm, Minister of Agriculture,
addressed the combined interests and described the work of his
Department ; he urged a united Agricultural exhibit of the Wes-
tern Provinces at some United States centre ; he stated that the
Agricultural College was costing the Province $193,000 a year
and should expand further in its assistance to the farmers. The
Cattle-Breeders' Association passed a Resolution urging the
necessity of pressing for removal of the Cattle Embargo — the
fulfilment of the British Government's "definite undertaking";
C. W. McMillan of Winnipeg was elected President and, also,
of the Manitoba Shorthorn Club.
The Sheep Breeders' Association urged the advisability of
having all woollen and worsted goods stamped with the exact
percentage of virgin wool, shoddy, cotton or other textile fibres
included in their make-up; George Gordon, Oak Lake, was re-
elected President for a third term. The Horse Breeders' Asso-
ciation urged better inspection of breeding animals with a check
upon admission into the Province ; H. Galbraith of Hartney, was
elected President. The Swine Breeders' Association was told by
W. C. McKillican, retiring President, that for years, owing to
the high prices of grains, pork could not be produced at a profit
save during a few months in the year, but the country now was
full of cheap feed in excess of the local demand, and, though live
pork prices had slumped, it was possible to feed pigs profitably
on marketable grain; A. C. McPhail, Brandon, was elected
President.
The United Farmers of Manitoba. This organization held
a most important annual Convention at Brandon on Jan. 12-14,
1921, with a rather notable address from President J. L. Brown,
of Pilot Mound, who, later in the year, was elected to Parliament
as a follower of Mr. Crerar. He referred to the organization of
the Manitoba Co-operative Dairies, Ltd., formed out of
the Manitoba Milk Producers' Association, with the approval
and assistance of the U. F. M. Directorate, as having great pos-
sibilities for good and he favoured also the establishment of a
Wheat pool ; he denounced the arguments and policy of Protec-
AGRICULTURE AND MINING; EDUCATION IN MANITOBA 769
tionists and made some shrewd points on the fiscal issue while
declaring frankly that no economic policy could have prevented
an after-war depression though it might have ameliorated con-
ditions; claimed that the means of relief were (1) a tariff pol-
icy based on the idea that exchange or trade is mutually benefic-
ial and (2) reduction in the cost of production and distribution.
The Directors' Report reviewed the work of political or-
ganization and stated that collections for the purpose to Dec.
31, 1920, totalled $54,691, and that the Committee in charge, with
E. E. Bayne as Chairman, had been incorporated as the U. F. M.
Political Executive ; urged, as practicable, the formation and op-
eration of a Manitoba Co-operative Wheat-pool; described the
Educational campaign of speech and pen organized to reach peo-
ple throughout the Province and culminating in a Short Course
under the joint auspices of the Agricultural College, the Man-
itoba University and the U.F.M. The Political Committee re-
ported as to preliminary organization and the work of 900 per-
sons covering the Province and labouring, especially, with a
view to the Federal elections. D. G. McKenzie and R. A. Hoey
were the chief organizers. The Secretary reported 15,825 mem-
bers or an increase of 6,171 during 1920 with 391 Locals or an
increase of 99; an immense amount of campaign literature had
been issued and the United Farm Women had been very hejlj>
ful in propaganda. The Auditors showed Receipts of $26,4o8
and a balance of $1,077 in hand. *
The most important matter before the Convention was that
of Political action ; the first step was the passage of a Resolution
declaring that "circumstances demand that the United Farmers
of Manitoba give definite and purposeful attention to public
questions in the Provincial sphere, and to the responsibilities*
which the future may call them to undertake"; the next was to*
confirm the action of the Directors in communicating with Lo-
cals throughout the Province "in regard to the formulation of
principles relating to the various fields of legislation which
come under the Provincial control"; the Convention then asked
all Locals and leaders of agricultural thought to consider the
question carefully in the next two months and to send in the
result to the Central Office ; the Board was directed by Resolu-
tion to take into consideration all their material, coming in or
already collected and from it prepare a Platform to submit to
the Local and District bodies. In the following November all
these bodies were instructed by further motion to consider,
vote and report upon this draft Platform ; a final completed draft
was then to be prepared and submitted to the 1922 Convention.
As to interim emergencies, this Resolution, also, was pass-
ed : "Should a Provincial election be announced during the year
1921, the Board shall be required to formulate and issue forth-
with, in brief form, the main principles upon which there is most
general agreement, which shall form the temporary Platform
along the lines of which Conventions called under U. F. M. aus-
770 THE CANADIAN ANNUAL REVIEW
pices in the Provincial constituencies may act." A series of
motions were then passed as to calling of Provincial Conven-
tions and various details of organization. Meanwhile, N. P.
Lambert, of the Canadian Council of Agriculture, had addressed
the Delegates as to co-ordinated action amongst Provincial
bodies; other speakers were G. F. Chipman of The Guide, Mrs.
George Brodie, President of the U. F. O. Woman's organization,
Hon. T. A. Crerar, Hon. Duncan Marshall of Alberta, H. W.
Wood, President U. F. A., J. R. Murray of the United Grain
Growers' Co., M. A. Brown, Medicine Hat. The following were
the chief Resolutions adopted, in addition to those of a Provin-
cial political nature.
1. Emphasing the principle "that further development of the Brit-
ish Empire should be sought along the lines of partnership between
nations free and equal; that this development has been steadily in the
direction of more complete autonomy for the great self-governing Do-
minions ; that the time has now come when, except in cases where ques-
tions of constitution are involved, the Supreme Court of Canada should
be the final Court of Appeal."
2. Urging the British Government to fulfill a "definite undertaking
to remove the Cattle Embargo.
3. Viewing with apprehension the plans of the Western Coloniza-
tion Association to promote settlement and suggesting that this Associ-
ation direct "its efforts to the improvement of the conditions of the pres-
ent residents of the land, and the solution of the especial problems"
facing the Western farmer.
4. Endorsing the policy of the Council of Agriculture as to the co-
operative selling of wheat.
5. Reiterating the Association's stand upon Prohibition and de-
claring that the legislation now under operation should be given at least
three years' sympathetic administration.
6. Asking "for a more simple and less expensive system of collect-
ing the present Income Tax."
7. Supporting the Provincial Government plan of Savings Banks and
trusting that it would lead to a National banking system.
8. Requesting the Railway Commission to make it "compulsory on
all Railway Companies to install telephones in all their station houses,"
and the Provincial Government to instruct Provincial Telephone ex-
changes to give subscribers, on request, the daily closing prices of the
Winnipeg market.
9. Endorsing the appointment of Mr. Crerar as Leader of the New
National Party.
10. Suggesting the fixing of a Minimum wage for Nurses-in-training
and approving the annual Provincial grant to Children's Aid Societies.
11. Supporting the claim of Manitoba to own and control its Na-
tural Resources.
12. Urging the Dominion Government to apply revenues secured
from terminal elevator overages toward the reduction of inspection and
weighing charges.
13. Declaring that the fullest success of Co-operative Wheat Mar-
ketting schemes could only be realized in joint action by the Western
Provinces.
14. Demanding that women be given rights to naturalization sim-
ilar to those of alien men ; that the wife of an alien "be naturalized in
like manner and with the same effect as if she were femme sole, but her
naturalization shall not affect the status of her children of alien male
parentage, whether born before or after the date of her naturalization";
that the wife of "a naturalized British subject be given the right to take
AGRICULTURE AND MINING; EDUCATION IN MANITOBA 771
out personal naturalization papers"; that "when a woman who is a
British subject marries an alien, it shall be lawful for her to make a
declaration that she desires to retain British nationality, and thereupon
she shall be deemed to remain a British subject."
15. Condemning an alleged campaign by the "privileged interests"
to stifle the free expression of low-tariff thought through the remov-
al of advertising from a part of the Press.
16. Protesting against the Hanna order as to no politics, or politi-
cal candidacy amongst the employees of the National Railways.
17. Declaring the Association "believers in equal property rights as
between husband and wife, and the safeguarding of the rights of chil-
dren."
18. In view of "the catastrophe brought upon the whole human
family by a militaristic nation, the foundations of whose power were
built upon compulsory military training in schools, we express ourselves
as utterly opposed to any system of military training in the schools of
Canada."
19. Commending "to the favourable attention of every U. F. M. Lo-
cal, the campaign of the Manitoba Co-operative Dairies, Limited, in se-
curing the necessary stock basis for their operations."
20. Protesting against the recent increase in freight rates as a sub-
sidy to the C. P. R. and declaring that any deficit in Government Rail-
ways should be borne by the Dominion Treasury.
21. Urging concerted Provincial action to obtain the power to make
Direct Legislation a law.
22. Asking the Council of Agriculture to investigate the Canadian
Banking system.
23. Opposing restrictive legislation as to carrying fire-arms.
24. Asking the Provincial Government "to adopt the tonnage sys-
tem of taxation on motor licenses, thus placing an equitable tax on all
motor-driven vehicles."
The officers of the U. F. M. elected for 1921-22 were as fol-
lows: Hon. President, J. W. Scallion, Virden; President J. L.
Brown, Pilot Mound; Vice-President, C. H. Burnell, Oakville;
Secretary, W. R. Wood, Winnipeg. The Executive consisted of
these officers with R. J. Avison, Gilbert Plains; Peter Wright,
Myrtle; Mrs J. S. Wood and Miss M. E. Finch. Following this
Convention that of the Manitoba Co-operative Society was held
in Winnipeg on Feb. 9, and, after an address from Hon. T. A.
Crerar, a Resolution was approved proposing a Committee from
the Federation of Manitoba Co-operative Societies to meet with
Committees from the United Farmers of Manitoba, and the
United Grain Growers, in order to draw up a definite plan for
linking together the various Co-operative societies of the Prov-
ince, to deal with collective buying, formation of new societies
and central supervision as to management and accountancy and,
also, to plan affiliation with the Canadian Co-operative Union.
In the press of Apr. 30, the proposed tentative platform of
the U. F. M. was made public with, incidentally, the approval of
its general proposals by the Manitoba Free Press. The chief of
these were as follows: Direct legislation; Proportional repre-
sentation in grouped constituencies ; the Preferential ballot in
single member constituencies ; equality of sexes before the
law; compulsory education; encouragement of secondary and
university education; safeguarding of the public health; child
welfare ; reform of prison and correctional methods ; improve-
772 THE CANADIAN ANNUAL REVIEW
ment of farming conditions; extensions of such aids to agricul-
ture as the Animal Purchase Act, Rural Credits, Farm Loans,
Provincial Savings; the securing of the natural resources; al-
location of taxation between the Dominion and the Provinces.
The United Farm Women of Manitoba. This Convention
was held a day before the men's gathering at Brandon and open-
ed with an address by Mrs. J. S. Wood, President, who described
the vital principles of the organization as being "development of
the co-operative spirit, cultural advancement and the common
good of all mankind." For years they had fought for Prohi-
bition and, at last, the will of the people had prevailed; since
the last Convention the women for the first time, had the priv-
ilege of taking part in a Provincial election and in a Prohibition
referendum ; they had assisted in the conduct of the Election by
assuming the responsibility of holding office and "the presence
of the women at the polls seemed to have a steady effect."
The Secretary, Miss M. E. Finch, reported 42 Women's Sections
organized in 1918, 29 in 1919, and 30 in 1920, making a total of
101 to date — 20 of these were not in good condition ; the mem-
bership was estimated at 1,200 with 234 associate or young peo-
ple members; 15 sections reported Libraries and 9 of them
Travelling Libraries. Mrs. J. S. Wood, Oakville, was re-elected
President ; Mrs. James Elliott, Cardale, was elected Vice-Presi-
dent, and Mabel E. Finch, Winnipeg, re-elected Secretary. The
following Resolutions were adopted :
1. Urging that the scope of the Mothers' Allowance Act "be widen-
ed so that a family shall be eligible where the father is physically
disabled through tuberculosis or otherwise, and totally unable to provide
for his family's maintenance.
2. Declaring that current Temperance legislation must be given at
least three years' sympathetic administration.
3. Asking the Provincial Department of Health to promote greater
interest in Better Baby Conferences throughout the Province, and pledg-
ing co-operation ; expressing appreciation of the work of the Department.
4. Deploring the alleged conditions on Railways for the transpor-
tation of the sick to Hospitals — patients and attendants, after paying
first-class fare, being often compelled to travel in a baggage car with
absolutely no conveniences.
5. Urging the need of Domestic help and the appointment of a
Provincial Woman representative to act with the Federal Immigration
authorities.
6. Asking for Naturalization equality — as per resolution also passed
by the U. F. M.
The Public Schools of Manitoba. Robert Fletcher, Deputy-
Minister, reported to Dr. R. S. Thornton, Minister of Education,
for the year of June 30, 1921, an increased registration of pu-
pils—129,015 as compared with 123,452 in 1920; an enrollment
in the Summer School classes of 242 with 201 in residence at the
Agricultural College, and 162 teachers attending one or more of
the courses which covered nature study, manual training, pri-
mary methods, household art, household science, basketry,
methods in history and geography, art drawing, etc. ; a total of
AGRICULTURE AND MINING; EDUCATION IN MANITOBA 773
110 consolidated School districts and 246 rural residences pro-
vided for teachers, with 42 others in villages or hamlets and 5 in
towns ; the provision of residences also for caretakers at a few
of the schools; the issue of Debentures totalling $2,629,414 for
the construction of new school buildings or enlargement of
others; a total Expenditure by the Government in 1920-21 for
Educational purposes of $1,887,461, of which $1,008,797 went for
administration and grants, $212,998 for the University of Mani-
toba, and $332,265 for Manitoba Agricultural College; in the
High Schools there was an enrollment of 8,615.
The Provincial Normal School, under W. A. Mclntyre, re-
ported 309 students of whom 24 were men, with an increasing
number taking 1st Class professional work; stress in the past
15 years had been laid upon community as well as school services
of the teacher, with training in co-operative activity as a devel-
oping aim. The Brandon Normal School reported 48 pupils of
whom one was a man; the Winnipeg Public Schools under Dr.
Daniel Mclntyre, reported 874 teachers and 35,766 pupils enroll-
ed. The Inspector, in an elaborate report, specified 56 school
buildings containing 717 regulation class rooms, 12 scientific
laboratories, 13 household arts rooms, 11 household science
rooms, 26 manual training rooms, 15 technical shops and 26 audi-
toriums with the necessity of 60 additional class-rooms every
year; his special reports from the Medical Inspector, Nurses,
Oculists, Little Nurses' League, and Dental Inspector — the lat-
ter with operations running up to nearly 14,000— indicate the
wide range of school activities. The total Free text-books dis-
tributed in the Province were 58,537; the Industrial Training
School at Portage reported 114 boys.
The Juvenile Court in Winnipeg heard 1,248 cases of of-
fenders during the year of whom 1,001 were boys under 16 and
414 were charged with theft or shop-lifting, 229 with disorderly
conduct or wilful damage, and 272 with breach of City by-laws ;
the Manitoba School for the Deaf — including all four Western
Provinces — had 164 pupils; D. S. Hamilton, Superintendent of
the Children's Act, reported 20,000 children as benefitted and
helped in the past 22 years and in the current year 558 wards
cared for with 452 children supervised in their homes and 494
cases received during the year. The Director of Technical Edu-
cation (R. B. Vaughan) reported as to work placed in his hands
in 1920 and covering 15 classes in Manual training, 11 in Home
economics, 5 High School classes in Agriculture, Evening
schools of a Technical character with 3,571 students in Winnipeg.
The number of School Districts in Manitoba was 2,074, of De-
partments 3,596, of School-houses 1,893 — an increase in each
case over 1920; the number of teachers was 3,708 of whom 796
were male and 2,912 female— 409 1st Class, 1,928 2nd Class, 965
3rd Class, 75 Specialists and 331 Permits; there were 642 stu-
dents attending Normal Schools. The Receipts of the year were
$822,186 from Legislative grant, $6,922,864 from Municipal
774 THE CANADIAN ANNUAL REVIEW
Taxes, $2,250,072 from sale of Debentures, $2,773,212 from notes
or overdrafts — with sundries and balances from previous years
the total was $13,506,292. The Teachers' salaries in 1921 were
$4,549,504 or an increase of $1,253,469.
Educational incidents of the year included a revival of the
School question in popular discussion. Archbishop Beliveau of
St. Boniface, at the close of 1920, had told a winter conference
of the Canadian Educational Union as to the vital need for Cath-
olic religious instruction in the schools and complained of the
hardships of the existing School system to his people; declared
that "to the numerous difficulties which come with the over-
crowding of the primary school programmes, is added, for our
children, this other difficulty of having to make use of a strange
language in order to absorb these too numerous subjects";
stated that "because we of the French language wish to remain
French, while having the knowledge of English which we con-
sider necessary for our interests, we have a double reason for
condemning the programme — (1) because it sins against the
rules of a sane pedagogy and (2) because it is an attempt against
our national life." The comment of the Winnipeg Free Press
(Jan. 5, 1921), was that "the demand which Archbishop Beliveau
makes for his people will also be made — has, as a matter of fact,
already been made — on behalf of Germans, Ruthenians and
Poles." The result, if permitted, would be a polyglot community
and an impossible condition; the situation, to this journal, seem-
ed to involve danger to the School settlement of 1916.
In the Legislature of this year there were five French-
Canadian members, Hon. J. E. Bernier, Maurice Duprey, A. R.
Boivin, P. A. Talbot and Joseph Hamelin, with two Ruthenian
members who stood vigorously for Bi-lingualism and religious
instruction in schools. Mr. Bernier delivered a three days'
speech (Feb. 23-5) upon this subject and demanded the re-
establishment of Separate Schools, while calling for instruction
of the non-English children in their own languages. The sub-
ject was raised in another form in the Legislature, on Apr. 4,
through criticisms of the Official Trustee system under which
Ira Stratton and J. F. Greenway were placed in charge of Edu-
cational Districts containing large elements of Foreign popu-
lation— the former dealing mostly with Ruthenians and the lat-
ter with Mennonites. Under this system school districts where
the ratepayers failed to furnish accommodation, or refused to
en£age competent teachers, were taken in hand and given di-
rection by the Official Trustee until they fully met the require-
ments of the law.
The issue was presented by M. J. Stanbridge (Lab.) who
moved a reduction of the Estimates as to Official Trustees. He
claimed that the services of these officers were unnecessary,
and that, in all cases, the right to control Education should be
in the hands of local Trustees where the ratepayers so desired;
amongst the speakers in support of the motion, which was re-
AGRICULTURE AND MINING; EDUCATION IN MANITOBA 775
jected by 27 to 14, were P. A Talbot, A. E. Kristjanssen, N. A.
Hrynorizuk and D. Yakimischak. The system was criticized as
arbitrary and ineffective ; those in favour of the system declared
that if the power of the Department to intervene by the ap-
pointment of such officers were abolished, Bi-lingualism would
re-appear in most of the non-English settlements. Late in April
the Rev. H. Doerksen and the Rev. H. J. Friesen signed a Mem-
orial which was sent to all members of the Legislature ; it appeal-
ed for Hnguistic liberty in the schools and concluded as fol-
lows : "We harm nobody ; all we ask is to be left alone and, if
we must submit to the present strict and stern way of carrying
out the school laws, that we at least be permitted a few hours
for tuition in our mother tongue."
Other incidents of the year included the 16th annual Con-
vention of the Manitoba Educational Association in Winnipeg
on Mch. 29-31 with 1,600 delegates in attendance; there were
a number of important addresses with P. D. Harris in the chair
and H. D. Cummings, Teulon, elected President for 1921-22.
Another important organization was the Manitoba Teachers'
Federation, which claimed, during this year and the preceding
one, to have (1) created and developed a professional spirit
among the teachers of Manitoba ; (2) aroused public interest in
educational matters to an unprecedented pitch ; (3) increased the
average salary paid to teachers in the Province by more than
40 per cent. ; (4) secured, in co-operation with the Trustees'
Association, a Board of Reference to settle disputes between
Teachers and School Boards. On Sept. 19, the Manitoba Law
School was formerly opened at Winnipeg by Sir James Aikins
with addresses also by R. W. Craig, K.C., Theo. Hunt, K.C., and
the Attorney-General (Hon. T. H. Johnson) ; during the year
Archbishop Matheson of Winnipeg, President J. A. MacLean of
the University, Rev. Dr. David Christie, Winnipeg, and Alfred
E. Hill, Brandon, were appointed to the Advisory Board of the
Department of Education; Dr. T. Glen Hamilton was elected
President of the Manitoba Medical Association.
The University of Manitoba and other Institutions.
This Provincial University enrolled, during the College year, 1920-21, a total of
2,151 students, an increase of 138 over the previous year. The Registration by
courses was: Master of Arts, 26; Arts and Science, including Special Students,
837; Engineering and Architecture, 123; Medicine, 265; Pharmacy, 30; Law,
107; Agriculture, 57; Home Economics, 19; Special Teachers' Course in Arts,
37; Returned Soldiers' Courses, 32; Summer Course in Pharmacy, 21; Short
Course in Business, 66 ; Economics, 93; Evening Courses, 263; History of Art, 175.
On May 20th, the 44th annual Convocation was held, and 220 degrees conferred
on students by Archbishop S. P. Matheson of Rupert's Land, Chancellor of the
University, while an Honourary L.L.D. was conferred on two men who had been
active in the service of the Province: Spencer Argyle Bedford and Dr. Robert
Johnstone Blanchard.
The Board of Governors reported for 1920-21 that the members whose
terms expired on June 1st, 1921 were Henry Havelock Chown, B.A., M.D., C.M.,
Winnipeg; Norman Platt Lambert, B.A., Winnipeg; Almon James Cotton, Swan
River; and they were re-elected for a period of 3 years from that date. The gift
of $500,000 for the endowment of the Faculty of Medicine from the Rockefeller
776 THE CANADIAN ANNUAL REVIEW
Foundation, was made available for use of the University when the capital grant
of $400,000 for Medical buildings and the increased grant of upwards of $20,000
for maintenance of Medical Teaching were authorized by the Legislature at its
1921 session. This made it possible to erect and equip for use two units of build-
ings to supplement the space and equipment turned over in 1919, to the University,
by Manitoba Medical College and to increase the teaching efficiency. The Board
also decided to inaugurate with the opening of the Session of 1922-23 a higher
entrance requirment calling for the completion of 2 years of undergraduate work
in Arts and Science instead of one, as previously, and with a certain definitely pre-
scribed minimum of Science work.
An important step was taken in the internal administration during the year,
whereby provision was made for the appointment of a Dean of each Faculty, who
should be its chief executive officer; at the same time a General Faculty Council
was created to co-ordinate the work of the various individual Faculties and to
deal with matters affecting the interests of more than one Faculty. On account
of the increasing attendance the Board recommended preparatory work on a new
plant at the Tuxedo site — with 5 or 6 buildings eventually necessary which would
involve the expenditure of, at least, $3,000,000. This the Legislature would be asked
to provide in 6 annual installments, of $500,000 each, commencing with the year
1923. Activities in the University during 1920-21 included the inspection of the
C.O.T.C., number 291 all ranks, on March 10, 1921, by Maj.-Gen. Sir H. E.
Burstall, K.C.B. ; the Extension Service conducted by Professor Stoughton, assisted
by J. A. M. Edwards, up to March 19, which included 83 lectures by 16
lecturers at 51 towns in the Province and adjacent territory, with an attendance
of over 9,500 or an average of 123 per lecture; the conduct of special courses
during the year, in Geology, Rural Economics, Economics of Industry, History
of Art, Business and Commercial Law, a Short Course for Merchants, a Short
Course in Life Insurance, A Special Course for Nurses, a Social Service Course of
27 lectures, a Special Course for Teachers; the accession to the Library of 1,175
works in 1,600 volumes, in addition to a number of bound volumes of periodicals.
The 50th anniversary celebration of the founding of Manitoba College
(Presbyterian), was held Nov. 14-20. This College was founded by the Rev. G.
W. Bryce, M.A., at Kildonan, on Nov. 10, 1871; the classes began with an enroll-
ment of 7 students, and it is interesting to note that amongst the names of the
first Board of Management appointed by the General Assembly were those of the
lawyer who afterwards became Sir Thomas Taylor, Chief Justice of Manitoba,
the Hon. Gilbert McMicken, John Sutherland, M.IV.A., Rev. John Black, and the
Rev. Professor George Bryce, while the Board of Trustees included Donald A
Smith, (afterwards Lord Strathcona), Hon. A. G. B. Bannatyne, M.L.A., and Hon.
Donald Gunn, M.I,.A. In 1874 the College was moved to Winnipeg; in 1883 the
General Assembly established a Theological Department, in addition to that of
Arts; later the College co-operated with Wesley and St. John's Colleges after the
University had provided quarters for them in the year 1890. A radical change
was made in 1914 when the Board took the step of handing over to the University
not only its large body of Arts students but its Arts staff, retaining its identity
purely as a Theological College of the Presbyterian Church. A special Jubilee
Convocation was held on Nov. 18, 1921 to confer the degree of Hon. D.D. on
Rev. Frank H. Russell, of Ohar, India; Rev. J. E. Munro, B.A., of Oakville, Ont.;
Rev. W. W. Clarke, of Saskatoon; Rev. Peter Scott, B.A., of Portage la Prairie.
In the Report of the Board of Directors of Brandon College for the year end-
ing Aug. 31, 1920, issued in April 1921, the enrollment of 418 showed the largest
attendance in the history of the College by over 15 per cent. The graduation list
included 15 in Arts, 2 in Music and Expression, and one in Theology. Appoint-
ments during the year were Prof. Joseph E. Howe, M.A., in the Department of
History; Prof. J. W. Hill, M.A., Chemistry; and Rev. S. Everton, M.A., as Registrar
of the College. Wesley College, Winnipeg inaugurated a drive for funds in the Spring
of 1921 with an objective of $500,000, and by May 1st had $250,000 in cash, with
$150,000 promised. At St. John's College, Winnipeg, the new office of Warden
of the College fell upon Lt.-Col. the Rev. G. A. Wells, C.M.G., D.S.O., with duties
commencing Sept. 1st, 1921.
THE MARTIN GOVERNMENT IN SASKATCHEWAN 777
The first event of the year, in connection with
The Martin the Government of Saskatchewan was the retire-
in°Sa^kScne- m.ent of Sir Richard $• Lake, K.c.M.G., the popular
wan: Ad- Lieut.-Governor of the Province since 1915 and the
ministration, appointment, early in February, of Hon. William
Finance and Henry Newlands, a member of the Provincial Su-
LegUlatkm. preme Court since 1905, as his successor. The
Government of the Hon. W. M. Martin had a dif-
ficult year to face so far as crops and financial conditions were
concerned, though prospects in the former respect were at first
excellent. Politically, Mr. Martin held the confidence of the
people as a whole and, what was more difficult at this juncture,
of the Grain Growers' of the Province. The support of the lat-
ter section, however, was, by the end of the year, becoming
less assured. A triangle of leaders in both the Government and
the Grain Growers — J. A Maharg, C. A. Dunning and George
Langley — who had hitherto helped to maintain the combination
was becoming disintegrated.
Mr. Martin dealt, as usual, fully and frankly, with the cur-
rent issues of the day; his personal opinions were Liberal, but his
policy had been an agricultural one in the main. The Govern-
ment was closely associated with the 20,000 farmer shareholders
c f the Saskatchewan Co-operative Elevator Co., through a joint
investment of over $5,500,000 in its facilities for improving
grain marketting as well as by way of - guaranteed borrow-
ings. Mr. Dunning had been General Manager of this concern
in 1911-16 and Mr. Langley, for years, had been, and was, a
Director of the Grain Growers' Association. At the beginning
of the year Mr. Martin was still Minister of Education and,
speaking at Saskatchewan on Feb. 24, to the School Trustees'
Convention with its thousands of Delegates, he pointed out that,
in such a gathering, it was essential to look at Education from
the standpoint of the many and not of a few ; he referred to
the difficulties of the School situation and hinted at a coming
change in the enforcement of the Attendance law from the Edu-
cation Department to some new central authority.
There was, during this year, as in 1920, an effort to raise
the Separate School question again and the Trustees' Association
passed a Resolution declaring Separate Schools in Saskatche-
wan, whether Protestant or Roman Catholic, to be "distinctly
prejudicial to harmony and co-operation," and urging the Pro-
vincial Government "to take action towards the abolition of all
Separate Schools and denominational Public Schools in the
Province"; another Restlution, also unanimous, declared that ^
"the English language should be the only language of instruc-
tion in the Schools of Saskatchewan" and urged the Govern-
ment to at once take action. The Premier met this issue on
May 18, at another Saskatoon Convention, with an expression of
regret at the raising of the issue, and quotations from the terms
of the Confederation Act and the Union Act of 1905 which guar-
778 THE CANADIAN ANNUAL REVIEW
anteed preservation to minorities of all School rights possessed
at entry of the Province into Confederation:
The effect of this Section is to continue in force whatever rights
the minority, whether Catholic or Protestant, possessed under the pro-
visions of Chapters 29 and 30 of the Ordinances of the North-West
Territories passed in the year 1901, privileges which had been in force in
Territorial days for many years, providing for the establishment of
Separate Schools, whether Catholic or Protestant. I think I may say
the system in Territorial days operated very satisfactorily, and, in the
judgment of the Parliament of Canada, in 1905, the enactment constituted
a happy solution of a vexed question. Minority rights, whether Pro-
testant or Catholic, are exactly the same to-day as they were prior to
1905. No change has been made in the Section of the School Act in so
far as minority rights are concerned, and it is the policy of the Govern-
ment to administer the law in this regard as it was fixed by the con-
stitution given us in 1905. In order that there may be no misunderstand-
ing on the question, I quote section 41 of Chapter 29 of the Ordinance
of the Northwest Territories of 1901, which is the main Section dealing
with the question, and reads as follows: '(41) The minority of the rate-
payers in any district, whether Protestant or Catholic, may establish a
Separate School therein; and in such case the ratepayers establishing
such Protestant or Roman Catholic Separate School shall be liable only
to assessments of such rates as they impose upon themselves in respect
thereof.'
He pointed out that in 1905 there were 894 School Districts
and 21 Separate Schools in the Province ; in 1921 there were
4,500 and 21, respectively. Mr. Martin's policy as to Municipal-
ities in difficulty or default was control of the indebtedness by
the Local Government Board, created in 1912, but no Govern-
ment responsibility for such Debts or for conditions preceding
the appointment of the Board. He explained this to the Toronto
Globe of July 6 during a visit to Ontario and added : "Only a few
places in Saskatchewan are in difficulties, due to over-spending
during- the boom days. Generally speaking, there is no reason
why anybody should hesitate to invest in Saskatchewan muni-
cipal securities if ordinary discretion is used." At this time Mr.
Martin had been returned to power with a good majority; on
Nov. 11, he presided at an important Conference in Regina be-
tween the members of the Provincial Government and repre-
sentatives of various commercial and farming interests of the
Province ; it had been called by the Premier and amongst the
organizations represented were the Retail Merchants, Mort-
gage and Loan Companies, Implement dealers, Grain Growers,
Stock Growers, Lumber dealers and Rural municipalities.
The Premier admitted that the financial situation was
serious with the farmers facing a short crop, low prices, bad
season and heavy expenses in the past year; but it was only a
matter of time for recovery and he was optimistic as to the
future ; the Province was not bankrupt, a Moratorium, as sug-
gested by some, was entirely unnecessary and the Government
was strongly opposed to it. The discussion was a full and useful
one and it enabled the Government to take measures for relief
in specific cases. On Sept. 30, Mr. Martin took part in a Lib-
THE MARTIN GOVERNMENT IN SASKATCHEWAN 779
eral nomination meeting at Regina during the Federal Elections
and gave his personal adhesion to Hon. W. R. Motherwell's
candidacy as a Liberal; on Dec. 1st he made a notable speech
at Regina, just before the Elections, in which he spoke strongly
for Mr. Motherwell and in opposition to certain policies of the
Grain Growers' Association and to their backing of Mr. Crerar
and the Progressives against both Liberal and Conservative
parties ; incidentally, he was alleged to have placed his Govern-
ment in antagonism to an organization which had hitherto re-
fused to promulgate a Provincial policy against his own Admin-
istration or to oppose it in any organized form.
After claiming that Conservative Governments always left
the country in a condition of depression, he dealt at length with
the Platform of the Progressives and declared that if it had
not been for a division in the forces of Liberalism, caused by
this new party, there would be no doubt about an overwhelming
triumph for the Liberal party and for Liberal principles in every
Province in Canada. Fundamentally, he added, there was little
difference between the policies of the two parties, but reforms
promised by the Liberals went more directly to the needs of the
nation. He criticized the Progressive Party policy in details.
The proposed Tax of one mill on the dollar on unimproved lands
would only produce $20,000,000 in all Canada and would greatly
interfere with Provincial and Municipal taxation; a graduated
Income Tax would be no better than the present one and the
proposed Inheritance tax would conflict with the Succession
duties of all Provinces ; as to labour, the Progressive Platform
contained no political suggestions, whereas the Liberal plat-
form favoured unemployment insurance, insurance against sick-
ness, old age and disability pensions.
He strongly opposed the Recall plank of the Farmers' Party:
"No sensible man who has a proper appreciation of his respon-
sibilities as a member of Parliament would agree to place his
resignation in the hands of any group of men to be used under
any condition during his term. It would create an undue inter-
ference with the independence of Parliament, and is uncon-
stitutional under our system of government." The Farmers and
the Liberals were agreed upon Tariff and Reciprocity issues
but not upon the matter of class policy and action ; he cited the
views of H. W. Wood and J. J. Morrison in this connection. In
Alberta "it is simply class, first and last," and in Ontario "the
movement is largely a class movement." He urged a combin-
ation of Farmers and Liberals to defeat the Meighen Govern-
ment. The speech caused a political sensation and several re-
sults followed.
The Government had been closely associated with the policy
of the Saskatchewan Grain Growers' Association. This power-
ful body had appointed, in 1920, a new National Policy Political
Committee with its object, in the main, Federal but with instruc-
tions to prepare a tentative Provincial platform and submit it
780 THE CANADIAN ANNUAL REVIEW
to the Locals; the Executive asked for suggestions along this
line and out of 1,170 letters despatched to Secretaries, only 135
replies were received, with 44 of these opposed to Provincial
political action ; the President of the Association, J: A. Maharg,
and the Secretary, J. B. Musselman, were in favour of active
Federal politics for the organization but of non-intervention
so far as the Provincial Government was concerned ; so, of course,
were Messrs. Dunning and Langley, two leaders in the organiza-
tion and members of the Martin Government.
At the 1921 Convention of the Association in Moose Jaw,
with 1,600 delegates present, on Feb. 2-4, this question was con-
spicuous with varied criticism of the action of Hon. W. E.
Knowles, of the Premier, and of one or two other Ministers, in
addressing Liberal meetings. The Hon. C. A. Dunning announc-
ed the Government policy as follows : "I believe the Premier is
taking the proper stand when he says that his Government and
its political organizations shall not be used for the advancement
of any Federal political party. But as an individual citizen of
Canada, I am not deprived of my right. As a Government, the
Saskatchewan Government does not support any party." A
Resolution was eventually presented and discussed at great
length which declared that "it is not in the best interests
of the Association that any definite step should be taken at
this time towards the creation of a Provincial Political Plat-
form, but that the matter be referred back to the Locals for
further consideration and disposition at the next annual Con-
vention." Amendments were proposed, the discussion was
heated at times, and J. A. Maharg, as Chairman, had difficulty
in controlling the debate but, eventually, the above motion was
declared carried; another Resolution moved by F. S. Wilbur
and stating, specifically, that the Association should at once
enter Provincial politics, was voted down by an overwhelming
majority. It may be added that the same organization vigor-
ously supported Mr. Crerar and his Federal party in the Decem-
ber elections but had refused, in September, to discuss a com-
bination with .the Liberals to defeat the Meighen Government.
Changes in the Provincial Government. Meanwhile the
Provincial situation was closely connected with current changes
in the personnel of the Government. The Hon. W. E. Knowles,
K.C., Minister of Telephones and Provincial Secretary, resigned
on Feb. 28 in order to take up his private business at Moose
Jaw ; later he was Liberal candidate in the Federal elections but
was defeated. Mr. Martin assumed charge of the Telephone
Department in addition to his current duties as Minister of Rail-
ways and of Education ; Hon. S. J. Latta, Minister of Highways,
took charge of the Provincial Secretary's Department. A couple
of weeks later Hon. W. F. A. Turgeon, K.C., Attorney-General
since 1907, retired to take a place on the Provincial Court of
Appeal (Mch. 14) and the Premier added this Department, tem-
porarily, to the others he was looking after.
THE MARTIN GOVERNMENT IN SASKATCHEWAN 78!
On Apr. 23 it was announced that John Archibald Maharg,
M.P. for Maple Creek since 1917 and, for 11 years, President of
the Grain Growers, had accepted a place in the Provincial Cab-
inet and would shortly resign his seat; at the same time Mr.
Maharg issued a letter to the Locals of his Association stating
that he would retain the Presidency until the next Convention
and that his object in accepting the new post was "the bettering
of the conditions of those who are trying to secure a competence
through following the pursuits of agriculture." Mr. Mussel-
man, Secretary of the S. G. G. A., in defending this action of the
President, stated that Mr. Maharg had not joined a Liberal
Government ; "Time and again it has been made clear that the
Government of this Province has no connection with the Liberal
party which is a Federal party." As a matter of fact, besides
Messrs. Langley and Dunning, who were Grain Grower leaders
as well, Messrs. C. M. Hamilton and S. J. Latta had been in-
fluential members of this organization before joining the Cab-
inet. On June 14 Mr. Hamilton became Minister of Highways
and Mr. Maharg assumed his post as Minister of Agriculture —
the Cabinet being re-organized, as follows, with Mr. Langley
and Mr. McNab alone retaining their old Departments :
Prime Minister; Minister of Telephones and Telegraphs; Min-
ister of Railways and Attorney- General Hon. William Melville Martin, K.C.
Minister of Public Works Hon. Archibald Peter McNab
Minister of Municipal Affairs and of Public Health Hon. George Langley
Provincial Secretary and Treasurer; Minister of Labour and
Industries Hon. Charles Avery Dunning
Minister of Education Hon. Samuel John Latta
Minister of Highways Hon. Charles McGill Hamilton
Minister of Agriculture Hon. John Archibald Maharg
Meantime, Mr. Maharg, who had temporarily held the De-
partment of Telephones, had been elected by acclamation in
Morse after his retirement from the Commons; in his first
speech after appointment, at Estevan on June 23, he stated that
Co-operation was the biggest thing in Saskatchewan to-day and
was the keynote struck at all Provincial gatherings. In Septem-
ber occurred the somewhat sensational retirement of Mr. Lang-
ley from the Government. A strong Liberal and a prominent
Grain Grower, a member of the Government since 1913, he was a
man of vigorous views and dominating temperament; the Pre-
mier, after the event in question, accused him of constantly in-
terfering with the administration of justice in the Province. The
incident which led to the trouble was a somewhat sordid and
unpleasant one involving, seriously, the moral character and
conduct of a Policeman called William Sulaty at Halford, in the
Minister's late constituency of Redberry.
On Sept. 30, the Premier wrote to Mr. Langley, enclosing
copy of a letter which the Minister had written on Sept. 23 to
Thomas Murray, a Special Provincial Magistrate who was con-
ducting an Enquiry at Prince Albert into the conduct of Sulaty.
In it Mr. Langley referred to the coming investigation and said :
"I want you to know how I regard it. You will find herewith
report from my confidential agent and his remarks are exactly
782 THE CANADIAN ANNUAL REVIEW
my own view." The remarks quoted with approval were as fol-
lows: "With regard to William Sulaty, the Provincial Police-
man, I want to impress upor. you that it would be advisable to
have this man right in Halford in spite of everything." The
Premier's comment upon the matter was explicit :
I can only say that any man who would deliberately go to Prince
Albert to see the magistrate, having charge of so important an investi-
gation, for the purpose of influencing the judgment of the magistrate
in favour of a member of the Police force charged with the serious
offences which are charged against Sulaty and, failing to see the mag-
istrate, would write the letter above referred to, has no sense of pub-
lic morality, has no sense of his responsibility to the people of the
Province, and has not a proper appreciation of the absolute necessity
of keeping the administration of justice clean. Since you have placed
yourself in this regrettable position, I have no alternative but to ask
you to let me have your resignation forthwith.
Mr. Langley at once wrote out his resignation and, on Oct.
4, followed it with a letter stating that he was leaving the Cab-
inet with "a gnawing sense of being treated with gross injustice"
and added : "Regarding my grave indiscretion, I make no excuse
except that I did it in the interest of a man who, I sincerely be-
lieved, was being ill-treated by his superior officers. When my
indiscretion became known you took a most extraordinary
course in mv absence, you decided to judge and pass sentence
upon me without giving me an opportunity of offering any de-
fence or explanation." The rest of the letter was of a mixed
personal and political nature with keenly expressed resentment
at the tone of the Premier's communication and the claim that
his own resignation should, in view of his long public services,
have been asked for in a different form and spirit.
The presentation of this correspondence to the Legislature
on Dec. 15 was followed by the publication of Mr. Langley's
statement (Dec. 16) in which he quoted from alleged personal
incidents in the Council Chamber to prove a point against the
Premier. To this Mr. Martin took grave exception and in the
Legislature, on the same day, said: "A meeting of the Cabinet
was called to permit Mr. Langley to state his case to the mem-
bers of the Government and he has seen fit, notwithstanding his
Oath of Office, to divulge what he alleges took place there." The
Premier pointed out that the Oath in question was explicit as to
this : "You will keep close and secret all such matters as shall
be treated, debated and resolved in the Executive Council, with-
out publishing or disclosing the same or any part thereof by
word, writing, or any otherwise, to any person out of the same
Council." As to the rest: "Before I dismissed Mr. Langley
from the Government of the Province I consulted with and
had the approval of every member with the exception of the
Minister of Education, who was absent. I had the consent and
approval of the then Minister of Agriculture, who has since re-
signed from the Government."
Then came the Federal elections and the controversy as to
the speech of Mr. Premier Martin at Regina. On Dec. 5th Mr.
THE MARTIN GOVERNMENT IN SASKATCHEWAN 783
Maharg announced his resignation and, on the 13th, his letter
of the 7th inst. to the Prime Minister, and the latter's reply,
were read to the Legislature. Mr. Maharg stated that he had
entered the Government on certain conditions: "The first was
that it should not in any way interfere with my work in the
Saskatchewan Grain Growers' Association. The second, was
that it should not in any way interfere with my activities in
connection with the new Progressive Political Party. The third
was that I should feel that I had more or less the sympathy of
the different members of your Government." He went on to
repeat an alleged interview with the Premier and to say that in
the Federal elections some members of the Government had
supported the Progressives and some the Liberals; to this he
took no exception, but he did object to the Premier actively
supporting a Liberal candidate and to the terms of his Regina
speech ; he seemed to believe that Mr. Martin had, in some way,
committed himself to a support of the Progressives.
Mr. Martin replied at length to this letter — in about three
columns of the Regina Leader of Dec. 13 — and his position, in a
nutshell, was that he had allowed absolute liberty to all the
members of the Cabinet as to their Federal politics, policy and
activities and claimed the same rights for himself; that the vital
plank of the Progressives was the Tariff, as it was in the Liberal
policy, and upon this point they were all agreed ; that his policy,
publicly and repeatedly stated, was non-Government interven-
tion in Federal politics; that Mr. Maharg's letter, carefully
analyzed, showed "no ground whatever for resigning unless you
are prepared to admit that you would not remain a member of
any Provincial Government unless that Government as a whole
supported the Federal political party with which you are in
sympathy." He absolutely denied having ever promised his
support or that of the Government, as a party, to the Progres-
sives ; deprecated, also, the manner of the resignation and the
contradictory statements as to its cause which had appeared in
the press. Mr. Hamilton resumed charge of the Department of
Agriculture and Mr. Dunning took over that of Municipal Af-
fairs. On Dec. 9th Mr. Maharg wrote a lengthy letter in reply
to the above from the Premier, and this, with a brief response
from Mr. Martin, was tabled in the Legislature on the 19th
with, however, nothing new in either of them.
Administration of the Departments. Mr. Premier Martin
had charge of the Railways during most of the year, and his
Report for Apr. 30, 1921, gave 1920 statistics showing 2,776 miles
of C. P. R. lines, 2,323 of C. N. R. and 1,168 of G. T. P. R. lines
in the Province ; particulars were given of railways and branch
lines guaranteed by the Province with details of mortgages and
other securities held ; there was little new construction either in
1920 or 1921 ; reports of the Moose Jaw Electric Railway gave
1920 profits of $20,478, the Regina Municipal Street Railway a
deficit of $47,006 and Saskatoon Street Railway a deficit of $50,-
784 THE CANADIAN ANNUAL REVIEW
836. Mr. Martin's Report as Minister of Telephones for Apr.
30, 1921, showed 23 new toll offices, 18 new exchanges and the
construction of 1,507 wire miles long-distance with extra string-
ing of 3,997 wire miles. At this date the Government System
had 155 toll offices, 6 exchange offices, and 277 toll and exchange ;
30.570 stations, 42,627 rural stations (connected), 5,842 long-
distance pole miles.
The Rural systems, apart from the Government one, in-
cluded 1,172 Companies, 53,702 pole miles; there were 42,627
subscribers on systems connected to Government exchanges and
15,638 on those connected to foreign exchanges. Other Systems
had 120 pole miles and 2,288 stations. The Deputy-Minister,
D. C. McNab, stated that the year's experience revealed a freer
use of the Telephone service : "Extension of the System, in-
ternally and externally, together with a growing appreciation
of the value and advantage of its use, adds yearly to the volume
of traffic handled. During the year just ended over 7,000 com-
pleted messages per day were handled over our long distance
lines. This is an increase in traffic of 1,000 messages per day
over the preceding year. With points in Manitoba 300 messages
per day were interchanged; with points in Alberta 52 messages
per- day." In the Rural lines 8,500 miles of poles were erected
and 10,000 additional subscribers obtained ; 58.265 farmers were
served, practically, the whole Province was covered and the
subscribers altogether totalled 91,000.
The Minister of Highways had an important work to do
and he did it; during most of 1921 the post was held by Hon.
S. J. Latta, who had been in charge for nearly 4 years. To the
Legislature, early in the year, Mr. Latta presented a very com-
plete report of conditions in this respect.* The preliminary
bases were (1) service to the greater number of people; (2)
suitable natural conditions; (3) choice of right type of road;
(4) plan and nature of construction and preservation of the
capital invested. The difficulties were very great in a Province
with less than two people to the square mile and the fact of
210,000 miles of roadway: "These roadways are laid out in a
checker-board system regardless of the topography of the coun-
try, through sloughs, through alkali, without any regard as to
whether the roadway will ever be suitable on which to con-
struct a road. Then there is the haphazard settlement of the
country and the scarcity of material." In the past year (1920)
up to Oct. 27, there were 777 contracts entered into with rural
municipalities embracing an expenditure of $415,000. Road
maintenance was described as the great problem of the future:
"We are doing much in an educative way through the road drag
competitions."
At the Halifax meeting of the Canadian Good Roads As-
sociation (May 12) Mr. Latta was elected President. For the
1921 season the programme of Highway construction, in which
*NOTE— Public Service Monthly, Regina, March, 1921.
o
< y
w 'u
< bfl
5 I
O O^
w c
K '
THE MARTIN GOVERNMENT IN SASKATCHEWAN 785
the Province would receive Federal aid (40 per cent, of cost)
was 918 miles, at an estimated cost of $995,000, the average per
mile of this work being $1,083. Other work in hand included
130 timber trestle bridges for construction, replacement or re-
pair, at a cost of $120,000; 8 large steel and 8 large concrete
bridges in hand to cost $188,500; in the work of constructing or
improving main marketting roads 700 contracts were enter-
ed into with rural municipalities, aggregating $345,000, and
250 pieces of work were in the hands of Government road gangs
at a cost of $200,000; the construction of 9 reservoirs were
authorized.
Toward the end of 1921 Hon. C. M. Hamilton was Minister
of Highways, and, on Dec. 19, stated in Regina that "of the
30,000 miles of road in Saskatchewan, we have selected some
7,000 miles as a Provincial highway system. How far or how
fast we go will depend on how much money we have. Last year
we had about 700 miles of this Provincial highway under con-
sideration"; as to maintenance of roads in general, the Govern-
ment had not determined its policy; it would maintain those
under Dominion and Provincial joint construction but, in other
cases, they were only assisting the Municipalities. At the close
of the year, H. S. Carpenter, Deputy-Minister, stated that, al-
together, in 1921, the Department had entered into 959 contracts
with rural municipalities, the expenditure being $538,000, and,
in addition, had carried on 476 separate pieces of road work cost-
ing $357,000; it also assisted rural road maintenance by grants
to each of the 300 rural municipalities — the amounts varying
according to area, but averaging $500. Under this head the
1921 expenditures were $145,000. For road construction on the
Provincial main road system under the Canada Highways Act,
the year's expenditure was $534,000, of which the Federal Gov-
ernment paid 40 per cent.
The Report of Hon. A. P. McNab as Minister of Public
Works for Apr. 30, 1921, covered an Expenditure of $3,932,089,
of which $2,724,521 was on Capital account. The Hospital for
the Insane at Battleford cost $461,153, or $1.41 per capita per
day; the Gaol at Regina $80,735, or $1.66 per prisoner per day;
that at Moossomin $13,605 and the Prince Albert institution $91,-
406, or $2.42 per head per day; the Boys' Detention Home, Re-
gina, cost $36,080 for maintenance. The Department received
a report from the Battleford Mental Hospital claiming that
Saskatchewan had the smallest percentage of insane in any
Canadian Province ; it dealt with 209 admissions, male, and 93
female, and 134 paroles during the year; in the Institutional or
Gaol farms considerable live-stock were raised and sold. On
Dec. 29 a new Mental Hospital was opened at Weyburn by Hon.
Mr. McNab, who stated that the building had cost $2,250,000
and that it was, perhaps, the best of its kind in Canada.
Statistics issued by Mr. McNab, in February, showed that
since 1905, there had been constructed by the Provincial Gov-
ernment, public buildings to the value of $4,971,623, and that at
26
786 THE CANADIAN ANNUAL REVIEW
this time other public buildings to the value of $2,104,073 were
under construction. The administration of estates by this De-
partment showed a total property value of $745,678 in 1921.
Of other Departments, that of the Provincial Secretary report-
ed for 1920-21 a total of $1,618,936, in Fees paid, of which $945,-
783 came from Motor licenses and $416,648 from Corporation
taxes : there were 307 Companies incorporated with a total cap-
ital of $95,140,880; 143 Theatres were reported in Provincial
operation. Mr. Langley, as Minister of Municipal Affairs during
most of the year, was, as usual, energetic in his work with a
share in various public matters. His annual Report for 1920-21
stated that:
The marked depression which set in toward the close of the year
1920 has adversely affected the financial standing of a considerable pro-
portion of Saskatchewan's municipalities. The diminished returns re-
ceived by the farmer and the business man from the season's operations
are reflected in a marked decrease in the percentage of tax collections
and a corresponding increase in bank and other indebtedness on the part
of many municipalities. Owing to the restriction of credit by the Banks,
it has been impossible for the Councils of some of these municipalities
to provide the required funds for the School Districts and Telephone
companies. In a number of cases it has been necessary for the Govern-
ment to make loans direct to the School Districts to ensure that the
schools would not be closed, x x x The reports received by the De-
partment show an increasing tendency on the part of ratepayers in the
different municipalities of the Province to allow their taxes to remain
unpaid until their lands are offered for sale under the Arrears of Taxes
Act.
During the fiscal year 15 new Municipalities were organized;
Seed grain distributions were large and the Government was
called upon to guarantee the repayment of Seed Grain Loans
carried over from the preceding year in 34 municipalities to a
total of $330,237; a total of 5,658,911 acres were assessed under
the Wild Lands Tax Act with a total assessed valuation of $75,-
010,484; Town planning schemes were reported as approved in
40 Rural municipalities, in 14 hamlets, in 52 villages, in 6 towns
and the City of Saskatoon. There were in the Province, on Apr.
30, 1921, seven cities with a total Assessment of $117,820,038,
and Debenture Debts of $27,615,010; 78 towns with an Assess-
ment of $54,564,370 and a Debenture Debt of $5,784,150; 341
villages with an Assessment of $49,235,038 and a Debenture Debt
of $506,427; 301 Rural municipalities with a total valuation of
$875,435,000 and a Debenture Debt of $1,084,161. The School
Districts numbered 4,439.
There was wide discussion, not limited to the Province,
during the year, as to the financial position of some municipali-
ties. Humbolt was in trouble through an unsuccessful water-
works system ; Swift Current, with an Assessment of $5,382,250
and a Debenture Debt of $1,159,827, failed to meet its obliga-
tions ; Estevan, Prince Albert, Battleford, Melville, Wilkie, Wat-
rous, Scott and Canora had all, in some form or other, defaulted
in payments. The Government did not refuse assistance, but it
THE MARTIN GOVERNMENT IN SASKATCHEWAN 787
did refuse to assume any form of responsibility for these de-
faults ; Eastern bond-holders urged action of some kind and did
not seem altogether satisfied with the Local Government Board,
of which G. A. Bell (Chairman), S. P. Grosch and J. N. Bayne
were Commissioners, and which was intended to supervise the
municipalities and control their issue of debentures, etc. Hon.
Mr. Langley, at Prince Albert, on June 16, told the Union of
Saskatchewan Municipalities that there was "an insidious boy-
cott of Saskatchewan securities" amongst bond dealers and in-
vestors. To this W. L. McKinnon, of the Canadian Bond Deal-
ers' Association, stated in Toronto, on June 22, that there was
nothing of the kind ; that "on the average, the financial position
of Saskatchewan municipalities is very sound ;" that it was, how-
ever, time for the Government to help the weak municipalities
and re-organize the municipal machinery.
The criticisms offered were that the Province had not prop-
erly limited the borrowing power of its municipalities ; that some
of them had been extravagant and, apparently, indifferent to
Interest obligations ; that suit against defaulting municipalities
for recovery of Interest had proved practically futile; that
money collected for Debenture purposes had been diverted to
other uses. The matter was widely discussed and the Montreal
Star (June 23), in a long editorial, urged attention to the subject
by all concerned in Provincial well-being. Mr. Langley replied,
vigorously, to these statements in the Leader of June 23rd, and
laid the blame for trouble, in most cases, upon the '"boom" days
of 1910-12 and its aftermath; eulogized the work of the Local
Government Board and its supervision of affairs; described the
charges as made by those who wanted to force the Government
to become responsible for unwise investments. Mr. McKinnon
replied that (June 24) "while the Local Government Board had,
since 1914, supervised capital expenditure of municipalities, and
had done much good work thereby, it had made no noticeable at-
tempt to control current expenditure."
At the Ottawa meeting of the Union of Canadian Municipali-
ties, J. N. Bayne of the Local Government Board, Regina, show-
ed that out of 730 municipalities in Saskatchewan less than 12
had defaulted on their Bond interest payment ; he did not agree
with those who said that the Provincial Government should
guarantee municipal bonds or pay them when the municipalities
defaulted. The few places involved had made honest efforts to
meet the situation; as to investors, by taking money at 3 per
cent, from the Banks to invest in 7 per cent, municipal deben-
tures, they clearly recognized some element of risk. The Report
of this Board for the year of Dec. 31, 1921, showed $3,810,971 of
Debentures sold with $2,431,161 of these purchased within the
Province; five towns had asked the Board to look into their
affairs and suggest a remedy — only 12 altogether were in
trouble ; as to new issues of Debentures, the Board had author-
ized $779,875 for all Municipalities, $1,576,173 for Schools and
788 THE CANADIAN ANNUAL REVIEW
$14,256 for Rural telephones, or a total of $3,270,305 and $2,500,-
000 less than in 1920.
At the Convention of the Rural Municipal Association, Re-
ina, on Mch. 11, these matters were discussed and J. J. Smith,
Deputy-Minister of Municipal Affairs, urged economy and re-
trenchment in municipal expenditure, enforcement of prompt
payment of taxes and the creation of a surplus in the municipal
treasury. Meanwhile, the Minister had been dealing with the
Freight rates question and on Apr. 23 he told the Railway Com-
mission at Regina, on behalf of the Saskatchewan Co-operative
Elevator Co. and its 22,000 shareholders, that the recent increase
was "excessive and indefensible" with a very injurious effect
on farming in the West; later on, Mr. Langley announced the
appointment (May 17) by Order-in-Council of a Commission
to investigate the incidence of Provincial taxation for Public
Revenue purposes as between the urban and rural municipalities,
the scale of valuation of lands for purposes of assessment and
the inequality in proportionate amounts raised.
The Equalization Commission, as it was called, consisted of
George Armstrong, Wild Lands Tax Commissioner, (Chair-
man) ; L. A. Thornton, Regina; O. J. Godfrey, Indian Head;
R. J. Moffet, Brodwell, and J. J. Lamb, Ogama, representing
the Rural Municipalities. Between July 6 and Aug. 19, the
Commission visited 17 different points in the Province, the Ses-
sions in most cases lasting 2 days, with a total of 202 witnesses
giving evidence ; in addition questionnaires as to statistics and
the opinions of Councils on the subject matter of the Enquiry
were sent out to the chief elected officials of Saskatchewan's
730 municipal institutions with, however, only 367 replies re-
ceived. The Manitoba and Alberta systems were studied and
the Commissioners finally reported (1) that the present Public
Revenues Tax did not insure a fair and equitable distribution
of taxation amongst the different classes of municipalities; (2)
that "if land values were taken as a basis, the system failed
because different systems of valuation were adopted and, if
ability to pay was the basis, it failed because the rural dweller
was paying on a larger proportion than the urban dweller"; (3)
that it also failed "on account of the large percentage of busi-
ness and individuals who paid none or a very small percentage
of the Tax"; (4) that " legislation should be enacted creating a
Tax Commission as a branch of the Department of Municipal
Affairs, consisting of a Chairman who shall devote his whole
time to the work of the Commission," with two other members
not so tied.
It was stated that such a Commission should (1) exercise
general supervision over the administration of the Assessment
laws of the Province ; (2) act as a Board of Equalization to
allot and adjust the contributions of the various municipalities
to the Public Revenues tax; (3) confer with and advise muni-
cipal officers as to duties and problems arising from Assessment
THE MARTIN GOVERNMENT IN SASKATCHEWAN
789
laws; (4) act as a Court of appeal from courts of revision and
study and investigate assessment and taxation in order to formu-
late and submit plans for Legislative enactments; (5) report
annually to the Legislature through the Minister and perform
such other duties in this respect as might be required. Various
suggestions were made to the Commission, with special value
attached to those of Prof. A. B. Clark of Winnipeg and Prof.
W. W. Swanson of Saskatoon. Definite proposals were sub-
mitted by the Commission and the estimated conditions and re-
sults may be summarized in the following table :
Division
as to
Public
Revenues
Rural Municipalities
Unorganized Districts
Cities
Towns
Villages
1920
1921
Pro-
Valuation
Lands
Appli-
cation
Proposed
Appli-
1920
Levy
posed
Levy
Buildings
of
cation
of
of
Businesses
Tax
of Tax
Tax
Tax
$953,000,000
86-2
78-0
$1,745,000
$1,589,000
33,800,000
1-5
2-7
30,800
57,500
134,000,000
8-4
10-9
169,400
221,000
54,500,000
2-7
4-5
54,000
90,800
47,700,000
1-2
3-9
25,000
79,500
$1,223,000,000
100
100
$2,024,200 $2,037,800
Financial affairs and the Reports of the Ministers of Agri-
culture and Education are dealt with separately; the Bureau of
Labour and Industries was an important Administrative body
which may be referred to here. Constituted in 1920 with very
distinct functions, its chief work was (1) the collection of in-
formation upon every subject touching Labour and Industry in
the Province ; (2) the study of Provincial natural resources and
their industrial possibilities and other related matters; (3) the
provision of facilities for finding employment and the distribu-
tion of male and female labour. Its first annual Report (Apr.
30, 1921) dealt in a general way with Provincial natural re-
sources and industrial capabilities and gave a description of the
Expedition which had explored the North Country under Lieut.-
Col. A. C. Garner; described existing industries, with the num-
ber of factories in the Province as increasing from 208 in 1919
to 322 in 1920, or 50 per cent, increase and giving employment to
3,587 persons in 1920; reported upon the Minimum Wage Board
and the subject of Accident prevention; reviewed the work of
the Employment Service with 80,522 applications for work and
73,701 placements.
Though not a Government organization, the Canadian Red
Cross work in Saskatchewan was increasingly important under
the guidance of W. F. Kerr, Provincial Commissioner. It had
the support and legislative co-operation of the Government and,
in 1921, its Relief work, Emergency Service, Red Cross Outposts,
Junior Red Cross organizations, Hospital work in isolated dis-
tricts, were a great help to the Health Department and the
people. In this general connection (Nov. 3rd) a large Deputa-
tion asked the Minister of Public Health to assume charge of
the establishment and administration of Union Hospitals
throughout the Province; 39 of these institutions were repre-
sented and the Municipalities were said to want relief from the
790 THE CANADIAN ANNUAL REVIEW
responsibility and worry of management. It may be added that
the Saskatchewan Medical Association, with Dr. R. L. King of
Prince Albert, as President, and the Provincial Pharmaceutical
Association with W. J. N. McMullen of Kerrobert presiding,
met at Prince Albert on July 7-8 and discussed these and other
subjects.
The Liquor question in Saskatchewan was not as trouble-
some as in some Provinces ; at the first of this year about 60
Export liquor warehouses existed in Saskatchewan without
either Dominion or Provincial license, though the Provincial
Government levied a special tax of $1,000 upon each. With the
coming into force on Feb. 1st of the Canada Temperance Act,
importation was prohibited except for medicinal, sacramental
and mechanical uses, under the terms of the Saskatchewan Tem-
perance Act; and this prevented such warehouses from getting
further supplies — though not from exporting what they had in
hand. The Temperance Act was administered by a Commission
of which R. E. A. Leech was Chairman and, during its first few
weeks of operation, into February, 1921, it greatly reduced the
sale of liquor by drug stores ; in April the Commission reported,
with some alarm, that 7 doctors in the Province had averaged
over 100 prescriptions per month and 31 between 40 and 100
per month. It evidently had not made comparisons with other
Provinces ! On Sept. 29 a fine of $2,000 and costs was imposed
on the Saskatoon Brewing Co. for selling "real beer" in viola-
tion of the Act ; on Nov. 3rd Rev. J. N. MacLean, Chief Inspector
of Liquor Law Enforcement, announced that, as the result of a
conference between members of the Liquor Commission and
other Provincial and United States delegates, on Prohibition
enforcement, prosecutions would be launched immediately
against branches of Saskatchewan liquor firms operating in other
..points of the Dominion.
Incidents of the year included the appointment, in October,
of a Tuberculosis Commission composed of A. B. Cook, Sheriff
of Regina, G. R. Ferguson, M.D., Superintendent of the Provincial
Sanatorium at Fort Qu'Appelle, and J. F. Cairns of Saskatoon,
with full powers of enquiry and suggestion as to public health
in this connection ; the opening of a Home for the Infirm at
Wolseley, progress with a Normal School building at Saskatoon
to cost $450,000, and construction of a Provincial gaol at Prince
Albert costing $500,000; the election of Murdo Cameron, M.L.A.,
as President of the Saskatchewan Rural Municipality Associa-
tion ; the Report of F. J. Reynolds, Superintendent of Neglected
Children for Saskatchewan, with charge of Mothers' Pensions,
that the total pay-roll for the 12 months ending Oct. 1, 1921, was
$135,415 with 498 widows and dependent mothers receiving
benefits ; the statement by A. E. Fisher, Provincial Superintend-
ent of Insurance, that the Hail storms of the autumn of 1921,
which wiped out large areas of Saskatchewan's wheat crop, had
made this year the most disastrous period in the history of Hail
THE MARTIN GOVERNMENT IN SASKATCHEWAN 791
insurance companies in Western Canada — with a total amount
paid to the Companies by farmers of $4,392,574 and money paid
back by the Insurance companies for Hail damage of $6,500,000;
the appointment of J. C. Martin as Police Magistrate of Wey-
burn, of John Anderson as acting Deputy-Minister of Municipal
Affairs, of Rev. John L. Nicol, Saskatoon, as Director of Tem-
perance and Social Service, of William A. Begg as Director of
Town Planning for the Province, of James A. Regan, Regina,
as member of the Minimum Wage Board.
Financial Conditions of the Province. The Hon. C. A.
Dunning, Provincial Treasurer, did not deliver a Budget speech
during the calendar year of 1921 ; he had done so on Dec. 6, 1920.*
The Public Accounts, however, for the fiscal year of Apr. 30,
1921, showed total Receipts (including Loans) of $29,805,784,
with a credit balance of $1,908,432 carried over from 1920; Ex-
penditures of $30,243,361 with a deficit of $437,577 and a Balance
carried forward of $1,470,855. The chief items in the Receipts
were Dominion Subsidy, etc., $3,088,646; proceeds of Wild
Lands, Public Revenues and Supplementary Revenue taxation
$3,019,573 ; Succession Duties $324,403, Land Titles' Fees $799,-
880 and Law Stamps $153,276; Motor Vehicles' license fees
$945783 with Corporation and Railway taxes $523,598; High-
ways $310,164 and Agriculture $180,064; Proceeds of Loans $11,-
724,658. The chief Expenditures were on Interest, Sinking
Funds and Exchange $1,955,939; Civil government and legisla-
tion $750,765; Administration of Justice $1,305,149; Public
Works (Income) $1,186,228 and (Capital) $2,724,521; Public
Improvements (Income) $1,092,780 and (Capital) $595,992; Edu-
cation $2,378,935 and Agriculture $800,270 ; Public Health $459,-
873 and Neglected Children $187,598; Administration of Farm
Loans Act $278,967; Miscellaneaus Capital expenditures $3,157,-
542 and Capital expenditure on Telephones $2,000,000 ; Re-pay-
ment of Loans $7,088,349; Land Titles Assurance Trust Fund
and Supplementary Revenue Fund $702,478.
Taking the ordinary revenue, apart from capital account or
loans, the total was $11,789,919, compared with $9,903,885 in
1919-20; similarly the expenditures were $12,088,330 and $8,-
736,667 respectively. The Liabilities of the Province on Apr.
30, 1921, were $45,928,261 including Debentures of $38,041,922,
Farm Loans of $5,535,266 and Treasury Bills $1,450,000. The
Assets were estimated at $83,353,138, of which $35,142,220 was
stated as owing by the Dominion Government, $13,511,004 as the
value of Public Buildings and Lands ; $8,096,406 as the cost of
Public Improvements; $11,151,975 as the cost of Telephones;
$3,045,243 invested in the Saskatchewan Co-operative Elevator
Co., Ltd. ; $7,236,933 advanced under the Farm Loans Act. There
were 2,344,000 acres of unsold School Lands (surveyed), speci-
fied as held in Trust by the Dominion and estimated as worth
$40,000,000 — in addition to the above.
*NOTE.— See The Canadian Annual Review for 1920.
792 THE CANADIAN ANNUAL REVIEW
A matter which caused the Provincial Treasurer concern,
in the first part of the year was the continued default in pay-
ments of Interest on Grand Trunk Pacific branch line bonds
guaranteed by the Government of Saskatchewan ; the Railway
Company was unable to meet the payments of May, 1919, No-
vember, 1919, May, 1920, November, 1920, and May, 1921 ; the
Dominion Government refused to do so in view of its uncertain
status in control of the Railway — though it did meet one pay-
ment in November, 1920; the Saskatchewan Government had
met the others as they fell due, after vigorous protests, to a
total of $862,252. Mr. Dunning claimed (Apr. 20, 1921) that the
Dominion Government had admitted its responsibility for these
payments and that if it continued "a fast and loose policy" Sas-
katchewan would have to foreclose, in due course, under terms
of its Mortgages and take possession of the Lines. During 1921
the Treasurer sold three Bond issues— each for $3,000,000. The
first two were at 6 per cent., 15 years, and the last one, in No-
vember, was at 5% per cent, for 25 years ; they commanded a
fairly high price. The gross Debt of the Province on Dec. 31,
1921", was $50,124,995; deducting Sinking funds of $1,330,085 and
investments carrying themselves, the Net Debt was $23,765,303.
Meanwhile, the Saskatchewan Farm Loans Board — Colin
Fraser (Chairman), J. H. Grayson and J. O. Hettle — had been
handling an important financial development. It was started
in 1917, the plan being to borrow, through the sale of 5 per cent.
Debentures to farmers and then to use the funds for re-loaning
to other farmers at 6y2 per cent. ; funds were to be lent on the
amortization plan and operations were placed under control of
the above Board. In the year ending Dec. 31, 1920, it received
2,885 new applications for Loans totalling $8,506,913 and granted
992 Loans of $2,372,222; the total advances, at this date, were
$5,993,008 and collections during the year had been unsatisfac-
tory. In 1921 the applications received were 1,644 for a total of
$3,984.508 and 662 Loans were completed for $2,099,586— mak-
nig the total advances $8,000,000 to Dec. 31, 1921. During 1919-
20-21 the Board wrote oft $18,000 as uncollectible and advanced
$25,784 worth of Seed grain to its borrowers. The following
table shows the percentage collected, each year, of the total
Interest due, and inclusive of arrears from preceding years:
Year ending —
Dec. 31, 1918 — paid 80 per cent, of accrued and payable Interest.
Dec. 31, 1919— paid 58 pet cent, of accrued and payable Interest.
Dec. 31, 1920 — paid 46 per cent, of accrued and payable Interest.
Dec. 31, 1921 — paid 37 per cent, of accrued and payable Interest.
Mr. Dunning was not favourable to any extension of this
system to Rural Credits Societies along the lines adopted in
Manitoba and Ontario, and to the Grain Growers' Convention of
Feb. 2nd he gave his reasons clearly. The Government effort to
sell Farm Loan Debentures to farmers, in order to obtain money
to lend to others, had not been a success ; advertising campaigns
THE MARTIN GOVERNMENT IN SASKATCHEWAN 793
had produced 4 applications for loans to one purchase of a bond
and only $600,000 had been obtained altogether. The Farm
Loans Board, on Jan. 1st, 1921, had $300,000 in Interest over-due
and unpaid. As to any Rural Credit scheme in this Province the
Minister pointed out that such a venture would have to depend
upon Deposits for its chief source of revenue ; in Saskatchewan
75 per cent, of the population was engaged in one industry —
farming. That was a seasonable occupation and indicated that
all of the borrowers would need accommodation at the same
time; Deposits would only be available in bulk at the period
when they would be least needed.
The 1921 Meeting of the Legislature. The 1st Session of
the 5th Legislature met at the close of the year and a few
months after a general election ; its business, so far as 1921 was
concerned, was, necessarily, inconclusive and, according to es-
sential rule in this work, the results cannot be anticipated. It
was opened on Dec. 8 by the Hon. H. W. Newlands, Lieut.-Gov-
ernor, with the usual Speech from the Throne — after Hon.
George A. Scott, member for Ann River, had been re-elected
Speaker — and His Honour extended greetings to H. E. the Lord
Byng of Vimy, upon appointment as Governor-General, and
then expressed regret at certain harvest conditions and the
serious reduction in prices ; mentioned the appointment and Re-
port of the Equalization Tax Commission and the similar ap-
pointment and Report of the Grain Marketting Commission;
referred to the Freight rates discussion and recent reduction
and the appointment of a Tuberculosis Commission. The Ad-
dress was moved by P. L. Hyde of Maple Creek and E. R.
Ketcheson of Hanley, and passed, after debate, on Dec. 16, with-
out division. The House stood at 60 members, with 44 support-
ing the Government and 16 the Opposition ; the latter were, in
the main, elected as Independents while the Progressives soon
showed that they were standing with the Government and two
doubtful members — W. G. Baker (Lab.) and D. J. Sykes — took
seats on the Government side.
There was no Opposition leader, as Donald Maclean, K.C.,
Conservative leader in the preceding House, had been appointed
to the Bench; Harris Turner, the blind veteran and member for
Saskatoon, opened the fight on the Address, supported by D. H.
MacDonald of South Qu'Appelle — an old-time N. W. T. member.
The latter's speech was notable for his claim that when the
Subsidy increase from the Dominion was agreed upon in lieu
of the Natural resources, it was said by the then Government
to be sufficient to avoid the need of ever imposing direct taxa-
tion in the Province. Yet only a few years later such imposts
had been found necessary with, to date, total levies of over $12,-
000,000. During this debate, on Dec. 13, Mr. Premier Martin
spoke at length ; after dealing with freight rates and the Tuber-
culosis question, he referred to the problem of marketting, as
to which the jurisdiction of the House was limited and Pro-
vincial legislation, touching trade and commerce, impossible.
794 THE CANADIAN ANNUAL REVIEW
He criticized Mr. Maharg as resigning his portfolio "be-
cause he could not force me and the whole of the Government
into a position where we were to be a cog in the machine of a
Federal political party." The Hon. Mr. Latta spoke on the 15th,
and stated that in the Federal elections he had supported Mr.
Motherwell (Lib.) in Regina and the Progressive candidate in
another constituency; the policies were so nearly alike he felt
at liberty to follow personal feeling. Many other speeches were
made and much was said along this line with expressions of
regret that Mr. Maharg had seen fit to retire. The latter spoke
on the 16th, and declared that he had resigned because he was
convinced that the Premier was not friendly to the Progressive
organization and the Council of Agriculture.
During the debate the Opposition members attacked the
Government from various individual angles but without organ-
ized effort, with Mr. Dunning as the target of considerable
criticism by those who hoped to turn the Grain Growers against
the Government. He was singled out because of his earlier
prominence in management of the Co-operative interests of the
Farmers and his present position of leadership amongst them.
On the last day of the discussion he made a vigorous and able
counter-attack. His conclusion was explicit: "So far as I am
concerned, if the people of Saskatchewan decide to judge a man
in the public life of this Province on the basis of the attitude he
may hold toward Federal questions ; if they desire to ignore any
services he may have rendered in connection with Provincial
matters of public importance ; if they are to be influenced by the
propaganda being carried on against me, in particular, at the
present time along this line, I am content to take their verdict."
A number of Bills were introduced, a few were passed, but none
received the Royal Assent, before adjournment on Dec. 16th.
The croD conditions of Saskatchewan in 1921
Saskatche- were of the best until July, when a two-weeks' hot
lure lif ri9Zl an(^ ^ Spe11 workec* much mischief; troubles there
and Work of were> also, from hail, black and red rust and grass-
the Depart- hoppers, with Weeds as the greatest evil ; the actual
ment; Edu- production, despite these difficulties, was away
cational ahead of any year since 1915. The average wheat
of°theYear yield for 19~21 was 148 bushels Per acre> as com-
pared with 112 in 1920, and for oats 327, as com-
pared with 27-7. All grains showed an increased
average yield except rye, which decreased from 147 to 12-3.
Acreage under wheat showed an increase of approximately 3,-
500,000 acres, the total being 13,556,000. A remarkable decrease
in flaxseed acreage from 1,140,000 acres to 426,000 acres was
counterbalanced by a still further increased acreage seeded to
rye, which jumped from 172,000 acres in 1920 to 1,208,000 acres
in 1921.
The Province maintained its place of productive supremacy
in wheat during the year over the 12 leading States of the
SASKATCHEWAN AGRICULTURE AND EDUCATION IN 1921 795
American Union ; its winter and spring wheat product in 1921
was two-thirds of the total Canadian crop and one-quarter that
of the whole United States product ; the Provincial figures, which
always varied from the Federal statistics, gave a total valuation
for all grain and field crops of $225,697,573, compared with the
Federal estimate of $215,000,000. Other farm products of the
year, and including Butter, Cheese, Furs, Wool, Poultry, etc.,
were valued at $32,914,436 and the Provincial valuation of all
Live-stock in 1921 was $186,326,264, or a total Farm production
of $444,937,773 for a population of 757,510 (1921 Census) of
whom 75 per cent, were farmers.
The production of Wheat (Provincial figures) was 201,347,-
483 bushels valued at $151,010,612; Oats 185,966,000 bushels
worth $37,193,200; Barley 12,908,736 bushels worth $6,454,368;
Flax 3,118,946 bushels worth $4,927,934; Rye 14,861,279 bushels
valued at $11,145,959; Potatoes 10,344,000 bushels worth $5,-
177,000; Fodder Corn 258,700 tons worth $2,198,950; Hay and
Clover 445,800 tons valued at $5,215,250. The total reduction in
values was not as great in proportion as in some other Prov-
inces ; taken separately, the reduction from 1920 was $24,300,000
in Wheat ; $20,000,000 in Oats ; $5,400,000 in Flaxseed ; $3,400,-
000 in Potatoes; $2,100,000 in Turnips. There was an increase
of $8,000,000 in Rye and $2,000,000 in Hay. In Live-stock, also,
Saskatchewan had an all-round increase in numbers and a com-
paratively small decrease in values — though the total, in itself,
was considerable. Horses in 1921 (Federal figures) numbered
1,169,278, or an increase of 200,000; Cattle 1,563,332 with a
200,000 increase ; Sheep and Swine totalled 620,797 or 140,000 of
an increase. In values Horses totalled $95,463,000, Cattle $52,-
239,000, Sheep and Swine $7,163,000; the loss in values was $16,-
000,000 for Horses and $17,000,000 for Cattle. Taking all Agri-
cultural productions, the Income figures (Federal) over a 4-
year period, showing also the deflation in values, were as follows :
Saskatchewan
Field Crops
1918
$299,362,000
24,033,000
1919
$340,030,000
22,946,000
1920
$271,213,000
15,076,000
1921
$215,635,000
12,229,000
Wool
Dairy Products
Fruits and Vegetables
546,000
6,051,000
1,400,000
472,000
9,346,000
1,400,000
238,000
13,516,000
1,400,000
135,000
13,516,000
1,400,000
Poultry and Eggs
7,840,000
7,840,000
8,820,000
10,780,000
Fur Farming
78,000
27,000
Totals $339,232,000 $382,034,000 $310,341,000 $253,722,000
The total value (Provincial statistics) of farm products
exported from Saskatchewan in the calendar year 1921 was
$173,461,060, compared with $251,974,528 in 1920. An important
matter in Provincial development was Immigration, and the
total arrivals in the fiscal year 1920-21, as given in the valuable
annual Report of Edward Oliver, Provincial Secretary of Statis-
tics, were 7,335 as against 14,287 in 1919-20 and comparing with
an average of 42,000 in the three last pre-war years; Home-
stead entries in 1921 were 2,729 compared with 1,726 in 1920 and
14,524 in 1913. The year, as a whole, had been a most trying one
and the Department of Agriculture had varied difficulties to
796 THE CANADIAN ANNUAL REVIEW
handle. It started with Hon. C. M. Hamilton as Minister and,
after the interval of some months under Mr. Maharg, conclud-
ed with the same Minister in charge. F. H. Auld was Deputy
Minister and on Apr. 12 spoke at a Saskatoon Conference as
to this Department's work, at some length, and summarized,
especially, the activities of the seven main Branches — Live-
stock, Field Crops, Dairy, Statistics, Co-operation and Markets,
Secretary's work, Motion Picture Bureau of Publicity — and the
outside work of the College of Agriculture.
The Co-operative idea continued to dominate the policy of
the Department and it certainly had proved successful in Dairy
production, in Live-stock growth, in the development of So-
cieties, and in the treatment of the grasshopper plague. The
number of shareholders in Co-operative organizations at the
beginning of 1921 totalled 18,894; the paid-up capital invested
had increased from $362.251 to $466,009; 54 Associations mar-
ketting Live-stock shipped 912 cars of which the receipts
amounted to $1,429,309; the total value of supplies, sold, were
$5,885,385 and the aggregate turnover of the Associations, in-
cluding Live-stock, increased from $6,189,591 to $7,314,695. The
work of the Saskatchewan Co-operative Creameries, Ltd., was
very valuable in this connection and its Report for 1920 showed
the operation of cold storage plants at Regina, Saskatoon, Von-
da, North Battleford, and Melfort, with new plants also under
construction at Melville, Weyburn and Yorkton and the stor-
age warehouses full to capacity during the greater part of the
year.
There were 48 Creameries in operation in the Province
with 23 of the plants controlled by the Company. Aid given to
Agriculture had increased steadily with $330,000 as the 1917-18
total and $473,500 as that of 1920-21. Conditions were calculat-
ed to develop such results as were shown at the International
Soil Products Exposition and Live Stock Show at Chicago — the
largest of the kind on the Continent — when in 1921 Saskatche-
wan exhibits captured 36 Championships and prizes. Mr. Ma-
harg, on June 23, at Estevan, referred to this: "Eight times in
the past 9 years Saskatchewan farmers have won the World's
Prize for the best wheat." The chief honours in this respect
were won by James Cobden Mitchell, of the Excelsior Farm,
Dahinda, who, in December, 1920, won the World's Prize and
sweepstakes for the best spring wheat at the Soil Products
Exposition at Chicago, repeating his victory of 1919, when he
had also won the World's Sweepstakes at the same place. Mr.
Mitchell was an Englishman of a family prominent in the pub-
lic life of Manchester and Mossley; these successes came from
a first effort in International competition and he used Marquis
Wheat — one of his exhibits scoring 98 5-8 points out of a pos-
sible 100. In December, 1921, he' lost a 3rd championship by a
very narrow margin; T. S. McGrath of Birch Hills, however,
won the Championship in Butter for Canada and the United
States.
SASKATCHEWAN AGRICULTURE AND EDUCATION IN 1921 797
There was much trouble, again, during this year with
grasshoppers, which cut into various new areas during June
and caused considerable damage ; M. P. Tullis of the Department
of Agriculture, was in charge of the fight with enormous quan-
tities of poison and other necessaries available ; altogether the
Department bought and distributed during the period of dan-
ger, 3,024 tons of Bran, 100 carloads of sawdust, 361,233 pounds
of arsenic, 10,100 pounds of paris green; 92,360 gallons of molas-
ses ; 895 barrels of salt, and 998 gallons of amyl-acetate ; dozens
of men from the Department were engaged in fighting the pest
wherever needed and more were sent as required ; railways and
municipalities co-operated, as well as individuals, and the use
of the amyl-acetate, in place of lemons, facilitated the handling
of supplies to an appreciable extent with two gallons of the
former taking the place of five crates of lemons.
An important incident of the year was the Conference at
Saskatchewan University, on Apr. 12-14, between Federal and
Provincial Agricultural officials, representatives of Farmers'
organizations, Banking interests, Implement manufacturers,
Women workers and Railways. It was called by Hon. C. M.
Hamilton, Minister of Agriculture, and the leading agricultural
men of Saskatchewan, attended, with Hon. W. R. Motherwell,
formerly Minister of Agriculture, presiding. The speakers
covered a great variety of subjects with a fund of expert know-
ledge expressed as to many and varied sides of Agricultural
development. Mr. Hamilton, in closing the Conference, declar-
ed that sooner or later the difficulties of soil blowing, short
crops, better live-stock and so forth would be solved with re-
sultant prosperity to the population of Saskatchewan as a whole.
Amongst other subjects discussed were Crop improvement work,
soil survey, horticultural development, protection of crops from
diseases, insects, noxious animals and noxious plants, agricul-
tural extension methods, and the work of various organizations.
Other incidents of the year included the successful trip of
the C. P. R. Inter-Provincial train of six cars which toured
Saskatchewan in February for the purpose of instruction in
Weed control or destruction; the statement of A. E. Fisher,
Superintendent of Insurance, that Hail losses of the year ran
from 18 to 25 millions with a revision of rates necessary and
new Companies coming into the field; the Convention of Live-
stock men at Moose Jaw (Jan. 25) with Swanton Haggerty of
Belle Plain elected President; a Saskatchewan Better Farming
train composed of 13 lecture and demonstration cars and includ-
ing live-stock, field husbandry, household service, farm machin-
ery, poultry and a boys and" girls' section, in charge of F. H.
Auld, Deputy Minister of Agriculture, which was run in June
over the C. N. R. lines in Central Saskatchewan.
On June 8 there was announced the sale of the Swift Cur-
rent Mennonite reserve, containing 107,000 acres of the best ag-
ricultural lands in Saskatchewan, to Florida capitalists headed
by James J. Logan, Jacksonville, for a total of $4,800,000 with
the first cash payment deposited by the purchasers. There was
798 THE CANADIAN ANNUAL REVIEW
a contract under which the vendors were to leave their farms,
with personal belonging's only, and all chattels, farm machinery,
houses, churches, schools, etc., to become the property of the
purchasers — including 400 complete sets of buildings ; 50,000
acres in crop; 80,000 acres under cultivation. Litigation, how-
ever developed. A section of the Mennonites believed that an
attempt was under way to improperly wrest from them the title
to their lands ; action was started at Swift Current by solicitors
for the Mennonites and an injunction obtained in Court restrain-
ing the Saskatchewan Mortgage and Trust Co., which held the
documents in trust, from completing the transfer. The injunc-
tion was continued on June 16 and the case came up for trial
in October before Mr. Justice H. Y. Macdonald at Regina. The
issue was not determined at the close of the year and, mean-
while, the proposed exodus of Mennonites was held up.
Other matters included the violent hailstorm in Southern
Saskatchewan on June 28 which did severe damage to the crops ;
the heavy rains which, on Sept. 9-10, suspended harvesting and
threshing operations all over Saskatchewan, with wintry weath-
er and snow in several areas ; the sale in August of a farm of
1,120 acres, in the Gull Lake district, for the sum of $84,000;
the official statement on Aug. 24 that up to date 23,951 Harvest
hands had been imported into the Province with 19,151 of these
from Eastern Canada and 5,800 from British Columbia ; the Bet-
ter Farming Conference held at Estevan on June 22-23, and
representative of the Agricultural interests of South-eastern
Saskatchewan.
The Wheat Marketting and Better Farming Commissions.
On Mch. 19, 1921, Mr. Premier Martin addressed a letter to
James Stewart of Winnipeg, late Chairman of the Canadian
Wheat Board, and F. W. Riddell, Regina, General Manager of
the Co-operative Elevator Co., Ltd., describing certain ques-
tions upon which the Government desired information and to
which the first was the key : "Is it possible for any kind of pool
comprising less than the whole of the Western wheat crop to
market the crop to the same advantage from the producers'
point of view as a system of national marketting of the whole
crop by a Canadian Wheat Board?" The other questions turned
upon this and the 6th one, which asked: "Would it be wise,
from the producers' point of view, to embark on a full-scale sys-
tem of long-term contract pooling at once or to conduct instead
one or more large-scale experiments of a voluntary character?"
Mr. Martin requested a Report upon this subject, generally, of
(1) an educational character for the public and (2) to show
if the Provincial Government could properly help in the market-
ting of grain.
The Report was made public in May and began with a Re-
view of the existing marketting system for wheat in the West,
and the place of the Canada Grain Act, the Winnipeg Grain Ex-
change and Country and Terminal Elevators in the system ;
prices and the position of the Farmer, the problems of Financing,
SASKATCHEWAN AGRICULTURE AND EDUCATION IN 1921 799
Markets, Transportation, Selling and Freights were discussed ;
five forms of Pools were described and the difference between
contract and voluntary systems. The advantages of a Pooling
system were stated to be (1) a more even spread of the crop
movement over the whole crop year with avoidance of gluts of
grain and consequent depression in prices; (2) a stabilizing of
prices to the consumer as well as to the producer; (3) the avoid-
ance of fluctuations in price through spreading delivery of the
Wheat crop more evenly over an entire 12 months instead of
crowding it into a three months' perioid.
The Commissioners were not prepared to recommend pro-
ducers entering into long-term pooling contracts ; they em-
phasized the need of careful management in any system chosen
with experience in the grain trade and close knowledge of crop
conditions ; they did not think the financial difficulty of estab-
lishing a long-term contract pool insurmountable but "occasions
would arise, when, in the opinion of the management of the
Pool, it would be advisable to withhold from the market con-
siderable quantities of wheat, in whch event a large amount of
money would be involved, necessitating special financial ar-
rangements" ; the success of the scheme would then depend upon
the Banks, as curtailment might mean the difference between
success and failure; they considered the safe procedure, if it
were decided to adopt a pooling system, to be "an experiment
of a voluntary character in preference to embarking on a full
scale system of long-term contracts." Taking the issue as a
whole, the Commissioners were not very favourable — the best
form of a centralized wheat marketting agency would be a
National organization. They did make the following guarded
suggestion :
If a sufficiently widespread demand on the part of the farmers of
the Province for voluntary pooling on a large scale existed, and pro-
viding the Government was desirous of acceding to that demand, the
form of organization which we would suggest for such experiment would
be one specially created for the purpose and so constituted and con-
ducted that it would be directly responsible to the farmers patronizing
it.
The Royal Commission of Enquiry into Farming Conditions
appointed by the Martin Government as the result of Resolu-
tions by the Better Farming Conference of July 6-8, 1920, re-
ported to the Government early in 1921. The Commissioners
were Dean W. J. Rutherford of the College of Agriculture,
(Chairman) ; President John Bracken, of the Manitoba College
of Agriculture ; H. O. Powell, Manager of the Weyburn Security
Bank; Neil McTaggart, farmer, of Gulf Lake; George Spence,
M.L.A. for Notuken ; F. H. Auld, Deputy Minister of Agriculture,
Secretary. The Report opened with a history of the early de-
velopment of south-western Saskatchewan and the reasons for
the investigation ; the fact that development of grain-growing in
this portion of the Province was not much expected or encour-
aged and that, 15 years ago, this area was generally believed to
800 THE CANADIAN ANNUAL REVIEW
be useful only for stock-raising; the flocking in of settlers and
increase of population from 17,692 in 1901 to 178,200 in 1916.
The system, advised by the Commission, for South-western
Saskatchewan was one of farming of a diversified character
with practical suggestions as to fodder and feed crops, pasture
crops, permanent pastures, fallow or fallow substitutes, grain
crops, the soil and garden and a policy summarized in one par-
agraph as : "The only safe plan is to farm for a dry year and
hope for a wet one." General recommendations were (1) that
settlers in the southwest portion of the Province who wished
to leave present locations should be given the opportunity to
transfer their holdings to the Crown and enter for a homestead
north of the main line of the C. N .R. from Kamsack to Lloyd-
minster ; (2) that a soil survey of the Province should be made,
beginning with the Southwest district and the establishment
of sub-stations of the College of Agriculture, beginning in the
same area, and to be located with due reference to climatic and
soil conditions at convenient centres; (3) co-operative experi-
ments with farmers and appointment of a staff of Agricultural
representatives trained in the science and practice of agriculture
— one for every four rural municipalities.
Associated with these general conditions were the Census
returns of 1921 showing an increase of population in the de-
cade from 492,432 to 757,510; the 1920 Vital Statistics, showing
22,730 births registered, 5,328 marriages and 6,633 deaths — the
average number of children to a family being a fraction over
3 ; the Provincial Bureau of Labour report as to the coal re-
sources of the Saskatchewan Valley with its 7,218 square miles
estimated to contain 33,908,700 tons ; the Mineral production of
the Province in 1921, stated at 1,086,610, or a decrease in the
year of $750,858; the issue, on Oct. 15, of Minimum Wage Board
Orders as to (1) Shops and Stores, (2) Laundries and Factories,
(3) Mail Order Houses and (4) Hotels and Restaurants; the
statement by the Dominion Water-Powers Branch that there
was 1,312,000 horse-power in Northern Saskatchewan; the send-
ing by Hon. Mr. Dunning, under the Labour and Industries De-
partment, of an Exploration party into Northern Saskatchewan
commanded by Lieut. -Col. A. C. Garner, D.S.O. The Report finally
submitted showed a wide variety of clays and shales, limestone,
granite and sandstone for building purposes, small amounts
of garnet sand, glass sand, builders' sand, large tracts of bog-
iron ore, numerous deposits of yellow ochre and other paint ma-
terials, and several springs of Mineral water, fish and fur-bear-
ing animals were plentiful.
Educational Conditions in Saskatchewan. The latest avail-
able Report as to Education included the figures of 1920 sub-
mitted to the Legislature by Hon. W. M. Martin, Minister, un-
der date of Mch. 1st, 1921. In this statement A. H. Ball, Deputy
Minister, first dealt with the recent increase in grants for El-
tmentary education and then stated the number of School dis-
tricts on January 1st, 1920, as 4,286 and on Dec. 31, 4,399; con-
SASKATCHEWAN AGRICULTURE AND EDUCATION IN 1921 801
solidation of Schools was effected in a large number of places
and the expenditure on School sites and buildings was reported
as $2,099,350 and for Teachers' salaries $5,940,868— an increase
in the latter case of $1,127,868; the total expenditure for all Ed-
ucational purposes was $14,207,637 compared with $11,433,258
in 1919; the number of free Readers distributed in the year
totalled 131,215.
The number of certificates issued in 1920 was 2,843, as com-
pared with 3,286 in 1919, or a decrease of 443 and the number
of provisionally certificated teachers in 1920 was 755 as compared
with 539 in 1919, or an increase of 216: "The supply of teachers
and the movement of teachers from one Province to another
depends largely upon the salaries paid and it would appear that
Saskatchewan salaries must advance before an adequate sup-
ply of trained teachers can be maintained. An unusual move-
ment was noted in 1920 in the return of teachers, particularly
male teachers, to the Eastern Provinces. High Schools of the
East, particularly, are paying better salaries." In 1920 there
was a continued scale of increases in salaries. First Class male
teachers rose from $1,634 in 1919 to $1,881, and female teachers
from $1,132 to $1,352 and so on, with increases through all the
grades. The number of certificates issued to teachers trained
in Saskatchewan was 1,272 as compared with 1,992 for the pre-
vious year; during the year 809 teachers were placed by the
Teachers' Exchange, and of this number 481 teachers were lo-
cated in English districts, 54 in German districts, 2 in French
districts, 70 in Ruthenian districts, 13 in Scandinavian districts
and 189 in mixed districts.
The percentage of attendance in all Schools, by enrollment,
was 61-38. Much attention was devoted to School exhibitions,
School agricultural instruction with Boys and Girls Associa-
tions, Home economics and School hygiene ; the Cadet organi-
zations had 4,665 members or an increase of 1,500 in the year.
The number of pupils enrolled was 169,008 and the average
daily attendance 103,745 ; the number of Teachers was 6,809 of
whom 5,332 were females. Official figures for 1921 are not avail-
able. Reports indicate that 100 new School Districts were or-
ganized and three consolidated school districts. The School
Attendance Act was rigidly enforced and this resulted in a
marked improvement in the grade of children as compared to
their age. A larger percentage of pupils passed their exam-
inations in 1921 and many made better progress because of
more regular attendance — especially in the rural districts. New
legislation which came into effect at the beginning of the year
and gave $4.50 per day, per room, in each school, where work
above Grade VII. was carried on and an average attendance of
15 maintained, resulted in making it possible for such a room to
earn a grant of $900 per annum ; there were 100 schools where
this amount was earned.
There was a marked increase in the numbers of High
School pupils passing examinations in 1921. The School Hy-
802 THE CANADIAN ANNUAL REVIEW
giene Department had a record in the year of 35,839 school
children medically inspected by the school nurses; during the
year there were 930 teachers trained in the Normal Schools
of the Province. Incidents of the year included a statement
by Hon. Mr. Martin that there were 231 teachers' residences
in the Province supplied at Provincial expense ; the appoint-
ment of Dr. J. A. Snell as Superintendent of the Public Schools
in Saskatoon and H. H. Smith as Principal of the Victoria
High School in that City ; the announcement in September that
the Masonic lodges of the Province, with the sanction of the
Masonic Grand Lodge had offered 50 scholarships of $300 each
to assist prospective teachers holding, at least, 2nd class diplo-
mas valid in Saskatchewan in order to complete their profes-
sional training at the Provincial Normal Schools.
The controversy of years between the 11,000 Mennonites of
the Province and the Department of Education regarding Eng-
lish as the language of education, culminated in 1921, in attempt-
ed arrangements for a trek to Mexico or the Southern States>l
and the departure in December of a first party of 115 on their
way to Alabama ; there was a strike of school teachers at Moose
Jaw in April — backed by the Teachers' Alliance with settlement
by arbitration ; a summarized statement of annual reports from
the School Inspectors of the Province, in November, 1921, show-
ed that many new schools had been opened, that the new build-
ings under erection were of the best type, that many of the old
school-houses had been put into satisfactory condition, and that
vSchool trustees and the public were taking greater interest in
the welfare of the schools ; a remark of Hon. S. J. Latta, the new
Minister of Education, at Kindersley, on Sept. 22, reported
that schools where all the pupils were in regular attendance
numbered 300 in July, 1920, and 454 in July, 1921.
The chief Educational organization in Saskatchewan at this
time was the Provincial School Trustees' Association, and its
annual Convention was an event of the year. On Feb. 24-26 the
6th annual meeting was held at Saskatoon with James F. Bryant,
M.A., Liy.B., in the chair. Following addresses of welcome from
Mayor A. M. Young, President W. C. Murray of the University,
and Lieut.-Col. T. E. Perrett, President of the Saskatchewan
Educational Association, Mr Bryant delivered a notable address
upon public responsibility for Education: "The school, more
than all other agencies, can form national character, create a
permanent national opinion, and establish lines for it to io\-\J
low with steadiness and continuity. Patriotic and civic service,
therefore, should be a prominent feature of our Public School
education. We should pay more attention to the study of the
history of our country. We should endeavour to create in the
pupils of our schools, and to emphasize and establish as a nation-
al characteristic, a spirit of thoroughness, steadiness and moder- ^
ation and, above all, a love for honesty, truthfulness and fair-
play, coupled with obedience to the constituted authority, par-
ental or otherwise, and j-espect and courtesy to all."
SASKATCHEWAN AGRICULTURE AND EDUCATION IN 1921 803
Space will not permit of summarizing the- important
speeches which marked the Convention as a serious Education-
al event. Dr. George M. Weir spoke on Social Aspects of Ado-
lescent Education ; J. H. Currie of Vonda, on the Public School ;
Hon. N. W. Rowell, K.C., of Toronto, on the League of Nations;
Dr. J. T. M. Anderson on Canadianization Work amongst For-
eign Settlers ; William Iverach and T. A. Neolin, M.A., on the
Municipal School Unit; Hon. W. M. Martin, K.C., and Hon. G. P.
Smith, Minister of Education in Alberta, on Educational Condi-
tions ; Dr. H. M. Tory, President of the University of Alberta,
on University work. An immense number of Resolutions were
passed and may be summarized as follows:
1. Urging the extension of night schools to all non-English districts
so that new Canadians should have a better chance for obtaining know-
ledge.
2. Declaring the increase in Juvenile crime to be largely due to
Moving Pictures and demanding a more rigid censorship.
3. Re-affirming the conviction that the English language should
be the only language of instruction in the Schools of Saskatchewan and
asking legislation to make it compulsory for all School Trustees to read
and write the English language.
4. Approving the growing development of Empire Day celebrations
and urging that all schools participate with centralized meetings where
necessary.
5. Suggesting a thorough, comprehensive, and compulsory plan of
physical training for all schools.
6. Urging Provincial establishment of an institution for sub-normal
children.
7. Endorsing the establishment of a National Bureau of Education
and urging all Teachers to impress upon the children the necessity of
politeness and courtesy.
8. Urging the purchase by all School Boards of Canadian and other
British-made school furnishings, supplies and apparatus.
9. Asking for Provincial legislation to enable School Districts to
organize Municipal administration.
10. Requesting a Referendum at the next Provincial election upon
the abolition of the Separate School system in Saskatchewan and the
repeal of the Bi-lingual clause in the School Act, which provides for
the use of the French language in the primary schools.
11. Asking the Provincial Legislature to make "all the assessable
property in any school district at the time of the issue of any Debenture
liable for all rates necessary for the re-payment of that Debenture."
12. Requesting the abolition of Separate Schools.
13. Endorsing the establishment of a Thrift organization in each
School.
14. Declaring that "no sectarian religious emblems be displayed in
public schools at any time, and that no person be allowed to wear the
distinctive dress of any church while acting as a public school teacher."
15. Asking more adequate remuneration for small rural schools.
16. Urging the Department of Education to have the Act so amend-
ed that each child will be compelled to remain in school until the age
of 14 years, and as much longer as is necessary, up to the age of 16
years.
17. Endorsing energetic action to promote Boy Scout organization.
18. Proposing a non-contributory scheme of Government pensions
for Teachers with a small Levy on the School districts.
19. Demanding cancellation of certificates for teachers arbitrarily
breaking the terms of this engagement.
804 THE CANADIAN ANNUAL REVIEW
20. Asking for legislation to enable P. S. Districts to join together
for the purpose of forming a Union High School District.
The officers chosen for 1921-22 included A. J. Sparling,
Hon. President, J. H. Holmes, Hon. Vice-President, and J. F.
Bryant re-elected as President; W. F. Goulden, Ebenezer, was
elected 1st Vice-President and Joseph Needham, Unity, 2nd
Vice-President. The Secondary Education Section elected G.
F. Blair, K.C., Regina, as President. The Saskatchewan Teach-
ers' Alliance met in Regina on Mch. 29-30 and passed a Resolu-
tion denouncing the terms of an address by Mr. Bryant before
the Saskatchewan Educational Association in which he had
criticized the action of the Teachers in organizing the Alliance
as a second body when one was sufficient. Lieut. -Col. T. E.
Perrett and Mr. Bryant, on the following day, spoke at the Con-
vention banquet and the former declared himself in favour of
teachers organizing and of better salaries: "If, however, the
agitation for increased salaries is going to impede the progress
of the children then you are wrong, for the education of the
child is your first consideration." Mr. Bryant defended his
views and A. H. Ball, of the Education Department, spoke. A.
M. Bothwell of Regina was the new President of the Alliance,
and Dr. R. A. Wilson, Saskatoon, was elected President of the
S. E. A.
The University of Saskatchewan: This Provincial Institution,
for the academic year 1920-21, had an enrollment of 897 students in
regular courses, with 239 in evening classes and teacher's courses, or a
total of 1,136; when compared with the registrataion of 70, in 1909-10,
this showed a remarkable increase. Of the 1921 students 100 received
degrees in Arts, Science, Agriculture, Law and Engineering, and, in ad-
dition, certificates in Pharmacy, Household Science and Agriculture were
granted to 54 others. Numerous changes took place in the life of the
University. W. J. Bell and A. F. Angus resigned from the Board of
Governors during the year; P. E. Mackenzie, K.C. was appointed a
Governor, and on Nov. 23, 1921, Levi Thomson of Wolseley was re-ap-
pointed and Hon. Mr. Justice McKay added to the Board. The Univer-
sity suffered the loss of Prof. John Bracken, B.S.A., who resigned to ac-
cept the Presidency of Manitoba Agricultural College and of Professors
W. H. J. Tisdale, J. M. Smith, and J.S. Dexter.
The following were the more important appointments to University
Chairs during the year: A. E. Cameron, D.SC., Zoology; S. Basterfield,
B.SC., Chemistry; C. E. Muller, B.A., B.SC., French; M. Champlain, M.S.,
Field Husbandry; L. M. Winters, M.S., Animal Husbandry; G. M. Wil-
liams, B.S., C.E., Civil Engineering; E. L. Harrington, Ph.D., Physics;
W. D. Thomas, M.A., English; A. E. Potts, B.SC., Dairying; W. S. Lind-
say, M.B., Bacteriology ; Roy Hanson, M.S., Soils ; J. T. Herbert, M.A., LL.B.,
Law; A. G. MacGougan, B.A., Ph.D., Physics. In the Department of Ag-
riculture this University had developed specially wide interests and the
Report of the President, for 1920-21, stated in this connection that : "It
has become to a greater degree than ever before, the scientific arm
of the Province. It has been called upon to assist in solving serious
problems which threaten the very existence of Agriculture in South-
western Saskatchewan. Our scientists are to engage in a study of con-
ditions; in a soil survey; in plant breeding; in the cultivation of more
suitable crops; the prevention of disease; the eradication of weeds and
the control of insects. Equally important tasks are being undertaken
for the improvement of livestock and poultry and for development in
dairying."
SASKATCHEWAN AGRICULTURE AND EDUCATION IN 1921 805
The Extension Department, also, was rendering much service to the
scattered population of the rural districts, and either conducted, or
supervised, the following activities: Summer Exhibitions, 140; Ploughing
Matches, 34; Standing Crop Competitions, 32; Summerf allow Competi-
tions, 9; Seed Drilling Competitions, 4; Spring Stallion Shows, 6; Co-
operative Live Stock Sales, 21; Calf and Colt Shows, 3; Poultry Show,
26; Seed Fairs, 44. In the winter months 45 Agricultural Short Courses,
lasting two or three days, were held at country points, reaching a total
of 4,546 persons or an average of over 100 people at each place of meet-
ing. Three Agricultural Engineering Short Courses were also held at
the College of Agriculture, each of three weeks' duration, with a total
enrollment of 105, and, besides these, 6 two-week courses dealing with
the same subjects were held at different centres in the country, where
156 students attended. Other work of this department included a 3-
weeks' Poultry course ; instruction in stock judging at the Regina and
Saskatoon exhibitions to 1,000 boys ; supervision of competitions at the
Regina and Saskatoon Farm Boys' Camps with 420 entries ; the conduct
of the Provincial Seed Fair. f.* jfo
The investigations of the Engineering Department were very im-
portant and included reports on the best type of House-Construction
so as to conserve heat ; it issued Bulletins and plans of Farm Buildings
and investigated economical methods of fuel consumption as well as
problems relating to Gas Tractors and Farm Machinery. A serioius
problem in the West, particularly where alkali waters saturated the
soil was the rapid deterioration of concrete structures and it had been
the cause of much interest and concern. The Engineering Institute of
Canada appointed a Committee of Engineers of which Prof. C. J. Mac-
kenzie of the University was Chairman and the Research Council of
Canada voted $5,000 for this work — much of which had already been
done at the University laboratories. The possible utilization of the vast
clay resources in the Province resulted in the appointment of Prof. W.
G. Worcester of Ohio State University, as Professor of Ceramic En-
gineering, to work in co-operation with the Bureau of Industries for any
possible development in the matter.
Other incidents of the year included the practical completion of the
Physics Building at a cost of $400,000; the completion of new Green-
houses and a building for Biological and Pathological Laboratories ; the
assumption by the University of Bacteriological and Pathological work
for the Hospitals in the City of Saskatoon and for the Bureau of Health
in the northern part of the Province; the establishment of a Department
of Horticulture at the College of Agriculture with C. F. Patterson, Ph.D.,
M.S., as Professor in charge; the handing over to the University of a val-
uable collection of insects and plants of Western Canada, by Mrs. T.
N. Willing, which her husband, the late Professor Willing, had made,
to be known as the "Professor Willing Memorial Collection"; the dona- \
tion from the War Trophies Committee of 3 Aeroplanes and 4 Machine \
Guns; an offer of $12,000 from the Khaki University and Y.M.C.A.,
through President H. M. Tory, to be known as the Khaki University and
Y.ftl.C.A. Memorial Scholarship Fund and to be used as scholarships or
temporary loans in order to assist Returned men or their sons or
daughters, through any University Course; the organization of a Branch
of the C.O.T.C. with an establishment of 175 men under Major Potte,
Officer Commanding. It might here be mentioned that, between 1919-21,
the University assisted in giving Vocational Courses to over 700 dis-
abled Soldiers and granted to Returned men, numbering 175 in 1919-20,
and 152 in 1920-21, exemption from fees, totalling over $10,000 for two
years.
There was, also, the appointment of Dr. E. H. Oliver, of the Presby-
terian Theological College. Saskatoon, and Prof. W. P. Thompson, of
the University as Fellows of the Royal Society of Canada ; the celebration
of the 10th anniversary of the opening of Regina College at a banquet
on June 11, 1921; the inauguration of a drive for $350,000 to pay off the
806 THE CANADIAN ANNUAL REVIEW
debt on the St. Joseph's Ukrainian College at Yorkton, and to further
develop the academic work of the College— with fair returns ; the resig-
nation of Rev. G. F. Trench as Principal of Emmanuel College, (Angli-
can) Saskatoon and the appointment of Rev. L. H. C. Hopkins, M.A., B.D.,
as Acting-Principal, with the award of an Hon. degree of D.D. to the
Ven. A. D. A. Dewdney, B.A., Bishop of Keewatin.
The Saskatchewan Grain Growers' Association. This Assoc-
iation was one of the most important social and political influences in
Western Canada; its 20th annual Convention was held at Moose Jaw, on
Feb. 1-4, 1921, with 1,600 delegates in attendance from all parts of the
Province. Many subjects, dealing with National and Agrarian interests,
were discussed, but the Convention was chiefly notable for .two out-
standing questions, the Wheat Pool proposals and the Farmers' attitude
toward Provincial politics. Other incidents were the unveiling of a Roll
of Honour in memory of the 559 members of the Association who fell
in the Great War, and the formal recognition of Hon. T. A. Crerar as
the Federal political leader of the Agrarian organizations in Canada.
President J. A. Maharg, M.P., in his annual address, deplored the dis-
continuance of the Wheat Board and claimed that this had been largely
responsible for the poor financial returns to the farmer during the year
1920 and, therefore, he urged the necessity of a Co-operative marketting
system for grain; he wanted a more elastic loaning policy, on the part
of the Banks towards Farmers, and claimed that the banking attitude, in
furnishing only a seasonal credit, was one which would, if persisted in,
compel the extension of the Rural Credit scheme to Saskatchewan; he
also dealt with the reduction of Freight Rates and the meeting of cer-
tain propaganda (industrial) which had been attacking the United
Farmers and their policies. The Executive Report, presented by Secre-
tary J. B. Musselman, dealt with 9 meetings held by that body in the past
year and stated that it had been represented at all the meetings of the
Council of Agriculture, at sessions of the Canada Grain Commission, the
Tariff Commission, and other public bodies. Included in this Report was
a statement of the Tradine Department of the Association, which showed
a net Profit of $14,486 on ail transactions for the year of Dec. 30, 1920,
with Expenditures of $47,913, and Revenues of $62,399. The Hon. George
Langley, at request of the Convention, opened a discussion on wheat
marketting (Feb. 3rd) and in his address covered a wide range. Hon.
C. A. Dunning, H. W. Wood, of Alberta, and C. Rice-Jones also spoke on
the subject.
The debate on Provincial political action extended over portions of
two days, with some heated interchanges, and is dealt with in a precednig
Section. Some excitement arose over a Resolution condemning the in-
crease in Elevator charges during 1920, and citing the annual financial
statement of the Co-operative Elevator Co., as a specific example. James
Robinson, its Managing Director, gave figures showing the revenue de-
rived by that Company from special binned grain, together with the cost
of handling it for each year since organization. In only one year was the
Company able to break even on this class of business, and in the past
year they had suffered a loss of 2^4 cents a bushel on all binned grain
handled, and these losses had to be made up from other departments
of the business. The result was that the spread on street grain was
higher than it would otherwise have been. Finally the Resolution was
defeated by a large majority and a motion in favour of the increase
was adopted in its place. The following were the more important Reso-
lutions passed :
1. Supporting the appeal of the Stock Growers' Association that a
duty be not re-imposed on Canadian import of cattle as long as the
U.S.A. admitted Canadian cattle free of duty, and urging the Dominion
Government to continue its efforts to secure removal of the Embargo
on Canadian live cattle entering the British Isles.
SASKATCHEWAN AGRICULTURE AND EDUCATION IN 1921 807
2. Pressing on the Federal Government the necessity of completing
the Hudson Bay Railway.
3. Requesting that the two vacancies from Saskatchewan in the
benate be filled by residents of Northern Saskatchewan.
4. Pledging support to papers supporting the New National Policy
and to the manufacturers advertising in such journals.
5. Recommending the official publication, annually, of the value of
all overages received by the Federal Government under arrangements
whereby all Terminal elevator overages over one-quarter of one per
cent, were appropriated by the Government; also that moneys so ob-
tained should be used to help defray the cost of Inspection and Weigh-
ing which had increased by 100 per cent
6. Favouring the publication of Association literature in as many
different languages as the Executive considered advisable.
7. Approving the decision of the Board o_f Directors to add nothing
to the Association's demands upon the Provincial Government and plac-
ing any further political action in the hands of the Convention.
8. Expressing regret at the failure of the Federal Government to
re-appomt the Canada Wheat Board, commending the Council of Agricul-
ture for its efforts in that respect, with an appreciation of the work
done by the Board.
9. Expressing gratification at the results of the Referendum on
importation of intoxicating liquor into Saskatchewan ; appreciation of
the Federal Government's action in this connection; commendation of
the endeavours of the Provincial Government to enforce the Liquor law;
concurrence in the creation of the Liquor Commission with wide powers
and pleasure in the appointment to that Commission of Allan G. Hawkes
of the S.G.G.A.; pledging sympathetic support to all proper efforts to
enforce the Saskatchewan Liquor Act.
10. Urging the Provincial Government to amend the law so that
execution should automatically lapse unless the property of an execution
debtor, against whom the execution was taken, was specified within
30 days from the date of registration and, also, that provision be made
that notice of action be mailed to each party with a registered interest
in such property.
The officers for 1921-22, as elected, were J. A. Maharg, M.P., Presi-
dent; A. G. Hawkes, Vice-president; J. B. Musselman, T. M. Morgan,
Thomas Sales, John Evans and H. C. Fleming, Directors. The Hon. T.
A. Crerar, M.P., H. W. Wood, President of the U.F.A., and Norman P.
Lambert, of the Council of Agriculture, addressed the Convention and,
at the conclusion of Mr. Crerar's speech, W. J. Orchard, President of
the New National Policy Political Association, moved, with unanimous
approval, endorsation of the action of the Council of Agriculture and
of the Provincial Committee in recognizing Mr. Crerar as Dominion
leader of the movement ; an outstanding speech was that by Hon. Mr.
Dunning, Provincial Treasurer, on Farm Loans, Rural Credits and Bank-
ing Problems, which is referred to elsewhere. He remarked that the
Banking Act of Canada would come up for revision in 1923 and the
Farmers' Party Government, would have a splendid chance to cut their
eye teeth on it.
Other incidents of the year were the entry of J. A. Maharg into the
Provincial Cabinet and his subsequent retirement; the announcement, in
September, by the United Grain Growers, Ltd., of their readiness to ship
live-stock to Great Britain on a Co-operative Pool basis; the defence of
the system of handling wheat through properly administered Grain Ex-
changes, by J. B. Musselman; the annual Convention of the Saskatche-
wan Co-operative Elevator Co., at Regina, on Nov. 23. This meeting was
attended by over 300 delegates, with Mr. Langley in the chair. The
Directors' Report showed a net profit for the year of $279,413; 15 new
Locals added, bringing the total number to 339; a total number of shares
issued up to July 31, 1921, of 69,326 held by 21,535 persons; 12 new
THE CANADIAN ANNUAL REVIEW
elevators built and a total of 26,195,943 bushels of grain handled through
the 320 Elevators in operation, together with 1,794,494 bushels over the
platforms, or a total of 27,990,437 bushels.
The Woman's Section, S. G. G. A., held its 7th annual Conven-
tion concurrently with the S. G. G. A. at Moose Jaw, during Feb. 1-4,
1921. Mrs. Margaret Flatt, in her Presidential address, spoke of an in-
creasing field of responsibility with which the Executive was coming
into contact; stated that the Women's Section now had representation
in the Council of Agriculture and hoped that the conference between
Delegates of the W. S. G. G. A. and Mr. Premier Martin, in December,
1920, would result in valuable- additions to the Educational programme of
the Province. The Executive Committee reported four meetings during
the year, and that an Assistant Secretary had been appointed to relieve
the Secretary for more active field work. Following the December
meeting a Committee of four was appointed who, accompanied by J. B.
Musselman, held the above-mentioned conference with the Minister of
Education, discussed various rural educational problems, and suggested
to him that grade as well as an age standard for compulsory atten-
dance would result in a higher form of education and be an aid in the
administration of the School Attendance Act.
Another incident, which it was hoped would result in greater co-
ordination amongst the Grain Growers, occurred when Directors of
the Women's Section were, for the first time, called to convene with the
Central Board, and entered into its general discussion. The Ambulance
Fund, amounting to $2,250, was stated to have been utilized in the pur-
chase of an automobile which was turned over to the Earl Gray Military
Hospital. Following this, other reports were submitted and they showed
that the providing of rest rooms, travelling libraries, hot noon lunches,
and play-grounds' equipment for schools, had occupied the interest of
many of the Locals ; a total of 53 new Locals had been formed during
the year ; 45 new Canadian schools had been adopted by the Women's or-
ganizations for assistance in Canadianization of alien children.
Only a few Resolutions were considered, some being referred back
to the Committee for re-drafting, but the majority were turned over
to the Executive with blanket authority to deal with them. The follow-
ing, however, touching on Educational questions, were passed at the
final meeting: (1) Petitioning the Department of Education to amend
the School Law so that each child be compelled to remain in school
until the age of 14 years, and as much longer, up to 16 years, as was
necessary to complete the standard of Grade VI; (2) asking the Pro-
vincial Government to establish, as soon as possible, an extension li-
brary service in connection with the Travelling Libraries Department,
similar to the system operated in Alberta and known as the "open shelf."
On Feb. 2nd the old Executive was re-elected; Mrs. C. E. Flatt of Tan-
tallon, President, Mrs. W. H. Frith, of Birmingham, Vice-President ;
Mrs. Ida McNeal, of Expanse, Mrs. John McNaughton of Harris, and
Mrs. S. V. Haight, of Keeler, Directors.
The probabilities in this contest were all with
the Government which, though the lineal descen-
dant of the Scott Liberal Government of 1905-16,
did not at this time assume the name and style of
Liberal ; it had four Grain Growers amongst its
members and the support of a majority in that
powerful organization, with President Maharg as
one of the Cabinet ; there was no organized Con-
servative opposition and no recognized Leader to any of the
elements which opposed it in the constituencies. Mr. Martin was
The Sas-
katchewan
General Elec-
tions: The
Martin Gov-
ernment Sus-
tained.
THE GENERAL ELECTIONS IN SASKATCHEWAN 809
able, forceful, popular, and Mr. Dunning, as his first lieutenant,
had very similar qualities ; the Government had done good ser-
vice to the Province and had an excellent record ; the Cabinet was
united, and there had, up to the Elections, been no personal
scandals as to administration or politics amongst its members.
On Apr. 27, Donald Maclean, K.C., had retired from the Con-
servative leadership which he had held since 1917, and announced
that he would not be a candidate; the Provincial Conservative
Convention of that date, with 75 Delegates present, did not elect
a successor but appointed a Provincial Committee, with Dr. Lee
of Frobisher as Chairman, to make all arrangements for the
coming Election ; it was decided to concentrate on the constitu-
encies where there was a chance of success, and candidates were
to run as straight Conservatives. The membership of the exist-
ing House stood 47 Liberals, 6 Conservatives and 3 Indepen-
dents. During this period a distinct tendency was shown to
nominate Independent opponents of the Government and in the
end, very few Conservatives ran as such.
At a Convention in Saskatoon, Mr. Premier Martin spoke
at length on May 14 and made his preliminary campaign speech
with the Government record and freight rates and wheat mar-
ketting as leading topics ; he was explicit as to an effort under
way to revive the Separate School question and discredit the
Public School system ; it was, he said, a submarine sort of
struggle and the Government stood for the constitutional sys-
tem as legally established ; he referred, also, to the Independent
movement and described it as a sort of Party in itself. On May
16 the Elections were announced for June 8 with nominations
on the 2nd ; at the same time, the Premier issued a Manifesto to
the Electors. He first stated that the chief reason for this
action — the preceding contest had been on June 26, 1917 — was
"the desire of the Government that the public business of Sas-
katchewan should be dealt with on its merits and not confused
or affected by issues which affect the whole of Canada and
questions which are of Federal jurisdiction." He declared, em-
phatically, that "the Government of the Province should not be
responsible for the organization or the policies of any Federal
political party and that the people should be given an opportun-
ity to express themselves on Provincial affairs at a time when
there is no Federal election in immediate prospect."
He then reviewed the 4 years' policy of his Government^
specified lines of special assistance by it to the Soldiers and their^
dependents, and stated that, following the principle of co-oper-
ation between the Government and the farmers, which had been
established for a number of years, further extensions of the
Co-operative Elevator system had recently taken place — includ-
ing the erection of a large terminal plant at Port Arthur — with
the financial assistance of the Government. The experiment in
Co-operative stockyards and Co-operative shipping, he added,
bade fair to lead the way to great improvements in marketting
conditions. Mr. Martin claimed that the $7,600,000 loaned to
810 THE CANADIAN ANNUAL REVIEW
farmers under the Farm Loans Act on long terms of re-payment,
was a much larger amount than had been loaned under any other
Government scheme in Canada; he mentioned the Mothers'
Allowance Act, the Minimum Wage Board, the steady improve-
ment of Education, the development in Highway construction,
the Relief work in fuel, food, fodder and seed, carried out for
the farmers in the past year ; he claimed that the Public Health
Act and Regulations made by the Bureau of Public Health, ac-
companied by firm administration, had placed Saskatchewan
in the lead among the Provinces of Canada in this work; he
stated that the affairs of the Province had been conducted in
a business-like manner and that all supplies, wherever practic-
able, had been purchased by tender and all contracts for public
buildings awarded by tender after proper advertisements. The
following were the chief pledges made on behalf of the Gov-
ernment if returned to power :
1. To co-operate with the farmers in any practicable method of
improving the system of marketting grain and tarm products generally.
2. To continue the fight now waging for lower freight rates, believ-
ing that the present unbearable charges constitute one of the heaviest
burdens on our people.
3. To provide for an Agricultural survey of the Province by the
College of Agriculture and the establishment of Demonstration Farms
under the control of the College and in close touch with the people.
4. To carry out a thorough investigation of the whole problem of
Tuberculosis by experts in the treatment of the disease and the pro-
vision of necessary institutions to properly care for both curable and
incurable cases.
5. To continue vigorous enforcement of the Saskatchewan Tem-
perance Act and to give effect to the expressed will of the people on
this subject.
6. To propose to the Legislature from time to time such Labour
measures as will keep Saskatchewan in the lead among the Provinces,
and to consult the representatives of labour on all matters affecting
their interests.
7. To always keep in view the necessity of ensuring to every child
the most efficient elementary education possible, with a thorough know-
ledge of the English language and the widest opportunities for higher
education.
8. To take all possible measures to render the Teaching profession
more permanent.
9. To develop the co-related Highways system in the Province, the
foundation of which is already laid; assistance to be given in the con-
struction of main roads leading to market towns in co-operation with
rural municipal councils — the work itself to be undertaken by the mun-
icipalities.
10. To, wherever practicable, extend the Provincial Telephone sys-
tem, thereby encouraging the more rapid development of the Rural sys-
tem.
11. To put forth its best efforts to obtain from the Dominion auth-
orities the transfer to the Province of its natural resources, and to de-
velop the work of the Bureau of Labour and Industries in investigating
and making known the nature, extent and industrial value of the natur-
al resources.
12. To further develop a policy of assisting farmers in the purchase
of Live-stock; to encourage the work of the Farm Loans Board as far
as it is possible to obtain money for the purpose; to continue the policy
THE GENERAL ELECTIONS IN SASKATCHEWAN 81 1
of assisting financially the Saskatchewan Co-operative Elevator Co., the
Co-operative Creameries Co., and the Co-operative Stock Yards.
13. To appoint a Commission, representative of both urban and
rural interests, to consider the incidence of the Public Revenue Tax
with the object of devising means of removing inequaities.
At Weyburn, on May 23, the Premier reviewed the activities
and policy of his Government ; declared that he had never been
in an Election where he felt greater confidence ; made the inter-
esting statement as to Patronage that "we have a Civil Service
Commissioner whose duty it is to provide for appointments in
the Civil Service, but I do not hesitate to say that in the
filling of the more important positions the responsible head of
the Department affected makes the selection"; described the
Government costs in fighting the grasshopper plague in 1920
' as $364,269 and the value of the crop saved as $25,000,000; stated
that the Saskatchewan Co-operative Elevator Co., founded and
carried on with Government assistance, had 322 elevators and
20,000 shareholders, had handled to the end of February, 1921,
209,416,891 bushels of grain and was the largest initial grain-
handling concern in the world ; as to the schools, stated that
"generally, conditions in those attended by non-English children
are just as satisfactory as conditions in thoroughly English-
speaking settlements."
Meanwhile, the Independent movement had been gaining
ground with the Conservatives as the basic element ; with some
support from Separate School advocates ; with many farmers
running as independent candidates and, practically, Agrarians ;
with, also, some Non-Partisans who still cherished competitive'
hopes against the Grain Growers and who operated in the North-
east of the Province with the same platform as their colleagues
in North Dakota ; with Labour candidates in Regina, Moose Jaw
and Saskatoon. Harris Turner, the blind veteran who was again
a candidate for the House, was instrumental in calling a Conven-
tion of these Independents. The meeting took place in Sas-
katoon on. May 31 with W. M. Thrasher of Dinsmore in the
chair. The active members were Harris Turner, F. S. Wilbur,
W. T. Badger, and R. H, Milliken; the keynote of the meeting
was antagonism to the Martin Government and Mr. Turner's
statement that "Parties tend toward corruption and should no
longer be permitted to exist." Proposals to establish a Provin-
cial Independent political party were rejected and it was decided
to form a Central Committee for organization purposes which
was to function until Election day and was composed of Harris
Turner, Thomas Carroll and William Thrasher. Resolutions
were passed denouncing the Government for bringing on the
Flections during seeding-time ; opposing the Party form of
Government, and supporting a business-like type of adminis-
tration," carried on by all members of the Legislature, instead of
by a Party caucus ; censuring Mr. Premier Martin for lowering
the dignity of his office by charging Independents with being
Bolshevists and Radicals
812 THE CANADIAN ANNUAL REVIEW
On June 2nd, 16 Government candidates were elected
by acclamation, including Hon. G. A. Scott, Speaker of the late
Legislature; Hon. S. J. Latta, Hon. C. A. Dunning and Hon. J.
A. Maharg, members of the Government; well-known Liberals
such as John M. Uhrich, J. G. Gardiner, and W. H. Sahlmark.
Amongst the more notable candidates in the field were Lieut.-
Col. J. A. Cross, D.S.O., in Regina, who was well-known as a
Liberal ; Rev. D. M. Oliver, Moosomin, also a war veteran, and
Major R. T. Graham — both Government supporters ; Mrs. M. O.
Ramsland who had succeeded her late husband in a bye-elction ;
Harris Turner in Saskatoon, blinded in the war and now running
as an Independent; W. G. Baker (Labour) a C.P.R. conductor
living in Moose Jaw. The Conservative candidates included G.
A. Cruise, a prominent lawyer of Saskatoon, James Pascoe, ex-
Mayor of Moose Jaw, A. D. Gallaugher, formerly member for
Thunder Creek.
Incidents of the campaign included Mr. Maharg's charge,
on June 5, that the scheme of putting up the Independent can-
didates was engineered from the office of the Minister of Rail-
ways at Ottawa ; the heated anti-Martin despatches of this
period in the Toronto Telegram which denounced an alleged pro-
Separate School propaganda and policy in Saskatchewan led by
Mr. Martin and illustrated in the Gravelbourg incident where a
Public School was housed in a Convent for want of another
building; the candidacy of W. T. Badger, well-known as a Con-
servative, but running in Rosetown as an Independent and act-
ing as a sort of Leader in that rather vague organization ; the
inclusion of 4 known Conservatives, 4 Labourites and 4 Non--
Partisans amongst the Independents. The result of the contest
was a substantial victory for the Martin Government with the
Prime Minister receiving a personal vote of 7,300, which was
said to be the largest ever obtained in a Saskatchewan election ;
with all the Cabinet re-elected by large majorities except Hon.
George Langley who was defeated in Redbury by an Indepen-
dent ; with the return of 12 Independents and two Conservatives
and the defeat of three Government supporters in the late House
including R. A. Magee and J. A. McMillan; with Mr. Pascoe, a
Conservative, defeating E. Murray Thompson (Government) in
Moose Jaw and the election in this city of a Labour candidate
as its other member. The following table shows the candidates,
those elected, politics and majorities:
Opposition Candidate
Constituency Government (Independent) Elected Majority
Arm River Hon. G. A. Scott Hon. G. A. Scott Accl.
Battlefords A. D. Pickel A. D. Pickel Accl.
Bengough T. E. Gamble E. A. Devlin T. E Gamble 833
Biggar L.V. Locker John Meikle John Meikle 776
Cannington Robert Douglas W. G. Stockton Robert Douglas 728
Canora H. P. A. Hermanson John Shabits
B. M. Sawiak H. P. A. Hermansofl 197
Cumberland *Hon. Geo. Langley Hon. Geo. Langley Accl.
Cut Knife W. H. Dodds T. C. Raymond W. H. Dodds 242
Cypress H. T. Halvorson H. T. Halvorson Accl.
Elrose W. Hagarty H. A. Metcalf W. Hagarty 256
A. M. Wick
THE GENERAL ELECTIONS IN SASKATCHEWAN
813
I
.H. M. Therres."
Constituency Government
Estevan Robert Dunbar
Francis
Gravelbourg..
Hanley
Happy land
Humboldt
Isle a la Crosse
Jack Fish Lake
Kerrobert
Kindersley...
Kinistino
Last Mountain Hon. S. J. Latta
Lloydminster R. J. Gordon...
Lumsden
Maple Creek
Melfort
Milestone
Moosomin
Opposition
(Independent)
Candidate
Elected
Majority
Robert Dunbar Accl.
...W. G. Robinson S. N. Horner W. G. Robinson 227
...Emile Gravel W. J. Cummings W. J. Cummings 270
...E. R. Ketcheson P. G. Henrichs E. R. Ketcheson.. .... 1058
Stephen^ Morrey A. E. B. Donovan. ...Stephen Morrey 1861
H. M. Therres Accl.
J. O. Nolin 105
D. M. Finlayson Accl.
J- A. Dowd J. J. Cochrane J. A. Dowd 1192
R. B. Jones W. H. Harvey W. H. Harvey....' 1909
J. R. Taylor John McCloy J. R. Taylor 169
*J. O. Nolin J. E. Burnouf.
D. M. Finlayson
J. K. M
D. S. H
Mclnnis.
.Hon. S. J. Latta Accl.
R. J. Gordon Accl.
W. J. Vancise 825
.P. L. Hyde.
.W. J. Vancise
.P. L. Hyde
.G. B. Johnston J. A. Macdonald G. B. Johnston
.Bernhard Larson Bernhard Larson
.D. L. Oliver J. L. Salkeld J. L. Salkeld
E. M. Thomson W. G. Baker (Lab.)..W. G. Baker
.Harold Fletcher James Pascoe James Pascoe.... 6
Hugh McKellar
Moose Jaw, County .Hon. Chas. A. Dunning
Morse Hon. J. A. Maharg
North Qu'Appelle J. G. Gardiner...
Moose Jaw
City
631
703
....Accl.
71
205
Hon. Chas. A. Dunning Accl.
Hon. J. A. Maharg Accl.
J. G. Gardiner Accl.
George Spence
Accl.
Notukeu George Spence
Pelly Mrs. M. O. Ramsland G. F. Stirling
(Non- Partisan) Mrs. M. O. Ramsland 449
H. W. Slipchenko
C. E. Tran
Pheasant Hills J. A. Smith H. W. Lindsay
W. H. Blyth J. A. Smith 538
.Thos. Harkness W. J. Patterson 94
Prince Albert
Charles McDonald
A. B. Potter
Charles McDonald
Accl
Redberry
Regina City
..Hon. Geo. Langley
Hon W M Martin
....George Cockburn George Cockburn
F B Bagshaw Hon W M Martin
250
1588
Rosetown
Rosthern
J. A. Cross
...J. A. Wilson
John M Uhrich
....Harry Perry (Lab.).J. A. Cross
Henry Black
....W. T. Badger J. A. Wilson
John M Uhrich
2452
295
. Accl.
Saltcoats
..Dr. G. W. Sahlmark....
Dr. G. W. Sahlmark
Accl.
Saskatoon
City
Hon. A. P. McNab
J A Valens
....Harris Turner Hon. A. P. McNab
G A Cruise (Cons) Harris Turner
319
474
Saskatoon, County
Shellbrook
...Murdo Cameron
E S Clinch
A. M. Eddy
....Charles Agar Charles Agar
A McGowan E S Clinch
109
583
South Qu'Appelle..
Souris
Swift Current
...Anton" Huck
...Ed. Waddington
R T Graham
....D. H. McDonald.... ..D. H. McDonald
...J. P. Gordon J. P. Gordon
D J Sykes D J Sykes
483
30
..85
Thunder Creek
J. G. Laycock ( (Lab.)
W J F Warren W J F Warren
42
A. D. Gallaugher (Cons).
->/V7
Tisdale.
Touchwood...
Turtleford
Vonda
Wadena
Weyburn
Wilkie
Willow Bunch
Wolseley
Wynyard
...Arch. Gemmell
*H. E. Jones H
..J. M. Parker A.
(Non- Partisan)
.Fred Webb
J. H. Currie
A. MacMillan W. H. McKinnon
.Hon. C. M. Hamilton.
Reuben Martin
A. J. Kindle
James Hogan.
J. McPhail....
E. Bolton
.T. McLelland.
H. E. Jones..
207
,...J. M. Parker 504
...Arch. Gemmell 123
...James Hogan 1923
...W. H. McKinnon 740
...Hon. C. M. Hamilton 2057
.R. A. Magee Geo. Bennett
.D. B. Musselman G. W. Robertson.
S. Bingham S. Bingham 99
J. H. Wallace A. J. Hindle 507
Geo. Bennett 384
.:.G. W. Robertson 672
Yorkton T. H. Garry A. R. Reusch T. H. Garry 647
The Independent vote in the contest proved unexpectedly
large ; in three constituencies — Cumberland, Isle a la Crosse
and Tisdale — elections were deferred with, eventually, J. L.
Nolin elected as a Government supporter in Isle a la Crosse, and
H. E. Jones in Tisdale ; Hon. George Langley was the Govern-
ment candidate in Cumberland and was elected over W. C. Mc-
Kay find.), who retired too late from the field and lost his de-
posit. Mr. Martin's majority at the close of the year, and as a
result of the Elections, was 29.
*NOTE. — These were deferred elections with final results as indicated.
Alberta: Ag-
ricultural
and Mining
Conditions
of 1921;
The United
Farmers.
THE PROVINCES OF ALBERTA
AND
BRITISH COLUMBIA
Alberta, originally and in large degree, was a
ranching country; when Agriculture began to de-
velop and then grew with lightning strides, settle-
ment and farming went together; many farms
were started in the South, where much of the coun-
try was best fitted for grazing and, without irri-
gation, not well adapted for agriculture. Hence
the difficulties which came in bad years to so many
of its farmers. Everything started well in 1921, the seeding was
early, the season at first favourable, the acreage 1,700,000 more
than in 1920; then followed a series of dry and hot spells of
weather, hail storms over an unusually wide area, grasshoppers
and other insect pests worse than usual, soil-drifting in the South
bad, though not as extensive as in 1920. The result was a dis-
appointing crop, with a continued fall in prices; added to all
this was the exclusion of cattle from the United States market.
H. A. Craig, Deputy-Minister of Agriculture, in his annual
Report for 1921, described this as one of the most difficult years
ever experienced by the farmers of Alberta — with a crop failure
in portions of the South and low prices, high freights, and high
prices for some of the articles required on the farm. He ex-
pressed, however, much optimism as to a future along mixed
farming lines and in Dairying development. C. P. Marker, Dairy
Commissioner, estimated the 1921 value of Dairy products as
$25,500,000 compared with $34,000,000 in 1920— Creamery but-
ter, with 44 creameries operating, being valued at $4,572,000
compared with $6,555.509 and Cheese with 10 factories in oper-
ation totalled $215,125. S. G. Carlyle, Live Stock Commissioner,
dealt with the slump in prices for cattle, which fell from $6.00,
$8.00, $10.00 in the first part of the year, according to grade and
quality, to $3.00 and $4.00 in October, and described the chief
reason as the new American Tariff: "The stockmen of Alberta
looked upon the Chicago Stock Yards as their natural market,
consequently prices paid here were based on prices obtained at
that market. The imposition of the Tariff forced the prices of
Alberta cattle down so that producers were forced to sell their
stock at a tremendous loss. The cattlemen being thus handicap-
ped by the -tariff, turned their attention again to the British
market for the solution of the problem confronting them."
The first results were not satisfactory.
The Department's work during the year — under Hon. Dun-
can Marshall as Minister and, latterly, Hon. George Hoadley,
was varied and important. Much was done to fight noxious
weeds with 29 new Inspectors appointed, encouragement to
[8141
ALBERTA AGRICULTURE, IRRIGATION AND MINES 815
field crop competitions and Seed fairs and grain distribution
amongst 1,300 farmers. The Poultry Commission reported a
large and continuous increase in poultry — from 3,172,777 in 1916
to 4,963,565 in 1921, with a turkey growth, in particular, of 100
per cent, in three years— the Marketting Branch of the Depart-
ment doing good work as to both poultry and eggs; the Pro-
vincial Demonstration Farms at Vermilion, Olds, Gleichen, Clare-
sholm, Sedgewick, Athabasca and other points, continued their
excellent record, while Exhibitions and Fairs were held at 108
places during the season with results reported as gratifying to
the Superintendent— Alex. Galbraith ; Big game killed during the
year were reported to the Department as totalling 1,018 Moose,
223 Caribou, Mountain Sheep and Goats, and 1,120 Deer — the
Provincial Game Warden holding conditions in check with li-
censes and a system of oversight.
The increasingly important Women's Institutes reported
330 Societies and 15,300 members under Miss Isabel Noble of
Daysland as Provincial President, and a work which included
Foods and Cookery courses and 24 other Short Courses in Sew-
ing, Home Nursing and Handicraft with an attendance of 5,028;
214 Demonstration lectures attended by 7,490 students and 68 or-
dinary lectures with 2,718 in attendance ; 463 meetings were held
with a total attendance of 17,691 ; the Reading Collection of the
Institutes was made up of bulletins, (15,000 distributed), refer-
ence books, and clippings from magazines, newspapers, pam-
phlets, speeches and addresses and was largely used with Travel-
ling libraries specially promoted; the Standing Committees on
Child Welfare, Public Health, Education, Legislation, Irriga-
tion, Household Economics, Agriculture, Publicity and Canadian-
ization, did effective work during the year, while District and
Constituency Conferences were held with much success ; $98,771
was raised for charitable purposes and the Girls' Clubs increased
to 55 with 990 members.
The Crop Statistician reported 8,803,121 acres in crop with
141,392,233 bushels of grain — an increase in area of 886,639
acres and a decrease in product of 74,256,511 bushels from 1920;
this compared, however, with a production in 1911 of only 50,-
907,531 bushels. The College of Agriculture, under E. A. Howes,
Dean, reported an enrollment in the year of 47 students for the
Spring term and 70 for the Fall term, with 10 graduates ; the
departments of the College work included Horticulture, Poultry,
Dairying, Agriculture, Engineering, Soils, Field and Animal
Husbandry and the usefulness of its instruction was a growing
factor in the Province. The Schools of Agriculture at Olds,
Raymond, Gleichen, Vermilion, Claresholm, Youngstown, with
254 students, reported to the Minister valuable work in Research,
Ensilage, Trench Silos. Grasshopper Pest, Experiments, Mech-
anics, Subsoiling, Entomology, Meteorology and other subjects.
Shipments for the year, as given by the Live-stock Commis-
sioner, totalled 24,264 Horses and 332,519 Cattle. Meanwhile,
816
THE CANADIAN ANNUAL REVIEW
farmers concerned in Hog production and dairying had a double
advantage — very low prices for feed and high prices for their
finished product. The general production of 1921, according to
Provincial statistics*, was as follows:
Products
Fall Wheat
Spring Wheat
Acres
85,114
4,564,290
2,139,743
755,651
523,891
138,836
51,377
30,000
454,883
6,991
52,345
8,803,121
Average
Per Acre
17-25 bus.
11 -30 bus.
30 -00 bus.
1 • 50 tons
22 • 25 bus.
14 -40 bus.
158 -50 bus.
1-75 tons
1 • 00 tons
10-00 tons
40-87
Yield in
Bushels
1,468,000
51,576,000
64.192,000
1,133,476 tons
11,657,000
1,999,000
8,143,000
52,500 tons
454,833 tons
69,900 tons
1,780,000
Price
$ -71
.77
.24
10.00
.32
.62
.50
12.00
10.00
4.00
Value in
Round
Numbers
$ 1,042,000
39,714,000
15,406,000
11,334,760
3,730,000
1,239,000
4,072,000
630,000
4,548,330
280,000
799,200
Oats
Oats, (Green Feed)
Alfalfa
Timothy, etc
Fodder Corn and Sunflowers
Mixed Grains and Sundries
Total
Animals slaughtered and sold....
140,835,000 bus.
1,710.709 tons
$82,795,290
$17,290,416
25,500,000
300,000
1,500,000
8,470,000
1,600,000
Wool Clip (2 177 123 ibs )
Game, Furs, etc
Poultry and Poultry Products.
Horticultural Products and Ga
rden Stuff...
Grand Total.
$137,455,706
The Provincial figures as to Live-stock showed 916,110
Horses valued at $36,660,400; 1,854,202 Cattle worth $79,731,400;
523,599 Sheep worth $4,188,792 and 574,318 Swine valued at
$10,337,724; Poultry stated at a valuation of $5,671,004. The
total value was $136,589,320. There was an all-round estimated
increase in Live-stock of 175,000 in Horses, 1,500,000 in Cattle,
287,000 in Swine, and 140,000 in Sheep. According to Federal
official figures for 1920 and Provincial for 1921, there was a
loss in values of $23,000,000 on Horses with a gain of $20,000,000
in Cattle and of $4,000,000 in Sheep and Swine ; similarly in
Field crops, there was a decrease in values of $86,000,000 in
wheat, $26,000,000 in Oats, $7,000,000 in Barley and Rye, $6,000,-
000 in Potatoes and Turnips, $3,000,000 in Hay and Alfalfa.
Coupled with the two-year drought in the Southern region be-
tween Calgary and Lethbridge, and two years' decline in prices
throughout the Province and the cutting off of the American
markets, it was little wonder that even the extraordinary and
justifiable optimism of the West gave way for a time to de-
pression in Alberta. It was a passing phase, as in parts of Man-
itoba and Saskatchewan : back of it was a long record of great
progress and much prosperity ; but it influenced many conditions
and, amongst others, of course, the fate of the Government. As
a matter of fact, the fall in prices was so great that a reaction
developed at the close of the year and both Live-stock and the
1921 grain crop realized more than official estimates showed.
The following table (Federal official figures) indicates the Ag-
ricultural Income of Alberta farmers over a four-year period
with the effect of the after-war deflation in prices:
*Note— Budget Speech of Hon. H. Greenfield, Mch. 13, 1922.
THE HON. HERBERT GREENFIELD, M.L.A.
Appointed Prime Minister of Alberta in 1921.
ALBERTA AGRICULTURE, IRRIGATION AND MINES 817
Alberta
Field Crops.
1918
$113 072 000
1919
$158 044 000
1920
&?O4 ?Q7 OftO
1921
Farm Animals
33 164 000
26 353 000
Wool
1 349 000
1 172 000
528 000
3^5 000
Dairy Products
10 387 000
14 620 000
17 616 000
Fruits and Vegetables....
1 500 000
1 500 000
1 500 000
] 500 000
Poultry and Eggs
4 480 000
4 480 000
5 040 000
6 160 000
Fur Farming
26,000
26,000
12,000
16,000
Totals $163,978,000 $206,195,000 $245,042,000 $124,512,000
To meet the Live-stock and United States situation, Mr.
Marshall, as Minister of Agriculture, took an active part in urg-
ing- the removal of the British Embargo upon Live cattle. He
was in England at the close of 1920 and joined Mr. Doherty of
Ontario and Dr. Tolmie of the Dominion Government, in educat-
ing British opinion along this line ; tie crossed again in May, 1921
and appeared before the Royal Commission appointed to en-
quire into the matter. He told the Toronto Globe (July 1st), on
his return, that its findings would depend on the evidence ; that
every possible courtesy and assistance was given the Canadians
in pressing their points publicly and at the Enquiry; that the
demand for feeding cattle in the Old Country was very keen, as
shown by the fact that stockers commanded a premium of 20
shillings per 100-weight over beef cattle ; that the farmers in
the north of England and in Scotland were anxious to have the
Embargo lifted in order to utilize the immense stocks of feed
on hand; that during the past 12 months not more than 15 per
cent, of the meat sold at the great Smithfield market had been
fresh-killed.
The Minister's statement for Alberta, as presented to the
British Commission (Edmonton Bulletin, July 6) was an able
document which reviewed the Resolutions passed by the Al-
berta, Saskatchewan, Manitoba and Ontario Legislatures pro-
testing against the Embargo ; quoted a recent despatch from the
British Government to Uruguay pointing out that 6 months was
too long a period for an embargo which that Republic was plac-
ing on British cattle because of an outbreak of disease and asked
if 29 years was not too long for Canada ; reviewed the health
condition of Canadian cattle and, as to danger from the long
United States boundary line, pointed out that Canada had been
able to protect that line against disease for some 30 years and to
do this so effectively that during the outbreak of foot-and-
mouth disease in the United States in 1914 and 1915 no trace
of the disease was allowed to get into Canada. The ultimate
Report of the Commission was received with satisfaction in
Alberta.*
The farmers and the Government, also, had to meet another
invasion of grasshoppers in June and July, and there was a
tremendous demand for ingredients of war against the pest;
there was a tendency not to return to points where they had
been fought in 1920 and they injured grains more than gardens ;
fences were said to be a great breeding ground for the insects,
*Note.— See Empire Sestion of this Volume.
27
818 THE CANADIAN ANNUAL REVIEW
and there was some demand for amendment of the Herd law so
that fences could be dispensed with; Calgary was, at one time
in June, menaced by a great army of the invaders and an organ-
ized fight had to be put up. Despite their appearance at various
points in 1920 and in 1921, the subject was new to most of
Alberta's farmers and a good deal of education was necessary
to make them understand the menace. The Department estab-
lished centres for distribution of poison ingredients and informa-
tion, great quantities of molasses and other material were ob-
tained and distributed and many areas of crop saved from de-
struction.
During the year there was continued discussion of the Live-
stock situation. The Calgary Herald, on Aug. 3rd, declared that :
"Canadian stockmen, to-day, are at the mercy of American buy-
ers. No other market is available, and prices have been knocked
down to the lowest point they have reached in 20 years. Low
as prices are, the Western stockman has to pay the 30 per cent,
duty imposed by the Young-Fordney measure, plus the amount
of the exchange." Facing this situation was an estimated 50,000
of unfinished Alberta steers as to which the ranchers had no
certainty of sale with much expensive feeding to still carry out.
From the cattlemen Resolutions and protests poured into Ot-
tawa dealing with the shrinkage of commodity values, the prac-
tical withdrawal of further credits, virtual exclusion from the
United States markets and the absence of long term credit
facilities. New markets were urged for Alberta Stocker cattle
and this problem was the first one which the new Provincial
Government had to face. A trial shipment of fat beef cattle,
sent to Scotland in June by the Department of Agriculture,
showed a loss in the end ; they were shipped to Glasgow and sold
in the public market for immediate slaughter. Meanwhile, im-
mature stocker cattle were being sold at a sacrifice to American
buyers who wanted cheap young stock for next year's markets.
On Nov. 12 Mr. Hoadley, the new Minister of Agriculture, told
the Winnipeg Free Press of a proposal he had just placed before
the Ottawa Department of Agriculture as to the feasibility of
establishing finishing stations for Canadian cattle in Belgium,
Holland, or France ; shipping the cattle there, and feeding them
long enough to restore their bloom and remove any bruises re-
ceived in transit ; slaughtering them and a few hours afterwards
placing the freshly-killed beef on the British market.
Agricultural incidents of the year included the curious and
widely-heralded efforts of a Californian named C. M. Hadfield
to bring rain to Alberta farmers when needed ; a contract under
which he received $8,000 for two months' work near Medicine
Hat, and the statement in the press of May 17, while the efforts
were under way, and after "making rain" for about a month,
that local farmers had asked Hadfield to "turn off the moisture
for a few days" and seemed quite satisfied that he could and did
deliver the rain as per contract; the development of Beaver
ALBERTA AGRICULTURE, IRRIGATION AND MINES 819
farming with special success at the Edgerton farm of F. F
Parkinson with 100 beavers in stock and profitable conditions
stated m the press of June 25 ; the shipment of 3,000,000 pounds
of wool by Alberta farmers with most of it taken by Canadian
mills ; the largest fall of Hail in the Province during its history
with heavy losses to Hail Insurance interests.
The victories of Alberta farmers at the Chicago Interna-
tional Stock and Grain Show of Nov. 26 made an interesting
event— the 2nd Prize in Hard Spring Wheat going to L. G. H.
Strange of Fern, the title of Champion Oats grower of the
World being won for a second time by John W. Lucas of Cayley,
the 1st and Grand Championship in Alfalfa going to Messrs.
Grafton and McNaughton, farmers, of Brooks, Alberta; Dr.
O. H. Patrick, Calgary, successfully handled the only flock of
Karakul sheep in Canada with its valuable product of Persian
lamb fur; on May 17 it was stated that the famous Noble
Foundation, a great ranching and farming concern south of
Calgary, with an owned and leased area of 65 square miles and
a harvest in 1920 of 197,000 bushels of wheat and 74,245 of rye,
was in the hands of a friendly Receiver but not actually insol-
vent.
Irrigation Problems and Progress. Meanwhile, the situa-
tion in the South had accentuated the importance of the Irriga-
tion work of past years and accelerated the popular movement
for further progress. Southern Alberta was anxious for a defi-
nite Government policy in this connection. The Stewart Gov-
ernment, in 1920, was frankly afraid of a problem involving 1,-
500,000 acres of land which would benefit by Irrigation — at an
estimated total cost of $100,000,000! The tentative legislation
of the previous year* had practically failed through the inability
of the Lethbridge Northern Irrigation District to sell its $5,400,-
000 issue of Bonds and the projects discussed in January of
this year were (1) that the Province should finance the Leth-
bridge project and demonstrate to the investing public that Ir-
rigation District bonds were good investments, or (2) that the
Province should guarantee the principle and interest on the
bonds for a term of years.
There was no doubt as to the success of Irrigation when
properly financed and applied — as in the splendid C. P. R. areas
of Southern Alberta. In this region it had transformed the face
of the country, won American championships for cereals and
tubers grown in irrigated land, caused crops to grow which
were previously not adapted to the country, and made wealthy
men of many struggling farmers. It increased the average yield
of wheat 77 per cent., oats 54 per cent., barley 81 per cent.,
notatoes 250 per cent., on the Irrigated farms of this region and
the passing years only confirmed its soundness and advantage.
But the C. P. R. had done its work in this connection and proved,
*Note. — See The Canadian Annual Review for 1920 — Alberta Section.
820 THE CANADIAN ANNUAL REVIEW
in its $25,000,000 project, the value of Irrigation and its import-
ance to the country; it now refrained from new projects but
strongly recommended an Irrigation policy and bonds issued
under right conditions.
In April the Provincial Government decided to guarantee
principle and interest of the bonds of the Lethbridge Northern
District and the Legislature, with practicable unanimity, approv-
ed the policy; the Legislature also provided that the Irrigation
Council of the Province should let the contract for construction
and exercise general supervision over the Trustees; the District
to be dealt with comprised 104,758 acres with water to be de-
rived from the Old Man River; within a brief period surface
surveys had been completed, sub-surface surveys inaugurated,
and the Council supervising the further development of the pro-
ject; tenders were requested for the actual work of excavating
canals and ditches. The first block of Debentures, $2,400,00,
30-years, 6 per cent., were issued at the end of May and were at
once taken up in Toronto; various contracts were awarded on
June 2nd and before the Summer was over other areas were
demanding Government assistance and there was talk of $50,-
000,000 being spent in the next five years on Southern Alberta
Irrigation schemes. In July, Wood, Gundy & Co., of Toronto,
stated that $4,400,000 of the Lethbridge bonds had been sold
and had proved a very attractive security; that, also, the cost
of the project would be considerably less than the original esti-
mate of $5,400,000. By the Autumn the following Districts had
organized, or partially so, for Irrigation purposes with 1,700,000
acres involved:
United Irrigation District between the Belly and Waterton rivers;
the South Macleod Irrigation District of 60,000 acres ; the Retlaw-Lomond
project, covering 70,000 acres; the Medicine Hat Southern and Eastern
projects, 10,000 acres ; the Beaver Creek project, 10,000 acres ; the Cham-
pion project, 50,000 acres; the Little Bow project, 3,000 acres; the Leth-
bridge Southeastern project, 500,000 acres; the North Saskatchewan pro-
ject, acreage unknown; the Little Bow project, 3,000 acres.
Some of this work depended upon the St. Mary and Milk
Rivers and their tributaries, which were international in char-
acter, and several conferences in this connection were held in
September between Canadian and American officials. The sub-
ject was discussed, from both the Alberta and British Columbia
points of view, at the 15th Convention of the Western Canada
Irrigation Association, Vernon, B.C., on July 28-30. J. A. Mc-
Kelvie, M.P., presided and Resolutions were passed (1) express-
ing appreciation of the work done during the past years by the
Dominion and Provincial Governments, in preparatory surveys
and stream measurements ; (2) urging the Dominion Govern-
ment to keep up with the United States Government in a scheme
of co-operation to make satisfactory arrangements for the use
of water from the St. Mark and Waterton Lakes in Montana;
(3) asking the Dominion, also, to hasten the surveys relating
to the taking of water from the St. Mary and Milk Rivers, which
ALBERTA AGRICULTURE, IRRIGATION AND MINES 821
were subject to International Treaty; (4) urging the Dominion
to ascertain at once how much land in Southern Alberta could
profitably and economically be irrigated from water wholly con-
trolled by Canada. Hon. J. A. Maharg, Saskatchewan Minister
of Agriculture, was elected President for 1921-22.
The subject was discussed at a meeting of the Western
Canada Colonization Association held at Calgary on Aug. 3rd,
with Mr. Premier Greenfield of Alberta taking part, and at the
Convention of the Engineering Institute of Canada at Saskatoon
on Aug. 10. The International Waterways Commission met at
Chinook, Montana, on Sept. 15, and at Lethbridge on the 17th,
to deal with the Milk River matter. G. R. Marnoch, the Alberta
pioneer in this general project, presented the subject to the
Commission and a letter was read from Mr. Greenfield stating
that Irrigation development in the territory affected by the
Rivers in question was entirely at a standstill and urging a de-
cision: ''The success and, in fact, the necessity of Irrigation in
the territory served by these streams has been amply demon-
strated. The Reclamation service of the Dominion has made
very complete surveys ; the Provincial Government has provided
a very complete machinery for the formation and administra-
tion of co-operative Irrigation districts properly supervised; the
lands are practically all occupied and the people almost unani-
mous in their desire to proceed to form districts and construct
their Irrigation works." At Edmonton, on Nov. 8th, the Alberta
Premier announced the personnel of a Southern Alberta Survey
Board which was to fully investigate and report upon the Irri-
gation situation. The Board was to consist of C. A. Magrath,
Chairman; Judge A. A. Carpenter, of the Public Utilities Com-
mission of Alberta ; G. R. Marnoch, ex-President of the Board
of Trade at Lethbridge, and W. H. Fairfield, of the Dominion
Experimental Farm at Lethbridge. The stated objects of the
Board were as follows:
1. To formulate a policy in regard to the development of farm lands
as to which surveys of the Dominion Reclamation Service show the pos-
sibility of Irrigation.
2. To study methods in furtherance of the Colonization of Irrigable
lands.
3. To develop a policy as to the furtherance of^the greater economic
advantage of farmers on lands which cannot be irrigated.
4. To expedite the investigations by soil and topographical surveys
already initiated.
5. To report upon the general financial conditions prevailing in the
areas referred to, having regard to the prime necessity for the mainten-
ance of credit of individuals, institutions and municipal and school dis-
tricts.
Acting with the Commission in a co-operative way was L. C.
Charlesworth, Chairman of the Irrigation Council of Alberta,
and he delivered a notable address to the Calgary Board of Trade
on Nov. 25, in which he dealt with the Council's work in organ-
izing the Irrigation Districts and looking after the movement
as a whole. The new Survey Board held its first meeting at
822 THE CANADIAN ANNUAL REVIEW
Medicine Hat on Nov. 29, and then went on to Lethbridge,
Retlaw, Hanna and other points, up to the close of the year. By
the end of the year, in addition to the existing C. P. R. Irrigation
works of 361,(X)0 acres and the Canada Land and Irrigation Sys-
tem of 50,000 acres, there was a completed Taber system of
17,000 acres under the Alberta Act with the Lethbridge North-
ern prospect of 105,000 acres, the United Irrigation District of
23,000 acres, and the South Macleod Irrigation District of 50,-
000 acres, under way.
Alberta Mineral Interests of 1921. This Province is said
to contain one-fourteenth of the Coal supply of the world; the
greater portion of it is usually called Lignite, but there are large
resources in Bituminous and some Anthracite is produced ; Ed-
monton and other areas produced a coal which they claimed was
not Lignite but a special and better variety, and proofs were
produced which had some strength. The Exchange situation
and dependence of Canada upon Pennsylvania coal, the fact
that over $200,000,000 was, at this time, going into the United
States yearly to pay for this imported product, made these re-
sources of great importance; the conditions of production and
capital and labour and transportation in Alberta became a na-
tional question. At the beginning of 1921 the Coal operators
were in a difficult position. They claimed that as members of
the Red Deer Coal Operators' Association, they were operating
under an agreement with the United Mine Workers of America,
District 18, which was to last until March, 1922 ; that under this
agreement, which was entered into at a time of stress, they were
paying higher wages than the industry could stand; that the
price of their product was inflated, in comparison with the prices
of other products which the public required, and that they could
not meet the competition of American coal ; that coal miners'
wages were excessively high in comparison with those obtain-
ing in other departments of labour.
They did not, however, make any move to break the agree-
ment. Meantime, the miners in the Edmonton District demand-
ed an increase in wages, and claimed that they were getting less
than was paid by the Drumheller and other mines of that field.
All through the year the issue of high wages and freight rates
and American competition harassed the owners ; during much
of the time Manitoba was getting American coal so cheaply
that the Alberta fuel could not obtain a permanent foothold.
Competition was keen and fierce ; it was alleged that West Vir-
ginia coal was laid down in Chicago at a freight of $3.58 a ton,
while from the Crow's Nest Pass the rate to Winnipeg was
$5.30 a ton. American bituminous coal was retailed in Winnipeg
at $9.75 a ton and against this Alberta coal had to be sold at
from $12.75 to $15.50 a ton — chiefly because of wages and freight
rates. At the same time, the Alberta mine owners, in agree-
ment with U. M. W. A., were paying higher wages than the non-
union mines and were losing some of their own local markets.
The production of 1921 in Alberta, according to Federal figures,
ALBERTA AGRICULTURE, IRRIGATION AND MINES 823
was $29,458,531, compared with $33,586,456 in 1920. Provincial
statistics showed the following tonnage of production:
Product
Domestic Coal
1920 tons
3 359 308
1921 ton*
2 943 1 1 1
Bituminous Coal
3,419,021
2,887,185
Anthracite Coal . .
. .. 130 594
96,974
Total .
6 908 923
5 927 270
Briquettes
101 922
62 466
Total Tonnage 7,010,845 5,989,736
The Provincial Report as to 1921 production, submitted by
J. T. Stirling, Chief Inspector of Mines, stated that of the above
product 3,429,960 were shipped to Alberta points, while 1,914,-
156 were exported outside the Province but within Canada,
and the balance to the United States. During 1921, 333 coal
mines, two shale mines, and one copper mine were in opera-
tion, 90 coal mines were opened during the year, 17 re-opened,
and 17 abandoned. There were 12,204 employees at the close of
the year, and during the year the Provinces west of the Great
Lakes had imported 2,479,484 tons of coal from the United
States. An incident of the year was the alleged discovery, in
December, ot platinum and gold deposits along the banks of
the Red Deer River with current activity in staking claims.
The development of the great Northern region of the Peace
and the Athabasca Rivers continued during 1921 with Edmonton
looking for its future to the vast drainage basin of the Northern
Rivers. The Alberta and Great Waterways Railway was
a short and direct route from Edmonton to the North, and its
completion to Fort McMurray was a matter of importance. The
tremendous game riches of this North country; the evidences
that it was a storehouse of unexploited Minerals; the curious
fact of its being, in parts, a splendid agricultural region ; its un-
limited resources in salt, fish, timber, and water-power and pos-
sibilities as to petroleum, were conditions of this year, as of
1920. During the year a good freight service was established
by the A. and G. W. Line to McMurray with 122 cars and 2,285
tons carried between Nov. 1st, 1920, and Mch. 31st.
Meanwhile, Oil continued to be a possible source of riches
in Alberta. Prof. J. A. Allan, M.SC., Ph.D., in the publication al-
ready mentioned, defined several sections in which there were
Oil possibilities: (1) Southwestern Alberta; (2) the Sweet
Grass Hills; (3) the Okotoks Field; (4) Central Eastern field--
between the North Saskatchewan and Athabasca Rivers within
the Foothills; (6) Peace River; (7) the Upper Peace River
field; (8) Great Slave Lake; (9) the Lower Mackenzie basin.
The bituminous sands of Northern Alberta and the Northwest
Territories enclosed an enormous supply of Oil, in Professor
Allan's judgment but, up to the present time no process capable
of extracting this Oil content had been discovered. It was stated
by the Montreal Financial Times (June 4) that $1,000,000 was be-
spent in Southern Alberta for Oil leases with another mil-
824 THE CANADIAN ANNUAL REVIEW
lion invested in drilling rigs with other machinery actually in
operation or soon to be in operation. The Imperial Oil Co. was
drilling in the Great Slav** Lake field, as well as at Fort Norman ;
its operations were said to include Fort Norman, Windy Point,
Pine Point, Peace River, Pouce Coupe, Brazeau, Coalspur, Irma,
Monitor, Okotoks, and Pincher Creek ; by March 66,000 acres of
claims had been filed and there seemed no doubt that the pos-
sibilities of finding extensive recoveries of petroleum were
greater in Alberta and the Mackenzie Basin than in any other
part of the Dominion. During the Summer investors and in-
terested parties continued to arrive in Edmonton and Calgary
from the United States and at one time in the season, 41 wells
were actually drilling with seven of this number resuming oper-
ations after a lapse of some time.
The United Farmers of Alberta. The year 1921 saw this organ-
ization of Farmers and Farm Women firmly established as an agricultur-
al factor and political unit of great influence. The 13th annual Con-
vention of the U. F. A. met in Edmonton on Jan. 18-21, with 1,465 Dele-
gates in attendance and several hundred visitors. H. W. Wood pre-
sided for the 6th time and, during the Convention, the Hon. T. A. Crerar,
M.P., was recognized as National leader of the Farmers' movement in
the Federal field. Mr. Wood, delivered a careful address on economic
lines and a keen analysis of existing conditions. H. Higginbotham,
Secretary, in his Report stated that during 1920, 172 Locals had been
formed, making the total 892 as compared with 756 in 1919; the number
of Women's Locals had increased, in the same time, from 210 to 293,
and the Junior Branches from 20 to 62; the total number of all Locals
was 1,251, including 4 affiliated Agricultural Associations which paid
regular dues to the Central body. The total membership was 30,000 and,
as stated later in the year (Oct. 31), was 33,312; the Report also refer-
red to the interest evinced in the U.F.A. by Foreign-speaking farmers
throughout the Province and, as a result, advised the preparation of
certain literature in French and Ukrainian for organization purposes.
Following this the Convention made a number of technical changes in
the Constitution as to the U. F. W. A. and the Junior U. F. A. which
latter was devoting its efforts toward work in the Schools.
A large number of Resolutions occupied attention for three days
and one of special note was regarding Provincial Political action. The
question of a Provincial newspaper to serve the Farmers' movement
caused debate and President Wood, in placing a Resolution before the
Convention, pointed out the necessity of having control of such an or-
gan if the Association was to derive benefit from it. The Convention
finally approved the establishment of a paper in which the U. F. A.
should maintain a controlling interest. The mountain scale of rates in
effect on the E. D. and B. C. Railway evoked criticism on the ground
that they were excessive and a severe handicap to settlers along the
main line and, therefore, the Legislature was asked to request the Rail-
way Commission to reduce freight, passenger and express rates in oper-
ation on that line, to a Prairie scale. In this connection the Convention
recommended the appointment of a representative farmer to fill the
vacancy on the Board of Railway Commissioners. In all 248 Resolutions
were put forward for discussion with about one half considered. A
summary follows of the more important ones passed:
1. Favouring the reduction of Armaments and the settling of all
disputes between Nations in an International Court.
2. Recommending that a Committee be appointed to draw up a
Provincial political platform for distribution to all Locals for discussion.
THE UNITED FARMERS OF ALBERTA 825
3. Appointing a Committee to deal with the problem of foreign-
born farmers and their instruction in the principles of the U. F. A.
4. Urging the Provincial Government, in view of the fact that it
had built and partly equipped 7 Agricultural Colleges, to complete those
built before establishing others.
5. Opposing any changes re Insurance in Alberta and the introduc-
tion of a Bill by the Alberta Insurance Department to increase the
license fee for writing Hail and Fire insurance with conditions as to new
licenses which were said to be practically prohibitive for anyone not
engaged in the Insurance business on a large scale.
6. Requesting the installation of efficient cattle guards and proper
and legal fences along the Government Railways.
7. Asking the Department of Public Works to construct all bridges
in the Province at least 20 feet wide, in order to allow the passage of
the larger Agricultural implements.
8. Instructing the Executive to investigate ways and means of man-
ufacturing leather and cotton cloth in order to overcome the long
railroad haul on those articles and the prices imposed by manufacturers.
9. Urging the Minister of Agriculture to enact legislation putting
the Weed Act into more stringent and effective force.
10. Protesting in the matter of naturalization against the action of
the Secretary of State as to incoming Ukrainians and Bucovinians in
requiring a certificate from the Polish Consul-General at Montreal to
the effect that the place of birth of the immigrant was within the pres-
ent Republic of Poland.
11. Condemning the Dominion Franchise Act, and urging that all
naturalized citizens be given the same protection as native-born.
12. Urging the pressing need of Telephone service in many rural
districts.
13. Opposing the action of several Municipal Councils which had
passed By-laws placing a prohibitive tax on agents, peddlars and auction-
eers.
14. Asking that the existing law as to a judgment against one per-
son standing, also and arbitrarily, against another person of the same
name should be repealed and such judgment apply only against the first
party to it.
15. Asking the Provincial Government to publish annually a state-
ment of the money raised from taxing automobiles, and spent in each
municipality.
16. Petitioning the Provincial Government to pass a law compell-
ing all Loan Companies doing business in the Province to accept in-
surance in any Insurance Company licensed and authorized to do busi-
ness in the Province.
17. Favouring a full Government guarantee of the bonds of the
Lethbridge Northern Irrigation District at the next Session of the leg-
islature.
18. Protesting against the alleged abuse of power on the part of
the Dominion Government in substituting Orders-in-Council for leg-
islation.
19. Calling upon the Dominion Government to press upon the Brit*
ish authorities for redemption of the alleged promise to remove the Em-
bargo against Canadian cattle.
20. Favouring the Nationalization of Canada s Banking and Credit
Systems. .
21. Expressing approval of a Resolution proposed but not passed in
the last Legislature, urging the right of private members to vote against
a Public Bill without defeating the Government.
22. Recommending the representatives of the U. F. A., in conjunc-
tion with the representative of the other Provincial organizations af-
filiated through the Canadian Council of Agriculture, to assist in prepar-
ing the way to final establishment of a Co-operative scheme for the
marketting of the wheat crop of the Dominion.
826 THE CANADIAN ANNUAL REVIEW
23. Favouring the direct selling of commodities through some means
to be provided whereby speculation would be eliminated.
24. Expressing appreciation of the services rendered by the Can-
adian Wheat Board and particularly, by its Chairman, James Stewart.
25. Urging upon the Federal and Provincial Governments the im-
portance of enacting legislation so that in future all Federal and Pro-
vincial elections should be held under the Hare system of Proportional
Representation.
The Hon. T. A. Crerar addressed the Convention on Jan. 19. He
traced the development of the Farmer in politics and stated that the
returned soldier ought to be a first charge upon the revenue ; urged that
the finances of the Government Railways be re-organized by writing
down the Assets to a business valuation and that the Government should
utilize its own Railways for its own business ; declared that in the political
field in which all the interests of the people were affected, there should
be no refusal of assistance by the Farmers from those who were willing
to help. The officers elected for the ensuing year were : President, H.
W. Wood, Calgary, and an Executive composed of H. Greenfield, West-
lock; Rice Sheppard, Edmonton; $. S. Sears, Nanton ; E. J. Garland,
Ramsey. H. Higginbotham, Calgary, was continued as Secretary-Treas-
urer. In connection with the U.F.A., there were incidents during the year
which excited local and, in some cases, wider interest. On Oct. 6, Joshua
Fletcher, a pioneer in the organization and President of the Grande
Prairie District Association, tendered his resignation as an official, de-
nounced President Wood in strong terms, and claimed that his action
was a protest against what he called the "one man power" principle
dominating the U. F. A. The matter was discussed with some interest
because of Mr. Fletcher's prominence in the organization. Another in-
cident was the action of Dr. Michael Clark, M.P. for Red Deer, in de-
claring his opposition to Mr. Wood's opinions as to class organization
and in leaving the Farmers' Party — with ensuing defeat in the
Federal Elections. During this event, also, Rice Sheppard, an officer of
the Central Executive, failed to obtain the U. F. A. nomination for his
constituency of Strathcona and accepted one from the Labour party,
in opposition to the U. F. A. candidate in Edmonton. Such action was,
in the opinion of a number of Locals, antagonistic to the constitution,
and they passed Resolutions asking for Mr. Sheppard's resignation.
The United Farm Women of Alberta held its annual Conven-
tion at Edmonton concurrently with the U. F. A., on Jan. 18-21, but met
in separate sessions, with Mrs. M. L. Sears in the chair. The Secretary
reported a total of 293 local unions— 83 more than in 1920— and a mem-
bership of over 3,000, in addition to which the Junior Locals had increas-
ed from 20 to 62— and on Oct. 31 following, had a membership of 1,165.
Among the many questions discussed were Education, Health, Junior
work, Prohibition, Legislation,and a place for the illegitimate child— as
well as Co-operative marketting, and the proposed Wheat-pool. Pol-
itics proved as interesting to the women as amongst the men and Mr.
Crerar spoke, separately, to the Convention and, later on, was endorsed
as leader of the new Party.
Mrs. Paul Carr, in respect to Education, urged the retaining of
older, more experienced, and conservative teachers; thought that in-
creased salaries would go far to provide adequate teaching facilities for
the rural schools; strongly opposed the paying of the same salaries to
inexperienced and young teachers as to older and more experienced ones.
The Educational Committee reported (1) that the Public School, proper,
should consist of the first six grades; (2) that junior High Schools
should be established to take in Grades VII., VIIL, and IX.; (3) that
senior High Schools should take in the remaining High School classes;
c u vocational subjects should be introduced into the junior High
schools and, also, that a scheme be worked out whereby the Dominion
LAST DAYS OF THE STEWART GOVERNMENT 827
Government might contribute for educational purposes dollar for dol-
lar with the Provinces ; (5) that the Dominion Government should es-
tablish a Federal Department of Education with a Federal Minister.
Mrs. W. Parlby, for the Committee on Public Health, advocated the re-
moval of Education entirelv from politics and suggested that it be
handled by a Commission ; she also introduced a Resolution, which was
passed, urging the Nurses' Association and the Red Cross Society to
take up, without delay, the question of training nurse-aids for service
in the Rural districts. The elected officers for the new year were: Mrs.
M. L. Sears, Nanton, President (re-election) ; Mrs. S. B. Gunn, Paradise
Valley, and Mrs. D. C. Welch. Gleichen, Vice-Presidents. The following
were the more important Resolutions passed:
1. Urging the Provincial Government to enact legislation giving
municipalities the right to erect a High School, with dormitory at-
tached, so as to enable rural children to get the advantage of High
School education near home, and under competent supervision — the
Government to assist the municipalities financially.
2. Asking for an amendment to the School Attendance Law that
children under 14 years of age must be in attendance at school 90 per
cent, of the time, instead of 75 per cent.
3. Recommending the establishment of Homes and Training Schools
for first petty offenders and that in no case should they be released until
they had learned a trade or some means of earning a living.
4. Urging that all liquor prescriptions with the name of the doctor
who issued them, should be registered in the drug-store books, said
books to be open to the public at all times.
5. Recommending that the Government provide for a search being
made for the fathers of children born out of wedlock.
6. Calling upon the Provincial Government to implement its prom-
ise by so amending the Alberta Liquor Act as to correct the evils arising
from the abuse of doctors' prescriptions.
7. Favouring a Provincial Library policy that would bring necessary
books to every rural resident.
8. Suggesting the extension of naturalization to wives of aliens, to
wives of naturalized British subjects, and of allowing a woman who was
a British subject by birth to retain her British nationality if she should
marry an alien.
The Hon. Charles Stewart, in his 4th year of
La«t Day. of Provincial Premiership, had a difficult political sit-
the Stewart uation to meet ; a general Election during this year
Government: cjeare(j the air, but it also ended a Liberal Govern-
ment of the Province which had lasted under A.
Legislation C. Rutherford, A. L. Sifton and Charles Stewart, for
in TfZl. 16 years ; the latter, in 1921, had to face financial de-
pression and agricultural losses, together with the
finally expressed determination of the United Farmers of Al-
berta to go into Provincial politics in opposition to his Govern-
ment. The first incident of the year was the re-appointment of
the popular Lieut-Governor, Robert George Brett, M.D., I.L.D.,
with the rather unusual honour of a second term; he was sworn
in at Edmonton on Jan. 1st. Another matter of Provincial im-
portance, though of Dominion appointment, was the re-organ-
ization of the Courts of Alberta, in October, when the Hon. David
Lynch Scott, of the Supreme Court of Alberta, was appointed
Chief Justice and member of the Appellate Division ; the Honour-
able Messrs. W. L. Walsh, M. S. McCarthy, W. C. Simmons, and
828
THE CANADIAN ANNUAL REVIEW
W. C. Ives, of the Supreme Court, as Judges of the Trial Division
of that Court, and the Honourable Messrs. C. A. Stuart, N. D.
Beck, and J. D. Hyndman as members of the Appellate Division,
Supreme Court.
A strong protest was registered by the Province against the
action of the Dominion Government regarding the G. T. P.
branch lines in Alberta. Mr. Premier Stewart wrote to the
Dominion Premier early in May stating that when payment of
interest fell due on the Grand Trunk Pacific branch lines the
Province had to make good in London to save its credit as guar-
antor of the bonds : "The Dominion Government seized the
Branch Lines by force of statute passed by the Parliament of
Canada without consulting the Province — although the Province
holds the first mortgage, on the roads and their equipment be-
cause of its guarantee of the bonds. The Dominion Government
has been in possession of these lines since March, 1919 and in
receipt of their revenue."
Meanwhile, the Province had made two payments of interest:
"The Government of Alberta does not propose to stand for this.
We do not propose to permit the Dominion Government to col-
lect the revenue of these lines and leave us to pay the interest
on the bonds. The Government intends, if the Dominion does
not promptly refund the payments, to commence legal action and
to foreclose and take possession of the branch lines of the G. T.
P. in Alberta." A little later Mr. Stewart of Alberta and Mr.
Oliver of British Columbia met in conference and discussed the
question of railway facilities for the Pouce Coupe district, Mr.
Stewart urging extension from Grand Prairie and the British
Columbia Premier wanting it from Spirit River. No definite
agreement was reached, however, as to the combination and
meeting of the two Provincial Railway systems which this would
have involved.
The Reports of the Departments for 1921 were issued by
the Ministers of the Greenfield Government; some of the in-
cidents associated with that of Mr. Stewart may be briefly men-
tioned. The Directors of the Alberta Hail Insurance Board
stated, on Sept. 16, that the premium rate for 1921 in the Muni-
cipal Hail Insurance scheme was 10 per cent. ; that in 1919 and
1920 it was six per cent, or an average of 7l/z per cent, for the
three years. After all expenses of Administration had been
paid, there would be a surplus in 1921 of $200,000; the total
acreage assured at the beginnig of the season was 2,266,321
acres but on account of bad crop conditions the Insurance on
212,366 acres was cancelled leaving a net total of 2,053,955 acres
on which Insurance was carried throughout the season; the
total risk carried for the year was a little over $20,000,000 and
the total award $2,150,000 or about 40 per cent, more than the
1919 and 1920 awards, combined, with losses amounting to near-
ly 11 per cent, of the total risk carried.
LAST DAYS OF THE STEWART GOVERNMENT 829
In June of this year the Alberta Government Telephone
System made arrangements for the installation of a carrier
current system of multiplex telephony, sometimes called "Wired
Wireless," to operate between Edmonton and Calgary. Such
Carrier systems as well as Carrier telegraphy had been used ex-
tensively in the United States during the past two or three
years but had not as yet been utilized in Canada. The Prov-
ince would, by the aid of these carrier circuits, it was expected,
be able to extend its range of telephone communication to
more distant points than was otherwise possible. The work of
the Provincial Censor Board increased in importance during the
year with Mrs. H. A. Harbottle and James McCaig appointed
to fill vacancies. People attending the theatres of the Province
in this year numbered 7,019,232; of this total Calgary took 2,-
437,640 or a daily average of 7,813 and Edmonton 2,335,941 or
an average of 7,484.
It may be added that the Census returns of 1921 showed the
population of Alberta as 588,454 compared with 374,295 in 1911.
A word must be said here as to the death of Milton R. Jennings,
Editor and Managing-Director of the Edmonton Journal, and the
popular tribute accorded on Feb. 22, in the adjournment of the
Legislature, and attendance of the Cabinet and members, at the
funeral of a journalist known and respected throughout Canada.
Government appointments of the year included J. A. Jaffray as
Provincial Librarian in succession to John Blue, who resigned to
become Secretary of the Edmonton Board of Trade, and of J.
Stewart Mayor as a King's Counsel.
The Temperance Question in Alberta. This Province, des-
pite nominal Prohibition, had an extensive sale and use of al-
cohobc liquors, and there was much division of opinion upon the
subject; on Jan. 12, the Alberta Federation of Labour had de-
clared in favour of Government control and the sale of Beer and
light Wines. On Feb. 11 the Hon. J. R. Boyle, K.C., Attorney-
General, had a conference at Edmonton with H. W. Wood and
the Executive of the United Farmers — the latter presenting Res-
olutions of the U. F. A. urging strict enforcement of the Pro-
hibition laws. Mr. Boyle pointed out that it was not a crime
to possess liquor, that the problem was to prevent it being sold
except as a medicine and that the Provincial Police had been at-
tempting to enforce the Liquor law without fear or favour and,
as a result, had far exceeded during 1920, all former records
for convictions: "But when they were not only refused the
active support of the general public but were subjected to in-
discriminate criticism by various organizations, they were na-
turally disheartened." 'H. Greenfield, of Westlock, declared,
as to this, that: "We cannot hope to effectually enforce the
Liquor Act until we get the active moral support of the major-
ity of the people in the Province ; of that I am convinced."
As a practical illustration of difficulties, the Provincial Ap-
peal Court, on Feb. 12, gave a decision in the Bell liquor case in-
830 THE CANADIAN ANNUAL REVIEW
volving $50,000 worth of liquor. The Crown lost its appeal, the
conviction was quashed and the seized liquor reverted back to
its owner. On Mch. 10 the Moderation League of Alberta sent
a strong Deputation to the Government with Dr. C. F. P. Cony-
beare of Lethbridge, as the spokesman and 67,000 names signed
to a Petition urging that the Government take entire control
of the sale of liquor, including light beer and other liquor for
family use, without intervention of medical men or dispensation
through druggists. It was stated that the Liquor Act was not
receiving the moral support and sympathy of the great mass of
the people and, therefore, could not be enforced in its present
state. The Hon. Mr. Stewart admitted that the Government
had found enforcement most difficult, and it appeared that
neither the Prohibition organizations nor the Moderation
League were satisfied. There would be legislation at the next
Session.
In the Legislature on Mch. 8, Hon. Mr. Boyle gave a re-
turn of the net revenue derived by the Government from its
sale of liquor, handled in vendors' stores, as being $500,000 in
1919 and $1,596,204 in 1920, with, in the latter case, an offset in
expenditure of $1,405,510 used for the administration of Justice.
On Apr. 16, Mr. Boyle made a fuller statement including records
showing that Alberta was second only to Ontario in con-
victions under the Liquor law, with 3,480 as against a total
of 3,986 in Ontario, where there was a population five times
greater. The Minister stated that the wholesale houses had
imported liquor into the Province to the extent of $7,166,054 and
were holding in stock $2,195,769, while the exports totalled $4,-
970,285 and the profits were, approximately, $2,485,142. He es-
timated that Alberta purchased as much as was shipped out
through the warehouses, in 1920, and this would add another
$2,485,142 in approximate profits. On their turnover, the Gov-
ernment vendors returned a profit to the Province of $811,389
while the profits made by the 250 druggists in the Province to-
talled $696,074 and the 504 doctors in the Province had issued
531,168 prescriptions for liquor at, say, $2.00 each or a profit
of $1,062,336. Added to these totals Mr. Boyle estimated a prof-
it made by 1,779 bootleggers of $1,779,000 and a profit by the
estimated 1,140 illicit stills of 1,140,000— a total profit of $10,-
000,000.
These facts — which, no doubt, were more than duplicated
in other Provinces but were not collected in figures for pub-
lic information — were stated by the Attorney-General, in mov-
ing the 2nd reading of his Liquor Act Amendment Bill, and were
adduced to prove the difficulties of enforcement. Mr. Boyle
pointed out that, unlike the infraction of other laws such as
those against burglary, assault, murder and similar crimes, the
purchaser of a bottle of whiskey did not regard the breaking of
the law as a personal offence or injury to himself, but rather in
the nature of a favour in fact ; instead of obtaining aid from his
LAST DAYS OF THE STEWART GOVERNMENT 83 1
neighbors in apprehending the offender, no notice would be
given to the Police and no one would lay definite information
or charges. Therefore, it was impossible to adequately enforce
the Liquor Prohibition Law without a system of espionage, and
what was true in Alberta in this respect was applicable all over
the Dominion. In Alberta public opinion did not help the Police
as they would like and the Minister gave various illustrations
of this fact and of the difficulty of proving charges. The con-
victions obtained by the Provincial Police in 1920 included two
Chiefs of Police who were retained in office by the Councils in
spite of the conviction ; also one Mayor of a town who was con-
victed for bootlegging.
As to the new Amendments, Mr. Boyle stated that they were
designed to tighten up the law all along the line. Penalties were
being heavily increased. Drug stores were to be more closely re-
stricted. The former law only provided fines for infractions of
the law and, after a few fines had been paid, druggists had con-
ceived the idea of having the liquor business handled by a clerk
— old bartenders being engaged in some cases. The new Act
provided that where any person was found guilty of violation
in a drug store, then the store itself would be prohibited from
filling liquor prescriptions for six months as to a first offence
and one year for the second. In order to prevent men whose
premises had been put under the ban establishing new premises
under a. new name, the Act provided that any new drug store
must be in business six months before being granted the right
to handle liquor. The minimum penalty was $400 and the max-
imum $1,000. The number of medical prescriptions was to be
limited to 100 instead of 150 and to 12 ounces in quantity.
Dr. G. D. Stanley of the Opposition said he considered the
legislation in force at this time as good as any in Canada or else-
where in the world. On the whole the legislation was excellent
and the difficulties were those of enforcement. Administration,
he stated, should be placed under a Commission ; druggists should
be excluded as privileged persons and Government vendors
should handle the liquor distribution; doctors should be
placed under permits Mr. Premier Stewart announced
that the Government was strongly of the opinion that the present
Liquor Act, through its abolition of the regular sale in bar-rooms
of liquor for beverage purposes, had been, perhaps, the most im-
portant legislation in the interests of social reform passed in
the Province. The sale of liquor for medicinal purposes had
given more or less opportunity for violation of the spirit, if not
the letter of the law, yet with all its weaknesses, there could be
no question that the Act was a decided improvement upon the
old License laws: "The Government does not propose to re-
peal the present law and legalize the sale of liquor for beverage
purposes upon the request of petitions as presented.
In the Supreme Court at Ottawa the test case of the Gold
Seal, Ltd., vs. the Dominion Express Co., was heard in May,
832 THE CANADIAN ANNUAL REVIEW
with H. H. Parlee, K.C., representing the Alberta Government
and A. A. McGillivray, Calgary, the Company. The Company
claimed that under the B. N. A. Act any legislation tending to
forbid the Company shipping liquor from its Vancouver ware-
houses through the Dominion Express Co. to Calgary, was in-
terference with free and unobstructed inter-Provincial trade.
After prolonged consideration of the case, and a re-argument in
respect to recent legislation, the appeal of Gold Seal, Ltd., was
dismissed in a judgment issued by the Supreme Court on Oct.
18 — Mr. Justice Idington dissenting. The costs of the appellant
throughout were ordered to be paid by the Dominion Express
Co. During the Election campaign in July the question of
a Government closing of the Liquor Warehouses was raised in
Calgary and a legal opinion received from H. H. Parlee and S.
B. Woods, K.C., that : "If bonded warehouses exist in the Prov-
ince, the Attorney-General has no power to prevent them or
close them up; this is a matter entirely under the control of
the Dominion authorities ."
On Nov. 9 a Delegation from the Alberta Medical Associa-
tion waited on the new Government and asked for a reduction
in the number of prescriptions allowed and Government co-op-
eration in dealing with members of the Association who should
break the law ; Hon. J. E. Brownlee, Attorney-General, intimated
probable changes in the law along the lines suggested. At Drum-
heller (Nov. 14) 9 offenders against the Act were fined a total
of $1,500; on Nov. 17, Mr. Brownlee was asked by a delegation
from the Alberta Pharmaceutical Association to release drug-
gists from all dispensation of liquors ; on the same day a Brewers'
delegation asked that the Liquor Act be altered to allow the
sale of beer and light wines along the lines of Quebec legislation ;
both organizations were informed that legislation was being
considered by the Government. At a Convention of the Social
Service Council in Edmonton on Nov. 30, the Judiciary of Can-
ada was attacked by Secretary H. H. Hull for what he called
their "apparently biased decisions" on liquor cases ; he suggested
impeachment proceedings and removal from their high offices
and demanded an investigation into the decisions of Hon. M.
S. McCarthy of the Alberta Bench. There were other strong
statements made. By an almost unanimous vote, the G. W. V.
A. of Alberta, on Dec. 16, passed a Resolution declaring that
existing conditions were "most unsatisfactory and detrimental
to good law and order" and asking for a Plebiscite upon the
question: "Are you in favour of the sale of beer of an alcoholic
strength of 3^2 per cent, by weight?"
Session of the Legislature in 1921. The 4th Legislature of
Alberta met in its 4th Session on Feb. 15, and was opened by
His Honour, Dr. R. G. Brett, with a Speech from the Throne
which expressed regret at the death of the Rt. Hon. A. L. Sif-
ton, for many vears Premier of the Province, and of Hon. A. G.
MacKay, the late Minister of Health and Municipal Affairs;
LAST DAYS OF THE STEWART GOVERNMENT 833
referied to the Government's plans for (1) a thorough revision
of the curriculum of Elementary schools in keeping with the
best modern educational practice and suited to the varying
needs of Alberta children, (2) for increasing the efficiency of
the rural schools and (3) for providing increased opportunity
for High School education in rural districts; mentioned the
strong financial position of Alberta as demonstrated in the suc-
cess of recent Loan flotations, and by popular investments in
the Alberta Savings Certificates; stated that the expenditures
had increased but that revenues continued buoyant with the
Province able to meet all legitimate public requirements; an-
nounced the Government's intention to establish a permanent
Home for the Feeble-minded and that three new Schools of Ag-
riculture— at Raymond, Gleichen and Youngstown — had been
completed and equipped ; referred to the progress in construction
of public highways, extension of the Telephone System, and
transfer of the Edmonton Dunvegan and B. C. Railway to the
C. P. R. ; mentioned the Government's policy of support to Re-
search work and its agreement with the University of Alberta
for the carrying on of Specialist work in various classes of re-
search— especially Industrial.
The House, at this time, consisted of 58 members with Hon.
C. S. Pingle as Speaker and the Government had 34 Liberal
supporters, while the 2 Non-Partisan members, 1 United Farmer
and some Independents gave it a fairly assured support against
the Conservatives who constituted the regular Opposition and
who were led, as to 10 of the members, by A. F. Ewing, K.C., of
Edmonton; another group of independent Conservatives com-
posed of George Hoadley, Okotoks, Dr. G. D. Stanley of High
River, Brig.-Gen. J. S. Stewart, D.S.O., of Lethbridge, and three
or four others would accept no definite leadership and acted as
Independents. The Address was moved by George Mills, Atha-
basca, and F. S. Leffingwell, of Warner ; while the House gave a
special greeting to Mrs. Harvey Price, who had been elected as
Miss Roberta MacAdams— the first case of a member changing
her name in this manner. The Address was passed without dis-
cussion— a rather unusual incident. The Session which follow-
ed was an arduous one, with 96 Bills presented and considered in
nine weeks of time ; the Elections were looming into view and
members were anxious as to public opinion; the debates on Nat-
ural Resources and the Budget were long and weighty.
The legislation included the important Lethbridge Northern
Irrigation measure, which was presented after prolonged and
doubtful consideration and cautious investigation by the Gov-
ernment. The Bill was wide in scope and provided for a full
Provincial guarantee of Debentures for Irrigation schemes,
under special conditions, and receiving the endorsation of Gov-
ernment engineers. The Legislature gave unanimous approval
to the policy and sanctioned a Bill to assist the Lethbridge
Northern District by a guarantee of bonds to the extent of $5,-
834 THE CANADIAN ANNUAL REVIEW
400,000. The Vital Statistics Act was amended to make the
Deputy-Minister of Health, Registrar-General, and to authorize
appointment of a Deputy with specific powers in giving burial
permits and enforcing registration. The Insurance Act was
amended to produce yearly statements as to agents employed;
the Gaols and Prisons Act to regulate the use of money given
prisoners, on leaving, for some specific use; the Venereal Dis-
eases Act to take away the Board of Health right of physical ex-
amination except in the case of persons under arrest or in cus-
tody.
The Savings Certificates Act was amended to permit the
issue of certificates up to $5,000,000 at a rate of interest not to
exceed 5 per cent, per annum and authorizing the Government
to issue Provincial bonds for raising money to redeem Saving
Certificates and to determine the form of such bonds and the
rate of interest payable thereon. An Act was passed giving the
Provincial Board of Health power to make rules and regulations
for the licensing, construction, maintenance, operation and in-
spection of, and provision for, medical attendance at Maternity
Homes with, also, the licensing of midwives. The Nurses Act
was amended' so that every applicant for registration after May
1st, 1921, (a) should have received at least three years' training
in medical, surgical and obstetrical work at a general hospital
or hospitals recognized by the Senate of the University of Al-
berta ; (b) should have passed the qualifying examination re-
quired by the Act and (c) have paid the fees of $5.00. The Ag-
ricultural Societies Act was changed so that a new Society
could not be formed unless its chief place of business was 25
miles from that of any existing Society with payments of grants
amended so as to give to each Society of over 100 paid-up mem-
bers 50 cents per member up to 200 members; to each Society
holding an exhibition the grant was 60 per cent, of the amount
actually paid out for prizes, but not exceeding $3,000, with a
grading of the grant in various other connections.
The Irrigation Districts Act of 1920 was amended to enact
that Trustees must be British subjects ; that any amount bor-
rowed should be paid out of the Irrigation rates for the year
and should, after payment of the amount falling due to De-
benture holders, be first charge thereon; that any temporary
loan could be guaranteed by the Government without any fur-
ther authority than was provided by the Act; that proceeds of
the sale of Debentures could be deposited with the Provincial
Treasurer and invested in Provincial securities ; that the Irri-
gation rate should be imposed upon each parcel of land within
the District in respect of each acre therein to be irrigated as
shown by the last revised Assessment roll for the District.
The Act respecting Drainage Districts was an elaborate law in
165 sections. Its provisions, generally, were similar to those
of the Irrigation Districts Act, the chief difference being that
the Irrigation rates were collected by the District and Drainage
rates by the municipalities. A District could be formed on a
LAST DAYS OF THE STEWART GOVERNMENT g 835
petition to the Minister, in a given form,signed by the registered
owners of at least one-half of the proposed area to be included
and accompanied by a sum, or bond, sufficient to cover prelim-
inary expenses. After investigation, the Minister would take
a vote as to formation and for the election of a Board of three
Trustees who must be voters of the District, 21 years of age
and British subjects. A Drainage Council would then be ap-
pointed by the Government with advisory powers as to assess-
ments, contracts and the issue of Debentures.
Amendments to the Supplementary Revenue Act assigned
certain special powers to the Assessor and enacted that if the
total equalized assessment as fixed by the Board, differed from
that fixed by the Assessor, the difference should be distributed
by a pro rata raising or lowering of the assessment of the land
in question. The Minister was given authority to compromise
arrears of taxes on lands, which had been sub-divided, whether
the plan was cancelled or not. The Wild Lands Act was amend-
ed as to exemptions and the authority of Municipalities to levy
and collect taxes on local land. An Act Respecting the Taxation
of Land for Educational purposes, enacted that all land not ex-
empt should be annually taxed three mills on the dollar of its
assessed value ; the tax or. any parcel containing at least one acre
in any Subdivision was to be at least two dollars ; the tax in re-
soect of any parcel of land containing less than one acre in any
Subdivisioin was to be at least 25 cents ; every occupant of land
exempt from taxation would be annually taxed three mills in the
dollar of the assessed value of the land occupied by him while
every occupant under grazing lease or permit was to be taxed
1^2 cents per acre of the land so held.
Another measure provided for the compulsory maintenance
of children up to 16 and poor persons. The husband, wife, father,
mother and child of every oW, blind, lame, mentally deficient or
impotent person, or of any other poor person who was not able
to work, was to provide maintenance including food, clothing,
medical aid and lodging for such person. The father and the
mother of every child under the age of 16 must provide mainten-
ance for such child. The Government was authorized to raise,
by means of Loan, the sum of $7,500,000— $4,255,000 for exten-
sion of Telephone service and $3,000,000 for the Public service.
The Municipal Hospitals Act was amended to give the Minister
of Health power to appoint and pay Nurses ; the taxes payable
in Hospital Districts and certain Debenture rights were more
clearly defined ; the Hospital Ordinance was, also, amended in
a number of details.
The Reclamation Act was amended and the consent of two-
thirds of the owners residing on lands to be benefitted was done
away with in respect to Reclamation work initiated by the Prov-
ince ; but each private owner was made chargeable as to origin-
al costs and costs of maintenance in respect to each parcel in
proportion to the estimated benefit as shown on the Assessment
836 THE CANADIAN ANNUAL REVIEW
roll. Acts were passed confirming the Agreements as to the
E. D. and B. C. and the A. and G. W. Railways. Licenses, by an-
other amended Act, were increased upon Shows, Circuses, etc.,
to range from $10 to $250 according to the number of cars
used in transporting them from place to place. The Act
respecting liens on goods and chattels enacted that every
person should have a particular lien for the payment of
his debt in respect to a chattel upon which he had expended his
money, labour, or skill at the request of the owner; so with
every warehouseman upon property stored with him, for his
proper charges ; every wharfinger on the goods entrusted to his
keeping, for his lawful charges, and so on. Under the Sale of
Public Lands Act, the Minister in charge was authorized to sell
by public auction at such upset price or reserve bid, and on such
terms and conditions, as were fixed by Order-in-Council, any
public lands and to give receipts, agreements of sale and trans-
fers therefor. The Jury Act was amended in various details —
one of which made a summons upon a woman to act optional up-
on her willingness to do so ; the Game Act, also, was changed in
various details, as was the Municipal District Seed Grain Act;
an Act was passed to aid by Government guarantee the De-
bentures of 4 Drainage Districts to a total of $587,000; the
Amusement Tax Act was amended as to rate of taxes on ad-
mission to theatres, etc. ; the Village Act and the Town Act were
variously amended, as was the Municipal Districts Act.
A new measure provided for the legal registration of names
for Homes. The Co-operative Act was amended so that 20 per
cent, of the stock subscribed must be paid up each year and em-
powering the Government to guarantee to the full amount any
security, obligation, or financial undertaking given or taken by a
Co-operative Society after May 21st, 1921. The Tax Recovery
Act was amended as to summer resort villages and the selling
of land acquired by a municipality under Tax sales ; the Lacombe
and North- Western Railway Co. Act was extended to permit of
125 miles of further construction with a Government loan of
$150,000; the Live-Stock Encouragement Act was amended so
that the Department of Agriculture should have a charge upon
the real and personal property, within the Province, of every
purchaser, as security for the payment of any promissory note,
whensoever given by the Association of which he was a mem-
ber, and the Minister was given power to take possession of any
such property and to sell the same under specified conditions.
Amendments to the Municipal Hail Insurance Act enacted
that, unless specially exempted, all within the Hail Insurance
District should be insured against loss or damage by hail and be
liable to assessment; representatives were to receive $6.00 per
day instead of $4.00, and the Board was given power to re-
insure; every owner or occupant must, before the 15th of June,
send in a crop report on a prescribed form. The School Ordin-
ance was amended to provide for the consolidation of two or
more rural school districts and other districts, for the purpose
LAST DAYS OF THE STEWART GOVERNMENT 837
of establishing and maintaining a School for the education of
pupils who had completed Grade VII or Grade VIII of the Pub-
lic School course— the school to be known as a "Secondary Con-
solidated School." The measure also provided for the appoint-
ment of a Board of Conciliation to enquire into and investigate
any disagreement or dispute arising between teacher or teachers
and any Board of Trustees— where the dispute related to the
proper carrying out of the contracts entered into between the
Board and such teacher or teachers.
The School Assessment Ordinance was, also, amended to
provide for the support of new rural High Schools, by author-
izing the Board of Trustees to cause to be apportioned annually
among the school districts, included in such consolidated district,
the amount required for school purposes during the current
year. The School Grants Act was amended by providing an ad-
ditional grant of 50 cents per day to each rural district operating
only one room if instruction was given therein in grades above
the 8th by the written authority of the Inspector of Schools.
The Government Telephone Act was amended to provide that
the accumulated surplus of all years prior to 1921, and of each
year thereafter; should be transferred to a Reserve Trust Fund
and deficits for any year be deducted from the surplus of any
succeeding year before such transfer was made. Another Bill
authorized the Government to raise by loan $600,000 to extend
the Central Canada Railway westward from Peace River a dis-
tance of 25 miles.
This mass of legislation was involved in 72 new Acts, of
which 48 were amending Bills and 24 entirely new; it was, es-
sentially a working Session, though the Natural Resources
matter had a prolonged discussion. This began in a Resolution
moved by A. F. Ewing and J. H. W. S. Kemmis, on Feb. 22, de-
claring the people of Alberta to be entitled to their lands, mines
and other natural resurces now held by the Dominion; protest-
ing against these resources being "unjustly withheld to be ex-
ploited by any political party at Ottawa"; urging constant
action for the surrender of this public domain of which the Prov-
ince was "unfairly and unjustly deprived." The matter was de-
bated until Mch. 7 and strong exception was taken to the charge
of exploitation directed against Ottawa and to that of unfair-
ness and injustice. Hon. C. R. Mitchell and Hon. J. R. Boyle
of the Government moved an amendment expressing satisfaction
at the efforts of the Alberta and other Western Governments in
this connection and at the definite promise, said to have been
given by the Dominion Premier (Mr. Meighen), regarding its
settlement. J. G. Turgeon (Lib.) and James Weir (Non-Par-
tisan) moved a further amendment to this which was finally
passed by 33 to 12 and made the Resolution read as follows :
This House declares that the people of Alberta, to the same extent
and in the same manner as the people in the other Provinces, are en-
titled to the lands, mines, minerals and other resources within the area,
and to enjoy the full benefit thereof, as well as to administer the same
838 THE CANADIAN ANNUAL REVIEW
for the advantage of its people; and emphatically protests against our
Natural Resources being withheld. This House urges that constant and
continued application to, and negotiations with, the Dominion Govern-
ment be made for the surrender to the Province of the Public Domain
within its boundaries. This House further declares that the Province is
entitled to the immediate transfer of our Natural Resources on fair and
equitable terms, having regard to the alienation of lands for Federal
purposes, and taking into consideration subsidies paid in lieu of lands.
This House is pleased to note that the Prime Minister of Canada is en-
deavouring to effect a settlement of this question at the present time.
Incidents of the Session included the withdrawal of a Bill
by Hon. Mr. Boyle which proposed the creation of a Minimum
Wage for women — because of opposition expressed by Alex.
Ross (Lab.), who wanted it to define the hours of labour; Mrs.
Roberta Price, who wanted it to put upon the Board a repre-
sentative of the future Women's Labour Unions ; W. M. David-
son (Lib.) who thought it did not meet existing conditions.
There was, later in the Session, the success of Mr. Boyle in carry-
ing an amendment to the Factories Act under which a per-
manent Minimum Wage Board for Women could be established
as an official continuation of the Enquiry Commission appointed
in 1920; the statement by Hon. Mr. Mitchell, on Apr. 2nd, that
there was $3,000,000 inve'sted in Savings Certificates, that there
were always more deposits than withdrawals, that at 5 per cent,
it provided the cheapest public money available, and that he
hoped that these certificates would be converted into 10-year
gold bonds of the Province ; the keen discussion over the Im-
perial Oil Company's subsidiary, the Imperial Pipe-Line Co.,
which asked power to construct pipe-lines for the transmission
of oil, gas, etc., through the Province — the outside opposition of
the U. F. A. as expressed by Messrs. Wood and Greenfield, and
the withdrawal (Apr. 18) of the Bill as the result of proposed
restrictions.
W. R. Rae, who fathered the Bill, stated, on Apr. 18, that
the Imperial Oil Co. only asked for privileges which should be
accorded to any producer of oil — the right, at its own expense,
to transport crude oil, when discovered, in the most convenient
and economical way, to a refinery to be made into useful pro-
ducts— with the further assertion that : "The Company has ex-
pended $3,000,000 prospecting and drilling in Alberta, Saskat-
chewan, and the N. W. Territories, and has asked the Legislature
for permission to construct pipe-lines at its own expense and
has gone so far as to agree that these lines shall be common
carriers of oil to the extent that their capacity is not used by the
Company for its own products." There was provision, by
amendment to the Elections Act, that the next Legislature
should consist of 61 members with 5 each in Calgary and Ed-
monton, elected at large, and 2 in Medicine Hat. The Legislature
was ororogued on Apr. 19th and, following this, the Liberal
members presented Mr. Premier Stewart with a handsome gold
watch and chain, as a token of their appreciation for the capable
and considerate manner in which he had led the House during
a trying Session.
FINANCIAL AND EDUCATIONAL INTERESTS OF ALBERTA 839
Provincial finances in 1921 were not exactly
finan'C Al comfortable under the set-backs of the year, but,
berta; Edii- desPite these incidents of a difficult period, the 90,-
cational In- farmers of Alberta had a record production
terects and which warranted faith and optimism. Over a seven-
Progrc... year period, they had produced 310,702,446 bushels
of Wheat valued at $460,973,560, and 569,250,585 of
Oats worth $274,038,773 ; the 12,000,000 acres under cultivation
was only a small portion of the 100,000,000 available ; the aver-
age production per farm per annum was $2,500 and, in 1921, the
farmers of the Province bought over $2,000,000 of Alberta bonds
and invested $1,500,000 in Provincial Savings certificates; the
average mining product was $30,000,000 a year and over 4 times
what it was a decade before. The Assessable property within
the Province was, at this time, $725,886,555.
Early in the year the Provincial Treasurer, Hon. C. R. Mit-
chell, had sold a $2,000,000 issue of 6 per cent., 15-year bonds,
payable in Canada, at 96 42, for Telephone construction purposes ;
Lethbridge Irrigation bonds were disposed of during the year
to a total of $4,400,000 ; in September an issue of $2,225,000, 20-
year, 6 per cent, bonds were sold in Canada with 25 Bond houses
represented in the tenders; at the same time, another issue of
$2,100,000, 6 per cent., 10-year gold bonds was disposed of in
New York. Mr. Mitchell was cautious in his outlook, and at
the January Convention of the U. F. A. expressed frank disap-
proval of the Government Savings Bank idea ; the Alberta Gov-
ernment had concluded not to open up agencies as in Manitoba
because the cost of doing so would be, relatively, too heavy and
the amount of money collected inadequate, he believed, to supply
the desired funds. As to the Rural Credit Societies in Alberta,
the Government was prepared to assist them when once started
and operated; he hoped, through the aid of the Banks and a
larger Government guarantee, to obtain the necessary funds.
This better guarantee was given and, on Oct. 31, 1921, 77 So-
cieties were in operation with a credit of $270,000.
Mr. Mitchell, in his Budget speech (Mch. 11) was able to
state that the Province could carry on for another year on the
existing basis of taxation; that the calendar year 1920 showed
a Surplus of $496,420 on ordinary revenue and expenditure ; that
the Receipts were $10,919,776 and the Expenditures $10,423,356;
that $2,508,465 had been received in collections of municipal
taxes ; that the Telephone business, on ordinary account, had an
income of $1,913,913 and an expenditure of $1,879,303, with a
net surplus of $34,610; that the Receipts from Government
Liquor business were $3,283,150 and the proportion received by
the Provincial Treasurer $633,000; that the Revenue from all
sources, including capital funds, snowed a total of $15,881,106
with a total expenditure of $15,358,056. The general Income
account included Dominion Subsidy of $1,621,075 and from
School Lands $692,028; Savings Certificates $2,823,150, Tempor-
840 THE CANADIAN ANNUAL REVIEW
ary loans $500,000, and sale of Debentures $3,279,833 ; Succes-
sion Duties $273,179 and Taxes on Insurance and Corporations
$403,204; Motor Vehicles Act $656,556 with Mine Owners' and
Railway taxes $391,831 ; Court fines and Legal fees and Land
titles fees, $1,095,302; Liquor Vendors' Trust Account $501,476
and Department of Agriculture $1,415,617 — including $1,239,253
as Sale of Hay under the Drought Relief Act; Municipal taxa-
tion $2,516,368. The Telephone Department Receipts were $7,-
796,398, which included $1,832,887 from Fees and $6,026,585 from
Loans.
The chief items of Expenditure were $1,568,106 on Public
Debt and $811,568 on government and legislation; $1,405,510 on
Administration of Justice and $1,608,231 on Public Works; $1,-
785,163 on Education and $544,256 on Agriculture; $367,104 on
Public Health and $1,879,303 on Telephones. For 1921 Mr. Mit-
chell estimated the ordinary Revenue at $12,778,879 and the
current Expenditure at $12,736,294, or a Surplus of $42,585 with
an increase in both respects of $2,000,000. A reference was made
to Irrigation conditions with the statement that if the Province
had possession of its natural resources it might have considered
a plan to help the farmers who could not be helped by Drainage,
or Irrigation projects, so as to "arrange for their removal to new
locations in vast districts not now occupied, where crop failures
seldom occur, and thus permit the dry areas to revert to the use
which nature intended — viz., live-stock raising." The actual
Receipts for 1921 were only $11,086,936, while the Expenditures
were $13,109,303; at the same time the gross Public Debt had
increased by $17,020,356.* The year had been a depressing one
in many respects and not the least of Government difficulties
was this one of finance. On Mch. 31, after three weeks of dis-
cussion, the Budget was finally disposed of. It may be added
that the gross Bonded Debt on Dec. 31, 1920, was $41,989,900,
less Sinking funds of $1,231.159, and that the Assets were stated
at $149,248,246, including Telephone plant $15,584,349; Public
buildings, roads and bridges, $17,700,000; Deposits, etc., with
Dominion Government $21,000,000; and estimated value of un-
sold School lands $81,967,000.
Meantime, Municipal conditions were in an unusually diffi-
cult position ; as in Saskatchewan, some of the cities and towns
were having trouble with their obligations and a few, like Atha-
basca, defaulted in payment. Government legislation during the
Session had provided for the appointment of an Administrator to
look after the affairs of any municipality defaulting in its obli-
gations, or with the local Council refusing to carry on ; the Gov-
ernment took a different view from that of Saskatchewan and
believed that the Province at large had a moral obligation in
respect to the Bond sales of municipalities and school districts.
The Government was authorized to expend, through their Ad-
*Note.— Public Accounts for 1921 presented by the Premier (Mr. Greenfield) to
House on Feb. 28, 1922.
FINANCIAL AND EDUCATIONAL INTERESTS OF ALBERTA 841
ministrator, a yearly sum of $20,000 in discharge of special muni-
cipal liabilities. Some years before this, the Legislature had
adopted the definite policy of preventing default in School
bonds, and these securities remained strong on the market as a
result. During 1921 many municipalities awakened to the fact
that they had spent more for improvements than they could
afford to pay; they had expected more development than actual-
ly occurred and had spent more money to accommodate this de-
velopment than the coming of the War made desirable.
In this connection, the Province was making a strong effort
to meet its Municipal tax problems. An Assessment Equiliza-
tion Board, appointed in 1920, with J. H. Lamb as Chairman and
A. J. H. Donahoe, W. T. Jackman, W. D. Spence, and S. B. Ferris
as members, had been, for nearly a year, closely studying the
conditions; its Report, early in 1921, urged drastic changes in
the assessments and, especially, as to urban municipalities — the
Government having, meanwhile, taken steps to divide municipal
property into urban and rural zones. The Report stated that the
Province, with its 255,288 square miles, had an acreage of 163,-
384,000 and a surveyed portion, at the end of 1919, of 85,147,816
acres. The average value of land assessed as acreage on the
equalized basis fixed by the Board would be $15.49 an acre. It
was pointed out that if this were capitalized at 8 per cent., it
would require, from every acre of assessable land in the Prov-
ince, an average possible income of $1.24 per acre, or $199.40 a
quarter-section of 160 acres. The 120 villages of the Province
were said to have a total locally-assessed land value of $7,415,515
— this being reduced by the Board to an equalized assessment of
$4,964,877. The cities it was proposed to revise as follows:
City
Calgary
Total local
Assessed Value
$52,576,694
Total equalized
Assessed Value
$45,000,000
Edmonton
61 891 965
45,000,000
Lethbridge
6,463,185
5,100.000
Medicine Hat-
9,213,395
5,300,000
Red Deer
2,237,060
735,000
Wetaskiwin
1,207,922
720,000
Financial incidents at the close of the year, and under the
new Government, included a Delegation from the Mortgage
organizations, interested in the West, urging more care in safe-
guarding investments in Mortgage loans ; protesting against
any interference with Mortgage contracts such as was said to
be involved in liens on farms for seed grain advances, noxious
weeds, telephones, etc., or with a mortgagor's right to sue ; pro-
testing, also, against the existing system of processes, which
were described as too expensive. This was followed by arrange-
ments for a conference as to possible changes in the law. There
was the calling of a temporary halt in the advances under the
Act to assist farmers in buying Live-stock with a present total
of $1,700,000 re-payable in 1922; the carrying on of re-funding
operations in London designed to take advantage of the current
Exchange conditions with $700,000 of 20-year, 6 per cent, bonds
842 THE CANADIAN ANNUAL REVIEW
offered in Detroit to provide the necessary funds; the declara-
tion by Mr. Premier Greenfield, on Dec. 14, that he did not be-
lieve it possible for the Provincial Government to bring into
effect, at present, or with beneficial results, the Alberta Farm
Loan Act passed by the Legislature in 1917 and not yet brought
into force; the Government's decision to have a complete audit
of the books and accounts of the Province which would cover
all Departments and branches of the Service — with two well-
known firms engaged to do the work. A bright feature in 1921
conditions was the continued purchase by Alberta farmers of
the Savings Certificates issued by the Government. Since it
was inaugurated, in 1917, the policy had been carefully and well
operated by W. V. Newson, Deputy Provincial Treasurer, with
the following results :
Sales of Withdrawal
Period Certificates of Certificates
8 months, 1917 . $ 403,638.54 $ 27,440.19
12 months, 1918 1,162,614.43 518,820.36
12 months, 1919 2,012,733.14 1,331,704.05
12 months, 1920 2,823,150.93 1,656,410.55
4 months, 1921 1,855,139.29 1,123,495.11
Totals $8,257,276.33 $4,657,870.26
Educational Interests of Alberta. The Hon. George P.
Smith, Minister of Education since 1917, in his 1920 Report, is-
sued on Jan. 30, 1921, reviewed recent conditions and the value
of certain policies initiated a couple of years before : "These
policies have had to do with several matters of fundamental im-
portance— such as the improvement in the standards of qualifi-
cations of teachers ; the increase in the supply of teachers ; the
introduction of new types of school organization for rural dis-
tricts; provision of High School opportunity for rural children;
special efforts amongst non-English-speaking people. The
carrying out of these policies involved the erection of new build-
ings and the providing of additional accommodation in many
ways. The extraordinary cost of labour and materials has made
the effort a very trying one, but in spite of unfavourable condi-
tions, substantial progress has been made and the new policies
can now be said to be firmly established."
The Minister stated that training of teachers for 3rd class
certificates had been definitely abandoned and that no student
could enter with lower than a grade XI High School standing;
that to make this standard possible Government loans to cover
cost of Normal School training were necessary and the desired
result had been attained — in reducing permits by one-third ; that
the shortage in teachers, running as high as 1,600, had apparent-
ly passed with, at the close of the School-year, 4,300 school-
rooms all supplied and only 304 Permits in a six-month period;
that much good had followed the elimination of fees for non-
resident children attending existing High Schools, and by gen-
erous grants to the senior rooms of two-room schools and con-
solidated schools ; that, during the past two years, 60 Teachers'
residences or houses had been built and were proving of great
FINANCIAL AND EDUCATIONAL INTERESTS OF ALBERTA 843
value ; that every school was now under inspection and most of
them twice a year ; that complete plans were in hand for securing
a thorough revision of the Course of Studies for the elementary
schools— including a course in Citizenship; that the Depart-
ment had received co-operation from all classes of people and
organizations.
J. T. Ross, Deputy-Minister, submitted an elaborate Report
upon all phases of Education and declared that one of the most
noticeable features during the year was the demand for a better
and more advanced type of rural school: "This demand is as-
sociated with a similar demand for a more highly-trained teacher
with maturity of scholarship and experience who, instead of
being a transient, will be a permanent resident of the commun-
ity." Out of this feeling and need had grown the rural High
School policy. The official Statistics of 1920 included an estimate
of 1,800 square miles organized into School Districts during the
year with a total of 3,553 compared with 602 in 1906 ; the forma-
tion of 4 Consolidated Schools with a total of 67 and the declara-
tion that tkey were a great improvement on the ordinary rural
school; the enrollment of 121,567 pupils (1919) compared with
24,254 in 1905, and the engagement of 4,902 teachers compared
with 924; Government grants of $1,018,068 in 1920 as against
$170,315 in 1906 and payment of $3,560,319 in Teachers' salaries
compared with $386,107.
• The Schools of Agriculture and the Summer School for
Teachers, with 370 in attendance ; the Educational Conventions
at 12 centres during the year ; the Edmonton Normal School with
116 in attendance, all helped to create the efficiency of the sys-
tem. E. W. Coffin, Principal of the Normal School, Calgary,
reported an attendance of 314 and many important activities;
the Normal at Camrose had 18 students. The Chief Attendance
Officer stated that, during 1919, 273 preliminary letters were
written to parents and guardians and 5,687 warning notices
sent with 300 prosecutions and 290 convictions. G. W. Gorman,
Chief Inspector, reported at great length as to general condi-
tions ; the School Libraries were stated to number 2,798 in as
many Districts and, in 1920, 2,235 school districts received con-
signments of books while W. H. Noble, Manager of this Branch,
distributed, during the year, 831 Union Jacks to Schools which
did not possess a flag ar:d, in 7 years, had distributed 624,859
volumes amongst the Libraries specified above, out of his aver-
age yearly grant of $39,527; the distribution of Free Readers
totalled, during the year, 95,806.
D. A. Campbell, Director of Technical Education, stated that
Federal aid was given to promote industrial, technical, and com-
mercial education and amounted to 50 per cent, of the expendi-
ture made by each of the Provinces for such purposes. The total
amount received by Alberta during the calendar year 1920, when
payments were first made by the Dominion Government, was
$28,668. For 1920-21 $47,050 was available, with $13,000 car-
844 THE CANADIAN ANNUAL REVIEW
ried forward from 1919-20. The newly-organized Provincial In-
stitute of Technology and Art at Calgary had an enrollment, on
Jan. 15, 1921, of 446 in all Courses, which included railway, archi-
tectural and mechanical drafting; telegraphy; motor and tractor
engineering; steam and mining engineering; applied mathe-
matics and machine shop practice. The number of Pupils in
Alberta Schools (1920) was 135,750 and the total attendance
75,864 in graded schools and 59,886 in ungraded schools; the
number of School Districts was 3,154 on Dec. 31, 1920 — an in-
crease of 92 in the year; the schools in operation totalled 2,826
and the Departments 4,289; the total Receipts from all sources
for Education was $11,664,545, and the balance on hand (Dec.
31st) $1,020,216; the Assets of all School Districts were $23,-
745,614 and the Debenture Debt $10,476,486.
Educational incidents of 1921 included a Deputation to
the Minister (Feb. 18) representing 25 Councils and Boards
asking that Provincial grants for High Schools be increased to
approximately 50 per cent, of the cost of maintenance, and a
speech by Hon. Mr. Smith in the Legislature, on Mch. 16, an-
nouncing a higher grant, generally, to High Schools in the Prov-
ince. He outlined a proposal to establish consolidated secondary
schools and declared that the teacher supply problem in Alberta
had improved 50 per cent, over the same period 12 months be-
fore. Increased financial grants to Schools were described on
Mch. 16, which the Minister summarized as follows: (1) The
regular statutory grants to schools through ordinary growth by,
probably, $125,000; (2) additional aid to weak rural districts
estimated at $100,000; (3) Provincial University increase, $100,-
000; (4) increased encouragement for High School education
$50,000; (5) Edmonton Normal School, full year, $25,000; (6)
Technological Institute in Calgary, $25,000; (7) increased cost
of School Inspection, $35,000; (8) increased cost of Free text-
books $35,000; (9) examinations increase $10,000. The Govern-
ment's expenditure on Education for 1921 was put at $2,500,000,
of which $500,000 went to the University of Alberta. On June
22, with much ceremony, Hon. G. P. Smith, as Minister of Edu-
cation, with the Premier, members of the Cabinet and the Legis-
lature, opened at Calgary the new Provincial Institute of Tech-
nology and Normal School. Then came the Elections and the
retirement of Mr. Smith accompanied, on Nov. 7, by the present-
ation of an artistically designed Address with a Stirling silver
tea service and tray, by a gathering representative of the edu-
cational life of Alberta. His successor, the Hon. Perrin Earle
Baker, B.A., was a graduate of McMaster in Toronto.
An interesting event of the year was the dispute between
the Department of Education and the Alberta Teachers' Associa-
tion. The latter organization, at the close of 1920, had sent out
to the Teachers of the Province, without submission to the De-
partment, a contract form which all were urged to insist upon
in their dealings with School Boards and the Government.
FINANCIAL AND EDUCATIONAL INTERESTS OF ALBERTA 845
Speaking to a Conference of Inspectors and others at Edmonton,
on Jan. 7th following, Mr. Smith said: "I will not be stampeded
into foolish and dangerous steps that are being agitated for by
a handful of radical people. Rather than fix a minimum wage
for teachers of $1,200 a year, I would resign to-morrow, for I
know that this can never be done without immediate and lasting
injury to the teaching profession." At the Provincial Conven-
tion of Public School Trustees in Calgary, on Feb. 2nd, the Min-
ister made a notable speech in which he said that there was no
opposition to any organization of Teachers, as such, but that the
Department, for two years, had submitted to unfair criticism,
attacks, and charges from this Teachers' Alliance — which was
distinct from the Alberta Teachers' Educational Association:
"No one deplores this more than I, because I feel that it is un-
fortunate for the schools, for the children and for the cause of
education, which I have at heart. The teachers are not to blame ;
every day we get letters from teachers complaining of intimida-
tion. It is only a few individuals who want domination, not
recognition, and who want the Department of Education to abdi-
cate and School Boards to follow suit, and who, when they can't
get what they want, go out to make trouble."
On Feb. 15 the Alliance, for the second time, asked the Ed-
monton School Board for permission to send two representatives
to the regular Board meetings and were refused, after a heated
debate ; on Mch. 21 representatives of the Alliance waited on the
Trades and Labour Council and claimed that the High School
teachers of the City had only received a net increase in salary,
over the 1914 schedules, of 3 per cent, and must have increases
totalling $58,000. The Alberta Teachers' Alliance met in Con-
vention on Mch. 28, with H. C. Newlands, of Edmonton, presid-
ing. In his speech, the Chairman claimed that the $1,200 mini-
mum for teachers' salaries was practically in existence to-day,
and was largely due to the efforts of the Teachers' Alliance ; that
the organization had assisted the rural teacher and had a good
record for adjustment of disputes ; that, as teachers, they be-
lieved they were on a wrong scale of remuneration in view of
their training and the importance of their work.
J. W. Barnett, Secretary, stated that the Alliance had car-
ried on, during the year, a campaign of education and propa-
ganda which sought to prove that Educational success was de-
pendent upon higher remuneration for the teachers ; he stated
that the membership was 1,970 or a gain of 207 in the year. Mr.
Newlands was re-elected President, C. H. Peasley, Medicine Hat,
Vice-President, J. W. Barnett, Edmonton, Secretary-Treasurer;
T. E. A. Stanley of Calgary was past President. A Resolution
was approved urging the appointment of a Dominion Minister
of Education with a view to forming a National Educational
policy, and suggesting a Dominion Commission to investigate the
salaries of all teachers in primary and secondary schools. The
Alberta Educational Association met in Edmonton on the 29th,
846 THE CANADIAN ANNUAL REVIEW
with T. E. A. Stanley in the chair. He declared, in his address,
that University education was for the benefit of a few people,
and if the University was to be of any use, the system must be
decentralized; there had been far too much of this in Educa-
tional institutions and the High Schools must be brought within
the reach of all ; if necessary dynamite should be used to throw
out the old method of centralization.
He expressed the strong belief that a language other than
the mother-tongue, should be learned by all pupils; that if it
was worth while to learn another language, such should be done
before the child had lost the "language sense" ; that this other
language should be French, with the Universities looking after
German and Italian. Mr. Newlands also spoke, and the Minister
of Education followed. As to salaries, Mr. Smith stated that if
there was to be any permanent and uniform betterment in the
salary situation, it must be based on larger Government grants ;
that there was no uniformity in the taxes collected from School
Districts; that, during the past three years, there had been an
increase in the Educational budget of half a million each year,
and that this year it was $550,000 more than in 1920. Miss Mary
Crawford, Edmonton, was elected President, H. A. Carr, Calgary,
1st Vice-President, and H. Greenfield, Westlock, 2nd Vice-
President. A Resolution was passed which expressed apprecia-
tion of the valuable work that the Department of Education had
undertaken in the revision of the Public School Course of
Studies.
Following these varied discussions, the Public School Board,
Edmonton, on Apr. 9, received notice from the High School
Teachers' Alliance of the City that the teachers there would
cease work on Apr. 11 as the result of the Board's refusal to
meet their representatives upon salary increases. The Board
at once looked out for other teachers, and on the 12th had 11
engaged, with others obtained as time passed. A meeting of
citizens was held and asked the teachers to return to work ; the
subject was discussed in all kinds of public organizations and
even by the pupils at the schools — one petition of 86 children
stating that they had "no confidence in the new appointees" ; the
School Board offered to appoint a Conference Committee if the
teachers would return to work, but the Alliance preferred arbi-
tration ; on Apr. 24 the strike ended in acceptance of the Con-
ference Committee proposal.
The University of Alberta. This important Provincial institu-
tion was first opened in September. 1908, with 4 professors and 37 stu-
dents, and, by June 30, 1921 had grown to a position of fifth in size
among the Universities of Canada with 5 fully organized Faculties, 122
members on the Staff, and a Student body of 1,106. The llth annual Con-
vocation was held on May 12, and 105 graduate degrees conferred on
students and 7 post-graduate, as well as the Honourary degree of LL. D.
on Sir J. A. M. Aikins, Lieut.-Governor of Manitoba. With the opening
of the College year 1920-21, there were a number of new appointments
and promotions, to Professorships : J. MacG. Smith, B.S.A., Agricultural
FINANCIAL AND EDUCATIONAL INTERESTS OF ALBERTA 847
Engineering; A. W. Downs, M.A., M.D., Physiology and Bio-chemistry; C.
P. Marker, Dairying; R. K. Gordon, M.A., ph.D., English; A. L. Burt, M.A.,
History; S. D. Killam, M.A., Ph.D., Mathematics; C. A. Robb, B. sc., Mech-
anical Engineering; and, in November, Lt.-Col. F. H. Mewburn, O.B.E.,
M.D., LL.D., Surgery.
At the beginning of the Autumn term, the Faculty of Law opened
as an organized department, in accordance with a Provincial enactment
of the preceeding Session, and gave students the opportunity to obtain
the degree of LL.B. in a 3 years' course or the degrees of B.A., LL.B. in a
6 years' course. The 1920 annual Report of the University was submit-
ted to the Government in March by the President, Dr. H. M. Tory and
showed a total expenditure of $777,958, and Revenue of $768,873, with As-
sets of $3,834,166 and Liabilities of $3,550,000 in Debenture issues which
matured in 1924 and 1925. Hon. G. P. Smith, Minister of Education
stated in the House a little later, that the total capital expenditure on
the Institution had been $3,174,000 with maintenance, for its 12 years,
costing the Government $1,745,000. The Department of Extension under
Prof. A. E. Ottewell was an important side of University work in the
Province, and, during the year ending June 30, 1921, 275 Extension Lec-
tures were given, with an aggregate attendance of 32,285 and an average
attendance of 119; exchanges of Travelling Libraries were made 398
times in 224 communities, with an aggregate recorded circulation of
17,320. Besides this 3,572 volumes were circulated from the Open Shelf
or an average of 297 per month, and Visual Instruction was given by
means of Lantern Slides, 1,044 sets being sent out and shown to audiences
of approximately 125,000 people as well as 217 sets of Moving Picture
films, which were shown to about 25,000 people.
During the months of July and August, 1921, the University Equip-
ment was given over for a Teachers' Summer School with 74 registering.
The 3rd Annual University week for Young Farm People was held on
June 8-14, and 164 attended from all parts of the Province with a pro-
gramme made up of agricultural demonstrations, physical education, lec-
tures in citizenship and general subjects. An incident of importance dur-
in the year was the election of the following, on May 30, as Senators
of the University; Dr. R. B. Wells, Edmonton; Dr. Charles E. Smith,
Medicine Hat; W. M. Davidson, M.L.A., Calgary; J. D. O. Mothersill,
Edmonton ; W. Dixon Craig, Edmonton. The University received a num-
ber of Donations and Scholarships at this time, including the Moshier
Memorial Medal in memory of the late Lieut-Col. H. M. Moshier, Pro-
fessor of Physiology in the University, who had been killed in August,
1918, and which was presented by the Volunteer Overseas Medical Of-
ficers' Association of Edmonton; two Scholarships of $150 each — one
from Patrick Burns, of Calgary and the other from an unnamed return-
ed soldier; the Rockefeller Foundation gift, of $25,000, for the School \/
of Medicine ; $12,000, to found a fund to memorialize the work of the
Khaki University and the Y.M.C.A. Overseas, received from the Khaki
University Funds; a collection from the late Rt. Hon. A. L. Sifton,
through the Hon. Charles Stewart, of all the confidential documents re-
ceived by him during the Peace Conference; and $2,000 from Sir James
Aikins. Lieut.-Governor of Manitoba to found a Scholarship in English
language and literature. Other incidents during the year were the
award of the Rhodes Scholarship in Alberta for 1921 to G. V. Ferguson,
and the 4 months' Expedition of a Fossil-hunting party from the Univer-
sity, which obtained 25 prehistoric specimans in more or less complete
condition. Other Educational institutions were the Alberta College
North, under Principal F. S. McCall, B.A., with 1,850 students ; Mount
Royal College, Calgary, with a registration of 460, and Western Canada
College, Calgary, with 170; St. Hilda's Ladies College at Calgary with
75 students and the Westminster Ladies College, Edmonton which in-
augrated a campaign during the year to establish an endowment fund
for the Institution.
848 THE CANADIAN ANNUAL REVIEW
The Elections of 1921 in Alberta turned upon
The Elections two questions — the personal popularity of Charles
and Defeat of Stewart, the Liberal Premier, and the amount of
the Stewart organized action which the U. F. A. represented.
Government;^ go strong was Mr. Stewart, with large sections of
the people, that the Farmers' candidates hardly
attacked his Government, as such, at all, and he was
Formation of
the Green-
the one candidate elected by acclamation. With its
33,000 members and 1,500 local units throughout the Province,
the United Farmers constituted about 25 per cent, of the total
electorate. The Conservatives still had influence in the towns
and cities, but in the rural districts were negligible, and with few
candidates ; the Moderation League, in a Province which voted
against importation of liquor by a very small majority and where
the Attorney-General had the greatest difficulty in enforcing
the law was, also, a factor, with the Prohibitionists chiefly in-
fluential through the Women's vote. It was not a campaign of
leadership except in the case of Mr. Stewart; A. F. Ewing, K.C.,
was the head of a Conservative wing in the House, but he gave
most of his time to his own constituency; neither H. W. Wood
nor Herbert Greenfield of the U. F. A. were candidates. All sec-
tions agreed in demanding control of Natural Resources. The
standing of the different groups in the Legislature when dis-
solution was announced on June 24 — with Nominations on July
11 and Elections on the 18th — was as follows: Government 34;
Conservatives 12; Independents 6; Soldiers 2; Non-Partisan 2;
Labour and U. F. A. one each.
The Policy of the Stewart GoYernment. Mr. Stewart is-
sued a Manifesto as the opening gun of the campaign. His
reason for holding the Election at this time was stated to be
the general belief that it was coming and the consequent un-
settlement of affairs with the fact that Governments were more
and more appealing to the people before their time was quite
up. The Premier then referred to his solution of the Railway
problem in the north. After prolonged negotiations the Ed-
monton and Dunvegan Railway was now being operated under
a satisfactory agreement: "The encouraging prospect for the
development of the great natural resources in the Northland
provides a foundation upon which to build." In view of the
ever-increasing industry of the Province, the Premier promised
another step of progress in administration and during the next
Session a special Department of Labour would be formed to
be headed by a Deputy-Minister.
Mr. Stewart summarized some of the efforts of his Govern-
ment since 1917. In Agricultural matters the Government had
passed the Live Stock Encouragement Act or "Cow Bill," under
which an addition of new herds to many farms had been carried
out, and had established "the finest system of Agricultural
Schools in Canada"; in Education the Government had increas-
ed its grants from $1,308,000 to $2,570,000 and had attacked the
serious problem of teacher shortage with success; in Public
THE ELECTIONS; DEFEAT OF THE STEWART GOVERNMENT 849
Health matters the Government had done its best to meet the
persistent demands from all sections of the Province for health
inspection of schools, for a system of public health nursing, for
the direction of child welfare work, and for the furnishing of
nurses and a medical service to the frontiers of settlement; as
to Roads, in co-operation with the municipalities the Government
had pledged itself to make a determined effort, to the limit of
its financial ability to build up and maintain an adequate sys-
tem; m Telephone construction the War had caused a stoppage,
but during the last two years, a renewed effort had been made
to overtake the huge arrears that had accumulated and, with
the completion of this year's work, almost $8,000,000 would have
been added to the investment of the Province in the Telephone
system. References were made, also, to Returned soldiers, La-
bour, and legislation in general.
As to the future, if returned to power "the Government
will continue to confine its activities and energies to Provincial
affairs^; it will continue to exercise care and sanity in its pro-
posals." As to details, special stress was laid upon obtaining
control of the Natural Resources : "A settlement is now assured,
an agreement already having been reached with the Dominon
Government as to the general principles upon which it will be
based." The revenue from the Resources, upon which the Pre-
mier staked much, would be used for Education, for an Advisory
Council of Scientific and Industrial Research, and for Public
Health. Agriculture, he added, would be promoted by a Pro-
vincial irrigation and drainage policy and a Good Roads pro-
gramme would be carefully developed.
At Edmonton, on June 28, a Liberal nomination meeting
selected Hon. J. R. Boyle, A. R. McLennan, Capt. J. C. Bowen,
J. W. Heffernan, K.C., and Mrs. Nellie L. McClung as candidates
and they were all elected in the final result; on July 1st the U.
F. A. in Sedgewick met and decided not to put up a candidate
against the Premier and, during this week, Mr. Stewart had ad-
dressed meetings at Killam, Red Deer, Lacombe, Cardston, War-
ner, Taber and MacLeod; in Killarney the candidate was Major
Harry Strachan, v.c., M.C., who, on July 29, deprecated the en-
trance of the U. F. A. into Provincial politics and declared that
there was nothing to be gained, and much to be lost, in fighting
a Government which was a Farmers' Government in all but
name, with the Federal arena as the effective fighting ground
of the U. F. A. as against high protection and high freight rates
and for better marketting facilities. At Edmonton on July 4, Mr.
Stewart spoke at length and reviewed the situation in general.
He stated that his meetings had been most sympathetic but:
"There is a situation in the cities and in the Province I cannot
describe. Apparently, in Calgary every species of opinion is
being represented by a candidate. In city and country there is an
unsettled condition, an idea that some change may be made,
but as to well-thought-out concentrated opposition it does not
seem in evidence."
28
850 THE CANADIAN ANNUAL REVIEW
From Calgary the Premier went to other points and spoke
almost continually up to the end of the contest. An incident
of the Liberal campaign was Mrs. McClung's fight for
the Government. She spoke at various centres and claim-
ed everywhere that the Stewart Government had done
well for the women. It had removed inequalities under which
women had laboured for many years; it had put into legis-
lation many remedial measures including pensions for widowed
mothers, compensation for injured workmen, nurses for pioneer
women ; it had as good a programme of public health as existed
in the Dominion. Another was the war statement of Capt. J.
C. Bowen in Edmonton (July 6) : "In 1915 the Government
granted the Patriotic Society $15,000 and in 1918 $800,000; in
1919 the sum of $75,000 was turned over to the G. W. V. A. for
relief purposes, in 1920, $50,000 and in 1921, $20,000; in 1921,
$12,000 was given for unemployment relief, $37,000 to the Mem-
X orial Hall Fund in Edmonton and $10,000 to Lethbridge for a
similar purpose. In all, the. Returned Soldiers' Commission was
given $375,000 and the total expenditure in this connection ran
to $1,394,500." A splendid campaign speaker was missing until
the last moment in the Hon. Duncan Marshall, who did not ar-
rive from England — re Cattle Embargo — until the last moment ;
on July 15, accompanied by Hon. Mrs. Ralph Smith of Victoria,
he spoke in Calgary and reviewed the record of the Government.
The Campaign Policy of the Fanners. From the first of the
year, it was fairly obvious that the United Farmers of Alberta
would oppose the Stewart Government whenever the Elections
came. At the Convention of Jan. 18-21 they had passed, with-
out discussion, a Resolution declaring that, in view of the West
Edmonton United Farmers' Political District Association having
gone on record as advocating Province-wide participation in
Provincial politics, "therefore, be it resolved that this Conven-
tion of the United Farmers of Alberta do recommend the adop-
tion of this action in every Provincial constituency." In the
Medicine Hat Federal bye-election of June 27, the issue had
been a clear one; H. W. Wood and Mrs. Walter Parlby had
strongly urged the idea of Group government instead of the
Party system. On July 1st the Headquarters of the U. F. A.
issued a Declaration of Principles which commenced with the
statement that "the present unsettled conditions in Canada,
politically, are due in large measure to dissatisfaction with the
party system of government and that present-day political in-
stitutions have failed to develop a sufficiently close connection
between the representative and the elector and that the people
desire a greater measure of self-government." With this as a
basis, the Declaration continued as follows:
We, the United Farmers of Alberta, base our hopes of developing
a social influence and a progressive force on becoming a stabilized, ef-
ficient organization. We, therefore, place primary emphasis on organ-
ization. Our organization is continuously in authority, and while
THE ELECTIONS; DEFEAT OF THE STEWART GOVERNMENT 851
through it we formulate Declarations of Principles, or a so-colled plat-
form, these are at all times subject to change by the organization. We
are a ^ group of citizens going into political action as an organization.
Our elected representatives are at all times answerable directly to the
organization. Each elected representative is answerable directly to the
organization in the constituency that elected him. We aim to develop
through the study of social and economic problems an intelligent, re-
sponsible citizenship.
A suggested Platform to be used by U. F. A. Provincial con-
stituencies in the Elections followed and included amongst its
planks: (1) Proportional Representation, and a Preferential
ballot in single-member constituencies; (2) endorsation of the
principle of the Initiative, Referendum and Recall; (3) a 30-
days' public notice to be given before the issuing of writs in
any Provincial Election: (4) no Government to be considered
defeated except by a direct vote of want of confidence; (5)
economy and efficiency in administration and the abolition of
Patronage ; (6) creation of a Highways Commission and exten-
sion and improvement of Educational facilities; (7) adequate
provision for Public Health maintenance and the enactment and
enforcement of such control of the Liquor traffic as the people
may request by Referendum; (8) the immediate handing over
of the Natural Resources by the Dominion and encouragement to
Co-operative efforts in marketting and handling the products of
the farm.
There was no formal leader of the Farmers in the cam-
paign though, to all intents and purposes, H. W. Wood, President
of the U. F. A., held that position; he was not a candidate but
visited many parts of the Province, made a number of speeches
and helped the Party to get into organized shape; by July 14
there were 44 candidates in the field recognized by the U. F. A.
There was an unofficial alliance between Labour and the Farm-
ers, illustrated in Lethbridge against Brig.-Gen. J. S. Stewart
and in the Medicine Hat. Calgary, Edmonton and Didsbury rid-
ings; the question of leadership was much discussed and Mr.
Wood, Herbert Greenfield and George Hoadley were each men-
tioned as a possible Premier in case of a U. F. A. victory. At
Calgary on July 11, Mr. Wood made a definite statements to
what might be done in the event of his Group winning: "I be-
lieve that, as the result of this Election, there will devolve upon
the U. F. A. the responsibility of forming a Government in this
Province. Let me say at once that we are not appalled at this
prospect. We realize that it will be a great responsibility, but
T am confident that we can measure up to it. Speaking per-
sonally, I would be in favour, if we are returned, of getting men
who will legislate for the good of the community as a whole. It
is idle to think that we will legislate for the good of the farming
community only." During the campaign there was no organ-
ized attack upon, or general U. F. A. criticism of, the Stewart
Government. This was a unique feature of the campaign and
another was the strong and effective machinery of the Farmers
—infinitely better than that of the Party in power.
852 THE CANADIAN ANNUAL REVIEW
The Conservative Policy in the Elections. The Conservative
Opposition was not well organized but it put up a vigorous fight.
A. F. Ewing, K.C., the Leader in the late Legislature, did not is-
sue a Provincial appeal but expressed his views in a Manifesto
to his own Edmonton electors on June 25. In it he declared that
a member of the Government had promised another Session and
a Redistribution of seats ; claimed that the Province was over-
burdened with Debt to an extent not understood by the Electors
and declared the doubling of the Supplementary Revenue Tax
in cities and towns a forerunner of what was coming; illustrated
the situation with statistics of the growth of the Debt from
$9,293,555 in 1919 and $30,595,200 in 1917, to $41,980,000 in 1920
—with a University debt of $3,500,000 to be added to the later
total and an indirect Debt of Railway guarantees, upon which
the Province paid interest, totalling $18,820,000; alleged that to
this Debt of $63,078,741 (after deducting Sinking funds) there
would have to be added the 1921 authorized Loans of $7,250,000.
Mr. Ewing reviewed the Railway situation and declared the
$2,500,000 put into the E. D. and B. C. to represent a direct loss
in deterioration and waste and that the $1,000,000 required to
put the A. and G. W. into operating condition covered, in the
main, a yearly loss in operation, interest and maintenance of
$802,000.
He described lands in the municipalities as overburdened
with taxation and a considerable proportion of the Motor Tax
now devoted to Roads as due for return to the municipalities —
to the latter, also, the Amusement Tax should be diverted as a
purely local matter. The Telephone system was said to be over-
capitalized as a result of political contracts for material and con-
struction with a coming increase in rural rates inevitable and he
declared that in order to meet the enormous Provincial indebted-
ness and to assist further development, a strong and concerted
effort was necessary to obtain the Natural Resources from the
Dominion: "We are entitled to two things: (1) a conveyance of
the public Domain to this Province, and (2) compensation for
Lands alienated for purely Federal purposes." Finally, Mr. Ew-
ing denounced the Government for having "centralized all the
great activities of the Province in itself — the road building,
the bridge building, the telephone construction and maintenance,
in an organization which spreads all over the Province and con-
trols the municipalities and municipal officials."
So far as this Party was concerned the Election was fought
chiefly on the Financial situation — though there were other
issues. S. B. Hillocks, Conservative candidate in Calgary, claimed
(July 12) that there were not sufficient Provincial assets to
justify 60 per cent, of the Debt and that the Liquor Act had been
so mutilated as to permit of a regime of boot-legging with 90 per
cent, of the people breaking the law. R. B. Bennett, K.C., ex-M.p.
in Calgary, scored the Government for alleged systematic cater-
ing to the foreign vote in Alberta and for a policy of reckless
Railway adventure. The Hon. A. C. Rutherford, the first Liber-
THE ELECTIONS; DEFEAT OF THE STEWART GOVERNMENT 853
al leader of the Alberta Government of 1905-10, supported Mr.
Ewing and the Conservative candidates in Edmonton.
The Result of the Alberta Elections. Mixed up with the
policies and efforts of the three main Parties, was the position
of a number of Independents and the work of the women. There
were, altogether, 57 Government or Liberal candidates, 48
Farmers, 14 Conservatives, 18 straight Independents, 2 Social-
ists, 9 Labourites, and 11 Independents with some kind of party
affiliation. An organized Independent Party issued a Platform
which included (1) the carrying out of all local improvements
by the people for whose special benefit the taxes were raised;
(2) Provincial revenues from municipalities not to be used by
the Central Government but to be spent by the municipal
authorities; (3) unequal taxation to cease and decentralization
of government to be carried out. William Short, K.C., President
r f the Moderation League in Edmonton, and Lieut.-Col. J. K.
Cornwall, CX-M.L.A.. were amongst the supporters of this policy.
The Independent Labour Party had candidates in several of
the urban centres. The activities of the women were consider-
able but not as much as if there had been a direct Prohibition
issue.
There were 8 women candidates running. Two were of the
Government ticket — Mrs. Nellie McClung at Edmonton and Mrs.
F. Langford at Calgary — with Mrs. Irene Parlby and Mrs. Louise
McKinney endorsed by the U. F. A. Mrs. Elizabeth Ferris of
Edmonton ran as a Conservative candidate and Mrs. Annie Gale
as an Independent in Calgary, Mrs. Marie Mellard was the rep-
resentative of the Socialist party and Mrs. Mary Cantin a La-
bour candidate in Edmonton. The women candidates urged Pro-
hibition and Mrs. Gale declared (July 8) at Calgary that "a
woman whose public work does not express the strong protec-
tive and conservative side of motherhood is not worthy of sup-
port"; Mrs. Langford wanted Prohibition of the manufacture
of liquor and Mrs. McKinney had been a Non-Partisan in the
late Legislature. Edmonton and Calgary, each, had 20 or more
candidates in the field and all the Cabinet Ministers— except the
Premier had U. F. A. opponents. The much-discussed Recall
system was not accepted by all the U. F. A. candidates and, ac-
cording to statements after the Election, only 13 of them were
asked to and did sign a Recall obligation.
The result of the contest, on July 18, was the defeat of the *
Government with, approximately, 39 Farmers returned, 14 Lib-
erals, 4 Labour, 3 Independents and one Conservative. Mrs. L.
C. McKinney was defeated by a U. F. A. candidate and Mrs. Mc-
Clung elected by a large vote in Edmonton ; the whole 5 Liberals
were 'returned in that city and A. F. Ewing;, the Conservative
leader defeated, with nearly the whole of his following in the
Province, and General Stewart, in Lethbridge, as the fortunate
survivor; Mrs. Walter Parlby, George Hoadley, O. L. McPher-
son Percival Baker, were some of the notable Farmer candidates
854
THE CANADIAN ANNUAL REVIEW
elected ; Duncan Marshall, A. J. McLean and G. P. Smith of the
Government, were defeated, while C. R. Mitchell in Bow River
had a large majority, as did Mr. Boyle in Edmonton ; Alex. Ross
was the leading Labour candidate elected while P. M. Christo-
phers came in for Rocky Mountain and R. C. Edwards, the ver-
satile publisher of the Eye Opener, was elected in Calgary. The
Hon. C. W. Cross, K.C., Attorney-General for years in the Ruth-
erford and Sifton Governments was elected in Edson. The re-
sult, in detail, was as follows :
Government Opposition Candidate
Constituency Candidate Candidate. Politics Elected Majority
Acadia J- C. Cottrell Ind.-Lib
L. Proudfoot Farmer.. .L. Proudfoot 2,200
Alexandra T. H. Currie P. J. Enzenauer Farmer.. .P. J. Enzenauer 1,913
Athabasca.. Geo. Mills John Angelo Farmer... George Mills 605
Beaver River T. M. Dechene H. Montambault Farmer.. J. M. Dechene 620
Bow Valley Hon. C. R. Mitchell.G. A. Love Farmer.. .Hon. C. R. Mitchell 1.045
Calgary R. C. Marshall Dr. T. H. Blow Cons R. C. Marshall 285
C. J. Ford S. B. Hillocks Cons
Mrs. F. Langford E. H. Cmndell Cons Alex. Ross 894
G. H. Webster C. F. Adams Cons R. C. Edwards 210
F. S. Selwood M. C. Costello Cons F. J. White 784
Alex. Ross... Lab Robt. Pearson 750
F. J. White Lab Mrs. A. Gale Ind.
H. R. Parkyn Lab Robt. Pearson Ind.
F. Williams Soc H. B. Adshead Ind.
1 . T R. C. Edwards Ind Alex. Davidson Ind.
F. C. Potts Ind
..Hon. G. P. Smith V. W. Smith Farmer...V. W. Smith 649
. Martin Woolf G. L. Stringam Farmer... G. L. Stringam 752
T. C. Milnes Ind
Mrs. L. C. McKinney..N-Part. T. C. Milnes 46
.Ind.-Lib Dr. J. E. State 87
.Ind.-Far.
.Ind-Far.
.Farmer... Alex. Moore 420
Farmer... G. M. Johnson 2,776
Camrose ,
Cardston
Claresholm...
Clearwater Dr. J. E. State..
Cochrane ,
Coronation
Didsbury
Edmonton
..O. T. Lee.
R. G. Campbell..
S. W. Chambers.
..A. S. McDonald Alex. Moore
..Dr. A. M. Day G. M. Johnson...
..G. H. Webber A. B. Claypool
Farmer.. .A. B. Claypool 794
.A. R. McLennan A. F. Ewmg.-- Cons A. R. McLennan 695
J. C. Bowen H. H. Crawford Cons J. C. Bowen 515
..27
..72
201
E. E. Roper .TLab E. Brown Ind.-Lab
J. I
Mrs. N. L. McClungMrs. E. G. Ferris Cons Mrs. N. L. McClung.
Hon. J. R. Boyle A. U. G. Bury Cons Hon. J. R. Boyle
J. W. Heffernan W. J. Jackman. Farmer...J. W. Heffernan
..It
Edson
Gleichen
Grouard
Hand Hills
High River
Innisfail
Lacombe
Lac Ste. Anne..
Leduc
Lethbridge
R. McCreath Lab J. Bailey Ind.-Lab.
A. A. Campbell Lab W. R. Ball Ind.-Lab.
A. Boileau Ind J. E. White Ind.-Lab.
J. W. Adair Ind Mary A.Cantin Ind.-Lab.
Wm. Short Ind Mrs. M. Mellard Socialist.
J. K. Cornwall Ind A. L. Marks Ind.-Prog.
G. V. Pelton Ind.-Lib.
..Hon. C. W. Cross John Diamond Lab Hon. C. W. Cross 362
..Harvey Scott J. C. Buckley Farmer...J. C. Buckley 500
..Hon. J. L. Cot£ H. G. Dimsdale Farmer.. .Hon. J. L. Cote" 261
,.R. B. Eaton G. A. Foster Farmer...G. A. Foster 2,669
..J. V. Drumheller Samuel Brown Farmer.. .Samuel Brown 147
..D. J. Morkeberg Donald Cameron Farmer.. .D. Cameron 920
..W. F. Puffer Mrs. Irene Parlby Farmer...Mrs. Irene Parlby 574
Little Bow
Macleod
Medicine Hat.
Nanton
Okotoks
Olds
Peace River....
.Farmer.. .C. M. McKeen 737
....Ind
...Jnd.-Far.S. G. Tobin
Brig.-Gen. J. S.
....Cons Stewart 878
....Lab.
.Farmer.. .O. L. McPherson
10
..698
..C. J. Stiles C. M. McKeen
J. H. Mackay
..S. G. Tobin D. S. Muir
Brig.-Gen. J. S
Stewart
John Marsh
..J. McNaughton O. L McPherson
..G. Skelding W. H. Shield Farmer.. .W. H. Shield 107
..Dr. O. Boyd P. E. Baker Farmer...P. E. Baker 563
H. H. Foster W. G. Johnson Lab W. G. Johnson 1,324
.J. M. Glendenning...D. H. Galbraith Farmer.. .D. H. Galbraith 269
E. A. Daggett Ind.-Lib George Hoadley 739
Geo. Hoadley Farmer...
.N. S. Smith Farmer...N. S. Smith 658
.D. M. Kennedy Farmer.. .D. M. Kennedy 1,955
E. S. Karr Ind.-Lib.
.G. MacLachlan Farmer.. .G. MacLachlan 1,298
F. D. Armitage Ind
..Hon. D. Marshall.
..W. A. Rae
Pembina Dr. J. H. Phillips.
THE FORMATION OF THE GREENFIELD GOVERNMENT 855
Government
Constituency Candidate
Pincher Creek...H. Bossenberry..
Opposition
Candidates
.E. G. Cook.
Ponoka
Recliff
Red Deer
Ribstone
Rocky
Mountain...
Sedgewick
St. Albert
Stettler
Stony Plain....
St. Paul
Sturgeon
Taber
Vegreville
Vermilion
Victoria
Wainwright....
Warner
Wetaskiwin....
Whitford
..W. A. Campbell..
...C. S. Pingle
.J. J. Gaetz
..J. G. Turgeon
D. R. Mclvor
A. E. Cox
.P. Baker
..Alex. Morrison
..Hon. C. Stewart..
..L. Boudreau
..E. H. Prudden
.J. Miller
.P. E. Lessard
.Hon. J. R. Boyle
.Hon. A. J. McLean
J. S. McCallum
.A. W. Ebbett
.F. A. Walker
.H. Strachan
.F. S. Leffingwell
.H. J. Montgomery..
.A. Shandro
.W. C. Smith
.G. W. Smith
.C. O. F. Wright
P. M. Christophers.
..Maj. W. Sharpe
..T. St. Arnaud
.A. L. Sanders
.E. W. Lundy
W. M. Washburn....
Dan Brox
•W. J. Joly
.S. A. Carson
L. Peterson
.A. M. Matheson...
.R. G. Reid
.W. Fedun
.G. L. Hudson
R. S. Love ....
.M. J. Connor
E. E. Sparks
Candidate
Politics Elected Majority
..Farmer...E. G. Cook 101
..Ind.-Lib.
..Ind.
.. Farmer... Percival Baker 576
..Farmer...W. C. Smith 563
..Farmer...G. W. Smith 1,014
..Farmer...C. O. F. Wright 1,283
...Lab P. M. Christophers 161
..Ind.-Far.
Hon. C. Stewart Accl.
...Farmer...T. St. Arnaud 234
..Farmer...A. L. Sanders 1,498
..Cons W. M. Washburn 354
..Farmer...
..Ind.-Far.
..Farmer...W. J. Joly 394
..Farmer...S. A. Carson 866
.. Farmer.. .L. Peterson 318
..Farmer... A. M. Matheson 1,722
..Farmer...R. G. Reid 2,016
..Farmer...W. Fedun 113
..Cons R. S. Love 964
..Farmer...
..Farmer...M. J. Connor 265
...Farmer... E. E. Sparks 292
A. Shandro Accl.
Formation of the Greenfield Government. As soon as the
results were known, Mr. Stewart announced (July 19) that he
would only continue in office until the United Farmers were
ready to take over the administration; at the moment, he said,
he was not in a position to recommend anyone as head of the
Government, because there was no recognized leader of the
new majority. There was a feeling in some quarters that Mr.
Stewart mig'ht, himself, be asked to assume the leadership, but
this rumour did not develop into action. Mr. Wood, in Calgary,
announced that until a Conference of the elected U. F. A. mem-
bers had been held "no one will be in a position to accept or re-
ject a call to the Premiership." He then enlarged upon his well-
known theory: "What the people want now is self-government
through their representatives. This will be impossible so long
as the elected representatives operate the political machinery
by which they themselves are elected. The people of Alberta
have spoken in no uncertain terms against politician represen-
tation, xxx The people themselves will operate the polit-
ical machinery by which they elect their representatives to
serve them."
A meeting of the 38 Farmer representatives was called for
the 26th at Calgary. Meanwhile, Percival Baker, a prominent
U. F. A. member (Ponoka) had died on the 20th as the result
of an accident which removed one who was supposed to be as-
sured of a seat in the new Cabinet ; all kinds of rumours were
current as to the Premiership and the post of Attorney-General,
in particular. At the Calgary meeting, where R. G. Reid of Ver-
milion presided, it was announced that H. W. Wood, Herbert
Greenfield, O. L. McPherson, George Hoadley and J.E. Brown-
ie were nominated for the Leadership; that Mr. Wood declined
ind spoke in favour of Mr. Brownlee who, upon hearing some
objection to a lawyer, at once withdrew; that Mr Greenfield
was then elected Leader. An Englishman by birth, 52 years of
856 THE CANADIAN ANNUAL REVIEW
age and a resident of Canada since 1892, Mr. Greenfield had
farmed near Watford, Ontario, until 1906, when he went to Al-
berta and homesteaded at Westlock ; here he met with success
as a farmer and as a public man of strong personality; here he
won reputation in the great organization of Albertan farmers as
a man of ability, sincerity and principle.
The Calgary Albertan, a Liberal journal, described the Pre-
mier-elect on the 28th as follows: "A strong, sane, vigorous,
well-mformed farmer, British born, and British educated, Cana-
dian trained, he has had extensive experience in two Prpvinces.
A resident for some years in Ontario, a pioneer in the north of
Alberta, one of the homesteaders himself, he knows well the
trials and troubles of the thousands of pioneers in the Province,
and the problems of the hundreds of thousands who are not pion-
eers." A couple of weeks passed during which the new Cabinet
was in course of formation and, on Aug. 12, Mr. Stewart resigned
and the Lieut. -Governor formally called on Mr. Greenfield to
form a Government. The retiring Premier issued a farewell
statement which expressed his pride in 12 years of public life
and work for the Province ; his belief that no agricultural in-
terest had been neglected and that much good legislation had
been given in the 1,000 public and private Acts passed in 16
years by the Liberals ; his appreciation of public sympathy
and personal support and the hope that his successors would re-
ceive both in full measure. The new Cabinet was announced on
the 13th and sworn in on the 14th as follows.
Department Minister
Prime Minister, Provincial Treasurer and Provincial
Secretary Hon. Herbert Greenfield
Attorney -General Hon. John Edward Brownlee
Minister of Agriculture .' Hon. George Hoadley
Minister of Municipalities and Public Health Hon. Richard Gavin Reid
Minister of Education Hon. Perrin Earle Baker, B.A.
Minister of Railways and Telephones Hon. Vernor Winfield Smith
Minister without Portfolio Hon. Mary Irene Parlby
Minister of Public Works Hon. Alexander Ross
Mr. Greenfield stated that he was taking charge of the Port-
folios mentioned, temporarily, and that there would be changes
in this connection. Of the new Ministers, Mr. Baker was Can-
adian-born, a farmer and 44 years of age ; Mr. Reid was a Scotch-
man 42 years old and a farmer in Alberta since 1903; Mr. Smith
was Canadian-born, a prosperous farmer near Camrose with
1,000 acres of land and perhaps the largest herd of Hereford
cattle in Northern Alberta ; Mrs. Parlby had come out from Eng-
land to Alberta as a visitor in 1896 and there had met and mar-
ried W. C. H. Parlby, M.A., Oxon, who had resided on his ranch
at Alix since 1890; Mr. Brownlee was of Ontario birth, 37 years
old, well-known as a lawyer and as Counsel for the U. F. A. and
the United Grain Growers, Ltd. ; Mr. Ross was a Scotchman,
41 years of age, a stone-mason by trade and a leader in the La-
bour life of the Province ; Mr. Hoadley was an Englishman, 55
years old, a rancher and farmer for many years, and a moderate
Conservative in politics. The policy of the new Government
THE FORMATION OF THE GREENFIELD GOVERNMENT 857
soon developed and one of the first incidents was the stoppage
of all work on the roads and highways of the Province with a
view to taking stock of the situation and defining the new policy
of the Public Works Department ; on Sept. 14 Orders-in-Council
were passed giving effect to settlements reached between De-
benture holders and the towns of Macleod and Bassano which
had found difficulty in paying their interest.
On Sept. 22, Mr. Greenfield expressed to an Edmonton gath-
ering the great desire of the new Government to carry on exten-
sive work in the enlargement of Hospital facilities in all parts
of the Province and, particularly, in the rural districts; Mr.
Hoadley stated in Calgary on Sept. 26 that Irrigation would have
special attention and, in November, the Southern Alberta Survey
Board was appointed. The new Premier addressed the Calgary
Canadian Club on Oct. 7 and outlined the views and policy of
the Farmers' movement as he saw it : "Political organization
in the past has always been directed by a small group of men at
the top and it has gradually percolated down to the people. We
have got to reverse that. The people, themselves, have to direct.
In our political movement every constituency has complete auto-
nomy within itself. Each decides whether it will nominate a
candidate without any interference from any outside source
whatever."
On Sept. 30 an extension of time was granted by the Govern-
ment on all proceedings in connection with the sale of land due
for foreclosure under the Provincial tax sales of 1920. The Pre-
mier stated on Oct. 7, in Calgary, that the Government was spend-
ing $100,000 in keeping the schools going in parts of Southern
Alberta effected by drought and storm and that they intended,
also, to go on with the Stewart policy of a Soil Survey; in No-
vember it was stated that about 60 appointees of the late Gov-
ernment had been let out in the various Departments and that
economy was being practised in every direction by the new Min-
isters. On Dec. 4, the entire Cabinet was elected or re-elected
by acclamation — Mr. Brownlee running in Ponoka and Mr.
Greenfield in Peace River.
Reports of the Government Departments. The calendar
year, in 1921, was the fiscal year of the Departments and the Re-
ports, though covering a period partly under the Stewart regime,
were prepared and issued by the new Ministers. Mr. Greenfield
had taken the place of Hon. J. L. Cote as Chairman of the Scien-
tific and Industrial Research Council of Alberta — composed also
of President H. M. Tory, J. T. Sterling, Chief Inspector of Mines,
Prof. J. A. Allan, N. C. Pitcher, M.E., and Edgar Stansfield; its
Report for 1921 showed much work done in the study of Alberta
fuels and geology, the development of road materials, investi-
gation of salt resources and of conditions at Fort McMurray.
As Provincial Secretary, the Premier reported taxes on corpor-
ations as $308,000; automobile registration as 39,775 compared
with 38,015 in 1920 and 41 in 1906; the revenue from this source
858 THE CANADIAN ANNUAL REVIEW
as $717,892 with $195,000 from Theatre and other amusement
licenses.
As Minister of Public Works, the Hon. Alex Ross received
a Report from the Deputy-Minister, J. D. Robertson, showing
362 bridges constructed and 157 repaired in the year, 65 Ferries
operated, a Nurses' Home constructed at Ponoka for 46 nurses
and the Female Goal at Fort Saskatchewan under way. The
Highways Branch left the matter of road construction to fur-
ther enquiry and fuller information. The Hon. Vernor W. Smith
as Minister of Railways, reported only 31 miles of new line for
the year, but as being none-the-less an active one for Railways
owned outright by the Provincial Government or in which it
was heavily interested : "In continuation of the policy laid down
in the previous year when the Province assumed control of the
Northern Railways, further large sums were required during
1921 in order that these lines might be carried to completion
and placed in a condition that would permit of economical oper-
ation." The following table was given as to details :
Authorized at Advanced by
Session of Government
Railway Company
lid mon ton Dun vegan and B C.
1921
in 1921.
Central Canada Railway Extension
600,000
321,811.16
Alberta and Great Waterways
2,100,000
2,323,000.00
Lacombe and Northwestern
150,000
215,000.00
Totals
$4,350,000
£4,334,811.16
John Callaghan, Deputy-Minister, gave a careful statement
as to causes and effects in respect to this legislation. As Minis-
ter of Telephones, Mr. Vernor Smith received reports of prog-
ress. During the year a good deal of new Plant was added to
the system in all its branches — the Rural branch having 2,050
miles of poles added and 2,224 new subscribers. The Long Dis-
tance Lines were increased by 482 miles of poles and 6,524 miles
of wire, and additions to exchanges were made in a number of
cities and towns with the greater part of the work carried out
at Calgary and Lethbridge. A new automatic exchange was
provided in the North Hill district, Calgary, which had a capacity
of 4,000 lines ; 1,500 lines of automatic equipment were installed
and put into service with 1,150 subscribers connected to the Ex-
change. An interesting event was the installation of the Car-
rier System of Multiplex Telephony between Calgary and Ed-
monton and its complete success. This System made it pos-
sible to carry on three distinct conversations over one pair of
wires at the same time without interference.
The Assets of Alberta Government Telephones were given
by R. B. Baxter, General Superintendent, as $17,676,026 invested
in Plant and, with other amounts in Supplies, etc., the total
was $22,898,223; the Liabilities included a bonded Debt of $21,-
406,880 with a Sinking Fund of $459,767 and Replacement Re-
serves of $660,299. The Hon. R. G. Reid, as Minister of Public
Health, received Reports from various Hospitals. That of Pon-
THE BRITISH COLUMBIA GOVERNMENT IN 1921 859
oka — the Provincial Mental Hospital — showed 698 patients on
Jan. 1st, 1921, and 776 at the close of the year with a recovery
rate of 34-05 per cent., in the case of males, and 38 46 in that of
females. The Provincial Gaol, Lethbridge, had an average daily
population of a little over 128 with 553 admitted during the year
and 566 discharged, and Expenditures of $73,447 ; the Provincial
Gaol, Fort Saskatchewan, had a daily average population of 188
with Expenditures of $59,235 and the Hospital for Returned
Soldiers at Red Deer showed 110 patients on Jan. 1st, 1921, and
96 on Dec. 31, with a cost ot $58,499.
Mr. Reid, as Minister of Municipal Affairs, dealt with the
administration of the Town Act, Rural Municipality Act, Village
Act, Local Improvement Act, and 15 other Acts and, in addition,
levied and collected local improvement taxes in unorganized
areas and the taxes levied under the Educational Tax Act on
lands outside of organized school districts ; the Department also
assisted villages, rural school districts and local improvement
districts in the collection of arrears of taxes. J. H. Lamb, Dep-
uty-Minister, reviewed in elaborate terms the working system
and responsibilities of the Department and described the details
of operation in 1921 with moneys actually collected totalling
$2,524,199. The Municipal Finances Commission (Hon. H. Har-
vey, Hon. N. D. Beck, Hon. J. D. Hyndman and H. M. E. Evans)
reported having dealt with the financial condition of 8 places
including Athabasca, Bassano, Redcliff, Tofield, Wainwright and
Wetaskiwin ; statistics of Alberta cities for 1921 were also given.
The Attorney-General, Hon. J. E. Brownlee, reported a record
amount of crime in the Province for 1921 with 16,084 cases
handled by the Provincial and City Police; there were convic-
tions in 85 per cent, of the cases including 1,226 under the Liquor
Act.
The Oliver Government (Liberal) entered up-
British Col- on its second term of office in 1921 ; Elections late
umbia: Gov- m 1920 had shown 136,939 votes cast for the Lib-
ernment, Gr^ 94^903 for the Conservatives, under the Hon.
tiered W. J. Bowser, K.C., as Leader, and 123,314 for In-
Legislation dependent candidates of wide and varied opinion;
in 1921. the Legislature stood 34 Liberals, 10 Conservatives
and 2 Independents. Mr. Oliver had the usual var-
iety of important matters to deal with during the year. With
members of the Cabinet, he received, on Jan. 18, a Delegation
representing the Provincial Medical Council which protested
earnestly against Chiropractors being licensed in the Province.
On Feb. 9 a vigorous protest came from the Chinese Consul
at Vancouver against a clause in the Municipal Act which for-
bade employment of white girls or women in Chinese estab-
lishments; on Apr. 21 it was announced that the Gov-
ernment had promised a $5,000 contribution to the I. O. D. E.
War Memorial Fund; on Apr. 19 the Premier shared
X
860 THE CANADIAN ANNUAL REVIEW
with H. E. the Duke of Devonshire in the unveiling of a Mem-
orial Statue of the late Queen Victoria on the grounds of the
Parliament Buildings. It was designed and constructed by A. B.
Joy, an English artist, the material was bronze and the corner-
stone had been laid by H. R. H. the Prince of Wales in 1919. In
the Address which he presented to the Governor-General, Mr.
Oliver paid tribute to recent British Sovereigns, but, especially,
to "the great Queen who did so much to consolidate the Empire
and lay the foundations of its power and might of to-day."
Following this incident, the Premier went East and visited
Ottawa, Toronto, Montreal and Halifax; at the Federal capital
he was told by Mr. Premier Meighen and Hon. Dr. Reid that
there was no use, at this juncture, in pressing the question of
Dominion acquisition of the Pacific Great Eastern Railway; at
Halifax he attended the Canadian Good Roads Convention, and
discussed the problems of Pacific Coast highways ; while in On-
tario he visited his father, who was in his 89th year. On July 18
it was announced that $340,000 had just been allotted by the
Government as a final appropriation to the municipalities for
Better Housing construction in the interest of returned soldiers,
with $1,701,500 as the total expenditure. A keen protest was
offered to the Premier, who was also Minister of Railways, at
this time, as to the action of the Government in placing $3,500,-
000 of Insurance on the P. G. E. Railway with Lloyd's, the
British underwriting concern. The B. C. Fire Agents' Associa-
tion tried and failed to have this cancelled, and, on July 26, wrote
Mr. Oliver claiming that Lloyd's was unlicensed in the Province
and that there were many Companies under license, with large
deposits in the Government's hands, which could have carried
the risk; the Premier replied that "tenders for this Insurance
were called for by public advertisement, and the tender most
favourable to the Railway Company was accepted." He was
unaware of the fact, if it was one, as to non-license.
To a large meeting of business men in South Vancouver, on
Aug. 24, the Premier dealt with unemployment: "I started
working before I was 10 years of age, driving a donkey in the
mines in Derbyshire, and I have been working ever since, and
never harder than as Premier of British Columbia." The reason
for unemployment in the Province, he said, was because the
nopulation was misplaced and not distributed in accordance with
the requirements of the country ; there were far too many mer-
chants with resultant heavy overhead expenses : "We have been
altogether too extravagant in our buildings and in our ideas."
The Province was importing more food than it was producing,
and as to South Vancouver, people had gone into the municipal-
ity under conditions where they could not earn a living; the
growing expenditure had been undertaken largely to meet the
situation created by this over-population of a very small area of
the Province. An incident of the year was Mr. Premier Oliver's
vigorous fight against existing Railway freight rates. He gave
THE BRITISH COLUMBIA GOVERNMENT IN 1921 861
the Dominion Railway Board, at Vancouver, on Oct. 17, a mass
of historical data as to the relations of the Railways, the Prov-
ince, and the Dominion since Confederation: "I wish to show
that from the time of Union, 50 years ago, down to the present
time, with possibly short intervals, the Dominion has never lived
up to the spirit of the terms of Union." He claimed that the
Railway Acts of 1868 and 1879 did not permit of discriminatory
rates upon any railway under Dominion jurisdiction:
The discriminatory rates imposed upon British Columbia since then,
besides being unjust exactions, have stifled industry and development to
an extent which can not be calculated; they have retarded and restrict-
ed the proper exploitation of our great wealth of natural resources ; they
have made this Province one of the most expensive, when it should
have been the least expensive, in which to live; they have retarded and
restricted the settling of our agricultural lands ; even to-day that same
imposition is preventing the Port of Vancouver from becoming a great
Canadian grain port, although it is within 600 miles of the grain belt
and despite the fact that millions of bushels of Canadian-grown grain
are being exported through ports in the United States on the Atlantic
seaboard.
In the Legislature, on Dec. 30, Mr. Oliver stated that this
and other protests had brought some relief, and he cited several
reductions of' the past year of special kinds and to and from
specific points. As Minister of Railways, the Premier had to
deal, personally, with the Pacific Great Eastern problem. It had
been uppermost ever since he took office and was an inheritance
of the lavish Railway construction period. The Hon. John Hart,
Minister of Finance, had put the situation as follows in a speech
at Murray ville (Feb. 1st) : "The Government started office
handicapped by an empty treasury and a wrecked credit and the
P. G. E. was the chief cause for this state of affairs. Of the 27
millions they had borrowed since then, $14,300,000 had gone to
the P. G. E., $4,000,000 to pay Debts, and the other 9 millions
was for constructive work which increased the Assets of the
Province." In the Legislature, on Feb. 16, Mr. Premier Oliver
stated that the P. G. E. Railway was taken over by the Govern-
ment on July 22, 1918, with Hon. John Hart, Hon. J. W. deB.
Farris, and himself, as Directors; the deficit for 1918 was $115,-
255, for 1919 $202,113, and for 1920 $324,328. A. B. Buckworth
was appointed General Manager of the road on Aug. 1st, 1920,
at $6,000 per annum, and, he added, the P. G. E. received a sub-
sidy from the Federal Government for carrying mails ; the Pro-
vincial Government had loaned to the P. G. E. since it was taken
over a total of $14,399,668.
On Feb. 26 he amplified this statement by declaring that
$40,000.000 would be spent on the construction work of the
P. G. E. Railway by the Province, at the end of March, 1921,
when the line was expected to.be in operation to Prince George.
Hence the necessity for borrowing an additional $4,000,000 for
the coming year's work on the Railway. In 1920 $4,000,000 had
been borrowed, but it proved insufficient to complete the line,
862 THE CANADIAN ANNUAL REVIEW
owing to extreme advances in construction and maintenance
costs,' and deficits in operations. It was expected that this $4,-
000,000 would complete the line. The legislation was enacted,
but it gave the Opposition Leader a text for strong criticism.
On Aug. 8 the Premier announced that there would be a
reduction of 35 per cent, in freight rates on the P. G. E. Railway
for cattle shipments, and it was to be effective immediately. As
to the position of the Railway at the close of the year, it would
appear that, through Provincial guarantees, the Government
was on $20,160,000 bonds of this Line now held by the public.
In addition, the Government had expended $21,159,618, charge-
able to Deferred Assets. Other current items in connection with
this Railway swelled the account — the interest on the Public
Debt had increased by $1,203,600 and Sinking Fund requirements
by $317,500, with $500,000 as the estimate for loss on operation
in the 1921 fiscal year. On Nov. 28 a large Delegation, led by
Sir Frank Barnard and including E. P. Davis, K.C., Eric Hamber,
R. P. Butchart and others, waited upon the Government and dis-
cussed with the Ministers the tremendous financial demands of
this enterprise. They suggested, and the Premier accepted, a
proposal that President E. W. Beatty of the C.P.R., and D. B.
Hanna of the C.N.R., be asked to help in naming a Commission
of experts to go into the matter, root and branch.
Meanwhile, there had been some changes in the Govern-
ment. Prior to the opening of the Legislature, in February, Mrs.
Ralph Smith, the popular member for Vancouver, who had been
elected by a vote of 18,082 and a majority of 7,354, was offered
the Government nomination as Speaker of the new House. She
declined the honour but, on Mch. 24, she accepted the position of
Minister without Portfolio in the Oliver Government and was
at once sworn in as the first woman to become a Cabinet Min-
ister in the annals of the British Empire. To the press, Mrs.
Smith said, very briefly: "I feel that this is a great honour,
not conferred on myself, but on the womanhood of the Prov-
ince. We fought a long time for our suffrage and we have
broken down many barriers. Now it remains to be seen how
women can conduct themselves in public life." A few months
later the Hon. Mrs. Smith (Sept. 23) stated that she would
not be a candidate in the Federal elections, though she hoped
to go to Ottawa ultimately.
On Nov. 19 she resigned her position in the Government
and, in a letter to the Premier, said that: "For some time I
have felt, as you know, that I should take this course, and I have
been in the unfortunate position of having to assume the re-
sponsibility of acts of the Government without being in a posi-
tion to criticize or advise, x x x I am, after all, primarily
interested in women and children, and no matter what Govern-
ment has the power, as long as I can serve the people, whom I
have the honour to represent, then I shall find the happiness that
public life gives." It was generally understood, and Mrs. Smith
THE BRITISH COLUMBIA GOVERNMENT IN 1921 863
so stated (Nov. 21) that she would be given a Portfolio
and she had hoped for this so as to be in a better position to work
for the interests of the women and children of British Columbia.
When the Liberal Government was formed at Ottawa, in De-
cember, it was announced that Hon. J. H. King, Minister of
Public Works at Victoria, had been offered the same Depart-
ment in the Dominion and would accept it as soon as arrang-
ments could be made for his retirement and election. At this
time, also, Hon. J. W. de B. Karris, K.C., Attorney-General and
Minister of Labour, wired from Ottawa, on Dec. 21, his intention
to retire and resume the practice of his profession.
The Ministers and Their Departments. The Minister of
Public Works (Hon. J. H. King) issued an elaborate Report for
the fiscal year 1920-21. It dealt with roads and bridges and high-
ways as well as buildings, with Electrical Energy and inspection
of Factories and Dykes. During 1920 considerable progress was
reported in the linking up of gaps in the main trunk highways
with the following portions constructed: Osoyoos to 9-Mile
(6^2 miles) over Anarchist Mountain; a section about 6 miles
West of Rossland; Thrums to Brilliant (4*/2 miles) ; Kuskanook
to Sirdar (5^ miles) and, in all, 22 miles of new construction of
standard road-bed. In addition to this, considerable reconstruc-
tion and maintenance had been undertaken by day-labour on
various sections. There was, also, some development in the work
done under the Canada Highways Act, by which the Province
became entitled to $1,252,000 of Federal aid for specific and ap-
proved construction; as to hard surface road construction, 16
miles were completed in the year ; the Trans-Provincial Highway
was said to be making progress. Repairs and improvements on
the Parliament buildings and the Mental Hospitals of the Prov-
ince were described and the inspection of 314 bridges reported.
The Inspectors of Factories and Dykes reported — the latter as
to 24,142 acres of dyked lands and 42 miles of dykes in the
Drainage District.
The Road policy of the Province was under control of this
Minister, and Dr. King presented to the House on Feb. 26 figures
showing that out of a total of $600,000 set aside for Public
Works under the B. C. Highway Act, 1920, there had been spent
up to Dec. 31, of that year, $439,803. Money authorized for
Public Works under the B. C. Loan Act, 1919, had been expended
to a total of $821,874 in 1919-20 and $628,470 in 1920-21. At
the 6th annual Convention of the Good Roads League and the
Union of B. C. Municipalities, which met at Port Alberni (Aug.
30), with 150 delegates present, much was said as to the high-
way situation. Mayor R. H. Gale, Vancouver, presided and a
Resolution was passed expressing disappointment at the Gov-
ernment's delay in recognizing the need for a Trans-Provincial
Highway. A committee was appointed to wait upon the Cabinet
and Mayor Gale stated, as to the portion of the Pacific Highway
near the International Boundary, that "tourists are pouring into
864 THE CANADIAN ANNUAL REVIEW
this Province in ever-increasing numbers, and we find that the
route over which most of them must travel is not only a disgrace,
but, at the same time, extremely dangerous. While quite pre-
pared to acknowledge the work done by the Government on
this road, I believe that the time has undoubtedly come when
the Canadian portion of the Pacific Highway should be com-
pletely paved." P. Philip, Provincial Roads Engineer, repre-
senting the Minister, stated that there were 14,626 miles of
roads serving a population in unorganized territories which in-
cluded about 13% of British Columiba's entire population. Only
four-tenths of one per cent, of the total area of the Province
was within cities and municipalities although these held 87 per
cent, of the population. Automobile licenses had increased
from 2,000 in 1911 to 28,000 in 1920. Much good road- work
was under way. A lot of attention, he added, had to
be given to bridges and ferries, as well as roads, and there
were 50 ferries in British Columbia. Delegates wanted more,
however, and Mayor C. F. McHardy of Nelson, Mayor J. J.
Johnston of Mew Westminster, Percy Gomery, and others,
pressed for more rapid construction. The League was inform-
ed that the Province had, so far, availed itself of about $100,000
under the Federal Highway Act ; that the Dominion would add
$50,000 to its Banf f-Windermere appropriation ; that there were,
approximately, 32,000 automobiles in British Columbia, with
about one-third of these on Vancouver Island. Mayor Gale
was re-elected President.
The trouble as to the Trans-Provincial project seemed to
lie, very largely, in the question of rival routes, and these the
Minister had enquired into and, in some cases, visited during the
year; the matter of expense, also, was vital in a Province of
vast mountains and forests. The Opposition in the House made
the most of these difficulties and the roads in the Cariboo were,
especially, criticized in the press by Canon Hinchcliffe, M.I,.A.,
and Hon. W. J. Bowser, after a return from that region on Sept.
18. Meanwhile, the Government had come more fully into the
Federal Highway scheme, had submitted plans which were ap-
proved by the Dominion engineers, and, of the sum set aside,
$1,051,000 was allocated under mutual agreement.
In the House, on Oct. 31, Dr. King stated that a total of
$7,216,377 had been expended on roads and bridges in the Prov-
ince during the past four fiscal years ended Mch. 31, and of this
amount $2,100,000 was borrowed. Outlays for each fiscal year
were as follows : 1917-18, $1,303,982; 1918-19, $1,433,832; 1919-20,
$1,770,649; 1920-21, $2,707,913. The estimated amount of money
set aside for public roads out of current revenue for the fiscal
year of 1921-27 was $2,190,100, and since Apr. 1st there had been
borrowed $2,400,000. On Nov. 2nd the Minister announced that
the Government had reached a decision on the Trans-Provincial
question and proposed to adopt what was known as the old
Dewdney Trail as the route to connect the towns of Hope and
THE BRITISH COLUMBIA GOVERNMENT IN 1921 865
Princeton for the new Highway which was to connect the road
systems of the Coast and the Interior. Further investigation,
however, would be necessary before operations commenced.
The Hon. E. D. Barrow, Minister of Agriculture, in his
Report for 1920, included statements from W. J. Bonavia as
to Publications which included 328,250 Bulletins, circulars and
Reports issued during the year;* particulars as to 72 Women's
Institutes with 2,758 members and Farmers' Institutes number-
ing 129 with a membership of 5,720; reports as to Horticulture
and Fruit pests with inspection of soils, orchard conditions, etc. ;
reports from Agricultural representatives, Plant pathologists,
the Chief Inspector of Imported Fruit and the Prairie Markets
Commissioner at Calgary, the Live Stock Commissioner and
Veterinary Inspector; the results of Soil and Crop Surveys and
Irrigation needs and conditions, and statistical details as to 14,-
495 farmers in the Province who had been asked for returns
with 60 per cent, responding. D. Warnock, O.B.E., Deputy-Min-
ister, reported for 1920 a value of $14,014,873 for Live-stock and
a value of $68,004,953 for Agricultural products; Agricultural
imports from the other Provinces of $18,902,981 and from for-
eign points of $7,913,488; a Fruit production of 79,549,743 pounds
valued at $4,951,750— of which Apples totalled $2,796,215 ; a vege-
table crop of $8,898,819 and Fodder crops of $17,410,852.
The B. C. Land Settlement Board and the Agricultural
Credits Commission, with Lieut.-Col. R. D. Davies, Director,
were under jurisdiction of this Minister and under considerable
discussion during the year. On Feb. 21 Mr. Barrow presented
the 1920 Report to the House showing an expenditure by the
Board for the year of $152,880 with $56,044 of revenue and a
total expenditure upon 16 areas under settlement of $550,370 as
the purchase price and $794,498 as the total of development costs
to date ; these areas were widely scattered and included Courte-
nay, Creston, Kelowna, Fernie, Telkwa, Prince George, Cran-
brook and other places not so well known. It was stated that
Soldier Settlers in these areas were showing a determination to
make good, and that such progress towards permanent settle-
ment had been made that general stores, now being operated by
the Board, were to be transferred, at some points, to the local i
management of the cities. Strong community spirit had de-
veloped, particularly at Merville and Lister, which now were
firmly established. The total acreage included in settlement
areas to date was 121,141 acres, of which 46,647 acres had been
surrendered to the Board at a cost of $200,000; there were 19,156
acres resold to bona fide settlers, including returned British
Columbia soldiers.
The Assets of the Board were placed at $1,040,808 and the
Liabilities included Debentures for $1,000,000 due in 1941. As
to Agricultural Loans there were grants during 1920 totalling
*Note-It may be added here that the Government Reports of this Province are
exceptionally good as to printing and illustrations.
866 THE CANADIAN ANNUAL REVIEW
$71,440 to 42 soldier-settlers under the Board. These, with the
277 in force at the end of 1919, made a total of 319 with Loans
of $655,640. In the Legislature W. A. McKenzie (Cons.), on
Nov. 15, warmly criticized the Board and claimed that there
were very few in these settlements of the returned men making
good because of the heavy cost of land-clearing and interest.
Hon. Mr. Barrow, on Nov. 21, replied to these and other criti-
cisms and dealt with specific cases. Some of the returned men
had, more or less, forced the issue refusing to listen to his advice
in the selection of a place to settle. The Minister wished them
to go to Central British Columbia, but they had selected lands
near Courtenay — lands which were very heavily timbered and
difficult to bring under cultivation: "Even at that, we have
accomplished a great deal. Some of the men have done remark-
ably well ; others never would do well at farming, and we have to
make the best of the situation." He blamed politics for most of
the trouble between settlers and the Government.
The Report of the Hon. J . D. MacLean, Provincial Secretary,
and in charge of Mental Hospitals, etc., gave the figures for the
year of Mch. 31, 1921, during which admissions to these institu-
tions totalled 489 and discharges 477; at the close of the fiscal
year 1,566 patients were in residence at New Westminster, Es-
sondale and Saanich, compared with 1,458 on Mch. 31, 1920; the
cost of maintenance was $622,067. In April the Legislature
voted $237,000 for construction of a new building at Essondale.
To Dr. MacLean, the Provincial Health Officer, H. E. Young,
M.D., and for many years Minister of Education, reported for the
vear of June 30, 1921, as to Child Hygiene in the Province —
which was the first in Canada to adopt compulsory medical ex-
amination of children ; Public health, nursing and Red Cross co-
operation; Venereal diseases' law and enforcement, with Gov-
ernment provision of free expert opinion, free treatment, medi-
cine and laboratory service ; infectious diseases which showed
a marked decrease, with vaccination pressed along voluntary
lines, against "a very active and clamorous minority"; sanitary
inspection covering cemeteries, sewerage, water supplies, etc.
As to School children, 3,049 were medically inspected in the
High Schools, 32,392 in the graded city schools, and 29,390 in the
others ; contagious diseases reported in the Province during the
year totalled 4,699 cases. In the Legislature during its first
Session of the year, Mr. MacLean carried a measure which
provided for taking over by the Government of the plant, lands,
assets and liabilities of Tranquille Sanitarium, near Kamloops,
and for the maintenance and management of this institution as
a Government concern. Mr. MacLean, during the year, received
the Report of the Provincial Library and Archives Department
(Sept. 30,1921) from J. Forsyth, Librarian and Archivist, show-
ing the issue of 20,063 volumes in the year, the addition of 1,719
new books and the reading of 1,045 Manuscripts and arrange-
ment of 5,000 others. The Provincial Museum, also, was under
THE BRITISH COLUMBIA GOVERNMENT IN 1921 867
his supervision and F. Kermode, Director, reported 22,550 visit-
ors in the year 1921 with varied activities of a collective char-
acter.
The Hon. T. Duff Pattullo, Minister of Lands, reported for
the year ending Dec. 31, 1921, that 42 Surveyors had been em-
ployed during the year and that 155,374 acres of Crown Lands
were surveyed; that the Inter-Provincial Boundary Commission,
composed of A. O. Wheeler, acting for British Columbia, and
R. W. Cautley for the Dominion and Alberta Governments, which
had the marking of the Alberta-British Columbia boundary in
hand, were reaching the final stages of their work; that the
total of all Surveys made and gazetted in the Province was 409,-
360 acres during 1921 ; that the Land sales of the Department in
the year were 37,068 acres, the Crown grants issued were for
163,161 acres, the Pre-emptions inspected totalled 1,843 and the
Coal-prospecting Licenses covered 102,400 acres. To Mr. Pat-
tullo a Report was submitted by J. W. Clark, Superintendent
of B. C. Soldier Settlement — with special attention to the town-
site and settlement at Oliver where the expenditure up to Dec.
31, 1920, was $1,403,521. At the close of 1921 this total was $2,-
332,632 with 68 lots sold during the year at $16,810 and total sales
to date of $196,885 ; a saw-mill had been erected and a water-
works system installed with progress reported in the general Ir-
rigation project of the Southern Okanagan. In the matter of y
Better Housing Funds, as to which the Federal Government, /
under special legislation, had allotted $1,361,521 to British Col-
umbia, Mr. Clark reported various advances — the City of Van-
couver $300,000, Victoria $140,000, Prince Rupert $100,000, North
Vancouver $74;500, Point Grey $94,000, Kamloops $60,000 and,
so on, down to $2,000 for the Municipality of Matsqui. Under
this Act 312 houses had been erected and completed and 40
houses were in process of erection, with various proposals under
consideration.
The Attorney-General, Hon. J. W. de B. Farris, had a
number of important matters within his jurisdiction. Robert
Baird, Inspector of Municipalities, reported, for the year of Dec.
31, 1920, an array of Statistics in this connection. The assessed
value of Taxable land for the year 1921 was $233,907,024, or a
reduction of $14,361,763; the Debenture Debt of the Municipali-
ties (Dec. 31, 1920) totalled $96,097,910, or an increase of $1,-
256,294; the Arrears of taxes were $8,248,455 compared with
$12,094,121 at the close of 1919; the receipts of Municipal taxes
in 1920 were $15,467,662, or an increase of $1,400,000; Sinking
Fund investments included $8,075,175 in Bonds, $156,956 in Mort-
gages and $5,183,332 in Municipal Debentures — the latter not
recognized by statute. Including cities and municipal districts,
the Waterworks of the Province showed a Plant value of $16,-
702,630, total revenues of $1,439,725 and a net loss on operation
of $272,540. The first annual Report of the Superintendent of
Neglected Children (Nov. 30, 1920) showed 985 under care in
868 THE CANADIAN ANNUAL REVIEW
Vancouver during the year, with $8,473 of expenditures and Gov-
ernment grants of $13,000 made to various Societies caring for
destitute children. D. B. Brankin, the Superintendent, also re-
ported as to Mothers' Pensions with 636 pensions granted to
date and totalling $118,489 in amount. In the House, on Feb. 15,
Mr. Karris stated that "in classifying the applications filed, we
find that out of 1,000 cases 665 are widows, 203 are deserted
wives, 76 have husbands who are incapacitated from various
causes, those confined in Mental Hospitals number 25 and in
prison 5, and there are 15 divorcees, with 7 unmarried mothers."
A little later administration of this Act was placed under the
Workmen's Compensation Board. The Superintendent of In-
surance reported to Mr. Farris for the year 1920, 132 Fire Com-
panies under license and $2,635,532 of Provincial Fire losses in
the year with Net Premiums of $3,369,577 and net amount of
losses, paid, $1,096,566. The Life Insurance Companies totalled
54 with Premiums for the year of $5,847,803, amount in Force
$171,649,828 and claims paid of $1,450,503. The B. C. Retail
Merchants' Association asked the Attorney-General for various
changes in the law (Feb. 8) — chiefly as to small Debt collection
and garnishees. Mr. Farris had supervision of the Provincial
Game Conservation Board, and reported to the Legislature for
1920 the receipt of $137,587 from game and hunting license fees
and the tax on furs. It was stated that grouse were becoming
scarce in the Province, while pheasants were fairly plentiful, and
moose, caribou, elk, mountain sheep and deer were holding their
own ; black bear were increasing and cougars also. The follow-
ing were the chief fur-bearing animals trapped during the year:
Weasel 43,489, muskrat 46,103, marten 11,446, with big game
killed totalling 1,023 Deer, 242 Moose, 231 mountain sheep and
goats, 114 Caribou, 996 Bear.
New Game regulations were issued by the Minister on July
28 for the year 1921, with Dr. A. R. Baker, Chairman of the Con-
servation Board, in charge of the protection of Big Game. Dur-
ing the year frequent references were made by the Opposition in
the Legislature to Dr. Baker — who had been a prominent Lib-
eral and was President of the Vancouver Liberal Association
and, eventually, Mr. Farris had to suspend the official and accept
his resignation, under appointment of a Commission of Enquiry,
on Nov. 24. As Minister of Labour, Mr. Farris had oversight of
the Minimum Wage Board, the Workmen's Compensation Act
and, also, of the Moving Pictures Censor Board — as to which
latter a large Deputation asked him, on Oct. 29, to have tighter
regulations made in the interest, especially, of children. An in-
cident of the year was an arrangement made as to the British
Columbia House — the headquarters in London of Emigration
action and of the work of the Agent-General, F. C. Wade, K.C.,
— by which a portion was leased to the Dominion Government
for $15,000 a year and other changes made so that it came to re-
present an asset rather than a burden as it had been, financially,
THE BRITISH COLUMBIA GOVERNMENT IN 1921 869
for some years— though always a splendid advertisement for
the Province.
Other incidents included a Convention of the Provincial
Uvil Service Association in Victoria (July 23) with N. R. Brown
of Vancouver in the chair, (who was re-elected President),
and a Resolution passed to take advantage of the Superannu-
ation Act, and to elect representatives of the Civil Service to
deal with the Civil Service Commission as to its working. A
terrific flood-wave, 70 high, on Oct. 28, swept the mining town
of Britannia, 50 miles north of Vancouver, carried away 50
houses, killed 36 persons and injured 15; arrangements were
made by Hon. Mr. Pattullo, when in London, for 1,000 families
to come to the Province and settle on the 200,000 acres under
reserve north of the G.T.P. Railway in the Stuart Lake country;
during 1920,. automobiles numbering 29,092 were said to have
crossed the United States boundary line into British Columbia,
and to involve at least 116,000 visitors for places like Vancouver;
the appointment took place of W. D. Carter, K.C., as Deputy
Attorney-General of the Province and John Keefe, CX-M.IV.A.,
as Clerk of the Legislative Assembly with the election of A. M.
Whiteside as President of the Vancouver Bar Association, and
of Sir Frank Barnard as President of the B. C. Division Red
Cross Society. The new Census returns showed a British Col-
umbia Population of 524,582 as compared with 392,480 in 1911,
with Vancouver increasing by 16,000 and Victoria by 7,000 in
that period.
The 1st Session of the Legislature in 1921. The Olivefl
Government had 26 Liberal supporters in the Legislature elect-
ed during 1920; against it, at times, were 4 Independents and
4 Labourites ; against it, always, were the 13 Conservatives
under W. J. Bowser. The Bye-election of Feb. 3rd, 1921, caused
by Mr. Premier Oliver being elected in two constituencies,
brought in A. M. Paterson (Lib.) of Ladner, by a majority of
676 over F. J. A. McKenzie (Cons.) who had, previously, rep-
resented the riding; the contest was a vigorous one with all
Ministers and Opposition leaders taking part. The 1st Session
of the 15th Legislature was opened by Lieut-Governor W. C.
Nichol on Feb.^ 8 with a Speech from the Throne which first
referred to the Prohibition Referendum of 1920 under which the
electors had voted as to continuance of the Prohibition Act or,
in substitution therefore, a sale of liquors in sealed packages
under Government control with the statement that legislation
would be introduced to give effect to the decision in favour
of the latter policy.
His Honour added that the Government, "through its Land
Settlement Board, has let a contract for the construction of
dykes to protect a large area of land at Sumas in the Fraser
Valley"; that in this connection of aiding Agriculture, under
the provisions of the Land Settlement Act, creameries had been
established to encourage the dairying industry; that a sum of
870 THE CANADIAN ANNUAL REVIEW
money would be needed for subsidizing the use of explosives
in the clearing of land for agricultural purposes and to assist
the bona fide mineral prospector ; that preceding legislation deal-
ing with the matter of Irrigation was proving efficacious with
the solution of the Irrigation problem now assured and the
Irrigation project in South Okanagan District advanced con-
siderably ; that on the initiative of the Government a Conference
had been arranged with the U. S. Bureau of Mines, to take place
in September of this year, as to the standardization of mine
rescue work and apparatus; that the system of Correspondence
Schools introduced by the Department of Mines had received the
approbation of numerous residents of mining districts who de-
sired to qualify for positions of greater trust and responsibility ;
that work on 'the Trans-Provincial Highway had been carried
on during the year, and that three important links had been com-
pleted. Legislation was promised along certain specific lines.
Meanwhile, Mrs. Ralph Smith had declined to be nominated
for the Speakership and Alexander Malcolm Manson, B.A., M.L.A.
since 1916, was elected by acclamation. The Address was moved
by Capt. Ian McKenzie, Vancouver, and H. G. Perry, Fort
George. The latter, in his speech, dealt with the riches and
resources of his immense riding of 108,000 square miles and then
handled Prohibition without gloves : "Under it we have been law-
breakers. It has proven a farce and a humbug, and the new
Government Control Act must be so drafted that the bootlegger
will disappear. British Columbia should not become a second
Monte Carlo, or the Premier of the Province another Prince of
Monaco." Dealing with the Peace River region, Mr. Perry stat-
ed there were 74,000,000 acres of land in that country and of
this amount 30,000,000 acres were in British Columbia : "One-
third is classed as good farm land; wheat yields 30 to 50 bushels
per acre, and there has never been a crop failure ; oats yield 70
to 100 bushels per acre and Oil seepages are found in various
places ; timber is abundant and minerals abound."
J. W. Jones of South Okanagan gave the Conservative view
of conditions. He denounced the road work as all tied up by red
tape, the farmers as without relief and the roads of the Province
a series of mud and pitch holes ; declared that the Civil Service
of a Province with 500..000 people cost $3,212,000 a year; de-
nounced the importation of $20,000,000 worth of food stuffs that
could be raised at home ; described the present Banking system
as against the best interests of the farmers who could not secure
loans necessary to carry on development work. After speeches
by the Premier and Hon W. J. Bowser, Opposition Leader, and
other?, the Address passed in due course. Incidents of the Ses-
sion included the passage of a Bill recognizing and regulating
the practice of Optometry. and rejection of a Labour amendment
proposing to establish the six-hour day (from bank to bank) in
the Coal Mines of the Province.
The Constitution Act was amended to provide increased in-
demnities to members of the House with the salaries of
THE BRITISH COLUMBIA LEGISLATURE IN 1921 871
members raised from $1,600 to $2,000; the Premier's salary from
$7,500 to $9,000, the Opposition Leader from $1,500 to $2,000,
and the Ministers' salaries from $6,000 to $7,500; the only op-
position was from Mr. Bowser, who, on Apr. 1st, attacked the
Government, accusing them of insincerity and extravagance in
voting themselves salary increases at a time when thousands of
men were out of work, and hospitals and municipalities em-
barrassed for lack of funds. A measure was passed placing
chiropractors and drugless healers under the provisions of the
Medical Act with the necessity of passing an examina-
tion satisfactory to the Medical Council in a large num-
ber of subjects enumerated in the Act; another Bill
ratified the agreement with the B. C. Anti-Tuberculosis So-
ciety for taking over and maintaining the Tranquille Sanatorium
as a Provincial institution for the care of tubercular patients;
a Loan Act was passed to borrow $400,000 to reimburse the B. C.
Electric Railway Co. as the cost of changing tracks and equip-
ment in order to adopt the "turn to the right" principle on the
highways.
An Act to permit municipally-owned Cemeteries, Crema-
toriums and Mausoleums authorized the creation of a Board of
Cemetery Trustees to manage such institutions, to borrow
money, and to establish a Fund for their perpetual upkeep ; the
Companies Act was amended and consolidated in the light of ten
years' experience, with various changes adapted from improve-
ments in the English Act, and with special revisions in the pro-
vision? relating to extra-Provincial Companies as a result of the
Privy Council decision in this respect ; an Act relating to Trust
Companies dealt with rights and powers of Provincial incorpora-
tion, placed the Share capital at not less than $250,000, restricted
the borrowing powers of the Directors to 40 per cent, of paid-up
Capital, ordered the deposit of a sum ranging from $25,000 to
$200,000, in trust, upon legistration and as security for its con-
duct of business, made a yearly certified report to the Govern-
ment necessary and enacted rigorous rules as to the manage-
ment and investment of Trust moneys and moneys received on
deposit, and provided for official Government inspection at stated
periods. The Elections Act was amended in various details and
a number of other laws were changed in some specific item or
phrase ; a minimum age for admission of children to Industrial
employment — not including agriculture, horticulture or dairying
— was fixed at 14 years for male children and 15 for females.
The Hours of Work Act, with certain specified exceptions,
enacted that "the working hours of a person employed in any
public or private industrial undertaking or in any branch there-
of, other than an undertaking in which only members of the
same family are employed, shall not exceed 8 in the day and 48
in the week," and was to come into operation by Proclamation
concurrently with similar legislation enacted by other Provinces
of the Dominion; the Act relating to Devolution of estates in
872 THE CANADIAN ANNUAL REVIEW
Land was consolidated and amended into a Land Registry Act
under which Land investments, conveyances, etc., were greatly
simplified; subdivision plans were defined, restricted and elabor-
ately dealt with in all details ; registration in fee simple, trans-
fers of land, tax sales, caveats and Assurance fund were dealt
with in the fullest measure. Amendments to the Forest Act gave
the Minister of Lands power under certain conditions to take
a bond of $50,000 and authorized him to declare any specific area
a pulp district in order to bring the manufacture of woodpulp or
paper and the conservation of timber under control of the De-
partment; made the issuance of pulp licenses and the reserva-
tion and sale of Crown timber subject to the approval of the
Minister ; authorized the Minister to enter into agreements with
corporations having power to operate pulp-mills in the Prov-
ince as to all moneys in arrears for fees, taxes, etc.
The B. C. Loan Act was approved and permitted the borrow-
ing of $3,550,000 for specific purposes including $1,100,000 for
the Soldiers' Land Act, $300,000 under the Forest Act, $1,000,000
for credit of the Conservation Fund under the Water Act, and
$400,000 for the B. C. Electric Railway Co. The Pacific Great
Eastern Construction Loan Act authorized the Government to
borrow $4,000,000 to lend the Railway Company for (1) the re-
payment of moneys expended by the Government, and (2) for
construction, equipment and operation of the Railway. Another
Act passed, dependent for Proclamation upon similar action by
other Provinces, forbade a woman employed in any commercial
or industrial undertaking, from work during the six weeks fol-
lowing her confinement and forbade her employer dismissing the
woman on account of this absence; the Coal Mines Act was
amended as to the use of locked safety lamps and the Mini-
mum Wage Act as to the work of women over 18 years of age.
Another measure enacted that "women without distinction of
age shall not be employed during the night in any public or
private industrial undertaking, or in any branch thereof, other
than an undertaking in which only members of the same family
are employed," and a similar Bill applied the same enactment to
young persons under 18 years of age. By special Act, the City
of Phoenix was disincorporated and its Letters Patent annulled
with all debts and taxes paid. The Water Act was largely
amended to facilitate Irrigation plans and waterworks. An
elaborate Act of a technical nature related to the Corporation
of the City of Victoria. The important Liquor Control Act is
dealt with separately. The Legislature was prorogued on Apr.
2nd after disposing of 85 measures.
The 2nd Session of the Legislature in 1921. This Session
was opened by His Honour W. C. Nichol, on Oct. 18 with a
Speech from the Throne which first stated that during the
recess investigation had been made into the financial conditions
of the Municipalities, and legislation would be submitted pro-
viding for extension of the sources of their revenues ; promised
THE BRITISH COLUMBIA LEGISLATURE IN 1921 873
amendments to the Taxation Act in order to apportion more
equitably the burden upon all classes of property and persons;
estimated that the financial provision made at the last Session
for the P. G. E. Railway would prove adequate for the com-
pletion of the Line to Prince George; mentioned that valuable
information respecting a feasible route to connect the Coast with
the Interior links of the Trans-Provincial Highway had been
assembled and would permit decision of the route and early
undertaking of construction ; promised a Bill for the better in-
vestigation and prevention of fires, with minor amendments to
the Government Liquor Act and other measures.
The Address was moved by J .B. Clearihue of Victoria and
A. M. Paterson of Delta, and was debated at length. Mr. Bowser
criticized the Government in detail and with intimate knowledge
of the details ; G. S. Hanes returned to his yearly attack regard-
ing P. G. E. Railway finances and conditions. Hon. J. D. Mac-
Lean defended the Civil Service salaries and declared that new
Departments added since 1915-16 accounted for $156,250 of the
increase, while the scale of salaries paid in 1920-21 was about 32
per cent, greater than the scale paid for similar work in 1915-16;
that the increase in salaries outside of the Service was very
much greater and the rise in the cost of living greater still, and
maintained that a total of $2,800,000 was not an unreasonable
advance upon the $2,100,000 of 1915-16. J. A. Catherwood
(Cons.) denounced the Government for not aiding the settlers
of Niromen Island when the floods in 1920 caused them a loss of
$140,000 with a similar amount in 1921.
He moved, on Nov. 3rd, an amendment to the Address de-
claring that : "This House regrets the attitude of the Govern-
ment towards the petition of settlers in dyked areas for effective
action towards securing their dykes against destruction by
erosion of river banks." Mr. Bowser and the Opposition sup-
ported the Resolution, but it was voted down by 26 to 12, and
the Address then passed. During this debate the P. G. E. Rail-
way was a constant source of discussion, and, on Nov. 3rd, Mr.
Premier Oliver spoke at length upon the matter and hit back
at the Opposition leader for his many attacks of this and the
preceding Session, by claiming that when Mr. Bowser was Pre-
mier : "The P. G. E. Company bought the Colmer and Borland
ranches at Williams Lake, and Bowser, Reid & Wallbridge re-
ceived $1,000 for passing the title. I hold in my hands 15 other
P. G. E. agreements. They were all handled by the firm of
Bowser, Reid & Wallbridge."
During the earlier Session various attacks had been made
upon Dr. A. R. Baker, Chairman of the Game Conservation Board
and a prominent Liberal. On Nov. 14, R. H. Pooley (Cons.) made
a series of specific allegations. He charged Dr. Baker with
(1) the use of Government motor cars and launches for his
own personal needs; (2) with using Government moving-pic-
tures for political purposes and selling Government pictures to
874 THE CANADIAN ANNUAL REVIEW
Japan without accounting for the funds; (3) with supplying
pheasants in large numbers, raised at the expense of the people,
to his own preserve ; (4) with wasting public funds and wrong-
fully hiring and dismissing men and illegally paying them in
cash without vouchers; (5) with falsifying the records of this
House; (6) with being in collusion with a certain firm in Van-
couver in the illegal buying and selling of beaver skins for per-
sonal gain; (7) with buying and selling beaver skins for his
own personal use and benefit. There were a number of other
similar allegations and Mr. Pooley demanded, by Resolution, a
Select Committee of Enquiry into the whole matter; Mr. Farris,
Attorney-General, moved an amendment asking the Lieut.-
Governor to appoint a Royal Commission, and, after a heated
debate, this was carried by 22 to 20 (Nov. 17) with 5 Independ-
ents and 2 Liberals supporting the Opposition. Meanwhile, Mr.
Farris had suspended the Chairman and the Chief Game Warden
and, on Nov. 24, H. C. Shaw, a Vancouver Magistrate, was ap-
pointed Commissioner to investigate the matter; Dr. Baker at
once tendered his resignation to apply irrespective of what the
result might be. Many witnesses were heard in the next month
or so, but no decision was reached at the close of the year.
During the Session Major R. J. Burde tried to get through
a Bill to amend the Hours of Work Act passed at the previous
Session, providing for an 8-hour day in industries and sought to
make it effective on May 1st next instead of after other Prov-
inces had taken similar action; he frankly obstructed proceed-
ings in order to get a direct vote on the subject and, finally, met
defeat by 24 to 15 while Labour members moved a clause of this
kind in respect to 5 other Bills only to be defeated on division.
The Government and the Opposition leader both voted against
the proposal. A Resolution, on Dec. 1st, describing the growing
importance of the Peace River and Fort George Riding, in par-
ticular, and asking for more representation, was answered by a
Government amendment stating the desirability of a general
"Redistribution of seats with regard to population, area, geo-
graphical position and community of interest." This was car-
ried by 29 to 13. A Government Resolution, which passed unani-
mously on the. same day, stated an understanding with the Do-
minion Government at a Conference in 1919 that the latter would
introduce legislation as to Old Age Pensions and urged the
Federal authorities to carry out this pledge or understanding.
On Dec. 2nd the Select Committee on Agriculture, with Dr.
K. C. MacDonald as Chairman, reported to the House and urged
(1) an increase in the agricultural population of the Province;
(2) deprecated the competition of Orientals in production and
in the acquisition of large tracts of fertile land; (3) suggested
further extension of the Farm Loan system and the establish-
ment of reservoir stock farms under the Land Settlement Act ;
(4) urged the Government to adopt a land-clearing policy
through the Settlement Board, and asked for agricultural rep-
resentation on the Game Conservation Board.
THE BRITISH COLUMBIA LEGISLATURE IN 1921 875
Legislation of the Session included the usual large number
of amendments to existing Acts, in details too numerous to
mention here, with a rather elaborate re-adjustment and amend-
ment of the Boilers' Inspection Act and of that dealing with the
Sale of Goods in Bulk; an elaborate Act as to Fires and Fire-
escapes was passed which provided for the appointment of a
Provincial Fire Marshal, with assistants, for the investigation
and record of all Fires, for the inspection of Fire hazards and
facilities for escape from buildings, and for the establishment of
a Fire Prevention Fund through yearly contributions from Fire
Insurance Companies. The Forest Act was amended so as to
provide for the disposition of timber either by public auction or
public tender ; certain old leases which carried a low rental and
a low royalty and had not been changed into perpetual licenses
were given until Mch. 31, 1922, to exchange leases for licenses
upon payment of $1.00 per acre, and would thereafter pay the
current license fees and royalties. It was made clear that a pulp
license stood in the same position as an ordinary timber license
in case of failure to pay prescribed fees. An extension of time
was granted for survey of unsurveyed license districts, pulp-
wood was defined and provision made that all timber from pulp
licenses used for pulp purposes were to pay pulp royalty, while
all timber put through the saw-mill would pay saw-mill royalty.
Provision was made to bring all the scaling service into the Civil
Service.
An Act was passed authorizing a $5,000,000 Loan at 6 per
cent, for Land Settlement purposes and the Public Service. Some
rather important, though brief, amendments were made to the
Companies Act, the Co-operative Associations Act, the Health,
Highway, Infants, Land Registry, Land Settlement, Land, Min-
eral Placer, Mining, Mothers' Pensions, Motor Vehicle, Muni-
cipal, Succession Duty, Taxation and Trustee Acts. Amongst
the Private Acts the revision and consolidation of the Van-
couver Charter was the most important. The Act to provide Aid
to Municipalities was the product of long discussion, and it
evoked expressions of dissatisfaction from the Municipalities.
It provided that the Minister of Finance should assist the Muni-
cipalities of the Province by paying to them a sum equal to one-
third of the aggregate of the annual license fees hereafter col-
lected under the Motor Vehicle Act and, also, an amount equal
to the aggregate of taxes collected under the Amusement Tax
Act in respect to betting at race-meetings by the Pari-Mutuel
system. There was, also, the S0% Profit clause in the Liquor
Act. The Amusements Tax Act was amended so as to charge
on all Pari-Mutucl race tracks a tax equal to 10 per cent, of the
price of admission or, when no admission was charged, a tax of
10 cents.
The Act to assess, levy and collect Taxes on Income and
Personal Property made all personal property within the Prov-
ince and all income of every person resident in the Province and
876 THE CANADIAN ANNUAL REVIEW
such property or income held or earned within the Province by
persons not resident, subject to assessment and taxation. The
rates on Net Income ran from 1 per cent, up to $2,500, 2 per
cent, additional upon $1,000 up to $3,500, 3 per cent, additional
up to $4,500, 4 per cent, additional up to $4,500 and so on by
similar stages up to 10 per cent, upon the difference between
$9,500 and $10,500— after that the rate was \2y2 per cent, upon
amount by which the Net income exceeded $10,500 and did not
exceed $19,500 with special rates above this income. There were,
also, provisions for yearly returns and enforcement. In the per-
sonal property part of the Act there were many exemptions —
property in transit, household furniture, wearing apparel, books,
pictures, produce of the land or property used in business, saw-
logs and items held under license, property of all public institu-
tions, etc. ; all corporations were made subject to a taxation of 2
per cent, on gross income including public utilities, Loan, Insur-
ance and other Companies, while special rates were levied on
Banks including $3,000 upon the chief banking office or agency
in the Province and $500 for every other Provincial branch ; as-
sessment rolls and Courts of Revision were provided and condi-
tions for recovery of taxes. The House was prorogued on Dec.
2nd and shortly before this Dr. W. O. Rose, Conservative member
for Nelson, and M. A. Macdonald, K.C., Liberal member for Van-
couver, resigned to accept nominations in the Federal elections.
The unsatisfactory operation of Prohibition in
B. C. Gov- 1920; the difficulties of controlling the import or ex-
emment port of liquor under local conditions; the fact that a
Control of great many, probably a majority of the people, were
Financial opposed to it, made some other policy or line of action
Affairs* and seem necessary ; interjected into the situation was the
Mr. Hart's continuous criticism and attack upon the Govern-
Budgets. ment by Mr. Bowser and the Opposition for alleged
non-enforcement of the law; there was, also, the fact
of the Moderation League being strong and its activities incessant
while returned soldiers, clubs and various organizations were in-
sistent upon the right to use and sell beer or wine. In the Legis-
lature on Feb. 11 the Hon. John Oliver moved the House into
Committee and explained the Resolutions for discussion.
He recited the facts leading up to the submission of the Pro-
hibition Referendum in 1916, claimed the will of the electors of the
Province on that issue had been defeated by fraudulent practices of
agents of the late Government who took the vote overseas ; referred
to the dissatisfaction which developed over the Prohibition measure
and was expressed in the result of the recent Plebiscite. He did
not interpret the result of the poll as an instruction authorizing the
return of the bar or the drinking saloon, but rather as an instruction
to make available, for use, spirituous and malt liquors in reasonable
quantities, at a reasonable price and subject to reasonable restric-
tions. Under the existing system, boot-legging was rampant and
BRITISH COLUMBIA GOVERNMENT CONTROL OF LIQUOR 877
bitter complaint was made by the Municipalities because they had
been deprived of the revenue from Liquor licenses and yet were
compelled to enforce the Prohibition Act. The Government felt
that the Municipalities had the police, the machinery and the
knowledge of local conditions which it would be impossible to
duplicate and that they could best ensure the sympathetic co-opera-
tion of the Municipalities by making it to their financial advantage
through receipt of a percentage of profit arising from the operation
of the new system — say 50 per cent. The broad details of the
proposed Act were given as administration by a Commission, with
Government Liquor stores, and a system of permits; questions con-
cerning Clubs, the handling of beer and supply of liquors to visitors
were not dealt with. In its presentation of this general policy the
Government took a rather unique line and, in order to insure non-
party action it proposed that the House should petition the Lieut. -
Governor to present a Bill embodying a reasonable and moderate
policy. Mr. Bowser and the Conservatives protested against this
action as unconstitutional but on Feb. 16 the Petition was passed
by 29 to 14 — seven Independents voting with the Government.
There was, of course, wide discussion of what was called the forth-
coming Moderation Bill; the Government did its best to have the
legislation non-political, but without success as the above division
proves. On Feb. 23 Hon. J. W. de B. Farris introduced the
Government Liquor Act in a careful speech which reviewed the
measure in detail ; the law as to drunkenness was made drastic and
Permits were surrounded with every sort of safe-guard; Inspectors
were given wide powers and enforcement was made obligatory upon
Municipalities; severe penalties were imposed for infractions of the
Act — a first offence as to illegal sale of liquor carried a six months'
term of imprisonment with hard labour; a 2nd offence could mean
12 to 21 months' imprisonment with hard labour; if the offender
was a corporation, a fine of $1,000 could be levied for a first offence,
with a 2nd one leaving the offender open to a fine of not less than
$2,000 and not more than $3,000. In the case of individuals vio-
lating sections of the Act, other than by illicit sale, a third offence
involved imprisonment for from 3 to 6 months without option of a
fine. The details may be summed up as follows :
1. Permanent residence permits to cost $5.00 per annum and non-
residents to pay $5.00 for 30-day permits ; temporary permits to cost 5
cents.
2. One auart bottle the limit of single purchase; uniform prices
throughout the Province and consumption of liquor permitted guests
in Hotel rooms.
3. Drunkenness in any place to constitute a punishable orrence
and no drinking in public places allowed, with no display signs permitted
as to sale of liquor.
4. "Sealed package" to mean anything from a bottle to a barrel; a
tax of $2.50 per quart upon all liquor not bought from Government and
hereafter imported.
5. Existing private stocks to be marked by Government stamp and
warehouses to pay license fee of $3,000 per annum.
6. Government stores open 8 hours daily; closed on holidays and
election days and no liquor sold to those under 21 years of age.
878 THE CANADIAN ANNUAL REVIEW
7. Offence against the law for host to permit drunkenness in his
home and excessive drinking to lead to loss of permit through inter-
diction.
8. Inspectors given right oi entry and search and municipalities to
receive half of profits.
As to details the Permits were of three kinds — residents of
Province good for one year; special and limited in amount for
persons only desiring to make a single or occasional purchase; a
non-resident Permit for visitors from outside of the Province.
The Liquor Control Board was given the widest possible powers sub-
ject, however, in their use and in fresh regulations, to Government
approval; the Commissioners were subject to removal for cause.
All liquor purchased under permit from a Government liquor store
must be in a sealed package, which could not be opened on the
premises. In the House on Feb. 24 the Premier stated that: "The
whole intent of the Act is to put the sale in the hands of the Govern-
ment so that people may obtain liquor under certain conditions
which will prevent its abuse and illicit traffic. The high taxes on
wholesale houses are to help us overcome constitutional difficulties
about private importation. The tax of $2.50 a quart on imports is
made designedly heavy so as to be prohibitive of importation."
On Feb. 28, in a crowded House, Hon. W. J. Bowser dealt with the
Bill. He first declared that the Government had been compelled
to take the "constitutional course" of bringing it in as a Government
Bill; the Conservatives now would help in getting a satisfactory
measure through.
But he criticized the Government for failure to provide for the
appointment of a non-partisan Board of Control, asserted the 50-
cent permit was a provision under which the bootlegger would
flourish and that, under the guise of special permits issued by a
partisan Board, the prohibition against drinking in public places
could easily be got around. In Quebec the Board was non-partisan ;
here he had grave doubts as to the matter. He claimed that unless
Ottawa passed legislation, the new Bill would not enable the Pro-
vince to stop importations of liquor ; that in any case the provision
for a $2.50 tax on liquor imported and not stamped was ultra vires
of the Province. Elaborate debates and much dissussion followed
but, finally, the 3rd reading was passed on Mch. 31. A strong and
repeated effort was made to permit Hotels, Clubs, etc., the right to
sell Beer but on Mch. 23 the House by 32 to 12 adopted an amend-
ment by M. B. Jackson to the effect that no one, other than a
Government vendor, should sell or deal in any liquid known or
described by any name commonly used to describe malt or brewed
liquor; it also voted down Ian Mackenzie's amendment to raise the
limit for non-intoxicating liquors from one per cent, alcohol by
weight to two per cent. — supported by Messrs. Pattullo, King, Hart,
Sloan and Farris of the Government; on the 31st another amend-
ment by Thomas Uphill in favour of a Beer clause was rejected by
36 to 11 despite his claim that the Bill made it easy to get hard
liquor and difficult to get good beer.
BRITISH COLUMBIA GOVERNMENT CONTROL OF LIQUOR 879
As finally decided, the Government Liquor stores were to sell
beer as well as whiskeys and wines — but not by the glass. On Apr.
13th the composition of the Liquor Control Board was announced
as including A. M. Johnson., K.C., who resigned his position as
Deptuty Attorney-General, (Chairman), J. H. Falconer, a business
man of Vancouver, and Lieut.-Col. W. N. Winsby, Inspector of
Schools, Victoria; the salary of the Chairman was to be $6,500
and of the two other Commissioners $5,500 each. On May 16
James Paterson was appointed Purchasing Agent for the Board at a
$400 monthly salary. The B.C. Prohibition Act went out of opera-
tion on June 15 and Government control, under the new Liquor Act,
took its place; six liquor stores were at once opened in Vancouver
and Victoria and it was announced that the store hours for liquor
sale in Coast cities would be from 11 to 12 a.m. and 1 to 7 p.m.,
every week day and in up-country towns the same from Monday to
Friday and on Saturday from 1 to 8 p.m. It was planned to absorb
part of the charge of $1.65 upon liquor involved in the new Federal
tax and the intention was that there should be one liquor store at
least in every electoral riding, though if the people of any riding
objected strongly the Board would not force one on them.
It was stated that all persons in British Columbia who had
whiskey or other liquors, not bought from the Government, in stock,
must send in to the Liquor Board, before July 15, a statement of the
quantity and kind; the Veterans' Clubs, which had worked strongly
for beer-selling licenses, announced on July 23 that they would A
continue selling beer to bona fide members, while the Attorney-
General replied that the law would be enforced. On June 27 one of
these Clubs was raided in Vancouver and one in Fernie, on July 7
four others in Vancouver, with several people arrested, and others
in Victoria; the G.W.V.A. decided to fight the issue and, if neces-
sary, carry it to higher Courts ; local Police Courts found a number
of the parties to the raids guilty and Army and Navy Veterans
in Victoria appealed to the Supreme Court for a writ of prohibi-
tion against a local Police Court decision; Sir. C. H. Tupper, K.C., ^
appeared for the Veterans and contended (July 29) that the
Government Liquor Act constituted a monopoly in creating
a Board to control the sale of liquor and that such a provision was in
restraint of trade and therefore, conflicted with the B.N.A. Act.
Mr. Justice J. A. Macdonald, however, did not accept the plea and
dismissed the case. In the Police Court (Aug. 6) H. Despard
Twigg, for the Veterans, admitted all the facts as to beer-selling but
argued that those facts did not constitute a sale of beer within the
meaning of the Act, but only a distribution of property of members
amongst members of an incorporated organization; this was not
accepted, however, and the Club, as a corporation, was fined $1,000.
The case was appealed and on Sept. 6 Mr. Justice Murphy decided
in favour of the Veterans and of Mr. Twigg' s contention.
Meanwhile the Prophibitionists were not idle in face of these
decisions and of the lavish advertising appeals by the Moderation
League for a right to sell beer by the glass; they were handicapped
880 THE CANADIAN ANNUAL REVIEW
by the lack of an organ — the Vancouver World having been acquired
by the Liberals since the last voting on this issue. At Victoria on
May 23 a Committee Report to the local Methodist Conference was
accepted; it declared that the people had instructed the Government
to provide an adequate control of the drink traffic and not to permit
"the sale of liquor in unlimited quantities and for the purpose of
raising revenue." The Rev. Dr. Sipprell, a Methodist Minister
of Victoria, put the issue as follows on June 12: "The Government
for the first time in this Province, takes the Liquor traffic out of the
hands of private management and puts us, as electors, in the position
of being engaged in the buying and selling of liquor." On Oct. 25-26
the People's Prohibition Association held a Convention at Van-
couver with many representatives of W. C.T. U. organizations
throughout the Province, members of the I.O.G.T. and Royal
Templars of Temperance present, and 468 delegates altogether.
The Secretary, Rev. W. G. W. Fortune, declared the present Act
doomed to failure and the objectives aimed at by the Convention
were described as (1) Repeal of the Act and prohibition of sale
within, or importation into, the Province of liquor for beverage pur-
poses ; (2) due observance of the Prohibition law as it shall assuredly
be this time enacted; (3) the securing of complete Dominion Pro-
hibition. G. O. Buchanan of New Westminster was elected Presi-
dent in succession to William Savage, and a Committee of 100
selected from all over the Province to press the issue of Prohibition.
At the 2nd Session of the Legislature there were some heated
debates upon the Act and its enforcement. On Oct. 27 W. J.
Bowser, K.C., attacked the Attorney-General in a long speech in
which he claimed that mal-administration was creating conditions
similar to those which existed under the Prohibition Act ; he claimed
that poor liquor was being sold, that former bootleggers were being
given positions and in one case, appointed in charge of a Govern-
ment store, that there was a "liquor-ring" surrounding the Attorney-
General with certain Liberal stalwarts named as members. He
proposed the appointment of a Select Committee to investigate
these and other charges. In his reply, Mr. Karris stated that all
liquor was purchased for the Board by the Agent, James Paterson,
who had been recommended by Mr. Bowser, himself , for the posi-
tion; he submitted a long list of the firms from which liquor had
been purchased, the quantities, the kinds and the price. Mr.
Farris protested earnestly against these vague and general charges
and asked: "What is there in political life in this Province good
enough to have to stand for this sort of thing? There is nothing
this Province has to offer in public life to induce a man to endure and
go through the kind of thing I have had to face for the last three
years?" On the 28th Mr. Premier Oliver moved, seconded by D.
Whiteside (Ind.) an amendment that the Opposition leader
should submit "definite and specific charges of alleged wrong-doing
directed against the person or persons so charged" in order that
there should be a real enquiry, and this was carried by 24 to 18.
On Nov. 13, a large Delegation led by H. Bell-Irving, President
of the B.C. Moderation League, waited upon the Government and
FINANCIAL CONDITIONS; MR. HART'S BUDGET SPEECHES 881
urged provision for the sale of beer by the glass in regularly-appoint-
ed places. In the House on Nov. 30, during the 2nd Session, Ian
Mackenzie (Lib.) moved a Resolution favouring a Bill to permit the
sale of beer by the glass in standard hotels and bona fide Clubs under
licenses issued by the Liquor Board and subject to an approval
majority vote at a Referendum to be taken upon the question.
This was carried by a large majority and then the Speaker ruled the
proceedings out of Order as touching public moneys and, therefore,
requiring £ Government measure. At the same time the House
rejected an amendment to the Liquor Act embodying a Beer clause
similar to the above. The Opposition, led by Mr. Bowser, had
walked out of the House when the Referendum matter was present-
ed as a protest against the Government not assuming responsibility
in the premises; the Government had offered to take that course if
the Opposition would not make the vote a party one or a want of
confidence policy; the following voted for the Beer Referendum
(chiefly Liberals) Messrs. MacLean, Pattullo, Hart, Barrow, Kergin,
Sloan, Karris, Oliver, King, Sutherland, Anderson, K.C. MacDon-
ald, Yorston, Perry, Paterson, I. Mackenzie, Burde, Uphill, Dun-
can.
The Government had, at this time, introduced certain amend-
ments to the Liquor Act. These amendments were intended to
tighten up the Liquor Act and they passed in due course. The
definition of "sale" was enlarged and cleared of doubtful meanings
'and the personal prohibition as to selling was defined and em-
phasized ; the labelling of all bottles of beer with name and place of
the brewer was ordered, and so as to barrels ; the manufacturer was
permitted to purchase and import in bond from any licensed Can-
adian distiller such liquor as was required for his business. During
these months the sale of liquor by the Government stores had been
steadily increasing with, in September, an estimated average profit
of $40,000 a week. The official Report of the Liquor Control
Board to Sept. 30, stated the Assets at $2,502,741 — including stock
in hand of $1,849,477; the Liabilities at $1,961,135 of which $1,-
438,650 was in advances from the Provincial Treasurer,- $313,346
in trade accounts, $184,753 in confiscated liquors and $541,606
in undivided profits; the Liquor sales of the period had totalled
$2,228,918. At the close of the year a strong effort was made to
deal with the Club difficulty. On Dec. 10, 18 hotel bars had been
reported to have opened in Vancouver with the sale of beer to
members of so-called Clubs at a 10 cent fee. The Board, first of
all, checked the supplies of liquor by a limit of purchase to 24 pints
of beer a day; on the 15th licenses were taken from 12 clubs in Van-
couver and, at the same time, 30 of them were raided with more to
follow. On Dec. 23rd the steamer Eastern Merchant arrived at
Victoria from Hamburg and Liverpool with a shipment of 17,000
cases of spirits.
Mr. Hart's 1921 Budget Speeches. The Minister of
Finance in British Columbia delivered two Budget speeches during
this year. On Mch. 17 he made an optimistic presentation of
29
882 THE CANADIAN ANNUAL REVIEW
financial conditions though not without warning as to increased
taxation. For the year ending Mch. 31, 1920, the revenue collected
had been $2,293,600 greater than the estimated revenue for the
year, and $351,330 greater than the combined expenditures on both
current and capital accounts ; the estimated revenue for the ensuing
year was placed at $17,010,595 or an increase over the current fiscal
year of $3,032,350 with unexpectedly large returns from the At-
torney-General's Department, or in other words, from the Govern-
ment sale of liquor. Mr. Hart blamed the heavy burden of the
Pacific Great Eastern for the borrowings of the past few years and
anticipated more in the futue for the same purpose. No new taxa-
tion of any consequence was announced. One amendment changed
the taxation year for Income and Personal Property taxes from the
end of September to Mch. 31, with a penalty of one per cent, a
month on taxation arrears; the Mining companies of the Province
were given a long-sought concession in an allowance for depletion
of ores and a concession was given to timber holders in the equaliza-
tion of assessed values of Crown-granted timber limits.
The Province was living within its income which, at this period,
was an interesting statement: "By the balance sheet for the year
ended Mch. 31, 1920, it will be seen that there was an excess of
capital Assets over Liabilities to the amount of $9,534,726 and of
current Assets over Liabilities to the amount of $3,782,017 or a
total excess of Assets over Liabilities (capital and current) amount-
ing to $13,316,744." The funded Public Debt, as at Mch. 31,
1919, was $27,471,936 and on Mch. 31, 1920, the total was $34,071,-
936. Against this there were Sinking Funds amounting to $5,-
837,600, leaving the Net Debt at that date $28,234,335. Of the
$6,500,000 which was borrowed $5,450,000 was advanced to the
P.G.K. Company to continue construction, $300,000 to the Land
Settlement Board for the purpose of loaning to Agriculturalists and
$750,000 was loaned to municipalities under the "Better Housing
Act." Since the above Debt particulars, $17,000,000 more had been
borrowed of which $8,828,000 went into the P.G.E. Railway,
$61 1,000 to Better Housing and $1,000,000 for Land Settlement and
associated objects with temporary borrowings under Treasury
Bills of $7,360,000 — for Highways, P.G.E., University, etc.
The net Provincial indebtedness on Mch. 1st, 1921 was stated
at $46,000,000.
In his speech, Mr. Hart reviewed the agricultural Loan and
Deposit systems of Ontario and Manitoba, and hoped to present a
future policy along these lines to the Legislature. As to Arrears of
Taxes, the Minister stated that: "The total arrears, on Dec. 31,
1920, amounted to $2,768,439 or 30 per cent, of taxes levied, but
there had been cleaned up over $3,000,000 of arrears outstanding
when this Administration took office and which had been owing as
far back as 1904." The Audit system had proved a great success
and "since its inception in 1918, 1,310 audits have been made, at a
total cost to the Government in salaries and all expenses of $31,222
with a result of $1,652,932 added to the rolls as extra revenue
FINANCIAL CONDITIONS; MR. HART'S BUDGET SPEECHES 883
which would have been lost had not these audits taken place."
As to the controversy with the Municipalities — which continued all
through 1921 — Mr. Hart said: "Their difficulties are largely the
aftermath of the boom, accentuated by the years of war following,
and are not confined to this Province ; if a comparison is made with
the other Western Provinces, I believe the position of our Civic
bodies will be found to be encouraging."
As against the Minister's view and the Government's position
—which was modified in December by the grant of some special
Tax proceeds with, also, 50 per cent, of the Liquor returns — the
Municipalities claimed that the taxation system in the Province had
broken down, as proven in the 1920 Report of the Inspector of
Municipalities, which showed outstanding arrears of Municipal
taxation of $12,094,121 although millions of dollars of arrears had
been written off because the property had reverted to the municipal-
ity at tax sales with, also, a shortage in the Sinking funds of $5,-
289,012 due to illegal investments. Provincial loans during 1921
included $2,000,000 sold during March in Toronto to the highest
bid of 14 financial concerns at 103.77 for 5 -year, 6 per cent, bonds;
$3,000,000 5-year, 6 per cent, bonds payable in New York funds and
sold to Pacific Coast firms in April; $3,000,000, 20-year, 6 per cent,
bonds sold to A. E. Ames & Co., and Wood, Gundy, & Co., Toronto,
during June for P.G.E. Railway construction; $2,000,000 of 5-year,
6 per cent, bonds sold in New York during July; $1,000,000 of
20-year, 6 per cent, coupon gold Bonds sold in August in Toronto
with also $2,000,000, 25 year, 6 per cent, coupon gold bonds;
$1,000,000, 5 -year, 6 per cent, bonds sold in New York in Septem-
ber, with $2,000,000 of 25-year, 6 per cent, bonds to Wood-
Gundy, Toronto, early in October; $2,000,000 more of 20-year, 6
per cent. Bonds payable in the United States sold at the end of
October to Dominion Securities Corporation, Toronto, and resold
by them in New York.
The Minister's second Budget Speech was on Nov. 1 1 and was
prefaced by the statement that: "British Columbia is coming
through the troublous period of post-war reconstruction with less
friction and greater success, I think, than any other portion of the V/
Dominion. That this is so is a tribute to the Government of the A
day," and he pointed to the balance-sheet for the year ended Mch.
31, 1921, which showed an increase in capital Liabilities of $12,430,-
500 during the year and up to that date by the issue of securities.
"The funded Public Debt of the Province," (on Mch. 31, 1921)
said Mr. Hart, was $46,511,436, against which were Sinking Funds
of $6,981,432, leaving the net Debt of the Province as $39,530,003.
Since then, up to Nov. 1st, 1921, further sums had been borrowed
bringing the total funded Debt to $61,851,436, against which Sink-
ing Funds had accumulated of approximately $7,900,000, making
the net funded Debt at that date $53,951,436." This total Debt
was incurred for the following purposes: Consolidated Revenue,
$28,609,216; Land Settlement Board, $3,500,000; Dyking debentures
$445,000; P.G.E. Railway, $18,330,720; Public Works and roads,
884 THE CANADIAN ANNUAL REVIEW
$1,500,000; Soldiers' Land Act, $2,360,000; Conservation or Irriga-
X tion works, $1,550,000; Department of Industries, $1,025,000;
Better Housing scheme, $1,701,500; B.C. University, $100,000;
B.C. Highways, $3,000,000; South Vancouver loan, $790,000.
The Minister stated that the Revenue for the year of Mch.
31, 1921, was $15,219,264 or $1,241,019 over the estimate while
the Expenditures were $19,626,680 or a saving from the appropria-
tions of $2,000,000. Mr. Hart referred at length to the Municipal
"drive" for Government assistance, described the official enquiry,
made through questionnaires into the situation, and gave an elabor-
ate review and analysis of the whole position of affairs including
the inflated assessments of boom days and the deflated values of
1921. He offered detailed and apparently valuable suggestions as
to future Municipal policy and action.
The chief items of Revenue in 1920-21 included Land Registry
fees $412,575 and Motor traffic fees $582,082; Prohibition Act pro-
fit on Liquor sold $222,526; Dominion subsidy, etc., $623,135;
Amusements Tax, $346,879 and Income Tax $2,005,973; Interest
account $619,554 and Land Taxes $1,908,154; Poll Tax $909,603,
Succession Duties $342,259, Timber licenses, leases, sales and
royalties, $3,965,140. The chief items of Expenditure were $2,-
222,139 on the Public Debt; $434,971 on Provincial Police and $284-
454 on Mothers' Pensions; $3,076,944 on Education and $1,307,951
on Land Services, surveys, etc.; $299,583 on Mines and $1,215,441
on Mental and other Hospitals; $2,288,572 on Roads, streets,
bridges, and wharves and $201,052 on Steamboats and Ferries.
Capital account included $1,143,832 expended on Sinking Funds,
$591,134 on P.G.E. Railway, $265,888 on Industrial School, $297,-
857 on Main Highways, P.G.E. Guarantee note, $175,515, Soldiers'
Land Act $644,388. The estimated Revenue was $13,978,245
and actual $15,219,264; the estimated Expenditure $13,960,711
and actual $15,236,931; the estimated capital account Expenditure
was $3,449,961 and actual $4,389,749.
During the Budget debate the Conservative Opposition de-
nounced these facts and figures with energy. J. W. Jones (Nov.
15) described the Debt of $55,000,000 as appalling for the small
population of the Province; described the last year's borrowings of
$17,000,000 as almost as great as the entire Provincial Debt when
the Conservative Government left office in 1916; claimed that, in-
cluding revenues and loans, the Government had eaten up $100,-
000,000 in five years. Mr. Bowser, the Opposition leader on Dec.
2nd, stated that the Government had borrowed $42,000,000 since it
took office ; now it was asking for 5 millions more which would bring
the total up to 22 millions in a year. He claimed that in the last
fiscal year Interest on money borrowed in that year totalled $2,-
829,632; this year's interest charges would be over 4 millions.
EDUCATIONAL INTERESTS OF BRITISH COLUMBIA 885
The Hon. J- D. Mac Lean, Minister of Education,
in his ReP°rt ~for 1920-21, dealt with a total enroll-
ment of 85,950 pupils and a 79-69 per centage of
regular attendance. There were 2,734 teachers of
British whom 25 1 were in the High Schools, -1,077 in the City
Columbia. Graded Schools, and 644 in the Rural and Assisted
Schools; there were 52 High Schools with 7,259 pupils
and 894 Public Schools with 78,691 pupils and the organization of
57 new Public Schools in the fiscal year of June 30th; the Govern-
ment expenditures on Education in the year were $2,931,572 com-
pared with $2,155,934 in 1919-20, and $1,032,038 in 1912-13. The
cost per pupil was $29.01 as against $17.91 in 1912-13. The teach-
ers numbered 595 males and 2,139 females and 433 had academic
standing, 490 1st Class certificates, 1,105 2nd Class, 418 3rd Class,
139 were temporary and 149 special.
The Vancouver Report showed night schools with 1,686 stu-
dents and 42 teachers and subjects of instruction ranging from
Electrical engineering to Ladies tailoring and from Plumbing to
Mathematics with also, modern languages, Music, Elocution and
Teachers' Courses. The Vancouver and Victoria Provincial Nor-
mal Schools had an enrollment of 328 and the Technical Education
organizer reported 79 Manual-Training centres in the Province,
with 62 instructors, 8,349 elementary pupils and 1,436 High School
pupils attending ; there were also 5 1 Domestic Science centres with
46 instructors, 6,362 elementary pupils and 1,326 High School
pupils in attendance. Night schools were conducted in 21 cities
and Municipalities with 3,197 students; Agricultural education
showed school gardening in 1 19 Schools with 6, 199 pupils and school-
supervised home-gardening conducted in 56 Schools with 721 pupils
— competitions were largely carried on and Boy's and Girls' Clubs
flourished; the Summer School for Teachers at Victoria (July 4 to
Aug. 13) was attended by 207 and Courses in Rural Science, Art,
Vocal Music, and Household Economics were conducted with many
lectures on special subjects; the Free text-books distributed in the
fiscal year numbered 267,188 at a cost to the Department of $86,-
5 12 as against a selling price to the public under ordinary conditions
of $130,436; under the Strathcona Trust, 299 prospective teachers
were granted physical-training certificates with a total of 3,591 to
date.
On Apr. 4 the Minister opened the new Vancouver Technical
School and, on May 21st, stated in a press interview that 41 new
schools had been opened by the Department since July 1st, 1920,
with 13 new schools or additions authorized and 78 new institutions,
towards which the Department had made grants, erected or in
course of construction. S. J. Willis, Superintendent of Education,
stated, at the same time, that several new text-books had been
authorized including A History of England for Public Schools, pub-
lished by Macmillan's; that the Teachers' Employment Bureau or-
ganized in 1920, had secured positions for 86 teachers and had helped
many others to secure schools by sending them lists of vacancies;
886 THE CANADIAN ANNUAL REVIEW
that the B.C. Correspondence School, established in 1919, for the
primary purpose of assisting men and boys engaged in coal mining
and who desired to prepare themselves for certificates of competency
under the Coal Mines Regulation Act, had proved successful with
1 25 students enrolled in the various courses and 243 pupils living
at lighthouses or at distant points in the Province.
During this year there were several teachers' strikes in the
Province — the most notable at New Westminster, on Feb. 13; on
the 14th of that month the School Board intimated that if the
teachers did not return to their duties by the 17th inst. the posi-
tions would be considered vacant; on the 21st the schools were re-
opened under an agreement by which the School Board recognized
the Teachers' Association, agreed to fix all salaries by a sort of
collective bargaining and to submit salary issues to arbitration.
The B.C. Teachers' Federation met at Vancouver on Sept. 2-4, and
passed the following Resolution: "That this Federation respectfully
asks the Department of Education to establish in British Columbia
a Board of Reference to which all contentious cases arising between
School Boards and teachers shall be referred." H. Charlesworth,
General Secretary, expressed to the Vancouver Province (Sept. 2)
his strong aversion to such strikes ; the few that had occurred were
after the teachers had exhausted every means of settlement. Rep-
resentatives were present from 30 centres in the Province and J. G.
Lister was elected President.
At the close of the year the New Westminster matter was up
again and, on Nov. 25th, 87 out of a total staff of 92 teachers,
resigned. It appeared that the question of salaries had been sub-
mitted to an Arbitration Board including H. Charlesworth of the
B.C. Teachers' Federation; that the Award was accepted by the
School Board on a single vote majority and that this was after-
wards reversed. Chairman T. J. Trapp of the Board made the
succinct statement on Nov. 29 that: "When there is an epidemic,
one closes the schools. This is an epidemic — a Bolshevik epidemic. "
The Board evidently shared his opinion, it accepted the resignations,
and decided to advetise for a new staff; at the same time, the B.C.
Teachers' Federation stated that they would refuse to serve the
people of New Westminster till the award was accepted. Another
incident of the year was the dismissal (July 24) of Alex. Robinson,
B.A., LL.D. — who, in 1919, had been impelled to resign as Provincial
Superintendent of Schools — from the Principalship of Victoria High
School ; the reason given was discord in the staff and inefficiency in
the school. At this time, also, G. H. Deane was appointed Muni-
cipal Inspector of Schools in succession to Colonel Winsby.
The University of British Columbia was severely handicapped
during the College years beginning in October, 1920 and 1921. Lacking
adequate accommodation and sufficient Government support, the institu-
tion suffered the loss of a great many students to Eastern Universities,
and, also, to those in Washington and Oregon. In August, 1921, the
University of Oregon formally offered to take the surplus of British
Columbia students from the University, but this courtesy was not ac-
cepted. The Provincial appropriation for the year was $445,000, with
THE ORIENTAL QUESTION AT THE COAST 887
$672,000 asked for. It was claimed by friends of the University that it
was being strangled for lack of sufficient financial aid and adequate
accommodation. There were, in April, 1921, nearly 1,000 students being
taught in temporary buildings adjoining the General Hospital.
The enrollment of the University increased from 1167, in September,
1920, to 1226 in September, 1921, and, in addition, short courses were con-
ducted by the Department of Soldier's Civil Re-Establishment during
1920-21 with 480 students registered. On May 12, at the 6th Convocation,
129 Degrees were conferred or an increase of 60 over the year before.
The Teaching staff, at the end of 1921, included 119 members with 5
others employed for extension and research work. The University De-
partment of Agriculture, opened in September with a full staff and com-
pletion of its Extension service with, also, improvements in buildings and
additions to stock at the University Farm, Point Grey. Appointments
to the Faculty in 1921 included M. Y. Williams, B.SC., Ph.D., Geology and
Mineralogy; Miss M. L. Bollert, M.A., as Dean of Women Students;
G. C. Davidson, Ph.D., History; L. W. Gill, M.SC., LL.D., Mechanical
Engineering.
The Oriental Question at the Coast. The immigration, occupa-
tion, character and competition of the Japanese and Chinese worker in
British Columbia continued to attract discussion in this year. The
Oriental seemed to successfully undersell, out-work and freely compete
in many lines of trade and business and investment with the white work-
er ; the feeling against him seemed to grow in strength as the months
passed on. The B. C. Fruit Growers' Convention, at Nelson (Jan. 20) en-
dorsed a Resolution calling upon the Provincial Government to enact
legislation so that Oriental growers of produce should have to brand or
mark the source of production on every commodity before marketting it.
On Feb. 28 members of the Advisory Board of the Farmers' Institutes
from all parts of the Province appeared before the Agricultural Com-
mittee of the Legislature to ask that the Government gather information
on the extent of Oriental land holdings, and to help in bringing about a
revision of the Anglo-Japanese Treaty in 1923. "Our chief menace is
from the Japanese," said L. E. Taylor, of Kelowna: "We have found
that where the Chinese lease 500 acres they own 100. But with the Jap-
anese when they lease 100 acres they own 500 acres." A. M. Paterson, of
Delta, declared that the Orientals had control of the markets in Van-
couver and other cities : "Things are going on so quietly that they are
not noticed," said G. E. Whitney-Griffiths, Chairman of the Board: "By
the natural increase of population you are going to have 500,000 Orientals
in British Columbia in 10 years." The Delegation also asked for re-
striction of Oriental land holdings.
According to the terms of the Anglo-Japanese Treaty, the Japanese
had full privileges in Canada as to business enterprises and full rights
of protection under the law. The British Columbia Orders-in-Council
passed, from time to time, provided that where Crown lands and Gov-
ernment enterprises were concerned, full privileges could not be enjoy-
ed by the Orientals; nor could Japanese and Chinese be employed on
Government works. These conditions were confirmed by the Legislature
in its first 1921 Session under strong protest from the Orientals of the
Province and an official ore from the Japanese Consul-General; a case
taken to the B. C. Supreme Court resulted (Sept. 8) in Mr. Justice
Murphy's decision granting an injunction against the Government and
preventing any prohibition of employment of Japanese or Chinese by
holders of timber licenses. The case went to the Supreme Court of
Canada, and the Government again lost. Mr. Farns, Attorney-General,
then carried the matter to the Privy Council, where it was under con-
sideration during the balance of the year.*
*NOTE.— Decision given on Feb. 7, 1922, declaring the legislation ultra vires.
888 THE CANADIAN ANNUAL REVIEW
Meanwhile, following the Farmers' representations, Hon. Mr. Barrow
had enquiries made and reported, on May 28, that, according to an in-
vestigation made by Government agricultural officials, 1,080 Orientals
controlled 26,918 acres in British Columbia, of which 367 acres were
orchard lands, 2,341 acres of small fruits, 10,659 acres of truck farms, 515
acres' of dairy farms, and 3,677 acres of land used for mixed farming.
There were 492 Japanese and 116 Chinese owning land to the extent of
14,050 acres. There were 9,000 acres of land in British Columbia owned
and leased by Japanese, and of that total 8,500 acres were absolutely
owned by Japanese. There were 15,000 acres owned or leased by
Chinese, of which 4,970 acres were owned by Chinese.
On July 19th a public meeting at Vancouver, with F. W. Walsh,
President of the Trades and Labour Council, in the chair, decided to form
a B. C. Asiatic Exclusion League, and the acting Secretary submitted a
statement as to the Vancouver business interests of the Orientals :
"There are 56 Chinese and Japanese tailor shops in the city, each employ-
ing at least three persons; 700 Chinese and Japanese employed in the
hotel and restaurant trade; every coastwise ship and many tugboats
have numbers of Chinese employees; there are 15 Chinese and 60 Jap-
anese barber shops in the city, each employing at least two persons ; the
employees of the district sawmills are nearly all Orientals." Later on,
the organization was got into shape with objects as follows: "To educate
the white population as to the menace of Oriental immigration ; to pledge
every candidate running at the next Dominion election to support a
stated policy for exclusion of Orientals ; to press for immediate regis-
tration of all Orientals in British Columbia under the auspices of the
Government."
Another branch of the question was the attendance of about 1,000
Oriental children at the Vancouver schools — usually from one to 7 years
older than the white children in the same classes ; 500 of these students
were said to be Japanese and 491 Chinese, with an increase of 25 per
cent, over the 1920 enrollment. Of 33 School Principals, however, only
two pronounced the Oriental children a hindrance to efficient work.
The annual Report of the Secretary of the B. C. Retail Merchants' As-
sociation, at their Duncan meeting, on July 26, declared that : "The
Oriental is with us as a factor not only in retail merchandising, but in
every other phase of comntercial activity; about one-third of the retail
grocers of Greater Vancouver are Orientals and the same condition
applies to the merchant tailors with, perhaps, 50 per cent, of that busi-
ness in Vancouver in the hands of Orientals." At the Autumn Session
of the Legislature (Nov. 1st) a motion by G. S. Hanes and Major R. J.
Burde was carried unanimously asking the Dominion Government to
amend the Immigration Act of Canada so as to totally restrict immigra-
tion of Asiatics into this Province — "keeping in view the wishes of the
people of British Columbia that this Province be preserved for people
of the European races."
The Hon. T. D. Pattullo. during the discussion, was frank in ad-
mitting that the Oriental at the Coast filled a want and was industrious ;
he had no objection to him other than that he belonged to the yellow
race and could not be assimilated. On Nov. 28th the Board of the
Victoria Chamber of Commerce passed Resolutions urging exclusion of
Oriental immigration and action by the Civic authorities to raise the
standard of living of present Oriental residents, denial of the right of
Orientals, in future, to own property, and segregation of Chinese pupils
at Public Schools. The Report of the B. C. Social Service Council, sub-
mitted on Nov. 28, declared that "the immigration of the Oriental into
this country should, for the piesent, be prohibited because of the eco-
nomic unrest and the condition of unemployment." Meanwhile, there
was much travel to and fro of Chinese, particularly. While many came
into the Province (largelv students and travellers) by every C. P. R.
steamer from the East, the Empress of Asia, for instance, sailing from
Vancouver, on Apr. 9, carried 650 Chinese back to China.
RESOURCES AND DEVELOPMENT IN BRITISH COLUMBIA 889
British
Columbia
Resources,
Development
and Business
in 1921.
General conditions were not good during the
year, though a better spirit prevailed toward its close
and there were some signs of a gradual lifting of the
depression. In business, collections had been fairly
good and failures were not serious; wages had fallen
unevenly, from 10 to 50 per cent, with logging and
mining as the most marked industries in this respect ;
shipments of grain ma British Columbia ports had increased from
the Western Provinces; ship-building, except for special local pur-
poses, was almost at an end with a 49,000 tonnage completed from
1920; the salmon canners and fishermen had found the year a diffi-
cult one with a serious reduction in Sockeyes ; the lumber trade was
depressed with export business, however, fairly good. The actual
resources of the Province still remained almost untouched with
(according to Government estimates) 50,000,000 acres of agricultur-
al land suitable for settlement, 349,568,000,000 feet of saw material
in its Timber lands and 83,828,523,000 tons within its vast coal
fields; B.C. iron was claimed to be a magnetite equal to the best
Swedish ore and hematite of best grades with a proven tonnage of
94,000,000 and an estimate of 300,000,000 tons. Provincial figures
of production, over a specific period, were as follows :
1912 1914 1916 1917 1920
Minerals $32,440,500 $26,388,825 $42,970,555 $37.182,570 $35,580,625
Timber . 30000000 28,250,000 35,528,000 42,000,000 92,628,807
Agriculture:.:'.::::::::..::: 23',323,269 30,184,100 32,259,157 35,000,000 64,370,116
Fisheries 13,677,125 13,891,398 14,538,000 16,000,000 12,612,773
Federal statistics at the beginning of the year showed British
Columbia as leading the Provinces in the average value of farm
lands with $75 per acre; in other Provinces the average values ran
from $32 in Alberta to $70 in Ontario and Quebec. Agricultural
conditions in 1921 were, as elsewhere in Canada, depressing as to
prices and the Federal figures of total production of Field Crops
were $7,000,000 less than in 1920. Wheat stood at $1,435,000,
Oats $1,571,000, Potatoes $2,646,000, Turnips $1,670,000, Hay and
clover $7,478,000, grain-hay $3,141,000, and alfalfa $1,121,000.
As to live-stock, the horses of the Province were valued at $4,456,000
in 1921, cattle at $13,064,000, sheep at $412,000 and swine $706,000
or a total reduction of 3^ millions. The following figures (Federal
Bureau) indicate conditions in a four-year period, and, especially,
the progress of deflation in prices :
British Columbia
Field Crops
1918
$17,548,000
1919
$24,603,000
1920
$27,017,000
1921
$20,447,000
3,635,000
4,161,000
2,441,000
2,470,000
Wool
184,000
6,612,000
144,000
7,832,000
53,000
8,286,000
24,000
8,286,000
Fruits and Vegetables
Poultry and Eggs
Fur Farming
3,000,000
2,120,000
20,000
3,000,000
2,120,000
20,000
3,000,000
2,385,000
15,000
3,000,000
2,915,000
99,000
Totals..
$33,119,000 $41,880,000 $43,197,000 $37,151,000
The above estimate as to Fruit, though official, is very arbitrary
and obviously incomplete. Other official reports show the fruit
production of 1919 as $6,540,300 and in 1920 as $5,106,905. If the
890 THE CANADIAN ANNUAL REVIEW
1921 figures were to include the estimated fruit product of that year
($9,000,000) the above total values would, also, be much greater.
The Government's agricultural policy during the year was an effort
to develop Irrigation and drainage in the fertile valleys of the In-
terior. In the South Okanagan region where the Government had
been opening up the Townsite of Oliver, 75 per cent, of the bench
lands open for settlement at this time and for which Irrigation had
been provided, were disposed of. All of the business lots had been
sold and another irrigation tract of about 2,300 acres was nearing
completion. Taking this famous Fruit valley as a whole, the
estimated output for the season was $9,000,000 and shipping was in
process to Europe, Africa, Asia, Australasia and South America;
the privately-owned Irrigation systems represented an expenditure
of $5,000,000 and 20,000,000 acres of land were set out in fruit
trees. In the Province, generally, the Apple crop of 1921 was very
successful and perhaps 100 per cent, in excess of the previous year.
Dairying, also, was a successful year with the Fraser River Valley
showing an estimated output of $2,630,000. The Honey crop was
also good with the Okanagan settlers going in for Apiculture with
enthusiasm while Kelowna imported a consignment of Dutch bees.
Other incidents of the year included the purchase by Sir James
Buchanan, Bart., the Scotch distiller, of the Coldstream Ranch,
near Vernon, which had been the property of the Marquess of
Aberdeen and had developed into, perhaps, the finest orchard pro-
perty in British Columbia; the purchase by Major C. S. Goldman,
ex-M.p., of the town of Nicola and its surrounding acres which he
proposed to convert into a model English village and summer resort ;
the success of British Columbia fruit at the Crystal Palace Apple
Show in London, where 17 prizes were obtained, in South Africa
where a shipment was highly praised, and in Ontario where the
Coast apples competed with the home product; the re-election of
C. E. Barnes as President of the B.C. Fruit Growers' Association,
of R. P. McLennan, Vancouver, as President of the B.C. Jersey
Breeders' Association, and J. C. Mitchell as President of the B.C.
Thoroughbred Breeders' Association.
B.C. Mines and Mineral Production. Mineral production
was affected by the price deflation of 1921 as well as other things;
the total in British Columbia was $28,066,641 compared with
$35,543,084 in 1920, although the actual product of lead and zinc
increased while silver and copper decreased. The output of all
British Columbia mines, including the famous Placer gold of the
Fifties was, to the end of 1921, $734,259,619. Of the latter year's
product, Gold stood at $3,037,354, Silver $1,591,204, Copper
$4,879,624, Lead $1,693,354, Zinc $1,952,065, Coal $12,419,975.
The great product of the Province was Coal and Coke with a total
to date of $225,000,000. Of the 1921 Coal, 1,625,931 tons came
from Vancouver Island and 759,755 tons from the Crow's Nest,
while 1,269,566 tons were sold in Canada and 815,441 were exported
to the United States.
RESOURCES AND DEVELOPMENT IN BRITISH COLUMBIA 891
On Feb. 20, Hon. William Sloan, Minister of Mines, announced
an official Enquiry into Coal conditions in British Columbia, with
appointment of Alex. Henderson, K.C., Vancouver, as Commissioner
to carry on the Enquiry and submit a report. It was provided by
Order-in-Council that the Commissioner should examine the cost
of production, the cost of transportation, the cost to dealers, the
cost to consumers, the profits made by persons or corporations own-
ing, controlling or operating coal mines in the Province, the profits
made by dealers in coal, and, generally, to enquire into all matters
relating to or affecting the price of coal to consumers in the Province.
The Enquiry opened in Vancouver on Feb. 28, with F. T. Congdon,
K.C., acting under instructions from the Government, as representa-
tives of the public and Maj.-Gen. R. G. E- Leckie, M.E., acting as an
Assistant to the Commissioner.
Evidence was at once produced to show that since April, 1918,
coal to the consumer had advanced just twice as rapidly in Van-
couver as in the Cities of Nanaimo or Fernie, Calgary or Edmonton,
and Regina; that in April, 1918, lump coal to the people of Van-
couver was $8.80 a ton while in January, 1921, it was $15, or an
increase of $6.20 a ton; that the average increase in the other
five cities was $3.15. The Commission started in Victoria, on Mch.
10, and was back again in Vancouver during April. There was no
investigation of Interior conditions. Mr. Henderson reported late
in April and the result was made public on May 8.
The Commissioner stated that beyond keeping up prices the
Dealer's Association did not appear to have exercised any other
function, while the evidence conclusively showed that dealers had
frequently delivered short weight to consumers. As to Operators:
"Evidence shows that the management of those conducing coal
mining operation on Vancouver Island is excellent. Superinten-
dents and others in charge are most experienced and intelligent men
and are familiar with the best and latest modes of mining; the opera-
tions are well and efficiently conducted." In referring to prices,
the Commissioner stated that the figure of $15 per ton for lump coal
was never justifiable, and that the Coal Dealers' Association could
have rendered invaluable aid in reducing the price of coal if it had
adopted a regular system of transportation from Vancouver Island
to Vancouver and an economical system of delivery. Referring to
the Operators' policy of selling only to coal dealers, the Commis-
sioner noted that this had made the organization of a "steel-clad
coal ring" possible. As to this he was explicit:' 'The dealers have
fixed uniform prices and have fixed them not to meet the require-
ments of the most efficient among them but to insure a profit to the
least efficient." On the question of cost of production much evi-
dence was taken and the cost of coal to the dealers, the prices of
different grades f.o.b. the mines, were given as on Jan. 1st, 1917 and
Feb 6 1921 as follows, respectively: Lumps, $4.75 and $9.46;
Nut $3.75 and $8.46; Pea $3.00 and $7.96. Recommendations
were submitted by General Leckie as follows:
892 THE CANADIAN ANNUAL REVIEW
1. That legislation be enacted to deal with any combine formed for
the purpose of maintaining a high price for coal.
2. That dealers be licensed and that they be limited in number, ac-
cording to the requirements of the district they serve.
3. That an effort be made to secure special freight rates for coal,
in order that there may be closer competition in the larger markets and
between the different coal fields.
4. That an effort be made to eliminate the system of delivering coal
in sacks — compelling consumers to make provision to receive coal in bulk.
5. That the calorific value, analyses, and important characteristics
of the different coal-seams mined in the Province be officially establish-
ed and made public.
6. That standard sizes of coal should be established officially and
these sizes should be classified as lump, stove, nut, pea and slack.
7. That where the coal is sold in sacks a set of scales be carried
on the same vehicle in which delivery is made to the customer.
8. That an official investigation be made into the question of the
economical use of coal.
9. That a short ton of 2,000 pounds, and not the long ton, should
be officially recognized as the standard unit of weight as applied to coal.
General Leckie gave the following reasons for the current high
price of coal: (1) increased cost of labour; (2) exhaustion of the more
cheaply mined sections of the Coal seams; (3) increased difficulties
underground in the way of "Faults," "Wants," and other irregular-
ities in the seam; (4) increased salaries and wages for management
and in offices; (5) increase in price placed on the coal to permit a
profit being made on production ; (6) increase in pay to officers and
crews concerned in the transportation of the coal ; (7) increased cost
of fuel at the bunkers, and of supplies, and of labour in handling,
screening, sacking and delivering coal; (8) increased salaries and
other office expenses in connection with the dealers and firms; (9)
increased number of coal dealers engaged in the business; (10) the
great demand for lump coal exclusively, when a mixed product
would serve equally well; (11) the desire to have coal delivered in
sacks, instead of in bulk.
B. C. Lumber and Fisheries in 1921. The Hon. T. D. Pat-
tulo, Minister of Lands, in his Report for the calendar year 1921,
stated that 1921 would be remembered as a period of re-adjustment
and deflation and, in no case, was this condition more marked and
with more promising results, than in the Lumber industry. Early
in the year prices of lumber products dropped close to pre-war levels
and, in general, throughout the year were 40 to 50 per cent, below
those of 1920; the result was that demand strengthened, foreign
trade increased and labour responded by accepting reduced wages
and increasing efficiency. Provisions also declined in price and,
with the close of the year, deflation in equipment was progressing ;
new foreign fields were entered and new markets developed. The
revenue charged on operations was $1,544,251, as against $1,547,461
in 1920. The Minister described export demand as strong through-
out the year — especially from Japan and China. The Japanese
trade increased from 5,990,266 to 52,447,160 feet, B.M., and the
Chinese trade showed an increase of 180 per cent, over the previous
year; so with United States coastal trade which, in 1920, was
RESOURCES AND DEVELOPMENT IN BRITISH COLUMBIA 893
4,162,848 feet and in 1921 25,553,543 feet. The total export was
188,000,000 feet or an increase of 42,000,000 feet for the year and a
new record for British Columbia. The organization of the Associat-
ed Timber Exporters and the formation of several other export
companies, gave a foreign buyer direct contact with the trade and
the Canadian Merchantile Marine aided in solving the shipping
problems.
The value of total production showed a reduction from $92,-
628,807 in 1920 to $64,970,000 in 1921— compared, however,
with $54,162,523 in 1918. The pulp industry suffered from falling
prices and slow buying, especially on sulphite and sulphate products,
and some of the mills closed for a time. Paper-mills ran throughout
the year, though not at full capacity. The product of pulp mills
was 68,502 tons of sulphite, 6,519 of sulphate and 89,725 of ground
wool with 110,176 tons of newsprint and 6,934 tons of other paper.
The timber scaled during the year was 1,790,017,365 B.F. compared
with 2,046,468,959 in 1920; the number of sawmills was 341 with a
daily capacity of 10,729,000 B.M.; there were 109 shingle-mills with
a capacity of 13,426,000 shingles daily — 37 saw mills and 2 shingle
mills were shut down. The Forest revenue of the year was $2,-
956,292; the Protection expenditure was $645,842 — chiefly against
Fire ; the area of Crown grant timber lands was 845, 111 acres valued
at $10.33 per acre or $8,729,996.
The year started with lumbering very active and a strong de-
mand from the Orient ; the shipment, up to April, by the Canadian
Robert Dollar Co., alone, of 12,000,000 feet; big cargoes taken to
Australia, South Africa and Great Britain by the Canadian Govern-
ment freighters; large bookings for Japan and an estimate of
$6,000,000 a month in purchases from that country during April-
July; the announcement in June that an important group of British
financiers, headed by Frederick Benson, Sir Lionel Fletcher, Sir
Connop Guthrie, and Col. R. S. Chaplin, were to expend $18,000,000
in the development of an immense timber tract in British Columbia,
comprising an area of over 400 square miles, in the Revelstoke dis-
trict. On Sept. 26 an order for 3,500,000 feet of lumber and ties for
Admiralty shipyards was placed in Vancouver with the H. R. Mc-
Millan Export Co. The Canadian Forestry Association, which met
at Vancouver on Sept. 19 and in Victoria on the 20th, evoked some
interesting facts with conservation of forests, however, as the key-
note. P. L. Lyford, a well-known forest engineer of Vancouver,
referred to the question of prime importance to the lumbering in-
dustry and the Province at large as "application of practical methods
of re-forestation," by the Provincial Government and declared that
while the Province probably contained 350,000,000,000 feet of
timber, there was not more than 150,000,000,000 feet of the kind
and quality and availability of the timber being logged to-day and
which would be logged during the next decade. Others emphasized
this point and the vital need of protection against fire as well as
re-forestation.
894 THE CANADIAN ANNUAL REVIEW
Mr. Pattullo, Minister of Lands, in the Legislature on Oct.
21, declared this industry to be the main one of the Province and a
barometer of general trade upon which many conditions depended ;
he described his own campaign to secure extended markets and to
make B.C. lumber better known — in Ontario, in England, and else-
where. A large British order had been obtained and the Timber
Export Association formed to handle it and they had sold up to
Sept. 1, 1921, 218,556,000 feet with total shipments to chat
date of 208,776,000 feet; he stated that, in the larger forest
areas of the Province, the annual growth exceeded the annual cut
and annual waste through fires, etc., by a large margin. The fol-
lowing figures for the first 8 months of 1921 indicate the far-flung
character of British Columbia's Export lumber trade:
Country Feet Country Feet
Australia 7,370,889 San Pedro 4,995,260
Egypt 8,566,400 China 19,895,787
Japan 24,737,947 India 6,516,085
South Africa 2,571,615 New Zealnd 4,942,992
South Sea Islands 252,922 Straits Settlement 689,070
U. K. and Continent 11,824,958 Atlantic Coast 3,768,263
Hawaiian Islands 1,009,480 Philippine Islands 1,517,087
California 1,287,449 San Francisco 1,644,957
The Fisheries of British Columbia have always been a great
source of wealth as well as of reputation. Since 1910 the production
had run in value as follows: 1910, $9,163,235; 1911, $13,677,125;
1912, $14,455,488; 1913, $13,891,398; 1914, $11,515,086; 1915,
$14,538,320; 1916, $14,637,346; 1917, $21,518,595; 1918, $27,282,-
223; 1919, $25,301,607; 1920, $22,329,161; 1921, $13,943,450. The
product in 1921 showed a serious reduction in both quantity and
price. Salmon fell from 1,262,864 cwt. in 1920, to 843,026 cwt. in
1921, and the total value of the Salmon, asmarketted, decreased from
$15,129,348 to $8,581,724; the catch of Halibut increased from
238,770 cwt. in 1920 to 325,868 cwt. in 1921, and the marketted value
decreased from $4,104,869 to $3,636,076. Herring totalled $936,-
407 in value, Cod $232,638, black cod $142,558, Pilchards $101,945.
The capital invested in the vessels, boats, nets, traps, piers and
wharves, etc., engaged in the primary operations of catching and
landing Fish was $7,509,363 in 1921, compared with $9,185,279 in
1920; the employees numbered 10,623 in 1921, compared with
11,569; the capital represented in Fish Canning and Curing estab-
lishments in 1921 was $12,449,102,' compared with $14,105,080
in 1920, and the employees numbered 4,471 and 7,212 respectively.
As to the famous Salmon Pack of the Fraser it looked as if the
"big years" of the past — coming with certainty every 4th year —
had gone for ever. Mr. Sloan, who was Minister of Fisheries as
well as of Mines, presented to the Legislature on Feb. 27th a Report
which he had obtained upon the subject from Prof. C. H. Gilbert
of Stanford University. It began by stating that: "Fishermen and
salmon-packers, and all concerned with the Salmon situation, are
aware that 1921 is a lineal descendant of those 'big years' on the
Fraser which, prior to 1917, occurred without fail in every 4th sea-
son, and brought such incredible hordes of Salmon to the fishing
THE UNITED FARMERS OF BRITISH COLUMBIA
895
grounds and into the River. Even after the depletion of the River
had become pronounced for the three 'small years' of each cycle,
still the quadrennial big years remained unimpaired. And they
would probably have maintained themselves until now but for the
accidental blockade of the Yale Canyon in 1913, precisely in time to
intercept the spawning run of that big year." The expected had
occurred in 1917 and only the by most strenuous exertions, had a
Pack of 560,000 cases been obtained or about one-fifth that of the
usual big year. As finally announced by the B.C. Salmon Packers'
Association, the total production for 1921 was 603,548 cases valued
at $6,000,000 and, by districts as follows:
Variety of Fraser
Salmon River
Red Springs nsfin
Skeena
River
18,599
2,722
445
Rivers
Inlet
364
Naas
River
1,431
437
220
Vancouver
Island
2,690
540
3,151
Outlying
Districts
2,281
2,435
279
2,586
204
18,203
14,818
21,412
20,665
Pink Springs
White Springs
467
4 582
Blue Backs
1,323
Steel Heads
8
498
45,033
124,457
1,993
41,018
97
4,718
5,035
173
46,300
413
8,236
29,488
2,176
9,364
Cohoes
Pinks
29,978
S 17S
11,120
10,660
34,431
10,667
Chums
Sockeyes
11 223
35 onn
Totals 103,919 234,765 56,957 51,765 73,259 82,883
The Pack was one of the smallest on record and less than half
that of 1920 and the canners lost heavily. As the source of these
Salmon runs was in American territory, every effort was made by
the Dominion and Provincial Governments — in 1919 and 1920, as
well as in 1921 — to come to some joint protective arrangement with
the United States or the State of Washington. But rival fishing
interests, International jealousies and American political differences
made it impossible. Meanwhile, the Salmon-canning industry had
sent lyieut.-Col. F. H. Cunningham, ex-Chief Inspector of Fisheries,
to England and France to conduct an educational campaign there
and in other countries, for the purpose of increasing consumption
of canned salmon of all varieties.
The United Farmers of British Columbia. Maintaining their
policy, as expressed in 1920, the United Farmers of British Columbia de-
cided, at their 5th Convention, held in Vancouver, Feb. 22-23, that the
organization would not take any direct Political action; it was felt,
rather, that the Farmers of the Province should first organize thorough-
ly on an economic basis. The 1921 Convention was attended by over 200
delegates, as against 65 in 1920. President R. A. Copeland reported an
increase in Locals from 40 to 149 and in membership of 3,000. A total of
107 Resolutions were presented and discussed. Amongst those passed,
for submission to the Provincial Government, were the following:
1. Urging strict enforcement of the Weed laws on Indian Reserves.
2. Asking for improvement of transportation facilities and request-
ing Government profits from the sale of Liquor to be given to the main-
ance and improvement of Roads in rural districts.
3. Suggesting appointment of a Government Commission to inves-
tigate the Province's water-powers with a view to establishment of a
Hydro-Electric Commission on the lines of the Ontario body.
4. Asking that the United Farmers should have representation on
the Railway Commission.
5. Urging the establishment of an Agricultural Credit System of
loaning money to Farmers.
8% THE CANADIAN ANNUAL REVIEW
A strong Resolution was passed, for presentation to the Federal
Government, as to the need of protection against Oriental immigration
and declaring that all commodities produced by Orientals, whether in
this country or abroad, should be so stamped. R. A. Copeland, of Lumley,
and W. E. Chappell, of Armstrong, were re-elected President and Secre-
tary, respectively, while the Vice-Presidents chosen were J. L. Pridham,
Kelowna; W. F. Laidman, Vernon; Colin Muir, Chilliwack. There were
in British Columbia, at this time, several bodies of about equaj strength ;
they all realized the advantages of a single, united agricultural organiza-
tion, but appeared to lack the power of effecting the fusion. There were
present at this Convention. J. W. Berry, President of the Milk Producers'
Association of the Fraser Valley; President C. E. Barnes of the Fruit
Growers' Association, and W. H. Turnbull, Secretary of the B. C. Honey
Producers' Association, who all spoke favourably of the principle. J. B.
Musselman, of Saskatchewan; Norman Lambert, of Winnipeg, and C.
Rice-Jones of the United Grain Growers, Ltd., emphasized the value of
unity and co-operation.
A report was presented of a 1920 canvass made amongst the mem-
bers of the U. F. B. C. as to certain questions. On that of affiliating
with the other Farmer organizations, through the Council of Agriculture,
95 out of 98 Locals voted favourably; upon the fiscal policy of the
Council, as expressed in the Farmers' Platform, only one Local out of
98 was favourable. In November a joint Committee of the United Farm-
ers and the Farmers' Institutes prepared and placed before the Agri-
cultural Committee of the Provincial House, a strong recommendation
that the Government should assist the Farmers by (1) showing greater
activity in regard to the Sheep industry; (2) higher bounties on the
killing of predatory animals; (3) appointment of two farmers on the
Game Board and revision of the Game Laws; (4) taxing transients in
rural communities for School privileges; (5) the establishment of a
rural Banking System.
CONDITIONS IN THE YUKON DURING 1921 897
Position and Production of the Yukon.
This famous placer gold field celebrated, in 1921 the 25th birthday
of gold discovery in the Klondike on Aug. 17, 1896, and hundreds of pion-
eers gathered at Dawson to mark the event. Between 1897 and 1911,
when its placer product reached a declining stage, the total of Canada's
Yukon gold was $137,361,362. Its production in 1921 had fallen to $1,325,-
000 with hydraulic operations still maintaining ground and still finding a
profit in the work. In 1920 the production had been $1,512,006 and in 1919
$2,355,631. There were known to be great resources in silver and a series
of discoveries were reported in March, 1921, at Keno Hill, the centre of
the new Mayo mining district, 160 miles east of Dawson, the strike was
said to show a remarkable ledge of silver in No. 9 tunnel on the Rico,
Claim, owned by the Yukon Gold Company; it was reported as 9 feet
wide with 7 feet solid high-grade galena. This Company already had
2,500 tons of ore at the Mayo Mine, Keno Hill, ready for shipment on the
first steamer, and several other large companies were stated to have
taken options on silver claims in the vicinity. In June silver ore, valued
at $50,000, reached Dawson from this camp, with $750,000 more said to be
waiting shipment.
The population was small at this period and Dawson very different
from its days of gold and glory: but the settlement was stabilized and
the people living under a Territorial system of government, established
in 1898, and since developed until it is somewhat similar to that of the
North-West Territories prior to 1905. There is no Legislature in name,
but the Yukon Council, since 1919, has consisted of 31 members elected
to hold office for three years with an indemnity of $400 per annum, and
this body has legislative powers. The Chief Executive Officer is the
Commissioner of the Yukon, appointed by the Dominion Government.
During its April Session, in 1921, this body passed some important
measures. One involved the taxation of all unmarried men and women
in the Territory to the extent of $5.00 a year in addition to an existing
poll-tax. Another measure authorized the Mounted Police to issue
strychnine to reliable hunters for wolf poison, as the country was be-
coming infested with wolves who were killing enormous numbers of
moose and caribou; legislation also changed the location of the Govern-
ment Assay Office from White Horse to Minto Bridge, in the centre of
the Silver mines and near Keno Hill.
The Council memorialized the Federal Government to permit the
export of Silver-lead to United States coast smelters because the Cana-
dian coast smelters were not equipped to handle that form of ore and
others were too far distant to permit it being shipped at a profit. A
second Resolution memorialized the Federal Government to extend the
Yukon trunk road and telegraph system to Fort Norman oil fields in the
Mackenzie Valley. It was stated that the existing Road system ex-
tended the length of the Yukon and reached within 360 miles of Fort
Norman. In July there was a brisk campaign over Prohibition and the
right or otherwise of importing liquor ; its sale had been forbidden in
1920, but, on July 12, 1921, by a vote of two to one, the people demanded
the right to import liquor. The United States, however, had placed an
embargo upon the export or import, of liquor across its Alaskan terri-
tory and this rendered the vote practically abortive, because all trans-
portation routes into the Yukon touched United States soil. A system
of Government agencies and control was rendered necessary by this
situation. It may be added that the land of the Yukon is 132,113,360
acres, and its total area 207,076 square miles; in 1911 the population was
8,512 and in 1921 4,157.
THREE IMPORTANT ORGANIZATIONS
IN 1921
Canadian Clubs. The cultivation of a spirit of active patriotism
and an increased interest in the National problems of the day, was main-
tained as a general policy by the Canadian Clubs during the year 1921,
but there were two features of this programme which made special pro-
gress— a marked tendency toward co-operation between individual Clubs
and the active encouragement of Vocational Training in many centres.-
On Sept. 12-13 the Association of Canadian Clubs met in its 9th annual
Convention at Winnipeg and, throughout its sessions, an enthusisatic
spirit of idealism and a distinct unity of purpose were visible. The Dele-
gates emphasized a two-fold policy in the organization — to expand into
an Empire-wide organization and to function as an interpretive and con-
ciliatory body between the Empire and other countries. Among those
who attended the Convention and who sat with President R. W. Craig,
K.C., at the opening gathering, were Premier T. C. Norris of Manitoba
and Mayor Parnell of Winnipeg; Lieut-Col. C. R. McCullough and W.
Sanford Evans, Hon. Presidents ; Very Rev. Prebendary Gough, Lon-
don, England; Albert Oliver, President N. Y. Canadian Club; R. H.
Smith, Hon. Secretary. Many questions of vital importance to Cana-
dian citizenship were discussed and, among the Resolutions passed, the
following were of special interest :
1. Recording the opinion of the Conference that laws regarding
vital statistics should be amended to include the word "Canadian" as a
term of racial origin, and requesting incoming Executives to bring
pressure to bear upon the various Provincial Governments concerned.
2. Urging that Canadian Clubs should make an especial effort each
year to celebrate Armistice Day in commemoration of the dead.
3. Approving the formation of a League of Nations' Society which
would promote international peace and furnish information regarding
Canada's international relations and problems.
4. Supporting better Films and more British Picture productions,
with strong approval of the Public Amusements Act of Manitoba, 1921,
in this connection, and the recommendation of similar enactments in
other Provinces.
At the final session George C. Coppley, past President of the Hamil-
ton Club, was elected President of the Association, Mrs. J. S. Dunn, of
Hamilton, Vice-President, and A. R. Lancefield Hon. Sec.-Treasurer.
Lieut.-Col. C. R. McCullough, Hamilton, and W. Sanford Evans, Winni-
peg, the originators of the Canadian Club idea, were re-elected Hon.
Presidents. Meanwhile, the individual Clubs continued their educative
and patriotic work in the various centres, not only by the introduction
of speakers of note— the leader? of their own land and notable visitors
from all parts of the world— but by the distribution of special literature,
the encouragement of essay-writing in schools and general educational
work. Other activities grew up — the Vancouver Canadian Club de-
ciding to stand behind the Boy Scout movement and to associate it with
the activities of the Club : the Edmonton Women's Club lending its sup-
port to the Y. W. C. A. and Armenian Relief; the Calgary Women's
Club assisting in Red Cross work, and the Men's Club arranging a series
of Lectures to the High School students of the city on vocational sub-
jects, and to the Normal students on Constitutional matters.
In Provincial captials and other centres, the Club meetings afforded
to a section of the public opportunities of learning, from National lead-
ers, the policy of the Government and progress of the country, and
among these speakers in 1921 were Messrs. Meighen, Rowell, Guthrie,
Cody and Drury. H. E. the new Governor-General, Sir James Aikins,
Sir Bertram Windle, Maj.-Gen. F. G. MacBrien, C.B., C.M.G., D.S.O., Sir
[898]
RECORD OF CANADIAN CLUBS IN 1921
899
Robert Falconer, Archbishop Neil McNeil, and many others of note, ad-
dressed various Clubs on matters of current interest and importance.
The bonds of Empire were tightened and many Canadians made to
realize the status of their country in a more positive way through being
able to hear such eminent visitors as Admiral Earl Beatty, General the
Earl of Cavan, Maj.-Gen. Sir Jocelyn Percy, Rt. Hon. J. W. Lowther,
M.P., Rt. Hon. Sir John Simon, Vice-Admiral Sir William Packenham,
H. W. Steed, Editor of the London Times, Dr. S. K. Datta of India,
General Bramwell Booth, Prebendary Gough of St. Paul's Cathedral,
Dr. J. D. Hertz, Chief Rabbi of the British Empire, Sir John Martin
Harvey and Sir Harry Lauder.
The Women's Canadian Clubs lent their influence, particularly, to
the support of literary effort, education, town-planning and social ser-
vice. At the end of the year, the Clubs in Canada totalled 79, including
44 men's organizations and 35 women's, and, besides these, there were
a number of outside affiliated Canadian Clubs — notable in London, New
York, Boston, and Bermuda. R. W. Craig, K.C., in his address at the
Winnipeg Convention, stated that the Delegates represented about 50,-
000 members. New Clubs were established, during the year, at Minne-
dosa, Grand Prairie, North Winnipeg, Mossomin, North Battleford,
Simcoe, Sudbury, Regina, Barrie, Port Hope, London. The following is a
list of the larger Clubs in Canada and their Presidents in 1921 :
Men's Canadian Clubs
Fort William Col. R. H. Neeland
Hamilton John Stephen, M.I..A.
Toronto J. M. Macdonell
Vancouver W. G. Murrin
Calgary Dr. G. D. Staaley
rbec J. Lavory
John A. M. Belding
Halifax A. Handfield Whitman
London Major Hume Cronyn
Victoria B. C. Nicholas
Ottawa C. A. Magrath
Montreal A. A. Magee
Edmonton George H. Gowan
Regina Alex. Ross, K.C.
Winnipeg Maj. C. K. Newcombe
Women's Canadian Clubs
Victoria
Vancouver
Calgary
Edmonton
Regina
Winnipeg
.Mrs. Margaret Jenkins
.Mrs. A. J. Paterson
.Mrs. T. B. Moffatt
.Mrs. Duncan Smith
.Mrs. W. M. Graham
.Mrs. R. M. Dennistoun
London
Hamilton.
Toronto....
Montreal..
Quebec
St. John....
Mrs. F. E. Leonard
Mrs. Sidney Dunn
Mrs. John Bruce
Lady Gordon
Mrs. Thomas Chapais
Mrs. L. P. D. Tilley
Young Men's Christian Associations. This organization main-
tained its standard of efficiency, its devotion to duty, and its acceptance
of responsibility as a world-wide body, even though the more spectacu-
lar phases of its work during the War had given way to those of re-
constructive education. On Apr. 30, 1921, the membership in the 2,120
Associations in the United States and Canada totalled 935,581 as against
720468 in 1917. In June, 192!. the National Council of Great Britain pub-
lished a pamphlet which showed that from August, 1914, to May 31 1920,
the gross expenditure of the British Y. M. C. A. was £21,951,688. In
Canada its National Council and the four Territorial Committees-
Maritime, Ontario and Quebec, Central West, and West— which were
composed of members of the Council and others elected territorially,
had during 1921, a number of changes in the Executive— the most im-
portant being that of Charles W. Bishop, General Secretary of the Na-
tional Council, who retired ana was succeeded by H. Ballantyne, of the
Ontario and Quebec Division, while William Jessop succeeded J. H.
Wallace as Secretary of the Foreign Department; F. J. Smith was ap-
pointed to the Central "Y," Toronto, and his position of National Phy-
sical Director was filled by J. H. Crocker, General Secretary for the
Central-West Division who, in turn, was succeeded by T. D. Fatten;
the National Boys' Work, with headquarters at Toronto, was placed under
L. A. Buckley of Halifax, and R. C. Sidenius took over the work of
General Secretary to the Maratime Division.
900 THE CANADIAN ANNUAL REVIEW
To enable Y.M.C.A. students to qualify in Canada for Secretarial
positions, a scheme was put into partial operation whereby a series
of lectures could be taken at any Canadian University in courses already
provided and, in addition to the lectures along technical lines given in
the Y.M.C.A. Training Department. The period of training was placed
at three years, with credit of two years for graduates in Arts, Science
or Theology and, under Dr. F. E. Best, considerable progress was made
by the end of 1921. Amongst the various phases of operations in Canada,
it may be noted that the Summer Training School at Lake Couchiching
was re-equipped and $1,000 appropriated for purchase of additional land
with 7 church organizations also making use of the property; that
through A. H. Jones, the Immigration Department met over 100 vessels
at Quebec, distributed nearly 2,500 cards of introduction and direction
to Y.M.C.A's in America, and 376 personal letters of introduction for
young men who were strangers to the country; that amongst the rail-
way centres, mines, lumber camps, fishing fleets and in port cities, a
similar social work was carried on with men of all creeds and national-
ity; that in the War hospitals at Montreal, Toronto, Winnipeg, Calgary,
Vancouver and other points where 5,000 veterans still remained, con-
tinual contact was maintained with these men — each month 4,500
patients receiving personal visits from representatives of the Y.M.C.A.,
who gave any services or assistance required, while 2,500 movie shows
were provided at the expense of the Association and over 500 concerts
carried out successfully.
Finally, the Department cf Physical Training reported that nearly
250 men and boys had taken examination at Toronto during the year
as registered members, with 40 men taking the course at the Physical
Institute, Lake Couchiching, in preparation, as instructors, for future
employment throughout the Dominion. Other activities showed 28
Junior departments with 5,493 entries, and 19 Senior departments with
807 entries taking part in the Hexathlon or Indoor Championship Con-
test; Swimming and life-saving courses given to 8,788 men and boys,
and 773 swimming classes with a registered attendace of 218,400; C.S.E.T.
and National Athletic Championships for Trail Rangers and Tuxis Boys,
decided in every Province, with 311 groups and 3,092 entries in 99 dif-
ferent communities participating- yearly half a million attendances reg-
istered at gymnasium classes and over 1,000 laymen serving on Physical
Department committees. The Association had 64 Physical Directors and
4,399 physical examinations were made in 1921.
An interesting fact was bi ought out at the annual meeting of the
Toronto West End Y. M. C. A., on May 16th, where it was noted that
the local organization had enrolled 1,744 boys out of a total membership
of 3,446, making its boys' membership second only to that of Shanghai,
China, which had the largest number in the world. The Metropolitan
Board, of Toronto, at its annual meeting, on May 17, announced, in con-
nection with an appeal for more buildings and accommodation that, in
addition to the use of the buildings as real community centres, Y.M.C.A.
forms of extension work included activities with 187 churches, in 37
public school buildings. 11 high schools and 92 factories and industrial
plants, as well as with 17 groups of new Canadians to whom free in-
struction was being given. The Association in Toronto had, at that time,
a membership of 8.453, the laigest for any city of its size in the world.
The Canadian Manufacturers' Association. The Jubilee Con-
vention of this important organization, with its 4,200 members in all
parts of Canada, was held at Quebec on June 7-9, with 200 Delegates
present and President J. S. McKinnon of Toronto in the chair. On be-
half of the Province of Quebec, Mr. Premier Taschereau welcomed the
Convention and dealt upon historic considerations affecting his Prov-'
ince and economic condition- represented by the Association. Hon. J. E.
Caron, Minister of Agriculture, also spoke, and Mr. McKinnon, in the
THE CANADIAN MANUFACTURERS' ASSOCIATION
901
annual Presidential address, which had become an important public
document, urged co-operation and not detachment as the policy of the
time, unity, not groups, as the one essential of government for Canada.
An interesting event marking the 50th anniversary was the presenta-
tion to seven living past Presidents, who were present (and reservation
for others not present) of sterling silver vases suitably engraved. The
list of these gentlemen — all prominent in the public life of Canada — was
as follows: Sir Edward Kemp, J. F. Ellis, P. W. Ellis, W. K. George,
R. S. Gourlay and S. R. Psrsons, Toronto; the Hon. C. C. Ballantyne,
Sir Charles Gordon. J. H. Sherrard and T. P. Howard, Montreal; Cyrus A.
Birge and Robert Hobson, Hamilton ; Col. H. Cockshutt, Brantford ; Col.
Thomas Cantley, New Glasgow, N.S.; W. J. Bullman, Winnipeg; Senator
Nathaniel Curry, Montreal Another incident was the presentation to
the City of Quebec, in honour ot the meeting, of an exact replica of the
Coronation Chair of Napoleon ir connection with the centenary of his
death.
The valuable Reports from the various Committees and from the
Provincial Divisions followed and constituted a picture of Canadian con-
ditions and requirements as seen by shrewd business men. Resolutions
passed may be briefly summarized: (1) Favouring Tariff revision "pro-
viding an adequate tariff protection for Canadian enterprise"; (2) ap-
preciation of West Indies' Preferential arrangement and urging negotia-
tions along similar lines with Australia; (3) advocating establishment of
a Canadian steamship service via the Panama Canal between the Atlantic
and Pacific Coasts of Canada ; (4) approving the Canadian Government
Merchant Marine and urging Government support along lines of in-
creased efficiency; (5) declaring the creation of a National Research In-
stitute a measure of true economy and national value; (6) urging a
Conference between Dominion and Provincial Governments as to the
definition and allotment of taxation areas and sources of revenue; (7)
urging Canadians to support the Made-in-Canada idea and the purchase
of Canadian goods. At the annual banquet, on June 7th, Mr. Premier
Meighen spoke, and W. S. Fisher, the new President, was in the chair.
The new officers were elected as follows: President, W. S. Fisher,
St. John ; Vice-Presidents, John R. Shaw, Woodstock, and C. Howard
Smith, Montreal; Treasurer. Thomas Roden, Toronto. The following
were elected as Chairmen of Committees : Tariffs, Joseph Picard, Que-
bec; Transportation, A. F. Hatch, Hamilton; Legislation, C. J. Mac-
Farlane, Toronto; Membership, Paul E. Joubert, Montreal; Insurance,
Arthur Hewitt, Toronto; Industrial Relations, S. R. Parsons, Toronto;
Commercial Intelligence. J. R. McMurray, Toronto ; Publishing, J. F. M.
Stewart, Toronto; Education. B. W. Coughlin, Montreal. J. E. Walsh
was General Manager of the Association, and J. T. Stirrett, General
Secretary.
CANADIAN OBITUARY FOR 1921
Name Particular* Place Date
Adams, D.S.O., Lieut.-Col. Alexander Distinguished Canadian Officer Eastbourne July 22
Aikins, M.R.C.S., Moses Henry Professor Emeritus of Anatomy,
University of Toronto Toronto Dec. 19
Allen, J.P., William F Director of Standard Bank Bowmanville Apr. 5
Baillie, K.B.E., Sir Frank Noted Canadian Financier and
Business man Toronto Jan. 3
Ballantyne, D.D., Rev. James Former Moderator of Presbyterian
General Assembly Toronto Dec. 21
Barker, Rev. Enoch Well Known Congregational Min-
ister Toronto Oct. 30
Bassett, Henry Walter Eminent Railroad and Mining
Engineer Victoria Dec. 19
Beck, Lillian, Lady Wife of Sir Adam Beck; Red Cross
Official and Philanthropist Toronto Oct. 17
Bell, B.A., D.pged., Walter NehemiahProminent Ontario Educationist... Paris Nov. 23
Bernier, ex-M.p., Hon. Michael Minister of Inland Revenue 1900-
Esdras 1904; Member of Railway BoardSt. Hyacinthe July 29
Biggar, Emerson Bristol Well-known Journalist, Publisher
and Author Toronto May 31
Blackstock, K.C., George Tate Noted Criminal Lawyer, Politician
and Speaker Toronto Dec. 27
Bower, James 1st President United Farmers of
Alberta Red Deer May 16
Bremner, Lieut.-Col. James J Ex-Director of Bank of Nova
Scotia Toronto Feb. 21
Brown, Percival Ridout Former Business Manager Vic-
toria Colonist Victoria Sept. 23
Burgoyne, William Bartlett Editor and Proprietor St. Cath-
arines Standard St. Catharines Jan. 1
Busteed, Francis Ferguson Well known C.P.R. Official Vancouver Oct. 2
Butcher, Lieut.-Col. William Pat- Niagara-on-the- Dec. 24
rick Well-known Canadian Soldier Lake
Caine, James Gilbert Prominent Lumberman Toronto Feb. 7
Calder, M.L.A., John Alexander Member of Ontario Legislature Woodstock July 24
Cameron, K.C.M.G., Sir Douglas
Colin Ex-Lieut .-Governor of Manitoba... Toronto Nov. 27
Cameron, K.C., LL.D., The Hon. Judge of the Superior Court of
Lawrence John Quebec Quebec Jan. 30
Campbell, M.A., D.D., Rev. Robert.... Eminent Presbyterian Divine Montreal Mar. 13
Casey, Right Rev. Dominic J Prothonotary Apostolic Lindsay May 14
Cassels, Walter Gibson Prominent Financier Toronto Dec.
Casswell, M.D., James Well-known Physician Digby, N.B Feb. 22
Cayley, M.A., Rev. Canon Edward
Cartwright Prominent Clergyman Toronto Apr. 11
Chadwick, Austin Cooper Late Senior Judge of Wellington
County Guelph June 26
Chadwick, K.C., Edward Marion Well-known Canadian Lawyer
and Genealogist Toronto Dec. 15
Chown, George Young, B.A Registrar Queen's University Kingston Mar. 2
Clancy, ex-M.p., James Provincial Auditor for Ontario Toronto Jan. 10
Clarke, His Honour Lionel Herbert.. Lieut. -Governor of Ontario Toronto Aug. 29
Clark, Lieut.-Col. Walter Militia Officer and Crimean Vet-
eran Guelph Aug. 22
Clute, LL.B., K.C., The Hon. Roger Judge of the Supreme Court of
Conger Ontario Toronto Aug. 30
Cooley, B.A., Rev. John Wesley Ex-President The Hamilton Meth-
odist Conference Wiarton Mar. 5
Cowell, K.C., Zebulon Edwin Well-known Lawyer Bedford, Que June 21
Crawford, William Grend Director of Ceremonies in
Orange Order Toronto Dec. 23
Crosby, The Hon. Adam Brown Senator of Canada Ottawa Mar. 10
Crothers, K.C., B.A., The Hon.Ex-Dominion Minister of Labour,
Thomas Wilson Senator of Canada Ottawa Dec. 10
Crozier, U,.D., John Beattie Noted Economist & Philosopher.... London, Eng Jan.
Corrigan, B.A., D.D. Rev. Richard Well-known Methodist ClergymanToronto Jan. 27
Clouston, Annie (Easton) Lady Widow of Sir Edward Clouston
Bart Senneville June 28
Dale, M.A., William .Former Senator of Toronto Uni-
versity St. Marys Feb. 16
Dandurand, O.M.I., Rev. Father Pioneer Roman Catholic Mission-
Darbase ary, Ex-Vicar-General of Ot-
tawa Diocese St. Boniface Apr. 13
Davies, William Philanthropist and Business man Toronto Mar. 21
De La Durantaye, Mgr., Francois Vicar-General, Archdiocese of
Xavier Montreal Montreal Dec. 4
Denison, Mrs. Flora Macdonald Former President of Canadian
Suffrage Association Toronto May 23
Devlin, M.P., Emmanuel B Prominent Liberal Politician Montreal Aug. 30
1902]
CANADIAN OBITUARY, 1921 903
Name Particulars Place Date
Domville, P.R.G.S., Lieut.-Col. Hon.
James .................................................. Senator of Canada ............................ Rothesay ........... July 30
Dyer, M.A., B.SC., D.D., Rev. William
Pirrette ................................................ Former Principal of Albert CollegeToronto .................. Mar. 22
Edwards, B.A., B.psed., Clarence
Bartlett ................................................ Chief Inspector of Public Schools London .................... Nov. 2
Edwards, Hon. William Cameron.... Sena tor of Canada ............................ Ottawa .................... Sept. 17
Elwood, Hon. Edward Lindsey .......... Judge of the Saskatchewan Court
of Appeal ........................................ Regina .................... May 19
Emerson, Robert Bickerdike .............. Ex-President St. John Board of
Trade .............................................. St. John .................. Nov. 12
Englehart, Jacob Lewis ....................... Former Chairman of the T. & N.
O. Railway Commission .............. Toronto .................. Apr. 6
Ewart, i.s.o. , David .............................. Dominion Consulting Architect ..... Ottawa .................... June 6
Elliott, George R ................................... Prominent British Columbia Lum-
berman ............................................ Victoria .................. Mar. 3
Falconer, K.C., Alexander .................... Authority on Banking and Com-
mercial Law .................................... Montreal ................ June 3
Farwell, K.C., ex-M.t,.A., Charles
Franklin .............................................. Registrar of Deeds for Algorna ...... Sault Ste. Marie.. ..Mar. 30
Fernie, William ...................................... Pioneer Miner and Capitalist ......... Victoria .................. May 15
Findley, Thomas .................................. President, Massey Harris Co ......... Toronto .................. Dec. 19
Fisher, B.A., ex-M.p., The Hon. Minister of Agriculture for Canada
Sydney Arthur .................................... 1896-1911 ...................................... Ottawa .................... Apr. 9
Fowler, B.A., J. Harry .......................... Journalist ............................................ London .................... Oct. 12
Franchere, A.R.C.A., Joseph Charles...Well-known Canadian Artist .......... Montreal ................ May 12
Frankland, Henry R ............................. Collector of Inland Revenue .......... Toronto .................. May 7
Gage, Knt., IX.D., Sir WilliamCanadian Philanthropist and
James .................................................. Publisher ....................................... Toronto .................. Jan. 14
Gagnier, S. J. Rev. Father Alex-
ander .................................................... Well-known Jesuit Father ................ Guelph .................... Feb. 10
Gallant, The Hon. Benjamin .............. Minister without Portfolio, P.E.
Island .............................................. Charlottetown ....... Oct. 26
Gillespie, George .................................... Prominent British Columbia
Banker ............................................ Victoria .................. June 30
Graham, M.D., Charles Everett .......... Former Mayor of Hull .................... Hull ........................ Jan. 13
Graham, Thomas McLeay .................. Vice- President Montreal Slar Pub-
lishing Co ....................................... Montreal ................ Sept. 12
Grand, James ........................................ Pioneer Commercial Man ................ Toronto .................. Nov. 7
Griffin, C.M.G., U..D., Martin
Joseph .................................................. Parliamentary Librarian .................. Ottawa .................... Mar. 19
Hall, D.D., Rev. Alfred .......................... Senior Chaplain of British and
Foreign Sailors Society ................ Toronto .................. Apr. 1
Harrison, M.B., J.R.C.S., Howard ........ Brilliant Canadian Surgeon ............ Toronto .................. Aug. 29
Hay, Edward ........................................ Former General Manager, Im-
perial Bank of Canada ................ Toronto .................. July 9
Hays, K.C., Louis Martin .................... Senior Judge Wellington County
Court .............................................. Guelph .................... Apr. 29
Helbronner, Jules ...... .............. Former Editor-in-Chief of La
Presse, Joint Editor of the Can-
adian Gazette .................................. Ottawa .................... Nov. 25
Heriot, John Charles Allison .............. Noted Architect ................................ Montreal ................ July 24
Hespeler, Hon. William ....................... Speaker of an early Manitoba
Legislature ...................................... Vancouver .............. Apr. 18
Hibbard, K.C., Lieut.-Col. Frederick Chairman Public Service Corn-
William .................................... mission of Quebec .......................... Montreal ................ Jan. 6
Hill, Ven. Archdeacon Arundle
Charles ................................................ Distinguished Cleric and Scholar.... Toronto .................. Aug. 22
Hill, M D , M.R C.S., L.R.C.P., Walter... Prominent Montreal Surgeon ......... Montreal ................ July 23
Hoskin, K.C., IX.D., D.C.I,., John ......... Eminent Canadian Lawyer...... ....... Toronto .................. Oct. O
Hosmer, Lieut.-Col. Edward Arthur Prominent Manitoba Military
Christopher ..................... Man ................................................ Winnipeg ................ Feb. 12
Hughes KCB Lieut -General, TheCanadian Soldier and Parliamen-
Hon.'SirSam ..................................... tarian, Minister of Militia in
1911-16 ............................................ Lindsay .................. Aug. 24
Howard, F.R.S.C., Robert Jared Bliss-Well-known Surgeon, Husband of
Lady Strathcona ............................ London, Eng ......... Jan. 9
Irving, Thomas Craik .......................... Manager of Bradstreets ... ... .....Toronto .................. Dec. 5
Jamieson, B.A., Thomas ...................... ^£1*^™.°^°**'. .^Ottawa .................... Feb. 9
Jarvis Lieut -Col.William Munson Former President Board of Trade St. John .................. Sept. 17
Johnson, M.B..M.R.C.S., Arthur Jukes Authority on Medical Jurisprud-^^^ ^^ ?
Jones, ex-M.P., Herbert L .................... Pre' Weymouth '"''"
Kennedy, Kt., U..D., D.C.I,, Sir J**»gS*<* ................ Oct. 25
King, M.D., John Sumpter ................... Physician and'writer ........... ...Toronto .................. Feb. 14
King, Lieut,Col. William C ............... M^1C°™ . .... ^l '.Bowmanville .......... May 9
Kirkpatrick, M.D., Everind A ............. Prominent'physician ........................ Halifax .................... Sept. 23
904 THE CANADIAN ANNUAL REVIEW
Name Particulars Place Date
La Palme, Beatrice Canadian Prima Donna Montreal Jan. 10.
Laurier, Zoe (Lafontaine) Lady Window of Sir Wilfred Laurier Ottawa Nov. 1
Lawson, LL.D., John Davidson Dean-Emeritus of Law Dept.
Missouri State University Chicago, 111 Oct. 28
Leishman, D.D., Rev. John Pioneer Presbyterian Missionary Regina June 2
Liddell, James William Junior Judge of Stormont, Dun-
das and Glengarry Cornwall Aug. 4
Lindsay, Rev. Canon Lionel St. Dean of the Metropolitan Chapter
George of Quebec Quebec Feb. 10
Lowery, Col. Robert T Pioneer and Journalist of British
Columbia Grand Forks May 20
McBride, D.D., Rev. Denis Joseph Well-known Catholic Scholar Toronto Mar. 13
McClary, John President and Founder, McClary
Manufacturing Co London Dec. 1 1
McCraney, ex-M.p., George Ewan Well-known Politician Saskatoon Mar. 18
McDonald, M.A.J D.C.L., Herbert Senior County Judge for Leeds
Stone and Grenville; Chancellor, Dio-
cese of Ontario Brockville Jan 7
McEwing, CX-M.IV.A., James Former Provincial Member for
North Wellington Orangeville Aug. 15
McGibbon, M.P., Peter R Well-known Politician Lachute Dec. 18
McGoun, M.A., B.C.I,., K.C., Archi- Prominent Legal Authority, well-
bald known Writer and pioneer Ad-
vocate of Imperial Unity Montreal June 5
McKay, K.C., Robert Eminent Lawyer Toronto Nov. 6
McKimm, George Frederick Proprietor and Editor Smith's
Falls Record News Smith Falls July 14
McLaughlin, James Prominent Manufacturer and Ma-
son Owen Sound Feb. 12
McLaughlin, Robert Founder of McLaughlin Carriage
Co Oshawa Nov. 23
McLeod, M.B., Col. Harry Milton Prominent in Provincial
Politics and Military Circles Fredericton Jan. 8
McSweeney, The Hon. Peter Senator of Canada .,. Moncton Feb. 2
MacDonald, M.D., John Phelan President Central Alberta Medical
Association Edmonton Nov. 20
MacMath, Hugh Pioneer Municipal Official of York
County Toronto Feb. 20
Main, John James President Policy Holders Mutual
Life Insurance Co Toronto Jan. 14
• Meredith, K.C., Edmund Famous Criminal Lawyer London Nov. 21
Millman, M.D., Thomas Supreme Physician I.O.F Toronto Nov. 15
Moffat, William General Manager, Imperial Bank
of Canada Pembroke June 17
Money, MX. A., Stephen Member of Saskatchewan Legis-
lature Shackleton Oct. 5
Mount-Stephen, BART., G.c.v.o., Sir Millionaire Philanthropist and a
George Stephen, Lord Builder of the Canadian PacificBrocket Hall,
Railway Harfield, Eng....Nov. 29
Mundy, Edward Pioneer Newspaper Publisher Oshawa Jan. 23
Myers, Robert Hill Senior Judge County Court Eas-
tern Judicial District _ Winnipeg Nov. 16
Moorehouse, B.A., M.B., L.R.C.P., Former Vice-Chancellor London
L.R.C.S., Walter Hoare University London Oct. 25
Nelles, Lieut.-Col. Alfred Westland.. Railroader and Militia Man Toronto Dec. 27
Nicholls, The Hon. Frederic Senator of Canada, and Prominent
Financier; President of Can-
adian General Electric Co Battle Creek Oct. 25
Nixon, M.D., C.M., Alfred Westland.. Ex- Member of Ontario Legis-
lature Georgetown Apr. 28
Ogden, Albert Well-known Toronto Lawyer Toronto Sept. 16
O'Neill, John Apostolic Syndic of the Franciscan
Order Montreal June 2
O'Reilly, M.D., Gerald Prominent Physician Hamilton Jan. 2
Orr-Lewis, BART., Sir Frederick Orr.. Prominent Financier and Manu-
facturer; Director Merchants'
Bank of Canada Cannes, France Nov. 18
Palmer, John G President Canadian Kodak Co Toronto Aug. 4
Paterson, Thomas William Former Lieut.-Governor of British
Columbia Victoria Aug. 29
Pedley, Francis Former Deputy Superintendent of
Indian Affairs : Ottawa Dec. 14
Pelletier, Joseph H High Sheriff of Madawaska Co Edmundston Nov. 21
Pelletier, U,.D., The Hon. Louis
Philippe Judge of Quebec Court of Appeals-Quebec Feb. 8
Peterson, K.C.M.G., IX.D., D. utt.,
Sir William Noted Educationalist and ex-
Principal of McGill University. .London, Eng Jan. 5
Philhpps-Wolley, Jane, Lady Widow of Capt. Sir Clive Phil-
lipps-Wolley Corfield, B.C Apr. 29
Power, U..D.. The Hon. Lawrence
Geoffrey Senator of Canada Halifax Sept. 12
Racine, MX.A., Damase Member of Ontario Legislature Ottawa Dec. 2
CANADIAN OBITUARY, 1921 905
Name Particular. Name Date
Rankin, Colin ........................................ Ex-Chief Factor of Hudson's Bay
Rees.Llewllyn ....................................... SupSSfcof Music" in fOTM<»*"* ................ A^ 20
8^£-l^ 2
Henry .................................................. Professor-Emeritus of Victoria
Richardson, EX-M.P., Robert Lorne^.O^^ounder of ;' Winnipeg
Ritchie, Thomas .................................... Pro^uT'citlzen and philan:WinniP<* ................ Nov. 6
thropist Belleville T>»/> 7
Ross ex-M.P., Alexander Charles ....... Well-known" Mining Man.'.:: ...... Montreal ......... July 30
Rourke, James Ernest .......................... Controller of Currency, Dept. of
Ross, M.A., D.D., Rev. James Stew.it Jfada^ M*£^' Df^^ .............. s»t *?
Robertson James F ............................. Founder of Rothesay College ....... St John .......... jS 15
Savoie, The Hon. Franois Theat ...... Member Legislative Council 'of
iSt1' RlT' Edimmd ^win ............... Eminenf Methodist ''^^'^n^"9^^I\\"""\"""^:. 26
Sedgwick, D.D., Rev. Thomas ............. Former Moderator of Presbyterian
General Assembly ............. Tatamagouche Dec 20
'
.
Right Hon. Arthur Lewis ................ Formerly Chief Justice of Alberta;
0. Secretary of State for Canada.... Ottawa ............. Jan. 22
>mg ; D.I, s., o L.S Josiah Gershom.. Prominent Engineer .......................... Meaford .................. July 19
Smith, Alexander Bruce ...................... Manager of Telegraphs, G.T.R.
System ............................ ' ...... '....'...^Montreal ................ Feb. 6
Sparling, B. A., D.D., Rev. William ....... Eminent Methodist Divine ......... London... Nov 21
Spetz, C.R., Rev. Father Theobald ..... Well-known Catholic Priest ............ Guelph ........ ....'.'.'.'.'..'.'.Dec.' 1
Stewart, James ...................................... Well-known Railway Con tractor... Andover, N B... Sept 22
Stock, ex-M.p., Valentine ...................... Prominent Citizen of Oxford Co....Tavistock.... Oct 2
btrong, Wtlham ...................................... Noted Painter and Etcher .............. Bournemouth,
Sumuer, George, .................................... Former President Montreal Board
of Trade .......................................... Montreal ........... Sept. 25
Sweeney, K.C., Hon. Francis J ............ Ex-Surveyor-General for New
Brunswick ...................................... Montreal ................ May 2
Symonds, M.A., IX.D., D.D., Rev.
Herbert .............................................. Eminent Anglican Divine ................ Montreal... . . May 24
Stovel, Augustus B ............................... President Western Canada Bap-
tist Union ........................................ Hot Springs, Va....Mar 26
Sutherland, M.^.A., William G ............ Prominent Citizen ............................ Charlottetown ....... May 3
rilley, M.A., Ph.D., William Ed ward.. Well-known Educationist ................ Toronto .................. Dec. 10
Tilley, Alice, Lady ................................ Prominent Red Cross Organizer
and war worker; widow of Sir
Leonard Tilley .............................. St. John .................. May 25
Tufts, D.C.I,., John Freeman ............... Ex-Professor of Economics and
History, Acadia University ......... Wolfville ................. Feb. 7
Tomlinson, Maj. Alfred T .................. Noted Canadian Engineer .............. Toronto .................. Jan. 20
Wallace, EX-M.P., Captain Thomas. ..Prominent in Political and Orange
Circles .............................................. Woodbridge ........... Feb. 20
White, Henry ........................................ Police Magistrate ............................. Port Hope .............. Sept. 30
White, M.D., C.M., Frederick J, ........... Former Mayor of Moncton ............ Moncton ................ Apr. 10
Wilson, B.A., The Hon. William .......... Former Judge of County Court of
York, Sunbury and Queens ........ Fredericton ............ Sept. 30
Wilson, M.D., L.R.C.P., Robert James Well-known Physician ..................... Toronto .................. Mar. 19
Wilson, Rev. Canon William CharlesVenerable Anglican Clergyman ...... Springhill, N.S ...... Sept. 26
Worsnop, J.P., Lieut.-Col. Charles A.Noted Soldier and Sportsman ........ Vancouver .............. Dec. 30
Witton, ex-M.p., Henry Buckingham. Noted Scholar and Manufacturer... Hamilton ................ Nov. 8
Yeomans, M.D., Horace A ..................... City Health Officer .......................... Belleville ................ Oct. 31
Crankshaw, K.C., James Well-known lawyer and author of
Legal works Montreal Dec. 16
Dey, M.A., D.C., Rev. William John.... Well-known Presbyterian Minister Simcoe Dec. 14
Elder, C.M.G., B.A., M.D., John M Eminent Surgeon Montreal
Fyshe, M.D., James Carlyle Supt. of Hospitals Edmonton Waterhole Dec. 6
Gray, Alexander Miller Director, Dept. of Electrical Eng-
ineering, Cornell University Ithaca, N.Y Oct. 13
Hill, B.A., Sc., Arthur Edmund Bre-
ton Noted Canadian Engineer Vancouver Dec. 28
Robertson, Dr. George Head of Dept. of Geology and
Zoology, Redlands University.... Redlands, Calif Nov. 14
Spencer, ph.D., P.O.S., LL.D., Joseph
William Winthrop Noted Canadian Geologist Toronto Oct. 9
Myrand, Ernest Librarian, Quebec Parliamentary
Library Quebec May 31
Jennings, Milton Robert Editor and Managing Director
Edmonton Journal Victoria, B. C Feb. 17
SUPPLEMENT
Canadian Financial and Business Conditions
Annual Reports and Addresses
SIR FREDERICK WILLIAMS-TAYLOR, D.C.L.
General Manager of the Bank of Montreal; Elected in 1921 President of
the Canadian Bankers' Association.
THE
BANKS OF CANADA
A GREAT NATIONAL SYSTEM
The Canadian Banking system is of composite origin. In the
first enactments incorporating Banks in Canada there will be found
features derived from the legislation under which banking in the
United States after the Revolution was first carried on. For ex-
ample there was the denial of the right to a bank to lend money
upon the security of real estate. A tremendous wave of speculation
in lands followed the close of the Revolution in the United States in
1783 and it was found that banking capital and assets would be
hopelessly tied up if lands could be taken as security. The pro-
vision in the early American charters in this behalf and later in the
Canadian acts was duly brought into the Bank Act where it still is,
and a wise provision it is in view of the needs of this new country for
liquid capital.
But the development which began more than one hundred
years ago was largely along the lines of Scottish practice, a notable
characteristic of which was the branch Bank. This feature differ-
entiated the system completely from that obtaining in the United
States. One tradition of Scottish banking has been steadily fol-
lowed, namely the lending of money, not upon securities only as is
usually the case in most countries, but upon character. If there is
confidence in the business ability, coupled with belief in the un-
doubted integrity of the applicant, Canadian Banks, in common
with their Scottish prototypes, have always been willing to make
reasonable advances provided the borrower possesses a surplus of
liquid assets over liabilities. How great the advantage to a new
country, in which there are few forms of inherited wealth, is this
policy of Canadian banking administration it is impossible to
estimate.
Every country has its good times and its bad times, its periods
of prosperity and its periods of depression. In this respect Canada
has been no exception. Looking back over the economic history of
the country, however, one is struck by the fact that it has been the
consistent experience of Canada to pass through periods of depres-
[909]
910 THE CANADIAN ANNUAL REVIEW
sion with a truly remarkable freedom from panics and financial
crises. In the United States these periods have often been accom-
panied by panics and Bank failures. In Canada, on the other hand,
the Banks have consistently proved to be a steadying and stabilizing
influence, due to the comprehensive character of the system and
fluidity of their funds.
Banking is more distinctly a profession in Canada than it is in
the United States. A successful newspaper man in recent years be-
came the executive head of one of the greatest banking institutions
in that country. But he did not long remain in that post. Such
a selection would be impossible in Canada. The youth, as soon as he
has completed his preliminary education in Canada, enters upon
practical duties in a banking office. Through fitness and by virtue
of proven integrity he reaches the higher executive posts. In that
way the men responsible for providing the "sinews of war" for
financing the country's agriculture and commerce, and incidentally
responsible for the safety of hundreds of thousands of trusting
depositors, enjoy the maximum of training and experience.
If there is one feature of the system that is more beneficial
than another in a country such as Canada, in a large part of which
pioneer conditions prevail, it is the branch Bank. To gather up
money in the form of deposits in the older and prosperous sections
of the country, and employ it in the newly settled areas where it is
most needed, is the function of Canadian Banks with branches in
both the older and newer sections. Because of this mobility of
capital the rates charged in the portions of the country where wheat
and other cereals are now, for the first time, grown are lower than
the rates now or formerly charged under corresponding conditions in
the United States. A unit Bank with no branches, raising its capital
and receiving its deposits locally in the newly settled parts of the
Prairie Provinces would, because of the dearth of surplus funds for
deposit and the higher interest rates that would be necessary to
attract deposits, not long survive unless excessively high interest
rates were obtained for loans.
On May 31st, 1922, the seventeen Banks doing business in
Canada had 4,576 branches. There is scarcely a hamlet in the
whole country that has not a branch Bank. Indeed, in the opinion
of many, Canadian bankers in the desire to be first on the ground for
the business that is to be got, have gone too far in this direction.
THE BANKS OF CANADA; A GREAT NATIONAL SYSTEM 91 1
There is a branch Bank for every 1,910 inhabitants, and while exact
comparisons with other countries are difficult it is doubtful if there
is any country in which banking facilities have been brought nearer
to all classes of persons than in Canada.
Canadian Banks have done much to facilitate the Foreign trade
of the country by establishing branches (two hundred, May 31st,
1922) in many other countries, including branches in London, Paris
and Barcelona in Spain; in New York, Boston, Chicago, San Fran-
cisco, and other Pacific Coast cities in the United States; Havana
and every other important centre in Cuba; Jamaica, Trinidad and
Barbados, and in nearly every other Island in the West Indies of any
commercial imporantance ; in Mexico City and British Honduras;
in Venezuela, British Guiana, Brazil, Uruguay and Argentine. In
addition Canadian Banks carry on all the banking business in New-
foundland. The criticism is sometimes made that Canadian Banks,
by their foreign branches, take money out of the country and lend it
abroad to the detriment of Canada. While it sometimes happens
that more money is loaned abroad than is received in deposits
abroad the reverse is frequently true. For example on the 31st day
of May, 1922, the amount of loans of Canadian Banks made through
foreign branches was $331,443,061 while the deposits received in the
same branches amounted to $367,434,235. In addition it is of great
advantage to domestic banking for Canadian Banks to be able
to employ funds at call in New York and London where a substantial
part of the loans referred to are made. There is no real call money
market in Canada. Money on call in Canada could not be obtained
if "called." It is true that very low interest rates are on the average
received on call money in these Foreign centres, yet the ability to
get the money on demand to be transferred in times of financial
stress to Canada, and thus stabilize conditions, makes it the part of
wisdom to have, as a sheet anchor of the system, call money abroad.
Canadian bank-notes furnish a safe and flexible currency
medium. All the assets of all the Banks are ultimately behind the
bank-note issue of each Bank. The volume of bank-notes to-day
has grown beyond the issue permitted against paid-up capital until
more than one-third of the issue is secured by gold and Dominion
notes in the Central Gold Reserve. Great progress in the redemptive
quality and convenience in form of the currency of the country has
been made since the days when beaver skins and moose skins were
legal tender and by law could not be refused, at their market price,
in payment of debts.
FINANCIAL POSITION OF CANADA
ANNUAL ADDRESSES AND REPORTS
OF
THE BANK OF MONTREAL*
The 104th Annual General Meeting of the Share-
holders of the Bank of Montreal was held on Dec. 5,
1921 at the Bank's Headquarters in Montreal, and
the following Director's Report for the year ending
Oct. 31, 1921, was read by the General Manager,
Sir F. Williams-Taylor:
Balance of Profit and Loss Account, 30th October, 1920 $1,251,850.03
Profits for the year ended 31st October, 1921, after deducting
charges of management, and making full provision for all
bad and doubtful debts 3,949,796.58
The 104th
Annual
Report of
the Bank.
Quarterly Dividend 3% paid 1st March, 1921 $ 660,000.00
Quarterly Dividend 3% paid 1st June, 1921 660,000.00
Quarterly Dividend 3% paid 1st September, 1921 660,000 . 00
Quarterly Dividend 3% payable 1st December,
1921 660,000.00
Bonus 2% payable 1st December, 1921 440,000.00
$5,201,646.61
War Tax on Bank Note Circulation to 3 1st Octo-
ber, 1921
Reservation for Bank Premises
$3,080,000.00
220,000.00
400,000.00
3,700,000.00
Balance of Profit and Loss carried forward $1,501,646.61
Address by
Sir Vincent
Meredith,
Bart.,
President
of the
Bank of
Montreal.
Our banking year just closed has witnessed a
further readjustment of prices and slackening trade.
It has been a year of unremitting anxiety, entailing
constant vigilance in order to avoid serious losses.
I need not remind you that the proverbial policy of
your Bank has been, as it still is, to maintain a strong
position by means of abundant liquid resources, so
that in times of stress we may be in a position to meet
the legitimate demands of our customers, as well as such exceptional
calls in the general interest as may be made upon us. While our
profits have naturally fallen off in comparison with the previous
year, they have been sufficiently large to warrant your Directors in
paying a bonus of 2 per cent, in addition to the quarterly dividend
of 3 percent. A substantial sum has, as well, been carried forward
to credit of Profit and Loss.
*NOTE. — For History of the Bank of Montreal see Supplement to The Canadian Annual
Review for 1910; for succeeding Reports and Addresses, see volumes of The Review from 1911
to 1920.
[912]
BANK OF MONTREAL— ANNUAL ADDRESSES AND REPORTS 913
The foreign trade of Canada has suffered serious diminution
this year in terms of value, and there is no doubt that in quantity
also there has been a shrinkage. In this respect we do not differ
from other nations and, indeed, make favourable comparison with
many of them. The Fordney tariff in the United States has hit our
farmers hard, the export of animals, agricultural and dairy products
to that country in October last amounting to only $7,329,000,
whereas in the corresponding month a year ago, these shipments had
a value of $28,619,000. In the five months elapsed since Congress
raised tariff rates, the export of farm products from Canada to the
United States has decreased from $62, 166,000 'to $17,399,000. A
year ago we were doing an exceptionally large foreign trade, both
inward arid outward, quite the greatest in the history of Canada. In
the seven months to October 31, 1920, for example, the foreign trade
of Canada had a value of $1,497,000,000, made up of $818,782,000
of imports and $678,128,000 of exports; while in the corresponding
period this year, aggregate foreign trade the corresponding period
of imports and $678,128,000 of exports; while in the corresponding
period this year, aggregate foreign trade amounted to only $853,-
868,000. In other words, this branch of commerce fell off 43 per
cent. The bright spot in the figures is the closer balance of trade,
the excess of imports over exports this year having been $22,630,000,
whereas last year the excess was $140,654,000. We still remain,
however, a debtor to the United States, not only in respect of trade,
but for interest payments on loans from that country, and until this
condition is righted, I apprehend the premium on New York funds
will continue to our detriment.
The year's harvest, taken in the aggregate, was fairly abundant,
but in parts of the western provinces, and particularly in central
and eastern Canada, prolonged summer drought stunted growth
and impaired the yield. The outturn of wheat is probably 50,-
000,000 bushels larger than last year and coarse grains generally
have yielded well. The stimulating effect of a good harvest would
have been experienced but for the serious decline in prices, which has
cut into farmers' profits, and, in a number of instances, has actually
involved loss on the season's operations. Another year, however,
may retrieve this situation by reduction in price of articles con-
sumed by agriculturists, including that of labour.
Taxation has everywhere become a serious burden. In our
own country it is heavy even to the point of impeding industry and
trade, and I know of no other means of redress than economy in
public and private expenditure.
There is no greater economic truth than that if you take from
the people their accumulated savings by over-taxation, you stifle
all initiative and enterprise and your revenues will fail, for those
having surplus funds will probably find means of investing out of
reach of the tax-gatherer where they will not contribute to the
wealth and prosperity of the country. Taxation can be lessened
in two ways only — by reducing public expenditure and by increasing
population ; and the hope is that both means will be employed.
30
914 THE CANADIAN ANNUAL REVIEW
The past year in Great Britain has been marked by gradually
falling money rates. Inactive trade and renewed inflation through
Government borrowings are the chief cause of this monetary ease.
Trade has sunk to a very low ebb there, as elsewhere, the improve-
ment noticed in the spring having been chekced by the coal strike.
Wholesale prices have had a substantial fall, which has not been
followed to the same extent by retail prices. Some progress is
being made in the effort to cheapen production, the high cost of coal
being one of the chief obstacles to improvement. In considering
world trade, too little stress is placed on the elimination of Russia,
whose enormous productive power enabled her to absorb great
quantities of foreign goods. Germany's financial position is re-
garded as dangerous at the moment, and a further depreciation of
the mark might easily bring about a breakdown. The fall in the
value of the mark is reacting on German world competition, and
it looks very much as though this competition will greatly lessen in
the near future.
In the United States deflation has proceeded more rapidly
than it has with us, and I am inclined to think that country is at
the turning towards improving conditions. These, however, I fear,
will be spasmodic and slow. It is noteworthy that a tendency to a
broader view of international affairs, both monetary and political,
is in evidence.
The vast and growing accumulation of gold, now amounting
to three and a half billions, or between 43 and 44 per cent, of the
total monetary gold holdings of the world, is causing some un-
easiness with regard to its disposal. In the past year half a billion
more gold has been poured into the United States' reservoir. The
granting of loans or credits to foreign countries in order to restore
economic conditions abroad would, I believe, be the logical and wise
solution of the problem. So far, proposals of this nature have not
met with general acceptance. The cancellation of war debts, if
such a suggestion be made, would not, I think, be received with
favour, nor do I believe there is any disposition on the part of the
American people to dispossess themselves of their vast holdings of
gold for the purpose of loaning to distressed foreign countries, or to
grant long-term credits unless adequate security were provided to
secure repayment, and this at present is non-existent. Indeed,
there appears to be a feeling to disregard the possible menace of re-
newed inflation and distribute this wealth in development work in
their own country. The tendency to a broader viewpoint in inter-
national affairs, to which I have referred, will, I hope, grow as time
goes on, and the one country in the world which is in a position to do
so will extend the relief so urgently required by an economically and
commercially distressed Europe.
The state of the international exchanges continues to be a dis-
turbing element in business. Conferences have been called for the
purpose of devising some feasible plan for establishing and restoring
rates, and the subject has been widely discussed by economists
and bankers, but so far no practical proposals have been made to
BANK OF MONTREAL — ANNUAL ADDRESSES AND REPORTS 915
yield the result desired. Meanwhile, the only certain way of
bringing about exchange stabilization is by nations promoting larger
production, by removing every menace to peace and by the restora-
tion of sound financial budgets. There can be no profitable inter-
national commerce until the currencies of European countries
acquire greater value, and this cannot be accomplished until the
printing press ceases to be the recourse of impoverished countries.
It is only recently that the importance of foreign trade and
foreign credits in the restoration of exchange and in bringing about
a more prompt return to prosperity, has been generally recognized.
Although difficulties of financing have not by any means been
cleared up, it is being realized that domestic trade is largely depend-
ent on export business, even thoug its volume be small. The
British Government, as you are aware, has given the lead in in-
augurating a scheme for facilitating exports to impoverished coun-
tries through the Export Credit Department of the Board of Trade,
which is empowered to advance a large sum of money for this pur-
pose. The United States Government has legislated in the same
direction by authorizing banking and credit corporations to en-
gage in foreign trade, and it may be that Canada will find a way to
participate in similar schemes.
The public finances of Canada deserve more than superficial
consideration. The net debt of the Dominion stands at almost
$2,350,000,000 or ten times the pre-war figure, in addition to which
there are $256,000,000 railway loans guaranteed by the Govern-
ment. These figures are exclusive of the bonded obligation of the
Government railways not directly guaranteed by the Dominion
Government, amounting to $532,000,000. Regret is neither felt
nor expressed at the expenditure of two billions on account of
Canada's share in acieving victory in the late war, but the enormity
of this debt and the burdensome taxation entailed should be the con-
stant concern of those who direct public affairs; nor can we regard
with other than disquiet the large and mounting debt of the national
railways and their subsidiary, the Mercantile Marine. It has been
my consistent practice to avoid anything savouring of politics, and
if I allude to the railway question, it is only because it relates in-
timately to public financies, to taxation and so to the daily business
of the country, already bearing heavy imposts to sustain the public
credit.
In Great Britain and in the United States, as is well known, the
railways were returned to private ownership because the operation
by the Government was resulting in financial chaos. With our own
national system of railways it is well to face the facts. There has
to be met an annual fixed charge of about $66,000,000 plus loss in
operation, which last year amounted to $32,000,000 and will this
year be not greatly less. In addition, a sum estimated at $150,-
000,000 has to be provided in the next few years for replacements and
betterments. I see no reason to change the views I have expressed
to you on former occasions, nor do I look for any marked improve-
ment in these conditions so long as the roads continue under public —
916 THE CANADIAN ANNUAL REVIEW
that is, political — ownership and operation, which all experience
condemns.
Only second in importance to our railway problem is that of
immigration. As is well known, following upon the cataclysm
of a great war there has come in the past a desire for change and an
exodus of people from many countries has resulted. No such
movement has yet occurred following the recent upheaval in
Europe, but I think Canada has an exceptional opportunity of filling
up her waste spaces if a vigorous, sustained immigration policy is
set in motion. We need people upon the land — the cities will take
care of themselves. Now that the United States has restricted the
inflow into that country, now that Great Britain has awakened to
the advantage of directing her emigrants to outer parts of the Em-
pire, the time seems opportune for Canadian agencies of all kinds to
exhaust every effort to turn the stream to our shores so that our vast
uncultivated arable territory may be populated and made productive.
In the most propitious circumstances of trade, prophecy is
rash, and in the complicated conditions that now beset us, I will
refrain from the risk of forecast. What we do know is that Canada
has withstood the shock of deflation and readjustment in a manner
which has afforded gratification to our own people and has caused
much favourable comment abroad, but a return to pre-war standards
cannot be expected at once and probably not for a considerable
time to come. The position is still full of difficulties and the way
to sustained improvement is not yet clear. While there has been a
revival in some lines of business, in others deflation has not yet run
its course and stocks are being carried which possibly may have to
be written down to lower replacement values.
The revival now being experienced, possibly based upon a
demand in consequence of depleted stocks, has given a temporary
spurt to buying. I look for a period of rises and falls as demand
exceeds supply or otherwise. A return to normality will be has-
tened if and when labour realizes that war inflation wages cannot be
continued, and that the changed economic conditions necessitate
more efficiency and greater production if we are to compete suc-
cessfully in the world's markets. Increased production will, with-
out doubt, be followed by a lowering of prices, larger consumption
and fuller employment.
No survey of the business world, however brief, can omit
that matter of supreme importance, the Washington Conference on
the Limitation of Armaments, the promising progress of which can-
not be viewed with other feeling than that of intense satisfaction.
Remembering that current commercial disturbance is the con-
sequence of war, the necessity of averting its recurrence becomes
obvious. Equally apparent is it that the weight of taxation now
impeding the employment of capital is largely the direct product
of war. Though the utmost hopes may not be fulfilled, great gain
will come from reduction of expenditure on armaments and the
lessened taxation thereby made possible. In no small measure the
restoration of normal world trade depends upon the outcome of the
BANK CF MONTREAL — ANNUAL ADDRESSES AND REPORTS 917
conference. A happy issue will give that confidence which creates
credit and will go far towards abridging the period of liquidation
and reconstruction.
In presenting the 104th annual balance sheet of
Address by the Bank I will explain the chief changes which it
bir i-r, jrick discloses, and will refer briefly to the most important
raV/o^oc L events bearing upon our affairs during the past year.
General ^** alterations to our Head Office building, necessi-
Manager tated by our growing requirements, were completed
of the Bank. ^ast January, and I think it is universally agreed that
the harmonious union of practical utility with artistic
impressiveness is beyond criticism.
The banking world is passing through the most troubled period
in its history, but it is fortunate that this state of affairs has been
unattended by financial panic. Inevitably, losses brought about
through the unprecedented drop in the price of commodities and the
heavy decline in the market value of securities have in many in-
stances fallen indirectly upon the banks. More money has been
lost by foreign banking institutions operating in certain directions
abroad than ever before in a similar period in any country.
I think it may be asserted that in Canada banks generally have
been fortunate when compared with those of other countries, and
while doubtless all Canadian banks have lost money in loan ac-
counts that have "gone bad" during the past year, no disaster has
developed. We do not blind our eyes to the fact that 1921 has been
an exceptionally hard year for many of our customers, and, there-
fore, we have considered it prudent to take an even more con-
servative view than usual of our loan accounts in estimating what
might be classed as doubtful. It is a satisfaction to be able to
assure you that our own actual losses have been moderate, and
though profits have shrunk, we have come through safely and can
report our business as a whole as being in a secure condition, while
our position is stronger than ever, with amply liquid assets to meet
any contingency.
Our cash and quick assets are 62-27% of our liabilities to the
public. To those not in close touch with commercial affairs it may
be enlightening to state that the chief cause of the reduction in our
profits is the lower rates of interest that have ruled in the large
money centres during the year. Furthermore, our loans in Canada
are less by $37,000,000 than a year ago, largely because of the gen-
eral slowing up of business. No one should count on a reduction of
interest rates for commercial loans in Canada at the present time,
for during the war years rates did not rise here as they did in other
countries, and they are still moderate.
A year ago the inflation in trade was at its height, as is demon-
strated by the fact that the aggregate loans in Canada of Canadian
Banks was 80'8%> of their total deposits within the Dominion.
The latest figures available show the ratio as 77*5%. The present
adverse trade conditions in Canada came as no surprise to us, seeing
918 THE CANADIAN ANNUAL REVIEW
that for many months we had the conviction that a reverse was
certain to ensue. We therefore continuously cautioned our bor-
rowers against an inevitable period of falling prices with diminished
demand for all commodities. The result has been that the greater
number are in a comfortable position and our current loans are in a
more satisfactory condition than would otherwise have been the
case.
As you are aware, in this connection the subject of trade defla-
tion has become a world- wide theme, but the trouble is that many of
our merchants and manufacturers simply cannot deflate at present.
The demand for their goods has disappeared, while money borrowed
from the banks in anticipation of sales cannot be repaid — hence
what are termed "frozen credits. " Bank loans in many cases have
thus become fixed, and the liquid surplus in mercantile balance
sheets represented by inventories has, for the time being, lost its
true meaning. As usual, the banks have come to the rescue, and,
speaking for our own institution, we have maintained to the limit of
prudence our acknowledged century-old policy of carrying deserving
customers in difficult times.
A sign of the times is revealed in the number of commercial
failures. During the twelve months ended 1st October they num-
bered in Canada and Newfoundland 2, 02 2, which is more than those
recorded for any previous similar period since 1915, when the num-
ber was 3,016. Provincial and Municipal Governments have un-
dertaken capital expenditures and refunding operations on an ex-
tensive scale without borrowing other than temporarily from their
bankers, favourable conditions having enabled them readily to
market their securities. Our customers in this class owe us $22,-
791,000.
For the first eleven months of 1921 Canadian provinces, muni-
cipalities and railways have borrowed in the American market
$144,000,000, while the two first named have floated loans in Canada
aggregating $165,000,000 in the same period. The Dominion
Government has floated no public loan at home or abroad in the
past year. There has been a decrease in our current deposits in
Canada of $30,400,000 during the year. This is a natural outcome
of present business conditions. Our deposits abroad show little
change. A gratifying feature of the situation is that time deposits
in Canada have been well maintained, the total for all banks show-
ing a comparatively small reduction of $20,000,000 during the year.
Our own deposits in this class show a slight increase of $4,000,000
odd.
I am pleased to report that the improvement in the latter
department is owing largely to an increased clientele, and I should
like to take this opportunity of stating that we cordially welcome
small accounts at all our offices. The note circulation of the coun-
try has declined, in keeping with the contraction in trade. The
total bank note circulation of Canada to-day is $193,546,000 com-
pared with $249,165,000 a year ago. Our own circulation is less
by $10,743,000. In the United States, money is in more plentiful
BANK OF MONTREAL — ANNUAL ADDRESSES AND REPORTS 919
supply. The average rate for call money in New York for the year
under review has been 6-37%, or approximately 2% less than for
the previous twelve months.
In London, we have been able to employ profitably the sub-
stantial reserves carried at that centre, although our profits have
been somewhat diminished by increased taxes and lower money
rates. Exchange rates have prevented the issue of Canadian public
loans in London, in normal times a very important feature of our
London business. With an improvement in the value of the pound
sterling we should hope to be again the medium between borrower
and lender and secure British capital for Canada's development.
Other Dominion and Crown Colonies less affected by exchange
rates continue to appeal to the English investor, and their public
issues meet with a good response from the investing public. For
the ten months ending 31st October, India and Ceylon have publicly
borrowed in London £19,625,000, other British Possessions £47,-
029,000 and Foreign Countries £24,346,000. These figures do not
indicate that London has lost her position as the world's cheapest
international borrowing centre.
The buying of Canadian securities in London, so much in
evidence a year ago, has dwindled to small proportions, and there
appear to be but few securities left suitable for the Canadian market.
Our Waterloo Place Branch continues to be a great convenience,
not only to visitors from abroad but, owing ot its location in the
West End, to private depositors as well. The services of our Paris
Office have been availed of to an increasing extent by Canadians
and others visiting France and it became necessary to acquire per-
manent and larger quarters. The new office will be in Place Ven-
dome near the present premises, and we hope to make the transfer
in January next, when we shall have every requisite facility for the
conduct of our banking business.
The premium on New York funds is still with us with little
prospect of departure in the near future. The rate is 8^%;;to-day
as compared with 15% on the 5th December, 1920. The fact that
Canadians have become accustomed to the penalty of doing busi-
ness abroad with an inferior domestic dollar does not alter the fact
that Canada is at a very serious disadvantage indeed in its monetary
dealings with the United States of America. I shall not go into
the matter, as it has been dealt with in my previous reports, except
to say that the premium on New York funds will not disappear until
we buy many millions less of goods and materials abroad or increase
our exports.
The premium would have been higher had it not been that
Canada, as stated elsewhere, has borrowed in the United States this
year $144,000,000, which sum, so far as exchange is concerned, must
be added to our exports or deducted from our imports. Every
Canadian should understand, however, that this is merely allevia-
tion, not cure. Economically, it would be far better that we should
borrow within our own borders. By borrowing abroad we add
920 THE CANADIAN ANNUAL REVIEW
steadily to the already great sum of interest on our foreign obliga-
tions annually sent out of the country, the capital amount aggre-
gating nearly $3,500,000,000.
Canada still maintains its excellent credit position in the New
York market, and no difficulty has been experienced in floating such
loans as have been offered. To revert to our own affairs, I think
the shareholders have good reason to agree with the Directors in
considering the results of the year's business satisfactory.
As regards the outlook in Canada and the prospect as affect-
ing Canadian business generally, I have no desire to join the list of
oracles who predict the date when normal conditions will be re-
stored. For one thing, values are out of joint. Our main depen-
dence is on our natural resources, and at present the purchasing
power of the products thereof is at the lowest level reached for
several years past. On the other hand, we still have with us high
prices in other directions, while retail prices generally are con-
spicuously out of line.
The cause of this anomaly is still mainly the cost of labour.
Unemployment is a natural corrective, though painful and re-
gretted by everyone. Apart from this, I cannot see how we can
count upon improved conditions concurrently with trade revival
in the United States. Conditions are similar in many respects, as
everyone knows, but our liabilities and our mistakes are our very
own. Aside from the cost of the war, we must pay the penalty of
having mortgaged our future in the building of superfluous railways
and in other extravagances.
It is all very well to talk about our vast resources, but we as
a people have pledged these resources and wasted our substance to
an extent only now being realized. Evidence of this is, first, in
the great sum of nearly two hundred million dollars annually sent
abroad to meet the interest on our debts ; and, second, that our dollar
is at serious discount in the United States, with which country
we trade so heavily. The Canadian resources that remain intact
are the manhood of the Dominion and the industry and ambition
of our citizens. In these respects Canada is still rich, and, having
learned our lesson from that inexorable teacher, stern experience,
we shall emerge from our difficulties in time a wiser nation and then
proceed to the full development of a great inheritance on a sound
and sure basis, turning the experience of the past to the advantage
of the future.
Directors of the Bank and, subsequently, the President and
Vice-President, were elected as follows:
SIR VINCENT MEREDITH,BART., SIR CHARLES GORDON, G.B.E.,
President Vice-President
R. B. ANGUS, ESQ. LORD SHAUGHNESSY, K.C.V.O.
C. R. HOSMER, ESQ. H. R. DRUMMOND, ESQ.
R. FORBES ANGUS^ ESQ. WM. McMASTER, ESQ.
feT\£°LV,HERBER^ M°LSON, C.M.G..M.C. HAROLD KENNEDY, ESQ.
g- W. BEAUCLERK, ESQ. G. B. ERASER, Esp.
HIS HONOUR HENRY COCKSHUTT, ESQ. J. H. ASHDOWN, ESQ.
E. W. BEATTY, ESQ., K.C..L.L.D. SIR LOMER GOUIN, K.C.M.G.
GENERAL SIR ARTHUR CURRIE, G.C.M.G., K.C.B.
BANK OF MONTREAL — ANNUAL ADDRESSES AND REPORTS 921
GENERAL STATEMENT
OF
THE BANK OF MONTREAL
31st OF OCTOBER, 1921
ASSETS
Gold and Silver coin current $25,622 287. 14
Dominion Notes 62,627,391.50
Deposit in the Central Gold Reserve 11,200,000.00
Balances due by Banks and Banking Correspond-
ents elsewhere than in Canada $11,357,957.05
Call and Short (not exceeding thirty days) Loans
Loans in Canada, on Bonds, Debentures
and Stocks 1,820,951 .48
Call and Short (not exceeding thirty days) Loans
in Great Britain and United States 96,959,413.55
110,138,322.08
Dominion and Provincial Government Securities not exceeding
market value 26,584,002.21
Railway and other Bonds, Debentures and Stocks not exceeding
market value ; 3,010,402.11
Canadian Municipal Securities and British, Foreign and Colonial
Public Securities other than Canadian 21,207,206.59
Notes of other Banks 2,755,232.00
Cheques on other Banks . 27751452 88
$290,896,296.51
Current Loans and Discounts in Canada (less rebate of interest) 184,670,289. 10
Loans to Cities, Towns, Municipalities and School Districts 16,754,821 .22
Current Loans and Discounts elsewhere than in Canada (less
rebate of interest 15,129,202.46
Overdue debts, estimated loss provided for 581,482.02
217,135,794.80
Bank Premises at not more than cost (less amounts written off 5,500,000.00
Liabilities of Customers under Letters of Credit (as per Contra) 2,554,904.79
Deposit with the Minister for the purposes of the Circulation Fund 1,090,000.00
Other Assets not included in the foregoing 226.166.59
$517,403,162.69
LIABILITIES
Capital Stock $22,000,000.00
Rest $22,000,000.00
Balance of Profits carried forward 1,501,646.61
$23,501,646.61
Unclaimed Dividends 15,600.99
Quarterly Dividend, payable 1st Dec., 1921 660,000.00
Bonus of 2% payable 1st Dec., 1921 440,000.00
24,617,247.60
$46,617,247.60
Notes of the Bank in circulation $31,624,820.00
Balance due to Dominion Government 22,840,543.27
Deposits not bearing interest 88,618,100.57
Deposits bearing interest, including interest accrued to date of
statement 317,935,871.38
Deposits made by and Balances due to otherBanks in Canada 1,511,954.59
Balances due to Banks and Banking Correspondents elsewhere
than in Canada 2,217,754.34
Bills Payable 2,336,827 . 89
467,085,872.04
Acceptances under Letters of Credits 2,554,904 . 79
Liabilities not included in the foregoing 1,145,138.26
$517,403,162.69
VINCENT MEREDITH,
PRESIDENT.
FREDERICK WILLIAMS-TAYLOR,
GENERAL MANAGER
922 THE CANADIAN ANNUAL REVIEW
To the Shareholders of the Bank of Montreal:
We have checked the cash and verified the Securities of the Bank at the Chief Office on the
31st October, 1921, and also at another time as required by the Bank Act, and we have found them
to be in accord with the books of the Bank. We have also checked the cash and verified the
Securities at several of the principal Branches of the Bank at various times during the year. We
have obtained all information and explanations required, and all transactions that have come under
our notice have been, in our opinion within the powers of the Bank. We have compared the
above Balance Sheet with the books and Accounts at the Chief Office of the Bank, and with the
certified Returns received from its Branches, and we certify that in our opinion it exhibits a true
and correct view of the state of the Bank's affairs according to the best of our information, the
explanations given to us, and as shown by the books of the Bank .
J. MAXTONE GRAHAM. C.A. ) .
JAMES HUTCHISON, C.A. /Auditors.
Montreal, 18th November, 1921 . of the firm of Riddell, Stead, Graham & Hutchison
OFFICIALS OF THE BANK OF MONTREAL
SIR FREDERICK WILLIAMS-TAYLOR, General Manager
F. J. COCKBURN,
Assistant General Manager and Superintendent Quebec, Maritime, Newfoundland and Mexico Branches
G. C. CASSELS,
Assistant General Manager and Manager London Branches.
D. R. CLARKE,
Assistant General Manager and Superintendent Ontario Branches
W. A. BOG,
Assistant General Manager
E. P. WINSLOW W. H. HOGG,
Superintendent Western Branches Superintendent British Columbia Branches
A GREAT CANADIAN INSTITUTION
PRESIDENTIAL ADDRESS OF E. W. BEATTY, K.C., LL.D.
AND
REPORTS OF THE COMPANY
THE CANADIAN PACIFIC RAILWAY*
The 41st Annual Report, which is now submitted
Mr. Beatty's for your consideration and approval, indicates in a
4th Annual vivid way the effect on your Company's operations of
as President the acute depression through which the business of the
of the * country passed during 1921, and it is a matter of
Canadian gratification that, notwithstanding the decrease in
Pacific gross earnings of $23,619,000, the economies which
Railway. were effected resulted in somewhat increased net
earnings and, of course, a slightly larger surplus after
paying fixed charges and usual dividends on the Preference and
Common Stocks. The results reflect great credit upon the ability
of the officers and men of the Company and are also a tribute to
the physical condition of the property which permitted reduction of
expenses without in any degree affecting the efficiency with which
traffic was moved. During the months of October and November
especially the heavy grain traffic was transported most expeditiously,
with distinct advantage to the Company's revenues.
As indicated in the report the sales of agricultural lands were
relatively small, due to the general depression and the absence of
the immigration of agriculturists during the year. In my opinion
Canada cannot afford to be without a definite and forward immigra-
tion policy much longer. While it is urged that the depression both
in agriculture and in general industry with consequent unemploy-
ment during the past winter is a reason why active immigration
measures should not be taken, it must not be forgotten that there
are types of immigrants that can be readily obtained and brought
to Canada without the possibility of adding to the burdens of the
country. The immigration of young people of British stock can be
accomplished without affecting in any material degree the existing
situation respecting unemployment. The immigration of domestic
servants in substantial numbers may reasonably be encouraged, and
the immigration of agriculturists from Northern Europe, Great
Britain and the United States who can only be secured in limited
numbers should be actively prosecuted.
In addition, the Government would, I think, be well warranted
in framing a policy designed to permit more general immigration of
carefully selected types from countries, the people of which have
~ *Note —Annual Meeting May 3rd. 1922. For a history of the C.P.R. see Supplement to The
Canadian 'Annual Review for 1911; for Lord Shaughnessy's last Presidential address see 1918
Supplement; for Mr. Beatty's first 3 Presidential Addresses see 1919 and 1920 volumes.
[923]
924 THE CANADIAN ANNUAL REVIEW
heretofore come to this country and succeeded under Canadian
conditions. It must not be forgotten that Canada's opportunities
deserve wide-spread recognition, and even if the setting up of ade-
quate machinery is now begun it will not be until 1 923 that the re-
sults of the Government's activities will be felt. Unless we feel
that the conditions in this country will not be improved for some
considerable time to come, it would appear that the preliminary
steps to obtain immigrants in substantial numbers should be taken
without further delay. The Canadian Pacific for many years has
been the most active colonization agency in Canada. Settlers to
the number of 54,000 have been placed upon its lands alone, and the
cost of the Company's activities in land selling, irrigation and colon-
ization since its incorporation has been extremely large, amounting
in the aggregate to approximately $68,000,00 an amount in excess
of the total expenditure of the Dominion Government for immigra-
tion during that period.
As forecast in the address at the last annual meeting, reduc-
tions took place during the year both in rates of wages and in
freight and passenger rates. The wage reductions which became
effective July 16th last were equivalent to 9-03% on then existing
payrolls of the Company. The demand for further freight rate
reductions is still persistent throughout Canada and to the existing
scale of rates is attributed much of the present slackness in business.
It is in my opinion an entirely erroneous impression that the existing
freight rates are the cause rather than the result of the present econ-
omic conditions, the most important of which from a transportation
standpoint is the present scale of wages and working conditions
which the railways were compelled by Government authority to
accept during the War. It is the view of your Directors and it has
been their view for some time that the scaling downwards of freight
rates should be begun with reductions on basic commodities,
especially in those industries which had felt the general depression
most severely.
Notwithstanding the willingness of the companies to make
sacrifices in their revenues in the hope that a lower scale of rates
on basic commodities would give an impetus to business activity,
they have been precluded from agreeing on a definite policy because
of the approaching expiration on 7th July next of the provisions
of the Railway Act allowing the Railway Commission to make rates
irrespective of agreements, statutory or other. In 1897 an agree-
ment was made between this Company and the Government and
confirmed by Parliament whereby in consideration of the receipt
by the Company of a subsidy of $3,300,000 in aid of the construction
of a railway through the Crow's Nest Pass to Southern British
Columbia reductions in rates on certain named commodities
shipped from Eastern Canada to points in the West and on grain to
Fort William were exacted with the obvious intent of assisting the
colonization of the Prairie Provinces.
The so-called Crow's Nest rates on the Commodities specified,
are from 19% to 49% lower than the rates at present being charged.
C. P. R. ANNUAL REPORT AND MR. BEATTY'S ADDRESS 925
The intention of Parliament at that time undoubtedly was to create
special rates which the Company would be entitled to collect and
which would be legal though not bearing a fair relation to other
rates At that time the Canadian Pacific operated about 7,300
miles of railway, but in a desire to give equality of rates to territories
contiguous to those mentioned in the statute though not supplied
with railway facilities at the time the statute was passed, the Corn-
extended the application of these Crow's Nest rates to the lines
subsequently constructed or acquired so that in 1918 the rates had
been applied to 13,772 miles of railway. During the period sub-
sequent to 1897 many thousands of additional miles of railway were
constructed by other companies now included in the National
Railway System. The rates effective on this Company's lines were
naturally put into effect on the lines of these railways so that it is
safe to say that the so-called Crow's Nest rates were in practice
applied to five times the mileage in operation at the time the agree-
ment was made.
The Crow's Nest scale of rates if applied literally would bring
about inequality of treatment between different parts of Western
Canada, which must, of necessity, favour some districts against
others which now enjoy relatively equal rates. The Government
desire to have the facts considered by a special committee of Par-
liament with particular reference to the operating costs of the rail-
ways and to the result of the application of the Crow's Nest scale
upon the revenues of the National Railways and of other railways.
The situation was twice reviewed by the late Government, once in
1918 when the rates were suspended by Order-in-council under the
War Measures Act because of the inability of the companies (in
view of the heavy costs of^ operation) otherwise to carry on success-
fully and to perform the transportation service so peculiarly essential
at that time, and again in 1919 when power to deal with the rates
irrespective of the provisions of special agreements was conferred
upon the Railway Commission.
In both instances the view of the Government apparently was
that Parliament, in establishing the Crow's Nest rates, had not in
contemplation the extraordinary and abnormal conditions under
which the operations of the railways have been carried on in recent
years or the inequalities and discriminations which might be created
under the scale of rates then imposed. While considerable
progress has been made in reducing expenses, there still exists a
serious increase above pre-war costs. The wage scales of 1921 are
higher by percentages ranging from 82% to 368% than those exist-
ing in 1898 and 1899, and the cost of principal commodities, in-
cluding fuel and rails is also substantially higher, the increase in the
case of rails being 92-32% and in fuel 177-5%. The operating
ratio of the Company in 1897 was 57 • 16%, while for the year 1921
it was 82-28%. The situation is one which should have frank
recognition. The matter is in the hands of Parliament which alone
can deal with it because of statutory restrictions.
926 THE CANADIAN ANNUAL REVIEW
I regard the stability of railway rates in Canada (even if re-
adjustments downwards are bound to continue until normal oper-
ating conditions are reached) as being of the greatest possible im-
portance to all Canadian railways. For the past four years the
extraordinary conditions which prevailed have compelled drastic
economies and the conserving of the resources of the companies
wherever possible. They have prevented the increasing of facilities
and improvements in maintenance and the construction of new
lines because no company would be justified in spending freely for
these purposes in the absence of adequate revenues. The large
railway systems of Canada, are, of course, the chief purchasers of
material and supplies, and to the extent to which their purchases
for any purpose, including new construction, are prevented by the
uncertainty of financial return upon the money invested, a return
to prosperity is retarded.
I had been hopeful that the present year would see a resump-
tion of at least normal activity in maintenance and construction
works, the necessity for which always prevails on a system the size
of the Canadian Pacific. Apparently, however, we have not reached
the period at which we can say that large expenditures are war-
ranted, especially in view of the freight rate situation. The steps
preliminary to the re-adjustment of wage scales and working con-
ditions are proceeding both in the United States and in Canada.
The procedure being followed is that required by the agreements
with the labour unions and by the laws of the United States and
Canada. An early decision is hoped for in respect of some of the
matters in dispute, but the proceedings are, of necessity protracted
and decisions are not therefore reached speedily.
Gross earnings on all Canadian roads still show substantial
decreases under those of the corresponding period of 1921. Crop
conditions, however, so far as they can be judged at this date, are
very favourable and there is a returning spirit of optimism and
activity which should grow in volume if the agricultural prospects
are realized. The Company's taxation is not unnaturally increasing
from year to year, approximately $10,000,000 having accrued in
Federal taxes during the last five and a half years. As indicated in
the Annual Report, the finances of the Company are in splendid
condition and the credit of the Company has been well maintained
and is extremely high. It is, I think, of national importance that
it should be so maintained.
While there are some serious and difficult problems yet to be
solved, the general sentiment of the country shows a distinct im-
provement over that prevailing at the end of last year and the be-
ginning of 1922. I am very hopeful that the importance of the
transportation agencies of Canada being permitted to undertake
their full share in the country's advancement will receive due recog-
nition, and if it does I am convinced that the return to normal con-
ditions will be greatly accelerated. Your Company will, as always,
endeavour to perform its part with the purpose of advancing the
expansion of the country agriculturally and industrially. Few
C. P. R. ANNUAL REPORT AND MR. BEATTY'S ADDRESS 927
institutions are so linked up with the prosperity of Canada as is the
Canadian Pacific and its ability to maintain a high credit has in a
large measure contributed to the support received by other Can-
adian enterprises. Its progression should be step by step with that
of the country itself.
Since the publication of the Annual Report the Board has
lost one of its members through the death of Sir John Eaton, who
joined the Directorate on the 8th day of December, 1919. Sir
John Baton was in the prime of life, a man of tremendous personal
influence and of extraordinarily generous qualities. His loss will
be very much felt throughout Canada and particularly in the City
of Toronto. His counsel and assistance were greatly appreciated
by the Board and his death is deeply deplored. The vacancy
created by his death has not yet been filled. I cannot speak too
highly of the morale and efficiency of the officers and men of the
Company. A more loyal group of men does not, I think, exist in
any corporation in the world.
41st ANNUAL REPORT OF THE COMPANY
The accounts of the Company for the year ended December
31, 1 92 1 , shows the following results : —
Gross Earnings $193,021,854.40
Working Expenses (including all taxes) 158,820,114.09
Net Earnings $34,201,740.31
Deduct Fixed Charges 11,519,071.97
Surplus $22,682,668.34
Contribution to Pension Fund 500,000.00
From this there has been charged a half-yearly dividend on Pre-
ference Stock of 2%, paid October 1st, 1921 $1,613,638.42
And three quarterly dividends on Ordinary Stock of 1 %% each,
paid Tune 30th, 1921, October 1st, 1921, and December 31st,
1921 13,650,000.00
From this there has been declared a second half-yearly dividend
on Preference Stock of 2% payable April 1st, 1922 $1,613,638.42
And a fourth quarterly dividend on Ordinary Stock of l%%,
payable April 1st, 1922 4,550,000.00
$22 182.668.34
15,263,638.42
$6,919,029.92
6,163,638.42
Leaving net surplus for the year $755,391 .50
In addition to the above dividends on Ordinary Stock, three per cent, was paid from Special
Income.
2. The working expenses for the year, including all taxes,
amounted to 82-28 per cent, of the gross earnings, and the net
earnings to 17-72 per cent., as compared with 84-70 per cent, and
15-30 per cent, respectively in 1920.
3. The gross earnings of your transportation system during
the fiscal year under review were less than those of 1920 by $23,-
619,494, but the net earnings increased by $1,048,695. The large
decrease in the gross earnings is attributed to the general business
depression which set in at the end of 1920 and continued practically
without interruption during the fiscal year under review, to the
decrease in passenger fares in January and July and in freight rates
928 THE CANADIAN ANNUAL REVIEW
in December, and to a partial crop failure in some portions of Wes-
tern Canada in areas served by your lines of railway. Of the ex-
penses of the year, 53-84 per cent, was disbursed on account of
labour, 25-92 per cent, for material and miscellaneous supplies,
15-51 per cent, for fuel and other locomotive supplies and 3-49
per cent, for taxes. The balance, 1-24 per cent., was necessary to
meet Loss and Damage claims. By the exercise of the strictest
economy and the deferring of work which could be postponed,
especially during the early part of the year when traffic was par-
ticularly light, and by the savings effected through the reduction
in wages secured in September, your Officers were able to reduce
expenses to an amount in excess of the decrease in gross revenues
due to the conditions already mentioned. In the circumstances,
the year's operations must be regarded as satisfactory, particularly
having regard to the decrease in passenger and freight rates men-
tioned above. The operating ratio compares most favourably
with that of other Systems.
4. The sales of agricultural land in the year were 153,304
acres for $2,872,999, being an average of $18.74 per acre. Included
in this area were 6,686 acres of irrigated land, which brought $53.15
per acre, so that the average price for the balance was $17.17 per
acre. The sales of land in Western Canada were naturally very
seriously affected by the ecnomic conditions which prevailed during
the year, resulting in a very large decrease in the acreage acquired
by purchasers either from your Company or other land-owners.
Your Directors are satisfied that with the adoption of reasonable
immigration laws designed to encourage the entry into Canada
of immigrants of the right type, you may look forward to a distinct
improvement in the volume of land sales during the next few years.
5. During the year your Directors disposed in London of
£4,800,000 (of which £4,504,428 was delivered prior to December
31), and in New York of $25,000,000 of Four per cent. Consolidated
Debenture Stock, the issuance and sale of which you had previously
authorized, at prices which under the prevailing market conditions
were extremely favourable, reflecting the high credit which the
Company enjoys. The sale of this Stock in New York was effected
in an eminently satisfactory manner, and though the Security was
of a character practically unknown among American investors it
received widespread and ready distribution. In order to meet the
requirements of the United States market the certificates of the
Debenture Stock there issued were made in bearer form with interest
coupons attached, under conditions which permit of the conversion
into registered Stock at the option of the holder, and you will be
asked to give your sanction to By-law No. 47, Sub-section D, en-
acted by the Directors providing for the issue of certificates in this
form.
The market for the Company's Consolidated Debenture
Stock being so favourable both in the United States and in England,
it was not considered desirable or necessary to create and issue
bonds, debentures or other securities secured by pledge of Con-
C. P. R. ANNUAL REPORT AND MR. BEATTY'S ADDRESS 929
solidated Debenture Stock, which you authorized at the special
general meeting held on the fourth day of May of last year.
6. During the year your Directors consented to the issue
of $2,671,000 Five per cent. Consolidated Bonds of the Minnea-
polis, St. Paul and Sault Ste. Marie Railway Company for the pur-
pose of making payment for the property of the Wisconsin and
Northern Railway Company, the purchase of which had been ar-
ranged by the Board of the former Company. They also consented
to the issue and sale of $10,000,000 of the Minneapolis, St. Paul and
Sault Ste. Marie 10-year Six and a half per cent. Notes to be
secured collaterally by a portion of the $15,000,000 First Refunding
Mortgage Six per cent. Bonds which that Company had power to
issue. Both issues were made after the approval of the Interstate
Commerce Commission was obtained.
In common with other American railroads the revenues of the
Minneapolis, St. Paul and Sault Ste. Marie Railway Company
and its subsidiaries fell off very materially during the past year and
its operations were in particular seriously affected by the United
States tariff against Canadian wheat and the practical shutting
down the iron ore mines in Michigan and Minnesota. Their
revenues were also adversely affected through the depression in the
lumber and livestock business. In these circumstances the Direc-
tors of that Company determined upon the reduction of the Pre-
ferred and Common Stock dividends to the basis of four per cent,
per annum, and in their decision your Directors have concurred.
A substantial improvement in traffic conditions on the railways of
your United States subsidiaries is confidently looked forward to.
7. The four steamers under construction for the Atlantic and
Pacific services will all be in commission for the present season.
The S.S. Montcalm has already been delivered, and the Montr ose
and Montdare and Empress of Canada will be delivered in April and
May. The S.S. Princess Louise, constructed for the Pacific Coast
Service, has been put into service and is in every respect satis-
factory for the trade in which she is engaged. During the year the
Company purchased the steamships Kaiserin Augusts Victoria,
Prinz Friedrich Whilhelm and Tirpitz for extremely low prices.
The Kaiserin Auguste Victoria has been renamed the Empress of
Scotland, the Prinz Friedrich Wilhelm the Empress of India and the
Tripitz the Empress of Australia. The two first named will be
added to the Atlantic fleet and the Empress of Australia will be
added to the Pacific fleet. The cost of the ships under construction
will exceed the original estimates by a considerable sum, due to
protracted labour troubles, increased cost of materials and difficul-
ties in the ship yards during the construction period. With the
addition of the new ships constructed and purchased the total ton-
nage of your fleet will be 438,604 tons — the largest in the history of
the Company, and the fleet, in numbers and in the character of
ships in service, is in the opinion of your Directors amply able to
maintain the high reputation of the Company on Atlantic, Pacific
and coastal routes.
930 THE CANADIAN ANNUAL REVIEW
8. In anticipation of your confirmation your Directors author-
ized capital appropriations, in addition to those approved at the
last annual meeting, aggregating for the year 1921, $1,743,444, and
ask your approval to expenditures on capital account during the
present year, as and when the conditions warrant such expenditures,
of $10,622,137. Of this amount the principal items are: —
Replacement and enlargement of structures in permanent form .......................................... $1,021,700
Additional stations, round houses, freight sheds and shops, and extensions to existing
buildings .................................................................................................................................... 1,008,200
Tie plates, rail anchors, ballasting, ditching and miscellaneous roadway betterments ........ ?43,200
Replacement of rail in main and branch line tracks with heavier section ........................... 1,500,700
Additional terminal and side track accommodation.
New Pier "BC" at Vancouver
Extension work on Chateau Frontenac Hotel, Quebec
Additional lining, Connaught Tunnel
Mechanical Department, machinery at various points
Improvements to plant and machinery, Angus Shops
Improvements in connection with Telegraph service
Line Diversion at Port McNicoll.
...... 1,454,500
550,000
439,000
218,400
291,400
355,600
LaSalle Loop Line, South Bank Branch, Montreal ................................................................ 300,000
Line Diversion at Kingston Jet ................................................................................................. 100,000
The balance of the amount is required for miscellaneous works
to improve facilities and effect economies over the whole system.
Your Directors feel that expenditures, for the first part of the year
at all events, should be made with exceptional care in view of the
existing traffic conditions and have therefore only authorized ex-
penditures to the amount of $3,958,770, more than $3,000,000 of
which is for the continuance of the work on the Chateau Fronenac
and the new pier at Vancouver which has already been commenced.
9. At the request of the Government of Alberta your Direc-
tors have entered into an agreement for the construction and opera-
tion of an extension of the Central Canada Railway for twenty
five miles westerly from Peace River Landing to Berwyn. The
terms of the agreement for operation are similar to those of the
existing agreement between the Government, the stockholders of
the Edmonton, Dun vegan and British Columbia and the Central
Canada Railway Companies and the Union Bank of Canada, under
which the properties of the two companies are operated by your
Company. The cost of the construction of the extension is, of
course, to be borne by the Province of Alberta.
10. As intimated in the last annual report your Directors en-
tered into an agreement with the Province of Quebec for the con-
struction by your subsidiary, the Interprovincial and James Bay
Railway Company, of a railway extending from Kipawa to the Des
Quinze River, having a total mileage of approximately seventy-
seven miles. The lease of the railways of that Company to your
Company on the usual terms will be submitted for your approval.
1. Your Directors have authorized the preparation and erec-
tion^ of a bronze memorial statue to those in the Company's service
who^lost their lives in the Great War. The statue will be erected in
the Windsor Station, Montreal, and replicas placed at Winnipeg
and Vancouver. In addition, bronze plaques have been prepared
for placing in the principal stations and offices of the Company from
London to Hong Kong. Your Directors feel that the heroism, self
C. P. R. ANNUAL REPORT AND MR. BEATTY'S ADDRESS 931
sacrifice and high sense of duty which the Company's employees
showed should be perpetuated in a prominent way through the out
System.
12. The death occurred on the 29th of November last at his
home, Brocket Hall, Hatfield, Hertfordshire, of the Right Honour-
able Lord Mount Stephen, the first President of the Company, in
the ninety-third year of his age. Lord Mount Stephen was Presi-
dent from the incorporation of the Company in the year 1881 until
August, 18888, and thereafter remained a director until May, 1893,
when, finding himself unable to discharge the duties of a director to
his own satisfaction owing to his absence from Canada, he retired
from the Board. Lord Mount Stephen had been the master spirit
of the enterprise from its beginning, and its safe conduct through its
earlier perils to the strong and proud position it occupied when he
retired from the Presidency was almost entirely due to his great
ability, courage, tenacity and inspiring integrity. Your Directors
recorded their appreciation of his services by a resolution upon the
occasion of his retirement and as a memorial of the lasting benefit
to the Company of his invaluable services have also recorded upon
their Minutes a renewed expression of the Board's appreciation of
that service, together with an expression of their profound regret
at his removal by death.
13. The undermentioned Directors will retire from office at
the approaching Annual Meeting. They are eligible for re-election :
Mr. J. K. L. Ross, Right Hon. Lord Shaughnessy, K.C.V.O.,
Sir Thomas Skinner, BART.
For the Directors,
E. W. BEATTY,
Montreal, March 13th, 1922. President.
932
THE CANADIAN ANNUAL REVIEW
GENERAL BALANCE SHEET DEC. 31st, 1921
THE CANADIAN PACIFIC RAILWAY.
ASSETS
PROPERTY INVESTMENT
Railway, Rolling Stock Equipment and Lake and River Steamers $597,206,336.77
Ocean and Coastal Steamships, Exhibit "A" 56,470,503.16
Acquired Securities (Cost) :
Exhibit "B" 128,109,814.18
Advances to Controlled Properties and Insurance Premiums 9,762,633.55
INVESTMENTS AND AVAILABLE RESOURCES:
(Including amount held in trust for 6% Note Certificates,
$60,155,819.31)
Deferred Payments on Lands and Townsites $69,296,736.90
Imperial and Dominion Government Securities 27,310,674.54
Provincial and Municipal Securities 2,016,721 .29
Debenture Stock in Treasury 7,000,000.00
Miscellaneous Investments, Exhibit "C," Cost 38,356,459.66
Assets in Lands and Properties, Exhibit "D" 91,962,630. 15
Cash 5,322,968.14
241,266,190.68
WORKING ASSETS:
Material and Supplies on Hand $32,997,116.59
Agents' and Conductors' Balances 3,440,114. 17
Net Traffic Balances 860,757.79
Imperial, Dominion and United States Governments,
Accounts due for Transportation, etc 1,681,377.24
Miscellaneous Accounts Receivable 7,611,456.73
Cash in Hand 45,318,948.06
91,909,770.58
Total Assets $1,124,725,248.92
LIABILITIES
CAPITAL STOCK:
Ordinary Stock $260,000,000.00
Four per cent. Preference Stock 80,681,921 . 12
$340,681,921.12
Four Per Cent. Consolidated Debenture Stock 238,206,431 .68
MORTGAGE BONDS:
Algoma Branch 1st Mortgage 5 per cent 3,650,000.00
Note Certificates 6 per cent 52,000,000.00.
CURRENT :
Audited Vouchers 9,406,442.66
Pay Rolls 3,419,137.53
Miscellaneous Accounts Payable 12,589,518.89
25,415,099.08
ACCURED:
Rentals of Leased Lines and Coupons on Mortgage Bonds 690,882 .43
Equipment Obligations 16,610,000.00
RESERVES AND APPROPRIATIONS:
Equipment Replacement 10,780.419.91
Steamship Replacement 19,185,401 .96
Reserve Fund for Contingencies and for Contingent Taxes.. 46,638,047 .51
76,603,869.38
Premium on Ordinary Capital Stock Sold 45,000,000.00
Net Proceeds Lands and Townsites 93,798,267.39
Surplus Revenue from Operation 128,481,119.8.5
Special Reserve to meet Taxes imposed by Dominion Government 2,597,888.76
Surplus in other Assets 100,989,769.23
Total Liabilities $1,124,725,248.92
J. LESLIE, Comptroller.
Auditors' Certificate.
We have examined the Books and Records of the Canadian Pacific Railway Co. for the year
ending December 31st, 1921, and having compared the annexed Balance Sheet and Income Account
therewith, we certify that, in our opinion, the Balance Sheet is properly drawn up so as to show the
true financial position of the Company at that date, and that the relative Income Account for the
year is correct.
PRICE, WATERHOUSE & CO.
Montreal, March 13th, 1922. Chartered Accountants (England).
53rd
Annual
Meeting
of the
Bank.
CANADA AND THE WEST INDIES
• ANNUAL ADDRESSES AND REPORTS
OF
THE ROYAL BANK OF CANADA*
The 53rd annual general meeting of the Royal
Bank of Canada was held at Montreal on Tan 12
1922 with Sir Herbert Holt in the chair. Others
present were as follows: B. L. Pease, A. J. Brown, K c
Hon. W. H. Thorne, C. E. -Neill, C. C. Blackadar'
™ 1 A T % 5' Du^an' A- E- Dyment, Hugh Paton, W. B.'
Blackadar, J. T. Ross, George Caverhill, Robert Adair, Allan Ross,
£• Maf D. Paterson, C. R. Hosmer, M. W. Wilson, W. A. Black,
N Hillary, D. C. Rea, Andrew Fleming, C. C. Pineo, A. B. Brock
Alex. Paterson, A. Haig Sims, Thomas Clarke, Victor Morin, S. L
Cork, R. L. Ritchie, B. B. Stevenson, R. S. White, F. T. Walker
C. V. Lindsay, S. G. Dobson, G. W. MacKimmie, H. K. Wright and
S. D. Bpak. The General Manager, Mr. C. B. Neill read the
Director s Report for the year ending Nov. 30, 1921 :
PROFIT AND LOSS ACCOUNT
Balance of Profit and Loss Account, November
_ 30, 1920 $ 546,928.20
Profits for the year, after deducting Charges of
Management and all other Expenses, Accrued
Interest on Deposits, full Provision for all
Bad and Doubtful Debts and Rebate of
Interest on Unmatured Bills 4,037,836.49
Appropriated as follows:
Dividends Nos. 134, 135, 136 and 137 at 12% per
annum $2,436,488.67
Bonus of 2 per cent, to Shareholders 407,082.00
Transferred to Officers' Pension Fund 100,000.00
Written off Bank Premises Account 400,000.00
War Tax on Bank Note Circulation 203,154.04
Transferred to Reserve Fund 132,995 .00
Balance of Profit and Loss carried forward 905,044.98
$4,584,764.69
$4,584,764.69
The Balance Sheet of the Bank for the year ending
November 30, last, submitted to you today, shows a
reduction in figures indicative of the deflation which
has taken place in Canada and other countries where
we have branches. In common with other banks,
especially those conducting international business,
deposits have decreased, and on account of lessened
activity in trade and commerce of all descriptions, our circulation
is considerably less than it was a year ago. There has also been a
*NOTE — For History of the Bank see Supplement to The Canadian Annual Review for 1910;
Succeeding Reports and Addresses are given in the 1911-20 volumes.
[933J
Remarks
by C. E.
Neill,
General
Manager
of the
Bank.
934 THE CANADIAN ANNUAL REVIEW
substantial reduction in current loans, due to the drop in the price
of commodities and the relative smaller volume of business. Re-
payment of obligations by the Imperial Government has resulted in
a reduction of over $12,000,000 in our holdings of securities under
the heading "Canadian Municipal and British Foreign and Colonial
Public Securities other than Canadian." This decrease, however,
has been offset by an increase of approximately the same amount in
our holdings of securities issued by the Federal and Provincial
Governments of Canada.
Your attention is drawn to the strong liquid position which has
been maintained, especially in cash. Liquid assets are 48-61 per
cent, of liabilities to the public, and actual cash on hand and amounts
on deposit in banks is 29 • 69 per cent, of our total liabilities. The
final payments on account of the last issue of capital stock have
been made during the year, and our capital now stands at $20,-
400,000.00. An addition of $132,995.00 has been made to the
Reserve Fund out of profits, and the reserve now equals the capital.
Notwithstanding the lessened activity in business, earnings, have
been well maintained, net profits being $4,037,836.49, equal to
19-88 per cent, on the capital of the Bank. The usual dividends and
an additional bonus of two per cent, have been paid to the share-
holders, and $358, 1 16.78 has been added to Profit and Loss Account,
which now stands at $905,044,98. I wish particularly to draw your
attention to the fact that full provision has been made for all bad
debts, and that in addition, adequate amounts have been set aside
to provide for any accounts which may be considered in the doubtful
class.
In view of the discussions which have recently taken place
regarding the obligation of auditors of banks appointed under the
provisions of the Bank Act, it is proper that you should be informed
that the auditors appointed by the shareholders of this Bank not
only certify to the correctness of the Balance Sheet, but they also
approve of the value of the bank's assets as stated therein. The
representatives of the auditors, who conduct their investigations of
the banks business throughout the entire year, have access to the
statements, correspondence and inspection reports relative to all
loans granted, and their certification of our Balance Sheet is made
only after a full examination of all credits granted to customers.
In cases where there is any doubt as to the value of a debtor's
account, the amount set aside by the Bank to take care of any pos-
sible loss is approved by the auditors as being sufficient. Every
facility is afforded them to examine each and every account in the
and they are encouraged to criticize and make the most detailed
investigations of every debt due the Bank, with the relative security.
As an indication of how closely the President, Managing Direc-
tor and Directors of this bank at Head Office, control the affairs of
the Bank, I may tell you that every credit granted of $25,000 and
over is approved by them, and there are no loans at any office of
the Bank today in excess of $25,000 which have not been approved
by the Directors at Head Office. Moreover, committees of resident
THE ROYAL BANK OF CANADA— ADDRESSES AND REPORTS 935
Directors of the Bank at Toronto, Winnipeg, Halifax, Quebec and
bt. John supervise and recommend all loans in their respective
districts, and in addition, are informed of all credits authorized in
other districts. I desire to commend the loyal and efficient service
rendered by all members of our staff during the somewhat trying
times of the past year.
1 first desire to emphasize the General Manager's
Sir Herb rt statement that a11 bad and doubtful debts have been
S. Holt, fullv Provided for. Usually the profits of the year
President are ample to provide for all bad and doubtful debts.
of the Should they not be sufficient, we have a contingent
Bank. fund, independent of the surplus fund, accumulated
during prosperous years, to fall back upon. I have
further to say that the Managing Director, the General Manager
and Executive Officers of the bank are officials of long experience
and proved ability, and that the affairs of the bank receive the
unremitting attention of myself and your Directors. I have no
hesitation in stating, that in my opinion, the organization and
system of supervision in this bank are unexcelled.
The year 1921 will long be remembered as a period of drastic
deflation and liquidation throughout the whole world, the after-
math of the war. This deflation was under way when we last met.
While it is not yet ended, each month brings us a nearer approach
to normal. The heavy decline in the price of commodities, and
check in public buying, found many of our manufacturers and mer-
chants in the possession of large unsaleable stocks, purchased at
boom prices. Obviously the transition to more normal values was
attended by much loss. The fact, however, that there were one
thousand fewer failures in Canada in 1921 than in 1915 may be
attributed to the abnormal profits accumulated during the war.
The fall in prices necessarily greatly curtailed the volume of
credit, and is largely responsible for the contraction in the aggre-
gate of the balance sheet totals of the banks. There has been a
heavy decline in the price of wheat, Canada's chief staple and main-
stay. The cash return to farmers for the last crop will be much less
than that of the preceding year, although the crop itself was a larger
one. As a result, our Western farmers have fared badly, and have
been unable to liquidate their obligations satisfactorily. Their
reduced purchasing power must have its effect on general business.
The remedy lies in a drastic scaling down of the present costs of
production and distribution. In these costs, wages of labor play a
great part. The price of labor is still higher in Canada than it is in
the United States.
Economy in management and operation is one of the great
needs of the present time. If prices of commodities are not to rise
to any extent, but are, as many think, to experience a slow decline
over a period of years, profits can only be maintained by increased
economy and efficiency in management. These remarks on econ-
omy have special force in their application to our Governments,
936 THE CANADIAN ANNUAL REVIEW
Federal, Provincial and Municipal. Many Governments and
Municipalities are tempted by the facility in disposing of their
securities during a cheap money period, such as they are entering
upon in the United States, to engage in undertakings which are
justified, neither by their population nor their financial position.
Thus, there is a heavy drain on the country for tax payments, a
great part of which are remitted abroad in the shape of interest on
foreign borrowings.
Our foreign trade for the twelve months ending November 30th
shows a large decrease in total values, due in great part to falling
prices. While we have received a smaller return from our exports,
we have paid less for our imports, and the measure of progress is a
trade balance in our favour of $55,000,000. We are advancing in
the right direction, but a greater effort is imperative. We must
bring our favourable balance to a point equal to the interest on our
foreign indebtedness. Until we accomplish this, our borrowings
abroad will continue. By the development of our coal areas, by
improved methods of industrial production, above all by a wider
utilization of our water powers, must we labor to restrict our im-
ports. For the expansion of our exports, the speedy settlement of
our farm lands is the great need, and immigration should be stimu-
lated. Yet, we should take warning by the experience of our neigh-
bors and admit only those who are desirable. Let us follow the
motto of Australia. "You are welcome, if you are the man we
want."
Until recently the world outlook was one of gloom and dis-
couragement, but the Conference at Washington has given rise to a
growing hope. Not only has it struck at the root of past trouble
and future danger by the limitation of armaments, but it has shown
how speedily and satisfactorily international problems can be
settled where there is desire and good will. With the disarmament
question and the Far Eastern questions successfully ended, it is to
be hoped than an international economic conference will follow.
The great bar to an immediate improvement in the general situation
is the financial chaos in Europe. Heavy war debts, budget deficits,
reckless issues of paper currency, disorganized exchanges, and ser-
iously impaired trade relations between nations. There can be no
return to prosperous times until the credit of distressed nations is
restored and exchange is in some way stabilized. The United
States is Europe's chief creditor, and as the holder of the major
portion of the world's gold, holds the key to the situation. That
our vigorous neighbor will follow the centuries old policy of China,
and live within herself, as has been suggested, is unthinkable. We
feel sure that she is more likely to follow the course adopted by
Great Britain, when she was the great creditor nation, and send her
money to every part of the world, where it can be safely and profit-
ably employed.
Canada, after accepting every obligation arising out of the
conflict, is stronger materially than before the war. We have our
debt and our railway and shipping problems, all of which will tax
Address
by E. L.
Pease,
Vice-Presi-
dent and
Managing
Director.
THE ROYAL BANK OF CANADA — ADDRESSES AND REPORTS 937
the wisdom of our statesmen, but on the other side of the scale we
must place the growth of towns and cities, industrial expansion, the
increase in savings, and the fact that most of our bonds are held in
the Dominion. Compared with conditions in Europe, we are for-
tunate indeed. In conclusion, I wish to say that the scope and
character of the existing depression in world trade forbid us to hope
for an early or easy return to prosperity, yet I do not think we in
Canada need feel any great apprehension as to the future. The
unprecedented decline in prices, which was the worst feature of the
last year and a half, can hardly be repeated. I thrust that the
period immediately before us will be one of salutary economy, both
in public and private life, the best preparation for renewed prosper-
ity.
The year just ended has proved a very trying one
for the commercial community and for the banks.
Never before have we been confronted at home and
abroad with so many difficult problems and such
adverse conditions. The rapid and severe recession
in the prices of all commodities, and the lack of pur-
chasing power, involved heavy losses in inventories,
and a great shrinkage of domestic and international trade. The
price recession has caused a decline in the productivity of all manu-
facturing industries, and a consequent fall in profits, so much so,
that taxation has become a serious burden, accentuating our need
for a larger population among whom it could be shared.
In this period of exceptional stress the banks played a most
helpful part. How important, may be judged from the fact that
business demoralization, which occurred in every other country,
was averted in Canada. This may be regarded as one of the great-
est achievements of the Canadian banks. In circumstances so un-
favorable, I am sure we have fulfilled the highest expectations of our
shareholders in showing profits nearly equal to those of the previous
year ; by maintaining our dividend and bonus, and by meeting you
with strength unimpaired. In the case of farmers, the readjustment
of values is complete. They have been compelled to accept a lower
net return for their products than before the war. The reduction
in manufactured goods has been less drastic. General wholesale
prices, although 36% below the high point reached in 1920, are
still 68% above 1914 levels. In the end, production costs and sell-
ing prices must come down to the buying power of the farmers.
The sooner this is effected, the sooner business will revive.
The movement of the Western wheat crop has been rapid.
Between September 1st and December 30th, 175,000,000 bushels
were delivered at country points, representing an increase over the
previous year of 24,000,000 bushels, while shipments East from Port
Arthur and Fort William amounted to 117,000,000 bushels, which
compared with shipments in 1920 of 88,000,000. The Dominion
Government's revised estimate of the 1921 wheat crop places the
yield for Canada at 329,000,000 bushels. This estimate should
938 THE CANADIAN ANNUAL REVIEW
bring Canada close to first place among the wheat exporting coun-
tries of the world. It is interesting to note from the latest figures
published by the Dominion Bureau of Statistics, that this large
crop is valued at only $283,000,000, as compared with a value of
$427,000,000 placed on a considerably smaller crop the previous
year. The total value of field crops of 1921 is given as $986,000,000,
a reduction of $469,000,000 from the final estimates of the previous
year. Since our prosperity depends on a constant increase in the
output of farm products, it is gratifying to note that, in spite of
hard times in the West, no substantial reduction is expected in the
acreage which will be sown to wheat this year.
A blow to our export trade was the imposition six months ago
of the Fordney Emergency Tariff. Since the act became effective,
the total value of the agricultural products shipped from Canada to
the United States, has shrunk from $98,455,000, over the correspond-
ing period of 1920, to $25,928,000. To sell our surplus we are now
dependent upon financially demoralized Europe, and are seeking
new markets in the East. In spite of these unfavorable factors, we
show a favorable balance in trade, amounting to $55,000,000, in-
1920, to $220,000,000 in 1921.
The change in world conditions during the past twelve months
may be fairly, measured by the course of exchange. All the nations
of Western Europe have improved their monetary position, but,
with the notable exception of Switzerland, the paper currencies
of the Central and Eastern countries continue to depreciate. The
German mark, the Austrian crown, and the Russian rouble approach
the vanishing point. In the far East there has been no great change.
The currency of Japan still hovers around parity. Throughout
South America there has been a heavy fall. The premium on
American funds in Canada has declined during the year from 15%
to 5}^% at this date, due to our more moderate purchases and
loans made in the United States.
A movement which should have the hearty approval of Can-
adians is the proposed conference of the wheat exporting countries
of the world to consider the problem of marketing grain. Cor-
respondence has already passed between the Royal Canadian Grain
Commission and the Governments of the United States and the
Commonwealth of Australia, and it is hoped that the result will be
the establishment of some international organization, which will
assist in regulating the marketing of crops and eliminating violent
fluctuations in prices.
While Cuba suffered through the collapse in the price of sugar,
I have no misgivings regarding her future prosperity. She was
prosperous before the war, when sugar ruled about 2c a pound.
She has demonstrated in the past, her ability to produce sugar at a
cheaper rate than any other country. She enjoys the natural ad-
vantages of soil and climate, and possesses the most modern sugar
mill installation in the world. A great advantage is her proximity
to the American market. The country has neither currency prob-
lems nor railway deficits to retard her recuperation, and only a
THE ROYAL BANK OF CANADA — ADDRESSES AND REPORTS 939
small war debt to the United States of $10,000,000, on which she is
paying interest.
In keeping our doors open at all times, and under circumstances
that compelled the Government of Cuba to declare a moratorium,
which ultimately resulted in the suspension of three local Joint
Stock Banks and several private banks, we have justified the con-
fidence of our Cuban customers and added to Canada's prestige
throughout the Islands of the Caribbean.
The year's business of our branches in South America, which
were not established until after the boom, has been highly satis-
factory and free from loss. The quality of the business we accept
is exceptionally high class, consisting in great part of the purchase
bills of exchange representing produce exports under Bankers'
Letters of Credit. A favourable feature is the wide distribution of
risks for comparatively small amounts. Sharp declines in the ex-
changes of Brazil, Uruguay and Argentina were at the root of many
of the difficulties which arose in the foreign trade of those countries.
The losses occasioned fell in many cases on the shoulders of United
States exporters, whose shipments were refused. This did not in-
volve us in any way, but it gave our branches the opportunity of
rendering signal service in the settlement of many of the disputes
which took place. Many an exporting firm has put on record its
appreciation of the work we have done in this connection.
Already we are feeling the benefit of the new preferential
Tariff Agreement with the British West Indies, and Canadian ship-
ments of flour show a decided increase since the preference went into
effect. The buying power of the Islands is still restricted, as prices
for tropical products remain discouragingly low. That England is
alive to the economic possibilities of her West Indian Colonies is
shown by her action in sending out a strong committee to enquire
into the most effective means of developing these Islands.
It is be hoped that the claim of British Guiana will not be
overlooked in the development of Crown Colonies. An expenditure
of twenty million pounds sterling has been authorized for public
works of immediate importance in the colonies, and loans amounting
to six million pounds have already been raised for improvements
in Ceylon and Nigeria. The construction of the long projected
railway, through the interior of British Guiana to the border of
Brazil, would not only render accessible crown lands, rich in natural
resources, but would indirectly benefit Canada, whose trade and
interests in Britain's South American possession are steadily in-
creasing.
Our Foreign Trade Department has had numerous enquiries
directed to it on the subject of West Indian trade. It has been able
to place many Canadian firms in touch with reliable houses in
other countries. We find the trade information service which we
are able to give is quite an attraction to the firms from other coun-
tries who are establishing plants in Canada, with a view to doing
business in the broad markets of the British Empire. A few months
940 THE CANADIAN ANNUAL REVIEW
ago we published a very complete sketch of the banking operations
arising from foreign business. This book, entitled "Financing
Foreign Trade," was intended mainly for the information of our
staff, but on request numerous copies have been sent to Universities
and business houses in Canada and abroad.
The business of our Paris branch, conducted as a subsidiary
under the title of "The Royal Bank of Canada (France,)" is chiefly
of an exchange character, largely generated by our own branches
in other parts of the world. The growth of the business has rend-
ered it necessary to secure large premises. We purchased, when
prices were abnormally low, a very prominent site, but which we are
prevented from occuping until certain leases expire. This sub-
sidiary is proving a very useful and profitable connection of the
bank. Our Barcelona branch is also developing a satisfactory
business. Unfortunately the Spanish Government is antagonistic
to foreign banks and has imposed very onerous taxes. We feel,
however, that in view of the long established trade relations between
Spain and the West Indies, we should continue this branch.
The outlook for the coming year is hopeful. It is generally
believed that the worst of the depression is past, and that a gradual
improvement will set in. Canada's progress depends largely upon
the satisfactory adjustment of international economic questions,
as we are closely linked with the outside world.
BRITISH WEST INDIES.
The year 1921 will long be remembered as one of the most
difficult in the commercial history of the British West Indies. It
was marked by a continued decline in the price of sugar, little or no
improvement in the market for cocoa, and a poor demand for most
commodities, with the exception of bananas produced in Jamaica.
The decline in the prices obtained for West Indian products was not
offset by an equal decline in the cost of imports, with the result that
West Indian producers find themselves in somewhat the same posi-
tion as our Western farmers, and must continue to suffer from great-
ly reduced purchasing power, until such time as a readjustment takes
place between the prices of the commodities they sell, and the goods
they buy.
During this difficult period, failures have naturally increased
in number, but in the light of general conditions, have not been
excessive. The last few months have seen the rise of a better feel-
ing, and with prices attaining greater stability, the year 1922 should
prove more satisfactory than the one just past. Trade between
Canada and the British West Indies is developing in a most en-
couraging manner, thanks to natural causes, and to the influence of
the Preferential Tariff Agreement. During the six months ending
September last, exports of Canadian produce to the British West
Indies naturally did not equal in value those of 1920, but the decline
was more moderate than that exprienced in our trade with other
countries. We are now exporting goods to the British West Indies
and British Guiana at the rate of about $12,000,000jper annum,
ROYAL BANK OF CANADA — ADDRESSES AND REPORTS 941
and our imports probably will amount to some $17,000,000. In
these times of reduced values, this represents a highly interesting
volume of business.
JAMAICA.
For the half year ending June 30th last, imports balanced
exports, both being valued at approximately £1,500,000. The
sugar crop amounted to 40,000 tons, but owing to the collapse of the
market, it did not bring a satisfactory return to planters. A better
state of affairs in the banana market was of great assistance to the
island in tiding it over a difficult period. Competition was active,
and prices good. The following are the most recent statistics of
banana exports.
Value Stems
Half year ending June 1921 £791,552 3932622
Half year ending June 1920 718,777 4,254,927
During December, the local Council was called to consider
the putting into effect of a preferential tariff on Imperial and Can-
adian goods. The elected members threw out the whole schedule.
There is no doubt that Jamaica is held back from granting this
preference through her fear of retaliatory action by the United
States, which is a highly important market for Jamaican products,
especially the banana.
TRINIDAD AND TOBAGO
The past year's sugar crop amounted to some 55,000 tons, a
yield nearly equal to that obtained in 1920. The volume of the
cocoa crop was large, but its value declined sharply. These are the
figures :
Cocoa Crop for First Ten Months of the Year.
Volume Value
Pounds Dollars
1919 56,591,767 12,861,750
1920 57,585,723 9,161,355
1921 72,976,763 5,076,973
Exports and imports balanced during 1920, both being valued
at approximately $45,000,000. In the face of lower prices and quiet
business, the trade of Canada with Trinidad for the six months end-
ing September last, showed an actual increase in value. For this
period, imports into Canada from Trinidad were valued at $1,000,-
000, as compared with $340,000 in the preceding year, exports at
$2,524,000 compared with $2,271,000. This is a remarkable show-
ing. The year just past has probably been one of the hardest ex-
perienced in the history of Trinidad, both the cocoa and sugar in-
dustries having been hit by declining prices. Lack of capital
hampered many of the oil companies in the development of their
holdings, but there now appears to be an improvement in this
respect, and a number of enquiries with regard to local property have
recently been made by foreign capitalists.
BARBADOS.
The exceedingly small sugar crop of 1921 intensified the effect
of low prices on the economic situation of Barbados. All sugar
942 THE CANADIAN ANNUAL REVIEW
producers have found it necessary to exercise rigid economy. This
has curtailed the spending power of labor, and has resulted in the
merchants reducing their importations of goods to a minimum.
Until October, the outlook for the coming crop was poor, and it
was expected to be no larger than the 23,000 ton crop of last year.
Better weather conditions during October have somewhat improved
prospects. An act providing for the imposition of an income tax, to
take effect from the first of Jan., 1922, has been passed by the House
of Assembly, but no rate has yet been fixed. The following are the
figures of imports and exports for 1919 and 1920:
1919 1920
Imports $18,688,598 $24,698,577
Exports 10,535,582 17,088,403
GRENADA.
The cocoa crop of 1919, although larger than that of the pre-
ceding year, was about 30 per cent, below the yearly average.
This, combined with low prices, has resulted in a poor year for the
island. The decline in the value of cocoa is illustrated by the ex-
port statistics, which show that, while 79,669 hundred weight,
exported during the first ten months of 1920, were valued at £460,-
129, 83,721 hundred weight exported during the same period of
1921, were valued at only £177,439. Exports of nutmegs also in-
creased in volume, but declined in value. The most recent figures
of foreign trade are for the period of Jan. 1st to Oct. 31.
1920 1921
Exports £588,268 £257,360
Imports 421,712 214,649
ST. KITTS, NEVIS.
Business has been quiet in these islands during 1921, due to
the low price obtained for sugar and cotton, and the consequent
reduction in spending power of the population. The sugar crop
in St. Kitts amounted to 8,000 tons, of which 7,880 had been shipped
up to Sept. 30, the price obtained being £25 per ton, as compared
with £38-10 last year. The outlook for the next sugar crop is good.
ANTIGUA.
The sugar crop of the past year was a moderate one, yielding
11,320 tons, as compared with 15,500 tons in the preceding year.
Estimates of the coming crop place it at 10,000 tons. The im-
provement in the cotton market this autumn was of material assi-
tance to Antigua. Sale of the 1920-21 crop has practically been
completed, at the rate of two shillings, or a little higher, per pound.
Exports for 1920 were valued at £642,437, as against imports of
£554,742, the excess of exports amounting to £87,695. The figures
of foreign trade during 1921 will naturally be found to have under-
gone a substantial reduction.
DOMINICA.
The lime industry is the most important in Dominica. Lime
juice, in common with other products, has fallen heavily in value,
from as high as £45 per pipe of 108 gallons, to the present approxi-
THE ROYAL BANK OF CANADA — ADDRESSES AND REPORTS 943
mate price of £19. The demand for lime products fortunately has
been moderately good and shipments from Dominica are little below
those of 1920. During 1921, a plant has been installed for making
citric acid, the price obtainable for which is estimated to be rela-
tively more favorable than that from which raw lime juice can be
disposed of. The first shipment of several hundred weight of citric
acid crystals, left the island late in November. Cocoa shipments
have been heavier in 1921 than in 1920. Total imports for 1920
are valued at £286,000, and exports at £231,000.
MONTSERRAT.
The value of imports into the Island of Montserrat for 1921, up
to September 30, was $225,000. The most important items are
textiles, flour fish and lumber. Monserrat received 17.77 per
cent, of its imports from Canada. On account of the preferential
tariff, Canada has excellent possibilities for building up a larger
export trade with the island, more especially since the steamers of
the Royal Mail Steam Packet Company (Canadian Line) are the
only ones which actually touch at the port of call. Shipments from
the United States have to be sent by the Quebec Line to Antigua,
and re-shipped from that place by small sailing sloops. Cotton
and limes, the most important crops, were exported to the value of
$185,000 and $20,000 respectively, during the ten months ending
October 31, 1921.
ST. LUCIA.
The principal exports of St. Lucia are sugar, cocoa and lime
products. Good crops of sugar and cocoa were harvested during,
1921. The coaling business of the island has suffered a set-back,
the number of vessels calling for bunker coal having declined sub-
stantially. For the first ten months of the year, total imports are
valued at £172,000, principal exports at £193,000.
BAHAMAS.
It is anticipated that the imports into the Bahamas for the year
ending Dec. 31, 1921, will reach £1,023,000, an increase of approxi-
mately £32,000 over the previous year. The exports for the same
period probably will total £408,000, an increase over 1920 of £108,-
000. The cash receipts from tourist traffic more than made up for
the apparent unfavorable balance of trade in merchandise. The
revenues of the Colony are in excellent condition. Never before
have transportation facilities been so good. Both the Royal Mail
and the Leyland Line intend establishing a monthly service which
will provide direct communication between the United Kingdom and
the Colony. From Canada, the Canadian Government Merchant
Marine, has maintained a three weekly service throughout the year,
and from New York, both the Munson and Ward Lines will run a
weekly service from January to April.
BRITISH GUIANA.
It is estimated that the British Guiana sugar crop for 1921
will reach 100,000 tons, an amount which exceeds early estimates
944 THE CANADIAN ANNUAL REVIEW
by some thousands of tons. The low price obtainable has made it
difficult or impossible for the sugar plantations to operate profitably
under prevailing costs of production. The rice crop is expected to
be a large one. Stocks of rice from the last crop are still on hand,
but a slight improvement is noted in the market. One export in-
dustry, which shows signs of improvement, is the diamond trade,
which has of late attracted increased attention from abroad.
Canada is coming to depend on British Guiana for a constantly
increasing percentage of her raw sugar requirements. During
the six months ending September 1921, Cuba was the only country
which shipped more sugar to us than British Guiana. If the month
of September alone is considered, our imports of sugar from British
Guiana were larger than from any other country, and constituted
25 per cent, of our total purchases of this commodity for the moneth
in question. As a consequence, our trade with British Guiana shows
an appreciable increase. Our imports, during the twelve months
ending November, were valued at $11,830,000, an increase of $6,-
000,000 over 1920. Our exports were lower at $2,678,000.
BRITISH HONDURAS.
No figures of the exports and imports of this Colony for the
current year are yet available, but it is certain that both have fallen
off considerably as compared with 1920. The prices for the prin-
cipal commodities of British Honduras, mahogany, chicle and
cocoanuts, are low, and do not offer encouragement for development.
Exports of Canadian products to British Honduras were larger in
the six months ending September last than ever before, and were
valued at $98,500, as compared with $4,000 during the same period
of the preceding year. Several oil companies are carefully exploring
the Colony for oil, and while nothing tangible as yet has been dis-
covered, there exists a hope that oil might be found in paying
quantities.
The Directors of the Bank were re-elected for 1922 as follows
with Sir Herbert Holt afterwards chosen as President and E. L.
Pease, Vice- President and Managing Director :
Sir Herbert S. Holt, K.B. A. J. Brown, K.C. John T. Ross
E. L. Pease W. J. Sheppard R. MacD. Patterson
Jas. Redmond C. S. WIlcox W. H. McWiliiams
G. R. Crowe A. E. Dyment Capt. Wm. Robinson
D. K. Elliott C. E. Neill A. McTavish Campbell
Hon. W. H. Thorne Sit Mortimer B. Davis Robert Adair
Hugh Paton G. H. Duggan W. A. Black
C. C. Blackadar
THE ROYAL BANK OF CANADA — ADDRESSES AND REPORTS 945
THE ROYAL BANK OF CANADA.
GENERAL STATEMENT NOVEMBER 30th, 1921
ASSETS
Current Coin $16,012,219.57
Dominion Notes 28,540,559.25
United States Currency and other Foreign Currencies 29,912,018.81
Deposit in the Central Gold Reserves 13,000,000 00
Notes of other Banks 2,828,510. 11
Cheques on other Banks 21,594,382. 76
Balances due by Banks and Banking Correspondents, elsewhere than in Canada.. 24,080,818 . 88
Dominion and Provincial Government Sec urities, not exceeding market value 24,050,584 . 08
Canadian Municipal Securities and British Foreign and Colonial Public Securities
other than Canadian, not exceeding market value 9,832,512.43
Railway and other Bonds, Debentures and Stocks, not exceeding market value.... 15, 1 28,520 . 60
Call Loans in Canada, on Bonds, Debentures and Stocks 13,080,429.50
Call and Short (not exceeding thirty days) Loans elsewhere than in Canada 24,543,074 . 57
222,603,630.56
Other Current Loans and Discounts in Canada (less rebate of interest) 163,01 7,459 .32
Other Current Loans and Discounts elsewhere than in Canada (less rebate of
interest) 89,132,820.47
Overdue Debts (estimated loss provided for) 411,365.20
Real Estate other than Bank Premises 985,573.59
Bank Premises, at not more than cost, less amounts written off 10,627,758.86
Liabilities of Customers under Letters of Credit, as per contra 12,535,480.27
Deposit with the Minister for the purposes of the Circulation Fund 985,000.00
Other Assets not included in the foregoing 349,341 .48
Total $500,648,429.75
LIABILITIES
To THB PUBLIC:
Deposits not bearing interest $95,168,911.64
Deposits bearing interest, including interest accrued to date of Statement... 280,447,431 .90
Total Deposits .. $375,616,343.54
Notes of the Bank in Circulation 31,290,337 . 14
Balance due to Dominion Government 23,160,749.32
Balances due to other Banks in Canada 2,426.04
Balances due to Banks and Banking Correspondents in the United Kingdom
and foreign countries 10,572,105. 10
Bills Payable 4,733,607.59
Acceptances under Letters of Credit 12,535,480.27
$457,911,049.00
To THB SHAREHOLDERS:
Capital Stock Paid up $20,400,000.00
Reserve Fund 20,400,000.00
Balance of Profits carried forward 905,044.98
Dividends Unclaimed 14,630.77
Dividend No. 137 (at 12% per annum), payable Dec. 1st, 1921 610,623.00
Bonus of 2%, payable Dec. 1st, 1921 407,082.00
Total $500,648,429.75
H. S. HOLT,
President
EDSON L. PEASE,
Managing Director
C. E. NEILL,
General Manager
AUDITORS' CERTIFICATE
We Report to the Shareholders of the Royal Bank of Canada: —
That in our opinion the transactions of the Bank which have come under our notice have been
within the powers of the Bank.
That we have checked the cash and verified the securities of the Bank at the Chief Office at
30th November, 1921, as well as at another time, as required by Section 56 of the Bank Act,
and that we found they agreed with the entries in the books in regard thereto. We also during the
year checked the cash and verified the securities at the principal Branches.
That the above Balance Sheet has been compared by us with the books at the Chief Office and
with the certified returns from the Branches, and in our opinion is properly drawn up so as to exhibit
a true and correct view of the state of the Bank's affairs according to the best of our information
and the explanations given to us and as shown by the books of the Bank.
That we have obtained all the information and explanations required by us
Montreal, Canada, 19th December, 1921
S. ROGER MITCHELL, C.A.,
W. GARTH THOMSON, C.A
of Marwick, Mitchell & Co
JAMES G. ROSS, C.A.
of P. S. Ross & Sons
,|
Auditors.
31
A GREAT BUSINESS ORGANIZATION
THE CANADIAN MANUFACTURERS' ASSOCIATION
ADDRESS BY PRESIDENT W. S. FISHER
As President of the Association, and also as a
Address by Maritime Province member, I take pleasure in wel-
^f's5* j' h*Cr comm& vou to t*1*8 t*16 Fifty-first Annual General
President"' Meeting of the Association which, by the way, opens
of the the second half century of the Association's career.
C. M. A. I am glad to see so many members from the various
Provinces of Canada assembled here ready to discuss
not only industrial, but also national matters, and to offer their
assistance in dealing with them.
TRADE CONDITIONS
Producers such as the farmers and ourselves; the distributors,
such as wholesalers and retailers; the financial organizations, the
transportation companies, in fact, all groups who are factors in the
nation's business have passed through very trying experiences
during the last two years.
There has been a great decrease in trade ; first, in foreign trade,
owing to international poverty, increases in the tariffs of other
countries, the paralysis of Russia, and the wars and political dis-
turbances in Europe, and Asia ; second, in domestic trade, owing to a
reaction from the above causes, and in addition to local conditions
peculiar to this country.
Bankruptcies, unemployment, and discontent followed as a
matter of course.
The suffering was partly comparative. Everything got out of
scale during the war. Farmers became accustomed to big prices for
their products, manufacturers to trade flowing to them without
effort, workmen to high wages and the distributing trade to easy
sales. This prosperity was largely imaginary. It was a paper
prosperity. People handled more money, that is, received more and
spent more. They are now gradually receiving less and spending
less and the relative positions of most individuals are little changed.
In comparison with other nations Canada is in a fairly satisfac-
tory position. Generally speaking, business is steadily, though very
slowly, improving, the international situation seems to be clarifying,
money is easier, surplus stocks have been reduced, basic production
is recovering, unemployment is decreasing, prices are stabilizing and
demand is reviving.
Canada has still many serious problems to face but the energy
and ability that solved problems in the past should find the solution
for those of the present and future; but all Canadians, forgetting
[946]
THE C. M. A.: PRESIDENTIAL ADDRESS BY W. S. FISHER 947
domestic differences, should first ascertain the national situation,
and then unite in providing for it. Work is the panacea for most of
our ills, physical or mental, and we have now reached a period in
our history when all classes must realize this as never before in order
to hold our own in the world's struggle ahead, when competition will
become keener.
To this end we must develop efficiency in all our walks of life
to a much greater degree so that, after providing for our home wants,
we will have a good surplus to sell in the world's markets.
If all co-operate in support of the right policies, conditions will
rapidly improve; if there is disagreement or the selection of wrong
policies, improvement will cease and conditions will become worse.
THE GREAT PROBLEM.
The National Debt of Canada has increased from three hundred
and thirty-six millions in 1914 to two billion four hundred and
twenty seven millions at the present time. Provisions must be made
not only to pay the interest on this debt but also to reduce it. How
is this to be done? Taxation will raise enough money to pay cur-
rent expenditures, including interest, but no form of taxation of our
present wealth can be practically applied to reduce the principal.
That can only be diminished by developing the national resources
of the country. The farms, the mines, the forests, the fisheries and
the factories, if trade is wisely stimulated, will provide the wealth
which will pay off this debt. In other words, the earning power of
Canada must be vastly increased and all national policies should be
directed to that end, finance, labor, transportation and markets.
In the determination of these policies the following will be the
chief factors, Government, raw material, power supply, Govern-
ment will have two functions active and passive. The active
function will include maintianing safety for life and property, the
administration of justice, the economical conduct of the country's
affairs, the encouragement of productive enterprise and the stimula-
tion of trade.
The passive function will consist chiefly in a judicious abstinence
from harmful activity. The unsettled condition of public opinion
during recent years has produced from Parliament, the nine Legisla-
tures and the numerous boards, commissions and municipal councils
a vast network of laws, regulations and restrictions, many of which
are either worthless or injurious.
There is a foolish economy which defers necessary expenditures
and thus increases the ultimate cost. The country does not want
this but it does require a rational and rigid economy in expenditures.
There has been too much thinking in millions of dollars during the
past few years. Canada should also go slowly in regard to social
legislation which is being constantly urbed by people who are not
as a rule large tax payers. They propose, but others pay. A certain
degree of progress in social conditions is commendable and necessary,
but this must not run ahead of the earning power of tax payers and
948 THE CANADIAN ANNUAL REVIEW
thus lead to the confiscation of savings, a course which must end in
financial disaster.
WEALTH TO BE DEVELOPED.
There is a tendency to use extravagant language in describing
the nature and extent of the raw materials remaining in Canada.
There is no doubt about their existence. It is estimated that there
are three hundred million acres of land fit for farming. One-third is
at present in farm holdings, of which only sixty million acres are
under cultivation. Consequently, two hundred and forty million
acres of fertile land await the plough. Of the world's supplies
Canada produces — 90% of its cobalt, 80% of its asbestos, 85% of its
nickel, 32% of its pulpwood, 20% of its lumber, 20% of its cured
fish, 18% of its oats, 15% of its potatoes, 12% of its silver, 1 1% of its
wheat, 11% of its barley, 4% of its gold, 4% of its copper. These
are only some of the great stores of potential wealth.
While it is an undoubted fact that this wealth exists, its availa-
bility is another matter. To have commercial value it must first be
developed, which will require not only capital but also power, labour,
transportation, and markets.
Power we have in abundance. Coal in the Eastern and Wes-
tern parts of Canada is plentiful ; Alberta alone, it is estimated, con-
tains 14% of all the coal reserves in the world. If central Canada
lacks coal, this area has large supplies of water power. The Water
Power Committee of the Conjoint Board of Scientific Societies,
England, in July 1918, estimated the water powers of the entire
British Empire at between 50 and 70 million h.p. The water power
of Canada was estimated at between 18 and 32 million, of which
iy<i million is developed or under construction. Most of the in-
dustrial centres of Canada are supplied, or can be supplied with
electrical energy derived from water power with ample reservations,
located within easy transmission distance. Until very recently, coal
was considered the most desirable source of power, but now water
power is recognized to be superior. A fair figure representing the
amount of coal equivalent to 1 h.p. of installed water power is 9
tons per year. In 1920 the developed water power h.p. installed
was 2,459,200 h.p. which was equivalent to 21,133,000 tons of coal.
CANADA NEEDS MONEY.
A young country such as Canada requires capital, which is
difficult to secure at any time, and is more elusive now when few
nations have money to lend. Capital flows readily into a country
where it is assured of safety and a reasonable return ; it flies from a
country where it is taxed unduly or threatened with confiscation.
Extravagant public enterprises, financed by the issue of high inter-
est bonds, should be avoided because domestic capital is diverted to
the purchase of these bonds instead of being invested in productive
enterprises. Manufacturing and other forms of production should
not have to bear an unreasonable share of taxation, a policy which
has been strongly urged recently by leading business men in Great
THE C. M. A.: PRESIDENTIAL ADDRESS BY W. S. FISHER 949
Britain and the United States. The Dominion Government has
wisely broadened the basis of taxation by establishing and increasing
the Sales Tax. No one likes the Sales Tax, least of all the manu-
facturers who have to collect it and we hope that it will serve its
purpose and disappear in time, but it has the merit of providing a
large amount of revenue with practically no administrative cost.
The Canadian banking system has stood the great strain of the
War and the after period and has come through stronger than ever
and better able to finance the development of this country. Can-
adian bankers have shown a broad-minded and generous policy in
financing enterprises while at the same time properly safeguarding
the savings of the people entrusted to their care, and we have every
confidence that this policy will not be altered.
We should be proud of our banking system, which, as you know,
closely follows that of Great Britain and more particularly that of
Scotland, the banks being in the hands of private enterprise and
functioning with a minimum of Government supervision, a condition
we hope will continue.
Canada needs skilful and willing workers and, by the way, there
is no restricted class in Canada, segregated from others under the
descriptive term "workers." We are all workers. May I say here,
that those who exchange their services for salaries and wages in
Canadian factories are as skilful, as industrious, as intelligent and
as good citizens as can be found in any other country in the world.
While there are extremists, the great majority realize that their
interests are identical with those of the individual plants in which
they work. If the plants prosper they are assured of steady work at
fair wages; if the plants fail they suffer.
MORE PEOPLE NEEDED.
Our huge national debt, sparsely settled country and immense
undeveloped resources render desirable a return to pre-war condi-
tions, when a large flow of immigration was received from other
countries. Through the press and from the platform financiers and
executive railway officials have stressed this point. A Sub-Com-
mittee of the Cabinet, since the opening of Parliament, has been en-
gaged in a consideration of the question and, as a result of its activi-
ties, the former restrictive money qualification regulation has been
cancelled and immigration officials on the border are now authorized
to admit without reference to the amount of money in his or her
possession, any immigrant considered physically, mentally and
morally fit, who are farmers, farm laborers or female domestic
servants, and who, with reasonable assurance of employment, are
coming to Canada to engage in such occupations. The officers may
likewise admit families of persons already settled here in a. position
to receive and care for their dependents, and any British subject
coming to assured employment, or any United States citizen whose
service, in the opinion of the Minister of Immigration, are required
in Canada. Under the new regulations, continental Europeans are
required to have their passports vised by a Canadian Immigration
950 THE CANADIAN ANNUAL REVIEW
Officer stationed in Europe, and other immigrants, with the excep-
tion of British subjects or American citizens, must have their pass-
ports vised by a British Consul. The elimination of the money quali-
fication regulation is likely to result beneficially to Canada, but it is
to be hoped that the Government will in addition, without encour-
aging indiscriminate immigration follow the advice so freely tender-
ed to speed up their efforts to secure desirable immigration so
necessary for the development of the country.
MARKETS HOME AND FOREIGN.
Materials, capital and labor can produce goods but the reward
comes only when the goods are sold. This brings me to the question
of markets. The home market is the best market. The greater
part of the products of the farms, the mines, the fisheries, the forests
and the factories is sold in Canada. Surely then the home market
should be adequately guarded by the Customs tariff.
It is an extraordinary fact that, while all other industrial coun-
tries in the world have greatly increased their Customs Tariffs since
the war, Canada is the only country that has followed the opposite
policy. This country has suffered three downward revisions in the
tariff inside of three years; one in the Budget of 1919, one in the
Budget of 1920 and one in the last Budget. While other countries
have been raising their tariffs and shutting our goods out, Canada
has thrice lowered her tariff, encouraging the goods of other coun-
tries to come in. This policy is not only opposed to the trend of
international events, but is also contrary to the national fiscal policy
under which this country has prospered and developed for over forty
years.
Will every succeeding year see another tariff re vision down ward?
Where will it end?
Is it not a sound policy to encourage the manufacture of articles
used by Canadians in Canada, from Canadian materials and by
Canadian workmen so that wealth may be accumulated in Canada
and then taxed to pay off the national debt ? Or should the national
resources be plundered and sold in crude form, presenting to other
countries the profits and employment from turning them into fin-
ished products, leaving Canadians bond slaves forever paying inter-
est on the national mortgage? There are a hundred arguments in
favor of the protective policy : There is only one of any weight that
is ever used against it, viz: that if there were no Customs Tariff,
Canadians might be able to buy some imported articles cheaper than
they now buy the same Canadian articles. There is not the slightest
indication that the abolition of customs duties in Canada would pro-
duce this result. On the contrary, there are the strongest reasons for
believing that, if the Customs tariff were abolished the manufac-
turers of other countries would flood the Canadian markets with
their surplus goods at prices below the cost of production, until
many Canadian factories were forced out of business. Then the
manufacturers of other countries, having largely eliminated Cana-
dian competition, could set what price they wished for their goods
THE C. M. A.: PRESIDENTIAL ADDRESS BY W. S. FISHER 951
in Canada, and in the end Canadians would pay more, not less, for
the manufactured goods they buy. As a matter of fact, the prices
of Canadian manufacturers compare favourably with, and in many
cases are lower than, the prices of the manufacturers of other coun-
tries where living conditions are similar to our. The majority
of Canadians must believe that this is so, because, where the Tariff
Commission toured Canada in 1920, we asked for specific proof of
charges to the contrary, but our request was unanswered, except by
vague general statements. The fact that 80 per cent, of the pur-
chases of Canada's largest departmental store are Canadian goods
is a striking proof that Canadian quality and prices are acceptable
to the buying public. On the Protectionist side there is solid achieve-
ment which has created 38,000 manufacturing establishments in
Canada, representing invested capital of $3,230,000,000, producing,
annually, products valued at $3,500,000,000 and providing a living
for 700,000 employees and their families or, approximately, two
million people. On the other side there are only prophecies of what
might be, if certain theories were put into effect without regard for
the wisdom of experience and the policies of other countries.
NEW ARTICLES.
The general public scarcely yet realizes the enormous develop-
ment in manufacturing in the last few years. It shows what we can
do when given the opportunity. During the war other countries
which had previously shipped us great quantities of goods, could no
longer do so and we had to either make these goods ourselves or go
without them. The manufacturers started to make them and, owing
to the war conditions, their early efforts were not stifled by compet-
tition before they got under way. In addition, the Government rais-
ed the tariff materially by imposing a uniform revenue tariff in-
crease of 7^%. With this increased protection, a reduction of
competition from abroad, and a good demand for manufactured
goods from other countries, the manufacturing industries of Canada
expanded greatly. Several thousand articles are now made in Can-
ada which were not made here six years ago. Surely Canada will not
take a backward step and surrender this advance to her competitors.
TARIFFS AND CARRIERS.
Everyone admits that the transportation problem in Canada is
serious but everyone does not realize that transportation is in-
separably linked with the Customs tariff. A scrutiny of the articles
carried by the transportation companies shows that a very large
percentage of the high paid tonnage consists either of products
moving to factories or to factory populations and those dependent
on them, or of goods moving from factories to other factories in a
partly finished condition, or to consumers in a finished condition.
The transportation systems have been developed on the Bast
and West principle. Their welfare is dependent on the maintenance
of adequate duties between Canada and the United States, as every
reduction in these duties increases North and South traffic at the
expense of East and West traffic.
952 THE CANADIAN ANNUAL REVIEW
It is strange that the strongest demands for a reduction of the
tariff come from Western Progressive members of Parliament, who
are equally insistent on getting lower freight rates. The develop-
ment of many new industries has provided traffic from industrial
centres to the grain-growing areas. This traffic moves throughout
the entire year, and contributes in a very substantial way to the
total revenues of the transportation companies. Nothing is more
certain than that our transportation services could not have ob-
tained their present magnitude and efficiency without the industrial
expansion which provides return loads for the trains that carry farm
products from the Prairies. But for this, the freight rates on agricul-
tural products from the Prairies would have been so high that the
Western farmers could not ship their produce to the sea.
The injurious effect of lowering customs duties would extend to
the Canadian Government Merchant Marine and private lake and
ocean shipping, the national ports of Canada, the canals, and the
national financial organizations, all of which share with the railways
in the development of domestic and foreign trade. The Govern-
ment has decided to give the public ownership of railways and the
Merchant Marine a fair trial and this policy cannot be criticized
adversely unless a better alternative is suggested. We have none to
offer but we do offer our co-operation. In the end the experiment
will succeed only in the degree to which it avoids political inter-
ference and provides that efficient service at reasonable cost which is
so necessary to stimulate foreign and domestic trade.
SELLING GOODS ABROAD.
Although the home market is the best market Canada needs
other markets also. Recent years have seen a great fluctuation
in our external trade as the following statistics show: —
Year Ending March
1914. ...
Imports
$ 633 692 449
Exports
$ 431 589 658
1919
916,429,335
1,216,443,806
1920
1,064,528,123
1,239492,098
1921 .
1 240 158 882
1 189 163 708
1922
'7471804J32
740.240.680
As the statistics are in values instead of quantities the volume
of trade is not in exact proportion to values, owing to the inflation
of currency, but they demonstrate that the trade of Canada ex-
panded greatly during and immediately after the war, and that dur-
ing the past year it has shrunk considerably. It is not necessary to
urge you to increase your export sales. You will do that readily if
you can find markets. I do not think that the public realizes the
great efforts put forth by Canadian manufacturers to retain the ex-
port trade developed during the War. That we have retained a
considerable part of it is encouraging. British Preferential tariffs
give us an advantage in several British countries and we are seizing
these opportunities. A party of our members, which I had the
pleasure of accompanying, has just returned from the West Indies,
British Guiana and Bermuda. Groups of manufacturers have sent
agents to China, to South America and other countries seeking
THE C. M. A.: PRESIDENTIAL ADDRESS BY W. S. FISHER 953
trade. Canadian manufactured goods are now sold in forty-four
countries, which shows that her manufacturers are losing few op-
portunities to sell their goods abroad.
Our's is a country of great distances, of wide, sparsely settled
spaces divided into scattered units with diverse interests. This,
added to the fact that for nearly four thousand miles we skirt the
northern boundary of the United States with its large population,
highly developed and diversified interests within easy reach of our
chief centres of population, makes the problem of our cohesion and
development a difficult one.
Only wise and far sighted statesmanship, with due considera-
tion for all classes and sections, can accomplish this and weld to-
gether these widely scattered provinces into a nation, prosperous
and happy, as upon the degree of prosperity and contentment which
exists among our people, whether east or west, depends our welfare
as a country.
OUR ASSOCIATION.
May I say a few words about our Association. The C. M. A-
is no mushroom growth. It is now in its fifty-first year, and is a
thoroughly national organization. It has a large membership in
every province of Canada. Its government is democratic. One
member's vote is as good as another's, irrespective of the size of his
firm. The final power resides in the Annual Meeting; between
Annual Meetings it is delegated to the Executive Council. It is
significant that about eight hundred of our members serve on the
various committees of the Association, a certain number retiring
each year, and thus providing new blood while preserving contin-
uity. One of the secrets of the Association's strength and usefulness
is that it has never been a one man concern or a group of men con-
cern, nor has it ever been dominated by political, sectional or geo-
graphical influence. It is not a merchandising or employment organ-
ization; it has always been a body of manufacturers working har-
moniously together to study not only industrial matters, but also
questions of national interest. Our Association is equipped to deal
with national, provincial and municipal matters. The Divisions
and Branches deal with matters within their respective territories,
but co-operate to secure national action on national affairs. The
membership has increased steadily from the time of the Associa-
tion's foundation, 1872. till the present. It is now about 4,300.
On the administrative side the Association has grown from a one
room office in Toronto, with a staff of three, to offices in Victoria,
Vancouver, Winnipeg, Ottawa, Toronto, Hamilton, Montreal, and
Amherst, with a total salaried staff of sixty-five. The cost of main-
taining this organization is a very trifling percentage of the annual
value of goods manufactured in this country.
It is significant that during the past two years of trade depres-
sion, our Association has experienced a net gain in membership each
year and it is especially graitfying to note that a large part of this
increase has been west of the Great Lakes.
954 THE CANADIAN ANNUAL REVIEW
EXTRACTS FROM REPORTS OF COMMITTEES
Executive Committee W. S. Fisher, Chairman
A report will be presented at a later session on the "Made-in- Canada" cam-
paign, which last year was broadened into a "Produced-in-Canada" campaign
and as such received the co-operation of agricultural and other organizations.
Your Committee begs to emphasize the great importance of this work which is
related so intimately to the prosperity of the country.
Acting with the Tariff, Legislation, Commercial Intelligence and Divisional
Committees, your Committee arranged for a deputation to interview the Dominion
Government in Ottawa on February 23rd in regard to the following matters con-
nected with the trade and commerce of Canada: —
The French Treaty Taxation.
Canadian Customs appraisal and Preferential Tariff with Australia.
depreciated currencies. Produced-in-Canada Train to France.
Anti-Dumping Legislation. Establishment of a National Bureau
Marking country of Origin on im- of Industrial Research and the
ported goods. Commercial Intelligence Service.
56 members of our Association formed the deputation, and it is interesting
note that the delegations from British Columbia and the Maritime Provinces were
large and representative in spite of the distance they had to travel.
The value of the Association to members depends on how much they use it.
That members are using the services of the Association is shown by the number of
meetings held during the past year which are summarized as follows : —
327 General Committee and Trade Section meetings held at Head
Office with a total attendance of 4,905
399 meetings, General, Committee and Trade Section meetings
held at Divisional, Ottawa and Branch offices with a total
attendance of. 4,150
726 meetings with a total attendance of 9,055
In the past two or three years there has been an increasing tendency for the
trade sections to function through the Divisional offices. Last year, 434 meetings
of 76 different groups have been held, distributed as follows : —
Toronto 192 meetings 38 groups Hamilton 12 meetings 1 groups
Montreal 148 " 21 " Winnipeg 9 3
Vancouver and Ottawa 7 6
Victoria 63 5 Amherst 3 2
In the previous year there were 384 trade section meetings. Thus last year
showed an increase of 50 meetings. With few exceptions those who attended these
meetings are located within their respective Divisions. Reports of these meetings
are centralized in the Head Office, so that co-operation may be developed where
necessary, and there hve been many instances where prompt action has been
facilitated through the co-operation of groups in different Divisions.
Tariff Committee Joseph Picard, Chairman
The past three years have witnessed numerous changes in the tariffs through-
out the world. Practically every industrial country has revised its tariffs since
the war and these revisions, with the single exception of Canada, have been up-
ward. As a result, the work of your Committee and the Department has been
greatly increased owing to the extensive requests for information in regard to these
new rates. The international situation to-day is that trading countries are
fenced about with tariffs much higher than those in existence before the war.
This has an important bearing on Canadian trade.
The outstanding tariff changes in other countries during the past year were
as follows : —
THE C. M. A.: ANNUAL REPORTS OF COMMITTEES 955
(a) The United States— the revised United States Tariff, which is now before
Congress, has already passed the House of Representatives and has been reported
on favourably by the Finance Committee of the Senate. Our information is that
it will become law, with but few important changes, in the not-distant future.
This Bill provides protection higher, on the whole, than any previous tariff of the
United States. An analysis showing the present and proposed United States
tariff rates and their effect on some of the principal exports from Canada has been
forwarded to our members. Attention is directed to an important Act which was
passed in May, 1921, which greatly strengthened the anti-dumping provisions of
the United States Customs Act. If the United States Customs find any one
article that is being imported at a lower price than the home market price in the
country of export an order is issued to their Customs officials which results in the
complete prohibition of all imports in that class from any producer in such country
of export.
(b) France, Italy, Belgium, Denmark, Spain, Portugal, Sweden, Switzerland,
Greece, Bulgaria, Serbia, Roumania, Germany, Japan, and other countries have
made substantial increases in their tariffs since our last annual meeting. There
has been an erroneous impression that the Safeguarding of Industries Act, which
became effective on August 19th., 1921, is Great Britain's only protective measure.
On the contrary, since 1915 the United Kingdom has enforced high protective
duties on behalf of its motor cars, musical instruments, gramophone, record,
moving picture film and other industries.
Membership Committee P. E. Joubert, Chairman
Fiscal Year
1899
Association 's
Total Mem-
bership
132
Net Gain Over
preceding
Year
208
485
255
195
236
328
265
85
4*
171
252
Association 's
Total Mem-
Fiscal Year bership
1911 2725
Net Gain Over
preceding
year
117
28
254
36
18
78*
256
66
225
531
170
41
1900
1901.. ..
340
825
1912 2,753
1913 3,007
1914 3 043
1902
1 080
1903
1,275
1915 3 Ofil
1904
1 511
1916
1917
1918
2,983
3,239
3,305
1905
1 839
1906
2,104
2,189
2 185
1907
1908
1919
3 530
1920
1921
1922
4,061
4,231
4.272
1909... .
1910
2,356
2,608
* Loss.
Transportation Committee W. S. Campbell, Chairman
FREIGHT RATES
At the beginning of this report the Committee's views as to a further reduc-
tion in freight rates were defined. In this section the work done by your Com-
mittee to secure reductions which have been made effective, as well as a further
reduction, is outlined.
A memorandum was prepared and submitted to the Executive Committee of
the Railway Association of Canada on August 18th, 1921. This Committee
which consisted of the presidents of the different railways, intimated that while
they appreciated the necessity for some reductions in rates being made, they
were unable to make a reduction at that time because the wage decrease, tenta-
tively put into effect in July, had not been definitely settled. Within a week
after our conference the Board of Railway Commissioners called the same Ex-
ecutives to Ottawa and informally discussed with them the question of reducing
freight rates. The railways' representatives were the only ones invited to this con-
ference, although it should be stated that we had supplied the Board of Railway
Commissioners with a copy of the memorandum which we presented to the
Railway Executives. Following this conference judgment was rendered stating
that a general reduction in rates amounting to 10 points off the remaining portion
of increase granted September 13th, 1920, should be put into effect. As the ma-
jority of the Board did not concur, the judgment did not become effective. The
956 THE CANADIAN ANNUAL REVIEW
majority of the Board were of the opininon that savings accruing from reductions
in wages had not been definitely determined and until they were, no reduction
rates could be made. Your Committee followed the matter further with the
Railway Executive, but were unable to secure any satisfactory statement from
them pending further action of the Board of Railway Commissioners. In Novem-
ber the Board issued another judgment which was concurred in by all members
ordering the same reduction as that just referred to, the reduction taking effect on
December 1st, 1921. We understand that the carriers' representatives proposed
to the Board that a reduction in basic commodities would be the proper method
of decreasing freight rates, but the Board considered that the best interests of the
country would be served by a flat percentage order.
As this reduction did not reduce the level of rates anything like that repre-
sented by the reduction in prices of commodities, your Committee, at a meeting
on April 6th, considered further action for the purpose of securing a further sub-
stantial reduction. A sub-committee was therefore named for the purpose of
assisting the Transportation Department in the preparation of a memorandum in
support of this view. Many complications appeared, the chief among which
was the action of the Government referred to in the Speech from the Throne
regarding the question of reduction in basic commodity rates and the possible
reinstatement of the Crow's Nest Pass Agreement on July 7th, 1922, also the so-
called investigation re "equalization of Eastern and Western Freight rates,"
commenced before the Board of Railway Commissioners in December, 1920, and
concluded on March 30th, 1922.
Commercial Intelligence L. L. McMurray, Chairman
As forecast in the last annual report of this Committee to the Annual
meeting, the definite grouping of its work into domestic services and export ser-
vices has become even more accentuated. Attendant on and largely resulting from
a great mass of detail and routine work, goes an important and increasing list of
constructive measures. The Department is a general information bureau on mat-
ters pertaining closely or remotely to manufacturing interests. It acts, in many
cases, as a testing and inspection laboratory on commercial and economic pro-
positions. A great array of facts and sincere thought in attempting to arrive
at the probabilities are the tools, equipment and apparatus used in the tests and
inspections.
In domestic activities the following have been foremost subjects: — the plan-
ning of a series of graphic exhibits of Canadian products ; co-operation with the
Ottawa Office and the Bureau of Statistics regarding the production of a concise
general statistical statement dealing with Canadian business; propagation of
the Made-in-Canada idea, negotiating particularly with large buyers, municipal
corporations, etc., with a view to getting general acceptance of Made-in-Canada
principles; furnishing data to the Canadian Red Cross Society to enable it to
locate promptly adequate supplies of relief commodities in case of any great
emergency, — fires, floods, etc.; close study of a new movement suggesting re-
forms in the distribution and credit systems.
Export questions include: — investigations into probable export tonnage
available in the event of direct sailing to Mexico being established; thorough
investigation and report on the Franco-Canadian Exhibition Train; plans for
the British West Indies trip; plans for co-operation with the Department of Trade
and Commerce on many questions relating to the Overseas Commercial Intel-
ligence Service ; preparation of data relating to the economic conditions in China
and Canada's relation thereto for use at the Disarmament Conference in Washing-
ton; preparation and circulation of articles, bulletins and pamphlets dealing with
export opportunities for Canadian products; checking misinformed anti-Canadian
propaganda in foreign publications; maintaining interchange of information and
ideas among the export clubs ; research into the possibilities of credit insurance for
export trade, and plans for the various export features taking place at this Annual
Meeting.
THE C. M. A.: ANNUAL REPORTS OF COMMITTEES 957
Under direction from the Council, the Committee has undertaken the super-
vision of the editorial work on the new edition of the Canadian Trade Index
which will be ready for distribution early in 1923. This work is of equal impor-
tance to both domestic and export services, and together with material gathered
on the information schedules of the Trade Index returns, supplemented by our
extensive library of statistical and technical reference books, foreign trade publi-
cations, constant communication with specialists in Canada and abroad, forms the
basis from which the routine work and even some of the constructive work of the
Department grows.
Legislation Committee J. C. MacFarlane, Chairman
COMPANY LICENSING CASES
One of the difficult questions arising under the British North America Act
has been that concerning the right claimed by provincial governments to ex-
ercise a certain jurisdiction over companies incorporated by the Dominion Govern-
ment.
While the recent decision of the Judicial Committee of the Privy Council in
the Great West Saddlery Company vs. the King, and the various other cases
consolidated therewith (involving about seventy-five companies which were
doing business in Canada under Dominion charter and were taxed by the pro-
vinces in which they operated) throws no additional light on this question, it
does, at all events, establish that the provinces have no right by any provincial
legislation to interfere with the operations of Dominion companies. An attempt
to do this had been made in several provinces by statutes requiring Dominion
companies to take out provincial licenses to do business and by the imposition of
license fees, and forbidding the carrying on of business in case of default. While
it is conceded that the provinces may impose a tax on all companies doing business
within their respective limits, there can be no discrimination in this respect be-
tween provincial and Dominion companies, neither can any province prevent a
Dominion company from carrying on its business for default in payment of taxes
so imposed. Transactions carried on through non-resident travellers, or by cor-
respondence is not "doing business" within the meaning of the provincial legisla-
tion. This decision also establishes that, with regard to the acquisition of lands
within any province by a Dominion corporation, it is bound by the local laws pre-
vailing in each province and where a mortmain law exists, as in Ontario, it is bind-
ing on Dominion companies, and land cannot be acquired or held by them except
in accordance with the provisions of such provincial law.
Since this judgment of the Privy Council was handed down on 25th Febru -
ary, 1921, seven provinces in all have enacted amendments of their provincial
acts to square with the findings of the Judicial Committee — namely Ontario,
Quebec, Nova Scotia, New Brunswick, British Columbia, Saskatchewan and
Alberta.
Industrial Relations S. R. Parsons, Chairman
CO-OPERATION IN INDUSTRY
Your Committee during the past year has given considerable attention to the
question of the need of promoting co-operation between employers and employees.
Your Committee feels that the real solution and the only solution of the so-
called problem of industrial relations is the development of a spirit of mutual
good-will and co-operation instead of one of antagonism. While anything in the
way of paternalism is, of course, to be deprecated, your Committee is convinced
that much useful work can be done along lines of working together and that good
results will show themselves, not merely in improved relations between manage-
ment and men, but also, in the most tangible way, in improved production and
efficiency.
958 THE CANADIAN ANNUAL REVIEW
This is a question which your Committee feels to be of vital importance
at the present time for the reason that if Canadian industries are to compete
successfully with other manufacturing nations where standards of living and of
wages are so much lower, it is essential to reduce the unit cost of production. And if
the need for co-operation is clear at the present time, equally clear is the oppor-
tunity to develop it — an opportunity which does not present itself when industry
is booming, and there is a tendency for employers and employees, to some extent
to disregard each other's interests. It only remains to add that — while your Com-
mittee approved thoroughly of the principal of "freedom of employment" to all
workers, irrespective of their affiliation with any church, order or union — it feels
that the common interests of employers and employed would be greatly furthered
if some form of co-operative working, adapted as might be applicable thereto, were
introduced in the particular units of industry.
WORK COUNCILS
A considerable increase in the development of works councils and shop com-
mittees which are, of course, forms of co-operative working, has been noticeable
during the past year particularly in the United States, but also, to a lesser degree,
in Canada. Your Committee watched with interest what would happen to these
work councils when it became necessary for wage reductions to be put into effect.
As a matter of fact, in the majority of cases, in the United States particularly, those
industries which had developed a works council were able to make wage reductions
with less trouble and bitterness than industries which had no works councils .
Your Committee feels that the development of works councils is in accord with the
policy of the employers of Canada as laid down at the National Industrial Con-
ference in September, 1919, to the effect that dealings between employers and
employees should be within the particular plant or unit of industry.
AN IMPORTANT CANADIAN INSTITUTION
ANNUAL REPORT
OF
THE IMPERIAL BANK OF CANADA
The Annual General Meeting of the Imperial Bank of Canada
was held at the Head Office in Toronto on Thursday, 25th of Nay,
1922. The Directors' Report and Statement of Affairs of the Bank
for the year ending 29th of April, 1922 were presented as follows:
THE REPORT
The Directors have pleasure in presenting to the Shareholders
the Forty-seventh Annual Report and Balance Sheet of the affairs
of the Bank as on 29th April, 1922, together with Statement of
Profit and Loss Account showing the result of the operations for the
year.
The balance at credit of Profit and Loss Account brought forward
from last year was $1,171,839.60
The net profits for the year, after deducting charges of management
Auditors' Fees and interest due depositors and after making
provision for bad and doubtful debts and for rebate on bills
under discount were 1,265,838. 64
$2,437,678.24
This amount has been appropriated as follows: —
Dividends at the rate of 12% per annum $ 840,000.00
Special Bonus of \% for the year 70,000.00
Annual Contributions to Officers' Pension and Guarantee Funds... 42,500.00
Reserved for Bank Premises 200,000.00
Dominion Government Taxes Paid and Estimated 110,000.00
Balance of Account Carried Forward 1,175,178.24
$2,437,678.24
During the year branches of the Bank have been opened at Jasper, Alberta;
Harding, Manitoba, ; and Tottenham, Ontario.
The following branches have been closed: —
In Alberta— Bittern Lake; Edmonton, 124th Street; Friedenstal; Leslieville.
In Ontario — Ramore; Union; Welland South.
In Quebec— St. Jovite Station.
In Saskatchewan — Cando; Carlton.
It is with great regret that your Directors have to record the
death during the year of the General Manager, Mr. William Moffat,
also of Mr. Edward Hay, formerly General Manager and latterly a
Director. Both these officers devoted practically their entire busi-
ness careers to the service of the Bank.
Mr. A. B. Phipps, formerly Assistant General Manager, has been
appointed General Manager and Mr. G. D. Boulton, formerly Chief
Inspector and Mr. H. T. Jaffray, formerly Western Superintendent
have been appointed Assistant General Managers. The vacancy
in the Board has been filled by the appointment of Mr. John W.
Hobbs.
[959]
960
THE CANADIAN ANNUAL REVIEW
GENERAL STATEMENT
LIABILITIES.
Notes of the Bank in circulation $ 9,851,139.00
Deposits not bearing interest $20,091,430.00
Deposits bearing interest, including interest accrued to date of
of Statement 78,341,272.73
98,432,702.73
Balances due to other Banks in Canada 543,002.74
Due to Banks and Banking Correspondents in the United King-
dom 12,486.97
Deposits by and Balances due to Banks elsewhere than in Canada
and the United Kingdom 491,554.56
Acceptances under Letters of Credit (as per contra) 100,700.00
1,147,744.27
Total Liabilities to the Public $109,431,586.00
Capital Stock paid in 7,000,000.00
Reserve Fund Account 7,500,000.00
Dividend No. 127 (payable 1st May, 1922) for three months at
the rate of 12% per annum 210,000.00
Bonus of 1% for the year, payable May 1st, 1922 70,000.00
Balance of Profit and Loss Account carried forward 1,175,178.24
8,955,178.24
$125,386,764.24
ASSETS.
Current Coin held by the Bank $ 1,802,073.42
Dominion Government Notes 12,804,066 . 25
14,606,139.67
Deposit in the Central Gold Reserves 4,002,533.32
Deposit with the Minister for the purposes of the Circulation Fund 369,040.47
Notes of other Banks 998,045.00
Notes of other Banks 998,045.00
Cheques on other Banks 5,680,686.64
Balances due by other Banks in Canada 397,580.57
Due from Banks and Banking Correspondents in the United Kingdom 262,052.40
Due from Banks and Banking Correspondents, elsewhere than in Canada and
the United Kingdom 2,013,825 . 77
$ 28,329,903.84
Dominion and Provincial Government Securities, not exceeding
market value $14,153,700.38
Canadian Municipal Securities and British, Foreign, and Col-
onial Public Securities other than Canadian 1,479,770.71
Railway and other Bonds, Debentures and Stocks, not exceed-
ing market value 857,016.41
. $ 16,490,487.50
Loans to Provincial Governments $ 1,044,902.40
Loans to Cities, Towns, Municipalities and School Districts 7,000,827.59
Call and Short Loans (not exceeding thirty days) in Canada
on Bonds, Debentures and Stocks 3,964,800.91
Call and Short Loans (not exceeding thirty days) elsewhere
than in Canada : .' 1,800,000.00
13,810,530.90
$58,630,922 . 24
Other Current Loans and Discounts in Canada (less rebate of interest) 59,151,220.62
Liabilities of Customers under Letters of Credit (as per contra) 100,700.00
Overdue Debts (estimated loss provided for) 352,154.45
Real Estate (other than Bank premises) 552,616.33
Mortgages on Real Estate sold by the Bank 408,026.70
Bank Premises, at not more than cost, less amounts written off 5,521,006.30
Other Assets not included in the foregoing 670,117.60
$125,386,764.24
A. E. PHIPPS, General Manager.
PELEG ROWLAND, President.
Auditors' Report to Shareholders:
We have compared the above Balance Sheet with the books and acounts at the Chief Office of
Imperial Bank of Canada and with the certified returns received from its Branches, and after check-
ing the cash and verifying the securities at the Chief Office and certain of the principal Branches on
on 29th April, 1922 we certify that in our opinion such Balance Sheet exhibits a true and correct
view of the Bank's affairs according to the best of our information, the explanations given to us and
as shown by the books of the Bank.
'In addition to the examinations mentioned the cash and securities at the Chief Office and cer-
tain of the principal Branches were checked and verified by us during the year and found to be in
accord with the books of the Bank.
All information and explanations required have been given to us and all transactions of the
Bank which have come under our notice have in our opinion been within the powers of the Bank.
Toronto, 17th May, 1922. R. J.' DILWORTHi Jicl; ] of Clarkson. Gordon & Dilworth.
ANNUAL REPORT OF THE IMPERIAL BANK OF CANADA 961
Your Directors feel it would be more convenient to the Share-
holders to hold the Annual Meeting in future in November in place
of April as heretofore and a Bylaw changing the date of the Annual
Meeting will be submitted to you for your approval.
The Head Office and Branches of the Bank now numbering 212
have in accordance with the custom been carefully inspected during
the year and the Auditors appointed by you have also made their
examinations as required by law. Their Report and Certificate is
attached to the Balance Sheet.
The Directors have again pleasure in testifying to the efficient
and satisfactory manner in which the officers of the Bank have dis-
charged their respective duties during the year.
All of which is respectfully submitted.
PELEG ROWLAND, President
The President in his address reviewed general business condi-
tions and the General Manager explained the various items and
changes in the Balance Sheet. The Report was adopted unanimous-
ly and other customery motions made and carried.
Mr. G. T. Clarkson, F.C.A., Toronto, and Mr. R. J. Dilworth,
F.C.A., Toronto, were appointed Auditors until the next Annual
General Meeting.
The Scrutineers appointed at the Meeting reported the following
Shareholders duly elected as Directors: — Peleg Rowland, Wm.
Hamilton Merritt, M.D., Sir James Aikins, K.C., John North way,
Lieut.-Col. J. F. Michie, Sir James Woods, Frank A. Rolph, R. S.
Waldie, George C. Heintzman, J. W. Hobbs.
At a subsequent meeting of the Directors Mr. Peleg Rowland
was re-elected President and Dr. Wm. Hamilton Merritt, Vice-
President of the Bank.
PELEG ROWLAND, President
A. E. PHIPPS, General Manager
Ten Years Progress of the Bank
Date
1913
Capital
Paid up
$6,788,169
Reserve
Fund
$7,000,000
Deposits
$56,802,111
Total
Loans
$47,794,377
Total Divi-
Assets dends
$ 77,964,108 12%
1914
1915
1916
1917
1918
1919
1920
7,000,000
7,000,000
7,000,000
7,000,000
7,000,000
7,000,000
7,000,000
7,000,000
7,000,000
7,000,000
7,000,000
7,000,000
7,500,000
7,500,000
58,238,854
55,081,904
60,218,627
66,221,281
75,394,652
83,189,234
97,784,217
49,888,335
48,410,659
46.409,027
50,767,243
50,252,209
59,663,123
74,736,153
78,863,251 12%
75,568,247 12%
81,911,757 12%
90,775,728 12%
101,817,909 12%
112,186,457 12%
128,274,168 12%
1921
1922
7,000,000
7,000,000
7,500,000
7,500,000
99,125,011
98,432,702
77,176,033
74,375,246
Plus Bonus 1%
128,376,612 12%
Plus Bonus 1%
125,386,764 12%
Plus Bonus 1 %
A GREAT INSURANCE RECORD.
ANNUAL STATEMENT
OF THE
SUN LIFE ASSURANCE COMPANY OF CANADA.*
Your Directors present this, their 51st Annual
Director's Report, in full confidence that it will be regarded as
Annual evidence of highly satisfactory progress. Particularly
Report in all those departments of the business which indicate
for the strength and expansion do the figures now submitted
Year 1921. show advances even beyond the most sanguine expec-
tations. New assurances for $107,233,195.36 were
applied for. This is a small decline from 1920, which was, to a cer-
tain extent, a year of inflation. These figures, however, as com-
pared with those for 1919, show that the normal ratio of steady
and large-scale progress has been maintained. New policies were
actually issued and paid for to the amount of $90,030,035.66.
The passing of the Five Hundred Million mark has made the volume
of assurances in force unusually impressive. After deducting can-
cellations due to deaths, maturities, surrenders and other causes,
this figure now stands at $536,718,130.53, representing an increase
of $50,076,895.36 over the preceding year.
The total income from premiums, interest and other sources is
far in excess of anything hitherto received. The amount $31,107,-
149.16 is more than that of the preceding year by $2,355,570.73.
$11,967,069.62 was paid to policyholders or their beneficiaries in
death claims, matured endowments, profits, etc., which brings the
sum similarly paid out since the Company's foundation up to
$114,155,003.92. The mortality among our policyholders has been
exceptionally favourable. In view of the fact that the volume of
business on our books had increased so largely, a much larger
amount than was experienced in 1920 was anticipated. The death
claims, however, were actually, $319,279.45 less than during the
previous year.
A remarkably large number of high-class securities were avail-
able as investments during the year. They could be obtained at
prices to yield a high rate of interst, and many were for long terms.
These conditions presented to your Directors an attractive and
unique opportunity for greatly adding to the future earning power
of the Company, and they have profited by the position to the fullest
extent which the large funds at their disposal would permit. The
average rate of interest earned during the year on the invested funds
reached the high figure of 6 • 07%, which in itself testifies to the care
and forethought with which our investments have been chosen in the
past. The growth of the Company's assets is also note-worthy.
They are now at $129,372,127.33 an increase of $14,532,682.85.
*NOTE. — Annual Meeting Feb. 14, 1922. Preceding annual reports may be consulted in the
1911-20 volumes of The Canadian Annual Review; A History of the Sun Life will be found in the
19 10 Supplement.
[962]
THE SUN LIFE ASSURANCE COMPANY OF CANADA 963
The sum of $1,849,089.95 has been paid or allotted in profits
to policyholders, the remaining net surplus being $10,383,909.10
over all liabilities and capital stock, a gain during the year of
$2,019,241.95. These large additions to assets and surplus justify
the claim that the year through which the Company has just passed
has been the most profitable and satisfactory in the whole of its
history. The members of the Board who retire by rotation are: —
Representative of the shareholders : Mr. S. H. Ewing, Mr. J. Red-
path Dougall, Sir H. S. Holt and Mr. T. B. Macaulay. Representa-
tives of the policyholders: Hon. Raoul Dandurand and Mr. John
W. Ross.
S. H. EWING, T. B. MACAULAY,
Secretary. President.
FREDERICK G. COPE,
Secretary.
DIRECTORS AND OFFICERS, 1922
T. B. MACAULAY, F.I.A., F.A.S., President and Managing Director
S. H. EWING, Vice-President
ROBERT ADAIR, CHARLES R. HOSMER, W. M. BIRKS,
ABNER KINGMAN, HON. RAOUL DANDURAND, H. R. MACAULAY, M.D.
J. REDPATH DOUGALL, CARL RIORDON JOHN W. ROSS,
SIR HERBERT S. HOLT
ARTHUR B. WOOD, P.I.A., P.A.S., Actuary
FREDERICK G. COPE, Secretary E. A. MACNUT, Treasurer,
JAMES C. TORY, General Manager of Agencies
H. WARREN K. HALE, Comptroller J. A. EWING, K.C., Legal Adviser
W. F. HAMILTON, M.D., Consulting Medical Referee
A. B. COLVILLE, r.c., Counsel C. C. BIRCHARD, M.B., Cheif Medcial Officer
964
THE CANADIAN ANNUAL REVIEW
GENERAL STATEMENT
ASSETS
(The market values given are those fixed by the Dominion Insurance Dept.).
BONDS — Government, Municipal, Railway, Gas, Electric and
other bonds:.
Par Value $86,039,655.59
Ledger Value 76,015,938.62
Market Value 75,648,137.04
Carried out at Market Value $75,648,137.04
STOCKS — Preferred and Guaranteed Stocks:
Par Value $16,125,200.00
Ledger Value 13,974,228 . 66
Market Value 12,444,032 . 00
Carried out at Market Value 12,444,032.00
OTHBR STOCKS;
Par Value $4,143,100.00
Ledger Value 4,441,978. 13
Market Value 4,872,427.25
Carried out at Market Value $4,872,427.25
Loans on Real Estate, first mortgage 8,073,528.56
Real Estate, including Company's buildings 5,676,551 .52
Loans on Company's policies (secured by reserve on same) 16,567,115.10
Loans on bonds and stocks 1,815.98
Cash in banks and on hand 1,250,722. 13
Due from other Companies on re-insured for contracts death claims paid 5,600.00
Re-assurance Reserves on deposit with Ceding Company 294,668. 12
Outstanding premiums (net) $2,448,449.56
Deferred premiums (net) 696,297.67
3,144,747.23
Interest due 170,537.67
Interest accrued 1,208,442.52
Rents due and accrued 13,802 .21
Net Assets $129,372,127.33
LIABILITIES
Reserve on Life policies according to the British Offices OM.5.
Table with 3 H% interest on policies issued prior to Decem-
ber 31st, 1902, and 3 % on policies issued since that date $97,510,558.25
Reserves on Annuities according to the British Offices Select
Annuity Tables with 3^% interest 16,056,549.80
113,567,108.05
Less Reserves on policies re-assured 227,040.50
$113,340,067.55
Death Claims reported but not proved, or awaiting discharge 1,057,461 .64
Extra Reserve for unreported death claims 325,000.00
Present value of Death Claims payable by instalments 707,237.53
Matured Endowments awaiting discharge 196,216.50
Annuity Claims awaiting discharge 99,493.86
Claims on Supplementary Contracts, etc., awaiting discharge 1,134.90
Dividends to policy holders awaiting discharge 197,348 . 75
Profits allotted to Deferred Dividends Policies, issued on or after Jan. 1st, 1911 163,475.77
Profits payable during first three months of 1922 : 502,161 .91
Accumulated Credits on compound interest policies, etc 111,109.52
Premiums paid in advance 163,747.65
Sinking Fund deposited for maturing debentures, etc 102,365.81
Commissions, medical fees, taxes, etc., due or accrued 498,466.03
Reserve for Contingencies 600,000.00
Shareholders' account, including dividends due 1st January, 1922 72,930.81
Total Liabilities $1 18,138.218 . 23
Surplus to policyholders by the Company's standards as above 11,233,909. 10
Capital subscribed, $2,000,000; paid-up $ 850,000.00
Net Surplus over all Liabilities and capital stock 10,383,909 . 10
Surplus over all Liabilities, except capital stock $11,233,909. 10
$129,372,127.33
The net surplus over all liabilities and capital stock according to the Dominion Governmen t
Standard is $11,493,987.60.
THE LATE JOHN WOODBURN LANGMUIR
General Manager of the Toronto General Trusts Corporation, 1882-1915,
and Vice-President of the Company.
A LEADING CANADIAN INSTITUTION
40th ANNIVERSARY ADDRESSES AND REPORTS
OF THE
TORONTO GENERAL TRUSTS CORPORATION
The 40th Annual General Meeting of the Shareholders of
The Toronto General Trusts Corporation was held in Toronto, on
the 1st day of Feb., 1922. The President, Hon. Featherston Osier,
K.C., D.C.L., took the chair, and Mr. W. G. Watson, Assistant General
Manager, acted as Secretary of the meeting. Mr. A. D. Langmuir,
General Manager, submitted the Financial Statements, for the
year ended 31st December, 1921.
The 40th Annual Report of the Board of Direc-
Address by tors *s one which has probably been looked forward
the Hon. to by the Shareholders with hope, not untempered by
Featherston anxiety; with the former because they may have
KC D C L reasonaDly felt that confidence in the administration
President* ' °f the affairs of the Corporation, begotten of the
of the results of many years of prosperity; with the latter
Corporation, because the year through which we have just passed
has been, it may be said, the commencement of a
period of adjustments, or of tentative adjustments of business con-
ditions throughout the Dominion which, in so far as they may affect
this Corporation, have merited and received grave consideration.
It is therefore with no little gratification that the Directors find
themselves able to present to their Shareholders a report of the
satisfactory nature of the one which has just been laid before them
— a report showing a substantial increase in the business of the Cor-
poration in regard to the volume of assets under administration ; an
increase of net profits ; the maintenance of the usual dividend ; addi-
tions to the Reserve Funds and in again carrying forward a sub-
stantial balance to the credit of Profit and Loss. The figures I will
not take up time by repeating, as they are clearly set forth in the
statements which have for some time been in the hands of the
Shareholders, and will be elaborated and emphaszied in the re-
marks which you will presently hear from the General Manager.
What more particularly calls for notice and for commendation to
the attention of the Shareholders as indicative of the confidence
of the public is the continued increase in the special business of a
trust company, namely, the administration of estates.
During the year we have been called upon to regret the loss of
three of our valued colleagues, Senator Edwards of Ottawa; His
Honor the late Lieu tenant-Governor Lionel H. Clarke (whose death
in the prime of life in the midst of many useful activities, may in-
deed be spoken of as a public loss far outside the narrow circle of the
Board), and of Dr. John Hoskin in the fullness of years and honor,
[965]
966 THE CANADIAN ANNUAL REVIEW
after a long life of usefulness and of prolonged service to the Cor-
poration. Their places have been filled by the appointment of Mr.
C. S. Blackwell, Chairman of the Board of Trustees of the Toronto
General Hospital; Mr. Wilmot L. Matthews, and of the General
Manager, Mr. A. D. Langmuir, whose valued services as head of the
staff for many years, calls as in the case of his father, the late Mr.
J. W. Langmuir, our first General Manager, for this recognition.
During the year many circumstances pointed to the advisability
of obtaining increased accommodation for carrying on the work of
the Corporation in Winnipeg and Vancouver. The Directors took
advantage of the opportunity of obtaining satisfactory office build-
ings in these cities and negotiations for purchase of such premises
were entered into, and, subject to your approval, carried out.
You will be asked to pass the necessary By-Laws confirming the
action of the Directors in this respect. As appears from the state-
ment in your hands a considerable part of the sum voted by the
Shareholders at the last Annual Meeting for application in the dis-
cretion of your Directors towards charitable purposes, has been thus
expended. The Shareholders will, I hope, feel that at this time
reasonable calls of this nature should be responded to by this Cor-
poration as they are by others, and a Resolution or By- Law fixing
such sums as you may think proper for this purpose will be sub-
mitted to you.
The call of the Great War upon the young manhood of the
country was, as you are aware, nobly responded to by our own staff.
Some of these returned no more and remain forever in the foreign
countries where they fell. It has been thought right and fitting
that they should be commemorated on the walls of this Institution
by a Memorial Tablet, which will be unveiled at the conclusion of
this meeting when a few appropriate words will be spoken by Cap-
tain Rev. J. B. Paulin, M.C., of the 86th Battalion, Hamilton, at-
tached to the 9th Brigade, C.H.F., France.
As this Corporation has now completed the 40th
Addret by year of its exjstence, a short resume of its past his-
Langmuir, tory may be of interest. The Toronto General
Director and Trusts Company, the original title of the present
General Corporation, was incorporated under a special
of the^ Charter granted in 1872— just fifty years after the
Corporation, fi1"8^ trust company was established in the United
States — The Farmers' Loan and Trusts Company.
It was not, however, until 1882 — ten years later — that the Company
was formally organized and entered upon the active exercise of the
functions of a fiduciary in its many varying forms. The Hon.
Edward Blake was elected President; Mr. Edmund A. Meredith,
Vice- President, and Mr. J. W. Langmuir was appointed Manager.
The Company had an authorized capital of $1,000,000 and
commenced operations with a subscribed capital of $200,000, of
which $28,000 was paid up. Success attended the operations of the
Company from the start. The total amount of funds dealt with
TORONTO GENERAL TRUSTS CORPORATION — ANNUAL REPORT 967
during the first year, including the assets of Trust Estates and
Agencies, was $740,296.75. The gross profits for the first year
amounted to $8,488.72, and after deducting operating charges
amounting to $7,338.16, a balance of $1,150.56 was carried forward
to the credit of Profit and Loss account. The first dividend at the
rate of seven per cent, was declared in 1884. In 1899 an Act was
passed by the Ontario Legislature amalgamating The Toronto
General Trusts Company with the Trusts Corporation of Ontario.
The new company formed by the union took the name of The
Toronto General Trusts Corporation, having a paid-up capital of
$600,240.00.
In the year 1902 the Directors of the Corporation were led to
the conclusion, in view of the increase in the population and wealth
of Manitoba, that it would be well to extend the operations of the
Corporation to that Province. To that end negotiations were taken
up for the acquirement of the business of The Winnipeg General
Trusts Company and brought to a satisfactory conclusion, and an
office was opened in the City of Winnipeg under the supervision and
direction of a local Advisory Board. The field of operation of this
Branch was further extended in 1903 by having an Ordinance
passed permitting the Corporation to carry on business in the North-
west Territories, now the Province of Saskatchewan and Alberta.
Another important step was taken during that year in the
Province of Ontario by the acquisition of The Ottawa Trust &
Deposit Company, and the opening of a branch office of the Cor-
poration in the City of Ottawa. The final rounding out of the
Corporation's present organization was completed when a License
was obtained in 1905 permitting the carrying on of business in the
Province of British Columbia. In 1916 a branch office of the Cor-
poration was opened in the City of Vancouver.
Upon the retirement of the Hon. Edward Blake from the posi-
tion of President of the Corporation in 1897, he was succeeded in
that office by Dr. John Hoskin, K.C., LL.D., who held the position
until his resignation in 1909 on account of impaired health. Dr.
Hoskin was succeeded by the Hon. Featherston Osier, K.C., D.C.L.
The following synopsis in ten yearly periods of the financial progress
of the Corporation since its inception will be of interest : —
Year Capital Paid Up Reserve Fund Total Assets
1891 . $ 128,610.91 $ 161,000 6,326,580.47
1901 1,000,000.00 270,000 20,436,156.86
1911 1000000.00 700,000 45,086,659.99
1921 2,000,000.00 2,500,000 120,253,443.05
With respect to the Reserve Fund of $2,500,000, in this amount
is included $802,772.75 premium received in respect of issue of
$1,000,000 new stock of the Corporation, and $95,618.74 surplus in
connection with sale of the Corporation's old office premises situated
at the Corner of Yonge and Colborne Streets, Toronto. The success
which has attended the operations of the Corporations is largely
attributable to the high ideals of Mr. J. W. Langmuir, the founder
of the Corporation, as to the nature and sphere of operation and
968 THE CANADIAN ANNUAL REVIEW
policy of a trust company. Mr. Langmuir's services extended over
a period of thirty-three years, during which he filled the positions
of Managing Director or General Manager, and Vice- President of
the Corporation. No better evidence could be obtained of the
increasing confidence of the general public in the administration of
estates by a corporate trustee rather than an individual than is
shown in the greatly increasing volume of business entrusted to the
Corporation during the past forty years, as follows : —
For Ten Years ending (March 3 1st), 1892 ... $ 9,111,896
For Ten Years ending 1901 28,098,895
For Ten Years ending 1911 43,781,191
For Ten Years ending 1921 124,203,902
Of the original eighteen Charter Directors, Mr. J. G. Scott, K.C.,
is the sole remaining survivor on our Board to-day, and of the office
staff there are two representatives in the service of the Corpora-
tion, the present General Manager and Mr. James Davey, Manager
of the Ottawa Branch office of the Corporation.
Coming now to the consideration of the year's operations just
completed, you will realize with conditions such as we have been
experiencing in Canada, in financial and business affairs, during
the last couple of years, the responsibilities and anxieties attendant
upon the exercise of a proper judgment in administering the business
connected with the winding up of estates as well as the investment
of their funds in satisfactory securities, has called for such expert
qualifications and efficiency in detail as could only be obtained
through the medium of a well organized trust company properly
equipped and with capable and experienced men at the head of all
departments. In this connection it has also been of paramount
importance, having regard to these manifold duties, many of a very
complex character, the control and liquidation of securities and
assets of every conceivable description, as well as the investment of
funds and distribution of the proceeds of realizations, that the sys-
tem of control, supervision, checking and audit should be nearly
perfect as it is humanly possible to be. I believe in the conduct of
the affairs of this Corporation that your Directors have developed
such a system.
Apart from the general control of the Board of Directors and
Advisory Boards at the branch offices, who consider and pass upon
all new business taken over by the Corporation and the investment
of its funds, as well as considering all other matters of importance
brought to their attention by the management, there is the Inspec-
tion Committee of the Board of Directors, who report quarterly to
the Directors and annually to the Shareholders. This Committee,
in the discharge of its duties, becomes cognizant of every act of the
Board of Directors, as recorded in the Minute Book. It has to see
every mortgage and debenture that has been acquired by order of
the Board, in order that it may ascertain whether the conditions
under which the same were authorized have been carried out, and
finally, to see that such securities are registered or earmarked in the
books of the Corporation as the property of the estate or trust to
which they belong.
TORONTO GENERAL TRUSTS CORPORATION — ANNUAL REPORT 969
In addition to this supervision by the Inspection Committee,
there is of course the continuous examination of securities and check-
ing up of accounts by your Auditors appointed at the Annual
Meeting of Shareholders. One might conclude that this supervision
was sufficiently effective, but there is still another check upon the
Corporation's management, and it is that of the Courts. Any bene-
ficiary of an estate may at any time require the accounts of an estate
in which they may be interested to be brought into Court, and there
audited by the Judge or Court officer. I am sure a knowledge of this
information cannot but give the fullest confidence, not only to
Shareholders, but also to the public who are so increasingly en-
trusting the management of their affairs to this Corporation, that
their interests are being most thoroughly and properly safeguarded.
Although we have been working under very abnormal condi-
tions during the past year, more so than at any time in the experience
of the Corporation, you will be pleased to observe, notwithstanding
the large amounts that are distributed annually in closing out
Estates, Trusts and Agencies, that our assets have been increased
during the year by $6,491, 1 18.87, and now stand at $120,253,443.05.
The business entrusted to the Corporation has been well attended
to in all departments, and it is with no little satisfaction that the
management are able to record this fact. It would hardly have
been possible to have realized such satisfactory results had we not
been able to consult weeky a Board of Directors whose combined
wisdom and experience is of invaluable assistance. The new Trusts,
Estates and Agency business assumed by the Corporation during
the year amounted to the sum of $17,897,328.53, being somewhat
less than in 1920, but nevertheless a very handsome volume.
The Corporation's investment in office premises remains prac-
tically the same as previously recorded. In this connection, how-
ever, I should inform you that your Directors, after most careful
consideration, and looking to the future extension and require-
ments of our Western business, decided that we should purchase
suitable office premises for ourselves in the City of Winnipeg. We
have now completed arrangements with the Bank of Nova Scotia
for the acquirement of the property at one time occupied by the
Bank of Ottawa, on the east side of Main Street, close to the corner
of Portage Avenue. The site is an excellent one, and the building
is suitable in every way for the purposes of the Corporation. You
will therefore be asked, in order to comply with the requirements of
The Loan and Trust Companies' Act, to pass a By-Law approving
and confirming this tranasction, as well as the purchase made in
1920 of office premises for our Vancouver Branch.
The other item of real estate in our Balance Sheet is that
amounting to $100,390.52, representing properties which have come
into the possession of the Corporation through foreclosure or Power
of Sale proceedings. We believe that our Book claim is fully
secured, full provision for any anticipated loss having been amply
provided for. The new issue of Capital Stock in 1920 has been fully
970 THE CANADIAN ANNUAL REVIEW
paid, and our Capital now stands at $2,000,000 and the Reserve
Fund amounts to $2,500,000.
Respecting the Guaranteed Trusts account shown in the Assets
and Liabilities statement, this is a very important part of our busi-
ness; it represents moneys received by the Corporation from In-
vestors, for which we undertake to guarantee the payment of interest
thereon at a fixed rate as well as the return of the principal at the
end of the period of investment contracted for. The moneys are
invested in first mortgages, or in other Trustee securities. These
securities are earmarked in the books of the Corporation as the
property of the Investor, so that parties entrusting their funds to the
Corporation for investment on this account, have not only the in-
vestments as security, but also the guarantee of the Corporation
in addition. It is an investment of the highest order and absolutely
safe. It is accepted under the Trustee Act as a proper security for
the investment of Trust funds.
For several years past the very high rates of interest obtainable
on Government, Provincial and high-grade Municipal Bonds or
Debentures have made it difficult for Trust Companies to procure
any considerable volume of guaranteed funds, or for Loan Com-
panies to market their debentures. This situation, however, has
been changing during the past few months, and particularly since
the 1st of January, owing to the continuous rise in prices of Govern-
ment bonds and Municipal securities, so that we are now in a posi-
tion to offer a more favorable rate for guaranteed funds than can
be had through the purchase of securities such as I have indicated.
We are therefore hopeful of being able to show a considerable ex-
pansion this year in the funds held on Guaranteed Trusts account.
Regarding the profits realized from the year's operation, I feel
sure the results obtained will be found satisfactory. You will ob-
serve that we show in our statement of Profit and Loss not only the
gross profits but also the cost of management as well. I do not
know that there is any particular advantage or satisfaction to the
Shareholders or the public in giving this information except that it
is an indication that the gross profits of the Corporation, having
regard to the character of business under its control and manage-
ment, are very moderate when compared with the results derived
by other financial institutions with a similar volume of business.
As a general rule the investments made by the Corporation
are confined to investments coming within the terms of the Trustee
Act, namely — Dominion and Provincial Government securities,
Municipal debentures and first mortgages on real estate.
There are exceptions, of course, when the Will or Trust docu-
ment under which we receive our authority provided for invest-
ments being made in securities outside the restrictions of this Act
or provides for the retention of investments made by the Testator.
In such cases we must exercise a most careful supervision. General-
ly speaking, however, we are confined to Trustee Investments.
Consequently we have invested in first mortgages to the extent of
TORONTO GENERAL TRUSTS CORPORATION — ANNUAL REPORT 971
$23,107,346.84, and in Government and Municipal debentures
$16,602,777.54, or a total of $39,710,124.38. I am pleased to inform
you that we have no arrears of interest whatever in respect of any
of our debenture investments, and with regard to the mortgage
investments located in Ontario, amounting to over $16,000,000, we
have up to the present time collected 99-37 per cent, of the total
interest carried forward from 1920 and charged during 1921. Of
the remaining mortgage investments of over $7,100,000 secured on
Northwest city and farm properties, less than "$100, 000 of interest is
over twelve months in arrears, and the fullest provision for any loss
that might be incurred has been provided for.
The past year has been a very unsatisfactory one for the farmer
in the West. It seemed as if everything had combined to his dis-
advantage. In the first place, the season was a dry one, with ex-
cessive heat and absence of rain in many parts of the country ; this
was followed by rust and grasshoppers, particularly in the Southern
districts. Previous to the harvest, however, conditions were not
absolutely bad. While the crop was very small in many districts,
it was thought that even in the worst districts it would not be a
complete failure. Those farmers who were able to thresh very early
did not do so badly on the whole, that is if they sold their grain at
once. Unfortunately, the great majority of them were not able to
get threshed early, and almost immediately after the grain was cut
the weather broke ; rains were frequent and heavy, so much so that
before the grain could be threshed, in the majority of cases it was
badly spoiled, reducing the grade very seriously; then on top of all
this came the slump in prices. The consequence is that collections
on account of this year's interest are considerably below our usual
experience, and we will be required to carry over quite a number of
our farmer borrowers.
The average rate of interest derived from mortgages situate in
Ontario is 6-73%, as compared with 6-52% in 1920, and 6-42% in
1919. From mortgages taken in the Northwest Provinces the
average interest return is 7 • 73%.
Before closing I would like to make one or two remarks inci-
dental to the administration of Estates and Trusts. A Trust Com-
pany, from the very nature of its office, meets with many problems
in the exercise of its duties. Its responsibilities are two-fold ; to the
Testator who has imposed upon it a solemn trust to see that his
purposes as expressed in his Will, are faithfully executed; to the
beneficiaries of his estate to see that their interests are safeguarded.
Beneficiaries may sometimes feel inclined to criticize the policy
of a Trust Company in the administration of an estate, especially
with regard to the payment over of Trust funds, but the circum-
stances are often such that owing to the nature of the assets or the
terms of the Will under which the estate has to be administered, a
Trust Company is not always in a position to pay over moneys to
beneficiaries. No Trust Company, and certainly not this Corpora-
tion will withhold payment of one dollar of Estate funds to which
972 THE CANADIAN ANNUAL REVIEW
any beneficiary may be entitled any longer than it is necessary to do
so, having regard to the other claims against the estate and the
amount of funds available.
In all matters arising out of the management of estates, the
interests of the beneficiaries are treated by this Corporation as mat-
ters of first importance. The amount of our Capital funds which
have been advanced to estates to protect these interests is conclusive
enough evidence that such is our policy. We aim to administer
estates with fairness, impartiality and with promptness, and the
extent of our business to-day is sufficient proof that our efforts have
been fully appreciated. In conclusion, I desire to express my appre-
ciation of the work done by the officers and staff of the Corporation
at its Head Office and Branches during the past year, and for the
efficient manner in which they have discharged their duties.
In rising to second the motion for the adoption
Remarks of the Report, I may say I did not intend to make a
by Major- speech. It is quite unnecessary to do so in view of
the very satisfactory reports which have been sub-
mitted to you and the able manner in which these
reports have been discussed by the President and
Vice- * General Manager. The only thing that occurs to me
President to say is that we are interested here in a thoroughly
of the genuine and legitimate trust company. There are
Corporation, trust companies and trust companies, and some are
called trust companies with a motive of using a name
that will attract business, while business is carried on which does not
come strictly within the law or intention of the law relating to
"Trust Companies."
This leads me to think back a number of years when I was a
junior member of the Government of which Sir Oliver Mowat was
Premier, being Provincial Secretary of that Government when this
Company was about the only trust company in the country. Sir
Oliver was often accused of being very conservative in many ways.
He was strongly impressed with the advisability of not allowing
trust companies to grow up like mushrooms all over the Province,
and only allowing them to increase in number as the growth in
wealth and the development of the Province warranted.
Now the object I had in making these remarks at all was to call
your attention to the fact that this, is and always has been, an
absolutely genuine trust company. I have not seen, since I have
been connected with it, the first trace or indication of anything of a
suspicious nature, savouring of speculation or an effort to make
money by special means. The fact that this Corporation's business
is so genuinely that of a trust company is becoming well known
throughout the country, and this accounts for the ever-increasing; —
rapidly increasing — numbers of those who are naming it to admin-
ister their estates. The confidence of the community, step by step,
has been growing as rapidly as its business and as the character of
its business become known.
TORONTO GENERAL TRUSTS CORPORATION — ANNUAL REPORT 973
ELECTION OF OFFICERS.
The following Shareholders were appointed Directors for the
ensuing year: — Hon. Featherston Osier, K.C., D.C.L.; Hamilton
Cassels, K.C., LL.D.; Major-Gen. Sir John M. Gibson, K.C.M.G.,
K.C., LL.D.; Wellington Francis, K.C.; Hon. A. C. Hardy, Lieut.-Col.
R. W. Leonard, J. Bruce Macdonald, Hon. Sir Daniel H. McMillan,
K.C.M.G.; Lieut.-Col. John F. Michie, J. G. Scott, K.C.; Sir Edmund
B. Osier, Sir Edmund Walker, c.v.o., LL.D., D.C.L.; E. C. Whitney,
E. T. Malone, K.C.; H. H. Williams, Robert Hobson, Thomas
Bradshaw, F.I.A.; C. S. Blackwell, W. L. Matthews, A. D. Langmuir.
At a subsequent meeting of the Directors the following officers were
elected: — President, Hon. Featherston Osier, K.C., D.C.L.,; President
and Vice- Presidents, Hamilton Cassels, K.C., LL.D.; Major-Gen. Sir
John M. Gibson, K.C.M.G., K.C., LL.D.
The Inspection Committee was re-elected, namely : — Hamilton
Cassels, K.C., LL.D., Chairman; Major-Gen. Sir John M. Gibson,
K.C.M.G., K.C., LL.D., and Wellington Francis, K.C. ; the following
members were elected to the Advisory Boards at Ottawa, Winnipeg
and Vancouver:
Ottawa — W. D. Hogg, K.C., Chairman; Sir George Burn,
Nelson D. Porter, Alexander Maclaren and C. Jackson Booth.
Winnipeg — Hon. Sir Daniel H. McMillan, K.C.M.G., Chairman;
H. H. Smith, W. H. Cross, Frederick T. Griffin and Frank L. Patton.
Vancouver — A. H. Macneill, K.C., Chairman; Eric W. Hamber,
F. B. Pemberton and R. P. Butchart.
UNVEILING OF MEMORIAL TABLET.
At the close of the meeting, the Shareholders present, the
Officers and Staff of the Corporation, and a number of friends ad-
journed to the main floor of the Head Office, where an impressive
ceremony took place in the unveiling of a bronze tablet to the mem-
ory of the members of the staff who fell in the Great War. Prior to
the unveiling of the tablet, Hon. Featherston Osier, K.C., D.C.L.,
the President delivered a brief address, in which he said : —
"In the Board Room upstairs is a tablet which has been there
for some time. It commemorates the names of our staff here, in
Ottawa, and at Winnipeg, who answered the call of duty and went
overseas to the War. Some of these never returned, and to them
the Corporation thinks it is right and fitting that a special memorial
tablet should be erected.
We think for a moment of the lives of these lads — for some of
them were little more than of service age. We think of them in the
narrow circle of homes and schools, and gradually passing into the
wider one of professional and business life, looking forward to a
happy manhood passed in their native land and perhaps to a serene
old age, and then suddenly snatched into the vortex of the Great
World War. They are mourned. They always will be mourned,
but mourned with this feeling, that their lives have not been given in
vain. They were a unit in the armies of France, England and Italy.
974 THE CANADIAN ANNUAL REVIEW
I put France first advisedly, for France bore the brunt of the terrible
fighting, of these years. The ashes of most of them lie in a foreign
land, each forming a little spot of its native soil. We dedicate then
memorial to their memory/
The President then called on the Rev. Captain J. B. Paulin,
M.C., who, in conclusion of an eloquent tribute to the men who had
fallen, said: — "We dedicate this memorial tablet with grateful,
proud memory to the men who went from this place and have not
returned; who gave up their lives for the good of the world; who
gave up then* future that we might have ours." This address was
followed with a dedicatory prayer, after which the President un-
veiled the tablet. The ceremony was followed by a minute of
solemn stillness, and the proceedings terminated with the singing
of the National Anthem.
TORONTO GENERAL TRUSTS CORPORATION — ANNUAL REPORT 975
THE TORONTO GENERAL TRUST CORPORATION
STATEMENT FOR THE YEAR OF 31st DECEMBER, 1921
ASSETS
CAPITAL ACCOUNT:
Office Premises and Safe Deposit Vaults at Toronto, Ottawa and
Vancouver $825,000.00
Rents 6,265.67
Deposit paid on account of purchase of new Office Premises at
Winnipeg, of which possession will be had in 1922 1,000.00
Real Estate held for sale , 100,390. 52
MORTGAGBS:
Principal $2,490,097 . 75
Interest due and accrued 102,609.42
$ 2,592,707. 17
Loans on Stocks and Bonds 7,547.20
Dominion of Canada and Provinces of Canada Securities 555,732 . 07
Canadian Municipalities' Debentures 93,290.76
Other Bonds or Debentures 47,244.55
Loans or Advances to Trust Estates and Guaranteed Mortgage
Accounts under administration by the Corporation 554,125.00
Cash in Chartered Banks 131,298.78
Cash on hand 275 . 00
Other Assets 481.07
$4,915,357.79
GUARANTEED TRUSTS ACCOUNT:
MORTGAGES:
Principal $6,603,239.25
Interest due and accrued 365,185.56
$6,968,424.81
Canadian Municipalities' Debentures 700,192.36
Cash in Chartered Banks 72,722.03
ESTATES, TRUSTS AND AGENCIES ACCOUNT:
Mortgages on Real Estate $14,147,837.61
Government and Municipal Debentures 15,212,552.75
Stocks and Bonds 1,352,645-38
Loans on Debentures, Stocks and Bonds 1,321,264.68
Sundry Assets 5,682 . 79
Cash on hand and in Chartered Banks 1,561,388 . 15
$33,601,371.36
Original Assets, including Real Estate, Mortgages, Debentures,
Stocks and Bonds at inventory value 73,995,374.70
$120,253,443.05
LIABILITIES
CAPITAL ACCOUNTS:
Capital Stock subscribed and fully paid $2,000,000.00
Reserve Fund 2,500,000.00
$ 4,500,000.00
Contingent Reserve Fund 50,000.00
Dividend No. 102, due January 2nd, 1922 59,997.73
Appropriation for Federal Income Tax 29,981.61
Amount provided towards cost of new Office premises,
Winnipeg 75,000.00
"*- 200-378-45 ,4,915,357.79
GUARANTEED TRUSTS ACCOUNT:
Guaranteed Trust Funds for investment 7,741,339.20
ESTATES, TRUSTS AND AGENCIES ACCOUNT:
Trust Funds for Investment or Distribution 33,601,371 .36
Inventory value of Original Assets of Estates and Agencies
under administration by the Corporation 73,995,374.70
107,596,746.06
$120253.443.05
SUPPLEMENT
Educational Interests of Canada
32
THE DEPARTMENT OF EDUCATION
OF
THE PROVINCE OF ONTARIO
187&-1922
Organized and Placed Under the Control of a Minister of the
Crown by Act of Parliament in 1876.
Development of the Educational System in Ontario:
1874 1920
Population of Ontario 1,700,000 2,900,000
Number of Schools: —
Elementary and Secondary 4,866 7,113
Number of Pupils Enrolled 472,382 643,726
Number of Teachers 3,887 15,522
Total Expenditures $3,151,926 $30,626,435
Distinctive Features of the Ontario System:
(1) Municipal Control, regulated by the Provincial Department but affording
a large measure of local self-government.
(2) A National System permitting, however, in certain cases Separate De-
nominational Schools subject to uniform Standards of Efficiency with other
Elementary Schools.
(3) A distinction between the scope of Primary and Secondary Schools and
the Universities — sufficiently marked to avoid over-lapping and to permit of in-
dependence but all forming one complete system.
(4) Specialization in Technical and Industrial Schools established under the
Ontario Industrial Education Act and maintaining 64 Day and Evening Schools
with 31,823 students of whom 10,000 were born in countries other than Canada.
(5) The 5,602 Rural School Libraries and 450 Association and Free Public
Libraries available for the use of the Pupils.
(6) Provisions to encourage the Physical Examination of every pupil by
School Nurses and Medical Officers, and daily Physical Training under qualified
Instructors with a well-organized Cadet System.
(7) The Creation and development of Spirit of a National and Empire senti-
ment as a basis of constructive Citizenship.
By Act of Parliament a free education in the Provincial Schools
is provided for all below the age of 21 years; the compulsory at-
tendance, in whole or for part time, of children up to the age of 18
years; the Educational Department is entrusted with the adminis-
tration of the School Law. A Standard Matriculation examination
is required for entry into the Universities and Professions which
continue the courses of study outlined in the curricula of the Ele-
mentary and Secondary schools of the Province.
1978]
THE CANADIAN CLUB MOVEMENT.
From Annual Proceedings, Association of Canadian Clubs.
December 6th, 1922, will mark the 30th anniversary* of the
projection of the Canadian Club, for it was on the evening of
the sixth of December, in the year 1892, that six young men met
on the invitation of Charles R. McCullough in his office in the
Commercial Centre Building in Hamilton, Ontario, to consider
ways and means of establishing a society that would interest
young men and develop them as Canadian citizens. At this
little meeting there were assembled James Ferres, Chairman;
Charles R. McCullough (now Lt.-Colonel), Secretary; W. San-
ford Evans, Henry Carpenter, George D. Fearman (now Lt.-
Colonel) and the late John T. Hall. It was proposed by one of
these gentlemen that an association be established on Mock
Parliament lines ; another that it conform to Debating Club
rules, etc. Finally the acting Secretary suggested that the cen-
tral idea of the proposed association be Love of Country and
about this would gather all the other advantages, attaching to
literary and debating organizations. There and then the Cana-
dian Club had its birth.
The little band of founders immediately proceeded to draft
a letter inviting their fellow-townsmen to assemble later for the
purpose of discussing the matter and of furthering the project
in view. By February 1st, 1893, such progress had been made
that a representative gathering met in the rooms of the Hamil-
ton Association, in the Public Library Building, when the follow-
ing Resolution was introduced by Mr. McCullough, seconded by
Mr. Evans, and carried with enthusiasm
"Recognizing the deep importance to Canada of the culti-
vation of a spirit of patriotism in the hearts of her people (and
particularly of the young men upon whom will rest the duties
of the future), and in view of the fact that only under the stimu-
lus of an active patriotism has any nation become great, it is,
in the opinion of this meeting, a fit and proper time to take
definite steps, however humble, to deepen and widen the regard
of Canadians for the land of their birth or adoption, and to in-
crease their interest in matters affecting the welfare of their
*To be celebrated by the Association at its annual meeting in Hamilton, September
llth and 12th, 1922.
[979]
THE CANADIAN CLUB MOVEMENT
country. Be it therefore resolved that this meeting proceed
to the organization of a Society to be known as The Canadian
Club, having for its objects the encouragement of the study of
the history, literature and resources of Canada, the recognition
of native worth and talent and the fostering of a patriotic Cana-
dian sentiment.
"Be it further resolved that the membership shall be open
to all Canadians who may be in sympathy with the patriotic and
educative aims of the Society, apart from any designs of po-
litical partizanship."
It was hopefully stated that such Clubs might be extended
to all parts of Canada. To-day there are nearly one hundred of
these "Universities of the People," as the late Rt. Hon. Lord
Bryce, O.M., has termed them, in the several Provinces of the
Dominion, and a score or more in the neighbouring Republic,
and it is altogether probable that the Founder's wish may be
realized within a few pears — that of seeing every self-governing
portion of the Empire with its National Club, and, finally, of
these uniting in a great Imperial Council of Clubs called together
periodically to discuss questions that have not reached the con-
tentious arena of party politics.
THE CANADIAN CLUB IDEA.
THE LATE EARY GREY, K.G., WHEN GOVERNOR-GENERAL OF CANADA,
"It (The Canadian Club) carries the badge of no party. It
wears the livery of no sect. It is as free as the fresh air that
comes down to us as an invigorating tonic from the slopes of
the Laurentian Mountains. Its sole and only object is to pro-
mote the well-being of the Canadian nation. The fact that every
week during the winter the men and women of your Canadian
cities and towns are addressed by the best speaker that can be
obtained who has a disinterested message to deliver, is a security,
the value of which can hardly be over-estimated, guarding you
against the curse of any long continuance of sectional and Pro-
vincial narrowness."
THE TORONTO GLOBE, MAY 15, 1912.
"The rapid spread of Canadian Clubs in the West is one of
the most significant signs of the times. The Church, the School,
and the Canadian Club each has its own place in the making of
good citizens."
THE RT. HON. JAMES VISCOUNT BRYCE, O.M.
When British Ambassador at Washington. Hon. Member Canadian Club of Hamilton.
"The Canadian Clubs have struck me during the last few
years as being an institution of the utmost value for Canada,
tending to unite all patriotic citizens in a common sympathy and
a common action for those national interests which transcend
all party affiliations.
THE CANADIAN CLUB MOVEMENT
The earnest, energetic and progressive spirit with which
the Canadian Clubs have worked and are preparing all over the
country is the best augury for the future of Canada."
SIR J. GEORGES GARNEAU, Knt., LL.D., THEN MAYOR OF QUEBEC.
"The splendid movement and good work carried out by the
Canadian Clubs individually, should find its scope very much en-
larged by the unity of purpose and direction which can be more
effectively brought about by federation."
THE LATE LORD STRATHCONA AND MOUNT ROYAL.
"Your Club (Canadian Club of Montreal) and the other
clubs are doing a great work and you have taken a great step in
joining together. It (The Association of Canadian Clubs) will
give you a greater strength and power for good which I am
sure you will use to the utmost, spreading the inculcation of
that sentiment of patriotism which is so inherent in Canadians."
THE LATE SIR GEORGE W. ROSS, K.C.M.G., WHEN PRIME MINISTER OF
ONTARIO.
"The Canadian Club is a factor that will materially assist in
removing this stigma (lack of appreciation of the dignity due
the name of Canada). Manly confidence in our powers is es-
sential to our national life."
THE RT. HON. ARTHUR J. BALFOUR, O.M., M.P., KXX,
Now Earl of Balfour. Hon. Member Canadian Club of Hamilton.
"The people of Canada and the other Overseas Dominions
must have and will have their own feelings of nationality. Every
Canadian ought to want to feel that Canada has got her own
principles and development and future. Do not let us discourage
that local patriotism. Let them cultivate their own feeling of
nationality: Canada for the Canadians, Australia for the Aus-
tralians, but the whole for the Empire."
THE LATE SIR PIERRE EVARISTE LE BLANC, K.C.M.G., WHEN LIEUTENANT-
GOVERNOR OF QUEBEC.
"It is my earnest hope that a Spirit of Reconciliation and
Unity may henceforth animate all the peoples of our beloved
country."
How to Form a Canadian Club: An interesting and instruc-
tive pamphlet on the procedure to be followed in organizing a
Canadian Club (Men's or Women's) in a community will be
sent to any address. Apply to :
Royal Bank, Hamilton, Ont.
ALLAN R. LANCEFIELD,
Hon. Secretary Association of Canadian Clubs.
PHYSICS BUILDING UNIVERSITY OF TORONTO
0f Stenmto
(The Provincial University of Ontario)
Faculities of Arts, Medicine, Applied Science and Engineer-
ing, Education, Forestry, Music. Departments of
Household Science, Social Service, Public Health,
Public Health Nursing.
Arts Colleges: — University College, Victoria College,
Trinity College, St. Michael's College.
Theological Colleges :— Knox College, Wycliffe College.
Affiliated Institutions: — Royal College of Dental Surgeons,
Ontario Agricultural College, Ontario College' of
Education, Osgoode Hall (the Law School), Ontario
Veterinary College, Ontario College of Pharmacy,
Toronto Conservatory of Music, Toronto General
Hospital, Royal Ontario Museum.
Thirty-seven buildings, exclusive of federated and
affiliated institutions. Approximately 5,500 students apart
from those in affiliated institutions. Hart House, social
and athletic building for men. Residences for men and
women.
For general information and copies of calendars, write
the Registrar, University of Toronto, or the Secretaries of
Colleges or Faculties.
cH
Snronln, (Eatraba
A CANADIAN SCHOOL
for
BOYS
Upper School
Lower School
Boarders
Day Boys
Situation — In North Rosedale, an attractive suburb of To-
ronto. In close touch with the unusual educational
facilities of Canada's Educational Centre.
Organization — The College is maintained as an Educational
Trust under a strong Board of Governors. It is not
conducted for profit.
Object — -The moral, mental and physical development of the
boys entrusted to the care of the College.
Scope of Work — Boys prepared for the Universities, the
Royal Military College, or Business. Boys admitted
to the Lower School from the age of eig'ht years and up.
Lower School boys enter Upper School without a break
in the continuity of their school life.
Staff — Seventeen University Graduates and Specialists in ad-
dition to the Headmaster.
Headmaster — Rev. D. Bruce Macdonald, M.A., IJ..D.
Calendar sent on application.
UNIVERSITY OF SASKATCHEWAN
Chancellor
President
SIR FREDERICK HAULTAIN
WALTER C. MURRAY, M,.D.
THIS University, founded in 1907, supported and con-
trolled by the Province, was the first in Canada to
make provision on the same campus for instruction
in Agriculture as well as in Arts and Science, and the
usual professional subjects.
The University offers courses in Arts, Science,
Agriculture, Law, Engineering, Pharmacy and Account-
ing, and prepares students for advanced standing in
Medicine and Dentistry. University Scholarships
equivalent to free tuition are open to qualified students.
For fuller information, apply to
A. R. WEIR, Registrar,
SASKATOON.
A HANDY WORK OF REFERENICl
$11.00 THE SET
POST-PAID
$13.00 WITH
NEAT DESK
BOOK-RACK
THE NEW AGE ENCYCLOPAEDIA
Edited by Sir Edward Parrott, M.A., LL.D., assisted by a large
staff of experts.
This is the only post-war ENCYCLOPAEDIA on the market, and
is invaluable to all thinking men and women. The ten compact volumes
—size about W by 6^2" — contain all the most up-to-date information.
It is specially strong in geography, travel, history, biography, science,
invention, etc. The volumes are well bound in cloth, and are printed in
clear type on good paper. The complete set occupies little more than 12
inches linear space.
This ENCYCLOPAEDIA should be in every office, school and home.
THOMAS NELSON & SONS, Limited
77 WELLINGTON ST. WEST, TORONTO
Lower Canada College
MONTREAL, QUE.
Headmaster : C. S. FOSBERY, M. A.
El
DAY BOYS AND BOARDERS
Preparatory Juniorand
Senior Departments
Preparation for McGill
R. M. C. and R. N. C.
PHYSICAL TRAINING, MANUAL TRAINING, MUSIC, DRAWING
Made-in-Hamilton Quarterly
TWELFTH YEAR
Devoted to the Sales at Home and Abroad
of the Products of over 500 varied Indus-
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munity of the City of Hamilton. Officially
endorsed.
The Hamilton Trade Index of this Publica-
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one issued. Send for a
sample copy, using busi-
ness or professional let-
ter-head.
Address :
Charles R. McCullough & Co,
Publishers
22 GORE STREET
HAMILTON - ONT.
"In my judgment Hamilton has
only begun to enter into the
promised land of her heritage.
With the type of men and women
that perform their daily round
of labour in every department of
the commercial, industrial, pro-
fessional and social life of this
great city, and who with patient
endeavour point to high ideals and
display the larger vision, still
greater things await you."
R. S. GOURLAY,
Past President,
Canadian Manufacturers Assn.
THE
ANNUAL FINANCIAL REVIEW
THE RECOGNIZED AUTHORITY ON
CANADIAN SECURITIES
22nd 1922 EDITION
Edited by W. R. HOUSTON
THE ANNUAL FINANCIAL REVIEW is a carefully revised sum-
mary of facts regarding securities listed on the Montreal and Toronto
Stock Exchanges, and of other prominent Canadian companies.
It includes the Current Annual Statements of Companies; the high-
est and lowest prices of stocks and bonds on both Exchanges for each
month for ten years; number of shares sold each month for the past
fifteen months; rate of dividends paid for past years, and other im-
portant items in the history of the different Companies, such as increases
in capital stock, particulars of franchises, when bonds are redeemable,
dividends payable, together with a mass of other facts.
It comprises 806 pages of solid information, well printed in a clear
and concise manner, and is neatly bound in full cloth. The work is in-
valuable, not only to financial institutions, but also to the general invest-
ing public.
Price $10.00 PER COPY
HOUSTONS STANDARD PUBLICATIONS
TORONTO STOCK EXCHANGE BLDG.
84 BAY STREET TORONTO, CANADA
London England
EFFINGHAM WILSON, 16 Copthall Ave., W. C. 2
1923 HEATONS ANNUAL 1923
Commercial Handbook of Canada
19th EDITION READY AT CHRISTMAS
A NEW DEVELOPMENT
THE DOMINION READY REFERENCE
PROVINCIAL READY REFERENCES
THE BOARDS OF TRADE REGISTER
Complete Economic Information.
Revision by Officials and Experts.
Clear, Concise Paragraphs.
Strict Alphabetical Arrangement.
No Index Necessary.
HEATON'S ANNUAL also contains its standing features all revised
to date— The Official Directory; Postal and Cable Information; The
Canadian Education Register; Provincial Maps; Directories of Trust
Companies, Banks, Insurance Companies, Steamships, Solicitors, Customs
Brokers, Leading Warehouses, etc.
Heaton's Annual is the Standard Authority on the Canadian Customs
Tariff and Regulations.
Price— Two dollars and fifty cents
—PUBLISHED BY—
HEATONS AGENCY
32 CHURCH STREET, TORONTO
For Sale by All Leading Booksellers in Canada, Great Britain
and the United States.
The Most Complete Canadian Reference Book Ever Published.
THE CANADIAN ANNUAL REVIEW
OF PUBLIC AFFAIRS
21st Year By 900 Pages
J. CASTELL HOPKINS, *.s.s., *.R.G.S., F.R.S.I,.
Author of
The Story of the Dominion ; History of South Africa ; The Progress of
Canada in the 19th Century ; Queen Victoria, Her Life and Reign ;
Canada at War; Ontario in the War; and etc.
The Standard Work of Historical Reference on the Dominion of
Canada ; Its Interests at Home and Relations Abroad
HISTORY POLITICS FINANCE INDUSTRY TRANSPORTATION
THE CANADIAN ANNUAL REVIEW
Is the only Publication of its kind in the World.
Is not a mere Compendium of Facts, but, as The New York
Tribune has said — "A great Year-Book."
Commentators and Students of affairs have declared it abso-
solutely Authoritative, Concise, Comprehensive, Logical,
Broad and Unbiased.
Is the Chief Source of Information for Newspapers, Writers,
Speakers, Publicists, Financiers, Manufacturers, on any
matter pertaining to Canada.
Is the most frequently consulted Book in Canadian Refer-
ence Libraries.
"THE CANADIAN ANNUAL REVIEW is the greatest treasury of
accurate information and the most able and comprehensive history of
important events published in the English language." — The Very Rev.
W. R. Harris, D.D., LL.D., D.LITT.
"The accuracy of the Review is never challenged ; it is the recognized
authority." — Canadian "Liberal Monthly."
Illustrated Price $8.00
The Canadian Review Company, Ltd.
2 College St. - - Toronto
CANADIAN EDUCATIONAL INSTITUTIONS
McGill University
Montreal
President, Sir Arthur W. Currie,
G.C.M.G., LL.D.
Arts, Science, Medicine, Law, etc.
Incorporated 1821
University of Manitoba
Winnipeg
President, James A. MacLean,
Ph.D., LIv.D., D.C.I,.
Arts, Science, Medicine, Engineering
Incorporated 1877
University of British Columbia
Vancouver
President, L. S. Klinck, M.S.A., D.SC.
Arts, Science, Agriculture
Opened 1915
University of New Brunswick
Fredericton
President, C. C. Jones, I.L.D., ph.D.
Arts, Science, Law
Established 1859
Laval University
Quebec
Chancellor, H. E. Card. L. N. Begin
Theology, Law, Medicine, Arts
Established 1852
McMaster University
Toronto
Chancellor, A. L. McCrimmon,
M.A., LI..D.
Arts, Theology
Incorporated 1887
Queen's University
Kingston
Principal and Vice-Chancellor,
Rev. R. Bruce Taylor, M.A., D.D.
Arts, Applied Science, Medicine
Founded 1841
Western University
London
Chancellor, Hon. William J. Roche,
M.D., LL.D., M.P.P.
Arts, Medicine
Established 1878
University of Alberta
Edmonton
President, Henry M. Tory, M.A.,
D.SC., LL.D., P.R.S.C.
Arts, Science, Medicine, Law, Agriculture
Incorporated 1906
Mount Allison University
Sackville, N.B.
President, Rev. B. C. Borden, D.D.
Arts, Science, Theology
Founded 1858
Acadia University
Wolfville, N.S.
President, Rev. George B. Cutten,
Ph.D., D.D., U<.D.
Arts, Science, Theology, Music
Founded 1838
Knox College
Toronto
Principal, Rev. A. Gandier, D.D.
Theology
Founded 1846
CANADIAN EDUCATIONAL INSTITUTIONS
Wycliffe College
Toronto
Principal, Rev. Canon T. R.
O'Meara, D.D.,
Theology
Incorporated 1879
Ontario Agricultural College
Guelph
President, J. B. Reynolds, M.A.
Agriculture, Home Economics
Nova Scotia Agricultural College
Truro
Principal, M. Gumming, B.S.A., LL.D.
Agriculture, Short Course*
Loyola College
Montreal
President, Rev. W. H. Kingston, s.j.
Arts, Lower School, Extension Courses
Incorporated 1899
Ovenden School
Barrie
Principal, Miss E. M. Elgood
Preparatory School for Girls
Ecole des Hautes Etude* Com-
merciale*
Montreal
Directeur, M. Henri Laureys
Affiliated with Univ. de Montreal
Brandon College
Brandon
President, Rev. H. P. Whidden,
B.A., D.D., I^Iv.D.
Arts, Theology, Junior School
Established 1899
Manitoba Agricultural College
Winnipeg
President, John Bracken, B.S.A.
Scientific Agriculture, Home Economics
Macdonald College
Ste. Anne de Bellevue
Princ., F. C. Harrison, D.SC., F.R.S.C.
Scientific Agriculture
Ottawa Ladies College
Ottawa
Principal, Rev. Dr. J. W. H. Milnee
Preparatory, Music, etc.
Bishop Strachan School
Toronto
Principal, Miss Walsh, M.A.
Young Ladies College, Lower School
Founded 1867
Columbian College
New Westminster, B.C.
Principal, Rev. Dr. A. M. Sanford
Theology, Preparatory, Music,
Commercial
ADVERTISEMENTS
Newfoundland
The NORWAY of the NEW WORLD
A Land of Surpassing Beauty and of Rare
Interest for the Traveller.
For the Photographer, the Artist, and the
Lover of the Beautiful in Nature its attractions
cannot be exaggerated. Its dependency,
LABRADOR, exceeds in its picturesque
natural panoramas the much,-praised Fiords
of Norway.
The Sportsman's Paradise
Abounding in game of the finest
in fin, fur and feather. Lordly
Caribou in countless herds. Rivers
teeming with salmon. Lakes filled
with trout. Forests alive with
birds and furry creatures. All
sport free except Caribou hunting,
which requires a license fee of $50
0610), and salmon fishing, which
involves a rod tax of $10 (£2).
Forest, Mine and Farmland
Wealth
Splendid opportunities to acquire
lands for Farming, Mining, Lum-
bering and Pulp and Paper making
on reasonable terms, with gener-
ous concessions from the Govern-
ment of Newfoundland in the way
of free entry for all machinery
and equipments requisite in estab-
lishing new industries.
COPPER and IRON MINES
in active operation.
SAW MILLS cutting exten-
sively of lumber for export.
Two of the world's largest
PAPER MILLS recently estab-
lished.
For information respecting SPORT, apply to Hon. W. F. COAKER,
Minister of Marine and Fisheries, St. John's, N.F.; respecting LANDS
to Hon. ALEX. CAMPBELL, M.D., Minister of Agriculture and Mines,
St. John's, N.F., and otherwise to
HON. SIR R. A. SQUIRES, K.C.M.G., K.C.
Colonial Secretary
ST. JOHN'S .... NEWFOUNDLAND
£j
CONDEDERAT1ON
LIFE
ASSOCIATION
ESTABLISHED 1871
J. K. MACDONALD
PRESIDENT
JOSEPH HENDERSON, Esq. COL. A. E. GOODERHAM
Vice-President Bank of Toronto Chairman Dominion of Canada Guarantee
Vice-President Canadian Mortgage In- and Accident Co.
vstment Co. Director Bank of Toronto
VICE-PRESIDENTS
DIRECTORS:
JOHN MACDONALD, Esq. PELEG ROWLAND, Esq.
President John Macdonald & Co., Limited, President H. S. Rowland, Sons and
Toronto Company, Limited, Toronto
Director Bank of Toronto President Imperial Bank of Canada
JOHN FIRSTBROOK, Esq.
THOS. J. CLARK, Esq. President Firstbrook Bros., Limited,
Vice-President Rolph, Clark & Stone, Toronto
Limited, Toronto
Lieut.-Col. J. F. MICHIE President Lever Bros., Limited, Toronto
President Michie^&^Company, Limited. WILMOT L. MATTHEWS, Esq.
Director Toronto^General Trusts „ .. Director Dominion Bank
Corporation Canadian General Electric Company, etc.
R. S. WALDIE, Esq.
B. B. CRONYN, Esq. Vice-President Victoria Harbor Lumber
Vice-President and Director The W. R. Company
Brock Cpmpany, Limited Vice-President General Accident Assur-
Director Union Bank of Canada ance Co. of Canada
CHARLES S. MACDONALD
GENERAL MANAGER
JAMES A. MACDONALD J. TOWER BOYD
SECRETARY GENERAL MANAGER OF AGENCIES
V. R. SMITH, A.A.S., A.I.A.
ACTUARY
DR. ERNEST M. HENDERSON
MEDICAL DIRECTOR
POLICIES ISSUED ON ALL APPROVED PLANS
Insurance in Force $146,000,000.00
Accumulated Funds - - - 31,000,000.00
Head Office, Toronto
The Dominion Bank
(Established 1871)
HEAD OFFICE, TORONTO
Capital, Paid up - - $6,000,000
Reserve Fund ,* - - 7,000,000
BOARD OF DIRECTORS:
SIR EDMUND B. OSLER, President.
A.W.AUSTIN, \
SIR AUGUSTUS M. NANTON, JVlce~
Charles S. Blackwell E. W. Hamber R. S. McLaughlin
James Carruthers H. W. Hutchinson W. W. Near
R. J. Christie W. L. Matthews A. T. Reid
R. Y. Eaton H. H. Williams
C. A. BOGERT, General Manager.
Branches and Agents Throughout Canada and in All Parts
of the World.
London, England, Branch: 73 Corn hill, E.C.3.
New York Agency: 51 Broadway.
Savings Department in connection with each branch
Interest allowed at current rates
A general Banking Business transacted
32 BRANCHES IN TORONTO
Safety Deposit Boxes to rent at moderate rates, for War Bonds
and other Securities and Valuables.
Accounts of Merchants, Traders, Manufacturers, Farmers, Cor-
porations and Individuals received on favourable terms.
Organized 1856
THE
NATIONAL PARK BANK
OF NEW YORK ,
214 BROADWAY
TRANSACTS A GENERAL BANKING BUSINESS
Capital, Surplus and Undivided Profits— $33,000,000
Authorized to act as Executor, Trustee, Administrator,
Guardian and in any other Trust capacity
Receives Securities for Safe-Keeping
and Collection of Income
Securities Sold and Purchased
for Customers1 Account
A highly developed Credit Information Service
available to customers
Foreign Exchange, Commercial and Travelers' Credits issued.
Correspondents in all principal cities of the world
Safe Deposit Vaults at moderate rental
CANADIAN
GOVERNMENT
' ' AND
MUNICIPAL
BONDS
afford the owner a degree of
safety which, combined with
the present high yield, readers
them an extremely desirable
purchase.
Interesting details will be mailed on request.
Wood, Gundy & Company
36 KING STREET WEST
TORONTO ,^ ,a"
MONTREAL NEW YORK
WINNIPEG LONDON, ENG.
Western Assurance Company
Incorporated A.D. 1851
FIRE, MARINE, AUTOMOBILE, RIOT, CIVIL
COMMOTION AND STRIKES
Losses paid to policy-holders since organization of the Company
in 1851, over $84,000,000.00.
LONDON OFFICES -* - f. V 14 Cornhill, E.G.
HEAD OFFICES - , ;- * TORONTO, CANADA
W. B. MEIKLE, W. M. COX,
President. Vice-President.
E. F. GARROW, C. S. WAINWRIGHT,
Assistant General Manager Secretary.
British America Assurance Company
Established in the Reign of King William IV., A.D. 1833
FIRE, MARINE, INLAND TRANSPORTATION, AUTO-
MOBILE, RIOT, CIVIL COMMOTION AND STRIKES
Losses paid to policy-holders since organization of the Company
in 1833, over $52,000,00.00.
LONDON OFFICES 14 Cornhill, E.G.
HEAD OFFICES .... TORONTO, CANADA
W. B. MEIKLE, W. M. COX,
President. Vice-President.
E. F. GARROW, C. S. WAINWRIGHT,
Assistant General Manager Secretary.
THE
NATIONAL CITY COMPANY
Limited
Bonds and Investment Securities
Canadian Advisory Board:
RT. HON. LORD SHAUGHNESSY, K. C. V. 0.. Chairman.
SIR JOHN AIRD, EDSON L. PEASE,
MARTIAL CHEVALIER, SIR AUGUSTUS NANTON
SIR LOMER GOUIN, K. C. M. G. W. N. TILLEY, K. C.
LT. -COL. HERBERT MOLSON, C. H. G., M. C
Canadian Head Office:
74 Notre Dame Street West, Montreal.
10 King Street East,
Toronto, Ont.
Tflf^y
McCurdy Building:,
Halifax, N.S.
IONA
_
If THE CITY OF NEW Y(
V ;tablisKed 1851
OFFICERS
ILLIAM WOODWARD
\0
Canada Permanent Mortgage Corporation
(Established 1855)
HEAD OFFICE— TORONTO STREET, TORONTO
BRANCH OFFICES:— Winnipeg, Man.; Regina, Sask.; Edmonton, Alta.;
Vancouver, B.C.; St. John, N.B.; Halifax, N.S., and Woodstock, Ont.
President— W. G. GOODERHAM Vice-President— R. S. HUDSON
Joint General Managers— R. S. HUDSON, JOHN MASSEY
Assistant General Manager— GEORGE H. SMITH
Paid-up Capital $7,000,000
Reserve Fund (earned) 7,000,000
Investments exceed 39,000,000
-. DEPOSITS
The Corporation is a Legal Depository for Trust Funds
Every facility is afforded Depositors.
Deposits may be made and withdrawn by mail with perfect convenience.
Deposits of one dollar and upwards are welcomed.
INTEREST IS CREDITED AND COMPOUNDED TWICE A YEAR
DEBENTURES
For sums of one hundred dollars and upwards we issue Debentures bearing a
special rate of interest, for which coupons payable half-yearly are attached. They
may be made payable in one or more years, as desired. They are a
LEGAL INVESTMENT FOR TRUST FUNDS
Under the same direction and management is
THE CANADA PERMANENT TRUST COMPANY
which accepts and carefully executes trusts of every description.
London Guarantee
and Accident Company, Limited
ESTABLISHED 1869
Automobile
Employers' Liability
Elevator Liability
Public Liability
Accident and Sickness
Fidelity Guarantee Bonds
Contract Bonds
Succession Duty Bonds
Administration Bonds
Court Bonds, etc.
and FIRE INSURANCE
ASSETS EXCEED $31,000,000
Chief Office for Canada— TORONTO
GEO. WEIR, Manager for Canada
HEDLEY C. WRIGHT, Assistant Manager
TH,E CHATEAU LAURIER
OTTAWA
Theldeal Headquarters While Visiting Canada for Business
or Pleasure
Unexcelled in Service, Comfort and Appointments
Three Hundred and Fifty Rooms — Rates $3.50 per day and up.
European Plan.
Owned and Operated by the Grand Trunk Railway System.
ANGUS GORDON, Manager.
Jl Canadian Pacific Hotel ~ Atop o* Old Quebec
,00
The Glamour of Quebeckan Nights
NIGHT is full of strange glamour — from the Grand
Terrace in front of the Chateau Frontenac. A
great moon, hung over distant hills. A silvery path-
way to it, over the St. Lawrence. To one side, the an-
cient citadel of Quebec. Directly under foot, a quaint
town; its French, its streets, its life just as they were
300 years ago. Then behind — the hospitable chateau,
its far-flung towers ablaze with light. Gay music.
Dancing, dining, and promenading — by the pleasure
seekers of a continent. Good motor roads. Make
reservations now.
Information at any Canadian Pacific Office or Manager Chateau
Frontenac, Quebec.
CHATEAU
FRONTENAC
Ill •—
"Continental Limited"
Daily in Either Direction
MONTREAL WINNIPEG
EDMONTON PRINCE RUPERT
VANCOUVER VICTORIA
Through Compartment - Observation-
Library, Standard and Tourist Sleeping
and Dining Cars; Colonist Cars and
Coaches.
The "National"
TORONTO PORT ARTHUR
FORT WILLIAM WINNIPEG
Through Standard and Tourist Sleeping
and Dining Cars, Colonist Cars
and Coaches
Alternative Routing
To and From Toronto
is via Grand Trunk Railway, connecting at
North Bay with "Continental Limited"
east and west bound.
JASPER PARK LODGE ON LAC BEAUVERT
An Ideal Stop-Off Point
Open June 15th to September 15th
Under direct management of
Canadian National Railways' Hotels Dept.
Canadian National Railways
INDEX TO NAMES
Lists of Names in Text too long to Index Individually
PAGE
Appointments as Hon. Military
A.D.C. to Governor-General.... 251
Alberta Elections, Candidates
in 854-5
Appointments, Chief Banking 38
Appointments in Canada, Domin-
ion Government 330
Apointments in Canada, Financial 53
Appointments in Canada, Insur-
ance 69-70
Appointments, Dominion Ju-
dicial 330-1
Appointments, Manitoba Govern-
ment 751
Appointments in Canada, Militia 341-2
Appointments, Ontario Govern-
ment 545-6
Bankers in United States, Can-
adian 48
Bank Directors, Western 47
Canadian Bankers' Association,
Officers elected by 37
Canadian Clubs, Presidents of 899
Canadian General Elections, Can-
didates in 511-517
Empire Universities, Canadian
Delegates at Congress of 222-3
G.W.V.A., Presidents of Provin-
cial Commands in 348
Honours granted to Canadians,
Foreign 187-8
Imperial Conference, Delegates at 214
PAGE
Imperial Press Conference, Dele-
gates at 199-200, 204-5
International Labour Conference,
Canadian Delegation to 89
I.O.F., Officers and Chief Rangers
in 64
King Government, Members of.... 523
League of Nations Assembly,
Delegates to 83, 88
McGill University, Hon. Degrees
Conferred by 671
McGill University, Hon. Gradu-
ates Created by 672
Meighen Government, Cabinet
Members in 320
Ontario Educational Association,
Departmental Presidents of 603
Parliamentary Debates, Intro-
ducers of 359-60
Peace Commission, Members of 133-4
Saskatchewan Elections, Candid-
ates in 812-13
Senate, Appointments to 330
Teachers' Conference, Delegates
at Imperial 225
Treaties signed by Canada, Signa-
tories to 124
United States Cabinet, Members
of 129
Washington Conference, Delegates
to 110-11
Ackerman, C. W., 101
Acland, F. D., 374
Acres, H. G., 157, 362.
Adami, Dr. J. George, 223.
Adams, Mrs. A. W., 719.
Adams, Prof. F. D., 224, 674.
Addams, Jane, 292.
Addie, G. K., 689.
Adrian, Stewart, 188, 312.
Ahearn, Thomas, 39.
Aikins, Lady, 247.
Aikins, Sir James, 706, 707, 739,
758, 775, 846, 847, 898.
Aird Sir John 37, 47, 254, 483.
Albert, H.R.H. Prince, 164.
Albert, King (Belgium), 221.
Alexander, Sir William, 706.
Alexander, W. J., 599.
Alexandra, H.M. Queen, 163.
Allan, Andrew, 39.
Allan, Bryce, 41.
Allan, Sir Hugh, 39.
Allan, Prof. J. A., 823, 857.
Allan, Sir H. M., 39-43, 102.
Allen, B.A., B. M., 226.
Allen, Sir James, 94, 252.
Allerton, Andrew, 409.
Allison, Joseph, 730.
Allison, J. W., 705.
Allward, Walter S., 241.
Amery, M.P., Lt.-Col. L. C. M.
S., 193, 194.
Ames, A. E-, 205.
Ames, Sir Herbert B., 82, 87,
357, 369.
Amidon, U.S. District Judge
Charles F., 292.
Amos, c.E., Arthur, 648, 649.
Amos, Mrs. J. S., 584.
Amos, W. A., 527, 580, 603,
615,619.
Anderson, C. W., 688.
Anderson, K.C., Edward, 233.
Anderson, F. W., 881.
Anderson, George, 756.
Anderson, J. W., 750.
Anderson, John, 791.
Anderson, Dr. J. T. M., 803.
Andrews, K.C., A. J., 743, 750-1
Andrews, D.S.O., Maj. G. W.,
355, 511, 743.
Andrews, Rt. Hon. J. M., 275.
Angell, Dr. J.R.,671.
Angus, Richard B., 406.
Angus, A. F., 804.
Annable, W. G., 417.
Archdale, Rt. Hon. E. M., 275.
Archibald, Justice, 678.
Archibald, G. G., 709, 732.
Armstrong, C.B., Brig.-Gen.,
C. J., 134.
Armstrong, Hon. E. H., 440,
678, 688, 691, 693, 694.
699, 701 .
Armstrong, F. W., 695.
Armstrong, Dr. G. E., 674.
Armstrong, George, 739, 750,
759, 788.
Armstrong, Hon. Hugh, 449.
Armstrong, J. E., 319, 510.
Armstrong, Lawrence H., 228.
Armstrong, R. E., 354.
THE CANADIAN ANNUAL REVIEW
Armstrong, W. H. G., 313.
Arnold, M.D., W. C. 343.
Arnoldi, Miss Joan, 354.
Arnup, Rev. Jesse, 552.
Arsenault, Hon. A. E., 736.
Arthur, D.S.O., Maj. C. G., 343.
Arthurs, Lt.-Col. James, 511.
Artz, G. J., 30.
Ashbolt, A. H., 431.
Ashdown, J. H., 753.
Ashfield, Lord, 183.
Ashley, Sir. Wm., 223.
Ashplant, H. B., 626, 638.
Ashton, Maj.-Gen. E. C., 337.
Ashton, Robert H., 582, 583.
Askwith, J. E., 560.
Aspden, T. Fred, 48.
Asquith, Rt. Hon. H. H., 167,
265, 297.
Asselin, Maj. Olivar, 653.
Askwith, Lord, 235.
Atholstan, Lord, 199-201, 252,
491,653.
Atkinson, J. E., 137, 199, 599.
Atwater, K.C., A. W., 402.
Audette, Mr. Justice, 32.
August, E. A., 758.
Auld, F. H., 799, 796, 797.
Avison, R. J., 771.
Aylesworth, Sir Allen, 232.
Ayton, J. A., 206.
Backus, E. W., 631, 632, 633,
634, 742.
Badger, W. T., 811, 812.
Bailie, John, 39.
Baird, Hon. James B., 758.
Baird, Robert, 867.
Baker, Principal, 607.
Baker, Dr. A. R., 868, 873, 874.
Baker, Hon. P. E., 844, 856.
Baker, Percival, 853, 855.
Baker, W. G., 793, 812.
Baldwin, W. T., 62.
Ball, A. H., 800, 804.
Balfour, Rt. Hon. A. J., 84, 85,
111, 112, 114, 115, 117,
118, 121-24, 184, 218, 222,
224.
Balfour of Burleigh, Lord, 222.
Ballantyne, Hon. C. C., 39, 119,
193, 214, 249, 350, 368,
414, 415, 451, 485, 487,
488,504,506,510,901.
Ballantyne, H., 899.
Bancroft, Fred, 615, 617.
Bandouin, Dr. Jos. A., 137.
Bannatyne, A. G. B., 776.
Barker, Lt.-Col. R. K., 350.
Barnard, Frank, 862, 869.
Barnes, C. E., 890, 896.
Barnett, Maj. John, 345.
Barnett, J. W., 845.
Barnstead, A. S., 694.
Barrow, Hon. E. D., 865, 866,
881, 888.
Barry, Archibishop, 282.
Barry, Mr. Justice, J. H., 718.
Barton, R. C., 299, 303.
Basterfield, B.SC., S., 804.
Bates, Rt. Hon. Sir R. B., 275.
Batho, George, 744.
Bauld, MX.A., Henry G., 697.
Baxter, A. Beverley, 183.
Baxter, Hon. J. B. M., 320, 394,
452, 718, 724, 728.
Baxter, R. B., 858.
Bayley, W. D., 759, 760, 761.
Bayne, E. E., 769.
Bayne, J. N., 787.
Beatty, Admiral The Earl, 111,
119, 127, 354, 899.
Beatty, K.C., E. W., 26, 239,
405-09, 490, 670, 862.
Beaubien, L. G., 41.
Beaverbrook, Lord, 183, 235,
704.
Beck, Sir Adam, 158, 427, 608-
10, 612, 613, 615, 618-23,
626, 692.
Beck, Edward, 254.
Beck, Hon. James M., 132.
Beck, Hon. N. D., 828, 859.
Bedard, Dr. Avila, 647, 649.
Bedard, M., 182.
Bedford, S. A., 744, 767, 775.
Beeton, Sir May son, 231.
Begg, William A., 791.
Beique, Senator F. L., 408,
412, 657.
Beland, Hon. H. S., 91, 355,
457, 459, 487, 510, 519,
523.
Belcher, Jonathan, 707.
Belcourt, Senator N. A., 412,
601.
Belgians, Queen of, 221.
Beliveau, Archbishop, 721. 774-.
Bell, A. J., 605.
Bell, G. A., 379, 787.
Bell, Dr. Gordon, 749.
Bell, Hon. J. H., 394, 492, 734,
735.
Bell, J. P., 47.
Bell, W.J., 408
Belley, Hon. L. de G., 320, 451,
481.
Bell-Irving, H., 433, 880.
Bellisle, J. Adolphe, 649.
Benedict, His Holiness Pope,
284.
Bennett, Hon. R. B., 52, 320,
491, 510, 852.
Binnie, Rev. J., 606.
Benson, Frederick 893.
Benson, Admiral W. S., 124,
295.
Bentley, A. F., 717.
Bercovitch, K.C., P., 659, 663.
Berlis, Rev. H. A., 596.
Bernard, Most Rev. Dr. J. H.,
223, 678.
Bernier, Hon. J. E., 759, 760,
774.
Berry, J. W., 896.
Best, Dr. F. E., 900.
Bevington, George, 44.
Bienvenu, Tancrede, 419.
Biggar, Maj.-Gen. J. L., 240.
Biggar, K.C., O. M., 433, 435-6.
Biggar, K.C., W. H., 402.
Biggs, Hon. F. C., 439, 528,
534, 571-75, 625, 638.
Billington, Miss, M. F., 200,
203.
Birge, Cyrus A., 430, 901.
Birkenhead, Lord, 220, 303,
234, 265, 706.
Birkett, Charles, 470.
Birkett, Dr. H. S., 674.
Bishop, c.B., W. I., 648.
Bishop, C.W., 899.
Bissett, Dr. E. E., 697.
Black, Col. Frank B., 730.
Black, Rev. John, 776.
Black, Joseph L., 730.
Black, Percy C., 689, 690.
Black, Robson, 182, 231.
Blackader, M.A., A. D., 673.
Blain, Hugh, 159.
Blair, K.C., G. F., 804.
Blake, A. W., 69.
Blake, M.P., Dr. M. R., 743.
Blanchard, Dr. R. J., 775.
Bland, Rev. Dr. S. G., 508.
Blaylock, Lt.-Col. W. H., 677.
Blois, Ernest H., 696.
Blondin, Senator P. E., 201, 322
Blue, Rev. A. Wylie, 310.
Blue, John, 253.
Boag, J. A., 564.
Bodington, O. E., 205, 206.
Bodkin, K.C., Mr., 265.
Bogert, C. A., 34, 43, 44, 47.
Boivin, A. R., 774.
Boivin, Hon. G. H., 319.
Bellert, M.A., Miss M. L., 887.
Bolles, Lemuel, 136.
Bolster, Maj. Herbert G., 243.
Bolt, G. H., 705.
Bonavia, W. J., 865.
Bone, J. R., 599.
Bonnar, K.C., R. A., 470, 478.
Booth, General BramweU, 899.
Borah, Senator W. E., 103 ,
138, 288.
Bordage, Auguste, 724.
Borden, Lady, 117.
Borden, Rev. Dr. B. C., 730.
Borden, Rt. Hon. Sir R. L.,
75, 81, 82, 86, 89-91, 100,
113, 116-18, 122-24, 133,
140, 142, 143, 158, 169,
171, 184, 194, 211, 221,
246, 315, 365, 409, 455,
478, 487, 496, 504, 604,
670.
Borel, Prof. Eugene, 316.
Bostock, Senator H., 412, 519,
522, 523.
Both well, A. M., 804.
Bothwell, George, 583.
Botsford, Prof., 590.
Botterell, W. J., 346.
Bottomley, Dr. E., 749.
Boucher, W. E. E. Aime, 368.
Boudreau, R., 327.
Bouffard, Prof. J., 676.
Boulton, Sir H. E., 205, 206.
Bourassa, Henri, 76-7, 169, 171,
306, 309, 368, 481, 487, 488.
Bourgeois, M., 83, 84.
Bourne, Cardinal, 265, 278.
Bowden, W. A., 156, 157.
Bowen, Capt. J. C., 849, 850.
Bower, J. H. W., 343.
Bowler, B. P., 36.
Bowman, Hon. Beniah, 317,
526, 528, 534, 636.
Bowring, Sir Edgar, 192.
Bowser, Hon. W. J., 859, 864,
869-71, 873, 876-78, 880,
881, 884.
Boyce, K.C., A. C., 381, 384.
Boyd, K.C., L. H., 472.
Boyer, Senator Arthur, 412.
Boyer, Aurelien, 675.
Boyle, Hon. J. R., 829-31, 837,
838, 849, 854.
Bracken, John, 744, 799, 804.
Brackin, R. L., 547, 549, 639.
Bragg, W. J., 563, 637.
Branch, K.C., Hon. E. St. J., 193
Brankin, D. B., 868.
Breadner, R. W., 132.
Br^boeuf, Father, 607.
Brett, His Honour R. G., 433,
827, 832.
Breyfogle, W. R., 58.
Briand, M., 116.
Bricker, E. G., 750.
Brickner, Rabbi, B. R., 553.
Briden, William, 604.
Bridgeman, J. P., 563.
Bristol, Hon. E., 320, 419.
Brittain, M.P., Sir Harry, 200.
Brittain, H. L., 536.
Brittain, M.A., Isabel E., 669.
Brodeur, J. A. A., 63, 65.
Brodeur, Hon. L. P., 333.
Brodie, Mrs. George, 770.
Brookfield, S. M., 730.
Brooks, Sydney, 253.
INDEX TO NAMES
Brossard, E. J., 65.
Brown, K.C., A. J., 91.
Brown, C. W., 717.
Brown, Hon. Edw., 751-54, 757,
766.
Brown, K.B.B., Sir Geo. McL.,
181, 204, 205, 255, 418.
Brown, Gerald H., 374.
Brown, J.L., 768, 771.
Brown, M. A., 770.
Brown, Maynard W., 705.
Brown, Lady McLaren, 418.
Brown, N. R., 869.
Brown, Vere C., 48.
Brown of Cloyne, Bishop, 285,
305.
Browne, W. Graham, 57.
Browne- Wilkinson, E. E., 349.
Brownlee, Hon. J. E., 832, 855,
857, 859.
Brownrigg of Ossory, Bishop,
285
Bruce, Sir Robert, 202, 203.
Bruchesi, Archbishop Paul, 314,
675.
Brugha, Cahal, 305.
Bruneau, Mr. Justice, 677-78.
Brunton, Stopford, 672.
Bryan, Hugh, 606.
Bryant, M.A., James F., 450.,
802, 804.
Bryce, Lord, 154.
Bryce, M.A., Rev. G. W., 776.
Bryce, Rev. Peter, 551.
Buchanan, Dr. Daniel, 605.
Buchanan, G. O., 880.
Buchanan, Sir James, 890.
Buchanan, W. A., 355.
Buckley, L. A., 899.
Buckworth, A. B., 861.
Bullman, W. J., 901.
Burde, Maj. R. J., 874, 881,
888.
Bureau. Hon. Jacques, 481,
510, 523.
Burgess, Prof. R. W., 227.
Burke, Congressman, 127.
Burke, W. E., 419.
Burnaby, R. W. E., 477, 493,
527, 580, 582, 583, 626,
638, 732.
Burnell, C. H., 771.
Burnham, Lady, 204.
Burnham, Lord, 89, 200, 202-04
248.
Burnham, J. H., 367.
Burns Patrick, 421, 847.
Burpee, Maj. F. D,, 425.
Burpee, Lawrence J., 154.
Burrell, Hon. Martin, 193.
Burris, A. D., 698.
Burrows, A. G., 576.
Burstall, K.C.B., Sir Henry E.,
334, 336, 776.
Burt, A. L., 847.
Burton, C. L., 551.
Bury, A. N. G., 252.
Bury, Sir George, 191.
Butchart, R. P., 203, 862.
Butler, N. M., 705.
Butler, Pierce, 402.
By, Col. John, 247.
Byng of Vimy, H. E. Lady, 221,
249-51.
Byng of Vimy, H, E. Gen. The
Lord, 164, 221, 249-51,
253, 306, 346, 601, 671, 736,
793.
Byrne, Hon. J. P., 725, 726, 718.
Cadham, Dr. F. T., 749.
Cahan K C , C. H., 36, 489, 689.
Cahan, Jr., C. H., 36.
Cahill, M.P., F. S., 307, 401.
Cains, G. L., 39.
Cairns, J. F., 790.
Calder, F. G., 731.
Calder, J. A., 638.
Calder, Hon. J. A., 326, 455,
491, 506, 520.
Caldwell, Prof., 224.
Caldwell, T. W., 731, 732-3.
Callaghan, John, 858.
Callahan, E. J., 629.
Calvin, D. B., 606.
Cambie, Charles, 49, 181, 205,
254.
Cameron, D.SC., A. E., 804.
Cameron, D. A., 206, 530.
Cameron, Hon. D. A., 688.
Cameron, Duncan, 760.
Cameron, Dr. Irving H., 605.
Cameron, M.L.A., Murdo, 790.
Campbell, Dr., 704.
Campbell, K.C., A. J., 692.
Campbell, C.M.G., A. Lome, 183
Campbell. A. S., 365.
Campbell, c.E., A. W., 438
Campbell, D. A., 843.
Campbell, Mrs. D. A., 704.
Campbell, IX.D., George S , 704
Campbell, G. S., 90.
Campbell, J. A., 355, 394, 424.
Campbell, J. C., 367.
Campbell, Mrs. Kenneth, 750.
Camsell, Charles, 325.
Cane, Howard, 332.
Cannon, K.C., L. A. A., 659.
Cannon, M.P., Lucien, 307, 366,
401, 423, 510.
Cantin, Mrs. Mary, 853.
Cantley, Thomas, 391, 690, 901.
Capewell, H., 349.
Cappon, Dr. James, 605.
Capreol, K.C., J. Lonsdale, 545.
Carey, D. A., 592.
Carley, D. L., 205.
Carlisle, A. M., 298.
Carlyle, S. G., 814.
Carlyle, B.SC., W. L., 164.
Carman, A. R., 491.
Carmichael, Lt.-Col. Hon. D.,
609, 612.
Carmichael, J. F., 602.
Carnochan, Miss Janet, 604.
Caron, A. L., 664.
Caron, Hon. J. E-, 32, 607, 608,
656, 660, 682, 900.
Carpenter, Judge, A. A., 821.
Carpenter, Mrs. Harry, 502.
Carpenter, H. S., 785.
Carr, H. A., 846.
Carr, Mrs. Paul, 826.
Carrel, Hon. Frank, 206, 209,
419.
Carroll, Hon. H. G., 664.
Carroll, Thomas, 811.
Carruthers, Rev. Canon, 253.
Carruthers, Hon. J. H., 253.
Carson, Sir Edward, 273-75,
292, 310, 311.
Carson, J. H., 503, 553.
Carson, W. O., 587.
Carter, R. B., 243.
Carter, K.C., W. D., 869.
Carter, Dr. S. W., 729.
Cartwright, A. D., 381.
Carvell, K.C., Hon. F. B., 381,
385, 730.
Casgrain, Senator J. P. B.,
412, 419.
Cashin, Sir Michael, 191.
Casselman, A. C., 524.
Casselman, M.L.A., W. H., 493,
611, 614.
Cassels Sir Walter, 399, 402-3.
Catelli, C. H., 206.
Catherwood, J. A., 873.
Cautley, R. W., 867.
Cavan, K.P., Gen. The Earl of,
111, 120, 121, 169,899.
Cavendish, Lady Anne, 247.
Cavendish, Lord Charles, 247
Cecil, Lord Robert, 84, 222, 266
Chaballe, Lt.-Col. 653.
Chace, W. H., 717.
Chaisson, Bishop Patrick, 721.
Challies, J. B., 362.
Chalmers, W. W., 159.
Chamberlain, Rt. Hon. J., 402.
Chamberlain, Rt. Hon. Austin,
169, 212.
Champlain, M.S., M., 804.
Chandler, W. H., 161.
Chaplin, Lord, 236.
Chaplin, J. D., 534
Chaplin, Col. R. S., 893.
Chappell, W. E., 896.
Charlesworth, H., 886.
Chailesworth, L. C., 281.
Charlton, H. R., 204.
Charlton, Hon. W. A., 319.
Charteris, W. M., 253.
Chartier, Canon E., 675.
Charters, John, 303.
Chelmsford, Bishop of, 271.
Chelmsford, Lord, 175.
Chevrier, Horace, 750.
Childers, Erskine, 271, 303, 305
Ching, C. S., 374, 375.
Chipman, F. A., 709.
Chipman, G. F., 750, 770.
Chipman, Dr. W. W., 674.
Chisholm, Hon. C. P., 698.
Chisholm G. R., 245.
Chisholm, Maj. H. A., 254.
Chisholm, Mr. Justice, J. A.,
706, 707.
Chown, M.A., G. Y., 606.
Chown, B.A., Henry H., 775.
Christie, Rev. Dr. David, 775.
Christie, L. C., 117.
Christie, Loring C., 133, 219.
Christie, M. F., 209.
Christie, W. J., 743.
Christophers, P. M., 854.
Church, T. L-, 205, 312, 427,
493.
Churchill, Rt. Hon. Winston S.,
49, 168, 169, 184, 185, 196,
211, 212, 214, 215, 217, 252.
Clanricarde , Earl of, 164.
Clark, Prof. A. B., 750, 753, 789.
Clark, C. D., 154.
Clark, F. W., 690.
Clark, Sir George, 186.
Clark, C.M.G., Brig.-Gen. J. A.,
511, 517.
Clark, K.C., J. Murray, 232, 706,
708.
Clark, J. W., 867.
Clark, Dr. Michael, 151, 351,
355, 368, 462, 463, 473,
474, 493, 510, 826.
Clarke, His Honour L. H., 205,
544, 624.
Clarke, W. H., 690.
Clarke, D.D., Rev. W. W., 776.
Clarkson, G. T., 340, 456.
Clearihue, J. B., 873.
Clement, A. H., 683.
Clemens, H. B., 583.
Clouse, W. F., 131.
Clubb, W. R., 760, 761.
Clune, Archbishop P. J., 279,
298.
Coaker, Hon. W. F., 190.
Coats, B.A., R. H., 323.
Cockran, W. Bourke, 286.
Cochrane, W., 628.
Cockshutt, Lt.-Col. Henry, 544,
901.
THE CANADIAN ANNUAL REVIEW
Cockshutt, M.P., W. F., 143,
151, 205, 206, 510.
Cody, Ven. Dr. H. J., 588, 608,
898.
Coffin, E. W., 843.
Cohalan, Bishop, 278, 279, 293.
Cohalan, Judge D. F., 80, 294,
295, 306.
Colby, Dr. C. W., 670, 671.
Cole, A. A., 576.
Coleman, D. C., 433, 472.
Coleman, E. P., 430.
Coleman, Dr. Herbert, 137.
Collins, Michael, 261, 297, 302,
303, 305.
Colly er, F. J., 757.
Colpitt, P. R., 693, 695.
Comeau, Hon. J. W., 688, 721.
Conant, B.A., Robert, 705.
Congdon, F. T., 891.
Conha, M. da., 83.
Connaught, H.R.H., The Duke
of, 133, 164, 174, 175, 180,
220, 249, 688.
Connuaght, Prince Arthur of,
164, 174.
Connelly, W. J., 564.
Connolly, U. S., 157.
Conroy, Dr. B. A., 659.
Constantineau, Judge, 329.
Conybeare, Dr. C. F. P., 830.
Cook, A. B., 790.
Cook, Fred, 327, 604.
Cook, Rt. Hon. Sir Joseph, 106,
212, 254.
Cook, Miss Marion, 168.
Cooke, J. R., 611, 614.
Cooney, T. F., 296.
Coontz, Admiral R. E., 111.
Cooper, Lt.-Col. J. A., 133, 134.
Coote, M.P., Wm., 310, 311.
Copeland, R. A., 895, 896.
Copp, Hon. A. B., 358, 510, 523.
Coppley, G. C., 159, 898.
Corkey, Rev. Wm., 310.
Corless, C. V., 605.
Corley, K.C., J. Seymour, 544.
Corey, Lt. J. Wallace, 244.
Corning, Howard, 688, 698, 700.
Cornwall, Lt.-Col. J. K., 853.
Con-in, E. S., 243.
Cortelyou, G. B., 291.
Cory, W. W., 322.
Cory ell, C. S., 58.
Cote, Hon. J.L., 857.
Cotelle, E., 675.
Cotton, Almon James, 775.
Cottelle, G. R., 64.
Coughlin, B. W., 901.
Coulthard, R. W., 343.
Courtice, Mrs. A. C., 604.
Cousins, E. L., 159.
Cowan, M.P., Dr. W. D., 368.
Cowan, Mrs., 252.
Cox, Governor, 288.
Cox, Herbert C., 56.
Craig, H. A., 814.
Craig, Hon. James, 353.
Craig, Rt. Hon. Sir James, 274,
299, 301, 311-13.
Craig, R. W., 775, 898, 899.
Craig, W. Dixon, 847.
Crandall, C. F., 199, 203.
Crawford, Major, 243.
Crawford, Lindsay, 77, 170,
232, 306-09.
Crawford, Miss Mary, 846.
Crawford, Thomas, 565.
Crawford, Hon. Thomas, 638.
Creelman, Dr. G. C., 545, 564.
Creelman, Lt.-Col. J. J., 340.
Creelman, W. A., 697.
Crehan, Maj. M. J., 349, 350.
Crerar, Hon. T. A., 91, 143,
151, 184, 248, 315, 318,
355, 357, 362, 364, 367,
368, 390, 394, 423, 424,
445, 449, 451-53, 455, 546,
461, 465, 467, 470, 472-75,
477-80, 491-93, 503, 510,
517, 520, 521, 525, 581,
683, 739, 768, 770, 771,
779, 780, 806, 807, 824,
826.
Cret, Prof. Paul, 241.
Crewe, Marquess of, 222, 235.
Crighton, W. L., 204.
Crocket, J. H., 899.
Cromer, Earl of, 165.
Cronyn, M.P., Hume, 343, 427.
Crooks, Rev. L. W., 310.
Crosby, Hon. C. W., 440, 736.
Crosby, W. W., 738.
Cross, Mr. Justice A. G., 674.
Cross, K.C., Hon. C. W., 854.
Cross, Lt.-Col. J. A., 462, 812.
Cross, W. H., 754.
Crothers, Hon. T. W., 455.
Crowe, C. R., 340.
Crowe, K.C.,, Maj. Walter, 690.
Cruikshank, Brig.-Gen. E. A.
604, 608.
Cruise, G. A., 812.
Cumming, M., 685, 694.
Cummings, H. D., 775.
Cunliffe-Owen, Sir H., 183.
Cunningham, Lt.-Col. F. H.,
895.
Curran, Justice J. P., 472.
Curren, L. Murray, 724.
Curie, Mme., 134.
Currie, Lady, 670.
Currie, Gen. Sir A. W., 102'
120, 224, 249, 253, 334,
670, 674.
Currie, M.P., Col. J. A., 212, 350,
510, 511.
Currie, J. H., 803.
Currie, R. M., 61.
Curry, J. W., 550.
Curry, Capt. Leon Hall, 243.
Curry, Senator N., 901.
Curtis, Lionel, 303.
Curzon, Lord, 78, 83, 106, 127
179, 212, 214, 215, 222.
Dafoe, J. W., 201, 202.
Dale, Prof. J. A., 598.
Dalhousie, Earl of, 704.
Dalrymple, J. E., 419.
Dandurand, Hon. R., 90, 412,
522.
Dane, Fred, 312.
Daniels, Josephus, 291.
Daniels, Hon. O. T., 694, 698,
699, 700.
Daoust, Emilien, 675.
Darling, Frank, 241.
Darling, B.B., J. F., 205, 206.
Darrell, Edward F., 133.
Das, C. R., 178.
Datta, Dr. S. K., 255, 899.
Daugherty, J. B., 69.
David, Hon. L. Athanase, 204,
220, 486, 650, 653, 659,
666.
David, Senator L. O., 412.
Davison, Prof. G. C., 887.
Davidson, James, 603.
Davidson, Randall, 57.
Davidson, W. J., 750.
Davidson, W. M., 838, 847.
Davies, Lt.-Col. R. D., 865.
Davis, Nursing Sister, 242.
Davis, C.M.G., Col. E. G., 343.
Davis, K.C., E. P., 862.
Davis, F. L., 355.
Davis, Thomas, 276, 301.
Davison, A. E., 746.
Dawe, A. L., 202.
Dawes, Norman J., 39.
Dawson, Sir William 669.
Day, W. W., 638, 639.
Deacon, Mrs. T. R., 748.
Deane, G. H., 886.
Decarie, Lt.-Col. J. P., 653.
Decary, E. R., 658.
D'Egville, Sir Howard, 200
Delage, Cyrille F., 608, 666,
667, 668.
DeLorimier, Justice, 678.
Denby, E., 289.
Denis, Theo, 649, 650.
Denison, Col. G. T., 537, 545.
Denison, Capt. John, 244.
Denison, K.C., Shirley, 627.
Denne, Roland, 367.
Dennis, Senator, 704.
Dennis, J. S., 154.
Dennis, W. H., 704.
Denovan, Lt., 242.
Deny, Prof. George, 295.
Deroche, A. P., 588.
Desaulniers, Dr. E. M., 440.
Desbarats, G. J., 119, 351.
Desborough, Lord, 205, 206,
209, 248.
Descamps, Baron, 85.
Deslauriers, H., 212.
Despatie, Malvina, 677, 678.
De Valera, Eamonn, 261, 264,
269, 271, 274, 276, 280.
282, 284, 286, 287, 290,
294-305, 307-09, 312.
Deville, U..D., E., 433.
Devonshire, H.E., The Duchess
of, 168, 246-48, 359, 655.
Devonshire, H.E., The Duke of,
90, 168, 183, 184, 194, 200,
205, 231, 246-48, 337, 339,
355, 359, 642, 652, 655, 761,
860.
Devoy, John, 285.
Dewar, M.I,. A., J. A., 737.
Dewart, K.C., H. H., 493, 541-
43, 549, 550, 589, 614, 625,
626, 627, 629, 632.
Dewdney, Ven. A. D. A., 806.
Dexter, Prof. J.S.,804.
Dick, Mrs. John, 504, 748.
Dill, Sir Samuel, 223.
Diotte, Henry, 719, 724.
Dixon, F. J., 739, 741, 753, 757,
759, 760, -762.
Dixon, Rev. Canon H. C., 350.
Dixon, B.A., Wellington, 674.
Doane, c.E., F. W. W., 689.
Doerksen, Rev. H., 775.
Doggett, John, 530.
Doherty, Rt. Hon. C. J., 85,
86-90, 142, 241, 355, 362,
364,-67, 455, 491, 492, 506.
Doherty, Hon. Manning, 235,
236, 239, 477, 493, 563-66,
568, 570, 635, 638, 817.
Doig, W. A., 653.
Dollar, A. Melville, 422.
Donahoe. A. J. H., 841.
Donald, Robert, 200, 202-04.
Donley, L. W., 750.
Donovan, C. A., 350.
Donovan, T. R., 310.
Doolittle, Dr. P. E., 442, 443.
Doran, W. L., 534.
Dougall, J. R., 553.
Douglas, G. H., 33.
Douglas, J. B., 688, 700.
Douglas, Wm. 205.
Downs, A. W., 847.
Dowse, Dr. C. B., 276.
Doyle, P., 307.
Doyon, Father, 607, 608.
INDEX TO NAMES
Draper, P. M., 90, 326, 370.
Draper, Hon. T. P., 252.
Dray ton, Hon. Sir Henry L.
26, 29-31, 41, 47, 151, 193
326, 360, 370, 500-02, 508.
Drink.water, C. Graham, 673.
Drouin, Napoleon, 664.
Drummond, Sir Jas. Eric, 82
Drury , Hon. E. C.. 91, 203, 209
225, 238, 239, 250, 317, 346
393, 396, 477, 479, 493
520, 521, 525-31, 535, 542
552, 558, 565, 574, 589, 592!
601, 603, 605, 607, 608,
612, 614, 616, 618-24, 626,
627, 630-34, 639, 742, 898.
Dubeau, M.D., Eudote, 675.
Dubee, Patrick, 427.
Ducie, 3rd Earl of, 249.
Dufault, Sergius, 649, 650.
Duff, Miss L. D., 582.
Duff, Justice L. P., 234.
Duff, Wm., 434, 459, 460, 519.
Duff-Stewart, Brig.-Gen. J. 340.
Dufferin and Ava, Marquess of.
275.
Duffy, C. Gavan, 281, 303.
Duffy, Hon. C. G., 735.
Dufresne, P. J., 659.
Dugal, Hon. L. A., 715, 719.
Duggan, E. J., 299, 303.
Duhig, Archbishop, 282.
Duncan, Maj. D. M., 750.
Duncan, Kenneth, 881.
Dun lop, John Alex., 228.
Dunlop, W. J., 598, 599.
Dunn, Sir James, 181, 188.
Dunn, Mrs. J. S., 898.
Dunne, Ex-Governor, 127.
Dunning, Hon. C. A., 492, 777,
780, 781, 783, 791, 792, 794,
800, 806, 807, 809, 812.
Dunstan, R. J., 387.
Duprey, Maurice, 759, 774.
Dupuis, J. Narcisse, 397.
Du Vernet, Most Rev. F. H.,
606-7
Dyer, D.S.O., Brig.-Gen., H. M.,
473, 480, 511.
Dysart, A. Allison, 724.
Earnle, Lord, 235, 236.
Eaton, Sir John, 606.
Eby, Rev. Frederick, 607.
Eddy, Mrs. E. B., 704.
Edgar, Sir E. Mackay, 253.
Edward VII, H.M. King, 163,
165.
Edward, Prince of Wales, H.
R.H., 164 67, 177, 178, 182,
221, 229, 860.
Edwards, Capt. E. J., 191, 193.
Edwards, C.B.E., George, 30.
Edwards, J. A. M., 776.
Edwards, Hon. J. W., 320, 487,
510, 572.
Edwards, R. C., 854.
Edwards, Hon. W. C., 328, 401.
Egan, M. F., 292, 295.
Eggleston, F. W., 79.
Elgin, Lady, 674.
Ellard, H. M., 499.
Elliott, Frank, 560.
Elliott, K.C., H. J., 653.
Elliott, Maj.-Gen. H. M., 549
Elliott, Mrs. James, 772.
Ellis, George, 738.
Ellis, J. A., 533.
Ellis, J. F., 901.
Ellis, M. K., 697.
Ellis, Preston, 737, 738.
Ellis, P. W., 209, 426, 534, 901.
Embury, Maj.-Gen. J. F. L.,
338.
Emmett, A. C., 745
Englehart, J. L., 535.
Esmonde, Osmonde, 309.
Esmonde, Sir T. Grattan, 309
Estlin, E. S., 545, 576.
Euler, W. D., 424, 492, 519
Evans, A. B., 39.
Evans, H. James, 744.
Evans, H. M. E., 859.
Evans, Dr. J. G., 354.
Evans, J. H., 743.
Evans, John, 807.
Evans, Sir L. Worthington, 107
Evans, W. Sanford, 898.
Everton, M.A., Rev. S., 776.
Ewart, K.C., John S., 76, 169,
170, 232, 245, 306.
Ewing, K.C., A. F., 253, 833,
837, 848, 852, 853.
Fairbairn, R. P., 571.
Fairfax, G. E., 200, 203.
Fairfield, W. H., 821.
Fairlie, T. W., 430.
Falconer, J. H., 879.
Falconer, Sir Robeit, 206, 223-
25, 253, 598, 600, 601, 603,
605, 898-9.
Fallen, Bishop M. F., 314, 593,
601.
Fa-ewell, Dr. A. E., 582, 583.
Farlinger, G. E., 627.
Fair, M. B., 60.
Farrell, G. W., 57.
Farrell, Dr. T. H., 606.
Farris, Hon. J. W. deB., 60,
203, 861, 863, 867, 868, 874,
877, 878, 808, 881, 887.
Farrow, A. G., 570.
Farrow, R. R., 132.
Fauteux, K.C., Guillaume Andre"
320, 451, 452, 481.
Fawcett, A. C., 724.
Fayolle, Marshal, 241, 316, 561,
Feisal of Arabia, King, 176.
Ferguson, C. C., 60.
Ferguson, M.D., G. R., 790.
Ferguson, G. V., 847.
Ferguson, Hon. Howard, 317,
541, 543, 544, 549, 550,
565, 573, 589, 613, 625-30,
632-34.
Ferguson, J. M., 592.
Ferraris, Senor, 83.
Ferris, Mrs. Elizabeth, 853.
Ferris, S. B., 841.
Fester, H. G., 531.
Fielding, Hon. W. S., 28, 141,
142, 150, 151, 233, 326,
355-57, 361, 458, 489, 519,
523, 688.
Filion, Mgr. M., 608.
Finch, Miss M. E., 771, 772.
Findley, Thomas, 491.
T?inegan of Kilmore, Bishop,
285.
Finlay, Viscount, 88, 235.
Finlayson, G. D., 56, 67.
Finlayson, H. H., 182.
Finley, Dr. F. G., 674.
Finley, W. C., 427.
Finn, Hon. R. E., 394, 688, 700
Firth, Sir Algernon, 236.
Fish, Stuyvesant, 49.
Fisher, A. E., 60, 61, 790, 797.
Fisher, George, 748, 757.
Fisher, Rt. Hon. H. A. L-, 231.
Fisher, Hon. Sydney A., 333.
?isher, K.B.E., Sir Thomas, 417.
Fisher, S. W., 394, 901.
FitzAlan, Lord, 267.
Fitzgerald, Prof. J. G., 599.
Fitzpatrick, Sir Charles, 654,
677.
Fitzpatrick, R. F., 530.
Flaherty, James A., 295
Flatt, Mrs. Margeret (C.E.), 808
Flavelle, Lady, 250
Flavelle, J. D., 551, 560.
Flavelle, Bart., Sir J. W 51
143, 250, 395-97, 401, 49o|
491.
Fleming, H. C., 807.
Fleming, K.C., O. E., 159.
Flenley, Prof. R., 231.
Fleming, Robert, 250
Fletcher, Joshua, 826.
Fletcher, Sir Lionel, 893.
Fletcher, Robert, 744, 772.
Flett, Miss, 749.
Flexman, D.S.O., E., 343.
Flynn, J. Harry, 348, 349.
Flynn, Dr. J. W.,673.
Foch, Marshal F., Ill, 120 675
Foley, Father, 593.
Foley, of Kildare, Bishop, 285.
Forbes, W. C., 128.
Ford, Henry, 499.
Fordney, Hon. J. W., 144, 148,
153.
Forke, Robert, 521, 750.
Forsyth, J., 866.
Fortier, Adelard, 653.
Fortier, J. Hughes, 652.
Fortin, Justice, 678.
Fortune, Rev. W. G. W., 880.
Foss, C. O., 715, 717.
Foster, E. D., 133.
Foster, Rt. Hon. Sir George E.
84, 86, 90, 141, 142, 193,
194, 253, 209, 315, 329, 355,
357, 367, 455, 492, 506, 552.
Foster, K.C., Senator G. G., 412,
427.
Foster, Hon. W. E., 460, 519,
711, 716, 720, 724, 728-30.
Found, W. A., 133, 137.
Fowler, C. P. L., 756.
Fowler, F. O., 754.
Fowler, R. A., 637.
Foy, K.C., C. J., 171, 307, 309.
Fox, E. C., 607.
Francoeur, Hon. J. N., 655.
Franklin, Sir John, 608.
Fraser, Dr. Alex., 608, 708.
Fraser, Colin, 792.
Fraser, James A., 697.
Fiaser, Lt.-Col. J. 7., 527, 582.
Fraser, Dr. M. S., 749.
Fraser, W. P., 561.
Fraser, W. W., 744.
Frederick the Great, 250.
Freiman, A. J., 186.
French, F. M. Lord, 169.
Freyer, M.A., C. E-, 674.
Friesen, Rev. H. J., 775.
Fripp, K.C., A. E., 361, 499.
Frith, Mrs. W. H., 808.
Frye, J. H., 374.
Fulthorpe, F. S., 584.
Gaby, F. A., 157, 609, 620.
Gaboury, Emile, 688.
Gagne, K.C., Horace J., 231.
Galbraith, Alex., 815.
Galbraith, H., 768.
ale, Mrs. Annie, 853.
Gale, G. Gordon, 425.
Gale, Mayor, R. H., 136, 308,
53, 864.
Galipeault, Hon. Antonin, 645,
646, 655, 656.
Gallagher, M. J.( 296.
Gallaugher, A. D., 812.
Gait, Justice A. C., 232, 471.
Gait, Sir A. T., 142.
Gander, George, 530.
Gandhi, M. K., 174, 176, 177,
178.
Gardiner, J. G., 812.
THE CANADIAN ANNUAL REVIEW
Gardiner, Robert, 367, 368.
Gai diner, W. C., 229.
Gardner, Obadiah, 154, 155.
Gari^py, D.D., Rev. N., 676.
Garland, E. J., 826.
Garneau, Sir J. Georges, 653.
Garner, D.S.O., Lt.-Col. A. C.,
789, 800.
Gaudet, Arthur J., 710.
Gaughran of Meith, Bishop, 285
Gault, C. E., 662.
Gauthiet, Georges, 653.
Gauthier, Rt. Rev. Dr. George,
675.
Gauthier, Joseph, 652.
Gauthier, K.C., L. J., 355, 357,
489.
Gavin, F. P., 587, 603.
Geary, K.C., G. R., 387.
Geddes, Sir Auckland G., Ill,
116, 122, 124, 126, 127, 144,
292, 670.
Genest, S. M., 601.
Geoffrion, K.C., Aime\ 232.
Geoffrion, L. P., 649.
George V, H.M. King, 122,
163, 165, 182, 200, 205,
207, 218, 221, 232, 253, 274,
275, 284, 295, 298, 299, 303-
06,311,365,436,721.
George W. D., 339.
George, W. K., 901.
George, W. H., 343.
Gernandt, F. J., 374.
Gibbon, J. Murray, 204, 409.
Gibbons, Cardinal, 280-1, 291,
292.
Gibson, Arthur, 564.
Gibson, L. A., 743.
Gibson, Lt.-Col. Thomas, 436.
Gibson, T. W., 576.
Giddings, Edgar C., 738.
Gifford, Charles, 755.
Gilbert, Prof. C. H., 894.
GUI, Prof. L. W., 329, 887.
Gillies, John, 607.
Gillis, F. A., 443.
Gilman, W. B., 710.
Gilmartin of Tuam, Archbishop
278, 279, 283, 285, 291, 298.
Gilmore, Rev. W. F., 607.
Girard, J. Emile, 649.
Gladu, Oscar, 368.
Glass, Hon. Carter, 125.
Glendenning, W. D., 52.
Glenn, R. B., 154.
Godfrey, Dr. Forbes, 628.
Godfrey, K.C., J. M.f 340, 392.
Godfrey, O. J., 788.
Goforth, W. Frank, 443.
Goggin, D.CX., D. J., 225.
Goldie, Lincoln, 468.
Goldman, Maj. C. S., 890.
Goltz, Mrs. H. L., 584.
Gomery, Percy, 864.
Good, W. C., 507, 527, 530.
Gooderham, Lt.-Col. A. E., 340
Gooderham, W. G., 51.
Goodman, A. E., 60.
Gordon, Sir Charles, 140, 901.
Gordon, George, 768.
Gordon, Senator Geo., 317.
Gordon, G. N., 367, 492, 519.
Gordon, D.S.C., J. L., 436.
Gordon, R. K., 847.
Gordon, Dr. Smith, 271.
Gorman, G. W., 843.
Gough, Prebendary, 898, 899.
Gouin, Sir Lomer, 200, 412, 454,
467, 481-86, 488-90, 510, 518,
519, 523, 640, 642, 650, 653,
665, 675, 688.
Gould, Rev. Canon, 677.
Gould, Benjamin Apthorp, 086.
Gould, O. K., 338.
Goulden, W. F., 804.
Gourlay, R. S., 901.
Grafton, Mr., 819.
Graham, A. Russell, 255.
Gahan, M.A., Frank, 252.
Graham, F. W.,61.
Graham, Hon. G. P., 492, 519,
523.
Gtaham, J. H. Castle, 53, 60.
Graham, R. G., 65.
Graham, R. H., 687, 688.
Giaham, R. J., 206, 607.
Graham, Maj. R. T., 812.
Graham, W. J., 58.
Grainger, M. A., 182.
Grant, Rev. A. S., 551.
Grant, Hon. H. R., 606.
Grant, Dr. H. Y., 534.
Grant, His Honour MacCal-
lum, 354, 440, 443, 687, 697,
705, 707.
Grant. Hon. R. H., 225, 585,
587, 589, 590, 592, 593, 603.
Grant, M.A., W. L., 233, 607.
Grassie, D.S.O., Lt.-Col. Wm.,
742.
Gray, Lt.-Col. A. C., 743.
Gray, A. W., 637.
Gray, V. Evan, 46, 56, 62, 6
Gray, W. M., 374, 375.
Gray son, J. H., 792.
Green, Hon. R. F., 455.
Greenfield, Hon. H., 821, 826,
829, 838, 842, 846, 848, 851,
855-57.
Greenlaw, F. H., 611.
Greenshields, Justice, 678.
Green way, J. F., 774.
Greenwood, Rt. Hon. Sir Hamar
263, 265, 267, 270, 290, 298,
303, 304, 306.
Greer, Rev. Richard, 606.
Gregory, W. D., 536, 545.
Greig, Sir Robert, 236.
Grey of Follodon, Lord, 92, 102,
164, 487.
Giey, C. C , 435.
Grierson, Hon. G. A., 740.
Griesbach, Brig.-Gen. W. A.,
253, 350, 455.
Grieve, A. R., 443.
Griffin, A. J., 159.
Griffin, Burwell, 607.
Griffith, Arthur, 261, 264, 271,
274, 297, 299, 303, 305.
Griffith, M.A., H. C., 607.
Griffith-Boscawen, Sir A., 235,
237.
Grigg, A. A., 545, 627.
Grigg, B. W. N.. 604.
Grills, H. S., 747.
Grosch, S. P., 787.
Grosjean, B.A., G. F., 677.
Groulx, Abb£, 171.
Groves, Mrs. W. E., 603.
Guerin, Hon. E., 675.
Guertin, Rev. L., 730.
Guild, J. B., 236.
Guild, Mrs. M. K., 744.
Gundy, J. H., 551.
Gundy, Judge W. E., 560.
Gunn, M.I,. A., Hon. Donald, 776
Gunn, Mrs. S. B., 827.
Guthrie, Sir Connop, 893.
Guthrie, Hon. Hugh. 214, 220,
318, 333, 337, 339, 355, 433,
434, 496, 497, 898.
Guy, George G., 159.
Guy on, Louis, 646, 669.
Gwatkin, Maj. -Gen. Sir W. G.,
433, 435, 436.
Gwynn, J. Crowther, 51.
Hadfield, C. M., 818.
Hagenah, W. J., 427.
Hagerman, S. H., 733.
Haggerty, Swanton, 797.
Haig, F. M. Earl, 174, 228, 229,
230.
Haig, K.C., J. T., 739, 741, 755
757, 759, 760, 762.
Haight, Mrs. S. V.,808.
Halcrow, G. G., 619.
Haldane, Viscount, 222.
Hales, K.C., James, 551, 560, 561
Halford, H. J., 533.
Haliburton, Sir T. C., 706.
Hall, Sir Daniel, 236.
Hall, Grant, 406.
Hall, J. B., 60.
Hall, R. R., 565, 639.
Halpenny, Dr. J., 750.
Halsey, Rear Adm. Sir Lionel,
164, 165.
Hamber, Eric, 862.
Ham el, Edouard, 654.
Hamelin, Joseph, 774.
Hamilton, Hon. C. M., 781,
783, 785, 796, 797.
Hamilton, D. S., 773.
Hamilton, F. C., 750, 756.
Hamilton, Kenneth A., 228.
Hamilton, Mrs. L. A., 551.
Hamilton, Perry, 228.
Hamilton, Dr. T. Glen, 775.
Hammill, J. T., 57.
Hanes, G. S., 873, 888.
Haney, M. J., 419.
Hanington, C. Lionel, 182-3.
Hanna, D. B., 389, 391, 392,
393, 414, 416, 417, 419, 862.
Hanson, M.P., Sir C. A., 205.
Hanson, K.C., R. B., 318, 368,
369.
Hanson, M.S., Roy, 804.
Harbottle, Mrs. H. A., 829.
Harcourt, Vivian, 39.
Hardie, R. F. S., 205.
Harding, R. T., 629.
Harding, Dr. Victor J., 598.
Harding, President W. G.,
80, 93, 106-08, 110, 111, 127,
128, 130, 144, 145, 146, 154,
288, 347, 580.
Hardy, A. C., 543.
Hardy, E. A., 225, 604.
Hare, G. G., 717.
Harewood, Earl of, 164.
Harkness, Rev. D. B., 750.
Harriman, H. T., 159.
Harrington, Ph.D., E. L., 804.
Harrington, John, 508.
Harris, G. F. R., 743.
Harris, Lloyd, 143, 205, 206,
209, 354, 433.
Hanis, Paul, 127.
Harris, P. D., 775.
Harris, Chief Justice R. E.,
705-07.
Harris, Sam., 119, 353, 354.
Harris, Very Rev. Dr. W. R.,
607.
Harrison, Col. E. F., 240.
Harrison, D.SC., F. C., 677.
Hart, Prof. A. Bushnell, 92.
Hart, Hon. John, 44, 861, 878,
881-84.
Hart, Governor L. E., 136.
Harte, Rev. F. E., 310.
Hartington, Lady, 248.
Hartington, Lord, 247, 248.
Harty of Cashel, Archbishop,
277, 279, 285, 291, 298.
Harvey, Chiet Justice, 253, 859.
Harvey, George, 126, 127, 131
Harvey, Sir John Martin, 183,
INDEX TO NAMES
ID"
Harwood, L. de Lotbiniere, 675.
Haslam, J. H., 45, 468.
Hastings, David, 548.
Hatch, A. F., 901.
Haultain, Sir Fred., 338.
Hausen, F.( 181.
Hawkes, Allan G., 807.
Hawkins, W. A., 340.
Hawkins, W. C., 430.
Hay, F. W., 543, 638.
Hay, Thomas, 395.
Hay don, Andrew, 456, 520, 605.
Hayes, C. A., 392.
Hayes, Archbishop P. J., 280,
282, 287.
Hays, C.M., 396.
Hazelton, Rev. Edward, 310.
Hazen, M.SC., Charles, 673.
Hazen, Sir J. D., 217, 340.
Hearst, Sir W. H., 154.
Hearst, W. R., 127, 130, 292,
295.
Heath, Charles, 62.
Heaton, Ernest, 552.
Hebden, E. F., 39.
Heenan, M.L.A., Peter, 632.
Heffernan, K.C., J. W., 849.
Hele, Carl C., 628, 629.
Hellmuth, I. F., 552. 555, 616.
Hellyer, Albert, 563, 537.
Hemmeon, Dr. J. C., 674.
Renders, R. C., 468, 473. 475,
Henderson, K.C., Alex., 891.
Henderson, Arthur, 235.
Henderson, R. J., 470, 472.
Henderson, Mrs. Rose, 306, 504
Hendrie, Col. Wm. 340, 555,
558, 559.
Hendry, W. A., 690.
Henry, Rt. Hon. Denis, 270.
Henry, Hon. G. S., 440.
Herbert, M.A., J. T., 804.
Herti, Dr. J. D., 899.
Hertz, Very Rev. Dr. J. H.,
186, 187.
Hertzog, General, 173, 174.
Hetherington, C. H., 677.
Hetherington, Hon. J. E.,
722, 723.
Kettle, J. O., 792.
He wart, Sir Gordon, 303.
Hewitt, Arthur, 545, 901.
Hicks, Andrew, 626.
Hicks, F. C., 159.
Higginbotham, H. 824, 826.
Hill, A. E., 750, 775.
Hill, M.L.A., H. P., 537, 544.
Hill, M.A., Prof. J. W., 776.
Hilliard, Thos., 60.
Hillocks, S. B., 852.
Hiltz, R. A., 705.
Hinchcliffe, M.L.A., Canon, 864.
Kingston, S.J., Rev. W. H., 676.
Hinton, Arthur, 663.
Hoadley, Hon. George, 814,
818, 833, 851, 853, 855-57.
Hoare, Sir Samuel, 100.
Hobson, A. J., 205, 206, 209.
Hobson, Robert, 391, 901.
Hocken, M.P., H. C., 312, 365,
596, 597, 679.
Hodgetts, C.M.G., Dr. C. A., 329
Hoey, R. A., 769.
Hofmeyr, J H., 223.
Holland, R. Rowe, 136.
Hollenden, Lord, 252.
Holmes, Judge George, 292.
Holmes, J. H., 804.
Holt, Andrew, 183.
Holt, Sir Herbert S., 48, 183,
406, 408.
Homuth, Karl, 625, 626.
Hoover, H. C., 93.
Hopkins, J. Castell, 204, 353.
Hopkins, M.A., Rev. L. H. C.,
806.
Hopkins, P. E., 576.
Home, General Lord, 113.
Home, Sir Robert, 126, 168, 214
Hose, C.B.E., Capt. W., 251,
433, 435.
Hoskin, K.C., Dr. John, 545, 561
Howard, John, 694.
Howard, T. P., 901.
Howe, Hon. F. C., 292.
Howe, M.A., Prof. Joseph E., 776.
Howes, E. A., 815.
Hrynorizuk, N. A., 775.
Hubbs, John, 517.
Hudson, K.C., A. B., 493, 510,
519, 520.
Hudson, R. S., 51.
Hughes, Chas. E., Ill, 114, 115,
117, 122.
Hughes, H. J., 157.
Hughes, Brig-Gen. H. T., 241.
Hughes, LL.D., J. L., 133, 225.
Hughes, Katherine, 306, 307.
Hughes, Maj.-Gen. Sir Sam
340. 361.
Hughes, Rt. Hon. W. M. 79,
93, 97, 101, 106, 110, 118,
171, 214, 216, 217, 255, 280,
444.
Hull, H. H., 832.
Hungerford, S. J., 391.
Hunt, K.C., Theo., 775.
Hunter, T. B., 321.
Hunter, W. H., 64.
Huntsman, Dr. A. G., 133.
Huot, Mr., 645.
Kurd, Archibald, 104,
Husband, W. W., 134.
Hutcheson, J. E., 427.
Hutchings, E. F., 754.
Hutchinson, Percy, 181.
Hutton, G. H., 153.
Hutton, Maurice, 225.
Hyde, P. L., 793.
Hylan, Mayor, 286, 287.
Hyman, Hon. C. S., 461.
Hymans, H., 83.
Hyndman, Hon. J. D., 468, 469?
471,472,828,859.
Ibrahim Hilmy, Prince. 179.
Idington, Mr. Justice, 832.
Inch, John, 733.
Irvine, Sir William, 79.
Irvine, William, 493, 511, 731,
737.
Irwin, Robert, 698.
Isard, F. S., 419.
Islington, Lord, 252.
Ivens, William, 759-61, 766.
Iverach, William, 803.
Ives, Hon. W. C., 828.
Iyer, Govind Araghava, 178.
Jackman, Prof. W. T., 567, 569,
841.
Jackson, G. N., 134-749.
Jackson, Gordon B., 353, 354.
Jackson, M. B., 878.
Jackson, R. S. Ward, 200, 202.
Jackson, Hon. W. E., 193, 194.
Jacobs, K.C., S. W. 338, 434,
487, 510, 672.
Jaffray, J. A., 829.
James, I. King, 272, 706, 707.
James, M.A., H. R., 606.
James, Maj. Clarkson, 636.
Jamieson, Col., 253.
Jamieson, Clarence, 328, 329.
Jar vis, ^milius, 352-54.
Jeffrey, J. J., 692.
Jeffries, A. W., 159.
Jellicoe, Admiral Lord, 254.
Jenkins, John, 62.
Jennings, Milton R., 829.
Jessop, William, 899.
Jevons, F. B., 223.
Johns, R., 759.
Johnson, K.C., A. M., 879.
Johnson, F. N. G., 674
Johnson, R. D., 613.
Johnson, M.P., R. M., 520, 521.
Johnson, Hon. T. H., 440, 750.
776, 775.
Johnson, W. E., 553, 555.
Johnson, W. J., 625.
Johnston, J. F., 358.
Johnston, Mayor J. J., 864.
Johnston, B.A., K. P., 605.
Johnstone, Thomas, 271.
Jolliffe, M.A., Prof. R. O., 605.
Jones, C. H. L., 58.
Jones, H. E-, 813.
Jones, H. V. F., 37, 225.
Jones, J. D., 374.
Jones, J. W., 870, 884.
Jones, Thomas, 303.
Jones, Senator Wesley L-, 138
Jordan, A. A., 603.
Joseph, Mrs. Henry, 318, 502.
Joshi, Prof. S. L., 255.
Joubert, Paul E., 901.
Joy, A. B.. 860.
Joy, John T., 695.
Joyce, Simon, 698.
Julien, J. E., 57.
Jung, Sir Shamsher, 166.
Kains, Archibald, 47.
Karr, Dr. W. J., 585.
Kato, Viscount, 108.
Kay, B.C.I,., W. F., 672.
Keane, Archbishop J. J., 282,
292,
Kearns, William, 328.
Keefe, John, 869.
Keefer, F. H., 364, 423.
Kellaher, J. K., 689, 690.
Kellaway, M.P., Rt. Hon. F. G.,
181, 204, 444.
Kelley, Howard G., 397, 398 ,
400, 402, 491.
Kelley, Russell T., 440.
Kellog, M.A., Chester E., 705.
Kelly Archbishop, 277, 282.
Kelly, Maj. M. A., 296.
Kemmis, J. H. W. S., 837.
Kemp, Sir Edward, 455,901.
Kempton, Austen T., 705.
Kendall, Dr. H. E., 709.
Kennedy, C. W. N., 750.
Kennedy, John B., 295.
Kennedy, Sir John, 607.
Kennedy, Hon. W. C., 378,
519, 523.
Kennedy, W. W., 470.
Kent, A. Barton, 206.
Kent, John G., 137.
Kensit, H. E. M., 716.
Kenyon, Lord, 222.
Kerbaugh, H. S., 613.
Kerby, Rev. W. J., 719.
Kergin, H. F., 881.
Kermode, F., 867.
Kerr, Adm. Lord Walter, 280.
Kerr, W. F., 789.
Ketcheson, E- R., 793.
Keynes, Maynard, 125.
Kidd, George, 439.
Kidd, Mgr. J. K., 607, 608.
Killam, S. D., 847.
Kilborne, J. M., 42. "
Kilby, W. E., 182.
Killaloe, Bishop of, 266.
King, Mrs. C. A., 733.
King, F., 605.
King, Hon. J. H., 71, 863, 864,
878, 881.
King, Di. R. L-, 790.
King, Wallace, 245.
33
THE CANADIAN ANNUAL REVIEW
King, Hon. W. L. Mackenzie,
91, 141, 143, 150, 184,
194, 200, 211, 241, 248,
328, 331-33, 364, 356, 357,
362, 365, 367, 369, 380,
434, 446, 453, 455, 464,
481, 482, 487, 490, 495-97,
500, 503, 505-08, 517-22,
543, 632, 688.
Kingsford, K.C., R. E., 201.
Kingsmill, Rear Admiral Sir
Charles E., 351, 555.
Kingstone, George A., 532.
Kinnear, Maj. G. S., 732.
Kippen,J.D.G.,39.
Kirby, C. C.( 717.
Kirby, Geo. P., 63.
Kirchwey, George W., 292.
Kirwan, Hon. J. W., 201.
Kittridge, James, 470.
Kneeland, Dr. E. W., 39.
Kneeland, W. A., 669.
Knight, K.C., James A., 697.
Knowles, H. G., 128, 289.
Knowles, Hon. W. E., 780.
Knox, Hon. P. C., 151.
Krippene, H. P., 128.
Kristjanssen, A. E., 739, 775.
Laboreau, Abbe", 608.
Lacombe, M.L.A., Aurele, 647.
Lafleur, K.C., Eugene, 232, 402,
672.
Lafleur, M. D., Henri A., 673.
La Follette, Senator R. M.,
288, 289.
Lafontaine, Hon. Euge'ne, 675.
Laidman, W. F., 896.
Laing, B.A., G. J., 673.
Laing, Dr. S. E., 749.
Laird, D. H., 606.
Lake, K.C.M.G., Sir R. S., 777.
Lalor, M.P., F. R., 548.
Lamb, J. H., 841, 859.
Lamb, J. J., 788.
Lambert, Alfred, 411.
Lambert, Jos, 368, 683.
Lambert, Norman P., 33, 367,
770, 775, 807, 896.
Lamothe, Hon. J. B. G., 675.
Lancefield, A. R., 898.
Landry, Hon. D. V., 721.
Landry, Rene W. E., 697.
Lane, George, 146.
Langford, Mrs. F., 853.
Langley, George, 383, 494, 521,
777, 780, 781, 782, 786-88,
806, 807, 812, 813.
Langley, W. H., 355.
Langlois, Godefroi, 653.
Langmuir, A. D., 51.
Langmuir, J. W., 51.
Langton, Brig.-Gen. F. S., 350.
Langton, H. H., 598.
Lannin, W. J., 560.
Lansdowne, Lord, 95.
Laporte, Sir Hormisdas, 658.
Lapointe, Ernest, 85, 141, 331,
351, 355, 368, 373, 459,
481, 510, 519, 523.
Larson, Bernhard, 812.
Larson, O. J., 157.
Lascelles, Lt.-Col. the Viscount,
164.
Lash, K.C., Z. A., 57.
Latchford, Hon. F. R., 626, 628.
Latta, Hon. S. J., 440, 780, 781,
784, 794, 802, 812.
Lauder, Sir Harry, 131, 899.
Laughnan, D., 511.
Laureys, Henri, 37, 675.
Laurier, Lady, 333, 504.
Laurier, Sir Wilfrid, 246, 333,
396, 446, 456, 459, 482, 483,
485, 487, 489, 492, 518, 519.
Lausanne, M. Stephane, 116.
Lavergne, Armand, 171, 307,
309, 481, 488.
Lavigueur, H. E., 374.
Law, Rt. Hon. A. Bonar, 141,
169, 263.
Laws, Mrs. H. L., 584.
Lay ton, Lt. F. P., 242.
Lea, R.S., 157,613.
Lea, Hon. W. M., 736.
Leacock, Prof. Stephen, 255,
554, 674.
Leader, Harry, 480.
Leamy, J. M., 746.
Leavitt, Clyde, 182.
LeBlanc, Bishop, 721.
LeBlanc, Henry S., 698.
Leckie, D.S.O., Lt.-Col. R., 433.
Leckie, Maj. Gen. R. G. E.,
350, 891, 892.
LeCaron, Father Joseph, 607.
Lee, Bishop, 95.
Lee, Dr., 809.
Lee, George W., 535.
Lee, M.A., R. W., 673.
Lee, W. T. J., 592.
Lee of Fareham, Lord, 115,
122, 124, 168, 214, 235, 249.
Leech, R. E. A., 790.
Leffingwell, F. S.,833.
Legh, Capt. Piers, 165.
Lemay, J. H., 659.
Lemieux, J. P. C., 652.
Lemieux, Hon. R., 30, 142, 143,
155, 184, 194, 212, 241,
332, 355, 358, 365, 368, 459,
460, 481, 482, 486, 487, 489,
490, 510, 519, 522.
LeMoyne, Miss G., 653.
Lenine, Nicolai, 18, 460.
Lenroot, Senator, 92.
Leonard, Lt.-Col. R. W., 241,
604.
LeRoy, Osmond Edgar, 673.
Leslie, Shane, 298.
Lethbridge, J. G., 611, 614.
L£tourneau, Hon. S., 655.
LeVatte, Hon. H. C., 688, 698.
Levert, J. B., 580, 583.
Levison, E. R., 57.
Lewis, M.L.A., Maj. A. C., 159.
Lewis, G. F., 66.
Lewis, Harry K. 697.
Leys, T. W., 200.
Lick, Elmer, 582, 583.
Lighthall, W. D., 670, 674.
Lincoln, A., 308.
Lindsay, R. C., 126.
Lindsay, M.B., W. S., 804.
Lister, J. G., 886.
Little, Dr. J. N., 749.
Lloyd, Sir Francis, 165.
Lloyd George, Mrs. D., 221.
Lloyd George, Rt. Hon. D.,
80, 81, 97, 101, 103, 105, 106,
116, 126, 127, 179, 200,
210, 214, 221, 252, 253, 265,
267, 270, 287, 288, 295, 297,
299, 301-04, 311, 312, 688.
Lobdell, C. E., 45.
Locke, M.A., Geo. H., 137.
Locke, P. C., 743.
Loder, Dr., 85.
Lodge, Senator H. C., 122, 289.
Lodge, Sir Richard, 223.
Logan, K.C., H. J., 384, 394, 492
Logan, James J., 797.
Logan, Dr. J. D., 730.
Logic, Mr. Justice, 630.
Loggie, i.s.o., T. G., 713.
Logue, Cardinal, 276, 277, 279-
85, 291, 298, 304.
Londonderry, Marquess of, 275
Long, W. E., 52, 53.
Long of Wexford, Viscount, 419
Loomis, Maj .-Gen. Sir F. O. W. ,
350.
Lorne, Lord, 249.
Lorrain, Leon, 206.
Lougheed, Sir James, 132, 145,
327, 342, 357.
Lovett, K.C., H. A., 402.
Lovett, Robert Morse, 292.
Low, Hon. T. A., 523.
Lowe, B.A., John, 228.
Lowry, J. E., 748, 762.
Lowther, M.P., Rt. Hon. J. W.,
183, 184, 358,899.
Lucas, K.C., Hon. J. B., 609.
Lucas, John W., 819.
Lukin, Sir H. T., 229.
Lyford, P. L., 893.
Lynch, Diarmuid, 295.
Lynch, F. C. C., 327.
Lynch Staunton, Senator, 546.
Lyttle, R. Clements, 312.
Lytton, Earl of, 251.
McAra, James, 346.
Me Arthur, Dr. D. A., 606.
McBrien, C.B., Maj.-Gen. J. H.,
338, 337.
McCaig, James, 829.
McCain, Scott, 733.
McCall, B.A., F. S., 847.
McCall, D.S.O., Capt F. T., 435
McCallum, C.E., A. F., 615.
McCallum, Miss Maiy, 479,
480.
McCarthy, D'Alton, 142.
McCarthy, Hon. M. S., 827,
832,
McCaul, F. S., 252.
McClelland, John, 226.
McClung, Mrs. Nellie L.,
849, 850, 853.
McColl. Arch, 686.
McColl, R., 692.
McConnell, J. H., 756-7.
McConnell, J. W., 427.
McCord, David Ross, 670.
McCormick, Medill, 289.
McCrea, Charles, 541, 626, 629 .
McCrae, Piof. J. O., 606.
McCreary, James, 628.
McCreath, Robert, 253.
McCuaig, Brig.-Gen. G. E., 670
McCudden, Mrs. A. E., 242.
McCttllough, Lt.-Col. C. R., 898
McCullough, C.B., R. W., 690.
McCurdy, Hon. F. B., 321, 394,
451, 510, 707.
McCurtain, Lord Mayor, 263.
McCutcheon, J. M., 536.
McDermid, K. C., 607.
McDonald, D. D., 756.
McDonald, Mrs. E. W., 252.
McDonald, Brig.-Gen. H. F.,
338.
McDonald, S. J., 583.
McDonald, W. R., 654.
McDougall, G. D., 686.
McDougald, Dr. W. L., 419.
McGreer, K.C., G. G., 384.
McGill, Hon. James, 669.
McGillivray, A., 745, 832.
McGrath, Sir Patrick, 190, 191,
200.
McGrath, T. S., 796.
McGregor, Gordon M., 39.
McGuigan, F. H., 392.
McGuire, Martin, 717.
McHardy, Mayor C. F., 864.
McHugh, John, 48.
Mclnnes, K.C., Hector, 402.
Mclnnes, Dr., 749.
Mclnnis, B.A.. J. A , 606.
Mclntosh, Lady Maude, 247
Mclntosh, P. J., 427.
Mclntyre, Dr. Daniel, 773.
Mclntyre, J. M., 427.
Mclntyre, W. A., 773.
Mclsaac, James, 356.
McKay, Hon. Mr. Justice, 804
McKay, K.C., Robert, 616.
McKay, W. C., 813.
McKeand, Maj. D. L., 328.
McKeen, John, 696.
McKelvie, M.P., J. A., 820.
McKenzie, Nursing Sister, 242
McKenzie, D. G., 769.
McKenzie, F. J. A., 869.
McKenzie, Capt. Ian, 870.
McKenzie, M. E., 570.
McKenzie, W. A., 866.
McKenzie, c.B., W. B., 695.
McKergow, Prof. C. M., 673.
McKillican, W. C., 768.
McKinnell, W. C., 760, 761.
McKinney, M.L.A., Mrs. L. C.,
368, 853.
McKinnon, J. S., 900.
McKinnon, W. L., 787.
McLaren, Col. John I., 535.
McLean, A. J., 854.
McLean, W,.B., S. J., 381, 384.
McLean, W. A., 572.
McLelland, T. E., 607.
McLennan, A. R., 849.
McLennan, Prof. J. C., 435.
McLennan, Senator J. S., 412.
McLennan, Lester W., 228.
McLennan, R. P., 890.
McLeod, H. F., 368.
McLeod, Prof. J. J. R., 224.
McLimont, A. W., 428, 747.
McMaster, K.C., A. R., 338, 351,
355, 358, 391, 434, 460, 672.
McMaster, R.H., 39.
McMicken, Hon. Gilbert, 776.
McMillan, C. W., 768.
McMillan, J. A., 812.
McMillan, R. J., 583.
McMillan, Thomas, 567.
McMullen, W. J. N., 790.
McMurray, J. R.,
McMurray, T. J., 367.
McNab, Hon. A. P., 781. 785.
McNab, D. C., 784.
McNamee, G. A., 440.
McNaughton, Mrs. John, 808.
McNeal, Mrs. Ida, 808.
McNeil, Jane, 701.
McNeil, Archbishop N., 593-
95, 597, 607, 899.
McNeil, Dr. Neil, 705.
McNeill, A. S., 686.
McNeill, M.A., Prof. J. T., 605.
McNeill, Lachlan, 756.
McNichol, D.C.M., Gordon R.,
348, 349.
McPhail, A. C., 768.
McPherson, Hon. C. D., 740,
744, 746, 747.
McPherson, K.C., E. A., 750.
McPherson, O. L-, 853, 855.
McPherson, K.C., R. U., 548.
McPherson, K.C., Hon. W. D.,
312.
McQuay, J. W., 757.
McQueen, Rev. Dr. D. G., 253
McRobert, Sir Alex, 205, 209.
McSweeney, Edward F., 295.
McTaggart, Neil, 799.
McWhinney, Bombardier, 242
McWilliams, Mrs. R. F., 750.
MacAllirter, Sir Donald, 223
898.
MacBrien, Maj.-Gen. F. G., 435
MacCarron, Kitty, 272.
MacDonald, Bishop, 313.
MacDonald, Judge Allan, 689.
MacDonald, Sergt. A. V., 242.
INDEX TO NAMES
MacDonald, Angus G., 705.
MacDonald, D. H., 793.
MacDonald, Dr. K. C., 874,
881.
MacDougall, K.C., G. W., 653.
MacFarlane, C. J.. 901.
MacGougan, B.A., A. G., 804.
MacGregor, Hon. R. M., 688,
700.
Macllreith, R. T., 695.
Macintosh, William, 730.
MacKay, U..D., A. H., 703, 704.
MacKay, M.D., Alex., 534.
MacKay, A. T., 696.
MacKay, H. M., 674.
MacKay, Ian A., 674.
MacKay, R. H., 691.
MacKelvie, J. A., 356.
MacKendrick, Lt.-Col. W. G.,
249.
MacKenzie, Colin, 697.
MacKenzie, D. C., 687.
MacKay, K.C., W. B., 694.
MacLean, J. A., 775.
MacLean, Hon. J. D., 866, 873,
881, 885.
MacLean, Rev. J. N., 790.
MacMillan, Prof. J. W., 531.
MacMillan, N. T., 750.
MacMillan, Thos., 44.
MacMurchy, K.C., Angus, 708.
MacNamara, Joseph, 634.
MacNeil, C. G., 181, 343, 345,
348, 349, 490.
MacPhail, Miss Agnes, 478,
504, 511, 521, 580, 584, 638.
MacRory, Bishop, 290.
MacSwiney, Lord Mayor, 287.
MacSwiney, Mrs., 293.
MacSwiney, John, 305.
MacSwiney, Miss Mary, 293,
271.
Macalister, K.C., A. W. G., 653
MacaUum, Dr. A. B., 673.
Macarow, D. C., 39, 41.
Macdonald, C. S., 750.
Macdonald, E. M., 394, 492.
Macdonald, Rev. Dr. J. Bruce,
545, 603.
Macdonald, Rev. J. Bruce, 545,
603.
Macdonald, Justice H. Y., 798
Macdonald, Sir John, 446.
Macdonald, J. W., 698.
Macdonald, K.C., M. A., 60, 876
Macdonald, Mr. Justice J. A.,
879.
Macdonald, P. A., 748.
Macdonell, K.C.M.G., Maj.-Gen.
Sir A. C., 335, 337, 603.
Macdonell, J. M., 121.
Macgillivray, Dugald, 708.
Machin, Stanley, 205, 206.
Mackay, Hon. A. G., 832.
Mackay, Dr. A. H., 226.
Mackay, M.A., C. A., 704.
Mackenzie, Prof. C. J., 805.
Mackenzie, Hon. D. D., 366,
492, 523.
Mackenzie, H. B., 40, 41, 42.
Mackenzie, Ian, 881.
Mackenzie, K.C., P. E., 804.
Mackenzie, Sir T., 205, 206, 209
Mackenzie, W. A., 388.
Mackenzie, Sir Wm., 396, 426,
608, 609.
Mackinder, Sir H. J., 253.
Mackinnon, His Honour Mur-
doch, 736.
Maclean, Hon. A. K., 328, 355,
358, 362, 510, 519, 689.
Maclean, K.C., Donald, 793, 809
Macklem, Rev. Dr. T. C.
Street, 553, 606.
Maclennan, Justice F. S., 36.
Macmaster, K.C., Sir Donald,
188, 679.
Macmillan, A. S., 690.
Macnamara, Dr., 252.
Macready, Sir Nevil, 270, 299.
Magee, Col. A. A., 120.
Magee, Hon. Fred, 728.
Magee, R. A., 812.
Magnan, C. J., 667, 668.
Magrath, C. A., 143, 154, 821.
Maguire, Rev. C Wesley, 310.
Maharg, Hon. J. A., 152, 369,
521, 777, 780, 781, 783, 794,
796, 806-08, 812, 821.
Mahon, Admiral A. T. 270,.
Mahoney, T. J., 563, 564.
Major, William A., 697.
Malcolm, Hon. G. J. H., 743,
744, 766, 768.
Malcolm Hon. H., 193.
Manion, Hon. R. J., 320.
Mannix, Archbishop, 280, 281,
287.
Manson, Hon. Alex. M., 870.
Marcil, Hon. Charles, 200.
Margeson, Lt.-Col. J. W., 343.
Marker, C. P., 814, 847.
Markievicz, 297.
Marler, Maj. H. M., 454, 485,
487, 672.
Marnoch, G. R.,821.
Marois, Felix, 651.
Marquis, G. E., 649, 650, 669.
Marriott, Charles, 194, 205, 206
209, 530.
Marsh, J. F., 349, 348.
Marshall, Hon. Duncan, 164,
236, 238, 239, 462, 463, 510,
770, 814, 817, 850, 854.
Marshall, C.B.B., Mrs. Ord, 225
Marshall, T., 614.
Martin, J. C., 791.
Martin, Lt.-Col. L. T., 535.
Martin, Hon. Mede"ric, 658, 659
Martin, Hon. W. M., 492, 493,
777 778, 780-83, 793, 798,
800-03, 808, 809, 811-13.
Mary, H.R.H. Princess, 164,
409.
Mary, H.M. Queen, 163, 221,
274, 409.
Marx, Karl, 18.
Mason, Lt.-Col. D. H. C., 249
Massey, John, 51.
Massey, Vincent, C., 91.
Massey, Rt. Hon. W. F., 94,
97, 101, 106, 110, 118, 171,
212, 688.
Massie, Lt.-Col. J. C., 548.
Massingham, H. W., 266.
Masten, Mr. Justice, 69.
Matheson, Archbishop, 775.
Matheson, F. C., 564,
Mathews, A. E., 421.
Mathieu, J. A., 629.
Maxwell, R. B., 228, 229, 345,
347, 348.
Mayor, J. Stewart, 829.
Mayrand, W. J., 199.
Meath, Capt. C. W. E., 533.
Meighen, Mrs. A., 220, 221.
Meighen, Rt. Hon. A., 77,
78, 81, 91, 100, 101, 104,
106, 107, 109, 121, 131, 139,
142, 155, 169, 171, 174,
184, 186, 200, 201, 210, 212,
214, 215, 217-21, 239, 241,
248, 249, 310, 315, 317-21,
343, 352, 355, 356, 362-65,
367-69, 371, 373, 380, 381,
395, 400, 401, 409, 445, 446,
449, 451-56, 458-60, 462-64,
466, 472, 473, 483-91, 496,
THE CANADIAN ANNUAL REVIEW
501, 503, 504, 506-10, 517,
518, 524, 543, 601, 631-33,
688, 712, 740, 741, 837, 860,
898, 901.
Mellard, Mrs. Marie, 853.
Mellish, Hon. H., 689,
Mellon, A. W., 126.
Melvin, Dr. G. C., 719.
Mercer, Maj.-Gen. M. S., 242,
318.
Merchant, Dr. F. W., 585-87,
601, 602.
Mercier, Cardinal, 279, 280.
Mercier, Mr. Justice, 678.
Mercier, Hon. Honore", 648,
649, 655.
Mercier, L. P., 652.
Meredith, Sir Vincent, 23, 36,
102.
Meredith, Sir W. R., 545, 561.
Merkley, Charles, 583.
Merriman, A. W., 117.
Mersereau, Hon. D. W., 712,
720, 726.
Metayer, K.C., Alphonse, 647.
Mewburn, Lt.-Col. F. H., 847.
Mewburn, Hon. S. C., 241.
Michaud, Hon. J. E., 461, 711,
726.
Middleton, Prof. J. J., 599.
Middleton, Justice W. E., 582.
Midleton, Earl of, 298, 299.
Miers, Sir Henry A., 223.
Miles, Henry, 662.
Millen, Hon. E. D., 253.
Miller, F., 426.
Miller, F. R., 609.
Miller, Dr. J. C., 587.
Miller, J. N., 649.
Miller, D.D., J. O., 607.
Miller, Governor N. L., 160.
Milliken, R. H., 811.
Mills, David, 142.
Mills, George, 833.
Mills, Hon. Henry, 576, 635.
Milner, Lord, 168, 179, 252.
Minto, Lieut. The Earl of 168.
Mitchell, A. J., 391, 397-8.
Mitchell, C. H., 691, 715.
Mitchell, C.B., Brig.-Gen. C.
H., 121, 137, 249, 600, 615.
Mitchell, Hon. C. R., 837, 838,
839, 840, 854.
Mitchell, James Cobden, 796.
Mitchell, J. C., 890.
Mitchell, J. W., 25, 136.
Mitchell, P. H., 691, 715.
Mitchell, Lt.-Col. W. C., 350.
Mitchell, K.C., Hon. W. G.
481, 486, 489, 510, 519,
643-45, 648, 656, 658-61, 672.
Mitchell, Wm. 243.
Mitchell, Brig.-Gen. Wm. 432.
Moffat, M.A., Rev. A., 226.
Moffatt, William, 35, 38.
Moffet, R. J., 788.
Mohani, Hasral, 178.
Monahan, M., 307.
Monck, F. L., 62.
Mondou, A. A., 368.
Monet, M.L.A., Amedee, 171,
659.
Montagu of Beaulieu, Lord, 437
Montgomery, Dr. E. W., 749.
Montmorency, G. F. de, 165
Montpetit, Edouard, 223, 224,
675.
Monty, Hon. R., 320, 451, 481.
Moodie, Lt.-Col. J. R., 39, 430.
Moon, G. M., 183.
Moore, Bassett, John, 88.
Moore, G. Cecil, 56.
Moore, Tom, 90, 370, 371, 373,
375, 555.
Moorhouse, F. L-, 206.
Morden, M.P., W. Grant, 181,
204.
Moreau, M.I,. A., Emile, 647.
Moreton, Hon. Sir Richard, 249
Morgan, B. H., 184.
Morgan, Col. R. B., 165.
Morgan, T., 228.
Morgan, T. M., 807.
Morin, Rev. Louis Joseph, 675
Morin, B.C.L., L. S. R., 672.
Morin, Victor, 653.
Morison, Prof. J. L., 231.
Morison, Sir Theodore, 223.
Morkin, James I., 750.
Morley, Lord, 265.
Morley, F. G., 205.
Morphy, H. B., 357.
Morris, Lord, 236.
Morrison, J. J., 477, 478, 493,
507, 521, 526-28, 579, 580,
582, 779.
Morrison, Maj. W. J., 348.
Morse, K.C., Dr. Charles, 708.
Morse, F. Morton, 428.
Morson, Judge, 561.
Mortimer, George, 340.
Mosher, A. R., 386.
Moshier, Lt.-Col. H. M., 847
Mothersill, J. D. O., 847.
Motherwell, Hon. W. R., 463,
592, 510, 519, 523, 779, 794,
797.
Moulton, Lord, 678.
Mount Stephen, Lord, 255, 405,
406.
Mowat, Arthur, 253.
Mowat, H. M., 357, 455, 630.
Muir, Colin, 896.
Muir, E. H., 740.
Muir, W. C., 393
Muller, B.A., C. E., 804.
Mullett, Merrick. H. J., 95.
Mulock, D.S.O., Fl. {Com., Red-
ford H., 436.
Mulock, Chief Justice Sir Wm.,
545, 561.
Mulvey, K.C., Thos., 326.
Mundelein, Archbishop, 282.
Munro, D.D., Rev. J. E., 776.
Munroe, Prof. Henry, 704
Murch, W. H., 604.
Murdock, Hon. James, 479,
504-07, 523.
Muiphy, Mr. Justice, 879, 887.
Murphy, Hon. Charles, 355,
359, 362, 461, 481, 519, 523.
Murphy, K.C., D. R., 665.
Murphy, I. H. J., 748.
Murray, Rev. Father Athol, 607
Murray, Hon. H. G., 492, 687,
688, 694, 695, 702, 707.
Murray, Mrs. G. H., 416.
Murray, J. R., 470, 757, 770.
Murray, R. H., 688.
Murray, Robert, 719.
Murray, Thomas, 781.
Murray, K.C., T. J., 750.
Murray, President W. C., 802
Musgrave, C. E., 205.
Musselman, J. B., 383, 494,
780, 781, 806-08, 896.
Mustard, W. P., 601.
Myers, R. H., 55.
Nair, Sir C. Sankaran, 223.
Nantel, Hon. W. B., 381, 384.
Nanton, Sir Augustus, 408,
428, 747.
Nasmith, Lt.-Col. G. G., 240.
Needham, Joseph, 804.
Neely, H. B., 638, 639.
Neil, C. E., 47.
Nelson, A. P., 159.
Nelson, John, 202.
Neolin, M.A., T. A., 803
Nesbitt, E. W., 357.
Newcombe, K.C., E. L., 397, 402
Newlands, H. C., 845, 846.
Newlands, His Honour W. H.,
337, 777, 793.
Newson, W. V., 842.
Newton, S. T., 944.
Nichol, His Honour W. C.,
869, 872.
Nichol, Mrs. Walter, 247.
Nicholls, Senator T., 608.
Nicholson, D. R., 709.
Nickerson, M. H., 687.
Nickle, Mayor W. F., 553, 605.
Nicol, K.C., Hon. Jacob, 645, 652
Nicol, Rev. John L., 791.
Nielson, W. A., 292.
Nixon, Hon. H. C., 533, 534,
635.
Nobbs, M.A., Percy E., 241.
Noble, Miss Isabel, 815.
Noble, W. H., 843.
Nolin, J. L., 813.
Norcross, J. W., 419.
Norfolk, Duke of, 169, 274.
Norman, Sir Henry, 443.
Normand, M.D., Hon. L. P.,
320, 451, 453, 481, 489.
Normandeau, Emile D., 649.
Norris, G. W., 45.
Norris, Senator G. W., 127, 289
Norris, Hon. T. C., 740. 741,
742, 744, 766, 898.
Norsworchy, Maj. S. C., 41.
North, Dudley, 165.
Northcliffe, Lord, 163, 184, 188
204.
Northumberland, Duke of, 248
Norton, G. P., 429.
Norwood, R. W., 705.
Novar, Viscount, 231.
Noxon, W. C., 181, 183, 204,
255, 545, 566.
O'Brien, Bishop, 593.
O'Brien, K.C., A. H., 562.
O'Callaghan, D. J., 293.
O'Callaghan, Mrs. 297.
O'Ceallaigh, Cean, 282.
O'Connell, Daniel, 301.
O'Connell, Cardinal, 282.
O'Connor, J. C., 328.
O'Connor, K.C., W. F., 506, 507
O'Donnell of Raphoe, 285.
O'Flanagan, Rev. Michael, 288
O'Flynn, E. D., 346.
O'Grady, Mgr., 281.
O'Hara, F. C. T., 327.
O'Hearn, K.C., W. J., 697.
O'Leary, Bishop, 309, 314.
O'Leary, Grattan, 78, 101, 102,
217.
O'Mara, Stephen, 287.
O'Meara, Principal, 607.
O'Neill, Hugh, 309.
O'Neill, M.I..A., John, 592, 593,
611,614.
O'Sullivan, O.B.B., R. B., 343.
Odium, C.B., Brig.-Gen. Victor,
511.
Oliver, Albert, 898.
Oliver, Rev. D. M., 812.
Oliver, Edward, 795.
Oliver, Dr. E. H., 805.
Oliver, Hon. Frank, 253, 462,
510.
Oliver, Hon. John, 440, 492,
828, 859-61, 869, 873, 876,
880, 881, 887, 888, 897.
Olzendam, R. M., 374.
Orchard, W. J., 807.
Orr- Lewis Lady, 42.
Orr- Lewis Sir F., 39, 42.
Orr, Dr. W. R., 608.
INDEX TO NAMES
*•
ft
Osborne, Lt.-Col. H. C., 241.
Osborne, Prof. W. F., 234, 246.
Osier, Sir Edmund B., 340, 406.
Osier, K.C., Glyn, 387.
Ottewell, Prof. A. E., 847.
Outerbridge, E. H., 161.
Owen, Sir Samuel, 223.
Owens, T. P., 365.
Oxton, S. C., 744, 745, 750.
Ozaki, M., 106.
Page, E. C. G., 143.
Paine, D. A., 353.
Pakenham, K.C.B., Vice Admiral
Sir W. C., 351, 899.
Palmer, G. H., 739.
Palmer, Rev. Kennedy H., 313
Palmer, Roy, 638.
Paquet, Camille, 653.
Pardee, F. F., 362, 364, 510, 492
Parent, G. W., 365.
Parker, Mayor, 440.
Parker, Judge Alton B., 136.
Parker, Rt. Hon. Sir Gilbert"
200, 203.
Parkin, Sir George R., 144, 228
Parkin, L. C., 572, 573.
Parkinson, F. F., 819.
Parkinson, N. F., 342.
Parkman, Francis, 608.
Parlby, Mrs. Irene, 467, 827,
850, 853, 856.
Parlby, M.A., W. C. H., 856.
Parlee, H. H., 832.
Parliament, Hon. Nelson, 638
Parmalee, Dr. G. W., 226, 649.
Par moor, Lord, 266.
Parnell, C. S., 276, 301.
Parnell Mayor, 898.
Parnell, E., 749.
Parrett, J. T., 607.
Parsons, Mrs. H. W., 531,
Parsons, S. R., 90,901.
Partridge, E. A., 479, 494.
Pascoe, James, 712.
Patenaude, Hon. E. L., 652.
Paterson, A. M., 869, 873, 881,
887.
Paterson, James, 879, 880.
Paterson, K.C., John A., 548.
Paterson, Hon. Wm., 151.
Paterson, D.S.O., Brig. -Gen
W. R., 340.
Paton, V. J., 695.
Patrick, Dr. O. H., 819.
Patterson, Judge, 252.
Patterson, A. R. D., 750.
Patterson, Ph.D., C. F., 805.
Patterson, B.A., N. D., 606.
Patton, T. D., 899.
Pattullo, Hon. T. D., 183, 867.
869, 878, 881, 888, 892, 894,
Payne, J. Lambert, 324, 386.
Peacock, Edward R., 35, 36,
252.
Pearce, Senator G. T., 117, 118,
122, 124.
Pearse, Mrs., 297.
Pearse, Padraic, 271, 297.
Pease, E. L-, 49, 411, 483.
Peasley, C. H., 845.
Peat, Sir Harry, 236.
Peck, v.c., Col. C. W., 340, 510,
511.
Peck, J. L., 728.
Peck. R. S., 323.
Pell, Lieut. Harry S., 243.
Pell, Lieut. Willard A., 243.
Pellatt, Maj.-Gen. Sir H. M.
608.
Pelletier, Lt.-Col. P., 181.
Pelletier, Prof. L. P., 676.
Pencier, Bishop A. W. de, 136
Penteves, Commander de, 653.
Percy, Maj.-Gen. Sir J., 899.
Perkins, G. H., 478.
Perley, Lady, 221.
Perley, K.C.M.G., Hon. Sir
George, 32, 88, 91, 180, 181,
204, 214, 221, 230, 253, 255.
Perrault, K.C., Hon. J. E., 649,
650, 655.
Perrett, Lt.-Col. T. E., 802, 804
Perrin, Rev. Leonidas, 675
Penon, Hon. T. L., 647.
Perry, Col. A. Bowen, 336.
Perry, George D., 393.
Perry, H. G., 870, 881.
Perry, W. T., 71.
Peterson, Sir William, 674.
Phillimore, Lord, 85.
Philip, P., 864.
Philip, King of Spain, 257.
Phillips, Richard, 706.
Phillips, Wm., 393.
Phippen, K.C., F. H., 387, 400,
Phipps, A. E., 37.
Picard, Joseph, 206, 901.
Piche', G. C., 649.
Pierce, J. F., 420.
Pilon, H., 660.
Pingle, Hon. C. S., 833.
Pitblado, K.C., Isaac, 385, 470.
Pitcher, M.E., N. C., 857.
Plunkett, Count, 305.
Pocock, E. A., 536.
Pollock, Rt. Hon. H. M., 275
Ponton, Lt.-Col. W. N., 205
206.
Poole, W. S., 733.
Pooley, R. H., 873, 874.
Pope, Senator R. H., 319
Pope, Sir Wm., 108.
Pope, W. W., 609.
Porter, Mayoi, 440.
Porter, Prof. G. D., 599.
Porter, E. Gus, 455.
Potts, B.SC., A. E., 804.
Powell, Dr. Ellis T., 202
Powell, H. A., 154.
Powell, H. O., 799.
Powell, Dr. N. A., 605.
Power, M.C., Maj. C. G., 339,
424, 460, 487, 511.
Powers, A. A., 582, 583.
Pratt, E. C., 47.
Prenter, Mrs. Hector, 307, 504
Prest, A. J., 51.
Pretyman, M.P., Col., 235.
Price, Mrs. Harvey, 833, 838.
Price, Samuel, 532.
Price, Lt.-Col. W. H., 538.
Price, Sir William, 676.
Pridham, J. L., 896.
Primrose, Dr. Alex. 137.
Prince, Prof. A. E., 231, 605.
Pringle, R. A., 632.
Pritchard, W. A., 508.
Pritchard, William, 759.
Proudfoot, Arthur, 694.
Pugsley, Hon. William, 492, 504
719, 723.
Pullen, John, 393.
Pulliam, W. E-, 128.
Putnam, Dr. J. H., 226, 591.
Queen, John, 759, 760, 761, 762,
766.
Quezon, Manuel L., 128.
Quinones de Leon, Senhor, 83.
Quirk, E. McG., 373.
Rae, W. R., 838.
Ralli, Thomas, 249.
Ramsland, Mrs. M. O., 812.
Rand, K.C., Ivan, 394.
Raney, Hon. W. E., 232, 233,
466, 493, 497-99, 546-50,
556-59, 561, 608, 613, 620,
628-30, 634-37.
Rathom, J. R., 200.
Rau, M.A., William M., 705.
Ravenhill, R. T., 355.
Rayfield, v.c., W. L., 349, 511.
Raymond, K.C., L. Clarke, 534.
Raymond, W. G., 492, 510.
Read, Lt. W. R., 252.
Reading, H. E. Lord, 177, 251.
Redmond, James, 297.
Regan, James A., 791.
Regan, J. W., 693.
Regan, T. P., 440.
Reichel, Sir H. R., 226.
Reid, E. E., 59, 60.
Reid, H. D., 189, 192.
Reid, Miss H. R. Y., 605, 674.
Reid, Hon. J. D., 377, 378, 380,
390, 394, 398, 399, 401, 423,
424, 455, 860.
Reid, J. F., 424.
Reid, Hon. R. G., 855, 856, 858,
859.
Reid, Dr. Victoria, 605.
Reilly, C. H., 241.
Reilly, J. F., 733.
Rendall, B.A., M. J., 226.
Rennie, Brig.-Gen. R., 350,
493, 511.
Reynolds, F. J., 790.
Reynolds, J. R., 564.
Reynolds, Roy, 573, 574.
Rhodes, Rt. Hon. Cecil, 228.
Rhodes, Hon. Edgar N., 183.
Ricci-Busatti, M., 85.
Rice, W. H., 183.
Rice-Jones, C., 455, 471, 806,
896.
Richard, L. A., 649, 650.
Richard, M., 652.
Richardson, C. L., 759.
Richardson, F., 340.
Riddell, F. W., 798.
Riddell, W. A., 696.
Riddell, Hon. W. R., 77, 91,
232, 626, 628.
Rideout, George. 694.
Ridout, K.B.E., Maj.-Gen. Sir
Dudley, 188.
Riggs, F. L., 374.
Rinfret, M.P., Fernand, 200,
202, 212, 510.
Rinfret, Gustave, 649.
Riordon, Carl, 500, 501.
Riordon, Charles, 500, 501.
Rivard, Judge, 721.
Roaf, Dr. Herbert Eldon, 252.
Roaf, J. R., 252.
Robb, C. A., 847.
Robb, Hon. J. A., 523.
Robert, E. A., 427.
Robert, J. E., 660.
Roberts, W..D., C. G. D., 183.
Roberts, Lt.-Col. H. L., 564.
Roberts, Hon. W. F., 714, 718,
719, 726-7.
Robertson, Farquhar, 39.
Robertson, Hon. G. D., 320,
368, 370, 372-75, 479, 506,
507.
Robertson, Irving E., 197, 198.
Robertson, J. D., 858.
Robertson, R. S., 616.
Robertson, W. G., 443.
Robinson, B.A., Alex., 886.
Robinson, C. C., 616.
Robinson, Hon. ,C. W., 461,
711, 713, 725.
Robinson, H., 181.
Robinson, James, 806.
Robson, W. W., 739-41, 757.
Roche, Hon. Wm. J., 606.
Rockefeller, jr., J. D., 507.
Roden, Thomas, 901.
Rogers, Elias, 57.
THE CANADIAN ANNUAL REVIEW
Rogers, H. T., 733.
Rogers, J. E., 549.
Rogers, Mrs. R. A., 758.
Rogers, R. H., 736.
Rogers, Hon. Robert, 510, 743.
~ ;ers, K.C., T. Sherman, 692,
Roland, J. W., 690.
Roles, F. Crosbie, 204.
Rollo, Hon. W. R., 531, 634,
637.
Roos, Tulman, 173.
Roosevelt, Theodore, 11.
Root, Senator, 138.
Root, , Elihu, 85, 102, 116, 122.
Root, Lyman, 69.
Rorke, L. B., 362.
Rose, D.D., Rev. S. P., 677.
Rose, Dr. W. O., 876.
Ross, MX. A., Alex. 368.
Ross, Hon. Alex., 838. 854, 856,
858.
Ross, C.B., Brig.-Gen. A. E., 511
Ross, D. M., 638, 639.
Ross, J. C., 599, 638.
Ross, John U., 695.
Ross, J. T., 843.
Ross, P. D., 199, 202.
Ross, Victor, 37.
Ross, W. G., 424, 427.
Rothschild, Meyer D., 32.
Rourke, J. E., 30.
Routhier, Sir Adolphe, 676.
Rowell, Hon. N. W., 71, 82,
84-86, 90-92, 136, 140, 141,
143, 172, 197, 198, 212, 354,
369, 427, 552, 601, 803, 898.
Rowley, C. W., 55.
Roy, L. P., 656.
Rundle, W. E., 51.
Rubhbrooke, Rev. J. H., 607.
Russell, Miss E. K., 598.
Russell, D.D., Rev. Frank, 776.
Russell, T. A., 588.
Russell, W. H., 627, 630.
Rutherford, Hon. A. C., 827,
852.
Rutherford, Sir Ernest, 224.
Rutherford, J. G., 381, 384.
Rutherford, Dean, W. J., 799
Ruttan D.SC., R. F., 673.
Ryan, Thomas F., 295.
Ryder, Edmund, 326.
Ryerson, Dr. Egerton, 596.
Ryrie, James, 607.
Sadler, Sir Michael, 223.
Sahlmark, W. H., 812.
Saint-Cyr, Judge J. F., 428.
Sales, Thomas, 807.
Salmond, Sir John, 117, 122, 124
Samuels, Sir Herbert, 31, 184,
185.
Sandies, A. P., 440.
Sanford, Mrs. W. E., 354.
Sarvadhikari, Sir D. P., 223.
Sastri, Rt. Hon. Srinivasa, 124,
214, 220.
Saunders, Leslie Gale, 673.
Sauve, Arthur, 642, 652, 655,
659, 662, 663.
Savage, William, 880.
Scallion, J. W., 771.
Schetky, G. L., 69.
Schier, Col. W. D., 440.
Schofield, Mayor, 716.
Schwab, Charles M., 137.
Sclanders, F. Maclure, 159.
Scott, Hon. David Lynch, 827.
Scott, Hon. D. L., 253.
Scott, Duncan Campbell, 601
Scott, Rev. Canon F. G., 159.
Scott, Frank, 402.
Scott, Hon. G. A., 793, 812.
Scott, Col. J. A., 433.
Scott, J. C., 206.
Scott, M.C., Lt.-Col. J. S., 433,
436.
Scott, D.D., Rev. Peter, 776.
Scott, Hon. R. W., 596.
Seager, Rev. Charles Allen, 606
Sears, Jos. W., 228.
Sears, Mrs. M. L., 826, 827.
Sears, S. S., 826.
Seccombe, M.A., Thomas, 605.
Sedgwick, Rev. Dr. W. H., 606
Shaftesbury , Earl of, 222.
Shapley W. H., 67.
Sharp, F. E., 713.
Sharpe, C. Gordon, 731, 733.
Sharpe, Donald, 312.
Shatford, Rev. Canon A. P.,
254, 674.
Shaughnessy, Rt. Hon. Lord,
143, 405, 406, 409-12, 460,
482, 483.
Shaw, H. C., 874.
Shaw, John R., 901.
Shaw, J. T., 493.
Sheard, M.P., Dr. Charles, 312.
Sheldon, Mark, 143, 205, 206,
209, 254.
Sheppard, F. A. J., 563.
Sheppard, Rice, 826.
Sheppard, J. H., 901.
Shields, W. R., 582.
Shipley, Sir Arthur, 236.
Shirton, Mayor K. J., 548.
Short, J. A., 604.
Short, K.C., William, 853.
Shortly, O. B., 60.
Sidenius, R. C., 899.
Sifton, Rt. Hon. A. L., 319, 367,
827, 832, 847.
Silver, B.A., H. J., 674.
Silverthorn, Dr. Gideon, 598.
Simard, C. J., 649.
Simard, Hon. George A., 664.
Simon, Rt. Hon. Sir John, 168,
184, 265, 750, 899.
Simmons, Hon. W. C., 827.
Simpson, Bertram Lenox, 99.
Simpson, James, 479, 507, 508.
Simpson, C.B.B., Col. R. M., 743
Sims, K.C., H. J., 61.
Sims, Adm. W. S., 289, 290.
Sincar, Sir Nilratan, 223.
Sinclair, Hon. J. E., 523.
Sinclair, J. H., 414, 493.
Sinclair, P. F., 374, 375.
Sinclair, W. E. N., 540, 639.
Singh, Sir Prata, 166.
Sinha of Raipur, Lord, 166.
Sinnott, Archbishop, 313.
Sioui, Chief Ovide, 608.
Sipprell, Rev. Dr., 880.
Size, C. F., 387.
Size, P. F., 670, 672.
Skelton, Prof. O. D., 77, 92, 170
Slack, Austin, 305.
Slipp, K.C., Hon. Arthur R., 719
Sloan, Hon. Wm., 878, 881,
891, 894.
Smart, Brig.-Gen. C. A., 659,
662.
Smart, James, 67.
Smith, Rev. A. E., 508, 760, 716
766.
Smith, K.C., Alex., 492.
Smith, Governor Alfred, 287.
Smith, Dr. Charles E., 847.
Smith, C. Howard, 901.
Smith, Hon. E. A., 715, 716.
Smith, E. Norman, 198.
Smith, F. J., 899.
Smith, Sir Geo. Adam, 223.
Smith, George H., 51.
Smith, Hon. G. P., 803, 842'
844-47, 854.
Smith, Hon. G. R., 655. ]'
Smith, H. B., 419.
Smith, Lt.-Col. Henry, 255.
Smith, H. H., 802.
Smith, J. J.,788.
Smith, Prof. J. M., 804.
Smith, J. MacG., 846. g£ ~jj -'
Smith, Julian C., 747.
Smith, K. H., 692, 716.
Smith, Lt.-Col. Obed, 88, 230.
Smith, Hon. Peter, 528, 538,
539, 540, 541, 638.
Smith, R. H., 898.
Smith, Hon. Mary Ellen, 850,
862, 870.
Smith, Sir Ross, 435.
Smith, Hon. V. W., 856, 858.
Smith, Hon . Wm., 238, 319, 510
Smithers, M.P., Sir Alfred W.,
397, 399, 400, 404.
Smithers, G. H., 419.
Smuts, Gen. Rt. Hon. J. C.,
79, 81, 93, 116, 169, 171, 173,
216, 220, 229, 299, 301, 305
601, 688.
Snell, Dr. J. A., 802.
Snider, Judge C. G., 327.
Snow, Matthew, 470.
Somerleyton, Lord, 252.
Somerset, Duke of, 352.
Somerville, C. R., 461, 588.
Sommerville, Norman, 536, 537
Sparling, A. J., 804.
Speakman, Alfred, 520, 521.
Spence, Rev. Ben. E., 551.
Spence, M.I,.A., George, 799.
Spence, W. D., 841.
Spencer, Chris., 841.
Spencer, J. B., 564.
Spencer, Lt.-Col. Nelson, 367,
368.
Spinney, Hon. E. K., 328, 361,
510.
Spracklin, Rev. J. O. L., 560.
Spratt, Archbishop, 595.
Spry, Graham, 228.
Spurling, C.B.B., Hon. S. S.,
193, 194.
Squire, S. L., 438, 440.
Squires, Sir Richard, 190, 221,
697.
Staats, Chief Andrew, 608.
Stafford, 2nd Earl of, 249.
Stair, E. W., 368.
Stanbridge, M.L.A., M. J.,
743, 761, 774.
Stanfield, Lt.-Col. Hon. John,
340
Stanley, Senator, A. O., 147
Stanley, Dr. G. D., 831, 833.
Stanley, T. E. A., 845, 846.
Stansfield, Edgar, 857.
Stapells, R. A., 531.
Staples, M. H., 507, 567, 580.
Staples, W. D., 468, 469, 478.
Staples, W. E., 137.
Starmer, Sir Charles, 204.
Starr, Very Rev. Dr., 606.
Starr, Dr. Clarence, 598.
Stavert, Sir Wm. E., 665.
St. Cyr Rev. Father, 601.
Stedman, H. H., 374.
Steed, H. Wickham, 121, 163,
184, 899.
Steedman, J. P., 419.
Steel, Rev. George, 730.
Steele, M.P., Dr., 238.
Steele, Charles E., 551.
Steeves, W. H., 712.
Stephenson, J. G., 60.
Sterling, J. T., 674, 857.
Stevens, Hon. H. H., 320, 324,
357, 368.
INDEX TO NAMES
Stevens, Flight Lt. L. E. D.,
433.
Stevens, Miss Margaret, 531 .
Stevenson, M.L.A., Dr., 637.
Stevenson, J. A., 117, 218.
Stewart, Hon. Charles, 253,
462, 519, 523, 827, 828, 830,
831, 838, 847-49, 855, 856.
Stewart, D. A., 718-9.
Stewart, F. W., 411.
Stewart, Hon. J. A., 320, 378,
454, 491.
Stewart, James, 326, 639,
798, 826.
Stewart, K.C., J. D., 736.
Stewart, J. F. M., 901.
Stewart, J. M., 689.
Stewart, Brig.-Gen. J. S., 833,
851, 853.
Stewart, Maj.-Gen. J. W., 252
Stewart, J. W. W., 60.
Stewart, MacG., 689.
Stewart, R. B., 181.
Stewart, W. J., 362.
Stillman, C. O., 58.
Stillwell, Rev. J, R., 607.
Stirling, J. T., 823.
Stires, E. M., 705.
Stirrett, J. T., 901.
St. Germain, K.C., Paul, 679.
St. Laurent, A., 328.
Stout, Sir Robert, 223.
Stovel, John, 758.
Strachan, v.c., Maj. Harry, 849.
Strange, L. G. H., 819.
Strathcona, Lord, 776.
Strathy, Mrs. H. S"., 225.
Streight, M.C., Maj. J. E., 511.
Stuart, K.B.E., Sir Campbell,
36, 134, 183, 200, 202, 203.
Stuart, Hon. C. A., 828.
Stuart, F. L., 613.
Stubbs, L. St. George, 480, 750-
Sulaty, William, 781, 782.
Sullivan, J. G., 747.
Sumner, George, 209.
Sutherland, J. C., 668.
Sutherland, MX. A., John, 776.
Sutherland, Hon. R. F., 615.
Sutherland, W. H., 881.
Swaine, Dr. J. M., 329.
Swanson, Prof. W. W., 789.
Sweatman, K.C., Travers, 751.
Sweden, Crown Princess of, 164
Sweeny, Bishop J. F., 552.
Sykes, D. J., 793.
Sykes, W. J., 604.
Sylvestre, S., 647.
Symington, K.C., H. J., 383.
Symonds, H. L., 206.
Taft, Hon. W. H., 93, 289, 399
402, 403, 706.
Taggart, H. L., 708, 709.
Taillon, Sir L. O., 317.
Tait, Sir Melbourne, 678.
Talbot, Lord Edmund, 169, 274
Talbot, Harry, 239.
Talbot, P. A., 740, 774, 775.
Tallman, W. F., 443.
Tanner, C. A., 759.
Tansley, Gordon, 39.
Tarte, Eugene, 653.
Tarte, L. J., 653.
Taschereau, Hon. L. A., 136,
150, 204, 233, 249, 481, 489,
492, 529, 601, 640-43, 652-
55, 659-62, 665, 670, 671, 900.
Taylor, Dr. Bruce, 226, 605.
Taylor, D.S.O., Maj. F. G., 349.
Taylor, F. W., 350.
Taylor, X.L.A., J. D., 638.
Taylor, L. E., 887.
Taylor, Sir Thomas, 776.
Taylor, W. J., 199.
Tellier, Mr. Justice, 678.
Tessier, Hon. J. A., 440, 646
647, 657, 659.
Thomas, Rev. Ernest, 552, 555.
Thomas, Sir Godfrey, 165.
Thomas, Hon. J. H., 163.
Thomas, M.A., W. D., 804.
Thompson, Col. A. T., 461, 462
Thompson, E. Murray, 812.
Thompson, H. C., 754.
Thompson, J. A., 747.
Thomson, J. B., 411.
Thompson, M.L.A., J. E., 544,
Thompson, J. M., 750.
Thompson, K.C., Lt.-Col. J. T.
C., 343.
Thompson, Percy W., 716.
Thompson, William, 60.
Thompson, Prof. W. T., 805.
Thomson, Levi, 338, 804.
Thome, Gilbert G., 49.
Thornton, Hon. Dr. R. S., 226,
757, 772.
Thornton, L. A., 788.
Thorp, Orville, 60.
Thrasher, W. M., 811.
Tighe, J. E., 721.
Tilley, K.C., L. P. D.,90.
Tilley, K.C., W. N., 402.
Timmins, Noah, 577.
Tisdale, Prof. W. H. J., 804.
Todd, A. E., 439.
Todd, Mrs. A. E., 603.
Todd, B.A., J. L., 672.
Tolmie, J. C., 549, 565, 639.
Tolmie, Hon. Dr. S. F., 47,
236, 237, 817.
Tompkins, Rev. J. J., 705.
Topp, D.S.O., Maj. C. B., 57, 344
Tory, Dr. H. M., 90, 224, 253,
803, 805, 847, 857.
Tory, Hon. J. C., 688, 702.
Toulmin, Sir George, 201.
Tourigny, Paul, 647, 653.
Townley, T. O., 47.
Tracey, M.I..A., R. K., 737, .
Trapp, T. J., 886.
Tregarthen, Coulson, 606.
Tremblay, Napoleon, 677, 678.
Trench, Rev. G. F., 806.
Trenchard, Sir Hugh, 216, 436.
Troup, Mrs. J. W., 418.
Tullis, M. P., 797.
Tupper, K.C., Sir C. H., 879.
Tupper, K.C., W. J., 758, 760,
762.
Turgeon, Hon. Adelard, 655.
Turgeon, J. G., 837.
Turgeon, Hon. W. F. A., 780.
Turley, William, 349, 530.
Turnbull, W. H., 896.
Turner, Harris, 793, 811, 812.
Turner J. B., 605.
Turner, v.c., Lt.-Gen. Sir
R. E. W., 241.
Turriff, Senator J. G., 241, 355.
Tuxford, C.B., Brig.-Gen. G. S.,
433.
Tweeddale, Hon. J. F., 717.
Tweedie, T. M. M., 367, 455.
Twigg, H. Despard, 879.
Tylee, Fl. Com. A. K., 436.
Ullswater, Lord, 87.
Underwood, Senator, 122.
Uphill, Thomas, 881.
Urique, Very Rev. Albert, 675.
Urquhart, D.S.O., Lt.-Col. H.
M. 164.
Valentine, George, 374.
Van Home, Sir Wm., 405.
Van Koughnet, Mrs. Arthur
343.
Van Someran, A. P., 65.
Vanier, Guy. 721.
Vaughan, R. B., 744, 773.
Vaughan, Williams, K.C., R. E.
L., 316.
Veniot, Hon. P. J., 308, 320,
440, 461, 712, 720, 721, 725,
726.
Venizelos, Premier, 83.
Verneuil, Marcel de, 653, 667.
Vernon, Rev. Canon C. W., 553.
Victoria, H.M. Queen, 247, 860.
Vien, K.C., T. A., 366, 424, 511.
Villard, Oswald Garrison, 292.
Viviani, Ren£, 84, 122.
Vogt, Dr. A. S., 598.
Volk, Lester D., 131.
Warburg, Paul M., 40.
Ward, Judge, 544.
Ward, Mrs. F. C., 551.
Ward, G. H., 183.
Ward, R. S., 757.
Warnock, O.B.B., D., 865.
Warren, F. K., 354.
Warren, Hon. W. R., 191, 192.
Washington, George, 127.
Watson, Maj.-Gen. Sir David,
350.
Watson, G. A., 748.
Watt, A. B., 253.
Watt, Mrs. D., 744.
Watts, E. W., 750.
Waugh, Dr. John, 586, 603.
Waugh, R. D., 86.
Way, 47.
Way, Chief Justice Sir S., 47.
Way, A. F., 700.
Wayland, C.M.G., E. R., 183.
Waal, Sir Frederic de, 229.
Wade, K.C., F. C., 139, 181, 183,
204, 252, 868.
Waddington, J. F., 343.
Wain wright, Arnold, 673, 679.
Wainwright, Cecil S., 66.
Wakely, William R., 694.
Waldron, K.C , Gordon, 583.
Walker, Sir Edmund, 205, 207,
209, 597.
Wallace, Dr., 436.
Wallace, J. Alex., 588.
Wallace, Mrs. J. A., 584.
Wallace, J. H., 899.
Wallace, T. G., 369.
Wallace, Prof. R. C., 744, 750.
Wallace, Judge, W. B., 696.
Walsh, Archbishop, 279, 291,
298.
Walsh, Senator, D. J., 127, 291,
295.
Walsh, F. W., 888.
Walsh, J. C., 510, 672.
Walsh, J. E., 530,901.
Walsh, Hon. W. L., 827.
Webster, Mrs. Frank, 582.
Webster, Hon. Lome C., 39,
131, 427.
Webster, W. W., 564.
Weir, E. A., 757.
Weir, Dr. George, 803.
Weir, James, 837.
Weizmann, Mrs. C., 186.
Weizmann, Dr. Cham, 186.
Welch, Mrs. D. C., 827.
Wells, C.M.G., Lt.-Col. Rev.
G. A., 776.
Wells, H. G., 116.
Wells, Dr. R. B., 847.
Wesley, Charles, 606.
Wesley, John, 606.
Westminster, Duke of, 236.
Westren, J., 58.
Whalley, Rev. Canon, A. H..
555.
Wheeler, A. O., 867.
Wheeler, Seager, 544.
White, Miss Edith M., 705.
THE CANADIAN ANNUAL REVIEW
White, Rt. Hon. Sir Thomas,
369, 399, 402-04, 427, 486,
492, 501.
White, William Allen, 292.
Whiteside, A.M. ,869.
Whiteside, D., 880.
Whitman, F. C., 691, 706. 707.
Whitney, Sir James, 614.
Whitney- Griffiths, G. E., 887.
Whittaker, Rev. C. W., 311.
Wickersham, G. W., 93.
Wickwire, Hon. H. H., 440,
689, 690, 697, 699.
Widdifield, J. W., 614.
Wigmore, Hon. R. W., 358.
Wilbur, F. S., 780, 811.
Wile, F. W., 287.
Wilgress, L. D., 323.
Wilkes, G. H., 534.
Williams, M.A., Basil, 674.
Williams, B.S., G. M., 804.
Williams, G. S., 157.
Williams, J. W. H., 253.
Williams, Maj.-Gen. V. A. S.,
339.
Williams-Taylor, Sir F., 26,
37, 42, 47.
Willing, Professor, 805.
Willing, Mrs. T. N., 805.
Willis, S. J., 885.
Willison, Sir John, 200, 413,
588, 605.
Wilson, Mrs. A. C. D., 719.
Wilson, Sir Arnold T., 184.
Wilson, Ellwood, 182.
Wilson, C.M.G., Maj.-Gen. E. W.
340.
Wilson, F. Howard, 39.
Wilson, Gordon C., 572, 573,
574.
Wilson, H., 750.
Wilson, P.M., Sir Henry, 216.
Wilson, J. A., 435.
Wilson, James, 235.
Wilson, Lt.-Col. J. D., 253.
Wilson, Hon. J. M., 427, 510.
Wilson, Hon. J. R., 320.
Wilson, P. B., 254.
Wilson, P. W., 144.
Wilson, Dr. R. A., 804.
Wilson, W. B., 154.
Wilson, Rev. W. D., 718.
Wilson, Woodrow, 80, 83, 85,
102, 126, 133, 138, 145, 146,
154.
Windle, Sir Bertram, 898.
Windle, Charles A., 555.
Winkler, Valentine, 86.
Winning, Joseph, 749.
Winsby, Lt.-Col. W. N., 879.
Winter, W. H., 374.
Winters, M.S., L. M., 804.
Wisdom, Jane B., 696.
Withers, Hartley, 405.
Wodson, Edward, 353, 354.
Wood, Clifford P., 694.
Wood, D. O., 205.
Wood, Maj. E. F. L., 196.
Wood, E. R., 25, 391.
Wood, H. W., 383, 449, 451-53,
462, 467, 468, 473, 474, 478,
493, 521, 770, 779, 806, 807,
824, 826, 829, 838, 848, 850,
851, 855.
Wood, Hon. Josiah, 730.
Wood, J. S., 756.
Wood, Mrs. J. S., 744, 771, 772.
Wood, General Leonard, 128.
Wood, K.C., Sydney, 253.
Wood, Lt.-Col. William, 605.
Wood, W. R., 771.
Woods, Sir James, 205, 206
Woods, Mrs. J. H., 203.
Woods, K.B.B., Sir J. W., 205.
Woods, K.C., S. B., 832.
Woodsworth, J. S., 508, 511.
Wolfe, General, 252.
Woll, President, 136.
Wooten, W. P., 156, 157.
Worcester, Prof. W. G., 805.
Workman, Rev. Dr. G. 170
Workman, Mark, 186.
Wormuth, N. B., 532.
Worthington-Evans, Sir L., 214,
303.
Wright, Alex., 533.
Wright, Alf-ed, 62.
Wright, C. E., 607.
Wright, B.A., Rev. C. W., 339.
Wright, George, 426.
Wright, Mrs. Grodon, 502.
Wright, Horace, 738.
Wright, Peter, 349, 771.
Wrong, Prof. G. M., 233, 590,
599.
Wynne, William Harris, 606.
Yakimischak, D., 775.
Yates, George W., 390.
Yeghen, Adly Pasha, 179, 180,
Young, A. H., 374, 375.
Young, Mayor A. M., 802.
Young, G. M., 135, 146, 152.
Young, M.D., H. E., 866.
Young, Hon. John, 39.
Young, R. S., 48.
Zacharias, Adolph N., 316.
Zaghlul, Pasha, 179-80.
INDEX OF AFFAIRS
Acadia University, 705.
Acadian Congress, 721-2.
Acts Passed by Canadian Par-
liament, 364.
Adolescent School Attendance
Act, Ontario, 590-1.
Agricultural College, Truro,
N.S., 685, 699-700, 706.
Agrcultural Conditions in Mani-
toba, 743-4, 766-7
Agricultural Conditions in Sas-
katchewan, 794-800.
Agricultural Development Act,
Ontario, 568-9
Agricultural Development Fin-
ance Act, Ontario, 568.
Agriculture, Alberta Schools of
815, 843.
Agriculture in Alberta, 814-19
Agriculture in B.C., 865, 890-1.
Agriculture in N.B., 709-10,
712-13.
Agriculture in Nova Scotia,
684-5
Agriculture in Ontario, 562-5.
Agriculture in P.E. Island, 734.
Agriculture in Quebec, 680,
681-3.
Air Board, Canadian, 322,
433-4-5.
Air Communications, Imperial,
219.
ALBERTA—
Agriculture in, 814-9.
Dominion Elections in, 467,
473-4,509,510,511,517.
Educational Interests of 842-
7.
Elections of 1921 in, 848-55.
Financial Conditions and
Budget in, 839-40, 841-2.
Greenfield Government in,
855-9.
G.W.V.A. in., 346.
Highways in, 438-9.
Immigration from U.S. to,
130.
Irrigation Problems of, 819-
22.
Legislation in 1921 of, 832.
Mineral Interests of, 822-4.
Municipal Conditions of, 840-
2.
Stewart Government in, 827-
46, 848-50, 856.
Temperance Question in, 661,
829-32.
United Farmers of, 467, 824-6
United Farm Women of,
826-7, 850-1.
Alberta and Great Waterways
Ry., 823.
Alberta Educational Associa-
tion, 845-6.
Alberta, University of, 846-7.
Anglo- Japanese Treaty, Can-
adian attitude to, 94, 99-101,
117.
Anglo- Japanese Treaty, The,
94-102, 106.
Annapolis Royal, N.S., Tercen-
tenary, 706-8.
Appointments, Manitoba Govt.
740, 750-1.
Appointments, N.B. Govern-
ment, 719.
Appointments, N.S. Govern-
ment, 688, 697.
Appointments, Saskatchewan,
Government, 777, 781.
Armaments, World Expendi-
tures on, 107.
Army and Navy Veterans, 349.
Assessment Equalization Bd.,
Alberta, 841.
Australia, Conditions in, 252-3-4
Automobile Association, Can-
adian, 443.
Automobiles in Canada, 441-2.
Aviation, British, 219, 431-2.
Aviation, Canadian Progress,
433-6.
Aviation, World Developments
in, 431-36.
Archives, B.C., 866-7.
Bank Branches, Canadian, 38.
Bank Clearings, Canadian, 135.
Banking, Manitoba Provincial,
757-8.
Bank of Montreal, Merchants
Bank and, 41-3.
Bankers' Assn., Canadian, 37.
Bankers' Educational Assn.,
Canadian, 37.
Banks, Farmers' Organizations
and, 43.
Banks, Policy of Canadian, 46
Banking Appointments, Can-
adian, 35, 38, 47.
Banking Interests Abroad, Can-
adian, 47-50.
Banking Statistics, 34-5.
Bell Administration in P.E.
Island, 734-6.
Bell Telephone, Annual Report
of, 388.
Bi-lingualism in Manitoba, 774-
Bishop Strachan School, 607.
Bisley Team, Canadian, 340.
"Black and Tans", 262, 266,
288.
Board of Commerce, Canadian,
505-6.
Bonds, Prices of Canadian, 25-6.
Brandon College, Brandon, 776.
Branksome Hall, Toronto, 607.
BRITISH COLUMBIA:—
Agricultural Production of,
891.
Budget Speeches in, 881-4.
Business Conditions in, 890-1 .
Dominion Elections in, 509,
510, 511, 516.
Educational Conditions in,
885-7.
Fisheries in 1921 of, 895-6.
Freight Rates and, 384.
Fruit Conditions in, 891.
Govt. Control of Liquor in,
876-81.
G.W.V.A. in, 346.
Highways in, 438-9.
Land Settlement, Board of,
865-6.
Legislation in, 869-76, 877-9,
880-1.
Lumber Production of, 894-5.
Mines and Minerals in, 892-3.
Oliver Government in, 859-69
Public Utilities, Commission
of, 430.
Union of Municipalities of,
429-30.
United Farmers of, 895-6.
Water Power in, 155.
British Columbia Electric Rail-
way, 429-30.
British Columbia, University of
886-7.
British Empire Alliance, 252-3.
British Empire Steel Corpora-
tion, 686.
British Overseas Banks' Assn.,
49.
Budget, Alberta, 839-40.
Budget and Finance of Mani-
toba, 751-8.
Budget and Finances of Sas-
katchewan, 791-3.
Budget of New Brunswick,
722-3.
Budget of Nova Scotia, 702.
Budget of P.E. Island, 735.
Budget, Ontario, 538-42.
Budget, Sir H. Drayton's, 26-33
Budget Speeches, B.C., 881-4
Building and Construction In-
dustries Convention, 375.
Building Contracts, Canadian,
375.
Bye-Elections, Dominion, 367-9
Bye- Elections, Quebec, 652.
Cabinet, Members of Canadian,
320.
Cable News Conditions, Can-
adian, 197-9.
Cadet Services, Canadian, 334,
339.
Canada Mortgage Loan Assn.,
52.
Canada Permanent Mortgage
Corpn., 51.
Canada Steamship Lines, Ltd.,
419-20.
Canada Wheat Board, 449-50.
Canadian Club, New York, 407.
Canadian Club of Gt. Britain,
182-3.
Canadian Clubs, 183, 898-9.
Canadian Council of Agricul-
ture, 469.
Canadian Expeditionary Force
Finances, 493.
Canadian Fraternal Assns., 62.
Canadian Good Roads Assn.,
439-41.
Canadian Manufacturers' Assn .
32, 640-1, 900-1.
Canadian Merchantile Marine,
324, 357, 414-7, 485.
Canadian National Railways ,
378-9, 383, 389-95, 410,
458-9, 463, 465, 485, 489-90.
Canadian Northern Railway ,
378, 389, 393, 410, 485.
Canadian Order of Foresters, 65
Canadian Pacific Ocean Ser-
vices, 417.
Canadian Pacific Railway, 378,
390, 405-9, 410-11.
Canadian Pacific Steamships
Ltd., 417-19.
Canals, Canadian, 156, 422-5.
Canteen Fund, 349.
Catholic Labour Union, Na-
tional, 372-4.
THE CANADIAN ANNUAL REVIEW
Catholic School Commission,
Montreal, 667.
Cattle Embargo, British, 234-9,
565, 624, 660, 818-19.
Cattle Trade, Canadian, 237.
Census of Canada, 323.
Chamber of Commerce in
London, Canadian, 181-2.
Chamber of Commerce in New
York, Br. Empire, 133.
Chambers of Commerce Con-
gress of 1920, 205-10.
Chinese Relief, 316.
Chippawa-Queenston Power
Canal, 620-2, 624.
Cinematograph Films, Can-
adian Govt., 323-4.
Civil Service Act, Amendment
of, 361-3.
Civil Service Commission,
Dominion, 328.
Civil Service Federation,
Canadian, 328-9.
Clark-Crerar Controversy, 473-
4, 493.
Coal Conditions, B.C. Com-
mission, 892-3.
Coat of Arms, New Canadian,
320.
Coinage, New Canadian, 30.
Committee of 100, Irish- Amer-
ican, 292-4.
Commons Debates, Dominion
House of, 359.
Conservation Commission, Ab-
olition of, 327.
Conservatism in Ontario, 543-4.
Conservatives in Alberta, 852-3.
Conservatory of Music, Tor-
onto, 598.
Court of Justice, International,
Canadian Ratification, 364.
Crops. Value of Canadian, 324.
Currency Conditions, 20.
Customs and Excise, Canadian,
28-9, 324.
Dail Eireann, 262, 283, 301-2.
Dalhousie University, Halifax,
704.
Deep Waterways Association,
Canadian, 159.
Deflation in Canada, 72-4.
Demobilization, Cost of, Can-
adian, 487.
Despatie-Tremblay Marriage
Case, 233, 677-9.
Dividends, Canadian Industrial
24.
Divorces in Canada, 360.
Dollar S. S. Co., Canadian
Robert, 422.
Dominion Alliance, 503, 551-2.
Dominion Status, The Empire
and, 75, 102, 140-4.
Drainage Commission, Mani-
toba, 747-8.
Drury Administration in On-
tario, 525-38, 539-640.
Drury -Morrison, Controversy
in Ontario, 526-9.
Education in Alberta, 842.
Education in B.C., 885-7.
Education in Quebec, 666-77.
Educational Affairs in New
Brunswick, 712-13.
Educational Conditions in Man-
itoba, 764, 772-6.
Educational Conditions in N.S ,
703-6.
Educational Conditions in P.E.
Island, 735, 736, 737.
Educational Conditions in Sas-
katchewan, 777-8, 800-6.
Educational Legislation, On-
tario, 634, 636.
Educational Progress and Pol-
icy in Ontario, 585.
Eight-Hour Day Act B.C.,
871-874.
Election Campaign, Mr. Meig-
hen's, 449-56.
Elections, Candidates in Do-
minion, 509-17.
Elections, Govt. Policy in Do-
minion, 447, 448-55.
Elections in Alberta, 848-55.
Elections, Issues of Dominion,
445-6, 448.
Elections, Press Comment on
511, 518-19.
Elections, Results of, 509-19.
Elections, Saskatchewan Gen-
eral, 808-13.
Electiic Railways, Canadian,
425-31.
Emergency Act of 1921, U.S.,
146-8.
Emigration Conference, Inter-
national, 87-8.
Emigration, Irish, 258-9.
Emmanuel College, Saskatoon,
806.
Enlistments, War, 494.
Equalization Commission, Sas-
katchewan Tax, 788-9.
Express Rates, Increase in,
386-7.
Failures in U.S. and Canada,
22, 23-4.
Farm Loan Act, U.S., 45.
Farm Loans Assn., Manitoba,
756-7.
Farm Loans Board, Saskatch-
ewan, 792-3.
Farm Loans Act, in Ontario,
566-71.
Farmers and Banks, 43.
"Farmer's Sun", The, 527-8.
Farming Conditions, Sask.,
Commission on, 799-800.
Financial Affairs, Canadian, 22-6
Financial Affairs, Exchange
Rates, and, 19.
Financial Affairs, National
Debts and, 18.
Financial, World Conditions,
17-22.
Financial Appointments, Can-
adian, 53.
Fire Losses, Canadian, 66.
Fire Underwriter's Assn., Can-
adian, 69.
Fisheries in B.C., 895-6.
Fisheries in Nova Scotia, 687.
Fisheries, International Ques-
tions and, 133, 135.
Fisheries of N.B., 710.
Flavelle, Proposed Railway
Policy of Sir Joseph, 395-6,
490-1.
Ford Motors, Mr. Raney and,
497-9.
Fordney Bill, 144-5, 466, 641.
Forest Fires, 66.
Forestry Association, Empire,
182.
Forestry Conference, Imperial,
230-1.
Foster Govt., in New Bruns-
wick, 711-23.
France, Trade Agreement with,
315.
Freight Rates, 381-5.
Freight Rates, Maritime, 393-4.
Freight Rates, Ocean, 325.
French-Canadian Schools, in
Ontario, 601-2.
French Mission to Canada,
Visit of the, 316.
French-River Waterway, 317.
French Trade Agreement, 337.
French Visitors to Canada, 653 .
Fruit Conditions in B.C., 891.
Galician Loan, 492.
Game Act Amendments, N.B.,
725.
Game Act, N.S., 700.
Game Conservation Bd., B.C.,
868, 873-4.
Gold Seal Ltd. (Liquor) Case,
831-2.
Gold Supplies and Reserves,
20-1.
Government Banks, U.F.A.
and, 44.
Government Liquor Control in
Quebec, 660-6.
Governor-General of Canada ,
Lord Byng, 248-51.
Governor-General of Canada,
Duke of Devonshire, 245-8.
Grain Enquiry Commission,
The, 468-73.
Grain Exchange, Winnipeg,
468, 470.
Grain Shipments, Canadian,
421-2.
Grand Army of United Veterans
348-9.
Grand Trunk Arbitration, 398-
405.
Grand Trunk Pacific Railway
378, 395, 485.
G.T.P. Branch Lines, Alberta
and, 828.
Grand Trunk Railway, 378,
389, 397-405, 409-10, 412-13,
485, 486, 491.
Great Britain, Economic Con-
ditions in, 113-6, 124-9, 162-8,
234-40, 256-72.
Great War Veterans Associa-
tion, 230, 345-8.
Greater Winnipeg Water Dis-
trict, 747.
Greenfield Govt. in Alberta,
855-9.
Group Politics in Canada, 315,
457, 467.
Hail Insurance Board Alberta,
828.
Hamilton Street Railway, 430.
Havergal College, Toronto, 607.
Hay-Pauncefote Treaty, Can-
ada and the, 139.
Hearst Publications, 130, 638
Helium in Canada, 435.
High School Education, On-
tario Committee on, 587-8.
Highway Commission, Nova
Scotia, 689-91.
Highways, Alberta, 849.
Highways, B. C., 863-5
Highways, Canadian, 436-41.
Highways in Manitoba, 745-6.
Highways in Saskatchewan ,
784-5.
Highways of N.B., 437-9,
711-12.
Highways of Nova Scotia,
438-9, 688-91.
Highways, U.S., 437.
Historical Survey, Dominion,
322.
History, Anglo-American Con-
ference on, 231.
Hollinger Consolidated Gold
Mines, Ltd., 576, 578.
Home Bank of Canada, 36.
Home Rule in India, 176.
Hospitals in B.C., 866.
INDEX OF AFFAIRS
D
Hospitals, Military, 335.
Housing Conditions, B.C., 867.
Housing Loans, Canadian, 319,
326.
Hudson's Bay Railway, 394-5.
Hydro- Electric Commission,
Ontario, 609-10, 613, 622-3,
624.
Hydro- Electric Dept., Winni-
peg, 746-7.
Hydro-Electric Legislation, On-
tario, 610-11, 612-15, 618-19.
Hydro-Electric Railway Com-
mission, 615-18.
Immigration, Mr. Beatty and,
407-8.
Imperial Conference, The, 210-
21, 431-2.
Imperial Oil Co., 838.
Imperial Teachers' Conference,
601.
Income Tax, B.C., 8/6.
Income Tax, Canadian, 45J}__
Independent Order Foresters,
63-4.
Indian Affairs, Canadian, 322.
Indians of Asia, Status of, 216.
Industrial Conditions, Can-
adian, 24.
Industrial Disputes Board, 376.
Industrial Relations, Dominion
Conference on, 374.
Industry in N.B., 710.
Industry in Quebec, 680-1.
Insurance Appointments, 69-70.
Insurance Conventions, 59-62.
Insurance, Fire, 65-9.
Insurance, Fraternal, 57-9.
Insurance, Group, 57-9.
Insurance, Life, 53-7.
Inter-Colonial Railway, 728-9.
International Waterways Com-
mission, 821.
IRELAND:—
Government Act of,
American Federation of La-
bour and, 291-2.
American Hierarchy and,
282-3.
Canadian Attitude toward,
305-6.
Cattle Embargo and, 236,
238.
Debt of, 273.
Elections in, 261, 274.
Financial State of, 259, 294.
Free State of, 303-5.
Home Rule Question in.
268-72, 274, 296-7.
Knights of Columbus and,
295.
Land Acts in, 269.
Orange Order in Canada and,
306, 310-14.
Population of, 258.
Roman Catholic Church in,
276-80.
Sinn Fein in, 260-8, 271-2.
U.S. Sentiment and, 28/:-93.
Irish-American Societies, 285.
Irish Population, 258-9.
Irish Republican Army, 263.
Irish Republican Loans, 286-7,
290-1.
Irrigation and the C.P.R.,
819-20, 822.
Irrigation in Alberta, 819-22.
Japan, U.S. and, 96, 101.
Japanese Policy in the East, 95.
Jewish Movement, The, 184-7.
Jockey Club, Ontario, 557-9,
561.
Joint Commission, Internation-
al, 153-5.
Joint Councils of Industry, Re-
port on, 370.
Judicial Appointments, Can-
adian, 330-1.
Justice, International Court of,
85-7.
King Government, Mackenzie,
519-24.
King's College, Windsor, 705.
Knights of Columbus, 295.
Knox College, Toronto, 606.
Labour Conference, Interna-
tional, 89.
Labour in Australia and New
Zealand, 172.
Labour in Manitoba, 739, 740.
Labour in South Africa, 173-4.
Labour Issues in the Elections,
504.
Labour Legislation, Ontario,
635.
Labour, N.B. Federation of,
720-1.
Labour Union, National Cath-
olic, 372-4.
Lake of the Woods, Contro-
versy, 363-4, 630-4.
Lake of the Woods Question
in Manitoba, 741-2.
Land Banks in U.S.. 45-6.
Land Settlement Board, B.C.,
865-6. 869, 874-5.
Laval University, 645, 675-6.
League of Nations, 82-94.
League of Nations Society in
Canada, 90.
Legislation in 1921, Alberta,
832-8.
Legislation in 1921, B. C., 869-
76.
Legislation in N.B., 723-9.
Legislation in P.E.I., 736-7.
Legislation in Manitoba, 758-66
Legislation of 1921 in Nova
Scotia, 697-702.
Legislation, Saskatchewan,
793-4.
Lethbridge, Northern Irri-
.tion Project, 819-20, 822,
Liberal Election Policy, 447,
448, 456, 489.
Liberal Policy, Mackenzie
King and, 331-3, 519-24.
Liberalism in Ontario, 542-3.
Liberals in Alberta, 848-50.
Liberty League, Citizens, 552-3,
556.
Life Underwriters' Assn., of
Canada, 59-60.
Liquor, B.C. Govt. Control of,
876-81.
Liquor Control, Quebec, 654-66.
Liquor Control Bd., B.C.,
878-9, 881.
Live-Stock in Canada, Num-
ber of, 324.
Loyola College, Montreal, 676-7
Lumber Conditions, B.C., 894-5
Lumbering in N.B., 700, 713-14.
MANITOBA:—
Agricultural Conditions in,
743-4, 766-8.
Dept. of Health of, 749.
Dominion Elections in, 449-
50, 454-5, 463, 480, 509,
510, 515-16.
Educational Affairs in, 764,
772-6.
Farm Loans, in, 52.
Financial Conditions in, 751-
8, 762,
Government Appointments,
in, 740, 750-1.
Government Telephones in ,
748.
Highways in, 438-9, 745-6.
Legislation in, 758-66.
Mother's Allowance Com-
mission of, 748-9.
Natural Resources Question
in, 740-2.
Norris Administration in ,
739-51.
Population of, 751.
Prohibition Question in, 661,
742-3.
Provincial Banking Syste m
44.
Public Debt of, 642.
Public Utilities Commission
of, 428-9, 748, 762.
United Farmers in, 768-72,
467-73.
Water-power in, 363, 632-3-4,
746.
Manitoba College, Winnipeg,
776.
Manitoba Educational Associa-
tion, 775.
Manitoba Motor League, 443.
Manitoba Power Co., Ltd., 747.
Manitoba Power Commission,
746.
Manitoba, University of, 775-6.
Manufacturer's Assn., Canad-
ian, 32, 900.
Manufacturers, British Export
of, 180-1.
Marfleet Lectures, The, 604-5.
Martin Administration in Sas-
katchewan, 777-91.
McAdoo Award, 382-3.
McMaster University, 607.
McGill University, 669-74.
MEIGHEN
GOVERNMENT :—
Agricultural Policy of, 324-5
Appointments in the, 319-20,
330-1.
Aviation Policy of, 432-4,
435-6.
Bureau of Statistics of, 327.
Bye-Elections and the, 367-9.
Canadian Nationals and the
366-7.
Canal Policy of, 322, 423-5.
Civil Re-establishment Pol-
icy of, 344-5.
Civil Service Commissions
and 328-30, 361-3.
Commissions of the, 326-7.
Defeat of 509-19.
Departmental Affairs of, 321-
30.
Development of Natural Re-
sources by, 321-2.
Drayton's Budget and Fin-
ances of, 26-33.
Foreign Policies of, 315-7,
364.
General Elections and the,
445-509.
Housing Policy of, 319, 326.
Indian Affairs and, 322.
Labour Policy of, 369-76.
Lake of the Woods Question ,
and the, 363-4.
Mail and Steamship sub-
sidies by, 420.
Re-organized, 319-20.
Merchantile Marine Policy
of, 324, 414-17.
Militia Policy of, 333-42.
Naval Policy of, 350-1.
Pension Policy of, 343-4.
Postal Rates Increase by,
181, 322-3.
THE CANADIAN ANNUAL REVIEW
Railway Problems, Policy
and Legislation of, 324
377-405, 413, 485.
Returned Soldier Policy of
319.
Roads and Highways, Policy
of, 438-09.
Medicine Hat Bye-Election
367.
Memorial Commission, Can-
adian Battlefields, 241.
Mennonites in Saskatchewan
797-98, 802.
Merchants Bank of Canada
39-43.
Metropolitan Commission,
Montreal, 657-9.
Military Appointments, Can-
adian, 340-2.
Military Institute, Canadian
340.
Military Strength of the Great
Powers, 107.
Militia, Defence Committee of,
334.
Militia Expenditures, Canad-
ian, 335, 337-9.
Militia Training in Canada,
334*5.
Minerals in Nova Scotia, 684,
686-7.
Mines and Minerals, Alberta,
822-3.
Mines and Minerals in B.C.,
892-3.
Mines and Minerals in Quebec,
650.
Minimum Wage Act, Alberta,
838.
Minimum Wage Board, On-
tario, 531-2.
Mining in N.B., 710.
Mining in Ontario, 576-9.
Moderation League, Alberta,
830.
Moderation League, B.C., 879.
Moderation League of Mani-
toba, 742-3.
Montreal Charter, 658-9.
Montreal Theological Colleges
677.
Montreal Tramways Co., Ltd.,
427-8.
Mortgage Interests, Canadian,
50-2.
Mothers' Allowance Act, On-
tario, 536, 626, 635.
Mothers' Allowance Com-
mission, Manitoba, 748-9.
Motor Industry, Canadian
441-2.
Mount Allison University, 730-1
Municipal Affairs in Ontario,
533-4.
Municipal Affairs, Saskatche-
wan, 786-8.
Municipal Conditions, Alberta,
840-2.
Municipal Conditions, B.C.,
867.
Municipal Finances Commis-
sion in Alberta, 859.
Munitions Question, 495-7.
Murray Administration in Nova
Scotia, 687-97.
National Congress, Indian, 178.
National Council of Women
503.
National Debt, Canadian, 27-9,
485.
National Debts, 18, 30, 162.
Nationalism in Australia, 171-2.
Nationalism in Canada, 169-71,
489.
Nationalism in Egypt, 178-80
Nationalism in Quebec, 486-8
Nationalism in India 174-8.
Nationalism in South Africa
172-4.
Nationals, Canadian, 366-7.
National Status of Canada
(See Dominion Status).
Natural Resources, Alberta
837-8, 849.
Natural Resources Question in
Manitoba, 740-2.
Naval Policy, Dominion, 350-1
Naval Tonnage, 107-8, 113-15
123.
Navy League of Canada, 352-5
NEW BRUNSWICK:—
Agricultural Conditions in
709-10, 712-13.
Dept. of Health in, 714, 724
Dominion Elections in, 451-2
460-1, 478, 509, 510, 515.
Educational Affairs in, 712-13
725-6, 729-31.
Finances of, 722-3.
Fisheries of, 710.
Foster Government in, 711-
23.
Government Appointments
in, 719.
Highways of, 438-9, 711-12,
724, 726.
Industrial Conditions in, 710
Legislation of 1921 in, 723-9
Lumbering Conditions in,
710-11, 713-14.
Mines and Minerals of, 710,
714.
Preferential Tariff and, 728.
Prohibition in, 717-18.
United Farmers of, 731-3.
Water Power Conditions in,
715-17.
N.B. Electric Power Commis-
sion, 715-17.
New Brunswick Power Co., 431,
716-17.
NEWFOUNDLAND :—
Canadian Relations with, 189
Economic Development of
188-92.
U.S. Tariff and, 188-9.
Niagara District Grape Grow-
ers, Ltd., 563-4.
Niagara Fruit Growers' Associ-
ation, 563, 564.
Niagara Peninsula Growers,
Ltd., 564.
Non-Partisan League, 47.
Norris Administration in Mani-
toba. 739-51.
North Oxford Bye-Election,
NOVA SCOTIA:—
Agricultural Conditions in,
684-5.
Commission on Mothers'
Pensions, 695-7.
Dominion Elections in, 451,
459, 509, 510, 513.
Educational Conditions in,
703-6.
Fisheries of, 687.
Government Appointments,
688.
G.W.V.A. in, 347.
Highways in, 438-9, 688-91.
Hydro-Power Questions and,
691-3, 698.
Industrial Conditions in, 686.
Legislation of 1921 in, 697-
702.
Mines and Minerals of, 684,
686-7, 694-5.
Murray Administration in
687-97.
Prohibition Issues of 661
Public Utilities of, 695.
Resources and Production in,
684-7.
Taxation in, 700-1.
United Farmers of, 708-9.
Workmen's Compensation
Board of, 695.
Nova Scotia Good Roads Assn.,
688-9.
Nova Scotia Tramways and
Power Co., 692-3.
Ocean Freight Rates, 421.
Oliver Govt. in British Col-
umbia, 859-69.
ONTARIO:—
Agricultural Conditions and
Policy in, 562-5, 566-71.
635-6, 637.
Budget and Financial Policy
in, 538-42.
Chippawa Canal Question
and, 529, 530.
Dominion Elections in, 452-4,
457, 461, 463-5, 477-8,
478-9, 493, 505-13.
Drury Policy and Admin-
istration in, 525-38.
Educational Policy and Leg-
islation, 585-608, 634, 636-7
Government Banking in, 44.
Government Appointments
in, 545-6.
Highways, Policy and Pro-
gress in, 438-9, 571-5,
625, 635, 636.
Hydro-Electric and Radial
Commission of, 157-8, 540,
608-24.
Labour Policy and Legisla-
tion in, 530-3, 535.
Lands and Forests of, 534-5.
Legislation Enacted in, 624-
38.
Mines and Minerals in, 576-9
Minimum Wage Board and
Legislation, 531-2, 535.
Mothers' Allowance Act, 635.
Municipal Affairs in, 533-4,
635.
Natural Resources of, 540.
North Oxford Bye- Election,
638-9.
Population of, 545.
Prohibition Issues and Leg-
islation, 529, 546-57, 560-1,
661.
Proportional Representation
in 537-8.
Public Debt of, 642.
Public Service Commission
of, 536-7.
Queen Victoria Park Com-
mission and, 534.
Race Tracks and Govt. of,
557-9, 561.
United Farmers' in, 507,
526-9, 531, 579-85.
Water Power in, 155.
Workmen's Compensation
Board of, 532-3.
Ontario Agricultural College,
604.
Ontario Board of License Com-
missioners, 551-2, 560-1.
Ontario Educational Assn., 603.
Ontario Historical Society, 604.
Ontario Library Assn., 603-4.
Ontario Motor League, 442-3.
Ontario Power Co., 623.
Ontario Railway and Municipal
Board, 626.
INDEX OF AFFAIRS
Ontario Temperance Act, 546-7
548-9, 551-2, 559-60.
Orpington Hospital, England,
541, 545.
Orange Order in Canada, 306,
310-14.
Pacific, Great Eastern Ry.,
860-1-2, 873.
Palestine, British Mandate in,
184-5.
Panama Canal Tonnage, 137-9.
Parliament Buildings, Cost of
New, 358-9.
Parliament, 1921 Session of
Canadian, 355-67.
Patents in Canada, 323.
Patriotic Fund, Canadian, 240.
Peace Portal at Elaine, U.S.,
136.
Penetanguishene Tercentenary
Celebration, 607-8.
Pension Commissioners, Do-
minion Board of. 343.
Phoenix, City of, 872.
Police Court, Report of Toron-
to, 537.
Post Office Department, 322-3.
Postal Rates, Increase, 322-3.
Power Commission, Nova
Scotia, 691-3.
Presbyterian Theological Col-
lege, Saskatoon, 805.
Press Conference of 1920, Im-
perial, 199-205.
Prices, Canadian Bond, 22-6.
Prices, Commodity, 19, 23, 72-4.
Prices in Canada, 72-4.
PRINCE EDWARD ISLAND,
Agricultural Conditions, 734.
Bell Administration in, 734-6.
Dominion Elections and, 457-
8, 459-60, 478, 509, 516.
Educational Conditions in ,
735, 736, 737.
Finances of, 735-6.
Legislation in, 736-7.
United Farmers of, 737-8.
Prince of Wales, Indian Tour,
of the, 165-7.
Privy Council, Appeal to,
232-4, 642, 653-4, 678.
Progressive Manifesto, The,
476-7.
Progressive Policy in the Elec-
tions, 447-8, 465-7, 474-7,
494-5.
Prohibition Committee, To-
ronto, 551.
Prohibition in B.C., 876-8,
879-80.
Prohibition in N.B., 717-18.
Prohibition in Nova Scotia,
693-4.
Prohibition in Ontario, 529,
546-57, 560-1.
Prohibition in P.E. Island, 737.
Prohibition in Quebec, 661.
Prohibition, Legislation and
Issues in Ontario, 529, 546-57,
560-1, 661.
Prohibition Question in Al-
berta, 829-32.
Prohibition Question in Mani-
toba, 742-3.
Proportional Representation in
Ontario, 537-8.
Protection and Free Trade,
Issues, 152-3, 167-8, 317-8.
446, 466-7,
Public Libraries, Ontario, 587'
Public School Trustees, Al-
berta, 845.
Public Service Commission ,
Ontario, 536-7.
Public Utilities Commission,
Manitoba, 428-9.
Public Utilities in N.S., 695.
Queen Victoria Park, Niagara
Falls, 534.
eueen's University, 605-6.
UEBEC:—
Agricultural Policy and Pro-
gress, 643, 652, 655-6, 660,
680, 681-3.
Budget and Financial Con-
ditions, 642, 643-5.
Bye-Elections, 652.
Colonization Policy in, 649-
50, 655-6.
Dominion Elections in, 451,
454, 481-91, 509, 510, 513-
15.
Education, 656, 657, 666-77.
Fish and Game in, 650, 659.
Government Appointments,
645, 647, 653.
Highways in, 438-9, 646-7,
648-9, 657, 659-60.
Industry in, 680-1.
Labour Conditions and Pol-
icy, 372-3, 645-6, 650-1.
Legislation in, 654-66.
Liquor and Prohibition Ques-
tions, 643, 654, 655, 660-6.
Mines and Minerals in, 650.
Municipal Affairs in, 651-2,
655, 657-9.
Natural Resources of, 643,
648, 655, 680.
Politics and Administration,
640-54.
Pulp and Paper Industry,
643, 648.
Taschereau Administration
in, 640-54.
United Farmers of, 683-4.
Water-Power in, 155, 680.
Water-Ways and, 159-60.
Buebec Charter, City, of, 659
uebec Geographical Commis-
sion, 649.
Quebec Liquor Commission,
663-6.
Quebec Streams Commission,
648-9.
Race Tracks in Ontario, 557-9.
Radials, Toronto, 622-3.
Railways in Manitoba, 744.
Railway Commissioners, Board
of, 381, 326-7.
Railway Conditions, Canadian
377-80, 482, 484.
Railway Discrimination against
B.C. ,860-1.
Railway Policy, Flavelle, 395-6.
490-1.
Railway Policy, Mr. King and
Government, 332-3.
Railway Rates Question, 381-5.
Railways in Alberta, 858.
Railways, Saskatchewan, 783-4.
Railways, Public Ownership of,
411, 412-13.
Recall in Ontario, The, 579.
Recall in Alberta, The, 856.
Reciprocity and Canada, 150-,3
357, 487, 494-5.
Reconstruction, World, 126.
Referendum Committee, To-
ronto, 529.
Regina College, 805.
Reparations, German, 180- 217,
316-17.
Reprisals and The Sinn Fein,
British, 264-8, 270-2,.
Retail Merchants Assn., 32.
Rhodes Scholars, 1920-21, 227-8
Ridley College, St. Catherines
607.
Riordon Question, 499-502.
Rockefeller Foundation, 598.
Roman Catholic Church and
Ireland, 276-80, 283-85.
Roumania Canadian Loan to.
32.
Royal Canadian Mounted
Police, 336.
Royal Irish Constabulary, 263 .
Royal Military College, 335-6.
Rural Credits, 44, 52.
Rural Credits in Manitoba,
754-6.
Rural Credits, Ontario Com-
mission on, 566-8.
Russian Soviet and Trade, 316 .
Ruthenians and the Elections,
492.
Sales Tax, The Dominion, 466.
"Sandy Bill", The, 550-1, 557.
SASKATCHEWAN :—
Agricultural Conditions in ,
794-800.
Dept. of Labour and In-
dustries in, 789.
Dept. of Public Health in,
789-90.
Dominion Elections and, 461-
3, 494, 509, 510, 516-17,
782-3.
Educational Conditions in ,
777-8, 800-6.
Financial Conditions of, 791-3
General Elections in, 808-13.
Government Appointments
in, 777, 781.
Government Telephones of,
784.
Grain Growers of, 494, 779-
80, 806-8.
G.W.V.A., in, 346.
Highways in, 438-9, 784-5.
Langley Resignation and
Govt. of 781-2.
Legislation of 1921, in, 793:4.
Martin Administration in ,
777-91.
Municipal Affairs in, 786-8 .
Prohibition in, 661, 790.
Taxation in, 788-9.
Water Power in, 155.
Saskatchewan Co-operative
Elevator Co., 777, 806.
Saskatchewan Grain Growers
Assn., 779-80, 806-8.
Saskatchewan, University of,
804-5.
Saving's Certificates Act, Al-
berta, 834, 842.
School Teachers' Strike, Al-
berta, 846.
School Teachers' Strikes, B.C.,
886.
School Trustees Assn., Sas-
katchewan, 802-4.
Schools in Quebec, 666-9.
Scientific and Industrial Re-
search Council, 857.
Self-Determination League,
306-10, 311.
Senate, Appointments to, 330.
Senate Debates, 359.
Separate Schools in Ontario,
591-7.
Sharpies Estate Case, 653-4.
Shevlin-Clarke Co., Ltd., 627,
629-30.
Shipping, Tonnage, 420-21.
Sinn Fein, 260-8.
Shaughnessy Railway Policy,
The, 409-11.
Social Service Council, 503.
THE CANADIAN ANNUAL REVIEW
Socialism in Elections, 508.
Socialism in Manitoba, 760-1.
Soldiers' Civil Re-establish-
ment, 342-5.
Soldiers' Land Settlement
Board, 344-5.
Soldiers' Settlement Board,
B.C., 865-6-7.
South African Elections, 173.
Spanish River Pulp and Paper
Co., 627, 628.
Speaker's Chair to Canada'
Presentation of, 183, 358.
Speech from the Throne, Al-
berta, 832-3.
Speech from the Throne, B.C.,
869-70, 872-3.
Speech from the Throne, Mani-
toba, 758-9.
Speech from the Throne, N.B.,
723-4.
Speech from the Throne, N.S.,
697-8.
Speech from the Throne, On-
tario, 624-5.
Speech from the Throne, P.E.
Island, 736.
Speech from the Throne, Que-
bec, 654-5.
Speech from the Throne, Sas-
katchewan, 793.
Speech from the Throne, Do-
minion, 355-6.
Statistical Year Book, Quebec,
650-2.
St. John and Quebec Railway,
725, 728.
St. John's College, Winnipeg,
St. John Harbour Commission,
719.
St. Lawrence Waterways Plan,
156-9.
St. Mary's and Milk Rivers,
820.
Stewart Government in Al-
berta, 827-46, 848-50, 856.
Store Cattle, Royal Commis-
sion on Import of, 235-7.
Submarine Tonnage, 114-15.
Supreme Court, Alberta, 827-8.
Survey Board, Southern Al-
berta, 821.
Tariff and the General Elec-
tions, 445-54, 457, 458, 481-2,
484, 489.
Tariff, Australian, 254.
Tariff, Proposed Permanent,
U.S., 148-50.
Tariff Questions in Canada, 27-8
29, 132, 144-53, 315, 318.
Taschereau Administration in
Quebec, 640-54.
Taxation, Canadian, 31-3, 450,
466.
Taxation in Manitoba, 759-60,
763, 764, 765.
Taxation in N.S., 700-1.
Taxation in Saskatchewan, 788-
9.
Teachers' Alliance Alberta,
844-6.
Teachers, Imperial Conference
of, 225-7.
Teachers, Imperial Inter-
change of, 226.
Telephones in Saskatchewan
784.
Telephones, Manitoba Govern-
ment, 748.
Telephone Rates, Enquiry, 387-8
Telephone System Alberta
Government, 829, 858.
Temiskaming and Northern
Ontario Railway, 535-6.
Timber Enquiry Commission
Ontario, 626-30.
Titles in Canada, Foreign, 187-8
Toronto Railway Co., Ltd.,
425-6.
Toronto Transportation Com-
mission, 426-7.
Trade Agreement, French, 315.
Trades and Labour Congress,
Dominion Goyt., and, 370-2.
Tranquille Sanitarium, B.C.,
871.
Trent Valley Canal, 317.
Trinity University, 598, 606.
Trust and Loan Companies,
Canadian, 50-3.
Tuberculosis Commission, Sas-
katchewan, 790.
Ulster, Government of. 275. 296
Ulster League of North Amer-
ica, 290.
Ulster, Orange Order in Canada
and, 310-14.
Ulster. Population of, 272.
Ulster, Prosperity of, 272-3.
Unemployment, Federal Relief
for, 369-70.
Unemployment in Canada, 376.
Unemployment in N.B., 720.
Unemployment in US., 369.
United Farmers of B.C., 895-6.
United Farmers' Co-operative
Co., 582-4.
United Farmers of Nova Scotia,
708-9.
United Farmers of Alberta,
467, 824-5-6, 850-1.
United Farmers of Manitoba,
768-72.
United Farmers of N.B., 731-3.
United Farmers of Ontario, 526-
9, 579-82.
United Farmers of P.E. Island,
937-8.
United Farm Women, Alberta,
836-7.
United Farm Women of Mani-
toba, 772.
United Farm Women of On-
tario, 584-5.
United Grain Growers, Ltd.,
467-9, 470-3.
United States, Relations with,
102-62.
U.S., Cabinet Appointments in,
128-9.
U.S., Canadian Relations with,
19 22-4, 27, 29, 43, 72, 91,
94, 129-61, 357, 641.
U.S., Gold Reserves of, 20-1.
U.S., Rural Banking in, 45-7.
Territorial Expansion of, 128.
Universities, Congress of Em-
pire, 222-5.
University Commission, On-
tario, 588-9, 600, 605, 606.
University of Montreal, 645,
674-5.
University of N.B., 729-30.
University of St. Francis
Xavier, Antigonish, 705.
University of St. Joseph's Col-
lege, 730.
University of Toronto, 539,
597, 601, 604, 641.
Upper Canada College, 607.
Versailles Conference, Canada
and the, 75.
Veterans' Assns., Projected
Union of, 349-50.
Veteran's Conference, Em-
pire, 228-30.
Victoria University, Toronto,
598, 606.
Vital Statistics, Dominion, 327.
Wages, Canadian Railway, 386.
Wages, U.S. Railway, 385.
War, Alberta and the, 850.
War Enlistments and Casual-
ties of Empire, 240.
War Loans, British and U.S.,
125.
War Loans, Canadian, 326.
War Memorial, Orpington, 254.
War Memorials, Ontario, 637.
War Trophies, 240.
War Veteran's Relief, 637.
Washington, Conference, Can-
ada and the 102, 116-19, 580.
Washington Conference, The,
17, 102-126, 580.
Water-Powers, Canadian, 155-
61.
Water Power Conditions in
N.B., 715-17.
Water-powers in Quebec, 680.
Waterways, Canadian Inland,
155-61.
Waterways, U.S. Opposition
and, 160-1.
Wesley College, Winnipeg, 776.
West Indies, Canadian Trade
with, 193-7, 728.
Western Canada Irrigation Con-
ference, 820-1.
Western University, London,
590, 606.
Wheat Board, Canada, 326, 467
Wheat Championship, World's
796.
Winnipeg Labour Convention,
508.
Wireless Communications, 216,
219.
Wireless Developments, Em-
pire, 443-4.
Women's Christian Temper-
ance Union, 502-3.
Women in Alberta Elections,
853.
Women in the Dominion Elec-
tions, 502-4.
Women's Institutes, Alberta,
815.
Women's Saskatchewan Grain
Growers Assn., 808.
Woodstock College, 607.
Workmen's Compensation Bd.,
B.C., 868.
Workmen's Compensation Bd.,
N.S., 695.
Workmen's Compensation Bd.i
Ontario, 532-3.
World War, Termination of the,
316.
Wycliffe College, Toronto, 606-7
Yamaska Bye-Election, 368.
York-Sunbury Bye-Election,
318, 368-9.
Young Men's Christian Associ-
ation, 899-900.
Yukon Territory, 896-7.
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